WALL STREET'S BIG WINNER IN THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INCORPORATED SHAPES UP AS SMITH BARNEY SHEARSON INCORPORATED WHICH STANDS TO REAP FEES OF BETWEEN TWENTY FIVE MILLION DOLLARS AND THIRTY MILLION DOLLARS SMITH BARNEY'S TWELVE POINT FIVE MILLION DOLLAR FEE FOR ADVISING VIACOM INCORPORATED ON THE ORIGINAL EIGHT POINT TWO BILLION DOLLARS FRIENDLY PARAMOUNT VIACOM MERGER LAST SEPTEMBER WAS THREATENED BY THE HOSTILE TAKEOVER BID BY Q. V. C. NETWORK INCORPORATED BUT THE TRAVELERS INCORPORATED UNIT AND ITS NEW CHIEF EXECUTIVE OFFICER FORMER MORGAN STANLEY AND COMPANY MERGERS ACE ROBERT GREENHILL BOUNCED BACK BY NOT ONLY WINNING THE PARAMOUNT BATTLE BUT ALSO BY ADVISING VIACOM ON AN ADDITIONAL EIGHT POINT FOUR BILLION DOLLAR FRIENDLY TAKEOVER OF BLOCKBUSTER ENTERTAINMENT CORPORATION NEGOTIATED IN JANUARY ALTHOUGH FEES FOR THE BLOCKBUSTER DEAL HAVEN'T BEEN DISCLOSED SMITH BARNEY IS EXPECTED TO RECEIVE ROUGHLY THE SAME SIZE FEE FOR THAT DEAL AS THE PARAMOUNT TRANSACTION PLUS AN ADDITIONAL FEE FOR NEGOTIATING A ONE POINT TWO BILLION DOLLAR INVESTMENT IN VIACOM BY NYNEX CORPORATION BLOCKBUSTER WAS REPRESENTED BY MERRILL LYNCH AND COMPANY AND VIACOM WAS ALSO ADVISED ON THE PARAMOUNT DEAL BY BEAR STEARNS AND COMPANY AND GOLDMAN SACHS AND COMPANY LAZARD FRERES AND COMPANY ALSO STANDS TO RECEIVE TWELVE POINT FIVE MILLION DOLLARS FOR ADVISING PARAMOUNT ALTHOUGH Q. V. C. HAD TO SPEND THIRTY TWO MILLION DOLLARS ON LEGAL FEES AND BANK COMMITMENT FEES ITS INVESTMENT BANKER ALLEN AND COMPANY SAID IT WOULDN'T BILL Q. V. C. FOR ANY FEES IF Q. V. C. DIDN'T ACQUIRE PARAMOUNT THE FIRM OF WASSERSTEIN PERELLA AND COMPANY WHICH ONCE DOMINATED THE MERGER RANKINGS IN THE LATE NINETEEN EIGHTIES MISSED OUT ON COUNTING THE PARAMOUNT DEAL IN ITS NINETEEN NINETY FOUR TOTALS BECAUSE IT WAS ADVISING BELLSOUTH CORPORATION ON ITS INVESTMENT IN Q. V. C. SOUTHWEST AIRLINES WILL ADD FOUR NEW CITIES TO ITS ROUTE MAP NEXT QUARTER ALL IN THE WESTERN HALF OF THE NATION AND PLANS TO BOOST SERVICE ON THE EAST COAST LATER THIS YEAR BY ADDING GATES IN BALTIMORE IN A MEETING WITH WALL STREET ANALYSTS IN NEW YORK YESTERDAY SOUTHWEST CHAIRMAN HERBERT D. KELLEHER SAID THE DALLAS BASED CARRIER WILL START FLYING TO AIRPORTS IN PORTLAND OREGON ORANGE COUNTY CALIFORNIA SEATTLE AND SPOKANE WASHINGTON DURING THE SECOND QUARTER EACH OF THOSE CITIES IS CURRENTLY SERVED BY MORRIS AIR CORPORATION WHICH SOUTHWEST BOUGHT LAST YEAR SINCE THE MORRIS PURCHASE COMPLETED DECEMBER THIRTY FIRST SOUTHWEST AND MORRIS HAVE BEEN TRYING TO COMBINE THEIR ROUTE STRUCTURES IN ADDITION TO TAKING OVER THOSE FOUR WESTERN CITIES FROM MORRIS SOUTHWEST PLANS TO STOP MORRIS SERVICE TO PALM SPRINGS CALIFORNIA AND EUGENE OREGON OTHER MORRIS CITIES COULD BE ELIMINATED MR. KELLEHER SAID THAT THE SUCCESS OF SOUTHWEST'S SERVICE TO THE EAST COAST SINCE LAST SEPTEMBER IS PROMPTING THE CARRIER TO SEEK ADDITIONAL GATES AT BALTIMORE SLASH WASHINGTON AIRPORT WHICH COULD HEAT UP AN ALREADY COMPETITIVE FARE WAR BY YEAR'S END SOUTHWEST WILL HAVE EIGHT GATES UP FROM THE CURRENT TWO WELLS FARGO AND COMPANY SAID IT WILL REDEEM MARCH TWENTY FIRST ALL OF ITS SERIES A PREFERRED STOCK AT FIFTY DOLLARS A SHARE PLUS ACCRUED DIVIDENDS OF SIXTY SIX POINT SEVEN CENTS A SHARE CHRIS LITTMODEN FIFTY YEARS OLD WAS NAMED DIRECTOR OF NORTH AMERICAN OPERATIONS AT THIS APPAREL HOME FURNISHINGS AND FOOD PRODUCTS RETAILER SUCCEEDING PAUL SMITH FIFTY THREE WHO BECOMES A DIRECTOR AT THE COMPANY'S FAR EAST OPERATIONS IN HONG KONG MR. LITTMODEN WAS FORMERLY DIRECTOR OF FINANCIAL CONTROL IN LONDON MAGAZINES NEWS CORPORATION SAID CATHERINE VISCARDI ADVERTISING DIRECTOR OF NEW YORK MAGAZINE WILL BECOME PUBLISHER OF MIRABELLA MAGAZINE EFFECTIVE FEBRUARY TWENTY EIGHTH MS. VISCARDI FORTY WILL SUCCEED REBECCA DARWIN WHO MIRABELLA SAID QUOTE HAS LEFT THE COMPANY QUOTE MS. DARWIN ALSO FORTY JOINED MIRABELLA AS PUBLISHER IN NINETEEN NINETY ONE ANGLO AMERICAN INDUSTRIAL CONGLOMERATE HANSON P. L. C. SAID ITS FISCAL FIRST QUARTER PRETAX PROFIT FELL TWENTY SEVEN PERCENT TO ONE HUNDRED SEVENTY THREE MILLION POUNDS TWO HUNDRED FIFTY SEVEN MILLION DOLLARS FROM TWO HUNDRED THIRTY SIX MILLION POUNDS HANSON SAID THE RESULTS WERE AFFECTED BY SIXTY SEVEN MILLION POUNDS IN COSTS RELATED TO THE STRIKE AT ITS PEABODY COAL MINES IN THE U. S. AS WELL AS INCREASED INTEREST COSTS SALES IN THE PERIOD ENDED DECEMBER THIRTY FIRST GREW TWENTY FIVE PERCENT TO TWO POINT EIGHT NINE BILLION POUNDS FROM TWO POINT THREE OH BILLION POUNDS EXCLUDING THE COST OF THE STRIKE EXCEPTIONAL ITEMS AND INTEREST HANSON WOULD HAVE REPORTED PROFIT OF TWO HUNDRED THIRTY MILLION POUNDS UP FROM ONE HUNDRED EIGHTY SEVEN MILLION POUNDS A YEAR EARLIER THAT INCLUDES A TWENTY FIVE MILLION POUND FIRST TIME CONTRIBUTION FROM QUANTUM CHEMICAL CORPORATION WHICH HANSON ACQUIRED LAST YEAR HANSON SAID THAT INCREASED NET INTEREST COSTS MOSTLY WERE DUE TO THE NARROWING OF STERLING DOLLAR INTEREST SPREADS SHORTER DEPOSIT MATURITIES AND ACQUISITIONS INCLUDING QUANTUM TOTALING TWO POINT NINE BILLION POUNDS THE COMPANY CONTINUED TO REDUCE DEBT WITH PROCEEDS FROM THE COMPLETION OF CERTAIN DISPOSALS AND HAS ANNOUNCED OTHERS INCLUDING THE SEPARATE FLOTATIONS IN THE U. S. AND U. K. OF THE TWO BEAZER HOMES BUSINESSES YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE MIXED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIX MONTH SMALLDENOMINATION QUOTE SAVINGS QUOTE C. D.S INCHED UP TO TWO POINT EIGHT TWO PERCENT FROM TWO POINT SEVEN SEVEN PERCENT ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVE YEAR SAVINGS C. D.S ALSO ROSE A BIT TO FOUR POINT FIVE FOUR PERCENT FROM FOUR POINT FOUR NINE PERCENT THE WILMINGTON DELAWARE INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIX MONTH BROKER SOLD C. D.S REMAINED AT THREE POINT ONE SEVEN PERCENT ON FIVE YEAR BROKER SOLD C. D.S THE AVERAGE YIELD FELL TO FOUR POINT FOUR FOUR PERCENT FROM FOUR POINT SIX FOUR PERCENT THE SURVEY SAID ON LARGE DENOMINATION JUMBO C. D.S WHICH TYPICALLY REQUIRE DEPOSITS OF NINETY FIVE THOUSAND DOLLARS AND MORE THE AVERAGE YIELD ON A SIX MONTH CERTIFICATE CLIMBED TO TWO POINT NINE FOUR PERCENT FROM TWO POINT EIGHT EIGHT PERCENT ON FIVE YEAR JUMBOS THE AVERAGE ROSE TO FOUR POINT EIGHT ONE PERCENT FROM FOUR POINT SEVEN FIVE PERCENT ACCORDING TO BANXQUOTE GENERAL MOTORS CORPORATION SCRAMBLING TO CASH IN ON A RISING MARKET SAID IT WILL ADD ANOTHER ASSEMBLY PLANT'S WORTH OF TRUCK CAPACITY AND ACCORDING TO UNION OFFICIALS DROPPED PLANS TO SLASH ONE THOUSAND TWO HUNDRED JOBS AT A MAJOR PARTS MAKING COMPLEX IN FLINT MICHIGAN THUS AVERTING A PRODUCTION CRIPPLING STRIKE THE SEPARATE ACTIONS HIGHLIGHT G. M. PRESIDENT JOHN F. SMITH JUNIOR'S DETERMINATION THAT G. M. MUST PUMP OUT EVERY VEHICLE IT CAN AS HE PUSHES TO MAKE GOOD ON A VOW TO RETURN THE COMPANY'S NORTH AMERICAN VEHICLE OPERATIONS TO A PROFIT THIS YEAR AFTER MORE THAN FOUR YEARS IN THE RED TO BOOST TRUCK PRODUCTION G. M. SAID LATE YESTERDAY IT WILL ADD A THIRD PRODUCTION SHIFT THIS SPRING AT ITS FLINT MICHIGAN FULL SIZE VAN FACTORY AND ADD A THIRD WORK TURN IN JANUARY NINETEEN NINETY FIVE AT THE PONTIAC MICHIGAN EAST PLANT THAT BUILDS FULL SIZE PICKUPS THOSE TWO EXTRA SHIFTS OF PRODUCTION WILL MEAN JOBS FOR ONE THOUSAND NINE HUNDRED G. M. BLUE COLLAR WORKERS WHO MIGHT OTHERWISE HAVE BEEN IDLED G. M. ALSO WILL EXTEND PRODUCTION OF ITS CURRENT S. TEN BLAZER SPORT UTILITY VEHICLES THROUGH NOVEMBER AT ITS PONTIAC MICHIGAN WEST ASSEMBLY PLANT THAT PLANT WAS SCHEDULED TO CLOSE PERMANENTLY IN SEPTEMBER ALL TOGETHER THE EXTRA SHIFTS AND WORK EXTENSIONS COULD GIVE G. M. AS MANY AS ONE HUNDRED EIGHTY THOUSAND TO TWO HUNDRED THOUSAND EXTRA TRUCKS A YEAR A G. M. SPOKESWOMAN WOULD SAY ONLY THAT THE ADDED PRODUCTION IS QUOTE A SIZABLE NUMBER QUOTE JUST TWELVE DAYS AGO AMID COMPLAINTS FROM HIS MARKETING OPERATIONS THAT THEY WERE RUNNING SHORT OF POPULAR HIGH PROFIT TRUCK MODELS MR. SMITH DECLARED DURING A SPEECH IN CHICAGO THAT WE'VE GOT TO COME UP WITH INNOVATIVE WAYS TO INCREASE TRUCK PRODUCTION TURNING TOWARD THE HEAD OF G. M.'S DOMESTIC TRUCK OPERATIONS CLIFFORD J. VAUGHAN MR. SMITH ADDED DRYLY CLIFF'S WORKING ON THAT ATTABOY CLIFF MEANWHILE G. M. OFFICIALS YESTERDAY BACKED AWAY FROM A SHOWDOWN WITH THE UNITED AUTO WORKERS UNION OVER LABOR COSTS IN ITS PARTS OPERATIONS AFTER THE UNION THREATENED A STRIKE AT AN A. C. ROCHESTER DIVISION FACTORY IN FLINT THAT WOULD HAVE SHUT DOWN NEARLY ALL OF G. M.'S DOMESTIC ASSEMBLY OPERATIONS THE SEVEN PLANTS IN THE FLINT EAST COMPLEX SUPPLY SPARK PLUGS FUEL PUMPS INSTRUMENT CLUSTERS AND A VARIETY OF OTHER PARTS USED IN VARIOUS G. M. VEHICLES G. M. REFUSED TO DISCUSS SPECIFICS OF THE FLINT LABOR AGREEMENT SAYING ONLY THAT IT WAS A WIN WIN FOR BOTH UNION AND COMPANY BUT DALE LEBEAU PRESIDENT OF U. A. W. LOCAL SIX HUNDRED FIFTY ONE SAID G. M. APPROVED A TENTATIVE LOCAL AGREEMENT THAT WILL HOLD EMPLOYMENT IN ITS A. C. ROCHESTER FLINT EAST COMPLEX AT ITS PRESENT LEVEL OF APPROXIMATELY SEVEN THOUSAND WORKERS INSTEAD OF CUTTING THE WORK FORCE BY SOME SEVENTEEN PERCENT OR ONE THOUSAND TWO HUNDRED JOBS G. M. AGREED TO BRING ADDITIONAL WORK BACK INTO FLINT TO MAINTAIN THE CURRENT EMPLOYMENT LEVEL HE SAID THE FLINT SETTLEMENT WILL KEEP G. M.'S FACTORIES RUNNING BUT IT REPRESENTS ANOTHER SETBACK FOR G. M.'S CAMPAIGN TO CUT LABOR COSTS THAT ARE THE HIGHEST IN THE INDUSTRY IN JANUARY G. M. AGREED TO ADD ONE HUNDRED WORKERS AT ITS SHREVEPORT LOUISIANA PLANT TO END A FOUR DAY STRIKE PROMPTED BY G. M.'S ATTEMPT TO RUN THE ASSEMBLY LINE FASTER WITH FEWER WORKERS G. M. UNSUCCESSFULLY SOUGHT A TWO TIER WAGE STRUCTURE FOR PARTS WORKERS IN LAST YEAR'S NATIONAL NEGOTIATIONS LOOKING TO SCALE BACK WAGES AND BENEFITS THAT TOTAL NEARLY FORTY THREE DOLLARS AN HOUR AND ARE MORE THAN DOUBLE WHAT WORKERS AT MOST INDEPENDENT PARTS MAKERS EARN J. T. BATTENBERG THE THIRD WHO HEADS G. M.'S PARTS OPERATIONS SOLD OFF SEVERAL UNCOMPETITIVE PARTS OPERATIONS LAST YEAR BUT NOW HIS DRIVE TO SLASH LABOR COSTS AT THE BUSINESSES HE WANTS TO KEEP SEEMS TO BE RUNNING INTO INCREASING RESISTANCE FROM THE U. A. W. G. M. CAN STILL GET PRODUCTIVITY GAINS SAID ANALYST RONALD GLANTZ OF DEAN WITTER REYNOLDS QUOTE BUT IT WILL HAVE TO KEEP THE SAME NUMBER OF WORKERS AND GIVE THEM MORE WORK TO DO QUOTE THAT PATH MEANS THAT G. M. WILL CONTINUE TO HAVE HIGHER PART COSTS IN MANY AREAS THAN COMPETITORS SUCH AS CHRYSLER CORPORATION OR TOYOTA MOTOR CORPORATION WHICH RELY HEAVILY ON OUTSIDE SUPPLIERS G. M. STOCK CLOSED AT SIXTY ONE POINT SIX TWO FIVE DOLLARS A SHARE DOWN TWELVE POINT FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE UNION HAS SCHEDULED A FRIDAY RATIFICATION VOTE FOR THE FLINT LABOR AGREEMENT IN ADDITION TO FLINT G. M. HAS TWENTY EIGHT OTHER LOCATIONS OUT OF A TOTAL OF ONE HUNDRED SEVENTEEN LOCATIONS WHERE IT HAS YET TO REACH LOCAL LABOR CONTRACTS ORACLE CORPORATION UNVEILED NEW MULTIMEDIA SOFTWARE IN ITS QUEST TO PROVIDE THE TECHNOLOGY TO BRING INTERACTIVE SERVICES SUCH AS MOVIES ON DEMAND AND SHOPPING TO HOMES THE REDWOOD SHORES CALIFORNIA SOFTWARE COMPANY SAID THE PRODUCTS INCLUDE ORACLE MEDIA SERVER A DIGITAL QUOTE MULTIMEDIA LIBRARY QUOTE FOR STORING RETRIEVING AND MANAGING VIDEO AUDIO TEXT AND OTHER DATA ORACLE MEDIA OBJECTS A TOOL FOR SOFTWARE DEVELOPERS TO CREATE MULTIMEDIA INTERACTIVE SERVICES AND C. D. ROM PROGRAMS AND ORACLE MEDIA NET WHICH CONNECTS THE HOME T. V. TO THE MULTIMEDIA LIBRARY VIA PHONE LINES SATELLITE BROADCASTS AND CABLE ORACLE'S NEW TECHNOLOGY BROADCAST YESTERDAY TO NEW YORK WASHINGTON AND TOKYO IN A LIVE VIDEO HOOKUP FROM C. B. S. STUDIOS IN LOS ANGELES HAS GAINED SUPPORT FROM TWENTY COMPANIES INCLUDING CAPITAL CITIES SLASH A. B. C. INCORPORATED AND WASHINGTON POST COMPANY SEPARATELY ORACLE AND MOTOROLA INCORPORATED SCHAUMBURG ILLINOIS SAID THEY HAVE AGREED TO WORK TOGETHER TO PROVIDE WIRELESS TRANSFER OF CORPORATE DATA SERVED THROUGH ORACLE DATABASES AND ORACLE MEDIA SERVER PRODUCTS USING ORACLE'S DATABASE AND NETWORK TECHNOLOGY AND MOTOROLA'S MOBILE NETWORKS INTEGRATION WIRELESS TECHNOLOGY ARE TO BE ANNOUNCED LATER THIS YEAR MARK G. PAPA FORTY SEVEN YEARS OLD FORMERLY A SENIOR VICE PRESIDENT OF THIS OIL AND NATURAL GAS COMPANY WAS NAMED TO THE NEW POSITION OF PRESIDENT NORTH AMERICAN OPERATIONS WHEN EDOUARD BALLADUR TOOK OVER AS FRENCH PRIME MINISTER LAST APRIL A TOP EUROPEAN DIPLOMAT IN PARIS DESCRIBED HIS MANDATE AS THE TRICKY ONE OF QUOTE DOING NOTHING WHILE SEEMING TO DO A LOT QUOTE THE COMMENT WAS A DELIBERATE EXAGGERATION OF COURSE BUT ONE THAT IS STILL ON THE MARK TEN MONTHS LATER MR. BALLADUR HAS EMERGED AS A MASTER OF CRISIS MANAGEMENT A MAN WHOSE ASSURED BUT UNDERSTATED MANNER AND STRATEGY OF AVOIDING CONFLICT AT ANY COST AND IT'S OFTEN HIGH APPEARS TO BE JUST THE TONIC THE FRENCH PUBLIC IS LOOKING FOR MR. BALLADUR HAS OPTED FOR A TYPE OF BAND AID POLITICS FIXING ONLY WHAT IS IN NEED OF IMMEDIATE REPAIR AND OFFERING SOOTHING ASSURANCES THAT HARD TIMES WILL SOON BE OVER SATIRISTS HERE DEPICT HIM AS A NATIONAL HYPNOTIST WHO MAKES PEOPLE FORGET THEIR REAL AILMENTS IN A NINETY MINUTE TELEVISION INTERVIEW MONDAY NIGHT THE PRIME MINISTER INSISTED THAT THERE WOULD BE NO CHANGE IN POLICY DESPITE A CONTINUING INCREASE IN UNEMPLOYMENT AND FORECASTS OF MEAGER ECONOMIC GROWTH OF ONE POINT FOUR PERCENT THIS YEAR I AM NOT GOING TO PUT INTO QUESTION SOMETHING THAT IS BEGINNING TO PRODUCE GOOD RESULTS HE SAID BUT AS MR. BALLADUR AND HIS AIDES ACKNOWLEDGE A HARSH REALITY IS KNOCKING AT THE DOOR THERE ARE MAJOR SHORTCOMINGS IN THE STRUCTURE OF THE FRENCH ECONOMY THAT ARE DAMAGING ITS COMPETITIVE POSITION AT A TIME WHEN GERMANY BRITAIN AND SOME OF FRANCE'S OTHER EUROPEAN NEIGHBORS ARE TRYING TO IMPROVE THEIR OWN COMPETITIVENESS PARIS IS LAGGING BEHIND THE REAL QUESTION IS HOW LONG CAN WE KEEP GOING WITHOUT MAKING FUNDAMENTAL REFORMS SAYS FRANCOIS PERIGOT PRESIDENT OF THE FRENCH NATIONAL EMPLOYERS' ASSOCIATION HE AND OTHER BUSINESS LEADERS WHILE GENERALLY SYMPATHETIC TO THE BALLADUR GOVERNMENT SAY MAJOR ISSUES MUST BE ADDRESSED SOON THEY INCLUDE THE HEAVY BURDEN OF SOCIAL SECURITY AND OTHER OBLIGATORY LEVIES ON COMPANIES THAT RANK AMONG THE HIGHEST IN EUROPE A SYSTEM OF NATIONAL HEALTH INSURANCE WHOSE COSTS HAVE GONE AWRY AND WHICH TAKES LITTLE ACCOUNT OF DEMOGRAPHIC TRENDS AND THE ALMOST COMPLETE ABSENCE OF PRIVATE PENSION FUNDS A HISTORICAL QUIRK THAT EVERYONE AGREES MUST BE CORRECTED THE SHORT TERM OUTLOOK IS ALSO HAZY WHILE MR. BALLADUR IS EXHORTING FRANCE TO PULL ITSELF OUT OF RECESSION BY CONSUMING MORE BANKERS WORRY THAT FRANCE IS CLOSE TO DISINFLATION PRICES ON MANY GOODS ARE ACTUALLY FALLING WHILE REAL INTEREST RATES PEGGED TO LEVELS IN GERMANY ARE CRIPPLINGLY HIGH FOR COMPANIES TO BE SURE MR. BALLADUR HAS ENJOYED SOME IMPORTANT SUCCESSES HE MANAGED TO COAX A RELUCTANT NATION INTO ACCEPTING A NEW WORLD TRADE ACCORD AFTER THREATENING FOR MONTHS TO VETO IT AND TAKING ADVANTAGE OF A SOARING STOCK MARKET HE IS SELLING OFF SEVERAL LARGE STATE OWNED COMPANIES TO THE PUBLIC BUT MOST OF HIS EFFORTS ARE ON A SMALLER SCALE AIMED AT PUTTING OUT LOCAL FIRES HIS ANSWER TO MOST PROBLEMS BE THEY STRIKING AIR FRANCE WORKERS FLOODS IN THE SOUTH OF THE COUNTRY PROTESTING TEACHERS OR ANGRY FARMERS AND FISHERMAN IS TO AVOID CONFRONTATION AND PULL OUT HIS CHECKBOOK WHILE THE NATIONAL BUDGET DEFICIT IS STILL A MANAGEABLE FOUR PERCENT OF GROSS NATIONAL PRODUCT HIS LARGESSE WILL MAKE IT DIFFICULT TO REDUCE IN THE NEAR FUTURE RISING UNEMPLOYMENT CURRENTLY AT TWELVE PERCENT IS THE BIGGEST NATIONAL PREOCCUPATION BUT SO FAR MR. BALLADUR'S PIECEMEAL REMEDIES HAVE FAILED TO CURB THE INCREASE BUSINESS LEADERS COMPLAIN THAT THEY ARE UNDER STRONG POLITICAL PRESSURE NOT TO LAY OFF WORKERS EVEN IF THEY NEED TO CUT COSTS AND A HOST OF SMALL MEASURES THAT WERE ANNOUNCED RECENTLY TO BOOST EMPLOYMENT AND CONSUMPTION HAVE BEEN GREETED WITH SKEPTICISM AMONG THOSE IDEAS HE URGED THE HIRING OF MORE JANITORS AND GAS STATION ATTENDANTS AND PROMOTED A PLAN TO GIVE FIVE THOUSAND FRANCS EIGHT HUNDRED FIFTY TWO DOLLARS TO PEOPLE WHO TRADE IN THEIR TEN YEAR OLD CARS FOR NEW ONES ONE GROUP OF JOBLESS PEOPLE IN TOULOUSE SENT MR. BALLADUR A CHECK FOR FIVE THOUSAND FRANCS TELLING HIM IT WAS TIME TO TRADE IN HIS OLD IDEAS FOR SOME NEW ONES OVERALL HOWEVER FRANCE SEEMS TO APPLAUD HIS MANAGEMENT AND IN DOING SO IS NURTURING MR. BALLADUR'S PRESIDENTIAL AMBITIONS RAYMOND BARRE A FORMER PRIME MINISTER CONTENDS THAT MR. BALLADUR'S STYLE ACCORDS WELL WITH THE NATION'S CURRENT PSYCHOLOGICAL STATE AFTER YEARS OF UPHEAVAL BROUGHT ABOUT BY PREVIOUS SOCIALIST GOVERNMENTS AND AT A TIME WHEN THE FRENCH SEEM NERVOUS ABOUT THEIR FUTURE THE PRIME MINISTER DOESN'T TROUBLE THEIR TRANQUILLITY AND AVOIDS MAKING WAVES MR. BARRE SAYS MR. BALLADUR REMAINS VERY POPULAR EVEN IF HIS APPROVAL RATINGS HAVE DROPPED SLIGHTLY IN RECENT WEEKS IF A PRESIDENTIAL ELECTION WERE TO BE HELD TODAY RATHER THAN AS SCHEDULED IN JUST OVER A YEAR POLLS SHOW MR. BALLADUR WOULD WIN EASILY THAT IS BOTH A BLESSING AND A CURSE BECAUSE MR. BALLADUR'S CAUTION IS BASED IN PART ON THE PRECARIOUSNESS OF HIS SITUATION AND HIS LACK OF ROOM TO MANEUVER ECONOMICALLY HE TOOK OVER A NATION IN RECESSION WITH AN ALREADY OVERSTRETCHED BUDGET POLITICALLY HIS POSITION OF PRIME MINISTER WAS MORE AKIN TO ONE OF CARETAKER MR. BALLADUR WAS SUPPOSED TO PAVE THE WAY FOR THE TRIUMPHAL EMERGENCE OF HIS ALLY AND PARTY LEADER JACQUES CHIRAC THE MAYOR OF PARIS IN TIME FOR NEXT YEAR'S PRESIDENTIAL ELECTIONS INSTEAD MR. CHIRAC IS NOW BREATHING HEAVILY OVER MR. BALLADUR'S SHOULDER FRUSTRATED AND UNNERVED BY THE PRIME MINISTER'S POPULARITY SOME OF THE MOST BITING CRITICISM OF THE GOVERNMENT HAS COME FROM MR. BALLADUR'S PURPORTED FRIENDS TO COUNTER THE CRITICISM MR. BALLADUR IS REFUSING TO DISCUSS THE ISSUE OF THE PRESIDENCY THIS YEAR BUT AS HE REMINDED T. V. VIEWERS RECENTLY WHOEVER BECOMES THE CONSERVATIVE CANDIDATE FOR FRENCH PRESIDENT WILL NECESSARILY DEPEND ON THE RECORD OF THIS GOVERNMENT BRITISH AIRWAYS P. L. C. REPORTED THAT PRETAX PROFIT FOR ITS THIRD QUARTER ENDED DECEMBER THIRTY FIRST MORE THAN TRIPLED FROM A YEAR EARLIER TO SIXTY FIVE MILLION POUNDS NINETY SIX POINT SIX MILLION DOLLARS THE UNITED KINGDOM AIRLINE ATTRIBUTED THE PROFIT RISE TO IMPROVING U. S. AND BRITISH ECONOMIC CONDITIONS RECOVERING PREMIUM TRAFFIC AND THE COMPANY'S COST CUTTING PROGRAM IN THE YEAR EARLIER PERIOD BRITISH AIRWAYS REPORTED PRETAX PROFIT OF TWENTY MILLION POUNDS QUOTE ECONOMIC RECOVERY EVIDENT IN A NUMBER OF IMPORTANT MARKETS IS ENABLING BRITISH AIRWAYS TO CONTINUE TO MAINTAIN TRAFFIC GROWTH CONSISTENT WITH INCREASES IN CAPACITY AND AT ENCOURAGING LEVELS IN PREMIUM CLASSES QUOTE CHAIRMAN SIR COLIN MARSHALL SAID THE STRONG RESULT MET EXPECTATIONS BUT ANALYSTS POINTED OUT THAT THE YEAR EARLIER PRETAX PROFIT WAS HIT BY THE DEVALUATION OF STERLING A SHOCK THAT COST THE COMPANY MORE THAN FORTY MILLION IN PRETAX PROFIT AS A RESULT ANALYSTS SAID THAT THE AIRLINE'S PERFORMANCE IN THE RECENT THIRD QUARTER WAS ESSENTIALLY FLAT AT LEAST ONE ANALYST REVISED HIS FULL YEAR PROFIT FORECAST FOR THE AIRLINE DOWNWARD BUT MOST WERE STILL PREDICTING PRETAX PROFIT OF BETWEEN THREE HUNDRED MILLION AND THREE HUNDRED TWENTY FIVE MILLION FOR THE COMPANY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BRITISH AIRWAYS AMERICAN DEPOSITARY SHARES CLOSED AT SIXTY NINE DOLLARS AND SEVENTY FIVE CENTS EACH DOWN TWELVE POINT FIVE CENTS REVENUE PER PASSENGER OR YIELD EDGED UP ONE POINT THREE PERCENT ALTHOUGH THE MEASURE WAS TWO PERCENT LOWER IN LOCAL CURRENCY TERMS ALSO BRITISH AIRWAYS KEPT COST INCREASES TO JUST ELEVEN PERCENT WHILE SALES ROSE TWELVE PERCENT AS A RESULT OPERATING PROFIT ROSE THIRTY NINE PERCENT FROM A YEAR EARLIER TO NINETY SEVEN MILLION PASSENGER TRAFFIC ROSE ELEVEN PERCENT WITH GROWTH IN BUSINESS AND FIRST CLASS TRAFFIC MATCHING RISES IN ECONOMY CLASS DURING THE QUARTER HOWEVER THE AIRLINE ADDED ELEVEN PERCENT TO ITS CAPACITY CONSEQUENTLY PLANES FLEW SIXTY SEVEN PERCENT FULL IDENTICAL TO THE COMPARABLE PERIOD A YEAR EARLIER I HAVE A ONE HUNDRED THIRTY FIVE DOLLAR HAT A STETSON XXXX BEAVER SILVER BELLY QUOTE RANCHER QUOTE THERE'S A HOLE BURNED IN THE FRONT OF THE CROWN AND IF IT IS ANYBODY'S FAULT IT'S JOHN F. KENNEDY'S OUR THIRTY FIFTH PRESIDENT YOU MIGHT RECALL DIDN'T WEAR A HAT AFTER HIS INAUGURATION IN NINETEEN SIXTY ONE THEREUPON NINETY EIGHT PERCENT OF AMERICAN MEN TOOK THEIR CUE AND DOFFED THEIR HATS GIVING UP ONE OF THE MOST PRACTICAL ITEMS OF MALE ADORNMENT EVER TO COME DOWN THROUGH THE CENTURIES NO PRESIDENT SINCE THEN EXCEPT POSSIBLY LYNDON JOHNSON HAS WORN A HAT A HAT KEEPS THE SUN OUT OF THE EYES AND THE RAIN OFF THE SCALP THE STRAW HAT KEEPS THE HEAD COOL IN THE SUMMER AND THE FELT HAT KEEPS IT WARM IN THE WINTER IT CAN BE TIPPED IN RESPECT OR TOSSED IN THE AIR IN ECSTASY IN EMERGENCIES IT CAN BE USED TO FAN A SPARK INTO A FLAME OR LIFT A DRINK OF WATER OUT OF A STREAM FOR YOU OR YOUR HORSE NONE OF THESE ATTRIBUTES CAN BE CLAIMED BY BASEBALL CAPS MOTORCYCLE HELMETS OR THOSE LITTLE WOOL HEAD COVERINGS THAT CAN BE WADDED UP AND STUFFED IN A COAT POCKET AND THEREFORE DO NOT QUALIFY AS TRUE HATS THE KENNEDY INSPIRED WHOLESALE ABANDONMENT OF THE HAT THREE DECADES AGO HAS WROUGHT HARDSHIPS ON THOSE FEW OF US WHO HAVE PERSISTED IN WEARING A HAT TAKE THE PROBLEM OF GOING TO THE MOVIES BEFORE NINETEEN SIXTY ONE ALMOST EVERY THEATER DOWN TO THE LOCAL MOVIE HOUSE HAD A U. SHAPED WIRE RACK WELDED TO THE UNDERSIDE OF AT LEAST EVERY OTHER SEAT THE HAT WEARER SIMPLY TURNED HIS HAT UPSIDE DOWN AND SLIPPED IT INTO THE RACK SO THAT IT HUNG BY THE BRIM OUT OF MIND AND OUT OF THE WAY TODAY NOT A SINGLE SEAT IN ANY THEATER IN THESE UNITED STATES RETAINS SUCH A RACK OBVIOUSLY A HAT CANNOT BE WORN IN A THEATER WITHOUT RISKING PHYSICAL VIOLENCE FROM THOSE IN THE NEXT ROW BACK SO THE HAT HAS TO BE LAID ON THE ADJACENT SEAT AND THE OWNER MUST BE READY AT ANY MOMENT TO JERK IT OUT OF THE WAY SHOULD A LATECOMER WISH TO OCCUPY THAT SEAT THE HAT CAN BE LAID ON THE FLOOR UNDERNEATH THE SEAT BUT CHANCES ARE IT WILL BE STAINED BY PUDDLES OF SPILLED SODA AND SPRINKLINGS OF POPCORN OTHERWISE THE HAT OWNER MUST SIT THROUGH THE WHOLE EVENING HOLDING HIS LEGS CLOSE ENOUGH TOGETHER TO KEEP THE HAT FROM SLIPPING TO THE FLOOR EVEN THE LEGITIMATE THEATERS OF BROADWAY WHICH ONCE ACCOMMODATED ALL KINDS OF HATS INCLUDING SILK ONES HAVE REMOVED THE WIRE RACKS FROM THE SEATS CHECK THE HAT HA THEATERS RESTAURANTS AND NIGHTCLUBS USED TO HAVE HATCHECK GIRLS WHO KNEW EXACTLY HOW TO HANDLE A HAT DOWN TO BRUSHING IT OFF BEFORE RETURNING IT TO THE CUSTOMER NO SUCH EMPLOYEE EXISTS TODAY SOME THEATERS AND RESTAURANTS HAVE A RELIC CALLED A COAT CHECK PERSON BUT HAND ONE OF THESE PERSONS A HAT AND YOU'LL GET A LOOK OF PUZZLEMENT IN RETURN IT CAN'T BE PUT ON A COAT HANGER AFTER A MOMENT THE CHECKER'S WANDERING GAZE NOTICES A SHELF ABOVE THE COAT RACK AND ENLIGHTENMENT DAWNS SOME OLD TELEPHONE DIRECTORIES ARE PUSHED ASIDE AND THE HAT IS LAID ON THE SHELF BRIM DOWN NOW IN THE OLD DAYS IF THERE WERE NO HOOKS ON WHICH TO HANG HATS AN EXPERIENCED HATCHECK GIRL KNEW NEVER TO LAY A HAT ON ITS BRIM SINCE THIS WOULD RISK GETTING THE HIGHLY VISIBLE UNDERSIDE OF THE BRIM DIRTY SHE WOULD LAY IT UPSIDE DOWN SO THAT SHOULD THE SHELF BE DUSTY THERE WOULD BE ONLY A THIN BARELY NOTICEABLE LINE OF DUST AROUND THE TOP OF THE CROWN WHICH COULD BE QUICKLY BRUSHED OFF TO HAND A HAT TO A RESTAURANT COAT CHECKER TODAY RISKS INCURRING A TWENTY FIVE DOLLAR CLEANING BILL PROVIDED ONE CAN FIND A DRY CLEANER WHO CAN STILL CLEAN AND BLOCK A HAT THERE ARE ONLY THREE LEFT IN ALL OF MANHATTAN ANYONE WALKING INTO A CAFE OR A HONKYTONK IN THE SOUTHWEST THESE DAYS WILL SEE AN ACRE OF HATS BOBBING OVER A BOWL OF CHILI OR CIRCLING AROUND IN A TEXAS TWO STEP THIS ISN'T A FLOUTING OF THE ETIQUETTE OF THE OLD WEST JOHN WAYNE WOULD NEVER WEAR HIS HAT AT THE TABLE OR WHILE DANCING WITH THE SCHOOL MARM IT'S JUST THAT THESE ERSTWHILE COWPOKES HAVE NO PLACE TO HANG THEIR HATS EXCEPT ON THEIR HEADS EVEN IN TEXAS AND THEREIN LIES THE EXPLANATION FOR THE HOLE BURNED IN MY STETSON XXXX SILVER BELLY THIS HAT IF YOU'RE WONDERING IS A KIND OF MODERN HIGHER CROWN VERSION OF THE HAT GARY COOPER WORE IN HIGH NOON EXCEPT IT'S A SILVER BELLY GRAY INSTEAD OF THE BLACK THAT COOPER WORE EVEN THOUGH HE WAS THE GOOD GUY EACH WEDNESDAY MY FRIEND BEN PATRUSKY AND I HAVE LUNCH IN A LOWER MANHATTAN SALOON IT HAS THE COMFORTABLE FEEL OF ONE OF THOSE OLD NEW YORK BARS LEFT OVER FROM THE LAST CENTURY AND THE FOOD IS EXCELLENT AND INEXPENSIVE BUT UNLIKE THE SALOONS OF THE LAST CENTURY THERE IS NO PLACE TO PUT A HAT THERE IS NO COAT CHECK PERSON MUCH LESS A HATCHECK GIRL AND THE HOOKS ON THE WALL ON WHICH CUSTOMERS HANG THEIR COATS ARE TOO SHORT TO HOLD A TRUE HAT THERE IS HOWEVER A LITTLE NOTICED CLOSET WHERE THE WAITRESSES HANG THEIR COATS IT REMAINS SHUT UNTIL EARLY EVENING WHEN THE SHIFT CHANGES THE HOOKS THEREIN ALSO ARE TOO SHORT TO TAKE A HAT BUT THERE IS A RARELY USED BALD LIGHT BULB THAT STICKS OUT PERPENDICULAR TO THE WALL THE BULB ACCOMMODATES A STETSON XXXX BEAVER SILVER BELLY RANCHER PERFECTLY AND HAD DONE SO EVERY WEDNESDAY FOR MORE THAN THREE YEARS UNTIL THE OTHER DAY DURING THE LUNCH HOUR SOMEONE WHO OBVIOUSLY WAS BORN AFTER NINETEEN SIXTY ONE AND THOUGHT MY HAT WAS SOME KIND OF NEW LAMPSHADE TURNED THE BULB ON AND LEFT IT ON I'M THINKING ABOUT SENDING THE BILL FOR A NEW HAT TO TEDDY KENNEDY MR. BISHOP COVERS SCIENCE TECHNOLOGY AND MEDICINE FOR THE JOURNAL A NEW STUDY SUPPORTS THE NOTION THAT A QUOTE WAIT AND SEE QUOTE STRATEGY IS AS VALID AS SURGERY OR RADIATION FOR TREATMENT OF EARLY STAGE PROSTATE CANCER THE REPORT IS THE LATEST EFFORT TO ADDRESS A GROWING DILEMMA IN THE MANAGEMENT OF THE DISEASE WHICH IS EXPECTED TO KILL THIRTY EIGHT THOUSAND U. S. MEN THIS YEAR A NEW DIAGNOSTIC TEST AND AGGRESSIVE SCREENING CAMPAIGNS ARE HELPING TO INCREASE EARLY DETECTION AND TREATMENT OF PROSTATE CANCER BUT THERE IS LITTLE STATISTICAL EVIDENCE THAT SUCH EFFORTS PROLONG SURVIVAL SINCE AGGRESSIVE TREATMENTS ESPECIALLY SURGICAL REMOVAL OF THE PROSTATE ARE COSTLY AND CARRY SIGNIFICANT RISKS AND SINCE DOCTORS CAN'T PREDICT RELIABLY WHICH PATIENTS ARE LIKELY TO BENEFIT FROM SURGERY OR WHICH COULD BE HARMED BY A CONSERVATIVE WATCHFUL WAITING APPROACH UROLOGISTS ARE EMBROILED IN CONTROVERSY OVER THE BEST STRATEGIES FOR TREATING EARLY STAGE DISEASE THE MESSAGE OF OUR STUDY IS THAT WATCHFUL WAITING IS A REASONABLE ALTERNATIVE TO SURGERY AND RADIATION SAID GERALD W. CHODAK PROFESSOR OF SURGERY AT THE UNIVERSITY OF CHICAGO AND DIRECTOR OF THE PROSTATE AND UROLOGY CENTER AT WEISS MEMORIAL HOSPITAL IN CHICAGO BUT HE WARNED THAT DOCTORS AND PATIENTS SHOULDN'T READ THE FINDINGS AS A BROAD RECOMMENDATION AGAINST AGGRESSIVE TREATMENT DECIDING WHAT IS THE BEST APPROACH DEPENDS TO A GREAT EXTENT ON THE PREFERENCES OF THE INDIVIDUAL PATIENT DOCTOR CHODAK SAID THIS IS ABOUT TRADE OFFS DOCTOR CHODAK IS LEAD AUTHOR OF THE REPORT WHICH APPEARS IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE BUT THE REPORT DREW SHARP CRITICISM FROM WILLIAM CATALONA CHIEF OF UROLOGY AT WASHINGTON UNIVERSITY MEDICAL SCHOOL SAINT LOUIS WHOSE RESEARCH HAS LED TO WIDESPREAD USE OF A BLOOD TEST KNOWN AS THE P. S. A. TEST TO DETECT PROSTATE CANCER IN ITS EARLY STAGES THESE RESEARCHERS ARE PRESENTING A TERRIBLE PICTURE OF ACTIVE TREATMENT AND A ROSY PICTURE OF WATCHFUL WAITING AND THEY'RE MISLEADING THE PUBLIC DOCTOR CATALONA DECLARED AS A RESULT OF THE P. S. A. TEST MORE THAN TWO HUNDRED THOUSAND U. S. MEN ARE EXPECTED TO BE DIAGNOSED WITH PROSTATE CANCER THIS YEAR MANY OF THEM WHEN THE DISEASE IS CONFINED TO THE PROSTATE AND CONSIDERED TREATABLE QUOTE THESE MEN WILL HAVE A BRIEF WINDOW OF OPPORTUNITY TO GET CURED QUOTE THROUGH SURGERY HE SAID IF THEY GET CURED THEY'RE CLEAN FOR THE REST OF THEIR LIVES HE ALSO MAINTAINED THAT THE SUBJECTS IN THE STUDY WERE DOMINATED BY OLDER MEN WITH LOW GRADE TUMORS THE KIND OF MEN FOR WHOM WATCHFUL WAITING IS ALREADY OFTEN RECOMMENDED THEY AREN'T REPRESENTATIVE OF A CHANGING POPULATION OF PATIENTS WITH PROSTATE CANCER HE SAID THE STUDY IS BASED ON AN ANALYSIS OF SIX OTHER REPORTS INVOLVING EIGHT HUNDRED TWENTY EIGHT MEN FROM ISRAEL SCOTLAND SWEDEN AND THE U. S. ALL WERE BELIEVED TO HAVE CANCER CONFINED TO THE PROSTATE GLAND AND NONE WERE TREATED INITIALLY THOUGH MANY WERE GIVEN HORMONE TREATMENTS LATER IN THE COURSE OF THEIR DISEASE DOCTOR CHODAK AND HIS COLLEAGUES FOUND THAT EIGHTY SEVEN PERCENT OF THOSE CONSIDERED TO HAVE EITHER GRADE ONE OR GRADE TWO TUMORS CONSIDERED LESS AGGRESSIVE WHEN THEY WERE DIAGNOSED WERE STILL ALIVE TEN YEARS LATER JUST THIRTY FOUR PERCENT OF MEN WITH GRADE THREE TUMORS SURVIVED WITH THE DISEASE FOR TEN YEARS THE FIGURES DON'T INCLUDE MEN WHO DIED OF OTHER CAUSES DOCTOR CHODAK SAID SOME OTHER STUDIES INDICATE THAT TEN YEAR SURVIVAL RATES FOR SURGERY AND RADIATION ARE ABOUT NINETY FOUR PERCENT BUT JOSEPH E. OESTERLING A UROLOGIST AT THE MAYO CLINIC ROCHESTER MINNESOTA SAID THAT A VALID COMPARISON WITH THE RESULTS OF DOCTOR CHODAK'S STUDY ISN'T POSSIBLE BECAUSE OF DIFFERENCES IN STUDY METHODS AND GROUPS OF PATIENTS A STUDY PUBLISHED LAST YEAR SHOWED THAT SURGICAL REMOVAL OF THE PROSTATE AS A CANCER TREATMENT INCREASED SIXFOLD BETWEEN NINETEEN EIGHTY FOUR AND NINETEEN NINETY PROVOKING CONCERN THAT MANY PATIENTS WERE RISKING SUCH COMPLICATIONS AS IMPOTENCE AND INCONTINENCE WITH LIMITED EVIDENCE OF BENEFIT DOCTOR OESTERLING SAID INCREASED USE OF THE PROCEDURE KNOWN AS RADICAL PROSTATECTOMY PARTLY REFLECTS NEW SURGICAL TECHNIQUES THAT CAN REDUCE CHANCES OF COMPLICATIONS HE SAID THE NEW STUDY PROVIDES MORE EVIDENCE TO SUPPORT CONSERVATIVE APPROACHES FOR OLDER MEN OR THOSE WITH OTHER DEBILITATING ILLNESSES FOR PEOPLE THAT HAVE LESS THAN TEN YEARS TO LIVE WATCHFUL WAITING COULD GIVE YOU RESULTS SIMILAR TO WHAT YOU WOULD GET WITH RADIATION OR SURGERY DOCTOR OESTERLING SAID BUT DOCTOR CHODAK MAINTAINED THAT FEW UROLOGISTS FEEL COMFORTABLE RECOMMENDING WATCHFUL WAITING EVEN IN SUCH CASES BECAUSE PREVIOUS STUDIES HAVE BEEN FLAWED AND BECAUSE THERE AREN'T ANY RELIABLE DATA COMPARING THE RESULTS OF SURGERY RADIATION AND WATCHFUL WAITING HEAD TO HEAD AMONG PATIENTS WITH SIMILAR LEVELS OF DISEASE HE ARGUED THAT THE STUDY SHOULD GIVE DOCTORS CONFIDENCE THAT SIMPLY MONITORING THE COURSE OF DISEASE IS A VALID APPROACH FOR MANY PATIENTS THE REPORT ALSO FOUND THAT CANCER HAD SPREAD BEYOND THE PROSTATE GLAND AFTER TEN YEARS IN NINETEEN PERCENT OF PATIENTS DIAGNOSED WITH A GRADE ONE TUMOR AND FORTY TWO PERCENT OF THOSE WITH A GRADE TWO TUMOR THOSE RESULTS CLEARLY DEMONSTRATE THAT PROSTATE CANCER IS A PROGRESSIVE DISEASE WHEN MANAGED CONSERVATIVELY THE RESEARCHERS WROTE DOCTOR CHODAK SAID BOTH PATIENTS AND THEIR DOCTORS CAN WEIGH SUCH CHANCES IN CONSIDERING A CHOICE OF TREATMENT WE CAN'T PREDICT FOR SURE WHO WILL DO WELL WITH WATCHFUL WAITING AND WHO WILL DO POORLY HE SAID EACH INDIVIDUAL HAS A DILEMMA WHAT IS HE WILLING TO RISK IN ORDER TO GAIN A BENEFIT WHILE THE FINDINGS DON'T POINT CLEARLY TO ONE OPTION OR ANOTHER HE ADDED THEY QUOTE WILL MAKE IT EASIER TO COUNSEL PATIENTS ABOUT WHAT HAPPENS TO THOSE WHO CHOOSE WATCHFUL WAITING QUOTE HE CALLS HER QUOTE MIRIAM QUOTE SHE CALLS HIM MY GENERAL SHE'S A WEALTHY NEW YORKER WHOSE FORMER FIFTH AVENUE OBJETS D'ART BOUTIQUES BLOSSOMED INTO BURMESE BUSINESS DEALS HE'S A DEVOUT BUDDHIST WHOSE JET FLYING LESSONS AT NEVADA'S NELLIS AIR FORCE BASE EVENTUALLY PROPELLED HIM TO NUMBER TWO IN BURMA'S AIR FORCE AND THEN INTO THE UNLIKELY JOB OF MINISTER OF LIVESTOCK BREEDING AND FISHERIES THEIR LIAISON HAS ALL THE MAKINGS OF A CONVOLUTED BURMESE CINEMA CLASSIC EXCEPT ONE WHAT BRINGS MIRIAM MARSHALL SEGAL AND BRIGADEER GENERAL MAUNG MAUNG TOGETHER ISN'T LOVE IT'S SHRIMP A TINY JOINT VENTURE PROCESSING THEM FOR EXPORT THE SETTING IS A LUSH TEXAS SIZED NATION OF FORTY TWO MILLION PEOPLE THAT WAS SEALED OFF FROM THE MODERN WORLD FOR NEARLY THREE DECADES WRACKED BY SPUTTERING CIVIL WARS FOUGHT BY COMMUNIST INSURGENTS AND SECESSIONIST HILL TRIBES MISRULED SINCE NINETEEN SIXTY TWO BY A MILITARY DICTATOR AND ECONOMICALLY RUINED BY HIS SO CALLED BURMESE WAY OF SOCIALISM ONCE THE WORLD'S BIGGEST RICE EXPORTER BURMA SANK INTO NEAR BANKRUPTCY A RESOURCE RICH BUT UNDEVELOPED SOUTHEAST ASIAN AFTERTHOUGHT WHERE TIME STOOD STILL WATER BUFFALO STILL PLOW FIELDS AND ELEPHANTS HAUL LOGS RANGOON A COMMERCIAL AND SOCIAL MECCA WHEN SINGAPORE AND BANGKOK WERE MALARIAL SWAMPS AND OPIUM DENS SANK INTO MOLDY DECAY NOW LIKE CHINA AND VIETNAM BURMA HAS BEGUN TO OPEN UP AND STIR MARKET ORIENTED REFORMS HAVE BEGUN TO MOVE A MORIBUND ECONOMY SPROUT PRIVATE BURMESE ENTREPRENEURS AND LURE FOREIGN INVESTORS AND BURMESE EXPATRIATES THE U. S. EMBASSY CALLED LAST YEAR'S REPORTED TEN POINT NINE PERCENT GROWTH IN GROSS DOMESTIC PRODUCT A STUNNING RECOVERY FROM YEARS OF SLOW OR NEGATIVE GROWTH AUTHORITIES HAVE STRUCK CEASE FIRE DEALS WITH NINE OF ELEVEN MAJOR ETHNIC INSURGENT GROUPS IT HAS BEEN FIGHTING SINCE THE END OF WORLD WAR TWO THEREBY OPENING ASIA'S LAST FRONTIER WILDERNESS AREA FOR DEVELOPMENT REGIONAL INVESTORS AND GOVERNMENTS ARE ACTIVELY PLANNING A GOLDEN RECTANGLE OF ECONOMIC BOOM WHERE BURMA CHINA LAOS AND THAILAND COME TOGETHER AN AREA LONG KNOWN AS THE OPIUM GROWING GOLDEN TRIANGLE A HUGE THAI FINANCED CASINO IS UNDER CONSTRUCTION THERE NOW THERE'S ONLY ONE PROBLEM HERE BURMA IS RULED BY ONE OF THE WORLD'S MOST LOATHED MILITARY JUNTAS A GROUP OF TWENTY TWO GENERALS WHO SEIZED POWER IN NINETEEN EIGHTY EIGHT UNDER THE BANNER OF THE STATE LAW AND ORDER RESTORATION COUNCIL OR SLORC AND PROCEEDED TO MOW DOWN HUNDREDS OF UNARMED STUDENTS AND OTHER PRO DEMOCRACY DEMONSTRATORS IMPRISON THOUSANDS MORE AND SEND TENS OF THOUSANDS FLEEING INTO EXILE WHICH BRINGS US BACK TO OUR MAIN CHARACTERS GENERAL MAUNG MAUNG A GENTLE MAN WITH A READY SMILE ISN'T A MEMBER OF SLORC BUT AS A CABINET MINISTER HE WORKS FOR SLORC WHICH IS DESPERATE TO EARN HARD CURRENCY SEAFOOD EXPORTS HE SAYS COULD QUICKLY BECOME THE COUNTRY'S BIGGEST HARD CURRENCY EARNER MEANWHILE HIS PARTNER MRS. SEGAL HAS BECOME SLORC'S MOST PASSIONATE AMERICAN DEFENDER EVEN THOUGH SHE DESCRIBES HERSELF AS NOT A POLITICAL PERSON AT ALL SHE HAS ALSO BECOME ONE OF THE MOST VISIBLE AMERICAN INVESTORS IN BURMA WHILE OTHERS FILE SHAREHOLDER RESOLUTIONS CALLING FOR CORPORATE WITHDRAWAL FROM BURMA OF ITS BIGGEST AMERICAN INVESTORS INCLUDING TEXACO INCORPORATED UNOCAL CORPORATION AND AMOCO CORPORATION MRS. SEGAL IS RUNNING A ONE WOMAN CRUSADE TO GET AMERICANS MORE INVOLVED SHE HAS TESTIFIED BEFORE CONGRESS ON SLORC'S BEHALF FETED BURMESE GOVERNMENT DELEGATIONS AT HER CENTRAL PARK WEST APARTMENT IN MANHATTAN BUTTONHOLED POLITICIANS PENNED POSITION PAPERS AND LETTERS TO EDITORS AND BENT TELEPHONE EARS ARGUING THAT SLORC IS THE MUCHMALIGNED VICTIM OF BAD DIPLOMACY AND BIASED JOURNALISM SHE WANTS THE U. S. TO GRANT BURMA MOST FAVORED NATION TRADING STATUS AND ADOPT THE KIND OF QUOTE CONSTRUCTIVE ENGAGEMENT QUOTE THAT SINGAPORE THAILAND AND CHINA HAVE FOLLOWED TROUBLE IS THIS IS THE SAME SLORC THAT PRESIDENT CLINTON ACCUSED IN MAY OF CREATING A TRAGIC HUMAN RIGHTS SITUATION HE ORDERED A POLICY REVIEW WITH A VIEW TOWARD IMPOSING ECONOMIC OR OTHER SANCTIONS SLORC SAYS REPRESENTATIVE JIM LEACH A REPUBLICAN FROM INDIANA IS AS ODIOUS AS ITS NAME SOUNDS REPUBLICAN REPRESENTATIVE DANA ROHRABACHER OF CALIFORNIA SAYS IT DESERVES GANGSTER STATUS AND THE LAST U. S. AMBASSADOR TO BURMA BURTON LEVIN CALLS SLORC A COLLECTION OF THUGS AND DOPES THE U. S. AND OTHER GOVERNMENTS EXCORIATE SLORC FOR CONTINUING HUMAN RIGHTS ABUSES AND EMBARGO FOREIGN AID HUMAN RIGHTS WATCH CALLS IT A HUMAN RIGHTS PARIAH NOTING THAT IT HAS KEPT AUNG SAN SUU KYI A NOBEL PEACE PRIZE WINNING POLITICAL OPPONENT UNDER HOUSE ARREST FOR FOUR AND ONE HALF YEARS SLORC SAYS SHE'S FREE TO LEAVE THE COUNTRY ANYTIME CRITICS OF SLORC DISMISS THE FIFTY THREE YEAR OLD MRS. SEGAL AS A MISLED MANHATTAN BAUBLEHEAD WHO IS EITHER BEING USED BY A CYNICAL REGIME OR IS A CYNIC HERSELF WHO IS COYLY EMBRACING SLORC TO MAKE MONEY SHE CALLS HERSELF AN ALTRUISTIC MONEYMAKER INTERESTED IN BOTH PROFITING AND HELPING LAST JUNE SHE SET UP A ONE HUNDRED THOUSAND DOLLAR SCHOLARSHIP FUND FOR BURMESE STUDENTS AT BROWN UNIVERSITY MEANWHILE THE COMPANY SHE HEADS MMAI HOLDINGS LIMITED HAS INVESTED MORE THAN FOUR MILLION DOLLARS IN BURMESE VENTURES INCLUDING THE SHRIMP PLANT A FISHING VENTURE AND A CEMENT BAGGING FACILITY THE FIRM REGISTERED IN THE BRITISH WEST INDIES INCLUDES AS A PARTNER THE PEREGRINE MERCHANT BANKING GROUP OF HONG KONG AND TEN FRIENDS OF MRS. SEGAL IT IS ALSO NEGOTIATING HOTEL TIMBER DUTY FREE CELLULAR PHONE AIRCRAFT REPAIR EXPATRIATE HOUSING CONSTRUCTION CAR DEALERSHIP AND PHARMACEUTICAL IMPORT VENTURES SHE SAYS SHE ALSO HOPES TO SET UP A CONSULTING COMPANY TO HELP OTHER FOREIGNERS INVEST QUOTE DON'T SELL HER SHORT QUOTE SAYS GERALDINE STUTZ FORMER PRESIDENT OF HENRI BENDEL THE NEW YORK FASHION STORE IN WHICH MRS. SEGAL OPENED THE SUCCESSFUL QUOTE PORTS OF CALL QUOTE BOUTIQUE IN THE MID NINETEEN SIXTIES ANOTHER FRIEND STANLEY MARCUS OF NEIMAN MARCUS SAYS HOWEVER SHE'S SMART AS THE DEVIL ON MATTERS OF FASHION AND TASTE BUT I WOULDN'T APPOINT HER SECRETARY OF STATE NEVERTHELESS MRS. SEGAL ARGUES THAT THE U. S. PUNISHES SLORC BY WITHHOLDING AN AMBASSADOR DENYING AID AND TRYING TO ISOLATE THE REGIME BUT NOT THE MASTERMINDS OF CHINA'S TIANANMEN SQUARE MASSACRE IF THE U. S. THINKS DIPLOMATIC AND ECONOMIC ENGAGEMENT IN CHINA WILL HELP THE CAUSES OF DEMOCRACY AND HUMAN RIGHTS WHY NOT IN BURMA TOO SHE ASKS UNLIKE WITH VIETNAM THE U. S. HASN'T IMPOSED A TRADE EMBARGO ON BURMA MRS. SEGAL WHO BEGAN IMPORTING BURMESE HANDICRAFTS IN NINETEEN SEVENTY EIGHT SAYS SHE DIDN'T START DOING BATTLE FOR THEM UNTIL NINETEEN NINETY ONE WHEN SHE BEGAN TO SEE POSITIVE CHANGES AND BECAME CONVINCED THAT THE NEW GENERATION OF GENERALS RUNNING SLORC WAS SINCERE WITHOUT FOREIGN AID SHE SAYS THEY HAVE DONE MORE TO OPEN UP AND IMPROVE BURMA IN THE PAST THREE YEARS THAN THEIR PREDECESSORS DID IN THE PREVIOUS THIRTY SHE HAS A POINT THEIR PREDECESSOR AND MENTOR GENERAL NE WIN SEIZED POWER IN NINETEEN SIXTY TWO AND LAUNCHED THE DISASTROUS BURMESE WAY OF SOCIALISM AND OTHER POLICIES WITH WHAT HISTORIANS CALL EXTRAORDINARY INEPTITUDE NOT TO MENTION KEEN ATTENTION TO HIS ASTROLOGER NE WIN'S NINETEEN EIGHTY SEVEN DEMONETIZATION OF LARGE BANKNOTES WHICH WIPED OUT THE SAVINGS OF MANY THERETOFORE NONPOLITICAL BURMESE TRIGGERED THE NINETEEN EIGHTY EIGHT PRO DEMOCRACY DEMONSTRATIONS HIS RETIREMENT SLORC'S TAKEOVER AND ITS CRACKDOWN COMPARED TO NE WIN THE MEN OF SLORC COME ON LIKE PROGRESSIVE REFORMERS HOWEVER SLORC BESMIRCHED ITSELF NOT ONLY BY ITS BRUTAL NINETEEN EIGHTY EIGHT CRACKDOWN LIKE CHINA IT ARGUED THE NATION WAS HEADED FOR CHAOS AND ANARCHY BUT ALSO FOR ITS HANDLING OF ELECTIONS IN NINETEEN NINETY SLORC'S PARTY GOT TROUNCED BY A PRO DEMOCRACY COALITION INSTEAD OF STEPPING DOWN SLORC VOIDED THE VOTE DECLARING IT WOULD CONTINUE RULING BY DECREE UNTIL A NEW CONSTITUTION WAS DRAFTED BY A SLORC CONTROLLED CONVENTION AT WHICH CRITICISM OF THE GOVERNMENT IS OFFICIALLY OUTLAWED INDEED IN OCTOBER A CONVENTION DELEGATE AND TEN OF HIS NONDELEGATE SUPPORTERS WERE SENTENCED TO TWENTY YEARS IN PRISON FOR DISTRIBUTING SUPPOSEDLY SUBVERSIVE LEAFLETS AMONG OTHER DELEGATES SLORC SAYS THEY WERE THREATS MRS. SEGAL WHO WASN'T IN BURMA DURING EITHER THE NINETEEN EIGHTY EIGHT CRACKDOWN OR THE NINETEEN NINETY ELECTION DOESN'T DEEM SLORC FAULTLESS UNFORTUNATELY ONE OUTDATED PICTURE ONE STILL SHOT FROZEN IN TIME SEEMS TO RIVET EVERYONE'S ATTENTION SHE WRITES WHILE SLORC'S POSITIVE STEPS SINCE THEN GO UNHEEDED SOME DIPLOMATS IN RANGOON AGREE AND HAVE BEGUN TO MUTE PREVIOUSLY HARSH CRITICISM THESE PEOPLE AREN'T SYRIA NORTH KOREA OR IRAQ SAYS ONE QUOTE IT'S MORE PINOCHET THAN POL POT QUOTE SAYS ANOTHER OTHERS EVEN PRAISE SLORC'S ENERGY AND HARD WORK ITS REPORTED RELEASE OF MORE THAN TWO THOUSAND POLITICAL PRISONERS ITS EFFORTS AT NARCOTICS SUPPRESSION BURMA IS THE WORLD'S BIGGEST OPIUM PRODUCER EVEN ITS ENLIGHTENED POLICIES IN PRESERVING ITS TEAK FORESTS BURMA HAS ABOUT SEVENTY FIVE PERCENT OF THE WORLD'S TEAK RESERVES SLORC'S LEAST BELIEVED ASSERTION IS THAT IT WILL RESTORE DEMOCRACY ALBEIT WITH THE MILITARY PLAYING A LEADING ROLE IN FUTURE GOVERNMENTS THE OBVIOUS MODEL IS INDONESIA INDEED SLORC'S POWERFUL FIRST SECRETARY THE FIFTY FIVE YEAR OLD LIEUTENANT GENERAL KHIN NYUNT LED A FIVE MAN DELEGATION TO INDONESIA JUST BEFORE CHRISTMAS AND AFTER A MEETING WITH PRESIDENT SUHARTO A FORMER REVOLUTIONARY GENERAL HIMSELF CALLED INDONESIA A MODEL OF STABILITY FOR BURMA ACTUALLY BURMA TODAY MORE RESEMBLES INDONESIA TWENTY FIVE YEARS AGO WHEN SUHARTO AND HIS FELLOW GENERALS BROOKED NO OPPOSITION IN THE WAKE OF A BLOODBATH AGAINST SUSPECTED COMMUNISTS THAT LEFT HUNDREDS OF THOUSANDS DEAD AND TENS OF THOUSANDS MORE IN PRISON INDONESIA'S RULERS IN THOSE DAYS HOWEVER HAD TWO THINGS GOING FOR THEM THAT SLORC DOESN'T FIRST THE COLD WAR ALLOWED WESTERN AID TO POUR IN WITH ONLY TOKEN ATTENTION TO HUMAN RIGHTS SECOND INDONESIA HAD A TEAM OF ENLIGHTENED ECONOMIC PLANNERS EDUCATED IN THE WEST AND DEDICATED TO SUHARTO'S COMMITMENT TO NATIONAL DEVELOPMENT NO SUCH COMPETENCE APPEARS TO EXIST IN BURMA FEEDING CRITICS WHO CONTEND THE ANNOUNCED POLICIES ARE MERE WINDOW DRESSING MEANWHILE SLORC TOLERATES NO POLITICAL DISSENSION THEY'VE RELEASED SOME POLITICAL PRISONERS BUT ONLY THE PEOPLE THEY DON'T FEAR SAYS A DIPLOMAT ORGANIZED OPPOSITION HAS BEEN DECIMATED AT LEAST TWENTY SEVEN OPPOSITION POLITICIANS ELECTED IN NINETEEN NINETY REMAIN IN PRISON DIPLOMATS AND BURMESE IN RANGOON SAY SLORC FEARS SOME SORT OF SPONTANEOUS UPRISING AND THEREFORE RULES THROUGH INTIMIDATION ITS NETWORK OF INFORMANTS REPORTING TO THE MILITARY'S VAST INTELLIGENCE APPARATUS WHILE OFFICIALS SAY BURMESE CAN TALK FREELY SEVERAL SLORC OPPONENTS DECLINED TO SPEAK TO OR EVEN BE SEEN WITH A VISITING REPORTER SAYING THROUGH FAMILY MEMBERS OR FRIENDS THAT THEY FEARED REPRISALS THOSE WILLING TO TALK DID SO AT MEETINGS AT OTHER PEOPLES' HOUSES OR OFFICES MUCH THE SAME WAY DISSIDENTS MET JOURNALISTS IN BEIJING SEOUL TAIPEI JAKARTA AND SINGAPORE IN THE PAST ALL THOSE PLACES HOWEVER MANAGED TO BLUNT HUMAN RIGHTS CRITICISM WITH STEADY IMPROVEMENTS IN LIVING STANDARDS ECONOMIC RESULTS IN BURMA CONTINUE TO BE MOSTLY THEORETICAL FOR ALL BUT A TINY CLASS OF BUDDING ENTREPRENEURS WHEN SLORC ABANDONED SOCIALISM AND OPENED THE COUNTRY TO FOREIGN INVESTORS IN NINETEEN EIGHTY EIGHT INVESTORS WERE SLOW TO ARRIVE THIS WAS POSSIBLY BECAUSE IN A MOVE OF EXTRAORDINARY INEPTITUDE SLORC RENAMED THE COUNTRY MYANMAR BURMA WAS THE NAME BRITISH COLONIALISTS CHOSE THEREBY LOWERING ITS PROFILE CONSIDERABLY NEVERTHELESS SLORC SAYS NEARLY TWO BILLION DOLLARS IN INVESTMENTS MOST OF THEM IN OIL AND GAS PROJECTS AND TOURIST HOTELS HAS BEEN PLEDGED MUCH OF IT IN THE PAST TWO YEARS THE GOVERNMENT SAYS IT WANTS TO BUILD A SKI RESORT IN THE BURMESE HIMALAYAS THUS FAR SLORC HAS CONCENTRATED ITS EFFORTS ON UNIFYING A NATION THAT BRITISH COLONIALISTS IN NINETEEN FORTY EIGHT LEFT DEEPLY DIVIDED INTO ETHNIC ENCLAVES STARTING WITH THE WA GROUP WHICH TURNED AGAINST ITS BURMESE COMMUNIST PARTY OVERLORDS IN NINETEEN EIGHTY NINE SLORC HAS OFFERED LIMITED REGIONAL AUTONOMY AND DEVELOPMENT AID IN EXCHANGE FOR PEACE THE POWERFUL KACHINS ARE THE LATEST TO MAKE A DEAL THE TWO HOLDOUTS THE KARENS AND MONS ARE WAVERING IN RANGOON OVER THE CHRISTMAS HOLIDAYS MEANWHILE MRS. SEGAL HAS BEEN BUSILY PURSUING HER BUSINESS INTERESTS IN HER YEARS OF BUYING BURMESE HANDICRAFTS SHE GOT TO KNOW MANY OF THE MEN WHO NOW RUN THE COUNTRY IN NINETEEN NINETY WITH SLORC EAGER TO DEMONSTRATE ITS OPENNESS TO FOREIGN INVESTORS BUT OUTSIDERS STILL LEERY MRS. SEGAL SIGNED A JOINT VENTURE WITH GENERAL MAUNG MAUNG'S FISHERIES MINISTRY FOR EXCLUSIVE FISHING RIGHTS TO SOME FOUR HUNDRED THOUSAND SQUARE MILES OF DEEP WATER OFFSHORE TERRITORY THE COMPANY NAMED THE MYANMAR AMERICAN FISHERIES COMPANY MAFCO SUBSEQUENTLY SUBLET THE RIGHTS TO A CHINESE TRAWLING COMPANY BASED IN SPAIN WANG KAI DI CHINA'S ECONOMIC AND COMMERCIAL ATTACHE IN RANGOON SAYS HE HELPED PERSUADE THE CHINESE COMPANY TO JOIN MAFCO BECAUSE AROUND RANGOON MRS. SEGAL HAD A LOT OF GANXI THE CHINESE WORD FOR CONNECTIONS AND PULL THE CHINESE BEGAN FISHING IN OCTOBER MRS. SEGAL'S SIXTEEN PAGE PRESS KIT WHICH SHE PROFFERS IN LIEU OF A RESUME INCLUDES PHOTOS AND NEWSPAPER CLIPS OF HER MEETINGS WITH TOP BURMESE OFFICIALS INCLUDING GENERAL KHIN NYUNT AND U. KO LAY RANGOON'S MAYOR THE BIOGRAPHICAL SECTION DESCRIBES HER AS BEING QUOTE AN ACCOMPLISHED PERSON WHO RODE AT THE FRONTIERS OF AND EXEMPLIFIED THE TRENDS OF HER TIMES QUOTE THE MONTREAL GAZETTE IS QUOTED AS ATTRIBUTING HER BUSINESS SUCCESS TO HER ABILITY TO ADAPT MYSTERIOUS EASTERN OBJECTS TO THE WAY OF LIFE OF UPPER CRUST NORTH AMERICANS GENERAL MAUNG MAUNG MET SOME OF THE LATTER IN A VISIT TO THE U. S. IN APRIL THAT MRS. SEGAL ARRANGED THE FIRST BY A BURMESE OF CABINET RANK IN THIRTY THREE YEARS SHE HAS ALSO DEVELOPED AN ABILITY TO EXPLAIN EASTERN WAYS WHEN AN ASIAN MAGAZINE PUBLISHED PHOTOS RECENTLY OF BURMESE CHAIN GANGS BUILDING ROADS SHE TELEPHONED A REPORTER FROM HONG KONG TO SAY THOSE ARE MURDERERS AND DRUG ADDICTS NOT POLITICAL PRISONERS DOCTOR PEPPER SLASH SEVEN UP COMPANIES SAID IT HAS PURCHASED SEVENTY THREE THOUSAND FOUR HUNDRED TWO OR ABOUT FIFTEEN PERCENT OF ITS ELEVEN AND ONE HALF PERCENT SENIOR SUBORDINATED DISCOUNT NOTES DUE IN TWO THOUSAND TWO THE PURCHASES MADE ON THE OPEN MARKET FOR ABOUT FORTY EIGHT POINT FIVE MILLION DOLLARS WERE PART OF A PLAN TO CONSOLIDATE AND SIMPLIFY ITS CAPITAL STRUCTURE THE SOFT DRINK MAKER SAID THEY WERE FUNDED BY THE COMPANY'S BANK CREDIT AGREEMENT THE COMPANY SAID THREE HUNDRED EIGHTY EIGHT THOUSAND EIGHT HUNDRED TWENTY NINE DISCOUNT NOTES ARE STILL OUTSTANDING THE OFFICIAL SWEDISH UNEMPLOYMENT RATE INCREASED TO EIGHT POINT EIGHT PERCENT OF THE WORK FORCE IN JANUARY FROM EIGHT PERCENT IN DECEMBER AND FROM SEVEN POINT FIVE PERCENT IN JANUARY NINETEEN NINETY THREE ACCORDING TO SCB THE NATIONAL STATISTICS AGENCY THE THREE MAIN CORPORATE DEFENDANTS IN BREAST IMPLANT LITIGATION DISCLOSED HOW THEY WILL DIVIDE UP LIABILITY IN A PROPOSED FOUR BILLION DOLLAR SETTLEMENT WITH DOW CORNING CORPORATION AGREEING TO FUND ABOUT HALF OF THE AMOUNT DOW CORNING THE LEADING U. S. MAKER OF SILICONE BREAST IMPLANTS SAID IT AGREED TO PAY ABOUT TWO BILLION DOLLARS OVER THIRTY YEARS AS ITS SHARE OF THE SETTLEMENT AGREEMENT DOW CORNING IS A MIDLAND MICHIGAN JOINT VENTURE OF DOW CHEMICAL COMPANY AND CORNING INCORPORATED IT WAS PREVIOUSLY REPORTED THAT DOW CORNING BRISTOL MYERS SQUIBB COMPANY BAXTER INTERNATIONAL INCORPORATED AND SEVERAL SMALLER PLAYERS REACHED AGREEMENT OVER THE WEEKEND ON THE DETAILS OF FUNDING THE SETTLEMENT AGREEMENT THE SETTLEMENT AGREEMENT ISN'T FINAL YET NEGOTIATORS STILL ARE IRONING OUT OTHER DETAILS WITH A DEADLINE OF MARCH EIGHTH FOR REACHING A FINAL DEAL THEN THE PROPOSAL WOULD HAVE TO GO BEFORE U. S. DISTRICT JUDGE SAM C. POINTER JUNIOR IN BIRMINGHAM ALABAMA BEFORE IT COULD GO INTO EFFECT BRISTOL MYERS WOULD BE THE SECOND BIGGEST PAYER INTO THE LITIGATION SETTLEMENT FUND A SPOKESWOMAN SAID IT WOULD KICK IN QUOTE UP TO ONE POINT ONE FIVE BILLION DOLLARS QUOTE TOWARD THE SETTLEMENT OVER THE THIRTY YEARS OF THE DEAL BAXTER SAID IT WILL CONTRIBUTE APPROXIMATELY FIVE HUNDRED FIFTY SIX MILLION DOLLARS TO THE FUND ALL THREE COMPANIES PREVIOUSLY TOOK CHARGES RELATED TO THE COSTS OF IMPLANT LITIGATION AND ALL SAID THEY EXPECT VARYING PORTIONS OF THEIR LIABILITY TO BE PAID BY INSURERS DOW CORNING AND BRISTOL MYERS HAVE DROPPED OUT OF THE BREAST IMPLANT BUSINESS BAXTER NEVER WAS IN IT BUT INHERITED LIABILITY THROUGH A MERGER ALL THREE COMPANIES DENY SILICONE IMPLANTS ARE RELATED TO ANY ILLNESSES ROBERT L. COSTELLO FORTY TWO YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS ENGINEERING CONCERN SUCCEEDING JIMMY D. ALLISON FIFTY THREE WHO RESIGNED THOSE POSITIONS THE COMPANY SAID MR. ALLISON ASKED FOR A REASSIGNMENT TO CONCENTRATE ON QUOTE PUBLIC SLASH PRIVATE PARTNERSHIP ACTIVITIES PARTICULARLY IN THE AREA OF ALTERNATIVE FINANCING METHODOLOGIES FOR TRANSPORTATION INFRASTRUCTURE PROJECTS QUOTE HE WAS NAMED A VICE PRESIDENT MR. COSTELLO WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER OF THE COMPANY THE PERCENTAGE OF SPAIN'S TOTAL WORK FORCE REGISTERED AS UNEMPLOYED CLIMBED TO EIGHTEEN PERCENT IN JANUARY FROM SEVENTEEN POINT FIVE PERCENT IN DECEMBER THE LABOR MINISTRY SAID THE MINISTRY SAID THE NUMBER OF PEOPLE REGISTERED AS OUT OF WORK ROSE TWO POINT FOUR PERCENT OR SIXTY THREE THOUSAND SIX HUNDRED FIFTEEN TO TWO MILLION SEVEN HUNDRED SEVENTY THOUSAND BY THE END OF JANUARY FROM THE PREVIOUS MONTH THIS RAILCAR MAINTENANCE AND RETROFITTER NAMED PHILIP C. KANTZ PRESIDENT AND CHIEF EXECUTIVE OFFICER MR. KANTZ FIFTY YEARS OLD WAS PREVIOUSLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITEL CONTAINERS INTERNATIONAL CORPORATION HE SUCCEEDS STEVEN L. PEASE WHO RETURNS TO DEUCALION VENTURE PARTNERS IN SONOMA CALIFORNIA MR. PEASE FIFTY OVERSAW TRANSCISCO'S RECOVERY FROM REORGANIZATION PROCEEDINGS UNDER CHAPTER ELEVEN OF THE FEDERAL BANKRUPTCY CODE LAST YEAR MICHAEL M. AMEEN JUNIOR AN OIL INDUSTRY CONSULTANT WAS ELECTED A DIRECTOR OF THIS OIL AND NATURAL GAS EXPLORATION AND PRODUCTION COMPANY HE SUCCEEDS GEORGE W. BUSH A SON OF THE FORMER PRESIDENT OF THE U. S. WHO RESIGNED TO RUN FOR THE GOVERNORSHIP OF TEXAS CANADIAN PACIFIC LIMITED SAID IT WILL ISSUE TWENTY TWO MILLION COMMON SHARES AT TWENTY TWO POINT SEVEN FIVE CANADIAN DOLLARS SIXTEEN U. S. DOLLARS AND NINETY FOUR CENTS EACH FOR TOTAL PROCEEDS OF FIVE HUNDRED POINT FIVE MILLION CANADIAN DOLLARS THE ISSUE WHICH ISN'T BEING OFFERED IN THE U. S. IS EXPECTED TO CLOSE MARCH TENTH THE TRANSPORTATION AND ENERGY CONGLOMERATE SAID IT WILL USE NET PROCEEDS OF ABOUT FOUR HUNDRED EIGHTY FOUR MILLION CANADIAN DOLLARS TO REPAY DEBT FINANCE ADDITIONS TO PLANT AND PROPERTY AND FOR GENERAL CORPORATE PURPOSES R. B. C. DOMINION SECURITIES INCORPORATED IS LEAD UNDERWRITER CANADIAN PACIFIC CURRENTLY HAS THREE HUNDRED NINETEEN POINT THREE MILLION SHARES OUTSTANDING IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CANADIAN PACIFIC CLOSED AT SIXTEEN DOLLARS AND SEVENTY FIVE CENTS DOWN ONE DOLLAR THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND THREE EIGHTHS PERCENT HIGH THREE AND ONE QUARTER PERCENT LOW THREE AND FIVE SIXTEENTHS PERCENT NEAR CLOSING BID THREE AND THREE EIGHTHS PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT THREE SEVEN PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT FOUR OH PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT FOUR FIVE PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT FOUR EIGHT PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT FIVE OH PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT FIVE FIVE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED THIRTY NINE DAYS THREE POINT SIX THREE PERCENT TWO HUNDRED FORTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT FOUR FIVE PERCENT THIRTY DAYS THREE POINT FOUR NINE PERCENT SIXTY DAYS THREE POINT FIVE FOUR PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT SEVEN TWO PERCENT ONE MONTH TWO POINT SEVEN SEVEN PERCENT TWO MONTHS TWO POINT EIGHT THREE PERCENT THREE MONTHS THREE PERCENT SIX MONTHS THREE POINT TWO NINE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT THREE TWO PERCENT ONE MONTH THREE POINT FOUR TWO PERCENT THREE MONTHS THREE POINT SIX OH PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT TWO NINE PERCENT THIRTY DAYS THREE POINT THREE FIVE PERCENT SIXTY DAYS THREE POINT THREE EIGHT PERCENT NINETY DAYS THREE POINT FOUR FOUR PERCENT ONE HUNDRED TWENTY DAYS THREE POINT FIVE OH PERCENT ONE HUNDRED FIFTY DAYS THREE POINT FIVE FIVE PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT ONE MONTH THREE AND ONE HALF PERCENT THREE AND THREE EIGHTHS PERCENT TWO MONTHS THREE AND NINE SIXTEENTHS PERCENT THREE AND SEVEN SIXTEENTHS PERCENT THREE MONTHS THREE AND FIVE EIGHTHS PERCENT THREE AND ONE HALF PERCENT FOUR MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT THREE AND NINE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE QUARTERS PERCENT THREE AND FIVE EIGHTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND THREE EIGHTHS PERCENT ONE MONTH THREE AND NINE SIXTEENTHS PERCENT THREE MONTHS THREE AND THREE QUARTERS PERCENT SIX MONTHS FOUR AND ONE SIXTEENTH PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT NINE THREE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT TWO FIVE PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY FOURTEENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT TWO EIGHT PERCENT THIRTEEN WEEKS THREE POINT FOUR THREE PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SEVEN POINT OH SIX PERCENT SIXTY DAYS SEVEN POINT ONE TWO PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE DOW JONES TELERATE INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SEVEN POINT OH ONE PERCENT SIXTY DAYS SEVEN POINT ONE OH PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT TWO FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE DOW JONES TELERATE INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN TWO PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS THREE NEW DIRECTORS WERE NAMED BY THIS OIL AND GAS REFINING AND MARKETING COMPANY INCREASING THE BOARD TO SIXTEEN MEMBERS NAMED WERE FRED MANOCHERIAN A REAL ESTATE DEVELOPER IN NEW YORK JAMES Q. RIORDAN RETIRED PRESIDENT OF BEKAERT CORPORATION AND WILLIAM S. SNEATH RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF UNION CARBIDE CORPORATION SIMPLEX TECHNOLOGIES INCORPORATED A UNIT OF TYCO INTERNATIONAL LIMITED RECEIVED A CONTRACT FROM AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S A. T. AND T. SUBMARINE SYSTEMS INCORPORATED TERMS WEREN'T DISCLOSED SIMPLEX TECHNOLOGIES SAID IT WILL SUPPLY FIVE HUNDRED TWENTY FIVE KILOMETERS OF FIBER OPTIC TELECOMMUNICATIONS CABLE FOR A HAWAIIAN INTER ISLAND SYSTEM CONNECTING KAUAI OAHU MAUI AND HAWAII PRONET INCORPORATED SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE THE ASSETS OF CHICAGO COMMUNICATIONS SERVICE INCORPORATED'S PAGING OPERATION BASED IN CHICAGO WHICH SERVES THIRTY THOUSAND SUBSCRIBERS TERMS WEREN'T DISCLOSED PRONET A PROVIDER OF PAGING AND MESSAGE SERVICES SAID IN A NEWS RELEASE THAT THE TRANSACTION IS SUBJECT TO VARIOUS CONDITIONS INCLUDING DUE DILIGENCE A DEFINITIVE PURCHASE AGREEMENT AND APPROVAL BY PRONET'S BOARD IT ALSO IS SUBJECT TO FEDERAL COMMUNICATIONS COMMISSION REGULATORY AND OTHER THIRD PARTY APPROVALS THIS MAKER OF ATHLETIC FOOTWEAR AND APPAREL SAID IT NAMED THOMAS E. CLARKE PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE JUNE FIRST NINETEEN NINETY FOUR MR. CLARKE FORTY TWO YEARS OLD IS GENERAL MANAGER OF THE NIKE BRAND HE SUCCEEDS RICHARD K. DONAHUE SIXTY SEVEN WHO BECOMES VICE CHAIRMAN OF THE BOARD HE HAS SERVED ON THE BOARD SINCE NINETEEN SEVENTY SEVEN ROBERT A. HURWICH FIFTY TWO YEARS OLD WAS NAMED VICE PRESIDENT ADMINISTRATION SECRETARY AND GENERAL COUNSEL AT THIS SERVICE COMMUNICATIONS AND MANUFACTURING COMPANY SUCCEEDING DANIEL E. MILLER WHO LEFT THE COMPANY IN JANUARY MR. HURWICH WAS VICE PRESIDENT SECRETARY AND GENERAL COUNSEL AT MOORE MCCORMACK RESOURCES INCORPORATED FROM NINETEEN SEVENTY FIVE TO NINETEEN EIGHTY NINE THE BABY BELLS HAVE SEEN THE THREAT AND PROMISE IN THE COMING WIRELESS WARS AND THEY BOTH LOOK A LOT LIKE DAVID NEVINS OF BALTIMORE MR. NEVINS A BALTIMORE PUBLIC RELATIONS EXECUTIVE WHO BEARS AN UNCANNY RESEMBLANCE TO MILES SILVERBERG ON THE T. V. SHOW QUOTE MURPHY BROWN QUOTE WOULD SEEM TO BE A MODEL CUSTOMER HE TALKS ALMOST CONSTANTLY ON HIS CAR PHONE WHILE DRIVING FROM ONE APPOINTMENT TO ANOTHER USING STALLED TIME IN TRAFFIC JAMS TO RETURN CALLS AND CATCH UP ON OTHER BUSINESS PART OF HIS NIGHTLY RITUAL IS CLEANING OUT THE CRUMPLED PINK MESSAGE SLIPS THAT ACCUMULATE ON THE FLOOR THROUGHOUT THE DAY A CELLULAR DEVOTEE FOR NEARLY A DECADE MR. NEVINS SAYS HE WOULDN'T EVEN THINK OF BOARDING A TRAIN OR HEADING ONTO THE GOLF COURSE WITHOUT HIS PORTABLE IN HAND I CAN'T BE OUT OF CONTACT WITH MY OFFICE FOR FOUR OR FIVE HOURS MR. NEVINS EXPLAINS DURING A PHONE INTERVIEW FROM WHERE ELSE HIS CAR IF I DIDN'T HAVE TO WORRY ABOUT COST I'D USE IT FAR MORE FREQUENTLY THAN I DO NOW FOR THE LOCAL PHONE COMPANY THERE'S JUST ONE CATCH IT ISN'T CASHING IN ON MR. NEVINS'S CELLULAR HABIT A RIVAL IS THE LOCAL COMPANY IS BELL ATLANTIC CORPORATION OF PHILADELPHIA WHICH HAS A VIRTUAL MONOPOLY ON THE OLD FASHIONED WIRED PHONE NETWORK THAT SERVES THE MID ATLANTIC REGION BUT MR. NEVINS BUYS HIS CELLULAR SERVICES FROM CELLULAR ONE WHICH IS OWNED BY A RIVAL BABY BELL SOUTHWESTERN BELL CORPORATION OF SAN ANTONIO LITTLE WONDER THEN THAT THE SEVEN REGIONAL BELL COMPANIES LOOK AT THE WIRELESS REVOLUTION WITH A MIXTURE OF DREAD AND EXCITEMENT SPUN OFF FROM THE OLD A. T. AND T. EMPIRE A DECADE AGO THE BABY BELLS ARE SOME OF THE MOST WIRED UP COMPANIES IN THE WORLD DERIVING MORE THAN NINETY PERCENT OF THEIR PROFITS FROM WIRED TELEPHONE SERVICE ANY BREAKTHROUGHS IN THE UNTETHERED AND UNFETTERED FUTURE OF WIRELESS TECHNOLOGY WOULD SEEM TO THREATEN THEM MOST THE BABY BELLS AFTER ALL DON'T GET PAID WHEN CUSTOMERS SIMPLY SIDESTEP THEIR WIRED NETWORKS AT SOME POINT IT WILL GET MORE COST EFFICIENT FOR CUSTOMERS TO USE WIRELESS SERVICES SAYS ROBERT BARADA VICE PRESIDENT OF CORPORATE STRATEGY FOR PACIFIC TELESIS GROUP THE SAN FRANCISCO BASED BABY BELL THAT SERVES CALIFORNIA AND NEVADA CLEARLY THAT'S WHEN WIRELESS WILL START TO EAT INTO THE WIRE LINE MARKET SO THE BABY BELLS FACE A HOBSON'S CHOICE THEY CAN SIT IDLY BY AND LET THE WIRELESS FUTURE SOMEDAY RENDER THEIR NETWORKS ALL BUT OBSOLETE OR THEY CAN DIVE INTO THE WIRELESS FRAY AND PERHAPS HELP ACCELERATE THE ARRIVAL OF THAT SAME SCENARIO AND THAT'S WHERE THE PROMISE OF WIRELESS COMES IN FOR THE BABY BELLS FOR THE MOST PART THEY ARE CHOOSING THE LATTER ROUTE OFFERING CELLULAR PHONE SERVICE INVESTING IN FOREIGN CELLULAR MARKETS AND STARTING UP WIRELESS DATA SERVICES THEY ALSO ARE TAKING ON A NEW KIND OF WIRE BASED PARTNER CABLE T. V. COMPANIES IN THE HOPE OF KEEPING THEIR LAND LINES HUMMING WITH ALL MANNER OF NEW INTERACTIVE SERVICES THEY MUST CHASE THE WIRELESS FUTURE WITH NO SMALL AMOUNT OF URGENCY UNTIL NOW CUSTOMERS HAVE HAD THEIR CHOICE OF JUST TWO COMPANIES FOR CELLULAR PHONE SERVICE IN ANY GIVEN MARKET TYPICALLY THE HOMETOWN BABY BELL AND A COMPETITOR ABOUT HALF OF THE NATION'S FOURTEEN MILLION WIRELESS CUSTOMERS CURRENTLY BUY CELLULAR SERVICES FROM THE CELLULAR BUSINESSES OWNED BY THEIR LOCAL BELL COMPANIES THIS SPRING FEDERAL REGULATORS WILL BEGIN DOLING OUT THOUSANDS OF LICENSES UP TO SEVEN IN EACH MARKET FOR ACCESS TO THE PARTS OF THE ELECTROMAGNETIC SPECTRUM THAT WILL HOUSE THE NEXT GENERATION OF CELLULAR TECHNOLOGY PERSONAL COMMUNICATIONS SERVICES TO HEAR PROPONENTS TELL IT P. C. S. WILL BE A LOT CHEAPER AND MORE CUSTOMER FRIENDLY THAN TODAY'S CELLULAR SERVICE AND HAVE A LOT MORE FEATURES THOUGH THE BABY BELLS ARE AMONG DOZENS OF COMPANIES PLANNING TO BID FOR P. C. S. LICENSES REGULATORS WILL EXCLUDE THEM FROM BIDDING FOR SOME PRIME LICENSES BECAUSE OF THEIR ALREADY SIZABLE PRESENCE IN CELLULAR PHONE SERVICE THE BELLS PLAN TO RETROFIT AND UPGRADE THEIR EXISTING NETWORKS TO BE ABLE TO MATCH THE ENHANCED SERVICES OF P. C. S. COMPETITORS P. C. S. OFFERS ANOTHER THREAT AS WELL TRADITIONAL CELLULAR SERVICE OFTEN ENDS UP ROUTING A CALL ONTO THE WIRELINE OF A BABY BELL AND HENCE OFFERS AT LEAST A LITTLE REVENUE TO THE PHONE COMPANY P. C. S. NETWORKS MAY ONE DAY LET ONE POCKET COMMUNICATOR ZAP A CALL DIRECTLY TO ANOTHER WITHOUT EVER HAVING TO JUMP ONTO A BABY BELL'S LINE THAT WOULD AVOID THE PAYMENT OF ANY ACCESS FEES TO THE PHONE COMPANY THE P. C. S. THREAT IS QUOTE THE BIG ONE QUOTE SAYS ANALYST MARION BOUCHER OF DONALDSON LUFKIN AND JENRETTE IN NEW YORK IT'S THE FORM OF COMMUNICATION THAT COULD MAKE THE EXISTING LAND LOCKED NETWORK OBSOLETE EVEN REGULAR CELLULAR SERVICE POSES A THREAT TO THE BABY BELLS LETTING LONG DISTANCE CALLS BYPASS THEIR LOCAL NETWORKS AT RISK IS THE TWENTY BILLION DOLLARS IN ANNUAL FEES THE SEVEN REGIONAL BELLS CURRENTLY RECEIVE FROM LONG DISTANCE PROVIDERS FOR ROUTING CALLS TO THEIR LOCAL CUSTOMERS THAT REPRESENTS A HEFTY TWENTY FIVE PERCENT OF THE BABY BELLS' ANNUAL REVENUES CELLULAR SYSTEMS IN PARTICULAR THOSE OWNED BY AMERICAN TELEPHONE AND TELEGRAPH COMPANY THROUGH ITS PLANNED TWELVE POINT SIX BILLION DOLLAR ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS INCORPORATED COULD LET A LONG DISTANCE PROVIDER AVOID PAYING SUCH ACCESS FEES EVERY TIME SOMEBODY MAKES A LONG DISTANCE CALL WITHOUT USING THE BELLS THEY LOSE SAYS JEFFREY MILLER A PARTNER AT ANDERSEN CONSULTING INCORPORATED IN NEW YORK PACIFIC TELESIS WAS SO WORRIED ABOUT THE WIRELESS FUTURE THAT IT DECIDED LAST YEAR TO TAKE THE UNUSUAL STEP OF SPINNING OFF ITS CELLULAR OPERATIONS INTO A SEPARATE COMPANY THAT NEW CELLULAR UNIT WILL BE ABLE TO COMPETE MORE AGGRESSIVELY UNSHACKLED FROM REGULATORY RESTRICTIONS THE SPINOFF IS EXPECTED TO BE COMPLETED THIS SPRING OTHER BELLS HAVE TAKEN LESS DRASTIC STEPS SOUTHWESTERN BELL STARTED GIRDING FOR THE WIRELESS WAR EARLY SNAPPING UP CELLULAR PROPERTIES IN NINETEEN EIGHTY SEVEN AND PAYING WHAT SEEMED LIKE A RIDICULOUSLY HIGH PRICE FIFTY DOLLARS PER POTENTIAL SUBSCRIBER IN THE WASHINGTON D. C. BALTIMORE AND CHICAGO MARKETS WALL STREET LAUGHED AT THEM AT THE TIME RECALLS STEVEN R. YANIS A TELECOMMUNICATIONS ANALYST WITH KIDDER PEABODY AND COMPANY IN NEW YORK WALL STREET ISN'T LAUGHING ANYMORE TODAY THOSE SAME PROPERTIES WOULD COST MORE THAN THREE HUNDRED DOLLARS PER POTENTIAL SUBSCRIBER IF THEY WERE FOR SALE WHICH THEY AREN'T AND SOUTHWESTERN BELL IS AT THE TOP OF THE CELLULAR HEAP AMONG THE BELLS PART OF THE COMPANY'S WINNING STRATEGY IS TO PRICE SERVICES LOWER THAN ITS COMPETITORS CUSTOMERS HAVE RESPONDED BY FLOCKING TO THE COMPANY IN RECORD NUMBERS THE BABY BELL ADDED AN EYE POPPING TWO HUNDRED THOUSAND CELLULAR SUBSCRIBERS IN THE FOURTH QUARTER ALONE THAT GAVE SOUTHWESTERN BELL A YEAR END SUBSCRIBER BASE OF MORE THAN TWO MILLION CELLULAR CUSTOMERS THE LARGEST AMONG THE BELLS THE COMPANY ALSO BOASTS THE HIGHEST PENETRATION RATE AMONG THE BELLS FIVE POINT SEVEN PERCENT OF POTENTIAL SUBSCRIBERS COMPARED WITH THE BABY BELL AVERAGE OF THREE POINT EIGHT PERCENT THE CELLULAR UNIT IS ALSO UNBELIEVABLY EFFICIENT REVENUE PER EMPLOYEE A BENCHMARK OF WORKER PRODUCTIVITY IS ALMOST DOUBLE THE CELLULAR INDUSTRY AVERAGE AT FOUR HUNDRED FIVE THOUSAND DOLLARS SIMILARLY THE NUMBER OF SUBSCRIBERS PER EMPLOYEE IS SIX HUNDRED AT SOUTHWESTERN BELL THE INDUSTRY AVERAGE IS HALF THAT SOUTHWESTERN BELL IS CLEARLY THE BEST OPERATOR MR. YANIS SAYS PACIFIC TELESIS WAS ANOTHER EARLY BELIEVER IN CELLULAR TODAY IT HAS MORE THAN ONE MILLION SUBSCRIBERS THE PLANNED SPINOFF WILL FREE UP THE WIRELINE TELEPHONE COMPANY TO GO AFTER THE CHOICEST P. C. S. LICENSES THIS SPRING IT WILL ALSO PUT THE BABY BELL IN THE UNUSUAL POSITION OF COMPETING AGAINST ITS FORMER SIBLING FOR WIRELESS CUSTOMERS PACTEL'S DOMESTIC OPERATIONS ARE BOLSTERED BY A STRONG INTERNATIONAL PRESENCE INCLUDING A LUCRATIVE VENTURE IN GERMANY THAT CONTINUES TO EXCEED WALL STREET'S EXPECTATIONS ATLANTA BASED BELLSOUTH CORPORATION ALSO GETS KUDOS FOR ITS CELLULAR OPERATIONS WHICH CLAIM OVER ONE POINT FIVE MILLION CUSTOMERS MORE THAN HALF OF THE COMPANY'S POTENTIAL SUBSCRIBERS ARE LOCATED OVERSEAS THE BABY BELL'S CELLULAR OPERATIONS ARE PARTICULARLY STRONG IN LATIN AMERICA WHERE THE BASIC LAND LINE INFRASTRUCTURE IS SO BAD THAT MANY PEOPLE USE CELLULAR AS THEIR PRIMARY FORM OF COMMUNICATIONS BELLSOUTH ALSO HAS A NATIONWIDE PAGING SYSTEM AND A MAJOR STAKE IN A WIRELESS DATA SERVICE OUTSIDE ITS HOME TERRITORY BELL ATLANTIC GOT INTO THE CELLULAR GAME FAIRLY LATE ANNOUNCING ITS ARRIVAL IN NINETEEN NINETY TWO WITH THE PURCHASE OF METRO MOBILE C. T. S. INCORPORATED ONE OF THE LARGEST NON BELL INDEPENDENT CELLULAR COMPANIES IN THE NATION THE ACQUISITION EXTENDED BELL ATLANTIC'S CELLULAR REACH INTO THE BACKYARDS OF ITS FORMER SIBLINGS IN THE NORTHEAST SOUTHEAST AND SOUTHWEST BELL ATLANTIC TODAY CLAIMS ABOUT ONE MILLION SUBSCRIBERS THE CELLULAR UNIT CONTINUES TO AGGRESSIVELY ROLL OUT NEW SERVICES A HALLMARK OF SOUTHWESTERN BELL AS WELL BOTH COMPANIES OFFER A ONE PERSON ONE NUMBER SERVICE THAT ALLOWS CUSTOMERS TO GET QUOTE FOLLOW ME QUOTE CALLING FROM THE OFFICE TO THE CAR AND HOME AMERITECH CORPORATION CHICAGO U. S. WEST INCORPORATED DENVER AND NYNEX CORPORATION WHITE PLAINS N. Y. ARE CONSIDERED THE LEAST AGGRESSIVE CELLULAR PERFORMERS AMONG THE BELLS THE COMPANIES HAVE DONE LITTLE TO BUILD ON THEIR CELLULAR FRANCHISES OVER THE YEARS PERHAPS LEAVING THEM THE WORST PREPARED FOR THE COMING SHOWDOWN WITH NEW WIRELESS COMPETITORS AMERITECH HAS EIGHT HUNDRED SIXTY THOUSAND SUBSCRIBERS FOLLOWED BY U. S. WEST WITH SIX HUNDRED ONE THOUSAND SUBSCRIBERS DEAD LAST WITH FIVE HUNDRED SEVENTY FIVE THOUSAND SUBSCRIBERS IS NYNEX WHICH HAS BEEN SIGNIFICANTLY UPGRADING ITS NETWORK AND INTRODUCING A RAFT OF NEW SERVICES IN AN EFFORT TO LURE NEW CUSTOMERS MARKETING PLANS STRATEGIC ALLIANCES AND OVERSEAS INVESTMENTS MATTER LITTLE OF COURSE TO CUSTOMERS LIKE MR. NEVINS OF BALTIMORE LIKE ANY CONSUMER HIS PRIMARY CONCERN IS GETTING THE BEST DEAL IN TOWN FROM WHOEVER HAPPENS TO BE OFFERING IT I'M GOING TO GO WITH WHATEVER COMPANY OFFERS THE BEST SERVICE FOLLOWED BY THE BEST PRICE MR. NEVINS SAYS IT DOESN'T MATTER TO ME IF THAT HAPPENS TO BE BELL ATLANTIC OR SOMEBODY ELSE MS. CAULEY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU A VIGOROUS STOCK MARKET RALLY WITHERED AMID FALLING BOND PRICES AND A PLUNGING DOLLAR BUT SHARE PRICES STILL FINISHED HIGHER THE DOW JONES INDUSTRIAL AVERAGE ROSE NINE POINT TWO EIGHT POINTS TO THREE THOUSAND NINE HUNDRED FOUR POINT OH SIX STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX EDGED UP ZERO POINT ZERO FIVE TO FOUR HUNDRED SEVENTY POINT TWO THREE AND THE NASDAQ COMPOSITE INDEX ROSE FOUR POINT OH SIX TO SEVEN HUNDRED EIGHTY FIVE POINT FOUR FIVE THE DOW INDUSTRIALS SHOT UP MORE THAN TWENTY FIVE POINTS BEFORE TRADE FRICTIONS BETWEEN THE U. S. AND JAPAN ROILED THE MARKET EARLY IN THE SESSION STOCK MARKET INVESTORS IGNORED THE SINKING DOLLAR AND FOCUSED INSTEAD ON THE MOSTLY BENIGN INFLATION REPORT RELEASED FRIDAY A STABLE BOND MARKET FOR PART OF YESTERDAY ALSO HELPED PROP UP STOCK PRICES BUT CONCERNS THEN TURNED TO THE POTENTIAL FALLOUT FROM THE U. S. JAPAN TRADE CONFLICT BOND INVESTORS WORRIED THAT A WEAK DOLLAR WILL IGNITE INFLATION AND PROMPT JAPANESE INVESTORS TO SELL THEIR U. S. BONDS THAT DROVE BOND PRICES LOWER AND CARRIED STOCK PRICES RIGHT ALONG ANALYSTS SAID COMPUTER GUIDED PROGRAMS WERE RESPONSIBLE BOTH FOR THE STOCK MARKET'S EARLY ADVANCE AND ITS LATER DECLINE JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ WASN'T SURPRISED BY THE STOCK MARKET'S ABOUT FACE FAR MORE SURPRISING TO HIM WAS THAT STOCK PRICES RALLIED AT ALL HE ARGUED THAT THE RECENT RISE IN INTEREST RATES HAS INITIATED A CORRECTION THAT WILL TAKE THE DOW INDUSTRIALS DOWN FIFTEEN PERCENT FROM THEIR HIGH QUOTE THE KEY IS WE'RE IN A CORRECTION PHASE AND YOU'LL SEE A LOT OF ZIGZAGS HEAD FAKES AND FALSE RALLIES QUOTE MR. MCALINDEN SAID THE TREND OVERALL WILL BE A SLOW WATER TORTURE KIND OF DECLINE ECONOMICALLY SENSITIVE STOCKS WHICH HAVE LED THE MARKET CAME UNDER HEAVY SELLING PRESSURE PRECIOUS METALS STOCKS HOWEVER ROSE AS GOLD FOR APRIL DELIVERY CLIMBED THREE DOLLARS AND NINETY CENTS TO THREE HUNDRED EIGHTY FIVE DOLLARS AND SIXTY CENTS AN OUNCE THE ONLY ECONOMIC NEWS CAME FROM THE COMMERCE DEPARTMENT WHICH SAID DECEMBER BUSINESS INVENTORIES WERE UNCHANGED IN LINE WITH ANALYSTS' EXPECTATIONS WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED ZERO POINT NINE ZERO TO ONE HUNDRED SIXTEEN POINT NINE TWO STOCK PRICES ROSE VOLUME TOTALED TWO HUNDRED SIXTY THREE POINT ONE MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND ONE HUNDRED THIRTY FOUR ISSUES ROSE AND ONE THOUSAND TWENTY NINE FELL BOND PRICES FELL THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE LOST MORE THAN ONE HALF POINT OR MORE THAN FIVE DOLLARS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT FOUR FIVE PERCENT THE DOLLAR TUMBLED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN TWO SEVEN THREE MARKS AND ONE HUNDRED TWO POINT SIX FIVE YEN COMPARED WITH ONE POINT SEVEN FIVE FOUR THREE MARKS AND ONE HUNDRED SIX POINT EIGHT FIVE YEN FRIDAY MARK SOLUTIONS INCORPORATED SAID IT SIGNED A LETTER OF INTENT TO PURCHASE BILT RITE STEEL BUCK CORPORATION FINANCIAL TERMS WEREN'T DISCLOSED IN A NEWS RELEASE MARK SOLUTIONS SAID BILT RITE IN WESTBURY N. Y. IS A MAKER OF HOLLOW METAL PRODUCTS IT OPERATES FOUR PLANTS THAT PRODUCE METAL DOOR AND FRAME PRODUCTS THE COMPANY SAID BILT RITE CURRENTLY HAS ANNUAL SALES OF ABOUT TWENTY TWO MILLION DOLLARS M. L. MIKE SKOLNICK FIFTY THREE YEARS OLD WAS APPOINTED EXECUTIVE VICE PRESIDENT OF THE ROCKETDYNE DIVISION A NEW POSITION AT THE CANOGA PARK CALIFORNIA UNIT HE PREVIOUSLY WAS VICE PRESIDENT OF ADVANCED PROGRAMS AT THE PARENT'S SYSTEM DEVELOPMENT CENTER ROCKWELL IS A DIVERSIFIED HIGH TECHNOLOGY CONCERN WITH INTERESTS IN THE ELECTRONICS AEROSPACE AUTOMOTIVE AND GRAPHICS BUSINESSES ODETICS INCORPORATED RECEIVED A NINE POINT SIX MILLION DOLLAR SUBCONTRACT FROM MARTIN MARIETTA CORPORATION FOR SPACE DATA RECORDERS FOR THE LANDSAT SEVEN PROGRAM ODETICS SAID LANDSAT SEVEN WHICH IS MANUFACTURED BY MARTIN MARIETTA IS AN EARTH RESOURCE OBSERVATION PROGRAM THAT COLLECTS INFORMATION ABOUT THE EARTH FROM SPACE IN A NEWS RELEASE THE COMPANY SAID THE LANDSAT SEVEN PROGRAM IS FUNDED JOINTLY BY THE DEPARTMENT OF DEFENSE AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION ODETICS SAID ITS INFORMATION STORAGE DIVISION FORMERLY SPACE DIVISION WILL PROVIDE MARTIN MARIETTA WITH THREE SPACEDATA RECORDERS BY MID NINETEEN NINETY SIX THE COMPANY SAID THE RECORDERS WILL BE ON BOARD THE LANDSAT SEVEN SPACECRAFT AND WILL STORE EARTH RESOURCE INFORMATION WHEN DATA LINKS ARE UNABLE TO COMMUNICATE DIRECTLY WITH GROUND RECEIVING STATIONS TRICONEX CORPORATION ACQUIRED PREMIER ENGINEERING INCORPORATED A BATON ROUGE LOUISIANA BASED ENGINEERING COMPANY FOR ONE POINT NINE MILLION DOLLARS IN A STATEMENT THE INDUSTRIAL SAFETY AND CONTROL SYSTEMS COMPANY SAID PREMIER SPECIALIZES IN IMPLEMENTING SAFETY CRITICAL SYSTEMS FOR THE PETROCHEMICAL INDUSTRY TWO NEW DIRECTORS WERE NAMED BY THIS ENERGY COMPANY RAISING THE BOARD'S SIZE TO EIGHT MEMBERS THE NEW DIRECTORS ARE JAMES R. PAUL RETIRED FORMER PRESIDENT AND CHIEF EXEUCTIVE OF COASTAL CORPORATION AND JAMES T. RODGERS RETIRED FORMER PRESIDENT AND CHIEF OPERATING OFFICER OF ANADARKO PETROLEUM CORPORATION ONTARIO HYDRO SAID IT PLANS TO CUT GENERATING CAPACITY BY EIGHT POINT FOUR PERCENT TO REDUCE ITS ELECTRICITY SURPLUS AND LOWER COSTS THE STATE OWNED UTILITY SAID IT EXPECTS TO CUT TWO HUNDRED MILLION CANADIAN DOLLARS ONE HUNDRED FORTY SEVEN POINT EIGHT MILLION U. S. DOLLARS FROM ITS OPERATING COSTS OVER THE NEXT TEN YEARS BY SHUTTING DOWN PARTS OF THREE GENERATING STATIONS TWO OF THE FOUR UNITS AT THE LENNOX OIL FIRED GENERATING STATION NEAR KINGSTON ONTARIO WILL CLOSE AS WELL AS TWO OF FOUR UNITS AT THE LAMBTON GENERATING STATION NEAR SARNIA ONTARIO IN ADDITION THE UTILITY PLANS TO MOTHBALL ONE OF EIGHT UNITS AT ITS BRUCE NUCLEAR GENERATING FACILITY NEAR OWEN SOUND ONTARIO BY SEPTEMBER NINETEEN NINETY FIVE TWO YEARS AHEAD OF SCHEDULE THE CLOSURES WILL REMOVE TWO THOUSAND SEVEN HUNDRED MEGAWATTS OF CAPACITY FROM ONTARIO HYDRO'S TOTAL INSTALLED CAPACITY OF THIRTY TWO THOUSAND TWO HUNDRED THIRTY ONE MEGAWATTS A SPOKESMAN FOR THE UTILITY SAID TOTAL SURPLUS CAPACITY IS ESTIMATED AT BETWEEN THREE THOUSAND AND FIVE THOUSAND MEGAWATTS OVER AND ABOVE THE TWENTY TWO PERCENT MARGIN ALREADY ALLOWED ABOVE DAILY PEAK REQUIREMENTS MAURICE STRONG CHAIRMAN OF THE UTILITY SAID THE CUTS WERE MADE NECESSARY BY A DROP IN ELECTRICITY SALES OVER THE PAST FOUR YEARS IN ONTARIO WHICH HAS BEEN HARD HIT BY THE RECESSION EVEN IF DEMAND INCREASES BEYOND CURRENT EXPECTATIONS HE SAID THERE WILL BE QUOTE MORE THAN ADEQUATE CAPACITY QUOTE AVAILABLE THE CONSEQUENCES OF NOT TAKING ACTION AT THIS TIME WOULD PLACE UNACCEPTABLE BURDENS ON THE CORPORATION'S FINANCIAL CONDITIONS AND ITS RATES MR. STRONG SAID HYDRO WHICH FROZE ITS RATES THIS YEAR AFTER THREE SUCCESSIVE YEARS OF LARGE INCREASES NOW PLANS TO SEEK A ONE POINT FOUR PERCENT RATE INCREASE FOR NINETEEN NINETY FIVE IN LINE WITH THE UTILITY'S INFLATION EXPECTATIONS THE COSTS ASSOCIATED WITH THE CLOSURE WILL BRING HYDRO'S FINAL LOSS FOR NINETEEN NINETY THREE TO THREE POINT FIVE BILLION CANADIAN DOLLARS THE UPPER END OF A PREVIOUS FORECAST ELEANOR CLITHEROE THE UTILITY'S CHIEF FINANCIAL OFFICER SAID PREVIOUSLY THAT BEFORE THE IMPACT OF ONE TIME RESTRUCTURING CHARGES AND ASSET WRITE OFFS HYDRO RECORDED A SMALL OPERATING PROFIT FOR THE YEAR SHE SAID THE UTILITY EXPECTS TO REPORT A PROFIT OF SIX HUNDRED MILLION CANADIAN DOLLARS IN NINETEEN NINETY FOUR HUFFY CORPORATION REPORTED A LOSS IN THE FOURTH QUARTER AND RECORDED A TWENTY POINT THREE MILLION DOLLAR CHARGE TO CUT TWO HUNDRED JOBS AND RESTRUCTURE OPERATIONS AT ITS TRUE TEMPER HARDWARE COMPANY UNIT FOR THE QUARTER THE MAKER OF BICYCLES BASKETBALL BACKBOARDS AND LAWN AND GARDEN TOOLS REPORTED A LOSS OF SEVENTEEN POINT NINE MILLION DOLLARS OR ONE DOLLAR AND TWENTY SIX CENTS A SHARE COMPARED WITH A LOSS OF THREE HUNDRED TWENTY ONE THOUSAND DOLLARS OR TWO CENTS A SHARE IN THE YEAR EARLIER PERIOD REVENUE DECLINED SEVENTEEN PERCENT TO ONE HUNDRED FIFTY FIVE POINT FIVE MILLION DOLLARS FROM ONE HUNDRED EIGHTY SIX POINT SEVEN MILLION DOLLARS WITHOUT THE CHARGES THE COMPANY SAID NINETEEN NINETY THREE FOURTH QUARTER EARNINGS WOULD HAVE BEEN TWO POINT FOUR MILLION DOLLARS OR SEVENTEEN CENTS A SHARE THE COMPANY ATTRIBUTED DECLINING SALES TO THE ELIMINATION OF TRADITIONAL YEAR END ORDERING INCENTIVES AND EMPHASIS ON JUST IN TIME ORDERS WHICH IS CONTRIBUTING TO A SLOW START FOR NINETEEN NINETY FOUR HUFFY SAID OPERATING PROFITS IMPROVED DUE TO BETTER MARGINS AT THE COMPANY'S RECREATION AND LEISURE TIME PRODUCTS GROUP WHICH INCLUDES THE COMPANY'S BICYCLES AND BASKETBALL BACKBOARDS SEGMENTS IN RESTRUCTURING ITS TRUE TEMPER UNIT HUFFY TOOK A FOURTEEN POINT THREE MILLION DOLLAR CHARGE TO WRITE DOWN ASSETS AND GOODWILL AND A SIX MILLION DOLLAR CHARGE TO CUT JOBS AND ELIMINATE UNPROFITABLE AND MARGINALLY PROFITABLE PRODUCT LINES SUCH AS PRUNING TOOLS AND SPREADERS A SPOKESWOMAN SAID MOST OF THE JOB REDUCTIONS WOULD COME FROM THE CLOSURE OF ITS ANDERSON S. C. PLANT HUFFY WITH ABOUT SIX THOUSAND FOUR HUNDRED EMPLOYEES WORLD WIDE SAID IT WILL REDUCE THE NUMBER OF EMPLOYEES AT TRUE TEMPER TO SIX HUNDRED FROM ABOUT EIGHT HUNDRED THE COMPANY ADDED THAT IT EXPECTS IMPROVED EFFICIENCY AND SAVINGS WILL PAY FOR THE RESTRUCTURING CHARGES BY THE END OF NINETEEN NINETY FIVE FOR THE YEAR HUFFY REPORTED A NET LOSS OF FOUR POINT NINE MILLION DOLLARS OR THIRTY EIGHT CENTS A SHARE COMPARED WITH NET INCOME OF FOUR POINT TWO MILLION DOLLARS OR THIRTY THREE CENTS A SHARE IN NINETEEN NINETY TWO REVENUE INCREASED EIGHT PERCENT TO SEVEN HUNDRED FIFTY SEVEN POINT NINE MILLION DOLLARS FROM SEVEN HUNDRED THREE POINT THREE MILLION DOLLARS IN NINETEEN NINETY TWO IN NEW YORK STOCK EXCHANGE TRADING HUFFY FINISHED DOWN TWELVE POINT FIVE CENTS AT NINETEEN DOLLARS THE EFFORTS OF TWO ENTREPRENEURS TO SELL TAX SHELTERED ANNUITY LIKE PRODUCTS THROUGH A SMALL INDIAN OWNED BANK IN MONTANA ARE LIKELY TO RUN INTO HEAVY CRITICISM FROM BANK REGULATORS AS WELL AS A BLIZZARD OF LITIGATION FROM THE INSURANCE INDUSTRY BLACKFEET NATIONAL BANK OF BROWNING MONTANA HOPES TO SELL FEDERALLY INSURED CERTIFICATES OF DEPOSIT THAT WOULD ALLOW CUSTOMERS TO ACCUMULATE INTEREST ON A TAX FREE BASIS UNTIL THE MONEY IS WITHDRAWN THE PRODUCT WHICH WILL BE PROMOTED IN A NATIONWIDE MARKETING EFFORT BEGINNING TODAY WOULD COMPETE DIRECTLY WITH THE INSURANCE INDUSTRY'S FORTY BILLION DOLLARS OF ANNUAL ANNUITY SALES THE TWO ENTREPRENEURS WHO PERSUADED THE BANK TO OFFER THE PRODUCT RICK FASOLD A DENVER BANKING CONSULTANT AND DENNIS M. GINGOLD A WASHINGTON LAWYER CLAIM THAT THEY HAVE FOUND A LOOPHOLE IN REGULATIONS THAT HAVE HERETOFORE RESTRICTED BANKS FROM OFFERING ANNUITIES MR. FASOLD SAID QUOTE WHAT WE ARE OFFERING IS A C. D. FOR BANKING LAW PURPOSES AND AN ANNUITY FOR TAX LAW PURPOSES QUOTE BUT REGULATORS HAVEN'T APPROVED ANY SUCH OFFERING AND SAY THEY STILL HAVE PLENTY OF QUESTIONS ABOUT THE PROPOSED PRODUCTS THEY CAME IN WITH AN IDEA AND WE SAID THAT LOOKS INTERESTING BUT THAT WE HAD SOME QUESTIONS SAID LEONORA CROSS THE U. S. DEPUTY COMPTROLLER OF THE CURRENCY THEY THEN SAID WE AREN'T ASKING FOR A LEGAL OPINION ALTHOUGH MR. GINGOLD WAS QUOTED AS SAYING THAT THE OFFICE OF THE COMPTROLLER OF THE CURRRENCY TOLD HIM THE ACCOUNT WOULD BE COVERED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION MS. CROSS STATED I CAN SAY WITH ABSOLUTE CERTAINTY THAT WE DIDN'T TELL THEM THAT THEY WOULD BE INSURED BY THE F. D. I. C. ONLY THE F. D. I. C. CAN DO THAT MS. CROSS SAID THE COMPTROLLER'S OFFICE LAST NIGHT ADVISED THE BANK NOT TO GO AHEAD WITH PLANS TO INTRODUCE THE PRODUCT WE ARE NOTIFYING THE BANK TO LET THEM KNOW THAT WE THINK THEY MIGHT BE WORKING UNDER INCORRECT INFORMATION WE HAVE A LOT OF QUESTIONS PARTICULARLY CONCERNING THE FINANCIAL AND LEGAL RISK TO THE BANK ITSELF WE THINK IT IS IN THE BEST INTEREST OF THE BANK TO HOLD OFF ON DOING ANYTHING QUOTE A SPOKESMAN FOR THE F. D. I. C. SAID NEITHER MR. GINGOLD NOR MR. FASOLD APPROACHED THE AGENCY AND THAT IT WOULD WORK WITH THE COMPTROLLER'S OFFICE TO LOOK INTO THE MATTER ALTHOUGH MR. GINGOLD HAS BEEN QUOTED SAYING HE HAD A LETTER FROM THE INTERNAL REVENUE SERVICE CONFIRMING THAT TAXES ON THE INTEREST EARNED BY THE ACCOUNTS WOULD BE DEFERRED UNTIL THE FUNDS WERE WITHDRAWN MR. FASOLD SAID YESTERDAY THAT HIS PARTNER DIDN'T ACTUALLY HAVE A LETTER BUT THAT HE HAD A LEGAL OPINION SUPPORTING HIS POSITION SEVERAL BANKING ATTORNEYS WERE EXTREMELY SKEPTICAL AS TO THE BANK'S ABILITY TO OFFER ITS PRODUCT IT'S VERY HARD TO BELIEVE THAT A LOOPHOLE AS BIG AS THIS REALLY EXISTS SAID LEE MYERSON OF SIMPSON THATCHER AND BARTLETT IN NEW YORK A WASHINGTON LAWYER WHO SPECIALIZES IN BANK REGULATION SAID OF BLACKFEET NATIONAL'S PLANS I THINK THERE IS A LOT MORE PROMOTION TO THIS THAN THERE IS SUBSTANCE I AM NOT SURE THEY REALLY HAVE A PRODUCT ANOTHER ATTORNEY SAID THAT MESSRS FASOLD AND GINGOLD HAD ASKED A NUMBER OF BANKS TO OFFER THEIR PRODUCT BUT WERE TURNED DOWN BECAUSE OF THE INEVITABLE LEGAL BATTLES MR. FASOLD ACKNOWLEDGED THAT HE AND HIS PARTNER HAVE AGREED TO ASSUME A PORTION OF BLACKFEET'S LEGAL COSTS THERE IS A RISK THAT SOMEONE MIGHT SUE BUT THE CHANCES THAT THEY MIGHT PREVAIL ARE VERY LOW MR. FASOLD ASSERTED HE ALSO SUGGESTED INSURERS MAY BE UNWILLING TO SUE A BANK THAT IS OWNED BY AMERICAN INDIANS IF THEY WANT TO JUMP ALL OVER A TWELVE MILLION DOLLAR MINORITY OWNED BANK THAT'S UP TO THEM THE INSURANCE INDUSTRY HOWEVER SEEMS UNDETERRED QUOTE WE CONSIDER THE BANK'S ACTION TO BE AN ATTEMPTED END RUN AROUND CURRENT BANKING AND INSURANCE LAWS QUOTE SAID DICK SCHWEIKER PRESIDENT OF THE AMERICAN COUNCIL OF LIFE INSURANCE IN WASHINGTON WHO ADDED THAT HIS ORGANIZATION WAS QUOTE PREPARED TO EXPLORE ALL LEGAL REMEDIES QUOTE ENDOSONICS CORPORATION SAID THE FOOD AND DRUG ADMINISTRATION GRANTED ITS CARDIOVASCULAR DYNAMICS INCORPORATED UNIT PERMISSION TO MARKET ITS QUOTE BULLETT INFUSION QUOTE CATHETER IN THE U. S. ENDOSONICS SAID ITS CATHETER DELIVERS DRUGS TO PRESELECTED SITES WITHIN THE BODY BETTER THAN SOME OTHER CATHETERS ON THE NASDAQ STOCK MARKET THE COMPANY'S STOCK CLOSED AT SEVEN DOLLARS AND FIFTY CENTS UP SEVENTY FIVE CENTS OR ELEVEN PERCENT MICHAEL S. HESCHEL FIFTY ONE YEARS OLD FORMER GROUP VICE PRESIDENT OF MANAGEMENT INFORMATION SERVICES WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT OF INFORMATION SYSTEMS AND SERVICES AT THIS SUPERMARKET CHAIN HE WILL BE RESPONSIBLE FOR DIRECTING THE COMPANY'S MANAGEMENT INFORMATION SYSTEMS AND COORDINATING LOGISTICS AND RE ENGINEERING PROGRAMS FRENCH THE LANGUAGE OF DIPLOMACY ITALIAN THE LANGUAGE OF TRAGIC OPERA LOVE PORTUGUESE THE LANGUAGE OF AS FAR AS MODERN LANGUAGES GO PORTUGUESE JUST DOESN'T GET ANY RESPECT SO SAYS JEAN PIERRE VAN DETH PRESIDENT OF EXPOLANGUES A PARIS BASED ASSOCIATION THAT ENCOURAGES THE STUDY OF FOREIGN TONGUES BUT IT'S A BUM RAP THAT'S WHY EXPOLANGUES CHOSE TO HIGHLIGHT PORTUGUESE AT ITS NINETEEN NINETY FOUR CONFERENCE LAST WEEK IN PARIS QUOTE IT'S THE LANGUAGE OF TRAVEL ADVENTURE DISCOVERY QUOTE SAYS MR. VAN DETH IN FRENCH HIS PREFERRED TONGUE HE SAYS HE CAN UNDERSTAND PORTUGUESE BUT DOESN'T SPEAK IT PORTUGUESE IS THE WORLD'S EIGHTH MOST SPOKEN LANGUAGE THE NATIVE TONGUE OF ONE HUNDRED EIGHTY THREE MILLION PEOPLE ONLY ABOUT TEN POINT TWO MILLION OF THESE PEOPLE LIVE IN PORTUGAL BUT PORTUGUESE IS THE OFFICIAL LANGUAGE OF BRAZILIANS WHO NUMBER ONE HUNDRED FIFTY FOUR MILLION AS WELL AS THE FOLKS IN MOZAMBIQUE ANGOLA CAPE VERDE GUINEA BISSAU AND SAO TOME E. PRINCIPE THOSE COUNTRIES RECENTLY FORMED THEIR OWN UNION THE COMMUNITY OF PORTUGUESE SPEAKING NATIONS TO INCREASE TIES BETWEEN THEMSELVES AND TO MAKE THEIR VOICES IN PORTUGUESE HEARD ON THE INTERNATIONAL SCENE AMONG EUROPEAN LANGUAGES USED AROUND THE WORLD PORTUGUESE RANKS THIRD BEHIND ENGLISH AND SPANISH SAYS MR. VAN DETH WHO INVITED PORTUGUESE SPEAKING WRITERS AND ROCK MUSICIANS FROM VARIOUS COUNTRIES TO THE EXPOLANGUES CONFERENCE IN PARIS TO SHOWCASE THE LANGUAGE'S FINER POINTS FANS OF PORTUGUESE HAVE ALSO SUCCEEDED IN GETTING LISBON NAMED EUROPE'S CULTURAL CAPITAL OF NINETEEN NINETY FOUR BUT THE LANGUAGE STILL FACES AN UPHILL BATTLE EXCEPT PERHAPS FOR SAMBA AND BOSSA NOVA FEW PORTUGUESE WORDS HAVE WORKED THEIR WAY INTO ENGLISH USAGE YOU WILL FIND PORTUGUESE EXPRESSIONS IN JAPAN BECAUSE WE WERE THE FIRST TO ARRIVE THERE BY SEA SAYS MARIA JOSE RAU OF THE CAMOES PORTUGUESE INSTITUTE IN PARIS SUCH AS WELL MS. RAU COULDN'T REMEMBER ANY OFFHAND EVEN MS. RAU ADMITS PORTUGUESE'S NASAL VOWELS AND SH SOUNDS ARE DIFFICULT FOR NON NATIVE SPEAKERS BUT SPOKEN THE WAY IT IS SAY IN BRAZIL IT CAN BE VERY MELODIOUS IT'S ALMOST SUNG SHE SAYS SO FORGET JAPANESE CHINESE AND ARABIC AND TRY PORTUGUESE MR. VAN DETH URGES QUOTE THIS IS A LANGUAGE OF TODAY A LANGUAGE OF COUNTRIES EMERGING IN IMPORTANCE QUOTE HE SAYS IFINT S. A. THE INTERNATIONAL INVESTMENT ARM OF ITALY'S AGNELLI GROUP SAID IT WILL CHANGE ITS NAME TO THE EXOR GROUP AFTER A SHAREHOLDERS' MEETING IN MARCH THE LUXEMBOURG BASED PORTFOLIO MANAGEMENT COMPANY WHICH OPERATES IN NEW YORK PARIS AND HONG KONG IS AMONG A GROUP OF COMPANIES OWNED BY GIOVANNI AGNELLI CHAIRMAN OF THE AUTO MAKER FIAT COMPANY THE TRANSPORTATION DIVISION OF SIEMENS A. G. THE GERMAN ELECTRONICS GIANT SAID IT WILL BUY THE REMAINING SHARES OF DUEWAG A. G. A STREETCAR AND ELECTRIC TRAIN MAKER SIEMENS WILL OFFER EITHER A YEARLY PAYMENT OF TWENTY TWO POINT OH FIVE MARKS TWELVE DOLLARS AND FIFTY NINE CENTS A SHARE OR A LUMP SUM OF THREE HUNDRED EIGHTY ONE POINT FIVE OH MARKS A SHARE FOR THE REMAINING TWO POINT EIGHT PERCENT OF THE DUEWAG STOCK NOT ALREADY IN SIEMENS CONTROL THE ANNOUNCEMENT SAID BUSINESS STOCKPILES HELD STEADY IN DECEMBER AS COMPANIES CONTINUED TO KEEP A CLOSE EYE ON INVENTORIES DESPITE INCREASING DEMAND THE COMMERCE DEPARTMENT SAID BUSINESS INVENTORIES TOTALED EIGHT HUNDRED SEVENTY FOUR POINT SIX FOUR BILLION DOLLARS IN DECEMBER VIRTUALLY UNCHANGED FROM EIGHT HUNDRED SEVENTY FOUR POINT FIVE FIVE BILLION DOLLARS IN NOVEMBER SALES IN DECEMBER ROSE ZERO POINT EIGHT PERCENT AFTER CLIMBING ONE POINT TWO PERCENT THE MONTH BEFORE THE COMBINATION CAUSED THE INVENTORY TO SALES RATIO THE NUMBER OF MONTHS IT WOULD TAKE TO DEPLETE INVENTORIES AT THE CURRENT SALES PACE TO SLIP TO ONE POINT FOUR THREE FROM ONE POINT FOUR FOUR FOR ALL NINETEEN NINETY THREE INVENTORIES WERE UP THREE POINT OH PERCENT WHILE SALES INCREASED A MORE ROBUST FIVE POINT FOUR PERCENT QUOTE THE WHOLE ECONOMY HAS SIMPLY LEARNED TO OPERATE ON LOWER INVENTORIES QUOTE SAID JOSEPH LIRO CHIEF ECONOMIST OF S. G. WARBURG AND COMPANY SOME INDUSTRIES HAVE MASTERED THE TECHNIQUE BETTER THAN OTHERS FACTORIES HAVE DONE THE BEST JOB MANUFACTURERS' INVENTORIES FELL ZERO POINT SIX PERCENT IN DECEMBER DESPITE A ONE POINT FOUR PERCENT INCREASE IN SALES MERCHANT WHOLESALER INVENTORIES CREPT UP ZERO POINT FOUR PERCENT AND RETAIL INVENTORIES WERE UP ZERO POINT FIVE PERCENT FOR THE MONTH FACTORIES WERE THE ONLY BUSINESS SEGMENT WHOSE INVENTORIES DECLINED FOR THE ENTIRE YEAR DESPITE RISING SALES MR. LIRO SAID THAT THE ONLY THING LIKELY TO REVERSE THE TREND OF LEAN INVENTORIES IS HIGH INFLATION THEN BUSINESSES MAY BUY EXTRA MERCHANDISE TO AVOID PAYING A LOT MORE FOR IT LATER RIGHT NOW WITH INFLATION EXTREMELY WELL BEHAVED THAT DOESN'T SEEM LIKE A LIKELY SCENARIO SEPARATELY IN ITS QUARTERLY FORECAST THE NATIONAL ASSOCIATION OF BUSINESS ECONOMISTS ESTIMATED THAT THE ECONOMY WILL GROW TWO POINT NINE PERCENT IN NINETEEN NINETY FOUR FOURTH QUARTER OVER FOURTH QUARTER AND TWO POINT SEVEN PERCENT IN NINETEEN NINETY FIVE THAT'S IN LINE WITH SEPARATE FORECASTS MADE BY THE CLINTON ADMINISTRATION THE CONGRESSIONAL BUDGET OFFICE AND THE BLUE CHIP ECONOMIC INDICATORS NEWSLETTER THE NABE ALSO FORECAST THAT INFLATION ON THE SAME BASIS WILL RUN AT A THREE POINT ONE PERCENT RATE IN NINETEEN NINETY FOUR AND THREE POINT FOUR PERCENT IN NINETEEN NINETY FIVE THE NINETEEN NINETY FIVE FORECAST FOR INFLATION IS SLIGHTLY HIGHER THAN OTHER ESTIMATES BUT IS STILL MODERATE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN DECEMBER THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED INVESTORS HUNGRY FOR PAPER ARE READY TO SNAP UP THE REPUBLIC OF COLOMBIA'S FIRST YANKEE BOND OFFERING WHICH IS SET TO BE LAUNCHED TODAY IN THE CORPORATE BOND MARKET COLOMBIA IS EXPECTED TO SELL TWO HUNDRED FIFTY MILLION DOLLARS OF TEN YEAR BONDS YANKEE BONDS ARE SECURITIES SOLD BY FOREIGN INVESTORS IN THE U. S. THE BONDS ARE BEING MARKETED WITH A YIELD SPREAD OF ONE POINT FIVE PERCENTAGE POINTS OVER COMPARABLE TREASURYS THROUGH LEAD MANAGER MERRILL LYNCH AND COMPANY THE CORPORATE BOND MARKET WHICH HAS HAD A DEARTH OF NEW ISSUES SEEMS READY AND WILLING TO ABSORB THE DEAL QUOTE THE LACK OF SUPPLY MEANS YOU HAVE TO PLAY QUOTE ONE MUTUAL BOND FUND PORTFOLIO MANAGER SAID MEANWHILE THE PRICE OF THE BENCHMARK THIRTY YEAR TREASURY BOND DROPPED MORE THAN ONE HALF POINT OR MORE THAN FIVE DOLLARS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY SEVEN AND NINE THIRTY SECONDS PARTLY IN RESPONSE TO JITTERS OVER A POSSIBLE TRADE WAR WITH JAPAN THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE ROSE TO SIX POINT FOUR FIVE PERCENT FROM SIX POINT FOUR OH PERCENT ON FRIDAY INVESTORS SEEM TO BE TURNING TO COLOMBIA'S DEBT AS AN ALTERNATIVE TO SIMILARLY RATED U. S. CORPORATE BONDS BECAUSE IT OFFERS A MUCH HIGHER YIELD THE PAPER IS RATED B. A ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND TRIPLE B. MINUS BY STANDARD AND POOR'S CORPORATION YOU'RE GETTING FIFTY PERCENT MORE YIELD SPREAD THAN SIMILARLY RATED U. S. CORPORATE BONDS SAID RAY GOODNER A PORTFOLIO MANAGER AT I. D. S. FINANCIAL SERVICES INCORPORATED FOR EXAMPLE BLACK AND DECKER CORPORATION'S SEVEN POINT FIVE PERCENT BONDS MATURING IN TWO THOUSAND THREE WHICH ARE RATED B. A. ONE BY MOODY'S AND TRIPLE B. MINUS BY S. AND P. TRADE AT ONE POINT ONE SEVEN PERCENTAGE POINTS OVER TREASURYS COLOMBIA'S DEBT IS LIKELY TO BE PRICED AT A MUCH NARROWER YIELD SPREAD OVER TREASURYS THAN THE GLOBAL BONDS SOLD BY ARGENTINA IN DECEMBER THAT ONE BILLION DOLLAR BOND OFFERING WAS PRICED AT NINETY NINE POINT THREE SIX EIGHT TO YIELD EIGHT POINT FOUR SEVEN FOUR PERCENT OR TWO POINT EIGHT PERCENTAGE POINTS OVER TREASURYS THE BONDS HAVE SINCE TRADED UP TO ONE HUNDRED ONE POINT FIVE FIVE FOR AN EIGHT POINT ONE FOUR PERCENT YIELD OR TWO POINT TWO PERCENTAGE POINTS OVER TREASURYS BECAUSE COLOMBIA IS CONSIDERED MORE STABLE THE YIELD SPREAD ON ITS DEBT ISN'T EXPECTED TO NARROW AS DRAMATICALLY AS DID ARGENTINA'S DEBT COLOMBIA'S DEBT IS BEING PRICED AT A NARROW YIELD SPREAD AND THE DEAL WON'T BE AS LIQUID AS ARGENTINA'S JUMBO DEBT OFFERING ONE TRADER NOTED SOME NARROWING WILL OCCUR ONE TRADER COUNTERED BECAUSE OF THE DEAL'S SCARCITY VALUE COLOMBIA ISN'T EXPECTED TO SELL ADDITIONAL DEBT OVER THE NEXT SIX MONTHS BESIDES INVESTMENT GRADE RATINGS SUCH AS COLOMBIA'S DON'T IMPROVE AS RAPIDLY AS JUNK RATINGS ARGENTINA'S BONDS ARE RATED SINGLE B. ONE BY MOODY'S AND DOUBLE B. MINUS BY S. AND P. WE DON'T EXPECT THE RATING FOR COLOMBIA WILL MOVE IN THE NEAR TERM SAID LACEY GALLAGHER A DIRECTOR AT S. AND P. COLOMBIA IS CONSIDERED ONE OF THE MOST STABLE LATIN AMERICAN COUNTRIES WHAT SEPARATES IT FROM OTHER LATIN AMERICAN COUNTRIES IS THE RELATIVE STABILITY OF ITS FISCAL POLICIES UNDER ECONOMIC AND POLITICAL PRESSURE NOTED MS. GALLAGHER AT S. AND P. IN ADDITION IT WAS THE ONLY MAJOR LATIN AMERICAN COUNTRY THAT DID NOT DEFAULT ON ITS DEBT IN THE NINETEEN EIGHTIES THAT SAYS SOMETHING TO THEIR WILLINGNESS TO SERVICE THEIR DEBT UNDER PRESSURE THEY GET CREDIT FOR THAT SHE ADDED QUOTE HERE IS A COUNTRY WITH A CLEAN DEBT RECORD AND AN IMPRESSIVE HISTORY OF ECONOMIC GROWTH QUOTE SAID RAY GOODNER OF I. D. S. WHO PLANS TO BUY THE PAPER IF IT IS SOLD AT THE YIELD SPREAD WHERE IT IS PRESENTLY BEING MARKETED YESTERDAY DUFF AND PHELPS CREDIT RATING COMPANY GAVE THE ISSUE A PRELIMINARY INVESTMENT GRADE RATING OF TRIPLE B. COLOMBIA'S RECORD AS VIRTUALLY THE ONLY LATIN AMERICAN COUNTRY TO MEET ALL OF ITS SCHEDULED DEBT PAYMENTS THROUGH THE NINETEEN EIGHTIES PROVIDES EVIDENCE OF COLOMBIA'S COMMITMENT TO MAINTAIN AN UNBLEMISHED PAYMENTS RECORD SAID DUFF AND PHELPS YESTERDAY COLOMBIA HAS MAINTAINED STEADY ECONOMIC GROWTH AT THE HIGHEST RATE FOR ANY LATIN AMERICAN COUNTRY SINCE NINETEEN EIGHTY SAID THE RATING CONCERN DUFF AND PHELPS SAID THAT GUERRILLA AND DRUG RELATED VIOLENCE IN COLOMBIA RAISES SOME CONCERNS BUT THESE CONCERNS ARE INCORPORATED INTO THE RATING YESTERDAY'S CORPORATE NEW ISSUE MARKET WAS SLUGGISH AS ONLY EIGHT HUNDRED NINETY MILLION DOLLARS OF DEBT WAS PRICED ISSUERS INCLUDED BANQUE PARIBAS WHICH SOLD THREE HUNDRED MILLION DOLLARS OF DEBT OUT OF ITS NEW YORK BRANCH A. N. R. PIPELINE COMPANY WHICH SOLD ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF DEBENTURES AND NORTEK INCORPORATED WHICH SOLD ONE HUNDRED NINETY MILLION DOLLARS OF JUNK BONDS TRADING IN THE SECONDARY MARKET WAS EXTREMELY LIGHT AS THE MARKET SHRUGGED OFF A PLUNGING U. S. DOLLAR TRADING IN THE JUNK BOND MARKET WAS ALSO LIGHT WITH PRICES CLOSING UNCHANGED NORTEK WHICH MAKES BUILDING PRODUCTS AND INDUSTRIAL AND ELECTRICAL PRODUCTS SOLD ONE HUNDRED NINETY MILLION DOLLARS OF TEN YEAR NINE POINT EIGHT SEVEN FIVE PERCENT SENIOR SUBORDINATED NOTES AT NINETY NINE POINT TWO ONE FOUR TO YIELD TEN PERCENT THE BONDS TRADED UP TO PAR FOR A NINE POINT EIGHT SEVEN FIVE PERCENT YIELD BEAR STEARNS AND COMPANY WAS THE LEAD MANAGER FOR THE DEAL WHICH WAS RATED C. A. A. BY MOODY'S AND TRIPLE C. BY S. AND P. SPOOKED BY A PLUNGE IN THE DOLLAR AGAINST THE YEN TRADERS SENT PRICES OF LONGER TERM TREASURY SECURITIES MODERATELY LOWER SECURITIES MATURING IN FIVE YEARS AND LESS MEANWHILE FINISHED LITTLE CHANGED THE DOLLAR TOUCHED A NEARLY SIX MONTH LOW AGAINST THE YEN YESTERDAY TRADERS WORRIED THAT IN RESPONSE TO THE DOLLAR'S STEEP DECLINE JAPANESE INVESTORS WOULD UNLOAD TREASURY SECURITIES BUT THERE WAS LITTLE EVIDENCE THAT TOOK PLACE WITH MOST OF THE DECLINE COMING AT THE HANDS OF SPECULATORS FOR MOST OF THE SESSION TRADING WAS LISTLESS WITH DEALERS FINDING LITTLE REASON TO PUSH THE MARKET SIGNIFICANTLY IN EITHER DIRECTION BUT AT MIDAFTERNOON TRADERS TURNED THEIR ATTENTION TO THE DEVELOPMENTS IN THE FOREIGN EXCHANGE MARKET IN RESPONSE TO CONCERNS THAT JAPANESE INVESTORS MIGHT BEGIN UNLOADING LONG TERM SECURITIES TRADERS BEGAN SELLING TREASURYS FOR JAPANESE BOND HOLDERS A WEAKENING DOLLAR AND A STRENGTHENING YEN WOULD ERODE THE VALUE OF THEIR DOLLAR DENOMINATED HOLDINGS DESPITE THE WIDESPREAD TALK THERE DIDN'T APPEAR TO BE SIGNIFICANT SELLING BY JAPANESE INVESTORS THEY REALLY HAVEN'T BEEN DOING ANYTHING SAID TIM HEATON A BOND TRADER AT NIKKO SECURITIES COMPANY INTERNATIONAL THE TREASURY'S TEN YEAR NOTE ENDED ONE EIGHTH POINT LOWER AT NINETY NINE AND TWENTY FIVE THIRTY SECONDS TO YIELD FIVE POINT EIGHT NINE PERCENT UP FROM FIVE POINT EIGHT SEVEN PERCENT ON FRIDAY SEPARATELY THE TREASURY SOLD THIRTEEN WEEK AND TWENTY SIX WEEK BILLS AT ITS WEEKLY AUCTION HERE ARE THE RESULTS OF THE SALE 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 THREE HUNDRED SIXTY DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A THREE HUNDRED SIXTY FIVE DAY YEAR BOTH ISSUES ARE DATED FEBRUARY SEVENTEENTH THE THIRTEEN WEEK BILLS MATURE MAY NINETEENTH NINETEEN NINETY FOUR AND THE TWENTY SIX WEEK BILLS MATURE AUGUST EIGHTEENTH NINETEEN NINETY FOUR INVESTORS WERE GEARING UP FOR WHAT WILL PROBABLY BE TODAY'S MOST CLOSELY WATCHED DEAL A THREE POINT TWO BILLION DOLLAR OFFERING OF REVENUE ANTICIPATION WARRANTS FROM THE STATE OF CALIFORNIA THE REVENUE ANTICIPATION WARRANTS ARE SHORT TERM SECURITIES THAT CAN MATURE IN THE FOLLOWING FISCAL YEAR SAID A SPOKESWOMAN FOR CALIFORNIA TREASURER KATHLEEN BROWN THEY ARE TO BE REPAID OUT OF ANTICIPATED REVENUES SUCH AS SALES TAXES TODAY'S SALE WILL BE THE LARGEST EVER OF RAWS IN CALIFORNIA INCLUDED IN THE OFFERING ARE ONE POINT TWO BILLION DOLLARS OF SERIES A RAWS WHICH MATURE ON DECEMBER TWENTY FIRST NINETEEN NINETY FOUR AND TWO BILLION DOLLARS OF SERIES B. WARRANTS WHICH MATURE ON JULY TWENTY SIXTH NINETEEN NINETY FOUR MOODY'S INVESTORS SERVICE INCORPORATED HAS RATED THE NINETEEN NINETY FOUR WARRANTS MIG ONE STANDARD AND POOR'S CORPORATION HAS RATED THE SECURITIES S. P. ONE AND FITCH INVESTORS SERVICE INCORPORATED HAS AS SIGNED AN F. ONE PLUS RATING ALTHOUGH CALIFORNIA'S NINETEEN NINETY FOUR REVENUE ANTICIPATION WARRANTS HAVE RECEIVED SOME OF THE HIGHEST SHORT TERM RATINGS GIVEN BY THE MAJOR RATING AGENCIES CONCERNS ABOUT THE STATE'S ECONOMIC CONDITION LINGER STILL STRUGGLING AFTER THE RECESSION CALIFORNIA HAS BEEN HURT BY A STRING OF DISASTERS INCLUDING LAST MONTH'S EARTHQUAKE IN LOS ANGELES FIRES AND MUDSLIDES LAST WEEK S. AND P. REVISED ITS LONG TERM RATING OUTLOOK ON CALIFORNIA TO NEGATIVE FROM STABLE SAYING SIGNIFICANT ECONOMIC AND FISCAL PRESSURES CONTINUE TO HAMPER THE STATE'S EFFORTS TO MAINTAIN FINANCIAL STABILITY PROCEEDS FROM THE SERIES A RAWS WILL BE USED TO HELP ERASE CALIFORNIA'S BUDGET DEFICIT THE SHORTFALL STOOD AT TWO POINT EIGHT BILLION DOLLARS LAST JUNE WHEN THE STATE'S EIGHTEEN MONTH DEFICIT ELIMINATION PLAN WAS APPROVED CALIFORNIA HAS ALREADY WIPED OUT ONE POINT SIX BILLION DOLLARS OF THE DEFICIT AND THE SERIES A WARRANTS ARE EXPECTED TO COVER THE REMAINING ONE POINT TWO BILLION DOLLARS SAID ASSISTANT STATE TREASURER HAL GEIOGUE PROCEEDS FROM THE SERIES B. WARRANTS WILL BE USED FOR THE MANAGEMENT OF CALIFORNIA'S CASH FLOW DURING THE REST OF THE STATE'S NINETEEN NINETY FOUR FISCAL YEAR AND THE START OF FISCAL NINETEEN NINETY FIVE CALIFORNIA'S FISCAL YEAR RUNS FROM JULY FIRST TO JUNE THIRTIETH QUOTE WE'RE OPTIMISTIC THAT THE YIELDS WILL BE BELOW THREE PERCENT QUOTE FOR BOTH SERIES OF RAWS SAID MR. GEIOGUE MEANWHILE MANY MUNICIPAL BONDS DROPPED ONE EIGHTH POINT TO ONE QUARTER POINT YESTERDAY AS THE DOLLAR TUMBLED AGAINST THE YEN IN THE FOREIGN EXCHANGE MARKETS PUSHING TREASURY PRICES LOWER PRICES OF MORTGAGE SECURITIES ENDED ABOUT EVEN AFTER A SLOW SESSION AMONG THE SIX POINT FIVE PERCENT SECURITIES FOR MARCH DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED ONE THIRTY SECOND LOWER AT NINETY EIGHT AND TWENTY SIX THIRTY SECONDS FEDERAL HOME LOAN MORTGAGE CORPORATION GOLD ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED THREE THIRTY SECONDS LOWER AT NINETY EIGHT AND THIRTY ONE THIRTY SECONDS AND NINETY EIGHT AND TWENTY FIVE THIRTY SECONDS RESPECTIVELY INVESTORS OUTSIDE THE DEALER COMMUNITY WEREN'T ACTIVE AT ALL YESTERDAY TRADERS SAID THE PRIMARY MARKET AS EXPECTED WAS QUIET AS SPREADS TO TREASURYS HAVEN'T WIDENED SIGNIFICANTLY IF AT ALL IN THE PAST FEW SESSIONS UNDERWRITERS AREN'T ABLE TO JUSTIFY CREATING NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS BECAUSE BUYING EXPENSIVE MORTGAGE COLLATERAL MEANS LESS OF A PROFIT ON THE REMIC THOMAS D. LAURICELLA CONTRIBUTED TO THIS ARTICLE THOMAS H. CARMODY WAS NAMED TO THE BOARD BRINGING THE TOTAL NUMBER OF DIRECTORS TO NINE AT THIS HOLDING COMPANY INVOLVED IN THE HEATING AND AIR CONDITIONING INDUSTRIES MR. CARMODY FORTY SEVEN YEARS OLD IS VICE PRESIDENT FOR U. S. OPERATIONS OF REEBOK INTERNATIONAL LIMITED MICHAEL BAKER CORPORATION SAID ITS BAKER AND ASSOCIATES UNIT SIGNED FIVE CONTRACTS TOTALING TWENTY TWO MILLION DOLLARS FOR DESIGN SERVICES WITH THE DEFENSE DEPARTMENT THE ENGINEERING CONSTRUCTION AND OPERATIONS AND MAINTENANCE SERVICES COMPANY SAID THE CONTRACTS DO NOT INCLUDE ANY CONSTRUCTION SERVICES INCLUDED ARE AN ELEVEN POINT SIX MILLION DOLLAR CONTRACT FOR ENVIRONMENTAL ASSESSMENT AND DESIGN SERVICES FOR DEFENSE DEPARTMENT DEPENDENT SCHOOLS WORLD WIDE AND A FOUR POINT FIVE MILLION DOLLAR MASTER PLANNING SERVICES CONTRACT FOR THE BALTIMORE DISTRICT CORPS OF ENGINEERS GLOBAL NATURAL RESOURCES INCORPORATED SAID IT SUCCESSFULLY COMPLETED A NATURAL GAS WELL IN THE GULF OF MEXICO OFFSHORE TEXAS GLOBAL SAID ITS WELL NUMBER TWO ON HIGH ISLAND BLOCK TWENTY THREE L. TESTED AT FIVE MILLION CUBIC FEET OF GAS AND ONE HUNDRED SEVENTY THREE BARRELS OF CONDENSATE A DAY FROM DEPTHS OF TEN THOUSAND EIGHTY SIX TO TEN THOUSAND ONE HUNDRED SEVENTY THREE FEET THE OIL AND GAS COMPANY SAID THE WELL WILL BEGIN PRODUCTION IN THE SECOND QUARTER GLOBAL HAS A FIFTY PERCENT WORKING INTEREST IN THE WELL WHICH IT OPERATES CLOSELY HELD HALLHOUSTON OIL COMPANY HOLDS A TWENTY PERCENT WORKING INTEREST APACHE CORPORATION HOLDS TWENTY PERCENT AND EDISTO EXPLORATION AND PRODUCTION COMPANY A UNIT OF EDISTO RESOURCES CORPORATION HOLDS TEN PERCENT A BIG TRADE GROUP FOR HEALTH MAINTENANCE ORGANIZATIONS IS JOINING THE CLINTON ADMINISTRATION'S EFFORT TO BOOST VACCINATION RATES AMONG U. S. CHILDREN THE GROUP HEALTH ASSOCIATION OF AMERICA SAID MORE THAN TWO HUNDRED FIFTY H. M. O.S WILL WORK TOWARD DEVELOPING STRATEGIES FOR RAISING VACCINATION RATES TO NINETY PERCENT BY NINETEEN NINETY SIX CURRENTLY ABOUT SIXTY PERCENT OF CHILDREN ARE FULLY IMMUNIZED WITH DIPHTHERIA TETANUSPERTUSSIS OR DTP POLIO AND MEASLES MUMPS RUBELLA VACCINES AND ONLY ABOUT FORTY PERCENT OF ALL CHILDREN GET THEM ON THE RECOMMENDED SCHEDULE ONE RESULT IN THE THREE YEARS ENDED IN NINETEEN NINETY ONE SOME ONE HUNDRED THIRTY SIX CHILDREN DIED IN MEASLES OUTBREAKS THAT PUBLIC HEALTH OFFICIALS SAY COULD HAVE BEEN PREVENTED WITH BETTER VACCINATION RATES LEGISLATION AIMED AT ACHIEVING THE NINETY PERCENT GOAL WAS PASSED BY CONGRESS LAST YEAR AND OFFICIALS AT THE NATIONAL VACCINE PROJECT IN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES FIGURED H. M. O.S WHICH EMPHASIZE PREVENTIVE CARE COULD HELP LEAD THE EFFORT QUOTE WE NEED SOMEONE OUT FRONT TO DEMONSTRATE THAT IT'S POSSIBLE TO DO IT QUOTE SAID ANTHONY ROBBINS OF THE NATIONAL VACCINE PROJECT UNDER THE PROGRAM PARTICIPATING H. M. O.S WILL DETERMINE THEIR NINETEEN NINETY THREE VACCINATION RATES FOR THEIR MEMBERS TO ESTABLISH A BASELINE SET ANNUAL GOALS FOR IMPROVEMENT AND REPORT ON STRATEGIES THAT WORK AND THOSE THAT DON'T SAID PAMELA MIDDLESTAT DIRECTOR OF MEDICAL AFFAIRS AT GHAA BY DISSEMINATING SUCH INFORMATION EVEN AMONG H. M. O.S THAT MIGHT COMPETE IN LOCAL MARKETS THE HOPE IS THAT OVERALL IMMUNIZATIONS WILL INCREASE AND THAT MODELS FOR BOTH H. M. O.S AND NON H. M. O. ORGANIZATIONS CAN BE DEVELOPED H. M. O.S THAT SERVE MEDICAID PATIENTS WILL BE AMONG THE PARTICIPANTS EXPERIENCE AT SOME TWENTY H. M. O.S OPERATED BY UNITED HEALTHCARE ILLUSTRATES SOME OF THE HURDLES FACING THE INITIATIVE EVEN THOUGH ALL THE H. M. O.S PROVIDE FREE VACCINES RATES AVERAGE ABOUT SIXTY FIVE PERCENT TO SEVENTY PERCENT DOCTOR NEWCOMER SAID A STUDY SHOWED THAT PHYSICIANS FREQUENTLY MISSED OPPORTUNITIES TO VACCINATE CHILDREN WHEN THEY WERE BROUGHT IN FOR OTHER REASONS BUT RESCHEDULING A VISIT WAS DIFFICULT BECAUSE WHILE PARENTS CAN GET TIME OFF FROM WORK TO TAKE A SICK CHILD TO A DOCTOR THEY CAN'T GET TIME OFF TO TAKE A WELL CHILD FOR A SHOT RAGTAG FORCES OPPOSED TO OLIVER NORTH'S U. S. SENATE BID ARE DESPERATELY SEEKING A FEW GOOD MEN AND WOMEN TO ATTEND A CONVENTION IN JUNE THAT WILL NOMINATE THE REPUBLICAN PARTY'S CANDIDATE FOR THE JOB COLLEGE KIDS LED BY THE SON OF A FORMER REPUBLICAN GOVERNOR LOADED WITH REPRINTS OF A DAMAGING ANTI NORTH ARTICLE FROM THE CONSERVATIVE READER'S DIGEST THEY'RE KNOCKING ON DOORS IN NORTHERN VIRGINIA SEEKING SUPPORT EX REAGAN ADMINISTRATION OFFICIALS INCLUDING SECRETARY OF STATE GEORGE SHULTZ AND DEFENSE SECRETARY FRANK CARLUCCI ALARMED AT THE NORTH JUGGERNAUT THEY'RE WRITING CHECKS TO HELP JIM MILLER WHO WAS PRESIDENT REAGAN'S BUDGET DIRECTOR AND IS MR. NORTH'S ONLY SIGNIFICANT G. O. P. OPPONENT DAN CAROL A FORMER OPPOSITION RESEARCH SPECIALIST FOR THE DEMOCRATIC PARTY HE IS BURROWING THROUGH RECORDS AND DOCUMENTS LOOKING FOR DIRT ON MR. NORTH THE FORMER MARINE CORPS LIEUTENANT COLONEL WHO AS A NATIONAL SECURITY COUNCIL STAFFER HELPED TO RUN A COVERT ARMS SUPPLY OPERATION TO SUPPORT ANTI SANDINISTA GUERRILLAS IN NICARAGUA THAT WAS PARTIALLY FUNDED BY PROCEEDS FROM THE SECRET SALE OF ARMS TO IRAN MR. CAROL HAS FORMED A COMMITTEE CALLED OPERATION LAST LAUGH INDEPENDENT EXPENDITURE OR OLLIE PAC TO SPREAD THE BAD NEWS AND FINALLY DUKE THE PILL POPPING WILD TURKEY SWILLING CHARACTER IN THE QUOTE DOONESBURY QUOTE COMIC STRIP HE'S PACKING UP HIS ASSAULT PISTOL AND HEADING THIS WAY PRESUMABLY TO EMBARRASS THE NORTH ENTOURAGE WHILE OSTENSIBLY TRYING TO HELP IT BY ENLISTING AS A BODYGUARD VIRGINIA REPUBLICANS LIKE TO SAY THEIR CONVENTIONS ARE THE WORLD'S LARGEST DEMOCRATIC GATHERINGS THIS YEAR THEY WORRY THE HALL WON'T BE BIG ENOUGH TO HOLD EVERYBODY MORE THAN TEN THOUSAND PEOPLE MAY SHOW UP OWING TO A WIDE OPEN SELECTION PROCESS AND THE INTEREST STIRRED UP BY MR. NORTH'S CANDIDACY MOST OBSERVERS SAY MR. NORTH A SHREWD CHARMING PERFORMER ON THE STUMP ALMOST CERTAINLY WILL WALK AWAY WITH THE CONVENTION'S ENDORSEMENT TO OPPOSE THE LIKELY WINNER OF THE DEMOCRATIC PARTY PRIMARY INCUMBENT SENATOR CHARLES S. ROBB BUT THE FORCES ARGUING THAT MR. NORTH DOESN'T DESERVE TO BE A MEMBER OF THE CONGRESS HE ADMITS HE LIED TO ARE SLOWLY WINNING SOME SERIOUS POINTS A MASON DIXON SLASH MEDIA RESEARCH POLL TAKEN LATE LAST MONTH SHOWED MR. ROBB DEFEATING MR. NORTH FORTY NINE PERCENT TO THIRTY TWO PERCENT IN AUGUST OF LAST YEAR MR. NORTH TRAILED BY ONLY NINE POINTS BUT MR. NORTH IS CONTROVERSIAL EVEN AMONG G. O. P. STALWARTS NOTHING BEING USED AGAINST HIM HURTS MORE THAN AN ARTICLE BY RACHEL WILDAVSKY IN THE JUNE NINETEEN NINETY THREE READER'S DIGEST THE TITLE WAS DOES OLIVER NORTH TELL THE TRUTH AND THE ANSWER UNEQUIVOCALLY WAS NO THE STORY WAS COMMISSIONED BY KENNETH Y. TOMLINSON THE MAGAZINE'S EDITOR IN CHIEF WHO SERVED IN THE REAGAN ADMINISTRATION AS DIRECTOR OF THE VOICE OF AMERICA I'D HEARD OVER THE YEARS FROM PEOPLE WHO WORKED WITH NORTH THAT HE WAS NEVER WHAT HE APPEARED TO BE MR. TOMLINSON SAYS THERE WAS A CREDIBILITY PROBLEM THERE WE TALKED TO A LOT OF PEOPLE AND THEY ALL SAID THEY FELT HE HAD A SERIOUSLY FLAWED CHARACTER THE READER'S DIGEST STORY TRACED A NUMBER OF TALES THAT MR. NORTH HAS TOLD BIG ONES AND LITTLE ONES MANY OF THEM INTIMATING A CLOSER RELATIONSHIP WITH MR. REAGAN THAN LOYAL REAGANITES BELIEVE EVER EXISTED THE ARTICLE STUNG IN WAYS THAT NOTHING THAT HAD APPEARED IN THE NEW YORK TIMES OR THE WASHINGTON POST COULD HAVE DONE MR. NORTH CALLS THE TIMES THE CRIMES AND THE POST THE COMPOST IN A LETTER TO LOYALIST FOLLOWERS HE SAID THE READER'S DIGEST HAS JOINED THESE OTHER PUBLICATIONS THIS QUOTE PACK OF MEDIA JACKALS QUOTE IN A QUOTE VENGEFUL EFFORT TO DESTROY ME QUOTE HE ALSO SAID IT WAS SIGNIFICANT THAT THESE ATTACKS HAD INTENSIFIED FOLLOWING PRESIDENT CLINTON'S PLAN TO ALLOW OPEN HOMOSEXUALS IN OUR ARMED FORCES MR. TOMLINSON NOTES THAT THE SAME EDITION OF HIS MAGAZINE CARRIED AN ARTICLE OPPOSING THE CLINTON PLAN THE READER'S DIGEST ARTICLE HAS BECOME THE PRINCIPAL PIECE OF LITERATURE DISSEMINATED BY DOOR TO DOOR CANVASSERS ALMOST ALL OF THEM COLLEGE STUDENTS FOR A GROUP CALLED CLEAN UP CONGRESS THAT IS RUN BY WOODY HOLTON THE SON OF VIRGINIA'S FIRST G. O. P. GOVERNOR LINWOOD HOLTON IT'S BEEN A VERY POWERFUL PIECE FOR US SAYS THE YOUNGER MR. HOLTON IT'S ESPECIALLY EFFECTIVE WITH THOSE REPUBLICANS WHO BELIEVE IN THE NINTH COMMANDMENT THOU SHALT NOT BEAR FALSE WITNESS AGAINST THY NEIGHBOR MR. MERRITT TO WHOM THE NORTH CAMPAIGN REFERS REQUESTS FOR COMMENT ON THE STOP OLLIE EFFORTS SAYS CLEAN UP CONGRESS HAS NO SUPPORT AMONG REPUBLICAN VOTERS ALL THEY'VE EVER DONE IS TRY TO DEFEAT REPUBLICAN CANDIDATES QUOTE BUT THE OLD REAGAN HANDS WHO ARE BACKING MR. MILLER CAN'T SO EASILY BE DISMISSED THEY ARE PARTICULARLY TROUBLED BY HIS CLAIMS ON MR. REAGAN'S FRIENDSHIP AND AFFECTION HE WAS NEVER CLOSE TO THE PRESIDENT THEY ASSERT THERE'S ONLY ONE REAGAN REPUBLICAN IN THIS RACE SAYS LYN NOFZIGER WHO WAS MR. REAGAN'S CALIFORNIA PRESS SECRETARY AND WHITE HOUSE POLITICAL DIRECTOR AND THAT'S JIM MILLER THE OTHER GUY MR. NORTH IS NOT A REAGAN REPUBLICAN HE WAS NEVER A PART OF OUR ORGANIZATION MR. REAGAN HIMSELF IS STAYING SILENT ON THE MATTER OBSERVING THE G. O. P. ELEVENTH COMMANDMENT THOU SHALT NOT SPEAK ILL OF A FELLOW REPUBLICAN THE FIFTY ONE YEAR OLD MR. MILLER SUCCEEDED DAVID STOCKMAN AS MR. REAGAN'S BUDGET DIRECTOR AND SAW THE POWER OF THE JOB DIMINISH THOUGH MR. MILLER WITH HIS BOISTEROUS MANNER AND LOUD WHISTLING WAS SOMETIMES HARD TO IGNORE IN RECENT YEARS MR. MILLER HAS RUN CITIZENS FOR A SOUND ECONOMY A LOBBYING GROUP THAT HAS FOUGHT FOR LOW TARIFFS AND LOW TAXES BUT HAS COME UNDER CRITICISM FOR SOME OF ITS TACTICS WHEN THE ORGANIZATION CLAIMED THAT LOCAL OUTPOSTS OF SUCH ALL AMERICAN ORGANIZATIONS AS THE BOY SCOUTS GIRL SCOUTS MARCH OF DIMES AND AMERICAN HEART ASSOCIATION HAD SIGNED ON TO FIGHT DETROIT'S PUSH FOR STEEP TARIFFS ON FOREIGN MINIVANS MANY OF THE LOCAL GROUPS COMPLAINED THEY HAD BEEN MISLED MR. MILLER'S MAIN PITCH IN HIS UPHILL SENATE CAMPAIGN IS THAT HE CAN WIN IN THE FALL AND THE CONTROVERSIAL MR. NORTH CANNOT HE GENERALLY AVOIDS TAKING ON MR. NORTH PERSONALLY THAT'S JUST WHAT DAN CAROL THE VETERAN OPPOSITION RESEARCH SPECIALIST IS DEDICATED TO DOING EVERY MONTH OR SO HIS OLLIE PAC ISSUES A NEW CHAPTER OF OLLIE'S FOLLIES IN WHICH HE EXAMINES MR. NORTH'S RECORD HE SHIPS IT OFF TO HIS CONTRIBUTORS AND TO MEMBERS OF THE MEDIA WHILE STOUTLY MAINTAINING THAT MR. CAROL ISN'T A SERIOUS THREAT TO THE CAMPAIGN MR. NORTH'S HANDLERS HAVE PUT TOGETHER A PACKET OF THEIR OWN CALLED DAN CAROL MUDSLINGER ON THE RUN MR. MERRITT THE NORTH SPOKESMAN SAYS THE ANTI OLLIE FORCES MAY MAKE NOISE AND GATHER MEDIA ATTENTION BUT WILL BE DROWNED BY THE PRO NORTH TIDES THAT WILL GIVE THEIR MAN THE NOMINATION COME JUNE QUOTE PUT ALL THOSE ANTI NORTH FOLKS IN A STRETCH LIMOUSINE QUOTE HE SAYS QUOTE AND SEND THEM DOWN TO THE CONVENTION QUOTE COLEMAN COMPANY SAID THAT ITS PRESIDENT AND CHIEF OPERATING OFFICER BOB RING WILL RESIGN EFFECTIVE MARCH FIRST THE CAMPING SUPPLY COMPANY SAID IT DOES NOT INTEND TO FILL THE POSITIONS MR. RING FIFTY ONE YEARS OLD WASN'T AVAILABLE FOR COMMENT A THIRTY TWO YEAR COLEMAN VETERAN MR. RING WAS PASSED OVER FOR THE JOB OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY BROUGHT IN A FORMER BLACK AND DECKER CORPORATION EXECUTIVE MIKE HAMMES TO SUCCEED RETIRING CHAIRMAN LAWRENCE M. JONES AT THE START OF THE YEAR JOE NOLD SENIOR VICE PRESIDENT OF OPERATIONS CHARLES OGDEN SENIOR VICE PRESIDENT OF SALES AND DAVID STEARNS SENIOR VICE PRESIDENT OF MARKETING WILL REPORT DIRECTLY TO MR. HAMMES FOLLOWING MR. RING'S DEPARTURE COLEMAN IS A UNIT OF RONALD PERELMAN'S MACANDREWS AND FORBES HOLDINGS INCORPORATED IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING COLEMAN CLOSED AT TWENTY SEVEN POINT EIGHT SEVEN FIVE DOLLARS DOWN TWELVE POINT FIVE CENTS SPAR AEROSPACE LIMITED SAID ITS COMSTREAM SUBSIDIARY HAS RECEIVED A TEN MILLION CANADIAN DOLLAR SEVEN POINT FIVE MILLION U. S. DOLLARS CONTRACT TO UPGRADE THE TELECOMMUNICATIONS SYSTEM OF INDONESIA IT SAID THE CONTRACT CALLS FOR SPAR TO SUPPLY INDONESIA'S PUBLIC COMMON CARRIER P. T. TELKOM WITH SATELLITE BASED TRUNKING EQUIPMENT TO PROVIDE TOLL QUALITY TELEPHONE SERVICES VIA TWENTY TRANSMISSION LOCATIONS THROUGHOUT THE ISLANDS OF INDONESIA THE CONTRACT IS FINANCED BY A LOAN FROM THE ASIAN DEVELOPMENT BANK SPAR ADDED DAVIDSON AND ASSOCIATES INCORPORATED A PUBLISHER OF EDUCATIONAL SOFTWARE SAID IT LICENSED THE FISHER PRICE LOGO AND PRODUCT NAMES FOR USE IN A NEW LINE OF MULTIMEDIA SOFTWARE FOR CHILDREN AGES THREE TO SEVEN FINANCIAL TERMS OF THE PACT WEREN'T DISCLOSED FISHER PRICE INCORPORATED A MAKER OF INFANT AND PRESCHOOL TOYS IS A SUBSIDIARY OF MATTEL INCORPORATED EL SEGUNDO CALIFORNIA TO HELP SPEED ITS INTERNATIONAL GROWTH AMERICAN TELEPHONE AND TELEGRAPH COMPANY HIRED A PROMINENT ITALIAN COMPUTER EXECUTIVE TO RUN ITS EUROPEAN BUSINESSES PIER CARLO FALOTTI FIFTY ONE YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF A. T. AND T.'S OPERATIONS IN EUROPE THE MIDDLE EAST AND AFRICA UNTIL RECENTLY MR. FALOTTI WAS PRESIDENT AND CHIEF EXECUTIVE OF ASK GROUP INCORPORATED A BIG BUT UNPROFITABLE COMPUTER SOFTWARE COMPANY BASED IN SANTA CLARA CALIFORNIA BUT HE'S BEST KNOWN AS AN EMPIRE BUILDER THE MAN WHO OVERSAW RAPID GROWTH IN EUROPE FOR DIGITAL EQUIPMENT CORPORATION DURING THE NINETEEN EIGHTIES AS ITS TOP EUROPEAN EXECUTIVE AMONG HIS GOALS AT A. T. AND T. MR. FALOTTI SAID IN A TELEPHONE INTERVIEW WILL BE TO DISCUSS EXPANDING COLLABORATION AMONG A. T. AND T. FRANCE'S FRANCE TELECOM AND GERMANY'S DEUTSCHE BUNDESPOST TELEKOM FOR MORE THAN A YEAR THE THREE PHONE GIANTS HAVE BEEN HOLDING INCONCLUSIVE TALKS ON JOINTLY PROVIDING BUSINESS COMMUNICATIONS SERVICES A. T. AND T. BASED IN NEW YORK WANTS THEM AS PARTNERS FOR A THREE HUNDRED FIFTY MILLION DOLLAR FIVE YEAR PLAN IT HAS HATCHED TO EXPAND ITS COMMUNICATIONS NETWORK IN EUROPE BUT ANY SUCH ALLIANCE WOULD STIR A POLITICAL STORM IN PARIS BONN AND BRUSSELS HEADQUARTERS OF THE EUROPEAN UNION WITH MANY COMPETITORS LIKELY TO BRAND IT AS ANTICOMPETITIVE AND TO TRY TO GET REGULATORS TO BLOCK IT MR. FALOTTI'S APPOINTMENT TO THE NEWLY CREATED POST IS PART OF A REORGANIZATION ANNOUNCED IN DECEMBER TO SPEARHEAD GROWTH ABROAD A. T. AND T. IS GROUPING ALL ITS DIVERSE OVERSEAS BUSINESSES INTO THREE UNITS WITH THEIR OWN CHIEF EXECUTIVES ONE EACH FOR EUROPE LATIN AMERICA AND THE ASIA PACIFIC REGION CURRENTLY EUROPE PROVIDES NEARLY TEN PERCENT OF A. T. AND T.'S WORLD WIDE REVENUE PARTLY THROUGH SALES OF COMPUTERS TELEPHONE EXCHANGES AND OTHER ELECTRONICS PRODUCTS BUT FOR A. T. AND T. THE BIG PRIZE WOULD BE A CHUNK OF THE CONTINENT'S COMMUNICATIONS SERVICES MARKET THOUGH GRADUALLY OPENING TO FOREIGNERS SERVICES IN MOST EUROPEAN COUNTRIES ARE STILL DOMINATED BY ONE LOCAL PLAYER SUCH AS DEUTSCHE TELEKOM IN GERMANY THUS A. T. AND T.'S ADVANCES SO FAR HAVE BEEN IN A FEW DEREGULATED NICHES ISSUING TELEPHONE CREDIT CARDS AROUND EUROPE PROVIDING DATA COMMUNICATIONS IN BRITAIN OR HELPING RUN BASIC PHONE SERVICES IN UKRAINE AND PARTS OF POLAND AND RUSSIA AT DIGITAL FROM NINETEEN EIGHTY THREE TO NINETEEN NINETY TWO MR. FALOTTI OVERSAW A NEAR SIXFOLD GROWTH IN ITS ANNUAL REVENUE IN EUROPE TO SIX POINT SEVEN BILLION DOLLARS FROM ABOUT ONE POINT TWO BILLION DOLLARS AS THE EUROPEAN COMPUTER MARKET GREW AND DIGITAL WOOED NEW CUSTOMERS AND BOUGHT SOME SMALLER LOCAL COMPANIES IN HIS LAST YEAR THERE DIGITAL'S EUROPEAN OPERATIONS FELL INTO RED INK ALONG WITH THE REST OF THE MAYNARD MASSACHUSETTS CORPORATION MR. FALOTTI ANNOUNCED HIS RESIGNATION JUST BEFORE DIGITAL FOUNDER KENNETH OLSEN WAS OUSTED BY THE BOARD MICROSOFT CORPORATION STRENGTHENING ITS TIES WITH THE ENTERTAINMENT INDUSTRY REACHED AN AGREEMENT TO ACQUIRE A LEADING SUPPLIER OF TOOLS FOR HOLLYWOOD SPECIAL EFFECTS FOR ABOUT ONE HUNDRED THIRTY MILLION DOLLARS IN STOCK MICROSOFT THE WORLD'S LARGEST SOFTWARE SUPPLIER SAID IT REACHED A DEFINITIVE AGREEMENT TO PURCHASE SOFTIMAGE INCORPORATED A MONTREAL COMPANY THAT IS WIDELY CONSIDERED A LEADER IN SOFTWARE TOOLS THAT HELP MOVIE AND VIDEO MAKERS SPICE UP THEIR PRODUCTIONS WITH SURREAL OR FANTASTIC IMAGERY SOFTIMAGE'S TOOLS FOR INSTANCE WERE USED IN THE MAKING OF SPECIAL EFFECTS CONTAINED IN THE MOVIE QUOTE JURASSIC PARK QUOTE AND IN MANY VIDEO GAMES THE TERMS OF THE DEAL REQUIRE THE APPROVAL OF SOFTIMAGE'S SHAREHOLDERS BUT EMPLOYEES OWN ABOUT THIRTY PERCENT OF THE COMPANY MICROSOFT'S OFFER WHICH WILL END UP AT TWENTY ONE DOLLARS TO TWENTY FOUR DOLLARS A SHARE IS WELL ABOVE SOFTIMAGE'S RECENT STOCK PRICE OF ABOUT FIFTEEN DOLLARS A SHARE IN ITS FISCAL YEAR ENDED LAST OCTOBER SOFTIMAGE EARNED TWO POINT NINE MILLION DOLLARS ON SALES OF TWENTY EIGHT POINT NINE MILLION DOLLARS ON THE NASDAQ STOCK MARKET YESTERDAY SOFTIMAGE CLOSED AT FIFTEEN POINT ONE TWO FIVE DOLLARS UP TWELVE POINT FIVE CENTS MICROSOFT CLOSED AT SEVENTY NINE POINT ONE TWO FIVE DOLLARS UP THIRTY SEVEN POINT FIVE CENTS MICROSOFT BASED IN REDMOND WASHINGTON CURRENTLY DOESN'T OFFER ANY PROFESSIONAL TOOLS FOR MOVIE MAKING SO THE PURCHASE GIVES IT A BOOST AS IT TRIES TO INCREASE ITS PRESENCE IN ENTERTAINMENT BUSINESSES BUT THE FIT BETWEEN THE TWO COMPANIES IS ROUGH SOFTIMAGE MAKES ITS TOOLS FOR SILICON GRAPHICS INCORPORATED'S BRAND OF WORKSTATIONS WHICH ARE SPECIALIZED COMPUTERS MICROSOFT DOESN'T OFFER ANY SOFTWARE FOR WORKSTATIONS AND A SOFTIMAGE EXECUTIVE ACKNOWLEDGED THAT SOFTIMAGE HAD NO PLANS TO ADAPT ITS SOFTWARE FOR PERSONAL COMPUTERS STILL THE DEAL REFLECTS THE ABILITY OF MICROSOFT WITH A BUOYANT STOCK AND CASH IN EXCESS OF TWO BILLION DOLLARS TO QUICKLY POSITION ITSELF AS A SUPPLIER TO BOTH PRODUCERS AND CONSUMERS OF VISUAL MEDIA IN A RECENT INTERVIEW MICROSOFT CHAIRMAN WILLIAM GATES SAID THAT THE COMPANY WAS VIGOROUSLY PURSUING GROWTH OPPORTUNITIES IN THE SO CALLED MULTIMEDIA FIELD WHERE SOUND IMAGES AND MOVING PICTURES ARE MESHED TOGETHER WITH THE HELP OF COMPUTERS AND SOFTWARE YESTERDAY CRAIG MUNDIE WHO OVERSEES MICROSOFT'S ADVANCED CONSUMER TECHNOLOGY GROUP SAID SOFTIMAGE'S TECHNOLOGY WILL HELP MICROSOFT SHARE IN MARKETS SPAWNED BY THE SO CALLED INFORMATION HIGHWAY FRENCH OIL COMPANY SOCIETE NATIONALE ELF AQUITAINE SAID YESTERDAY IT WILL PURSUE PLANS TO BUILD A NEW TEN MILLION TON REFINERY AT LEUNA IN EASTERN GERMANY ONLY IF FUTURE PARTNERS IN THE VENTURE WILL ALLOW IT TO TAKE A MINORITY STAKE THE MOVE IS THE LATEST TWIST IN A DISPUTE BETWEEN ELF AND THE TREUHANDANSTALT THE GERMAN PRIVATIZATION AGENCY OVER THE EXTENT OF ELF'S COMMITMENT TO THE PROJECT ELF SAYS THAT ECONOMIC CONDITIONS HAVE CHANGED SINCE NINETEEN NINETY TWO WHEN IT ORIGINALLY AGREED TO TAKE A TWO THIRDS STAKE IN THE REFINERY PROJECT ITS PARTNER GERMAN TRADING COMPANY THYSSEN HANDELSUNION A. G. HAD SAID IT WOULD TAKE ONE THIRD ELF HAS SAID IT WANTS PARTNERS TO ALLEVIATE ITS BURDEN ELF AND THYSSEN ACQUIRED THE LEUNAWERKE A. G. REFINERY AND THE MINOL A. G. FILLING STATION NETWORK FROM THE TREUHANDANSTALT THEIR SELECTION AS THE WINNING BIDDER WAS LINKED TO COMMITMENTS TO MODERNIZE THE NETWORK UPGRADE THE EXISTING REFINERY AND BUILD A NEW PLANT AT LEUNA THE TOTAL INVESTMENT WAS ESTIMATED AT SIX BILLION MARKS THREE POINT FOUR THREE BILLION DOLLARS TO SEVEN BILLION MARKS AN ELF SPOKESMAN WOULDN'T SAY WHETHER THE COMPANY HAD ACTUALLY FOUND ANY OTHER PARTNERS WILLING TO PARTICIPATE ON A MINORITY OR OTHER BASIS A SPOKESWOMAN FOR TREUHAND SAID THE AGENCY HAD NO COMMENT OTHER THAN THAT TALKS WITH ELF ARE CONTINUING WITH THE NEXT MEETING SCHEDULED FOR THURSDAY WILLIAMS COMPANIES WILTEL COMMUNICATION SYSTEMS UNIT AGREED TO BUY OFFICE TELEPHONE EQUIPMENT SALES AND SERVICE OPERATIONS IN TWENTY NINE STATES FROM BELLSOUTH CORPORATION'S BELLSOUTH COMMUNICATION SYSTEMS UNIT TERMS WEREN'T DISCLOSED SERVICE CORPORATION INTERNATIONAL AGREED TO ACQUIRE LE PINE HOLDINGS PROPRIETARY LIMITED MELBOURNE AUSTRALIA TERMS WEREN'T DISCLOSED MORRISON KNUDSEN CORPORATION WON A CONTRACT VALUED AT ONE HUNDRED TEN MILLION DOLLARS TO DESIGN AND DEVELOP A WASTE WATER TREATMENT PLANT IN PORT SAID EGYPT FIELDCREST CANNON INCORPORATED SAID IT WILL SPEND NINETY MILLION DOLLARS ON A NEW THREE HUNDRED TWENTY EIGHT THOUSAND SQUARE FOOT TOWEL WEAVING PLANT IN PHENIX CITY ALABAMA ALEXANDER AND ALEXANDER SERVICES INCORPORATED ESTABLISHED A BUSINESS UNIT IN MEXICO CITY TO SUPPORT RISK AND INSURANCE NEEDS OF CUSTOMERS IN THE REGION IT RECENTLY PURCHASED AN EIGHTY PERCENT INTEREST IN ASESORES KENNEDY AGENTE DE SEGUROS S. A. MEXICO TEXAS ISN'T THE FIRST STATE TO AWARD A CONTRACT FOR A STATEWIDE ELECTRONIC BENEFITS TRANSFER SYSTEM AS WAS STATED IN AN ARTICLE FRIDAY MARYLAND ALREADY HAS A SYSTEM THE CLAIM THAT TEXAS WAS FIRST WAS MADE BY A SPOKESMAN FOR GTECH HOLDINGS CORPORATION THE CONTRACT WINNER HORIZON HEALTHCARE CORPORATION WILL PAY GREENERY REHABILITATION GROUP INCORPORATED SHAREHOLDERS ZERO POINT TWO FIVE SHARE OF HORIZON STOCK FOR EACH GREENERY SHARE HELD AN ARTICLE YESTERDAY INCORRECTLY STATED THAT GREENERY SHAREHOLDERS WILL RECEIVE ONE HORIZON SHARE FOR EVERY GREENERY SHARE I. D. B. MOBILE COMMUNICATIONS INCORPORATED IS A JOINT VENTURE OF I. D. B. COMMUNICATIONS GROUP INCORPORATED AND TELEGLOBE INTERNATIONAL INCORPORATED OF CANADA IN AN ARTICLE THURSDAY I. D. B. COMMUNICATIONS WAS MISIDENTIFIED RAW STEEL PRODUCTION BY THE NATION'S MILLS FELL TWO POINT NINE PERCENT LAST WEEK TO ONE MILLION EIGHT HUNDRED FIVE THOUSAND TONS FROM ONE MILLION EIGHT HUNDRED FIFTY NINE THOUSAND TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE ZERO POINT SIX PERCENT FROM THE ONE MILLION SEVEN HUNDRED NINETY FIVE THOUSAND TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED EIGHTY SEVEN POINT SIX PERCENT OF ITS CAPABILITY LAST WEEK COMPARED WITH NINETY POINT THREE PERCENT THE PREVIOUS WEEK AND EIGHTY FOUR POINT NINE PERCENT A YEAR AGO THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK WIENER MAGAZINE IS NOT ABOUT HOT DOGS OH DEAR NO IT IS ABOUT THE LIFE AND TIMES OF VIENNA WHICH IN GERMAN IS CALLED WIEN AND THE CITY'S RESIDENTS KNOWN AS WIENERS IT HAS NEVER EVER PUBLISHED A PARAGRAPH ABOUT WIENERS FOR IN WIEN YOU SEE THERE ARE NO WIENERS QUOTE CERTAINLY NOT QUOTE SNIFFS GEORG BERNERT OF THE VIENNA BUTCHERS' GUILD NO WIENER WOULD WALK INTO A BUTCHER SHOP AND ORDER A COUPLE OF WIENERS OF COURSE NOT A WIENER WOULD WALK INTO A BUTCHER SHOP AND ORDER A COUPLE OF FRANKFURTERS SAYS MR. BERNERT IN WIEN WE HAVE ALWAYS CALLED WIENERS FRANKFURTERS IN FRANKFURT THE FRANKFURTERS NATURALLY CALL THE VIENNA FRANKFURTER WHICH IS A MIXTURE OF BEEF AND PORK A WIENER BUT FRANKFURT HAS ANOTHER DACHSHUND SHAPED SAUSAGE THIS ONE ALL PORK THAT THE FRANKFURTERS CALL A FRANKFURTER WHY NOT WE FRANKFURTERS HAVE NO PROBLEM CALLING A FRANKFURTER A FRANKFURTER BOASTS THEO WERSHOVEN GENERAL MANAGER OF THE GERMAN BUTCHERS' ASSOCIATION QUOTE SOME CITIES HAVE A SOCCER TEAM THAT CARRIES THE NAME OF THE CITY AROUND THE WORLD FRANKFURT HAS A SAUSAGE ARE THE WIENERS NOT SO PROUD OF THEIR SAUSAGE IT'S EASY FOR THE FRANKFURTERS TO TALK FOR IT IS MUCH SIMPLER TO GO THROUGH LIFE AS A FRANKFURTER OR A HAMBURGER OR A BERLINER JELLY DOUGHNUT FOR THAT MATTER NONE OF THOSE NAMES HAVE TAKEN ON THE UNSAVORY MEANINGS IN OTHER LANGUAGES THAT WIENER HAS IN ENGLISH THUS PRESIDENT KENNEDY COULD STAND UP IN WEST BERLIN AND DECLARE HIMSELF TO BE A JELLY DOUGHNUT WHILE NO AMERICAN PRESIDENT WOULD RISE BEFORE AN ENTIRE CITY AND SHOUT ICH BIN EIN WIENER BUT THAT ISN'T WHY THE WIENERS CALL THE WIENER A FRANKFURTER NO ONE HERE IS INSULTED TO BE CALLED A WIENER WE'RE ALL WIENERS LAUGHS MR. BERNERT TO EXPLAIN MR. BERNERT PRODUCES A FILE STUFFED WITH SAUSAGE LORE AS HE OPENS IT YELLOWING PAPERS SPILL ONTO HIS DESK TAKING THE TALE BACK TO THE HEYDAY OF THE AUSTRO HUNGARIAN MONARCHY IT IS ONE THOUSAND SEVEN HUNDRED EIGHTY NINE JOHANN GEORG LAHNER A PENNILESS BUTCHER'S APPRENTICE IN GERMANY HOPS A BARGE FLOATING DOWN THE DANUBE TO SEEK HIS FORTUNE IN VIENNA IN HIS NEW HOME HE OPENS A HUMBLE MEAT SHOP ONE DAY IN ONE THOUSAND EIGHT HUNDRED FIVE HE THROWS SOME BEEF AND PORK TOGETHER INTO A POT STIRS IN A COMBINATION OF SPICES AND PRODUCES A NEW SAUSAGE AS A TRIBUTE TO FRANKFURT WHERE HE HAD LEARNED HIS SKILLS HE DUBS HIS CREATION THE FRANKFURTER WHICH IS JUST FINE WITH NINETEENTH CENTURY WIENERS RESIDENTS OF A CITY CONSIDERED THE EPITOME OF CIVILIZATION BESIDES IMPERIAL VIENNA ALREADY HAS A HEARTY GASTRONOMICAL AMBASSADOR THE WIENER SCHNITZEL NOT THAT THE WIENERS ARE SAUSAGE SNOBS ACTUALLY THE WIENERS LOVE THEIR FRANKFURTERS THEY EAT THEM BOILED FRIED OR GRILLED WITH MUSTARD KETCHUP OR HORSERADISH THEY EAT THEM WEARING TUXEDOS AND THEY EAT THEM WEARING LEDERHOSEN JOHANN STRAUSS CHOMPS ON FRANKFURTERS WHILE COMPOSING HIS WALTZES KAISER FRANZ THE SECOND THE EMPEROR HIMSELF TOSSES THEM BACK FOR BREAKFAST A PRACTICE CONTINUED BY KAISER FRANZ JOSEPH WHO WASHES THEM DOWN WITH A COUPLE OF BEERS MEANWHILE THE SAUSAGE FROM WIEN IS MAKING ITS WAY THROUGH THE EMPIRE AND BEYOND IN THESE DISTANT UNCOUTH REACHES A GREAT PARADOX IS BORN THE SAUSAGE THAT THE WIENERS CALL A FRANKFURTER IS CALLED A WIENER FOR THE CITY WHENCE IT CAME BY EVERYONE ELSE SOON THE WIENERS THEMSELVES FORGET THAT THEIR FRANKFURTER CAME FROM WIEN SO IN NINETEEN FIFTY FIVE THE BUTCHERS OF THE CITY TAKE IT UPON THEMSELVES TO REMIND EVERYONE WITH A BIG PARTY CELEBRATING THE WIENER FRANKFURTER'S ONE HUNDRED FIFTIETH BIRTHDAY THEY RENT THE VIENNA CONCERT HOUSE THE POLICE ORCHESTRA AND THE SLAUGHTERHOUSE BAND PLAY WALTZES THE CITY'S BUTCHERS DONATE MONEY TO THE VIENNA ORPHANAGE A POEM TITLED THE SAUSAGE REVUE IS RECITED COME FROM AUSTRIA EVERY YEAR EAT THE WURST AT TEN A. M. AND THEY WON'T FORGET AGAIN QUOTE ALAS THE WIENERS FORGET AGAIN IN FACT MODERN WIENERS HAVE TAKEN TO STICKING THEIR FRANKFURTER IN A BUN AND CALLING IT OF ALL THINGS A HOT DOG IN FRANKFURT BY CONTRAST THE ALL PORK FRANKFURTER OCCUPIES AN HONORED PLACE ALMUTH WESTECKER PART OF A TEAM THAT NURTURES THAT CITY'S IMAGE ENTHUSIASTICALLY OFFERS A GLOSSY HARD COVER BOOK PUBLISHED BY ONE OF THE CITY'S FRANKFURTER MAKERS DEDICATED TO THE SAUSAGE THE BOOK GLOWS WITH THE FRANKFURTERS' PRIDE IN THEIR FRANKFURTER IN NINETEEN OH FIVE FOR INSTANCE WHEN THE HESSIAN FIELD ARTILLERY REGIMENT WAS GIVEN THE NAME FRANKFURT AN ARTIST PROUDLY PROPOSED THAT THE SOLDIERS WEAR EPAULETS DEPICTING A PAIR OF FRANKFURTERS AND A POT OF MUSTARD THEY NEVER DID IN NINETEEN TWENTY NINE THE FRANKFURTERS APPALLED THAT SAUSAGES OF LESSER QUALITY BEARING THEIR NAME WERE BEING MARKETED AROUND THE WORLD TRIED IN VAIN TO PROTECT THEIR SAUSAGES WITH A DESIGNATION OF ORIGIN TRADEMARK MEANING THAT ONLY BUTCHERS IN THE FRANKFURT REGION COULD REALLY MAKE FRANKFURTERS THE FRANKFURTERS STAND BY THEIR FRANKFURTERS WE DON'T HAVE SUCH LOFTY IDEALS AS THE KAISER CITY SAYS MS. WESTECKER WINKING TOWARD WIEN WE HAVE NO ARISTOCRATIC TRADITION HERE WE APPRECIATE THAT THE FRANKFURTER IS A SYMBOL OF FRANKFURT QUOTE IN VIENNA THERE IS NO BOOK NO TRADEMARK EXALTING THE WIENER AT CITY HALL THE BOASTING IS OF THE WIENER SCHNITZEL AND THE WIENER STRUDEL THE WIENER WALTZES AND THE WIENER OPERA PROBABLY ONE REASON WE'VE NEVER THOUGHT ABOUT PROMOTING WIEN WITH THE WIENER SHRUGS JUTTA WIPPLINGER OF THE VIENNA TOURIST BOARD IS THAT IN WIEN A WIENER IS A FRANKFURTER ONE OF THESE DAYS THOUGH THE WIENERS MAY BE FORCED TO OWN UP TO WHAT ONE OF THEIR RENDERING MACHINES WROUGHT AUSTRIA IS CAMPAIGNING TO JOIN THE EUROPEAN UNION WHICH IS CONTEMPLATING A LAW REGULATING DESIGNATION OF ORIGIN TRADEMARKS IF THE LAW IS ADOPTED RESERVING THE WORD FRANKFURTER ONLY FOR THE SAUSAGES MADE IN FRANKFURT AND IF AUSTRIA IS ACCEPTED INTO THE E. U. WELL THEN THEN SAYS DIETER STANG SALES DIRECTOR OF HANS WIRTH K. G. ONE OF ONLY THREE COMPANIES IN THE FRANKFURT AREA THAT MAKE THE TRUE FRANKFURTER THE VIENNESE WOULD HAVE TO CALL THEIR FRANKFURTERS WIENERS FOR THE WIENERS IT IS THE WURST CASE SCENARIO A JAGUAR PEACEABLY COEXISTS WITH A LLAMA A WOLF BLITHELY IGNORES A SHEEP AN EAGLE GENTLY LANDS NEAR A RABBIT LEAVING THE FUZZY TAILED CREATURE UNDISTURBED THE TELEVISION SPOT WHICH COULD BE A PUBLIC SERVICE ANNOUNCEMENT FOR BROTHERHOOD IS ACTUALLY A COMMERCIAL FOR JOHN HANCOCK MUTUAL LIFE INSURANCE THE SUGAR COATED MESSAGE EVERY TWO YEARS THE WORLD'S COUNTRIES PUT ASIDE DIFFERENCES AND COME TOGETHER TO COMPETE IN THE OLYMPIC GAMES QUOTE AT JOHN HANCOCK IT IS OUR HOPE THAT SOMEDAY THIS IS WHAT REAL LIFE WILL BE QUOTE THE VOICEOVER SAYS MANY COMPANIES USE THE OLYMPICS TO PROMOTE THEIR OWN PROWESS OR PRODUCTS FOR INSTANCE INTERNATIONAL BUSINESS MACHINES' COMMERCIALS TELL HOW OLYMPICS OFFICIALS RELY ON I. B. M. TECHNOLOGY TO RECORD ATHLETES' PERFORMANCE AND THERE'S NO MISTAKING WHAT'S BEING PITCHED IN COCA COLA'S OLYMPIC THEMED ADS HOWEVER JOHN HANCOCK AND ITS BOSTON AD AGENCY HILL HOLLIDAY CONNORS COSMOPULOS DECIDED TO ABANDON THE OBVIOUS BY GAMBLING ON A SIMPLE BUT ATTENTION GRABBING SOFT SELL MESSAGE DAVID D'ALESSANDRO SENIOR VICE PRESIDENT OF JOHN HANCOCK FINANCIAL SERVICES THE PARENT COMPANY SEES THE OLYMPICS AS A MARKETING TOOL TO PUSH BRAND AWARENESS A FAMILIAR MANTRA ON MADISON AVENUE THE OLYMPICS REPRESENT THE HIGHEST LEVEL OF ATHLETIC ACHIEVEMENT TRUST AND CREDIBILITY HE SAYS SYMBOLIZING WHAT WE SELL IN OUR BUSINESS STILL SOME MARKETING EXPERTS QUESTION THE WISDOM OF SUCH A SUBTLE AD CAMPAIGN THE VIEWER IS MORE INTERESTED IN WHAT'S IN IT FOR ME AND THIS COMMERCIAL DOESN'T ANSWER THAT QUESTION SAYS HAL ROSS PRESIDENT OF MAPES AND ROSS A COMMUNICATIONS RESEARCH COMPANY IN PRINCETON N. J. THERE IS NO REAL LINK BETWEEN HANCOCK AND THE CUSTOMER YES PEOPLE WILL ACCEPT THE MESSAGE BUT THIS IS A COMMERCIAL THAT COULD JUST AS EASILY BE FOR COKE OR ANY OTHER PRODUCT IT'S A NICE PLEASANT MESSAGE BUT I'M NOT SURE WHAT THE LONGTERM GAIN FOR HANCOCK WILL BE JOHN HANCOCK IS SPENDING ABOUT SEVEN MILLION DOLLARS TO ADVERTISE ON C. B. S.'S PRIME TIME COVERAGE OF THE WINTER OLYMPICS FROM LILLEHAMMER NORWAY WHICH BEGAN SATURDAY THE NINETEEN NINETY FOUR WINTER OLYMPICS IS THE FIRST OF A FOUR YEAR DEAL THAT BEGAN IN JULY NINETEEN NINETY THREE IN THE CONTRACT TERMS OF WHICH WEREN'T DISCLOSED HANCOCK IS THE OFFICIAL LIFE INSURANCE SPONSOR OF THE GAMES A HANCOCK SPOKESMAN SAYS IT IS FAIR TO ASSUME THAT THE COMPANY WILL ALSO BUY COMMERCIAL TIME ON THE NINETEEN NINETY SIX SUMMER GAMES IN ATLANTA WHICH WILL BE BROADCAST ON GENERAL ELECTRIC'S N. B. C. NETWORK HANCOCK CAN'T PROMOTE ITS OTHER FINANCIAL SERVICES BECAUSE IT IS THE EXCLUSIVE LIFE INSURANCE SPONSOR ONLY THERE IS NO EXCLUSIVE FINANCIAL SERVICES SPONSOR A HANCOCK SPOKESMAN SAYS BECAUSE IT IS QUOTE TOO EXPENSIVE QUOTE HANCOCK SKIRTED THE ISSUE BY MAKING SOME OF ITS ADS GENERIC WITH THE SLOGAN REAL LIFE REAL ANSWERS THE SPOKESMAN NOTES ALL OUR SERVICES WILL GET A BOUNCE OUT OF THE ADS ALTHOUGH JOHN HANCOCK ADVERTISED ON THE OLYMPICS IN PAST YEARS EARLIER COMMERCIALS WERE PRODUCT ORIENTED THIS TIME WHILE THE CREATIVE APPROACH VARIES ALL THE HANCOCK ADS ARE SENTIMENTAL AND LOW KEY IN FACT THREE OF THEM ARE DEVOID OF ANY PICTURES INSTEAD JUST A NAME AGE AND OCCUPATION POP UP ON A BLACK SCREEN AS A VOICEOVER READS OPTIMISTIC PROSE EXAMPLE ZOE COSTELLO A NINE YEAR OLD THIRD GRADER SAYS THE COOLEST PART WERE A LOT OF ATHLETES MY AGE THE WHOLE WORLD WAS ROOTING FOR THEM IT MADE ME FEEL LIKE I COULD DO SOMETHING GREAT RIGHT NOW QUOTE OTHER THAN THE TONE THE ADS STRIKINGLY RESEMBLE THOSE FROM AETNA LIFE AND CASUALTY WHICH ALSO FEATURE WORDS ON AN OTHERWISE BLANK SCREEN WHETHER OR NOT THE ADVERTISING WORKS THE TIE IN WITH THE OLYMPICS ALREADY HAS HELPED BOOST INTERNAL INCENTIVE PROGRAMS AT HANCOCK THE COMPANY CONDUCTS CONTESTS IN WHICH TOP PERFORMING AGENTS WIN TRIPS TO SUCH SPOTS AS PARIS ROME AND HAWAII USUALLY ABOUT SIXTY AGENTS WHO RECEIVE ONE HUNDRED THOUSAND DOLLARS IN COMMISSIONS THEIR FIRST YEAR MEANING THEY SELL ABOUT TWO HUNDRED FIFTY THOUSAND DOLLARS WORTH OF LIFE INSURANCE PREMIUMS WIN THE TRIPS THIS YEAR ONE HUNDRED TWENTY AGENTS QUALIFIED TO MAKE THE TREK TO LILLEHAMMER MR. D'ALESSANDRO SAYS THAT'S MOTIVATION HE BELIEVES THE OLYMPICS INCENTIVE HELPED THE COMPANY'S LIFE INSURANCE BUSINESS OUTPACE THE INDUSTRY HANCOCK CITING FIGURES FROM THE LIFE INSURANCE MARKETING AND RESEARCH ASSOCIATION IN FARMINGTON CONNECTICUT SAYS ITS TOTAL LIFE INSURANCE SALES GREW FOURTEEN PERCENT BETWEEN JANUARY AND NOVEMBER NINETEEN NINETY THREE COMPARED WITH THE YEAR EARLIER PERIOD WHILE THE INDUSTRY'S GROWTH RATE WAS ABOUT THREE PERCENT THIS IS A SALES PUSH BUSINESS SAYS MR. D'ALESSANDRO WE WANT OUR LOGO THE BOLD SIGNATURE OF MR. HANCOCK MARRIED WITH THE OLYMPIC RINGS TOGETHER IT MAKES FOR A POTENT MARKETING DUO FORD MOTOR COMPANY'S LINCOLN MERCURY DIVISION SIGNED UP TO ADVERTISE ON THE INTERNET NETWORK VIA A TWENTY FOUR HOUR ELECTRONIC CAR SHOWROOM MARKING PERHAPS THE FIRST BY A MAJOR MARKETER TO REACH WIRED CONSUMERS ON THE GLOBAL COMPUTER NETWORK LINCOLN MERCURY IS SETTING UP SHOP ON THE ELECTRONIC NEWSSTAND AN ELECTRONIC MAGAZINE SUBSCRIPTION SERVICE BROWSERS CAN CHOOSE TO ENTER THE CYBER SHOWROOM VIA THE NEWSSTAND'S MAIN MENU SAID JEFFREY DEARTH CHIEF EXECUTIVE OF THE ELECTRONIC NEWSSTAND AND PRESIDENT OF THE NEW REPUBLIC A WASHINGTON MAGAZINE PUBLISHER OTHER QUOTE BUSINESS INFORMATION CENTERS QUOTE ARE UNDER DISCUSSION HE SAID WITH ADVERTISERS IN AIRLINES FINANCIAL SERVICES AND COMPUTERS NEW REPUBLIC INCORPORATED FOUNDED THE ELECTRONIC NEWSSTAND IN JULY AS A JOINT VENTURE WITH INTERNET COMPANY A CAMBRIDGE MASSACHUSETTS TECHNICAL SERVICES COMPANY THE SERVICE STARTED WITH EIGHT MAGAZINES REPRINTING ARTICLES FOR USERS TO READ FOR FREE AND ALSO TAKING SUBSCRIPTION ORDERS NOW SIXTY MAGAZINES PARTICIPATE AND THE NEWSSTAND AVERAGES THIRTY THOUSAND ACCESSES A DAY MR. DEARTH SAID LINCOLN MERCURY PLANS TO REPRINT CATALOGS AND BROCHURES CAR REVIEWS AND LEASING AND PRICING INFORMATION ABOUT ITS MODELS SAID KEVIN HOLOWICKI A VICE PRESIDENT AT LINCOLN MERCURY'S AD AGENCY YOUNG AND RUBICAM IT'S NOT INTRUSIVE MR. HOLOWICKI SAID WE MAY NOT BE FLOODED WITH INQUIRIES BUT THE ONES WE GET WILL BE FROM THE RIGHT PEOPLE ADVERTISERS WILL WATCH CLOSELY FOR NEGATIVE REACTION FROM INTERNET USERS MR. DEARTH SAID HE ISN'T EXPECTING ANY NO ONE HAS TO GO IN THERE HE SAID IT'S A PASSIVE CONSUMER FRIENDLY APPROACH TO ADVERTISING THE COST TO LINCOLN MERCURY IS SEVENTEEN THOUSAND FIVE HUNDRED DOLLARS A YEAR HE SAID SMITH BARNEY SHEARSON FORMED LAST YEAR WITH THE MERGER OF SMITH BARNEY HARRIS AND UPHAM AND SHEARSON LEHMAN BROTHERS PUT ITS ESTIMATED TWENTY MILLION DOLLAR AD ACCOUNT IN REVIEW A COMPANY SPOKESMAN SAID CONFIRMING REPORTS IN TRADE PUBLICATIONS INCUMBENT OGILVY AND MATHER A UNIT OF W. P. P. GROUP IS DEFENDING THE ACCOUNT THE SPOKESMAN SAID LESS THAN A YEAR AFTER WINNING IT FOLLOWING THE MERGER OTHER AGENCIES CONTACTED ABOUT TAKING PART IN THE REVIEW ARE B. B. D. O. AND D. D. B. NEEDHAM BOTH UNITS OF OMNICOM GROUP INTERPUBLIC GROUP'S MCCANN ERICKSON YOUNG AND RUBICAM AND SAATCHI AND SAATCHI'S C. M. E. KHBB INDUSTRY EXECUTIVES SAID SMITH BARNEY SHEARSON IS A UNIT OF TRAVELERS INCORPORATED NEW YORK HEFTY MOBIL CHEMICAL COMPANY A UNIT OF MOBIL CORPORATION MOVED ITS ESTIMATED SEVEN MILLION DOLLARS HEFTY PLASTIC TRASH BAGS FROM MINNEAPOLIS AGENCY FALLON MCELLIGOTT TO JORDAN MCGRATH CASE AND TAYLOR NEW YORK ACCORDING TO INDUSTRY EXECUTIVES MOBIL DECLINED TO COMMENT THE BAD NEWS IS AIRLINES ARE RAISING THE PRICE FOR QUOTE FREE QUOTE TICKETS THE GOOD NEWS IS MILES HAVE NEVER BEEN MORE ABUNDANT A. M. R.'S AMERICAN AIRLINES U. A. L.'S UNITED AIRLINES AND U. S. AIR A UNIT OF U. S. AIR GROUP HAVE ALL INCREASED REDEMPTION LEVELS FOR DOMESTIC COACH CLASS TICKETS STARTING NEXT YEAR TO TWENTY FIVE THOUSAND MILES FROM TWENTY THOUSAND MILES AMERICAN INCREASED THE COST OF ITS DOMESTIC FIRST CLASS TICKETS TO FORTY FIVE THOUSAND MILES FROM FORTY THOUSAND CONTINENTAL AIRLINES NORTHWEST AIRLINES AND AMERICA WEST AIRLINES WILL ALL FOLLOW SUIT PREDICTS RANDY PETERSEN EDITOR OF INSIDER FLYER WHY THE CHANGE THE NUMBER OF SO CALLED NON REVENUE PASSENGERS HAS BEEN RISING STEADILY AND STAND AT ABOUT SIX PERCENT RAISING THE MILEAGE REQUIREMENTS WILL PRESUMABLY RESULT IN FEWER FREE TRIPS MEANTIME PASSENGERS ARE ABLE TO ACCUMULATE MILES WITHOUT EVER STEPPING ON AN AIRPLANE AS AIRLINES INCREASE THEIR PARTNERSHIPS WITH HOTELS CRUISE LINES TELEPHONE COMPANIES CREDIT CARD ISSUERS AND OTHERS WE'VE NOT HAD ONE PRICE INCREASE IN THIRTEEN YEARS BUT LOOK AT THE VALUE WE DELIVER TO CUSTOMERS SAYS JAMES M. GUYETTE UNITED'S EXECUTIVE VICE PRESIDENT FOR MARKETING NOTING THAT THE CARRIER HAS TIE INS WITH FIVE CRUISE LINES FOUR CAR RENTAL COMPANIES AND HOTELS INCLUDING THE RITZ CARLTON AIRLINES ALSO ARE REJIGGERING PROGRAMS TO TARGET SPECIFIC MARKETS OR CUSTOMERS UNITED IS LOWERING THE PRICE OF TWO FREE TICKETS TO HAWAII TO ONE HUNDRED THOUSAND MILES FROM ONE HUNDRED TWENTY THOUSAND MILES NORTHWEST HAS ADDED FIVE HUNDRED MILE BONUSES FOR PASSENGERS WHO CONNECT AT ONE OF THE CARRIER'S HUBS DELTA AIR LINES IS REVAMPING ITS ENTIRE PROGRAM TENTATIVELY CALLED SKYMILES IT IS EXPECTED TO IMPOSE EXPIRATION DATES ON ITS MILES AND LOWER THE REDEMPTION LEVEL FOR A FREE DOMESTIC TICKET TO TWENTY FIVE THOUSAND MILES FROM THIRTY THOUSAND MILES EASTERN AIRLINES SHUT ITS OPERATIONS THREE YEARS AGO BUT A BITTER FEUD WITH MANY TRAVEL AGENTS IS JUST HEATING UP THE DISPUTE LAYS BARE THE OFTEN UNEASY RELATIONSHIP BETWEEN THE AIRLINE INDUSTRY AND ITS DISTRIBUTORS EASTERN SEEKING TO SETTLE ITS ESTATE IN BANKRUPTCY COURT RECENTLY SUED SEVEN THOUSAND TRAVEL AGENCIES ALLEGING THAT THEY WITHHELD PAYMENTS TO THE CARRIER ON TICKETS THEY SOLD THE CLAIMS SOME OF WHICH DATE TO NINETEEN EIGHTY EIGHT TOTAL ELEVEN POINT SIX MILLION DOLLARS EASTERN SAID IT WOULD SETTLE WITH EACH AGENCY FOR SEVENTY FIVE PERCENT OF ITS CLAIM WHILE THE AVERAGE CLAIM IS LESS THAN ONE THOUSAND SEVEN HUNDRED DOLLARS SOME AGENTS ARE CRYING FOUL THEY SAY THEY CAN'T PROVE THEIR INNOCENCE BECAUSE THEY DON'T KEEP RECORDS FOR MORE THAN A YEAR OR TWO THEY ALSO SAY EASTERN NEVER SENT THEM DEBIT MEMOS FOR UNPAID BILLS A POINT EASTERN DISPUTES WE GAVE THEM THOUSANDS AND THOUSANDS OF DOLLARS IN BUSINESS AND TO HAVE THEM BITE US IN THE NOSE LIKE THIS IS REALLY NASTY SAYS JOHN SZYMANSKI OWNER OF PARADISE TRAVEL SERVICE IN BOSTON WHICH EASTERN SAYS OWES SIX HUNDRED DOLLARS TO THE ESTATE MR. SZYMANSKI SAYS HE OWES NOTHING SO FAR ABOUT ONE THOUSAND FIVE HUNDRED AGENTS HAVE SETTLED AGENTS WHO DON'T PAY AND WANT TO AVOID COURT CAN EITHER SUBMIT TO BINDING ARBITRATION OR GO TO MEDIATION THE ASSOCIATION OF RETAIL TRAVEL AGENTS A TRADE GROUP IS URGING MEMBERS TO FIGHT EASTERN ON PRINCIPLE IF AGENTS PAY UP OTHER DEFUNCT AIRLINES WILL COME KNOCKING EASTERN SAYS IT IS OBLIGED BY THE COURT TO SETTLE ALL CLAIMS RELATED TO THE ESTATE MOREOVER HONEST AGENTS SHOULD BE GRATEFUL THAT EASTERN IS FORCING THE DEADBEATS TO PAY UP THE AIRLINE SAYS THIS MUST BE VIEWED AS LEVELING THE PLAYING FIELD SAYS JOHN SICILIAN EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL OF EASTERN HIGHER RENTAL RATES ON NINETEEN NINETY FOUR AUTOS MAY VEX CAR RENTAL CUSTOMERS BUT THE CARS ARE PROBABLY SAFER THAN EVER BEFORE NATIONAL CAR RENTAL SYSTEM A UNIT OF GENERAL MOTORS REPORTS THAT NINETY NINE PERCENT OF ITS FLEET HAS ANTILOCK BRAKES AND AUTOMATIC LOCKS COMPARED WITH THIRTY EIGHT PERCENT AND FORTY EIGHT PERCENT RESPECTIVELY TWO YEARS AGO AIRBAGS ARE POPPING UP SO TO SPEAK ALL OVER THE PLACE HERTZ SAYS EIGHTY PERCENT OF ITS FLEET HAS DRIVER SIDE BAGS THEY'RE IN TWO THIRDS OF THE CARS AT BUDGET RENT A CAR A UNIT OF BEECH HOLDINGS FIVE YEARS AGO YOU'D HAVE A DIFFICULT TIME FINDING AIRBAGS IN RENTAL CARS SAYS TOM HAWKES SENIOR VICE PRESIDENT OF FLEET OPERATIONS AT BUDGET RENTAL CAR COMPANIES SAY THEY WANT THEIR CUSTOMERS DRIVING THE SAFEST CARS POSSIBLE AND IN SOME CASES THAT MEANS PHASING OUT SMALLER CARS LACKING THE BEST SAFETY GIZMOS NATIONAL FOR EXAMPLE IS PARTING WITH G. M.'S GEO METROS AND SUNBIRDS BECAUSE THOSE MODELS DON'T HAVE ANTILOCK BRAKES BUT MORE THAN ALTRUISM IS AT WORK HERE FOR THE RENTAL COMPANIES THEY TYPICALLY SELL BACK THEIR CARS TO THE AUTO MAKERS WHO FIND FAR GREATER VALUE IN VEHICLES WITH SAFETY FEATURES THE ECONOMIC ANALYSIS IS REAL SIMPLE MR. HAWKES AT BUDGET SAYS QUOTE DO WE WANT CARS THAT CAR MAKERS WANT TO BUY BACK OR DO WE WANT CARS THAT WE'LL HAVE TO SELL ON OUR OWN QUOTE AVIS HAS EQUIPPED VEHICLES IN SEVERAL CITIES INCLUDING NEW YORK DETROIT AND SEATTLE WITH HEADLIGHTS THAT AUTOMATICALLY TURN ON WHEN THE ENGINE IS RUNNING IT'S ALSO TESTING IN TWO CITIES A NEW GLASS COATING THAT SUPPOSEDLY HELPS WIPERS SWEEP OFF WATER AND ALL OF AVIS'S NINETEEN NINETY FOUR MINIVANS WILL HAVE BUILT IN CHILD SAFETY SEATS IF TWO PEOPLE RENT A CAR A FEE TYPICALLY IS ASSESSED ON THE SECOND DRIVER UNLESS THAT PERSON IS A SPOUSE OR BUSINESS COLLEAGUE OUT AND ABOUT A PUBLICATION FOR GAY TRAVELERS APPLAUDS AVIS FOR BEING THE FIRST MAJOR RENTAL COMPANY TO WAIVE THE FEE FOR SAME SEX PARTNERS AMERICAN EXPRESS MAILS CARD MEMBERS A TWO PAGE CUSTOMER SATISFACTION SURVEY AND INCLUDES A DOLLAR BILL AS AN EXPRESSION OF GRATITUDE NORTHWEST AIRLINES IS DROPPING OUT OF AMERICAN EXPRESS'S MEMBERSHIP MILES PROGRAM WHEREBY CARD MEMBERS ACCUMULATE MILES BASED ON EXPENDITURES A LOOPHOLE IN A FEDERAL SMALL BUSINESS LENDING PROGRAM HELPED AN ENTREPRENEUR NAMED PETER VAN OOSTERHOUT TO CHARGE AMERICAN TAXPAYERS TWENTY EIGHT MILLION DOLLARS FOR HIS OWN BAD INVESTMENTS REGULATORS SAY MR. VAN OOSTERHOUT SIXTY TWO YEARS OLD WAS ALSO ABLE TO USE SOME OF THIS MONEY TO INVEST IN A TINY SALT LAKE CITY COMPANY WHOSE STOCK PRICE HAS SOARED EVEN AS IT HAS BEEN LOSING MONEY MR. VAN OOSTERHOUT GOT THE MAJOR PART OF HIS INVESTMENT FUNDS FROM THE SMALL BUSINESS INVESTMENT COMPANY PROGRAM IN WHICH PRIVATELY OWNED FIRMS KNOWN AS S. B. I. C.S USE A COMBINATION OF FEDERALLY GUARANTEED DEBT AND PRIVATE CAPITAL TO HELP FINANCE SMALL BUSINESSES CURRENTLY SOME TWO HUNDRED EIGHTY S. B. I. C.S HAVE ABOUT EIGHT HUNDRED FIFTY MILLION DOLLARS IN GOVERNMENT BACKED DEBT AS WELL AS TWO POINT THREE BILLION DOLLARS IN PRIVATE FUNDS THE S. B. I. C. PROGRAM WAS CREATED BY CONGRESS IN NINETEEN FIFTY EIGHT AS A WAY TO HELP PROMOTE THE GROWTH OF SMALL BUSINESSES TO GET S. B. I. C. STATUS INVESTMENT FIRMS HAVE TO APPLY TO THE SMALL BUSINESS ADMINISTRATION WHICH OVERSEES THE PROGRAM S. B. I. C.S HAVE HELPED HUNDREDS OF SMALL BUSINESSES GROW AND PROSPER INCLUDING APPLE COMPUTER INCORPORATED AND FEDERAL EXPRESS CORPORATION THE PROBLEM IS THAT DURING THE NINETEEN EIGHTIES WHEN MAKING RISKY INVESTMENTS WAS COMMONPLACE HUNDREDS OF INVESTMENTS WENT SOUR DOZENS OF S. B. I. C.S SANK AND TAXPAYERS WERE LEFT FOOTING A BILL THAT HAS BEEN ESTIMATED AT SEVERAL HUNDRED MILLION DOLLARS THE S. B. A. HAS HAD TO GO TO COURT IN RECENT YEARS TO SEIZE CONTROL OF SOME SIX DOZEN FAILING S. B. I. C.S IN ORDER TO SELL ASSETS AND TRY TO RECOVER AT LEAST SOME OF THE TAXPAYERS' MONEY PROBABLY NO SINGLE CASE BETTER EXEMPLIFIES THE ABUSES IN THE PROGRAM SAY S. B. A. OFFICIALS THAN THAT OF MR. VAN OOSTERHOUT AND HIS S. B. I. C. RIVER CAPITAL CORPORATION OF WHICH HE IS PRESIDENT AND HAS BEEN A MAJOR OWNER REGULATORS SAY MR. VAN OOSTERHOUT HAD BEEN A LEADING FIGURE IN THE S. B. I. C. INDUSTRY EVEN BEFORE HE BECAME PRESIDENT AND PART OWNER OF RIVER CAPITAL IN NINETEEN EIGHTY THREE HE WAS CHAIRMAN OF THE NATIONAL ASSOCIATION OF SMALL BUSINESS INVESTMENT COMPANIES HE HELPED ESTABLISH RIVER CAPITAL BASED IN SPRINGFIELD VIRGINIA A FEW YEARS LATER AND WITH ABOUT SEVEN MILLION DOLLARS IN PRIVATE FUNDS AND TWENTY EIGHT MILLION DOLLARS FROM THE GOVERNMENT HE DEVELOPED IT INTO ONE OF THE COUNTRY'S BIGGEST S. B. I. C.S FINANCING DOZENS OF COMPANIES THE S. B. A. WASN'T ABLE TO RECOVER ANY TAXPAYER DOLLARS IN THE CASE OF RIVER CAPITAL BEFORE IT COULD SEIZE CONTROL OF THE FOUNDERING FIRM RIVER CAPITAL FILED FOR PROTECTION UNDER CHAPTER ELEVEN OF THE FEDERAL BANKRUPTCY CODE IN NINETEEN EIGHTY NINE AND THERE REGULATORS SAY IS THE LOOPHOLE CONGRESS DESIGNED THE S. B. I. C. PROGRAM TO MAKE THE GOVERNMENT A SUBORDINATE DEBTOR SO IN BANKRUPTCY REORGANIZATION PROCEEDINGS THE DEBTS OWED TO THE GOVERNMENT CAN BE CANCELED IF THE COURT FINDS THERE ISN'T ENOUGH MONEY TO PAY OFF ALL THE CREDITORS THE AVAILABILITY OF BANKRUPTCY OFFERS A QUOTE SWEET SITUATION FOR THE S. B. I. C. OWNER QUOTE IN WHICH THE QUOTE GOVERNMENT BECOMES THE CONVENIENT FALL GUY QUOTE SAYS MARTIN TECKLER DEPUTY GENERAL COUNSEL FOR THE S. B. A. IT IS A BIG PROBLEM BANKRUPTCY COURT ELIMINATED RIVER CAPITAL'S TWENTY EIGHT MILLION DOLLAR FEDERAL DEBT FOURTEEN OTHER S. B. I. C.S HAVE ALSO FILED FOR BANKRUPTCY IN THE PAST SEVERAL YEARS S. B. A. OFFICIALS SAY INCLUDING RIVER CAPITAL MORE THAN SEVENTY MILLION DOLLARS OF FEDERAL OBLIGATIONS HAVE BEEN OR ARE EXPECTED TO BE WIPED OUT SAYS MR. TECKLER FEDERAL OFFICIALS SAY THEY BELIEVE FRAUD KEPT THEM FROM SEEING THE S. B. I. C.'S PROBLEMS SOONER MR. VAN OOSTERHOUT IS FACING CRIMINAL CHARGES IN A CLEVELAND FEDERAL COURT ON FRAUD CONSPIRACY AND EXTORTION CHARGES STEMMING FROM HIS OPERATION OF RIVER CAPITAL HIS TRIAL IS EXPECTED TO BEGIN SOMETIME THIS YEAR MR. VAN OOSTERHOUT HAS PLEADED NOT GUILTY TO THE CHARGES NEITHER HE NOR HIS ATTORNEY RETURNED PHONE CALLS SEEKING COMMENT THE INDICTMENT CHARGES HIM WITH BEING PART OF A SCHEME TO MISREPRESENT THE FINANCIAL HEALTH OF RIVER CAPITAL AND ITS INVESTMENT PORTFOLIO IN ORDER TO KEEP FEDERAL MONEY FLOWING FOR INSTANCE TWO OF THE PORTFOLIO COMPANIES ALLEGEDLY CLAIMED EQUIPMENT THAT THEY DIDN'T ACTUALLY OWN ALONG WITH THREE OTHERS MR. VAN OOSTERHOUT ALSO ALLEGEDLY TRIED TO EXTORT MONEY FROM A BUSINESSMAN WHO SUPPOSEDLY WAS IN DEBT TO ONE OF THEM THE FOUR ARE CHARGED WITH SETTING FIRE TO THE BUSINESSMAN'S CAR AND THREATENING HIS WIFE ACCORDING TO THE INDICTMENT RIVER CAPITAL IS STILL IN BUSINESS THOUGH IT IS NO LONGER IN THE S. B. I. C. PROGRAM THE COMPANY EMERGED FROM BANKRUPTCY IN NINETEEN NINETY ONE STILL IN POSSESSION OF SOME OF ITS FEDERALLY BACKED INVESTMENTS ONE OF THOSE INVESTMENTS HAS TURNED INTO A WINNER FOR A ONE MILLION DOLLAR INVESTMENT STARTING IN THE EARLY NINETEEN EIGHTIES RIVER CAPITAL'S PREDECESSOR WHICH MR. VAN OOSTERHOUT HELPED OPERATE PICKED UP ABOUT ONE POINT SEVEN MILLION SHARES OF ALANCO ENVIRONMENTAL RESOURCES CORPORATION A SALT LAKE CITY COMPANY THAT OWNS SOME DORMANT MINES AND MANUFACTURES POLLUTION CONTROL EQUIPMENT MR. VAN OOSTERHOUT HAS BEEN AN ALANCO DIRECTOR SINCE NINETEEN EIGHTY THREE A WOMAN WHO ANSWERED THE PHONE AT RIVER CAPITAL'S OFFICE SAID ALL QUESTIONS WOULD HAVE TO BE DIRECTED TO MR. VAN OOSTERHOUT ALANCO'S STOCK MARKET PERFORMANCE CONTRASTS SHARPLY WITH ITS FINANCIAL PERFORMANCE WITH NINETEEN POINT FOUR MILLION SHARES OUTSTANDING ITS MARKET VALUE HAS SURGED TO ABOUT NINETY MILLION DOLLARS MORE THAN A THREEFOLD INCREASE IN THE PAST YEAR YET IN THE PAST FOUR YEARS THE COMPANY HAS REPORTED ACCUMULATED LOSSES OF EIGHT MILLION DOLLARS INCLUDING A FOUR POINT ONE MILLION DOLLAR LOSS FOR FISCAL NINETEEN NINETY THREE ENDED JUNE THIRTIETH REVENUES FOR THAT YEAR WERE JUST TEN THOUSAND NINE HUNDRED EIGHTY SEVEN DOLLARS ALANCO HOWEVER HAS PRODUCED A STEADY STREAM OF UPBEAT PRESS RELEASES PARTICULARLY CONCERNING VARIOUS POLLUTION CONTROL DEALS IN CHINA INCLUDING ONE POTENTIAL MULTIBILLION DOLLAR CONTRACT ALANCO HAS ALSO ANNOUNCED A SERIES OF FINANCING ARRANGEMENTS OVER RECENT YEARS MANY OF WHICH NEVER CAME TO PASS AND ONE THAT DID A SEVENTY TWO MILLION DOLLAR CREDIT LINE WAS ARRANGED BY ONE MARIO RENDA THROUGH A NEW YORK CITY FIRM CALLED FINANCIAL SECURITY CORPORATION IN THE EARLY NINETEEN EIGHTIES MR. RENDA WAS A DEPOSIT BROKER WHO PLACED BILLIONS OF DOLLARS OF DEPOSITS IN THRIFTS AND BANKS AROUND THE U. S. HE WAS CONVICTED OR PLEADED GUILTY IN NINETEEN EIGHTY SEVEN IN THREE DIFFERENT COURTS TO CRIMES RANGING FROM BANK FRAUD TO RACKETEERING TO TAX EVASION PROSECUTORS AND INVESTIGATORS CONTENDED THAT MR. RENDA'S CRIMES CONTRIBUTED TO THE DEMISE OF SEVERAL DOZEN THRIFTS AND BANKS PARTLY BY ARRANGING FOR FRAUDULENT LOANS BRENT DYER FINANCIAL SECURITY'S PRESIDENT DIDN'T RETURN REPEATED PHONE CALLS A WOMAN ANSWERING THE PHONE AT FINANCIAL SECURITY IDENTIFIED MR. RENDA AS A VICE PRESIDENT OF THE COMPANY MR. RENDA DENIES THE TITLE BUT ADMITS HE WAS FOR A TIME IN NINETEEN NINETY TWO ALANCO'S MARKETING DIRECTOR AN ALANCO SPOKESMAN SAYS THE S. E. C. HAS BEEN INVESTIGATING THE COMPANY'S ANNOUNCEMENTS BUT THAT THE COMPANY HAS DONE NOTHING WRONG S. E. C. OFFICIALS DECLINE TO COMMENT THE S. B. A. HAS BEEN URGING CONGRESS TO BAR S. B. I. C.S FROM SEEKING BANKRUPTCY PROTECTION A BANKRUPTCY REFORM BILL CONTAINING SUCH A MEASURE PASSED THE SENATE LAST YEAR BUT DIED IN THE HOUSE OF REPRESENTATIVES THOUGH THE S. B. A. HAS CHANGED ITS S. B. I. C. REGULATIONS TO GIVE IT MORE PROTECTION AGAINST BANKRUPTCY LOSSES THE AGENCY STILL BELIEVES CONGRESSIONAL ACTION IS NECESSARY SAYS MR. TECKLER THE S. B. A.'S DEPUTY GENERAL COUNSEL OTHERWISE S. B. I. C.S COULD CONTINUE TO STICK IT TO THE GOVERNMENT MR. TECKLER SAYS THOR INDUSTRIES INCORPORATED SAID IT RECEIVED ITS LARGEST EVER ORDER VALUED AT ABOUT FIFTEEN MILLION DOLLARS FROM GO VACATIONS INCORPORATED A RECREATIONAL VEHICLE RENTAL CONCERN BASED IN TORONTO TO BUILD FOUR HUNDRED FIFTY MOTOR HOMES THE MAKER OF RECREATIONAL VEHICLES AND SMALL AND MIDSIZE BUSES SAID THE VEHICLES WILL BE BUILT AT ITS FOUR WINDS FACILITY IN ELKHART INDIANA AND WILL BE SHIPPED TO GO VACATIONS' TEN RENTAL CENTERS IN THE U. S. AND CANADA BEGINNING NEXT MONTH THE ORDER WILL INCREASE PRODUCTION OF THE COMPANY'S CLASS C. MOTOR HOMES BY ABOUT TWENTY PERCENT RUSSIANS ALEXANDER GOLUBEV AND SERGEI KLEVCHENYA BOTH BREAKING THE OLYMPIC RECORD SWEPT THE TOP TWO MEDALS IN MEN'S FIVE HUNDRED METER SPEED SKATING DAN JANSEN OF THE U. S. THE WORLD RECORD HOLDER SLIPPED AND FINISHED EIGHTH MR. GOLUBEV WON IN THIRTY SIX POINT THREE THREE FOLLOWED BY MR. KLEVCHENYA IN THIRTY SIX POINT THREE NINE BOTH BROKE THE OLYMPIC MARK OF THIRTY SIX POINT FOUR FIVE SET BY UWE JENS MEY OF THE FORMER EAST GERMANY IN CALGARY IN NINETEEN EIGHTY EIGHT MANABU HORII OF JAPAN WAS THE BRONZE MEDALIST IN THIRTY SIX POINT FIVE THREE MR. JANSEN WHOSE BEST OLYMPIC FINISH IS A FOURTH IN THE FIVE HUNDRED IN NINETEEN EIGHTY FOUR AND AGAIN IN NINETEEN NINETY TWO IS THE ONLY MAN EVER TO SKATE FASTER THAN THIRTY SIX SECONDS IN THE FIVE HUNDRED HE SLIPPED ON THE HOME TURN OF YESTERDAY'S RACE BRUSHING HIS HAND AGAINST THE ICE QUOTE IT'S A BIT OF A SHOCK TO ME QUOTE MR. JANSEN SAID I'M NOT MAKING EXCUSES BUT IT'S NOT A PLACE I'VE SLIPPED BEFORE I WOULD HAVE WON BY QUITE A BIT IF I DIDN'T SLIP MR. JANSEN AND SEVERAL OTHER SKATERS SAID THE ICE IN THE VIKING SHIP OLYMPIC HALL WAS HARDER THAN THEY HAD SEEN IT A CONDITION THEY DIDN'T LIKE THOMAS ALSGAARD OF NORWAY WON THE MEN'S THIRTY KILOMETER FREESTYLE CROSS COUNTRY SKIING RACE IN A TIME OF ONE HOUR TWELVE MINUTES AND TWENTY SIX POINT FOUR SECONDS BEATING HIS TEAMMATE BJORN DAHLIE BY FORTY SEVEN POINT TWO SECONDS MIKA MYLLYLA WHO IS LEADING FINLAND'S REJUVENATED MEN'S TEAM TOOK THE BRONZE ONE FORTY SEVEN BEHIND THE WINNER MR. ALSGAARD TWENTY TWO YEARS OLD TOOK THE LEAD ONLY A FEW KILOMETERS INTO THE RACE AND HELD A FIVE POINT TWO SECOND ADVANTAGE OVER MR. DAHLIE AT THE TWELVE KILOMETER CHECKPOINT MR. ALSGAARD WHO WAS MAKING HIS OLYMPIC DEBUT INCREASED IT TO TEN SECONDS AT THE HALFWAY STAGE AND AFTER TWENTY TWO POINT ONE KILOMETERS MR. DAHLIE TRAILED BY THIRTY FOUR POINT FIVE SECONDS BY THEN MR. DAHLIE FIGURED HE HAD LOST THE RACE I FELT I WOULD NOT BE ABLE TO CATCH HIM WHEN HE LED BY HALF A MINUTE SAID MR. DAHLIE A TRIPLE GOLD MEDALIST IN THE NINETEEN NINETY TWO OLYMPICS AT ALBERTVILLE I WAS VERY IMPRESSED BY THOMAS'S PERFORMANCE TODAY MR. ALSGAARD A FREESTYLE SPECIALIST SAID HE NEVER EXPECTED TO WIN I THOUGHT I HAD A CHANCE TO MEDAL BUT ONLY IF EVERYTHING WORKED ONE HUNDRED PERCENT HE SAID QUOTE BUT I NEVER EVEN DREAMED OF WINNING THE GOLD MEDAL COMING INTO THE SECOND LAP I KNEW I HAD A CHANCE TO WIN GERMANY'S GEORGE HACKL BECAME THE FIRST SOLO LUGER TO REPEAT AS AN OLYMPIC GOLD MEDALIST WHEN HE EDGED AUSTRIAN MARKUS PROCK BY THE SMALLEST MARGIN IN OLYMPIC LUGE HISTORY THE DIFFERENCE BETWEEN THE TWO RIVALS WAS ZERO POINT ZERO ONE THREE SECOND ROUGHLY THIRTEEN INCHES MR. HACKL'S TIME FOR THE FOUR RUNS WAS THREE MINUTES TWENTY ONE POINT FIVE SEVEN ONE SECONDS DUNCAN KENNEDY FOURTH AFTER TWO RUNS AND BIDDING TO BECOME THE FIRST MALE AMERICAN LUGER TO WIN AN OLYMPIC MEDAL CRASHED NEAR THE END OF HIS THIRD RUN WHILE TRAVELING AT NEARLY EIGHTY MPH AND CAREENED OFF BOTH WALLS SENDING SLIVERS OF ICE THROUGH THE AIR MR. HACKL HAD TO MAKE UP ZERO POINT ZERO FOUR EIGHT OF A SECOND IN THE FOURTH AND FINAL RUN AFTER THE THIRD RUN I KNEW I COULD STILL MAKE IT BECAUSE FIVE HUNDREDTHS OF A SECOND IS LIKE NOTHING MR. HACKL SAID IT WAS LIKE A CRIME NOVEL THERE WAS SO MUCH SUSPENSE IN A REPEAT OF THE ALBERTVILLE GAMES MR. PROCK HAD TO SETTLE FOR THE SILVER AGAIN ITALY'S ARMIN ZOGGELER BRUSHED THE WALL ON HIS FIRST RUN OF THE DAY LOSING VALUABLE TIME BUT HELD ON FOR THE BRONZE MEDAL LASSE KJUS REKINDLED HOPES OF AN ALPINE VICTORY FOR NORWAY WHEN HE WON THE DOWNHILL PORTION OF THE ALPINE COMBINED EDGING AMERICANS KYLE RASMUSSEN AND TOMMY MOE MR. KJUS HAD A TIME OF ONE MINUTE THIRTY SIX POINT NINE FIVE SECONDS MR. RASMUSSEN WAS TIMED IN ONE THIRTY SIX AND MR. MOE THE OLYMPIC DOWNHILL CHAMPION CLOCKED ONE THIRTY SEVEN THE COMBINED MEDALS ARE BASED ON AGGREGATE RESULTS OF A DOWNHILL RACE AND A SLALOM THAT WILL BE RUN FEBRUARY TWENTY FIFTH THE CZECH REPUBLIC DEFEATED AUSTRIA SEVEN TO THREE THE CZECHS WHO ARE EXPECTED TO CONTEND FOR THE GOLD MEDAL ARE ONE TO ONE AFTER AN EARLIER UPSET BY FINLAND AUSTRIA FELL TO ZERO TO TWO GERMANY DEFEATED NORWAY BY A SCORE OF TWO TO ONE TO GO TO TWO TO ZERO NORWAY HAS LOST BOTH OF ITS GAMES AETNA LIFE AND CASUALTY COMPANY EXPECTS TO REPORT OPERATING PROFIT OF MORE THAN SIX DOLLARS AND FIFTY CENTS A SHARE THIS YEAR COMPANY CHAIRMAN RONALD COMPTON TOLD ANALYSTS THE FIGURE IS BETTER THAN EXPECTED BY STOCK ANALYSTS FOLLOWING MR. COMPTON'S REMARKS AETNA STOCK ROSE TO SIXTY FOUR POINT THREE SEVEN FIVE DOLLARS UP ONE POINT SIX TWO FIVE DOLLARS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE INSURER IN HARTFORD CONNECTICUT RECENTLY ANNOUNCED A RESTRUCTURING THAT INCLUDES REDUCING ITS WORK FORCE BY FOUR THOUSAND OR TEN PERCENT AND GETTING OUT OF TWO PENSION BUSINESSES SINGLE PREMIUM ANNUITIES AND GUARANTEE INVESTMENT CONTRACTS THE BENEFITS OF THOSE ACTIONS WILL TRANSLATE INTO HIGHER OPERATING PROFIT OPERATING PROFIT EXCLUDES CAPITAL GAINS ON INVESTMENTS AND IS VIEWED BY INSURANCE ANALYSTS AS A BETTER MEASURE OF EARNINGS POWER THAN NET INCOME LAST YEAR AETNA EARNED FIVE DOLLARS AND FORTY NINE CENTS A SHARE OR SIX HUNDRED TEN MILLION DOLLARS FROM OPERATIONS QUOTE BARRING ABNORMALLY HIGH CATASTROPHE LOSSES AND OTHER UNUSUAL CHARGES WE EXPECT NINETEEN NINETY FOUR OPERATING EARNINGS TO BE SOMEWHAT NORTH OF SIX DOLLARS AND FIFTY CENTS PER SHARE QUOTE MR. COMPTON TOLD ANALYSTS AT A MEETING IN NEW YORK THE PER SHARE FIGURE INDICATES SEVEN HUNDRED TWENTY FIVE MILLION DOLLARS IN OPERATING PROFIT FOR NINETEEN NINETY FOUR MR. COMPTON EMPHASISED THAT THE COMPANY'S INDIVIDUAL BUSINESS SEGMENTS WILL POST BETTER RESULTS ESPECIALLY IN COMMERCIAL PROPERTY AND CASUALTY AETNA IS IN THE MIDST OF A RESTRUCTURING DESIGNED TO MAKE IT MORE PROFITABLE FOR YEARS ITS EARNINGS HAVE SUFFERED FROM SOURED REAL ESTATE INVESTMENTS COSTLY CLAIMS ON POLLUTION AND ASBESTOS AS WELL AS HIGH EXPENSES ON A NET BASIS THE COMPANY HAD A LOSS OF THREE HUNDRED SIXTY SIX MILLION DOLLARS OR THREE DOLLARS AND TWENTY NINE CENTS A SHARE AGAINST PROFIT OF FIFTY SIX MILLION DOLLARS OR FIFTY ONE CENTS A SHARE IN NINETEEN NINETY TWO IN THE FOURTH QUARTER AETNA TOOK A ONE POINT TWO EIGHT BILLION DOLLAR CHARGE TO PAY FOR THE LAYOFFS AND THE COSTS OF GETTING OUT OF THE PENSION BUSINESSES WITH THE CLINTON ADMINISTRATION MOVING TO SLAP TRADE SANCTIONS ON JAPAN MOST OF CORPORATE AMERICA INCLUDING SOME COMPANIES EXASPERATED WITH JAPAN IS CALLING FOR CAUTION AND CALM PREDICTABLY FIRMS HURT BY JAPANESE COMPETITION WERE MORE INCLINED TO SUPPORT RETALIATION BY AND LARGE THOUGH U. S. BUSINESSES EVEN THOSE WHO APPLAUD THE CLINTON ADMINISTRATION'S HANG TOUGH STANCE DON'T WANT A TRADE WAR THAT THREATENS TO FLARE OUT OF CONTROL SOME EXECUTIVES SAW THE RISING YEN AS A WAY TO SOLVE THE TRADE PROBLEM QUOTE PEACEFULLY QUOTE BY GIVING JAPANESE CONSUMERS MORE BUYING POWER AND RAISING THE COST OF JAPANESE GOODS IN THE U. S. BE CAUTIOUS SAID JOSEPH MONTGOMERY CHIEF EXECUTIVE OFFICER AT CANNONDALE CORPORATION A GEORGETOWN CONNECTICUT OFF ROAD BICYCLE MAKER THERE'S GOT TO BE A LOT OF DIFFERENT WAYS TO WRINKLE THIS WORM AROUND EVEN GIDDINGS AND LEWIS INCORPORATED A BIG U. S. MACHINE TOOL MAKER WHICH HASN'T MADE A MAJOR SALE IN JAPAN SINCE NINETEEN SEVENTY FOUR ISN'T PUSHING ANY SPECIFIC RETALIATION PLANS THE FOND DU LAC WISCONSIN COMPANY ONLY SAYS THAT THE U. S. SHOULD CLOSELY LOOK AT THE OPTIONS AVAILABLE TO IT INDUSTRIES HURT BY JAPANESE EXPORTS PARTICULARLY THE AUTO COMPANIES TEND TO TAKE A TOUGHER LINE JAPAN SEEMS DETERMINED NOT TO ALLOW A MEANINGFUL OPENING OF THEIR MARKET SAID ROBERT J. EATON CHRYSLER CORPORATION CHAIRMAN HIS COMPANY WANTS TO SEE HIGHER TARIFFS ON JAPANESE MINIVANS AND SPORT UTILITY VEHICLES STEVEN WOLF A VICE PRESIDENT AT THE RIVER OAKS CHRYSLER SLASH PLYMOUTH DEALERSHIP IN HOUSTON SAID HE WOULD LIKE TO SEE TARIFFS SLAPPED ON JAPANESE AUTOS AND OTHER PRODUCTS WHICH HE BELIEVES ARE DUMPED IN THE U. S. CHRYSLER SELLS CARS TO MAKE A PROFIT TOYOTA MOTOR CORPORATION AND THE JAPANESE SELL CARS TO MAINTAIN MARKET SHARE QUOTE MR. WOLF COMPLAINED OTHERS JOINED CHRYSLER IN THE CALL FOR RETALIATION WE WOULD BE HAWKS SAID CHRIS DOLAN MANAGER OF PLANNING AND DEVELOPMENT AT GUARDIAN INDUSTRIES CORPORATION WHICH HAS BEEN SELLING GLASS TO THE JAPANESE AUTOMOTIVE AND CONSTRUCTION MARKET FOR SEVERAL YEARS WE SUPPORT THE TOUGH STANCE THE ADMINISTRATION HAS TAKEN THAT'S THE ONLY WAY WE WILL EVENTUALLY PRY OPEN THE JAPANESE MARKET HE SAID ADDING THAT GUARDIAN SALES IN JAPAN ARE EXTREMELY SMALL COMPARED TO THE PRICE OF DOING BUSINESS THERE CRAY RESEARCH INCORPORATED THE BIG U. S. SUPERCOMPUTER MAKER SAID THE CLINTON ADMINISTRATION DID EXACTLY THE RIGHT THING IN BREAKING OFF TALKS CRAY OFFICIALS SAID THE COMPANY HAS NEVER HAD A FAIR SHOT IN COMPETITIONS WITH FIRMS SUCH AS HITACHI LIMITED N. E. C. CORPORATION AND FUJITSU LIMITED BUT PAUL DILLINGHAM VICE PRESIDENT OF GOVERNMENT OPERATIONS DISCOURAGED U. S. RETALIATION BECAUSE IT WOULD BE A VERY VERY SERIOUS STEP FOR THE U. S. GOVERNMENT TO TAKE IT WOULD IMPACT A VARIETY OF INDUSTRIES QUOTE MEANWHILE JAPAN SIGNALED NEW OPENNESS TO U. S. SUPERCOMPUTER MAKERS A GOVERNMENT RESEARCH INSTITUTE ANNOUNCED YESTERDAY THAT IT WOULD BUY MACHINES FOR A SUPERCOMPUTER CENTER FROM SEVERAL U. S. COMPANIES LED BY INTERNATIONAL BUSINESS MACHINES CORPORATION JAPANESE OFFICIALS SAID THE CONTRACTS MEAN SIX OF THE PAST ELEVEN PUBLIC SUPERCOMPUTER BIDS HAVE GONE TO U. S. MAKERS HIGH TECH COMPANIES THAT COUNT ON JAPANESE IMPORTS GREW NERVOUS THAT THE TRADE FRACAS WILL BE COSTLY STEVEN RAYMUND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TECH DATA CORPORATION A CLEARWATER FLORIDA WHOLESALE DISTRIBUTOR OF MICROCOMPUTER HARDWARE AND SOFTWARE NOTED THAT ABOUT TEN PERCENT TO TWENTY PERCENT OF THE PRODUCTS THE COMPANY SELLS HAVE A JAPANESE LABEL WHILE AS MUCH AS A THIRD CONTAIN JAPANESE PARTS IF WE CAN'T GET THEIR PRODUCTS ANYMORE IT'S GOING TO BRING OUR INDUSTRY TO ITS KNEES HE WARNED MR. RAYMUND SAID IT'S FOOLISH FOR THE U. S. TO RETALIATE AGAINST THE JAPANESE NOW BECAUSE OF THE INTERNAL POLITICAL STRAIN THE JAPANESE PRIME MINISTER IS CLINGING TO POWER BY HIS FINGERTIPS HE REASONED THE GUY IS GOING TO HAVE TO DIG IN HIS HEELS TO RETAIN RESPECT AT HOME THE U. S. IS CHOOSING THE WORST POSSIBLE MOMENT TO CONFRONT JAPANESE LEADERSHIP FOR HIS PART PRIME MINISTER MORIHIRO HOSOKAWA PICKED UP SUPPORT AT HOME FOR HIS DEFIANT STANCE IN PREVIOUS TRADE SPATS THE U. S. WAS ABLE TO WIN ALLIES IN SOME KEY JAPANESE CONSTITUENCIES SUCH AS CONSUMERS SUFFERING FROM THE HIGH PRICES THAT RESULT FROM IMPORT BARRIERS BUT THIS TIME THE U. S. FAILED TO CONNECT WITH ANY JAPANESE SUPPORTERS JAPAN'S POWERFUL BUREAUCRATS IN PARTICULAR ARE REJOICING OVER THE COLLAPSE OF THE FRAMEWORK TRADE TALKS WHICH THEY HAD OPPOSED FROM THE START WE'RE SATISFIED SAID ONE MANDARIN WHO JUST RETURNED FROM WASHINGTON INSURANCE EXECUTIVES HAD CLOSELY WATCHED THE TRADE TALKS HOPING FOR BREAKTHROUGHS THAT WOULD OPEN JAPAN'S MARKET THOUGH DISAPPOINTED BY THE COLLAPSE OF TALKS EDWARD HANWAY PRESIDENT OF CIGNA INTERNATIONAL PROPERTY AND CASUALTY A DIVISION OF PHILADELPHIA BASED CIGNA CORPORATION URGED CAUTION QUOTE I'M NOT GUNG HO LET'S SANCTION THE HELL OUT OF THEM QUOTE HE SAID CIGNA HAS BEEN SELLING INSURANCE IN JAPAN SINCE THE EARLY NINETEEN TWENTIES SCOTT MONTGOMERY CHAIRMAN OF JAPAN OPERATIONS FOR CANNONDALE THE BICYCLE MAKER ARGUED SANCTIONS ARE POLITICALLY POWERFUL BUT ECONOMICALLY WON'T MAKE A HILL OF BEANS I WOULD MUCH RATHER SEE THE YEN AT A ONE HUNDRED YEN TO THE DOLLAR THAN TRADE SANCTIONS CANNONDALE EXECUTIVES EXPECT THE COMPANY'S SALES IN JAPAN TO ACCOUNT FOR ABOUT FIVE MILLION DOLLARS OF ITS ESTIMATED ONE HUNDRED FIVE MILLION DOLLARS IN TOTAL SALES FOR THE FISCAL YEAR ENDING JUNE THIRTIETH WALL STREET APPEARS TO BE FOLLOWING THE SENTIMENT OF MANY CORPORATE EXECUTIVES RICHARD BERNER CHIEF ECONOMIST AT MELLON BANK CORPORATION SAID THE RISE OF THE YEN TO ABOUT ONE HUNDRED TWO YEN TO THE DOLLAR DEMONSTRATES THE MARKET'S EXPECTATION THAT THE ADMINISTRATION WILL WANT TO USE THE STRONG YEN TO PRY MORE ACTION OUT OF THE JAPANESE ON THE TRADE SIDE SHEVACH SARAF CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT OF SOLITRON DEVICES INCORPORATED A MAKER OF SEMICONDUCTORS AND OTHER COMPONENTS USED BY THE DEFENSE AND AEROSPACE INDUSTRIES WARNED THAT THERE WILL BE NO MOVEMENT UNLESS THE U. S. SHOWS THEM JAPAN A STRONG HAND BUT THE HEAD OF THE WEST PALM BEACH FLORIDA CONCERN SAID HE PERSONALLY OPPOSES RETALIATION PROTECTIONISM PROTECTS INDUSTRY IN THIS COUNTRY CONTINUING THE WAY IT'S GOING NOW INSTEAD OF TRYING TO EXCEL HE SAYS THE WAY FOR THE U. S. TO RETALIATE IS TO SUBSIDIZE AND PROMOTE NEW PRODUCT DEVELOPMENT AND AUTOMATION SO U. S. MANUFACTURERS COULD BECOME MORE COMPETITIVE WITH THE JAPANESE ON QUALITY HEATING OIL FUTURES PLUNGED MORE THAN THREE CENTS A GALLON ON THE PROMISE OF A THAW IN THE FRIGID WEATHER IN THE NORTHEAST U. S. THAT PULLED THE PROPS FROM UNDER WORLD OIL MARKETS AND PRICES OF CRUDE OIL AND OTHER FUELS ALSO PLUMMETED IN U. S. FUTURES TRADING CRUDE OIL FOR MARCH DELIVERY FELL FIFTY NINE CENTS TO SETTLE AT FOURTEEN DOLLARS AND THIRTEEN CENTS A BARREL THAT WAS THE LOWEST SETTLEMENT PRICE SINCE LATE DECEMBER FOR THE SO CALLED PROMPT MONTH CRUDE TRADED ON THE NEW YORK MERCANTILE EXCHANGE IN U. S. OIL FIELDS MEANWHILE SOME REFINERS WERE REDUCING THE PRICES THEY POST FOR WEST TEXAS INTERMEDIATE THE U. S. BENCHMARK CRUDE BY FIFTY CENTS A BARREL AND ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT BLEND CRUDE FUTURES CLOSED YESTERDAY BETWEEN THIRTY CENTS AND FORTY CENTS A BARREL LOWER PUBLISHED REPORTS THAT SAUDI ARABIA WON'T COMMIT TO A SECOND QUARTER CUT IN ITS OIL PRODUCTION DESPITE WEEKEND APPEALS FROM OTHERS IN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CONTRIBUTED TO THE DECLINES IN CRUDE PRICES QUOTE UNTIL OPEC READDRESSES THE OIL OVERHANG THAT'S ANTICIPATED FOR THE SECOND QUARTER THE MARKET IS GOING TO BE UNDER PSYCHOLOGICAL PRESSURE QUOTE SAID PETER BEUTEL PRESIDENT OF CAMERON HANOVER INCORPORATED A NEW YORK BASED ENERGY RESEARCH AND TRADING FIRM BUT HE AND OTHERS AGREED THAT YESTERDAY'S SELL OFF IN WORLD OIL MARKETS WAS MOSTLY TRIGGERED BY A SUDDEN WEAKENING IN U. S. HEATING OIL FUTURES VERY COLD WEATHER OVER THE U. S. IN RECENT WEEKS HAD DRAINED MUCH OF THE EXCESS FROM FUEL INVENTORIES AND HAD HELD A FLOOR UNDER HEATING OIL PRICES BUT THE HEATING OIL MARKET OFTEN SOFTENS THIS TIME OF THE YEAR IN THE U. S. BETWEEN VALENTINE'S DAY AND PRESIDENTS DAY AS TRADERS BEGIN LOOKING AHEAD TO SPRING AND REPOSITIONING THEMSELVES FOR THE SHIFT IN DEMAND FOR FUELS YESTERDAY HEATING OIL PRICES BEGAN FALLING STEEPLY AFTER A NATIONAL WEATHER SERVICE FORECAST OF WARMER TEMPERATURES IN THE NORTHEAST AFTER THE WEEKEND'S HEAVY SNOWFALL IN HEAVY TRADING ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FOR MARCH DELIVERY DROPPED THREE POINT ONE SIX CENTS A GALLON TO SETTLE AT FORTY SEVEN POINT EIGHT TWO CENTS APRIL HEATING OIL WAS ONE POINT EIGHT SIX CENTS LOWER AT FORTY FOUR POINT THREE CENTS A GALLON IN NATURAL GAS FUTURES TRADING THE MARCH CONTRACT FELL TEN POINT FOUR CENTS TO SETTLE AT TWO POINT TWO FIVE TWO DOLLARS A MILLION BRITISH THERMAL UNITS THE APRIL GAS CONTRACT WAS DOWN FIVE POINT SIX CENTS TO TWO DOLLARS AND EIGHTEEN CENTS A MILLION B. T. U.S GRAINS AND SOYBEANS CORN PRICES SETTLED MIXED IN THE WAKE OF THE AGRICULTURE DEPARTMENT'S WIDELY EXPECTED DECISION TO FURTHER REDUCE ITS ESTIMATE OF THE U. S. CORN STOCKPILE WHICH IS ALREADY AT ITS TIGHTEST LEVEL SINCE THE MID NINETEEN SEVENTIES THE DEPARTMENT LAST WEEK CUT ITS ONE MONTH OLD FORECAST OF THE AUGUST THIRTY FIRST CORN SUPPLY TO SEVEN HUNDRED SEVENTY SEVEN MILLION BUSHELS FROM EIGHT HUNDRED TWO MILLION BUSHELS THE U. S. HAD TWO POINT ONE BILLION BUSHELS OF CORN LEFT OVER IN AUGUST NINETEEN NINETY THREE THE GRAIN SUPPLY REACHES ITS LOWEST LEVEL OF THE YEAR IN AUGUST BECAUSE THE HARVEST BEGINS TO REPLENISH SUPPLIES IN SEPTEMBER IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY SLIPPED ZERO POINT TWO FIVE CENTS A BUSHEL TO SETTLE AT TWO DOLLARS AND NINETY EIGHT CENTS A BUSHEL SUPPLIES ARE TIGHT BECAUSE RECORD RAIN AND FLOODING ACROSS THE MIDWEST LAST YEAR REDUCED THE CORN HARVEST BY THIRTY THREE PERCENT FARMERS IN STATES SUCH AS WISCONSIN WILL HAVE TO IMPORT UNUSUALLY LARGE AMOUNTS OF CORN FROM OTHER STATES IN ORDER TO FEED THEIR LIVESTOCK SPOT SHORTAGES ARE ALSO EXPECTED IN SEVERAL COUNTIES ACROSS THE MIDWEST THIS YEAR PRECIOUS METALS THE DOLLAR'S SWOON AGAINST THE JAPANESE YEN WAS A BOOST TO PRECIOUS METALS PRICES BUT NOT AS MUCH AS MIGHT HAVE BEEN EXPECTED ANALYSTS SAID AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY ROSE THREE DOLLARS AND NINETY CENTS TO THREE HUNDRED EIGHTY FIVE DOLLARS AND SIXTY CENTS AN OUNCE AND THE PRICE OF THE SILVER CONTRACT FOR MARCH DELIVERY WAS UP NINE POINT FIVE CENTS TO FIVE DOLLARS AND THIRTY FIVE CENTS AN OUNCE HOWEVER THE METALS ARE NOT RECEIVING THE AMOUNT OF SUPPORT YOU MIGHT EXPECT SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH GIVEN THE MAGNITUDE OF MOVEMENT IN THE YEN AND EUROPEAN CURRENCIES THE RESPONSE OF PRECIOUS METALS WAS TAME IT MAKES ME SUSPECT THAT THERE WON'T BE ANY REALLY STRONG RALLIES BASED ON CURRENCY SITUATIONS THE PRICE OF GOLD HAS BEEN MIRED IN A THREE HUNDRED EIGHTY DOLLAR TO THREE HUNDRED NINETY DOLLAR AN OUNCE TRADING RANGE FOR WEEKS SLUMPING BONDS AND A WEAKER DOLLAR PRESSURED EQUITIES BUT SMALL CAP STOCKS HUNG ON TO GAINS THROUGHOUT THE SESSION THE RUSSELL TWO THOUSAND INDEX OF SMALL CAPITALIZATION STOCKS CLOSED UP ZERO POINT THREE ZERO POINT OR ZERO POINT ONE ONE PERCENT TO FINISH AT TWO HUNDRED SIXTY THREE POINT ONE NINE THE NASDAQ COMPOSITE INDEX ROSE FOUR POINT OH SIX POINTS OR ZERO POINT FIVE TWO PERCENT TO SEVEN HUNDRED EIGHTY FIVE POINT FOUR FIVE NEITHER INDEX MOVED LOWER DURING THE DAY DESPITE THE NEGATIVE EXTERNAL FORCES ON FRIDAY THE RUSSELL LOST ONE POINT TWO FIVE POINTS AND THE NASDAQ COMPOSITE PULLED BACK TWO POINT OH THREE POINTS IN A SESSION ABBREVIATED BY A MAJOR EAST COAST SNOWSTORM ADVANCING NASDAQ ISSUES TOPPED DECLINERS ONE THOUSAND SIX HUNDRED THIRTY TWO TO ONE THOUSAND FOUR HUNDRED SIXTY NINE ON NASDAQ NATIONAL MARKET VOLUME OF TWO HUNDRED TWENTY FIVE MILLION FOUR HUNDRED FIFTEEN THOUSAND THREE HUNDRED SHARES AND TOTAL VOLUME OF TWO HUNDRED EIGHTY TWO MILLION FIVE HUNDRED THIRTEEN THOUSAND IN FRIDAY'S SHORTENED SESSION NATIONAL MARKET VOLUME REGISTERED JUST ONE HUNDRED SEVENTY ONE MILLION NINE HUNDRED SEVENTY ONE THOUSAND FIVE HUNDRED SHARES WHILE TOTAL VOLUME REACHED TWO HUNDRED EIGHT MILLION ONE HUNDRED EIGHTY NINE THOUSAND THE DOLLAR TUMBLED AGAINST THE YEN HURT BY THE COLLAPSE OF TRADE TALKS BETWEEN THE U. S. AND JAPAN ON FRIDAY MID ATLANTIC MEDICAL SERVICES ROSE TWO TO THIRTY TWO AND SEVEN EIGHTHS THE ROCKVILLE MARYLAND PROVIDER OF MANAGED HEALTH CARE PROJECTS SAID IT WILL POST FOURTH QUARTER NET INCOME BETWEEN FORTY SIX CENTS AND FORTY NINE CENTS A SHARE TOPPING ANALYSTS' ESTIMATES OF TWENTY EIGHT CENTS TO THIRTY THREE CENTS IT EARNED TWENTY TWO CENTS A YEAR EARLIER MID ATLANTIC ALSO SAID IT EXPECTS TO POST NINETEEN NINETY THREE EARNINGS OF ONE DOLLAR AND SEVEN CENTS TO ONE DOLLAR AND TEN CENTS A SHARE UP FROM SIXTY THREE CENTS IN NINETEEN NINETY TWO ALL FIGURES REFLECT A THREE FOR TWO STOCK SPLIT ANNOUNCED IN NOVEMBER DIANA A MILWAUKEE WHOLESALE MEAT DISTRIBUTOR JUMPED TWO AND THREE EIGHTHS TO TWELVE AND THREE QUARTERS ON THE BIG BOARD THE COMPANY SAID FISCAL THIRD QUARTER EARNINGS WERE FIFTY ONE CENTS A SHARE COMPARED WITH OPERATING NET OF SEVEN CENTS A SHARE IN THE YEAR EARLIER PERIOD PROTECTIVE LIFE ROSE THREE AND ONE EIGHTH TO FORTY FIVE AND ONE HALF ON THE BIG BOARD THE BIRMINGHAM ALABAMA INSURER SAID FOURTH QUARTER NET ROSE TO ONE DOLLAR AND THIRTY SEVEN CENTS A SHARE FROM EIGHTY ONE CENTS A YEAR EARLIER ALSO ON THE BIG BOARD SEITEL GAINED ONE AND THREE EIGHTHS TO SIXTEEN AND SEVEN EIGHTHS THE HOUSTON SEISMIC DATA COMPANY SAID FOURTH QUARTER NET INCOME ROSE TO FORTY ONE CENTS A SHARE ON MORE SHARES FROM TWENTY SIX CENTS A YEAR EARLIER SEITEL ALSO SAID ITS THREE D. SEISMIC OPERATIONS ARE BOOKED UP THROUGH NEARLY ALL OF THIS YEAR AND THAT IT IS EXPANDING ITS PRODUCTIVE CAPACITY BUT N. Y. S. E. LISTED TIMBERLAND FELL ONE AND FIVE EIGHTHS TO FORTY ONE AND SEVEN EIGHTHS AFTER PLUNGING NINE AND SEVEN EIGHTHS ON FRIDAY THE HAMPTON N. H. FOOTWEAR AND APPAREL COMPANY EXPECTS TO REPORT BREAK EVEN RESULTS FOR THE FIRST HALF OF NINETEEN NINETY FOUR BUT WILL RECOVER ENOUGH IN THE SECOND HALF TO REPORT EARNINGS OF MORE THAN THREE DOLLARS A SHARE FOR THE YEAR AN ANALYST SAID TIMBERLAND EARNED TWO DOLLARS AND ONE CENT A SHARE IN NINETEEN NINETY THREE ON FRIDAY TIMBERLAND'S SHARES FELL WHEN IT REPORTED FOURTH QUARTER EARNINGS OF SIXTY TWO CENTS A SHARE BELOW THE SIXTY SIX CENTS EXPECTED BY WALL STREET SPECTRAN SANK ONE TO NINE AND ONE HALF AFTER FRIDAY'S CLOSE THE STURBRIDGE MASSACHUSETTS MAKER OF FLEXIBLE GLASS FIBERS SAID FOURTH QUARTER EARNINGS FELL TO TWENTY CENTS A SHARE FROM TWENTY ONE CENTS A YEAR EARLIER TECHNICAL COMMUNICATIONS SLIPPED TWO TO ELEVEN AND ONE QUARTER THE CONCORD MASSACHUSETTS COMMUNICATIONS SECURITY DEVICES CONCERN POSTED A FISCAL FIRST QUARTER LOSS OF TWENTY FOUR CENTS A SHARE COMPARED WITH EARNINGS OF ONE CENT A SHARE A YEAR EARLIER N. Y. S. E. LISTED QUICK AND REILLY GROUP FELL TWO AND FIVE EIGHTHS TO THIRTY ONE MERRILL LYNCH AND COMPANY SOLD FIFTEEN THOUSAND QUICK AND REILLY SHARES AND WAS OFFERING ANOTHER FORTY THOUSAND FOR SALE THE PALM BEACH FLORIDA BROKERAGE FIRM SAID QUICK AND REILLY ALSO TOLD ANALYSTS LAST WEEK THAT IT EXPECTS TO REPORT FISCAL FOURTH QUARTER EARNINGS OF ABOUT ONE DOLLAR A SHARE MATCHING THE FIGURE EARNED A YEAR EARLIER ON A SPLITADJUSTED BASIS PATRICK DAVIS MANAGER OF NASDAQ TRADING AT SALOMON BROTHERS INCORPORATED SAID HE HAS NOTICED A DIVERGENCE IN THE LAST WEEK BETWEEN LARGER AND SMALLER STOCKS THAT COULD INDICATE A BIT OF A ROTATION BACK TO SMALL CAP ISSUES FROM BIGGER CYCLICALS SINCE FEBRUARY FOURTH WHEN THE DOW INDUSTRIALS FELL NINETY SIX POINTS SMALLER STOCKS HAVEN'T POSTED AS LARGE GAINS AS THEIR LARGER COUNTERPARTS ON THAT DAY THE FEDERAL RESERVE SAID IT WOULD MOVE TO TIGHTEN MONETARY POLICY THE DOW INDUSTRIALS HAVE COME BACK ZERO POINT EIGHT FOUR PERCENT SINCE AND THE RUSSELL HAS RECOVERED ZERO POINT FIVE EIGHT PERCENT BUT LAST WEEK THE RUSSELL ROSE TWO DAYS WHEN THE BROADER MARKET FELL MARY LISANTI A BANKERS TRUST COMPANY PORTFOLIO MANAGER OF SMALL CAP AND MIDCAP FUNDS WITH ASSETS OF ABOUT EIGHT HUNDRED MILLION DOLLARS IS BETTING SMALL CAP STOCKS WILL OUTPERFORM LARGER ISSUES OVER THE NEAR TERM QUOTE SMALL CAP STOCKS MARCH TO THEIR OWN DRUMMER QUOTE MS. LISANTI SAID THERE HAVE BEEN MORE SMALLER COMPANY EARNINGS THAT HAVE SURPRISED TO THE UPSIDE RATHER THAN THE DOWNSIDE THIS EARNINGS PERIOD AND THIS IS STILL AN EARNINGS DRIVEN MARKET DAVID WACHTEL JUNIOR FIFTY ONE YEARS OLD RESIGNED AS CHAIRMAN OF O'CHARLEY'S INCORPORATED A RESTAURANT CHAIN TO TURN FULL TIME TO HIS JOB AS PRESIDENT AND CHIEF EXECUTIVE OF PRIVATELY HELD WESTERN SIZZLIN' CORPORATION A CHAIN OF STEAK RESTAURANTS MR. WACHTEL WAS ONE OF A GROUP OF WESTERN SIZZLIN' FRANCHISEES WHO BOUGHT THE CHAIN NOW BASED IN NASHVILLE OUT OF CHAPTER ELEVEN BANKRUPTCY LAW PROCEEDINGS LAST FALL HE WILL BE SUCCEEDED BY GREGORY BURNS THIRTY EIGHT AND CHARLES MCWHORTER JUNIOR THIRTY NINE WHO WILL BE CO CHAIRMEN MR. BURNS WHO HAD BEEN CHIEF FINANCIAL OFFICER AND PRESIDENT WILL ASSUME THE CHIEF EXECUTIVE POST MR. MCWHORTER CHIEF OPERATING OFFICER WILL SUCCEED MR. BURNS AS PRESIDENT MR. WACHTEL WHO HAD BEEN CHIEF EXECUTIVE OFFICER AND PRESIDENT GAVE UP OPERATIONAL RESPONSIBILITY FOR THE COMPANY LAST MAY MR. BURNS SAID SINCE THEN THE COMPANY HASN'T HAD A CHIEF EXECUTIVE OFFICER MR. WACHTEL SAID HE IS FILING A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL AS MANY AS TWO HUNDRED THIRTY THOUSAND SHARES IN O'CHARLEY'S ABOUT ONE THIRD OF HIS STAKE HE IS SELLING FOR QUOTE PERSONAL FINANCIAL REASONS QUOTE THE COMPANY HAS ABOUT FOUR POINT TWO MILLION SHARES OUTSTANDING THE U. S. IS PREPARING A TWO FRONT TRADE BATTLE WITH JAPAN WHICH IS TRYING TO HEAD OFF A FIGHT ON A THIRD FRONT THE ACTIONS FOLLOW THE COLLAPSE OF THE U. S. JAPAN TRADE SUMMIT LAST WEEK IN THE WAKE OF THAT FAILURE THE YEN SOARED AGAINST THE DOLLAR YESTERDAY DESPITE MARKET SPECULATION THAT THE U. S. WILL TRY TO BOOST THE YEN TO MAKE JAPANESE EXPORTS RELATIVELY MORE EXPENSIVE ADMINISTRATION OFFICIALS HAVE SAID THAT ISN'T THEIR INTENTION THEY ARGUE THAT BROADER MARKET FORCES THAT COULD PUSH DOWN THE YEN PRIMARILY THE WEAKNESS OF THE JAPANESE ECONOMY ARE TOO STRONG TO COUNTERACT UNILATERALLY THE CLINTON ADMINISTRATION DIDN'T ACT TO STOP THE YEN'S RISE DURING NEW YORK TRADING YESTERDAY BUT LAST NIGHT HOPING TO CALM THE FOREIGN EXCHANGE MARKET THE U. S. TREASURY ISSUED A STATEMENT ATTRIBUTED TO A SENIOR TREASURY OFFICIAL AND RELEASED JUST IN TIME FOR THE OPENING OF THE TOKYO MARKETS IT SAID QUOTE OUR EXCHANGE RATE POLICY IS UNCHANGED FROM THAT ALREADY ARTICULATED BY TREASURY SECRETARY LLOYD BENTSEN WE DO NOT BELIEVE IN ARTIFICIALLY MANIPULATING EXCHANGE RATES QUOTE THE U. S. HOPES THAT ITS TOUGH TRADE TACTICS WILL FORCE JAPAN TO RETREAT AND ADOPT IMPORT GOALS THAT IT DISMISSED LAST WEEK TO LAUNCH ITS CAMPAIGN THE ADMINISTRATION HAS DECIDED TO RENEW A TOUGH TRADE PROVISION KNOWN AS SUPER THREE HUNDRED ONE THAT SINGLES OUT COUNTRIES FOR RETALIATION AND IS AIMED AT JAPAN CONGRESSIONAL STAFFERS SAID THE RENEWAL WOULD COME AS EARLY AS TODAY BUT CLINTON OFFICIALS SAID IT MIGHT BE SEVERAL DAYS LATER AT THE SAME TIME THE ADMINISTRATION PLANS TO LAUNCH TRADE SANCTION PROCEEDINGS TODAY OVER A DISPUTE WITH JAPAN OVER CELLULAR TELEPHONES WE'RE LOOKING AT SEVERAL OPTIONS PRESIDENT CLINTON SAID BUT I'M NOT RULING ANYTHING OUT AS PROSPECTS FOR CONFLICT HEIGHTENED JAPANESE OFFICIALS MOVED TO CALM YET ANOTHER TRADE DISPUTE THIS ONE OVER SUPERCOMPUTERS A JAPANESE GOVERNMENT RESEARCH INSTITUTE ANNOUNCED YESTERDAY THAT IT WOULD BUY MACHINES FOR A SUPER COMPUTER CENTER FROM SEVERAL AMERICAN COMPANIES LED BY INTERNATIONAL BUSINESS MACHINES CORPORATION NEXT MONTH THE U. S. IS SCHEDULED TO COMPLETE A SPECIAL REVIEW AND DETERMINE WHETHER THE JAPANESE GOVERNMENT UNFAIRLY FAVORS DOMESTIC SUPER COMPUTER MAKERS WE'RE MAKING A TRANSITION INTO A NEW WAY OF DOING BUSINESS WITH JAPAN SAID U. S. TRADE REPRESENTATIVE MICKEY KANTOR THERE'S NO MORE STATUS QUO HE SAID THE ADMINISTRATION'S INITIAL THRUST FEATURES THE RENEWAL OF SUPER THREE HUNDRED ONE AS A GET TOUGH SIGNAL TO JAPAN UNDER THAT PROVISION THE U. S. TARGETS COUNTRIES ENGAGED IN A PATTERN OF UNFAIR TRADE PRACTICES AND NEGOTIATES TO END THOSE PRACTICES IF NO AGREEMENT IS REACHED WITHIN EIGHTEEN MONTHS THE U. S. WOULD RETALIATE GENERALLY BY IMPOSING PUNITIVE TARIFFS ON IMPORTS FROM THE TARGETED COUNTRY CONGRESS PASSED SUPER THREE HUNDRED ONE IN NINETEEN EIGHTY EIGHT TO FORCE THE BUSH ADMINISTRATION TO ADOPT A MORE MILITANT TRADE POLICY IN NINETEEN EIGHTY NINE THE U. S. TARGETED JAPAN BRAZIL AND INDIA AND EVENTUALLY WON CONCESSIONS FROM THE FIRST TWO BEFORE THE LAW EXPIRED IN NINETEEN NINETY TRADE EXPERTS SAID THE CLINTON ADMINISTRATION ALREADY HAS LEGAL AUTHORITY TO GO AFTER COUNTRIES WITHOUT SUPER THREE HUNDRED ONE BUT BY ADOPTING THE PROVISION THROUGH EXECUTIVE ORDER THE ADMINISTRATION WOULD CLEARLY SIGNAL TO JAPAN THAT IT PLANS A CONFRONTATIONAL STRATEGY AND DOESN'T NEED TO BE EGGED ON BY CONGRESS THE RISK SAID I. M. DESTLER A JAPAN SPECIALIST AT THE UNIVERSITY OF MARYLAND IS THAT YOU GENERATE A NATIONALISTIC REACTION IN JAPAN AND UNDERCUT THE GOALS YOU SEEK ALONG WITH SUPER THREE HUNDRED ONE THE U. S. PLANS TO ELEVATE A FIGHT OVER CELLULAR TELEPHONES IN ORDER TO HIGHLIGHT THE CLOSED NATURE OF THE JAPANESE MARKET MOTOROLA INCORPORATED COMPLAINS OF BEING DENIED QUOTE COMPARABLE QUOTE ACCESS TO THE JAPANESE CELLULAR TELEPHONE MARKET DESPITE A TRADE AGREEMENT PROMISING MOTOROLA AN OPEN MARKET THE DISPUTE CENTERS ON AN AREA SOUTH OF TOKYO WHERE THE TELECOMMUNICATIONS MINISTRY PAIRED MOTOROLA WITH A COMPANY THAT ALSO REPRESENTS MOTOROLA'S MAJOR JAPANESE RIVAL NIPPON TELEGRAPH AND TELEPHONE CORPORATION MOTOROLA HAS SAID THAT ITS PARTNER SPENDS MOST OF ITS TIME PUSHING N. T. T.'S TECHNOLOGY NOW MOTOROLA WANTS THE COMPANY TO PLEDGE TO PROMOTE MOTOROLA'S SYSTEM AND FOR THE TELECOMMUNICATIONS MINISTRY TO POLICE THOSE PLEDGES U. S. OFFICIALS SAID THAT THE MINISTRY DIDN'T MAKE ANY MOVE YESTERDAY TO RESOLVE THE CONTROVERSY AS A RESULT THEY EXPECT TO ANNOUNCE TODAY THAT TOKYO VIOLATED THE CELLULAR DEAL THE FIRST STEP IN IMPOSING SANCTIONS UNDER U. S. TRADE LAW THE ADMINISTRATION WOULD ANNOUNCE THIRTY DAYS LATER A PRELIMINARY LIST OF PRODUCTS ON WHICH THE U. S. WOULD IMPOSE PUNITIVE TARIFFS TRADE OFFICIALS LOOK FOR PRODUCTS THAT ARE IMPORTANT TO JAPAN'S TRADE AND ARE ALSO AVAILABLE FROM U. S. SOURCES FOR INSTANCE THE U. S. WOULDN'T PROPOSE TARIFFS ON VIDEOCASSETTE RECORDERS WHICH AREN'T PRODUCED DOMESTICALLY BUT ON ITEMS SUCH AS COMPUTERS AND POWER TOOLS WHICH ARE IN A DISPUTE OVER CELLULAR TELEPHONES THE U. S. PROBABLY WOULD TRY TO SLAP TARIFFS ON JAPANESE EXPORTS OF THOSE GOODS AFTER THE PRELIMINARY LIST IS PUBLISHED THE U. S. WILL HOLD A HEARING ON THE ITEMS CHOSEN IN ORDER TO GIVE DOMESTIC INDUSTRIES A CHANCE TO SAY WHETHER THE TARIFFS WOULD HARM THEM LATER ON THE U. S. WOULD PUBLISH A FINAL LIST OF SANCTION TARGETS THEN FINALLY IMPOSE THE TARIFFS THE WHOLE PROCESS CAN TAKE MORE THAN THREE MONTHS THAT'S ON PURPOSE THE IDEA OF TRADE SANCTIONS ISN'T TO IMPOSE TARIFFS BUT TO FORCE A COUNTRY TO ELIMINATE PRACTICES THE U. S. FINDS OBJECTIONABLE SIMILARLY SUPER THREE HUNDRED ONE ENVISIONS AN EIGHTEEN MONTH INVESTIGATION TO GIVE THE U. S. TIME TO TWIST THE ARMS OF ITS TRADE ADVERSARIES JAPANESE GOVERNMENT OFFICIALS DECLINED TO SAY YESTERDAY WHETHER THEY WILL OFFER LAST MINUTE CONCESSIONS TO STAVE OFF THE U. S. THREAT ON CELLULAR PHONES BUT SOME OFFICIALS SAID THAT PRIME MINISTER MORIHIRO HOSOKAWA WILL MEET SOON WITH HIS ADVISERS TO TRY TO CRAFT A NEW RESPONSE TO U. S. TRADE COMPLAINTS WE WILL CONTINUE OUR VOLUNTARY PATH TO DEREGULATE AND OPEN UP MARKETS AN OFFICIAL SAID U. S. TRADE OFFICIALS SAID THEY ARE TARGETING THE MOTOROLA CASE BECAUSE THEY HAVE A STRONG CASE THERE INDEED THE CLINTON ADMINISTRATION MOVED UP THE DATE WHEN IT WOULD ANNOUNCE A FINDING BY SIX WEEKS UNTIL JUST AFTER THE TRADE SUMMIT SO IT COULD MAKE IT A TEST CASE OF U. S. JAPANESE TRADE RELATIONS WITH THE SUPER COMPUTER DISPUTE WHICH TOKYO TRIED TO DEFUSE YESTERDAY THE U. S. CASE IS MUCH WEAKER JAPANESE OFFICIALS SAY YESTERDAY'S CONTRACT AWARD TO THE I. B. M. GROUP MEANS SIX OF THE PAST ELEVEN PUBLIC SUPER COMPUTER BIDS HAVE GONE TO U. S. MAKERS IF THIS CAN BE CALLED NOT FAIR THERE IS NO SUCH THING AS A FAIR PROCESS SAID AN OFFICIAL AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY U. S. TRADE OFFICIALS COMPLAIN THAT JAPAN IS SIMPLY TRYING TO BUY OFF THE U. S. INDUSTRY WITH THE AWARDS U. S. COMPANIES HAVEN'T WON HEAD TO HEAD COMPETITION WITH JAPANESE COMPANIES WASHINGTON COMPLAINS BUT THE U. S. POSITION ON SUPERCOMPUTERS IN JAPAN IS UNDERCUT BY GOVERNMENT PRACTICES AT HOME U. S. AGENCIES RARELY IF EVER BUY FOREIGN SUPERCOMPUTERS PARTLY BECAUSE THEY KNOW SUCH PURCHASES WILL CAUSE THEM POLITICAL GRIEF IN ADDITION CRAY RESEARCH INCORPORATED THE BIGGEST U. S. SUPER COMPUTER MAKER SAID IT DOESN'T WANT THE U. S. TO IMPOSE TRADE SANCTIONS WHICH COULD LEAD TO PUNITIVE TARIFFS ON CRAY'S IMPORTS CRAY BUYS ONE HUNDRED MILLION DOLLARS ANNUALLY IN COMPUTER CHIPS AND OTHER CRITICAL COMPONENTS FROM JAPANESE SUPPLIERS A SPOKESMAN ESTIMATED I DOUBT OUR SUPPLIERS WANT TO SEE SANCTIONS HE SAID QUENTIN HARDY IN TOKYO CONTRIBUTED TO THIS ARTICLE WAXMAN INDUSTRIES INCORPORATED REPORTED A SIXTY PERCENT DECLINE IN NET INCOME FOR THE FISCAL SECOND QUARTER AND SAID IT PLANS TO REFINANCE ABOUT ONE HUNDRED SIXTY FIVE MILLION DOLLARS IN DOMESTIC DEBT FOR THE QUARTER ENDED DECEMBER THIRTY FIRST THE BEDFORD HEIGHTS OHIO COMPANY REPORTED NET INCOME OF SEVENTY FOUR THOUSAND DOLLARS OR ONE CENT A SHARE COMPARED WITH NET INCOME OF ONE HUNDRED EIGHTY SIX THOUSAND DOLLARS OR TWO CENTS A SHARE IN THE YEAR EARLIER QUARTER SALES FELL SIX POINT FOUR PERCENT TO EIGHTY FIVE POINT FOUR MILLION DOLLARS FROM NINETY ONE POINT ONE MILLION DOLLARS WAXMAN A SUPPLIER OF PARTS AND EQUIPMENT TO THE HOME REPAIR AND REMODELING MARKET SAID IT HAS BEEN WORKING WITH MERRILL LYNCH AND COMPANY AND A UNIT OF CITICORP FOR THE PAST SIX WEEKS TO REFINANCE ITS DOMESTIC BANK DEBT A SPOKESMAN FOR THE COMPANY DECLINED TO OUTLINE POSSIBLE REFINANCING PLANS WAXMAN ADDED THAT IT REACHED AN AGREEMENT WITH CANADIAN LENDERS THAT WOULD ALLOW ITS IDEAL PLUMBING PARTS UNIT MORE FINANCIAL FLEXIBILITY BY DEFERRING CERTAIN DEBT PAYMENTS LIBERTY BROKERAGE INVESTMENT COMPANY A MAJOR BROKER FOR PRIMARY DEALERS IN U. S. TREASURY SECURITIES SAID IT AGREED TO PROVIDE PRICING DATA TO BOTH DOW JONES TELERATE AND REUTERS FINANCIAL DATA SERVICES THE AGREEMENT GIVES DOW JONES TELERATE A SECOND SIGNIFICANT STREAM OF INTERDEALER TREASURY SECURITIES PRICING DATA UNDER A LONG TERM CONTRACT DOW JONES TELERATE ALREADY PROVIDES DATA FROM BROKERAGE FIRM CANTOR FITZGERALD AND COMPANY THE LIBERTY AGREEMENT DOESN'T AFFECT ITS ARRANGEMENT WITH CANTOR A DOW JONES SPOKESMAN SAID QUOTE WE FELT THAT THE MARKETS WOULD BE INTERESTED IN SEEING THE LIBERTY INFORMATION QUOTE A LIBERTY SPOKESMAN SAID HE SAID THE COMPANY WASN'T UNDER ANY GOVERNMENT PRESSURE TO MAKE THE DATA MORE AVAILABLE BUT ADDED IT IS VERY CLEAR THAT REGULATORY AGENCIES WANT AS WIDE A DISTRIBUTION AS POSSIBLE AND ONE THAT IS AS MEANINGFUL AS POSSIBLE THE LIBERTY MOVE PARTLY REFLECTS THE GROWING IMPORTANCE OF SHORT TERM BOND DATA ON THE MARKETS SOME ANALYSTS AND BOND TRADERS SAY CANTOR FITZGERALD'S STRENGTH IS IN LONGER TERM FIXED INCOME SECURITIES PARTICULARLY THE THIRTY YEAR BOND LIBERTY'S SPECIALTY IS IN SHORTER TERM NOTES TRADERS SAY HOWEVER STUART FRASER A CANTOR SENIOR MANAGING DIRECTOR WHO RUNS THE FIRM'S BROKERAGE BUSINESS SAID I DON'T THINK ANY ONE INTERDEALER BROKER DOMINATES THE SHORT END OF THE MARKET THE MOVE IS A BIG BOOST TO LIBERTY BECAUSE TELERATE AND REUTERS TOGETHER REPRESENT THE BULK OF COMPUTER SCREENS ON THE BOND MARKET THE AGREEMENTS GIVE US THE WIDEST POSSIBLE DISTRIBUTION WITH EUROPEAN AND ASIAN COVERAGE AS WELL AS NORTH AMERICA THE LIBERTY SPOKESMAN SAID THE AGREEMENTS ARE NONEXCLUSIVE LIBERTY SAID IT WOULD CONSIDER OTHER VENDORS LIBERTY FORMED IN NINETEEN EIGHTY SIX IS OWNED BY ABOUT A DOZEN PRIMARY DEALERS IN U. S. GOVERNMENT SECURITIES AND OTHER INVESTORS INCLUDING MCGRAW HILL INCORPORATED BOTH REUTERS THE INFORMATION SERVICE UNIT OF REUTERS HOLDINGS P. L. C. AND DOW JONES TELERATE A UNIT OF DOW JONES AND COMPANY PLAN TO BEGIN OFFERING THE LIBERTY DATA ON TREASURY SECURITIES LATER THIS YEAR LIBERTY'S DATA ARE SIGNIFICANT TO THE MARKET BECAUSE THEY LIKE CANTOR'S DATA REPRESENT ATTRIBUTABLE TRADES OR ACTUAL TRADES REPORTED BY PRIMARY DEALERS IN THE TREASURY MARKET LIBERTY IS ALSO PART OF GOVPX A GOVERNMENT BOND DATA DISTRIBUTOR FORMED BY U. S. TREASURY SECURITY PRIMARY DEALERS ALTHOUGH GOVPX TRADES ARE UNATTRIBUTED THE GOVPX DATA ARE ALREADY AVAILABLE ON REUTERS DOW JONES ALSO PUBLISHES THE WALL STREET JOURNAL BARRON'S AND OTHER PUBLICATIONS ELECTRONIC BUSINESS INFORMATION SERVICES AND COMMUNITY NEWSPAPERS THE PHENOMENON OF FAME BEFORE ACCOMPLISHMENT IS NOT RARE IN THIS IMPATIENT ERA BUT BY AND LARGE IT HAS SKIRTED SPORTS THE CROWDED CALENDAR PROVIDES MORE THAN ENOUGH WINNERS TO SATISFY THE MOST VORACIOUS CELEBRITY WORSHIPERS AND THEN WE HAVE DAN JANSEN THE SPEED SKATER HE HAD FAILED AND FAILED AGAIN IN THE OLYMPICS THE ONE COMPETITION AMERICANS NOTICE IN HIS OBSCURE PURSUIT YET THAT ONLY SERVED TO ENHANCE HIS STATURE HANDSOME HARDWORKING AND BLAND HE IS APPARENTLY THE SORT OF MAN WE YEARN TO ADMIRE WITH OR WITHOUT MUCH EXCUSE EVEN IN DEFEAT HIS PICTURE WAS PICKED TO GRACE BOXES OF KELLOGG'S CORN FLAKES WHAT COULD HE EXPECT IN VICTORY WHEATIES WE MIGHT NEVER FIND OUT THE TWENTY EIGHT YEAR OLD MILWAUKEEAN CAME YESTERDAY AFTERNOON TO THE GREAT CEILINGED HAMAR OLYMPIC HALL THE MOST IMPRESSIVE INDOOR VENUE OF THESE WINTER GAMES AS THE STRONG FAVORITE IN HIS FIVE HUNDRED METER SPECIALTY AS HE WAS IN THE PREVIOUS TWO OLYMPICS AND AS HE HAD IN THREE OTHER OF THESE AFFAIRS HE FINISHED OFF THE MEDAL STAND A DISTANT EIGHTH HIS DOWNFALL WAS A SINGLE STEP ON THE RACE'S FINAL TURN HIS LEFT SKATE SLIPPED KNOCKING HIM OUT OF KILTER AND HE HAD TO EXTEND A HAND TO RIGHT HIMSELF HE DID AND FINISHED IN A TIME OF THIRTY SIX POINT SIX EIGHT SECONDS ONLY ZERO POINT THREE FIVE SECOND BEHIND THAT OF WINNER ALEKSANDR GOLUBEV AN UNHERALDED RUSSIAN BUT IN A SPORT WHERE A FEW HUNDREDTHS OF A SECOND OFTEN SEPARATE WINNERS FROM ALSORANS THE GAP WAS GAPING QUOTE I DON'T KNOW WHY IT HAPPENED QUOTE MR. JANSEN SAID LATER I WAS FINE TO THAT POINT I FELT GOOD HAD A GOOD START AND MY FIRST TURN WAS SOLID IT WASN'T NORMAL TO SLIP AT THAT PART I TRIED TO GET IT BACK BUT I'D LOST MOMENTUM WITHOUT THE SLIP I THINK I WOULD HAVE WON THE RACE BY QUITE A BIT ANYONE SEARCHING FOR HISTORICAL COMPARISONS FOR MR. JANSEN'S PLIGHT COULD DO WORSE THAN SUMMON UP SAM SNEAD NO ONE STRUCK MORE GOLF BALLS BETTER THAN THE MAN FROM WEST VIRGINIA BUT HIS SPORT'S BIGGEST PRIZE THE U. S. OPEN ALWAYS ELUDED HIM A FEW TIMES IN BIZARRE FASHION AND HE'LL BE REMEMBERED AS MUCH FOR HIS DEFEATS THERE AS FOR HIS MANY TRIUMPHS MR. JANSEN TOO HAS BAGGED MANY A PRIZE AND THEY ARE IMPORTANT IN PLACES LIKE NORWAY WHERE SPEED SKATING AND SKATERS ARE REVERED THAT WAS EVIDENT FROM THE OVATION HE RECEIVED WHEN HE STEPPED TO THE STARTING LINE YESTERDAY BEFORE THE FULL HOUSE CROWD OF ELEVEN THOUSAND THAT HAS MADE THIS ONE OF THE GAMES' HOTTEST TICKETS HIS CREDITS INCLUDE MORE THAN FIFTY MEDALS ON THE WORLD CUP CIRCUIT AND TWENTY ODD FROM VARIOUS WORLD CHAMPIONSHIPS INCLUDING THE MOST RECENT MORE TO THE POINT THERE HAVE BEEN THREE SUB THIRTY SIX SECOND SPEED SKATING FIVE HUNDREDS POSTED SINCE THE DAWN OF CREATION AND ALL THREE ARE HIS THAT MAKES HIM THE FASTEST HUMAN EVER ON TWO FEET OVER FLAT TERRAIN HE OWNS THE WORLD RECORD OF THIRTY FIVE POINT SEVEN SIX SECONDS FOR THE DISTANCE SET JANUARY THIRTIETH AT THE WORLD SPRINT CHAMPIONSHIPS IN CALGARY BUT MR. JANSEN'S OLYMPIC TRAVAILS ARE BETTER KNOWN THE STUFF OF BOTH PATHOS AND COMMONER WOE HE STARTED OUT PROMISINGLY ENOUGH FINISHING FOURTH IN THE FIVE HUNDRED IN NINETEEN EIGHTY FOUR AS AN EIGHTEEN YEAR OLD OUTSIDER JUST GLAD TO BE THERE FOUR YEARS LATER HE CAME TO CALGARY AS THE FAVORITE IN THE EVENT BUT THE DAY OF THE RACE LEARNED THAT HIS SISTER HAD DIED OF LEUKEMIA HE DEBATED WHETHER TO COMPETE DID AND FELL A RARE OCCURRENCE A FEW DAYS LATER HE WAS BACK FOR THE ONE THOUSAND METER RACE ANOTHER USUALLY STRONG EVENT FOR HIM HE FELL AGAIN AT THE NINETEEN NINETY TWO ALBERTVILLE GAMES HE HAD EVEN STRONGER CREDENTIALS AND VOWED TO SHOW PEOPLE THE REAL ME ON ICE HE SKATED WITHOUT MISHAP BUT PLACED A DISTANT FOURTH IN THE FIVE HUNDRED AND A MORE DISTANT TWENTY SIXTH IN THE ONE THOUSAND THE ICE OF THE OUTDOOR RINK THERE TURNED WET AND SOFT BY AN UNSEASONABLE WARM SNAP DIDN'T SUIT HIS LONG STRIDING STYLE HE SAID HIS LOSSES WERE CAST IN SHARPER RELIEF BY THE VICTORIES OF BONNIE BLAIR HIS FRIEND AND TRAINING MATE SHE WON TWO GOLD MEDALS AT ALBERTVILLE TO GO WITH THE ONE SHE'D CAPTURED AT CALGARY SHE WELL MAY ADD A COUPLE MORE IN THE WOMEN'S FIVE HUNDRED SCHEDULED FOR SATURDAY AND THE ONE THOUSAND ON THE FOLLOWING WEDNESDAY ACCORDING TO BOTH MR. JANSEN AND HIS COACH OLYMPIC EX CHAMP PETER MUELLER LILLEHAMMER WAS TO BE DIFFERENT NEW TRAINING ROUTINES HAD HONED THE SKATER'S BODY AND MARRIAGE AND A DAUGHTER BORN IN MAY HAD SET HIS PRIORITIES RIGHT THIS TIME MR. JANSEN ESCHEWED THE USUAL ATHLETE'S PROMISE TO DO HIS BEST SAYING HE EXPECTED TO WIN THE FIVE HUNDRED COACH MUELLER WENT FURTHER PREDICTING VICTORY BY A HALF SECOND MARGIN THAT'S THE SPEEDSKATING EQUIVALENT OF A RACE TRACK FURLONG DAN'S NEVER BEEN IN BETTER PHYSICAL OR MENTAL SHAPE HE HASN'T HAD A BAD DAY ON ICE ALL WINTER MR. MUELLER DECLARED NEGATIVE THOUGHTS WERE NOT TO BE ENTERTAINED WHEN A NEWSMAN BEGAN A PRESS CONFERENCE QUESTION FRIDAY WITH THE WORDS QUOTE LOOKING BACK QUOTE THE SKATER CUT HIM OFF I DON'T WANT TO LOOK BACK SAID HE BUT INEVITABLY HE WAS ASKED TO DO THAT AFTER YESTERDAY'S RACE AND NO DOUBT HE WILL BE AGAIN THE QUERY WAS A PECULIAR ONE DID HE ASCRIBE HIS OLYMPIC SETBACKS TO A FORCE OUT OF HIS POWER INSTEAD OF SHRUGGING IT OFF HE ANSWERED MAYBE IT WASN'T MEANT TO BE FOR ME HE SAID EVERYBODY KNOWS I'M THE BEST IN THAT RACE BUT IT WASN'T FOR ME TODAY UPSTAIRS IN THE MEDALISTS' PRESS CONFERENCE THE WINNERS WERE SAYING MUCH THE SAME THING JANSEN IS THE FASTEST SPRINTER ON EARTH SO EIGHTH PLACE TODAY WAS NOT PROPER SAID THE RUSSIAN SERGEI KLEVCHENYA THE RUNNER UP QUOTE HE SHOULD DO BETTER IN THE ONE THOUSAND QUOTE THAT RACE PROBABLY MR. JANSEN'S LAST AS AN OLYMPIAN IS SCHEDULED FOR FRIDAY AND INDEED HE PROBABLY WILL DO BETTER BUT MAYBE HE WON'T AS I'D TELL MY KIDS WHEN THEY WERE SMALL THE REASON THEY PLAY ALL THOSE GAMES AND RUN ALL THOSE RACES IS TO FIND OUT WHO'S BEST IF WE COULD FIGURE THAT OUT IN ADVANCE WHO'D BOTHER TO WATCH MAYBE INTERACTIVE T. V. ISN'T SUCH A GREAT IDEA AFTER ALL FOR THE FULL TWO WEEKS OF C. B. S. INCORPORATED'S COVERAGE OF THE NINETEEN NINETY FOUR WINTER OLYMPIC GAMES THE PRODIGY ON LINE COMPUTER SERVICE IS OFFERING SUBSCRIBERS A CHANCE TO QUOTE CHAT QUOTE ABOUT THE PROGRAMMING WITH C. B. S. PERSONNEL IT ISN'T ALWAYS PRETTY THIS IS BY FAR THE WORST COVERAGE EVER ONE USER RAILED IN A COMPUTER MESSAGE ZAPPED ALL THE WAY TO LILLEHAMMER NORWAY REFERRING TO C. B. S.'S TAPED STORIES HE COMPLAINED ABOUT THE DIVERSIONARY HUMAN INTEREST JUNK OTHERS WONDERED WHO CARED ABOUT PAULA ZAHN'S INTERVIEW OF SOMEONE NAMED LILLY HAMMER OR THE TAPED STORY ABOUT A NORWEGIAN FOLK SINGER NAMED SPUTNIK T. V. COLOR COMMENTARY OF AN ENTIRELY DIFFERENT STRIPE A FEW CITE THE NETWORK'S OUTSTANDING COVERAGE BUT OTHERS INVOKE LESS KINDLY ADJECTIVES INCLUDING GAG ARRGGHH AND GET WITH THE PROGRAM FOR C. B. S. WHICH AT ONE TIME HAD ACTUALLY BEEN A PARTNER IN THE PRODIGY VENTURE WITH CURRENT CO OWNERS INTERNATIONAL BUSINESS MACHINES CORPORATION AND SEARS ROEBUCK AND COMPANY THE NEW EFFORT IS A FORAY INTO ELECTRONIC INTERACTIVITY PRODIGY GETS SOME FREE PROMOTION ON C. B. S.'S LATE NIGHT COVERAGE WHILE THE ELECTRONIC BULLETIN BOARD LETS C. B. S. SEND OUR OLYMPIC MESSAGE TO A NEW AUDIENCE OF TWO MILLION PRODIGY USERS A C. B. S. SPOKESMAN SAID BUT THE MESSAGE COMING BACK FROM CYBERSPACE IT SEEMS SOMETIMES COMES DOWN TO THIS MISSILE FROM AN IMPATIENT VIEWER ONE WORD STINKS SOME ON LINE COMMENTATORS ASKED C. B. S.'S STABLE OF COMMENTATORS TO QUOTE SHUT THEIR TRAPS QUOTE AND EASE UP ON THE QUOTE CONSTANT CHATTER QUOTE DURING THE OPENING CEREMONIES THE NETWORK'S EARLY ANNOUNCEMENT OF MEDAL WINNERS BEFORE THE EVENT IS TELEVISED ALSO HAS ANGERED MEDDLING COUCH OLYMPIANS IT TAKES AWAY ALL THE EXCITEMENT OF THE COMPETITION WROTE ONE PRODIGY USER BUT C. B. S. HOST PAT O'BRIEN SEEMED TO DRUM UP THE MOST INTEREST ON AN ELECTRONIC BULLETIN BOARD TITLED ASK PAT O'BRIEN HE RECEIVED HUNDREDS OF VIEWER MESSAGES ASKING ABOUT SUCH BURNING ISSUES AS PAT WHY WAS THERE SO LITTLE COVERAGE OF THE FIRST TWO ROUNDS OF THE LUGE AND HEY PAT WOULD YOU PLEASE SAY HEY TO MY COUSIN JIMMY DIMA A C. B. S. EMPLOYEE MR. O'BRIEN RESPONDED THAT YES HE WOULD MUCH OF THE ON LINE DISCUSSION CENTERED ON C. B. S. COVERAGE OF THE HARDING KERRIGAN FIGURE SKATING AFFAIR WHICH MANY COMPLAINED WAS TOO LENGTHY TO CONTINUED COMPLAINTS MR. O'BRIEN FINALLY COUNTERED JUST A REMINDER WE DIDN'T CREATE THE TONYA HARDING SLASH NANCY KERRIGAN STORY KILLING THE MESSENGER JUST DOESN'T WORK ANYMORE QUOTE APPARENTLY VIEWERS LIKE THE NEW WAY OF TALKING BACK TO THE T. V. SET GEORGE SCHWEITZER C. B. S. SENIOR VICE PRESIDENT SAID THE RESPONSE TO THE SERVICE HAS BEEN OVERWHELMING BUT IN SUCH AN OPEN FORUM ANYONE NOT JUST C. B. S. IS A TARGET IN A SLIGHTLY OMINOUS NOTE ONE PRODIGY SUBSCRIBER SIMPLY ASKED I WOULD LIKE TO KNOW WHO IS RESPONSIBLE FOR THOSE HORRIBLE OUTFITS THE AMERICAN TEAM WEARS DURING THE OPENING CEREMONIES PAPER PRODUCTS ONE OF THE BEST SUPERMARKET BUYS IN THE NINETEEN NINETIES ARE BECOMING MORE EXPENSIVE FOR MORE THAN THREE YEARS CONSUMERS REAPED THE SPOILS OF PRICING BATTLES THROUGHOUT THE PAPER MARKET RETAIL PRICES OF BATHROOM TISSUE FACIAL TISSUE PAPER TOWELS AND NAPKINS REMAINED STUBBORNLY LOW EVEN IN THE FACE OF A SLOWLY IMPROVING ECONOMY BUT RECENT DATA SHOW THAT THE PRICE WAR IS FINALLY WINDING DOWN THOUGH THEY STILL HOVER AROUND NINETEEN NINETY LEVELS UNIT PRICES OF MOST TYPES OF PAPER PRODUCTS HAVE BEGUN TO INCREASE CONSUMER PRODUCT ANALYSTS SAY MANUFACTURERS DRIVEN IN PART BY A SLIGHT FOURTH QUARTER INCREASE IN PULP PRICES HAVE STARTED TESTING THE MARKET'S APPETITE FOR RETAIL PRICE HIKES FOR EXAMPLE TOILET TISSUE PRICES INCREASED EIGHT POINT NINE PERCENT TO ONE DOLLAR AND THIRTY FOUR CENTS A UNIT DURING THE NINETEEN NINETY THREE FOURTH QUARTER COMPARED WITH ONE DOLLAR AND TWENTY THREE CENTS A UNIT IN THE NINETEEN NINETY TWO PERIOD ACCORDING TO INFORMATION RESOURCES INCORPORATED'S INFOSCAN SERVICE WHAT'S MORE ANDREW SHORE AN ANALYST WITH PAINEWEBBER INCORPORATED SAYS PROCTER AND GAMBLE COMPANY MAKER OF PUFFS FACIAL TISSUE BOUNTY PAPER TOWELS AND CHARMIN BATHROOM TISSUE RAISED PRICES ABOUT TWO PERCENT IN THE FOURTH QUARTER WITH OTHER MANUFACTURERS FOLLOWING SUIT P. AND G. DECLINED TO COMMENT COMPANIES QUOTE WILL TRY TO KEEP EDGING PRICES UPWARD QUOTE MR. SHORE SAYS BUT THEY'LL LIKELY FIND THAT THEY WON'T BE ABLE TO RAISE PRICES AS THEY HAVE IN THE PAST PRIVATE LABEL PRODUCTS HAVE PERFORMED SIMILARLY TO BRANDED PRODUCTS DESPITE THEIR LOWER UNIT PRICES STILL PRIVATE LABEL MAINTAINS A STRONG POSITION IN THE FOUR MAJOR TISSUE MARKETS A FACT THAT COULD TEMPER PRICE INCREASES THE THREAT OF PRIVATE LABEL OR MORE ACCURATELY THE LINGERING THREAT OF PRIVATE LABEL CONTINUES TO BE IMPORTANT IN TERMS OF PRICING SAYS BRUCE KIRK AN ANALYST WITH S. G. WARBURG EVEN WITH PRICES PERCOLATING UPWARD THE PAPER PRODUCTS MARKET REMAINS AT OR NEAR NINETEEN NINETY LEVELS AT THAT TIME INTENSIFIED COMPETITION A FALTERING ECONOMY AND A WEAK PULP MARKET COMBINED TO DEPRESS PRICES THE PROLONGED RETAILING BATTLE CONTRIBUTED TO SCOTT PAPER COMPANY'S RECENTLY ANNOUNCED RESTRUCTURING THAT INCLUDED A THREE HUNDRED EIGHTY ONE MILLION DOLLAR AFTER TAX CHARGE ANALYSTS SAY THE RELENTLESS PRICE COMPETITION AMONG PAPER PRODUCTS REFLECTS A DEARTH OF VALUE ADDED INNOVATIONS THERE HAVE BEEN A FEW MODEST PRODUCT DEVELOPMENTS SUCH AS FACIAL TISSUE LACED WITH LOTION AND PAPER TOWELS WITH ADDED PERFORATIONS TO ALLOW CONSUMERS TO USE ONLY THE AMOUNT THEY NEED NONETHELESS THERE'S NO DISCERNIBLE MARKET LEADER OUT FRONT WITH A FAR BETTER OR DIFFERENTIATED PRODUCT THAT REALLY ALLOWS THEM TO CONTROL THE CATEGORY MR. KIRK SAYS BATHROOM TISSUE MARKETERS HAVE FACED THE GREATEST PRICE COMPETITION IN THE PAST SEVERAL YEARS PARTLY BECAUSE OF KIMBERLYCLARK CORPORATION'S ENTRY INTO THE MARKET IN NINETEEN NINETY WITH A TOILET TISSUE EXTENSION OF ITS POPULAR KLEENEX FACIAL TISSUE BRAND WHILE THAT KLEENEX PRODUCT ISN'T YET AVAILABLE NATIONWIDE ITS SALES GREW ELEVEN PERCENT TO THIRTY ONE POINT THREE MILLION DOLLARS IN THE FOURTH QUARTER ACCORDING TO INFORMATION RESOURCES THE INTRODUCTION OF KLEENEX REALLY TRIGGERED THE TIGHT PRICING SAYS THOMAS SHUFELT A MARKETING EXECUTIVE AT GEORGIAPACIFIC CORPORATION WHICH PRODUCES ANGEL SOFT BATHROOM TISSUE BUT THE PRICES HAVE FIRMED UP SOME RECENTLY AND WE HOPE THAT WE CAN GET SOME RELIEF IN RESPONSE TO YOUR FEBRUARY THIRD EDITORIAL QUOTE LABOR BLOWS RIGHT WHISTLE QUOTE YOUR MISINTERPRETATION OF THE FACTS IS A DISSERVICE TO YOUR READERS AND TO IOWA'S ECONOMIC DEVELOPMENT EFFORTS YOUR COMMENTS CENTER AROUND IPSCO A CANADIAN STEEL COMPANY THAT PLANS TO LOCATE A THREE HUNDRED SIXTY MILLION DOLLAR FACILITY AND INITIALLY EMPLOY THREE HUNDRED PEOPLE ALONG THE MISSISSIPPI RIVER IN MUSCATINE COUNTY THE BENEFITS OF THIS PROJECT FAR OUTWEIGH THE FINANCIAL INCENTIVE PACKAGE PROPOSED BY STATE AND LOCAL OFFICIALS YOUR STATEMENT THAT THE STATE WOULD PAY TWO HUNDRED FORTY THREE THOUSAND DOLLARS PER JOB IS WRONG AND MISREPRESENTS IOWA'S DEVELOPMENT STRATEGY THE FACTS ARE THESE IOWA IS INVESTING THREE MILLION DOLLARS IN UPFRONT ASSISTANCE TO HELP IPSCO TRAIN WELL PAID MANUFACTURING WORKERS AND DEFRAY START UP COSTS THE REMAINING ASSISTANCE ALL COMES IN THE FORM OF TAX INCENTIVES TIED TO THE ENORMOUS INVESTMENT IN MACHINERY AND EQUIPMENT REQUIRED TO BUILD A COMPETITIVE MANUFACTURING PLANT INDEED INVESTMENT TAX CREDITS AND EXEMPTION OF MACHINERY AND EQUIPMENT INVESTMENTS FROM PROPERTY TAXES ARE TWO BASIC ELEMENTS OF EVERY STATE'S ECONOMIC CLIMATE THE SEVENTY MILLION DOLLARS IN TAXES NOT COLLECTED FROM IPSCO OVER THE COURSE OF TWENTY YEARS MERELY MAKES US COMPETITIVE WITH OTHER STATES THAT DON'T TAX EQUIPMENT ADDITIONAL RELATED AND SUPPLIER MANUFACTURERS LIKELY TO BE ATTRACTED TO SERVE IPSCO THE INVESTMENT PACKAGE THAT WE HAVE OFFERED IPSCO IS AVAILABLE TO ANY COMPANY PLANNING A MAJOR EXPANSION IN IOWA AND WE'VE HAD RESULTS WEYERHAUSER EASTMAN KODAK LENNOX AND MAYTAG ARE ONLY A FEW OF THE MANY COMPANIES THAT HAVE CREATED THOUSANDS OF JOBS IN IOWA MEANWHILE I'VE RECOMMENDED EXEMPTING ALL NEW MACHINERY AND EQUIPMENT FROM PROPERTY TAXATION WHEN THE LEGISLATURE APPROVES REPEAL OF THIS TAX WE WILL NO LONGER HAVE TO OVERCOME THIS IMPEDIMENT TO HIGH PAYING JOBS IN MANUFACTURING A. B. C. NEWS SAID IT REPRIMANDED TWO EMPLOYEES WHO STAGED A SCENE FOR A NEWS REPORT JANUARY TWENTY SIXTH THE REPORT WHICH AIRED ON QUOTE WORLD NEWS TONIGHT WITH PETER JENNINGS QUOTE SHOWED CORRESPONDENT COKIE ROBERTS WEARING A COAT IN FRONT OF AN ELECTRONICALLY IMPOSED CAPITOL HILL SCENE MR. JENNINGS UNAWARE THAT MS. ROBERTS WAS ACTUALLY IN A STUDIO SEVERAL TIMES TOLD VIEWERS THAT SHE WAS LIVE AT THE CAPITOL MS. ROBERTS WORE THE COAT AT THE REQUEST OF THE NEWSCAST'S EXECUTIVE PRODUCER RICK KAPLAN BOTH MR. KAPLAN AND MS. ROBERTS WERE REPRIMANDED A. B. C. A UNIT OF CAPITAL CITIES SLASH A. B. C. INCORPORATED SAID THE INCIDENT WAS A MISTAKE EVEN THOUGH IT HAD NO EDITORIAL EFFECT THE ACTION WAS SERIOUS BECAUSE IT MISLED OUR AUDIENCE SAID RICHARD WALD SENIOR VICE PRESIDENT IN A MEMO TO A. B. C. NEWS STAFF IT IS TWENTY DEGREES BELOW ZERO AND APPROACHING MIDNIGHT AS THE HUMAN ICICLES SKI INTO CAMP THEY STASH THEIR SKIS IN A SNOWBANK AND ROLL UP THEIR NORWEGIAN FLAGS FOR THE NIGHT BUT BEFORE CRAWLING INTO THEIR TENTS IT'S TIME FOR SOME MITTEN SLAPPING GOSPEL MUSIC QUOTE WE'RE GOING TO SEE THE KING QUOTE THEY SING NO ONE'S FREEZING THERE THE NEXT MORNING THE YOUNG CHRISTIANS OF NORWAY AWAKE STILL SHIVERING THEIR MILK IS FROZEN THEIR CAVIAR BREAKFAST PASTE IS FROZEN THEIR BREAD IS FROZEN THEIR HOT DOGS ARE FROZEN THIS IS HEAVEN FOR US IT'S AS CLOSE AS YOU CAN GET ON EARTH SAYS SEVENTEEN YEAR OLD SIRI DALSMO THE RACE IS ABOUT TO START MAKE THAT THE RACE THE THIRTY KILOMETER MEN'S CROSS COUNTRY RACE IS THE OPENING OLYMPIC SHOWCASE FOR NORWAY'S SKIING IDOLS AND NORWEGIANS WILL PUT UP WITH ALMOST ANYTHING EVEN FROZEN CAVIAR TO WAVE A FLAG OR RING A BELL IN SUPPORT OF THEIR HEROES AS THEY SKI PAST IF NORWEGIANS WIN SAYS MS. DALSMO STOMPING HER FEET TO WARD OFF FROSTBITE IT'S ALL WORTH IT IT IS OF COURSE THOMAS ALSGAARD AND BJORN DAHLIE THEIR LUNGS BURNING FROM THE POLAR AIR CAPTURE THE GOLD AND SILVER MEDALS AND ARE SERENADED ON TELEVISION BY A YOUNG BOY SINGING A NORWEGIAN FOLK SONG MR. ALSGAARD BLUSHES AND DEDICATES HIS MEDAL TO THE LEGIONS WHO CHEERED HIM ON INSPIRING HE SAYS THE NORWEGIANS' ATTACHMENT TO CROSS COUNTRY RACING IS AKIN TO THE AMERICAN MANIA FOR THE HOME FOOTBALL TEAM BUT THE NORWEGIANS TAKE TAILGATING TO EXTREMES NOT CONTENT TO THROW A COUPLE OF BURGERS ON A GRILL IN THE PARKING LOT THEY SKI INTO THE FOREST PITCH TENTS IN THE SNOW ALONGSIDE THE RACE COURSE AND PARTY FOR DAYS QUOTE YOU MAY FIND THIS PECULIAR QUOTE SAYS BJARNE HJELMTVEDT WHO MARKETS SEWING NOTIONS QUOTE BUT YOU MUST REMEMBER THAT WE NORWEGIANS ARE BORN WITH SKIS ON OUR FEET OF COURSE THIS IS HARD ON OUR MOTHERS BUT THAT'S THE WAY IT IS A GENERATOR HUMS BEHIND HIS WELL APPOINTED PUP TENT PROVIDING ELECTRICITY FOR HIS TELEVISION IT WAS SEVENTEEN BELOW IN MY TENT WHEN I WOKE UP HE SAYS SWELLING WITH PRIDE A MORE TYPICAL TENT A TEPEE ACTUALLY IS THAT OF ARILD SANDSTEN WHO SHARES HIS SPACE WITH FRIEND TRULS RUUD AND THIS REPORTER MESSRS SANDSTEN AND RUUD DIG A HOLE IN THE SNOW FLOOR FOR A WOOD BURNING STOVE AND THEN EXTEND THE CHIMNEY THROUGH THE POINTED ROOF NEXT LEDGES ARE CARVED IN THE SNOW AND COVERED WITH REINDEER SKINS THE SLEEPING BAGS ARE UNROLLED ON TOP OF THE SKINS CAN'T DO BETTER THAN REINDEER SKIN FOR KEEPING WARM SAYS MR. RUUD A FORMER SHEEP FARMER WHO ANNUALLY HEADS TO THE MOUNTAINS TO HUNT ELK A LITTLE BOURBON HELPS TOO ADDS MR. SANDSTEN A MANAGEMENT CONSULTANT WHO ALSO HEADS AN OSLO OUTDOORS CLUB LET'S SAY SKOAL HE SAYS PASSING AROUND GLASSES FILLED WITH JIM BEAM HE INTRODUCES MORE ANTIFREEZE A BOTTLE OF AQUAVIT THE NORWEGIANS' POTATO AND CARAWAY SCHNAPPS AND PROCEEDS TO DEFTLY DEAL OUT SLICES OF DRY SALTED LAMB LEG ELK SAUSAGE AND A NORWEGIAN VERSION OF SPAM CALLED BOG ONCE THE SUN GOES DOWN THE FEAST CONTINUES WITH A POT OF VEGETABLE SOUP QUOTE WE'RE THREE LUCKY GUYS QUOTE HE SAYS LADLING OUT THE STEAMING SOUP IT'S MINUS TWENTY FIVE IT'S THE OLYMPICS WE'VE GOT SOUP THIS IS GREAT THE FIFTY YEAR OLD MR. SANDSTEN WAS THE ONE WHO FIRST PROPOSED TO THE LILLEHAMMER OLYMPIC ORGANIZING COMMITTEE THAT THE NORWEGIAN TRADITION OF TAILGATING CROSS COUNTRY RACES BE EXTENDED TO THE GAMES THIS IS A GOOD OCCASION FOR FAMILIES TO GO OUT AND BE IN NATURE HE SAYS IT WILL HELP INSPIRE THEM TO TAKE CARE OF OUR GREEN AREAS ORGANIZERS ESTIMATE THAT SEVERAL THOUSAND NORWEGIANS WILL BE CAMPING OUT ALONG THE RACE COURSE BEFORE THE OLYMPICS FINISH ON THIS NIGHT AS THE TEMPERATURE PLUMMETS MESSRS SANDSTEN AND RUUD VISIT THE TENTS IN THEIR AREA TO SEE THAT ALL IS WELL NINE YOUNG MEN WHO WALKED TWENTY FIVE MILES OVER THE MOUNTAINS KEEP WARM WITH A HEATED DISCUSSION OVER THE ETIQUETTE OF CROSS COUNTRY CHEERING BOOING IS BAD SPORTSMANSHIP SAYS CARSTEN JOHANSEN QUOTE WE CHEER FOR EVERYONE QUOTE EVEN THE SWEDES ASKS ONE OF THE OTHERS YES EVEN THOUGH LAST YEAR THE SWEDES BOOED THE NORWEGIANS AT A RACE IN NORWAY INSISTS MR. JOHANSEN OF COURSE WE CHEER MORE FOR THE NORWEGIANS THE FRIENDS PASS AROUND A BOTTLE OF STOMACH WARMING JAGERMEISTER A GERMAN LIBATION LET'S SAY SKOAL SAYS MR. SANDSTEN SKOAL SAYS EVERYONE NEXT STOP IS A TENT FULL OF FOURTEEN GIRL SCOUTS THEY ARE WARM AND GOBBLING DOWN BEEF STEW IT'S GOOD FOR THE GIRLS TO STRETCH THEIR LIMITS AND KNOW THEY CAN LIVE COMFORTABLY IN MINUS FIFTEEN MINUS TWENTY WEATHER SAYS SCOUT LEADER SISSEL KRISTIN OSTBY MR. SANDSTEN CHEERED BY THAT ATTITUDE ASKS FOR A SONG THE GIRLS HAPPILY RESPOND WITH A FOLK SONG ABOUT A MAN GOING FISHING NEARBY IS THE OSLO ADVENTURERS CLUB CO FOUNDER JOHN MOSVOLD SHOWS OFF THE PARTY TENT COMPLETE WITH A TELEVISION AND STEREO AFTER A COUPLE OF DAYS OF LAMBADA DANCING ON SKIS AND PLAYING VOLLEYBALL ON SKIS HIS GROUP IS EAGER FOR THE REAL RACES TO BEGIN AND TO GET WARM QUOTE THE BIG THING FOR TONIGHT IS THAT WE'RE GOING INTO LILLEHAMMER FOR SHOWERS QUOTE HE SAYS A SAUNA TOO THE COLD DRIVES MOST OF THE CAMPERS INTO THEIR SLEEPING BAGS SHORTLY AFTER MIDNIGHT WE'LL HAVE BACON AND EGGS IN THE MORNING MR. SANDSTEN TELLS HIS TENT MATES IF YOU GET COLD TONIGHT THINK OF BACON AND EGGS IN THE MORNING JUST AFTER THE BACON AND EGGS THREE COLLEGE STUDENTS FROM THE SOUTHERN PART OF NORWAY LURED BY THE SMELL STICK THEIR HEADS INTO THE TENT ASKING IF THEY CAN COME IN AND WARM UP THEIR FEET THEY HAD DRIVEN TWO HUNDRED MILES DURING THE NIGHT AND HAD PITCHED A TENT TOO SMALL FOR A STOVE THIS IS A ONCE IN A LIFETIME EXPERIENCE SAYS TORGEIR NILSEN SPEAKING OF THE OLYMPICS NOT THE COLD TOES IN NORWAY YOU JUST GET UP AND HEAD FOR THE COLD YOU DON'T HAVE MUCH CHOICE IN NORWAY IT'S ALWAYS COLD QUOTE HE AND HIS FRIENDS DECIDE TO BUILD AN IGLOO BUT ONLY AFTER THE RACE IS OVER AS THE STARTING TIME NEARS THE HOST OF CAMPERS AND THOUSANDS OF COUNTRYMEN WHO HAVE COME UP ONLY FOR THE DAY SEARCH FOR PLACES WARMED BY THE LATE MORNING SUN THEY DO THE WAVE THEY SHOUT ENCOURAGEMENT TO ALL THE RACERS EVEN THE SWEDES BUT THEY SAVE THE FLAG FLYING AND BELL RINGING FOR THE NORWEGIANS THE YOUNG CHRISTIANS AGAIN BREAK INTO SONG VICTORY IS OURS THEY SING OVER AND OVER VICTORY IS OURS IF ANYTHING IN THE OLD SOVIET UNION LIVED UP TO THE IMAGE OF THE RUSSIAN BEAR IT WAS THE OLYMPIC HOCKEY TEAM FEATURING GRUFF GRISLY VETERANS MANY OF THEM OFFICERS IN THE RED ARMY THE TEAM MAULED THE WORLD EVERY FOUR YEARS PUTTING ITS CLAWS ON ALL BUT TWO OF THE GOLD MEDALS SINCE NINETEEN FIFTY SIX THIS YEAR'S RUSSIAN TEAM STRIPPED OF THE OLD MENACING CCCP JERSEYS LOOKS MORE LIKE THE BEAR'S HUGGABLE CUBS IT IS THE YOUNGEST TO EVER SKATE OUT OF MOSCOW THERE'S MORE PEACH FUZZ THAN STUBBLE NOT A SINGLE PLAYER COMES FROM THE ARMY CLUB INDEED THE TEAM SHOWED ITS VULNERABILITY LOSING TO FINLAND YESTERDAY FIVE TO ZERO TO FALL TO ONE TO ONE RUSSIA BEAT NORWAY IN ITS OPENER QUOTE IT TAKES A LONG TIME TO BECOME A MASTER AT THIS GAME QUOTE MUSES VIKTOR KUZKIN A STAR DEFENSEMAN AND LIEUTENANT COLONEL ON THE GOLD MEDAL TEAMS OF NINETEEN SIXTY FOUR NINETEEN SIXTY EIGHT AND NINETEEN SEVENTY TWO UNFORTUNATELY AT EIGHTEEN THE KIDS ARE ALREADY TRYING TO BECOME PROFESSIONAL PLAYERS IN CANADA OR AMERICA SO IT GOES IN THE POST COMMUNIST SPORTS WORLD WHERE A CONTRACT WITH NORTH AMERICA'S NATIONAL HOCKEY LEAGUE GLITTERS MORE THAN A GOLD MEDAL AND CONGRATULATIONS FROM THE CENTRAL COMMITTEE OVER THE PAST FOUR YEARS FOR INSTANCE TWENTY TWO PLAYERS FROM THE CENTRAL SPORTS CLUB OF THE ARMY CSKA ONCE A VERITABLE FACTORY OF OLYMPIC HOCKEY TALENT HAVE DEFECTED TO THE N. H. L. INCLUDING STARS LIKE SERGEI FEDOROV AND VYACHESLAV FETISOV VIKTOR TIKHONOV THE CSKA AND OLYMPIC HEAD COACH IS STILL PROWLING BEHIND THE BENCH AND HE IS AS SURLY AS EVER ASKED WHETHER HE WOULD CONSIDER FOLLOWING THE LEAD OF HIS DEFECTING PLAYERS AND COACH IN THE N. H. L. THE OLD MASTER WHO HAS GUIDED FOUR OLYMPIC TEAMS STOMPS AWAY GRUMBLING YOU REPORTERS ALWAYS ASK THE SAME QUESTIONS I'M SICK OF IT THIS YEAR THOUGH HIS IRRITABILITY IS UNDERSTANDABLE THE GOLD MEDAL IS NO LONGER A VIRTUAL LOCK THE WANDERLUST OF MANY OF RUSSIA'S BEST FINALLY LEVELING THE INTERNATIONAL PLAYING ICE HIS TEAM DIDN'T COME TOGETHER UNTIL LATE JANUARY AND THEN IT WAS BARELY RECOGNIZABLE WITH ITS ROSTER OF UNPROVEN YOUTHFUL TALENT AND HE KNOWS HIS PLAYERS ARE MORE INTERESTED IN IMPRESSING THE UBIQUITOUS N. H. L. SCOUTS WITH THEIR INDIVIDUAL ABILITIES THAN LISTENING TO HIS HOARY LECTURES ABOUT TEAMWORK TODAY THE HALLOWED CSKA ARENA IS DEFILED WITH SPONSORS' LOGOS MCDONALD'S COCA COLA AND PITTSBURGH'S IRON CITY BEER ALTHOUGH THEY HAVE LOST MANY PLAYERS TO THE LURE OF THE WEST CSKA OFFICIALS ALSO OWE PLENTY TO THE N. H. L. AND CAPITALISM MR. KUZKIN'S OLD NUMBER FOUR JERSEY RECENTLY RETIRED HANGS ABOVE A RINK WHERE THE RUSSIAN PENGUINS NOW PLAY THE ARMY SQUAD HAVING BEEN RENAMED AFTER THE N. H. L.'S PITTSBURGH TEAM THAT RESCUED CSKA FROM FINANCIAL DISASTER BUT THEY DON'T HAVE TO LIKE IT THE TRIM FIFTY FOUR YEAR OLD MR. KUZKIN WHO COACHES THE RUSSIAN PENGUINS ACHES FOR THE DAYS WHEN PLAYERS SET OLYMPIC SUPREMACY AS THEIR HIGHEST GOAL IT WAS A DIFFERENT TIME THE GOLDEN ERA WE DIDN'T EVEN DREAM OF PLAYING PROFESSIONALLY HE REMEMBERS HE RECALLS A PLAYING CAREER WITH CSKA THAT BEGAN WHEN HE WAS EIGHTEEN AND ENDED YEARS BEFORE SUCH DREAMS WERE ALLOWED QUOTE OF COURSE QUOTE HE CONCEDES QUOTE IT WOULD HAVE BEEN INTERESTING EVERY ATHLETE WANTS TO TEST HIMSELF AT A HIGHER LEVEL SUCH A CHALLENGE IS THE ALTRUISTIC NOTE OF THE N. H. L.'S SIREN CALL THE BIG ENTICEMENT IS THE MONEY MR. FEDOROV RECENTLY RENEWED HIS CONTRACT WITH THE DETROIT RED WINGS FOR ELEVEN POINT SEVEN MILLION DOLLARS OVER FOUR YEARS MARK KELLY A HOCKEY SCOUT WHO REPRESENTS THE PITTSBURGH SIDE OF THE CSKA PENGUINS JOINT VENTURE CONCEDES THAT THE N. H. L. IS TARGETING MORE AND MORE YOUNG RUSSIAN STARS N. H. L. TEAMS ALREADY ARE SIZING UP PROMISING RUSSIAN SEVENTEEN YEAR OLDS FOR THIS YEAR'S DRAFT AND MOST IF NOT ALL OF THOSE DRAFTED WILL PACK THEIR BAGS MR. TIKHONOV HAS BEEN FIGHTING TO PERSUADE THE N. H. L. NOT TO POACH PLAYERS UNDER THE AGE OF TWENTY TWO BUT BY THE TIME THE NEXT WINTER OLYMPICS ARE HELD THE ISSUE COULD BE MOOT HOCKEY MAY FOLLOW BASKETBALL'S LEAD AND PERMIT PROFESSIONALS TO COMPETE IN THE GAMES LIKE THE U. S. HOOPSTERS' DREAM TEAM THE WORLD'S HOCKEY POWERHOUSES MIGHT BE ASSEMBLING SENSATIONAL ALL STAR SQUADS OF TOP PROFESSIONALS RUSSIA'S N. H. L. ELITE COULD THEN RETURN HOME FOR THE GAMES IT'S AN ATTRACTIVE PROSPECT BUT IT CERTAINLY ISN'T ENOUGH TO SATISFY THE OLD GUARD WE HAVE ONLY ONE DREAM HERE SAYS MR. KUZKIN AND THAT IS TO BRING THE TEAM BACK TO WHAT IT WAS BEFORE JOHN LABATT LIMITED SHUT DOWN ABOUT THIRTY PERCENT OF ITS DOMESTIC BEER PRODUCTION BY LOCKING OUT MORE THAN ONE THOUSAND WORKERS IN QUEBEC AFTER THEY REJECTED A CONTRACT PROPOSAL THE MOVE REFLECTS THE DETERMINATION OF CANADIAN BREWERS TO CUT COSTS BECAUSE OF AN EXPECTED INCREASE IN LOW PRICED IMPORTS FROM THE U. S. FOLLOWING LAST SUMMER'S BEER TRADE AGREEMENT QUOTE WE HAVE A SITUATION WHERE WE NEED TO BE COST COMPETITIVE WITH AMERICAN BREWERS THEY'RE GOING TO BE IN OUR SANDBOX WITHIN THE NEXT FEW MONTHS SAID LABATT SPOKESMAN ALAIN BOLDUC THE LOCKOUT WHICH TOOK EFFECT OVER THE WEEKEND HALTS PRODUCTION AT THE PLANT WHICH PRODUCES BEER FOR THE QUEBEC MARKET LABATT'S SECOND LARGEST IN CANADA AFTER ONTARIO MR. BOLDUC SAID THE COMPANY HAS UP TO THREE WEEKS OF INVENTORY TO CONTINUE SUPPLYING ITS DISTRIBUTION OUTLETS IN QUEBEC FRANCOIS LAPORTE SPOKESMAN FOR TEAMSTERS UNION LOCAL NINETEEN NINETY NINE SAID THERE WERE NO PLANS TO RESUME TALKS WITH THE COMPANY HE SAID THE UNION WAS WAITING FOR LABATT TO MAKE THE FIRST MOVE THE PROPOSED PACT WON THE APPROVAL OF A MAJORITY OF THE UNION'S EXECUTIVE COMMITTEE BUT IT WAS SOUNDLY DEFEATED BY SEVENTY ONE PERCENT OF THE UNION'S MEMBERSHIP DUPONT COMPANY SAID A FLORIDA JURY RULED IN ITS FAVOR IN A LAWSUIT BROUGHT BY TWO BLUEBERRY GROWERS WHO ALLEGED THAT THE COMPANY'S BENLATE DF FUNGICIDE PRODUCT HAD HARMED THEIR CROPS THE TRIAL IN THE TENTH JUDICIAL COURT IN POLK COUNTY BEGAN JANUARY THIRD THE CHEMICAL CONCERN SAID THE PLAINTIFFS HAD BEEN SEEKING EIGHT MILLION DOLLARS IN DAMAGES DUPONT SAID THE JURY RULED THAT QUOTE THERE WAS NO PRODUCT DEFECT AND NO NEGLIGENCE ON THE PART OF DUPONT QUOTE AND CALLED THE VERDICT A QUOTE MAJOR TRIAL WIN IN ITS BATTLE TO VINDICATE QUOTE THE CONTROVERSIAL BENLATE PRODUCT ATTORNEYS FOR THE TWO GROWERS COULDN'T BE REACHED LATE YESTERDAY DUPONT STILL FACES HUNDREDS OF LAWSUITS FROM FARMERS PLANT NURSERY OPERATORS AND THE LIKE WHO CONTEND THAT THE FUNGICIDE HURT THEIR CROPS THE COMPANY RECALLED THE GRANULATED FORM OF BENLATE IN LATE NINETEEN NINETY ONE AND LATER PAID OUT NEARLY FIVE HUNDRED MILLION DOLLARS IN BENLATE CLAIMS BUT IT HALTED SUCH PAYOUTS IN NOVEMBER NINETEEN NINETY TWO ASSERTING THAT TESTS IT SPONSORED HAD PROVED THE PRODUCT COULDN'T HAVE CAUSED THE DAMAGE THE PLAINTIFFS ALLEGE SINCE THEN THE COMPANY HAS EITHER GONE TO COURT OVER SUCH CLAIMS OR SETTLED PRIVATELY IN THE CASES THAT HAVE GONE TO TRIAL DUPONT HAS HAD A MIXED RECORD FOR THE MOST PART IN CASES WHERE IT HAS BEEN ORDERED TO PAY DAMAGES PLAINTIFFS HAVE RECEIVED MUCH LESS THAN THEY HAD BEEN SEEKING IN ONE FEDERAL COURT CASE THE PLAINTIFFS SETTLED WHILE THE JURY WAS DELIBERATING IN THE LATTER PART OF NINETEEN NINETY THREE ONE FLORIDA COURT FOUND THE COMPANY LIABLE FOR THREE MILLION DOLLARS IN DAMAGES TO AN ORCHID GROWER AND ANOTHER JURY ORDERED DUPONT TO PAY THREE POINT TWO MILLION DOLLARS FAR LESS THAN THE TWENTY EIGHT MILLION DOLLARS PLAINTIFFS HAD BEEN SEEKING TO CERTAIN NURSERY OWNERS AN ARKANSAS JURY FOUND THE COMPANY LIABLE FOR TEN POINT SEVEN MILLION DOLLARS IN ANOTHER CASE BUT DUPONT ALSO WON A TEXAS BENCH TRIAL AND HAS SUCCEEDED IN GETTING SOME OTHER COMPLAINTS THROWN OUT IN A WIDENING BREACH WITH HAITIAN PRESIDENT JEAN BERTRAND ARISTIDE THE U. S. IS BACKING A PLAN THAT AIMS TO RESTORE DEMOCRACY ON THE ISLAND NATION BUT DOESN'T INCLUDE A FIRM DATE FOR THE OUSTED PRESIDENT'S RETURN THE PLAN WHICH IS BEING PUSHED BY A HAITIAN PARLIAMENTARY DELEGATION CALLS FOR MR. ARISTIDE'S EVENTUAL RESTORATION AFTER HE NAMES A NEW PRIME MINISTER AND A NEW BROAD BASED GOVERNMENT TAKES CERTAIN ACTIONS BUT UNLIKE A PREVIOUS AGREEMENT LAST SUMMER TO END THE CRISIS IN HAITI THE CURRENT BLUEPRINT DOESN'T INCLUDE A SPECIFIC TIMETABLE FOR THE RESTORATION OF MR. ARISTIDE WHO WAS OVERTHROWN IN A SEPTEMBER NINETEEN NINETY ONE MILITARY COUP AFTER BEING ELECTED BY A WIDE MAJORITY A SENIOR U. S. OFFICIAL INSISTED THAT THE ADMINISTRATION HAD NEVER CALLED FOR MR. ARISTIDE'S IMMEDIATE RETURN AND WASN'T BACKING AWAY FROM HIM INSTEAD IT HAS ALWAYS PREFERRED TO HAVE HAITI FIRST BUILD A FUNCTIONING GOVERNMENT HOWEVER THE PROPOSAL COULD POSSIBLY LEAD TO A SITUATION IN WHICH MR. ARISTIDE DOESN'T RETURN MICHAEL BARNES A FORMER U. S. CONGRESSMAN WHO IS MR. ARISTIDE'S CHIEF AMERICAN ADVISER SAID YESTERDAY THAT QUOTE I WOULDN'T RECOMMEND THAT THE GOVERNMENT OF HAITI ENTER INTO ANY NEW AGREEMENT THAT DOESN'T ASSURE THE RAPID RETURN OF THE PRESIDENT ON A DATE CERTAIN QUOTE MR. BARNES WHOSE COMMENTS REFLECT MR. ARISTIDE'S VIEWS COMPLAINED THAT THE U. S. HASN'T FOLLOWED THROUGH ON ITS COMMITMENT TO INCREASE INTERNATIONAL SANCTIONS AGAINST HAITI'S MILITARY RULERS BY JANUARY FIFTEENTH THE SENIOR U. S. OFFICIAL DISPLAYING PIQUE WITH MR. ARISTIDE INDICATED THAT THE HAITIAN PRESIDENT EITHER LACKS THE FLEXIBILITY OR DOESN'T UNDERSTAND THE STEPS THAT WILL BE NECESSARY TO RESOLVE THE CRISIS IN HAITI AND PREPARE FOR HIS RETURN SPEAKING OF THE PARLIAMENTARIANS' PLAN THE U. S. OFFICIAL ACCUSED MR. ARISTIDE OF BEING NOT FORTHCOMING IN DOING ANY OF THIS ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION LAWRENCE PEZZULLO THE STATE DEPARTMENT'S SPECIAL ADVISER ON HAITI HAS BEEN PRESSING MR. ARISTIDE FOR ABOUT TEN DAYS TO ACCEPT THE LATEST PLAN MR. ARISTIDE WANTS THE INTERNATIONAL COMMUNITY TO MOVE FIRST WITH MORE SANCTIONS THROUGH THE UNITED NATIONS SECURITY COUNCIL THE U. S. ALONG WITH CANADA FRANCE AND VENEZUELA HAS FORMULATED HAITIAN SANCTIONS THAT WOULD EXPAND PENALTIES ALREADY IN FORCE BY NATIONS IN THIS HEMISPHERE THE CONTEMPLATED SANCTIONS INCLUDE ASKING U. N. MEMBERS TO FREEZE THE OVERSEAS ASSETS AND RESTRICT THE TRAVEL OF MILITARY LEADERS AND THEIR SUPPORTERS AND TO IMPOSE A TRADE EMBARGO AND BAN ON COMMERCIAL AIR FLIGHTS BUT ANOTHER SENIOR U. S. OFFICIAL INDICATED THAT THERE COULD STILL BE A LONG CONSULTATION PROCESS AHEAD AT THE U. N. WE'RE NOT ON A FAST TRACK TODAY BUT WE'RE LAYING THE GROUNDWORK THE OFFICIAL SAID AND THE OFFICIAL WHO BRIEFED REPORTERS HERE YESTERDAY INDICATED HE WASN'T ENTHUSIASTIC ABOUT IMPOSING NEW SANCTIONS BECAUSE THEY COULD DESTROY HAITI COMPLETELY THE SENIOR U. S. OFFICIAL INSISTED THAT THE U. S. IS PURSUING AS DILIGENTLY AS IT MAY A PROGRAM OF RESTORING DEMOCRACY AND THE PRESIDENT OF THE COUNTRY BUT THE OFFICIAL ADDED THAT MR. ARISTIDE NEEDS TO UNDERSTAND THAT HE MUST WORK WITH A BROAD BASED GOVERNMENT AND THAT WOULD MEAN CURBING SOME OF HIS PRESIDENTIAL POWERS MR. ARISTIDE GOT INTO A SPAT WITH THE CLINTON ADMINISTRATION EARLIER THIS MONTH WHEN HE ACCUSED THE U. S. OF ERECTING A FLOATING BERLIN WALL TO STOP HAITIANS FROM FLEEING THE ISLAND'S MILITARY DICTATORSHIP STATE DEPARTMENT SPOKESMAN MICHAEL MCCURRY SAID MR. ARISTIDE'S COMMENT ON THE U. S. POLICY OF INTERDICTION AND REPATRIATION AMOUNTS IN EFFECT TO ENCOURAGING PEOPLE TO LEAVE HAITI IN A WAY THAT COULD RESULT IN DEATHS AT SEA THE ADMINISTRATION BELIEVES THE CURRENT EMBARGO IMPOSED BY THE ORGANIZATION OF AMERICAN STATES IS SQUEEZING HAITI'S MILITARY RULERS AND BEGINNING TO CAUSE DIVISIONS WITHIN THEIR RANKS UNDER THE PLAN PROPOSED BY THE HAITIAN MEMBERS OF PARLIAMENT THE LEGISLATURE WOULD APPROVE AN AMNESTY FOR THOSE INVOLVED IN THE NINETEEN NINETY ONE COUP THE MILITARY LEADER RAOUL CEDRAS WOULD RETIRE AND MICHEL FRANCOIS THE POWERFUL HEAD OF THE PORT AU PRINCE POLICE WOULD BE TRANSFERRED TO ANOTHER POST THE NEW PRIME MINISTER WOULD THEN BE CONFIRMED BY HAITI'S PARLIAMENT PROMPTING THE END OF INTERNATIONAL SANCTIONS AND LEADING TO MR. ARISTIDE'S RETURN WILLIAMS COMPANIES TULSA OKLAHOMA SAID A UNIT AGREED TO PAY PUBLIC SERVICE COMPANY OF NEW MEXICO ONE HUNDRED FIFTY FIVE MILLION DOLLARS FOR NATURAL GAS GATHERING AND PROCESSING ASSETS IN NEW MEXICO WILLIAMS SAID ITS WILLIAMS FIELD SERVICES GROUP WHICH SPECIALIZES IN GATHERING AND PROCESSING NATURAL GAS AGREED TO ACQUIRE PUBLIC SERVICE FACILITIES AND OPERATIONS IN NEW MEXICO'S SAN JUAN AND PERMIAN BASINS WILLIAMS A PIPELINE NATURAL GAS AND TELECOMMUNICATIONS COMPANY SAID THE PUBLIC SERVICE ASSETS INCLUDE TWO NATURAL GAS PROCESSING PLANTS NEAR BLOOMFIELD N. M. A PROCESSING PLANT SOUTHEAST OF BLOOMFIELD A SMALLER PROCESSING PLANT AND AN AMINE TREATMENT PLANT NEAR CARLSBAD N. M. AND APPROXIMATELY ONE THOUSAND FOUR HUNDRED MILES OF ASSOCIATED GAS GATHERING SYSTEMS A SPOKESMAN FOR PUBLIC SERVICE BASED IN ALBUQUERQUE N. M. SAID THE SALE IS QUOTE RIGHT ON LINE QUOTE WITH THE UTILITY COMPANY'S PLANS TO SHED GAS GATHERING OPERATIONS AND FOCUS ON ELECTRIC AND GAS SERVICES FEDERATED DEPARTMENT STORES INCORPORATED WILL MEET WITH CREDITORS OF R. H. MACY AND COMPANY THIS WEEK THE FIRST FORMAL STEPS BY THE DEPARTMENT STORE RETAILER TO WOO CREDITORS IN ITS PLAN TO MERGE WITH MACY FEDERATED EXECUTIVES WILL MEET WITH SECURED CREDITORS OF MACY SUCH AS FIDELITY INVESTMENTS TODAY AT THE NEW YORK OFFICES OF JONES DAY REAVIS AND POGUE THE CLEVELAND BASED LAW FIRM THAT REPRESENTS FEDERATED FEDERATED CONFIRMED IT WILL MEET WEDNESDAY WITH MACY'S UNSECURED CREDITORS FEDERATED RECENTLY PAID FOUR HUNDRED FORTY NINE POINT THREE MILLION DOLLARS TO ACQUIRE HALF OF PRUDENTIAL INSURANCE COMPANY OF AMERICA'S HOLDINGS OF CERTAIN MACY'S DEBT THE DEBT REPRESENTS A MAJOR CLAIM IN MACY'S CHAPTER ELEVEN BANKRUPTCY REORGANIZATION AND ITS PURCHASE GIVES FEDERATED A MAJOR VOICE IN FASHIONING A REORGANIZATION FEDERATED HAS SAID IT WANTS TO MERGE WITH MACY WHICH HAS SAID IT WANTS TO REMAIN INDEPENDENT FEDERATED HAS BEEN MEETING QUIETLY ON A ONE ON ONE BASIS WITH CREDITORS' REPRESENTATIVES EIGHT MAJOR GROUPS OWED SIX BILLION DOLLARS BY MACY TO EXPLAIN WHY IT WANTED TO MERGE WITH MACY BUT THIS WEEK MARKS THE FIRST OFFICIAL GROUP MEETINGS WITH CREDITORS CORPORATE AMERICA'S PROFIT STREAK CONTINUED IN THE FOURTH QUARTER BUT SOME ANALYSTS WARN THAT FUTURE EARNINGS GAINS PROBABLY WILL BE LESS SPECTACULAR AND HARDER TO COME BY IF THEY ARE RIGHT THE STOCK MARKET COULD HIT SOME POTHOLES WITH INTEREST RATES LIKELY TO MOVE HIGHER IN COMING MONTHS INVESTORS WILL LOOK INCREASINGLY TO ROBUST EARNINGS REPORTS TO POWER THE MARKET UPWARD SO FAR CORPORATE AMERICA HAS DELIVERED ACCORDING TO ZACKS INVESTMENT RESEARCH SIXTY PERCENT OF THE SEVEN HUNDRED ELEVEN COMPANIES IN THE DOW JONES INDUSTRY GROUPS HAVE REPORTED EARNINGS IN LINE WITH OR BETTER THAN ANALYSTS' ESTIMATES THOSE COMPANIES THAT SURPASSED EXPECTATIONS DID SO BY TWO POINT THREE PERCENT ON AVERAGE MOREOVER FOURTH QUARTER EARNINGS FROM CONTINUING OPERATIONS BEFORE SPECIAL CHARGES AND GAINS ROSE TWENTY FIVE POINT THREE PERCENT FROM THE YEAR EARLIER QUARTER THAT FIGURE SURPASSES THE NINETEEN POINT EIGHT PERCENT GROWTH RATE IN THE THIRD QUARTER BUT DON'T LOOK FOR REPEAT PERFORMANCES IN THE QUARTERS TO COME NO ONE EXPECTS THE ECONOMY TO GROW ANY FASTER THAN IT DID IN THE FOURTH QUARTER AND NEITHER WILL CORPORATE PROFITS MANY ANALYSTS CONCLUDE QUOTE I THINK EARNINGS WILL STILL GROW BUT AT A SLOWER RATE THAN LAST YEAR QUOTE SAYS ELAINE GARZARELLI STOCK STRATEGIST AT LEHMAN BROTHERS THAT'S ONE REASON SHE SAYS THAT SOME OTHER STOCK STRATEGISTS ARE BEARISH ON THE MARKET THEY FEEL THAT ONCE EARNINGS GROWTH PEAKS THE STOCK MARKET STARTS TO DECLINE BUT MS. GARZARELLI SAYS ONE ONLY HAS TO LOOK BACK TO NINETEEN SIXTY THREE A PERIOD WHICH SHE LIKENS TO THE CURRENT ONE AND NOTICE THAT THE STOCK MARKET KEPT RISING EVEN THOUGH PROFITS HAD ALREADY PEAKED NO DOUBT THE KEY TO SUSTAINED PROFIT GROWTH IN COMING QUARTERS WILL BE STRONGER DEMAND FOR GOODS AND SERVICES AND THE ABILITY FOR COMPANIES TO RAISE PRICES THOUGH PROFITS GREW AT A DOUBLE DIGIT RATE AS THE ECONOMY SOARED IN THE FOURTH QUARTER REVENUE GROWTH CONTINUED TO LAG SIGNIFICANTLY SAYS BENJAMIN ZACKS EXECUTIVE VICE PRESIDENT AT ZACKS INVESTMENT INDEED AS HAS BEEN THE CASE FOR THE PAST FOUR QUARTERS MOST OF THE PROFIT GAINS WERE DUE TO COST CUTTING AND LOW INTEREST RATES BETTER PRICING CERTAINLY IS GOING TO BE THE KEY TO BETTER EARNINGS SAYS MR. ZACKS HE NOTES THAT SEVERAL OF THE COMPANIES TURNING IN POSITIVE FOURTH QUARTER EARNINGS SURPRISES HAD PRICING POWER THESE INCLUDED AUTO COMPANIES BUILDING MATERIALS CONCERNS FOREST PRODUCTS FIRMS AND PAPER PRODUCTS COMPANIES WHAT'S MORE MANY OF THE COMPANIES THAT DISAPPOINTED INVESTORS WITH THEIR EARNINGS REPORTS WERE IN INDUSTRIES THAT ARE STILL SUFFERING FROM A LACK OF PRICING POWER AMONG THEM ARE PRECIOUS METALS PRODUCERS ALUMINUM COMPANIES CONTAINER AND PACKAGING FIRMS AIRLINES AND COMPUTER MAKERS BUT WHILE PRICING MEANT POWER FOR MANY CORPORATIONS MR. ZACKS DOESN'T EXPECT IT TO BECOME A BROAD BASED TREND AT SOME STAGE HE SAYS ALL OF THAT COST CUTTING REACHES A POINT OF DIMINISHING RETURNS FOR THE ECONOMY AS A WHOLE HE EXPLAINS THAT AS COMPANIES CONTINUE TO CUT COSTS AND LAY OFF WORKERS DEMAND WILL CONTINUE TO BE SUBDUED GIVING FIRMS VERY LITTLE LEEWAY TO RAISE PRICES IN NINETEEN NINETY FOUR HE PROJECTS EARNINGS WILL GROW SEVENTEEN POINT OH FOUR PERCENT A SLOWDOWN FROM LAST YEAR'S ESTIMATED TWENTY THREE POINT SEVEN FIVE PERCENT AND WHILE THAT'S QUITE RESPECTABLE CONSIDERING THE MATURITY OF THE BUSINESS CYCLE SOME ANALYSTS FEAR THAT IT WON'T BE ROBUST ENOUGH FOR THE LIKES OF STOCK INVESTORS GAIL DUDACK STOCK STRATEGIST AT S. G. WARBURG WORRIES THAT THE STRONG ECONOMY IN THE FOURTH QUARTER HAS INFLATED EARNINGS EXPECTATIONS ON WALL STREET SHE THINKS THE STOCK MARKET COULD TAKE A TUMBLE IF THE STREET'S SUGAR COATED EARNINGS FORECASTS AREN'T MET THE RESULTS OF THE FOURTH QUARTER OVERALL HAS BOLSTERED CORPORATE AMERICA AND ANALYSTS WHO ARE NOW LOOKING AT THE POSSIBILITY OF PUTTING INTO PLACE PRICE INCREASES SHE SAYS BUT MS. DUDACK IS NOT SO CONFIDENT THAT PRICING INCREASES CAN EASILY BE PASSED ALONG TO CUSTOMERS SHE SAYS MANY INDUSTRIES ARE STILL PLAGUED WITH OVERCAPACITY AND EVEN THOSE COMPANIES THAT ARE FACING BLOCKBUSTER DEMAND ARE FAVORING INCREASING THEIR MARKET SHARE OVER RAISING PRICES THE CONSENSUS IS THAT PRODUCTIVITY PLUS PRICING POWER WILL COMBINE TO CREATE SPECTACULAR EARNINGS IN NINETEEN NINETY FOUR SHE SAYS WHILE THE POTENTIAL FOR THAT EXISTS I THINK IT'S FIFTY TO FIFTY MY BIGGEST CONCERN IS THAT THE ECONOMIC NEWS HAS BUILT UP CONFIDENCE AMONG CORPORATIONS AND ANALYSTS AND THERE ARE GOING TO BE SOME DISAPPOINTMENTS HERE QUOTE WHILE MS. GARZARELLI OF LEHMAN BROTHERS REMAINS BULLISH SHE THINKS INVESTORS CAN MAXIMIZE THEIR GAINS BY UNEARTHING SECTORS OF THE MARKET THAT OFFER BETTER THAN EXPECTED EARNINGS GROWTH IN HER VIEW STOCKS THAT ARE SENSITIVE TO THE ECONOMIC CYCLE WILL OFFER THE GREATEST GAINS FOR INVESTORS FOR INSTANCE SHE IS PROJECTING AN UPTURN IN PLANT AND EQUIPMENT SPENDING THROUGH NINETEEN NINETY FIVE THAT SHOULD HELP BOOST HEAVY MACHINERY COMMODITY AND BUILDING STOCKS SHE ALSO EXPECTS CONSUMER DURABLES SUCH AS AUTOS AND APPLIANCES TO CONTINUE FARING WELL MAKING THOSE STOCKS AN ATTRACTIVE INVESTMENT ALL THESE SECTORS SHOULD GROW TWICE AS FAST AS GROSS DOMESTIC PRODUCT SO THEIR EARNINGS SHOULD GROW TWICE AS FAST AS THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX SAYS MS. GARZARELLI EDWARD YARDENI CHIEF ECONOMIST AT C. J. LAWRENCE SAYS INVESTORS ARE LOOKING AT THE BEST OF BOTH WORLDS THE THING TO BE IMPRESSED WITH IS HOW WELL PROFITS HAVE COME ALONG WITHOUT MUCH TOP LINE GROWTH HE SAYS I THINK THIS YEAR YOU ARE GOING TO SEE SOME PRICING POWER AND FOR THE FIRST TIME SOME UNIT SALES GROWTH STOCKS ENDED MIXED IN AN ABBREVIATED TRADING SESSION YIELDING TO A SEVERE WINTER SNOWSTORM THE NEW YORK STOCK EXCHANGE DECIDED TO STOP TRADING AT TWO THIRTY P. M. E. S. T. INSTEAD OF THE NORMAL FOUR P. M. CLOSE IT WAS THE FIRST TIME BIG BOARD TRADING WAS CURTAILED BECAUSE OF THE WEATHER SINCE SEPTEMBER TWENTY SEVENTH NINETEEN EIGHTY FIVE WHEN THE EXCHANGE WAS CLOSED ALL DAY BECAUSE OF HURRICANE GLORIA THE NASDAQ STOCK MARKET AND THE AMERICAN STOCK EXCHANGE ALSO CLOSED EARLY THE DOW JONES INDUSTRIAL AVERAGE EASED ZERO POINT FIVE SIX POINTS TO THREE THOUSAND EIGHT HUNDRED NINETY FOUR POINT SEVEN EIGHT STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX GAINED ONE POINT TWO FIVE TO FOUR HUNDRED SEVENTY POINT ONE EIGHT AND THE NASDAQ COMPOSITE INDEX LOST TWO POINT OH THREE TO SEVEN HUNDRED EIGHTY ONE POINT THREE NINE FOR THE WEEK THE DOW INDUSTRIALS GAINED ZERO POINT SIX PERCENT THE S. AND P. FIVE HUNDRED INCHED UP ZERO POINT ZERO EIGHT PERCENT AND THE NASDAQ COMPOSITE CLIMBED ZERO POINT FIVE PERCENT VOLUME TOTALED A MODEST TWO HUNDRED ELEVEN POINT EIGHT MILLION SHARES DOWN FROM THREE HUNDRED TWENTY FIVE POINT EIGHT MILLION SHARES ON THURSDAY DECLINING ISSUES OUTNUMBERED ADVANCERS ONE THOUSAND TWO HUNDRED FOURTEEN TO EIGHT HUNDRED ONE STOCKS WERE MIXED IN SPITE OF A LABOR DEPARTMENT REPORT SHOWING THAT INFLATION WAS WELL UNDER CONTROL THE NEWS SPARKED A RALLY IN THE BOND MARKET BUT STOCK INVESTORS WERE MORE SUBDUED PART OF THE REASON WAS A COMMERCE DEPARTMENT REPORT THAT JANUARY RETAIL SALES WERE NOT AS STRONG AS EXPECTED THE AUTO STOCKS THE RECENT STARS AMONG THE CYCLICALS FELL FOR A THIRD DAY GENERAL MOTORS DROPPED ONE AND ONE EIGHTH TO SIXTY ONE AND ONE EIGHTH FORD MOTOR ONE HALF TO SIXTY FIVE AND ONE HALF AND CHRYSLER THREE QUARTERS TO FIFTY NINE PROCTER AND GAMBLE ADDED ONE AND THREE EIGHTHS TO FIFTY EIGHT AND THREE QUARTERS DEAN WITTER REYNOLDS PUT A BUY RECOMMENDATION ON THE CONSUMER PRODUCTS MAKER'S SHARES THE BROKERAGE FIRM CITED P. AND G'S SUCCESS AT CUTTING OPERATING COSTS AND A POTENTIAL ACCELERATION IN EARNINGS TANDY CORPORATION GAINED ONE AND THREE QUARTERS TO FORTY SIX AND ONE QUARTER THIS NEWSPAPER REPORTED THAT THE FORT WORTH TEXAS CONSUMER ELECTRONICS RETAILER EXPECTS TO POST FOURTH QUARTER EARNINGS FROM OPERATIONS OF ABOUT ONE DOLLAR AND TWO CENTS A SHARE UP TWENTY ONE PERCENT FROM EIGHTY FOUR CENTS A YEAR EARLIER THAT FIGURE EXCLUDES A GAIN FROM THE COMPANY'S PROGRAM OF DIVESTING NONCORE BUSINESSES CISCO SYSTEMS JUMPED TWO AND THREE EIGHTHS TO SEVENTY FOUR AND THREE EIGHTHS THE MENLO PARK CALIFORNIA COMPUTER NETWORKING SYSTEM MANUFACTURER REPORTED BETTER THAN EXPECTED FISCAL SECOND QUARTER EARNINGS OF TWENTY NINE CENTS A SHARE UP FROM FIFTEEN CENTS A YEAR EARLIER CLASS A SHARES OF NEW YORK TIMES COMPANY ROSE ONE AND ONE QUARTER TO TWENTY SEVEN AND ONE HALF THE PUBLISHING CONCERN'S FOURTH QUARTER REPORT SHOWED A LOSS OF TWENTY THREE CENTS A SHARE COMPARED WITH A YEAR AGO LOSS OF FIVE CENTS HOWEVER THE LATEST QUARTER'S RESULTS WERE HURT BY A THIRTY MILLION DOLLAR PRETAX CHARGE INFORMIX RALLIED ONE AND ONE EIGHTH TO TWENTY ONE AFTER FURMAN SELZ INITIATED COVERAGE OF THE MENLO PARK CALIFORNIA SOFTWARE DEVELOPER WITH A QUOTE BUY QUOTE RATING COLUMBIA GAS ROSE ONE AND SEVEN EIGHTHS TO TWENTY SEVEN AND THREE EIGHTHS THE WILMINGTON DELAWARE COMPANY REPORTED FOURTH QUARTER EARNINGS OF ONE DOLLAR AND THIRTY SEVEN CENTS A SHARE COMPARED WITH ONE DOLLAR AND SEVENTY THREE CENTS A YEAR EARLIER BOTH PERIODS INCLUDED EXTRAORDINARY ITEMS GOLDMAN SACHS AND COMPANY ADDED THE STOCK TO ITS RECOMMENDED LIST FRIDAY PENN CENTRAL DROPPED ONE AND SEVEN EIGHTHS TO TWENTY SIX AND SEVEN EIGHTHS THE CINCINNATI COMPANY SAID IT IS CONSIDERING THE PURCHASE OF SOME PERSONAL INSURANCE LINES FROM A UNIT OF AMERICAN FINANCIAL CORPORATION FOR THREE HUNDRED EIGHTY MILLION DOLLARS DAVE PETTIT CONTRIBUTED TO THIS ARTICLE NATIONAL MEDIA CORPORATION SAID IT WILL LAUNCH A TELEVISED HOME SHOPPING BUSINESS IN JAPAN THROUGH AN AGREEMENT WITH THE JAPANESE TRADING COMPANY MITSUI AND COMPANY THE NATION'S LEADING INFOMERCIAL MARKETER BASED IN PHILADELPHIA SAID IT WILL PROVIDE INFOMERCIAL PROGRAMMING FOR A TRIAL THIS SPRING WHILE MITSUI WILL ARRANGE FOR BROADCASTING AND MARKETING THE PROJECT COULD BE EXPANDED TO OTHER ASIAN COUNTRIES AND AUSTRALIA NATIONAL MEDIA SAID THE ANNOUNCEMENT COMES AS VALUEVISION INTERNATIONAL INCORPORATED A MINNEAPOLIS HOME SHOPPING NETWORK HAS LAUNCHED A TEN DOLLAR AND FIFTY CENT A SHARE TENDER OFFER FOR NATIONAL MEDIA SHARES NATIONAL MEDIA HASN'T MADE A RECOMMENDATION ON THE OFFER A NATIONAL MEDIA SPOKESMAN SAID THE MITSUI ANNOUNCEMENT IS UNRELATED TO THE TENDER OFFER BUT ADDED THAT QUOTE ANYTHING YOU DO THAT MAKES YOUR BUSINESS STRONGER IS A POSITIVE THING QUOTE THE JUSTICE DEPARTMENT SAYS A FEDERAL COURT AT LEAST FOR NOW SHOULDN'T GRANT AMERICAN TELEPHONE AND TELEGRAPH COMPANY A LEGAL WAIVER THAT WOULD REMOVE AN OBSTACLE TO ITS PROPOSED ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS INCORPORATED WHILE THE ACTION PRESENTS A SETBACK TO THE TELEPHONE COMPANY'S EFFORT TO SECURE MCCAW IT DOESN'T NECESSARILY THWART IT A. T. AND T. PREDICTED THAT IT WILL BE ABLE TO PERSUADE THE COURT TO GRANT THE WAIVER DESPITE THE DEPARTMENT'S OPPPOSITION AND A DEPARTMENT SPOKESWOMAN SAID THE CLINTON ADMINISTRATION HASN'T YET CONCLUDED ITS REVIEW OF THE PROPOSED MERGER ITSELF QUOTE THIS IS NOT OUR JUDGMENT REGARDING THE MERGER OF A. T. AND T. AND MCCAW QUOTE SAID THE SPOKESWOMAN GINA TALAMONA THIS FILING DOES NOT SAY WHAT WE'RE DOING REGARDING THE MERGER WE'RE STILL CONFIDENT THE MERGER WILL GO OFF ON SCHEDULE AN A. T. AND T. SPOKESMAN SAID THE JUSTICE DEPARTMENT IS DENYING OUR REQUEST FOR AN EXPEDITED WAIVER WHICH MEANS THEY WANT MORE INFORMATION FROM US WE'LL PROVIDE WHATEVER INFORMATION THE COURT THINKS IS NECESSARY A. T. AND T. WANTS THE FEDERAL DISTRICT COURT IN WASHINGTON TO ISSUE A WAIVER FROM A CONSENT DECREE THAT PREVENTS IT FROM OWNING STOCK OR ASSETS OF BELL OPERATING COMPANIES BECAUSE MCCAW OWNS INTERESTS IN CELLULAR SYSTEMS THAT ARE CONTROLLED BY BELL COMPANIES A. T. AND T. WOULD NEED THE WAIVER BEFORE COMPLETING THE PLANNED ACQUISITION IN A MEMORANDUM FILED WITH THE COURT THE DEPARTMENT SAID A. T. AND T. PROVIDED NO FACTUAL SUPPORT FOR THE WAIVER QUOTE A. T. AND T. DOES NOT EXPLAIN WHY THE COURT SHOULD CONCLUDE THAT A. T. AND T.'S OBTAINING SIGNIFICANT OR CONTROLLING INTEREST IN THESE CELLULAR SYSTEMS WHICH ARE OBLIGED TO PROVIDE EQUAL ACCESS TO A. T. AND T.'S INTEREXCHANGE COMPETITORS WILL NOT RESULT IN THE VERY EVILS THE DECREE WAS INTENDED TO PREVENT QUOTE A. T. AND T. HAS SAID A WAIVER ISN'T NEEDED BUT THAT IT WOULDN'T BE DIFFICULT TO OBTAIN ONE IF NECESSARY THE COMPANY HAS ARGUED THAT THE CONSENT DECREE THAT BROKE UP THE COMPANY PROHIBITED IT FROM REACQUIRING BELL ASSETS A. T. AND T. OWNED AT THE TIME OF THE BREAKUP IT ASSERTS THAT THE CELLULAR FRANCHISES AREN'T IN THAT CATEGORY IF FEDERAL JUDGE HAROLD GREENE REFUSES TO GRANT A WAIVER A. T. AND T. COULD APPEAL OR RESTRUCTURE ITS DEAL WITH MCCAW SPECIFICALLY MCCAW WOULD HAVE TO SEVER ITS BUSINESS RELATIONSHIPS WITH THE BELL COMPANIES IN A NUMBER OF LUCRATIVE CELLULAR MARKETS INCLUDING LOS ANGELES AND HOUSTON WHERE MCCAW'S SUBSIDIARY L. I. N. BROADCASTING INCORPORATED OPERATES A CELLULAR PHONE COMPANY WITH BELLSOUTH CORPORATION IN THE SAN FRANCISCO BAY AREA TOO A JOINT VENTURE BETWEEN MCCAW AND PACIFIC TELESIS GROUP OFFERS CELLULAR SERVICE THIS COULD MAKE MCCAW A LESS DESIRABLE PROPERTY TO A. T. AND T. WHICH IS SEEKING TO SET UP AN UBIQUITOUS NATIONAL WIRELESS SERVICE THAT TAKES IN THE LARGEST U. S. MARKETS BORDEN INCORPORATED'S CHIEF FINANCIAL OFFICER AND ITS GENERAL COUNSEL ARE LEAVING THE BELEAGUERED FOOD AND CHEMICALS COMPANY AS PART OF A MANAGEMENT SHAKE UP BORDEN YESTERDAY SAID LAWRENCE O. DOZA ITS FIFTY FIVE YEAR OLD SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR NEARLY NINE YEARS WILL TAKE EARLY RETIREMENT EFFECTIVE MARCH FIRST EARLIER THIS MONTH WALTER W. KOCHER BORDEN'S VICE PRESIDENT AND GENERAL COUNSEL RESIGNED AFTER TWENTY FIVE YEARS WITH THE COMPANY IN ADDITION PEOPLE CLOSE TO BORDEN SAY GEORGE J. WAYDO ONE TIME EXECUTIVE VICE PRESIDENT IN CHARGE OF THE STRUGGLING SNACK FOOD UNIT IS EXPECTED TO LEAVE BORDEN AFTER COMPLETING AN INTERNATIONAL ASSIGNMENT MOST RECENTLY MR. WAYDO FIFTY SERVED AS A VICE PRESIDENT IN CHARGE OF SPECIAL PROJECTS MESSRS DOZA KOCHER AND WAYDO COULDN'T BE REACHED FOR COMMENT BORDEN ALSO DECLINED TO COMMENT ON THE CHANGES BUT PEOPLE FAMILIAR WITH THE SITUATION SAY THE DEPARTURES OF MESSRS DOZA AND KOCHER AS WELL AS THE EXPECTED RESIGNATION OF MR. WAYDO ARE PART OF A MANAGEMENT OVERHAUL BY ERVIN R. SHAMES BORDEN'S RECENTLY APPOINTED CHIEF EXECUTIVE OFFICER IN THE PAST BORDEN'S MANAGEMENT HASN'T BEEN HIGHLY REGARDED PARTICULARLY IN THE FOOD INDUSTRY QUOTE OBVIOUSLY THERE'S A CHANGING OF THE GUARD GOING ON QUOTE SAYS JOHN MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES INCORPORATED TO SOME EXTENT DOZA REPRESENTS A SCOREKEEPER OF THE PAST REGIME IN A STATEMENT MR. SHAMES PRAISED MR. DOZA FOR CREATING INNOVATIVE LOW COST CORPORATE FINANCING VEHICLES BUT OTHERS HAVE MORE MIXED REACTIONS TO THE DECISIONS MADE DURING HIS TENURE GOLDMAN SACHS AND COMPANY'S NOMI GHEZ SAYS THAT IN NINETEEN NINETY ONE BORDEN CREATED AN UNUSUAL PARTNERSHIP THAT BASICALLY ALLOWED IT TO REDUCE SOME OF ITS DEBT UNDER THE PARTNERSHIP BORDEN PUT IN AS ASSETS ITS BEST KNOWN TRADEMARKS INCLUDING CRACKER JACK AND CREMORA CREAMER IN EXCHANGE AN OUTSIDE INVESTOR CONTRIBUTED FIVE HUNDRED MILLION DOLLARS IT WAS ALL GIMMICKS SAID MS. GHEZ WHO ADDED THAT THE PARTNERSHIP ENABLED BORDEN TO BOOK A GAIN AND KEEP THE FIVE HUNDRED MILLION DOLLARS OFF ITS DEBT TOTAL IT WAS A FINANCING VEHICLE THAT ALLOWED THEM TO UNDERESTIMATE DEBT LEVELS DISGUISED IN THE FORM OF SOMETHING ELSE PEOPLE FAMILIAR WITH BORDEN ADD THAT MR. DOZA WAS PERHAPS TOO CLOSELY ASSOCIATED WITH THE COMPANY'S PAST PARTICULARLY ITS LAST TWO RESTRUCTURING EFFORTS WHICH DID LITTLE TO BOLSTER RESULTS BORDEN DECLINED TO COMMENT ON MS. GHEZ'S STATEMENTS BORDEN SAID IT IS SEEKING AN OUTSIDE REPLACEMENT FOR MR. DOZA GEORGE P. MORRIS VICE PRESIDENT AND CHIEF STRATEGIC OFFICER HAS BEEN SELECTED TO ACT AS CHIEF FINANCIAL OFFICER IN THE INTERIM THE DEPARTURE OF MR. KOCHER FIFTY NINE IS SAID TO BE PRIMARILY BECAUSE OF COST CONSIDERATIONS MR. KOCHER'S FUNCTIONS OVERLAPPED WITH THOSE OF CHIEF ADMINISTRATIVE OFFICER ALLAN L. MILLER AND THE DECISION IS SAID TO HAVE COME DOWN TO SELECTING WHICH ONE SHOULD DEPART BUT THE EXPECTED DEPARTURE OF MR. WAYDO WHO IS SAID TO HAVE ALREADY NEGOTIATED A SEVERANCE PACKAGE WITH BORDEN CONCLUDES A MORE CONTROVERSIAL CAREER FROM NINETEEN EIGHTY FIVE TO MARCH NINETEEN NINETY THREE MR. WAYDO SERVED AS EXECUTIVE VICE PRESIDENT OF BORDEN WITH RESPONSIBILITY FOR ITS SNACKS AND INTERNATIONAL CONSUMER PRODUCTS UNIT DURING MR. WAYDO'S TENURE BORDEN MADE A NUMBER OF ACQUISITIONS THAT LATER TURNED SOUR MOST NOTABLY ITS NINETEEN EIGHTY SEVEN PURCHASE OF LAURA SCUDDER POTATO CHIPS FOR NEARLY ONE HUNDRED MILLION DOLLARS MAJOR UNION PROBLEMS PROMPTED BORDEN TO CLOSE ALL OF LAURA SCUDDER'S CALIFORNIA PLANTS A YEAR AFTER THE PURCHASE BORDEN BEGAN USING A PLANT IN SALT LAKE CITY ONLY TO INCUR HIGH COSTS AND QUALITY PROBLEMS LAST MAY BORDEN SOLD LAURA SCUDDER FOR LESS THAN TWENTY MILLION DOLLARS NOW IT IS TRYING TO SELL ITS ENTIRE SNACK FOOD BUSINESS BORDEN REPORTED A FOURTH QUARTER LOSS OF SIX HUNDRED THIRTY FIVE POINT NINE MILLION DOLLARS OR FOUR DOLLARS AND FIFTY CENTS A SHARE INCLUDING A SIX HUNDRED THIRTY TWO MILLION DOLLAR RESTRUCTURING CHARGE IN THE YEAR EARLIER QUARTER IT HAD A PROFIT OF TWENTY EIGHT POINT FOUR MILLION DOLLARS OR TWENTY CENTS A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BORDEN STOCK ROSE TWELVE POINT FIVE CENTS TO FIFTEEN DOLLARS A SHARE YESTERDAY BENIN WAS A KINGDOM IN WEST AFRICA THAT FLOURISHED AND PRODUCED EXTRAORDINARY ART FROM THE FOURTEENTH TO THE NINETEENTH CENTURIES THIS EXHIBITION OF MORE THAN ONE HUNDRED OBJECTS ON LOAN FROM VIENNA'S ETHNOGRAPHIC MUSEUM INCLUDES THE FAMOUS BRONZE SCULPTURES CEREMONIAL OBJECTS AND JEWELRY AND IVORY CARVINGS AMONG THEM FOUR ELABORATELY CARVED SEVEN FOOT TUSKS AFTER LEAVING HERE IT TRAVELS TO CLEVELAND BALTIMORE AND SEATTLE MUSEUM OF FINE ARTS HOUSTON ONE THOUSAND ONE BISSONNET THROUGH APRIL THIRD THIS RETROSPECTIVE FEATURES SOME FORTY PAINTINGS DRAWINGS AND PRINTS FROM INTERNATIONAL PUBLIC AND PRIVATE COLLECTIONS FOCUSING ON THE ARTIST'S FASCINATION WITH AND TRANSFORMATION OF THE HUMAN FACE PARTICULARLY WEEPING WOMEN LATER VENUES ARE THE METROPOLITAN MUSEUM OF ART IN NEW YORK AND THE ART INSTITUTE OF CHICAGO LOS ANGELES COUNTY MUSEUM OF ART FIVE THOUSAND NINE HUNDRED FIVE WILSHIRE BOULEVARD THROUGH MAY FIRST TWO HUNDRED THIRTEEN EIGHT HUNDRED FIFTY SEVEN TO SIX THOUSAND PAINTINGS SCULPTURES PHOTOGRAPHS AND MIXED MEDIA INSTALLATIONS BY TWENTY FOREIGN BORN ASIAN AMERICAN ARTISTS FOCUSING ON THE IDENTITY CRISIS FACED BY ASIANS LIVING IN THE WEST ONLY ONE ARTIST MASAMI TERAOKA WORKS IN A TRADITIONAL ASIAN ART MEDIUM WOODBLOCK PRINTING WHILE THE OTHERS USE CONTEMPORARY WESTERN MEDIA MORE THAN ONE HUNDRED LANDSCAPES MARINE VIEWS CITYSCAPES PORTRAITS AND GENRE SCENES PAINTED BY SEVENTEEN ARTISTS BETWEEN ONE THOUSAND SEVEN HUNDRED EIGHTY AND ONE THOUSAND EIGHT HUNDRED FIFTY CHRISTOFFER WILHELM ECKERSBERG AND HIS PUPIL CHRISTEN KOBKE ARE THE BEST KNOWN NAMES FROM THIS LITTLE KNOWN BUT HIGH MOMENT IN EUROPEAN ART METROPOLITAN MUSEUM OF ART FIFTH AVENUE AT EIGHTY SECOND STREET THROUGH APRIL TWENTY FOURTH TWO HUNDRED TWELVE EIGHT HUNDRED SEVENTY NINE TO FIVE THOUSAND FIVE HUNDRED HAROLYN BLACKWELL TAKES OVER THE ROLE OF MARIA FROM KATHLEEN BATTLE IN THE REVIVAL OF QUOTE LA FILLE DU REGIMENT QUOTE MS. BATTLE WAS DISMISSED BY THE MET FOR UNPROFESSIONAL ACTIONS DURING REHEARSALS FRANK LOPARDO SINGS TONIO WITH ROSALIND ELIAS AS THE MARQUISE OF BERKENFIELD EDOARDO MULLER CONDUCTS BRUCE DONNELL DIRECTS METROPOLITAN OPERA BROADWAY AT SIXTY SIXTH STREET FEBRUARY NINETEENTH TWENTY TWO TWENTY SIX MARCH FIRST SIX TEN TWO HUNDRED TWELVE THREE HUNDRED SIXTY TWO TO SIX THOUSAND TWO PRODUCTIONS CLOSE THE SEASON HERE ONE IS VERDI'S UN BALLO IN MASCHERA IN A PRODUCTION BY ZACK BROWN TENOR RICHARD MARGISON SINGS THE KING FATALLY ATTRACTED TO ANOTHER MAN'S WIFE WITH SOPRANO LISA GASTEEN AS THE LOVE INTEREST AMELIA THE OTHER IS MING CHO LEE'S PRODUCTION OF PUCCINI'S MADAMA BUTTERFLY WITH CHINESE SOPRANO YAN YAN WANG AS THE GLORIOUS GEISHA AND VLADIMIR GRISHKO AS HER LIEUTENANT PINKERTON THIS LARGE AND COMPREHENSIVE EXHIBIT ABOUT THE PREDATORS OF THE DEEP FEATURES INTERACTIVE DISPLAYS FOSSIL MODELS AND LIVE SPECIMENS AIMED TO DISPEL MISCONCEPTIONS ABOUT ONE OF NATURE'S LEAST ENDEARING BUT MOST ENDURING CREATURES AMERICAN MUSEUM OF NATURAL HISTORY CENTRAL PARK WEST AT SEVENTY NINTH STREET THROUGH MAY FIRST TWO HUNDRED TWELVE SEVEN HUNDRED SIXTY NINE TO FIVE THOUSAND EIGHT HUNDRED AUTHENTIC DUTCH GARDENS WILL BE THE FOCUS OF THIS EVENT BILLED AS THE FIRST INTERNATIONAL FLOWER AND GARDEN SHOW IN THE U. S. ABOUT FIFTY BONSAI TREES ARE BEING FLOWN IN FROM CHINA AS A SPECIAL EXHIBIT THE AGING UNIROYAL GOODRICH TIRE COMPANY PLANT HERE HAS BEEN RUN BY UNION CONTRACT FOR MORE THAN THIRTY YEARS RULES HAVE DICTATED WHO MAY PICK UP WHICH WRENCH EMPLOYEES WHO COMPLETED WORK QUOTAS IN LESS THAN EIGHT HOURS HAVE BEEN ALLOWED TO CHAT OR READ THROUGH THE END OF SHIFTS BUT NOT FOR MUCH LONGER GROUPE MICHELIN BOUGHT UNIROYAL GOODRICH IN NINETEEN NINETY AND NOW THE BIG QUIRKY FRENCH COMPANY IS DEMANDING CHANGE FIERCE UNION RESISTANCE CRUMBLED UNDER MICHELIN THREATS TO CLOSE THE PLANT ON SATURDAY BY A VOTE OF ONE THOUSAND SEVEN TO FOUR HUNDRED ELEVEN FORT WAYNE EMPLOYEES CHOSE TO ACCEPT MICHELIN'S DEMANDS DRASTICALLY ALTERING THE WAY PEOPLE MAKE TIRES HERE IT WAS THE LAST IN A SERIES OF VICTORIES FOR MICHELIN EMPLOYEES AT UNIROYAL GOODRICH'S OTHER PLANTS IN CANADA OKLAHOMA AND ALABAMA ALREADY HAD BOWED QUOTE WE ARE CALLING INTO QUESTION EVERYTHING THE UNION HAS BUILT BRICK BY BRICK OVER THE PAST THIRTY YEARS SENIORITY THE WRITTEN CONTRACT THE GRIEVANCE PROCEDURE QUOTE SAYS STEVEN NAIL A MICHELIN LABOR LAWYER MICHELIN WHICH BECAME THE WORLD'S BIGGEST TIRE MAKER WHEN IT ACQUIRED UNIROYAL GOODRICH PLANNED TO TAKE YEARS TRANSFORMING THE TIRED U. S. COMPANY IN NINETEEN NINETY TWO MICHELIN POSTED WORLD WIDE REVENUE OF SIXTY SIX POINT EIGHT BILLION FRENCH FRANCS OR ELEVEN POINT TWO THREE BILLION DOLLARS DOWN ONE POINT TWO PERCENT FROM THE PREVIOUS YEAR BUT WITH STORMS LASHING THE INDUSTRY AROUND THE WORLD MICHELIN DECIDED A YEAR AGO THAT IT HAD TO SPEED UP THE CHANGES FEELINGS HAVE RUN HIGH IN FORT WAYNE PEOPLE ON OPPOSITE SIDES OF THE ISSUE BOTH UNION STALWARTS AND UNION DISSIDENTS WHO WANTED TO APPROVE MICHELIN'S DEMANDS ACCUSE ONE ANOTHER OF MAKING DEATH THREATS DISSIDENT PHILLIP GEUSZ SAYS FRIENDS WARNED HIM A FEW WEEKS AGO THAT A MAN WITH A DEER RIFLE WAS STALKING HIM ONE BIG GUY CAME UP AT WORK AND SAID HE'D PRAY FOR ME IN CHURCH MR. GEUSZ RECALLS THE CLASH GROWS PARTLY FROM THE SINGLEMINDEDNESS OF A COMPANY THAT INVENTED THE RADIAL TIRE AND HAS BEEN RUN BY THE SAME FAMILY FOR MORE THAN ONE HUNDRED YEARS ITS CHAIRMAN IS FRANCOIS MICHELIN WHO IS IN HIS MID SIXTIES HIS SON EDOUARD IN HIS EARLY THIRTIES IS BEING TRAINED TO SUCCEED HIM THE COMPANY'S EXECUTIVES FRAME THE ELDER MR. MICHELIN'S SAYINGS AND HANG THEM ON THEIR WALLS THEY BELIEVE TRUE MICHELIN PEOPLE SHARE PROFOUND VALUES INVOLVING DUTIES TO ONE ANOTHER AND TO THE CUSTOMER THAT OUTSIDERS DON'T UNDERSTAND UNIROYAL GOODRICH SUFFERED BECAUSE IT DIDN'T HAVE SUCH VALUES THEY BELIEVE THEY ARE DETERMINED TO LEAD IT ON A CONVERSION THEY WANT TO RUN THIS PLACE THE WAY THEY RUN THEIR NONUNION MICHELIN BRAND PLANTS IN SOUTH CAROLINA EXCLAIMS RAY WISEMAN WHO HEADS THE FORT WAYNE PLANT'S UNION LOCAL SEVEN HUNDRED FIFTEEN OF THE UNITED RUBBER CORK LINOLEUM AND PLASTIC WORKERS OF AMERICA THAT SAYS MICHELIN IS PRECISELY RIGHT THE INDUSTRY IS IN CRISIS FUELED BY ITS OWN TECHNOLOGICAL ADVANCES A GOOD TIRE USED TO WEAR OUT AFTER THIRTY THOUSAND MILES MICHELIN TODAY GUARANTEES ITS BEST FOR EIGHTY THOUSAND WITH SALES GROWTH WEAK ACROSS THE INDUSTRY SOME ANALYSTS FEAR FACTORY CLOSURES COULD BECOME A PLAGUE TIRE MAKERS IN THE U. S. WERE SLOW TO ADAPT AND BRANDS INCLUDING FIRESTONE UNIROYAL AND GOODRICH WERE ACQUIRED BY FOREIGN COMPANIES MEANWHILE MICHELIN TRYING TO AVOID LAYOFFS SANK INTO WORLD WIDE LOSSES AND RESTRUCTURED REPEATEDLY WE FELT WE HAD TO MOVE FASTER TO TRANSFORM UNIROYAL GOODRICH SAYS CARLOS GHOSN HEAD OF MICHELIN'S U. S. OPERATIONS ALL THE FOREIGN COMPANIES THAT MADE BIG U. S. ACQUISITIONS ARE PUSHING NOW FOR NEW WORK RULES BRIDGESTONE SLASH FIRESTONE INCORPORATED FORMED AFTER JAPAN'S BRIDGESTONE CORPORATION BOUGHT FIRESTONE TIRE AND RUBBER COMPANY IN NINETEEN EIGHTY EIGHT PLANS TO DEMAND CONCESSIONS IN TALKS WITH ITS UNIONS THIS SPRING AILING GENERAL TIRE INCORPORATED OWNED BY GERMANY'S CONTINENTAL A. G. RECENTLY FORCED WAGE AND WORK RULE CONCESSIONS AT A LOW PRODUCTIVITY PLANT IN KENTUCKY MICHELIN'S FIGHT AT UNIROYAL GOODRICH HAS BEEN PARTICULARLY HARSH A STRUGGLE OVER WHO MANAGES THE COMPANY SAYS MICHELIN'S MR. NAIL MOST GALLING TO EMPLOYEES MICHELIN INSISTS THAT ALL TIRE BUILDERS REGARDLESS OF SENIORITY ROTATE SHIFTS SOMETIMES WORKING DAYS SOMETIMES NIGHTS SOMETIMES WEEKENDS MICHELIN BELIEVES THAT MINGLING JUNIOR AND SENIOR EMPLOYEES ON ALL SHIFTS LEADS TO MORE CONSISTENT QUALITY AND BETTER SAFETY UNION MEMBERS SAY THE CONSTANTLY CHANGING WORK HOURS CAUSE SLEEP PROBLEMS ALIENATION FROM FAMILIES AND EVEN ALCOHOL AND DRUG ABUSE MICHELIN WANTS TO INVEST HEAVILY IN NEW PRODUCTION SYSTEMS WHICH IT SAYS REQUIRES FLEXIBLE COOPERATIVE EMPLOYEES QUOTE NO COMPANY IS GOING TO PUT IN EXPENSIVE NEW EQUIPMENT IF IT HAS AN OVERALL WORK FORCE WHOSE MIDDLE NAME IS IT'S NOT MY JOB QUOTE SAYS FORT WAYNE PLANT MANAGER CHARLES BIANCO FOR MICHELIN STALWARTS IT ALSO IS A MORAL QUESTION FACTORIES WORK BETTER THEY BELIEVE IF EMPLOYEES SHARE HARDSHIP BY ROTATING SHIFTS YOU NEVER GET TO SEE YOUR KIDS WHEN YOU'RE ON THE SECOND SHIFT SAYS WILMA WADDELL WHO BUILDS TIRES AND ROTATES SHIFTS AT A NONUNION MICHELIN BRAND PLANT IN SOUTH CAROLINA BUT WHEN MY SON WAS KILLED IN AN ACCIDENT FOURTEEN YEARS AGO MICHELIN LET ME STAY OUT AS LONG AS I NEEDED MICHELIN TAKES CARE OF ITS OWN UNIROYAL GOODRICH'S UNION CALLS THAT PATERNALISM ANTI FRENCH SENTIMENT ABOUNDS THE RUBBER WORKERS' UNION HAS LAUNCHED AN A. F. L. C. I. O. BACKED CAMPAIGN TO BOYCOTT ALL MICHELIN BRAND ALTHOUGH NOT UNIROYAL OR GOODRICH PRODUCTS SAYING MICHELIN IS INFLEXIBLE AND HAS A SUPERIORITY COMPLEX LYNN LOUDEN A FORTY TWO YEAR OLD FORT WAYNE TIRE BUILDER SAYS HE THINKS THAT MICHELIN NEXT WILL START DEMANDING CUTS IN WAGES AND HEALTH BENEFITS I REALLY FEEL THEY'RE GOING TO KEEP COMING AT US AGAIN AND AGAIN AND THEY'LL TRY TO BEAT US DOWN TO A TEN DOLLAR OR ELEVEN DOLLAR AN HOUR JOB FROM A CURRENT HOURLY WAGE OF NEARLY EIGHTEEN DOLLARS HE SAYS MICHELIN OFFICIALS INSIST THEY HAVE NO DEVIOUS ANTIEMPLOYEE PLANS BUT THEY ACKNOWLEDGE THAT THEIR BATTLE TO CHANGE UNIROYAL GOODRICH HAS ONLY BEGUN AND WHILE THE UNION HAS BEEN BADLY SPLIT UNION LEADERS INSIST THEY WON'T LIE DOWN AND GIVE MICHELIN A FREE HAND MR. WISEMAN THE FORT WAYNE LOCAL'S PRESIDENT WIELDS A CHARISMA HONED OVER TWENTY YEARS IN POWER FOR MONTHS HE REFUSED EVEN TO LET HIS MEMBERS VOTE ON PROPOSED WORK RULE CHANGES SATURDAY'S VOTE WAS FORCED BY NATIONAL UNION LEADERSHIP OVERRULING MR. WISEMAN WHO WAS DEMANDING CONTINUED NEGOTIATIONS TO THE END ASKED WHETHER MICHELIN IS BEGINNING TO THINK THE ACQUISITION MAY HAVE BEEN AN EXPENSIVE ERROR MR. GHOSN MICHELIN'S CHIEF OF U. S. OPERATIONS SAYS THE JURY IS STILL OUT YOU CAN'T JUDGE THESE THINGS IN THREE OR FOUR YEARS' TIME HE SAYS QUOTE IT TAKES LONGER THAN THAT YOU HAVE TO HAVE PATIENCE QUOTE NUMBER OF PRIVATE VEHICLES ALLOWED IN THE COMMERCIAL DISTRICTS OF LILLEHAMMER ZERO NUMBER OF MILES CONSIDERED BY NORWEGIAN OFFICIALS TO BE WALKING DISTANCE BETWEEN OLYMPIC VENUES THIRTY FIVE NUMBER OF TICKET AGENTS IN NORWAY ONE CARTAN TOURS COMPAQ COMPUTER CORPORATION SAID IT IS DEVELOPING A PROGRAM TO MARKET ITS PERSONAL COMPUTERS TO EDUCATIONAL INSTITUTIONS INCLUDING ELEMENTARY SCHOOLS JUNIOR HIGHS HIGH SCHOOLS AND UNIVERSITIES THE MOVE IS ANOTHER IN COMPAQ'S CONTINUING EFFORTS TO EXPAND ITS SALES INTO NEW MARKETS THE HOUSTON COMPUTER MAKER QUOTE HAS NEVER FOCUSED ON EDUCATION OR DEVELOPED AN ORGANIZATION TO HANDLE IT QUOTE SAID A SPOKESMAN FOR COMPAQ THE TIME IS RIGHT FOR THE COMPAQ EXPANSION HE SAID BECAUSE THERE IS AN INCREASE IN THE LEVEL OF SOPHISTICATION OF COMPUTER USE AND A GROWING NEED FOR NETWORKING CAPABILITIES IN SCHOOLS COMPAQ WILL ESTABLISH COMPUTER DISTRIBUTION CHANNELS SOFTWARE PARTNERSHIPS AND MARKETING PROGRAMS TO SELL ITS PORTABLE DESKTOP AND SERVER OR NETWORKING PERSONAL COMPUTERS THE COMPANY SAID IT ALSO SET UP A NEW LEASING PROGRAM DESIGNED FOR SCHOOLS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COMPAQ SHARES CLOSED AT NINETY ONE POINT SIX TWO FIVE DOLLARS UP EIGHTY SEVEN POINT FIVE CENTS A BORDEN INCORPORATED SUBSIDIARY SAID IT PLANS TO BUILD A FOREST PRODUCTS RESINS PLANT IN HOPE ARKANSAS THE ADHESIVES AND RESINS NORTH AMERICA UNIT OF BORDEN'S PACKAGING AND INDUSTRIAL PRODUCTS DIVISION SAID THE NEW FACILITY WILL SERVE THE GROWING FOREST PRODUCTS BUSINESS IN THE REGION BORDEN IS A LEADING SUPPLIER OF RESINS USED TO MAKE PLYWOOD AND PARTICLEBOARD NEXT TIME YOU SEE A MUTUAL FUND WITH LOUSY PERFORMANCE DON'T BLAME THE PERSON WHO MANAGES IT CHECK OUT THE FUND'S ANNUAL EXPENSES INSTEAD STEADMAN AMERICAN INDUSTRY FUND FOR INSTANCE RANKED AS THE WORST PERFORMING STOCK FUND FOR THE FIVE YEARS ENDED DECEMBER NINETEEN NINETY THREE LOSING TWENTY FIVE PERCENT OF SHAREHOLDERS' MONEY IN A PERIOD WHEN THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX SOARED NINETY SEVEN POINT ONE PERCENT BUT THE FUND'S STOCK PICKING WAS ONLY PARTLY RESPONSIBLE FOR THE ROTTEN RESULTS IF YOU LOOK AT THE PERFORMANCE OF STEADMAN AMERICAN INDUSTRY BEFORE THE DEDUCTION OF ANNUAL MUTUAL FUND EXPENSES THE FUND ACTUALLY GAINED FORTY FIVE POINT ONE PERCENT ACCORDING TO MORNINGSTAR INCORPORATED A CHICAGO FUND RESEARCH FIRM INSTEAD THE BIGGEST REASON FOR STEADMAN'S POOR PERFORMANCE HAS BEEN THE FUND'S OUTRAGEOUSLY HIGH ANNUAL EXPENSES THOSE EXPENSES HAVE CLAIMED MORE THAN TWELVE PERCENT OF FUND ASSETS IN EACH OF THE PAST FOUR YEARS SAYS FUND RESEARCHER LIPPER ANALYTICAL SERVICES INVESTORS ARE OFTEN ONLY DIMLY AWARE OF THE IMPACT OF FUND EXPENSES THESE EXPENSES ARE GRADUALLY DEDUCTED FROM A FUND'S SHARE PRICE THROUGHOUT THE YEAR AS A RESULT MUTUAL FUND PERFORMANCE NUMBERS INCLUDING THE ONES REPORTED IN THE BACK OF THIS NEWSPAPER AUTOMATICALLY REFLECT THE IMPACT OF ANNUAL FUND EXPENSES THE PERFORMANCE NUMBERS DON'T REFLECT LOADS OR SALES CHARGES HOWEVER ANNUAL FUND EXPENSES ARE DISCLOSED IN A FUND DOCUMENT KNOWN AS THE PROSPECTUS EXPRESSED AS A PERCENT OF FUND ASSETS ON AVERAGE DIVERSIFIED U. S. STOCK FUNDS LEVY EXPENSES OF ONE POINT TWO THREE PERCENT OR ONE DOLLAR AND TWENTY THREE CENTS FOR EVERY ONE HUNDRED DOLLARS UNDER MANAGEMENT THAT MEANS THAT THE TYPICAL STOCK FUND HAS TO RETURN AT LEAST ONE POINT TWO THREE PERCENT EACH YEAR JUST FOR SHAREHOLDERS TO BREAK EVEN RETURN MEANS THE CHANGE IN THE FUND'S SHARE PRICE PLUS DIVIDENDS STEADMAN FUND GROUP WHICH MANAGES THE AMERICAN INDUSTRY FUND BLAMES ITS HIGH ANNUAL EXPENSES ON LEGAL BILLS INCURRED IN A LENGTHY BATTLE WITH THE SECURITIES AND EXCHANGE COMMISSION OVER ALLEGATIONS THAT THE WASHINGTON D. C. FUND GROUP MISPRICED ITS MUTUAL FUNDS STEADMAN WON THE CASE ON APPEAL IN NINETEEN NINETY TWO IT SAYS EXPENSES HAVE STARTED TO COME DOWN BUT MAX KATCHER STEADMAN'S TREASURER CONCEDES THAT EVEN WITHOUT THE HIGH EXPENSES ITS FUND PERFORMANCE HAS LEFT SOMETHING TO BE DESIRED QUOTE WE WON'T QUARREL WITH THAT QUOTE MR. KATCHER SAYS THOSE ARE THE FACTS HIGH EXPENSES USED TO BE A BIG PROBLEM AT AMERICAN HERITAGE FUND WHICH ONCE RANKED AS ONE OF THE FUND INDUSTRY'S MOST NOTORIOUS LOSERS BUT MARKET STRATEGIST HEIKO THIEME TOOK OVER THE FUND IN NINETEEN NINETY AND HAS SINCE TURNED IN STRONG GAINS DESPITE A ROUGH FIRST YEAR AND RECENT WEAK RESULTS THAT HAS BOLSTERED THE FUND'S FIVE YEAR RECORD SO THAT IT NOW RANKS AS THE ONE HUNDRED EIGHTEENTH BEST PERFORMING DIVERSIFIED U. S. STOCK FUND OVER THE PAST FIVE YEARS WITH A TOTAL RETURN OF ONE HUNDRED TWENTY TWO POINT FOUR PERCENT BUT THE FUND'S PERFORMANCE WOULD HAVE BEEN EVEN BETTER IF IT WASN'T FOR THE FUND'S HISTORICALLY HIGH ANNUAL EXPENSES WHILE THE FUND'S ANNUAL EXPENSES CURRENTLY ARE RUNNING AT LESS THAN TWO PERCENT THEY AMOUNTED TO MORE THAN THIRTEEN PERCENT OF ASSETS AT THE START OF THE FIVE YEAR PERIOD IF THOSE EXPENSES ARE BACKED OUT OF AMERICAN HERITAGE'S RESULTS MORNINGSTAR CALCULATES THAT THE FUND WOULD HAVE RETURNED TWO HUNDRED TWELVE POINT SEVEN PERCENT DURING THE PAST FIVE YEARS MAKING IT THE INDUSTRY'S NINETEENTH BEST PERFORMER IF A FUND HAS AN EXPENSE RATIO ABOVE TWO POINT FIVE PERCENT I WOULD VIEW THAT AS A WARNING SIGNAL SAYS MR. THIEME BUT JUST FOCUSING ON EXPENSES IS A MISTAKE IT'S THE RETURN OF THE FUND THAT SHOULD BE DECISIVE WHEN SELECTING A MUTUAL FUND WHILE SOME FUNDS ARE IMPAIRED BY THEIR HIGH EXPENSES OTHERS COUNT THRIFTINESS AS THEIR CHIEF VIRTUE VANGUARD EXTENDED MARKET PORTFOLIO FOR INSTANCE IS AN INDEX FUND THAT SIMPLY BUYS AND HOLDS THE STOCKS IN THE WILSHIRE FOUR THOUSAND FIVE HUNDRED AN INDEX OF SMALLER COMPANY STOCKS MORNINGSTAR FIGURES THAT THE VANGUARD FUND RANKS AS THE TWO HUNDRED SIXTY SECOND BEST FUND OVER THE PAST FIVE YEARS OUT OF A TOTAL OF SIX HUNDRED THREE DIVERSIFIED U. S. STOCK FUNDS THAT WERE AROUND FOR THE ENTIRE PERIOD BUT THE FUND'S BETTER THAN AVERAGE RESULT HAS COME ABOUT BECAUSE ITS EXPENSES CURRENTLY ZERO POINT ONE NINE PERCENT ARE SO MUCH LOWER THAN THOSE OF ITS COMPETITORS IF YOU IGNORE EXPENSES THE FUND'S RANKING DROPS TO A BELOW AVERAGE THREE HUNDRED FIFTY SECOND FOR MANY MUTUAL FUNDS EXPENSES HAVE MEANT THE DIFFERENCE BETWEEN BEATING AND LAGGING BEHIND THE MARKET OVER THE PAST FIVE YEARS BEFORE EXPENSES FUNDS SOARED AN AVERAGE ONE HUNDRED EIGHT POINT ONE PERCENT SINCE YEAR END NINETEEN EIGHTY EIGHT COMPARED WITH NINETY SEVEN POINT ONE PERCENT FOR THE S. AND P. FIVE HUNDRED BUT ONCE EXPENSES ARE SUBTRACTED THE FUNDS RETURNED A MARKET LAGGING NINETY FIVE POINT THREE PERCENT IT SHOWS HOW TOUGH IT IS TO BEAT THE MARKET SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER PUBLISHED BY MORNINGSTAR QUOTE EXPENSES HAVE CLEARLY MADE A BIG DIFFERENCE QUOTE EXPENSES CAN ALSO TAKE A BIG CHUNK OUT OF SHORT TERM PERFORMANCE MORNINGSTAR FIGURES THAT THE AVERAGE DIVERSIFIED U. S. STOCK FUND RETURNED TWELVE POINT SIX PERCENT LAST YEAR COMPARED WITH TEN POINT ONE PERCENT FOR THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX BUT IF YOU BACK OUT EXPENSES FUND RETURNS JUMP TO ALMOST FOURTEEN PERCENT ELIMINATING EXPENSES DOESN'T DO MUCH FOR VANGUARD GROUP THE COUNTRY'S SECOND LARGEST FUND COMPLEX WHICH PRIDES ITSELF ON ITS ROCK BOTTOM EXPENSES REMOVING EXPENSES BOLSTERS VANGUARD'S NINETEEN NINETY THREE STOCKFUND PERFORMANCE ONLY SLIGHTLY TO ALMOST THIRTEEN PERCENT FROM TWELVE POINT SIX PERCENT BUT THE EFFECT ON THE STEADMAN FUNDS IS ENORMOUS THERE ARE FOUR STEADMAN FUNDS THREE OF WHICH ARE CLASSIFIED AS DIVERSIFIED U. S. STOCK FUNDS BY MORNINGSTAR THESE THREE FUNDS RETURNED AN AVERAGE OF SEVEN POINT SIX PERCENT LAST YEAR BUT IF YOU BACK OUT EXPENSES STEADMAN'S AVERAGE PERFORMANCE SOARS TO SEVENTEEN POINT FOUR PERCENT ELIMINATING EXPENSES HAS AN ESPECIALLY SIGNIFICANT EFFECT ON THE PERFORMANCE OF STEADMAN AMERICAN INDUSTRY WHICH RETURNED NINE POINT ONE PERCENT LAST YEAR MAKING IT THE SIX HUNDRED THIRTY THIRD BEST PERFORMING FUND OUT OF A TOTAL OF NINE HUNDRED FIFTY THREE THAT WERE AROUND FOR THE TWELVE MONTH PERIOD IGNORE EXPENSES AND STEADMAN AMERICAN INDUSTRY BECOMES THE EIGHTY EIGHTH BEST PERFORMING FUND WITH A RETURN OF TWENTY THREE POINT NINE PERCENT IN QUOTE ON LOOKING INTO THE ABYSS UNTIMELY THOUGHTS ON CULTURE AND SOCIETY QUOTE KNOPF TWO HUNDRED TWENTY FOUR PAGES TWENTY FOUR DOLLARS THE DISTINGUISHED HISTORIAN GERTRUDE HIMMELFARB HAS GIVEN US A KIND OF FEVER CHART OF CONTEMPORARY INTELLECTUAL FASHION THE WORD ABYSS SUGGESTS THAT THE DIAGNOSIS WILL NOT BE ENCOURAGING INDEED MANY OF THE PHENOMENA THAT MS. HIMMELFARB DISCUSSES IN THESE SEVEN ESSAYS ALL OF WHICH WERE WRITTEN IN THE PAST THREE YEARS ARE THE OPPOSITE OF SALUBRIOUS THERE ARE FIRST OF ALL SUCH DIVERSE INTELLECTUAL MALADIES AS DECONSTRUCTION THE NEW HISTORICISM AND NIHILISTIC RELATIVISM ALL THE ANEMIC BUGBEARS THAT MAKE THE UNIVERSITY SUCH A CHEERFUL PLACE TODAY THEN THERE ARE VARIOUS HISTORICAL CATASTROPHES THE PERNICIOUS AMALGAMS OF NATIONALISM AND FUNDAMENTALISM FOR EXAMPLE WHICH ARE PROLIFERATING ANEW ABOVE ALL THERE IS THE HOLOCAUST THE SHADOW OF WHICH IN ONE WAY OR ANOTHER DARKENS ALL THESE ESSAYS A GRIM REMINDER THAT VERY BAD IDEAS CAN IN FACT HAVE VERY BAD CONSEQUENCES YET MS. HIMMELFARB'S REPORTS FROM THE ABYSS ARE MORE THAN GLOOMY BULLETINS HER ESSAYS ARE ALSO UNTIMELY THAT IS TO SAY UNFASHIONABLE LIKE NIETZSCHE'S UNTIMELY MEDITATIONS THEY CHALLENGE PREVAILING INTELLECTUAL ORTHODOXY IF MANY PROMINENT CRITICS TODAY FLIRT WITH NIHILISM MS. HIMMELFARB ANATOMIZES IT IN ORDER TO ATTACK IT IN HER INTRODUCTION SHE WRITES THAT HER BOOK IS DEDICATED TO THE PROPOSITION THAT THERE ARE SUCH THINGS AS TRUTH AND REALITY AND THAT THERE IS A CONNECTION BETWEEN THEM AS THERE IS ALSO A CONNECTION BETWEEN THE AESTHETIC SENSIBILITY AND THE MORAL IMAGINATION BETWEEN CULTURE AND SOCIETY THE AMAZING THING ABOUT THESE SENSIBLE STATEMENTS IS THAT YOU HAVE TO LOOK LONG AND HARD TO FIND PEOPLE TO DEFEND THEM NOT ONLY IN THE UNIVERSITY BUT ALSO IN CULTURAL LIFE GENERALLY WHEN IT COMES TO THE IDEA OF TRUTH THE PREVAILING WISDOM IS SUMMED UP BY THE INFLUENTIAL PHILOSOPHER RICHARD RORTY WHO SPEAKS WITH CONTEMPT OF METAPHYSICAL PRIGS I. E. THOSE WHO STILL BELIEVE THAT PHILOSOPHY HAS SOMETHING TO DO WITH SEEKING THE TRUTH PRESUMABLY MR. RORTY'S STUDENTS ARE ALL THOROUGHLY DISABUSED OF ANY SUCH QUOTE PRIGGISHNESS QUOTE MS. HIMMELFARB IS IMPATIENT WITH THIS BLASE RELATIVISM PERHAPS IT IS NOT GIVEN TO US TO POSSESS TRUTH WITH UTTER CLARITY BUT IT DOES NOT FOLLOW AS THE RORTARIANS INSIST THAT WE ARE COMPLETELY CUT OFF FROM THE TRUTH TRUE IT IS OFTEN DIFFICULT TO MAKE JUDGMENTS ABOUT HISTORICAL EVENTS OUR KNOWLEDGE IS FRAGMENTARY THE EVENTS ARE DAZZLINGLY COMPLEX BUT THE FASHIONABLE HISTORIANS WHO CLAIM THAT CONDEMNING HITLER OR STALIN IS AN ACT OF MORAL IMPERIALISM AND WHO PRETEND THAT THERE IS NO QUALITATIVE DIFFERENCE BETWEEN DEMOCRACY AND TOTALITARIANISM ARE MORE THAN OBTUSE THEY ARE CULPABLE ONE OF MS. HIMMELFARB'S GOALS IN THESE ESSAYS IS TO REVITALIZE THE IDEA OF GREATNESS HISTORICAL GREATNESS LITERARY GREATNESS EVEN MORAL GREATNESS MS. HIMMELFARB QUOTES MADAME DE SEVIGNE'S FAMOUS REMARK THAT NO MAN IS A HERO TO HIS VALET TODAY SHE SUGGESTS WE LIVE WITH A VALET'S VIEW OF THE WORLD EVERYTHING IS CUT DOWN TO SIZE EVEN BELOW SIZE IT CAN NO LONGER BE TAKEN FOR GRANTED THAT MILTON DESERVES TO BE MORE PRIVILEGED THAN MICKEY MOUSE THAT HIGH CULTURE IS HIGHER THAN POPULAR CULTURE AND THAT SOME EVENTS IN HISTORY ARE MORE MOMENTOUS THAN OTHERS ATTACKS ON GREATNESS SAY MORE ABOUT US THAN THE THINGS THEY WOULD DIMINISH AS HEGEL OBSERVED IF IT HAPPENS THAT NO MAN IS A HERO TO HIS VALET THIS IS NOT BECAUSE THE MAN IS NOT A HERO BUT BECAUSE THE VALET IS A VALET AS IS OFTEN THE CASE MANY OF OUR CHARACTERISTIC MALADIES ARE PARTLY A FUNCTION OF OUR VIRTUES THUS THE SUSPICION OF GREATNESS IS THE OTHER SIDE THE EXAGGERATION OR DISTORTION OF OUR LAUDABLE INSISTENCE ON EQUALITY AND DEMOCRACY MUST DEMOCRACY ENTAIL MEDIOCRITY OR TAKE THE IDEAL OF FREE SPEECH ONE OF THE BEDROCKS OF A DEMOCRATIC SOCIETY WE WANT FREE SPEECH DOES THAT MEAN WE MUST ALSO ACCEPT THE FREE CIRCULATION OF PORNOGRAPHY THESE ARE SOME OF THE CONUNDRUMS THAT LIBERALISM GENERATES FOR ITSELF IN OUR SOCIETY IT MAKES FOR SOME STRANGE SITUATIONS AS MS. HIMMELFARB OBSERVES WE LIVE IN A SOCIETY WHERE THE IDEAL OF FREE SPEECH AND THE INSISTENCE ON THE SEPARATION OF CHURCH AND STATE LEAD TO THE CURIOUS RESULT THAT THE PHOTOGRAPH OF A CRUCIFIX IMMERSED IN URINE CAN BE EXHIBITED IN A PUBLIC SCHOOL BUT A CRUCIFIX NOT IMMERSED IN URINE CANNOT BE EXHIBITED IN HER INTRODUCTION MS. HIMMELFARB NOTES THAT THE CRITICAL INSPIRATION FOR THESE ESSAYS WAS LIONEL TRILLING THE GREAT LITERARY CRITIC AND SOCIAL COMMENTATOR NOT ONLY HER TITLE BUT ALSO MANY PHRASES EXAMPLES AND ARGUMENTS ARE DRAWN FROM TRILLING'S WORK IT IS ABOVE ALL TRILLING'S MANNER A MANNER CHARGED WITH MORAL SERIOUSNESS BUT UNENCUMBERED BY PEDANTRY OR OBSCURANTISM THAT APPEALS TO HER UNLIKE MANY CRITICS THEN OR NOW TRILLING WAS ABLE TO RESIST THE INSIDIOUS IDEOLOGICAL AND POLITICAL FASHIONS OF HIS TIME WITHOUT THE COARSENING OF MIND THAT OFTEN COMES WITH DOING BATTLE AND ALSO WITHOUT THE TIMIDITY AND EQUIVOCATION THAT RETREATS FROM BATTLE IN AN EXCESS OF FASTIDIOUSNESS BOTH ARE NECESSARY INTELLECTUAL INTEGRITY AS WELL AS THE COURAGE TO QUOTE DO BATTLE QUOTE FOR IDEAS AND BOTH ARE RARE WE MUST BE GRATEFUL TO MS. HIMMELFARB FOR REMINDING BOTH ARE STILL POSSIBLE IWERKS ENTERTAINMENT INCORPORATED BURBANK CALIFORNIA SAID IT SIGNED AN AGREEMENT WITH BLOCKBUSTER ENTERTAINMENT CORPORATION TO DESIGN AND BUILD MOTION SIMULATION THEATERS FOR BLOCKBUSTER'S PLANNED CHAIN OF FAMILY ENTERTAINMENT COMPLEXES TERMS WEREN'T DISCLOSED IWERKS WHICH SPECIALIZES IN MAKING SPECIALTY THEATERS AND SIMULATOR RIDES FOR AMUSEMENT VENUES ALSO SAID IT WILL DEVELOP AND PRODUCE A LIBRARY OF FILMS EXCLUSIVELY FOR THE BLOCKBUSTER VENTURE ANNOUNCED LAST YEAR BLOCKBUSTER FORT LAUDERDALE FLORIDA IS A VIDEO RENTAL CHAIN THE SITES AND OPENING DATES FOR THE COMPANY'S FIRST ENTERTAINMENT COMPLEXES HAVEN'T BEEN DISCLOSED IWERKS'S STOCK ROSE TWO DOLLARS AND TWENTY FIVE CENTS OR NINE POINT NINE PERCENT TO CLOSE AT TWENTY FIVE DOLLARS ON THE NASDAQ STOCK MARKET BLOCKBUSTER'S STOCK FELL EIGHTY SEVEN POINT FIVE CENTS TO CLOSE AT TWENTY FOUR POINT EIGHT SEVEN FIVE DOLLARS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BUOYED BY INVESTMENT GAINS CIGNA CORPORATION'S PROFIT SOARED IN THE FOURTH QUARTER THE PHILADELPHIA BASED INSURANCE COMPANY EARNED ONE HUNDRED NINETY FOUR MILLION DOLLARS OR TWO DOLLARS AND SEVENTY CENTS A SHARE COMPARED WITH FIFTY MILLION DOLLARS OR SEVENTY CENTS A SHARE IN THE YEAR BEFORE PERIOD THE LATEST RESULTS INCLUDE CAPITAL GAINS OF ONE HUNDRED TWO MILLION DOLLARS COMPARED WITH NINETEEN MILLION DOLLARS IN THE PRIOR YEAR INDIVIDUAL BUSINESSES POSTED MIXED OPERATING RESULTS IN THE QUARTER THE COMPANY'S GROUP LIFE AND HEALTH INSURANCE BUSINESS EARNED ONE HUNDRED FIFTY FIVE MILLION DOLLARS COMPARED WITH ONE HUNDRED FIFTEEN MILLION DOLLARS A YEAR EARLIER PENSION PROFITS WERE FLAT AT FORTY FOUR MILLION DOLLARS INDIVIDUAL LIFE INSURANCE AND ANNUITY PROFITS ROSE TO THIRTY THREE MILLION DOLLARS FROM TWENTY FOUR MILLION DOLLARS THE PROPERTY AND CASUALTY SEGMENT HAD A ONE HUNDRED TWENTY FOUR MILLION DOLLAR LOSS COMPARED WITH A ONE HUNDRED FIFTEEN MILLION DOLLAR LOSS THE YEAR BEFORE CIGNA SAID IT EXPECTS TO LOSE TWENTY FIVE MILLION DOLLARS ON THE LOS ANGELES EARTHQUAKE IN THE CURRENT QUARTER IN A RARE USE OF THE CONSTITUTIONAL BAN ON STATE LAWS INTERFERING WITH CONTRACTS A FEDERAL COURT STRUCK DOWN A MINNESOTA LAW THAT RETROACTIVELY CHANGED THE TERMS OF A WORKERS' COMPENSATION INSURANCE FUND THE DECISION BY JUDGE JAMES ROSENBAUM IN MINNEAPOLIS IS SIGNIFICANT BECAUSE COURTS RARELY INVOKE THE SO CALLED CONTRACTS CLAUSE OF THE U. S. CONSTITUTION TO INVALIDATE LEGISLATION IF ADOPTED ELSEWHERE THE JUDGE'S REASONING COULD BE USED TO CHALLENGE A WIDE RANGE OF REGULATIONS SUCH AS LAWS CHANGING THE TERMS OF STATE SPONSORED RETIREMENT FUNDS OR ESTABLISHING NEW RIGHTS THAT ALTER EXISTING FRANCHISE AGREEMENTS QUOTE THE MESSAGE OF THIS CASE IS THAT THE GOVERNMENT MUST UPHOLD ITS SIDE OF THE BARGAIN AND THAT YOU CAN'T CHANGE THE CONTRACT AFTER THE FACT FOR SOME POLITICALLY EXPEDIENT PURPOSE QUOTE SAID JAMES SHAFLEY A LAWYER WITH THE MINNEAPOLIS LAW FIRM ROBINS KAPLAN MILLER AND CIRESI WHICH REPRESENTED SOME OF THE PLAINTIFFS IN THE CASE THE CASE AROSE WHEN THE MINNESOTA LEGISLATURE PASSED A LAW CHANGING THE WAY EXCESS FUNDS IN THE WORKERS' COMPENSATION SYSTEM WERE TO BE DISTRIBUTED IN NINETEEN SEVENTY NINE THE STATE BEGAN REQUIRING INSURANCE COMPANIES AND SELF INSURED EMPLOYERS TO CONTRIBUTE MONEY TO A POOL THAT PROVIDES REINSURANCE FOR WORKERS' COMPENSATION CLAIMS SUCH REINSURANCE IS DESIGNED TO PROVIDE EXTRA COVERAGE FOR UNUSUALLY LARGE CLAIMS UNDER THE ORIGINAL TERMS OF THE FUND WHICH THE JUDGE DEFINED AS A CONTRACT INSURERS AND OTHER COMPANIES THAT CONTRIBUTED MONEY WERE ENTITLED TO REFUNDS IF THE POOL ACCUMULATED A SURPLUS AS IT TURNED OUT THE FUND AMASSED A SIZABLE SURPLUS ABOUT FOUR HUNDRED TWO MILLION DOLLARS OVER A PERIOD OF ABOUT THIRTEEN YEARS BUT LAST YEAR HOPING TO REDUCE WORKERS' COMPENSATION COSTS OF EMPLOYERS THE MINNESOTA LEGISLATURE DECIDED TO DISTRIBUTE THE EXCESS MONEY TO EMPLOYERS RATHER THAN INSURANCE COMPANIES THAT DECISION JUDGE ROSENBAUM RULED WAS UNCONSTITUTIONAL BECAUSE IT INTERFERED WITH THE CONTRACTUAL RELATIONSHIP BETWEEN THE STATE AND THE INSURANCE COMPANIES THE MINNESOTA LEGISLATURE HAS ANNIHILATED THESE SETTLED CONTRACTUAL EXPECTATIONS THE JUDGE WROTE IT SIMPLY AWARDS THE WINDFALL TO DIFFERENT LEGISLATIVELY PREFERRED RECIPIENTS BY RELYING ON THE CONTRACTS CLAUSE THE OPINION RESURRECTS A THEORY THAT WAS A STAPLE OF FEDERAL CONSTITUTIONAL LITIGATION BACK IN THE NINETEEN TWENTIES AND THIRTIES BUT IS NOW USED MUCH MORE SPARINGLY SAID JOHN JEFFRIES A PROFESSOR OF CONSTITUTIONAL LAW AT THE UNIVERSITY OF VIRGINIA JOCELYN OLSON A MINNESOTA ASSISTANT ATTORNEY GENERAL SAID STATE OFFICIALS HAVEN'T MADE A DECISION ABOUT WHETHER TO APPEAL AFTER THREE BRIEF DAYS OF DEFENSE TESTIMONY PROSECUTORS IN THE WORLD TRADE CENTER BOMBING TRIAL BEGAN PRESENTING CLOSING ARGUMENTS TO THE JURY ASSISTANT U. S. ATTORNEY HENRY J. DEPIPPO SAID EVIDENCE FROM THE EIGHTEEN WEEK TRIAL CLEARLY SHOWED THE FOUR DEFENDANTS HAD A SINGLE GOAL UNITING ALL OF THEIR ACTIONS TO BOMB SOMETHING IN THE UNITED STATES THE PLOT COMMENCED HE CONTENDED IN THE SUMMER OF NINETEEN NINETY TWO WHEN DEFENDANT AHMAD AJAJ TOOK A COURSE IN WEAPONS AND EXPLOSIVES TRAINING IN THE MIDDLE EAST AND THEN RETURNED TO THE U. S. BEARING A TERRORIST KIT INCLUDING ANTI JEWISH HATE LITERATURE AND BOMB MAKING NOTES IN HIS HANDWRITING THE DEFENDANTS ARE ALL CHARGED WITH CONSPIRACY IN THE FEBRUARY TWENTY SIXTH NINETEEN NINETY THREE BLAST THAT KILLED SIX PEOPLE PROSECUTORS ARE EXPECTED TO CONTINUE THEIR SUMMATION TODAY THE CASE IS EXPECTED TO GO TO THE JURY AS EARLY AS THE END OF THIS WEEK MARGARET A. JACOBS CONTRIBUTED TO THIS ARTICLE ANDRE ROUSSELET CHAIRMAN OF FRANCE'S CANAL PLUS S. A. STEPPED DOWN YESTERDAY AS THE HEAD OF THE PAY T. V. OPERATOR IN A DISAGREEMENT OVER THE RESHUFFLING OF STAKES IN THE GROUP MR. ROUSSELET WHO RESIGNED LATE LAST WEEK FROM THE BOARD OF HAVAS S. A. WILL RECOMMEND TO CANAL PLUS'S BOARD AT A MEETING TOMORROW THAT PIERRE LESCURE SUCCEED HIM AS CHAIRMAN CANAL PLUS SAID FOLLOWING MR. ROUSSELET'S DEPARTURE FROM THE HAVAS BOARD THERE WAS STRONG SPECULATION THAT HE WOULD RESIGN AS CHAIRMAN OF CANAL PLUS MR. ROUSSELET TOOK ISSUE WITH HAVAS'S DECISION TO COMBINE ITS TWENTY THREE POINT FIVE PERCENT STAKE IN CANAL PLUS WITH THE TWENTY POINT ONE PERCENT OWNED BY FRANCE'S COMPANY GENERALE DES EAUX MR. ROUSSELET STORMED OUT OF A HAVAS BOARD MEETING LAST WEEK FOLLOWING THE DECISION WHICH HE APPARENTLY VIEWED AS A THREAT TO HIS AUTONOMY MR. ROUSSELET IS A FOUNDER OF CANAL PLUS WHICH BEGAN OPERATIONS IN NINETEEN EIGHTY FOUR AFTER THE COMPANY GOT OFF TO A FITFUL START MR. ROUSSELET TWO YEARS LATER NEGOTIATED A FAVORABLE BROADCASTING LICENSE FROM THE GOVERNMENT THAT GREATLY IMPROVED THE PAY T. V. COMPANY'S FORTUNES QUOTE WE FOUND A BEE GUH ER QUOTE THE VOICE OVER THE PHONE SANG IN CHINESE AT SEVEN FORTY FIVE IN THE MORNING HE HAS LONG EARS CAN YOU MEET ME UNDER THE BRIDGE AT FOUR THIS AFTERNOON TO HAVE A LOOK THE STERILIZATION OF LIFE THAT ACCOMPANIED THE RISE TO POWER OF THE CHINESE COMMUNISTS IN NINETEEN FORTY NINE BROUGHT WITH IT AN ABOLITION OF PROSTITUTION OPIUM USE AND THE UNEQUAL DISTRIBUTION OF POVERTY IT ALSO BROUGHT FOR HEALTH REASONS A PROHIBITION AGAINST DOGS AS PETS IN CHINA'S TEEMING CITIES FOR THE NEXT FORTY YEARS THE ONLY CHINESE PERMITTED TO KEEP DOGS WERE PEASANTS SOME WERE RAISED AS PETS OTHERS TO SATISFY CHINA'S APPETITE FOR DOG MEAT WITHIN THE PAST TWO YEARS HOWEVER AS CHINA HAS LOOSENED ITS NOOSE AROUND MOST NONPOLITICAL AREAS OF LIFE PUPPIES HAVE BEGUN TO POUR INTO CHINA'S CITIES TO THE DELIGHT OF MILLIONS OF CHINESE CHILDREN JUST IN TIME FOR THE YEAR OF THE DOG THE LUNAR NEW YEAR THAT BEGAN LAST WEEK INTELLIGENCE ABOUT NOUVEAU RICHE CHINA'S LATEST CRAZE HAD REACHED ME IN NEW YORK IN A LETTER FROM SICHUAN PROVINCE EARLIER IN THE YEAR BUT IN STAID BEIJING I FOUND ON ARRIVAL IT WASN'T SO EASY TO MAKE A CANINE CONNECTION FUCHENGMEN STATION ON BEIJING'S LOOP SUBWAY LINE PROVED TO BE A STOP TOO SOON AT THE NEXT STOP A FRUIT PEDDLER ADVISED THAT THE GUAN YUAN AGRICULTURAL MARKET WHICH IN THE PAST HAD OFFERED PUPPY DOGS HAD BEEN TORN DOWN TO MAKE WAY FOR A NEW HIGH RISE THE PRESENT PUPPY LOCATION SHE COUNSELED WAS ADJACENT TO THE BIRD MARKET AT THE XI ZHI MEN BRIDGE COLORFUL BIRDS AND AQUARIUM FISH ARE CHINA'S TRADITIONAL HOUSE PETS AND AT THE XI ZHI MEN BIRD MARKET DOZENS OF VENDORS IN OUTDOOR STALLS WERE SELLING CANARIES AND PARAKEETS IN CAGES CAGES WITHOUT BIRDS BIRDS WITHOUT CAGES AND BIRDSEED BUT PUPPIES WERE NOWHERE TO BE SEEN WHAT KIND OF A DOG ARE YOU LOOKING FOR ASKED A MAN STRADDLING A BICYCLE WHO LATER GAVE HIS TRADE NAME AS MR. PUPPY SALES XU AN AMERICAN DOG I ANSWERED PRESENTING MYSELF AS A BEIJING BASED BUSINESSMAN WHO DEALT IN INDUSTRIAL PLASTICS QUOTE HOW ABOUT A CHINESE DOG QUOTE HE REPLIED AND HE ZIPPED OPEN HIS JACKET POCKET AND OUT POKED A PUG FACED POOCH JUST A FEW WEEKS OLD SOMETHING WITH LONGER EARS I SAID HOW ABOUT THIS A COLLEAGUE A FEW STEPS AWAY BY THE NAME OF GUO BROKE IN HE OPENED A CANVAS BAG AND OUT PEEKED A TINY TERRIER MR. GUO STARTING TO GET SILLY SAID HE HAD A DOG WITH AN AMERICAN PASSPORT IF HE HAS A VALID PASSPORT I SAID I WILL PAY FIVE HUNDRED DOLLARS SIGHT UNSEEN MR. GUO WHO UNLIKE MR. XU SELLS DOGS AS A SIDELINE ASKED WHAT KIND OF A DOG I WAS REALLY INTERESTED IN WITHOUT A CLUE AS TO WHAT DOGS OTHER THAN PEKINGESE ARE CALLED IN CHINESE AND NOT FINDING THE PICTURE I WAS LOOKING FOR IN ONE HUNDRED FAMOUS BREEDS THE STANDARD DOG REFERENCE IN BEIJING I STARTED TO DESCRIBE A DOG ABOUT A FOOT HIGH WITH FIVE INCH EARS AND BROWN BLACK AND WHITE COLORING I NEEDN'T HAVE WORKED SO HARD BEE GUH ER IS A WORKING TERM IN CHINESE DOG CIRCLES THE DISCUSSION TURNED TO WHETHER I PREFERRED A CROPPED TAIL DOGS ESPECIALLY BEAGLES DON'T LIKE THEIR TAILS LOPPED I ARGUED QUOTE THEY DON'T CARE QUOTE MR. GUO COUNTERED A TAIL IS LIKE A RUDDER ON A SHIP I RETORTED HOW IS A BEAGLE GOING TO CHASE RABBITS THROUGH THE WOODS WITHOUT HIS TAIL IF HE COULD LOCATE A BEAGLE MR. GUO SAID HE WOULD GIVE ME A CALL THE PRICE WOULD BE ONE THOUSAND YUAN ONE HUNDRED EIGHTY DOLLARS WITH OR WITHOUT THAT WAS TWO HUNDRED PERCENT OR MORE BELOW THE BEAGLE MARKET IN CHINA I LATER LEARNED BEWARE OF BAIT AND SWITCH A BEIJING FRIEND WARNED BECAUSE CHINA AS YET HAS NO KENNEL CLUBS WHICH CERTIFY BREEDS ONE HUNDRED TWENTY FAMOUS BREEDS ANOTHER STANDARD REFERENCE EXHORTS AUTHENTICATING PURE BREEDS CAN BE A PROBLEM MOST OF CHINA'S BIG CITIES NOW HAVE DOG MARKETS BUT FEW BEAT THE BUSTLE IN CHENGDU ON WEDNESDAYS THE GREEN SHEEP PALACE DOG MARKET DRAWS DOZENS OF MERCHANTS AND HUNDREDS OF BUYERS AND ON SUNDAYS TEN THOUSAND CUSTOMERS LITTLE BOYS AND GIRLS IN TOW SLITHER SHOULDER TO SHOULDER THROUGH THE AISLES AND LANES THE MARKET BEGINS ON THE MAIN AVENUE WHERE MIXED BREEDS DISPLAYED IN SATCHELS WICKER BASKETS BICYCLE BASKETS AND ON RIBBON LEASHES ARE OFFERED AT PAVEMENT'S EDGE FOR ONE HUNDRED DOLLARS OR LESS MOST ARE JUST WEEKS OLD SOMETIMES A COMPLETE LITTER IS HUDDLED IN A BOX THE HALF MILE LONG EARTHEN LANE THAT LEADS FROM THE AVENUE TO THE HEART OF THE MARKET IS WHERE DOG ACCESSORIES CAGES BASKETS FOR SLEEPING LEASHES AND DOG FOOD ARE SOLD WITH NO DOMESTIC PET FOOD INDUSTRY THE MOST AFFLUENT CHINESE FEED THEIR DOGS OFF OF THEIR PLATES FOR MANY DOGS IN CHINA THOUGH FOOD IS BUTCHER SHOP UNCONSUMABLES SOLD BY WEIGHT OUT OF BULK CONTAINERS THE MORE CAREFULLY BRED DOGS IN CHENGDU ARE SOLD BY PROFESSIONALS IN COVERED LICENSED STALLS HERE YOU CAN FIND BETTER MIXED BREEDS AT FIVE HUNDRED DOLLARS SHIH TZUS FOR ONE THOUSAND FOUR HUNDRED DOLLARS AND PEKINGESE FOR FIVE THOUSAND DOLLARS MANY MERCHANTS ARE QUITE SATISFIED TO SELL JUST ONE DOG A WEEK THE STALL AREA ALSO INCLUDES IMPORTED DOG PERFUMES AND OTHER GROOMING AIDES IMPORTED DOG FOOD AND TOYS FOR PUPS THE MOST EXPENSIVE DOGS IN CHINA SUCH AS ALL WHITE BREEDING FEMALE PEKINGESE ARE OFFERED PRIVATELY FOR FIFTEEN THOUSAND DOLLARS AND MORE LOCAL GOVERNMENTS IN CHENGDU AND ELSEWHERE IN CHINA MAKE LITTLE EFFORT TO REGULATE THE HEALTH OF DOGS FOR SALE DOG LICENSES EXIST BUT FEW PURCHASE THEM CHENGDU MAINTAINS A PUBLICLY RUN PET CLINIC AT THE ENTRANCE TO THE GREEN SHEEP PALACE DOG MARKET WHERE FOR FIFTEEN DOLLARS A PUPPY CAN BE INNOCULATED BUT THERE IS NO MONITORING AND MOST OWNERS CHOOSE TO SAVE THE FEE WITH LITTLE HEALTH SUPERVISION CUDDLY BALLS OFTEN LATER EMERGE AS SICK PUPS IN FACT MANY NEW DOG OWNERS EAGER TO PLEASE AN ONLY CHILD HAVE NO IDEA AT ALL WHAT THEY ARE GETTING INTO A FEW MONTHS AFTER PURCHASE THEY UNLOAD THEIR FURRY BUNDLE AT A STEEP DISCOUNT MANY CHINESE HAVE AS LITTLE AS ONE HUNDRED OR TWO HUNDRED SQUARE FEET TO LIVE IN FURTHER WITH FEW OPEN OUTDOOR SPACES OR EVEN EMPTY SIDEWALKS CHINA'S DOGS ARE RARELY TAKEN OUT FOR WALKS INSTEAD THEY ARE TRAINED TO VISIT PANS THAT ARE LEFT FOR THEM IN THEIR CAGES OR IN A CORNER OF THE APARTMENT ACCURACY ISN'T ALWAYS THE BEST WITH THE POOL OF BREEDING STOCK STILL TINY MANY CHINESE PET DOGS COME FROM LONG DISTANCES A WOMAN IN HER TWENTIES I MET STANDING IN FRONT OF ONE OF BEIJING'S MOST CHIC DEPARTMENT STORES CRADLING A PUPPY IN A BASKET HAD TRAVELED THIRTY THREE HOURS ON THE TRAIN TO BEIJING FROM CANTON SHE HAD BROUGHT ALONG FOUR YOUNG PUPS WHICH SHE WAS SELLING FOR ONE HUNDRED DOLLARS EACH HER DOGS CAME FROM SHENZHEN ADJACENT TO HONG KONG OTHER DOGS COME OVER THE BORDER FROM RUSSIA STILL OTHERS ARE BRED LOCALLY OR IN OTHER PARTS OF THE COUNTRY IN TODAY'S MONEY ORIENTED CHINA WHERE ALMOST EVERYONE IS ANGLING TO BECOME AN ENTREPRENEUR BREEDING PUPPIES AT HOME PROVIDES AN ADDITIONAL OPPORTUNITY BREEDING STOCK IS OFTEN WHAT CAN BE BORROWED I FOUND THAT OUT FIRST HAND LAN LAN AN ALMOST LHASA APSO ONE YEAR OLD PURCHASED FOR FOUR HUNDRED FIFTY DOLLARS FROM BEAUTY SALON PROFITS WAS UNABLE TO MEET ME AT CHENGDU AIRPORT RONG RONG HIS MISTRESS WHO FIRST CLUED ME INTO CHINA'S PUPPY DOG RAGE FROM AFAR EXPLAINED AT THE GATE THAT LAN LAN WAS AWAY ON LOAN ON BREEDING BUSINESS COURTING TWO GIRLFRIENDS HE WOULD BE ALLOWED HOME WHEN POSTERITY WAS SERVED MR. KOLATCH WRITES FREQUENTLY ABOUT CHINA HOBBLED BY WEAKER RETAIL DEMAND FOR ITS CORE WOMEN'S SPORTSWEAR LIZ CLAIBORNE INCORPORATED AS EXPECTED POSTED A SEVENTY TWO PERCENT DECLINE IN FOURTH QUARTER PROFIT AND A FORTY TWO PERCENT DROP IN EARNINGS FOR ALL OF NINETEEN NINETY THREE THE NEW YORK APPAREL MAKER SAID FOURTH QUARTER NET PLUNGED TO FOURTEEN POINT NINE MILLION DOLLARS OR NINETEEN CENTS A SHARE FROM FIFTY ONE POINT NINE MILLION DOLLARS OR SIXTY THREE CENTS A SHARE A YEAR EARLIER SALES WERE FLAT AT FIVE HUNDRED FORTY FOUR MILLION DOLLARS FOR NINETEEN NINETY THREE CLAIBORNE'S PROFIT FELL TO ONE HUNDRED TWENTY SIX POINT NINE MILLION DOLLARS OR ONE DOLLAR AND FIFTY SIX CENTS A SHARE DOWN FROM TWO HUNDRED EIGHTEEN POINT EIGHT MILLION DOLLARS OR TWO DOLLARS AND SIXTY ONE CENTS A SHARE A YEAR EARLIER JEROME CHAZEN CHAIRMAN AND CHIEF EXECUTIVE SAID QUOTE WITHOUT A DOUBT NINETEEN NINETY THREE WAS THE TOUGHEST YEAR WE'VE EVER HAD QUOTE HE ADDED THAT ON THE WHOLE WE VIEW NINETEEN NINETY FOUR AS A YEAR OF REBUILDING AND RESTRUCTURING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CLAIBORNE SHARES CLOSED AT TWENTY DOLLARS AND FIFTY CENTS A SHARE UP TWELVE POINT FIVE CENTS HEIKO THIEME LIKES TO PLAY WITH ROCKET FUEL TINY RISKY STOCKS THAT MIGHT PAY OFF BIG HE OFTEN INVESTS IN THEM THROUGH PRIVATE PLACEMENTS WHICH AREN'T AVAILABLE TO THE GENERAL PUBLIC FOR THE PAST THREE YEARS SUCH STOCKS HAVE HELPED PROPEL MR. THIEME TO THE TOP OF THE MUTUAL FUND ROSTERS BUT LATELY HIS HIGH FLYING PICKS ARE SPUTTERING SO FAR IN NINETEEN NINETY FOUR HIS AMERICAN HERITAGE FUND IS DOWN ABOUT FIVE PERCENT WHILE THE OVERALL MARKET IS UP ABOUT ONE PERCENT HIS PORTFOLIO WAS TORPEDOED LAST WEEK BY ITS SECOND BIGGEST HOLDING SPECTRUM INFORMATION TECHNOLOGIES AMERICAN HERITAGE WAS THE LARGEST SINGLE HOLDER OF SPECTRUM WHICH LOST SOME FORTY PERCENT LAST WEEK AND IS DOWN NEARLY SEVENTY PERCENT SINCE JOHN SCULLEY FORMER HEAD OF APPLE COMPUTER TOOK THE HELM IN OCTOBER ON FEBRUARY SEVENTH MR. SCULLEY JUMPED SHIP CHARGING AMONG OTHER THINGS THAT SPECTRUM HAD DECEIVED HIM ABOUT ITS FINANCIAL SITUATION WHICH THE COMPANY THEN HAD TO RESTATE UNDAUNTED MR. THIEME BOUGHT MORE SPECTRUM STOCK EVEN AS IT PLUNGED QUOTE LOOK I'M AN AGGRESSIVE GROWTH FUND I'M HERE TO TAKE RISKS HE SAYS MR. THIEME'S PREDILECTION FOR RISK IS EVIDENT IN HIS FUND'S OTHER HOLDINGS TOO HE KEEPS TEN PERCENT TO FIFTEEN PERCENT OF HIS PORTFOLIO IN PRIVATE PLACEMENTS OR RESTRICTED SECURITIES THAT DON'T TRADE PUBLICLY HE OWNS STOCKS IN COMPANIES SO SMALL YOU WON'T FIND THEM IN NEWSPAPERS' DAILY LISTINGS FOR THE NASDAQ STOCK MARKET AND HE USED FIVE PERCENT TO TEN PERCENT OF THE FUND'S PORTFOLIO TO GAMBLE ON SHORT TERM PRICE BLIPS WHAT'S MORE HE SOMETIMES USES BORROWED MONEY TO TRY TO JUICE UP THE FUND'S RETURNS IN THE PAST THREE YEARS THE WAGERS HAVE PAID OFF AMERICAN HERITAGE IS THE TOP GENERAL STOCK FUND IN THE U. S. FOR THE THREE YEARS THROUGH FEBRUARY THIRD NEARLY TRIPLING ITS VALUE ACCORDING TO LIPPER ANALYTICAL SERVICES PREDICTABLY RED HOT RESULTS HAVE ATTRACTED A FLOOD OF MONEY THE FUND DWINDLED TO ABOUT ONE MILLION DOLLARS ON TERRIBLE PERFORMANCE WHEN MR. THIEME A GERMAN BORN MANAGER WHO FOR YEARS SERVED AS A CONSULTANT TO DEUTSCHE BANK TOOK IT OVER IN FEBRUARY NINETEEN NINETY SINCE THEN ITS ASSETS HAVE SWELLED TO ABOUT ONE HUNDRED FIFTY MILLION DOLLARS STILL THERE ARE SOME DETRACTORS STAN TRILLING A PAINEWEBBER BROKER IN LOS ANGELES SAYS HE DOUBTS MANY INVESTORS REALIZE HOW MUCH OF MR. THIEME'S SUCCESS COMES FROM GETTING SMALL COMPANIES TO SELL HIM CHEAP STOCK IN PRIVATE PLACEMENT DEALS I WENT IN TO PITCH HIM ON A PARTICULAR STOCK MR. TRILLING RECALLS HE SAID HE WAS ONLY INTERESTED IF HE COULD GET IT AT A DISCOUNT FROM THE PREVAILING MARKET PRICE SUCH A DISCOUNT HELPED BOOST THE PERFORMANCE OF MR. THIEME'S BIGGEST PICK SENETEK THE SMALL BRITISH BIOTECHNOLOGY COMPANY IS WORKING ON A DRUG TO TREAT MALE IMPOTENCE AND JOHNSON AND JOHNSON PLANS TO MARKET THE DRUG IN THE U. S. IF IT IS APPROVED HERE DURING THE PAST YEAR AND A HALF SENETEK SHARES SOARED TO ABOVE FIVE DOLLARS FROM ABOUT ONE DOLLAR BUT MR. THIEME'S PAPER GAINS ARE EVEN LARGER HE BOUGHT ONE POINT NINE MILLION SHARES IN A PRIVATE PLACEMENT DEAL IN SEPTEMBER NINETEEN NINETY TWO AT FIFTY CENTS A SHARE ABOUT HALF SENETEK'S PUBLICLY TRADED PRICE AROUND THAT TIME MR. TRILLING SUGGESTS THAT IT'S THOSE SORTS OF MANEUVERS MORE THAN STOCK PICKING SKILLS THAT HAVE VAULTED MR. THIEME TO THE TOP OF THE PERFORMANCE RANKINGS HE HAS SEXY NUMBERS BUT HE'S NOT FOR ME SAYS MICHAEL STOLPER A SAN DIEGO INVESTMENT CONSULTANT THERE ARE POINTS OF AGGRESSIVENESS IN MR. THIEME'S INVESTMENT STYLE THAT MAKE ME UNCOMFORTABLE THERE'S NOT AN OUNCE OF HUMILITY IN THE MAN QUOTE FOR HIS PART MR. THIEME AGREES THAT MANY OF HIS INVESTMENT POSITIONS ARE HIGH RISK BUT HE POINTS OUT THAT HE ALSO INVESTS IN BIG COMPANIES SUCH AS INTERNATIONAL BUSINESS MACHINES WESTINGHOUSE ELECTRIC CITICORP AND PHILIP MORRIS OFTEN WHEN THEIR STOCKS HAVE BEEN BEATEN DOWN MR. THIEME CONCURS THAT HE OFTEN BUYS STOCK FROM SMALL PUBLIC COMPANIES AT A DISCOUNT FROM PUBLIC MARKET PRICES AMERICAN HERITAGE IS RESTRICTED FROM SELLING THIS STOCK FOR A PERIOD OF TIME WHICH CAN RANGE FROM AS LITTLE AS A MONTH TO AS MUCH AS TWO YEARS THE DISCOUNTS ARE OFTEN TEN PERCENT TO FORTY PERCENT HE SAYS BUT CAN RUN AS HIGH AS FIFTY PERCENT TO SEVENTY PERCENT ON THE MOST SPECULATIVE STOCKS HOWEVER MR. THIEME POOH POOHS THE IDEA THAT DISCOUNTS DRIVE HIS GOOD THREE YEAR RECORD THEY MAKE ONLY A NEGLIGIBLE CONTRIBUTION TO OVERALL RESULTS HE SAYS YET IN THE SAME BREATH HE BOASTS THAT HE FIGHTS TO REAP AS MUCH AS WE CAN CONCEIVABLY JUSTIFY IN DISCOUNTS SEVERAL THINGS MAY IMPEL COMPANIES TO OFFER DISCOUNTS ON THEIR STOCK TO BIG BUYERS THEY MAY NEED MONEY QUICKLY OR MAY NOT WANT TO PUT UP WITH THE EXPENSE OR THE SCRUTINY OF A PUBLIC STOCK OFFERING SOME MONEY MANAGERS CONSIDER SUCH SPECIAL TREATMENT UNFAIR IF A STOCK IS TRADING AT TWENTY DOLLARS WHY SHOULD SOMEBODY HAVE THE RIGHT TO BUY IT AT EIGHTEEN DOLLARS DEMANDS BRETT BRUBAKER PRESIDENT OF ABRAHAM AND SONS IN CHICAGO I'M TICKED THAT'S NOT FAIR ASKED WHY COMPANIES GIVE HIM DISCOUNTS MR. THIEME SAYS THAT HAVING AMERICAN HERITAGE AS A HOLDER CONFERS SOME PRESTIGE AND LEGITIMACY ON A COMPANY QUOTE IF WE'RE IN AND WE'RE THE NUMBER ONE FUND FOR THE PAST THREE YEARS WALL STREET TRADES ON PERCEPTION QUOTE HE SAYS UNTIL LATELY HAVING MR. THIEME AS A SHAREHOLDER PROVIDED ANOTHER BENEFIT HE OFTEN TOUTED HIS FAVORITE STOCKS ON BUSINESS TELEVISION NETWORK C. N. B. C. WHERE HE WAS A REGULAR GUEST BUT MR. THIEME RECENTLY WAS TOLD HIS SERVICES ON C. N. B. C. WOULDN'T BE REQUIRED AS OFTEN AS BEFORE PETER STURTEVANT VICE PRESIDENT OF DAYTIME NEWS AT C. N. B. C. SAYS THE CABLE NETWORK HAS NOTHING AGAINST MR. THIEME BUT WANTS TO GET FRESH FACES INTO ITS MIX EVERY ONCE IN A WHILE WE SHAKE UP THE LIST OF NAMES HE SAYS BUT MR. THIEME ISN'T HAPPY ABOUT THE WAY C. N. B. C. GAVE HIM THE COLD SHOULDER THEY SAID DON'T BOTHER TO COME UNLESS WE CALL HE FUMES I'M NOT A LITTLE WEASEL IN ANY CASE MR. THIEME IS AT NO LOSS FOR NEW PLANS HE INTENDS TO START A MORE CONSERVATIVE MUTUAL FUND SOON AND ALSO TO LAUNCH A HEDGE FUND A PRIVATE INVESTMENT PARTNERSHIP FOR WEALTHY INVESTORS HE'S ALSO TOYING WITH THE IDEA OF TRYING TO CONVERT AMERICAN HERITAGE FROM AN OPENEND MUTUAL FUND TO A CLOSED END FUND UNLIKE OPEN END FUNDS CLOSED END FUNDS ISSUE A FIXED NUMBER OF SHARES WHICH TRADE PUBLICLY LIKE NORMAL STOCKS THAT SETUP RELIEVES CLOSED END FUND MANAGERS OF HAVING TO COPE WITH A FLOOD OF REDEMPTIONS IN TIMES OF LOSS OR A CASCADE OF NEW MONEY TO INVEST WHEN PERFORMANCE IS GOOD IF AMERICAN HERITAGE WERE CLOSED END MR. THIEME SAYS IT COULD EASE THE PRESSURE ON HIM TO PRODUCE SHORT TERM RESULTS WALL STREET THINKS LONG TERM IS NEXT MONDAY HE SAYS SOTHEBY'S HOLDINGS INCORPORATED NAMED ITS CHIEF OF MARKETING WILLIAM RUPRECHT TO THE NEW POSITION OF MANAGING DIRECTOR OF NORTH AND SOUTH AMERICAN OPERATIONS MR. RUPRECHT THIRTY EIGHT YEARS OLD WILL OVERSEE MOST DAY TO DAY OPERATIONS OF THE NEW YORK BASED AUCTION HOUSE FREEING DIANA D. BROOKS NOW WORLD WIDE HEAD OF AUCTION OPERATIONS FROM MANY OF HER ADMINISTRATIVE DUTIES IN THE U. S. SHE TAKES OVER AS SOTHEBY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER ON APRIL FIRST AS PREVIOUSLY ANNOUNCED MR. RUPRECHT'S PROMOTION WAS ONE OF A SERIES THAT APPEARS TO TIP THE FIRM'S HAND TO WHAT SOTHEBY'S THINKS MAY BE THE ART MARKET'S GROWTH AREAS OF THE NINETEEN NINETIES FIVE EXECUTIVE VICE PRESIDENTS WERE NAMED DAVID NASH FIFTY ONE THE WORLD WIDE HEAD OF PAINTINGS AND SCULPTURE ROBERT WOOLLEY FIFTY WHOSE THEATRICAL AUCTIONEERING STYLE AT BENEFIT AUCTIONS HAS GARNERED THE COMPANY A GREAT DEAL OF PUBLICITY IN THE FASHION AND SOCIETY PRESS WARREN WEITMAN FORTY EIGHT HEAD OF BUSINESS DEVELOPMENT WHICH OVERSEES SOTHEBY'S TRUSTS AND ESTATES DIVISION AND APPRAISAL DIVISIONS AND JOHN BLOCK FORTY FIVE HEAD OF SOTHEBY'S JEWELRY DEPARTMENT THE COMPANY'S FASTEST GROWING AND MOST LUCRATIVE AREA MR. RUPRECHT THE NEW MANAGING DIRECTOR ALSO ADDED THE TITLE OF EXECUTIVE VICE PRESIDENT DURING THE ART MARKET BOOM OF THE LATE NINETEEN EIGHTIES AND SUBSEQUENT RECESSION MR. RUPRECHT OVERSAW THE COMPANY'S MARKETING EFFORTS HE PREVIOUSLY HEADED THE ORIENTAL RUG AND ANTIQUE CAR SALES DEPARTMENTS AND IS PERHAPS BEST KNOWN AS THE FIRM'S DEEP VOICED AUCTIONEER OF WATCHES NINETEENTH CENTURY PAINTINGS RUGS AND DECORATIVE ARTS AFTER YEARS OF A WEAK ART MARKET QUOTE THE CUP IS MORE THAN HALF FULL QUOTE SAID MR. RUPRECHT THERE IS AN ENERGY AND ENTHUSIASM AND OPTIMISM AT SOTHEBY'S NOW HE SAYS MRS. BROOKS FORTY THREE WHO IS SUCCEEDING PRESIDENT MICHAEL AINSLIE FIFTY ONE SPENDS MUCH OF HER TIME TRAVELING TO THE FIRM'S SALESROOMS AROUND THE WORLD AND SAID MR. RUPRECHT'S PROMOTION WILL FREE HER FROM ADMINISTRATIVE MATTERS HOWEVER SEVERAL DEPARTMENT HEADS WILL REPORT TO MR. RUPRECHT ON ADMINISTRATIVE CONCERNS SUCH AS STAFFING BUT WILL REPORT TO MRS. BROOKS ON STRATEGY AND AUCTION ISSUES SAINT JUDE MEDICAL INCORPORATED AGREED TO INVEST FIVE MILLION DOLLARS IN ADVANCED TISSUE SCIENCES INCORPORATED TO WORK WITH THE LA JOLLA CALIFORNIA COMPANY ON POSSIBLE DEVELOPMENT OF HEART VALVES FROM HUMAN TISSUE BASED IN SAINT PAUL MINNESOTA SAINT JUDE THE NATION'S BIGGEST MAKER OF MECHANICAL HEART VALVES WILL PAY FIVE MILLION DOLLARS FOR FIVE HUNDRED SIXTY THREE THOUSAND SHARES OR ONE POINT EIGHT SEVEN PERCENT OF ADVANCED TISSUE'S COMMON STOCK THE TWO COMPANIES WILL ALSO STUDY THE FEASIBILITY OF HEART VALVE REPLACEMENTS MADE FROM HUMAN TISSUE ADVANCED TISSUE SCIENCES REPLICATES HUMAN TISSUE BY PUTTING SAMPLES OF TISSUE IN A SIMULATED CELL GROWTH ENVIRONMENT QUOTE WE FOOL THE CELLS INTO THINKING THEY'RE IN THE BODY QUOTE SAID GAIL K. NAUGHTON EXECUTIVE VICE PRESIDENT IN THE AGREEMENT WITH SAINT JUDE ADVANCED TISSUE HOPES TO CREATE A FULLY HUMAN HEART VALVE USING LIVING CELLS FROM THE LINING OF BLOOD VESSELS CURRENTLY MECHANICAL HEART VALVES REQUIRE PATIENTS TO TAKE ANTICOAGULANTS FOR LIFE A FULLY HUMAN TISSUE HEART VALVE WOULD NOT REQUIRE ANTICOAGULANTS ANDREAS PAPANDREOU GREECE'S SEPTUAGENARIAN PRIME MINISTER HAS A KNACK FOR BEATING THE ODDS HE TWICE WAS IMPRISONED AND EXILED BEFORE SERVING TWO TERMS AS GREECE'S ONLY SOCIALIST PRIME MINISTER SCANDAL RECORD INFLATION AND A MASSIVE BUDGET DEFICIT LED TO A HUMILIATING DEFEAT IN NINETEEN EIGHTY NINE STILL MR. PAPANDREOU BEAT CHARGES THAT HE ACCEPTED BRIBES HE SURVIVED TRIPLE BYPASS HEART SURGERY AND MARRIED A WOMAN HALF HIS AGE LAST FALL HE STAGED A STUNNING POLITICAL COMEBACK THE QUESTION NOW IS CAN MR. PAPANDREOU MANAGE HIS NATION'S TROUBLES AS HANDILY AS HE TRIUMPHED OVER HIS OWN OR MORE BLUNTLY CAN ONE OF EUROPE'S FRAILEST LEADERS NURSE ONE OF THE EUROPEAN UNION'S WEAKEST COUNTRIES BACK TO HEALTH NOT ONLY EUROPEAN AND AMERICAN LEADERS BUT INVESTORS AROUND THE WORLD ARE WATCHING AND WONDERING IF MR. PAPANDREOU AND HIS PANHELLENIC SOCIALIST MOVEMENT OR PASOK UNDO THE PRO BUSINESS PRO PRIVATIZATION PROGRAMS OF THE CONSERVATIVE GOVERNMENT OUSTED LAST OCTOBER IT WILL THWART URGENT ECONOMIC REFORMS BUT PROGRESS REQUIRES SELLING INEFFICIENT STATE OWNED COMPANIES FROM SHIPYARDS AND CASINOS TO THE NATIONAL AIRLINE AND TELEPHONE COMPANY AND RIDDING THEM OF THOUSANDS OF WORKERS MANY OF THEM PASOK SUPPORTERS QUOTE WE HAVE A REALITY WHERE THERE IS VERY LITTLE ROOM FOR ERROR QUOTE ACKNOWLEDGES THEODOROS PANGALOS GREECE'S MINISTER FOR EUROPEAN AFFAIRS A KEY PAPANDREOU ADVISER MOREOVER GREECE'S CONSTANT BICKERING WITH NEIGHBORING MACEDONIA ALBANIA AND ITS LONGTIME ENEMY TURKEY THREATENS TO WIDEN THE TURMOIL IN THE BALKAN REGION MR. PAPANDREOU'S BIGGEST CHALLENGE ISN'T ABROAD HOWEVER BUT AT HOME MR. PAPANDREOU NOW SEVENTY FIVE IS FAR FROM VIGOROUS HE IS NOTHING LIKE THE FIST POUNDING SPEAKER WHO IN THE EARLY NINETEEN EIGHTIES THREATENED TO KICK OUT U. S. MILITARY BASES AND TO WITHDRAW GREECE FROM NATO THE MAN WHO ONCE GAVE TWO HOUR EXTEMPORANEOUS SPEECHES SOUNDS NOW AS THOUGH HE IS ABOUT TO RUN OUT OF BREATH ANY MINUTE HE MADE ONLY THREE SPEECHES DURING THE TWENTY FIVE DAY CAMPAIGN LAST FALL AND SINCE HE TOOK OFFICE HE HAS JOINED DEBATES IN PARLIAMENT ONLY FOUR TIMES THE LAST TIME AFTER RETURNING FROM A NATO SUMMIT IN BRUSSELS AIDES HELD HIS ARMS AS IF TO SUPPORT HIM WHEN HE ENTERED THE CHAMBER HALF THE MINISTERS IN MR. PAPANDREOU'S GOVERNMENT ARE OVER SIXTY YEARS OLD MOST SERVED IN HIS PREVIOUS ADMINISTRATIONS TWO HAVE CANCER BUT NOT ALL HIS STAFF IS OLD IN ONE OF HIS FIRST OFFICIAL ACTS MR. PAPANDREOU NAMED AS HIS APPOINTMENTS SECRETARY HIS SECOND WIFE DIMITRA THIRTY NINE A FORMER OLYMPIC AIRLINE FLIGHT ATTENDANT WITH WHOM HE CONDUCTED A PUBLIC AFFAIR BEFORE DIVORCING HIS WIFE OF THIRTY SIX YEARS AND REMARRYING IN NINETEEN EIGHTY NINE THE NEW MRS. PAPANDREOU HAS CAUSED A STIR IN GREECE'S MALE DOMINATED SOCIETY WITH A STAFF OF TWO HUNDRED SHE STAYS CLEAR OF POLICY MAKING AIDES INSIST BUT SHE OVERSEES HER HUSBAND'S SCHEDULE AND CAN VETO APPOINTMENTS TO SEE HIM THE PRIME MINISTER AND HIS WIFE DECLINED TO BE INTERVIEWED MR. PAPANDREOU'S SUPPORTERS SAY HE IS HEALTHY THEY POINT TO HIS SCHEDULE AT THE TWO DAY BRUSSELS SUMMIT WHERE HE GAVE A KEYNOTE SPEECH HOSTED A WORKING DINNER FOR FOREIGN LEADERS AND MET TWICE WITH PRESIDENT CLINTON I CALL HIM AT ONE A. M. AND HE'S STILL AWAKE SAYS THE PRIME MINISTER'S SON GEORGE PAPANDREOU A DEPUTY FOREIGN MINISTER AND EVEN HIS ADVERSARIES DON'T COUNT HIM OUT HE IS A VERY CLEVER SICK MAN SAYS NIKOLAOS KATSAROS OPPOSITION LEADER IN PARLIAMENT MR. PAPANDREOU'S AIDES INSIST THAT PASOK IS FAR MORE MODERATE NOW CHASTENED BY THE ECONOMIC PROBLEMS THAT OCCURRED DURING ITS REIGN IN THE NINETEEN EIGHTIES THE MAN WHO A DECADE AGO ROAMED GREECE'S COUNTRYSIDE IN SHIRTSLEEVES ADVOCATING PROFIT CEILINGS SOUNDS DOWNRIGHT REAGANITE AT TIMES HE TOLD THE GREEK PARLIAMENT AFTER HIS ELECTION ALL THE COMPLEX AND TIME CONSUMING ADMINISTRATIVE PROCEDURES THAT MAKE LIFE DIFFICULT FOR THE CITIZEN MUST BE SIMPLIFIED THE WORDS COMPETITIVENESS AND PRODUCTIVITY PEPPER HIS PUBLIC STATEMENTS BEING A SOCIALIST DOESN'T MEAN NOT FACING REALITY SAYS MR. PANGALOS THE GOVERNMENT MINISTER ADDS CULTURE MINISTER MELINA MERCOURI QUOTE THIS IS SOCIALISM WITH A NEW FACE QUOTE AND INDEED GREECE IS AN INTRIGUING MARKET FOR FOREIGN INVESTORS THOUGH THE POOREST OF THE TWELVE E. U. COUNTRIES BY SOME MEASURES ITS OFFICIAL AVERAGE INCOME IS ABOUT SEVEN THOUSAND TWO HUNDRED DOLLARS A YEAR IT HAS A LARGE UNDERGROUND ECONOMY ESTIMATED AT FORTY PERCENT OF GROSS DOMESTIC PRODUCT SOME SEVENTY PERCENT OF THE POPULATION OWN THEIR OWN HOME YOU HAVE A WELL EDUCATED POPULATION AND A STRONG PRIVATE SECTOR THE PROBLEM IS THE MAN ON THE STREET SHOWS MORE LEADERSHIP THAN THE MEN IN THE MINISTRIES SAYS PROFESSOR THANOS VEREMIS A GREEK WHO TEACHES EUROPEAN AFFAIRS AT OXFORD UNIVERSITY MANY CRITICS SAY MR. PAPANDREOU'S ACTIONS HAVEN'T CAUGHT UP WITH HIS FREEMARKET RHETORIC AS A RESULT THE INITIAL ECONOMIC PROGRESS MADE BY THE PREVIOUS GOVERNMENT IS ENDANGERED THEY SAY THE STOCK MARKET TOOK OFF IN NINETEEN NINETY WHERE THERE ONCE WERE THREE WOODEN TRADING RIMS ON THE ATHENS STOCK EXCHANGE FLOOR MORE THAN ONE HUNDRED FOURTEEN COMPUTERIZED TERMINALS NOW HANDLE THE TRADING VOLUME BUT GOVERNMENT HAS PUT UNDER REVIEW PLANS TO SELL OFF MORE THAN THREE BILLION DOLLARS IN STATE OWNED ENTERPRISES TO REDUCE THE DEFICIT AND TO BUILD A STATE OF THE ART INTERNATIONAL AIRPORT OUTSIDE ATHENS WITH TWO POINT NINE BILLION DOLLARS IN PRIVATE AND E. U. FUNDS ALREADY INVESTORS ARE NERVOUS MOST WORRISOME TO POTENTIAL INVESTORS IS THE ABOUT FACE ON THE PRIVATIZATION OF HELLENIC TELECOMMUNICATIONS ORGANIZATION THE NATIONAL PHONE COMPANY KNOWN AS OTE NOT ONLY IS IT THE BIGGEST STATE OWNED COMPANY BUT IT IS A SYMBOL OF THE OVERALL PRIVATIZATION PROGRAM THE PREVIOUS GOVERNMENT PLANNED TO SELL A THIRTY FIVE PERCENT STAKE IN THE OTE TO A STRATEGIC INVESTOR THE MOST LIKELY CANDIDATE WAS A FOREIGN TELECOMMUNICATIONS COMPANY THAT WOULD HAVE HELPED TO OVERHAUL AND MANAGE THE SYSTEM NOW PASOK PLANS TO SELL THIRTEEN PERCENT AND PERHAPS EVENTUALLY UP TO THIRTY PERCENT OF THE SHARES IN A PUBLIC OFFERING AS FOR PLANS TO PRIVATIZE GREECE'S POWER PLANTS IT IS NOT IN OUR POLICY NATIONAL ECONOMY MINISTER YIANNIS PAPANTONIOU SAYS FLATLY SMALL BUSINESSES ARE WAITING TO SEE WHAT MR. PAPANDREOU DECIDES IN THE END HARRY G. DAVID WHO OWNS PITTA PAN A FAST FOOD SOUVLAKI RESTAURANT WANTS TO EXPAND HIS BUSINESS INTO A NATIONAL CHAIN BUT HE FEARS PASOK MIGHT INCREASE TAXES OR REINTRODUCE PRICE CONTROLS EACH TIME A NEW GOVERNMENT COMES IN IT DISCREDITS EVERYTHING THE PREVIOUS GOVERNMENT HAS DONE MR. DAVID ADDS IF THERE ARE CONTINUING DOUBTS ABOUT MR. PAPANDREOU'S ECONOMIC AGENDA HE HAS LARGELY DEFUSED WORRIES ABOUT FOREIGN POLICY PASOK DID CAUSE A FLAP BACK IN DECEMBER WHEN MR. PANGALOS CALLED GERMANY QUOTE A GIANT WITH BESTIAL FORCE AND A CHILD'S BRAIN QUOTE AND HAD TO APOLOGIZE BUT DIPLOMATS NOW COMPLIMENT MR. PAPANDREOU FOR HIS HANDLING SO FAR OF THE EUROPEAN UNION'S ROTATING SIX MONTH PRESIDENCY MR. PAPANDREOU ALSO HAS MOVED TO REPAIR RELATIONS WITH THE U. S. HIS MEETING WITH PRESIDENT CLINTON IN BRUSSELS LAST MONTH WAS A SUCCESS THE PRESIDENT TOLD MR. PAPANDREOU HE HAD READ THE PAPERS THE PRIME MINISTER WROTE IN THE NINETEEN SIXTIES AS AN ECONOMICS PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY BANC ONE CORPORATION'S AGREEMENT TO ACQUIRE FIRSTIER FINANCIAL INCORPORATED IN A STOCK TRANSACTION FELL APART LARGELY AS A RESULT OF A SLIDE IN BANC ONE'S STOCK THE AGREEMENT COLLAPSED AFTER BANC ONE TURNED DOWN A REQUEST BY FIRSTIER TO INCREASE ITS BID FIRSTIER THE NUMBER TWO BANK IN NEBRASKA HAD WANTED BANC ONE TO BOOST ITS OFFER TO COMPENSATE FOR ITS DEPRESSED STOCK PRICE BANC ONE'S STOCK HAS FALLEN SINCE IT AGREED LAST APRIL TO A ONE FOR ONE STOCK SWAP WHICH AT THE TIME WOULD HAVE RESULTED IN IT PAYING A VALUE OF SEVEN HUNDRED TWELVE MILLION DOLLARS BASED ON THE APPROXIMATELY SIXTY DOLLARS A SHARE PRICE OF ITS STOCK SINCE THEN BANC ONE HAS HAD A FIVE FOR FOUR STOCK SPLIT AND A TEN PERCENT STOCK DIVIDEND FIRSTIER HAD ASKED BANC ONE TO ADJUST ITS OFFER TO EQUAL THE FORTY FOUR DOLLAR AND EIGHTY SIX CENT A SHARE PRICE ADJUSTED FOR THE STOCK SPLIT AND DIVIDEND OR TOTAL VALUE OF FIVE HUNDRED THIRTY FIVE MILLION DOLLARS AT WHICH IT COULD WALK AWAY FROM THE AGREEMENT THE DECISION TO SCUTTLE THE AGREEMENT WAS ANNOUNCED AFTER THE CLOSE OF TRADING BANC ONE CLOSED AT THIRTY TWO DOLLARS AND TWENTY FIVE CENTS DOWN THIRTY SEVEN POINT FIVE CENTS IN TRADING ON THE NEW YORK STOCK EXCHANGE FIRSTIER CLOSED AT FORTY FIVE DOLLARS AND SEVENTY FIVE CENTS DOWN FIFTY CENTS IN NASDAQ STOCK MARKET TRADING MIKE MAYO AN ANALYST WITH U. B. S. SECURITIES INCORPORATED SAID BANC ONE'S STOCK HAS BEEN HURT MORE THAN MOST BANK STOCKS IN THE PAST YEAR QUOTE DUE TO A BELIEF THAT ITS USE OF DERIVATIVES IS EXCESSIVE AND THAT IT WILL NOT BE ABLE TO GROW THROUGH ACQUISITIONS AT THE SAME PACE AS IT HAS IN THE PAST QUOTE JOHN B. MCCOY CHAIRMAN OF BANC ONE WHICH IS BASED IN COLUMBUS OHIO SAID THE COMPANY DIDN'T WANT TO INCREASE ITS BID FOR FIRSTIER BECAUSE WE HAVE A POLICY OF PROTECTING CURRENT BANC ONE SHAREHOLDERS BY NOT ACCEPTING DILUTION IN AN AFFILIATION TRANSACTION SOME ANALYSTS ALSO SAID THE AGREEMENT'S DEMISE SUGGESTS BANC ONE MIGHT HAVE PROBLEMS ACQUIRING OTHER BANKS GIVEN THE STOCK'S POOR PERFORMANCE ACCORDING TO MR. MAYO OF U. B. S. BANC ONE'S STOCK PRICE HAS SLIPPED NINE PERCENT SINCE DECEMBER THIRTY FIRST WHILE COMPARABLE REGIONAL BANKS SAW THEIR STOCK PRICES REMAIN ESSENTIALLY FLAT HOWEVER MR. MAYO WHO RATES BANC ONE STOCK A BUY SAID I DON'T THINK THIS SOUNDS AN ALARM LONG TERM I EXPECT THE STOCK PRICE TO RECOVER AS BANC ONE CONTINUES TO GENERATE EARNINGS WITH OR WITHOUT ACQUISITIONS THE ACQUISITION WAS TO BE BANC ONE'S FIRST FORAY INTO NEBRASKA AND WAS PART OF THE COMPANY'S EFFORT TO BOLSTER ITS HOLDINGS IN THE MIDWEST BANC ONE HAS SEVENTY NINE POINT NINE BILLION DOLLARS IN ASSETS ONE OF FIRSTIER'S LARGEST OWNERS IS OMAHA FINANCIER WARREN BUFFETT'S BERKSHIRE HATHAWAY INCORPORATED WHICH CONTROLS ABOUT FIVE POINT SIX SIX PERCENT OF COMMON STOCK DAVID A. RISMILLER CHAIRMAN OF OMAHA BASED FIRSTIER SAID WE MUST ENSURE FULL ECONOMIC VALUE FOR OUR SHAREHOLDERS MR. RISMILLER ADDED THAT MANAGEMENT AND THE FIRSTIER FINANCIAL BOARD OF DIRECTORS WILL WORK WITH MORGAN STANLEY AND COMPANY TO ASSESS VARIOUS STRATEGIC ALTERNATIVES FOR ENHANCING SHAREHOLDER VALUE INCLUDING POTENTIAL MERGERS AND ACQUISITIONS BANC ONE'S WITHDRAWAL MEANS ANOTHER BANK MIGHT STEP IN TO ACQUIRE FIRSTIER WHICH HAS THREE POINT ONE BILLION DOLLARS IN ASSETS ANALYSTS MENTIONED NORWEST CORPORATION AS A POSSIBLE BIDDER NOTING THAT IT COULD ACHIEVE COST SAVINGS SINCE IT ALREADY HAS A PRESENCE IN NEBRASKA NORWEST WHICH IS BASED IN MINNEAPOLIS HAD NO COMMENT A STUDY OF RESIDENTIAL SEGREGATION IN THE U. S. REPORTS A QUOTE MODEST QUOTE BUT QUOTE PERVASIVE QUOTE TREND TOWARD INTEGRATION WITH CITIES IN THE SOUTH AND WEST HAVING MORE RACIALLY MIXED COMMUNITIES THAN SOME IN THE NORTHEAST AND MIDWEST WHILE THE RESEARCHERS PREDICT THE CONTINUED DECLINE OF RESIDENTIAL SEGREGATION THEY CONCLUDE WHERE THERE IS A HISTORY OF RACIAL ANTAGONISM A RING OF WHITE SUBURBS SURROUNDING A BLACK CENTRAL CITY AND LITTLE NEW HOUSING CONSTRUCTION SEGREGATION IS LIKELY TO PERSIST DESPITE MORE LIBERAL WHITE ATTITUDES AND GOVERNMENT POLICIES THE STUDY DEALT ONLY WITH BLACK WHITE RESIDENTIAL SEGREGATION IN METROPOLITAN AREAS WITH AT LEAST TWENTY THOUSAND BLACKS OR AREAS WHERE BLACKS WERE AT LEAST THREE PERCENT OF THE POPULATION THE CITIES WERE RANKED ON A SCALE FROM ZERO TO ONE HUNDRED WITH ZERO REPRESENTING TOTAL INTEGRATION AND ONE HUNDRED A CITY THAT WAS EITHER ALL BLACK OR ALL WHITE SEVERAL FACTORS SOCIAL ECONOMIC GEOGRAPHIC AND HISTORICAL CONTRIBUTED TO THE DEGREE TO WHICH A CITY WAS SEGREGATED THE RESEARCHERS SAY WITH A DECREASE IN THE NUMBER OF WHITES WHO SUPPORT SEGREGATED HOUSING PLAYING A MAJOR ROLE IN DETROIT IN NINETEEN SEVENTY FOUR ABOUT FORTY ONE PERCENT OF WHITES SAID THEY WOULD LEAVE A NEIGHBORHOOD THAT WAS ONE THIRD BLACK THE RESEARCHERS SAY IN NINETEEN NINETY TWO ONLY TWENTY NINE PERCENT SAID THEY WOULD LEAVE AMONG THE LEAST SEGREGATED CITIES ARE SOME ADJACENT TO MILITARY BASES WHERE HOUSING WAS ASSIGNED RANDOMLY MR. FARLEY SAYS SIZE AND HEALTHY ECONOMIES ALSO MAKE A DIFFERENCE INTEGRATION OCCURS MORE EASILY IN SMALL TO MIDSIZE COMMUNITIES PLACES WHERE THE INCOME OF BLACKS APPROXIMATED THAT OF WHITES ARE LESS SEGREGATED AND THE PRESENCE OF ASIANS AND HISPANICS MITIGATES DISCRIMINATION AGAINST BLACKS SEGREGATION ALSO SEEMS LOW IN UNIVERSITY TOWNS AND STATE CAPITALS WHERE RESEARCHERS SAY A LINK CAN BE DRAWN BETWEEN MORE TOLERANT ATTITUDES AND MORE EDUCATION GOVERNMENT EMPLOYEES LIVING IN STATE CAPITALS ARE THOUGHT TO BE MORE FAMILIAR WITH AND OBSERVANT OF FAIR HOUSING LAWS COMMUNITIES WITH A LOT OF HOUSING BUILT AFTER PASSAGE OF THE FAIR HOUSING ACT OF NINETEEN SIXTY EIGHT ALSO TEND TO BE MORE OPEN THAN THOSE WITH NEIGHBORHOODS THAT MIGHT HAVE AT ONE TIME BEEN SUBJECT TO RESTRICTIVE WHITES ONLY DEEDS AND FEDERALLY SUPPORTED RED LINING THE STUDY SAID THE RESEARCHERS ALSO FOUND THAT UNLIKE THE NORTHEAST AND MIDWEST WHERE LOCAL TOWNS AND SUBURBS HAD A GREAT DEAL OF AUTONOMY AND USED IT TO EXCLUDE BLACKS POWER IN THE SOUTH WAS VESTED IN COUNTY WIDE GOVERNMENTS SUBJECT TO STATE CONTROL AS A RESULT THEY SAY WHITE FLIGHT SUBURBS DIDN'T SPROUT UP IN THE SOUTH AS THEY DID IN THE NORTH AFTER COURTS ORDERED SCHOOLS DESEGREGATED SOUTHERN WHITES HAD NO PLACE TO FLEE THEY SAID REORGANIZATION SONY CORPORATION'S SONY PICTURES ENTERTAINMENT TELEVISION GROUP REORGANIZED ITS T. V. PRODUCTION OPERATIONS CREATING A NEW UNIT COLUMBIA TRISTAR TELEVISION IT WILL BE HEADED BY JON FELTHEIMER FORTY TWO WHO WAS NAMED PRESIDENT AND ANDREW J. KAPLAN THIRTY THREE SENIOR EXECUTIVE VICE PRESIDENT WHO WAS FORMERLY EXECUTIVE VICE PRESIDENT OF THE S. P. E. TELEVISION GROUP FIVE PREVIOUSLY AUTONOMOUS OPERATIONS WILL BE CONSOLIDATED WITHIN THE NEW UNIT MERV GRIFFIN ENTERPRISES INTERNATIONAL PRODUCTIONS INTERACTIVE TELEVISION OPERATIONS TRISTAR TELEVISION WHICH MR. FELTHEIMER PREVIOUSLY HEADED AND COLUMBIA PICTURES TELEVISION WHOSE PRESIDENT SCOTT SIEGLER IS LEAVING AUSTRALIA'S GOVERNMENT OWNED TELECOMMUNICATIONS CONCERN TELSTRA CORPORATION IS CONSIDERING SCALING BACK ITS COMMITMENT TO PROVIDE LOCAL TELEPHONE SERVICE IN HONG KONG ACCORDING TO A TELSTRA OFFICIAL THE COMPANY IS REVIEWING ITS CURRENT AGREEMENT WITH HUTCHISON WHAMPOA LIMITED THAT CALLS FOR TELSTRA TO TAKE A TWENTY PERCENT STAKE IN A NEW TELEPHONE NETWORK SERVING BUSINESS COMMUNITIES ON HONG KONG ISLAND AND THE KOWLOON PENINSULA THE NETWORK IS EXPECTED TO COST H. K. THREE POINT FIVE BILLION DOLLARS FOUR HUNDRED FIFTY MILLION U. S. DOLLARS TELSTRA AND HUTCHISON ARE NOW QUOTE REFINING QUOTE THEIR ACCORD THE TELSTRA OFFICIAL SAID ADDING THAT QUOTE IT'S TOO EARLY TO SAY WHAT THE OUTCOME WILL BE QUOTE HUTCHISON DECLINED TO COMMENT INDUSTRY EXECUTIVES FAMILIAR WITH THE NEGOTIATIONS SAY TELSTRA MAY DROP ITS EQUITY PARTICIPATION OPTING INSTEAD TO BE A STRATEGIC PARTNER PROVIDING THE EXPERTISE AND TECHNOLOGY BUT NOT THE CASH THE TELSTRA HUTCHISON PARTNERSHIP WAS ONE OF THREE GROUPS CHOSEN LAST YEAR BY THE HONG KONG GOVERNMENT TO PROVIDE LOCAL FIXED LINE TELEPHONE SERVICES AFTER HONG KONG TELECOMMUNICATIONS LIMITED'S EXCLUSIVE FRANCHISE EXPIRES IN JULY NINETEEN NINETY FIVE DUFF AND PHELPS CORPORATION SAID IT PLANS TO SPIN OFF ITS CREDIT RATING OPERATION TO SHAREHOLDERS A MOVE THAT WOULD FREE IT FROM CONFLICT OF INTEREST CONCERNS THAT HAVE RESTRICTED THE PARENT COMPANY FROM MANAGING OPEN END MUTUAL FUNDS ALTHOUGH DUFF AND PHELPS IS BEST KNOWN FOR ITS CREDIT RATING OPERATION THE COMPANY'S LARGEST AND MOST PROFITABLE SEGMENT IS ITS INVESTMENT MANAGEMENT BUSINESS WHICH LAST YEAR GENERATED ABOUT FORTY EIGHT PERCENT OF ITS REVENUE AND MORE THAN HALF ITS EARNINGS THE CREDIT RATING OPERATION PRODUCED ABOUT ONE THIRD OF THE COMPANY'S NINETEEN NINETY THREE REVENUE OF ONE HUNDRED ONE MILLION DOLLARS DUFF AND PHELPS SAID AND AN OFFICIAL SAID THAT ITS OPERATING PROFIT WAS ABOUT PROPORTIONAL THE PARENT HAD NET INCOME FOR THE YEAR OF TWENTY THREE POINT ONE MILLION DOLLARS OR ONE DOLLAR AND THIRTY CENTS A SHARE THE MANAGEMENT BUSINESS OPERATES THREE CLOSED END UTILITY FUNDS AND ALSO MANAGES FUNDS ON BEHALF OF PENSIONS AND OTHER INSTITUTIONAL INVESTORS ASSETS UNDER DISCRETIONARY MANAGEMENT AT THE END OF LAST YEAR TOTALED JUST UNDER TWENTY BILLION DOLLARS COMPARED WITH A YEAR EARLIER SIXTEEN POINT FIVE BILLION DOLLARS A DECADE AGO DUFF AND PHELPS AGREED TO BE ACQUIRED BY THE BANK HOLDING COMPANY THEN KNOWN AS SECURITY PACIFIC CORPORATION BUT THE LOS ANGELES CONCERN CALLED OFF THE DEAL BECAUSE OF RESTRAINTS THE FEDERAL RESERVE BOARD PUT ON THE TRANSACTION THE FED APPROVED THE TRANSACTION BUT CONDITIONED IT ON DUFF AND PHELPS'S NO LONGER ISSUING PUBLIC CREDIT RATINGS CONTENDING SUCH RATING ACTIVITY REPRESENTED A POSSIBLE CONFLICT OF INTEREST WITH CERTAIN BANKING ACTIVITIES FRANCIS E. JEFFRIES DUFF AND PHELPS'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID YESTERDAY IN AN INTERVIEW THAT MUTUAL FUNDS QUOTE HAVE BANKING POWERS FOR THE MANAGEMENT OF MONEY MARKET FUNDS BECAUSE OF THE CHECK WRITING PRIVILEGES IF WE WERE TO SET UP A FAMILY OF OPEN END FUNDS HE SAID WE WOULD WANT A SIMILAR TYPE OF ARRANGEMENT A CLOSED END MUTUAL FUND ISSUES A SET NUMBER OF SHARES UNLIKE AN OPEN END FUND WHICH CREATES AND REDEEMS SHARES IN RESPONSE TO INVESTOR DEMAND THE INVESTMENT MANAGEMENT COMPANY HASN'T BEEN HINDERED IN OPERATING ITS CLOSED END FUNDS OR ITS OTHER CURRENT BUSINESSES HE NOTED BUT ITS FLEXIBILITY HAS BEEN HAMPERED BECAUSE IT CAN'T HAVE BANK POWERS AS LONG AS THE CREDIT RATING BUSINESS IS ATTACHED TO THE COMPANY BUT DUFF AND PHELPS NOTED YESTERDAY IN A NEWS RELEASE THAT AFTER THE SPINOFF IT WOULD BE ABLE TO EXPLORE RELATIONSHIPS WITH BANKS REGARDING THE MANAGEMENT OF MUTUAL FUNDS AND OTHER INVESTMENT PRODUCTS THE COMPANY ALSO SAID IT MIGHT CONSIDER IN THE FUTURE AFFILIATING WITH A BROKER DEALER SAYING IT WOULD HAVE A BENEFICIAL EFFECT ON THE MARKETING AND DISTRIBUTION OF OPEN END FUNDS AND INVESTMENT RESEARCH PRODUCTS SUCH ARRANGEMENTS ARE ALSO SUBJECT TO POTENTIAL CONFLICTS OF INTEREST WITH CREDIT RATING SERVICES HOWEVER MR. JEFFRIES SAID THAT ONCE THE SPINOFF IS COMPLETE THE COMPANY WOULD ALSO BE FREE TO ESTABLISH OURSELF AS BROKER DEALER CONVERSELY HE NOTED THE CREDIT RATING BUSINESS WOULD LIKE TO GET INTO THE AREA OF RATING MUTUAL FUNDS BUT WOULD LIKELY BE CONSTRAINED FROM DOING SO BY CONFLICT OF INTEREST CONCERNS IF IT WERE ASSOCIATED WITH DUFF AND PHELPS AND THE PARENT WAS MANAGING MUTUAL FUNDS BESIDES THE INVESTMENT MANAGEMENT COMPANY THE PLANNED TAX FREE SPINOFF WOULD LEAVE DUFF AND PHELPS WITH AN INVESTMENT RESEARCH OPERATION AND A SERVICE THAT PROVIDES CONSULTING AND VALUATION SERVICES AOKI CORPORATION OF JAPAN SAID IT TENTATIVELY AGREED TO SELL MOST OF ITS WESTIN HOTELS AND RESORTS CHAIN TO A GROUP OF INVESTORS HEADED BY BERNARDO DOMINGUEZ A MEXICAN ENTREPRENEUR FOR SEVEN HUNDRED EIGHT MILLION DOLLARS UNDER A LETTER OF INTENT THE DOMINGUEZ GROUP WILL BUY WESTIN OPERATIONS IN NORTH AMERICA SOUTH AMERICA AND EUROPE THESE INCLUDE FIFTY TWO MANAGED HOTELS TEN OF WHICH ARE MAJORITY OR WHOLLY OWNED BY WESTIN THE SEATTLE BASED CHAIN OPERATES SEVENTY THREE HOTELS IN SIXTEEN COUNTRIES WITH THIRTY SIX THOUSAND EIGHT HUNDRED ROOMS QUOTE THE TRANSACTION WILL INCLUDE A COMBINATION OF MORTGAGE DEBT BANK FINANCING AND MEXICAN EQUITY QUOTE SAID CHINH CHU A VICE PRESIDENT WITH THE BLACKSTONE GROUP WHICH IS REPRESENTING AOKI THE TRANSACTION IS EXPECTED TO BE COMPLETED BY JUNE INVESTMENT BANKERS AT SALOMON BROTHERS REPRESENTING MR. DOMINGUEZ COULDN'T BE REACHED FOR COMMENT MR. DOMINGUEZ EXECUTIVE CHAIRMAN OF D. S. C. S. A. DE C. V. COULDN'T BE REACHED FOR COMMENT D. S. C. S. A. IS A CLOSELY HELD CONSTRUCTION CONCERN BASED IN THE NORTHERN MEXICAN STATE OF CHIHUAHUA WITH INTERESTS IN REAL ESTATE CONSTRUCTION RETAIL AND TOURISM AND OPERATES A CHAIN OF MEXICAN HOTELS THAT OPERATES UNDER THE NAME QUALTON HOTELS MR. DOMINGUEZ IS ALSO INVOLVED WITH THE MEXICAN GOVERNMENT IN A PROPOSED SIX HUNDRED MILLION DOLLARS HOTEL RESTAURANT AND OFFICE DEVELOPMENT IN THE RESORT CITY OF CANCUN WESTIN A HIGHER END FULL SERVICE HOTEL CHAIN HAD BEEN MARKETED AGGRESSIVELY TO PROSPECTIVE BUYERS OVER THE PAST YEAR AND HAD ATTRACTED A HOST OF FINANCIAL AND STRATEGIC BIDDERS INTERESTED IN RESTORING ITS LUSTRE THE DOMINGUEZ OFFER HAD SURFACED LATE IN THE BIDDING PROCESS WHICH IN THE EARLY STAGES HAD ATTRACTED MORE THAN TWENTY INTERESTED PARTIES PEOPLR FAMILIAR WITH THE TALKS SAID PAUL WACHTER MANAGING DIRECTOR FOR WERTHEIM SCHRODER AND COMPANY'S LODGING AND GAMING PRACTICE IN LOS ANGELES SAID THAT ALTHOUGH IT WAS DIFFICULT TO EVALUATE THE DEAL WITHOUT MORE DETAILED INFORMATION THE PURCHASE PRICE SEEMED HIGH ESPECIALLY CONSIDERING THAT MUCH OF THE VALUE IS IN MANAGEMENT CONTRACTS RATHER THAN REAL ESTATE AOKI BOUGHT WESTIN FOR ONE POINT FIVE THREE BILLION DOLLARS IN NINETEEN EIGHTY EIGHT FROM ALLEGIS CORPORATION THEN THE PARENT OF UNITED AIRLINES AOKI AND A GROUP OF INVESTORS THAT INCLUDED BILLIONAIRE INVESTOR ROBERT BASS QUICKLY SOLD THE WESTIN MAUNA KEA IN HAWAII AND THE PLAZA IN NEW YORK FOR ABOUT SEVEN HUNDRED THIRTY FIVE MILLION DOLLARS BUT THE CHAIN HADN'T BEEN AGGRESSIVELY DEVELOPED UNDER AOKI'S OWNERSHIP AND HAS SUFFERED ALONG WITH THE REST OF THE HOTEL INDUSTRY FROM A PROLONGED DOWNTURN AOKI CORPORATION A JAPANESE CONSTRUCTION COMPANY HEADED BY INVESTOR HIROYOSHI AOKI WAS SAID TO BE UNDER PRESSURE FROM ITS BANKERS TO SELL PART OR ALL OF THE CHAIN AOKI CONTINUES TO OWN THE CAESAR PARK HOTEL CHAIN AND OTHER INDEPENDENT HOTELS ROGER CLINE WORLD WIDE DIRECTOR OF HOSPITALITY CONSULTING SERVICES FOR ARTHUR ANDERSEN AND COMPANY SAID THE WESTIN BRAND STILL HAS A GOOD REPUTATION BUT WOULD REQUIRE MORE EXPANSION TO GAIN A PROFILE AS A TRULY NATIONAL BRAND HE NOTED THAT WESTIN MIGHT BENEFIT FROM FURTHER CONSOLIDATION IN THE HOTEL INDUSTRY BY PURCHASING ANOTHER SMALLER CHAIN ECONOMIC REFORMS IN CHINA ARE NOURISHING CHINA'S FLEDGLING HIGH TECHNOLOGY INDUSTRY AND SPAWNING A WAVE OF ENTREPRENEURIAL TALENT UNIVERSITY GRADUATES AND PROFESSORS ARE HATCHING COMPANIES OF THEIR OWN OFTEN IN THE BACK STREETS OF ZHONGGUANCUN AN AREA NEAR BEIJING UNIVERSITY SILICON ALLEYS IN EFFECT IN A RECENT ARTICLE IN CHINA'S OFFICIAL PRESS YANG DAKAN OF THE STATE PLANNING COMMISSION'S ECONOMIC RESEARCH INSTITUTE PREDICTED THAT THE NUMBER OF SELF EMPLOYMENT ENTERPRISES WITH FEWER THAN EIGHT EMPLOYEES WILL SOAR THIS YEAR TO NINETEEN MILLION AND WILL EMPLOY THIRTY TWO MILLION WORKERS UP TWELVE PERCENT FROM NINETEEN NINETY THREE SALES COULD TOP TWENTY THREE BILLION DOLLARS MOST OF CHINA'S COTTAGE INDUSTRIES ARE IN BASIC INDUSTRIES BUT HIGH TECH COMPANIES ARE MULTIPLYING MR. YANG WROTE QUOTE THE BUSINESS HAS MUSHROOMED QUOTE SAYS MICHAEL L. Y. NG DEPUTY GENERAL MANAGER OF LEGEND HOLDINGS LIMITED ONE OF THE MOST SUCCESSFUL COMPUTER COMPANIES OPERATING IN CHINA TODAY LEGEND A SIX YEAR OLD JOINT VENTURE BETWEEN A HONG KONG COMPANY AND ACADEMIA SINICA THE CHINESE ACADEMY OF SCIENCES SELLS ITS OWN BRAND OF COMPUTERS IN CHINA AS WELL AS PRODUCTS FROM A. S. T. RESEARCH INCORPORATED INTERNATIONAL BUSINESS MACHINES CORPORATION APPLE COMPUTER INCORPORATED SUN MICROSYSTEMS INCORPORATED AND INTEL CORPORATION LEGEND'S SALES IN THE YEAR ENDED MARCH THIRTY FIRST NINETEEN NINETY THREE TOTALED ONE POINT EIGHT BILLION HONG KONG DOLLARS TWO HUNDRED THIRTY TWO POINT TWO MILLION DOLLARS PRODUCING A PROFIT OF H. K. TWENTY SIX POINT FOUR MILLION DOLLARS THE COMPANY EXPECTS PROFIT TO MORE THAN DOUBLE IN THE CURRENT YEAR LIKE OTHER UPSTART TECHNOLOGY COMPANIES LEGEND HAS HIRED DOZENS OF HIGHLY TRAINED ALTHOUGH INEXPENSIVE BECAUSE OF CHINA'S LOW WAGE SCALES ENGINEERS TO HELP IT COOK UP NEW APPLICATIONS FOR ITS PRODUCTS IN A MARKETING EFFORT LEGEND STAGES DEMONSTRATIONS AT UNIVERSITIES AND EVEN PRODUCES ACADEMIC PAPERS ON THE CAPABILITIES OF THE MACHINES IT SELLS RIVALS APPARENTLY KNOW THE ROUTINE TOO COMPAQ COMPUTER CORPORATION OF THE U. S. HAS ANTED UP ONE MILLION DOLLARS FOR A RESEARCH CENTER IN BEIJING THE BIGGEST COMPETITIVE CHALLENGE LEGEND FACES IS THE PRESENCE OF STATE OWNED COMPUTER COMPANIES IN PARTICULAR GREAT WALL COMPUTER COMPANY THE BIGGEST MAKER OF OWN BRAND COMPUTERS IN CHINA WHICH LEGEND SAYS WINS MANY ORDERS BECAUSE OF ITS TIES TO THE GOVERNMENT ALTHOUGH CHINA'S ELECTRONICS PRODUCTION EVERYTHING FROM LIGHT BULBS TO STATE MADE MILKY WAY MAINFRAME COMPUTERS LAST YEAR REACHED NEARLY FIFTEEN BILLION DOLLARS THE STATE IS INFUSING ONLY ONE POINT FIVE BILLION DOLLARS IN NEW EQUIPMENT AND RESEARCH DURING THE CURRENT FIVE YEAR PLAN WHICH ENDS IN NINETEEN NINETY FIVE THAT LEAVES A YAWNING CAPITAL GAP AND A MARKET THAT ENTREPRENEURS AND UPSTART HIGH TECH COMPANIES ARE RUSHING TO FILL CHINA'S MARKET FOR PERSONAL COMPUTERS HAS BEEN GROWING AT LEAST TWENTY FIVE PERCENT IN EACH OF THE LAST FIVE YEARS AND THE PACE IS ACCELERATING IN NINETEEN NINETY TWO ABOUT TWO HUNDRED THOUSAND PERSONAL COMPUTERS WERE SOLD IN CHINA IN NINETEEN NINETY THREE ACCORDING TO A PRELIMINARY GOVERNMENT ESTIMATE THE NUMBER WAS THREE HUNDRED FIFTY THOUSAND OFFICIALS EXPECT DEMAND TO REACH AT LEAST ONE MILLION P. C.S BY THE YEAR TWO THOUSAND NOW EVEN MORE POWERFUL COMPUTERS ARE CATCHING ON N. E. C. CORPORATION THE JAPANESE COMPUTER MAKER SAID FEBRUARY TENTH THAT IT'S CONSIDERING PRODUCING SMALL COMPUTER WORKSTATIONS IN CHINA IT HOPES TO CONCLUDE A FEASIBILITY STUDY BY THE END OF THIS YEAR MEANWHILE SMALLER CHINESE COMPANIES ARE CROPPING UP EVERY DAY PROVIDING SPECIALIZED SOFTWARE AND APPLICATIONS SOME SIMPLY DREAM UP SOFTWARE FOR WHAT ENGINEERS HERE DUB HANZIFICATION ENABLING PERSONAL COMPUTERS TO WRITE AND READ CHINESE CHARACTERS OR HANZI WANG YONGMIN A FIFTY FIVE YEAR OLD CHINESE ENTREPRENEUR PIONEERED THE FIELD IN THE NINETEEN EIGHTIES CASIO COMPUTER COMPANY OF JAPAN LAST YEAR SIGNED A PATENT TRANSFER WITH MR. WANG'S COMPANY WANGMA COMPUTERS CORPORATION TO USE HIS HANZIFICATION SYSTEM DIGITAL EQUIPMENT CORPORATION ALSO HAS AN ARRANGEMENT TO USE WANGMA'S SOFTWARE AT RALPH MA'S COMPANY BEIJING SUN STEP ELECTRONICS TECHNOLOGY COMPANY ON THE OUTSKIRTS OF BEIJING THIRTY RECENT UNIVERSITY GRADUATES IN SWEATERS AND JEANS DESIGN PRODUCE AND MARKET COMPUTER ADD ON BOARDS THAT ENHANCE THE QUALITY OF THE GRAPHICS A MONITOR CAN SHOW BIG CLIENTS INCLUDE AIR TRAFFIC CONTROL OFFICES AND COMPUTER AIDED DESIGN OR MAPPING COMPANIES AND IT EXPORTS SOME COMPONENTS SALES LAST YEAR WERE ALMOST THREE MILLION DOLLARS ON THE BACK OF MR. MA'S BUSINESS CARD ARE TWO WORDS BEIJING BASTARDS THAT'S THE TITLE OF A CONTROVERSIAL MOVIE HE IS MARKETING AND A TICKET HE HOPES TO A MULTIMEDIA FUTURE MR. MA WHO ALSO MANAGES CHINA'S HOTTEST ROCK STAR CUI JIAN FIGURES IF HE CAN JUST FIND A WAY TO LINK HIS BUDDING ENTERTAINMENT EMPIRE TO HIS MAIN BUSINESS DESIGNING PERSONAL COMPUTER SOFTWARE AND ENHANCED GRAPHICS BOARDS HIS PROSPECTS ARE LIMITLESS ONE IDEA CREATING SOFTWARE TO FEED MOVIES DIGITALLY TO CABLE T. V. SUBSCRIBERS TOLD THAT HUGE U. S. COMPANIES ARE BATTLING TO DO THE SAME THING MR. MA TAKES A PENSIVE DRAG ON A MARLBORO PAUSES AND SAYS YES WE HAVE HEARD OF THAT WE WANT TO MAKE FULL USE OF THE INDUSTRY TRENDS MR. MA IS FOND OF AMERICAN GLITZ AND THAT'S WHAT SPARKED THE DEVELOPMENT OF HIS ENTERTAINMENT BUSINESS HE'S NOW TRYING TO MARKET THE CRITICALLY ACCLAIMED THOUGH OFFICIALLY CONDEMNED UNDERGROUND FILM BEIJING BASTARDS WHICH MR. MA DESCIBES AS A VERY DRUGGY DEPICTION OF YOUNG REBELLIOUS CHINESE MUSICIANS WE WANT TO BE HUGE ON THE ENTERTAINMENT SIDE AND THEN WE WILL USE THIS TECHNOLOGY TO SELL WHAT CHINA HAS TO THE REST OF THE WORLD MR. MA SAYS ONE OF HIS SOFTWARE ENGINEERS TWENTY SIX YEAR OLD WANG LING IS ENTHUSIASTIC AT THE PROSPECT QUOTE MULTIMEDIA IS VERY POPULAR IN CHINA IT'S TALKED ABOUT EVERYWHERE ARCH PETROLEUM INCORPORATED SAID IT AGREED TO PAY CHEVRON U. S. A. INCORPORATED TWENTY MILLION DOLLARS FOR OIL AND GAS PROPERTIES ARCH BASED IN FORT WORTH TEXAS SAID THE LEA COUNTY NEW MEXICO PROPERTIES INCLUDE INTERESTS IN ABOUT ONE HUNDRED THIRTY PRODUCING OIL AND GAS WELLS WITH AVERAGE DAILY PRODUCTION TOTALING ABOUT NINE HUNDRED BARRELS OF OIL AND SIX POINT FIVE MILLION CUBIC FEET OF NATURAL GAS THE OIL AND NATURAL GAS COMPANY SAID THE CLOSING IS SET FOR MARCH THIRTY FIRST AND ARCH WILL ASSUME OPERATION OF THE PROPERTIES APRIL FIRST CHEVRON U. S. A. IS UNIT OF OIL AND NATURAL GAS CONCERN CHEVRON CORPORATION SAN FRANCISCO IN A STATEMENT LARRY KALAS PRESIDENT OF ARCH SAID THE PROPERTIES REPRESENT A STRATEGIC ADDITION TO ARCH'S STRONG RESERVE BASE IN THE PERMIAN BASIN MR. KALAS ALSO SAID CURRENT PRODUCTION WILL POSITIVELY AFFECT THE COMPANY'S REVENUE CASH FLOW AND EARNINGS CHRYSLER CORPORATION ANNOUNCED A RECALL OF ONE HUNDRED TEN THOUSAND NINETEEN NINETY FOUR DODGE INTREPIDS EAGLE VISIONS AND CHRYSLER CONCORDES NEW YORKERS AND L. H. S.S BECAUSE OF AN ELECTRICAL PROBLEM CHRYSLER IS RECALLING SEDANS BUILT BETWEEN LATE JULY AND EARLY DECEMBER NINETEEN NINETY THREE A TRANSMISSION WIRING FLAW COULD STOP THE VEHICLES FROM STARTING CAUSE LIGHTS TO MALFUNCTION OR CAUSE A SEDAN TO OPERATE ONLY IN SECOND GEAR A SPOKESMAN SAID THE HIGHLAND PARK MICHIGAN AUTO MAKER IS REPAIRING THE PROBLEM BY REROUTING THE WIRES AND PROTECTING THEM FROM A STEERING ROD WHICH BY RUBBING AGAINST THE WIRES CAN SHORT OUT THE SYSTEM TOKYO STOCKS TUMBLED TWO POINT SEVEN PERCENT MONDAY AFTER THE FAILURE OF THE U. S. JAPAN TRADE SUMMIT SENT THE YEN ROCKETING UPWARD AND A FURTHER THREE POINT ONE PERCENT TUESDAY MORNING MANY OTHER ASIAN STOCK MARKETS ALSO SLUMPED ON MONDAY WITH HONG KONG AND TAIPEI EACH PLUNGING FOUR POINT FIVE PERCENT LONDON SHARES FELL BUT ENDED ABOVE THE DAY'S LOWS IN LIFELESS TRADING IN FRANKFURT PRICES ROSE ONE POINT TWO PERCENT ON HOPES FOR A GERMAN INTEREST RATE EASING THIS WEEK WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED SIXTEEN POINT NINE TWO UP ZERO POINT NINE ZERO REFLECTING HIGHER EUROPEAN AND ASIA SLASH PACIFIC MARKETS AND LOWER AMERICAN MARKETS TRUCKING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED TWENTY SIX POINT THREE FIVE UP THREE POINT TWO THREE OR TWO POINT SIX PERCENT WITH TRIMAC OF CANADA POSTING A ONE POINT SIX PERCENT GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT TWO HUNDRED EIGHTEEN POINT NINE ONE DOWN FOUR POINT NINE NINE OR TWO POINT TWO PERCENT WITH DUNLOP OF MALAYSIA SLIDING SEVEN POINT THREE PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH ROSE ONE HUNDRED FORTY NINE POINT THREE TWO POINTS THURSDAY SLUMPED FIVE HUNDRED THIRTY ONE POINT FOUR FIVE MONDAY ITS SECOND BIGGEST FALL THIS YEAR TO NINETEEN THOUSAND FOUR HUNDRED FIFTY NINE POINT TWO FIVE THE MARKET WAS CLOSED FRIDAY FOR A NATIONAL HOLIDAY MONDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT THREE HUNDRED MILLION SHARES DOWN FROM THREE HUNDRED FIFTY NINE POINT FIVE MILLION SHARES IN THE PREVIOUS SESSION DECLINING ISSUES SWAMPED GAINERS NINE HUNDRED THIRTY FOUR TO ONE HUNDRED FIFTY FIVE THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH ROSE TEN POINT ONE TWO POINTS THURSDAY SKIDDED TWENTY SIX POINT ONE SIX OR ONE POINT SIX PERCENT TO ONE THOUSAND FIVE HUNDRED EIGHTY ONE POINT NINE EIGHT AT THE CLOSE OF TRADING TUESDAY MORNING THE AVERAGE HAD PLUMMETED A FURTHER SIX HUNDRED TWELVE POINT OH SEVEN POINTS TO EIGHTEEN THOUSAND EIGHT HUNDRED FORTY SEVEN POINT ONE EIGHT THE YEN'S STEEP GAINS FOLLOWED LAST WEEK'S NEWS THAT THE U. S. AND JAPAN BROKE OFF THEIR SO CALLED FRAMEWORK TALKS TO IMPROVE BILATERAL TRADE LEAVING THE TOKYO MARKET DEEPLY PESSIMISTIC THE YEN WAS DRIVEN UP BY SPECULATION IN THE FOREIGN EXCHANGE MARKET THAT THE CLINTON ADMINISTRATION WILL TRY TO BOOST THE JAPANESE CURRENCY TO MAKE JAPAN'S EXPORTS RELATIVELY MORE EXPENSIVE INVESTORS ON THE STOCK MARKET ALSO WERE WORRIED ABOUT POSSIBLE U. S. TRADE SANCTIONS AGAINST JAPAN WHICH COULD HURT ITS EXPORTERS IN LONDON MONDAY THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED STOCK INDEX DROPPED FIFTEEN POINT FOUR POINTS TO THREE THOUSAND THREE HUNDRED SIXTY THREE POINT FIVE UP FROM THE SESSION'S TROUGH OF THREE THOUSAND THREE HUNDRED FIFTY POINT TWO THE F. T. THIRTY STOCK INDEX DECLINED EIGHT POINT SIX POINTS TO TWO THOUSAND FIVE HUNDRED EIGHTY SIX POINT SEVEN VOLUME WAS SIX HUNDRED SIXTEEN POINT NINE MILLION SHARES COMPARED WITH ONE BILLION SHARES IN THE PREVIOUS SESSION THE MARKET WAS STAGNANT FOLLOWING LAST WEEK'S VOLATILITY WHICH LEFT INVESTORS WARY THE EXCHANGE ALSO WAS ON HOLD PENDING THIS WEEK'S RELEASE OF SEVERAL REPORTS ON BRITAIN'S ECONOMY WHICH WILL PROVIDE A CLEARER PICTURE FOR MAKING DECISIONS ON STOCKS LOSSES IN TOKYO AND OTHER ASIAN BOURSES ALSO PRESSURED THE LONDON MARKET MINDFUL OF BRITISH CORPORATE EARNINGS REPORTS TO START IN A FEW WEEKS IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX CLIMBED TWENTY FIVE POINT FOUR OH POINTS TO TWO THOUSAND ONE HUNDRED SIXTEEN POINT OH ONE THOUGH DEALINGS WERE QUIET THE INDEX LAST WEEK LOST A TOTAL OF TWENTY EIGHT POINT THREE FIVE POINTS INVESTORS' HOPES SWELLED FOR A REDUCTION IN KEY INTEREST RATES WHEN THE GERMAN BUNDESBANK'S POLICYSETTING CENTRAL BANK COUNCIL MEETS THURSDAY THE CENTRAL BANK LAST CUT RATES OCTOBER TWENTY FIRST THE HOPES WERE RAISED BY POOR UNEMPLOYMENT DATA AND RELATIVELY GOOD INFLATION FIGURES FOR GERMANY THE MARKET WASN'T MUCH AFFECTED BY THE BREAKDOWN OF CONTRACT NEGOTIATIONS LATE FRIDAY BETWEEN INDUSTRIAL EMPLOYERS AND THE METAL WORKERS UNION IN PARIS THE MARKET SANK ONE POINT FOUR PERCENT IN THIN TRADING MARKED BY AN ABSENCE OF NEWS TO STIR INVESTORS WHO ALSO WERE DETERRED BY AN UNUSUAL COLD SPELL AND SNOWFALL IN THE FRENCH CAPITAL DESPITE THE MAIN INDEX'S SHARP DECLINE SELLING WASN'T HEAVY THOUGH THE MARKET HAD NAGGING DOUBTS ABOUT WHETHER GERMANY WILL LOWER RATES THIS WEEK IN AMSTERDAM SHARES ENDED BROADLY LOWER DRIVEN DOWN BY PROFIT TAKING AMID LACKLUSTER TURNOVER OTHER MARKETS' DECLINES AND A SLIGHTLY LOWER DOLLAR IN FOREIGN EXCHANGE DEALINGS PRESSURED STOCKS AND THINNED ACTIVITY IN MILAN PROFIT TAKING PULLED SHARE PRICES DOWN ON THE FIRST DAY OF THE MARCH TRADING ACCOUNT AND THE INDEX THAT INCLUDES ISSUES TRADED ELECTRONICALLY LOST ONE POINT ONE PERCENT IN WHAT WAS TERMED A HEALTHY CORRECTION IN MADRID STOCKS SLUMPED BECAUSE OF A GLOOMY ECONOMIC OUTLOOK FOR SPAIN BASED ON DATA SHOWING RISING UNEMPLOYMENT WORSE THAN EXPECTED JANUARY INFLATION AND LITTLE LIKELIHOOD FOR SPANISH RATE REDUCTIONS SOON IN STOCKHOLM SHARES ADVANCED BUT CLOSED BELOW THE DAY'S HIGHS AS THE MARKET LOST STEAM PARTLY BECAUSE OF THE ABSENCE OF FOREIGN BUYERS THE GAINS CAME ON CORPORATE NEWS AND DECLINING SWEDISH LENDING RATES IN ZURICH STOCKS SANK ONE POINT THREE PERCENT BUT DEALINGS WERE EXTREMELY QUIET IN THE ABSENCE OF FRESH NEWS IN HONG KONG DASHING HOPES FOR THE TRADITIONAL RALLY FOLLOWING THE CHINESE NEW YEAR CELEBRATIONS THE HANG SENG INDEX PLUMMETED FIVE HUNDRED FIFTEEN POINT TWO TWO POINTS THE FIFTH BIGGEST DROP EVER IN TERMS OF POINTS TO TEN THOUSAND NINE HUNDRED EIGHTY EIGHT POINT EIGHT ONE STOCKS OPENED LOWER BECAUSE OF WEAKNESS IN OTHER MARKETS DURING THE HONG KONG BOURSE'S HOLIDAY BREAK AND LOSSES CONTINUED THROUGHOUT THE SESSION LED BY HANG SENG FUTURES CONTRACTS FOREIGN INVESTORS CONTINUED THEIR RECENT PATTERN OF SELLING BUT LOCAL RETAIL BUYERS DIDN'T APPEAR AS A BUFFER INCLUDING MONDAY'S DROP THREE OF THE BLUE CHIP INDEX'S FOUR BIGGEST DECLINES OCCURRED THIS YEAR BUT IN PERCENTAGE TERMS MONDAY'S LOSS DIDN'T APPROACH SEVERAL DOUBLE DIGIT PLUNGES IN THE PAST TWO DECADES IN SYDNEY THE BENCHMARK INDEX SLIPPED AND SHARE PRICES MOSTLY LOST GROUND BUT ENDED UP FROM THEIR LOWS FOR THE SESSION THE FINISH CONTINUED THE TREND FROM LAST WEEK WHEN THE MARKET FELL THREE POINT NINE PERCENT STOCKS OPENED WEAKER ON EXPECTATIONS OF SELL OFFS IN TOKYO AND HONG KONG THOSE DOWNTURNS WEREN'T AS LARGE AS EXPECTED BUT SYDNEY INVESTORS ALSO WERE CONCERNED ABOUT A TRADE IMPASSE BETWEEN JAPAN AND THE U. S. IN SINGAPORE SHARES ENDED SOLIDLY LOWER IN QUIET DEALINGS AS SENTIMENT WAS SUBDUED FOLLOWING A FOUR DAY BREAK TO CELEBRATE THE LUNAR NEW YEAR IN KUALA LUMPUR WHICH ALSO HAD A LONG HOLIDAY CLOSING THE MARKET LOST ONE POINT FOUR PERCENT IN MODERATE TRADING PRICES OPENED HIGHER BUT QUICKLY SOFTENED BECAUSE OF PROFIT TAKING IN TAIPEI THE FOUR POINT FIVE PERCENT LOSS WAS BROADLY BASED AND ATTRIBUTED TO WEAK BUYING INTEREST LINKED PARTLY TO THE TAIWAN CENTRAL BANK'S TIGHT MONETARY POLICY AND TO MARGIN LENDERS FOR BUYING STOCKS ON CREDIT BEING AT THEIR MAXIMUM LOAN LIMITS THE FINANCE SECTOR LED THE LOSERS PLUNGING SIX POINT THREE PERCENT IN SEOUL PRICES TUMBLED ONE POINT SEVEN PERCENT IN LIGHT TURNOVER CONTINUING LAST WEEK'S CORRECTION TRIGGERED BY THE THIRD ROUND OF MARKETCOOLING MEASURES BY THE SOUTH KOREAN GOVERNMENT LOSSES WERE SPREAD ACROSS THE BOARD IN MANILA SHARES SKIDDED ONE POINT ONE PERCENT IN MODERATE DEALINGS HURT BY PROFIT TAKING IN WELLINGTON LACK OF OVERSEAS BUYING AND SOME PROFIT TAKING PUSHED THE STOCK MARKET LOWER IN LATE TRADING AND THE MAIN INDEX SANK ONE POINT THREE PERCENT 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END STANDARD AND POOR'S CORPORATION LOWERED ITS RATINGS ON ABOUT TWO HUNDRED TWENTY MILLION DOLLARS OF THE DEBT OF THIS MAKER OF AUTOMOTIVE AEROSPACE MATERIALS HANDLING AND PACKAGING PRODUCTS THE RATINGS CONCERN SAID IT LOWERED THE COMPANY'S SUBORDINATED DEBT TO TRIPLE C. PLUS FROM SINGLE B. MINUS AND ALSO REMOVED THE RATING FROM CREDITWATCH S. AND P. SAID THE DOWNGRADE REFLECTS INTERLAKE'S QUOTE WEAKENED FINANCIAL PROFILE QUOTE ALTHOUGH THE COMPANY RECENTLY NEGOTIATED RELAXED COVENANTS ON ITS BANK CREDIT FACILITY TO PREVENT A POTENTIAL DEFAULT S. AND P. SAID AN ONEROUS DEBT BURDEN AND WEAK OPERATING PERFORMANCE PLACE THE FIRM UNDER CONTINUED FINANCIAL STRESS S. AND P. SAID THAT WHILE PROSPECTS IN DOMESTIC MARKETS ARE STRENGTHENING WEAK FOREIGN MARKET CONDITIONS WILL LIMIT THE IMPROVEMENT IN EARNINGS AND CASH FLOW FURTHER IT SAID THE COMPANY'S RATINGS OUTLOOK IS NEGATIVE AND COULD BE LOWERED IF THE COMPANY FAILS TO TAKE SUFFICIENT STEPS TO RELIEVE FINANCIAL STRESS OR IF OPERATIONS FAIL TO SHOW SIGNIFICANT IMPROVEMENT OVER THE NEXT FEW QUARTERS INTERLAKE HAD NO COMMENT ON THE ACTION IN AN OPINION FOR A UNANIMOUS COURT CHIEF JUSTICE WILLIAM REHNQUIST LAST WEEK HELD IN NOW V. SCHEIDLER THAT THE SANCTIONS OF THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT KNOWN AS RICO CAN BE APPLIED AGAINST ANTIABORTION PROTESTERS IN SCHEIDLER THE NATIONAL ORGANIZATION FOR WOMEN AND ABORTION CLINICS SUED THE PRO LIFE ACTION NETWORK AND SEVERAL INDIVIDUALS ALLEGING THAT PRO LIFE DEMONSTRATORS HAD VIOLATED FEDERAL AND STATE LAW IN THEIR ATTEMPTS TO CLOSE DOWN THE CLINICS THE RICO CLAIM ALLEGED THAT THE DEFENDANTS COMMITTED TWO OR MORE ACTS OF INTERSTATE EXTORTION BY USING QUOTE FORCE VIOLENCE OR FEAR QUOTE TO INDUCE THE CLINICS TO GIVE UP THEIR RIGHT TO OPERATE THE DEFENDANTS ARGUED THAT RICO SHOULD NOT APPLY TO AN ESSENTIALLY POLITICAL STRUGGLE BUT SHOULD BE LIMITED TO CRIMES WITH A PROFIT GENERATING MOTIVE THE COURT HELD HOWEVER THAT THERE IS NO RICO REQUIREMENT OF ECONOMIC MOTIVE AS A MATTER OF SIMPLE STATUTORY INTERPRETATION THE OPINION WAS OVERLY BROAD THE COURT HAD PREVIOUSLY HELD IN NINETEEN SIXTY ONE AND NINETEEN SIXTY FIVE THAT THE SHERMAN ANTITRUST ACT DOES NOT APPLY TO EFFORTS TO CHANGE LAW EVEN IF DONE BY CONSPIRACY AND WITH AN ANTICOMPETITIVE MOTIVE A SIMILAR APPROACH SHOULD HAVE BEEN USED TO LIMIT RICO IN THIS CASE BUT THE MOST SERIOUS FAILURE IN THE OPINION WAS THE JUSTICES' INABILITY TO APPRECIATE THE POSITIVE ROLE THAT ILLEGAL BUT ESSENTIALLY PEACEFUL PROTEST HAS PLAYED IN AMERICAN HISTORY IMPLICIT IN THE LEAD OPINION BUT MADE QUITE EXPLICIT IN THE CONCURRENCE BY JUSTICES DAVID SOUTER AND ANTHONY KENNEDY IS THE VIEW THAT SOCIAL PROTEST CAN BE DIVIDED INTO TWO TYPES THAT PROTECTED BY THE FIRST AMENDMENT WHICH CANNOT BE MADE ILLEGAL AT ALL AND THAT NOT PROTECTED BY THE FIRST AMENDMENT WHICH CAN BE PUNISHED QUITE SEVERELY A MOMENT'S REFLECTION SHOWS THAT IN FACT SOCIAL PROTEST HAS NEVER LIMITED ITSELF TO LEGAL FORMS IN THE EARLY TWENTIETH CENTURY LABOR UNIONS OCCUPIED FACTORIES AND REFUSED TO MOVE AT AROUND THE SAME TIME WOMEN'S RIGHTS ADVOCATES CHAINED THEMSELVES TO FENCES AT THE WHITE HOUSE LATER CIVIL RIGHTS AND STUDENT PROTESTERS ROUTINELY INVADED BUSINESS AND SCHOOL PREMISES IN MASSIVE SIT INS AND TODAY A WIDE VARIETY OF PROTESTERS ROUTINELY CLIMB FENCES AND BREAK DOWN DOORS TO TRY TO STOP POWER PLANTS INCINERATORS AND SO FORTH NONE OF THESE ACTIVITIES HAVE EVER BEEN PROTECTED BY THE FIRST AMENDMENT OBVIOUSLY NO SOCIETY COULD TOLERATE UNRESTRICTED FORCEFUL ENTRY AND TRESPASS BUT JUST AS OBVIOUSLY THESE ILLEGAL BUT ESSENTIALLY PEACEFUL FORMS OF PROTEST HAVE SERVED A VERY IMPORTANT ROLE IN U. S. HISTORY BY DRAMATIZING OPPOSITION TO THE STATUS QUO ILLEGAL PROTEST HAS ALSO CHANNELED ALIENATED COMMUNITIES AWAY FROM VIOLENCE AND INTO THE STYLIZED ACTIONS OF CIVIL DISOBEDIENCE AND THE SIT IN THESE FORMS OF ILLEGAL PROTESTS HAVE BEEN MANAGED BY AN UNSTATED BUT CLEAR SOCIAL CONVENTION THAT THE CRIMES COMMITTED ARE NOT THAT SERIOUS IN PRACTICE THE PROTESTERS ARE FORCIBLY REMOVED SPEND SOME TIME IN JAIL AND THE CHARGES ARE IN MOST CASES LATER DROPPED IF THE PROTESTS CONTINUE ACTUAL JAIL SENTENCES ARE SERVED BUT THESE SENTENCES USUALLY AMOUNT TO ONLY A FEW DAYS PROSECUTORS AND STATE JUDGES UNDERSTAND THAT THEIR ROLE IS TO MINIMIZE AND CONTROL THE DISRUPTIONS NOT TO END THE PROTESTS AND NOT TO DESTROY THE PROTESTING ORGANIZATION THE COURT'S SCHEIDLER DECISION PUTS AN END TO THIS ACCOMMODATION UNDER THE COURT'S OPINION TWO ACTS OF FORCEFUL ENTRY INTENDED TO INTERFERE WITH THE RIGHTS OF BUSINESS CAN BE CONSIDERED EXTORTION FOR PURPOSES OF THE RICO ACT EVEN IF THE CONTEXT IS OBVIOUSLY ONE OF POLITICAL STRUGGLE RATHER THAN ECONOMICALLY MOTIVATED CRIMINAL ACTIVITY THUS IF ABORTION DEMONSTRATORS TWICE PUSH THEIR WAY INTO A CLINIC'S WAITING ROOM OCCUPY IT BLOCK THE HALLWAYS AND REFUSE TO MOVE THE DEMONSTRATORS ARE ALL SUBJECT TO RICO THEY MAY BE JAILED FOR UP TO TWENTY YEARS THEY CAN BE MADE TO PAY TREBLE DAMAGES AND SLASH OR PUNITIVE DAMAGES THE ORGANIZATION THAT SPONSORED THEM AND ANYONE WHO ENCOURAGED THEM ARE SUBJECT TO THE SAME SEVERE PENALTIES IT IS CLEAR THAT UNDER THESE CIRCUMSTANCES ONLY THE HARDIEST SOULS WILL ENGAGE IN SIT INS ORGANIZATIONS LIKE GREENPEACE THAT ROUTINELY ENGAGE IN SUCH ACTIVITY ARE NO DOUBT SERIOUSLY RECONSIDERING THEIR TACTICS IT IS TRUE THAT EVEN UNDER THE SCHEIDLER OPINION THE PROTESTER WILL EVENTUALLY BE ABLE TO ARGUE TO A CIVIL OR CRIMINAL JURY THAT THE PROTEST ACTIVITY DID NOT AMOUNT TO EXTORTION BECAUSE THERE WAS INSUFFICIENT FORCE OR BECAUSE OTHERS PRESENT AT THE PROTEST WERE NOT REASONABLY PUT IN FEAR BY THE PROTEST SOMETIMES THEY WILL WIN SUCH ARGUMENTS BUT THE PROTECTION OF THE JURY THOUGH IMPORTANT DOES NOT LESSEN SCHEIDLER'S THREAT TO THE SIT IN IF THE REALISTIC POTENTIAL PUNISHMENT FOR A SIT IN IS A DAY OR TWO IN JAIL MANY PEOPLE WILL ENGAGE IN THE PRACTICE IF THE STAKES ARE INSTEAD A JURY TRIAL A SUBSTANTIAL FINE TWENTY YEARS IN JAIL AND CIVIL DAMAGES FEW PEOPLE WILL SIT IN IT IS ALSO TRUE THAT CONCURRING JUSTICES SOUTER AND KENNEDY ARE AWARE THAT THE SCHEIDLER DECISION THREATENS SOCIAL PROTEST JUSTICE SOUTER INVOKED A NINETEEN EIGHTY TWO CASE N. DOUBLE A. C. P. V. CLAIBORNE HARDWARE COMPANY TO REMIND LOWER COURT JUDGES TO BE SENSITIVE TO FREE SPEECH VALUES IN TRYING RICO CASES CLAIBORNE HELD THAT THE N. DOUBLE A. C. P. COULD NOT BE LIABLE FOR ORGANIZING A CIVIL RIGHTS BOYCOTT OF LOCAL BUSINESSES EVEN THOUGH BOYCOTTS BY ECONOMIC COMPETITORS ARE ACTIONABLE UNFORTUNATELY AS JUSTICE SOUTER NOTES CASES LIKE CLAIBORNE PROTECT SOCIAL PROTEST ONLY TO THE EXTENT THAT THE ACTIONS TAKEN TURN OUT TO BE FULLY PROTECTED FIRST AMENDMENT ACTIVITY THE SIT IN IS NOT PROTECTED BY THE FIRST AMENDMENT NOR SHOULD IT BE PEOPLE CANNOT BE ALLOWED FREELY TO INVADE THE PROPERTY OF OTHERS THAT DOES NOT MEAN HOWEVER THAT WE SHOULD TRY TO STAMP OUT SIT INS COMPLETELY THE SIT IN SHOULD BE DISCOURAGED BY THE LAW OF TRESPASS IT SHOULD NOT BE SUBJECT TO FELONY AND TREBLE DAMAGE TREATMENT AS RICO WOULD ALLOW NO DOUBT THERE ARE MANY WHO APPLAUD THE COURT'S DECISION IN SCHEIDLER SOME DO SO BECAUSE THEY SUPPORT ABORTION RIGHTS AND CONSIDER ANTIABORTION PROTESTERS TO BE TERRORISTS SOME DO SO BECAUSE THEY SUPPORT PROPERTY RIGHTS AND SEE NO REASON WHY THE LAW SHOULD EVER BE VIOLATED THESE VIEWS ARE SHORT SIGHTED RICO WAS NEVER NEEDED TO COMBAT TRULY VIOLENT PROTEST MURDER ASSAULT AND ARSON ALREADY CARRY SEVERE STATE AND FEDERAL PENALTIES RICO LAWSUITS WILL NOT BE AIMED AT THEM RATHER THEY WILL BE AIMED AT ILLEGAL BUT ESSENTIALLY PEACEFUL PROTEST FIRST ABORTION CLINICS WILL USE RICO TO DEFEND THEMSELVES AGAINST PROTEST EVENTUALLY POWERFUL ECONOMIC INTERESTS MAY DO SO PROTEST WILL NOT END BUT IT WILL BECOME LESS OPEN AND MORE SECRETIVE LESS PEACEFUL AND MORE VIOLENT LESS HOPEFUL AND MORE BITTER MR. LEDEWITZ IS A PROFESSOR OF LAW AT DUQUESNE UNIVERSITY IN PITTSBURGH IT'S FEEDING TIME AT THE IOWA TROUGH AGAIN THE ISSUE IS PUBLIC SUBSIDY FOR CORPORATE DEVELOPMENT AND THIS TIME BIG LABOR HAS IT RIGHT AND THE PRO BUSINESS REPUBLICAN GOVERNOR HAS IT WRONG IOWA GOVERNOR TERRY BRANSTAD WANTS TO OFFER ABOUT SEVENTY THREE MILLION DOLLARS IN SUBSIDIES TO LURE IPSCO A CANADIAN STEELMAKER TO LOCATE A PLANT NEAR THE MISSISSIPPI RIVER TOWN OF MONTPELIER WITH THREE HUNDRED JOBS INITIALLY PLEDGED THAT WOULD AMOUNT TO ABOUT TWO HUNDRED FORTY THREE THOUSAND DOLLARS IN SPECIAL TAX BREAKS AND GRANTS FOR EACH OF THE WORKERS THIS WOULDN'T SET THE RECORD KENTUCKY HOLDS THAT AT THREE HUNDRED FIFTY THOUSAND DOLLARS A POP ALSO FOR A MINIMILL RUN BY ANOTHER CANADIAN STEELMAKER BUT IOWA IS NO PIKER IN THE STATES' BIDDING WAR FOR DESIRED BUSINESSES AND IPSCO THINKS IT CAN GET ITS PRICE FROM SOMEONE SO IT'S TOLD THE IOWA LEGISLATURE TO GET A MOVE ON APPROVING THE DEAL THE IOWA FEDERATION OF LABOR SAYS STOP PRESIDENT JAMES WENGERT OBJECTS TO FAVORING SELECT COMPANIES WITH QUOTE CORPORATE WELFARE QUOTE AT THE EXPENSE OF OTHER POTENTIAL USES FOR THE TAX MONEY ONE SUCH USE WE'D SUGGEST COULD BE GENERAL TAX RELIEF SUCH AS A REDUCTION IN THE PROPERTY LEVY ON EXPENSIVE MACHINERY THAT VEXES THE IPSCO FOLKS AND NO DOUBT MANY OTHER BUSINESSES MR. WENGERT SAYS LABOR IS OPPOSED EVEN THOUGH HE EXPECTS AN IPSCO FACILITY TO BE UNIONIZED AS ITS CANADIAN PLANTS ARE AN EXISTING UNION STEELMAKER IN THE AREA CONTENDS IT COULD BE PLACED AT A DISADVANTAGE INDEED AS TOM VILSACK A DOWNRIVER DEMOCRATIC STATE SENATOR OBSERVES YOU'RE ACTUALLY PICKING AND CHOOSING BUSINESSES SEVERAL DEMOCRATS IN IOWA AT LEAST DON'T THINK THAT'S A PROPER ROLE FOR GOVERNMENT THEY OUGHT TO SEND THAT MESSAGE TO THE WHITE HOUSE THE HANDOUT GAME WHETHER IT INVOLVES STEEL MILLS OR BASEBALL TEAMS OR HIGH TECH R. AND D. STOPS WHEN POLITICIANS FATHOM OR ARE MADE TO LEARN THAT IT DOESN'T PAY OFF IN MOST CASES AND IT ISN'T THEIR ROLE IN LIFE TO BESTOW THESE FAVORS ANYWAY THEY OUGHT TO ATTEND TO COMPETITIVENESS BY MAXIMIZING THE APPEAL OF THEIR JURISDICTION TO EVERY KIND OF ENTERPRISE NOT JUST THOSE WITH A BIG SNOUT IN THE SPIRIT OF TAPPING JOSEPH KENNEDY TO OVERHAUL THE SECURITIES AND EXCHANGE COMMISSION SIXTY YEARS AGO WHO BETTER TO PRESCRIBE CHANGES FOR THE TROUBLED INSTITUTION OF CONGRESS THAN TONY COELHO THE FIFTY ONE YEAR OLD MR. COELHO AFTER A METEORIC RISE RESIGNED AS HOUSE DEMOCRATIC WHIP IN NINETEEN EIGHTY NINE UNDER A CLOUD OF ETHICAL SUSPICION HE HAS GONE ON TO ACHIEVE STUNNING SUCCESS WITH WERTHEIM SCHRODER AND COMPANY A WALL STREET INVESTMENT FIRM IN THE PROCESS HE WAS CLEARED OF ANY LEGAL WRONGDOING HE STILL POSSESSES ENORMOUS AFFECTION FOR CONGRESS BUT BRINGS A PERSPECTIVE THAT COMES ONLY FROM DISTANCE SITTING IN ONE OF HIS OFFICES LATE LAST WEEK SURROUNDED BY PICTURES AND MEMORABILIA OF HIS EARLIER LIFE THE FORMER CALIFORNIA DEMOCRATIC LAWMAKER ZEROS IN ON WHAT'S WRONG QUOTE CONGRESS HAS BECOME STAGNANT IT HASN'T GROWN WITH THE CHANGES THAT HAVE OCCURRED IN SOCIETY THEY HAVE CREATED MORE POWER CENTERS AND WITH THEM MORE OPPORTUNITIES FOR GRIDLOCK THESE ARE NOT ONLY LEGISLATIVE CENTERS BUT YOU THEN GET THE LAW FIRMS THE LOBBYISTS AND ALL THE INDUSTRIES THAT THEN FIT IN WITH THEM JUST AS JOE KENNEDY WAS ABLE TO MANIPULATE FINANCIAL MARKETS IN THE NINETEEN TWENTIES TONY COELHO WAS ABLE TO MANIPULATE THIS SYSTEM IN THE NINETEEN EIGHTIES HE UNDERSTOOD THESE POWER CENTERS AND HOW THEY THRIVED ON WHAT THE LATE CALIFORNIA POLITICIAN JESSE UNRUH CALLED THE MOTHER'S MILK OF POLITICS MONEY OR CAMPAIGN CONTRIBUTIONS HERE'S HOW TONY COELHO WOULD CHANGE THE SYSTEM HE KNOWS SO WELL LIMIT SERVICE ON CONGRESSIONAL COMMITTEES RATHER THAN IMPOSE TERM LIMITS FOR OFFICE A CONSTITUENCY HAS A RIGHT TO ELECT THEIR REPRESENTATIVE FOR AS LONG AS THEY WANT SAYS MR. COELHO WHO SERVED FOR ELEVEN YEARS AND HAS EXTOLLED THE VIRTUES OF CHANGE AND TURNOVER TO OLD CONGRESSIONAL FRIENDS BUT CONGRESSIONAL TERM LIMITS WOULD ELIMINATE MUCH OF THE KNOWLEDGE AND EXPERIENCE IN CONGRESS AND IN EFFECT TURN OVER POWER TO STAFF TO LOBBYISTS AND TO THE PRESS I DON'T THINK THAT'S WHERE THE POWER SHOULD BE THE UNDERLYING CASE FOR TERM LIMITS THAT CONGRESS IS DOMINATED BY LONG SERVING PROFESSIONAL POLITICIANS IS ERODING CHARLES COOK THE BEST INDEPENDENT ELECTION ANALYST NOW CALCULATES THAT IN THE NEXT CONGRESS AT LEAST TWO HUNDRED TWENTY FIVE TO TWO HUNDRED THIRTY REPRESENTATIVES OR OVER HALF THE HOUSE WILL HAVE BEEN ELECTED IN THE NINETEEN NINETIES INSTEAD MR. COELHO WANTS TERM LIMITS FOR COMMITTEE SERVICE SIX YEARS ON A SUBCOMMITTEE AND EIGHT YEARS ON A FULL COMMITTEE THEN LAWMAKERS WOULD HAVE TO ROTATE COMMITTEE ASSIGNMENTS WHEN INDIVIDUALS HAVE BEEN SUBCOMMITTEE OR COMMITTEE CHAIRMEN FOR TOO LONG THEY ARE NOT AS RECEPTIVE TO NEW IDEAS NEW CHALLENGES A SAM NUNN OR A DAN ROSTENKOWSKI HOWEVER WOULD RETAIN EXPERTISE FROM HIS PREVIOUS COMMITTEES QUOTE YOU PROBABLY WOULDN'T SEE AS MANY PEOPLE STAYING AS LONG BUT YOU STILL WOULD RETAIN A LOT OF THE KNOWLEDGE AND EXPERIENCE AND IT WOULD MAKE FOR MUCH MORE INTERESTING FLOOR DELIBERATIONS QUOTE MR. COELHO NOTES AUTOMATICALLY REORGANIZE CONGRESS EVERY DECADE AN OFT REPEATED MYTH IS THAT CONGRESSIONAL STAFFS AND SUBCOMMITTEES HAVE BEEN MUSHROOMING YET AS LAST YEAR'S EXCELLENT STUDY OF CONGRESS BY THE AMERICAN ENTERPRISE INSTITUTE AND BROOKINGS INSTITUTION REPORTED CONGRESSIONAL STAFFING HAS BEEN LEVEL FOR MORE THAN A DECADE AND THE NUMBER OF SUBCOMMITTEES IS DECLINING SUBCOMMITTEES DID PROLIFERATE AFTER WORLD WAR TWO REACHING A PEAK IN BOTH BODIES IN NINETEEN SEVENTY FIVE ONE HUNDRED FIFTY ONE IN THE HOUSE AND ONE HUNDRED FORTY IN THE SENATE BUT THEY HAVE DROPPED TODAY TO ONE HUNDRED FIFTEEN IN THE HOUSE AND EIGHTY SIX IN THE SENATE TONY COELHO SAYS THE SYSTEM STILL IS OUT OF KILTER STAFF AND SUBCOMMITTEES COULD BE CUT SOME MORE HE BELIEVES AND THERE'S AN OBVIOUS NEED FOR REARRANGING LEGISLATIVE RESPONSIBILITIES HERE MR. COELHO SHIES AWAY FROM SPECIFICS BUT SOME ARE APPARENT PANELS LIKE THE HOUSE ADMINISTRATION COMMITTEE AND THE SENATE SELECT COMMITTEES OUGHT TO BE ELIMINATED AND IT'S CLEAR THAT THE HOUSE WAYS AND MEANS AND SENATE FINANCE COMMITTEES HAVE TOO WIDE A JURISDICTION MOST CONGRESSIONAL CHANGES ARE DONE ON AN AD HOC BASIS SO THE FORMER HOUSE DEMOCRATIC WHIP WANTS AN AUTOMATIC REORGANIZATION AT LEAST EVERY TEN YEARS DIRECTED BY THE DEMOCRATIC AND REPUBLICAN LEADERS OF BOTH HOUSES COMBINED WITH TERM LIMITS FOR COMMITTEES THAT SHOULD HELP REDUCE BOTH THE SPECIAL INTEREST DRIVEN PARALYSIS AND THE PREVAILING LET'S DO IT THIS WAY BECAUSE THAT'S THE WAY WE'VE ALWAYS DONE IT SYNDROME MR. COELHO WORRIES LESS ABOUT TOO MUCH POWER SHIFTING TO CONGRESS NOTING THAT THESE EXECUTIVE LEGISLATIVE BALANCE OF POWER EQUATIONS INVARIABLY GO IN CYCLES HE DOES HOWEVER SUPPORT A MODIFIED LINE ITEM VETO FOR TAXES AS WELL AS SPENDING TO GIVE THE PRESIDENT MORE LEVERAGE ON BUDGETARY MATTERS REFORM CAMPAIGN FINANCING SO LEGISLATORS DEAL MORE WITH SUBSTANTIVE ISSUES AND LESS WITH RAISING CAMPAIGN MONEY IN AMERICAN POLITICS THERE HASN'T BEEN A BETTER POLITICAL FUND RAISER THAN TONY COELHO NOBODY KNOWS BETTER WHAT A DEBILITATING PROCESS IT IS THE PROBLEM IS NOT SO MUCH THAT CONTRIBUTORS THINK THEY OWN YOU OR INDUSTRIES CONTROL YOU ALTHOUGH THERE ARE EXAMPLES OF THAT MY CONCERN IS THE AMOUNT OF TIME IT TAKES FOR INDIVIDUALS TO RAISE MONEY I HAD A VERY CLOSE FRIEND IN THE SENATE WHO TOLD ME THAT IN THE TWO YEARS PRIOR TO RE ELECTION HE SPENDS AS MUCH AS SEVENTY PERCENT OF HIS TIME RAISING MONEY THAT MEANS HE ONLY SPENDS THIRTY PERCENT OF HIS TIME ON THE COUNTRY'S PROBLEMS THERE HAS BEEN A REAL ARMS RACE IN SPENDING ON CONGRESSIONAL CAMPAIGNS SOARING FIVEFOLD FROM NINETY NINE MILLION DOLLARS IN NINETEEN SEVENTY SIX TO FIVE HUNDRED TWENTY SIX POINT SIX MILLION DOLLARS LAST TIME MR. COELHO WOULD PLACE A STRICT CAP ON OVERALL SPENDING HIGH ENOUGH NOT TO DISADVANTAGE CHALLENGERS REQUIRE FULL DISCLOSURE OF ALL CONTRIBUTIONS AND PROVIDE PARTIAL PUBLIC FINANCING HE WOULD REQUIRE THAT A SIGNIFICANT AMOUNT OF A CANDIDATE'S OVERALL MONEY COME FROM THAT PARTICULAR DISTRICT OR STATE TOTAL PUBLIC FINANCING AS IN PRESIDENTIAL GENERAL ELECTIONS IS DESIRABLE BUT MR. COELHO DOUBTS THERE'S SUFFICIENT PUBLIC SUPPORT BUT HE SUGGESTS MORE THAN A FEW MEMBERS USE PUBLIC OPPOSITION AS AN EXCUSE TO OPPOSE EVEN PARTIAL PUBLIC FINANCING THEY DON'T WANT A COMPETITIVE RACE AND PUBLIC FINANCING WOULD CREATE MORE COMPETITIVE RACES AND THE MAN WHO ASSEMBLED THE DEMOCRAT'S MOST EFFECTIVE FUND RAISING MACHINE IN THE NINETEEN EIGHTIES KNOWS HE HELPED CREATE A MONSTER CAMPAIGNS HAVE NOW BECOME A FULL TIME BUSINESS YOU SET UP THE MECHANISM TO HAVE FULL TIME POLLSTERS FULL TIME MEDIA PEOPLE AND OTHERS THEY ARE ENGAGED YEAR ROUND THAT MEANS YOU RAISE ENOUGH MONEY TO PAY THEM ALL YEAR THE CYCLE JUST GOES ON AND ON ALSO IT'S LIKE HEALTH CARE IN THAT EVERY NEW FANDANGLE THING THAT COMES ALONG POLITICALLY YOUR CONSULTANT WANTS TO TRY YOU DON'T NEED IT BUT YOU'RE AFRAID THE OTHER SIDE WILL HAVE IT AND IT JUST KEEPS DRIVING COSTS UP I FOUND AL HUNT'S FEBRUARY THIRD POLITICS AND PEOPLE QUOTE COELHO ON CONGRESSIONAL REFORM QUOTE AMUSING AND A LITTLE BIT IRONIC I AM TEMPTED TO SAY AS VICTOR LASZLO SAID TO RICK IN CASABLANCA WELCOME TO THE FIGHT THIS TIME I KNOW OUR SIDE WILL WIN BUT TONY COELHO HAS NEVER BEEN A DISINTERESTED BYSTANDER IN THE BATTLE FOR TRUE CONGRESSIONAL REFORM IN MY VIEW HE HAS BEEN ON THE OTHER SIDE OF THE DEBATE WORKING TO PRESERVE THE STATUS QUO UNDER THE DEMOCRATIC MAJORITY AS MAJORITY WHIP HE WORKED TO STRENGTHEN THE DEMOCRATS' GRIP ON THE HOUSE SKILLFULLY MANIPULATING VOTES TO INSURE THAT POLITICS WON OUT OVER POLICY HE ALSO REVOLUTIONIZED THE WAY SPECIAL INTERESTS PLAYED A PART IN DEBATES MAKING CERTAIN THAT NO VOTE CAME WITHOUT A PRICE THIS IS WHERE REFORM SHOULD START HE ADVOCATES A TERM LIMIT ON CONGRESSIONAL COMMITTEES REPUBLICANS AGREE WITH THE CONCEPT OF TERM LIMITS FOR SENIOR MEMBERS ON COMMITTEES WHICH IS WHY WE MADE A RULES CHANGE TO THAT EFFECT IN OUR OWN CONFERENCE RULES REGRETTABLY MR. COELHO'S FORMER COLLEAGUES IN THE DEMOCRATIC LEADERSHIP HAVE RESISTED OUR EFFORTS TO GET THIS REFORM IMPLEMENTED IN THE HOUSE HIS LEADERSHIP COLLEAGUES ALSO RESISTED MY EFFORT TO INCLUDE TAX BILLS FOR THE LINE ITEM VETO ANOTHER REFORM ADVOCATED BY MR. COELHO BY ALLOWING THE PRESIDENT TO STRIP OUT SPECIAL INTEREST TAX LOOPHOLES AS WELL AS SPECIAL INTEREST APPROPRIATIONS THE FIRST STEPS TO FISCAL SANITY COULD BE TAKEN UNFORTUNATELY MY AMENDMENT THAT PASSED THE HOUSE OVERWHELMINGLY WAS SNUFFED OUT BY THE HOUSE LEADERSHIP WITH A TECHNICAL PROCEDURAL MANEUVER MR. COELHO SAYS HE BELIEVES CONGRESS SHOULD BE REORGANIZED AUTOMATICALLY EVERY DECADE THAT'S NOT A BAD IDEA BUT SURELY MR. COELHO KNOWS THE BIGGEST OBSTACLE TO REFORM COMES WITH HIS FORMER COLLEAGUES IN THE HOUSE DEMOCRATIC LEADERSHIP AS OUR EXPERIENCE WITH THE JOINT COMMITTEE ON THE ORGANIZATION OF THE CONGRESS PROVED FINALLY HE BELIEVES THAT THE CAMPAIGN FINANCING SYSTEM SHOULD BE OVERHAULED TO GIVE LEGISLATORS A BREAK FROM FUND RAISING COMING FROM THE MAN WHO HAD MORE TO DO WITH THE CURRENT SYSTEM THAN ANYONE ELSE THIS IS QUITE AN ADMISSION REPUBLICANS HAVE A COMPREHENSIVE CAMPAIGN FINANCE REFORM PACKAGE THAT BANS PACS BANS SOFT MONEY AND REQUIRES THAT MOST OF A CANDIDATE'S FUNDS COME FROM THE DISTRICT WHEN MR. COELHO ENDORSES OUR PLAN I KNOW HE WILL BE SERIOUS MAYBE TONY COELHO HAS CHANGED MAYBE HE NOW REALLY BELIEVES THAT REPUBLICANS HAVE BEEN RIGHT ALL ALONG IN THAT CASE I WOULD SAY WELCOME TO THE FIGHT THIS TIME I KNOW OUR SIDE WILL WIN U. K. AIRPORT ADMINISTRATOR B. A. A. P. L. C. SAID TRAFFIC AT ITS SEVEN AIRPORTS ROSE FIVE POINT FOUR PERCENT IN JANUARY FROM A YEAR EARLIER TO FIVE POINT SIX MILLION PASSENGERS STANSTED AIRPORT RECORDED TWENTY PERCENT GROWTH HEATHROW WAS UP SEVEN POINT ONE PERCENT AND GATWICK WAS UNCHANGED FROM A YEAR EARLIER YOUR JANUARY EIGHTEENTH ARTICLE QUOTE EXPECTED BIG ONE HASN'T ARRIVED YET QUOTE ABOUT THE LOS ANGELES EARTHQUAKE HAS AN ARITHMETIC FLAW THE ARTICLE ACKNOWLEDGES THE EARTHQUAKE AS BEING SIX POINT SIX ON THE RICHTER SCALE WHICH IS A LOGARITHMIC SCALE TO THE BASE TEN THE NINETEEN NINETY TWO EARTHQUAKE IN SOUTHERN CALIFORNIA WAS ACCORDING TO THE ARTICLE ONLY SEVEN POINT FIVE MAGNITUDE WHILE THIS IS A RESPECTABLE MAGNITUDE IT IS ONLY EIGHT TIMES LARGER RATHER THAN THE THIRTY TIMES LARGER STATED IN THE ARTICLE BY COMPARISON THE EIGHT POINT THREE SAN FRANCISCO NINETEEN OH SIX EARTHQUAKE WAS FIFTY TIMES LARGER THAN THE ONE WE HAD HERE JANUARY SEVENTEENTH PART OF THE C. B. S. OLYMPIC BROADCASTING TEAM IN LILLEHAMMER HANK KASHIWA IS BACK AMID THE EUROPEAN LED INTERNATIONAL SKI FRATERNITY HE EARNED HIS BID AS A WORLD CLASS RACER FOR MORE THAN A DECADE INCLUDING A SPOT ON THE U. S. TEAM AT THE NINETEEN SEVENTY TWO WINTER GAMES IN HIS DAY JOB AS PRESIDENT OF VOLANT SKI CORPORATION IN BOULDER COLORADO HOWEVER MR. KASHIWA IS RATHER OUTSIDE THE FOLD HIS IS A NICHE EQUIPMENT MAKER JUST AS AMERICANS GENERALLY HAVE BECOME MORE PERIPHERAL TO SKI MANUFACTURING WHEN A U. S. CONSUMER BUYS DOWNHILL SKIS ODDS ARE NEARLY THREE TO ONE HE'LL GET A EUROPEAN IMPORT CROSS COUNTRY SKIS ALMOST CERTAINLY COME FROM ACROSS THE ATLANTIC THE SAME WITH BOOTS AND BINDINGS THE LINK BETWEEN SKIER AND SLATS THE MAJOR REMAINING EXCEPTION TO THIS RULE IS K. TWO CORPORATION IN VASHON WASHINGTON ON AN ISLAND IN PUGET SOUND BUT EVEN K. TWO'S DOWNHILL SKIS WHICH IT SAYS HAVE TWENTY PERCENT OF THE U. S. MARKET AND TEN PERCENT WORLD WIDE DRAW NEARLY HALF THEIR COMPONENT VALUE FROM ABROAD THE MATERIALS BASE FOR THE QUOTE HARD GOODS QUOTE IN SKIING IS MAINLY OVERSEAS IN EUROPE PRIMARILY AND IN JAPAN WHICH EQUIPS ITS HOME MARKET AND DOES LITTLE EXPORTING IN THIS INDUSTRY THERE'S NOTHING WRONG HERE MANUFACTURING IS A GLOBAL ENTERPRISE AND SKIERS ARE ENTITLED TO THE BEST BUY BUT WHY IS RENEWED AMERICAN INDUSTRIAL PROWESS NOT SO EVIDENT IN THIS FIVE BILLION DOLLARS INTERNATIONAL SECTOR SKIING IS A SPECIAL CASE IT TURNS OUT BUT A WORLD OF MORE STABLE CURRENCIES MIGHT CHANGE THINGS SKIING IS DIFFERENT FIRST OF ALL BECAUSE THE U. S. MARKET IS NOT THE DRIVER THAT IT IS IN MOST CONSUMER GOODS ONLY FIVE PERCENT TO TEN PERCENT OF AMERICANS SKI REGULARLY LESS THAN IN ANY MAJOR INDUSTRIALIZED NATION EXCEPT BRITAIN THIS MEANS THAT EVEN AT MORE THAN A MILLION SKI SETS SOLD ANNUALLY THE U. S. PACKS BARELY HALF THE PUNCH OF JAPAN AND MAYBE A THIRD THAT OF EUROPE WITH ITS ORIGINS IN THE ALPS DOWNHILL AND THE NORDIC COUNTRIES CROSS COUNTRY AND ITS NETWORKS OF CRAFTSMEN DOWN TO THE BUCKLES ON THE BOOTS CENTERED ON THE CONTINENT THE SPORT HAS GOOD REASON FOR CONGREGATING COMMERCIALLY IN EUROPE HOWEVER THE U. S. INDUSTRY ENJOYED A SIZABLE OPENING FROM WORLD WAR TWO TILL THE EARLY NINETEEN SEVENTIES DURING WHICH TIME IT INTRODUCED THE METAL SKI AND LATER THE HARD PLASTIC BOOT HOWARD HEAD'S SKI COMPANY IN TIMONIUM MARYLAND WAS A MAJOR PLAYER BUT HIS NAMESAKE BRAND AND OTHER ONETIME U. S. PRODUCTS INCLUDING LANGE BOOTS ARE NOW MADE IN EUROPE OR IN THE CASE OF ONCE POPULAR HEXCEL SKIS NOT AT ALL PERFORMANCE SKIING SUCH AS AT THE OLYMPICS IS NEARLY ENTIRELY A EUROPEAN EXPO AMERICAN TOMMY MOE WON HIS DOWNHILL GOLD MEDAL THIS WEEK ON SKIS FROM DYNASTAR OF FRANCE EVEN AT THE RECREATIONAL END OF THE MARKET HOWEVER THE U. S. HAS RETREATED WITH ITS SUPPLIER BASE BUT PRODUCTION SITING DOESN'T JUST REFLECT PHYSICAL IMPERATIVES DAVID CURRIER AN OLYMPIC TEAMMATE OF MR. KASHIWA'S AND NOW MARKETING DIRECTOR AT VOLANT OBSERVES THAT THE SPORT AND THE INDUSTRY ARE LACED WITH SOCIAL TIES THAT EXTEND INTO THE DISTRIBUTION AND SALES ARMS CRACKING THAT EURO CENTERED COMPLEX IS SOMETHING EVEN THE JAPANESE HAVE NOT TRIED VOLANT IS ATTEMPTING TO CAPTURE ATTENTION WITH A STAINLESS STEEL SKI THAT IT CLAIMS BOOSTS PERFORMANCE MR. KASHIWA'S BROTHER A LOS ALAMOS NATIONAL LABORATORY ENGINEER WHO ONCE WORKED AT K. TWO DEVELOPED THE SKI AND VOLANT GOT OFF THE GROUND IN THE LATE NINETEEN EIGHTIES WITH CAPITAL FROM MIKE MARKKULA ITS CHAIRMAN AND OTHER SILICON VALLEY EXECUTIVES IT HAS YET TO TURN A PROFIT BUT HANK KASHIWA SAYS THAT CAN BE DONE NEXT YEAR WITH SALES REACHING THIRTY FIVE THOUSAND TO FORTY FIVE THOUSAND ADDING I BETTER EVEN AT THAT TARGET LEVEL VOLANT WOULDN'T BE NOTICED ON MANY LIFTS BY CONTRAST PRODUCTION AT K. TWO'S VASHON ISLAND FACILITIES WHERE PARENT ANTHONY INDUSTRIES ALSO PUTS OUT THE SMALLER OLIN AND PRE LINES IS ESTIMATED TO HIT FOUR HUNDRED THOUSAND A YEAR WITH MORE THAN SEVEN HUNDRED EMPLOYEES K. TWO TRAILS ONLY FRENCH BASED ROSSIGNOL IN POPULARITY ON THE U. S. SLOPES TIM PETRICK K. TWO'S GENERAL MANAGER ALSO TOUTS THE COMPANY'S INROADS INTO JAPAN WHERE THE JAZZIER AMERICAN SKI IMAGE HELPED IT TO DOUBLE SALES IN FOUR YEARS TO NEARLY ONE HUNDRED THOUSAND PAIRS THE GAINS CAME AFTER A FIGHT OVER ACCESS AND IN FACT K. TWO HAS BENEFITED FROM A U. S. GOVERNMENT FUNDED TRADE ADJUSTMENT ASSISTANCE CENTER IN THE NORTHWEST WHILE ACCENTING THE DEGREE OF HAND CRAFTSMANSHIP IN ITS ASSEMBLY K. TWO HAS BEEN ABLE TO KEEP COSTS DOWN WELL BELOW WHAT OLIN EXPERIENCED AT ITS PRIOR CONNECTICUT LOCATION SAYS MR. PETRICK WHO WAS IN CHARGE OF RELOCATING THAT DIVISION BUT THE ESSENCE OF MASS SKI MAKING MAY BE IN MACHINERY SUCH AS AT THE THIRTY FIVE MILLION DOLLAR CAPPED SKI PLANT ROSSIGNOL OPENED IN FRANCE IN LATE NINETEEN NINETY TWO AND INVESTMENT CAPITAL IS BOUND TO BE ATTRACTED BY EUROPE'S EXISTING INFRASTRUCTURE CAPPED SKIS WHICH ENCASE A USUALLY WOOD OR FOAM CORE IN HARD PLASTICS CAN BE MORE EFFICIENT TO MAKE THAN TRADITIONAL LAMINATED SKIS VOLANT'S TWIST IS TO RETURN TO LIGHTWEIGHT METAL FOR ITS CAPS K. TWO AND OTHER MAKERS USE FIBERGLASS SURFACES THAT BETTER LEND THEMSELVES TO THE STRIKING COLORS THAT CHARACTERIZE TODAY'S SKIS IT'S OFTEN HARD TO SEPARATE FAD FROM FACT IN SKI TECHNOLOGY THE TRUTH PROBABLY IS THAT ONLY SKILLED RECREATIONAL SKIERS NOTICE MUCH DIFFERENCE ON THE MOUNTAIN LIKE MANY OTHERS SKI PRODUCTS SELL AS MUCH ON SIZZLE AS ON STEAK THAT MEANS AMERICAN MAKERS CAN BEAT THE JAPANESE BUT THE MAJOR EUROPEAN LINES WHICH NEARLY ALL HAVE U. S. MARKETING ARMS HAVE LEARNED TO BEST BOTH CURRENCY COUNTS TOO WAS IT A COINCIDENCE THAT THE U. S. SKI INDUSTRY WAS ROUTED TO ITS VASHON ISLAND BULWARK DURING THE GREAT MONETARY UPHEAVALS TODAY EVEN K. TWO UTILIZES PRODUCTION IN NORWAY NEAR LILLEHAMMER TO SERVE ITS OVERSEAS MARKETS INCLUDING JAPAN WITH LESS EXCHANGE RATE RISK THAN A DOLLAR BASED PRODUCT EVEN IN SNOWBOARDING THE YOUTH CENTERED CROSS BETWEEN SURFING AND SKIING THAT WAS AN AMERICAN IDEA AND NOW ACCOUNTS FOR MORE THAN TEN PERCENT OF THE SKI TRADE CURRENCIES ARE A FACTOR BURTON SNOWBOARDS OF BURLINGTON VERMONT THE DOMINANT NAME IN THAT SUBMARKET RELIES ON AN AUSTRIAN PLANT FOR MUCH OF ITS OUTPUT ALTHOUGH THE PRIVATELY HELD COMPANY REPORTS IT STILL IS MOSTLY A U. S. CANADIAN PRODUCER IN BOTH THE RADICAL CULTURE OF SNOWBOARDING AND IN THE INCREASINGLY MATURE MARKET FOR DOWNHILL SKIING THERE MAY BE HOPE FOR A DECENT U. S. BASE IN THE SPORT SNOWBOARD SHREDDERS HAVE THEIR CULT HEROES BUT BASICALLY REBEL AGAINST TOO MUCH MANIPULATION IN THE ALPINE SEGMENT MEANWHILE EUROPEAN BRAND ASSOCIATION WITH THE WORLD'S GREAT SKI RACERS MAY NO LONGER BE SUCH A TRUMP CAN AMERICAN BABY BOOMERS FATHOM HOW THEIR NEEDS ON THE SLOPES RELATE TO TOMBA ON T. V. THE OLYMPICS ARE A BOON TO THE BUSINESS NO QUESTION BUT IN THE FUTURE SALES MAY INCREASINGLY HINGE ON OFFERING THE AVERAGE SKIER RELIABLE TURNS STABILITY AND GOOD VALUE MANUFACTURERS STRUGGLING TO ANSWER THAT CALL MIGHT ASK AS MUCH OF MONETARY AUTHORITIES I OFTEN QUOTE ME ARE SAD TO FIND THAT NOW IT'S QUOTE IN QUOTE WHEN YOU CAN'T TELL WHOM FROM WHO HEWLETT PACKARD COMPANY PALO ALTO CALIFORNIA SAID IT MAY HAVE DEVELOPED A PRACTICAL ALTERNATIVE TO INCANDESCENT LAMPS THE ADVANCE WHICH DEPENDS ON A NEW TECHNIQUE THAT MAKES POSSIBLE THE WORLD'S BRIGHTEST LIGHT EMITTING DIODES COULD TURN UP IN AUTOMOBILE TAILLIGHTS WITHIN TWO TO THREE YEARS THE COMPANY SAID LIGHT EMITTING DIODES FORM THE BASIS FOR VARIOUS THIN ELECTRONIC SCREENS THEIR LACK OF BRIGHTNESS HAS HAMPERED THEIR USE IN THE PAST BUT HEWLETT PACKARD SAID ITS LIGHT EMITTING DIODES ARE AS MUCH AS FOUR TIMES BRIGHTER THAN THOSE FROM RIVALS THE COMPANY DECLINED TO FORECAST THE SIZE OF THE MARKET FOR THESE NEW LIGHTS BUT A SPOKESMAN SAID THE TECHNOLOGY COULD REPLACE INCANDESCENT LAMPS IN MANY SITUATIONS INCLUDING TRAFFIC LIGHTS THE COMPANY SAID IT WILL BEGIN SELLING SAMPLE QUANTITIES OF THE LIGHTS AT MIDYEAR THE NEW RECEIVED WISDOM ABOUT INVESTING IN BANKRUPTCIES IS THAT IF YOU GET A CHANCE TO PLAY YOU CAN BET THE JUICE IS GONE BY THAT TIME EXECUTIVES OF STRAPPED COMPANIES ALREADY HAVE INDUCED WORKOUTS FAVORABLE TO THEM AND THEIR ALLIES ONLY WHEN THE STOCKS ARE IN FRIENDLY HANDS DO THEY SOAR PHOENIX LIKE INTO THE MARKET EXPLAIN THEN PLEASE THE BEHAVIOR OF HILLS STORES WHICH WAS KNOWN BEFORE ITS FEBRUARY NINETEEN NINETY ONE BANKRUPTCY COURT FILING AS HILLS DEPARTMENT STORES THE CANTON MASSACHUSETTS BASED RETAILER WHICH OPERATES DISCOUNT DEPARTMENT STORES IN SMALL NORTHEASTERN TOWNS HAS BEEN BACK ON ITS FEET SINCE OCTOBER WHEN IT EMERGED FROM BANKRUPTCY LAW PROCEEDINGS BY ALL ACCOUNTS THE COMPANY IS SET TO DELIVER STELLAR FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED JANUARY TWENTY NINTH YET THE STOCK CAN'T GET OFF THE GROUND IT'S LANGUISHING AT NINETEEN AND THREE EIGHTHS A WHISKER SHY OF ITS TWENTY DOLLAR STATED VALUE IN THE WORK OUT PLAN AT THAT PRICE IT LOOKS DOWNRIGHT CHEAP TO SOME INVESTORS LEHMAN BROTHERS THE NEW YORK INVESTMENT BANK RECENTLY SNAPPED UP AN EIGHT POINT ONE PERCENT STAKE IN HILLS STORES FROM WESTINGHOUSE CREDIT CORPORATION OF PITTSBURGH A LENDER TO THE RETAILER'S ILL FATED NINETEEN EIGHTY FIVE LEVERAGED BUYOUT MEANWHILE FIDELITY INVESTMENTS THE BIG BOSTON MUTUAL FUND GROUP DOUBLED ITS HOLDINGS EARLIER THIS YEAR TO ABOUT SIXTEEN PERCENT OF SHARES OUTSTANDING BY BUYING MOST OF THE HOLDINGS OF APOLLO ADVISORS A NEW YORK QUOTE VULTURE QUOTE INVESTOR IN THE BANKRUPTCY WHAT LURES THESE SAVVY INVESTORS IS CASH FLOW AND HILLS HAS PLENTY OF IT CASH FLOW OR THE AMOUNT OF CASH THE BUSINESS GENERATES AFTER OPERATING EXPENSES BUT BEFORE SUCH EXPENSES AS INTEREST PAYMENTS TAXES AND DEPRECIATION OFTEN IS A BETTER GAUGE OF A REORGANIZED COMPANY'S PROSPECTS THAN ITS EARNINGS LARGE LOSSES AND OTHER CHARGES CAN SKEW REPORTED EARNINGS SAYS JEFFREY WIEGAND OF ROBOTTI AND ENG A NEW YORK FIRM EXPERT IN SPECIAL SITUATION INVESTING OFTEN THE BALANCE SHEET HAS BEEN RESTATED SO THAT BOOK VALUE IS MEANINGLESS ADDS MR. WIEGAND WHO TRACKS STOCKS OF FORMER BANKRUPTCY WARDS THESE DAYS HILLS' STOCK IS TRADING AT FOUR TIMES THE ONE HUNDRED THIRTY FIVE MILLION DOLLARS OR SO IN CASH FLOW IT GENERATED IN THE PAST FISCAL YEAR THAT'S CHEAPER THAN CURRENT MULTIPLES OF COMPARABLE DISCOUNTERS SUCH AS CALDOR OR BRADLEES WHICH HAVEN'T HAD THE CHANCE TO REVAMP THEMSELVES UNDER THE GENEROUS SHELTER OF BANKRUPTCY AND IT'S A STEAL COMPARED TO WHAT INVESTORS ARE PAYING TO BET ON RETAILERS STILL IN BANKRUPTCY COURT FOR INSTANCE WHILE SHARES OF R. H. MACY DON'T TRADE PUBLICLY ITS JUNK BONDS DO AND THEY'VE BEEN BID UP TO A LOFTY THIRTEEN TIMES ITS CURRENT CASH FLOW AND SEVEN TIMES NEXT YEAR'S OPTIMISTIC PROJECTIONS BUT RETAILERS CANNOT LIVE BY CASH FLOW ALONE ESPECIALLY DISCOUNTERS FACING THE LIKES OF WAL MART THAT'S BEEN THE HURDLE FACING HILLS WAL MART HAS BEEN STEADILY ENCROACHING ON THE DISCOUNTER'S TERRAIN ESPECIALLY IN PENNSYLVANIA WHERE HILLS ONCE RULED PRACTICALLY UNCHALLENGED STEAMROLLED BY THE ARKANSAS JUGGERNAUT DURING THE PAST RECESSION THE COMPANY'S LOSS WIDENED TO TWO HUNDRED SEVENTY THREE POINT SEVEN MILLION DOLLARS IN NINETEEN NINETY ONE TO HELP HILLS STAGE A COMEBACK CREDITORS SWEPT OUT MANAGEMENT AND BROUGHT IN A NEW TEAM LED BY MICHAEL BOZIC FORMER HEAD OF SEARS MERCHANDISE GROUP A MAIN DIVISION OF THE CHICAGO RETAILER EVEN THOUGH HILLS STILL WAS MIRED IN BANKRUPTCY COURT HE SET TO WORK ON AN AMBITIOUS REMODELING EFFORT DESPITE HOWLS FROM ANXIOUS CREDITORS THOSE HOWLS HAVE SINCE MUTED INTO CONTENTED PURRS AND NO WONDER HILLS MANAGEMENT OVERHAULED ITS BLAND STORES ACCORDING TO WHAT MANAGEMENT CALLS A WAL MART FORMULA AND SO FAR THE STRATEGY HAS WORKED SALES AT STORES OPEN MORE THAN A YEAR THE YARDSTICK BY WHICH RETAILERS MEASURE PERFORMANCE ROSE A BUOYANT TEN POINT TWO PERCENT IN DECEMBER FROM A YEAR AGO AND EVEN STORES PITTED DIRECTLY AGAINST WAL MART MANAGED TO EKE OUT SEVEN PERCENT SALES GROWTH GONE ARE HILLS'S ARBITRARY CLUSTERS OF CLOTHING ITS MASSES OF DISCOUNTED BRAND GOODS INSTEAD THE REMODELED STORES LURE THE COMPANY'S PREDOMINANTLY FEMALE SHOPPERS WITH BARGAIN PRICED HEALTH AND BEAUTY AIDS AND NEW STREAMLINED AISLES AT THE CENTER OF THOSE STORES ARE RESPLENDENT WITH DISCOUNTED CLOTHES WHICH ACCOUNT FOR A LARGE PART OF SALES MR. BOZIC EMBOLDENED BY HIS SUCCESS HAS EVEN BEEN EXPANDING HILLS'S PRIVATE LABEL AMERICAN SPIRIT WHICH NOW ENCOMPASSES NOT ONLY APPAREL BUT BATH ACCESSORIES AND GARBAGE PAILS HOWEVER THE FACELIFT HASN'T COME CHEAP IT HAS COST HILLS ABOUT SEVENTY FIVE MILLION DOLLARS SO FAR TO REDO HALF ITS STORES ABOUT SEVEN HUNDRED THOUSAND DOLLARS PER SITE BUT IT'S BEEN THE PERFECT DEFENSIVE STRATEGY AGAINST WAL MART SAYS ONE HAPPY SHAREHOLDER ONE WORD OF CAUTION HILLS ISN'T FOR THE FAINT HEARTED THE STOCK REMAINS NEGLECTED BY MOST WALL STREET ANALYSTS AND VOLUME IS VERY THIN WHILE THAT ADDS TO ITS ATTRACTIVENESS FOR SOME IT MEANS INVESTORS SHOULD BE PREPARED TO HOLD FOR THE LONGTERM RATHER THAN GO FOR A QUICK PROFIT THE DREAM OF OWNING A QUOTE HOME PLACE QUOTE IS ONE SHARED BY ALL YOUNG FARMERS MY WIFE AND I REALIZED OUR DREAM IN NINETEEN EIGHTY THREE WHEN WE BOUGHT OUR TWO HUNDRED TWENTY ACRES WE'VE RAISED A LOT OF CORN AND SOYBEANS THREE WONDERFUL CHILDREN AND STARTED A SMALL SIDE BUSINESS HERE IT'S BEEN A GREAT HOME BUT AS AN INVESTMENT IT'S BEEN LOUSY FARMLAND WAS A GOOD INVESTMENT FOR A GENERATION HERE IN NORTHWEST MISSOURI LAND VALUES QUINTUPLED IN THE TWENTY YEARS FROM NINETEEN SIXTY TO NINETEEN EIGHTY THEN PAUL VOLCKER PUT AN END TO THE FUN THE HIGH INTEREST RATE POLICIES OF THE FED IN THE EARLY EIGHTIES WERE SUCCESSFUL IN THE FIGHT AGAINST INFLATION THE FIRST CASUALTY WAS THE INFLATED LAND VALUES OF THE LATE SEVENTIES FARMLAND IN MANY AREAS LOST HALF ITS VALUE AND THE FARM CRISIS OF THE EARLY EIGHTIES WAS THE RESULT THE LAND PRICE INFLATION OF THE SEVENTIES HAD ITS ROOTS INSIDE AND OUTSIDE AGRICULTURE DEMAND FOR FARM PRODUCTS INCREASED BECAUSE OF DETENTE AND CROP FAILURES WORLD WIDE WE ENDURED DROUGHTS AND OTHER PRODUCTION PROBLEMS DOMESTICALLY THAT INCREASED COMMODITY PRICES MOST IMPORTANT REAL INTEREST RATES WERE NEGATIVE CREDIT TO FARMERS WAS SUBSIDIZED AND FARMLAND WAS SEEN AS THE PERFECT INFLATION HEDGE AFTER THE BOTTOM DROPPED OUT OF THE MARKET AND A WHOLE GENERATION OF FARMERS HAD TO SEEK EMPLOYMENT ELSEWHERE A MORE SOBER APPROACH TO REAL ESTATE VALUATION PREVAILED FARM INCOMES STABILIZED BUT FARMLAND PRICES DID NOT RECOVER NOW THE FACTORS THAT KEPT FARMLAND PRICES LOW FOR A DECADE ARE BEGINNING TO CHANGE AND FARM REAL ESTATE MAY YET AGAIN BECOME A FAVORITE LAST FALL HOWEVER IN ANOTHER OBSTACLE TO A TURNAROUND THE CLINTON ADMINISTRATION DELIVERED A BLOW TO FARMERS IN THE MIDWEST WITH THE ANNOUNCEMENT THAT PUBLIC MONEY WOULD NOT BE AVAILABLE TO REPAIR ALL THE LEVEES DAMAGED BY FLOODS MANY ENVIRONMENTALISTS APPLAUDED WITH VISIONS OF A MASSIVE WETLAND STRETCHING ACROSS MISSOURI BY DECEMBER FEWER THAN TEN PERCENT OF THE SEVERAL HUNDRED DAMAGED LEVEES HAD BEEN REPAIRED LEAVING SOME FOUR HUNDRED EIGHTY THOUSAND ACRES VULNERABLE TO FUTURE FLOODS IRONICALLY WHILE FUNDS TO REPAIR LEVEES ARE LIMITED THERE SEEMS TO BE NO LIMIT ON FUNDS FOR THE WETLANDS RESERVE PROGRAM AND MANY FARMERS WITH SEVERE FLOOD DAMAGE ARE SIGNING CONTRACTS WITH THE FEDERAL GOVERNMENT TO TAKE THEIR LAND OUT OF PRODUCTION PERMANENTLY AT THE SAME TIME FARMERS IN CALIFORNIA LAST YEAR LOST A CONSIDERABLE PORTION OF THEIR IRRIGATION WATER RIGHTS ONE POINT TWO FIVE MILLION ACRE FEET OF WATER AS FEDERAL AUTHORITIES ACTED TO PROTECT FISH WILDLIFE AND WETLANDS OTHER FARMERS ARE NOW ABLE TO SELL WATER RIGHTS FOR USES MORE VALUABLE THAN AGRICULTURE DANIEL BEARD THE NEW COMMISSIONER OF THE FEDERAL BUREAU OF RECLAMATION UNFORTUNATELY HAS SIGNALED HIS WILLINGNESS TO LISTEN SYMPATHETICALLY TO PLANS TO DIVERT IRRIGATION WATER AWAY FROM FARMERS AND TOWARD OTHER USES HE SAYS THAT FARMERS CAN EXPECT TO PAY MORE FOR LESS WATER AS MORE EMPHASIS IS PUT ON THE NEEDS OF CITIES AND ENDANGERED SPECIES BECAUSE THE ENDANGERED SPECIES ACT PROTECTS THE HABITATS OF VARIOUS LISTED SPECIES FARMERS FIND THAT WHAT THEY ONCE CONSIDERED SIMPLY A CORNFIELD IS NOW DESIGNATED A HABITAT NO LONGER AVAILABLE FOR FARMING IN THIS VEIN THE COASTAL CALIFORNIA GNATCATCHER THE RED COCKADED WOODPECKER AND THE DESERT TORTOISE ITS SIX POINT SIX MILLION ACRE HABITAT COULD LIMIT CATTLE GRAZING OVER AREAS IN SEVERAL STATES ARE AS LIKELY TO BE DISCUSSED DOWN AT THE LOCAL COFFEE SHOP AS IS THE NEWEST JOHN DEERE MACHINERY OR HYBRID CORN NOW CONGRESS IS DEBATING A BILL TO FUND A NATIONWIDE BIOLOGICAL SURVEY TO LIST ALL BIOLOGICAL RESOURCES ON BOTH PUBLIC AND PRIVATE LANDS NO DOUBT MORE THREATENED SPECIES WILL BE FOUND MAKING LESS LAND AVAILABLE FOR PRODUCTION FARMERS EVERYWHERE FACE MORE REGULATION AS THEY ATTEMPT TO USE THE TECHNOLOGY THAT HAS SO DRAMATICALLY INCREASED YIELDS IN THE PAST IN SEVERAL WATERSHEDS WHERE NITRATES ARE A PROBLEM FARMERS MUST LIMIT THEIR USE OF FERTILIZER THE CLINTON ADMINISTRATION HAS ANNOUNCED A POLICY WHEREBY THE BENEFITS OF PESTICIDES WON'T BE CONSIDERED DURING A PRODUCT'S APPROVAL PROCESS PESTICIDES WITH EVEN NEGLIGIBLE RISK MUST BE WITHDRAWN EXCEPT IN EXCEPTIONAL CASES THE ADMINISTRATION ALSO WANTS TO BAN THE USE OF ALL HIGH RISK PESTICIDES BY THE YEAR TWO THOUSAND INTERIOR SECRETARY BRUCE BABBITT HAS BEEN INVOLVED IN A YEARLONG EFFORT TO DOUBLE GRAZING FEES ON FEDERAL LANDS COUCHED IN TERMS OF DEFICIT REDUCTION THE REAL BATTLE IS BETWEEN RANCHERS WHO WOULD UTILIZE PUBLIC LANDS AND ENVIRONMENTALISTS WHO WOULD RETURN THE LAND TO THE WILD IF THE ENVIRONMENTALISTS ARE SUCCESSFUL MUCH OF THE WEST WILL NO LONGER BE USED FOR AGRICULTURE REAL ESTATE BROKERS AND PEOPLE INVOLVED IN THE CATTLE INDUSTRY HERE IN MISSOURI ARE RECEIVING CALLS FROM WESTERN RANCHERS INTERESTED IN MOVING THEIR OPERATIONS TO THE MIDWEST IN CASE THEY LOSE THE RIGHT TO RANCH AS THEY HAVE FOR OVER A CENTURY THE BATTLE IS FAR FROM OVER BUT THE DIRECTION OF CHANGE IS OMINOUS MISGUIDED ENVIRONMENTAL CONCERNS WILL DECREASE THE AMOUNT OF LAND BEING FARMED AND WILL DECREASE PRODUCTION ON THE LAND REMAINING IN USE WHILE THE LAND PRICE BOOM IN THE SEVENTIES WAS FUELED BY A BIG INCREASE IN FARM EXPORTS THE EXPORT MARKET FOR AMERICAN FARMERS STUMBLED IN THE EIGHTIES AS THE COMMON MARKET CAPTURED MANY OF OUR CUSTOMERS WITH HUGE EXPORT SUBSIDIES BUT THIS SITUATION MAY CHANGE THE GENERAL AGREEMENT ON TARIFFS AND TRADE REQUIRES A TWENTY PERCENT DROP IN EUROPEAN SUBSIDIES TO BE PHASED IN OVER SEVERAL YEARS ALONG WITH A FIRST TIME EVER ENTRY FOR AMERICAN RICE IN THE JAPANESE MARKET THE EXPORT PICTURE FOR OUR AGRICULTURAL PRODUCTS HASN'T BEEN THIS BRIGHT FOR A DECADE IN ADDITION THE CLINTON ADMINISTRATION'S PROGRAM CALLING FOR THE USE OF ETHANOL FUEL MADE PRIMARILY FROM CORN IN CITIES THAT ARE NOT IN COMPLIANCE WITH CLEAN AIR STANDARDS WILL CREATE A HUGE DEMAND FOR CROPS THE PRICE OF GOLD IS UP AND INTEREST RATES ARE LOW ALTHOUGH INFLATION HEDGES RECENTLY HAVE BEEN OUT OF STYLE OWNING FARMLAND IS STILL DESIRABLE WITH CURRENTLY LOW INTEREST RATES AND A POSSIBLE RATE OF RETURN OF AROUND EIGHT PERCENT FARMLAND IS IN FACT NOT A BAD INVESTMENT IN THE LATE EIGHTEEN HUNDREDS FARMERS ALL ACROSS AMERICA LIT CANDLES IN SUPPORT OF A SPECULATOR WHO WAS ATTEMPTING TO CORNER THE MARKET IN WHEAT AND WHO WOULD THEREBY BOOST THEIR FORTUNES TODAY FARMERS ARE FEELING THE PINCH FROM AN ENVIRONMENTAL ETHOS THAT THREATENS TO FORCE MANY OUT OF BUSINESS BUT FOR THE FEW SURVIVORS THE PROSPECTS FOR AGRICULTURE HAVE NEVER BEEN BRIGHTER MAYBE WE FARMERS SHOULD BE LIGHTING CANDLES FOR THE SIERRA CLUB AND THE NATIONAL WILDLIFE FEDERATION MR. HURST FARMS AND RUNS A FLOWER NURSERY IN WESTBORO MISSOURI SPAIN'S STATE RUN ELECTRICITY COMPANY EMPRESA NACIONAL DE ELECTRICIDAD S. A. OR ENDESA SAID ITS CONSOLIDATED NET INCOME ROSE NINE POINT NINE PERCENT IN NINETEEN NINETY THREE TO ONE HUNDRED SIXTEEN POINT EIGHT ONE BILLION PESETAS EIGHT HUNDRED NINETEEN MILLION DOLLARS FROM ONE HUNDRED SIX POINT THREE OH BILLION PESETAS IN NINETEEN NINETY TWO WEAKNESS OF ELECTRICITY DEMAND IN THE FIRST TEN MONTHS OF NINETEEN NINETY THREE HURT MADRID BASED ENDESA WHICH NOTED TOTAL DEMAND IN THE SECTOR CREPT ONLY ZERO POINT ONE PERCENT HIGHER DURING THE YEAR MEANWHILE LOW HYDRAULIC PRODUCTION DUE TO THE DROUGHT THAT PARCHED MUCH OF SPAIN UNTIL THE AUTUMN OF NINETEEN NINETY THREE FORCED ENDESA TO SWITCH TO MORE COSTLY COAL AND FOSSIL FUEL POWERED METHODS OF PRODUCTION THE COMPANY NOTED MY PERSONAL TRUST AND ADMIRATION FOR PRIME MINISTER HOSOKAWA HAS ONLY INCREASED AND FOR THE GOVERNMENT BECAUSE OF POLITICAL REFORM BECAUSE JAPAN EXERCISED LEADERSHIP IN THE URUGUAY ROUND BECAUSE OF THE INITIATIVES ON CONSTRUCTION AND RICE BECAUSE OF THE FIGHT FOR TAX REFORM AND STIMULUS BECAUSE OF THE DEREGULATION EFFORT I THINK THAT JAPAN IS MOVING IN THE RIGHT DIRECTION IT COULD BE BUT I THINK THEY THE JAPANESE WOULD HAVE TO THINK LONG AND HARD ABOUT IT LET'S SEE ON THE ONE HAND THE PRESIDENT AS STATESMAN SENSIBLY SAYS HE WANTS TO SUPPORT THE FIRST TRULY REFORMIST GOVERNMENT IN RECENT JAPANESE HISTORY ON THE OTHER HAND THE PRESIDENT AS DOMESTIC POL RATTLES HIS SABER OVER QUOTE SANCTIONS QUOTE AND EVEN A QUOTE TRADE WAR QUOTE WE HOPE MR. CLINTON UNDERSTANDS THAT THE LATTER COULD UNDERMINE THE GOALS OF THE FORMER WITH MORE RISKS TO THE U. S. JAPAN RELATIONSHIP THAN APPEAR ON THE SURFACE WE SUPPOSE IT'S ALWAYS POSSIBLE THAT THERE IS SOME DEVIOUS MACHIAVELLIAN STRATEGY AT WORK HERE THOUGH WE HAVE A HARD TIME SEEING IT FOR ONE THING THE ADMINISTRATION'S FOREMOST MACHIAVELLI HAS BEEN PREOCCUPIED WITH HEALTH CARE MOREOVER IF MR. CLINTON'S GOAL WAS TO FORCE JAPAN'S HAND THROUGH OUTSIDE PRESSURE IT SEEMS TO HAVE BACKFIRED PRIME MINISTER HOSOKAWA HAS SEEN HIS POPULARITY SOAR FOR REJECTING U. S. ULTIMATUMS MORE LIKELY MR. CLINTON AND HIS AIDES HAVE TRAPPED THEMSELVES INTO A POLITICAL AND DIPLOMATIC BOX CANYON THEY MARCHED INTO OFFICE VOWING TO GET TOUGH WITH JAPAN A LINE THAT GOES DOWN WELL IN DEMOCRATIC PARTY AND CERTAIN CORPORATE CIRCLES LAST SUMMER THEY HYPED AT HYPE MEISTER DAVID GERGEN'S URGING A FRAMEWORK AGREEMENT THAT WAS SUPPOSED TO BE A SEA CHANGE IN TRADE POLICY IN THE MEANTIME JAPAN'S ENTIRE WORLD CHANGED BUT THE OBLIVIOUS CLINTONITES STILL MARCH INTO THE CANYON WALL THE LOGIC OF THE NEW CLINTON POLICY WAS BASED ON THE PREMISE OF THE SO CALLED REVISIONISTS SUCH AS JAMES FALLOWS AND WHITE HOUSE CHIEF ECONOMIST LAURA TYSON THAT JAPAN NEVER CHANGES BUT OF COURSE JAPAN HAS NOW UNDERGONE A DRAMATIC IF FAR FROM COMPLETE PERESTROIKA AS PETER DRUCKER OBSERVES JAPAN INCORPORATED IS DEAD OR AT LEAST DYING U. S. INDUSTRIES THAT WERE GOING TO BE WIPED OUT BY JAPAN SEMICONDUCTERS ARE NOW ASCENDANT AND JAPAN'S ECONOMY SUPPOSEDLY INVINCIBLE HAS BEEN MIRED IN AN EXTENDED SLUMP MORE IMPORTANT THE POLITICAL CULTURE THAT WAS THE BASIS FOR JAPANESE MERCANTILISM HAS ALSO BEEN TURNED UPSIDE DOWN MR. HOSOKAWA AND HIS UNSTEADY COALITION OF REFORMERS HAVE HAD TO MANAGE MORE CHANGE THAN MR. CLINTON HAS EVEN CONTEMPLATED THE PRIME MINISTER HAS ALREADY BROKEN THE GERRYMANDER THAT PRODUCED THE ROTTEN BOROUGHS THAT SUPPORTED JAPAN'S CORRUPT NEXIS OF POLITICS AND BUSINESS ISN'T THIS WHAT THE U. S. WANTS MR. CLINTON'S WORDS SHOW HE UNDERSTANDS SOME OF THIS BUT HIS ACTIONS SUGGEST HE'LL KNOCK MR. HOSOKAWA AROUND EVEN AS HE PRAISES HIM MR. PRIME MINISTER LET US INTRODUCE YOU TO ROY VAGELOS ONE BRUITED POSSIBILITY IS TO FURTHER HAMMER THE DOLLAR AGAINST THE YEN A PRIMITIVE FORM OF MERCANTILISM THAT WILL ONLY MAKE IT MORE DIFFICULT FOR JAPAN'S EXPORT INDUSTRIES TO RECOVER THEN THERE'S THE OLD STANDBY OF IMPOSING QUOTE SANCTIONS QUOTE READ BORDER TAXES TO PUNISH AMERICAN CONSUMERS BECAUSE THE JAPANESE PUNISH THEIRS THIS DESPITE THE FACT THAT EVEN THE JAPAN BASHING AMERICAN AUTOMAKERS ARE REPORTING RECORD PROFITS AND ALL BECAUSE THE JAPANESE DON'T WANT TO AGREE TO QUANTITATIVE AND QUALITATIVE INDICATORS FOR JUDGING TRADE FLOWS MR. CLINTON'S TRADE REP MICKEY KANTOR INSISTS THESE AREN'T NUMERICAL TARGETS BUT WHATEVER YOU CALL THEM THEY SURE LOOK LIKE MANAGED TRADE WE'D ALSO ADD BY THE WAY THE MORE SUBTLE SLIGHTS OF PROTOCOL THAT THE CLINTON ADMINISTRATION SEEMS TO BE PRACTICING AGAINST JAPAN WE NOTICED THAT HILLARY RODHAM CLINTON DIDN'T THINK IT IMPORTANT ENOUGH TO BE IN TOWN TO ESCORT THE WIFE OF JAPAN'S PRIME MINISTER DURING LAST WEEK'S SUMMIT SHE APPARENTLY COULDN'T DELAY HER OLYMPIC T. V. EXPOSURE BY EVEN A COUPLE OF DAYS THE JAPANESE NOTICED TOO BEYOND ANY TRADE FIGHT THE BROADER DANGER HERE IS THAT THE U. S. JAPAN RELATIONSHIP WILL FRAY AT A DELICATE TIME WITH A NUCLEAR NORTH KOREA LOBBING TEST MISSILES AT TOKYO AND WITH CHINA ON THE RISE THE LAST THING AMERICA NEEDS IS A JAPAN THAT DECIDES IT CAN'T TRUST AMERICAN FRIENDSHIP YET MR. CLINTON'S POLICY IS LIKELY TO ENCOURAGE AN ANTI AMERICAN NATIONALISM THAT HAS EMERGED IN JAPANESE POLITICS IN THE PAST IT'S TRUE AS WE'VE BEEN SAYING FOR YEARS THAT JAPAN'S BUREAUCRATS STILL HAVE TOO MUCH POWER BUT THAT WON'T CHANGE BECAUSE BILL CLINTON DEMANDS IT JAPAN'S POLITICAL ECONOMY IS CHANGING BECAUSE THE JAPANESE PEOPLE ARE FORCING IT TO WHY GET IN THE WAY F. M. C. CORPORATION SAID IT HAS AGREED TO ACQUIRE THE AUTOMATED VEHICLE SYSTEMS GROUP OF CATERPILLAR INDUSTRIAL INCORPORATED A MENTOR OHIO AUTOMATED GUIDED VEHICLE SYSTEMS SUPPLIER TERMS WEREN'T DISCLOSED THE CHICAGO MACHINERY AND CHEMICALS CONCERN SAID MOST OF CATERPILLAR INDUSTRIAL'S BUSINESS RELATES TO SELF GUIDED VEHICLES THAT MOVE UNIT LOADS BETWEEN WORK CENTERS OR WAREHOUSES CATERPILLAR INDUSTRIAL IS A UNIT OF CATERPILLAR INCORPORATED PEORIA ILLINOIS F. M. C. SAID THE AUTOMATED VEHICLE GROUP WILL OPERATE AS A UNIT OF ITS ENERGY AND TRANSPORTATION EQUIPMENT GROUP'S MATERIAL HANDLING SYSTEMS DIVISION THE COMPANY SAID COMPLETION OF THE DEAL IS SUBJECT TO APPROVAL OF A DEFINITIVE AGREEMENT BY BOTH COMPANIES AND IS EXPECTED TO BE COMPLETED BY THE END OF THE FIRST QUARTER NINETEEN NINETY FOUR GREG GUMBEL SEEMS TO HAVE DISCOVERED THE SECRET OF GOOD ANCHORING KEEP A LOW PROFILE INSTEAD OF HOGGING AIR TIME MR. GUMBEL IS RELATIVELY RARELY SEEN AND WHEN HE DOES APPEAR HE IS EFFECTIVE JUST CONTRAST TWO INTERVIEWS WITH DOWNHILL WINNER TOMMY MOE ON SUNDAY NIGHT MR. GUMBEL'S WAS TO THE POINT AND INTERESTING ON MONDAY MORNING HARRY SMITH'S WAS AWKWARD AND TEDIOUS SPEAKING OF TEDIOUS C. B. S. BROUGHT A LITTLE TASTE OF TABLOID T. V. TO THE GAMES BY AIRING A GARISH RE CREATION OF THE NEO NAZI ATTACK ON AMERICAN LUGERS LAST YEAR IN GERMANY MAKES ONE SHUDDER AT WHAT THE NETWORK COULD DO WHEN TONYA HARDING ARRIVES IN LILLEHAMMER C. B. S. GAVE MORE AIR TIME TO THE MEN'S DOWNHILL THAN IT HAS ALLOTTED TO ALPINE EVENTS IN PAST OLYMPICS CAN IT BE THE NETWORK REALIZES FANS WANT TO SEE LOTS OF SKIING OR IS IT JUST THAT MR. MOE CARRIED OFF THE GOLD C. B. S. ALLOWED A BIT OF DRAMA ON ITS MORNING SHOW YESTERDAY BY AIRING LIVE DAN JANSEN'S LATEST OLYMPIC DISAPPOINTMENT C. B. S.'S SUNDAY PRIME TIME AUDIENCE WAS THE LARGEST EVER FOR A SINGLE NIGHT OF OLYMPICS COVERAGE WINTER OR SUMMER AN ESTIMATED EIGHTY TWO MILLION PEOPLE WATCHED ALL OR PART OF THE COVERAGE C. B. S. DREW TWENTY NINE POINT TWO PERCENT OF THE NATION'S T. V. HOUSEHOLDS COMPARED WITH TWENTY THREE POINT FIVE PERCENT FOR THE FIRST SUNDAY NIGHT OF THE NINETEEN NINETY TWO WINTER GAMES AS COMPILED BY A. C. NIELSEN COMPANY IN OVERNIGHT RATINGS FROM THIRTY MAJOR CITIES C. B. S. ONCE AGAIN ROUTED ITS RIVALS WITH RATINGS OF TWENTY EIGHT POINT SEVEN PERCENT TO TEN POINT SEVEN PERCENT EACH FOR N. B. C. AND A. B. C. SCOTT HAMILTON IS AMAZING THE SKATING COMMENTATOR KNOWS HOW OTHER PEOPLE ARE FEELING QUOTE SHE'S NOT FEELING ANY PAIN RIGHT NOW I GUARANTEE QUOTE HE REMARKED AS ISABELLE BRASSEUR OF CANADA SKATED WITH BRUISED RIBS IN THE PAIRS COMPETITION BUT MR. HAMILTON'S POWERS PALE BESIDE THOSE OF TAMARA MOSKVINA COACH OF THE GOLD MEDAL PAIRS WINNERS AT ALBERTVILLE AFTER HER SKATERS SUFFERED THROUGH A MISERABLE PRACTICE SHE ASSURED C. B. S. CAMERAS THAT SHE WOULD HYPNOTIZE THEM BEFORE THEY SKATED SHE DECLARED THAT THE HYPNOTISM HAD WORKED AND THEY SKATED BRILLIANTLY THE U. S. JAPAN TRADE DISPUTE SENT THE DOLLAR PLUNGING ALMOST FOUR PERCENT AGAINST THE YEN TRADERS AND INVESTORS SPECULATED THAT THE CLINTON ADMINISTRATION WILL TRY USING A STRONGER YEN TO PROD JAPAN TO OPEN ITS MARKETS MORE EXPANSIVELY TO U. S. GOODS FOLLOWING THE COLLAPSE OF LAST WEEK'S TRADE TALKS U. S. OFFICIALS SAID THEY DIDN'T INTEND TO JAWBONE THE YEN HIGHER BUT TRADERS AND ANALYSTS RETORTED THAT IT DIDN'T MATTER QUOTE THE U. S. DOESN'T HAVE TO TALK THE DOLLAR DOWN THE CURRENCY MARKET IMPLICITLY BELIEVES THIS IS WHAT WASHINGTON WANTS SO THE ADMINISTRATION HAS TO JUST SIT BACK AND LET THIS HAPPEN SAID MICHAEL R. ROSENBERG AN INTERNATIONAL ECONOMIST AT MERRILL LYNCH AND COMPANY IN NEW YORK ON MONDAY NIGHT ON THE HEELS OF THE DOLLAR'S SHARP FALL THE U. S. TREASURY SAID THAT EXCHANGE RATE POLICY WAS UNCHANGED THE DOLLAR SHOWED LITTLE IMMEDIATE RESPONSE IN TOKYO TRADING HOWEVER UNLESS THE MARKET COMES TO BELIEVE THAT THE ADMINISTRATION FEELS THE DOLLAR HAS FALLEN FAR ENOUGH SOME TRADERS AND ECONOMISTS PREDICTED THE U. S. CURRENCY COULD TUMBLE BELOW ONE HUNDRED YEN I THINK THERE IS A GOOD POSSIBILITY THE DOLLAR COULD FALL BELOW NINETY FIVE YEN SAID LAWRENCE A. VEIT AN INTERNATIONAL ECONOMIST AT BROWN BROTHERS HARRIMAN AND COMPANY IN NEW YORK WE HAVE AN EXTRAORDINARY NONMEETING OF MINDS ON THE TRADE ISSUE THE JAPANESE DON'T FEEL THEY ARE RESPONSIBLE FOR THE U. S. TRADE DEFICIT THE U. S. FEELS THE JAPANESE ARE RESPONSIBLE BUT ANYBODY WITH EXPERIENCE IN DOING BUSINESS WITH JAPAN KNOWS THEIR MARKETS AREN'T AS OPEN TO US AS OURS ARE TO THEM HE ADDED ONE OF THE FEW LEVERS THE U. S. CAN USE TO PUT PRESSURE ON JAPAN IS TO CAUSE THE DOLLAR TO DEPRECIATE AGAINST THE YEN IN LATE NEW YORK TRADING MONDAY THE DOLLAR WAS QUOTED AT ONE HUNDRED TWO POINT SIX FIVE YEN WELL BELOW ONE HUNDRED SIX POINT EIGHT FIVE YEN LATE FRIDAY THE POST WORLD WAR TWO LOW WAS ONE HUNDRED POINT FOUR OH YEN TO THE DOLLAR SET AUGUST SEVENTEENTH SO FAR THIS YEAR THE DOLLAR IS OFF EIGHT PERCENT AGAINST JAPAN'S CURRENCY THE DOLLAR ALSO FELL TO ONE POINT SEVEN TWO SEVEN THREE MARKS IN NEW YORK MONDAY FROM ONE POINT SEVEN FIVE FOUR THREE MARKS LATE FRIDAY ALMOST ALL MAJOR CURRENCIES ROSE AGAINST THE DOLLAR MONDAY THE POUND STRENGTHENED TO ONE POINT FOUR EIGHT FOUR OH DOLLARS FROM ONE POINT FOUR SIX TWO FIVE DOLLARS BEFORE THE WEEKEND THE DOLLAR BEGAN FALLING FRIDAY AFTER TRADE TALKS IN WASHINGTON BETWEEN PRESIDENT CLINTON AND PRIME MINISTER MORIHIRO HOSOKAWA COLLAPSED THE U. S. WANTS TO REDUCE ITS HUGE TRADE DEFICIT WITH JAPAN BY SETTING SPECIFIC NUMERICAL TRADE TARGETS SOMETHING THE JAPANESE REFUSE TO DO ON MONDAY LAURA TYSON THE HEAD OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS SAID THE DOLLAR'S DECLINE SHOULDN'T HAVE A SIGNIFICANT IMPACT ON U. S. PRICES TRADERS INTERPRETED HER REMARKS AS MEANING THAT THE ADMINISTRATION HAD NO PROBLEM WITH THE U. S. CURRENCY'S PLUNGE DURING THE NEW YORK TRADING DAY THE CLINTON ADMINISTRATION WATCHED PASSIVELY AS THE DOLLAR FELL AGAINST THE YEN IT DIDN'T SHOW UNUSUAL CONCERN THE ADMINISTRATION'S STRATEGY WAS DETERMINED TO MAINTAIN QUOTE RADIO SILENCE QUOTE AND NOT COMMENT ON THE YEN'S ACTIVITY A TREASURY OFFICIAL SAID ON MONDAY NIGHT IN WASHINGTON HOWEVER THE TREASURY ISSUED ITS STATEMENT HOPING TO CALM THE FOREIGN EXCHANGE MARKETS THE STATEMENT ATTRIBUTED TO A SENIOR TREASURY OFFICIAL AND RELEASED JUST IN TIME FOR THE TUESDAY OPENING OF THE TOKYO MARKETS SAID OUR EXCHANGE RATE POLICY IS UNCHANGED FROM THAT ALREADY ARTICULATED BY TREASURY SECRETARY LLOYD BENTSEN WE DO NOT BELIEVE IN ARTIFICIALLY MANIPULATING EXCHANGE RATES AT MIDDAY TUESDAY IN TOKYO AFTER THE STATEMENT'S RELEASE THE DOLLAR STOOD AT ONE HUNDRED TWO POINT FOUR EIGHT YEN OFF SLIGHTLY FROM THE NEW YORK QUOTE OF ONE HUNDRED TWO POINT SIX FIVE YEN THE STEEPNESS OF MONDAY'S DECLINE CAUGHT THE MARKET BY SURPRISE THE BAD WEATHER IN NEW YORK PREVENTED PEOPLE FROM SELLING DOLLARS ON FRIDAY SAID JULIAN SYMMONS HEAD TRADER AT CITIBANK IN LONDON HE WARNED THAT MANY INSTITUTIONAL INVESTORS THAT HAD BEEN FUNDING THEIR PURCHASES OF FOREIGN NON JAPANESE BONDS BY BORROWING YEN AT LOW INTEREST RATES COULD BE HURT BY THE SUDDEN STEEP RISE IN JAPAN'S CURRENCY BUT THE BIGGEST DAMAGE COULD BE TO JAPAN'S ECONOMY IT'S GOING TO HURT THE JAPANESE ECONOMY PREDICTED MERRILL LYNCH'S MR. ROSENBERG TRADE ADJUSTMENT IF IT'S GOING TO SUCCEED IN THE LONG RUN HAS TO CAUSE PAIN IF THERE'S NO PAIN THERE'S NO ADJUSTMENT HE ADDED THAT TO AMELIORATE THE IMPACT OF THE STRONGER YEN ON JAPAN'S ECONOMY THE COUNTRY'S CENTRAL BANK MIGHT CUT ITS KEY DISCOUNT RATE ONE POINT TWO FIVE PERCENT OR EVEN ONE PERCENT FROM ITS CURRENT ONE POINT SEVEN FIVE PERCENT QUOTE ANYWHERE THAT JAPAN COMPETES GLOBALLY EITHER IN JAPAN OR ABROAD THE STRONGER YEN IS GOING TO HURT JAPANESE COMPETITIVENESS QUOTE SAID MR. VEIT OF BROWN BROTHERS HARRIMAN IT'S GOING TO SEVERELY DAMAGE THE MANUFACTURING SECTOR REFERRING TO TOKYO'S RECENTLY ANNOUNCED ONE HUNDRED FORTY BILLION DOLLARS TO ONE HUNDRED FIFTY BILLION DOLLAR PROGRAM TO STIMULATE ITS MORIBUND ECONOMY CITIBANK'S MR. SYMMONS SAID ALL THE BENEFIT JAPAN HOPED TO GET VIA FISCAL STIMULUS BY PUMPING MONEY INTO THE ECONOMY IS NEGATED BY THE STRONG YEN THE MIGHTIER YEN ALSO IS DEVALUING THE PORTFOLIOS OF JAPANESE INSTITUTIONAL INVESTORS WHICH SINCE JANUARY NINETEEN EIGHTY SIX HAVE MADE NET PURCHASES OF ABOUT FIVE HUNDRED SEVENTY BILLION DOLLARS OF FOREIGN STOCKS AND BONDS ACCORDING TO HIGH FREQUENCY ECONOMICS A NEW YORK ECONOMIC CONSULTING FIRM THAT MEANS THAT EACH ONE YEN RISE AGAINST THE DOLLAR EQUALS ROUGHLY A LOSS OF SIX BILLION DOLLARS TO THESE INSTITUTIONS IN THE VALUE OF THEIR FOREIGN SECURITIES HOLDINGS SAID CARL WEINBERG THE FIRM'S CHIEF ECONOMIST THUS JAPAN'S LIFE INSURANCE COMPANIES TRUST BANKS AND OTHER BIG INVESTORS HAVE SEEN THEIR PORTFOLIOS SHRINK BY MORE THAN THIRTY BILLION DOLLARS JUST SINCE THURSDAY THEORETICALLY A STRONGER YEN SHOULD EVENTUALLY HELP REDUCE JAPAN'S HUGE TRADE SURPLUS WITH THE U. S. BY INCREASING THE COSTS OF JAPANESE PRODUCTS AND LOWERING THE PRICES OF U. S. GOODS ESPECIALLY IN THIRD MARKETS NEITHER THE U. S. NOR JAPAN A STRONGER YEN IS THE EQUIVALENT TO HIGHER TARIFFS ON JAPANESE EXPORTS TO THE U. S. AND IS THE EQUIVALENT TO A SUBSIDY ON U. S. EXPORTS TO JAPAN SAID MR. ROSENBERG OF MERRILL LYNCH INFLATION FACTOR FOR U. S. ALTHOUGH NOT AN IMMEDIATE CONCERN A WEAK DOLLAR COULD ALSO CONTRIBUTE TO U. S. INFLATION THAT'S BECAUSE AMERICAN MANUFACTURERS MIGHT USE THE HIGHER PRICES ON JAPANESE PRODUCTS AS AN EXCUSE TO RAISE THEIR OWN PRICES A WEAKER DOLLAR COULD ALSO HAVE A SIGNIFICANT IMPACT ON U. S. AND JAPANESE STOCK PRICES CORPORATE EARNINGS AND THE VALUE OF U. S. INVESTORS' HOLDINGS OF JAPANESE STOCKS AND BONDS BY MAKING THEM MORE COMPETITIVE AND BY MAKING THEIR SALES AND EARNINGS IN JAPAN WORTH MORE WHEN TRANSLATED INTO DOLLARS A FALLING DOLLAR CAN FATTEN U. S. COMPANIES' BOTTOM LINES IMPROVED EARNINGS IN TURN CAN BOOST STOCK PRICES OF SOME MAJOR U. S. MULTINATIONAL CORPORATIONS A WEAKER DOLLAR ALSO INCREASES THE VALUE OF A U. S. INVESTOR'S JAPANESE PORTFOLIO THAT'S BECAUSE JAPANESE STOCKS AND BONDS WILL BE WORTH MORE WHEN TRANSLATED INTO U. S. CURRENCY BY CONTRAST A WEAKER DOLLAR CAN DAMAGE THE EARNINGS OF JAPANESE COMPANIES BY HURTING SALES AND MAKING THOSE SALES WORTH LESS IN YEN TERMS THAT CAN LEAD TO LOWER STOCK PRICES THAT'S EXACTLY WHAT HAPPENED YESTERDAY WHEN THE TOKYO STOCK MARKET FELL ONE POINT SIX THREE PERCENT AS MEASURED BY THE JAPANESE PORTION OF THE DOW JONES WORLD STOCK INDEX BUT BECAUSE OF THE YEN'S STEEP ASCENT TOKYO SHARES WERE UP TWO POINT FOUR FIVE PERCENT IN DOLLAR TERMS SO FAR THIS YEAR THE DOW JONES EQUITY MARKET INDEX FOR JAPAN IS UP TEN POINT ONE PERCENT IN YEN AND NINETEEN POINT NINE PERCENT IN DOLLARS MAJOR SUPPORT FOR THE YEN COMES FROM JAPAN'S TRADE SURPLUS WHICH MR. WEINBERG OF HIGH FREQUENCY ECONOMICS ESTIMATES IS RUNNING AT ABOUT ONE HUNDRED TWENTY BILLION DOLLARS A YEAR ROUGHLY HALF IS ATTRIBUTABLE TO THE U. S. HE SAYS IN ADDITION HE NOTED THAT QUOTE JAPANESE INSTITUTIONS HAVE CUT BACK THEIR PURCHASES OF FOREIGN SECURITIES QUOTE PURCHASES THAT OTHERWISE WOULD HAVE HELPED TO WEAKEN THE YEN WHAT'S MORE SAYS MR. ROSENBERG OF MERRILL LYNCH THE YEN HAS FALLEN BELOW ITS TWO HUNDRED DAY MOVING AVERAGE AGAINST THE DOLLAR THAT MEANS THE MANY TRADERS AND INVESTORS WHO USE CHARTS TO PREDICT CURRENCY MOVEMENTS WILL BE BUYING THE CURRENCY NONETHELESS SOME TRADERS WARNED INVESTORS AGAINST BETTING THAT RIDING THE YEN HIGHER WAS A SMOOTH JOURNEY TO FATTER PROFITS ANY STATEMENT BY FED OR TREASURY OFFICIALS THAT THEY DON'T WANT THE YEN TO CLIMB ANY FURTHER COULD GET YOU A QUICK REVERSAL BECAUSE THERE ARE LOT OF PEOPLE SHORT DOLLARS OUT THERE SAID PAT MAGILL CHIEF CORPORATE DEALER AT DAIWA EUROPE BANK LIMITED IN LONDON TRADERS SAID THAT THE BANK OF JAPAN SOLD YEN AND BOUGHT DOLLARS DURING EARLY ASIAN TRADING TO TRY TO HALT THE YEN'S RISE BUT ANALYSTS DISAGREE ABOUT HOW SERIOUS WAS THE INTERVENTION EFFORT THEY ALSO DISAGREE ABOUT WHETHER JAPANESE CENTRAL BANK INTERVENTION CAN HAVE ANY LASTING IMPACT ON THE DOLLAR YEN EXCHANGE RATE LAST YEAR THE TREASURY INTERVENED IN APRIL AND IN AUGUST TO STOP A RISE IN THE YEN THE COORDINATED SUMMER INTERVENTION BY JAPAN AND THE U. S. CAME WHEN THE YEN HIT A POSTWAR HIGH TRADERS ARE BETTING THE U. S. WON'T BE AS QUICK TO INTERVENE THIS TIME THOUGH AT THIS POINT GIVEN THE ADMINISTRATION'S DISAPPOINTMENT WITH JAPAN I THINK THEY'LL BE MUCH SLOWER TO MOVE AGAINST A HIGH YEN SAYS STEPHEN ROACH SENIOR U. S. ECONOMIST AT MORGAN STANLEY AND COMPANY KENNETH H. BACON CONTRIBUTED TO THIS ARTICLE THE EUROPEAN UNION COMMISSION SAID YESTERDAY THAT IT WILL STUDY A PLAN BY FORD MOTOR COMPANY TO ACQUIRE CONTROL OF HERTZ CORPORATION BY INCREASING ITS SHAREHOLDING FORD ALREADY OWNS FORTY NINE PERCENT OF THE WORLD WIDE CAR RENTAL COMPANY A FORD SPOKESMAN IN THE U. S. SAID COMMERZBANK OF GERMANY WANTS TO SELL ITS FIVE PERCENT STAKE IN HERTZ TO FORD CLEARANCE BY THE E. U. AGENCY IS REQUIRED FORD SAID THE FEDERAL TRADE COMMISSION CLEARED THE PROPOSAL LAST YEAR IN A NOTICE IN THE E. U.'S OFFICIAL JOURNAL DATED FEBRUARY TWELFTH THE COMMISSION SAID FORD'S PLAN MAY FALL UNDER THE JURISDICTION OF THE E. U.'S MERGER RULES UNDER THOSE RULES THE AGENCY HAS FOUR WEEKS TO DECIDE WHETHER THE PLAN COULD HARM COMPETITION IN E. U. MARKETS IF IT FINDS QUOTE SERIOUS DOUBTS QUOTE ABOUT THE TRANSACTION IT MUST OPEN A DEEPER FOUR MONTH INVESTIGATION THE COMMISSION CAN ALTER OR BLOCK SUCH TRANSACTIONS IF THEY WOULD WEAKEN COMPETITION THE COMMISSION GAVE COMPETITORS UNTIL FEBRUARY TWENTY SECOND TO COMMENT PITNEY BOWES INCORPORATED A MAKER OF MAILING MACHINES AND OTHER OFFICE PRODUCTS BOOSTED ITS QUARTERLY DIVIDEND SIXTEEN PERCENT TO TWENTY SIX CENTS A SHARE FROM TWENTY TWO POINT FIVE CENTS PAYABLE MARCH TWELFTH TO SHARES OF RECORD FEBRUARY TWENTY FIFTH THE STAMFORD CONNECTICUT COMPANY SAID THE INCREASE REFLECTS QUOTE CONTINUED CONFIDENCE IN OUR STRATEGIC DIRECTION AND FINANCIAL SOUNDNESS QUOTE ORACLE SYSTEMS CORPORATION SAID IT PLANNED TO INTRODUCE THREE PRODUCT LINES TO SUPPORT THE DELIVERY OF MOVIES INFORMATION AND OTHER ELECTRONIC SERVICES OVER THE SO CALLED INFORMATION HIGHWAY ORACLE BASED IN REDWOOD CITY CALIFORNIA SAID IT WILL WORK WITH AT LEAST SEVENTEEN MEDIA COMUNICATIONS AND ELECTRONICS COMPANIES TO PUSH ITS SOFTWARE TECHNOLOGY AS A STANDARD FOR MANAGING DATA ON THE INFORMATION HIGHWAY ORACLE'S PLANS FOR THIS EMERGING BUSINESS ARE WELL KNOWN THE MOST PROMINENT OF ITS PARTNERSHIPS ALREADY HAVE BEEN ANNOUNCED BUT ANALYSTS SAID THE STOCK ROSE ONE DOLLAR TO THIRTY TWO DOLLARS AND SEVENTY FIVE CENTS IN NASDAQ STOCK MARKET TRADING IN RESPONSE TO FURTHER DETAILS ORACLE WHICH SELLS AND SERVICES DATABASE SOFTWARE IS EXPECTED TO FACE STIFF COMPETITION FROM MICROSOFT CORPORATION AND OTHERS BENT ON SUPPLYING MULTIMEDIA SOFTWARE BUT SO FAR ORACLE HAS BEEN THE MOST AGGRESSIVE IN STAKING A CLAIM OVER THIS INFANT MARKET LAST WEEK THE COMPANY SAID IT WOULD WORK WITH APPLE COMPUTER INCORPORATED TO PRODUCE T. V. SET TOP BOXES FOR USE BY CABLE CUSTOMERS IN JANUARY THE COMPANY SAID IT WILL SUPPLY BELL ATLANTIC CORPORATION WITH MULTIMEDIA SOFTWARE AND SERVICES A NEW BREED OF RETAIL PIONEER IS HEADING FOR A PROMISING FRONTIER DOWNTOWN HAVING DESERTED CENTER CITIES OVER THE PAST TWENTY YEARS RETAILERS ARE NOW BEING DRAWN BACK BY THE SAME FACTORS THAT LURED THEM TO THE SUBURBS REASONABLE REAL ESTATE PRICES AND PLENTY OF POTENTIAL CUSTOMERS MOREOVER URBAN DEVELOPERS SAY A DOWNTOWN STORE THESE DAYS CAN GIVE A BIG RETAILER A MARKET ALL TO ITSELF THERE IS ANOTHER REASON VIRTUALLY ALL THE PRIME LOCATIONS IN MAJOR SUBURBAN MALLS ARE OCCUPIED SAYS RICHARD ETCHIKSON CHAIRMAN OF RETAIL CONSULTANTS INCORPORATED MILLBURN N. J. AND RENTS IN UNOCCUPIED MALL SPACE ARE VERY HIGH QUOTE MANY OF THE RETAILERS WHO WEREN'T INTERESTED IN THE CITY FIVE YEARS AGO ARE NOW ATTRACTED TO IT QUOTE MR. ETCHIKSON SAYS IN THE PAST THREE YEARS FILENE'S BASEMENT CORPORATION HAS OPENED DOWNTOWN STORES IN WASHINGTON NEW YORK AND PHILADELPHIA KMART CORPORATION SAYS IT'S HUNTING FOR A LOCATION IN DETROIT THOUGH THE COMPANY'S TROY MICHIGAN HEADQUARTERS IS ONLY EIGHT MILES NORTH OF DETROIT KMART HASN'T BUILT A NEW STORE IN THE MOTOR CITY IN MORE THAN TWO DECADES MONTGOMERY WARD AND COMPANY RECENTLY OPENED ONE OF ITS MODERATE PRICED DEPARTMENT STORES IN DOWNTOWN MINNEAPOLIS TOYS R. US INCORPORATED THE TOY SUPERSTORE SAYS FIVE OF THE FORTY U. S. STORES IT WILL OPEN THIS YEAR WILL BE IN URBAN AREAS CURRENTLY ONLY EIGHT OF ITS FIVE HUNDRED EIGHTY ONE U. S. STORES ARE IN CENTRAL CITIES AND TARGET STORES THE BIG DISCOUNT DIVISION OF DAYTON HUDSON CORPORATION IS PREPARING FOR THE MARCH THIRTEENTH OPENING OF A STORE ITS BIGGEST EVER IN DOWNTOWN PASADENA CALIFORNIA TARGET ALSO OPENED A STORE IN CENTRAL DALLAS LAST OCTOBER TODAY'S URBAN RETAIL PIONEERS AREN'T THE SAME ONES THAT LEFT FOR THE HINTERLANDS THE EXODUS FROM DOWNTOWN WAS LED BY DEPARTMENT STORES AND SMALLER SHOPS THE NEWCOMERS PREDOMINANTLY ARE LOW PRICED RETAILERS MANY OF WHOM NEVER HAD A FOOTHOLD IN CITIES BUT WHO NOW ARE FINDING A STRONG CUSTOMER BASE THERE OUR MERCHANDISE ASSORTMENT IS IN CAREER CLOTHING SAYS GARY CRITTENDEN CHIEF FINANCIAL OFFICER OF FILENE'S BASEMENT OUR CUSTOMERS WORK AND LIVE DOWNTOWN SO IT IS A NATURAL PLACE FOR US TO BE DOWNTOWN ALSO IS A PLACE TO GROW WITH ITS STORES ALREADY BLANKETING THE SUBURBS TOYS R. US MUST FIND NEW PLACES TO BUILD IF IT WANTS TO CONTINUE GAINING MARKET SHARE SAYS ROBERT NAKASONE VICE CHAIRMAN TO BE SURE OPENING CITY STORES PRESENTS CHALLENGES SUCH AS CRIME TIGHTER CONFINES AND DIFFERENT SHOPPING HABITS MONTGOMERY WARD SAYS CUSTOMERS AT ITS NEW DOWNTOWN MINNEAPOLIS STORE ARE MORE LIKELY TO BUY CLOTHING JEWELRY AND OFFICE PRODUCTS AND LESS PRONE TO BUY BIG APPLIANCES AS A RESULT A SPOKESWOMAN SAYS QUOTE WE'RE WORKING TO MAKE THE STORE'S OFFERINGS APPROPRIATE FOR THAT ENVIRONMENT QUOTE THE NEW DOWNTOWN RETAILERS ALSO ARE SCHEDULING MORE SALES CLERKS TO WORK DURING LUNCH TIME AND AT QUITTING TIME AND ARE STAFFING LIGHTLY IN THE EVENING AND ON WEEKENDS EVENINGS MAY BE SLOW SAYS TOYS R. US'S MR. NAKASONE BUT LUNCH TIME DOWNTOWN EVERY DAY IS LIKE THE CHRISTMAS SHOPPING SEASON DOWNTOWN STORES' DESIGN AND LOGISTICS CAN REQUIRE EXTRA WORK OFTEN REQUIRING RETAILERS TO ALTER SINGLE LEVEL SUBURBANMALL PROTOTYPES TO FIT THE SPACE AVAILABLE TARGET'S THREE STORY PASADENA STORE WILL BE ITS FIRST MULTILEVEL OUTLET TARGET HAS INSTALLED FOUR OVERSIZED ELEVATORS AND ESCALATORS WITH STEPS DEEP ENOUGH TO ACCOMMODATE SHOPPING CARTS TOYS R. US'S STORE IN DOWNTOWN CHICAGO WHICH ALSO OCCUPIES THREE FLOORS CAN ACCEPT DELIVERIES ONLY BETWEEN SIX THIRTY P. M. AND SIX A. M. BECAUSE OF TRAFFIC RESTRICTIONS THE STORE THUS KEEPS ITS STOCKROOM OPEN ALL NIGHT TO RECEIVE INVENTORY THE FEAR OF URBAN CRIME IS ANOTHER CHALLENGE THE DEVELOPERS OF TARGET'S DOWNTOWN DALLAS STORE SOUGHT TO THWART CRIME BY LIGHTING THE PARKING LOT TO EIGHT TIMES THE INDUSTRY'S STANDARD LEVEL THE DEVELOPERS ALSO WERE CAREFUL NOT TO PLACE PUBLIC TELEPHONES IN OUT OF THE WAY PLACES THESE TIPS CAME FROM CONSULTATIONS WITH THE DALLAS POLICE DEPARTMENT AT TOYS R. US'S DOWNTOWN CHICAGO STORE CUSTOMERS HEADING FOR THE MAIN SELLING FLOOR MUST FIRST GO UP OR DOWN AN ESCALATOR MOVE THROUGH A SUBSIDIARY SELLING FLOOR AND TAKE ANOTHER ESCALATOR TO THE MAIN FLOOR A SECURITY DESK WATCHES OVER EXITS FROM THE MAIN FLOOR ASIDE FROM THE ADDED SECURITY TOYS R. US SAYS THIS TRAFFIC FLOW FORCES CUSTOMERS TO ENCOUNTER MERCHANDISE IN THE SAME ORDER THAT THEY WOULD IF THEY WERE BREEZING THROUGH A SUBURBAN STORE NEITHER TOYS R. US NOR TARGET HAS EXPERIENCED ANY SIGNIFICANT CRIME IN THEIR CITY STORES OFFICIALS SAY PAYING FOR THESE ADDITIONAL DESIGN LOGISTICS AND SECURITY MEASURES IS MORE AFFORDABLE FOR URBAN RETAILERS THESE DAYS BECAUSE OCCUPANCY COSTS IN MANY DOWNTOWNS HAVE DECLINED IN THE PAST THREE YEARS FOR EXAMPLE THE COMPANY DEVELOPING THE PROPERTY WHERE TARGET HAS ITS DOWNTOWN DALLAS STORE PAID FORTY FIVE MILLION DOLLARS FOR THE PROPERTY LESS THAN A FIFTH OF WHAT ITS PRIOR OWNER PAID TO ASSEMBLE THE SITE IN THE EARLY NINETEEN EIGHTIES THE CHEAPER REAL ESTATE ALLOWS THE DEVELOPER CITYPLACE COMPANY TO CHARGE TARGET A RENTAL RATE NEARLY AS LOW AS WHAT TARGET PAYS IN THE DALLAS SUBURBS BETWEEN THREE DOLLARS AND TEN DOLLARS A SQUARE FOOT PER YEAR SAYS NEAL SLEEPER CITYPLACE PRESIDENT MR. SLEEPER SAYS CITYPLACE HAS ANOTHER ATTRACTION FOR TARGET THE STORE WON'T HAVE TO WORRY ABOUT ANY OF ITS BIG CHAIN COMPETITORS SHOWING UP SOON BECAUSE SURROUNDING SPACE IS OCCUPIED HE SAYS QUOTE THERE'S NO PLACE FOR ANYBODY ELSE TO COME QUOTE GARNERING AN EXCLUSIVE FRANCHISE LOCKED KMART AND WAL MART STORES INCORPORATED IN A YEAR LONG COMPETITION FOR A PARCEL IN KANSAS CITY MISSOURI THE VICTOR KMART WILL BE THE ONLY BIG DISCOUNTER WITHIN FIVE MILES OF THE PROPERTY SAYS STEPHEN G. BLOCK AN EXECUTIVE OF THE COMPANY THAT IS DEVELOPING THE SITE ASSEMBLING THIS KIND OF SITE AGAIN IN THIS AREA IS GOING TO BE EXTREMELY DIFFICULT FOR A RETAILER SAYS MR. BLOCK KMART KIND OF HAS A MONOPOLY HERE BY DEFAULT AS RETAILERS REDISCOVER THE CITY THEY ARE HELPING TO REVITALIZE AREAS THAT OFTEN HAVEN'T RESPONDED TO GOVERNMENT SPONSORED INITIATIVES BUT IT ISN'T ALTRUISM THAT'S AT WORK SAYS A TARGET SPOKESWOMAN BOTTOM LINE IS WE FELT WE COULD BE PROFITABLE VIACOM APPEARED TO GAIN VICTORY IN THE FIVE MONTH TAKEOVER BATTLE FOR PARAMOUNT BY MID EVENING VIACOM'S OFFER OF ROUGHLY TEN BILLION DOLLARS HAD ATTRACTED MORE THAN SIXTY PERCENT OF PARAMOUNT'S SHARES TWO PEOPLE FAMILIAR WITH THE COUNT SAID WELL IN EXCESS OF THE FIFTY POINT ONE PERCENT NEEDED TO BEAT Q. V. C. BARRING LAST MINUTE CHANGES IN THE COUNT UNEXPECTED WITHDRAWALS BY SHAREHOLDERS OR A Q. V. C. COURT CHALLENGE THE BIDDING RULES REQUIRE Q. V. C. TO BOW OUT THE DOLLAR PLUNGED NEARLY FOUR PERCENT AGAINST THE YEN AMID SPECULATION THAT THE CLINTON ADMINISTRATION WILL TRY USING A STRONGER YEN TO PROD A JAPANESE MARKET OPENING BUT LAST NIGHT THE U. S. ISSUED A STATEMENT THAT ITS POLICY HASN'T CHANGED AND THAT IT DOESN'T ENDORSE MANIPULATING EXCHANGE RATES THE WHITE HOUSE IS PREPARING A TWO PRONGED TRADE ATTACK DECIDING TO RENEW THE TOUGH SUPER THREE HUNDRED ONE TRADE PROVISION AND PLANNING TRADE SANCTION PROCEEDINGS OVER CELLULAR TELEPHONES MOST OF CORPORATE AMERICA HOWEVER DOESN'T WANT A TRADE WAR WITH JAPAN THAT THREATENS TO FLARE OUT OF CONTROL TOKYO STOCKS TUMBLED TWO POINT SEVEN PERCENT MONDAY AFTER THE FAILURE OF U. S. JAPAN TRADE TALKS SENT THE YEN SOARING AND FELL A FURTHER THREE POINT ONE PERCENT TUESDAY MORNING THE JUSTICE DEPARTMENT OPPOSED A. T. AND T.'S REQUEST FOR A WAIVER THAT WOULD CLEAR AN OBSTACLE TO ITS PROPOSED PURCHASE OF MCCAW BUT THE MOVE WON'T NECESSARILY BLOCK THE PLAN G. E. AND HONEYWELL WERE ACCUSED BY TWO UNIONS OF FIRING MEXICAN WORKERS FOR TRYING TO ORGANIZE INTO LABOR UNIONS IN THE FIRST COMPLAINTS FILED UNDER NAFTA'S LABOR SIDE AGREEMENT BANC ONE'S AGREEMENT TO BUY FIRSTIER FINANCIAL FELL APART LARGELY AS A RESULT OF A SLIDE IN BANC ONE'S STOCK BUSINESS INVENTORIES HELD STEADY IN DECEMBER AND SALES ROSE ZERO POINT EIGHT PERCENT FOR ALL OF NINETEEN NINETY THREE STOCKPILES WERE UP THREE PERCENT WHILE SALES INCREASED A MORE ROBUST FIVE POINT FOUR PERCENT EMPLOYER COSTS FOR PRESCRIPTION DRUG BENEFITS JUMPED FIFTEEN PERCENT LAST YEAR ABOUT TWICE THE RATE OF OVERALL HEALTH PLAN EXPENSES A SURVEY FOUND DUFF AND PHELPS PLANS TO SPIN OFF ITS CREDIT RATING OPERATION A MOVE THAT WOULD FREE THE PARENT COMPANY FROM CONFLICT OF INTEREST CONCERNS THAT BLOCK IT FROM MANAGING MUTUAL FUNDS AOKI TENTATIVELY AGREED TO SELL MUCH OF ITS WESTIN HOTELS AND RESORTS TO AN INVESTOR GROUP FOR SEVEN HUNDRED EIGHT MILLION DOLLARS LLOYD'S OF LONDON INVESTORS REJECTED A ONE POINT THREE BILLION DOLLAR SETTLEMENT OFFER INCREASING CHANCES OF A COSTLY LEGAL BATTLE OVER LOSSES THE INVESTORS INCURRED IN THE INSURANCE MARKET A. T. AND T. HIRED PIER CARLO FALOTTI A COMPUTER EXECUTIVE TO RUN ITS EUROPE MIDDLE EAST AND AFRICA OPERATIONS RETAILERS ARE RETURNING TO DOWNTOWN URBAN AREAS REVERSING A TWENTY YEAR SHIFT TO SUBURBAN MALLS KMART MONTGOMERY WARD AND TOYS QUOTE R. QUOTE US ARE AMONG THE FIRMS OPENING STORES IN CITIES SEEKING REASONABLE REAL ESTATE RATES AND LOTS OF POTENTIAL CUSTOMERS BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED THIRTY FOUR POINT FIVE SIX OFF EIGHT POINT THREE ONE COMMODITIES OIL FOURTEEN DOLLARS AND THIRTEEN CENTS A BARREL OFF FIFTY NINE CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY FIVE POINT OH THREE UP ZERO POINT SIX SEVEN SPOT INDEX ONE HUNDRED THIRTY POINT FIVE SIX OFF ZERO POINT ZERO FOUR DOLLAR ONE HUNDRED TWO POINT SIX FIVE YEN OFF FOUR POINT TWO OH ONE POINT SEVEN TWO SEVEN THREE MARKS OFF ZERO POINT ZERO TWO SEVEN ZERO GENERAL PUBLIC UTILITIES CORPORATION PARSIPPANY N. J. SAID IT PLANS A REORGANIZATION TO SEPARATE POWER GENERATION FROM DISTRIBUTION ACTIVITIES AND CUT COSTS THE UTILITY HOLDING COMPANY SAID IT WILL CREATE A NEW UNIT G. P. U. GENERATION CORPORATION IN JOHNSTOWN PENNSYLVANIA TO OPERATE GENERATING STATIONS FORMERLY OWNED OR OPERATED BY ITS METROPOLITAN EDISON PENNSYLVANIA ELECTRIC AND JERSEY CENTRAL POWER AND LIGHT UNITS THE COMPANY ALSO PLANS TO COMBINE THE POWER TRANSMISSION DISTRIBUTION AND CUSTOMER SERVICE FUNCTIONS OF MET ED AND PENNSYLVANIA ELECTRIC ALTHOUGH THE TWO COMPANIES WON'T BE MERGED THE REALIGNMENT WILL RESULT IN QUOTE SIGNIFICANT REDUCTION QUOTE IN PAYROLL SAID CHAIRMAN JAMES R. LEVA G. P. U.'S ACTIONS ARE SIMILAR TO OTHER UTILITIES' RESPONSES TO COMPETITION AND CHANGING REGULATION COMPANIES HAVE BEEN TRYING TO SEPARATE REGULATED FROM NONREGULATED BUSINESSES AS WELL AS POWER GENERATION OPERATIONS FROM POWER DISTRIBUTION SUPPOSE YOU'RE STARTING OUT TO INVEST IN THE MARKET FOR THE FIRST TIME YOU WANT TO BE SAFE BUT YOU'D ALSO LIKE TO MAKE A LITTLE MONEY YOU'VE ALWAYS HEARD THAT BONDS WERE THE SAFE THING TO BUY BUT YOU'VE ALSO HEARD THAT STOCKS ALWAYS REPEAT ALWAYS PAY A BETTER RETURN THAN BONDS SO HOW ABOUT STOCKS THE DOW JONES INDUSTRIAL AVERAGE YOU'VE HEARD IS MADE UP OF HIGH GRADE STOCKS THE SORT OF SECURITIES THAT EXPERIENCED INVESTORS CALL QUOTE BLUE CHIPS QUOTE SO WHAT CAN YOU GET ON BLUE CHIPS CONSULTING THE WALL STREET JOURNAL YOU FIND THAT THE AVERAGE DIVIDEND YIELD ON INDUSTRIAL AVERAGE STOCKS IS LESS THAN THREE PERCENT THAT'S PRETTY DISAPPOINTING THE JOURNAL HAS CLUED YOU IN TO THE FACT THAT BONDS YIELD MORE THAN TWICE THAT EVEN TREASURY BONDS ABOUT THE SAFEST INVESTMENT AROUND YIELD TWICE WHAT D. J. I. A. STOCKS DO WELL NOT TO WORRY THE KEY WORD IS RETURN NOT YIELD IF YOU BUY A ONE THOUSAND DOLLAR TREASURY BOND IT WILL STILL BE WORTH JUST ONE THOUSAND DOLLARS WHEN YOU CASH IT IN IF YOU INVEST ONE THOUSAND DOLLARS IN BLUE CHIP STOCKS THE STOCKS MAY BE WORTH A GOOD DEAL MORE WHEN YOU SELL THEM IF YOU BOUGHT AN AVERAGE D. J. I. A. STOCK A YEAR AGO IT WOULD NOW BE WORTH NEARLY TWENTY PERCENT MORE THAN YOU PAID FOR IT YOUR DIVIDEND YIELD MAY BE PIDDLING BUT THE TOTAL RETURN ON YOUR INVESTMENT HAS BEEN A HEALTHY TWENTY PERCENT PLUS IT'S OBVIOUS THAT MANY PEOPLE HAVE BEEN BUYING STOCKS IN THE PAST YEAR PUSHING THE INDUSTRIAL AVERAGE UP TO ONE NEW HIGH AFTER ANOTHER THE RISE WAS INTERRUPTED BY REACTION TO THE FEDERAL RESERVE'S INCREASE IN THE FEDERAL FUNDS RATE BUT MOST ANALYSTS EXPECT IT TO RESUME SOME OF THE STOCK BUYERS SURELY HAVE BEEN HOPING THAT THE BLUE CHIP COMPANIES SOON WILL RAISE THEIR DIVIDENDS MAKING THE DIVIDEND YIELD MORE ATTRACTIVE SOME INVESTORS AREN'T EXACTLY COMFORTABLE WITH THE IDEA THAT THEY WILL HAVE TO SELL THEIR STOCK AT JUST THE RIGHT TIME TO GET THE BEST POSSIBLE RETURN THIS COULD SPUR A BINGE OF PROFIT TAKING WHICH WOULD SEND PRICES TUMBLING THIS HAS BEEN ONE OF THE LONGEST BULL MARKETS SINCE WORLD WAR TWO AND SOME ANALYSTS THINK IT MAY BE ABOUT TIME FOR A CORRECTION DECLINING STOCK PRICES AT SOME POINT COULD SPUR A LOVE FOR BONDS IN A NATIONAL BUREAU OF ECONOMIC RESEARCH WORKING PAPER TWO CORNELL UNIVERSITY ECONOMISTS SHLOMO BENARTZI AND RICHARD THALER NOTE THAT SINCE NINETEEN TWENTY SIX THE AVERAGE INFLATION ADJUSTED RATE OF RETURN ON STOCKS HAS BEEN SEVEN PERCENT COMPARED WITH LESS THAN ONE PERCENT FOR TREASURY BILLS ONE OF THE LEAST RISKY OF ASSETS BUT THE STOCK MARKET HAS HAD LOTS OF UPS AND DOWNS IN THE PAST SIXTY EIGHT YEARS PART OF THE REASON FOR THE HUGE DISPARITY BETWEEN STOCKS AND DEBT ISSUES IS THAT COMPANIES MUST PERSUADE INVESTORS TO TAKE RISKS BY OFFERING THE LURE OF A HIGHER RETURN IN THE PAST YEAR THE RAPID RISE OF THE MARKET HAS EASED THIS PROBLEM FOR CORPORATIONS THE CORNELL ECONOMISTS COMMENT EMPIRICAL ESTIMATES OF LOSS AVERSION ARE TYPICALLY IN THE NEIGHBORHOOD OF TWO MEANING THE DISUTILITY OF GIVING SOMETHING UP IS TWICE AS GREAT AS THE UTILITY OF ACQUIRING IT BUT LOSS AVERSION ISN'T THE ONLY FACTOR AT WORK ACCORDING TO THE AUTHORS A LOT DEPENDS ON HOW OFTEN THE INVESTOR EXAMINES HIS PORTFOLIO HOW NERVOUS IS HE MENTALLY OR WITH PAPER AND PENCIL DOES HE EXAMINE HIS HOLDINGS EVERY WEEK EVERY MONTH EVERY YEAR EVERY DECADE THE FREQUENCY OF THESE EXAMINATIONS HELPS TO DETERMINE HOW MUCH RISK THE INVESTOR WILL ACCEPT IF HE IS STRICTLY A BUY AND HOLD INVESTOR HE MAY LOOK THE PURCHASE OVER PRETTY CAREFULLY BEFORE HE MAKES IT BUT THEN HE MAY PUT THE CERTIFICATE AWAY AND NOT EVEN THINK OF IT FOR YEARS HOWEVER IF HE IS THE SORT WHO FLIPS TO THE MARKET PAGES EVERY MORNING AND CAREFULLY CHECKS HOW HIS STOCKS ARE DOING ANY UNUSUAL VOLATILITY IS LIKELY TO TRIGGER A CALL TO HIS BROKER THE AUTHORS CONDUCT A VARIETY OF EXERCISES TO DETERMINE HOW OFTEN AN INVESTOR MUST EXAMINE HIS PORTFOLIO IF HE IS TO BE INDIFFERENT ABOUT WHETHER TO BUY STOCKS OR BONDS THEY CONCLUDE THAT THE INVESTOR WHO EXAMINES HIS HOLDINGS ABOUT ONCE A YEAR WOULDN'T CARE WHETHER HE HAD STOCKS OR BONDS IDEALLY THEY SUGGEST HE WILL HOLD ABOUT FIFTY PERCENT OF EACH THE AUTHORS CALL THE COMBINATION OF LOSS AVERSION AND A TENDENCY TO EXAMINE PORTFOLIOS FREQUENTLY MYOPIC LOSS AVERSION IF DIVIDEND YIELDS STAY LOW AND INVESTORS READ THE FINANCIAL PAGES A LITTLE MORE FREQUENTLY THERE'S LIKELY TO BE A LOT OF THAT GOING AROUND OHM CORPORATION FINDLAY OHIO REPORTED NET INCOME FOR THE FOURTH QUARTER AS INCREASING INCOME FROM GOVERNMENT PROJECTS ESPECIALLY SUPERFUND SITES OFFSET DECLINING REVENUE FROM THE PRIVATE SECTOR FOR THE QUARTER THE ENVIRONMENTAL REMEDIATION CONCERN EARNED ONE POINT ONE MILLION DOLLARS OR EIGHT CENTS A SHARE COMPARED WITH A YEAR EARLIER LOSS OF FIVE POINT FIVE MILLION DOLLARS OR FORTY SIX CENTS A SHARE REVENUE INCREASED THIRTY EIGHT PERCENT TO SEVENTY EIGHT POINT FOUR MILLION DOLLARS FROM FIFTY SIX POINT EIGHT MILLION DOLLARS OHM SAID ORDER BACKLOGS INCLUDING SOME CONTRACTS AWARDED IN EARLY NINETEEN NINETY FOUR ARE NOW MORE THAN ONE POINT ONE BILLION DOLLARS THE COMPANY HAD AN ORDER BACKLOG AT YEAR END OF ABOUT EIGHT HUNDRED FIFTY THREE MILLION DOLLARS UP FROM THREE HUNDRED SEVENTY ONE MILLION DOLLARS AT THE END OF NINETEEN NINETY TWO FOR THE YEAR OHM REPORTED NET OF FOUR POINT FOUR MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE COMPARED WITH A YEAR EARLIER LOSS OF FOUR POINT THREE MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE REVENUE INCREASED NINE POINT FIVE PERCENT TO TWO HUNDRED FORTY TWO POINT FOUR MILLION DOLLARS FROM TWO HUNDRED TWENTY ONE POINT FOUR MILLION DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY OHM CLOSED AT SIXTEEN POINT SIX TWO FIVE DOLLARS UP THIRTY SEVEN POINT FIVE CENTS A U. N. COMMANDER STEPPED UP PRESSURE ON BOSNIAN SERB FORCES THE U. N.'S MILITARY CHIEF FOR BOSNIA TOLD THE SERBS THEY MUST GIVE HIS FORCES IN SARAJEVO CONTROL OF THEIR HEAVY GUNS BY SUNDAY OR FACE NATO AIR STRIKES HIS STATEMENT EFFECTIVELY CLOSED THE GAP BETWEEN PLANS DEVELOPED BY THE U. N. AND NATO FOR ENDING FIGHTING IN BOSNIA THERE HAD BEEN SPECULATION THAT THE SERBS COULD EXPLOIT DIFFERENCES BETWEEN THE TWO PLANS TO DELAY WITHDRAWING THEIR WEAPONS THE SERB FORCES TURNED IN TWO MORE ARTILLERY PIECES BRINGING TO TWENTY EIGHT THE TOTAL THEY HAVE GIVEN UP SO FAR MORE THAN FIVE HUNDRED HEAVY WEAPONS ARE SAID TO RING THE BOSNIAN CAPITAL THE U. S. IS BACKING A PLAN THAT AIMS TO RESTORE DEMOCRACY IN HAITI BUT DOESN'T INCLUDE A FIRM DATE FOR THE RETURN OF OUSTED PRESIDENT ARISTIDE IN A WIDENING BREACH WITH ARISTIDE THE U. S. PLAN CALLS FOR HIS EVENTUAL RESTORATION AFTER HE NAMES A PRIME MINISTER AND A NEW GOVERNMENT TAKES CERTAIN ACTIONS THE COUNCIL OF ECONOMIC ADVISERS SAID A WIDENING GAP BETWEEN RICH AND POOR IN THE U. S. IS QUOTE A THREAT TO THE SOCIAL FABRIC QUOTE AND BLAMED TECHNOLOGY THE DECLINE OF UNIONS A LAGGING MINIMUM WAGE AND IMMIGRATION THE REPORT DESCRIBES AN ADMINISTRATION PHILOSOPHY THAT GOVERNMENT MUST PROMOTE ECONOMIC EXPANSION CLINTON PLEDGED THREE HUNDRED NINETY SIX MILLION DOLLARS IN NEW U. S. ECONOMIC AID TO KAZAKHSTAN TO HELP THE EX SOVIET REPUBLIC MOVE TO A MARKET ECONOMY AND DISMANTLE NUCLEAR ARMS CLINTON SAID HE PROMISED THE AID AFTER KAZAKHSTAN PRESIDENT NAZARBAYEV PRESENTED HIM WITH PAPERS DOCUMENTING THAT NATION'S DECISION IN DECEMBER TO BECOME A NONNUCLEAR STATE THE RUSSIAN NAVY ANNOUNCED IT IS MOTHBALLING THREE OF ITS FIVE AIRCRAFT CARRIERS BECAUSE IT NO LONGER CAN AFFORD TO KEEP THE VESSELS AFLOAT EACH OF THE THREE CARRIERS IS IN NEED OF AN OVERHAUL BUT RUSSIA LACKS A BIG ENOUGH SHIPYARD OR THE RESOURCES TO REPAIR THEM THEIR SIX HUNDRED TWENTY FOOT LONG FLIGHT DECKS CAN HANDLE ONLY VERTICAL TAKEOFF AIRCRAFT A TRADE GROUP FOR H. M. O.S IS JOINING THE CLINTON ADMINISTRATION'S EFFORT TO BOOST VACCINATION RATES AMONG U. S. CHILDREN TO NINETY PERCENT BY NINETEEN NINETY SIX THE GROUP HEALTH ASSOCIATION OF AMERICA SAID THAT MORE THAN TWO HUNDRED FIFTY H. M. O.S WILL BE PARTICIPATING IN THE NATIONWIDE PROJECT THE P. L. O. INSISTED THAT A FINAL DETAILED ACCORD WITH ISRAEL ON PALESTINIAN SELF RULE MUST INCLUDE FULL AMNESTY FOR PALESTINIAN PRISONERS IN ISRAELI HANDS AFTER A DAY OF P. L. O. ISRAELI TALKS IN EGYPT THE CHIEF P. L. O. NEGOTIATOR EMPHASIZED THE AMNESTY ISSUE BUT PREDICTED THAT DETAILS OF AN AGREEMENT COULD BE WRAPPED UP IN LESS THAN A MONTH ARMED MEXICAN REBELS AGREED TO RELEASE A FORMER CHIAPAS STATE GOVERNOR THEY HAVE BEEN HOLDING SINCE JANUARY SECOND A GOVERNMENT PEACE ENVOY SAID THE HOSTAGE GENERAL CASTELLANOS IS TO BE FREED TOMORROW AS A GESTURE OF GOODWILL THE GOVERNMENT ENVOY SAID THE MOVE APPARENTLY WOULD BRING THE TWO SIDES CLOSER TO LONG AWAITED PEACE TALKS CLINTON'S HEALTH PLAN SHOULD BE CHANGED TO ENSURE THAT GAY PEOPLE AREN'T DISCRIMINATED AGAINST EITHER AS DOCTORS OR PATIENTS THE NATIONAL GAY AND LESBIAN TASK FORCE SAID THE GROUP PRAISED THE PRESIDENT'S COMMITMENT TO UNIVERSAL COVERAGE BUT SAID HIS BILL SHOULD AMONG OTHER THINGS ADD SPECIFIC LANGUAGE BARRING DISCRIMINATION ZULU DEMONSTRATORS OPENED FIRE OUTSIDE THE CITY HALL IN A SOUTH AFRICAN PORT DURBAN AS THEIR KING MET WITH PRESIDENT DE KLERK AND SAID HIS SUBJECTS WERE PREPARED TO DEFY THE GOVERNMENT AND PROCLAIM THEIR OWN STATE KING GOODWILL ZWELITHINI INTERRUPTED HIS TALKS TO APPEAL FOR ORDER AFTER THE VIOLENCE ERUPTED ONE MAN WAS KILLED PERU'S FUJIMORI DISMISSED THE POSSIBILITY OF NEGOTIATING WITH GUERRILLA GROUPS AND VOWED TO ERADICATE THEM BEFORE HIS TERM EXPIRES IN NINETEEN NINETY FIVE THE PRESIDENT SPEAKING DURING AN OFFICIAL VISIT IN COLOMBIA SAID HE WOULD NEVER OFFER NEGOTIATED FREEDOM TO THE LEADER OF THE SHINING PATH REBELS GUZMAN WHO WAS CAPTURED IN NINETEEN NINETY TWO ETHNIC FIGHTING IN GHANA HAS GROWN INTO A VIRTUAL GUERRILLA WAR OVER THE PAST TWO WEEKS THAT HAS KILLED HUNDREDS AND PERHAPS THOUSANDS OF PEOPLE AND DESTROYED DOZENS OF VILLAGES IN THE NORTH MILITARY OFFICIALS SAID THE ATTACKS HAVE BEEN CARRIED OUT WITH POISONED ARROWS MACHETES AND AUTOMATIC WEAPONS THE OFFICIALS ADDED AN AGREEMENT COULD BE COMPLETED THIS SUMMER TO SET UP AN AMERICAN ACADEMY IN BERLIN MODELED ON THE CENTURY OLD AMERICAN ACADEMY IN ROME THE PROPOSAL BACKED BY THE U. S. CONGRESS AND THE SMITHSONIAN INSTITUTION IS INTENDED TO DEMONSTRATE THE U. S. COMMITMENT TO THE GERMAN CITY FOLLOWING THE U. S. TROOP WITHDRAWAL LATER THIS YEAR THE ACADEMY WOULD SUPPORT RESEARCH AND CREATIONS BY VISITING SCHOLARS ARTISTS WRITERS AND OTHERS IN THE HUMANITIES IT ALSO WOULD HAVE A CENTER FOR RESEARCH ON EASTERN EUROPEAN HISTORY AND CULTURE STEVEN MANSBACH A PROFESSOR AT THE CENTER FOR ADVANCED STUDIES IN THE VISUAL ARTS AT WASHINGTON'S NATIONAL GALLERY OF ART IS TO BE THE ACADEMY'S DIRECTOR THE PROJECT TO BE FUNDED BY PRIVATE AND CORPORATE SOURCES HAS BEEN COORDINATED FROM THE SMITHSONIAN OF THE FORTY FOUR MILLION DOLLAR ENDOWMENT NEEDED TO FUND OPERATIONS ABOUT TWO MILLION DOLLARS HAS BEEN COMMITTED AND MORE PLEDGES ARE CONTINGENT ON SECURING A PERMANENT HOME IN BERLIN AS FRENCH FISHERMEN WIDENED A TWO WEEK OLD STRIKE TO MEDITERRANEAN PORTS THE GOVERNMENT VOWED TO BLOCK FISH IMPORTS UNTIL JUNE THE FISHERMEN WHOSE PROTESTS OFTEN TURNED VIOLENT REQUESTED MORE AID FOR SMALLER OPERATORS HURT BY HIGH COSTS AND INEXPENSIVE FISH IMPORTS THE GOVERNMENT HAS GRANTED SEVENTY FIVE MILLION DOLLARS IN AID SO FAR FISHERMEN YESTERDAY SOUGHT TO BLOCK SHIPPING TRAFFIC IN SOME PASSENGER OIL AND FISHING PORTS WHILE FISHERMEN FROM BRITTANY STOPPED TRUCKS ON HIGHWAYS TO PARIS TO CHECK FOR IMPORTED FISH AND DUMPED SOME CARGOES THE U. S. SELLS ONE HUNDRED THIRTY MILLION DOLLARS OF FISH A YEAR IN FRANCE AT LEAST TWENTY FIVE PERCENT OF CHINESE MARRIED WOMEN HAVE HAD ONE ABORTION AND EIGHT PERCENT TWO OR MORE A SURVEY BY THE GOVERNMENT CONTROLLED ALL CHINA WOMEN'S FEDERATION FOUND SUCH DATA HADN'T BEEN AVAILABLE IN CHINA WHICH CONTROLS POPULATION GROWTH BY LIMITING COUPLES TO ONE CHILD CITIES WHERE BIRTH RATES ARE THE LOWEST HAD THE HIGHEST ABORTION RATES LOWER RATES IN RURAL AREAS REFLECT RELATIVELY MORE STERILIZATIONS AFTER COUPLES HAVE ONE CHILD AS CHILDBIRTH OUTSIDE MARRIAGE IS SOCIALLY UNACCEPTABLE SINGLE WOMEN ACCOUNTED FOR TWENTY FIVE PERCENT OF THE ABORTIONS IN SHANGHAI AND BEIJING THE NUMBER OF POTENTIAL INVESTORS WHO VISITED VIETNAM LAST YEAR INCREASED TWENTY THREE PERCENT AS A RESULT OF LAST FALL'S RESUMPTION OF MULTILATERAL LENDING TO THE COUNTRY THE GOVERNMENT SAID SEVEN THOUSAND FOUR HUNDRED PROSPECTIVE INVESTORS MET WITH THE AGENCY THAT REGULATES FOREIGN INVESTMENT JAPANESE VISITORS LED THE PARADE FOLLOWED BY THOSE FROM TAIWAN THE U. S. SOUTH KOREA AND FRANCE THE INFLUX PRECEDING THE LIFTING OF THE U. S. ECONOMIC EMBARGO AGAINST VIETNAM STEMMED LARGELY FROM RESUMPTION OF LENDING BY AGENCIES SUCH AS THE WORLD BANK TO HELP REBUILD ROADS BRIDGES AND PORTS REGIONAL OFFICIALS IN VLADIVOSTOK APPROVED BUILDING TANKS IN RUSSIA'S FAR EAST FOR TEMPORARILY STORING NUCLEAR WASTE INSTEAD OF DUMPING IT INTO THE SEA OF JAPAN THE TANKS ARE TO BE INSTALLED ABOUT ONE HUNDRED TWENTY FIVE MILES EAST OF VLADIVOSTOK RUSSIA'S MAIN PACIFIC PORT JAPAN HAS AGREED TO FINANCE JAPANESE FIRMS' CONSTRUCTION OF A FAR EAST WASTE REPROCESSING PLANT IF RUSSIA DISCONTINUES OCEAN DUMPING THE I. G. METALL METALWORKERS UNION IN GERMANY RULING OUT LONGER WORKWEEKS AS A CONCESSION TO EMPLOYERS SAID IT WOULD RESUME WARNING STRIKES THIS WEEK A FULL STRIKE COULD BEGIN IN MARCH THE GESAMTMETALL EMPLOYERS GROUP SEEKING TO CUT ITS COSTS TEN PERCENT HAS PROPOSED A WAGE FREEZE AND BENEFIT CUTS THE UNION SAID IT WOULDN'T CAST ASIDE FIFTEEN YEARS OF LABOR POLICY TO BREAK THE DEADLOCK THAT CAUSED NEGOTIATIONS TO COLLAPSE THOUGH IT WOULD ACCEPT SMALLER WAGE BOOSTS IN RETURN FOR JOB GUARANTEES THE EUROPEAN UNION COMMISSION IS EXPECTED THIS WEEK TO FINE SEVENTEEN STEELMAKERS FOR ALLEGED PRICE FIXING THE MOVE COULD RAISE TENSIONS ABOUT PLANS TO OVERHAUL WESTERN EUROPE'S AILING STEEL INDUSTRY OFFICIALS SAID THE PENALTIES WOULD REFLECT CARTEL LIKE ACTIVITY DATING BACK TO THE LATE NINETEEN EIGHTIES FOR COLLUSION ON PRICES AND CORPORATE DATA ON MARKET DEMAND AND TRENDS UNDER E. U. COMPETITION LAW FINES CAN AMOUNT TO AS MUCH AS TEN PERCENT OF A COMPANY'S ANNUAL REVENUE INDUSTRY OFFICIALS WERE OUTRAGED BY THE PLANNED ACTION AS THEY PREPARED FOR PRODUCTION CUTBACK TALKS TODAY WITH THE E. U. ANTITRUST AND INDUSTRY COMMISSIONERS STEELMAKERS AND THE E. U. HAVE BEEN AT LOGGERHEADS SINCE LAST AUTUMN ON HOW TO REDUCE THE SECTOR'S SURPLUS CAPACITY IN DECEMBER THE E. U. APPROVED SEVEN POINT FIVE TWO BILLION DOLLARS IN GOVERNMENT SUBSIDIES FOR STEELMAKERS OWNED BY GERMANY ITALY SPAIN AND PORTUGAL OTHER PRODUCERS SAID THE E. U. WAS LETTING SUBSIDIES DISTORT COMPETITION WHILE PRESSING THEM FOR COSTLY PLANT CLOSURES CHINA'S PHARMACEUTICAL IMPORTS IN NINETEEN NINETY THREE ROSE TWENTY PERCENT TO SIX HUNDRED MILLION DOLLARS FROM NINETEEN NINETY TWO AND ALMOST DOUBLED FROM NINETEEN NINETY ONE THEY ACCOUNTED FOR AT LEAST SEVEN PERCENT OF CHINA'S PHARMACEUTICAL MARKET WHILE FOREIGN JOINT VENTURES' PRODUCTS REPRESENTED THIRTY FIVE PERCENT THE U. S. ADVISED AMERICANS TRAVELING TO OR LIVING IN EGYPT TO BE SECURITY CONSCIOUS AND KEEP A LOW PROFILE IT CITED THREATS AND VIOLENCE BY ISLAMIC EXTREMISTS AGAINST FOREIGN INVESTORS AND TOURISTS EVEN THOUGH U. S. CITIZENS HAVEN'T BEEN SINGLED OUT AS TARGETS EMPLOYER COSTS FOR PRESCRIPTION DRUG BENEFITS JUMPED FIFTEEN PERCENT LAST YEAR ABOUT TWICE THE RATE OF OVERALL HEALTH PLAN EXPENSES ACCORDING TO FOSTER HIGGINS AN EMPLOYEE BENEFITS CONSULTANT THE FINDINGS INDICATE THAT DESPITE GROWTH OF MANAGED CARE STRATEGIES TO CONTAIN HEALTH COSTS AND PLEDGES FROM DRUG MANUFACTURERS TO HOLD DOWN PRICE INCREASES MANY EMPLOYERS ARE STILL HAVING DIFFICULTY HOLDING DOWN THE COST OF PRESCRIPTION DRUGS FOR THEIR WORKERS QUOTE THE MOST SUCCESSFUL APPROACH WE SEE IN HOLDING DOWN COSTS IS GETTING MORE AND MORE EMPLOYEES INTO MANAGED CARE QUOTE SAID DAVID RAHILL PRINCIPAL AT FOSTER HIGGINS THE OVERALL RESULTS PROVIDE FURTHER EVIDENCE OF A GENERAL MODERATION IN HEALTH CARE INFLATION LAST MONTH FOR INSTANCE THE BUREAU OF LABOR STATISTICS REPORTED THAT MEDICAL CARE PRICES ROSE JUST FIVE POINT FOUR PERCENT LAST YEAR THE LOWEST ANNUAL INCREASE SINCE NINETEEN SEVENTY THREE BUT THE RESULTS FOR DRUG BENEFITS RUN COUNTER TO THAT TREND AND MAY REFLECT A VARIETY OF CONFLICTING FORCES IN THE MARKET FOR ONE THING SAID JAMES A. NORTON MANAGING CONSULTANT IN FOSTER HIGGINS'S STAMFORD CONNECTICUT OFFICE MORE COMPANIES ARE TRYING NEW TECHNIQUES TO MANAGE THEIR DRUG COSTS AND THE INITIAL IMPACT OF SUCH STRATEGIES OFTEN IS TO INCREASE COSTS THAT'S BECAUSE OF THE SHOEBOX EFFECT FOR EXAMPLE PRESCRIPTION CARDS AUTOMATICALLY RECORD CLAIMS THAT EMPLOYEES MIGHT OTHERWISE HAVE STUFFED IN A SHOEBOX AND NEVER FILED ANOTHER FACTOR MR. NORTON SAID MIGHT BE THE GROWING USE OF NEW DRUGS SUCH AS PROZAC AN ANTIDEPRESSANT MARKETED BY ELI LILLY AND COMPANY MANY EXPERTS SAID THEY BELIEVE THAT CONSUMERS ARE SEEKING AND PHYSICIANS ARE PRESCRIBING SUCH MEDICINES FOR CONDITIONS THAT DON'T CALL FOR PILLS THE CONSUMPTION OF DRUGS BY THE POPULATION IS INCREASING STEADILY EACH YEAR AND NOT NECESSARILY BECAUSE THE RATE OF DISEASE IS INCREASING IT APPEARS UNLIKELY THAT DRUG PRICE INCREASES CONTRIBUTED SIGNIFICANTLY TO THE RISE IN CORPORATE COSTS SINCE PRESCRIPTION DRUG PRICES WENT UP JUST THREE POINT ONE PERCENT LAST YEAR ACCORDING TO THE PRODUCER PRICE INDEX COMPARED WITH THE FIFTEEN PERCENT RISE IN EMPLOYER DRUG COSTS REVENUES AT THE MAJOR DRUG COMPANIES GREW ABOUT FIVE PERCENT NOTED JACK LAMBERTON AN ANALYST AT NATWEST SECURITIES CORPORATION A MERCK AND COMPANY SPOKESMAN SAID GROWTH OF MEMBERSHIP IN MANAGED CARE PLANS COULD ACCOUNT FOR SOME INCREASE IN EMPLOYER DRUG COSTS BECAUSE THE PLANS TEND TO USE DRUGS MORE AGGRESSIVELY TO HOLD DOWN HOSPITAL AND OTHER HEALTH CARE EXPENSES BUT BECAUSE MANAGED CARE ORGANIZATIONS NEGOTIATE DISCOUNTS THEIR INCREASED UTILIZATION AND INCREASED COST MIGHT NOT INCREASE DRUG COMPANIES' REVENUES PROPORTIONATELY SAID A SPOKESMAN FOR MCKESSON CORPORATION WHICH OWNS P. C. S. HEALTH SYSTEMS INCORPORATED A BIG MANAGER OF PHARMACEUTICAL COSTS FOR HEALTH PLANS ACCORDING TO I. M. S. AMERICA LIMITED WHICH COLLECTS DATA ON PRESCRIPTIONS DISPENSED IN THE NATION'S PHARMACIES INDIVIDUAL PRESCRIPTIONS WERE UP FIVE PERCENT IN NINETEEN NINETY THREE BUT THOSE DISTRIBUTED BY MAIL ORDER PHARMACIES WHICH ARE HEAVILY USED BY MANAGED CARE ORGANIZATIONS WERE UP FIFTEEN PERCENT OTHER FINDINGS FROM THE SURVEY SHOWED THAT THE AVERAGE TOTAL HEALTH BENEFIT COST PER EMPLOYEE WAS THREE THOUSAND SEVEN HUNDRED EIGHTY ONE DOLLARS LAST YEAR UP FROM THREE THOUSAND FIVE HUNDRED TWO DOLLARS IN NINETEEN NINETY TWO COSTS AT HEALTH MAINTENANCE ORGANIZATIONS ROSE SIX POINT FIVE PERCENT WHILE THOSE IN TRADITIONAL FEE FOR SERVICE PLANS GREW SEVEN POINT ONE PERCENT AT MANAGED CARE NETWORKS KNOWN AS PREFERRED PROVIDER ORGANIZATIONS OR P. P. O.S COSTS WERE UP FIVE POINT FIVE PERCENT WHILE AT SO CALLED POINT OF SERVICE PLANS H. M. O.S THAT PROVIDE MEMBERS WITH THE OPTION OF GETTING CARE OUTSIDE OF THEIR NETWORK INCREASES WERE EIGHT POINT NINE PERCENT UNLIKE TRADITIONAL H. M. O.S BOTH P. P. O.S AND POINT OF SERVICE PLANS OFFER MEMBERS THE OPTION AT INCREASED OUT OF POCKET COSTS TO SEE DOCTORS OUTSIDE OF THE HEALTH PLAN NEARLY ALL OF THE ENROLLMENT GROWTH IN MANAGED CARE OCCURRED IN THOSE TYPES OF PLANS WHILE TRADITIONAL H. M. O. MEMBERSHIP WAS ALMOST FLAT THE SURVEY FOUND THE DESIRE TO HAVE SOME CHOICE IS A KEY SELLING FEATURE OF ANY NEW HEALTH PLAN MR. RAHILL SAID PRESERVING CHOICE OF DOCTORS IS EMERGING AS A KEY ISSUE IN THE NATIONAL DEBATE OVER LEGISLATIVE PROPOSALS TO REFORM THE HEALTH CARE SYSTEM THE SURVEY ALSO FOUND THAT FOR SMALL EMPLOYERS THOSE WITH TEN TO FOUR HUNDRED NINETY NINE EMPLOYEES TOTAL AVERAGE HEALTH BENEFITS COSTS WERE THREE THOUSAND TWO HUNDRED FORTY DOLLARS COMPARED WITH FOUR THOUSAND ONE HUNDRED SEVENTEEN DOLLARS FOR EMPLOYERS WITH AT LEAST FIVE HUNDRED WORKERS SMALLER COMPANIES GENERALLY OFFER A LESS GENEROUS BENEFITS PACKAGE REQUIRE THEIR EMPLOYEES TO PAY HIGHER OUT OF POCKET COSTS AND DON'T PROVIDE RETIREE BENEFITS FOSTER HIGGINS SAID ELYSE TANOUYE CONTRIBUTED TO THIS ARTICLE WESTERN COMPANY OF NORTH AMERICA HOUSTON SAID IT EXPECTS TO REPORT THAT FOURTH QUARTER OPERATING PROFIT FELL FORTY FOUR PERCENT LARGELY AS A RESULT OF THE COMPANY HAVING SOLD MUCH OF ITS OFFSHORE OIL AND GAS DRILLING RIGS DURING THE LAST YEAR WESTERN COMPANY WHICH SAID IT'S FOCUSING MORE ON ITS PRESSURE SERVICING BUSINESS FOR OIL AND GAS WELLS SAID IT EXPECTS OPERATING PROFIT OF FOUR POINT FIVE MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE IN THE YEAR EARLIER QUARTER BEFORE A CHARGE OF ONE POINT TWO MILLION DOLLARS FROM THE PREPAYMENT OF DEBT THE COMPANY REPORTED PROFIT OF EIGHT MILLION DOLLARS OR FORTY FIVE CENTS A SHARE ON REVENUE OF ONE HUNDRED POINT TWO MILLION DOLLARS NET INCOME WAS SIX POINT EIGHT MILLION DOLLARS OR THIRTY EIGHT CENTS A SHARE THE OIL FIELD SERVICE COMPANY'S ESTIMATE FOR THE MOST RECENT FOURTH QUARTER EARNINGS EXCLUDES SEVERAL EXPECTED NONRECURRING ITEMS A GAIN OF THIRTY NINE POINT SIX MILLION DOLLARS FROM THE SALE OF RIGS CERTAIN ASSET WRITE DOWNS TOTALING FOURTEEN MILLION DOLLARS AND A CHARGE OF TWENTY SIX POINT TWO MILLION DOLLARS RELATED TO THE REPURCHASE OF SENIOR NOTES LLOYD'S OF LONDON INVESTORS REJECTED A NINE HUNDRED MILLION POUND ONE POINT THREE BILLION DOLLARS SETTLEMENT OFFER INCREASING CHANCES OF A COSTLY LEGAL BATTLE OVER LOSSES SUFFERED BY THE INSURANCE MARKET'S INVESTORS THE INVESTORS SOME OF WHOM HAVE BEEN RUINED BECAUSE OF BIG LOSSES FROM ASBESTOS POLLUTION AND NATURAL DISASTER CLAIMS ARE GAMBLING THEY WILL GET MORE MONEY FROM LITIGATION OR FROM A SWEETENED OFFER FROM LLOYD'S DESPITE LLOYD'S CLAIMS TO THE CONTRARY THE INVESTORS BELIEVE IT WILL MAKE A BETTER OFFER RATHER THAN FACE THE FINANCIAL AND PUBLIC RELATIONS RISKS OF A DRAWN OUT SPECTACLE IN COURT THE COMPENSATION PACKAGE WAS ORIGINALLY OFFERED TO INVESTORS IN DECEMBER IT WAS MEANT TO COMPENSATE THEM FOR LOSSES SUFFERED IN THE NINETEEN EIGHTIES BY ONE HUNDRED THIRTY LLOYD'S SYNDICATES WHOSE MANAGERS ARE ACCUSED OF NEGLIGENCE IT INCLUDED PAYMENTS FROM LLOYD'S CENTRAL FUND AND FROM ERRORS AND OMISSIONS INSURANCE TAKEN OUT BY LLOYD'S AGENTS THE AGENTS WHO RECRUIT INVESTORS FOR LLOYD'S SYNDICATES WOULD BE THE TARGET OF INVESTORS' LAWSUITS THE PLAN WAS SUPPORTED BY INVESTORS REPRESENTING ONLY THIRTY EIGHT PERCENT OF THE VALUE OF THE PROPOSED SETTLEMENT WELL BELOW THE SEVENTY PERCENT APPROVAL RATE LLOYD'S HAD REQUIRED THE LLOYD'S PLAN DID WIN A NARROW MAJORITY OF INVESTORS OF THE TWENTY THREE THOUSAND FOUR HUNDRED EIGHTY EIGHT VOTING TWELVE THOUSAND ONE HUNDRED THREE APPROVED THE PACKAGE THE PLAN APPEARED DOOMED FROM THE START AS COMMITTEES REPRESENTING THE INVESTORS KNOWN AS QUOTE NAMES QUOTE URGED MEMBERS TO REJECT IT THE PLAN COVERED ONLY ONE THIRD OF THE TWO POINT SEVEN BILLION POUNDS OF LOSSES UNDER DISPUTE AND MADE NO PROVISION FOR FUTURE LOSSES UNDER THE SAME POLICIES THE PLAN ALSO WOULD HAVE MEANT THE SURRENDER OF INVESTORS' RIGHTS TO FILE LAWSUITS THE MORE THAN THIRTY ONE THOUSAND PRIVATE INVESTORS WHO HAVE UNLIMITED EXPOSURE TO LLOYD'S LOSSES MUST ALSO CONTEND WITH AN ANTICIPATED LOSS OF TWO POINT OH FIVE BILLION POUNDS FOR NINETEEN NINETY ONE DUE TO BE REPORTED IN MAY LLOYD'S RESULTS ARE POSTED THREE YEARS IN ARREARS THAT WOULD BRING LLOYD'S LOSSES OVER A FOUR YEAR PERIOD TO SEVEN POINT FIVE BILLION POUNDS LLOYD'S NOW HAS WITHDRAWN THE OFFER WE PUT OUR ALL INTO THIS OFFER AND IT WAS THE VERY BEST OFFER WE COULD HAVE MADE SAID ROGER PASCALL ADMINISTRATIVE DIRECTOR OF THE ASSOCIATION OF LLOYD'S MEMBERS LLOYD'S HAS OTHER PRIORITIES NOW ALTHOUGH LLOYD'S HAS SAID IT WON'T MAKE A RICHER OFFER INVESTOR GROUPS BELIEVE IT MAY BE BLUFFING A LEGAL BATTLE WHICH COULD LAST FIVE YEARS WOULD POSE BIG RISKS FOR INVESTORS THEY HAVE ALREADY SPENT SOME ONE HUNDRED THOUSAND IN LEGAL COSTS WITHOUT CASES COMING TO COURT YET AND THERE'S NO CERTAINTY THAT THE COURTS WILL RULE IN THEIR FAVOR WITH THE MANAGING AGENTS THEMSELVES IN SHAKY FINANCIAL CONDITION THE INVESTORS MAY FIND THEMSELVES FIGHTING OVER A SMALL POT OF CASH THE NAMES HAVE CONVINCED THEMSELVES IN ALMOST ALL CASES THAT THEY HAVE A GOOD CASE BUT I DON'T THINK THEY'RE PAYING ENOUGH REGARD TO THE DIFFICULTY OF MAKING THEIR CASES STICK AND GETTING SOMETHING OUT OF IT MR. PASCALL SAID DESPITE YEARS OF BAD PUBLICITY THE LLOYD'S MARKET HAS BEEN RECOVERING ITS COSTS HAVE FALLEN MANY OF ITS PREMIUM RATES HAVE INCREASED AND BECAUSE IT HAS ALLOWED CORPORATE INVESTMENT FOR THE FIRST TIME ITS UNDERWRITING CAPACITY HAS CLIMBED TO TEN POINT NINE BILLION POUNDS THIS YEAR FROM EIGHT POINT SEVEN BILLION POUNDS IN NINETEEN NINETY THREE AND WITH THE ONCE WEALTHY NAMES FAILING TO WIN MUCH PUBLIC SYMPATHY SAYS MR. PASCALL THEY COULD FIND THEMSELVES STEWING IN THEIR OWN JUICE A LLOYD'S OF LONDON SPOKESMAN AFTER INVESTORS REJECTED A ONE POINT THREE BILLION DOLLAR SETTLEMENT OFFER SAID WE PUT OUR ALL INTO THIS OFFER AND IT WAS THE VERY BEST OFFER WE COULD HAVE MADE LLOYD'S HAS OTHER PRIORITIES NOW QUOTE IN AN ARTICLE TUESDAY THE QUOTE WAS ERRONEOUSLY ATTRIBUTED TO ROGER PASCALL ADMINISTRATIVE DIRECTOR OF THE ASSOCIATION OF LLOYD'S MEMBERS THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED FEBRUARY ELEVENTH NINETEEN NINETY FOUR 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 FEDERAL REALTY INVESTMENT TRUST WILL REDEEM ON MARCH THIRTY FIRST NINETEEN NINETY FOUR ITS FIVE AND ONE QUARTER PERCENT CONVERTIBLE SUBORDINATED DEBENTURES DUE TWO THOUSAND TWO CITIBANK NEW YORK IS PAYING AGENT FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM ON MARCH FIFTEENTH NINETEEN NINETY FOUR FOUR HUNDRED FIFTY MILLION THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS EIGHT POINT SEVEN PERCENT MEDIUM TERM NOTES DUE MARCH FIFTEENTH TWO THOUSAND ONE GREAT AMERICAN COMMUNICATIONS COMPANY WILL REDEEM ON FEBRUARY EIGHTEENTH NINETEEN NINETY FOUR ITS FOURTEEN PERCENT SENIOR EXTENDABLE P. I. K. NOTES SERIES ONE AND TWO DUE JUNE THIRTIETH TWO THOUSAND ONE SHAWMUT BANK CONNECTICUT IS TRUSTEE THE METRIC SYSTEM IS FINE BY US IF IT'S FINE BY THE AMERICAN PEOPLE IT'S NOT OF COURSE SO THE GOVERNMENT IS PURSUING ITS HALLOWED TRADITION OF PASSING A LAW TO FORCE FEED ITS WILL THE F. T. C. IS ABOUT TO REQUIRE PRODUCT LABELS TO INCLUDE BOTH ENGLISH UNITS AND METRIC EQUIVALENTS INDUSTRY SAYS FEW PEOPLE HAVE COMPLAINED ABOUT THE EXTRA COSTS WE'RE GLAD THEY ASKED VIACOM INCORPORATED APPEARED TO GAIN VICTORY IN THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INCORPORATED RECEIVING THE MAJORITY OF PARAMOUNT SHARES REQUIRED TO WIN THE CONTEST ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE COUNT BY MID EVENING YESTERDAY VIACOM'S OFFER OF ROUGHLY TEN BILLION DOLLARS FOR PARAMOUNT HAD ATTRACTED MORE THAN SIXTY PERCENT OF PARAMOUNT'S SHARES ACCORDING TO TWO OF THE PEOPLE WELL IN EXCESS OF THE FIFTY POINT ONE PERCENT NEEDED TO WIN UNDER BIDDING RULES AGREED TO BY VIACOM AND ITS BIDDING RIVAL Q. V. C. NETWORK INCORPORATED IT APPEARED THAT Q. V. C.'S OFFER WAS SWAMPED IN THE TALLY RECEIVING LESS THAN TEN MILLION SHARES COMPARED WITH ROUGHLY SEVENTY FIVE MILLION FOR VIACOM BARRING LAST MINUTE CHANGES IN THE COUNT WITHDRAWALS BY PARAMOUNT SHAREHOLDERS OR A COURT CHALLENGE BY Q. V. C. THE BIDDING RULES FOR THE PARAMOUNT AUCTION REQUIRE Q. V. C. TO WITHDRAW ITS OFFER AND BOW OUT THE DEADLINE FOR PARAMOUNT SHAREHOLDERS TO TENDER THEIR STOCK WAS TWELVE OH ONE A. M. TODAY Q. V. C. HAD NO OFFICIAL COMMENT BUT LATE LAST EVENING A HIGH LEVEL MEMBER OF THE Q. V. C. CAMP SAID THAT JUDGING FROM THE PAUCITY OF PARAMOUNT SHARES TENDERED TO THE HOME SHOPPING CONCERN VIACOM PRESUMABLY HAD PREVAILED IN THE STRUGGLE A SPOKESMAN FOR VIACOM SAID THE COMPANY WOULD HAVE NO OFFICIAL COMMENT UNTIL THIS MORNING ONE PERSON IN THE VIACOM CAMP SAID QUOTE JUST LIKE ANY PRESIDENTIAL CANDIDATE WE'LL WAIT UNTIL ALL THE RETURNS ARE IN CALIFORNIA HASN'T COME IN YET THE VOTE FOR VIACOM WAS OVERWHELMING AMONG WALL STREET PROFESSIONALS DESPITE PERSONAL APPEALS FROM Q. V. C. CHAIRMAN BARRY DILLER THAT HIS OFFER PROVIDED SUPERIOR LONG TERM VALUE BASED ON HIS ABILITY TO CREATE GREATER VALUE FROM PARAMOUNT'S ASSETS THIS WAS AN ECONOMIC CONTEST NOT A POPULARITY CONTEST SAID ONE WALL STREET EXECUTIVE ONE OF PARAMOUNT'S BIGGEST SHAREHOLDERS MARIO GABELLI WHOSE GABELLI FUNDS INCORPORATED OWNS FOUR MILLION SHARES OF PARAMOUNT SAID HE TENDERED HIS STOCK TO VIACOM BEFORE LAST NIGHT'S MIDNIGHT DEADLINE FOR PARAMOUNT SHAREHOLDERS TO CHOOSE BETWEEN THE TWO BIDS FIVE OTHER TAKEOVER STOCK TRADERS WHO SAID THEY EACH OWNED MORE THAN ONE MILLION PARAMOUNT SHARES BUT WHO ASKED NOT TO BE IDENTIFIED SAID THEY ALSO HAD TENDERED TO VIACOM A FEW TRADERS WITH A SMALLER NUMBER OF SHARES SAID THEY WERE BACKING Q. V. C. YESTERDAY Q. V. C. TOOK A STEP THAT APPEARED TO BE AIMED AT POSSIBLE FUTURE LITIGATION IF THE CONTEST WAS CLOSE OR VIACOM FAILED TO GAIN THE NEEDED FIFTY POINT ONE PERCENT THE HOME SHOPPING COMPANY APPEALED TO PARAMOUNT'S BOARD TO RECONSIDER ITS RECOMMENDATION THAT SHAREHOLDERS ACCEPT THE VIACOM OFFER NOTING THAT THE Q. V. C.'S CASH AND STOCK BID HAS RISEN IN VALUE ONE REASON THE Q. V. C. OFFER HAD GAINED IN VALUE IS THAT Q. V. C. WHICH ISSUED A STATEMENT SUNDAY VOWING NOT TO RAISE ITS BID WAS LOOKING LIKE THE LIKELY LOSER INVESTORS ASSUMING VIACOM WOULD WIN AND ISSUE MILLIONS OF NEW VIACOM SHARES TO ACQUIRE PARAMOUNT HAVE BEEN SELLING VIACOM STOCK AS A RESULT THE BOARD RESPONDED TO THE Q. V. C. REQUEST BY REAFFIRMING ITS RECOMMENDATION OF THE VIACOM BID YESTERDAY Q. V. C. STOCK ROSE ONE POINT SIX TWO FIVE DOLLARS TO FORTY EIGHT DOLLARS AND FIFTY CENTS A SHARE IN NASDAQ STOCK MARKET TRADING WHILE VIACOM CLASS B. NONVOTING SHARES FELL ONE DOLLAR AND SEVENTY FIVE CENTS A SHARE TO TWENTY NINE POINT EIGHT SEVEN FIVE DOLLARS ON THE AMERICAN STOCK EXCHANGE BOTH STOCKS MOVED IN RESPONSE TO Q. V. C.'S SUNDAY STATEMENT WHICH READ LIKE A CONCESSION OF DEFEAT SOME WALL STREET EXPERTS CONSIDER THE VIACOM Q. V. C. BATTLE FOR ENTERTAINMENT AND PUBLISHING GIANT PARAMOUNT TO HAVE BEEN ONE OF THE GREATEST TAKEOVER BATTLES OF THE PAST FIFTEEN YEARS IT HAS PITTED FORMER PARAMOUNT STUDIO CHIEF BARRY DILLER NOW CHAIRMAN OF Q. V. C. AGAINST HIS FORMER BOSS PARAMOUNT CHAIRMAN MARTIN DAVIS AT THE BEGINNING OF THE BIDDING BATTLE MR. DAVIS APPEARED TO HAVE NEGOTIATED A FRIENDLY DEAL WITH VIACOM IN ORDER TO KEEP HIS COMPANY OUT OF MR. DILLER'S HANDS AND IT SAW MR. DILLER AND VIACOM CHAIRMAN SUMNER REDSTONE NEGOTIATE SEVERAL BILLION DOLLAR ALLIANCES WITH OTHER COMPANIES IN ORDER TO STRENGTHEN THEIR BALANCE SHEETS TO RAISE THEIR PARAMOUNT BIDS MR. DILLER HOOKED UP WITH FIVE OTHER COMPANIES LED BY BELLSOUTH CORPORATION WHICH AGREED TO INVEST TWO BILLION DOLLARS AND MR. REDSTONE PUT TOGETHER AN EIGHT POINT FOUR BILLION DOLLAR MERGER WITH BLOCKBUSTER ENTERTAINMENT CORPORATION THEIR EFFORT WAS AIMED AT GAINING CONTROL OF THE LAST MAJOR INDEPENDENT HOLLYWOOD STUDIO AT A TIME WHEN COMPETING WOULD BE DISTRIBUTORS OF ENTERTAINMENT FROM CABLE T. V. COMPANIES TO REGIONAL BELL OPERATING COMPANIES ARE VYING FOR CONTROL OF PROGRAMMING IN ORDER TO GAIN AN EDGE FOR THEIR DISTRIBUTION SYSTEM AS THEIR COMPETING TECHNOLOGIES EVOLVE LAURA LANDRO CONTRIBUTED TO THIS ARTICLE THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT A. N. R. PIPELINE COMPANY ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF DEBENTURES DUE FEBRUARY FIFTEENTH TWO THOUSAND TWENTY FOUR PRICED AS SEVEN POINT THREE SEVEN FIVES AT NINETY NINE POINT TWO EIGHT TO YIELD SEVEN POINT FOUR THREE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF NINETY BASIS POINTS ABOVE TREASURYS RATED B. A A TWO BY MOODY'S INVESTORS SERVICE INCORPORATED AND TRIPLE B. MINUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INCORPORATED A. N. R. PIPELINE IS A UNIT OF COASTAL CORPORATION BANQUE PARIBAS NEW YORK BRANCH THREE HUNDRED MILLION DOLLARS OF NOTES DUE MARCH FIRST TWO THOUSAND NINE PRICED AS SIX POINT EIGHT SEVEN FIVES AT NINETY NINE POINT TWO ONE FIVE TO YIELD SIX POINT NINE SIX PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE HUNDRED TWO BASIS POINTS ABOVE THE FIVE POINT SEVEN FIVE PERCENT TREASURY MATURING IN AUGUST TWO THOUSAND THREE RATED SINGLE A TWO BY MOODY'S AND SINGLE A MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH AND COMPANY FEDERAL FARM CREDIT BANK SYSTEM ONE HUNDRED MILLION DOLLARS OF MEDIUM TERM NOTES DUE FEBRUARY TWENTY SECOND NINETEEN NINETY SIX PRICED INITIALLY AT PAR TO YIELD FOUR POINT FOUR FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF FOUR BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY NORTEK INCORPORATED ONE HUNDRED NINETY MILLION DOLLARS OF SENIOR SUBORDINATED NOTES DUE MARCH FIRST TWO THOUSAND FOUR PRICED AS NINE POINT EIGHT SEVEN FIVES AT NINETY NINE POINT TWO ONE FOUR TO YIELD TEN PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED C. A. A. BY MOODY'S AND TRIPLE C. BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS AND COMPANY BREED TECHNOLOGIES INCORPORATED TWO POINT EIGHT MILLION COMMON SHARES PRICED AT TWENTY EIGHT DOLLARS AND FIFTY CENTS EACH THROUGH UNDERWRITERS LED BY LAZARD FRERES INDIA FUND INCORPORATED INITIAL OFFERING OF THIRTY FIVE MILLION COMMON SHARES PRICED AT FIFTEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER AND COMPANY HEALTHCARE REALTY TRUST INCORPORATED SIX POINT TWO MILLION COMMON SHARES PRICED AT TWENTY ONE POINT THREE SEVEN FIVE DOLLARS EACH ACCORDING TO THE COMPANY CO MANAGERS OF THE UNDERWRITING GROUP ARE DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION SMITH BARNEY SHEARSON INCORPORATED AND EQUITABLE SECURITIES CORPORATION A. B. B. INTERNATIONAL FINANCE N. V. SWISS SWEDISH PARENT TWO HUNDRED BILLION ITALIAN LIRE OF EIGHT POINT ONE TWO FIVE PERCENT EUROBONDS DUE MARCH TENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT FIVE FIVE VIA DEUTSCHE BANK A. G. LONDON BONDS YIELD EIGHT POINT ONE NINE PERCENT AFTER FEES KEEP WELL AGREEMENT WITH A. B. B. ASEA BROWN BOVERI LIMITED FEES TWO CREDITO ITALIANO ITALY TWO HUNDRED BILLION ITALIAN LIRE OF FLOATING RATE EURONOTES DUE MARCH TENTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED POINT TWO FIVE FOR OWN ACCOUNT REOFFERED AT NINETY NINE POINT NINE PAYABLE QUARTERLY AT ZERO POINT TWO FIVE POINT OVER THREE MONTH LONDON INTERBANK OFFERED RATE FEES ZERO POINT FIVE CREDIT LOCAL DE FRANCE FRENCH AGENCY TWO HUNDRED FIFTY MILLION CANADIAN DOLLARS OF SIX POINT SEVEN FIVE PERCENT EUROBONDS DUE MARCH TWENTY FIRST TWO THOUSAND SIX AT ISSUE PRICE ONE HUNDRED ONE VIA PARIBAS CAPITAL MARKETS REOFFERED AT NINETY NINE POINT ONE TWO FIVE TO YIELD SIX POINT EIGHT SIX PERCENT A SPREAD OF TWENTY BASIS POINTS ABOVE TEN YEAR CANADIAN GOVERNMENT ISSUE FEES TWO POINT TWO FIVE KOMMUNINVEST I SVERIGE A. B. SWEDISH AGENCY ONE HUNDRED MILLION DOLLARS OF FIVE POINT SIX TWO FIVE PERCENT EUROBONDS DUE MARCH SIXTEENTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT EIGHT VIA FUJI INTERNATIONAL FINANCE P. L. C. BONDS YIELD FIVE POINT SIX SEVEN PERCENT A MARGIN OF TWENTY EIGHT BASIS POINTS OVER COMPARABLE U. S. TREASURY FEES ZERO POINT THREE SUMITOMO HEAVY INDUSTRIES LIMITED JAPAN SIX BILLION YEN OF FLOATING RATE EURONOTES DUE MARCH TENTH NINETEEN NINETY EIGHT AT ISSUE PRICE ONE HUNDRED POINT TWO FIVE VIA SUMITOMO FINANCE INTERNATIONAL P. L. C. REOFFERED AT PAR PAYABLE QUARTERLY AT THREE MONTH LIBOR PLUS FORTY TWO POINT FIVE BASIS POINTS PUT OPTION EXERCISABLE AT PAR EVERY YEAR SEPTEMBER TENTH IF STOCKHOLDERS' EQUITY FALLS BELOW TWENTY BILLION YEN FEES ZERO POINT THREE SUMITOMO HEAVY INDUSTRIES LIMITED JAPAN SIX BILLION YEN OF THREE POINT FOUR PERCENT EUROBONDS DUE JUNE THIRD NINETEEN NINETY EIGHT AT ISSUE PRICE ONE HUNDRED ONE POINT FOUR FIVE VIA DAIWA EUROPE LIMITED REOFFERED AT ONE HUNDRED POINT ONE TWO FIVE TO YIELD THREE POINT THREE SIX FIVE PERCENT PUT OPTION EXERCISABLE AT PAR EVERY YEAR SEPTEMBER TENTH IF STOCKHOLDERS' EQUITY FALLS BELOW TWENTY BILLION YEN FEES ONE POINT SIX TWO FIVE SAME STORE SALES ROSE ONLY SLIGHTLY AND PROFIT MARGINS FELL BUT ZALE CORPORATION DALLAS REPORTED AN EARNINGS TURNAROUND IN ITS FISCAL THIRD QUARTER THE NATION'S LARGEST JEWELRY RETAILER REPORTED NET INCOME OF FORTY ONE POINT SIX MILLION DOLLARS OR ONE DOLLAR AND NINETEEN CENTS A SHARE IN THE DECEMBER THIRTY FIRST PERIOD ITS FIRST FULL QUARTER SINCE EMERGING FROM BANKRUPTCY COURT PROCEEDINGS THAT COMPARED WITH A YEAR EARLIER LOSS OF SEVENTEEN POINT EIGHT MILLION DOLLARS THE COMPANY SAID YEAR EARLIER PER SHARE FIGURES WEREN'T COMPARABLE BECAUSE ITS OLD STOCK WAS CANCELED UNDER THE REORGANIZATION PLAN THAT TOOK EFFECT JULY THIRTIETH THE YEAR EARLIER LOSS RESULTED LARGELY FROM RESTRUCTURING COSTS OF NINETY TWO POINT ONE MILLION DOLLARS INCLUDING FORTY ONE POINT SEVEN MILLION DOLLARS TO COVER THE CLOSING OF ONE HUNDRED SEVENTY FIVE STORES IN EARLY NINETEEN NINETY THREE QUOTE THE REASON THERE WAS AN IMPROVEMENT WAS BECAUSE OF THAT CHARGE QUOTE MERRILL WERTHEIMER THE COMPANY'S CONTROLLER SAID SAME STORE SALES AT STORES OPEN FOR AT LEAST A YEAR ROSE ONLY ONE POINT SIX PERCENT IN THE QUARTER FROM A YEAR EARLIER OVERALL SALES DECLINED SEVEN PERCENT TO THREE HUNDRED NINETY SIX POINT FIVE MILLION DOLLARS FROM FOUR HUNDRED TWENTY EIGHT POINT TWO MILLION DOLLARS PRIMARILY BECAUSE OF STORE CLOSINGS ZALE'S MARGINS FELL TO THIRTY SIX POINT NINE PERCENT FROM THIRTY SEVEN POINT TWO PERCENT A YEAR EARLIER MR. WERTHEIMER SAID DETROIT TOOL AND ENGINEERING COMPANY NEWLY NAMED DT INDUSTRIES INCORPORATED AN INITIAL OFFERING OF FOUR POINT FIVE MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION OF SIX HUNDRED SEVENTY FIVE THOUSAND SHARES VIA C. S. FIRST BOSTON CORPORATION MORGAN STANLEY AND COMPANY AND WILLIAM SCHRODER AND COMPANY FABWEL INCORPORATED AN INITIAL OFFERING OF TWO POINT FIVE MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR THREE HUNDRED SEVENTY FIVE THOUSAND SHARES VIA MCDONALD AND COMPANY SECURITIES INCORPORATED AND NATWEST SECURITIES LIMITED FIRST ALERT INCORPORATED AN INITIAL OFFERING OF AS MANY AS FIVE POINT SEVEN MILLION COMMON SHARES VIA SMITH BARNEY SHEARSON INCORPORATED AND MORGAN STANLEY GULF SOUTH MEDICAL SUPPLY INCORPORATED AN INITIAL OFFERING OF ONE MILLION NINE HUNDRED FIFTY THOUSAND COMMON SHARES VIA WILLIAM BLAIR AND COMPANY AND MONTGOMERY SECURITIES INTERNATIONAL CONTROLS CORPORATION AN OFFERING OF AS MUCH AS TWO HUNDRED TWENTY FIVE MILLION DOLLARS OF SENIOR SECURED NOTES VIA ALEXANDER BROWN AND SONS INCORPORATED AND SPP HAMBRO AND COMPANY J. B. POINDEXTER AND COMPANY AN OFFERING OF AS MUCH AS ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF SENIOR NOTES VIA MORGAN STANLEY NUMAR CORPORATION AN INITIAL OFFERING OF ONE POINT EIGHT MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR TWO HUNDRED SEVENTY THOUSAND SHARES VIA WERTHEIM SCHRODER AND COMPANY AND SIMMONS AND COMPANY INTERNATIONAL SCIENTIFIC GAMES HOLDING CORPORATION AN OFFERING OF TWO MILLION FIVE HUNDRED SEVENTY NINE THOUSAND TWO HUNDRED FIVE COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR THREE HUNDRED EIGHTY SIX THOUSAND EIGHT HUNDRED EIGHTY ADDITIONAL VIA ROBINSON HUMPHREY COMPANY SALOMON BROTHERS INCORPORATED AND RAYMOND JAMES AND ASSOCIATES INCORPORATED CORPORATE JARGON IF YOU DON'T KNOW THE INSIDE SKINNY IT CAN BE A JUMBLE AT COORS COMPANY NEW BEERS ARE REFERRED TO AS QUOTE THE LIQUID QUOTE AS IN QUOTE THE PROBLEM WASN'T THE MARKETING BUT THE LIQUID QUOTE AT MICROSOFT CORPORATION EXECUTIVES REFER TO AN EMPLOYEE'S BANDWIDTH SOMETIMES OFFERING THAT GUY DOESN'T HAVE THE BANDWIDTH TO HANDLE THAT PROJECT NOTES COMPUTER CONSULTANT CHERYL CURRID ONE FOR LINGUISTS TO CRINGE OVER A NEW VERB INCENTIVIZE MEANING TO REVISE PAY ARRANGEMENTS FOR MANAGERS COMPANIES COME UP WITH DERIVATIONS OF THEIR NAMES AT WAL MART STORES INCORPORATED EXECUTIVES WAL MARTIZE EMPLOYEES AT FIRMS THEY ACQUIRE THAT IS TRAIN THEM TO SMILE OFTEN AND OFFER EXTRA SERVICE AT INTEL CORPORATION OFFICIALS USE THE IZE FORMULATION FOR TRYING TO GET INVOLVED IN A NEW BUSINESS THESE DAYS THE COMPANY IS TRYING TO INTELLIZE THE VIDEO TELECONFERENCING INDUSTRY NEW YORK MARKETING CONSULTANT FRED PFAFF WHO USES INCENTIVIZE IN SPEECHES WONDERS WHAT WOULD MISS ADCOCK MY FIRST GRADE TEACHER SAY A JURY OF YOUR BIG FIRM PEERS JURY DUTY GIVES SMALL EMPLOYERS HEADACHES SMALL BUSINESS OWNERS OFTEN SCRAMBLE TO KEEP THEMSELVES OR KEY WORKERS OUT OF THE JURY BOX CRAIG HATKOFF A PRINCIPAL IN THE NEW YORK REAL ESTATE FIRM VICTOR CAPITAL GROUP IS BATTLING THE STATE AFTER FIVE POSTPONEMENTS QUOTE THERE'S NEVER A CONVENIENT TIME FOR A SMALL BUSINESS QUOTE HE SAYS NEW YORK RESTAURATEUR JEFF BLISS WENT BEFORE AN ADMINISTRATIVE CLERK TO GET A CHEF AT TRENDY MESA GRILL OUT OF HIS ASSIGNMENT ON THE FINAL SUMMONS SLIGHTLY LARGER WORKPLACES USE A VARIETY OF FILL INS FOR WORKERS DOING THEIR CIVIC DUTY MILLER TOOL AND DIE OF JACKSON MICHIGAN CROSSTRAINS ITS EIGHTY EMPLOYEES TO SUBSTITUTE FOR KEY WORKERS GALA HALLMARK IN DEARBORN MICHIGAN USES COLLEGE STUDENTS AND OTHER PART TIMERS TO KEEP THINGS RUNNING UNIONS TRY TO REGAIN THEIR EDGE ON HEALTH CARE AFTER A SLOW START BITTERNESS OVER NAFTA CRIMPS THEIR FINANCIAL CONTRIBUTIONS TO HEALTH CARE REFORM AND THEY HAVE DONE LITTLE ASIDE FROM TRAINING CAMPAIGN COORDINATORS HEALTH CARE CAMPAIGN COFFERS COLLECT JUST OVER ONE MILLION DOLLARS SO FAR AN AMOUNT EXPECTED BY THE END OF LAST YEAR THE HEALTH CARE REFORM PROJECT THE ADVERTISING CAMPAIGN FINANCED IN PART BY LABOR IS BEING OUTSPENT SEVEN TO ONE BY THE HEALTH CARE INDUSTRY FIGHTING THE CLINTON PLAN SAYS A. F. L. C. I. O.'S REX HARDESTY UNIONS SAY THEY HAVE HELD OFF INTENTIONALLY AND NOW WILL PICK UP THE PACE THEY EXPECT TO SEND OUT THREE HUNDRED SIXTY THOUSAND PIECES OF DIRECT MAIL TO CONSTITUENTS OF SEVENTY TWO KEY MEMBERS OF CONGRESS DURING THE PRESIDENT'S DAY RECESS RADIO ADS WILL RUN IN SWING DISTRICTS WE'RE REALLY INTO OUR LOBBYING EFFORT NOW SAYS JOANNA REAGAN POLITICAL DIRECTOR FOR THE BRICKLAYERS' UNION UNION LETTERS TO THEIR MEMBERS WILL CRITICIZE IN PARTICULAR THE COMPETING PLAN OFFERED BY TENNESSEE DEMOCRATIC REPRESENTATIVE JIM COOPER WANT A COMMITTED WORKER HIRE A NEW ONE EMPLOYEES GROW MUCH LESS LOYAL AFTER TWO YEARS ON THE JOB SAYS A STUDY OF YOUNG MANAGERS BY RESEARCHERS AT NEW YORK UNIVERSITY AND NORTHWESTERN UNIVERSITY EXPERIENCED WORKERS ALSO FEEL THEY DESERVE FASTER PROMOTIONS AND HIGH PAY ACCORDING TO THE STUDY IN THE ACADEMY OF MANAGEMENT JOURNAL FOR LIGHTER FINES PUT OUT THE WELCOME MAT FOR SAFETY INSPECTORS A REVIEW OF OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION DATA BY OSHA DATA OF MORRISTOWN N. J. SHOWS COMPANIES THAT INITIALLY DENIED ACCESS TO OSHA INSPECTORS WERE CHARGED WITH ALMOST TWICE AS MANY VIOLATIONS PER INSPECTION AND THE SAFETY AGENCY SOUGHT FINES AGAINST THEM NEARLY DOUBLE THOSE AGAINST MORE COOPERATIVE FIRMS SPLIT DECISION A HARRIS POLL SHOWS THREE QUARTERS OF AMERICANS BELIEVE THAT UNIONS IMPROVE WAGES AND WORKING CONDITIONS BUT SEVENTY PERCENT SAY UNIONS ARE TOO INVOLVED IN POLITICAL ACTIVITIES AND NEARLY TWO THIRDS THINK UNIONS FIGHT HARDER AGAINST CHANGE THAN FOR IT TELECOMMUTING GETS A BOOST FROM THE LOS ANGELES EARTHQUAKE THE BATTERED HIGHWAYS BECOME A MARKETING TOOL PACIFIC BELL SIGNS UP ONE THOUSAND FOUR HUNDRED NINETY NEW CUSTOMERS FOR SERVICES SUCH AS VOICE MAIL AND CALL WAITING HEAVILY DAMAGED CALIFORNIA STATE UNIVERSITY AT NORTHRIDGE SETS UP SPACE FOR ONE THOUSAND TELECOMMUTERS TO USE SEMIREMOTE SERVICES THEY CAN TRAVEL A SHORT DISTANCE TO THE CAMPUS AVOIDING DRIVING ALL THE WAY TO THEIR OFFICES A TELECOMMUTING CENTER THAT NEWHALL LAND AND FARMING COMPANY SET UP IN VALENCIA BEFORE THE QUAKE HAS LURED SO MANY CUSTOMERS THAT THE COMPANY PLANS TO BUILD AGAIN NEWHALL PARTNER STEVE VALENZIANO PREDICTS THAT THE DEMAND FOR OUR SPACE WILL FALL OFF IN THE NEXT YEAR OR SO BUT EVEN AFTER THE FREEWAYS ARE BACK IN ACTION HE SAYS SOME COMPANIES ARE GOING TO WANT TO CONTINUE TO DO IT TO SOME EXTENT EVEN ADVOCATES WONDER IF THE TREND WILL CONTINUE ONCE THE HIGHWAYS ARE FIXED A PAC BELL SPOKESMAN SAYS TELECOMMUTING WORKS THOUGH IT'S UNCLEAR HOW MANY NEW USERS WILL BE TELECOMMUTING QUOTE A YEAR FROM NOW QUOTE THE CHECKOFF EXECUTIVE RECRUITERS SURVEYED BY NEWSLETTER WORKPLACE AMERICA RECEIVED A RECORD ONE POINT SIX MILLION RESUMES IN THE PAST YEAR THEY HAD ONLY ELEVEN THOUSAND NINE HUNDRED POSITIONS TO FILL RESUMES WE NEVER FINISHED READING AN APPLICANT TO THIS NEWSPAPER WRITES I WOULD LIKE TO BE CONSIDERED FOR A PHOTOGRAPHY POSITION STOCK PRICES WERE MIXED AS FEARS OF TRADE WAR BETWEEN THE U. S. AND JAPAN RATTLED FINANCIAL MARKETS THE U. S. DOLLAR PLUNGED ALMOST FIVE YEN AGAINST THE JAPANESE CURRENCY WHILE THE TREASURY'S THIRTY YEAR BOND LOST MORE THAN ONE HALF POINT LIFTING ITS YIELD TO SIX POINT FOUR FIVE PERCENT ALL IN REACTION TO FRIDAY'S COLLAPSE OF U. S. JAPAN TRADE TALKS STOCKS FARED BETTER BUT STILL POSTED A LACKLUSTER PERFORMANCE THE DOW JONES INDUSTRIAL AVERAGE ADDED NINE POINT TWO EIGHT OR ZERO POINT TWO FOUR PERCENT TO THREE THOUSAND NINE HUNDRED FOUR POINT OH SIX WHILE BROAD BASED BAROMETERS OF ACTION ON THE NEW YORK STOCK EXCHANGE BARELY MOVED NEARLY HALF OF THE DOW'S GAIN CAME FROM ONE STOCK UNITED TECHNOLOGIES WHICH RALLIED TWO TO SIXTY SEVEN AND THREE EIGHTHS ADVANCING BIG BOARD ISSUES NARROWLY LED DECLINERS ONE THOUSAND ONE HUNDRED THIRTY FOUR TO ONE THOUSAND TWENTY NINE VOLUME ON THE EXCHANGE WAS MODERATELY ACTIVE AT ABOUT TWO HUNDRED SIXTY THREE POINT ONE MILLION SHARES JUST TWO HUNDRED ELEVEN POINT EIGHT MILLION TRADED FRIDAY BUT THAT SESSION CLOSED EARLY BECAUSE OF SEVERE WINTER WEATHER CONDITIONS IN THE NORTHEAST YESTERDAY'S WAS THE FIRST FULL SESSION SINCE JANUARY TWENTY FOURTH THAT VOLUME DIDN'T TOP THE ACTIVE THREE HUNDRED MILLION MARK STOCKS STARTED THE DAY HIGHER PUSHING THE DOW INDUSTRIALS TO A GAIN OF MORE THAN TWENTY FIVE POINTS AROUND MIDDAY BUT THE OPTIMISM EVAPORATED AS THE DOLLAR'S DECLINE INTENSIFIED AND BONDS TURNED DECIDEDLY LOWER THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX INCHED UP ZERO POINT ZERO FIVE OR ZERO POINT ZERO ONE PERCENT TO FOUR HUNDRED SEVENTY POINT TWO THREE AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED ZERO POINT ZERO FIVE OR ZERO POINT TWO PERCENT TO TWO HUNDRED SIXTY ONE POINT TWO SIX THE NASDAQ COMPOSITE INDEX HOWEVER JUMPED FOUR POINT OH SIX OR ZERO POINT FIVE TWO PERCENT TO SEVEN HUNDRED EIGHTY FIVE POINT FOUR FIVE TECHNOLOGY STOCKS PLAYED A LARGE ROLE WITH LOTUS DEVELOPMENT UP TWO AND ONE HALF TO FIFTY EIGHT AND ONE QUARTER MICROSOFT UP THREE EIGHTHS TO SEVENTY NINE AND ONE EIGHTH AND ORACLE SYSTEMS UP ONE TO THIRTY TWO AND THREE QUARTERS INSURANCE STOCKS ALSO WERE STRONG THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX LOST TWO POINT THREE TWO OR ZERO POINT FOUR NINE PERCENT TO FOUR HUNDRED SEVENTY FOUR POINT NINE ONE PARAMOUNT COMMUNICATIONS LOST THREE QUARTERS TO SEVENTY SIX AND ONE EIGHTH Q. V. C. NETWORK RULED OUT CHANGING ITS TEN BILLION DOLLAR OFFER FOR THE GIANT NEW YORK MEDIA COMPANY INCREASING THE ODDS THAT PARAMOUNT SHAREHOLDERS WILL CHOOSE A RIVAL OFFER FROM VIACOM THE DEADLINE FOR BOTH OFFERS WAS TWELVE OH ONE A. M. TODAY Q. V. C. SHARES JUMPED ONE AND FIVE EIGHTHS TO FORTY EIGHT AND ONE HALF ON THE NASDAQ STOCK MARKET WHILE VIACOM CLASS B. SKIDDED ONE AND THREE QUARTERS TO TWENTY NINE ON THE AMEX MEANWHILE BLOCKBUSTER ENTERTAINMENT DROPPED TO TWENTY FOUR ON THE BIG BOARD IT HAS AGREED TO MERGE WITH VIACOM BELLSOUTH WHICH IS BACKING Q. V. C. LOST ONE AND ONE QUARTER TO FIFTY SIX CANADIAN PACIFIC DROPPED ONE TO SIXTEEN AND THREE QUARTERS AFTER THE RAILROAD COMPANY IN MONTREAL SAID IT PLANS TO SELL TWENTY TWO MILLION ORDINARY SHARES THROUGH AN UNDERWRITTEN OFFERING THE SALE WILL GENERATE FOUR HUNDRED EIGHTY FOUR MILLION CANADIAN DOLLARS THREE HUNDRED SIXTY POINT THREE MILLION U. S. DOLLARS IN PROCEEDS FOR THE COMPANY IT EXPECTS TO COMPLETE THE SALE NEXT MONTH PRECIOUS METALS STOCKS JUMPED ALONG WITH THE PRICE OF GOLD NEWMONT MINING JUMPED ONE AND ONE EIGHTH TO FIFTY THREE AND ONE EIGHTH HOMESTAKE MINING INCREASED ONE HALF TO TWENTY TWO AND ON THE AMEX ECHO BAY MINES ADDED ONE QUARTER TO TWELVE AND ONE HALF GOLD FOR APRIL DELIVERY INCREASED THREE DOLLARS AND NINETY CENTS TO THREE HUNDRED EIGHTY FIVE DOLLARS AND SIXTY CENTS AN OUNCE IN NEW YORK AETNA LIFE AND CASUALTY JUMPED ONE AND FIVE EIGHTHS TO SIXTY FOUR AND THREE EIGHTHS RONALD COMPTON CHAIRMAN OF THE HARTFORD CONNECTICUT INSURER SAID HE EXPECTS THE COMPANY TO POST OPERATING EARNINGS OF SIX DOLLARS AND FIFTY CENTS A SHARE THIS YEAR REVERSING A LOSS FROM CONTINUING OPERATIONS OF FIVE DOLLARS AND FIFTY FOUR CENTS IN NINETEEN NINETY THREE SCIMED LIFE SYSTEMS SKIDDED TWO AND FIVE EIGHTHS TO THIRTY NINE AND FIVE EIGHTHS THE MEDICAL DEVICE MAKER IN MAPLE GROVE MINNESOTA SAID ITS RESULTS FOR THE FOURTH QUARTER THAT ENDS FEBRUARY TWENTY EIGHTH HAVE BEEN DEPRESSED BY LOWER THAN EXPECTED SALES IN JAPAN IT BLAMED THE SHORTFALL ON HIGH INVENTORY LEVELS AT HOSPITALS IN JAPAN AND PREDICTED IMPROVED SALES THERE LATER IN ITS NINETEEN NINETY FIVE FISCAL YEAR M. C. N. INCREASED ONE AND ONE EIGHTH TO THIRTY EIGHT AND ONE HALF THE DETROIT COMPANY'S MICHIGAN CONSOLIDATED GAS UNIT IS SEEKING PERMISSION FROM STATE REGULATORS TO BUILD PIPELINE FACILITIES THAT WILL BE USED TO SERVE A NATURAL GAS COGENERATION PLANT AT A DOW CHEMICAL SITE DOW CHEMICAL WAS UP ONE QUARTER TO SIXTY THREE AND THREE QUARTERS MINNESOTA MINING AND MANUFACTURING INCREASED ONE TO ONE HUNDRED FIVE AND SEVEN EIGHTHS AFTER THE SAINT PAUL MINNESOTA COMPANY DECLARED A TWO FOR ONE STOCK SPLIT AND INCREASED ITS QUARTERLY DIVIDEND THE PAYOUT WAS RAISED TO EIGHTY EIGHT CENTS FROM EIGHTY THREE CENTS ON A PRESPLIT BASIS IN ADDITION THE COMPANY SAID IT WILL REPURCHASE UP TO TWELVE MILLION PRESPLIT SHARES JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH SAID THE DOLLAR'S BIG SELL OFF IS TROUBLING FOR TWO MAJOR REASONS FIRST WEAKNESS IN THE CURRENCY COULD INCREASE INFLATIONARY PRESSURES IN THE U. S. ECONOMY SECOND IT COULD CAUSE JAPANESE INVESTORS TO LIQUIDATE POSITIONS IN U. S. STOCKS AND BONDS RISING RATES AND A WEAKENING DOLLAR WERE TWO OF THE INGREDIENTS THAT SET OFF THE NINETEEN EIGHTY SEVEN STOCK MARKET CRASH ANALYSTS DON'T THINK THE MARKET SITUATION NOW IS THAT PRECARIOUS BUT THE SEVERE WEAKNESS IN THE DOLLAR IS QUOTE CERTAINLY SERIOUS IF IT CONTINUES QUOTE SAID ARGUS'S MR. SOLLOWAY A VERY WEAK DOLLAR IS IN NOBODY'S INTEREST MEANWHILE PAUL RABBITT QUANTITATIVE ANALYST AT OPPENHEIMER AND COMPANY SAID HE DOESN'T EXPECT INTEREST RATES TO RISE TO A LEVEL THAT WOULD ENTICE PEOPLE TO BUY INTEREST BEARING INVESTMENTS INSTEAD OF STOCKS INVESTORS WON'T SHUN STOCKS UNTIL SHORT TERM RATES ADVANCE TO BETWEEN THREE POINT SEVEN PERCENT AND FOUR PERCENT FROM AROUND THREE POINT THREE PERCENT NOW UNITED TECHNOLOGIES ADVANCED AFTER MORGAN STANLEY AND COMPANY LIFTED ITS INVESTMENT RATING ON THE STOCK TO BUY FROM HOLD ANALYST JENNIFER A. POKRZYWINSKI IN PART CITED THE HARTFORD CONNECTICUT AEROSPACE COMPANY'S PLAN DISCLOSED FRIDAY TO SELL ITS NONCORE ASSETS AN INITIAL OFFERING OF THIRTY FOUR MILLION COMMON SHARES OF INDIA FUND INCORPORATED WAS PRICED AT FIFTEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER AND COMPANY THE INDIA FUND IS A CLOSED END MUTUAL FUND FEDERAL JUDGE WILLIAM DWYER IS BEST KNOWN FOR BANNING THE SALE OF PACIFIC NORTHWEST TIMBER TO PROTECT THE SPOTTED OWL NOW HE HAS BECOME THE JUDICIAL PROTECTOR OF ANOTHER CONTROVERSIAL ENDANGERED SPECIES INCUMBENT MEMBERS OF CONGRESS HE HAS DECLARED THAT THEIR CHIEF HABITAT CAPITOL HILL CAN'T BE DISTURBED BY A MAJORITY OF VOTERS WHO WANT MORE THINNING OF THE DEADWOOD THEY SEE THERE LAST WEEK JUDGE DWYER ISSUED A SWEEPING RULING THAT THE TERM LIMIT LAW PASSED BY WASHINGTON STATE IN NINETEEN NINETY TWO VIOLATED NOT ONLY THE CONSTITUTION BUT THE FIRST AND FOURTEENTH AMENDMENTS AS WELL AN APPEAL WILL BE FILED AND IS LIKELY TO REACH THE U. S. SUPREME COURT NEXT YEAR HOUSE SPEAKER TOM FOLEY HAS BEEN THE PRIME MOVER BEHIND THE LITIGATION TO BLOCK TERM LIMITS IN HIS HOME STATE THERE ARE MANY ARGUMENTS AGAINST TERM LIMITS BUT THE ONE THAT HOLDS THEY VIOLATE THE FIRST AND FOURTEENTH AMENDMENTS IS FRANKLY A STRETCH USING THAT LOGIC TERM LIMIT LAWS THAT HAVE RESTRICTED MORE THAN HALF THE NATION'S GOVERNORS FOR DECADES WOULD HAVE TO BE FOUND UNCONSTITUTIONAL STILL SUCH ARGUMENTS WERE USED IN NINETEEN NINETY ONE WHEN CALIFORNIA ASSEMBLY SPEAKER WILLIE BROWN CLAIMED HIS STATE'S TERM LIMIT LAW DISCRIMINATED AGAINST INCUMBENTS AND THEREBY VIOLATED THEIR RIGHT TO EQUAL PROTECTION OF THE LAWS UNDER THE FOURTEENTH AMENDMENT SPEAKER BROWN FURTHER CLAIMED THAT TERM LIMITS VIOLATED THE QUOTE ASSOCIATIONAL RIGHTS QUOTE GUARANTEED BY THE FIRST AMENDMENT CALIFORNIA'S SUPREME COURT REJECTED ALL OF MR. BROWN'S ARGUMENTS IN A SIX TO ONE DECISION UPHOLDING TERM LIMITS IT SAID THAT THERE WAS NO REASON WHY GOVERNORS SHOULD HAVE A LIMIT IMPOSED ON THEM WHILE STATE LEGISLATORS WERE ALLOWED PERMANENT TENURE IT NOTED THAT CURRENT INCUMBENT PROTECTIONS MEAN TERM LIMITS MAY GIVE VOTERS A GREATER CHOICE THAN THEY HAVE NOW IT ALSO FOUND THAT TERM LIMITS ALLOW VOTERS TO FREELY ASSOCIATE WITH OTHERS TO ADVANCE THEIR BELIEFS OR SUPPORT A TERM LIMITED INCUMBENT FOR ANOTHER OFFICE JUDGE DWYER'S DECISION COMPLETELY CONTRADICTS THE CALIFORNIA COURT AND WILL BE HOTLY ARGUED ON APPEAL HE FLATLY DECLARES THAT STATE TERM LIMITS UNCONSTITUTIONALLY ADD TO THE AGE RESIDENCY AND CITIZENSHIP QUALIFICATIONS IN THE CONSTITUTION BUT POWELL V. MCCORMACK THE NINETEEN SIXTY NINE SUPREME COURT DECISION HE RELIES ON HELD ONLY THAT CONGRESS COULDN'T ADD TO THE QUALIFICATIONS SINCE THEN THE SUPREME COURT HAS FREQUENTLY UPHELD MANY STATE LAWS RESTRICTING WHO CAN RUN FOR OFFICE GRIFFIN BELL WHO WAS JIMMY CARTER'S ATTORNEY GENERAL AND WAS LEAD COUNSEL FOR THE TERM LIMITS FORCES ISN'T SURPRISED BY JUDGE DWYER'S RULING THE SAME HIGH COURT THAT'S ALLOWED STATES IN THE PAST TO CONTROL THEIR OWN ELECTIONS WILL ACT LIKEWISE WHEN THIS CASE REACHES THEM HE SAYS MEANWHILE THERE'S A CHANCE THAT SPEAKER FOLEY MAY NOT EVEN BE REPRESENTING HIS DISTRICT WHEN HIS NINETEEN NINETY EIGHT TERM LIMIT KICKS IN IN NINETEEN NINETY TWO MR. FOLEY WON WITH ONLY FIFTY FIVE PERCENT OF THE VOTE AND A NEW FABRIZIO SLASH MCLAUGHLIN POLL OF HIS DISTRICT FINDS ONLY FORTY THREE PERCENT OF RESPONDENTS BELIEVE HE DESERVES RE ELECTION A STUNNING SEVENTY FOUR PERCENT BELIEVE SPEAKER FOLEY SHOULD DROP HIS SUIT TO OVERTURN THE VOTERS' PREFERENCE FOR TERM LIMITS INCUMBENTS WHO VIEW JUDGE DWYER'S RULING AS AN ALL CLEAR SIGNAL SHOULD THINK AGAIN MOST CAREER POLITICIANS AREN'T CUTE LIKE SPOTTED OWLS AND MOST JUDGES AND VOTERS AREN'T BOTHERED BY THE THOUGHT OF ENDANGERING THESE POLS FEW TEARS WILL BE SHED WHEN THEY'RE FORCED OUT FROM THEIR SANCTUARY AND RETURNED TO THE WILDS OF REAL LIFE FOKKER N. V. SAID IT WILL CUT AROUND ONE THOUSAND NINE HUNDRED JOBS IN NINETEEN NINETY FOUR AS PART OF A RESTRUCTURING PLAN ANNOUNCED THIS MONTH THE AMSTERDAM AEROSPACE COMPANY ALSO SAID IT WILL REDUCE PRODUCTION TO ABOUT FORTY AIRCRAFT A YEAR FROM ITS CURRENT ANNUAL PRODUCTION OF AROUND SIXTY EVEN WITH THE DEEP JOB CUTS SOME STOCK ANALYSTS SAY THEY DON'T EXPECT FOKKER TO SWING BACK INTO THE BLACK BEFORE NINETEEN NINETY SEVEN AND AFTER THAT THEY SEE LITTLE PROSPECT FOR STRONG PROFIT GAINS THE COMPANY SAID THAT THE REMAINING WORK FORCE AFTER THE CUT OF ONE THOUSAND NINE HUNDRED JOBS WILL TOTAL SLIGHTLY MORE THAN TEN THOUSAND PEOPLE FOKKER IS FIFTY ONE PERCENT CONTROLLED BY THE DEUTSCHE AEROSPACE A. G. ARM OF GERMANY'S DAIMLER BENZ A. G. MAGMA COPPER COMPANY SAID IT INCREASED THE RESERVES OF COPPER ORE AT ITS PENDING ROBINSON MINE NEAR ELY NEVADA BY TWENTY FIVE PERCENT TO TWO HUNDRED FIFTY TWO MILLION TONS OF ORE THE INCREASE BOOSTS RESERVES AT THE MINE SITE TO TWO POINT ONE BILLION POUNDS OF RECOVERABLE COPPER AND ONE POINT NINE MILLION OUNCES OF GOLD THE TUCSON COMPANY BOOSTED ITS TOTAL COPPER RESERVES BY FIFTY PERCENT OVER NINETEEN NINETY THREE TO SEVEN POINT SEVEN BILLION POUNDS ON JANUARY FIRST NINETEEN NINETY FOUR FROM FIVE BILLION POUNDS ON JANUARY FIRST NINETEEN NINETY THREE MAGMA RELEASED THE RESERVE NUMBERS AS PART OF THE QUOTE GROWTH STORY QUOTE IT WILL BEGIN SPREADING TO ANALYSTS IN MEETINGS TODAY WE'RE A COMPANY THAT'S HAD LIMITED RESERVES AND INCREASING ORE PRODUCTION SAID PRESIDENT AND CHIEF EXECUTIVE J. BURGESS WINTER IN AN INTERVIEW WE'RE EXCITED ABOUT THIS INCREASE IN RESERVES HARCOURT GENERAL INCORPORATED IS CONSIDERING THE SALE OF ITS INSURANCE BUSINESSES AS PART OF A PLAN TO STREAMLINE THE COMPANY AND FOCUS ON PUBLISHING THE MOVE FOLLOWS A SPINOFF OF HARCOURT'S MOVIE THEATER BUSINESS TO SHAREHOLDERS LAST SEPTEMBER THE INSURANCE BUSINESSES WITH THREE HUNDRED THIRTY MILLION DOLLARS IN ASSETS COULD SELL FOR FOUR HUNDRED MILLION DOLLARS OR MORE ANALYSTS SAID HARCOURT WHOSE THREE POINT SIX SIX BILLION DOLLARS IN ANNUAL REVENUE COMES PRIMARILY FROM PUBLISHING AND SPECIALTY RETAILING ACQUIRED THE INSURANCE BUSINESSES AS PART OF ITS PURCHASE OF PUBLISHER HARCOURT BRACE IN NOVEMBER NINETEEN NINETY ONE THE INSURANCE BUSINESSES WHICH PRIMARILY UNDERWRITE INDIVIDUAL LIFE HEALTH ACCIDENT AND CREDIT INSURANCE POLICIES AND SELL ANNUITY PRODUCTS CONTRIBUTED FIVE HUNDRED FORTY EIGHT MILLION DOLLARS TO HARCOURT'S NINETEEN NINETY THREE REVENUE AND SEVENTY POINT NINE MILLION DOLLARS TO OPERATING PROFIT INCLUDING TWENTY SEVEN POINT SEVEN MILLION DOLLARS IN CAPITAL GAINS IN FISCAL NINETEEN NINETY THREE ENDED OCTOBER THIRTY FIRST HARCOURT GENERAL HAD OPERATING PROFIT OF THREE HUNDRED FOURTEEN POINT THREE MILLION DOLLARS MARTIN ROMM AN ANALYST AT C. S. FIRST BOSTON INCORPORATED SAID A SALE OF THE INSURANCE COMPANIES WOULD BE A POSITIVE STEP BECAUSE HARCOURT DOESN'T INTEND TO ENLARGE THE BUSINESSES QUOTE A SALE WOULD CONVERT THE BUSINESSES TO CASH THE MARKET WILL GIVE HARCOURT CREDIT FOR THAT MR. ROMM SAID HARCOURT GENERAL SAID LAST DECEMBER IT MIGHT SELL THE OPERATIONS IF AN ATTRACTIVE PUBLISHING ACQUISITION CAME ALONG THAT REQUIRED ADDITIONAL FUNDS THE COMPANY WASN'T FREE TO SELL THE INSURANCE UNIT UNTIL NOVEMBER NINETEEN NINETY THREE BECAUSE OF TAX CONSIDERATIONS AND PLEDGES THAT IT MADE TO STATE INSURANCE COMMISSIONERS AT THE TIME OF THE HARCOURT BRACE ACQUISITION IT SAID PETER FARWELL A HARCOURT SPOKESMAN SAID THAT WHILE THE COMPANY IS LOOKING AGGRESSIVELY FOR INVESTMENT OPPORTUNITIES IN PUBLISHING NO DEALS ARE PENDING THE INSURANCE BUSINESSES BASED IN ORLANDO FLORIDA INCLUDE FEDERAL HOME LIFE INSURANCE COMPANY PHF LIFE INSURANCE COMPANY AND THE HARVEST LIFE INSURANCE COMPANY HARCOURT GENERAL INCORPORATED'S INSURANCE BUSINESSES HAVE THREE POINT TWO BILLION DOLLARS IN ASSETS NOT THREE HUNDRED THIRTY MILLION DOLLARS AS STATED IN AN ARTICLE IN YESTERDAY'S BUSINESS BRIEFS SECTION RICHARD RAINWATER A WELL KNOWN TEXAS INVESTOR FILED A STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL THIRTEEN MILLION THREE HUNDRED FIFTY THOUSAND SHARES IN A REAL ESTATE INVESTMENT TRUST AT TWENTY FIVE DOLLARS A SHARE THE SHARES WILL REPRESENT SIXTY SIX POINT THREE PERCENT OF THE EQUITY IN THE R. E. I. T. THE BALANCE WILL BE HELD BY MANAGEMENT AND INVESTORS WHO CONTRIBUTE PROPERTIES TO THE TRUST THE TRUST CRESCENT REAL ESTATE EQUITIES INCORPORATED WILL OWN UPSCALE RETAIL CENTERS OFFICE BUILDINGS AND SINGLE FAMILY SUBDIVISIONS IN DENVER AND TEXAS THE FILING REPORTED THAT THE COMPANY WILL HAVE SUBSTANTIALLY NO DEBT FOLLOWING THE THREE HUNDRED THIRTY FIVE MILLION DOLLAR OFFERING AND WILL HAVE A THREE HUNDRED MILLION DOLLAR LINE OF CREDIT THE FILING SAID TWO HUNDRED FORTY THREE POINT SEVEN MILLION DOLLARS OF THE PROCEEDS WILL BE USED TO REPAY DEBT SECURED BY MR. RAINWATER AND BY PROPERTIES THAT WILL BE HELD BY THE R. E. I. T. ABOUT SEVEN POINT FIVE MILLION DOLLARS RAISED BY THE FORMATION OF RESIDENTIAL DEVELOPMENT CORPORATIONS WILL BE USED TO PAY THE TAXES INCURRED AS CURRENT INVESTORS OF THE PROPERTIES TRANSFER THEIR HOLDINGS TO THE R. E. I. T.S THE CURRENT INVESTORS INCLUDE MR. RAINWATER ROSEWOOD GROUP AND A LONG LIST OF INDIVIDUALS MR. RAINWATER'S FORMATION OF A R. E. I. T. WAS EXPECTED AND IS PART OF A RUSH OF R. E. I. T.S THAT HAVE COME ON THE MARKET OVER THE PAST YEAR OR SO LOW INTEREST RATES ON MONEY MARKETS HAVE SENT INVESTORS SCRAMBLING FOR ALTERNATIVE INVESTMENTS WITH HIGHER YIELDS AND R. E. I. T.S HAVE BEEN OFFERING DIVIDEND YIELDS OF SIX POINT FIVE PERCENT OR MORE NORWAY'S TRADE SURPLUS NARROWED SEVENTEEN PERCENT TO FOUR POINT SIX BILLION KRONER SIX HUNDRED EIGHT POINT ONE MILLION DOLLARS IN JANUARY FROM FIVE POINT SIX BILLION KRONER A YEAR EARLIER STATISTICS NORWAY THE NORWEGIAN STATISTICAL AGENCY SAID THE BOARD OF LWT HOLDINGS P. L. C. A BRITISH TELEVISION CONCERN URGED SHAREHOLDERS TO REJECT THE FINAL HOSTILE TAKEOVER OFFER OF LEISURE CONCERN GRANADA GROUP P. L. C. AS TOO LOW LWT ALSO AGAIN QUESTIONED GRANADA'S MOTIVES A FREQUENT DEFENSE DURING THE TWO MONTH BATTLE QUOTE GRANADA NEEDS TO BUY LWT'S EARNINGS TO OFFSET THE LONG TERM DECLINE IN ITS TELEVISION RENTAL BUSINESS QUOTE IT SAID GRANADA IS OFFERING THIRTEEN NEW GRANADA SHARES FOR EVERY TEN LWT SHARES PLUS A SMALL AMOUNT OF CASH VALUING THE TARGET AT SEVEN HUNDRED SEVENTY SIX MILLION POUNDS ONE POINT ONE THREE BILLION DOLLARS PACE AMERICAN GROUP INCORPORATED SAID IT NOTIFIED TWO TOP EXECUTIVES IT INTENDS TO DISMISS THEM BECAUSE AN INTERNAL INVESTIGATION FOUND EVIDENCE OF QUOTE SELF DEALING QUOTE AND QUOTE UNDISCLOSED FINANCIAL RELATIONSHIPS QUOTE THE EXECUTIVES ARE DON H. PACE COFOUNDER PRESIDENT AND CHIEF EXECUTIVE OFFICER AND GREG S. KAPLAN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR. PACE BELIEVES THAT HE IS BEING TREATED UNFAIRLY BY THE COMPANY AND THAT THE ACTIONS OF THE COMPANY ARE BEING MOTIVATED BY BAD FAITH AND ARE NOT IN THE BEST INTERESTS OF SHAREHOLDERS SAID HIS LAWYER PAUL FISCHER OF WASHINGTON D. C. MR. KAPLAN'S LAWYER WILLIAM G. WALKER SAID MR. KAPLAN IS LEGALLY AND ETHICALLY INNOCENT OF ANY WRONGDOING ALL OF HIS ACTIVITIES WERE KNOWN TO HIS CORPORATE SUPERIORS AT ALL TIMES BOTH EXECUTIVES HAVE BEEN ON LEAVE FROM THE SURETY BOND CONCERN SINCE EARLY THIS MONTH PENDING THE FINDINGS OF AN INTERNAL INVESTIGATION BY A BOARD COMMITTEE UNDER TERMS OF THE EXECUTIVES' EMPLOYMENT CONTRACTS THEY HAVE TWENTY ONE DAYS TO RESPOND TO THE NOTICES BEFORE THEY CAN BE DISMISSED THE COMPANY SAID IN A STATEMENT THE ALLEGED ACTS INCLUDE MR. PACE'S UNDISCLOSED RECEIPT OF PORTIONS OF COMMISSIONS PAID BY A SUBSIDIARY OF THE COMPANY TO ONE OF ITS AGENTS AND THE UNDISCLOSED RECEIPT BY BOTH EXECUTIVES OF FEES PAID BY CONTRACTORS WHO WERE BONDED BY A COMPANY SUBSIDIARY THROUGH A FORMER AGENT THE STATEMENT SAID COMPANY OFFICIALS INCLUDING ITS GENERAL COUNSEL DANDO B. CELLINI DIDN'T RETURN CALLS SEEKING CLARIFICATION IN ITS STATEMENT THE COMPANY SAID THE INVESTIGATION CONTINUES BUOYED BY THE PROSPECT OF NEAR TERM GROWTH MANUFACTURERS AND CONSTRUCTION FIRMS CONTINUE TO BE OPTIMISTIC ABOUT NEW ORDERS EMPLOYMENT AND PRICES ACCORDING TO TWO SURVEYS BY DUN AND BRADSTREET CORPORATION THE MONTHLY SURVEY OF ONE THOUSAND MANUFACTURERS NATIONWIDE SHOWED AN INCREASE IN EXPECTATIONS ABOUT THE COMING THREE MONTHS DESPITE A SHARP DECLINE IN PRODUCTION AND NEW ORDERS REPORTED IN THE PAST THREE MONTHS WHICH WERE LARGELY THE RESULT OF HARSH WEATHER CONDITIONS DOUGLAS P. HANDLER MANAGER OF ECONOMIC ANALYSIS FOR THE BUSINESS INFORMATION SERVICES COMPANY SPECULATED THAT MANUFACTURERS COULD OVERPRODUCE IN THE FIRST PART OF THE YEAR AND BE FORCED TO MAKE CYCLICAL CUTBACKS IN PRODUCTION D. AND B'S INDUSTRIAL SENTIMENT INDEX WAS UP FOR THE SECOND CONSECUTIVE MONTH RISING TO TWENTY ONE FROM TWENTY THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDING COMPANIES EXPECTING INCREASES IN THE COMING THREE MONTHS IN ORDERS PRODUCTION AND OTHER FACETS OF MANUFACTURING MINUS THE PERCENTAGE EXPECTING DECREASES D. AND B'S SURVEY OF TWO HUNDRED CONSTRUCTION FIRMS INDICATED STRONG OPTIMISM FOR NEAR TERM INCREASES IN EMPLOYMENT NEW ORDERS AND PRICES IN THE INDUSTRY THE INDEX MEASURING THREE MONTH EXPECTATIONS FOR ORDERS SHOT UP TO FORTY THREE IN JANUARY FROM EIGHTEEN IN DECEMBER THE INDEX FOR EMPLOYMENT ROSE TO THIRTY THREE FROM FIFTEEN AND THE INDEX FOR PRICES ROSE TO TWENTY THREE FROM NINETEEN HOWEVER ORDERS AND EMPLOYMENT IN JANUARY FELL SHARPLY FROM DECEMBER'S LEVELS WITH STABLE INTEREST RATES QUOTE THE RISE IN CONSTRUCTION ORDERS IS NOW DRIVEN BY IMPROVING ECONOMIC CONDITIONS THROUGHOUT THE COUNTRY RATHER THAN BY FALLING INTEREST RATES QUOTE MR. HANDLER SAID A SHAREHOLDER FILED A SUIT IN U. S. DISTRICT COURT HERE AGAINST LONGHORN STEAKS INCORPORATED FIVE OF ITS EXECUTIVES AND TWO MANAGING UNDERWRITERS ALLEGING THAT THE COMPANY MISREPRESENTED ITS GROWTH PROSPECTS AND INFLATED ITS STOCK THE SUIT WHICH SEEKS TO BE CONSIDERED AS A CLASS ACTION SEEKS UNSPECIFIED DAMAGES THE SUIT ALSO CONDEMNS TOP EXECUTIVES FOR SELLING OFF SOME OF THEIR HOLDINGS PRIOR TO THE COLLAPSE OF THE STOCK LAST SPRING WHICH RESULTED FROM LOWER THAN EXPECTED EARNINGS REPORTS THE ATLANTA COMPANY WHICH OPERATES FORTY SIX STEAK RESTAURANTS IN THE SOUTHEAST DENIED THE ALLEGATIONS RONALD SAN MARTIN CHIEF FINANCIAL OFFICER WOULDN'T COMMENT ON THE SUIT BUT HE SAID THAT THE COMPANY HAS QUOTE CURTAILED OUR GROWTH QUOTE THIS YEAR AND WON'T BUILD THE EIGHTEEN RESTAURANTS IT HAD PLANNED MR. SAN MARTIN SAID THAT THE CHAIN'S FOUNDERS GEORGE MCKERROW SENIOR AND GEORGE MCKERROW JUNIOR HELD FORTY PERCENT OF THE COMPANY'S SHARES UNTIL LAST MARCH AFTER WHICH POINT THEY SOLD OFF ABOUT HALF THEIR HOLDINGS MR. MCKERROW JUNIOR CHAIRMAN COULDN'T BE REACHED FOR COMMENT HEALTH MAINTENANCE ORGANIZATIONS AND OTHER INSURERS ARE STARTING TO PAY FOR A LOT OF QUOTE EXPERIMENTAL QUOTE TREATMENTS THAT THEY TRADITIONALLY HAVE BALKED AT COVERING THE NEW LENIENCY REFLECTS H. M. O.S' GROWING CONCERN ABOUT THEIR LEGAL VULNERABILITY IF AN AILING MEMBER IS DENIED CARE RECENTLY A CALIFORNIA H. M. O. HEALTH NET LOST A HIGH PROFILE COURT CASE INVOLVING A THIRTY SEVEN YEAR OLD WOMAN WHO COULDN'T GET THE HEALTH PLAN TO PROMPTLY APPROVE EXPERIMENTAL THERAPY FOR HER BREAST CANCER THE WOMAN PAID FOR THE TREATMENT ON HER OWN AND LATER DIED A JURY AWARDED HER ESTATE EIGHTY NINE MILLION DOLLARS IN DAMAGES THIS IS A HOT ISSUE AND IT JUST GOT HOTTER SAYS HYMAN KAHN A MEDICAL DIRECTOR AT U. S. HEALTHCARE INCORPORATED BLUE BELL PENNSYLVANIA LIKE MOST H. M. O.S AND INSURERS U. S. HEALTHCARE SAYS IN ITS CONTRACTS WITH EMPLOYERS AND MEMBERS THAT IT WON'T PAY FOR EXPERIMENTAL CARE BUT WE AREN'T GOING TO HIDE BEHIND THAT DOCTOR KAHN SAYS IF THERE'S A MEDICAL REQUEST TO DO SOMETHING WE WILL ACT ON ITS MERITS MORE OFTEN THAN NOT WE COVER IT MANY H. M. O.S ARE SETTING UP PANELS OF INDEPENDENT RESEARCHERS TO HELP THEM DECIDE WHEN EXPERIMENTAL CARE IS APPROPRIATE THAT'S AN APPROACH TAKEN BY U. S. HEALTHCARE WHICH SAYS THAT FOR SOME TYPES OF CANCER IT NOW ENDS UP APPROVING NINETY PERCENT OF THE REQUESTS FOR COVERAGE OF EXPERIMENTAL CARE THESE PIONEERING TREATMENTS SOMETIMES CARRY STEEP PRICE TAGS EXPERIMENTAL DRUGS TO TREAT CANCER OR AIDS CAN COST THREE THOUSAND DOLLARS OR MORE FOR PROLONGED TREATMENT SPENDING FOR LASER SURGERY TO TREAT LUNG DISEASE CAN TOP TWENTY THOUSAND DOLLARS AND NEW TYPES OF ORGAN TRANSPLANTS OFTEN RUN MORE THAN ONE HUNDRED THOUSAND DOLLARS MANY SERIOUSLY ILL PATIENTS WANT SUCH PIONEERING TREATMENT AND ARE WILLING TO SUE TO GET COVERAGE RICHARD CARTER AN ALEXANDRIA VIRGINIA LAWYER SAYS THAT IN THE PAST FOUR YEARS HE HAS HANDLED THREE HUNDRED CASES INVOLVING PATIENTS' EFFORTS TO GET EXPERIMENTAL CARE PAID FOR IN MOST CASES MR. CARTER SAYS RECALCITRANT H. M. O.S AND INSURERS BACKED DOWN QUICKLY AND AGREED TO PAY I'D SAY THAT LESS THAN TWENTY FIVE PERCENT OF CASES HAVE GONE TO COURT AND ONLY EIGHT HAVE GONE THROUGH A FULL TRIAL HE SAYS THIS WILLINGNESS TO BEND AFFECTS H. M. O.S' EFFORTS TO HOLD DOWN COSTS ON THEIR MOST COMPLEX CASES QUOTE IN A VACUUM WE'D LIKE TRUE EVIDENCE THAT SOMETHING IMPROVES PEOPLE'S HEALTH BEFORE APPROVING IT QUOTE SAYS SIMEON RUBENSTEIN HEAD OF THE NEW TECHNOLOGY COMMITTEE AT GROUP HEALTH OF PUGET SOUND BUT THE REALITY OF POLITICS AND SOCIAL PRESSURE IS THAT THINGS AREN'T ALWAYS THAT SIMPLE SOME OF THE KEENEST DEBATES INVOLVE HIGH DOSE CHEMOTHERAPY FOLLOWED BY A BONE MARROW TRANSPLANT THAT HELPS REVIVE A CANCER PATIENT'S WHITE BLOOD CELL PRODUCTION SUCH TREATMENTS CAN COST AS MUCH AS TWO HUNDRED THOUSAND DOLLARS GROUP HEALTH DID AN ABOUT FACE ON ITS POLICY FOR BONE MARROW TRANSPLANTS LAST SUMMER AFTER A MEMBER THREATENED TO SUE OVER THE SEATTLE H. M. O.'S PLANS TO DENY COVERAGE DOCTOR RUBENSTEIN SAYS GROUP HEALTH CHOSE TO COVER SUCH TREATMENT FOR BREAST CANCER BECAUSE NEW DATA FROM DUKE UNIVERSITY SUGGESTED THAT BONE MARROW TRANSPLANTS WORKED BETTER THAN EXPECTED HE ADDS THOUGH THAT THE THREAT OF A SUIT SPURRED HIS H. M. O. TO RE EXAMINE THE ISSUE AS PRESSURE ON INSURERS MOUNTS PATIENTS AND THEIR FAMILIES VOICE RELIEF MARK BURKDOLL A CLEARLAKE CALIFORNIA HOSPITAL TECHNICIAN SAYS HE WAS BRACED FOR A MAJOR BATTLE LAST SUMMER WITH HIS H. M. O. HEALTH PLAN OF THE REDWOODS MR. BURKDOLL'S SIX YEAR OLD SON COLIN WAS BATTLING BRAIN CANCER AND DOCTORS HAD RECOMMENDED HIGH DOSE CHEMOTHERAPY FOLLOWED BY A BONE MARROW TRANSPLANT TO MR. BURKDOLL'S SURPRISE THE H. M. O. QUICKLY AGREED TO PAY FOR THE TREATMENT AFTER CONSULTING WITH AN INDEPENDENT DOCTOR AT CHILDREN'S HOSPITAL IN NEW YORK WHO SAID IT WAS MEDICALLY NECESSARY I FELT AS THOUGH HEALTH PLAN OF THE REDWOODS WAS GOING TO BAT FOR ME MR. BURKDOLL SAYS HIS SON UNDERWENT TREATMENT IN OCTOBER AND APPEARS TO BE DOING WELL MOST OF THE LARGEST H. M. O.S AND INSURERS NOW REGULARLY USE PANELS OF INDEPENDENT MEDICAL EXPERTS TO HELP DECIDE WHETHER TO AUTHORIZE COSTLY EXPERIMENTAL CARE AETNA LIFE AND CASUALTY COMPANY FOR EXAMPLE REFERS CANCER CASES TO A PANEL OF ONE HUNDRED THIRTY DOCTORS AT INSTITUTIONS SUCH AS STANFORD UNIVERSITY AND THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES THE PANEL IS OVERSEEN BY GRACE POWERS MONACO A PATIENT RIGHTS ACTIVIST IN WASHINGTON D. C. WHO PICKS THREE PANELISTS TO REVIEW MEDICAL RECORDS THESE DOCTORS THEN ISSUE OPINIONS ABOUT WHETHER EXPERIMENTAL TREATMENT IS WARRANTED THIS MAKES IT A MUCH MORE COOPERATIVE RELATIONSHIP WITH PATIENTS SAYS WILLIAM MCGIVNEY DIRECTOR OF TECHNOLOGY ASSESSMENT AT AETNA HE SAYS THE OUTSIDE PANEL APPROVES ABOUT SIXTY FIVE PERCENT OF THE EXPERIMENTAL TREATMENTS SENT ITS WAY AT U. S. HEALTHCARE BREAST CANCER PATIENTS GENERALLY ARE OFFERED ACCESS TO CONTROLLED RESEARCH TRIALS WHERE THEY HAVE AT LEAST A FIFTY PERCENT CHANCE OF GETTING AN EXPERIMENTAL TREATMENT IN SOME CASES THE H. M. O. LETS PATIENTS UNDERGO BONE MARROW TRANSPLANTS RIGHT AWAY RATHER THAN TAKE A CHANCE ON THE RESEARCH TRIALS THERE'S A LARGE GRAY AREA BETWEEN STANDARD AND EXPERIMENTAL CARE SAYS HARRIS BERMAN CHIEF EXECUTIVE OFFICER OF TUFTS ASSOCIATED HEALTH PLANS WALTHAM MASSACHUSETTS HIS H. M. O. HAS REGULARLY PAID FOR EXPERIMENTAL SERVICES THAT IT THINKS HAVE PROMISE INCLUDING FOURTEEN OF FIFTEEN REQUESTS LAST YEAR FOR BONE MARROW TRANSPLANTS IN BREAST CANCER PATIENTS THE FEDERAL GOVERNMENT AT ONE TIME PAID FOR MOST EXPERIMENTAL CARE AT ESTABLISHED MEDICAL CENTERS BUT IN THE EARLY NINETEEN EIGHTIES FEDERAL FUNDING DRIED UP WHILE COSTS FOR SUCH TREATMENT SOARED AS A RESULT MS. MONACO SAYS INSURERS BEGAN IN THE MID NINETEEN EIGHTIES TO DENY MORE CARE UNDER THE EXPERIMENTAL TREATMENT EXCLUSION BUT OVER THE PAST TWO YEARS SHE SAYS MORE AND MORE INSURERS ARE SAYING IF THE FEDS AREN'T GOING TO PAY FOR CLINICAL TRIALS MAYBE WE SHOULD SOME H. M. O.S IN FACT ARE TRYING TO DEVELOP NEW CONTRACT LANGUAGE THAT WILL DO AWAY WITH THE DISPUTE ABOUT WHAT IS EXPERIMENTAL CARE AND WHAT ISN'T A MAJOR COLORADO H. M. O. QUAL MED INCORPORATED HAS STARTED LETTING EMPLOYERS CHOOSE BETWEEN A PLAN THAT COVERS A WIDE RANGE OF CONTROVERSIAL NEW TREATMENTS SUCH AS LUNG TRANSPLANTS FOR CANCER PATIENTS AND ONE THAT SPECIFICALLY EXCLUDES THEM THE PRICE DIFFERENCE AMOUNTS TO ABOUT ONE POINT FIVE PERCENT OR TWO DOLLARS AND SIXTY CENTS PER MEMBER PER MONTH SAYS MALIK HASAN QUAL MED'S CHIEF EXECUTIVE OFFICER DOCTOR HASAN SAYS HE THINKS THE PREMIUM PLAN WILL DO WELL WITH LARGE CORPORATIONS AND THEIR HEALTH PLANS MAJOR EMPLOYERS DON'T WANT THE STRIFE THAT OFTEN COMES WITH DENYING INSURANCE COVERAGE TO A DESPERATELY ILL EMPLOYEE HE OBSERVES QUAL MED ALSO WOULD FIND A MORE EXPLICIT COVERAGE SYSTEM EASIER TO MANAGE DOCTOR HASAN SAYS HIS INTEREST IS MORE THAN ACADEMIC QUAL MED LAST MONTH ACQUIRED HEALTH NET THE CALIFORNIA H. M. O. THAT LOST THE EIGHTY NINE MILLION DOLLARS DAMAGE CASE RHONE POULENC RORER INCORPORATED AND IMMUNE RESPONSE CORPORATION PARTNERS IN A JOINT VENTURE TO DEVELOP A VACCINE AGAINST HUMAN IMMUNODEFICIENCY VIRUS INFECTION SAID THEY RESORTED TO ARBITRATION TO RESOLVE A DISPUTE ABOUT THE VENTURE'S MANAGEMENT RHONE POULENC RORER A UNIT OF THE FRENCH PHARMACEUTICAL COMPANY RHONE POULENC S. A. INITIATED THE ARBITRATION FEBRUARY EIGHTH WITH A FILING BEFORE THE AMERICAN ARBITRATION ASSOCIATION IN SAINT LOUIS IMMUNE RESPONSE BASED IN CARLSBAD CALIFORNIA FILED ITS OWN DEMAND FOR ARBITRATION THE NEXT DAY BOTH COMPANIES WERE QUICK TO SAY THEY DON'T EXPECT THE DISPUTE TO SLOW DEVELOPMENT OF THE AIDS VIRUS VACCINE DOCTOR DENNIS CARLO CHIEF OPERATING OFFICER OF IMMUNE RESPONSE SAID THE DISPUTE FOCUSES ON WHICH COMPANY WILL CONTROL THE CLINICAL TRIALS AND REGULATORY REVIEWS REQUIRED FOR THE DRUG'S EVENTUAL APPROVAL RHONE POULENC SPOKESMAN BOB PEARSON CONTENDS THAT UNDER A NINETEEN NINETY TWO AGREEMENT THE FIFTY TO FIFTY JOINT VENTURE IMMUNIZATION PRODUCTS LIMITED HAS CONTROL OF ALL ASPECTS OF THE DRUG'S DEVELOPMENT INCLUDING CLINICAL DEVELOPMENT REGULATORY AFFAIRS MARKETING AND MANUFACTURING AS OF THE END OF NINETEEN NINETY THREE BOTH COMPANIES HAD CONTRIBUTED HALF OF A TOTAL FIFTY MILLION DOLLARS TO THE JOINT VENTURE BOTH COMPANIES EMPHASIZED THEY REMAIN ENTHUSIASTIC ABOUT THE VACCINE'S PROSPECTS MADE BY IMMUNE RESPONSE IT TAKES THE WHOLE AIDS VIRUS KILLING IT WITH A CHEMICAL AND RADIATION AND PEELING OFF ITS OUTER PROTEIN COAT IT WAS DESIGNED BY POLIO VACCINE PIONEER JONAS SALK TO TREAT PEOPLE WHO ALREADY HAVE THE H. I. V. VIRUS FOR YEARS IT HAS BEEN FASHIONABLE TO DERIDE AMERICAN COMPETITIVENESS AMERICAN BUSINESSES HAVE BEEN RIDICULED FOR INVENTING SUCH PRODUCTS AS THE V. C. R. BUT FAILING TO CAPITALIZE ON THEM JAPANESE COMPANIES ON THE OTHER HAND HAVE BEEN ENDLESSLY PRAISED FOR DOMINATING MARKETS ONCE RULED BY AMERICAN COMPANIES SOME SAY THIS SUCCESS DERIVES FROM THE QUOTE JAPANESE MODEL QUOTE OF MANAGEMENT WHICH EMPHASIZED MARKET SHARE AT THE EXPENSE OF PROFITS EUROPEAN COMPANIES MEANWHILE ARE PRAISED FOR THEIR SUPPORT OF EXPENSIVE GOVERNMENT SOCIAL WELFARE PROGRAMS EVEN AS THEIR COMPETITIVE POSITION HAS DETERIORATED DESPITE GOVERNMENT SUBSIDIES BY CONTRAST AMERICAN FIRMS ARE ALLEGED TO LOSE MARKET SHARE BECAUSE THEY LACK LONG TERM VISION CRITICS CHARGE THAT THEY CONDUCT MASSIVE LAYOFFS SUCH AS A. T. AND T.'S FIFTEEN THOUSAND PERSON REDUCTION EARLIER THIS MONTH IN THE NAME OF SHORT TERM PROFITABILITY MANAGEMENT FASHIONS COME AND GO BUT ULTIMATELY BUSINESS RESULTS ARE MEASURED IN TERMS OF SALES AND PROFITS OVER THE LONG TERM THE TABLE NEARBY PRESENTS THE SCORECARDS OF AMERICAN JAPANESE AND EUROPEAN BUSINESSES OVER THE PAST SIX YEARS IN GLOBALLY COMPETITIVE INDUSTRIES THE DATA INCLUDE GLOBAL SALES INCLUDING THOSE OF FOREIGN SUBSIDIARIES THE RESULTS CLEARLY DEMONSTRATE THAT AMERICAN OWNERS MANAGERS AND WORKERS HAVE COMPETED AND WON TAKING HOME THIRTY SEVEN PERCENT OF SALES AND FORTY EIGHT PERCENT OF PROFITS IN GLOBAL MARKETS IN THIS SENSE THE U. S. HAS PRODUCED SOMETHING CLOSE TO THE TRADE VERSION OF OLYMPIC BASKETBALL'S DREAM TEAM AMERICAN INDUSTRY IS THE LEADER OR IS HIGHLY COMPETITIVE IN VIRTUALLY EVERY MAJOR GLOBAL INDUSTRY THIS SUCCESS RESULTS FROM WELL PLANNED AND WELL EXECUTED CAPITAL INVESTMENTS RESEARCH AND DEVELOPMENT ADVERTISING MARKETING PRODUCTION DESIGN AND PERSONNEL DEVELOPMENT OVER SEVERAL DECADES AND ALL OF THIS HAS COME ABOUT WITHOUT GOVERNMENT PLANNING IT IS THE TRIUMPH OF THE FREE MARKET IT IS CURIOUS THAT WHILE IT BECAME CONVENTIONAL WISDOM THAT U. S. BUSINESSES WERE FALLING BEHIND COMPETITIVELY U. S. ENTREPRENEURS WERE DEVELOPING THE WORLD'S LEADING COMPANIES IN MANY TECHNOLOGICALLY INTENSIVE INDUSTRIES U. S. COMPANIES ARE THE LEADERS IN DATA PROCESSING INCLUDING COMPUTERS AND SOFTWARE ELECTRONIC EQUIPMENT ELECTRICAL COMPONENTS AND HEALTH AND PERSONAL CARE INCLUDING PHARMACEUTICALS IN TECHNOLOGY TODAY THE TWO MOST POWERFUL GLOBAL COMPANIES ARE INTEL AND MICROSOFT BOTH AMERICAN AMERICA HAS BOEING AND MCDONNELL DOUGLAS WHO TOGETHER WOULD HAVE A VIRTUAL MONOPOLY OF THE COMMERCIAL AIRCRAFT MARKET IF NOT FOR AIRBUS'S EUROPEAN UNION SUBSIDIES THE PHARMACEUTICAL INDUSTRY IS AN ESPECIALLY INTERESTING CASE GIVEN THE CLINTON ADMINISTRATION'S HOSTILITY TOWARD IT THIS INDUSTRY ALONE ACCOUNTED FOR MORE THAN TEN PERCENT OF THE PROFITS EARNED BY ALL AMERICAN COMPANIES OVER THE PAST SIX YEARS YET THIS IS AN INDUSTRY THAT NECESSARILY MUST TAKE A VERY LONG TERM VIEW SINCE IT OFTEN TAKES A DECADE AND HUNDREDS OF MILLIONS OF DOLLARS TO DEVELOP A SINGLE NEW DRUG CLEARLY AMERICAN BUSINESSMEN ARE NOT THE MYOPIC SHORT TERMERS THEY ARE OFTEN ACCUSED OF BEING OF COURSE THE U. S. DOES NOT LEAD IN EVERY CATEGORY IN STEEL PRODUCTION FOR EXAMPLE U. S. COMPANIES EARNED A MINUSCULE TWO POINT THREE PERCENT OF TOTAL PROFITS WHILE JAPANESE COMPANIES CLAIMED MORE THAN FIFTY PERCENT U. S. COMPANIES ON THE OTHER HAND ARE FAR AHEAD IN THE BUSINESSES OF TOMORROW AEROSPACE ELECTRONIC EQUIPMENT DATA PROCESSING WHICH INCLUDES SOFTWARE SALES AND HEALTH CARE WHAT U. S. COMPANIES IN FACT HAVE DONE IS LEAPFROG THEIR RIVALS GIVING UP MARKET SHARE IN LOW PROFIT INDUSTRIES WHILE MOVING AHEAD IN HIGH PROFIT AREAS AND HIGH PROFIT INDUSTRIES ARE NOT NECESSARILY ONLY IN THE TECHNOLOGY AREA FOOD BEVERAGES TOBACCO AND PERSONAL CARE PRODUCTS HAVE BEEN AMONG THE MOST PROFITABLE BUSINESSES IN RECENT YEARS THESE ARE AREAS WHERE JAPANESE COMPANIES ARE PARTICULARLY WEAK AND THE EUROPEANS HAVE BEEN LOSING GROUND NOTE ALSO THAT THE MASS MARKET EUROPEAN PRODUCTS OF VOLKSWAGEN PEUGEOT AND FIAT ARE VIRTUALLY NONEXISTENT IN THE U. S. MARKET WITH A COMBINED ONE PERCENT MARKET SHARE IN CONTRAST G. M. AND FORD ARE STRONG COMPETITORS IN EUROPE WITH A COMBINED TWENTY FOUR PERCENT MARKET SHARE THERE MANY OF THOSE WHO FAVOR THE JAPANESE OR EUROPEAN MODELS ARE REALLY LESS CONCERNED WITH FINDING BETTER AND MORE EFFICIENT METHODS OF MANAGEMENT THAN WITH LOOKING FOR A WAY TO RATIONALIZE THEIR BASIC HOSTILITY TO CAPITALISM THEY IMPLICITLY BELIEVE THAT PROFITS ARE BAD OR AT LEAST UNDESERVED AND THAT THEY SOMEHOW COME AT THE EXPENSE OF WORKERS AND CONSUMERS THEY ALSO VIEW THE NEED FOR PROFITS TO BE AN INSURMOUNTABLE BARRIER TO THE TRANSFORMATION OF CORPORATIONS INTO INSTRUMENTS OF SOCIAL WELFARE THAT WOULD SUBORDINATE PROFITS TO HIGHER GOALS SUCH AS HIGH WAGES AND BENEFITS FOR WORKERS IN THE EUROPEAN STYLE HOWEVER THE MOST DISTURBING PROBLEM WITH THOSE WHO FAVOR ANOTHER MODEL IS THAT THEY DO NOT UNDERSTAND THAT PROFIT IS THE PRINCIPAL SOURCE OF CAPITAL TO FINANCE ECONOMIC GROWTH AND JOB CREATION IN THE PAST TEN YEARS THE U. S. HAS CREATED OVER EIGHTEEN MILLION NET NEW JOBS AND JAPAN HAS CREATED EIGHT MILLION WHILE EUROPE HAS CREATED JUST SIX POINT NINE MILLION DESPITE HAVING A POPULATION LARGER THAN THAT OF THE U. S. AND MORE THAN TWICE THAT OF JAPAN THE COLLAPSE OF JAPAN'S STOCK MARKET AND THE SLOWING OF ITS ECONOMY ARE ALREADY SLOWING JOB CREATION THERE WHILE EUROPE ACTUALLY IS EXPECTED TO HAVE A NET DECLINE IN TOTAL JOBS OVER THE NEXT TWO YEARS ACCORDING TO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT MEANWHILE THE U. S. JOB MACHINE HAS CREATED MORE THAN ONE MILLION NEW JOBS IN JUST THE PAST YEAR WHAT THE RESULTS TELL US IS THAT AMERICAN MANAGERS ARE IN FACT THE BEST IN THE WORLD THEY HAVE INVESTED THEIR CAPITAL AND EXPANDED PRODUCTION NOT ONLY IN THE AREAS THAT HAVE PROVIDED THE BEST RATES OF RETURN BUT ALSO IN PRECISELY THOSE BUSINESSES THAT ARE BEST ABLE TO SATISFY THE CHANGING NEEDS OF THE CONSUMER IN THE PROCESS THEY HAVE LEFT MOST OF THEIR COMPETITORS BEHIND TRUE AMERICAN COMPANIES CONTINUE TO RESTRUCTURE AND MANY LARGE COMPANIES ARE STILL SHEDDING JOBS BUT OTHERS ARE CREATING JOBS BY DEVELOPING NEW PRODUCTS METHODS AND MARKETING TECHNIQUES IT IS ALL PART OF SCHUMPETER'S PROCESS OF CREATIVE DESTRUCTION AS COMPANIES IN MATURE INDUSTRIES WITH DECLINING PROFITS DOWNSIZE AND DYNAMIC NEW COMPANIES WITH HIGH PROFIT POTENTIAL GROW TO REPLACE THEM IN THE END IT IS PROFITABILITY THAT FUELS THIS PROCESS MR. STRICKBERGER IS A PARTNER WITH AN INVESTMENT MANAGEMENT FIRM IN NEW YORK HE IS ALSO AN ADJUNCT FELLOW WITH THE ALEXIS DE TOCQUEVILLE INSTITUTION IN ARLINGTON VIRGINIA EXECUTIVE VICE PRESIDENT LARRY HOLLEN FORTY EIGHT YEARS OLD WAS NAMED TO SUCCEED ROBERT SANBORN AS PRESIDENT AND CHIEF OPERATING OFFICER MR. SANBORN BECOMES VICE CHAIRMAN OF THIS SPECIALTY INSURANCE COMPANY'S BOARD UNDER A PLAN OF SUCCESSION BEGUN IN LATE NINETEEN NINETY TWO WHEN MR. HOLLEN WAS GIVEN ADDITIONAL OPERATING RESPONSIBILITIES J. W. P. INCORPORATED AS EXPECTED SAID IT FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER ELEVEN OF THE FEDERAL BANKRUPTCY CODE AND SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER PLANS TO RESIGN THE BELEAGURED MECHANICAL AND ELECTRICAL CONSTRUCTION CONTRACTING COMPANY SAID THE VOLUNTARY FILING CONVERTS AN INVOLUNTARY PETITION FILED IN DECEMBER BY THREE HOLDERS OF J. W. P.'S SEVEN AND THREE QUARTERS PERCENT CONVERTIBLE SUBORDINATED DEBENTURES J. W. P. SAID THE OPERATIONS OF ITS UNITS WILL BE UNAFFECTED BY THE BANKRUPTCY PROCEEDING WHICH APPLIES TO THE HOLDING COMPANY J. W. P. ALSO SAID IT HAD REACHED AN AGREEMENT FOR THIRTY FIVE MILLION DOLLARS OF DEBTOR IN POSSESSION FINANCING WITH BELMONT CAPITAL PARTNERS TWO L. P. SUBJECT TO COURT APPROVAL AND CERTAIN CONDITIONS BELMONT'S GENERAL PARTNER IS AN AFFILIATE OF FIDELITY INVESTMENTS UNDER J. W. P.'S REORGANIZATION PLAN CREDITORS HOLDING ABOUT SIX HUNDRED MILLION DOLLARS OF CLAIMS AND DEBT WOULD RECEIVE ABOUT ONE HUNDRED TEN MILLION DOLLARS OF RECOURSE DEBT FIFTY MILLION DOLLARS OF NONRECOURSE DEBT AND ONE HUNDRED PERCENT OF THE COMPANY'S EQUITY HOLDERS OF SUBORDINATED DEBT COMMON AND PREFERRED STOCK AND WARRANTS WOULDN'T HAVE ANY STAKE IN THE RESTRUCTURED COMPANY SEPARATELY EDWARD KOSNIK SAID HE WILL RESIGN AS CHAIRMAN AND CHIEF EXECUTIVE OF J. W. P. QUOTE TO PURSUE OTHER PERSONAL AND BUSINESS ACTIVITIES QUOTE IN A STATEMENT MR. KOSNIK SAID THE FILING OF THE PREARRANGED CHAPTER ELEVEN WHICH HAS THE SUPPORT OF J. W. P.'S PRINCIPAL CREDITORS IS AN APPROPRIATE TIME TO BRING ON BOARD A NEW CHIEF EXECUTIVE TO LEAD A REORGANIZED J. W. P. INTO THE FUTURE MR. KOSNIK WILL CONTINUE AS CHIEF EXECUTIVE FOR A TRANSITION PERIOD J. W. P. SAID A SUCCESSOR HAS NOT BEEN NAMED SEPARATELY J. W. P. SAID JEFFREY M. LEVY SENIOR VICE PRESIDENT WAS NAMED ACTING CHIEF OPERATING OFFICER IN THE FIRST COMPLAINTS FILED UNDER THE LABOR SIDE AGREEMENT OF THE NORTH AMERICAN FREE TRADE AGREEMENT TWO UNIONS ACCUSED GENERAL ELECTRIC COMPANY AND HONEYWELL INCORPORATED OF FIRING MEXICAN EMPLOYEES FOR ATTEMPTING TO ORGANIZE WORKERS INTO LABOR UNIONS THE SEPARATE SUBMISSIONS WERE FILED WITH THE U. S. LABOR DEPARTMENT'S NEW NATIONAL ADMINISTRATIVE OFFICE THE UNITED ELECTRICAL WORKERS FILED AGAINST G. E. AND THE TEAMSTERS FILED AGAINST HONEYWELL TOGETHER THE SUBMISSIONS COULD SET PRECEDENTS FOR HANDLING SUCH CASES UNDER THE COMPLICATED MECHANISM SET UP UNDER THE TRADE AGREEMENT TO RESOLVE CROSS BORDER LABOR DISPUTES THE UNIONS WHICH REPRESENT SOME OF THE COMPANIES' U. S. WORKERS TEAMED UP WITH THE AUTHENTIC LABOR FRONT AN INDEPENDENT LABOR FEDERATION IN MEXICO TO FILE AND PUBLICIZE THE CASES THE LABOR ORGANIZATIONS ARE ASKING FOR PUBLIC HEARINGS AND FOR THE FIRED WORKERS TO BE REINSTATED AND ALLOWED TO CHOOSE UNIONS WITHOUT REPRISALS G. E. A FAIRFIELD CONNECTICUT SERVICE AND MANUFACTURING COMPANY AND HONEYWELL A MINNEAPOLIS BASED MAKER OF CONTROLS BOTH DENIED THE ALLEGATIONS AND SAID THEY WOULD COOPERATE WITH ANY INQUIRIES FROM THE NATIONAL ADMINISTRATIVE OFFICE THE FIRST QUESTION FOR THE NATIONAL ADMINISTRATIVE OFFICE IS WHETHER THE OFFICE BORN JANUARY FIRST WHEN THE TRADE AGREEMENT TOOK EFFECT CAN RULE ON CASES THAT BEGAN LAST YEAR EVEN IF THE OFFICE ACCEPTS ONE OR BOTH FOR REVIEW THE CASES ARE LIKELY TO FACE A LONG BUREAUCRATIC ROAD AND AN UNCERTAIN OUTCOME STILL THEY SHOW THAT DESPITE HARSH CRITICISM OF NAFTA AND THE LABOR SIDE AGREEMENT LABOR UNIONS AREN'T HESITANT TO USE THE PROCEDURES THEY CREATE QUOTE WE'RE TESTING THE NAO AND SEEING IF IT WORKS QUOTE SAID BOB NICKLAS SPECIAL PROJECTS COORDINATOR FOR THE TEAMSTERS HE ACKNOWLEDGED THAT IT COULD TAKE SOME TIME HIS OWN COUNT OF THE VARIOUS STEPS IN THE PROCESS SHOWS THAT IT COULD TAKE MORE THAN TWO YEARS FOR THE CASES TO BE CONCLUDED UNDER THE NAFTA SIDE AGREEMENT ON LABOR ORGANIZATIONS ARE SET UP IN EACH PARTICIPATING COUNTRY TO HANDLE COMPLAINTS OVER ENFORCEMENT OF LABOR LAWS IN OTHER COUNTRIES THE NATIONAL ADMINISTRATIVE OFFICE HAS SIXTY DAYS TO DECIDE WHETHER TO ACCEPT THE SUBMISSIONS ULTIMATELY THE CASES COULD GO TO DISPUTE RESOLUTION PANELS THE TEAMSTERS ALLEGE THAT HONEYWELL FIRED ABOUT TWENTY PRODUCTION WORKERS AT ITS CHIHUAHUA PLANT IN NOVEMBER FOR SEEKING TO FORM AN INDEPENDENT AND FREE TRADE UNION AND THAT SINCE THEN THE COMPANY HAS INCREASED ELECTRONIC SURVEILLANCE OF ITS WORKERS A HONEYWELL SPOKESWOMAN SAID TWENTY TWO WORKERS WERE LAID OFF AS PART OF AN OVERALL PLAN TO DOWNSIZE THE FACTORY SHE ADDED THAT ONE EMPLOYEE WAS FIRED FOR PERFORMANCE ISSUES THE UNITED ELECTRICAL WORKERS MEANWHILE ALLEGE THAT GENERAL ELECTRIC FLAGRANTLY VIOLATED THE LABOR AND HUMAN RIGHTS OF ITS EMPLOYEES AT ITS MOTOR PLANT IN JUAREZ IN ADDITION TO ALLEGED FIRINGS FOR UNION ACTIVITIES THE UNION SAYS THAT WORKERS ARE NOW FORCED TO BOARD OR EXIT BUSES ON COMPANY PROPERTY SO THEY CAN'T RECEIVE UNION LITERATURE G. E. SAID IT HASN'T VIOLATED U. S. OR MEXICAN LABOR LAWS AND THAT THE ALLEGATIONS ARE PART OF A UNION ORGANIZING CAMPAIGN IN MEXICO AND THE UE'S CONTINUED ANTI NAFTA EFFORTS A SPOKESMAN SAID SIX OF ELEVEN FIRED WORKERS WERE OFFERED REINSTATEMENT AFTER THE COMPANY'S MANAGEMENT REVIEWED THE CASES BUT THAT THE WORKERS DECLINED HE SAID G. E. FOUND THAT LOCAL MANAGEMENT HAD QUOTE SUFFICIENT EVIDENCE QUOTE THAT FOUR OTHERS VIOLATED COMPANY RULES AND THAT ANOTHER CASE IS UNDER REVIEW ONE BY ONE THE FIRST GRADERS RECITE THE CHARACTERS THE TEACHER HAS DRAWN ON THE BOARD ONLY IT'S NOT THE A. B. C.S THAT THESE SIX AND SEVEN YEAR OLDS ARE RATTLING OFF BUT THE HIRAGANA CHARACTERS OF THE JAPANESE LANGUAGE THE STUDENTS IN THIS INNER CITY PUBLIC SCHOOL CLASSROOM HAVE NO JAPANESE HERITAGE IN FACT ALMOST ALL OF THEM ARE AFRICAN AMERICAN BUT ALL DAY LONG THEY HEAR ONLY JAPANESE FROM THEIR TEACHERS THEY RECITE THEIR MATH PROBLEMS IN JAPANESE THEIR LANGUAGE READERS OPEN FROM LEFT TO RIGHT AS IN JAPAN WHEN THE TEACHER ASKS IN JAPANESE QUOTE DO YOU UNDERSTAND QUOTE THE CHILDREN CHIRP QUOTE HAI QUOTE THIS IS DETROIT'S FOREIGN LANGUAGE IMMERSION AND CULTURAL STUDIES SCHOOL ONE OF ABOUT ONE HUNDRED FIFTY PUBLIC ELEMENTARY SCHOOLS NATIONWIDE WHOSE CURRICULA ARE TAUGHT IN A FOREIGN TONGUE THE SO CALLED IMMERSION PROGRAMS WHICH BEGIN IN KINDERGARTEN OR FIRST GRADE ARE OFFERED PRIMARILY IN FRENCH OR SPANISH THOUGH CANTONESE IS TAUGHT IN SAN FRANCISCO GERMAN IN MILWAUKEE AND HAWAIIAN IN HONOLULU THE PROGRAMS SHARPLY DEPART FROM TRADITIONAL LANGUAGE INSTRUCTION RATHER THAN DEVOTING JUST A SMALL PORTION OF THE SCHOOL DAY TO LANGUAGE INSTRUCTION SOME OR ALL SUBJECTS ARE TAUGHT IN THE SECOND TONGUE THE U. S. LONG A FOREIGN LANGUAGE LAGGARD CAN NO LONGER AFFORD TO BE SO TEACHING CHILDREN TO SPEAK OTHER LANGUAGES NOT ONLY ENHANCES COGNITIVE SKILLS AND CULTURAL APPRECIATION IT IS ALSO BECOMING AN ECONOMIC NECESSITY AS TRADE BARRIERS CRUMBLE AND BUSINESSES TURN TO FOREIGN MARKETS FOR EXPANSION YOU CAN BUY IN ANY LANGUAGE BUT TO SELL YOU NEED TO KNOW THE LANGUAGE OF YOUR CUSTOMER SAYS PAUL SIMON THE DEMOCRATIC SENATOR FROM ILLINOIS AND AUTHOR OF THE TONGUE TIED AMERICAN IMMERSION PROGRAMS AREN'T EASY TO OPERATE FINDING TEACHERS WHO ARE BILINGUAL IS A PROBLEM SO IS ATTRITION AS CHILDREN LEAVE THE PROGRAMS BECAUSE THEIR FAMILIES MOVE OR FOR OTHER REASONS THE ATTRITION RATE IN THE DETROIT IMMERSION SCHOOL WHICH ALSO OFFERS FRENCH AND SPANISH PROGRAMS IS ABOUT TEN PERCENT A YEAR THAT PARENTS OF ONE HUNDRED TWENTY SIX STUDENTS IN DETROIT HAVE CHOSEN TO ENROLL THEIR CHILDREN IN JAPANESE IS TESTAMENT TO THEIR FAITH THAT PROFICIENCY IN THE LANGUAGE WILL ENHANCE THEIR CHILDREN'S FUTURE JOB PROSPECTS I CHOSE THE IMMERSION PROGRAM FOR ECONOMIC REASONS I SEE THAT THE JAPANESE COMPANIES ARE BECOMING PART OF AMERICA SAYS MARGARET CLAY MOTHER OF FOURTH GRADER AARANISA WHO'S BEEN SPEAKING JAPANESE SINCE KINDERGARTEN FIFTH GRADER CLEOGHER DIXON WHOSE FATHER WORKS FOR CHRYSLER IS MORE BLUNT MY DAD TOLD ME THAT ONE DAY THE JAPANESE ARE GOING TO TAKE OVER EVERYTHING MOST LINGUISTS AGREE THAT FOREIGN LANGUAGES ARE EASIEST TO MASTER AT A YOUNG AGE WHEN CHILDREN HAVE NO FEAR OF THEIR DIFFICULTY AREN'T EMBARRASSED ABOUT PRONUNCIATION AND ACTUALLY CONSIDER THEM FUN WE LIKE SPEAKING JAPANESE AT HOME MY BROTHER HELPS ME SAYS GEOFFREY STEPHENS SEVEN YEARS OLD WHOSE THIRD GRADE BROTHER AND KINDERGARTEN SISTER ARE ALSO STUDYING JAPANESE IN DETROIT MOREOVER THE PROCESS OF LEARNING HOW TO LEARN A SECOND LANGUAGE BE IT SPANISH OR URDU CAN INSTILL IN YOUNG CHILDREN SPECIAL LEARNING SKILLS AS WELL AS SENSITIVITY TO OTHER CULTURES TEACHING A LANGUAGE IS TEACHING A CHILD TO PUT ON A PERSPECTIVE THE LENSES OF ANOTHER CULTURE SAYS PAUL GARCIA LANGUAGE DIRECTOR IN KANSAS CITY MISSOURI WHICH OFFERS FRENCH GERMAN AND SPANISH IMMERSION PROGRAMS INDEED AMERICA LAGS FAR BEHIND NOT ONLY ITS INDUSTRIALIZED COUNTERPARTS BUT ALSO THE LESS DEVELOPED WORLD IN THE ABILITY OF ITS STUDENTS TO SPEAK OTHER LANGUAGES INDIA AND FRANCE FOR EXAMPLE REQUIRE STUDENTS TO STUDY TWO FOREIGN LANGUAGES IN HIGH SCHOOL IN JAPAN STUDENTS BEGIN STUDYING ENGLISH IN SEVENTH GRADE BUT ONLY ABOUT ONE THIRD OF ALL AMERICAN SECONDARY SCHOOL STUDENTS TAKE A LANGUAGE WHILE A MERE TWO PERCENT TO THREE PERCENT OF CHILDREN STUDY AT THE PRIMARY SCHOOL LEVEL ENROLLMENT IN IMMERSION PROGRAMS IS GENERALLY VOLUNTARY AND NO APTITUDE TESTS ARE GIVEN PRIOR TO ADMISSION AND DESPITE THE INTENSITY OF THE LANGUAGE INSTRUCTION LINGUISTS AND TEACHERS BELIEVE SUCH PROGRAMS AREN'T ANY MORE STRESSFUL THAN TRADITIONAL SCHOOL FOR THE CHILDREN THE IMMERSION PROGRAM STUDENTS QUOTE ARE ALL IN THE SAME BOAT QUOTE SAYS NANCY RHODES ASSOCIATE DIRECTOR AT THE CENTER FOR APPLIED LINGUISTICS IN WASHINGTON D. C. THEY CAN ALWAYS COMMUNICATE WITH EACH OTHER IN THE BEGINNING THEY WON'T UNDERSTAND THE TEACHER BUT THE TEACHER WILL UNDERSTAND EVERYTHING THEY SAY STILL SOME PARENTS OFTEN HESITATE TO ENROLL THEIR CHILDREN IN SUCH PROGRAMS DO YOU KNOW WHAT IT'S LIKE TO TRY TO HELP YOUR KIDS WITH THEIR HOMEWORK WHEN YOU CAN'T READ DIRECTIONS OR EVEN LOOK A WORD UP ASKS SARI KAYE A LANGUAGE CURRICULUM DIRECTOR IN THE FAIRFAX COUNTY VIRGINIA SCHOOL DISTRICT WHICH OFFERS A JAPANESE PARTIAL IMMERSION PROGRAM PARENTS ALSO WORRY THAT THEIR CHILDREN'S ENGLISH SKILLS WILL BE NEGLECTED HOWEVER STANDARDIZED TESTS SHOW THAT CHILDREN TAUGHT IN ANOTHER LANGUAGE ACTUALLY DO AS WELL OR BETTER IN ENGLISH GRAMMAR READING COMPREHENSION AND VOCABULARY IMMERSION PROGRAMS FIRST SPROUTED IN QUEBEC IN THE MID NINETEEN SIXTIES WHEN A GROUP OF ENGLISH SPEAKING PARENTS REALIZED THEIR CHILDREN WERE FAR FROM BILINGUAL EVEN AFTER TAKING FRENCH ONE PERIOD A DAY OVER SEVERAL YEARS THEY INSTITUTED A PLAN IN WHICH KINDERGARTEN AND FIRST GRADE COURSES WOULD BE TAUGHT IN FRENCH WITH ENGLISH GRADUALLY INTRODUCED IN EACH OF THE NEXT SEVERAL GRADES BY FOURTH GRADE THE INSTRUCTION WOULD BE ABOUT FIFTY PERCENT ENGLISH THOSE STUDENTS DEVELOPED CONFIDENCE AND PROFICIENCY FAR GREATER THAN THEIR PEERS SAYS RICHARD TUCKER THEN A PROFESSOR AT MCGILL UNIVERSITY WHICH MONITORED THE STUDENTS' PROGRESS OVER SEVERAL YEARS CULVER CITY CALIFORNIA WAS THE FIRST U. S. SCHOOL DISTRICT TO ADOPT THE MODEL IN NINETEEN SEVENTY ONE FOR TEACHING SPANISH IN LANGUAGES WITH THE SAME ALPHABET AS ENGLISH SUCH AS FRENCH AND SPANISH CHILDREN ARE FAIRLY CONVERSANT BY FOURTH OR FIFTH GRADE IN JAPANESE IT TAKES MORE TIME IN DETROIT KAORI OHGATA A JAPANESE NATIVE SAYS OF HER CHARGES THEIR HEARING IS PRETTY GOOD BY FOURTH AND FIFTH GRADES AS FOR THEIR WRITING WE ARE STILL WORKING ON IT GRIPES FIFTH GRADER SIKA FOX QUOTE IT'S HARD PLAIN HARD QUOTE STILL THE STUDENTS WOULD BE ABLE TO HOLD A SIMPLE CONVERSATION WITH THEIR PEERS IN JAPAN SAYS MS. OHGATA EVEN WHEN FLUENT HOWEVER THE ELEMENTARY STUDENTS STILL WILL NOT SOUND LIKE NATIVES AS THEY MIGHT IF IMMERSED IN ANOTHER COUNTRY IN SOME CASES THEY DEVELOP A CLASSROOM DIALECT ALL MAKING THE SAME MISTAKES TEACHERS HAVE A HARD TIME GETTING THE STUDENTS TO USE THE FIRST PERSON SINCE THE TEACHER IS ALWAYS REFERRING TO STUDENTS AS YOU AT THE DETROIT IMMERSION SCHOOL INEALA CHAMBERS THE PRINCIPAL SPENDS MUCH OF HER TIME TRYING TO RECRUIT TEACHERS AND GET VISAS FOR MANY WHO ARE FOREIGN BORN THE TEACHERS AT THE SCHOOL WHICH ENROLLS ANOTHER FOUR HUNDRED CHILDREN IN FRENCH AND SPANISH IMMERSION PROGRAMS COULD FORM A MINI UNITED NATIONS HAILING FROM JAPAN CHINA BENIN LEBANON VENEZUELA MEXICO BELGIUM AND ARGENTINA OF THE JAPANESE TEACHERS TWO ARE JAPANESE NATIONALS ONE THE WIFE OF AN EXECUTIVE TRANSFERRED TO DETROIT ONE IS CHINESE AND SPENT SEVERAL YEARS IN JAPAN AND ONE IS AN AFRICAN AMERICAN WHO STUDIED IN JAPAN IN COLLEGE AND STAYED ON FOR A FEW YEARS PARENTS OF THOSE IN THE DETROIT PROGRAM HAVE FORMED A JAPANESE CLUB THAT TAKES THE CHILDREN ON EXCURSIONS TO ENHANCE THEIR AWARENESS OF THE CULTURE THEY HAVE TRAVELED TO A JAPANESE GARDEN A SATURDAY SCHOOL FOR CHILDREN OF JAPANESE EXECUTIVES STATIONED IN THE DETROIT AREA AND A JAPANESE RESTAURANT NOW THEY ARE WORKING ON REAL IMMERSION A TRIP TO JAPAN IN NINETEEN NINETY SIX IN HER JANUARY EIGHTEENTH LETTER RESPONDING TO MY DECEMBER TWENTY THIRD EDITORIAL PAGE ARTICLE QUOTE PRESIDENT'S COSTLY BUDGET BUSTER QUOTE NANCY ANN MIN OF THE OFFICE OF MANAGEMENT AND BUDGET DID NOT RESPOND TO THE CENTRAL THEME THAT BOTH THEORY AND HISTORY STRONGLY SUGGEST THAT ADOPTION OF A MASSIVE NEW ENTITLEMENT PROGRAM WILL LEAD TO A MASSIVE EXPANSION OF BUDGET DEFICITS MS. MIN DODGES THIS CRITICAL ISSUE BY FOCUSING HER RESPONSE ON SIDE ISSUES BUT EVEN THESE COMMENTS REFLECT A LEVEL OF INACCURACY THAT HAS COME TO CHARACTERIZE THE CLINTON ADMINISTRATION SHE ATTEMPTS TO DEFEND THE ADMINISTRATION'S BUDGET NUMBERS BY ASSERTING THAT A STUDY BY LEWIN VHI CAME TO THE SAME CONCLUSION YET THE LEWIN VHI STUDY WAS NOT DESIGNED TO ASCERTAIN THE RELIABILITY OF THOSE FIGURES INSTEAD THE REPORT MEASURED THE FINANCIAL IMPACT OF THE CLINTON PROPOSAL USING THE HEROIC ASSUMPTION THAT THE PLAN'S PRICE CONTROLS AND EXPENDITURE LIMITS WOULD OPERATE EXACTLY AS THE ADMINISTRATION PREDICTS AS I STATED IN MY ARTICLE HOWEVER THESE ASSUMPTIONS ARE GROSSLY OPTIMISTIC MS. MIN'S CLAIMS ARE SOMEWHAT LIKE DEBATING THE ABILITIES OF FLYING ELEPHANTS WITHOUT EVER CONFIRMING THE EXISTENCE OF SUCH CREATURES MS. MIN ALSO BERATES ME FOR NOT MENTIONING THE O. M. B. SCENARIOS THAT INDICATE THE HEALTH PLAN COULD PRODUCE EVEN MORE SAVINGS THAN ADVERTISED SHE SHOULD HAVE READ MORE CAREFULLY I SPECIFICALLY NOTED THAT THE NUMBERS I USED WERE PART OF AN EXERCISE TO LOOK AT BEST CASE AND WORST CASE NUMBERS MY ANALYSIS WHICH SHE NEGLECTED TO COUNTER IS THAT SO CALLED WORST CASE NUMBERS ARE THE REALISTIC ONES TO USE WHEN PREDICTING THE COST OF NEW ENTITLEMENT PROGRAMS HERE'S HOW ANDRZEJ KRZEMINSKI HEAD OF INTERNATIONAL BANKING AT POLAND'S BANK INICJATYW GOSPODARCZYCH OR BIG BANK IS WINNING THE HEARTS AND MINDS OF MERCHANTS FOR VISA INTERNATIONAL THE CREDIT CARD CONSORTIUM FIRST HE FINDS A SHOP THAT DOESN'T SPORT THE VISA LOGO IN ITS WINDOW THEN HE POSES AS A CUSTOMER PLACING ORDERS FOR A LARGE AMOUNT OF MERCHANDISE AS THE HAPPY SHOPKEEPER TOTES UP THE BILL MR. KRZEMINSKI PULLS OUT A VISA CARD ONLY TO BE TOLD IT ISN'T ACCEPTED HE STALKS ANGRILY OUT LEAVING THE DISAPPOINTED MERCHANT TO RESHELVE THE GOODS THEN HE SENDS IN OTHER BIG BANK COLLEAGUES TO PULL THE SAME RUSE OVER THE NEXT FEW DAYS IT'S A TOUGH STORE OWNER WHO CAN HOLD OUT LONG BEFORE SIGNING UP WITH VISA QUOTE IT'S QUITE EFFICIENT QUOTE OBSERVES MR. KRZEMINSKI THE SHOP MANAGERS GO A LITTLE CRAZY PEOPLE LIKE MR. KRZEMINSKI AND HIS ASSOCIATES AT BIG BANK HAVE GIVEN VISA A POWERFUL LEAD IN THE RAPIDLY GROWING POLISH CREDIT CARD MARKET POLAND IS VISA DOMINATED NOTES CIARA LINNANE EDITOR OF EAST EUROPEAN BANKER A NEWSLETTER WITH AMERICAN CONSUMERS LONG AWASH IN A SEA OF PLASTIC VISA AND ITS ARCHRIVALS MASTERCARD INTERNATIONAL AND AMERICAN EXPRESS COMPANY HAVE CARRIED TO FOREIGN SHORES THEIR FIERCE FIGHT TO SIGN UP AS MANY BANKS SHOPS AND CONSUMERS AS POSSIBLE MASTERCARD AND VISA THE TWO BIGGEST GLOBAL CARD BRANDS ARE CONSORTIUMS FOR THE WORLD'S FINANCIAL INSTITUTIONS AND DO MUCH OF THE LEGWORK TO SET UP AN INFRASTRUCTURE AND PERSUADE MERCHANTS TO ACCEPT THEIR CARDS MEMBER BANKS SUCH AS CITIBANK OR HONGKONG AND SHANGHAI BANK THEN ISSUE TO CONSUMERS THE CARDS THAT ALLOW THEM TO BUY ON CREDIT AMERICAN EXPRESS WHILE ISSUING CHARGE CARDS THAT MUST BE PAID OFF MONTHLY IS TRYING TO BUILD UP ITS OPTIMA CREDIT CARD MUCH IS AT STAKE LAST YEAR MORE THAN ONE TRILLION DOLLARS WAS SPENT VIA PLASTIC CARDS AND ESTIMATES CALL FOR THE GLOBAL CARD MARKET TO HIT AT LEAST TWO TRILLION DOLLARS BY THE YEAR TWO THOUSAND OUTSIDE THE U. S. THE POTENTIAL FOR GROWTH IS STILL QUITE PHENOMENAL SAYS DAVID ROBERTSON PRESIDENT OF THE NILSON REPORT AN OXNARD CALIFORNIA NEWSLETTER THAT TRACKS THE CARD MARKET IT MIGHT SEEM THAT SPREADING THE PLASTIC GOSPEL WOULD BE EASY AFTER ALL MOST CONSUMERS LIKE THE CONVENIENCE OFFERED BY CHARGE AND CREDIT CARDS OR THEIR CLOSE BUT LESS PROFITABLE COUSINS DEBIT CARDS DEBIT CARDS FUNCTION LIKE A BANK CHECK IN THAT THEY DEDUCT THE COST OF A PURCHASE DIRECTLY FROM THE OWNER'S BANK ACCOUNT CERTAINLY MOST BANKS ARE EAGER TO GET INTO THE LUCRATIVE CREDIT CARD MARKET PERHAPS THE MOST PROFITABLE CONSUMER BANKING PRODUCT BECAUSE OF THE FAT INTEREST RATES CHARGED EVEN MERCHANTS LESS ENTHUSIASTIC BECAUSE OF THE FEES THEY MUST PAY CARD FIRMS FOR EACH TRANSACTION USUALLY BOW TO CONSUMER PRESSURE BUT IN THEIR EFFORTS TO GO GLOBAL THE BIG CARD CONCERNS FACE A BEWILDERING ARRAY OF PROBLEMS MARKETERS MUST FIGURE OUT WHAT MAKES THE CONSUMER IN A GIVEN COUNTRY TICK LAWYERS PORE OVER REGULATIONS TO DIVINE WHAT VARIOUS GOVERNMENTS WILL AND WON'T ALLOW TECHNICIANS SEEK WAYS TO SHUTTLE VAST AMOUNTS OF DATA OVER SOMETIMES PRIMITIVE ELECTRONICS AND TELECOMMUNICATIONS NETWORKS WHILE ENGINEERING EQUIPMENT THAT CAN DETECT OR PREVENT FRAUD OR OTHER MISUSE ALL THE WHILE THE FOOT SOLDIERS LIKE MR. KRZEMINSKI FERRET OUT NEW OPPORTUNITIES TO SIGN UP SHOPKEEPERS FOR THE MOMENT VISA HOLDS THE LEAD IN THE GLOBAL CARD WARS WITH THREE HUNDRED TWENTY THREE POINT THREE MILLION CARDS WORLD WIDE AND MORE THAN A FIFTY PERCENT SHARE OF CARD VOLUME MASTERCARD WITH TWO HUNDRED FOUR MILLION CARDS OUTSTANDING IS SECOND BUT PICKING UP STEAM AMERICAN EXPRESS HAS TARGETED A MORE LIMITED BUT AFFLUENT MARKET OF FREQUENT BUSINESS TRAVELERS AND WEALTHY INDIVIDUALS BUT IT ALSO IS MAKING A BIG PUSH FOR CORPORATE CLIENTS AT HOME AND ABROAD THE REAL GROWTH IN PLASTIC CARDS WILL COME INCREASINGLY FROM NEWLY INDUSTRIALIZED NATIONS LIKE TAIWAN THERE CARD USAGE BY CONSUMERS SKYROCKETED ONCE CREDIT AND FOREIGN EXCHANGE CONTROLS WERE LIFTED IN NINETEEN NINETY IN THE ENSUING EIGHTEEN MONTHS THE NUMBER OF CARDS OUTSTANDING SOARED TO ONE POINT THREE MILLION FROM JUST FIFTY THOUSAND ADJUSTING TO DIVERSE CULTURAL VALUES IS AT THE HEART OF EVERY CARD ISSUER'S STRATEGY THAT'S WHY LOCAL BANKS OFTEN PLAY A CRITICAL ROLE IN ESTABLISHING CARDS FOR EITHER VISA OR MASTERCARD IN A PARTICULAR COUNTRY JUST AS IN THE U. S. BUT WHILE LOCAL BANKS MAY BE WARY OF OPENING THEIR MARKETS TO CARDS THEY FACE PRESSURE FROM THE BIG INTERNATIONAL BANKS THAT ARE TRYING TO PRY OPEN PLACES LIKE FRANCE AND GERMANY BIG U. S. BANKS LONG HAVE CARRIED THE CREDIT CARD BANNERS ABROAD FOR VISA AND MASTERCARD AND CITICORP IS THE DOMINANT GLOBAL CONSUMER BANK ITS FRANCHISE SPANS THIRTY NINE COUNTRIES WITH NEARLY EIGHT HUNDRED BRANCHES OUTSIDE NORTH AMERICA CITICORP'S CREDIT CARD OPERATIONS OVERSEAS NOW HAVE SEVEN MILLION ACCOUNTS COMPARED WITH NINETEEN MILLION IN THE U. S. OVERSEAS CARDS EARNED APPROXIMATELY ONE HUNDRED MILLION DOLLARS AFTER TAXES LAST YEAR AND PROFITS ARE EXPECTED TO GROW AT A TWENTY PERCENT CLIP SAYS PEI YUAN CHIA CITICORP VICE CHAIRMAN AND GLOBAL CONSUMER BANKING CHIEF THERE ARE A LOT OF OPPORTUNITIES OUTSIDE THE U. S. SAYS MR. CHIA NOT THAT THEY WILL BE EASY TO SEIZE AMERICANS LONG HAVE BEEN ENTHUSIASTIC ABOUT CHARGING THINGS WILLING TO PAY PUNISHING INTEREST RATES FOR THE PRIVILEGE OF POSTPONING PAYMENT BUT TO MANY EUROPEAN CONSUMERS WHAT AMOUNTS TO TAKING OUT A LOAN EVEN A SMALL ONE TO PAY FOR ANYTHING IS ANATHEMA GERMANS ESPECIALLY ARE RELUCTANT TO BUY ON CREDIT EUROPEAN CONSUMERS PREFER DEBIT CARDS PEOPLE IN SOME INDUSTRIALIZED COUNTRIES HAVE LITTLE USE FOR ANY KIND OF PLASTIC CARD ITALY FOR EXAMPLE HAS A SOPHISTICATED CREDIT AND BANKING SYSTEM WELL SUITED TO HANDLING CREDIT AND DEBIT CARDS BUT ITALIANS PREFER TO CARRY CASH OFTEN HUGE WADS OF IT IT IS COMMON TO SEE AN ITALIAN HANDING OVER MILLIONS OF LIRE TO PAY A LARGE UTILITY BILL IN PERSON IT'S AS IF WE'D BUILT A PERFECTLY MODERN HIGHWAY SYSTEM BUT PEOPLE CONTINUED USING COUNTRY ROADS INSTEAD SAYS A FRUSTRATED SPOKESWOMAN FOR THE ITALIAN BANKING ASSOCIATION JAPANESE CONSUMERS ARE ESPECIALLY VEXING TO THE CARD CONCERNS MOST JAPANESE HAVE A CREDIT CARD THERE ARE TWO HUNDRED MILLION OUTSTANDING IN THE NATION OF ONE HUNDRED TWENTY MILLION PEOPLE BUT CARD PURCHASES AMOUNT TO LESS THAN ONE PERCENT OF ALL CONSUMER TRANSACTIONS QUOTE THEY HAVE THEM THEY PAY THE MEMBERSHIP FEES BUT THEY NEVER USE THEM QUOTE SAYS GUNILLA BROADBENT PRESIDENT OF BAI INTERNATIONAL A NEW YORK CONSULTING FIRM JAPANESE LONG HAVE LOOKED DOWN ON CREDIT PURCHASES BUT ACQUIRE CARDS TO USE WHILE TRAVELING ABROAD THE U. S. IN PARTICULAR THEY FEAR IS TOO CRIME RIDDEN FOR TRAVELERS TO CARRY CASH SAFELY THERE JAPAN HAS THE POTENTIAL TO BE A HIGH GROWTH MARKET FOR ANY ISSUER SAYS HITOSHI KONDO VISA'S ASSISTANT GENERAL MANAGER IN JAPAN THE CHALLENGE IS TO FIND WAYS TO PERSUADE THE JAPANESE TO USE THEIR PLASTIC AT HOME NOT SO IN TAIWAN WHERE AFTER FOUR YEARS VISA IS SO WIDELY ACCEPTED THAT ONE OF THE COUNTRY'S TOP VOCALISTS CHOU AN AN HIT THE TOP OF THE CHARTS WITH A SONG CALLED DO YOU LOVE ME MORE OR YOUR VISA CARD MORE VISA DISCOVERED THAT ALLYING WITH THE RIGHT PEOPLE AND RIGHT BANKS MADE ALL THE DIFFERENCE CARL PASCARELLA VISA'S NEW CHIEF EXECUTIVE SAYS ONCE THE CONSORTIUM DECIDED TO TARGET THE COUNTRY AN EARLY STOP WAS WITH JEFFREY KOO A POWERFUL TAIWANESE BUSINESSMAN MR. KOO IS A MEMBER OF TAIWAN'S MOST POLITICALLY CONNECTED FAMILY AND OFTEN SERVES HIS COUNTRY AS AN UNOFFICIAL HIGH LEVEL ENVOY HE NOT ONLY RUNS CHINATRUST BANK ONE OF TAIWAN'S LARGEST BANKS AND THE CORNERSTONE OF A FINANCIAL SERVICES EMPIRE HE ALSO IS CHAIRMAN OF THE COUNTRY'S NATIONAL CREDIT CARD CENTER FORMERLY THE ONLY BODY ALLOWED TO MARKET CREDIT CARDS DIRECTLY TO MERCHANTS IN TAIWAN THE NCCC ALSO RAN THE COUNTRY'S SOLE CREDIT CARD PROCESSING CENTER VISA PERSUADED MR. KOO TO JOIN ITS ASIAN BOARD VISA PUT TOGETHER A TIGER TEAM OF EXECUTIVES FROM THE ASIA SLASH PACIFIC REGION TO TRAIN EMPLOYEES OF NCCC IN THE WORKINGS OF AN INTERNATIONAL CARD VISA SET UP AN OFFICE IN TAIWAN AND STAFFED IT WITH A FORMER EXECUTIVE OF INTERNATIONAL BUSINESS MACHINES CORPORATION WHO IS TAIWANESE THEN VISA STARTED A PRINT AND BILLBOARD ADVERTISING CAMPAIGN TO INCREASE CONSUMER AWARENESS BUILDING ON AN ALREADY AGGRESSIVE VISA TRAVELER'S CHECK OPERATION IN TAIWAN ALL THE WHILE VISA AND ISSUERS SUCH AS CITIBANK WERE PRESSING REGULATORS TO OPEN THE MARKET TO THEIR CREDIT CARD WHEN THAT TIME CAME VISA WAS READY TO MOVE QUICKLY AND IT SINCE HAS BECOME THE DOMINANT CARD WITH NINE HUNDRED FIFTY THOUSAND ACTIVE CARDS IN TAIWAN MASTERCARD WHICH ENTERED THE MARKET ABOUT TWO YEARS AGO HAS ONE HUNDRED NINETY FIVE THOUSAND ACTIVE CARD HOLDERS OBSERVERS OF THE MARKET ESTIMATE TAIWAN'S POPULATION OF TWENTY ONE MILLION COULD SUPPORT AS MANY AS TEN MILLION CARDS BUT IN THEIR QUEST TO SIGN UP NEW CARD HOLDERS THE INTERNATIONAL CARD COMPANIES SOMETIMES FACE LOCAL COMPETITION THAT'S TRUE IN FRANCE WHERE ALL FRENCH RETAIL BANKS AGREED A DECADE AGO TO FORM THEIR OWN PAYMENT CARD SYSTEM VISA AND MASTERCARD ARE HONORED IN FRANCE BUT THE CARTES BLEUES DEBIT CARDS OR BLUE CARDS HAVE BECOME THE PREDOMINANT METHOD OF PAYMENT FOR EVEN SMALL TRANSACTIONS IT'S COMMON IN RESTAURANTS TO SEE WAITERS CARRYING HAND HELD ELECTRONIC TERMINALS ACROSS THE DINING ROOM TO ALLOW A CUSTOMER TO TAP IN HIS PERSONAL CODE AFTER A MEAL THE CARDS ARE COSTLY FOR BANKS SINCE THEY ARE NOT EARNING JUICY INTEREST RATES AND CUMBERSOME FOR MERCHANTS COLETTE SILJEGOVIC OWNER OF THE CAFE DE FLORE A FAMOUS RETREAT FOR INTELLECTUALS AND TOURISTS ON PARIS'S LEFT BANK REFUSES CARTES BLEUES SHE SAYS EACH TRANSACTION TAKES TOO LONG HOLDING UP THE BUSTLE OF HER CAFE WHICH SERVES SOME FIVE THOUSAND CUPS OF COFFEE A DAY LOOKING TO THE FUTURE THE VAST MARKET IN CHINA BECKONS SPENDING PER CARD IS HIGHER IN CHINA THAN IN ALMOST EVERY OTHER COUNTRY BUT THAT IS ONLY BECAUSE THE RELATIVELY FEW CARDS ISSUED THERE FEWER THAN THREE MILLION AT LAST COUNT ARE ALMOST ENTIRELY FOR BUSINESS USE BUSINESSES FIND CARDS PARTICULARLY APPEALING SINCE CHINA DOESN'T HAVE AN EFFICIENT MEANS OF TRANSFERRING MONEY OR PAYING BILLS FEW CONSUMERS HAVE CARDS AND THE MAJOR CARD ISSUERS ARE MOVING CAUTIOUSLY IN CHINA AT LEAST IN PART BECAUSE OF AMBIGUOUS LAWS GOVERNING PAYMENT COLLECTION THERE'S A GREAT MASS OF PEOPLE BUT CARDS HAVEN'T BEEN MASS ISSUED CONCEDES VISA'S MR. PASCARELLA NOT EVERY COUNTRY THAT WANTS A CREDIT CARD ECONOMY GETS IT AMID THE DISINTEGRATION OF THE SOVIET UNION VIKTOR RAJEVSKI THE DEPUTY CHAIRMAN OF THE COUNCIL OF MINISTERS OF SOVIET ESTONIA FLEW TO SAN FRANCISCO TO MEET WITH EXECUTIVES OF VISA INTERNATIONAL IN CONSTRUCTING A FINANCIAL SYSTEM MR. RAJEVSKI WANTED TO KNOW IF HIS BUDDING COUNTRY COULD SKIP CASH AND PROCEED RIGHT TO CHARGE CARDS HE SAID LOOK OUR ECONOMY IS BASICALLY BARTER AND OX CART RECALLS CHARLES RUSSELL FORMER CHIEF OF VISA QUOTE WHAT HE REALLY WANTED TO DO WAS AVOID THE EVOLUTION OF LARGE CURRENCIES AND CHECKS AND GO RIGHT TO AN ELECTRONIC SYSTEM WHAT HE WANTED TO DO WAS VERY INTELLIGENT ALAS ESTONIA'S OX CART ECONOMY COULDN'T AFFORD THE MASSIVE SPENDING NECESSARY TO ERECT THE COMMUNICATIONS NETWORK TO SUPPORT A FINANCIAL SYSTEM BASED ENTIRELY ON CREDIT STILL THERE IS PROGRESS JUST A FEW MONTHS AGO VISA INSTALLED THE FIRST AUTOMATIC TELLER MACHINE IN TALLINN THE ESTONIAN CAPITAL THAT WAS SOMETHING OF AN EVENT HERE SAYS A SMILING SPOKESWOMAN FOR ESTONIA'S CENTRAL BANK CHARLES FLEMING IN PARIS AND JATHON SAPSFORD IN TOKYO CONTRIBUTED TO THIS ARTICLE I AM VERY CONCERNED THAT THE ARTICLE BY THE HERITAGE FOUNDATION'S DANIEL J. MITCHELL DISTORTS THE POSITION OF OFFICE OF MANAGEMENT AND BUDGET ANALYSTS WITH REGARD TO THE PRESIDENT'S HEALTH REFORM PLAN QUOTE PRESIDENT'S COSTLY BUDGET BUSTER QUOTE EDITORIAL PAGE DECEMBER TWENTY THIRD O. M. B. ANALYSTS HELPED DEVELOP THE PLAN'S FINANCING AND HAVE CONFIRMED ITS SOUNDNESS MOREOVER THE MOST AUTHORITATIVE OUTSIDE STUDY OF THE HEALTH SECURITY ACT CONDUCTED BY LEWIN VHI AN INDEPENDENT CONSULTING GROUP WITH SPECIFIC EXPERTISE ON HEALTH CARE ISSUES HAS VERIFIED THAT THE PLAN'S FINANCING WORKS AND WILL REDUCE THE DEFICIT OVER THE PERIOD FROM NINETEEN NINETY FIVE TO TWO THOUSAND THE SECRET TABLES ON WHICH MR. MITCHELL BASES HIS ARTICLE WERE NOTHING MORE THAN SPECULATIVE COMPUTER SPREADSHEETS PREPARED BY AN ANALYST AT AN EARLY STAGE IN THE DRAFTING OF THE HEALTH SECURITY ACT PURELY THEORETICAL THEY APPLIED WHAT IF SCENARIOS TO SOME OF THE ELEMENTS OF EARLY VERSIONS OF THE HEALTH REFORM PLAN UNDER DISCUSSION LAST SUMMER ESSENTIALLY THE TABLES ANSWERED A SERIES OF HYPOTHETICAL QUESTIONS WHAT IF WE CHOOSE THIS OR THAT POLICY WHAT IF OUR ESTIMATES ARE TOO HIGH OR TOO LOW UNCERTAINTIES IDENTIFIED BY THIS EXERCISE WERE THEN THOROUGHLY ADDRESSED IN THE FINAL DRAFTING OF THE LEGISLATION THEREFORE THE TABLES DO NOT APPLY TO THE LEGISLATION NOW BEFORE THE CONGRESS AND ARE NOT RELEVANT TO ANY DISCUSSION OF THAT PLAN INTERESTINGLY MR. MITCHELL DOES NOT MENTION THE FACT THAT THE WHAT IF SCENARIOS IN THE TABLE INCLUDED ASSUMPTIONS THAT RESULTED IN LOWER COSTS AND MUCH GREATER DEFICIT REDUCTION THOSE SCENARIOS WERE CLEARLY DELINEATED IN THE TABLES BUT MR. MITCHELL CHOSE TO IGNORE THEM APPARENTLY THEY DID NOT FIT INTO HIS AGENDA THE HEALTH SECURITY ACT CONTAINS A NUMBER OF SPECIFIC MEASURES TO ADDRESS COST UNCERTAINTIES FOR EXAMPLE A FIFTEEN PERCENT CUSHION WAS ADDED TO THE ESTIMATES OF THE DISCOUNTS TO BE PROVIDED TO SMALL LOW WAGE FIRMS AND LOW INCOME WORKERS BEYOND THAT WHATEVER FISCAL RISK REMAINS IS CONTAINED BY SPECIFIC LANGUAGE IN THE ACT CAPPING FEDERAL EXPENDITURES IN THE UNLIKELY EVENT THAT THOSE CAPS ARE BREACHED A FUTURE ACT OF CONGRESS WOULD BE NECESSARY TO SPEND MORE MONEY MR. MITCHELL DISMISSES THIS IMPLYING THAT CONGRESS MIGHT NOT ENACT THE DISCIPLINES PROPOSED BY THE PRESIDENT BUT THAT IS NO GROUND FOR CRITICIZING THE PLAN ITSELF ANY LEGISLATIVE PROPOSAL EVEN ONE ENDORSED BY THE HERITAGE FOUNDATION CAN BE ALTERED BY CONGRESS IN A WAY THE AUTHOR MIGHT DISAPPROVE DESPITE THE CASUALTIES AND PROPERTY DAMAGE THE EARTHQUAKE THAT STRUCK LOS ANGELES YESTERDAY MORNING WASN'T THE QUOTE BIG ONE QUOTE THAT CALIFORNIANS HAVE BEEN EXPECTING FOR SEVERAL YEARS GEOPHYSICISTS SAID THE NINETEEN NINETY TWO SOUTHERN CALIFORNIA QUAKE WAS THIRTY TIMES MORE POWERFUL THEY ALSO SAID THEY COULDN'T IMMEDIATELY DETERMINE IF YESTERDAY'S QUAKE WAS DUE TO SLIPPAGE OF A KNOWN OR A PREVIOUSLY UNDISCOVERED GEOLOGICAL FAULT THAT WON'T BE DETERMINED UNTIL SEISMOLOGICAL DATA FROM SEVERAL STATIONS HAVE BEEN ANALYZED PRELIMINARY READINGS OF SEISMOGRAPHS SHOWED THAT YESTERDAY'S EARTHQUAKE CENTERED UNDER THE LOS ANGELES COMMUNITY OF NORTHRIDGE REGISTERED ABOUT SIX POINT SIX ON THE RICHTER SCALE FOR MEASURING THE ENERGY RELEASED BY EARTHQUAKES IT WAS FOLLOWED BY MORE THAN A HALF DOZEN AFTERSHOCKS REGISTERING BETWEEN THREE POINT OH AND FIVE POINT OH ON THE RICHTER SCALE THERE'LL PROBABLY BE A LOT OF AFTERSHOCKS REGISTERING FOUR POINT OH TO FIVE POINT OH ON THE SCALE FOR THE NEXT FOUR TO FIVE DAYS SAID GEOPHYSICIST STUART KOYANAGI OF THE U. S. GEOLOGICAL SURVEY'S EARTHQUAKE INFORMATION CENTER IN GOLDEN COLORADO BY COMPARISON WITH YESTERDAY'S QUAKE A MAJOR QUAKE IS ONE THAT REGISTERS SEVEN POINT OH OR HIGHER ON THE RICHTER SCALE THE JUNE NINETEEN NINETY TWO EARTHQUAKE CENTERED AT THE SOUTHERN CALIFORNIA TOWN OF LANDERS NEAR THE MOJAVE DESERT KILLED ONE PERSON THOUGH IT HAD A RICHTER READING OF SEVEN POINT FIVE THE OCTOBER NINETEEN EIGHTY NINE QUAKE IN SAN FRANCISCO WHICH KILLED SIXTY THREE PEOPLE HIT SEVEN POINT ONE ON THE SCALE THE AMOUNT OF DAMAGE AND THE LOSS OF LIFE FROM A QUAKE DEPENDS ON WHERE IT OCCURS AS MUCH AS ON THE AMOUNT OF ENERGY RELEASED MR. KOYANAGI SAID THE NORTHRIDGE QUAKE HIT IN THE HEAVILY POPULATED SAN FERNANDO VALLEY THAT STRETCHES FOR FIFTY MILES NORTH OF DOWNTOWN LOS ANGELES ONLY EARTHQUAKES REGISTERING EIGHT POINT OH OR HIGHER ARE CLASSED AS GREAT QUAKES EXAMPLES BEING THE NINETEEN SIXTY FOUR ALASKA EARTHQUAKE EIGHT POINT FOUR AND THE NINETEEN OH SIX SAN FRANCISCO QUAKE ESTIMATED AT EIGHT POINT THREE ON THE RICHTER SCALE WE'VE LOOKED AT SOME OF THE SEISMOLOGICAL DATA HERE IN PENNSYLVANIA AND IT LOOKS LIKE A TYPICAL QUAKE FOR SOUTHERN CALIFORNIA SAID GEOPHYSICIST CHARLES A. LANGSTON AT PENNSYLVANIA STATE UNIVERSITY IN UNIVERSITY PARK EARTHQUAKE RESEARCHERS HADN'T PREDICTED THE NORTHRIDGE QUAKE QUOTE AT LEAST NOT THAT WE KNOW OF QUOTE SAID MR. KOYANAGI OF THE GEOLOGICAL SURVEY NOR WAS THERE ANY WARNING OF AN IMPENDING QUAKE ALTHOUGH MR. KOYANAGI NOTED THAT LAST WEEK THERE WERE SEVERAL SMALL QUAKES OFF THE COAST OF CALIFORNIA NEAR SANTA MONICA THAT WERE SUSPICIOUS BUT THEY WEREN'T QUITE IN THE SAME AREA AS YESTERDAY'S QUAKE NEVERTHELESS IT WASN'T UNEXPECTED IN THE SENSE THAT SOUTHERN CALIFORNIA HAS BEEN HAVING A LOT OF QUAKES IN THE LAST FEW YEARS SAID PENN STATE'S DOCTOR LANGSTON THE REPEATED SHAKING OF SOUTHERN CALIFORNIA SEEMS TO HAVE SOMETHING TO DO WITH THE MOUNTAIN BUILDING THAT'S GOING ON THERE HE SAID THE SAN FERNANDO VALLEY IS CREATED BY THE SANTA MONICA AND SAN GABRIEL MOUNTAIN RANGES THAT HAVE BEEN INCHING TOWARD EACH OTHER ONE QUESTION GEOPHYSICISTS PROBABLY WILL INVESTIGATE IN COMING MONTHS IS WHETHER THE NORTHRIDGE QUAKE HAS ANY RELATION TO THE LANDERS QUAKE IN JUNE NINETEEN NINETY TWO THE LANDERS QUAKE WAS EXTREMELY UNUSUAL BECAUSE IT SEEMED TO TRIGGER EARTHQUAKES ACROSS THE WESTERN U. S. FOR WEEKS AFTERWARDS INCLUDING QUAKES AS FAR AWAY AS YELLOWSTONE NATIONAL PARK AND CASCADE IDAHO AS THOUGH IT HAD SHAKEN UP THE SUBTERRANEAN GEOLOGY OF THE WHOLE EARTHQUAKE PRONE WEST JANUARY SEVENTEENTH NINETEEN NINETY FOUR NORTHRIDGE AN ESTIMATED SIX POINT SIX MAGNITUDE QUAKE CENTERED NEAR THIS SAN FERNANDO VALLEY TOWN AT LEAST TWO DOZEN DEAD JUNE TWENTY EIGHTH NINETEEN NINETY TWO LANDERS A SEVEN POINT FIVE EARTHQUAKE IN THIS TOWN NEAR SAN BERNARDINO AND A SIX POINT SIX AFTERSHOCK AT BIG BEAR LAKE KILL ONE TODDLER OCTOBER SEVENTEENTH NINETEEN EIGHTY NINE LOMA PRIETA SANTA CRUZ MOUNTAINS SEVEN POINT ONE QUAKE CAUSES WIDESPREAD DAMAGE IN THE SAN FRANCISCO BAY AREA SIXTY THREE PEOPLE DIE OCTOBER FIRST NINETEEN EIGHTY SEVEN WHITTIER A FIVE POINT NINE QUAKE AND A FIVE POINT THREE AFTERSHOCK KILL EIGHT PEOPLE JANUARY TWENTY FOURTH NINETEEN EIGHTY LIVERMORE A FIVE POINT EIGHT QUAKE STRIKES THE AREA EAST OF SAN FRANCISCO AND DAMAGES A NUCLEAR WEAPONS LABORATORY FEBRUARY NINTH NINETEEN SEVENTY ONE SYLMAR A SIX POINT FIVE QUAKE IN THE SAN FERNANDO VALLEY KILLS SIXTY FIVE PEOPLE JULY TWENTY FIRST NINETEEN FIFTY TWO BAKERSFIELD A SEVEN POINT SEVEN QUAKE IN AN AREA FIFTY MILES NORTH OF LOS ANGELES KILLS TWELVE PEOPLE MARCH TENTH NINETEEN THIRTY THREE LONG BEACH A SIX POINT THREE QUAKE KILLS ONE HUNDRED FIFTEEN PEOPLE APRIL EIGHTEENTH TO NINETEEN NINETEEN OH SIX SAN FRANCISCO EARTHQUAKE AND FIRES LEVEL THE CITY KILLING AT LEAST SEVEN HUNDRED PEOPLE SCIENTISTS ESTIMATE THAT THE QUAKE WOULD HAVE REGISTERED EIGHT POINT THREE ON THE RICHTER SCALE CAP GEMINI SOGETI S. A. THE FRENCH COMPUTER SOFTWARE AND SERVICES GROUP ESTIMATED THAT IT WILL POST A LOSS OF FOUR HUNDRED THIRTY FOUR MILLION FRANCS SEVENTY TWO POINT NINE MILLION DOLLARS FOR NINETEEN NINETY THREE WIDENING FROM A SEVENTY TWO MILLION FRANC LOSS IN NINETEEN NINETY TWO CAP GEMINI NOTED THAT THE NINETEEN NINETY TWO LOSS WOULD HAVE BEEN THREE HUNDRED THIRTY THREE MILLION FRANCS WITHOUT A TWO HUNDRED SIXTY ONE MILLION FRANC CAPITAL GAIN ON THE SALE OF SOME PARIS REAL ESTATE CAP GEMINI ALSO ANNOUNCED PLANS TO BOOST ITS CAPITAL RESOURCES BY ONE POINT FIVE BILLION FRANCS ITS PARENT COMPANY SOGETI S. A. IS EXPECTED TO SUBSCRIBE TO THE ISSUE AT A PROPORTION EQUIVALENT TO ITS SIXTY ONE POINT FIVE PERCENT STAKE AND THE SOFTWARE GROUP SAID IT HAS DECIDED TO INTENSIFY EFFORTS IN NINETEEN NINETY FOUR TO DISPOSE OF NONESSENTIAL ASSETS THOSE EFFORTS RECENTLY RESULTED IN THE SALE OF STAKES IN SWEDEN'S JACOBSON AND WIDMARK AS WELL AS CARELCOMP IN FINLAND AND FRANCE'S COPERNIQUE S. A. LOOKING AHEAD TO THIS YEAR'S PERFORMANCE CAP GEMINI SAID AN ANTICIPATED IMPROVEMENT OF ECONOMIC CONDITIONS SHOULD ALLOW THE GROUP TO QUOTE PROGRESSIVELY RETURN TO GROWTH AND PROFITABILITY QUOTE MEANWHILE IN GERMANY CAP GEMINI ANNOUNCED PLANS TO MERGE CAP DEBIS WITH DEBIS SYSTEMHAUS IT SAID THE MERGER WOULD REINFORCE COOPERATION BETWEEN CAP GEMINI AND GERMAN PARTNER DEBIS CAP GEMINI SAID NINETEEN NINETY THREE CONSOLIDATED REVENUE IS ESTIMATED AT ABOUT ELEVEN BILLION FRANCS DOWN SEVEN POINT FOUR PERCENT FROM ELEVEN POINT NINE BILLION FRANCS THE PREVIOUS YEAR CAP GEMINI DIDN'T SPECIFY LAST YEAR'S OPERATING PROFIT ALTHOUGH THE COMPANY NOTED THAT IT DIPPED TO ABOUT TWO PERCENT OF REVENUE FROM TWO POINT NINE PERCENT IN NINETEEN NINETY TWO THE FIGURE IS AFTER AMORTIZATION OF GOODWILL AFTER YEARS OF ACQUISITIONS AND FIVEFOLD REVENUE GROWTH BETWEEN NINETEEN EIGHTY FIVE AND NINETEEN NINETY TWO CAP GEMINI HAS BEEN HIT BY THE DOWNTURN IN THE COMPUTER INDUSTRY AND THE RECESSION IN GENERAL SPAIN'S HIGH COURT RULED TO ADMIT A SUIT BROUGHT BY THE KUWAIT INVESTMENT OFFICE AGAINST SEVEN OF ITS FORMER EMPLOYEES FRIDAY'S RULING CAME IN RESPONSE TO AN APPEAL FILED BY THE K. I. O. AFTER THE COURT'S JUDGE FOR MONETARY AFFAIRS REJECTED THE SUIT FOUR TIMES LAST YEAR ON THE GROUNDS THAT IT DIDN'T PROVIDE ENOUGH EVIDENCE OF THE ALLEGED CRIMES THE K. I. O. CLAIMS THAT FORMER EXECUTIVES OF GRUPO TORRAS S. A. THE K. I. O.'S SPANISH HOLDING COMPANY LOST OR DIVERTED MORE THAN ONE HUNDRED BILLION PESETAS SEVEN HUNDRED TWO POINT FIVE MILLION DOLLARS OF KUWAITI INVESTMENTS IN SPAIN BETWEEN NINETEEN EIGHTY SIX AND NINETEEN NINETY TWO ACCORDING TO THE K. I. O. TORRAS WAS FORCED INTO RECEIVERSHIP IN DECEMBER NINETEEN NINETY TWO BECAUSE OF GROSS MISMANAGEMENT BY ITS EXECUTIVES A CRIME THE JUDGE FOR MONETARY AFFAIRS SAID WASN'T INCLUDED IN SPAIN'S PENAL CODE BUT THE HIGH COURT SAID IN A WRIT THAT THE CRIMES ALLEGED IN THE SUIT FALSIFICATION OF MERCANTILE AND PUBLIC DOCUMENTS PRICE MANIPULATION FRAUD AND TAX EVASION QUOTE ARE SUFFICIENTLY DOCUMENTED WITH THE DESIGNATION OF PEOPLE DATES PLACES AND VOLUMES THAT HAVE BEEN EVADED FOR AN ESTIMATED TOTAL OF MORE THAN ONE HUNDRED BILLION PESETAS QUOTE LAWYERS FOR THE K. I. O. FIRST FILED A ONE HUNDRED FOURTEEN PAGE SUIT AGAINST ITS FORMER EXECUTIVES IN JANUARY NINETEEN NINETY THREE NAMING AS DEFENDANTS FAHD AL SABAH FORMER CHAIRMAN OF THE K. I. O. AND TORRAS FOUAD JAFFAR THE K. I. O.'S FORMER GENERAL MANAGER WHO RESIGNED IN EARLY NINETEEN NINETY AND JAVIER DE LA ROSA THE FORMER DEPUTY CHAIRMAN OF TORRAS UNTIL HIS RESIGNATION IN MAY NINETEEN NINETY TWO THE OTHER FOUR DEFENDANTS WERE SPANISH EXECUTIVES OF TORRAS AND CLOSE COLLABORATORS OF MR. DE LA ROSA FROM NINETEEN EIGHTY SIX TO NINETEEN NINETY TWO THE K. I. O. WHICH CLAIMS IT LOST FIVE BILLION DOLLARS ON ITS INVESTMENTS IN SPAIN HAS SOUGHT TO REDUCE ITS PRESENCE THERE SINCE GRUPO TORRAS SUSPENDED PAYMENTS ON ITS TWO HUNDRED FORTY THREE BILLION PESETAS OF DEBT OF THE K. I. O.'S FOUR PRINCIPAL UNITS IN THE CHEMICAL FOOD REAL ESTATE AND PAPER SECTORS ONLY THE SUGAR COMPANY EBRO AGRICOLAS CIA DE ALIMENTACION HAS MADE A PROFIT IN THE PAST TWO YEARS TELLABS INCORPORATED AFTER FOUR YEARS OF SALES GROWTH IN NORTH AMERICA IS FOCUSING ON EUROPEAN MARKETS FOR THE NEXT FISCAL YEAR SAID PRESIDENT AND CHIEF EXECUTIVE OFFICER MICHAEL J. BIRCK IN AN INTERVIEW MR. BIRCK SAID THE TELECOMMUNICATIONS CONCERN'S DOMESTIC BUSINESS QUOTE HAS GONE THROUGH MOST OF ITS GROWTH QUOTE HE SAID WHAT WE WANT NOW IS TO BE INVOLVED IN THE GLOBAL MARKETPLACE AND MOVE TOWARDS BECOMING A BILLION DOLLAR COMPANY TELLABS A MAKER OF VOICE AND DATA EQUIPMENT FOR PHONE COMPANIES HAS ALREADY IMPRESSED WALL STREET WITH ITS STEADY GROWTH OVER THE PAST YEAR IT HAS PROFITED PRIMARILY FROM THE TELECOMMUNICATIONS INDUSTRY'S TREND TOWARD CROSS CONNECT SYSTEMS WHICH ENABLE FIBER OPTIC NETWORKS TO CARRY VOICE AND DATA TRANSMISSIONS IN NINETEEN NINETY THREE TELLABS POSTED A NINETY PERCENT INCREASE IN EARNINGS TO THIRTY TWO MILLION DOLLARS OR ONE DOLLAR AND FORTY FIVE CENTS A SHARE ON SALES OF THREE HUNDRED TWENTY POINT FIVE MILLION DOLLARS AFTER INTRODUCING ITS FLAGSHIP TITAN DIGITAL CROSS CONNECT SYSTEM IN NINETEEN NINETY ONE THE COMPANY ADDED TO SALES IN NINETEEN NINETY THREE WITH VARIOUS TITAN BASED HARDWARE AND SOFTWARE PACKAGES TITAN SALES ORIGINALLY PROJECTED BY ANALYSTS TO BE SIXTY MILLION DOLLARS LAST YEAR TOPPED EIGHTY MILLION DOLLARS SURPRISINGLY STRONG DEMAND FOR ECHO CANCELERS ALSO ADDED FIFTY MILLION DOLLARS TO THE COMPANY'S SALES BUT WITH TELLABS' DOMESTIC GROWTH STARTING TO EASE MR. BIRCK NOW SEES CENTRAL AND EASTERN EUROPE AS THE IMPORTANT SITES FOR EXPANSION NORTH AMERICA HAS SLOWED DOWN HE SAID BUT THE REST OF THE WORLD ISN'T IN THAT SITUATION WE'RE PLANNING ON GOING IN AND LEAPFROGGING OVER A LOT OF EUROPE'S OUTDATED TECHNOLOGY LAST YEAR TELLABS ACQUIRED MARTIS OY A CLOSELY HELD FINNISH MAKER OF TELECOMMUNICATIONS NETWORKING EQUIPMENT IN A DEAL VALUED AT SEVENTY MILLION DOLLARS THE ACQUISITION WAS AIMED AT PROVIDING A MAJOR EUROPEAN BUSINESS CENTER WHEN COMBINED WITH ITS EXISTING FACILITY IN SHANNON IRELAND AT THE SAME TIME TELLABS HAS EXPANDED ITS TIES TO A SWEDISH DISTRIBUTOR AND IMPROVED ITS CANADIAN RESEARCH FACILITY MR. BIRCK WANTS TELLABS' INTERNATIONAL BUSINESS WHICH CURRENTLY ACCOUNTS FOR THIRTY PERCENT OF TOTAL REVENUE TO GROW TO FIFTY PERCENT OF REVENUE BY THE END OF THE YEAR THAT'S GOING TO BE A CHALLENGE SINCE I DON'T THINK OUR DOMESTIC NUMBERS ARE GOING TO SIT STILL HE SAID INTERNATIONAL SALES ARE GOING TO HAVE TO HIT A MOVING TARGET THE PUSH TOWARD EUROPE IS CRUCIAL FOR TELLABS TO QUOTE AVOID BEING STEPPED ON QUOTE BY GIANT COMPETITORS NORTHERN TELECOM LIMITED AND AMERICAN TELEPHONE AND TELEGRAPH COMPANY COMPANIES THE EXECUTIVE CALLS QUOTE ELEPHANTS QUOTE MOREOVER THE EXPANSION COULD SERVE TO REINFORCE THE COMPANY'S CREDIBILITY AMONG ITS CUSTOMERS THIS INDUSTRY DOESN'T TAKE TO NEWCOMERS VERY EASILY SAID MR. BIRCK CUSTOMERS HAVE TO HAVE SOME CONFIDENCE THAT WE'RE UP TO THE TASK OF SERVING THEM MR. BIRCK A FIFTY SIX YEAR OLD FORMER ENGINEER HELPED START TELLABS TWENTY YEARS AGO AND HAS BEEN WIDELY PRAISED AS A MANAGER WHO PAYS CLOSE ATTENTION TO THE DESIGN AND RESEARCH OF HIS COMPANY'S PRODUCTS TELLABS SPENT FIVE YEARS DEVELOPING TITAN AND LAST YEAR ALLOCATED SIXTEEN PERCENT OF TOTAL REVENUE TO LONG TERM RESEARCH HE'S NOT AFRAID TO INVEST SHAREHOLDERS' DOLLARS IN RESEARCH WHEN HE BELIEVES THERE'S A BIG PAYOFF SAID STEVEN D. LEVY AN ANALYST WITH HAMBRECHT AND QUIST WITH THE TITAN IT HAS PAID OFF IN SPADES MR. BIRCK ACKNOWLEDGES THAT WHEN DISCUSSIONS HERE RETURN TO DESIGN AND PRODUCT THAT'S WHEN I GET THE MOST ENERGIZED DESPITE THE PROMISING PICTURE IN EUROPE AND TELLABS' STEADY EARNINGS GROWTH THE COMPANY'S STOCK HAS DECLINED SINCE LAST OCTOBER AFTER THE STOCK RALLIED TO AN OCTOBER HIGH OF FIFTY FOUR POINT THREE SEVEN FIVE DOLLARS FROM A SPLIT ADJUSTED TWELVE POINT SIX TWO FIVE DOLLARS IN APRIL TELLABS' THIRD QUARTER RESULTS MET ANALYSTS' EXPECTATIONS BUT DISAPPOINTED WALL STREET OBSERVERS WHO HAD BEEN HOPING FOR MORE QUOTE PEOPLE SET THESE ESTIMATES AND YOU'RE SUPPOSED TO BEAT THEM EVERY TIME QUOTE SAID MR. BIRCK IT REALLY DOESN'T HAPPEN THAT WAY IN LATE NASDAQ STOCK MARKET TRADING ON FRIDAY TELLABS SHARES WERE QUOTED AT FIFTY ONE DOLLARS AND SEVENTY FIVE CENTS UP TWO DOLLARS AND TWENTY FIVE CENTS FOR THE CURRENT FIRST QUARTER BIRCK EXPECTS EARNINGS IN THE RANGE OF TWENTY THREE TO TWENTY SIX CENTS A SHARE REFLECTING A THREE FOR TWO STOCK SPLIT IN NOVEMBER THE COMPANY EARNED AN ADJUSTED TWENTY SIX CENTS A SHARE IN NINETEEN NINETY THREE'S FIRST QUARTER INCLUDING A GAIN OF SEVEN CENTS FOR AN ACCOUNTING ADJUSTMENT SOME CLOSED END MUTUAL FUNDS WEREN'T ABLE TO REPORT NET ASSET VALUES ON FRIDAY BECAUSE OF A SEVERE SNOW STORM ALONG THE EAST COAST PROCEEDS IN SECURITIES UNLIKE OPEN END FUNDS CLOSED ENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C. CHICAGO N. N. Y. S. E. O. NASDAQ T. TORONTO Z. DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY N. A. V. WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE N. A. V. OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES FIFTY TWO WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST TWELVE MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME. A THE N. A. V. AND MARKET PRICE ARE EX DIVIDEND B. THE N. A. V. IS FULLY DILUTED C. N. A. V. MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D. N. A. V. MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E. N. A. V. ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V. N. A. V. IS CONVERTED AT THE COMMERCIAL RAND RATE. Y. N. A. V. AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N. SLASH A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE MUTUAL FUND GROUPS THAT CHARGE SALES COMMISSIONS ARE DISCOVERING THEY HAVE TO WORK A BIT HARDER QUOTE LOAD GROUPS ARE WAKING UP TO THE FACT THAT THEY'RE LOSING MARKET SHARE QUOTE SAID DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER MONEY WAS COMING IN BUSINESS WAS GOOD THEY WERE TURNING IN RECORD PROFITS BUT GOING FORWARD INVESTORS ARE ACTIVELY SEEKING NO LOAD FUNDS NO LOAD FUNDS HAVE MADE TREMENDOUS GAINS SINCE NINETEEN EIGHTY EIGHT WHEN THEY ACCOUNTED FOR ABOUT THIRTY SEVEN PERCENT OF NEW STOCK AND BOND FUND SALES LAST YEAR THE NO LOAD FUNDS CAPTURED FORTY THREE PERCENT OF THE MARKET NEW SALES OF NO LOAD FUNDS IN NINETEEN NINETY THREE WERE ONE HUNDRED EIGHTY SEVEN POINT NINE BILLION DOLLARS OR FORTY THREE PERCENT WHILE LOAD FUND SALES WERE TWO HUNDRED FORTY NINE POINT FIVE BILLION DOLLARS OR FIFTY SEVEN PERCENT ACCORDING TO THE MUTUAL FUND TRADE GROUP INVESTMENT COMPANY INSTITUTE FUND GROUPS ACKNOWLEDGE THEY'VE LET NO LOAD FUNDS BATTER THEIR REPUTATIONS TO SAY THAT ISN'T A PART OF IT WOULD BE WRONG WE'VE ABDICATED THE PLAYING FIELD SAID RICHARD REDEKER CHIEF EXECUTIVE OF PRUDENTIAL MUTUAL FUNDS A UNIT OF PRUDENTIAL SECURITIES THAT SELLS ITS FUNDS THROUGH BROKERS PRUDENTIAL SECURITIES IS A UNIT OF PRUDENTIAL INSURANCE COMPANY OF AMERICA NEWARK N. J. THE LOAD FUND INDUSTRY HAS DONE A LOUSY JOB OF MARKETING PROFESSIONAL ADVICE SAID JERRY POTTS A SENIOR VICE PRESIDENT AND DIRECTOR OF SALES DEVELOPMENT AT MASSACHUSETTS FINANCIAL SERVICES A BOSTON UNIT OF SUN LIFE ASSURANCE COMPANY OF CANADA QUOTE THE NO LOADS HAVE SPENT MORE MONEY IN ADVERTISING AND THEY'VE BEEN MORE VOCAL AS A GROUP QUOTE TO COMBAT THE TREND MUTUAL FUND GROUPS ARE PROMOTING THE MERITS OF LOAD FUND INVESTING LAST WEEK BOSTON BASED PUTNAM INVESTMENTS A UNIT OF MARSH AND MCLENNAN COMPANIES UNVEILED A SERIES OF PRINT ADVERTISEMENTS STRESSING HOW FINANCIAL ADVISERS HELP INVESTORS SELECT MUTUAL FUNDS MASSACHUSETTS FINANCIAL SERVICES STARTED SIMILAR ADS IN DECEMBER LAST FALL PASADENA FUNDS RUN BY ROGER ENGEMANN MANAGEMENT COMPANY OF PASADENA CALIFORNIA BROUGHT OUT A BROCHURE TITLED TEN GOOD REASONS WHY YOU SHOULD PAY A MUTUAL FUND LOAD WITH A CHOICE OF MORE THAN FOUR THOUSAND FUNDS AND INDUSTRY JARGON SUCH AS INVERSE STRIPS AND COLLATERALIZED MORTGAGE OBLIGATIONS TO COMPLICATE DECISION MAKING THE RIGHT FUND CAN BE DIFFICULT TO FIND IF AN INVESTOR DOESN'T HAVE THE TIME PATIENCE OR KNOWLEDGE MASSACHUSETTS FINANCIAL'S MR. POTTS SAID MANY INVESTORS END UP CHASING FUNDS IN A FROTHY STOCK MARKET OR SIMPLY PICK THE HOTTEST PRODUCT THAT'S WHERE A BROKER OR FINANCIAL PLANNER COMES IN THE PASADENA FUNDS' BROCHURE SAYS A FINANCIAL ADVISER WITH WHOM YOU ARE COMFORTABLE WILL HELP YOU UNDERSTAND THE TERMS AND DECIDE WHETHER TO BUY A VOLATILE OR CONSERVATIVE FUND THE MASSACHUSETTS FINANCIAL ADS POSE QUESTIONS SUCH AS WHEN SHOULD I START INVESTING FOR TAX FREE INCOME OR IF A BOND HAS A GUARANTEED RATE OF RETURN WHY DOES ITS PRICE FLUCTUATE THE ADS' ANSWER ASK A FINANCIAL ADVISER NO LOAD GROUPS TAKE ISSUE WITH THE ADVERTISING CAMPAIGNS QUOTE YOU MIGHT BE GETTING INVESTMENT ADVICE BUT ONLY ON THE PRODUCTS THE BROKER IS GOING TO MAKE MONEY ON QUOTE SAID BRIAN BLOMQUIST CHAIRMAN OF THE ONE HUNDRED PERCENT NO LOAD MUTUAL FUND COUNCIL AND A VICE PRESIDENT WITH THE LINDNER FUNDS IN SAINT LOUIS MR. BLOMQUIST ALSO SAID BROKERS AND FEE BASED FINANCIAL ADVISERS ARE NOT THE SAME FINANCIAL ADVISERS CHARGE A PERCENTAGE OF ASSETS TO BE INVESTED AND SELECT APPROPRIATE CHOICES FROM AMONG FOUR THOUSAND FUNDS BROKERS SELL IN HOUSE PRODUCTS AND OUTSIDE FUNDS THAT HAVE SELLING AGREEMENTS WITH THEIR FIRMS LOAD GROUPS HOWEVER ARE ON THE RIGHT TRACK AFTER BEING SO LONG ON THE DEFENSIVE MORNINGSTAR'S MR. PHILLIPS SAID THEY HAVEN'T TRUMPETED THEIR STRONGER CASE THAT IF YOU PAY A LOAD YOU GET AN ADDED BENEFIT OF SERVICE HE SAID LOAD IS SUCH A HIDEOUS WORD HOW DO YOU MAKE A CASE FOR A LOAD WHAT YOU DO IS SAY THAT FOR INVESTORS WHO NEED HELP THEY GET SOMEONE TO SIT DOWN AND EDUCATE THEM ABOUT WHAT THEY'RE INVESTING IN AND WHY BUT MANY LOAD FUND GROUPS ARE THEIR OWN WORST ENEMY MR. PHILLIPS SAID INSTEAD OF TOUTING THE ADVANTAGES OF USING A BROKER OR A FINANCIAL PLANNER LOAD GROUPS ARE SHUFFLING PRICING AND CONFUSING INVESTORS THEY'RE TRYING TO SAY WE CAN BE NO LOADS TOO BUT THEY CAN'T MR. PHILLIPS SAID SHUFFLING FEES IS INSULTING TO BROKERS INSTEAD OF BEING UPFRONT THEY'RE TRYING TO MAKE IT LOOK MORE LIKE NO LOADS IT'S LIKE SAYING THEY'RE DOING SOMETHING WRONG IN THE FIRST PLACE QUOTE IN GENERAL A FUND SHARES CHARGE AN UPFRONT COMMISSION WHILE B. SHARES ARE SOLD WITHOUT THAT CHARGE BUT USUALLY CARRY A COMMISSION IF AN INVESTOR REDEEMS THE SHARES IN THE FIRST FEW YEARS B. SHARES ALSO USUALLY CARRY A HIGHER YEARLY EXPENSE RATIO THAN A SHARES NOW ADDED ARE C. AND D. SHARES WHICH CHARGE A SALES COMMISSION FROM YEARLY FUND EXPENSES THESE LEVEL LOAD PRICINGS ON FUNDS ARE ATTRACTING NO LOAD INVESTORS AT J. AND W. SELIGMAN AND COMPANY A NEW YORK MONEY MANAGER THAT OFFERS THIRTY FUNDS SAID DONALD PITTI A MANAGING DIRECTOR WHILE SOME INVESTORS RESIST PAYING AN UPFRONT SALES CHARGE AND MANY CALL FOR LOWER FEES THEY STILL WANT FINANCIAL ADVICE MR. PITTI SAID AND THAT MAKES THEM WILLING TO PAY A ONE PERCENT YEARLY FEE THAT GOES TO BROKERS WITH THE SELIGMAN FUNDS THE CHARGE DROPS TO ZERO POINT TWO FIVE PERCENT A YEAR WHEN THE TOTAL AMOUNT PAID BY THE INVESTOR REACHES SIX AND ONE QUARTER PERCENT ALONG WITH THE NEW PRICING SELIGMAN PLANS NEW ADVERTISEMENTS WITH THE WORKING TITLE OF NO CHARGES NO FEES NO HELP QUOTE MR. PITTI SAID MORNINGSTAR'S MR. PHILLIPS SAID LOAD GROUPS CAN'T GET BY WITH ADVERTISEMENTS ALONE THEY NEED TO TRAIN THEIR SALES FORCES AND MAKE SURE BROKERS RECOMMEND THE RIGHT FUNDS AND NOT SIMPLY GENERATE COMMISSIONS HE SAID PUTNAM SAYS THAT IN ADDITION TO EDUCATING ITS SALES FORCE IT HAS REWRITTEN FUND PROSPECTUSES AND INVESTOR LITERATURE TO MAKE FINANCIAL TERMS MORE READER FRIENDLY IT'S SO LATE IN THE GAME TO MAKE THIS POSITIVE CASE IF IT'S ONLY GOING TO BE HALFHEARTED MR. PHILLIPS SAID INTERNATIONAL BUSINESS MACHINES CORPORATION AGREED TO MAKE A SOPHISTICATED NEW GENERATION OF MAINFRAME CHIPS FOR ITS OLD RIVAL UNISYS CORPORATION ACCORDING TO INDUSTRY EXPERTS FAMILIAR WITH THE DEAL THE AGREEMENT TO BE ANNOUNCED TOMMORROW PROVIDES I. B. M. WITH A SOLID CUSTOMER FOR ITS CHIP MANUFACTURING BUSINESS WHILE UNISYS WHICH HAS BEEN TRYING TO MAKE FEWER PARTS FOR ITS COMPUTERS GAINS A RELIABLE SUPPLIER MOTOROLA CORPORATION AND INTEL CORPORATION ARE TWO OF UNISYS' BIGGEST SUPPLIERS NOW EXACT TERMS OF THE CONTRACT BETWEEN I. B. M. AND UNISYS WEREN'T AVAILABLE I. B. M. ABOUT ONE YEAR AGO INCREASED ITS DRIVE TO MAKE AND SUPPLY MICROPROCESSORS FOR OUTSIDE CUSTOMERS THE NEW CHIPS ARE BASED ON THE CMOS DESIGN THAT RUNS P. C.S I. B. M. IS CONVERTING ITS MAINFRAME LINE TO RUN ON CMOS BECAUSE THOSE CHIPS ARE MORE EFFICIENT AND LESS COSTLY TO MANUFACTURE THAN BIPOLAR CHIPS THAT CURRENTLY DRIVE THE MAINFRAME BASED IN BLUE BELL PENNSYLVANIA UNISYS WHICH IS AHEAD OF THE INDUSTRY IN THE CMOS TRANSITION WOULD BECOME THE LARGEST OUTSIDE CUSTOMER OF CMOS CHIPS MADE BY I. B. M. THOSE FAMILIAR WITH THE AGREEMENT SAID UNISYS WOULD PROVIDE THE DESIGN FOR ITS OWN VERSION OF CMOS FOR I. B. M. TO MANUFACTURE I. B. M. WHICH HAS NUMEROUS SUPPLY AGREEMENTS WITH OTHER COMPUTER MAKERS HAS SAID IT IS ACTIVELY SEEKING OTHER CUSTOMERS THE COMPANY HAS BEEN A BIG MANUFACTURER OF INTEL CHIPS FOR ITS OWN COMPUTERS BUT ITS BIGGEST PRODUCTION EFFORT NOW IS CENTERED ON THE NEW POWERPC CHIP A HIGH SPEED CHIP BASED ON THE RISC ARCHITECTURE WHICH STANDS FOR QUOTE REDUCED INSTRUCTION SET COMPUTING QUOTE I. B. M. HAS AN AGREEMENT TO MAKE POWERPC CHIPS FOR APPLE COMPUTER WHICH IS CONVERTING ITS P. C.S TO RUN ON THE POWERPC DESIGNED BY MOTOROLA I. B. M. AND APPLE POWERPC IS INDEPENDENTLY MANUFACTURED BY MOTOROLA AND I. B. M. BASED IN ARMONK N. Y. I. B. M. MAKES BOTH THE POWERPC AND CMOS CHIPS IN BURLINGTON VERMONT SUPPLY AGREEMENTS FOR THESE CHIPS AREN'T EXPECTED TO AFFECT EMPLOYMENT OR MANUFACTURING AT THE HUDSON VALLEY N. Y. BIPOLAR CHIP PLANTS WHICH HAVE TAKEN HUGE HITS AS MAINFRAME PRODUCTION SLOWS AND THE CMOS TRANSITION OCCURS LOST IN THE DEBATE OVER ELECTRIC VEHICLES IS AN UGLY TRUTH THAT MAY ULTIMATELY WIND UP ON QUOTE OPRAH QUOTE ELECTRIC VEHICLES CAN BE BAD FOR YOUR LOVE LIFE SO SAYS CLARE BELL OF SAN FRANCISCO MS. BELL EDITS CURRENT EVENTS A NATIONAL NEWSLETTER FOR ELECTRIC VEHICLE ENTHUSIASTS INSPIRED BY HER OWN ROCKY RELATIONSHIP MS. BELL WROTE A COLUMN IN THE FEBRUARY ISSUE ENTITLED WAYS TO KEEP YOUR EV AND YOUR LOVER IF HAVING AN EV IN YOUR LIFE IS IMPORTANT TO YOU EXPLAIN WHY WITHOUT GETTING ON A SOAPBOX SUGGESTS MS. BELL EVEN IF YOUR PARTNER DOESN'T AGREE HE OR SHE CAN EMPATHIZE AND UNDERSTAND WELL MAYBE SAYS COLEMAN EASTON MS. BELL'S LOVER OF TWELVE YEARS AFTER ALL ELECTRIC VEHICLES CAN BE EXPENSIVE AND TIME CONSUMING HE SAYS MS. BELL HERSELF HAS SPENT MORE THAN TWENTY THOUSAND DOLLARS TO GET A DILAPIDATED VOLKSWAGEN BEETLE CHASSIS AND A WORN OUT PORSCHE NINE HUNDRED FOURTEEN SPORTS CAR TO RUN ON ELECTRICITY PROJECTS THAT KEPT HER IN THE GARAGE MANY NIGHTS TODAY EVEN SHE ADMITS THAT SOME OF THOSE NIGHTS MIGHT HAVE BEEN BETTER SPENT ELSEWHERE AND THERE ARE ALL THOSE NIGHTS AWAY FROM HOME AT ELECTRIC AUTO ASSOCIATION MEETINGS THERE WERE TIMES SHE COULDN'T GET BACK MR. EASTON RECALLS SHE HAD TO STAY SOMEWHERE ELSE BECAUSE THE CAR NEEDED TO BE RECHARGED OF COURSE SOME COUPLES SAY THEY GET A CHARGE OUT OF ELECTRIC VEHICLES MARY ANN CHAPMAN OF TUCSON ARIZONA SAYS SHE AND HER HUSBAND SPENT WEEKS WORKING TOGETHER ON VEHICLES THEY WERE CONVERTING INTO QUOTE ELECTRICS QUOTE INDEED WITHIN FOUR MONTHS OF THEIR FIRST RIDE TOGETHER IN AN ELECTRIC VEHICLE THEY MARRIED WE'RE AN EIGHTY HOURS A WEEK ELECTRIC VEHICLE COUPLE SAYS MS. CHAPMAN WHO OPERATES HER OWN ELECTRIC VEHICLE BUSINESS FORTUNATELY COUNSELING HAS HELPED MR. EASTON TO BETTER COPE WITH MS. BELL'S FASCINATION WITH ELECTRIC VEHICLES MS. BELL ALSO FOLLOWS SOME OF HER OWN ADVICE BUDGETING MORE QUALITY TIME WITH MR. EASTON IN FACT THE TWO OFTEN COLLABORATE ON ROMANCE NOVELS BUT MR. EASTON WHO STICKS TO DRIVING HIS NINETEEN EIGHTY NINE GASOLINE POWERED HONDA ACCORD SAYS HE MAY ALSO PURSUE A PROJECT OF HIS OWN I WAS THINKING ABOUT A ROMANCE NOVEL ABOUT A COUPLE WHO SQUABBLE OVER AN ELECTRIC VEHICLE HE SAYS WESTERN GERMAN RETAIL SALES FELL AN INFLATION ADJUSTED SIX PERCENT IN DECEMBER FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE SAID THE DECEMBER DROP FROM A YEAR EARLIER WAS SLIGHTLY BETTER THAN ANALYSTS' EXPECTATIONS OF ROUGHLY SIX POINT SIX PERCENT DECLINE ANTHONY NOZZOLILLO FORTY FIVE YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER AT THIS UTILITY SUCCEEDING RALPH T. BRANDIFINO WHO LEFT THE COMPANY IN SEPTEMBER THEODORE A. BABCOCK THIRTY NINE WAS NAMED TREASURER SUCCEEDING MR. NOZZOLILLO TIMBERLAND COMPANY'S STOCK FELL NINETEEN PERCENT AFTER THE COMPANY REPORTED LOWER THAN EXPECTED FOURTH QUARTER RESULTS ATTRIBUTED TO PRICE CUTS IN ITS OUTDOOR SHOE LINE THE COMPANY ALSO CONFIRMED THAT IT FORECAST A PROFITLESS FIRST SIX MONTHS OF NINETEEN NINETY FOUR IN A CONFERENCE CALL WITH SECURITIES ANALYSTS THE PREDICTION HEIGHTENED WALL STREET'S FEARS ABOUT THE DAMAGE THAT TIMBERLAND WILL INCUR FROM LOW PRICED OUTDOOR SHOES INTRODUCED BY COMPETITORS INCLUDING NIKE INCORPORATED AND REEBOK INTERNATIONAL LIMITED ANALYSTS SAID THAT IN ITS FIGHT FOR MARKET SHARE THE COMPANY'S PRICE CUTS ON CERTAIN PRODUCT LINES HAVE HURT PROFIT MARGINS SHARES OF TIMBERLAND WHICH IS BASED IN HAMPTON N. H. TUMBLED NINE POINT EIGHT SEVEN FIVE DOLLARS TO FORTY THREE DOLLARS AND FIFTY CENTS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY FOR THE FOURTH QUARTER TIMBERLAND'S NET INCOME ROSE FORTY SIX PERCENT TO SEVEN MILLION DOLLARS OR SIXTY TWO CENTS A SHARE COMPARED WITH NET OF FOUR POINT EIGHT MILLION DOLLARS OR FORTY FOUR CENTS A SHARE ANALYSTS WERE EXPECTING THE LATEST QUARTERLY RESULTS TO BE SIXTY FIVE CENTS A SHARE SALES ROSE FORTY PERCENT TO ONE HUNDRED TWENTY THREE POINT TWO MILLION DOLLARS COMPARED WITH EIGHTY EIGHT POINT SIX MILLION DOLLARS IN THE YEAR AGO QUARTER ANALYSTS SAID THE COMPANY MAINTAINED IN ITS FRIDAY CONFERENCE CALL THAT IT IS STILL COMFORTABLE WITH EXPECTATIONS OF NINETEEN NINETY FOUR NET INCOME OF THREE DOLLARS A SHARE THEY ALSO SAID THE COMPANY FORECAST THAT PRICE CUTS WOULD SHAVE TEN MILLION DOLLARS OFF GROSS PROFITS OR PROFITS BEFORE TAXES AND INTEREST IN NINETEEN NINETY FOUR THE COMPANY DECLINED TO DISCUSS THESE AND OTHER DETAILS OF THE CALL ANALYSTS REMAINED CAUTIOUS QUOTE I'M SKEPTICAL I'VE LOWERED MY NINETEEN NINETY FOUR ESTIMATE FROM THREE DOLLARS AND THIRTY FIVE CENTS TO TWO DOLLARS AND SEVENTY FIVE CENTS SAID STEVEN FRANKEL AN ANALYST AT ADAMS HARKNESS AND HILL INCORPORATED TIMBERLAND'S NICHE OF OUTDOOR SHOES AND BOOTS RECENTLY HAS ATTRACTED MORE COMPETITION AS FASHION TRENDS HAVE SHIFTED FROM THE NINETEEN EIGHTIES SNEAKER BOOM WITH THE ADDITION OF NIKE REEBOK AND OTHERS THE MARKET HAS GROWN CROWDED PROMPTING PRICE CUTS TIMBERLAND'S TOP OF THE LINE FOOTWEAR HAS RETAILED AT ONE HUNDRED SIXTY NINE DOLLARS IN THE PAST BUT THE COMPANY NOW OFFERS SOME SHOES AS LOW AS SEVENTY FIVE DOLLARS BUT MR. FRANKEL SAID THE TIMBERLAND BOOT IS STILL A PRODUCT THAT CONSUMERS WANT THE COMPANY SUFFERS FROM AN INABILITY TO MEET DEMAND HE SAID MANAGEMENT STILL HAS PROBLEMS ACCURATELY FORECASTING THE BUSINESS AND DELIVERING THE PRODUCTS ON TIME FOR NINETEEN NINETY THREE TIMBERLAND REPORTED A SEVENTY FOUR PERCENT INCREASE IN NET TO TWENTY TWO POINT FIVE MILLION DOLLARS OR TWO DOLLARS AND ONE CENT A SHARE ON A FORTY FOUR PERCENT SALES INCREASE TO FOUR HUNDRED EIGHTEEN POINT NINE MILLION DOLLARS FOR NINETEEN NINETY TWO THE CONCERN HAD NET OF TWELVE POINT NINE MILLION DOLLARS OR ONE DOLLAR AND EIGHTEEN CENTS A SHARE ON SALES OF TWO HUNDRED NINETY ONE POINT FOUR MILLION DOLLARS MURRAY H. HUTCHISON FIFTY FIVE YEARS OLD WILL RETIRE AS CHAIRMAN EFFECTIVE APRIL FIRST OF THIS PROVIDER OF ENVIRONMENTAL MANAGEMENT SERVICES NO REPLACEMENT WAS NAMED FOR MR. HUTCHISON WHO WILL REMAIN A MEMBER OF THE BOARD CALL IT THE WAR OF THE ROSES OR BETTER STILL THE WAR TO DELIVER THE ROSES FAST THE ONCE GENTEEL BUSINESS OF FLORAL DELIVERY IS BEING SHAKEN UP BY AGGRESSIVE MARKETERS CATERING TO AMERICANS' GROWING DEMAND FOR CONVENIENCE EVEN WHEN IT COMES TO EXPRESSING FEELINGS OF THE HEART THE COMBATANTS HAVE RUN CONTROVERSIAL ADS PROMISING GREATER CUSTOMER SATISFACTION AND MORE FOR THE MONEY THAN TRADITIONAL FLOWERS BY WIRE SERVICES THE MARKETING IS ESPECIALLY INTENSE FOR VALENTINE'S DAY WHEN FLORISTS WORK AROUND THE CLOCK ARRANGING AND DELIVERING CLOSE TO THREE HUNDRED MILLION FLOWERS AMERICANS WHO THIS YEAR WILL SPEND ABOUT ONE POINT FIVE BILLION DOLLARS SENDING FLOWERS APPARENTLY ARE BUYING THE NEW PITCHES INSTEAD OF RELYING ONLY ON LOCAL FLORISTS OR FLOWERS BY WIRE SERVICES MORE PEOPLE ARE USING EIGHT HUNDRED NUMBERS FLORAL CATALOGS THAT PROMISE OVERNIGHT DELIVERY AND EVEN PERSONAL COMPUTER BASED ORDERING SERVICES CALLING A SINGLE EIGHT HUNDRED NUMBER TO ORDER FLOWERS CAN BE CONVENIENT BUT SOME PEOPLE WANT TO SEE WHAT THEY ARE PAYING FOR SHOPPERS USING THE CALYX AND COROLLA CATALOG OR THE COMPUTER ON LINE P. C. FLOWERS SERVICE CAN SEE COLOR PHOTOGRAPHS OR FOUR COLOR COMPUTER GENERATED DRAWINGS OF WHAT THEY PAY FOR INSTEAD OF RELYING SOLELY ON THE IMAGINATION OF SOME FAR OFF FLORIST SENDING FLOWERS WAS ONCE A STRAIGHT FORWARD BUSINESS AND FLORISTS' TRANSWORLD DELIVERY ASSOCIATION THE LARGEST WIRE TRANSFER SERVICE DOMINATED IT TRADITIONALLY A CALLER PLACED AN ORDER WITH A LOCAL FLORIST MORE THAN LIKELY AN FTD AFFILIATED SHOP THE FLORIST THEN SENT THE ORDER THROUGH THE FTD MERCURY PHONE NETWORK OR ANOTHER FLORAL TRANSFER SERVICE TO THE SHOP THAT WOULD MAKE IT UP AND DELIVER IT BUT FTD'S HOLD ON THE MARKET IS SLIPPING IN THE FISCAL YEAR ENDED JUNE THIRTIETH NINETEEN NINETY TWO FTD MEMBER FLORISTS DELIVERED MORE THAN NINETEEN POINT FIVE MILLION FTD FLOWERS BY WIRE ORDERS GENERATING SALES OF MORE THAN SIX HUNDRED SEVENTY SIX MILLION DOLLARS BUT IN THE CURRENT FISCAL YEAR FTD WIRE ORDERS ARE EXPECTED TO SLIP TO ABOUT EIGHTEEN MILLION AND SALES TO ABOUT SIX HUNDRED FIFTY MILLION DOLLARS FTD IS UP AGAINST COMPETITORS LIKE THREE YEAR OLD FLOWERS DIRECT BASED IN BOCA RATON FLORIDA WHICH LAST YEAR WENT FOR THE JUGULAR IN A T. V. AD CAMPAIGN QUOTE USUALLY WHEN YOU SEND FLOWERS OUT OF TOWN YOU GIVE YOUR ORDER TO SOMEBODY WHO TAKES A CUT THEN HE PASSES THE ORDER TO SOMEBODY ELSE WHO TAKES A CUT ALL WE CUT IS THE MIDDLEMAN THE VOICE OVER SAID THE FTD COMPLAINED TO THE NATIONAL ADVERTISING DIVISION OF THE COUNCIL OF BETTER BUSINESS BUREAUS THAT THE FLOWERS DIRECT ADS WERE MISLEADING IN SUGGESTING THAT FLOWERS DIRECT TAKES NO CUTS FLOWERS DIRECT SAYS IT IS THE FIRST NATIONAL SERVICE TO CONNECT CALLERS DIRECTLY TO FLORISTS WHO FILL THEIR ORDER CALLERS TO ITS EIGHT HUNDRED NUMBER PUNCH IN THE ZIP CODE TO WHICH THEY ARE SENDING FLOWERS AND THE CALL IS ROUTED TO A SELECTED FLORIST IN THAT AREA IN FACT FLOWERS DIRECT TAKES ITS CUT IN THE FORM OF A FEE AND PHONE CHARGES TOTALING ABOUT EIGHT DOLLARS PER ORDER PAID BY THE LOCAL FLORIST THE FLOWERS DIRECT CAMPAIGN ALSO CLAIMED THAT ITS CUSTOMERS WOULD GET A LOT MORE FLOWERS FOR YOUR MONEY AS TO THAT THE NATIONAL ADVERTISING REVIEW BOARD FOUND THAT UNLESS A SURVEY WAS DONE OF A VALID SAMPLE OF FLORISTS FILLING ORDERS UNDER THE DIFFERENT DELIVERY SERVICES IT IS IMPOSSIBLE TO SAY WHETHER ONE MECHANISM DELIVERS MORE FOR THE MONEY OR THAT ONE APPROACH IS CHEAPER THAN ANOTHER FLOWERS DIRECT DISCONTINUED THAT CAMPAIGN ITS MOST RECENT T. V. AD CAMPAIGN READY FOR VALENTINE'S DAY TAKES A SHOT AT SERVICES LIKE EIGHT HUNDRED FLOWERS AND FTD WHOSE ORDERS ARE FILLED BY FLORISTS THAT CALLERS NEVER TALK TO DIRECTLY SENDING FLOWERS ACROSS TOWN OR ACROSS COUNTRY CAN GET A LITTLE TRICKY SAY YOU WANT TO SEND SOMETHING SPECIAL QUOTE THE AD SAYS AS A VASE OF ROSES DISAPPEARS IN A PUFF OF SMOKE AND IS REPLACED BY A MUNDANE MUG FILLED WITH CARNATIONS AND BABY'S BREATH SHE COULD END UP WITH SOMETHING A LITTLE MORE ORDINARY THE T. V. SPOTS SAY FLOWERS DIRECT SAYS ITS SALES AND CALL VOLUME IN NINETEEN NINETY THREE GREW ABOUT SIXTY PERCENT FROM THE YEAR BEFORE TO ABOUT THREE MILLION DOLLARS IN SALES AND SEVEN HUNDRED THOUSAND CALLS THE COMPANY EXPECTS BIG GROWTH AGAIN THIS YEAR IN BOTH CALL VOLUME AND REVENUES BUT FLOWERS DIRECT IS STILL PUNY COMPARED WITH EIGHT HUNDRED FLOWERS THE EIGHT HUNDRED PHONE SERVICE KNOWN BEST BY ITS STUBBLE BEARDED OWNER JIM MCCANN WHO APPEARS OFTEN IN T. V. ADS. EIGHT HUNDRED FLOWERS OWNED BY MR. MCCANN'S TELEWAY INCORPORATED WAS A DALLAS TEXAS BUSINESS LOSING MORE THAN FOUR HUNDRED THOUSAND DOLLARS A MONTH WHEN HE BOUGHT IT IN NINETEEN EIGHTY SEVEN THIS YEAR EIGHT HUNDRED FLOWERS NOW BASED IN WESTBURY N. Y. AND ITS VARIOUS SISTER BUSINESSES SUCH AS EIGHT HUNDRED BASKET AND EIGHT HUNDRED GOODIES WILL HAVE SALES OF MORE THAN ONE HUNDRED MILLION DOLLARS THE COMPANY HAS GROWN BY ADVERTISING TO THE PRIME FLOWER BUYING GROUP WHITE COLLAR MEN BETWEEN TWENTY FIVE AND FORTY FIVE MR. MCCANN'S GREATEST ASSET IS THE SERVICE'S IMPOSSIBLE TO FORGET NAME NOW CONSIDERED THE LEADING EIGHT HUNDRED FLORAL SERVICE MR. MCCANN IS EXPANDING INTO RETAIL OUTLETS LAST YEAR TELEWAY ACQUIRED THE SAN ANTONIO BASED FLOWERS TO GO CHAIN WHICH IN A TEST WILL SOON CHANGE ITS STORES' NAMES TO EIGHT HUNDRED FLOWERS AND BECAME A MAJOR INVESTOR IN CONROY FLOWERS INCORPORATED THE WEST COAST'S LARGEST RETAIL FLOWER CHAIN FTD IS FIGHTING BACK THE NONPROFIT ASSOCIATION BASED IN SOUTHFIELD MICHIGAN BELATEDLY STARTED A FOR PROFIT COMPANY LAST YEAR THAT LAUNCHED ITS OWN NUMBER EIGHT HUNDRED SEND FTD BUT THE FTD UNIT CALLED DIRECT ACCESS RECEIVED ONLY TWENTY SEVEN THOUSAND CALLS AND REPORTED A LOSS OF ABOUT FIVE MILLION DOLLARS IN ITS FIRST YEAR WHICH ENDED LAST MONTH FTD SAYS IT EXPECTED LOSSES IN AT LEAST THE FIRST THREE YEARS FOR THIS VALENTINE'S DAY FTD'S T. V. SPOTS INCLUDE ANOTHER NEW SERVICE CALLED THE FLORIST FINDER WHICH HELPS CUSTOMERS LOCATE A LOCAL FTD FLORIST THROUGH A SINGLE CALL TO AN EIGHT HUNDRED NUMBER GENENTECH INCORPORATED BEGAN CONSTRUCTION OF A FIFTY EIGHT MILLION DOLLAR SCIENCE CENTER HERE THE COMPANY SAID THE THREE STORY CENTER WILL HOUSE ONE HUNDRED SEVENTY OF THE COMPANY'S TWO THOUSAND FIVE HUNDRED EMPLOYEES STEVEN ROTHMEIER WAS NAMED A DIRECTOR OF THIS MAKER OF AEROSPACE COMPONENTS EXPANDING THE BOARD'S SIZE TO TEN MEMBERS MR. ROTHMEIER FORTY EIGHT YEARS OLD IS CHAIRMAN OF PRIVATELY HELD GREAT NORTHERN CAPITAL CANADA'S NEW LIBERAL PARTY GOVERNMENT WHICH TOOK OFFICE IN NOVEMBER SAID THAT ON FEBRUARY TWENTY SECOND IT WILL INTRODUCE ITS FIRST BUDGET THE BUDGET WILL INCLUDE SPENDING AND REVENUE PROJECTIONS FOR THE FISCAL YEAR STARTING APRIL FIRST THE GOVERNMENT SAID THE BUDGET MAY ALSO INCLUDE TAX CHANGES THAT WOULD TAKE EFFECT IMMEDIATELY SUBJECT TO EVENTUAL APPROVAL BY PARLIAMENT AIDED BY STRONG MARKETING AND EXPANDED DISTRIBUTION SEGA OF AMERICA INCORPORATED CAPTURED NEARLY TWO THIRDS OF THE MOST CRUCIAL SEGMENT OF THE U. S. MARKET FOR VIDEO GAME PLAYERS DURING THE CHRISTMAS SEASON AS THE SHARE OF ONCE DOMINANT NINTENDO OF AMERICA INCORPORATED ACCELERATED ITS SLIDE A STUDY BY N. P. D. GROUP INCORPORATED'S TOY RETAIL SALES TRACKING SERVICE SHOWED THAT THE BIG CHRISTMAS GAIN FOR SEGA BOOSTED THE REDWOOD CITY CALIFORNIA COMPANY TO A FIFTY SEVEN PERCENT SHARE OF SIXTEEN BIT GAME PLAYER SALES LAST YEAR COMPARED WITH A FORTY THREE PERCENT SHARE FOR REDMOND WASHINGTON BASED NINTENDO THE COMPANIES ARE UNITS OF JAPAN'S SEGA ENTERPRISES LIMITED AND NINTENDO COMPANY RESPECTIVELY IN BOTH NOVEMBER AND DECEMBER THE RESEARCH FIRM FOUND SEGA EARNED A SIXTY THREE PERCENT SHARE OF THE SIXTEEN BIT GAME PLAYER MARKET COMPARED WITH THIRTY SEVEN PERCENT FOR NINTENDO THE NUMBERS RELEASED BY SEGA AND CONFIRMED BY N. P. D. OFFICIALS WHO COLLECTED SAMPLE DATA FROM MAJOR RETAILERS SEEM TO VALIDATE SEGA'S CLAIMS THAT IT IS ON THE VERGE OF WRESTING CONTROL OF AMERICA'S OVERALL SIX BILLION DOLLAR VIDEO GAME INDUSTRY FROM NINTENDO WHICH AS RECENTLY AS THREE YEARS AGO HELD A VIRTUAL MONOPOLY OVER THE MARKET QUOTE CLEARLY SEGA HAS MADE SOME VERY BIG STRIDES COMING OUT OF NINETEEN NINETY THREE AND NINTENDO HAS STRUGGLED QUOTE SAID BILL LUCAS PRESIDENT OF THE SYNDICATED SERVICES DIVISION FOR N. P. D. A PORT WASHINGTON N. Y. MARKET RESEARCH FIRM WHETHER THE TREND WILL CONTINUE IS ANYONE'S GUESS N. P. D. DIDN'T GIVE A DOLLAR ESTIMATE FOR TOTAL SALES BUT MR. LUCAS SAID NINTENDO APPEARED TO HAVE LED SEGA SOMEWHAT IN OVERALL U. S. SALES BY VIRTUE OF ITS LEAD IN SALES OF HAND HELD PLAYERS AND THAT IT MAINTAINED VIRTUALLY SOLE CONTROL OF THE DIMINISHING MARKET FOR OLD EIGHT BIT GAME PLAYERS IN WHICH SEGA DOESN'T COMPETE BUT NINTENDO MAY BE IN DANGER OF LOSING EVEN ITS OVERALL SALES EDGE TO SEGA THE RESEARCH FIRM OF GERARD KLAUER MATTISON AND COMPANY RECENTLY ESTIMATED NINTENDO'S NINETEEN NINETY THREE U. S. SALES WOULD SLIGHTLY EXCEED THREE BILLION DOLLARS WITH SEGA AT ABOUT TWO POINT FIVE BILLION DOLLARS FOR THIS YEAR GERARD KLAUER PREDICTED SEGA WOULD SURGE TO MORE THAN THREE BILLION DOLLARS IN SALES AND NINTENDO WOULD SLIP BELOW THREE BILLION DOLLARS NINTENDO IS STILL A POWERHOUSE BUT SEGA HAS ENCROACHED ON THEIR TERRITORY SAID STEVE ESKENAZI PRINCIPAL IN ALEXANDER BROWN AND SONS IN SAN FRANCISCO NINTENDO HAS LOST GROUND ANALYSTS SAY BECAUSE IT REACTED TOO SLOWLY WHEN SEGA CAME OUT WITH ITS MORE POWERFUL SIXTEEN BIT GENESIS PLAYER TO COMPETE AGAINST THE EIGHT BIT NINTENDO ENTERTAINMENT SYSTEM ABOUT THREE YEARS AGO BY THE TIME NINTENDO GOT ITS SIXTEEN BIT SUPER NINTENDO ENTERTAINMENT SYSTEM TO MARKET ABOUT EIGHTEEN MONTHS LATER GENESIS SALES ALREADY WERE SNOWBALLING NINTENDO STILL MANAGED TO EDGE OUT GENESIS SALES BECAUSE IT DISTRIBUTED IN MORE RETAIL STORES HOWEVER ANALYSTS SAY THE DISTRIBUTION ADVANTAGE ALL BUT DISAPPEARED LAST JULY WHEN KMART AND WAL MART AGREED TO CARRY SEGA PRODUCTS MR. ESKENAZI SAID SEGA SALES ALSO BEGAN TO SOAR AFTER IT EXECUTED A SLICK ADVERTISING CAMPAIGN AIMED AT TEENAGERS AND YOUNG ADULTS THEY SEEM TO BE RIGHT NOW THE HIPPER COOLER SYSTEM HE SAID TOM KALINSKE SEGA OF AMERICA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AGREED THAT MARKETING WAS IMPORTANT SAYING WE ARE OBVIOUSLY PRETTY AGGRESSIVE MARKETEERS AND WE HAVE DONE A BETTER JOB OF PROMOTING OUR PRODUCTS THAN THE COMPETITION NINTENDO OFFICIALS WERE NOT IMMEDIATELY AVAILABLE FOR COMMENT BUT THEY HAVE CONCEDED IN RECENT INTERVIEWS THAT THE COMPETITION IN THE SIXTEEN BIT MARKET HAS BEEN TOUGH THEY ALSO HAVE ATTRIBUTED SEGA'S SALES GAINS TO THAT COMPANY'S WILLINGNESS TO MARKET MORE VIOLENTLY EXPLICIT GAMES ON GENESIS SUCH AS THE UNCENSORED VERSION OF ACCLAIM ENTERTAINMENT INCORPORATED'S MORTAL KOMBAT NINTENDO HOPING TO APPEASE PARENTS RELEASED A NONVIOLENT VERSION OF THAT GAME BUT ANALYSTS SAY THE SEGA VERSION FAR OUTSOLD NINTENDO'S NINTENDO IS BANKING HEAVILY ON A TURNAROUND WITH ITS POWERFULLY UPGRADED NEW SIXTY FOUR BIT SYSTEM CODE NAMED PROJECT REALITY THAT IS BEING DEVELOPED WITH TECHNOLOGY FROM SILICON GRAPHICS INCORPORATED MOUNTAINVIEW CALIFORNIA PROJECT REALITY IS TO REACH ARCADES THIS FALL WITH WORLD WIDE LAUNCH TO HOMES NEXT YEAR SEGA WILL MEET THIS OFFENSIVE WITH A MACHINE CALLED SATURN WHICH IS BEING DEVELOPED WITH HITACHI LIMITED AND YAMAHA CORPORATION AND ACCORDING TO SEGA OFFICIALS WILL BE POWERED BY QUOTE MORE THAN ONE QUOTE THIRTY TWO BIT MICROPROCESSOR SATURN IS TO BE INTRODUCED IN JAPAN THIS FALL WITH ANALYSTS EXPECTING U. S. DISTRIBUTION WITHIN SIX MONTHS THEREAFTER ROBERT WAYMAN WAS NAMED A DIRECTOR OF THIS TRANSPORTATION CONCERN INCREASING THE BOARD'S SIZE TO THIRTEEN MEMBERS MR. WAYMAN FORTY EIGHT YEARS OLD IS CHIEF FINANCIAL OFFICER OF HEWLETT PACKARD COMPANY FORT WORTH TEXAS AMERICAN AIRLINES WILL LAUNCH ITS FIRST NONSMOKING TRANS ATLANTIC FLIGHT MAY FIRST OTHER U. S. CARRIERS HAVE RECENTLY ANNOUNCED SMOKING BANS IN FIRST CLASS CABINS ON INTERNATIONAL FLIGHTS BUT AMERICAN A UNIT OF A. M. R. CORPORATION APPEARS TO BE THE FIRST DOMESTIC CARRIER TO BANISH CIGARETTES COMPLETELY ON AN INTERNATIONAL FLIGHT THE POLICY WILL TAKE EFFECT ON AMERICAN'S NEW YORK TO LONDON SERVICE SHOSHANA B. TANCER WAS ELECTED A DIRECTOR OF THIS COMMERCIAL FINANCIAL SERVICES CONCERN MS. TANCER FIFTY EIGHT YEARS OLD IS A PROFESSOR OF INTERNATIONAL STUDIES AT THE AMERICAN GRADUATE SCHOOL OF INTERNATIONAL MANAGEMENT GLENDALE ARIZONA SHE FILLS A VACANCY LEFT BY THE RESIGNATION OF PHILIP S. PELANEK FIFTY LAST YEAR WESTERN COMPANY OF NORTH AMERICA SAID IT COMPLETED THE PURCHASE OF A UNIT OF SIMON ENGINEERING P. L. C. OF BRITAIN FOR TWENTY MILLION DOLLARS WESTERN COMPANY AN OIL FIELD SERVICE COMPANY SAID ITS ACQUISITION OF UNICHEM INTERNATIONAL INCORPORATED WAS RETROACTIVE TO JANUARY FIRST UNICHEM BASED IN THE WOODLANDS TEXAS PROVIDES SPECIALTY CHEMICALS TO THE OIL AND PETROCHEMICAL INDUSTRIES S. H. L. SYSTEMHOUSE INCORPORATED SAID IT COMPLETED THE ACQUISITION OF THE ASSETS AND BUSINESS OF NETG TRAINING GROUP LIMITED TORONTO TERMS WEREN'T DISCLOSED S. H. L. ALSO SAID IT SIGNED A LONG TERM DISTRIBUTION AGREEMENT FOR CANADA WITH NATIONAL EDUCATION TRAINING GROUP INCORPORATED NETG PROVIDES MEDIA BASED EDUCATION MATERIALS TO CORPORATE INDUSTRIAL AND GOVERNMENT CUSTOMERS WITH THE BABY BELLS PUSHING FOR LOOSER REGULATION BY CLAIMING THAT COMPETITION IN THE LOCAL TELEPHONE MARKET IS INTENSIFYING A NEW REPORT SUGGESTS THAT JUST THE OPPOSITE IS TRUE A DECADE AFTER THE BREAKUP OF THE OLD BELL SYSTEM THE SEVEN REGIONAL TELEPHONE COMPANIES STILL HANDLE MORE THAN NINETY FIVE PERCENT OF TELEPHONE CALLS IN THE U. S. AND THEIR LOCAL MONOPOLIES WILL LIKELY AVOID A SERIOUS CHALLENGE FOR AT LEAST ANOTHER DECADE THE STUDY ASSERTS THE REPORT WAS SPONSORED BY AMERICAN TELEPHONE AND TELEGRAPH COMPANY M. C. I. COMMUNICATIONS CORPORATION AND A LONG DISTANCE INDUSTRY TRADE GROUP IT IS SLATED FOR RELEASE THIS WEEK IT WILL SERVE AS AMMUNITION IN THEIR BATTLE TO BLUNT THE BELLS' EFFORT TO GAIN ENTRY INTO THE SIXTY BILLION DOLLAR LONG DISTANCE BUSINESS THE BABY BELLS WHICH WERE GRANTED MONOPOLY POWER OVER THEIR RESPECTIVE SERVICE REGIONS WHEN THEY WERE SPUN OFF IN THE BREAKUP OF A. T. AND T. A DECADE AGO WERE BANNED FROM LONG DISTANCE AND EQUIPMENT MANUFACTURING NOW THEY CONTEND THEY DESERVE ENTRY BECAUSE CONDITIONS HAVE CHANGED QUOTE COMPETITION IS A REALITY QUOTE PHIL QUIGLEY PRESIDENT OF PACIFIC BELL PROCLAIMED IN A PRESS RELEASE LAST WEEK BUT THE REPORT SHOWS THAT DESPITE TRYING FOR THE PAST DECADE NEW RIVALS HAVE MADE SCANT INROADS INTO THE BABY BELLS' TURF INDEED THE COMBINED REVENUES OF BELL RIVALS IN THE LUCRATIVE MARKET FOR ACCESS TO DEDICATED LINES AMOUNT TO LESS THAN ONE PERCENT OF THE BABY BELLS' TAKE THE REPORT STATES THE SEVEN BELLS GENERATE ABOUT TWENTY SIX BILLION DOLLARS A YEAR IN SO CALLED ACCESS FEES FOR CONNECTING CUSTOMERS TO LONG DISTANCE CALLS GIVING THEM A NINETY NINE POINT TWO PERCENT SHARE OF THE MARKET COMPETITORS TAKE IN ABOUT TWO HUNDRED NINE MILLION DOLLARS ANNUALLY FOR A ZERO POINT EIGHT PERCENT STAKE EVEN IF CABLE SYSTEMS THE BELL COMPANIES' MUCH CITED NEW THREAT WERE TO BEGIN SELLING LOCAL TELEPHONE SERVICES FULLY NINETY NINE PERCENT OF ALL CALLS WOULD HAVE TO GO OVER THE BABY BELL NETWORK THE REPORT STATES THE ONLY CALLS THAT COULD BYPASS BELL LINES WOULD BE THOSE MADE BY ONE CABLE SUBSCRIBER TO ANOTHER ON THE SAME SYSTEM THE THREE HUNDRED PAGE STUDY WAS PUT TOGETHER BY ECONOMICS AND TECHNOLOGY INCORPORATED A RESEARCH GROUP IN BOSTON AND HATFIELD ASSOCIATES INCORPORATED A CONSULTING FIRM IN DENVER MAYBE IT'S JUST COLD WEATHER THAT'S FROZEN CONSUMER SPENDING AND PUT A SLIGHT CHILL ON THE MOODS OF AMERICANS AFTER NINE MONTHS OF SOLID GAINS CONSUMER SPENDING FELL ZERO POINT FIVE PERCENT IN JANUARY TO ONE HUNDRED EIGHTY POINT NINE SIX BILLION DOLLARS THE COMMERCE DEPARTMENT SAID JANUARY WAS ALSO ONE OF THE COLDEST ON RECORD AND MANY ANALYSTS POINT TO THAT AS THE MAIN REASON SPENDING DECLINED CONSUMER CONFIDENCE ALSO SEEMS TO HAVE DIPPED ALONG WITH THE TEMPERATURE THE UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT INDEX FELL TO NINETY TWO POINT NINE IN EARLY FEBRUARY FROM NINETY FOUR POINT THREE IN JANUARY THE SMALL DECLINE COMES AFTER A STRING OF INCREASES MATCHED BY RISES IN THE CONFERENCE BOARD'S CONSUMER CONFIDENCE MEASURE SEPARATELY THE LABOR DEPARTMENT SAID PRODUCER PRICES OF FINISHED GOODS CLIMBED A MODEST ZERO POINT TWO PERCENT IN JANUARY AFTER FALLING ZERO POINT ONE PERCENT IN DECEMBER THERE IS SOME UNCERTAINTY ABOUT THE QUOTE BAD WEATHER QUOTE THEORY CONCERNING SALES HOWEVER IN THE LAST QUARTER OF NINETEEN NINETY THREE THE ECONOMY GREW AT A FAST FIVE POINT NINE PERCENT ANNUAL RATE AN UNSUSTAINABLE CLIP BY MOST ACCOUNTS THE CONSENSUS IS THAT GROWTH WILL SLOW IN THE FIRST PART OF THIS YEAR WHICH IT HAS SO FAR ALONG WITH FALLING RETAIL SALES JOBS GREW BY ONLY SIXTY TWO THOUSAND LAST MONTH AFTER AVERAGING CLOSE TO TWO HUNDRED THOUSAND IN THE PREVIOUS FIVE MONTHS IT IS DIFFICULT TO SEPARATE HOW MUCH OF THIS SLOWDOWN IS A WEATHER THING AND HOW MUCH IS AN UNSUSTAINABILITY THING IT'S HARD TO TELL FOR SURE SAID LAURA TYSON HEAD OF THE PRESIDENT CLINTON'S COUNCIL OF ECONOMIC ADVISERS ONE BRIGHT SPOT IS THAT THE MANUFACTURING SECTOR SEEMS UNSCATHED BY THE FRIGID TEMPERATURES A SURVEY OF PURCHASING MANAGERS SUGGESTED THAT MANUFACTURING ACTIVITY EXPANDED IN JANUARY AND DESPITE SMALL JOB GAINS OVERALL LAST MONTH FACTORY JOBS GREW AT A RESPECTABLE PACE ANALYSTS SAY THAT'S A SURE SIGN THE ECONOMY HASN'T LOST ITS FOOTING THE WEATHER AND THE CALIFORNIA EARTHQUAKE WILL DEPRESS FIRST QUARTER ECONOMIC GROWTH THOUGH IT IS BEGINNING TO LOOK LIKE WE WILL NOT MAKE THIS GROWTH UP BECAUSE TIME IS RUNNING OUT SAID MS. TYSON AS SNOW AND FREEZING RAIN CONTINUED TO FALL IN THE NATION'S CAPITAL FRIDAY C. J. LAWRENCE CHIEF ECONOMIST ED YARDENI SAYS THAT IF BAD WEATHER PERSISTS CONSUMPTION COULD ACTUALLY DECLINE IN THE FIRST QUARTER MUCH OF THE DROP IN RETAIL SALES LAST MONTH CAME IN AREAS WHERE WEATHER CAN PLAY A BIG PART BUILDING MATERIALS HARDWARE AUTOS AND FURNITURE WERE HARDEST HIT GASOLINE SALES AND DRUGSTORE SALES POSTED THE LARGEST GAINS ANALYSTS POINTED OUT THAT THE RECENT UPWARD REVISIONS IN RETAIL SALES GROWTH TO ONE POINT TWO PERCENT IN DECEMBER AND ZERO POINT SEVEN PERCENT IN NOVEMBER SUGGEST UNDERLYING CONSUMER STRENGTH JOSEPH LIRO CHIEF ECONOMIST OF S. G. WARBURG IN NEW YORK SAID AT LEAST SOME OF THE SALES LOST IN JANUARY SHOULD BE RECAPTURED IN FEBRUARY AND MARCH WHOLESALE PRICES IN JANUARY WERE MODERATE BUT THE ZERO POINT TWO PERCENT RISE WAS STILL THE FASTEST PACE SINCE SEPTEMBER EXCLUDING THE VOLATILE FOOD AND ENERGY SECTORS WHOLESALE PRICES ROSE A STRONGER ZERO POINT FOUR PERCENT THE FASTEST CLIP IN A YEAR MUCH OF THE RISE WAS CONCENTRATED IN COMPUTERS AND TOBACCO IN RECENT YEARS INFLATION HAS TENDED TO BLIP UP AT THE START OF THE YEAR ONLY TO LEVEL OFF LATER ON THE LABOR DEPARTMENT HAS MADE AN EFFORT TO SMOOTH AWAY THAT STATISTICAL PROBLEM THIS YEAR BUT STEPHEN ROACH SENIOR ECONOMIST AT MORGAN STANLEY SAID THE LARGE RISE RELATIVE TO RECENT MONTHS IN PRODUCER PRICES MINUS FOOD AND ENERGY SUGGESTS THE PROCESS HASN'T COMPLETELY WORKED PRICES OF INTERMEDIATE GOODS ROSE ZERO POINT TWO PERCENT AFTER FALLING IN DECEMBER CRUDE PRICES JUMPED ONE POINT THREE PERCENT AFTER FALLING TWO POINT FOUR PERCENT THE MONTH BEFORE PRIVATE ECONOMISTS AND THE ADMINISTRATION BELIEVE PRICES WILL REMAIN WELL BEHAVED THIS YEAR EVEN AS THE ECONOMY BECOMES MORE HEALTHY THE CONSUMER PRICE INDEX IS SCHEDULED TO BE RELEASED THURSDAY ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES NINETEEN EIGHTY TWO EQUALS ONE HUNDRED FOR JANUARY BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM JANUARY NINETEEN NINETY THREE THE INTERNAL REVENUE SERVICE'S AUDITS OF HUNDREDS OF MUNICIPAL BOND ISSUES MAY INCLUDE REVIEWS OF THE RELEVANT BOOKS AND RECORDS OF UNDERWRITERS AND BOND LAWYERS QUOTE THE AUDIT TRAIL MAY LEAD TO THESE PLACES QUOTE SAID MARCUS OWENS A SENIOR I. R. S. OFFICIAL INVOLVED IN PLANNING THE MUNI AUDITS HE NOTED THAT BOND ISSUANCE COSTS CHIEFLY FEES PAID TO UNDERWRITERS AND LAWYERS ARE LIMITED BY LAW ON SOME TYPES OF MUNICIPAL BOND ISSUES THE I. R. S. PLANS TO CONDUCT A HOST OF MUNICIPAL BOND AUDITS TO GET A STATISTICALLY VALID INDICATION OF THE STATE OF COMPLIANCE WITH TAX RULES GOVERNING MUNIS THE I. R. S. EXPECTS AS MANY AS TWO HUNDRED RANDOMLY SELECTED AUDITS IN SEVERAL DIFFERENT CATEGORIES OF BONDS THESE AUDITS AREN'T EXPECTED TO START UNTIL NEXT FISCAL YEAR THE I. R. S. MUNI AUDITS IN SOME CASES ALSO ARE EXPECTED TO INCLUDE A REVIEW OF HOW BOND PROCEEDS ARE USED THIS IS ONE OF THE AREAS WHERE OUR CONCERNS AND THOSE OF THE SECURITIES AND EXCHANGE COMMISSION ARE LIKELY TO OVERLAP MR. OWENS SAID IN AN INTERVIEW THE I. R. S. AND S. E. C. HAVE BEGUN TO COORDINATE THEIR MUNICIPAL BOND ENFORCEMENT EFFORTS S. E. C. CHAIRMAN ARTHUR LEVITT RECENTLY PLEDGED TO ENFORCE THE SECURITIES LAWS VIGOROUSLY WITH RESPECT TO MUNIS AND CITED AMONG THE AREAS IN THE S. E. C.'S SIGHTS ALLEGATIONS ABOUT OFFERINGS THAT LACK ECONOMIC MERIT OR THAT MISREPRESENT THE TAX STATUS OF THE BONDS SUCH ALLEGATIONS ALSO ARE OF INTEREST TO THE I. R. S. SOME MARKET PARTICIPANTS FEAR THAT IF THE I. R. S. FINDS THAT A SIGNIFICANT AMOUNT OF BOND PROCEEDS ARE UNACCOUNTED FOR OR WEREN'T USED FOR THEIR INTENDED PURPOSES IT COULD CREATE PROBLEMS FOR OTHER MUNI BONDS THE I. R. S. ALSO WILL BE LOOKING AT A BATCH OF SPECIFIC BOND ISSUES THAT HAVE BEEN IDENTIFIED AS HAVING POSSIBLE TAX PROBLEMS MR. OWENS SAID THESE CASES APPEAR TO INVOLVE BONDS WHERE PEOPLE GOT A LITTLE TOO CLEVER FOR THEIR OWN GOOD AND WHERE PERTINENT REGULATIONS TYPICALLY RULES BARRING ARBITRAGE MAY HAVE BEEN TOO COMPLEX FOR BOND ISSUERS TO COMPREHEND ARBITRAGE IS INVOLVED WHEN BOND PROCEEDS ARE INVESTED IN HIGHER YIELDING INSTRUMENTS AND HAS BEEN A LEADING I. R. S. CONCERN OVER THE YEARS EVEN AFTER THE NINETEEN EIGHTY SIX TAX REFORM ACT REQUIRED THAT ARBITRAGE PROFITS BE REBATED TO THE TREASURY TO DATE MORE THAN EIGHT HUNDRED MILLION DOLLARS IN ARBITRAGE HAS BEEN PAID OVER TO THE FEDERAL GOVERNMENT BY MUNICIPAL BOND ISSUERS APPAREL MAKER BERNARD CHAUS INCORPORATED REPORTED A EIGHT POINT FIVE MILLION DOLLAR LOSS OR FORTY SIX CENTS A SHARE FOR THE FISCAL SECOND QUARTER WHICH IT ATTRIBUTED TO SLUGGISH SALES AND PRICING PRESSURE JOSEPHINE CHAUS CHAIRWOMAN AND CHIEF EXECUTIVE SAID APPAREL QUOTE DID NOT PARTICIPATE MATERIALLY IN THE OVERALL INCREASE IN SALES REPORTED BY RETAILERS QUOTE IN THE QUARTER A YEAR EARLIER THE COMPANY HAD NET INCOME OF ONE HUNDRED TWENTY SIX THOUSAND DOLLARS OR ONE CENT A SHARE SHE SAID THE COMPANY'S EFFORTS TO REDUCE INVENTORY INCREASED THE PROPORTION OF SALES MADE BELOW STANDARD SELLING PRICES HOWEVER THE PRICING STRATEGY DID REDUCE OUR INVENTORY TO LESS THAN THE SAME QUARTER LAST YEAR AND THEREBY LESSEN THE POTENTIAL IMPACT ON FUTURE QUARTERS SALES FOR THE QUARTER ENDED DECEMBER THIRTY FIRST FELL EIGHTEEN PERCENT TO FIFTY POINT SEVEN MILLION DOLLARS FROM SIXTY ONE POINT SIX MILLION DOLLARS FOR THE SIX MONTHS THE COMPANY HAD A NET LOSS OF TEN POINT TWO MILLION DOLLARS OR FIFTY SIX CENTS A SHARE COMPARED WITH YEAR EARLIER NET OF TWO POINT FIVE MILLION DOLLARS OR THIRTEEN CENTS A SHARE INCLUDING A TAX BENEFIT OF EIGHT HUNDRED SIXTY SIX THOUSAND DOLLARS SALES DECLINED TO ONE HUNDRED TWENTY POINT THREE MILLION DOLLARS FROM ONE HUNDRED TWENTY FIVE POINT EIGHT MILLION DOLLARS THE COMPANY SAID IT IS MOVING TO FURTHER REDUCE OPERATING EXPENSES REDUCING THE STYLES IN THE LINE MAINTAINING LOWER PRICES REDUCING THE QUANTITY OF MERCHANDISE MANUFACTURERED AND GENERALLY LOWERING THE LEVEL OF BUSINESS REQUIRED TO BREAK EVEN THE COMPANY SAID IT IS NEGOTIATING WITH BANK LENDERS TO MODIFY BORROWING AGREEMENTS AND EXPECTS NEGOTIATIONS WILL BE SUCCESSFUL IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CHAUS SHARES CLOSED UNCHANGED AT TWO DOLLARS A SHARE WITH INTERCHANGEABLE PARTS IS BOUND TO BE A WHOPPER EASTMAN KODAK COMPANY PICKED FORMER INTERNATIONAL BUSINESS MACHINES CORPORATION FINANCIAL EXECUTIVE HARRY L. KAVETAS AS ITS CHIEF FINANCIAL OFFICER A POSITION VACANT SINCE LAST APRIL THE APPOINTMENT IS CHAIRMAN GEORGE FISHER'S FIRST MAJOR MANAGEMENT MOVE SINCE HE TOOK OVER THE HELM OF THE TROUBLED PHOTOGRAPHIC AND HEALTH COMPANY IN DECEMBER THE FIFTY SIX YEAR OLD MR. KAVETAS WHO IS KNOWN AS A STEADY DECISION MAKER LAST SERVED AS PRESIDENT AND CHIEF EXECUTIVE OF I. B. M.'S CREDIT CORPORATION UNIT DURING HIS TENURE THE DIVISION'S PROFIT ROSE TO TWO HUNDRED TWENTY MILLION DOLLARS FROM ONE HUNDRED EIGHTEEN MILLION DOLLARS HE RETIRED LATE LAST YEAR AFTER THIRTY TWO YEARS WITH I. B. M. SOME INVESTORS HAD HOPED KODAK WOULD CHOOSE AN AGGRESSIVE COST CUTTER TO SHAKE UP THE ROCHESTER N. Y. COMPANY WHICH HAS BEEN BURDENED BY INCREASED COMPETITION AND SLOWER GROWTH IN ITS CORE FILM BUSINESS BUT QUOTE MR. FISHER WANTED A TOTAL C. F. O. NOT JUST A COST CUTTER QUOTE SAID TED JADICK MANAGING DIRECTOR OF HEIDRICK AND STRUGGLES INCORPORATED AN EXECUTIVE SEARCH FIRM WHICH HELPED RECRUIT MR. KAVETAS HE WANTED A BUSINESS PARTNER ALMOST AND HE WANTED THE CHEMISTRY TO BE RIGHT IT'S EXPECTED THAT MR. KAVETAS'S VISION AND OPERATING STYLE WILL FIT CLOSELY WITH THAT OF THE FIFTY THREE YEAR OLD MR. FISHER THAT WOULD BE A SHARP DEPARTURE FROM THE CLASHING STYLES OF FORMER KODAK CHIEF EXECUTIVE KAY WHITMORE AND CHRISTOPHER J. STEFFEN WHO QUIT AS KODAK'S FINANCIAL BOSS AFTER ONLY THREE MONTHS ON THE JOB MR. STEFFEN WANTED TO CUT COSTS AND SELL ASSETS FASTER THAN MR. WHITMORE DID I'M A DISCIPLINED ANALYTICAL AND ORDERLY PERSON MR. KAVETAS SAID FRIDAY AFTER THE BOARD APPROVED HIS APPOINTMENT I WANT TO CREATE AN ENVIRONMENT AT KODAK WHERE THERE IS SOME CONSISTENCY OF PURPOSE WHERE THERE IS NOT THE PROGRAM DU JOUR OR PROGRAM PER QUARTER MR. KAVETAS WHO LACKS A BACKGROUND IN KODAK'S TYPE OF MANUFACTURING SAID HIS FINANCIAL SKILLS AND EXPERIENCE AS A BOSS WILL HELP KODAK REALIZE ITS FULL POTENTIAL HE AGREED THAT KODAK NEEDED MORE REVENUE GROWTH THERE ARE ENORMOUS RESOURCES LOCKED UP AT KODAK HE ADDED BOB DJURDJEVIC PRESIDENT OF ANNEX RESEARCH A PHOENIX CONSULTING FIRM SAID MR. KAVETAS IS QUOTE FORCEFUL AND STANDS UP FOR WHAT HE BELIEVES RIGHT OR WRONG ADDED JACK KELLY AN ANALYST WITH GOLDMAN SACHS AND COMPANY THE CONSENSUS IS THAT MR. KAVETAS IS A SOLID CITIZEN WHAT KODAK REALLY NEEDS IS SOMEONE WITH A SOLID REPUTATION WHO WILL CHANGE THE WAY THE COMPANY IS GOING SEPARATELY KODAK NAMED MICHAEL P. MORLEY ITS FIFTY YEAR OLD DIRECTOR OF HUMAN RESOURCES AS A SENIOR VICE PRESIDENT ALEX P. WASILOV FORTY GENERAL MANAGER CONSUMER IMAGING U. S. AND CANADA WAS NAMED A VICE PRESIDENT CRANE COMPANY AGREED TO ACQUIRE ELDEC CORPORATION A DEFENSE AND AEROSPACE SUBCONTRACTOR FOR ABOUT SEVENTY FOUR MILLION DOLLARS UNDER THEIR DEFINITIVE AGREEMENT CRANE AGREED TO PURCHASE ABOUT FIFTY ONE PERCENT OF ELDEC FROM CERTAIN SHAREHOLDERS AT THIRTEEN DOLLARS A SHARE AND WILL MAKE A TENDER OFFER AT THAT PRICE FOR THE REMAINING SHARES IN NASDAQ STOCK MARKET TRADING ELDEC SHARES FINISHED UP TWO POINT SIX TWO FIVE DOLLARS OR TWENTY SIX PERCENT TO TWELVE DOLLARS AND SEVENTY FIVE CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CRANE FELL FIFTY CENTS TO TWENTY SIX DOLLARS IN JANUARY ELDEC HAD SAID IT HAD BEEN APPROACHED BY SEVERAL COMPANIES INTERESTED IN PURCHASING THE LYNNWOOD WASHINGTON COMPANY FOR THE NINE MONTHS ENDING DECEMBER TWENTY SIXTH ELDEC HAD NET INCOME OF FIVE HUNDRED FIFTY SEVEN THOUSAND DOLLARS OR TEN CENTS A SHARE ON SALES OF SEVENTY THREE POINT THREE MILLION DOLLARS ELDEC SAID NET INCOME INCLUDED A FOUR HUNDRED THOUSAND DOLLAR RESERVE AGAINST UNPAID ACCOUNTS RECEIVABLE ELDEC HAS ABOUT FIVE POINT SEVEN MILLION SHARES OUTSTANDING ITS BOARD HAS APPROVED THE OFFER CRANE MAKES A VARIETY OF ENGINEERED INDUSTRIAL PRODUCTS AND HAS A WHOLESALE DISTRIBUTION BUSINESS CALL IT QUOTE MR. MUSCLE MEETS CHURCH LADY QUOTE ALLEGATIONS THAT A SMALL NEW ENGLAND FISH PROCESSOR THINKS PEOPLE IN THEIR MID FORTIES ARE TOO OLD TO WORK EFFICIENTLY HAS CREATED AN UNLIKELY ALLIANCE BETWEEN THE TEAMSTERS UNION AND CHURCH WOMEN UNITED AN ECUMENICAL GROUP OF CHRISTIAN WOMEN ACTIVE IN SOCIAL ISSUES LAST WEEK THE TWO GROUPS ORGANIZED PROTESTS OUTSIDE VARIOUS LONG JOHN SILVER'S RESTAURANTS NATIONWIDE THEY CHARGE THAT FRIONOR U. S. A. INCORPORATED A NEW BEDFORD MASSACHUSETTS FISH PROCESSOR AND LONG JOHN SILVER'S SUPPLIER WANTS TO REPLACE OLDER WORKERS MAINLY WOMEN WITH YOUNGER ONES ACCORDING TO THE TEAMSTERS AND CHURCH WOMEN THE VULNERABLE WORKERS COULD BE AS YOUNG AS THEIR MID FORTIES THE GROUPS SAY THE AVERAGE AGE OF FRIONOR'S FEMALE WORKERS WHO MAKE UP ABOUT SEVENTY FIVE PERCENT OF THE COMPANY'S ONE HUNDRED TEN PRODUCTION WORKERS IS ABOUT FORTY FIVE YEARS OLD THESE REALLY AREN'T OLDER WOMEN SAYS RON CARVER STRATEGIC CAMPAIGN DIRECTOR FOR THE WASHINGTON D. C. BASED TEAMSTERS BUT THEY'RE CLEARLY BEING DISCRIMINATED AGAINST BASED ON THE COSTLINESS THAT IS ASSOCIATED WITH THEIR EXPERIENCE FRIONOR A SUBSIDIARY OF FRIONOR AS A SMALL NORWEGIAN COMPANY THAT PACKAGES FISH PRODUCTS DISPUTES THE CHARGES THESE ARE USUAL TEAMSTER TACTICS SAYS CHARLES DILLON FRIONOR'S PRESIDENT THERE IS NOTHING IN OUR CONTRACT TALKS THAT EVEN TRIES TO NEGOTIATE DISCRIMINATORY PRACTICES TOWARD OLDER WORKERS BUT THE TEAMSTERS AND CHURCH WOMEN SAY TWO MAIN CHANGES THAT FRIONOR IS SEEKING IN ITS CURRENT LABOR CONTRACT WITH THE TEAMSTERS ARE AIMED AT SQUEEZING OLDER BETTER PAID WORKERS OFF THE PRODUCTION LINE THE FIRST WOULD REQUIRE WORKERS TO UNDERGO STRENGTH AND AGILITY TESTS THAT WOULD GIVE THE COMPANY THE RIGHT TO FORBID SOME WORKERS FROM PERFORMING CERTAIN TASKS ALONG THE PRODUCTION LINE WORK THERE INCLUDES SUCH JOBS AS CUTTING PARTIALLY FRYING PACKAGING AND BOXING FROZEN FISH THE SECOND CHANGE WOULD ALLOW THE COMPANY TO DECIDE WHICH PRODUCTION LINE TASK EACH WORKER CARRIES OUT IN THE PAST EMPLOYEES HAVE CHOSEN THEIR JOBS AT THE BEGINNING OF EACH WORKDAY BASED ON THEIR OWN PREFERENCES AND ABILITIES MR. DILLON SAYS THAT FRIONOR IS WILLING TO DROP THE COMPANY'S REQUESTS FOR AGILITY TESTING IF THE WORKERS ARE WILLING TO CONCEDE ON OTHER POINTS SUCH AS ACCEPTING LOWER WAGES AND HE SAYS THAT FRIONOR NEEDS TO ASSIGN PRODUCTION LINE TASKS BECAUSE WORKERS HAVE USUALLY CHOSEN THEIR ASSIGNMENTS BASED ON A DESIRE TO CHAT WITH CO WORKERS RATHER THAN TO WORK HARD MR. DILLON ADDS THAT FRIONOR IS TRYING TO WIN THE RIGHT TO PAY NEW WORKERS SEVEN DOLLARS AND FIFTY CENTS AN HOUR ONE DOLLAR AND FIFTY CENTS LESS AN HOUR THAN THE COMPANY'S CURRENT WORKERS EARN HE SAYS THE TWO TIERED WAGE SCALE IS DESIGNED TO REDUCE LABOR COSTS IN ANTICIPATION OF AUTOMATING THE PRODUCTION LINE IT IS THIS PROSPECT OF REDUCED LABOR COSTS SAY FRIONOR'S CRITICS THAT GIVES THE COMPANY THE INCENTIVE TO GET RID OF OLDER WORKERS WHO ALSO HAVE LONG VACATIONS AND MIGHT RAISE HEALTH CARE COSTS QUOTE I FIRMLY BELIEVE THAT THEY THINK THEY CAN GET YOUNGER PEOPLE IN THERE WHO CAN DO A BETTER JOB FOR LESS MONEY QUOTE SAYS MARGARET LYNCH A FORTY NINE YEAR OLD JANITOR WHO JOINED FRIONOR TWENTY TWO YEARS AGO I HELPED THEM BUILD UP TO WHERE THEY ARE TODAY THEY CAN'T JUST THROW ME OUT THE FATE OF WORKERS SUCH AS MS. LYNCH DROVE THE TEAMSTERS TO APPROACH CHURCH WOMEN LAST YEAR AND SUGGEST AN ALLIANCE CHURCH WOMEN AGREED AND ITS DIRECTOR PAT RUMER DECIDED TO WRITE FRIONOR'S CUSTOMERS TO ALERT THEM TO PROBLEMS THAT SHE BELIEVED THE PROCESSING PLANT HAD LAST NOVEMBER MS. RUMER WROTE LONG JOHN SILVER'S INCORPORATED A LEXINGTON KENTUCKY COMPANY THAT IS AN INTERNATIONAL OPERATOR AND FRANCHISER OF SEAFOOD RESTAURANTS IT IS ALSO FRIONOR'S BIGGEST CUSTOMER HER LETTER ALLEGED THAT FRIONOR WAS TRYING TO LAY OFF SENIOR WORKERS AND FIRE WORKERS WHO ARE SICK OR INJURED SHE ALSO MENTIONED THAT CHURCH WOMEN WAS VERY CONCERNED ABOUT THE CURRENT TREND OF EMPLOYERS TO DUMP OLDER WORKERS SO THAT YOUNGER LOWER PAID WORKERS MAY BE HIRED ALTHOUGH LONG JOHN SILVER'S NEVER REPLIED TO THE LETTER FRIONOR DID IN JANUARY IT FILED A FOUR MILLION DOLLAR LIBEL SUIT AGAINST CHURCH WOMEN IN THE U. S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK THE LAWSUIT ALLEGES THAT CHURCH WOMEN DEFAMED FRIONOR BY CRITICIZING ITS STANDING BUSINESS METHODS AND INTEGRITY AND UNFAIRLY CHARGING THE COMPANY WITH EXPLOITATIVE OR IMMORAL CONDUCT IN THE TREATMENT OF ITS WORKERS THE LAWSUIT STUNNED MS. RUMER QUOTE IT SEEMED FRANKLY LIKE AN ACT OF INTIMIDATION QUOTE SHE SAYS WE ASK PEOPLE ALL THE TIME ABOUT THEIR BUSINESS PRACTICES AND IT'S UNUSUAL FOR US TO GET THIS HOSTILE A RESPONSE NONETHELESS THE LAWSUIT PROMPTED MEMBERS OF CHURCH WOMEN AND THE TEAMSTERS TO PROTEST OUTSIDE SEVERAL LONG JOHN SILVER'S RESTAURANTS NATIONWIDE THURSDAY THEY HANDED OUT PAMPHLETS TO WORKERS AND CUSTOMERS INFORMING THEM OF THE LAWSUIT AND CONDITIONS AT THE FRIONOR PLANT ALTHOUGH LONG JOHN SILVER'S SAYS IT IS NOT TAKING ANY ACTION FRIONOR IS ON FRIDAY IT ISSUED A NEWS RELEASE SAYING IT WAS WITHDRAWING ITS SUIT AGAINST CHURCH WOMEN I REGRET CHURCH WOMEN UNITED WAS DRAWN INTO WHAT BECAME A PUBLIC DISPUTE MR. DILLON SAYS IN THE RELEASE FRIONOR REMAINS COMMITTED TO THE BELIEF THAT THROUGH COLLECTIVE BARGAINING WE WILL RESOLVE OUR DIFFERENCES WITH OUR UNION WORKERS FORD MOTOR COMPANY SAID IT IS RECALLING THIRTY ONE THOUSAND FIVE HUNDRED NINETEEN EIGHTY EIGHT MODEL RANGER TRUCKS EQUIPPED WITH TWO POINT OH LITER ENGINES BECAUSE OF AN EMISSIONS PROBLEM FORD SAID TESTS CONDUCTED BY IT AND THE ENVIRONMENTAL PROTECTION AGENCY INDICATE THAT SOME VEHICLES MAY EMIT OXIDES OF NITROGEN AT LEVELS THAT EXCEED U. S. AND CANADIAN STANDARDS ABOUT THREE THOUSAND EIGHT HUNDRED OF THESE VEHICLES ARE IN CANADA FORD SAID FORD DEALERS WILL MAKE SEVERAL MODIFICATIONS TO THE EMISSIONS SYSTEM INCLUDING REPLACING THE EXHAUST SYSTEM CATALYST AND THE EXHAUST GAS RECIRCULATION VALVE SEPARATELY MERCEDES BENZ OF NORTH AMERICA SAID IT IS RECALLING FIVE THOUSAND NINE HUNDRED FOUR HUNDRED E. VEHICLES TO FIX A PROBLEM WITH A COMPONENT INVOLVING THE AIR CONDITIONING UNIT MERCEDES BENZ A UNIT OF GERMANY'S DAIMLER BENZ A. G. SAID THE PROBLEM INVOLVES ALL NINETEEN NINETY TWO AND SOME NINETEEN NINETY THREE MODEL VEHICLES MERCEDES BENZ SAID A FAULTY HOSE IN THE SYSTEM COULD CAUSE A RELEASE OF FUEL VAPOR NEAR THE AUXILIARY COOLING FAN WHICH COULD LEAD TO A FIRE UNDER THE HOOD MERCEDES BENZ SAID THAT THERE HAVE BEEN NO REPORTS OF ACCIDENTS OR INJURIES RELATED TO THE PROBLEM THE COMPANY URGED OWNERS TO STOP USING THE AIR CONDITIONING SYSTEM UNTIL REPAIRS ARE MADE SAMUEL H. CHARLTON THE THIRD WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT GAS MARKETING AND SUPPLY MR. CHARLTON FORTY EIGHT YEARS OLD HAD BEEN VICE PRESIDENT GAS MARKETING J. V. C. SLASH VICTOR COMPANY OF JAPAN NAMED BARR B. POTTER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS LARGO ENTERTAINMENT UNIT THE MOVE COMPLETES A SHIFT IN FOCUS AT LARGO WHICH HAD BEEN PRIMARILY A MOVIE PRODUCTION COMPANY LARGO SAID IT NOW PLANS TO ACQUIRE FINANCE AND DISTRIBUTE MOVIES IN THE INTERNATIONAL MARKET MAJOR CHANGES AT THE COMPANY WERE FORESHADOWED LAST MONTH WHEN FIFTY SEVEN YEAR OLD PRODUCER LARRY GORDON FOR WHOM LARGO IS NAMED RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE MR. POTTER FORTY FIVE INITIALLY JOINED J. V. C. WHICH IS FIFTY ONE PERCENT OWNED BY MATSUSHITA ELECTRIC INDUSTRIAL COMPANY AS AN EXECUTIVE VICE PRESIDENT IN NINETEEN NINETY ONE HE BECAME PRESIDENT CHIEF OPERATING OFFICER AND A MEMBER OF THE BOARD OF DIRECTORS IN JULY NINETEEN NINETY TWO BOATMEN'S BANCSHARES INCORPORATED SAINT LOUIS SAID ITS BOATMEN'S TRUST UNIT AGREED IN PRINCIPLE TO ACQUIRE EAGLE MANAGEMENT AND TRUST COMPANY A HOUSTON BASED INVESTMENT ADVISORY FIRM CURRENTLY OWNED BY LONDON BASED GUINNESS PEAT GROUP P. L. C. TERMS WEREN'T DISCLOSED BOATMEN'S A BANK HOLDING COMPANY SAID EAGLE FOCUSES ON QUALIFIED RETIREMENT PLANS AND ENDOWMENTS FOR PENSION AND INSTITUTIONAL CLIENTS THE TEXAS COMPANY HAS ABOUT ONE POINT FOUR BILLION DOLLARS IN ASSETS UNDER MANAGEMENT BOATMEN'S TRUST WHICH HAS ABOUT THIRTY FOUR BILLION DOLLARS IN ASSETS UNDER MANAGEMENT SAID THE ACQUISITION IS AIMED AT BOOSTING ITS PRESENCE IN TEXAS AND WILL ENHANCE ITS EFFORTS TO QUOTE EXPLORE OPPORTUNITIES IN MEXICO AND LATIN AMERICA QUOTE TENNECO INCORPORATED SAID ONE OF ITS UNITS SOLD A TWENTY PERCENT STAKE IN A NATURAL GAS MARKETING AND PIPELINE SUBSIDIARY TO RUHRGAS A GERMAN NATURAL GAS CONCERN TERMS WEREN'T DISCLOSED THE UNIT TENNECO GAS SOLD RUHRGAS AN INTEREST IN ITS TENNECO ENERGY RESOURCES CORPORATION WITH ANNUAL REVENUE OF MORE THAN TWO BILLION DOLLARS TENNECO ENERGY RESOURCES INCLUDES OPERATIONS IN NATURAL GAS MARKETING GATHERING PROCESSING AND TRADING IN ADDITION TO TWO THOUSAND MILES OF PIPELINES MOSTLY IN TEXAS TENNECO GAS AND RUHRGAS ALSO AGREED TO JOINTLY PURSUE PROJECTS OF COMMON INTEREST IN THE EUROPEAN ENERGY MARKET AMERICAN CITY BUSINESS JOURNALS INCORPORATED IS QUOTE COMFORTABLE QUOTE WITH ANALYSTS' EARNINGS PROJECTIONS OF ONE DOLLAR AND FIVE CENTS A SHARE FOR NINETEEN NINETY THREE CHAIRMAN RAY SHAW SAID AMERICAN CITY WHICH OPERATES TWENTY SEVEN LOCAL BUSINESS JOURNALS AND OTHER SPECIALTY PUBLICATIONS REPORTED NET INCOME OF THREE POINT NINE MILLION DOLLARS OR SIXTY ONE CENTS A SHARE ON REVENUE OF SEVENTY POINT SEVEN MILLION DOLLARS IN NINETEEN NINETY TWO MR. SHAW SAID HE ALSO IS COMFORTABLE WITH ANALYSTS' REVENUE PROJECTIONS FOR THE YEAR OF ABOUT EIGHTY SIX MILLION DOLLARS THE YEAR END RESULTS EXPECTED TO BE RELEASED THIS WEEK WILL MARK THE COMPANY'S FOURTH CONSECUTIVE RECORD YEAR MR. SHAW SAID HE ATTRIBUTED THE IMPROVED RESULTS TO A BETTER ECONOMY STRONGER MANAGEMENT IMPROVED EDITORIAL PRODUCTS AND INCREASED RECOGNITION BY ADVERTISERS OF LOCAL BUSINESS JOURNALS MR. SHAW ALSO SAID HE IS COMFORTABLE WITH ANALYSTS' FOURTH QUARTER EARNINGS PROJECTIONS OF FIFTY FOUR CENTS A SHARE HE EXPECTS THE COMPANY TO REPORT A TWENTY PERCENT INCREASE IN FOURTH QUARTER REVENUE THE QUARTER AND YEAR END FIGURES INCLUDE RESULTS FROM WINSTON CUP SCENE A TABLOID NEWSPAPER TARGETED TO STOCK CAR FANS AND SAN JOSE BUSINESS JOURNAL BOTH OF WHICH THE COMPANY ACQUIRED LAST YEAR EXCLUDING THE NINETEEN NINETY THREE ACQUISITIONS FOURTH QUARTER REVENUE WOULD BE UP ELEVEN PERCENT HE SAID FOR THE FOURTH QUARTER OF NINETEEN NINETY TWO AMERICAN CITY EARNED TWO POINT THREE MILLION DOLLARS OR FIFTY EIGHT CENTS A SHARE ON REVENUE OF TWENTY POINT SIX MILLION DOLLARS EARNINGS IN THE NINETEEN NINETY THREE FOURTH QUARTER WERE AFFECTED BY A HIGHER TAX RATE AMERICAN CITY EXPECTS TO HAVE ABOUT EIGHT MILLION DOLLARS IN FREE CASH FLOW THIS YEAR AND IS ON THE LOOKOUT FOR ATTRACTIVE ACQUISITIONS MR. SHAW SAID THE COMPANY MIGHT BUY MORE BUSINESS JOURNALS IF THE MARKETS AND PRICES ARE RIGHT THE COMPANY ALSO HAS BEEN ENCOURAGED BY THE RECEPTION OF WINSTON CUP SCENE AND CHOP TALK A NATIONAL PUBLICATION DEVOTED TO THE ATLANTA BRAVES BASEBALL TEAM AND WOULD ENTERTAIN OTHER OPPORTUNITIES IN NICHE SPORTS PUBLISHING MR. SHAW SAID IN MARCH THE COMPANY WILL INTRODUCE BIZ A MAGAZINE TARGETED TO THE HEADS OF THE NATION'S FASTEST GROWING SMALL BUSINESSES IT WILL BE PUBLISHED BY A NEW COMPANY OWNED EQUALLY BY AMERICAN CITY AND DOW JONES AND COMPANY NEW YORK WHICH PUBLISHES THE DOMESTIC AND INTERNATIONAL EDITIONS OF THE WALL STREET JOURNAL BARRON'S MAGAZINE COMMUNITY NEWSPAPERS AND OTHER PUBLICATIONS NEWSWIRES AND ELECTRONIC INFORMATION SERVICES MR. SHAW SAID EARLY ADVERTISER RESPONSE HAS BEEN GOOD AMERICAN CITY IS LOOKING FOR ANOTHER YEAR OF OPERATING PERFORMANCE IMPROVEMENTS IN NINETEEN NINETY FOUR MR. SHAW SAID WE'RE STARTING OUT WITH A STRONG JANUARY ADVERTISING GENERALLY SEEMS TO BE FIRMING FOR THE NEWSPAPER INDUSTRY HE ADDED MOST PEOPLE I TALK TO IN THE INDUSTRY FEEL A LOT BETTER THIS TIME THIS YEAR THAN THEY DID THIS TIME LAST YEAR BLACKROCK FINANCIAL MANAGEMENT SAID IT IS CUTTING DIVIDENDS ON ALL OF ITS ELEVEN CLOSED END TAXABLE BOND FUNDS THE CUTS TAKE EFFECT WITH MARCH THIRTY FIRST DIVIDENDS ALL OF THE FUNDS INVEST IN MORTGAGE BACKED SECURITIES WHICH WERE HURT BY DECLINING INTEREST RATES IN THE PAST EIGHTEEN MONTHS LOWER RATES CAUSED A RUSH BY HOMEOWNERS TO REFINANCE THE MORTGAGES THAT BACK THE FUNDS' PORTFOLIOS WHICH IN TURN REDUCED THE FUNDS' INTEREST INCOME AND LED TO THE DIVIDEND CUTS BLACKROCK FINANCIAL SAID IN A STATEMENT QUOTE BECAUSE INTEREST RATES ARE SIGNIFICANTLY LOWER TODAY THAN THEY WERE EVEN A YEAR AGO THE REINVESTMENT INTEREST RATE OF THE FUNDS HAS DECLINED QUOTE BLACKROCK SAID IF THEY DIDN'T CUT DIVIDENDS THE FUNDS WOULD BE FORCED TO DIP INTO THEIR CAPITAL TO MAKE PAYMENTS TO SHAREHOLDERS SAID CLAY LEBHAR A MANAGING DIRECTOR AT PRUDENTIAL SECURITIES WHICH UNDERWROTE MANY OF THE FUNDS' INITIAL PUBLIC OFFERINGS ONE FUND BLACKROCK INCOME TRUST INCORPORATED IS CUTTING ITS DIVIDEND TO SIX POINT TWO FIVE CENTS A SHARE FROM SEVEN POINT OH EIGHT CENTS ITS STOCK ON THE NEW YORK STOCK EXCHANGE DROPPED TO EIGHT POINT ONE TWO FIVE DOLLARS A SHARE IN COMPOSITE TRADING FRIDAY DOWN TWENTY FIVE CENTS ANOTHER FUND BLACKROCK ADVANTAGE TERM TRUST INCORPORATED IS CUTTING ITS DIVIDEND TO SIX POINT OH FOUR TWO CENTS A SHARE FROM SIX POINT EIGHT SEVEN FIVE CENTS ITS SHARES CLOSED AT NINE POINT SIX TWO FIVE DOLLARS DOWN TWELVE POINT FIVE CENTS IN COMPOSITE TRADING THE TERM NATURE OF SOME OF THE FUNDS CONTRIBUTED TO BLACKROCK'S DECISION TO REDUCE THEIR DIVIDENDS THESE FUNDS MATURE AT A CERTAIN DATE IN THE FUTURE AT WHICH TIME THEY TRY TO HAVE A TARGET VALUE PER SHARE TO HELP INSULATE THE FUNDS FROM LOSSES AS THEY APPROACH MATURITY THEY TEND TO BUY BONDS WITH SHORTER AND SHORTER MATURITIES OVER TIME BECAUSE SHORT TERM INTEREST RATES ARE SO LOW THAT HAS ALSO SQUEEZED THE FUNDS' INTEREST INCOME A. B. C. NEWS SAID IT IS LOOKING INTO AN INCIDENT OF STAGING ON QUOTE WORLD NEWS TONIGHT WITH PETER JENNINGS QUOTE IN THE JANUARY TWENTY SIXTH INCIDENT THE BROADCAST AIRED A REPORT FROM CORRESPONDENT COKIE ROBERTS WHO WAS SHOWN IN FRONT OF CAPITOL HILL WEARING A COAT MR. JENNINGS REFERRED SEVERAL TIMES TO THE FACT THAT SHE WAS LIVE ON CAPITOL HILL IN FACT MS. ROBERTS WAS IN THE STUDIO AND THE CAPITOL SCENE WAS IMPOSED ELECTRONICALLY BUT MR. JENNINGS DID NOT KNOW THAT THE NEWSCAST FREQUENTLY USES SUCH A BACKDROP FOR COSMETIC REASONS BUT ALWAYS MAKES CLEAR THAT THE REPORTER IS NOT ACTUALLY AT THE SCENE MS. ROBERTS WAS WEARING THE COAT WHICH ADDED TO THE ILLUSION AT THE REQUEST OF THE NEWSCAST'S NEW EXECUTIVE PRODUCER RICK KAPLAN THROUGH AN A. B. C. NEWS SPOKESWOMAN MR. KAPLAN DECLINED TO COMMENT YESTERDAY ON THE INCIDENT WHICH WAS A VIOLATION OF A. B. C. NEWS POLICY THE INCIDENT WAS FIRST REPORTED IN YESTERDAY'S ISSUE OF VARIETY A TRADE PAPER A. B. C. NEWS IS A DIVISION OF CAPITAL CITIES SLASH A. B. C. INCORPORATED IN THIS SMALL CITY IN SOUTHWESTERN JAPAN GORO AOYAMA SITS AT THE CENTER OF A RETAILING EMPIRE BUILT ON CHEAP SUITS SUITS AREN'T A FASHION STATEMENT THEY'RE SIMPLY A BUSINESSMAN'S UNIFORM SAYS MR. AOYAMA HEAD OF THE FIVE HUNDRED FOURTEEN STORE AOYAMA TRADING COMPANY DISCOUNT SUIT CHAIN WHY SHOULD LEGIONS OF SALARYMEN SPEND HARD EARNED CASH ON SEVEN HUNDRED DOLLAR SUITS SOLD BY DEPARTMENT STORES HE ARGUES WHEN AOYAMA'S MASS PRODUCED TWO HUNDRED SEVENTY FIVE DOLLAR SUITS ARE DECENT ENOUGH EVEN IN LABEL CONSCIOUS JAPAN MANY OF HIS COMPATRIOTS ARE ASKING THE SAME QUESTION AT A TIME WHEN DEPARTMENT STORE SALES ARE PLUNGING AOYAMA STANDS APART POSTING STEADY INCREASES ANALYSTS SUPPORT THE COMPANY'S ASSERTIONS THAT IT ACCOUNTS FOR ABOUT ONE OF EVERY FOUR SUITS SOLD IN JAPAN IN THE FISCAL YEAR ENDED MARCH THIRTY FIRST NINETEEN NINETY THREE SALES ROSE THIRTY PERCENT TO ONE HUNDRED FIFTY POINT NINE BILLION YEN ONE POINT THREE NINE BILLION DOLLARS WHILE PRETAX PROFIT WAS UP TWELVE PERCENT AT THIRTY POINT TWO BILLION YEN LAST WEEK THE JAPANESE BUSINESS DAILY NIHON KEIZAI SHIMBUN SAID AOYAMA IS LIKELY TO REPORT AN ELEVEN PERCENT INCREASE IN PRETAX PROFIT FOR FISCAL NINETEEN NINETY FOUR TO A RECORD THIRTY THREE POINT FIVE BILLION YEN ITS SALES ARE PROJECTED TO GROW TWENTY SIX PERCENT TO ONE HUNDRED NINETY BILLION YEN HOWEVER THOSE NUMBERS AREN'T AS GREAT AS THE ESTIMATES AOYAMA ITSELF IS PROJECTING INDEED SOME OF THE COMPANY'S CRITICS SAY THAT AOYAMA TENDS TO OVERESTIMATE OTHER ASPECTS OF ITS BUSINESS IN PARTICULAR REGULATORS ARE LOOKING INTO WHETHER THE COMPANY'S ADS OVERSTATE THE SAVINGS ON ITS SUITS MR. AOYAMA SAYS HE HASN'T VIOLATED ANY RULES AND REFUSES TO HALT THE ADS CRITICISM NOTWITHSTANDING THE SIXTY THREE YEAR OLD MR. AOYAMA WHOSE PRIVATE COMPANY OWNS EIGHT POINT FIVE PERCENT OF AOYAMA TRADING IS REACHING THE PEAK OF HIS CAREER AT AN AGE WHEN MANY BUSINESSMEN BEGIN TO SLOW DOWN MOREOVER HE HAS BECOME A FITTING SYMBOL OF THE NEW THINKING CHALLENGING JAPAN'S BUSINESS ESTABLISHMENT AS IT CONFRONTS ECONOMIC DEREGULATION AND ECONOMIC DOWNTURN AFTER STARTING OUT WITH A SINGLE SMALL SUIT OUTLET IN RURAL JAPAN THIRTY YEARS AGO MR. AOYAMA NOW HAS BECOME A SOURCE OF RETAILING SAVVY INSPIRING WOULD BE ENTREPRENEURS AND PROVIDING LESSONS FOR AILING CORPORATE GIANTS HE IS THE SUBJECT OF SEVERAL HOW TO BOOKS ON BUSINESS AND HAS WRITTEN A HOT SELLING AUTOBIOGRAPHY HE APPEARS OFTEN IN MAGAZINES OFFERING A MESSAGE OF TAKE CHARGE GUMPTION THAT IS UNUSUAL FOR JAPAN THE FIFTH SON OF A CARPENTER WHO BUILT SHRINES MR. AOYAMA SAYS HE ALWAYS HAD A BURNING DESIRE TO BE NUMBER ONE WHEN ILLNESS PREVENTED HIM FROM ATTENDING UNIVERSITY HE VOWED TO SUCCEED IN BUSINESS HIS DEDICATION SHOWS IN HIS HANDS ON MANAGEMENT STYLE UNTIL RECENTLY HE PERSONALLY SELECTED THE SITES OF NEW STORES HE GETS UP AT FOUR A. M. TO PORE THROUGH A THICK BOOK THAT COMPARES SALES AT HIS STORES AGAINST THOSE OF COMPETITORS WEEKENDS ARE RESERVED FOR STORE OPENINGS SOMETIMES FOUR A DAY HOLIDAYS ARE FOR OTHER PEOPLE TO ENJOY HIS INDIVIDUALISM HAS KEPT HIM OUTSIDE JAPAN'S MAINSTREAM BUSINESS COMMUNITY AOYAMA'S HEAD OFFICE IS PERCHED ATOP ONE OF ITS DISCOUNT STORES NEXT TO A MCDONALD'S RESTAURANT IN A FUKUYAMA SUBURB FOR AN INTERVIEW MR. AOYAMA HIMSELF WEARS A THREE HUNDRED TWENTY FIVE DOLLAR AOYAMA SUIT AND APPEARS UNAWARE OF A HOLE IN HIS SHOE HE DOESN'T PARTICIPATE IN NATIONAL RETAIL ASSOCIATIONS QUOTE I'M NOT GOING TO ASSOCIATE MYSELF WITH THE KIND OF PEOPLE WHO ALWAYS ACT TOGETHER AND TRY TO AVOID GETTING HURT QUOTE HE SAYS MR. AOYAMA BUYS HIS MERCHANDISE IN BULK DIRECTLY FROM MANUFACTURERS MOST OF THE SUITS ARE OF SIMPLE SIMILAR DESIGNS AND SOME ARE STITCHED IN CHINA AND NORTH KOREA WHERE LABOR IS RELATIVELY CHEAP HE ALSO IMPORTS SOME FOREIGN BUSINESS STRATEGIES FOR INSTANCE AFTER SEEING ROADSIDE SHOPPING CENTERS IN CALIFORNIA MR. AOYAMA REALIZED THAT MANY OF HIS CUSTOMERS BELONG TO THE GROWING RANKS OF CAR DRIVING JAPANESE SUBURBANITES SO WHILE MANY JAPANESE RETAILERS WERE BUSY OPENING STORES IN URBAN CENTERS AOYAMA QUICKLY BUILT MANY OUTLETS WITH PARKING IN RURAL AREAS WHERE RENTS ARE LOWER HE WAS HOWEVER ALSO BRAZEN ENOUGH TO OPEN A STORE IN TOKYO'S TONY GINZA DISTRICT RIGHT NEXT TO THE NATION'S CLASSIEST DEPARTMENT STORES THE GINZA GAMBIT GRABBED HEADLINES MR. AOYAMA MADE THE MOST OF THE ATTENTION HE OPENED THE STORE AT SEVEN A. M. AND OFFERED TWENTY FIVE DOLLAR SUITS ON THE FIRST DAY THE CAMERAS WHIRRED AS BARGAIN HUNTERS CLAWED AT THE RACKS DEPARTMENT STORES ONCE DISMISSIVE ARE NOW SHOCKED TO FIND THIS NO FRILLS INTRUDER SIPHONING AWAY BUSINESS AND CRITICIZING THEIR STYLE WHAT'S MORE HIS SUCCESS HAS SPARKED INTENSE COMPETITION AS COPYCAT SUIT CHAINS HAVE SPROUTED UP AROUND THE COUNTRY ONE AFTER ANOTHER DEPARTMENT STORES ARE SLASHING SUIT PRICES MANY CONSUMERS ONCE DISMISSED AOYAMA TOO ASSUMING THAT ITS LOW PRICES MEANT SHODDY QUALITY BUT NO FRILLS STORES AND LOW PRICES FIT PERFECTLY THE CURRENT MOOD IN JAPAN WHERE TOUGH TIMES ARE MAKING CONSUMERS MORE PRICE CONSCIOUS MR. AOYAMA SAYS HE PLANS TO OPEN AS MANY AS ONE HUNDRED TEN STORES IN JAPAN ALONE THIS YEAR HE ALSO HOPES TO TRANSPLANT HIS SUCCESS ABROAD PLANNING TO OPEN A STORE IN SHANGHAI IN THE COMING MONTHS AND IN TIME FIFTEEN TO TWENTY STORES IN TAIWAN ALL IN ALL HE VOWS TO INCREASE SALES SIXFOLD TO ONE TRILLION YEN IN THE NEXT DECADE STILL MR. AOYAMA SAYS HE REALIZES THAT EVENTUALLY HE MUST SPREAD HIS BUSINESS TO OTHER AREAS SUCH AS MEN'S CASUAL CLOTHES HE RECENTLY LINKED UP WITH GIORDANO LIMITED A HONG KONG CLOTHING RETAILER AND J. C. PENNEY COMPANY OF THE U. S. TO SELL THEIR CASUAL CLOTHES IN JAPAN POLICE SARGENT JOSEPH SMIT'S MEN ARM THEMSELVES WITH REVOLVERS THEN BOOST THEIR FIREPOWER WITH SOME ODD WEAPONS GAS MASKS COMPUTERS AND GREENISH BOTTLES FOR TAKING SAMPLES THEY'RE ON THE PROWL FOR A MOTLEY BAND OF CROOKS SCOFFLAWS WHO DIRTY THE AIR WITH NOXIOUS FUMES AND FOUL THE WATER WITH HEAVY METALS BUT THE ODDS ARE STACKED AGAINST ANTWERP'S ENVIRONMENT POLICE WHO PATROL SOME THIRTEEN THOUSAND COMPANIES WITH JUST FIVE FULL OFFICERS AND TWO SQUAD CARS QUOTE WE'VE BEEN TRYING FOR A THIRD CAR FOR THREE YEARS QUOTE SHRUGS SARGENT SMIT A STRAPPING MAN DRESSED IN A GOLF SHIRT DESPITE THE ICY RAIN OUTSIDE HE COULD USE FIVE MORE OFFICERS TOO BUT THE CITY SAYS THERE'S NO MONEY FOR IT SARGENT SMIT'S PLIGHT IS COMMON FOR EUROPE THOUGH THE EUROPEAN COMMISSION THE EXECUTIVE ARM OF THE EUROPEAN UNION HAS PUMPED OUT REAMS OF GREEN LEGISLATION E. U. MEMBERS SPEND LESS THAN TWO PERCENT OF THEIR GROSS DOMESTIC PRODUCT ON ALL ENVIRONMENTAL EFFORTS COMBINED ENFORCEMENT WOULD BE A FRACTION OF THAT A SMALL FRACTION SAYS E. U. ENVIRONMENT COMMISSIONER YANNIS PALEOKRASSAS AS A RESULT MOST ENFORCEMENT GROUPS IN THE E. U. ARE OVERWHELMED AND UNDERFUNDED BUT THEY MIGHT ALSO CONSIDER THEMSELVES FORTUNATE AT LEAST THERE IS AN ENVIRONMENTAL POLICE IN ANTWERP MR. PALEOKRASSAS SAYS IN MOST MEMBER STATES THERE IS NO ENVIRONMENTAL POLICE ONE EXPLANATION FOR THE E. U.'S PATCHY ENFORCEMENT EFFORTS CAN BE FOUND IN THE WAY THE UNION'S SINGLE HOUSE IS BEING CONSTRUCTED BLUEPRINTS ARE HANDED DOWN FROM THE HIGHEST POLITICAL RAFTERS BUT ENFORCEMENT IS HAMMERED TOGETHER BY LOCAL AUTHORITIES ON THE GROUND NOT SURPRISINGLY IT'S PROVING DIFFICULT TO TURN THE ARCHITECTS' GRAND VISION INTO SOMETHING THAT WORKS JUST HOW DIFFICULT CAN BE SEEN AT ANTWERP'S ENVIRONMENT POLICE IN A BARE OFFICE PARTLY FURNISHED WITH OLD CHAIRS BROUGHT FROM HOME INSPECTOR WALTER VAN MIEGHEM FLIPS THROUGH A THICK BOOK LISTING EMISSIONS PERMITS HELD BY THOUSANDS OF LOCAL COMPANIES THE FINE PRINT COVERS EVERYTHING FROM ONE MAN AUTO PAINT SHOPS TO SPRAWLING PETROCHEMICAL PLANTS SARGENT VAN MIEGHEM AND HIS CO WORKERS ARE SUPPOSED TO KEEP TABS ON THEM ALL PLUS FERRET OUT OPERATORS WHO HOLD NO LICENSES IT'S A COMPLICATED BEAT AND IT'S NOT GETTING ANY SIMPLER DESPITE EFFORTS TO CONSOLIDATE SOME E. U. GREEN LAWS THERE ARE SOME TWO HUNDRED PIECES OF SUCH LEGISLATION AND MORE ARE IN THE PIPELINE BUT THOSE MEASURES SAY SURPRISINGLY LITTLE ABOUT ENFORCEMENT WHICH REMAINS THE RESPONSIBILITY OF EACH MEMBER STATE THE COMMISSION'S ENVIRONMENTAL DIRECTORATE IS IN NO POSITION TO POLICE THE LAWS ANYWAY WITH A PERMANENT STAFF OF ABOUT THREE HUNDRED FIFTY PEOPLE IT HAS NO ENFORCEMENT PERSONNEL AND RELIES ON WORRIED CITIZENS AND ENVIRONMENTAL GROUPS TO REPORT PROBLEMS THE ENVIRONMENTALISTS THEMSELVES LACK THE MANPOWER FOR COLLECTING COMPREHENSIVE STATISTICS IN ALL TWELVE MEMBER STATES IT'S JUST NOT SOMETHING WE HAVE THE RESOURCES TO DO LAMENTS SUSAN LEUBUSCHER OF GREENPEACE IN BRUSSELS ENFORCEMENT VARIES GREATLY THROUGHOUT THE E. U. THE STAR PERFORMERS ARE DENMARK THE NETHERLANDS AND GERMANY WHERE EACH FEDERAL STATE HAS ITS OWN ENVIRONMENTAL AUTHORITIES ENFORCEMENT ALSO VARIES FROM TOWN TO TOWN REGION TO REGION BELGIUM FOR EXAMPLE IS CONSIDERED TO HAVE A POOR ENFORCEMENT RECORD COMPARED WITH ITS GREEN NEIGHBORS YET ANTWERP'S EFFORTS COMPARE WELL WITH THOSE MADE IN GHENT WHICH DOESN'T CARRY OUT SYSTEMATIC INSPECTIONS AND BOTH CITIES SURPASS THEIR HOME REGION OF FLANDERS WHERE SOME ONE HUNDRED INSPECTORS STRUGGLE TO MONITOR THOUSANDS OF SMALL FACTORIES AND POTENTIAL DUMP SITES DOTTING THE FLAT LANDSCAPE OUT IN THE COUNTRYSIDE FLEMISH LOCALS OFTEN SPOT APPARENT VIOLATIONS TONS OF PLASTIC WASTE SHOW UP IN VACANT LOTS PIG MANURE FOULS CANALS DYES TURN BROOKS RED OR ORANGE DEPENDING ON WHAT LOCAL FACTORIES ARE MAKING QUOTE WE WOULD BE MORE EFFECTIVE IF WE HAD TWO HUNDRED INSPECTORS QUOTE SAYS MARC PALLEMAERTS A CABINET MEMBER IN FLANDERS'S ENVIRONMENTAL MINISTRY BACK IN ANTWERP ON AN ICY MORNING WORRIED CITIZENS BEGIN PHONING THE ENVIRONMENT POLICE BEFORE THE OFFICERS HAVE TASTED THEIR COFFEE SOMEBODY HAS DROPPED A TRUCKLOAD OF TRASH IN THE STREET OUTSIDE A CITY DUMP A NEW DRY CLEANER DOESN'T HAVE A PERMIT SUCH INCIDENTS CAN TURN OUT TO BE MORE SERIOUS THAN THEY SEEM ONE COMPLAINT ABOUT BEDDING DUMPED NEAR A SMELTER TURNED UP MOUNDS OF SAND LACED WITH ARSENIC COBALT AND OTHER HEAVY METALS THE SHOP WITHOUT A PERMIT REFLECTS ANOTHER REALITY HERE AS ELSEWHERE SMALL OPERATORS ARE NOTORIOUSLY TOUGH TO PATROL MANY DON'T KNOW THE LAWS OTHERS SAY THEY CAN'T AFFORD TO OBEY THEM SARGENT VAN MIEGHEM WINCES AS HE RECALLS THE TIMES HE HAS TOLD MOM AND POP OPERATIONS TO CLEAN UP THEIR ACTS OR SHUT DOWN BRITISH ENVIRONMENTAL CONSULTANT DAVID GILBERT HAS VISITED THE ANTWERP TEAM AND SIMILAR FORCES AS PART OF AN ENFORCEMENT STUDY FOR THE DUTCH GOVERNMENT CONDUCTED BY HIS FIRM ENVIRONMENTAL RESOURCES MANAGEMENT HIS FINDINGS SEEM TO RAISE MORE QUESTIONS THAN ANSWERS CAN YOU TRUST LABORATORY TESTS OF EMISSIONS AFTER ALL TWO LABS USING DIFFERENT TECHNIQUES WILL DRAW DIFFERENT CONCLUSIONS FROM THE SAME SAMPLE WHAT IS AN INSPECTOR AN INSPECTOR MAY AS IN BRITAIN BE A LOCAL ENVIRONMENTAL HEALTH OFFICER WHO MONITORS THE QUALITY OF FOOD SOLD IN SHOPS AS WELL AS ENVIRONMENTAL MATTERS AND WHAT HAPPENS WHEN A CASE COMES TO COURT YOU MIGHT PROSECUTE A LOT OF PEOPLE BUT THEY MIGHT STILL BE KICKING STUFF OUT INTO THE ENVIRONMENT DOCTOR GILBERT SAYS THIS GALLS SARGENT SMIT'S MEN PARTLY BECAUSE THEY USED TO PUT ALLEGED POLLUTERS BEHIND BARS WITHOUT GOING THROUGH THE COURTS POLICE AND ENVIRONMENTAL GROUPS SAY A SPATE OF SUCH PREVENTIVE DETENTIONS IN THE LATE NINETEEN EIGHTIES SHOCKED MANY MANAGERS IN ANTWERP INTO INVESTING IN GREEN PROGRAMS BUT THE CAMPAIGN ENDED IN NINETEEN NINETY WHEN BELGIAN LEGISLATORS CUT BACK THE USE OF PREVENTIVE DETENTION RAMPANT ENFORCEMENT PROBLEMS PROMPT MANY OBSERVERS TO PIN THEIR HOPES ON THE E. U.'S NEW ENVIRONMENT AGENCY AN INSTITUTION CREATED IN JUNE NINETEEN NINETY BUT INAUGURATED ONLY LAST MONTH AFTER BICKERING E. U. LEADERS FINALLY AGREED ON A SITE FOR THE AGENCY DENMARK WITH AN ANNUAL BUDGET OF EIGHT MILLION EUROPEAN CURRENCY UNITS SEVEN POINT TWO MILLION DOLLARS THE AGENCY WILL INITIALLY LIMIT ITSELF TO COLLECTING AND EVALUATING INFORMATION NO MEAN TASK CONSIDERING THE E. U.'S LACK OF ENVIRONMENTAL DATA BUT MANY OBSERVERS ALSO EXPECT THE AGENCY TO DO SERIOUS TEETHING IN ITS FIRST TWO YEARS AND END UP AS A WATCHDOG WITH A FIRM BITE THE AGENCY WILL CREATE STANDARD CRITERIA FOR ALL NATIONAL INSPECTORS AND WITHIN TWO YEARS A REVIEW WILL DETERMINE WHETHER ITS POWERS SHOULD BE EXTENDED TO MONITORING EVENTUALLY THAT COULD PAVE THE WAY FOR A EUROPEAN VERSION OF THE U. S. ENVIRONMENTAL PROTECTION AGENCY MONICA HOUSTON WAESCH IN BONN CONTRIBUTED TO THIS ARTICLE E. Z. COMMUNICATIONS INCORPORATED SAID IT PURCHASED RADIO STATION KNCIFM SACRAMENTO CALIFORNIA FROM NATIONWIDE COMMUNICATIONS INCORPORATED OF COLUMBUS OHIO FOR THIRTEEN MILLION DOLLARS THE PURCHASE GIVES E. Z. A SECOND FULLPOWER F. M. STATION IN SACRAMENTO WHERE IT ALSO OWNS KRAK F. M. AND KHTK A. M. AND E. Z. SAID IT SOLD SACRAMENTO STATION KQBRFM TO PROGRESSIVE MEDIA GROUP INCORPORATED SACRAMENTO FOR TWO POINT FIVE MILLION DOLLARS WITH THE PENDING PURCHASES E. Z. WILL OWN FOURTEEN RADIO STATIONS POWERSOFT CORPORATION WHICH GREW SHARPLY IN THE PAST YEAR BY SELLING COMPLEX SOFTWARE TOOLS TO LARGE CORPORATIONS WILL TARGET PERSONAL COMPUTER SOFTWARE BUYERS WITH A DESKTOP DATABASE PACKAGE TO BE UNVEILED TODAY THE MOVE PUTS THE BURLINGTON MASSACHUSETTS BASED UPSTART IN DIRECT COMPETITION WITH BORLAND INTERNATIONAL INCORPORATED SOFTWARE PUBLISHING CORPORATION AND TO SOME EXTENT EVEN MICROSOFT CORPORATION THE MARKET LEADER MITCHELL E. KERTZMAN POWERSOFT'S CHAIRMAN AND CHIEF EXECUTIVE SAID YESTERDAY HE'S PUSHING INTO THE RETAIL MAINSTREAM OF THE MARKET BECAUSE HE EXPECTED BORLAND MICROSOFT AND OTHER DATABASE MAKERS WOULD SOON ATTACK HIS OWN NICHE QUOTE WE WANT TO ENGAGE THEM IN THEIR SPACE INSTEAD WHERE THEY'RE RELATIVELY VULNERABLE RIGHT NOW QUOTE SOME ANALYSTS SAY BORLAND COULD HAVE THE MOST TO LOSE POWERSOFT IS GOING STRAIGHT FOR BORLAND'S JUGULAR AT A TIME WHEN THEY'RE ESPECIALLY VULNERABLE SAID DONALD DEPALMA AN INDUSTRY ANALYST AT FORRESTER RESEARCH MILLIONS OF USERS HAVE BEEN LEFT BEHIND BY BORLAND HE SAID THE SCOTTS VALLEY CALIFORNIA CONCERN HAS REPEATEDLY DELAYED NEEDED UPDATES FOR ITS AGING DBASE LINE WHICH HAD DOMINATED THE MARKET ANALYSTS NOW SAY THE NEW DBASE WON'T BE OUT UNTIL JUNE DAVID WATKINS A BORLAND VICE PRESIDENT DISMISSED HIS WOULD BE RIVAL WE'VE BEEN IN THE BUSINESS TEN YEARS AND THEY'VE BEEN IN IT FOR ABOUT TWO HOURS HE SAID BORLAND HAS NINE MILLION USERS WHO KNOW DBASE PROGRAMMING HE SAID WHILE POWERSOFT IS ASKING THEM TO FORGET EVERYTHING THEY KNOW TO LEARN A WHOLE NEW LANGUAGE POWERSOFT'S DESIGN EMBRACES THE FAST GROWING CLIENT SERVER MODEL IN WHICH DESKTOP P. C.S OR CLIENTS ARE TIED TO LARGE SERVER COMPUTERS IN A NETWORK MOST P. C. DATABASES WERE BUILT FOR STAND ALONE P. C.S AND DON'T EASILY QUOTE SCALE UP QUOTE TO LARGE CLIENT SERVER SYSTEMS POWERSOFT'S SUDDEN THRUST INTO P. C. SOFTWARE FOLLOWS A YEAR OF STRONG GROWTH FOR ITS CORE POWERBUILDER LINE WHICH IS SOLD TO PROFESSIONAL DEVELOPERS OF SOFTWARE FOR LARGE SYSTEMS LAST YEAR REVENUE MORE THAN DOUBLED TO FIFTY ONE MILLION DOLLARS FROM TWENTY ONE MILLION DOLLARS IN NINETEEN NINETY TWO POWERSOFT WILL SELL ITS NEW PRODUCT POWERBUILDER DESKTOP AT A PROMOTIONAL PRICE OF TWO HUNDRED FORTY NINE DOLLARS THROUGH MAY THIRTY FIRST WHEN IT RISES TO A RETAIL PRICE OF SIX HUNDRED NINETY FIVE DOLLARS THE COMPANY ALSO WILL TRIM PRICING ACROSS ITS ENTIRE LINE CUTTING SOME PACKAGES BY ONE HUNDRED DOLLARS ITS FLAGSHIP POWERBUILDER ENTERPRISE WILL SLIP TWO HUNDRED DOLLARS TO A SUGGESTED RETAIL PRICE OF THREE THOUSAND THREE HUNDRED NINETY FIVE DOLLARS POWERSOFT MUST BUILD A RETAIL PRESENCE SAID RICK SHERLUND AN ANALYST WITH GOLDMAN SACHS AND COMPANY WHILE BORLAND AND MICROSOFT ALREADY HAVE WELL ESTABLISHED BROAD BASED DISTRIBUTION CHANNELS SEPARATELY POWERSOFT SAID FRIDAY IT COMPLETED ITS PURCHASE OF WATCOM CORPORATION WATERLOO ONTARIO FOR ONE POINT ONE ONE MILLION POWERSOFT SHARES OR ABOUT FIFTY EIGHT MILLION DOLLARS THE ACQUISITION ANNOUNCED LAST YEAR BROUGHT POWERSOFT STRATEGIC NEW DATABASE TECHNOLOGY ANALYSTS SAID PALOMAR MEDICAL TECHNOLOGIES INCORPORATED COMPLETED ITS ACQUISITION OF DYNACO CORPORATION AND DYNACO WEST CORPORATION WHICH DEVELOP AND MANUFACTURE HIGH DENSITY ELECTRONIC CIRCUITRY THE COMPANY SAID IN JANUARY THAT IT HAD SIGNED AN AGREEMENT TO ACQUIRE DYNACO AND DYNACO WEST OF TEMPE ARIZONA FOR ONE POINT THREE MILLION DOLLARS IN CASH AND THE ASSUMPTION OF ABOUT SIX MILLION DOLLARS IN LIABILITIES AIR NEW ZEALAND REPORTED THAT OPERATING PROFIT AFTER TAX ROSE FORTY FIVE PERCENT TO EIGHTY EIGHT POINT ONE MILLION NEW ZEALAND DOLLARS FIFTY POINT SIX MILLION U. S. DOLLARS IN ITS FISCAL FIRST HALF ENDED DECEMBER THIRTY FIRST THE CARRIER'S OPERATING PROFIT CLIMBED FROM SIXTY POINT NINE MILLION NEW ZEALAND DOLLARS A YEAR EARLIER SALES ROSE TO ONE POINT TWO SEVEN BILLION NEW ZEALAND DOLLARS FROM ONE POINT ONE SIX BILLION NEW ZEALAND DOLLARS AIR NEW ZEALAND SAID THE FIRST HALF WAS CHARACTERIZED BY ENCOURAGING SIGNS OF GROWTH IN TOURIST NUMBERS THE WITHDRAWAL OF U. S. CARRIER CONTINENTAL AIRLINES FROM THE NEW ZEALAND MARKET LAST YEAR ALLOWED AIR NEW ZEALAND TO INCREASE ITS CAPACITY ON SOME ROUTES HOWEVER IT ADDED THAT THE LATEST GROWTH IN EARNINGS WAS DRIVEN ALMOST ENTIRELY BY GROWTH IN PASSENGER TRAFFIC THE FAVORABLE EFFECTS OF LOW FUEL AND INTEREST COSTS AND THE BENEFIT OF TAXATION OFFSETS ALSO CONTRIBUTED TO THE PROFIT INCREASE AIR NEW ZEALAND SAID THE AIRLINE ADDED THAT FOR THE YEAR IT IS EXPECTED TO QUOTE COMFORTABLY EXCEED QUOTE ITS PROFIT OF ONE HUNDRED THIRTY NINE POINT FIVE MILLION NEW ZEALAND DOLLARS THE PREVIOUS FISCAL YEAR THE AIRLINE SAID ITS STRONG BALANCE SHEET AND SUBSTANTIAL CASH RESERVES MEAN IT HAS DECIDED TO SUSPEND ITS DIVIDEND REINVESTMENT PLAN WHICH ALLOWS SHAREHOLDERS TO TAKE BONUS SHARES INSTEAD OF DIVIDENDS AIR NEW ZEALAND IS THIRTY FIVE PERCENT OWNED BY BRIERLEY INVESTMENTS LIMITED A NEW ZEALAND INVESTMENT AND HOTEL CONCERN TWENTY PERCENT BY QANTAS AIRWAYS OF AUSTRALIA FIVE PERCENT BY JAPAN AIRLINES AND FORTY PERCENT BY INSTITUTIONAL AND PRIVATE INVESTORS THE MEXICAN GOVERNMENT SAID IT PLANS TO SELL TWO POINT FOUR BILLION DOLLARS OF STOCK IN THREE BANKS APPARENTLY IN PART TO MAKE SURE IT HAS ENOUGH MONEY TO ADDRESS THE PROBLEMS HIGHLIGHTED BY THE UPRISING IN CHIAPAS THE REVOLT IN CHIAPAS HAS FOCUSED SO MUCH ATTENTION ON THE ABJECT POVERTY THAT STILL EXISTS IN MUCH OF MEXICO THAT WITH PRESIDENTIAL ELECTIONS COMING UP IN AUGUST THE GOVERNMENT HAS SAID IT WILL SHARPLY INCREASE SPENDING ON SOCIAL PROBLEMS BUT MONEY IS HARD TO COME BY ECONOMIC WEAKNESS HAS CUT INTO TAX REVENUE ENOUGH THAT EVEN BEFORE CHIAPAS THE GOVERNMENT HAD SAID IT WOULD ONLY BREAK EVEN ON THE FEDERAL BUDGET THIS YEAR AND MANY PRIVATE ECONOMISTS FELT THE GOVERNMENT WAS BEING OVERLY OPTIMISTIC THE MEXICAN GOVERNMENT DOESN'T HAVE THE LUXURY OF CONSIDERING RUNNING UP A BIG DEFICIT BECAUSE THAT WOULD HURT MEXICO'S CREDIBILITY WITH INTERNATIONAL INVESTORS SO THE GOVERNMENT HAS BEGUN ANNOUNCING PLANS TO SELL MANY OF ITS REMAINING HOLDINGS IN ONCE NATIONALIZED BUSINESSES GUILLERMO ORTIZ MARTINEZ DEPUTY FINANCE SECRETARY SAID AT A NEWS CONFERENCE THAT THE GOVERNMENT WILL SELL BY THE END OF THE YEAR ITS TWENTY ONE PERCENT HOLDING IN BANCOMER ITS EIGHT POINT FOUR PERCENT STAKE IN BANCO SERFIN AND ITS EIGHT POINT EIGHT PERCENT INTEREST IN BANCO INTERNACIONAL HE SAID THE SALES WILL COMPLETE THE GOVERNMENT'S PRIVATIZATION OF THE NATION'S BANKS A PROGRAM THAT HAS BROUGHT IN MORE THAN FOURTEEN BILLION DOLLARS OVER THE PAST TWO PLUS YEARS MR. ORTIZ SAID THE SALES WILL BE MADE BOTH IN MEXICAN AND IN INTERNATIONAL MARKETS BUT DIDN'T PROVIDE MORE DETAILS HIS STATEMENTS ABOUT THE BANKS FOLLOW RECENT ANNOUNCEMENTS BY GOVERNMENT OFFICIALS THAT MEXICO ALSO PLANS TO SELL ITS SMALL REMAINING STAKE IN TELEFONOS DE MEXICO S. A. THE TELEPHONE MONOPOLY MR. ORTIZ ALSO SAID THAT THE GOVERNMENT WILL SHORTLY PUBLISH RULES FOR FOREIGN BANKS THAT WANT TO OPERATE IN MEXICO IT HAD GENERALLY BEEN EXPECTED THAT FOREIGN BANKS WOULD START OPERATING QUICKLY IN MEXICO BECAUSE THE NORTH AMERICAN FREE TRADE AGREEMENT PROVIDES FOR AN EIGHT PERCENT MARKET SHARE FOR FOREIGN BANKS THIS YEAR IN FACT GOVERNMENT OFFICIALS HAVE OFTEN TALKED ABOUT WANTING FOREIGN BANKS TO QUICKLY START PROVIDING MORE COMPETITION FOR MEXICAN BANKS THAT WAY MEXICAN BANKS WOULD HAVE TO BEGIN LOWERING RATES THAT CAN STILL TOTAL TWENTY PERCENT TO THIRTY PERCENT ON MANY LOANS IN A COUNTRY WHERE INFLATION IS WELL UNDER TEN PERCENT BUT MR. ORTIZ'S STATEMENT SHOWS THAT IT WILL STILL BE MANY MONTHS BEFORE FOREIGN BANKS HAVE ANY KIND OF PRESENCE IN MEXICO ONCE THE FINANCE MINISTRY PUBLISHES THE RULES BANKS WILL BE GIVEN NINETY DAYS TO FILE THEIR APPLICATIONS THEN THE FINANCE MINISTRY WILL DECIDE WHICH BANKS GET LICENSES ONLY THEN WILL FOREIGN BANKS START IN EARNEST TO MOVE INTO MEXICO K. L. M. ROYAL DUTCH AIRLINES IS REDUCING THE NUMBER OF OPERATING DIVISIONS TO TWO FROM THREE AND TIGHTENING UP LINES OF MANAGEMENT THE DUTCH FLAG CARRIER SAID IT WILL RETAIN ITS PASSENGER SALES AND SERVICE AND CARGO DIVISIONS BUT ELIMINATE ITS OPERATIONS DIVISION K. L. M. BASED IN AMSTELVEEN THE NETHERLANDS SAID IT IS MAKING THE CHANGES QUOTE TO FURTHER INCREASE THE COMPANY'S ABILITY TO RESPOND RAPIDLY AND FLEXIBLY QUOTE TO MARKET DEVELOPMENTS THE THREE DIVISIONAL ORGANIZATIONAL SETUP AT K. L. M. WAS ESTABLISHED IN NINETEEN NINETY WITH THE INTENTION TO RE ORIENTATE THE COMPANY FROM A PRODUCTION DRIVEN TO A MARKET AND SERVICE DRIVEN ENTERPRISE BUT A K. L. M. SPOKESWOMAN SAID BUNDLING VARIOUS BUSINESS UNITS FOUR YEARS AGO UNDER THE UMBRELLA OF AN OPERATIONS DIVISION DIDN'T NECESSARILY PRODUCE OPERATING EFFICIENCIES RATHER WITH THE REMOVAL OF A LAYER OF DIVISIONAL MANAGEMENT FROM OVER THE VARIOUS OPERATING UNITS SUCH AS TECHNICAL SERVICES FLIGHT OPERATIONS AND CABIN CREW DEPARTMENTS HEADS OF SUCH UNITS NOW WILL REPORT DIRECTLY TO THE BOARD K. L. M. SAID IT NOW PLANS TO MERGE ITS CABIN CREW DEPARTMENTS WITH FLIGHT OPERATIONS TO FORM A NEW NON DIVISIONAL FLIGHT SERVICES BUSINESS UNIT THAT WILL REPORT DIRECTLY TO THE BOARD IN THE MEANTIME K. L. M. SAID THE PASSENGER SALES AND SERVICES DIVISION AND THE CARGO DIVISION ARE BOTH MEETING THE COMPANY'S ORIGINAL GOAL OF BRINGING ITS OPERATIONS CLOSER TO THE CLIENT BUT AT THE PASSENGER SALES AND SERVICES DIVISION K. L. M. SAID IT IS ELIMINATING THE MANAGEMENT POSITION OF SENIOR VICE PRESIDENT FIELD ORGANIZATION K. L. M. SAID IT WILL ALSO CONCENTRATE ITS ACTIVITIES IN NETWORK AND SCHEDULING DEVELOPMENT AND FLEET PLANNING IN ONE NEW DEPARTMENT AT PRESENT SOME OF THOSE ACTIVITIES ARE UNDER PASSENGER SALES AND SERVICES THIS MOVE WILL IMPROVE THE COMPANY'S ABILITY TO EXPLOIT OPPORTUNITIES IN PASSENGER AND CARGO MARKETS IN THE SHORT AND LONG TERM K. L. M. SAID ROYAL DUTCH SLASH SHELL GROUP AND BRITISH PETROLEUM COMPANY ON FRIDAY OPENED THE FOUR HUNDRED FIFTY MILLION RAND ONE HUNDRED THIRTY POINT FIVE MILLION DOLLARS EXTENSION TO THEIR JOINT SAPREF REFINERY IN DURBAN THE PROJECT IS THE LARGEST INVESTMENT BY SHELL AND B. P. IN SOUTH AFRICA IN MORE THAN TWENTY YEARS THE TWO COMPANIES SAID AND WILL INCREASE SAPREF'S TWO HUNDRED THOUSAND BARREL A DAY CAPACITY BY THIRTY FIVE PERCENT UNDER SOUTH AFRICA'S PETROLEUM PRODUCTS ACT OF NINETEEN SEVENTY SEVEN IT IS ILLEGAL TO PUBLISH PRODUCTION FIGURES THE LAW WAS PASSED AMID CONCERN THAT THE COUNTRY WOULDN'T BE ABLE TO BUY CRUDE OIL BECAUSE OF ANTI APARTHEID OIL EMBARGOES HOWEVER IT'S ESTIMATED THAT SHELL AND B. P. EACH CONTROL ABOUT SEVENTEEN PERCENT OF THE MARKET SHARE OF SOUTH AFRICAN REFINED OIL SOUTH AFRICA'S FUEL CONSUMPTION HAS BEEN GROWING AT AN ANNUAL RATE OF FOUR POINT OH PERCENT PROMPTING ALL THE REFINERIES TO IMPLEMENT EXPANSION PROGRAMS THREE YEARS AGO SOUTH AFRICA'S TOTAL REFINING CAPACITY IS ESTIMATED AT FOUR HUNDRED THIRTY THOUSAND BARRELS A DAY WITH TOTAL OIL REFINED AT THREE HUNDRED NINETY THOUSAND BARRELS A DAY THE SAPREF EXTENSION TOOK THREE YEARS TO BUILD WAS COMPLETED THREE MONTHS AHEAD OF SCHEDULE AND MET ALL BUDGET REQUIREMENTS THE TWO OIL GROUPS SAID THE BROTHER OF SILVIO BERLUSCONI THE ITALIAN MEDIA TYCOON AND LEADER OF A NEW CONSERVATIVE POLITICAL MOVEMENT WAS ARRESTED FRIDAY ON CORRUPTION CHARGES PAOLO BERLUSCONI IMPLICATED IN A SCANDAL INVOLVING ITALY'S LARGEST SAVINGS BANK CASSA DI RISPARMIO DELLE PROVINCIE LOMBARDE OR CARIPLO WAS ACCUSED OF PAYING A KICKBACK OF MORE THAN ONE BILLION LIRE FIVE HUNDRED NINETY TWO THOUSAND DOLLARS TO POLITICAL PARTIES ITALIAN NEWS REPORTS SAID HE TURNED HIMSELF IN TO POLICE FOR QUESTIONING STATE RUN T. V. SAID HE ARGUES THAT ANY MONEY PAID OUT WAS FOR NORMAL MIDDLEMAN FEES AND NOT KICKBACKS TO PARTIES EARLIER THIS MONTH SILVO BERLUSCONI ANNOUNCED HE WAS ENTERING POLITICS AND RUNNING CANDIDATES UNDER THE BANNER FORZA ITALIA GO ITALY IN PARLIAMENTARY ELECTIONS MARCH TWENTY SEVENTH TO TWENTY EIGHT THE MEDIA TYCOON HOLDS HIMSELF UP AS AN ALTERNATIVE TO A POLITICAL CLASS DISCREDITED BY ITALY'S TWO YEAR OLD CORRUPTION SCANDAL PAOLO BERLUSCONI HAS BEEN CLOSELY ASSOCIATED WITH HIS BROTHER IN BUSINESS DEALINGS ALTHOUGH IN RECENT YEARS HE CLAIMED HIS BUSINESS AFFAIRS WERE NO LONGER CONNECTED WITH HIS BROTHER'S COMPANY FININVEST LADBROKE SAID IT RECEIVED A NONREFUNDABLE DEPOSIT OF FIVE MILLION POUNDS A FURTHER SEVENTY EIGHT MILLION POUNDS IS TO BE RECEIVED APRIL EIGHTH THE BALANCE IN RESPECT TO TWO OF THE PROPERTIES WILL BE RECEIVED LATER THE MONEY WILL BE USED TO REDUCE DEBT LADBROKE OPERATES BETTING PARLORS AND RETAIL HOME IMPROVEMENT STORES UNDER THE NAME OF TEXAS HOMECARE AND OWNS HILTON HOTELS OUTSIDE THE U. S. THE COMPANY SAID THE PROPERTIES SOLD PRODUCED RENTAL INCOME OF FIVE POINT NINE MILLION POUNDS IN NINETEEN NINETY THREE THE BRITISH PROPERTIES INCLUDE THREE CENTRAL LONDON OFFICE BUILDINGS OFFICES IN BIRMINGHAM GLASGOW AND READING A WAREHOUSE IN BRIGHTON A LEISURE PROPERTY IN LUTON RETAIL UNITS IN GLOUCESTER AND PENDING COMPLETION BY FEBRUARY NINETEEN NINETY EIGHT A RETAIL AND WAREHOUSE PARK IN FALKIRK SCOTLAND THE FALKIRK PROPERTY REPRESENTS SIXTEEN MILLION POUNDS OF THE SALE THE NET ASSET VALUE OF THE PROPERTIES TOGETHER WITH THE ESTIMATED COMPLETION COSTS OF THE FALKIRK PROPERTY TOTALED NINETY FIVE POINT FIVE MILLION POUNDS LADBROKE SAID LADBROKE CHIEF EXECUTIVE PETER GEORGE SAID THE SALE IS QUOTE THE FIRST SIGNIFICANT STEP IN OUR PLANS TO SELL DOWN OUR COMMERCIAL PROPERTY INTERESTS QUOTE THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT APPLE COMPUTER INCORPORATED THREE HUNDRED MILLION DOLLARS OF NOTES PRICED AT SIX POINT FIVES AT NINETY NINE POINT NINE TWO FIVE TO YIELD SIX POINT FIVE ONE PERCENT IN TWO THOUSAND FOUR THE OFFERING WAS MANAGED BY GOLDMAN SACHS AND COMPANY CITICORP SECURITIES INCORPORATED C. S. FIRST BOSTON INCORPORATED AND MORGAN STANLEY AND COMPANY FEDERAL HOME LOAN MORTGAGE CORPORATION ONE HUNDRED MILLION DOLLARS OF DEBENTURES DUE FEBRUARY TWENTY SECOND NINETEEN NINETY NINE PRICED AT PAR TO YIELD FIVE POINT FIVE SEVEN PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE DEBENTURES CALLABLE AFTER ONE YEAR WERE PRICED AT A SPREAD OF TWENTY ONE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED FREEPORT MCMORAN RESOURCE PARTNERS L. P. ONE HUNDRED FIFTY MILLION DOLLARS OF EIGHT POINT SEVEN FIVE PERCENT SENIOR SUBORDINATED NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND FOUR ACCORDING TO THE PARTNERSHIP INTEREST WILL BE PAID SEMIANNUALLY FEBRUARY FIFTEENTH AND AUGUST FIFTEENTH STARTING AUGUST FIFTEENTH GOLDMAN SACHS AND COMPANY IS THE UNDERWRITER WESTERN NATIONAL CORPORATION ONE HUNDRED FIFTY MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS SEVEN POINT ONE TWO FIVES AT NINETY NINE POINT FIVE EIGHT NINE TO YIELD SEVEN POINT ONE EIGHT THREE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE HUNDRED THIRTY BASIS POINTS ABOVE TREASURYS RATED B. A. ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND TRIPLE B. BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY D. S. P. GROUP INCORPORATED INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT FOURTEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER AND COMPANY AND COWEN AND COMPANY KAISER ALUMINUM CORPORATION EIGHT MILLION CONVERTIBLE PREFERRED SHARES PRICED AT ELEVEN DOLLARS AND SEVENTY FIVE CENTS EACH ACCORDING TO THE COMPANY EACH SHARE BEARS A CUMULATIVE ANNUAL DIVIDEND OF ZERO DOLLARS AND NINETY SEVEN CENTS THE SHARES ARE SUBJECT TO MANDATORY CONVERSION INTO KAISER COMMON STOCK NO LATER THAN DECEMBER THIRTY FIRST NINETEEN NINETY SEVEN UNDERWRITERS ARE MERRILL LYNCH AND COMPANY BEAR STEARNS AND COMPANY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION PAINEWEBBER INCORPORATED AND SALOMON BROTHERS INCORPORATED SOFTDESK INCORPORATED INITIAL PUBLIC OFFERING OF TWO MILLION COMMON SHARES PRICED AT ELEVEN DOLLARS AND FIFTY CENTS EACH ACCORDING TO THE COMPANY HAMBRECHT AND QUIST INCORPORATED AND WESSELS ARNOLD AND HENDERSON ARE THE MANAGING UNDERWRITERS FEDERAL NATIONAL MORTGAGE ASSOCIATION FIVE HUNDRED POINT FIVE MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS AND COMPANY THE OFFERING SERIES NINETEEN NINETY FOUR TO FORTY ONE IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT FIVE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY SEVEN MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION FIVE HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY C. S. FIRST BOSTON INCORPORATED THE OFFERING SERIES NINETEEN NINETY FOUR TO THIRTY NINE IS BACKED BY THE AGENCY'S THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY SEVEN MONTHS DEUTSCHE BAU UND BODEN BANK A. G. GERMANY TWO HUNDRED MILLION MARKS OF FLOATING RATE EURONOTES DUE MARCH EIGHTEENTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED POINT OH EIGHT VIA DEUTSCHE GENOSSENSCHAFTSBANK PAYABLE SEMIANNUALLY AT ZERO POINT ZERO SIX TWO FIVE POINT OVER SIX MONTH FRANKFURT INTERBANK OFFERED RATE FEES ZERO POINT TWO LESS ZERO POINT ZERO TWO FOR LEAD MANAGER DRESDNER BANK A. G. GERMANY ONE HUNDRED MILLION DOLLARS OF SUBORDINATED COLLARED FLOATING RATE EURONOTES DUE MARCH TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE NINETY NINE POINT NINE FOR OWN ACCOUNT WITH LEHMAN BROTHERS INTERNATIONAL PAYABLE SEMIANNUALLY AT SIX MONTH U. S. LONDON INTERBANK OFFERED RATE LESS ZERO POINT TWO FIVE POINT MINIMUM COUPON FIVE POINT ONE TWO FIVE PERCENT MAXIMUM EIGHT POINT ONE TWO FIVE PERCENT FEES ZERO POINT FIVE HAMBURG GERMANY MUNICIPALITY FIFTY MILLION MARKS OF BONDS DUE NOVEMBER TWENTY NINTH TWO THOUSAND EIGHTEEN AT ISSUE PRICE NINETY NINE POINT SIX VIA MERRILL LYNCH BANK A. G. BONDS WILL TRADE INTERCHANGEABLY WITH FIFTY MILLION MARKS OF IDENTICAL BONDS OUTSTANDING TERMS UNCHANGED COUPON SIX POINT OH EIGHT PERCENT FIRST TEN YEARS THEREAFTER SIX POINT EIGHT FIVE PERCENT PUT OPTION EXERCISABLE ANNUALLY AT PAR AFTER YEAR TEN FEES UNDISCLOSED LLOYDS BANK P. L. C. U. K. FOUR HUNDRED MILLION POUNDS OF SEVEN POINT THREE SEVEN FIVE PERCENT SURBORDINATED EUROBONDS DUE MARCH ELEVENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT TWO ONE THREE POUNDS VIA SALOMON BROTHERS INTERNATIONAL LIMITED REOFFERED AT NINETY NINE POINT SIX SIX THREE TO YIELD SEVEN POINT FOUR TWO FOUR PERCENT A MARGIN OF SEVENTY TWO BASIS POINTS OVER COMPARABLE U. K. GILT FEES TWO PETROLEOS MEXICANOS S. A. MEXICO THREE HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE MARCH EIGHTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT THREE FOUR VIA J. P. MORGAN SECURITIES LIMITED PAYABLE QUARTERLY AT THREE MONTH DOLLAR LIBOR PLUS ONE POINT TO YIELD LIBOR PLUS ONE POINT ONE FIVE POINT FEES ZERO POINT FIVE THIS ENGINEERING TRANSPORTATION AND CONSTRUCTION CONCERN CREATED AN OFFICE OF THE CHAIRMAN AND NAMED FIVE EXECUTIVES TO SHARE THE POST WILLIAM AGEE FIFTY SIX YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER GUNNAR SARSTEN FIFTY SEVEN WHO WILL ALSO BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF M. K. INTERNATIONAL THOMAS ZARGES FORTY FIVE PRESIDENT OF THE COMPANY'S CONSTRUCTION AND ENGINEERING GROUP STEPHEN HANKS FORTY THREE EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION AND ROBERT TINSTMAN FORTY SEVEN PRESIDENT OF THE COMPANY'S MINING GROUP SOUTHERN UNION COMPANY AUSTIN TEXAS DECLARED A THREE FOR TWO STOCK SPLIT IN THE FORM OF A FIFTY PERCENT STOCK DIVIDEND PAYABLE MARCH NINTH TO HOLDERS OF RECORD FEBRUARY TWENTY THIRD THE NATURAL GAS DISTRIBUTOR ALSO SAID IT WILL IMPLEMENT A FIVE PERCENT ANNUAL STOCK DIVIDEND WITH PAYMENT COINCIDING WITH ITS MAY ANNUAL SHAREHOLDERS' MEETING SOUTHERN SAID IT WILL ANNOUNCE SPECIFICS OF THE DIVIDEND NO LATER THAN THE DATE OF THE SHAREHOLDERS' MEETING FOLLOWING RUMORS OF A BOARDROOM FIGHT AND CRITICISM FROM SOME POLITICIANS JOHN CAHILL WILL LEAVE HIS POST AS CHAIRMAN OF BRITISH AEROSPACE P. L. C. MR. CAHILL LEAVES THE POSITION AFTER SERVING ONLY TWO YEARS OF A FIVE YEAR CONTRACT IN HIS PLACE BRITISH AEROSPACE APPOINTED AN AMERICAN BOB BAUMAN WHO IS CHIEF EXECUTIVE OF SMITHKLINE BEECHAM P. L. C. MR. BAUMAN SIXTY TWO YEARS OLD PLANS TO LEAVE SMITHKLINE AN ANGLO AMERICAN HEALTH CARE COMPANY IN APRIL WHEN HE WILL MOVE TO HIS NEW POST WHILE A STATEMENT ISSUED LATE FRIDAY BY BRITISH AEROSPACE PORTRAYED MR. CAHILL'S EARLY DEPARTURE AS AMICABLE THE U. K. MEDIA SPECULATED THAT HIS EXIT STEMS FROM A BOARDROOM BATTLE OVER THE FUTURE OF THE COMPANY'S DEFENSE BUSINESS IN ADDITION MR. CAHILL HAS COME UNDER ATTACK RECENTLY FROM SOME BRITISH PARLIAMENTARIANS BECAUSE OF HIS GENEROUS CONTRACT AND HIS REFUSAL FOR TAX PURPOSES TO LIVE IN THE U. K. AN ENGLISHMAN MR. CAHILL HAS HOMES IN BOTH FLORIDA AND NEW ENGLAND IN ITS STATEMENT BRITISH AEROSPACE SAID THAT SUBSTANTIAL PROGRESS HAS BEEN MADE IN SEVERAL KEY AREAS OF THE BUSINESS AND THAT QUOTE THE BOARD AND JOHN CAHILL BELIEVE IT'S AN APPROPRIATE MOMENT FOR HIM TO RELINQUISH THE CHAIRMANSHIP TO ALLOW HIM TO SPEND MORE TIME WITH HIS FAMILY IN THE U. S. QUOTE HE LEAVES THE COMPANY WITH ABOUT FOUR POINT SEVEN MILLION DOLLARS IN SHARE OPTIONS WHILE MR. CAHILL EARNED EIGHT HUNDRED THOUSAND DOLLARS A YEAR PLUS OPTIONS MR. BAUMAN WILL SERVE ONLY AS NON EXECUTIVE CHAIRMAN AND RECEIVE A SALARY OF FIFTY THOUSAND POUNDS SEVENTY THREE THOUSAND DOLLARS A YEAR PLUS SHARE OPTIONS MR. BAUMAN TAKES CHARGE OF A CONGLOMERATE WITH ACTIVITIES IN DEFENSE CIVIL AEROSPACE AND PROPERTY DEVELOPMENT THAT TOGETHER GENERATE ANNUAL SALES OF SIX BILLION POUNDS THE COMPANY HOWEVER IS UNDERGOING CHANGE TWO WEEKS AGO BRITISH AEROSPACE STUNNED THE MARKETS BY ANNOUNCING THE SALE FOR EIGHT HUNDRED MILLION POUNDS OF ITS ROVER AUTOMOBILES UNIT TO GERMANY'S BAYERISCHE MOTOREN WERKE A. G. THE U. K. COMPANY HAS ALSO MOVED TO RESTRUCTURE ITS AEROSPACE ACTIVITIES AND IT IS ENJOYING STRONG ORDERS AND RESULTS IN ITS DEFENSE ACTIVITIES THE FACT THAT THE COMPANY'S BOARD GAVE AN AMERICAN THE CONTROLS OF ONE OF THE CROWN JEWELS OF BRITISH INDUSTRY SHOWS THEIR HIGH ESTEEM FOR MR. BAUMAN HIS EXTENSIVE RESUME INCLUDES CURRENT POSTS ON THE BOARDS OF CAPITAL CITIES SLASH A. B. C. INCORPORATED AND REUTERS HOLDINGS P. L. C. HE ALSO SERVED AS CHAIRMAN OF AVCO CORPORATION AN AEROSPACE CONCERN THAT IS A MAJOR ENGINEAND PARTS SUPPLIER TO BRITISH AEROSPACE APPOINTED TO THE CHAIRMAN'S POST AT BEECHAM P. L. C. IN NINETEEN EIGHTY SIX MR. BAUMAN LACKED EXPERIENCE IN PHARMACEUTICALS HOWEVER HE TOOK ADVANTAGE OF HIS OUTSIDER'S STATUS BY BUCKING CONVENTIONAL WISDOM AGREEING TO A TRANSATLANTIC MERGER WITH SMITHKLINE BECKMAN CORPORATION OF THE U. S. MR. BAUMAN HAS WORKED HARD TO ESTABLISH GOOD RELATIONS WITH PHARMACEUTICAL INDUSTRY ANALYSTS AND INVESTORS A FACT NOT LOST ON AEROSPACE ANALYSTS WHO PRAISED HIS REPUTATION AT SMITHKLINE INFLATION IN BRAZIL'S MAJOR CITIES SLOWED SOMEWHAT IN JANUARY BUT THE RATE REMAINS ALARMINGLY HIGH AND HAS FAR TO DROP BEFORE THE COUNTRY EMERGES FROM ITS DEVASTATING GRIP ECONOMISTS SAY QUOTE INFLATION IS LOWER QUOTE SAID FORMER FINANCE MINISTER MAILSON DA NOBREGA QUOTE BUT IT'S NOT A TREND IT'S MORE A FACTOR OF SEASONAL ADJUSTMENTS ECONOMIST CARLOS LONGO AGREED THERE IS NO REASON FOR INFLATION TO GO AWAY THE FUNDAMENTAL REASONS ARE STILL CAUSING IT THE INFLATION NEWS ON FRIDAY CAME TWO DAYS AFTER CONGRESSIONAL APPROVAL OF AN EMERGENCY FUND TO HELP THE GOVERNMENT BALANCE ITS BUDGET DEFICIT SPENDING IS CONSIDERED THE LEADING CAUSE OF INFLATION AND THE VOTE WAS HAILED AS A MAJOR STEP TOWARD COMBATING IT FEW EXPECTED GOOD NEWS SO SOON THIS WAS A SURPRISE SAID JOSE DE MENEZES BERENGUER NETO VICE PRESIDENT OF CAPITAL MARKETS AT I. N. G. BANK IN SAO PAULO WE WERE EXPECTING HIGHER INFLATION THE GOVERNMENT'S NATIONAL INSTITUTE OF GEOGRAPHY AND STATISTICS SAID THE INFLATION RATE IN SAO PAULO WAS THIRTY NINE POINT SEVEN PERCENT FROM JANUARY SEVENTH TO FEBRUARY FOURTH DOWN FROM THE FORTY POINT FIVE PERCENT REPORTED BETWEEN DECEMBER THIRTIETH AND JANUARY TWENTY EIGHTH THE INSTITUTE SAID INFLATION IN RIO DE JANEIRO FOR THE CORRESPONDING PERIOD WAS FORTY POINT EIGHT PERCENT DOWN FROM FORTY TWO POINT EIGHT PERCENT MEANWHILE THE UNIVERSITY OF SAO PAULO'S ECONOMIC RESEARCH INSTITUTE REPORTED INFLATION AT THIRTY EIGHT POINT FIVE PERCENT FROM JANUARY EIGHTH TO FEBRUARY SEVENTH DOWN FROM THE FORTY POINT THREE PERCENT REGISTERED FROM JANUARY FIRST TO THIRTY ONE ECONOMIST ANTONIO CORREA DE LACERDA SAID THE LOWER RATES ARE QUOTE CERTAINLY POSITIVE PSYCHOLOGICALLY BUT THEY'RE REALLY A BIT OF A FLUKE ECONOMISTS SAY INFLATION WAS FUELED IN DECEMBER AND JANUARY BY A VARIETY OF SEASONAL CAUSES INCLUDING HOLIDAY BONUSES THAT RESULTED IN HIGHER SPENDING SPECULATION CAUSED BY EXPECTATIONS OF HIGHER INFLATION AND HIGHER FOOD PRICES CAUSED BY A SMALLER HARVEST IN THE ABSENCE OF THOSE FACTORS THE RATE SUBSIDED SOMEWHAT SAID JUAREZ RIZZIERI HEAD OF THE ECONOMIC RESEARCH INSTITUTE BRAZIL IS AVERTING EVEN WORSE INFLATION CONTENDS MR. LACERDA THE ECONOMIST BECAUSE OF CONGRESSIONAL PASSAGE OF THE SIXTEEN BILLION DOLLAR EMERGENCY FUND LAST WEEK IF IT HADN'T BEEN APPROVED THINGS WOULD BE WORSE THAN EVER HE SAID HE THINKS THAT IF IT HADN'T PASSED FOREIGN MINISTER FERNANDO HENRIQUE CARDOSO PROBABLY WOULD HAVE RESIGNED RESULTING IN ECONOMIC UNCERTAINTY MR. CARDOSO INSISTED THAT THE EMERGENCY FUND IS A FUNDAMENTAL STEPPING STONE TO BUILDING AN ECONOMY FREE OF THE INFLATION THAT HAS STEADILY WORSENED FOR A GENERATION MOST ECONOMISTS EXPECT TO SEE INFLATION OVER FORTY ONE PERCENT AGAIN IN MARCH AFTER THE RESERVE VALUE UNIT OR URV IS INSTALLED THE URV WILL REPLACE ELEVEN INFLATION INDEXES THAT ADJUST PRICES WAGES TAXES INTEREST RATES AND CONTRACTS EVERYTHING IN BRAZIL'S ECONOMY IS INDEXED TO ACCOUNT FOR INFLATION A LOT OF COMPANIES WILL RAISE PRICES BECAUSE THEY DON'T KNOW HOW THE URV IS GOING TO WORK I. N. G. BANK'S MR. BERENGUER SAYS BUT HE ADDS THAT ONCE THE URV AND THE REST OF THE GOVERNMENT'S PLAN ARE IN EFFECT INFLATION COULD DROP SIGNIFICANTLY C. B. S. INCORPORATED STRUCK A FIVE YEAR DEAL WITH THE SOUTHEASTERN CONFERENCE TO TELEVISE FOOTBALL AND BASKETBALL YIELDING THE CONFERENCE AN ESTIMATED ONE HUNDRED MILLION DOLLARS AND POSSIBLY SETTING OFF A SERIES OF OTHER NETWORK DEALS THAT WILL CHANGE THE TELEVISION LANDSCAPE OF COLLEGE FOOTBALL FOR C. B. S. IT REPRESENTS A STEP TO FILL THE VOID LEFT BY ITS LOSS OF NATIONAL FOOTBALL LEAGUE RIGHTS QUOTE THERE WAS A BIG IMPACT WHEN C. B. S. LOST PRO FOOTBALL TO FOX AND THEY WERE LOOKING FOR SOMETHING FROM A COLLEGE STANDPOINT QUOTE SAID MARK WOMACK THE CONFERENCE'S ASSOCIATE COMMISSIONER FOR US IT WILL GREATLY ENHANCE OUR NATIONAL EXPOSURE THE CONFERENCE INCLUDES SUCH FOOTBALL POWERS AS THE UNIVERSITY OF FLORIDA AND AUBURN UNIVERSITY THE CONTRACT'S FOOTBALL PORTION WHICH ACCOUNTS FOR AN ESTIMATED EIGHTY FIVE MILLION DOLLARS OF THE TOTAL VALUE DOESN'T TAKE EFFECT UNTIL NINETEEN NINETY SIX BUT IT HAS AN IMMEDIATE IMPACT ON THE COLLEGE FOOTBALL ASSOCIATION OR C. F. A. WHICH SINCE NINETEEN EIGHTY FOUR HAS NEGOTIATED NETWORK T. V. CONTRACTS ON BEHALF OF SIXTY THREE MEMBER SCHOOLS THE BOLTING OF THE TWELVE SOUTHEASTERN CONFERENCE SCHOOLS JEOPARDIZES THE ABILITY OF THE C. F. A. TO KEEP OTHER MEMBERS UNDER ITS UMBRELLA NOW THE OTHER CONFERENCES ARE SAYING GEE WHAT ABOUT ME SAID DAVID DOWNS AN A. B. C. SPORTS VICE PRESIDENT A. B. C. AND ITS SISTER CABLE NETWORK E. S. P. N. CURRENTLY PAY THE C. F. A. ABOUT SIXTY MILLION DOLLARS A YEAR FOR T. V. RIGHTS UNDER A CONTRACT EXPIRING IN NINETEEN NINETY FIVE THE TWO CAPITAL CITIES SLASH A. B. C. INCORPORATED UNITS HAD REACHED A TENTATIVE AGREEMENT WITH THE C. F. A. TO EXTEND THEIR PACTS TO TWO THOUSAND AT A RATE PAYING A COMBINED SEVENTY MILLION DOLLARS A YEAR BUT C. B. S.'S AGREEMENT WITH THE SOUTHEASTERN CONFERENCE WHICH HAS TEAMS ACCOUNTING FOR ABOUT TWENTY FIVE PERCENT OF C. F. A. TELECASTS SCRAPPED THAT A. B. C. AND E. S. P. N. MAY NOW WIND UP NEGOTIATING DEALS WITH INDIVIDUAL CONFERENCES WHICH LIKE THE SOUTHEASTERN CONFERENCE THINK THEY CAN DO BETTER FOR THEMSELVES SOME ARE EXPLORING POSSIBLE MERGERS OR ALLIANCES TO INCREASE THEIR T. V. NEGOTIATING CLOUT THE SOUTHWEST AND BIG EIGHT CONFERENCES ARE CONSIDERED PRIME CANDIDATES FOR AFFILIATION AT THIS POINT WE FEEL IT'S FAIR GAME TO LISTEN TO WHATEVER THE CONFERENCES BRING TO US INDIVIDUALLY A. B. C.'S MR. DOWNS SAID BUT WE'LL LISTEN TO THE C. F. A. TOO C. B. S. HAS ALREADY MADE OVERTURES TO THE BIG EAST A REPORTED FIVE YEAR FIFTY FIVE MILLION DOLLARS TO SIXTY MILLION DOLLAR OFFER TO BROADCAST ITS FOOTBALL GAMES ALSO BEGINNING IN NINETEEN NINETY SIX C. B. S. IS BELIEVED TO BE INTERESTED IN SPLITTING UP SATURDAY AFTERNOON FOOTBALL GAMES REGIONALLY BETWEEN THE SOUTHEASTERN CONFERENCE AND BIG EAST WHICH HAS SEVERAL GLAMOR TEAMS INCLUDING THE UNIVERSITY OF MIAMI C. B. S. WHICH CURRENTLY BROADCASTS BIG EAST BASKETBALL GAMES WOULD ALSO REPORTEDLY PAY THE CONFERENCE ANOTHER THIRTEEN MILLION DOLLARS TO EXTEND ITS HOOPS CONTRACT BY SIX YEARS BIG EAST OFFICIALS WOULDN'T COMMENT C. B. S. OFFICIALS ALSO WOULDN'T COMMENT ON THE STATUS OF THE BIG EAST OR THE SOUTHEASTERN CONFERENCE WHOSE AGREEMENT WAS DISCLOSED BY THE CONFERENCE THE C. F. A. MAY MEET WITH REPRESENTATIVES OF CONFERENCES AND T. V. NETWORKS EARLY THIS WEEK BUT NOTHING FIRM HAS BEEN SET ACCORDING TO A C. F. A. SPOKESMAN IT'S A VERY FLUID SITUATION NOW HE SAID SWISS BANKERS ARE BATTLING A PROPOSED TAX THEY SAY COULD ENDANGER SWITZERLAND'S PRIVATE BANKING BUSINESS THE BANKERS SAY NON SWISS CUSTOMERS SHOULD BE EXEMPT FROM THE PROPOSED SIX POINT FIVE PERCENT LEVY ON PRIVATE BANKING SERVICES OTHERWISE MANY FOREIGN CLIENTS ARE LIKELY TO SHIFT THEIR INVESTMENT FUNDS TO THE WORLD'S OTHER FINANCIAL CENTERS SWITZERLAND HAS A LOT TO LOSE ITS BANKERS SAY HANS J. BAER CHAIRMAN OF BANK JULIUS BAER ESTIMATES THE VALUE OF ASSETS MANAGED BY SWITZERLAND'S BANKS FOR NON SWISS PRIVATE CLIENTS AT ONE POINT TWO TRILLION SWISS FRANCS EIGHT HUNDRED ELEVEN POINT SEVEN BILLION DOLLARS WHICH IS ABOUT A THIRTY FIVE PERCENT TO FORTY PERCENT SHARE OF THE WORLD'S OFFSHORE PRIVATE BANKING BUSINESS HE SAYS QUOTE SUCH A PERCENTAGE SHOULD NOT BE JEOPARDIZED QUOTE MR. BAER SAYS BANKERS SAY IT WOULD BE SWITZERLAND'S STANDING AS A FINANCIAL CENTER AND NOT THE COUNTRY'S INTERNATIONAL BANKS THEMSELVES THAT WOULD SUFFER MOST FROM ANY FLIGHT OF FOREIGN CAPITAL THAT MIGHT RESULT FROM THE NEW TAX FOR THEIR PART SWISS BANKS COULD MANAGE CLIENTS' ASSETS THROUGH THEIR FOREIGN SUBSIDIARIES BANKERS SAY THE SWISS BANKERS' ASSOCIATION HAS CALLED FOR AN EXEMPTION FOR PORTFOLIO MANAGEMENT SERVICES FOR CLIENTS RESIDING OUTSIDE SWITZERLAND SAYING A TAX ON SUCH CLIENTS WOULD HAVE FATAL CONSEQUENCES IN A NATIONAL REFERENDUM NOVEMBER TWENTY EIGHTH SWISS VOTERS APPROVED THE INTRODUCTION OF A VALUE ADDED TAX SYSTEM UNDER WHICH THE NATION WILL FOR THE FIRST TIME TAX SERVICES THE NEW STRUCTURE IS EXPECTED TO GO INTO EFFECT JANUARY FIRST NINETEEN NINETY FIVE AND IS DESIGNED TO CREATE A FAIRER SYSTEM THAT BY INCLUDING SERVICES IS MORE COMPATIBLE WITH TAX POLICIES ELSEWHERE IN EUROPE NATIONS IN THE EUROPEAN UNION OF WHICH SWITZERLAND ISN'T A MEMBER DON'T TAX PORTFOLIO MANAGEMENT SERVICES FOR CUSTOMERS BASED OUTSIDE THE E. U. THE BANKERS' ASSOCIATION SAYS IN SHORT THERE IS NO VAT IN THE E. U. ON SERVICES TO CLIENTS BASED IN THE AMERICAS ASIA AFRICA THE MIDDLE EAST OR EUROPEAN COUNTRIES OUTSIDE THE TRADING BLOC SEEKING A SIMILAR ARRANGEMENT SWITZERLAND'S BANKERS WHILE NOT CHALLENGING THE PROPOSED VAT LEVY ON SERVICES TO DOMESTIC CUSTOMERS STRONGLY OPPOSE THE INCLUSION OF CLIENTS BASED ABROAD IF SWITZERLAND IMPOSES A TAX ON THOSE CLIENTS THE ASSOCIATION SAYS IT IS TO BE EXPECTED THAT A CONSIDERABLE NUMBER OF FOREIGN PRIVATE CLIENTS WILL NOT ACCEPT THE NEW TAX AND WILL GIVE THEIR ASSETS TO A BANK OUTSIDE SWITZERLAND TO MANAGE FRANCOIS GENDRE ASSISTANT DIRECTOR IN THE FEDERAL TAX DEPARTMENT SAYS HIS AGENCY IS WELL AWARE OF THE PROBLEM BUT A DECISION ON EXEMPTING SERVICES TO FOREIGN CLIENTS CAN BE MADE ONLY BY THE FEDERAL COUNCIL THE GROUP OF SEVEN MINISTERS THAT GOVERNS SWITZERLAND AN ANSWER CAN BE EXPECTED BEFORE SUMMER HE ADDED MEANWHILE SAYS BENEDICT HENTSCH PARTNER AT GENEVAN PRIVATE BANKER DARIER HENTSCH AND COMPANY WE ARE DOING OUR BEST TO PERSUADE THE GOVERNMENT THAT DECIDING OUR WAY WOULD BE IN THE BEST INTERESTS OF SWITZERLAND SENIOR PENTAGON OFFICIALS ARE CONTEMPLATING SELLING OVERSEAS A LARGE PART OF THE MILITARY'S COLD WAR INVENTORY OF HIGH PERFORMANCE WEAPONRY THEY ARGUE THAT THE NEW APPROACH WOULD STRENGTHEN U. S. ALLIES IMPROVE U. S. MILITARY READINESS AND HELP SUSTAIN THE U. S. DEFENSE INDUSTRY ALL WITHOUT COSTING THE TAXPAYER A PENNY BUT IF IMPLEMENTED THE NEW POLICY WOULD PROVOKE CHARGES THAT THE U. S. IS CONTRIBUTING TO THE PROLIFERATION OF HIGH TECH WEAPONS USING POORER COUNTRIES TO SUPPORT ITS DEFENSE BUDGET AND PERHAPS SPARKING ARMS RACES IN NEW REGIONS SUCH AS SOUTH AMERICA SEVERAL NATIONS ON THAT CONTINENT AS WELL AS IN SOUTHEAST ASIA AND NORTH AFRICA ARE BEING LOOKED AT AS POTENTIAL BUYERS UNDER THE PROGRAM UNDER THE CONTEMPLATED PLAN THE PENTAGON RATHER THAN MOTHBALL PART OF THE INVENTORY OF JETS SHIPS AND ARMORED VEHICLES WOULD SELL IT OVERSEAS AND USE THE PROCEEDS TO BUY NEWER VERSIONS OF THE SAME WEAPONS THE SIZE OF THE POTENTIAL SALES IS HUGE THE FIRST STEP IN THE PROGRAM A KIND OF TEST RUN WOULD INVOLVE SELLING FOUR HUNDRED OF THE AIR FORCE'S F. SIXTEEN FIGHTERS FOR ABOUT FOUR POINT EIGHT BILLION DOLLARS QUOTE THIS ISN'T A STRATEGY TO GET RID OF OLDER EXCESS STUFF IT'S SOME OF OUR BEST STUFF QUOTE THAT WOULD BE SOLD GENERAL MICHAEL CARNS THE VICE CHIEF OF STAFF OF THE AIR FORCE AND THE LEADING PROPONENT OF THE IDEA SAID IN AN INTERVIEW IT IS TO BUILD UP OUR ALLIES GET THEM TO DO SOME OF THE HEAVY LIFTING AND TO USE THE PROCEEDS TO HELP OUR OWN MODERNIZATION AT A LEVEL WE CURRENTLY CAN'T AFFORD THE PROPOSAL ALREADY HAS RECEIVED A POSITIVE RESPONSE FROM DEFENSE SECRETARY WILLIAM PERRY FROM THE STATE DEPARTMENT AND FROM SOME IN THE DEFENSE INDUSTRY GENERAL CARNS SAID THE PLAN WOULDN'T REQUIRE LEGISLATIVE CHANGES BUT WOULD CLEARLY NEED THE EXPLICIT BACKING OF THE ADMINISTRATION AND CONGRESS CONGRESSIONAL APPROVAL WOULD BE NEEDED FOR THE ARMS SALES AND FOR THE PENTAGON TO SPEND THE PROCEEDS THE PENTAGON HAS OCCASIONALLY CONDUCTED HIGH TECH SALES OF THIS SORT IN THE PAST MOST NOTABLY IN A NINETEEN NINETY ONE AIR FORCE SALE OF TWENTY FOUR F. FIFTEEN C.S TO SAUDI ARABIA THAT ENABLED THE AIR FORCE TO BUY SIX STATE OF THE ART F. FIFTEEN E.S BUT GENERALLY THE PENTAGON HAS SOLD OFF ITS OLDEST AND LEAST VALUED GEAR DISCUSSING THE FIRST STEPS IN THE PROGRAM GENERAL CARNS A FORMER FIGHTER PILOT WHO HOLDS A MASTER'S DEGREE FROM HARVARD BUSINESS SCHOOL ESTIMATED THAT EACH OF THE FOUR HUNDRED F. SIXTEENS COULD BE SOLD FOR TWELVE MILLION DOLLARS AFTER BEING UPGRADED THE MODIFICATIONS TO THEIR ENGINES STRUCTURE AND COCKPITS WOULD COST ROUGHLY TWO BILLION DOLLARS LEAVING THE AIR FORCE MORE THAN TWO BILLION DOLLARS TO BUY SEVENTY TO ONE HUNDRED NEW F. SIXTEENS UNDER THE PLAN THESE WOULD BE USED IN THE LATE NINETEEN NINETIES TO REPLACE RETIRING F. ONE HUNDRED ELEVENS GENERAL CARNS SAID THE BASIC FLYAWAY COST OF A NEW F. SIXTEEN CURRENTLY RUNS ABOUT TWENTY MILLION DOLLARS FOREIGN CUSTOMERS TYPICALLY PAY SEVERAL MILLION DOLLARS MORE FOR SPECIAL WEAPONRY PARTS AND SUPPORT COSTS A LOCKHEED SPOKESMAN SAID IT GIVES ME BRAND NEW WARFIGHTING AIRPLANES AT NO COST TO THE TAXPAYER GENERAL CARNS SAID ON A LARGE ENOUGH SCALE SALES OF THIS SORT WOULD HELP THE PENTAGON GET THROUGH THE PROCUREMENT SQUEEZE THAT FINANCIAL ANALYSTS PREDICT FOR THE LATE NINETEEN NINETIES THE PENTAGON'S OFFICIAL ESTIMATE IS THAT FROM FISCAL NINETEEN NINETY SIX THROUGH FISCAL NINETEEN NINETY NINE ITS COSTS WILL BE TWENTY BILLION DOLLARS HIGHER THAN THE BUDGETS PLANNED FOR THAT PERIOD THE DEFENSE INDUSTRY WHICH HAS OBJECTED IN THE PAST TO SOME PENTAGON SELL OFFS OF OLDER INVENTORY WILL SUPPORT THIS PLAN BECAUSE THE SALES ULTIMATELY WOULD PRODUCE NEW WORK FOR IT THE GENERAL ARGUED FIRST HE SAID THE INDUSTRY WOULD BE ABLE TO UPGRADE THE GEAR TO PREPARE IT FOR MARKETS THAT IT MIGHT NOT OTHERWISE PENETRATE THEN WHEN THE PENTAGON HAD THE CASH IN HAND THE INDUSTRY WOULD RECEIVE NEW ORDERS DWAIN MAYFIELD VICE PRESIDENT MARKETING OF LOCKHEED CORPORATION'S FORT WORTH TEXAS UNIT WHICH MAKES THE F. SIXTEEN AGREED WITH THAT ASSESSMENT SAYING WE'VE BEEN NEEDING SOMETHING LIKE THIS IT'S AN INNOVATIVE PLAN MR. MAYFIELD WHO WAS BRIEFED ON THE PENTAGON PLAN LAST WEEK ADDED QUOTE I THINK IT WILL HAPPEN THERE ARE TOO MANY UPSIDES TO THE PLAN FOR IT NOT TO HAPPEN OTHER ADVANCED AIRCRAFT THAT COULD BE SOLD UNDER THE PLAN GENERAL CARNS SAID ARE BOEING COMPANY'S K. C. ONE HUNDRED THIRTY FIVE TANKERS AND LOCKHEED'S C. ONE HUNDRED THIRTY CARGO PLANES IN ADDITION HE SAID THE ARMY PROBABLY COULD PURSUE SIMILAR PLANS WITH ITS BEST TANKS AND ARMORED PERSONNEL CARRIERS WHEN ASKED ABOUT THE POSSIBLE NEW POLICY THOMAS CARDAMONE JUNIOR EDITOR OF ARMS TRADE NEWS CALLED IT A SHORT SIGHTED VERY CASH FLOW ORIENTED APPROACH IT CREATES INSTABILITY AND SUCKS CAPITAL AWAY FROM INFRASTRUCTURE HE SAID IT MAKES BAD FOREIGN POLICY ANYTIME A COUNTRY BUYS A HIGH TECH AIRCRAFT LIKE THE F. SIXTEEN IT MAKES THEIR NEIGHBORS NERVOUS ARMS TRADE NEWS IS PUBLISHED BY THE COUNCIL FOR A LIVEABLE WORLD WHICH ADVOCATES CUTTING THE U. S. DEFENSE BUDGET BUT GENERAL CARNS DISMISSED THOSE CONCERNS SAYING QUOTE WE ARE WORKING WITH COALITION PARTNERS WHO SHARE OUR VALUES WE AREN'T PROLIFERATING ANYTHING THEY WOULDN'T OTHERWISE BUY AMONG THE COUNTRIES THAT ARE BEING CONTEMPLATED AS POTENTIAL BUYERS OF THE F. SIXTEENS INDUSTRY AND PENTAGON OFFICIALS SAID ARE THAILAND SINGAPORE EGYPT AND SOUTH KOREA WHICH ALREADY POSSESS SOME AS WELL AS INDONESIA MALAYSIA NEW ZEALAND MOROCCO AND TUNISIA WHICH DON'T IN ADDITION CHILE IS BELIEVED TO BE EAGER TO BUY F. SIXTEENS BUT IF IT DID ARGENTINA MIGHT WANT SOME WHICH WOULD DRAW OBJECTIONS FROM THE BRITISH BECAUSE OF THE CONTINUING DISPUTE OVER THE FALKLAND ISLANDS THE PHILIPPINES IS BELIEVED TO BE INTERESTED BUT PENTAGON OFFICIALS PRIVATELY DOUBT THAT THE ISLAND NATION NEEDS HIGH PERFORMANCE AIRCRAFT IN ADDITION TO MAKING FINANCIAL SENSE GENERAL CARNS ARGUED THE INVENTORY SELL OFF MAKES SOUND MILITARY AND NATIONAL STRATEGY THE EXPERIENCE OF THE PERSIAN GULF WAR HE SAID WAS THAT THE U. S.'S COALITION PARTNERS LACKED THE HARDWARE TO PERFORM MANY IMPORTANT MISSIONS SUCH AS ACHIEVING AIR SUPERIORITY OR PROVIDING AIRLIFT COALITION WARFARE IS HERE TO STAY HE SAID WE OUGHT TO ENABLE SOME OF OUR POTENTIAL COALITION ALLIES TO PARTICIPATE IN A ROBUST WAY HAVING ALLIES USE U. S. MADE EQUIPMENT ALSO WOULD MAKE IT EASIER FOR U. S. FORCES TO OPERATE WITH THEM AND TO USE THEIR INFRASTRUCTURE WHEN DEPLOYED ABROAD THAT WOULD PARTIALLY COMPENSATE FOR THE LOSS OF ACCESS AND PRESENCE RESULTING FROM THE REDUCTION OF U. S. FORCES DEPLOYED OVERSEAS HE SAID VERNON B. SCHWARTZ MAY SOON BECOME ANOTHER CASUALTY OF A CAMPAIGN BY CALIFORNIA'S STATE EMPLOYEE PENSION PLAN TO EXERT ITS INFLUENCE IN U. S. EXECUTIVE SUITES MR. SCHWARTZ CHAIRMAN AND CHIEF EXECUTIVE OF CATELLUS DEVELOPMENT CORPORATION A BIG REAL ESTATE CONCERN IS EXPECTED TO STEP DOWN SOON AS A RESULT OF BOARD OPPOSITION LED BY THE PENSION PLAN KNOWN AS CALPERS ACCORDING TO DIRECTORS AND OTHERS FAMILIAR WITH THE COMPANY CALPERS THE NATION'S BIGGEST STATE EMPLOYEE PENSION PLAN WITH ASSETS TOTALING ABOUT EIGHTY BILLION DOLLARS OWNS FORTY PERCENT OF CATELLUS AND DIRECTLY CONTROLS TWO SEATS ON ITS BOARD MR. SCHWARTZ DECLINED TO COMMENT AS DID CALPERS OFFICALS ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY CATELLUS DIRECTORS VOTED TO OUST MR. SCHWARTZ AT A MEETING EARLIER THIS MONTH THE DIRECTORS LATER AGREED TO A PROPOSAL FROM MR. SCHWARTZ THAT HE BE GIVEN A FEW MONTHS TO PHASE HIMSELF OUT OF THE COMPANY CATELLUS DIRECTORS SAID MUCH OF THE OPPOSITION TO MR. SCHWARTZ WAS LED BY TOM C. STICKEL A FORMER FINANCIAL EXECUTIVE NOMINATED TO THE BOARD BY CALPERS EARLY LAST YEAR ALTHOUGH MR. STICKEL DECLINED TO COMMENT PEOPLE CLOSE TO THE BOARD SAID THAT SHORTLY AFTER BECOMING A DIRECTOR MR. STICKEL BEGAN OPENLY OPPOSING MR. SCHWARTZ'S STRATEGIES FOR TURNING AROUND THE REAL ESTATE CONCERN WHICH HAD A NET LOSS OF THIRTY FOUR POINT FOUR MILLION DOLLARS FOR THE NINE MONTHS ENDED SEPTEMBER THIRTIETH MORE RECENTLY OPPOSITION TO MR. SCHWARTZ HAS BEEN SPEARHEADED BY TWO OTHER DIRECTORS BOTH EXECUTIVES OF CHICAGO BASED J. M. B. REALTY CORPORATION J. M. B. REALTY HAS A CONTRACT WITH CALPERS TO REPRESENT THE PENSION PLAN'S INTERESTS BEFORE THE BOARD CALPERS BOUGHT ITS STAKE IN CATELLUS IN NINETEEN EIGHTY NINE THE STAKE'S VALUE HAS SLIPPED STEADILY IN RECENT YEARS AS THE REAL ESTATE BUST HAMMERED CATELLUS'S PORTFOLIO OF OFFICE BUILDINGS AND LAND CATELLUS STOCK WHICH TRADED AS HIGH AS FIFTEEN DOLLARS A SHARE IN EARLY NINETEEN NINETY ONE CLOSED FRIDAY AT EIGHT DOLLARS UNCHANGED ON THE NEW YORK STOCK EXCHANGE ON JANUARY FOURTEENTH WILLIAM D. CRIST PRESIDENT OF CALPERS'S ADMINISTRATIVE BOARD SENT A LETTER TO CATELLUS BOARD MEMBERS QUESTIONING THE COMPANY'S OPERATIONS AND MANAGEMENT HE ASKED DIRECTORS TO INDEPENDENTLY REVIEW THE COMPANY AND QUOTE TAKE ACTION AS NECESSARY TO ACCOMPLISH CHANGES QUOTE CHANGES AT G. M. KODAK I. B. M. IF MR. SCWHARTZ DOES DEPART HE WILL BECOME THE LATEST IN A STRING OF HIGH PROFILE EXECUTIVES TO BE PUSHED OUT AFTER OPPOSITION FROM CALPERS IN RECENT YEARS CALPERS HAS BEEN ENGAGED IN A CORPORATE GOVERNANCE PROGRAM USING ITS INVESTMENT CLOUT TO CHALLENGE MANAGEMENT OF COMPANIES THAT IT PERCEIVES AS UNDERPERFORMING PRESSURE FROM CALPERS WHICH USUALLY OWNS MUCH SMALLER STAKES THAN ITS FORTY PERCENT CATELLUS HOLDING CONTRIBUTED TO THE DEPARTURES OF CHIEF EXECUTIVES AT GENERAL MOTORS CORPORATION EASTMAN KODAK COMPANY AND INTERNATIONAL BUSINESS MACHINES COMPANY AMONG OTHERS THIS SPRING CALPERS IS PLANNING PROXY FIGHTS AT BOISE CASCADE CORPORATION AND U. S. SHOE COMPANY OLYMPUS CAPITAL CORPORATION PARENT COMPANY OF OLYMPUS BANK SAID IT RECEIVED A QUOTE PRELIMINARY INDICATION OF INTEREST QUOTE TO BE ACQUIRED BY A FINANCIAL INSTITUTION THROUGH AN EXCHANGE OF STOCK OLYMPUS SAID THAT AS OF FRIDAY THE VALUATION OF THE PROPOSED EXCHANGE WOULD BE BELOW THE COMPANY'S RECENT TRADING PRICES IN NASDAQ STOCK MARKET TRADING FRIDAY OLYMPUS CLOSED AT FOURTEEN DOLLARS AND FIFTY CENTS A SHARE DOWN ONE DOLLAR AND TWENTY FIVE CENTS OLYMPUS AND ITS ADVISER GOLDMAN SACHS AND COMPANY ARE PURSUING DISCUSSIONS WITH THE POTENTIAL SUITOR BUT THE COMPANY SAID THERE ISN'T ANY ASSURANCE A TRANSACTION WILL RESULT OLYMPUS SALT LAKE CITY HAS ABOUT THREE POINT ONE MILLION SHARES OUTSTANDING COMPANY OFFICIALS DIDN'T IMMEDIATELY RETURN PHONE CALLS SEEKING ADDITIONAL COMMENT CARDIAC SCIENCE INCORPORATED A TINY MEDICAL RESEARCH CONCERN WITH TIES TO STOCKBROKER RAFI KHAN AND HIS MONEY MANAGER CLIENTS SUSPENDED OPERATIONS FRIDAY AFTER A MULTIMILLION DOLLAR FINANCING DEAL COLLAPSED THE IRVINE CALIFORNIA CONCERN ISSUED A STATEMENT SAYING IT HAS QUOTE TEMPORARILY SUBSTANTIALLY CURTAILED OPERATIONS DUE TO LACK OF FUNDS QUOTE SEVERAL EMPLOYEES HAVE AGREED TO STAY ON BUT NOBODY IS GETTING PAID SAID HOWARD K. COOPER PRESIDENT AND CHIEF EXECUTIVE OFFICER THE ANNOUNCEMENT CAME AFTER CARDIAC SCIENCE SAID AN INVESTMENT FIRM DECIDED NOT TO PROCEED WITH PLANS FOR AN UNDERWRITING OF CARDIAC SCIENCE SHARES THE UNDERWRITER WHICH MR. COOPER DECLINED TO IDENTIFY HAD TENTATIVELY AGREED TO REPLACE BEVERLY HILLS CALIFORNIA BASED REYNOLDS KENDRICK STRATTON INCORPORATED WHICH DROPPED A PLANNED OFFERING LAST OCTOBER AFTER MR. KHAN LEFT THE FIRM CARDIAC SCIENCE WHICH WENT PUBLIC IN JULY NINETEEN NINETY ONE HAD HOPED TO RAISE UP TO EIGHT MILLION DOLLARS THROUGH RKS THE COMPANY DIDN'T SAY HOW MUCH IT SOUGHT IN THE OFFERING WITH RKS'S REPLACEMENT IT WAS THE LATEST BLOW FOR CARDIAC SCIENCE THRUST INTO THE SPOTLIGHT BECAUSE OF ITS BACKING BY MR. KHAN AND HIS CLIENTS WHO BOUGHT THE BULK OF THE COMPANY'S SECURITIES SOLD ABOUT A YEAR AGO IN A ONE POINT TWO MILLION DOLLAR PRIVATE PLACEMENT AMONG THE BUYERS FOR HIS PERSONAL ACCOUNT WAS MONEY MANAGER JOHN KAWESKE WHOSE ALLEGED FAILURE TO PROPERLY REPORT CERTAIN PERSONAL STOCK TRADES LED TO HIS DISMISSAL LAST MONTH BY DENVER BASED INVESCO FUNDS GROUP AN INDIVIDUAL CLOSE TO CARDIAC SCIENCE SAID THE UNDERWRITER RAS SECURITIES NEW YORK GOT COLD FEET BECAUSE OF ALL THE ADVERSE PUBLICITY AND A RELATED SECURITIES AND EXCHANGE COMMISSION PROBE INTO FUND MANAGERS' PERSONAL TRADING RAS SECURITIES BEST KNOWN FOR ITS RESEARCH DIRECTOR RAY DIRKS COULDN'T BE REACHED OVER THE WEEKEND MR. COOPER SAID THE UNDERWRITER'S REPRESENTATIVES TOLD HIM THAT THE DECISION WAS BASED ON MARKET CONDITIONS AND OTHER FINANCING CONSIDERATIONS CARDIAC SCIENCE HE SAID IS STILL HOPING TO OBTAIN PRIVATE FINANCING THROUGH THE FIRM OR OTHER FUNDING GROUPS BEFORE MR. KHAN'S ABRUPT RESIGNATION FROM REYNOLDS KENDRICK STRATTON IN OCTOBER HE ACCOMPANIED MR. COOPER ON A PROMOTIONAL ROAD SHOW THAT BEGAN IN THE MIDDLE EAST AND INCLUDED STOPS IN SWITZERLAND FRANCE ENGLAND AND MANY U. S. CITIES WE COMPLETED THE ROAD SHOW IN LOS ANGELES AND TWO DAYS LATER RAFI RESIGNED MR. COOPER SAID MR. COOPER SAID HE IS UPSET BUT BEARS NO ILL WILL TOWARD MR. KHAN REACHED AT HIS HOME OFFICE IN LA CANADA CALIFORNIA MR. KHAN DECLINED TO COMMENT THE STOCKBROKER RECENTLY LOST A PROXY FIGHT TO OUST THE MANAGEMENT OF I. C. N. PHARMACEUTICALS INCORPORATED A COSTA MESA CALIFORNIA DRUG MAKER MR. COOPER WAS A DIRECTOR ON MR. KHAN'S SLATE CARDIAC SCIENCE IS TRYING TO RAISE MONEY TO CONTINUE TESTING A BEDSIDE DEVICE DESIGNED TO STOP VENTRICULAR ARRHYTHMIAS THAT LEAD TO SUDDEN CARDIAC DEATH ONE OF THE LEADING CAUSES OF DEATH IN THE U. S. AND OTHER COUNTRIES THE ANNOUNCEMENT CAME LATE FRIDAY WELL AFTER THE UNUSUALLY EARLY CLOSE OF NEW YORK MARKETS THE WORLD'S LARGEST MULTIMEDIA COMPANY DOESN'T BELIEVE IN THE MULTIMEDIA FUTURE QUOTE MULTIMEDIA IS JUST A WORD AND THAT WORD IS RUNNING AHEAD OF THE SUBSTANCE QUOTE HUFFS HIROSHI YAMAUCHI PRESIDENT OF VIDEO GAME MAKER NINTENDO COMPANY LET OTHERS SPIN FANCY DREAMS OF THE INFORMATION HIGHWAY HE SAYS NINTENDO WILL CONCENTRATE ON JUST ONE POINT IMPROVING THE QUALITY OF GAMES IN THE CURRENT MARKET SEGA ENTERPRISES LIMITED COULDN'T DISAGREE MORE NINTENDO'S ARCHRIVAL BELIEVES MULTIMEDIA WILL LEAD TO A TECTONIC SHIFT IN SOCIETY PRESIDENT HAYAO NAKAYAMA SAYS SEGA IS PLANNING CABLE T. V. VIDEOGAME CHANNELS AND HIGH TECH THEME PARKS WITH MORE MULTIMEDIA PRODUCTS TO COME MR. NAKAYAMA SAYS I DON'T CONSIDER NINTENDO OUR COMPETITOR ANYMORE NINTENDO AND SEGA THE TWO COMPANIES THAT SO FAR HAVE DONE THE MOST TO CREATE THE MULTIMEDIA MARKET ARE BETTING THEIR FUTURES ON VERY DIFFERENT VISIONS OF WHAT IT WILL LOOK LIKE AND HOW THEY CAN PROFIT FROM IT THEIR STORY IS A PARABLE OF TWO SEEMINGLY SIMILAR COMPANIES BOTH DOMINANT IN THEIR INDUSTRY FORCED TO CHOOSE BETWEEN RADICAL CHANGE AND THE STATUS QUO AS THE GROUND STARTS SHIFTING UNDER THEIR FEET UP TO NOW THE COMPANIES HAVE FOLLOWED NEARLY IDENTICAL STRATEGIES WHILE OTHER JAPANESE ELECTRONICS MAKERS COMPETED FOR EVER NARROWING MARGINS ON HARDWARE SEGA AND NINTENDO CONCENTRATED ON SOFTWARE THANKS TO MUSHROOMING GAME SALES AND THE STIFF LICENSING FEES BOTH COMPANIES CHARGE TO THIRD PARTY DEVELOPERS THE COMPANIES HAVE MADE BIG BUCKS FROM SOFTWARE WHILE SELLING THEIR GAME COMPUTERS AT VIRTUALLY NO PROFIT SEGA HAS MORE THAN TRIPLED ITS CONSOLIDATED SALES IN JUST TWO YEARS WHILE MUCH LARGER NINTENDO MANAGED THIRTY FOUR PERCENT GROWTH OVER THE SAME PERIOD BOTH COMPANIES ALSO HAVE BEEN ENORMOUSLY PROFITABLE NOW HOWEVER THE CASH COW GAME BUSINESS IS DRYING UP NINTENDO'S PARENT PRETAX PROFIT WHICH EXCLUDES RESULTS FROM OVERSEAS SUBSIDIARIES FELL TWENTY FOUR PERCENT IN THE SIX MONTHS ENDED SEPTEMBER THIRTIETH THE FIRST DECLINE SINCE NINETEEN EIGHTY FOUR SEGA MEANWHILE SAW ITS UNCONSOLIDATED SALES OVER THE SAME PERIOD RISE JUST TWENTY PERCENT MUCH SLOWER THAN ITS NINETY ONE PERCENT SALES GROWTH A YEAR EARLIER BOTH COMPANIES BLAME SOFT SALES IN EUROPE AND THE JAPANESE CURRENCY'S STRENGTH WHICH REDUCES THE YEN VALUE OF OVERSEAS SALES DENOMINATED IN OTHER CURRENCIES EVEN SO SEGA'S DOLLAR DENOMINATED SALES OF VIDEO GAME PLAYERS HAVE SURGED IN THE U. S. SCORING A VICTORY OVER NINTENDO SEGA CAPTURED TWO THIRDS OF THE MOST CRUCIAL SEGMENT OF THE U. S. MARKET FOR VIDEOGAME PLAYERS DURING THE HOLIDAY SEASON THE FIFTEEN BILLION DOLLARS GAME MARKET ALSO IS CHANGING IN MORE FUNDAMENTAL WAYS NEW COMPETITORS HAVE FLOODED IN BY THE END OF THIS YEAR NINTENDO AND SEGA WILL HAVE TO CONTEND NOT JUST WITH EACH OTHER BUT ALSO WITH A RESURRECTED ATARI CORPORATION AND CONSUMER ELECTRONICS GIANTS SONY CORPORATION AND MATSUSHITA ELECTRIC INDUSTRIAL COMPANY SONY AND MATSUSHITA POSE A SPECIAL THREAT BECAUSE BOTH OWN HOLLYWOOD STUDIOS AN IN HOUSE SOURCE OF SOFTWARE MORE SIGNIFICANTLY THE NEWCOMERS HAVE STARTED WOOING THIRD PARTY SOFTWARE HOUSES TO WRITE GAMES FOR THEIR MACHINES THE MARGINS FOR NINTENDO AND SEGA WILL NARROW SAYS JOSEPH OSHA AN ANALYST WITH BARING SECURITIES JAPAN LIMITED NINTENDO AND SEGA HAVE PREPARED THE OBVIOUS COUNTERATTACK POWERFUL NEW GAME MACHINES THAT WILL OFFER THREE DIMENSIONAL MOTION AND DIGITIZED VIDEO CLIPS NINTENDO WHICH HAS PREFERRED SOLO WORK IS DEVELOPING A MACHINE CODE NAMED PROJECT REALITY WITH SILICON GRAPHICS INCORPORATED FOR RELEASE IN MID NINETEEN NINETY FIVE SEGA MEANWHILE HAS TURNED TO HITACHI LIMITED AND MUSICAL INSTRUMENT MAKER YAMAHA CORPORATION FOR HELP WITH ITS QUOTE SATURN QUOTE GAME MACHINE WHICH IT INTENDS TO RELEASE LATE THIS YEAR NINTENDO HOWEVER HAS STOPPED THERE WHILE SEGA HAS TURNED OUTWARD TO FIND FUTURE MULTIMEDIA MARKETS WE WANT TO BE A LEADER IN INTERACTIVE ENTERTAINMENT BOTH IN THE HOME AND OUTSIDE THE HOME SAYS TOM KALINSKE PRESIDENT OF SEGA'S U. S. UNIT ACT ONE OPENS LATER THIS YEAR WHEN TIME WARNER INCORPORATED AND TELE COMMUNICATIONS INCORPORATED START TEST MARKETING A NEW SERVICE CALLED THE SEGA CHANNEL IN THE U. S. SUBSCRIBERS WHO BUY OR RENT SPECIAL HARDWARE WILL BE ABLE TO DOWNLOAD SONIC THE HEDGEHOG OR ANY OF FIFTY OTHER SEGA VIDEO GAMES FROM THEIR CABLE SYSTEM THE SEGA CHANNEL IS MUCH MORE THAN A WAY OF DISTRIBUTING GAMES ELECTRONICALLY IT'S A MARKETING TOOL SEGA INTENDS TO WITHHOLD NEW GAMES FROM THE SYSTEM'S EVER CHANGING LIBRARY INSTEAD OFFERING THEM ONLY AS TRUNCATED PREVIEWS WHERE PLAYERS CAN PLAY ONLY ONE OR TWO LEVELS ONLY WHEN THE RETAIL MARKET FOR THOSE GAMES HAS BEEN SATURATED WILL SEGA RELEASE THEIR FULL VERSIONS VIA CABLE SEGA EXPECTS TWO MILLION SUBSCRIBERS BY NINETEEN NINETY SIX A FIGURE MANY ANALYSTS FIND CREDIBLE WITHIN A FEW YEARS SEGA HOPES TO HAVE GAINED ENOUGH EXPERIENCE IN THE CABLE MARKET TO PITCH THE SATURN AS THE HARDWARE NEEDED FOR TAPPING INTO FUTURE INTERACTIVE CABLE TELEVISION SYSTEMS SEGA ISN'T WORRIED ABOUT LIKELY COMPETITORS SUCH AS GENERAL INSTRUMENT CORPORATION AND SCIENTIFIC ATLANTA INCORPORATED HE WHO GETS THERE FIRST HAS A BIG LEG UP MR. KALINSKE SAYS BY THE TIME INTERACTIVE CABLE SYSTEMS FOR GENERAL USE ARE STARTING UP WE'LL BE SEVERAL MILLION USERS AHEAD OF THE OTHER GUYS ACT TWO BEGINS IN MARCH IN OSAKA WHEN SEGA OPENS ITS FIRST HIGH TECH THEME PARK A CROSS BETWEEN A TRADITIONAL AMUSEMENT PARK AND THE UPSCALE VIDEO ARCADES SEGA ALREADY RUNS QUOTE YOU CAN DRIVE A FORMULA ONE CAR OR RIDE THE SPACE SHUTTLE QUOTE IN THE PARK'S QUOTE VIRTUAL REALITY QUOTE ATTRACTIONS SEGA EXECUTIVE VICE PRESIDENT SHOICHIRO IRIMAJIRI SAYS IN VIRTUAL LAND YOU CAN REALIZE YOUR DREAMS EACH PARK WILL COST AS MUCH AS FIVE BILLION YEN TO SEVEN BILLION YEN FORTY SIX MILLION DOLLARS TO SIXTY FIVE MILLION DOLLARS TO DEVELOP SEGA IS PLANNING A SIMILAR ALTHOUGH SMALLER PARK WITH MATSUSHITA'S M. C. A. UNIT IN LOS ANGELES NINTENDO'S COMPARATIVELY PASSIVE STRATEGY IS PARTICULARLY STRIKING GIVEN THE COMPANY'S EARLIER ATTEMPTS TO CAPITALIZE ON ITS HUGE INSTALLED BASE OF GAME COMPUTERS IT TRIED AN INTERACTIVE TELEVISION NETWORK IN THE LATE NINETEEN EIGHTIES THROUGH WHICH FAMILIES COULD BUY AND SELL SECURITIES OR BET ON HORSE RACES THROUGH THEIR GAME MACHINES THE NETWORK STALLED IN JAPAN AND NEVER WAS ROLLED OUT IN THE U. S. NOW COMPANY EXECUTIVES HEAP SCORN ON SEGA'S PLANS AND INSIST THAT THEIR NEW GAME MACHINE WILL USHER IN THE MULTIMEDIA FUTURE BY ITSELF WHEN CRITICS ARGUE THAT THE ACTUAL PERFORMANCE OF NINTENDO'S NEW MACHINE ISN'T LIKELY TO BE MUCH GREATER THAN THOSE FROM ITS COMPETITORS MR. YAMAUCHI DISMISSES THEM AS NAIVE AND IGNORANT OF THE VIDEO GAME MARKET HE HAS SIMILAR WORDS FOR THOSE READY TO WRITE OFF NINTENDO WHICH HAS A CASH RESERVE OF NEARLY THREE BILLION DOLLARS NINTENDO'S MOVEMENT IS ALWAYS VERY SLOW TO OUTSIDERS CHANGE JUST TAKES TIME HE SAYS IF PEOPLE CLAIM WE ARE TOO SLOW IT JUST SHOWS THEY'RE IGNORANT MACHINERY AND PLANT ENGINEERING GROUP DEUTSCHE BABCOCK A. G. SAID IT WILL PAY AN UNCHANGED DIVIDEND OF THREE MARKS ONE DOLLAR AND SEVENTY ONE CENTS A PREFERRED SHARE FOR THE FISCAL YEAR ENDED SEPTEMBER THIRTIETH THE COMPANY HASN'T PAID A DIVIDEND ON COMMON SHARES SINCE FISCAL NINETEEN EIGHTY EIGHT LAST YEAR BABCOCK PAID THE PREFERRED SHARE DIVIDENDS IT MISSED IN FISCAL NINETEEN NINETY AND NINETEEN NINETY ONE THE PAYMENT OF THE MISSED DIVIDENDS ON THE PREFERRED SHARES IS A PRECONDITION FOR THE RESUMPTION OF THE COMMON STOCK DIVIDEND WHICH WAS FIVE MARKS IN NINETEEN EIGHTY EIGHT DEUTSCHE BABCOCK ALSO REPORTED PRETAX PROFIT FOR THE FISCAL YEAR FELL FIFTY PERCENT TO SIXTY TWO MILLION MARKS THIRTY FIVE POINT FOUR MILLION DOLLARS FROM ONE HUNDRED TWENTY FOUR MILLION MARKS IN FISCAL NINETEEN NINETY TWO IN DECEMBER DEUTSCHE BABCOCK TOLD ITS EMPLOYEES PRETAX EARNINGS FELL TO QUOTE AROUND QUOTE SIXTY MILLION MARKS WHILE SALES ROSE SEVEN POINT NINE PERCENT TO EIGHT POINT TWO BILLION MARKS OPERATING PROFIT DIDN'T WORSEN IN THE LATEST YEAR A COMPANY SPOKESMAN SAID INSTEAD THE DECLINE IN PRETAX PROFIT WAS DUE TO EXTRAORDINARY ITEMS IN FISCAL NINETEEN NINETY TWO THE SALE OF REAL ESTATE INFLATED DEUTSCHE BABCOCK'S EARNINGS WHILE EARNINGS IN FISCAL NINETEEN NINETY THREE WERE HIT BY ONE TIME EXPENSES RELATED TO RESTRUCTURING AND LAYOFFS HE SAID THE COMPANY WON'T RELEASE FURTHER DETAILS ON FISCAL NINETEEN NINETY THREE UNTIL ITS ANNUAL EARNINGS NEWS CONFERENCE MAY TWELFTH THE SPOKESMAN SAID AT MANY BUSINESS SCHOOLS DEMAND FOR M. B. A. AND OTHER DEGREES IS GOING DOWN SO NATURALLY MORE BUILDINGS ARE GOING UP IT ISN'T DENIAL SCHOOL OFFICIALS SAY THEY CANNOT COMPETE EFFECTIVELY IN TODAY'S TIGHTENING MARKET UNLESS THEY CONSTRUCT STYLISH NEW QUARTERS LOADED WITH THE LATEST HIGH TECH GEAR THE EDIFICE COMPLEX IS UNPRECEDENTED BY ONE COUNT EIGHTEEN OF TWENTY TOP RANKED U. S. SCHOOLS ARE PLANNING UNDERGOING OR JUST FINISHING BIG CONSTRUCTION PROJECTS WITH A TOTAL COST EXCEEDING FIVE HUNDRED MILLION DOLLARS MAJOR BUILDING VENTURES ARE UNDER WAY AT DOZENS OF OTHER BUSINESS SCHOOLS TOO AT BOSTON UNIVERSITY'S BUSINESS SCHOOL FOR INSTANCE M. B. A. APPLICATIONS AND ENROLLMENT HAVE SLIPPED ABOUT TEN PERCENT FROM TWO YEARS AGO YET THE SCHOOL PLANS TO BREAK GROUND IN MAY FOR A FANCY NEW BUILDING WITH A SIX STORY ATRIUM TWO THOUSAND COMPUTER OUTLETS AND FIFTY PERCENT MORE CLASSROOM OFFICE AND MEETING SPACE B. U. HAS ALREADY CONSTRUCTED MOCK UPS OF THE LATEST IN BUSINESS CLASSROOMS AND FACULTY OFFICES AND IS SOLICITING PROFESSORS' REACTIONS TO THE PROTOTYPES THE COMPLETED BUILDING AT A PROJECTED COST OF EIGHTY MILLION DOLLARS WILL BE ONE OF THE MOST EXPENSIVE MANAGEMENT EDUCATION FACILITIES ANYWHERE QUOTE IT'S GOING TO BE A REAL ATTENTION GETTER QUOTE SAYS LOUIS E. LATAIF THE SCHOOL'S DEAN SOME CRITICS QUESTION THE WISDOM OF INVESTING IN MORE SPACE AMID DECREASING INTEREST IN BUSINESS EDUCATION AFTER PEAKING IN THE LATE NINETEEN EIGHTIES THE VOLUME OF M. B. A. APPLICATIONS HAS DROPPED SHARPLY IN RECENT YEARS NATIONWIDE REGISTRATIONS FOR THE GRADUATE MANAGEMENT ADMISSION TEST REQUIRED OF MOST M. B. A. APPLICANTS DIPPED SIXTEEN PERCENT BETWEEN NINETEEN NINETY ONE AND NINETEEN NINETY THREE AND CONTINUE TO SLIDE MANY SCHOOLS ALSO REPORT DECLINING DEMAND FOR THEIR EXECUTIVE EDUCATION AND UNDERGRADUATE PROGRAMS IN SCHOOL AFTER SCHOOL THE CURRENT BUILDING BOOM DEFIES THIS SHRINKING DEMAND THE ANDERSON SCHOOL AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES HAS SEEN FULL TIME M. B. A. APPLICATIONS AND ENROLLMENT PLUNGE MORE THAN TWENTY SEVEN PERCENT DURING THE LAST THREE YEARS BUT NEXT YEAR THE SCHOOL WILL GAIN FIFTY PERCENT MORE SPACE WHEN IT MOVES INTO A SEVENTY FIVE MILLION DOLLAR SEVEN BUILDING ACADEMIC VILLAGE FOR GRADUATE MANAGEMENT STUDY TEXAS A AND M. UNIVERSITY'S M. B. A. PROGRAM SUFFERED AN EIGHTEEN PERCENT DROP IN APPLICATIONS AND A THIRTY SIX PERCENT PLUNGE IN ENROLLMENT LAST YEAR ALONE ITS UNDERGRADUATE ENROLLMENT HAS DECREASED MORE THAN TWENTY FIVE PERCENT SINCE NINETEEN EIGHTY NINE NEVERTHELESS THE SCHOOL NOW IS FINISHING A TWENTY THREE POINT FIVE MILLION DOLLAR FACILITY SOME BUILDING PROJECTS BEGAN LONG BEFORE STUDENT INTEREST STARTED TO WANE ONCE YOU START CONSTRUCTION YOU CAN'T STOP IT SAYS WILLIAM P. PIERSKALLA DEAN AT U. C. L. A.'S ANDERSON SCHOOL HE AND DEANS OF OTHER TOP SCHOOLS SAY THEY DON'T WORRY MUCH ABOUT RECENT SLIPS IN APPLICATIONS AND ENROLLMENT BECAUSE THEY STILL HAVE MANY MORE APPLICANTS THAN SPACES AT WORST THEY CONTEND STUDENT DEMAND IS RETURNING TO LEVELS THAT PRECEDED THE M. B. A. BOOM OF THE NINETEEN EIGHTIES BUT WITH THE RISK THAT DEMAND MIGHT DROP STILL FURTHER BUSINESS SCHOOL DEANS INSIST THAT THEY NEED NEW FACILITIES TO ATTRACT QUALITY STUDENTS AND FACULTY AS MORE SCHOOLS PUT UP NEW BUILDINGS M. B. A. AND EXECUTIVE EDUCATION STUDENTS EVERYWHERE EXPECT BETTER CLASSROOMS LOUNGES AND LIBRARIES MOREOVER DEANS SAY THEY REQUIRE UPGRADED FACILITIES TO SUPPORT RECENT CURRICULUM CHANGES THAT EMPHASIZE SMALL GROUP LEARNING TEAM PROJECTS AND COMPUTER AND VIDEO TECHNOLOGY THE NATURE OF BUSINESS EDUCATION HAS CHANGED SAYS ALAN MERTEN DEAN OF CORNELL UNIVERSITY'S JOHNSON SCHOOL UNTIL RECENTLY HE CONTINUES ALL YOU NEEDED WAS A BLACKBOARD AND A CLASSROOM BUT NOW YOU NEED VIDEO CONFERENCING MULTIMEDIA AND ALL KINDS OF DIFFERENT SPACES SPACE IS SO TIGHT AT JOHNSON THAT SOME FACULTY MEMBERS LACK OFFICES MR. MERTEN SAYS SO DESPITE A THIRTY FIVE PERCENT DECLINE IN M. B. A. APPLICATIONS SINCE NINETEEN NINETY ONE CORNELL PLANS TO BUILD A THIRTY FIVE MILLION DOLLAR LARGER HOME IN A LANDMARK CAMPUS BUILDING EVEN SCHOOLS THAT HAVEN'T LOST M. B. A. APPLICANTS BELIEVE THEY MUST ADD MORE AND BETTER SPACE TO MAINTAIN A COMPETITIVE EDGE QUOTE WE'RE NOT GOING TO BE ABLE TO SIT WITH A THIRTY FIFTH RATE BUILDING FOR VERY LONG WITHOUT IMPERILING OUR POSITION QUOTE SAYS JACE SCHINDERMAN AN ASSOCIATE DEAN AT COLUMBIA UNIVERSITY'S BUSINESS SCHOOL M. B. A. APPLICATIONS THERE HAVE INCREASED TWENTY SIX PERCENT DURING THE PAST TWO YEARS COLUMBIA HAS SPENT FOUR MILLION DOLLARS SINCE NINETEEN NINETY MAKING PATCHWORK IMPROVEMENTS AND INSTALLING COMPUTER WIRING IN ITS CRAMPED THIRTY FOUR YEAR OLD BUILDING BUT NOW IT IS STUDYING PLANS FOR A NEW BUILDING PROJECTED TO COST BETWEEN SIXTY MILLION DOLLARS AND ONE HUNDRED MILLION DOLLARS COLUMBIA'S SUCCESS DESPITE ITS CROWDED QUARTERS RAISES THE QUESTION OF WHETHER NEW FACILITIES MATTER THE REPUTATIONS OF THE SCHOOLS ARE ALREADY TOO ESTABLISHED TO BE INFLUENCED BY A MERE BUILDING SAYS SAM LUNDQUIST DIRECTOR OF GRADUATE ADMISSIONS AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL WHARTON'S NEWEST BUILDING AN EXECUTIVE EDUCATION CENTER WAS COMPLETED FOUR YEARS AGO INDEED THE SIXTY SEVEN MILLION DOLLAR HOME OF NEW YORK UNIVERSITY'S STERN SCHOOL WHICH OPENED IN THE FALL OF NINETEEN NINETY TWO WAS THE NINTH MOST IMPORTANT FACTOR INFLUENCING STUDENTS TO ENROLL THIS PAST FALL ACCORDING TO A STERN SURVEY THE BUILDING RANKED BEHIND STERN'S LOCATION REPUTATION IN FINANCE AND OTHER ELEMENTS NONETHELESS THE SCHOOL IS USING THE STRUCTURE AS A KEY SELLING POINT IN PROMOTIONAL AND FUND RAISING MATERIAL NOT SURPRISINGLY THE BUILDING BOOM HAS SET OFF A FRENZY OF FUND RAISING BY BUSINESS SCHOOLS FEW HAVE RAISED ALL OF THE MONEY IN ADVANCE MOST BORROW SOME EXPECTING HIGHER REVENUE TO COVER THE DEBT THE UNIVERSITY OF CALIFORNIA AT BERKELEY SAYS IT MUST RAISE ANOTHER SIX MILLION DOLLARS JUST TO FURNISH ITS FORTY FIVE MILLION DOLLARS THREE BUILDING CAMPUS SET FOR COMPLETION LATER THIS YEAR TO HELP COVER HIGHER OPERATING COSTS BERKELEY HOPES TO BOOST ITS EXECUTIVE EDUCATION REVENUE FIVEFOLD TO TWELVE POINT FIVE MILLION DOLLARS IN COMING YEARS FROM TWO POINT FIVE MILLION DOLLARS NOW THE UNIVERSITY OF MINNESOTA'S CARLSON SCHOOL NEEDS ANOTHER THIRTY FIVE MILLION DOLLARS FOR ITS PLANNED FORTY FIVE MILLION DOLLAR FACILITY TO HELP MAKE ITS CASE WITH DONORS AND LAWMAKERS MINNESOTA HAS PREPARED A CHART RANKING IT DEAD LAST IN THE NUMBER OF SQUARE FEET PER STUDENT AMONG A DOZEN BUSINESS SCHOOLS AT BIG PUBLIC UNIVERSITIES ALL EXCEPT CARLSON HAVE RECENTLY BUILT OR NOW ARE BUILDING UPGRADED FACILITIES THE SCHOOL NOTES AT CORNELL A NEW BUILDING IS GOING TO PUT PRESSURE FOR NEW REVENUE ACROSS THE BOARD FROM ANNUAL FUND RAISING TO EXECUTIVE EDUCATION DEAN MERTEN SAYS THE SCHOOL WON'T PROCEED UNLESS IT HAS LINED UP THE NECESSARY MONEY HE ADDS BUT AS LONG AS IT MAKES FISCAL SENSE THE DEAN SAYS NOW'S THE TIME TO INVEST IN FIRSTCLASS M. B. A. PROGRAMS THEY'RE NOT GOING TO GO AWAY A FEDERAL COURT JURY REJECTED A CLAIM BY A CHICAGO BUSINESSMAN THAT HIS NOW DEFUNCT COMPANY FAILED IN NINETEEN NINETY DUE TO RACIAL DISCRIMINATION BY ADOLPH COORS COMPANY'S COORS BREWING COMPANY FELIX A. BURROWS JUNIOR SUED COORS UNDER THE CIVIL RIGHTS ACT OF NINETEEN NINETY ONE IN U. S. DISTRICT COURT HERE ALLEGING THAT COORS HAD CANCELED ORDERS FOR BREWING MACHINERY PARTS FOR RACIALLY MOTIVATED REASONS THOSE CANCELLATIONS CAUSED HIS GREAT AMERICAN TOOL AND MANUFACTURING COMPANY TO FAIL MR. BURROWS ALLEGED MR. BURROWS HAD SOUGHT COMPENSATORY AND PUNITIVE DAMAGES IN EXCESS OF TWENTY MILLION DOLLARS THE JURY REJECTED MR. BURROWS'S CLAIM AFTER A TWO WEEK TRIAL COORS TESTIFIED THAT IT HAD PROVIDED MR. BURROWS WITH NO INTEREST LOANS AND EXPEDITED PAYMENT OF ITS INVOICES TO TRY TO HELP HIM STAY IN BUSINESS RATHER THAN CANCELING ORDERS COORS INCREASED ITS ORDERS FOR PARTS TO SIXTY FOUR THOUSAND DOLLARS A MONTH IN NINETEEN NINETY FROM FIVE THOUSAND TWO HUNDRED DOLLARS A MONTH IN NINETEEN EIGHTY SIX THE BREWER ARGUED WHEN GREAT AMERICAN FAILED IT HELD FIFTY EIGHT THOUSAND DOLLARS IN UNFILLED ORDERS FROM THE BREWER COORS SAID MR. BURROWS COULDN'T BE REACHED IMMEDIATELY FOR COMMENT THE U. S. IS POISED TO LAUNCH TRADE SANCTION PROCEEDINGS TOMORROW AGAINST JAPAN OVER CELLULAR TELEPHONES AS PART OF A BROAD EFFORT TO RATCHET UP PRESSURE ON TOKYO THE MOVES FOLLOW THE COLLAPSE OF A TRADE SUMMIT BETWEEN PRESIDENT CLINTON AND JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA ON FRIDAY THE FIRST TIME IN DECADES THAT A SUMMIT BETWEEN THE U. S. AND JAPAN HAS ENDED IN FAILURE THE MEETING WAS SUPPOSED TO REDEFINE FUNDAMENTALLY TRADE RELATIONS BETWEEN THE TWO NATIONS BUT INSTEAD RESULTED IN STALEMATE AND FRUSTRATION QUOTE IT IS BETTER TO HAVE REACHED NO AGREEMENT THAN AN EMPTY AGREEMENT QUOTE MR. CLINTON SAID WE'LL JUST COOL OUR HEADS FOR A WHILE MR. HOSOKAWA SAID THEIR COMMENTS OCCURRED AFTER THE U. S. CALLED OFF THE SO CALLED FRAMEWORK TRADE TALKS FIGURING JAPAN WOULDN'T AGREE TO THE FUNDAMENTAL U. S. DEMAND TO SET IMPORT GOALS EACH SIDE BLAMED THE OTHER'S INTRANSIGENCE FOR THE BREAKDOWN AND EACH SIDE PROUDLY HUFFED THAT ITS LEADER HAD FINALLY STOOD UP TO THE OTHER BREAKING A PATTERN OF RECENT YEARS WHEN THE NATIONS SIGNED TRADE PACTS THAT NEITHER LIKED SIMPLY TO SATISFY THE OTHER INDEED MANY JAPANESE SAY THE SUMMIT'S FAILURE REFLECTS A MATURING OF THE BILATERAL RELATIONSHIP RATHER THAN TREMBLING IN FEAR OVER PROSPECTS OF A TRADE WAR MANY JAPANESE PORTRAYED THE SUMMIT AS A TURNING POINT MARKING THEIR NATION'S GROWTH BEYOND THE LITTLE BROTHER ROLE IT HAS PLAYED SINCE WORLD WAR TWO TO THE U. S. BIG BROTHER OUR RELATIONSHIP IN THIS NEW ERA IS MATURING TO AN EXTENT EACH OF US RESPECTS AND HAS CONFIDENCE IN THE JUDGMENTS OF THE OTHER BUT AT THE SAME TIME WE FRANKLY ADMIT WHAT WE CAN AND WHAT WE CANNOT DO MR. HOSOKAWA SAID I BELIEVE THIS IS THE RELATIONSHIP BETWEEN GROWN UPS THOSE WORDS RESONATED THROUGHOUT JAPAN OVER THE WEEKEND THE JAPAN THAT SAID NO WAS THE HEADLINE OVER SUNDAY'S EDITORIAL IN THE ENGLISH LANGUAGE EDITION OF YOMIURI SHIMBUN THE NATION'S LARGEST CIRCULATION DAILY AN ALLUSION TO A BESTSELLING BOOK PUBLISHED FIVE YEARS AGO URGING JAPAN TO TAKE A MORE ASSERTIVE STANCE TOWARD THE U. S. BOTH LEADERS STRESSED THAT THEY WOULDN'T LET ECONOMIC TENSIONS UNDERMINE COOPERATION IN DIPLOMATIC AND SECURITY MATTERS MR. HOSOKAWA VOWED FOR EXAMPLE THAT JAPAN WOULD WORK WITH THE U. S. TO TRY TO BLOCK NORTH KOREA'S NUCLEAR WEAPONS PROGRAM ON TRADE ISSUES WHITE HOUSE CHIEF ECONOMIST LAURA TYSON SAID QUOTE OUR POSITION IS THE DOOR IS OPEN FOR FURTHER NEGOTIATIONS BUT THEY HAVE TO INITIATE TO GET JAPAN TO KNOCK ON THE DOOR WITH A NEW PROPOSAL THE U. S. IS DISCUSSING A LIST OF OPTIONS MEANT TO INCREASE TENSION IN TOKYO IN RESPONSE TO COMPLAINTS OVER JAPAN'S POLICY ON CELLULAR TELEPHONES THE ADMINISTRATION IS PLANNING PROHIBITIVELY HIGH TARIFFS ON A VARIETY OF JAPANESE EXPORTS U. S. OFFICIALS ALSO SAID THEY EXPECT THE ADMINISTRATION TO APPROVE BY EXECUTIVE ORDER THE RENEWAL OF A TRADE PROVISION KNOWN AS SUPER THREE HUNDRED ONE UNDER THAT LAW THE U. S. TARGETS COUNTRIES ENGAGING IN UNFAIR TRADE PRACTICES AND REQUIRES RETALIATION UNLESS THOSE NATIONS CHANGE THEIR WAYS TOKYO HATES SUPER THREE HUNDRED ONE WHICH WAS IN EFFECT DURING THE EARLY YEARS OF THE BUSH ADMINISTRATION BECAUSE IT REALIZES THAT THE LAW IS AIMED DIRECTLY AT JAPAN AT THE SAME TIME CLINTON OFFICIALS SAID THEY MAY BEGIN TO COURT ALLIES IN JAPAN'S BACKYARD SUCH AS SOUTH KOREA AND SINGAPORE BY CONSPICUOUSLY OFFERING THEM TRADE AND TECHNOLOGY DEALS THE IDEA IS TO REMIND JAPAN OF ITS POLITICAL AND ECONOMIC DEPENDENCE ON THE U. S. BUT NOT GO SO FAR AS TO UNDERMINE THE HOSOKAWA REGIME THE CLINTON TEAM VIEWS THE JAPANESE PRIME MINISTER AS COMMITTED TO CHANGE BUT DOMINATED BY CAREER MANDARINS EQUALLY COMMITTED TO THE STATUS QUO THE U. S. JAPAN RELATIONSHIP HAS TO GO DOWN BEFORE IT GOES UP SAID A SENIOR U. S. OFFICIAL EVEN THOUGH WE HAVEN'T REACHED AGREEMENT THAT DOESN'T MEAN JAPAN WON'T DO ANYTHING A SENIOR FOREIGN MINISTRY OFFICIAL SAID SHORTLY AFTER THE SUMMIT FELL APART HE SAID JAPAN WOULD CONTINUE WORKING TO CHANGE LAWS AND REGULATIONS THE U. S. CLAIMS ARE BARRIERS TO ENTERING JAPAN'S INSURANCE AND GOVERNMENT PROCUREMENT MARKETS MR. HOSOKAWA ALSO INDICATED THAT JAPAN WILL MOVE UNILATERALLY TO OPEN ITS MARKETS SOON AFTER RETURNING HOME WE WILL CONSIDER THE PROBLEM OUR SIDE MUST COME UP WITH SOME WISDOM AND JAPAN WILL DO WHAT IT CAN ON ITS OWN QUOTE MR. HOSOKAWA SAID ON HIS FLIGHT BACK TO TOKYO REUTERS NEWS SERVICE REPORTED BUT JAPANESE LEADERS WERE VIRTUALLY UNANIMOUS IN ASSERTING THAT THEY WILL NO LONGER TAKE U. S. SANCTION THREATS LYING DOWN NO ONE SUGGESTED THAT TOKYO WILL RETALIATE IN KIND INSTEAD JAPANESE OFFICIALS SAID THEY WOULD REFER U. S. COMPLAINTS TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE WORLD TRADE REFEREE IN GENEVA WHERE AN INDEPENDENT PANEL WOULD REVIEW THE LEGITIMACY OF U. S. CHARGES THE CLINTON ADMINISTRATION EXPECTS TO MAKE DECISIONS ON TRADE STRATEGY WITH JAPAN OVER THE NEXT MONTH BUT THE CELLULAR TELEPHONE CONTROVERSY GIVES THE U. S. A QUICK STRIKE OPTION AND ONE THAT ILLUSTRATES U. S. COMPLAINTS ABOUT A CLOSED JAPANESE MARKET MOTOROLA INCORPORATED WHICH HAS SPENT YEARS FIGHTING JAPANESE BUREAUCRATS COMPLAINS OF BEING DENIED COMPARABLE ACCESS TO THE JAPANESE CELLULAR TELEPHONE MARKET DESPITE A TRADE AGREEMENT PROMISING MOTOROLA AN OPEN MARKET IN AN AREA SOUTH OF TOKYO JAPAN'S MINISTRY OF POST AND TELECOMMUNICATIONS PAIRED MOTOROLA WITH A COMPANY THAT ALSO REPRESENTS MOTOROLA'S MAIN RIVAL NIPPON TELEGRAPH AND TELEPHONE CORPORATION THE RESULT SAYS MOTOROLA IS THAT ITS PARTNER SPENDS MOST OF ITS EFFORT PUSHING N. T. T.'S TECHNOLOGY NOT MOTOROLA'S SO MOTOROLA HAS ENLISTED THE U. S. GOVERNMENT'S HELP IN GETTING GUARANTEES FROM THE COMPANY AND MINISTRY THAT MOTOROLA'S TECHNOLOGY WILL BE MADE BROADLY AVAILABLE TO CONSUMERS U. S. TRADE REPRESENTATIVE MICKEY KANTOR SAID HE BROUGHT UP THE MOTOROLA CASE RECENTLY AND SO FAR WE'VE SEEN NO MOVEMENT UNLESS JAPAN CHANGES ITS VIEW U. S. OFFICIALS SAID THE U. S. PLANS TO DECLARE THAT TOKYO VIOLATED THE CELLULAR TRADE DEAL THE FIRST STEP IN IMPOSING TRADE SANCTIONS THE ADVANTAGE OF TRADE SANCTIONS U. S. OFFICIALS SAID IS THAT THEY GET ATTENTION IN TOKYO BUT TAKE MONTHS TO PUT IN PLACE DURING THAT TIME THE U. S. CAN TRY TO COORDINATE PRESSURE ON JAPAN IN OTHER WAYS AND GIVE TOKYO TIME TO TRY TO FIND A WAY OUT OF ITS PREDICAMENT MR. HOSOKAWA'S CLAIM THAT HE WILL TRY TO SATISFY THE U. S. BY PURSUING DEREGULATION DOESN'T SATISFY AMERICAN GOVERNMENT AND INDUSTRY OFFICIALS THAT WON'T CHANGE BEHAVIOR AND WHAT WE HAVE TO DO IS CHANGE BEHAVIOR SAID RICHARD DYCK THE HEAD OF JAPANESE OPERATIONS OF TERADYNE INCORPORATED A U. S. MAKER OF SEMICONDUCTOR EQUIPMENT IT MAKES SENSE TO SET AFFIRMATIVE ACTION TARGETS TO CHANGE JAPANESE BEHAVIOR STILL CLINTON ECONOMIC OFFICIALS SAID THEY HAVE THEIR LIMITS THEY REJECT OUT OF HAND SUGGESTIONS THAT THE U. S. SELECTIVELY AUDIT THE TAX RETURNS OF JAPANESE COMPANIES IN ADDITION ADMINISTRATION OFFICIALS SAID THEY WEREN'T PLANNING A BROAD EFFORT TO DRIVE UP THE VALUE OF THE YEN AGAINST THE DOLLAR A STRONGER YEN HELPS U. S. EXPORTS BECAUSE IT MAKES THEM RELATIVELY CHEAPER THE YEN DID RISE ON FRIDAY AFTER THE TRADE TALKS FAILED IN ANTICIPATION OF U. S. CURRENCY MANIPULATION BUT THE GLOBAL FLOW OF FUNDS IS SO VAST CLINTON OFFICIALS SAID THAT THE U. S. GOVERNMENT CAN'T UNILATERALLY PUSH THE YEN IN ANY DIRECTION FOR A SUSTAINED PERIOD OF TIME WITH THE U. S. ECONOMY RECOVERING AND JAPAN'S IN THE DOLDRUMS MARKET FORCES MAY WEAKEN THE YEN IF THE U. S. TRIED TO REVERSE THAT TREND AND FAILED IT WOULD MAKE THE CLINTON ADMINISTRATION SEEM IMPOTENT THE U. S. IS CONSIDERING VARIOUS OTHER TACTICS IT MAY TACITLY ENDORSE LEGISLATION BY HOUSE MAJORITY LEADER RICHARD GEPHARDT D. MISSOURI TO WRITE INTO LAW THE GOALS AND MEASUREMENTS THE U. S. TRIED TO NEGOTIATE WITH JAPAN SEPARATELY THE FEDERAL TRADE COMMISSION IS PURSUING AN ANTITRUST INVESTIGATION BEGUN IN THE BUSH ADMINISTRATION OF THE PURCHASING PRACTICES OF JAPANESE CAR MAKERS LOCATED IN THE U. S. WHILE THE F. T. C. DOESN'T APPEAR LIKELY TO BRING A CASE THE JUSTICE DEPARTMENT ALSO IS LOOKING AT ANTICOMPETITIVE PRACTICES OF JAPANESE AUTO COMPANIES U. S. OFFICIALS SAID IN A MOVE ADVOCATED BY FREE TRADE CRITICS OF THE ADMINISTRATION WHO DISLIKE U. S. MUSCLING OF JAPAN THE U. S. MAY BRING A BROAD TRADE ACTION AGAINST JAPAN AT THE G. A. T. T. SUCH A COMPLAINT WOULD ALLEGE THAT JAPAN'S MARKET BARRIERS NULLIFY AND IMPAIR THE TRADE LIBERALIZATION PLEDGES JAPAN HAS MADE AS A G. A. T. T. PARTNER WINNING SUCH A G. A. T. T. CASE IS A LONGSHOT BUT WOULD HAVE THE EFFECT OF PUTTING JAPAN ON TRIAL FOR THE INVISIBLE TRADE BARRIERS THAT THE U. S. SAYS ANIMATES ITS GRIEVANCES IN THE FRAMEWORK TALKS JAPAN SEIZED THE HIGH GROUND BY CONTENDING THAT THE U. S. WAS ABANDONING FREE MARKET PRINCIPLES QUOTE MY ADMINISTRATION IS PROMOTING DEREGULATION QUOTE MR. HOSOKAWA SAID IN WASHINGTON SO THE U. S. EFFORTS QUOTE RUN RIGHT IN THE FACE OF OUR BASIC TENET QUOTE THE U. S. DEMANDS CALL FOR A MIX OF GOVERNMENT CONTROL AND DEREGULATION IN THE AUTO INDUSTRY FOR INSTANCE THE U. S. WANTS JAPANESE CAR MAKERS TO BUY TWENTY PERCENT MORE AUTO PARTS ANNUALLY FROM FOREIGN VENDORS A PLEDGE THAT WOULD REQUIRE JAPANESE GOVERNMENT OVERSIGHT BUT AT THE SAME TIME THE U. S. IS PRESSING TOKYO TO DEREGULATE ITS INSPECTION AND CERTIFICATION SYSTEM AND TO LOOSEN THE GRIP JAPANESE CAR MAKERS HAVE ON AUTO DEALERS THOSE MOVES WOULD REDUCE THE POWER OF THE JAPANESE BUREAUCRACY TRADE WITH JAPAN WASN'T FREE BEFORE SAID WHITE HOUSE ECONOMIST ALAN BLINDER WE'RE TRYING TO NUDGE THE MARKET TO PRODUCE RESULTS MORE CONSISTENT WITH FREER TRADE NEVERTHELESS THE CLINTON ADMINISTRATION HAS CLEARLY LOST THE PUBLIC RELATIONS BATTLE IN JAPAN IN THE PAST SUCH A SUMMIT WOULD HAVE TRIGGERED ALARM BELLS IN TOKYO WITH PANIC ABOUT FRAYING TIES WITH THE COUNTRY'S MOST IMPORTANT ALLY THE WEEKEND TALK SHOWS DID CARRY SUCH TITLES AS THE U. S. JAPAN ECONOMIC WAR BUT INTEREST IN THE TOPIC SEEMED TO FADE QUICKLY BY SUNDAY THE PRESS WAS MORE CONCERNED WITH TAXES AND TOKYO'S SATURDAY SNOWSTORM THE HEAVIEST IN TWENTY FIVE YEARS THE CALM REACTION TO THE SUMMIT BREAKDOWN WAS A WELCOME RELIEF TO MR. HOSOKAWA WHO HAS BEEN BATTERED BY DOMESTIC POLITICAL STORMS LATELY ANALYSTS SAID HOWEVER THAT THE FAILED SUMMIT COULD START TO HURT HIM IF U. S. TRADE PRESSURE WORSENS JAPAN'S PERSISTENT RECESSION THE AVERAGE PERSON PREFERS THAT HE PAY MORE ATTENTION TO THE ECONOMY THAN TO NATIONALISTIC INDEPENDENCE SAID TAKAO TOSHIKAWA THE EDITOR OF A POLITICAL NEWSLETTER ITALIAN PRIME MINISTER CARLO AZEGLIO CIAMPI SAID THE ITALIAN BANKING SYSTEM IS FINANCIALLY SOLID THE PRIME MINISTER ISSUED HIS DEFENSE OF THE BANKING SECTOR IN THE AFTERMATH OF A REPORT FROM MOODY'S INVESTORS SERVICE INCORPORATED ON THURSDAY IN WHICH THE RATINGS AGENCY SAID IT FORESEES SIGNIFICANT STRESS ON THE CREDIT RATINGS OF ITALIAN BANKS OVER THE NEXT FEW YEARS MR. CIAMPI SAID ITALY'S BANKING SYSTEM IS CAPABLE OF GIVING INDUSTRY QUOTE A FUNDAMENTAL CONTRIBUTION FOR GETTING THROUGH THE RECESSION AND LAUNCHING ECONOMIC RECOVERY QUOTE HE ALSO SAID THE ITALIAN BANKING INDUSTRIES' DIFFICULTIES ARE THOSE CONNECTED TO THE CRISIS THAT HAS AFFECTED THE ENTIRE EUROPEAN ECONOMY ITALY'S BANKING SECTOR HAS BEEN HIT BY PROBLEM LOANS PARTICULARLY TO THE TROUBLED FERRUZZI COMPANY CONGLOMERATE BUT IT ALSO HASN'T BEEN IMMUNE TO CHARGES OF CORRUPTION MOST RECENTLY SEVERAL DIRECTORS OF ITALIAN SAVINGS BANK CASSA DI RISPARMIO DELLE PROVINCIE LOMBARDE KNOWN AS CARIPLO WERE CHARGED WITH ILLEGAL USE OF CARIPLO PENSION FUND MONEY AS WELL AS WITH SOME IRREGULARITIES CONCERNING REAL ESTATE DEALS PLAINS RESOURCES INCORPORATED HOUSTON SAID CREDIT AVAILABLE TO IT INCREASED TO FIFTY FIVE MILLION DOLLARS FROM FORTY MILLION DOLLARS THE OIL AND GAS COMPANY SAID AN AMENDED AGREEMENT WITH CREDITOR INTERNATIONALE NEDERLANDEN U. S. CAPITAL CORPORATION A UNIT OF AMSTERDAM BASED INTERNATIONALE NEDERLANDEN GROEP PROVIDES FOR INITIAL AVAILABILITY OF FIFTY MILLION DOLLARS PLAINS SAID IT BORROWED THIRTY FIVE POINT SIX MILLION DOLLARS AS OF DECEMBER THIRTY FIRST PHIL KRAMER VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE CREDIT INCREASE WILL ENABLE THE COMPANY TO IMPLEMENT ITS NINETEEN NINETY FOUR CAPITAL PROGRAM OF FIFTEEN MILLION DOLLARS TO TWENTY MILLION DOLLARS EVEN IF CRUDE OIL PRICES REMAIN AT THEIR CURRENT LEVEL NATIONAL SECURITY GROUP INCORPORATED SAID A CIRCUIT COURT JURY IN RUSSELL COUNTY ALABAMA ORDERED A COMPANY SUBSIDIARY TO PAY THREE POINT FIVE MILLION DOLLARS IN A PERSONNEL CASE THE VERDICT AGAINST NATIONAL SECURITY INSURANCE COMPANY STEMMED FROM LITIGATION INVOLVING THE DEMOTION AND REASSIGNMENT OF A MARKETING REPRESENTATIVE NATIONAL SECURITY GROUP SAID ITS SUBSIDIARY IS FILING POST TRIAL MOTIONS AND INTENDS TO FILE AN APPEAL IF NECESSARY TO THE ALABAMA SUPREME COURT A SPOKESMAN FOR NATIONAL SECURITY GROUP AN INSURER BASED IN ELBA ALABAMA SAID THE COMPANY WOULD BE IN A BETTER POSITION TO DETERMINE WHAT CONSEQUENCES IF ANY THE VERDICT MIGHT HAVE ON ITS ACCOUNTING STATEMENTS ONCE ALL POST TRIAL MOTIONS HAVE BEEN RULED UPON IN NASDAQ STOCK MARKET TRADING FRIDAY NATIONAL SECURITY GROUP CLOSED AT TWENTY SIX DOLLARS A SHARE UNCHANGED SENATOR KAY BAILEY HUTCHISON'S ACQUITTAL ON STATE ETHICS CHARGES IN A BIZARRE FINALE MINUTES AFTER HER TRIAL BEGAN FRIDAY LEAVES THE TEXAS REPUBLICAN THE FRONT RUNNER FOR RE ELECTION THIS YEAR DUE TO DOUBLE JEOPARDY PROTECTIONS SENATOR HUTCHISON CAN'T BE TRIED AGAIN ON THE CRIMINAL CHARGES THAT AS STATE TREASURER FROM NINETEEN NINETY ONE TO MID NINETEEN NINETY THREE SHE USED STATE WORKERS FOR POLITICAL AND PERSONAL TASKS AND THEN SOUGHT TO COVER UP THE EVIDENCE BY DESTROYING RECORDS EVEN BEFORE THE TRIAL'S FINAL TWIST THE STATE PROSECUTORS' CASE HAS BEEN PLAGUED BY TECHNICAL SNAFUS THAT TWICE FORCED THEM TO SEEK NEW INDICTMENTS THE FRESHMAN SENATOR HAILED THE OUTCOME IN FORT WORTH WHERE THE TRIAL HAD BEEN MOVED AFTER HER DEFENSE LAWYERS ARGUED THAT AN UNBIASED JURY COULDN'T BE FOUND IN AUSTIN REPEATING HER CONTENTION THAT THE WHOLE AFFAIR WAS A DEMOCRATIC PLOT SHE SAID AFTERWARD QUOTE THE LADY SHOWED SHE COULD TAKE THE WORST THAT A CORRUPTION OF THE POLITICAL SYSTEM COULD GIVE QUOTE THE INDIGNANT PROSECUTOR TRAVIS COUNTY DISTRICT ATTORNEY RONNIE EARLE THE NEXT DAY TOOK HIS CASE TO THE PUBLIC ARENA GIVING REPORTERS ACCESS TO REAMS OF DOCUMENTS THAT HE ARGUED SHOWED A MASSIVE MISUSE OF STATE EMPLOYEES AND STATE RESOURCES SENATOR HUTCHISON SUPPORTED THE RELEASE OF THE EVIDENCE ACCORDING TO A PRELIMINARY REVIEW BY THE ASSOCIATED PRESS STATE WORKERS WROTE MRS. HUTCHISON'S THANK YOU NOTES FOR POLITICAL TRIPS AND FOR GIFTS RECORDED POLITICAL CONTRIBUTIONS AND HANDLED HER POLITICAL SCHEDULE MR. EARLE ABRUPTLY ABANDONED HIS CASE AGAINST SENATOR HUTCHISON WHEN JUDGE JOHN ONION JUNIOR REFUSED TO RULE ON WHETHER THOSE DOCUMENTS SEIZED FROM THE STATE TREASURY ON THE BASIS OF A GRAND JURY SUBPOENA WERE ADMISSIBLE EVIDENCE THE SENATOR'S DEFENSE TEAM CONTENDED THE ITEMS WERE ILLEGALLY SEIZED BECAUSE INVESTIGATORS HAD NO SEARCH WARRANT GIVEN THE EVIDENTIARY SNARL MR. EARLE HOPED THE JUDGE WOULD DISMISS THE CHARGES BEFORE A JURY WAS SWORN IN ONCE A JURY WAS SWORN IN DOUBLE JEOPARDY WOULD PREVENT HIM FROM REINDICTING HER WHEN THE JUDGE ORDERED THE TRIAL TO PROCEED MR. EARLE REFUSED TO PROSECUTE AND JUDGE ONION ORDERED THE JURY TO ACQUIT THE SENATOR DEMOCRATS AND REPUBLICANS AGREED THAT THE OUTCOME WAS A POLITICAL AS WELL AS LEGAL BOON TO SENATOR HUTCHISON SHE WAS ELECTED WITH SIXTY SEVEN PERCENT OF THE VOTE IN A SPECIAL CONTEST LAST SUMMER REPLACING LLOYD BENTSEN AFTER HE WAS NAMED TREASURY SECRETARY AND THE LEGAL AFFAIR HAD CUT INTO HER POPULARITY BUT NOW SHE CAN CONCENTRATE ON RE ELECTION WHILE DEMOCRATS FIGHT TO PICK A RIVAL IN A MARCH EIGHTH PRIMARY CANDIDATES INCLUDE FORMER STATE ATTORNEY GENERAL JIM MATTOX REPRESENTATIVE MICHAEL ANDREWS AND BUSINESSMAN RICHARD FISHER EVEN SO THE ALLEGATIONS WON'T DISAPPEAR AS A POLITICAL ISSUE IT'S NOT LIKE A JURY OF TWELVE FOUND HER INNOCENT SAID SAM KINCH EDITOR OF TEXAS WEEKLY A STATE POLITICAL NEWSLETTER MOREOVER THE RELEASE OF THE WOULD BE EVIDENCE HE SAID GIVES WHOEVER THE DEMOCRATIC NOMINEE IS THE CHANCE TO TROT ALL THIS OUT THE DEMOCRATIC FAVORITE IS MR. MATTOX WHO HAS ETHICAL SCARS OF HIS OWN BUT HE ALSO COULD UNDERCUT SENATOR HUTCHISON'S CENTRAL COMPLAINT THAT MR. EARLE WAS LEADING A DEMOCRATIC WITCH HUNT MR. MATTOX WAS TRIED BY MR. EARLE IN THE MID NINETEEN EIGHTIES ON A BRIBERY RELATED CHARGE AND ACQUITTED P. ROY VAGELOS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MERCK AND COMPANY SAID THE PROFITABILITY OF THE PHARMACEUTICAL INDUSTRY COULD BE HEADED FOR TROUBLE BUT THAT MERCK IS WELL POSITIONED FOR THE CHANGES AHEAD QUOTE THE PROFITABILITY OF THE INDUSTRY SURELY IS DECREASING ABSOLUTELY MR. VAGELOS SAID IN AN INTERVIEW AT THE BIG DRUG MAKER'S WASHINGTON OFFICE YOU CAN'T LOOK AT IT OVER ONE YEAR TWO YEARS HE CONTINUED BUT BY THE YEAR TWO THOUSAND HE SAID THE INDUSTRY WILL BE IN BAD SHAPE HOWEVER MR. VAGELOS CONTENDED MERCK WILL BE IN GREAT SHAPE BECAUSE WE TOOK ALL THE RIGHT STEPS MERCK IS INCREASINGLY GETTING INVOLVED IN MANAGED CARE PARTICULARLY WITH ITS ACQUISITION LAST YEAR OF MEDCO CONTAINMENT SERVICES INCORPORATED A LARGE MANAGED CARE PHARMACEUTICAL DISTRIBUTOR MR. VAGELOS SAID WE HAVE FIGURED OUT WHERE THE MARKET IS GOING HE SAID QUOTE AS MANAGED CARE HAS DEVELOPED AMONG DOCTORS AND HOSPITALS IT IS DEVELOPING ON THE PHARMACEUTICAL SIDE AND WE'RE RIGHT IN THE MIDDLE OF IT MR. VAGELOS INDICATED THAT DRUG COMPANIES WILL FIGHT THE REGULATORY MEASURES IN PRESIDENT CLINTON'S HEALTH REFORM BILL AND OTHER PROPOSALS THE THING THAT SCARES ME THE MOST AND THAT I'M VIOLENTLY OPPOSED TO HE SAID IS THE POSSIBILITY OF A GOVERNMENT AGENCY COMMITTEE OR SOMEBODY DETERMINING WHETHER A BREAKTHROUGH PRODUCT WE'VE WORKED ON FOR FIFTEEN YEARS IS FAIRLY PRICED I'D RATHER HAVE THE FREE MARKET DETERMINE PRICE REGARDLESS OF WHETHER DRUG COMPANIES ARE SQUEEZED BY PRICE CONTROLS OR OTHER COST CURBING MEASURES UNDER HEALTH CARE REFORM LEGISLATION MERCK WILL CONTINUE DOING BREAKTHROUGH RESEARCH NO MATTER WHAT HE SAID HE SAID THAT THE COMPANY'S PIONEERING SUCCESS IN PHARMACEUTICAL MANAGED CARE WILL ENABLE IT TO FUND SUCH SCIENCE LLOYDS BANK P. L. C. REPORTED THAT PRETAX EARNINGS FOR NINETEEN NINETY THREE ROSE TWENTY NINE PERCENT AS THE BANK FURTHER REDUCED PROVISIONS FOR BAD AND DOUBTFUL DEBT CONTAINED COSTS AND BENEFITED FROM AN IMPROVING ECONOMY IN THE UNITED KINGDOM PRETAX PROFIT ROSE TO ONE POINT OH THREE BILLION POUNDS ONE POINT FIVE ONE BILLION DOLLARS THE DIVIDEND WAS INCREASED TWENTY PERCENT TO TWENTY TWO POINT ONE POUNDS PENCE A SHARE FROM EIGHTEEN POINT FOUR POUNDS PENCE THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS DURING NINETEEN NINETY THREE LLOYDS LOWERED ITS PROVISION FOR BAD AND DOUBTFUL DEBT BY NINE PERCENT TO FIVE HUNDRED THREE MILLION POUNDS FOR NINETEEN NINETY THREE IT ALSO CUT ITS WORK FORCE BY TWO THOUSAND LAST YEAR BRINGING THE TOTAL REDUCTION OVER THE PAST FOUR YEARS TO MORE THAN EIGHTEEN THOUSAND CHAIRMAN SIR ROBIN IBBS SAID THE BANK REMAINS QUOTE WATCHFUL QUOTE FOR WAYS TO MAKE USE OF ITS CAPITAL GROWTH INCLUDING POSSIBLE ACQUISITIONS THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND THREE SIXTEENTHS PERCENT HIGH TWO AND FIFTEEN SIXTEENTHS PERCENT LOW THREE PERCENT NEAR CLOSING BID THREE AND ONE SIXTEENTH PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT THREE FIVE PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT FOUR OH PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT FOUR FIVE PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT FOUR EIGHT PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT FIVE OH PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT FIVE FIVE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT SIX OH PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT FOUR TWO PERCENT THIRTY DAYS THREE POINT FOUR EIGHT PERCENT SIXTY DAYS THREE POINT FIVE TWO PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT SEVEN TWO PERCENT ONE MONTH TWO POINT SEVEN EIGHT PERCENT TWO MONTHS TWO POINT EIGHT THREE PERCENT THREE MONTHS THREE POINT OH ONE PERCENT SIX MONTHS THREE POINT THREE OH PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT THREE ONE PERCENT ONE MONTH THREE POINT FOUR ONE PERCENT THREE MONTHS THREE POINT FIVE NINE PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT THREE OH PERCENT THIRTY DAYS THREE POINT THREE FOUR PERCENT SIXTY DAYS THREE POINT THREE SEVEN PERCENT NINETY DAYS THREE POINT FOUR THREE PERCENT ONE HUNDRED TWENTY DAYS THREE POINT FOUR EIGHT PERCENT ONE HUNDRED FIFTY DAYS THREE POINT FIVE FIVE PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT ONE MONTH THREE AND ONE HALF PERCENT THREE AND THREE EIGHTHS PERCENT TWO MONTHS THREE AND NINE SIXTEENTHS PERCENT THREE AND SEVEN SIXTEENTHS PERCENT THREE MONTHS THREE AND FIVE EIGHTHS PERCENT THREE AND ONE HALF PERCENT FOUR MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT THREE AND NINE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE QUARTERS PERCENT THREE AND FIVE EIGHTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND THREE EIGHTHS PERCENT ONE MONTH THREE AND NINE SIXTEENTHS PERCENT THREE MONTHS THREE AND THREE QUARTERS PERCENT SIX MONTHS FOUR AND ONE EIGHTH PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT NINE ONE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT TWO FIVE PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY SEVENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT TWO FOUR PERCENT THIRTEEN WEEKS THREE POINT FOUR OH PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SEVEN POINT OH EIGHT PERCENT SIXTY DAYS SEVEN POINT ONE FOUR PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SEVEN POINT OH FIVE PERCENT SIXTY DAYS SEVEN POINT ONE FIVE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT TWO FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN THREE PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS ARC INTERNATIONAL CORPORATION TORONTO EXPECTS TO RAISE BETWEEN TEN MILLION CANADIAN DOLLARS AND TWELVE MILLION CANADIAN DOLLARS SEVEN POINT FOUR MILLION U. S. DOLLARS TO EIGHT POINT NINE MILLION U. S. DOLLARS FROM AN INITIAL PUBLIC OFFERING OF A ITS CABLE TELEVISION EQUIPMENT SUBSIDIARY THE COMPANY'S UNDERWRITER SAID A SPOKESMAN FOR RESEARCH CAPITAL CORPORATION THE LEAD UNDERWRITER SAID THE DIVERSIFIED MANUFACTURER PLANS TO SELL BETWEEN FORTY PERCENT AND FIFTY PERCENT OF THE SUBSIDIARY CABLETEL COMMUNICATIONS CORPORATION THROUGH THE OFFERING CABLETEL HAD REVENUE LAST YEAR OF THIRTY FOUR MILLION CANADIAN DOLLARS ARC SAID PROCEEDS WILL BE USED TO REDUCE DEBT AND FOR OTHER CORPORATE PURPOSES THE FOLLOWING U. S. TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT G. T. E. NORTH INCORPORATED TWO HUNDRED MILLION DOLLARS OF FIVE YEAR NOTES VIA COMPETITIVE BID A. B. T. BUILDING PRODUCTS CORPORATION TWO MILLION SHARES VIA MERRILL LYNCH AND COMPANY A. C. F. INDUSTRIES HOLDING CORPORATION TWO HUNDRED MILLION DOLLARS OF FIVE YEAR SENIOR SECURED ZERO COUPON NOTES VIA MERRILL LYNCH A. C. F. INDUSTRIES INCORPORATED TWO HUNDRED FIFTY MILLION DOLLARS OF TEN YEAR SENIOR NOTES VIA MERRILL LYNCH AMERICAN SUPERCONDUCTOR CORPORATION ONE MILLION SHARES VIA C. S. FIRST BOSTON AND INVEMED AMPHENOL CORPORATION ABOUT SEVEN POINT SEVEN MILLION SHARES VIA MERRILL LYNCH CIRRUS LOGIC INCORPORATED THREE POINT ONE MILLION SHARES VIA GOLDMAN SACHS AND COMPANY CONCORD HOLDING CORPORATION INITIAL TWO POINT ONE MILLION SHARES VIA BEAR STEARNS AND COMPANY AND MONTGOMERY SECURITIES PRT FUNDING CORPORATION EIGHTY FIVE MILLION DOLLARS OF TEN YEAR SENIOR NOTES VIA SALOMON BROTHERS INCORPORATED GLOBAL PRIVATIZATION FUND INITIAL FOUR MILLION SHARES VIA KIDDER PEABODY AND COMPANY HARVEY'S CASINO RESORT INITIAL TWO POINT NINE MILLION SHARES VIA DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION AND SALOMON BROTHERS MARTIN MARIETTA MATERIALS INCORPORATED INITIAL SEVEN POINT SEVEN MILLION SHARES VIA MORGAN STANLEY AND COMPANY MORGAN STANLEY INDIA INVESTMENT FUND INITIAL FOUR MILLION SHARES VIA MORGAN STANLEY REDMAN INDUSTRIES ONE POINT THREE MILLION SHARES VIA DILLON READ AND COMPANY REPUBLIC OF COLOMBIA TWO HUNDRED FIFTY MILLION DOLLARS OF TEN YEAR NOTES VIA MERRILL LYNCH XPEDITE SYSTEMS INCORPORATED INITIAL TWO MILLION SHARES VIA PRUDENTIAL SECURITIES INCORPORATED OHIO PUBLIC FACILITIES COMMISSION TWO HUNDRED FIFTY THREE MILLION DOLLARS OF HIGHEREDUCATION CAPITAL FACILITIES REVENUE BONDS VIA COMPETITIVE BID ONTARIO DEVELOPMENT AGENCY CALIFORNIA ONE HUNDRED THIRTY THREE POINT SEVEN MILLION DOLLARS OF TAX AND REVENUE ANTICIPATION NOTES TAXABLE VIA COMPETITIVE BID MARYLAND ONE HUNDRED SIXTY FOUR POINT FIVE MILLION DOLLARS OF GENERAL OBLIGATION BONDS VIA COMPETITIVE BID SAN FRANCISCO CITY AND COUNTY ONE HUNDRED SEVENTY FIVE POINT EIGHT MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR SEWER REVENUE REFUNDING BONDS VIA COMPETITIVE BID MASSACHUSETTS BAY TRANSPORTATION AUTHORITY ONE HUNDRED EIGHTY FIVE MILLION DOLLARS OF NOTES VIA COMPETITIVE BID ILLINOIS STUDENT ASSISTANCE COMMISSION ONE HUNDRED THIRTY FIVE MILLION DOLLARS OF BONDS VIA A PAINEWEBBER INCORPORATED GROUP MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY ONE HUNDRED SEVEN MILLION DOLLARS OF BONDS VIA A C. S. FIRST BOSTON GROUP NEW YORK LOCAL GOVERNMENT ASSISTANCE CORPORATION ONE HUNDRED FORTY SIX POINT FIVE MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR A BONDS VIA A W. R. LAZARD LAIDLAW AND MEAD INCORPORATED GROUP PHOENIX CIVIC IMPROVEMENT CORPORATION ARIZONA ONE HUNDRED TEN MILLION DOLLARS OF JUNIOR LIEN WATER SYSTEM REVENUE BONDS VIA A PRUDENTIAL SECURITIES GROUP SUFFOLK COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY N. Y. ONE HUNDRED NINETY POINT NINE MILLION DOLLARS OF BONDS VIA A DILLON READ GROUP VIRGINIA EDUCATION LOAN AUTHORITY ONE HUNDRED FORTY POINT ONE MILLION DOLLARS OF BONDS VIA A SMITH BARNEY SHEARSON INCORPORATED GROUP HARKEN ENERGY CORPORATION SAID IT WILL TAKE A NONCASH FOURTH QUARTER CHARGE OF THREE POINT ONE MILLION DOLLARS TO WRITE DOWN CERTAIN ASSETS IT PLANS TO SELL THE DALLAS ENERGY CONCERN SAID IT WILL LIQUIDATE SOME IDLE DRILLING RIGS AND RELATED EQUIPMENT AND USE THE PROCEEDS IN ITS INTERNATIONAL OPERATIONS IN BAHRAIN AND COLOMBIA THE PLANNED SALES DON'T INVOLVE HARKEN'S SUPREME WELL SERVICE OPERATIONS IN TEXAS HARKEN SAID FOR THE NINETEEN NINETY TWO FOURTH QUARTER HARKEN REPORTED NET INCOME OF EIGHT HUNDRED SIX THOUSAND DOLLARS OR ONE CENT A SHARE INCLUDING A TAX BENEFIT OF ONE HUNDRED SEVENTY TWO THOUSAND DOLLARS REVENUE FOR THAT QUARTER WAS TWO POINT FIVE MILLION DOLLARS THE SECURITIES AND EXCHANGE COMMISSION LOOKING TO CRACK DOWN ON CLASS ACTION ABUSES IS REVIEWING THE LEGAL FEES REQUESTED IN A BIG PRUDENTIAL SECURITIES INCORPORATED PARTNERSHIP CASE THE S. E. C. IS EXAMINING THE CIRCUMSTANCES SURROUNDING THE FEE REQUEST BY PLAINTIFFS' LAWYERS IN A NINETY POINT SEVEN MILLION DOLLAR SETTLEMENT REACHED LAST MONTH BETWEEN ONE HUNDRED FIFTEEN THOUSAND INVESTORS WHO BOUGHT ENERGY LIMITED PARTNERSHIPS FROM THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER PLAINTIFFS' LAWYERS STAND TO RECEIVE AS MUCH AS TWENTY SEVEN MILLION DOLLARS IN FEES IN THE CASE THE REVIEW FOLLOWS CLOSELY S. E. C. CHAIRMAN ARTHUR LEVITT'S RECENT SPEECH IN WHICH HE TOLD SECURITIES LAWYERS HE WAS CONCERNED ABOUT CLASS ACTION ABUSES CRITICS SAY CLASS ACTION LAWYERS SOMETIMES POCKET FAT FEES FOR RELATIVELY LITTLE WORK SOME RECENT CLASS ACTION SETTLEMENTS INVOLVING BIG BROKERAGE FIRMS HAVE BEEN ASSAILED AS SELLOUTS REAPING ONLY PENNIES ON THE DOLLAR FOR CLAIMANTS THE S. E. C. DECLINED TO COMMENT BUT THE PEOPLE FAMILIAR WITH THE MATTER SAID ITS INTEREST WAS TRIGGERED BY CRITICISM OF THE PRUDENTIAL SETTLEMENT BY CALIFORNIA SECURITIES REGULATORS IN A LETTER SENT LAST WEEK TO THE FEDERAL JUDGE OVERSEEING THE PRUDENTIAL CASE CALIFORNIA SECURITIES DIRECTOR GARY MENDOZA SAID THE CLASS ACTION LAWYERS DIDN'T DESERVE TO BASE THEIR FEES ON THE NINETY MILLION DOLLAR SETTLEMENT IN THE CASE BECAUSE THEY DIDN'T PLAY A BIG ROLE IN CRAFTING THE ACCORD INDEED MR. MENDOZA SAID THE LAWYERS BATTLED WITH STATE REGULATORS OVER AN EARLIER SETTLEMENT PROPOSAL BY PRUDENTIAL THE EARLIER OFFER FOR JUST THIRTY SEVEN MILLION DOLLARS IN CASH SPARKED CRITICISM BY STATE REGULATORS BUT WAS BACKED BY MANY CLASS ACTION LAWYERS MARCEL LIVAUDAIS JUNIOR A FEDERAL JUDGE IN NEW ORLEANS OVERSEEING THE CASE HAD SAID HE HAD QUOTE SERIOUS RESERVATIONS QUOTE ABOUT THE INITIAL SETTLEMENT PROPOSAL IN THE CASE THE LAWSUIT ACCUSED PRUDENTIAL OF MISLEADING INVESTORS ON THE RISK AND RETURNS OF ONE POINT FOUR FIVE BILLION DOLLARS IN ENERGY PARTNERSHIPS WHOSE VALUE HAD SINCE SLUMPED IN HALF IT IS FUNDAMENTALLY UNFAIR TO THE INJURED INVESTORS TO ALLOW THE CLASS ACTION LAWYERS WHO SUPPORTED THE THIRTY SEVEN MILLION DOLLAR SETTLEMENT TO BENEFIT IN ANY WAY FROM THE EFFORTS OF STATE SECURITIES REGULATORS MR. MENDOZA'S LETTER SAID THEIR EFFORTS MADE LITTLE IF ANY REAL CONTRIBUTION TO THE SUBSTANTIAL INCREASE IN THE SETTLEMENT MR. MENDOZA URGED JUDGE LIVAUDAIS TO BASE THE LEGAL FEES ON THE THIRTY SEVEN MILLION DOLLAR SETTLEMENT PROPOSAL WHICH WOULD SEND A STRONG SIGNAL TO THE CLASS ACTION BAR THAT IF THEY ARE TO EARN THEIR FEES IT IS CRITICAL THAT THE ONLY INTEREST THEY SERVE DURING A CLASS ACTION LITIGATION IS THEIR CLIENTS' EDWARD GROSSMAN LEAD CLASS ACTION LAWYER IN THE PRUDENTIAL CASE COULDN'T BE REACHED TO COMMENT FOR THEIR PART SOME PLAINTIFFS' LAWYERS SAY THEY WERE PIVOTAL IN HELPING TO TRIGGER A SALE OF THE PRUDENTIAL ENERGY PARTNERSHIPS IN JUNE TO PARKER AND PARSLEY PETROLEUM COMPANY INVESTORS RECEIVED FOUR HUNDRED NINETY ONE MILLION DOLLARS FROM THE PARKER AND PARSLEY TRANSACTION THE SALE COUPLED WITH THE NINETY MILLION DOLLAR SETTLEMENT AND DISTRIBUTIONS ALREADY PAID OUT BOOSTED TO ONE POINT TWO FOUR BILLION DOLLARS OR AN AVERAGE OF EIGHTY FIVE CENTS ON THE DOLLAR THE AMOUNT INVESTORS WILL END UP GETTING FOR THEIR ORIGINAL ONE POINT FOUR FIVE BILLION DOLLAR OUTLAY THIS WAS A CASE WITH GREAT RISK AND COULD HAVE RESULTED IN NO RECOVERY AT ALL SAYS CLINTON KRISLOV A PLAINTIFFS' LAWYER IN CHICAGO WHO HAD OBJECTED TO THE INITIAL PRUDENTIAL SETTLEMENT OFFER BUT BACKED THE RECENT ACCORD ALL THE PLAINTIFFS' ATTORNEYS AGREED THE FEES WOULD BE NO MORE THAN THIRTY PERCENT OF THE SETTLEMENT LAWYERS TYPICALLY RECEIVE BETWEEN TWENTY FIVE PERCENT AND ONETHIRD OF RECOVERIES MEANWHILE ANOTHER PENDING CLASS ACTION SETTLEMENT IS SURE TO ATTRACT THE S. E. C.'S ATTENTION THE PEOPLE SAID THAT'S A SIX MILLION DOLLAR CASH SETTLEMENT PROPOSAL IN A CLASS ACTION CASE FILED IN A CHICAGO FEDERAL COURT BY SIXTEEN THOUSAND FIVE HUNDRED MERRILL LYNCH AND COMPANY INVESTORS IN ARVIDA SLASH J. M. B. PARTNERS L. P. THE SECOND A TWO HUNDRED THIRTY FOUR MILLION DOLLAR PARTNERSHIP THAT BOUGHT RAW LAND TO DEVELOP HOMES MERRILL INVESTORS HAVE RECEIVED JUST TWENTY DOLLARS IN DISTRIBUTIONS FOR EACH ONE THOUSAND DOLLARS UNIT SINCE THE ARVIDA PARTNERSHIP WAS LAUNCHED IN NINETEEN EIGHTY NINE AND AN APRIL NOTICE TO INVESTORS SAID IT QUOTE APPEARS UNLIKELY THAT THE LIMITED PARTNERS WILL RECOVER MUCH IF ANY QUOTE OF THEIR CAPITAL INVESTMENT IN THE PARTNERSHIP UNDER THE ARVIDA ACCORD INVESTORS WOULD RECEIVE ABOUT FOUR MILLION DOLLARS AFTER LEGAL FEES OR JUST PENNIES ON THE DOLLAR BOTH MERRILL AND BEIGEL AND SANDLER A CHICAGO LAW FIRM THAT FILED THE CLASS ACTION CASE SAY THEY BELIEVE THE ARVIDA SETTLEMENT IS FAIR A FEDERAL JUDGE IS EXPECTED TO SOON RULE ON THE PROPOSAL INVESTORS HAD LESS THAN A MONTH TO DECIDE WHETHER OR NOT TO OPT OUT OF THE SETTLEMENT ACCORD INCLUDING TIME DURING THE THANKSGIVING HOLIDAY GENERAL INSTRUMENT CORPORATION CHICAGO SAID IT ENTERED A CROSS LICENSING AGREEMENT FOR DIGITAL TECHNOLOGIES WITH ZENITH ELECTRONICS CORPORATION TERMS WEREN'T DISCLOSED GENERAL INSTRUMENT WILL LICENSE ITS DIGICIPHER BRAND ACCESS CONTROL DIGITAL COMPRESSION AND TRANSMISSION TECHNOLOGIES TO ZENITH DIGICIPHER CONVERTS ANALOG TELEVISION SIGNALS INTO DIGITAL SIGNALS THEN SQUEEZES THE SIGNALS TO AS LITTLE AS ONETENTH THEIR ORIGINAL SIZE ENABLING THE USER TO SEND OR RECEIVE MANY MORE SIGNALS OVER LESS SPACE ZENITH WILL LICENSE TO GENERAL INSTRUMENT ITS V. S. B. TRANSMISSION TECHNOLOGY WHICH EXPANDS THE CAPABILITIES OF DIGITAL CABLE T. V. SYSTEMS BEYOND FIVE HUNDRED CHANNELS TO ONE THOUSAND GENERAL INSTRUMENT DEVELOPS AND MAKES BROAD BAND TRANSMISSION DISTRIBUTION AND ACCESS CONTROL TECHNOLOGIES FOR CABLE SATELLITE AND TERRESTRIAL BROADCASTING APPLICATIONS ZENITH BASED IN GLENVIEW ILLINOIS IS A CONSUMER ELECTRONICS CABLE AND NETWORKING PRODUCTS COMPANY ROGERS COMMUNICATIONS INCORPORATED LAUNCHED ITS LONG AWAITED BID TO ACQUIRE MACLEAN HUNTER LIMITED OFFERING TWO POINT SEVEN NINE BILLION CANADIAN DOLLARS TWO POINT OH EIGHT BILLION U. S. DOLLARS FOR THE SHARES OF THE TORONTO BASED CABLE TELEVISION BROADCASTING AND PUBLISHING CONCERN THAT IT DOESN'T ALREADY OWN ROGERS SAID IT IS OFFERING SEVENTEEN CANADIAN DOLLARS A SHARE IN CASH AND ONE PARTICIPATION RIGHT FOR EACH SHARE OF MACLEAN HUNTER THE RIGHTS ALLOW RECIPIENTS TO RECEIVE ABOUT NINETY TWO PERCENT OF THE NET PROCEEDS FROM THE SALE OF MACLEAN HUNTER'S U. S. CABLE TELEVISION ASSETS IN EXCESS OF ONE POINT FIVE BILLION CANADIAN DOLLARS IF ROGERS SUCCEEDS IN ACQUIRING MACLEAN HUNTER THE MOVE WOULD CONSOLIDATE ITS POSITION AS CANADA'S LARGEST CABLE TELEVISION OPERATOR THE MACLEAN HUNTER CABLE SYSTEMS WOULD INCREASE ROGERS' SUBSCRIBERS TO A THIRD OF THOSE CANADIAN HOUSEHOLDS WITH CABLE FROM ABOUT A QUARTER CURRENTLY BUT ROGERS STILL HAS A NUMBER OF HURDLES TO CLEAR FIRST AND FOREMOST IS MACLEAN HUNTER'S RESPONSE TO ITS OFFER BECAUSE THE BID IS OPEN ONLY UNTIL MARCH FIFTEENTH IT DOESN'T MEET THE CRITERIA OF A SO CALLED QUOTE PERMITTED BID QUOTE UNDER THE TERMS OF MACLEAN HUNTER'S SHAREHOLDER RIGHTS PLAN TO BE A PERMITTED BID THE OFFER MUST REMAIN OPEN FOR AT LEAST ONE HUNDRED TWENTY DAYS EDWARD S. TED ROGERS PRESIDENT AND CHIEF EXECUTIVE OF ROGERS COMMUNICATIONS SAID HE IS PREPARED TO CHALLENGE THE RIGHTS PLAN IN COURT IF MACLEAN HUNTER DECIDES TO TRIGGER THE POISON PILL AND ALLOW SHAREHOLDERS TO EXERCISE RIGHTS TO ACQUIRE NEW SHARES OF THE COMPANY AT A FIFTY PERCENT DISCOUNT TO MARKET VALUE MAKING A TAKEOVER PROHIBITIVELY EXPENSIVE RONALD OSBORNE PRESIDENT AND CHIEF EXECUTIVE OF MACLEAN HUNTER SAYS THE COMPANY IS EXAMINING ALL OF OUR OPTIONS HE DECLINED TO ELABORATE BUT CONFIRMED THE COMPANY IS IN TALKS ABOUT SELLING SOME OF ITS ASSETS MACLEAN HUNTER HAS BEEN SEEKING A BUYER FOR ITS U. S. CABLE ASSETS SINCE LATE LAST YEAR A PROCESS THAT HAS ACCELERATED SINCE ROGERS DISCLOSED ITS INTEREST IN MACLEAN HUNTER TWO WEEKS AGO BUT MACLEAN HUNTER ALSO COULD SEEK OUT BUYERS FOR SOME OF ITS CANADIAN BROADCASTING AND PUBLISHING ASSETS MAKING IT A MUCH LESS ATTRACTIVE ACQUISITION ANALYSTS SAY THERE IS LITTLE LIKELIHOOD OF A COMPETING OFFER EMERGING FOR MACLEAN HUNTER AS A WHOLE CANADIAN LAW RESTRICTS FOREIGN OWNERSHIP OF MEDIA CONCERNS TO TWENTY PERCENT CONSIDERABLY LIMITING THE FIELD OF PROSPECTIVE BIDDERS ON THE WHOLE IT LOOKS AS THOUGH THERE'S BETTER VALUE THERE FOR THE SHAREHOLDERS WITH THE ROGERS BID THAN IN SELLING THE COMPANY OFF PIECEMEAL SAID CARLA LARSON AN ANALYST WITH BUNTING WARBURG INCORPORATED IN TORONTO MOREOVER MR. ROGERS TOLD ANALYSTS AT AN INVESTORS' CONFERENCE FRIDAY THAT INCREASED CONCENTRATION IN THE CANADIAN CABLE TELEVISION INDUSTRY IS NECESSARY TO FEND OFF COMPETITIVE THREATS FROM TELEPHONE COMPANIES AND U. S. DIRECT BROADCAST SATELLITES WHICH ARE LIKELY TO GIVE CANADIANS ACCESS TO HUNDREDS OF CHANNELS IN THE NEAR FUTURE WE HAVE TO HAVE A MULTIMEDIA COMPANY THAT CAN COMPETE AROUND THE WORLD MR. ROGERS SAID IF WE'RE ALL SMALL AND TIMID IN THIS COUNTRY WE'LL ALL BE OVERWHELMED MR. ROGERS IS ADAMANT THAT SEVENTEEN CANADIAN DOLLARS A SHARE IS HIS TOP OFFER QUOTE IF SOMEONE COMES AND BIDS SOME CRAZY PRICE THEY CAN TAKE IT QUOTE HE SAID NOTING THAT MACLEAN HUNTER SHARES HAD TRADED AT AROUND TWELVE CANADIAN DOLLARS FOR SEVERAL YEARS BEFORE ROGERS DISCLOSED ITS INTEREST IN TORONTO STOCK EXCHANGE TRADING FRIDAY MACLEAN HUNTER CLOSED AT SEVENTEEN POINT THREE SEVEN FIVE CANADIAN DOLLARS A SHARE UP THIRTY SEVEN POINT FIVE CANADIAN CENTS ROGERS CLASS B. SHARES JUMPED TO TWENTY ONE CANADIAN DOLLARS UP ONE CANADIAN DOLLAR IN TORONTO STOCK EXCHANGE TRADING FRIDAY THEY HAD FALLEN IN RECENT DAYS AFTER ROGERS SAID IT MIGHT OFFER STOCK AS WELL AS CASH FOR MACLEAN HUNTER MR. ROGERS SAID MACLEAN HUNTER SHAREHOLDERS COULD REALIZE ADDITIONAL VALUE FROM THE PARTICIPATION RIGHTS BUT MS. LARSON PUT THE MAXIMUM VALUE OF EACH RIGHT AT FORTY CANADIAN CENTS ADDING THAT FINANCING COSTS AND CAPITAL GAINS TAXES COULD REDUCE NET PROCEEDS FROM A SALE OF THE U. S. CABLE ASSETS ROGERS SAID ITS BID IS CONDITIONAL ON AT LEAST TWO THIRDS OF MACLEAN HUNTER SHARES BEING TENDERED AND ON MACLEAN HUNTER NOT ENTERING INTO ANY AGREEMENT TO SELL ITS U. S. CABLE TELEVISION ASSETS IT ALSO NEEDS APPROVAL FROM COMMUNICATIONS AND ANTITRUST REGULATORS IN BOTH CANADA AND THE U. S. REGULATORS MIGHT TAKE A YEAR TO REVIEW THE DEAL AND COULD INSIST THAT ROGERS DISPOSE OF SOME OF MACLEAN HUNTER'S CANADIAN ASSETS ANALYSTS SAY ROGERS SAID IT SOLD TWO HUNDRED SEVENTY MILLION CANADIAN DOLLARS OF A NEW CLASS OF CONVERTIBLE PREFERRED SHARES TO MR. ROGERS IN EXCHANGE FOR SIXTY FIVE POINT ONE MILLION CANADIAN DOLLARS IN CASH AND THE FOURTEEN POINT NINE MILLION COMMON SHARES OF MACLEAN HUNTER THAT MR. ROGERS ALREADY HELD MARK HEINZL CONTRIBUTED TO THIS ARTICLE HORIZON HEALTHCARE CORPORATION COMPLETED ITS ACQUISITION OF GREENERY REHABILITATION GROUP INCORPORATED AFTER REACHING AN ACCORD WITH REGULATORS WHO WERE CONCERNED ABOUT HORIZON'S RECORD OF PATIENT CARE NURSING HOME OPERATOR HORIZON ALBUQUERQUE N. M. PAID FORTY SEVEN POINT ONE MILLION DOLLARS IN STOCK FOR GREENERY WHICH HAS TWENTY REHABILITATION HOSPITALS HORIZON ALSO ASSUMED FIFTY FOUR POINT SEVEN MILLION DOLLARS IN GREENERY DEBT IN DECEMBER MASSACHUSETTS REGULATORS MOVED TO DELAY THE TRANSACTION CITING INSTANCES OF PATIENT MISTREATMENT AT HORIZON FACILITIES IN OHIO GREENERY IS BASED IN NEWTON MASSACHUSETTS HORIZON SAID FRIDAY IT AGREED TO SET UP A SPECIAL MANAGEMENT TEAM THAT WILL MONITOR HORIZON'S PATIENT CARE IN MASSACHUSETTS FOR EIGHTEEN MONTHS AND PROVIDE MONTHLY REPORTS TO THE STATE GREENERY SHAREHOLDERS WILL RECEIVE ONE HORIZON SHARE FOR EVERY GREENERY SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING HORIZON CLOSED AT TWENTY THREE DOLLARS A SHARE UNCHANGED GREENERY CLOSED AT FIVE DOLLARS A SHARE DOWN TWELVE POINT FIVE CENTS HORIZON HEALTHCARE CORPORATION WILL PAY GREENERY REHABILITATION GROUP INCORPORATED SHAREHOLDERS ZERO POINT TWO FIVE SHARE OF HORIZON STOCK FOR EACH GREENERY SHARE HELD AN ARTICLE YESTERDAY INCORRECTLY STATED THAT GREENERY SHAREHOLDERS WILL RECEIVE ONE HORIZON SHARE FOR EVERY GREENERY SHARE A SHAKY TRUCE HELD IN SARAJEVO AND THE U. N. TOOK CONTROL OF SOME WEAPONS ALTHOUGH BOSNIAN SERBS OFFICIALLY HAVE REJECTED A NATO ULTIMATUM TO WITHDRAW THEIR HEAVY WEAPONS BY NEXT SUNDAY OR FACE AIR STRIKES THEY HAD TURNED OVER TWENTY SIX HEAVY GUNS TO U. N. FORCES BY YESTERDAY AND GOVERNMENT TROOPS SURRENDERED TEN WEAPONS IN ADDITION MOST SERB GUNS HAVE REMAINED SILENT SINCE LAST THURSDAY ONE ARTILLERY ROUND WAS FIRED YESTERDAY IN THE BOSNIAN CAPITAL WITH NO INJURIES REPORTED DEPENDENTS OF U. S. DIPLOMATS WERE PULLED OUT OF BELGRADE AS A PRECAUTION AGAINST POSSIBLE SERB REPRISALS IN THE EVENT OF WESTERN AIR STRIKES THE WHITE HOUSE IS CONSIDERING CUTTING TWO BILLION DOLLARS IN BENEFITS FOR ELDERLY IMMIGRANTS TO HELP PAY FOR WELFARE REFORM OFFICIALS SAID WHILE CUTTING OFF SUPPLEMENTAL SECURITY INCOME BENEFITS TO THE PARENTS OF LEGAL ALIENS IS HIGH ON THE ADMINISTRATION'S LIST CUTS ALSO COULD COME IN EMERGENCY HOUSING ASSISTANCE PENTAGON OFFICIALS ARE WEIGHING A PLAN TO SELL A LARGE PART OF THE U. S. MILITARY'S COLD WAR INVENTORY OF HIGH PERFORMANCE WEAPONS TO OTHER COUNTRIES UNDER THE PLAN THE PENTAGON WOULD SELL CERTAIN JETS SHIPS AND ARMORED VEHICLES AND USE THE PROCEEDS TO PURCHASE NEWER VERSIONS OF THE SAME WEAPONS SENATOR KAY BAILEY HUTCHISON WAS ACQUITTED ON STATE ETHICS CHARGES JUST AFTER HER TRIAL BEGAN FRIDAY A JUDGE IN FORT WORTH ORDERED THE TEXAS REPUBLICAN ACQUITTED WHEN PROSECUTORS REFUSED TO PRESENT THEIR CASE WITHOUT AN ADVANCE RULING ON WHETHER THEY COULD USE EVIDENCE THAT WAS SEIZED DURING A RAID SOMALI GUNMEN AMBUSHED A U. N. CONVOY IN MOGADISHU AND KILLED AN EGYPTIAN SOLDIER WHILE TWO ITALIAN AID WORKERS WERE KIDNAPPED IN CENTRAL SOMALIA AND WERE HELD FOR RANSOM MEANWHILE WEEKEND BATTLES BETWEEN CLANS IN SOUTHERN SOMALIA KILLED SIXTY PEOPLE AND FORCED MORE THAN FIVE THOUSAND TO FLEE THE PORT OF KISMAYU A CLAN SPOKESMAN SAID ZULU LEADER BUTHELEZI TOLD HIS SUPPORTERS TO PREPARE THEMSELVES FOR QUOTE CASUALTIES AND EVEN DEATH QUOTE FOLLOWING A DECISION BY HIS INKATHA FREEDOM PARTY TO BOYCOTT SOUTH AFRICA'S FIRST ALL RACE ELECTIONS IN APRIL BUTHELEZI ACCUSED THE RIVAL AFRICAN NATIONAL CONGRESS OF STARTING A CAMPAIGN OF ETHNIC CLEANSING AGAINST HIS PEOPLE THIEVES IN OSLO ESCAPED WITH ONE OF THE WORLD'S MOST FAMOUS PAINTINGS THE SCREAM BY EDVARD MUNCH AFTER USING A LADDER TO CLIMB THROUGH A WINDOW OF THE NATIONAL ART MUSEUM TWO MEN FILMED BY SURVEILLANCE CAMERAS ENTERED THE MUSEUM EARLY SATURDAY AND GRABBED THE ONE THOUSAND EIGHT HUNDRED NINETY THREE PAINTING THE THEFT TOOK LESS THAN A MINUTE SKATER TONYA HARDING WILL BE ALLOWED TO COMPETE IN THE OLYMPICS UNDER AN ACCORD REACHED SATURDAY THE U. S. OLYMPIC COMMITTEE HAS CANCELED A HEARING TO CONSIDER WHETHER TO LET HARDING SKATE AND HER SUIT AGAINST THE PANEL HAS BEEN DISMISSED HARDING FACES ALLEGATIONS THAT SHE WAS INVOLVED IN AN ATTACK ON RIVAL NANCY KERRIGAN A CONTRABAND FUEL SHIPMENT EXPLODED IN PORT AU PRINCE DESTROYING THE HAITIAN CAPITAL'S MAIN CENTER FOR ILLEGALLY IMPORTED GASOLINE THE FIRE DEMOLISHED UP TO A DOZEN HOMES AND BUSINESSES BUT NO CASUALTIES WERE REPORTED DIPLOMATS SAID THERE HAS BEEN A RECENT INCREASE IN FUEL SMUGGLING FROM THE DOMINICAN REPUBLIC PALESTINIAN ASSAILANTS FIRED AT A CAR CARRYING ISRAELI SECURITY AGENTS IN THE OCCUPIED WEST BANK KILLING ONE PERSON AND INJURING TWO AUTHORITIES SAID ISRAELI ARMY OFFICIALS IMMEDIATELY CLAMPED A CURFEW ON THE VILLAGES OF BEITUNIYA AND RAMALLAH AND CUT OFF ELECTRICAL POWER IN A NEARBY REFUGEE CAMP EL AMARI MEXICAN PEASANT NEGOTIATORS HAVE BEGUN LEAVING THEIR REMOTE JUNGLE HIDE OUTS TO ATTEND PEACE TALKS AIMED AT ENDING A FORTY FOUR DAY OLD UPRISING IN THE SOUTHERN STATE OF CHIAPAS A GOVERNMENT PEACE ENVOY SAID THE TALKS WHICH ORIGINALLY WERE TO HAVE STARTED A WEEK AGO HAVE BEEN DELAYED BY LOGISTICAL PROBLEMS AND SECURITY CONCERNS THOUSANDS OF LIBERIANS HAVE FLED FROM THEIR VILLAGES AND CONVERGED ON A SEAPORT BUCHANAN IN AN ATTEMPT TO ESCAPE KILLINGS AND LOOTING BY RIVAL INSURGENT GROUPS IN THE WEST AFRICAN COUNTRY CLASHES HAVE INTENSIFIED OVER THE PAST FEW WEEKS BETWEEN CHARLES TAYLOR'S GUERRILLA MOVEMENT AND A REBEL SPLINTER GROUP AMOCO CORPORATION SAID A REORGANIZATION OF ITS AMOCO OIL COMPANY MARKETING GROUP WILL RESULT IN THE ELIMINATION OF AS MANY AS SIX HUNDRED JOBS THE CHICAGO OIL COMPANY SAID THE MOVE IS DESIGNED TO IMPROVE CUSTOMER SERVICE AND TO CUT CERTAIN COSTS AMOCO OIL THE COMPANY'S REFINING MARKETING AND TRANSPORTATION SUBSIDIARY HAS SIX THOUSAND EMPLOYEES THE REORGANIZATION COULD REMOVE SIX PERCENT TO TEN PERCENT OF THOSE WORKERS AN AMOCO SPOKESMAN SAID QUOTE A MAJOR BENEFIT OF THE ORGANIZATION ALIGNMENT WILL BE FOCUSED BETTER DEFINED JOB RESPONSIBILITIES QUOTE SAID ROBERT J. RAUSCHER AMOCO OIL'S VICE PRESIDENT FOR MARKETING AS PART OF THE REORGANIZATION AMOCO WILL SHIFT TO A BRAND MANAGEMENT APPROACH SIMILAR TO THAT OF LARGE CONSUMER PRODUCT COMPANIES BUT RARE FOR OIL COMPANIES MARTIN AMIS HAS FINALLY REACHED MIDDLE AGE IN THE PAST HE HAS BEEN NOTABLE FOR HIS BRASHNESS HIS SCORN AND HIS ABUNDANT VERBAL GIFTS WHICH OFTEN SERVE ONLY TO CONGEST HIS VIGOROUS PROSE MR. AMIS'S NOVELS SUCH AS QUOTE THE RACHEL PAPERS QUOTE QUOTE SUCCESS QUOTE AND QUOTE OTHER PEOPLE QUOTE HAVE NOT BEEN TO EVERYONE'S TASTE THOUGH HE HAS LONG BEEN CONSIDERED ONE OF ENGLAND'S BEST YOUNG WRITERS THE KEY WORD IS YOUNG THE BOOKS UNTIL THE RECENT LONDON FIELDS WERE BRILLIANT BUT IMMATURE NOW AT FORTY FOUR MR. AMIS MAKES HIS BID FOR ADULTHOOD WITH A COLLECTION OF ESSAYS VISITING MRS. NABOKOV AND OTHER EXCURSIONS CROWN SLASH HARMONY TWO HUNDRED SEVENTY FOUR PAGES TWENTY DOLLARS THE PIECES WERE WRITTEN OVER A PERIOD OF SOME TWENTY YEARS AND PLACE MR. AMIS FIRMLY AT THE MIDLIFE POINT A NOSTALGIC ESSAY ON JOHN LENNON PROCLAIMS HIM AN UNREGENERATE NINETEEN SIXTIES KID WHILE A COOLER ONE ON A RECENT ROLLING STONES CONCERT REVEALS THE INCIPIENT OLD FOGEY IN THE HIGH TRADITION OF ALL THE BEST POP CONCERTS HE WRITES YOU WERE TREATED AS IF YOU HAD COME TO SATE SOME VILE ADDICTION RATHER THAN SIMPLY TO EXCHANGE CASH FOR ENTERTAINMENT THE COLLECTION AS A WHOLE IS AN UNEVEN ASSORTMENT INCLUDING SOME REALLY EXCELLENT LITERARY INTERVIEWS ANTHONY BURGESS V. S. PRITCHETT CRITICISM PHILIP LARKIN MADONNA AND INVESTIGATIVE WORK ON INTERNATIONAL CHESS FOR EXAMPLE AND HIGH TECH MOVIEMAKING AS WELL AS A FEW PIECES OF FRIPPERY FOR HIGH PAYING MAGAZINES SUCH AS ESQUIRE MR. AMIS WOULD HAVE DONE WELL TO OMIT THIS LAST CATEGORY SUCH FILLER ALONG WITH A FEW PEDESTRIAN EFFORTS SUCH AS HIS INTERVIEW WITH GRAHAM GREENE WHERE GREENE TELLS AMIS ALL TOO TRULY AS YOU SEE I'VE GOT NOTHING NEW TO SAY CHEAPEN WHAT COULD BE A MORE WONDERFUL SLIMMER COLLECTION FOR IF MR. AMIS'S MIND IS NOT EXTRAORDINARY IT IS EXCELLENT AND HE DISTINGUISHES HIMSELF MOST IN HIS APPRECIATION OF OTHER WRITERS THE LITERARY INTERVIEW SAYS MR. AMIS IS DYING IT WAS WITH DREAD SLASH DETACHMENT SLASH HIGH HOPES THAT I APPROACHED X'S TOWNHOUSE SLASH OFFICE SLASH POTTING SHED THE DOOR OPENED HE IS FATTER SLASH SMALLER SLASH TALLER SLASH BALDER THAN I EXPECTED QUOTE FORTUNATELY MR. AMIS HIMSELF BREATHES NEW LIFE INTO THE CONVENTION AND WHEN DEALING WITH WRITERS FOR WHOM HE FEELS REAL EMPATHY SUCH AS JOHN UPDIKE AND BURGESS HE IS AT HIS BEST EVEN ON AN AVERAGE DAY HOWEVER HE HAS A RATHER UNFAIR ADVANTAGE OVER OTHER INTERVIEWERS IN THAT AS KINGSLEY AMIS'S SON HE GREW UP AROUND MANY OF THE WRITERS HE MAKES HIS SUBJECTS LARKIN AND J. G. BALLARD HE KNEW INTIMATELY WHILE MR. UPDIKE BURGESS AND JOHN BRAINE WERE FRIENDLY ACQUAINTANCES HE THEREFORE HAS MORE ACCESS TO THE INTIMATE UNGUARDED MOMENT THE EASY CONFIDENCE BURGESS FOR INSTANCE GOSSIPS AND DRINKS WITH HIM AND MR. BALLARD EMPIRE OF THE SUN LETS DOWN HIS GUARD IT'S VERY DIFFICULT TO REMYTHOLOGISE ONE'S LIFE YOU NEED A NEW SET OF DREAMS LANDSCAPES FORESTS AND WHAT HAPPENS I JUST SIT WITH A WHISKEY AND SODA WATCHING THE ROCKFORD FILES PERHAPS BEST AS AN INTERVIEWER MR. AMIS IS ALSO GOOD WHEN WRESTLING WITH THE BIZARRE PHENOMENA OF POPULAR CULTURE A REVIEW OF MADONNA'S SEX FOR WHICH TIME WARNER FLEW HIM BY CONCORDE TO NEW YORK TO EXAMINE THE TOP SECRET GALLEYS SUMS UP THE TOME BY SAYING THAT IT COULD HAVE BEEN ASSEMBLED BY A CORPORATE COMPUTER PORNOGRAPHY RELIGION MULTI ETHNICITY TRANSSEXUALITY KITSCH CAMP WORLDLY POWER SELF PARODY AND SELF INVENTION ANOTHER PUBLICITY MACHINE ISAAC ASIMOV IS BRUTALLY DISMISSED WITH A FEW BOMBASTIC EXAMPLES OF HIS INEXHAUSTIBLE ALL CONQUERING SELF LOVE HE TRIES TO TURN HIS AVERAGE COLLECTION OF SHOWBIZ MEMOIRS INTO NABOKOV'S SPEAK MEMORY MR. AMIS LAUGHS WHILE IN HIS OCCASIONAL PIECES MR. AMIS TENDS TO BE A LITTLE SLICK QUOTE VISITING MRS. NABOKOV QUOTE CONTAINS A FEW FULLER BODIED ESSAYS THAT SHOW THAT THE AUTHOR HAS INDEED REACHED MATURITY CHESS KASPAROV V. KARPOV EXPLORES THE DARK AND DUPLICITOUS WORLD OF TOP LEVEL CHESS AND IS FASCINATING ANOTHER WINNER IS ROBOCOP THE SECOND A HALF ADMIRING HALF DERISIVE ACCOUNT OF MR. AMIS'S VISIT TO THE FILM'S SET IN HOUSTON HERE HE EVINCES AN ANTHROPOLOGICAL FLAIR FOR CATCHING THE POSES AND JARGON OF A SELF CONTAINED COMMUNITY ON THE JOB MOVIEMEN HE SAYS HAVE AN AIR OF EXALTED EXHAUSTION OF PRIESTLY FATIGUE AND HE SMILES AT HOLLYWOOD'S USE OF THE WORD DIGNITY FOR THE PERIOD OF COMMERCIAL SUCCESS THAT THE ROLE OF ROBOCOP HAS PROVIDED FOR ACTOR PETER WELLER IF THE LESSER ARTICLES IN THIS BOOK WATFORD IN CHINA CANNES SNOOKER WITH JULIAN BARNES POKER NIGHT AND OTHERS ARE UNWORTHY OF THE BETTER ONES WHICH INCLUDE A WARY MEASURED INTERVIEW WITH ROMAN POLANSKI AND AN ARTICLE ON THE NUCLEAR MAVENS OF WASHINGTON THAT IS NOT TOO IMPORTANT WHAT IS IMPORTANT IS THAT THE COLLECTION AS A WHOLE ESTABLISHES MARTIN AMIS NOT ONLY AS A FLASHY STYLIST BUT AS A PENETRATING CRITIC MORE SURPRISINGLY IT ESTABLISHES HIM AS A NEWLY ARRIVED MEMBER OF THE OLDER GENERATION HE IS NO LONGER A QUOTE YOUNG QUOTE WRITER AND HIS WORK IS THE BETTER FOR IT MS. ALLEN IS A FREE LANCE WRITER IN HUDSON N. Y. ADDING TO A RECENT STRING OF EMBARRASSING QUALITY GLITCHES CHRYSLER CORPORATION WILL ANNOUNCE TODAY A RECALL OF ITS NINETEEN NINETY FOUR L. H. AND L. H. S. SEDANS TO REPAIR FAULTY ELECTRICAL WIRES COMPANY EMPLOYEES WORKING WITH THE PRODUCT SAID THE RECALL COMES ONE WEEK AFTER CHRYSLER ANNOUNCED THAT IT IS RECALLING ALL OF ITS FIFTEEN THOUSAND NEON CARS BUILT SO FAR BUT IT IS THE FIFTH CHRYSLER RECALL IN THE LAST FEW WEEKS THE STRING OF RECALLS COULD UNDERMINE CHRYSLER'S CLAIM THAT IT IS CLOSING THE GAP BETWEEN THE QUALITY OF ITS PRODUCTS AND THAT OF THE BEST JAPANESE AUTO MAKERS THE LATEST RECALL IS TO CORRECT A FLAW IN A NETWORK OF ELECTRICAL WIRES CALLED A WIRING HARNESS THAT COULD SHORT CIRCUIT AND AFFECT THE AUTOMATIC TRANSMISSIONS OF THE DODGE INTREPID CHRYSLER CONCORDE AND CHRYSLER NEW YORKER AND L. H. S. DETAILS OF THE RECALL HADN'T BEEN FULLY WORKED OUT LAST WEEK AND A COMPANY SPOKESMAN SAID CHRYSLER WILL ANNOUNCE THEM TODAY IT IS UNCLEAR WHETHER ALL THE NINETEEN NINETY FOUR L. H.S AND THEIR STRETCHED COUSINS THE L. H. S. AND THE NEW YORKER WILL BE RECALLED ROUGHLY ONE HUNDRED THOUSAND OF THE VEHICLES HAVE BEEN BUILT SO FAR NO ACCIDENTS OR INJURIES HAVE OCCURRED AS A RESULT OF THE PROBLEM WHICH ONLY OCCURS AFTER EXTENDED WEAR ACCORDING TO THE CHRYSLER EMPLOYEES CHRYSLER HAS BEEN EXPERIMENTING WITH DIFFERENT APPROACHES TO RECALLS INCLUDING GIVING CUSTOMERS FREE TRANSPORTATION OR SMALL GIFTS IN SOME CASES AND CHRYSLER OFFICIALS SAID THE COMPANY WILL MAKE SURE L. H. CUSTOMERS AREN'T INCONVENIENCED SOME ANALYSTS SAID RECALLS HANDLED QUICKLY AND PROPERLY USUALLY DON'T HURT A COMPANY QUOTE UNLESS THE COMPANY STONEWALLS OR UNLESS SIXTY MINUTES' HAS SHOTS OF THE CAR GOING UP IN FLAMES THE CONSUMER USUALLY JUST SHRUGS HIS SHOULDERS QUOTE SAID RONALD GLANTZ DEAN WITTER'S AUTO ANALYST HOWEVER THE RECENT STRING OF RECALLS COUPLED WITH THE FACT THAT BY SOME MEASURES CHRYSLER PRODUCTS HAVE THE WORST QUALITY RECORD OF ALL BIG THREE VEHICLES IS A MAJOR EMBARRASSMENT COMPANY INSIDERS SAID CHRYSLER IS AIMING THE NEON AT IMPORT BUYERS WHO HAVEN'T CONSIDERED BUYING A BIG THREE VEHICLE NOW WITH THE L. H. AND L. H. S. RECALL EACH ONE OF CHRYSLER'S VAUNTED RECENT PRODUCTS HAS BEEN RECALLED IN THE PAST FEW WEEKS SOME FOR THE SECOND OR THIRD TIME THE L. H. CARS HAD ALREADY BEEN RECALLED TWICE SINCE THEIR LAUNCH IN NINETEEN NINETY TWO THE C. D. C. APPARENTLY IS NOT ABOVE QUOTE COOKING THE NUMBERS QUOTE TO FURTHER ITS ANTISELF DEFENSE AGENDA QUOTE FIREARMS GAIN ON CAR CRASHES AS TOP KILLER QUOTE JANUARY TWENTY EIGHTH COMPARING ALL GUNSHOT DEATHS FROM HOMICIDE SUICIDE AND ACCIDENTS TO DEATHS ONLY FROM AUTOMOBILE ACCIDENTS IS SCIENTIFICALLY DISHONEST AS CITED IN THE ARTICLE ONLY FOUR PERCENT OF GUN DEATHS WERE UNINTENTIONAL AN OBJECTIVE STUDY WOULD HAVE COMPARED ONLY THESE ACCIDENTAL GUN DEATHS ONE THOUSAND FIVE HUNDRED THIRTY THREE WITH SIMILARLY UNINTENDED AUTO ACCIDENTS FORTY THREE THOUSAND FIVE HUNDRED THIRTY SIX PRODUCING A DRAMATICALLY DIFFERENT RESULT THAN THAT ACHIEVED BY BIASED DATA FURTHER IT IS DECEPTIVE TO EMPHASIZE THE SEVEN JURISDICTIONS FOURTEEN PERCENT WHERE GUN DEATHS EXCEED CAR DEATHS INCLUDING I MIGHT NOTE NEW YORK AND THE DISTRICT OF COLUMBIA THE TWO WITH THE STRICTEST GUN CONTROL MEASURES IN THE NATION INSTEAD OF THE FORTY FOUR STATES EIGHTY SIX PERCENT WHERE THE REVERSE IS TRUE INCLUDING STATES WITH FEW OR NO GUN CONTROL LAWS IN RESPONSE TO HEATHER RICHARDSON'S JANUARY TWENTY FOURTH EDITORIAL PAGE ESSAY QUOTE BOBBITT A VERDICT THAT KILLS JUSTICE QUOTE BOBBITT DIDN'T KILL JUSTICE THE SYSTEM DID THAT LONG AGO MS. RICHARDSON'S COMMENTARY ON THE LORENA BOBBITT VERDICT IS BASED ON THE NAIVE ASSUMPTION THAT IN THIS COUNTRY THERE ARE CIVILIZED PROCEDURES FOR DEALING WITH OUR PROBLEMS WITH ONE ANOTHER SPECIFICALLY REFERRING TO PROCEDURES IN OUR CIVIL JUSTICE SYSTEM THAT IS FAR FROM THE TRUTH IT IS APPARENT THAT THE BOBBITT JURY IN PARTICULAR ALREADY KNEW THAT OUR CIVIL JUSTICE SYSTEM HAS BECOME A FARCE THAT FOOLS THE MASSES INTO THINKING THERE ARE LEGITIMATE ALTERNATIVES TO SELF HELP THE TRUTH IS THAT OUR CIVIL COURT SYSTEM IS IN A STATE OF COLLAPSE THE ONLY THING THAT ONE CAN BE SURE OF AFTER GETTING INVOLVED WITH IT IS THAT HE OR SHE WILL BE BANKRUPTED BY THE TIME THE CASE IS FINISHED AS A PRACTICING ATTORNEY I HAVE HAD THE MISFORTUNE TO BE INVOLVED IN THE CIVIL COURT SYSTEM BOTH PROFESSIONALLY AND PERSONALLY AND I CAN ATTEST THAT THE SYSTEM DOESN'T WORK LYING UNDER OATH IS RAMPANT IN CIVIL CASES AND MANY ATTORNEYS CONSIDER PERJURY TO BE A LEGITIMATE TRIAL TACTIC THEY ENCOURAGE THEIR CLIENTS TO ADOPT AND WHY NOT EVEN FULLY DOCUMENTED CASES OF WILLFUL PERJURY GO UNPUNISHED BY THE JUDGES WHO BY THEIR REFUSAL TO ENSURE THE INTEGRITY OF THE SYSTEM INVITE THE LAWYERS TO CORRUPT IT IN FACT THE ONLY TIME I EVER SAW A JUDGE GET ANGRY ABOUT PERJURY WAS WHEN I COMPLAINED ABOUT IT AND HIS ANGER WAS WITH ME FOR BRINGING IT UP NOT WITH THE WITNESS WHO LIED OR HIS ATTORNEY WHO DELIBERATELY SUBORNED THE FALSE TESTIMONY ORDINARY PEOPLE WHO SEE WHAT GOES ON IN THIS SYSTEM FREQUENTLY COMMENT THAT IF THEY EVER HAD A SERIOUS PROBLEM THEY WOULD SEEK OUT OTHER METHODS TO TAKE CARE OF IT BEFORE EVER GETTING INVOLVED IN THE CIVIL JUSTICE SYSTEM THIS IS ONE ISSUE ON WHICH THE PUBLIC AT LARGE IS A BIG STEP AHEAD OF MS. RICHARDSON AND OTHERS WHO EITHER BLINDLY BELIEVE IN THE SYSTEM OR WHO STILL THINK THE PUBLIC IS FOOLED BY IT THE BOBBITT JURY BELIEVED THAT THIS BATTERED WIFE HAD NO REAL ALTERNATIVE TO SELF HELP WITHIN THE SYSTEM AND THAT'S WHAT ITS VERDICT IS BASED ON NOT MISGUIDED COMPASSION AS MS. RICHARDSON SUGGESTS IF THERE IS ANYONE LEFT WHO IS NOT CONVINCED THAT OUR SYSTEM OF CRIMINAL JUSTICE HAS GONE ONE HUNDRED EIGHTY DEGREES AWRY I. E. WHERE IT IS NOW PREFERABLE IN TERMS OF OUTCOME TO BE THE CRIMINAL RATHER THAN THE VICTIM THEY NEED ONLY READ MS. RICHARDSON'S ARTICLE TWO FORMER PROSECUTORS HAVE TOLD ME THAT THE DEFENSE'S STRATEGY OF A FIRST ADMITTING MRS. BOBBITT'S GUILT IN TERMS OF WHAT LAW WAS BROKEN AND WHO BROKE IT AND B. GOING ON TO JUSTIFY THAT GUILT ON THE BASIS OF THE EXACT BRUTALITY CHARGES FOR WHICH MR. BOBBITT HAD BEEN PREVIOUSLY TRIED AND ACQUITTED WOULD HAVE BEEN THE VERY PROSECUTION ARGUMENTS EACH OF THEM WOULD HAVE INDEPENDENTLY EMPLOYED HAD THEY BEEN PROSECUTING THIS CASE IT SHOULD NOW BE CRYSTAL CLEAR THAT OUR COURTS WILLINGLY ACCEPT EMOTIONAL CIRCUMSTANCES AS SUFFICIENT JUSTIFICATION AND VINDICATION FOR THE COMMISSION OF CRIMES SUCH AS CRUSHING A STRANGER'S HEAD WITH A BRICK SEVERING THE PENIS OF A TORMENTING HUSBAND AND FOR VIOLENTLY KILLING ONE'S OWN PARENTS HOW DO WE AS A SOCIETY JUSTIFY ON THE ONE HAND EXHIBITING DISTRESS OVER RISING LEVELS OF VIOLENT CRIME WHEN ON THE OTHER HAND WE WORK SO HARD TO REWARD IT HUMANA INCORPORATED IS A LARGE MANAGED CARE COMPANY IN FRIDAY'S PAGE ONE ARTICLE ABOUT HOW THE CLINTONS LOST BIG BUSINESS SUPPORT FOR THEIR HEALTH CARE PLAN HUMANA WAS INCORRECTLY IDENTIFIED AS A HOSPITAL COMPANY MUTUAL FUND SCORECARDS FOR U. S. GOVERNMENT BOND FUNDS PRINTED WEDNESDAY AND FOR GINNIE MAE FUNDS PRINTED THURSDAY SHOWED TOTAL RETURN PERFORMANCE SINCE DECEMBER THIRTY FIRST NINETEEN NINETY TWO RATHER THAN DECEMBER THIRTY FIRST NINETEEN NINETY THREE DUE TO A MISCALCULATION BY LIPPER ANALYTICAL SERVICES INCORPORATED THE TOTAL RETURN CALCULATIONS IN BOTH SCORECARDS FOR ONE MONTH TWELVE MONTHS AND FIVE YEARS WERE CORRECT AND ALL CALCULATIONS WERE BASED ON PERIODS ENDING JANUARY THIRTY FIRST NINETEEN NINETY FOUR SEQUENT COMPUTER SYSTEMS INCORPORATED EXPECTS THAT GROSS PROFIT MARGINS WHICH WERE FORTY EIGHT PERCENT IN THE FOURTH QUARTER WILL SLIP BY SINGLE DIGITS THIS YEAR AN ARTICLE FRIDAY SAID THE MARGINS WOULD SLIP QUOTE IN QUOTE SINGLE DIGITS BUT ONE ANALYST SAYS THE STOCKS OF ALARM COMPANIES WHILE RISKY ARE WORTH CONSIDERING THEY STAND TO BENEFIT FROM BOTH HIGH TECH INNOVATIONS AND UNFORTUNATELY PERSISTENT CRIME QUOTE POLICE FORCES EVERYWHERE ARE BEING STRAPPED QUOTE SAYS GEORGE FRAISE OF SMITH BARNEY SHEARSON IN NEW YORK THE PRIVATE SECTOR WILL BE INCREASINGLY RELIED UPON FOR SECURITY OR AT LEAST THE PERCEPTION OF SECURITY MR. FRAISE IS A THIRTY YEAR OLD ELECTRONIC EQUIPMENT ANALYST WHO USUALLY FOLLOWS SUCH GIANTS AS GENERAL ELECTRIC AND WESTINGHOUSE ELECTRIC BUT HE RECENTLY PUBLISHED A SPECIAL REPORT ON ELECTRONIC SECURITY THAT FOCUSES ON FOUR SMALL RELATIVELY NEGLECTED NEW YORK STOCK EXCHANGE ISSUES FOR WHICH HE SEES POTENTIAL HE ISSUED A BUY RECOMMENDATION ON ONLY ONE CHECKPOINT SYSTEMS DESPITE A SIXTY FOUR PERCENT DROP IN ANNUAL EARNINGS THAT THE NEW JERSEY COMPANY REPORTED LAST WEEK CHECKPOINT'S EARNINGS HAVE BEEN DEPRESSED BY EXPANSION COSTS BUT IT AND SENSORMATIC ELECTRONICS ARE LEADERS IN THE GROWING AREA OF ELECTRONIC ARTICLE SURVEILLANCE ELECTRONIC TAGS ATTACHED TO CLOTHES VIDEOCASSETTES AND OTHER PRODUCTS TO TRIP UP SHOPLIFTERS EVER STEAL A HOTEL TOWEL ONE DAY MOST HOTELS COULD HAVE ALARM TAGS ON THE TOWELS TO NAB YOU SAYS MR. FRAISE SENSORMATIC AND CHECKPOINT HE ADDS ARE ALSO POSITIONED TO BENEFIT FROM SOURCE TAGGING OR PUTTING TAGS IN PRODUCTS LIKE COMPACT DISKS DURING MANUFACTURING RETAIL THEFT IS A THIRTY BILLION DOLLAR A YEAR PROBLEM EMPLOYEE THEFT IS A TWENTY BILLION DOLLAR A YEAR PROBLEM SAYS MR. FRAISE WHO CAN TICK OFF JUST ABOUT ANY UGLY CRIME STATISTIC YOU CARE TO KNOW QUOTE HOUSEHOLD BURGLARY REPRESENTS FIVE BILLION DOLLARS IN LOSSES BUT THE FEAR OF CRIME IS EVEN GREATER QUOTE THAN THAT NUMBER SUGGESTS MR. FRAISE SAYS CHECKPOINT IS A SPECULATIVE STOCK ADDING THIS IS NOT FOR GRANDPA TO RETIRE ON BUT HE IS BETTING THE STOCK WILL REBOUND FROM LAST YEAR'S THIRTY FOUR PERCENT PLUNGE HIS TARGET FOR THE STOCK WHICH CLOSED FRIDAY AT THIRTEEN AND THREE EIGHTHS IS SEVENTEEN OVER THE NEXT NINE TO TWELVE MONTHS CHECKPOINT OFFICIALS WEREN'T AVAILABLE TO COMMENT FRIDAY DUE TO THE NORTHEAST'S SNOWSTORM BUT MR. FRAISE EXPECTS THE COMPANY TO EARN AT LEAST FIFTY ONE CENTS A SHARE THIS YEAR A BIG IMPROVEMENT OVER SIXTEEN CENTS LAST YEAR POOR EARNINGS HAVE SOURED MANY INVESTORS ON THE STOCK AND HELPED DRIVE DOWN ITS PRICE BUT MR. FRAISE SAYS INVESTORS ARE OVERLOOKING THE BEEFED UP PRODUCT LINES AND SALES FORCE THAT CHECKPOINT HAS BUILT MR. FRAISE SAYS SENSORMATIC SHARES ARE LESS OF A RISK BUT HE CAN MUSTER ONLY A NEUTRAL RATING JUDGING THEM TOO PRICEY AT FRIDAY'S FINISH OF THIRTY SIX AND FIVE EIGHTHS IF IT WAS AT TWENTY EIGHT IT'D BE A SCREAMING BUY HE SAYS THE SAME NEUTRAL RATING APPLIES TO TWO ALARM MONITORING STOCKS THAT MR. FRAISE IS OPTIMISTIC ABOUT A. D. T. AND AUTOMATED SECURITY HOLDINGS BOTH A. D. T. AND AUTOMATED SECURITY COULD BENEFIT FROM AN EXPECTED CONSOLIDATION AMONG ALARM COMPANIES MANY SMALLER ONES HAVE GONE OUT OF BUSINESS BECAUSE THEY COULDN'T KEEP UP WITH THE TECHNOLOGY PARTICULARLY FOR VERIFICATION SYSTEMS THAT CUT DOWN ON FALSE ALARMS FOR EXAMPLE AUTHORITIES CAN NOW LOOK THROUGH A TINY CAMERA ON A MICROCHIP TO DETERMINE WHETHER A BURGLAR TRIPPED AN ALARM OR JUST A CAT IF THAT KIND OF TECHNOLOGY SOUNDS EXCITING IT'S WORTH MENTIONING AGAIN THAT INVESTORS HAVE BEEN BEATEN IN THE PAST BY ELECTRONIC SECURITY SHARES THIS IS NOT A GROUP FOR THE FAINT OF HEART SAYS MR. FRAISE QUOTE THESE STOCKS ARE HIGHLY VOLATILE AND PRONE TO EARNINGS DISAPPOINTMENTS QUOTE BUT WHAT OTHER INDUSTRY HAS SUCH A STEADY SOURCE OF BUSINESS MAGELLAN GOING SHORT IT COULD HAPPEN IF SHAREHOLDERS APPROVE THE THIRTY FOUR BILLION DOLLAR FIDELITY MAGELLAN FUND THE NATION'S BIGGEST MUTUAL FUND IS SEEKING SHAREHOLDER CONSENT FOR SEVERAL PROPOSALS MOST ARE TECHNICAL BUT ONE IS EYE CATCHING IF APPROVED MAGELLAN COULD BE ALLOWED TO SELL STOCKS SHORT OR MAKE BETS THAT THEY WILL DECLINE SOME STATE REGULATIONS RESTRICT SHORT SELLING BY MUTUAL FUNDS BUT IF THOSE RULES ARE EASED IT WOULD BE INTERESTING TO SEE THE IMPACT THAT MIGHTY MAGELLAN COULD HAVE IN SHOOTING DOWN HIGH FLYING STOCKS FIDELITY SAYS THE SHORT SALE PROPOSAL IS ONE OF SEVERAL RULE REVISIONS IT HOPES TO MAKE FOR ALL ITS FUNDS EVERYONE KNOWS DEGAS HIS BALLERINAS JOCKEYS WOMEN AT THEIR TOILETTE TAUT PSYCHOLOGICAL PORTRAITS OF FRIENDS FAMILY AND LOUCHE CAFE SOCIETY WHEN WE THINK OF HIS WORK WE THINK OF AN INHABITED WORLD A WORLD OF POPULATED INTERIORS UNLIKE THE OTHER IMPRESSIONISTS EDGAR DEGAS ONE THOUSAND EIGHT HUNDRED THIRTY FOUR TO NINETEEN SEVENTEEN WAS FIRST OF ALL A STUDIO PAINTER HE RARELY WORKED OUTDOORS AND HIS FORTE WAS THE PORTRAIT THIS PICTURE OF DEGAS IS NOT INACCURATE BUT IT IS INCOMPLETE JUST HOW INCOMPLETE IS SHOWN BY THE REMARKABLE EXHIBITION OF DEGAS'S LANDSCAPES ON VIEW HERE AT THE METROPOLITAN MUSEUM OF ART THROUGH APRIL THIRD CULLED FROM SEVERAL PUBLIC AND PRIVATE COLLECTIONS THESE SEVENTY FIVE PAINTINGS DRAWINGS AND MONOTYPES MARK THE FIRST EXHIBITION IN A CENTURY TO BE DEVOTED TO THIS LITTLE KNOWN SIDE OF DEGAS'S WORK FOR MOST PEOPLE THE SHOW WILL BE A REVELATION THERE WERE A FEW EXAMPLES OF DEGAS'S LANDSCAPES IN THE HUGE RETROSPECTIVE THAT MADE THE ROUNDS IN NINETEEN EIGHTY EIGHT BUT PLACED AMONG THE FOUR HUNDRED ODD OTHER WORKS IN THAT EXHIBITION THEY SEEMED MORE LIKE BAGATELLES OR AFTERTHOUGHTS THAN FULLY REALIZED WORKS OF ART IN THE PRESENT CONTEXT WE CAN SEE THAT LANDSCAPES PLAYED AN IMPORTANT IF SPORADIC ROLE IN DEGAS'S CAREER FROM HIS APPRENTICE DAYS IN THE ONE THOUSAND EIGHT HUNDRED FIFTIES THROUGH THE MATURE YEARS OF THE ONE THOUSAND EIGHT HUNDRED NINETIES THEY ARE LITTLE KNOWN TODAY PRIMARILY BECAUSE THEY ARE NOT THE SORT OF THING WE HAVE COME TO ASSOCIATE WITH THE NAME QUOTE DEGAS QUOTE NOT THAT DEGAS EVER THOUGHT OF HIMSELF AS A LANDSCAPE PAINTER IN ONE THOUSAND EIGHT HUNDRED FIFTY EIGHT HE WENT SO FAR AS TO CONFESS THAT BOREDOM OVERCOMES ME WHEN I AM CONTEMPLATING NATURE YET PERHAPS BECAUSE HE CONSIDERED HIMSELF PRIMARILY A FIGURATIVE PAINTER HIS ARTISTIC HERO WAS THE SEVERE CLASSICIZING INGRES DEGAS FELT MORE FREE TO EXPERIMENT WHEN HE TURNED TO LANDSCAPE WHATEVER THE REASON THIS EXHIBITION SHOWS THAT LANDSCAPES ESPECIALLY THE COLORED MONOTYPES FROM THE ONE THOUSAND EIGHT HUNDRED NINETIES ARE AMONG THE MOST AESTHETICALLY AND TECHNICALLY ADVENTURESOME WORKS IN DEGAS'S OEUVRE THE EXHIBITION OPENS WITH A HANDFUL OF PICTURES THAT DEGAS MADE WHEN ON AN EXTENDED GRAND TOUR OF ITALY FROM ONE THOUSAND EIGHT HUNDRED FIFTY SIX THROUGH ONE THOUSAND EIGHT HUNDRED FIFTY NINE THE BEST OF THESE WORKS INCLUDING ITALIAN LANDSCAPE SEEN THROUGH AN ARCH ONE THOUSAND EIGHT HUNDRED FIFTY SIX ARE HIGHLY ACCOMPLISHED EXERCISES DONE IN THINNED OIL ON PAPER ONE IS IMPRESSED ESPECIALLY WITH DEGAS'S EASY MASTERY OF THE SUN BAKED NEAPOLITAN COLORS THE DIFFERENCE IN MOOD AND HANDLING FROM THE EARLY PORTRAITS THE SELF PORTRAIT OF ONE THOUSAND EIGHT HUNDRED FIFTY FIVE FOR EXAMPLE OR HIS EARLY MASTERPIECE PORTRAIT OF THE BELLELLI FAMILY BEGUN IN ONE THOUSAND EIGHT HUNDRED FIFTY EIGHT COULD NOT BE MORE STRIKING IN THEIR RELAXED PAINTERLINESS AND WARM PALETTE THESE PICTURES ARE WORLD'S AWAY FROM THE ASTRINGENT EXAMPLE OF INGRES THAT DEGAS OTHERWISE SOUGHT TO EMULATE IT'S DIFFICULT TO BELIEVE THAT THE WORKS WERE PRODUCED BY THE SAME ARTIST THE EXHIBITION CONTINUES WITH SOME PENCIL DRAWINGS EQUESTRIAN SCENES AND A FETCHING TRANSLUCENT CEZANNE ESQUE WATERCOLOR DONE IN THE ONE THOUSAND EIGHT HUNDRED SIXTIES AFTER DEGAS RETURNED TO FRANCE BUT THE MOST MEMORABLE WORK BY FAR FROM THESE EARLY YEARS IS A SUITE OF PASTELS THAT DEGAS DID WHEN HE VISITED THE CHANNEL COAST ON HOLIDAY IN THE SUMMER OF ONE THOUSAND EIGHT HUNDRED SIXTY NINE AS RICHARD KENDALL NOTES IN HIS EXCELLENT CATALOG FOR THE SHOW THESE PICTURES PRESENT A WORLD WITHOUT ANECDOTE CONSISTING OF HORIZONTAL BANDS OF SCUMBLED BROWNS AND MISTY BLUE GRAYS THESE SMALL SCALE WORKS ARE NOT JUST DIFFERENT FROM DEGAS'S FIGURE PAINTINGS THEY ARE THE ANTITHESIS OF THEM ONE CAN PERHAPS CITE LATE TURNER OR THE ROMANTIC LANDSCAPES OF CASPAR DAVID FRIEDRICH AS A PRECEDENT IF NOT EXACTLY AN INSPIRATION FOR THESE WORKS DEGAS HIMSELF SPOKE OF THE MYSTERIOUS MINGLING OF LAND AND WATER BUT THERE IS SOMETHING NOTABLY UN ROMANTIC IF NOT INDEED ANTI ROMANTIC ABOUT HIS CURIOUSLY DEPOPULATED AND ASCETIC PASTELS AS MR. KENDALL OBSERVES DEGAS'S SEASCAPES ARE QUOTE CONSPICUOUSLY LACKING IN GILDED SUNSETS AND MEANINGFULLY ISOLATED BARQUES HIS SKIES ARE GENERALLY BLANK OR UNTROUBLED AND SUCH BOATS AND FIGURES AS APPEAR IN HIS COMPOSITIONS SEEM HAPHAZARD RATHER THAN POIGNANT IF THERE IS A PRESENCE IN THESE WORKS IT IS THE BROODING PRESENCE OF ABSENCE AND OF ABSTRACTNESS WE ALL KNEW THAT DEGAS WAS WITHOUT EQUAL AMONG THE IMPRESSIONISTS AS A PAINTER OF FIGURES THE CHIEF REVELATION OF THIS EXHIBITION IS HOW ACCOMPLISHED HE WAS AS AN ABSTRACT PAINTER THIS IS HINTED AT IN THE PASTEL SEASCAPES IT BOWLS YOU OVER WHEN YOU SEE THE COLORED MONOTYPES FROM THE ONE THOUSAND EIGHT HUNDRED NINETIES DEGAS HAD STARTED PRODUCING SMALL BLACK AND WHITE MONOTYPES DRAWINGS MADE IN OILY INK AND THEN PRINTED AS HE PREFERRED TO DESCRIBE THEM IN THE LATE ONE THOUSAND EIGHT HUNDRED SEVENTIES IT WAS A SIMPLE AND RAPID PROCESS AND DEGAS SQUEEZED A NUMBER OF ARRESTING IMAGES FROM THE MEDIUM BUT IT WAS NOT UNTIL OCTOBER OF ONE THOUSAND EIGHT HUNDRED NINETY WHEN HE VISITED HIS FRIEND PIERRE GEORGES JEANNIOT IN BURGUNDY THAT HIS EXPERIMENTS REALLY BORE FRUIT TRAVELING BY OPEN CARRIAGE FROM PARIS DEGAS REGISTERED THE LANDSCAPE WHIZZING BY WITHIN AN HOUR OF REACHING JEANNIOT'S HOUSE HE WAS IN HIS FRIEND'S STUDIO DRAWING FURIOUSLY ON METAL PLATES IN A MEMOIR PUBLISHED IN THE NINETEEN THIRTIES JEANNIOT RECALLS THE AFTERNOON WE GRADUALLY SAW EMERGING ON THE SURFACE OF THE METAL A VALLEY A SKY WHITE HOUSES FRUIT TREES WITH BLACK BRANCHES BIRCHES AND OAKS RUTS FILLED WITH WATER FROM A RECENT DOWNPOUR ORANGE COLORED CLOUDS SCUDDING ACROSS A TURBULENT SKY ABOVE THE RED AND GREEN EARTH ALL THESE THINGS AMERGED WITHOUT APPARENT EFFORT AS IF HE HAD THE MODEL IN FRONT OF HIM DEGAS PRINTED ONE OR TWO IMPRESSIONS THE SECOND WAS ALWAYS MUCH LIGHTER AND LESS DISTINCT THAN THE FIRST FROM THE INKED PLATE HE THEN FINISHED MOST OF THEM WITH PASTEL ALTOGETHER HE MADE ABOUT FIFTY LANDSCAPES IN THE SUCCEEDING MONTHS SEVERAL WERE EXHIBITED IN ONE THOUSAND EIGHT HUNDRED NINETY TWO AT THE GALERIE DURAND RUEL DEGAS'S FIRST SOLO EXHIBITION IT WAS ONE CRITIC WROTE THE MOST EXTRAORDINARY EVENT OF THE SEASON EVEN TODAY THE WORKS IN THAT EXHIBITION SEEM EXTRAORDINARY DEGAS REFERRED TO THESE MONOTYPES AS QUOTE IMAGINARY LANDSCAPES QUOTE STEPPING INTO THE ROOM WHERE THEY ARE ON VIEW IS LIKE STEPPING FROM THE NINETEENTH CENTURY INTO THE MID TWENTIETH CENTURY ARE THESE NOT EARLY COLOR FIELD ABSTRACTIONS A WOODED LANDSCAPE WAS EXECUTED IN ONE THOUSAND EIGHT HUNDRED NINETY BUT IT COULD BE A TRIAL RUN FOR ROBERT MOTHERWELL'S SPANISH ELEGY SERIES YES SOME OF THESE COLORED MONOTYPES ARE MUDDY AND UNCERTAIN BUT A LARGE HANDFUL ARE HAUNTINGLY BEAUTIFUL ABSTRACTIONS WE OWE MR. KENDALL AND THE ORGANIZERS OF THIS EXHIBITION A LARGE DEBT WE THOUGHT WE KNEW DEGAS BUT WE ONLY KNEW THE HALF OF IT DEGAS LANDSCAPES TRAVELS TO THE MUSEUM OF FINE ARTS IN HOUSTON WHERE IT WILL BE ON VIEW FROM APRIL TWENTY FOURTH TO JULY THIRD UNITED TECHNOLOGIES CORPORATION MAY SELL SOME OF ITS SMALL DEFENSE BUSINESSES IN THE FACE OF A SHRINKING U. S. DEFENSE INDUSTRY CHAIRMAN ROBERT F. DANIELL SAID AT A NEWS CONFERENCE IN NEW YORK HE SAID THE TIMING OF THE SALES QUOTE WILL BE PURELY OPPORTUNISTIC QUOTE THESE BUSINESSES INCLUDE UNITED TECHNOLOGIES'S NORDEN UNIT WHICH MAKES RADARS AND OTHERS THAT MAKE SOLID ROCKETS AND PROPELLANTS FOR THE SPACE SHUTTLE THE HARTFORD CONNECTICUT COMPANY RECENTLY ANNOUNCED PLANS TO SPIN OFF ITS AUTOMOTIVE DIVISION BY ISSUING A SEPARATE CLASS OF STOCK A MOVE THAT WOULD HELP IT RAISE GROSS PROCEEDS OF SEVEN HUNDRED NINETY ONE MILLION DOLLARS TO EIGHT HUNDRED THIRTY MILLION DOLLARS THE COMPANY INTENDS TO USE THE MONEY TO REDUCE DEBT INCREASE ITS DIVIDEND AND EXPAND CORE BUSINESSES MR. DANIELL SAID THE COMPANY'S FINANCIAL POSITION LOOKS RATHER FAVORABLE GOING FORWARD HE SAID THE COMPANY'S FOCUS NOW WOULD SHIFT TO CREATING GROWTH THROUGH EXPANSIONS OF ITS MARKETS ABROAD AND THROUGH ACQUISITIONS ANOTHER EXECUTIVE OF THE COMPANY SAID THE COMPANY'S OTIS UNIT WHICH MAKES ELEVATORS IS A WILLING BUYER LOOKING FOR ACQUISITIONS UNITED TECHNOLOGIES' OTHER BUSINESSES INCLUDE THE PRATT AND WHITNEY JET ENGINE UNIT AND CARRIER CORPORATION A HEATING AND AIR CONDITIONING BUSINESS RAYTHEON COMPANY CITING DEFENSE SPENDING CUTBACKS SAID IT CUT ABOUT FIVE HUNDRED FIFTY JOBS OR ABOUT ONE PERCENT OF ITS WORK FORCE IN ITS MISSILE SYSTEMS AND DEFENSE EQUIPMENT DIVISIONS THE AEROSPACE ELECTRONICS AND DEFENSE CONCERN SAID IT ELIMINATED THE MANUFACTURING ENGINEERING AND MARKETING POSITIONS BECAUSE GOVERNMENT DEFENSE SPENDING CONTINUES TO DECLINE RAYTHEON LEXINGTON MASSACHUSETTS EMPLOYS ABOUT SIXTY THREE THOUSAND PEOPLE WORLD WIDE THE AFFECTED POSITIONS WERE IN MASSACHUSETTS JENNIFER CULVER IS BLIND BUT CAN SENSE WHEN OTHERS' EYES ARE UPON HER QUOTE I FEEL LIKE PEOPLE ARE STARING AT ME QUOTE THE FIFTEEN YEAR OLD SAYS I FEEL LIKE AN OUTCAST BUT NOT IN THIS TOWN HERE IN TALLADEGA VISITING A CROWDED MCDONALD'S JENNIFER ISN'T SELF CONSCIOUS AT ALL FINGERING A BRAILLE MENU PROVIDED BY THE RESTAURANT SHE SHOUTS BIG MAC AND EGG MCMUFFIN TO SEVERAL BLIND FRIENDS HERE EXPLAINS JENNIFER WHO IS PART OF HER SCHOOL'S CHEERLEADING AND TRACK TEAMS THERE ARE SO MANY LIKE ME THAT IT'S NO BIG DEAL BEING BLIND TALLADEGA IN FACT IS ALMOST CUSTOM FITTED TO CITIZENS WITH DISABILITIES TALKING STOPLIGHTS TELL PEDESTRIANS WHEN TO WALK AND WHAT STREET THEY ARE CROSSING THE TOWN'S HOSPITAL AND THE POLICE TAKE EMERGENCY CALLS FROM RESIDENTS WHO CAN'T HEAR OR TALK A FACTORY EMPLOYS MANY WORKERS WHO ARE DEAF BLIND OR BOTH PIZZA DELIVERERS CAN VERIFY AN ORDER LARGE SAUSAGE AND CHEESE IN AMERICAN SIGN LANGUAGE YOU FEEL ODD SAYING DISABLED HERE BECAUSE PEOPLE ARE ABLE TO DO JUST ABOUT ANYTHING SAYS RUBY GREEN A VICE PRESIDENT OF CITIZENS BANK WHICH OFFERS BRAILLE STATEMENTS TO BLIND CUSTOMERS AND EMPLOYS A DEAF WOMAN AS A TELLER AT FIRST GLANCE TALLADEGA SEEMS AN UNLIKELY OASIS FOR THE DISABLED STUCK OUT IN THE RUGGED FARM COUNTRY OF CENTRAL ALABAMA IT IS BEST KNOWN FOR THE NEARBY TALLADEGA SUPERSPEEDWAY AND FOR THE LOCAL FEDERAL CORRECTIONAL INSTITUTION WHOSE INMATES HAVE INCLUDED MANUEL NORIEGA AND JIM BAKKER BUT NEAR THE TOWN SQUARE IS AN ANTEBELLUM SCHOOL FOR THE DEAF WHICH HAS GROWN TO INCLUDE SCHOOLS FOR THE BLIND AND FOR PEOPLE WITH MULTIPLE DISABILITIES THIS CLUSTER OF FACILITIES KNOWN AS THE ALABAMA INSTITUTE FOR DEAF AND BLIND IS UNUSUAL AND ITS LOCAL IMPORTANCE IS MAGNIFIED BY THE MANY STUDENTS WHO SETTLE HERE GIVING THE TOWN OF NINETEEN THOUSAND ABOUT ONE THOUSAND DISABLED CITIZENS HALF OF THEM AT THE INSTITUTE THE INSTITUTE WHICH GRANTS HIGH SCHOOL DIPLOMAS AND PROVIDES VOCATIONAL TRAINING IS ALSO TALLADEGA'S BIGGEST EMPLOYER MANY GRADS WORK AT ITS FACTORY MAKING PAPER PRODUCTS NECKTIES MOPS AND OTHER ITEMS PRIMARILY FOR THE U. S. MILITARY UNDER THE TERMS OF ITS GOVERNMENT CONTRACTS THE FACTORY MUST HAVE SEVENTY FIVE PERCENT OF ITS PRODUCTION DONE BY DISABLED WORKERS THE RESULT IS A STRIKING EXAMPLE OF HOW DISABILITIES CAN BE OVERCOME AND HOW WORKERS CAN HELP ONE ANOTHER OUT ON THE SHOP FLOOR A DEAF MAN RUNS A FAST MOVING MACHINE THAT INKS THE LINES ON LEGAL PADS BESIDE HIM A BLIND MAN CUTS THE PADS WITH A GUILLOTINE EQUIPPED WITH AN ELECTRIC EYE THAT TURNS OFF THE MACHINE IF HIS HANDS MOVE TOO CLOSE TO AN ACTIVE BLADE PRODUCTION MANAGER NORMAN CULVER ALSO IS BLIND QUOTE I CAN WALK THROUGH HERE AND TELL BY THE SOUND OF THE MACHINES IF FOLKS ARE WORKING OR IF THEY'RE TALKING TOO MUCH QUOTE HE SAYS MOST WORKERS REACH THE FACTORY ON A BUS DRIVEN BY A MAN WITH ONE LEG THEY EAT AT A CAFETERIA STAFFED BY THE BLIND THE FACTORY RECEPTIONIST ALSO IS LEGALLY BLIND HER WORKSTATION INCLUDES A TALKING CALCULATOR THAT CALLS OUT NUMBERS AND SCREEN MAGNIFICATION SOFTWARE THAT ENLARGES TEXT ON HER COMPUTER SCREEN TO A SIZE SHE CAN MAKE OUT EUGENE PENNINGTON IS BOTH BLIND AND DEAF BUT HE CAN MAKE A BROOM BY TOUCH HE LOADS ONE END OF THE STICK INTO A ROTATING VICE WRAPS THE OTHER END WITH BROOMCORN THEN SECURES THE CORN WITH WIRE AND TRIMS IT WITH A BLADE IN NEARLY FORTY YEARS AT THE FACTORY HE HAS NEVER INJURED HIMSELF I DON'T TAKE SHORTCUTS HE EXPLAINS COMMUNICATING WITH HIS BLIND MANAGER WITH TACTILE SIGNING FORMING LETTERS AND WORDS IN EACH OTHERS' HANDS LOCAL POLITICIANS VISIT THE FACTORY TO COURT THE DEAF AND BLIND VOTE AND THE TOWN CATERS TO THE DISABLED IN DOZENS OF SMALL WAYS IT HAS REPAVED BUMPY SIDEWALKS AND INSTALLED THE TALKING TRAFFIC SIGNALS WHICH ARE BELIEVED TO BE THE FIRST IN THE U. S. THAT ALSO NAME THE STREET BEING CROSSED CHURCH SERVICES ARE CONDUCTED IN SIGN VIDEO SHOPS HAVE SIGN LANGUAGE TAPES AND MOVIES CAPTIONED FOR THE HEARING IMPAIRED EVEN PRISON INMATES GET IN ON THE ACT TRANSCRIBING TEXTBOOKS INTO BRAILLE FOR USE AT THE INSTITUTE INMATES VOLUNTEER FOR THE WORK WHICH PAYS TWELVE CENTS AN HOUR IT'S BETTER THAN DIGGING A DITCH SAYS INMATE DARRYL SMITH PROOFREADING A BRAILLE TEXT ABOUT GOTHIC ARCHITECTURE AT LEAST YOU'RE DOING SOMETHING USEFUL AND INTELLECTUALLY STIMULATING HIS CO WORKERS ARE HISPANIC PRISONERS WHO REGARD THE WORK AS A WAY TO IMPROVE THEIR ENGLISH NEW TECHNOLOGY ALSO HELPS THE DISABLED WORK ALONGSIDE THE ABLE BODIED IN TALLADEGA AT COLONIAL CHEVROLET BUFORD GILLIAM CAN SELL YOU A CAR WITHOUT OPENING HIS MOUTH DIALING AN OLD CUSTOMER WHO LIKE MR. GILLIAM IS DEAF THE SALESMAN CONNECTS HIS PHONE HANDSET TO A KEYBOARD AND SCREEN THIS IS BUFORD CALLING FROM COLONIAL HE TYPES QUOTE I HEARD YOU WERE CONSIDERING A NEW VAN IS THAT RIGHT THE WORDS APPEAR ON AN IDENTICAL MACHINE AT THE CUSTOMER'S HOME HER ANSWER FLASHES BACK FIRST I'D LIKE TO PAY OFF THE LAST ONE YOU SOLD ME SHE SAYS THIS IS THE SAME DEVICE THE POLICE AND THE TOWN'S ONLY HOSPITAL USE FOR EMERGENCY CALLS MR. GILLIAM WHO READS LIPS ALSO SELLS CARS TO HEARING CUSTOMERS AND HAS MOVED ENOUGH CARS TO WIN HONORS AS COLONIAL'S SALESMAN OF THE MONTH BUFORD UNDERSTANDS WHAT PEOPLE MEAN NOT JUST WHAT THEY SAY SAYS JOEL ALDERMAN COLONIAL'S PRESIDENT HE CAN READ INNER MOTIVES LIKE MANY IN TALLADEGA MR. ALDERMAN HAS LEARNED TO DO SOME SIGNING SO HE CAN COMMUNICATE MORE EASILY WITH HIS EMPLOYEE OVER AT DOMINO'S PIZZA ASSISTANT MANAGER ROBIN PLUNKETT KEEPS NEXT TO THE CASH REGISTER A BOOK CALLED THE JOY OF SIGNING IT HELPS HER TALK WITH DEAF EMPLOYEES AND CUSTOMERS WHILE SOME WORDS SUCH AS CHEESE RUBBING PALMS ARE STANDARD AMERICAN SIGN LANGUAGE OTHERS REQUIRE IMPROVISATION QUOTE I'VE LEARNED A LITTLE BIT OF SIGN AND A LOT OF BODY LANGUAGE QUOTE SHE SAYS DOMINO'S DELIVERYMEN ALSO KNOW SIGN THOUGH THEY CAN GET CONFUSED WHEN THEY DELIVER TO THE INSTITUTE THEY HURRY SO MUCH THAT SOMETIMES THEY CAN'T REMEMBER WHAT PART OF THE SCHOOL THEY'RE AT SAYS LEON JACKSON A BLIND STUDENT SO THEY START SIGNING AT US EVEN THOUGH WE CAN HEAR INTEGRATION INTO EVERYDAY LIFE IS EVEN POSSIBLE FOR THOSE WHO CAN'T HEAR OR SEE LIKE MR. PENNINGTON THE FACTORY WORKER AFTER WORK HE TAKES THE BUS HOME TO A TRAILER PARK WHERE HE IS THE ONLY RESIDENT WITH DISABILITIES INSIDE HIS MOBILE HOME HE SHOWS OFF GADGETS THAT HELP HIM LIVE ALONE WITHOUT SIGHT SOUND OR SPEECH FOR INSTANCE THE VIBRATING ALARM CLOCK BENEATH HIS MATTRESS THAT WAKES HIM FOR WORK MR. PENNINGTON DOES HIS OWN BANKING AND SHOPPING AT THE SUPERMARKET HE KNOWS PRODUCTS AND BRANDS BY FEEL CASHIERS USE THEIR FINGERS TO SCRIBBLE THE TOTAL COST IN MR. PENNINGTON'S PALM HE COUNTS OUT THE EXACT SUM TELLING THE DENOMINATION OF BILLS IN HIS POCKET BY THE WAY HE HAS FOLDED THEM WITH HELP FROM A BANK TELLER NOW FIFTY NINE HE LOOKS FORWARD TO RETIRING SOON A DEAF SISTER WANTS HIM TO COME LIVE WITH HER IN A RURAL AREA NEAR FAYETTE ALABAMA BUT MR. PENNINGTON WONDERS WHETHER IF HE DOES THAT HE WILL BE ABLE TO ENJOY THE INDEPENDENCE HE HAS HERE IN TALLADEGA HE SAYS I AM NOTHING SPECIAL I LIKE THAT RUPERT MURDOCH THE BILLIONAIRE CHAIRMAN OF NEWS CORPORATION HAD A LOT ON HIS MIND HIS FOX TELEVISION NETWORK WAS SECRETLY PREPARING TO BID FOR THE RIGHT TO BROADCAST NATIONAL FOOTBALL LEAGUE GAMES HE WAS CHARTING EXPANSION PLANS FOR BSKYB A LONDON SATELLITE T. V. BUSINESS HE WAS BATTLING THE CHINESE GOVERNMENT OVER STAR T. V. HIS NEW ASIAN SATELLITE NETWORK YET ON A THURSDAY AFTERNOON WORKING THE PHONES AT HIS UNASSUMING OFFICE ON NEWS CORPORATION'S TWENTIETH CENTURY FOX STUDIO LOT MR. MURDOCH'S ATTENTION WAS FOCUSED ON DECIDEDLY SMALLER ISSUES QUOTE I'M NOT SAYING HE DIDN'T TRY VERY HARD HE JUST FROZE EVERY TIME A CAMERA TURNED ON QUOTE HE WAS SAYING TO MICHAEL OVITZ THE HEAD OF CREATIVE ARTISTS AGENCY THE QUESTION IS WHAT'S FAIR PAYING A YEAR'S SALARY FOR SIX WEEKS' WORK IS OUTRAGEOUS NEGOTIATING FAILED TALK SHOW HOST CHEVY CHASE'S SEVERANCE PAY HARDLY SEEMS LIKE AN ISSUE OF GLOBAL URGENCY AND MR. MURDOCH CERTAINLY HAS PLENTY ELSE TO DO AT NEWS CORPORATION A COMPANY WHOSE NEWSPAPERS MAGAZINES BOOKS MOVIES AND TELEVISION PROPERTIES BROUGHT IN SEVEN POINT FIVE BILLION DOLLARS IN REVENUE FOR THE YEAR ENDED JUNE THIRTIETH YET ON THE SAME DAY MR. MURDOCH WOULD ALSO MULL A PROPOSAL FROM TICKETMASTER TO EXCHANGE GUNS FOR SPORTS TICKETS AT THE LOCAL FOX T. V. STATION HE WOULD REVIEW THE NEXT DAY'S LEAD EDITORIAL FOR THE NEW YORK POST THE MONEY LOSING TABLOID THAT HIS COMPANY ALSO OWNS HE WOULD DISCUSS NEW SPORTS PROGRAMMING IN ASIA NOTING THAT BASKETBALL AND SOCCER ARE VERY BIG IN CHINA CALL IT MICROMANAGEMENT ON A GLOBAL SCALE IT IS A STYLE THAT HASN'T ALWAYS WON FANS FOR THE SIXTY TWO YEAR OLD AUSTRALIAN SOME COMPANY INSIDERS RESENT HIS MEDDLING SCORES OF JOURNALISTS HAVE QUIT OVER THE YEARS BECAUSE OF THE WAY HE USES HIS NEWSPAPERS TO PRESS HIS PERSONAL VIEWS OTHERS SAY HIS AUTOCRATIC RULE CAN BE CAPRICIOUS AS HE SOURS SUDDENLY ON PROJECTS HE HAD ONLY RECENTLY CHAMPIONED AND THOUGH HE RELIES ON A FIERCELY LOYAL CADRE OF LIEUTENANTS HE CAN'T SEEM TO TOLERATE A STRONG NUMBER TWO AMONG THE TALENTED EXECUTIVES WHO HAVE LEFT ARE FORMER FOX INCORPORATED CHAIRMAN BARRY DILLER WHO NOW HEADS Q. V. C. NETWORK INCORPORATED AND FORMER FOX STUDIO CHIEF JOE ROTH NOW AN INDEPENDENT PRODUCER THE ATMOSPHERE IS SORT OF LIKE A MONARCHY SAYS GREG NATHANSON A FORMER HEAD OF FOX'S T. V. STATIONS EVERYBODY WORKS FOR THE KING AND NOTHING ELSE MATTERS YET MR. MURDOCH SAYS THIS IS WHAT IT TAKES TO MANAGE ON A GLOBAL SCALE IN AN ERA WHEN THE SUN NEVER SETS ON MANY MULTINATIONAL COMPANIES EXECUTIVES ARE FINDING IT EVER MORE DIFFICULT TO KEEP TRACK OF THEIR FAR FLUNG OPERATIONS MUCH LESS TO MANAGE THEM MR. MURDOCH HAS FASHIONED HIS OWN ANTIDOTE TO GLOBAL SPRAWL HE FOCUSES INTENSELY ON ONE BUSINESS AT A TIME HIS LATEST FASCINATION HAS BEEN THE T. V. BUSINESS IN LOS ANGELES THOUGH HE IS NOW TURNING HIS ATTENTION TO STAR T. V. IN ASIA YET HE DROPS IN ON HIS OTHER HOLDINGS AT A MOMENT'S NOTICE TO TAKE COMMAND OF MINOR EVEN TRIVIAL DECISIONS QUOTE IF YOU'RE GOING TO GET INTO A BUSINESS QUOTE MR. MURDOCH SAYS TAKING A QUICK BREAK BETWEEN PHONE CALLS QUOTE YOU SHOULD GET AS CLOSE TO IT AS POSSIBLE EVEN RUN IT YOURSELF FOR A PERIOD QUOTE AS A FEW DAYS WATCHING MR. MURDOCH IN ACTION MAKE AMPLY CLEAR THE LOGISTICS OF MICROMANAGING A GLOBAL COMPANY CAN BE DAUNTING GRAY HAIRED AND RESTLESS WITH BUSHY EXPRESSIVE EYEBROWS THAT RISE TO PUNCTUATE HIS SENTENCES MR. MURDOCH IS CONSTANTLY ON THE MOVE HE SPENDS ONLY ABOUT HALF OF HIS TIME AT HIS LOS ANGELES BASE HE IS JUST AS LIKELY TO BE FOUND IN ONE OF HIS OTHER THREE OFFICES OR AT ONE OF HIS SIX HOMES OR ON HIS NEW ONE POINT THREE MILLION DOLLARS YACHT MORNING GLORY HE IS HIS OWN WALKING VIRTUAL OFFICE WHEREVER HE IS NEWS CORPORATION IS IN BUSINESS HE EVEN CLINCHED LAST SUMMER'S FIVE HUNDRED TWENTY FIVE MILLION DOLLARS STAR T. V. DEAL WHILE VACATIONING WITH HIS FAMILY ON HIS YACHT IN THE MIDDLE OF THE MEDITERRANEAN IT HELPS THAT HE HAS SIX FULL TIME SECRETARIES SPREAD ACROSS THREE CONTINENTS IN LOS ANGELES ONE MORNING HE AWAKENS AS USUAL AT FIVE THIRTY A. M. FOR A QUICK SWIM AT HIS BEVERLY HILLS HOME THEN HE DRIVES HIMSELF TO THE OFFICE IN HIS FOREST GREEN MERCEDES COUPE HE WON'T EVEN DELEGATE THE DRIVING TO ANYONE ELSE BEFORE ARRIVING AT SEVEN A. M. HE MAKES CALLS ALL ALONG THE WAY PEPPERING EMPLOYEES WITH QUESTIONS BUT IN AN IMPECCABLY POLITE TONE THAT IS HIS TRADEMARK INSIDERS SAY HE RUNS HIS EMPIRE BY PHONE AND CLONE AND EVEN HE ADMITS TO BEING A PHONE FREAK A FEW TIMES A WEEK ANTHEA DISNEY EDITOR OF NEWS CORPORATION'S T. V. GUIDE IN NEW YORK IS ON THE RECEIVING END OF ONE OF HIS CAR PHONE CALLS HE WILL COMMENT ON A DOLLY PARTON COVER OR ASK ABOUT CIRCULATION TRENDS MANAGERS OF OTHER UNITS NEVER KNOW WHEN THEY PICK UP THE PHONE WHETHER THEY WILL HEAR MURDOCH HERE HOW'RE THINGS AT YOUR SHOP THE TACTIC GIVES THE IMPRESSION AT LEAST THAT MR. MURDOCH HAS MASTERED THE TINIEST DETAILS OF NUMEROUS OPERATIONS THE CALLS CAN ALSO THROW DIVISIONS INTO TURMOIL YOU MUST ACCEPT THE FACT THAT YOU WORK FOR SOMEONE WHO IS IN AND OUT OF YOUR BUSINESS SAYS ONE NEWS CORPORATION EXECUTIVE QUOTE OCCASIONALLY HE'S GOING TO DIAL YOU UP AND IT ISN'T ALWAYS ABOUT YOUR PRIORITY FOR THAT DAY OR THAT WEEK QUOTE MANAGERS SAY THEY ARE SOMETIMES PARALYZED IN DECISION MAKING AS THEY WAIT TO HEAR FROM HIM FIRST MR. MURDOCH WILL SPEND ABOUT TWELVE HOURS AT HIS OFFICE BUT HE DOESN'T CONCENTRATE ON ANY ONE ISSUE FOR LONG INSTEAD HE DARTS FROM ONE IDEA TO THE NEXT MAKING CONSTANT SPUR OF THE MOMENT DEVIATIONS FROM PLANNED MEETINGS AND DECISIONS MR. MURDOCH MAKES NO APOLOGIES FOR TAKING ON THE SMALL DETAILS THAT MOST EXECUTIVES LEAVE TO LAWYERS OR UNDERLINGS ASKED WHY HE PERSONALLY HANDLED CHEVY CHASE'S SEVERANCE PAY HE REPLIES ON A MATTER LIKE THAT IT WAS JUST EASIER FOR ME TO GET INVOLVED THAN TO INVOLVE LAWYERS WHO MAKE THINGS NASTY COSTLY AND SLOW C. A. A.'S MR. OVITZ WHO NEGOTIATED ON BEHALF OF MR. CHASE NOTES THAT MR. MURDOCH DOESN'T HESITATE TO GET INVOLVED IN THINGS A CHIEF OPERATING OFFICER WOULD SIGN OFF TO A DEPARTMENT HEAD MR. CHASE'S PAYOFF IS BELIEVED TO BE WELL UNDER TEN MILLION DOLLARS BUT HIS DETAILS ORIENTED STYLE CAN ALSO LEAD TO COSTLY MISTAKES IN A BURST OF WHAT HE ADMITS WAS OVERENTHUSIASM ABOUT FOREIGN T. V. EXPANSION LAST YEAR MR. MURDOCH PERSONALLY DEVOTED WEEKS TO A MINORITY INVESTMENT IN A SPANISH MAGAZINE COMPANY AND T. V. STATION I WASTED A LOT OF TIME GOING OVER THERE AND TRYING TO MAKE IT WORK AND IT JUST WASN'T RIGHT HE SAYS ABOUT SIX MONTHS AGO NEWS CORPORATION PULLED OUT AND TOOK A TEN MILLION DOLLAR LOSS MR. MURDOCH HAS BEEN CRITICIZED ON SOME OTHER DEALS FOR PAYING TOO MUCH HE BUILT HIS EMPIRE WITH EIGHT BILLION DOLLARS OF DEBT BUT AGAINST THE PLEADINGS OF HIS ADVISERS MUCH OF IT WAS SHORT TERM LEAVING HIM AT THE MERCY OF HIS BANKERS AND SOME SAY NEARLY DRIVING THE COMPANY INTO BANKRUPTCY IN THE LATE NINETEEN EIGHTIES NEWS CORPORATION IS PROFITABLE AGAIN NOW AND ANALYSTS CURRENTLY ARE HIGH ON THE COMPANY BUT THE JURY IS STILL OUT ON SOME OF ITS RECENT MOVES THE FOX NETWORK HAS HAD FLAT RATINGS RECENTLY AND HAS JUST TAKEN A HUGE GAMBLE WITH ITS ONE POINT FIVE SIX BILLION DOLLARS FOOTBALL FORAY THE FOX STUDIO HAS BEEN MIRED IN A DRY SPELL THAT ONLY RECENTLY HAS BEEN REVERSED AND THEN ONLY BY A SINGLE HIT MRS. DOUBTFIRE CRITICS SAY MR. MURDOCH PAID TOO MUCH FOR STAR T. V. A MULTICHANNEL SERVICE THAT INCLUDES NEWS SPORTS AND M. T. V. AND THAT IS FACING COMPETITION AND GOVERNMENT INTERFERENCE QUOTE I LIKE TO BE ABLE TO MOVE FAST QUOTE MR. MURDOCH SAYS SOMETIMES IT LEADS TO MAKING MISTAKES BUT OTHER TIMES IT LEADS TO GETTING AN OPPORTUNITY BEFORE OTHER PEOPLE SEE IT MR. MURDOCH'S MUSINGS ARE INTERRUPTED BY HIS SECRETARY DOROTHY DOT WYNDOE WHO BRINGS HIM A HEAPING PLATE OF RAW CARROTS SHE DOES THIS EVERY MORNING AT ABOUT NINE A. M. TO KEEP MY BLOOD SUGAR EVEN MR. MURDOCH EXPLAINS MATRONLY BRUSQUE AND INTENSELY LOYAL MS. WYNDOE THE MOST SENIOR OF HIS SECRETARIES IS A FORMIDABLE GATEKEEPER SHE BEGAN WORKING FOR MR. MURDOCH THIRTY ONE YEARS AGO AS A TYPIST FOR THE SYDNEY DAILY MIRROR IN AUSTRALIA SHE FOLLOWED HIM WHEN HE MOVED HIS BASE OF OPERATIONS TO LONDON THEN NEW YORK THEN LOS ANGELES NOW HE IS LIVING PART TIME IN HONG KONG TO KEEP AN EYE ON STAR T. V. AND SHE SAYS SHE WOULD READILY FOLLOW HIM THERE TOO MS. WYNDOE MARSHALS THE SKILLS OF AN ARMY TACTICIAN TO KEEP MR. MURDOCH'S SCHEDULE UNDER CONTROL IT IS A DAUNTING JOB EVEN WHEN HE IS SUPPOSED TO BE OFF DUTY CONSIDER HIS SUMMER HOLIDAY LAST YEAR WHEN HE CRUISED THE MEDITERRANEAN ON HIS NEW YACHT WHILE ANCHORED OFF THE COAST OF CORSICA HE SPENT TIME WITH HIS GROWN CHILDREN TOOK IN SOME SUN AND NEGOTIATED THE FIVE HUNDRED TWENTY FIVE MILLION DOLLAR PURCHASE OF A SIXTY FOUR PERCENT STAKE IN STAR T. V. FOR THE SIGNING HE DISPATCHED NEWS CORPORATION'S CORPORATE JET TO FETCH STAR T. V.'S CHINESE OWNER FROM LONDON THE NEGOTIATORS JOINED IN A FAMILY LUNCH PREPARED BY HIS WIFE NOVELIST ANNA MURDOCH TYPICAL OF MR. MURDOCH HE ALSO USED HIS VACATION TO MAP OUT ANOTHER MAJOR MOVE THE TIMING OF A CONTROVERSIAL PLAN TO SHARPLY REDUCE THE NEWSSTAND PRICE OF NEWS CORPORATION'S LONDON NEWSPAPERS THE MOVE WHICH MANY INSIDERS PREDICTED WOULD BE DISASTROUS PROMPTED A THIRTY PERCENT DROP IN OPERATING PROFITS FROM THE BRITISH NEWSPAPERS FOR THE SIX MONTHS ENDING DECEMBER THIRTY FIRST THOUGH IT ALSO RESULTED IN CIRCULATION GAINS OF ALMOST THIRTY PERCENT AT HIS LONDON TIMES CRITICS SAY MR. MURDOCH'S TENDENCY TO MAKE SUCH QUICK DECISIONS AND NOT TO TAKE COUNSEL FROM OTHERS MAKES FOR CAPRICIOUSNESS IN NINETEEN NINETY ONE FOR EXAMPLE HE PLEDGED THAT HE WOULD SPEND FIFTY MILLION DOLLARS TO ONE HUNDRED MILLION DOLLARS TO START A RECORD COMPANY DECLARING THAT THAT WOULD BE NEWS CORPORATION'S NEXT FRONTIER AND THEN ABANDONED THE IDEA MOST CORPORATIONS ARE MUCH MORE ANALYTICAL ABOUT MAKING ACQUISITIONS WHILE RUPERT IS INSTINCTIVE SAYS FRANK BARLOW MANAGING DIRECTOR OF THE BRITISH CONGLOMERATE PEARSON P. L. C. WHICH HAD COMPETED WITH NEWS CORPORATION IN THE BIDDING FOR STAR T. V. I'VE NO DOUBT THAT RUPERT HAS MADE DEALS BY SCRIBBLING A FEW CALCULATIONS ON THE BACK OF AN ENVELOPE MR. MURDOCH'S LOYAL LIEUTENANTS KNOWN AS HIS QUOTE CLONES QUOTE AMONG SOME INSIDERS ARE GENERALLY HAPPY TO LET HIM CALL THE SHOTS SEVERAL HAVE FOLLOWED HIM AROUND THE WORLD AND STAYED WITH HIM FOR DECADES HE SOMETIMES PUTS THEM IN TOP POSTS IN BUSINESSES IN WHICH THEY HAVE NO EXPERIENCE AS SAM CHISHOLM A RELATIVELY RECENT RECRUIT WHO RUNS BSKYB PUTS IT I'D DO ANYTHING FOR HIM THIS JOB ISN'T JUST A MATTER OF LIFE AND DEATH TO ME IT'S FAR MORE IMPORTANT THAN THAT MR. MURDOCH DOESN'T MEDDLE EQUALLY IN HIS VARIOUS BUSINESSES EVERY THURSDAY FLASH REPORTS BOOKS OF FINANCIAL DATA LAND ON HIS DESK FROM NEW YORK LONDON AND SYDNEY HE REVIEWS THEM ALL BUT NEWSPAPERS AND TELEVISION SEEM TO INTEREST HIM MORE THAN MOVIES AND BOOKS PERHAPS BECAUSE HE BUILT UP NEWS CORPORATION FROM A SINGLE AUSTRALIAN NEWSPAPER INHERITED FROM HIS FATHER DURING THE NINETEEN EIGHTIES FOR EXAMPLE HE RAN THE GLOBAL COMPANY FROM HIS OFFICE AT THE NEW YORK POST PHIL BUNTON FORMER NIGHT MANAGING EDITOR SAYS IT WASN'T UNUSUAL FOR MR. MURDOCH TO CRITIQUE THE PAPER THE NEXT MORNING PICTURE BY PICTURE HEADLINE BY HEADLINE SAYING HATE THIS HATE THAT WHY IS PATTY HEARST IN A SWIMSUIT ON THE COVER THEN AFTER ATTACKING THE PAPER WITH A RED MARKER MR. MURDOCH WOULD SAY QUOTE PRETTY GOOD NEWSPAPER HUH QUOTE AFTER HE HAD TO SELL THE POST IN ORDER TO BUY A NEW YORK T. V. STATION HE HAS SINCE BOUGHT BACK THE NEWSPAPER MR. MURDOCH SWITCHED HIS FOCUS TO HIS BRITISH SATELLITE T. V. BUSINESS WHICH WAS MIRED IN LOSSES UNTIL IT MERGED WITH A COMPETITOR LEAVING NEWS CORPORATION WITH A FIFTY PERCENT STAKE NEXT HE SHIFTED HIS ATTENTION TO FOX MOVING TO THE WEST COAST WHERE HE NOW PREVIEWS PILOTS AND SPENDS HOURS PUSHING COLORED SQUARES AROUND THE NETWORK SCHEDULE BOARD IN A CONFERENCE ROOM PETER CHERNIN A FOX T. V. EXECUTIVE WHOM MR. MURDOCH PROMOTED TO HEAD THE FOX MOVIE STUDIO SAYS IT WAS MR. MURDOCH WHO FIRST SUGGESTED DURING A MARATHON SCHEDULE MEETING THAT THE SIMPSONS BE SWITCHED TO A TIME SLOT OPPOSITE RIVAL N. B. C.'S COSBY SHOW THE BOLD MOVE PROVED EXTREMELY SUCCESSFUL MORE RECENTLY HE VETOED A PROPOSED HOWARD STERN TALK SHOW ON FOX AFTER HEARING ABOUT MR. STERN'S RAUNCHY PAY PER VIEW NEW YEAR'S EVE SPECIAL AND APPROACHED BROADCASTER DIANE SAWYER ABOUT A FOX SHOW BY CONTRAST HE IS DETACHED ALMOST INDIFFERENT WHEN IT COMES TO BOOKS AND FILMS HE DIDN'T READ SCREENPLAYS WHEN I WAS THERE OR WATCH DAILIES OR GO TO AUDIENCE SCREENINGS SAYS MR. ROTH THE FORMER STUDIO CHIEF HE MOSTLY WAS INTERESTED IN THE MOVIES THAT COST A LOT OF MONEY THE SAME GOES FOR HARPERCOLLINS NEWS CORPORATION'S BOOK PUBLISHER THOUGH MR. MURDOCH DID PERSONALLY WOO PRIME MINISTER MARGARET THATCHER WHO WAS PAID MORE THAN EIGHT MILLION DOLLARS FOR AN AUTOBIOGRAPHY IN NOVEMBER WHEN MRS. THATCHER CAME TO THE U. S. FOR HER BOOK TOUR HE LOANED HER THE NEWS CORPORATION JET FOR TEN DAYS HE WAS LEFT SCRAMBLING TO TAKE THE RED EYE OVERNIGHT COMMERCIAL FLIGHT TO NEW YORK EXECUTIVES FROM HARPERCOLLINS THE STUDIO AND OTHER UNITS ARE ALWAYS ANXIOUS TO GRAB SOME FACE TO FACE TIME WITH THEIR BOSS ONE THURSDAY HE SUMMONED SEVERAL DOZEN OF THEM TO THE FOUR SEASONS HOTEL FOR A NEWS CORPORATION TECHNOLOGY CONFERENCE THIS IS A SUBJECT CLOSE TO HIS HEART FOR ALL THE TALK OF THE COMING INFORMATION SUPERHIGHWAY MR. MURDOCH ADMITS TO BEING A NEOPHYTE WHEN IT COMES TO INTERACTIVE TECHNOLOGY THAT SAME DAY HE HAD SPOKEN TO JOHN MALONE CHAIRMAN OF TELE COMMUNICATIONS INCORPORATED AND AFTER GOSSIPING ABOUT THE PARAMOUNT BATTLE AND WHAT TED TURNER WAS UP TO THEY HAD DISCUSSED THE COST TO CABLE COMPANIES OF DIGITAL COMPRESSION HOW FAST ARE YOU GOING TO BE DIGITIZING HE HAD ASKED YET AT THE CONFERENCE MR. MURDOCH BORED QUICKLY SLIPS OUT EARLY HE HEADS BACK FOR THE OFFICE WHERE HE PERUSES THE FLASH REPORTS AND TAKES A SELECT FEW PHONE CALLS FROM PEOPLE LIKE MR. OVITZ AND TIME WARNER'S CHAIRMAN GERALD LEVIN THEN AS HE DOES AT ABOUT SEVEN EACH EVENING MR. MURDOCH LEAVES FOR HOME WHERE HE PHONES HIS MANAGERS IN AUSTRALIA BECAUSE IT IS ALREADY THE NEXT DAY THERE HE RARELY HITS THE HOLLYWOOD CIRCUIT AT NIGHT AN OUTSIDER BY NATURE HE PREFERS TO TALK SHOP WITH PEOPLE LIKE MR. MALONE HIMSELF A NO NONSENSE MANAGER WITH A LOW PROFILE PRIVATE LIFE QUOTE I REALLY ENJOY RUPERT QUOTE MR. MALONE SAYS I THINK HE'S A VISIONARY HE'S WILLING TO RISK LOOKING BAD FOR A PROTRACTED PERIOD FOR OVERPAYING ON SOMETHING LIKE STAR T. V. OR GETTING THE N. F. L. WHICH I THINK WAS BRILLIANT THE MOST SERIOUS QUESTION FACING NEWS CORPORATION IN MR. MALONE'S VIEW IS SUCCESSION AT THE COMPANY WHICH IS THIRTY TWO PERCENT CONTROLLED BY THE MURDOCH FAMILY MR. MURDOCH HAS SAID HE WANTS TO HAND THE COMPANY DOWN TO HIS THREE CHILDREN BY ANNA HIS SECOND WIFE BUT NOT FOR ANOTHER DECADE THE ELDEST TWENTY FIVE YEAR OLD ELISABETH ALREADY WORKS AS THE HEAD OF PROGRAMMING FOR F. X. A SOON TO BE LAUNCHED CABLE CHANNEL AND HER GHANAIAN BORN HUSBAND DOES FINANCIAL ANALYSIS FOR THE FOX STATION GROUP THE OTHER TWO LACHLAN AND JAMES ARE STILL AT COLLEGE AT PRINCETON AND HARVARD RESPECTIVELY FOR NOW MR. MURDOCH IS KEEPING A TIGHT GRIP ON THE REINS IN RUPERT'S EMPIRE THERE IS ONLY ROOM FOR ONE EMPEROR NOTES MR. MALONE AND THAT MANAGEMENT STYLE COULD PROVE TO BE FATALLY FLAWED THE REAL ISSUE IS WHAT HAPPENS IF SOMETHING HAPPENS TO RUPERT SAYS MR. MALONE THE CHARACTER OF THE COMPANY WOULD HAVE TO CHANGE AND BECOME MORE TRADITIONAL YOU WON'T FIND ANOTHER RUPERT MURDOCH HE JUST DOESN'T EXIST QUOTE WELL TODAY WEBSTER HUBBELL SETTLES IN AS REGENT AT THE JUSTICE DEPARTMENT DEPUTY ATTORNEY GENERAL PHILIP HEYMANN HEADED BACK TO HARVARD FRIDAY A QUOTE PUSHEE QUOTE IN THE WORDS OF A WASHINGTON POST EDITORIAL ATTORNEY GENERAL JANET RENO STILL SITS ON THE THRONE THOUGH UNEASILY HER HALO ASKEW OVER THE DEPARTURE OF AIDE LULA RODRIGUEZ AMID VOTE FRAUD SUSPICIONS NOT TO MENTION A STIFF ROUND OF DISPARAGING LEAKS IT COULD SCARCELY BE CLEARER THAT THE ADMINISTRATION OF JUSTICE IS NOW DOMINATED BY THE ASSOCIATE ATTORNEY GENERAL FORMER ROSE LAW FIRM PARTNER OF THE FIRST LADY SUGAR BOWL TACKLE AND BIG FRIEND OF BILL JUST IN CASE ANYONE MISSED THE POINT WHEN MR. HEYMANN DECIDED TO GO SOONER RATHER THAN LATER HE TOLD MR. HUBBELL NOT MS. RENO INDEED IN EXPLAINING HIS CONFLICT OF MANAGEMENT STYLE WITH MS. RENO HE TOLD U. S. NEWS WHEN IT COMES TO GIVING REGULAR JUSTICE INPUT INTO ADMINISTRATION POLICIES WE HAVE RELIED TOO EXCLUSIVELY ON WEBB HUBBELL'S FREE AND COMFORTABLE ACCESS TO THE WHITE HOUSE AND ALTHOUGH WEBB IS EFFECTIVE THERE ARE COSTS TO SUCH AN INFORMAL AND AD HOC APPROACH IN OUR EARLIER SCRUTINY WHO IS WEBSTER HUBBELL I THE SECOND THE THIRD AND THE FOURTH WE QUOTED MS. RENO ON A. B. C. SAYING THAT DURING THE WACO FIASCO THE PRESIDENT NEVER SPOKE TO HER ONLY TO WEBB SO IT IS OF SOME MOMENT THAT THE REGENT HAS PROBLEMS OF HIS OWN STEMMING NOT ONLY FROM HIS FRIENDSHIP WITH THE PRESIDENT AND PARTNERSHIP WITH THE FIRST LADY BUT HIS OWN ACTIONS IN A WHITEWATER RELATED LAWSUIT THE SUIT WAS AGAINST THE LITTLE ROCK ACCOUNTING FIRM OF FROST AND COMPANY OVER THE AUDIT THE ROSE LAW FIRM HAD USED TO HELP PERSUADE REGULATORS NOT TO CLOSE MADISON GUARANTY THE THRIFT RUN BY THE CLINTONS' WHITEWATER PARTNER JAMES MCDOUGAL THE F. D. I. C. HIRED ROSE ON THE BASIS OF THE REPRESENTATION BY THE LATE VINCENT FOSTER THAT IT DOES NOT REPRESENT ANY THRIFTS MADISON BY THAT TIME BEING DEFUNCT THE F. D. I. C. IS LOOKING INTO THIS MATTER PRESUMABLY IT WILL EVENTUALLY REPORT THAT EVERYTHING'S O. K. BECAUSE BACK THEN MR. HUBBELL WHISPERED INTO SOMEONE'S EAR THAT ROSE HAD REPRESENTED MADISON BUT THE QUESTION STILL REMAINS HOW DID ROSE GET ON BOTH SIDES OF THESE ISSUES TO PUT THE SINISTER SUSPICION PLAINLY COULD IT BE THAT MR. HUBBELL AND MR. FOSTER RECOGNIZING THAT THEIR FRIENDS AND INDEED THEIR FIRM WERE IMPLICATED IN FROST'S DECEPTIVE AUDIT MANAGED TO INSINUATE THEMSELVES AS THE GOVERNMENT'S ATTORNEY SO THEY COULD FIX THE TICKET THE CHICAGO TRIBUNE HAS DISCOVERED TWO MORE CASES IN WHICH ROSE REPRESENTED GOVERNMENT REGULATORS ITS NOVEMBER THIRD REPORT DISCUSSES SUITS ARISING OUT OF THE FAILURE OF TWO ILLINOIS THRIFTS FIRST AMERICAN SAVINGS AND LOAN ASSOCIATION OF OAK BROOK AND HOME FEDERAL SAVINGS AND LOAN OF CENTRALIA EACH HAD STARTED LAWSUITS LATER CONTINUED BY THE GOVERNMENT AGAINST THE LITTLE ROCK BOND FIRM HEADED BY DAN LASATER THEY ALLEGED THAT THE LASATER FIRM HAD LOST THE THRIFTS' MONEY IN UNAUTHORIZED TRADES CONTRIBUTING TO FAILURES TAXPAYERS HAD TO REDEEM THROUGH DEPOSIT INSURANCE MR. LASATER WAS A BIG CONTRIBUTOR TO THE CLINTON GUBERNATORIAL CAMPAIGNS AND A BIG UNDERWRITER OF ARKANSAS BOND ISSUES ALSO A BENEFACTOR WHO PROVIDED ROGER CLINTON THE PRESIDENT'S BROTHER A JOB AND MONEY FOR DEBTS CONNECTED TO HIS DRUG PROBLEM MR. LASATER WAS ALSO THE HOST OF LAVISH PARTIES LEADING TO HIS OWN CONVICTION AND JAILING ON COCAINE CHARGES THE ROSE FIRM LANDED THE GOVERNMENT'S FIRST AMERICAN CASE SHORTLY AFTER TAKING ON THE MADISON ONE THE TRIBUNE REPORTED THAT WHILE MR. HUBBELL HANDLED MOST OF THE S. AND L. WORK THIS CASE WAS ASSIGNED TO MR. FOSTER AND HILLARY CLINTON THE HOME FEDERAL THRIFT HAD HIRED ROSE BEFORE BEING SEIZED BY THE GOVERNMENT BUT THERE IS A CONTROVERSY ABOUT MR. LASATER BEING REPRESENTED BY A RECENTLY DEPARTED ROSE LAWYER WHO'D WORKED ON THE FIRST AMERICAN SUIT WITH MRS. CLINTON AND MR. FOSTER THE HOME FEDERAL CASE FILED AT FOUR POINT SIX MILLION DOLLARS WAS SETTLED FOR TWO HUNDRED FIFTY THOUSAND DOLLARS ON MR. FOSTER'S ADVICE THE FIRST AMERICAN CASE FILED AT THREE POINT THREE MILLION DOLLARS WAS SETTLED FOR TWO HUNDRED THOUSAND DOLLARS AN F. D. I. C. SPOKESMAN HAS REASSURED OUR REPORTER THAT SO FAR AS THEY HAVE DETERMINED THE FIRST LADY WAS NOT INVOLVED IN THE SETTLEMENT AT THE TIME OF THESE SETTLEMENTS MR. LASATER WAS IN PRISON HAVING GIVEN LEGAL AUTHORITY TO MANAGE HIS AFFAIRS TO A BUSINESS ASSOCIATE PATSY THOMASSON THOSE WHO KEEP AT THEIR BEDSIDE A WHITEWATER CAST LIST WILL RECOGNIZE HER NAME AS ONE OF THE THREE WHITE HOUSE AIDES TO VISIT VINCENT FOSTER'S OFFICE THE NIGHT OF HIS DEATH NOT TO WORRY THE REGENT AT JUSTICE HAS RECUSED HIMSELF INDEED THE WHOLE MATTER IS IN THE HANDS OF SPECIAL COUNSEL ROBERT FISKE WHO CAN SORT OUT THE ROSE PARTNER'S POSSIBLE CONFLICTS OF INTEREST WHICH REMINDS US WHAT ABOUT MR. FISKE'S OWN FIRM DAVIS POLK AND WARDWELL UPON INQUIRY FROM SENATOR ARLEN SPECTER MS. RENO SAID THAT MR. FISKE HAS TAKEN A FULL LEAVE OF ABSENCE WHICH MEANS SOMETHING OTHER THAN RESIGNATION DAVIS POLK IS A SPRAWLING FIRM WITH SPRAWLING CLIENTS MORGAN GUARANTY FOR STARTERS SEEMS TO US THERE'S A POTENTIAL FOR CONFLICT OF INTEREST WITH PRACTICALLY THE WHOLE WORLD AGAIN NOT TO WORRY MS. RENO TOLD THE SENATOR THAT MR. FISKE GAVE ASSURANCES HE WAS NOT AWARE OF ANY DAVIS POLK CLIENT INVOLVED IN WHITEWATER HMMM WHEN THE SPECIAL COUNSEL GETS AROUND TO LEARNING SOMETHING ABOUT WHITEWATER HE WILL DISCOVER ITS LARGEST SINGLE TRANSACTION WAS A LAND DEAL WITH INTERNATIONAL PAPER COMPANY WHICH STANDARD COMPILATIONS LIST AMONG DAVIS POLK'S PROMINENT CLIENTS LAST WEEK THE WASHINGTON TIMES REPORTED THAT ANONYMOUS SOURCES AT THE ROSE LAW FIRM SAID IT WAS SHREDDING DOCUMENTS RELATING TO WHITEWATER THE ASSOCIATED PRESS INQUIRED AT MR. FISKE'S LITTLE ROCK OFFICE AND REPORTED MR. FISKE IS AWARE OF THE WASHINGTON TIMES REPORT ON SHREDDING OF DOCUMENTS THAT WILL BE INVESTIGATED BY HIS OFFICE SAID A STAFF ASSISTANT WHO WOULD IDENTIFY HERSELF ONLY AS JOYCE REUTERS ALSO FOUND JOYCE WHILE SEEKING MR. FISKE IN LITTLE ROCK REPORTING THAT HIS OFFICE IS UNMARKED BUT HAS A BLACK ELECTRONIC KEYPAD BESIDE THE DOOR BUT NOT TO WORRY REPORTS SAY MR. FISKE HAS LEASED HIS OFFICES FOR THREE YEARS WHICH IS TO SAY BEYOND THE NEXT PRESIDENTIAL ELECTION WHAT ALL OF THESE ISSUES NEED IS A GOOD AIRING AND EXPLANATION NOT TO A COURT BUT TO THE AMERICAN PUBLIC WHILE CONGRESSIONAL DEMOCRATS ARE HESITANT THE VEHICLE FOR SUCH AN AIRING WILL SOON BE AVAILABLE THERE WILL HAVE TO BE CONFIRMATION HEARINGS FOR MR. HEYMANN'S SUCCESSOR THE RUMORED DESIGNEE IS PENTAGON COUNSEL JAMIE GORELICK WHO SHARES WITH MR. FISKE THE DISTINCTION OF HAVING BEEN ONE OF CLARK CLIFFORD'S LAWYERS IN THE B. C. C. I. CASE AS A DEPUTY IS CONSIDERED MR. HUBBELL'S REGENCY AT JUSTICE IS SURELY RELEVANT ALL THAT'S NECESSARY IS FOR THE REPUBLICAN MINORITY ON JUDICIARY TO FOLLOW THE EXAMPLE FRESHMAN SENATOR LAUCH FAIRCLOTH IS SETTING ON THE BANKING COMMITTEE AND START ASKING THE OBVIOUS QUESTIONS IT HAS OFTEN BEEN SAID QUOTE IF YOU INVENT A BETTER MOUSETRAP THE WORLD WILL BEAT A PATH TO YOUR DOOR QUOTE BUT I DON'T BELIEVE IT FOR A SECOND YOU MUST BEAT A PATH TO THE WORLD'S DOOR AND YOU MAY HAVE TO KNOCK ON THAT DOOR UNTIL YOUR KNUCKLES ARE BLOODY LET'S SUPPOSE YOU'VE DISCOVERED AN INVENTOR WHO HAS DEVISED WHAT YOU KNOW IS AN IMPORTANT NEW TECHNOLOGY YOU'VE INCORPORATED RECRUITED FUNDS AND PUSHED THE START BUTTON ON A NEW RESEARCH AND DEVELOPMENT COMPANY HOWEVER YOUR INVENTOR THOUGH TECHNICALLY PROFICIENT HAS HAD NO COMMERCIALLY SUCCESSFUL INVENTIONS AS YET A DIAMOND IN THE ROUGH BASED ON MY OWN EXPERIENCE THE ODDS AGAINST POLISHING UP SUCH A GEM FOR COMMERCIAL SUCCESS ARE GREAT REGARDLESS OF YOUR INVENTOR'S TECHNICAL EXPERTISE YOU WILL SOON DISCOVER THAT POTENTIAL CLIENTS WILL VIEW HIM WITH GREAT SKEPTICISM VENTURE CAPITAL FIRMS AND POTENTIAL LICENSEES HABITUALLY SHY AWAY FROM INVENTORS WITH NO PREVIOUS SUCCESS IN THE MARKETPLACE NEVERTHELESS AS MY OWN STORY DEMONSTRATES THE ODDS CAN BE BEATEN MY INVENTORS WERE A PAIR OF RUSSIAN ENGINEERS POLITICAL REFUGEES WHO ARRIVED ON OUR SHORES IN NINETEEN SEVENTY FOUR FROM LENINGRAD VIA VIENNA AND ROME NAUM AND ALEX ENDED UP IN DES MOINES IOWA WITH THEIR WIVES CHILDREN AND ONE SUITCASE PER PERSON UNABLE TO FIND EMPLOYMENT AS ENGINEERS THEY WERE WORKING AS DRAFTSMEN FOR A CONSTRUCTION COMPANY WHICH IS WHERE I MET THEM THEY PROFESSED TO BE EXPERTS IN THE AUTOMATIC CONTROL OF INDUSTRIAL COMPRESSORS AND BROUGHT WITH THEM A DOZEN SOVIET PATENTS THAT I EXAMINED THROUGH A TRANSLATOR HAVING A DEGREE OF MY OWN IN MATHEMATICS AND CARRYING A SELF CONFIDENCE THAT I CAN ONLY FIND ASTONISHING TODAY I CONVINCED MYSELF AND MY ASSOCIATES THAT THEIR EXPERTISE WAS WORTH BACKING WE INVESTED THE SEED CAPITAL AND SET UP THE TWO INVENTORS IN A BACK OFFICE OF OUR TEXTILE FACTORY OUR INVENTORS' FIRST U. S. PATENTS WENT FAR BEYOND THEIR EARLIER RUSSIAN WORK IN THAT LITTLE BACK OFFICE THEY DESIGNED THREE COMPLETELY INNOVATIVE CONTROLLERS FOR THE BIG TURBO COMPRESSORS USED IN STEEL MILLS IN OIL AND GAS PRODUCTION AND REFINING AND IN CHEMICAL PLANTS THESE CONTROLLERS CAN BE DESCRIBED AS SMALL INDUSTRIAL COMPUTERS THAT AUTOMATICALLY OPERATE THE COMPRESSORS OUR INVENTORS CLAIMED TO OFFER MAJOR ENERGY SAVINGS TO COMPRESSOR OWNERS DECREASED COMPRESSOR MAINTENANCE COSTS AND MORE RELIABLE PRODUCTION BUT THEY HAD NO INSTALLATIONS IN NORTH AMERICA TO ESTABLISH THEIR CREDIBILITY SO OUR LITTLE COMPANY COMPRESSOR CONTROLS CORPORATION FACED A MIGHTY TASK WE SOON DISCOVERED THAT RUSSIAN INVENTIONS AND ENGINEERING INSTALLATIONS CARRIED NO WEIGHT WITH OUR PROSPECTIVE CUSTOMERS OUR INVENTORS WERE TREATED AS NOVICES THOUGH TIME WOULD EVENTUALLY PROVE THAT NAUM WAS A GENIUS IN HIS FIELD OF ENGINEERING I HAVE SINCE LEARNED THAT A SIMILAR SKEPTICISM FACES U. S. INVENTORS WHO LACK COMMERCIALLY SUCCESSFUL INVENTIONS THE OBVIOUS LICENSEES FOR OUR PATENTS WE BELIEVED WOULD BE MAJOR INDUSTRIAL CONTROL MANUFACTURERS SUCH AS FOXBORO HONEYWELL FISHER AT OUR VERY FIRST MEETING HOWEVER THE OPPOSING IN HOUSE CONTROL EXPERT WAS SO ANTAGONISTIC THAT A SHOUTING MATCH DEVELOPED BETWEEN OUR INVENTORS AND HIM AND THE AIR BECAME BLUE WITH HOSTILITY THIS WAS THE N. I. H. EFFECT THE INFAMOUS NOT INVENTED HERE SYNDROME OTHER CONTROL COMPANIES WERE MORE POLITE BUT QUITE INDIFFERENT AS I WATCHED COMPLETELY FASCINATED BY THESE BLACKBOARD DEBATES I CAME TO THE CONCLUSION THAT OUR INVENTORS DID INDEED KNOW MORE THAN THEIR N. I. H. OPPONENTS SO OUR LITTLE TWO PERSON COMPANY SOLDIERED ON WE DUG DEEP INTO OUR POCKETS TO KEEP THE OPERATION GOING FOR WE COULDN'T RECRUIT OUTSIDE INVESTORS NOW WE TARGETED THE COMPRESSOR MANUFACTURERS NOT MUCH LUCK THERE EITHER OUR CONTROLLERS WERE MUCH MORE EXPENSIVE THAN THOSE OF OUR COMPETITORS SO THE COMPRESSOR MANUFACTURERS SAW OUR EXPENSIVE CONTROLLERS ONLY AS AN ADDED COST NOT AS AN ADDED VALUE FOR THEM FINALLY WE REALIZED THAT OUR CONTROLLERS WOULD BE VALUED HIGHEST BY THE COMPRESSOR USERS THE STEEL MILLS REFINERIES PIPELINES AND CHEMICAL PRODUCERS WHO WOULD DIRECTLY BENEFIT FROM THE ENERGY SAVINGS FOR THEIR COMPRESSOR OPERATIONS THEY WOULD ALSO BENEFIT FROM LOWER COMPRESSOR REPAIR COSTS AND A MORE RELIABLE PRODUCTION LINE WHEN WE CALLED ON THESE INDUSTRIES WE WERE MET WITH DEEP INTEREST BUT MUCH CAUTION THE COMPRESSORS THAT WE OFFERED TO CONTROL WERE SOMETIMES MULTIMILLION DOLLAR MACHINES OF TWENTY THOUSAND HORSEPOWER OR MORE AND VITAL TO THE PRODUCTION OF STEEL OIL AND GAS AND CHEMICALS THE CLIENTS' ENGINEERS ACKNOWLEDGED THAT NAUM DISPLAYED VERY IMPRESSIVE KNOWLEDGE OF CONTROL THEORY AND ITS APPLICATION TO COMPRESSORS BUT WE HAD NO INSTALLATIONS IN NORTH AMERICA TO DEMONSTRATE THAT OUR THEORIES WORKED IN REAL LIFE OUR FIRST BREAK CAME FROM A PIPELINE COMPRESSOR STATION OWNED BY NORTHERN NATURAL GAS ONE COMPLEX TURBO COMPRESSOR HAD GIVEN THEM NOTHING BUT TROUBLE AND NONE OF THE MAJOR CONTROL COMPANIES WERE ABLE TO MAKE IT RUN AS A LAST RESORT WE WERE CALLED IN TO INSTALL OUR CONTROLS WE DID AND ALL WENT WELL OUR NEXT MAJOR INSTALLATION CAME AT AN AMOCO REFINERY IN TEXAS THEIR GASOLINE PROCESS LINE KEPT SHUTTING DOWN DUE TO TROUBLE WITH THE CATALYTIC CRACKER TURBO COMPRESSOR SOMETHING THAT TURNS HEAVY OIL INTO LIGHTER FUEL EACH OF OUR COMPETITORS HAD FAILED TO FIX THE COMPRESSOR SO THEY CALLED US IN DESPERATION TO INSTALL OUR CONTROLLERS AGAIN ALL WENT WELL THESE TWO INSTALLATIONS WERE THE BEGINNING OF OUR CREDIBILITY AND OF OUR COMPANY'S SUCCESS WE WERE NOW ABLE TO LURE A FIRST RATE MARKETING MANAGER FROM A RIVAL CONTROL COMPANY FROM THAT POINT ON IT WAS JUST STRAIGHT HARD WORK FOR OUR LITTLE COMPANY AND STEADILY EARNED GAINS SUCCESSFUL INSTALLATIONS MULTIPLIED AND SPREAD WORLD WIDE THE COMPANY EVENTUALLY WAS ACQUIRED FOR THIRTY FIVE MILLION DOLLARS AND IT'S STILL GROWING I HAVE SINCE WORKED WITH SEVERAL OTHER HIGH TECH STARTUPS AND I AM NOW CONVINCED THAT INNOVATIVE TECHNOLOGY NO MATTER HOW IMPRESSIVE IS NEVER ENOUGH BY ITSELF AN UNTRIED INVENTOR MUST PROVE THAT THE PRODUCT WORKS IN REAL LIFE NOT JUST IN BLACKBOARD DEMONSTRATIONS BUT THAT'S NOT ALL THE NEW COMPANY WILL LIVE OR DIE BY ITS MANUFACTURING MARKETING AND FINANCIAL DECISIONS INVENTORS NO MATTER HOW INTELLIGENT RARELY HAVE EXPERIENCE IN THESE FIELDS UNFORTUNATELY THAT DOES NOT PRECLUDE INVENTORS FROM HAVING IRONCLAD OPINIONS ON HOW TO MANUFACTURE MARKET OR FINANCE THEIR INVENTIONS INVENTIONS FOR WHICH THEY HAVE ALREADY MADE SO MANY SACRIFICES AN EXPERIENCED AND INDEPENDENT BOARD OF DIRECTORS IS A NECESSITY IF THE INVENTION LOOKS EXCITING IT IS NOT TOO DIFFICULT TO ASSEMBLE A BOARD WITH GOOD GENERAL BUSINESS EXPERIENCE BUT IT IS MUCH MORE DIFFICULT TO FIND BOARD MEMBERS WHO WILL TAKE THE TIME TO UNDERSTAND SOMETHING OF THE INVENTION OR ITS MANUFACTURING OR WHO WILL MAKE CUSTOMER CALLS TO LEARN ABOUT THE MARKETING FIRSTHAND WITH A TALENTED INVENTOR A USEFUL PRODUCT AND A BOARD WHO WILL LEARN ENOUGH OF THE PRODUCT TO MAKE INDEPENDENT BUSINESS DECISIONS YOU WILL HAVE FUN FOR SURE AND YOU MIGHT EVEN MAKE A LOT OF MONEY MR. LADIN IS A DIRECTOR AND CONSULTANT FOR SEVERAL HIGH TECH VENTURES JULIUS A. VIDA SIXTY FIVE YEARS OLD WAS NAMED A DIRECTOR OF THIS BIOPHARMACEUTICAL COMPANY INCREASING THE BOARD'S SIZE TO SIX MR. VIDA RECENTLY RETIRED AS VICE PRESIDENT BUSINESS DEVELOPMENT LICENSING AND STRATEGIC PLANNING AT BRISTOL MYERS SQUIBB COMPANY YOUR JANUARY TWENTY FIRST PAGE ONE ARTICLE CONCERNING ABUSES BY LIFE INSURANCE AGENTS PAINTS AN UNFAIR PICTURE OF A PROFESSION THAT HAS DONE MORE TO SUSTAIN PEOPLE THAN ANY OTHER PROFESSION THE LIFE INSURANCE BUSINESS IS MADE UP OF PEOPLE WHO CONSIDER THE CLIENTS' NEEDS AND RESPOND TO THEM WE ALL REGRET THE EXISTENCE OF THE BAD APPLE AND HAVE RULES AND REGULATIONS TO RESPOND TO A SITUATION WHEN IT IS BROUGHT TO THE ATTENTION OF THE INSURANCE CARRIER WE ARE VERY CONSCIOUS OF OUR SOCIAL RESPONSIBILITY AND I CAN SAY WITH PRIDE THAT THE AGENTS I KNOW HAVE A DEGREE OF MORAL SOCIAL AND FISCAL RESPONSIBILITY TO THE CLIENT THAT IS SURPASSED BY NO OTHER PROFESSION NATIONAL CONVENIENCE STORES INCORPORATED AGREED TO SWAP EIGHTY OF ITS STOP N. GO STORES IN CALIFORNIA AND GEORGIA FOR EIGHTY EIGHT CONVENIENCE STORES IN TEXAS OWNED BY CIRCLE K. CORPORATION WITH THE TRANSACTION TERMS OF WHICH WEREN'T DISCLOSED EACH COMPANY IS CONCENTRATING FURTHER ITS GEOGRAPHICAL SCOPE BOTH RETAIL CHAINS EMERGED FROM CHAPTER ELEVEN BANKRUPTCY LAW PROCEEDINGS LAST YEAR AND HAVE BEEN SCALING BACK OPERATIONS THE TRANSACTION IS EXPECTED TO BE COMPLETED IN LATE MARCH GIVING HOUSTON BASED NATIONAL CONVENIENCE A TOTAL OF SEVEN HUNDRED TWENTY THREE STORES ALL IN TEXAS DOWN FROM ONE THOUSAND ONE HUNDRED STORES IN TWENTY ONE MARKETS IN NINETEEN EIGHTY SIX CIRCLE K. OWNED BY BAHRAIN BASED HOLDING COMPANY INVESTCORP INTERNATIONAL INCORPORATED HAS ABOUT TWO THOUSAND FIVE HUNDRED STORES IN TWENTY EIGHT STATES DOWN FROM ABOUT FOUR THOUSAND SIX HUNDRED IN NINETEEN NINETY THE SALE TO NATIONAL CONVENIENCE WILL LEAVE CIRCLE K. WITHOUT ANY STORES IN THE HOUSTON OR DALLAS AREAS BUT THE COMPANY WILL STILL OPERATE TWO HUNDRED SEVENTY TWO OUTLETS ELSEWHERE IN TEXAS ROBERT G. BOHN FORMER VICE PRESIDENT FOR OPERATIONS WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER MR. BOHN FORTY YEARS OLD WILL REPORT TO R. EUGENE GOODSON FIFTY EIGHT WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER FRENCH INDUSTRIAL AND MEDIA GROUP MATRA HACHETTE S. A. SAID CONSOLIDATED REVENUE FOR NINETEEN NINETY THREE WAS DOWN ONE POINT NINE PERCENT TO FIFTY FOUR POINT OH FIVE BILLION FRANCS NINE POINT OH EIGHT BILLION DOLLARS FROM A YEAR EARLIER FIFTY FIVE POINT ONE BILLION FRANCS THE COMPANY SAID ITS DEFENSE SALES ROSE ZERO POINT NINE PERCENT TO FIVE POINT FIVE ONE BILLION FRANCS SPACE TECHNOLOGY SALES DROPPED SEVEN POINT SIX PERCENT TO FIVE POINT ONE THREE BILLION FRANCS TELECOMMUNICATIONS REVENUE ROSE ONE POINT SEVEN PERCENT TO SEVEN POINT FIVE BILLION FRANCS OTHER TRANSPORTATION SALES FELL THIRTY SIX PERCENT TO ONE POINT OH TWO BILLION FRANCS BOOK PUBLISHING REVENUE ROSE THREE POINT NINE PERCENT TO SIX POINT FOUR BILLION FRANCS WHILE PRESS REVENUE DROPPED SEVEN POINT NINE PERCENT TO EIGHT POINT ONE BILLION FRANCS DISTRIBUTION SERVICES REVENUE ROSE FOUR POINT FOUR PERCENT TO TWELVE POINT SIX BILLION FRANCS AUDIOVISUAL REVENUE ROSE FOUR POINT EIGHT PERCENT TO TWO POINT FOUR BILLION FRANCS MISCELLANEOUS SALES DROPPED TO SEVENTY SIX MILLION FRANCS FROM ONE HUNDRED NINETY SIX MILLION FRANCS THE COMPANY MADE THE ANNOUNCEMENT IN A REQUIRED LEGAL FILING IN THE BULLETIN DES ANNONCES LEGALES OBLIGATOIRES AMERICAN NURSERY PRODUCTS INCORPORATED SAID A BANKRUPTCY JUDGE APPROVED THE COMPANY'S PLAN TO EMERGE FROM CHAPTER ELEVEN UNDER THE PLAN SECURED LENDERS AGREED TO CONVERT SEVENTEEN MILLION DOLLARS OF DEBT INTO STOCK IN THE GROWER AND SHIPPER OF TREES AND SHRUBS LENDERS ALSO AGREED TO RESTRUCTURE SEVENTEEN MILLION DOLLARS IN DEBT GIVING IT A LOWER INTEREST RATE AND TO PROVIDE A FIVE MILLION DOLLAR LINE OF CREDIT THE COMPANY SAID MOST TRADE CREDITORS WILL GET EIGHTY PERCENT OF THEIR CLAIMS WHILE INVESTORS WHO HELD STOCK IN THE COMPANY WILL LOSE THEIR INVESTMENT THIS COMPANY HAS RESTRUCTURED INTO TWO DIVISIONS RACING OPERATIONS AND GAMING AND ENTERTAINMENT AND NAMED DONALD M. ROBBINS FORTY SIX YEARS OLD PRESIDENT OF THE RACING OPERATIONS DIVISION MR. ROBBINS HAS BEEN HOLLYWOOD PARK'S PRESIDENT SINCE NINETEEN NINETY ONE G. MICHAEL FINNIGAN FORTY FIVE WHO JOINED THE COMPANY IN NINETEEN EIGHTY NINE AS AN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WILL ASSUME THE ADDITIONAL POST OF PRESIDENT OF THE GAMING AND ENTERTAINMENT DIVISION DUPONT CANADA INCORPORATED SAID IT WILL ASK ITS SHAREHOLDERS TO APPROVE A THREE FOR ONE COMMON STOCK SPLIT UNDER THE PROPOSAL DUPONT CANADA WOULD ISSUE TWO ADDITIONAL SHARES FOR EVERY SHARE HELD BY HOLDERS OF RECORD MAY TWENTY SEVENTH HOLDERS ARE TO VOTE ON THE PROPOSAL AT THE ANNUAL MEETING SCHEDULED FOR MAY THIRTEENTH THE TORONTO COMPANY CURRENTLY HAS THIRTY POINT NINE MILLION SHARES OUTSTANDING DUPONT CANADA WHICH IS ABOUT SEVENTY SIX PERCENT OWNED BY DUPONT COMPANY SAID THE STOCK SPLIT WILL ENCOURAGE MORE INDIVIDUAL INVESTORS TO BUY THE CANADIAN COMPANY'S STOCK DUPONT CANADA ALSO SAID IT RAISED ITS QUARTERLY DIVIDEND BY TWENTY NINE PERCENT TO TWENTY TWO POINT FIVE CANADIAN CENTS SIXTEEN POINT EIGHT U. S. CENTS FROM SEVENTEEN POINT FIVE CANADIAN CENTS REFLECTING THE QUOTE STRONG UNDERLYING EARNINGS ACHIEVED IN NINETEEN NINETY THREE AND THE COMPANY'S CONFIDENCE IN ITS FUTURE PROSPECTS QUOTE AMID OVERALL WEAKNESS ON THE TORONTO STOCK EXCHANGE FRIDAY DUPONT CANADA SHARES CLOSED AT FIFTY THREE CANADIAN DOLLARS AND TWENTY FIVE CENTS THIRTY NINE U. S. DOLLARS AND SEVENTY CENTS DOWN THIRTY SEVEN POINT FIVE CANADIAN CENTS MUTUAL FUND SCORECARDS FOR U. S. GOVERNMENT BOND FUNDS PRINTED WEDNESDAY AND FOR GINNIE MAE FUNDS PRINTED THURSDAY SHOWED TOTAL RETURN PERFORMANCE SINCE DECEMBER THIRTY FIRST NINETEEN NINETY TWO RATHER THAN DECEMBER THIRTY FIRST NINETEEN NINETY THREE DUE TO A MISCALCULATION BY LIPPER ANALYTICAL SERVICES INCORPORATED THE TOTAL RETURN CALCULATIONS IN BOTH SCORECARDS FOR ONE MONTH TWELVE MONTHS AND FIVE YEARS WERE CORRECT AND ALL CALCULATIONS WERE BASED ON PERIODS ENDING JANUARY THIRTY FIRST NINETEEN NINETY FOUR Q. V. C. NETWORK INCORPORATED RULED OUT CHANGING ITS TEN BILLION DOLLAR OFFER FOR PARAMOUNT COMMUNICATIONS INCORPORATED BOOSTING THE ODDS THAT PARAMOUNT SHAREHOLDERS WILL CHOOSE A RIVAL OFFER FROM VIACOM INCORPORATED BY THE DEADLINE OF MIDNIGHT TONIGHT THE DECISION BY Q. V. C. CHAIRMAN BARRY DILLER PUTS VIACOM CHAIRMAN SUMNER REDSTONE ON THE BRINK OF WINNING THE EPIC FIVE MONTH OLD STRUGGLE CABLE AND ENTERTAINMENT GIANT VIACOM THUS WOULD GAIN CONTROL OF ONE OF THE SIX MAJOR HOLLYWOOD STUDIOS AND A LEADING PUBLISHER BUT AT A COST NEARLY TWO BILLION DOLLARS HIGHER THAN MR. REDSTONE ORIGINALLY INTENDED TO PAY Q. V. C. THE HOME SHOPPING COMPANY THAT SURFACED LAST SEPTEMBER WITH AN OFFER TO THWART THE LOWER PRICED FRIENDLY DEAL BETWEEN VIACOM AND PARAMOUNT CONTINUED TO APPEAL TO PARAMOUNT SHAREHOLDERS TO EMBRACE THE PROPOSED Q. V. C. PARAMOUNT COMBINATION AS OFFERING THE MOST LONG TERM VALUE QUOTE WE ARE EAGER TO BEGIN THE PROCESS OF CREATING SHAREHOLDER VALUE QUOTE Q. V. C. SAID IN A STATEMENT ATTACKING VIACOM PLANS FOR PARAMOUNT AS NEBULOUS TALK ABOUT SYNERGIES AND UNSPECIFIED CUTBACKS IT DECLARED THAT THE ONLY GOOD ARGUMENT IS ONE THAT CONTAINS CONCRETE PLANS FOR REBUILDING OF CURRENT ASSETS AND CREATION OF NEW ONES Q. V. C. MAINTAINED THAT ITS OFFER IS SUPERIOR WITH NO GAMES NO BELLS NO WHISTLES AND IS EASILY UNDERSTOOD YET DESPITE THE APPEAL PEOPLE IN THE Q. V. C. CAMP IN PRIVATE VIRTUALLY CONCEDED THE CONTEST THE GAME HAS RUN OUT OF GAS SAID ONE ADDED ANOTHER ODDS ARE WE LOSE IN A STATEMENT VIACOM WHICH HAS ALSO AGREED TO MERGE WITH BLOCKBUSTER ENTERTAINMENT CORPORATION SAID THAT THE THREE COMPANIES COMBINED WOULD REPRESENT THE FIRST STAGE OF CREATING A GLOBAL MEDIA POWERHOUSE OF UNPARALLELED PROPORTIONS IN THE INDUSTRY Q. V. C. HAS TRIED TO ARGUE THAT IT HAD THE SUPERIOR BID BASED ON MR. DILLER'S TRACK RECORD IN MANAGING ENTERTAINMENT ASSETS AND HAS CITED UNCERTAINTIES IN VIACOM'S PENDING EIGHT POINT FOUR BILLION DOLLAR ACQUISITION OF BLOCKBUSTER TAKEOVER STOCK TRADERS SAID THE Q. V. C. STATEMENT BOOSTED THE ODDS THAT VIACOM WILL BE ABLE TO WIN THE CONTEST TONIGHT BY GARNERING FIFTY POINT ONE PERCENT OF PARAMOUNT SHARES UNDER ITS BID OF ONE HUNDRED SEVEN DOLLARS A SHARE IN CASH FOR FIFTY POINT ONE PERCENT OF PARAMOUNT STOCK AND SECURITIES FOR THE REMAINING SHARES Q. V. C. HAS OFFERED ONE HUNDRED FOUR DOLLARS A SHARE FOR FIFTY POINT ONE PERCENT OF PARAMOUNT PLUS SECURITIES FOR THE REMAINING SHARES QUOTE THERE'S A PRETTY STRONG CHANCE THAT IT'S OVER TOMORROW NIGHT QUOTE SAID ONE TRADER RICHARD H. SCHNEIDER ANOTHER TRADER ESTIMATED THE CHANCES OF A VIACOM VICTORY TONIGHT AT EIGHTY PERCENT TO EIGHTY FIVE PERCENT THE CHANCES OF Q. V. C. ITSELF GAINING A FIFTY POINT ONE PERCENT STAKE WERE REGARDED AS CLOSE TO ZERO PARAMOUNT SHARES WERE UNCHANGED AT SEVENTY SIX POINT EIGHT SEVEN FIVE DOLLARS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY RECENTLY Q. V. C.'S ODYSSEY IN WHICH IT WON TWO LEGAL VICTORIES TO OVERCOME STIFF OPPOSITION FROM PARAMOUNT AND VIACOM AND SEIZE A COMMANDING LEAD IN THE BATTLE LOST STEAM IN RECENT WEEKS AS THE COMPANY BALKED AT GUARANTEEING THE VALUE OF Q. V. C. SECURITIES IN THE SECOND STEP OF ITS TWO STEP TENDER OFFER MOST OF THE SHARES OF PARAMOUNT ARE NOW OWNED BY ARBITRAGERS TAKEOVER STOCK SPECULATORS AND ALTHOUGH Q. V. C.'S CURRENT OFFER IS VALUED HIGHER THAN VIACOM'S THE ARBS FAVOR THE VIACOM OFFER BECAUSE IT INCLUDES JUST SUCH A GUARANTEE A SO CALLED COLLAR THAT INVOLVES ISSUING MORE VIACOM STOCK TO PARAMOUNT SHAREHOLDERS IN THE FUTURE IF THE PRICE OF THEIR HOLDINGS DOESN'T APPRECIATE BOTH BIDS ARE VALUED AT MORE THAN TEN BILLION DOLLARS BUT TRADERS REGARD THEIR DAILY PRICE CHANGES AS MEANINGLESS BECAUSE THE LEADING BIDDER'S STOCK TRADES AT A DISCOUNT TO THE TRAILING BIDDER'S THE DECISION BY Q. V. C. TO FORGO A COLLAR DESPITE ARBS' REQUEST FOR ONE WAS MADE BY MR. DILLER WHO ARGUED THAT SUCH A MOVE POSSIBLY WOULD EXPOSE Q. V. C. SHAREHOLDERS TO SEVERE DILUTION OF THEIR HOLDINGS Q. V. C. ALSO HAS MAINTAINED THAT THE COLLAR OFFERED BY VIACOM ULTIMATELY COULD HURT THAT COMPANY'S SHAREHOLDERS IF VIACOM'S STOCK FAILS TO GAIN GROUND OVER THE NEXT ONE TO THREE YEARS THE COMPANY WOULD HAVE TO ISSUE EXTRA PAYMENTS TO CURRENT PARAMOUNT SHAREHOLDERS IN REFUSING TO PROVIDE A COLLAR MR. DILLER DECIDED NOT TO HEED THE ADVICE OF TWO INVESTMENT BANKERS WHO SAID SUCH A MEASURE WAS NEEDED TO WIN HIS OWN ADVISERS AT ALLEN AND COMPANY AND BRUCE WASSERSTEIN WHO WAS ADVISING ONE OF Q. V. C.'S MAJOR INVESTORS IN THE PARAMOUNT OFFER BELLSOUTH CORPORATION IN THE END MR. DILLER'S ADVISERS AND INVESTORS DEFERRED TO HIS WISHES IN RECENT WEEKS PEOPLE IN THE Q. V. C. CAMP SAID THERE HAD BEEN INTERNAL STRESS AMONG ITS INVESTORS BELLSOUTH ADVANCE PUBLICATIONS INCORPORATED AND COX COMMUNICATIONS INCORPORATED OVER ISSUES RELATING TO INCREASED FINANCIAL SUPPORT MR. DILLER YESTERDAY ACKNOWLEDGED THAT ANY ALLIANCE BY A DISPARATE GROUP IS EXTRAORDINARILY HARD TO MAINTAIN BUT HE QUICKLY ADDED THE FACT THIS ONE HAS BEEN MAINTAINED IS A REAL COMPLIMENT TO EACH OF THE INVESTOR PARTIES Q. V. C.'S ONLY HOPE NOW APPEARS TO BE THAT NEITHER SIDE GAINS FIFTY POINT ONE PERCENT AND THE CONTEST CONTINUES WITHOUT ANY SET RULES PARAMOUNT HAS ASKED BOTH BIDDERS TO AGREE THAT WHICHEVER SIDE GETS MORE STOCK TENDERED TO IT BE DECLARED THE WINNER Q. V. C. HAS BALKED AT THAT BUT PARAMOUNT'S DIRECTORS MAY ATTEMPT TO AWARD THE CONTEST TO VIACOM ANYWAY IF VIACOM OBTAINS A LARGE PLURALITY OF STOCK ANALYSTS SAID THEY DIDN'T UNDERSTAND WHAT Q. V. C. HAD TO GAIN BY PUTTING OUT SUCH A CLEAR STATEMENT THAT IT DIDN'T PLAN TO RAISE ITS BID BECAUSE IT REMOVED ANY LINGERING DOUBT SOME TRADERS SAID THEY BELIEVED THE STATEMENT WAS AIMED AT IMPROVING Q. V. C.'S LITIGATION POSTURE IN CASE VIACOM DOESN'T GAIN FIFTY POINT ONE PERCENT VIACOM HAS THREATENED TO SUE Q. V. C. IF IT DOESN'T GAIN THE FIFTY POINT ONE PERCENT ON THE GROUNDS THAT MR. DILLER DROPPED HINTS LAST WEEK AT MEETINGS WITH ANALYSTS AND INVESTORS THAT Q. V. C.'S INVESTORS MIGHT PUT TOGETHER A PLAN TO BUY Q. V. C. STOCK IN THE FUTURE BOOSTING ITS PERCEIVED VALUE VIACOM HAS CHARGED THAT MR. DILLER'S STATEMENTS WERE A BACKDOOR WAY OF RAISING ITS BID THAT VIOLATED THE RULES THAT BIDS WEREN'T SUPPOSED TO BE CHANGED AFTER FEBRUARY FIRST Q. V. C. HAS RESPONDED THAT MR. DILLER DIDN'T MAKE OR HINT AT ANY PROMISES BUT PARAMOUNT FRIDAY SAID IT HAS GRAVE CONCERNS REGARDING Q. V. C.'S COMPLIANCE WITH THE BIDDING PROCEDURES Q. V. C.'S STATEMENT THAT IT WILL MAKE NO CHANGE IN ITS BID SEEMED TO RULE OUT Q. V. C.'S ALTERING ITS BID AFTER TODAY IF VIACOM FALLS SHORT OF THE FIFTY POINT ONE PERCENT TARGET VIACOM HAS ARGUED THAT Q. V. C. CAN'T CHANGE ITS BID AFTER TODAY EVEN IF VIACOM DOESN'T PREVAIL A CONTENTION THAT Q. V. C.'S LAWYER MARTIN LIPTON DISPUTED ON FRIDAY IF VIACOM GAINS FIFTY POINT ONE PERCENT OF PARAMOUNT'S STOCK BY MIDNIGHT TONIGHT THE BIDDING RULES REQUIRE Q. V. C. TO WITHDRAW ITS BID AND VIACOM MUST GIVE PARAMOUNT SHAREHOLDERS WHO TENDERED THEIR STOCK TO Q. V. C. ANOTHER TEN BUSINESS DAYS TO SWITCH TO VIACOM THEN VIACOM WOULD BE FREE TO ACQUIRE FIFTY POINT ONE PERCENT OF PARAMOUNT SHARES ON MARCH FIRST COMPLETING THE ACQUISITION SOME WEEKS LATER BY ISSUING SECURITIES FOR THE REMAINING SHARES ON FRIDAY VIACOM'S CLASS A STOCK ENDED TWENTY FIVE CENTS HIGHER AT THIRTY SIX DOLLARS AND FIFTY CENTS A SHARE IN COMPOSITE AMERICAN STOCK EXCHANGE TRADING Q. V. C. ROSE ONE DOLLAR AND TWENTY FIVE CENTS TO FORTY SIX POINT EIGHT SEVEN FIVE DOLLARS A SHARE IN NASDAQ STOCK MARKET TRADING TELL THE BIOTECH AND COMPUTER CHIP GUYS TO MOVE OVER THE FOLKS WHO MAKE POTASH FERTILIZER PLUMBING MAINTENANCE PRODUCTS ROOF SHINGLES AND BUG DEFLECTORS ARE COMING TO DINNER IN A SMALL CAPITALIZATION MARKET LONG DOMINATED BY FLASHY GO GO TECHNOLOGY STOCKS THERE ARE SIGNS THAT ECONOMICALLY SENSITIVE CYCLICAL STOCKS ARE TRYING TO GRAB PART OF THE LIMELIGHT THE ECONOMY'S RENEWED VIGOR IS PARTLY RESPONSIBLE FOR HELPING BRING THESE MUNDANE INDUSTRIAL ISSUES MORE INTO FAVOR WITH SMALL CAP INVESTORS ANALYSTS SAY AT THE SAME TIME A GROWING SENSE THAT VALUATIONS IN THE TECHNOLOGY SECTOR HAVE BECOME FROTHY HAS FOCUSED ATTENTION ON THE LOWER PROFILE CYCLICALS THEY ADD AND WHILE SOME PROFESSIONALS HAVE WARNED CYCLICALS TEND TO TAKE IT ON THE CHIN WHEN THE OVERALL STOCK MARKET SKIDS OTHERS POINT OUT THAT THE SECTOR CAN OUTPERFORM LONGER TERM IF THE ECONOMY ENTERS A STAGE OF ADVANCED GROWTH THAT'S PARTICULARLY TRUE OF NIMBLE NICHE PLAYERS IN THE DIVERSE SMALL CAP UNIVERSE THEY SAY QUOTE IF YOU'RE IN A STRONG ECONOMIC ENVIRONMENT WITH INTEREST RATE RISK QUOTE SAYS PETER CANELO CHIEF MARKET STRATEGIST FOR NATWEST SECURITIES QUOTE PRICE EARNINGS RATIOS WILL COME UNDER PRESSURE AND SO YOU'LL WANT TO BE IN CYCLICALS COMPANIES WITH RISING EARNINGS QUOTE WHETHER LARGE OR SMALL SURE THESE STOCKS MAY GO DOWN A LITTLE BIT MORE IN A MARKET CORRECTION BUT THEY COME BACK STRONGER AS THE ECONOMY ENTERS THE LATER STAGES OF EXPANSION HE ADDS AMONG NATWEST'S TOP SMALL CAP PICKS FOR NINETEEN NINETY FOUR ARE GIDDINGS AND LEWIS INCORPORATED A MANUFACTURER OF AUTOMATED MACHINE TOOLS AND POTASH CORPORATION OF SASKATCHEWAN RECENTLY RESTRUCTURED GIDDINGS IS POISED TO BENEFIT FROM A GLOBAL ECONOMIC RECOVERY NATWEST PREDICTS AND IT THINKS POTASH CAN ACHIEVE FIFTEEN PERCENT EARNINGS GROWTH OVER THE NEXT THREE TO FIVE YEARS ON A STRONG CYCLICAL REBOUND IN THE POTASH FERTILIZER MARKET A GENERAL RISE IN COMMODITY FUTURES PRICES SINCE OCTOBER ISN'T LIKELY TO ABATE ANY TIME SOON AND THOSE FIRMER PRICES SHOULD AID OTHER RAW MATERIAL CYCLICAL COMPANIES IN THE SMALL CAP SECTOR ADDS MR. CANELO EVEN ASSUMING WE GET A FIVE PERCENT TO TEN PERCENT CORRECTION THIS YEAR I'M CONVINCED THE BULL MARKET WILL CONTINUE INTO NINETEEN NINETY FIVE AND THAT THE CHARGE WILL BE LED BY A BROAD RANGE OF CYCLICAL ISSUES THOMAS REILLY CHIEF INVESTMENT OFFICER OF PUTNAM INVESTMENT MANAGEMENT'S BASIC VALUE EQUITIES GROUP SAYS HE LIKES THE RECENT BROAD BASED RETREAT IN SHARE PRICES BECAUSE THE MARKET HAD GOTTEN A LITTLE AHEAD OF ITSELF ON THE GROWTH STOCK SIDE HE PREDICTS INVESTORS WILL START LOOKING TO BASIC VALUE SMALL CAP STOCKS THAT HAVE LAGGED AT THE EXPENSE OF MOMENTUM DRIVEN TECHNOLOGY ISSUES BOSTON BASED PUTNAM'S SMALL CAP VALUE FUNDS FAVOR FOR EXAMPLE NCH CORPORATION A SPECIALTY CHEMICAL COMPANY THAT MAKES WATER TREATMENT PRODUCTS PLUMBING MAINTENANCE PRODUCTS AND INSECTICIDES NCH HAS TREMENDOUS FINANCIAL STRENGTH AND STAYING POWER IT'S GOT NO DEBT AND IS A STRONG CASH GENERATOR SAYS BOB D'ALELIO A SMALL CAP VALUE PORTFOLIO MANAGER AT PUTNAM QUOTE THIS IS WHAT I CALL A QUALITY SMALL CAP CYCLICAL WHERE THE RISK IS LOWER IF THE ECONOMY WERE TO SLOW DOWN AND THE REWARD REMAINS IF THE ECONOMY IMPROVES QUOTE HE SAYS THE STOCK TRADING AT AROUND SIXTY THREE DOLLARS A SHARE ON THE NEW YORK STOCK EXCHANGE IS RELATIVELY CHEAP HAVING MOVED OFF ITS RECENT HIGHS ABOVE SEVENTY DOLLARS IN EARLY NINETEEN NINETY THREE MR. D'ALELIO ADDS HE THINKS THE COMPANY CAN LIFT ITS NET INCOME TEN PERCENT TO FIVE DOLLARS A SHARE FOR THE FISCAL YEAR ENDING IN APRIL UP FROM FOUR DOLLARS AND FIFTY THREE CENTS A YEAR EARLIER IN A STRONG ECONOMY IN A YEAR OR TWO YOU COULD SEE NET AT EIGHT DOLLARS A SHARE HE SAYS ONE INDICATOR OF IMPROVING SENTIMENT FOR SMALL CAP CYCLICALS IS A GROWING RAFT OF SUCH ISSUES IN THE INITIAL PUBLIC OFFERING PIPELINE EQUITY ANALYSTS SAY THE RATE OF CYCLICAL STOCK ISSUANCE HAS MORE THAN DOUBLED YEAR TO DATE CYCLICALS COMPRISED TWENTY ONE PERCENT OF THE DEALS THAT WERE PRICED THUS FAR THIS YEAR VERSUS AROUND TWELVE PERCENT FOR THE FIRST QUARTER LAST YEAR SAYS LINDA KILLIAN A PRINCIPAL AT RENAISSANCE CAPITAL CORPORATION IN GREENWICH CONNECTICUT AND THEY ACCOUNT FOR TWENTY EIGHT PERCENT OF THE ISSUES IN THE HOPPER OR MORE THAN DOUBLE LAST YEAR'S FIGURE SHE ADDS MS. KILLIAN RECOMMENDS THAT INVESTORS BE SELECTIVE WHEN CONSIDERING SUCH I. P. O.S IN THE WEEKS AHEAD BASICALLY YOU'RE LOOKING FOR COMPANIES THAT HAVE STRONG MARKET SHARE AND GOOD FUNDAMENTALS RENAISSANCE CAPITAL'S ONLY STRONG RECOMMENDATION AMONG THE COMING CYCLICAL ISSUES IS MARTIN MARIETTA MATERIALS WHICH HAS MAJOR STONE QUARRIES IN THE SOUTHEAST AND MIDWEST WE SEE THE STOCK AS STRONG PLAY ON A TURNAROUND IN RESIDENTIAL AND COMMERCIAL CONSTRUCTION AS WELL AS A BET ON INCREASED STATE AND FEDERAL INFRASTRUCTURE SPENDING THE I. P. O. A SPINOFF OF MARTIN MARIETTA CORPORATION THE BIG AEROSPACE CONCERN ALSO COMES AT A TIME QUOTE WHEN MUCH OF THE MIDWEST'S ROADS AND BRIDGES ARE IN NEED OF REPAIR FROM LAST YEAR'S FLOODING QUOTE MS. KILLIAN ADDS RENAISSANCE ALSO RECOMMENDED DEFLECTA SHIELD COMPANY WHICH WAS PRICED ON JANUARY TWENTIETH AT THIRTEEN DOLLARS AND HAS SINCE CLIMBED TO AROUND SIXTEEN DOLLARS AND FIFTY CENTS THE COMPANY IS THE LARGEST U. S. SUPPLIER OF BUG DEFLECTORS FOR LIGHT TRUCKS IN ITS MOST RECENT FISCAL QUARTER THE COMPANY REPORTED A TWENTY PERCENT INCREASE IN SALES TO TEN POINT EIGHT MILLION DOLLARS WE LIKE THE FACT IT HAS RISING OPERATING MARGINS MS. KILLIAN SAYS AN ADDITIONAL INDICATOR OF RENEWED INTEREST IN SMALL CAP CYCLICALS COMES FROM COMPANY INSIDERS WHILE THERE'S NOTHING YET THAT COULD BE DESCRIBED AS A FIRM TREND THERE HAVE BEEN A HANDFUL OF CASES OF INSIDER BUYING AMONG SMALL CAP CYCLICAL COMPANIES ACCORDING TO C. D. A. SLASH INVESTNET A FORT LAUDERDALE FLORIDA COMPANY THAT TRACKS STOCK TRANSACTIONS INVOLVING A COMPANY'S OWN EXECUTIVES DIRECTORS AND OTHER INSIDERS LINDBERG CORPORATION A COMPANY THAT HEAT TREATS METALS SAW TWO SENIOR INSIDERS SNAP UP A COMBINED FOUR THOUSAND FIVE HUNDRED SHARES AT AN AVERAGE FOUR DOLLARS AND FIFTY CENTS EACH LATE LAST YEAR THE STOCK IS CURRENTLY TRADING AT AROUND FIVE DOLLARS AND TWENTY FIVE CENTS ON THE NASDAQ STOCK MARKET AT ELCOR CORPORATION THREE INSIDERS BOUGHT A TOTAL FOUR THOUSAND ONE HUNDRED EIGHTY SHARES IN NOVEMBER AND DECEMBER AT AN AVERAGE EIGHTEEN DOLLARS AND SEVENTY FIVE CENTS A SHARE THE COMPANY PRODUCES LAMINATED FIBERGLASS ASPHALT SHINGLES RECYCLING EQUIPMENT AND IT PLATES DIESEL ENGINE PARTS THE STOCK CLOSED FRIDAY AT TWENTY THREE POINT ONE TWO FIVE DOLLARS ON THE BIG BOARD SELLING OF SMALL COMPANY STOCKS CONTINUED BUT VOLUME WAS SUBDUED AMID A MAJOR SNOWSTORM IN AN ABBREVIATED SESSION THE NEW YORK STOCK EXCHANGE THE NASDAQ STOCK MARKET AND THE AMERICAN STOCK EXCHANGE ALL CLOSED EARLY AT TWO THIRTY P. M. E. S. T. BECAUSE OF THE EAST COAST STORM BUT MANY MARKET PLAYERS BOWED OUT EARLIER IN DEFERENCE TO THE FROSTY CONDITIONS THE RUSSELL TWO THOUSAND INDEX OF SMALL CAPITALIZATION STOCKS FINISHED ONE POINT TWO FIVE POINTS OR ZERO POINT FOUR SEVEN PERCENT LOWER AT TWO HUNDRED SIXTY TWO POINT EIGHT NINE THE NASDAQ COMPOSITE INDEX FELL TWO POINT OH THREE POINTS OR ZERO POINT TWO SIX PERCENT TO SEVEN HUNDRED EIGHTY ONE POINT THREE NINE DECLINING NASDAQ ISSUES SWAMPED ADVANCERS ONE THOUSAND SIX HUNDRED TWO TO ONE THOUSAND ONE HUNDRED NINETY TWO NASDAQ NATIONAL MARKET VOLUME WAS JUST ONE HUNDRED SEVENTY ONE MILLION EIGHT HUNDRED EIGHTY TWO THOUSAND FIVE HUNDRED SHARES IN THE SHORTENED SESSION WHILE TOTAL VOLUME WAS TWO HUNDRED EIGHT MILLION ONE HUNDRED EIGHTY NINE THOUSAND IN THURSDAY'S FULL LENGTH SESSION NATIONAL MARKET VOLUME STOOD AT TWO HUNDRED EIGHTY FOUR MILLION TWO HUNDRED THIRTY FIVE THOUSAND FOUR HUNDRED SHARES WHILE TOTAL VOLUME REGISTERED THREE HUNDRED THIRTY NINE MILLION TWO HUNDRED NINETY FOUR THOUSAND FOR THE WEEK THE RUSSELL GAINED ONE POINT TWO TWO POINTS OR ZERO POINT FOUR SEVEN PERCENT THE NASDAQ COMPOSITE ADDED FOUR POINT ONE POINTS OR ZERO POINT FIVE THREE PERCENT AND THE DOW INDUSTRIALS CLIMBED TWENTY THREE POINT THREE SIX OR ZERO POINT SIX ZERO PERCENT IN EARNINGS NEWS TIMBERLAND WAS POUNDED AFTER REPORTING FOURTH QUARTER EARNINGS OF SIXTY TWO CENTS A SHARE SHORT OF ANALYSTS' ESTIMATES OF SIXTY SIX CENTS SHARES OF THE HAMPTON N. H. BASED FOOTWEAR AND APPAREL COMPANY PLUMMETED NINE AND SEVEN EIGHTHS OR EIGHTEEN POINT FIVE PERCENT TO FORTY THREE AND ONE HALF ON THE BIG BOARD TIMBERLAND WHICH EARNED FORTY FOUR CENTS IN THE YEAR EARLIER PERIOD ALSO SAID ITS GROSS PROFIT MARGIN FELL TO THIRTY SIX POINT FOUR PERCENT IN THE LATEST QUARTER FROM THIRTY EIGHT POINT ONE PERCENT A YEAR AGO PICTURETEL A DANVERS MASSACHUSETTS DEVELOPER OF VISUAL COMMUNICATIONS SYSTEMS FELL TWO AND ONE QUARTER TO FOURTEEN AND THREE QUARTERS AS GOLDMAN SACHS AND COMPANY SLASHED ITS EARNINGS ESTIMATE ANALYST MARY HENRY CUT HER FOURTH QUARTER ESTIMATE FOR PICTURETEL TO TWELVE CENTS A SHARE FROM NINETEEN CENTS AND HER NINETEEN NINETY FOUR ESTIMATE TO THIRTY CENTS A SHARE FROM ONE DOLLAR AND FIFTEEN CENTS LITTLEFIELD ADAMS PLUNGED THREE TO SIXTEEN AND THREE EIGHTHS ON THE AMEX THE SAN ANTONIO IMPRINTER OF ATHLETIC WEAR SAID IT DECIDED TO RESCIND AN AGREEMENT WITH AMERICARE HEALTH GROUP LITTLEFIELD'S MEDICAL SALES ASSOCIATES SUBSIDIARY HAD SIGNED A CONTRACT IN MARCH GIVING AMERICARE MARKETING RIGHTS TO CERTAIN PRODUCTS IN EXCHANGE FOR EIGHT POINT FIVE MILLION AMERICARE COMMON SHARES AMERICARE IS TWENTY FIVE PERCENT OWNED BY LITTLEFIELD THE COMPANY SAID IT HAS DECIDED TO TENDER ITS AMERICARE STOCK TO AN ESCROW AGENT PENDING DETERMINATION OF THE TERMS FOR ITS DISASSOCIATION WITH AMERICARE AS A RESULT OF THIS DECISION LITTLEFIELD SAID ITS ASSETS FOR THE FIRST THREE QUARTERS OF NINETEEN NINETY THREE WILL BE REDUCED BY FIVE POINT THREE MILLION DOLLARS THE CURRENT VALUE OF ITS INTEREST IN AMERICARE ON THE POLITICAL TRAIL TOWARD WHAT COULD BECOME EASTERN EUROPE'S NEXT WAR IT'S A EUPHORIC MOMENT WAVING A BUNCH OF CARNATIONS UNDER THE NEW BLUE WHITE AND RED FLAG YURI MESHKOV CELEBRATES HIS INAUGURATION AS THE FIRST PRESIDENT OF CRIMEA CURRENTLY A QUASI AUTONOMOUS REPUBLIC WITHIN UKRAINE THE CRIMEAN PARLIAMENTARY CHAMBER IS PACKED THE LEAN WHITE HAIRED MR. MESHKOV GETS FOUR STANDING OVATIONS BEFORE HE EVEN STARTS TO SPEAK HE VOWS TO LEAD CRIMEA TO INDEPENDENCE AND HIS PLATFORM INCLUDED A PROMISE TO HOLD A REFERENDUM ON THE ISSUE QUOTE I WOULD LIKE TO CONSIDER MY INAUGURATION THE BEGINNING OF THE PROCESS OF CRIMEA JOINING THE UNITED NATIONS QUOTE HE SAYS SUCH A BREAK FROM UKRAINE WOULD FREE CRIMEA TO ACHIEVE MR. MESHKOV'S FINAL GOAL IN THAT PROCESS UNITY WITH RUSSIA IN UKRAINE'S CAPITAL OF KIEV THE REACTION IS THREATS WARNINGS AND A BAN ON CRIMEA'S HOLDING THE PROMISED REFERENDUM HOWEVER CRIMEA CARES LESS AND LESS WHAT KIEV DECREES UKRAINE'S UNREFORMED ECONOMY IS IN COLLAPSE AND CRIMEANS ARE DESPERATE TO LINK UP WITH THE RELATIVELY RICHER RUSSIA CRIMEA'S FRICTION WITH KIEV DEMONSTRATES THE POLITICAL AND ECONOMIC FAULT LINES OPENING ACROSS MANY OF THE NEWLY INDEPENDENT STATES SPUN OFF FROM THE SOVIET EMPIRE THIS ROCKY PENINSULA IN THE BLACK SEA IS ONE OF SUCH PLACES AS KAZAKHSTAN AND THE CAUCASUS WHERE THE SOVIETS REDREW BORDERS AND SHUFFLED POPULATIONS TO FRAGMENT DISSENT WHEN THE SOVIET UNION SHATTERED IN NINETEEN NINETY ONE INTO FIFTEEN INDEPENDENT NATIONS THE RESULT WAS THAT MANY ETHNIC RUSSIANS WERE MAROONED IN FOREIGN STATES SUCH AS UKRAINE THE NEED TO PROTECT THEM GIVES RUSSIA THE RIGHT TO INTERVENE IN THE FORMER SOVIET STATES IT CALLS THE NEAR ABROAD SAY RUSSIA'S DEFENSE MINISTER PAVEL GRACHEV AND FOREIGN MINISTER ANDREI KOZYREV RUSSIAN VOTERS IN DECEMBER GAVE HEFTY SUPPORT TO THE ULTRA NATIONALIST HEAD OF THE MISNAMED LIBERAL DEMOCRATIC PARTY VLADIMIR ZHIRINOVSKY WHO HAS PROMISED TO ASSEMBLE UNDER RUSSIAN RULE AN EMPIRE BIGGER THAN EVEN THE SOVIETS ACQUIRED CRIMEA IS A NATURAL TARGET FOR RUSSIA'S ACQUISITIVE ITCH SOME SEVENTY PERCENT OF CRIMEA'S TWO POINT FIVE MILLION PEOPLE ARE ETHNIC RUSSIANS INDEED CRIMEA WAS PART OF RUSSIA FOR THE BETTER PART OF TWO CENTURIES AFTER CATHERINE THE GREAT PRIED IT FROM THE TURKS IN ONE THOUSAND SEVEN HUNDRED EIGHTY THREE NIKITA KHRUSHCHEV HANDED CRIMEA OVER TO UKRAINE IN NINETEEN FIFTY FOUR IN A TOKEN OF RUSSIAN UKRAINIAN FRIENDSHIP A RATHER MEANINGLESS GIFT IN A SOVIET EMPIRE CONTROLLED BY MOSCOW BUT IN NINETEEN NINETY ONE CRIMEAN VOTERS APPROVED BY FIFTY FIVE PERCENT UKRAINE'S EXIT FROM THE SOVIET UNION HOPING FREE UKRAINIAN RULE MIGHT DELIVER THEM A BETTER LIFE SINCE THEN INFLATION FED BY KIEV'S UNREFORMED BUREAUCRACY HAS CLIMBED TO ABOUT NINETY PERCENT A MONTH MORE THAN THREE TIMES WORSE THAN IN RUSSIA FUEL ONCE LAVISHED ON UKRAINE BY SOVIET CENTRAL PLANNERS IS NOW COSTLY AND SCARCE PEOPLE PAID IN BUNDLES OF FAST DEVALUING UKRAINIAN COUPONS YEARN FOR RUBLES AND MANY SEE RUSSIA FOR ALL ITS TROUBLES AS THE PROMISED LAND SO IN A HEAVY TURNOUT ON JANUARY THIRTIETH CRIMEAN VOTERS DELIVERED A SEVENTY THREE PERCENT MANDATE TO MR. MESHKOV IT WAS SEEN HERE AS A PREVIEW OF SUPPORT FOR HIS PROMISED REFERENDUM WHICH MIGHT BE HELD ON MARCH TWENTY SEVENTH THE SAME DATE AS UKRAINIAN AND CRIMEAN PARLIAMENTARY ELECTIONS CRIMEA'S DEFIANCE IS A LIT FUSE AS KIEV POLITICIANS STRUGGLE TO HOLD TOGETHER THEIR BANKRUPT AND INCREASINGLY RESTIVE NATION UKRAINE IS POLARIZED BETWEEN NATIONALISTS CONCENTRATED HEAVILY IN THE WEST AND ETHNIC RUSSIANS CONCENTRATED IN THE EAST LAST FALL UKRAINE'S TRANSCARPATHIAN REGION NEAR THE HUNGARIAN AND SLOVAKIAN BORDERS MADE A FAILED BID FOR INDEPENDENCE INCITING NATIONALIST MILITIA TO START DRILLING IN THE AREA THE EASTERN COAL MINING CENTER OF DONETSK NEAR THE RUSSIAN BORDER HAS BEEN DEMANDING ECONOMIC AUTONOMY IN THIS CLIMATE SECESSION BY CRIMEA COULD TRIGGER CIVIL WAR AND RUSSIA COULD PROVE TO BE THE WILD CARD IN WASHINGTON CENTRAL INTELLIGENCE AGENCY DIRECTOR JAMES WOOLSEY WARNED LAST MONTH THAT UKRAINE WITH ITS FIFTY TWO MILLION PEOPLE AND ONE THOUSAND EIGHT HUNDRED NUCLEAR WARHEADS HAS REACHED A STAGE OF POTENTIAL CRISIS SECESSIONIST FORCES WOULD PROBABLY APPEAL TO MOSCOW FOR SUPPORT AND RUSSIA MIGHT JOIN THE FRAY HE TOLD THE SENATE SELECT INTELLIGENCE COMMITTEE WHEN THE SOVIET UNION FELL THE WEST HOPED RUSSIA THE LINCHPIN STATE WOULD FOCUS ON INTERNAL REFORM AND LET ITS NEIGHBORS ALONE INSTEAD WITH REFORM ON THE ROPES RUSSIA HAS BEEN TURNING TO ITS OLD INTERFERING WAYS FIGHTING TO PROP UP AN ANTI MUSLIM COMMUNIST REGIME IN TAJIKISTAN DABBLING IN CONFLICTS IN GEORGIA AND AZERBAIJAN AND SEEKING ECONOMIC SUPERVISION OVER COUNTRIES SUCH AS BELARUS AND UZBEKISTAN LONG A FAVORITE SEASIDE RETREAT FOR THE RUSSIAN ELITE CRIMEA IS A PARTICULARLY TEMPTING TARGET FOR INTERVENTION CONTROL OF THE PENINSULA BRINGS CONTROL OF SEVASTOPOL HOME PORT OF THE FORMER SOVIET BLACK SEA FLEET AND ACCESS TO THE MEDITERRANEAN SEA UKRAINE AND RUSSIA HAVE BEEN SQUABBLING OVER RIGHTS TO THE FLEET WITH ITS ROUGHLY THREE HUNDRED WARSHIPS SEVENTY THOUSAND PERSONNEL AND EXTENSIVE SHORE FACILITIES HALF A DOZEN SUMMITS BETWEEN PRESIDENTS LEONID KRAVCHUK OF UKRAINE AND BORIS YELTSIN OF RUSSIA HAVE FAILED TO RESOLVE THE DISPUTE THE FLEET HAS BEEN LEFT RUSTING IN UNDERSUPPLIED AND UNHAPPY LIMBO MEANWHILE RUSSIAN SUPPORT WAS AMPLY DISPLAYED DURING THE CRIMEA'S PRESIDENTIAL ELECTIONS IN JANUARY DURING WHICH FIVE OF THE SIX CANDIDATES CAMPAIGNED FOR CRIMEA TO LEAVE UKRAINE AND JOIN RUSSIA WHEN MR. MESHKOV WON HE WAS INUNDATED WITH MESSAGES OF CONGRATULATIONS AND SUPPORT FROM SUCH RUSSIAN DIGNITARIES AS KONSTANTIN ZATULIN CHAIRMAN IN THE RUSSIAN PARLIAMENT'S LOWER HOUSE OF THE COMMITTEE ON AFFAIRS OF THE COMMONWEALTH OF INDEPENDENT STATES AND LINKS WITH COMPATRIOTS MR. ZATULIN'S COMMITTEE PLANS TO SEND A DELEGATION TO CRIMEA LATER THIS MONTH MR. MESHKOV A GENTLE SPEAKER WITH A SOFT HANDSHAKE HAS LONG BEEN MORE CLOSELY TIED TO MOSCOW THAN TO KIEV BORN WHILE HIS PARENTS WERE MOVING FROM RUSSIA'S DON REGION TO CRIMEA THE FORTY NINE YEAR OLD MR. MESHKOV ONCE SERVED AS A SOVIET BORDER GUARD IN ARMENIA I WAS THE BEST AUTOMATIC WEAPONS MARKSMAN IN THE K. G. B. HE CLAIMS HE LATER STUDIED LAW AT MOSCOW STATE UNIVERSITY AND ROSE THROUGH THE COMMUNIST PARTY AS AN INVESTIGATOR IN THE CRIMEAN PROSECUTOR'S OFFICE IN NINETEEN NINETY HE SAYS HE LEFT THE COMMUNIST PARTY IT ISN'T CLEAR HOWEVER THAT MR. MESHKOV HAS LEFT BEHIND HIS OLD TIES TO RUSSIAN MILITARY AND SECURITY NETWORKS HE RAN HIS PRESIDENTIAL CAMPAIGN FROM THE CLUBHOUSE OF THE LOCAL SOCIETY OF AFGHANISTAN VETERANS THOUGH HE NEVER SERVED IN AFGHANISTAN THE SOCIETY'S LEADER VLADIMIR KLICHNIKOV EXPLAINS THAT SOME OF HIS ORGANIZATION'S MAIN ASSETS ARE ITS CROSS BORDER CONNECTIONS WITH RUSSIA ANOTHER OF THE SOCIETY'S ORIGINAL FINANCIAL BACKERS IS RUSSIAN BORN VALERY AWERKIN WHO HELPED FOUND MR. MESHKOV'S REPUBLICAN PARTY OF CRIMEA MR. AWERKIN RUNS A BUSINESS CONGLOMERATE BASED IN THE CRIMEAN CAPITAL SIMFEROPOL CALLED I M. P. E. X. FIFTY FIVE IT HAS BEEN UNDER INVESTIGATION BY KIEV AS AN ALLEGED CHANNEL FOR RUSSIAN MONEY INTO CRIMEAN POLITICS MR. AWERKIN SAYS HIS COMPANY DOES BUSINESS WITH RUSSIA AND EXPLAINS THAT FOR CRIMEAN ENTREPRENEURS REUNION WITH RUSSIA IS NECESSARY TO PROVIDE A MARKET BECAUSE NOBODY IS GOING TO BUY OUR PRODUCTS IN THE WEST MR. AWERKIN ALSO BELIEVES THAT RUSSIA IS THE RIGHTFUL HEIR TO ALL FORMER SOVIET TERRITORY QUOTE OUR IDEA IS THAT THE STATE OF RUSSIA WHICH WAS CALLED THE SOVIET UNION FOR SEVENTY YEARS WILL BE RE CREATED QUOTE HE NOTES THAT TRYING TO REUNITE WITH RUSSIA HAS ITS RISKS CHERNOBYL AND YUGOSLAVIA WILL BE CHILD'S PLAY COMPARED TO THE POTENTIAL CONFLICT IN CRIMEA HE SAYS CALMLY NONETHELESS IT'S IMPOSSIBLE TO LEAVE THINGS AS THEY ARE BUT MANY OF CRIMEA'S PRO RUSSIAN LEADERS SEEM SURE THEY ARE IMMUNE TO A BALKAN TYPE CONFLICT WAR CAN'T HAPPEN HERE SAYS THE PRESIDENT OF THE RUSSIAN SOCIETY OF CRIMEA ANATOLY LOS SURROUNDED BY A CROWD OF PRO RUSSIAN REVELERS IN FRONT OF PARLIAMENT ON THE DAY MR. MESHKOV'S VICTORY WAS ANNOUNCED THE BEARDED MR. LOS EXPLAINED THAT THIS IS NOT YUGOSLAVIA BECAUSE PEOPLE ARE SMARTER HERE SOME FOREIGN OBSERVERS NOTE HOPEFULLY THAT MR. MESHKOV HAS BEEN WATERING DOWN HIS RHETORIC SINCE THE ELECTIONS PLAYING UP HOPES OF ECONOMIC UNION WITH RUSSIA AND DUCKING QUESTIONS ABOUT HIS PROMISED REFERENDUM HE'S MELLOWING OUT SAYS IAN BRZEZINSKI A CONSULTANT TO THE UKRAINIAN PARLIAMENT'S COUNCIL OF ADVISERS BUT MR. MESHKOV FACES INTENSE PRESSURE FROM VOTERS AND PRO RUSSIAN POLITICIANS TO KEEP HIS WORD QUOTE NO COMPROMISE WITH KRAVCHUK AND UKRAINE QUOTE SAYS THE RUSSIAN SOCIETY'S MR. LOS ANOTHER DEPUTY TO CRIMEA'S PARLIAMENT ALEKSANDR KRUGLOV SAYS THAT IN THE MARCH TWENTY SEVENTH ELECTIONS THE MAIN PURPOSE IS TO BRING AS MANY RUSSIAN PATRIOTS AS POSSIBLE TO THE CRIMEAN PARLIAMENT TO MAKE MESHKOV FULFILL ALL HIS PROGRAMS THE RUSSIANBORN MR. KRUGLOV BELIEVES THAT RUSSIAN TROOPS SHOULD BE SENT TO SEVASTOPOL IF NECESSARY TO RECLAIM CRIMEA HE SAYS IT WOULD BE WORTH THE RISK OF CONFLICT BECAUSE WE WILL SUFFER LESS FROM WAR THAN UKRAINE IN PRACTICE RUSSIAN ARMED FORCES ARE MASSIVELY PRESENT IN SEVASTOPOL RIGHT NOW UNDER THE FLAG OF THE OLD SOVIET BLACK SEA FLEET ABOARD ONE SUBMARINE SUPPORT SHIP MOORED ALONG A SEVASTOPOL WHARF CAPTAIN FIRST CLASS VLADIMIR VASUKOV WARNS WE ARE ARMED TO THE TEETH HE THEN SORTS OUT HIS LOYALTIES I'M RUSSIAN I LIVE IN UKRAINE I SERVE THE BLACK SEA FLEET QUOTE HE HITS THE BOTTOM LINE I'M REGISTERED AS A RUSSIAN OFFICER AND RUSSIA PAYS ME KIEV'S WEAKENING HOLD OVER CRIMEA IS UNDERSCORED BY THE FATE OF MR. MESHKOV'S RIVAL IN THE JANUARY THIRTIETH TWO MAN PRESIDENTIAL RUNOFF ELECTION PRO UKRAINIAN MYKOLA BAGROV A VETERAN UKRAINIAN APPARATCHIK FROM KIEV AND SPEAKER OF THE CRIMEAN PARLIAMENT UNTIL HE RESIGNED LAST WEEK MR. BAGROV WAS THE ARCHITECT LAST FALL OF THE LEGISLATION THAT CREATED A PRESIDENCY IN CRIMEA HIS AIM IN SETTING UP THE OFFICE WAS TO APPEASE CRIMEANS DEMANDING AUTONOMY BY TURNING THE PENINSULA INTO A SOMEWHAT MORE INDEPENDENT PRO KIEV ENCLAVE RUN BY HIMSELF BUT HE LOST MR. BAGROV'S PROGRAM GAINED HIM ONLY TWENTY THREE PERCENT OF THE FINAL VOTE COMING MAINLY FROM THE FRIGHTENED MINORITIES OF ETHNIC UKRAINIANS AND TATARS THE TATARS ARE INDIGENOUS TO CRIMEA AND THEIR LEADER MUSTAFA CEMILOGLU IS MOST WORRIED BY THE PRO RUSSIAN MOVEMENT DEMOCRACY IN RUSSIA USUALLY STOPS WHERE NATIONALISM STARTS SAYS THE WIZENED FIFTY YEAR OLD HIS TATAR PEOPLE WHO WOULD LIKE THEIR OWN SEMI AUTONOMOUS STATE IN CRIMEA RELUCTANTLY BACKED THE PRO KIEV MR. BAGROV THEY FEAR A REPETITION OF THEIR PAST BITTER EXPERIENCE OF MOSCOW RULE IN THE NINETEEN FORTIES STALIN DEPORTED CRIMEA'S ENTIRE TATAR POPULATION OF ABOUT FOUR HUNDRED THOUSAND TO CENTRAL ASIA SOME TWO HUNDRED FIFTY THOUSAND TATARS RECENTLY HAVE RETURNED TO CRIMEA MR. CEMILOGLU AMONG THEM SPEAKING FROM HIS SMALL FAMILY HOME IN THE CRIMEAN TOWN OF BAKHCHISARAI MR. CEMILOGLU SAYS THAT UKRAINE MUST FIGHT FOR CRIMEA IF UKRAINE WANTS TO REMAIN AN INDEPENDENT STATE ETHNIC UKRAINIANS IN CRIMEA SHARE HIS ANXIETIES THE SITUATION IS VERY SIMILAR TO BEFORE WORLD WAR TWO WHEN THE WEST COULDN'T STOP HITLER SAYS YURI ILYIN CHAIRMAN OF THE SEVASTOPOL BRANCH OF A UKRAINIAN CULTURAL SOCIETY AN OCEANOGRAPHER WORKING IN AN ICY FUEL STARVED RESEARCH INSTITUTE BY THE SEVASTOPOL HARBOR MR. ILYIN SHOWS OFF THE SUNSET VIEW OF HIS WEAPON FILLED CITY AND SUMS UP QUOTE I AM AFRAID QUOTE THE DOLLAR FELL SHARPLY AGAINST THE YEN FOLLOWING THE COLLAPSE OF THE U. S. JAPAN TRADE SUMMIT BUT ANALYSTS AND TRADERS SAID THE U. S. CURRENCY'S NEW TRADING RANGE WILL BE DETERMINED BY HOW WASHINGTON RESPONDS TO THE TRADE TALKS' FAILURE NOT BY THE FAILURE ITSELF IF THE CLINTON ADMINISTRATION TARGETS CURRENCY RATES AS A WAY TO REDUCE THE U. S. TRADE DEFICIT WITH JAPAN AN ACTION THAT ADMINISTRATION OFFICIALS SAID WASN'T PLANNED THE DOLLAR COULD DROP TOWARD ITS HISTORIC LOWS AGAINST THE YEN THE MARKET WATCHERS SAID BUT IF THE ADMINISTRATION PRESSURES JAPAN THROUGH THE USE OF TRADE SANCTIONS THUS SIGNALING THE MARKET THAT AN ATTACK ON EXCHANGE RATES WON'T BE LAUNCHED THE U. S. CURRENCY COULD START RECOVERING TOWARD THE ONE HUNDRED TEN YEN LEVEL INDEED THE U. S. IS POISED TO LAUNCH TRADE SANCTION PROCEEDINGS TOMORROW AGAINST JAPAN OVER CELLULAR TELEPHONES AT A NEWS CONFERENCE FRIDAY AFTERNOON IN WASHINGTON PRESIDENT CLINTON AND JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA SAID THEY HAD FAILED TO RESOLVE ANY OF THE MAJOR IMPASSES TO A TRADE ACCORD BETWEEN THE TWO NATIONS SOON AFTERWARD THE DOLLAR FELL THROUGH A KEY TECHNICAL SUPPORT LEVEL AT ONE HUNDRED SEVEN YEN TO AN INTRADAY LOW OF ONE HUNDRED SIX POINT EIGHT OH YEN A LEVEL LAST SEEN IN NOVEMBER THAT WAS WELL BELOW THE DOLLAR'S ONE HUNDRED EIGHT POINT ONE FIVE YEN LEVEL LATE THURSDAY IN NEW YORK BY LATE FRIDAY THE DOLLAR WAS QUOTED AT ONE HUNDRED SIX POINT EIGHT FIVE YEN ONE POINT TWO PERCENT BELOW THE DAY EARLIER LEVEL THE DOLLAR WEAKENED FURTHER IN ASIAN PACIFIC TRADING MONDAY AND REACHED AN INTRADAY LOW OF ONE HUNDRED SIX POINT OH SEVEN YEN AT MIDMORNING IN TOKYO IT STOOD AT ONE HUNDRED SIX POINT TWO FIVE YEN AND AT ONE POINT SEVEN FIVE TWO OH MARKS FOLLOWING THE CLINTON HOSOKAWA NEWS CONFERENCE ON FRIDAY PARTICIPANTS IN THE FOREIGN EXCHANGE MARKET SOLD DOLLARS FOR YEN BETTING THAT THE U. S. WILL RESUME EFFORTS TO TALK UP THE JAPANESE CURRENCY WITH THE DOLLAR FALLING BELOW THE SUPPORT LEVEL ON FRIDAY THESE SELLERS REASONED U. S. STATEMENTS IN SUPPORT OF THE JAPANESE CURRENCY COULD SEND THE DOLLAR TOWARD THE ONE HUNDRED FIVE POINT FIVE OH YEN LEVEL AND POSSIBLY BELOW THAT MANY CURRENCY WATCHERS BELIEVE THE U. S. WILL AGAIN CALL PUBLICLY FOR A STRONGER YEN AS A WAY OF CHOPPING AWAY AT JAPAN'S HUGE TRADE SURPLUS AS THE YEN RISES EXPORTS FROM JAPAN BECOME MORE EXPENSIVE IN TERMS OF OTHER CURRENCIES WHILE IMPORTS INTO JAPAN BECOME LESS EXPENSIVE IN TERMS OF YEN IN WASHINGTON HOWEVER CLINTON ECONOMIC OFFICIALS SAID THEY WEREN'T PLANNING A BROAD EFFORT TO DRIVE UP THE YEN AGAINST THE DOLLAR THE GLOBAL FLOW OF FUNDS IS SO VAST THESE OFFICIALS SAID THAT THE U. S. GOVERNMENT CAN'T UNILATERALLY PUSH THE YEN IN ANY DIRECTION FOR A SUSTAINED PERIOD IN THE FOREIGN EXCHANGE MARKET TOO NOT EVERYBODY WAS EXPECTING THE WHITE HOUSE TO TRY TO TALK THE YEN HIGHER QUOTE TALKING THE YEN UP AT THIS POINT WOULD JUST PROLONG THE RECESSION IN JAPAN QUOTE SAYS EARL JOHNSON VICE PRESIDENT FOREIGN EXCHANGE TRADING AT HARRIS TRUST AND SAVINGS BANK IN CHICAGO A WEAK JAPANESE ECONOMY WOULDN'T HELP NARROW THE BILATERAL TRADE GAP THE REASONING GOES BECAUSE IT CURBS THE JAPANESE APPETITE FOR IMPORTS ON THE OTHER HAND SHOULD THE U. S. IMPOSE TRADE SANCTIONS AGAINST JAPAN THE DOLLAR COULD BENEFIT THE MARKET PARTICIPANTS SAY IN A BEST CASE SCENARIO IN THE VIEW OF PEOPLE FAVORING THIS IDEA SANCTIONS COULD EVEN PUSH THE DOLLAR BACK TOWARD THE ONE HUNDRED TEN YEN LEVEL BECAUSE THEY WOULD DIVERT THE ADMINISTRATION AWAY FROM EXCHANGE RATE POLICY AGAINST THE GERMAN CURRENCY THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FIVE FOUR THREE MARKS LATE FRIDAY IN NEW YORK UP A BIT FROM ONE POINT SEVEN FIVE THREE THREE MARKS LATE THURSDAY THE POVERTY AND RAGE OF MARGINALIZED INDIANS IN MEXICO IS A SYMPTOM OF A LARGER AND LONG SIMMERING LATIN DISEASE RADICALLY UNEQUAL DISTRIBUTION OF INCOME QUOTE LATIN AMERICA HAS HAD AN EMBARRASSINGLY LONG TRADITION OF POVERTY AND POOR INCOME DISTRIBUTION QUOTE SAYS SEBASTIAN EDWARDS THE WORLD BANK'S CHIEF ECONOMIST FOR THE REGION BETWEEN NINETEEN SIXTY AND NINETEEN EIGHTY LATIN AMERICA WAS THE ONLY PART OF THE WORLD WHOSE INCOME DISTRIBUTION BECAME MORE UNEQUAL THEN FROM NINETEEN EIGHTY TO NINETEEN NINETY THE GAP BETWEEN THE TOP TWENTY PERCENT AND THE BOTTOM TWENTY PERCENT WIDENED SLIGHTLY MORE THE IMPLICATIONS ARE TROUBLING FOR A PART OF THE WORLD THAT'S INCREASINGLY SEEN AS AN ECONOMIC SIZZLER WITH STOCK MARKETS RISING FIFTY SIX PERCENT LAST YEAR AS THE MEXICAN REBEL UPRISING DEMONSTRATES THERE ARE LARGE SEGMENTS OF LATIN SOCIETY THAT HAVEN'T GAINED ANYTHING FROM ECONOMIC REFORMS THAT THE REST OF THE WORLD IS APPLAUDING THAT MAKES THE REFORMS VULNERABLE TO POLITICAL CROSS CURRENTS MOREOVER WHEN LARGE SWATHES OF SOCIETY LACK BUYING POWER THE PROSPECTS FOR CONTINUED GROWTH ARE UNDERCUT AS IN MANY OTHER ASPECTS OF ECONOMIC REFORM THE EAST ASIANS PROVIDE A USEFUL MODEL A WORLD BANK ANALYSIS OF GROWTH RATES AND INCOME DISTRIBUTION SHOWS THE EAST ASIANS WITH HIGH RANKINGS ON BOTH THE LATINS UNTIL RECENTLY HAVE SHOWN COMPARATIVELY LOW GROWTH RATES AND WIDER DISPARITIES IN WEALTH IN THE MID NINETEEN EIGHTIES MALAYSIA AND BRAZIL SHOWED COMPARABLE MEDIAN INCOME LEVELS BUT THE BOTTOM TWENTY PERCENT OF THE POPULATION IN MALAYSIA SHOWED A PER CAPITA ANNUAL INCOME NEARLY TWICE THAT OF BRAZIL RICHARD SABOT ECONOMICS PROFESSOR AT WILLIAMS COLLEGE ARGUES THAT ASIAN GOVERNMENTS SAW THE ALLEVIATION OF POVERTY AS A WAY TO BLUNT THE APPEAL OF COMMUNIST MOVEMENTS IN THE NINETEEN SIXTIES THE ELITES CAME TO BELIEVE THAT THEIR FUTURE WELL BEING ECONOMICALLY AND POLITICALLY DEPENDED ON THE WELL BEING OF THE POOR HE SAYS IN CONTRAST LATIN AMERICAN LEADERS USUALLY OPTED TO CRUSH COMMUNIST LEANING INSURGENCIES MILITARILY WITHOUT BETTERING THE LOT OF THE POOR ONE WAY GOVERNMENTS CAN SHOW SUPPORT FOR THE BOTTOM RUNGS OF SOCIETY AS WELL AS CREATE THE BASIS FOR FUTURE ECONOMIC IMPROVEMENT IS TO PROVIDE BASIC EDUCATION FOR THE ENTIRE POPULATION BUT ACCORDING TO AN ANALYSIS BY MR. SABOT VENEZUELA WAS COMMITTING ONLY TWENTY PERCENT OF ITS EDUCATION BUDGET TO PRIMARY EDUCATION IN THE LATE NINETEEN EIGHTIES COMPARED WITH SEVENTY EIGHT PERCENT IN KOREA OFTEN LATIN GOVERNMENTS WILL SUBSIDIZE UNIVERSITY EDUCATION BENEFITING JUST THE CHILDREN OF THE WEALTHIER SEGMENTS OF SOCIETY ONE BRIGHT SPOT IN THIS GENERALLY DISMAL PICTURE IS CHILE CONSIDERED THE STRONGEST LATIN REFORMER CURRENTLY ALONGSIDE ANNUAL ECONOMIC GROWTH OF NEARLY SEVEN PERCENT CHILE HAS LIFTED SOME ONE POINT THREE MILLION OF ITS CITIZENS OUT OF POVERTY IN THE PAST FOUR YEARS AND ALONG WITH PRIVATIZATION AND PRICE LIBERALIZATION CHILE HAS PUSHED HEALTH AND HOUSING PROGRAMS FOR THE POOR IT'S TIME THE WORLD BANK EXPLICITLY TREATED ENLIGHTENED INCOME DISTRIBUTION TACTICS AS ONE OF THE CONDITIONS FOR CERTAIN CONCESSIONAL LOANS IT WOULD BE CONSISTENT WITH THE INSTITUTION'S BROADER EMPHASIS ON SUSTAINABLE DEVELOPMENT IN THE PAST TALK OF BETTER INCOME DISTRIBUTION CARRIED CONNOTATIONS OF SOCIALIST SCHEMES THAT WERE INFLATIONARY AND PUNITIVE TO INVESTORS BUT PROVIDING BASIC EDUCATION SANITATION AND HEALTH SERVICES SHOULDN'T BE VIEWED AS A SOCIALIST SUBTERFUGE IT'S BASIC TO ECONOMIC REFORM LAND REFORM IS TRICKIER THE ASIANS TURNED THOUSANDS OF PEASANTS INTO SMALL FARMERS BY REDISTRIBUTING LAND SEIZED BY JAPAN DURING WORLD WAR TWO LAND OWNERSHIP IN THE LATIN COUNTRIES NEVER WENT THROUGH SUCH AN UPHEAVAL LAND REFORM HAS BEEN TALKED ABOUT PERENNIALLY BUT SELDOM CARRIED OUT IN MANY AREAS POOR USUALLY INDIAN PEASANTS LIKE THOSE IN CHIAPAS HAVE BEEN PUSHED INTO INFERTILE HIGHLANDS THAT CAN'T SUPPORT THEM THEIR ECONOMIC OPTIONS ARE LIMITED THE QUESTION OF LAND REFORM IN LATIN AMERICA IS EXPLOSIVE POLITICALLY THE WORLD BANK AND THE OTHER INTERNATIONAL INSTITUTIONS HAVE STEERED CLEAR OF THE ISSUE AND REMAIN HESITANT TO PUSH CHANGES THAT MAKES IT MORE IMPORTANT THAT THE INSTITUTIONS DELIVER A FORCEFUL MESSAGE ALONG WITH FINANCIAL HELP WHEN IT COMES TO EDUCATION AND HEALTH THE WORLD BANK'S MR. EDWARDS SAYS THAT FUNDS FOR THE SOCIAL PROGRAM IN LATIN AMERICA WILL INCREASE THIS INCLUDES PRIMARY EDUCATION HEALTH NUTRITION AND SANITATION HE ADDS THAT THE BANK IS ALSO DETERMINED TO MAKE SURE THAT THE FUNDS ACTUALLY GET THROUGH TO THE INTENDED RECIPIENTS AND NOT LEAK THROUGH TO THE MIDDLE AND UPPER CLASSES THE U. S. IS POISED TO LAUNCH PROCEEDINGS TO IMPOSE TRADE SANCTIONS AGAINST JAPAN INVOLVING CELLULAR TELEPHONES THE MOVE TOWARD SANCTIONS WHICH FOLLOWS THE COLLAPSE OF THE CLINTON HOSOKAWA TRADE SUMMIT IS PART OF A BROAD EFFORT TO INCREASE PRESSURE ON TOKYO TO INITIATE NEW NEGOTIATIONS AND AGREE TO THE U. S. DEMAND FOR ESTABLISHING NUMERICAL IMPORT GOALS TOKYO STOCKS FELL TWO POINT SIX PERCENT IN MONDAY MORNING'S SESSION REFLECTING THE FAILED TALKS AND A SHARPLY STRONGER YEN ANALYSTS SAY THE DOLLAR'S TRADING RANGE AGAINST THE YEN WILL HINGE ON WASHINGTON'S TRADE STRATEGY NEARLY ALL SILICONE BREAST IMPLANT COMPANIES IN THE U. S. INCLUDING DOW CORNING BRISTOL MYERS AND BAXTER AGREED TO FUND A FOUR BILLION DOLLAR LIABILITY SETTLEMENT PLAN PRACTICALLY ASSURING THE WORLD'S BIGGEST PRODUCT LIABILITY PACT WILL BE OFFERED FOR COURT APPROVAL Q. V. C. RULED OUT CHANGING ITS TEN BILLION DOLLAR OFFER FOR PARAMOUNT INCREASING THE ODDS THAT PARAMOUNT SHAREHOLDERS WILL CHOOSE A RIVAL OFFER FROM VIACOM BY THE DEADLINE AT MIDNIGHT TONIGHT CONSUMER SPENDING FELL ZERO POINT FIVE PERCENT IN JANUARY AND A CONSUMER SENTIMENT INDEX ALSO SLIPPED MANY ANALYSTS POINT TO JANUARY'S RECORD COLD WEATHER AS THE MAIN REASON FOR THE DROP IN SPENDING SEPARATELY PRODUCER PRICES OF FINISHED GOODS CLIMBED ZERO POINT TWO PERCENT LAST MONTH ROGERS COMMUNICATIONS LAUNCHED ITS LONG AWAITED BID TO BUY MACLEAN HUNTER OFFERING TWO POINT ZERO EIGHT BILLION DOLLARS FOR THE SHARES THAT IT DOESN'T ALREADY OWN SEGA CAPTURED SIXTY THREE PERCENT OF THE MOST CRUCIAL SEGMENT OF THE U. S. MARKET FOR VIDEO GAME PLAYERS DURING THE HOLIDAY SEASON AS NINTENDO'S SLIDE ACCELERATED FALLING TO A THIRTY SEVEN PERCENT MARKET SHARE THE S. E. C. IS REVIEWING THE FEE REQUEST BY PLAINTIFFS' LAWYERS IN A NINETY POINT SEVEN MILLION DOLLAR SETTLEMENT BETWEEN ONE HUNDRED FIFTEEN THOUSAND INVESTORS AND PRUDENTIAL SECURITIES AS THE AGENCY SEEKS TO ADDRESS CONCERNS ABOUT POSSIBLE CLASS ACTION ABUSES MERCK IS SHIFTING ITS STRATEGY TO EMPHASIZE MARKET SHARE RATHER THAN PROFIT MARGINS AND THE NINETEEN NINETY THREE PURCHASE OF MEDCO WILL ERODE THE DRUG CONCERN'S THIRTY FIVE PERCENT MARGIN AN EXECUTIVE SAID CHRYSLER PLANS TO ANNOUNCE A RECALL OF ITS NINETEEN NINETY FOUR L. H. AND L. H. S. SEDANS TO REPAIR FAULTY ELECTRICAL WIRES THE FIFTH CHRYSLER RECALL IN THE LAST FEW WEEKS THE BABY BELLS HANDLE OVER NINETY FIVE PERCENT OF THE NATION'S PHONE CALLS AND THEIR LOCAL MONOPOLIES WILL LIKELY AVOID A SERIOUS THREAT FOR AT LEAST A DECADE SAYS A STUDY SPONSORED BY A. T. AND T. AND M. C. I. C. B. S. STRUCK A FIVE YEAR PACT TO BROADCAST SOUTHEASTERN CONFERENCE COLLEGE SPORTS FOR ABOUT ONE HUNDRED MILLION DOLLARS I. B. M. AGREED TO MAKE A NEW GENERATION OF MAINFRAME CHIPS FOR ITS OLD RIVAL UNISYS INDUSTRY EXPERTS SAID POWERSOFT PLANS TO UNVEIL A DATABASE PACKAGE AIMED AT P. C. SOFTWARE BUYERS SHIFTING ITS FOCUS FROM COMPLEX SOFTWARE FOR LARGE CORPORATIONS BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED FORTY TWO POINT EIGHT SEVEN UP TWENTY TWO POINT SIX THREE COMMODITIES OIL FOURTEEN DOLLARS AND SEVENTY TWO CENTS A BARREL UP SIXTEEN CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY FOUR POINT THREE SIX OFF ZERO POINT FIVE TWO SPOT INDEX ONE HUNDRED THIRTY POINT SIX OH OFF ZERO POINT FOUR ZERO DOLLAR ONE HUNDRED SIX POINT EIGHT FIVE YEN OFF ONE POINT THREE OH ONE POINT SEVEN FIVE FOUR THREE MARKS UP ZERO POINT ZERO ZERO ONE ZERO PICTURE A DRAMATIC CLOSE UP OF A FASHION MODEL HER FACE GLISTENING IN THE SUN HER HAIR SLICKED BACK THE BLUE SEA VISIBLE BEHIND HER SOUNDS LIKE THE COVER OF ELLE MAGAZINE WELL NOT QUITE IT'S ACTUALLY SUN MAGAZINE BROUGHT TO YOU BY RAY BAN SUNGLASSES A UNIT OF BAUSCH AND LOMB BUT IN MANY DETAILS FROM THE TYPEFACE ON THE COVER TO THE CHOICE OF MODEL THE NEW PUBLICATION BEARS MORE THAN A PASSING RESEMBLANCE TO ELLE IN FACT THE RAY BAN MAGAZINE'S COVER MODEL IS GABRIELLE REECE THE TWENTY FOUR YEAR OLD PROFESSIONAL VOLLEYBALL PLAYER WHO HAS GRACED THE COVER OF ELLE AT LEAST TWICE AND AS OF MARCH WILL MAKE REGULAR APPEARANCES INSIDE THE MAGAZINE AS ITS SPORTS COLUMNIST THAT ELLE SHOULD HAVE AN ADVERTISER PRODUCED CLONE IS NO COINCIDENCE SUN IS THE LATEST QUOTE CUSTOM QUOTE PUBLICATION FROM ELLE'S PUBLISHER HACHETTE FILIPACCHI MAGAZINES A UNIT OF MATRA HACHETTE OF PARIS SUBSCRIBERS TO SOME HACHETTE PUBLICATIONS WILL GET THE FIRST ISSUE OF SUN FOR FREE BUT IT WILL ALSO BE SOLD AT NEWSSTANDS CUSTOM MAGAZINES ARE GROWING IN POPULARITY WITH ADVERTISERS AND PUBLISHERS WHO ARE BECOMING DESPERATE TO SIDESTEP THE CURRENT CLUTTER IN TRADITIONAL PRINT MEDIA BUT ADVERTISERS AND PUBLISHERS ARE STRAINING THEIR CREDIBILITY BY ASKING CONSUMERS TO PAY FOR WHAT AT WORST ARE LITTLE MORE THAN LONG GLOSSY ADS AND AT BEST ARE ADVERTISER CONTROLLED PUBLICATIONS POSING AS INDEPENDENT MEDIA HACHETTE FILIPACCHI ALONE HAS BROUGHT OUT SEVEN CUSTOM PUBLISHED MAGAZINES INCLUDING SONY'S FOUR DOLLARS AND NINETY FIVE CENTS SONY STYLE A TWICE YEARLY MAGAZINE THAT ALSO DOUBLES AS THE COMPANY'S CATALOG LESSER KNOWN TITLES INCLUDE KNOW HOW A WOMEN'S MAGAZINE SPONSORED BY GENERAL MOTORS TELL A TEEN MAGAZINE PUBLISHED FOR GENERAL ELECTRIC'S N. B. C. TELEVISION NETWORK AND YOUR BODY AND YOUR HEALTH FROM WEIGHT LOSS COMPANY JENNY CRAIG ALL OF THESE CUSTOM MAGAZINES ARE SOLD ON NEWSSTANDS COMPANIES HAVE LONG PUBLISHED THEIR OWN MAGAZINES WITH MIXED RESULTS PHILIP MORRIS COMPANIES STARTED PUBLISHING PHILIP MORRIS MAGAZINE IN THE MID NINETEEN EIGHTIES AS A SOAPBOX FROM WHICH TO PREACH ABOUT SMOKERS' RIGHTS BUT EXTINGUISHED THE EFFORT IN NINETEEN NINETY TWO FEDERAL EXPRESS CORPORATION PUBLISHES VIA FED EX A FREE MAGAZINE FULL OF CAREER AND OFFICE MANAGEMENT TIPS FOR ONE OF ITS MOST IMPORTANT CUSTOMERS THE PROFESSIONAL SECRETARY THE NEW CORPORATE MAGAZINES HOWEVER DIFFER IN THAT THEY ARE PRODUCED BY THE SAME COMPANIES THAT PUBLISH TRADITIONAL MAGAZINES AND READERS ARE EXPECTED TO PAY TO READ THEM THE BIG QUESTION OF COURSE IS WILL THEY SUN HAS COPIOUS FASHION PHOTOGRAPHS IN WHICH MOST OF THE MODELS WEAR RAY BANS THE RAY BAN NAME AND THE SUNGLASSES APPEAR ON THE COVER INSIDE ARE ARTICLES ON TOPICS TANGENTIALLY RELATED TO RAY BANS AND SUNGLASSES SUCH AS SPORTS CELEBRITIES DRIVING SAFETY AND THE DANGER OF ULTRAVIOLET RAYS A PICTURE FEATURE ON AMERICAN ICONS HIGHLIGHTS SUCH BRANDS AS LEVI'S OREO CAMPBELL'S SOUP AND YES RAY BAN WAYFARERS THERE'S EVEN A PHOTO OF PRESIDENT CLINTON WEARING A PAIR OF WAYFARERS THE PURPOSE OF THE MAGAZINE IS TO GO BEYOND THE LIMITS OF TRADITIONAL ADVERTISING AND BRING READERS SEVERAL MESSAGES ABOUT THE BENEFITS OF BAUSCH AND LOMB'S PREMIUM PRICED SUNGLASSES SAID DAVID WHALEN VICE PRESIDENT OF MARKETING AT BAUSCH AND LOMB'S EYEWEAR DIVISION IT'S ALL PART OF A GRANDER PLAN TO GET PEOPLE TO BUY AND WEAR AT LEAST ONE AND MAYBE MORE PAIR OF RAY BANS WE WANT READERS TO SAY WOW THIS MAGAZINE HAS DEMONSTRATED TO ME THAT SUNGLASSES SHOULD BE AN INTEGRAL PART OF MY ATTIRE I SHOULD GO BUY A PAIR OF RAY BANS HE SAYS PHONY PUBLISHING IS THE VERDICT OF MARTIN S. WALKER THE CHAIRMAN OF PUBLISHING CONSULTANCY WALKER COMMUNICATIONS EFFORTS SUCH AS RAY BAN'S SUN HE SAYS ARE NO MORE CREDIBLE THAN A TELEVISION INFOMERCIAL BUT FOR ADVERTISERS HE SAYS THE IDEA IS ATTRACTIVE BECAUSE IT IS SEEN AS A RELATIVELY INEXPENSIVE LONG LASTING FORM OF ADVERTISING PUBLISHERS MEANWHILE WELCOME THE REVENUE NEITHER RAY BAN NOR HACHETTE WOULD DISCUSS THE TERMS OF THE SUN VENTURE BUT DAVID PECKER HACHETTE FILIPACCHI'S PRESIDENT SAID FIRST ISSUES TYPICALLY RANGE FROM FIVE HUNDRED THOUSAND DOLLARS TO MORE THAN TWO MILLION DOLLARS MR. PECKER NOTED THAT THE EDITORIAL STAFF FOR HACHETTE'S CUSTOM MAGAZINES IS ENTIRELY SEPARATE FROM THOSE OF REGULAR MAGAZINES SOME OF THE MAGAZINES TACKLE TOPICS THAT TEND TO MAKE ADVERTISERS QUEASY HE SAYS FOR EXAMPLE N. B. C.'S TELL RECENTLY PUBLISHED AN ARTICLE ABOUT TEENS AND SEX YET EVEN GENERAL MOTORS' KNOW HOW WHICH ORIGINATED WITH HACHETTE AND NOT GENERAL MOTORS HE SAID ISN'T ABOUT TO RUN A CAR BUYER'S GUIDE IN WHICH A FORD COMES OUT ON TOP DON'T EXPECT ANY APOLOGIES FROM PETER ARNELL WHOSE AGENCY ARNELL GROUP JUST WON RAY BAN'S CONSOLIDATED SEVEN MILLION DOLLAR ACCOUNT PREVIOUSLY AT GREY ADVERTISING MR. ARNELL WHOSE IS ALSO SUN'S PUBLICATION DIRECTOR SAYS HE DOESN'T MIND THINKING OF SUN AS AN INFOMERCIAL IN PRINT THAT ISN'T FAR FROM WHAT SOME TRADITIONAL MAGAZINES ARE ANYWAY HE SAYS MAGAZINES PROMOTE IDEAS YET EVERY FASHION MAGAZINE HAS A SHOPPING GUIDE HE SAID CITING THE SHOPPING GUIDE IN ELLE MAGAZINE THAT TELLS READERS WHERE TO BUY THE CLOTHES FURNITURE AND COSMETICS IN THE EDITORIAL PHOTOS LET ME BE VERY STRAIGHTFORWARD HE ADDED QUOTE DARE I ASK THIS DO YOU REALLY THINK ANY ADVERTISER WHO NEVER SAW HIS PRODUCT IN A MAGAZINE WOULD EVER ADVERTISE THERE ABOUT TWO HUNDRED THOUSAND SUBSCRIBERS TO ELLE AND SEVERAL OTHER HACHETTE PUBLICATIONS WILL RECEIVE A FREE COPY OF SUN IN THE MAIL THIS SPRING BAGGED WITH THEIR MAY ISSUES MR. PECKER SAID HACHETTE AND RAY BAN ALSO HOPE TO SELL THOUSANDS MORE ON NEWSSTANDS ACROSS AMERICA FOR TWO DOLLARS AND FIFTY CENTS A POP RAY BAN PLANS TO START DISTRIBUTING THE MAGAZINE THIS WEEK TO ATHLETES AT THE WINTER OLYMPICS IN LILLEHAMMER NORWAY WHETHER CONSUMERS BITE AT THE NEWSTAND MAY DETERMINE WHETHER SUN IS PERCEIVED AS MORE AD THAN MAGAZINE EVEN MR. WALKER GIVES IT A GOOD SHOT AT PERFORMING WELL THERE'S NO ACCOUNTING FOR WHAT PEOPLE WILL BUY HE SAID AYER THE NEW YORK AGENCY WHOSE PLANS TO MERGE WITH HAL RINEY AND PARTNERS SAN FRANCISCO FELL THROUGH LAST WEEK SAID CHAIRMAN JERRY SIANO HAS GIVEN UP DAY TO DAY CONTROL OF THE AGENCY'S OPERATIONS MR. SIANO FIFTY NINE YEARS OLD WILL RETAIN HIS TITLE BUT CONCENTRATE ON SEEKING OPPORTUNITIES THROUGH MERGERS AND ACQUISITIONS AND FURTHER INVESTMENT IN OUR EXISTING BUSINESS THE AGENCY SAID IN A STATEMENT MR. SIANO WILL WORK WITH ADCOM THE INVESTMENT GROUP THAT ALSO INCLUDES FORMER SAATCHI AND SAATCHI EXECUTIVE RICHARD HUMPHREYS AND W. Y. CHOI AN OWNER OF ASIAN MEDIA PROPERTIES ADCOM ACQUIRED A SUBSTANTIAL STAKE IN AYER LAST MARCH AFTER MERGER TALKS WITH KETCHUM COMMUNICATIONS COLLAPSED TOM MAXEY AYER'S FIFTY SIX YEAR OLD CHIEF OPERATING OFFICER WILL RETIRE AS SOON AS POSSIBLE THE AGENCY SAID ASSUMING MR. MAXEY'S DUTIES IS GLENN CORLETT FIFTY CHIEF FINANCIAL OFFICER PATRICK CUNNINGHAM FIFTY WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF AYER'S NEW YORK OPERATIONS A NEW POSITION HE WAS FORMERLY VICE CHAIRMAN AND CREATIVE DIRECTOR TWO EXECUTIVE VICE PRESIDENTS KEITH GOULD FIFTY EIGHT AND JANET KEELER FORTY SIX WERE NAMED MANAGING PARTNERS OF THE NEW YORK OFFICE OVERSEEING THE AGENCY'S CLIENTS THERE A SPOKESMAN SAID AYER CONTINUES TO SEARCH FOR AN EXECUTIVE TO HEAD ITS U. S. OPERATIONS A POST THAT HAS BEEN VACANT SINCE JULY WHEN DOM ROSSI THEN AYER'S U. S. PRESIDENT WAS NAMED VICE CHAIRMAN BUSINESS DEVELOPMENT MCDONALD'S WHICH HAS HAD A KNACK FOR CHOOSING CONTROVERSIAL MOVIES FOR ITS MARKETING TIE INS SAID IT HAS FOUND A CONTROVERSY FREE FILM THIS YEAR WITH THE FLINTSTONES UNIVERSAL STUDIOS' REVIVAL OF THE ANIMATED STONE AGE TELEVISION FAMILY A STONE AGE QUOTE ROCDONALD'S QUOTE IS FEATURED IN THE LIVE ACTION FLICK IN TWO SCENES THAT TAKE PLACE IN THE TOWN OF BEDROCK MCDONALD'S SAID THE FAST FOOD CHAIN PLANS TO CAPITALIZE ON THE ROCDONALD'S JOKE IN ADS FROM OMNICOM GROUP'S D. D. B. NEEDHAM SAID CRAIG MCANSH MCDONALD'S MARKETING MANAGER MCDONALD'S PLANS IN STORE TIE INS FOR ADULTS AND FOR CHILDREN TWO OF THE COMPANY'S PREVIOUS BLOCKBUSTER TIE INS WITH BATMAN RETURNS AND JURASSIC PARK HELPED THOSE FILMS HAVE RECORD BREAKING OPENING WEEKENDS BUT ALSO RAISED EYEBROWS BECAUSE SOME FRANCHISEES CONSIDERED THEM TOO SCARY TO PROMOTE TO SMALL CHILDREN MR. MCANSH SAID THAT SINCE THE FLINTSTONES IS RATED P. G. AND NOT P. G. THIRTEEN THERE IS NO ANTICIPATION THAT ANYTHING LIKE THAT COULD POSSIBLY HAPPEN AGAIN UNIVERSAL STUDIOS IS A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL M. C. A. M. C. A. SLASH UNIVERSAL MERCHANDISING SAID IT ALSO HAS LICENSING PLANS WITH MARKETERS INCLUDING MATTEL AND PHILIP MORRIS'S KRAFT GENERAL FOODS UNIT THIS PLAN REPRESENTS THE FEDERAL GOVERNMENT'S BIGGEST FISCAL GAMBLE SINCE RONALD REAGAN SIMULTANEOUSLY CUT TAXES AND INCREASED DEFENSE SPENDING C. B. O. DIDN'T PUT IT THAT WAY OF COURSE THE EXPLOSIVE WARNING IS BURIED IN A CHAPTER DEMURELY TITLED QUOTE OTHER CONSIDERATIONS QUOTE UNDER THE UNWIELDY HEADING QUOTE THE EFFECTS AND SUSTAINABILITY OF CONTROLS ON THE RATE OF GROWTH OF PREMIUMS QUOTE BUT IT'S THERE NONETHELESS AND TAXPAYERS SHOULD VIEW IT AS A BIG RED FLAG THE C. B. O. REPORT ESTIMATES THAT OVER THE NEXT SIX YEARS THE CLINTON PLAN WOULD COST THE GOVERNMENT ONE HUNDRED THIRTY BILLION DOLLARS MORE THAN THE WHITE HOUSE SAYS BUT THAT ASSUMES MR. CLINTON'S CAPS ON THE GROWTH IN HEALTH CARE SPENDING HOLD IF THEY DON'T THE COST TO TAXPAYERS WILL BE SUBSTANTIALLY MORE THE FUNDAMENTAL QUESTION ABOUT THE CLINTON PLAN THE ONE THAT MOST TROUBLES SEVERAL OF MR. CLINTON'S ECONOMIC ADVISERS IS WILL THOSE CAPS HOLD READING BETWEEN THE LINES C. B. O. SUGGESTS THEY WON'T BUT THE REPORT EXPLICITLY SAYS ONLY THAT THE CAPS ARE LIKELY TO CREATE IMMENSE PRESSURE AND CONSIDERABLE TENSION IN SOCIETY AND THE HEALTH CARE SYSTEM PRESSED BY REPUBLICAN SENATOR JOHN DANFORTH OF MISSOURI TO ELABORATE C. B. O. DIRECTOR ROBERT REISCHAUER DUCKED THE REAL ISSUE HE SAID IS WHETHER THE INSTITUTIONAL AND POLITICAL STRUCTURE OF THE NATION CAN WITHSTAND THOSE PRESSURES AND WE HAVE NO ABILITY TO JUDGE THAT THE WHITE HOUSE ESTIMATES THAT HEALTH INSURANCE PREMIUMS EMPLOYERS PAY FOR THEIR WORKERS WILL RISE NINE PERCENT ANNUALLY IN COMING YEARS IF THERE IS NO HEALTH CARE REFORM MR. CLINTON PROPOSES A LAW TO CUT THAT RATE OF INCREASE IN HALF HE DESCRIBES THIS AS A BACKSTOP IN CASE MANAGED COMPETITION FAILS TO SLOW THE GROWTH IN HEALTH COSTS C. B. O. FIGURES THE CAPS ARE ABOUT THE ONLY THING IN THE CLINTON PLAN THAT WILL ACTUALLY WORK TO SLOW THE GROWTH OF HEALTH CARE SPENDING IT ACCEPTS THEM BECAUSE MR. CLINTON WOULD WRITE A LAW WITH TEETH TO ENFORCE THEM BUT LAWS LAST ONLY AS LONG AS CONGRESS AND THE PUBLIC SUPPORT THEM IF THE RELIANCE IS PLACED ON PREMIUM CAPS SAYS SENATOR DANFORTH IT'S THE POLITICAL PROBLEM OF HAVING THE WILL TO STICK WITH THOSE CAPS C. B. O. PREDICTS THAT THE FIRST PROBLEMS WILL SURFACE WHEN MR. CLINTON'S NEW NATIONAL HEALTH BOARD SETS DIFFERENT PREMIUMS FOR DIFFERENT REGIONS TO REFLECT EXISTING DIFFERENCES IN HEALTH COSTS BOSTON'S PREMIUM COULD EASILY BE TWICE THE ONE SET FOR EL PASO TEXAS AMERICANS TOLERATE WIDE REGIONAL DISPARITIES IN PRIVATE MARKETS BUT SUCH DISPARITIES ARE HARD TO JUSTIFY WHEN DETERMINED BY GOVERNMENT THAT'S WHY SOCIAL SECURITY BENEFITS ARE THE SAME ACROSS THE COUNTRY DESPITE DIFFERING LIVING COSTS THE PRESSURE TO SPEND MORE MONEY WILL LIKELY GROW IN THE SECOND YEAR WHEN THE BOARD SETS GROWTH RATES FOR DIFFERENT REGIONS AND THE CONGRESSMAN FROM EL PASO DISCOVERS THAT EVEN THOUGH PREMIUMS THERE ARE LOWER THAN IN BOSTON THEY MIGHT BE ALLOWED TO RISE ONLY BY THE SAME PERCENTAGE AND IF THE REGIONAL CAPS SURVIVE THAT BATTLE THERE'S STILL THE SUBSTANTIAL RISK THAT THE SPENDING CAPS IN AND OF THEMSELVES WILL PROVOKE ENOUGH HOSPITAL CLOSINGS DISGRUNTLED DOCTORS LONG WAITING TIMES AND HORROR STORIES TO FORCE CONGRESS TO RAISE THEM LIFTING THE CAPS WOULD COST TAXPAYERS BILLIONS OF DOLLARS A YEAR IN ADDITIONAL SUBSIDIES TO LOW WAGE WORKERS AND SMALL COMPANIES HOW MUCH LEWIN VHI A HEALTH CONSULTING FIRM IN FAIRFAX VIRGINIA ESTIMATES THAT IF THE CONGRESS DECIDES THAT CUTTING THE ANNUAL GROWTH OF HEALTH COSTS FROM THE CURRENTLY PROJECTED NINE PERCENT TO ROUGHLY FOUR AND ONE HALF PERCENT IS TOO TOUGH AND SETTLES FOR A SIX AND THREE QUARTERS PERCENT GROWTH RATE THE GOVERNMENT WILL HAVE TO SPEND AN ADDITIONAL SEVENTEEN BILLION DOLLARS ANNUALLY BY THE YEAR TWO THOUSAND ON HEALTH CARE SUBSIDIES THAT EQUALS THE JUSTICE DEPARTMENT'S ANNUAL BUDGET CONGRESS WILL HAVE THREE CHOICES IF THE CAPS COME UNDER ATTACK AS THE C. B. O. PREDICTS THEY WILL IT CAN HANG TOUGH WHICH WILL MEAN ANGRY DOCTORS INFURIATED HOSPITALS AND ENRAGED CONSTITUENTS WHO WILL SAY THEY ARE BEING DENIED THE HEALTH CARE THEY WERE PROMISED IT CAN LIFT THE CAPS AND PAY FOR THAT WITH HIGHER TAXES OR SPENDING CUTS SOMEWHERE ELSE OR IT CAN LIFT THE CAPS AND LET THE DEFICIT WIDEN BUT AS C. B. O. WARNS THERE ISN'T ANY FREE LUNCH THE CONGRESSIONAL BUDGET OFFICE MAY BE WRONG MR. CLINTON AND IRA MAGAZINER THE ARCHITECT OF HIS HEALTH PLAN MAY BE CORRECT WHEN THEY ARGUE THAT THEIR QUOTE MANAGED COMPETITION QUOTE WILL SQUEEZE OUT WASTE AND SLOW THE INCREASE OF RISING COSTS WITHOUT PRODUCING UNSUSTAINABLE PRESSURES BUT THE FISCAL RISKS THEY PROPOSE TO TAKE ARE ENORMOUS AND THEY GIVE NO HINT WHERE THEY WOULD GET THE MONEY TO PAY FOR THEIR ERROR IF THEY ARE WRONG DENMARK'S NOVEMBER TRADE SURPLUS FELL TO FOUR POINT EIGHT SEVEN BILLION KRONER SEVEN HUNDRED TWELVE POINT EIGHT MILLION DOLLARS FROM FOUR POINT NINE EIGHT BILLION KRONER IN OCTOBER THE DANISH STATISTICAL AGENCY SAID IMPORTS ROSE TO SEVENTEEN POINT TWO EIGHT BILLION KRONER FROM SIXTEEN POINT EIGHT EIGHT BILLION KRONER THE MONTH BEFORE WHILE EXPORTS ROSE TO TWENTY TWO POINT ONE FIVE BILLION KRONER FROM TWENTY ONE POINT EIGHT SIX BILLION KRONER THE AGENCY SAID THE FIGURES INDICATED THAT THE PICKUP IN EXPORTS THAT STARTED IN THE MIDDLE OF NINETEEN NINETY THREE IS CONTINUING FOR TWO HUNDRED YEARS THE FAMILY OF O. HENRIK BRAASTAD HAS RAISED OATS AND BARLEY ON A ROLLING FARM HERE ON THE STARK BANKS OF LAKE MJOSA THIS WEEK THE CROPS SUDDENLY LOOK A LITTLE DIFFERENT A SHEAF OF SATELLITE DISHES AND TWO KILOWATT SPOTLIGHTS SPROUTS FROM THE OLD WOODEN EAVES THE BACK OF THE BARN IS PILED HIGH WITH BALES OF FLASHING ELECTRONIC BOXES AND AROUND THE CORNER BELOW THE BRAASTADS' OLD ROOSTER WEATHERVANE HERE COME THE PERKY HOSTS OF QUOTE C. B. S. THIS MORNING QUOTE HARRY SMITH AND PAULA ZAHN BLAH BLAH BLAH BLAH BOSNIA LIVE MUSIC THIS ANGEL THING SAYS MR. SMITH CHEERILY HARRY AND PAULA TAKE A LEISURELY STROLL YELLS A REHEARSAL DIRECTOR THEY STROLL ON CUE A YOUNG SKIER GLIDES BY FLUFFY SNOW WAFTS DOWN ON AN OLD CLOCK TOWER AND A LITTLE WOODEN SLEIGH INSIDE THE BARN A CROWD OF TECHNICIANS HAPPILY WATCHES THE SCENE ON A WALL OF MONITORS C. B. S. HAS STORMED INTO THE LITTLE BRAASTAD FARM AND SPENT A FORTUNE TRANSFORMING IT INTO THE QUAINTEST MOST AUTHENTIC POSTCARD IN ALL OF NORWAY C. B. S. ENGINEERS BLASTED A HOLE IN THE BACK OF THE BARN TO CAPTURE A SWEEPING VISTA OF LILLEHAMMER THEY FILLED THE BACK PORCH WITH PRETTY WOODEN CHAIRS AND FARM IMPLEMENTS SOME FOUND IN MR. BRAASTAD'S BASEMENT AND OTHERS CONSTRUCTED BY C. B. S.'S PROP DESIGNERS THEY ALSO CREATED WHAT MUST CERTAINLY BE THE ONLY BARN IN THE GUDBRANDSDAL VALLEY WITH AN OFFICIAL GREEN ROOM WITH COMFY CHAIRS FOR OFFSTAGE TALK SHOW GUESTS BIG MIRRORS HANGING FROM THE ANCIENT STONE WALLS AND A TABLE PILED WITH T. V. MAKEUP THE WORLD WILL SEE THE HIGHLY TELEGENIC FRUITS OF ALL THESE LABORS DURING C. B. S.'S MORNING BROADCASTS FROM THE OLYMPICS BEGINNING TODAY C. B. S. WAS ZINGED BY CRITICS DURING ITS NINETEEN NINETY TWO WINTER OLYMPICS BROADCAST FOR BUILDING A BLAND INTERIOR STUDIO THAT TOOK NO ADVANTAGE OF THE MAJESTIC ALPS SURROUNDING ALBERTVILLE A DENTIST'S WAITING ROOM SCOFFED THE NEW YORK TIMES C. B. S. VOWED NOT TO MAKE THAT MISTAKE IN LILLEHAMMER WHEN YOU TURN ON THE T. V. YOU'LL SEE HARRY AND PAULA AND SAY THERE THEY ARE AT THE OLYMPICS SAYS C. B. S. THIS MORNING PRODUCER TED SAVAGLIO QUOTE I HAVE THIS FANTASY THAT THEY'LL OPEN UP THE FIRST DAY ARRIVING AT THE FARM ON A SLEIGH QUOTE THE TIFFANY NETWORK'S VENTURE INTO NORDIC AGRONOMY BEGAN TWO YEARS AGO WHEN ITS DIRECTOR OF OLYMPICS OPERATIONS GOT LOST ON A BACK ROAD IN LILLEHAMMER THE DIRECTOR BARRY ZEGEL FOUND HIMSELF ON A GRACEFUL EMBANKMENT WITH A STATELY PINK GINGERBREAD HOUSE A CLOCK TOWER SOME TRADITIONAL WOODEN FARM BUILDINGS AND A SPECTACULAR VIEW OF LILLEHAMMER ACROSS THE LAKE MR. ZEGEL SMELLED T. V. HEAVEN AND TOOK A C. B. S. THIS MORNING PRODUCER BACK TO TAKE A LOOK WE JUST DROVE IN NOT KNOWING IF THEY WERE GOING TO SHOOT AT US HE SAYS FROM A FARMHOUSE WINDOW THE SHUTTERS FLEW OPEN AND A HEAD POKED OUT SHOUTING IN NORWEGIAN THE C. B. S. DUO SHOUTED BACK THE MAN IN THE WINDOW SUMMONED HIS ENGLISH AND TOLD THEM TO COME BACK IN THE AFTERNOON WHEN THEY RETURNED MR. BRAASTAD GREETED THEM AT THE DOOR AND SHOWED THEM TO A COZY DINING ROOM LAID OUT FOR TEA HIS DAUGHTERS HENRIETTE AND JOHANNE PARADED IN WITH A TRAY OF FRESH BAKED WAFFLES AND PRESERVES IT WAS KIND OF LIKE OUT OF A B. MOVIE MR. ZEGEL SAYS MR. ZEGEL RETURNED SOON AFTERWARD IMPATIENT TO TALK BUSINESS IT WENT VERY SLOWLY IT WOULD TAKE TWO HOURS TO GET THROUGH WITH THE WAFFLES HE SAYS HE CAME BACK MORE THAN TWENTY TIMES MR. BRAASTAD AN EARNEST BEARDED MAN WITH BEN FRANKLIN GLASSES TOOK AN INTENSE INTEREST IN EVERY CONTRACTUAL DETAIL THE FARMER AND THE BROADCASTER BECAME FRIENDS MR. ZEGEL FOUND OUT THAT WHEN MR. BRAASTAD ISN'T TENDING THE OATS AND BARLEY HE RUNS A BUSINESS CONSULTANCY SPECIALIZING IN THE ECONOMICS OF INDUSTRIAL TECHNOLOGY MR. BRAASTAD INVITED MR. ZEGEL OVER FOR A GALA CHRISTMAS FEAST WITH REINDEER LUTEFISK AQUAVIT AND NORWEGIAN CAROLS BARRY AND I HAVE LEARNED QUITE A LOT ABOUT EACH OTHER AND U. S. BROADCASTING AND NORWEGIAN DAILY LIFE DURING THIS CO OPERATION MR. BRAASTAD SAYS DURING THE LAST WEEKEND OF PREPARATIONS THE BOUNDARY BETWEEN U. S. BROADCASTING AND NORWEGIAN DAILY LIFE IS GETTING BLURRY CAMERAMEN AND PRODUCERS WITH HEADSETS ARE TRAMPING PAST MR. BRAASTAD'S TRACTOR A QUINTET OF YOUNG FIDDLERS AND MOUTH HARPISTS IN FOLK COSTUME ARE PLAYING DOWN BY THE BARN WITH A LAD IN BLACK LEGGINGS DOING TRADITIONAL NORWEGIAN BREAK DANCING BESIDE A LASS HOLDING A BLACK HAT ON A STICK QUOTE I WANT THAT KICK TO HAPPEN AT THE BEGINNING QUOTE SHOUTS DIRECTOR JEFF KAYE I AM GOING LIKE THIS ASKS THE DANCER MADS BOHLE HE DEFTLY KICKS THE HAT OFF THE STICK AND MANEUVERS TO CATCH IT ON HIS HEAD GREAT GREAT WAIT FOR YOUR CUE FROM NANCY LATER THIS WEEK AN ENCAMPMENT OF INDIGENOUS NORWEGIAN SAMI PEOPLE IS EXPECTED TO APPEAR ON THE FROZEN LAKE WITH REINDEER LOOK FOR C. B. S. WEATHERMAN MARK MCEWEN CLOSE ON THEIR TRAIL MORRIS AIR A UNIT OF SOUTHWEST AIRLINES WILL DISCONTINUE ITS DAILY SERVICE TO AND FROM EUGENE EFFECTIVE APRIL FOURTH THE COMPANY SAID IT IS DISCONTINUING THE FLIGHTS TO CONSOLIDATE ITS AIRCRAFT AND CREW RESOURCES IN OTHER PARTS OF ITS SYSTEM TONYA GETS TO SKATE AND TOMMY MOE WINS THE DOWNHILL IT DOESN'T GET MUCH BETTER THAN THAT DOES IT O. K. THAT'S A BAD QUESTION LET ME PUT IT THIS WAY HOW BOUT THAT TOMMY MOE NO YANK GROANS FOR THAT ONE ON A COLD BRIGHT DAY THAT WILL LIGHT THE OFT DIM ANNALS OF U. S. SKIING THE SUNNY MR. MOE A NATIVE OF PALMER ALASKA ROCKETED DOWN QUOTE WHITE MOUNTAIN QUOTE NAMED FOR THE DEPOSIT OF PALE QUARTZITE NEAR ITS PEAK TO WIN THE FIRST AND BY MANY ESTIMATIONS PREMIER EVENT ON THE ALPINE SKIING SCHEDULE IN THESE WINTER OLYMPICS MR. MOE'S VICTORY WAS AN UPSET BY MOST EXPECTATIONS HE'D NEVER BEFORE WON A WORLD CLASS EVENT AND ONLY LAST WINTER WAS SECOND TEAM ON A NOT HIGHLY RATED AMERICAN SQUAD AMONG THEM WAS HIS OWN MY GOAL WAS A TOP SIX FINISH THE SOON TO BE TWENTY FOUR YEAR OLD ADMITTED ANOTHER WAS THAT OF MOST OF THE THIRTY EIGHT THOUSAND PEOPLE WHO CROWDED THIS FLEDGLING SKI AREA NORTH OF LILLEHAMMER IN HOPES OF SEEING A TRIUMPH BY THE NORWEGIAN HERO KJETIL ANDRE AAMODT AT TWENTY TWO MR. AAMODT IS YOUNGER THAN MR. MOE BUT WAS A CERTIFIED ACE AS A RESULT OF HIS GOLD AND BRONZE MEDALS IN THE GIANT SLALOM AND DOWNHILL SLALOM HYBRID SUPER G. AT THE ALBERTVILLE OLYMPICS OF TWO YEARS AGO THIS TIME THE SEVENTH SKIER OUT OF THE GATE HE ZIPPED INTO FIRST PLACE AS HIS COUNTRYMEN WAVED THEIR FLAGS AND CLANGED THEIR COWBELLS THEIR ELATION WAS STILL AT FULL VOLUME WHEN MR. MOE THE NEXT OUT STARTED HIS RUN IT QUIETED AS HIS FRACTIONAL TIMES CLOSE TO MR. AAMODT'S WERE ANNOUNCED AND ENDED IN A KIND OF COLLECTIVE GASP WHEN THE AMERICAN'S CLOCKING OF ONE FORTY FIVE EDGED OUT THEIR MAN I WAS SURPRISED WHEN I LOOKED UP AND SAW I'D TAKEN FIRST AND WASN'T SURE I'D STAY THERE MY FIRST THOUGHT WAS THAT A MEDAL WAS A POSSIBILITY MR. MOE ALLOWED BUT HE ADDED I ALWAYS KNEW I COULD SKI FAST AND THAT IT WAS JUST A MATTER OF TIME BEFORE I'D WIN AS OFTEN IS THE CASE IN BIG TIME INTERNATIONAL SKIING THE AMOUNT OF TIME THAT MATTERED HERE WAS SMALL ZERO POINT ZERO FOUR SECOND SEPARATED MR. MOE FROM MR. AAMODT WITH THE CANADIAN ED PODIVINSKY AN ADDITIONAL ZERO POINT ZERO EIGHT SECOND BACK IN THIRD A WIGGLE HERE AND A WOBBLE THERE OVER THE TWO THOUSAND NINE HUNDRED THIRTY SIX METER RUN MADE THE DIFFERENCE I THINK I LOST ZERO POINT ZERO ONE SECOND AT THE TOP PART ZERO POINT ZERO TWO IN THE MIDDLE AND ZERO POINT ZERO ONE AT THE BOTTOM MR. AAMODT SMILED THAT'S A SKI JOKE A BIGGER DIFFERENCE WAS IN THE NATIONALITIES OF THE TOP THREE FINISHERS THIS WAS THE FIRST TIME THAT THE COUNTRIES OF THE ALPS AUSTRIA SWITZERLAND FRANCE AND ITALY ALL WERE DENIED AN OLYMPIC MEN'S DOWNHILL MEDAL USUALLY THEY WIN ALL THREE GIVEN MESSRS MOE AND PODIVINSKY'S NORTH AMERICAN RESIDENCE AND MR. AAMODT'S COLLOQUIAL MASTERY OF THAT CONTINENT'S PREDOMINANT TONGUE THE OUTCOME MIGHT BE DUBBED QUOTE THE TRIUMPH OF THE ENGLISH SPEAKING PEOPLES QUOTE THE ONLY PREVIOUS U. S. MEDAL IN TWELVE OLYMPIC DOWNHILLS WAS BILL JOHNSON'S GOLD IN NINETEEN EIGHTY FOUR AT SARAJEVO THE KVITFJELL COURSE WAS PRAISED BY JUST ABOUT ALL THE COMPETITORS FOR ITS FAIRNESS ALTHOUGH THEIR DEFINITION OF WHAT THAT MEANT MIGHT DIFFER FROM YOURS AND MINE DOWNHILL SKIERS AFTER ALL ARE PEOPLE WHO FLING THEMSELVES INTO THE ABYSS WITH THE FULL EXPECTATION OF COMING OUT THE OTHER SIDE IT WAS GREAT THERE WERE TURNS AT THE TOP AND JUMPS IN THE MIDDLE AND IT WAS FAST AT THE END MR. AAMODT EXPLAINED SO THERE THE COURSE ALSO WAS SAFE WHICH EVERYONE CAN APPECIATE JUST FOUR OF YESTERDAY'S FIFTY FIVE STARTERS FAILED TO FINISH AND ALL OF THOSE WALKED AWAY FROM THEIR FALLS APPARENTLY IT'S A LAYOUT THAT CAN BE ENJOYED ON MORE THAN ONE LEVEL AS THE MOVIE CRITICS MIGHT SAY LAST YEAR JUST AFTER THE RUN WAS COMPLETE NORWAY'S DIGNIFIED QUEEN SONYA THEN FIFTY FIVE YEARS OLD NEGOTIATED IT NOT ONCE BUT THRICE HER TIMES WERE NOT ANNOUNCED HOWEVER FOR MR. MOE A TIGHTLY WOUND FIVE FOOT TEN THE VICTORY CAPPED AN ATHLETIC CAREER THAT'S BEEN REMARKABLE FOR ITS MANY UPS AND DOWNS OVER A RELATIVELY BRIEF PERIOD HE WAS SOMETHING OF A PRODIGY IN HIS SPORT GAINING A SIXTH PLACE FINISH IN THE U. S. NATIONAL CHAMPIONSHIPS BEFORE THE AGE OF SIXTEEN AND WINNING THREE MEDALS TWO OF THEM GOLD OVER FOUR WORLD JUNIOR COMPETITIONS HE ALSO WAS KICKED OFF A COUPLE OF NATIONAL TEAMS AS A YOUTH AND LAST SEASON NEVER PLACED HIGHER THAN THIRTEENTH IN A WORLD CUP RACE HE ENDED THE YEAR STRONGLY WITH A FIFTH PLACE IN THE DOWNHILL AT THE WORLD CHAMPIONSHIPS IN MORIOKA JAPAN AND IN DECEMBER COPPED A BRONZE MEDAL IN A SUPER G. AT VAL D'ISERE IN FRANCE BUT HE STILL CAME HERE AS THE NUMBER TWO AMERICAN BEHIND THE VETERAN A. J. KITT WHO WAS TO WIND UP SEVENTEENTH IN ANSWER TO A DIRECT QUESTION MR. MOE CONFESSED TO GETTING INVOLVED WITH CERTAIN THINGS I. E. DRUGS AND HAVING HAD SOME ROUGH YEARS AS AN ADOLESCENT BUT HE SAID HE NEVER CONSIDERED HIMSELF A DRUG USER JUST A NORMAL AMERICAN KID AND BESIDES THAT WAS IN THE PAST HE CREDITED HIS SUDDEN SURGE TO A WILLINGNESS TO FOLLOW COACHES' ADVICE AND AN APPRECIATION OF THE VALUE OF REST IN TRAINING AFTER THIS PAST CHRISTMAS HE REMOVED HIMSELF FROM THE ICE AND SNOW CIRCUIT FOR AN EIGHT DAY TRIP TO THE CANARY ISLANDS WHERE AMONG OTHER THINGS I STUCK MY FEET IN THE WARM SAND SHELVING SOME EXPECTATIONS HELPED TOO TODAY I TRIED NOT TO BE OVERWHELMED BY THE FACT THIS WAS A BIG OLYMPIC DOWNHILL HE SAID QUOTE INSTEAD OF THINKING MEDAL I TRIED TO KEEP MY MIND ON THE SIMPLE PARTS OF SKIING KEEPING MY HANDS OUT IN FRONT OF ME AND STAYING FORWARD BEFORE I KNEW IT I WAS AT THE BOTTOM TIME SURE FLIES WHEN YOU'RE HAVING FUN AH THE LIFE OF AN OLYMPIC SKIER ALPINE CHALETS JET SET TRAVEL BEAUTIFUL PEOPLE APRES SKI PRESSURE IT IS A MERCILESS PRESSURE THAT MEASURES A SKIER'S WORTH IN FRACTIONS OF A SECOND A MERE BLINK OF THE EYE BEING THE DIFFERENCE BETWEEN LEGEND AND LOUSE A BLINDING PRESSURE THAT FORCES SKIERS TO BLOCK OUT THE DANGERS OF HURTLING DOWN ICY TWISTING SLOPES AT SPEEDS THAT CAN HIT EIGHTY MILES PER HOUR A CHALLENGING PRESSURE THAT PRODDED AUSTRIAN ULRIKE MAIER MOTHER OF A FOUR YEAR OLD DAUGHTER TO TAKE ONE LAST RUN AT THE ELUSIVE OLYMPIC GOLD BEFORE RETIRING SHE DIDN'T MAKE IT DYING IN A HORRENDOUS CRASH ON A DOWNHILL COURSE IN GERMANY TWO WEEKS AGO THIS A STORY ABOUT THAT PRESSURE AND HOW IT HAS PROPELLED AND HAUNTED THE CAREERS OF TWO OLYMPIC SKIERS ONE AUSTRIA'S PETRA KRONBERGER WHO WALKED AWAY FROM THE SPORT AT THE AGE OF TWENTY THREE AFTER A FABULOUSLY SUCCESSFUL CAREER THE OTHER GERMANY'S KATJA SEIZINGER WHO AT TWENTY ONE IS PUSHING TO REACH THE TOP MS. KRONBERGER WAS THE RADIANT STAR OF THE NINETEEN NINETY TWO WINTER OLYMPICS IN ALBERTVILLE CAPTURING GOLD MEDALS IN THE SLALOM AND THE ALPINE COMBINED HER EXUBERANTLY SMILING FACE FOR A RARE MOMENT RELIEVED OF THE PRESSURE LEAPT FROM THE COVER OF TIME MAGAZINE QUOTE WHEN I WON THE SLALOM IT WAS LIKE A BIG STONE FELL FROM MY SHOULDERS QUOTE SHE REMEMBERS I COULDN'T IMAGINE A MORE WONDERFUL DAY IN MY SKIING CAREER WITH THE NEXT WINTER OLYMPICS ONLY TWO YEARS AWAY EVERYONE IN THE SKI WORLD ASSUMED MS. KRONBERGER WOULD TRIUMPHANTLY ARRIVE IN LILLEHAMMER DETERMINED TO DEFEND HER MEDALS AND ADD TO HER LEGEND INSTEAD IN EARLY NINETEEN NINETY THREE SHE PULLED A MICHAEL JORDAN LEAVING HER SPORT WHILE AT THE PINNACLE OF SUCCESS ONCE THE STONE WAS OFF HER SHOULDERS SHE COULDN'T BRING HERSELF TO LIFT IT BACK UP AGAIN SHE TRIED COMPETING IN THE OPENING RACES OF THE NINETEEN NINETY THREE WORLD CUP SEASON AND FINISHED IN THE MIDDLE OF THE PACK THE STRANGEST THING WAS THAT I THOUGHT I COULD SKI WITHOUT PRESSURE SHE SAYS REFLECTING ON THE FINAL DAYS OF HER CAREER BUT I COULDN'T THEN CAME THE FEAR OF SERIOUS INJURY A FEAR THAT I ALWAYS HAD BUT WAS ABLE TO REPRESS BECAUSE I PUSHED TOWARD MY GOALS OF WINNING I REACHED THOSE GOALS AND I FOUND I COULDN'T REPRESS THE FEAR ANY LONGER SUDDENLY SHE WAS LIKE ANY OTHER PERSON STARING AT THE DOWNHILL SLOPE FROM THE STARTING GATE QUAKING AT THE DANGERS LURKING BELOW THUS INSTEAD OF GOING FOR GOLD IN LILLEHAMMER MS. KRONBERGER IS DILIGENTLY STUDYING SUCH THINGS AS MATH AND BIOLOGY IN A SALZBURG HIGH SCHOOL AND THE PRESSURE PACKED BLINDERS REMOVED CLEARLY DISSECTING THE SKI CIRCUS THAT LEFT LITTLE ROOM FOR ANYTHING BUT SKIING QUOTE YOU KNOW QUOTE SHE SAYS WISTFULLY QUOTE I ALWAYS WANTED TO BE AN AU PAIR GIRL QUOTE BUT ALWAYS THERE WERE RACES TO BE WON WHEN YOU ARE IN A HIGH PERFORMANCE SPORT YOU LIVE IN A LAND OF EXTREMES IT IS AN IMAGINARY WORLD NOT THE WORLD WHERE MOST PEOPLE LIVE THE LINE BETWEEN SUCCESS AND FAILURE IS SO THIN WHEN YOU ARE ON TOP YOU'RE THE SKI QUEEN IF YOU ARE ZERO POINT ZERO TWO OF A SECOND SLOWER YOU'RE A FAILURE MS. KRONBERGER SAYS THE GOAL IS TO STAND ON THE TOP OF THE MEDALS PLATFORM THE OTHERS ARE FORGOTTEN FOR ATHLETES WHO TRAIN FROM DAWN TO DUSK ELEVEN MONTHS OF THE YEAR SINCE THEY BECAME TEENAGERS FAILURE AND IGNOMINY ARE TERRIFYING PROSPECTS YOU FEEL THE PRESSURE FROM ALL SIDES EXPLAINS MS. KRONBERGER FROM A SKI CRAZY PUBLIC FROM THE CORPORATE SPONSORS FROM THE PRESS AND ABOVE ALL FROM YOURSELF A SKIER'S PRECIOUS LEISURE MOMENTS SHE NOTES ARE CLOUDED WITH THOUGHTS OF THE NEXT RACE EVEN IN SLEEP COME VISIONS OF SNAKING THROUGH THE SLALOM GATES QUOTE YOU HAVE THIS AMBITION TO SUCCEED QUOTE SHE SAYS AND ONE SUCCESS JUST INCREASES THE PRESSURE FOR MORE I NEVER HAD AN OFF SEASON WHEN I DIDN'T WIN AND NOBODY CARED ABOUT ME ON ONE HAND I SAY THANK GOD BUT ON THE OTHER HAND I COULD HAVE PROFITED FROM THAT SHE SAYS IT WOULD HAVE GIVEN ME TIME TO THINK TIME TO APPRECIATE MY SUCCESS NOW PETRA KRONBERGER AN OLYMPIC SPECTATOR FINALLY HAS THE TIME THE PRESSURE IS OFF BUT IT STILL HAUNTS HER TEN DAYS AGO IN AN ALPINE VALLEY SHE LAID HER FORMER TEAMMATE ULRIKE MAIER TO REST MS. SEIZINGER A DOWNHILL SPECIALIST HAD LITTLE TIME TO MOURN THERE WERE THE FINAL WORLD CUP RACES AS TUNEUPS FOR THE OLYMPICS SHE COULDN'T LET UP FOR SHE ARRIVES IN LILLEHAMMER BEARING A MOUNTAIN OF EXPECTATIONS FROM A SPORTS MAD NATION CRAVING GLOBAL ACCLAIM AT ALBERTVILLE SHE WAS UNIFIED GERMANY'S MAIN HOPE FOR ALPINE GLORY EVERY RUN PRACTICE OR REAL SEEMED TO MERIT A BULLETIN IN THE GERMAN MEDIA WHEN SHE MANAGED JUST THE BRONZE IN THE SUPER G. AND FINISHED A HEARTBREAKING FOURTH IN THE DOWNHILL SHE WAS BURIED BENEATH AN AVALANCHE OF CROSS EXAMINATION BY HER COUNTRYMEN ALL EIGHTY MILLION OF THEM IT SEEMED IT'S NOT EASY WHEN YOU HAVE A DISAPPOINTMENT THE CAMERA IS RIGHT THERE AND THEY WANT AN ANALYSIS AND EVERY DETAIL AND SOMETIMES THEY JUST START MAKING ACCUSATIONS SAYS MS. SEIZINGER QUOTE IN GERMANY YOU'RE OVERPRAISED ONE DAY AND THEY RUN YOU DOWN THE NEXT IF YOU'RE NOT ON TOP QUOTE SINCE ALBERTVILLE TRAINING AND COMPETING ALMOST NONSTOP HER PURSUIT OF VICTORY HAS BEEN SINGLE MINDED SHE HAS WON BACK TO BACK WORLD CUP DOWNHILL CROWNS AS WELL AS LAST YEAR'S SUPER G. TITLE AND BARELY MISSED THE OVERALL CHAMPIONSHIP AND WITH RECENT TRIUMPHS IN THIS SEASON'S WORLD CUP CAMPAIGN SHE IS THE FAVORITE IN THE SPEED RACES AT LILLEHAMMER BUT SO MUCH SUCCESS IS HEAVY BAGGAGE FOR THE BEST SKIER EVER TO EMERGE FROM THE FLATLANDS OF CENTRAL GERMANY GROWING UP NEAR HEIDELBERG FAR FROM THE ALPS SHE WAS DRIVEN BY HER FATHER TO A BLACK FOREST HILLOCK ABOUT A THOUSAND FEET HIGH NOW WHILE OTHERS FERRY HIS DAUGHTER FROM MOUNTAIN TO MOUNTAIN HER FATHER SIFTS THE TEN OR TWENTY INTERVIEW REQUESTS THAT ARRIVE DAILY FOR KATJA IN GERMANY WHERE A CARNIVOROUS PRESS VIRTUALLY DEVOURS SPORTS HEROES TENNIS STARS BORIS BECKER AND STEFFI GRAF HAVE SOUGHT REFUGE IN MONACO AND NEW YORK RESPECTIVELY MS. SEIZINGER'S WORLD CUP RESULTS ARE EVEN FRONT PAGE NEWS IN THE STUFFY FRANKFURTER ALLGEMEINE ZEITUNG THE NEWSPAPER'S MAGAZINE HAS PROFILED HER AT LENGTH AND EVEN COINED AN ADJECTIVE TO DESCRIBE HER MITTERMAIERISCH AFTER ROSI MITTERMAIER THE OLYMPIC AND WORLD CUP WINNER OF THE NINETEEN SEVENTIES AND THE MOST SUCCESSFUL WOMAN SKIER GERMANY HAS PRODUCED SO FAR MS. SEIZINGER HAS BEEN ABLE TO DEFLECT SOME OF THIS ATTENTION WITH A WINSOME INTERVIEW TECHNIQUE I ALWAYS SAY THAT SPORTS IS ONE OF THE MOST BEAUTIFUL SIDELIGHTS IN LIFE AND THAT ITS IMPORTANCE SHOULDN'T BE OVERDONE BUT THE OLYMPICS SPECIALIZES IN OVERKILL AS DOES THE DEMANDING GERMAN PUBLIC THEY EXPECT MIRACLES MS. SEIZINGER SAYS SHE RESIGNEDLY SHRUGS HER SHOULDERS BUT THE PRESSURE DOESN'T BUDGE RESPONDING TO SPREADING PROTESTS OF RUSSIA'S FAILURE TO MEET PAYROLLS PRIME MINISTER VIKTOR CHERNOMYRDIN ORDERED THE GOVERNMENT TO BEGIN PAYING BILLIONS OF RUBLES IN BACK WAGES TO COAL MINERS SCATTERED STRIKES BY THE UNION WORKERS IN SIBERIA IN RECENT WEEKS HAD CUT OUTPUT THE ORDER LAST FRIDAY FOR THE MINERS MANY OF WHOM HAVEN'T BEEN PAID SINCE NOVEMBER CAME A DAY AFTER A PROMISE TO PAY BILLIONS IN BACK WAGES TO COMMUNICATIONS WORKERS TO SETTLE A ONE DAY STRIKE THAT HALTED RADIO AND TELEVISION BROADCASTS MEANWHILE THE TIMBER INDUSTRY ALSO DEMANDING PAYCHECKS THREATENED TO HALT SHIPMENTS STARTING NEXT MONDAY IN RECENT WEEKS MR. CHERNOMYRDIN ALSO HAS APPROVED PAYMENTS TO DEFENSE AND AGRICULTURAL WORKERS MANY REFORMERS IN PARLIAMENT HAVE ACCUSED THE CABINET OF KNUCKLING UNDER TO INFLATIONARY SPENDING BUT OFFICIALS INSISTED THE BUDGET DEFICIT WILL BE CUT THIS YEAR REDUCING THE NEED FOR CENTRAL BANK FINANCING THAT FUELS INFLATION NEGOTIATIONS ON A CONTRACT FOR THE THREE POINT TWO MILLION MEMBERS OF GERMANY'S I. G. METALL METALWORKERS UNION BROKE DOWN FRIDAY AFTER TWO WEEKS OF BRIEF WARNING STRIKES THE GESAMTMETALL INDUSTRIAL EMPLOYER GROUP CITED DISAGREEMENT ABOUT WORKING HOURS THE UNION DECLARING FURTHER TALKS POINTLESS NEXT MONDAY WILL SET A DATE FOR A STRIKE VOTE GESAMTMETALL OFFERED JOB SECURITY PROPOSALS SUCH AS LETTING COMPANIES EXPAND OR REDUCE THE WORKWEEK AS NEEDED I. G. METALL SAID IT OFFERED WORKWEEK FLEXIBILITY BUT EMPLOYERS INSISTED ON A PAY FREEZE AND VACATION REDUCTIONS THE UNION HAS SOUGHT WAGE BOOSTS BETWEEN FIVE POINT FIVE PERCENT AND SIX PERCENT EVEN ON WORKDAYS MANY GREEKS PARTY IN ATHENS NIGHTCLUBS UNTIL SEVEN A. M. THE GOVERNMENT HOPING TO IMPROVE PRODUCTIVITY INTRODUCED AN ORDER FOR CLUBS TO SHUT AT TWO A. M. THE COUNTRY'S FIRST OFFICIAL CLOSING TIME THE PUBLIC ORDER MINISTRY WANTS TO REDUCE CRIME AND PUT AN END TO STUDENTS' SLEEPINESS AND PUBLIC OFFICIALS' ABSENTEEISM DUE TO HANGOVERS CLUBS SERVING TEENAGERS OR VIOLATING THE CLOSING HOUR COULD LOSE THEIR LICENSES OPPONENTS SAID THE ORDER ISN'T ENFORCEABLE AND WARNED THE MINISTRY THAT IT COULDN'T MAKE PEOPLE GO TO BED EARLY CLUB OWNERS SAID THE ORDER WOULD RUIN THEM FINANCIALLY AUSTRALIA HAS AGREED TO STOP USING EUROPEAN GEOGRAPHICAL NAMES SUCH AS CHAMPAGNE AND BURGUNDY FOR ITS WINES IN RETURN FOR GREATER ACCESS TO EUROPEAN UNION MARKETS THE DEAL IS THE FIRST BETWEEN THE E. U. AND A COMPETING WINE PRODUCER USING ITS PLACE NAMES IN AUSTRALIA'S RAPIDLY GROWING WINE INDUSTRY EXPORTS SOARED TO TWO HUNDRED FORTY FOUR MILLION DOLLARS IN NINETEEN NINETY THREE FROM FIFTEEN MILLION DOLLARS SEVEN YEARS EARLIER THE INDUSTRY EXPECTS ANNUAL EXPORTS TO TOTAL SEVEN HUNDRED MILLION DOLLARS BY THE YEAR TWO THOUSAND MOSTLY TO THE TWELVE COUNTRY EUROPEAN TRADE BLOC ABOUT TEN BILLION DOLLARS A YEAR IN RUSSIAN EXPORT EARNINGS OR TWENTY THREE PERCENT OF LAST YEAR'S FORTY THREE BILLION DOLLAR TOTAL HASN'T RETURNED TO THE COUNTRY THE GOVERNMENT SAID LAST FALL RUSSIA INTRODUCED A SYSTEM TO TIGHTEN CONTROL OF EXPORT EARNINGS IN AN EFFORT TO PREVENT CAPITAL FLIGHT ESTIMATED AT AS MUCH AS FIFTEEN BILLION DOLLARS A YEAR BECAUSE OF POLITICAL AND ECONOMIC INSTABILITY MANY RUSSIANS HAVE MOVED ASSETS TO SAFER INVESTMENTS ABROAD EXPORTERS CAN EASILY SHELTER CAPITAL IN OTHER COUNTRIES BY UNDERREPORTING THE VALUE OF GOODS SOLD THERE AND DEPOSITING THE DIFFERENCE IN FOREIGN ACCOUNTS TO PROTEST UNPAID WAGES ABOUT THREE THOUSAND RAILWAY REPAIR WORKERS IN ROMANIA STONED WINDOWS OF THE GOVERNMENT TRANSPORT AGENCY'S HEADQUARTERS IN BUCHAREST WHICH RIOT POLICE DEFENDED THE DEMONSTRATION WAS A PRELUDE TO SEVERAL MAJOR STRIKES PLANNED FOR THIS WEEK SOME MAINTENANCE EMPLOYEES WEREN'T PAID LAST WEEK BECAUSE THE STATE RAILWAY HADN'T PAID THEIR COMPANY ONE POINT SIX MILLION DOLLARS FOR WORK CONDUCTED IN THE PAST TWO MONTHS THE BUYING POWER OF ROMANIANS' WAGES AVERAGING LESS THAN FIFTY DOLLARS A MONTH HAS ERODED AS INFLATION LAST YEAR RAN AT ALMOST THREE HUNDRED PERCENT DESPITE SOME STRONG RESISTANCE THE EUROPEAN PARLIAMENT HAS ADOPTED AN AMENDED EUROPEAN COMMISSION PROPOSAL TO PROMOTE THE USE OF MOTOR FUELS DERIVED FROM AGRICULTURAL CROPS THE PLAN WOULD SET UP A PREFERENTIAL TAX SYSTEM FOR ALTERNATIVE FUELS SUCH AS METHANOL BIOETHANOL AND VEGETABLE OILS NOW FAR MORE EXPENSIVE THAN CONVENTIONAL FUELS PROPONENTS SAID THE PLAN WOULD HELP STEM THE LOSS OF FARM JOBS REDUCE THE E. U.'S DEPENDENCE ON IMPORTED OIL AND CUT SMOG AND CARBON MONOXIDE POLLUTION BUT OTHER MEMBERS OF THE E. U. ASSEMBLY WEREN'T SO SURE SOME QUESTIONED THE MEASURE'S ENVIRONMENTAL CREDENTIALS ARGUING THAT BIOFUELS WOULD INCREASE OTHER FORMS OF AIR POLLUTION AND COMPOUND WATER POLLUTION CAUSED BY FERTILIZERS SOME PARLIAMENT MEMBERS GRIPED THAT THE PROPOSAL WAS BILLED AS HIGH MINDED BUT AMOUNTED TO A SUBSIDY FOR FARMERS AT LEAST ONE HUNDRED FIFTY THOUSAND WORKERS FROM ABOUT FIFTY COMPANIES IN INDONESIA STAGED PROTESTS IN NINE CITIES DEMANDING A HIGHER MINIMUM WAGE AND THE RELEASE OF ARRESTED UNION LEADERS THE GOVERNMENT RECOGNIZES JUST ONE LABOR UNION BULGARIA FAVORS JOINING WITH ROMANIA TO BUILD TWO BRIDGES ACROSS THE DANUBE RIVER A POTENTIAL TWO HUNDRED FORTY MILLION DOLLARS JOB THE ONLY BRIDGE LINKING THE TWO COUNTRIES HAS TRAFFIC JAMS IN A BID TO GET NEEDED TECHNOLOGY FOR ITS SPACE PROGRAM BRAZIL AGREED TO BE BOUND BY INTERNATIONAL CONTROLS ON CERTAIN SENSITIVE MISSILE RELATED EXPORTS A FOREIGN MINISTRY COMMUNIQUE ADDRESSED TO THE TWENTY FIVE MEMBERS OF THE MISSILE TECHNOLOGY CONTROL REGIME SAID BRAZIL WAS READY TO FOLLOW THE GROUP'S RULES THE GROUP WHICH INCLUDES THE U. S. AND OTHER MAJOR INDUSTRIAL POWERS WAS CREATED IN NINETEEN EIGHTY SEVEN TO CURB THE RISK OF PROLIFERATION OF MISSILES AND OTHER WEAPONS OF MASS DESTRUCTION ANTONIO GUERREIRO CHIEF OF THE MINISTRY'S SENSITIVE TECHNOLOGIES DEPARTMENT SAID BRAZIL NOW EXPECTS TO GET HELP FOR ITS SPACE PROGRAM BRAZIL'S SPACE INDUSTRY PRODUCES SATELLITES BUT LACKS A TRIGGERING DEVICE TO PUT THEM IN ORBIT THE U. S. FRANCE RUSSIA AND CHINA HAVE DENIED BRAZIL THE TECHNOLOGY LARGELY BECAUSE OF BRAZIL'S RELUCTANCE TO ABIDE BY EXPORT CONTROL RULES MR. GUERREIRO SAID BRAZIL COULD PRODUCE MEDIUM RANGE OR SHORT RANGE MISSILES BUT IS QUOTE NOT INTERESTED IN THIS TYPE OF ARMS QUOTE OUR SPACE PROGRAM IS DESIGNED TO SERVE PEACEFUL PURPOSES AND ITS GOAL IS TO BUILD ITS OWN SATELLITE LAUNCHER HE SAID TOMMY MOE OF THE U. S. IN THE NARROWEST VICTORY EVER IN OLYMPIC ALPINE SKIING WON THE DOWNHILL RACE BY FOUR HUNDREDTHS OF A SECOND OVER WORLD CUP LEADER KJETIL ANDRE AAMODT OF NORWAY QUOTE I DIDN'T EVEN HAVE ANY THOUGHTS IN MY MIND THAT I WAS GOING TO WIN QUOTE SAID MR. MOE THE SECOND AMERICAN IN TEN YEARS TO WIN THE OLYMPIC DOWNHILL GOLD MEDAL I JUST FIGURED HEY I'LL SKI THE BEST I CAN MR. MOE WHO TURNS TWENTY FOUR IN FOUR DAYS RACED DOWN THE COURSE IN ONE MINUTE FORTY FIVE POINT SEVEN FIVE SECONDS MR. AAMODT FINISHED IN ONE FORTY FIVE CANADA'S ED PODIVINSKY WITH A TIME OF ONE FORTY FIVE TOOK THE BRONZE DEFENDING OLYMPIC CHAMPION PATRICK ORTLIEB OF AUSTRIA WAS FOURTH AND FIVE TIME WORLD CUP OVERALL CHAMPION MARC GIRARDELLI OF LUXEMBOURG PLACED FIFTH TODAY WAS THE BIG DAY I KNEW I COULD GET IN THE TOP SIX AND ANYTHING BETTER WOULD BE WONDERFUL I'M REALLY EXCITED NOW SAID MR. MOE WHO HADN'T WON A DOWNHILL IN MAJOR INTERNATIONAL MEET SINCE THE NINETEEN EIGHTY NINE WORLD JUNIOR CHAMPIONSHIPS MANUELA DI CENTA OF ITALY TOOK THE LEAD EARLY AND HELD ON TO BEAT TWO RUSSIANS IN THE WOMEN'S FIFTEEN KILOMETER FREESTYLE CROSS COUNTRY SKI RACE IT WAS THE FIRST MAJOR TITLE FOR MS. DI CENTA THIRTY ONE YEARS OLD WHO COVERED THE COURSE IN THIRTY NINE MINUTES FORTY FOUR POINT FIVE SECONDS LYUBOV EGOROVA OF RUSSIA WHO WON THREE GOLD AND TWO SILVER MEDALS AT THE NINETEEN NINETY TWO ALBERTVILLE GAMES FINISHED SECOND IN FORTY ONE OH THREE NINA GAVRILUK OF RUSSIA TOOK THE BRONZE MEDAL IN FORTY ONE TEN MS. DI CENTA LED MS. EGOROVA WHO IS TIED FOR THE LEAD IN THE WORLD CUP STANDINGS AFTER WINNING TWO OF FIVE RACES BY MORE THAN THIRTY EIGHT SECONDS AT THE SEVEN POINT ONE KILOMETER CHECKPOINT SHE ADDED THAT DURING THE RACE I KNEW I WAS DOING WELL I GOT THE INTERMEDIATE TIMES DURING THE RACE AND I KNEW I WAS GOING FAST LAURA MCCABE OF PARK CITY UTAH WAS THIRTY FOURTH OUT OF FIFTY THREE FINISHERS FOR THE BEST AMERICAN FINISH JOHANN OLAV KOSS OF NORWAY WON THE GOLD MEDAL IN THE MEN'S FIVE THOUSAND METER SPEED SKATING RACE WITH A WORLD RECORD TIME OF SIX MINUTES THIRTY FOUR POINT NINE SIX SECONDS HE TOPPED HIS OWN WORLD RECORD OF SIX THIRTY FIVE SET ON THE SAME TRACK IN DECEMBER AND THE OLYMPIC RECORD OF SIX FORTY TWO POSTED EARLIER IN THE EVENT BY HIS NORWEGIAN TEAMMATE KJELL STORELID WHO WAS SECOND THIRD WAS RINTJE RITSMA OF THE NETHERLANDS IN SIX FORTY THREE THE U. S. TEAM CAME FROM TWO GOALS BEHIND IN THE FINAL PERIOD TO TIE FRANCE FOUR TO FOUR PETER LAVIOLETTE AND BRIAN ROLSTON SCORED WITHIN THREE MINUTES OF EACH OTHER TO DRAW EVEN IN THE POOL B. MATCHES SWEDEN AND SLOVAKIA TIED FOUR TO FOUR AND CANADA ROUTED ITALY SEVEN TO TWO GEORG HACKL OF GERMANY THE DEFENDING OLYMPIC CHAMPION IS ONLY ZERO POINT ZERO ONE OF A SECOND AHEAD OF HIS ARCHRIVAL MARKUS PROCK OF AUSTRIA THROUGH TWO RUNS OF THE MEN'S SINGLE LUGE MR. HACKL SLID THE COURSE IN FIFTY POINT TWO NINE SIX SECONDS ON HIS FIRST RUN AND FOLLOWED THAT WITH THE BEST TIME OF THE SECOND RUN FIFTY POINT FIVE SIX OH ARNOLD ZOGGELER OF ITALY HAD THE THIRD BEST TIMES ON BOTH RUNS TO REMAIN IN CONTENTION ZERO POINT ONE EIGHT SIX OF A SECOND BEHIND MR. HACKL LURKING IN FOURTH AND BIDDING TO BECOME THE FIRST MALE U. S. LUGER TO WIN AN OLYMPIC MEDAL WAS DUNCAN KENNEDY HE IS ZERO POINT THREE SIX FOUR BEHIND MR. HACKL THE FINAL TWO RUNS ARE TODAY EKATERINA GORDEEVA AND SERGEI GRINKOV OF RUSSIA WON THE TECHNICAL PROGRAM WORTH ONE THIRD OF THE TOTAL MARK IN THE PAIRS EVENT THE NINETEEN EIGHTY EIGHT GOLD MEDALISTS EDGED THE NINETEEN NINETY TWO OLYMPIC WINNERS NATALIA MISHKUTIENOK AND ARTUR DMITRIEV ALSO OF RUSSIA THIRD WERE NINETEEN NINETY THREE WORLD CHAMPIONS ISABELLE BRASSEUR AND LLOYD EISLER OF CANADA AMERICAN PAIRS JENNI MENO OF WESTLAKE OHIO AND TODD SAND OF THOUSAND OAKS CALIFORNIA WERE SIXTH THE FREE SKATING FINAL IS TOMORROW AGRICULTURE SECRETARY MIKE ESPY SAID THE GOVERNMENT WOULD RESUME FORECLOSING ON FARM LOANS WITH THE START OF A PROGRAM TO ROOT OUT WHAT HIS DEPARTMENT TERMED SHORTCOMINGS OF THE LENDING PROGRAM QUOTE WE WANT TO ANALYZE WHY LOANS ARE IN TROUBLE ELIMINATE PROCEDURAL ERRORS AND IMPLEMENT A TRACKING SYSTEM FOR NEW LOANS QUOTE SAID MICHAEL DUNN HEAD OF THE AGRICULTURE DEPARTMENT'S FARMERS HOME ADMINISTRATION SECRETARY ESPY SUSPENDED FORECLOSURES OF UNPAID LOANS LAST MARCH AND BEGAN A REVIEW OF LOAN PRACTICES THE FOCUS NOW ACCORDING TO MR. DUNN IS TO COLLECT AS MUCH AS WE CAN FROM OUTSTANDING LOANS HE ADDED THE DEPARTMENT EXPECTS TO HAVE THOSE DELINQUENT LOANS NOT ON APPEAL OR UNDER LITIGATION MADE CURRENT WITHIN TWO YEARS THE FARMERS HOME ADMINISTRATION HAS COME UNDER FIRE FOR FAILING TO SEEK REPAYMENT FROM FARMERS AND RANCHERS ESPECIALLY WEALTHY ONES WHO HAVE OUTSTANDING FEDERAL LOANS RECENT LEGISLATION BANNED THE AGENCY FROM MAKING LOANS OF MORE THAN FIVE HUNDRED THOUSAND DOLLARS NORTHWEST AIRLINES SAID JANUARY TRAFFIC SLIPPED FOUR POINT FIVE PERCENT TO FOUR POINT THREE NINE BILLION REVENUE PASSENGER MILES FROM FOUR POINT SIX OH BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE CARRIER'S LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE TO SIXTY TWO POINT THREE PERCENT FROM SIXTY ONE POINT TWO PERCENT HOWEVER THE IMPROVEMENT REFLECTS A DECLINE IN OVERALL CAPACITY THE CLINTON ADMINISTRATION IS READYING A BILL THAT WOULD REQUIRE TELECOMMUNICATIONS COMPANIES TO MAKE SURE THAT LAW ENFORCEMENT OFFICIALS CAN CONTINUE TO MONITOR CONVERSATIONS ON THEIR NEW SYSTEMS AS COMMUNICATIONS TECHNOLOGY EVOLVES THE DRAFT BILL WHICH WOULD AFFECT THE CONVERGING TELEPHONE COMPUTER AND CABLE TELEVISION INDUSTRIES IS BEING CIRCULATED AMONG THE FEDERAL BUREAU OF INVESTIGATION THE COMMERCE DEPARTMENT AND THE NATIONAL SECURITY COUNCIL A SIMILAR BILL WAS PROPOSED BY THE BUSH ADMINISTRATION BUT FELL VICTIM TO OPPOSITION FROM TELECOMMUNICATIONS COMPANIES AND CIVIL LIBERTIES GROUPS A CLINTON ADMINISTRATION OFFICIAL SAID THE NEW BILL DESCRIBED IN SATURDAY'S NEW YORK TIMES WOULD EASE SEVERAL CONCERNS RAISED BY THESE GROUPS FOR EXAMPLE THE OFFICIAL SAID THE NEW BILL WOULD EXEMPT SEVERAL KINDS OF COMMUNICATIONS THAT WERE INCLUDED IN THE EARLIER BILL INCLUDING IN HOUSE TELEPHONE COMMUNICATIONS AND MOST FORMS OF ELECTRONIC MAIL LAW ENFORCEMENT AUTHORITIES WOULD BE REQUIRED TO GET COURT ORDERS TO MONITOR CONVERSATIONS ON NONCELLULAR CORDLESS TELEPHONES A PROTECTION THAT DOESN'T EXIST TODAY THE OFFICIAL SAID LITTLEFIELD ADAMS AND COMPANY SAID IT DECIDED TO CANCEL A MARKETING AGREEMENT WITH AN OPERATOR OF MEDICAL AND CHIROPRACTIC CLINICS MAINTAINING THAT THE AGREEMENT HAD CONFUSED INVESTORS THE MOVE WILL FORCE LITTLEFIELD BASED IN SAN ANTONIO TO REDUCE THE EARNINGS IT REPORTED FOR THE FIRST QUARTER OF NINETEEN NINETY THREE BY FIVE POINT TWO MILLION DOLLARS THE COMPANY SAID FOLLOWING THE ANNOUNCEMENT TRADING IN LITTLEFIELD ADAMS SHARES RESUMED AFTER BEING SUSPENDED FOR TWO DAYS AT THE COMPANY'S REQUEST FRIDAY THE STOCK TUMBLED THREE DOLLARS OR FIFTEEN PERCENT TO SIXTEEN POINT THREE SEVEN FIVE DOLLARS A SHARE IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE LITTLEFIELD A MAKER OF SPORTSWEAR AND SOME MEDICAL PRODUCTS SAID IT DECIDED TO RESCIND ITS YEAR OLD AGREEMENT WITH AMERICARE HEALTH GROUP INCORPORATED EAST ISLIP N. Y. OFFICIALS OF AMERICARE COULDN'T BE REACHED FOR COMMENT ITS SHARES AREN'T WIDELY TRADED HURT BY HIGH COSTS OF SALES AND ADMINISTRATION AND SLOW TOMATO SALES CALGENE INCORPORATED REPORTED A FISCAL SECOND QUARTER LOSS FOR THE QUARTER ENDED DECEMBER THIRTY FIRST THE BIOTECHNOLOGY CONCERN IN DAVIS CALIFORNIA POSTED A NET LOSS OF TEN POINT EIGHT MILLION DOLLARS OR FORTY FOUR CENTS A SHARE COMPARED WITH A YEAR EARLIER LOSS OF SIX POINT THREE MILLION DOLLARS OR TWENTY EIGHT CENTS A SHARE REVENUE ROSE TO SIX POINT THREE MILLION DOLLARS FROM FOUR POINT FOUR MILLION DOLLARS FOR THE SIX MONTHS CALGENE POSTED A LOSS OF TWENTY ONE POINT TWO MILLION DOLLARS OR EIGHTY SIX CENTS A SHARE ON REVENUE OF TWELVE POINT FIVE MILLION DOLLARS COMPARED WITH A YEAR EARLIER NET LOSS OF ELEVEN POINT ONE MILLION DOLLARS OR FIFTY ONE CENTS A SHARE ON REVENUE OF NINE POINT SEVEN MILLION DOLLARS CALGENE HAS SAID IT EXPECTS TO REPORT A FISCAL NINETEEN NINETY FOUR LOSS GREATER THAN ITS NINETEEN NINETY THREE LOSS OF TWENTY FIVE POINT SIX MILLION DOLLARS OR ONE DOLLAR AND THIRTEEN CENTS A SHARE BECAUSE OF DELAYS IN GETTING FOOD AND DRUG ADMINISTRATION APPROVAL FOR ITS GENETICALLY ENGINEERED FLAVR SAVR TOMATO THE NEW YORK STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING THREE INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED TWELVE NEW LISTINGS INCLUDING TEN INITIAL OFFERINGS THE AMERICAN STOCK EXCHANGE BEGAN TRADING TWO INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING AMLI RESIDENTIAL PROPERTIES INCORPORATED CHICAGO UNDER A. M. L. AND SUMMIT PROPERTIES TRUST CHARLOTTE N. C. SMT BOTH REAL ESTATE INVESTMENT TRUSTS ARE INITIAL PUBLIC OFFERINGS ALSO THE BIG BOARD BEGAN TRADING AMERICAN DEPOSITORY SHARES OF ISTITUTO MOBILIARE ITALIANO COMPANY ROME A LARGE ITALIAN BANKING GROUP I. M. I. WESTERN NATIONAL CORPORATION CARMEL INDIANA A LIFE INSURANCE COMPANY JOINED THE EXCHANGE AS AN INITIAL OFFERING RESULTING FROM A CARVE OUT FROM CONSECO INCORPORATED NASDAQ ADDED THE FOLLOWING INITIAL OFFERINGS TO ITS NATIONAL MARKET SYSTEM CONSEP INCORPORATED BEND OREGON A MANUFACTURER OF PEST CONTROL PRODUCTS CSEP DAKTRONICS INCORPORATED BROOKINGS S. D. A MANUFACTURER OF INFORMATION DISPLAY SYSTEMS DAKT ELTRON INTERNATIONAL INCORPORATED CHATSWORTH CALIFORNIA A MANUFACTURER OF BAR CODE LABEL PRINTERS SOFTWARE AND RELATED ACCESSORIES ELTN INTERNATIONAL POST GROUP INCORPORATED NEW YORK A PROVIDER OF POST PRODUCTION SERVICES POST PROCEPT INCORPORATED CAMBRIDGE MASSACHUSETTS A DEVELOPER OF BIOLOGICAL RELATED TECHNOLOGY PRCT SIGMATRON INTERNATIONAL INCORPORATED ELK GROVE VILLAGE ILLINOIS A MANUFACTURER OF ELECTRONIC COMPONENTS AND OTHER PRODUCTS SGMA SONIC SOLUTIONS SAN RAFAEL CALIFORNIA A MANUFACTURER OF DIGITIAL AUDIO WORKSTATIONS SNIC TATHAM OFFSHORE INCORPORATED HOUSTON AN INDEPENDENT ENERGY COMPANY TOFF TRISM INCORPORATED FORT WORTH TEXAS A TRUCKING COMPANY TRSM AND WEBCO INDUSTRIES INCORPORATED SAND SPRINGS CALIFORNIA A MANUFACTURER OF CARBON STEEL TUBING AND STAINLESS STEEL TUBING AND PIPES WBCO NASDAQ ALSO BEGAN TRADING INTERCEL INCORPORATED LANETT ALABAMA A CELLULAR TELEPHONE SYSTEM OPERATOR ICEL AND LEASEWAY TRANSPORTATION CORPORATION BEACHWOOD OHIO A PROVIDER OF TRUCKING AND RELATED DISTRIBUTION SERVICES LSWY AMEX BEGAN TRADING AMERICAN PAGING INCORPORATED A UNIT OF TELEPHONE AND DATA SYSTEMS INCORPORATED MINNEAPOLIS A PROVIDER OF ONE WAY WIRELESS MANAGING SERVICES APP AN INITIAL OFFERING THE AMEX ALSO BEGAN TRADING THE INITIAL OFFERING OF COMMON SHARES AND CONVERTIBLE SUBORDINATED DEBENTURES OF PACIFIC GULF PROPERTIES INCORPORATED NEWPORT BEACH CALIFORNIA THE COMPANY WAS ORGANIZED TO CONTINUE THE MULTIFAMILY AND INDUSTRIAL PROPERTY OPERATIONS OF SANTA ANITA REALTY ENTERPRISES INCORPORATED AMEX AND THE CHICAGO BOARD OPTIONS EXCHANGE WILL BEGIN TRADING OPTIONS ON THE A. D. R.'S OF THE FOLLOWING COMPANIES ON FEBRUARY FOURTEENTH TEVA PHARMACEUTICAL INDUSTRIES LIMITED YPF SOCIEDAD ANONIMA AND GRUPO TRIBASA S. A. AMEX AND THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING OPTIONS ON ALUMAX INCORPORATED AND ON REGENERON PHARMACEUTICALS INCORPORATED AMEX'S EMERGING COMPANY MARKETPLACE BEGAN TRADING CLASS A COMMON SHARES OF CHESAPEAKE BIOLOGICAL LABORATORIES INCORPORATED THE COMPANY PREVIOUSLY TRADED OVER THE COUNTER THE C. B. O. E. ALSO BEGAN TRADING TRADING OPTIONS ON THE A. D. R.'S OF ARACRUZ CELULOSE S. A. COCA COLA FEMSA S. A. CONSORCIO G. GRUPO DINA C. B. O. E. BEGAN TRADING OPTIONS ON CENCALL COMMUNICATIONS CORPORATION AND WILL BEGIN TRADING OPTIONS ON VIACOM INCORPORATED CLASS B. ON MONDAY FEBRUARY FOURTEENTH THE SEVERE SNOWSTORM THAT SOCKED THE EASTERN SEABOARD FRIDAY CAUSED MOST MAJOR STOCK AND OTHER EXCHANGES TO CLOSE EARLY TRADING AT THE NEW YORK AND AMERICAN STOCK EXCHANGES AND ON THE NASDAQ STOCK MARKET ENDED AT TWO THIRTY P. M. ONE AND ONE HALF HOURS EARLY THE PACIFIC EXCHANGE CLOSED AT THREE P. M. EASTERN TIME THE CHICAGO BOARD OPTIONS EXCHANGE THE COFFEE SUGAR AND COCOA EXCHANGE COMMODITY EXCHANGE AND THE NEW YORK MERCANTILE EXCHANGE ALSO HAD SHORTENED SESSIONS THE CHICAGO MERCANTILE EXCHANGE FOLLOWED NEW YORK'S LEAD AND CLOSED ITS STOCK INDEX FUTURES AND OPTIONS MARKETS ABOUT ONE AND ONE HALF HOURS EARLY BUT THE CHICAGO STOCK EXCHANGE PUT OUT A RELEASE TO SAY IT WAS THE ONLY U. S. STOCK EXCHANGE TO STAY OPEN FOR NORMAL BUSINESS HOURS I NOTED THAT AN INTERNATIONAL PAGE ARTICLE ON JANUARY FOURTEENTH SUGGESTED THAT BRITAIN WAS ENGAGED IN INDUSTRIAL ESPIONAGE AGAINST THE U. S. THIS IS NOT THE CASE AND I AM WRITING TO SET THE RECORD STRAIGHT JACK FALVEY IN HIS JANUARY TENTH MANAGER'S JOURNAL CONFUSES THE MISUSE OF A TOOL WITH PROBLEMS IN THE TOOL THERE IS NO QUESTION THAT ANY SALES MANAGER WORTH HIS SALT NEEDS TO TAKE TIME OUT TO VISIT CLIENTS PROSPECTS AND SALES OFFICES WITH HIS SALES PEOPLE IF YOU NEVER SEE SALESPEOPLE IN ACTION IT'S VERY DIFFICULT TO HELP THEM CLOSE A SALE HOWEVER IT IS ALSO USEFUL TO PROVIDE THOSE SALESPEOPLE WITH TOOLS THAT HELP THINGS LIKE CELLULAR PHONES OFFICE RESOURCES AND YES SOFTWARE THAT HELPS AUTOMATE THE SELLING PROCESS WHILE MR. FALVEY MAY KNOW WONDERFUL SALESPEOPLE WHO KEEP MORE THAN FIVE HUNDRED PROSPECT NAMES ADDRESSES AND INTERESTS IN THEIR HEADS THE REST OF US NEED SOME ASSISTANCE PROVIDING INFORMATION AT THEIR FINGERTIPS THAT ALLOWS SALESPEOPLE TO REMEMBER NOT ONLY THE LAST SALE BUT ALSO THE PROSPECT'S SPOUSE'S NAME INTEREST IN SPORTS OR SOMETHING ELSE AND PERHAPS THE BEST TIME TO CONTACT THE CLIENT SUCH THINGS CAN GREATLY IMPROVE THE PRODUCTIVITY OF THE SALES FORCE AND WHAT HAPPENS IF THE SALESPERSON IS OUT OF THE OFFICE WITH AUTOMATION ALL THE INFORMATION ABOUT THE CLIENT IS AVAILABLE TO ANYONE WHO NEEDS IT WHEN A SALESPERSON LEAVES AUTOMATION PROVIDES FOR CONTINUITY IN ADDITION WITH AUTOMATION SALES MANAGEMENT CAN SPOT TRENDS BOTH GOOD AND BAD MUCH MORE QUICKLY AND PRECISELY THE FACT THAT THESE COMPUTER SYSTEMS ARE OFTEN MISUSED BOTH BY SALES PEOPLE AND BY SALES MANAGERS IS NOT A DEFECT IN THE SYSTEMS BUT RATHER A CLEAR INDICATION OF LACK OF TRAINING ON AND UNDERSTANDING OF THESE SYSTEMS AS AN INVESTMENT BANKER I'VE HAD MY SHARE OF MERGERS AND ACQUISITIONS BUT FOR SHEER EXCITEMENT METICULOUS PLANNING HIGH INTEREST AND DIVIDENDS OF SATISFACTION NOTHING BEATS MERGERS OF THE HEART HELPING PEOPLE FIND ONE ANOTHER AND GET MARRIED IS MY PASSION MATCHMAKING CALLS FOR THE SAME TALENT YOU NEED TO MAKE IT BIG ON WALL STREET AN APPETITE FOR RESEARCH IMAGINATION INTUITION HARD WORK AND CHUTZPAH AND THE REWARDS ARE GREAT TOO WHERE DID I PICK UP THIS VIRUS WAY BACK IN COLLEGE AS A PRANK I TOLD MY SHY FRIEND FRED THAT ONE OF THE GIRLS IN ENGLISH ONE HUNDRED ONE WAS DYING TO MEET HIM HE SHOCKED ME BY SAYING QUOTE GREAT SET UP A DATE QUOTE NOW I HAD TO COME UP WITH A GIRL THERE WERE FOURTEEN IN THE CLASS WHICH ONE WOULD HE LIKE WHICH ONE MIGHT LIKE HIM FINALLY I PICKED ONE WITH THE RIGHT PERSONALITY AND LOOKS AND TOLD HER MY FRIEND HAD A CRUSH ON HER SHE WAS INTRIGUED AND AMUSED AND I INTRODUCED THEM THAT DAY AFTER CLASS IT WAS SPONTANEOUS COMBUSTION TOTALLY SMITTEN WITH EACH OTHER THEY JABBERED AWAY OBLIVIOUS OF ME AND THE REST OF THE WORLD DID I LOSE A FRIEND NO I REALLY GAINED A NEW ONE THEY'RE HAPPILY MARRIED AND STILL JABBERING UP A STORM I WAS HOOKED MARRIAGE BECAME MY THING DRUNK WITH THE AWESOME POWER OF MATCHMAKING I LOOKED AROUND AND STARTED TO MATCH EVERY LIKELY COMBINATION AMAZINGLY SOME OF THEM WORKED WHAT A RUSH OF PLEASURE WHEN IT HAPPENS HERE'S THE SECRET TO MATCHMAKING DEEP DOWN MOST SINGLES ARE LONELY AND READY FOR ROMANCE EVEN IF THEY DON'T ADMIT IT THERE ARE LITERALLY THOUSANDS OF POTENTIAL SPOUSES OUT THERE FOR EVERYONE THE MATCHMAKING JOB IS TO HELP PEOPLE FIND EACH OTHER AND THEN LET THE HORMONES AND GENETIC CODE GO TO WORK IF YOU ARE TEMPTED TO FOLLOW IN MY FOOTSTEPS AS A PERSONAL MERGERS SPECIALIST KEEP THE FOLLOWING TIP IN MIND THE GREAT ADVENTURE OF MARRIAGE OFTEN BEGINS WITH A SINGLE STEP THE BLIND DATE ALAS MANY SINGLES AVOID THE BLIND DATE AT ALL COSTS OH THE AGONY AND EMBARRASSMENT IMAGINE BEING CONDEMNED TO SHARING A DRINK OR LUNCH OR EVEN A WHOLE EVENING WITH THE WRONG PERSON I'M REMINDED OF AN OLD STORY THERE WAS ONCE A VERY RELIGIOUS MAN WHO WAS BARELY ABLE TO SUPPORT HIS SICK WIFE AND SEVEN CHILDREN HE WAS PIOUS AND PRAYED EVERY DAY BUT ONE DAY HE REACHED THE END OF HIS PATIENCE DEAR GOD I'VE BEEN A GOOD MAN ALL THESE YEARS AND DEVOUT TOO I PRAYED LIT CANDLES HELPED MY FELLOW MAN I GAVE TO THE LESS FORTUNATE WHAT WOULD HAVE BEEN SO TERRIBLE IF YOU HAD HELPED ME A LITTLE FOR YEARS I PRAYED FOR A LITTLE GOOD FORTUNE COULDN'T YOU HAVE SEEN TO IT THAT I AT LEAST WON A LOTTERY THERE WAS A GREAT BEAM OF LIGHT FROM THE SKY AND A VOICE FILLED THE ROOM AH MAX MAX COULDN'T YOU AT LEAST BUY A TICKET THE LESSON NEVER TURN DOWN A BLIND DATE OR YOU COULD MISS YOUR LUCKY TICKET IN THE LOTTERY OF ROMANCE HOW DO YOU FULFILL THE DREAM THAT SO MANY SINGLES HAVE OF FINDING THEIR ONE AND ONLY THAT EPHEMERAL STATUS FLOWERS WITH MARRIAGE THE JOINT VENTURE OF MARRIAGE CREATES A BANK OF MEMORIES PLEASURES AND EXPERIENCES THAT NO ONE ELSE SHARES WITH YOU IT MAKES YOUR SPOUSE UNIQUE TRULY A ONE AND ONLY A GRATEFUL GRANDMOTHER AT HER GRANDCHILD'S WEDDING ONCE WHISPERED IN MY EAR QUOTE THANK YOU FOR THIS KIND OF WORK YOU'LL GO STRAIGHT TO HEAVEN WHEN YOUR TIME COMES NO CORPORATE MERGER COULD EVER MATCH THAT BONUS MR. FISHER IS PRESIDENT OF A. D. GILHART AND COMPANY INVESTMENT BANKERS HIS CURRENT BOOK IS HAVEN'T YOU BEEN SINGLE LONG ENOUGH WILDCAT PUBLISHERS COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE GREG GUMBEL GOT OFF TO A SMOOTH START AS AN OLYMPIC T. V. HOST SOME OF HIS COLLEAGUES WERE LESS NIMBLE ED BRADLEY MOSTLY COVERED THE FEELINGS BEAT RATHER THAN DISPENSE ANY EXPERTISE ON WINTER SPORTS GLEANED AS A PART TIME RESIDENT OF ASPEN AT ONE POINT HE REMARKED QUOTE IT'S SO PALPABLE YOU CAN FEEL IT QUOTE CHARLES KURALT APPEARED SEVERAL TIMES SATURDAY MAKING LESS SENSE ON EACH OCCASION JIM NANTZ AND ANDREA JOYCE WERE HANDED THE THANKLESS TASK SUNDAY MORNING OF HOSTING A SPORTS SHOW WITH HARDLY ANY SPORT SO DETERMINED WAS C. B. S. TO SAVE ITS BEST PICTURES FOR PRIME TIME THAT MR. NANTZ AND MS. JOYCE COULD OFFER ONLY THE SWEDEN SLOVAKIA HOCKEY GAME LOTS OF CANNED FOOTAGE AND A FEW SNIPPETS OF OTHER EVENTS THEY TOLD VIEWERS THAT AMERICAN TOMMY MOE HAD PULLED A MAJOR UPSET BY WINNING THE MEN'S DOWNHILL BUT COULDN'T SHOW IT STRANGELY SOMETIMES THEY WARNED VIEWERS TO LEAVE THE ROOM IF THEY DIDN'T WANT TO KNOW THE RESULTS OTHER TIMES THEY DIDN'T ABOUT NINETEEN POINT SIX MILLION AMERICAN HOMES TUNED IN SATURDAY THE LARGEST AUDIENCE EVER FOR THE START OF A WINTER OLYMPICS C. B. S. ATTRACTED TWENTY POINT EIGHT PERCENT OF T. V. HOMES A GAIN OF SIX POINT THREE POINTS OVER THE ALBERTVILLE OPENING ACCORDING TO A. C. NIELSEN COMPANY C. B. S. BLEW AWAY ITS RIVALS IN MAJOR CITY AUDIENCES N. B. C. HAD SEVEN POINT NINE PERCENT FOLLOWED BY A. B. C. AND FOX THE OPENING CEREMONIES AT ALBERTVILLE TWO YEARS AGO WERE SO ELABORATE SOME CALLED THEM WEIRD THAT IT SEEMED LILLEHAMMER'S WOULD PALE BY COMPARISON BUT THEY DIDN'T FROM STEIN GRUBEN'S SUCCESSFUL SKI JUMP CARRYING THE OLYMPIC TORCH TO NORWAY'S REINDEER CHILDREN AND SINGERS THE OPENING WAS A PLEASANT SURPRISE THE FASHION POLICE WOULD HAVE MANY OF THE NATIONAL TEAMS' CLOTHING DESIGNERS AND SENT SOME BELARUS AND AUSTRALIA FOR EXAMPLE DIRECTLY TO JAIL THE CROATIANS JAPANESE AND BRITISH LOOKED CLASSY THE DECISION TO ALLOW TONYA HARDING TO SKATE GAVE C. B. S. SOME NEWS TO MIX INTO THE FIRST MINUTES OF ITS OPENING TELECAST FOR THE REST OF THE EVENING TONYA NANCY MENTIONS WERE HELD TO A MINIMUM BUT ON SUNDAY MORNING C. B. S. CONVENED THREE PRINT JOURNALISTS TO CHEW OVER THE DECISION THEY WERE AS ILLUMINATING AS JOURNALISTS USUALLY ARE ON SUNDAY TALK SHOWS ANDY MILL A WORLD CUP SKI RACING VETERAN AND EXPERT COMMENTATOR FOR C. B. S. ON THE ALPINE EVENTS EXPLAINED THE PROWESS OF UNUSUALLY LARGE AUSTRIAN DOWNHILLER PATRICK ORTLIEB THIS WAY IT HAS TO DO WITH INERTIA AS EVERYBODY KNOWS IF YOU DROP TWO ROCKS OFF THE TOP OF A BUILDING A BIG ONE AND A LITTLE ONE THE BIG ONE WILL GET TO THE BOTTOM FIRST ACTUALLY GALILEO'S FAMOUS EXPERIMENT AT THE LEANING TOWER OF PISA PROVED THAT THEY WILL FALL AT THE SAME RATE MEMOREX TELEX N. V. FILED FOR CHAPTER ELEVEN BANKRUPTCY LAW PROTECTION FOR THE SECOND TIME IN TWENTY FIVE MONTHS PROPOSING A REORGANIZATION PLAN THAT GIVES SENIOR BANK CREDITORS AND BONDHOLDERS ONE HUNDRED PERCENT OF THE COMPANY'S EQUITY THE PREPACKAGED REORGANIZATION PLAN WHICH ALREADY HAS THE APPROVAL OF NINETY FIVE PERCENT OF HOLDERS OF EACH CLASS OF THE COMPANY'S SECURITIES COULD ALLOW MEMOREX TELEX TO QUICKLY EMERGE FROM BANKRUPTCY COURT MEMOREX TELEX WHICH MAKES COMPUTER DATA STORAGE EQUIPMENT SAID THE U. S. BANKRUPTCY COURT IN WILMINGTON DELAWARE SCHEDULED A MARCH FOURTEENTH CONFIRMATION HEARING FOR THE PLAN AND THAT CLEARANCE COULD COME SHORTLY AFTERWARD THE DUTCH COMPANY HAS EXECUTIVE OFFICES IN IRVING TEXAS A SPOKESMAN SAID BOTH THE DUTCH PARENT AND ITS U. S. UNIT FILED IN BANKRUPTCY COURT IN PREPACKAGED REORGANIZATIONS COMPANIES SEEK TO LINE UP THE SUPPORT OF CREDITORS BEFORE FILING THEIR PLANS IN ORDER TO EXPEDITE THE PROCEEDINGS PREPACKAGED PLANS GENERALLY TAKE A FEW MONTHS TO COMPLETE THE CONVENTIONAL REORGANIZATION PROCESS CAN TAKE CONSIDERABLY LONGER SOMETIMES YEARS THE LATEST PLAN FOLLOWS THE FILING OF A SEPARATE PREPACKAGED REORGANIZATION PLAN IN JANUARY NINETEEN NINETY TWO THAT PLAN WAS APPROVED IN FEBRUARY NINETEEN NINETY TWO A COMPANY SPOKESMAN SAID THAT WITH THE RECESSION IN EUROPE WHERE FORTY PERCENT OF THE COMPANY'S REVENUE IS GENERATED COUPLED WITH A SLOW RECOVERY IN THE U. S. WHERE FIFTY PERCENT OF REVENUE IS GENERATED THE COMPANY CONTINUED TO REPORT LOSSES AND DETERMINED THAT IT NEEDED FURTHER RESTRUCTURING UNDER THE PLAN ABOUT EIGHT HUNDRED FIFTY MILLION DOLLARS OF THE COMPANY'S NINE HUNDRED FIFTY MILLION DOLLARS OF SENIOR BANK AND PUBLIC DEBT AND ACCRUED INTEREST WILL BE CONVERTED TO A ONE HUNDRED PERCENT EQUITY STAKE THE REMAINING ONE HUNDRED MILLION DOLLARS IN DEBT WILL CONTINUE AS A FIVE YEAR TERM LOAN FROM A SYNDICATE LED BY MORGAN GUARANTY TRUST COMPANY OF NEW YORK MEMOREX TELEX SAID CURRENT SHAREHOLDERS WOULD LOSE MOST OF THEIR EQUITY TO SENIOR DEBTHOLDERS WHO WOULD CONTROL VIRTUALLY ALL OF MEMOREX TELEX BUT THE SHAREHOLDERS WOULD GET WARRANTS TO BUY STOCK IN THE NEW COMPANY THAT IF EXERCISED WOULD GIVE THEM A STAKE OF ABOUT FOUR PERCENT ST. PAUL COMPANIES C. RICHARD PETERSON FIFTY FOUR YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF NEW YORK BASED MINET INCORPORATED THE NORTH AMERICAN ARM OF LONDON'S MINET GROUP AN INSURANCE BROKER THAT'S PART OF THIS DIVERSIFIED FINANCIAL COMPANY HE SUCCEEDS ALAN B. MIDDLETON WHO REMAINS WITH THE COMPANY MR. PETERSON MOST RECENTLY WAS AN EXECUTIVE VICE PRESIDENT WITH SEDGWICK JAMES INCORPORATED SAUDI ARABIA WON'T COMMIT TO A SPRING CUT IN ITS OIL PRODUCTION DESPITE WEEKEND APPEALS FROM OTHERS IN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES BUT IT MAY NOT NEED TO IF WORLD OIL DEMAND RISES AS EXPECTED MORE INDUSTRY OFFICIALS AND ANALYSTS NOW LOOK FOR SOME SORT OF RECOVERY IN PETROLEUM PRICES LATER THIS YEAR AS REVIVING WESTERN ECONOMIES LEAD TO GREATER USE OF PETROLEUM ESTIMATES OF PRICE INCREASES EXPECTED IN THE SECOND HALF RANGE BETWEEN ONE DOLLAR AND FOUR DOLLARS A BARREL SUCH A PROMISE PROVIDES LITTLE COMFORT FOR JITTERY OPEC MINISTERS HOWEVER WITH OIL PRICES STILL HOVERING NEAR FIVE YEAR LOWS OF THIRTEEN DOLLARS TO FIFTEEN DOLLARS A BARREL THAT IS WHY DON ETIEBET NIGERIA'S OIL MINISTER WAS IN SAUDI ARABIA SATURDAY TO PLEAD WITH HIS COUNTERPART HISHAM NAZER FOR A FIVE PERCENT TO TEN PERCENT SECOND QUARTER CUT IN THE KINGDOM'S OIL OUTPUT OF EIGHT MILLION BARRELS A DAY THE NIGERIAN MINISTER APPARENTLY WENT HOME YESTERDAY EMPTY HANDED THE ONLY OFFICIAL SAUDI WORD ON THE OUTCOME OF THE WEEKEND SESSION CAME FROM THE GOVERNMENT PRESS AGENCY WHICH REPORTED THE MINISTERS DISCUSSED THE OIL MARKET SITUATION AND AGREED QUOTE TO CONTINUE CONSULTATIONS QUOTE UNTIL OPEC'S MARCH TWENTY FIFTH MEETING MUCH OF THE STEEP FALL IN PETROLEUM PRICES HAS COME SINCE NOVEMBER WHEN OPEC REFUSED TO REDUCE PRODUCTION FOR THIS YEAR'S FIRST QUARTER IF OPEC FAILS TO REDUCE OUTPUT FOR THE TRADITIONALLY SLUGGISH SECOND QUARTER THE PRICE MAY FALL FURTHER BEFORE ANY RECOVERY BEGINS MANY ANALYSTS SAY IT COULD NOSEDIVE AGAIN AROUND THE OPEC MEETING IF THE NEWS IS BAD SAID VICTORIA HALLSTROM OF SALOMON BROTHERS STILL SALOMON ANALYSTS ARE HOLDING TO AN EARLIER FORECAST THAT WEST TEXAS INTERMEDIATE OR W. T. I. THE U. S. BENCHMARK CRUDE WILL AVERAGE SIXTEEN DOLLARS AND FIFTY CENTS A BARREL THIS YEAR MR. ETIEBET'S VISIT TO SAUDI ARABIA THE WORLD'S BIGGEST OIL PRODUCER CAME AFTER HE AND ABDULLAH AL ATTIYAH OPEC'S PRESIDENT AND QATAR'S OIL MINISTER JOINTLY ANNOUNCED THE URGENT NEED OF A MAJOR PRODUCTION CUT FOR THE SECOND QUARTER MR. AL ATTIYAH ALSO IS TOURING OTHER OPEC NATIONS TO PREPARE FOR THE MARCH TWENTY FIFTH MEETING NIGERIA AND QATAR ARE BELIEVED TO BE AMONG THE MORE FREQUENT CHEATERS ON OPEC PRODUCTION QUOTAS HOWEVER AND EXCEPT FOR SAUDI ARABIA MOST OIL NATIONS IN OR OUT OF OPEC ARE NEAR CAPACITY FOR THE SAUDIS ACCORDING TO A PERSIAN GULF SOURCE CLOSE TO SAUDI ARABIA'S POLICY MAKERS THE BOTTOM LINE IS THAT THE KINGDOM DOESN'T WANT TO CUT OUTPUT NOW AND DOESN'T WANT TO DISCUSS THE ISSUE A LOT CAN HAPPEN IN THE OIL MARKET IN A MONTH HE SAID OPEC CAN DO LITTLE WITHOUT THE FULL SUPPORT OF THE SAUDIS LEO DROLLAS CHIEF ECONOMIST AT LONDON'S CENTER FOR GLOBAL ENERGY STUDIES ESTIMATED THAT A FIVE PERCENT CUT IN OPEC'S PRODUCTION OF TWENTY FOUR POINT SEVEN MILLION BARRELS A DAY SOME ONE POINT TWO MILLION BARRELS A DAY WITH SAUDI ARABIA ACCOUNTING FOR ONE THIRD COULD LIFT PRICES AN AVERAGE OF ONE DOLLAR A BARREL IN THE SECOND QUARTER BUT OIL DEMAND MR. DROLLAS SAID IS INCREASING AND THERE WOULD BE PRICE RISES IN THE THIRD AND FOURTH QUARTERS EVEN IF OPEC WERE AT CURRENT OUTPUT LEVELS THEN THAT'S IN LINE WITH SOME OTHER FORECASTS CAMBRIDGE ENERGY RESEARCH ASSOCIATES EXPECTS FOURTH QUARTER PRICES OF SEVENTEEN DOLLARS A BARREL FOR W. T. I. AND AN AVERAGE OF FIFTEEN DOLLARS FOR THE SEVEN CRUDES USED BY OPEC AS A REFERENCE THAT WOULD BE WELL BELOW YEAR AGO PRICES WHEN W. T. I. WAS NEAR TWENTY ONE DOLLARS A BARREL BUT SOME TWO DOLLARS A BARREL HIGHER THAN RECENT LEVELS ON THE NEW YORK MERCANTILE EXCHANGE FRIDAY WHERE A CRUDE SIMILAR TO W. T. I. IS TRADED THE FUTURES PRICE FOR MARCH DELIVERY SETTLED AT FOURTEEN DOLLARS AND SEVENTY TWO CENTS A BARREL IN OPEC SO FAR THIS YEAR THE REFERENCE PRICE HAS AVERAGED ONLY THIRTEEN DOLLARS AND EIGHTY NINE CENTS A BARREL DOWN FROM SIXTEEN DOLLARS AND THIRTY THREE CENTS FOR NINETEEN NINETY THREE AND EIGHTEEN DOLLARS AND FORTY FOUR CENTS FOR NINETEEN NINETY TWO ANDRE ROUSSELET CHAIRMAN OF FRENCH PAY T. V. COMPANY CANAL PLUS S. A. RESIGNED FROM THE BOARD OF HAVAS S. A. CITING DISPLEASURE WITH ITS DECISION TO GROUP ITS TWENTY FOUR PERCENT STAKE IN CANAL PLUS WITH THE TWENTY PERCENT HELD BY COMPANY GENERALE DES EAUX A CABLE OPERATOR CANAL PLUS SAID MR. ROUSSELET IS IN QUOTE TOTAL DISAGREEMENT QUOTE WITH THE HAVAS BOARD'S DECISIONS WITH RESPECT TO CANAL PLUS ON THURSDAY MR. ROUSSELET WALKED OUT OF A HAVAS BOARD MEETING IN PROTEST THE COMBINING OF STAKES IS PART OF A HAVAS STRATEGY TO FORGE A STRONG FRENCH MULTIMEDIA ALLIANCE HAVAS CHAIRMAN PIERRE DAUZIER SEEKS TO COMBINE HIS COMPANY'S EXPERTISE IN ADVERTISING T. V. AND PUBLISHING WITH THE ELEMENTS OF INTERACTIVE TECHNOLOGY THE NEW PARTNERS CONTROL PROGRAMMING FROM CANAL PLUS A BIG PLAYER IN FILM AND T. V. PRODUCTION WOULD PLAY A KEY ROLE HAVAS AND GENERALE DES EAUX ARE COMBINING THEIR RESPECTIVE CANAL PLUS STAKES IN A JOINT HOLDING SOCIETE GENERALE THE FRENCH RETAIL BANK THAT OWNS FIVE POINT ONE PERCENT OF CANAL PLUS HAS AGREED TO ACT IN CONCERT WITH HAVAS AND GENERALE DES EAUX PEOPLE CLOSE TO THE COMPANIES INVOLVED SUGGESTED THAT MR. ROUSSELET'S RESIGNATION COULD LEAD TO HIS RESIGNATION SOON FROM THE CHAIRMAN'S POST AT CANAL PLUS MEANWHILE STATE OWNED FRANCE TELECOM AGREED TO HAND OVER ITS HALF OF A JOINT TELEPHONE DIRECTORY PUBLISHING VENTURE OFFICE D'ANNONCES S. A. IN EXCHANGE FOR AN UNSPECIFIED STAKE IN HAVAS ANALYSTS ESTIMATE FRANCE TELECOM WILL GET ABOUT FIVE PERCENT ON FRIDAY HAVAS ESTIMATED THAT NINETEEN NINETY THREE NET INCOME FELL FOURTEEN PERCENT TO SEVEN HUNDRED FIVE MILLION FRANCS ONE HUNDRED EIGHTEEN POINT FIVE MILLION DOLLARS FROM A YEAR EARLIER EIGHT HUNDRED TWENTY THREE MILLION FRANCS BRITISH INSTITUTIONAL INVESTORS WITH AN INTEREST IN VENTURE CAPITAL ARE INCREASINGLY MANAGING SUCH INVESTMENTS THEMSELVES BECAUSE OF DISSATISFACTION WITH LOW YIELDS PRODUCED BY INTERMEDIARY VENTURE CAPITAL COMPANIES THAT'S THE CONCLUSION OF A REPORT ON THE BRITISH INDUSTRY PUBLISHED BY INITIATIVE EUROPE LIMITED A SPECIALIST CONSULTANCY QUOTE AFTER A DECADE OF RAPID GROWTH THE U. K. VENTURE CAPITAL INDUSTRY IS ENTERING ADOLESCENCE RATHER THAN MATURITY QUOTE THE REPORT SAYS OUTSIDE THE U. S. BRITAIN'S VENTURE CAPITAL INDUSTRY IS ONE OF THE WORLD'S MOST DEVELOPED SO MOVES HERE CAN BE USEFUL GUIDES TO WHAT MAY HAPPEN IN CONTINENTAL EUROPE THOUGH INSTITUTIONAL INVESTORS CAN PROVIDE A POTENTIALLY VAST POOL OF CAPITAL FOR THE VENTURE CAPITAL INDUSTRY THE REPORT STATES MANY HAVE BEEN DISCOURAGED BY RETURNS SO FAR AS A RESULT RATHER THAN INVESTING THROUGH OUTSIDE FIRMS INSTITUTIONS SUCH AS PRUDENTIAL CORPORATION AND POSTEL INVESTMENT MANAGEMENT THE POST OFFICE AND TELEPHONE WORKERS' PENSION FUND HAVE RECENTLY INVESTED SUBSTANTIAL SUMS IN DIRECTLY CONTROLLED VENTURE CAPITAL OPERATIONS THIS TREND FOR INSTITUTIONS TO MOVE FROM FUND TO DIRECT INVESTMENT IS LIKELY TO CONTINUE AND INTENSIFY INITIATIVE EUROPE PREDICTS INVESTMENTS IN BRITISH VENTURE CAPITAL FUNDS DURING THE NINETEEN EIGHTIES WERE BASED ON THE PROMISE OF RETURNS IN EXCESS OF THIRTY PERCENT BUT THESE PROMISES WERE BASED ON ERRONEOUS DATA ABOUT U. S. PERFORMANCE AND ON A HANDFUL OF EARLY EXPERIENCES OF U. K. BUYOUTS THAT WEREN'T MATCHED IN LATER YEARS INITIATIVE EUROPE SAYS IN REALITY IT NOTES MOST MAJOR U. K. INSTITUTIONAL INVESTORS HAVE SEEN THEIR VENTURE CAPITAL INVESTMENTS YIELD RETURNS OF BETWEEN ZERO AND TEN PERCENT OVER THE PAST DECADE PRESIDENT CLINTON'S TALK ABOUT INFRASTRUCTURE RESONATES WITH PARENTS WHO ARE SPENDING A RECORD AMOUNT OF MONEY SO THEIR CHILDREN CAN BUILD BRIDGES HIGHWAYS AND RAILROADS WITH LEGO BLOCKS ERECTOR SETS LINCOLN LOGS AND TINKER TOYS SALES OF CONSTRUCTION TOYS GREW AN ESTIMATED FIFTEEN PERCENT LAST YEAR OUTPACING THE TOY INDUSTRY OVERALL WHICH GREW AT LESS THAN FIVE PERCENT THE SALES FIGURES WILL BE ANNOUNCED TODAY IN NEW YORK AT THE OPENING OF THE AMERICAN INTERNATIONAL TOY FAIR MUCH OF THE BUZZ AT THE SHOW WILL BE ABOUT NEW OFFERINGS IN THE ACTION FIGURE CATEGORY WHICH HAS HAD BIG HITS RECENTLY LIKE THE MIGHTY MORPHIN POWER RANGERS BUT WHILE THE POWER RANGERS ARE STILL VERY POPULAR CONSTRUCTION TOYS HAVE SHOWN STRONG STEADY GROWTH AS SCHOOLS AND PARENTS HAVE BOUGHT THEM FOR THEIR EDUCATIONAL VALUE RECOGNITION FROM RESEARCHERS OF THE IMPORTANCE OF SUCH QUOTE MANIPULATIVE QUOTE TOYS IN EARLY DEVELOPMENT IS FUELING THE GROWTH AS ARE SAVVY PROMOTIONS TOUCHING AND ORGANIZING OBJECTS IS WIDELY THOUGHT TO HELP IN UNDERSTANDING THE ABSTRACTIONS OF MATHEMATICS AND SCIENCE ESPECIALLY IN THE EARLY YEARS LINDA KAHRS PRESIDENT OF TOUT ABOUT TOYS INCORPORATED IN FOSTER CITY CALIFORNIA WHICH SELLS TEACHING AIDS TO SCHOOLS SAYS MANIPULATIVES HAVE BECOME THE MAINSTAY OF MY BUSINESS HER COMPANY HAS GROWN FROM ONE PRODUCT SOLD FROM HER CAR IN NINETEEN EIGHTY FIVE TO AN OFFICE SLASH WAREHOUSE DISTRIBUTING SEVERAL HUNDRED TOYS TODAY THE CLASSROOM HAS BECOME A SUBTLE ADVERTISEMENT FOR THE PRODUCT SAYS MS. KAHRS I HAVE PARENTS ASKING ME ALL THE TIME WHERE THEY CAN GET PRODUCT YOUR LOCAL TOY STORE I OFTEN SAY LEGO WHICH HAS A DANISH PARENT WILL UNVEIL AT TOY FAIR PLANS TO TAKE AN EDUCATIONAL EXHIBIT OF ITS BLOCKS TO MUSEUMS IN THE U. S. AND CANADA OVER THE NEXT SEVERAL YEARS NEARLY ONE HUNDRED MUSEUMS ARE INTERESTED WE'RE BOOKED THROUGH NINETEEN NINETY SEVEN SAYS JOHN DION THE EXHIBIT'S MANAGER CONSTRUCTION TOYS ACCOUNTED FOR THREE HUNDRED FIFTY MILLION DOLLARS IN NINETEEN NINETY THREE SALES ABOUT TWO HUNDRED MILLION DOLLARS LESS THAN ACTION FIGURES BUT ANALYSTS EXPECT BIG GROWTH IN PLAY BUILDING LEGO THE CATEGORY'S LEADER SOLD TWO HUNDRED FIFTY MILLION DOLLARS OF ITS PLASTIC BLOCKS IN NINETEEN NINETY THREE AND EXPECTS DOUBLE DIGIT SALES GROWTH THIS YEAR A FEAT IT HAS ACHIEVED FOR THE LAST SIX YEARS MECCANO INCORPORATED A UNIT OF FRENCH BASED MECCANO S. A. IS PREDICTING SALES OF TWO MILLION ERECTOR SETS THIS YEAR DOUBLE LAST YEAR'S VOLUME AND CONNECTOR SET TOY COMPANY A NEWCOMER BASED IN HATFIELD PENNSYLVANIA THAT MAKES K'NEX HIT TWENTY FIVE MILLION DOLLARS IN SALES IN NINETEEN NINETY THREE ITS FIRST YEAR ON THE MARKET AND ALSO EXPECTS SALES TO DOUBLE THIS YEAR BIG U. S. TOY MAKERS HAVE TENDED TO GIVE SHORT SHRIFT TO THE CATEGORY DESPITE SIGNS OF ROOM FOR GROWTH JOEL GLICKMAN MANAGING PARTNER OF CONNECTOR SET SHOPPED K'NEX AROUND THREE YEARS AGO QUOTE I HAD THE HONOR OF BEING TURNED DOWN BY ALL OF THE MAJORS IN THE INDUSTRY QUOTE HE SAYS STEPHANE TREPPOZ MECCANO'S U. S. CHIEF FIGURES THAT CONSTRUCTION TOYS REPRESENT ONLY THREE PERCENT OF TOY SALES HERE COMPARED WITH SIX PERCENT TO EIGHT PERCENT IN OTHER DEVELOPED NATIONS THE LEGO MUSEUM EXHIBIT IS DESIGNED TO LET CHILDREN TEST SEISMIC AND ROBOTIC PRINCIPLES VISITORS CAN BUILD HOMES AND SKYSCRAPERS ON A SHAKING TABLE THAT SIMULATES EARTHQUAKES OF VARYING INTENSITIES KIDS CAN BUILD TO WITHSTAND A MAJOR CALIFORNIA RUMBLE SAYS MR. DION OR THEY CAN CONSTRUCT TO MAKE THE BUILDING CRASH WITH THE LOUDEST NOISE CONSTRUCTION TOY COMPANIES ALSO HAVE MORE TRADITIONAL MARKETING PLANS MECCANO WILL DOUBLE ITS T. V. ADVERTISING BUDGET THIS YEAR AND LEGO WILL TAKE A PAGE FROM U. S. TOY MAKERS SPINNING MORE FANTASY AROUND ITS NEW PRODUCTS WHICH INCLUDE NEW BLOCKS AND SHAPES TO BUILD FLYING SAUCERS ROBOTS AND A TROPICAL ISLAND LEGOLAND MECCANO'S MR. TREPPOZ SAYS THAT KIDS DON'T HAVE TO BADGER PARENTS TO GET THEM A CONSTRUCTION TOY AS THEY DO WITH VIDEO GAMES THAT MAY BE SO BUT DIVERTING THE ATTENTION OF CHILDREN AWAY FROM MORE TRADITIONAL TOYS WON'T BE EASY ALL EYES AT TOY FAIR WILL BE ON THE MIGHTY MORPHIN POWER RANGERS A LINE OF FIGURINES MADE BY BANDAI AMERICA INCORPORATED THAT CAN BE TRANSFORMED FROM ROBOTS TO OTHER FORMS AND OBJECTS POWER RANGERS WERE IN SHORT SUPPLY LAST YEAR HOPING TO CASH IN ON THE CRAZE TOY MAKERS LARGE AND SMALL HAVE LINED UP AN ARRAY OF IMITATORS BANDAI HAS BEEN TOLD BY RETAILERS TO EXPECT POWER RANGER SALES OF UP TO THREE HUNDRED FIFTY MILLION DOLLARS IN NINETEEN NINETY FOUR SAYS PETER DANG A BANDAI AMERICA VICE PRESIDENT LAST YEAR DINOSAURS WERE ALSO HOT IN PART DUE TO THE FILM JURASSIC PARK AT THE HONG KONG TOY FAIR LAST MONTH I SAW A LOT OF DINOSAURS CHANGE IN AN INSTANT TO CONVERTIBLE ROBOTS REPORTS MR. DANG HASBRO INCORPORATED THE BIGGEST TOY MAKER AND LEADING ACTION FIGURE MAKER WILL UNVEIL A SLEW OF NEW ENTRIES INCLUDING A MORTAL KOMBAT LINE BASED ON THE GRAPHICALLY VIOLENT VIDEO GAME BY ACCLAIM ENTERTAINMENT INCORPORATED MATTEL INCORPORATED WILL COME OUT WITH A FLINTSTONES ACTION FIGURE LINE TIED TO THE T. V. CARTOON IN ALL MORE THAN FORTY ACTION FIGURES WILL BE SHOWN AT THE FAIR EXCEEDING LAST YEAR'S RECORD OF THIRTY SIX ESTIMATES JIM SILVER PUBLISHER OF TOY BOOK A TRADE PUBLICATION QUOTE THE ONLY THING I HAVEN'T SEEN YET IS A TONYA HARDING ACTION FIGURE QUOTE MR. SILVER SAYS FOR GIRLS MATTEL HAS MORE VERSIONS OF BARBIE WHO IS NOW IN HER THIRTY FIFTH YEAR YIELDING A BIT TO CRITICISM OF THE DOLL'S APPEARANCE MATTEL IS PUTTING FLATTER FEET ON SOME BARBIES THOUGH HER BUST REMAINS UNCHANGED MEANWHILE TYCO TOYS INCORPORATED WILL BRING OUT GROWING UP KATHY A BABY DOLL THAT GROWS BREASTS AND TURNS INTO A SHAPELY TEENAGER WHEN HER ARMS ARE LIFTED FOR PRESCHOOLERS MATTEL HAS A LINE OF TOYS TIED TO WALT DISNEY'S ANIMATED FEATURE THE LION KING TO PREMIERE IN JUNE OTHER TOY MAKERS ARE ALSO EXPECTED TO INTRODUCE JUNGLE ANIMAL TOYS BRAZIL'S INDUSTRIAL PRODUCTION GREW NINE POINT SIX PERCENT IN NINETEEN NINETY THREE OVER THE PREVIOUS YEAR DECEMBER PRODUCTION ADVANCED TEN POINT ONE PERCENT ABOVE THE LEVEL IN DECEMBER NINETEEN NINETY TWO AND WAS FOUR POINT FOUR PERCENT HIGHER THAN IN NOVEMBER ACCORDING TO THE NATIONAL INSTITUTE OF GEOGRAPHY AND STATISTICS LAST YEAR'S INDUSTRIAL PRODUCTION WAS THE BEST IN SEVEN YEARS THE INSTITUTE SAID DECEMBER WAS THE THIRD CONSECUTIVE MONTH IN WHICH PRODUCTION GREW OVER THE PREVIOUS MONTH ACCORDING TO THE DATA THE MOST DRAMATIC GROWTH WAS IN CONSUMER DURABLE GOODS WHICH INCREASED FORTY ONE PERCENT IN NINETEEN NINETY THREE OVER THE PREVIOUS YEAR IN THE SAME PERIOD CAPITAL GOODS GREW FOURTEEN POINT NINE PERCENT AND NONDURABLE CONSUMER GOODS ROSE THREE POINT NINE PERCENT AGING POPULATIONS ADD TO THE TROUBLES OF EASTERN EUROPE AND THE FORMER SOVIET REPUBLICS THE U. S. CENSUS BUREAU REPORTS THAT ONE IN TEN PEOPLE IN THESE TWENTY TWO COUNTRIES CZECHOSLOVAKIA AND YUGOSLAVIA STILL COUNTING AS ONE EACH WAS SIXTY FIVE OR OVER IN NINETEEN NINETY AND THAT BY TWO THOUSAND TWENTY FIVE THE PROPORTION WOULD BE ONE IN FIVE AGING POPULATIONS CHARACTERIZE ALL INDUSTRIALIZED NATIONS IN THE U. S. FOR EXAMPLE ONE IN EIGHT IS ELDERLY BUT CENSUS SUGGESTS THAT THE AGING TREND IS MORE OF A PROBLEM FOR THE FORMER COMMUNIST NATIONS ONE REASON IS THAT MOST HAVE VERY LIBERAL PENSION POLICIES WHICH WILL STRAIN SCARCE ECONOMIC RESOURCES EFFORTS TO REDUCE PENSIONS OR INABILITY TO MEET PENSION OBLIGATIONS COULD ADD TO POLITICAL INSTABILITY ANOTHER FACTOR IS THAT WOMEN GREATLY OUTNUMBER MEN AMONG THE ELDERLY IN THESE COUNTRIES AND AGED WOMEN USUALLY REQUIRE MORE MEDICAL AND OTHER CARE ELDERLY WOMEN OUTNUMBER ELDERLY MEN PRACTICALLY ALL OVER THE WORLD BUT THE DISPROPORTION IS PARTICULARLY GREAT IN THE FORMER COMMUNIST COUNTRIES DUE TO MALE DEATHS IN WORLD WAR TWO IN RUSSIA FOR EXAMPLE ELDERLY WOMEN ARE ALMOST THREE TIMES AS NUMEROUS AS ELDERLY MEN THE CHIEF CAUSE OF THE INCREASING PROPORTION OF OLD PEOPLE IN EASTERN EUROPE AND MOST FORMER SOVIET COUNTRIES IS LONG TIME LOW FERTILITY RATES SAYS CENSUS SPECIALIST VICTORIA VELKOFF WITH FERTILITY OFTEN BELOW OR JUST AT REPLACEMENT LEVELS EXISTING GENERATIONS BULK LARGER AND LARGER IN THE TOTAL POPULATION COUNTRIES WITH THE HIGHEST RATIO OF OLD FOLKS ARE HUNGARY THIRTEEN POINT FOUR PERCENT BULGARIA THIRTEEN PERCENT THE CZECH REPUBLIC TWELVE POINT FIVE PERCENT UKRAINE TWELVE POINT ONE PERCENT AND LATVIA TWELVE PERCENT RUSSIA WITH ITS HUGE TOTAL POPULATION HAD BY FAR THE MOST ELDERLY MEN AND WOMEN ALMOST FIFTEEN MILLION BUT THEY REPRESENTED JUST TEN PERCENT OF ITS TOTAL DETROIT WHITES GROW SLIGHTLY MORE COMFORTABLE ABOUT BLACK NEIGHBORS BLACKS BACK AWAY FROM WHITE NEIGHBORHOODS DEMOGRAPHER REYNOLDS FARLEY AND COLLEAGUES AT THE UNIVERSITY OF MICHIGAN'S POPULATION STUDIES CENTER COMPARED RESIDENTIAL PREFERENCES OF BLACKS AND WHITES AS REVEALED IN TWO LARGE SURVEYS ONE IN NINETEEN SEVENTY SIX AND THE OTHER IN NINETEEN NINETY TWO GIVEN THE LONG HISTORY OF RACIAL ANTAGONISMS IN THE AREA THEY EXPECTED HEAVY WHITE OPPOSITION TO BLACK INCURSIONS INTO WHITE NEIGHBORHOODS AND PERHAPS HEIGHTENED BLACK APPREHENSION ABOUT MOVING THERE THE SURVEYS INVOLVED LARGE RANDOM SAMPLES IN DETROIT AND ITS SUBURBS WHITE RESPONDENTS WERE ASKED THEIR REACTION TO HAVING DIFFERENT COMBINATIONS OF BLACK AND WHITE FAMILIES LIVING AROUND THEM IN NINETEEN NINETY TWO EIGHTY FOUR PERCENT SAID THEY WOULD BE COMFORTABLE WITH ONE BLACK FAMILY OUT OF FIFTEEN UP FROM SEVENTY SIX PERCENT IN NINETEEN SEVENTY SIX AND SEVENTY PERCENT SAID THEY'D FEEL O. K. ABOUT THREE BLACK FAMILIES OUT OF FIFTEEN COMPARED WITH FIFTY EIGHT PERCENT EARLIER THOUGH ONLY THIRTY FIVE PERCENT SAID THEY'D FEEL COMFORTABLE LIVING WITH AN EIGHT TO SEVEN BLACK MAJORITY THIS WAS UP FROM TWENTY EIGHT PERCENT IN NINETEEN SEVENTY SIX MOREOVER THE PERCENTAGES SAYING THEY WOULD TRY TO MOVE OUT IF BLACK FAMILIES MOVED IN DROPPED SIGNIFICANTLY IN EACH CASE PRACTICALLY ALL THOSE WHO WOULD TRY TO MOVE OUT GAVE CONCERN OVER A DROP IN PROPERTY VALUES AS THEIR MAIN REASON WITH FEAR OF INCREASED DRUGS CRIME AND VIOLENCE AS THEIR NEXT IN BOTH SURVEYS BLACKS WERE ASKED ABOUT THEIR DESIRE TO MOVE INTO DIFFERENT TYPES OF NEIGHBORHOODS FROM ALL BLACK AREAS TO ONES WHERE THEY WOULD BE THE ONLY BLACK FAMILY CHANGES BETWEEN NINETEEN SEVENTY SIX AND NINETEEN NINETY TWO WERE SMALL BUT IN EVERY CASE INDICATED QUOTE A SLIGHT SHIFT AWAY FROM RESIDENTIAL INTEGRATION QUOTE THOSE PREFERRING ALL BLACK OR PREDOMINANTLY BLACK AREAS GAVE AS REASONS SIMPLY WANTING TO LIVE WITH OUR OWN KIND OR FEELING SUCH NEIGHBORHOODS WOULD BE MORE WELCOMING DOCTOR FARLEY THINKS RESULTS IN OTHER METROPOLITAN AREAS WITH A HISTORY OF RACIAL TENSIONS PROBABLY WOULD BE SIMILAR TO THE DETROIT RESULTS BUT THAT BOTH WHITES AND BLACKS WOULD BE MORE INTEGRATION READY IN AREAS WHERE RELATIONS HAVE HISTORICALLY BEEN BETTER THAN IN AND AROUND DETROIT FULL TIME LEGISLATORS BECOME MORE COMMON AT THE STATEHOUSE LEVEL AN ANALYSIS BY THE NATIONAL CONFERENCE OF STATE LEGISLATURES SHOWS THAT THE PERCENTAGE OF INCUMBENTS LISTING THEMSELVES AS FULL TIME LAWMAKERS HAS RISEN TO ALMOST FIFTEEN PERCENT FROM TWO POINT SEVEN PERCENT IN NINETEEN SEVENTY SIX AND ELEVEN POINT FIVE PERCENT IN NINETEEN EIGHTY SIX LAWYERS TRADITIONALLY THE LARGEST GROUP STILL TOP THE OCCUPATIONAL LIST AT SIXTEEN POINT FIVE PERCENT OF THE NINETEEN NINETY THREE TOTAL BUT THAT'S A CONSIDERABLE FALLOFF FROM MORE THAN TWENTY TWO PERCENT IN NINETEEN SEVENTY SIX THE CONFERENCE SAYS STRINGENT DISCLOSURE LAWS AND THE INCREASING LENGTH OF LEGISLATIVE SESSIONS PROBABLY EXPLAIN THE DROP BUSINESS OWNERS ACCOUNTED FOR TEN PERCENT OF THE TOTAL IN NINETEEN NINETY THREE DOWN FROM FIFTEEN POINT EIGHT PERCENT IN NINETEEN SEVENTY SIX AND THIRTEEN POINT EIGHT PERCENT IN NINETEEN EIGHTY SIX BUT THEY REMAINED THE THIRD LARGEST GROUP HOWEVER THE PROPORTION OF LEGISLATORS IDENTIFYING THEMSELVES AS BUSINESS EXECUTIVES OR MIDDLE MANAGEMENT INCHED UP DURING THE PERIOD THERE ARE FEWER SELF PROCLAIMED FARMERS THAN IN NINETEEN SEVENTY SIX THOUGH THEY STILL ARE THE FOURTH LARGEST GROUP MAKING UP JUST UNDER EIGHT PERCENT OF ALL LEGISLATORS THE NUMBER OF REAL ESTATE AGENTS AND INSURANCE MEN AND WOMEN ALSO DECLINED CONSIDERABLY CLASSIFICATIONS SHOWING SMALL GAINS INCLUDED DOCTORS RETIREES AND HOMEMAKERS IN GENERAL HOWEVER THERE SEEMS REMARKABLE STABILITY IN THE OCCUPATIONS REPRESENTED IN STATE LEGISLATURES THE CONFERENCE CONCLUDED DON'T GO WALKING ON SATURDAY NIGHT METROPOLITAN LIFE INSURANCE FINDS THAT ONE OUT OF FIVE PEDESTRIAN DEATHS OCCURS ON SATURDAYS WITH ABOUT TWO THIRDS TAKING PLACE BETWEEN SIX P. M. SATURDAY AND THREE A. M. SUNDAY MANY OLDER ADULTS TEND TO UNDERESTIMATE THEIR MENTAL ABILITIES BELIEVING THESE SKILLS HAVE DECLINED MORE THAN THEY ACTUALLY HAVE ACCORDING TO RESEARCH BY PENN STATE PSYCHOLOGISTS TIM FERGUSON'S JANUARY ELEVENTH BUSINESS WORLD QUOTE THE CLOGGED PIPELINE OF CRAFT TRAINING QUOTE DOES A GOOD JOB OF PERPETUATING THE MYTH THAT THE BUILDING TRADES ARE MINIMALLY SKILLED LABORERS IT DOES NOT LEAVE THE READER WITH THE IMPRESSION THAT THESE MEN AND WOMEN UNDERGO RIGOROUS EDUCATIONAL PROGRAMS SUPERVISION AND TESTING AS DO THOSE IN OTHER PROFESSIONS NOR DOES IT ILLUSTRATE THE TECHNICAL COMPETENCIES PLANNING DECISION MAKING AND RISK ASSOCIATED WITH MOST TRADES PERSPECTIVE MIGHT BE GAINED BY CHANGING THE PROFESSION IN MR. FERGUSON'S ARTICLE TO C. P. A. ATTORNEY PHYSICIAN NURSE OR COLLEGE PROFESSOR OR PERHAPS MR. FERGUSON WOULD CONSIDER THE ADVANTAGE TO THE ECONOMY OF LOWER PRICED NEWSPAPERS AND MAGAZINES IF ONLY EDITORIAL WRITERS WERE PAID TWENTY FIVE PERCENT TO THIRTY PERCENT LESS THAN THEY ARE CURRENTLY MAKING SERIOUSLY MANY PEOPLE SLEEP MORE SOUNDLY AND BUSINESS PEOPLE ARE FREED TO FOCUS ON PROFIT MAKING VENTURES BECAUSE TRADESPEOPLE PROVIDE QUALITY WORK THESE PEOPLE ARE THE BACKBONE OF SOCIETY AND THEY ARE ENTITLED TO AN ADEQUATE COMPENSATION THE ARROGANCE OF MR. FERGUSON'S ARTICLE IS APPALLING A FEW WEEKS AGO I ATTACKED QUOTE IN THE BEST OF FAMILIES MARRIAGE PRIDE AND MADNESS QUOTE FOR ITS VIOLENCE SEVERAL READERS WROTE IN TO DEFEND THE MINISERIES SAYING THAT IT WAS A TRUE STORY AND NOT JUST VIOLENCE MADE UP FOR T. V. IN THE BEST OF FAMILIES IS A PARTICULARLY UNPLEASANT BLOODFEST THE TALE OF A MOTHER WHO FLIPS OUT ABUSES HER KIDS RUNS OUT ON HER HUSBAND THEN CONVINCES HER NEW LOVER TO GO ON A RAMPAGE AND KILL OFF EVERYONE IN SIGHT FROM HER EX HUSBAND'S PARENTS TO HER OWN PARENTS FINALLY IN THE FINALE SHE BLOWS HERSELF HER LOVER AND HER TWO CHILDREN TO BITS A MESSY TALE AND IT'S UNDOUBTEDLY TRUE I HAVE IT ON THE AUTHORITY NOT JUST OF C. B. S. BUT ALSO OF SEVERAL NORTH CAROLINA READERS WHO AFFIRM THAT THE EVENTS TOOK PLACE NOT FAR FROM THEIR OWN HOMES BUT IS A TRUE STORY ANY MORE OR LESS WORTHY SHOULD IT BE HELD TO A DIFFERENT STANDARD BECAUSE IT'S TRUE AN INTERESTING QUESTION AND IT CUTS TO THE HEART OF THE CURRENT BOOM IN NETWORK TRUE CRIME STORIES CUTS TO ITS HEART WITH A RUSTY JAGGED TEN INCH BLADE TODAY'S PRODUCERS USE TRUENESS TO INTRODUCE ALL SORTS OF SENSATIONALISTIC TWADDLE ONTO THE AIRWAVES WOMEN WHO GET THEIR KIDS TO MURDER THEIR HUSBANDS MEN WHO KILL OFF THEIR ENTIRE FAMILIES PSYCHIATRISTS WHO RAPE THEIR PATIENTS WHILE THEY'RE UNDER SEDATION AND THOSE ARE JUST THE MADE FOR T. V. MOVIES FROM THE PAST YEAR AND A HALF WOULD THESE FREAK SHOWS EVEN GET ON THE AIR IF THEY WEREN'T TRUE TRUENESS SEEMS TO GIVE THE DRAMA THE PATINA OF REPORTAGE THE VENEER OF JOURNALISM THAT MAKES THE GORE OR THE SHEER LACK OF ARTISTRY ACCEPTABLE IN A WAY IT WOULDN'T BE IF IT WERE JUST FICTION THAT'S WHAT FAMILIES IS TRYING TO ACHIEVE WHEN IT STATES AT THE END IN THIS COUNTRY MILLIONS OF CHILDREN ARE CURRENTLY TIED UP IN CUSTODY BATTLES BETWEEN THEIR PARENTS THE STORY YOU HAVE JUST SEEN IS AN EXTREME EXAMPLE AS IF WE HAD SPENT THE PAST FOUR HOURS WATCHING AN ANALYSIS OF CURRENT TRENDS INSTEAD OF TWO NUT CASES RUNNING AROUND WAVING HIGH POWERED RIFLES A FEW YEARS BACK PRODUCERS ATTEMPTED TO GIVE THESE DOCUDRAMAS SOME LARGER ARTISTIC OR SOCIAL RESONANCE AS IN QUOTE THE BURNING BED QUOTE NOT THAT OUR STANDARDS WERE SO HIGH TEN YEARS AGO BUT THEY'VE CLEARLY DROPPED TODAY THERE IS NO ACT SO HEINOUS THAT SOME NETWORK WON'T RUSH ONTO THE SCREEN AND YELL LOOK AT THIS BECAUSE THE STORY REALLY HAPPENED EVERYONE IS ABSOLVED OF THE RESPONSIBILITY TO THINK NETWORK PRODUCERS ADVERTISERS VIEWERS SO FOR THE RECORD JUST BECAUSE SOMETHING IS TRUE DOESN'T MAKE IT INTERESTING AND IT DOESN'T NECESSARILY EVEN MAKE IT TRUE TODAY'S DOCUDRAMAS CAN NOW BE REAL LIFE FACT BASED OR MY FAVORITE INSPIRED BY ACTUAL EVENTS THERE'S NOTHING INHERENTLY EVIL ABOUT THE DOCUDRAMA GENRE EXCEPT WHEN A FILM'S ONLY VIRTUE IS ITS LURIDNESS BUT WITH THE TRUE CRIME GENRE WE'RE HITTING A NEW LOW IN THE WORDS OF ONE READER SO THIS WAS BASED ON A TRUE STORY SO WHAT WE ARE ALL SICK OF THIS GARBAGE AND WE WON'T WATCH IT ANYMORE BUT THEY PROBABLY WILL UNLESS THEY BOYCOTT THE MINISERIES NOW BEING PLANNED TO RETELL THE STORIES OF TONYA HARDING AND THE MENENDEZ BROTHERS CAN A SERIES CALLED LORENA AND JOHN WAYNE BE FAR BEHIND DREDGING THROUGH THE OTHER SIDE OF THE SAME MURKY WATERS IS THIS WEEK'S QUOTE TABLOID TRUTH THE MICHAEL JACKSON SCANDAL QUOTE P. B. S. TUESDAY NINE TO TEN P. M. E. S. T. A SHOW THAT PROVES THAT JOURNALISTS AREN'T NECESSARILY ANY PURER THAN MOVIE OF THE WEEK PRODUCERS WHEN THEY SINK THEIR TEETH INTO A REALLY JUICY TALE CORRESPONDENT RICHARD BEN CRAMER AND PRODUCER THOMAS LENNON HAVE ASSEMBLED A LIVELY HOUR TRACING THE EVOLUTION OF THE WACKO JACKO STORY FROM ONE NEWS BLURB TO ONE HUNDRED SCREAMING HEADLINES ABOUT PEDOPHILIA HOW BLOOD IN THE WATER BECOMES A FEEDING FRENZY HOW THE CARNIVAL SIDESHOWS HAVE BECOME THE MAIN EVENT IT'S A JOURNEY TO THE SEAMY SIDE OF THE NEWS COMPLETE WITH A ROGUE'S GALLERY OF CON MEN SCOOP HOUNDS AND ANYONE ELSE WHO'LL CRAWL OUT OF A HOLE FOR A FEW BUCKS THE STORY BEGAN EARLY ONE SUNDAY MORNING WITH A PHONE CALL TO FREE LANCE T. V. REPORTER DON RAY A SEARCH WARRANT HAD BEEN ISSUED FOR MICHAEL JACKSON'S NEVERLAND RANCH MR. RAY TOOK THE NEWS TO LOS ANGELES STATION KNBC AND FROM THERE IT WAS ONLY A MATTER OF HOURS BEFORE THE TABLOIDS DESCENDED ON IT THE HORDES FROM EUROPE WERE QUICK OUT OF THE BLOCKS ONE FLEET STREETER TALKS OF SEEING A PARIS MATCH EMPLOYEE PUSHING OLD PEOPLE IN WHEELCHAIRS OUT OF THE WAY TO RUN OFF THE PLANE TABLOID TRUTH IS ESPECIALLY ADEPT AT SHOWING HOW COMPETITION FUELS THE FIRE A CURRENT AFFAIR DOESN'T WANT TO LOSE OUT TO HARD COPY AND NO ONE WANTS TO BE BEATEN BY THE NATIONAL ENQUIRER IN THIS HIGH STAKES ATMOSPHERE IT'S TABLOID RULES THE ALLEGATION OF A FACT IS AS GOOD AS THE FACT ITSELF SAYS HARD COPY'S DIANE DIMOND IN TABLOID TRUTH IT WAS EITHER GOING TO BE SUPERSTAR BEING FALSELY ACCUSED OR IT WAS GOING TO BE SUPERSTAR PERHAPS GUILTY OF ONE OF THE MOST HEINOUS CRIMES WE KNOW EITHER WAY I COULDN'T LOSE AS THE STORY UNROLLED CHECKBOOK JOURNALISM WAS THE ORDER OF THE DAY QUOTE ANYBODY WHO DOESN'T PAY MONEY IT'S LIKE THE CAVALRY RIDING INTO MACHINE GUN FIRE QUOTE SAYS NEWS OF THE WORLD WRITER STUART WHITE IT'S ANACHRONISTIC JOURNALISM CANNOT BE DONE TODAY AT OUR LEVEL WITHOUT SOMEBODY GETTING A CHECK IN THE END OF COURSE IT'S MONEY THAT DRIVES THE WHOLE ENTERPRISE THAT HAS BROUGHT EVEN THE NETWORK NEWSMAGAZINES DOWN TO THE LEVEL OF THE TABLOIDS AND THE BOBBITTS AND THE MENENDEZES SEVEN YEARS AGO THE SO CALLED UPPER ECHELON OF TELEVISION JOURNALISM LAUGHED AND SNEERED AT OUR STYLE SAYS STEVE DUNLEAVY OF A CURRENT AFFAIR THEY DON'T LAUGH AND SNEER NOW AND THAT'S ANOTHER TRUE STORY COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE FOR A WHILE IT SEEMED AS IF ON LINE SERVICE GENIE HAD PULLED A DISAPPEARING ACT DESPITE GROWING INTEREST IN ON LINE SYSTEMS GENIE BECAME AN ALSO RAN WHILE AMERICA ONLINE COMPUSERVE AND PRODIGY GRABBED THE SPOTLIGHT NOW OVERSHADOWED BY THOSE LARGER RIVALS GENIE WANTS TO USE MARKETING MAGIC AND CAST ITSELF AS A TRENDY ALTERNATIVE FOR HIP COMPUTER USERS LOOKING TO HAVE A GOOD TIME ON LINE QUOTE THIS IS NOT YOUR FATHER'S ON LINE SERVICE QUOTE PROCLAIM GENIE'S SPLASHY NEW MAGAZINE ADS TOUTING ON LINE GOSSIP AND GAMES THE ADVERTISEMENTS PROMOTE GENERAL ELECTRIC COMPANY'S GENIE AS THE MOST FUN YOU CAN HAVE WITH YOUR COMPUTER ON THERE'S JUST CAUSE FOR AN IMAGE MAKEOVER ACCORDING TO ON LINE OBSERVERS LAST YEAR AMERICA ONLINE INCORPORATED'S SERVICE PASSED GENIE AND JOINED H. AND R. BLOCK INCORPORATED'S COMPUSERVE AND PRODIGY AS THE INDUSTRY'S BIG THREE PRODIGY IS A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORPORATION AND SEARS ROEBUCK AND COMPANY WHILE THE OVERALL INDUSTRY STEAMED AHEAD GENIE TREADED WATER HAMPERED BY A REPUTATION OF BEING DIFFICULT TO USE AND CATERING MOSTLY TO TECHNICALLY ORIENTED SUBSCRIBERS EVEN ONE OF ITS STRENGTHS A STABLE OF GLITZY INTERACTIVE GAMES PITTING USERS AGAINST ONE ANOTHER OVER THE TELEPHONE LINES CONTRIBUTED TO AN IMAGE THAT WAS WELL NERDY GENIE HOPES TO TURN THOSE NOTIONS UPSIDE DOWN BY STRESSING ENTERTAINMENT NOT INFORMATION AS THE MAIN BENEFIT OF USING A PERSONAL COMPUTER TO HOOK UP TO AN ON LINE SERVICE WE WANT TO TRY TO GET ACROSS A SENSE OF THE SERVICE BEING FUN SAID JOHN BARBER GENERAL MANAGER OF GENIE TO SOME DEGREE OUR COMPETITION IS CABLE TELEVISION GENIE MARKETING MANAGER CHIP CHIAPPONE PUT IT ANOTHER WAY WE'RE TRYING TO SHOW AN ATTITUDE GENIE OFFICIALS SAID THE SERVICE'S LOW PROFILE IN THE PAST YEAR WASN'T AN ACCIDENT INSTEAD THEY SAID THE SERVICE DECIDED TO REFRAIN FROM TARGETING NEW SUBSCRIBERS WHILE IT ADDRESSED PROBLEMS INCLUDING ITS DIFFICULT TO USE INTERFACE OBVIOUSLY TO SPEND A LOT OF MARKETING DOLLARS ON A PRODUCT THAT IS NOT COMPETITIVE IS NOT A SMART WAY TO DO BUSINESS MR. BARBER SAID DURING THE NEXT FEW MONTHS GENIE PLANS TO OFFER A GRAPHICAL INTERFACE PROGRAM THAT LETS MEMBERS NAVIGATE AROUND THE SERVICE BY USING A COMPUTER MOUSE TO POINT AT COLORFUL ICONS A VERSION OF THE PROGRAM COMPATIBLE WITH APPLE COMPUTER INCORPORATED'S MACINTOSH COMPUTERS IS TO BE RELEASED THIS MONTH WHILE ANOTHER VERSION FOR SYSTEMS USING MICROSOFT CORPORATION'S WINDOWS IS SLATED FOR INTRODUCTION IN MARCH GENIE ALSO WILL TRY TO EXPAND THE APPEAL OF ITS ON LINE GAMES BEYOND A CORE OF DEDICATED USERS THE SERVICE OFFERS QUOTE AIR WARRIOR QUOTE AN AERIAL COMBAT SIMULATION ALONG WITH OTHER SHOOT 'EM UP AND ROLE PLAYING GAMES GENIE'S GRAPHICALLY ORIENTED GAMES RESEMBLE OFFERINGS FROM THE IMAGINATION NETWORK AN ON LINE GAME VENTURE OF SIERRA ON LINE INCORPORATED AND AMERICAN TELEPHONE AND TELEGRAPH COMPANY UNLIKE THE TINY IMAGINATION NETWORK THOUGH GENIE PROVIDES BASIC NEWS INFORMATION AND RESEARCH SERVICES SIMILAR TO THOSE FOUND ON THE BIG THREE SERVICES STEVEN SIECK AN ANALYST AT LINK RESOURCES CORPORATION IN NEW YORK SAID THE HIDDEN GEM OF GENIE'S GAMES COULD PROVE TO BE AN IMPORTANT STRATEGIC ASSET AS THIS MARKET BROADENS THE ROLE OF GAMES AND ENTERTAINMENT WILL BE MORE AND MORE A KEY DRIVER MR. SIECK SAID IT'S HIGH TIME THAT GENIE RECOGNIZED THAT GENIE WON'T DISCLOSE HOW MANY MEMBERS IT HAS ESTIMATES PUT GENIE'S SUBSCRIBER BASE AT FOUR HUNDRED THOUSAND WITH LITTLE GROWTH IN NINETEEN NINETY THREE THAT PUTS IT IN FOURTH PLACE BEHIND AMERICA ONLINE WHICH RECENTLY ANNOUNCED THAT IT PASSED THE SIX HUNDRED THOUSAND USER MARK MR. BARBER WAS RELUCTANT TO DECLARE THE NEW ADVERTISEMENTS A SUCCESS AFTER ONLY A FEW WEEKS BUT DID SAY GENIE HAS OBSERVED AN INCREASE IN NEW MEMBERSHIPS INDUSTRY OBSERVERS ARE LESS CIRCUMSPECT THEY SAY THE EYE CATCHING ADVERTISEMENTS DEFINITELY ARE BEING NOTICED ALTHOUGH IT IS TOO EARLY TO PROJECT THEIR EVENTUAL IMPACT FOR NOW THE ADS ARE LIMITED TO COMPUTER ORIENTED CONSUMER PUBLICATIONS BUT WE ARE IN THE PROCESS OF LOOKING AT BROADENING IT MR. BARBER SAID IF GENIE SUCCEEDS IN CRAFTING A NEW IMAGE FOR ITSELF IT SHOULD BE ABLE TO PREVENT THE GAP BETWEEN IT AND THE BIG THREE FROM WIDENING BUT DON'T LOOK FOR AN AMERICA ONLINE STYLE SURGE IN GROWTH MR. BARBER SAID WE'RE MORE CONCERNED WITH WHAT IT TAKES TO PROFITABLY GROW HE SAID AMERICA ONLINE THEY'VE GOT MAJOR PUBLIC RELATIONS OUT THERE FOR CUSTOMERS THEY DON'T REALLY WANT IF YOU CAN'T BEAT 'EM JOIN EM THAT IS EVIDENTLY THE TACK THAT FIDELITY INVESTMENTS IS TAKING BY TRYING TO ISSUE AS MUCH AS ONE BILLION DOLLARS OF A NEW DERIVATIVE INVESTMENT BACKED LARGELY BY VOLATILE DEVELOPING NATION DEBT AND JUNK BONDS THE PRIVATELY PLACED INVESTMENT KNOWN AS THE GLOBAL YIELD TRUST POTENTIALLY PUTS THE BOSTON MUTUAL FUND GIANT IN DIRECT COMPETITION WITH LEADING WALL STREET INVESTMENT BANKERS WHO SELL SIMILAR QUOTE STRUCTURED QUOTE BONDS TO INSTITUTIONAL INVESTORS INCLUDING FIDELITY'S OWN MUTUAL FUNDS THEY ARE DEFINITELY CUTTING OUT ONE SERVICE THAT WALL STREET PROVIDES WHICH IS STRUCTURED FINANCE SAID AN OFFICIAL AT ONE INVESTMENT BANK RETURNS ON FIDELITY'S DERIVATIVE INVESTMENT WILL BE LINKED TO OR DERIVED FROM RETURNS ON THE UNDERLYING PORTFOLIO INCLUDING NOT ONLY FOREIGN SECURITIES AND JUNK BONDS BUT ALSO OTHER DERIVATIVES SUCH AS OPTIONS AND FUTURES ON INTEREST RATES CURRENCIES AND OTHER ASSETS BORROWING THE FINANCIAL ENGINEERING USED TO CREATE SUCH DERIVATIVES AS COLLATERALIZED MORTGAGE OBLIGATIONS AND KITCHEN SINK BONDS ANOTHER TYPE OF MORTGAGE ISSUE FIDELITY'S NEW TRUST WILL REPACKAGE THE CASH FLOWS OF THE UNDERLYING PORTFOLIO INTO NEW SECURITIES INTENDED TO BE MORE PALATABLE TO INSURANCE COMPANIES AND OTHER QUALIFIED INSTITUTIONAL BUYERS THE FABULOUS PERFORMANCE OF DEVELOPING NATION BONDS IN RECENT YEARS IS A POWERFUL LURE FOR INSTITUTIONS PINCHED BY LOW YIELDS IN THE U. S. BUT MANY PROS BELIEVE ALL THE BIG GAINS HAVE BEEN SQUEEZED OUT OF THOSE MARKETS ALREADY DOUBLE DIGIT TOTAL RETURNS ARE NO LONGER POSSIBLE WITHOUT DERIVATIVES SAYS IGNACIO SOSA MANAGING DIRECTOR IN CHARGE OF EMERGING MARKET SALES AT LEADING DERIVATIVES DEALER BANKERS TRUST BANKERS TRUST HAS REPACKAGED ABOUT ONE POINT THREE BILLION DOLLARS IN DEBT FROM DEVELOPING COUNTRIES SUCH AS ARGENTINA MEXICO MOROCCO AND TURKEY IN DEALS MEANT TO JUICE UP RETURNS WHICH ESSENTIALLY COMPETE WITH FIDELITY'S GLOBAL YIELD TRUST FIDELITY DIDN'T WISH TO COMMENT ON THE RECORD BUT INSURERS AND OTHERS FAMILIAR WITH FIDELITY'S MARKETING EFFORTS SAID THE TRUST HAS ANTICIPATED YIELDS OF ELEVEN PERCENT TO THIRTEEN PERCENT HOWEVER INVESTORS WILL SHOULDER CONSIDERABLE RISKS FOR THE CHANCE TO MAKE SUCH RETURNS AMONG THE HAZARDS ARE LACK OF LIQUIDITY OR THE ABILITY TO GET OUT OF THE INVESTMENT AND EXPOSURE TO FOREIGN MARKETS THAT MAY HAVE FEW BIG GAINS AND POTENTIALLY HARROWING SETBACKS IN THE FUTURE THE GLOBAL YIELD TRUST WILL ISSUE BONDS THAT ENABLE INSURANCE COMPANIES TO SKIRT CERTAIN REGULATIONS SUCH AS THOSE THAT FORCE THEM TO PUT UP EXTRA CAPITAL AGAINST HOLDINGS OF RISKY FOREIGN AND JUNK BONDS OR IN SOME CASES PROHIBIT THEM FROM OWNING SUCH SECURITIES AT ALL IN EFFECT THE TRUST WOULD PROVIDE A LOOPHOLE FOR INSURERS TO OWN MORE RISKY SECURITIES THAN WOULD BE PERMISSIBLE IF THEY BOUGHT THEM DIRECTLY ON AVERAGE INSURANCE COMPANIES AND PENSION FUNDS HOLD LESS THAN FIVE PERCENT OF THEIR TOTAL ASSETS OF OVER SIX TRILLION DOLLARS IN FOREIGN SECURITIES ANALYSTS ESTIMATE THOSE INSTITUTIONS WOULD HOLD AS MUCH AS EIGHT PERCENT SAY THE ANALYSTS IF IT WEREN'T FOR THE CAPITAL RULES FOR INSTANCE INSURERS MUST SET ASIDE AS MUCH AS NINE PERCENT OF THE VALUE OF ANY VENEZUELAN BRADY BONDS THEY PURCHASE COMPARED WITH NO RESERVE REQUIREMENTS FOR U. S. TREASURY BONDS BRADY BONDS ARE DEVELOPING NATION LOANS THAT HAVE BEEN REPACKAGED INTO BONDS UNDER GUIDELINES DEVELOPED BY FORMER TREASURY SECRETARY NICHOLAS BRADY FIDELITY'S DERIVATIVES ARE INTENDED TO LOWER THE OVERALL CAPITAL CHARGES AGAINST HOLDING RISKY DEBT PEOPLE CLOSE TO THE DEAL SAY EVEN SO THE GLOBAL YIELD TRUST HAS BEEN A HARD SELL ALTHOUGH AT LEAST ONE INSURANCE COMPANY HAS MADE PLANS TO INVEST IN THE TRUST A NUMBER OF LARGE INSURERS SAY THEY PLAN TO PASS IT UP SINCE THEY CAN STRUCTURE THEIR OWN PORTFOLIOS TO GET THE SAME OR BETTER RESULTS MARK ARNOLD CHIEF OPERATING OFFICER AT BEA ASSOCIATES A LARGE NEW YORK INVESTOR IN BRADY BONDS SAYS IT IS THE LIQUIDITY ISSUE THAT IS KEEPING US OUT OF MANY STRUCTURED DEALS DERIVATIVE BONDS WHILE THEY DELIVER POWERFUL UPSIDE RETURNS CAN ALSO DIVE DRAMATICALLY DEPENDING ON HOW THEY ARE STRUCTURED HE ADDS INSURANCE COMPANIES AND OTHERS FAMILIAR WITH FIDELITY'S MARKETING EFFORTS SAY THAT WHILE THERE HAVE BEEN A NUMBER OF CHANGES TO THE TRUST'S DESIGN SINCE LAST MAY MOST OF ITS MAJOR COMPONENTS ARE ESSENTIALLY THE SAME IN A MARKETING MEMORANDUM SENT OUT IN MAY FIDELITY SAID IT HOPED TO RAISE ONE BILLION DOLLARS FOR THE TRUST OF WHICH IT WILL INITIALLY INVEST THIRTY PERCENT TO SIXTY PERCENT IN DEVELOPING NATION SECURITIES TWENTY PERCENT TO FIFTY PERCENT IN GLOBAL BONDS AND AS MUCH AS TWENTY PERCENT IN U. S. JUNK BONDS THE TRUST WOULD INITIALLY HAVE FIFTY PERCENT OF ITS ASSETS IN SECURITIES RATED TRIPLE B. OR LOWER BY STANDARD AND POOR'S CORPORATION THE NEW YORK RATING AGENCY UNLIKE MOST STRUCTURED NOTES ON THE MARKET THE PORTFOLIO THAT BACKS THE GLOBAL YIELD TRUST WILL BE ACTIVELY MANAGED LIKE A NORMAL MUTUAL FUND FIDELITY PLANS TO BUY THE SECURITIES IT NEEDS FOR THE TRUST IN THE OPEN MARKET SINCE IN HOUSE RULES PROHIBIT IT FROM TAKING THE SECURITIES OUT OF THE PORTFOLIOS OF ITS MUTUAL FUNDS THE TRUST DOES HAVE SOME RESTRICTIONS IT CAN'T PUT MORE THAN TWENTY FIVE PERCENT OF ITS ASSETS IN A SINGLE ISSUER'S SECURITIES AND IT CAN'T INVEST MORE THAN SIXTY PERCENT OF ITS MONEY IN A SINGLE FOREIGN CURRENCY BUT OTHERWISE THE TRUST CAN BUY PRACTICALLY ANYTHING IT WANTS INCLUDING SOME INVESTMENTS THAT COULD REV UP POTENTIAL RETURNS AND RISKS EVEN FURTHER FOR EXAMPLE THE TRUST MAY INVEST IN OPTIONS AND FUTURES BASED ON ANY TYPE OF SECURITY INDEX OR CURRENCY RELATED TO ITS INVESTMENTS INCLUDING THOSE NOT TRADED ON EXCHANGES READS THE MEMORANDUM INDEED TEN PERCENT TO TWENTY FIVE PERCENT OF THE TRUST WILL BE INITIALLY INVESTED IN STRUCTURED NOTES AND OTHER DERIVATIVES THE DOCUMENT SAYS FIDELITY'S TRUST WHICH WOULD BE SET UP MUCH LIKE A CLOSED END FUND WILL ISSUE A FIXED NUMBER OF CLASS A AND CLASS B. DERIVATIVES WHICH ARE ESSENTIALLY LIKE SEVEN YEAR BONDS THE CLASS A BONDS ARE GUARANTEED THE FIRST THIRTY PERCENT OF RETURNS FROM THE TRUST'S PORTFOLIO AND WOULD BE PROTECTED FROM POTENTIAL LOSSES FIDELITY PLEDGES TO REDEEM CLASS A BONDS AT PAR VALUE EXCEPT IF THE TRUST'S WHOLE PORTFOLIO LOSES MORE THAN FORTY PERCENT THESE SENIOR SECURITIES WOULD QUALIFY FOR N. A. I. C. ONE RATINGS FROM THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS SO THEY'D ENJOY JUST A THREE PERCENT CAPITAL REQUIREMENT THE MEMORANDUM SAYS BUT BUYERS CAN'T HOLD JUST THE SAFE STUFF FOR EVERY CLASS A THEY PURCHASE THEY MUST ALSO BUY ONE POINT FIVE CLASS B. BONDS AND THEY MAY NOT SELL EITHER TYPE OF SECURITY SEPARATELY OR SELL THEM AT ALL WITHOUT THE APPROVAL OF THE TRUST'S OTHER INVESTORS THOSE TERMS ARE DESIGNED PARTLY TO PRESERVE THE ISSUE'S STATUS AS A PRIVATE PLACEMENT THE CLASS B. BONDS RECEIVE THE REMAINING SEVENTY PERCENT OF THE TRUST'S RETURNS BUT SHOULDER ONE HUNDRED PERCENT OF LOSSES UP TO A CERTAIN MAXIMUM AMOUNT IN EFFECT THEY ACT AS SHOCK ABSORBERS FOR THE CLASS A SHARES IF THINGS GO AWRY FIDELITY IS OBLIGATED TO BUY BACK INVESTORS' BONDS IN ORDER TO KEEP THE TRUST'S PORTFOLIO FROM FALLING BELOW EIGHTY PERCENT TO NINETY PERCENT OF ITS INITIAL VALUE FOR A CERTAIN PERIOD OF TIME SAID TO BE ONE MONTH IF FIDELITY CAN'T KEEP THE PORTFOLIO'S VALUE ABOVE THAT FLOOR IT MUST LIQUIDATE THE TRUST U. S. TREASURY NOTES AND BONDS MANAGED TO CARVE OUT MODERATE GAINS FRIDAY BEFORE TRADING WAS CUT SHORT BY THE SNOWSTORM THAT HIT THE EAST COAST THE PRICE OF THE BENCHMARK THIRTY YEAR TREASURY BOND ROSE MORE THAN ONE HALF POINT OR MORE THAN FIVE DOLLARS AND ZERO CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO YIELD SIX POINT FOUR OH PERCENT DOWN FROM SIX POINT FOUR FIVE PERCENT ON THURSDAY OVER THE COURSE OF THE ABBREVIATED SESSION PRICES WENT ON A WILD RIDE QUOTE TRADING WAS VERY CHOPPY QUOTE SAID CARY LEAHEY SENIOR FINANCIAL ECONOMIST AT LEHMAN GOVERNMENT SECURITIES INCORPORATED THERE WAS A LOT OF EARLY BOUNCING AROUND AND THERE WAS LIMITED DEMAND IN THE AFTERNOON INITIALLY THE MARKET SPIKED HIGHER FOLLOWING WHAT ANALYSTS TERMED NEUTRAL ECONOMIC NEWS AFTER A WEEK OF WORRYING ABOUT THE JANUARY PRODUCER PRICE INDEX REPORT THE DATA CAME IN CLOSE TO WHAT ANALYSTS HAD FORECAST THE P. P. I. GAINED ZERO POINT TWO PERCENT OVERALL AND ZERO POINT FOUR PERCENT EXCLUDING FOOD AND ENERGY RETAIL SALES MEANWHILE WERE WEAK DROPPING ZERO POINT FIVE PERCENT DURING JANUARY ACCORDING TO ANALYSTS THE SALES DATA WERE DEPRESSED BY THE UNSEASONABLY HARSH WINTER WEATHER AND THE SOUTHERN CALIFORNIA EARTHQUAKE BUT AFTER THE INITIAL MOVE HIGHER THE MARKET COLLAPSED BACK INTO NEGATIVE TERRITORY AS SOME ACCOUNTS USED THE HIGHER LEVELS TO UNLOAD SECURITIES EVENTUALLY HOWEVER INVESTORS WHO HAD HAD CASH PILE UP OVER THE COURSE OF THE WEEK BEGAN TO NIBBLE AT THE MARKET TAKING PRICES HIGHER THROUGH MIDDAY AT THE RECOMMENDATION OF THE PUBLIC SECURITIES ASSOCIATION TRADING ENDED AT TWO P. M. E. S. T. THE WHITE HOUSE IS CONSIDERING CUTTING TWO BILLION DOLLARS IN BENEFITS FOR ELDERLY IMMIGRANTS TO HELP PAY FOR WELFARE REFORM ACCORDING TO ADMINISTRATION OFFICIALS WHILE CUTTING OFF THE SUPPLEMENTAL SECURITY INCOME BENEFITS TO THE PARENTS OF LEGAL ALIENS IS HIGH ON THE ADMINISTRATION'S LIST CUTS ALSO COULD COME IN THE EMERGENCY HOUSING ASSISTANCE PROGRAM IN ADDITION THE ADMINISTRATION IS EXPLORING WHAT SAVINGS COULD BE ACHIEVED BY FERRETING OUT FRAUD IN THE RECENTLY EXPANDED EARNED INCOME TAX CREDIT FOR LOW INCOME FAMILIES THE ADMINISTRATION'S CHALLENGE IS TO FIND ENOUGH MONEY TO FULFILL THE PRESIDENT'S POLITICALLY POPULAR PLEDGE QUOTE TO END WELFARE AS WE KNOW IT QUOTE IN A TIME OF TIGHT FEDERAL BUDGETS MR. CLINTON'S DOMESTIC POLICY ADVISERS HAVE SPENT THE PAST SEVERAL WEEKS FLOATING SPENDING PROPOSALS IN SOME CASES ONLY TO SEE THEM SWIFTLY SHOT DOWN THE PRESIDENT WANTS TO ALLOW PEOPLE TO STAY ON WELFARE ONLY TWO YEARS BUT THE WHITE HOUSE SAYS WELFARE REFORM WILL REQUIRE BETWEEN FOUR BILLION DOLLARS AND SEVEN BILLION DOLLARS ANNUALLY ONCE IT IS FULLY PHASED IN BY NINETEEN NINETY NINE THOSE FUNDS WOULD PAY FOR JOB TRAINING AND PLACEMENT CHILD CARE AND A WORK PROGRAM FOR WELFARE RECIPIENTS WHO CAN'T FIND JOBS AFTER BENEFITS RUN OUT BECAUSE OF SPENDING CAPS ENACTED IN NINETEEN NINETY AND THE NEED FOR FUNDS TO FINANCE HEALTH CARE REFORM MONEY TO OVERHAUL WELFARE MUST COME ALMOST ENTIRELY FROM OTHER PROGRAMS THAT AID LOW INCOME AMERICANS THE WHITE HOUSE HASN'T YET FIGURED OUT HOW TO RAISE THE MONEY THAT WELFARE REFORM DEMANDS ADMINISTRATION OFFICIALS ARE BUSY BRINGING EXPECTATIONS IN LINE WITH BUDGETARY REALITY YOU COULD PHASE THIS PROGRAM IN OVER THE NEXT DECADE AND YOU'D STILL BE ENDING WELFARE AS WE KNOW IT AS LONG AS YOU'RE SENDING A CLEAR SIGNAL TO THE GENERATION THAT'S COMING INTO THE PROGRAM SAYS BRUCE REED A TOP DOMESTIC POLICY ADVISER TO THE PRESIDENT WHO IS SUPERVISING THE WELFARE REFORM EFFORT I DON'T THINK THAT HOW MUCH MONEY WE SPEND IS THE ONLY MEASURE OF OUR AMBITION AT A WHITE HOUSE MEETING ON JANUARY TWENTY FIFTH AS PRESIDENT CLINTON PREPARED A STATE OF THE UNION ADDRESS THAT HIGHLIGHTED WELFARE REFORM TWO TOP OFFICIALS FROM MR. CLINTON'S INTERAGENCY WORKING GROUP ON WELFARE PRESENTED CABINET OFFICIALS WITH A BUFFET OF IDEAS TO RAISE BETWEEN SIX POINT FIVE BILLION DOLLARS AND SEVEN POINT EIGHT BILLION DOLLARS AMONG THE OPTIONS DISCUSSED ACCORDING TO A NEW YORK TIMES ARTICLE YESTERDAY WAS THE TAXING OF WELFARE BENEFITS FOOD STAMPS AND HOUSING ASSISTANCE THAT IDEA COULD RAISE AS MUCH AS FOUR BILLION DOLLARS A YEAR BUT SEVERAL ADMINISTRATION OFFICIALS INCLUDING MR. REED SAY THE LOGISTICAL AND POLITICAL DIFFICULTIES OF SUCH A PLAN MAKE IT UNLIKELY ALSO DROPPED WAS THE IDEA OF CUTTING ONE POINT TWO BILLION DOLLARS FROM A SOCIAL SECURITY PROVISION THAT INCREASES BENEFITS BY NEARLY FIFTY PERCENT TO RETIRED FATHERS OF YOUNG CHILDREN NUMEROUS MEMBERS OF THE WORKING GROUP CONSIDERED THAT IDEA THE MOST SENSIBLE OF THE LOT BUT IT WAS DISCARDED BECAUSE IT WOULD FORCE THE WHITE HOUSE TO SAY IT WAS CUTTING SOCIAL SECURITY TO PAY FOR WELFARE REFORM WHAT'S LEFT ARE SPENDING CUTS AMOUNTING TO BETWEEN TWO POINT FIVE BILLION DOLLARS AND THREE BILLION DOLLARS AND PLANS TO CHECK INTO OTHER AREAS THAT MIGHT YIELD MORE THE IMMIGRANT AID CUT WOULD FOCUS ON LEGAL ALIENS WHO BRING THEIR PARENTS TO THE U. S. CURRENTLY THEY MUST PROMISE TO SUPPORT THEM FOR AS LONG AS FIVE YEARS ONCE THAT TIME PERIOD EXPIRES HOWEVER THE IMMIGRANT PARENTS ARE ELIGIBLE FOR SUPPLEMENTAL SECURITY INCOME AS A RESULT NONCITIZENS HAVE GROWN TO ACCOUNT FOR TWENTY PERCENT OF ALL THE ELDERLY ON SUPPLEMENTAL SECURITY INCOME THE ADMINISTRATION'S PROPOSAL THAT THE ELDERLY BE PROHIBITED FROM COLLECTING SUCH BENEFITS UNTIL THEY BECAME CITIZENS WOULD BRING IN ONLY TWO BILLION DOLLARS BECAUSE IT WOULD DEAL ONLY WITH NEW PEOPLE COMING INTO THE PROGRAM A SIMILAR PROPOSAL BY REPUBLICAN LAWMAKERS COULD SAVE AS MUCH AS SEVEN BILLION DOLLARS BY MAKING THE CITIZENSHIP RULE RETROACTIVE THAT WOULD THROW THOUSANDS OF ELDERLY IMMIGRANT RECIPIENTS OFF THE ROLLS ANOTHER ONE BILLION DOLLARS IN ANNUAL SPENDING BY NINETEEN NINETY NINE MIGHT BE CUT FROM EMERGENCY CASH ASSISTANCE FUNDS THAT PAY FOR HOMELESS SHELTERS AND GO TO LOW INCOME AMERICANS WHO FACE EVICTION OR TERMINATION OF UTILITY SERVICES ADMINISTRATION OFFICIALS COMPLAIN THAT STATES HAVE TAKEN ADVANTAGE OF THESE FEDERAL FUNDS FOR PROGRAMS THAT ONCE WERE BACKED BY STATE BUDGETS MEANWHILE OFFICIALS AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES ARE BUSY EXAMINING HOW MUCH MIGHT BE SAVED FROM IDENTIFYING FRAUD AND DUPLICATION WITHIN A SIXTEEN BILLION DOLLAR ANNUAL TAX CREDIT FOR LOW INCOME FAMILIES OF SPECIAL INTEREST A FATHER WHO MIGHT BE COLLECTING THE EARNED INCOME TAX CREDIT WHILE THE MOTHER OF HIS CHILD IS RECEIVING WELFARE SAVINGS MIGHT AMOUNT TO ANOTHER FIVE HUNDRED MILLION DOLLARS ADMINISTRATION OFFICIALS SAID THOUGH THE ESTIMATES ARE PRELIMINARY A SIMILAR AREA OF INVESTIGATION IS LIMITING THE NUMBER OF DRUG AND ALCOHOL ABUSERS WHO GET SUPPLEMENTAL SECURITY BENEFITS ON THE GROUNDS THEIR ADDICTION IS A DISABILITY AMONG THE WAYS OF NARROWING THE NUMBER OF SUCH RECIPIENTS IS THE IDEA OF PROVIDING BENEFITS ONLY TO PEOPLE WHO ENTER CERTAIN TYPES OF TREATMENT PROGRAMS IT'S UNCLEAR HOW MUCH MONEY THAT CHANGE WOULD SAVE TEXAS INSTRUMENTS INCORPORATED SAID IT DEVELOPED A COMPUTER CHIP SET DESIGNED FOR NOTEBOOK AND QUOTE SUBNOTEBOOK QUOTE COMPUTERS THE DEVICE DUBBED RIO GRANDE CUTS IN HALF THE NUMBER OF CHIPS NEEDED TO RUN MOST COMPUTER FUNCTIONS FEWER CHIPS IN TURN CAN REDUCE THE SIZE AND WEIGHT OF PORTABLE P. C.S THE CHIP SET IS PART OF A BROAD T. I. PUSH ANNOUNCED IN OCTOBER TO TAKE ON CHIP MAKERS INTEL CORPORATION AND ADVANCED MICRO DEVICES INCORPORATED FOR CONTROL OF THE MARKET FOR THE ELECTRONIC BRAINS THAT RUN PORTABLE COMPUTERS THE CHIP SET INCLUDES A FOUR EIGHTY SIX S. X. CLASS MICROPROCESSOR AND A SECOND CHIP THAT CONTROLS ACCESSORY SLOTS USED FOR FAX AND MODEM CAPABILITIES AND ADDITIONAL MEMORY A THIRD CHIP CONTROLS ALL OTHER STANDARD P. C. FUNCTIONS THE DALLAS COMPANY SAID IT EXPECTS TO START SHIPPING THE DEVICE THIS FALL DOUGLAS PATTON HAS A GREAT GOVERNMENT JOB HE HAS A SIX FIGURE SALARY A BIG OFFICE A SECRETARY AND AN ASSISTANT JUST ONE THING IS MISSING FOR THE PAST FEW MONTHS HE HAS HAD RELATIVELY LITTLE TO DO SINCE NINETEEN SEVENTY SIX MR. PATTON HAS SERVED AS CONGRESS'S NONVOTING REPRESENTATIVE ON THE FEDERAL ELECTION COMMISSION THE AGENCY THAT OVERSEES THE CAMPAIGN FINANCE LAWS CRITICS HAVE LONG SNEERED AT THE POSITION ARGUING THAT IT'S ABSURD FOR A GROUP THAT IS BEING REGULATED TO HAVE A SEAT AT THE REGULATOR'S TABLE LAST OCTOBER THE U. S. COURT OF APPEALS HERE TOOK ESSENTIALLY THE SAME VIEW IT RULED THAT THE INCLUSION OF CONGRESSIONAL EMPLOYEES ON THE F. E. C. VIOLATES THE CONSTITUTIONAL SEPARATION OF POWERS BETWEEN THE LEGISLATIVE AND EXECUTIVE BRANCHES OF GOVERNMENT WHILE THE CASE IS PENDING BEFORE THE SUPREME COURT MR. PATTON HAS BEEN UNABLE TO PARTICIPATE IN CLOSED DOOR COMMISSION MEETINGS AND HAS BEEN FORCED TO TURN BACK ALL CONFIDENTIAL F. E. C. DOCUMENTS IN HIS POSSESSION THAT HAS LEFT SOME WONDERING JUST WHAT HE DOES ALL DAY FOR A SALARY THAT IN NINETEEN NINETY THREE ACCORDING TO CONGRESSIONAL PAYROLL RECORDS TOTALED ONE HUNDRED EIGHT THOUSAND TWO HUNDRED THIRTY FOUR DOLLARS QUOTE THIS GUY IS JUST SITTING THERE AND TAKING UP SPACE QUOTE CHARGES REPRESENTATIVE BOB LIVINGSTON OF LOUISIANA WHO IS THE RANKING REPUBLICAN ON THE HOUSE SUBCOMMITTEE ON ELECTIONS ONLY IN WASHINGTON IT SEEMS COULD SOMEONE FIND HIMSELF IN MR. PATTON'S PREDICAMENT STUCK IN CONSTITUTIONAL LIMBO UNABLE TO CARRY OUT A JOB THAT IS HARD TO JUSTIFY IN THE FIRST PLACE MR. PATTON WHO CARRIES THE TITLE OF SPECIAL DEPUTY DECLINED TO COMMENT OVER THE PAST FEW WEEKS MR. PATTON'S STATUS HAS CAUSED GREAT CONSTERNATION INSIDE THE F. E. C. MR. PATTON'S BOSS CLERK OF THE HOUSE DONALD ANDERSON ASKED THE F. E. C. TO ALLOW THE SPECIAL DEPUTY TO MAINTAIN HIS NINTH FLOOR OFFICE AT THE AGENCY'S DOWNTOWN HEADQUARTERS UNTIL THE SUPREME COURT RESOLVES THE MATTER AFTER SOME HAND WRINGING THE F. E. C.'S SIX VOTING MEMBERS THREE DEMOCRATS AND THREE REPUBLICANS AGREED TO DO SO MEANWHILE SOME F. E. C. OFFICIALS ARE GRUMBLING PRIVATELY THAT MR. PATTON GETS TO KEEP HIS JOB WHILE THE F. E. C. IS SLATED TO BE SQUEEZED BY THE CLINTON BUDGET RELEASED LAST WEEK UNDER THE PRESIDENT'S PLAN THE F. E. C. SAYS IT WOULD BE FORCED TO CUT THIRTY THREE STAFF POSITIONS HOW MR. PATTON IS EARNING HIS PAY THESE DAYS ISN'T CLEAR TREVOR POTTER THE F. E. C. CHAIRMAN NOTES THAT HE HASN'T SEEN MR. PATTON SITTING IN THE AUDIENCE AT ANY OF THE AGENCY'S PUBLIC MEETINGS BUT F. E. C. OFFICIALS SAY MR. PATTON SENDS HIS ASSISTANT TO KEEP AN EYE ON THINGS AND SOME FIGURE MR. PATTON CAN KEEP PRETTY BUSY FIELDING CALLS FROM MEMBERS OF CONGRESS WHO HAVE QUESTIONS ABOUT THE ELECTION LAWS RAYMOND COLLEY THE DEPUTY CLERK OF THE HOUSE SAYS HE WON'T DISCUSS MR. PATTON'S SITUATION EXCEPT TO SUGGEST THAT MR. PATTON CONTINUES TO PLAY AN IMPORTANT LIAISON ROLE AT THE F. E. C. HE'S STILL OUR EYES AND EARS THERE MR. COLLEY SAYS OF COURSE TO CRITICS OF THE SPECIAL DEPUTY SLOT THAT'S PRECISELY THE PROBLEM SOME LIKE REPRESENTATIVE LIVINGSTON BELIEVE IT'S UNFAIR THAT BECAUSE THE DEMOCRATS CONTROL BOTH THE HOUSE AND SENATE IT'S THE DEMOCRATIC LEADERS WHO GET TO SELECT TWO SPECIAL DEPUTIES WHILE THE G. O. P. PICKS NONE THE SENATE SPECIAL DEPUTY RETIRED LAST SEPTEMBER AND HASN'T BEEN REPLACED BUT OTHERS THINK THE ISSUE IS MORE FUNDAMENTAL THEY CONTEND THAT THE SPECIAL DEPUTY NO MATTER WHICH PARTY APPOINTS HIM IS NOTHING BUT A SPY IN THE F. E. C.'S MIDST THERE IS NO LEGITIMATE RATIONALE FOR THE POST SAYS LARRY SABATO A PROFESSOR OF GOVERNMENT AT THE UNIVERSITY OF VIRGINIA WITH SUCH A SETUP THIS IS A COMMISSION GUARANTEED TO FAIL THE SPECIAL DEPUTY POSITIONS HAVE BEEN AROUND SINCE THE EARLY DAYS OF THE F. E. C. WHICH WAS ESTABLISHED IN THE AFTERMATH OF WATERGATE AT FIRST THE F. E. C. HAD EIGHT COMMISSIONERS SIX OF THEM TWO PICKED BY THE PRESIDENT TWO BY THE HOUSE AND TWO BY THE SENATE WERE VOTING MEMBERS IN ADDITION THE CLERK OF THE HOUSE AND THE SECRETARY OF THE SENATE EACH GOT TO ACT AS NONVOTING MEMBERS OF THE F. E. C. BUT IN NINETEEN SEVENTY SIX THE SUPREME COURT RULED THAT SUCH AN ARRANGEMENT VIOLATED THE SEPARATION OF POWERS PRINCIPLE SO CONGRESS REWROTE THE RULES THE PRESIDENT WOULD APPOINT AND THE SENATE CONFIRM ALL SIX VOTING MEMBERS OF THE F. E. C. YET DESPITE A STERN WARNING FROM ANTONIN SCALIA WHO WAS THEN A SENIOR JUSTICE DEPARTMENT OFFICIAL AND IS NOW A SUPREME COURT JUSTICE THAT THE PRESENCE OF CONGRESSIONAL REPRESENTATIVES PERPETUATES A SERIOUS CONSTITUTIONAL ISSUE THEY REMAINED PART OF THE F. E. C. CONGRESS WAS REAL NERVOUS AND I GUESS THEY WANTED TO KEEP AN EYE ON THE COMMISSION SAYS REPRESENTATIVE AL SWIFT THE WASHINGTON DEMOCRAT WHO HEADS THE HOUSE SUBCOMMITTEE ON ELECTIONS QUOTE THEY'RE STILL NOT OUR FAVORITE AGENCY BECAUSE THEY REGULATE US QUOTE HE ADDS BUT THAT HIGH LEVEL OF PARANOIA HAS SINCE ABATED INTO A SIMMERING ONE SCOTT THOMAS AN F. E. C. COMMISSIONER WHO HAS BEEN WITH THE AGENCY SINCE NINETEEN SEVENTY FIVE SAYS THAT HAVING THE SPECIAL DEPUTIES AROUND DOESN'T MAKE THINGS UNCOMFORTABLE I HAVEN'T REALLY SEEN ANY KIND OF IMPROPER INFLUENCE SAYS MR. THOMAS A DEMOCRAT REPUBLICAN JOAN AIKENS WHO HAS BEEN AN F. E. C. COMMISSIONER SINCE THE AGENCY'S CREATION SAYS THAT THE SPECIAL DEPUTIES OFTEN BRING ADDED PERSPECTIVE TO DELIBERATIONS WHEN QUESTIONS ARISE ON VARIOUS ISSUES THEY CAN PROVIDE USEFUL INFORMATION SHE SAYS NOTING THAT MR. PATTON FOR EXAMPLE IS A DIRECTOR OF FIRST NATIONAL BANK OF MARYLAND SLASH D. C. BUT SUCH SANGUINE FEELINGS HAVEN'T KEPT THE SPECIAL DEPUTY POST FROM BECOMING EMBROILED IN CONTROVERSY AFTER HE LOST HIS SENATE SEAT LAST YEAR GEORGIA DEMOCRAT WYCHE FOWLER WAS NAMED A SPECIAL DEPUTY EVEN THOUGH THE F. E. C. HAD GOTTEN COMPLAINTS ALLEGING THAT MR. FOWLER AND PAUL COVERDELL HIS REPUBLICAN OPPONENT WHO WON THE ELECTION HAD RECEIVED EXCESSIVE CAMPAIGN CONTRIBUTIONS FROM THEIR RESPECTIVE NATIONAL PARTIES MR. FOWLER WHO HAS SINCE LEFT THE F. E. C. FOR A PRIVATE LAW PRACTICE INSISTS THAT HIS SOLE MISSION AT THE AGENCY WAS TO HELP BRING ALONG CAMPAIGN FINANCE REFORM LEGISLATION I'D LIKE TO THINK I MADE A CONTRIBUTION HE SAYS LAST FALL'S APPEALS COURT DECISION HAS LED TO ITS OWN DIFFICULTIES THE CASE INVOLVED A CHALLENGE BY THE NATIONAL RIFLE ASSOCIATION OF AN F. E. C. RULING CONCERNING A TRANSFER OF FOUR HUNDRED SIXTEEN THOUSAND DOLLARS FROM ONE BRANCH OF THE N. R. A. TO THE GUN GROUP'S POLITICAL ACTION COMMITTEE THE APPEALS COURT AGREED WITH THE N. R. A. THAT THE F. E. C. COULDN'T PURSUE THE CASE BECAUSE OF THE SEPARATION OF POWERS PROBLEM NOW SEVEN OTHER F. E. C. RULINGS ARE BEING CHALLENGED ON THE SAME GROUNDS AMONG THEM ARE CASES INVOLVING FORMER PRESIDENTIAL CANDIDATES PAT ROBERTSON AND LYNDON LAROUCHE AS FOR MR. PATTON HE STILL HAS HIS SHARE OF DEFENDERS SHOULD HE BE LAID OFF UNTIL THE SUPREME COURT CASE IS DECIDED REPRESENTATIVE SWIFT ASKS QUOTE IS THAT FAIR QUOTE NONETHELESS THE CONGRESSMAN RECENTLY AGREED WITH REPRESENTATIVE LIVINGSTON TO CONSIDER ABOLISHING THE SPECIAL DEPUTIES POSITIONS AS PART OF A BROADER RESTRUCTURING OF THE F. E. C. IN THE MEANTIME MR. PATTON APPEARS TO BE TRYING TO FILL HIS TIME THE BEST HE CAN HE'S HERE WHEN I LEAVE AND I LEAVE AROUND SIX O'CLOCK SAYS JOHN SURINA THE F. E. C. STAFF DIRECTOR HE SEEMS VERY BUSY BUT THE ASSURANCE I CAN GIVE YOU IS THAT HE'S NOT BUSY ON MATTERS HE OUGHT NOT BE BUSY ON IS MORGAN STANLEY GROUP INCORPORATED TRYING TO SALVAGE A SOURED MERCHANT BANKING DEAL ON THE BACKS OF UNSUSPECTING INVESTORS THAT'S WHAT SOME ANALYSTS ARE SAYING ABOUT A ONE HUNDRED EIGHTY FIVE MILLION DOLLAR PRIVATE JUNK BOND ISSUE FOR WHICH MORGAN STANLEY IS THE SOLE MANAGER THE ISSUE IS FOR SULLIVAN COMMUNICATIONS INCORPORATED AND A SISTER COMPANY LARGE COMMERCIAL PRINTING CONCERNS THAT MORGAN HAS CONTROLLED SINCE APRIL ANALYSTS CITE SEVERAL SIGNIFICANT PROBLEMS WITH THE OFFERING AMONG THEM SULLIVAN HAS VIRTUALLY NO CASH FLOW TO PAY THE BONDS' INTEREST LOSSES FROM ITS COUPON BOOKLET BUSINESS APPEAR TO BE MOUNTING THE COMPANY IS LIKELY TO SPEND THE OFFERING'S NET PROCEEDS BY DECEMBER AND THE OFFERING MEMORANDUM SHOWN TO PROSPECTIVE BUYERS APPEARS TO BE LESS THAN CANDID ABOUT SULLIVAN'S COUPON PRINTING PAGE COUNT ANALYSTS SAY MEANWHILE MORGAN FACES POTENTIAL CONFLICTS IN THE DEAL WHICH IS SET TO BE PRICED TOMORROW TWO SULLIVAN DIRECTORS ARE MORGAN EXECUTIVES THE INVESTMENT BANK'S MORGAN STANLEY LEVERAGED EQUITY FUND TWO UNIT HOLDS THE MAJORITY OF SULLIVAN'S EQUITY AND MORGAN STANDS TO POCKET UNDERWRITING FEES OF SIX POINT FIVE MILLION DOLLARS FOR BUYING NEW SULLIVAN NOTES AND DEBENTURES AND RESELLING THEM TO INVESTORS QUOTE IT'S AN UNCONSCIONABLE OFFERING FROM THE POINT OF VIEW OF ANY FISCAL RESPONSIBILITY AND IS RIFE WITH CONFLICTS OF INTEREST QUOTE SAYS C. CLIVE MUNRO AN ANALYST SPECIALIZING IN THE PRINTING BUSINESS AT MONTECITO RESEARCH IN SAINT JOHN VIRGIN ISLANDS MORGAN'S HOPE IS THAT THERE ARE SOME BIG SUCKERS OUT THERE WHO CAN'T READ A FINANCIAL STATEMENT THE INVESTMENT BANK'S FEE HE ADDS ISN'T BAD FOR BAILING THEMSELVES OUT THROUGH A SUCCESSFUL OFFERING MORGAN EFFECTIVELY WOULD BE BUYING TIME FOR BELEAGUERED SULLIVAN SO IT CAN REAP A RETURN ON ITS INVESTMENT IF AND WHEN THE PRINTING COMPANY REBOUNDS SOME ANALYSTS SAY OFFICIALS AT MORGAN AND SULLIVAN DECLINED TO COMMENT CITING REGULATORY RESTRICTIONS ON TALKING ABOUT PENDING UNDERWRITING DEALS THE MORGAN SULLIVAN OFFERING PROVIDES A PEEK INTO THE SHADOWY WORLD OF PRIVATE PLACEMENTS WHICH ARE SOLD TO SOPHISTICATED INSTITUTIONAL INVESTORS AND DON'T REQUIRE MANY OF THE RIGID REGULATORY REQUIREMENTS OF PUBLIC OFFERINGS THE DEAL ALSO UNDERSCORES THE CONFLICTS WALL STREET INVESTMENT BANKS FACE WHEN ACTING AS MERCHANT BANKERS USING THEIR OWN MONEY TO INVEST IN DEALS AND UNDERWRITERS AND IT REFLECTS EXCESSES IN THE BOOMING MARKET FOR NEW HIGH YIELD HIGH RISK JUNK BONDS SOME ANALYSTS SAY MORGAN'S RELATIONSHIP WITH SULLIVAN DOESN'T VIOLATE ANY SECURITIES REGULATIONS INDEED MORGAN AND OTHER INVESTMENT BANKS TYPICALLY INVEST IN MERCHANT BANKING DEALS AND IT'S NOT UNUSUAL FOR THEIR EXECUTIVES TO SIT ON THE BOARDS OF THE FIRMS INVOLVED MORGAN'S CLOSE RELATIONSHIP WITH BRENTWOOD TENNESSEE BASED SULLIVAN BEGAN IN APRIL THAT'S WHEN A GROUP FORMED BY MORGAN'S LEVERAGED BUYOUT UNIT ALONG WITH OTHER INSTITUTIONAL INVESTORS AND MANAGERS INVESTED FORTY MILLION DOLLARS IN THE PRINTING CONCERN MORGAN WHICH AT THIS POINT APPEARS UNWILLING TO ANTE UP MORE MONEY INTO SULLIVAN CURRENTLY OWNS SIXTY SEVEN PERCENT OF THE COMPANY'S OUTSTANDING COMMON SHARES AND SEVENTY FOUR PERCENT OF ITS PREFERRED SHARES BUT SULLIVAN HASN'T FARED WELL IN RECENT YEARS ONE OF SULLIVAN'S MAJOR BUSINESS LINES PRINTING THE COUPON BOOKLETS THAT ARE TUCKED INTO NEWSPAPERS EACH WEEK AROUND THE COUNTRY IS BADLY DETERIORATING TRIGGERED BY OVERCAPACITY AND PRICE CUTTING IN RECENT YEARS WITH CURRENT SELLING PRICES AND SHRINKING BOOKLETS SULLIVAN'S LOSSES ARE LIKELY TO REACH THIRTY FIVE MILLION DOLLARS FROM ITS COUPON BUSINESS FOR CALENDAR NINETEEN NINETY FOUR SAY ANALYSTS WHO FOLLOW THE COUPON PRINTING BUSINESS IT HAS HAD SLUMPING REVENUE AND GROSS MARGINS AND EARNINGS BEFORE NET INTEREST EXPENSE INCOME TAXES DEPRECIATION AND AMORTIZATION HAVE FALLEN EVERY YEAR SINCE NINETEEN NINETY THE COMPANY'S CASH FLOW FROM OPERATIONS MUST BE SUBSTANTIALLY INCREASED IN ORDER FOR THE COMPANY TO BE ABLE TO MEET ITS DEBT SERVICE OBLIGATIONS THE OFFERING MEMO SAYS BUT THERE'S A HITCH SULLIVAN'S COUPON BUSINESS EXPECTS TO FACE CONTINUED PRICING PRESSURE AND NEGATIVE GROSS MARGINS THE MEMO SAYS SULLIVAN ADDS THAT IT EXPECTS TO FUND INCREASED OPERATING LOSSES IN THAT BUSINESS WITH A PORTION OF THE OFFERING'S NET PROCEEDS QUOTE I LOOK AT THIS AND QUESTION THE FIDUCIARY RESPONSIBILITY OF A PORTFOLIO MANAGER THAT BUYS A DEBT DEAL WITH VIRTUALLY NO CASH FLOW COVERAGE QUOTE SAYS GREGORY EKIZIAN AN ANALYST AT EAGLE ASSET MANAGEMENT IN TAMPA FLORIDA HERE'S HOW THE CASH FROM THE OFFERING WILL BE SPENT MORGAN ALONG WITH ITS ACCOUNTING AND LAW FIRMS WILL RECEIVE A FEE TOTALING ABOUT NINE MILLION DOLLARS ABOUT ONE HUNDRED THIRTY THREE POINT FIVE MILLION DOLLARS WILL GO TO REPAY BANK LOANS THAT LEAVES FORTY THREE MILLION DOLLARS FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES THE MEMO SAYS BUT WITH NINETEEN NINETY FOUR CASH INTEREST COSTS OF TWENTY FIVE MILLION DOLLARS AND CAPITAL SPENDING OF FIFTEEN MILLION DOLLARS SULLIVAN WOULD RUN THROUGH NEARLY THE ENTIRE FORTY THREE MILLION DOLLARS BY DECEMBER ANALYSTS SAY THE DEAL HAS TWO PARTS ONE HUNDRED THIRTY FIVE MILLION DOLLARS OF SENIOR STEP UP NOTES DUE TWO THOUSAND FOUR FOR SULLIVAN GRAPHICS INCORPORATED A SISTER COMPANY AND FIFTY MILLION DOLLARS OF SENIOR DISCOUNT DEBENTURES DUE TWO THOUSAND SIX PLUS WARRANTS TO BUY COMMON AND PREFERRED STOCK OF SULLIVAN COMMUNICATIONS THE SULLIVAN GRAPHICS' NOTES WILL PAY ANNUAL INTEREST OF SEVEN PERCENT FOR THE FIRST THREE YEARS AND FOURTEEN PERCENT FOR SEVEN YEARS STEP UPS ARE NOTES WITH TWO SEPARATE INTEREST RATES TYPICALLY THE NOTE PAYS A LOWER RATE INITIALLY THEN STEPS UP OR JUMPS TO A HIGHER RATE THE OFFERINGS ARE A RISKY BET FOR INVESTORS SULLIVAN'S TOTAL INDEBTEDNESS IS ABOUT THREE HUNDRED MILLION DOLLARS WITH SHAREHOLDER EQUITY OF JUST TWO POINT EIGHT MILLION DOLLARS INDEED THE COMPANY'S EARNINGS HAVEN'T COVERED FIXED CHARGES IN THE PAST FOUR YEARS MOREOVER SULLIVAN SAYS ITS ABILITY TO PAY CASH INTEREST ON THE DEBENTURES BEGINNING IN TWO THOUSAND IS ALMOST ENTIRELY DEPENDENT UPON THE EARNINGS OF ITS SUBSIDIARIES AND THE DISTRIBUTION OF THOSE EARNINGS ANALYSTS CITE SOME QUESTIONABLE ASSERTIONS IN THE OFFERING DOCUMENT FOR INSTANCE THE MEMO SAYS THE NUMBER OF PAGES PER ISSUE PUBLISHED BY SULLIVAN HAS INCREASED STEADILY SINCE THE COMPANY ENTERED THE COUPON FREESTANDING INSERT MARKET ON THE CONTRARY MONTECITO'S MR. MUNRO ASSERTS THAT THE COMPANY'S AVERAGE PAGE COUNTS PER ISSUE HAVE FALLEN TO THIRTEEN POINT TWO IN JANUARY FROM TWENTY POINT SEVEN IN NINETEEN NINETY THREE'S THIRD QUARTER MORGAN WILL COMPENSATE INVESTORS FOR THE RISKS WITH AN ATTRACTIVE YIELD SOME WALL STREET EXECUTIVES SAY THESE EXECUTIVES ARGUE THAT INVESTORS IN SUCH ONE FORTY FOUR A PRIVATE PLACEMENTS NAMED FOR THE SECURITIES AND EXCHANGE COMMISSION RULE THAT LIFTS CERTAIN REGISTRATION REQUIREMENTS ARE SAVVY ENOUGH TO PROPERLY ASSESS MATTERS THEY ASSERT THAT SULLIVAN HAS SUFFICIENT CASH FLOW TO PAY THE BONDS' INTEREST AND THEY SAY SULLIVAN SIMPLY IS TRYING TO REFINANCE ITS SHORT TERM DEBT OBLIGATIONS AND CHANGE ITS CAPITAL STRUCTURE TO MATCH THOSE OF ITS TWO MAJOR COMPETITORS THE SULLIVAN DEAL IS TICKLISH FOR MORGAN TWO SULLIVAN DIRECTORS ARE MORGAN EXECUTIVES FRANK V. SICA A MANAGING DIRECTOR AND JAMES S. HOCH A PRINCIPAL QUOTE AS A RESULT OF THESE RELATIONSHIPS MORGAN STANLEY GROUP INCORPORATED HAS EFFECTIVE CONTROL OVER THE MANAGEMENT AND POLICIES OF THE COMPANY QUOTE THE OFFERING MEMO SAYS THOUGH SULLIVAN HAS STUMBLED ITS SENIOR EXECUTIVES HAVE THRIVED JAMES T. SULLIVAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER RECEIVED A NINETEEN NINETY TWO SALARY OF SIX HUNDRED THOUSAND DOLLARS EVEN AS THE COMPANY LOST MORE THAN TWENTY SEVEN MILLION DOLLARS ACCORDING TO THE MEMO MERCK AND COMPANY'S MARTIN J. WYGOD TOLD A GROUP OF ANALYSTS THAT THE PREMIER DRUG MAKER WOULD CHANGE FROM QUOTE ONE OF THE HIGHEST MARGIN PHARMACEUTICAL COMPANIES TO ONE OF THE LOWEST QUOTE BECAUSE OF ITS ACQUISITION OF MEDCO CONTAINMENT SERVICES INCORPORATED OTHER MERCK OFFICIALS HASTENED TO TEMPER THE MEDCO CHAIRMAN'S CHARACTERIZATION AFTER AN ANALYSTS MEETING ON FRIDAY BUT THE DRAMATIC STATEMENT DROVE HOME THE POINT THAT MERCK IS CHANGING INTO A VERY DIFFERENT COMPANY TO RESPOND TO A RAPIDLY CHANGING PHARMACEUTICAL MARKET A COUPLE HUNDRED ANALYSTS BRAVED A RAGING BLIZZARD TO ATTEND MERCK'S FIVE HOUR EXPLANATION OF ITS BUSINESS STRATEGY CHIEFLY REGARDING MEDCO THE MAIL ORDER PHARMACY AND MANAGED CARE COMPANY IT BOUGHT LAST YEAR IN HIS FIRST PUBLIC PRESENTATION AS A MERCK EXECUTIVE MR. WYGOD WAS CLEARLY THE FOCUS OF ANALYSTS' INTEREST BOTH AS MEDCO'S ARCHITECT AND AS THE MOST TALKED ABOUT CONTENDER FOR MERCK'S CHAIRMANSHIP AFTER P. ROY VAGELOS RETIRES IN NOVEMBER IN JANUARY MERCK SAID IT WAS MERGING MEDCO INTO A NEW UNIT CALLED MERCK MEDCO U. S. MANAGED CARE DIVISION WHICH ALSO INCLUDED MERCK'S EXISTING MANAGED CARE BUSINESS MR. WYGOD WAS NAMED HEAD OF THE U. S. AND CANADIAN PRESCRIPTION DRUG OPERATIONS WHICH INCLUDE THE NEW DIVISION TO HELP ANALYSTS UNDERSTAND THE FINANCIAL IMPLICATIONS OF MERCK'S NEW STRATEGY HE DESCRIBED A DEFLATIONARY PHARMACEUTICAL ENVIRONMENT WHERE PROFITS ARE DRIVEN BY MARKET SHARE RATHER THAN BY MARGINS JUDY C. LEWENT MERCK CHIEF FINANCIAL OFFICER SAID MEDCO'S NINE PERCENT PRETAX MARGIN WILL ERODE MERCK'S THIRTY FIVE PERCENT MARGIN BUT ONLY TO THE LEVEL OF OTHER PHARMACEUTICAL COMPANIES MARGINS ARE AN OBSOLETE FINANCIAL INDICATOR SHE ADDED AND AGREED THAT MARKET SHARE AND CASH FLOW WILL BE THE NEW MEASURES OF SUCCESS MR. WYGOD SAID MEDCO IS AGGRESSIVELY GOING AFTER NEW BUSINESS TO EXPAND ITS MARKET SHARE THE NUMBER OF PEOPLE PARTICIPATING UNDER MEDCO PROGRAMS HAS GROWN BY NINETEEN PERCENT TO THIRTY EIGHT MILLION SINCE THE MERGER WAS ANNOUNCED IN JULY TO WIN NEW BUSINESS FROM HEALTH PLANS FOR WHICH MEDCO MANAGES PHARMACY COSTS THE COMPANY HAS BEEN DEVELOPING CAPITATION AND OTHER RISK SHARING AGREEMENTS MR. WYGOD SAID CAPITATION COMES IN VARIOUS FORMS BUT GENERALLY THE SUPPLIER SUCH AS MERCK MEDCO AGREES TO CHARGE A HEALTH PLAN A PER PERSON FIXED RATE PER MONTH OR PER YEAR REGARDLESS OF THE AMOUNT OF DRUGS THE HEALTH PLAN ACTUALLY USES MR. WYGOD ADDED THAT CAPITATION WILL BE ONE OF THE MOST RAPIDLY GROWING TYPES OF AGREEMENTS WITH HEALTH PLANS OVER THE NEXT FIVE YEARS IN ANOTHER SIGN OF HOW MUCH THINGS HAVE CHANGED MERCK OFFICIALS SAID THE COMPANY IS GIVING GENERIC DRUGS A PROMINENT PLACE IN THE MERCK PRODUCT LINEUP GENERIC DRUGS WILL PLAY A CENTRAL ROLE IN MERCK'S OVERSEAS STRATEGY SAID JERRY T. JACKSON EXECUTIVE VICE PRESIDENT OF MERCK'S OVERSEAS BUSINESS DESPITE STRENUOUS EFFORTS TO CONTROL DRUG COSTS MOST COUNTRIES HAVEN'T USED GENERIC DRUGS TO ANY MEANINGFUL EXTENT HE SAID AS MERCK TAKES ITS MEDCO STRATEGY ABROAD IT WILL USE GENERICS TO SHOW THE COST REDUCTION POSSIBILITIES HE SAID DOCTOR VAGELOS SAID THE COMPANY PLANS TO RAISE ITS RESEARCH AND DEVELOPMENT SPENDING BY TWELVE PERCENT TO ONE POINT THREE BILLION DOLLARS IN PART TO PAY FOR OUTCOMES RESEARCH WHICH MANAGED CARE CUSTOMERS ARE DEMANDING TO DETERMINE THE COST EFFECTIVENESS OF A DRUG EDWARD M. SCOLNICK MERCK'S RESEARCH HEAD UPDATED THE STATUS OF DRUGS IN DEVELOPMENT INCLUDING FOSAMAX THE OSTEOPOROSIS TREATMENT THE COMPANY PLANS TO SUBMIT FOR GOVERNMENT APPROVAL NEXT YEAR A HOST OF OTHER PROSPECTS INCLUDING DRUGS TO TREAT MIGRAINES ASTHMA AND AIDS WERE PARTIALLY UNVEILED WITH THE PROMISE OF MORE DETAILS AT AN APRIL ANALYST MEETING DEVOTED TO RESEARCH AS MERCK OUTLINED ITS STRATEGY FOR THE COMING YEARS ANALYSTS CONTINUED TO WONDER HOW OTHER COMPANIES WOULD RESPOND TO THE CHANGING MARKETPLACE WHERE POWERFUL MANAGED CARE BUYERS ARE PUTTING PRESSURE ON PRESCRIPTION DRUG PRICES BY DEMANDING DISCOUNTS TALK OF AN ALLIANCE BETWEEN DRUG COMPANIES DOMINATED A PFIZER INCORPORATED ANALYST MEETING EARLIER IN THE WEEK AND AMID A RALLY IN MCKESSON CORPORATION SHARES SPECULATION SWIRLED THAT THE BIG DRUG DISTRIBUTOR WHICH OWNS P. C. S. HEALTH SYSTEMS INCORPORATED WAS AN ACQUISITION TARGET OF A DRUG COMPANY OR CONSORTIUM OF COMPANIES P. C. S. WHICH SERVICES ABOUT FORTY FIVE MILLION PEOPLE IS MEDCO'S CHIEF COMPETITOR MOREOVER MCKESSON OWNS ONE OF THE LARGEST DRUG WHOLESALERS IN NORTH AMERICA WE CAN BE A VERY VALUABLE PARTNER TO ANY DRUG COMPANY OR CONSORTIUM A MCKESSON SPOKESMAN SAID BUT HE ADDS WE BELIEVE WE'RE BUILDING A COMPANY FOR THE FUTURE WE HAVE EXCELLENT LONG TERM PROSPECTS AND WE INTEND TO PURSUE OUR VISION AS AN INDEPENDENT COMPANY HE DECLINED TO DISCUSS RUMORS OF A MERGER OR ALLIANCE IN THE WORKS INDUSTRY EXECUTIVES AND ANALYSTS ACKNOWLEDGE THAT COMPANIES ARE EXPLORING ACQUISITIONS AND OTHER ALTERNATIVES TO RESPOND TO MERCK MEDCO AND THE MARKETPLACE UPHEAVAL INVESTMENT BANKERS AND CONSULTANTS HAVE TO STAND IN LINE TO PITCH MERGER AND OTHER IDEAS TO DRUG COMPANIES ONE INVESTMENT BANKER SAID WE GET A SENSE THERE'S A LOT OF CONFUSION AMONG THE MANUFACTURERS SAID AN INDUSTRY OFFICIAL JAPANESE STOCKS WERE SHARPLY LOWER EARLY MONDAY IN THE WAKE OF THE FAILED TRADE TALKS BETWEEN THE U. S. AND JAPAN THE NIKKEI STOCK AVERAGE ENDED THE MORNING SESSION AT NINETEEN THOUSAND FOUR HUNDRED SEVENTY FIVE POINT SIX FIVE DOWN FIVE HUNDRED FIFTEEN POINT OH FIVE POINTS OR TWO POINT SIX PERCENT TRADING VOLUME WAS RELATIVELY THIN WITH MOST INVESTORS WAITING TO SEE IF THE RECENT MARKET RALLY HAD INDEED BEEN BROKEN THE MARKET WAS FALLING IN RESPONSE TO THE STRONGER YEN WHICH MADE STRONG GAINS AFTER THE U. S. JAPAN TRADE TALKS COLLAPSED FRIDAY A STRONGER YEN MAKES JAPANESE GOODS MORE EXPENSIVE OVERSEAS AND COULD BATTER JAPAN'S EXPORT DEPENDENT ECONOMY THE STOCK MARKET HAS GAINED FIFTEEN PERCENT THIS YEAR ON EXPECTATIONS OF A JAPANESE BUSINESS RECOVERY BUT A SHARPLY STRONGER YEN COULD CHANGE THAT FORECAST THE CURRENCY WAS TRADING AT ONE HUNDRED SIX POINT ONE SEVEN YEN TO THE DOLLAR MONDAY COMPARED WITH ONE HUNDRED EIGHT POINT TWO FIVE YEN BEFORE THE TRADE TALKS COLLAPSED QUOTE THE YEN'S APPRECIATION AS A RESULT OF THE TRADE TALKS HAS REALLY CHANGED THE SITUATION QUOTE IN THE MARKET SAID SHIGERU AKIBA HEAD OF YEN EQUITY TRADING AT U. B. S. SECURITIES LIMITED THE MARKET COULD GO INITIALLY AS LOW AS NINETEEN THOUSAND TWO HUNDRED IN RESPONSE TO THE STRONGER YEN HE ADDED EXPORT DEPENDENT COMPANIES SUCH AS ELECTRONICS MANUFACTURERS AND AUTOMOBILE MAKERS WERE AMONG MONDAY MORNING'S BIGGEST CASUALTIES LONDON SHARES LOST GROUND FRIDAY PARTLY ON JITTERS ABOUT U. S. ECONOMIC DATA BUT ENDED UP FROM LOWS A PATTERN FOR MANY OTHER EUROPEAN BOURSES FRANKFURT STOCKS TUMBLED ONE POINT THREE PERCENT BECAUSE OF FALLING GERMAN BOND PRICES THE TOKYO MARKET WAS CLOSED FRIDAY FOR A JAPANESE HOLIDAY WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED SIXTEEN POINT OH TWO UP ZERO POINT TWO TWO REFLECTING INCREASES IN AMERICAN AND ASIA SLASH PACIFIC MARKETS AND A DROP IN MARKETS IN EUROPE FISHING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT SEVENTY EIGHT POINT FOUR OH UP ONE POINT TWO OH OR ONE POINT FIVE FIVE PERCENT WITH UNICORD OF THAILAND POSTING A FIVE PERCENT GAIN IN ITS LOCAL CURRENCY HEALTH CARE STOCKS TRAILED AT ONE HUNDRED FIFTY SEVEN POINT EIGHT ONE DOWN TWO POINT EIGHT THREE OR ONE POINT SEVEN SIX PERCENT WITH COLUMBIA SLASH H. C. A. HEALTHCARE OF THE U. S. SLIDING FOUR POINT SIX THREE PERCENT IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX DROPPED TWENTY EIGHT POINT ONE POINTS TO THREE THOUSAND THREE HUNDRED SEVENTY EIGHT POINT NINE MAKING LAST WEEK'S SLIDE TOTAL NINETY SIX POINT FIVE POINTS THE F. T. THIRTY STOCK INDEX DECLINED TWENTY FOUR POINT ONE POINTS TO TWO THOUSAND FIVE HUNDRED NINETY FIVE POINT THREE VOLUME WAS NINE HUNDRED EIGHTY EIGHT POINT TWO MILLION SHARES COMPARED WITH NINE HUNDRED NINETY FIVE MILLION SHARES A DAY EARLIER THE BENCHMARK ONE HUNDRED INDEX FELL IN MORNING DEALINGS ON NERVOUSNESS ABOUT U. S. DATA ON RETAIL SALES AND PRODUCER PRICES AND THE GENERAL UNEASINESS KEPT PRICES WEAK THE F. T. ONE HUNDRED'S INTRADAY LOW WAS THREE THOUSAND THREE HUNDRED FORTY NINE POINT THREE ONCE THE U. S. ISSUED THE ECONOMIC REPORTS SHOWING PRODUCER PRICES ROSE LESS THAN EXPECTED LAST MONTH AND RETAIL SALES FELL A BIT MORE THAN ANTICIPATED SHARES IN LONDON ROSE A LITTLE THOUGH WALL STREET OPENED SLIGHTLY WEAKER LONDON INVESTORS WERE RELIEVED THAT THE DATA DIDN'T PRODUCE A U. S. SELL OFF AND PRICES ON THE BRITISH BOURSE MOVED UP FROM LOWS STILL PRICES WERE IN NEGATIVE TERRITORY MOST OF THE DAY WITH THE MAIN INDEX MARKING A TRADING HIGH OF THREE THOUSAND THREE HUNDRED EIGHTY EIGHT POINT THREE LAST WEEK'S DROP WAS VIEWED AS A HEALTHY CORRECTION TO HELP ENSURE A MORE SUSTAINABLE RISE IN THE LONG TERM THIS WEEK THE MARKET EXPECTS BRITISH DATA ON INFLATION RETAIL SALES AND EMPLOYMENT AND COMPANY FINANCIAL RESULTS WILL PLAY A BIGGER ROLE IN THE DIRECTION OF THE MARKET WHICH EXPECTS STRONG PROFIT IMPROVEMENTS IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX LOST TWENTY EIGHT POINT THREE FIVE POINTS TO TWO THOUSAND NINETY POINT SIX ONE MARKING THE FIFTH SESSION OF SHARP SWINGS AND A DROP OF FORTY SEVEN POINT SIX FOUR POINTS LAST WEEK DEALINGS HAVE BEEN TECHNICALLY FOCUSED WITH A STRONG LINK BETWEEN MOVEMENTS IN GERMAN BOND FUTURES AND STOCK PRICES INVESTORS UNCERTAIN ABOUT FURTHER GERMAN INTEREST RATE CUTS HAVE BEEN CAUTIOUS LEAVING THE MARKET DOMINATED BY TRADERS TAKING SHORT TERM POSITIONS WHICH ALSO INCREASES VOLATILITY THURSDAY'S SHARP DROP ON WALL STREET ALSO PRESSURED FRANKFURT STOCKS FRIDAY WHEN ISSUES SENSITIVE TO INTEREST RATES SUCH AS BANKS AND INSURERS WERE HIT HARDEST AS IN LONDON PARIS STOCKS SLID BUT ENDED UP FROM LOWS WHEN THE MAIN INDEX HAD SUNK TWO PERCENT AFTER THE RELEASE OF THE U. S. PRICE DATA WHCH WERE CONSIDERED ENCOURAGING ESPECIALLY THE PRODUCER PRICE REPORT AND IN AMSTERDAM SHARES FELL BUT FINISHED ABOVE THEIR LOWEST LEVELS AS A FIRMER START ON WALL STREET IMPROVED SENTIMENT FOLLOWING A LONDON LED SELL OFF ALSO INFLUENCED BY PRE WEEKEND POSITIONING AND THE U. S. DOLLAR'S WEAKNESS IN MADRID EQUITIES FELL DRAGGED DOWN BY A LARGER THAN EXPECTED RISE IN SPAIN'S CONSUMER PRICE INDEX FOR JANUARY THOUGH PRICES CAME UP FROM TROUGHS AFTER THE U. S. PRODUCER PRICE REPORT AND WALL STREET'S EARLY RISE IN STOCKHOLM PRICES DROPPED SHARPLY AND BROADLY LED DOWN BY OVERBLOWN EXPECTATIONS ABOUT THE TELECOMMUNICATIONS SECTOR A TENDENCY TOWARD HIGHER SWEDISH LENDING RATES AND POOR PERFORMANCES ON OTHER STOCK EXCHANGES IN ZURICH SHARES RECOUPED SOME OF THE STEEP EARLY LOSSES THAT HAD PUSHED THE MARKET DOWN TWO PERCENT BUT STILL FINISHED LOWER REBOUNDS OCCURRED AFTER THE RELEASE OF THE U. S. DATA LURING BARGAIN HUNTERS INTO THE MARKET WHICH LAST WEEK DROPPED A TOTAL OF ABOUT FIVE PERCENT IN BRUSSELS THE MARKET ENDED MAINLY LOWER THOUGH A LATE SURGE LEFT SOME STOCKS HIGHER IN SYDNEY STOCKS ROSE DESPITE SOME PROFIT TAKING AND THE MARKET ENDED THE WEEK WITH SMALL GAINS THOUGH INVESTORS WERE NERVOUS BECAUSE OF A DECLINE OF FOREIGN INVESTORS BUYING POSITIONS AND SPECULATION THAT U. S. STOCKS MAY FALL THIS WEEK IN MANILA PRICES EDGED HIGHER IN LIGHT VOLUME BOOSTED BY LOCAL RETAIL BUYING AMID A CONTINUING TECHNICAL REBOUND FOLLOWING LAST MONDAY'S PLUNGE IN WELLINGTON SHARES FINISHED LOWER IN QUIET TRADING REFLECTING WEAKNESS IN SOME OVERSEAS MARKETS IN BANGKOK EQUITIES ROSE SLIGHTLY IN THE LOWEST VOLUME THIS YEAR OWING TO BEARISH SENTIMENT WITH MOST PLAYERS ON THE SIDELINES BECAUSE OF THE CHINESE NEW YEAR HOLIDAY WHICH CLOSED BOURSES IN HONG KONG SINGAPORE KUALA LUMPUR SEOUL AND TAIPEI 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END WHEN KIM YOUNG SAM CAMPAIGNED FOR PRESIDENT IN LATE NINETEEN NINETY TWO HE GOT SOME OF HIS BIGGEST OVATIONS BY VOWING TO TAME CHAEBOLS THE HUGE CONGLOMERATES THAT DOMINATE SOUTH KOREA'S ECONOMY A YEAR AFTER PRESIDENT KIM'S INAUGURATION HIS CAMPAIGN RHETORIC HAS SLAMMED INTO THE REALITY OF KOREA'S INDUSTRIAL CULTURE A CAMPAIGN AIMED AT BREAKING UP THE MOSTLY FAMILY OWNED CHAEBOLS HAS ALL BUT EVAPORATED AND BIG BUSINESS NOW APPEARS STRONGER THAN EVER AS IT PREPARES TO MONOPOLIZE A TWELVE YEAR FIFTY BILLION DOLLAR PROGRAM TO UPGRADE TELECOMMUNICATIONS SERVICES QUOTE NOTHING HAS CHANGED QUOTE SAYS THE CHAIRMAN OF A MIDSIZE CONGLOMERATE THE ADMINISTRATION HAD A CHANCE TO REFORM THE CHAEBOLS BUT THE WEAK ECONOMY FORCED IT TO BACK OFF MOST ECONOMISTS AGREE ON THE NEED TO RESTRAIN THE CHAEBOLS WHICH SPEARHEADED KOREA'S ECONOMIC DEVELOPMENT BUT NOW ARE CONSIDERED TOO BIG AND CLUMSY TO COMPETE IN MATURE EXPORT MARKETS THEIR HABIT OF USING THEIR SUCCESSFUL AFFILIATES TO SUBSIDIZE THEIR MONEY LOSING UNITS ALSO MAKES IT HARD FOR SMALL COMPETITORS TO BREAK INTO THE MARKET INDUSTRIALISTS ARE QUIETLY SCOFFING AT A GOVERNMENT PLAN UNVEILED LAST MONTH OFFERING INCENTIVES TO ENCOURAGE THE CHAEBOLS TO FOCUS ON TWO OR THREE CORE FIELDS A SIMILAR PROGRAM INTRODUCED IN NINETEEN NINETY ONE FAILED WE WILL CONTINUE TO FOCUS ON OUR MAIN BUSINESSES THE CHAIRMAN OF ONE OF KOREA'S LARGEST CHAEBOLS SAID RECENTLY OVER LUNCH AT SEOUL'S TONY METROPOLITAN CLUB BUT WE HAVE NO INTENTION OF SELLING OFF OUR OTHER BUSINESSES RATHER THAN REGROUP THE ADMINISTRATION APPEARS TO BE ROLLING OVER IN DECEMBER PRESIDENT KIM ASKED THE FEDERATION OF KOREAN INDUSTRIES AN ASSOCIATION OF CHAEBOLS TO CHOOSE A SINGLE CONSORTIUM TO BUILD THE COUNTRY'S SECOND CELLULAR PHONE NETWORK THE GOVERNMENT'S DECISION TO WASH ITS HANDS OF THE MATTER IS SO IT CAN AVOID THE MISTAKES OF A PREVIOUS TENDER FOR THE SAME PROJECT IN LATE NINETEEN NINETY TWO THE GOVERNMENT AWARDED THE CONTRACT TO A CONSORTIUM LED BY SUNKYONG GROUP BUT WITHDREW IT AMID CHARGES OF FAVORITISM THE GROUP'S CHAIRMAN CHEY JUNG HYON IS THE FATHER OF EX PRESIDENT ROH TAE WOO'S SON IN LAW BUT LEAVING THE DECISION UP TO THE CHAEBOL FEDERATION BOTHERS SOME BIDDERS BECAUSE SO MUCH IS AT STAKE THE SYSTEM WILL BE PART OF A MOBILE TELECOM BUSINESS EXPECTED TO PRODUCE AROUND SIX BILLION DOLLARS OF REVENUE ANNUALLY BY TWO THOUSAND KOREA MOBILE TELECOM COMPANY SERVES THE COUNTRY'S EXISTING MOBILE PHONE USERS WHICH NUMBER ABOUT FOUR HUNDRED THOUSAND THE NATION'S TOTAL NUMBER OF USERS IS EXPECTED TO GROW TO FOUR MILLION WITHIN THE NEXT SIX YEARS THREE FOREIGN FIRMS G. T. E. CORPORATION OF THE U. S. HONG KONG'S HUTCHISON TELECOMMUNICATIONS LIMITED AND BRITAIN'S VODAPHONE P. L. C. WERE ALL PART OF THE SUNKYONG LED GROUP THEY HAVE WAITED A YEAR FOR THE SECOND TENDER TO TAKE SHAPE ALONG WITH A COVEY OF OTHER FOREIGN COMPANIES INCLUDING SOUTHWESTERN BELL CORPORATION BELL ATLANTIC CORPORATION AND NYNEX CORPORATION ALL OF THE U. S. THE FEDERATION IS EXPECTED TO NAME THE LEADER OF THE MOBILE PHONE CONSORTIUM THIS WEEK AFTER REVIEWING TENDERS LATER THIS MONTH AFTER CONSULTING WITH THE WINNER IT WILL DECIDE WHICH COMPANIES WILL ROUND OUT THE GROUP PEOPLE CLOSE TO THE NEGOTIATIONS SAY THE BIDDING HAS SET OFF A FEEDING FRENZY AMONG THE COUNTRY'S TOP BUSINESS GROUPS THE LACK OF TRANSPARENCY IN THIS THING IS REMARKABLE SAYS A WESTERN DIPLOMAT WHO IS REPRESENTING SOME FOREIGN COMPANIES IN THE NEGOTIATIONS THE CHAEBOLS ARE ALL CUTTING BACKROOM DEALS SO THAT EVERYBODY'S HAPPY IRONICALLY THE FEDERATION OF KOREAN INDUSTRIES IS HEADED BY SUNKYONG'S MR. CHEY LATE LAST MONTH SUNKYONG SAID IT WAS PULLING OUT OF THE CELLULAR PHONE TENDER A WEEK LATER IT EMERGED WITH A TWENTY THREE PERCENT STAKE IN KOREA MOBILE TELECOM ACQUIRED THROUGH A GOVERNMENT AUCTION OF EIGHTY PERCENT OF THE COMPANY'S SHARES SIMILARLY THE TONGYANG GROUP ABANDONED ITS BID TO LEAD THE CELLULAR CONSORTIUM AFTER SNATCHING A TEN PERCENT SHARE OF DAECOM KOREA'S NUMBER TWO CARRIER OF INTERNATIONAL TELEPHONE AND DATA TRAFFIC FOLLOWING A GOVERNMENT AUCTION OF DAECOM SHARES LATE LAST YEAR SUNKYONG'S FOREIGN PARTNERS THREATENED TO TAKE LEGAL ACTION IN RESPONSE TO THE CHAEBOL'S DECISION TO BOLT THE MOBILE PHONE TENDER BUT HAVE SINCE FALLEN SILENT SOME OBSERVERS SUSPECT THEY HAVE BEEN MOLLIFIED WITH PROMISES OF A STAKE IN FUTURE TELECOMMUNICATIONS PROJECTS OR ARE SIMPLY HOLDING OUT FOR A PIECE OF THE CELLULAR CONSORTIUM G. T. E. STAMFORD CONNECTICUT IS QUOTE DEEPLY CONCERNED ABOUT THE PROCEEDINGS QUOTE OF THE TENDER SAID ANTHONY J. KNIGHT VICE PRESIDENT OF THE INTERNATIONAL BUSINESS DIVISION HE SAID G. T. E. HAS STUDIED ITS LEGAL POSITION IN DEPTH AND WILL PROTECT ITS INTERESTS AND THE INTEREST OF ITS SHAREHOLDERS BUT HE WOULDN'T SAY IF THE COMPANY PLANS TO TAKE LEGAL ACTION AGAINST SUNKYONG ACCORDING TO TERMS OF THE SECOND TENDER TWENTY PERCENT OF THE EQUITY IN THE NEW CONSORTIUM CAN GO TO FOREIGN COMPANIES THAT IS DOWN FROM THE INITIAL TENDER'S THIRTY THREE PERCENT RATIO WHICH HAS IRKED U. S. TRADE OFFICIALS DURING BILATERAL TRADE TALKS IN WASHINGTON EARLIER THIS MONTH U. S. NEGOTIATORS TRIED IN VAIN TO HAVE THE FOREIGN EQUITY PORTION RETURNED TO ITS ORIGINAL LEVEL WITH SUNKYONG AND TONGYANG APPARENTLY OUT OF THE RUNNING IN THE MOBILEPHONE BID A COMPANY NAMED KOLON GROUP IS NOW THE PRIME CANDIDATE TO LEAD THE CONSORTIUM POHANG IRON AND STEEL COMPANY KOREA'S LEADING STEEL MANUFACTURER HAD EXPRESSED AN INTEREST IN RUNNING THE GROUP BUT WILL CONTENT ITSELF WITH AN EXCLUSIVE CONTRACT TO PROVIDE FIBER OPTIC CABLE SYSTEMS PEOPLE CLOSE TO THE BIDDING SAY TEXANS ARE STILL SORTING OUT THE IMPLICATIONS OF SENATOR KAY BAILEY HUTCHISON'S SUDDEN ACQUITTAL ON ETHICS CHARGES FRIDAY THE JURY RETURNED A DIRECTED VERDICT OF NOT GUILTY AFTER TRAVIS COUNTY DISTRICT ATTORNEY RONNIE EARLE REFUSED TO PROCEED WITH THE TRIAL THE JUDGE HAD REFUSED TO ASSURE THE PROSECUTOR THAT HIS EVIDENCE WOULD BE ADMISSIBLE POLITICAL PUNDITS SAY THE COLLAPSE OF MR. EARLE'S DUBIOUS PROSECUTION SPELLS TROUBLE FOR HIM AND HIS LONGTIME ALLY GOVERNOR ANN RICHARDS GOVERNOR RICHARDS FACES QUESTIONS ABOUT HER OFFICE'S SHREDDING OF TELEPHONE RECORDS WE CAN THINK OF ONE IMPLICATION OF THE HUTCHISON ACQUITTAL RONNIE EARLE SHOULD RESIGN HIS SELECTIVE PROSECUTIONS OF POLITICAL FIGURES HAVE POISONED THAT STATE'S GOVERNMENT LONG ENOUGH IN FACT TEXAS OUGHT TO DISMANTLE ITS PECULIAR SYSTEM UNDER WHICH THE ELECTED DISTRICT ATTORNEY FOR TRAVIS COUNTY WHICH CONTAINS THE STATE CAPITOL OF AUSTIN OVERSEES THE ETHICS OF THE ENTIRE STATE GOVERNMENT BY TEXAS STANDARDS AUSTIN IS SO LIBERAL THAT THIS ARRANGEMENT IS ROUGHLY EQUIVALENT TO ALLOWING THE VOTERS OF RADICAL BERKELEY TO ELECT THE PROSECUTOR IN CHARGE OF POLICING ALL CALIFORNIA'S OFFICEHOLDERS THE INCENTIVE FOR STACKING TEXAS JUSTICE IS JUST TOO STRONG IN A SENSE THE FLIMSY HUTCHISON PROSECUTION SO WIDELY PUBLICIZED WAS BENEATH THE IMAGE MODERN TEXANS ARE TRYING TO PROJECT OF THE STATE TEXAS HAS BECOME A FIRST CLASS STATE IN DIVERSIFIED BUSINESSES AND A GATEWAY TO MEXICO THERE ARE EVEN STIRRINGS LATELY OF CLEANING UP THE STATE'S EGREGIOUS TORT LIABILITY SYSTEM SENDING THE EARLE ERA PACKING WOULD BE AN IMPORTANT FIRST STEP TOWARD DEPOLITICIZING TEXAS JUSTICE GALVESTON HOUSTON COMPANY HOUSTON SAID ITS BOARD APPROVED A SPECIAL DIVIDEND OF SHARES OF ITS BETTIS CORPORATION SUBSIDIARY SPINNING OFF THAT UNIT TO SHAREHOLDERS UNDER THE PLAN GALVESTON HOUSTON STOCKHOLDERS WILL RECEIVE ONE SHARE OF BETTIS FOR EVERY TWO COMMON SHARES OF GALVESTON HOUSTON THEY OWN GALVESTON HOUSTON MAKES AND SELLS CONSTRUCTION AND MINING PRODUCTS BETTIS MAKES AND SELLS VALVE ACTUATORS AS PART OF THE PLAN WHICH HINGES ON RECEIVING A FAVORABLE TAX OPINION AND IS SUBJECT TO REGULATORY APPROVAL GALVESTON HOUSTON SAID IT WON'T CONTINUE ITS ONE CENT DIVIDEND GERMANY HAS JUST LEARNED THAT MORE THAN FOUR MILLION OF ITS WORKERS ARE UNEMPLOYED A POSTWAR RECORD THE INDUSTRIAL POWERHOUSE OF EUROPE IS IN TROUBLE AND ITS INDUSTRIES ARE TRYING TO LIGHTEN THE SHIP THE JANUARY STATISTICS WERE A SHOCK TO CHANCELLOR HELMUT KOHL'S GOVERNMENT ECONOMICS MINISTER GUENTER REXRODT SAID THAT QUOTE HIGH UNEMPLOYMENT THREATENS NOT ONLY OUR ECONOMIC ORDER BUT ALSO THE FOUNDATIONS OF OUR SOCIETY QUOTE THAT COULD BE AN EXAGGERATION THE U. S. ALSO SUFFERED HEAVY LAYOFFS IN ITS RECESSION WHICH BEGAN BEFORE GERMANY'S WITH RECOVERY AMERICAN INDUSTRY IS LEANER AND MEANER AND SHOWING STRONG PRODUCTIVITY GAINS GERMANY MAY DO THE SAME WHEN RECESSION HAS RUN ITS COURSE BUT THEN IT MAY NOT IF IT DOESN'T IT WILL BE BECAUSE THE GERMAN ECONOMY CARRIES A LOT MORE BAGGAGE THAN THE AMERICAN ECONOMY ITS TOTAL TAX BURDEN ALTHOUGH BY NO MEANS THE HIGHEST IN EUROPE IS SOME TWENTY FIVE PERCENT ABOVE THAT OF THE U. S. RELATIVE TO ITS SIZE THAT'S BECAUSE GERMANY IS A MORE ADVANCED WELFARE STATE IT HASN'T BEEN SO LONG AGO THAT MANY GERMANS AND OTHER EUROPEANS WOULD REGARD THAT OBSERVATION AS PRAISE THEY WERE HAPPY WITH AND EVEN PROUD OF WELFARE STATE INSTITUTIONS ON A CONTINENT THAT HAS HAD MORE THAN ITS SHARE OF CIVIL AND POLITICAL STRIFE IN THIS CENTURY IT WAS OFTEN ASSUMED THAT THE WELFARE STATE CONTRIBUTED TO STABILITY BY GIVING THE TOTAL POPULATION RICH AND POOR ALIKE A SENSE OF SOCIAL JUSTICE THE PRICE WAS ADMITTEDLY HIGH BUT EUROPEANS FOR GOOD HISTORICAL REASONS PLACED A HIGH VALUE ON SOCIAL AND POLITICAL ORDER AND WERE WILLING TO PAY FOR A SYSTEM THAT PROMISED TO DELIVER THAT THE WIDESPREAD PERCEPTION THAT THE WELFARE STATE DELIVERED FREE GOODS ALSO CONTRIBUTED HEAVILY TO ITS POLITICAL APPEAL TO BE SURE THERE WAS CONCERN IN THE NINETEEN SEVENTIES AND NINETEEN EIGHTIES ABOUT EUROSCLEROSIS BUT IN THE LATE NINETEEN EIGHTIES AND EARLY NINETEEN NINETIES EUROPE WAS REAPING THE FRUITS OF THE EUROPEAN COMMUNITY'S DESTRUCTION OF TRADE BARRIERS AND ITS PROSPECTS LOOKED BRIGHT MANY GERMANS IN PARTICULAR FELT THAT THEY INHABITED THE BEST OF ALL POSSIBLE WORLDS ONE IN WHICH THEY ENJOYED GOOD PAY LONG VACATIONS A FAIRLY EFFICIENT NATIONAL HEALTH CARE SYSTEM AND MANY SOCIAL WELFARE BENEFITS NOW AFTER MORE THAN A YEAR OF RENEWED EUROSCLEROSIS ALL THAT HAS CHANGED EUROPEAN GOVERNMENTS FACED WITH MOUNTING BUDGET DEFICITS DEBT FINANCING PROBLEMS AND POPULAR RESISTANCE TO FURTHER TAX INCREASES ARE FINALLY HAVING TO PARE AWAY WELFARE STATE BENEFITS GERMANS WILL GET SHORTER HOLIDAYS THE DUTCH LESS GENEROUS DISABILITY PAY THE BRITISH HIGHER DRUG COSTS AND ALL GOVERNMENTS WITH ELEVEN PERCENT OF THE EUROPEAN UNION WORK FORCE UNEMPLOYED ARE CONTEMPLATING CUTBACKS IN UNEMPLOYMENT BENEFITS THIS IS NOT GOING DOWN WELL WITH ELECTORATES THERE ARE STRIKES IN GERMANY BELGIUM SPAIN AND PORTUGAL AND A POLITICAL UPHEAVAL IN ITALY FRENCH FARMERS AND FISHERMEN EXPRESS THEIR DISCONTENT IN DRAMATIC WAYS BY DUMPING MANURE ON THE STEPS OF GOVERNMENT BUILDINGS OR SOAKING IMPORTED FISH WITH DIESEL OIL IN OTHER WORDS THE POLITICS OF THE WELFARE STATE HAVE REVERSED THEMSELVES WITH SOCIAL PROGRAMS NOW A POLITICAL LIABILITY RATHER THAN A WAY TO WIN VOTES THIS TIME THE POLITICAL FALLOUT IS BROADER THAN IN THE PAST EUROPE'S SOCIALISTS LOST THEIR WAY A LONG TIME AGO THEY FAILED TO SEE SOON ENOUGH THAT THE NATIONALIZATION OF INDUSTRY PART OF THE SOCIALIST CREDO FOR DECADES AFTER WORLD WAR TWO WOULD TURN ON THEM WITH DESTRUCTIVE FORCE THIS REALIZATION STRUCK WITH SPECIAL IMPACT IN BRITAIN WHERE THE LABOUR PARTY IN THE NINETEEN SEVENTIES WAS SHOCKED TO LEARN THAT HEAVILY FEATHERBEDDED STATE INDUSTRIES SUCH AS BRITISH STEEL BRITISH MOTORS AND BRITISH RAIL ONCE POLITICALLY USEFUL FOR DISTRIBUTING PATRONAGE HAD TURNED INTO BUDGET EATING MONSTERS LABOUR WENT DOWN TO DEFEAT IN NINETEEN SEVENTY NINE MAGGIE THATCHER BEGAN SELLING OFF THESE HUGE LIABILITIES AND LABOUR HAS NEVER REGAINED ITS FORMER POWER TODAY ALL OF EUROPE INCLUDING THAT GREAT SOCIALIST LABORATORY WITH ITS HEADQUARTERS IN MOSCOW IS BEING PRIVATIZED STATE INDUSTRIAL PATRONAGE HAS DESTROYED BOTH THE CHRISTIAN DEMOCRATIC AND SOCIALIST PARTIES IN ITALY AND BADLY DAMAGED SOCIALISTS IN FRANCE NO ONE DARES UTTER THAT OLD LINE ABOUT HOW UTOPIA ARRIVES WHEN THE STATE CONTROLS THE MEANS OF PRODUCTION THE WELFARE STATE IS DIFFERENT HOWEVER IT HAS NOT BEEN THE EXCLUSIVE PROPERTY OF SOCIALISTS BUT HAS BEEN DEFENDED AS WELL BY THE LIKES OF HELMUT KOHL AND JOHN MAJOR EVERYBODY TIPTOES AROUND THE ISSUE OF WHETHER IT FINALLY MAY BECOME NECESSARY TO TAKE AN AX RATHER THAN MERELY A PENKNIFE TO THE COSTS OF THIS KIND OF SYSTEM SWEDISH ECONOMIST ASSAR LINDBECK OFFERED A BRILLIANT ANALYSIS OF THE WELFARE STATE'S PROBLEMS IN A PAPER DELIVERED LAST OCTOBER AS PART OF A LECTURE SERIES SPONSORED BY DE NEDERLANDSCHE BANK IN AMSTERDAM HE CONSTRUCTED A BALANCE SHEET OF ACHIEVEMENTS VERSUS COSTS HIS CONCLUSION WAS THAT YES INDEED WELFARE STATES OF EUROPE ARE VERY MUCH IN NEED OF REFORM THE FUNDAMENTAL PROBLEM OF THE WELFARE STATE THAT HE CITED WILL COME AS NO SURPRISE TO ITS CRITICS OVER THE YEARS WHEN IT GIVES TOO MUCH TO THOSE WHO ARE IDLE AND TAKES AWAY TOO MUCH FROM THOSE WHO ARE NOT IT DESTROYS THE INCENTIVES OF BOTH TO WORK AND PRODUCE THEOLOGIAN MICHAEL NOVAK DESCRIBES THIS AS THE MORAL HAZARD OF THE WELFARE STATE ITS TENDENCY TO GENERATE SLOTH AND EVEN DISHONESTY AS SEEKERS OF BENEFITS BEGIN TO CHEAT THE RULES AND THE MOST HEAVILY BURDENED TAXPAYERS BEGIN TO CHEAT THE TAX COLLECTOR THERE ARE OTHER SERIOUS PROBLEMS LABOR MOBILITY IS REDUCED BECAUSE LAID OFF WORKERS PREFER TO DRAW UNEMPLOYMENT COMPENSATION RATHER THAN SEEK WORK AND OFTEN FEEL TIED BY THE SOCIAL SYSTEM TO THEIR JOBS AND COMMUNITIES FAMILY STRUCTURES ARE DESTROYED AS THE STATE TAKES OVER FAMILY RESPONSIBILITIES FOR ALL THESE REASONS EUROPEAN ECONOMIES ARE LESS ADAPTABLE LESS ABLE TO WEATHER AND PULL OUT OF RECESSIVE BUSINESS CYCLES LONGER TERM PROBLEMS SUCH AS THE THE AGING WORK FORCE AND THE SOCIAL PROBLEMS GENERATED BY IMMIGRATION ARE AGGRAVATED AS SOCIAL BENEFITS DIMINISH PRODUCTIVITY AND AT THE SAME TIME ATTRACT IMMIGRANTS OF COURSE YOUNG IMMIGRANT LABORERS HELP SUPPORT RETIREES BUT THEY NOW HAVE ARRIVED IN SUCH NUMBERS THAT THEY ARE NO LONGER WELCOME IN MUCH OF EUROPE WHILE EUROPE'S POLITICIANS ARE TRYING TO GET OUT OF THIS WEB WITH THEIR SKINS BILL CLINTON IS INVITING HIS FELLOW DEMOCRATS TO GET FURTHER IN CONGRESSIONAL DEMOCRATS SHOULD ASK GUENTER REXRODT IF HE IS ENJOYING POLITICAL LIFE THESE DAYS LOMAK PETROLEUM INCORPORATED SAID ITS PROVEN RESERVES INCREASED TWO HUNDRED FORTY FIVE PERCENT TO SEVENTEEN MILLION BARRELS OF OIL EQUIVALENT ON DECEMBER THIRTY FIRST NINETEEN NINETY THREE COMPARED WITH A YEAR EARLIER FIVE MILLION BARRELS THE COMPANY SAID IT HAD RESERVES OF SEVENTY FOUR POINT FIVE SIX BILLION CUBIC FEET OF NATURAL GAS COMPARED WITH YEAR EARLIER RESERVES OF SEVENTEEN POINT SIX ONE BILLION CUBIC FEET LOMAK PETROLEUM ALSO REPORTED RESERVES OF FOUR POINT FIVE MILLION BARRELS OF OIL AN INCREASE OF ONE HUNDRED TWENTY NINE PERCENT FROM A YEAR EARLIER TWO MILLION BARRELS YEAR IN WHICH TONYA HARDING LAST LANDED A TRIPLE AXEL IN COMPETITION NINETEEN NINETY ONE NUMBER OF TELEVISION MOVIES EXPECTED TO DEAL WITH THE FIGURE SKATING SCANDAL STORY THREE NUMBER OF BOOKS BEING RELEASED IN FEBRUARY ON THE SCANDAL TWO NUMBER OF TIMES HER MOTHER HAS MARRIED SIX NUMBER OF HOURS HARDING SLEPT UPON ARRIVAL AT THE ALBERTVILLE GAMES SIXTEEN SHE CLAIMS NEVER TO SUFFER JET LAG SUGAR APPEARS POISED TO SWEETEN TRADERS' PROFITS QUOTE PRICES SHOULD RISE IN COMING MONTHS QUOTE SAYS CHRISTOPHER PACK HEAD OF RESEARCH AT C. CZARNIKOW SUGAR FUTURES LIMITED A LONDON SUGAR MERCHANT DEMAND FOR THE SWEETENER CURRENTLY EXCEEDS SUPPLIES HE SAYS AND UNTIL SOUTHERN HEMISPHERE NATIONS SUCH AS AUSTRALIA AND SOUTH AFRICA SELL LARGER CROPS LATER IN THE YEAR THE MARKET WILL BE SUPPORTED BY THE SUPPLY SHORTAGE ADDS JUDITH GANES SENIOR COMMODITY ANALYST AT MERRILL LYNCH WORLD SUGAR STOCKS ARE SET TO DROP TOWARD HISTORICALLY LOW LEVELS EQUIVALANT TO TWENTY EIGHT PERCENT OF CONSUMPTION AT THOSE LEVELS SHE SAYS THE MARKET TIGHTENS AND SUGAR FUTURES CONTRACTS TRADED IN NEW YORK AND LONDON TEND TO BREAK INTO HIGHER PRICE RANGES SUGAR FUTURES HAVE TRADED IN A RANGE OF NINE CENTS TO ELEVEN CENTS A POUND SINCE LAST MAY MS. GANES SAYS SHE ESTIMATES THAT THEY COULD RISE TO NEARLY SIXTEEN CENTS IN NINETEEN NINETY FIVE PARTICULARLY IF INVENTORIES REMAIN INSUFFICIENT TO MEET IMPORTERS' REQUIREMENTS WORLD SUGAR DEMAND OF ABOUT ONE HUNDRED FOURTEEN MILLION METRIC TONS COULD EXCEED PRODUCTION THIS YEAR BY TWO MILLION TO THREE MILLION TONS SAYS MR. PACK OF C. CZARNIKOW MOST OF THE SUGAR PRODUCED IS CONSUMED BY ITS PRODUCERS HE SAYS LEAVING ONLY AROUND TWENTY SIX MILLION TONS TRADED ON THE INTERNATIONAL MARKET A RELATIVELY SMALL DIFFERENCE BETWEEN INTERNATIONAL SUPPLY AND DEMAND CAN THEREFORE HAVE A STRONG IMPACT ON INTERNATIONAL TRADE AND WORLD PRICES MR. PACK SAYS A MAJOR INFLUENCE ON THE MARKET THIS YEAR WILL BE IMPORT REQUIREMENTS OF INDIA AND CHINA BOTH NATIONS ARE HUGE CONSUMERS AND PRODUCERS OF SUGAR MR. PACK SAYS SINCE CROPS WILL BE FAR LOWER THAN EXPECTATIONS THE MARKET WILL CLOSELY MONITOR THEIR IMPORTS MEANWHILE CONTINUING CONCERNS ABOUT THE POTENTIALLY SMALL SIZE OF THE CUBAN CROP AND TO A LESSER EXTENT THE OUTPUT OF THAILAND AND BRAZIL ARE ALSO BOLSTERING PRICES MR. PACK SAYS ANALYSTS HAVE DOUBTS ABOUT OFFICIAL CUBAN STATISTICS WHICH STATE THE COUNTRY'S PRODUCTION IS AS HIGH AS FOUR POINT FIVE MILLION TONS THEY BELIEVE THAT SHORTAGES OF FUEL FERTILIZER AND SPARE PARTS FOR FARMING AND PROCESSING EQUIPMENT MEAN THAT THE HARVEST WILL BE MUCH LOWER THAN THAT MEANWHILE THE RUSSIAN INTERFAX NEWS AGENCY QUOTED OLEG DAVYDOV RUSSIA'S MINISTER OF FOREIGN ECONOMIC RELATIONS AS SAYING THAT RUSSIA WILL SELL CUBA FOUR MILLION TONS OF CRUDE OIL THIS YEAR IN EXCHANGE FOR TWO POINT FIVE MILLION TONS OF SUGAR THE MARKET EXPECTED THAT LESS CUBAN SUGAR WOULD BE BARTERED FOR RUSSIAN OIL ANALYSTS SAY THAT IMPLIES THERE WILL BE EVEN LESS CUBAN SUGAR AVAILABLE FOR PURCHASE BY THE INTERNATIONAL MARKET SUGAR HAS PROVED TO BE AN EXTRAORDINARILY VOLATILE COMMODITY IN THE PAST PLUNGING TO TWO POINT FIVE CENTS A POUND IN NINETEEN EIGHTY FIVE FROM FORTY THREE CENTS IN NINETEEN EIGHTY AND THEN RISING SIXFOLD BY THE END OF THE DECADE ANY SUGAR BULL MARKET COULD BE LIMITED TO TWENTY CENTS THIS TIME ROUND ALTHOUGH BUYING BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY POTENTIALLY COULD ADD MOMENTUM NOT PRESENT IN THE PAST TWO FACTORS POTENTIALLY LIMITING THE UPSIDE POTENTIAL OF SUGAR PRICES ARE THAT MORE SUGAR SUBSTITUTES ARE AVAILABLE NOW AND CONSUMERS ARE MORE SENSITIVE TO RISING PRICES ANALYSTS SAY THE MOST DIFFICULT SUGAR SUPPLY DEMAND VARIABLE IS WORLD CONSUMPTION SAYS FARIDEH BROMFIELD HEAD OF SUGAR RESEARCH AT E. D. AND F. MAN SUGAR LIMITED AS SOON AS PRICES RISE DEMAND WILL FALL QUICKLY AND THE MARKET BALANCE WILL SHIFT TO SURPLUS FROM DEFICIT SHE SAYS IT IS MAINLY FOR THIS REASON THAT SUGAR PRICES FAILED TO MATCH OPTIMISTIC EXPECTATIONS LAST YEAR AND FAILED TO BREAK OUT OF A NARROW TRADING RANGE MS. BROMFIELD SAYS ILLUSTRATING THE POTENTIAL VOLATILITY OF THE MARKET HOWEVER WAS THE FACT THAT FUTURES PRICES IN NEW YORK JUMPED FIVE PERCENT IN VERY LITTLE TIME THE WEEK BEFORE LAST FOR MONTHS TRADERS HAD EXPECTED RUSSIA A MAJOR IMPORTER TO REDUCE SUGAR PURCHASES BECAUSE OF THE NATION'S ECONOMIC CRISIS AND A VIGOROUS IMPORT TAX THE COUNTRY WAS EXPECTED TO IMPOSE ON SUGAR WHEN RUMORS SPREAD THAT THE TAX WOULD BE LOWER THAN EXPECTED SUGAR PRICES SOARED DEALERS SAY LONDON DEALERS WERE SURPRISED THAT RUMORS OF SMALLER IMPORT RESTRICTIONS AFFECTED INTERNATIONAL PRICES ACCORDING TO RUSSIAN OFFICIALS RUSSIAN SUGAR IMPORTS FELL THIRTY PERCENT LAST YEAR TO TWO POINT SIX MILLION TONS MOREOVER LARGE CUBAN EXPORTS TO RUSSIA ARE LIKELY TO REDUCE RUSSIA'S ORDERS FROM WESTERN FARMERS THEY SAY CONSIDERING THE COLLAPSE OF THE RUBLE THE HYPER INFLATION AND RECESSION ANY IMPORT TAX SHOULD LIMIT RUSSIAN PURCHASES A LONDON DEALER SAYS ALMOST THREE YEARS AFTER THE PERSIAN GULF WAR THE BATTLE IS JUST BEGINNING FOR CORPORATIONS TRYING TO RECOUP BILLIONS OF DOLLARS THEY LOST IN IRAQ AND KUWAIT THE OUTCOME IS FAR FROM CERTAIN THE U. S. STATE DEPARTMENT IS IN THE FINAL STAGES OF COLLECTING AND SORTING THROUGH CLAIMS FROM AMERICAN COMPANIES THAT LOST PROPERTY OR BUSINESS DURING THE WAR BY APRIL FIRST THESE CLAIMS MUST BE SENT TO THE UNITED NATIONS COMPENSATION COMMISSION IN GENEVA WHICH IS CHARGED WITH ALLOCATING PAYMENTS FROM IRAQ TO COMPANIES AND INDIVIDUALS WHO SUSTAINED LOSSES IRAQ IS SUPPOSED TO CONTRIBUTE THIRTY PERCENT OF ITS OIL REVENUE TO VICTIMS OF THE WAR BUT SO FAR THE QUESTION OF WHEN IRAQ WILL START EXPORTING OIL IS MIRED IN NEGOTIATIONS OVER ENDING THE TRADE EMBARGO AND OVER OTHER POLITICAL ISSUES REMAINING FROM THE CONFLICT QUOTE THE FIRST QUESTION THAT OCCURS TO EVERYBODY IS WHERE IS THE MONEY GOING TO COME FROM QUOTE SAYS ARTHUR ROVINE A NEW YORK LAWYER FOR PEOPLE FILING CLAIMS IT'S CLEAR WHERE IT'S SUPPOSED TO COME FROM BUT WHEN IT WILL COME IS ANOTHER MATTER IT'S GOING TO BE A LONG TIME BEFORE COMPANIES GET THEIR MONEY HE ADDS CERTAINLY A GREAT DEAL OF MONEY IS AT STAKE SO FAR ABOUT ONE HUNDRED EIGHTY FIVE CLAIMS DEMANDING ONE POINT SIX BILLION DOLLARS HAVE BEEN FILED BY U. S. COMPANIES ACCORDING TO A STATE DEPARTMENT OFFICIAL THE COMPENSATION COMMISSION IN GENEVA SAYS IT HAS RECEIVED TWO THOUSAND THREE HUNDRED FIFTY TWO CLAIMS FROM COMPANIES IN MORE THAN THIRTY OTHER COUNTRIES ASSERTING LOSSES OF SOME EIGHT BILLION DOLLARS MORE THAN TWO THOUSAND MORE CORPORATE CLAIMS ARE EXPECTED BY THE DEADLINE THE DEMANDS FOR COMPENSATION ARE A HODGEPODGE ONE U. S. BUSINESS PUT IN A CLAIM FOR JUST ONE HUNDRED TWELVE DOLLARS THE KUWAITI NATIONAL OIL COMPANY PUT IN A NINE HUNDRED MILLION DOLLAR CLAIM SEEKING COMPENSATION FOR LOSSES AS A RESULT OF THE OIL WELL FIRES SET BY THE RETREATING IRAQIS BUT CORPORATE CLAIMS WON'T EVEN BE CONSIDERED BY THE COMMISSIONERS FOR A YEAR U. N. OFFICIALS SAY THAT IS BECAUSE THE U. N. IS GIVING PRIORITY TO SEVERAL CATEGORIES OF INDIVIDUALS INCLUDING WORKERS WHO HAD TO LEAVE KUWAIT AND IRAQ ABRUPTLY WHEN THE FIGHTING BROKE OUT AMBASSADOR CARLOS ALZAMORA EXECUTIVE SECRETARY OF THE COMMISSION SAYS THE FIRST BATCH OF ONE THOUSAND CLAIMS ON BEHALF OF PEOPLE BADLY INJURED OR KILLED IN THE FIGHTING WILL BE PAID OUT IN MAY THE FIVE MILLION DOLLARS IN PAYMENTS WILL COME FROM CONTRIBUTIONS ALREADY MADE BY VARIOUS U. N. MEMBERS THE NEXT BATCH OF CLAIMS WILL BE PAID TO DEPARTEES AND INDIVIDUALS WITH LOSSES UNDER ONE HUNDRED THOUSAND DOLLARS AMBASSADOR ALZAMORA SAID HE HOPES TO BE ABLE TO FUND PAYMENTS WITH FROZEN ASSETS FROM OIL REVENUE OWED TO IRAQ AS A RESULT OF DELIVERIES MADE IN THE MONTH BEFORE THE GULF WAR BEGAN BUT EVEN IF THE U. N. IS ABLE TO COLLECT THAT MONEY IT LIKELY ALL WILL BE DISTRIBUTED BY THE TIME THE COMMISSION STARTS PAYING CLAIMS TO CORPORATIONS THERE IS SOME GOOD NEWS FOR COMPANIES U. N. OFFICIALS ARE INTENT ON AVOIDING PROBLEMS FACED BY THE IRANIAN CLAIMS TRIBUNAL ESTABLISHED AFTER THE HOSTAGE CRISIS THAT IS STILL HEARING CLAIMS AFTER ALMOST THIRTEEN YEARS THE IRANIAN TRIBUNAL WAS HAMPERED IN PART BECAUSE IT WAS RUN AS AN ARBITRATION PANEL ANYONE COULD REQUEST A HEARING AND IRAN WAS ENTITLED TO RESPOND TO ALL ALLEGATIONS THE NEW COMPENSATION PANEL WILL ASSUME THAT IRAQ IS LIABLE FOR LOSSES AND WILL SIMPLY ASSESS DAMAGES HEARINGS CAN BE GRANTED AT THE DISCRETION OF THE COMMISSIONERS AND IRAQ WILL BE ALLOWED ONLY LIMITED OPPORTUNITIES TO RESPOND TO CLAIMS THOUGH SPECIFIC PROCEDURES FOR DEALING WITH CORPORATE CLAIMS HAVEN'T BEEN FULLY WORKED OUT THE COMPENSATION COMMISSION ALSO IS ATTEMPTING TO SETTLE INDIVIDUAL CLAIMS EXPEDITIOUSLY THE COMMISSION WHICH IS EXPECTED TO HAVE A SIXTEEN MILLION DOLLAR BUDGET IN NINETEEN NINETY FOUR IS USING COMPUTERIZED DATA BASES FOR EVALUATING SMALL CLAIMS MANY INDIVIDUALS WILL BE ENTITLED TO PRE ESTABLISHED AMOUNTS FOR EXAMPLE CERTAIN INDIVIDUAL DEPARTEES WILL GET FOUR THOUSAND DOLLARS SOME FAMILIES WILL GET EIGHT THOUSAND DOLLARS BUT DESPITE SUCH EFFORTS COMPANIES AND THEIR LAWYERS ARE TAKING A WAIT AND SEE ATTITUDE I HAVE NO REASON TO BE PESSIMISTIC BUT NONE TO BE OPTIMISTIC EITHER SAYS CHRISTOPHER THOMPSON GENERAL COUNSEL OF BROWN AND ROOT INCORPORATED IN HOUSTON THE COMPANY A UNIT OF HALLIBURTON COMPANY DALLAS HAS A ROUGHLY EIGHTEEN MILLION DOLLAR CLAIM STEMMING FROM AN OFFSHORE OIL PLATFORM PROJECT IN IRAQ BUT IT STILL HAS AN IRAN RELATED CLAIM PENDING A HEARING IS SET FOR OCTOBER IN THE HAGUE SOMETIMES THESE THINGS TAKE ON A LIFE OF THEIR OWN SAYS MR. THOMPSON MANY APPROVE OF FRIDAY'S DECISION BY A JURY THAT LORENA BOBBITT WAS NOT GUILTY OF DISMEMBERING HER HUSBAND THEY ARGUE THAT THE NEWS REPRESENTS A ROUGH KIND OF QUOTE TIT FOR TAT QUOTE JUSTICE YET THE BOBBITT JURY'S JUDGMENT THAT MRS. BOBBITT HAD ACTED WHILE TEMPORARILY INSANE IS A DEEPLY PROBLEMATIC ONE THE VERDICT REFLECTS A WIDENING CULTURAL DIVIDE THAT IS SLOWLY DELEGITIMIZING ANY TRADITIONAL SENSE OF JUSTICE IN THIS COUNTRY BY CHOOSING TO FREE LORENA BOBBITT THE MANASSAS JURY SET A PRECEDENT THAT WILL REDEFINE AMERICAN NOTIONS OF ACCURACY THINK FOR A MOMENT ABOUT THE BOBBITT CASE AND ABOUT ANOTHER CASE THAT HAS BEEN IN THE NEWS LATELY THE MENENDEZ BROTHERS' TRIAL FOR MURDERING THEIR PARENTS ASSUME THAT IN FACT WHAT THE DEFENSE IN EACH CASE HAS ARGUED IS TRUE THAT LORENA BOBBITT WAS INDEED THE PATHETIC VICTIM OF PHYSICAL ABUSE HUMILIATION AND SEXUAL TORMENT THAT THE MENENDEZ BROTHERS WERE ABUSED BY THEIR PARENTS AND SO DESERVE FREEDOM SUCH ABUSE IS HEINOUS BUT WITH REGARD TO THE QUESTION OF GUILT THE RESOUNDING ANSWER IN THESE CASES STILL HAS TO BE SO WHAT THIS IS NOT A CALLOUS ANSWER OF COURSE WE SYMPATHIZE OF COURSE OTHER LEGAL AND SOCIAL STEPS E. G. LEAVING HOME SUING SEEKING COURT INJUNCTIONS GETTING A DIVORCE ARE EMINENTLY IMPORTANT THAT'S THE POINT OF A CIVIL SOCIETY THERE ARE CIVILIZED PROCEDURES FOR DEALING WITH OUR PROBLEMS WITH EACH OTHER LORENA BOBBITT AND HER LAWYERS HOWEVER WENT A DIFFERENT PATH THREE PSYCHIATRISTS AND LEGAL EXPERTS TESTIFIED THAT HERS WAS NOT IRRESISTIBLE IMPULSE BUT AN IMPULSE THAT SHE DID NOT RESIST NEVERTHELESS MS. BOBBITT'S SUPPORTERS FOUND ENOUGH MEMBERS OF THE LEGAL AND SOCIAL WORK ESTABLISHMENT TO BUILD A CASE THE ASSOCIATED PRESS HAS REPORTED THAT A DOCTOR SUSAN FIESTER WHO INTERVIEWED MRS. BOBBITT FOR THIRTEEN HOURS DESCRIBED HER BEHAVIOR AT THE TIME OF THE VIOLENCE AS A BRIEF REACTIVE PSYCHOSIS THE JURY ENDED UP BUYING THAT ARGUMENT THE RESULT IS THAT THEY ALLOWED HER TO IMPINGE ON THE RIGHTS OF OTHERS MR. BOBBITT AND SANCTIONED PERSONAL VIGILANTISM THE BOBBITT VERDICT DERIDES ALL OTHER SPOUSES MEN AND WOMEN WHO HAVE BEEN ABUSED AS SHE WAS AND WHO NONETHELESS WENT THROUGH THE TEDIUM AND HELL OF COURT ORDERS INSTEAD OF RESORTING TO MALICIOUS WOUNDING IT ALSO SENDS AN ENGRAVED INVITATION TO BYPASS SUCH PROCEDURE IN FUTURE GIVEN THAT SIGNAL IMAGINE WHAT A NOT GUILTY VERDICT FOR THE MENENDEZ BROTHERS COULD MEAN THEIR JUDGE STANLEY WEISBERG HAS BEEN FACED WITH A CASE THAT HAS BEEN CONVERTED FROM A TRIAL OF CONFESSED MURDERERS THE SONS TO THE TRIAL OF THE VICTIMS MR. AND MRS. MENENDEZ AND THEIR PARENTING SKILLS WHEN DEFENSE ATTORNEY JILL LANSING ASKED THAT A PSYCHIATRIC EVALUATION OF THE SONS' MOTHER THAT SHOWED SHE WAS DIAGNOSED AS A BORDERLINE SCHIZOID BE ENTERED INTO EVIDENCE THE JUDGE SAID THAT QUOTE THE ISSUE HERE IS HOW SHE BEHAVED NOT HOW SHE WAS DIAGNOSED QUOTE NEVERTHELESS ACCORDING TO THE LOS ANGELES DAILY NEWS A UNIVERSITY OF WASHINGTON SOCIAL WORK PROFESSOR TOLD THE JURY THAT THE KIND OF ABUSE THE MENENDEZ BROTHERS ALLEGE TO HAVE ENDURED EXPLAINS ADULT BEHAVIOR AMERICAN JURIES ARE BEING TOLD THAT THE INDIVIDUAL IS NOT RESPONSIBLE FOR HIS OWN ACTIONS PART OF THE PROBLEM IS A GENUINE AMERICAN CONFUSION OF COMPASSION A PERSONAL VIRTUE WITH JUSTICE WE FORGET THAT JUSTICE IS CONSIDERED THE FOREMOST POLITICAL VIRTUE FOR A REASON IT PROVIDES THE GLUE OF SOCIETY A SENSE OF JUSTICE IS WHAT PRECLUDES PEOPLE TAKING MATTERS INTO THEIR OWN HANDS WHEN THAT SENSE OF JUSTICE BREAKS DOWN AS IT DID IN THE BOBBITT TRIAL YOU INVITE SOCIAL CHAOS WHAT THE BOBBITT TRIAL TELLS AMERICANS IS THAT WHAT MATTERS IS NO LONGER WHAT YOU DID BUT HOW OTHERS SAY YOU MADE THEM FEEL AS LORENA BOBBITT'S ATTORNEY SAID WE ARE NOT DISPUTING WHERE IT HAPPENED HOW IT HAPPENED WHO DID IT THE NORMAL QUESTIONS OF GUILT OR INNOCENCE INSTEAD THE CASE PRESENTED BECOMES FEEL SORRY FOR HER THE JERK DESERVED IT SAME WITH THE MENENDEZ BROTHERS ROTTEN PARENTS POOR ABUSED ORPHANS HOW DID AMERICANS COME TO CONFUSE JUSTICE AND COMPASSION AT THE ROOT OF THE PROBLEM IS WHAT HAS BEEN CALLED THE CULTURE WAR THE TRADITIONAL VIEW SEES PEOPLE AS NEITHER GOOD NOR BAD BUT CAPABLE OF BEING EITHER IT THEREFORE LOOKS TO EITHER GOD OR NATURAL LAW AS THE ULTIMATE ARBITER OF WHAT IS MORAL THIS VIEW WAS THE BASIS FOR EXAMPLE OF THE NUREMBURG TRIALS SINCE MAN MADE LAW SAID THE NAZIS HAD DONE NOTHING WRONG THE NEW SECULAR VIEW BY CONTRAST SEES PEOPLE AS BASICALLY GOOD IT CONCLUDES THAT WE EACH ARE OUR OWN ARBITERS OF RIGHT AND WRONG IN THIS VIEW EVIL IS UNDERSTOOD AS A BYPRODUCT OF SOME EXTERNAL FORCE POVERTY CHILD ABUSE GUNS OF WHICH MAN IS A VICTIM THIS IS A VIEW THAT EXCUSES VICTIMS LIKE LORENA BOBBITT IT IS ALSO A MINDSET THAT PUTS THE RIGHTS OF GROUPS OF VICTIMS BEFORE THOSE OF THE GENERAL INDIVIDUAL THUS A RADICAL FEMINIST ORGANIZATION REPORTEDLY HAD NO QUALMS ABOUT THREATENING TO DISMEMBER BOBBITT STYLE ONE HUNDRED MEN AT RANDOM IF LORENA'S JURY HANDED IN A GUILTY VERDICT THE BRIGHT SIDE OF THE BOBBITT RESULT IS THAT THERE ARE ONE HUNDRED MEN WHO CAN SLEEP SOUNDLY NIGHTS OR CAN THEY WE ARE CREATING A SOCIETY WHERE ANY INTERACTION BETWEEN INDIVIDUALS IS FAST BECOMING AN OPEN ENDED LIABILITY WE HAVE FOR TOO LONG TRAVELED ON A JUVENILE ROAD OF ABANDONING RESPONSIBILITY OF HOLDING EVERYONE AND EVERYTHING ACCOUNTABLE BUT OURSELVES WE HAVE FORGOTTEN THAT RESPONSIBILITY IS CENTRAL TO A FREE SOCIETY WITHOUT SUCH UNDERSTANDING A FREE SOCIETY CANNOT BE FREE FOR LONG MS. RICHARDSON IS A DIRECTOR OF THE COUNCIL ON CULTURE AND COMMUNITY AND A FELLOW AT THE PROGRESS AND FREEDOM FOUNDATION JOHN FELLOWS KNOWN AS QUOTE MISTER RADIO QUOTE IN THE STATE OF MAINE IS WITHOUT DOUBT ONE OF THE BEST RADIO TIME SALESMEN ANYWHERE I WORKED A DAY WITH HIM WHEN HE LED THE SALES TEAM AT WOKQ IN PORTSMOUTH N. H. WHICH IS RATED NUMBER ONE IN ITS MARKET AREA ON ONE CALL AT A LAWN AND GARDEN SUPPLY STORE HIS PRESENTATION TO THE OWNER WAS INTERRUPTED BY A CUSTOMER HE WAITED THREE MINUTES CALLED OUT SEE YA OVER HIS SHOULDER AND LEFT EXACTLY THIRTY MINUTES LATER AFTER A COLD CALL A MILE AWAY RESULTED IN A CONFIRMED FUTURE APPOINTMENT AT AN AUTOMOBILE DEALER WE WERE BACK AT THE LAWN AND GARDEN STORE TO CLOSE A MAJOR ADVERTISING SCHEDULE DESPITE THIS REMARKABLE DISPLAY OF SALES ACUMEN AT THE END OF THE DAY MR. FELLOWS APOLOGIZED IN EMBARRASSMENT WHEN WE HAD SCHEDULED THE FIELD SALES DAY HE TOLD ME HE DID EVERYTHING ON HIS LAPTOP COMPUTER AND EVEN THOUGH I DIDN'T THINK MUCH OF THE TECHNOLOGY HE THOUGHT THE WORLD OF IT HE HAD PLANNED TO SHOW ME HOW HIS COMPUTER WORKED ON OUR TRIP BUT ITS BATTERIES HAD DIED OVERNIGHT I COULDN'T HELP RECALLING THE ORBITER FOUR THOUSAND IT WAS INTRODUCED AS THE LATEST IN SHAVING TECHNOLOGY BY GILLETTE IN THE EARLY NINETEEN SEVENTIES ELECTRICAL APPLIANCES WERE TAKING ADVANTAGE OF NEW ADVANCES IN BATTERIES AND THE ELECTRIC CARVING KNIFE LED ALL SALES GILLETTE'S ORBITER FOUR THOUSAND WAS A BATTERY OPERATED TECHMATIC BAND RAZOR THAT SORT OF VIBRATED AFTER A HOT PRODUCT LAUNCH IT WAS LATER QUIETLY RECALLED WHEN IT WAS DISCOVERED THAT IT SHAVED JUST AS WELL WHEN THE BATTERIES RAN DOWN IT BECAME KNOWN IN THE TRADE AS THE ELECTRIC FORK WOULD THAT THE LATEST IN SALES FORCE AUTOMATION WERE AS BENIGN YEARS AGO MOST ENLIGHTENED SALES MANAGERS DID AWAY WITH CALL REPORTS AS A WASTE OF TIME WHAT WAS ACCOMPLISHED WAS CRITICAL NOT A RECORD OF HOW IT WAS DONE SALES MANAGERS WERE REQUIRED TO TRAVEL WITH THEIR TOP PRODUCERS TO KEEP THEIR EXPERIENCED EYE ON THE MARKETPLACE AND TO IMPROVE THE TECHNIQUE OF THEIR FIELD SALES PROFESSIONALS WITH THOUSANDS OF SOFTWARE PROGRAMS NOW AVAILABLE SALES FORCE AFTER SALES FORCE IS BEING EQUIPPED IN THE NAME OF ELECTRONIC PROGRESS WITH AUTOMATION SYSTEMS ALL OF WHICH INCLUDE DETAILED ELECTRONIC CALL REPORTING FEATURES THESE PROGRAMS PUMP OUT SALES MANAGEMENT REPORTS INDICATING IN MULTICOLORED BAR CHARTS AND PIE GRAPHS OR WITH LONG COLUMNS OF FIGURES EXACTLY WHAT IS HAPPENING IN THE FIELD NO NEED TO BE THERE IT'S ALL IN THE SYSTEM A FIELD DISTRICT MANAGER FOR DATA GENERAL CORPORATION TOLD ME HE HAD NO NEED TO GO INTO THE FIELD HE MONITORED HIS PEOPLE ON THE SYSTEM HIS JOB AS HE SAW IT WAS TO BE SURE ORDERS WERE CORRECTLY PROCESSED TRADITIONALLY COMPUTER SALESPEOPLE MAKE FEWER SALES CALLS THAN IN ANY OTHER INDUSTRY IS IT ANY WONDER THEY LOSE CONTROL OF THEIR MARKETS AND CUSTOMERS WITH GREATER SPEED THAN ANY OTHER INDUSTRY THERE IS NOT A SINGLE FUNCTION ON ANY SALES AUTOMATION SYSTEM THAT CANNOT BE DONE MANUALLY WITH EQUAL EFFICIENCY WITH THE EXCEPTION OF SUMMARY ACTIVITY REPORTS GEORGE GILDER WAS ONCE QUOTED AS SAYING THAT ONE PAIR OF HUMAN EYES PROCESSED MORE VISUAL DATA IN ONE DAY THAN ALL THE WORLD'S COMPUTERS COMBINED WHAT A SHAME IF THOSE EYES ARE GLUED TO THE SCREEN OF A SALES FORCE AUTOMATION SYSTEM SALES FORCE AUTOMATION FUNCTIONS PRIMARILY TO MARKET THE HARDWARE AND SOFTWARE IT WAS DESIGNED TO REQUIRE TOO OFTEN IT IS USED TO JUSTIFY THE DERELICTION OF DUTY OF DESK HUGGING SALES MANAGERS WHO DON'T WANT TO DO THE HARD JOB OF GETTING ON PLANES TO FIND OUT WHAT IS REALLY GOING ON WARNER LAMBERT FOR EXAMPLE ACTUALLY REQUIRES ITS FIELD MERCHANDISERS TO RECORD IN ITS DATABASE THE RESULTS OF EVERY CALL ON EVERY DRUGSTORE AND SUPERMARKET MADE EVERY DAY TO REPLACE DAMAGED GOODS AND DRESS DISPLAYS AND TO TALK TO STORE PERSONNEL ABOUT GOOD MERCHANDISING PRACTICES THIS IS BECOMING STANDARD COMPUTER PRACTICE IN THE INDUSTRY WHY TURNING FIELD PEOPLE INTO DATA ENTRY CLERKS ONLY SERVES THE PURPOSE OF ALLOWING MANAGERS TO POLICE WHERE THEIR PEOPLE SAY THEY HAVE BEEN OFFICE MACHINES BELONG IN AN OFFICE NOT ON THE FRONT SEAT OR LAP OF SALES PROFESSIONALS DO THE ADMINISTRATION FOR YOUR SALESPEOPLE DON'T OFFLOAD IT ON THEM DURING THE GROWTH AGE OF ELECTRONICS SPANNING THE PAST FIFTEEN YEARS ACROSS ALL INDUSTRIES IN ALL MARKETS IMAGINABLE I HAVE NEVER SEEN EVEN ONE TOP SALES PROFESSIONAL DRAG ONE OF THESE ELECTRONIC MARVELS IN ON A SALES CALL THEY ALL UNDERSTAND INSTINCTIVELY THAT TECHNOLOGY DOES NOT BELONG IN THE EQUATION THEY KNOW WHY PEOPLE BUY THEY KEEP TRACK OF FOUR HUNDRED OR FIVE HUNDRED NAMES IN THEIR HEADS WITHOUT DIFFICULTY AND NO DATABASE EXISTS THAT CAN OR SHOULD CATALOG WHAT THEY KNOW ABOUT HOW AND WHY THOSE PEOPLE BUY ARE THERE EXCEPTIONS TO THIS RULE YES COMPUTERS DEFINITELY BELONG IN SALES IN A BIG WAY FOR EXAMPLE RICK KELLY OF BRISTOL MYERS DOES MILLIONS IN SALES WITH JUST THREE CUSTOMERS HE SPENDS THREE DAYS A MONTH IN CLEARWATER FLORIDA HARRISBURG PENNSYLVANIA AND PROVIDENCE R. I. HE KNOWS ALMOST AS MUCH ABOUT THE STORE TO STORE OPERATIONS OF ECKERD DRUG RITE AID AND C. V. S. AS THEY DO THEMSELVES HE KNOWS BY BEING ABLE TO COMPUTER MODEL DISTRIBUTION AND PROMOTIONAL PLANS WITH HIS BUYERS THEY SHARE DATA TO INCREASE RESULTS RICK IS A NATIONAL ACCOUNTS MANAGER AND USES HIS COMPUTER DIFFERENTLY FROM THE WAY ANY OF THE SALES FORCE AUTOMATION SYSTEMS ON THE MARKET NOW OPERATE KNOWING WHAT A WEEKEND COUPON DROP IN A SUNDAY SUPPLEMENT WILL DO IN AREA OUTLETS AT WHAT PRICE POINT AND IN WHAT VOLUME BY PACKAGE SIZE IS WHAT HE AND HIS COMPUTER WORK ON HE GETS ELECTRONIC MAIL AND HAS IN DEPTH MARKET INFORMATION BUT HE DOESN'T HAVE TO FOLLOW UP LEADS OR UPDATE THE NAMES OF BUYERS WITH ONLY THREE CUSTOMERS HIS RESULTS ARE TABULATED QUARTERLY NO NEED TO CHECK NUMBERS OF CALLS PER DAY TAKE A LONG HARD LOOK AT HOW YOU EMPLOY COMPUTERS IN FIELD SALES DO YOUR BEST SALESPEOPLE WORK JUST AS WELL WITH THE BATTERIES DISCONNECTED THAT OUGHT TO TELL YOU SOMETHING ABOUT SALES FORCE AUTOMATION AND ITS PLACE IN THE HALL OF SHAME WITH THE OVER PROMISED AND UNDER DELIVERED COMPUTERIZED PREDECESSORS THAT HAVE FALLEN BY THE WAYSIDE ALONG THE ELECTRONIC HIGHWAY DO YOU REQUIRE YOUR SALES PROFESSIONALS TO USE AN ELECTRONIC FORK FIREARMS HAVE ALMOST REPLACED MOTOR VEHICLE CRASHES AS THE LEADING CAUSE OF INJURY RELATED DEATH IN THE U. S. NEW FEDERAL STUDIES SAY FOR DECADES MOTOR VEHICLE ACCIDENTS HAVE CLAIMED MORE LIVES THROUGH INJURY THAN ANY OTHER CAUSE BUT FROM NINETEEN EIGHTY FIVE THROUGH NINETEEN NINETY ONE THE DEATH RATE FROM SUCH ACCIDENTS FELL TEN PERCENT WHILE THE DEATH RATE LINKED TO FIREARMS JUMPED FOURTEEN PERCENT ACCORDING TO REPORTS ISSUED BY THE NATIONAL CENTER FOR HEALTH STATISTICS AND THE CENTERS FOR DISEASE CONTROL AND PREVENTION THE TRENDS WHICH ACCELERATED BETWEEN NINETEEN EIGHTY EIGHT AND NINETEEN NINETY ONE MEAN THAT FIREARM INJURIES COULD BECOME THE NATION'S LEADING CAUSE OF INJURY DEATH WITHIN THE NEXT TWO TO THREE YEARS IN NINETEEN NINETY ONE ALONE ACCORDING TO THE REPORTS SIX STATES CALIFORNIA NEW YORK TEXAS LOUISIANA NEVADA AND VIRGINIA AS WELL AS THE DISTRICT OF COLUMBIA HAD MORE FIREARM DEATHS THAN MOTOR VEHICLE DEATHS AND ALREADY FIREARMS CAUSE MORE DEATHS AMONG PEOPLE AGED TWENTY FIVE TO THIRTY FOUR THAN ANY OTHER INJURY PREVIOUS STUDIES HAVE NOTED THE EXPLODING NUMBER OF GUN RELATED DEATHS IN SELECTED GROUPS PARTICULARLY AMONG YOUNG BLACK MALES BUT THE NEW REPORTS ARE THE FIRST TO HIGHLIGHT THE BREADTH OF THE PROBLEM QUOTE WE'VE JUST BEGUN TO FOCUS ON FIREARM DEATHS AND VIOLENCE AS A HEALTH ISSUE QUOTE SAID JIM MERCY ACTING DIRECTOR OF THE DIVISION OF VIOLENCE PREVENTION AT THE C. D. C. WHILE LEGISLATORS AND HEALTH OFFICIALS HAVE MADE PROGRESS IN REDUCING THE FATALITY RATE FROM MOTOR VEHICLE ACCIDENTS HE SAID THERE'S BEEN LITTLE IF ANY SYSTEMATIC APPROACH TO PREVENTING FIREARM INJURIES THE NEW STATISTICS WILL LIKELY ADD FUEL TO THE DEBATE ON HOW TO STEM VIOLENCE IN A RECENT WALL STREET JOURNAL SLASH N. B. C. POLL NINETY THREE PERCENT OF THE RESPONDENTS SAID DEALING WITH CRIME IS AN ABSOLUTE PRIORITY FOR ELECTED OFFICIALS JUST SIXTY SEVEN PERCENT CITED HEALTH CARE INDEED PRESIDENT CLINTON IN HIS STATE OF THE UNION ADDRESS TUESDAY EVENING PROMISED TO GIVE THE ISSUE OF VIOLENCE NEAR EQUAL BILLING WITH HIS TOP PRIORITY HEALTH CARE REFORM THE REPORTS ISSUED YESTERDAY FOUND THAT IN NINETEEN NINETY ONE THE MOST RECENT YEAR FOR WHICH DATA ARE AVAILABLE FORTY THREE THOUSAND FIVE HUNDRED THIRTY SIX PEOPLE DIED FROM INJURIES IN MOTOR VEHICLE ACCIDENTS WHILE THIRTY EIGHT THOUSAND THREE HUNDRED SEVENTEEN PEOPLE DIED FROM INJURIES TIED TO FIREARMS OF THE LATTER FORTY SEVEN PERCENT WERE HOMICIDES FORTY EIGHT PERCENT WERE SUICIDES AND FOUR PERCENT WERE CATEGORIZED AS UNINTENTIONAL DEATHS THE NEXT LEADING CAUSES OF DEATH BY INJURY WERE FALLS POISONINGS DROWNINGS AND FIRES AND BURNS THE GREATEST INCREASES IN FIREARM DEATHS ACCORDING TO THE REPORTS OCCURRED AMONG ADOLESCENTS AND YOUNG ADULTS FROM NINETEEN EIGHTY EIGHT TO NINETEEN NINETY ONE THE MORTALITY RATE FROM FIREARM INJURIES JUMPED FORTY PERCENT AMONG INDIVIDUALS AGED FIFTEEN TO TWENTY FOUR AMONG AMERICANS AGED TWENTY FIVE TO THIRTY FOUR THE RATE INCREASED EIGHT PERCENT GIVEN THE DEEP AND COMPLEX ROOTS OF VIOLENCE SAID DOCTOR MERCY AT THE C. D. C. ANY EFFORTS TO REDUCE THE NUMBER OF DEATHS LINKED TO FIREARMS MAY PROVE EQUALLY INVOLVED BUT THE C. D. C. CALLED YESTERDAY FOR A MASSIVE EDUCATION PROGRAM AMONG OTHER STEPS TO HELP PREVENT SUCH INJURIES OTHER RECENT STUDIES HAVE SHOWN THAT THE SIMPLE PRESENCE OF A GUN IN A HOME IS LINKED TO AN APPROXIMATELY FIVEFOLD INCREASE IN THE RISK OF SUICIDE AND A THREEFOLD INCREASE IN THE RISK OF HOMICIDE FOR HOUSEHOLD MEMBERS IF THE WHITE HOUSE WANTS TO EMPHASIZE WORKER TRAINING AS PART OF ITS NEW QUOTE INVESTMENT QUOTE BUDGET IT OUGHT TO GRAPPLE WITH A POLITICAL PROBLEM THAT HAS NOTHING TO DO WITH REVENUE TRADE UNION OPPOSITION BUT THIS IT APPARENTLY WILL NOT DO IN SEVERAL STATES JOBS AWAIT THOSE TAUGHT TO BE ELECTRICIANS HEATING AND AIR CONDITIONING INSTALLERS WELDERS AND PLUMBERS THAT'S THE EARLY EVIDENCE FROM PARALLEL APPRENTICESHIP PROGRAMS OFFERED OUTSIDE THE UNIONS AND OVER THEIR OBJECTIONS IN PLACES WHERE ORGANIZED LABOR PREVIOUSLY CONTROLLED ENTRY TO FORMAL CONSTRUCTION TRAINING THESE LOCATIONS INCLUDE CALIFORNIA AND WASHINGTON AS WELL AS MAJOR MIDWESTERN AND EASTERN STATES HOW MUCH OF A DIFFERENCE WOULD EXPANSION OF THESE EFFORTS MAKE A BIG ONE SAYS HERBERT NORTHRUP AN EMERITUS PROFESSOR AT THE WHARTON SCHOOL HE ESTIMATES THAT IF THESE TRADES COULD TRULY BE OPENED UP NOT JUST TO FULL APPRENTICES BUT TO HELPERS CURRENTLY STYMIED BY UNION RULES FIVE HUNDRED THOUSAND TO SEVEN HUNDRED FIFTY THOUSAND PEOPLE MANY OF THEM CURRENTLY UNEMPLOYABLE ABOVE THE MINIMUM WAGE COULD BE ADDED TO THE THREE POINT EIGHT MILLION NOW IN CONSTRUCTION CRAFTS DAVID TURNER A FEDERAL TRAINING OFFICIAL IN SAN FRANCISCO IS MORE GUARDED BUT SAYS NONUNION CONTRACTORS COULD BE ABLE TO DOUBLE THE APPROXIMATELY ONE HUNDRED EIGHTY THOUSAND APPRENTICES IN THE INDUSTRY NOW THE ISSUE IS HOT IN SOME OF THE TWENTY SEVEN STATES THAT REGULATE APPRENTICES THERE THE UNIONIZED SECTOR EVEN THOUGH ITS CONSTRUCTION MARKET SHARE HAS DWINDLED TO PERHAPS TWENTY FIVE PERCENT HAS DOMINATED THE LICENSING PROCESS HOWEVER A SERIES OF COURT INTERPRETATIONS OF THE FEDERAL LAW KNOWN AS ERISA PRIMARILY CONCERNED WITH PENSIONS ARE FORCING THOSE STATES TO OPEN UP BUT JUST AS RESULTS FROM THE NEW PROGRAMS BEGIN TO SHOW WITH PERHAPS ONE THOUSAND ALREADY TAKING PART IN CALIFORNIA A POLITICAL REACTION HAS SET IN REPRESENTATIVE HOWARD BERMAN A LOS ANGELES DEMOCRAT AND ONETIME LABOR LAWYER HAS GUIDED A MEASURE THROUGH THE HOUSE TO RETURN RESTRICTIVE POWERS TO THE STATES SENATOR ARLEN SPECTER R. PENNSYLVANIA WHOM THE A. F. L. C. I. O. GRANTED A THIRD TERM HAS PICKED UP THE LEGISLATION IN THAT CHAMBER EVEN WITHOUT THE BERMAN BILL IT ISN'T EASY TO GET A VIABLE OPEN SHOP APPRENTICESHIP PROGRAM TAKE THE CASE OF LEONARD EDH OWNER OF WALTHER ELECTRIC IN CERES CALIFORNIA NEAR MODESTO A SWEDISH IMMIGRANT RAISED IN A WORLD OF WIDESPREAD CRAFT TRAINING HE'S CREATED A MODERN TEACHING FACILITY AT HIS COMPANY OFFICES MORE THAN TWENTY FIVE HIGH SCHOOL GRADUATE HIRES ARE LEARNING THE TRADE THERE BUT MR. EDH CANNOT BE SURE A DECADE INTO THE QUEST WHETHER HIS PROGRAM WILL BE ALLOWED TO YIELD MANY JOURNEYMEN ELECTRICIANS HE'S BEEN THROUGH YEARS OF UNION RESISTANCE IN THE BUREAUCRACY AND THE COURTS AND HIS FOES ARE STILL TRYING TO CATCH HIM IN SOME TECHNICAL VIOLATION OF PAYROLL PROCEDURES THAT COULD VOID HIS EFFORTS UNIONS SHROUD ACCESS TO THEIR OWN APPRENTICESHIPS MR. EDH COMPLAINS AT ONE TIME RACIAL DISCRIMINATION MOTIVATED THEIR ACTIONS BUT INCREASINGLY THEY ARE DRIVEN BY THE DESIRE TO PROTECT THE ARTIFICIALLY HIGH WAGES OF EXISTING MEMBERS BECAUSE THE BURDEN OF SETTING UP APPRENTICE TRAINING IS SO GREAT OTHER NONUNION FIRMS ARE RELYING ON PROGRAMS RUN BY THE ASSOCIATED BUILDERS AND CONTRACTORS A. B. C. THEIR TRADE GROUP BUT IN THE LOS ANGELES METROPOLITAN AREA THESE EFFORTS TOO HAVE TAKEN YEARS TO GAIN APPROVAL AND SOME STILL ARE BEING STALLED A NONUNION ROOFING APPRENTICESHIP IN NORTHERN CALIFORNIA GOT GOING IN NINETEEN NINETY ONE AFTER A FIVE YEAR DELAY AND HAS ABOUT TWO HUNDRED PARTICIPANTS IN THAT CASE AS IN CARPENTRY THE CORE ISSUE IS NOT SO MUCH RESTRICTED ENTRY TO THE FIELD AS SIMPLY AN INTENSE DESIRE BY UNION SHOPS TO DEFEND THEIR MARKET SHARE THE BACKDROP OF THIS WHOLE FIGHT IS THE DRAMATIC DECLINE OF THE UNIONIZED CONSTRUCTION INDUSTRY ALTHOUGH NONUNION CONTRACTORS CAN GET IDLE HANDS TO SLIP OVER FROM THE OTHER SIDE OR CAN RELY ON LABORERS TO DO SOME OF THE LESS SKILLED CRAFT WORK THEY OFTEN HUNGER FOR SANCTIONED APPRENTICES THE REASON IS PUBLIC WORKS IN A SLACK CONSTRUCTION PERIOD PROJECTS INVOLVING THE GOVERNMENT MAY ACCOUNT FOR A THIRD OF ALL BUSINESS UNDER THE FEDERAL DAVIS BACON ACT AND SIMILAR STATE STATUTES A PREVAILING UNION WAGE MUST BE PAID ON THESE JOBS BUT APPRENTICES MAY BE USED FOR AS LITTLE AS HALF THE JOURNEYMAN PAY BECAUSE THESE APPRENTICES MUST BE OFFICIALLY SANCTIONED NONUNION CONTRACTORS IN SOME STATES CAN'T COMPETE FOR SOME PUBLIC WORKS BECAUSE THEY LACK A SUPPLY OF THIS CUT RATE PERSONNEL FOR ELECTRICIANS IN CALIFORNIA THE MARKET RATE FOR PRIVATE JOBS MAY BE FORTY PERCENT BELOW THE APPROXIMATELY THIRTY FIVE DOLLAR AN HOUR JOURNEYMAN SCALE WITH HELPERS WHO ARE ABLE TO DO MANY OF THE CONDUIT AND SIMPLE OUTLET TASKS WHEN ALLOWED SAVINGS MAY BE EVEN GREATER THE RESULT IS MORE WORKERS ON MORE JOBS BUT FOR LESS MONEY THE UNIONS DON'T BUY THAT TRADEOFF SO THEY TRY TO PROTECT THEIR SCALE AND BY LIMITING SUPPLY FROM NONUNION TRAINING PROGRAMS MINIMIZE THE OUT OF WORK TIME FOR THEIR MEMBERS THE PUBLIC POLICY CHOICE THEN MIGHT BE REFLECTED IN THIS ROUGH EXAMPLE ONE HUNDRED CRAFTSMEN AT TWENTY DOLLARS TO THIRTY FIVE DOLLARS AN HOUR VERSUS TWO HUNDRED AT TEN DOLLARS TO TWENTY FIVE DOLLARS AN HOUR IF THE SKILL LEVELS ARE ADEQUATE IN BOTH CASES A STATE AND NATION WITH A BLUE COLLAR EMPLOYMENT PROBLEM SHOULD PROBABLY CHOOSE THE LATTER IT WOULD ALSO ENJOY LOWER CONSTRUCTION AND REPAIR COSTS AND ALL THE SOCIAL BENEFITS THAT FOLLOW YET THIS HAS NOT BEEN THE THRUST IN REGULATED STATES EVEN ONES SUCH AS CALIFORNIA WITH A REPUBLICAN GOVERNOR HOLDING MOST OF THE LEVERS OF POWER THE A. B. C. TRADE GROUP DESPITE ITS NOW OVERWHELMING EDGE WITHIN THE BUILDING INDUSTRY HAS BEEN BARELY ABLE TO BUDGE SACRAMENTO IN SOME OTHER MAJOR STATES ORGANIZED LABOR IS EVEN MORE ENTRENCHED ITS CONTROL IN THE NEW YORK METROPOLITAN AREA IS SO TIGHT THAT DURING THE GREAT NINETEEN EIGHTIES HIGH RISE BOOM UNION WORK CREWS WERE BROUGHT FROM DISTANT CITIES WHILE LOCALS WANTED FOR JOBS UNFORTUNATELY BECAUSE TRAINING SUCH AS THE CLINTON ADMINISTRATION'S PLANNED QUOTE SCHOOL TO WORK QUOTE PROGRAM ENTAILS MAJOR STATE PARTICIPATION THE POLITICAL GRIP EXERCISED BY THE CONSTRUCTION TRADE UNIONS IS LIKELY TO LIMIT THE ABILITY TO PUT PEOPLE TO WORK IN SEVERAL KEY VOCATIONS YET THE WHITE HOUSE BACKS THE BERMAN BILL EXPANDED JOB OPPORTUNITIES IT APPEARS AREN'T WORTH RISKING ANOTHER TIFF WITH THE BIG LABOR BASE SAN FRANCISCO ATTORNEY MARK THIERMAN WHO HAS LITIGATED ON BEHALF OF NONUNION LABOR SAYS HE BELIEVES THAT EVEN IF BERMAN PASSES GROUNDS CAN BE FOUND TO SECURE THE OPENING OF NEW APPRENTICESHIP PROGRAMS IN THE BATTLEGROUND STATES BUT OTHERS DISAGREE TECHNOLOGY SHOULD SLOWLY DIMINISH THE IMPORTANCE OF THE CONSTRUCTION TRADES AS MORE STRUCTURES ARE COMPOSED OF MODULAR ARRANGEMENTS STRAIGHT FROM THE FACTORY BUT FOR SOME TIME TO COME THIS LINE OF WORK CAN BE THE TICKET TO A DECENT LIVING FOR MANY MORE IF ONLY ALL THE STATES CAN BE ENJOINED TO MAKE IT POSSIBLE ATTENTION U. S. BUSINESSMEN HAVING TROUBLE GUARDING YOUR SECRETS LOSING OVERSEAS CONTRACTS TO FOREIGN RIVALS WHO PAY BIG BRIBES THE C. I. A. WANTS TO LEND YOU A HELPING HAND THERE'S A BIG JOB TO BE DONE ACCORDING TO JAMES WOOLSEY WHO BECAME DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY LAST YEAR AND THE C. I. A. WANTS TO DO IT BECAUSE AMERICANS WERE LESS CONCERNED ABOUT EXPORTS WHILE BUSILY WAGING THE COLD WAR QUOTE THE U. S. OFTEN HASN'T BEEN PARTICULARLY STRICT ABOUT SUCH INDUSTRIAL ESPIONAGE AND BRIBERY TARGETED AGAINST AMERICAN COMPANIES IN THE PAST QUOTE MR. WOOLSEY TOLD A BUSINESS GROUP RECENTLY WELL NO MORE MR. NICE GUY MICHAEL HERSHMAN OF THE FAIRFAX GROUP A PRIVATE INTELLIGENCE COMPANY WITH CORPORATE CLIENTS SAYS HE WELCOMES THIS SIGNIFICANT CHANGE OF DIRECTION FOR THE C. I. A WE HAVE TO START BRINGING OURSELVES ONTO AN EQUAL FOOTING WITH THE COMPETITION THE U. S. SPIES MAY BE LOOKING OUT FOR THEMSELVES AS WELL THE COLLAPSE OF THE SOVIET UNION MEANS THE C. I. A. LIKE THE DEFENSE DEPARTMENT AND OTHERS CONCERNED WITH NATIONAL SECURITY MUST SLIM DOWN THIS INTENSIFIED INTEREST IN BUSINESS MATTERS MAY BE PARTLY AN EFFORT TO KEEP THE SLIMMING UNDER CONTROL THAT COULD BE A HARD SELL THERE IS NO DESIRE ON THIS COMMITTEE'S PART TO HELP THEM CAST ABOUT FOR NEW WORK WHEN THE NEED DOESN'T DEMONSTRABLY EXIST WARNS MICHAEL SHEEHY CHIEF COUNSEL FOR THE HOUSE PERMANENT SELECT COMMITTEE ON INTELLIGENCE AN OVERSIGHT BODY BUT THE C. I. A. CLAIMS THE NEED IS THERE THOUGH AGENCY OFFICIALS AND SKEPTICS AGREE THERE'S A DANGER OF GOING TOO FAR THAT'S WHY THE C. I. A. INSISTS IT WON'T TRY AND OTHERS SAY THE GOVERNMENT WOULD NEVER PERMIT SPYING ON FOREIGN COMPANIES OR STEALING PROPRIETARY SECRETS FOR THE DIRECT BENEFIT OF AMERICAN BUSINESS THE LEGAL AND FOREIGN POLICY RAMIFICATIONS OF THIS WOULD BE COUNTERPRODUCTIVE AND DAMAGING IN A NUMBER OF WAYS MR. WOOLSEY SAYS THE C. I. A. HAS LONG WATCHED OTHER COUNTRIES' SPY AGENCIES AND TRIED TO KEEP TRACK OF MEDDLING THAT HURTS U. S. COMPANIES BUT MR. WOOLSEY IS PUSHING DEEPER INTO COMMERCIAL MATTERS QUOTE WE WILL DO SO WITH SPECIAL ENTHUSIASM AND RELISH QUOTE THOUGH THE TOPIC REMAINS CONTROVERSIAL BOTH WITHIN THE C. I. A. AND THE ADMINISTRATION AS A WHOLE SOME EXPERTS CONTEND THAT THESE AREN'T PROPER DUTIES FOR THE NATION'S CHIEF INTELLIGENCE BUREAU WHAT IS C. I. A. SUPPOSED TO STAND FOR THE CENTRAL INTELLIGENCE ANTI BRIBERY AGENCY ASKS A SKEPTICAL FORMER U. S. OFFICIAL FAMILIAR WITH ITS OPERATIONS BUT AGENCY OFFICIALS SAY THE BUSINESS ROLE CAN BE TWOFOLD ONE TASK IS TO MONITOR MORE CLOSELY THOSE FOREIGN SPY AGENCIES THAT TRY TO STEAL AMERICAN BUSINESS OR TECHNICAL SECRETS FRANCE IS WIDELY CONSIDERED THE MOST BLATANT TRANSGRESSOR BUT SPIES FROM BRITAIN ISRAEL CHINA JAPAN AND SOUTH KOREA ALLEGEDLY ALSO ARE MAJOR PLAYERS IN THIS GAME FOREIGN INTELLIGENCE AGENCIES GENERALLY WORK CLOSELY WITH THEIR BUSINESSMEN SAYS A SENIOR C. I. A. OFFICIAL THE SECOND TASK IS TO FIGHT BRIBERY AND OTHER UNFAIR PRACTICES STRICT U. S. LAWS INHIBIT AMERICAN COMPANIES ON THE PAYOFF FRONT IT WOULD PUT MORE OFFICERS CAREER EMPLOYEES AGENTS OUTSIDE RECRUITS AND OTHER ASSETS INTO THE FRAY TO GATHER DATA ABOUT PRACTICES THAT HARM U. S. BUSINESS INTERESTS ANY USEFUL INFORMATION WOULD BE SENT ELSEWHERE FOR ACTION TO THE STATE OR COMMERCE DEPARTMENTS FOR EXAMPLE OR THE LOCAL U. S. AMBASSADOR THE AGENCY HAS NO PLANS TO ACT DIRECTLY FOR AMERICAN BUSINESS JUST HOW MUCH BIG TIME BRIBERY TAKES PLACE IS UNCLEAR ONE SECRET U. S. TALLY FINDS FEWER THAN ONE HUNDRED CASES IN RECENT YEARS YET STRANGE THINGS DO OCCUR A CURRENT EXAMPLE AN AMERICAN COMPANY IN SOUTHEAST ASIA THOUGHT IT HAD WON A MAJOR GOVERNMENT CONTRACT ONLY TO SEE THE DEADLINE EXTENDED AT THE LAST MINUTE THEN AN OBSCURE GROUP ENTERED AN ALMOST IDENTICAL COMPLEX BID AT A SLIGHTLY LOWER PRICE THE U. S. AMBASSADOR HAS PROTESTED HEATEDLY TO HIS HOST GOVERNMENT ON GROUNDS THAT SECRET TERMS WERE STOLEN FOR THE RIVAL'S BENEFIT THE OUTCOME IS STILL PENDING BUSINESSES AREN'T UNIFORMLY ENTHUSIASTIC ABOUT GETTING HELP AND GUIDANCE FROM THE C. I. A. ONE AGENCY OFFICIAL CONCEDES THERE'S HISTORICAL ANIMOSITY BETWEEN GOVERNMENT AND BUSINESS AND MANY EXECUTIVES DON'T WANT TO BE TAINTED BY ASSOCIATION WITH SPIES PERHAPS THAT'S WHY AMERICAN TELEPHONE AND TELEGRAPH COMPANY SAYS WE DON'T NEED THE C. I. A.'S HELP IN THESE KIND OF MATTERS THANK YOU VERY MUCH OSCAR HERRERA ADMITS HE IS A CROOK EAGER TO COLLECT LUCRATIVE PREMIUMS ON LIFE INSURANCE POLICIES THE FORMER INSURANCE AGENT LIED TO CUSTOMERS AND FORGED SIGNATURES HE EVEN CHEATED HIS OWN UNCLE OUT OF TWENTY SEVEN THOUSAND DOLLARS BUT WHEN AN IRATE POLICYHOLDER FINALLY HAULED MR. HERRERA BEFORE A JURY LAST YEAR THE JURORS LET HIM OFF SCOT FREE INSTEAD THEY BLAMED HIS EMPLOYER NEW YORK LIFE INSURANCE COMPANY FOR HIS MISDEEDS AND AWARDED THE POLICYHOLDER A WIDOW WHO LOST SIXTY FIVE THOUSAND DOLLARS AN ASTOUNDING TWENTY ONE MILLION DOLLARS NEW YORK LIFE ULTIMATELY SETTLED THE CIVIL SUIT FOR AN UNDISCLOSED SUM AND PROSECUTORS HAVE BROUGHT NO CRIMINAL CHARGES STILL THE HERRERA CASE IS SENDING SHOCK WAVES THROUGH THE LIFE INSURANCE INDUSTRY FOR YEARS IT HAS BLAMED ABUSES SUCH AS THOSE ADMITTED BY MR. HERRERA ON INDIVIDUAL QUOTE ROGUE QUOTE AGENTS NOW AFTER YEARS OF FRAUD AND DECEIT BY SOME AGENTS MANY PEOPLE FIND THAT EXCUSE WEARING THIN COURTS GOVERNMENT OFFICIALS AND THE PUBLIC ARE BEGINNING TO CONCLUDE THAT THE INDUSTRY ITSELF IS A ROGUE THAT MUST BE BROUGHT TO HEEL IT'S NOT PLAUSIBLE FOR THE COMPANIES TO SAY IT'S JUST A BAD APPLE THEY CREATE A CLIMATE FOR THIS SORT OF THING SAYS JOSEPH BELTH EDITOR OF THE INSURANCE FORUM NEWSLETTER HE CONTENDS THAT WHAT GOES ON IN THE LIFE INSURANCE BUSINESS IS A NATIONAL SCANDAL CERTAINLY EVIDENCE OF CONTINUING ABUSES IS MOUNTING FLORIDA STATE REGULATORS FOR EXAMPLE ARE BATTLING METROPOLITAN LIFE INSURANCE COMPANY OVER THE PRACTICE OF MARKETING LIFE INSURANCE AS A RETIREMENT VEHICLE AND FAILING TO MAKE CLEAR TO CUSTOMERS THEY ARE BUYING INSURANCE UNDER FLORIDA LAW THAT PRACTICE IS DEEMED FRAUD AND CARRIES STIFF PENALTIES MET LIFE SAYS AS MANY AS SIXTY THOUSAND PEOPLE NATIONWIDE MAY HAVE BEEN MISLED BY ITS AGENTS AND HAS PROMISED TO PAY UP TO FORTY MILLION DOLLARS IN COMPENSATION BUT FLORIDA'S INSURANCE COMMISSIONER TOM GALLAGHER IS DETERMINED THAT MET LIFE WON'T GET AWAY WITH BLAMING AN AGENT WE HOLD COMPANIES RESPONSIBLE FOR THEIR AGENTS MR. GALLAGHER VOWS SINCE FLORIDA BEGAN ITS INVESTIGATION IN FACT AT LEAST THREE MORE COMPANIES NEW YORK LIFE SEARS ROEBUCK AND COMPANY'S ALLSTATE CORPORATION AND PRUDENTIAL INSURANCE COMPANY OF AMERICA HAVE ADMITTED THAT ONE OR MORE OF THEIR AGENTS HAVE USED A VIRTUALLY IDENTICAL MARKETING SCHEME AND INVESTIGATORS IN A DOZEN OTHER STATES ARE ALSO LOOKING AT MET LIFE'S SALES PRACTICES AT A RECENT LIFE INSURANCE CONFERENCE IN HAWAII EXECUTIVES OF OTHER INSURANCE COMPANIES THANKED A MET LIFE REPRESENTATIVE FOR TAKING THE HEAT ON THE ISSUE BUT THE HEAT SOON MAY BE ON AN ENTIRE INDUSTRY LONG ACCUSTOMED TO FREEWHEELING METHODS AND LAX REGULATION IN WASHINGTON SENATOR HOWARD METZENBAUM PLANS TO HOLD HEARINGS SOON ON MET LIFE AND OTHER INSURERS THE OHIO DEMOCRAT ALONG WITH REPRESENTATIVE JOHN DINGELL A MICHIGAN DEMOCRAT WANTS AN EXPANDED FEDERAL ROLE IN INSURANCE REGULATION ANGER OVER SALES PRACTICES COULD PROVIDE ADDITIONAL MOTIVATION TO WREST AUTHORITY FROM THE STATES MEANWHILE STATE INSURANCE COMMISSIONERS ARE WORKING TO AVERT FEDERAL REGULATION BY TRYING TO ENFORCE THEIR OWN RULES MORE EFFECTIVELY MANY WANT TO FORCE THE COMPANIES TO BE MORE CANDID ABOUT THE INVESTMENT PROSPECTS OF LIFE INSURANCE BARRING INSURERS AND THEIR AGENTS FROM SUCH MISLEADING PRACTICES AS QUOTE ILLUSTRATING QUOTE POTENTIAL RETURNS WHEN SELLING INSTEAD AGENTS WOULD HAVE TO DISCLOSE PAST PERFORMANCE MUCH AS MUTUAL FUNDS DO STATES ARE ALSO CRACKING DOWN ON ONE OF THE MOST PERVASIVE FORMS OF LIFE INSURANCE FRAUD CALLED CHURNING SEEKING OUT POLICYHOLDERS WHO HAVE BEEN PAYING PREMIUMS FOR YEARS AND HAVE FINALLY BUILT UP SOME EQUITY IN THEIR POLICIES UNSCRUPULOUS AGENTS PERSUADE THEM TO BORROW AGAINST THE VALUE OF THEIR POLICIES AND ROLL THE PROCEEDS INTO A NEW UNNECESSARY POLICY LAST YEAR NEW YORK STATE SAID IT SUSPENDED OR FINED THIRTY LIFE INSURANCE AGENTS FOR CHURNING INCLUDING AGENTS WITH EQUITABLE COMPANIES GUARDIAN LIFE INSURANCE COMPANY OF AMERICA JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY AND MUTUAL LIFE INSURANCE COMPANY OF NEW YORK ALL THE COMPANIES SAY THAT THEY TRY TO MONITOR THEIR SALESPEOPLE BUT THAT WITH THOUSANDS OF THEM A FEW GO ASTRAY BUT NEW YORK'S INSURANCE COMMISSIONER SALVATORE CURIALE PROMISES MORE ACTION WARNING EXECUTIVES AND AGENTS SHOULD BE ON NOTICE THAT PENALTIES INCLUDING FINES AND LOSS OF LICENSES WILL BE FORTHCOMING THE EFFORTS TAKEN TOGETHER REPRESENT ONE OF THE LARGEST ASSAULTS ON THE LIFE INSURANCE INDUSTRY SINCE NINETEEN OH FIVE WHEN NEW YORK'S EXPLOSIVE ARMSTRONG COMMITTEE HEARINGS LED TO FAR REACHING REFORMS ALTHOUGH THE INDUSTRY HAS STEADFASTLY RESISTED CHANGE SINCE THEN IT NOW CONCEDES THAT IT HAS LITTLE CHOICE BUT TO TRY TO CLEANSE ITSELF WE MUST MAKE SURE THAT WE ARE NEVER VULNERABLE AGAIN NEW YORK LIFE'S GENERAL COUNSEL ALICE KANE SAID IN A SPEECH TO AGENTS FOLLOWING THE HERRERA DECISION THERE IS NO DOUBT WE ARE BEING HELD TO A HIGHER STANDARD OF ACCOUNTABILITY BOTH THE INDUSTRY AND AGENT GROUPS SAY HOWEVER THAT THE PROBLEMS ARE NOT WIDESPREAD AS THEY WANT TO BUILD UP LONG TERM RELATIONSHIPS WITH CUSTOMERS AND THUS HAVE NO INTEREST IN CHEATING THEM EVEN THOUGH CONSUMERS SPEND SOME SIXTY FIVE BILLION DOLLARS ANNUALLY ON VARIOUS FORMS OF LIFE INSURANCE FEW REALLY KNOW EXACTLY WHAT THEY ARE BUYING MOST WHO TRY TO READ A POLICY ARE OVERWHELMED WITH TERMS SUCH AS PAID UP ADDITION MORTALITY CHARGE AND WAIVE OF PREMIUM RIDER AS A RESULT MANY SIMPLY BOW TO AGENTS' HIGHPRESSURE TACTICS WITHOUT KNOWING WHAT THEY ARE BUYING OR ITS COST QUOTE TO GET THE SALESMAN OUT OF THE KITCHEN A LOT OF PEOPLE TAKE ON A BURDEN THEY CAN'T HANDLE QUOTE SAYS JAMES HUNT A WOBURN MASSACHUSETTS ACTUARY ASSOCIATED WITH THE NATIONAL INSURANCE CONSUMER ORGANIZATION LIFE INSURANCE AGENTS MEANWHILE HAVE TREMENDOUS FINANCIAL INCENTIVES TO SELL INSURANCE ANY WAY THEY CAN ESPECIALLY WHOLE LIFE POLICIES WHICH CARRY NOT ONLY A DEATH BENEFIT BUT ALSO AN INVESTMENT FEATURE THE TYPICAL WHOLE LIFE POLICY PAYS BIG COMMISSIONS TO AGENTS IN THE FIRST YEAR WHILE ACCUMULATING LITTLE VALUE FOR THE POLICYHOLDER FOR INSTANCE A FORTY FIVE YEAR OLD MALE WHO BUYS A THREE HUNDRED THOUSAND DOLLAR WHOLE LIFE POLICY MIGHT PAY ABOUT SIX THOUSAND EIGHT HUNDRED DOLLARS A YEAR IN PREMIUMS WHILE HE WON'T BREAK EVEN FOR FIVE OR EVEN TEN YEARS AND LOSES EVERYTHING IF HE CASHES OUT EARLIER THE AGENT WHO SOLD HIM THE POLICY IMMEDIATELY COLLECTS A COMMISSION EQUAL TO FIFTY FIVE PERCENT OF THE FIRST YEAR PREMIUMS OR THREE THOUSAND SEVEN HUNDRED FIFTY DOLLARS ADMINISTRATIVE EXPENSES AND COMMISSIONS FOR THE AGENT'S SUPERIORS EAT UP THE REST OF THE MONEY IN THE FIRST YEAR THE CONSUMER THROWS ALL HIS MONEY AWAY ON COSTS SAYS GLENN DAILY A FINANCIAL PLANNER IN NEW YORK BAD AS THAT IS FOR THE CONSUMER THE DECEIT AND FRAUD COMMITTED BY SOME AGENTS MAKE BUYING INSURANCE EVEN RISKIER AS THE HERRERA CASE INDICATES COURT TRANSCRIPTS AND EXHIBITS IN THE DUVAL COUNTY TRIAL ILLUMINATE SOME OF THE DARKER PRACTICES EXISTING IN THE INDUSTRY MR. HERRERA JOINED NEW YORK LIFE'S CORPUS CHRISTI OFFICE IN NINETEEN EIGHTY FIVE AT AGE THIRTY TWO DRIVEN BY WHAT HE SAID WAS GREED AND A FEAR OF BEING FIRED FOR NOT MEETING SALES QUOTAS HE SOON BEGAN TO CUT CORNERS ONE OF HIS VICTIMS WAS RICHARD CRUZ WHO HAD PURCHASED TERM LIFE INSURANCE A MODERATELY PRICED POLICY THAT PROVIDES A DEATH BENEFIT BUT NO INVESTMENT GAINS WHEN MR. CRUZ SPURNED MR. HERRERA'S ENTREATIES TO SWITCH TO A MORE EXPENSIVEAND FOR MR. HERRERA LUCRATIVE WHOLE LIFE POLICY MR. HERRERA TOOK MATTERS INTO HIS OWN HANDS HE FORGED MR. CRUZ'S NAME ON AN AUTHORIZATION FORM TO AUTOMATICALLY WITHDRAW ENOUGH MONEY FROM MR. CRUZ'S CHECKING ACCOUNT TO PAY THE HIGHER WHOLE LIFE PREMIUMS THE PRACTICE SOMETIMES DONE BY HOLDING THE AUTHORIZATION FORM UP AGAINST A WINDOW TO TRACE OUT A SIGNATURE IS COMMON ENOUGH IN THE INDUSTRY TO HAVE A NAME WINDOWING MR. CRUZ'S WIFE VERONICA DISCOVERED THE LARGER WITHDRAWALS AND COMPLAINED AFTER AN INVESTIGATION NEW YORK LIFE REVERSED THE TRANSACTIONS BUT TOOK NO ACTION AT THE TIME AGAINST MR. HERRERA MR. HERRERA ALSO PERSUADED HIS UNCLE JOSE LOPEZ TO BUY AN ANNUITY FOR TWENTY SEVEN THOUSAND DOLLARS FROM NEW YORK LIFE BUT ANNUITIES PAY SMALL COMMISSIONS COMPARED WITH WHOLE LIFE SO MR. HERRERA TOOK THE MONEY FORGED HIS UNCLE'S SIGNATURE AND BOUGHT HIM A THREE HUNDRED THOUSAND DOLLAR WHOLE LIFE INSURANCE POLICY BECAUSE MR. LOPEZ WAS SEVENTY THE ANNUAL PREMIUMS WERE STEEP WITHIN TWO YEARS ALL THE MONEY MR. LOPEZ PAID HAD BEEN EATEN UP BY THE PREMIUMS MR. LOPEZ COMPLAINED AND GOT HIS MONEY BACK MR. HERRERA'S BIGGEST FRAUD INVOLVED RAMIRO AND LAMAR HERNANDEZ WHO LIVED IN BENEVIDES A POOR DUVAL COUNTY TOWN SIXTY MILES WEST OF CORPUS CHRISTI MR. HERNANDEZ WORKED AS A ROUGHNECK SUPERVISING CREWS THAT LAID OIL FIELD PIPE WHEN THE OIL BUSINESS PROSPERED SO DID THE HERNANDEZ FAMILY WHEN THE BUSINESS SUFFERED THE HERNANDEZES WENT WITHOUT HOT WATER AND LIT THEIR SMALL HOUSE WITH CANDLES THEN MR. HERNANDEZ SUDDENLY CAME INTO MONEY IN NINETEEN EIGHTY SEVEN WHEN HE HAD A NECK OPERATION HIS SURGEON LEFT A SPONGE INSIDE HIM NEAR HIS SPINE AND MR. HERNANDEZ WAS PARALYZED FROM THE NECK DOWN HE SUED AND WON A THREE HUNDRED THIRTY ONE THOUSAND DOLLAR SETTLEMENT MR. HERRERA HEARD ABOUT IT AND ALONG WITH HIS MANAGER LAUNCHED A HARD SELL CAMPAIGN AIMED AT GETTING MR. HERNANDEZ TO BUY AS MUCH INSURANCE AS POSSIBLE AFTER BEING COURTED FOR SEVERAL MONTHS MR. HERNANDEZ AGREED TO INVEST ONE HUNDRED THOUSAND DOLLARS SPLIT AMONG THREE NEW YORK LIFE ANNUITIES BUT MR. HERRERA WOULD HAVE EARNED A COMMISSION OF ONLY A FEW THOUSAND DOLLARS SO HE REFOCUSED HIS EFFORTS ON MRS. HERNANDEZ AND EVENTUALLY PERSUADED HER TO SIGN UP FOR A ONE HUNDRED THOUSAND DOLLAR LIFE INSURANCE POLICY THEN HE INCREASED HER COVERAGE TO ONE MILLION DOLLARS BY CAREFULLY ADDING A ZERO TO THE COVERAGE POLICY A MOVE THAT INCREASED HIS COMMISSION TENFOLD FOR TWO YEARS THE FRAUD WENT UNDETECTED ALTHOUGH THE PREMIUMS CAME TO TWENTY SEVEN THOUSAND DOLLARS A YEAR MRS. HERNANDEZ NEVER GOT A BILL MR. HERRERA WOULD WITHOUT HER KNOWLEDGE MAKE THE PAYMENTS BY WITHDRAWING MONEY FROM HER ANNUITIES BY WINDOWING SIGNATURES ON AUTHORIZATION FORMS EVENTUALLY THE MONEY IN THE ANNUITY ACCOUNT RAN OUT AND IN EARLY NINETEEN NINETY ONE MRS. HERNANDEZ GOT A TWENTY SEVEN THOUSAND DOLLAR BILL FROM NEW YORK LIFE WHICH SAID HER POLICY WOULD LAPSE IF SHE FAILED TO PAY THE PREMIUM SHE DISCOVERED THE FRAUD AND FILED SUIT DURING THE TRIAL NEW YORK LIFE USED THE EVIDENCE AGAINST MR. HERRERA TO PORTRAY HIM AS A CON MAN WHO ACTED ALONE BUT MRS. HERNANDEZ'S ATTORNEY FRANK HERRERA NO RELATION TO OSCAR PRESENTED EVIDENCE THAT OSCAR HERRERA'S ACTIONS GREW OUT OF THE CULTURE OF THE CORPUS CHRISTI OFFICE OSCAR HERRERA'S ATTORNEY ROLAND LEON TOOK A SIMILAR APPROACH AT THE TIME MR. HERRERA SOLD THE POLICY TO MRS. HERNANDEZ THE CORPUS CHRISTI OFFICE WAS HEADED BY RONALD DAWSON MR. DAWSON WHO HAS SINCE LEFT NEW YORK LIFE WAS AMONG ITS MOST SUCCESSFUL SALES MANAGERS AGENTS WHO WORKED FOR HIM WERE UNDER TREMENDOUS PRESSURE TO SELL QUOTE IT WAS DO OR DIE QUOTE TESTIFIED RONALD GARZA A FORMER AGENT IN THE OFFICE ANOTHER AGENT OSWALDO SONNY COREA TESTIFIED THAT HIS MANAGER ENCOURAGED HIM TO BOOST COMMISSIONS BY CONVERTING TERM POLICIES TO WHOLE LIFE INCLUDING POLICIES OWNED BY HIS FATHER AND UNCLE MR. COREA SAID HE QUIT RATHER THAN AGREE TO CHEAT I DIDN'T WANT TO GET CAUGHT UP IN A SYSTEM WHERE I HAD TO DO ILLEGAL STUFF TO MEET MANAGEMENT REQUIREMENTS AND MANAGEMENT GOALS HE TESTIFIED HE ALSO SAID THAT WINDOWING WAS COMMONPLACE AND THAT HE SAW MR. HERRERA HOLD UP AUTHORIZATION FORMS AGAINST A WINDOW TO TRACE SIGNATURES MR. HERRERA WHO ADMITTED FORGERIES HAS LEFT NEW YORK LIFE MANAGEMENT MEMOS IN THE CORPUS CHRISTI OFFICE WRITTEN AFTER MR. DAWSON WAS REASSIGNED TO ANOTHER OFFICE BACK UP MUCH OF WHAT THE AGENTS ALLEGED ONE MEMO WARNED AGAINST WINDOWING IN THE PAST THIS OFFICE HAS HAD A VERY VERY LOOSE ATTITUDE REGARDING WINDOWING SIGNATURES ANOTHER CAUTIONED AGAINST UNAUTHORIZED CONVERSIONS OF TERM LIFE POLICIES INTO WHOLE LIFE ONE LAST TIME ON TERM CONVERSIONS WE HAVE TO BE CAREFUL THEY'RE WATCHING US QUOTE MR. DAWSON HIMSELF BECAME THE SUBJECT OF A NEW YORK LIFE INVESTIGATION INTO COMMISSION SWITCHING AT NEW YORK LIFE AND OTHER INSURERS GENERAL MANAGERS GET BONUSES BASED ON HOW MANY OF THEIR AGENTS REACH A CERTAIN SALES LEVEL IF ONE AGENT MADE THE LEVEL AND ANOTHER FELL SHORT ACCORDING TO WITNESSES IN THE HERRERA TRIAL MR. DAWSON WOULD ENCOURAGE THE MORE SUCCESSFUL AGENT TO BE A TEAM PLAYER AND SWITCH ENOUGH OF HIS COMMISSIONS TO THE OTHER AGENT SO BOTH COULD QUALIFY THE SUCCESSFUL AGENT WOULD BE REPAID IN THE FUTURE IN A DEPOSITION MR. DAWSON SAID HE ALLOWED COMMISSION SWITCHING ONLY FOR CLERICAL REASONS AND DENIED PRESSURING AGENTS TO CHEAT A LAWYER FOR HIM ASSERTS THAT THERE WAS NO CREDIBLE EVIDENCE AT THE HERRERA TRIAL LINKING RON DAWSON TO ANY UNETHICAL CONDUCT OR WRONGDOING JURORS WERE PLAINLY OUTRAGED BY WHAT THEY HEARD ALTHOUGH MR. HERRERA WAS A DEFENDANT IN THE CIVIL CASE THEY DIDN'T HOLD HIM FINANCIALLY LIABLE INSTEAD THEY HELD NEW YORK LIFE RESPONSIBLE FOR HIS ACTIONS THEY FOUND THAT IT HAD CHEATED MRS. HERNANDEZ AND ORDERED IT TO PAY HER SIXTY FIVE THOUSAND DOLLARS FOR ACTUAL DAMAGES ONE MILLION DOLLARS FOR MENTAL ANGUISH FIVE MILLION DOLLARS FOR LEGAL FEES AND FIFTEEN MILLION DOLLARS IN PUNITIVE DAMAGES A SUM THEY DEEMED JUST PUNISHMENT FOR A COMPANY WITH A NET WORTH OF TWO POINT SIX BILLION DOLLARS SINCE AGREEING TO SETTLE THE CASE BEFORE TAKING IT TO APPEAL NEW YORK LIFE HAS HELD SEMINARS AND SHOWED EMPLOYEES A VIDEOTAPE DESCRIBING THE HERRERA CASE TO MAKE SURE AGENTS FOLLOW ETHICAL PRACTICES AS FOR MRS. HERNANDEZ SHE BEGAN GETTING CALLS FROM LIFE INSURANCE AGENTS EVEN BEFORE THE TRIAL ENDED HER ATTORNEY SAYS THE AGENTS TOLD HER THAT SHE SHOULDN'T THINK BADLY OF THEM JUST BECAUSE ONE AGENT BURNED HER IN THE ANCIENT ISLAMIC LEARNING CENTERS OF IRAN AND IRAQ A POWER STRUGGLE IS TAKING PLACE TO CHOOSE THE SUPREME SPIRITUAL LEADER OF THE WORLD'S SHIITE MUSLIMS THE RESULT OF THE STRUGGLE COULD EITHER INCREASE THE CLOUT OF IRAN'S THEOCRATIC REGIME OR STRENGTHEN THE SCHOOL OF THOUGHT THAT VALUES SEPARATION OF CHURCH AND STATE BECAUSE OF THE HIGH STAKES THE GOVERNMENTS OF IRAN AND IRAQ ARE MEDDLING IN WHAT HAS TRADITIONALLY BEEN A PURELY SPIRITUAL MATTER WHILE THEY ARE ONLY ABOUT TEN PERCENT OF THE WORLD'S ONE BILLION MUSLIMS SHIITES ARE THE OVERWHELMINGLY DOMINANT SECT IN IRAN AND THE MAJORITY IN IRAQ UNLIKE SUNNI MUSLIMS SHIITES HAVE A WELL ORGANIZED HIERARCHICAL CLERGY TO WHICH BELIEVERS LOOK FOR GUIDANCE ON EVERY ASPECT OF LIFE A HANDFUL OF THE MOST LEARNED SCHOLARS AND JURISTS HAVE THE RANK OF GRAND AYATOLLAH AND FROM AMONG THEM IS CHOSEN USUALLY BY CONSENSUS THE MARJA OR SPIRITUAL LEADER TRADITIONALLY THE SELECTION HAS TAKEN PLACE IN THE HOLY CITY OF NAJAF IN SOUTHERN IRAQ WHICH HAS HAD A SHIITE SEMINARY FOR OVER A THOUSAND YEARS MOST OF THE SECT'S STAR CLERGY INCLUDING THE LATE GRAND AYATOLLAH RUHOLLAH KHOMEINI HAVE BEEN TRAINED THERE BUT SADDAM HUSSEIN'S INTERFERENCE IN THE RELIGIOUS SCHOOLS CULMINATING IN HIS BLOODY SUPPRESSION OF A SHIITE LED UPRISING IN SOUTHERN IRAQ AFTER THE GULF WAR HAS LEFT THE SEMINARIES DEVASTATED HUNDREDS OF TEACHERS AND SCHOLARS HAVE BEEN KILLED OR IMPRISONED ANCIENT LIBRARIES HAVE BEEN BURNED OR LOOTED DESTROYING PRICELESS ISLAMIC MANUSCRIPTS THAT HAD YET TO BE STUDIED BY MODERN METHODS ARRESTS HARASSMENT AND SUDDEN CLOSURES OF RELIGIOUS SCHOOLS HAVE CAUSED MANY SHIITES TO FLEE QUOTE THE CENTERS OF LEARNING ARE FUNCTIONING BUT THEY ARE BETWEEN LIFE AND DEATH QUOTE SAYS SHEIK FADHEL AL SAHLANI OF THE IMAM AL KHOEI ISLAMIC CENTER IN NEW YORK CITY THOSE WHO REMAIN WILL STAY THERE NO MATTER WHAT WITH THE AIM OF MAKING SURE THE NAJAF SURVIVES AMONG THOSE REMAINING IN NAJAF IS GRAND AYATOLLAH ALI AL HUSSAINI AL SEESTANI WHOM MANY SHIITES BELIEVE SHOULD BE RECOGNIZED AS THE NEXT MARJA THE POST BECAME VACANT THROUGH THE DEATHS IN QUICK SUCCESSION OF TWO RENOWNED AND RESPECTED GRAND AYATOLLAHS ABDUL QASSEM AL KHOEI IN IRAQ AND MUHAMMAD REZA GOLPAYEGANI IN IRAN AYATOLLAH SEESTANI SIXTY THREE YEARS OLD WAS A STUDENT OF AYATOLLAH KHOEI AND SHARES HIS BELIEF THAT IN MODERN TIMES A SPIRITUAL LEADER MUST STAY CLEAR OF POLITICAL POWER POLITICAL REALITIES HE BELIEVES WOULD INEVITABLY FORCE THE SPIRITUAL LEADER TO ACT OR ENDORSE ACTIONS CONTRARY TO ISLAM BY CONTRAST IRAN SINCE THE ISLAMIC REVOLUTION HAS SOUGHT TO UNIFY STATE AND SPIRITUAL POWER TOWARD THAT END IRAN CLAIMS THAT SINCE NAJAF IS SO BELEAGUERED BY SADDAM HUSSEIN'S REGIME THE ROLE OF CHOOSING THE MARJA SHOULD FALL TO IRAN'S HOLY CITY OF QUM IRAN CAME CLOSE TO UNIFYING STATE AND SPIRITUAL POWER UNDER AYATOLLAH KHOMEINI WHOSE RELIGIOUS CREDENTIALS WERE RECOGNIZED AS IMPRESSIVE EVEN BY SHIITES WHO DISAGREED WITH MANY OF HIS ACTIONS HIS SUCCESSOR AYATOLLAH ALI KHAMENEI HASN'T NEARLY SUCH GOOD CREDENTIALS AND DOESN'T EVEN HOLD THE RANK OF GRAND AYATOLLAH LEADING FIGURES IN IRAN ARE PROMOTING GRAND AYATOLLAH MOHAMMED ALI ARAGI A FRAIL SCHOLAR SAID TO BE OVER ONE HUNDRED YEARS OLD AND PHYSICALLY FAILING SOME IRAQI SHIITES FEAR THAT THE REGIME ONLY WANTS TO HAVE AS MARJA A FIGURE TOO WEAK TO STAND IN THE WAY OF ITS WILL YET MANY SHIITES ALSO ARE ALARMED AT THE POWER SADDAM HUSSEIN NOW WIELDS IN THE SEMINARIES OF SOUTHERN IRAQ BEFORE THE GULF WAR SADDAM HUSSEIN A SUNNI CONTAINED HIS PERSECUTION OF PROMINENT SHIITES TRYING TO PORTRAY HIMSELF AS LEADER OF ALL THE IRAQI PEOPLE BUT THE TONE CHANGED MARKEDLY DURING THE SUPPRESSION OF THE UPRISING WHEN IRAQI ARMY TANKS ROLLED INTO THE HOLY CITIES BLAZONED WITH BANNERS READING NO MORE SHIITES AFTER TODAY MANY BELIEVE THAT THE DEATH OF AYATOLLAH KHOEI IN AUGUST OF NINETEEN NINETY TWO WAS HASTENED BY IRAQI GOVERNMENT PERSECUTION WILLIAM W. LYNCH SIXTY SEVEN YEARS OLD SAID HE WILL RETIRE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BANK HOLDING COMPANY EFFECTIVE JULY FIRST HE WILL BE SUCCEEDED BY LOUIS O. DAVIS JUNIOR FORTY SIX WHO IS CURRENTLY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER JAMES S. CARLUCCIO FORTY YEARS OLD FORMERLY SENIOR VICE PRESIDENT WAS NAMED AN EXECUTIVE VICE PRESIDENT OF THIS COMPUTER SYSTEMS AND SERVICES CONCERN AS WELL AS A MEMBER OF THE OFFICE OF THE CHAIRMAN FRED P. CORSON FIFTY TWO YEARS OLD VICE PRESIDENT AND DIRECTOR OF RESEARCH AND DEVELOPMENT WAS NAMED A DIRECTOR OF THIS CHEMICAL CONCERN INCREASING BOARD MEMBERSHIP TO SEVENTEEN F. JAY TAYLOR SEVENTY YEAR OLD FORMER PRESIDENT OF LOUISIANA TECH UNIVERSITY AND CURRENTLY A LABOR MANAGEMENT ARBITRATOR WAS ELECTED A DIRECTOR OF THIS RAILROAD HOLDING COMPANY INCREASING BOARD MEMBERSHIP TO TEN LAWRENCE R. HAUT THIRTY THREE YEARS OLD WAS NAMED VICE PRESIDENT AND GENERAL COUNSEL A NEW POSITION AT THIS SOFA BED RETAILER MR. HAUT HAD BEEN AN ATTORNEY AT NEW YORK LAW FIRM SCHULTE ROTH AND ZABEL GENERAL TIRE INCORPORATED THE U. S. AND CANADIAN ARM OF CONTINENTAL A. G. PLANS TO BOOST TIRE PRICES THREE PERCENT TO FIVE PERCENT EFFECTIVE MAY FIRST THE INCREASE COVERS ALL LINES OF GENERAL AND CONTINENTAL BRAND TIRES PRODUCED FOR THE U. S. REPLACEMENT MARKET SAM BOYER THIRTY SIX YEARS OLD AND A CO FOUNDER OF THIS COFFEE ROASTING COMPANY WAS NAMED TO THE NEWLY CREATED POST OF VICE CHAIRMAN THE COMPANY ALSO INCREASED THE BOARD TO EIGHT MEMBERS ADDING TWO DIRECTORS THOMAS BONOMA FORTY SEVEN OF CONSULTING FIRM BGI CAMBRIDGE MASSACHUSETTS AND ADRIAN J. SLYWOTZKY FORTY THREE OF CONSULTING FIRM CORPORATE DECISIONS INCORPORATED BOSTON MORE THAN HALF THE EMPLOYEES OF AIR FRANCE THE FRENCH STATE AIRLINE WOULD APPROVE A SALARY CUT AS PART OF EFFORTS TO BRING THE AIRLINE BACK TO PROFITABILITY AN INTERNAL COMPANY SURVEY SHOWS THE SURVEY OF FOURTEEN THOUSAND SIX HUNDRED SEVENTY SEVEN EMPLOYEES IN AN INTERNAL PUBLICATION ALSO SHOWS THEY AGREE OVERWHELMINGLY WITH MANAGEMENT THAT AIR FRANCE'S PROBLEMS ARE QUOTE EXTREMELY SERIOUS QUOTE AND THAT THE STAFF IS MORE CONCERNED WITH INTERNAL QUESTIONS THAN CLIENTS STILL ON THE SALARY CUT QUESTION TWENTY SEVEN PERCENT SAID IT WAS AN INAPPROPRIATE MEASURE AND TWELVE PERCENT SAID IT WAS AN INJUSTICE EVEN THOSE IN FAVOR SAID THAT IT WAS AN IDEA THAT HAD TO BE QUALIFIED TO BE IMPLEMENTED THE AIRLINE WAS WRACKED BY A CRIPPLING STRIKE LAST OCTOBER AFTER GROUND CREW BECAME IRATE OVER EFFORTS TO CUT MILEAGE ALLOWANCES AND OVERTIME AS PART OF A LARGER LAYOFF AND COST CUTTING PLAN THE MOVE COINCIDED WITH AN INCREASE IN PAY FOR SOME FLYING STAFF THE RESULT OF AGREEMENTS THAT WERE PREVIOUSLY IN PLACE ASK FOR A SKETCH OF THE GLOBAL ECONOMY AND IT'S LIKELY TO BE DOMINATED BY THREE BIG BLOBS FOR JAPAN WESTERN EUROPE AND NORTH AMERICA WELL IT'S TIME TO GO BACK TO THE DRAWING BOARD INSISTS JEFFREY GARTEN A SOMETIME ACADEMIC MERCHANT BANKER AND ECONOMIC POLEMICIST WHO IS NOW U. S. UNDERSECRETARY OF COMMERCE FOR INTERNATIONAL TRADE HE SAYS SEVENTY FIVE PERCENT OF THE WORLD'S TOTAL TRADE GROWTH FOR YEARS TO COME WILL INVOLVE TEN QUITE DIFFERENT PLACES ALL OF THEM LARGE DEVELOPING NATIONS TRYING TO EXPAND FREE MARKET SYSTEMS AND BECAUSE THAT'S WHERE THE MONEY IS U. S. FOREIGN ECONOMIC POLICY IS BEING REVISED ACCORDINGLY EXPANDING U. S. EXPORTS IS THE GOAL AND QUOTE THIS IS WHERE THE EFFORTS OF GOVERNMENT WILL PAY OFF THE MOST QUOTE HE CONTENDS THAT MAKES SENSE TO MANY AMERICAN EXECUTIVES WHO'D LIKE MORE OFFICIAL HELP WHEN COMPETING IN A COMPLEX FAST CHANGING WORLD THEY WANT PRESIDENT CLINTON TO FIGHT FOR THEM JUST AS FOREIGN LEADERS BATTLE FOR THEIR OWN COMMERCIAL INTERESTS SO FAR SO GOOD WE'RE ALL ENCOURAGED THAT WE'RE GOING DOWN THE RIGHT PATH TOGETHER SAYS DANIEL MEYER CHAIRMAN OF CINCINNATI MILACRON INCORPORATED A LEADING MACHINE TOOL MAKER THE PATH LEADS MAINLY TO MR. GARTEN'S TEN LARGE EMERGING MARKETS ARGENTINA BRAZIL MEXICO POLAND SOUTH AFRICA INDIA TURKEY SOUTH KOREA AND INDONESIA PLUS THE ECONOMIC ZONE OF CHINA HONG KONG AND TAIWAN MOST HAVE GREAT GEOGRAPHICAL SIZE AND POPULATIONS FREE MARKET REFORMS AND HIGH GROWTH RATES BY THE YEAR TWO THOUSAND TEN THEY'LL DOUBLE THEIR SHARE OF GLOBAL OUTPUT AND THEIR MERCHANDISE IMPORTS BY THEN WILL BE ONE TRILLION DOLLARS HIGHER THAN IN NINETEEN NINETY PLUS SERVICES THAT'S TRIPLE THE COMBINED INCREASE EXPECTED FOR JAPAN EUROPE NORTH AMERICA AND THE WORLD'S ONE HUNDRED TWENTY OTHER DEVELOPING NATIONS THUS MR. GARTEN WHO WROTE A BOOK DESCRIBING ECONOMIC COMBAT BETWEEN THE U. S. JAPAN AND GERMANY NOW SAYS THE VISION I ONCE HAD OF A TRI POLAR GLOBAL ECONOMY BEGINS TO FADE THIS TOP TEN ISN'T RIGID THAILAND COULD BE ADDED SOON AND VIETNAM LATER WHILE POLITICAL UNREST MIGHT CAUSE OTHERS SUCH AS SOUTH AFRICA TO DROP OFF RUSSIA REMAINS A SPECIAL CASE DESERVING GREAT ATTENTION FOR REASONS OTHER THAN PURE ECONOMICS BUT THE MAIN POINT HOLDS THERE'S A SHORT LIST OF BIG DEVELOPING NATIONS THAT OFFER A DISPROPORTIONATE SHARE OF ECONOMIC OPPORTUNITY AND THAT'S WHERE THE U. S. GOVERNMENT WANTS BUSINESS TO TRY HARDER IT PLANS TO HELP IN SEVERAL WAYS FOR ONE THING IT WILL OFFER MORE FINANCING SUPPORT BECAUSE SALES TERMS CAN BE DECISIVE WASHINGTON WILL CHANNEL EXPORT IMPORT BANK LOANS TIED AID WHICH ECONOMISTS HATE BUT BUSINESSMEN LOVE AND POLITICAL RISK INSURANCE INTO THESE TEN AREAS ALTHOUGH IT'S NOT LIKELY TO MATCH AMOUNTS OFFERED BY SAY JAPAN A NEW ADVOCACY CENTER WITHIN THE COMMERCE DEPARTMENT WILL TRACK THE FIFTY TO ONE HUNDRED LARGEST OVERSEAS PROJECTS VIEWED AS INTERESTING TO U. S. COMPANIES AND THERE WILL BE A VIGOROUS LOBBYING EFFORT FOR TOO MANY YEARS WE HAVE SEEN PRESIDENT MITTERRAND AND CHANCELLOR KOHL AND PRIME MINISTER MAJOR GET ON AIRCRAFT TO FLY TO THE DISTANT CORNERS OF THE WORLD TO PROMOTE THEIR BUSINESS AND INDUSTRY COMPLAINS COMMERCE SECRETARY RON BROWN U. S. LEADERS HAVEN'T BEEN AS AGGRESSIVE BUT THAT HAS CHANGED HE VOWS SUCH FLAG WAVING CAN BE AN ENORMOUS HELP SAYS THE EXPORT DIRECTOR OF ONE LARGE U. S. COMPANY THE ADMINISTRATION ALSO IS GATHERING BETTER MARKET DATA ESPECIALLY FOR NEW EXPORT ASSISTANCE CENTERS IN MIAMI BALTIMORE CHICAGO AND LOS ANGELES OTHERS WILL OPEN SOON THESE ARE SUPPOSED TO HELP SMALLER COMPANIES ONLY FIFTY MANUFACTURERS NOW PROVIDE HALF OF U. S. EXPORTS THE DATA ALSO WILL GO INTO SPECIFIC MARKETING PLANS FOR THESE TEN BECAUSE U. S. MARKET SHARE IN SOME OF THEM SUCH AS INDONESIA IS SLIPPING WASHINGTON ALSO WILL RELAX MORE EXPORT CONTROLS AS IT DID RECENTLY FOR COMPUTERS IT WANTS U. S. COMPANIES FREE TO EXPORT ALMOST ANYTHING READILY AVAILABLE ON COMMERCIAL TERMS NOW THEY CAN'T FOR EXAMPLE THE U. S. BLOCKS TRUCK SALES TO IRAN DIVERTING UP TO ONE BILLION DOLLARS OF ANNUAL SALES TO SUCH RIVALS AS VOLVO AND MITSUBISHI THERE ARE ALSO HINTS THAT HUMAN RIGHTS SANCTIONS MAY BECOME LESS STRINGENT ALTHOUGH MR. GARTEN WARNS THAT NO U. S. ADMINISTRATION CAN EVER BE TOTALLY MERCANTILIST ABOUT THEM THE OVERALL GOAL IS A MORE COHERENT LONGER TERM EXPORT STRATEGY THAN HAS BEEN THE U. S. HABIT WASHINGTON ASSUMES IT CAN'T ASSIST MUCH IN THE MATURE EUROPEAN ECONOMY AND JAPAN WON'T BE A GREAT BONANZA EVEN IF TRADE BARRIERS FALL BUT IT SEES ENORMOUS OPPORTUNITIES ELSEWHEREPLUS WAYS TO HELP EXPLOIT THEM JAPAN UNVEILED A SIX HUNDRED SEVENTY FIVE BILLION DOLLAR BUDGET FOR THE FISCAL YEAR STARTING THIS APRIL AIMED AT STIMULATING THE NATION'S BATTERED ECONOMY IT IS LIKELY TO BE ONLY THE FIRST OF SEVERAL SPENDING PACKAGES FROM THE GOVERNMENT THE BUDGET WHICH STILL NEEDS PARLIAMENTARY APPROVAL REVEALS JAPAN'S CONFLICTING GOALS OF BOOSTING ITS ECONOMY WHILE KEEPING DEBT DOWN THERE IS SMALL GROWTH IN MOST OUTLAYS INCLUDING DEFENSE AND OVERSEAS AID THE ONLY MAJOR GROWTH IS IN PUBLIC WORKS SPENDING WHICH IS EARMARKED TO RISE TO ELEVEN POINT ONE TRILLION YEN ONE HUNDRED TWO POINT FOUR BILLION DOLLARS A THIRTY PERCENT INCREASE FROM A YEAR EARLIER IF SPECIAL PROJECTS ARE INCLUDED QUOTE IT'S RELATIVELY TIGHT QUOTE SAYS TAKASHI OSHIO ECONOMIST AT J. P. MORGAN AND COMPANY EVERY EXPENDITURE ITEM IS RESTRICTIVE COMPARED TO LAST YEAR EXCEPT FOR PUBLIC WORKS THE BUDGET PROJECTS A SHARP REVENUE SHORTFALL BECAUSE OF TAX CUTS DESIGNED TO PROMOTE A CONSUMER LED BUSINESS RECOVERY AS A RESULT THE GOVERNMENT EXPECTS TO ISSUE THREE POINT ONE FOUR TRILLION YEN IN DEFICIT FINANCING BONDS NEXT YEAR THE FIRST TIME IN FIVE YEARS THAT JAPAN HAS ISSUED DEFICIT BONDS IF THE PRIVATE ECONOMISTS ARE RIGHT THEN LATER THIS YEAR A THREE TRILLION TO FOUR TRILLION YEN SHORTFALL CAN'T BE RULED OUT MR. OSHIO SAYS THAT MEANS SUPPLEMENTAL BUDGETS AND ADDITIONAL BOND ISSUANCES AND POSSIBLY HIGHER JAPANESE INTEREST RATES LUCKILY INFLATION IS UNLIKELY TO BE A MAJOR WORRY MOST ECONOMISTS SAY A SUPPLEMENTAL BUDGET WOULDN'T BE A MAJOR SURPRISE POSTWAR JAPAN HAS NEVER GONE A YEAR WITHOUT ONE THE BUDGET CONTAINS SOME UNUSUAL FINANCING SCHEMES TO ACHIEVE ITS REVENUE TARGETS THE GOVERNMENT WILL FOR EXAMPLE ACCELERATE A LOAN REDEMPTION PLAN BUT WILL ISSUE BONDS TO FUND THE LOCAL GOVERNMENTS THAT HAVE TO REPAY THEIR NATIONAL LOANS FASTER THE JAPANESE BUDGET USUALLY COMES OUT IN DECEMBER BUT IT WAS DELAYED THIS YEAR BY DEBATE IN THE DIET OVER POLITICAL REFORM THE DELAY MEANS THE BUDGET WON'T REACH PARLIAMENT BEFORE MARCH AND TINKERING AND DEBATES LIKELY WILL DELAY PASSAGE UNTIL MAY THAT IS WHY JAPAN'S SIX TRILLION YEN IN NATIONAL AND LOCAL TAX CUTS ANNOUNCED EARLIER THIS WEEK THOUGH RETROACTIVE TO JANUARY FIRST WON'T REACH CONSUMERS UNTIL JUNE OR JULY THE GOVERNMENT YESTERDAY ALSO APPROVED A THIRD SUPPLEMENTAL BUDGET FOR THE CURRENT FISCAL YEAR VALUED AT TWO POINT ONE EIGHT TRILLION YEN INCLUDING ONE POINT FIVE TRILLION YEN FOR PUBLIC WORKS WHICH SHOULD TIDE THE GOVERNMENT OVER UNTIL THE NEXT YEAR'S BUDGET KICKS IN THE SUPPLEMENTAL BUDGET WILL BE INTRODUCED TO PARLIAMENT NEXT WEEK GARY U. ROLLE FIFTY TWO YEARS OLD WAS ELECTED A DIRECTOR OF THIS OPERATOR OF LONG TERM HEALTH CARE FACILITIES MR. ROLLE WHO IS EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF TRANSAMERICA CORPORATION'S OCCIDENTAL LIFE INSURANCE COMPANY UNIT FILLS THE VACANCY CREATED WHEN ROY E. CHRISTENSEN SIXTY RESIGNED LAST MONTH ROBERT L. GERRY THE THIRD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED VICE CHAIRMAN OF THE BOARD OF THIS OIL AND NATURAL GAS COMPANY AND ITS MANAGEMENT COMPANY TORCH ENERGY ADVISORS INCORPORATED A UNIT OF TORCHMARK CORPORATION MICHAEL D. WATFORD FORTY YEARS OLD SUCCEEDED MR. GERRY WHO IS FIFTY SIX MR. WATFORD FORMERLY PRESIDENT OF TORCH ENERGY MARKETING INCORPORATED A UNIT OF TORCH ENERGY ADVISORS WAS ALSO NAMED A DIRECTOR INCREASING THE NUMBER OF BOARD MEMBERS TO NINE H. C. A. HOSPITAL CORPORATION OF AMERICA IS BEING DELETED FROM THE HEALTH CARE PROVIDERS INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY H. C. A. MERGED WITH COLUMBIA HEALTHCARE CORPORATION WHICH IS IN THE SAME INDUSTRY GROUP THE COMBINED COMPANIES NAMED COLUMBIA H. C. A. HEALTHCARE CORPORATION REMAIN IN THE INDEX RICHARD W. POGUE SIXTY FIVE YEARS OLD WAS NAMED A DIRECTOR OF THIS COMPANY INCREASING THE BOARD'S SIZE TO FIFTEEN MEMBERS MR. POGUE IS A SENIOR PARTNER AT THE CLEVELAND LAW FIRM OF JONES DAY REAVIS AND POGUE T. R. W. PROVIDES HIGHTECH PRODUCTS AND SERVICES TO THE AUTOMOTIVE AEROSPACE AND DEFENSE INDUSTRIES INVESTORS' NERVOUSNESS ABOUT RISING INTEREST RATES KNOCKED STOCK PRICES LOWER BOND PRICES AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SLID THIRTY SIX POINT FIVE EIGHT POINTS TO THREE THOUSAND EIGHT HUNDRED NINETY FIVE POINT THREE FOUR STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX DROPPED THREE POINT EIGHT FOUR TO FOUR HUNDRED SIXTY EIGHT POINT NINE THREE AND THE NASDAQ COMPOSITE INDEX LOST THREE POINT ONE ONE TO SEVEN HUNDRED EIGHTY THREE POINT FOUR TWO THE MARKET WAS WEAKENED AT MIDDAY WHEN ELAINE GARZARELLI A WELL KNOWN ANALYST AT LEHMAN BROTHERS SAID A FOUR PERCENT TO SEVEN PERCENT CORRECTION IS POSSIBLE ALTHOUGH SHE REMAINS BULLISH A PARTIAL RECOVERY GAVE WAY TO A LATE ROUND OF SELLING THAT LEFT THE INDUSTRIALS NEAR THE DAY'S LOW WEAKENING BOND PRICES IN THE FINAL HOUR OF STOCK TRADING SPARKED THE SELL OFF ANALYSTS SAID STOCK MARKET INVESTORS MOVED IN TO POCKET PROFITS ON MANY HIGH FLYING ECONOMICALLY SENSITIVE STOCKS AUTO AND HEAVY MACHINERY MANUFACTURERS WERE AMONG THE STOCKS HIT THE WORST QUOTE THOSE ARE THE CYCLICALS THAT HAVE BEEN THE BIGGEST WINNERS NOT JUST OVER THE PAST FEW MONTHS BUT THE PAST FEW YEARS QUOTE SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH INTEREST RATES ROSE ACROSS THE BOARD EVEN AS THE TREASURY'S AUCTION OF ELEVEN BILLION DOLLARS IN THIRTY YEAR BONDS WAS LARGELY SUCCESSFUL BUT STOCK AND BOND INVESTORS REMAIN JITTERY ABOUT TODAY'S RELEASE OF JANUARY WHOLESALE PRICE DATA A LARGER THAN EXPECTED JUMP COULD BATTER BOTH MARKETS MR. SOLLOWAY SAID ANOTHER SMALL RISE IN SHORT TERM RATES IS POSSIBLE SOON BUT ADDED HE DOESN'T THINK THE FEDERAL RESERVE WILL PUSH THEM UP THAT FAR OR FAST IN THE NEXT NINE TO TWELVE MONTHS WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST ZERO POINT ONE SIX TO ONE HUNDRED FIFTEEN POINT EIGHT OH STOCK PRICES DECLINED VOLUME TOTALED THREE HUNDRED TWENTY FIVE MILLION SEVEN HUNDRED SIXTY THOUSAND SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND THREE HUNDRED ELEVEN ISSUES FELL AND EIGHT HUNDRED ELEVEN ROSE THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN FIVE THREE THREE MARKS AND ONE HUNDRED EIGHT POINT ONE FIVE YEN COMPARED WITH ONE POINT SEVEN FIVE EIGHT FIVE MARKS AND ONE HUNDRED EIGHT POINT THREE FIVE YEN WEDNESDAY ELIZABETH J. ALLAN MANAGER OF JAPAN FUND WAS NAMED LEAD MANAGER OF TWO MORE STOCK MUTUAL FUNDS ADVISED BY SCUDDER STEVENS AND CLARK INCORPORATED MS. ALLAN SUCCEEDS FUND MANAGER ANDREW ECONOMOS WHO LEFT SCUDDER MS. ALLAN WILL CONTINUE TO BE LEAD PORTFOLIO MANAGER OF THE INVESTMENT TEAM RUNNING JAPAN FUND WHICH IS MANAGED BY SCUDDER SHE WILL ALSO TAKE THE LEAD MANAGER ROLE AT SCUDDER PACIFIC OPPORTUNITIES FUND WHICH INVESTS IN PACIFIC RIM COUNTRIES OTHER THAN JAPAN SCUDDER MUTUAL FUNDS ARE RUN BY MANAGEMENT TEAMS WITH THE LEAD PORTFOLIO MANAGER USUALLY MAKING THE FINAL DECISION ON BUYING AND SELLING STOCKS MS. ALLAN WILL ALSO LEAD THE TEAM RUNNING SCUDDER NEW ASIA FUND A QUOTE CLOSED END QUOTE OR PUBLICLY TRADED STOCK FUND WHICH INVESTS IN ASIAN COUNTRIES INCLUDING JAPAN OLYMPIC AIRWAYS THE STATE OPERATED NATIONAL CARRIER WILL RECEIVE A ONE HUNDRED FORTY TWO MILLION DOLLAR BANK LOAN TO COVER A GROWING DEFICIT IN ITS NINETEEN NINETY FOUR OPERATING BUDGET NEWSPAPERS REPORTED THAT THE LOAN GRANTED BY THREE STATE OWNED BANKS WILL COVER AN EXPECTED DEFICIT IN OLYMPIC'S OPERATING BUDGET FROM DECEMBER NINETEEN NINETY THREE UNTIL THE END OF APRIL INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE DROPPED FORTY SEVEN THOUSAND IN THE WEEK ENDED FEBRUARY FIFTH TO THREE HUNDRED SIXTY SIX THOUSAND THE LABOR DEPARTMENT SAID THE BIG DROP IN CLAIMS FOLLOWS A LARGE RISE THE PREVIOUS WEEK WHICH MANY ANALYSTS SAY PROBABLY WAS DUE TO EARTHQUAKE RELATED LAYOFFS IN CALIFORNIA AND COLD WEATHER INDUCED CONSTRUCTION CUTBACKS ACROSS MUCH OF THE NATION HOWEVER MARILYN SCHAJA MONEY MARKET ANALYST FOR DONALDSON LUFKIN AND JENRETTE SAID THE RECENT TREND IN UNEMPLOYMENT CLAIMS IS STILL DISTURBING SHE NOTED THAT CLAIMS HAVE BEEN QUOTE STUCK QUOTE ABOVE THREE HUNDRED FIFTY THOUSAND SINCE THE BEGINNING OF THE YEAR AFTER RANGING AROUND THREE HUNDRED THIRTY THOUSAND IN LATE SUMMER THE FOUR WEEK MOVING AVERAGE OF CLAIMS WHICH IS CONSIDERED A BETTER MARKER OF LABOR MARKET CONDITIONS ROSE TO THREE HUNDRED SEVENTY SEVEN THOUSAND TWO HUNDRED FIFTY IN THE LATEST REPORTING WEEK FROM THREE HUNDRED SEVENTY FIVE THOUSAND THE WEEK BEFORE THE FIGURES HAVE BEEN ADJUSTED FOR SEASONAL VARIATIONS ROYAL APPLIANCE MANUFACTURING COMPANY SAID SHAREHOLDER SUITS FILED AGAINST THE COMPANY AND ITS OFFICERS RELATING TO PUBLIC EARNINGS ESTIMATES MADE BY ROYAL WERE DISMISSED BY A FEDERAL COURT ACCORDING TO ROYAL MAKER OF THE DIRT DEVIL LINE OF VACUUM CLEANERS THE LAWSUITS ALLEGED THAT THE COMPANY HAD MADE MISLEADING PUBLIC COMMENTS ABOUT EARNINGS PROJECTIONS FOR NINETEEN NINETY TWO THE U. S. DISTRICT COURT FOR THE NORTHERN DISTRICT OF OHIO DISMISSED THE CASE SAYING THAT ROYAL'S STATEMENTS QUOTE READ IN CONTEXT QUOTE WOULDN'T HAVE MISLED INVESTORS BECAUSE THE COMPANY MADE INVESTORS AWARE OF THE RISKS ROYAL SAID CANADIAN PRIMARY STEEL PRODUCTION TOTALED TWO HUNDRED SIXTY SIX THOUSAND EIGHT HUNDRED FORTY SIX METRIC TONS IN THE WEEK ENDED FEBRUARY FIFTH A THIRTEEN PERCENT INCREASE FROM TWO HUNDRED THIRTY FIVE THOUSAND SIX HUNDRED SIXTEEN TONS THE PREVIOUS WEEK AND A TWO POINT FOUR PERCENT INCREASE FROM TWO HUNDRED SIXTY THOUSAND SIX HUNDRED SEVENTEEN TONS A YEAR EARLIER SAID STATISTICS CANADA A GOVERNMENT AGENCY A METRIC TON IS EQUAL TO ABOUT TWO THOUSAND TWO HUNDRED FOUR POINT SIX TWO POUNDS FOR THE YEAR TO DATE PRIMARY STEEL OUTPUT TOTALED ONE MILLION TWO HUNDRED SIXTY NINE THOUSAND NINE HUNDRED EIGHTY FOUR TONS A SIX POINT TWO PERCENT DECLINE FROM ONE MILLION THREE HUNDRED FIFTY FOUR THOUSAND THREE HUNDRED TWENTY FOUR TONS A YEAR EARLIER ONE YEAR AFTER MOVING TO SHED ITS UNPROFITABLE COMPUTER MANUFACTURING OPERATIONS TANDY CORPORATION IS ON THE REBOUND WITH STRONG FOURTH QUARTER EARNINGS AND PREDICTIONS OF A SURGE IN SALES FOR NINETEEN NINETY FOUR JOHN V. ROACH CHAIRMAN OF THE FORT WORTH TEXAS CONSUMER ELECTRONICS RETAILER SAID IN AN INTERVIEW THAT TANDY EXPECTS TO REPORT FOURTH QUARTER EARNINGS FROM OPERATIONS OF ABOUT ONE DOLLAR AND TWO CENTS A SHARE UP TWENTY ONE PERCENT FROM EIGHTY FOUR CENTS A YEAR EARLIER HE SAID THE FOURTH QUARTER RESULTS ALSO INCLUDED A TWENTY CENT A SHARE GAIN FROM THE COMPLETION OF THE COMPANY'S DIVESTITURE PROGRAM THAT OPERATING EARNINGS ESTIMATE ON THE HIGH SIDE OF ANALYSTS' ESTIMATES CAPS A TURNAROUND YEAR FOR THE PARENT OF THE RADIO SHACK ELECTRONICS CHAIN WHICH SOLD ITS COMPUTER MANUFACTURING BUSINESS TO A. S. T. RESEARCH INCORPORATED LAST YEAR AND HAS SINCE FOCUSED ITS EFFORTS ON ELECTRONICS RETAILING QUOTE TANDY HAS UNDERGONE A METAMORPHOSIS QUOTE SAID ROBERT ROTH AN ANALYST AT MERRILL LYNCH IN NEW YORK THEY REALLY ARE SHAKING UP THE COMPANY IN ADDITION TO SPIFFING UP RADIO SHACK WITH REVAMPED FLOOR PLANS AND A SLEW OF NEW SERVICE OFFERINGS TANDY HAS TAPPED INTO THE BOOM IN HOME PERSONAL COMPUTING THROUGH ITS COMPUTER CITY CHAIN OF HIGH TECH SUPERSTORES A THIRD CHAIN CALLED THE INCREDIBLE UNIVERSE SELLS HOME APPLIANCES AND OTHER ELECTRONICS AND MR. ROACH SAYS HAS BENEFITED FROM A SPURT OF NEW HOME SALES THAT HAS INCREASED DEMAND FOR REFRIGERATORS DISHWASHERS AND OTHER HOME FURNISHINGS MR. ROACH SAID CONTINUING STRONG SHOWINGS AT ALL THREE CHAINS COULD PUSH NINETEEN NINETY FOUR SALES UP THIRTY PERCENT FROM THE FOUR POINT ONE BILLION DOLLARS GENERATED LAST YEAR A FORECAST WELL ABOVE THE NINETEEN PERCENT SALES GAIN PREDICTED BY MOST TANDY WATCHERS MR. ROACH NOTED THAT THE SALES PREDICTIONS INCLUDE A CONTINUING TURNAROUND AT RADIO SHACK WHICH HAS SEEN ITS SAME STORE MONTHLY SALES RECOVER FROM NO YEAR TO YEAR GROWTH THIS TIME LAST YEAR TO ABOUT SEVEN PERCENT TODAY LEONARD ROBERTS RADIO SHACK'S PRESIDENT SAID THE UNIT WILL LAUNCH A NEW GIFT DELIVERY PROGRAM ON FATHER'S DAY AND WILL SOON BEGIN TEST MARKETING A SERVICE OFFERING IN STORE REPAIR OF ELECTRONICS FOR THE YEAR MR. ROACH SAID TANDY EXPECTS TO REPORT EARNINGS FROM OPERATIONS OF ABOUT TWO DOLLARS AND FORTY TWO CENTS A SHARE COMPARED WITH TWO DOLLARS AND FOURTEEN CENTS A SHARE A YEAR EARLIER TANDY'S STOCK WHICH SLIPPED TO AS LOW AS TWENTY FIVE DOLLARS A SHARE THIS TIME LAST YEAR CLOSED IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING AT FORTY FOUR DOLLARS AND FIFTY CENTS A SHARE DOWN SEVENTY FIVE CENTS OR ONE POINT SEVEN PERCENT DENNIS J. LACEY FORTY YEARS OLD WAS NAMED TO THIS INSURANCE COMPANY'S BOARD INCREASING THE TOTAL NUMBER OF DIRECTORS TO EIGHT MR. LACEY IS PRESIDENT AND CHIEF EXECUTIVE OF CAPITAL ASSOCIATES INCORPORATED A COLORADO BASED FINANCIAL SERVICES COMPANY PROGRAM TRADING FOR THE WEEK ENDED FEBRUARY FOURTH ACCOUNTED FOR SEVEN PERCENT OR AN AVERAGE TWENTY THREE POINT FOUR MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL TWELVE POINT TWO 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 FIFTEEN DIFFERENT STOCKS WITH A TOTAL VALUE OF ONE MILLION DOLLARS OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD THIRTY SEVEN POINT FIVE PERCENT INVOLVED STOCK INDEX ARBITRAGE DOWN FROM FORTY POINT ONE PERCENT THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCK INDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME FIFTY FIVE POINT TWO PERCENT OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE FORTY THREE POINT FOUR PERCENT WAS FOR THEIR CUSTOMERS THIS WAS THE SECOND CONSECUTIVE WEEK THAT FIRMS' PRINCIPAL TRADING EXCEEDED FIFTY PERCENT OF OVERALL ACTIVITY AN ADDITIONAL ONE POINT FOUR PERCENT WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOST ACTIVE FIRMS U. B. S. SECURITIES COOPER NEFF NOMURA SECURITIES AND SUSQUEHANNA EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS MORGAN STANLEY EXECUTED MOST OF ITS PROGRAM TRADING FOR ITS CUSTOMERS CONTINENTAL MICRONESIA THE PACIFIC DIVISION OF CONTINENTAL AIRLINES SAID IT REQUESTED U. S. DEPARTMENT OF TRANSPORTATION APPROVAL TO BEGIN DAILY SERVICE BETWEEN THE U. S. AND VIETNAM THE SERVICE WOULD OPERATE FROM GUAM WHERE CONTINENTAL MICRONESIA HAS ITS HUB AND CONTINUE TO VIETNAM'S HO CHI MINH CITY FOUR DAYS A WEEK AND HANOI THREE DAYS A WEEK CONTINENTAL SAID IT COULD FEED TRAFFIC FROM SIXTY FIVE CITIES THROUGH HOUSTON LOS ANGELES NEWARK N. J. HONOLULU AND SAN FRANCISCO TO GUAM AND THEN TO VIETNAM CELLULAR AND WIRELESS DATA NETWORKS STILL HAVE PLENTY OF RAPID GROWTH AHEAD OF THEM BUT TELECOMMUNICATIONS COMPANIES ARE ALREADY BETTING BILLIONS OF DOLLARS ON THE NEXT GENERATION OF WIRELESS TECHNOLOGY PERSONAL COMMUNICATIONS SERVICES AND SATELLITE NETWORKS THE NEW TECHNOLOGIES EXPECTED TO BECOME AVAILABLE IN NINETEEN NINETY SIX OR BEYOND SHOULD COMPETE WITH THE ARDIS AND RAM MOBILE NETWORKS IN TRANSMITTING DATA AND WITH DIGITAL FORMS OF CELLULAR PHONES IN SENDING BOTH VOICE AND DATA RELIABLY BUT BEFORE THEY CAN GET TO THAT POINT THEIR BACKERS MUST MEET SEVERAL BIG CHALLENGES INCLUDING FUNDING AND BUILDING MULTIBILLION DOLLAR SYSTEMS AND OVERCOMING COMPETITION FROM EXISTING NETWORKS ESPECIALLY CELLULAR COMPANIES MOREOVER BECAUSE THE POTENTIAL PAYOFF LOOKS SO ALLURING SO MANY COMPANIES WANT IN THAT A SHAKEOUT APPEARS INEVITABLE THIS SPRING THE FEDERAL COMMUNICATIONS COMMISSION WILL AUCTION FREQUENCIES FOR PERSONAL COMMUNICATIONS SERVICES OR P. C. S. TO THE REGIONAL BELL PHONE COMPANIES LONG DISTANCE CARRIERS AND A HOST OF OTHER TELECOMMUNICATIONS COMPANIES ANALYSTS SAY THE BIDDING COULD YIELD TEN BILLION DOLLARS AND THE F. C. C. IS EXPECTED TO AUCTION LICENSES LATER IN THE YEAR FOR SATELLITE BASED PHONE SERVICES WHICH ARE MAINLY BEING SOUGHT BY A DOZEN LARGE COMPANIES HERE'S A LOOK AT THE TWO TECHNOLOGIES' WORKINGS AND PROSPECTS P. C. S. DEVELOPERS ARE IN EFFECT REINVENTING CELLULAR THE TECHNOLOGY IS EXPECTED TO BOUNCE SIGNALS BETWEEN TRANSMISSION QUOTE MICROCELLS QUOTE SIMILAR TO THE CELLS USED BY CONVENTIONAL CELLULAR OPERATORS ONLY SMALLER AND MORE CLOSELY SPACED IN SOME CASES JUST A FEW HUNDRED FEET APART THE TECHNOLOGY'S PROPONENTS SAY THIS WILL ENABLE P. C. S. PHONES TO BE SMALLER AND LESS EXPENSIVE THAN CELLULAR PHONES SINCE THEY WON'T HAVE TO BE AS POWERFUL POCKET PHONES THAT CAN BE USED ANYWHERE ANOTHER DIFFERENCE P. C. S. SYSTEMS WILL OPERATE AT HIGHER FREQUENCIES WHERE THE SPECTRUM ISN'T SO CROWDED THE F. C. C. AWARDED THE TECHNOLOGY A WIDER SLICE OF FREQUENCIES THAN CELLULAR MORE SPECTRUM SHOULD ALLOW PROVIDERS TO OFFER A WIDER RANGE OF SERVICES EVENTUALLY INCLUDING VIDEO AND MULTIMEDIA P. C. S. ALSO WILL BE ALL DIGITAL FROM THE OUTSET DESIGNED FOR SENDING DATA INCLUDING FAXES AS WELL AS VOICE THAT WILL MAKE IT SUITABLE FOR USE WITH PERSONAL DIGITAL ASSISTANTS OR P. D. A.S THE SMALL ORGANIZERS SLASH COMMUNICATORS THAT HAVE BEGUN APPEARING ON THE MARKET BUT THE CELLULAR INDUSTRY AND SOME ANALYSTS ARGUE THAT BY THE TIME P. C. S. BECOMES WIDELY AVAILABLE IN THREE TO FIVE YEARS THE DIFFERENCES BETWEEN THE TWO TECHNOLOGIES WILL NARROW CONSIDERABLY CELLULAR COMPANIES NOW USE ANALOG EQUIPMENT BUT THEY ARE STARTING TO INSTALL DIGITAL GEAR FOR BOTH VOICE AND DATA TRANSMISSION THAT WILL INCREASE THEIR SYSTEMS' RELIABILITY AND CAPACITY AND CONTINUED SHRINKING OF SIZE AND COST COULD ENABLE CELLULAR PHONES TO RIVAL P. C. S. PHONES THESE TRENDS WILL MEAN THERE'S ABSOLUTELY NOTHING THAT CAN BE DONE ON P. C. S. THAT CAN'T BE DONE ON DIGITAL CELLULAR SAYS JOHN STUPKA CHAIRMAN AND CHIEF EXECUTIVE OF SOUTHWESTERN BELL MOBILE SYSTEMS THE CELLULAR UNIT OF SOUTHWESTERN BELL CORPORATION P. C. S. IS JUST MORE CELLULAR EVEN SO SOUTHWESTERN BELL AND MANY OTHER COMPANIES THAT PROVIDE CELLULAR SERVICE DON'T WANT TO BE LOCKED OUT OF THE NEW TECHNOLOGY THEY PLAN TO BID FOR P. C. S. LICENSES AND COMPANIES THAT MISSED OUT ON CELLULAR ARE PREPARING FOR THE P. C. S. AUCTION M. C. I. COMMUNICATIONS CORPORATION HAS TOLD ANALYSTS IT MAY SPEND MORE THAN TWO BILLION DOLLARS ON LICENSES BUT M. C. I. AND OTHER BIG P. C. S. PROPONENTS WHICH HAD ASKED THE F. C. C. TO AUCTION SEVERAL NATIONAL P. C. S. LICENSES PROVIDING A WIDE REACH SUFFERED A SETBACK WHEN THE AGENCY DECIDED TO AWARD LICENSES REGIONALLY THAT MEANS M. C. I. MUST TAKE TIME AND MONEY TO STITCH TOGETHER A CONSORTIUM OF REGIONAL LICENSE HOLDERS AFTER COMPANIES WIN LICENSES THEY MUST CLEAR SEVERAL OTHER HURDLES ONE IS COST M. C. I. ESTIMATES THAT ITS PLAN TO DEPLOY A P. C. S. SYSTEM REACHING NINETY PERCENT OF THE U. S. POPULATION INVOLVING THE CONSTRUCTION OF THOUSANDS OF MICROCELLS AND THE INSTALLATION OF SWITCHING EQUIPMENT WILL COST A TOTAL OF TEN BILLION DOLLARS OVER TEN YEARS PERHAPS THE HIGHEST HURDLE FOR P. C. S. OPERATORS WILL BE TAKING ON THE CELLULAR INDUSTRY WHICH HAS A TEN YEAR HEAD START AND MORE THAN THIRTEEN MILLION SUBSCRIBERS BY THE TIME P. C. S. COMES OUT CELLULAR WILL HAVE THREE TO FOUR MORE YEARS TO DEVELOP AND WILL BE EVERYWHERE IN THE CAR IN THE BUILDING IN HOMES SAYS SOUTHWESTERN BELL'S MR. STUPKA SOME CELLULAR COMPANIES ARE ALREADY STEPPING UP THEIR MARKETING TO ATTRACT MORE SUBSCRIBERS BEFORE P. C. S. BECOMES AVAILABLE SOUTHWESTERN BELL FOR INSTANCE RECENTLY DROPPED ITS QUOTE ROAMING QUOTE CHARGE OF THREE DOLLARS FOR EACH CALL A CUSTOMER MAKES OUTSIDE ITS SERVICE AREA P. C. S. OPERATORS ALSO FACE COMPETITION FROM COMPANIES THAT PROVIDE SPECIALIZED MOBILE RADIO SERVICE OR S. M. R. THE SERVICE WAS LONG USED FOR CLUNKY TWO WAY COMMUNICATIONS IN SUCH AREAS AS TAXI DISPATCHING BUT AN EASING OF FEDERAL RULES WILL ALLOW NEXTEL COMMUNICATIONS INCORPORATED CENCALL COMMUNICATIONS INCORPORATED DIAL PAGE INCORPORATED AND OTHERS TO OFFER VOICE AND DATA SERVICES ON THEIR S. M. R. FREQUENCIES THROUGH THEIR OWN VERSIONS OF WIRELESS PHONES AND THEN THERE WILL BE THE CROWDING AND FRAGMENTATION WITHIN THE P. C. S. MARKET ITSELF THE F. C. C. WILL SELL AS MANY AS SEVEN P. C. S. SLOTS IN EACH CITY BUT BARRY GOODSTADT A CONSULTANT AT ARTHUR D. LITTLE IN CAMBRIDGE MASSACHUSETTS SAYS MOST CITIES WILL BE ABLE TO SUPPORT ONLY TWO SERVICE PROVIDERS IN ADDITION TO THE TWO INCUMBENT CELLULAR COMPANIES THE RESULT ANALYSTS SAY MANY P. C. S. COMPANIES WILL BE FORCED OUT OF BUSINESS BEFORE THE INDUSTRY SETTLES DOWN WHILE P. C. S. OPERATORS PREPARE FOR THEIR TERRESTRIAL TUSSLE OTHER WIRELESS CONTENDERS PLAN TO CONQUER THE SKIES COMMUNICATIONS SATELLITE CORPORATION MOTOROLA INCORPORATED T. R. W. INCORPORATED AND SEVERAL OTHER COMPANIES ARE PREPARING TO PROVIDE WIRELESS PHONE DATA AND FAX SERVICE BY BOUNCING SIGNALS OFF ORBITING SATELLITES THEIR SYSTEMS WILL LINK PHONES COMPUTERS AND PAGERS ALMOST ANYWHERE ON EARTH BUT UNLIKE CELLULAR AND P. C. S. SERVICES WHICH WILL BE PITCHED INCREASINGLY AS REPLACEMENTS FOR CONVENTIONAL PHONES THE SKY PHONES WILL BE TARGETED TO NICHE MARKETS MAINLY GLOBE TROTTING EXECUTIVES SOME SKEPTICS ARGUE THAT SATELLITE PHONES WILL HAVE TROUBLE ATTRACTING CUSTOMERS BECAUSE THEY WILL BE MUCH MORE COSTLY THAN CELLULAR SERVICE WHILE OFFERING ONLY SLIGHTLY BROADER REACH THE SKY PHONES' BACKERS HOWEVER ARGUE THAT BECAUSE OF VARYING TECHNOLOGICAL STANDARDS A CUSTOMER WON'T BE ABLE TO USE HIS CELLULAR PHONE IN PARIS AS WELL AS NEW YORK SO THEY SAY SATELLITE PHONES WILL BE USED BY INTERNATIONAL BUSINESS TRAVELERS WHOSE COMPANIES ARE WILLING TO PAY FOR ANYWHERE ANYTIME PHONE SERVICE SATELLITE PHONES WILL ALSO BE MARKETED FOR USE BY RESIDENTS AND TRAVELERS IN RURAL AREAS THAT LACK CELLULAR SERVICE AND IN DEVELOPING COUNTRIES WHERE PHONE SERVICE OF ANY KIND IS LIMITED AS WITH P. C. S. THE COST OF INFRASTRUCTURE WILL BE ENORMOUS YOU HAVE TO SPEND YEARS BUILDING THE SYSTEM WITHOUT GETTING A DOLLAR OF REVENUE SAYS RON MARIO PRESIDENT OF COMSAT MOBILE COMMUNICATIONS YOU HAVE TO STICK YOUR MONEY INTO FIRECRACKERS LAUNCH THEM AND HOPE IT ALL GOES RIGHT COMSAT OWNS ABOUT TWENTY FIVE PERCENT OF THE INTERNATIONAL MARITIME SATELLITE ORGANIZATION OR INMARSAT A SEVENTY ONE NATION GROUP FORMED TO PROVIDE RADIO COMMUNICATION AND LOCATION SERVICES TO SHIPS AT SEA INMARSAT IS EXPECTED TO DECIDE SOON ON THE PARAMETERS OF A SATELLITE SYSTEM IT WILL CREATE AT A COST OF ONE BILLION DOLLARS TO TWO BILLION DOLLARS TO PROVIDE PHONE SERVICE ON HAND HELD UNITS COMSAT AND MOTOROLA HAVE THE MAKINGS OF A NASTY FEUD MOTOROLA OWNS THIRTY FOUR PERCENT OF IRIDIUM INCORPORATED AN INTERNATIONAL CONSORTIUM THAT IS BUILDING A THREE POINT THREE SEVEN BILLION DOLLAR SATELLITE PHONE PROJECT MOTOROLA HAS ASKED REGULATORS TO BLOCK THE INMARSAT PROJECT ARGUING THAT COMSAT AS A QUASI GOVERNMENTAL CONCERN HAS UNFAIR TAX AND LEGAL ADVANTAGES COMSAT'S MR. MARIO RESPONDS ALL MOTOROLA IS TRYING TO DO IS KEEP US OUT OF THE MARKET THE TAX ISSUE IS A JOKE THE TWO COMPANIES HAVE OUTLINED SHARPLY DIFFERENT SYSTEMS MOTOROLA PLANS A NETWORK OF SIXTY SIX SATELLITES THAT WILL CARRY VOICE AND DATA SIGNALS TO AND FROM HANDHELD PHONES COMSAT HOWEVER WILL PROBABLY RELY ON MANY FEWER SATELLITES USING GROUND STATIONS TO FIND THEM MOTOROLA SAYS ITS SYSTEM WILL PROVIDE FASTER AND CLEARER RECEPTION COMSAT ARGUES THAT ITS COSTS WILL BE LOWER INDEED MOTOROLA'S EXPECTED CUSTOMER CHARGES AREN'T FOR THE FAINT OF HEART THE COMPANY PLANS TO SELL ITS SATELLITE PHONES INITIALLY FOR ABOUT THREE THOUSAND DOLLARS WHILE CALLS WILL COST ABOUT THREE DOLLARS A MINUTE MR. NAIK IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU THE SMALL COMPANY STOCK RALLY RAN OUT OF STEAM DRAGGED DOWN BY FALLING BIG BOARD ISSUES AND A DROP IN THE PRICE OF THE BELLWETHER TREASURY BOND SMALL CAPITALIZATION ISSUES SAGGED AFTER OPENING HIGHER THE PACE OF THE DECLINE SLOWED AT MIDDAY BUT PRICES WERE UNABLE TO REBOUND SIGNIFICANTLY KEY SMALL COMPANY INDEXES FINISHED THE DAY JUST OFF THEIR SESSION LOWS TRADERS SAID THE MARKET WAS HURT BY COMMENTS BY ELAINE GARZARELLI LEHMAN BROTHERS' DIRECTOR OF SECTOR ANALYSIS WHO REPEATED HER VIEW ON CABLE T. V. NETWORK C. N. B. C. THAT A FOUR PERCENT TO SEVEN PERCENT MARKET CORRECTION IS POSSIBLE ALTHOUGH SEVERAL TRADERS NOTED MS. GARZARELLI ORIGINALLY MADE THE COMMENTS LAST FRIDAY QUOTE THE MARKET DIDN'T START TO GET NERVOUS QUOTE UNTIL HER C. N. B. C. APPEARANCE SAID JACK BAYER HEAD OF OVER THE COUNTER TRADING AT OPPENHEIMER AND COMPANY TRADERS SAID INVESTORS ALSO BECAME JITTERY ON NEWS THAT THE FLOW OF MONEY INTO STOCK MUTUAL FUNDS REVERSED ITSELF FOLLOWING FRIDAY'S SELL OFF SPARKED BY THE FEDERAL RESERVE'S TIGHTENING OF MONETARY POLICY THE RUSSELL TWO THOUSAND INDEX WHICH TRACKS SMALL CAP STOCKS FELL ONE POINT OH EIGHT OR ZERO POINT FOUR PERCENT TO TWO HUNDRED SIXTY FOUR POINT ONE FOUR THE NASDAQ COMPOSITE INDEX LOST THREE POINT ONE ONE OR ZERO POINT FOUR ZERO PERCENT TO SEVEN HUNDRED EIGHTY THREE POINT FOUR TWO ON THE NASDAQ STOCK MARKET DECLINERS LED ADVANCERS ONE THOUSAND SIX HUNDRED SIXTY SEVEN TO ONE THOUSAND FOUR HUNDRED EIGHT ON TOTAL VOLUME OF THREE HUNDRED THIRTY NINE MILLION SHARES UP FROM THREE HUNDRED THIRTY MILLION SHARES WEDNESDAY NATIONAL MARKET VOLUME WAS TWO HUNDRED EIGHTY FOUR MILLION SHARES UP FROM TWO HUNDRED SEVENTY EIGHT MILLION SHARES WEDNESDAY HARVARD INTERNATIONAL TECHNOLOGIES A VANCOUVER BRITISH COLUMBIA MAKER OF FRENCH FRIED POTATO VENDING MACHINES PLUNGED THREE AND THREE EIGHTHS OR FIFTY SIX PERCENT TO TWO AND FIVE EIGHTHS THE AMEX TRADED COMPANY SAID CERTAIN QUALITY PROBLEMS WERE DISCOVERED IN MANY OF ITS MACHINES AS A RESULT SOME FRANCHISEES HAVE DELAYED PAYMENTS TO THE COMPANY THE PAYMENT DELAYS MIGHT FORCE THE COMPANY TO SECURE NEW FINANCING BY MIDMARCH HARVARD SAID PIER ONE IMPORTS FELL THREE QUARTERS OR SEVEN POINT NINE PERCENT TO EIGHT AND THREE QUARTERS IN BIG BOARD TRADING AFTER THE COMPANY SAID EARNINGS FOR FISCAL NINETEEN NINETY FOUR ENDING FEBRUARY TWENTY SIXTH COULD BE TEN PERCENT TO FIFTEEN PERCENT BELOW ANALYSTS' ESTIMATES THE FORT WORTH TEXAS RETAILER SAID JANUARY PROFITS WERE HURT IN MORE THAN SIXTY PERCENT OF THE COMPANY'S SIX HUNDRED THIRTY NINE STORES BY SEVERE WEATHER AND THAT THE PATTERN HAS CONTINUED THIS MONTH THE COMPANY ALSO SAID TWENTY OF ITS CALIFORNIA STORES WERE AFFECTED BY THE JANUARY SEVENTEENTH EARTHQUAKE NEWS THAT DIME FINANCIAL WILL SUBSTANTIALLY BOOST RESERVES FOR LOAN LOSSES AND REAL ESTATE AND AS A RESULT RECORD A SUBSTANTIAL LOSS FOR THE FOURTH QUARTER AND YEAR PUSHED ITS STOCK DOWN SEVEN EIGHTHS OR TWELVE PERCENT TO SIX AND FIVE EIGHTHS THE WALLINGFORD CONNECTICUT COMPANY SAID IT EXPECTS TO REPORT A FOURTH QUARTER LOSS OF ABOUT FIVE DOLLARS AND TWENTY CENTS A SHARE COMPARED WITH NET INCOME OF NINE CENTS A YEAR EARLIER N. L. INDUSTRIES A N. Y. S. E. TRADED HOUSTON SPECIALTY CHEMICAL COMPANY FELL ONE OR TEN PERCENT TO EIGHT AND FIVE EIGHTHS AFTER REPORTING A FOURTH QUARTER LOSS OF FORTY FOUR CENTS A SHARE COMPARED WITH A THIRTY FOUR CENTS LOSS IN THE YEAR EARLIER PERIOD LIBERTY TECHNOLOGIES A DIAGNOSTIC SYSTEMS COMPANY BASED IN CONSHOHOCKEN PENNSYLVANIA FELL ONE OR ELEVEN PERCENT TO EIGHT AFTER IT POSTED FOURTH QUARTER EARNINGS OF TWELVE CENTS A SHARE DOWN FROM FIFTEEN CENTS A YEAR EARLIER BRODERBUND SOFTWARE ROSE FOUR AND FIVE EIGHTHS OR ELEVEN PERCENT TO FORTY FIVE AND SEVEN EIGHTHS ON NEWS THAT ELECTRONIC ARTS WILL ACQUIRE THE NOVATO CALIFORNIA SOFTWARE COMPANY THE BUYOUT WILL INVOLVE A STOCK SWAP VALUED AT FOUR HUNDRED MILLION DOLLARS SINCE SMALL COMPANY STOCKS BEGAN RALLYING IN LATE DECEMBER ONE OF THE HALLMARKS OF THE MARKET HAS BEEN INVESTORS' FOCUS ON COMPANY FUNDAMENTALS RATHER THAN ON BROAD INDUSTRY OR MARKET TRENDS EVEN AFTER FRIDAY'S SELL OFF SMALL COMPANY STOCKS WERE ABLE TO REBOUND SMARTLY DRIVEN BY STRONG EARNINGS REPORTS AND OPTIMISM ABOUT THE ECONOMY JERRY MULLINS DEAN WITTER REYNOLDS' HEAD OF O. T. C. TRADING SAID THAT EVEN THOUGH THERE WERE BROAD BASED LOSSES AMONG SMALL CAP STOCKS AND MANY ISSUES ENDED THE DAY NEAR THEIR LOWS HE SEES UNDERLYING STRENGTH IN THE SMALL COMPANY SECTOR A LOT OF STOCKS WERE NOT COMING IN FOR SALE MR. MULLINS SAID HE SAID THE PACE OF SELLING DIDN'T PICK UP MOMENTUM AS THE DAY WENT ON IF PEOPLE WERE CONVINCED THE MARKET WAS GOING LOWER THERE WOULD HAVE BEEN MORE SELLERS HE SAID ANNTAYLOR STORES CORPORATION PLANS TO ESTABLISH A NEW NATIONAL DISTRIBUTION CENTER IN LOUISVILLE KENTUCKY AND CLOSE ITS EXISTING CENTER IN NEW HAVEN CONNECTICUT IN NINETEEN NINETY FIVE CORNING INCORPORATED AND VITRO S. A. OF MEXICO COMPLETED A PLAN TO END THEIR CROSS OWNERSHIP IN TWO CONSUMER PRODUCT COMPANIES CORNING VITRO CORPORATION IN THE U. S. AND VITRO CORNING S. A. IN MEXICO THE TWO COMPANIES NOW OWN ONE HUNDRED PERCENT OF THEIR RESPECTIVE CONSUMER PRODUCTS BUSINESSES ACX TECHNOLOGIES INCORPORATED AGREED TO ACQUIRE GRAVURE INTERNATIONAL CAPITAL CORPORATION OF CANADA FOR ABOUT THIRTY FOUR MILLION DOLLARS IN CASH AND STOCK IT WILL ALSO ASSUME CERTAIN DEBT OF GRAVURE BRINGING THE VALUE OF THE TRANSACTION TO SIXTY EIGHT MILLION DOLLARS C. R. I. LIQUIDATING R. E. I. T. INCORPORATED SOLD ABOUT TWENTY PERCENT OF ITS MULTI FAMILY MORTGAGE PORTFOLIO LAST WEEK FOR FORTY EIGHT POINT SEVEN MILLION DOLLARS ARROW ELECTRONICS INCORPORATED AGREED TO ACQUIRE TH S. ELEKTRONIK A. B. STOCKHOLM AND ITS UNITS TERMS WEREN'T DISCLOSED JUST WEEKS AFTER RECEIVING A STATE HANDOUT OF NEARLY ONE HUNDRED SEVENTY MILLION DOLLARS A MONEY LOSING FRENCH CREDIT INSTITUTE IS AGGRESSIVELY UNDERCUTTING ITS BIGGER PRIVATE SECTOR RIVALS IN THE LENDING MARKETPLACE AS THE GOVERNMENT IS PREPARING A MUCH LARGER AID PACKAGE FOR CREDIT LYONNAIS THE NATION'S BIGGEST BANK ANGRY RIVALS ARE POINTING TO THIS SMALLER CASE AS AN EXAMPLE OF THE PERNICIOUS EFFECTS OF FRENCH STATE MEDDLING IN BUSINESS BY WRITING BIG CHECKS FOR STRUGGLING STATE OWNED COMPANIES CRITICS SAY THE GOVERNMENT OF PRIME MINISTER EDOUARD BALLADUR IS DISTORTING FAIR COMPETITION AND REWARDING BAD MANAGEMENT AT THE EXPENSE OF THE PRIVATE SECTOR QUOTE IT'S UNTENABLE FOR THOSE WHO MANAGE THEIR BANKS WELL QUOTE GRIPES A TOP EXECUTIVE AT ONE OF FRANCE'S LARGEST PRIVATE SECTOR BANKS ADDS AN OFFICIAL AT ANOTHER BANK TAXPAYERS' MONEY IS BEING USED TO DISTORT THE MARKET ECONOMICS MINISTER EDMOND ALPHANDERY ANNOUNCED IN LATE DECEMBER THAT THE GOVERNMENT WOULD INJECT ONE BILLION FRANCS ONE HUNDRED SIXTY SEVEN POINT SIX MILLION DOLLARS IN NEW CAPITAL INTO CREDIT D'EQUIPEMENT DES PETITES ET MOYENNES ENTREPRISES A STATE OWNED LENDING INSTITUTION KNOWN AS CEPME THE INSTITUTION ISN'T TECHNICALLY A BANK BECAUSE IT DOESN'T TAKE DEPOSITS BUT IT DOES COMPETE WITH BANKS ON LONG TERM LOANS ESPECIALLY TO SMALL AND MEDIUM SIZED COMPANIES AND CLAIMS TO HOLD FIFTEEN PERCENT TO TWENTY PERCENT OF THAT MARKET THE STATE BAILOUT CAME AT THE END OF THE WORST YEAR IN CEPME'S TWELVE YEAR HISTORY AFTER MAKING HEAVY PROVISIONS FOR SOURED LOANS IT IS EXPECTED TO REPORT A NET LOSS FOR NINETEEN NINETY THREE OF BETWEEN SEVEN HUNDRED MILLION AND EIGHT HUNDRED MILLION FRANCS FOLLOWING AN OPERATING LOSS OF TWO HUNDRED MILLION FRANCS IN NINETEEN NINETY TWO BUT BOOSTED BY THE CAPITAL INJECTION CEPME QUICKLY EMBARKED ON A NEW ROUND OF AGGRESSIVE LENDING OFFERING CLIENTS RATES ON LOANS THAT ARE AS MUCH AS FIFTY BASIS POINTS OR HALF OF A PERCENTAGE POINT BELOW THE MARKET AVERAGE A CEPME SPOKESMAN PHILIPPE ADAMI SAYS THE BANK IS OFFERING RATES AS LOW AS SIX POINT NINE PERCENT COMPARED WITH THE MINIMUM OF SEVEN POINT THREE FIVE PERCENT BEING CHARGED BY ITS RIVALS HE DEFENDS THE CAPITAL INJECTION SAYING IT WAS NEEDED TO RAISE THE INSTITUTION'S CAPITAL RATIO TO WELL ABOVE THE LEVEL REQUIRED UNDER BANKING REGULATIONS AND ALLOWS US TO DEVELOP OUR ACTIVITY AND HELP THE COUNTRY'S ECONOMIC RECOVERY THE EFFECT HAS BEEN QUICKLY FELT BY MAINSTREAM BANKS OFFICIALS SAY THEIR LENDING OFFICERS AROUND THE NATION HAVE BEEN COMPLAINING BITTERLY ABOUT THE DANGERS OF LOSING CREDIT BUSINESS WHICH IS ALREADY LACKLUSTER BECAUSE OF FRANCE'S RECESSION TO CEPME IN A FREE MARKET OTHER BANKS COULD THEORETICALLY RESPOND TO THE CHALLENGE BY LOWERING THEIR OWN RATES BUT IN FRANCE PRIVATE SECTOR BANKS ARE HOBBLED BY NUMEROUS RESTRICTIONS FOR EXAMPLE THEY ARE REQUIRED TO PAY FIXED RATES FOR SAVINGS DEPOSITS KEPT IN WHAT ARE KNOWN AS LIVRET A ACCOUNTS ALTHOUGH MARKET INTEREST RATES HAVE BEEN FALLING SHARPLY IN RECENT MONTHS THE GOVERNMENT HAS REFUSED TO CUT RATES ON THESE TRADITIONAL SAVINGS ACCOUNTS FEARING SUCH A MOVE WOULD HURT ITS POPULARITY PRIVATE SECTOR BANKERS HERE BELLOW ABOUT THE PROBLEMS OF COMPETING ON THIS UNLEVEL PLAYING FIELD JUST AS SOME U. S. BANKS GRIPED ABOUT THE DISTORTING EFFECT OF WASHINGTON'S RESCUE OF SOME SAVINGS AND LOAN INSTITUTIONS CEPME IS ONE OF SEVERAL FRENCH STATE OWNED FINANCIAL ENTITIES INCLUDING THE NATIONAL POST OFFICE THAT COMPETE WITH BANKS IN SOME AREAS BUT ARE GOVERNED BY DIFFERENT RULES IT'S AS IF WE HAVE A GROUP OF PEOPLE PLAYING CANASTA WHILE OTHERS ARE PLAYING BRIDGE AT THE SAME CLUB SAYS BAUDOUIN PROT EXECUTIVE SENIOR VICE PRESIDENT AT FRANCE'S RECENTLY PRIVATIZED BANQUE NATIONALE DE PARIS SUCH COMPLAINTS ARE GROWING AS THE GOVERNMENT CONSIDERS A RECAPITALIZATION PLAN FOR CREDIT LYONNAIS WHICH HAS PLUNGED INTO THE RED FOLLOWING AN AGGRESSIVE CRITICS SAY RECKLESS INTERNATIONAL EXPANSION STRATEGY THE CHAIRMEN OF B. N. P. AND SOCIETE GENERALE HAVE PUBLICLY COMPLAINED ABOUT THE PROSPECT OF THE GOVERNMENT PICKING UP THE BILL FOR THE MISTAKES MADE BY THEIR STATE OWNED RIVAL BUT GOVERNMENT MEDDLING IN BUSINESS IS A LONGSTANDING TRADITION IN FRANCE AND ONE THAT MR. BALLADUR SHOWS FEW SIGNS OF WANTING TO END ALTHOUGH HE HAS RECEIVED PLAUDITS FOR LAUNCHING A BIG PRIVATIZATION CAMPAIGN HIS CONSERVATIVE GOVERNMENT CONTINUES TO PLAY A BIG ROLE IN CORPORATE AFFAIRS AMONG OTHER THINGS MR. BALLADUR HAS BEEN TWISTING THE ARMS OF MAJOR COMPANIES NOT TO LAY OFF WORKERS DURING THE CURRENT RECESSION SUCH GOVERNMENT MICROMANAGEMENT OFTEN INFURIATES EMPLOYERS WHO SAY PIECEMEAL TINKERING WITH THE ECONOMY IS NO SUBSTITUTE FOR ACTION TO ADDRESS DEEPER PROBLEMS PARTICULARLY THE RISING COST OF MAINTAINING THE WELFARE SYSTEM THE REAL QUESTION IS HOW LONG CAN WE KEEP GOING WITHOUT TACKLING FUNDAMENTAL REFORMS SAYS FRANCOIS PERIGOT PRESIDENT OF THE NATIONAL EMPLOYERS' ASSOCIATION WELCOME TO THE BAZAAR THE LEGAL MARKETPLACE USED TO FUNCTION LIKE A GROCERY STORE WHERE ALL SHOPPERS PAID THE SAME PRICE NOW IT'S BEGINNING TO RESEMBLE A STREET FAIR WHERE SAVVY CUSTOMERS HAGGLE FOR GOOD DEALS AND RUBES ARE ROOKED MANY COMPANIES HAVE LEARNED THAT ATTORNEYS WILL NEGOTIATE FOR VOLUME DISCOUNTS AND OTHER CONCESSIONS BUT OTHER CLIENTS HAVEN'T CAUGHT ON AND INEQUITIES ARE DEVELOPING THE TOUGHER MORE VIGILANT CLIENTS ARE FREQUENTLY PAYING LESS FOR THE SAME LAWYERS MOREOVER PASSIVE CLIENTS MAY NOT JUST BE MISSING OUT ON THE BENEFIT OF THE BARGAIN IN SOME CIRCUMSTANCES THEY MAY BE UNKNOWINGLY UNDERWRITING THE SWEETHEART DEALS GIVEN TO OTHERS JOHN MARQUESS A PHILADELPHIA BASED AUDITOR OF LEGAL BILLS REPORTS THAT SEVERAL COMPANIES APPROACHED HIM DURING PAST FEW MONTHS CONCERNED THAT THEY WERE BEING SELECTIVELY OVERCHARGED BY ATTORNEYS WHO PERCEIVED THEM TO BE ASLEEP AT THE SWITCH HE SAYS AUDITS BY HIS COMPANY LEGALGARD TURNED UP EXAMPLES OF LAW FIRMS' PASSING COSTS CHALLENGED BY ONE CLIENT ON TO ANOTHER CLIENT QUOTE COST SHIFTING IS ALL OVER THE PLACE QUOTE MR. MARQUESS MAINTAINS I'M NOT SAYING THAT LAW FIRMS HAVE MEETINGS AND TELL THEIR PEOPLE TO SHIFT COSTS I DON'T THINK ANYBODY'S THAT BLATANT HE ADDS BUT THERE ARE SUBTLE WAYS THE MESSAGE GETS COMMUNICATED HE CITES THE EXAMPLE OF A TOP PARTNER WHO REMINDS FELLOW LAWYERS AT A STAFF MEETING THAT HALF THE FIRM'S TOP TWENTY CLIENTS HAVE ISSUED STRICT GUIDELINES ON LEGAL BILLS WHAT'S REALLY BEING SAID IS THAT THE REMAINING TEN DON'T HAVE A LOT OF CONTROLS AND COSTS COULD BE SHIFTED TO THEM MR. MARQUESS SAYS THE ADJUSTMENTS OCCUR NOT ONLY ON TIME SHEETS BUT ALSO ON EXPENSE FORMS AND IN DECISIONS ON HOW HEAVILY TO STAFF A CASE IN A RECENT AUDIT OF LEGAL BILLS TO A LOS ANGELES HEALTH CARE COMPANY THAT HADN'T CLOSELY MONITORED ITS MAJOR OUTSIDE LAW FIRM LEGALGARD FOUND THREE INSTANCES OF INDIVIDUAL LAWYERS BILLING MORE THAN FIFTY HOURS A DAY ITS PREVIOUS AUDIT OF THE SAME ATTORNEYS FOR A COMPANY THAT HAD A REPUTATION OF BEING MORE VIGILANT TURNED UP NO SUCH PROBLEMS IN AUDITS FOR TWO COMPANIES IN FLORIDA LEGALGARD DETERMINED THAT A MIDSIZED LAW FIRM CHARGED ONE CLIENT TEN CENTS A PAGE FOR PHOTOCOPYING AFTER A HIGHER RATE HAD BEEN CHALLENGED WHILE CHARGING A LESS CONFRONTATIONAL CLIENT FIFTY CENTS A PAGE IN SACRAMENTO THE AUDITOR FOUND THAT A MIDSIZED LAW FIRM HANDLING DOG BITE LIABILITY CASES FOR SEVERAL SECURITY COMPANIES ASSIGNED TWICE AS MANY LAWYERS AS USUAL TO CASES INVOLVING CLIENTS WHO TYPICALLY DIDN'T WATCH BILLS CLOSELY AMONG THE MOST COMMON IF FAIRLY INNOCUOUS COST SHIFTING TECHNIQUES IS TAKING A TAXI RIDE HOME AFTER WORKING LATE ON A VARIETY OF MATTERS AND THEN CHARGING THE MOST EASY GOING CLIENT FOR THE WHOLE RIDE SOME LAWYERS WHO HAVE DONE THIS SAY IT'S NOT EASY FOR AUDITORS MUCH LESS CLIENTS TO CATCH THE COST SHIFTERS FEW AUDITORS OR CLIENT COMPANIES ARE EVER IN A POSITION TO COMPARE BILLS FOR SIMILAR WORK FROM THE SAME FIRM THE BEST THAT CLIENTS CAN DO IS BE TOUGH SO AT LEAST YOU'LL KNOW THAT COSTS AREN'T BEING SHIFTED TO YOU SAYS JOHN TOOTHMAN CHAIRMAN OF THE DEVIL'S ADVOCATE AN ALEXANDRIA VIRGINIA LITIGATION CONSULTING FIRM COMPANIES SHOULD BE ESPECIALLY VIGILANT IF THEY FIT MR. TOOTHMAN'S PROFILE OF A QUOTE SOAKER CLIENT QUOTE ONE LIKELY TO BE USED TO ABSORB THE COST OF DISCOUNTS OFFERED TO OTHERS THE CLASSIC CANDIDATE A COMPANY THAT'S HANDED A FIRM A BIG PIECE OF LITIGATION UPON WHICH THE COMPANY'S FUTURE DEPENDS LARGE MATTERS ARE TOUGHER FOR CLIENTS TO TRACK CAREFULLY LITIGATION TENDS TO BE LESS FAMILIAR TO COMPANIES THAN TRANSACTIONAL WORK AND LAWYERS CAN SMELL THE FEAR OF A DESPERATE CLIENT MR. TOOTHMAN SAYS TO BE SURE CLAIMS OF COST SHIFTING MAY BE OVERSTATED JONATHAN BELLIS PARTNER IN CHARGE OF THE LAW OFFICE CONSULTING GROUP AT PRICE WATERHOUSE SAYS LEGAL BILL AUDITORS MAY BE TEMPTED TO RAISE CLIENTS' FEARS ABOUT COST SHIFTING FOR SELF SERVING REASONS BUT INTERVIEWS WITH PARTNERS AND ASSOCIATES AT LAW FIRMS ACROSS THE COUNTRY SUGGEST THAT ATTORNEYS AT ALL LEVELS ARE AWARE OF THE PHENOMENON WE'RE TOLD WHICH CLIENTS HAVE GIVEN US A BILLING CAP AND WHICH HAVEN'T SAYS A YOUNG LOS ANGELES LAWYER AND AFTER A WHILE YOU SORT OF GET A SENSE WHICH CLIENTS YOU CAN BILL MORE FREELY ALFRED J. T. BYRNE A PARTNER AT THE WASHINGTON LAW FIRM PATTON BOGGS AND BLOW SAYS HE HASN'T SEEN LAWYERS ACTUALLY HANDING OFF COSTS FROM ONE CLIENT TO ANOTHER BUT HE SAYS THE RISE OF WHAT HE CALLS AD HOC RELATIONSHIP NEGOTIATIONS HAS CERTAINLY ENABLED LARGER AND MORE AGGRESSIVE CONSUMERS OF LEGAL SERVICE TO OBTAIN MUCH MORE FAVORABLE TERMS FROM LAW FIRMS THAN ONE SHOT ISOLATED TRANSITORY CLIENTS INDEED IN RECENT YEARS MANY LAW FIRMS HAVE TACITLY ADOPTED MULTITIER BILLING SYSTEMS FOR EXAMPLE CERTAIN FIRMS NOW OFFER LOWER FEES TO CLIENTS OF LONG STANDING WHO TYPICALLY PAY ON TIME THERE'S A SORT OF A CODE MR. TOOTHMAN SAYS CLIENTS SHOULD ASK FOR THE QUOTE MOST FAVORABLE RATE CHARGED FOR SERVICES RENDERED TO LARGE CREDITWORTHY CLIENTS QUOTE OR THE LOWEST RATE QUOTE CHARGED BY SUCH PERSONS FOR SIMILAR WORK QUOTE HE SAYS SUCH TERMS ARE KNOWN INFORMALLY AS MOST FAVORED NATION CLAUSES AFTER INTERNATIONAL TREATIES BETWEEN COUNTRIES THAT COMMONLY DEAL WITH EACH OTHER SOME MAJOR LEGAL RETAINER AGREEMENTS NOW ROUTINELY INCORPORATE SUCH CLAUSES BUT MR. TOOTHMAN SUGGESTS SMALL COMPANIES OR CLIENTS WITH ONLY A LIMITED AMOUNT OF LEGAL WORK SHOULDN'T BE AFRAID TO REQUEST THEM NIPPONDENSO COMPANY JAPAN'S LARGEST PRODUCER OF ELECTRONIC AND ELECTRICAL PARTS FOR AUTOS REPORTED THAT UNCONSOLIDATED PRETAX PROFIT FOR NINETEEN NINETY THREE TUMBLED THIRTY SEVEN PERCENT PRETAX PROFIT FELL TO FORTY ONE POINT SIX THREE BILLION YEN THREE HUNDRED EIGHTY FOUR MILLION DOLLARS FROM SIXTY FIVE POINT SEVEN NINE BILLION YEN IN NINETEEN NINETY TWO NET INCOME DROPPED FORTY THREE PERCENT TO NINETEEN POINT SEVEN THREE BILLION YEN FROM THIRTY FOUR POINT TWO NINE BILLION YEN SALES DECLINED SIX POINT FIVE PERCENT TO ONE POINT TWO SEVEN TRILLION YEN FROM ONE POINT THREE FIVE EIGHT TRILLION YEN NIPPONDENSO IS THE SECOND LARGEST COMPANY IN THE TOYOTA MOTOR GROUP EXCEEDED ONLY BY THE FLAGSHIP AUTO MAKER TOYOTA MOTOR CORPORATION IT IS TWENTY FOUR PERCENT OWNED BY TOYOTA THE EARNINGS DROP WAS THE THIRD STRAIGHT YEAR OF DECLINE FOR THE COMPANY A SPOKESMAN SAID A DECLINE IN DOMESTIC AUTO SALES CUT INTO THE COMPANY'S PROFITABILITY ALSO DAMPING ITS PROFIT WAS THE CONTINUED TENDENCY OF CONSUMERS TO BUY CHEAPER AUTOS WHICH REDUCED SALES OF NIPPONDENSO'S HIGHLY PROFITABLE VALUE ADDED AUTOMOTIVE PARTS THE OFFICIAL SAID FOR THE CURRENT YEAR NIPPONDENSO IS PREDICTING PRETAX PROFIT WILL RISE ZERO POINT NINE PERCENT TO FORTY TWO BILLION YEN THE SPOKESMAN SAID EFFORTS TO RESTRUCTURE ARE EXPECTED TO BEAR FRUIT AND THE COMPANY SEES DEMAND FOR AUTOMOTIVE PARTS PERKING UP IN THE AUTUMN BUT IT SEES THE CURRENT SEVERE BUSINESS ENVIRONMENT CONTINUING AT LEAST UNTIL APRIL OR MAY BRITISH PETROLEUM COMPANY REPORTED A SHARP DROP IN FOURTH QUARTER NET INCOME WHEN IT TOOK HEFTY CHARGES FOR RESTRUCTURING ITS UNPROFITABLE PETROCHEMICAL OPERATIONS AND FOR CLOSING FACILITIES FOR THE ENTIRE YEAR HOWEVER NET TOTALED ONE POINT ONE THREE BILLION POUNDS ONE POINT SIX FIVE BILLION DOLLARS ON A REPLACEMENT COST BASIS MORE THAN DOUBLE THE FIVE HUNDRED THIRTY SIX MILLION POUNDS RECORDED FOR NINETEEN NINETY TWO B. P. SAID FOURTH QUARTER PROFIT DROPPED TO FIFTY FOUR MILLION POUNDS ON A REPLACEMENT COST BASIS AND AFTER EXCEPTIONAL ITEMS FROM ONE HUNDRED NINETY THREE MILLION POUNDS IN THE FINAL QUARTER OF NINETEEN NINETY TWO EVEN SO DAVID SIMON B. P.'S CHIEF EXECUTIVE SAID IN AN INTERVIEW THAT THE FOURTH QUARTER RESULTS WERE QUOTE SATISFACTORY GIVEN THE LEVEL OF OIL PRICES QUOTE OIL PRICES PLUNGED IN THE FOURTH QUARTER WHEN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES DECIDED IT WOULDN'T TRY TO PROP UP THE MARKET BY CUTTING OUTPUT FURTHER REPLACEMENT COST ACCOUNTING EXCLUDES THE IMPACT ON CHANGES IN INVENTORY VALUATIONS BUT THEY ARE REFLECTED IN HISTORIC COST ACCOUNTING A BASIS ON WHICH B. P. RECORDED A LOSS OF NINETY SEVEN MILLION POUNDS IN THE FOURTH QUARTER CONTRASTING WITH NET INCOME OF ONE HUNDRED THIRTY SIX MILLION POUNDS IN THE FINAL PERIOD OF NINETEEN NINETY TWO OF THE TWO HUNDRED EIGHTY FOUR MILLION POUNDS OF EXCEPTIONAL CHARGES IN THE FOURTH QUARTER TWO HUNDRED MILLION POUNDS WERE FOR RESTRUCTURING EUROPEAN PETROCHEMICAL OPERATIONS INCLUDING THE CLOSURE OF A FACILITY IN BAGLAN BAY WALES ANOTHER SIXTY MILLION POUNDS WERE CHARGED TO CLOSE A REFINERY IN HAMBURG GERMANY ANALYSTS NOTED THAT B. P.'S CURRENT SHARE PRICE HAS MORE THAN DOUBLED SINCE NINETEEN NINETY TWO WHEN THE COMPANY SLASHED ITS DIVIDEND AND EMBARKED ON BOTH A PROGRAM OF ASSET DISPOSALS TO REDUCE ITS DEBT AND A COST CUTTING PROGRAM TO IMPROVE ITS PERFORMANCE NONETHELESS MANY ANALYSTS WEIGHING THE SHARE RISE AND THE LOW OIL PRICES SAY THE STOCK IS LOSING ITS ALLURE IN TRADING YESTERDAY B. P. FELL BACK AFTER INITIAL GAINS SHARES ENDED AT THREE EIGHTY SIX PENCE DOWN FOUR POINT FIVE PENCE AFTER CLIMBING TO FOUR HUNDRED SIX POINT FIVE PENCE EARLIER B. P. ANNOUNCED A DIVIDEND OF TWO POINT ONE PENCE A SHARE FOR THE FOURTH QUARTER UNCHANGED FROM THE PRECEDING QUARTER AND FROM THE LIKE YEAR EARLIER PERIOD THIS BROUGHT THE TOTAL PAYOUT FOR NINETEEN NINETY THREE TO EIGHT POINT FOUR PENCE A SHARE DOWN FROM TEN POINT FIVE PENCE FOR NINETEEN NINETY TWO GROUP SALES TOTALED EIGHT POINT TWO BILLION POUNDS IN THE FOURTH QUARTER DOWN FROM NINE POINT EIGHT BILLION POUNDS A YEAR EARLIER SALES TOTALED THIRTY FOUR POINT NINE FIVE BILLION POUNDS FOR ALL NINETEEN NINETY THREE UP FROM THIRTY THREE POINT TWO FIVE BILLION POUNDS IN NINETEEN NINETY TWO BLOOMBERG L. P.'S NAME WAS MISSTATED AS BLOOMBERG P. L. IN AN ARTICLE YESTERDAY THAT DESCRIBED BLOOMBERG'S PLANS TO LAUNCH A BUSINESS NEWS TELEVISION NETWORK WHEN THE EARTHQUAKE KNOCKED OUT THE POWER TO AMGEN INCORPORATED'S SPRAWLING HEADQUARTERS COMPLEX LAST MONTH BACKUP GENERATORS HERE INSTANTLY KICKED IN TO KEEP THE BIOTECHNOLOGY COMPANY'S TWO BLOOD CELL GROWTH DRUGS FLOWING WITHOUT A HICCUP BUT AMGEN HAS HAD LESS SUCCESS PREPARING INVESTORS FOR A DIFFERENT KIND OF NATURAL PHENOMENON THE SLOWDOWN IN ITS ONCE EXPLOSIVE GROWTH AFTER TWELVE YEARS THAT SAW A TINY BIOTECH BOUTIQUE MUSHROOM INTO A GLOBAL PHARMACEUTICAL COMPANY WITH ONE POINT THREE SEVEN BILLION DOLLARS IN NINETEEN NINETY THREE REVENUE AMGEN THIS YEAR IS LOOKING FOR MORE MODEST REVENUE GROWTH IN THE QUOTE DOUBLE DIGIT QUOTE RANGE AFTER COMPANY OFFICIALS SHARED THIS VIEW WITH SECURITIES ANALYSTS DURING A CONFERENCE CALL LAST WEEK THE ANALYSTS TRANSLATED IT INTO A REVENUE GROWTH PROJECTION OF ROUGHLY FIFTEEN PERCENT MORE IN LINE WITH GROWTH AT TRADITIONAL DRUG COMPANIES SUCH AS PFIZER INCORPORATED OR MERCK AND COMPANY THAN AT BIOTECH'S BELLWETHER AFTER ANALYSTS BROADCAST THEIR LOWER NINETEEN NINETY FOUR SALES AND PROFIT PROJECTIONS DISAPPOINTED INVESTORS RUSHED FOR THE EXITS SINCE FEBRUARY FIRST WHEN MARKET JITTERS BEGAN TO SPREAD IN THE HOURS BEFORE THE ANALYSTS' CALL AMGEN SHARES HAVE FALLEN ABOUT FOURTEEN PERCENT FROM FORTY EIGHT DOLLARS AND SEVENTY FIVE CENTS A SHARE A NINE HUNDRED MILLION DOLLAR LOSS IN MARKET VALUE YESTERDAY AMGEN CLOSED AT FORTY ONE DOLLARS AND SEVENTY FIVE CENTS DOWN FIFTY CENTS IN NASDAQ STOCK MARKET TRADING THE SHARES ARE DOWN EIGHTY FIVE PERCENT SINCE LATE NINETEEN NINETY TWO WHEN THE CLINTONS BEGAN TO ATTACK HIGH DRUG PRICES SENDING PHARMACEUTICAL AND BIOTECH COMPANIES' STOCKS INTO A TAILSPIN AMGEN ISN'T LIVING UP TO THE VISION OF UNLIMITED GROWTH THAT PEOPLE WANT SAYS TEENA LERNER A LEHMAN BROTHERS ANALYST AND LONGTIME AMGEN BOOSTER THE NEW REALITY IS THAT AMGEN IS A COMPANY WITH A MORE CONVENTIONAL PROFILE BUT STILL VERY RESPECTABLE GROWTH OF BETWEEN FIFTEEN PERCENT AND SIXTEEN PERCENT THE IMMEDIATE CONCERN IS THAT SALES OF AMGEN'S NEUPOGEN DRUG A CANCER TREATMENT USED AS AN ADJUNCT TO CHEMOTHERAPY AREN'T RISING AS QUICKLY AS EXPECTED FURTHERMORE ITS PROBABLE NEXT NEW PRODUCT CONSENSUS INTERFERON FOR TREATMENT OF HEPATITIS C. IS STILL AT LEAST TWO YEARS AWAY AND ISN'T A CLEAR WINNER AND MOST GALLING TO AMGEN SOME FORMER EMPLOYEES AND OTHER CRITICS CHARGE THAT THE COMPANY IS SUFFERING FROM CREEPING BUREAUCRACY AND THE LOSS OF TALENTED SCIENTISTS I WOULDN'T AGREE WITH THAT ASSESSMENT RETORTS GORDON BINDER CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN AN INTERVIEW FROM SWITZERLAND THERE WAS A TIME WHEN THE C. E. O. KNEW THE NAMES OF ALL THE EMPLOYEES' SPOUSES AND CHILDREN THOSE TIMES ARE GONE NEVER TO RETURN BUT THE FUNDAMENTALS OF OUR CULTURE ARE STILL IN PLACE SOME OUTSIDERS AGREE THAT AMGEN IS DOING EXACTLY WHAT IT SHOULD BE AT THIS STAGE BUILDING ITS LONG TERM COMMERCIAL BASE BY QUOTE PARTNERING QUOTE WITH SUCH SMALLER BIOTECH COMPANIES AS REGENERON PHARMACEUTICALS INCORPORATED AND CLOSELY HELD SUGEN INCORPORATED AMGEN IS QUOTE RE ENERGIZING ITSELF AND STAYING FOCUSED QUOTE SAYS G. STEVEN BURRILL SENIOR ADVISER TO ERNST AND YOUNG'S HIGH TECHNOLOGY AND LIFE SCIENCES PRACTICE AMGEN IS TRYING TO REASSURE WALL STREET THAT ANY NEAR TERM NEUPOGEN WEAKNESS WILL BE MADE UP BY GREATER THAN EXPECTED SALES OF ITS OTHER DRUG A RED BLOOD CELL STIMULATOR CALLED EPOGEN BUT LONG TERM EPOGEN GROWTH IS SEVERELY CONSTRAINED BY AN OLD LICENSING AGREEMENT THAT GIVES AMGEN'S NEMESIS JOHNSON AND JOHNSON RIGHTS TO MOST POTENTIAL NEW MARKETS SUCH AS TREATMENT OF THE AIDS DISEASE AMGEN RECEIVES ROYALTIES FROM J. AND J'S SALES OF THE DRUG SOLD UNDER OTHER BRAND NAMES IN THE U. S. AND EUROPE AS A TREATMENT FOR OTHER DISEASES AMGEN'S MARKET IS RESTRICTED TO THE ROUGHLY ONE HUNDRED FORTY THOUSAND U. S. PATIENTS RECEIVING KIDNEY DIALYSIS TREATMENT BY CONTRAST AMGEN HAS KEPT MOST RIGHTS TO NEUPOGEN SOLD IN THE U. S. AND MANY FOREIGN COUNTRIES INCLUDING CANADA AUSTRALIA AND THROUGHOUT EUROPE THE SPREAD OF NEW HIGH DOSE CHEMOTHERAPY CANCER THERAPIES HAS SPURRED DEMAND FOR NEUPOGEN WHICH DOMINATES ITS MARKET WITH A NINETY THREE PERCENT SHARE AMGEN SAYS LAST YEAR NEUPOGEN SALES GREW THIRTY TWO PERCENT TO SEVEN HUNDRED NINETEEN POINT FOUR MILLION DOLLARS OF WHICH A QUARTER ARE OUTSIDE THE U. S. EPOGEN SALES CLIMBED NEARLY SIXTEEN PERCENT TO FIVE HUNDRED EIGHTY SIX POINT NINE MILLION DOLLARS MANY DRUG COMPANIES INCLUDING AMGEN BLAME THE HEALTH CARE REFORM DEBATE FOR DISCOURAGING PHYSICIANS FROM USING EXPENSIVE NEW DRUGS AT A COST OF MORE THAN ONE HUNDRED DOLLARS A DAY NEUPOGEN CAN ADD SIX THOUSAND DOLLARS TO SEVEN THOUSAND DOLLARS TO A CHEMOTHERAPY TREATMENT AND AMGEN CALCULATES THAT LESS THAN A THIRD OF PATIENTS WHO COULD BENEFIT FROM NEUPOGEN ARE GETTING IT BUT MEDICAL ONCOLOGISTS BELIEVE THE HEALTH CARE DEBATE IS ONLY PART OF THE STORY IT'S TRUE THAT DOCTORS ARE BEING FORCED TO THINK HARDER ABOUT COST EFFECTIVENESS EVEN OF REVOLUTIONARY DRUGS SUCH AS NEUPOGEN SAYS CARY PRESANT PRESIDENT OF THE CALIFORNIA CANCER MEDICAL CENTER IN WEST COVINA CALIFORNIA BUT NEUPOGEN USAGE ALSO COULD FALL AS DOCTORS LEARN MORE ABOUT WHICH PATIENTS CAN BENEFIT MOST FROM THE DRUG AND WHEN THE MOST APPROPRIATE TIMES ARE TO USE IT HE SAYS AMGEN HOPES THAT NEUPOGEN GROWTH WILL SPURT AGAIN IN NINETEEN NINETY SIX BASED ON RESULTS OF CONTINUING HUMAN TESTS DESIGNED TO PROVE THE DRUG'S EFFECTIVENESS AS A POWERFUL NEW ANTIBIOTIC NEUPOGEN WOULD LOOK VERY MUCH LIKE A NEW PRODUCT IF IT WERE APPROVED FOR INFECTIOUS DISEASE MR. BINDER SAYS SINCE AMGEN BEGAN TESTING NEUPOGEN FOR THIS BROAD USE THE ENTHUSIASM OF SOME ANALYSTS HAS WANED AS THEY LEARNED OF COMPETITIVE DRUGS UNDER DEVELOPMENT COMPETITION IS ALSO A CONCERN WITH CONSENSUS INTERFERON WHICH SOME CRITICS DENIGRATE AS A ME TOO PRODUCT THE DATA AREN'T COMPELLING ENOUGH TO SHOW THAT IT IS THAT MUCH MORE POTENT AGAINST HEPATITIS C. THAN ALPHA INTERFERON THE CURRENT THERAPY SAYS LARRY BLOOM A DILLON READ AND COMPANY ANALYST SOME ANALYSTS BELIEVE THAT AMGEN'S NEXT BEST SHOT AT ANOTHER HOME RUN PRODUCT IS BRAIN DERIVED NEUROTROPHIC FACTOR OR BDNF A BRAIN NERVE GROWTH FACTOR THAT IS CONSIDERED A PROMISING FUTURE TREATMENT FOR LOU GEHRIG'S DISEASE ALZHEIMER'S AND PARKINSON'S QUOTE THIS WILL BE BIGGER THAN EPOGEN OR NEUPOGEN QUOTE WITH SALES STARTING AS EARLY AS NINETEEN NINETY SIX AND REACHING TWO BILLION DOLLARS BY THE YEAR TWO THOUSAND MR. BLOOM PREDICTS PROFIT WOULD BE SPLIT WITH REGENERON A TARRYTOWN N. Y. BIOTECH COMPANY THAT IS AMGEN'S PARTNER IN DEVELOPING BDNF AND ANOTHER MOLECULE AMGEN SPENT TWO HUNDRED FIFTY FIVE MILLION DOLLARS OR SEVENTEEN PERCENT OF TOTAL REVENUE ON RESEARCH AND DEVELOPMENT LAST YEAR INCLUDING A BIG CHUNK ON OUTSIDE COLLABORATIONS THOSE OUTSIDE EFFORTS CHEER SOME AMGEN CRITICS INCLUDING FORMER EMPLOYEES TO SUCCEED BIOTECH COMPANIES NEED TO ENTERTAIN NEW IDEAS AND I DON'T THINK THAT SITUATION EXISTS AT AMGEN THERE ISN'T REALLY A SUPPORT FOR CREATIVITY SAYS KRISZTINA ZSEBO ONE OF THE MORE PROMINENT SCIENTISTS TO LEAVE AMGEN DOCTOR ZSEBO DISCOVERER OF THE STEM CELL FACTOR MOLECULE LEFT TWO YEARS AGO AND IS NOW VICE PRESIDENT OF PRODUCT DEVELOPMENT AT CELL GENESYS INCORPORATED A FOSTER CITY CALIFORNIA BIOTECH CONCERN AMGEN IS STILL ATTRACTING CAPABLE SCIENTISTS BUT THEY ARE PEOPLE WHO LIKE WORKING FOR A YOUNG MERCK WHO DON'T HAVE TO TAKE A CHANCE SAYS W. NEAL BURNETTE A MOLECULAR BIOLOGIST WHO LEFT AMGEN A YEAR AGO TO START HIS OWN COMPANY AMGEN NEEDS TO DEVELOP A NEW TYPE OF INTRAPRENEURSHIP SO IT CAN APPROACH THE DYNAMISM THAT IT HAD IN THOSE EARLY DAYS THAT LED TO THOSE TWO BLOCKBUSTER DRUGS IF IT CAN MAYBE WE'LL SEE THOSE DAYS AGAIN PRICES OF LONG TERM TREASURYS LOST A LITTLE GROUND IN THE AFTERMATH OF A SUCCESSFUL THIRTY YEAR BOND AUCTION LARGELY BECAUSE OF THIN TRADING AHEAD OF TODAY'S INFLATION REPORT AS BOND INVESTORS NERVOUSLY WATCHED THE MARKET DROP MANY ASKED THEMSELVES IF PRICES OF LONG TERM SECURITIES COULD RALLY AGAIN SINCE THE FEDERAL RESERVE HAS STARTED RAISING SHORT TERM INTEREST RATES A NUMBER OF WALL STREET'S LARGEST FIRMS SAID IT IS POSSIBLE THOUGH A NUMBER OF ANALYSTS SAID THEY BELIEVE IT UNLIKELY YESTERDAY THE PRICE OF THE BENCHMARK THIRTY YEAR TREASURY BOND DROPPED NEARLY ONE HALF POINT OR NEARLY FIVE DOLLARS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY SEVEN AND THIRTEEN THIRTY SECONDS ITS YIELD ROSE TO SIX POINT FOUR FOUR PERCENT FROM SIX POINT FOUR OH PERCENT ON WEDNESDAY THE AVERAGE YIELD ON THE TREASURY'S ELEVEN POINT OH FIVE BILLION DOLLARS OF THIRTY YEAR NOTES SOLD YESTERDAY WAS SIX POINT FOUR THREE PERCENT IN LINE WITH EXPECTATIONS THE TREASURY RECEIVED BIDS TOTALING THIRTY POINT SEVEN SEVEN BILLION DOLLARS AND IT ACCEPTED BIDS TOTALING ELEVEN POINT OH FIVE BILLION DOLLARS INCLUDING THREE HUNDRED FIFTY FIVE MILLION DOLLARS OF NONCOMPETITIVE TENDERS AT THE AVERAGE YIELD DOWN FROM THREE HUNDRED NINETY MILLION DOLLARS AT THE PREVIOUS AUCTION ON AUGUST TWELFTH NINETEEN NINETY THREE THE BID COVER RATIO WHICH COMPARES THE NUMBER OF BIDS RECEIVED AND THE NUMBER SOLD WAS TWO POINT SEVEN EIGHT TO ONE THE PREVIOUS BOND SALE IN AUGUST NINETEEN NINETY THREE PRODUCED AN AVERAGE YIELD OF SIX POINT THREE THREE PERCENT AND A HIGH YIELD OF SIX POINT THREE FIVE PERCENT THE BID COVER RATIO WAS TWO POINT ONE THREE TO ONE BOND INVESTORS ARE WORRIED ABOUT A REPORT ON THE JANUARY PRODUCER PRICE INDEX SCHEDULED FOR RELEASE TODAY A BIG JUMP IN THE INDEX WHICH IS A KEY MEASURE OF INFLATION COULD CONVINCE INVESTORS THAT INFLATION IS BACK AND THE FED MOVED TOO SLOWLY TO RAISE SHORT TERM RATES TO BATTLE IT ECONOMISTS ESTIMATE THE CORE P. P. I. EXCLUDING THE VOLATILE FOOD AND ENERGY COMPONENTS WILL RISE BY ZERO POINT THREE PERCENT IF THE NUMBER COMES IN AT ZERO POINT FOUR PERCENT AND RETAIL SALES SHOW STRENGTH THE MARKET COULD SELL OFF BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN IN TRADING THE WHEN ISSUED THIRTY YEAR BOND TRADED AT A YIELD OF SIX POINT FOUR FOUR PERCENT THE TEN YEAR NOTE SOLD WEDNESDAY WAS TRADING AT A YIELD OF FIVE POINT NINE OH PERCENT IN WHEN ISSUED TRADING WHILE THE NEW THREE YEAR NOTE WAS YIELDING FOUR POINT EIGHT TWO PERCENT AMONG THE BIG BOND HOUSES CALLING FOR LONG TERM YIELDS TO FALL THIS YEAR DESPITE THE LAST WEEK'S FED RATE INCREASE WERE C. S. FIRST BOSTON GOLDMAN SACHS LEHMAN GOVERNMENT SECURITIES MERRILL LYNCH AND SALOMON BROTHERS ECONOMISTS AT THESE FIRMS ARGUED THAT INFLATION WILL REMAIN WELL CONTAINED THIS YEAR AFTER FALLING BELOW THREE PERCENT IN NINETEEN NINETY THREE THEY SAID IT IS POSSIBLE THAT THE FED WILL BE ABLE TO CONTAIN PRICE PRESSURES AND THAT ECONOMIC GROWTH WON'T BE SUSTAINED AT LEVELS WHICH WILL RESULT IN A FLARE UP OF INFLATION HOWEVER A NUMBER OF ANALYSTS CONTENDED THAT LONG TERM INTEREST RATES HAVE NEVER BEEN ABLE TO FALL FOR A SUSTAINED PERIOD OF TIME WHEN THE FED HAS BEEN RAISING SHORT TERM INTEREST RATES THEY DEEMED IT UNLIKELY THAT THE LINK WILL BE BROKEN THE FEDERAL RESERVE PUSHED UP THE FEDERAL FUNDS RATE BY A QUARTER OF A PERCENTAGE POINT A WEEK AGO IN WHAT MOST ANALYSTS SAID THEY BELIEVE WILL BE THE FIRST OF MANY TIGHTENINGS NORMALLY WALL STREET WOULD BE BRACING FOR LONG TERM INTEREST RATES TO HEAD HIGHER AS WELL BUT IT IS THE CHANCE THAT BOND YIELDS COULD DECLINE EVEN AS SHORT TERM INTEREST RATES ARE RISING THAT HAS CAPTURED THE ATTENTION OF TRADERS AND INVESTORS BRUCE STEINBERG SENIOR ECONOMIST AT MERRILL LYNCH IS AMONG THOSE WHO ARGUED THAT THE FED MAY HAVE HELPED CREATE A UNIQUE SET OF CIRCUMSTANCES IN WHICH LONG TERM RATES COULD DECLINE QUOTE THE PATH OF LONG RATES IS GOING TO DEPEND PRINCIPALLY ON INFLATION AND INFLATION EXPECTATIONS QUOTE MR. STEINBERG SAID AND THE FED'S TIGHTENING RIGHT NOW HAS TO BE SEEN AS PREEMPTIVE IT'S AN ATTEMPT TO KEEP INFLATION FROM GOING HIGHER AND AN ATTEMPT TO CONVINCE THE MARKET IT IS ACTING PROACTIVELY RATHER THAN REACTIVELY ASIDE FROM THE FED TIGHTENING THERE ARE OTHER REASONS TO BELIEVE INFLATION CAN FALL FURTHER MR. STEINBERG SAID HE ARGUED THAT THE PRODUCTIVITY BOOM OF THE PAST FEW YEARS HAS RAISED THE PACE AT WHICH THE ECONOMY CAN GROW WITHOUT DEVELOPING PRICE PRESSURES I DON'T THINK THERE IS A RISK THIS YEAR OR NEXT OF INFLATION HEATING UP MR. STEINBERG SAID BUT OTHER ANALYSTS WEREN'T QUITE SO SURE JOHN WILLIAMS CHIEF GLOBAL MARKET ECONOMIST AT BANKERS TRUST SAID IT WAS HIGHLY UNLIKELY THAT LONG TERM BOND YIELDS COULD FALL AT THE SAME TIME AS THE FED IS TIGHTENING DURING A CYCLICAL UPTURN IN THE ECONOMY YOU ARE GOING TO HAVE SOME UPWARD PRESSURE ON ALL INTEREST RATES MR. WILLIAMS SAID QUOTE ONCE WE GET THROUGH THIS ECONOMIC CYCLE AND THE FED SUCESSFULLY SLOWS THE ECONOMY QUOTE HE ADDED QUOTE WE CAN HAVE A FURTHER DOWNWARD MOVE IN LONG TERM RATES QUOTE DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS WAS ALSO SKEPTICAL IF INFLATION WAS CONTINUING TO FALL WHY WOULD THE FED CONTINUE TO TIGHTEN SHOULD LONG TERM INTEREST RATES FALL AS THE FED TIGHTENED IT WOULD BE A SIGNIFICANT BREAK FROM PAST PATTERNS MOST ANALYSTS SAID IT HAS NEVER HAPPENED ON A SUSTAINED BASIS OF OVER THREE OR SIX MONTHS SAID LOUIS CRANDALL CHIEF ECONOMIST AT R. H. WRIGHTSON AND ASSOCIATES MR. CRANDALL ARGUED THAT PART OF THE REASON LONG TERM RATES HAVE FOLLOWED SHORT TERM RATES IS THAT THE MARKET READS AN IMPLICIT FORECAST INTO FED POLICY MOVES HE SAID THE WAY THE REASONING TYPICALLY GOES IS IF THE FED IS EASING THE FED MUST BE WORRIED ABOUT THE HEALTH OF THE ECONOMY MR. CRANDALL WENT ON TO ADD THAT THE FED IS PRESENTING THIS MOVE NOT AS A REACTION TO INFLATION PRESSURES BUT AS A PRE EMPTIVE MOVE SO THERE IS AN IMPLICIT FORECAST OF RISING INFLATION QUOTE THERE IS ALSO A TECHNICAL REASON FOR LONG TERM INTEREST RATES TRACKING THE DIRECTION OF SHORT TERM RATES ANALYSTS SAID HIGHER SHORT TERM RATES MEAN HIGHER COSTS OF FINANCING INVENTORIES OF SECURITIES IF A GUY IS BUYING BONDS THE COST OF FINANCING HAS JUST GONE UP SAID SAMUEL KAHAN CHIEF ECONOMIST AT FUJI SECURITIES BUT ROBERT ARIEL AN ASSISTANT PROFESSOR OF FINANCE AT BARUCH COLLEGE SAID THE LINK BETWEEN LONG TERM AND SHORT TERM INTEREST RATES IS NOT AS STRONG AS IT APPEARS TO BE THE OLD TIME BET OF THE CONNECTION BETWEEN LONG RATES AND SHORT RATES IS MUCH MORE TENUOUS THAN IS COMMONLY THOUGHT MR. ARIEL SAID AT ITS MOST BASIC LEVEL SHORT TERM INTEREST RATES REFLECT NEAR TERM CREDIT DEMAND WHILE LONG TERM INTEREST RATES REFLECT LONG TERM CREDIT DEMAND AND INFLATION EXPECTATIONS MR. ARIEL SAID WHEN WE DRAW A YIELD CURVE WE ARE IN FACT CONNECTING SEPARATE MARKETS HE SAID IN ADDITION LONG TERM RATES TEND TO MOVE IN LONG CYCLES LONG TERM RATES PEAKED IN NINETEEN EIGHTY ONE AND SHORT TERM INTEREST RATES HAVE BOUNCED AROUND QUITE A BIT SINCE THEN MR. ARIEL ALSO ARGUED THAT THE GAP BETWEEN LONG TERM AND SHORT TERM RATES IS QUOTE HISTORICALLY HUGE QUOTE LEAVING PLENTY OF ROOM FOR SHORT TERM RATES TO MOVE HIGHER WITHOUT TAKING LONG TERM RATES ALONG FOR THE RIDE SHORT RATES COULD GO UP WITHOUT DRAGGING LONG RATES UP BECAUSE LONG RATES ALREADY ARE UP MR. ARIEL SAID 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 BONDS ARE DATED FEBRUARY FIFTEENTH AND MATURE AUGUST FIFTEENTH TWO THOUSAND TWENTY THREE KAISER ALUMINUM'S KAISER ALUMINUM AND CHEMICAL CORPORATION AND CALPINE CORPORATION LED ACTIVITY IN THE JUNK BOND MARKET YESTERDAY WHILE NORTHERN STATES POWER COMPANY SOLD TWO HUNDRED MILLION DOLLARS OF DEBT THROUGH A COMPETITIVE OFFERING EARLY IN THE SESSION OTHERWISE SECONDARY TRADING WAS EXTREMELY THIN AS THE MARKET FOCUSED ON THE TREASURY'S AUCTION OF THIRTY YEAR BONDS YIELD SPREADS IN THE INVESTMENT GRADE MARKET OVER COMPARABLE TREASURYS WERE SLIGHTLY NARROWER AND PRICES FOLLOWED TREASURYS DOWN NORTHERN STATES POWER SOLD TWO HUNDRED MILLION DOLLARS OF FIRST MORTGAGE BONDS THROUGH A COMPETITIVE BID WON BY MORGAN STANLEY THE FIVE POINT FIVE PERCENT COUPON BONDS WERE PRICED AT NINETY NINE POINT EIGHT TWO FIVE TO YIELD FIVE POINT FIVE FOUR PERCENT IN THE JUNK BOND MARKET KAISER ALUMINUM'S NINE AND SEVEN EIGHTHS COUPON EIGHT YEAR SENIOR NOTES WERE PRICED AT NINETY NINE POINT THREE TWO FOUR TO YIELD TEN PERCENT IN CONJUNCTION WITH A STOCK OFFERING THROUGH LEAD MANAGER MERRILL LYNCH THE OFFERING'S SIZE WAS INCREASED TO TWO HUNDRED TWENTY FIVE MILLION DOLLARS FROM ONE HUNDRED SEVENTY FIVE MILLION DOLLARS TO MEET INVESTOR DEMAND A MERRILL CAPITAL MARKETS OFFICIAL SAID PEOPLE VIEW THIS AS A CYCLICAL TURNAROUND STORY THE OFFICIAL SAID NOTING THAT THE ALUMINUM MARKET HAS BEEN HELPED BY POSITIVE TRADE AGREEMENTS THE OFFERING WHICH WAS PRICED LATE IN THE SESSION WAS THREE TIMES OVERSUBSCRIBED HE ADDED THE NOTES ARE NONCALLABLE FOR FOUR YEARS MEANWHILE BONDS OF TIME WARNER ENTERTAINMENT COMPANY A UNIT OF TIME WARNER INCORPORATED TOOK A SLIGHT JOLT YESTERDAY FOLLOWING THE FIRM'S REGISTRATION OF A SHELF OFFERING OF AS MUCH AS TWO BILLION DOLLARS OF DEBT SECURITIES TIME WARNER ENTERTAINMENT INCLUDES ALL OF THE CABLE TELEVISION AND FILMED ENTERTAINMENT OPERATIONS OF TIME WARNER INCORPORATED IN THE FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE FIRM SAID PROCEEDS WOULD BE USED FOR DEBT REPAYMENT AND GENERAL PURPOSES THE UNIT HAS ABOUT SEVEN POINT ONE BILLION DOLLARS IN DEBT INCLUDING TWO POINT FOUR BILLION DOLLARS IN BANK DEBT THE UNIT'S LONG TERM DEBT TRADED LATE YESTERDAY AT ABOUT ONE POINT THREE TWO PERCENTAGE POINTS ABOVE THE BENCHMARK THIRTY YEAR TREASURY UP FROM ABOUT ONE POINT TWO EIGHT PERCENTAGE POINTS BEFORE THE FILING A WALL STREET SYNDICATE OFFICIAL SAID MAX HOLMES A SALOMON BROTHERS ANALYST SAID SOME INVESTORS MAY BE SPOOKED BY THE PROSPECT THAT TIME WARNER IS LOADING UP WITH DEBT TO MAKE IT DIFFICULT FOR SUITOR SEAGRAM COMPANY TO GAIN CONTROL OF THE COMPANY MR. HOLMES SAID THE MOST INTERESTING QUESTION IS DOES THIS HAVE ANYTHING TO DO WITH THE POTENTIAL RAID OF TIME WARNER BY SEAGRAM BUT A TIME WARNER SPOKESMAN SAID THE DEBT'S PURPOSE IS WHAT WE SAID IN THE FILING PRICES OF MUNICIPAL BONDS FINISHED NARROWLY MIXED AFTER AN UNINSPIRED SESSION AMONG SECONDARY ISSUES THE MONROE COUNTY DEVELOPMENT AUTHORITY OF GEORGIA'S FIVE POINT FOUR PERCENT BONDS OF TWO THOUSAND TWENTY FOUR FINISHED ONE QUARTER POINT LOWER AT NINETY EIGHT AND ONE QUARTER TO YIELD FIVE POINT FOUR NINE PERCENT BUT THE REEDY CREEK IMPROVEMENT DISTRICT OF FLORIDA'S FIVE PERCENT BONDS OF TWO THOUSAND NINETEEN CLOSED ONE EIGHTH HIGHER AT NINETY FOUR AND THREE EIGHTHS TO YIELD FIVE POINT THREE SEVEN PERCENT MARKET PARTICIPANTS ARE GETTING SET FOR THE SALE OF CALIFORNIA'S THREE POINT TWO BILLION DOLLARS OF NINETEEN NINETY FOUR REVENUE ANTICIPATION WARRANTS IN COMPETITIVE BIDDING TUESDAY STANDARD AND POOR'S CORPORATION SAID THAT IT HAS REVISED ITS LONG TERM RATING OUTLOOK ON CALIFORNIA TO NEGATIVE FROM STABLE S. AND P. SAID THE ACTION REFLECTS CONTINUED DETERIORATION IN THE STATE'S CASH POSITION AND A PROJECTED NINETEEN NINETY FOUR ADJUSTED OPERATING DEFICIT WHICH WILL PREVENT THE STATE FROM MAKING PROGRESS TOWARD DEFICIT REDUCTION S. AND P. ALSO ASSIGNED ITS S. P. ONE RATING TO THE STATE'S REVENUE ANTICIPATION WARRANTS MORTGAGE SECURITIES PRICES ENDED MIXED WITH HIGHER COUPON ISSUES OUTPERFORMING LOWER COUPON ISSUES ON TRADE BASED ON EXPECTATIONS OF SLOWING PREPAYMENTS THE FEDERAL RESERVE'S TIGHTENING MOVE LAST WEEK AND THE LATEST FEDERAL HOME LOAN MORTGAGE CORPORATION REPORT ON MORTGAGE LENDING RATES BOLSTERED SPECULATION THAT HIGHER RATES WILL STIFLE REFINANCINGS THE CORPORATION'S WEEKLY SURVEY SHOWED LENDERS ASKED FOR AN AVERAGE RATE OF SEVEN POINT TWO ONE PERCENT ON CONVENTIONAL THIRTY YEAR FIXED RATE MORTGAGES IN THE LATEST WEEK UP FROM SIX POINT NINE SEVEN PERCENT A WEEK EARLIER BUT LOWER COUPON PRICES WERE DOWN AS MUCH AS FIVE THIRTY SECONDS AMONG SIX POINT FIVES FOR MARCH DELIVERY GINNIE MAES WERE FOUR THIRTY SECONDS WEAKER AT NINETY EIGHT AND TWENTY THIRTY SECONDS FREDDIE MAC GOLDS AND FANNIE MAES WERE FIVE THIRTY SECONDS LOWER ON THE DAY TRADING AT NINETY EIGHT AND TWENTY FIVE THIRTY SECONDS AND NINETY EIGHT AND NINETEEN THIRTY SECONDS RESPECTIVELY LESLIE SCISM CONTRIBUTED TO THIS ARTICLE FOSTER WHEELER ENERGY CORPORATION A UNIT OF FOSTER WHEELER CORPORATION SAID IT IS NEGOTIATING A ONE HUNDRED EIGHTY FIVE MILLION DOLLAR CONTRACT TO PROVIDE TWO STEAM GENERATORS FOR A CHINESE POWER PROJECT THE COMPANY SAID THE TWO THREE HUNDRED MEGAWATT ANTHRACITE COAL FIRED GENERATORS WOULD BE PURCHASED BY THE INTERNATIONAL TENDERING COMPANY OF THE CHINA NATIONAL TECHNICAL IMPORT AND EXPORT CORPORATION AND THE HUBEI ELECTRIC POWER INDUSTRY BUREAU FOSTER WHEELER CORPORATION A PROVIDER OF DESIGN ENGINEERING CONSTRUCTION AND PLANT OPERATIONS SERVICES SAID THE POWER PROJECT IS BEING FINANCED BY THE OVERSEAS ECONOMIC COOPERATION FUND OF JAPAN AT FOUR THIRTY ONE A. M. ON JANUARY SEVENTEENTH THE FORTUNES OF THIS ALREADY TROUBLED CITY TOOK A TUMBLE TWENTY FIVE MILES AWAY THE LOS ANGELES AREA EARTHQUAKE COLLAPSED A FIVE STORY HIGH FREEWAY INTERSECTION SEVERING PALMDALE'S MAIN CONNECTION TO THE URBAN CENTER WHERE MANY OF ITS NOW RATTLED RESIDENTS WORK SUDDENLY HOURS HAVE BEEN ADDED TO THE COMMUTING TIMES OF THOUSANDS A STROKE OF MISFORTUNE FOR A CITY WHERE THINGS ARE ALREADY SO BAD THAT CALLS FOR CHRISTMAS CHARITY BASKETS QUADRUPLED THIS YEAR AT A LOCAL MUNICIPAL AID AGENCY THOUGH LOCAL ECONOMIES ARE IMPROVING IN MUCH OF THE NATION THE FORCES OF SOUTHERN CALIFORNIA'S ENTRENCHED RECESSION AND DAMAGE FROM ITS EARTHQUAKE ARE WRIT LARGE HERE WITH TROUBLING FINANCIAL AND SOCIAL REPERCUSSIONS ON THE ONCE BOOMING SUBURBAN FRINGE OF LOS ANGELES RECOVERY IS NOWHERE IN SIGHT ADVERTISEMENTS FOR LOCAL SUPERMARKETS NOTE THAT FOOD STAMPS ARE WELCOME FORECLOSURES ON HOMES ARE CLIMBING AND CITY OFFICIALS ARE WORRIED ABOUT MEETING PAYMENTS ON MUNICIPAL DEVELOPMENT BONDS PALMDALE WHICH GREW FASTER THAN ALL OTHER CALIFORNIA CITIES DURING THE STATE'S PEAK YEARS IN THE NINETEEN EIGHTIES IS TODAY A STUDY IN SUBURBAN CHANGE A DESERT SITE THAT HAS ACQUIRED THE POPULATION AND THE PROBLEMS OF THE URBAN LIFE ITS RESIDENTS CAME HERE TO AVOID QUOTE THE CITY WITHOUT LIMITS QUOTE AS PALMDALE BILLS ITSELF HAS NEARLY NINETY THOUSAND INHABITANTS OVER SEVEN TIMES THE TWELVE THOUSAND RESIDENTS IN NINETEEN EIGHTY SOME TWENTY THOUSAND PEOPLE HAVE ARRIVED IN THE LAST THREE YEARS ALONE EVEN IN RECESSION GROWTH IS THE MAIN BUSINESS IN PALMDALE WHERE FLAGS AND BILLBOARDS ADVERTISE SUBDIVISIONS AND A SEA OF RED TILED ROOFS AND WHITE STUCCO HOUSES STRETCHES INTO THE DISTANCE TO ME IF A CITY ISN'T GROWING IT'S DYING SAYS JAMES LEDFORD JUNIOR PALMDALE'S PART TIME MAYOR WHO IS OTHERWISE UNEMPLOYED CHEAP HOUSING DRAWS PEOPLE TO THIS SITE SIXTY MILES NORTH OF DOWNTOWN LOS ANGELES FOR NOT MUCH MORE THAN ONE HUNDRED THOUSAND DOLLARS INEXPENSIVE BY CALIFORNIA STANDARDS THE AMERICAN DREAM IS WITHIN REACH THE DOWNSIDE FOR MANY IN THE WORK FORCE HAS BEEN A DAILY DRIVE OF AS MUCH AS FOUR HOURS TO AND FROM DOWN BELOW AS LOCALS REFER TO THE SPRAWL OF LOS ANGELES WITH THE SEVERED FREEWAY THAT TRIP HAS GROWN IN SOME CASES TO AS MUCH AS FIVE OR SIX HOURS WHILE PALMDALE'S POPULATION SWELLS ITS COMMERCIAL LIFE BLOOD HAS COAGULATED HOUSING CONSTRUCTION HAS PLUNGED FROM A PEAK OF ALMOST SEVEN THOUSAND HOMES VALUED AT A TOTAL OF SEVEN HUNDRED SIXTY MILLION DOLLARS IN NINETEEN EIGHTY NINE PALMDALE'S RESIDENTIAL BUILDING PERMITS HAVE DWINDLED TO SIX HUNDRED TWENTY SEVEN HOUSES VALUED AT JUST SIXTY FIVE MILLION DOLLARS IN THE FIRST TEN MONTHS OF LAST YEAR PALMDALE'S NEWER RESIDENTS ARE FLOCKING TO SMALLER MORE DENSELY PACKED APARTMENTS AND HOUSES THE CITY'S MANY MARGINAL FIRST TIME BUYERS HAVE BEEN ESPECIALLY VULNERABLE TO DECLINING ECONOMIC FORTUNES THROUGH OCTOBER MORTGAGE LENDERS FORECLOSED ON NEARLY SEVEN HUNDRED FORTY HOUSES TOTALING ONE HUNDRED TWENTY TWO MILLION DOLLARS IN VALUE ACCORDING TO T. R. W. REDI PROPERTY DATA AT THIS RATE FORECLOSURES ARE OUTPACING NEW CONSTRUCTION IN VALUE PALMDALE HOUSE PRICES HAVE FALLEN MODERATELY BY CALIFORNIA STANDARDS OFF ABOUT THIRTEEN PERCENT TO AN AVERAGE OF ONE HUNDRED THIRTY FOUR THOUSAND FOUR HUNDRED DOLLARS FROM A PEAK OF ONE HUNDRED FIFTY FIVE THOUSAND TWO HUNDRED DOLLARS IN NINETEEN NINETY MORE TELLING IS WHAT HAS HAPPENED IN THE REAL ESTATE DEVELOPMENT MARKET PRICES FOR UNDEVELOPED LAND HAVE PLUNGED TO LESS THAN HALF THEIR NINETEEN EIGHTY NINE PEAK EVEN AS VALUES DWINDLE PALMDALE'S POPULATION KEEPS SWELLING IN THE SURGE THE IMAGE OF BENIGN SUBURBIA OF LAWNS AND BARBECUES AND HOUSES ON QUIET CURVED STREETS IS CLASHING INCREASINGLY WITH THE REALITIES OF MODERN CALIFORNIA FROM A POPULATION ALMOST ENTIRELY WHITE MOSTLY BLUE COLLAR AND VERY MIDDLE CLASS PALMDALE HAS DIVERSIFIED INTO A RACIAL AND SOCIOECONOMIC MIX CLOSER TO THAT OF GREATER LOS ANGELES LESS THAN TWO THIRDS OF PALMDALE'S POPULATION IS WHITE NON HISPANIC THESE DAYS ROUGHLY ONE QUARTER IS LATINO THE REMAINDER INCLUDES A GROWING BLACK POPULATION AS WELL AS ASIAN AMERICANS WITH THESE CHANGES PROBLEMS HAVE EMERGED HATE MAIL AND CALLS POURED IN WHEN A LOCAL ENGLISH LANGUAGE RADIO STATION DROPPED AN ENGLISH LANGUAGE COUNTRY AND WESTERN FORMAT TO BECOME THE FIRST ALL SPANISH STATION IN THE AREA A SKINHEAD WAS FOUND WITH A PIPEBOMB AT THE LOCAL HIGH SCHOOL NOT LONG AGO AND A CALIFORNIA LEGISLATOR WHO IS A FORMER MAYOR OF PALMDALE RAISED EYEBROWS WHEN HE DISTRIBUTED A RACIST POEM THAT MOCKED LATINO IMMIGRANTS YET PALMDALE IN ONE MAJOR WAY MAY REPRESENT A MULTIRACIAL MODEL FOR SUBURBAN AMERICA AMID RAPID GROWTH COMMUNITIES SPRANG UP WITHOUT REGARD TO SKIN COLOR WE DIDN'T WORRY WHO OUR NEIGHBORS WERE WE WERE LOOKING FOR AFFORDABLE HOUSING SAYS MAYOR LEDFORD HOWEVER THE MIDDLE CLASS COMFORTS OF HOME OWNERSHIP ARE BEING UNDERCUT BY SOUTHERN CALIFORNIA'S ECONOMIC WOES COMMUTER WORKERS HAVE BEEN BROADLY AFFECTED BY LOS ANGELES AREA JOBLESSNESS WHICH HAS LINGERED ABOVE NINE PERCENT FOR SEVERAL YEARS NOW AT A GIANT AIR FORCE FACILITY IN THE HEART OF PALMDALE WHERE LOCKHEED CORPORATION NORTHROP CORPORATION AND ROCKWELL INTERNATIONAL CORPORATION ALL OPERATE AIRCRAFT ASSEMBLY AND MAINTENANCE FACILITIES UNDER CONTRACT JOBS ARE BEING CONSOLIDATED FROM OTHER LOS ANGELES REGION FACILITIES BOOSTING EMPLOYMENT SOON TO ABOUT ELEVEN THOUSAND PEOPLE FROM ABOUT EIGHT THOUSAND FIVE HUNDRED CURRENTLY BUT MANY OF THOSE POSITIONS ARE FILLED BY EMPLOYEES COMMUTING FROM ELSEWHERE AND ARE SLATED TO DISAPPEAR IN A FEW YEARS AS PRODUCTION CONTRACTS FOR THE B. TWO STEALTH BOMBER AND OTHER PROJECTS ARE COMPLETED THE CITY OF PALMDALE ITSELF IS SHEDDING WORKERS AND ITS OWN AMBITIOUS DEVELOPMENT PLANS HAVE STUMBLED IN A RECENT LETTER TO HOLDERS OF SOME OF ITS LOCAL IMPROVEMENT BONDS THE CITY EXPLAINED THAT THOUGH PAYMENTS TO BONDHOLDERS HAVE BEEN UP TO DATE LOCAL BUSINESSES HAVE MADE LESS THAN TWO THIRDS OF REQUIRED PAYMENTS ON TIME INTO THE LOCAL IMPROVEMENT FUND AND THAT DELINQUENCIES WERE RUNNING INTO THE MILLIONS OF DOLLARS BUT THE CITY IS UNDER STRAIN PUBLIC SERVICES ARE MORE IN DEMAND THAN EVER FROM THE GROWING AND CHANGING POPULATION THE CITY'S MAIN CHARITY AGENCY A PROVIDER OF LAST RESORT FOR FINANCIALLY IMPERILED RESIDENTS RAN OUT OF MONEY BRIEFLY THIS FALL CRIME ONCE RELATIVELY LOW HAS SOARED OF LATE JUVENILE ARRESTS FOR SERIOUS CRIMES JUMPED TWENTY SIX PERCENT IN THE FIRST EIGHT MONTHS OF NINETEEN NINETY THREE SAYS RICHARD LOA A LOCAL PUBLIC DEFENDER AND PROMINENT MEMBER OF THE LATINO COMMUNITY PEOPLE CAME HERE TO ESCAPE BUT EVERYTHING THAT THEY RAN FROM IN LOS ANGELES IS COMING UP HERE THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY TWO POINT THREE BILLION CANADIAN DOLLARS ONE POINT SEVEN ONE BILLION U. S. DOLLARS OF FIVE POINT SEVEN FIVE PERCENT BONDS DUE MARCH FIRST NINETEEN NINETY NINE PROCEEDS WILL BE USED TO REDEEM ONE POINT FIVE BILLION CANADIAN DOLLARS OF GOVERNMENT BONDS MATURING MARCH FIRST NINETEEN NINETY FOUR AND FOR GENERAL PURPOSES THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND THREE SIXTEENTHS PERCENT HIGH THREE AND ONE SIXTEENTH PERCENT LOW THREE AND ONE SIXTEENTH PERCENT NEAR CLOSING BID THREE AND ONE EIGHTH PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT THREE THREE PERCENT THIRTY TO THIRTY NINE DAYS THREE POINT THREE FIVE PERCENT FORTY TO FIFTY NINE DAYS THREE POINT FOUR OH PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT FOUR FIVE PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT FOUR EIGHT PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT FIVE OH PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT FIVE FIVE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT SIX OH PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT FOUR TWO PERCENT THIRTY DAYS THREE POINT FOUR SEVEN PERCENT SIXTY DAYS THREE POINT FIVE ONE PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT SEVEN ONE PERCENT ONE MONTH TWO POINT SEVEN EIGHT PERCENT TWO MONTHS TWO POINT EIGHT THREE PERCENT THREE MONTHS THREE POINT OH ONE PERCENT SIX MONTHS THREE POINT TWO NINE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT THREE FIVE PERCENT ONE MONTH THREE POINT FOUR FIVE PERCENT THREE MONTHS THREE POINT SIX FIVE PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT TWO NINE PERCENT THIRTY DAYS THREE POINT THREE FOUR PERCENT SIXTY DAYS THREE POINT THREE SEVEN PERCENT NINETY DAYS THREE POINT FOUR FOUR PERCENT ONE HUNDRED TWENTY DAYS THREE POINT FOUR NINE PERCENT ONE HUNDRED FIFTY DAYS THREE POINT FIVE FOUR PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT ONE MONTH THREE AND ONE HALF PERCENT THREE AND THREE EIGHTHS PERCENT TWO MONTHS THREE AND NINE SIXTEENTHS PERCENT THREE AND SEVEN SIXTEENTHS PERCENT THREE MONTHS THREE AND FIVE EIGHTHS PERCENT THREE AND ONE HALF PERCENT FOUR MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT THREE AND NINE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE QUARTERS PERCENT THREE AND FIVE EIGHTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND THREE EIGHTHS PERCENT ONE MONTH THREE AND NINE SIXTEENTHS PERCENT THREE MONTHS THREE AND THREE QUARTERS PERCENT SIX MONTHS FOUR AND ONE SIXTEENTH PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT NINE ONE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT TWO FIVE PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY SEVENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT TWO FOUR PERCENT THIRTEEN WEEKS THREE POINT FOUR OH PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SEVEN POINT OH EIGHT PERCENT SIXTY DAYS SEVEN POINT ONE FOUR PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SEVEN POINT OH FIVE PERCENT SIXTY DAYS SEVEN POINT ONE FIVE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT TWO FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN TWO PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS ATTORNEY GENERAL JANET RENO NAMED JO ANN HARRIS AS ACTING DEPUTY ATTORNEY GENERAL TO TEMPORARILY SUCCEED PHILIP HEYMANN WHOSE RESIGNATION TAKES EFFECT TODAY MS. HARRIS WILL CONTINUE HER DUTIES AS ASSISTANT ATTORNEY GENERAL FOR THE CRIMINAL DIVISION UNTIL THE SENATE CONFIRMS SOMEONE TO SUCCEED MR. HEYMANN JAMIE GORELICK CURRENTLY THE PENTAGON'S GENERAL COUNSEL IS THE LEADING CANDIDATE FOR DEPUTY ATTORNEY GENERAL UNTIL A PERMANENT DEPUTY IS SELECTED THE MANAGEMENT DIVISION WHICH NORMALLY REPORTS TO MR. HEYMANN'S OFFICE WILL REPORT TO ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL WHO GENERALLY OVERSEES THE DEPARTMENT'S CIVIL MATTERS THE MANAGEMENT DIVISION IS RESPONSIBLE FOR THE DEPARTMENT'S BUDGETARY AND PERSONNEL MATTERS A DEPARTMENT STATEMENT SAID THE REPORTING SHIFT WAS DONE QUOTE TO MORE EQUITABLY DISTRIBUTE THE WORKLOAD QUOTE WHILE MS. HARRIS RUNS THE CRIMINAL DIVISION AND THE DEPUTY'S OFFICE A CONFIDENTIAL REPORT PREPARED FOR THE INTERNAL REVENUE SERVICE INDICATES THAT TAX REFUND FRAUD COULD BE COSTING THE GOVERNMENT BILLIONS OF DOLLARS I. R. S. COMMISSIONER MARGARET RICHARDSON TOLD CONGRESS MS. RICHARDSON WAS QUESTIONED ABOUT THE REPORT DURING A HOUSE WAYS AND MEANS OVERSIGHT SUBCOMMITTEE HEARING WHICH FOCUSED ON FRAUD IN ELECTRONIC FILINGS AT THE HEARING A CONVICTED TAX SCAM PERPETRATOR DESCRIBED DEFRAUDING THE I. R. S. WITH BOGUS ELECTRONIC TAX FILINGS AS QUITE EASY QUOTE EASY AS PIE QUOTE CONCLUDED SUBCOMMITTEE CHAIRMAN J. J. PICKLE D. TEXAS THE I. R. S. COMMISSIONER DECLINED TO DISCUSS SPECIFICS OF THE CONFIDENTIAL REPORT WHICH WAS PREPARED BY AN OUTSIDE CONSULTANT IN OPEN SESSION BUT SHE SAID THE THRUST OF THE REPORT IS THAT THE I. R. S. BADLY NEEDS TO COME TO GRIPS WITH REFUND FRAUD RELATED TO ELECTRONIC TAX FILINGS WHILE SHE DESCRIBED THE PROBLEM AS TERRIBLY SERIOUS MS. RICHARDSON MADE IT CLEAR SHE ISN'T SUBSCRIBING TO ANY PARTICULAR LOSS ESTIMATE AT THIS TIME AFTER THE HEARING I. R. S. OFFICIALS DECLINED TO PROVIDE MORE SPECIFIC FIGURES MS. RICHARDSON SAID THE I. R. S. HAS ASKED THE LOS ALAMOS NATIONAL LABORATORY IN LOS ALAMOS N. M. TO EMPLOY ARTIFICIAL INTELLIGENCE IN FIGHTING ELECTRONIC FILING FRAUD THROUGH LOS ALAMOS'S ADVANCED COMPUTING LAB WE CAN PLACE THE RESOURCES OF THE WORLD'S MOST POWERFUL HIGH PERFORMANCE COMPUTERS TO WORK ON THE PROBLEM OF FRAUD DETECTION SHE SAID THE I. R. S. CHIEF ALSO SAID THE AGENCY HAS ASSEMBLED SPECIALISTS KNOWN IN TAX ENFORCEMENT CIRCLES AS TIGER TEAMS TO CHALLENGE THE TAX FILING SYSTEM WITH THEIR OWN SCAM TECHNIQUES REPRESENTATIVE PICKLE WHO SAID HE WILL RECOMMEND SUSPENDING THE I. R. S.'S ELECTRONIC TAX RETURN FILING PROGRAM UNLESS THE AGENCY GETS A HANDLE ON THE FRAUD PROBLEMS BY THIS FALL SAID THE I. R. S. PAID TWENTY FIVE THOUSAND DOLLARS TO A CONSULTANT TO PREPARE THE REPORT HE URGED THE AGENCY TO MAKE IT PUBLIC AS SOON AS POSSIBLE MS. RICHARDSON DECLINED TO IDENTIFY THE CONSULTANT WHO PREPARED THE REPORT AND SEEMED DISPLEASED THAT IT WAS BROUGHT UP AT A PUBLIC HEARING THE REPORT DEALS WITH TAX REFUND FRAUD RELATED TO BOTH ELECTRONIC AND PAPER FILINGS THE GENERAL ACCOUNTING OFFICE TOLD THE HOUSE PANEL THAT ELECTRONIC FILING FRAUD REQUIRES URGENT I. R. S. ATTENTION SAYING THAT IN THE FIRST TEN MONTHS OF NINETEEN NINETY THREE THE I. R. S. IDENTIFIED A ONE HUNDRED FIVE PERCENT INCREASE IN FRAUDULENT ELECTRONIC RETURNS COMPARED WITH THE YEAR EARLIER PERIOD THE ISSUE WILL BECOME QUOTE MORE CRITICAL AS THE I. R. S. MOVES TOWARD ITS GOAL OF EIGHTY MILLION ELECTRONIC RETURNS BY TWO THOUSAND ONE QUOTE THE CONGRESSIONAL WATCHDOG AGENCY SAID WHAT MAKES ELECTRONIC FILING AN ATTRACTIVE TARGET TO CON ARTISTS IS THE QUICK TURNAROUND TIME FOR REFUNDS TWO MEN NOW SERVING PRISON TERMS FOR TAX RETURN VIOLATIONS TOLD THE SUBCOMMITTEE OF THEIR FRAUD TECHNIQUES AND VOLUNTEERED TO SERVE ON THE I. R. S. TIGER TEAMS WHEN THEY'RE RELEASED FRAZIER TODD JUNIOR WHO OPERATED AN ELECTRONIC TAX RETURN FRAUD PRIMARILY OUT OF ATLANTA TOLD THE HOUSE PANEL THAT THE I. R. S. DIDN'T DETECT HIS FRAUDULENT SCHEME ON ITS OWN BUT WAS TIPPED OFF BY AN INFORMANT THE I. R. S.'S MS. RICHARDSON TOLD THE SUBCOMMITTEE THAT THE AGENCY ALREADY HAS DETECTED TWO HUNDRED SCHEMES INVOLVING APPROXIMATELY THREE THOUSAND ATTEMPTS TO FILE FRAUDULENT CLAIMS ON RETURNS IN THE FIRST SIX WEEKS OF THE NINETEEN NINETY FOUR TAX FILING SEASON SHE SAID MOST OF THE MORE SOPHISTICATED FRAUD SCHEMES ARE DEVISED BY PEOPLE SKILLED IN COMPUTER PROGRAMS AND TECHNIQUES INDONESIA AND AN INTERNATIONAL CONSORTIUM PLAN TO SIGN TODAY A THIRTY YEAR PRICING AGREEMENT THEY EXPECT TO CLEAR THE WAY FOR THE CONSTRUCTION OF A TWO POINT FIVE BILLION DOLLAR PRIVATELY OWNED POWER PLANT A GOVERNMENT OFFICIAL AND THE CONSORTIUM SAID SEPARATELY EARLIER THIS WEEK THAT THE STAGE IS SET FOR SIGNING A QUOTE POWER PURCHASE AGREEMENT QUOTE ON PRICING AND TERMS FOR INDONESIA'S FIRST BIG PRIVATE POWER PROJECT AND WHAT WOULD BE ONE OF ASIA'S LARGEST PRIVATE INFRASTRUCTURE DEVELOPMENTS IT HAS TAKEN EIGHTEEN MONTHS FOR THE GOVERNMENT TO REACH AGREEMENT WITH THE COMPANIES FORMING P. T. PAITON ENERGY WITH THE SIGNING ONE OBSTABLE REMAINS AS THE VENTURE MUST ARRANGE TO BORROW ABOUT ONE POINT EIGHT BILLION DOLLARS THE CONSORTIUM IS MADE UP OF MISSION ENERGY B. V. OF THE NETHERLANDS A UNIT OF MISSION ENERGY COMPANY OF THE U. S. WITH A THIRTY TWO POINT FIVE PERCENT STAKE GENERAL ELECTRIC POWER FUNDING CORPORATION OF THE U. S. ALSO WITH A THIRTY TWO POINT FIVE PERCENT HOLDING MITSUI AND COMPANY OF JAPAN WITH A TWENTY PERCENT STAKE AND P. T. BATU HITAM PERKASA OF INDONESIA WITH A FIFTEEN PERCENT SHARE IF AND WHEN FINANCING IS LINED UP THE CONSORTIUM WILL BUILD TWO SIX HUNDRED SIXTY MEGAWATT GENERATORS AT PAITON ABOUT FIFTY SIX MILES EAST OF SURABAYA INDONESIA'S SECOND LARGEST CITY EACH COAL FIRED GENERATOR IS TO PROVIDE SIX HUNDRED FIFTEEN MEGAWATTS OF ELECTRICITY TO THE NATIONAL GRID OF PLN INDONESIA'S STATE POWER UTILITY FOR THIRTY YEARS THE CONSORTIUM PLANS TO PUT IN ABOUT SIX HUNDRED FIFTY MILLION DOLLARS IN EQUITY FOR THE PROJECT THE COST OF WHICH IT ESTIMATES AT ABOUT TWO POINT FIVE BILLION DOLLARS THE GOVERNMENT HAS AGREED TO LET THE COMPANIES PUT IN HALF OF THEIR EQUITY IN THE FORM OF SUBORDINATED LOANS THIS HELPS US MANAGE OUR TOTAL TAX BURDEN SAID ROBERT M. EDGELL MISSION'S CHIEF OPERATING OFFICER OF THE ONE POINT EIGHT BILLION DOLLARS IN DEBT THAT THE PAITON PROJECT NEEDS THE CONSORTIUM EXPECTS AGENCIES SUCH AS THE U. S. EXPORT IMPORT BANK AND JAPAN EXPORT IMPORT BANK TO PROVIDE ABOUT ONE POINT FOUR BILLION DOLLARS FOR THE OTHER FOUR HUNDRED MILLION DOLLARS THE CONSORTIUM HOPES TO RAISE SOME FROM MULTILATERAL AGENCIES AND THE REST FROM CAPITAL MARKETS PLANS CALL FOR A FOUR YEAR CONSTRUCTION PERIOD WITH THE DEBT AMORTIZED IN THE FIRST TEN YEARS OF COMMERCIAL PRODUCTION THE PRICING FORMULA WITH DIFFERENT RATES FOR THREE DIFFERENT PERIODS IS SET UP TO REFLECT DEBT PAYMENT NEEDS CONSORTIUM MEMBERS SAID THE RATE IN THE FINAL STAGE IS ABOUT SIXTY PERCENT OF THE FIRST STAGE RATE WHILE FIGURES WEREN'T DISCLOSED INDUSTRY SOURCES SAID THEY BELIEVE THAT DURING THE FIRST SEVEN YEARS INDONESIA'S PLN WILL PAY ABOUT EIGHT POINT FIVE CENTS A KILOWATT HOUR MR. EDGELL SAID HE'S CONFIDENT THE AGREEMENT WILL ATTRACT THE NEEDED ONE POINT EIGHT BILLION DOLLARS AND THAT IT CONTAINS NO GAPS THAT WILL REQUIRE RENEGOTIATION HE SAID HE HOPES FINANCING WILL BE ARRANGED WITHIN SIX MONTHS AND CERTAINLY BEFORE THE END OF THE YEAR ALEXANDER BROWN INCORPORATED FORMED A. B. S. CAPITAL PARTNERS L. P. TO CARRY OUT THE BROKERAGE FIRM'S MERCHANT BANKING BUSINESS THE EXPANDED BANKING BUSINESS HAS AN INITIAL FUNDING OF ONE HUNDRED ELEVEN MILLION DOLLARS ALEXANDER BROWN WHICH FORMED ITS MERCHANT BANKING OPERATION IN NINETEEN NINETY HAS TAKEN OWNERSHIP POSITIONS IN FIVE COMPANIES THROUGH THE MERCHANT BANKING BUSINESS THE BROKERAGE FIRM WILL BE THE LARGEST INSTITUTIONAL LIMITED PARTNER IN A. B. S. CAPITAL OTHER INVESTORS INCLUDE PENSION FUNDS INDIVIDUALS AND FINANCIAL INSTITUTIONS HOW IMPORTANT IS PRIVATE TELEVISION FOR A HEALTHY ADVERTISING MARKET FROM ITS NEW EUROPEAN MARKETING AND MEDIA SURVEY FOR NINETEEN NINETY FOUR YOUNG AND RUBICAM EUROPE CONCLUDES THAT CONTRARY TO CONVENTIONAL WISDOM STATE TELEVISION MONOPOLIES DEPRESS NOT ONLY ADVERTISING RATES BUT ALSO ADVERTISING SPENDING FOR OTHER MEDIA IN THE SAME MARKET QUOTE IT'S CLEAR TO ME THAT STATE MONOPOLIES ARTIFICIALLY RESTRICT AND DEPRESS THE WHOLE ADVERTISING MARKET QUOTE SAYS JANE PERRY WHO HEADED THE STUDY OF EUROPEAN ADVERTISING AND MEDIA HABITS AS MEDIA RESEARCH DIRECTOR FOR YOUNG AND RUBICAM EUROPE A UNIT OF YOUNG AND RUBICAM INCORPORATED NEW YORK ADVERTISERS ARE NOT SPENDING AS MUCH AS THEY WOULD IN THOSE MARKETS AND THEREFORE IT HOLDS BACK THE NATURAL DEVELOPMENT OF THE MARKET FOR EXAMPLE IN SWITZERLAND AND FINLAND WHICH DON'T HAVE PRIVATE NATIONAL TELEVISION ADVERTISING EXPENDITURES FOR MEDIA REMAINED BASICALLY FLAT FOR THE PAST SEVEN TO EIGHT YEARS MS. PERRY SAID TOTAL AD EXPENDITURES IN SWITZERLAND WERE TWO POINT FIVE BILLION SWISS FRANCS ONE POINT SIX NINE BILLION DOLLARS IN NINETEEN NINETY TWO UP FROM TWO POINT FOUR BILLION SWISS FRANCS IN NINETEEN EIGHTY SIX USING CONSTANT NINETEEN EIGHTY FIVE PRICES THE SURVEY INDICATES LIKEWISE FINLAND'S TOTAL AD SPENDING REMAINED AT THREE POINT TWO BILLION FINNISH MARKKAS FIVE HUNDRED SIXTY SIX POINT SEVEN MILLION DOLLARS OR THE SAME AS IN NINETEEN EIGHTY FOUR AT CONSTANT NINETEEN EIGHTY FIVE PRICES THAT COMPARES WITH MARKETS LIKE ITALY FRANCE AND GERMANY THAT HAVE PRIVATE CHANNELS AND HAVE SEEN DRAMATIC GROWTH IN AD SPENDING IN ITALY FOR EXAMPLE AD SPENDING MORE THAN DOUBLED TO SIX POINT THREE TRILLION LIRE THREE POINT SEVEN THREE BILLION DOLLARS IN NINETEEN NINETY TWO FROM TWO POINT EIGHT TRILLION LIRE IN NINETEEN EIGHTY TWO AGAIN USING CONSTANT NINETEEN EIGHTY FIVE PRICES GERMAN AD SPENDING IN THAT PERIOD NEARLY DOUBLED TO TWENTY THREE POINT SEVEN BILLION MARKS THIRTEEN POINT FOUR SEVEN BILLION DOLLARS IN NINETEEN NINETY TWO FROM THIRTEEN POINT THREE BILLION MARKS IN NINETEEN EIGHTY TWO ALL DOLLAR CONVERSIONS ARE BASED ON CURRENT EXCHANGE RATES FOR ITS FOURTH CONSECUTIVE ANNUAL MEDIA SURVEY YOUNG AND RUBICAM EUROPE GATHERED ECONOMIC DEMOGRAPHIC MEDIA AND ADVERTISING STATISTICS FOR TWENTY TWO EUROPEAN COUNTRIES FROM ORGANIZATIONS AND ASSOCIATIONS IN EACH COUNTRY RESPONSIBLE FOR OFFICIAL DATA MS. PERRY SAYS IT STANDARDIZED THE FIGURES FOR COMPARISON UNTIL NINETEEN EIGHTY EIGHT ONLY FOUR COUNTRIES ITALY FRANCE GERMANY AND THE U. K. HAD PRIVATE NATIONAL TELEVISION MS. PERRY NOTES BUT THE CONTINUOUS INTRODUCTION OF PRIVATE CABLE AND SATELLITE CHANNELS OVER THE PAST FIVE YEARS HAS DRAMATICALLY ALTERED THE ADVERTISING CLIMATE YOUNG AND RUBICAM EUROPE SAYS TODAY ONLY FOUR COUNTRIES REMAIN WITH STATE MONOPOLIES SWITZERLAND FINLAND IRELAND AND AUSTRIA NORMALLY YOU FIND THAT THE ABSENCE OF A LIVELY T. V. AD MARKET AFFECTS OTHER MEDIA ADVERTISING MS. PERRY SAYS AS AD SPENDING FOR T. V. INCREASES SPENDING IN OTHER MEDIA DOES AS WELL CONTRARY TO WHAT MANY NEWSPAPERS AND MAGAZINE PUBLISHERS HAVE FEARED PRIVATE TELEVISION ADVERTISING DOESN'T STEAL PRINT ADVERTISING BUT INSTEAD EXPANDS TOTAL AD SPENDING THE STUDY FOUND I'VE FOUND NO LONG TERM RELATIONSHIP BETWEEN TELEVISION GAINING ADVERTISING AND PRESS LOSING MS. PERRY SAYS PRESS MIGHT LOSE ITS SHARE OF ADVERTISING AS A WHOLE BUT THE TOTAL HAS BECOME BIGGER SO ADVERTISING ON T. V. IS ULTIMATELY BENEFICIAL FOR EVERYONE THE YOUNG AND RUBICAM EUROPE STUDY ALSO FOUND ADDING TELEVISION CHANNELS TENDS TO CHANGE PROGRAMMING CONTENT AND VIEWING BEHAVIOR QUOTE THE FIRST THING YOU NOTICE IS AN IMPROVEMENT IN PROGRAM QUALITY QUOTE MS. PERRY SAYS THERE BECOMES A DIFFERENCE BETWEEN WHAT THE CONSUMER WANTS TO WATCH AND WHAT THE GOVERNMENT WANTS THE CONSUMER TO WATCH TYPICALLY A COUNTRY THAT HAS STATE TELEVISION AS WELL AS PRIVATE TELEVISION WILL SEE THE TWO CONVERGE IN TERMS OF PROGRAM QUALITY SHE SAYS PUBLIC SERVICE BROADCASTERS SUDDENLY REACT WHEN NEW CHANNELS COME ALONG INSTEAD OF LOW COST DISCUSSION PROGRAMS HEAVY DOCUMENTARIES AND LOTS OF POLITICIANS' SPEECHES THEY INTRODUCE GAME SHOWS AND OTHER THINGS TO LIVEN IT UP SHE SAYS ON THE OTHER HAND THE PRIVATE BROADCASTER SEEKS CREDIBILITY AND WILL INTRODUCE SERIOUS PROGRAMMING ORIGINAL PRODUCTIONS AND DOCUMENTARIES TO GAIN VIEWERS' AND ADVERTIERS' RESPECT ONE SURPRISING CONCLUSION IN THE STUDY IS THAT AVAILABILITY OF PRIVATE TELEVISION DOESN'T NECESSARILY INCREASE THE HOURS VIEWERS TUNE IN INSTEAD INCREASES IN VIEWING HOURS CORRESPOND WITH THE NUMBER OF HOURS BROADCAST A DAY QUALITY OF PROGRAMMING DOESN'T APPEAR TO INFLUENCE HOW LONG VIEWERS WATCH ALL OVER THE WORLD I'VE FOUND THAT IF THE T. V. IS THERE PEOPLE WILL WATCH IT AND THEY DON'T REALLY CARE WHAT'S ON MS. PERRY SAYS VIEWING HOURS ALSO DEPEND ON WEATHER TIME SPENT IN THE HOME AND THE NUMBER OF TELEVISION SETS PER HOUSEHOLD MS. PERRY SAYS ACCORDING TO THE STUDY THE MOST AVID VIEWERS ARE IN BRITAIN WHERE THEY WATCH AN AVERAGE OF THREE POINT FIVE HOURS A DAY FOLLOWED BY SPAIN WITH THREE POINT THREE HOURS ITALY AND GREECE WITH THREE HOURS SEVEN MINUTES AND FRANCE THREE HOURS FIVE MINUTES THE SWISS WATCH THE LEAST ONE HOUR FIFTY FOUR MINUTES A DAY WINNER INTERNATIONAL CORPORATION MAKER OF WELL KNOWN CAR ANTITHEFT DEVICE THE CLUB TOOK AN UNUSUAL STEP TO LOCK OUT COMPETITORS OF THE POPULAR PRODUCT AND FOUND ITSELF IN A LEGAL TANGLE WINNER THE UNDISPUTED LEADER IN THE AUTOMOBILE STEERING WHEEL LOCK MARKET WROTE TO ONE OF ITS DISTRIBUTORS DEMANDING THAT IT STOP SELLING A COMPETITIVE STEERING WHEEL LOCK MADE BY KRYPTONITE CORPORATION THE LETTER LAST FALL TO RETAILER BEVERLY HILLS MOTORING ACCESSORIES CHARGED THAT KRYPTONITE'S LOCK AND ITS PACKAGING WERE TOO SIMILAR TO THE CLUB'S AND VIOLATED THE LAW AND QUOTE ANY ENTITY WITHIN THE CHAIN OF DISTRIBUTION CAN BE LIABLE QUOTE FOR INFRINGEMENT ON THE CLUB'S TRADE DRESS THE LETTER SAID THE LETTER POINTED OUT A NUMBER OF ACTIONS AGAINST PRODUCTS THAT WINNER SAID INFRINGED ON THE CLUB'S PATENTS OR TRADE DRESS BUT SIGNIFICANTLY WINNER HADN'T STARTED ANY LEGAL ACTION DIRECTLY AGAINST KRYPTONITE AND DIDN'T NOTIFY KRYPTONITE BEFORE THREATENING ACTION AGAINST THE SELLER THE LETTER TO THE DISTRIBUTOR PROMPTED KRYPTONITE BASED IN CANTON MASSACHUSETTS TO SUE WINNER CHARGING OBSTRUCTION OF BUSINESS AND THE TWO COMPANIES IN LATE JANUARY REACHED A PRELIMINARY SETTLEMENT IN WHICH WINNER AGREED TO SEND NO MORE LETTERS INTELLECTUAL PROPERTY SPECIALISTS FIND THE CLUB MAKER'S AGGRESSIVE APPROACH HIGHLY UNUSUAL MICHAEL BLOMMER EXECUTIVE DIRECTOR OF THE AMERICAN INTELLECTUAL PROPERTY LAW ASSOCIATION IN ARLINGTON VIRGINIA SAID ATTACKING A COMPETITOR THROUGH A THIRD PARTY IS VERY RARE INDEED BECAUSE SUCH MOVES ARE LIKELY TO PROMPT LAWSUITS YOU OPEN YOURSELF UP TO A CLAIM THAT YOU INTERFERED IN CONTRACTUAL RELATIONS WITH THE DISTRIBUTOR SAID NEW YORK LAWYER KENNETH MADSEN DAVID BERNSTEIN ANOTHER NEW YORK LAWYER WHO SPECIALIZES IN INTELLECTUAL PROPERTY SAID HE HAS CONTACTED DISTRIBUTORS BUT WITH CAUTION IN CASES WHERE HIS CLIENT HAS A COURT ORDER TO INTERRUPT A COMPETING PRODUCT'S SALE OR WHERE THE PRODUCER'S IDENTITY IS AMBIGUOUS NEITHER WAS THE CASE WITH KRYPTONITE WINNER KNEW WHO MANUFACTURED THE LOCK BEFORE THE COMPETITOR HIT THE MARKET LATE LAST YEAR AND THERE WAS NO COURT ORDER FOR SELLERS TO PULL THE DEVICE WINNER SPOKESMAN TOM MCCARTNEY SAID WINNER'S LEGAL COUNSEL CONSIDERS THE THIRD PARTY LETTER A NORMAL REACTION THE COMPANY HAS DONE BEFORE TO WARN COMPETITORS THEY MAY BE BREAKING THE LAW AND COULD FACE LEGAL ACTION WINNER HAS MAINTAINED AN AGGRESSIVE CAMPAIGN AGAINST ALLEGED IMITATORS OF THE CLUB THE ANTITHEFT DEVICE THAT VIRTUALLY CREATED THE MARKET THE SHARON PENNSYLVANIA COMPANY IS SAID TO CONTROL SEVENTY FIVE PERCENT OF THE ONE HUNDRED THIRTY MILLION DOLLAR MARKET THAT HAS ATTRACTED SCORES OF COMPETITORS BEVERLY HILLS PRESIDENT ANDY COHEN SAID HIS COMPANY MADE IT CLEAR IN ITS CATALOG THAT THE KRYPTONITE LOCK WASN'T THE CLUB HE SAID KRYPTONITE'S BRAND NAME WAS MARKED PLAINLY MR. COHEN SELLS THE KRYPTONITE LOCK FOR EIGHTY NINE DOLLARS AND NINETY FIVE CENTS COMPARED WITH FORTY FOUR DOLLARS AND NINETY FIVE CENTS FOR THE CLUB AND ALTHOUGH THEY BOTH COME IN RED AND WOULD HIT A WINDSHIELD KEEPING A STEERING WHEEL FROM TURNING THE DEVICES HAVE DIFFERENT STEERING WHEEL ATTACHMENTS BUT WINNER'S MR. MCCARTNEY POINTED OUT THE CLUB WHICH THE BEVERLY HILLS CALIFORNIA RETAILER ALSO SELLS WASN'T IN THAT CATALOG AND PEOPLE THEREFORE MIGHT IDENTIFY THE KRYPTONITE LOCK AS THE CLUB THE UPSHOT OF THE DISPUTE IS THAT DESPITE THE TENTATIVE AGREEMENT UNDER WHICH WINNER SAID IT WON'T WRITE ANY MORE LETTERS TO RETAILERS ABOUT KRYPTONITE THE NEWCOMER STILL ISN'T SATISFIED PRESIDENT PETER ZANE SAID HIS COMPANY WHICH FILED ITS SUIT IN DECEMBER IN A U. S. DISTRICT COURT IN MASSACHUSETTS WILL SEEK A JUDGMENT SO IT HAS AMMUNITION IF WINNER DOESN'T KEEP ITS PROMISES A COURT DATE HASN'T BEEN SET PRATT HOTEL CORPORATION DALLAS SAID ITS SUBSIDIARIES G. B. PROPERTY FUNDING CORPORATION AND PRT FUNDING CORPORATION SOLD TWO HUNDRED SEVENTY MILLION DOLLARS OF DEBT SECURITIES G. B. PROPERTY SOLD ONE HUNDRED EIGHTY FIVE MILLION DOLLARS OF TEN AND SEVEN EIGHTHS FIRST MORTGAGE NOTES GUARANTEED BY GREATE BAY HOTEL AND CASINO INCORPORATED AND G. B. HOLDINGS INCORPORATED AND SECURED BY A FIRST LIEN ON THE SANDS HOTEL AND CASINO IN ATLANTIC CITY N. J. PRT FUNDING SOLD EIGHTY FIVE MILLION DOLLARS OF ELEVEN AND FIVE EIGHTHS PERCENT SENIOR NOTES GUARANTEED BY ITS PARENT COMPANY PRATT CASINO CORPORATION PRATT HOTEL SAID PROCEEDS OF THE OFFERINGS WILL BE USED TO REFINANCE MUCH OF THE EXISTING DEBT OF ITS SUBSIDIARIES SALOMON BROTHERS LED THE UNDERWRITING GROUP THE OFFERINGS ARE EXPECTED TO CLOSE FEBRUARY SEVENTEENTH AFTER THIRTEEN HOURS OF FUTILE NEGOTIATIONS U. S. OFFICIALS HELD OUT THE TINIEST GLIMMER OF HOPE THAT THEY STILL MIGHT REACH A TRADE DEAL WITH JAPAN TODAY BUT LATE LAST NIGHT NONE OF THEM KNEW EXACTLY HOW INSTEAD ON THE EVE OF A SUMMIT MEETING TODAY BETWEEN PRIME MINISTER MORIHIRO HOSOKAWA AND PRESIDENT CLINTON THE TWO SIDES WERE LOCKED IN A GAME OF HIGH STAKES BRINKSMANSHIP JAPANESE FOREIGN MINISTER TSUTOMU HATA WHO ARRIVED FOR NEGOTIATIONS A DAY EARLY SPENT ALL DAY YESTERDAY SHUTTLING BETWEEN U. S. CABINET OFFICIALS AND GETTING REBUFFED AT EVERY TURN OFFICIALS RANGING FROM U. S. TRADE REPRESENTATIVE MICKEY KANTOR TO VICE PRESIDENT AL GORE TO TREASURY SECRETARY LLOYD BENTSEN TOLD MR. HATA THAT JAPAN HAD TO AGREE TO IMPORT GOALS AND WAYS TO MEASURE PROGRESS TOWARD THOSE GOALS MR. HATA JUST AS RESOLUTELY TOLD THE U. S. OFFICIALS THAT JAPAN WOULDN'T MAKE ANY SUCH CONCESSIONS AT NINE P. M. MR. KANTOR TOLD THE JAPANESE THAT THE TALKS AGAIN WERE SUSPENDED BUT MR. KANTOR WAS BANKING ON HOPES THAT MR. HATA WOULD MEET WITH HIS BOSS MR. HOSOKAWA WHO ARRIVED IN WASHINGTON AROUND DINNER TIME THE U. S. HOPED THAT MR. HATA'S BLEAK REPORT WOULD PUT PRESSURE ON MR. HOSOKAWA TO MAKE CONCESSIONS IN THAT CASE THEY EXPECTED MR. HATA TO TRY ONE MORE ROUND OF TALKS PRESIDENT CLINTON AND PRIME MINISTER HOSOKAWA ARE SUPPOSED TO WRAP UP THE SO CALLED FRAMEWORK TRADE TALKS TODAY THE TWO LEADERS ARE TO CONFER FOR ABOUT TWO AND ONE HALF HOURS AND COMPLETE A PACT COVERING AUTOS AUTO PARTS INSURANCE MEDICAL EQUIPMENT AND TELECOMMUNICATIONS BUT THE TWO SIDES REMAIN DEADLOCKED OVER U. S. INSISTENCE THAT JAPAN AGREE TO NUMERICAL TARGETS THE ONLY CAUSE FOR OPTIMISM THAT U. S. OFFICIALS COULD CITE IS HISTORY SINCE THE END OF WORLD WAR TWO THE TWO SIDES HAVE NEVER REACHED A DEADLINE FOR A TRADE PACT AND WALKED AWAY WITHOUT ONE INDEED SOME U. S. OFFICIALS BELIEVE THE JAPANESE ARE HANGING TOUGH BECAUSE THEY BELIEVE THAT THE U. S. IN THE END WILL ACCEPT A COSMETIC AGREEMENT RATHER THAN FACE A RUPTURE IN RELATIONS THAT'S ONE REASON THAT U. S. OFFICIALS ADOPTED A COMMON STRATEGY OF BANGING ON MR. HATA IF THE JAPANESE ACCEPT THAT THE U. S. IS FINALLY SERIOUS THEY BELIEVE THEY MAY MAKE LAST MINUTE CONCESSIONS THE DAY STARTED MORE PLEASANTLY AFTER AN EIGHT A. M. MEETING WITH MR. HATA TRADE REPRESENTATIVE KANTOR CALLED OFF A WEDNESDAY SUSPENSION OF TALKS MR. HATA INDICATED SOME FLEXIBILITY ON THE QUESTION OF NUMERICAL GOALS U. S. OFFICIALS SAID AT THE SAME TIME THE U. S. SIDE SEARCHED FOR SUBSTITUTES FOR THE TERM QUOTE QUANTITATIVE QUOTE INDICATORS WHICH IS CONTAINED IN AN EARLIER FRAMEWORK DOCUMENT BUT WHICH JAPAN TAKES AS FIGHTING WORDS THE JAPANESE COMPLAIN THAT THE U. S. WILL LATER INTERPRET SUCH INDICATORS AS FIRM COMMITMENTS AND TRY TO IMPOSE TRADE SANCTIONS IF JAPAN DOESN'T MEET THE NUMBERS FOR THEIR PART JAPANESE NEGOTIATORS WERE CHEERED BY RUMORS THAT THE U. S. WOULD SOON INTRODUCE A NEW PLAN BUT BY MIDDAY BOTH SIDES WERE GLUM JAPAN BALKED AT ANY PLAN THAT USED NUMBERS THE U. S. DIDN'T COME THROUGH WITH ANOTHER PLAN THE REST OF THE DAY WAS SPENT IN TEDIOUS RITUALISTIC NEGOTIATIONS IT ISN'T CLEAR WHETHER WE'LL HAVE ANY AGREEMENT AT ALL SAID A SENIOR U. S. NEGOTIATOR IN A SENTIMENT THAT WAS REFLECTED BY HIS JAPANESE COUNTERPARTS IN SOME WAYS THE TWO SIDES SEEMED TO BE PREPARING FOR A BREAKDOWN TODAY BY TRYING TO CONTAIN THE DAMAGE EACH EMPHASIZED THE FRIENDSHIP BETWEEN THE TWO COUNTRIES AND EXPRESSED HOPE THAT THE TRADE DISPUTE WOULDN'T POISON RELATIONS BUT NEGOTIATORS WEREN'T GIVING UP AND LEFT OPEN THE POSSIBILITY THAT SOME SORT OF BREAKTHROUGH COULD STILL BE ACHIEVED IN AN EFFORT TO STRENGTHEN MR. CLINTON'S NEGOTIATING POSITION IN HIS MEETING WITH MR. HOSOKAWA THE SENATE BANKING COMMITTEE YESTERDAY APPROVED A BILL DESIGNED TO OPEN FOREIGN MARKETS TO AMERICAN FINANCIAL COMPANIES THE FAIR TRADE IN FINANCIAL SERVICES ACT WHICH CONGRESS IS EXPECTED TO PASS QUICKLY WOULD GIVE THE U. S. NEW POWERS TO RETALIATE AGAINST BANKS INSURANCE COMPANIES AND BROKERAGE FIRMS FROM COUNTRIES THAT CLOSE THEIR MARKETS TO U. S. FIRMS THE BILL WOULD ALLOW THE U. S. TO BLOCK THE EXPANSION OF FOREIGN BANKS AND FINANCIALSERVICE COMPANIES IN THE U. S. IF THE TREASURY FINDS THAT THOSE FIRMS OPERATE FROM COUNTRIES THAT RESTRICT AMERICAN ACCESS TO THEIR MARKETS FEDERAL INDUSTRIES LIMITED WINNIPEG MANITOBA SAID IT EXPECTS TO RAISE EIGHTY FOUR MILLION CANADIAN DOLLARS SIXTY TWO POINT FIVE MILLION U. S. DOLLARS FROM THE SALE TO A GROUP OF UNDERWRITERS OF TEN MILLION CLASS A COMMON SHARES AT EIGHT CANADIAN DOLLARS AND FORTY CENTS SIX U. S. DOLLARS AND TWENTY FIVE CENTS A SHARE FEDERAL A TRANSPORTATION AND METALS DISTRIBUTION CONCERN HAS FORTY POINT NINE MILLION CLASS A SHARES OUTSTANDING IT SAID ABOUT FIFTY FIVE MILLION CANADIAN DOLLARS OF THE PROCEEDS FROM THE SALE WILL BE USED TO REDEEM ITS SEVEN AND ONE HALF PERCENT CUMULATIVE REDEEMABLE CONVERTIBLE CLASS TWO PREFERRED SHARES SERIES D. THE BALANCE WILL BE ADDED TO WORKING CAPITAL THE UNDERWRITING GROUP IS LED BY R. B. C. DOMINION SECURITIES INCORPORATED PEOPLE ALWAYS FIGURED ANDY SEYBOLD HAD A FUTURE IN RADIO AT AGE SEVEN HE STRETCHED A WIRE BETWEEN TWO TIN CANS AND RAN IT ACROSS SEVERAL VACANT LOTS TO ESTABLISH VOICE COMMUNICATIONS WITH A FRIEND'S HOUSE MORE THAN FIVE HUNDRED FEET AWAY LATER MUCH TO HIS PARENTS' DISMAY HE CANNIBALIZED PARTS FROM THE FAMILY T. V. TO BUILD A TRANSMITTER FOR HIS FIRST HAM RADIO IN PHILADELPHIA IN THE LATE NINETEEN SIXTIES HE BRIEFLY TOOK TO THE COMMERCIAL AIRWAVES UNDER THE NAME HERMAN J. FERTINWANGLER ROCK AND ROLL D. J. HE STARTED EVERY PROGRAM BY SPINNING QUOTE CHARLIE BROWN HE'S THAT CLOWN QUOTE FOLLOWED BY A TAPED RECORDING OF A TOILET FLUSHING MR. SEYBOLD'S OWN DREAMS OF A CAREER IN CONVENTIONAL RADIO EVENTUALLY WENT DOWN THE DRAIN BUT THROUGH A CURIOUS CHAIN OF EVENTS MR. SEYBOLD AT THE AGE OF FORTY SEVEN HAS HIT IT BIG IN A MODERN DAY HIGH TECH RADIO OFFSHOOT WIRELESS COMMUNICATIONS AND COMPUTING COMBINING TECHNICAL KNOW HOW AND A SHOWMAN'S FLAIR FOR SELF PROMOTION MR. SEYBOLD HAS POSITIONED HIMSELF AS ONE OF THE PRINCIPAL ENVANGELISTS OF THE DAWNING AGE OF MOBILE COMPUTING AND WIRELESS COMMUNICATIONS USING RADIO WAVES TO SEND DATA AND VOICE FROM SMALL PORTABLE DEVICES HIS MONTHLY NEWSLETTER ANDREW SEYBOLD'S OUTLOOK ON MOBILE COMPUTING IS DEVOURED BY TECHNO WONKS AND PRAISED BY TOP WIRELESS EXECUTIVES AT THE LIKES OF MOTOROLA INCORPORATED AND GENERAL ELECTRIC COMPANY AS A BULLHORN FOR GETTING THE WIRELESS GOSPEL OUT TO CONSUMERS SUCH COMPANIES AS APPLE COMPUTER INCORPORATED AND HEWLETT PACKARD COMPANY SOMETIMES SEND HIM PROTOTYPES OF THEIR LATEST WIRELESS GIZMOS SO HE CAN PLAY WITH THEM AND REPORT BACK ON ANY FLAWS HIS SEMINARS AND CONFERENCE APPEARANCES DRAW PACKED HOUSES HIS DAILY CONSULTING FEES NOW OCCASIONALLY APPROACH FIVE FIGURES IF THERE ARE ANY DOUBTS ABOUT THE SCOPE OF HIS INFLUENCE ON THE WIRELESS MOVEMENT JUST ASK HIM I HAVE A RARE COMBINATION OF EXPERTISE IN RADIO AND COMPUTERS THE TWIN AXES OF THE WIRELESS REVOLUTION MR. SEYBOLD RUMBLES IN A DEEP VOICE MADE GRAVELLY BY CIGARETTES THAT MAKES ME UNIQUE IN THIS ARENA IN FACT I AM A PROTOTYPICAL WIRELESS WARRIOR IS THIS A BUNCH OF HOT AIRWAVES WELL EVEN MR. SEYBOLD HIMSELF OCCASIONALLY INTERRUPTS CONVERSATIONS TO WARN LISTENERS THEY MUST SEPARATE EGO FROM REALITY SOME IN THE INDUSTRY DISMISS HIM AS A BLOWHARD OR WORSE ANDY IS A PAIN SAYS BOB RATLIFFE VICE PRESIDENT OF CORPORATE COMMUNICATIONS FOR MCCAW CELLULAR COMMUNICATIONS INCORPORATED WHICH HAS BEEN FEUDING WITH MR. SEYBOLD OVER HIS BLUNT CRITICISM OF AN AVANT GARDE CELLULAR PHONE TECHNOLOGY THAT MCCAW IS PROMOTING AS A POSSIBLE INDUSTRY STANDARD QUOTE HE'S STRICTLY A SELF PROCLAIMED WIRELESS GURU QUOTE MR. RATLIFFE SAYS WE'RE NOT IMPRESSED STILL TO A DEGREE RARE FOR A CONSULTANT CUM ANALYST CUM GADGETHEAD MR. SEYBOLD DOES APPEAR TO BE HELPING TO SHAPE THE DEVELOPMENT OF THE EMERGING WIRELESS DATA INDUSTRY ITS PRODUCTS ITS MARKETING STRATEGIES ITS FLEDGLING ATTEMPTS TO DEVELOP STANDARDIZED SYSTEMS RICHARD DUFOSSE DIRECTOR OF DEVELOPMENT FOR LOTUS DEVELOPMENT CORPORATION SAYS ANDY ISN'T IN THE ADVANCE GUARD OF WIRELESS HE IS THE ADVANCE GUARD OF WIRELESS MR. SEYBOLD DOESN'T TRY TO HIDE THE VINDICATION HE FEELS FROM THIS KIND OF RECOGNITION THE SEYBOLD FAMILY IS WELL KNOWN IN THE WORLD OF HIGH TECH CONSULTING AND NEWSLETTERS BUT UNTIL RECENTLY ANDY WAS CONSIDERED SOMETHING OF A BLACK SHEEP HIS FATHER JOHN TOOK UP HIGH TECH TINKERING IN HIS FORTIES DEVELOPED TECHNOLOGIES THAT LED TO TODAY'S COMPUTERIZED TYPESETTING AND STARTED SEVERAL NEWSLETTERS ANDY'S OLDER BROTHER JONATHAN AND HIS YOUNGER SISTER PATRICIA BOTH WERE PRECOCIOUS OVERACHIEVERS WHO YEARS AGO BECAME WEALTHY AND INFLUENTIAL THROUGH THEIR OWN HIGH TECH NEWSLETTERS AND CONSULTING BUSINESSES ANDY SEYBOLD HAS HAD A ROUGHER RIDE DYSLEXIC AND COLORBLIND HE STRUGGLED IN HIGH SCHOOL DROPPED OUT OF COLLEGE AND BECAME A HIGH TECH GYPSY WANDERING THROUGH JOBS MOSTLY IN ELECTRONICS MOSTLY AS A SALESMAN HE HAD SOME SUCCESSES HE HELPED DEVELOP SOME OF THE EARLIEST TWO WAY RADIOS FOR PARAMEDICS AND EMERGENCY PERSONNEL AND HE WAS AN EARLY DEVOTEE OF APPLE COMPUTERS AND CONSULTANT TO THE GARAGE BOUND STEVE JOBS BUT THEN A COMPUTER NEWSLETTER HE PUBLISHED SWOONED IN NINETEEN NINETY MR. SEYBOLD'S COMPANY FILED FOR BANKRUPTCY PROTECTION MEANWHILE FRICTION BETWEEN MR. SEYBOLD AND HIS BROTHER JONATHAN WHICH SOME FRIENDS AND FAMILY MEMBERS ATTRIBUTE TO BITTER SIBLING RIVALRY COMPOUNDED BY BUSINESS DISPUTES HAS LEFT THEIR RELATIONSHIP STRAINED TO THIS DAY INDEED THEY ARE FIGHTING IN COURT OVER THE USE OF THE SEYBOLD NAME ANDY SEEMS TO RESENT HOW EASILY THINGS CAME FOR OTHERS PARTICULARLY JONATHAN A FAMILY FRIEND SAYS HE'S ALWAYS WANTED TO DO SOMETHING TO PROVE TO THE WORLD THAT HE WAS JUST AS GOOD AS ANY OF THE SEYBOLDS WIRELESS CAME ALONG JUST IN TIME SHORTLY AFTER HIS COMPANY TANKED WHILE REGROUPING AS AN ANALYST FOR DATAQUEST INCORPORATED MR. SEYBOLD HAD THE VISION OF BECOMING THE WIRELESS WARRIOR AS HE NOW STYLES HIMSELF CELLULAR PHONES WERE ALREADY BECOMING WIDESPREAD AND WIRELESS LOCAL AREA NETWORKS HAD BEEN DEVELOPED BUT NOT MANY PEOPLE HAD GRASPED THE POTENTIAL FOR LINKING COMPUTERS AND TELECOMMUNICATIONS WIRELESSLY MR. SEYBOLD RECALLS QUOTE I SAW AN OPENING THERE QUOTE HE BEGAN INSERTING A SECTION ON MOBILE COMPUTING IN HIS REVIVED COMPUTER NEWSLETTER IN JUNE NINETEEN NINETY TWO AT THE START OF LAST YEAR THE STANDALONE MOBILE COMPUTING NEWSLETTER WAS BORN SINCE THEN FROM A MOUNTAIN LAIR DEEP IN THE REDWOOD COUNTRY EAST OF SANTA CRUZ MR. SEYBOLD HAS BEEN TRYING TO BECOME THE NEW WIRELESS MAN A RADIO TOWER AND A SATELLITE DISH PLANTED IN HIS YARD COAX DATA FROM THE ETHER THE SHELVES OF HIS SMALL OFFICE SPORT A HALF DOZEN CELLULAR PHONES AND WALKIE TALKIES IN VARIOUS STATES OF ASSEMBLY HE OPENS A DESK DRAWER TO REVEAL A HOST OF PORTABLE COMPUTERS THE FIFTEEN BY TWENTY FOOT OFFICE CONTAINS NO FEWER THAN SIX DESKTOP P. C.S BUT THOSE ARE HOOKED UP TO PHONE LINES HE WEARS HIS PAGER EVERY WAKING MINUTE AND KEEPS IT ON THE NIGHTSTAND WHEN HE SLEEPS A PALMTOP P. C. WITH RADIO MODEM WHICH SERVES AS A WIRELESS ELECTRONIC MAIL GADGET RARELY LEAVES HIS SIDE THE HOME'S HEATING SYSTEMS LIGHTS AND EVEN ITS COFFEE MAKER ARE CONTROLLED BY COMPUTER THOUGH ONLY PARTLY BY WIRELESS MEANS BECAUSE HE LAMENTS THE TECHNOLOGY TO DO MORE WITHOUT WIRES ISN'T HERE YET WHAT MR. SEYBOLD HAS DONE HERE ON THE MOUNTAINTOP REFLECTS HIS VISION OF WHAT WIRELESS COULD EVENTUALLY MEAN FOR PEOPLE SELF SUFFICIENCY FREEDOM FLEXIBILITY LIGHTING A CIGARETTE MR. SEYBOLD SAYS HE'S DOWN TO A PACK A DAY HE SAYS THE DAY WILL COME WHEN THE WIRELESS WARRIOR CAN BE ALMOST SELF CONTAINED SOMEDAY I'LL HAVE EVERYTHING I NEED TO WORK AND LIVE ON THIS MOUNTAINTOP AND IT WON'T HAVE ANY WIRES THINK OF IT BUT THAT DAY IS STILL DISTANT SOMETHING MR. SEYBOLD KNOWS AS WELL AS ANYONE THE TREES AND HILLS AROUND HIS HOUSE OFTEN JAM HIS CELLULAR PHONE SIGNALS AND PREVENT HIM FROM EVER HOOKING UP TO THE RAM MOBILE DATA WIRELESS DATA NETWORK WHICH HE HAS PRAISED IN HIS NEWSLETTER IT'S TERRIBLE HE MOANS HIS TALES OF MOBILE COMMUNICATIONS WOES FROM THE ROAD ARE LEGION AT A HOTEL IN ATLANTA HE ONCE WANDERED THE HALLS FOR HOURS MOBILE PHONE IN FRONT OF HIM LIKE A DOWSER'S WATER WAND TRYING TO FIGURE OUT WHICH ROOM WOULD HAVE THE STRONGEST RADIO SIGNAL SECURITY GUARDS THOUGHT HE MIGHT BE PLANTING A BOMB AND ALMOST THREW HIM OUT AT THE HILTON HOTEL IN SEOUL SOUTH KOREA DESPERATE TO FILE DATA FROM HIS LAPTOP AND UNABLE TO FIND A PROPER PHONE JACK MR. SEYBOLD FINALLY INSTALLED ONE HE HAD BROUGHT FROM HOME ON SUBSEQUENT TRIPS HE INSTALLED JACKS IN TWO OTHER ROOMS NOW WHEN I GO TO SEOUL I ASK FOR ONE OF THOSE THREE ROOMS HE SAYS QUOTE WORKS EVERY TIME QUOTE ON MANY OCCASIONS HE HAS SENT LARGE SECTIONS OF HIS NEWSLETTER AND OTHER DATA INTO OBLIVION BECAUSE OF MYSTERIOUS MOBILE COMPUTER MALFUNCTIONS AND IN PERHAPS HIS MOST GALLING MOMENT HE ONCE HAD TO CALL A REPORTER WHO WAS SEEKING COMMENT ABOUT A WIRELESS NEWS DEVELOPMENT FROM A PAY PHONE A PAY PHONE BECAUSE HE HAD LEFT HIS CELLULAR PHONE AT HOME THAT WAS EMBARRASSING HE RECALLS MR. SEYBOLD USES SUCH NIGHTMARES TO HELP CONVEY SOME OF HIS MAIN THEMES ABOUT WIRELESS AS WE NOW KNOW IT ONE IS A POINT THAT MR. SEYBOLD WHO BACK IN HIS HERMAN J. FERTINWANGLER DAYS WAS KNOWN FOR SUCH ON AIR PRANKS AS URGING LISTENERS TO GIVE TOLL BOOTH ATTENDANTS THE WRONG CHANGE DURING MORNING RUSH HOUR HAMMERS HOME WITH CARNIVAL FLAIR AT EVERY APPEARANCE HE LUGS OUT A BULKY SATCHEL PROCLAIMS THAT THIS IS WHAT YOU NEED TO BE MOBILE NOW AND PROCEEDS TO PULL OUT DOZENS OF GADGETS CABLES CONNECTORS AND POWER SOURCES THE EFFECT IS SOMETHING LIKE THE CIRCUS CAR THAT SPILLS OUT CLOWN AFTER CLOWN THE POINT IS THAT TODAY'S DEVICES STILL AREN'T VERY MOBILE HE SAYS INDEED MR. SEYBOLD ARGUES THAT MANY COMPANIES ARE FOCUSING TOO MUCH ON PIE IN THE SKY FUTURE WIRELESS TECHNOLOGIES WHEN THEY SHOULD BE PERFECTING TODAY'S DEVICES AND BUILDING MARKETS FOR WIRELESS TECHNOLOGY CLOSER TO HAND THINGS LIKE WIRELESS E. MAIL AND IMPROVED WIRELESS MODEMS THAT WILL ALLOW USERS TO MAKE WIRELESS CONNECTIONS BETWEEN THEIR PORTABLE DEVICES AND THEIR DESKTOP COMPUTERS WITHOUT RAPID PROGRESS IN SUCH AREAS MR. SEYBOLD SAYS THE WIRELESS MOVEMENT RISKS ALIENATING CONSUMERS WITH TOO MUCH HYPE ABOUT DAZZLING TECHNOLOGY THAT MAY NEVER PAN OUT USEFULNESS NOW THERE'S TOO MUCH FOCUS ON THE ONE DEVICE SCENARIO HE SAYS THE MOBILE COMPANION THAT DOES EVERYTHING PHONE E. MAIL COMPUTER FAX MOWS THE LAWN GETS YOU DATES THAT'S WAY DOWN THE LINE TO BUILD MARKETS AND KEEP CONSUMERS' ATTENTION QUOTE WE NEED PRODUCTS THAT PROVIDE USEFUL FUNCTIONALITY NOW QUOTE SOME PRODUCTS IN THE WIRELESS HERE AND NOW FIT THAT DESCRIPTION MR. SEYBOLD SAYS ONE EXAMPLE IS A NEW OFFERING FROM TRAVELING SOFTWARE INCORPORATED OF BOTHELL WASHINGTON AND NATIONAL SEMICONDUCTOR CORPORATION OF SANTA CLARA CALIFORNIA WHICH HAVE PACKAGED TRAVELING'S LAPLINK WIRELESS COMMUNICATIONS SOFTWARE AND NATIONAL SEMI'S AIRSHARE TRANSMITTER AND RECEIVER AND ARE SELLING THE COMBINATION AS A WIRELESS DOCKING STATION IT ALLOWS A PORTABLE COMPUTER TO COMMUNICATE WIRELESSLY WITH A COMPANION DESKTOP P. C. AUTOMATICALLY TRIGGERING ANY TRANSMISSIONS WHEN THE PORTABLE COMES WITHIN THIRTY FEET OF THE OTHER COMPUTER NO CABLES TO CONNECT NO LOGGING ON NO COMMANDS TO INPUT MR. SEYBOLD NOTES OTHER PRODUCTS MR. SEYBOLD IS HIGH ON INCLUDE SO CALLED P. C. MCIA MODEMS WIRELESS DEVICES ABOUT THE SIZE OF CREDIT CARDS THAT WILL SLIDE INTO SLOTS BEING BUILT INTO MANY NEW PORTABLE COMPUTERS AND E. MAIL DEVICES THESE MODEMS WHICH PROBABLY WON'T HIT THE MARKET FOR ANOTHER SIX MONTHS WILL REPLACE OUTBOARD MODEMS THAT ARE ABOUT THE SIZE OF A POCKET CELLULAR PHONE INTEL CORPORATION AND MEGAHERTZ CORPORATION OF SALT LAKE CITY HAVE HOT PROTOTYPES MR. SEYBOLD SAYS UNLESS COMPANIES COME UP WITH MORE PRACTICAL PRODUCTS LIKE THESE MR. SEYBOLD SAYS THE INDUSTRY COULD FACE WHAT HE CALLS THE DREADED NEWTON EFFECT AFTER APPLE'S MUCH BALLYHOOED PERSONAL DIGITAL ASSISTANT A PALM SIZED PEN CONTROLLED COMPUTER THE DEVICE'S HANDWRITING RECOGNITION SOFTWARE PROVED TO BE FLAWED AND ITS COMMUNICATIONS ABILITY NONEXISTENT WITHOUT EXPENSIVE ADD ONS THE NEWTON COULDN'T POSSIBLY LIVE UP TO THE HYPE APPLE PUT OUT ABOUT IT MR. SEYBOLD SAYS CONSUMERS FELT BETRAYED THINGS LIKE THAT WILL SET THE WIRELESS MOVEMENT BACK EVERY TIME QUOTE WILLIAM FREZZA DIRECTOR OF MARKETING AND BUSINESS DEVELOPMENT FOR ERICSSON G. E. MOBILE COMMUNICATIONS INCORPORATED A JOINT VENTURE OF G. E. AND TELEFON A. B. LM ERICSSON OF SWEDEN SAYS MR. SEYBOLD IS RIGHT ON TARGET WHAT HE'S SAYING IS THAT RIGHT NOW THE MARKET WE'RE AFTER IS NOT THE DEVICE IN EVERY HOUSEHOLD MARKET MR. FREZZA SAYS WE'RE AFTER THE WIRELESS ROAD WARRIOR THE BUSINESSPERSON WHO TRAVELS AND NEEDS TO STAY CONNECTED AND CAN'T LUG AROUND EIGHT SUITCASES FULL OF CABLES AND GEAR ANDY HAS HELPED DEFINE THAT MARKET OF COURSE NOT EVERYONE AGREES WITH MR. SEYBOLD'S ANALYSES THAT MAY BE PARTLY BECAUSE OF HOW HE SOMETIMES PRESENTS THEM TIM BAJARIN A FRIEND AND FELLOW CONSULTANT WHO HAS WORKED ON WIRELESS CONSULTING PROJECTS WITH MR. SEYBOLD SAYS SOME PEOPLE DON'T BUY THE MESSAGE BECAUSE THEY CAN'T STOMACH THE MESSENGER I HAVE SAT IN A ROOM WITH ANDY AND WATCHED HIM TELL A C. E. O. POINT BLANK THAT IS THE STUPIDEST THING I HAVE EVER HEARD MR. BAJARIN RECOUNTS THAT'S ANDY'S STYLE BUT SOME PEOPLE REJECT THE MESSAGE WHEN IT'S PUT TO THEM THAT WAY OTHER CLASHES ARE MORE SUBSTANTIVE IN HIS NEWSLETTERS AND SPEECHES MR. SEYBOLD FOR MONTHS HAS BLASTED MCCAW'S EFFORT TO ESTABLISH A CELLULAR NETWORK AROUND TECHNOLOGY KNOWN AS CELLULAR DIGITAL PACKET DATA OR CDPD THIS TECHNOLOGY IS MEANT TO OVERLAY EXISTING ANALOG CELLULAR PHONE NETWORKS ENABLING THEM TO TRANSMIT DIGITAL DATA OVER UNUSED RADIO CHANNELS ACCORDING TO MCCAW CDPD IS A MAJOR ADVANCE THAT ALLOWS INTEGRATED VOICE AND DATA TRANSMISSION OVER A SINGLE NETWORK PERMITTING CUSTOMERS TO USE ONE DEVICE FOR CALLING THEIR FRIENDS OR CALLING THEIR COMPUTERS MCCAW HAS POURED MORE THAN THREE HUNDRED MILLION DOLLARS INTO DEVELOPING IT PLANNED TO HAVE NEW YORK AND FOUR OTHER BIG CITIES UP AND RUNNING WITH CDPD TECHNOLOGY BY LAST MONTH AND HOPES TO ESTABLISH IT AS AN INDUSTRY STANDARD BUT MR. SEYBOLD SAYS THE TECHNOLOGY IS SO COMPLICATED THAT IT IS BOUND TO RUN INTO SNAGS AND DELAYS QUOTE IT'S MANY YEARS AWAY QUOTE HE ARGUES MOREOVER HE SAYS MCCAW'S HYPE ABOUT CDPD IS FREEZING THE MARKET LEADING POTENTIAL CUSTOMERS AND EVEN SOFTWARE DEVELOPERS TO HOLD OFF PURCHASING EQUIPMENT OR COMMITTING TO OTHER ALREADY AVAILABLE TECHNOLOGIES WHILE MCCAW TALKS UP CDPD IF IT FLOPS HE SAYS THE BACKLASH WILL BE TREMENDOUS IT IS A MEASURE OF MR. SEYBOLD'S WIRELESS CLOUT THAT CRAIG MCCAW MCCAW'S FOUNDER AND A WIRELESS TITAN HIMSELF HAS CALLED OR E. MAILED MR. SEYBOLD MANY TIMES TO DISCUSS HIS BROADSIDES AGAINST CDPD IN NOVEMBER MCCAW VICE PRESIDENT ROB MECHALEY INVITED MR. SEYBOLD FOR A PRIVATE DEMONSTRATION OF CDPD MR. SEYBOLD WAS DISINVITED WHEN HE INSISTED ON USING ELABORATE ELECTRONICS GEAR TO INVESTIGATE THE FIDELITY OF CDPD'S SIGNAL TRANSMISSION AND OTHER TECHNICAL MATTERS LATER THAT MONTH AT THE BIG COMDEX COMPUTER TRADE SHOW IN LAS VEGAS MR. MECHALEY INVITED MR. SEYBOLD INTO A PRIVATE TUTORIAL ON CDPD IT WAS A BRIEF MEETING MR. SEYBOLD IMMEDIATELY BEGAN TRASHING MCCAW'S PROMOTION OF CDPD AND ACCUSED MCCAW OF AMONG OTHER THINGS STEALING THE TECHNOLOGY YOU'VE GOT TO DEAL WITH THE GUY BECAUSE LIKE IT OR NOT HE'S INFLUENTIAL IN THE INDUSTRY SAYS MCCAW'S MR. RATLIFFE WHO ATTENDED THE MEETING BUT WE'RE NOT GOING TO PUT UP WITH CRAP LIKE THAT HE'S CONFRONTATIONAL AND AUTHORITARIAN AND HE'S GOT ALL THE SOCIAL SKILLS OF AN AX MURDERER TO WHICH MR. SEYBOLD RESPONDS QUOTE I HAVE NEVER MURDERED ANYONE WITH AN AX QUOTE SOME OF THE MORE SUCCESSFUL PRODUCTS IN MOBILE COMPUTING AND WIRELESS BEAR MR. SEYBOLD'S IMPRINT HEWLETT PACKARD INCORPORATED MANY OF HIS SUGGESTIONS FOR ITS NINETY FIVE L. X. PALMTOP P. C. INCLUDING FAX CAPABILITY AND RELATED FEATURES INTO ITS NEXT VERSION THE ONE HUNDRED L. X. BOTH MODELS WHICH HAVE SMALL KEYBOARDS CAN BE LINKED TO EXTERNAL WIRELESS MODEMS AND ARE POPULAR WITH BUSINESSPEOPLE AND PROFESSIONALS EAGER FOR WIRELESS POWER THEN THERE'S THE NEWSLETTER MR. SEYBOLD WON'T DISCLOSE SPECIFIC CIRCULATION FIGURES BUT SAYS THE MOBILE COMPUTING NEWSLETTER'S SUBSCRIPTIONS ROSE FOUR HUNDRED PERCENT IN THE FIRST ELEVEN MONTHS OF NINETEEN NINETY THREE AND ALREADY ECLIPSE THE SUBSCRIPTIONS OF HIS REVIVED GENERAL COMPUTING NEWSLETTER INDUSTRY OFFICIALS SAY HIS PRODUCT REVIEWS CAN MAKE OR BREAK COMPANIES AND PROVIDE INVESTORS WITH CLUES TO WINNERS AND LOSERS IN THE WIRELESS RACE HE WAS ONE OF THE EARLIEST ADVOCATES OF RADIOMAIL CORPORATION'S FAST GROWING WIRELESS POST OFFICE WHICH ALLOWS USERS TO TAP IN TO VIRTUALLY ALL OF TODAY'S DISPARATE WIRELESS DATA NETWORKS AND LINK UP WITH WIRED NETWORKS SUCH AS M. C. I. MAIL AND THE INTERNET HE ALSO WAS AN EARLY PREDICTOR OF INTERNATIONAL BUSINESS MACHINES CORPORATION'S DECLINE WHICH WAS AT LEAST PARTLY ATTRIBUTABLE TO BIG BLUE'S BIG BLOWOFF OF THE IMPLICATIONS OF MOBILE AND WIRELESS TRENDS WHEN I. B. M. STOCK WAS TRADING AT MORE THAN ONE HUNDRED DOLLARS A SHARE MR. SEYBOLD TOLD THE PEOPLE AT ONE CONFERENCE THAT THEY SHOULD PUT A BUY ORDER IN FOR I. B. M. AT FIFTY DOLLARS WHICH IS WHERE THE STOCK EVENTUALLY HEADED I. B. M. IS NOW A BIG BELIEVER IN WIRELESS COMPUTING BECOMING THE FIRST MANUFACTURER TO OFFER A PORTABLE COMPUTER WITH A CDPD MODEM MR. SEYBOLD'S LATEST PROJECT MAY TURN OUT TO BE HIS MOST IMPORTANT CONTRIBUTION YET TO WIRELESS HE CONCEIVED AND PULLED TOGETHER THE PORTABLE COMPUTER AND COMMUNICATIONS ASSOCIATION AN ORGANIZATION THAT INCLUDES ERICSSON G. E. INTEL LOTUS MICROSOFT CORPORATION MOTOROLA AND A DOZEN OTHER BIG NAMES IN HIGH TECH MCCAW IS NOT A MEMBER ITS MISSION IS TO HASH OUT OPEN STANDARDS FOR WIRELESS COMPUTING THAT WILL ENABLE DIFFERENT MANUFACTURERS' PRODUCTS TO TALK TO ONE ANOTHER THAT'S CONSIDERED CRUCIAL TO THE DEVELOPMENT OF A WIRELESS WORLD AS PRESIDENT OF THE PCCA MR. SEYBOLD STOWS HIS USUAL CONFRONTATIONAL BLUSTER HE SPENT MONTHS OF SHUTTLE DIPLOMACY CAJOLING THE ARCHRIVALS INTO COOPERATING ON THE PROJECT AT A RECENT MEETING AT A HOTEL NEAR THE SAN FRANCISCO AIRPORT AS A ROOMFUL OF TOP TECHNOLOGISTS NATTER ON ABOUT F. CLASS PARAMETERS AND X. TWENTY EIGHT VRES'S AND SUCH MR. SEYBOLD PRODS AND POKES ASKING A FEW QUESTIONS SUGGESTING A FEW SOLUTIONS TRYING HE SAYS TO KEEP THE PROCESS FROM BOGGING DOWN IN TECHNOBABBLE DURING A PARTICULARLY INTENSE HALF HOUR EXCHANGE BETWEEN MOTOROLA AND MICROSOFT EXECUTIVES ABOUT DIAL STRING MODIFIERS A FIRE ALARM GOES OFF ONLY MR. SEYBOLD SEEMS TO NOTICE BOUNDING INTO THE CORRIDOR TO DETERMINE THAT IT'S A FALSE ALARM AND TO GRAB A SMOKE WHATEVER COMES OF WIRELESS MR. SEYBOLD SEEMS TO HAVE BECOME ONE OF ITS EARLIEST WINNERS HE HAS MADE HIS MARK SOMETHING THAT DEEP DOWN I FIND REALLY SATISFYING HE SAYS BEING A SEYBOLD MY FAMILY ISN'T AN EASY ACT TO FOLLOW HE HAS ALSO MADE SOME MONEY AND HE HAS EVEN FOUND LOVE HE MET HIS SECOND WIFE LINDA OVER HAM RADIO FIVE YEARS AGO FOR MANY MONTHS THEIRS WAS A WIRELESS ROMANCE I KNEW THE VOICE BEFORE I EVER MET THE MAN RECALLS LINDA A LIFELONG HAM RADIO BUFF QUOTE IT WAS GRUFF BUT I KIND OF LIKED IT QUOTE MR. MCCOY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU MONEY MARKET MUTUAL FUND ASSETS CONTINUED TO DECLINE THIS WEEK FALLING FOUR POINT THREE NINE BILLION DOLLARS TO FIVE HUNDRED EIGHTY NINE POINT THREE ONE BILLION DOLLARS FROM A REVISED FIVE HUNDRED NINETY THREE POINT SEVEN OH BILLION DOLLARS FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF SIX HUNDRED FIFTY TWO RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY TWO POINT OH FOUR BILLION DOLLARS TO FOUR HUNDRED TWO POINT OH SEVEN BILLION DOLLARS THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF FOUR HUNDRED FIVE TAXABLE MONEY MARKET FUNDS INCREASED BY ONE POINT THREE FOUR BILLION DOLLARS TO THREE HUNDRED ELEVEN POINT THREE FOUR BILLION DOLLARS ASSETS OF TWO HUNDRED FORTY SEVEN RETAIL TAX EXEMPT FUNDS INCREASED BY SEVEN HUNDRED POINT SEVEN MILLION DOLLARS TO NINETY POINT SEVEN FOUR BILLION DOLLARS ASSETS OF THE TWO HUNDRED EIGHTY TWO INSTITUTIONAL MONEY MARKET FUNDS FELL BY SIX POINT FOUR THREE BILLION DOLLARS TO ONE HUNDRED EIGHTY SEVEN POINT TWO THREE BILLION DOLLARS AMONG INSTITUTIONAL FUNDS THE ASSETS OF TWO HUNDRED TWENTY EIGHT TAXABLE MONEY MARKET FUNDS DROPPED BY SIX POINT THREE NINE BILLION DOLLARS TO ONE HUNDRED SIXTY FOUR POINT FOUR FIVE BILLION DOLLARS ASSETS OF FIFTY FOUR TAX EXEMPT FUNDS FELL BY FORTY FIVE POINT THREE MILLION DOLLARS TO TWENTY TWO POINT SEVEN EIGHT BILLION DOLLARS THE PROVINCE OF ONTARIO AGREED TO DROP BASKETBALL FROM ITS SPORTS BETTING LOTTERY CLEARING THE WAY FOR A NATIONAL BASKETBALL ASSOCIATION FRANCHISE IN TORONTO TO MAKE UP FOR THE PROVINCE'S LOST GAMBLING REVENUE THE N. B. A. AND THE NEW FRANCHISE AGREED TO MAKE VARIOUS CONTRIBUTIONS TO CHARITABLE CAUSES SIMILAR TO THOSE THAT GOT FUNDS FROM THE LOTTERY PLANS FOR A PROFESSIONAL BASKETBALL TEAM IN TORONTO HAD BEEN ENDANGERED BECAUSE THE N. B. A. WON'T PERMIT FRANCHISES IN AREAS WHERE BETTING ON BASKETBALL IS LEGAL AND THE PROVINCIAL GOVERNMENT DIDN'T WANT TO GIVE UP ITS SPORTS BETTING REVENUE THE NEW TEAM WHICH HASN'T YET BEEN NAMED IS TO BEGIN PLAYING IN NINETEEN NINETY FIVE BASKETBALL WILL BE DROPPED FROM THE PROVINCE'S PRO LINE LOTTERY ON OCTOBER FIRST NINETEEN NINETY FIVE ACCORDING TO THE AGREEMENT THE TEAM WILL CONTRIBUTE FIVE MILLION CANADIAN DOLLARS THREE POINT SEVEN MILLION U. S. DOLLARS OVER THREE YEARS TO A NEW CHARITABLE FOUNDATION AND RAISE ONE MILLION CANADIAN DOLLARS ANNUALLY THEREAFTER THROUGH SUCH THINGS AS EXHIBITION GAMES THE N. B. A. WILL CONTRIBUTE ONE POINT FIVE MILLION CANADIAN DOLLARS TO ONTARIO HOSPITALS AND PROVIDE TWO MILLION CANADIAN DOLLARS IN T. V. TIME AND AD SPACE OVER FOUR YEARS TO PROMOTE TOURISM IN ONTARIO JOHN M. TETRO FORTY SEVEN YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THIS INSURANCE HOLDING COMPANY THIS IS AN ADDITIONAL POSITION FOR MR. TETRO WHO IS ALSO EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THE HOME INSURANCE COMPANY UNIT MR. TETRO SUCCEEDS JAN EVELAND WHO WILL BE RELOCATING TO EUROPE TO TAKE A JOB AT SWEDEN'S TRYGGHANSA SPP WHICH OWNS ABOUT SIXTY FOUR PERCENT OF HOME HOLDINGS SEPARATELY MARY A. TAYLOR FORTY FIVE WAS NAMED SENIOR VICE PRESIDENT CORPORATE COMMUNICATIONS AT HOME HOLDINGS A NEW POSITION SHE WILL CONTINUE TO HOLD THAT SAME TITLE AT THE UNIT ALSO LARRY WALTERS WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT INVESTOR RELATIONS MR. WALTERS FORTY FIVE WAS PREVIOUSLY A VICE PRESIDENT AT AMERICAN INTERNATIONAL GROUP INCORPORATED IN NEW YORK IF IT HASN'T ALREADY HAPPENED IT PROBABLY WILL YOU'RE GOING TO HAVE TO BUY ONE OF THESE THINGS BUT WHAT DO YOU LOOK FOR AND WHAT SHOULD YOU AVOID HERE'S A GUIDE TO BUYING A CELLULAR PHONE FIRST THINGS FIRST CELLULAR PHONES COME IN THREE BASIC STYLES QUOTE MOBILE QUOTE PERMANENT IN CAR MODELS WITH HIGH POWERED THREE WATT TRANSMITTERS QUOTE TRANSPORTABLE QUOTE PHONES THAT OFFER SIMILAR POWER BUT CAN BE CARRIED OUTSIDE THE CAR WITH A BATTERY PACK ABOUT THE SIZE AND WEIGHT OF A LARGE DICTIONARY AND TINY LOWER POWERED ABOUT A HALF WATT POCKET SIZE MODELS THE MOST POPULAR TYPE OF CELLULAR PHONE SOLD TODAY BUT THE LINES AREN'T RIGID MOST POCKET PHONES FOR INSTANCE CAN BE FITTED WITH A BRACKET AND HOOKED INTO THE CONVENTIONAL CAR PHONE TRANSCEIVER THAT GIVES A USER A MORE POWERFUL PHONE WHILE DRIVING AND KEEPS THE POCKET PHONE'S BATTERY FROM RUNNING DOWN BATTERIES IN CAR PHONES USE A CAR'S ALTERNATOR AND BATTERY FOR POWER TRANSPORTABLE PHONES WHEN TAKEN AWAY FROM THE CAR USE A POWERFUL BATTERY PACK BUT BECAUSE A POCKET PHONE CONTAINS ITS OWN TRANSCEIVER IN THE HANDSET IT REQUIRES TINY BATTERIES NICKEL CADMIUM IN OLDER MODELS AND SMALLER MORE POWERFUL NICKEL METAL HYDRIDE BATTERIES IN THE NEWER PHONES WHAT'S IT FOR NOW THAT YOU KNOW WHAT KINDS OF PHONES ARE AVAILABLE YOU HAVE TO ASK YOURSELF WHY DO YOU WANT ONE ANYWAY DO YOU HAVE A LONG DRIVE TO AND FROM WORK BUT SPEND MOST OF THE DAY IN AN OFFICE IF SO YOU MAY WANT A PERMANENT PHONE INSTALLED IN YOUR CAR MOST NEW USERS HOWEVER ARE USING THEIR PHONES AS A CONVENIENT COMMUNICATOR A PAY PHONE SUBSTITUTE WHEN YOU'RE IN A MALL OR ON A STREET CORNER AND YOU NEED TO CALL HOME OR WORK QUICKLY A SMALL POCKET PHONE IS MORE THAN UP TO THE JOB THE DECISION ALSO DEPENDS ON WHERE YOU LIVE AND WORK FOR THOSE IN RURAL AREAS WHERE TRANSMISSION COVERAGE ISN'T VERY GOOD A POWERFUL TRANSPORTABLE PHONE MAY BE NECESSARY IT MAY NOT FIT IN YOUR POCKET BUT THE PHONE'S BATTERY WILL HAVE THE POWER TO REACH THE NEAREST CELLULAR TOWER AS WELL AS TO OPERATE OVER EXTENDED PERIODS TALK TIME PORTABLE PHONES ARE ONLY AS GOOD AS THEIR TALK TIME THAT IS HOW LONG YOU CAN ACTUALLY TALK ON THE PHONE BEFORE THE BATTERY DIES BUYERS ALSO SHOULD LOOK CAREFULLY AT STANDBY TIME WHICH IS HOW LONG THE PHONE CAN BE LEFT ON TO ACCEPT CALLS BEFORE NEEDING A RECHARGE TODAY THE AVERAGE TALK TIME IS ABOUT TWO HOURS ON THE BETTER PHONES WITH ABOUT EIGHTEEN HOURS OF STANDBY TIME SOME EXTENDED LIFE BATTERIES OFFER UP TO ONE HUNDRED SIXTY MINUTES OF TALK TIME AND COMING SOON JAPANESE MODELS WITH LITHIUM ION BATTERIES THAT OFFER FIFTEEN PERCENT MORE TALK TIME THAN TODAY'S MOST POWERFUL POCKET MODELS GIMMICKS UNLIKE THE BRICK SIZE PHONES SEEN IN CELLULAR'S EARLY YEARS TODAY'S MODELS ARE SLEEK AND COME WITH A VAST ARRAY OF FEATURES MOST PHONES HAVE LITTLE CALCULATOR TYPE SCREENS TO SHOW THE NUMBER THAT IS BEING CALLED THE SCREEN WILL ALSO WARN ABOUT A LOW BATTERY BEFORE YOUR CALL CONKS OUT THE BETTER CAR PHONES ALSO PERMIT HANDS FREE OPERATION THROUGH VOICE ACTIVATED DIALING SAY MOM AND IT DIALS HER NUMBER AND A SPEAKERPHONE DIGITAL A SMALL NUMBER OF NEW PHONES OPERATE ON THE NEW DIGITAL NETWORKS WHICH SOME CARRIERS HAVE BEGUN INSTALLING TO REPLACE THEIR OLDER ANALOG NETWORKS THE NEW PHONES WORK IN BOTH MODES AND ARE THEREFORE KNOWN AS DUAL MODE PHONES IN THE LONG RUN THE NEW DIGITAL NETWORKS WILL HANDLE A GREATER NUMBER OF CALLS MAKING IT MORE LIKELY THAT A CALL WILL GET THROUGH ON THE FIRST TRY DIGITAL WILL ALSO GIVE USERS A CLEARER SOUND AND GREATER PRIVACY SINCE DIGITAL PULSES ARE HARD TO TAP BUT THE NEW DIGITAL NETWORKS ARE EXPERIENCING SOME START UP BUGS INCLUDING SOME NOISE PROBLEMS SO TO ENCOURAGE USERS TO GO DIGITAL SOME CARRIERS SUCH AS MCCAW CELLULAR COMMUNICATIONS INCORPORATED OF KIRKLAND WASHINGTON ARE OFFERING DISCOUNTS AS DEEP AS TWENTY PERCENT ON PER MINUTE CHARGES FOR DIGITAL CALLS PICKING A CARRIER THIS IS PRETTY SIMPLE EACH MARKET HAS AN A CARRIER AND A B. CARRIER THE QUOTE A QUOTE CARRIER IS AN INDEPENDENTLY OWNED NETWORK SUCH AS THE CELLULAR ONE NETWORK RUN BY MCCAW IN THE NEW YORK CITY AREA THE B. CARRIER IS OWNED BY THE SAME COMPANY THAT OFFERS REGULAR LOCAL PHONE SERVICE IN THAT AREA YOUR DEALER WILL ELECTRONICALLY PROGRAM YOUR PHONE TO OPERATE ON THE NETWORK WITH WHICH IT IS AFFILIATED HOW DO YOU PICK BETWEEN THE TWO THE SAME WAY YOU WOULD BETWEEN COMPETING LONG DISTANCE CARRIERS COMPARE PRICE AND QUALITY AND THEN GUESS COST REMEMBER IT'S A BUYER'S MARKET JUST ABOUT EVERY CONSUMER ELECTRONICS DEALER IS OFFERING FAT DISCOUNTS ON CELLULAR PHONES AND THANKS TO CARRIER SUBSIDIES TO SPUR USAGE POCKET PHONES NOW GO FOR BETWEEN FIFTY DOLLARS AND EIGHT HUNDRED DOLLARS OCCASIONALLY A CARRIER WILL OFFER FREE PHONES IN EXCHANGE FOR A LONG TERM SERVICE CONTRACT SAY FOR THREE MONTHS TO A YEAR IF YOU STOP SERVICE EARLY YOU PAY A PENALTY CALIFORNIA IS THE ONLY STATE THAT DOESN'T ALLOW THIS BUNDLING EVEN SO YOUR PHONE BILL WILL GET A LOT FATTER WITH A CELLULAR PHONE THE PRICE CUTS HAWKED IN DAILY NEWSPAPER ADS AND ON TELEVISION FOR EXAMPLE DON'T INCLUDE INSTALLATION CHARGES FOR IN CAR PHONES THOSE CAN RUN AN EXTRA TWO HUNDRED DOLLARS TO THREE HUNDRED DOLLARS MANY ADS ALSO DON'T MENTION PLENTY OF OTHER FEES CARRIERS CHARGE ONE TIME SERVICE ACTIVATION FEES THAT CAN RUN MORE THAN ONE HUNDRED DOLLARS IF YOU ALREADY OWN A PHONE AND WANT TO ORDER SERVICE FOR MOST SALES THAT INCLUDE PHONES HOWEVER CARRIERS USUALLY WAIVE THIS CHARGE YOU ALSO WILL HAVE TO COUGH UP A MONTHLY PAYMENT OF UP TO THIRTY DOLLARS FOR NETWORK ACCESS SO EVEN IF YOU DON'T USE YOUR PHONE YOU WILL STILL PAY ABOUT THREE HUNDRED SIXTY DOLLARS A YEAR THEN THERE ARE THE CHARGES FOR ACTUALLY TALKING ON THE PHONE THE PRICE CHANGES DEPENDING UPON THE TIME OF DAY CALLS DURING PEAK HOURS CAN COST AS MUCH AS EIGHTY CENTS PER MINUTE EXCLUDING A SEPARATE EXTRA CHARGE IF THE CALL IS LONG DISTANCE OFF PEAK USAGE COSTS AS LITTLE AS TEN CENTS A MINUTE SOMETIMES A CARRIER WILL THROW IN FREE CALLING DURING CERTAIN PERIODS AND REMEMBER IN ALMOST ALL MARKETS YOU PAY FOR CALLS YOU RECEIVE AS WELL AS THE ONES YOU MAKE THE UPSHOT CELLULAR PHONE CUSTOMERS SPEND ON AVERAGE BETWEEN SIXTY DOLLARS AND SEVENTY DOLLARS A MONTH ACCORDING TO VARIOUS ANALYSTS' ESTIMATES THIS INCLUDES THE MONTHLY ACCESS FEE AS WELL AS LONG DISTANCE CHARGES WHICH ARE HANDLED BY REGULAR CARRIERS SUCH AS AMERICAN TELEPHONE AND TELEGRAPH COMPANY LIKE REGULAR PHONE SERVICE YOU DESIGNATE YOUR LONG DISTANCE CARRIER WHEN YOU SIGN UP FOR CELLULAR SERVICE MANY USERS SAY THESE BILLS ARE A SMALL PRICE TO PAY FOR THE CONVENIENCE FOR OTHERS THOUGH THEY ONLY MAKE THE PAY PHONE ON THE CORNER LOOK LIKE A BARGAIN AFTER ALL MR. KELLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU SHARES OF BRODERBUND SOFTWARE INCORPORATED ROSE TWENTY TWO PERCENT IN THE THREE DAYS OF TRADING PRECEDING ITS ANNOUNCED ACQUISITION BY ELECTRONIC ARTS INCORPORATED LEADING SOME ANALYSTS TO ASSERT THAT INSIDE INFORMATION ABOUT THE DEAL HAD LEAKED OUT ELECTRONIC ARTS A SAN MATEO CALIFORNIA MAKER OF COMPUTER AND VIDEO GAMES DISCLOSED ITS AGREEMENT TO BUY BRODERBUND FOR FIFTEEN POINT FOUR MILLION SHARES OF ITS STOCK AFTER CLOSE OF TRADING WEDNESDAY THAT DAY BRODERBUND CLOSED AT FORTY ONE DOLLARS AND TWENTY FIVE CENTS IN NATIONAL STOCK MARKET TRADING UP THREE DOLLARS AND SEVENTY FIVE CENTS FROM THE PREVIOUS DAY AND UP SEVEN DOLLARS AND FIFTY CENTS FROM FRIDAY'S CLOSE WERTHEIM SCHRODER AND COMPANY ANALYST ALFRED TOBIA JUNIOR SAID WEDNESDAY'S RISE IN BRODERBUND STOCK MAY HAVE FORCED THE COMPANY AND ELECTRONIC ARTS TO ANNOUNCE THE MERGER SOONER THAN PLANNED INVESTORS QUOTE OBVIOUSLY GOT WIND OF WHAT WAS GOING ON QUOTE HE SAID ANOTHER ANALYST WHO REQUESTED ANONYMITY ALSO SAID BUYING ON WEDNESDAY WAS BASED ON A RUMOR OF A PENDING ACQUISITION OF BRODERBUND THE STOCK DEAL WAS VALUED AT FOUR HUNDRED MILLION DOLLARS OR FORTY ONE DOLLARS AND SIXTY SEVEN CENTS A SHARE TO BRODERBUND SHAREHOLDERS ON THE BASIS OF WEDNESDAY'S CLOSE YESTERDAY ELECTRONIC ARTS' STOCK JUMPED THREE DOLLARS AND FIFTY CENTS TO TWENTY NINE DOLLARS GIVING THE DEAL A VALUE OF FORTY SIX DOLLARS AND FIFTY SIX CENTS A SHARE TO BRODERBUND HOLDERS BRODERBUND CLOSED AT FORTY FIVE POINT EIGHT SEVEN FIVE DOLLARS UP FOUR POINT SIX TWO FIVE DOLLARS IN NASDAQ STOCK MARKET TRADING BRODERBUND SAID IT DIDN'T KNOW OF ANY REASON WHY ITS STOCK ROSE BEFORE THE ANNOUNCEMENT ALTHOUGH A SPOKESWOMAN SAID ANALYSTS RECENTLY HAD MADE SOME FAVORABLE COMMENTS ABOUT THE COMPANY HAMBRECHT AND QUIST PUT OUT A REPORT ON THE EDUCATIONAL SOFTWARE INDUSTRY WEDNESDAY THAT MIGHT HAVE HAD SOME EFFECT ON BRODERBUND'S STOCK PRICE THE REPORT WAS GENERALLY POSITIVE BUT VOICED SOME CAUTION INCLUDING CONCERN ABOUT INCREASED COMPETITION SAID ANALYST TODD BAKAR IN CONJUNCTION WITH THAT REPORT HAMBRECHT AND QUIST UPGRADED ITS RECOMMENDATION ON BRODERBUND'S STOCK TO HOLD FROM UNDERPERFORM LAST THURSDAY ROBERTSON STEPHENS AND COMPANY REITERATED A BUY RECOMMENDATION ON BRODERBUND STOCK A SPOKESMAN FOR THE SECURITIES AND EXCHANGE COMMISSION IN WASHINGTON WOULDN'T COMMENT ON WHETHER THE AGENCY WILL LOOK INTO REASONS FOR THE STOCK'S RISE LEE ISGUR OF VOLPE WELTY AND COMPANY SAID A RUMOR THAT BRODERBUND WILL MAKE PRODUCTS USING DOCTOR SEUSS CHARACTERS COULD HAVE BOOSTED THE STOCK PRICE A BRODERBUND SPOKESWOMAN SAID THE COMPANY HASN'T MADE ANY SUCH ANNOUNCEMENT THE DEAL BETWEEN ELECTRONIC ARTS AND BRODERBUND WOULD CREATE ONE OF THE LARGEST CONSUMER SOFTWARE VENDORS SERVING THE HOME EDUCATION AND ENTERTAINMENT MARKETS THE COMBINED COMPANY WILL COMPETE AGAINST REDMOND WASHINGTON BASED MICROSOFT CORPORATION'S HOME SOFTWARE UNIT AND ACCLAIM ENTERTAINMENT INCORPORATED OYSTER BAY. N. Y. THE PROPOSED DEAL GIVES ELECTRONIC ARTS A STRONG PRESENCE IN THE EDUCATION MARKET WHERE IT HAS STRUGGLED AND OFFERS BRODERBUND THE CHANCE TO EXPAND THROUGH ELECTRONIC ARTS' STRONG DISTRIBUTION NETWORK WE INTEND TO BE A WORLD WIDE SOFTWARE COMPANY SAID WILLIAM MCDONAGH BRODERBUND'S CHIEF FINANCIAL OFFICER THE BATTLE IS GOING TO BE FOR SHELF SPACE SAID ANDREW BROSSEAU OF COWEN AND COMPANY BETTY LYTER OF MONTGOMERY SECURITIES SAID SHE EXPECTS COMPANIES WITH SOLID DISTRIBUTION SUCH AS ELECTRONIC ARTS ACCLAIM AND DAVIDSON AND ASSOCIATES INCORPORATED OF TORRANCE CALIFORNIA TO CONSIDER ACQUIRING SUCH COMPANIES AS SIERRA ON LINE INCORPORATED BELLEVUE WASHINGTON WHICH ONCE ALMOST MERGED WITH BRODERBUND SOFTWARE TOOLWORKS INCORPORATED NOVATO CALIFORNIA AND LEARNING COMPANY FREMONT CALIFORNIA DAVID READERMAN OF LEHMAN BROTHERS ESTIMATES THE COMBINED COMPANIES WILL POST EARNINGS OF NINETY THREE CENTS A SHARE ON REVENUE OF FIVE HUNDRED EIGHTEEN MILLION DOLLARS FOR THE FISCAL YEAR ENDING IN MARCH FOR THE NINETEEN NINETY FIVE FISCAL YEAR HE ESTIMATES EARNINGS OF ONE DOLLAR AND TWENTY FIVE CENTS A SHARE ON REVENUE OF SIX HUNDRED SEVENTY SEVEN MILLION DOLLARS MR. READERMAN DOUBTED MICROSOFT WOULD BID FOR BRODERBUND BECAUSE QUOTE THEY ALREADY HAVE MORE PEOPLE IN HOME SOFTWARE RESEARCH AND DEVELOPMENT THAN IN THE ENTIRE COMPANY OF BRODERBUND QUOTE WITH FEW OTHER PLAYERS IN THE EDUCATIONAL AND ENTERTAINMENT SOFTWARE MARKETS BIG ENOUGH TO ACQUIRE BRODERBUND OTHER OFFERS WOULD HAVE TO COME FROM OUTSIDE THE SOFTWARE INDUSTRY HE SAID ANALYSTS MENTIONED WALT DISNEY COMPANY PARAMOUNT COMMUNICATIONS AND ADVANCE PUBLICATIONS INCORPORATED'S RANDOM HOUSE WITH WHICH BRODERBUND HAS AN AGREEMENT FOR A VENTURE IN CHILDRENS' SOFTWARE AS POSSIBILITIES A BRODERBUND SPOKESWOMAN SAID NO OTHER SUITORS ARE CURRENTLY COURTING THE COMPANY ADAC LABORATORIES SAID IT ACQUIRED THE NUCLEAR MEDICINE PATENT PORTFOLIO OF PHILIPS MEDICAL SYSTEMS A UNIT OF PHILIPS ELECTRONICS N. V. TERMS WEREN'T DISCLOSED THE COMPANY SAID THE PORTFOLIO CONSISTS OF THIRTEEN U. S. PATENTS AND FIFTY SIX FOREIGN PATENTS AND PATENT APPLICATIONS ADAC SAID PHILIPS'S DIVESTMENT OF ITS NUCLEAR MEDICINE PORTFOLIO IS CONSISTENT WITH ITS QUOTE LONG TERM STRATEGIC PLAN TO STREAMLINE ITS PRODUCT OFFERINGS QUOTE PINNACLE MICRO INCORPORATED EXPECTS TO REPORT FOURTH QUARTER NET INCOME OF BETWEEN TEN CENTS AND TWELVE CENTS A SHARE ON SALES OF ABOUT ELEVEN MILLION DOLLARS BRADLEY T. NIELSON VICE PRESIDENT FINANCE SAID MR. NIELSON SAID THE COMPANY LIKELY WILL HAVE FINANCIAL RESULTS OUT NEXT WEEK HE WAS INTERVIEWED WITH WILLIAM F. BLUM PRESIDENT AND CHIEF EXECUTIVE OFFICER AND SCOTT A. BLUM EXECUTIVE VICE PRESIDENT MR. NIELSON ADDED THAT PINNACLE MICRO A MAKER OF OPTICAL STORAGE DRIVES FOR COMPUTERS QUOTE IS ON TARGET AS MUCH AS I CAN PREDICT AT THIS POINT QUOTE WITH WHAT HE SAID ARE ANALYSTS' ESTIMATES THAT FIRST QUARTER NET INCOME WILL TOTAL ABOUT TEN CENTS A SHARE THE NINETEEN NINETY THREE FOURTH QUARTER RESULTS WERE LIKEWISE IN LINE WITH ANALYSTS' EXPECTATIONS FOR THE COMPANY MR. NIELSON SAID MR. NIELSON SAID PROFITS CURRENTLY ARE SOMEWHAT CONSTRAINED BY A LINEUP OF NEW PRODUCTS THAT THE COMPANY IS BRINGING TO MARKET INCLUDED IN THAT LINEUP IS AN AMBITIOUS NEW OPTICAL DISK STORAGE PRODUCT DESIGNED TO CHALLENGE THE SPEED AND EFFICIENCY OF CURRENT MAGNETIC DISK STORAGE DEVICES BUT WITH FAR MORE CAPACITY SCOTT BLUM SAID ALSO THE MEN SAID A PRODUCT CHANGEOVER HAS GONE WELL FOR THE COMPANY'S NEW SIERRA ONE POINT THREE GIGABYTE DRIVES WHICH SUPPLANTED PINNACLE MICRO'S OLDER PMO SIX HUNDRED FIFTY WITH HALF THE CAPACITY STARTING LATE THIS FALL THEY SAID UNIT SHIPMENTS ALREADY ARE RIVALING THOSE OF THE EARLIER MODEL WHICH HAS BEEN PHASED OUT A GIGABYTE IS ONE BILLION BYTES THE ESTIMATE OF FOURTH QUARTER NET INCOME OF TEN TO TWELVE CENTS A SHARE COMPARES WITH NET INCOME OF FIVE HUNDRED FORTY SEVEN THOUSAND DOLLARS OR FOURTEEN CENTS A SHARE ON SALES OF SEVEN POINT EIGHT MILLION DOLLARS A YEAR EARLIER WHEN PINNACLE MICRO WAS CLOSELY HELD THE COMPANY'S STOCK BEGAN TRADING PUBLICLY ON JULY FIRST NINETEEN NINETY THREE WITH AN INITIAL PUBLIC OFFERING OF ONE POINT SIX MILLION COMMON SHARES THE WEIGHTED AVERAGE SHARES OUTSTANDING IN THE NINETEEN NINETY THREE FOURTH QUARTER TOTALED FIVE POINT TWO MILLION COMPARED WITH THREE POINT NINE MILLION A YEAR EARLIER PINNACLE MICRO EXPECTS TO ABOUT DOUBLE RESEARCH AND DEVELOPMENT OUTLAYS THIS YEAR COMPARED WITH NINETEEN NINETY THREE LEVELS MR. NIELSON SAID R. H. MACY AND COMPANY SAYING IT HAS MADE SIGNIFICANT PROGRESS WHILE OPERATING UNDER FEDERAL BANKRUPTCY PROTECTION AGAINST CREDITORS ASKED THE BANKRUPTCY COURT FOR SIX MORE MONTHS TO COME UP WITH ITS OWN CHAPTER ELEVEN REORGANIZATION PLAN THE DEPARTMENT STORE RETAILER OPERATING UNDER BANKRUPTCY COURT PROTECTION SINCE NINETEEN NINETY TWO SAID IT PLANS TO QUOTE PURSUE THE DEVELOPMENT QUOTE OF A REORGANIZATION PLAN TO PRESENT TO CREDITORS AND THE COURT BEFORE SEPTEMBER FIFTEENTH ACCORDING TO THE MOTION FILED WITH THE U. S. BANKRUPTCY COURT IN NEW YORK THE FILING SIGNALS MACY IS CLOSE TO FINALLY EMERGING FROM BANKRUPTCY PROCEEDINGS AS A LEANER ORGANIZATION UNDER THE EXCLUSIVITY PERIOD THAT IS SCHEDULED TO END MARCH FIFTEENTH ONLY MACY CAN OFFER A PLAN OF REORGANIZATION AFTER THIS PERIOD ITS CREDITORS AND OTHERS INCLUDING UNWANTED SUITOR FEDERATED DEPARTMENT STORES INCORPORATED COULD PROPOSE REORGANIZATION PLANS TO THE COURT JUDGE BURTON LIFLAND WHO IS SCHEDULED TO CONSIDER MACY'S MOTION AT A HEARING FEBRUARY TWENTY SECOND IS EXPECTED TO APPROVE THE MOVE MYRON E. ULLMAN THE THIRD MACY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE EXTENSION IS NECESSARY SO MACY'S CAN CONTINUE NEGOTIATIONS WITH CREDITOR GROUPS AND WORK OUT A CONSENSUAL PLAN OF REORGANIZATION THAT PROVIDES A FAIR RECOVERY FOR ALL OF OUR CREDITORS MACY NOTED IN THE FILING THAT WHILE IT NARROWED THE COMPANY'S NET LOSSES FOR THE FISCAL YEAR ENDED JULY THIRTY FIRST NINETEEN NINETY THREE TO FIVE HUNDRED FORTY FOUR MILLION DOLLARS FROM ONE POINT TWO FIVE BILLION DOLLARS THE YEAR BEFORE THERE REMAINS MUCH TO BE DONE INCLUDING NEGOTIATING THE REORGANIZATION PLAN WITH EIGHT MAJOR CREDITOR GROUPS CURRENTLY MACY OWES ITS CREDITORS A TOTAL OF ABOUT SIX BILLION DOLLARS MACY WHICH OPERATES ONE HUNDRED ELEVEN MACY'S AND BULLOCK'S DEPARTMENT STORES IS CURRENTLY FENDING OFF FEDERATED WHICH LAST MONTH ACQUIRED A CHUNK OF MACY SECURED DEBT AND SAID IT WANTS TO MERGE WITH MACY MACY SAID THAT WITHOUT AN EXTENDED EXCLUSIVITY PERIOD THE POTENTIAL FOR THE PROPOSAL OF COMPETING PLANS MIGHT WELL LEAD TO UNNECESSARY ADVERSARIAL CONFRONTATIONS THAT MIGHT CAUSE A DETERIORATION IN THE VALUE OF THE ASSETS AND BUSINESS OF MACY'S TELEFON A. B. L. M. ERICSSON REPORTED BETTER THAN EXPECTED FOURTH QUARTER PRETAX PROFIT BUT ONCE AGAIN SAW ITS STOCK PLUNGE IN INTERNATIONAL MARKETS IN TRADING IN STOCKHOLM ERICSSON'S B. SHARES FELL FIVE KRONOR SIXTY TWO CENTS TO THREE HUNDRED FIFTY SIX KRONOR IN THE U. S. ERICSSON'S AMERICAN DEPOSITARY RECEIPTS CLOSED AT FORTY TWO POINT THREE SEVEN FIVE DOLLARS DOWN TWO DOLLARS AND SEVENTY FIVE CENTS IN NASDAQ STOCK MARKET TRADING IN NOVEMBER THE SWEDISH TELECOMMUNICATIONS CONCERN REPORTED A NINEFOLD SURGE IN THIRD QUARTER PRETAX PROFIT BUT U. S. INVESTORS RESPONDED BY STRIPPING FOURTEEN PERCENT OFF THE STOCK PRICE IN TURBULENT TRADING ONCE AGAIN THE CULPRIT SEEMS TO BE BLOATED PROFIT PROJECTIONS AMONG ANALYSTS QUOTE THIS WAS A GOOD RESULT FOR ERICSSON COMPARED TO RIVALS SUCH AS SIEMENS A. G. AND ALCATEL N. V. QUOTE ONE LONDON TELECOMMUNICATIONS ANALYST MUSED BUT IT'S ALL ABOUT INFLATED EXPECTATIONS ALCATEL IS A UNIT OF ALCATEL ALSTHOM S. A. IN THE FOURTH QUARTER PRETAX PROFIT ROSE FIVE PERCENT TO ONE POINT TWO FIVE BILLION KRONOR FROM ONE POINT ONE EIGHT BILLION KRONOR A YEAR EARLIER THAT INCREASE WAS ACHIEVED DESPITE AN UNUSUALLY STRONG YEAR EARLIER PERIOD AND A THREE HUNDRED FIVE MILLION KRONA WRITE OFF OF GOODWILL STEMMING FROM AN ACQUISITION ERICSSON OFFICIALS DECLINED TO IDENTIFY EFFECTS OF THE SHARP DEPRECIATION OF SWEDISH CURRENCY SINCE NOVEMBER NINETEEN NINETY TWO HADN'T PREVIOUSLY AFFECTED THE COMPANY'S PROFIT BUT EXPIRATION OF MOST REMAINING HEDGING CONTRACTS ADDED AN ESTIMATED TWO HUNDRED MILLION KRONOR IN CURRENCY GAINS TO THE LATEST PERIOD'S PROFIT OFFICIALS SAID FULL YEAR PRETAX PROFIT MORE THAN DOUBLED TO THREE POINT ONE BILLION KRONOR FROM ONE POINT THREE ONE BILLION THE PREVIOUS YEAR SQUARELY IN LINE WITH THE COMPANY'S FORECAST IN A GUARDED PREDICTION FOR THE CURRENT YEAR ERICSSON CHIEF EXECUTIVE LARS RAMQVIST SAID EARNINGS ARE EXPECTED TO INCREASE BUT STRESSING THAT THE FOURTH QUARTER WAS AS USUAL SEASONALLY STRONG MR. RAMQVIST WARNED ANALYSTS NOT TO SIMPLY MULTIPLY THIS LATEST QUARTER BY FOUR AS AN ESTIMATE OF NINETEEN NINETY FOUR PROFIT THAT COMMENT SUGGESTS NINETEEN NINETY FOUR PRETAX PROFIT OF ABOUT FOUR POINT FIVE BILLION KRONOR ANALYSTS SAID ERICSSON SAID SALES CLIMBED TWENTY ONE PERCENT IN THE FOURTH QUARTER TO TWENTY POINT FOUR NINE BILLION KRONOR AND THIRTY FOUR PERCENT FOR THE FULL YEAR TO SIXTY TWO POINT NINE BILLION KRONOR ORDERS INCREASED SEVENTEEN PERCENT TO EIGHTEEN POINT THREE NINE BILLION KRONOR DURING THE FOURTH QUARTER AND TWENTY SEVEN PERCENT FOR THE FULL YEAR TO SIXTY SEVEN POINT SIX BILLION KRONOR CURRENCY FLUCTUATIONS ACCOUNTED FOR ABOUT TWENTY PERCENTAGE POINTS OF THE SALES GAIN THE COMPANY SAID MR. RAMQVIST BOASTED THAT ERICSSON ENTERED NINETEEN NINETY FOUR WITH THE BIGGEST ORDER BACKLOG IN ITS HISTORY ABOUT FORTY FIVE BILLION KRONOR WHO'S NEWS MERRILL BROWN FORTY ONE SENIOR VICE PRESIDENT CORPORATE AND PROGRAM DEVELOPMENT FOR COURTROOM TELEVISION NETWORK WAS NAMED PRESIDENT OF THE INFORMATION SERVICES DIVISION OF KAGAN WORLD MEDIA A UNIT OF PAUL KAGAN ASSOCIATES INCORPORATED WHICH GATHERS MEDIA INDUSTRY ECONOMIC AND FINANCIAL DATA CALVIN KLEIN INCORPORATED SIGNED A LETTER OF INTENT TO SELL ITS JEANS BUSINESS TO RIO SPORTSWEAR INCORPORATED IN A TRANSACTION VALUED AT MORE THAN THIRTY FIVE MILLION DOLLARS THE MOVE COMES JUST WEEKS AFTER CALVIN KLEIN STRUCK A SIMILAR AGREEMENT TO SELL ITS UNDERWEAR BUSINESS TO WARNACO GROUP INCORPORATED FOR SIXTY FOUR MILLION DOLLARS UNDER THE AGREEMENT RIO A NEW YORK MAKER OF JEANS AND OTHER APPAREL WILL PURCHASE CALVIN KLEIN'S MENS AND WOMENS JEANS DIVISIONS AND THE COMPANY'S DOMESTIC PLANTS RIO A UNIT OF OSHKOSH B'GOSH INCORPORATED IN OSHKOSH WISCONSIN WILL HAVE A LICENSE TO MAKE THE JEANS AND PAY ONGOING ROYALTIES TO CALVIN KLEIN WHICH WILL CONTINUE TO CONTROL ADVERTISING AND DESIGNS OF THE JEANS THE COMPANIES HAVE ALSO AGREED TO JOINTLY DEVELOP AND LAUNCH A CHILDREN'S JEANS BUSINESS CALVIN KLEIN PURCHASED ITS JEANS BUSINESS IN NINETEEN EIGHTY THREE FROM PURITAN FASHIONS INCORPORATED FOR SIXTY FIVE POINT EIGHT MILLION DOLLARS THE JEANS BECAME MR. KLEIN'S SIGNATURE CATAPULTING THE DESIGNER INTO THE FOREFRONT OF AMERICAN FASHION BUT THE PURITAN PURCHASE ALSO BURDENED THE COMPANY WITH JUNK BOND DEBT FOR SEVERAL YEARS WITH THE SALE OF ITS JEANS BUSINESS CALVIN KLEIN IS LEFT MANUFACTURING PRIMARILY A WOMEN'S COUTURE COLLECTION AND C. K. SECONDARY WOMEN'S AND MEN'S COLLECTIONS FRAGRANCE LEATHER GOODS AND OTHER PRODUCTS ARE ALREADY SOLD UNDER LICENSE CALVIN KLEIN OFFICIALS COULDN'T BE REACHED TO COMMENT ON THE ANNOUNCEMENT WHICH WAS MADE BY RIO MR. KLEIN QUOTE HAS BECOME A SIX PERCENTER QUOTE SAID ALAN MILLSTEIN A NEW YORK FASHION INDUSTRY CONSULTANT REFERRING TO THE TYPICAL PERCENTAGE OF SALES THAT COMPANIES RECEIVE WHEN THEY LICENSE PRODUCTS BY SELLING THE JEANS BUSINESS HE BUYS PEACE OF MIND AND HE CAN CONCENTRATE ON WHAT HE DOES BEST ADVERTISING AND SELF PROMOTION LAST YEAR NEW CARS WERE THE MOST AFFORDABLE THEY'VE BEEN IN SIX YEARS ACCORDING TO A COMERICA BANK STUDY THE AVERAGE AMERICAN FAMILY NEEDED THIRTY WEEKS OF WORK IN THE FOURTH QUARTER OF NINETEEN NINETY THREE EARNING TWENTY ONE THOUSAND FOUR HUNDRED SIXTY NINE DOLLARS TO AFFORD A NEW CAR ACCORDING TO THE BANK'S QUOTE AFFORDABILITY INDEX QUOTE WHICH INCLUDES THE AVERAGE PRICE OF CARS LENDING RATES AND MEDIAN FAMILY INCOME ESTIMATED AT THIRTY SEVEN THOUSAND TWO HUNDRED THIRTY TWO DOLLARS IN THE FOURTH QUARTER THAT FOURTH QUARTER RATE WAS A DROP FROM THIRTY POINT TWO WEEKS IN THE THIRD QUARTER AND BROUGHT THE AVERAGE FOR NINETEEN NINETY THREE TO THIRTY POINT ONE WEEKS THE LOWEST SINCE NINETEEN EIGHTY SEVEN WHEN IT TOOK ONLY TWENTY NINE WEEKS OF WORK TO AFFORD A CAR CARS BECAME MORE AFFORDABLE IN THE FOURTH QUARTER THAN IN THE THIRD BECAUSE OF A CONTINUING DROP IN INTEREST RATES AND A ONE HUNDRED SIXTY EIGHT DOLLAR DROP IN THE AVERAGE PURCHASE PRICE OF NEW VEHICLES SAID DAVID L. LITTMANN COMERICA'S SENIOR ECONOMIST THE INDEX DOESN'T INCLUDE THE RISING PRICE OF USED CARS WHICH HAS MADE NEW CARS EVEN MORE AFFORDABLE BECAUSE MOST CARS ARE BOUGHT IN A SWAP WITH THE PROSPECT OF HIGHER INTEREST RATES MR. LITTMANN DOESN'T EXPECT AFFORDABILITY TO IMPROVE IN NINETEEN NINETY FOUR PRESIDENT CLINTON IS EXPECTED TODAY TO ISSUE A LONG AWAITED EXECUTIVE ORDER REQUIRING FEDERAL AGENCIES AND POSSIBLY GOVERNMENT CONTRACTORS TO MONITOR THE EFFECTS OF THEIR ACTIONS ON ENVIRONMENTAL HEALTH IN MINORITY COMMUNITIES KATHLEEN MCGINTY DIRECTOR OF THE WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY DECLINED TO DESCRIBE THE EXECUTIVE ORDER FULLY AT A MEETING WITH REPORTERS SHE SAID THE ADMINISTRATION IS TARGETING ALL USES OF FEDERAL FUNDS NOT JUST DIRECT SPENDING BY THE FEDERAL GOVERNMENT ONE PERSON CLOSE TO THE ADMINISTRATION'S DELIBERATIONS SAID THE ORDER WILL BE PURPOSELY VAGUE ABOUT THE EXTENT TO WHICH PRIVATE COMPANIES WILL BE COVERED HE SAID THE ORDER IS MORE LIKELY TO COVER PRIVATE COMPANIES THAT PERFORM CERTAIN GOVERNMENT FUNCTIONS COMPANIES THAT ARE CONTRACTED TO CLEAN UP NUCLEAR WEAPONS PLANTS FOR INSTANCE RATHER THAN COMPANIES SUCH AS PAPER SUPPLIERS WHICH DO BUSINESS WITH THE GOVERNMENT COMPANIES THAT ARE COVERED WOULD BE REQUIRED TO DEMONSTRATE THAT THEIR ACTIVITIES AREN'T DOING DISPROPORTIONATE ENVIRONMENTAL HARM IN MINORITY COMMUNITIES THE ORDER IS THE CLINTON ADMINISTRATION'S MOST VISIBLE EFFORT SO FAR TO ADDRESS THE ISSUE OF QUOTE ENVIRONMENTAL JUSTICE QUOTE THAT IS THE CONCERN THAT POLLUTION IS A CIVIL RIGHTS PROBLEM AS WELL AS AN ENVIRONMENTAL ONE STUDIES HAVE FOUND THAT CERTAIN TYPES OF POLLUTION PARTICULARLY HAZARDOUS WASTE TEND TO BE CONCENTRATED IN MINORITY AND LOW INCOME NEIGHBORHOODS RAISING THE QUESTION OF WHETHER ENFORCEMENT OF ENVIRONMENTAL LAWS IN SUCH NEIGHBORHOODS IS MORE LAX THE IMMEDIATE EFFECT OF THE ORDER PROBABLY WILL BE TO IMPOSE NEW RECORDKEEPING REQUIREMENTS MS. MCGINTY SAID THERE IS A NEED TO MEASURE NOT JUST THE IMPACT OF INDIVIDUAL POLLUTANTS ON POPULATIONS EXPOSED TO ENVIRONMENTAL HAZARDS BUT ALSO TOTAL AND CUMULATIVE IMPACTS OF ALL POLLUTANTS THAT AFFECT INDIVIDUAL AREAS SEPARATELY MS. MCGINTY SAID THAT ENVIRONMENTAL PROTECTION AGENCY CHIEF CAROL BROWNER WAS SPEAKING FOR BILL CLINTON AND THE REST OF THIS ADMINISTRATION EARLIER THIS WEEK WHEN MS. BROWNER ENDORSED LEGISLATION THAT LARGELY WOULD BAN SMOKING IN MOST NONRESIDENTIAL BUILDINGS THE BILL INTRODUCED BY REPRESENTATIVE HENRY WAXMAN D. CALIFORNIA WOULD BAN SMOKING IN ANY NONRESIDENTIAL BUILDING REGULARLY ENTERED BY TEN OR MORE PERSONS AT LEAST ONE DAY A WEEK EXCEPT IN SPECIALLY DESIGNATED SMOKING AREAS THAT HAVE DIRECT EXHAUST OUTLETS TO THE OUTSIDE GENERAL MOTORS CORPORATION FORD MOTOR COMPANY CHRYSLER CORPORATION AND HONDA MOTOR CORPORATION ALL SCHEDULED OVERTIME THIS WEEK AT U. S. ASSEMBLY PLANTS ALTOGETHER THE TEN DOMESTIC AUTO MAKERS SAID THEY PLAN TO BUILD TWO HUNDRED FIFTY EIGHT THOUSAND SEVEN HUNDRED NINETEEN CARS AND TRUCKS THIS WEEK AN INCREASE OF TWENTY SIX POINT SEVEN PERCENT FROM THE TWO HUNDRED FOUR THOUSAND TWO HUNDRED SIX VEHICLES BUILT IN THE SAME WEEK LAST YEAR IN JANUARY THE AUTO MAKERS BUILT NINE HUNDRED THIRTY FOUR THOUSAND NINE HUNDRED FIFTY FIVE CARS AND TRUCKS UP SIXTEEN POINT SEVEN PERCENT FROM THE YEAR EARLIER TOTAL OF EIGHT HUNDRED ONE THOUSAND ONE HUNDRED NINETY TWO SOCIETE COMMERCIALE DE L'OUEST AFRICAIN AN INTERNATIONAL TRADING SUBSIDIARY OF COMPANY FINANCIERE DE PARIBAS SAID ITS CHAIRMAN HAS RESIGNED CITING THE COMPANY'S FINANCIAL DIFFICULTIES SCOA SHARES PLUNGED THREE POINT FOUR PERCENT ON THE PARIS BOURSE TO EIGHT POINT SIX FIVE FRANCS ONE DOLLAR AND FORTY FIVE CENTS FROM EIGHT POINT NINE FOUR FRANCS ON VOLUME OF TWO HUNDRED TWENTY ONE THOUSAND SHARES THURSDAY THE BOARD APPOINTED GUY DE NARBONNE SCOA'S MANAGING DIRECTOR TO BE INTERIM CHAIRMAN SCOA SAID ITS FINANCIAL DIFFICULTIES TOGETHER WITH LAST MONTH'S FIFTY PERCENT DEVALUATION OF THE C. F. A. AFRICAN FRANC QUOTE HAVE LED THE COMPANY TO ABANDON DEVELOPMENT PROJECTS THAT WERE PLANNED IN THE DISTRIBUTION SECTOR IN FRANCE QUOTE IT SAID SCOA IS RETRENCHING AND WILL DEVOTE EFFORTS TO REDUCING DEBT THE C. F. A. AFRICAN FRANC THE CURRENCY USED IN FOURTEEN FRENCH SPEAKING AFRICAN COUNTRIES WAS DEVALUED BY FIFTY PERCENT AGAINST THE FRENCH FRANC LAST MONTH THE FIRST TIME THE CURRENCY HAD BEEN ADJUSTED SINCE NINETEEN FORTY EIGHT AS A RESULT EARNINGS OF FRANC ZONE SUBSIDIARIES OF FOREIGN COMPANIES HAVE BEEN HALVED AS HAVE THE VALUES OF THEIR ASSETS A GROUP OF FRENCH CORPORATE INVESTORS ESTIMATES THAT THE CURRENCY ADJUSTMENT WILL COST FRENCH COMPANIES WITH FRANC ZONE OPERATIONS A TOTAL OF TEN BILLION FRANCS ONE POINT SIX SEVEN BILLION DOLLARS THERE ARE ABOUT ONE THOUSAND TWO HUNDRED SUBSIDIARIES OF EIGHTY FRENCH COMPANIES IN THE REGION PARIBAS OWNS A FIFTY THREE POINT SEVEN PERCENT MAJORITY INTEREST IN SCOA WHICH HAS EXTENSIVE TRADING INTERESTS IN FRENCH WEST AFRICA PARIBAS INDICATED RECENTLY THAT ITS NINETEEN NINETY THREE EARNINGS HAD BEEN ERODED BY LOSSES INCURRED BY SCOA BUT IT DIDN'T PROVIDE ANY FIGURES SCOA HAS BEEN A FINANCIAL DRAIN ON PARIBAS FOR MANY YEARS IN THE FIRST SIX MONTHS OF NINETEEN NINETY THREE ALONE SCOA INCURRED AN ATTRIBUTABLE CONSOLIDATED LOSS OF ALMOST SIX HUNDRED MILLION FRANCS ONE HUNDRED POINT FIVE MILLION DOLLARS COMPARED WITH ONE HUNDRED THIRTY SIX POINT TWO MILLION FRANCS IN THE SAME PERIOD OF NINETEEN NINETY TWO THE COMPANY POSTED A LOSS OF TWO HUNDRED SEVENTY SEVEN MILLION FRANCS IN NINETEEN NINETY TWO UP FROM ONE HUNDRED NINETY NINE POINT SEVEN MILLION FRANCS A YEAR EARLIER THE COMPANY HAS MADE A NUMBER OF STRATEGIC ERRORS IN RECENT YEARS ONE BEING A DIVERSIFICATION INTO COMPUTER DISTRIBUTION IN EUROPE THROUGH A SUBSIDIARY CALLED OMNILOGIC INTERNATIONAL THE UNIT CONTRIBUTED FOUR HUNDRED EIGHTY TWO MILLION FRANCS OF SCOA'S NINETEEN NINETY THREE FIRST HALF LOSS BEFORE IT WAS SOLD OFF IN SEPTEMBER FOR A SYMBOLIC FRANC THE FIRST HALF LOSS MEANT THAT SCOA'S DEBTS EXCEEDED ITS ASSETS AND PARIBAS WAS FORCED TO COME TO ITS RESCUE WITH A TRANSFUSION OF TWO HUNDRED MILLION FRANCS OF FRESH CAPITAL THE COMPANY THEN CUT THE NOMINAL VALUE OF ITS SHARES TO ONE FRANC FROM TWENTY FRANCS AND SLASHED ITS CAPITAL TO NINETY MILLION FRANCS FROM ONE POINT EIGHT TWO BILLION WIPING OUT MORE THAN A BILLION FRANCS OF ACCUMULATED LOSSES IN THE PROCESS A REMAINING SIX HUNDRED EIGHTY ONE MILLION FRANCS WERE TRANSFERRED TO A RESERVE ACCOUNT TO BE USED TO OFFSET NEW LOSSES IN NINETEEN NINETY THREE ONE OF SCOA'S MAIN ACTIVITIES IS DISTRIBUTING AUTOMOBILES IN FRANCE AND IN EIGHT AFRICAN COUNTRIES AND THE COMPANY BORE THE FULL BRUNT OF THE FIFTEEN PERCENT DROP IN FRENCH CAR SALES LAST YEAR SCOA HAS BEEN TRYING TO REDUCE ITS INDEBTEDNESS WITH ASSET SALES IN RECENT YEARS ITS CONSOLIDATED REVENUE FELL BY MORE THAN FORTY PERCENT BETWEEN NINETEEN NINETY AND NINETEEN NINETY TWO TO SEVEN POINT THREE NINE BILLION FRANCS THE SENATE BANKING COMMITTEE VOTED TO CONFIRM RICKI TIGERT AS CHAIRWOMAN OF THE FEDERAL DEPOSIT INSURANCE CORPORATION DESPITE REPUBLICAN EFFORTS TO USE HER NOMINATION TO RAISE QUESTIONS ABOUT PRESIDENT CLINTON'S AND HILLARY RODHAM CLINTON'S CONNECTION WITH A FAILED THRIFT MS. TIGERT A LAWYER IN THE WASHINGTON OFFICE OF GIBSON DUNN AND CRUTCHER THIS WEEK REMOVED HERSELF FROM CONSIDERATION OF MATTERS CONCERNING THE CLINTONS' BUSINESS AND POLITICAL ACTIVITIES MS. TIGERT DESCRIBES HERSELF AS A QUOTE CASUAL QUOTE ACQUAINTANCE OF THE CLINTONS THE F. D. I. C. IS TANGENTIALLY INVOLVED IN LOOKING AT THE CIRCUMSTANCES SURROUNDING THE FAILURE OF MADISON GUARANTY SAVINGS AND LOAN WHICH HAS BEEN LINKED TO THE CLINTONS' PERSONAL AND POLITICAL FINANCES THE NOMINATION CLEARED THE PANEL ON A SIXTEEN TO ONE VOTE DESPITE A STATEMENT BY SENATOR LAUCH FAIRCLOTH R. N. C. THAT THE CHAIRMANSHIP OF THE F. D. I. C. IS NOT A PLACE TO PUT ANOTHER CLINTON PERSONAL FRIEND HE WAS THE SOLE DISSENTING VOTE THE SIZE OF THE MARGIN INDICATES THAT MS. TIGERT WILL WIN CONFIRMATION FROM THE FULL SENATE ALTHOUGH CONSIDERATION OF HER NOMINATION WILL GIVE THE G. O. P. ANOTHER OPPORTUNITY TO RAISE MADISON GUARANTY A SPECIAL COUNSEL IS INVESTIGATING THE MATTER THE PANEL ALSO CLEARED THE NOMINATION OF ANDREW HOVE NOW ACTING CHAIRMAN OF THE F. D. I. C. TO A SECOND FIVE YEAR TERM AS THE AGENCY'S VICE CHAIRMAN AND THE NOMINATION OF ANNE HALL A VICE PRESIDENT OF BANC ONE CORPORATION IN COLUMBUS OHIO TO THE FIVE MEMBER F. D. I. C. BOARD A FEW YEARS AGO SOME CLEVER BRITISH CRYPTOGRAPHERS DEVISED A PLAN TO PROTECT MOBILE PHONE USERS FROM EAVESDROPPERS THEY INVENTED A SECRET CODE TO SCRAMBLE THE VOICES A CODE SO GOOD THAT WITHOUT THE KEY IT WOULD TAKE THE WORLD'S FASTEST SUPERCOMPUTERS SEVERAL HOURS TO DECIPHER EVEN ONE CONVERSATION ALAS IT WAS JUST A BIT TOO GOOD THERE HANGS A SPY STORY OF THE WIRELESS AGE EMBROILING THE NATIONAL INTELLIGENCE AGENCIES OF THE U. S. BRITAIN FRANCE THE NETHERLANDS AND AUSTRALIA IN A SECRETIVE FOUR YEAR TUSSLE WITH SOME OF THE WORLD'S BIGGEST TELEPHONE COMPANIES THE END CAME ONLY A FEW MONTHS AGO WITH THE SPOOKS WINNING AND THE PHONE ENGINEERS LOSING BUT HARD FEELINGS LINGER QUOTE POSSIBLY THEY WATCH TOO MANY JAMES BOND MOVIES QUOTE GRUMBLES KARI MARTTINEN A TELECOM FINLAND EXECUTIVE WHO TANGLED WITH THE INTELLIGENCE AGENCIES BUT THERE'S MORE TO THIS STORY THE STRANGE CASE OF A FIVE SLASH ONE AS THE CODE IS CALLED WAS THE FIRST PRECEDENT SETTING INSTANCE OF AN INCREASINGLY COMMON CONFLICT IN WIRELESS COMMUNICATIONS CAR PHONE USERS WANT PRIVACY BUT GOVERNMENTS WANT TO LISTEN IN ON CRIMINALS TERRORISTS OR FOREIGN AGENTS WITH MOST MOBILE PHONES TODAY IT'S A SNAP FOR ANYONE WHETHER POLICEMAN OR VOYEUR TO EAVESDROP OVER THE AIRWAVES BUT AS THE TECHNOLOGY ADVANCES IT BECOMES HARDER THUS WESTERN INTELLIGENCE AGENCIES ARE BATTLING TO DRAW THE LINE RIGHT NOW TO KEEP FUTURE GENERATIONS OF MOBILE PHONES SAFE FOR OFFICIAL TAPPING THEY'RE LOOKING AHEAD SAYS JAMES BIDZOS PRESIDENT OF RSA DATA SECURITY INCORPORATED A REDWOOD CITY CALIFORNIA CRYPTOGRAPHY CONCERN THAT HAS CLASHED OFTEN WITH THE INTELLIGENCE AGENCIES THEY'RE SEEING THAT EVENTUALLY EVERYONE WILL BE CARRYING PORTABLE PERSONAL COMMUNICATIONS DEVICES THAT IF TOO SECURE COULD MAKE INTELLIGENCE WORK EVEN HARDER THEY DON'T WANT THIS SECURITY TECHNOLOGY TO GET OUT IT'S A THREAT IN ANY FORM THE STORY BEGINS IN THE LATE NINETEEN EIGHTIES WHEN A COMMITTEE OF TELEPHONE ENGINEERS FROM AROUND WESTERN EUROPE WAS DESIGNING WHAT WOULD SOON BECOME ONE OF THE WORLD'S MOST ADVANCED MOBILE TELEPHONE SYSTEMS THE FIRST ALL DIGITAL CAR PHONE NETWORK GSM OR GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS BY NOW HAS A MILLION USERS IN EUROPE AND FIFTY MILLION FORECAST WORLD WIDE BY TWO THOUSAND IT AND SOME RIVAL SYSTEMS BEING TESTED IN THE U. S. AND JAPAN ARE TO SUCCEED THE CURRENT GENERATION OF ANALOG CELLULAR TELEPHONES IN CONTRAST TO STATIC PRONE ANALOG SYSTEMS A DIGITAL CAR PHONE ELECTRONICALLY CONVERTS CONVERSATIONS INTO THE BITS AND BYTES OF A COMPUTER TO OFFER A CLEARER CONNECTION AND EXTRA FEATURES A BIG PROBLEM WITH ANALOG SYSTEMS IS THAT THEY LEAK SECRETS LIKE A U. S. CONGRESSIONAL COMMITTEE TO EAVESDROP ALL IT TAKES IS AN OFF THE SHELF RADIO SCANNER THE WORLD'S MOST CELEBRATED CASE OCCURRED IN BRITAIN WHEN SOMEONE TAPED A COMPROMISING CELLULAR CALL BETWEEN PRINCESS DIANA AND A MALE FRIEND THE TAPE WAS LEAKED TO NEWSPAPERS IN NINETEEN NINETY TWO AND SOON ALL BRITAIN WAS READING ABOUT THE PRINCESS'S CHAT WITH QUOTE SQUIDGY QUOTE AS SHE CALLED HIM THE MYSTERY OF WHO DARED EAVESDROP ON A ROYAL CALL HAS NEVER BEEN RESOLVED THOUGH MOST SIGNS POINTED TOWARD BRITAIN'S AGGRESSIVE INTELLIGENCE AGENCIES GSM MIGHT HAVE PRESERVED THE PALACE DECORUM BECAUSE A GSM PHONE WORKS LIKE A COMPUTER IT CAN SCRAMBLE A CALLER'S WORDS BY CRANKING THE ELECTRONIC SIGNALS THAT REPRESENT THEM THROUGH A PREARRANGED SECRET CODE IT ALL HAPPENS ELECTRONICALLY SO THE CALLER DOESN'T NOTICE AND THE TELEPHONE COMPANY COMPUTER USES THE SAME CODE TO UNSCRAMBLE THE WORDS YET TO ANYONE LISTENING IN OVER THE AIR THE CONVERSATION SOUNDS LIKE THE SQUEALS OF A COMPUTER MODEM BUT ONE THAT'S SPEAKING A NONSENSE LANGUAGE NO NORMAL COMPUTER CAN FATHOM THE HEART OF THIS SYSTEM IS THE CIPHER ITSELF AND THAT'S WHERE THE CRYPTOGRAPHERS CAME IN THE EUROPEAN GSM PLANNERS TURNED TO BRITAIN A WORLD CENTER FOR CIPHERS EVER SINCE THE BRITISH CRACKED NAZI GERMANY'S FAMOUS ENIGMA CODE IN WORLD WAR TWO THEIR GOAL WAS TO MAKE THE CODE TOUGH BUT NOT IMPOSSIBLY SO THE CRYPTOGRAPHERS WEREN'T BUILDING A MILITARY GRADE CIPHER ALGORITHM OR MATHEMATICAL FORMULA SAYS ONE INDUSTRY OFFICIAL WHO DECLINES TO BE NAMED INSTEAD THE AIM WAS TO PROVIDE A REASONABLE COMMERCIAL LEVEL OF SECURITY TO PREVENT PEOPLE FROM BUILDING SCANNERS TO EAVESDROP AS EASILY AS WITH THE OLD ANALOG SYSTEMS IN HINDSIGHT IT APPEARS THEY OVERDID IT THEY CALLED THEIR BRAINCHILD A FIVE SLASH ONE A FOR ALGORITHM FIVE FOR THE FIFTH OF NINE FORMULAS INVOLVED IN GSM SECURITY AND ONE FOR THE FIRST VERSION HOW IT WORKS IS SECRET EVEN TODAY CELLULAR TELEPHONE MANUFACTURERS USING IT MUST SIGN CONFIDENTIALITY PLEDGES AND GET A SPECIAL LICENSE FROM THE BRITISH GOVERNMENT BUT IN GENERAL PART OF THE CODE IS HELD BY THE PHONE COMPANY COMPUTER PART ON A COMPUTER CHIP INSIDE THE GSM PHONE AND PART ON A SPECIAL CREDIT CARD LIKE DEVICE THAT THE USER SLIPS INTO THE PHONE TO TURN IT ON WITHOUT ALL THREE THE ALGORITHM CAN'T FUNCTION A FEATURE TO DISCOURAGE SOMEONE FROM CRACKING THE CODE JUST BY STEALING AND ANALYZING A GSM TELEPHONE EVEN TOUGHER FOR EVERY CALL A NEW CODE IS CREATED THE GSM PLANNERS AT EUROPE'S MAJOR TELEPHONE COMPANIES WERE DELIGHTED WITH A FIVE SLASH ONE THEY FIGURED SUCH TIGHT SECURITY WOULD BE A BIG SELLING POINT AND THE MAIN CAR PHONE MAKERS IN EUROPE MOTOROLA INCORPORATED SWEDEN'S TELEFON A. B. LM ERICSSON FINLAND'S OY NOKIA AND THE PANASONIC DIVISION OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL COMPANY BEGAN INSCRIBING THE CODE ON SILICON CHIPS THEY AND GSM'S BIGGEST PHONE COMPANY BACKERS INCLUDING DEUTSCHE BUNDESPOST TELEKOM FRANCE TELECOM AND BRITISH TELECOMMUNICATIONS P. L. C. BEGAN PLANNING GSM SYSTEMS AT HOME AND TRYING TO SELL THEM ABROAD INTEREST HAS BEEN HIGH FORTY FIVE NATIONS HAVE AGREED TO OPEN GSM SYSTEMS AND THIRTY THREE MORE SAY THEY PLAN TO BUT IN NINETEEN EIGHTY NINE A SNAG AROSE BRITAIN BEGAN REFUSING EXPORT LICENSES THE SECURITY AGENCIES THERE AND IN WASHINGTON PARIS AND THE HAGUE HAD STARTED COMPARING NOTES AND GETTING ALARMED AT THE THOUGHT OF JUST ANYBODY GETTING HOLD OF THE CODES IN PART SAYS ONE AMERICAN TELEPHONE EXECUTIVE THE SPY AGENCIES DIDN'T WANT A PROMISING NEW OPPORTUNITY FOR ELECTRONIC EAVESDROPPING NEW MOBILE TELEPHONES IN SAY RUSSIA RENDERED UNTAPPABLE THEY ALSO WORRIED THAT THE CODE TECHNOLOGY ITSELF COULD BE TAKEN FROM GSM PHONES AND APPLIED TO MILITARY PROJECTS SAY MISSILE GUIDANCE SYSTEMS IN IRAQ THEIR OBJECTIONS TOOK THE GSM PLANNERS BY SURPRISE THEY HADN'T THOUGHT TO CHECK WITH THE SECURITY AGENCIES IN ADVANCE AND BY NOW THE INDUSTRY HAD ALREADY SPENT TOO MUCH MONEY ON A FIVE SLASH ONE TO WALK AWAY FROM IT BESIDES MANY INDUSTRY ENGINEERS THOUGHT THE WORRIES OVERBLOWN EVEN WITH THE CODE WORKING SAYS TELECOM FINLAND'S MR. MARTTINEN FOR A TIME CHAIRMAN OF THE GSM PLANNING COMMITTEE A SECURITY AGENCY COULD STILL EAVESDROP BY TAPPING INTO THE PHONE LINES OR SWITCHES ONLY THE RADIO WAVE PORTION OF THE CALL IS ENCRYPTED THERE ARE SO MANY DIFFERENT WAYS TO EAVESDROP THE RADIO PART IS THE MOST STUPID AND DIFFICULT TO TACKLE HE SAYS BUT THE AGENCIES HELD THE TRUMP CARDS VETO POWER OVER THE EXPORT LICENSES A COMPROMISE EMERGED LAST YEAR WESTERN EUROPEAN NATIONS AND A FEW OTHER PRIVILEGED MARKETS INCLUDING HONG KONG AUSTRALIA AND HUNGARY GET THE ORIGINAL A FIVE SLASH ONE CODE U. S. MOBILE PHONE COMPANIES HAVEN'T DECIDED YET WHETHER THEY WILL USE GSM AT ALL THEY HAVE SOME COMPETING DIGITAL TECHNOLOGIES WITH AS YET UNRESOLVED ENCRYPTION DISPUTES MOST OTHER NATIONS THAT TAKE GSM GET A NEW EASIER TO CRACK CIPHER CALLED A FIVE SLASH TWO AND THE MOST SENSITIVE COUNTRIES SUCH AS RUSSIA AND IRAQ DON'T GET ANY CRYPTOGRAPHY AT ALL IN THEIR GSM SYSTEMS UNFORTUNATELY THIS RUFFLES DIPLOMATIC FEATHERS MALAYSIA IS MIFFED THAT IT GETS THE WEAK CODE WHILE NEIGHBORING SINGAPORE GETS THE STRONG ONE SAUDI ARABIA AND KUWAIT COMPLAIN THAT THE UNITED ARAB EMIRATES AND QATAR GOT SPECIAL DISPENSATIONS TO USE THE HIGH GRADE CODE QUOTE HOW DO YOU EXPLAIN TO THE SAUDIS THAT WE'LL GIVE IT A FIVE SLASH ONE TO THE U. A. E. BUT NOT TO YOU QUOTE ASKS GEORGE SCHMITT AN EXECUTIVE OF GERMAN MOBILE PHONE OPERATOR MANNESMANN A. G. AND CURRENT CHAIRMAN OF THE GSM PLANNING COMMITTEE THOSE ARE THE TOUGH THINGS FOR ME AS CHAIRMAN AND THEY DON'T MAKE A LOT OF SENSE THE CASE OF RUSSIA IS MORE COMPLEX THOUGH LOCAL POLITICIANS THERE GROUSE ABOUT THE PERCEIVED INDIGNITY OF GETTING CIPHERLESS GSM RUSSIAN SECURITY AGENCIES MAY BE PLEASED EARLIER THIS YEAR MOSCOW ISSUED LICENSES TO WESTERN TELEPHONE COMPANIES TO OPEN GSM SYSTEMS IN TWELVE CITIES AND THE LICENSE INCLUDES PECULIAR LANGUAGE ENSURING THE ABILITY OF THE STATE SECURITY ORGANS TO WORK WITH THE GSM OPERATOR TO DETERMINE INFORMATION SAYS ONE WESTERN TELEPHONE EXECUTIVE NOBODY KNOWS EXACTLY WHAT THAT MEANS BUT THE WESTERNERS ASSUME THEY MAY HAVE TO HELP THE LOCAL SECURITY FORCES EAVESDROP ON THE CIPHERLESS GSM CALLS IN RUSSIA INDUSTRY EXECUTIVES EXPECT A FURTHER EASING OF THE RULES THIS YEAR PERHAPS UPGRADING THE NO CODE COUNTRIES TO GET A FIVE SLASH TWO BUT SIMILAR QUARRELS ARE GOING ON RIGHT NOW OVER THE MANY OTHER FLAVORS OF DIGITAL MOBILE TECHNOLOGY THAT HAVE EMERGED SINCE GSM U. S. MANUFACTURERS RECENTLY AGREED TO WEAKEN THE ENCRYPTION FOR CELLULAR DIGITAL PACKET DATA OR CDPD A NEW STANDARD TO SEND DATA OVER CELLULAR PHONE NETWORKS SAYS RSA DATA'S MR. BIDZOS AND OTHER CONTROVERSIES ARE STILL UNRESOLVED SUCH AS OVER HOW TO ENCRYPT DATA OVER NETWORKS OF PORTABLE COMPUTERS FOR THESE QUARRELS SAYS MANNESMANN'S MR. SCHMITT THE GSM CASE PROVIDES A CLEAR LESSON ENCRYPT IT GOOD BUT DON'T ENCRYPT IT TOO GOOD MR. HUDSON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LONDON BUREAU MONEY MANAGER MARIO GABELLI IS LOSING ELIZABETH BRAMWELL A WELL KNOWN MANAGER OF ONE OF HIS STOCK FUNDS BECAUSE HE ASKED HER TO MOVE HER OFFICE OUT OF NEW YORK CITY ELIZABETH BRAMWELL IS LEAVING HER JOB AS PORTFOLIO MANAGER OF GABELLI GROWTH FUND TO FORM BRAMWELL CAPITAL MANAGEMENT HER OWN MONEY MANAGEMENT FIRM MS. BRAMWELL TOLD MR. GABELLI YESTERDAY THAT SHE WAS LEAVING THE FUND WHICH SHE HAS MANAGED SINCE IT BEGAN IN NINETEEN EIGHTY SEVEN SHE HAS BEEN WITH GABELLI AND COMPANY SINCE NINETEEN EIGHTY FIVE AND HAD MET MR. GABELLI YEARS BEFORE AT COLUMBIA BUSINESS SCHOOL MS. BRAMWELL SAID IN AN INTERVIEW THAT SHE HAD WANTED TO RUN HER OWN INVESTMENT FIRM FOR A LONG TIME BUT THE QUOTE CATALYST QUOTE FOR HER DEPARTURE FROM GABELLI FUNDS INCORPORATED SHE SAID WAS WHEN MR. GABELLI QUOTE DECIDED RATHER ABRUPTLY THAT HE WANTED TO MOVE EVERYTHING UP TO RYE N. Y. QUOTE INCLUDING HER OFFICE IN RECENT WEEKS MS. BRAMWELL STAYED IN NEW YORK CITY WHEN MOST OF MR. GABELLI'S INVESTMENT ORGANIZATION MOVED TO SUBURBAN RYE TWO YEARS AGO MS. BRAMWELL SAID SHE NEEDED TO BE IN NEW YORK CITY TO MEET WITH MANAGEMENTS OF COMPANIES IN WHICH SHE INVESTS GOING BACK AND FORTH DURING TRADING HOURS TO RYE DIDN'T WORK FOR ME SHE SAID MS. BRAMWELL ALSO SAID SHE WANTED MORE RESOURCES TO RUN THE FUND THAN MR. GABELLI WAS GIVING HER AS HER FUND GREW IT CURRENTLY HAS SIX HUNDRED SEVENTY FIVE MILLION DOLLARS IN ASSETS SHE FELT IT NEEDED MORE STAFF I COULDN'T HIRE THE PEOPLE I NEEDED TO RUN THIS FUND SHE SAID I REALLY THOUGHT THAT THE PERFORMANCE THAT MY SHAREHOLDERS EXPECT OF ME I COULDN'T DELIVER UNLESS I CONTROLLED THE BUDGET GABELLI FUNDS SAID IT IS SEARCHING FOR A NEW MANAGER FOR GABELLI GROWTH IN THE MEANTIME MR. GABELLI AND A GROUP OF ANALYSTS WILL RUN THE FUND MR. GABELLI ALREADY MANAGES SEVEN OF THE ELEVEN GABELLI FUNDS WHICH HAVE TWO POINT SIX FIVE BILLION DOLLARS IN ASSETS MS. BRAMWELL GAINED SOME RENOWN DURING THE LATE NINETEEN EIGHTIES WHEN HER FUND OUTPERFORMED THOSE RUN BY HER BOSS MR. GABELLI WHILE MR. GABELLI IS A VALUE INVESTOR LOOKING FOR CHEAP STOCKS AND TAKEOVER PLAYS MS. BRAMWELL TENDS TO INVEST IN STOCKS OF FAST GROWING COMPANIES IN THE PAST COUPLE OF YEARS THE PERFORMANCE OF MR. GABELLI'S FUNDS HAS OVERTAKEN MS. BRAMWELL'S FUND SHE SAYS SOME OF HER FUND'S LOWER PERFORMANCE CAME FROM HER INABILITY TO HIRE MORE STAFF AS THE FUND GREW IN SIZE MS. BRAMWELL WOULDN'T SAY OUTRIGHT WHETHER HER NEW FIRM WOULD MANAGE MUTUAL FUNDS PRIVATE ACCOUNTS FOR INSTITUTIONS OR WEALTHY INDIVIDUALS OR SOME COMBINATION MR. GABELLI IN A STATEMENT SAID HE REGRETTED MS. BRAMWELL'S DEPARTURE HIS FIRM WOULDN'T COMMENT ON MS. BRAMWELL'S REMARKS ABOUT THE CONDITIONS THAT LED TO HER DEPARTURE APPLE COMPUTER INCORPORATED IS ENTERING THE HOTLY CONTESTED MARKET FOR COMPUTERIZED T. V. SET TOP DECODER BOXES IN A PARTNERSHIP WITH SOFTWARE SUPPLIER ORACLE CORPORATION NEW SET TOP DECODERS ARE NEEDED TO DELIVER NEW ENTERTAINMENT AND EDUCATION SERVICES SUCH AS VIDEO ON DEMAND AND INTERACTIVE SHOPPING OVER CABLE AND TELEPHONE LINES THE TWO COMPANIES SAID THE NEW SET TOP BOX WILL BE BASED ON APPLE'S MACINTOSH COMPUTER WHICH USES APPLE'S PROPRIETARY OPERATING SYSTEM AND A MICROPROCESSOR CHIP FROM MOTOROLA INCORPORATED THE NEW BOX WILL WORK WITH ORACLE MEDIA SERVER SOFTWARE WHICH WOULD BE USED TO STORE AND RETRIEVE MOVIES AND OTHER MULTIMEDIA INFORMATION THE COMPANIES SAID THEY SAID THEY PLAN TO DELIVER THE TECHNOLOGY ON A TRIAL BASIS IN THE FIRST HALF OF THIS YEAR THOUGH THEY PROVIDED NO MORE DETAILS SOURCES CLOSE TO ORACLE REDWOOD CITY CALIFORNIA HAVE PREVIOUSLY DISCLOSED THAT THE MACINTOSH TECHNOLOGY WOULD BE USED BY BRITISH TELECOMMUNICATIONS P. L. C. FOR A TRIAL IN THE LONDON AREA AMERICAN EXPRESS COMPANY IS TAKING A CLOSE LOOK AT OFFERING CHARGE CARDS TIED TO MAJOR MANUFACTURERS AND RETAILERS AND THAT OFFER DISCOUNTS TO USERS KENNETH I. CHENAULT HEAD OF THE COMPANY'S DOMESTIC CREDIT AND CHARGE CARD DIVISION TOLD SECURITIES ANALYSTS YESTERDAY THAT THE TOPIC OF SO CALLED CO BRANDED CARDS AS WELL AS OTHER STRATEGIC ALLIANCES IS A SERIOUS ONE AT THE BIG CHARGE CARD AND TRAVEL COMPANY QUOTE WE'RE NOT JUST PLANNING WE'RE WORKING ON THEM NOW QUOTE HE SAID ALTHOUGH AMERICAN EXPRESS OFFERS AN AFFINITY CARD THAT AWARDS FREQUENT FLIER MILES AND HAS A SMALL CO BRANDED CARD WITH AMERICAN TELEPHONE AND TELEGRAPH COMPANY IT HAS SO FAR AVOIDED THE RUSH TO LAUNCH MAJOR CO BRANDED PRODUCTS WITH SUCH CARDS ISSUERS JOIN UP WITH MAJOR PRODUCT MANUFACTURERS TO JOINTLY SPONSOR CARDS THAT PROVIDE CARD HOLDERS WITH DISCOUNTS BASED ON THEIR CARD USAGE THREE WEEKS AFTER THE NORTHRIDGE EARTHQUAKE ASSAULTED SOUTHERN CALIFORNIA ANOTHER DISTURBING JOLT HAS HIT ROSS AND JANEEN SWING AND THEIR STUDIO CITY HOME THE COUPLE SUSTAINED AN ESTIMATED LOSS OF TWENTY THOUSAND DOLLARS WHEN THEIR CHIMNEY CRASHED THROUGH THE ROOF OF THEIR THREE STORY HOUSE NOW AFTER NEARLY FOUR THOUSAND AFTERSHOCKS AND BOUTS OF HEAVY RAIN THEIR FOUNDATION APPEARS TO BE SETTLING INTO THE HILLSIDE QUOTE IT'S TOO EARLY TO TELL BUT THAT COULD COST ANOTHER TWENTY THOUSAND DOLLARS QUOTE SAYS MR. SWING A VICE PRESIDENT FOR CAESARS WORLD INCORPORATED ALL AROUND THE LOS ANGELES AREA THOUSANDS OF HOMEOWNERS ARE STILL DISCOVERING HIDDEN DAMAGE RANGING FROM CRACKED STUCCO TO RUPTURED FOUNDATIONS MUCH OF WHICH ISN'T COVERED BY INSURANCE ONLY A QUARTER TO A THIRD OF THE REGION'S HOMEOWNERS CARRY EARTHQUAKE INSURANCE AND THOSE THAT DO FACE VERY HIGH DEDUCTIBLES THEY ARE ALSO FINDING THAT WHAT APPEARED TO BE RELATIVELY MINOR PROBLEMS WILL BE VERY EXPENSIVE TO REPAIR THE MASSIVE AND WIDESPREAD DESTRUCTION OF THE JANUARY SEVENTEENTH TEMBLOR NOW ESTIMATED AT EITHER SIX POINT SEVEN OR SIX POINT EIGHT ON THE RICHTER SCALE CONTINUES TO RIPPLE THROUGH THE REAL ESTATE MARKET RATTLING INSURERS LENDERS REALTORS AND TENS OF THOUSANDS OF RESIDENTS WHILE OFFICIAL COST ESTIMATES ARE REVISED UPWARD OR DOWNWARD ALMOST DAILY BANK OF AMERICA WHICH HOLDS ABOUT FIVE POINT FIVE EIGHT BILLION DOLLARS IN FIRST AND SECOND MORTGAGES AND MANUFACTURED HOUSING LOANS IN THE AFFECTED AREA SAYS SOME PROBLEMS DON'T SURFACE FOR WEEKS OR EVEN MONTHS CAROLYN SHERWOOD CALL AN ECONOMIST WITH THE FEDERAL RESERVE BANK OF SAN FRANCISCO NOTES THAT THE QUAKE'S DISRUPTIONS INCLUDE SOME LOSS OF WORKER PRODUCTIVITY AND INDIVIDUAL NET WEALTH THE ECONOMIC STIMULUS FROM BILLIONS IN FEDERAL AID AND INSURANCE MONEY DOESN'T DIRECTLY OFFSET THOSE FACTORS SHE ADDS DENNIS FORST A SECURITIES ANALYST WHOSE ENCINO HOME SUSTAINED AN ESTIMATED FIFTEEN THOUSAND DOLLARS IN UNINSURED DAMAGE AGREES IT'S NOT JUST THE MONEY HE SAYS THE BIGGEST ISSUE FOR ME IS THE TIME AWAY FROM WORK OR THE TIME AT WORK YOU SPEND WORRYING ABOUT IT CHARLES RINEHART CHIEF EXECUTIVE OF H. F. AHMANSON COMPANY'S HOME SAVINGS OF AMERICA UNIT SAYS THE COMPANY IS SIFTING THROUGH ITS THIRTY TWO THOUSAND RESIDENTIAL LOANS IN THE AFFECTED AREA HOME SAVINGS IS OFFERING CUSTOMERS EVERYTHING FROM ADVICE ON DEALING WITH INSURERS TO BELOW MARKET LOANS FOR THOSE WHO MIGHT OTHERWISE RISK DEFAULT OR SIMPLY WALK AWAY FROM THEIR HOMES SOME EMPLOYERS SUCH AS WALT DISNEY COMPANY HUGHES AIRCRAFT COMPANY AND TIMES MIRROR COMPANY HAVE TRIED TO BRIDGE THE GAP FOR QUAKE SHOCKED EMPLOYEES BY OFFERING LOW OR NO INTEREST LOANS VIA CREDIT UNIONS BUT EVEN FOR THOSE WHO ARE INSURED OR LOOK FINANCIALLY PROSPEROUS ON PAPER THE RECOVERY MAY BE AN UPHILL CLIMB HOME BUYERS AND SELLERS HAVE BEEN THROWN IN LIMBO AS WELL A SURVEY BY THE MORTGAGE BANKERS ASSOCIATION OF AMERICA SAID ABOUT TWENTY ONE PERCENT OF PENDING HOME ESCROWS AND REFINANCINGS IN SOUTHERN CALIFORNIA WERE DISRUPTED BY THE EARTHQUAKE DELINQUENCY AND DEFAULT RATES ARE ALSO EXPECTED TO BE MODERATELY HIGHER IN THE AREA AND SOME ECONOMISTS LIKE FIRST INTERSTATE BANCORP'S JAMES PADINHA SAY SAN FERNANDO VALLEY REAL ESTATE PRICES MAY DROP AN ESTIMATED TEN PERCENT IN THE NEAR TERM RON KELLY A NORTHRIDGE REALTOR WHO OWNS FIVE HOUSES IN THE AREA CAN REEL OFF AN EYE POPPING LIST OF DAMAGES FOUR CHIMNEYS FIVE CINDERBLOCK WALLS TWO DAMAGED HEATING SYSTEMS TWO CRACKED POOLS OR ABOUT SEVENTY FIVE THOUSAND DOLLARS WORTH OF DESTRUCTION MOREOVER THE DELAY OF SEVERAL CLIENTS' PENDING TRANSACTIONS HAS PUT HIM IN A TEMPORARY LIQUIDITY CRUNCH ESPECIALLY IN LIGHT OF HIGH DEDUCTIBLE LIMITS ON HIS EARTHQUAKE INSURANCE STILL MR. KELLY REMAINS OPTIMISTIC RELATIVELY FEW CLIENTS HAVE PULLED OUT OF ESCROW HE SAYS AND THINGS ARE BOUND TO RECOVER WITHIN A FEW YEARS I HAVE THE OPTION OF STAYING HERE OR MOVING TO KANSAS WHERE I COULD FREEZE TO DEATH OR GET HIT BY A TORNADO HE ADDS I'VE LOOKED AROUND AND I THINK I'LL STAY HERE ECONOMISTS SAY FACTORS TIED TO RESIDENTIAL DAMAGE LAGGING HOME PRICES LESS CONSUMER CONFIDENCE CHANGES IN RETAIL SPENDING PATTERNS NET LOSS OF PERSONAL WEALTH ARE AMONG THE FIRST TO BE REFLECTED IN REGIONAL ECONOMIC DATA LOCAL OFFICIALS ESTIMATE THAT FIFTEEN THOUSAND HOUSES AND APARTMENTS WERE MADE UNINHABITABLE BY THE QUAKE WHILE TENS OF THOUSANDS OF OTHERS SUSTAINED ENOUGH DAMAGE TO FORCE HOMEOWNERS TO REACH INTO THEIR POCKETS FOR REPAIRS FROM A DAMAGE STANDPOINT THE QUAKE ALREADY QUALIFIES AS THE NATION'S THIRD COSTLIEST NATURAL DISASTER IN RECENT YEARS WITH AN ESTIMATED TWO POINT FIVE BILLION DOLLARS IN INSURED LOSSES ACCORDING TO PROPERTY CLAIM SERVICES OF RAHWAY N. J. A DIVISION OF THE AMERICAN INSURANCE SERVICES GROUP THAT AMOUNT WAS SURPASSED ONLY BY NINETEEN NINETY TWO'S HURRICANE ANDREW WITH SIXTEEN POINT FIVE BILLION DOLLARS IN INSURED LOSSES AND FOUR POINT TWO BILLION DOLLARS FROM HURRICANE HUGO IN NINETEEN EIGHTY NINE IF OUR ESTIMATES HAVE TO BE REVISED AGAIN IT WOULD BE BECAUSE OF ADDITIONAL CLAIMS FROM HIDDEN DAMAGE SAYS JIM WELSH AN ADJUSTOR WITH PROPERTY CLAIM SERVICES ENRICHED BY GAINS ON ITS ENDOWMENT FUND THE HOWARD HUGHES MEDICAL INSTITUTE IS BROADLY EXPANDING ITS TEAM OF INVESTIGATORS DOING BASIC BIOMEDICAL RESEARCH THE CHEVY CHASE MARYLAND INSTITUTE WHOSE FINANCIAL ASSETS OF SEVEN POINT EIGHT BILLION DOLLARS MAKE IT THE BIGGEST PRIVATE PHILANTHROPY IN THE COUNTRY PLANS TO ADD FORTY NINE SCIENTISTS AT A COST OF ABOUT THIRTY MILLION DOLLARS A YEAR TO ITS NATIONWIDE TEAM OF TWO HUNDRED TWENTY FIVE INVESTIGATORS THE INVESTIGATORS AND THEIR WORK ARE FUNDED BY THE INSTITUTE BUT THE SCIENTISTS THEMSELVES STAY AT THEIR HOME UNIVERSITIES AND HOSPITALS FOUNDED IN NINETEEN FIFTY THREE BY ECCENTRIC BILLIONAIRE AVIATOR HOWARD HUGHES THE PRIVATE MEDICAL RESEARCH ORGANIZATION'S ENDOWMENT SWELLED BY SOME FIVE POINT TWO BILLION DOLLARS AFTER THE NINETEEN EIGHTY FIVE SALE OF HUGHES AIRCRAFT COMPANY TO GENERAL MOTORS CORPORATION LAST YEAR ITS ENDOWMENT GREW BY SEVEN HUNDRED EIGHTY MILLION DOLLARS PURNELL CHOPPIN PRESIDENT OF THE INSTITUTE SAID THAT QUOTE BY VIRTUE OF THE SUCCESS OF OUR ENDOWMENT WE CAN EXPAND AT A TIME WHEN THE OPPORTUNITY FOR RESEARCH IS ENORMOUS AND SUPPORT BY THE FEDERAL GOVERNMENT IS LEVELING OFF QUOTE WHILE THE INSTITUTE DIDN'T REVEAL THE NAMES OF THE NEW INVESTIGATORS IT NOTED TWENTY ONE ARE WOMEN AND SIX ARE MINORITIES ONLY TWENTY TWO OF THE TWO HUNDRED TWENTY FIVE CURRENT INVESTIGATORS ARE WOMEN ONE OF THE THINGS WE'RE VERY CONCERNED ABOUT IS TO INCREASE THE NUMBER OF WOMEN IN THE PIPELINE DOCTOR CHOPPIN SAID ANOTHER CONCERN WAS EMPHASIZING EARLY STAGE CAREERS HE ADDED THE SCIENTISTS WERE CHOSEN AFTER A NATIONAL COMPETITION AMONG MORE THAN TWO HUNDRED INSTITUTIONS THAT BEGAN IN MARCH THE CONTEST SELECTED FORTY FOUR SCIENTISTS FIVE WERE ADDED AS NORMAL APPOINTMENTS THE TWENTY TWO PERCENT INCREASE IN THE NUMBER OF INVESTIGATORS COMES AT A TIME WHEN THE BREAKTHROUGHS IN BASIC SCIENCE PARTICULARLY IN GENETICS AND MOLECULAR BIOLOGY ARE OCCURRING AT AN EXTRAORDINARY RATE SAYS JEROME P. KASSIRER EDITOR IN CHIEF OF THE NEW ENGLAND JOURNAL OF MEDICINE AT THE SAME TIME FUNDING FOR THE EXPENSIVE WORK HASN'T INCREASED AT A RATE SUFFICIENT TO KEEP UP WITH WHAT IS REQUIRED IN THIS KIND OF RESEARCH DOCTOR KASSIRER ADDED STILL THE INSTITUTE'S BUDGET THIS YEAR OF SOME THREE HUNDRED THIRTY THREE MILLION DOLLARS IS ONLY ABOUT THREE PERCENT OF THE BUDGET OF THE NATIONAL INSTITUTES OF HEALTH WHICH IS ABOUT ELEVEN BILLION DOLLARS IN THE FISCAL YEAR ENDING AUGUST THIRTY FIRST THE INSTITUTE WILL SPEND SOME TWO HUNDRED EIGHTY MILLION DOLLARS ON RESEARCH AND PROVIDE FIFTY THREE MILLION DOLLARS IN GRANTS THE INSTITUTE'S DOCTOR CHOPPIN SAID HE ADDED IT PLANS TO SIGNIFICANTLY EXPAND ITS GRANTS PROGRAM TAX LAWS REQUIRE THE MEDICAL RESEARCH ORGANIZATION TO SPEND AT LEAST THREE POINT FIVE PERCENT OF ITS ENDOWMENT ANNUALLY THE INVESTIGATORS' WORK HAS EMPHASIZED GENETICS CELL BIOLOGY IMMUNOLOGY NEUROSCIENCE AND STRUCTURAL BIOLOGY WITH APPLICATION TO DISEASES SUCH AS CANCER ACQUIRED IMMUNE DEFICIENCY SYNDROME TUBERCULOSIS AND GENETIC DISEASES FOR INSTANCE SOME THIRTY FIVE INVESTIGATORS RECENTLY WERE WORKING IN ONE WAY OR ANOTHER ON AIDS DOCTOR CHOPPIN SAID THE ORGANIZATION SUPPORTS MORE THAN TWENTY ONE PERCENT OF ALL PRIVATE NOT FOR PROFIT MEDICAL RESEARCH IN THE U. S. ABOUT ONE THIRD OF ITS SCIENTISTS WORK ON SPECIFIC DISEASES AND FIVE OF ITS INVESTIGATORS HAVE WON NOBEL PRIZES WHEN THE COMPETITION FOR NEW INVESTIGATORS WAS HELD THE INSTITUTE ENVISIONED ADDING TWELVE SCIENTISTS BUT KEPT INCREASING THE NUMBER AS ITS INVESTMENT PORTFOLIO GAINED GROUND AS THE YEAR WORE ON WE INCREASED IT TO THIRTY BY AUGUST AND WE MADE THE FINAL STAGES IN MID JANUARY SAID DOCTOR CHOPPIN GRAHAM HARRISON THE INSTITUTE'S CHIEF INVESTMENT OFFICER GIVES MUCH OF THE CREDIT FOR THE PORTFOLIO'S TOTAL RETURN OF FIFTEEN POINT SEVEN PERCENT TO ITS EQUITY COMPONENT AND PARTICULARLY TO ITS INTERNATIONAL HOLDINGS AT YEAR END THE FUND THEN VALUED AT SEVEN POINT SIX FOUR BILLION DOLLARS WAS FIFTY FOUR POINT THREE PERCENT INVESTED IN EQUITIES INCLUDING SIX HUNDRED SIXTY FIVE MILLION DOLLARS IN G. M. STOCK WITH MOST OF THE BALANCE IN FIXED INCOME SECURITIES OF THE EQUITIES SOME TWENTY FIVE PERCENT WERE FOREIGN WITH QUOTE GOOD VISIBILITY AND EXPOSURE TO MEXICO QUOTE AND QUOTE VERY LITTLE EXPOSURE TO JAPAN QUOTE HE SAID G. M. SHARES DOMINATED THE PORTFOLIO IN NINETEEN EIGHTY FIVE WHEN MR. HARRISON JOINED THE INSTITUTE AFTER RUNNING THE FORMER U. S. STEEL'S PENSION FUND AT THE TIME THE INSTITUTE RECEIVED TWO POINT SEVEN BILLION DOLLARS IN CASH AND ONE HUNDRED MILLION SHARES OF G. M.'S NEWLY CREATED CLASS H. COMMON STOCK FOR THE SALE OF HUGHES AIRCRAFT UNDER TERMS OF A COMPLEX NINETEEN EIGHTY NINE RESTRUCTURING OF THE HUGHES AIRCRAFT SALE THE INSTITUTE CURRENTLY HOLDS FIFTEEN MILLION CLASS H. SHARES UNDER A THIRTY DOLLAR A SHARE PUT OPTION THAT EXPIRES IN MARCH OF NINETEEN NINETY FIVE A PUT OPTION ENABLES A HOLDER TO SELL A SECURITY AT A SPECIFIED PRICE USUALLY WITHIN A LIMITED PERIOD THE INSTITUTE STANDS TO RECEIVE FOUR HUNDRED FIFTY MILLION DOLLARS IF IT SELLS THE STOCK TO G. M. IN NINETEEN NINETY FIVE AT THIRTY DOLLARS A SHARE BUT THE SHARES WERE TRADING YESTERDAY AT THIRTY SEVEN POINT EIGHT SEVEN FIVE DOLLARS UP TWELVE POINT FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE INSTITUTE COULD MAKE MORE ON THE SHARES IF G. M. DECIDES TO RECLAIM THE STOCK UNDER A THIRTY SEVEN DOLLAR AND FIFTY CENT A SHARE CALL OPTION THE AUTO MAKER HOLDS ON THE SHARES WHICH ENABLES THE OPTION HOLDER TO BUY SHARES AT A SPECIFIED PRICE SUCH A MOVE COULD GIVE THE INSTITUTE ONE HUNDRED TWELVE MILLION DOLLARS MORE THAT'S A CONCEIVABLE WINDFALL THAT'S WAITING OUT THERE SAID MR. HARRISON ALL NIPPON AIRWAYS JAPAN'S SECOND LARGEST AIRLINE SAID IT EXPECTS FLAT EARNINGS FOR THE FISCAL YEAR ENDING MARCH THIRTY FIRST BUT SEES A MODEST RECOVERY NEXT YEAR QUOTE THE TOTAL NUMBER OF JAPANESE TRAVELING ABROAD IS INCREASING QUOTE SAID KOJI YAMASHITA VICE PRESIDENT OF INTERNATIONAL PASSENGER MARKETING AND SALES AT ALL NIPPON BUT PASSENGERS ARE SPENDING LESS ON AIR FARES BY CHOOSING CHEAP TICKETS WHENEVER POSSIBLE MR. YAMASHITA SAID IN AN INTERVIEW THE MOVE TOWARD DISCOUNT AIR FARES PROBABLY WILL CONTINUE EVEN IF JAPAN'S SLUMPING ECONOMY RECOVERS BECAUSE THE DOWNTURN HAS BROUGHT ON A WAVE OF THRIFTINESS IN JAPAN THAT WON'T DISAPPEAR HE SAID ANA WHICH ANNOUNCED A RESTRUCTURING PROGRAM IN AN EFFORT TO TRIM COSTS EARLIER THIS WEEK WILL ALSO TRY TO BOOST SALES THROUGH MARKETING EFFORTS MR. YAMASHITA SAID OUR BASIC STRATEGY IS TO ALIGN WITH OTHER CARRIERS HE SAID ANA IS NEGOTIATING WITH OTHER INTERNATIONAL AIRLINES TO COOPERATE IN FREQUENT FLYER MILEAGE CREDIT PROGRAMS AND EXPECTS TO ANNOUNCE NEW TIE UPS IN THE NEAR FUTURE MR. YAMASHITA SAID FOR THE FISCAL YEAR THAT ENDED MARCH THIRTY FIRST NINETEEN NINETY THREE ANA'S PRETAX PROFIT FELL THIRTY FOUR PERCENT TO THIRTEEN POINT THREE BILLION YEN ONE HUNDRED TWENTY TWO POINT EIGHT MILLION DOLLARS FROM TWENTY POINT ONE BILLION YEN THE YEAR EARLIER EVERYBODY KNOWS WOMEN LOVE CLOTHES OR DO THEY RETAILERS AREN'T QUITE SURE WHY WOMEN DIDN'T BUY CLOTHES WITH THEIR USUAL GUSTO LAST YEAR ONE EASY BUT UNCONVINCING ANSWER IS LOWER INTEREST RATES WHICH MAKE DURABLES LIKE FURNITURE AND CARS MORE AFFORDABLE QUOTE BUT THAT ALONE CAN'T EXPLAIN IT QUOTE SAYS CARL PRIESTLAND CHIEF ECONOMIST FOR THE AMERICAN APPAREL MANUFACTURERS ASSOCIATION NOR CAN WEATHER ANOTHER POPULAR EXPLANATION WEATHER IS ALWAYS UNPREDICTABLE THE TRUTH IS SEVERAL TRENDS CONVERGED LAST YEAR THAT MADE WOMEN RETHINK THEIR RELATIONSHIP TO CLOTHES HERE ARE SIX OF THEM CLOTHES DEPARTMENTS EXPECIALLY IN BIG STORES LOOK LIKE NUNNERIES I GO IN ALL READY TO BUY AND I SEE A BUNCH OF BLACK AND NEUTRALS COMPLAINS JUDITH LANGER A CONSUMER MARKET RESEARCHER IN NEW YORK MARVIN GOLDSTEIN PRESIDENT OF DAYTON HUDSON CORPORATION'S DEPARTMENT STORE DIVISION SAYS WHEN TIMES ARE TOUGH APPAREL MAKERS WOULD RATHER NOT GAMBLE ON COLOR COLORS CAN BE FADDISH REMEMBER NEON BUT BLACK ENDURES APPAREL MAKERS ON THE OTHER HAND BLAME THE STORE BUYERS I'M SCREAMING AT THE DESIGNERS WE NEED COLOR WE NEED COLOR BUT THEN THE STORE KEEPERS END UP SELECTING OUR SOPHISTICATED BLACKS AND NEUTRALS SAYS HOWARD BLOOM CHIEF EXECUTIVE OF CHETTA B. INCORPORATED A WOMEN'S APPAREL MAKER SUSAN GARFIELD LAST YEAR BOUGHT TWO BLACK SWEATERS A BLACK TURTLENECK AND BLACK WOOL PANTS BLACK MAKES A BODY LOOK SLIMMER AND IT'S ALWAYS SAFE SAYS MS. GARFIELD A BOOKSTORE EMPLOYEE IN CAMBRIDGE MASSACHUSETTS I DON'T HAVE TO DEAL WITH MATCHING COLORS WENDY LIEBMANN PRESIDENT OF WSL MARKETING TELLS OF A BARNEYS NEW YORK SHOPPER WHO ASKED A SALESPERSON WHY THE STORE ONLY CARRIED BLACK CLOTHES WE DON'T CARRY ONLY BLACK THE SALESPERSON REPLIED QUOTE WE ALSO HAVE GRAY QUOTE RETAILERS MUST PREDICT WHAT SKIRT LENGTHS WILL BE FASHIONABLE AT LEAST SIX MONTHS BEFORE THE CLOTHES WILL ARRIVE IN STORES THE RETAILERS CHOSE LONG AND WRONG FOR NINETY THREE APPAREL MAKERS CONSTANTLY EXPERIMENT WITH SKIRT LENGTHS HOPING TO START A NEW TREND I THINK IT WAS AN EFFORT BY SOME DESIGNERS TO KICK START THE BUSINESS A LITTLE BIT SPECULATES MR. BLOOM OF CHETTA B. ALAN MILLSTEIN OF FASHION NETWORK REPORT SAYS DESIGNERS ALREADY HAD HIKED UP HEMLINES SO HIGH THERE WAS NOWHERE LEFT TO GO BUT DOWN BUT DESIGNERS' RUNWAYS MAGAZINES AND TELEVISION SHOWED SHORTER SKIRTS AND WITH HIGH FASHION COMMENTARY REACHING THE MAINSTREAM BY WAY OF ELSA KLENSCH OF C. N. N. AND CINDY CRAWFORD OF M. T. V. EVEN THE FASHION HINTERLANDS CAN'T BE FOOLED JANET DIEDERICHS A CHICAGO PUBLIC RELATIONS CONSULTANT CALLS THE LONG LOOK TOO DUMPY LOOKING THEY AGE THE WEARER SHORT SKIRTS HAVE THE VIRTUE OF SHOWCASING THE LEGS WHICH HOLD UP TO THE CHALLENGES OF AGING BETTER THAN SOME OTHER PARTS OF THE BODY RUTH RUBINSTEIN A NEW YORK FASHION SOCIOLOGIST SAYS LONG SKIRTS A MORE RESTRICTIVE LOOK POPULAR IN THE NINETEEN THIRTIES WORK BETTER IF WOMEN ARE DEPRESSED ABOUT THE ECONOMY STYLES TEND TO REFLECT CONSUMER CONFIDENCE IN NINETEEN EIGHTY NANCY REAGAN WORE A RED BODY HUGGING DRESS TO THE INAUGURATION UNLESS YOU'RE MAKING SHROUDS SAYS MR. MILLSTEIN SEX APPEAL IS A PAYING PROPOSITION WHO ARE THESE PEOPLE CATERING TO WONDERS SHEILA M. ENTENMAN CITING THE BILLOWY ROMANTIC BLOUSES AND BABY DOLL DRESSES RETAILERS FLOGGED LAST YEAR QUOTE I'M SORRY BUT THOSE JUST WON'T WORK QUOTE ON THE JOB SHE SAYS MS. ENTENMAN A CHICAGO LAWYER LAUGHS ABOUT SKIN TIGHT BODY SUITS OFTEN ADVERTISED WITH JEANS AND SKIRTS DITTO FOR NINETEEN NINETY THREE'S GRUNGE BELL BOTTOMS PLATFORM SHOES AND VELVET EVERYTHING WORKING WOMEN DON'T WANT PIRATE STYLE CUFFS THAT GET CAUGHT IN FAX MACHINES AND FILE CABINETS CONSUMERS TODAY WANT WELL DESIGNED TIMELY NOT GIMMICKY GOOD VALUE CLOTHING THEY CAN COMFORTABLY WEAR TO WORK TONE DOWN FOR THE WEEKEND AND TONE UP FOR AN EVENING OUT SAYS MS. LIEBMANN OF WSL MARKETING CONSUMERS' CLOSETS ARE FULL OF BASIC GAP LIKE CLOTHING CITING A LACK OF INVENTIVE STYLES FOR ITS BUYERS TO CHOOSE FROM MERCANTILE STORES COMPANY A FAIRFIELD OHIO DEPARTMENT STORE CHAIN SAYS THERE'S NO REALLY COMPELLING REASON FOR CONSUMERS TO UPDATE THEIR FASHION WARDROBE MS. DIEDERICHS WHO SHOPS THE SALES ALONG CHICAGO'S MICHIGAN AVENUE SAYS STYLES AND BRANDS ARE SO REPETITIVE THAT IF SHE DOESN'T FIND A GOOD PRICE ON A DRESS AT SAY NEIMAN MARCUS SHE TRIES SAKS FIFTH AVENUE ACROSS THE STREET DESIGNERS AND APPAREL MAKERS ARGUE IT'S NOT THE DESIGNERS WHO ARE TOO CONSERVATIVE BUT THE RETAILERS GONE ARE THE MERCHANTS WITH AN EYE FOR STYLE THEY SAY INSTEAD EFFICIENT BUYERS BRISKLY REPLENISH THE PROVEN CROP OF STYLES THAT'S FINE FOR JOCKEY SHORTS BUT NOT FOR THE FASHION BUSINESS SAYS BERNARD HOLTZMAN PRESIDENT AND CHIEF DESIGNER FOR WOMEN'S WEAR MAKER HARVE BENARD LIMITED RETAILERS ARE DECRYING SOMETHING THEY FOSTERED THEMSELVES CAROL FARMER A BOCA RATON FLORIDA CONSULTANT CALLS THE PHENOMENON CLOSET BASED CYNICISM IN STORES SHOPPERS KEEP SEEING VERSIONS OF CLOTHES THEY ALREADY HAVE AND SINCE SO MANY DIFFERENT HEMLINES AND STYLES ARE ACCEPTABLE NOW CLOTHES CAN BE KEPT AND RECYCLED PROFESSIONAL WOMEN HAVE COME A LONG WAY BABY THE WOMEN WHO A DECADE AGO FELT THEY HAD TO BUY EXPENSIVE POWER SUITS TO GET AHEAD NOW REALIZE THEY DON'T HAVE TO LOOK A CERTAIN PART TO CLIMB THE LADDER QUOTE WOMEN ARE REALLY PAST THE PROVE IT STAGE QUOTE SAYS MS. LANGER THE MARKET RESEARCHER WOMEN ARE TRYING TO GO TO THE OUTER EDGE OF INFORMALITY WITHOUT FREAKING PEOPLE OUT SAYS MS. FARMER THAT KIND OF CLOTHING ISN'T ALWAYS EASY TO FIND THIS IS THE HARDEST YEAR I'VE EVER HAD SHOPPING SAYS JAN MCLAUGHLIN A PERSONAL SHOPPER IN SEATTLE WHOSE CLIENTS ARE BABY BOOMER PROFESSIONALS WHO WANT PANTS AND EASY JACKETS WITH SOFT BLOUSES OR SWEATERS UNDERNEATH DESIGNER CAROLE LITTLE'S BEST SELLERS LAST YEAR FELL INTO THIS SO CALLED SOFT CAREER DRESSING GENRE AS BABY BOOMERS AGE BUY HOMES AND HAVE CHILDREN TRENDY CLOTHING ISN'T QUITE AS IMPORTANT TO THEM WE'RE GETTING REAL AS WE GET TO MIDDLE AGE WE DON'T LOOK AS GREAT AS WE USED TO WHY PLAY A GAME YOU CAN'T WIN SAYS MS. FARMER QUOTE CLOTHING TOTALLY DROPPED OFF MY LIST OF THINGS I LIKE TO SPEND MONEY ON I'D RATHER BUY A RUG SO I CAN LOOK AT IT EVERYDAY MS. ENTENMAN THE ATTORNEY PAID ONE HUNDRED TWENTY DOLLARS FOR A BEAUTIFUL BLACK AND WHITE HOUNDSTOOTH SWEATER ONLY TO HAVE HER TODDLER'S PINK EAR MEDICINE LEAK ALL OVER IT YOU DON'T WANT TO BE WEARING A SILK BLOUSE WHEN YOUR THREE YEAR OLD COMES AT YOU WITH PEANUT BUTTER AND JELLY ON HER FINGERS SHE SAYS HASBRO INCORPORATED SAID FOURTH QUARTER NET INCOME ROSE EIGHT PERCENT EVEN AFTER A RESTRUCTURING CHARGE ON A TWELVE PERCENT REVENUE INCREASE THE NATION'S BIGGEST TOY MAKER WHICH IS BASED IN PAWTUCKET R. I. SAID NET INCOME ROSE TO SEVENTY POINT SEVEN MILLION DOLLARS OR SEVENTY EIGHT CENTS A SHARE FROM SIXTY FIVE POINT SIX MILLION DOLLARS OR SEVENTY THREE CENTS A SHARE NET IN THE LATEST PERIOD INCLUDED A PREVIOUSLY REPORTED CHARGE OF FIFTEEN POINT FIVE MILLION DOLLARS RELATED TO COSTS OF CLOSING A FACILITY IN THE NETHERLANDS AND LAYING OFF ONE HUNDRED SIXTY TWO EMPLOYEES THERE THE COMPANY SAID PROFIT WOULD HAVE RISEN TWENTY TWO PERCENT WITHOUT THE CHARGE REVENUE ROSE TO NINE HUNDRED THIRTY TWO POINT TWO MILLION DOLLARS FROM EIGHT HUNDRED THIRTY ONE POINT THREE MILLION DOLLARS IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY HASBRO SHARES ROSE TWENTY FIVE CENTS TO THIRTY FOUR POINT ONE TWO FIVE DOLLARS THE AMERICAN STOCK EXCHANGE AS EXPECTED NAMED RICHARD F. SYRON FEDERAL RESERVE BANK OF BOSTON PRESIDENT AS ITS NEW CHAIRMAN MR. SYRON FIFTY YEARS OLD SUCCEEDS JAMES R. JONES WHO LEFT THE EXCHANGE LAST SUMMER TO BECOME U. S. AMBASSADOR TO MEXICO MR. SYRON WILL ASSUME OFFICE APRIL FIRST ACCORDING TO PEOPLE CLOSE TO THE SEARCH MR. SYRON WILL RECEIVE CASH COMPENSATION OF ABOUT ONE MILLION DOLLARS MR. SYRON'S SALARY AT THE FEDERAL RESERVE BANK OF BOSTON WHERE HE HAS BEEN PRESIDENT SINCE JANUARY NINETEEN EIGHTY NINE IS ONE HUNDRED SEVENTY SEVEN THOUSAND SIX HUNDRED DOLLARS MR. SYRON SAID ONE OF HIS GOALS AS CHAIRMAN WILL BE TO DO A BETTER JOB OF INFORMING INVESTORS AND COMPANIES OF THE ADVANTAGE OF AN AUCTION MARKET RATHER THAN A DEALER MARKET SUCH AS THE NASDAQ STOCK MARKET IN RECENT YEARS AMEX HAS BEEN HURT BECAUSE MANY OF THE SMALL AND MEDIUM SIZE COMPANIES THAT ARE POTENTIAL CANDIDATES FOR LISTING ON THE AMERICAN EXCHANGE INSTEAD HAVE GONE TO NASDAQ MR. SYRON SAID HE THINKS THE DERIVATIVES BUSINESS IS A NICHE THAT THE EXCHANGE CAN EXPAND UPON DERIVATIVES ARE HYBRID SECURITIES BASED ON AN UNDERLYING STOCK INDEX OR COMMODITY IN WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID THE FED QUOTE WILL MISS ESPECIALLY HIS THOUGHTFUL INSIGHTS TO MONETARY POLICY QUOTE A NEW PRESIDENT OF THE BOSTON FED WILL BE CHOSEN BY THE BANK'S PRIVATE SECTOR DIRECTORS SUBJECT TO APPROVAL OF THE FED BOARD THE MUCH HERALDED AGE OF PERSONAL DIGITAL COMMUNICATING HAS GOTTEN OFF TO A ROCKY START BUT JUST WAIT THE CURRENT PROBLEM CAN BE SUMMED UP IN ONE WORD NEWTON APPLE COMPUTER INCORPORATED RAISED EXPECTATIONS BY HEAVILY PROMOTING ITS NEWTON MESSAGEPAD AS THE FIRST PERSONAL DIGITAL ASSISTANT A HAND HELD WIRELESS COMMUNICATOR THAT COULD LINK PERSONAL FILES ADDRESSES AND LISTS AND EVEN CONVERT HANDWRITING TO DIGITAL TYPE BUT WHEN THE PRODUCT ARRIVED IN STORES IT COULDN'T RECOGNIZE HANDWRITING PARTICULARLY WELL COULDN'T COMMUNICATE AT ALL WITHOUT LOTS OF COSTLY ADDITIONAL GEAR AND WAS WIDELY RIDICULED THE NEWTON SAYS MICROSOFT CORPORATION CHAIRMAN WILLIAM H. GATES MAY HAVE QUOTE SET THE CATEGORY BACK A COUPLE OF YEARS QUOTE TO BE FAIR THE NEWTON SHOULDN'T GET ALL THE BLAME IT WAS FOLLOWED BY OTHER OSTENSIBLE P. D. A.S THE ZOOMER A PERSONAL ORGANIZER FROM CASIO COMPUTER COMPANY AND TANDY CORPORATION THAT COMMUNICATES MAINLY WITH A DESIGNATED DESKTOP COMPUTER AND BELLSOUTH CORPORATION'S SIMON A CELLULAR PHONE THAT CAN STORE FILES AS WELL AS TRY TO SEND FAXES AND ELECTRONIC MAIL OVER A CHANCY ANALOG TRANSMISSION SYSTEM SO FAR THESE P. D. A.S ARE MORE FRUSTRATING TO USE AND MORE TIME CONSUMING THAN WHAT THEY PURPORT TO REPLACE SAYS ALAN REITER EDITOR OF MOBILE DATA REPORT A NEWSLETTER IN ALEXANDRIA VIRGINIA THEY ARE BETA TEST PRODUCTS BEING SOLD AS COMMERCIAL PRODUCTS HERSCHEL SHOSTECK A CELLULAR PHONE ANALYST IN SILVER SPRING MARYLAND SAYS P. D. A.S ARE ABOUT AS USEFUL AS MAGNETS ON REFRIGERATOR DOORS WHICH CAN HOLD SCHEDULES OF MEETINGS PHONE NUMBERS AND PERSONAL CALENDARS UNTIL P. D. A.S OFFER THE SAME PRICES AND ROBUSTNESS AS KITCHEN MAGNETS THERE'S A LIMITED MARKET BUT DON'T BE MISLED BY THE EARLY BUNGLING DESPITE THE BAD START AND WIDESPREAD SKEPTICISM P. D. A.S ARE STILL LIKELY SOMETIME IN THE NOT TOO DISTANT FUTURE TO TRANSFORM THE WAY MANY PEOPLE COMMUNICATE PERHAPS RIVALING OR EXCEEDING CELLULAR PHONES OR PERSONAL COMPUTERS IN THEIR IMPACT THAT'S BECAUSE WITHIN THREE TO FIVE YEARS P. D. A.S WILL BE FINE TUNED TO AUTOMATE INTEGRATE FILTRATE AND LOCATE ALL KINDS OF VALUABLE INFORMATION FOR P. D. A.S TO BECOME A COMPELLING MASS MARKET PRODUCT THREE THINGS MUST HAPPEN WIRELESS NETWORKS MUST BECOME UBIQUITOUS AND RELIABLE LOTS OF USEFUL SERVICES MUST BE AVAILABLE OVER THOSE NETWORKS AND THE DEVICES MUST OFFER MANY USEFUL FUNCTIONS IT'S THE COMBINATION THAT WILL MAKE P. D. A.S IRRESISTIBLE FOR SOME PEOPLE WHILE P. C.S AND OTHER DEVICES MAY BE ABLE TO DUPLICATE THE SERVICES AND FUNCTIONS P. D. A.S WILL DELIVER THEM ALONG WITH POWERFUL MESSAGING AND COMMUNICATING CAPABILITY WHEREVER AND WHENEVER A USER WANTS THE FOUNDATION FOR MEETING THOSE THREE CONDITIONS HAS ALREADY BEEN LAID TWO COMPANIES ARDIS A JOINT VENTURE OF MOTOROLA INCORPORATED AND INTERNATIONAL BUSINESS MACHINES CORPORATION AND RAM MOBILE DATA OWNED BY BELLSOUTH CORPORATION OF ATLANTA AND RAM BROADCASTING CORPORATION OF WOODBRIDGE N. J. ALREADY OFFER WIRELESS NETWORKS BUT ONLY FOR DATA AND ONLY IN METROPOLITAN AREAS MCCAW CELLULAR COMMUNICATIONS INCORPORATED OF KIRKLAND WASHINGTON PLANS A MORE COMPREHENSIVE WIRELESS DATA NETWORK CALLED CELLULAR DIGITAL PACKET DATA OR CDPD THAT WILL OVERLAP WITH ITS EXISTING ANALOG CELLULAR SYSTEM CDPD USERS WITH DUAL MODE CELLULAR PHONES OR P. D. A.S COULD HANDLE BOTH VOICE AND DATA WITHOUT THE TRANSMISSION ERRORS AND BREAKDOWNS COMMON IN ANALOG SYSTEMS INCLUDING CURRENT CELLULAR NETWORKS BARRING PROBLEMS CDPD COULD BE AVAILABLE NATIONWIDE IN TWO TO THREE YEARS IF MCCAW'S EFFORTS FLOUNDER A LACK OF AGREEMENT ON STANDARDS COULD FORCE P. D. A. USERS TO WAIT ANOTHER YEAR OR TWO FOR WIDESPREAD INSTALLATION OF SO CALLED PERSONAL COMMUNICATIONS SERVICES CAPABLE OF CARRYING BOTH VOICE AND DATA OTHER COMPANIES ARE AT WORK TO MAKE P. D. A.S EASIER TO USE AND MORE FUNCTIONAL GENERAL MAGIC INCORPORATED A CONSORTIUM WHOSE MEMBERS INCLUDE APPLE AND AMERICAN TELEPHONE AND TELEGRAPH COMPANY LAST MONTH INTRODUCED A POWERFUL PROGRAM CALLED MAGIC CAP WHICH SIMPLIFIES MANY COMMUNICATIONS TASKS DESIGNED TO BE AN OPERATING SYSTEM FOR P. D. A.S AND LATER AN APPLICATION PROGRAM FOR P. C.S MAGIC CAP COULD BE TO P. D. A.S WHAT THE MACINTOSH OPERATING SYSTEM WAS TO P. C.S A BETTER SIMPLER WAY TO DO THINGS THAT BECOMES THE INDUSTRY MODEL AT THE SAME TIME A. T. AND T. AND GENERAL MAGIC ANNOUNCED PLANS TO INTRODUCE A SERVICE THIS SUMMER CALLED PERSONALINK WHICH MAY ADD MORE VALUE TO P. D. A.S THAN ANYTHING ELSE IT WILL CREATE AN INTELLIGENT NETWORK SERVICE ALLOWING A P. D. A. USER TO LAUNCH ELECTRONIC AGENTS POWERFUL WAYS TO FILTER AND FIND INFORMATION FROM EXTERNAL NETWORKS EVEN WHILE YOU'RE NOT ON LINE MOTOROLA IS EXPECTED TO BE THE FIRST TO MARKET WITH A WIRELESS P. D. A. USING MAGIC CAP AND CAPABLE OF USING PERSONALINK THE SCHAUMBURG ILLINOIS COMPANY PLANS TO BEGIN SELLING IT SOMETIME LATE IN THE FIRST HALF OF THIS YEAR JAPAN'S SONY CORPORATION WILL OFFER A SIMILAR P. D. A. AT ABOUT THE SAME TIME BUT ITS DEVICE MAY HAVE ONLY A WIRED TELEPHONE LINK PHILIPS ELECTRONICS N. V. OF THE NETHERLANDS AND THE PANASONIC DIVISION OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL COMPANY ARE EXPECTED TO INTRODUCE SIMILAR PRODUCTS LATE THIS YEAR OR EARLY IN NINETEEN NINETY FIVE ALL FOUR COMPANIES ARE GENERAL MAGIC BACKERS IT'S DIFFICULT EVEN FOR WIRELESS SPECIALISTS TO UNDERSTAND PRECISELY HOW A NEW KIND OF PERSONAL DIGITAL COMMUNICATING WILL EVOLVE FROM THESE DEVELOPMENTS OR HOW APPEALING IT WILL PROVE QUOTE HOW MANY PEOPLE USING CELLULAR PHONES NOW WERE CHOMPING AT THE BIT TO USE THEM IN NINETEEN EIGHTY TWO QUOTE MR. REITER ASKS HOW MANY PEOPLE RIDING RAILWAYS IN THE EIGHTEEN HUNDREDS WERE DEMANDING AIRPLANE TICKETS THE INTERESTING THING ABOUT THIS MARKET IS THAT EVEN SMART PEOPLE DON'T KNOW WHAT IS GOING TO HAPPEN MUCH OF THE UNCERTAINTY CENTERS ON INTELLIGENT NETWORKING A TOOL UNLIKE ANYTHING AVAILABLE TO NETWORK USERS TODAY A. T. AND T.'S PERSONALINK SERVICE IS BASED ON COMMUNICATIONS SOFTWARE DEVELOPED BY GENERAL MAGIC CALLED TELESCRIPT IF A P. D. A. WITH TELESCRIPT SOFTWARE IS CONNECTED THROUGH PERSONALINK TO A SERVICE PROVIDER WITH TELESCRIPT THE P. D. A. USER WILL BE ABLE TO REMOTELY PROGRAM THE PROVIDER'S COMPUTER TO DO IMPORTANT THINGS THAT SAVE THE USER VALUABLE TIME OR TO HELP LOCATE THINGS AND SERVICES THAT MAY BE HARD TO FIND STARTING THIS SUMMER PEOPLE WILL BE ABLE TO USE PERSONALINK TO FILTER COMMUNICATIONS BETWEEN TELESCRIPT EQUIPPED DEVICES AN IMPORTANT FUNCTION IN AN ERA OF INFORMATION OVERKILL BY CLICKING A MOUSE OR TAPPING A STYLUS ON SOME SIMPLE RULES IN A FILE USERS CAN INSTRUCT THE NETWORK TO ASSIGN PRIORITIES OR ATTRIBUTES TO MESSAGES BOTH COMING AND GOING TELL PERSONALINK TO FAX AN EXPECTED INCOMING MESSAGE TO EIGHTEEN COLLEAGUES AROUND THE WORLD HAVE IT BEEP THE P. D. A. IF THE BOSS OR BABYSITTER SENDS A MESSAGE BUT DUMP MESSAGES FROM AN EX HUSBAND IN A TRASH CAN THE MORE FUTURISTIC PART OF INTELLIGENT NETWORKING INVOLVES ELECTRONIC AGENTS DOING REMOTE SEARCHING MATCHING AND COMPILING AT THE USER'S BIDDING TO OFFER A HYPOTHETICAL EXAMPLE INVOLVING TODAY'S NETWORKS IT WOULD BE LIKE DISPATCHING SOMEONE INTO THE PRODIGY ON LINE SERVICE TO COLLECT TRAVEL INFORMATION YOU REQUESTED SAY ABOUT TRAVEL TO HAWAII WHILE YOU DO SOMETHING ELSE ON YOUR P. D. A. OR EVEN WHILE IT'S TURNED OFF OVER TIME AIRLINES RESTAURANTS AND OTHER SERVICE PROVIDERS ARE EXPECTED TO SIGN UP WITH NETWORKS LIKE PERSONALINK TO OBTAIN A SORT OF ELECTRONIC EIGHT HUNDRED NUMBER ACCESS TO CONSUMERS IF ENOUGH SIGN UP CONSUMERS AND BUSINESSES WILL BE ABLE TO FIND EACH OTHER IN A KIND OF NATIONWIDE ELECTRONIC MARKETPLACE A COMMERCIAL INTERNET MICHAEL P. SCHULHOF CHIEF EXECUTIVE OF SONY CORPORATION OF AMERICA ENVISIONS THE DAY WHEN A CONSUMER HEARING A SONG HE LIKES ON HIS P. D. A. WILL BE ABLE TO USE THE DEVICE TO IDENTIFY THE ALBUM BY A DIGITAL CODE CONTAINED IN THE BROADCAST SIGNAL HE COULD THEN TAP AN ICON SENDING A WIRELESS ORDER TO SONY THROUGH PERSONALINK SONY WOULD SHIP HIM THE C. D. BILLED TO A PREVIOUSLY ENTERED VISA ACCOUNT NUMBER RICH MILLER ONE OF TELESCRIPT'S CO DEVELOPERS AT GENERAL MAGIC SAYS INTELLIGENT NETWORKING WILL EVOLVE TO INCLUDE ELECTRONIC REQUESTS FOR PROPOSALS SENT BY POTENTIAL BUYERS TO POTENTIAL SELLERS PUT OUT AN RFP FOR A NINETEEN FIFTY FIVE THUNDERBIRD THE ELECTRONIC AGENT NOT YOU WILL SEARCH NETWORKS FOR ALL POSTINGS OF SUCH CARS AND DOWNLOAD LISTS PRICES AND PHONE NUMBERS INTO THE P. D. A. OR BEEP YOU IF IT FINDS ONE THAT MEETS YOUR CRITERIA SAY IN GOOD CONDITION IN YOUR REGION FOR LESS THAN NINE THOUSAND DOLLARS PUT OUT AN RFP FOR A TWO WEEK HAWAIIAN VACATION IN AUGUST AND RANK RESPONSES BY COST OR A VALUE INDEX OF YOUR OWN MAKING OR CREATE A PERSONALITY AGENT THAT LISTS AS MANY INTERESTS AS YOU WANT FLOATING AROUND IN THE ETHER SO THE P. D. A. CAN CONTINUALLY MATCH YOU WITH SELLERS' OFFERINGS THIS AUTOMATION SETS INTELLIGENT NETWORKING APART FROM PREVIOUS EFFORTS AT ELECTRONIC MARKETPLACES SUCH AS VIDEOTEX MR. MILLER SAYS THE USER DOESN'T SEARCH HIS OR HER ELECTRONIC AGENT DOES THE SEARCH MECHANISMS NEEDED FOR THIS KIND OF MATCHING ALREADY EXIST IN ADVANCED DATABASE SOFTWARE CONSUMERS WILL BE ABLE TO USE P. C.S AND INTERACTIVE T. V.S IN THIS ELECTRONIC MARKETPLACE BUT IF THEY WANT THE POTENTIAL FOR QUICK ACCESS OR QUICK RESPONSE ANYWHERE ANYTIME THEY WILL SEE A NEED FOR P. D. A.S THAT DOESN'T EXIST TODAY THE POWER OF GENERAL MAGIC'S MAGIC CAP SOFTWARE IS THAT IT SIMPLIFIES THE USE OF INTELLIGENT AGENTS SO MUCH EVEN COMPUTER NONUSERS WILL BE ABLE TO EASILY AUTOMATE AND CUSTOMIZE COMMUNICATIONS THE SYSTEM PRESENTS USERS WITH THREE MAIN SCREENS A DESK A HALLWAY TO OTHER ROOMS IN YOUR HOUSE AND A MAIN STREET ALONG WHICH YOU CAN TRAVEL TAPPING OBJECTS ON THE DESK OPENS SOME BASIC FILES SUCH AS YOUR DIRECTORY OF NAMES ADDRESSES AND PHONE NUMBERS TAPPING ROOMS OPENS OTHER FILES SUCH AS A LIBRARY OF NEWS ARTICLES TAPPING BUILDINGS ON MAIN STREET PROVIDES ACCESS TO SERVICES SUCH AS AN A. T. AND T. BUILDING THAT ALLOWS YOU TO CUSTOMIZE YOUR MAILBOX AT PERSONALINK OR AN ELECTRONICS STORE THAT LETS YOU TAKE A VIRTUAL TOUR INSIDE SHOPPING FOR ELECTRONIC GEAR BY MORE TAPPING MAGIC CAP QUOTE IS A NAVIGATION METAPHOR DESIGNED TO REACH BEYOND COMPUTER USERS TO TELEPHONE AND T. V. USERS QUOTE SAYS ANDY HERTZFELD ONE OF ITS PRINCIPAL PROGRAMMERS THEY SHOULD BE ABLE TO TAP THEIR INTUITION AS TO HOW IT SHOULD WORK USING THEIR KNOWLEDGE OF THE PHYSICAL UNIVERSE THEY'VE LIVED IN ALL THEIR LIVES SOFTWARE COMPANIES AND SERVICE PROVIDERS WILL OFFER TO SEND FILES TO PLACE THEMSELVES IN YOUR SYSTEM WHEN YOU ACCEPT YOUR MAGIC CAP LANDSCAPE WILL CHANGE TO REFLECT THEIR PRESENCE THE INFORMATION WILL MOVE TO YOU EITHER BY MODEM OR IN THE FORM OF ELECTRONIC CREDIT CARD SIZE INSERTS THAT SLIP INTO SLOTS IN YOUR P. D. A. YOU CAN ALSO DOWNLOAD FILES FROM YOUR PERSONAL COMPUTER WITH A CABLE AND SOPHISTICATED P. D. A. USERS CAN USE PROGRAMMING TOOLS TO FASHION THEIR OWN DESK HALLWAY AND MAIN STREET OTHER OPERATING SYSTEMS WILL BE MODIFIED OR CREATED TO TAKE ADVANTAGE OF TELESCRIPT BUT MAGIC CAP THREE AND ONE HALF YEARS IN THE MAKING APPEARS TO HAVE A SIGNIFICANT LEAD IN MAKING BOTH P. D. A.S AND NETWORK SERVICES EASIER TO USE IT DOES SO PARTLY BY AUTOMATING THE PROGRAMMING THAT SENDS ELECTRONIC AGENTS INTO NETWORKS TO WORK FOR YOU IF DOW JONES NEWS SLASH RETRIEVAL AN ON LINE SERVICE OWNED BY DOW JONES AND COMPANY PUBLISHER OF THIS NEWSPAPER WERE HOOKED INTO PERSONALINK YOU COULD ENTER YOUR LIBRARY BY TAPPING THE DOOR THEN BY TAPPING IN A MENU OF RULES YOU COULD SEND MESSAGES IN TELESCRIPT ASKING TO BE ALERTED WHEN APPLE'S STOCK DROPS BELOW TWENTY DOLLARS A SHARE A MUSIC STORE ON MAIN STREET COULD CONTAIN SONY'S NUMBER FOR C. D.S OR TOWER RECORDS' NUMBER IF TOWER BELONGED TO PERSONALINK YOU COULD SEND AN AGENT MESSENGER TO AWAIT THE ARRIVAL OF THE LATEST PEARL JAM C. D. AT WHICH TIME THE AGENT WOULD BEEP YOUR P. D. A. THE IN BOX ON YOUR DESK CONTAINS RULES FOR PRIORITIZING MESSAGES TAPPING ON ONE RULE FOR INSTANCE ASSIGNS AN URGENT PRIORITY TO MESSAGES FROM YOUR WIFE ANY OR ALL INCOMING MESSAGES CAN BE AUTOMATICALLY ROUTED TO A FILE CABINET ON YOUR DESK SENDING MESSAGES IS EQUALLY AUTOMATED TAPPING OPEN THE STATIONERY DRAWER AT THE BOTTOM LEFT OF THE DESK PRESENTS A CHOICE OF POSTCARD LETTER URGENT POSTCARD ET CETERA TAPPING ONE PULLS IT OUT OF THE DRAWER WITH A NAME FINDER ON THE SIDE TAP A SCROLLER OR ALPHABETIC TABS TO INDICATE THE RECIPIENT AND TAP AGAIN YOU ARE THEN OFFERED A CHOICE OF THE RECIPIENT'S FAX E. MAIL PERSONALINK INTERNET OR TELEPHONE NUMBERS AND ADDRESSES TAP YOUR CHOICE AND THEN EITHER SCRIBBLE A NOTE ON THE SCREEN WITH THE STYLUS OR CALL UP A SCREEN KEYBOARD TO ENTER TYPED TEXT TAP A SELECTION OF QUOTE STAMPS QUOTE PRIORITY CODES OR SPECIAL ICONS THAT WILL HELP DETERMINE THE MESSAGE'S IMPORTANCE TO THE OTHER PERSON TAP THE SEND BUTTON AND OFF IT GOES IF YOU ARE SENDING TO ANOTHER MAGIC CAP USER YOU CAN EASILY INCLUDE A BIT OF SONG SUCH AS A FUNERAL DIRGE AND ANIMATED CHARACTERS SUCH AS A MAN RUNNING DOWNHILL PURSUED BY A HUGE BOULDER ONE OF MR. HERTZFELD'S FAVORITES EACH MAGIC CAP FUNCTION CAN ALSO BE USED BY SOFTWARE DEVELOPERS TO WRITE PROGRAMS THAT EXPAND ITS USES FOR THE LIBRARY MEAD DATA CENTRAL INCORPORATED DAYTON OHIO OFFERS DAILY NEWS SUMMARIES AND AMERICA ONLINE INCORPORATED VIENNA VIRGINIA ITS OWN MYRIAD SERVICES FOR THE FILE CABINET INTUIT INCORPORATED OF MENLO PARK CALIFORNIA OFFERS POCKET QUICKEN AN ELECTRONIC CHECKBOOK THAT CAN TRACK YOUR SPENDING IN SEVERAL DIFFERENT WAYS THE ICON FOR THAT FUNCTION IS A DOLLAR SIGN WITH WINGS AROUND MIDYEAR A COMPANY CALLED ESHOP INCORPORATED IN SAN MATEO CALIFORNIA WILL BEGIN SHIPPING STORES AND MALLS SOFTWARE THAT WILL ALLOW THEM TO BUILD VIRTUAL VERSIONS OF THEMSELVES ON INTERESTED CONSUMERS' MAIN STREETS THE SOFTWARE WILL PROVIDE MAGIC CAP USERS WITH PICTORIAL TOURS THROUGH THE STORES AND THEIR WARES BEWARE IF YOU TAP IT YOU MAY HAVE BOUGHT IT SOME INDUSTRY WATCHERS STILL SAY P. D. A.S WON'T OFFER ENOUGH UNIQUE FEATURES TO FIND A BROAD MARKET MR. SHOSTECK THE CELLULAR PHONE ANALYST SAYS MOST PEOPLE WILL STILL PREFER TO COMMUNICATE BY VOICE AND THOSE THAT WON'T WILL STILL HAVE CHEAP WAYS TO SWAP MESSAGES BY PAGER OR COMPUTER WHO NEEDS WIRELESS CONNECTIVITY ANYWAY HE ASKS FOR A WELL ORGANIZED BUSINESS OR PROFESSIONAL PERSON THE NEED FOR INSTANT CONNECTIVITY ISN'T SO GREAT THE PERSON WHO REALLY NEEDS IT IS INCOMPETENT BUT MR. SHOSTECK AND MANY OTHER EXPERTS ALSO UNDERESTIMATED THE DEMAND FOR CELLULAR PHONES AND PAGERS WHICH WAS DRIVEN BY ADVANCES IN CHIP AND SOFTWARE DESIGNS THAT REDUCED PRICES AND INCREASED PERFORMANCE THE SAME TECHNOLOGICAL FORCES PROBABLY WILL HASTEN THE DAY OF WIRELESS NETWORKS POWERFUL P. D. A.S AND WIRELESS SERVICES MARC PORAT GENERAL MAGIC'S CHIEF EXECUTIVE ALSO PREDICTS SUBSIDIES FROM NETWORK OPERATORS AND WIRELESS PROVIDERS OF GOODS AND SERVICES WILL SLASH P. D. A. PRICES STARTING THIS YEAR B. I. S. STRATEGIC DECISIONS A NORWELL MASSACHUSETTS MARKET RESEARCH GROUP KNOWN FOR CONSERVATIVE DEMAND FORECASTS PREDICTS ANNUAL P. D. A. SALES WILL REACH ABOUT ONE MILLION UNITS IN NINETEEN NINETY SEVEN ALONG WITH ANOTHER MILLION UNITS FOR OTHER WIRELESS DEVICES SUCH AS SUBNOTEBOOK COMPUTERS THE FIRM ALSO PREDICTS A TOTAL INSTALLED BASE OF ABOUT SEVEN POINT FIVE MILLION WIRELESS DEVICES BY THE END OF NINETEEN NINETY EIGHT MAGIC CAP AND TELESCRIPT HAVE THE POTENTIAL TO BE THE FOUNDATION FOR THE SPREAD OF P. D. A.S AND INTELLIGENT WIRELESS NETWORKS SAYS RICHARD SIBER SUPERVISOR OF THE B. I. S. STUDIES THOUGH HE SAYS THE TECHNOLOGY IS TOO YOUNG FOR CONFIDENT PREDICTIONS KNOWING THEIR PARTNERS IT CERTAINLY COULD TURN OUT THAT WAY GENERAL MAGIC'S MR. PORAT CAUTIONS THAT BUILDING UP EXTENSIVE INTELLIGENT NETWORKS WILL TAKE YEARS BUT HE EXPECTS P. D. A. DEVICES TO TAKE OFF FASTER HE CALLS NINETEEN NINETY THREE QUOTE THE YEAR OF P. D. A. DEMOS QUOTE AND NINETEEN NINETY FOUR QUOTE THE YEAR OF THE FIRST SERIOUS PRODUCTS IN NINETEEN NINETY FIVE REAL THINGS HAPPEN MR. HILL IS THE CHIEF OF THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU WHERE MR. CARLTON IS A STAFF REPORTER RACK UP ONE TOO MANY PARKING TICKETS IN THE BIG APPLE AND THE LONG ARM OF THE LAW AIDED BY HAND HELD WIRELESS TECHNOLOGY MAY REACH OUT AND SNATCH YOUR CAR IN LESS THAN THREE MINUTES FLAT THAT'S ABOUT HOW LONG IT TAKES FOR THE SCOFFLAW POSSE OF THE NEW YORK CITY SHERIFF'S DEPARTMENT TO FIND OUT THAT A CAR OWNER HAS EXCEEDED THE TWO HUNDRED THIRTY ONE DOLLAR MAXIMUM IN UNPAID FINES SUMMON A TOW TRUCK AND TOW THE CAR AWAY QUOTE IF YOU WENT IN TO A STORE TO GET BREAD MILK AND EGGS AND THERE WERE THREE PEOPLE IN FRONT OF YOU IN LINE BY THE TIME YOU GOT BACK TO YOUR CAR IT WOULD BE GONE QUOTE CROWS SHERIFF PHIL CRIMALDI HIS SECRET WEAPON A WIRELESS DATA NETWORK CALLED ARDIS HIS DEPUTIES USED ARDIS TO CHECK OUT ONE POINT NINE MILLION LICENSE PLATES ON CARS PARKED AND DOUBLE PARKED ON NEW YORK CITY STREETS LAST YEAR THAT YIELDED MORE THAN EIGHTY MILLION DOLLARS IN SCOFFLAW PAYMENTS NOT TO MENTION THE TOWING OF SOME ONE HUNDRED TWELVE THOUSAND CARS BEFORE THE ARDIS NETWORK WAS INSTALLED IN NINETEEN NINETY THE DEPARTMENT HAD NEVER COLLECTED MUCH MORE THAN TWO MILLION DOLLARS IN FINES FROM ARTFUL TICKET DODGERS CUSTOMERS ARE JUST BEGINNING TO DISCOVER THE ADVANTAGES OF WIRELESS DATA NETWORKS THE RELATIVELY SMALL BUSINESS LAST YEAR IT GENERATED ABOUT TWO HUNDRED SIXTY MILLION DOLLARS IN REVENUE SERVING THREE HUNDRED EIGHTY THOUSAND PEOPLE COULD GROW INTO A TWO BILLION DOLLAR MARKET WITH THREE POINT FOUR MILLION CUSTOMERS BY NINETEEN NINETY EIGHT IT WILL BE THE NEXT MAJOR TREND IN THE COMMUNICATIONS MARKET SAYS ROBERT J. RICH AN ANALYST AT DATAQUEST INCORPORATED A SAN JOSE CALIFORNIA MARKET RESEARCH CONCERN SIGNIFICANT TECHNOLOGICAL AND COMPETITIVE HURDLES HOWEVER WILL HAVE TO BE CLEARED BEFORE WIRELESS DATA NETWORKS CAN FULFILL THAT BULLISH FORECAST TODAY SOME EIGHTY FIVE PERCENT OF CUSTOMERS USE THE MOST COSTLY AND LEAST EFFICIENT NETWORK FOR SENDING DATA INTO THE ETHER THE REGULAR CELLULAR PHONE SYSTEM IT IS SLOW AND THE COST PER MINUTE IS HIGH THE DATA ARE OFTEN SCRAMBLED AND LOST IN THE HISS AND CRACKLE OF TRANSMISSION FOR CONSUMERS THOUGH THE REGULAR CELLULAR PHONE SYSTEM IS STILL A LOT EASIER TO USE THAN THE ALTERNATIVES YOU DON'T NEED SPECIAL EQUIPMENT OR SOFTWARE AND YOU CAN REACH A FAR GREATER NUMBER OF PEOPLE SO THE QUESTION REMAINS WHO WILL CONTROL THE FUTURE RIGHT NOW TWO MAJOR PLAYERS ARDIS AND RAM MOBILE DATA ARE SCRAPPING FOR CUSTOMERS BUT ADD TO THE BATTLE A THIRD RIVAL THE REGULAR CELLULAR PROVIDERS THEMSELVES WHICH ARE PUTTING TOGETHER AN ALL DIGITAL DATA APPROACH THAT MAY ELIMINATE TRANSMISSION GLITCHES AND CUT COSTS BY SPEEDING UP TRANSMISSION THE NEW METHOD KNOWN AS CDPD FOR CELLULAR DIGITAL PACKET DATA COULD TURN ARDIS AND RAM INTO ALSO RANS IF IT CAN TAKE HOLD QUICKLY ENOUGH FIRST THOUGH IT MUST OVERCOME THE DAUNTING OBSTACLE OF GETTING TWO HUNDRED FIFTY HARDWARE AND SOFTWARE COMPANIES TO SUPPORT IT IN A UNIFORM WAY ARDIS WITH FORTY THOUSAND CUSTOMERS AT ABOUT FORTY COMPANIES HAS A PAIR OF DEEP POCKETS IT IS A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORPORATION NEW YORK AND MOTOROLA INCORPORATED SCHAUMBURG ILLINOIS BUT ITS NETWORKS ARE PRIMARILY SEPARATE PRIVATE SYSTEMS THAT SERVE THE INDIVIDUALS WITHIN A PARTICULAR COMPANY INSTALLING THEM REQUIRES EXPENSIVE CUSTOMIZED SOFTWARE SOME COMPANIES INCLUDING AMERICAN TELEPHONE AND TELEGRAPH COMPANY AND RADIOMAIL CORPORATION SAN MATEO CALIFORNIA OFFER SERVICES THAT USE ARDIS AND RAM TO CARRY WIRELESS MESSAGES AND AIM TO SIMPLIFY THE WHOLE PROCESS THAT DRAWBACK OWES TO ARDIS'S ORIGINS IT WAS BUILT BY MOTOROLA IN THE EARLY NINETEEN EIGHTIES TO LET I. B. M.'S SERVICE TECHNICIANS KEEP IN TOUCH WITH HOME OFFICES WHILE TENDING TO CUSTOMERS' MAINFRAME COMPUTERS IT BECAME A JOINT VENTURE IN NINETEEN NINETY TO WOO OTHER COMPANIES WITH LARGE FIELD STAFFS TECHNICALLY ARDIS BASED IN LINCOLNSHIRE ILLINOIS OFFERS SERVICES IN FOUR HUNDRED METROPOLITAN AREAS ENCOMPASSING MORE THAN TEN THOUSAND CITIES REACHING NINETY PERCENT OF THE NATION'S BUSINESS MARKETS BUT ONLY ABOUT FORTY PERCENT OF THE GEOGRAPHIC U. S. WHEN USERS ARE IN THE RURAL PATCHES THAT ARDIS CAN'T REACH THEY MUST USE A REGULAR PHONE TO DIAL INTO THE SYSTEM THIS DIAL UP PATCH THEORETICALLY LETS ARDIS COVER EVEN REMOTE POINTS INCLUDING DEATH VALLEY PROVIDING OF COURSE YOU CAN FIND A PAY PHONE LIKE ALL WIRELESS NETWORKS ARDIS RELIES ON GOOD OLD FASHIONED WIRELINES FOR MUCH OF ITS REACH ITS ONE THOUSAND THREE HUNDRED BASE STATIONS BASICALLY ANTENNAS ATOP BUILDINGS HANDLE TWO WAY RADIO FREQUENCY SIGNALS AND LINK THEM WITH A NATIONWIDE WIRED NETWORK RUN BY A. T. AND T. FOR THE NEW YORK CITY SHERIFF THE ARDIS SETUP LETS DEPUTIES USE HAND HELD GADGETS ABOUT THE SIZE OF A V. C. R. CASSETTE TO CHECK LICENSE PLATES ALMOST INSTANTLY IN THE OLD DAYS BEFORE NINETEEN NINETY THE DEPUTIES HAD TO PORE OVER REAMS OF COMPUTERIZED PRINTOUTS LISTING CARS WITH UNPAID PARKING TICKETS THEY WERE CALLED HOT SHEETS BUT THE LISTINGS WERE AT LEAST THIRTY DAYS OLD BEFORE TOWING A CAR DEPUTIES HAD TO FIND A PAY PHONE NO EASY TASK IN NEW YORK AND CALL HEADQUARTERS TO MAKE SURE THE TICKETS WERE STILL OUTSTANDING ABOUT A THIRD OF THE TIME OFFENDING CARS WERE GONE BY THE TIME DEPUTIES GOT BACK TO THEIR CRUISERS SHERIFF CRIMALDI SAYS NOW WHEN A DEPUTY PUNCHES IN A TAG NUMBER THE MESSAGE IS BROKEN DOWN INTO AN ELECTRONIC PACKET TO AVOID FADING AND DISTORTION IT IS BEAMED TO THE NEAREST ARDIS RADIO ANTENNA WHICH TRANSMITS IT OVER A HIGH SPEED TELEPHONE LINE NEXT STOP THE ARDIS MESSAGE SWITCH A COMPUTER IN CHICAGO WHICH HANDS IT OFF TO A TELEPHONE LINE ROUTED TO A BIG MAINFRAME DATABASE IN DALLAS THERE THE MESSAGE IS REASSEMBLED THE LICENSE PLATE IS CHECKED AGAINST THE DATABASE OF UNPAID PARKING TICKETS AND A REPLY IS ZAPPED BACK ALONG THE SAME ROUTE TO THE DEPUTY ON THE STREET THE WHOLE PROCESS TAKES A FEW SECONDS THE BAD NEWS ARDIS IS EXPENSIVE MONTHLY COSTS PER USER CAN RUN INTO THE ONE HUNDRED DOLLAR RANGE DEPENDING ON THE NUMBER OF USERS AND THE APPLICATION EACH WIRELESS DEVICE COSTS SEVERAL THOUSAND DOLLARS AND ARDIS'S CUSTOMERS SHOULDER THE COST OF DEVELOPING CUSTOMIZED SOFTWARE DITTO FOR ENCRYPTION OR DATA SECURITY RAM MOBILE IS AIMING AT A BROADER AND MORE GENERIC MARKET THE NEW YORK BASED JOINT VENTURE OF RAM BROADCASTING CORPORATION WOODBRIDGE N. J. AND BELLSOUTH CORPORATION ATLANTA CHARGES USERS LESS THAN ARDIS TO GET ON BOARD RATHER THAN SERVING PRIMARILY PARTICULAR COMPANIES RAM SYSTEMS ARE SET UP TO LET VIRTUALLY ANY USER SEND AND RECEIVE ELECTRONIC MAIL AND OTHER DATA TO ANOTHER USER THE CATCH ITS CUSTOMER BASE IS PUNY AT ONLY THREE THOUSAND USERS BY THE END OF NINETEEN NINETY THREE ACCORDING TO DATAQUEST RAM'S UNDERLYING TECHNOLOGY WAS DEVELOPED ABOUT TWENTY YEARS AGO BUT IT DIDN'T SHOW MUCH PROMISE UNTIL THE COMPANY GOT AN INJECTION OF THREE HUNDRED MILLION DOLLARS FROM BELLSOUTH IN NINETEEN NINETY ONE DESIGNED TO LET PEOPLE WITH PORTABLE COMPUTERS ZAP E. MAIL BACK AND FORTH THE RAM NETWORK USES RADIO FREQUENCY WAVES AND COVERS SIX THOUSAND THREE HUNDRED CITIES IN MORE THAN TWO HUNDRED METROPOLITAN AREAS OR ABOUT NINETY PERCENT OF THE URBAN BUSINESS POPULATION THAT TRANSLATES HOWEVER INTO ONLY ABOUT THIRTY PERCENT OF THE GEOGRAPHIC U. S. RAM CURRENTLY DOESN'T COVER RURAL AREAS OR PERHAPS THANKFULLY VACATION SPOTS SAVE WAIKIKI BEACH IN HAWAII QUOTE BUT WE'RE WORKING ON IT QUOTE SAYS MARTIN LEVETIN A RAM EXECUTIVE VICE PRESIDENT RAM BASE STATIONS ARE CLUSTERED AND LINKED INTO SWITCHING CABINETS CALLED MOXES AND EACH MOX IS AN ELECTRONIC TRAFFIC COP TIED TO DEDICATED PHONE LINES AS SOON AS THE MOX RECEIVES A MESSAGE IT FIGURES OUT WHERE THE MESSAGE NEEDS TO GO THEN ZAPS IT ALONG THE WIRED NETWORK TO A WAITING MOX AT THE OTHER END THAT MOX FEEDS THE MESSAGE WHICH HAS BEEN BROKEN DOWN INTO ELECTRONIC PACKETS TO THE APPROPRIATE BASE STATION SECONDS LATER THE MESSAGE SHOWS UP ON THE RECIPIENT'S COMPUTER WHICH AUTOMATICALLY REASSEMBLES IT INTO A READABLE FORMAT TO USE RAM YOU MUST GENERALLY BE ON A COMPANY E. MAIL SYSTEM THAT IS TIED TO THE NETWORK OR USE RAM COMPATIBLE SOFTWARE MICROSOFT CORPORATION LOTUS DEVELOPMENT CORPORATION WORDPERFECT CORPORATION A. T. AND T. C. E. SOFTWARE INCORPORATED AND DAVINCI SYSTEMS CORPORATION SELL PROGRAMS THAT CAN LINK UP TO THE RAM SYSTEM YOUR PORTABLE COMPUTER MUST HAVE A WIRELESS DATA MODEM FROM INTEL CORPORATION ERICSSON G. E. MOBILE COMMUNICATIONS INCORPORATED RALEIGH N. C. OR MOTOROLA LIKE ARDIS'S RAM'S PRICING IS VOLUME BASED THE MORE YOU USE THE CHEAPER IT GETS A CUSTOMER CAN RECEIVE ONE HUNDRED MESSAGES A MONTH FOR A TOTAL OF ONE HUNDRED THOUSAND CHARACTERS FOR TWENTY FIVE DOLLARS FOUR HUNDRED MESSAGES FOR SEVENTY FIVE DOLLARS A MONTH AND UNLIMITED MESSAGING FOR ONE HUNDRED THIRTY FIVE DOLLARS A MONTH MOST OF RAM'S USERS HOWEVER FALL INTO THE SEVENTY FIVE DOLLAR A MONTH CATEGORY RAM SAYS BURGER KING A UNIT OF GRAND METROPOLITAN P. L. C. IS TESTING ONE POINT OF SALE APPLICATION THAT ALLOWS PEOPLE TO PAY FOR THEIR PURCHASES WITH CREDIT CARDS A SPECIAL DEVICE VALIDATES CREDIT CARDS IN LESS THAN SEVEN SECONDS ABOUT THE TIME IT TAKES TO SAY ONE WHOPPER HOLD THE PICKLES ONE CHOCOLATE SHAKE AND AN EXTRA LARGE ORDER OF FRIES PLEASE THE CELLULAR PHONE SYSTEM LED BY MCCAW CELLULAR COMMUNICATIONS INCORPORATED KIRKLAND WASHINGTON COULD BECOME A WIRELESS DATA POWERHOUSE BY ALMOST ANY MEASURE FOR STARTERS IT REACHES NINETY SIX PERCENT OF THE GEOGRAPHIC U. S. WITH A BUILT IN CUSTOMER BASE OF MORE THAN THREE MILLION PEOPLE WHILE DATA TRANSMISSION OVER THE CURRENT SYSTEM CAN BE A FRACTURED AND FRUSTRATING AFFAIR MCCAW IS PUSHING CDPD TO CHANGE THAT THE DIGITAL TECHNOLOGY MOREOVER IS EXPECTED TO BE CHEAP COMPARED WITH OTHER WIRELESS OPTIONS WITH BASIC RATES WELL WITHIN REACH OF EVEN CASUAL USERS UNLIMITED MESSAGING WILL PROBABLY WIND UP COSTING AROUND FORTY FIVE DOLLARS A MONTH PROPONENTS SAY EXPERTS SAY THAT CDPD'S POTENTIAL IS ENORMOUS AND THAT IT COULD BECOME THE WAL MART OF WIRELESS DATA NETWORKS A CATEGORY KILLER THAT OFFERS A LITTLE SOMETHING FOR EVERYONE EXCEPT COMPETITORS CDPD ENDS THE ARGUMENT SAYS PAUL CALLAHAN A SENIOR ANALYST AT FORRESTER RESEARCH INCORPORATED A CONSULTING FIRM IN CAMBRIDGE MASSACHUSETTS WHO BELIEVES IT HAS THE BEST CHANCE TO BECOME A DE FACTO STANDARD IN THE INDUSTRY OTHERS AGREE OUR FEELING IS THAT PEOPLE TEND TO USE WHAT THEY'RE MOST FAMILIAR WITH WHAT THEY ALREADY HAVE AND THAT'S CELLULAR SAYS DONALD BLUMBERG PRESIDENT OF D. F. BLUMBERG ASSOCIATES A FORT WASHINGTON PENNSYLVANIA CONSULTING FIRM THAT TRACKS THE MARKET SOUNDS GREAT BUT CDPD HAS BARELY MOVED BEYOND A FEW TEST BEDS AND IT MIGHT NEVER GROW TO THE GRAND SCALE IMAGINED BY ITS PRINCIPAL BACKER CRAIG O. MCCAW MCCAW CELLULAR'S CHAIRMAN AND CHIEF EXECUTIVE HE MUST GET MORE THAN TWO HUNDRED FIFTY PLAYERS FROM CELLULAR SERVICE PROVIDERS TO HARDWARE MAKERS AND SOFTWARE FIRMS TO COOPERATE IN BUILDING EQUIPMENT AND SOLUTIONS THAT WILL WORK TOGETHER THAT'S A CONSIDERABLE EFFORT FOR AN INDUSTRY FILLED WITH PLAYERS NOT KNOWN FOR THEIR TEAM SPIRIT IN ADDITION THE CELLULAR STRATEGY TO SIMPLY OVERLAY DIGITAL DATA ATOP PHONE CALL TRAFFIC IS TREMENDOUSLY COMPLICATED AND SOME OBSERVERS AREN'T SURE IT WILL WORK AS WELL AS PROPONENTS PROMISE THE MARKET FOR WIRELESS DATA NETWORKS HAS LANGUISHED IN PART BECAUSE OF A DECIDED LACK OF USER ENTHUSIASM THAT COULD CHANGE UNDER CDPD WHICH OFFERS USERS THE BEST OF BOTH WORLDS VOICE AND DATA CDPD DEVELOPED BY I. B. M. WITH MCCAW AND A CONSORTIUM OF MAJOR CELLULAR CARRIERS WILL ULTIMATELY USE QUOTE DEAD QUOTE OR UNUSED AIR TIME IN VOICE TRANSMISSIONS PAUSES BETWEEN SENTENCES WORDS OR EVEN SYLLABLES TO SQUEEZE IN SHORT BURSTS OF DATA THE EXISTING CELLULAR NETWORK WORKS AT ONLY ABOUT SIXTY PERCENT CAPACITY CDPD BACKERS SAY LEAVING PLENTY OF ROOM FOR DATA TRANSMISSIONS IF VOICE CHANNELS ARE JAMMED AS THEY OFTEN ARE IN BUSY MARKETS LIKE NEW YORK CDPD WILL LET DATA STREAMS HOP FROM ONE CHANNEL TO ANOTHER IN SEARCH OF AN OPENING AND THEN FIRE OFF WHEN THEY FIND ONE FIVE MAJOR CITIES WERE SCHEDULED TO BE UP AND RUNNING WITH CDPD TECHNOLOGY BY LAST MONTH MIAMI DALLAS SEATTLE SAN FRANCISCO AND NEW YORK MCCAW HAS ANNOUNCED PLANS TO INSTALL CDPD ACROSS ITS ENTIRE NETWORK WHICH CAN REACH SIXTY MILLION POTENTIAL CUSTOMERS BY THE END OF THE YEAR IN ADDITION BELL ATLANTIC CORPORATION WHICH IS IN THE PROCESS OF MERGING WITH CABLE GIANT TELE COMMUNICATIONS INCORPORATED AND A FEW OTHER BABY BELLS HAVE SAID THEY HOPE TO HAVE THEIR CDPD NETWORKS FULLY DEPLOYED WITHIN TWO YEARS EVEN BELLSOUTH WHICH WASN'T INCLUDED IN THE DEVELOPMENT PHASE BECAUSE OF ITS RAM CONNECTION IS CONSIDERING OFFERING CDPD ACROSS ITS WIRELESS NETWORKS SOME SAY THAT'S A STRONG TESTAMENT TO THE ALLURE OF THE NEW TECHNOLOGY INDEED AT A MAJOR TRADE SHOW LAST FALL MCCAW CLAIMS IT GOT FOUR THOUSAND LEADS FROM SOFTWARE DEVELOPERS FOR CDPD APPLICATIONS THAT ISN'T BAD CONSIDERING CDPD WAS OPERATING IN JUST ONE SMALL MARKET IN THE MIDDLE OF THE DESERT LAS VEGAS NOT EXACTLY A TOUGH PROVING GROUND FOR TRICKY IN CITY TRANSMISSIONS MS. CAULEY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU IT'S BEEN NATIONAL NEWS THAT U. S. SENATOR KAY BAILEY HUTCHISON IS ON TRIAL THIS WEEK ON CHARGES SHE EXPLOITED HER FORMER OFFICE AS TEXAS STATE TREASURER FOR POLITICAL AND PERSONAL PURPOSES SENATOR HUTCHISON IS A REPUBLICAN HAVING MORE DIFFICULTY MAKING IT ACROSS THE TEXAS BORDER THOUGH IS THE NEWS THAT THE OFFICE OF GOVERNOR ANN RICHARDS IS SAID TO HAVE IMPROPERLY PRESSURED STATE ARCHIVISTS TO JUSTIFY THE SHREDDING OF HER OWN SENSITIVE TELEPHONE RECORDS SHE'S A DEMOCRAT IF SENATOR HUTCHISON IS DRIVEN FROM OFFICE GOVERNOR RICHARDS APPOINTS HER REPLACEMENT ADDING TO THE DEMOCRATS' STRENGTH IN THE SENATE DEMOCRATS WERE SHOCKED LAST JUNE WHEN MS. HUTCHISON DEMOLISHED DEMOCRAT BOB KREUGER BY TWO TO ONE IN A SPECIAL U. S. SENATE ELECTION IT WAS ABOUT THEN THAT STATE DEMOCRATS STARTED GROUSING THAT MS. HUTCHISON HAD MISUSED HER POSITION AS TREASURER TO ADVANCE HER POLITICAL ACTIVITIES THEN TRAVIS COUNTY DISTRICT ATTORNEY RONNIE EARLE STAGED A RAID OF THE TREASURER'S OFFICE AND SEIZED A PILE OF RECORDS MR. EARLE A DEMOCRAT IS A LONGTIME ALLY OF GOVERNOR RICHARDS MR. EARLE THEN GOT A GRAND JURY TO INDICT SENATOR HUTCHISON ON SEVERAL FELONY COUNTS OF MISUSING STATE EMPLOYEES AND CONCEALING EVIDENCE THAT POLITICAL CALLS HAD BEEN MADE ON A STATE PHONE BUT A STATE JUDGE THREW OUT MOST OF THE INDICTMENT AS TOO VAGUE MR. EARLE WAS FORCED TO SEEK A REVISED INDICTMENT THAT CHARGES HER WITH CONCEALING TELEPHONE RECORDS AND ASKING STATE EMPLOYEES TO SHOP FOR HER AND WRITE PERSONAL THANK YOU NOTES REPUBLICANS CRIED FOUL CHARGING THAT SENATOR HUTCHISON WAS BEING PROSECUTED FOR PRACTICES COMMON AMONG TEXAS OFFICIALS ON AUGUST FOURTH G. O. P. CHAIRMAN FRED MEYER NOTED THAT GOVERNOR RICHARDS HAD THIRTEEN PRIVATE PHONE LINES IN HER OFFICIAL OFFICES INCLUDING TWO TIED DIRECTLY TO HER CAMPAIGN HEADQUARTERS THAT MONTH IT WAS REPORTED GOVERNOR RICHARDS ORDERED EIGHT OF THE LINES REMOVED NOW IT TURNS OUT THAT AT THE SAME TIME GOVERNOR RICHARDS YANKED THE LINES OUT HER LAWYERS ORDERED THE IMMEDIATE DESTRUCTION OF TWO AND ONE HALF YEARS OF LONG DISTANCE PHONE RECORDS AND ASKED THAT FUTURE RECORDS BE DESTROYED EVERY THIRTY DAYS THIS CAME TO LIGHT ONLY THIS PAST JANUARY TWENTY SEVENTH AFTER WHICH THE GOVERNOR'S AIDES OFFERED FOUR DIFFERENT VERSIONS OF WHAT HAPPENED THEY FINALLY ACKNOWLEDGED THAT STATE LAW INDEED REQUIRES SUCH RECORDS BE KEPT FOR THREE YEARS NOT THIRTY DAYS THE G. O. P.'S MR. MEYER ALSO NOTES THAT THE STATE DEPARTMENT OF PUBLIC SAFETY IS ALSO RESISTING EFFORTS TO SUBPOENA THE GOVERNOR'S DAILY SCHEDULE ON THE GROUNDS THAT IT WOULD QUOTE COMPROMISE QUOTE HER SAFETY THE STATE'S POLICIES ON RECORD KEEPING ARE SET BY THE LIBRARY AND ARCHIVES COMMISSION WHICH IS CHAIRED BY CAROLYN ARMSTRONG SHE AND WILLIAM GOOCH THE COMMISSION'S DIRECTOR HAVE MADE SIGNED STATEMENTS THAT INDICATE THE GOVERNOR'S OFFICE WAS WORRIED ABOUT THE APPEARANCES OF SHREDDING THE SAME KIND OF PHONE RECORDS MRS. HUTCHISON WAS INDICTED FOR ALLEGEDLY CONCEALING THE COMMISSION'S MR. GOOCH SAYS GOVERNOR RICHARDS'S AIDES TOLD HIM ON JANUARY TWENTY SEVENTH THE DAY THE STORY ABOUT SHREDDING THE PHONE RECORDS BROKE THAT THE GOVERNOR WANTED HIM TO ISSUE A LETTER SAYING HER OFFICE HAD DONE NOTHING WRONG THE GOVERNOR'S AIDES WERE UNHAPPY WITH THE LETTER HE WROTE FOR THEM WHICH SAID THE SHREDDING WAS AN HONEST MISINTERPRETATION OF STATE RULES THEY DEMANDED AND GOT FROM HIM A MORE SWEEPING EXONERATION OUR AGENCY WAS PLACED IN THE UNTENABLE POSITION OF MAKING JUDGMENTS ABOUT WHAT IS LEGAL AND ILLEGAL SAYS MS. ARMSTRONG I BELIEVE THE AGENCY WAS MISUSED IN AN EFFORT TO PROVIDE COVER FOR THE DESTRUCTION OF TELEPHONE RECORDS BY THE GOVERNOR'S OFFICE NOW WE SHOULD ADD IT'S NOT AT ALL CLEAR THAT EITHER OF THESE TWO HAVE ACTUALLY DONE ANYTHING WRONG BUT IT IS CLEAR THAT THE DEMOCRATS LOBBED THE FIRST INSINUATION WE'D HAVE THOUGHT THAT ONE LESSON AFTER DEMOCRATS TRIED TO BUILD ED ROLLINS'S NEW JERSEY WALKING AROUND MONEY TALE INTO A BONFIRE UNDER CHRISTIE WHITMAN IS THAT THE WIND CAN SHIFT G. O. P. SENATOR PHIL GRAMM PREDICTS THAT IF MRS. HUTCHISON IS ACQUITTED THEY'LL BE HUNTING DOWN DEMOCRATS WITH DOGS IN TEXAS THE TURMOIL LATELY IN THE DOW JONES INDUSTRIAL AVERAGE REMINDS INVESTORS THAT WALL STREET IS A TWO WAY STREET WHILE STOCKS HAVE MANAGED TO RECOUP A PORTION OF THE ONE HUNDRED FOUR POINTS THEY SURRENDERED LATE LAST WEEK MANY PROFESSIONALS ARE STILL NERVOUS LAST WEEK'S SUDDEN DIP QUOTE SHOWED HOW TENDER THE MARKET IS QUOTE SAYS MORGAN STANLEY STRATEGIST BYRON WIEN IF THE MARKET WERE TO TURN SOUTH FOR A WHILE WHICH STOCKS WOULD HOLD UP BEST THERE ARE NO GUARANTEES BUT MONEY MANAGERS SAY CHEAP STOCKS THAT PAY A DIVIDEND AND DON'T HAVE TOO MUCH DEBT OFTEN WEATHER DOWNTURNS PRETTY WELL THE ACCOMPANYING TABLE FROM MARKETBASE A MARKET INFORMATION FIRM IN NEEDHAM MASSACHUSETTS IDENTIFIES SOME POSSIBLE SAFE HAVENS IT ALSO HIGHLIGHTS SOME STOCKS THAT LOOK VULNERABLE AS A SIGN OF THE TIMES MARKETBASE FOUND FEWER THAN TWO DOZEN STOCKS OUT OF MORE THAN TWO THOUSAND NON FINANCIAL COMPANIES SCREENED THAT CLEARED CERTAIN STATISTICAL HURDLES DEFINING POSSIBLE SAFE HAVENS MEANWHILE KATHERINE HENSEL A LEHMAN BROTHERS STRATEGIST HAS FINISHED A MAJOR STUDY OF WHICH STOCKS HOLD UP BEST IN WEAK MARKETS CYCLICAL STOCKS THE MARKET'S DARLINGS LATELY ARE EXACTLY THE ONES THAT REALLY GET KILLED IN DOWNTURNS SHE SAYS MS. HENSEL SAYS INVESTORS WHO EXPECT A DROP SHOULD BEWARE OF HOTEL SEMICONDUCTOR HOMEBUILDING AND AIR FREIGHT STOCKS BUT THEY SHOULD CONSIDER BEEFING UP HOLDINGS OF OIL FOOD AND UTILITY ISSUES TO REACH THESE CONCLUSIONS THE LEHMAN STUDY REVIEWED NINE MARKET CORRECTIONS SINCE NINETEEN SIXTY TWO OR EVERY DOWNTURN OF FIVE PERCENT OR MORE THAT DIDN'T PRECEDE A RECESSION FOR HER PART MS. HENSEL EXPECTS A CLASSIC CORRECTION OF TEN PERCENT TO FIFTEEN PERCENT IN THE NEXT FEW MONTHS NOW THAT THE FEDERAL RESERVE HAS BEGUN TO RAISE INTEREST RATES THE STUDY FOUND THREE MAIN CHARACTERISTICS THAT PREDICT HOW FRAGILE A STOCK WILL BE IN A DOWNTURN THE FIRST IS VOLATILITY MEASURED BY WHAT MARKET PROFESSIONALS CALL BETA A STOCK WITH A BETA OF ONE POINT OH OH IS PRECISELY AS VOLATILE AS THE OVERALL MARKET A STOCK WITH A BETA OF ONE POINT FIVE TENDS TO MOVE HALF AGAIN AS FAR AS THE MARKET IF THE MARKET RISES TEN PERCENT SUCH A STOCK CAN BE EXPECTED TO CLIMB FIFTEEN PERCENT AND VICE VERSA WHEN PRICES ARE FALLING INVESTORS DO BETTER WITH LOW BETA STOCKS SECOND THE STUDY FOUND THAT HOT STOCKS THOSE THAT HAD THE BEST GAINS IN THE PRIOR YEAR TYPICALLY FELL MORE THAN MOST IN DOWN MARKETS THIRD STOCKS WITH ABOVE AVERAGE DIVIDEND YIELDS USUALLY WITHSTOOD MARKET SLUMPS BETTER WHAT STOCKS MEET THOSE CRITERIA TODAY IN THE OIL GROUP MS. HENSEL POINTS TO IMPERIAL OIL PENNZOIL AND ATLANTIC RICHFIELD QUOTE THE NEWS IS NOT GOING TO GET A LOT WORSE QUOTE FOR OILS NOW THAT THE PRICE OF OIL HAS SUNK TO AROUND FOURTEEN DOLLARS A BARREL SHE SAYS AMONG UTILITIES D. P. L. NORTHEAST UTILITIES CENTRAL AND SOUTH WEST AND UNION ELECTRIC SEEM SECURE MS. HENSEL SAYS IN THE FOOD GROUP LANCE UNIVERSAL FOODS AND QUAKER OATS HAVE GOOD DEFENSIVE PROFILES DRUG AND TOBACCO STOCKS WERE DEFENSIVE IN THE PAST BUT LATELY HAVE SHOWN HIGHER BETAS AND PROBABLY WOULD BE FLIMSY SHIELDS AGAINST A DECLINE SHE SAYS BRETT BRUBAKER PRESIDENT OF ABRAHAM AND SONS IN CHICAGO SAYS THE VULNERABLE LIST GETS LONGER EVERY DAY MR. BRUBAKER GOES BOTH LONG AND SHORT STOCKS THAT IS HE BOTH OWNS THEM AND BETS AGAINST THEM FOR THE FIRST TIME SINCE NINETEEN EIGHTY SEVEN MR. BRUBAKER HAS MORE BEARISH SHORT POSITIONS THAN BULLISH LONGS I'M SO SHORT I MAKE DANNY DEVITO LOOK LIKE WILT THE STILT HE SAYS ONE STOCK MR. BRUBAKER THINKS IS RIPE FOR A FALL IS CHRYSLER A COUPLE OF YEARS AGO HE WAS ONE OF A PRESCIENT FEW INVESTMENT PROS TO BUY CHRYSLER AT TWELVE DOLLARS A SHARE YESTERDAY THE STOCK CLOSED AT FIFTY NINE AND THREE QUARTERS BUT THE ENTHUSIASM IS OVERDONE MR. BRUBAKER SAYS IT IS AS POPULAR TODAY AS IT WAS NEGLECTED IN NINETEEN NINETY BESIDES FUNDAMENTALS MR. BRUBAKER USES STOCK CHARTS CHRYSLER'S CHART SHOWS TODAY'S PRICE TO BE OMINOUSLY SIMILAR TO ITS NINETEEN SEVENTY THREE AND NINETEEN EIGHTY SEVEN PEAKS THAT HE SAYS IS A DANGER SIGN THE PREVIOUS PEAKS WERE UNSUSTAINABLE AND THIS ONE PROBABLY WILL BE TOO INDEED HE SAYS SIMILAR ANALYSIS FOR THE OVERALL MARKET SHOWS THE SAME FROTHINESS MR. BRUBAKER ALSO THINKS AIRGAS IS TOO HIGH IT CLOSED YESTERDAY AT TWENTY FOUR AND ONE QUARTER ABOUT ONE POINT FOUR TIMES PER SHARE SALES OR MORE THAN TWICE ITS NORMAL MULTIPLE MY NOSE IS BLEEDING FROM THE ALTITUDE HE EXCLAIMS HIS OTHER BEARISH BETS INCLUDE AIRBORNE FREIGHT R. G. BARRY CATERPILLAR CLARK EQUIPMENT ECHLIN HERCULES MORTON INTERNATIONAL AND PLYGEM INDUSTRIES ON THE FLIP SIDE MR. BRUBAKER LIKES STOCKS THAT QUOTE HAVE ALREADY BEEN SLICED AND DICED QUOTE AND IN HIS OPINION ARE UNLIKELY TO FALL MUCH MORE HE THINKS ASARCO CALGON CARBON KATZ SEMICONDUCTOR AND ROLLINS ENVIRONMENTAL FIT THE BILL FRED GORDON EDITOR OF PLAIN TALK INVESTOR A NORTHBROOK ILLINOIS NEWSLETTER SAYS THAT IF HE SENSES THE MARKET TURNING SOUR I'D BE THE MOST CAUTIOUS ON THE SECTORS THAT THE BULL HAS LOVED THE MOST THAT'S WHERE INVESTORS WILL GRAB THE PROFITS AND RUN HIS AVOID LIST INCLUDES SEMICONDUCTORS BROKERAGE HOUSES AUTOS AND AUTO PARTS RAILROADS TRUCKERS TELECOMMUNICATIONS STEELS FINANCIAL SERVICES AND RESTAURANTS FOR PROTECTION MR. GORDON SAYS HE'D NIBBLE AT GOLD AND OIL HE'D ALSO CONSIDER FOOD AND SUPERMARKET STOCKS BUT MOST IMPORTANTLY HE'D RAISE CASH JOAN E. LAPPIN PRESIDENT OF GRAMERCY CAPITAL IN NEW YORK SUGGESTS LOOKING FOR STOCKS WHOSE UNDERLYING BUSINESS IS IMPROVING SO MUCH THAT THEY COULD BUCK A DOWNTREND KNIGHT RIDDER THE NEWSPAPER CHAIN AND GENERAL MOTORS BOTH QUALIFY IN HER VIEW MS. LAPPIN DOESN'T EXPECT A STOCK MARKET SLIDE SOON BUT AS A PRECAUTION SHE SAYS WE'VE BEEN TRYING TO MOVE TO LARGER MORE LIQUID SECURITIES SO IF YOU FEEL YOU NEED THE EXIT THERE IS ONE SHE'S ALSO AVOIDING BANKS QUOTE IF THE FED THOUGHT IT WAS NECESSARY TO MAKE FURTHER RATE INCREASES QUOTE SHE SAYS QUOTE THE STOCKS THAT WOULD SUFFER THE MOST WOULD BE THE FINANCIAL STOCKS QUOTE A. GARY SHILLING WHO RUNS THEMATIC INVESTMENT PARTNERS IN SPRINGFIELD N. J. THINKS INVESTORS CAN STILL MAKE MONEY IN STOCKS OF TECHNOLOGY COMPANIES THAT ENHANCE PRODUCTIVITY SUCH AS MOTOROLA INTEL AND LOTUS DEVELOPMENT BUT HE BELIEVES A MARKET SLIDE IS COMING NOT A CRASH BUT A CHINESE WATER TORTURE MARKET OF UNREMITTING DIPS SO MANY INVESTORS ARE NEW IN THE MARKET HE SAYS THEY REGARD DECLINES AS A BUYING OPPORTUNITY I THINK THEY'RE GOING TO BE FRUSTRATED WHAT'S UP AT MCKESSON CORPORATION THE DRUG WHOLESALER'S STOCK SURGED FIVE AND ONE EIGHTH IN THE PAST TWO DAYS TO CLOSE YESTERDAY AT SIXTY FOUR AND ONE EIGHTH AND IT'S BEEN CLIMBING STEADILY SINCE THE BEGINNING OF THE YEAR TRADERS SPECULATE THAT THE SAN FRANCISCO COMPANY COULD BE UP FOR GRABS WHAT MAKES MCKESSON ATTRACTIVE BAIT IS P. C. S. ITS PRESCRIPTION DRUG MANAGEMENT BUSINESS THE LARGEST OF ITS KIND P. C. S. RUNS PRESCRIPTION DRUG BENEFIT PROGRAMS FOR ABOUT FORTY FIVE MILLION PEOPLE INCLUDING EMPLOYEES OF CHRYSLER GENERAL MOTORS AND THE FEDERAL GOVERNMENT LIKE ITS BIGGEST COMPETITOR MEDCO WHICH WAS RECENTLY GOBBLED UP BY MERCK P. C. S. ACTS AS GATEKEEPER FOR THE BENEFITS PLANS IT MANAGES DECIDING WHICH DRUGS ARE APPROVED FOR PARTICIPANTS' USE THIS MAKES P. C. S. AN APPEALING TARGET FOR DRUG COMPANIES ANXIOUS TO DEFEND FUTURE SALES ALL THE MORE SO SINCE MOST DRUGS ON THE MARKET HAVE DIRECT SUBSTITUTES WHOEVER OWNS P. C. S. CAN MAKE SURE HIS DRUGS ARE INCLUDED IN BENEFIT PLANS AND OTHERS ARE NOT SAYS HEMANT K. SHAH A PHARMACEUTICALS INDUSTRY ANALYST EVEN THOUGH P. C. S. IS STILL SMALL ANALYSTS ESTIMATE THAT ITS REVENUE WILL COME IN UNDER TWO HUNDRED MILLION DOLLARS FOR THE FISCAL YEAR ENDING IN MARCH IT HAS BEEN RAPIDLY GAINING NEW ACCOUNTS LAWRENCE MARSH OF WHEAT FIRST BUTCHER AND SINGER IN RICHMOND VIRGINIA SAYS P. C. S.'S MARGINS ARE SO HIGH THAT IT WILL GENERATE ABOUT TWENTY PERCENT OF MCKESSON'S OPERATING PROFITS WHICH HE ESTIMATES AT THREE HUNDRED FIFTY MILLION DOLLARS IN THE NEXT FISCAL YEAR TAKEOVER SPECULATORS APPLYING THE LOFTY MULTIPLE MERCK PAID FOR MEDCO SAY MCKESSON COULD COMMAND A BID OF MORE THAN EIGHTY DOLLARS BUT MR. SHAH AND OTHERS WARN THAT ON A FUNDAMENTAL BASIS MCKESSON ALREADY LOOKS OVER PRICED RUMORED BUYERS INCLUDE BRISTOL MYERS SQUIBB AND SCHERING PLOUGH BOTH OF WHICH WOULDN'T COMMENT A MCKESSON SPOKESMAN ALSO DECLINED COMMENT BUT STRESSED THAT THE COMPANY HAS A BATTERY OF ANTI TAKEOVER PROVISIONS IN PLACE GENERAL MOTORS CORPORATION POSTED A FOURTH QUARTER PROFIT OF ONE POINT ONE EIGHT BILLION DOLLARS OR ONE DOLLAR AND TWENTY EIGHT CENTS A SHARE REVERSING A YEAR EARLIER LOSS AND FINISHING THE YEAR WITH A PROFIT FOR THE FIRST TIME SINCE NINETEEN EIGHTY NINE THE FOURTH QUARTER PROFIT INCLUDED BETTER THAN EXPECTED RESULTS FOR NORTH AMERICAN AUTO OPERATIONS SIGNALED STRONG EARNINGS FOR NINETEEN NINETY FOUR AND WAS GENERALLY AT THE HIGH END OF WALL STREET EXPECTATIONS BUT SOME END OF THE YEAR TAX COMPLICATIONS MUDDIED THE PICTURE CONFUSING SOME INVESTORS AND ANALYSTS THAT TOGETHER WITH DISAPPOINTMENT THAT NEITHER G. M. NOR FORD MOTOR COMPANY PRODUCED A BIG EARNINGS SURPRISE THIS WEEK LED TO A SELL OFF OF AUTO STOCKS ON WALL STREET G. M. SHARES FELL ONE DOLLAR AND SEVENTY FIVE CENTS TO SIXTY TWO DOLLARS AND FIFTY CENTS IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING FORD WHICH REPORTED STRONG FOURTH QUARTER RESULTS TUESDAY FELL TWO DOLLARS AND FIFTY CENTS TO SIXTY SIX DOLLARS IN BIG BOARD TRADING AND SHARES OF CHRYSLER CORPORATION WHICH HAD INFLATED EXPECTATIONS FOR THE INDUSTRY BY REPORTING A REAL EARNINGS SURPRISE A MONTH AGO SKIDDED ONE POINT SIX TWO FIVE DOLLARS TO FIFTY NINE DOLLARS AND SEVENTY FIVE CENTS ALSO IN BIG BOARD TRADING G. M.'S RESULTS THOUGH UNDERSCORED THAT A SUBSTANTIAL TURNAROUND IS UNDER WAY AT WHAT HAD BECOME THE WORLD'S SICKEST AUTO MAKER QUOTE OPERATIONALLY THEY'RE DOING EVERYTHING THEY SAID THEY WOULD QUOTE OBSERVED JACK V. KIRNAN AUTO ANALYST AT SALOMON BROTHERS AT THE END OF THE DAY IT'S PRETTY IMPRESSIVE THE FOURTH QUARTER PROFIT INCLUDES A ONE HUNDRED EIGHTY NINE POINT FIVE MILLION DOLLAR LOSS ON THE SALE OF THE ALLISON GAS TURBINE DIVISION AND A TAX BENEFIT OF ABOUT THREE HUNDRED FIFTY MILLION DOLLARS RELATED TO A RISE IN FOREIGN TAX CREDITS FOR THE PERIOD THE INCREASE OCCURRED BECAUSE THE COMPANY UNDERESTIMATED THE CREDITS IN THE PREVIOUS THREE QUARTERS THIS ELEMENT TOGETHER WITH A FOUR HUNDRED FORTY FOUR POINT THREE MILLION DOLLAR BENEFIT RELATED TO THE CHANGE IN TAX RATES THAT G. M. SAID IT BOOKED IN THE THIRD QUARTER HAD SOME ANALYSTS QUESTIONING JUST HOW GOOD THE FOURTH QUARTER RESULTS REALLY WERE PARTICULARLY IN NORTH AMERICA IN THE YEAR EARLIER QUARTER G. M. HAD A LOSS OF SIX HUNDRED FIFTY ONE POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND TWENTY FIVE CENTS A SHARE THAT FIGURE INCLUDED A WRITE DOWN OF G. M.'S INVESTMENT IN NATIONAL CAR RENTAL SYSTEMS INCORPORATED OF SEVEN HUNDRED FORTY FOUR POINT ONE MILLION DOLLARS OR ONE DOLLAR AND ELEVEN CENTS A SHARE AND A GAIN ON THE SALE OF A STAKE IN DAEWOO MOTOR COMPANY OF ONE HUNDRED SIXTY FIVE POINT ONE MILLION DOLLARS OR TWENTY FIVE CENTS A SHARE REVENUE ROSE FOUR POINT EIGHT PERCENT IN THE LATEST QUARTER TO THIRTY SEVEN POINT TWO SEVEN BILLION DOLLARS FROM THIRTY FIVE POINT FIVE FIVE BILLION DOLLARS IN ITS HUGE NORTH AMERICAN AUTO OPERATIONS G. M. SAID IT HAD A PROFIT FOR THE FOURTH QUARTER OF ABOUT SEVENTY FIVE MILLION DOLLARS EXCLUDING THE THREE HUNDRED FIFTY MILLION DOLLAR TAX BENEFIT THAT REVERSES A YEAR EARLIER LOSS OF ONE POINT SEVEN NINE BILLION DOLLARS AND MARKS THE FIRST TIME G. M.'S NORTH AMERICAN VEHICLE UNIT WAS IN THE BLACK SINCE THE SECOND QUARTER OF NINETEEN EIGHTY NINE G. M. SAID WHILE THE NORTH AMERICAN UNIT WAS STILL IN THE RED TO THE TUNE OF NINE HUNDRED EIGHTY TWO MILLION DOLLARS FOR THE FULL YEAR G. M. SAID IT MET ITS GOAL OF BREAKING EVEN IN NORTH AMERICA BEFORE INTEREST TAXES AND SPECIAL CHARGES POSTING A PROFIT OF THREE HUNDRED SIXTY TWO MILLION DOLLARS FOR NINETEEN NINETY THREE ON THAT BASIS FOR ALL OF NINETEEN NINETY FOUR THE COMPANY HAS VOWED TO AT LEAST BREAK EVEN ON A NETINCOME BASIS IN NORTH AMERICA G. RICHARD WAGONER JUNIOR G. M.'S CHIEF FINANCIAL OFFICER ATTRIBUTED THE TURNAROUND IN NORTH AMERICA TO LOWER MARKETING COSTS TO A SHARP REDUCTION IN CUT RATE VEHICLE SALES TO DAILY RENTAL FLEETS AND TO SIGNIFICANTLY LOWER MATERIALS COSTS AMONG OTHER COST CUTTING MOVES SALES INCENTIVES WERE CUT TO EIGHT HUNDRED EIGHTY DOLLARS A VEHICLE IN THE FOURTH QUARTER FROM NINE HUNDRED SIXTY DOLLARS A YEAR EARLIER MR. WAGONER SAID HE ADDED THAT G. M. MADE PRODUCTIVITY IMPROVEMENTS OF MORE THAN TEN PERCENT LAST YEAR INDEED FIGURES DISCLOSED BY G. M. INDICATE THAT THE IMPROVED RESULTS REFLECT DOGGED ATTENTION TO BUSINESS FUNDAMENTALS WORLD WIDE VEHICLE PRODUCTION PER WORKER IN THE FOURTH QUARTER ROSE FOURTEEN PERCENT FROM A YEAR AGO AND RESULTS PER VEHICLE MADE A SEVEN HUNDRED DOLLAR SWING FROM A LOSS A YEAR AGO TO A PROFIT IN THE FOURTH QUARTER OF ABOUT THREE HUNDRED FORTY DOLLARS G. M. REDUCED AVERAGE WORLD WIDE EMPLOYMENT LAST YEAR BY SIXTY TWO THOUSAND EMPLOYEES TO SEVEN HUNDRED FIVE THOUSAND MR. WAGONER SAID THAT IN NORTH AMERICAN VEHICLE OPERATIONS THE NUMBER OF SALARIED EMPLOYEES IS EXPECTED TO DECLINE THIS YEAR TO THE HIGH SIXTY THOUSANDS FROM SEVENTY ONE THOUSAND AT YEAR END AND HOURLY EMPLOYMENT IS EXPECTED TO DECLINE TO TWO HUNDRED FORTY FIVE THOUSAND TO TWO HUNDRED FIFTY THOUSAND FROM TWO HUNDRED SIXTY TWO THOUSAND AT YEAR END MR. WAGONER ADDED THAT G. M. MANAGED TO HOLD TOTAL HEALTH CARE COSTS TO FIVE POINT SIX BILLION DOLLARS LAST YEAR ABOUT FLAT WITH THE NINETEEN NINETY TWO TOTAL FOR THE FIRST TIME IN THE HISTORY OF MANKIND HE SAID THIS REFLECTED STAFF CUTBACKS TIGHTER COST CONTROLS AND OTHER MEASURES ALSO CONTRIBUTING TO THE FOURTH QUARTER RESULTS WAS A PROFIT OF TWO HUNDRED SEVENTY MILLION DOLLARS FROM INTERNATIONAL AUTO OPERATIONS DOWN SHARPLY FROM THE YEAR EARLIER PROFIT OF FOUR HUNDRED EIGHTY NINE MILLION DOLLARS MR. WAGONER SAID THE DECLINE WAS CHIEFLY BECAUSE OF SHARPLY LOWER EARNINGS IN RECESSION WRACKED EUROPE WALL STREET ANALYSTS POINTED TO G. M.'S SUBSTANTIALLY IMPROVED CASH POSITION AS EVIDENCE THAT THE VITAL SIGNS WERE BETTER THAN EXPECTED AS MORGAN STANLEY'S SCOTT MERLIS PUT IT G. M. FINISHED THE YEAR WITH NINE POINT SEVEN SIX BILLION DOLLARS IN CASH AND CASH EQUIVALENTS ON HAND UP TWO POINT FIVE BILLION DOLLARS FROM A YEAR EARLIER AT THE END OF NINETEEN NINETY ONE G. M. HAD BEEN DOWN TO JUST FOUR BILLION DOLLARS CAPITAL SPENDING OF SIX POINT THREE FIVE BILLION DOLLARS ROUGHLY MATCHED DEPRECIATION AND AMORTIZATION G. M. IMPROVED ITS CASH POSITION DESPITE APPLYING FOUR POINT FOUR BILLION DOLLARS AGAINST ITS UNFUNDED PENSION LIABILITY G. M. SAID THE LIABILITY AMOUNTED TO TWENTY TWO POINT THREE BILLION DOLLARS AT YEAR END LOWER THAN THE TWENTY FOUR BILLION DOLLARS IT HAD FORECAST G. M. ALSO HAS PROPOSED TO CONTRIBUTE FIVE POINT FIVE BILLION DOLLARS OF ITS CLASS E. STOCK TO THE FUND WHICH WOULD REDUCE THE LIABILITY TO SEVENTEEN BILLION DOLLARS MR. WAGONER SAID THE COMPANY IS MAKING GOOD PROGRESS TOWARD GETTING GOVERNMENT CLEARANCES FOR THE MOVE CLASS E. STOCK REPRESENTS A DIVIDEND INTEREST IN EARNINGS OF G. M.'S ELECTRONIC DATA SYSTEMS INCORPORATED UNIT MR. WAGONER EMPHASIZED THAT G. M. NEEDS TO CONTINUE GENERATING CONSIDERABLE CASH AS THE U. S. AUTO MARKET EXPANDS SO THAT IT CAN FURTHER REDUCE THE PENSION LIABILITY AND PAY OFF DEBT BEFORE THE NEXT DOWN CYCLE WE NEED A STRONG NINETY FOUR AND NINETY FIVE AND IT WOULD BE NICE IF WE COULD GO UNTIL NINETY SEVEN OR NINETY EIGHT BEFORE THE NEXT DOWNTURN MR. WAGONER SAID WHILE MR. WAGONER WOULDN'T DISCLOSE HOW MUCH G. M. WANTS TO PAY INTO THE FUND THIS YEAR WALL STREET ANALYSTS CALCULATE THAT THE COMPANY COULD GENERATE ENOUGH CASH TO MATCH LAST YEAR'S CONTRIBUTION AND IF INTEREST RATES EDGE UP CHANGING THE ASSUMPTIONS BEHIND THE LIABILITY QUOTE THEY COULD HAVE IT DOWN TO NINE BILLION DOLLARS OR TEN BILLION DOLLARS BY THE END OF THE YEAR QUOTE MR. KIRNAN OF SALOMON BROTHERS SAID MR. WAGONER DECLINED TO FORECAST G. M.'S EARNINGS FOR THIS YEAR BUT HE INDICATED THAT MANGEMENT'S GOAL IS TO PUSH THE RATIO OF NET INCOME TO NET SALES TOTAL REVENUE MINUS FINANCE UNIT REVENUE AND CERTAIN OTHER REVENUES TO FIVE PERCENT FROM LAST YEAR'S TWO PERCENT BASED ON NINETEEN NINETY THREE'S NET SALES OF ONE HUNDRED TWENTY FIVE POINT THREE BILLION DOLLARS THAT WOULD TRANSLATE TO FULL YEAR NET INCOME OF SIX POINT THREE BILLION DOLLARS OR ABOUT EIGHT DOLLARS AND EIGHTY CENTS A SHARE WHEN THAT GOAL IS REACHED WHILE NOBODY IS FORECASTING EARNINGS OF THAT MAGNITUDE FOR NINETEEN NINETY FOUR WALL STREET ANALYSTS ARE PREDICTING PROFITS OF FIVE DOLLARS AND TWENTY FIVE CENTS TO FIVE DOLLARS AND FIFTY CENTS A SHARE AND MR. KIRNAN FOR ONE SEES EARNINGS ON THE ORDER OF EIGHT DOLLARS AND FIFTY CENTS A SHARE BY NINETEEN NINETY FIVE FOR ALL OF NINETEEN NINETY THREE G. M. POSTED NET INCOME OF TWO POINT FOUR SEVEN BILLION DOLLARS OR TWO DOLLARS AND THIRTEEN CENTS A SHARE COMPARED WITH A NINETEEN NINETY TWO NET LOSS OF TWENTY THREE POINT FIVE BILLION DOLLARS OR FOUR DOLLARS AND EIGHTY FIVE CENTS A SHARE THE NINETEEN NINETY THREE RESULTS INCLUDE A CHARGE OF FIVE HUNDRED EIGHTY NINE MILLION DOLLARS OR EIGHTY THREE CENTS A SHARE FOR PLANT CLOSINGS THE LOSS ON THE SALE OF THE GAS TURBINE UNIT OF ONE HUNDRED EIGHTY NINE POINT FIVE MILLION DOLLARS OR TWENTY SEVEN CENTS A SHARE A CHARGE OF ONE HUNDRED FORTY THREE POINT EIGHT MILLION DOLLARS OR TWENTY CENTS A SHARE RELATED TO LABOR CONTRACT COSTS AND THE TWO TAX BENEFIT GAINS THE NINETEEN NINETY TWO NET LOSS INCLUDES A TWENTY POINT EIGHT EIGHT BILLION DOLLAR CHARGE OR THIRTY THREE DOLLARS AND FORTY THREE CENTS A SHARE RELATED TO AN ACCOUNTING CHANGE FOR EMPLOYEE HEALTH BENEFITS A SPECIAL RESTRUCTURING CHARGE OF SEVEN HUNDRED FORTY NINE POINT FOUR MILLION DOLLARS OR NINETY SEVEN CENTS A CHARE THE SEVEN HUNDRED FORTY FOUR POINT ONE MILLION DOLLAR WRITE DOWN OF NATIONAL CAR RENTAL AND THE ONE HUNDRED SIXTY FIVE POINT ONE MILLION DOLLAR GAIN ON THE DAEWOO SALE MACMILLAN BLOEDEL LIMITED SAID IT WILL INVEST TWO HUNDRED MILLION CANADIAN DOLLARS ONE HUNDRED FORTY NINE MILLION U. S. DOLLARS IN A NEW LIGHTWEIGHT COATED PAPER MACHINE AT ITS MILL IN PORT ALBERNI BRITISH COLUMBIA THE VANCOUVER BRITISH COLUMBIA BASED FOREST PRODUCTS COMPANY SAID THE INVESTMENT IS PART OF A STRATEGY TO REDUCE ITS DEPENDENCE ON THE SALE OF SUCH COMMODITIES AS NEWSPRINT THE PORT ALBERNI MILL NOW MAKES NEWSPRINT AND DIRECTORY PAPER LIGHTWEIGHT COATED PAPER IS USED IN MAGAZINES THE NEW MACHINE TO BEGIN OPERATING BY LATE NINETEEN NINETY FIVE WILL PRODUCE ONE HUNDRED SEVENTY SIX TONS A YEAR ROBERT FINDLAY PRESIDENT AND CHIEF EXECUTIVE SAID THE INVESTMENT DECISION WAS MADE DESPITE CONCERN ABOUT WOOD FIBER SUPPLIES A BRITISH COLUMBIA COMMISSION THIS WEEK RECOMMENDED REDUCING LOGGING ON VANCOUVER ISLAND WHERE PORT ALBERNI IS SITUATED STANDARD AND POOR'S CORPORATION SAID IT WOULD INCLUDE PACIFIC TELESIS GROUP AND ITS PACTEL CORPORATION UNIT IN THE S. AND P. FIVE HUNDRED INDEX FOLLOWING THE UNIT'S SPINOFF THE RATINGS AGENCY SAID PACIFIC TELESIS SOLD FOURTEEN PERCENT OF THE UNIT IN DECEMBER AND PLANS TO SELL THE REMAINING EIGHTY SIX PERCENT BY THE END OF THE SECOND QUARTER PACTEL IT ADDED WILL HAVE AN ESTIMATED MARKET VALUE OF TWELVE BILLION DOLLARS OR FIFTY PERCENT OF PACIFIC TELESIS' MARKET VALUE BEFORE THE SPINOFF S. AND P. SAID IT WOULD ANNOUNCE THE REMOVAL OF A COMPANY FROM THE INDEX CLOSER TO THE DATE OF THE SPINOFF MERLE A. QUOTE CONKY QUOTE JOHNSTON WAS NAMED A DIRECTOR OF THIS SPECIALTY RETAILER OF WOMEN'S APPAREL SHE SUCCEEDS HARRIET MELLINGER WHO DIED LAST APRIL MS. JOHNSTON SIXTY ONE YEARS OLD IS A PARTNER WITH TRI C. ENTERPRISES A MANAGEMENTCONSULTING FIRM SHE RECENTLY FORMED PREVIOUSLY SHE WAS PRESIDENT OF A BONGRAIN S. A. DIVISION IN ITS FIRST MAJOR INTERACTIVE SOFTWARE INVESTMENT M. C. A. INCORPORATED SAID IT ACQUIRED A STAKE IN CLOSELY HELD INTERPLAY PRODUCTIONS INCORPORATED A TEN YEAR OLD MAKER OF C. D. ROM AND VIDEO GAMES BASED IN IRVINE CALIFORNIA THE COMPANIES DIDN'T DISCLOSE TERMS BUT M. C. A. CALLED ITS ACQUISITION QUOTE A SIGNIFICANT MINORITY STAKE QUOTE MEANING BETWEEN TWENTY PERCENT AND THIRTY PERCENT WITH AN OPTION TO ACQUIRE NEARLY FIFTY PERCENT INTERPLAY'S ESTIMATED NINETEEN NINETY THREE REVENUE IS ABOUT SIXTY MILLION DOLLARS AND M. C. A.'S INVESTMENT IS THOUGHT TO BE ABOUT SIXTY MILLION DOLLARS THE REST OF THE COMPANY IS HELD BY INSIDERS M. C. A. LAST MONTH FORMED UNIVERSAL INTERACTIVE STUDIOS WHICH WILL PUBLISH INTERACTIVE SOFTWARE FOR COMPUTERS AND GAME MACHINES EXECUTIVE VICE PRESIDENT SKIP PAUL WHO HEADS THE UNIT SAID INTERPLAY WILL BE M. C. A.'S MAJOR VEHICLE FOR DEVELOPING SUCH SOFTWARE WE'RE GOING TO PUT OUR RESOURCES INTO IT AND GROW IT BIG HE SAID INTERPLAY PRESIDENT BRIAN FARGO THIRTY ONE YEARS OLD WHO DROPPED OUT OF JUNIOR COLLEGE TO FOUND THE COMPANY SAID THAT IN THE CURRENT INTERACTIVE CRAZED CLIMATE HE'S LISTENED TO A STEADY STREAM OF INVESTMENT BANKERS URGE HIM TO TAKE THE COMPANY PUBLIC SOME SIMILAR COMPANIES HAVE BEEN RAISING MONEY THAT VALUES THEM AT THREE TO FIVE TIMES SALES GOING PUBLIC SEEMS TO BE SOME PEOPLE'S CROWNING JEWEL IN LIFE BUT IT'S NOT MINE I WANTED SOMEBODY TO COME TO THE PARTY WITH MORE THAN JUST MONEY M. C. A. HE SAID WILL PROVIDE NOT ONLY DISTRIBUTION CLOUT AND ACCESS TO M. C. A. OWNED ENTERTAINMENT PROPERTIES AND TALENT BUT EXPERTISE IN COMMERCIAL STORYTELLING IN ORDER FOR OUR MEDIUM TO BECOME BIGGER WE NEED TO LEARN ABOUT SET DESIGN CHARACTER DEVELOPMENT PLOT CAMERA MOVEMENT HE SAID INTERPLAY WHICH IS BEST KNOWN FOR ITS QUOTE BATTLE CHESS QUOTE SERIES HAD A RECENT TOP SELLING GAME FOR THE SUPER NINTENDO PLATFORM QUOTE CLAY FIGHTER QUOTE IT ALSO OWNS ALL INTERACTIVE RIGHTS TO THE ORIGINAL STAR TREK TELEVISION SERIES IT ALSO HELPS OTHER DEVELOPERS BUNDLE THEIR SOFTWARE WITH HARDWARE MANUFACTURERS WHILE SOME COMPANIES WITH MOVIE AND TELEVISION STUDIOS LIKE TIME WARNER INCORPORATED SONY CORPORATION AND PARAMOUNT COMMUNICATIONS INCORPORATED HAVE STARTED LARGE IN HOUSE SOFTWARE DIVISIONS AND ACQUIRED STAKES IN MANY OUTSIDE SOFTWARE COMPANIES M. C. A. THUS FAR HAS LIMITED ITS SPENDING TO A FIFTEEN PERCENT STAKE IN THREE D. O. COMPANY A MUCH TOUTED COMPANY FORMED TO SUPPORT A NEW STANDARD FOR INTERACTIVE MULTIMEDIA SYSTEMS THE INTERACTIVE GAME MACHINE THAT SUPPORTS THREE D. O. LICENSED SOFTWARE IS MANUFACTURED BY M. C. A.'S PARENT MATSUSHITA ELECTRIC INDUSTRIAL COMPANY INTERPLAY HAS BEEN A DEVELOPER FOR THREE D. O. AND MR. FARGO SAID HE EXPECTS THAT ROLE TO INCREASE SOME HAVE SPECULATED THAT ELECTRONIC ARTS INCORPORATED'S AGREEMENT THIS WEEK TO ACQUIRE BRODERBUND SOFTWARE INCORPORATED IN A FOUR HUNDRED MILLION DOLLAR STOCK SWAP WILL CAUSE BRODERBUND TO INCREASE ITS SUPPORT FOR THREE D. O. THREE DO'S D. STOCK PRICE HAS FALLEN BACK FROM PREVIOUS HIGHS AMID FEARS ITS MACHINE ISN'T SELLING QUICKLY ENOUGH STRIDE RITE CORPORATION SAID THAT SALES AND EARNINGS FOR THE FISCAL FIRST QUARTER ENDING MARCH FOURTH WILL TRAIL YEAR EARLIER RESULTS BECAUSE OF PROBLEMS AT A NEW DISTRIBUTION CENTER IN KENTUCKY THE CAMBRIDGE MASSACHUSETTS SHOEMAKER SAID SALES FOR THE QUARTER QUOTE ARE EXPECTED TO BE BELOW LAST YEAR'S RESULTS QUOTE AND EARNINGS QUOTE ARE EXPECTED TO BE OFF QUOTE BY MORE THAN FIFTEEN PERCENT IT DECLINED TO BE MORE SPECIFIC IN THE YEAR EARLIER QUARTER STRIDE RITE NET INCOME WAS FIFTEEN POINT TWO MILLION DOLLARS OR THIRTY CENTS A SHARE ON REVENUE OF ONE HUNDRED FORTY POINT EIGHT MILLION DOLLARS THE PROBLEMS WITH THE LOUISVILLE KENTUCKY FACILITY ARE IRONIC BECAUSE STRIDE RITE WEATHERED A STORM OF CONTROVERSY LAST YEAR WHEN IT ANNOUNCED ITS PLAN TO OPEN THE PLANT STRIDE RITE WHICH HAD A LONG HISTORY OF PROMOTING SOCIAL RESPONSIBILITY CLOSED AN INNER CITY DISTRIBUTION CENTER IN BOSTON FIRING ONE HUNDRED SEVENTY FIVE WORKERS IN LATE TRADING STRIDE RITE STOCK WAS DOWN SIXTY TWO POINT FIVE CENTS AT FIFTEEN DOLLARS AND SEVENTY FIVE CENTS AT A TIME OF UNPRECEDENTED OPPORTUNITY FOR U. S. CAR MAKERS IN JAPAN FORD MOTOR COMPANY IS PULLING OUT ALL THE STOPS AMERICA'S NUMBER TWO AUTO MAKER IS BLITZING JAPAN'S CONSUMERS WITH A MASSIVE NEW AD CAMPAIGN TOUTING QUOTE MY FIRST FORD QUOTE SOON FORD WILL MARKET RIGHT HAND DRIVE CARS TO MATCH THE JAPANESE STANDARD AND IN THE MOST BRAZEN STATEMENT OF ITS PRESENCE FORD IS PUTTING ITS OWN NAME ON A JAPANESE DEALER NETWORK A FIRST FOR A U. S. CAR MAKER NOW IS A GOOD TIME FOR THE NEW INVADERS TO ATTACK THE MARKET WHEN THOSE JAPANESE AUTO INDUSTRY GIANTS ARE SEEMING TO LOSE THEIR DIRECTION AND CONFIDENCE SAYS KONEN SUZUKI A FORMER TOYOTA MOTOR CORPORATION MANAGING DIRECTOR WHO IS PRESIDENT OF FORD'S JAPAN UNIT THIS YEAR MR. SUZUKI PLANS TO TRIPLE JAPANESE SALES OF FORDS MADE OVERSEAS TO FIFTEEN THOUSAND VEHICLES BY THE END OF THE DECADE HE ENVISIONS DRASTIC EXPANSION OF JAPAN'S FORD DEALERSHIPS UP TO ONE THOUSAND OUTLETS TRIPLE TODAY'S NUMBER SELLING A TOTAL OF TWO HUNDRED THOUSAND FORDS ANNUALLY FORD'S JAPAN PUSH IS WELL TIMED DETROIT'S AUTO MAKERS ARE SUDDENLY OUTPERFORMING THEIR JAPANESE COMPETITORS FINANCIALLY LENDING THE BIG THREE NEW CREDIBILITY WHILE DOMESTIC MAKERS STUMBLE RECENT U. S. MODELS ARE GETTING GLOWING PRESS COVERAGE CURRENCY TRENDS ALSO ARE HELPING THE AMERICANS IN RECESSIONARY JAPAN FORD SAYS IT HAS CUT PRICES TWENTY FIVE PERCENT SINCE NINETEEN EIGHTY NINE AND WHEN CHRYSLER CORPORATION CUT PRICES ON ITS JEEP CHEROKEE SALES ALMOST TRIPLED IN JAPAN DEMONSTRATING THAT JAPANESE CONSUMERS DO INDEED HAVE AN APPETITE FOR FOREIGN PRODUCTS THE MARKETING DRIVE ALSO COMES AT A TIME WHEN U. S. OFFICIALS ARE DIGGING IN THEIR HEELS IN TRADE TALKS TO OPEN THE JAPANESE MARKET YET FURTHER TO AMERICAN GOODS AND WHILE FORD'S SALES IN JAPAN LAG BEHIND THOSE OF GENERAL MOTORS CORPORATION AND CHRYSLER WHICH IS HELPED BY ITS POPULAR FOUR WHEEL DRIVE VEHICLES EXPERTS SAY FORD IS IN THE BEST POSITION TO EXPLOIT THE NEW OPPORTUNITIES IN CONJUNCTION WITH MAZDA MOTOR CORPORATION FORD'S TWENTY FIVE PERCENT OWNED AFFILIATE THE COMPANY OWNS AUTORAMA A STRING OF TWO EIGHTY SIX JAPANESE DEALERSHIPS IN CONTRAST G. M. AND CHRYSLER SELL THROUGH LOCAL PARTNERS' OUTLETS LAST YEAR FORD'S SALES OF ITS U. S. MADE CARS ROSE FIFTY PERCENT TO MORE THAN FIVE THOUSAND VEHICLES WHILE AUTORAMA DEALERS SOLD ROUGHLY THIRTY NINE THOUSAND FORD MARQUE CARS MADE BY MAZDA WITH ITS CURRENT MOVES FORD IS GETTING BOLDER THAT'S ESPECIALLY REFLECTED IN ITS DECISION THIS WEEK TO TAKE DOWN THE AUTORAMA SIGNS AND REPLACE THEM WITH ONES THAT SAY FORD TETSUHIKO NAKAMURA DIRECTOR OF AUTORAMA'S MAIN OFFICE IN TOKYO SAYS HE SEES PROOF OF FORD'S PRESENCE IN GROWING TRAFFIC THROUGH HIS STORES FORD IS FORMING MORE OF AN IDENTITY HERE HE SAYS IT HAS NEW CHARACTER THE BOLDER CHARACTER CAN ALSO BE SEEN IN FORD'S ADS WHICH ATTACK PERCEPTIONS THAT ITS CARS DON'T MEASURE UP TO THE JAPANESE AND CLAIM AN EDGE IN COMFORT AND SAFETY SAFETY IS SELDOM PROMOTED BY JAPANESE COMPETITORS THOUGH IT HAS BEEN USED BY OTHER FOREIGN LINES SUCH AS THAT OF MERCEDES BENZ A. G. A UNIT OF GERMANY'S DAIMLER BENZ A. G. OUR PRODUCT'S REAL STRENGTH IS THAT IT IS MUCH BETTER THAN PEOPLE'S PERCEPTIONS SAYS MR. SUZUKI WHO COMMISSIONED W. P. P. GROUP'S J. WALTER THOMPSON UNIT AND JAPANESE ADVERTISING GIANT DENTSU INCORPORATED TO DEVELOP THE NEW CAMPAIGN THE JAPANESE PRINT ADS FOR FORD'S AMERICAN MADE TAURUS AND EXPLORER MODELS PUSH THE IDEA OF SPACE QUOTE TWO FAMILIES ARE WELCOME QUOTE BECKONS THE CAPTION FOR THE TAURUS STATION WAGON IT'S A REVOLUTIONARY PROPOSAL IN THIS CRAMPED SOCIETY AND APPARENTLY A WELCOME ONE WAGONS MAKE UP ABOUT NINETY PERCENT OF TAURUS SALES HERE LAST MONTH FORD BEGAN TELEVISION ADS FIVE EVENINGS A WEEK AND PLANS TO INCREASE THE FREQUENCY BEFORE THE DEBUT OF NEW MODELS IN THE SPRING THE ADS WHICH SHOW DUAL AIRBAGS AND BEAR THE SLOGAN MY FIRST FORD ARE AN ATTEMPT TO MAKE JAPANESE PEOPLE FEEL MORE COMFORTABLE ABOUT BUYING A FORD SAYS JUN NAKANO A DENTSU ACCOUNT EXECUTIVE AFTER ALL HE ADDS MOST JAPANESE ARE IN FACT BUYING A FORD FOR THE FIRST TIME ALL THE FUSS HAS MADE PEOPLE LIKE HIROSHI ITO CURIOUS HE HAS DRIVEN A NISSAN MODEL FOR THE PAST TEN YEARS BUT RECENTLY DROPPED INTO AN AUTORAMA DEALERSHIP NEAR TOKYO'S FISH MARKET DISTRICT LOOKING TO BROWSE THROUGH TAURUS BROCHURES I'VE LIKED THE TAURUS FOR A LONG TIME SAYS THE FORTY SEVEN YEAR OLD FISH DISTRIBUTOR I LIKE THE DESIGN FIRST OF ALL STRETCHING HIMSELF OUT LUXURIOUSLY IN FRONT OF A SALES DESK HE NOTES YOU CAN DO THIS IN A TAURUS YOU CAN'T DO IT IN A JAPANESE CAR QUOTE THE TAURUS PRICE IS ALSO A SELLING POINT HE ADDS RIGHT NOW IT'S CHEAP TO BUY AMERICAN HE SAYS IN FACT AT THREE POINT ONE THREE MILLION YEN TWENTY EIGHT THOUSAND EIGHT HUNDRED SEVENTY FOUR DOLLARS THE TAURUS WAGON IS SIGNIFICANTLY LESS EXPENSIVE THAN THE COMPETING TOYOTA CAMRY WHICH RINGS IN AT THREE POINT THREE MILLION YEN THIRTY THOUSAND FOUR HUNDRED FORTY TWO DOLLARS TRADE PRESSURES GIVE FORD A LEG UP TOO THE U. S. GOVERNMENT HAS PRESSED JAPANESE AUTO MAKERS TO LET THEIR DEALERS SELL U. S. CARS TOKYO AREA NISSAN MOTOR COMPANY DEALERS RECENTLY SAID THEY WANT TO CARRY FORD VEHICLES AND FORD SAYS IT MAY TAKE THEM UP ON THE OFFER THE CHANGING ENVIRONMENT COULD SEND A MESSAGE TO OTHER U. S. CAR MAKERS IS THIS AN OPPORTUNITY WELL YOU BET IT IS SAYS STEPHEN USHER AN ANALYST WITH KLEINWORT BENSON INTERNATIONAL INCORPORATED AMERICANS SHOULD BE IN JAPAN NOW ON TOP OF CURRENCY RELATED ADVANTAGES HE SAYS JAPANESE ATTITUDES TOWARDS U. S. MADE CARS HAVE BEEN CHANGING AS WELL THE FACT THAT BOTH COMPANIES FORD AND MAZDA ARE WILLING TO COME OUT OF THE CLOSET AND SAY HEY WE SELL FORDS HERE IS AN INDICATION OF THE IMPROVING PERCEPTION HE SAYS QUOTE DETROIT NO LONGER HAS ANYTHING TO BE ASHAMED OF QUOTE A FLEDGLING RADIO BROADCASTING COMPANY IS PROPOSING TO CARVE OUT A NICHE ON THE ENTERTAINMENT HIGHWAY SUBSCRIPTION MUSIC PROGRAMMING FOR THE CAR RADIO WASHINGTON D. C. BASED C. D. RADIO INCORPORATED FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO RAISE ABOUT FIFTY MILLION DOLLARS IN AN INITIAL PUBLIC OFFERING BASED ON ITS SATELLITE RADIO SIGNAL CONCEPT THE COMPANY IS PROPOSING TO SELL FOUR POINT FIVE MILLION SHARES AT AN ESTIMATED TEN DOLLARS TO TWELVE DOLLARS A SHARE WHICH WOULD GIVE THE COMPANY A MARKET VALUE OF ONE HUNDRED TWENTY MILLION DOLLARS TO ONE HUNDRED FORTY FOUR MILLION DOLLARS BASED ON TWELVE MILLION SHARES OUTSTANDING SEIDLER COMPANIES AND FIRST MARATHON SECURITIES LIMITED ARE UNDERWRITERS THE COMPANY ENVISIONS LAUNCHING ITS C. D. RADIO SYSTEM BY MID NINETEEN NINETY SEVEN THE SYSTEM INCLUDES A SILVER DOLLAR SIZED ANTENNA THAT WILL PICK UP THIRTY CHANNELS OF DIGITAL COMPACT DISK QUALITY MUSIC FROM JAZZ TO CLASSICAL ON A SPECIAL QUOTE S. BAND QUOTE RADIO THE COMMERCIAL FREE CHANNELS WOULD RUN TWENTY FOUR HOURS A DAY NATIONWIDE AND C. D. RADIO SAYS IT LATER WOULD ADD AS MANY AS TWENTY CHANNELS OF OTHER FORMATS SUCH AS ALL NEWS SPORTS OR TALK PROGRAMS THE PROSPECTUS SAYS C. D. RADIO PLANS TO USE PROCEEDS FROM THE OFFERING FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES INCLUDING MARKET RESEARCH AS WELL AS ONE MILLION DOLLARS TO DEVELOP THE SPECIAL INTEGRATED CIRCUIT NEEDED TO RECEIVE THE DIGITAL RADIO SATELLITE SIGNALS BUT CONSIDERABLE HURDLES REMAIN THE SERVICE REQUIRES FEDERAL COMMUNICATIONS COMMISSION APPROVAL AND THE FILING SAYS C. D. RADIO WOULD NEED TO RAISE ABOUT FOUR HUNDRED NINETY FOUR MILLION DOLLARS TO BUILD AND LAUNCH TWO NECESSARY SATELLITES AND OPERATE THE SYSTEM FOR THE FIRST YEAR THE FILING CAUTIONS THAT A SIGNIFICANT DELAY IN DEVELOPING BUILDING LAUNCHING AND BEGINNING OPERATION COULD HAVE A MATERIAL ADVERSE EFFECT ON THE COMPANY MOREOVER IT WARNS THERE CAN BE NO ASSURANCE THAT THE C. D. RADIO SYSTEM WILL ACTUALLY FUNCTION AS CURRENTLY CONTEMPLATED C. D. RADIO HAS A CONTRACT FOR A LORAL CORPORATION UNIT TO BUILD TWO SATELLITES FOR THE SERVICE WHICH WOULD BE AVAILABLE FOR ABOUT TEN DOLLARS A MONTH SUBSCRIBERS WOULD HAVE TO PURCHASE A SO CALLED S. BAND RADIO C. D. RADIO SAYS THE S. BAND RADIOS WOULD RESEMBLE TODAY'S A. M. SLASH F. M. RECEIVERS AND LIKELY WOULD INCLUDE THE A. M. SLASH F. M. BANDS AS WELL AS A DIGITAL DISPLAY SHOWING THE C. D. RADIO CHANNEL NUMBER SONG TITLE RECORDING ARTIST ALBUM TITLE AND RECORD LABEL S. BAND RADIOS ARE EXPECTED TO BE SOMEWHAT MORE EXPENSIVE THAN TRADITIONAL RADIOS THE FILING SAYS NO SUCH DEVICES HAVE YET BEEN BUILT FOR COMMERCIAL SALE THE FILING SAYS C. D. RADIO IS SEEKING TO CLAIM A FOOTHOLD IN THE PROPOSED DIGITAL AUDIO RADIO SERVICE THAT THE F. C. C. IS CONSIDERING THE FILING SAYS THE NATIONAL ASSOCIATION OF BROADCASTERS HAS OPPOSED GRANTING THE F. C. C. LICENSE C. D. RADIO IS ONE OF FOUR COMPANIES SEEKING AN F. C. C. LICENSE TO OPERATE SATELLITE RADIO TECHNOLOGY THE FILING SAYS THE F. C. C. APPROVAL IS LIKELY BEFORE THE SATELLITES' EXPECTED LAUNCH BETWEEN DECEMBER NINETEEN NINETY SIX AND JUNE NINETEEN NINETY SEVEN THE DATES IT HAS RESERVED WITH ARIANESPACE THE EUROPEAN SATELLITE LAUNCHING CONSORTIUM SINCE ITS FORMATION IN NINETEEN NINETY C. D. RADIO HAS SPENT ABOUT TEN MILLION DOLLARS DEVELOPING ITS PROPOSAL THE COMPANY EXPECTS TO REPORT LOSSES THROUGH AT LEAST THE FIRST FULL YEAR OF C. D. RADIO BROADCASTS IN NINETEEN NINETY THREE THE COMPANY HAD A NET LOSS OF SIX POINT SIX MILLION DOLLARS SINCE NINETEEN NINETY IT HAS ACCUMULATED A NINE POINT FIVE MILLION DOLLAR DEFICIT LAST APRIL C. D. RADIO PURCHASED SKY HIGHWAY RADIO CORPORATION A COMPETING APPLICANT FOR TWO MILLION DOLLARS TAKING A TWO MILLION DOLLAR CHARGE AGAINST ITS NINETEEN NINETY THREE RESULTS OWENS AND MINOR INCORPORATED AND STUART MEDICAL INCORPORATED SAID THE JUSTICE DEPARTMENT COMPLETED ITS ANTITRUST REVIEW OF THE COMPANIES' PROPOSED COMBINATION WITHOUT REQUESTING MORE INFORMATION RICHMOND VIRGINIA BASED OWENS AND MINOR THE NATION'S SECOND LARGEST DISTRIBUTOR OF MEDICAL AND SURGICAL SUPPLIES IN DECEMBER SAID IT PLANNED TO PURCHASE CLOSELY HELD STUART MEDICAL GREENSBURG PENNSYLVANIA FOR FORTY POINT TWO MILLION DOLLARS IN CASH AND ONE HUNDRED FIFTEEN MILLION DOLLARS OF CONVERTIBLE PREFERRED STOCK THE PURCHASE OF STUART MEDICAL ALSO A DISTRIBUTOR OF MEDICAL AND SURGICAL SUPPLIES IS EXPECTED TO CLOSE SOON AFTER AN OWENS AND MINOR SHAREHOLDER VOTE THAT IS EXPECTED TO BE HELD IN APRIL IT WAS AN IDYLLIC MOMENT FOR GEOFFREY GOODFELLOW HE WAS SITTING ON THE BEACH IN HAWAII READING AND ANSWERING ELECTRONIC MAIL STORED IN CALIFORNIA IT WAS ALSO AN EPIPHANY THE YEAR WAS NINETEEN SEVENTY FIVE AND MR. GOODFELLOW THEN A NINETEEN YEAR OLD HACKER AND HIGH SCHOOL DROPOUT HAD GOTTEN HIS FIRST GLIMPSE OF THE WIRELESS FUTURE HE HAS SINCE WORKED HIS WAY INTO THE MIDDLE OF THAT WORLD TODAY AS THE CHAIRMAN AND FOUNDER OF RADIOMAIL CORPORATION MR. GOODFELLOW IS SHAPING THE TECHNOLOGY'S EVOLUTION PROVIDING A UNIVERSAL LINK THROUGH WHICH PEOPLE ON ALMOST ANY COMBINATION OF WIRELESS AND WIRED NETWORKS CAN COMMUNICATE QUOTE WE'VE BEEN CONCENTRATING ON THE PLUMBING OF CYBERSPACE QUOTE MR. GOODFELLOW SAYS SO FAR NO ONE REALLY KNOWS HOW TO DO THAT AS WELL AS WE DO MR. GOODFELLOW WHO GOT HIS FIRST COMPUTING JOBS FROM SYSTEMS MANAGERS IMPRESSED BY HIS UNAUTHORIZED INTRUSIONS INTO THEIR MACHINES IS A SLENDER THIRTY SEVEN YEAR OLD WITH SHAGGY BLOND HAIR AND A PENCHANT FOR SURFER STYLE CLOTHES HE STILL LIKES TO RUN LIGHTING EFFECTS AT SAN FRANCISCO DANCE CLUBS YET HIS COMPANY WITH JUST THIRTY EMPLOYEES FEWER THAN TWO THOUSAND CUSTOMERS AND LESS THAN TWO MILLION DOLLARS IN REVENUE LAST YEAR PROVIDES ONE OF THE MOST ADVANCED SERVICES IN THE EMERGING MARKET FOR PORTABLE DATA TRANSMISSION RADIOMAIL BASED IN SAN MATEO CALIFORNIA IS A SORT OF HIGH TECH ANSWERING SERVICE THAT TAKES ELECTRONIC MAIL MESSAGES FOR ITS CUSTOMERS AND MAKES SURE THEY GET THEM IT DOESN'T HAVE A WIRELESS TRANSMISSION SYSTEM OF ITS OWN RATHER IT PACKAGES THE HARDWARE AND SOFTWARE NEEDED TO SEND AND RECEIVE WIRELESS MESSAGES ON PORTABLE COMPUTERS AND ITS OWN COMPUTERS ROUTE CUSTOMERS' MESSAGES TO AND FROM ANY COMBINATION OF WIRELESS CARRIERS CORPORATE NETWORKS ON LINE SERVICES AND THE INTERNET WHICH OFFERS LINKS BETWEEN JUST ABOUT EVERY PUBLIC AND PRIVATE NETWORK RADIOMAIL WAS THE PIONEER IN FORGING THESE KINDS OF CONNECTIONS BUT IT'S NO LONGER ALONE LAST SEPTEMBER AMERICAN TELEPHONE AND TELEGRAPH COMPANY BEGAN OFFERING WIRELESS MESSAGING THROUGH A SERVICE CALLED EASYLINK WHICH OFFERS THE SAME BREADTH OF CONNECTIONS TO COMPUTER NETWORKS AS THE MARKET GROWS OTHER COMPANIES ARE SURE TO JUMP IN IN FACT THE COMPANY LAST MONTH SHUFFLED TOP MANAGERS AND IS MODIFYING ITS MARKETING MESSAGE TO COUNTER INCREASED COMPETITION MR. GOODFELLOW WHO SAYS RADIOMAIL IS LOSING MONEY RIGHT ON SCHEDULE AND WON'T BE PROFITABLE UNTIL LATE THIS YEAR AT THE EARLIEST ARGUES THAT RADIOMAIL WILL RETAIN IMPORTANT ADVANTAGES AMONG THEM HE IS COUNTING ON BEING QUICKEST TO TIE IN TO EVERY PROMISING WIRELESS COMMUNICATIONS TECHNOLOGY THAT POPS UP INCLUDING COMING DIGITAL CELLULAR AND SATELLITE TRANSMISSION SYSTEMS WHAT GEOFF HAS SET UP IS THE SWITZERLAND OF WIRELESS COMMUNICATIONS SAYS PAUL SAFFO AN ANALYST WITH THE INSTITUTE FOR THE FUTURE A THINK TANK IN MENLO PARK CALIFORNIA IT'S A TINY COUNTRY THAT IS NEUTRAL GROUND RADIOMAIL NOW ROUTES MESSAGES THROUGH DATA ONLY RADIO NETWORKS OPERATED BY RAM MOBILE DATA OWNED BY BELLSOUTH CORPORATION OF ATLANTA AND RAM BROADCASTING CORPORATION OF WOODBRIDGE N. J. AND ARDIS A JOINT VENTURE OF MOTOROLA INCORPORATED AND INTERNATIONAL BUSINESS MACHINES CORPORATION USERS PAY RADIOMAIL EIGHTY NINE DOLLARS A MONTH FOR UNLIMITED MESSAGES A ONE TIME NINETY NINE DOLLARS SETUP FEE AND FORTY NINE DOLLARS FOR SOFTWARE THEY ALSO MUST BUY A RADIO MODEM CURRENT MODELS COST ABOUT SEVEN HUNDRED SEVENTY FIVE DOLLARS AND ARE ABOUT THE SIZE OF A POCKET CELLULAR PHONE THOUGH MUCH SMALLER MODELS ARE DUE OUT THIS YEAR RADIOMAIL'S SERVICE WORKS WITH MODEMS MADE BY MOTOROLA AND ERICSSON G. E. MOBILE COMMUNICATIONS INCORPORATED A VENTURE OF GENERAL ELECTRIC COMPANY AND TELEFON A. B. LM ERICSSON OF SWEDEN TO SEND A MESSAGE TO SAY MR. GOODFELLOW FROM YOUR WIRELESS DEVICE YOU WOULD TAP IN HIS ADDRESS GEOFF AT RADIOMAIL.NET AND HIT THE SEND BUTTON THE MESSAGE WOULD MOVE OVER RADIO WAVES INTO THE ARDIS OR RAM NETWORKS WHICH HAVE TRANSMISSION TOWERS IN MOST U. S. CITIES NEXT PHONE LINKS WOULD CARRY IT TO RADIOMAIL'S SWITCHING CENTER A ROOM AT HEADQUARTERS PACKED WITH WIRES AND WORKSTATIONS FROM THERE THE PROCESS WOULD BE REVERSED THE MESSAGE WOULD BE ROUTED OUT FIRST OVER PHONE LINES AND THEN OVER RAM OR ARDIS TO MR. GOODFELLOW'S PALMTOP COMPUTER RADIOMAIL HAS SPAWNED A COMMUNITY OF USERS WHO ZAP MESSAGES BACK AND FORTH TO SPEED DECISION MAKING NETWORK COMPUTING MAGAZINE LAST MARCH SET UP ACCOUNTS FOR NINE EDITORS WHO HAVE OFFICES AROUND THE COUNTRY SAYS GARY BOLLES ITS EDITOR IN CHIEF ALAN REITER EDITOR OF MOBILE DATA REPORT A NEWSLETTER IN ALEXANDRIA VIRGINIA SAYS I RARELY HAVE TO WORRY ABOUT DEALING WITH A CANTANKEROUS HOTEL PHONE SYSTEM SENDING A STORY IS BASICALLY AS EASY AS PUSHING THE SEND BUTTON QUOTE PERHAPS THE HEAVIEST USER IS JAMES OPFER A WIRELESS COMMUNICATIONS CONSULTANT WHO USES RADIOMAIL TO ESCAPE THE OFFICE ALTOGETHER A FORMER U. S. AIR FORCE COLONEL WHO WORKED ON ELECTRONIC COMMUNICATIONS IN THE REAGAN WHITE HOUSE MR. OPFER RECEIVES THREE THOUSAND FIVE HUNDRED MESSAGES A MONTH AND SENDS ABOUT THAT MANY BY USING THE SERVICE TO PICK THE BRAINS OF HIS INFORMAL NETWORK OF EXPERTS HE SAYS HE CAN GET CLIENTS FAST ANSWERS FROM VIRTUALLY ANYWHERE PEOPLE PAY ME FOR BEING THERE IN NEAR REAL TIME MR. OPFER WRITES IN A RADIOMAIL NOTE THIS IS THE ULTIMATE IN WHAT I CALL THE EVOLUTION TO PEOPLE CENTRIC COMPUTING BECAUSE THE POWER TO SEND AND RECEIVE DATA FOLLOWS USERS RATHER THAN BEING TIED TO A PHONE LINE SOMEWHERE THE SERVICE HAS LIMITS RADIOMAIL MESSAGES CAN'T BE LONGER THAN EIGHT PAGES CUSTOMERS TYPICALLY USE IT FOR SHORT NOTES ARDIS AND RAM DON'T REACH MANY RURAL AREAS AND ARE RELATIVELY SLOW RAM FOR EXAMPLE HAS A THEORETICAL CAPACITY OF EIGHT THOUSAND BITS OF DATA A SECOND EQUAL TO ABOUT TWO HUNDRED WORDS BUT IT SAYS MOST MESSAGES MOVE AT ABOUT ONE THIRD THAT RATE AT THE SPEED OF OLDER TELEPHONE MODEMS ED FORMAN RADIOMAIL'S VICE PRESIDENT OF MARKETING NEVERTHELESS SAYS IT USUALLY DELIVERS ANY MESSAGE WITHIN TWENTY EIGHT SECONDS MOST HIGH TECH EXECUTIVES BEGAN THINKING ABOUT SUCH SERVICES IN THE NINETEEN EIGHTIES MR. GOODFELLOW'S VISIONS OF COMMUNICATING WITHOUT WIRES STARTED MUCH EARLIER WHEN HE READ A POPULAR SCIENCE ARTICLE ON CELLULAR PHONES THAT APPEARED IN NINETEEN SEVENTY TWO A DECADE BEFORE THAT TECHNOLOGY BEGAN TO SPREAD AT ABOUT THE SAME TIME HIS MOTHER AND STEPFATHER BOUGHT HIM A TELETYPE TERMINAL TO ENCOURAGE HIS NASCENT INTEREST IN COMPUTERS THEY ALSO HELPED HIM GET A COMPUTER ACCOUNT FOR NIGHTS AND WEEKENDS AT A SILICON VALLEY DATA SERVICES COMPANY AFTER A MANAGER NOTICED HIS WANDERINGS THROUGH ITS SYSTEMS THE COMPANY HIRED HIM FOR A SUMMER JOB IN NINETEEN SEVENTY THREE WHILE HE WAS THERE A CO WORKER GAVE HIM A DIAL UP NUMBER FOR ARPANET THE INTERNET'S PREDECESSOR SET UP BY THE PENTAGON'S ADVANCED RESEARCH PROJECTS AGENCY OR ARPA HE CONNECTED TO IT FROM HIS HOME TERMINAL MR. GOODFELLOW ALSO TAPPED INTO S. R. I. INTERNATIONAL A RESEARCH AND CONSULTING FIRM ORIGINALLY SPUN OFF FROM STANFORD UNIVERSITY TO PURSUE DEFENSE RESEARCH IN THOSE DAYS AN OUTSIDER LOGGING ON PROBABLY WAS JUST INTERESTED IN COMPUTERS HACKERS WEREN'T YET VILLAINS HE SEEMED LIKE A GOODHEARTED BRIGHT SOUL SAYS DAN LYNCH WHO WAS MANAGING S. R. I.'S MACHINES THEN HE GAVE MR. GOODFELLOW A PART TIME JOB BECAUSE HE WAS BREAKING INTO MY COMPUTERS MR. GOODFELLOW STARTED AT S. R. I. AS WHAT HE CALLS AN ASSISTANT SYSTEMS JANITOR RESPONSIBLE FOR BURPING AND DIAPERING ITS MAINFRAME COMPUTERS HE ALSO ACCELERATED HIS SELF EDUCATION PROCESS ON NETWORKS TAPPING INTO SCORES OF COMPUTERS AROUND THE COUNTRY AND LEARNING THEIR WORKINGS KNOWLEDGE HE WOULD USE TO MAKE RADIOMAIL WORK HE EVENTUALLY OBTAINED ACCOUNTS ON ABOUT EIGHTY PERCENT OF THE COMPUTERS ON ARPANET ONE FRIEND JOKED THAT HIS ELECTRONIC ADDRESS SHOULD BE QUOTE GEOFF AT EVERYWHERE QUOTE NO ONE KNEW GEOFF GOODFELLOW WAS A KID SAYS MR. LYNCH NOW CHAIRMAN OF INTEROP COMPANY A MOUNTAIN VIEW CALIFORNIA COMPANY THAT ORGANIZES COMPUTER NETWORKING CONFERENCES HE JUST TROLLED THE NET HE NEVER SLEPT WHEN HE FOUND SOMETHING THAT WAS GOOFY HE WOULD FIX IT OR FIND SOMEONE WHO COULD FIX IT I CALLED HIM THE ULTIMATE DEBUGGER MR. GOODFELLOW'S COMPUTING HABIT DIDN'T HELP HIS SCHOOLING IN NINETEEN SEVENTY FIVE HE DROPPED OUT OF HIGH SCHOOL AND TOOK A FULL TIME JOB AT S. R. I. HE ALSO LEARNED OF AN ARPA FUNDED PROJECT AT THE UNIVERSITY OF HAWAII THAT SET UP ONE OF THE FIRST CIVILIAN RADIO NETWORKS FOR TRANSMITTING DATA THE CONCEPT SO INTRIGUED MR. GOODFELLOW THAT HE TOOK A VACATION IN HAWAII LUGGING ALONG A SUITCASE SIZED COMMUNICATIONS TERMINAL THAT S. R. I. HELPED TO ASSEMBLE THAT WAS MY FIRST WIRELESS EXPERIENCE MR. GOODFELLOW SAYS DESPITE HIS LACK OF DIPLOMAS MR. GOODFELLOW WORKED HIS WAY UP INTO COMPUTER RESEARCH JOBS AT S. R. I. AND RECEIVED SECURITY CLEARANCES FOR GOVERNMENT CONTRACTS AND WITH HIS NETWORK KNOWLEDGE AND HACKER CONTACTS IT WAS NATURAL FOR MR. GOODFELLOW TO MOVE INTO COMPUTER SECURITY WE USED HIM QUITE A BIT TO FIND WHERE THESE HACKERS WERE BREAKING INTO OUR SYSTEM SAYS STEVAN MILUNOVIC S. R. I.'S DIRECTOR OF INFORMATION SYSTEMS AFTER TWELVE YEARS HE LEFT S. R. I. FOR THE ENTREPRENEURIAL WORLD A CELLULAR PHONE START UP FAILED BUT IN NINETEEN EIGHTY EIGHT HE BORROWED FIFTY THOUSAND DOLLARS FROM HIS PARENTS TO FORM WHAT WOULD BECOME RADIOMAIL THE COMPANY STARTED IN ONE ROOM OF HIS MENLO PARK HOUSE AND GRADUALLY PACKED THE DWELLING WITH TWENTY FIVE COMPUTERS FIFTY PHONE LINES AND RELATED PARAPHERNALIA RADIOMAIL FINALLY MOVED TO AN OFFICE PARK LAST YEAR BUT HAS TRIED TO KEEP A HOMEY ATMOSPHERE LUNCHES ARE MADE IN A COMPANY KITCHEN BY PRISCILLA BAIRD WHO HOLDS THE TITLE OF CONCIERGE AND TRIES TO MAKE SURE EMPLOYEES DON'T NEGLECT NUTRITION TO EXPAND THE COMPANY MR. GOODFELLOW BEGAN SEEKING OUTSIDE FUNDING IN NINETEEN NINETY TWO THOUGH HE EVENTUALLY RAISED THREE MILLION DOLLARS THE SEARCH WAS FRUSTRATING VENTURE CAPITALISTS HIS FIRST TARGETS QUOTE ARE REALLY NOT RISK TAKERS QUOTE MR. GOODFELLOW SAYS THEY ARE MORE CONSERVATIVE THAN BANKERS AFTER SOME EARLY REJECTIONS MR. GOODFELLOW BEEFED UP RADIOMAIL'S MANAGEMENT HE FIRED HIMSELF AS C. E. O. IN LATE NINETEEN NINETY TWO AND BROUGHT IN WILLIAM HIPP WHO HAD MANAGED ADVANCED TECHNOLOGY PROJECTS FOR THE AIR FORCE AND BEEN PRESIDENT OF DOWTY NETWORK SYSTEMS INCORPORATED A NOW DEFUNCT MAKER OF LOCAL AREA NETWORKS VENTURE CAPITALISTS STILL DIDN'T BITE THINGS ALSO DIDN'T GEL WITH A. T. AND T. WHICH AT ONE POINT LOOKED LIKE A POTENTIAL PARTNER BEFORE GOING ON TO START EASYLINK VENTURE CAPITALISTS SAY THE LIKELIHOOD OF SUCH COMPETITION WAS A KEY REASON THEY WERE LEERY OF RADIOMAIL ALONG WITH A SUSPICION THAT A BIG MARKET WAS A FEW YEARS AWAY GEOFF'S A GREAT GUY AND WHAT HE'S GOT IS PRETTY INTRIGUING SAYS MICHAEL MORITZ A PARTNER AT SEQUOIA CAPITAL IN MENLO PARK CALIFORNIA WHICH WAS APPROACHED BY RADIOMAIL BUT RIGHTLY OR WRONGLY WE THOUGHT FIVE YEARS FROM NOW HE WOULD BE THOUGHT OF AS A VERY IMAGINATIVE FOOTNOTE TO THE WIRELESS BUSINESS DESPITE THE NAYSAYERS MR. GOODFELLOW LAST APRIL ATTRACTED TWO MILLION DOLLARS FROM MOTOROLA AND ONE MILLION DOLLARS FROM TWO M. INVEST A DANISH INVESTMENT FIRM MOTOROLA SAID IT CONSIDERED THE COMPANY TWELVE TO EIGHTEEN MONTHS AHEAD OF THE REST OF THE INDUSTRY BUT FURTHER CHANGES WERE NEEDED AT RADIOMAIL MR. HIPP SAYS HE SPENT MOST OF HIS TIME NEGOTIATING IMPORTANT PARTNERSHIPS WHILE INTERNAL OPERATIONS SUFFERED ONE PROBLEM WAS DELAYS IN INTRODUCING NEW MESSAGING SOFTWARE INCLUDING A VERSION THAT WORKS WITH MICROSOFT CORPORATION'S POPULAR WINDOWS OPERATING SYSTEM IN JANUARY MR. HIPP RELINQUISHED THE PRESIDENT AND CHIEF EXECUTIVE POSITIONS OPTING TO START A SPINOFF COMPANY TO EXPLORE FOREIGN SALES OF THE COMPANY'S SERVICE WHILE RADIOMAIL SEARCHES FOR A NEW C. E. O. TWO VICE PRESIDENTS OLIVIA DILLAN AND ALAN BERINGSMITH ARE RUNNING DAY TO DAY OPERATIONS MR. GOODFELLOW REMAINS CHAIRMAN AND CHIEF TECHNICAL OFFICER RADIOMAIL ALSO CHANGED ITS MARKETING STRATEGY THE COMPANY HAD BILLED ITSELF AS SELLING WIRELESS ELECTRONIC MAIL IN DOING SO MR. GOODFELLOW SAYS IT HAS FOUND THAT USERS EXPECT TO BE ABLE TO DO EVERYTHING THEY CAN WITH A MODEM AND A LAPTOP COMPUTER INCLUDING ATTACHING SPREADSHEETS AND OTHER FILES TO MESSAGES MANY CUSTOMERS AREN'T PARTICULARLY INTERESTED IN IMMEDIACY THEY SIMPLY WANT A WIRELESS SYSTEM THAT ALLOWS THEM TO GET THEIR MESSAGES WHENEVER THEY LOG ON WHICH MIGHT BE HOURS AFTER A MESSAGE IS SENT SO RADIOMAIL NOW PLANS TO COMPARE ITS SERVICE TO ELECTRONIC POST IT NOTES MR. GOODFELLOW SAYS TO APPEAL TO PEOPLE WHO WANT TO GET SHORT MESSAGES INSTANTLY A SUBSCRIBER'S MESSAGES APPEAR ON A PORTABLE DEVICE AS SOON AS IT IS SWITCHED ON WITHOUT THE NEED TO LOG ON TO A REMOTE SYSTEM ANOTHER RADIOMAIL SELLING POINT IS THAT ITS PRICING DOESN'T VARY WITH THE NUMBER OF MESSAGES OR THE DISTANCE THEY TRAVEL FOR FREQUENT USERS THIS IS CHEAPER THAN PAYING EASYLINK'S PER MESSAGE CHARGES I DON'T HAVE TO WORRY ABOUT LONG DISTANCE CHARGES AT ALL SAYS MR. BOLLES OF NETWORK COMPUTING RADIOMAIL ALSO HAS A SLIGHTLY BROADER GEOGRAPHICAL REACH BECAUSE IT USES BOTH THE ARDIS AND RAM RADIO NETWORKS WHILE EASYLINK USES ONLY RAM AND MR. GOODFELLOW'S DETERMINATION TO USE ANY AND ALL WIRELESS CARRIERS MAY BOTH EXTEND RADIOMAIL'S REACH AND SAVE USERS MONEY METRICOM INCORPORATED BASED IN LOS GATOS CALIFORNIA IS SETTING UP A WIRELESS NETWORK EXPECTED TO OFFER UNLIMITED MESSAGING FOR AS LOW AS TWO DOLLARS AND NINETY FIVE CENTS A MONTH RADIOMAIL PLANS TO USE IT AND PASS THE SAVINGS ALONG MR. REITER OF MOBILE DATA REPORT SEES ONE GAP IN RADIOMAIL'S SERVICE AS MESSAGES PROLIFERATE SOME CUSTOMERS WILL WANT SOFTWARE THAT KNOWS TO SEND AN URGENT MESSAGE FROM THE PRESIDENT OF THE COMPANY BUT TO HOLD FOR LATER RETRIEVAL THINGS LIKE THE CAFETERIA LUNCH MENU RADIOMAIL EXPECTS TO OFFER SUCH FILTERING SOFTWARE BUT MR. REITER SAYS SOME COMPETITORS HAVE A HEAD START ON THE TECHNOLOGY RADIOMAIL HAS BEEN THE LEADER IN MESSAGING AND HAS DRAMATICALLY HELPED TO PUBLICIZE THIS INDUSTRY MR. REITER SAYS QUOTE THEY ARE A SMALL COMPANY THAT HAS MADE A MAJOR IMPACT BUT THEIR LEAD IS DECREASING MR. CLARK IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU MOODY'S INVESTORS SERVICE PLACED THE FINANCIAL STRENGTH RATINGS OF EQUITABLE LIFE ASSURANCE SOCIETY OF THE U. S. AND ITS EQUITABLE VARIABLE LIFE INSURANCE COMPANY UNIT UNDER REVIEW FOR A POSSIBLE UPGRADE THE RATINGS AGENCY SAID IT WILL FOCUS ON IMPROVING FINANCIAL FUNDAMENTALS AND A FAVORABLE OUTLOOK AT THE COMPANY'S INDIVIDUAL LIFE INSURANCE OPERATIONS EQUITABLE LIFE ASSURANCE SOCIETY OF THE U. S. A UNIT OF INSURANCE CONCERN EQUITABLE COMPANIES REPORTED STATUTORY ASSETS OF ABOUT FORTY SEVEN BILLION DOLLARS AS OF SEPTEMBER THIRTIETH EQUITABLE LIFE ASSURANCE SOCIETY OF THE U. S. AND EQUITABLE VARIABLE LIFE INSURANCE COMPANY HAVE A SINGLE A THREE FINANCIAL STRENGTH RATING VISITORS FROM JAPAN RUSSIA BRAZIL NORWAY AND OTHER FOREIGN LANDS HAVE BEEN STREAMING TO THIS REMOTE TOWN IN WEST TEXAS THE ATTRACTION A WIRELESS TELEPHONE TRANSMISSION SYSTEM INSTALLED BY G. T. E. CORPORATION A YEAR AGO TO PROVIDE QUITAQUE'S LOCAL PHONE SERVICE REPLACING AN OUTDATED MECHANICAL SWITCH SYSTEM THE NEW SYSTEM DOESN'T MAKE A CLEAN BREAK WITH THE PAST PHONES ARE STILL ATTACHED TO WALL JACKS SO CUSTOMERS CAN'T ROAM THROUGH TOWN AND STAY CONNECTED BUT QUITAQUE PRONOUNCED KIT A KWAY OFFERS A LOOK AT ONE FACET OF THE TELEPHONE'S WIRELESS FUTURE THE SYSTEM'S CENTRAL EQUIPMENT TRADES WIRES ON PHONE POLES FOR ANTENNAS AND TRANSMITTERS TECHNOLOGY THAT COULD BE CHEAPER FOR PHONE COMPANIES TO INSTALL IN SOME MARKETS QUITAQUE'S OLD SYSTEM INSTALLED TWO DECADES AGO WAS SLOW UNRELIABLE AND SUSCEPTIBLE TO STORM OUTAGES RESIDENTS SAY THE WIRELESS SYSTEM WHICH DIDN'T INCREASE THEIR MONTHLY FEES WORKS BETTER BUT STILL HAS SOME BUGS QUOTE YOUR VOICE REVERBERATES SO YOU CAN HEAR YOURSELF TALKING QUOTE SAYS BOB MYERS JUNIOR AND IT CAN TAKE FIVE TRIES TO GET A CALL THROUGH SOMETIMES IT JUST MAKES YOU ANGRY G. T. E. TECHNICIANS HAVE WORKED OUT SOME EARLY GLITCHES SUCH AS FAX MACHINE FAILURES AND SERVICE INTERRUPTIONS BUT TWO MAIN PROBLEMS REMAIN THE ECHO MR. MYERS MENTIONED AND SNAGS IN DATA TRANSMISSION OVER SOME TYPES OF MODEMS WE'VE MADE IMPROVEMENTS IN BOTH PROBLEMS BUT I WOULDN'T SAY THEY'VE BEEN COMPLETELY SOLVED SAYS JAMES WAKEFIELD A G. T. E. SUPERVISOR QUITAQUE BECAME A HIGH TECH PROVING GROUND FOR TWO MAIN REASONS G. T. E. WAS PLANNING TO REPLACE ITS AGING PHONE SYSTEM ANYWAY AND ITS VALLEY SETTING OFFERED AN IDEAL SPOT TO TEST THE WIRELESS TECHNOLOGY WHICH DEPENDS ON A MAIN ANTENNA TO TRANSMIT CALLS THE WIRELESS SYSTEM IS AN AMALGAMATION OF THINGS NEW DIGITAL TRANSMITTERS THAT COMPRESS SIGNALS AND OLD THE BUSINESS BAND F. M. RADIO FREQUENCIES USED FOR YEARS BY TAXI DISPATCHERS IN QUITAQUE EACH HOME IS WIRED TO ONE OF TWENTY CLUSTER SITES IN BACK ALLEYS THE SITES HAVE ONE OR TWO TWO FOOT LONG ANTENNAS THAT BROADCAST AND RECEIVE CALLS TO AND FROM A THREE HUNDRED FOOT TOWER IN NEARBY TURKEY TEXAS THE HIGHEST POINT IN THE AREA EACH SITE ALSO HAS A FIVE FOOT TALL CABINET HOLDING TWENTY FOUR DIFFERENT RECEIVING AND BROADCASTING BOXES EACH ASSIGNED TO ONE PHONE LINE IN OUTLYING AREAS EACH HOUSE HAS ITS OWN BOX AND AN ANTENNA THAT TALKS TO THE TURKEY TOWER SOME OF THE HOMES WERE TOO REMOTE TO HAVE PHONE SERVICE PREVIOUSLY THE BOXES MADE BY INTERDIGITAL COMMUNICATIONS OF KING OF PRUSSIA PENNSYLVANIA CONVERT OUTGOING ANALOG PHONE SIGNALS TO DIGITAL AND THEN COMPRESS THE DATA THEY ALSO AMPLIFY SIGNALS BEFORE BROADCASTING THEM TO THE TOWER THROUGH AN ANTENNA OVER ONE OF TWELVE FREQUENCIES G. T. E. USES IN QUITAQUE EACH CAN CARRY FOUR CONVERSATIONS FOR INCOMING TRANSMISSION THE BOXES REVERSE THE PROCESS TRANSLATING DIGITAL SIGNALS INTO ANALOG SECURITY IS ASSURED G. T. E. SAYS BECAUSE EACH BOX HAS ITS OWN SECURITY CODE AND ANYONE TUNED TO THE FREQUENCY WOULD PICK UP ONLY AN INDECIPHERABLE STREAM OF NUMBERS SIGNAL COMPRESSION IS NECESSARY TO CONSERVE SPACE ON PRECIOUS RADIO FREQUENCIES BUT IT ALSO MEANS VOICE INFLECTIONS ARE SOMETIMES LOST G. T. E. SAYS DATA TRANSMISSION TOO IS HAMPERED BECAUSE THE SYSTEM CAN'T HANDLE INFORMATION AS FAST AS FAX MACHINES AND COMPUTERS NORMALLY SEND IT WARREN MERRELL OWNER OF THE VENTURE FOODS GROCERY STORE HAD TROUBLE SENDING ORDERS TO HIS DISTRIBUTOR BY COMPUTER UNTIL G. T. E. SWITCHED HIS MODEM BACK TO A WIRED PHONE CIRCUIT DESPITE THE PROBLEMS G. T. E. HAS PLACED THE WIRELESS TECHNOLOGY IN ITS PORTFOLIO OF UPGRADE OPTIONS QUOTE TAKING IT TO OTHER COMMUNITIES IS A POSSIBILITY QUOTE SAYS LARRY BROWN GROUP MANAGER OF TRANSMISSION STANDARDIZATION WE WILL GO FORWARD WITH MORE APPLICATIONS IF THE TECHNOLOGICAL AND ECONOMIC PARAMETERS WORK OUT PROPONENTS OF WIRELESS TECHNOLOGY POINT TO COST AS ITS BIG EDGE IF WE WERE TO START OVER FROM SCRATCH WE WOULD USE A LOT OF WIRELESS SAYS PETER HUBER A SENIOR FELLOW AT THE MANHATTAN INSTITUTE A NEW YORK THINK TANK WIRELESS SYSTEMS CAN BE INSTALLED FOR FIVE HUNDRED DOLLARS TO SIX HUNDRED DOLLARS A CUSTOMER HE SAYS THAT CONTRASTS WITH AS MUCH AS TWO THOUSAND FIVE HUNDRED DOLLARS A CUSTOMER FOR LAND LINE SYSTEMS AND ABOUT ONE THOUSAND DOLLARS A CUSTOMER FOR CELLULAR SYSTEMS WHICH ESSENTIALLY PUT THE RADIO IN THE PHONE RATHER THAN IN THE ALLEY AND UNTETHER CUSTOMERS TO MAKE AND TAKE CALLS ON THE GO BUT OTHERS ARGUE THAT THE FUTURE OF LOCAL PHONE SERVICE IS IN FIBER OPTIC CABLES OR THE COAXIAL CABLES OF CABLE TELEVISION SYSTEMS IN URBAN AREAS LAYING CABLE OR WIRE TO CUSTOMERS IS USUALLY COST EFFECTIVE AND RADIO FREQUENCIES ARE MORE CLUTTERED LEADING MANY ANALYSTS TO PREDICT ONLY A NARROW MARKET FOR THE TYPE OF SYSTEM G. T. E. IS TESTING IN QUITAQUE I THINK WE'LL SEE LIMITED APPLICATION IN AREAS THAT ARE DIFFICULT OR UNECONOMIC TO REACH SAYS LARRY VANSTON PRESIDENT OF TECHNOLOGY FUTURES A FORECASTING FIRM IN AUSTIN TEXAS STILL QUITAQUE'S SYSTEM HAS SPARKED ENOUGH INTEREST FOR O. R. STARK JUNIOR PRESIDENT OF THE TOWN'S FIRST NATIONAL BANK TO GET SOME PROBING CALLS OFFICIALS FROM OTHER PHONE COMPANIES CELLULAR COMPANIES AND SOME THAT DON'T EVEN TELL YOU WHO THEY ARE CALL INQUIRING ABOUT THE WIRELESS SYSTEM HE SAYS ARE YOU SATISFIED HOW'S IT GOING THEY HAVEN'T CALLED G. T. E. BUT THEY SURE TALK TO PEOPLE HERE QUOTE MR. MCCARTNEY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S DALLAS BUREAU DO CELLULAR TELEPHONES CAUSE BRAIN CANCER FOR A WHILE LAST YEAR THAT WAS THE WIRELESS QUESTION THAT EVERYBODY WANTED ANSWERED THE FUROR HAS DIED DOWN SOMEWHAT BUT THE ISSUE HASN'T GONE AWAY AND IT WON'T FOR A SIMPLE REASON VERY FEW STUDIES HAVE LOOKED AT THE BIOLOGICAL EFFECTS OF CELLULAR FREQUENCY RADIO WAVES THE UNCERTAINTY CONTINUES TO CREATE MUCH CONCERN AMONG CONSUMERS IT ALSO HAS PROMPTED THE INDUSTRY TO LAUNCH A THREE TO FIVE YEAR RESEARCH EFFORT THAT COULD COST UP TO TWENTY FIVE MILLION DOLLARS AND IT HAS THREATENED TO BECOME A LEGAL NIGHTMARE FOR SEVERAL OF THE LARGEST CELLULAR PHONE MAKERS THE MOST RECENT LAWSUIT WAS FILED IN DECEMBER BY ROBERT KANE A MOTOROLA INCORPORATED ENGINEER IN SCOTTSDALE ARIZONA MR. KANE SUED HIS EMPLOYER IN COOK COUNTY COURT CHICAGO ALLEGING THAT HIS BRAIN CANCER WAS CAUSED BY EXPERIMENTS IN WHICH HE ACTED AS A GUINEA PIG TO TEST A NEW MOTOROLA CELLULAR PHONE ANTENNA MOTOROLA BASED IN SCHAUMBURG ILLINOIS DENIES THE ALLEGATIONS IN ANOTHER HIGH PROFILE CASE FILED IN JANUARY NINETEEN NINETY THREE A SAINT PETERSBURG FLORIDA MAN SUED N. E. C. CORPORATION OF AMERICA A SUBSIDIARY OF N. E. C. CORPORATION OF JAPAN CLAIMING THAT HIS WIFE GOT BRAIN CANCER FROM HER N. E. C. CELLULAR PHONE THE CASE FILED IN PINELLAS COUNTY FLORIDA CIRCUIT COURT IS AWAITING TRIAL N. E. C. HAS MAINTAINED THAT ITS PHONES ARE SAFE WHEN FIRST CONFRONTED WITH THE LAWSUITS AND THE RESULTING PUBLICITY THE CELLULAR INDUSTRY MOUNTED A PUBLIC RELATIONS OFFENSIVE CLAIMING AT NEWS CONFERENCES AND IN NEWS RELEASES THAT THERE WERE THOUSANDS OF STUDIES GOING BACK FORTY YEARS THAT PROVED THE SAFETY OF CELLULAR PHONES SINCE THEN HOWEVER THE INDUSTRY HAS LARGELY PUT FORTH STUDIES THAT LOOKED AT THE EFFECTS OF RADIO WAVES OUTSIDE THE CELLULAR FREQUENCY OR AT EXPOSURE LEVELS THAT ARE DIFFERENT FROM THOSE EXPERIENCED BY CELLULAR PHONE USERS QUOTE THE INDUSTRY HASN'T TOLD THE PUBLIC THE FULL STORY ABOUT HOW THERE HAS BEEN VERY LITTLE RESEARCH ON BIOLOGICAL EFFECTS AT LOW LEVEL EXPOSURES SIMILAR TO THOSE OF HANDHELD PHONES QUOTE SAYS LOUIS SLESIN EDITOR OF MICROWAVE NEWS A NEW YORK NEWSLETTER AND A FREQUENT CRITIC OF THE INDUSTRY'S HANDLING OF THE SAFETY ISSUE MR. SLESIN AND OTHER CRITICS ALSO ACCUSE THE INDUSTRY AND ITS TRADE ASSOCIATION THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION IN WASHINGTON D. C. OF EXAGGERATING ANY POSITIVE RESEARCH THAT IT SAYS SUPPORTS ITS SAFETY CLAIMS THE CTIA'S PUBLIC RELATIONS CHIEF IS RON NESSEN THE FORMER WHITE HOUSE SPOKESMAN UNDER PRESIDENT FORD IN AUGUST FOR EXAMPLE AN OFFICIAL FOR THE FOOD AND DRUG ADMINISTRATION REBUKED THE INDUSTRY AND THE CTIA FOR SUGGESTING THAT ENOUGH SCIENTIFIC EVIDENCE EXISTS TO SUPPORT THE CONCLUSION THAT CELLULAR PHONES ARE SAFE THEN IN DECEMBER THE INDUSTRY PUBLICIZED RESEARCH BEING DONE BY OM GANDHI CHAIRMAN OF THE UNIVERSITY OF UTAH'S DEPARTMENT OF ELECTRICAL ENGINEERING THE RESEARCH OUTLINED VAGUELY IN A NEWS RELEASE FROM THE UNIVERSITY HAD FOUND THAT THE EXPOSURE TO RADIATION FROM CELLULAR PHONES IS ONE FOURTH TO ONE FIFTH OF THE LEVELS CONSIDERED SAFE BY THE AMERICAN NATIONAL STANDARDS INSTITUTE AND THE INSTITUTE OF ELECTRONIC AND ELECTRICAL ENGINEERS MOREOVER THE NEWS RELEASE GAVE THE IMPRESSION THAT ITS CONCLUSION THAT CELLULAR PHONES ARE SAFE HAD THE BACKING OF THE FEDERAL GOVERNMENT NOTING THAT THE RESEARCH WAS FINANCED BY A DIVISION OF THE NATIONAL INSTITUTES OF HEALTH THE GOVERNMENT HOWEVER BEGGED TO DIFFER IN A STATEMENT THE N. I. H.'S NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES SAID DOCTOR GANDHI'S RESEARCH FOR NIEHS DOES NOT INCLUDE STUDIES TO DETERMINE THE SAFETY OF ANY PRODUCT IT ADDED NO STUDIES ASSESSING BIOLOGICAL EFFECTS ARE ASSOCIATED WITH DOCTOR GANDHI'S GRANT DOCTOR GANDHI'S CELLULAR RESEARCH IS ALSO BEING FUNDED IN PART BY MCCAW CELLULAR COMMUNICATIONS INCORPORATED KIRKLAND WASHINGTON THE NATION'S LARGEST PROVIDER OF CELLULAR PHONE SERVICE WHICH IS SET TO MERGE WITH AMERICAN TELEPHONE AND TELEGRAPH COMPANY UNTIL THE CELLULAR PHONE SCARE STARTED MOST OF THE DEBATE OVER ELECTROMAGNETIC FIELD EFFECTS FOCUSED ON THE LOW FREQUENCY RADIATION EMITTED BY ELECTRIC MOTORS AND HIGH VOLTAGE POWER TRANSMISSION LINES POPULATION STUDIES IN THE U. S. AND MORE RECENTLY IN SWEDEN HINT THAT CANCER MISCARRIAGES AND OTHER ILL EFFECTS ARE MORE COMMON AMONG PEOPLE EXPOSED TO THESE LOW FREQUENCY FIELDS NOW SEVERAL LAB EXPERIMENTS INDICATE THAT RADIO WAVES THAT OPERATE AT HIGH FREQUENCIES AND AT LOW POWER AS IS THE CASE WITH CELLULAR PHONES CAN CAUSE LEAKAGE THROUGH THE BLOOD BRAIN BARRIER AS WELL AS CANCEROUS CELL GROWTH AND A BREAKDOWN OF THE CALCIUM THAT COATS CELLS AND ALLOWS SIGNALS TO BE PASSED BETWEEN CELLS ONE OF THOSE EXPERIMENTS WAS CONDUCTED BY STEPHEN CLEARY A PROFESSOR OF PHYSICS AND BIOPHYSICS AT THE MEDICAL COLLEGE OF VIRGINIA HIS EXPERIMENTS IRRADIATED TWO DIFFERENT TYPES OF CELLS NORMAL HUMAN LYMPHOCYTES AND GLIOMA CANCER CELLS OF THE BRAIN DOCTOR CLEARY TUNED HIS RADIO EQUIPMENT TO FREQUENCIES OF TWENTY SEVEN MEGAHERTZ AT WHICH INDUSTRIAL HEAT SEALING EQUIPMENT OPERATES AND TWO POINT FOUR FIVE BILLION CYCLES A SECOND AT WHICH MICROWAVE OVENS OPERATE IN BOTH CASES THE CELLS SHOWED ABNORMAL GROWTH AFTER TWO HOURS OF EXPOSURE AND WERE STILL GROWING ABNORMALLY THREE TO FIVE DAYS AFTER THE EQUIPMENT HAD BEEN TURNED OFF DOCTOR CLEARY DIDN'T STUDY THE EFFECTS FROM CELLULAR PHONE FREQUENCIES WHICH ARE TYPICALLY IN THE EIGHT HUNDRED TO NINE HUNDRED MEGAHERTZ RANGE BORJE WAMBLAD A RADIO SCIENTIST AT SWEDEN'S TELEFON A. B. LM ERICSSON ONE OF THE WORLD'S LARGEST SUPPLIERS OF CELLULAR RADIO EQUIPMENT HAS SAID THAT SCIENTISTS ARE CONCERNED THAT THE HUMAN HEAD MAY BE SOME SORT OF LENS THAT CONCENTRATES OR MAGNIFIES THE RADIATION EMITTED BY THE PHONE TO THE BRAIN ERICSSON AND TELEVERKERT RADIO THE STATE OWNED CARRIER PAID MEDICAL RESEARCHERS AT UNIVERSITY HOSPITAL IN LUND SWEDEN TO TEST THE BIOPHYSICAL EFFECTS OF RADIO WAVES ON RATS THE SWEDISH SCIENTISTS EXPOSED THE RATS TO CONTINUOUS AND PULSED WAVES IN THE FREQUENCY JUST ABOVE THAT USED BY CELLULAR PHONES THE RESULT THEY WERE ABLE TO PENETRATE THE BLOOD BRAIN BARRIER WHICH IS ACTUALLY A CHEMICAL THAT SURROUNDS THE BLOOD VESSELS AND PROTECTS BRAIN TISSUE FROM HARMFUL TOXINS AT THE PETTIS VETERANS ADMINISTRATION MEDICAL CENTER IN LOMA LINDA CALIFORNIA W. ROSS ADEY ASSOCIATE CHIEF OF THE RESEARCH DEPARTMENT CONDUCTED EXPERIMENTS THAT SHOWED RADIO WAVES AT ABOUT THE SAME POWER AS THAT EMITTED BY TODAY'S CELLULAR PHONES CAN BREAK DOWN THE BINDING OF CALCIUM TO THE SURFACE OF CELLS CALCIUM IS ESSENTIAL FOR VIRTUALLY ALL LIVING PROCESSES INCLUDING ENZYME ACTION AND CELL GROWTH DOCTOR ADEY SAYS HE SHOWED THAT A BREAKDOWN OCCURRED AT ONE HUNDRED FORTY FIVE MEGAHERTZ THE FREQUENCY AT WHICH HAM RADIOS OPERATE AND AT FOUR HUNDRED FIFTY MEGAHERTZ THE FREQUENCY USED BY SECURITY GUARDS' RADIO PHONES EUROPEAN CELLULAR SYSTEMS CURRENTLY OPERATE AT FOUR HUNDRED FIFTY MEGAHERTZ WE NEED TO KNOW THE CUMULATIVE DOSE OF RADIO FREQUENCIES DOCTOR ADEY SAYS STILL UNDER WAY ARE TESTS ANNOUNCED IN DECEMBER BY THE INDUSTRY BACKED GROUP INCLUDING A LARGE SCALE EPIDEMIOLOGICAL STUDY TO ASSESS THE IMPACT OF EXPOSURE TO RADIO FREQUENCY WAVES SPECIFICALLY ON PORTABLE CELLULAR PHONE USERS IT IS BEING DIRECTED BY KENNETH ROGHMAN AND NANCY DREYER OF EPIDEMIOLOGY RESOURCES INCORPORATED A RESEARCH OUTFIT IN NEWTON LOWER FALLS MASSACHUSETTS THE INDUSTRY HAS ALSO ASKED FOR PROPOSALS ON STUDIES THAT WILL EXAMINE POSSIBLE GENETIC EFFECTS OF EXPOSURE TO CELLULARPHONE FREQUENCIES PEER REVIEW OF ALL OF THE INDUSTRY BACKED STUDIES WILL BE COORDINATED THROUGH HARVARD UNIVERSITY'S CENTER FOR RISK ANALYSIS SAYS GEORGE L. CARLO AN EPIDEMIOLOGIST AT GEORGETOWN UNIVERSITY IN WASHINGTON D. C. AND CHAIRMAN OF THE GROUP ALTHOUGH CRITICS QUESTION THE CREDIBILITY OF STUDIES FINANCED BY AN INDUSTRY WHOSE PRINCIPAL PRODUCT IS BEING SCRUTINIZED DOCTOR CARLO INSISTS THAT THEY WILL BE IMPARTIAL WE HAVE ACTIVELY SOUGHT THE INPUT OF SCIENTISTS FROM ACADEMIA INDUSTRY GOVERNMENT AND THE PRIVATE SECTOR WHO ARE EXPERIENCED IN THIS AREA OF RESEARCH HE SAYS MEANWHILE THE CELLULAR PHONE BOOM IS INTENSIFYING CONCERNS ABOUT THE INDUSTRY'S HIGH POWERED TRANSMISSION TOWERS PRESSURE IS MOUNTING ON POLITICIANS FROM COMMUNITIES ACROSS THE COUNTRY TO RESTRICT THE INSTALLATION OF CELLULAR PHONE TRANSMISSION TOWERS ESPECIALLY NEAR SCHOOLYARDS AND HOMES THE DEBATE WILL GET MORE HEATED THANKS TO PERSONAL COMMUNICATIONS SERVICES THE NEXT GENERATION OF WIRELESS TECHNOLOGY WHICH CALL FOR THE CONSTRUCTION OF TENS OF THOUSANDS OF TRANSMISSION UNITS ANYWHERE PEOPLE STROLL OR NEED TO USE A PHONE COMPLAINS MR. SLESIN THE NEWSLETTER WRITER QUOTE THE PHONE INDUSTRY IS TALKING ABOUT STARTING A NEW KIND OF PORTABLE PHONE SERVICE INSTALLING YET ANOTHER SOURCE OF RADIO FREQUENCY EMISSIONS WITHOUT SETTLING THE HEALTH ISSUE ADEQUATELY QUOTE MR. KELLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU DUTCH CHEMICAL GROUP AKZO N. V. SAID YESTERDAY IT HAS BEEN TENDERED NINETY NINE PERCENT OF THE SHARES OF ITS SWEDISH MERGER PARTNER NOBEL INDUSTRIER A. B. AKZO SAID ITS TENDER OFFER FOR NOBEL'S SHARES HAS NOW BECOME UNCONDITIONAL AND AKZO IS UNDERTAKING MEASURES IN SWEDEN TO WIN THE REMAINING ONE PERCENT OF UNTENDERED NOBEL STOCK AKZO SAID THAT UNTIL FURTHER NOTICE IT WILL BUY REMAINING NOBEL COMMON AT THE EQUIVALENT OF TWENTY SIX POINT FIVE OH SWEDISH KRONOR THREE DOLLARS AND THIRTY ONE CENTS CASH A SHARE THE SAME PRICE AS THE TENDER OFFER BUT IT WILL NO LONGER OFFER THE CHOICE OF RECEIVING AKZO SHARES IN LIEU OF CASH MANVILLE CORPORATION POSTED A FOURTH QUARTER LOSS BLAMING PROBLEMS AT ITS PAPER PRODUCTS UNIT THAT AREN'T EXPECTED TO GO AWAY ANYTIME SOON THE LOSS TOTALED EIGHT MILLION DOLLARS OR ELEVEN CENTS A SHARE COMPARED WITH NET INCOME OF FOURTEEN POINT EIGHT MILLION DOLLARS OR EIGHT CENTS A SHARE A YEAR EARLIER SALES ROSE ONE POINT SEVEN PERCENT TO FIVE HUNDRED EIGHTY TWO POINT EIGHT MILLION DOLLARS FROM FIVE HUNDRED SEVENTY THREE MILLION DOLLARS EXCLUDING A SERIES OF UNUSUAL ITEMS MANVILLE IN DENVER WOULD HAVE HAD A PROFIT IN THE LATEST PERIOD OF ABOUT SEVEN POINT SEVEN MILLION DOLLARS OR TWO CENTS A SHARE COMPARED WITH YEAR EARLIER PROFIT OF ABOUT ONE POINT THREE MILLION DOLLARS OR A PER SHARE LOSS OF THREE CENTS AFTER ALLOWING FOR PREFERRED STOCK DIVIDENDS MANVILLE SAID OPERATING PROFIT BEFORE UNUSUAL ITEMS AT ITS RIVERWOOD INTERNATIONAL CORPORATION PAPER PRODUCTS UNIT FELL FORTY NINE PERCENT DUE IN PART TO WEAK LINERBOARD PRICES RIVERWOOD IS EIGHTY ONE PERCENT OWNED BY MANVILLE SAID IT EXPECTS NINETEEN NINETY FOUR TO BE DIFFICULT AS WELL THE RESULTS WERE RELEASED AFTER THE STOCK MARKET CLOSED FIRST TO ARRIVE ON THE EUROPEAN SCENE WERE APPLE COMPAQ AND THE OTHER BIG U. S. PERSONAL COMPUTER MANUFACTURERS THEN CAME THE BIG P. C. SOFTWARE HOUSES SUCH AS LOTUS AND BORLAND NOW COMES THE LATEST WAVE OF U. S. P. C. TECHNOLOGY INTO THE EUROPEAN MARKET THE NETWORKING FIRMS FROM MOSCOW TO DUBLIN MOST OF THE MAJOR U. S. COMPANIES THAT SPECIALIZE IN GADGETS AND SOFTWARE TO CONNECT P. C.S HAVE BEEN RUSHING TO EXPAND THEIR EUROPEAN OPERATIONS THE BIGGEST NOVELL INCORPORATED BASED IN PROVO UTAH HAS DOUBLED ITS EUROPEAN STAFF IN THE PAST TWO YEARS TO FIVE HUNDRED ANOTHER CISCO SYSTEMS INCORPORATED MENLO PARK CALIFORNIA IS OPENING SALES OFFICES AND LINING UP BIG EUROPEAN PHONE COMPANIES AS ALLIES A THIRD BANYAN SYSTEMS INCORPORATED WESTBORO MASSACHUSETTS HAS ANNOUNCED THAT HEWLETT PACKARD COMPANY WILL DISTRIBUTE SOME OF ITS SOFTWARE IN EUROPE QUOTE THERE IS GROWTH HERE IN EUROPE FOR OUR PRODUCT AREA QUOTE SAYS GREGORY FALLON VICE PRESIDENT IN CHARGE OF NOVELL'S EUROPEAN OPERATIONS INDEED AFTER YEARS OF LAGGING BEHIND THE U. S. MARKET IN CONNECTING P. C.S THE EUROPEAN MARKET IS COMING ALIVE SOMETIME THIS YEAR MARKET RESEARCH FIRM DATAQUEST INCORPORATED EXPECTS THE NUMBER OF P. C.S LINKED TOGETHER IN NETWORKS RATHER THAN WORKING BY THEMSELVES TO PASS THE FIFTY PERCENT MARK LAST YEAR IT SAYS FORTY FIVE PERCENT OF P. C.S IN EUROPE WERE INTERCONNECTED COMPARED WITH SIXTY PERCENT IN THE U. S. AND ELEVEN PERCENT IN JAPAN IT ESTIMATES THAT EUROPEANS LAST YEAR BOUGHT FOUR POINT FIVE BILLION DOLLARS OF SOFTWARE ADAPTOR BOARDS AND OTHER COMPONENTS TO CONNECT P. C.S OVER THE LAST FEW YEARS WE'VE REALLY SEEN AN EXPLOSIVE GROWTH OF SOFTWARE FOR CONNECTIVITY AS U. S. VENDORS HAVE FOCUSED ON THE EUROPEAN MARKET SAYS DATAQUEST ANALYST DAVID TAYLOR THAT DOESN'T MEAN EUROPE'S AN EASY TARGET NOVELL LAST YEAR HIT A ROCKY PATCH WITH ITS EUROPEAN REVENUE RISING JUST FOUR PERCENT TO THREE HUNDRED TWENTY FIVE MILLION DOLLARS PARTLY BECAUSE OF THE RECESSION IN GERMANY BUT MR. FALLON SAYS HE EXPECTS NOVELL TO GET BACK TO GROWTH RATES SIMILAR TO THE PAST OVER THE LONG HAUL MEANWHILE SMALLER NICHE PLAYERS SUCH AS CISCO HAVE BEEN DOUBLING THEIR EUROPEAN REVENUES DESPITE RECESSION AND EVEN MICROSOFT CORPORATION IN REDMOND WASHINGTON THE DOMINANT FORCE IN P. C. SOFTWARE WORLD WIDE BUT A NEWCOMER TO NETWORKING PRODUCTS IS FINDING THE GRASS GREENER IN EUROPE WHILE DECLINING TO DISCLOSE ANY SALES FIGURES CAMERON MYHRVOLD A MICROSOFT MARKETING MANAGER IN EUROPE SAYS HIS COMPANY'S NETWORK SOFTWARE SALES ARE DOING A LITTLE BETTER IN EUROPE THAN WE HAVE DONE IN THE STATES A FEW FACTORS ARE FUELING THE AMERICAN OPTIMISM FIRST JUST AS HAPPENED IN THE U. S. AND CANADA A FEW YEARS EARLIER THE MORE P. C.S ARE USED IN EUROPE THE MORE PEOPLE WANT SPECIALIZED HELP INTERCONNECTING THEM DEMAND RISES FAST SECOND ONCE HERE THE U. S. HOUSES FIND LITTLE LOCAL COMPETITION MOST OF EUROPE'S MAJOR SOFTWARE FIRMS ARE STILL FOCUSING ON BIG CLIENTS OR BIG COMPUTERS IGNORING SMALL BUSINESS CUSTOMERS AND PACKAGED P. C. NETWORK SOFTWARE THIRD AS WITH MOST COMPUTER PRODUCTS NETWORK SOFTWARE PRICES HERE ARE TEN PERCENT TO THIRTY PERCENT HIGHER THAN IN THE U. S. ALLOWING FOR FATTER PROFITS OF COURSE THE U. S. FIRMS BRING WITH THEM THE SAME RIVALRIES THEY HAVE BACK HOME AS IN THE U. S. NOVELL IS DOMINANT WITH ABOUT SIXTY PERCENT OF THE EUROPEAN MARKET FOR NETWORK OPERATING SYSTEMS ACCORDING TO DATAQUEST MICROSOFT IS GAINING WITH ABOUT TEN PERCENT BUT THERE ARE BIG DIFFERENCES BETWEEN U. S. AND EUROPEAN P. C. NETWORKS NEWER EUROPEAN NETWORKS TEND TO BE USED FOR SIMPLE TASKS LIKE CONNECTING SEVERAL P. C.S TO ONE PRINTER OR JUST SWAPPING FILES SAYS GERARD GABELLA MANAGING DIRECTOR IN EUROPE OF THE SOFTWARE PUBLISHERS ASSOCIATION A U. S. TRADE GROUP FOR EXAMPLE IN THE FIRST NINE MONTHS OF NINETEEN NINETY THREE THE MOST RECENT PERIOD REPORTED THE GROUP COUNTED LESS THAN TWENTY MILLION DOLLARS OF GROUPWARE SOLD IN EUROPE A THIRD THE U. S. FIGURE GROUPWARE IS SOFTWARE THAT HELPS SEVERAL PEOPLE ON A P. C. NETWORK WORK TOGETHER ON THE SAME PROJECTS THERE ARE ALSO DIFFERENCES FROM ONE EUROPEAN COUNTRY TO THE NEXT FRENCH COMPANIES WITH THEIR STRICT MANAGEMENT HIERARCHIES FOR EXAMPLE OFTEN TREAT P. C. NETWORKS WITH CAUTION A FRENCH MANAGER IS A MANAGER BECAUSE HE KNOWS MORE THAN HIS PEOPLE AND HE ISN'T GOING TO SHARE ALL THE INFORMATION HE HAS WITH THEM BY BUYING LOTS OF DEMOCRATIC GROUPWARE FOR THEIR P. C.S SAYS MR. GABELLA HIMSELF A FRENCHMAN BUT EASTERN EUROPEANS ARE SUDDENLY WILD ABOUT NETWORKED P. C.S HAVING FEWER COMPUTERS AND LESS CASH TO SPEND ON MAINFRAMES MANY EASTERN EUROPEAN COMPANIES ARE TURNING TO P. C. NETWORKS AS A CHEAPER WAY TO COMPUTERIZE QUICKLY TO CAPITALIZE NOVELL IS RAPIDLY LINING UP NEW DEALERS AND DISTRIBUTORS IN EASTERN EUROPE AND GETTING AN ENTHUSIASTIC GREETING THE EASTERN EUROPEANS SAYS MR. FALLON QUOTE UNDERSTAND THE TECHNOLOGY QUITE WELL QUOTE GERMANY'S HOECHST A. G. CHEMICALS COMPANY IS CONSIDERING SPINNING OFF ITS FIBERS DIVISION ACCORDING TO A NEWSPAPER REPORT A HOECHST SPOKESMAN WOULDN'T IMMEDIATELY COMMENT ON THE REPORT IN GERMANY'S HANDELSBLATT FINANCIAL NEWSPAPER SUCH A MOVE WOULD ECHO A PREVIOUSLY ANNOUNCED PLAN BY COMPETITOR BAYER A. G. DESCRIBED AS A COST CUTTING MOVE THURSDAY'S REPORTS REITERATE A CONFIRMATION OF THE FIBERS UNIT DISCUSSIONS LATE IN JANUARY BY HOECHST'S FINANCE CHIEF JUERGEN DORMANN WHO BECOMES CHAIRMAN APRIL TWENTY SIXTH AT THAT TIME A HOECHST SPOKESWOMAN SAID THE SPINOFF DISCUSSION WAS FAR FROM ANY DECISION ACCORDING TO NEWSPAPER REPORTS HOECHST WORKERS' COUNCIL CHAIRMAN ROLF BRAND SAID WEDNESDAY A DECISION WASN'T LIKELY UNTIL NEAR YEAR'S END THE HOECHST SPOKESWOMAN HAS SAID A SPINOFF WOULD HAVE WAGE POLICY IMPLICATIONS THAT WOULD LOWER PERSONNEL COSTS ACCORDING TO REPORTS HOECHST DENIED IT INTENDED TO CUT WAGES BUT SAID ITS PLAN WOULD CUT COSTS RETAILERS PUZZLED ABOUT WHY WOMEN AREN'T BUYING AS MANY CLOTHES NEED LOOK NO FURTHER THAN SUE BUSBY'S CLOSET ON THE TOP SHELF OF MRS. BUSBY'S QUOTE AUXILIARY QUOTE CLOSET IN HER SUBURBAN CHICAGO HOME WHERE SHE KEEPS CLOTHES SHE DOESN'T WEAR EVERYDAY ARE DUSTY BOXES OF FORMER HAD TO HAVE SHOES LIKE CHEROKEE SANDALS WITH WEDGE HEELS AND WHITE SHOES THAT LACE UP THE ANKLE LABELED ON THE BOX QUOTE GOODCUTE QUOTE WHICH MEANS QUOTE DON'T THROW AWAY QUOTE YOU NEVER KNOW WHEN THEY MIGHT COME BACK SAYS MRS. BUSBY THIRTY THREE YEARS OLD A HUMAN RESOURCES MANAGER AT LEAST ONE HUNDRED BELTS HANG LIKE A TECHNICOLOR WATERFALL IN THE AUXILIARY CLOSET ALTHOUGH SHE DID JUST THROW AWAY ALL BUT ONE OF THE ULTRA THIN ONES SHE KEPT THE BLACK ONE BECAUSE YOU NEVER KNOW DRAPED WITH HER SCARVES ARE ROSEBUD TIES LEFT OVER FROM THE POWER SUIT ERA SHE KEEPS A GLORIA VANDERBILT JEANS SKIRT AND OTHER TRENDY ITEMS OF THE PAST IN A BOX ON THE FLOOR MRS. BUSBY LOVES NEW CLOTHES BUT SHE ALREADY HAS PLENTY OF THEM AND THE OLDER SHE GETS THE LESS SHE LIKES TO SHOP I WAS ACTUALLY PREPARED TO SPEND MORE LAST YEAR THAN SHE DID SHE SAYS MRS. BUSBY'S CLOSET IS A RECYCLER'S DREAM FROM HER MAIN WARDROBE SHE PULLS OUT A PLEATED OUTBACK RED SKIRT BOUGHT FIVE YEARS AGO AT THE LIMITED I'M WEARING IT AGAIN SHE SAYS PROUDLY MRS. BUSBY THEN DISCOVERS A HERRINGBONE SUIT JACKET AND CALCULATES ITS AGE EIGHT YEARS YOU KNOW WHAT I COULD GET THE SKIRT SHORTENED AND WEAR THIS AGAIN QUOTE SHE SAYS A TEN YEAR OLD TAPESTRY VEST THAT LONG SAT IDLE NOW LOOKS GOOD WITH A NEW DENIM SHIRT THEY SAY IF YOU DON'T WEAR IT FOR MORE THAN A YEAR GET RID OF IT SHE SAYS I DON'T LISTEN THERE ARE FEW HOLES MRS. BUSBY NEEDS TO FILL SHE'S GOT THE NAVY SUIT DRESS THE FLORAL PRINT DRESS WITH LACE COLLAR AT LEAST SIX BLACK SKIRTS LONG SHORT CULOTTE LINEN WOOL CREPE TEN VARIETIES OF WHITE BLOUSES HANG TOGETHER ON THE UPPER RACK MOST STILL COVERED WITH DRY CLEANING PLASTIC I DON'T KNOW WHY I BOUGHT THESE SHE SAYS I GUESS IT WAS A WEIGHT THING WHEN I FEEL HEAVY I GO ALL BLACK THIS MUST HAVE BEEN A LIGHT PHASE MRS. BUSBY RECYCLES A LOT OF PANTS BECAUSE SHE'S CONFUSED ABOUT SKIRT HEMLINES HER SHORT SKIRTS QUOTE AREN'T OUT EXACTLY THEY'RE JUST DIFFERENT QUOTE SHE RECENTLY FOUND SOME BLACK AND WHITE CHECKED SUSPENDER PANTS FROM SEVEN YEARS AGO AND THOUGHT OH THESE ARE KIND OF CUTE COLLEAGUES COMPLIMENTED HER ALL DAY BRITISH PETROLEUM COMPANY LONDON SAID IT MADE A SECOND OIL DISCOVERY WEST OF THE SHETLAND ISLANDS AND SAID IT WAS CONSIDERING AN EARLY DEVELOPMENT PLAN TO PRODUCE OIL FROM THE AREA THE FIND IS IN A BLOCK EQUALLY OWNED BY B. P. AND SHELL OIL COMPANY A UNIT OF ROYAL DUTCH SLASH SHELL GROUP IT HAS ESTIMATED RECOVERABLE RESERVES OF TWO HUNDRED FIFTY MILLION TO FIVE HUNDRED MILLION BARRELS OF OIL B. P. SAID IT AND SHELL WERE CONSIDERING OPTIONS TO PRODUCE OIL FROM THE AREA WHICH INCLUDES FOINAVEN A NEARBY DISCOVERY WITH SIMILAR RESERVE POTENTIAL THE FIRST PHASE OF PRODUCTION MAY BE CAPABLE OF YIELDING AROUND ONE HUNDRED THOUSAND BARRELS A DAY WITHIN THE NEXT FEW YEARS SO YOU THINK CELLULAR TELEPHONE COMPETITION IS TOUGH IN THE U. S. WELL TAKE A LOOK AT ITALY HERE THE BATTLE FOR A SECOND MOBILE PHONE LICENSE PITS THE COUNTRY'S THREE TITANS OF INDUSTRY GIANNI AGNELLI OF FIAT COMPANY SILVIO BERLUSCONI OF FININVEST COMPANY AND CARLO DE BENEDETTI OF ING C. OLIVETTI AND COMPANY IN A BRUTAL CONTEST FOR ONE OF EUROPE'S FASTEST GROWING TELECOMMUNICATIONS MARKETS AND ONE OF THE LAST TO OPEN UP TO COMPETITION BUT THIS BATTLE IS ABOUT MUCH MORE THAN MONEY MUCH OF THE ANIMOSITY BETWEEN THE COMBATANTS IS PERSONAL AND LONG RUNNING IN ADDITION THE FUTURE OF AT LEAST ONE OF THE COMPETITORS OLIVETTI COULD DEPEND ON THE DECISION AND THE PHONE CONTEST IS A MAJOR TEST OF WHETHER THINGS HAVE TRULY CHANGED HERE FOLLOWING A TWO YEAR INVESTIGATION THAT REVEALED THAT NEARLY EVERY GOVERNMENT CONTRACT AWARDED OVER THE PAST TEN YEARS HAS BEEN PADDED WITH EXTORTION PAYMENTS QUOTE UNTIL NOW WE'VE SEEN HOW CONTRACTS WERE AWARDED IN ITALY QUOTE SAYS LORENZO COLUCCI ITALIAN MARKET ANALYST FOR NATWEST SECURITIES IN LONDON YOU CAN BET THEY'RE GOING TO BE VERY CAREFUL WITH THIS ONE AFTER YEARS OF DELAY AND PRESSURE FROM THE EUROPEAN COMMUNITY THE ITALIAN GOVERNMENT ANNOUNCED IN MID DECEMBER THAT IT WOULD END STATE PHONE COMPANY SIP COMPANY'S LONGTIME MONOPOLY ON CELLULAR TELEPHONES AND AWARD A SECOND LICENSE FOR THE ITALIAN PORTION OF THE PAN EUROPEAN DIGITAL GSM SYSTEM TO A PRIVATE BIDDER BY THE END OF APRIL THE TOP TWO CONTENDERS ARE OMNITEL A CONSORTIUM LED BY OLIVETTI AND IN WHICH BELL ATLANTIC CORPORATION HOLDS A SIXTEEN POINT SIX PERCENT STAKE AND UNITEL A GROUP COMPRISING OLIVETTI'S LONGTIME RIVALS FIAT AND MEDIA GIANT FININVEST ALONG WITH THE U. K.'S VODAFONE GROUP P. L. C. BELLSOUTH CORPORATION OF ATLANTA STATE ENERGY GIANT E. N. I. COMPANY AND MILLICOM INCORPORATED OF NEW YORK ANOTHER BIDDER CONSIDERED LESS LIKELY TO WIN IS PRONTO ITALIA A CONSORTIUM OF ITALIAN COMPANIES WITH PACIFIC TELESIS GROUP OF CALIFORNIA AND MANNESMANN A. G. OF GERMANY THE COMPANY WITH THE MOST AT STAKE IS COMPUTER MAKER OLIVETTI WHICH AFTER THREE YEARS OF LOSSES AND RESTRUCTURING EFFORTS IS COUNTING ON DIVERSIFICATION INTO TELECOMMUNICATIONS IT'S CRUCIAL FOR US TO GET THAT LICENSE SAYS MR. DE BENEDETTI THE CONTROLLING SHAREHOLDER IN THE COMPANY THE PROBLEM HE SAYS IS THAT THE COMPANY DOESN'T HAVE THE MEANS TO BE A GLOBAL PLAYER IN A NEW ENORMOUS MULTIMEDIA MARKET WHERE BORDERS ARE NOT DEFINED HE ADDS WHAT'S THE SOLUTION FORM NEW ALLIANCES AND FIND ENTRY POINTS IN THIS NEW WORLD OF DIGITALIZATION WHICH IS PUTTING TOGETHER TELECOMMUNICATIONS COMPUTERS AND MEDIA FOR OLIVETTI TELECOMMUNICATIONS IS OUR ENTRY POINT IN THIS WORLD MR. DE BENEDETTI MET WITH PRIME MINISTER CARLO CIAMPI ABOUT THE CONTRACT LAST FALL EXPLAINING THAT IT WAS CRITICAL FOR OLIVETTI'S FUTURE AND THAT LOSING THE CONTRACT MAY RESULT IN SIGNIFICANT LAYOFFS QUOTE OLIVETTI'S EFFORT AT DOWNSIZING ITS COMPUTER BUSINESS IS ONLY ACHIEVABLE IF IT CHANNELS ITS WORKERS INTO TELECOMMUNICATIONS QUOTE SAYS PAUL DIONNE AN ANALYST WITH PASFIN SECURITIES IN MILAN IF THEY DON'T GET THE LICENSE YOU CAN BET THERE WILL BE NUMEROUS SHUTDOWNS AND THE MARKET WILL TAKE IT VERY BADLY UNITEL THE FIAT FININVEST E. N. I. CONSORTIUM ARGUES THAT THE CELLULAR LICENSE IS AN EXTENSION OF ITS CORE AUTO AND MEDIA BUSINESSES FIAT WHICH HAS A JOINT VENTURE WITH INTERNATIONAL BUSINESS MACHINES CORPORATION FOR DATA TRANSMISSION SERVICES WANTS TO FURTHER DEVELOP DATA AND VOICE TRANSMISSION FOR THE TRANSPORTATION AND RETAIL SECTORS SAYS NICOLO NEFRI CHIEF EXECUTIVE OF THE UNITEL CONSORTIUM FURTHERMORE FININVEST WHICH OWNS THREE NATIONAL TELEVISION NETWORKS AND A DEPARTMENT STORE CHAIN PLANS TO DEVELOP MULTIMEDIA APPLICATIONS WITH THE LICENSE JUST BECAUSE SOMEONE HAS THE HARDWARE LIKE OLIVETTI DOESN'T MEAN THEY HAVE THE SERVICE CULTURE AND EXPERIENCE NECESSARY MR. NEFRI SAYS THAT'S LIKE SAYING APPLE COMPUTER SHOULD MANAGE THE CELLULAR NETWORK IN THE U. S. THE BIDDING WAR IS JUST THE LATEST EXAMPLE OF CORPORATE COMBAT THE THREE INDUSTRIAL BARONS HAVE WAGED AGAINST ONE ANOTHER PERIODICALLY IN A COUNTRY WHERE A FEW FAMILIES STILL CONTROL THE BULK OF PRIVATE INDUSTRY BUSINESS CAN AND DOES BECOME VERY PERSONAL MR. DE BENEDETTI AND MR. BERLUSCONI ALREADY ARE IN THE MIDST OF A VICIOUS THREE YEAR OLD WAR OF WORDS FOLLOWING A HIGH PROFILE BATTLE FOR CONTROL OF THE MONDADORI PUBLISHING HOUSE IN NINETEEN NINETY ONE AFTER DIVIDING MONDADORI'S NEWSPAPERS AND MAGAZINES BETWEEN THEM THE TWO NOW USE THE PERIODICALS TO SNIPE AT EACH OTHER IN A DECEMBER COVER STORY IN THE DE BENEDETTI CONTROLLED ESPRESSO NEWSMAGAZINE MR. BERLUSCONI WAS PORTRAYED WITH A PINOCCHIO NOSE AND WAS CALLED THE MAGNIFICENT LIAR MR. BERLUSCONI'S PANORAMA MAGAZINE OFTEN ATTACKS MR. DE BENEDETTI'S VARIOUS BUSINESSES WHEN COMPETITORS AREN'T POINTING FINGERS AT ONE ANOTHER THEY TAKE AIM AT SIP THE STATE PHONE OPERATOR BIDDERS ACCUSE SIP OF DOING EVERYTHING LEGAL AND ILLEGAL TO PRESSURE THE GOVERNMENT TO POSTPONE AWARDING THE SECOND LICENSE UNTIL IT HAS REACHED A DOMINANT POSITION IN THE CELLULAR MARKET AFTER THREE YEARS OF CELLULAR SERVICE SIP HAS ONE POINT TWO MILLION SUBSCRIBERS PRIMARILY TO ITS ANALOG CELLULAR SYSTEM THERE'S NO DOUBT SIP WAS INSTRUMENTAL IN DELAYING THE WHOLE THING SAYS NATWEST'S MR. COLUCCI QUOTE IN THAT BUSINESS THEY WANT TO REACH CRITICAL MASS AND NOW THEY'VE REACHED ONE MILLION SUBSCRIBERS SO THEY'LL HAVE A HARD CORE OF USERS QUOTE THE GOVERNMENT'S DELAY IN OPENING THE MARKET TO COMPETITION BECAME SO CONTROVERSIAL LAST SUMMER THAT ITALY'S INDEPENDENT ANTITRUST AUTHORITY STEPPED IN ISSUING A CRITICAL REPORT ANY FURTHER DELAY IN OPENING UP TO COMPETITION RISKS COMPROMISING THE FUTURE ORDER OF THE DIGITAL CELLULAR PHONE MARKET THE AUTHORITY SAID IN ITS REPORT THE REPORT SAID AMONG OTHER THINGS THAT SIP HAD AN ADVANTAGE OVER COMPETITORS BECAUSE IT HAS ALREADY BEEN ABLE TO INVEST IN THE NEW GSM SYSTEM WHILE IT WILL TAKE COMPETITORS AT LEAST EIGHTEEN MONTHS TO CATCH UP SIP ALSO HAD BEEN SELLING AND ADVERTISING THE GSM TO THE PUBLIC IN VIOLATION OF THE GOVERNMENT'S CONCESSION WHICH GRANTED SIP ONLY EXPERIMENTAL OPERATION RIGHTS UNTIL A SECOND OPERATOR IS NAMED THE ANTITRUST AUTHORITY SAID THE LIMITATION OF THE MARKET PROLONGS THE PERIOD NECESSARY TO REACH A BREAK EVEN POINT FOR COMPETITORS THE AUTHORITY SAID SIP RESPONDS SIP DENIES IT HAS LOBBIED TO DELAY OPENING THE MARKET SIP HAS ALWAYS BEEN AMENABLE TO THE OPENING TO A SECOND OPERATOR SAYS ERNESTO PASCALE SIP CHAIRMAN IN FACT WE ALREADY ASKED THE MINISTER OF POST AND TELECOMMUNICATIONS A WHILE AGO TO SPEED UP THE RELEVANT DECISIONS SIP ARGUES THAT IT PREVIOUSLY HAD BEEN GRANTED THE TELECOMMUNICATIONS MONOPOLY CONCESSION FOR ITALY UNTIL TWO THOUSAND FOUR WITH THE INTRODUCTION OF A SECOND OPERATOR SIP SAYS IT IS ENTITLED TO COMPENSATION FOR THE LOSS OF FUTURE BUSINESS ALTHOUGH GOVERNMENT LAWYERS ARGUE THAT THE ORIGINAL CONCESSION DID NOT INCLUDE GSM DIGITAL TECHNOLOGY THE TELECOMMUNICATIONS MINISTRY HAS AGREED TO NEGOTIATE WITH SIP OVER POSSIBLE COMPENSATION MEANWHILE SIP SAYS IT HAS STOPPED ADVERTISING THE GSM SYSTEM UNTIL THE SECOND LICENSE IS AWARDED HOWEVER ALMOST EVERY DAY THERE IS A NEWSPAPER AD BY GSM HARDWARE SUPPLIERS THAT FEATURES PHOTOS OF SIP'S GSM PHONES WHILE FEW OF THE PLAYERS WILL EMERGE WITHOUT BATTLE SCARS THE BIG WINNER SHOULD BE CONSUMERS ANALYSTS SAY THE INTRODUCTION OF COMPETITION INTO ITALY'S BUREAUCRATIC STATE TELECOMMUNICATIONS SECTOR IS DESTINED TO REVOLUTIONIZE THE WAY BUSINESS IS DONE HERE ACCORDING TO NATWEST SECURITIES PRICES FOR USING CELLULAR PHONES IN ITALY SHOULD FALL IN LINE WITH THOSE IN OTHER EUROPEAN COUNTRIES THAT RECENTLY OPENED THEIR MARKETS AFTER COMPETITION WAS INTRODUCED IN THE GERMAN CELLULAR MARKET IN MID NINETEEN NINETY TWO PRICES IMMEDIATELY FELL THIRTY PERCENT TO CONSUMERS THAT CAN ONLY BE GOOD NEWS FOR ITALIANS WHO HAVE EMBRACED THEIR TELEFONINI AS THE LATEST STATUS SYMBOL FOR THE NINETIES MS. BANNON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S MILAN BUREAU ONCE THE FRENCH GOVERNMENT DISPOSES OF ITS MAJORITY STAKES IN INSURER UNION DES ASSURANCES DE PARIS AND AUTO MAKER RENAULT S. A. DECIDING WHICH STATE OWNED ENTERPRISES WILL BE PRIVATIZED NEXT BECOMES A RISKIER GAME INVESTORS AREN'T EXPECTED TO NEED MUCH PRODDING TO SNAP UP U. A. P. SHARES WHICH MAY BE OFFERED IN THE NEXT THREE TO FOUR WEEKS AND WHICH COULD RAISE UP TO THIRTY BILLION FRANCS FIVE BILLION DOLLARS FOR THE STATE THE MOVE TO SELL U. A. P. CONFORMS TO PRIME MINISTER EDOUARD BALLADUR'S PREFERENCE FOR SURE WINNERS IN THE EARLY STAGES OF A PRIVATIZATION PROGRAM THAT IS SUPPOSED TO INCLUDE TWENTY ONE COMPANIES OVER FIVE YEARS THE GOVERNMENT SO FAR HAS SOLD MOSTLY WELL KNOWN FINANCIALLY SOLID COMPANIES HYDROCARBONS PRODUCER SOCIETE NATIONALE ELF AQUITAINE BANQUE NATIONALE DE PARIS BANQUE HERVET AND CHEMICAL SLASH PHARMACEUTICAL GROUP RHONE POULENC S. A. BUT THE SELECT GROUP IS QUICKLY BEING WHITTLED DOWN RENAULT COMING OFF A FAILED MERGER WITH SWEDEN'S A. B. VOLVO AND FACING CYCLICAL WEAKNESS IN THE AUTO INDUSTRY IS THE ONLY OTHER COMPANY THAT THE GOVERNMENT HAS PLEDGED TO PRIVATIZE THIS YEAR DESPITE A TARNISHED IMAGE FROM THE VOLVO AFFAIR RENAULT'S STRONG EUROPEAN MARKET PRESENCE AND INNOVATIVE PRODUCT RANGE LIKELY WILL ATTRACT PLENTY OF BIDS ANALYSTS SAY QUOTE THE COMPANY USED TO BE CONSIDERED A LAME DUCK BUT SINCE NINETEEN EIGHTY SEVEN RENAULT HAS BEEN RUN AS A PRIVATE COMPANY AND IT HAS COMPLETELY RESPECTABLE RESULTS NOTED ROLAND GAGNON OF MASSONAUD FONTENAY KERVERN S. A. A FRENCH BROKERAGE UNIT OF THE NETHERLAND'S A. B. N. AMRO HOLDING N. V. SELLING IT WON'T BE A PROBLEM THE SALES ALREADY SET FOR THIS YEAR WILL BRING IN LOTS OF CASH ELF AND U. A. P. ALONE WILL GENERATE PRIVATIZATION RECEIPTS WELL BEYOND THE NINETEEN NINETY FOUR TARGET OF FIFTY FIVE BILLION FRANCS BUT AFTER THEM WHAT'S LEFT THERE IS INDEED A QUALITY ISSUE NOTED ERIC TAZE BERNARD AN EQUITIES FUND MANAGER AT BANQUE INDOSUEZ A UNIT OF FRANCE'S COMPANY DE SUEZ THE COMPANIES ALREADY SOLD OR ON BOARD ARE VERY HIGHLY REGARDED SO THOSE TO FOLLOW COULD PALE IN COMPARISON SOME OBSERVERS THINK THE PRIME MINISTER MAY WAIT UNTIL NINETEEN NINETY FIVE TO GIVE SOME WEAKER COMPANIES TIME TO WORK OUT THEIR FINANCIAL PROBLEMS WITH A PRESIDENTIAL ELECTION COMING UP IN MARCH NINETEEN NINETY FIVE OBSERVERS ALSO SUGGEST MR. BALLADUR MAY TRY TO AVOID SELLING STATE GROUPS THAT MAY SUBSEQUENTLY TRIM THEIR BLOATED PAYROLLS THAT WOULDN'T WIN MR. BALLADUR MANY VOTES BUT IF PRIVATIZATIONS CONTINUE THE SAFEST CHOICE LIKELY WOULD BE ONE OR MORE OF THE INSURERS REMAINING ON THE LIST ASSURANCES GENERALES DE FRANCE GROUPE DES ASSURANCES NATIONALES CAISSE CENTRALE DE REASSURANCE AND CAISSE NATIONALE DE PREYVOYANCE ALL ARE IN RELATIVELY GOOD FINANCIAL SHAPE EXCEPT FOR A. G. F. WHICH HAS YET TO FULLY PURGE LOSSES AT ITS REAL ESTATE FINANCING AFFILIATE SOME MARKET WATCHERS ARE CONCERNED THAT AFTER U. A. P. AND B. N. P. DEMAND FOR FINANCIAL SHARES WILL HAVE BEEN SATURATED FOR THE SHORT TERM BUT RICHARD DAVIDSON WHO FOLLOWS THE FRENCH MARKET FOR MORGAN STANLEY INTERNATIONAL IN LONDON DISAGREES AS LONG AS THEY'RE PRICED RIGHT I DON'T SEE ANY PROBLEM THERE'S STILL PLENTY OF DEMAND FROM FUND MANAGERS AS WELL AS INDIVIDUAL INVESTORS FOR PRIVATIZING FINANCIALS THE LIQUIDITY IS THERE QUOTE ON THE INDUSTRIAL SIDE A FAVORITE SELLOFF CANDIDATE THIS YEAR IS SEITA THE CIGARETTE GROUP THAT PRODUCES THE GAULOISES BRAND ITS DOMINATION OF DOMESTIC CIGARETTE DISTRIBUTION MAKES IT A GLITTERING PRIZE FOR A NUMBER OF FOREIGN TOBACCO GROUPS B.A.TT INDUSTRIES P. L. C. PHILIP MORRIS COMPANIES AND FRANCE'S BOLLORES TECHNOLOGIES HAVE EXPRESSED INTEREST IN A STAKE IN SEITA PECHINEY S. A. THE ALUMINUM AND PACKAGING CONGLOMERATE REMAINS A WILD CARD THAT COULD SOON SHOW UP ON THE AUCTION BLOCK PECHINEY CHAIRMAN JEAN GANDOIS HAS SAID MORE THAN ONCE THAT HE WILL USE THE FIRST WINDOW THAT OPENS TO PRIVATIZE PECHINEY BUT HE ACKNOWLEDGES THAT A SLUMP IN ALUMINUM PRICES MAKES ANY SHORT TERM MOVE IMPROBABLE THE GOVERNMENT IS SEEN LESS PRESSED TO RELEASE ITS GRIP ON THE CLUTCH OF DEFENSE COMPANIES INCLUDED IN ITS LIST OF TWENTY ONE CANDIDATES THOMSON S. A. WHICH MAKES MISSILES RADAR AND OTHER WARFARE ELECTRONICS AIRCRAFT ENGINE MAKER SNECMA AND AEROSPATIALE WHICH PRIMARILY MAKES COMMERCIAL JETS BUT ALSO HAS A MISSILES SIDELINE THEN THERE ARE THE BIG MONEY LOSERS AIR FRANCE COMPUTER MAKER GROUPE BULL S. A. STEEL GROUP USINOR SACILOR AND CREDIT LYONNAIS THE RETAIL BANK IN THE FIRST THREE CASES THE GOVERNMENT WILL BE BUSY ENOUGH THIS YEAR TRYING TO WARD OFF EUROPEAN UNION OFFICIALS WHO DISAPPROVE OF THE LARGE CASH INFUSIONS USED TO KEEP AIR FRANCE BULL AND USINOR OUT OF BANKRUPTCY IT SEEMS UNLIKELY THE GOVERNMENT WOULD WANT TO DISPOSE OF THESE ASSETS IN THEIR MOST FRAGILE CONDITIONS AS FOR CREDIT LYONNAIS OFFICIALS EARLIER THIS WEEK CONFIRMED FRENCH NEWS REPORTS THAT THE GOVERNMENT IS CONSIDERING A RECAPITALIZATION OF THE BANK ROGERS COMMUNICATIONS INCORPORATED APPEARS TO BE A STEP CLOSER TO LAUNCHING ITS PROPOSED BID TO ACQUIRE MACLEAN HUNTER LIMITED A CABLE TELEVISION BROADCASTING AND PUBLISHING CONCERN BASED HERE THE ONTARIO SECURITIES COMMISSION ISSUED AN ORDER THAT BLOCKS MACLEAN HUNTER FROM TENDERING OR VOTING A BLOCK OF THIRTY SIX POINT THREE MILLION MACLEAN SHARES THAT ARE UNDER ITS CONTROL IN CONNECTION WITH ANY BID FOR MACLEAN HUNTER'S STOCK AS REPORTED ROGERS A TELECOMMUNICATIONS CONCERN HAS EXPRESSED CONCERN OVER THE POSSIBLE TAX CONSEQUENCES OF HAVING TO ACQUIRE THE BLOCK AND SOUGHT REASSURANCE FROM REGULATORS BEFORE PROCEEDING WITH ITS PROPOSED BID FOR MACLEAN HUNTER THE RULING FROM REGULATORS CAME AFTER MACLEAN HUNTER OPTED NOT TO CHALLENGE AN APPLICATION BY ROGERS FOR THE ORDER MACLEAN HUNTER ALSO AGREED NOT TO DISPOSE OF THE SHARES WITHOUT GIVING ROGERS TWO DAYS' WRITTEN NOTICE OF ITS INTENT TO DO SO PROVIDED THAT ROGERS MAKES ITS OFFER BY FIVE P. M. E. S. T. NEXT FRIDAY THE COMPROMISE WORKED OUT BY LAWYERS FOR THE TWO COMPANIES REMOVES ANY NEED FOR A REGULATORY HEARING AND WOULD APPEAR TO CLEAR THE WAY FOR ROGERS TO MAKE ITS LONG AWAITED BID GRAHAM SAVAGE CHIEF FINANCIAL OFFICER OF ROGERS DECLINED TO COMMENT ON WHEN ROGERS MIGHT MAKE AN OFFER QUOTE THAT IS A MATTER FOR OUR BOARD TO DISCUSS QUOTE HE SAID ROGERS SAID LAST WEEK IT IS INTERESTED IN ACQUIRING MACLEAN HUNTER FOR A COMBINATION OF CASH AND STOCK AT CURRENT MARKET VALUES FOR MACLEAN HUNTER SHARES A BID FOR THE COMPANY COULD BE WORTH TWO POINT NINE THREE BILLION CANADIAN DOLLARS TWO POINT ONE EIGHT BILLION U. S. DOLLARS THAT EXCLUDES THE THIRTY SIX POINT THREE MILLION SHARE BLOCK IN APPARENT SPECULATION THAT A FORMAL OFFER COULD COME SHORTLY SHARES OF MACLEAN HUNTER ROSE IN TORONTO STOCK EXCHANGE TRADING YESTERDAY TO CLOSE AT SEVENTEEN CANADIAN DOLLARS UP THIRTY SEVEN POINT FIVE CANADIAN CENTS MOST ANALYSTS HAVE SAID A FIRST BID BY ROGERS IS LIKELY TO BE WORTH AT LEAST SEVENTEEN CANADIAN DOLLARS A SHARE SHARES OF ROGERS FELL TO TWENTY CANADIAN DOLLARS DOWN SIXTY TWO POINT FIVE CANADIAN CENTS QUOTE CELLULAR PHONES ARE BEING WAY OVEREMPHASIZED PEOPLE JUST DON'T SPEND THAT MUCH TIME IN THEIR CARS HERSCHEL SHOSTECK NINETEEN EIGHTY SIX BUSINESS FIRST MAGAZINE LOUISVILLE KENTUCKY PREDICTING THE FUTURE OF NEW TECHNOLOGY IS PERILOUS AS THOSE WHO TRIED IN CELLULAR'S INFANCY CAN ATTEST IN NINETEEN EIGHTY SIX MR. SHOSTECK A SILVER SPRING MARYLAND CONSULTANT FORECAST A TOTAL OF ONE POINT FIVE MILLION CELLULAR USERS IN THE U. S. BY NINETEEN NINETY MCKINSEY AND COMPANY WAS EVEN MORE CONSERVATIVE COMPILING AN EARLIER STUDY FOR AMERICAN TELEPHONE AND TELEGRAPH COMPANY FORECASTING ONLY NINE HUNDRED THOUSAND USERS BY THE YEAR TWO THOUSAND OUT OF HUNDREDS OF OTHER PREDICTIONS ONLY A HANDFUL WERE MUCH MORE OPTIMISTIC THE ACTUAL NINETEEN NINETY FIGURE FIVE POINT THREE MILLION AND BY THE END OF LAST YEAR AN ESTIMATED FOURTEEN MILLION PEOPLE HAD CELLULAR PHONES GROWTH FORECASTS FOR MOST NEW TECHNOLOGIES ARE WILDLY OVEROPTIMISTIC MAINLY BECAUSE THE PEOPLE WHO MADE THEM HAVE BEEN SEDUCED BY TECHNOLOGICAL WONDER SAYS STEVEN P. SCHNAARS A PROFESSOR OF MARKETING AT BARUCH COLLEGE IN NEW YORK AND AUTHOR OF A BOOK ON THE SUBJECT WITH CELLULAR PHONES HOWEVER EXACTLY THE OPPOSITE WAS TRUE HOW COULD SO MANY FORECASTERS FALL SO FAR SHORT OF THE MARK BY REPEATING A MISTAKE THEY MADE WITH COMPUTERS IN BOTH CASES THEY FAILED TO GRASP THE RELENTLESS ADVANCE IN MICROPROCESSORS AND OTHER MICROCHIPS ABETTED BY THE DEVELOPMENT OF SOFTWARE TRENDS THAT DROVE UP PERFORMANCE AND DROVE DOWN PRICES WITH UNEXPECTED RAPIDITY MOREOVER DEMAND FOR MOBILITY AND FOR QUICK ACCESS TO INFORMATION HAS PROVED FAR VASTER THAN EXPECTED DEMAND FOR NEW WIRELESS PRODUCTS AND SERVICES SUCH AS DIGITAL DATA NETWORKS AND HAND HELD DIGITAL COMMUNICATORS SHOULD BE DRIVEN BY THE SAME FORCES BUT THINGS GET TRICKY WHEN OTHER VARIABLES ARE FACTORED IN SUCH AS THE LACK OF STANDARDS FOR WIRELESS TRANSMISSION THE FRAGMENTED NATURE OF EXISTING AND PROPOSED WIRELESS NETWORKS AND THE UNCERTAIN NATURE OF THE COMPETITION AT LEAST FOR NOW MARKET RESEARCH FIRMS AND INDUSTRY OFFICIALS ARE MOVING TOWARD A CONSENSUS THAT THE GROWTH CURVE FOR NEW WIRELESS PRODUCTS AND SERVICES WILL RESEMBLE A HOCKEY STICK WITH A FAIRLY LONG BLADE THAT IS SEVERAL YEARS OF DORMANCY AND SLOW ACCEPTANCE AND THEN AN EXPLOSION OF DEMAND AFTER THE TECHNOLOGY HAS BEEN REFINED AND COSTS DRIVEN DOWN KEEPING IN MIND THAT FORECASTING MICROCHIP BASED TECHNOLOGIES IS MUCH MORE ART THAN SCIENCE WE NOW OFFER SOME SPECIFIC PREDICTIONS BY INDUSTRY EXPERTS AND EXECUTIVES ABOUT THE WIRELESS FUTURE GLEANED FROM INTERVIEWS AND OTHER PUBLICATIONS THE FORECASTS ARE ACCOMPANIED BY OUR ASSESSMENT OF PROBABILITY FROM ZERO LEAST PROBABLE TO TEN MOST PROBABLE HERSCHEL SHOSTECK HERSCHEL SHOSTECK ASSOCIATES IT'S LIKELY EVERY CREDIBLE FORECAST FOR CELLULAR PHONES IS LOW HE NOW EXPECTS THE NUMBER OF USERS WORLDWIDE TO JUMP TO AROUND ONE HUNDRED MILLION IN THE YEAR TWO THOUSAND FROM THIRTY MILLION NOW BUT WOULDN'T BE SURPRISED IF IT WERE CLOSER TO TWO HUNDRED MILLION PROBABILITY EIGHT WHO COULD GO WRONG WITH A FORECAST LIKE THAT MR. SHOSTECK HAS APPARENTLY LEARNED HIS LESSON HE CITES LOOMING PRICE COMPETITION AND HUGE NEW DEMAND FROM CHINA AND EASTERN EUROPE CRAIG MCCAW CHIEF EXECUTIVE OFFICER MCCAW CELLULAR COMMUNICATIONS INCORPORATED KIRKLAND WASHINGTON THE HOME TELEPHONE WILL GO THE WAY OF THE DINOSAURS DRIVEN TO EXTINCTION BY PERSONAL DIGITAL ASSISTANTS PROBABILITY ONE MAYBE IN THE YEAR TWO THOUSAND TWENTY BUT FOR A LONG TIME WIRELESS DATA DEVICES WILL BE LIMITED LARGELY TO THE MOST AFFLUENT TWENTY PERCENT OF THE POPULATION MR. MCCAW MAY HAVE FALLEN INTO WHAT PROFESSOR SCHNAARS CALLS QUOTE THE TRAP OF UNBRIDLED OPTIMISM BROUGHT ON BY A LOVE OF EXOTIC TECHNOLOGY QUOTE BOOZ ALLEN AND HAMILTON NEW YORK PREDICTS FOURTEEN MILLION WIRELESS DATA DEVICES IN USE BY THE YEAR TWO THOUSAND EXPLAINING THAT WITH THE IMMINENT INTRODUCTION OF NETWORKS AND EASY TO USE SOFTWARE THE MARKET IS MORE ADVANCED THAN IT LOOKS PROBABILITY EIGHT A BOOM IN WIRELESS SUBNOTEBOOK COMPUTERS SHOULD MAKE THIS POSSIBLE AND THE PREDICTION IS IN LINE WITH MOST OTHER MARKET RESEARCHERS' FORECASTS PROBABILITY FIVE THAT'S AN AWFUL LOT OF PEOPLE WHO DON'T CARE HOW MUCH A PHONE CALL COSTS BUT THEN LOOK AT THE EXPLOSION IN PORTABLE COMPUTERS AND ELECTRONIC MAIL AKIRA MITARAI GENERAL MANAGER SHARP CORPORATION'S INFORMATION SYSTEMS GROUP AT A SANTA CLARA CALIFORNIA CONFERENCE THE MARKET FOR P. D. A.S WILL GROW TO FIFTY MILLION UNITS BY THE YEAR TWO THOUSAND GASTON BASTIENS GENERAL MANAGER OF APPLE'S PERSONAL INTERACTIVE ELECTRONICS DIVISION ON MR. MITARAI'S FORECAST ABSOLUTELY IT COULD GO EVEN HIGHER PROBABILITY ZERO FOR BOTH THE CHINESE WOULD HAVE TO BUY THESE THINGS IN LIEU OF CHOPSTICKS MARC PORAT CHIEF EXECUTIVE OFFICER GENERAL MAGIC INCORPORATED MOUNTAIN VIEW CALIFORNIA NINETEEN NINETY FIVE WILL BE THE YEAR OF THE MASS MARKET FOR HAND HELD WIRELESS DEVICES ANDREW SEYBOLD EDITOR OUTLOOK ON MOBILE COMPUTING BROOKDALE CALIFORNIA THE SHARP INCREASE IN USERS WILL BEGIN IN NINETEEN NINETY SIX PROBABILITY SIX FOR MR. PORAT AND SEVEN FOR MR. SEYBOLD GIVEN THE CHAOTIC STATE OF WIRELESS NETWORKS NINETEEN NINETY SEVEN IS A SAFER BET AND SO SAY MARKET RESEARCH FIRMS SUCH AS B. I. S. STRATEGIC DECISIONS NORWELL MASSACHUSETTS MR. SEYBOLD QUOTE EVERYONE WHO HAS EVER PREDICTED THE QUOTE YEAR OF THE WHATEVER HAS BEEN WRONG QUOTE PROBABILITY EIGHT THAT'S ROUGHLY THE PROBABILITY PROFESSOR SCHNAARS CAME UP WITH ALSO MR. PORAT DURING THE NEXT THREE YEARS THERE WILL BE OPPORTUNITIES FOR COMPANIES TO LOSE VERY LARGE AMOUNTS OF MONEY PROBABILITY TEN THERE ISN'T ROOM FOR ALL THE WIRELESS NETWORKS COMPANIES PLAN TO BUILD FOR EXAMPLE SOMETHING HAS TO GIVE DON VALENTINE VENTURE CAPITALIST SEQUOIA CAPITAL SANTA CLARA CALIFORNIA THESE FANCY WIRELESS NETWORKS I'D BE SURPRISED IF MUCH EXISTED BEFORE THE TURN OF THE CENTURY PROBABILITY THREE IT'S TRUE THAT THE COMPLEXITY OF USING WIRELESS NETWORKS COULD BE A BIG OBSTACLE BUT THAT AS WILLIAM H. GATES WOULD SAY IS JUST A SOFTWARE PROBLEM WILLIAM H. GATES CHAIRMAN OF MICROSOFT CORPORATION I THINK THE IDEA OF INFORMATION AVAILABLE AT YOUR FINGERTIPS AND INSTANT GLOBAL COMMUNICATION IS REALIZABLE IT WILL HAPPEN SUBSTANTIALLY OVER THE NEXT FOUR TO FIVE YEARS PROBABILITY TEN WELL MAYBE NINE WHY ELSE WOULD WE DO THIS REPORT MICHAEL SPINDLER CHIEF EXECUTIVE OFFICER APPLE FORECASTS COME AND GO AND MANY OF THEM ARE FORGOTTEN PROBABILITY TEN ABSOLUTELY THAT'S HOW MARKET RESEARCH COMPANIES STAY IN BUSINESS MR. HILL IS THE CHIEF OF THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU AMERICAN TELEPHONE AND TELEGRAPH COMPANY SAID IT WILL CUT AS MANY AS FIFTEEN THOUSAND JOBS OR FIFTEEN PERCENT OF THE WORK FORCE IN ITS GIANT LONG DISTANCE SERVICES UNIT IN A BID TO BOOST PROFITS IN THE SLOW GROWTH BUSINESS THE REDUCTIONS SET OVER TWO YEARS AND TO INCLUDE EIGHT THOUSAND MANAGERS COME AS THE COMMUNICATION SERVICES GROUP BATTLES M. C. I. COMMUNICATIONS CORPORATION AND SPRINT CORPORATION FOR CONSUMER AND BUSINESS CUSTOMERS THE GROUP WHICH ACCOUNTS FOR MORE THAN FORTY BILLION DOLLARS OF A. T. AND T.'S ROUGHLY SIXTY SEVEN BILLION DOLLARS IN ANNUAL REVENUE EMPLOYS NINETY SIX THOUSAND FIVE HUNDRED PEOPLE OF A TOTAL WORK FORCE OF THREE HUNDRED NINE THOUSAND SINCE ITS BREAKUP A DECADE AGO A. T. AND T. ALREADY HAS CUT MORE THAN ONE HUNDRED FORTY THOUSAND JOBS THE CONSUMER UNIT IN THE COMMUNICATION SERVICES GROUP WILL SEE THE BIGGEST CUTS AS MANY AS NINE THOUSAND JOBS MORE THAN HALF OF THEM IN MANAGEMENT THE BUSINESS SERVICES UNIT WHICH SELLS LONG DISTANCE SERVICES TO SMALL BUSINESSES AND CORPORATIONS WILL TRIM ABOUT SIX THOUSAND POSITIONS THE CUTS ARE BEING DIRECTED BY THE GROUP'S CHIEF EXECUTIVE OFFICER ALEX MANDL WHO DIDN'T RULE OUT FURTHER CUTS IF THE CURRENT PLAN DOESN'T BOOST REVENUE AND PROFITS HE SAID HE WANTS TO BOOST THE GROUP'S ALMOST FLAT REVENUE GROWTH TO AT LEAST THE INDUSTRY RATE OF FOUR PERCENT TO FIVE PERCENT M. C. I.'S REVENUE BY CONTRAST IS CURRENTLY GROWING AT THREE TIMES THE INDUSTRY RATE SPRINT'S NUMBERS ARE ALSO SHOWING STEADY IMPROVEMENT ALTHOUGH LESS ROBUST THAN M. C. I.'S QUOTE I'M DETERMINED TO GET ON THIS GROWTH CURVE QUOTE MR. MANDL SAID IN AN INTERVIEW IF WE CAN GET ON IT THE JOB CUTS SHOULD BE BEHIND US BUT HE NOTED UNLESS YOU GROW THE BUSINESS IN LINE WITH THE INDUSTRY'S GROWTH YOU'LL FACE AN ENVIRONMENT OF DOWNSIZING HE SAID THE CUTS WILL REMOVE SOME MANAGEMENT LAYERS AND RID THE UNIT OF OVERLAPPING FUNCTIONS A. T. AND T. HAS ESTIMATED THAT IT CAN SAVE ABOUT NINE HUNDRED MILLION DOLLARS A YEAR THROUGH THE CUTS BY INSTALLING NEW TECHNOLOGY IN ITS LONG DISTANCE NETWORK AND OTHER STREAMLINING THOSE SAVINGS SHOULD COME IN HANDY IF A. T. AND T. MUST FIGHT A PRICE WAR WITH THE LEANER M. C. I. FOR NOW LONG DISTANCE PRICES ARE HEADING UP THANKS TO NUMEROUS A. T. AND T. RATE INCREASES IN THE PAST YEAR THE LATEST CUTS ADD TO ALREADY ANNOUNCED PLANS TO CUT SIX THOUSAND OPERATORS OUT OF EIGHTEEN THOUSAND A. T. AND T. HAS ALSO BEGUN CUTTING SEVEN THOUSAND FIVE HUNDRED JOBS AT ITS COMPUTER UNIT GLOBAL INFORMATION SOLUTIONS FORMERLY N. C. R. CORPORATION AND ABOUT ONE THOUSAND FIVE HUNDRED JOBS AT ITS INTERNAL INFORMATION SYSTEMS OPERATIONS REACTION TO A. T. AND T.'S CUTBACKS FROM WORKERS AND UNION LEADERS WAS SWIFT AND BITTER THERE ARE MANY PEOPLE HERE WHO COME TO WORK EVERY DAY AND ARE NUMB NOT KNOWING WHETHER THEY'RE NEXT SAID ONE HEADQUARTERS STAFFER WHO ASKED NOT TO BE IDENTIFIED JAMES IRVINE VICE PRESIDENT OF A. T. AND T.'S LARGEST UNION CALLED A. T. AND T. A HEALTHY COMPANY PLAYING TO WALL STREET LAURA UNGER PRESIDENT OF C. W. A. LOCAL ONE THOUSAND ONE HUNDRED FIFTY IN NEW YORK ASKED WHEN IS ENOUGH PROFIT ENOUGH HER LOCAL HAS BEEN CUT TO LESS THAN ONE THOUSAND MEMBERS FROM TWO THOUSAND SIX HUNDRED IN THREE YEARS DESPITE THE FACT THAT A. T. AND T.'S FOURTH QUARTER OPERATING PROFIT MARGIN OF TEN POINT FOUR PERCENT WAS THE HIGHEST IN THE COMPANY'S HISTORY A. T. AND T. EXECUTIVES INTERNALLY HAD DENIED A WALL STREET JOURNAL REPORT IN EARLY DECEMBER THAT SAID BIG CUTS WERE PLANNED IN ITS CONSUMER UNIT IN A MEMO TO HIS EMPLOYEES JOSEPH NACCHIO RECENTLY APPOINTED PRESIDENT OF CONSUMER SERVICES CALLED THE JOURNAL REPORT QUOTE MISLEADING QUOTE HE ADDED WE DO NOT HAVE DEFINITIVE WORKFORCE REDUCTION PLANS AT THIS TIME WE WILL TAKE EVERY INITIATIVE TO DRIVE OTHER COSTS OUT OF THE BUSINESS BEFORE RESORTING TO WORK FORCE REDUCTIONS YESTERDAY AN A. T. AND T. SPOKESMAN SAID ALL THE POINTS MADE IN THAT MEMO AT THAT TIME WERE COMPLETELY ACCURATE A. T. AND T. SAID IT WILL OFFER NONMANAGEMENT EMPLOYEES WHO ARE AFFECTED BY THE REDUCTION AS MUCH AS ONE HUNDRED FOUR WEEKS OF WAGES FOR THE MOST SENIOR PEOPLE MANAGERS WHO LEAVE THE COMPANY WILL GET AS MUCH AS FORTY TWO WEEKS SALARY DEPENDING ON THEIR SENIORITY A. T. AND T. SAID A. T. AND T. ABSOLUTELY HAS TO MAKE THESE CUTS IF MANDL IS GOING TO DOUBLE THE REVENUE GROWTH IN LONG DISTANCE SAID JACK B. GRUBMAN TELECOMMUNICATIONS ANALYST AT PAINEWEBBER INCORPORATED HAVING TOO MANY PEOPLE NOT ONLY HURTS PROFITS IT PARALYZES THE COMPANY'S ABILITY TO COMPETE AS PART OF THE CUTBACKS AT THE CONSUMER UNIT A. T. AND T. WILL CONSOLIDATE SALES AND SERVICE OPERATIONS AND CLOSE CENTERS IN PROVIDENCE R. I. CHARLESTON WEST VIRGINIA BLOOMINGTON MINNESOTA CHEYENNE WYOMING ITASCA ILLINOIS PLEASANTON CALIFORNIA AND SILVER SPRING MARYLAND THE EIGHT THOUSAND MANAGEMENT CUTS WILL INCLUDE HEADQUARTERS STAFF AND ADMINISTRATIVE SUPPORT FUNCTIONS WHILE THE REST WILL BE NONMANAGEMENT POSITIONS IN OPERATIONS AND CLERICAL AREAS A. T. AND T. SAID IT WILL BEGIN NOTIFYING INDIVIDUAL EMPLOYEES ABOUT THE CUTS BY THE END OF MARCH BRACE YOURSELF FOR A NEW WORLD IT'S A WORLD IN WHICH INVISIBLE COMMUNICATIONS NETWORKS GIRD EVERY MAJOR METROPOLITAN AREA LINK WORKERS INSIDE OFFICE BUILDINGS AND WAREHOUSES AND SURROUND THE EARTH VIA FLOTILLAS OF SATELLITES IT'S A WORLD IN WHICH WIRELESS DEVICES COMBINE THE FUNCTIONS OF TELEPHONES AND COMPUTERS SENDING AND RECEIVING VOICE TEXT AND GRAPHICS AND SIFTING THROUGH REAMS OF INFORMATION ON BEHALF OF THEIR HUMAN MASTERS IT'S A WORLD IN WHICH WE ARE ALL REACHABLE ANYTIME ANYPLACE AND IT'S A WORLD ABOUT WHICH THE MAIN QUESTION ISN'T IF BUT WHEN QUOTE IT'S AMAZING QUOTE SAYS IRA BRODSKY PRESIDENT OF DATACOMM RESEARCH COMPANY A WILMETTE ILLINOIS TELECOMMUNICATIONS CONSULTING FIRM YOU GET THIS SENSE THAT IT'S A VOLCANO ABOUT TO ERUPT IN SOME WAYS IT ALREADY HAS ABOUT THIRTY MILLION CELLULAR PHONES ARE IN USE WORLDWIDE A NUMBER EXPECTED TO GROW TO NEARLY ONE HUNDRED MILLION BY THE YEAR TWO THOUSAND PAGERS BLANKET THE WORLD IN MANY PLACES AS A SUBSTITUTE FOR INADEQUATE OR NONEXISTENT TELEPHONE SERVICE ABOUT THREE MILLION ARE IN USE IN CHINA COMPARED WITH ONE HUNDRED THOUSAND THREE YEARS AGO BUT THE REALLY POWERFUL STUFF LIES JUST AHEAD MUCH OF THE FOUNDATION WILL BE LAID IN THE NEXT YEAR OR TWO AND THE VISION OF THE WIRELESS WORLD DESCRIBED ABOVE SHOULD BE A REALITY WITHIN FIVE TO SEVEN YEARS ALL OF WHICH LEADS TO THE FIRST QUESTION WHY NOW THE EASY ANSWER TECHNOLOGY FOR YEARS TECHNOLOGY AND COSTS HAVE CONSPIRED TO ENSURE THAT MOST COMMUNICATIONS FLOW THROUGH WIRES AND THE GADGETS WE USE TO COMMUNICATE PHONES FAXES COMPUTERS WHATEVER WERE TETHERED TO THOSE WIRES BUT ADVANCES IN MICROCHIPS AND SOFTWARE AND THE BUILDING OF SOPHISTICATED WIRELESS NETWORKS ARE QUICKLY CHANGING THE EQUATION START WITH MICROCHIPS AND SOFTWARE WHERE DEVELOPMENTS HAVE ALLOWED THE MINIATURIZATION OF CELLULAR PHONES DRIVING DOWN PRICES AND DRIVING UP PERFORMANCE MOTOROLA INCORPORATED SCHAUMBURG ILLINOIS FOR INSTANCE WAS ABLE TO PUT HUNDREDS OF RADIO PARTS ON A TWO INCH BY THREE INCH CIRCUIT BOARD IN NINETEEN EIGHTY SIX A FEAT THAT ALLOWED IT TO INTRODUCE A HAND HELD CELLULAR PHONE FOR ABOUT TWO THOUSAND FIVE HUNDRED DOLLARS NOW WITH MICROPROCESSING POWER DOUBLING EVERY EIGHTEEN TO TWENTY FOUR MONTHS A LIGHTER SMALLER MORE POWERFUL PHONE IS AVAILABLE AT ONE TENTH THE COST OF THE NINETEEN EIGHTY SIX MODEL ANOTHER BREAKTHROUGH JUST NOW TAKING HOLD USING THE LATEST MICROPROCESSORS TO MOVE CELLULAR TECHNOLOGY FROM ANALOG WHICH CONVERTS SPEECH TO SOUND WAVES TO DIGITAL WHICH CONVERTS NOT ONLY SPEECH BUT ALSO TEXT GRAPHICS AND VIDEO TO A STREAM OF ONES AND ZEROS DIGITAL INFORMATION UNLIKE SOUND WAVES CAN BE COMPRESSED OR TRANSMITTED IN BURSTS OF PACKETS GREATLY SPEEDING UP TRAFFIC IT'S ALSO FREE FROM STATIC INTERFERENCE AND TRANSMISSION ERROR THAT CURRENTLY MAKE USING A WIRELESS ANALOG MODEM DIFFICULT RIGHT NOW THE TWO DATA ONLY NATIONAL DIGITAL NETWORKS ARDIS AND RAM MOBILE DATA ARE CRUDE PREDECESSORS THE TELEX MACHINES OF THEIR ERA BUT THIS YEAR MCCAW CELLULAR COMMUNICATIONS INCORPORATED KIRKLAND WASHINGTON AMONG OTHERS WILL BE LAYING A MORE ADVANCED DIGITAL SYSTEM OF COMPUTERS AND SIGNAL PROCESSORS ON TOP OF ITS EXISTING ANALOG CELLULAR SYSTEM IN TWO TO THREE YEARS THAT WILL ALLOW USERS NATIONWIDE TO SEND BOTH THEIR VOICE AND THEIR DATA FROM A SINGLE WIRELESS DEVICE MOREOVER COMPANIES WILL START NEXT YEAR TO BUILD A NEW KIND OF MICROCELLULAR DIGITAL NETWORKS CALLED PERSONAL COMMUNICATIONS SERVICES OR P. C. S. WHICH USE LOW POWER HIGH FREQUENCY RADIO WAVES CURRENT CELLULAR TRANSMISSIONS MOVE FROM CELL TO CELL GEOGRAPHIC UNITS EACH OF WHICH IS EQUIPPED WITH A HIGH POWERED TRANSMITTER MICROCELLS WILL BE MUCH SMALLER ALLOWING THE PHONES TO USE LESS POWER AND SMALLER BATTERIES REDUCING THE SIZE AND COSTS LOW POWER ALSO MEANS THE ABILITY TO USE THE ENTIRE FREQUENCY ALL OVER AGAIN IN EACH MICROCELL TRANSMISSION AREA CURRENT CELLULAR OPERATORS MUST AVOID USING PARTS OF THEIR ALLOTTED FREQUENCY TO PREVENT RADIO INTERFERENCE WITH CALLS IN ADJOINING CELLS SOME PEOPLE THINK P. C. S. NETWORKS WILL BE UP TO TWENTY TIMES AS EFFICIENT AS EXISTING ANALOG CELLULAR SYSTEMS AND PROVIDE VASTLY BETTER SERVICES AND QUALITY BUT THE WIRELESS WORLD IS GOING TO BE WIDER AND DEEPER THAN REGIONAL DIGITAL NETWORKS A MOTOROLA BACKED VENTURE IRIDIUM INCORPORATED OF WASHINGTON IS RACING A HALF DOZEN OTHER COMPANIES TO PUT UP A WORLD WIDE WIRELESS SATELLITE SYSTEM BY NINETEEN NINETY EIGHT IRIDIUM'S SYSTEM WOULD BEAM VOICE DATA FAX OR PHYSICAL LOCATION FROM A SMALL HAND HELD SET ANYWHERE IN THE WORLD TO ANY OTHER PLACE AT THE OPPOSITE EXTREME COMPANIES SUCH AS METRICOM CORPORATION LOS GATOS CALIFORNIA HAVE DEVELOPED TRANSMITTERS AS SMALL AS BRICKS THAT CAN BE HUNG FROM UTILITY POLES CREATING WIRELESS NETWORKS INSIDE BUILDINGS ON CAMPUSES OR IN DOWNTOWN AREAS ANOTHER COMPANY IS TESTING WIRELESS CLIPBOARDS FOR NURSES YET ANOTHER IS TESTING DATA ENTRY DEVICES FOR STORE CLERKS THE DEVICES THAT WILL LINK PEOPLE TO THE NETWORKS ARE ALSO IN A PRIMITIVE STATE RIGHT NOW PEOPLE ARE JURY RIGGING PALMTOP COMPUTERS TO BULKY EXTERNAL WIRELESS MODEMS OR GROPING FOR HOURS TO GET DATA INTO THEIR NEW HAND HELD COMMUNICATORS KNOWN AS PERSONAL DIGITAL ASSISTANTS THEN HOOKING THEM UP TO SPECIAL GEAR TO SEND DATA EVEN OVER A TELEPHONE LINE BUT THIS YEAR MOTOROLA AND OTHERS WILL INTRODUCE CREDIT CARD SIZE WIRELESS MODEMS THAT SLIP INTO HAND HELD COMMUNICATORS AND PORTABLE COMPUTERS MOTOROLA WILL ALSO INTRODUCE AN IMPROVED PERSONAL COMMUNICATOR THIS SUMMER THAT WILL BE FAIRLY ADEPT AT WIRELESSLY SENDING TEXT GRAPHICS AND MAYBE EVEN VOICE PROVIDED A WIRELESS NETWORK EXISTS IN YOUR NEIGHBORHOOD IN TWO TO FOUR YEARS ANOTHER FEAT OF INTEGRATION WILL OCCUR AS THE FUNCTIONS AND CAPABILITIES OF CELLULAR PHONES PAGERS FASTER MICROPROCESSORS COLOR SCREENS AND MORE POWERFUL BATTERIES ARE BLENDED TOGETHER IN HAND HELD DEVICES COSTING FOUR HUNDRED DOLLARS TO FIVE HUNDRED DOLLARS THINGS LIKE CELLULAR PHONES AND PAGERS WILL EXIST ON SINGLE MICROCHIPS MAKING THEM EXTRAORDINARILY CHEAP AND CAPABLE OF BEING BUILT INTO A SINGLE DEVICE THAT DOES IT ALL SO MUCH FOR THE TECHNOLOGY NOW THE HARD PART WHY WOULD CONSUMERS WANT THIS SOME SKEPTICS IN FACT QUESTION WHETHER THEY WILL WE GET SO CAUGHT UP IN OUR TECHNOLOGICAL UNDERWEAR THAT WE DON'T RECOGNIZE THAT THE REST OF THE COUNTRY CAN'T RUN ITS V. C. R.S YET SAYS DON VALENTINE A VENTURE CAPITALIST AT SEQUOIA CAPITAL MENLO PARK CALIFORNIA THERE'S A LOT OF BIG COMPANY HYPE GOING ON NOT UNLIKE THE INTERACTIVE T. V. BUSINESS THE KEY ISSUE IS WHAT IS ANY OF THIS GOING TO DO THAT THE USER CAN'T DO NOW FOR WHICH HE IS GOING TO PAY A GREAT DEAL OF MONEY A MEASURE OF SKEPTICISM MAY BE JUSTIFIED BUT CONSIDER THIS MANY OF THE DOUBTERS ARE THE SAME PEOPLE WHO ASKED A FEW YEARS AGO WHY ANYONE WOULD WANT A PHONE IN HIS OR HER POCKET WHEN THERE WERE SO MANY TELEPHONE BOOTHS AROUND EVIDENCE ABOUNDS THAT PEOPLE DO WANT MOBILITY AND INSTANT ACCESS TO MESSAGES AND DATA LOOK NOT JUST AT THE EXPLOSION OF CELLULAR PHONES AND PAGERS BUT AT THE GROWTH OF PORTABLE COMPUTERS ELECTRONIC MAIL USERS AND INTERNET SUBSCRIBERS THEY WANT INFORMATION NOW ALL KINDS OF IT AND THEY WILL WANT IT A LOT MORE WHEN NEW SOFTWARE DEVICES AND NETWORKS INEVITABLY COMBINE TO CREATE VALUABLE SERVICES AND FUNCTIONS THAT DON'T EXIST TODAY LAST MONTH A CONSORTIUM CALLED GENERAL MAGIC INCORPORATED BEGAN SHIPPING SOFTWARE THAT ALLOWS USERS OF WIRELESS HAND HELD DEVICES TO CREATE ELECTRONIC AGENTS THAT WILL GO OUT ON THE WIRELESS NETWORK TO DO ALL KINDS OF TIME CONSUMING CHORES ON YOUR BEHALF NEXT YEAR FOR INSTANCE YOU WILL BE ABLE TO POST A QUOTE PERSONALITY AGENT QUOTE ON MEAD DATA CENTRAL INCORPORATED'S COMPENDIOUS NEXIS TEXT RETRIEVAL SYSTEM THAT WILL SEND YOU ARTICLES IT KNOWS YOU ARE INTERESTED IN AMERICAN TELEPHONE AND TELEGRAPH COMPANY WILL LAUNCH AN INTELLIGENT NETWORK CALLED PERSONALINK THIS SUMMER THAT WILL FILTER YOUR MESSAGES MAKING SURE YOU GET IMPORTANT ONES WHILE ELECTRONIC JUNK MAIL GOES IN THE TRASH IN FACT THE NETWORK WILL LET YOU SEND OUT ELECTRONIC REQUESTS FOR PROPOSALS THAT TURN THE CONCEPT OF JUNK MAIL ON ITS HEAD YOUR RFP COULD FOR EXAMPLE ASK THE ELECTRONIC AGENTS OF SERVICE PROVIDERS ON PERSONALINK TO RETURN BIDS FOR A TWO WEEK MAY VACATION IN HAWAII TO YOUR PERSONALINK MAILBOX MOST MARKET RESEARCHERS AND MOST PEOPLE IN GENERAL HAVEN'T SPENT A LOT OF TIME THINKING ABOUT ALL THE OTHER POSSIBILITIES OF POWERFUL NETWORKS AND POWERFUL DEVICES BUT THE USES ARE LIMITLESS TO CITE A COUPLE OF EXAMPLES QUALCOMM CORPORATION OF SAN DIEGO TRACKS FORTY THOUSAND TRUCKS VIA SATELLITE CONSTANTLY MONITORING THEIR LOCATIONS AND EVEN ENGINE CONDITIONS AND CINCINNATI MICROWAVE INCORPORATED CINCINNATI HAS DEVELOPED A WIRELESS SYSTEM FOR VENDING MACHINES TO TALK TO A COMPUTER AT HEADQUARTERS ORDERING MORE GOODS OR REPORTING VANDALISM MOTOROLA IN FACT SAYS ANYTHING THAT HAS A SWITCH INCLUDING CAR ENGINES CAN BE TURNED ON OR OFF BY A WIRELESS NETWORK AND IT PLANS TO TRY TO SELL THE IDEA TO THE MASSES WOULD PEOPLE BUY A WIRELESS DEVICE IF IT PREVENTED THE THEFT OF THEIR TAURUS AT THE SAME TIME THE WIRELESS WORLD IS GOING TO BE A HOSTILE ENVIRONMENT FOR THOSE COMPANIES THAT CAN'T ADAPT TO IT ARDIS AND RAM THE WIRELESS NETWORK PIONEERS MAY BE IN FOR A TOUGH TIME BECAUSE THEY TRANSMIT ONLY DATA AND ARE SLOW WHILE NEW DIGITAL CELLULAR TECHNOLOGY WILL CARRY VOICE AND DATA AND BE MUCH FASTER THE TELEPHONE AND CELLULAR COMPANIES HAVE INVESTED MANY BILLIONS OF DOLLARS IN OUTMODED TECHNOLOGY BUT MUST INVEST BILLIONS MORE TO CONVERT TO DIGITAL TRANSMISSION OR TO TAKE OVER THE P. C. S. NETWORKS SIMILARLY RETAILERS AND DISTRIBUTORS HAVE INVESTED BILLIONS IN BRICK AND MORTAR AND SERVICES THAT MAY BE OUTMODED WHEN VIRTUAL STORES CAN BE SHOPPED ON A WIRELESS DEVICE WHAT NEED IS THERE FOR A FILM DISTRIBUTION COMPANY WHEN AL PACINO CAN RENT SPACE ON A SATELLITE NETWORK TO BEAM HIS NEW MOVIE TO THREE THOUSAND THEATERS THESE COMPANIES ARE GOING TO HAVE TO ATTACK THEIR OWN DATED DELIVERY SYSTEMS OR SOMEBODY ELSE WILL GEORGE GILDER AUTHOR OF A BOOK DUE OUT SOON ON EMERGING WIRED AND WIRELESS NETWORKS SAYS THE HOUR OF THE CANNIBAL IS AT HAND IT'S TOO SOON TO KNOW WHO THE WINNERS AND LOSERS WILL BE AS MR. BRODSKY OF DATACOMM POINTS OUT IT WILL TAKE A WHILE MAYBE HALF A DECADE FOR WIRELESS PURVEYORS TO GET ALL THE DUCKS IN A ROW THE INDUSTRY'S BIGGEST OBSTACLE IS A LACK OF SOFTWARE NEEDED TO SIMPLIFY THE USE OF INCOMPATIBLE NETWORKS AND TO PROVIDE COMPELLING WIRELESS APPLICATIONS PROGRAMS BUT EVENTUALLY THE DEVICES AND NETWORKS WILL BE UBIQUITOUS AND THE BIGGEST ULTIMATE EFFECT MAY BE TO ODDLY INCREASE THE PACE OF SOCIETY BY LIBERATING PEOPLE FROM THE PHYSICAL CONSTRAINTS OF TIME AND SPACE MUCH OF THE WORK AND COMMUNICATING WE NOW DO WILL BE DONE BY WIRELESS SERVANTS AND ALTER EGOS WHILE WE ARE DOING SOMETHING ELSE SOMEWHERE ELSE THIS IS A REVOLUTION SAYS MR. BRODSKY THAT A LOT OF PEOPLE DON'T SEE MR. HILL CHIEF OF THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU SERVED AS CONTRIBUTING EDITOR OF THIS REPORT QUALCOMM INCORPORATED'S VICE CHAIRMAN AND CHIEF TECHNICAL OFFICER ANDREW VITERBI ESTIMATED THAT QUALCOMM'S CDMA TECHNOLOGY OFFERS A SEVENFOLD IMPROVEMENT IN WIRELESS TRANSMISSION CAPACITY OVER A RIVAL DIGITAL CELLULAR TECHNOLOGY CALLED TDMA NOT OVER EXISTING CELLULAR SYSTEMS AS REPORTED IN FRIDAY'S SPECIAL REPORT ON TELECOMMUNICATIONS SALES OF JAPANESE CARS IN WESTERN EUROPE SURGED THIRTEEN POINT FIVE PERCENT LAST MONTH OUTPERFORMING MOST EUROPEAN AND U. S. BRANDS JAPANESE BRANDS ACCOUNTED FOR ELEVEN POINT SIX PERCENT OF NEW CAR REGISTRATIONS IN WESTERN EUROPE UP FROM TEN POINT NINE PERCENT IN JANUARY NINETEEN NINETY THREE NISSAN MOTOR COMPANY AND HONDA MOTOR COMPANY WERE THE TOP PERFORMERS WITH SALES GAINS OF THIRTY ONE PERCENT AND TWENTY SIX PERCENT RESPECTIVELY THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION SAID THE FIGURES CONFIRM EUROPEAN PRODUCERS' FEARS THAT THEIR JAPANESE RIVALS AS THEY MAKE INROADS ARE LIKELY TO BE THE MAIN BENEFICIARIES OF A RECOVERY IN THE AUTO MARKET LAGGING BEHIND THE JAPANESE WERE TWO OF EUROPE'S LARGEST CAR MAKERS VOLKSWAGEN A. G. AND FIAT COMPANY V. W.'S MARKET SHARE DROPPED TO FIFTEEN POINT FIVE PERCENT FROM SIXTEEN POINT SIX PERCENT AS ITS SALES SLIPPED ZERO POINT FOUR PERCENT TO ONE HUNDRED SIXTY THOUSAND FOUR HUNDRED SIXTY UNITS FIAT'S MARKET SHARE FELL TO TWELVE POINT ONE PERCENT FROM THIRTEEN POINT TWO PERCENT WHILE SALES DROPPED ONE POINT SEVEN PERCENT BUT DAIMLER BENZ A. G.'S SALES JUMPED FIFTY FOUR PERCENT AND ROVER GROUP HOLDINGS P. L. C.'S SALES INCREASED TWENTY TWO PERCENT FRENCH COSMETICS GIANT L'OREAL S. A. SAID IN PARIS THAT ITS CONSOLIDATED REVENUE ROSE SIX POINT NINE PERCENT TO FORTY POINT ONE SIX BILLION FRANCS SIX POINT SEVEN THREE BILLION DOLLARS IN NINETEEN NINETY THREE THE GROUP ALSO SAID THAT ALTHOUGH LAST YEAR'S PROFIT HASN'T YET BEEN DETERMINED IT EXPECTS GROUP PROFIT QUOTE TO HAVE GROWN SIGNIFICANTLY MORE QUOTE THAN THE SIX POINT NINE PERCENT GAIN IN REVENUE IN NINETEEN NINETY TWO L'OREAL POSTED GROUP NET INCOME OF TWO POINT ONE NINE BILLION FRANCS ON A COMPARABLE STRUCTURE AND CONSTANT EXCHANGE RATE BASIS L'OREAL SAID CONSOLIDATED REVENUE GREW SEVEN PERCENT IT NOTED THAT CONSOLIDATED SALES FROM COSMETICS ROSE SEVEN POINT THREE PERCENT WHILE SALES FROM ITS SYNTHELABO UNIT INCREASED SIX POINT EIGHT PERCENT BOTH ON A COMPARABLE BASIS FIRSTAR CORPORATION SAID IT DEFINITIVELY AGREED TO ACQUIRE CLOSELY HELD FIRST SOUTHEAST BANKING CORPORATION FOR STOCK CURRENTLY VALUED AT FIFTY FOUR POINT SEVEN MILLION DOLLARS MILWAUKEE BASED FIRSTAR WILL ISSUE JUST OVER ONE POINT EIGHT MILLION COMMON SHARES OF ITS STOCK TO EFFECT THE ACQUISITION OF THE LAKE GENEVA WISCONSIN BANK HOLDING COMPANY THE ACQUISITION OF FIRST SOUTHEAST WHICH HAS ASSETS OF FOUR HUNDRED TWENTY THREE MILLION DOLLARS PROVIDES FIRSTAR WITH QUOTE SIGNIFICANT PRESENCE QUOTE IN THE RACINE KENOSHA AND WALWORTH COUNTY MARKETS OF WISCONSIN FIRSTAR OFFICIALS SAID FIRSTAR HAS ASSETS OF THIRTEEN POINT EIGHT BILLION DOLLARS COMPLETION OF THE TRANSACTION IS EXPECTED THIS SUMMER FOLLOWING REGULATORY APPROVAL FIRSTAR SAID IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FIRSTAR SHARES CLOSED DOWN THIRTY SEVEN POINT FIVE CENTS AT THIRTY POINT THREE SEVEN FIVE DOLLARS THE SECURITIES AND EXCHANGE COMMISSION SPURRED BY CONCERNS ABOUT POSSIBLE SELF DEALING BY MUTUAL FUND MANAGERS IS ASKING THIRTY FUND GROUPS FOR DETAILED INFORMATION ON PERSONAL TRADING BY THEIR PORTFOLIO MANAGERS THE S. E. C.'S SWEEPING REQUEST FOR TRADING DATA HAS BEEN SENT TO FUND GROUPS QUOTE OVER THE COURSE OF THE LAST FEW DAYS QUOTE SAID BARRY BARBASH DIRECTOR OF THE INVESTMENT MANAGEMENT DIVISION OF THE S. E. C. WHICH OVERSEES MUTUAL FUNDS THE INQUIRY WILL TRY TO DETERMINE WHETHER EXISTING S. E. C. RULES WHICH REQUIRE FUND GROUPS TO POLICE PERSONAL TRADING BY MANAGERS ARE ADEQUATE IF WE FOUND SOME WIDESPREAD ISSUES OF POSSIBLE ABUSE WE WOULD CONSIDER RULE MAKING OR IF NEED BE LEGISLATION TO DEAL WITH SUCH PROBLEMS MR. BARBASH SAID WHILE HE CALLED THE LATEST ACTION A KICKING OF THE TIRES OF OUR PROCEDURES AS THEY EXIST NOW HE DIDN'T RULE OUT AN EVENTUAL BAN ON PERSONAL TRADING BY FUND MANAGERS HOWEVER HE STRESSED THAT SUCH A JUDGMENT WOULD BE PREMATURE NOW MUTUAL FUND MANAGERS ARE ALLOWED TO TRADE FOR THEIR OWN ACCOUNT BUT THEY MUST REPORT THOSE TRADES TO THEIR EMPLOYERS MOREOVER THEY MUST NOT USE INSIDE INFORMATION IN TRADING OR PROFIT AT THE EXPENSE OF THEIR FUNDS' SHAREHOLDERS THESE PRACTICES AND THEIR POTENTIAL ABUSE BY MUTUAL FUND INSIDERS CAME UNDER PUBLIC SCRUTINY LAST MONTH AFTER THE INVESCO FUNDS GROUP FIRED JOHN KAWESKE A STAR PORTFOLIO MANAGER FOR ALLEGEDLY FAILING TO REPORT SOME TEN TO TWENTY PERSONAL TRADES TO START WITH THE S. E. C.'S EXAMINATION WILL TRY TO DETERMINE WHETHER MUTUAL FUND GROUPS ARE ADEQUATELY ENFORCING THE CODES OF ETHICS THAT THEY CURRENTLY ARE MANDATED TO HAVE FOR INSTANCE THE INQUIRY ASKS WHAT VIOLATIONS IN THE FUNDS' CODES OF ETHICS OCCURRED IN NINETEEN NINETY THREE AND WHAT THE FUND GROUPS DID IN RESPONSE BUT THE INQUIRY ALSO MIGHT GO FURTHER BY CHECKING FOR POSSIBLE VIOLATIONS OF INSIDER TRADING LAWS BY MUTUAL FUND MANAGERS THE LETTER TO FUND GROUPS WAS SIGNED NOT ONLY BY MR. BARBASH BUT ALSO BY WILLIAM R. MCLUCAS DIRECTOR OF THE S. E. C.'S ENFORCEMENT DIVISION THE S. E. C. WOULDN'T REVEAL WHICH FUND GROUPS ARE RECEIVING THE LETTER MR. BARBASH SAID THE THIRTY FUND GROUPS CONTACTED WEREN'T NECESSARILY THE LARGEST NOR IS THE EXAMINATION AIMED AT FUND GROUPS WHOSE MANAGERS ARE SUSPECTED OF WRONGDOING HE ADDED THE INQUIRY IS BEING SENT TO MANY DIFFERENT TYPES OF FUND GROUPS INCLUDING NEW SMALL GROUPS AS WELL AS ESTABLISHED ONES GROUPS WHOSE FUNDS ARE SOLD DIRECTLY TO INVESTORS AND GROUPS WHOSE FUNDS ARE SOLD THROUGH SALESPEOPLE THE INQUIRY IS DIRECTED AT FUND GROUPS THAT HAVEN'T RECENTLY HAD GENERAL INSPECTIONS BY THE S. E. C. MR. BARBASH SAID THE S. E. C. USUALLY SCRUTINIZES PERSONAL TRADING BY FUND EMPLOYEES IN ITS PERIODIC EXAMINATION OF FUND GROUPS BUT FOR SEVERAL YEARS THOSE EXAMINATIONS FOCUSED MORE ON MONEY MARKET FUNDS WHICH ARE LESS APT TO BE INVOLVED IN INSIDER TRADING VIOLATIONS I BELIEVE YOU WILL HEAR CRIES OF ANGUISH FROM THE FUND INDUSTRY THAT WE'RE BEING VERY INTRUSIVE THAT WE'RE RESPONDING TO NO GREAT SHOWING OF A PROBLEM MR. BARBASH SAID GIVEN THE FIDUCIARY NATURE OF THE FUND MANAGERS' JOB WE THOUGHT IT WAS APPROPRIATE TO GO OUT AND GET A PRETTY GOOD PICTURE OF WHAT'S GOING ON MEANWHILE REPRESENTATIVE EDWARD MARKEY D. MASSACHUSETTS CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE IN A STATEMENT EXPRESSED CONCERN THAT MUTUAL FUNDS ADVISED BY BANKS ARE QUOTE EXEMPT FROM CRUCIAL PROVISIONS IN THE SECURITIES LAWS DESIGNED TO LIMIT CONFLICTS OF INTEREST QUOTE MR. MARKEY HELPED SPARK THE S. E. C. INQUIRY IN A JANUARY ELEVENTH LETTER HE ADDRESSED TO S. E. C. CHAIRMAN ARTHUR LEVITT JUNIOR ASKING HIM TO REVIEW PERSONAL TRADING PRACTICES OF MUTUAL FUND MANAGERS AND REGULATIONS GOVERNING THEM MR. LEVITT'S REPLY TO MR. MARKEY INCLUDED A COPY OF THE REQUEST FOR PERSONAL TRADING INFORMATION SENT TO THE THIRTY FUND GROUPS A SENIOR AIDE TO MR. MARKEY SAID IT APPEARED THAT SOME PEOPLE AT THE S. E. C. HAVE SERIOUS DISCOMFORT WITH THE EXISTING APPROACHES AND POLICIES TO THE CONFLICT OFINTEREST QUESTION MOREOVER THE AIDE BELIEVES THE COMMISSION HAS A GENUINE INTENT TO EXAMINE THE ISSUE THOROUGHLY AND TO STRENGTHEN THE EXISTING RULES SUBSTANTIALLY IF NEEDED ROY ADAMS A LAWYER AT HELLER EHRMAN WHITE AND MCAULIFFE IN SAN FRANCISCO SAID THIS WHOLE AREA HAS RECEIVED SO MUCH ATTENTION I THINK THE S. E. C. WOULD BE REMISS IF IT DIDN'T FOLLOW UP ON ALL THE PRESS REPORTS THE EXAMINATION INDICATES THE AGENCY IS GETTING READY FOR THE INEVITABLE CONGRESSIONAL INQUIRY HE ADDED THE INVESTMENT COMPANY INSTITUTE THE NATIONAL MUTUAL FUND TRADE ASSOCIATION ALSO IS EXAMINING THE CODE OF CONDUCT POLICIES OF MUTUAL FUND COMPANIES AND THE TRADING PRACTICES OF FUND MANAGERS THE I. C. I. SAID IT IS PLEASED THAT THE S. E. C. IS SEEKING FURTHER INFORMATION REGARDING PERSONAL TRADING PRACTICES OF MUTUAL FUND PERSONNEL AMERICA WEST AIRLINES MADE THE UNUSUAL MOVE OF ASKING THE U. S. BANKRUPTCY COURT IN PHOENIX TO PROHIBIT THE SALE OR TRANSFER OF ITS SECURITIES THE CARRIER WHICH HAS BEEN OPERATING IN CHAPTER ELEVEN FOR ALMOST THREE YEARS SAID IT FILED THE MOTION TO PRESERVE THE COMPANY'S TAX BENEFITS THE MOVE DREW FIRE FROM AMERICA WEST'S EQUITY COMMITTEE WHICH SAID THE ACTION WOULD HURT THE VALUE OF THE PHOENIX BASED AIRLINE'S COMMON SHARES BOND ANALYSTS SAID THE COMPANY'S MOTION WAS DESIGNED TO PREVENT AN UNFRIENDLY INVESTOR TAKING CONTROL BY BUYING ITS DEBT SECURITIES AS FEDERATED DEPARTMENT STORES INCORPORATED HAS SOUGHT WITH R. H. MACY AND COMPANY QUOTE IT'S AN ANTITAKEOVER DEFENSE QUOTE SAID PHIL BRANNON A HIGH YIELD BOND ANALYST AT MABON SECURITIES CORPORATION AMERICA WEST HAS BEEN IN DISCUSSIONS WITH SEVERAL POSSIBLE INVESTORS INCLUDING NEW YORK MONEY MANAGER MICHAEL STEINHARDT BUT NO CLEAR LEADER HAS EMERGED AMERICA WEST SAID IT FILED THE COURT MOTION AFFECTING THE CARRIER'S GENERAL UNSECURED CLAIMS DEBENTURES AND STOCK TO PROTECT THE AIRLINE'S NET OPERATING LOSS AND TAX CREDIT CARRY FORWARDS THESE TAX ASSETS CAN BE LOST WHEN AN INVESTOR ACQUIRES AND REORGANIZES A COMPANY IN BANKRUPTCY COURT AMERICA WEST ESTIMATED THE ASSETS AT FOUR HUNDRED MILLION DOLLARS AFTER REORGANIZATION TAX EXPERTS SAID AMERICA WEST'S REQUEST WAS UNUSUAL BUT NOT UNPRECEDENTED AND THAT SOME BANKRUPTCY JUDGES HAVE GRANTED SIMILAR REQUESTS BUT BENJAMIN WAISBRAN AN ATTORNEY REPRESENTING AMERICA WEST'S EQUITY HOLDERS SAID THE MOVE IF APPROVED WOULD PREVENT THE STOCK FROM REALIZING ITS FULL VALUE AMERICA WEST DID THIS WITHOUT REGARD TO ITS PRIMARY CONSTITUENCY THE SHAREHOLDERS MR. WAISBRAN SAID BEFORE TRADING WAS HALTED YESTERDAY AMERICA WEST STOCK TRADED AT ONE POINT NINE SIX EIGHT SEVEN FIVE DOLLARS DOWN FORTY POINT SIX TWO FIVE CENTS OR SEVENTEEN POINT ONE PERCENT ON THE NASDAQ STOCK MARKET LOTS OF PROMISE LOTS OF HYPE AND LOTS OF VOLATILITY THAT ABOUT SUMS UP THE QUOTE WIRELESS QUOTE INVESTING SCENE THE SECTOR SENT ALOFT ON A WAVE OF MERGER ACTIVITY TOUCHED OFF BY AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S PROPOSED TAKEOVER OF MCCAW CELLULAR COMMUNICATIONS INCORPORATED WAS AMONG THE MOST EXPLOSIVE STOCK GROUPS LAST YEAR AND IT PROMISES TO BE A HOT TICKET THIS YEAR AND BEYOND BUT ANALYSTS WARN THAT MUCH OF THE RECENT BIG PRICE JUMP REFLECTS MERELY SPECULATIVE BETS ON COMPANIES THAT WON'T BE PROFITABLE FOR SEVERAL YEARS IF EVER THESE COMPANIES AFTER ALL ARE INVESTING HUGE SUMS OF MONEY TO DEVELOP PRODUCTS THAT ARE STILL UNPROVED BASED ON TECHNOLOGY THAT COULD QUICKLY BECOME OUTDATED AND THE MARKETS ARE TEEMING WITH COMPETITORS YOU DON'T KNOW WHAT NEW TECHNOLOGY IS COMING DOWN THE ROAD AND THERE'S ALSO THE ISSUE ABOUT HOW MUCH DEMAND THERE'S GOING TO BE FOR THE FINAL PRODUCT SAYS HERSCHEL SHOSTECK AN INDEPENDENT ANALYST BASED IN SILVER SPRING MARYLAND HE ADDS MOST OF THE STOCKS ARE GOING UP ON SPECULATIVE FRENZY NOT ON ANY FUNDAMENTALS OR A SHORT TERM CHANCE OF FUNDAMENTALS SO WHAT DO ANALYSTS RECOMMEND MR. SHOSTECK FOR ONE IS FOCUSING ON BIG MULTINATIONAL TELECOMMUNICATIONS AND TECHNOLOGY COMPANIES WHILE STEERING CLEAR OF SUCH PURE WIRELESS PLAYS AS CENCALL COMMUNICATIONS CORPORATION OF DENVER DIAL PAGE GEOTEK INDUSTRIES INCORPORATED OF MONTVALE N. J. NEXTEL COMMUNICATIONS INCORPORATED OF RUTHERFORD N. J. THE RISK INVOLVED IS GENERALLY UNRECOGNIZED WHEN IT COMES TO WIRELESS STOCKS MR. SHOSTECK SAYS THE PEOPLE WHO RECOGNIZE THIS ARE THE MOTOROLAS FOR EXAMPLE THEY WANT TO SPREAD THE RISK AND THAT'S WHY THEY'RE SUCCESSFUL NO MATTER WHAT HIT THEY TAKE THEY'RE ONLY GOING TO TAKE PART OF THE HIT AND THE SUCCESS WHEN IT COMES WILL BE SHARED WITH OTHER COMPANIES MOTOROLA INCORPORATED A SCHAUMBURG ILLINOIS LEADER IN THE MANUFACTURE OF HAND HELD CELLULAR PHONES HAS ITS FINGERS IN EVERY ASPECT OF THE WIRELESS PIE AS A PROVIDER OF BOTH TECHNOLOGY AND EQUIPMENT OTHER ANALYSTS ARE BULLISH ON BIG CELLULAR PROVIDERS OUTSIDE THE U. S. PARTICULARLY SINCE MCCAW PENDING COMPLETION OF THE A. T. AND T. MERGER WILL HAVE BEEN REMOVED AS AN INDEPENDENT U. S. PLAYER VODAFONE GROUP P. L. C. THE DOMINANT CELLULAR PROVIDER IN THE U. K. WHOSE STOCK TRADES IN THE U. S. AS AN AMERICAN DEPOSITARY RECEIPT IS THE TOP CELLULAR PICK AMONG ANALYSTS AT PAINEWEBBER INCORPORATED GOLDMAN SACHS AND COMPANY AND COWEN AND COMPANY JEFF HINES PAINEWEBBER'S SENIOR WIRELESS ANALYST IN NEW YORK SAYS VODAFONE COULD BECOME A ONE HUNDRED FIFTEEN DOLLAR TO ONE HUNDRED TWENTY FIVE DOLLAR STOCK OVER THE NEXT TWO YEARS UP FROM ITS CURRENT LEVEL OF ABOUT NINETY DOLLARS HE NOTES THAT DESPITE THE EMERGENCE OF NEW PLAYERS IN THE COMPETITIVE U. K. MARKET VODAFONE HAS BEEN ABLE TO EXPAND ITS SUBSCRIPTION BASE RAPIDLY FOR INSTANCE IT ADDED FIFTY THREE THOUSAND NET NEW SUBSCRIBERS IN DECEMBER A MONTHLY RECORD FOR THE COMPANY AND MORE THAN FOUR TIMES THE INCREASE IN DECEMBER NINETEEN NINETY TWO MR. HINES SAYS VODAFONE IS ALSO WELL POSITIONED TO COMPETE IN IMPORTANT FOREIGN MARKETS SUCH AS GERMANY SWEDEN AUSTRALIA AND HONG KONG WHERE IT PARTICIPATES THROUGH EQUITY HOLDINGS IN DOMESTIC LICENSES BEYOND THE ADVANTAGE OF HAVING A DOMINANT PRESENCE IN ITS HOME MARKET VODAFONE IS TRADING AT QUOTE ATTRACTIVE QUOTE MULTIPLES ON FUTURE EARNINGS HE SAYS ADDING QUOTE THEY ALSO HAVE NO LONG TERM DEBT AND THEY'VE BEEN PAYING DIVIDENDS QUOTE BARRY KAPLAN A MEDIA AND WIRELESS COMMUNICATIONS ANALYST AT GOLDMAN SACHS IN NEW YORK ALSO SEES A LOT MORE STEAM IN THE STOCK THE SHARES HE NOTES TRADE AT ONE OF THE LOWEST PRICE TO CASHFLOW MULTIPLES IN THE INDUSTRY AROUND TEN POINT FIVE TIMES THE SEVEN HUNDRED MILLION DOLLARS HE SEES FOR THE FISCAL YEAR ENDING MARCH NINETEEN NINETY FIVE U. S. CELLULAR COMPANIES BY COMPARISON TRADE ON AVERAGE AT FIFTEEN TO TWENTY TIMES PROJECTED CASH FLOWS ANOTHER FAVORITE STOCK AT PAINEWEBBER AND GOLDMAN SACHS IS ROGERS CANTEL MOBILE COMMUNICATIONS THE DOMINANT CELLULAR PROVIDER IN CANADA THEY'RE THE MCCAW OF CANADA WITH A NATIONWIDE LICENSE SAYS MR. HINES OF PAINEWEBBER HE SAYS THAT THE COMPANY'S MARGINS HAVE BEEN IMPROVING AND THAT HE EXPECTS TO SEE THE STOCK TRADE AS HIGH AS FORTY DOLLARS TO FORTY FIVE DOLLARS IN TWO YEARS FROM ITS CURRENT LEVEL OF ABOUT TWENTY SEVEN DOLLARS ON NASDAQ THE COMPANY IS A UNIT OF ROGERS COMMUNICATIONS CANADA'S LARGEST CABLE OPERATOR MR. KAPLAN THE GOLDMAN ANALYST SAYS CANTEL'S NATIONWIDE REACH IS A BIG PLUS IN CELLULAR OPERATING ON A NATIONWIDE LICENSE IS BETTER THAN A REGIONAL LICENSE HE SAYS THAT'S BECAUSE A NATIONWIDE NETWORK CREATES ECONOMIES OF SCALE AND MAKES IT A LOT EASIER TO COORDINATE DELIVERY OF CALLS OVER ONE SEAMLESS WEB HE SAYS MR. KAPLAN ALSO LIKES THE RECENT INITIAL PUBLIC OFFERING PACTEL CORPORATION A WIRELESS COMMUNICATIONS SPINOFF OF PACIFIC TELESIS GROUP THAT WAS PRICED AT TWENTY THREE DOLLARS IN DECEMBER AND HAS BEEN TRADING SLIGHTLY ABOVE THAT LEVEL IT HAS GREAT DOMESTIC MARKETS HE SAYS AND OUTSTANDING OPPORTUNITIES OVERSEAS ESPECIALLY IN GERMANY JAPAN AND PORTUGAL FOR NOW MESSRS KAPLAN AND HINES ARE A BIT LESS ENAMORED OF THE HIGHFLYING SHARES OF PLAYERS IN A HOT FIELD SPECIALIZED MOBILE RADIO THIS TECHNOLOGY PROMISES TO TRANSFORM LIMITED TWO WAY RADIO COMMUNICATION INTO A NETWORK THAT WOULD PROVIDE FOR TELEPHONE DATA TRANSMISSION AND PAGING CAPABILITIES THE PROBLEM MESSRS KAPLAN AND HINES SAY IS NOT THAT THE TECHNOLOGY MAY FAIL OR PROVE A FINANCIAL ROUT IT'S JUST THAT THEY VIEW THE STOCKS AS RICHLY PRICED WITH MOST HAVING DOUBLED IN PRICE LAST YEAR THEY LIKE TO RATE THESE STOCKS AS MARKET OUTPERFORMERS THIS APPLIES IN PARTICULAR TO THREE KEY MOBILE RADIO COMPANIES NEXTEL DIAL PAGE AND CENCALL COLLECTIVELY THESE COMPANIES HAVE BET BILLIONS OF DOLLARS THAT THEY CAN TRANSFORM HUMDRUM RADIO DISPATCH SERVICES INTO A WIRELESS PHONE NETWORK AND ALL BEFORE THE CELLULAR COMPANIES ADD CAPACITY TO THEIR NETWORKS BY MOVING TO AN INTEGRATED DIGITAL SYSTEM STILL MR. KAPLAN SAYS HE IS BECOMING A BIT MORE BULLISH ON THE MOBILE RADIO SECTOR QUOTE I'VE BEEN WRESTING WITH VALUATIONS QUOTE HE SAYS THE STOCKS HAVE COME DOWN A BIT RECENTLY AND GOTTEN INTRIGUING BUT HE'S RELUCTANT TO SUGGEST ANY BUYS FROM THE GROUP FOR NOW HE SAYS SIMILARLY MR. HINES IS WARMING UP TO ONE MOBILE RADIO STOCK NEXTEL ALTHOUGH HE TOO IS NOT YET RATING IT A STRONG BUY CALLING IT A MORE SPECULATIVE ATTRACTIVE MARKET OUTPERFORMER HIS CHANGE OF HEART HE SAYS STEMS FROM NEXTEL'S RECENT ACQUISITION OF MOTOROLA'S RADIO DISPATCH PROPERTIES MORE THAN TWO THOUSAND FIVE HUNDRED RADIO FREQUENCIES IN TWENTY ONE STATES FOR ABOUT ONE POINT EIGHT BILLION DOLLARS THEY NOW HAVE LICENSES THAT GIVE THEM ACCESS TO ONE HUNDRED EIGHTY MILLION PEOPLE IN THE U. S. MR. HINES SAYS THEY ARE NOW IN THE TOP TEN REGIONAL MARKETS HE IS ALSO ENCOURAGED BY THE FACT THAT THE AGREEMENT PROVIDED FOR MOTOROLA TO ACQUIRE A MINORITY TWENTY PERCENT STAKE IN NEXTEL WHAT'S MORE HE POINTS OUT THE COMPANY JUST GOT A BIG BOOST FROM NIPPON TELEGRAPH AND TELEPHONE CORPORATION OF JAPAN THE WORLD'S LARGEST TELEPHONE COMPANY N. T. T. RECENTLY AGREED TO BUY ONE POINT FIVE MILLION NEXTEL SHARES FOR AROUND SEVENTY FIVE MILLION DOLLARS AS PART OF A TECHNOLOGICAL ALLIANCE THAT WILL HELP NEXTEL BUILD THE TECHNOLOGICAL AND FINANCIAL CLOUT IT WILL NEED TO OVERCOME HURDLES OF COST TECHNOLOGY AND MARKETING QUOTE NOW THAT THEY'VE MADE THESE TRANSACTIONS AND BECAUSE THE STOCK HAS COME DOWN SOME I'M MUCH MORE POSITIVE ABOUT IT AT THESE LEVELS QUOTE MR. HINES SAYS AS REPORTED NEXTEL HAS STARTED OFFERING ON A TEST BASIS ITS INTEGRATED DIGITAL SERVICES IN SOUTHERN CALIFORNIA AND PLANS TO COVER MOST OF THE STATE BY THE MIDDLE OF THIS YEAR FOR A PLAY ON WIRELESS EQUIPMENT MANUFACTURING COMPANIES THE PAINEWEBBER ANALYST RECOMMENDS TAKING A LOOK AT ALLEN GROUP THE BEACHWOOD OHIO COMPANY IS A LEADING SUPPLIER TO THE WIRELESS TWO WAY COMMUNICATIONS MARKET MANUFACTURING MOBILE ANTENNAS BASE STATION ANTENNAS AND CELLULAR TELEPHONE AREA EXTENDERS THE GROUP IS ALREADY SUPPLYING ANTENNAS IN GERMANY FOR PERSONAL COMMUNICATIONS SERVICES A NEW WIRELESS TECHNOLOGY THAT WILL COMPETE WITH CELLULAR AND MOBILE RADIO SYSTEMS THE P. C. S. TECHNOLOGY IS BEING DEVELOPED IN THE U. S. AS WELL PENDING A GOVERNMENT AUCTION OF RADIO SPECTRUM FREQUENCIES SCHEDULED FOR THIS SPRING MR. GETLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU CONTINENTAL CORPORATION BENEFITING FROM ITS FOCUS ON SPECIALTY INSURANCE LINES AFTER WITHDRAWING FROM OTHER BUSINESSES POSTED A SIXTY NINE MILLION DOLLAR FOURTH QUARTER PROFIT COMPARED WITH A YEAR EARLIER LOSS THE NEW YORK PROPERTY AND CASUALTY INSURANCE COMPANY SAID IT HAD NET INCOME OF ONE DOLLAR AND TWENTY THREE CENTS A SHARE COMPARED WITH A YEAR EARLIER LOSS OF FIVE POINT NINE MILLION DOLLARS OR TWELVE CENTS A SHARE INCOME FROM CONTINUING OPERATIONS TOTALED TWENTY EIGHT POINT SIX MILLION DOLLARS OR FIFTY CENTS A SHARE COMPARED WITH A LOSS OF EIGHT POINT TWO MILLION DOLLARS OR SIXTEEN CENTS A SHARE THE COMPANY SAID IT ADDED THAT IT IS STILL ASSESSING ITS LOSSES FROM JANUARY'S EARTHQUAKE IN LOS ANGELES AND THE WINTER FREEZE IT EXPECTS TO RELEASE ESTIMATES OF THOSE LOSSES LATER THIS MONTH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CONTINENTAL STOCK FELL ONE POINT ONE TWO FIVE DOLLARS A SHARE OR FOUR POINT ONE PERCENT TO CLOSE AT TWENTY SIX POINT THREE SEVEN FIVE DOLLARS GTECH HOLDINGS CORPORATION THE BIG MAKER OF COMPUTERIZED STATE LOTTERY SYSTEMS WON A SEVEN YEAR TWO HUNDRED MILLION DOLLAR CONTRACT TO REPLACE FOOD STAMPS WITH AN ELECTRONIC SYSTEM IN TEXAS OPENING A POTENTIALLY HUGE NEW MARKET TEXAS IS THE FIRST STATE TO AWARD A CONTRACT FOR A STATEWIDE ELECTRONIC BENEFITS TRANSFER SYSTEM AND MANY OTHER STATES ARE EXPECTED TO IMPLEMENT SUCH SYSTEMS IN THE FUTURE VICE PRESIDENT AL GORE'S NATIONAL PERFORMANCE REVIEW RECENTLY RECOMMENDED ADOPTING ELECTRONIC SYSTEMS FOR MAKING GOVERNMENT PAYMENTS STOCK OF GTECH BASED IN WEST GREENWICH R. I. SOARED THREE DOLLARS AND TWENTY FIVE CENTS A SHARE OR ELEVEN POINT TWO PERCENT TO CLOSE AT THIRTY TWO DOLLARS AND TWENTY FIVE CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY QUOTE THIS PUTS GTECH RIGHT AT THE BEGINNING OF A NEW INDUSTRY QUOTE SAID THOMAS RYAN GAMING ANALYST WITH LADENBURG THALMANN AND COMPANY UNDER THE TEXAS PLAN WHICH WILL FIRST BE IMPLEMENTED IN THE HOUSTON AREA THIS FALL FOOD STAMP RECIPIENTS WILL BE GIVEN PLASTIC CARDS WITH MAGNETIC STRIPES ON THE BACK THAT WILL FUNCTION LIKE BANK DEBIT CARDS THE RECIPIENT WILL USE THE CARD AT A CHECKOUT COUNTER BY PUNCHING IN A PERSONAL IDENTIFICATION NUMBER THE SYSTEM WILL REFUSE TO PAY FOR NONFOOD ITEMS SUCH AS CIGARETTES NAPKINS AND HOUSEHOLD CLEANERS JOHN SHARP TEXAS STATE COMPTROLLER SAID THE SYSTEM WILL CUT COSTS BY REDUCING FRAUD AND STOLEN FOOD STAMPS IT WILL ALSO STOP THIEVES FROM ROBBING PEOPLE OF THE STAMPS AND KEEP THEM FROM BEING SOLD FOR DRUGS OR LIQUOR THE EBT PROGRAM WILL REDUCE FOOD STAMP COSTS BY ELIMINATING PRINTING WAREHOUSING AND MAILING PAPER COUPONS HE SAID GTECH OPERATES THE STATE LOTTERY SYSTEM IN TEXAS AND IS THE LEADING VENDOR OF SUCH SYSTEMS NATIONALLY ROBERT J. RENDINE MANAGER OF PUBLIC AFFAIRS FOR GTECH SAID THIS FITS NICELY WITH WHAT WE DO WE DESIGN INSTALL AND OPERATE TRANSACTION PROCESSING SYSTEMS FOR GOVERNMENTS HE ADDED WE THINK THERE IS A SIGNIFICANT OPPORTUNITY FOR STRATEGIC GROWTH INCLUDING ADDING OTHER BENEFIT SERVICES AT THE TERMINALS ONCE THEY'RE INSTALLED MR. RENDINE SAID NEW YORK STATE WHERE GTECH ALREADY RUNS THE LOTTERY IS EXPECTED TO SOON CONSIDER BIDS FOR AN ELECTRONIC BENEFITS SYSTEM HE SAID THE BUSINESS CARRIES THE SAME TYPE OF PROFIT MARGINS AS THE LOTTERY INDUSTRY TEXAS SAID THAT GTECH BEAT OUT TWO BIDDING GROUPS ONE COMPOSED OF DELUXE DATA CORPORATION AND ELECTRONIC DATA SYSTEMS A GENERAL MOTORS CORPORATION SUBSIDIARY AND THE OTHER INCLUDING CITICORP AND LOCKHEED CORPORATION THE GTECH SYSTEM WHEN COMPLETED WILL INCLUDE SIXTEEN THOUSAND RETAILERS AROUND TEXAS AND SERVE TWO POINT SEVEN MILLION FOOD STAMP RECIPIENTS GTECH ENTERED THE BENEFITS BUSINESS IN NINETEEN NINETY TWO BY ACQUIRING THE PARIMUTUEL WAGERING BUSINESS OF GENERAL INSTRUMENT CORPORATION THAT BUSINESS RUNS AN ELECTRONIC SYSTEM FOR AUTHORIZING FOOD STAMP ISSUANCE IN NEW YORK CITY ALTHOUGH IT DOESN'T USE THE DEBIT CARD MODEL MR. RYAN THE GAMING ANALYST SAID QUOTE IF THIS WORKS IN TEXAS IT CAN WORK ANYWHERE AND GTECH WILL BE SEEN AS THE FRONT RUNNER IN THE INDUSTRY QUOTE HE SAID THE BUSINESS ISN'T LIKELY TO CONTRIBUTE TO EARNINGS UNTIL THE FISCAL YEAR ENDING IN FEBRUARY NINETEEN NINETY SIX IN THE NINE MONTHS ENDED NOVEMBER TWENTY SEVENTH GTECH REPORTED NET INCOME OF FORTY FOUR POINT ONE MILLION DOLLARS OR ONE DOLLAR AND ONE CENT A SHARE ON REVENUE OF FOUR HUNDRED SIXTY NINE POINT TWO MILLION DOLLARS TEXAS ISN'T THE FIRST STATE TO AWARD A CONTRACT FOR A STATEWIDE ELECTRONIC BENEFITS TRANSFER SYSTEM AS WAS STATED IN AN ARTICLE FRIDAY MARYLAND ALREADY HAS A SYSTEM THE CLAIM THAT TEXAS WAS FIRST WAS MADE BY A SPOKESMAN FOR GTECH HOLDINGS CORPORATION THE CONTRACT WINNER PRESIDENT CLINTON SAID HE INTENDS TO NOMINATE SECURITIES LAWYER STEVEN WALLMAN TO THE SECURITIES AND EXCHANGE COMMISSION FILLING A COMMISSIONER'S SEAT THAT HAS BEEN VACANT NEARLY TWO YEARS MR. WALLMAN FORTY YEARS OLD IS A PARTNER IN THE WASHINGTON LAW FIRM COVINGTON AND BURLING HE SAID HE WOULDN'T HAVE ANY COMMENT UNTIL HE IS CONFIRMED BY THE SENATE IN A STATEMENT MR. CLINTON SAID MR. WALLMAN QUOTE WILL MAKE AN EXCELLENT ADDITION TO THE S. E. C. QUOTE ADDING THAT THE INTENDED NOMINEE QUOTE HAS LONG BEEN RECOGNIZED AS A LEADING EXPERT ON SECURITIES LAW AND HAS BEEN ACTIVELY ENGAGED IN THE FIGHT FOR SENSIBLE REGULATION IN THAT AREA QUOTE AMONG OTHER THINGS MR. WALLMAN DRAFTED LEGISLATION THAT WAS ADOPTED IN PENNSYLVANIA AND OHIO TO HELP DETER CORPORATE RAIDERS HE ALSO HAS REPRESENTED THE NATIONAL FOOTBALL LEAGUE IN CORPORATE MATTERS AT THE N. F. L. COMMISSIONER PAUL TAGLIABUE SAID MR. WALLMAN IS UNIQUELY QUALIFIED WITH VERY BROAD EXPERIENCE THAT HAS EARNED HIM GREAT SUPPORT FROM DIVERSE LABOR INVESTOR AND BUSINESS GROUPS MR. WALLMAN'S CONFIRMATION WOULD GIVE THE S. E. C. ITS FIRST FULL COMPLEMENT OF FIVE MEMBERS SINCE EARLY NINETEEN NINETY TWO WHEN COMMISSIONER EDWARD FLEISCHMAN LEFT S. E. C. CHAIRMAN ARTHUR LEVITT SAID HE IS LOOKING FORWARD TO WORKING WITH STEVE HIS EXPERIENCE WILL MAKE A VALUABLE CONTRIBUTION TO THE COMMISSION'S EFFORTS TO PROTECT AMERICAN INVESTORS KOO KOO ROO INCORPORATED WILL POST A NET LOSS FOR THE SECOND QUARTER ENDED DECEMBER TWENTY EIGHTH OF AROUND FOUR HUNDRED EIGHTEEN THOUSAND DOLLARS OR SEVEN CENTS A SHARE COMPARED WITH A NET LOSS OF THREE HUNDRED SEVENTY THREE THOUSAND NINE HUNDRED SIXTY SEVEN DOLLARS OR ELEVEN CENTS A SHARE ON ABOUT HALF AS MANY SHARES OUTSTANDING IN THE YEAR EARLIER PERIOD COMPANY EXECUTIVES SAID BUT REVENUE FOR THE THIRTEEN WEEKS CLIMBED TO MORE THAN ONE POINT THREE MILLION DOLLARS FROM NINE HUNDRED THIRTY EIGHT THOUSAND THREE HUNDRED SIXTY SIX DOLLARS A YEAR AGO EVEN THOUGH THE COMPANY HAD ONE LESS RESTAURANT IN OPERATION PRESIDENT MICHAEL MOOSLIN SAID TOTAL SHARES OUTSTANDING ROSE TO SIX POINT TWO MILLION IN THE QUARTER FROM THREE POINT FOUR MILLION A YEAR EARLIER QUOTE OUR STOCK ISN'T AN EARNINGS PLAY NOW IT'S A GROWTH PLAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER KEN BERG A FORMER MORTGAGE BANKER TURNED RESTAURATEUR SAID IN AN INTERVIEW AT THE COMPANY'S WEST LOS ANGELES RESTAURANT WHERE WEEKLY SALES HAVE INCREASED ONE HUNDRED SEVENTEEN PERCENT FROM A YEAR EARLIER THROUGHOUT THE COMPANY SAMESTORE SALES ARE RUNNING MORE THAN FIFTY PERCENT AHEAD OF LAST YEAR HE SAID MR. BERG HOPES KOO KOO ROO A FAST FOOD CHAIN SERVING SKINLESS FLAME BROILED CHICKEN IN A DELI TYPE SETTING WILL EVENTUALLY BE A CHALLENGER TO THE SUCCESSFUL BOSTON CHICKEN RESTAURANTS HE SAID HIS CONSERVATIVE GOAL IS TO HAVE ONE HUNDRED KOO KOO ROO FRANCHISES BY THE END OF THE YEAR AND TO HAVE ONE THOUSAND RESTAURANTS UP AND RUNNING IN FIVE YEARS THE NET LOSS FOR THE SECOND QUARTER HE SAID STEMMED FROM START UP COSTS ASSOCIATED WITH SERVICING ITS NEW FRANCHISE OPERATIONS THE COMPANY CURRENTLY HAS SEVEN RESTAURANTS IN SOUTHERN CALIFORNIA NEW JERSEY AND MIAMI IT IS CONSTRUCTING THREE MORE AND HAS SOLD OR IS IN THE PROCESS OF SELLING FRANCHISE TERRITORIES IN FLORIDA ORANGE COUNTY CALIFORNIA SAN FRANCISCO CLEVELAND PITTSBURGH PHOENIX SCOTTSDALE ARIZONA SEATTLE AND DENVER MR. BERG SAID KOO KOO ROO HAS BEEN CONVERTING ALL OF ITS RESTAURANTS TO A CALIFORNIA KITCHEN CONCEPT OFFERING LOW FAT FOODS LIKE HANDCARVED TURKEY CUCUMBER SALAD BAKED YAMS AND STEAMED VEGETABLES LAW FIRMS PREPARING TO DO BUSINESS IN VIETNAM ARE WARNING CORPORATE CLIENTS TO GO SLOWLY AND TO BEWARE THE PITFALLS ENCOUNTERED BY U. S. COMPANIES IN CHINA AND EASTERN EUROPE IN RECENT YEARS THE VIETNAMESE LEGAL SYSTEM HAS JUST BEGUN TO GRAPPLE WITH BUSINESS ISSUES AND HAS NO COMPREHENSIVE COMMERCIAL CODE U. S. LAWYERS WARN ITS BANKRUPTCY LAW ENVIRONMENTAL LAW AND INSURANCE LAW WERE ADOPTED JUST LAST YEAR FROM OWNERSHIP DISPUTES TO TAX ISSUES IT REMAINS UNCLEAR HOW U. S. INTERESTS WILL BE TREATED IN MANY OF THE PROJECTS THAT AMERICAN BUSINESSES ENVISION NOW THAT THE TRADE EMBARGO HAS BEEN LIFTED QUOTE THE MAJOR PITFALL IS WHAT IS THE LAW IN VIETNAM QUOTE SAYS JAMES HURLOCK CHAIRMAN OF WHITE AND CASE A NEW YORK LAW FIRM PLANNING TO OPEN OFFICES IN HANOI AND HO CHI MINH CITY THIS YEAR THE ANSWER MAY NOT COME ANY TIME SOON LIKE ALL UNDERDEVELOPED COUNTRIES THAT OPEN UP SUDDENLY LIKE THIS THERE IS A CHANCE YOU WON'T KNOW WHAT THE RULES ARE FOR SEVERAL YEARS SAYS ANTHONY WILLIAMS CHAIRMAN OF COUDERT BROTHERS AN INTERNATIONAL LAW FIRM BASED IN NEW YORK MR. WILLIAMS NOTES THAT IN CHINA FOR INSTANCE DEVELOPMENTS IN TRADEMARK LAW HAVE ONLY RECENTLY BEGUN TO PROVIDE THE PROTECTION THAT U. S. COMPANIES WANT MR. WILLIAMS COMPARES THE FLURRY OF INTEREST IN VIETNAM TO THE EARLY ENTHUSIASM THAT FOLLOWED THE FALL OF THE BERLIN WALL A MAJOR MANUFACTURING CLIENT WAS PREPARING TO BUY A STATE OWNED FACILITY IN THE FORMER EAST GERMANY WITH THE UNDERSTANDING THAT THE GOVERNMENT WOULD PROTECT THE BUYER FROM ANY ENVIRONMENTAL LIABILITY AFTER MONTHS OF NEGOTIATING THAT PROMISED PROTECTION DISAPPEARED MAKING THE PROJECT UNWORKABLE WE'RE ADVISING CLIENTS TO PROCEED VERY CAUTIOUSLY THROUGH THE FROTH AND THERE IS GOING TO BE A LOT OF FROTH BEFORE GETTING TO THE ALE MR. WILLIAMS SAYS CERTAINLY NO ONE DOUBTS THE ECONOMIC POTENTIAL OF THE SOUTHEAST ASIAN NATION ITS POPULATION OF SEVENTY TWO MILLION MAKES IT A SIZABLE MARKET BIGGER THAN THAILAND OR THE PHILIPPINES ITS COMMUNIST GOVERNMENT WANTS TO SPUR BUSINESS AND FOREIGN TRADE AND AFTER YEARS OF WAR AND NEGLECT THE NATION HAS A DESPERATE NEED FOR FACTORIES ROADS AND OTHER PROJECTS ALL OF WHICH COULD GENERATE MILLIONS OF DOLLARS IN WORK FOR FOREIGN COMPANIES VIETNAM'S INTEREST IN ENCOURAGING FOREIGN INVESTMENT IS REFLECTED IN THE RECENT ENACTMENT OF A NUMBER OF LAWS SEEKING TO FACILITATE COMMERCE BUT SAYS IRWIN JAY ROBINSON PRESIDENT OF THE VIETNAM AMERICAN CHAMBER OF COMMERCE WHICH PROMOTES TRADE BETWEEN THE TWO COUNTRIES FROM AN AMERICAN POINT OF VIEW THOSE LAWS LEAVE A LOT TO BE DESIRED FOR INSTANCE THE VIETNAMESE BANKRUPTCY LAW WHICH TAKES EFFECT IN JULY DOESN'T CLARIFY JUST WHAT PROTECTION FOREIGN CREDITORS WILL HAVE MR. ROBINSON A PARTNER AT NEW YORK LAW FIRM PHILLIPS NIZER BENJAMIN KRIM AND BALLON SAYS THE VIETNAMESE BUSINESS LAWS TEND TO BE SO SPECIFIC THAT THEY ARE LIKELY TO PROVE INFLEXIBLE IN MANY SITUATIONS VIETNAM LAW ALSO ENSURES THAT IN FOREIGN JOINT VENTURES VIETNAMESE PARTNERS HAVE VETO POWER IN MANY DECISIONS EVEN WHEN THEY HAVE A MINORITY STAKE BECAUSE VIETNAM HAS NO BODY OF JUDGEMADE CASE LAW ON BUSINESS DISPUTES AND BECAUSE MANY BUSINESS ISSUES ARE NEW TO ITS LEGAL SYSTEM U. S. LAWYERS SAY CLIENTS WILL WANT TO AVOID GOING TO COURT THERE INSTEAD U. S. BUSINESSES ARE BEING URGED TO RELY ON DETAILED CONTRACTS THAT SPELL OUT HOW THE PARTIES WILL RESOLVE ANY DISAGREEMENTS THAT ARISE LAWYERS SAY THAT ARBITRATION USUALLY THROUGH THE INTERNATIONAL CHAMBER OF COMMERCE IS FAVORED BY THE VIETNAMESE GOVERNMENT AS A WAY TO RESOLVE COMMERCIAL DISAGREEMENTS WITH FOREIGN INVESTORS DESPITE THEIR QUALMS U. S. LAW FIRMS SEE A RISING DEMAND FOR THEIR OWN SERVICES IN VIETNAM ALTHOUGH AMERICAN LAWYERS CAN'T PRACTICE IN VIETNAM COURTS THEY CAN ADVISE CLIENTS ON WHAT TERMS THE LAWS MAY IMPOSE ON PROJECTS SUCH AS IN WHAT WAY PROFITS CAN BE SPLIT WITH VIETNAMESE PARTNERS AND HOW U. S. PARTNERS' EARNINGS WILL BE TAXED IN VIETNAM U. S. REGULATORY LAWYERS ALSO ARE HELPING CLIENTS DETERMINE WHETHER THEIR PLANS WILL RUN AFOUL OF THE U. S. TRADE RESTRICTIONS THAT STILL APPLY TO VIETNAM THOUGH THE EMBARGO HAS BEEN LIFTED VIETNAM IS EXPECTED TO BE PLACED IN THE SAME CATEGORY OF TRADING PARTNERS AS CAMBODIA AND ALBANIA MEANING CERTAIN HIGH TECH EQUIPMENT COULDN'T BE SHIPPED THERE AND PRODUCTS SENT BACK TO THE U. S. WOULD FACE HIGH TARIFFS MANUFACTURING PROPOSALS WHICH COULD BENEFIT FROM VIETNAM'S LOW LABOR COSTS ARE HAMPERED BY THE NEED FOR TRANSPORTATION AND ELECTRIC POWER IMPROVEMENTS FOR NOW THE SAFEST BUSINESS OPPORTUNITIES FOR FOREIGN COMPANIES APPEAR TO BE INFRASTRUCTURE PROJECTS SUCH AS PLANS TO IMPROVE VIETNAM'S MILLIONS OF MILES OF DAMAGED ROADS AS WELL AS ITS HARBORS AND PORTS THE VIETNAMESE GOVERNMENT IS IN LINE TO RECEIVE HUNDREDS OF MILLIONS OF DOLLARS IN LOANS FROM INTERNATIONAL AGENCIES FOR SUCH WORK JEFFREY SNYDER AN ATTORNEY IN THE WASHINGTON OFFICE OF GRAHAM AND JAMES A LAW FIRM WITH AN AFFILIATE IN VIETNAM SAYS HE HOPES U. S. COMPANIES WILL BE MORE REALISTIC THAN THEY HAVE BEEN IN SOME RECENT FOREIGN VENTURES SURE THE EMBARGO IS GONE AND THERE ARE TREMENDOUS OPPORTUNITIES HE SAYS BUT WE ARE AT A VERY EARLY STAGE IN THE ECONOMIC DEVELOPMENT BETWEEN THE TWO COUNTRIES DAVID L. PAUL THE FORMER CHIEF EXECUTIVE OF FAILED CENTRUST BANK IN MIAMI PLEADED GUILTY TO THE U. S. GOVERNMENT'S REMAINING TWENTY NINE CHARGES AGAINST HIM MR. PAUL AGE FIFTY FOUR WAS CONVICTED IN DECEMBER OF SIXTY EIGHT COUNTS OF FRAUD MOST INVOLVING ALLEGATIONS THAT HE SIPHONED THREE POINT TWO MILLION DOLLARS FROM CENTRUST AND SPENT IT ON HIS YACHT AND HIS HOMES DURING THE NINETEEN EIGHTIES A SECOND TRIAL WAS SET TO START EARLY THIS YEAR ON TWENTY NINE RACKETEERING AND SECURITIES COUNTS STEMMING FROM CENTRUST'S DEALINGS WITH AMONG OTHERS THE ROGUE BANK OF CREDIT AND COMMERCE INTERNATIONAL NEITHER MR. PAUL NOR HIS ATTORNEYS WERE AVAILABLE FOR COMMENT YESTERDAY MR. PAUL'S CASE IS THE FIRST CONVICTION OF A U. S. BANKER GROWING OUT OF THE B. C. C. I. INVESTIGATIONS IN THIS COUNTRY SAID ASSISTANT U. S. ATTORNEY ALLAN J. SULLIVAN FORD MOTOR COMPANY SAID ITS SALARIED AND HOURLY WORKERS WILL RECEIVE PROFIT SHARING CHECKS AVERAGING ONE THOUSAND THREE HUNDRED FIFTY DOLLARS ON MARCH NINTH THE PAYOUT TO ABOUT ONE HUNDRED FIFTY TWO THOUSAND ELIGIBLE EMPLOYEES WILL BE SLIGHTLY HIGHER THAN NINETEEN NINETY'S AVERAGE ONE THOUSAND TWENTY FIVE DOLLARS AND IS THE EIGHTH PROFIT SHARING PAYMENT FOR THE DEARBORN MICHIGAN AUTO MAKER THE LAST TIME FORD DISTRIBUTED PROFIT SHARING CHECKS WAS IN NINETEEN NINETY BASED ON NINETEEN EIGHTY NINE PROFIT OF THREE POINT EIGHT THREE BILLION DOLLARS CHRYSLER CORPORATION SAID ITS WORKERS WILL RECEIVE PROFIT SHARING CHECKS AVERAGING FOUR THOUSAND THREE HUNDRED DOLLARS GENERAL MOTORS CORPORATION SAID IT WON'T PAY BONUSES OR PROFIT SHARING DISTRIBUTIONS TO EXECUTIVES OR WORKERS THOUGH IT HAD AN OVERALL PROFIT IN NINETEEN NINETY THREE FORD'S PROFIT SHARING PROGRAM IS BASED ON EARNINGS IN THE U. S. THIS YEAR'S PAYOUT IS BASED ON FORD'S NINETEEN NINETY THREE PROFIT OF TWO POINT FIVE BILLION DOLLARS WHEN WANDEE SIDHIKONGSAK AND HER HUSBAND MOVED INTO A NEW APARTMENT HERE IN NINETEEN NINETY ONE THEY GOT THE WATER AND ELECTRICITY TURNED ON RIGHT AWAY TELEPHONE SERVICE WAS A DIFFERENT STORY THE COUPLE WAITED FOR A YEAR HOPING TO GET ONE OF THAILAND'S PRECIOUS PHONE LINES BUT THEY FINALLY GAVE UP AND BOUGHT A CELLULAR PHONE WHICH THEY STARTED USING IMMEDIATELY QUOTE THERE IS NO CHOICE QUOTE SAYS MRS. WANDEE A THIRTY YEAR OLD BUYER FOR AMERICAN STANDARD COMPANY IT'S JUST TOO LONG TO KEEP WAITING AS MORE PEOPLE DRAW THE SAME CONCLUSION THAILAND AND MANY OTHER DEVELOPING COUNTRIES ARE MOVING RAPIDLY INTO WIRELESS TELECOMMUNICATIONS BEFORE THEY ARE EVEN CLOSE TO FULLY WIRED FOR CONVENTIONAL PHONE SERVICE WHILE CELLULAR TECHNOLOGY REMAINS A LUXURY IN THE WEST PEOPLE IN THESE NATIONS ARE USING IT TO CONNECT TO THE WORLD AND TO ONE ANOTHER MORE EXTENSIVELY MORE QUICKLY AND MORE ECONOMICALLY THAN THEY COULD THROUGH THE LAYING OF CABLE TO EVERY OFFICE AND HOUSEHOLD THE TECHNOLOGY IS THE DRIVING FORCE SAYS PRASIT PRAPINMONGKOLKARN DIRECTOR OF TELECOMMUNICATIONS RESEARCH AT CHULALONGKORN UNIVERSITY IN BANGKOK THE NEW SYSTEMS ARE MUCH QUICKER TO INSTALL AND CAN ALLOW THIRD WORLD COUNTRIES TO CATCH UP VERY FAST WHAT'S HAPPENING IN THAILAND PROVIDES AN OUTLINE OF CHANGES UNFOLDING ELSEWHERE THOUGH THE DETAILS MAY VARY THAILAND HAS A MODERATE NUMBER OF CONVENTIONAL PHONE LINES FOR INSTANCE BUT SOME OF ITS LESS DEVELOPED NEIGHBORS ARE MAKING THE JUMP TO CELLULAR COMMUNICATIONS MORE DIRECTLY BYPASSING TRADITIONAL LINES ALMOST ENTIRELY EN ROUTE TO THE WIRELESS AGE IN THAILAND THE SUPPLY OF REGULAR LINES HAS BEEN FLAT FOR YEARS BECAUSE THE COUNTRY'S UNSTABLE COALITION GOVERNMENTS HAVE HAD TROUBLE AGREEING ON INFRASTRUCTURE PROJECTS AFTER EXTENDED HAGGLING THE GOVERNMENT LAST YEAR ALLOWED TWO PRIVATE COMPANIES TO BEGIN INSTALLING THREE MILLION LINES BUT EVEN WHEN THE PROJECT IS COMPLETED IN NINETEEN NINETY SEVEN IT WILL LEAVE THAILAND WHOSE POPULATION TODAY STANDS AT FIFTY SEVEN MILLION WITH JUST FOUR POINT SIX MILLION LINES WHILE THE SUPPLY OF LINES HAS BEEN STAGNANT THAILAND'S RAPID ECONOMIC GROWTH SINCE NINETEEN EIGHTY EIGHT HAS SENT DEMAND SURGING THE WAITING LIST FOR PHONE LINES STOOD AT ONE POINT FIVE MILLION IN THE SECOND HALF OF LAST YEAR AND THE WAITING TIME FOR INSTALLATION WAS AS MUCH AS THREE YEARS SAYS CHESADA LOHAUNCHIT MANAGING DIRECTOR FOR TARA SIAM BUSINESS INFORMATION LIMITED A RESEARCH FIRM IN BANGKOK THE THAI GOVERNMENT FIGURED THAT CELLULAR PHONES ALREADY POPULAR IN MORE ADVANCED ASIAN CAPITALS LIKE HONG KONG AND SINGAPORE COULD EASE THAILAND'S SHORTAGE OF CONVENTIONAL LINES CELLULAR COMPANIES WOULD ONLY HAVE TO INSTALL TRANSMISSION STATIONS IN KEY AREAS RATHER THAN LAY NEW PHONE LINES AND ROUTE THEM THROUGH ALREADY INADEQUATE AND AGING SWITCHING STATIONS THAT MAKES CELLULAR SYSTEMS CHEAPER JUST ABOUT EVERYWHERE IN THAILAND THOUGH THE COST SAVINGS ARE BIGGEST IN PLACES WITH LITTLE OR NO CONVENTIONAL TELEPHONE INFRASTRUCTURE AFTER A YEAR OF WIRELESS STRUGGLES BY THAILAND'S TWO STATE OWNED PHONE ENTERPRISES CELLULAR PHONES TOOK OFF IN NINETEEN EIGHTY NINE WHEN THE GOVERNMENT GRANTED TWO LONGTERM PRIVATE CONCESSIONS TO THAI COMPANIES ADVANCED INFO SERVICES PCL A PUBLICLY LISTED SUBSIDIARY OF SHINAWATRA COMPUTER AND COMMUNICATIONS COMPANY AND TOTAL ACCESS COMMUNICATIONS COMPANY A SUBSIDIARY OF UNITED COMMUNICATIONS INDUSTRY PCL WHICH WAS EXPECTED TO BE LISTED LAST MONTH ON THE STOCK EXCHANGE OF THAILAND IN JUST SEVEN YEARS CELLULAR PHONES HAVE GRABBED TWENTY PERCENT OF ALL PHONE SERVICE IN THE COUNTRY THEIR NUMBERS JUMPED MORE THAN SIXTY PERCENT LAST YEAR TO FOUR HUNDRED FIFTY SIX THOUSAND THREE HUNDRED SAYS PHATRA THANAKIT COMPANY A THAI BROKERAGE COMPANY AND THAILAND WILL ADD TWO HUNDRED THOUSAND CELLULAR PHONES A YEAR THROUGH NINETEEN NINETY SIX ACCORDING TO S. G. WARBURG GROUP P. L. C. A BRITISH MERCHANT BANK THE TWO PRIVATE NETWORKS ARE HOOKING UP NEW CUSTOMERS AS RAPIDLY AS THEY CAN WE CANNOT BUILD THE INFRASTRUCTURE FAST ENOUGH TO KEEP UP WITH THE DEMAND SAYS BOONCHAI BENCHARONGKUL CHIEF EXECUTIVE OFFICER OF UNITED COMMUNICATIONS SO FAR THOUGH WAITING LISTS FOR CELLULAR SERVICE ARE SHORT FALLING PRICES FOR BOTH SERVICE AND EQUIPMENT ARE FEEDING THE GROWTH COMPETITION BETWEEN THAILAND'S TWO PRIVATE SECTOR CELLULAR SERVICE PROVIDERS HAS BEEN INTENSE REDUCING CONNECTION FEES TO SIXTEEN DOLLARS FROM ABOUT FIVE HUNDRED DOLLARS IN NINETEEN EIGHTY NINE A FRACTION OF THE OFFICIAL TWO HUNDRED DOLLARS INSTALLATION CHARGE FOR A PHONE LINE MOST CELLULAR CUSTOMERS NOW PAY ABOUT THE SAME IN MONTHLY AND PERMINUTE CHARGES AS DO PEOPLE WITH REGULAR PHONES PRICES OF CELLULAR PHONES ALSO HAVE PLUNGED BY TWO THIRDS SINCE NINETEEN EIGHTY NINE TO AN AVERAGE OF ABOUT ONE THOUSAND TWO HUNDRED DOLLARS A BIT LESS THAN THE GOING BLACK MARKET RATE OF ONE THOUSAND FOUR HUNDRED DOLLARS FOR CONVENTIONAL PHONE LINES DESPITE THE JUMP LAST YEAR IN UNIT SALES OF CELLULAR PHONES MAKERS SAY REVENUE WAS FLAT BECAUSE OF THE PRICE CUTTING WE SEE STRONG GROWTH BUT IT IS A DIFFICULT MARKET SAYS ERIK VON ESSEN MANAGER OF THE BANGKOK OFFICE OF THE SWEDISH COMPANY TELEFON A. B. LM ERICSSON'S LOCAL SUBSIDIARY IN MANY PLACES IN ASIA CELLULAR PHONES ARE MORE OF A STATUS SYMBOL THAN A BUSINESS TOOL NOT SO IN THAILAND BUSINESSPEOPLE AND ANALYSTS SAY THE COUNTRY COULDN'T HAVE SUSTAINED ITS RECENT RAPID ECONOMIC GROWTH WITHOUT CELLULAR PHONES ASAWIN CHINTAKANANDA DEPUTY CHIEF EXECUTIVE OFFICER OF SAHAVIRAYA GROUP A THAI COMPANY THAT MAKES STEEL AND OFFICE PRODUCTS SAYS WORK ON A NEW STEEL FACTORY THE COMPANY IS BUILDING IN SOUTHERN THAILAND WOULD HAVE SLOWED MARKEDLY WITHOUT CELLULAR PHONES THAILAND'S CONVENTIONAL PHONE SYSTEM BUILT ON DATED TECHNOLOGY REQUIRES OPERATOR ASSISTANCE FOR MANY DOMESTIC LONG DISTANCE CALLS AND LONG DISTANCE LINES BECOME JAMMED NEARLY EVERY DAY DOCTOR ASAWIN SAYS IT IS CHEAPER AND EASIER FOR HIM TO CALL THE FACTORY SITE BY CELLULAR PHONE THAN ON THE REGULAR PHONE IN HIS OFFICE QUOTE THE MOBILE PHONE IS NOT A LUXURY IT'S A NECESSITY QUOTE HE SAYS BANGKOK'S HORRENDOUS VEHICULAR TRAFFIC AMPLIFIES THE NEED FOR RELIABLE COMMUNICATIONS SALESPEOPLE JUST CAN'T PHYSICALLY GET TO ALL THE PLACES THEY NEED TO GO SAYS THOMAS BEDDOW MANAGING DIRECTOR FOR MINNESOTA MINING AND MANUFACTURING COMPANY'S THAI SUBSIDIARY HE ARRANGED FOR THE COMPANY TO PROVIDE INTEREST FREE LOANS FOR ALL ITS SALES STAFF TO BUY CELLULAR PHONES WANPAN PUKWILAIKIAT A THIRTY FOUR YEAR OLD ACCOUNTANT BOUGHT A CELLULAR PHONE LAST MONTH OUT OF PERSONAL NECESSITY MS. WANPAN OFTEN SPENDS MORE THAN TWO HOURS COMMUTING EACH WAY AND DOESN'T ARRIVE HOME UNTIL LATE IN THE EVENING BECAUSE OF HER TIME SPENT IN TRAFFIC AND A RECENT JOB CHANGE PEOPLE HAD TROUBLE REACHING HER AND SHE LOST TOUCH WITH FAMILY AND FRIENDS NOW SHE CARRIES THE CELLULAR PHONE AND A PAGER EVERYWHERE IT'S IMPOSSIBLE TO SPEAK WITH ANYONE WITHOUT IT MS. WANPAN SAYS BUT IF CELLULAR PHONES WEREN'T ESSENTIAL MR. BEDDOW SAYS MANY PEOPLE WOULD SCRAP THEM BECAUSE THE QUALITY OF SERVICE IS SPOTTY HE AND HIS FAMILY WHO LIVE IN NORTHWESTERN BANGKOK HAVE PHONES FROM THREE DIFFERENT CELLULAR NETWORKS BUT THEY ARE LUCKY IF THEY CAN GET ONE OF THE THREE TO CONNECT AT ANY GIVEN TIME ONCE ON THE LINE MR. BEDDOW SAYS HE MUST USUALLY TALK OVER OTHER CONVERSATIONS THE SERVICE PROVIDERS PROMISE IMPROVEMENTS BY JUNE ADVANCED INFO SERVICES AND TOTAL ACCESS COMMUNICATIONS WILL BEGIN OFFERING DIGITAL AS WELL AS ANALOG LINES THEY SAY THE DIGITAL LINES WHICH WILL COST SUBSCRIBERS MORE TO USE WILL CLEAR UP MUCH OF THE STATIC AND ALLOW THEM TO EXPAND SERVICE MORE RAPIDLY GROWING COMPETITION ALSO MAY SPUR BETTER SERVICE THE TWO PRIVATE OPERATORS CONTROL EIGHTY PERCENT OF THE THAI CELLULAR PHONE BUSINESS AND THEIR SHARE IS STILL GROWING BECAUSE THE STATE ENTERPRISE OWNED NETWORKS AREN'T EXPANDING BUT THE GOVERNMENT IS WIDELY EXPECTED TO ALLOW NEW ENTRIES IN THE NEXT FEW YEARS THE COMPETITION IS VERY KEEN AND IT IS GOING TO GET STRONGER SAYS MR. PRASIT OF CHULALONGKORN UNIVERSITY THE THREE MILLION NEW CONVENTIONAL LINES TO BE INSTALLED BY NINETEEN NINETY SEVEN WILL STIMULATE RATHER THAN DAMP DEMAND FOR CELLULAR PHONES IF THAILAND FOLLOWS THE PATTERN OF OTHER COUNTRIES THE MORE FIXED LINES YOU HAVE THE MORE TELEPHONE TRAFFIC YOU GENERATE AND THE MORE YOU HAVE TO BE REACHABLE SAYS MIKA VEHVILAINEN COUNTRY MANAGER FOR OY NOKIA OF FINLAND WHICH SELLS CELLULAR PHONES IN THAILAND NEIGHBORING LAOS AND CAMBODIA WHICH HAVE VIRTUALLY NO INFRASTRUCTURE HAVE SEEN THAILAND BENEFIT FROM CELLULAR COMMUNICATIONS TO SPEED THEIR OWN DEVELOPMENT THE TWO COUNTRIES HAVE EACH APPROVED CONTRACTS WITH THAI COMPANIES TO SET UP CELLULAR NETWORKS IN CAMBODIA SHINAWATRA WON A CONTRACT TO INSTALL AS MANY CELLLULAR HOOKUPS FIVE THOUSAND IN PHNOM PENH AS THE CITY NOW HAS REGULAR PHONE LINES THE GOVERNMENT DECIDED TO SKIP TO CELLULAR BECAUSE INSTALLING WIRED LINES COULD TAKE YEARS IN A COUNTRY WITH NO TELEPHONE OR ELECTRIC POLES AND WHERE ALL THE EQUIPMENT WOULD HAVE TO BE IMPORTED SHINAWATRA HOPES TO DO THE SAME THING IN LAOS BUT THE DETAILS HAVE YET TO BE WORKED OUT UNITED COMMUNICATIONS ALSO INSTALLED CELLULAR PHONE SERVICE IN CAMBODIA LAST YEAR CELLULAR LINES NOW OUTNUMBER TRADITIONAL LINES IN THE COUNTRY BY A TWO TO ONE MARGIN MS. OWENS IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S BANGKOK BUREAU I DIDN'T TAKE A POLL ON THE MATTER BUT I'D WAGER THAT BEFORE THAT HIT MAN WHACKED NANCY KERRIGAN ON THE KNEE JANUARY SIXTH NOT ONE IN TEN AMERICANS WAS MORE THAN DIMLY AWARE THAT ANOTHER WINTER OLYMPICS WAS SCHEDULED FOR THE NEXT MONTH IN THIS RUDDY CHEEKED BURG NORTH OF OSLO WINTER OLYMPICS HAVE A WAY OF SNEAKING UP ON PEOPLE AND THIS ONE XVIITH IN THE ORDER WAS SNEAKIER THAN MOST COMING JUST TWO YEARS AFTER THE LAST ONE INSTEAD OF THE USUAL FOUR THAT'S BECAUSE BACK IN NINETEEN EIGHTY SIX THE FOLKS AT THE INTERNATIONAL OLYMPIC COMMITTEE DECIDED THAT CONTINUING THE PRACTICE OF STAGING BOTH THE WINTER AND SUMMER GAMES IN THE SAME QUADRENNIAL YEAR WAS PUTTING UNDUE STRESS ON THE WALLETS OF THE TELEVISION NETWORKS AND CORPORATE SPONSORS THAT MAKE THESE EXTRAVAGANZAS POSSIBLE THE I. O. C.'S SOLUTION WAS TO UNCOUPLE THE TWO BY POPPING IN A WINTER QUICKY AND GO FROM THERE SO TO THE QUESTION QUOTE DIDN'T WE JUST DO THIS QUOTE THE ANSWER IS QUOTE UH HUH QUOTE THERE ARE OF COURSE OTHER QUESTIONS TO BE ANSWERED DURING THE SIXTEEN DAYS OF TORCH LIT COMPETITION THAT BEGIN TOMORROW BUT THE ONE THAT INTERESTS MOST AMERICANS HAS NOTHING DIRECTLY TO DO WITH THE DOINGS ON THE SLOPES OR RINKS IT'S ABOUT THE STATUS OF FIGURE SKATER TONYA HARDING WHOSE MANAGER SLASH LIVE IN EX HUSBAND AND BODYGUARD ENGINEERED THE ATTACK THAT KNOCKED CHIEF RIVAL KERRIGAN OUT OF THE U. S. NATIONALS A MONTH AGO AND CLEARED THE WAY FOR MS. HARDING TO WIN ONE OF THE TWO OLYMPIC BERTHS THE U. S. OLYMPIC COMMITTEE WILL DECIDE THIS EVEN AS THE GAMES GO ON TONYA HAS DUG IN HER TOES AND FLANKED AND FRONTED HERSELF WITH LAWYERS SUDDENLY EVERYBODY IN THE U. S. IS AN EXPERT ON DUE PROCESS SHOULD SHE COMPETE AS THINGS STAND RIGHT NOW WHY NOT SHE HASN'T BEEN INDICTED CRY THE MANY WHO ACCEPT THE BART SIMPSON STANDARD OF INNOCENCE YOU DIDN'T SEE ME SO YOU CAN'T PROVE I DID IT HOW ABOUT IF SHE IS INDICTED THAT AIN'T PROOF WHAT IF SHE'S CONVICTED GIVE HER A PAROLE IT'LL BE TOUGH TO TEAR AWAY FROM THAT GRIPPING STUFF BUT IF WE CAN WE'LL FIND MANY FAMILIAR FACES AMONG THE ATHLETES INDEED COMING SO CLOSE AFTER THE LAST ONE THESE SHAPE UP AS THE DEJA VU GAMES WITH MANY OF THE CHAMPIONS FROM THE NINETEEN NINETY TWO OUTING IN ALBERTVILLE FRANCE RETURNING IN THIS CATEGORY ARE THREE OF THE FOUR AMERICANS WHO WON GOLD MEDALS AT THAT AFFAIR SPEED SKATER BONNIE BLAIR SHORT TRACK SKATER CATHY TURNER AND FREE STYLE SKIER DONNA WEINBRECHT AS WELL AS ALBERTO TOMBA THE FUN LOVING ITALIAN SLALOM ACE GEORG HACKL THE MUSTACHIOED GERMAN LUGER PLUS VEGARD ULVANG AND BJORN DAHLIE HEROES OF THE CROSS COUNTRY SKIING LOVING NORWEGIANS ADDITIONALLY THE FIELD IN FIGURE SKATING WILL BE SWELLED BY THAT SPORT'S NEW LAW OF RETURN THAT PERMITS ONE TIME REPRISES BY EX OLYMPIANS WHO'VE TURNED PROFESSIONAL BRIAN BOITANO OF SUNNYVALE CALIFORNIA THE NINETEEN EIGHTY EIGHT MEN'S CHAMP WILL BE BACK SO WILL THE GERMAN KATARINA WITT WOMEN'S GOLD MEDALIST IN NINETEEN EIGHTY FOUR AND EIGHTY EIGHT AND THE NINETEEN EIGHTY FOUR ICE DANCE WINNERS JAYNE TORVILL AND CHRISTOPHER DEAN OF BRITAIN IN ALPINE SKIING ALL THE CONTESTANTS ARE PROS ALL THE TIME BUT DON'T TRY TO MAKE SENSE OF SUCH THINGS THESE GAMES WILL BREAK GROUND OOPS ICE IN AT LEAST ONE RESPECT THEY WILL FINALLY TRANSPORT THE NEW WORLD ORDER TO SPORTS BY RATIFYING THE BREAKUP OF THE OLD SOVIET UNION TEAM THE SOVS PER SE DIDN'T COMPETE IN EITHER OF THE NINETEEN NINETY TWO GAMES BUT THEIR SPORTS ORGANIZATIONS SURVIVING WERE REPRESENTED UNDER SUCH EUPHEMISMS AS THE COMMONWEALTH OF INDEPENDENT STATES OR UNIFIED TEAM THIS TIME THEY'LL BE COMPETING AS RUSSIANS UKRAINIANS GEORGIANS AND SO ON AND THE DIVISION WILL BOOST THE NUMBER OF COMPETING NATIONS TO A RECORD SIXTY NINE IN NINETEEN NINETY TWO THOUGH ATHLETES FROM ONLY FOURTEEN OF THE SIXTY FOUR COMPETING NATIONS WON GOLD MEDALS SHOWING WHAT A SMALL WORLD THE GAMES OF ICE AND SNOW REALLY ENCOMPASS OTHER THINGS ABOUT THE LILLEHAMMER GAMES WON'T BE CHANGED FROM PAST FESTS MOST WINTER SPORTS POSSESS AN ELEMENT OF DANGER AND IN SOME IT IS CONSIDERABLE THIS WAS BROUGHT HOME BY THE DEATH OF ULRIKE MAIER A TOP MEMBER OF THE AUSTRIAN WOMEN'S ALPINE TEAM IN A CRASH DURING A WORLD CUP DOWNHILL RACE IN GARMISCH PARTENKIRCHEN GERMANY THE ACCIDENT HAS PROMPTED SOME TO ASK WHETHER SPEEDS IN THAT SPORT HAVE BECOME EXCESSIVELY HIGH PARADOXICALLY THOUGH MUCH OF THE DRAMA IS DRAINED FROM WINTER OLYMPIC SPEED SPORTS BY THE FACT THAT IN SOME THE HARDWARE SHARES THE SPOTLIGHT WITH THE HUMANS AND BY FORMATS THAT MATCH CONTESTANTS AGAINST THE STOPWATCH OR MEASURING TAPE MORE THAN ONE ANOTHER TO HEAR THE EXPERTS TELL IT THE WINNERS ON THE LUGE AND BOBSLED RUNS ARE DETERMINED AS MUCH BY THEIR VEHICLES AS THEIR OWN SKILL HOW COMPETITIVELY SATISFYING WOULD THE SUMMER GAMES' ONE HUNDRED METER DASH BE IF THE RUNNERS RAN SINGLY AGAINST THE CLOCK BUT THAT SAID THESE PROCEEDINGS ARE SHAPING UP TO BE BETTER THAN SATISFACTORY WEATHER WAS A PROBLEM AT THE PAST TWO WINTER GAMES BUT NOT IN THE WAY YOU'D EXPECT IT WAS TOO WARM AND DRY RATHER THAN TOO COLD OR SNOWY BASED ON THE ARMPIT HIGH SNOW IN EVERY UNPLOWED AREA THERE'LL BE NO SHORTAGE OF THE WHITE STUFF HEREABOUTS UNTIL JUNE AND STYLIZED OR NOT WINTER OLYMPICS EVENTS STILL ARE CAPABLE OF PRODUCING ATHLETIC THRILLS OF THE HIGHEST ORDER RECALL IF YOU WILL NINETEEN SEVENTY SIX AT INNSBRUCK AUSTRIA WHEN HOME TEAMER FRANZ KLAMMER A SLIM TWENTY TWO YEAR OLD FROM THE VILLAGE OF MOOSWALD CLATTERED PELL MELL THROUGH THE DOWNHILL COURSE TO OVERTAKE THE SWISS VETERAN BERNHARD RUSSI FOR THE GOLD U. S. TELEVISION MUST HAVE REPLAYED IT ONE HUNDRED TIMES AND IT WAS BREATHTAKING EVERY TIME I REMEMBER EVERYTHING ABOUT THAT RUN FROM BEGINNING TO END VERY CLEAR SAYS MR. KLAMMER WHO STILL LIVES IN MOOSWALD AND STILL SKIS COMPETITIVELY ALBEIT AT THE MASTERS' LEVEL QUOTE I WANTED THE NUMBER THREE START POSITION BECAUSE IT WAS MY FAVORITE BUT RUSSI HE GOT IT I GOT NUMBER FIFTEEN WHICH WAS VERY BAD BECAUSE I KNEW THE SNOW WOULD BE RUTTED BY THEN RUSSI MADE A GREAT RUN HE WAS ABOUT A HALF SECOND IN FRONT OF EVERYONE WHICH IS A LOT TO BEAT HIM I KNEW I HAD TO TAKE A DIFFERENT STRAIGHTER LINE THAN I'D TAKEN IN PRACTICE IT WAS BUMPY BUT I STAYED IN MY TUCK I DIDN'T CHICKEN OUT YEAH I SUPPOSE IT WAS DANGEROUS BUT I DIDN'T THINK OF THAT I HAD NO WORRY EXCEPT TO GO FASTER I WAS IN CONTROL OF EVERYTHING THAT'S HOW IT IS WHEN YOU'RE YOUNG AND IN SHAPE AT LEAST THAT'S HOW IT CAN BE SEAGATE TECHNOLOGY INCORPORATED SAID IT WAS SUCCESSFUL IN LITIGATION WITH THE INTERNAL REVENUE SERVICE AND AS A RESULT BELIEVES IT WON'T HAVE TO PAY MOST OF THE ONE HUNDRED TWELVE POINT THREE MILLION DOLLARS IN TAXES SOUGHT BY THE I. R. S. THE I. R. S. CLAIMED SEAGATE OWED TAXES ON AN ADDITIONAL TWO HUNDRED EIGHTY FIVE MILLION DOLLARS OF INCOME FOR THE FISCAL YEARS NINETEEN EIGHTY THREE THROUGH NINETEEN EIGHTY SEVEN AT ISSUE WAS THE ALLOCATION OF INCOME BETWEEN SEAGATE AND ITS SINGAPORE MANUFACTURING FACILITY SEAGATE SAID THAT BASED ON AN OPINION ISSUED BY THE U. S. TAX COURT ON THE MATTER IT BELIEVES THE DISPUTED INCOME FIGURE TO BE ABOUT FORTY FIVE MILLION DOLLARS INSTEAD OF TWO HUNDRED EIGHTY FIVE MILLION DOLLARS A SEAGATE SPOKESMAN SAID THE COMPANY DOESN'T EXPECT ANY NEGATIVE IMPACT ON EARNINGS RELATED TO THE MATTER SEAGATE IS A SCOTTS VALLEY CALIFORNIA MAKER OF COMPUTER DATA STORAGE PRODUCTS THE COMPANY OR THE I. R. S. MAY APPEAL THE DECISION SEAGATE SAID THE DOLLAR FELL A BIT AGAINST THE YEN AS CONFLICTING REPORTS ON THE PROGRESS OF HIGH LEVEL U. S. JAPAN TRADE NEGOTIATION LEFT TRADERS BAFFLED AS TO THE DOLLAR'S NEAR TERM DIRECTION THE U. S. CURRENCY TOOK A BIGGER HIT AGAINST THE MARK AS TRADERS TOOK PROFITS ON THE SHARP DOLLAR RISES THAT FOLLOWED LAST WEEK'S BOOST IN U. S. INTEREST RATES THE MARK ALSO WAS HELPED AFTER A SENIOR BUNDESBANK OFFICIAL HINTED THAT GERMANY IS LESS LIKELY TO CUT INTEREST RATES BECAUSE OF THE RECENT WEAKNESS OF THE MARK LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FIVE THREE THREE MARKS DOWN FROM ONE POINT SEVEN FIVE EIGHT FIVE MARKS LATE WEDNESDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED EIGHT POINT ONE FIVE YEN DOWN FROM ONE HUNDRED EIGHT POINT THREE FIVE YEN STERLING WAS TRADING AT ONE POINT FOUR SIX TWO OH DOLLARS UP A BIT FROM ONE POINT FOUR SIX ONE FIVE DOLLARS ON FRIDAY FINANCIAL MARKETS IN JAPAN WERE CLOSED FOR A NATIONAL HOLIDAY WITH JAPAN'S DEPUTY PREMIER TSUTOMU HATA UNDER PRESSURE TO PRODUCE AN ACCEPTABLE BILATERAL TRADE ACCORD WITH THE U. S. PRIOR TO TODAY'S SUMMIT MEETING IN WASHINGTON D. C. BETWEEN PRIME MINISTER MORIHIRO HOSOKAWA AND PRESIDENT CLINTON TRADERS NOTED CONTRADICTORY SIGNALS ABOUT WHETHER THAT WOULD BE ACHIEVED ON TIME EVEN AS AN UNIDENTIFIED JAPANESE OFFICIAL ANNOUNCED THAT MR. HATA AND U. S. SECRETARY OF STATE WARREN CHRISTOPHER AGREED TO REACH AN ACCORD IN THE TRADE TALKS BY THE FRIDAY DEADLINE WHITE HOUSE SPOKESWOMAN DEE DEE MYERS SAID QUOTE WE HAVE NOT MADE A LOT OF PROGRESS QUOTE THE TALKS APPEAR TO REMAIN STALLED OVER JAPAN'S REFUSAL TO ACCEPT NUMERICAL TARGETS ON TRADE AGREEMENTS COVERING AUTOS AND AUTO PARTS ACCESS TO JAPAN'S INSURANCE MARKET AND GOVERNMENT PROCUREMENT LACK OF AN AGREEMENT IS SEEN STRENGTHENING THE YEN DESPITE JAPAN'S ECONOMIC QUAGMIRE BECAUSE THE U. S. IS BELIEVED UNLIKELY TO DISCOURAGE A WEAK YEN UNTIL JAPANESE TRADE BARRIERS COME DOWN THE WAY I READ IT IS THAT THE JAPANESE WON'T GIVE IN OTHERWISE OUR RHETORIC WOULDN'T BE GETTING SO LOUD SAID PETER DALEY VICE PRESIDENT OF FIRST FIDELITY BANK CORPORATION PHILADELPHIA HE SAID DESPITE MARKET SENTIMENT THAT THE SUMMIT WON'T BE PRODUCTIVE NO ONE WANTS TO BE CAUGHT OFF GUARD BY BETTING THE WRONG WAY TRADERS DON'T WANT TO GET INVOLVED IN THE YEN BECAUSE SOME ANNOUNCEMENT COULD BE MADE AND THE DOLLAR WILL MOVE UP OR DOWN TWO YEN IN EITHER DIRECTION MR. DALEY SAID BUT OTHER ANALYSTS SAID ANY FAILURE TO GET A TRADE AGREEMENT WOULD BE OFFSET BY STATEMENTS DESIGNED TO HALT OVERLY VOLATILE TRADING THE U. S. SEEMS TO BE PLAYING DOWN THE USE OF CURRENCY AS A MEANS OF RESOLVING THE TRADE IMBALANCE SAID ERIC NICKERSON CHIEF ECONOMIST FOR BANK OF AMERICA IN SAN FRANCISCO AND IF IT IS REITERATED IN AN OFFICIAL WAY THAT WILL TEMPER THE KNEE JERK REACTION TO STRENGTHEN THE YEN THE DOLLAR MEANWHILE FELL AGAINST THE MARK AFTER TRADERS TOOK PROFITS AND REVERSED A WEEK LONG CLIMB WHEN THE DOLLAR FAILED TO BREAK PAST RESISTANCE AT ONE POINT SEVEN SIX FIVE OH MARKS TRADERS TESTED THE DOWNSIDE SAID CHARLES COSSENTINO VICE PRESIDENT OF DEUTSCHE GENOSSENSCHAFTSBANK IN NEW YORK HE SAID THE MARK ALSO WAS BOOSTED BY COMMENTS BY HANS JUERGEN KRUPP A MEMBER OF THE BUNDESBANK'S POLICYMAKING PANEL WHO SAID THE GERMAN CENTRAL BANK WOULDN'T PROVOKE AN OVERSHOOTING OF THE DOLLAR AGAINST THE MARK THE HOUSE JOINED THE SENATE IN VOTING TO EXTEND THE DEADLINE FOR FRAUD SUITS AGAINST FAILED SAVINGS AND LOANS INCLUDING MADISON GUARANTY THE ARKANSAS THRIFT LINKED TO THE WHITEWATER CASE INVOLVING PRESIDENT CLINTON HOUSE MEMBERS VOTED THREE HUNDRED NINETY TO ONE TO EXTEND UNTIL DECEMBER THIRTY FIRST NINETEEN NINETY FIVE THE STATUTE OF LIMITATIONS FOR THE RESOLUTION TRUST CORPORATION TO PURSUE CIVIL ACTIONS AGAINST THRIFTS IT CONCLUDES WERE MANAGED FRAUDULENTLY WITHOUT THE EXTENSION THE R. T. C.'S AUTHORITY TO PURSUE CIVIL ACTIONS AGAINST MADISON WOULD EXPIRE FEBRUARY TWENTY EIGHTH RECENTLY APPOINTED SPECIAL COUNSEL ROBERT FISKE IS LOOKING INTO TIES BETWEEN MADISON AND WHITEWATER DEVELOPMENT CORPORATION IN WHICH MR. CLINTON AND HIS WIFE WERE INVESTORS WHEN REPUBLICAN SENATOR ALFONSE D'AMATO OF NEW YORK PRESSED FOR AN EXTENSION IN THE CASE OF MADISON DEMOCRATIC SENATORS STRUCK A COMPROMISE COVERING ALL FAILED THRIFTS ON WEDNESDAY THE SENATE UNANIMOUSLY APPROVED THE COMPROMISE AS AN AMENDMENT TO AN EMERGENCY SPENDING BILL TO AID LOS ANGELES EARTHQUAKE VICTIMS THE HOUSE YESTERDAY INSTRUCTED ITS NEGOTIATORS TO ACCEPT THE AMENDMENT IN A CONFERENCE COMMITTEE WITH THE SENATE BOTH CHAMBERS ARE EXPECTED TO GIVE FINAL APPROVAL TO THE MEASURE TODAY AND SEND IT TO PRESIDENT CLINTON FOR HIS SIGNATURE WE KNOW WE KNOW YOU WANT TO BE A WIRELESS WARRIOR YOU WANT TO BE PART OF THIS GREAT NEW WORLD BUT YOU HAVE NO IDEA WHAT ANYBODY IS TALKING ABOUT SO HERE'S A GLOSSARY OF TERMS TO HELP YOU GET STARTED ADVANCED MOBILE PHONE SERVICE AMPS THE STANDARD TRANSMISSION SCHEME FOR ANALOG CELLULAR PHONES BASED ON TECHNOLOGY DEVELOPED BY AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S BELL LABORATORIES CELLULAR PROVIDERS ARE TRYING TO MOVE TO AN ALL DIGITAL APPROACH FOR CLEANER CALLS BUT AMPS WILL PROBABLY REMAIN THE MOST USED METHOD FOR THE NEXT FEW YEARS SEE ANALOG AIRTIME THE TIME A USER SPENDS GABBING ON A CELLULAR PHONE MOST CARRIERS BILL CUSTOMERS BASED ON THE TOTAL MINUTES THEY ARE ON THE AIR EACH MONTH AND CHARGES RUN TWENTY FIVE TO FORTY FIVE CENTS PER MINUTE DEPENDING ON THE SERVICE SEE PEAK OFFPEAK ALPHANUMERIC A MESSAGE THAT APPEARS ON THE DATA SCREEN OF A PAGER OR CELLULAR PHONE IT CONTAINS LETTERS QUOTE ALPHAS QUOTE AND NUMBERS QUOTE NUMERICS QUOTE ANALOG THE STANDARD METHOD OF TRANSMITTING A RADIO PHONE CALL THE CALL IS CONVERTED INTO ELECTRICAL IMPULSES THAT TRAVEL IN THE FORM OF RADIO WAVES WHICH ARE ANALOGS OR ANALOGOUS TO THE SOUND WAVES OF THE ORIGINAL VOICE CELL THE BASIC GEOGRAPHIC UNIT THAT GAVE CELLULAR ITS NAME A CELLULAR NETWORK IN A CITY OR COUNTY IS CARVED INTO CELLS EACH OF WHICH IS EQUIPPED WITH A RADIO TRANSMITTER SLASH RECEIVER THESE CELLS VARY IN SIZE DEPENDING UPON TERRAIN AND CAPACITY DEMANDS A COMPUTER AT THE NETWORK'S SWITCHING OFFICE MONITORS EACH CALL HANDING IT OFF TO ANOTHER CELL AND AT ANOTHER FREQUENCY AS NEEDED SEE HANDOFF MICROCELLS CELLULAR DIGITAL PACKET DATA CDPD A NEW METHOD OF TRANSMITTING DATA OVER THE CELLULAR NETWORK IT PLACES THE MESSAGE IN DIGITAL ELECTRONIC ENVELOPES AND SENDS IT AT HIGH SPEED THROUGH UNDERUSED RADIO CHANNELS OR BETWEEN PAUSES IN CELLULAR PHONE CONVERSATIONS CDPD WHICH WILL SEND DATA AS MUCH AS EIGHT TIMES FASTER THAN REGULAR CELLULAR DELIVERY IS BEING INTRODUCED IN SOME MAJOR MARKETS THIS YEAR CHANNEL THE WIDTH OF A SPECTRUM BAND MEASURED IN KILOHERTZ TAKEN UP BY A RADIO SIGNAL MOST PHONES USE THIRTY KILOHERTZ CHANNELS SEE HERTZ AND SPECTRUM CODE DIVISION MULTIPLE ACCESS CDMA A TYPE OF DIGITAL TRANSMISSION SYSTEM SAID TO OFFER UP TO TWENTY TIMES MORE CAPACITY THAN CONVENTIONAL ANALOG AND DIGITAL CELLULAR SYSTEMS CDMA SYSTEMS USE A LOW POWER SIGNAL SPREAD ACROSS A WIDE FREQUENCY BAND THE SYSTEMS ASSIGN A SPECIAL ELECTRONIC CODE INSTEAD OF A FREQUENCY TO EACH CALL SIGNAL THIS ALLOWS MORE CALLS TO OCCUPY THE SAME SPACE IN A COMMUNICATIONS CHANNEL AND TO BE SPREAD OVER AN ENTIRE FREQUENCY BAND SEE TIME DIVISION MULTIPLE ACCESS DIGITAL THE TRANSMISSION METHOD FOR SENDING VOICE OR INFORMATION USING THE BINARY CODE ONES AND ZEROS OF COMPUTER LANGUAGE THIS IS ACCOMPLISHED BY TRANSMITTING ON OFF ELECTRICAL PULSES DUAL MODE PHONES CELLULAR PHONES THAT CAN OPERATE IN EITHER AN ANALOG OR DIGITAL MODE ELECTRONIC SERIAL NUMBER ESN EACH CELLULAR PHONE HAS A UNIQUE ESN PROGRAMMED INTO IT FACILITATING BILLING THE ESN IS AUTOMATICALLY TRANSMITTED AHEAD OF A CALL TO THE CELLULAR TOWER STATION THE MOBILE TELEPHONE SWITCHING OFFICE THEN VALIDATES THE ESN AND PUTS THROUGH THE CALL SEE MOBILE TELEPHONE SWITCHING OFFICE FREQUENCY REUSE THE ABILITY TO USE THE SAME FREQUENCIES REPEATEDLY ACROSS THE DIFFERENT CELLS OF A CELLULAR SYSTEM THEREBY INCREASING CALL HANDLING CAPACITY DESPITE A LIMITED NUMBER OF CHANNELS THIS IS MADE POSSIBLE BY THE BASIC CELLULAR SETUP IN WHICH EACH CELL USES THE RADIO FREQUENCIES WITHIN ITS BOUNDARIES ALLOWING THE SAME FREQUENCIES TO BE REUSED WITH LITTLE OR NO INTERFERENCE FROM OTHER NEARBY CELLS HANDOFF THE PROCESS BY WHICH A SWITCHING OFFICE PASSES A CELLULAR CONVERSATION FROM ONE RADIO FREQUENCY IN ONE CELL TO ANOTHER FREQUENCY IN ANOTHER CELL THIS HAPPENS SO QUICKLY THE ROVING USER DOESN'T NOTICE IT AT LEAST WHEN IT WORKS HANDS FREE A SAFETY FEATURE NOW INCLUDED WITH MOST MOBILE PHONES BY USING A MICROPHONE IN THE CAR VISOR DRIVERS TURN THEIR CELLULAR PHONES INTO SPEAKERPHONES AND DON'T HAVE TO LIFT OR HOLD THE HANDSET TO THEIR EAR SEE VOICE ACTIVATED HERTZ CYCLES PER SECOND THE INTERNATIONAL MEASURE OF FREQUENCY WHEN USED IN RELATION TO THE RADIO SPECTRUM HERTZ IS GENERALLY PRECEDED BY PREFIXES AS IN KILOHERTZ THOUSANDS OF CYCLES PER SECOND AND MEGAHERTZ MILLIONS OF CYCLES SEE SPECTRUM HORN ALERT AN OPTIONAL FEATURE THAT AUTOMATICALLY BLOWS THE CAR'S HORN AS A SUBSTITUTE FOR THE PHONE'S REGULAR RINGER IF A CALL COMES IN IT LETS THE RECIPIENT OF A PHONE CALL BE ALERTED WHEN STANDING OUTSIDE THE CAR MESSAGE ALERT THIS FEATURE ALSO KNOWN AS THE CALL IN ABSENCE INDICATOR SIGNALS USUALLY WITH A LIGHT WHEN A CALL HAS COME IN THIS IS PARTICULARLY IMPORTANT IF THE CELLULAR SUBSCRIBER HAS VOICE MAIL METROPOLITAN STATISTICAL AREAS M. S. A.S THE THREE HUNDRED SIX LARGEST URBAN POPULATION MARKETS AS DEFINED BY THE U. S. GOVERNMENT EACH HAS TWO LICENSED CELLULAR SERVICE OPERATORS MICROCELLS UNITS SMALLER THAN CELLS BY WHICH FUTURE PERSONAL COMMUNICATIONS SERVICES NETWORKS WILL BE DIVIDED P. C. S. MICROCELLULAR NETWORKS WILL EMPLOY THOUSANDS OF TINY RADIO TRANSCEIVERS IN MYRIAD MICROCELLS SEE PERSONAL COMMUNICATIONS SERVICES MOBILE PHONE A CELLULAR PHONE THAT IS BASED IN A CAR TRUCK OR VAN THREE TYPES ARE SOLD MOBILE TRANSPORTABLE AND PORTABLE A MOBILE UNIT IS ATTACHED TO THE VEHICLE DRAWS ITS POWER FROM THE VEHICLE'S BATTERY AND HAS AN EXTERNAL ANTENNA A PORTABLE IS A ONE PIECE SELF CONTAINED CELLULAR TELEPHONE WITH THE TRANSCEIVER INSIDE THE LATEST PHONES WEIGH AS LITTLE AS SIX OUNCES AND CAN BE FOLDED UP AND CARRIED IN A SUIT POCKET OR PURSE A TRANSPORTABLE IS A CELLULAR PHONE THAT CAN BE DETACHED AND CARRIED OUTSIDE THE VEHICLE AND HAS ITS OWN BATTERY PACK WHILE THE ENTIRE UNIT CARRIES THE SAME HIGH POWERED TRANSMITTER AS CAR MOUNTED CELLULAR UNITS ITS SPECIAL CARRYING CASE ISN'T AS SMALL OR AS PORTABLE AS POCKET SIZE PHONES MOBILE TELEPHONE SWITCHING OFFICE MTSO THE CENTRAL COMPUTERIZED SWITCH THAT CONTROLS THE ENTIRE OPERATIONS OF A CELLULAR SYSTEM MONITORING ALL CELLULAR CALLS TRACKING THE LOCATION OF ALL CELLULAR EQUIPPED VEHICLES TRAVELING IN THE SYSTEM ARRANGING HANDOFFS AND BILLING NO ANSWER TRANSFER A SERVICE THAT AUTOMATICALLY TRANSFERS AN INCOMING CELLULAR CALL TO ANOTHER PHONE NUMBER IF THE CELLULAR SUBSCRIBER IS UNABLE TO ANSWER NONWIRELINE A CELLULAR PHONE CARRIER THAT'S ONE OF TWO IN ANY MARKET AND INDEPENDENT OF THE REGULAR LOCAL PHONE SERVICE CUSTOMERS WHO USE THE NONWIRELINE CELLULAR CARRIER OPERATE ON THE CELLULAR NETWORK'S A BAND SEE WIRELINE NUMBER ASSIGNMENT MODULE N. A. M. THE CELLULAR PHONE'S ELECTRONIC MEMORY AND WHERE IT STORES ITS TELEPHONE NUMBER PHONES THAT HAVE DUAL OR MULTI N. A. M. FEATURES OFFER USERS THE OPTION OF USING THEIR PHONE IN SEVERAL DIFFERENT MARKETS BY REGISTERING WITH A LOCAL NUMBER IN EACH LOCATION OFF PEAK THE PERIOD DURING WHICH CARRIERS OFFER REDUCED AIRTIME FEES USUALLY AFTER THE CLOSE OF A BUSINESS DAY SEE PEAK PEAK HIGHEST USAGE PERIOD OF THE BUSINESS DAY WHEN A CELLULAR SYSTEM CARRIES THE MOST CALLING TRAFFIC AND WHEN USERS PAY THROUGH THE NOSE FOR IT PERSONAL COMMUNICATIONS SERVICES P. C. S. DIGITAL WIRELESS SERVICES THAT WILL LET USERS MAKE CALLS FROM LIGHTWEIGHT POCKET PHONES OR SEND DATA MESSAGES FROM THE TINY COMMUNICATORS CALLED PERSONAL DIGITAL ASSISTANTS EXPECTED TO BECOME WIDELY AVAILABLE IN THREE TO FIVE YEARS P. C. S. SYSTEMS WILL USE MICROCELLS AND OPERATE AT HIGHER FREQUENCIES AND IN A BROADER SLICE OF THE SPECTRUM THAN CELLULAR SYSTEMS PERSONAL DIGITAL ASSISTANT P. D. A. TOUTED OFTEN BY FORMER APPLE COMPUTER INCORPORATED CHAIRMAN JOHN SCULLEY THE TERM REFERS TO SMALL HANDY DATA COMMUNICATORS THAT CAN SEND THEIR MESSAGES OVER WIRELESS NETWORKS THERE'S JUST ONE CATCH MOST OF THE P. D. A.S INTRODUCED LAST YEAR HAD LITTLE IF ANY WIRELESS CAPABILITY WHEN THEY WERE FIRST DELIVERED POP A TERM FOR THE POPULATION IN THE AREA SERVED BY A CARRIER AN AREA WITH A MILLION PEOPLE IS SAID TO HAVE ONE MILLION POPS A MILLION POTENTIAL CUSTOMERS REPERTORY DIALING ALSO KNOWN AS MEMORY DIALING AND SPEED CALLING THIS ALLOWS A CELLULAR PHONE USER TO RECALL ONE TO NINETY NINE OR EVEN MORE PHONE NUMBERS FROM A PHONE'S MEMORY WITH THE TOUCH OF A BUTTON OR TWO RESELLER A CELLULAR SERVICE DISTRIBUTOR THAT RESERVES CELLULAR TRANSMISSION SPACE AT A DISCOUNTED WHOLESALE PRICE FROM A REGULAR CARRIER IN ITS TERRITORY AND THEN SELLS THE SERVICE AT RETAIL PRICES ROAMING REFERS TO A CELLULAR PHONE SUBSCRIBER'S USING A PHONE BEYOND HIS OR HER USUAL SERVICE AREA SUCH AS WHEN DRIVING FROM ONE STATE TO ANOTHER SERVICE PLAN A RATE PLAN THAT A SUBSCRIBER CHOOSES WHEN REQUESTING CELLULAR SERVICE THIS USUALLY CONSISTS OF A BASE RATE FOR CONNECTING TO THE SYSTEM AND A PER MINUTE CHARGE FOR USAGE SPECIALIZED MOBILE RADIO S. M. R. A TWO WAY RADIO DISPATCH SERVICE OPERATING IN THE EIGHT HUNDRED TO NINE HUNDRED MEGAHERTZ FREQUENCY BAND FOLLOWING THE RECENT RELAXATION OF FEDERAL RESTRICTIONS S. M. R. OPERATORS WHO HAD PREVIOUSLY HANDLED TAXI DISPATCHES AND THE LIKE HAVE TAKEN AIM AT EXPANDING INTO CELLULAR LIKE PHONE SERVICES PUTTING THEM IN DIRECT COMPETITION WITH CELLULAR PHONE COMPANIES SPECTRUM THE RANGE OF ELECTROMAGNETIC WAVES WHICH VARY IN LENGTH OR FREQUENCY AND INTENSITY AND ENCOMPASS SOUND NEAR THE LOW END AND LIGHT TOWARD THE HIGH END IN BETWEEN IS THE RADIO SPECTRUM USED IN WIRELESS COMMUNICATIONS SPECTRUM IS ALSO USED TO REFER SIMPLY TO RADIO WAVELENGTHS STANDBY TIME THE AMOUNT OF TIME A FULLY CHARGED CELLULAR PORTABLE OR TRANSPORTABLE PHONE CAN BE LEFT TURNED ON BEFORE THE PHONE'S BATTERIES WILL LOSE POWER THE PHONES MUST BE TURNED ON TO RECEIVE A CALL TALK TIME THE LENGTH OF TIME A PORTABLE OR TRANSPORTABLE PHONE CAN BE USED BEFORE ITS BATTERY MUST BE RECHARGED BATTERY CAPACITY IS USUALLY MEASURED BY SO MANY MINUTES OF TALK TIME AND HOURS OF STANDBY TIME TALKING DRAWS ADDITIONAL POWER FROM THE BATTERY BECAUSE THE PHONE IS TRANSMITTING AND RECEIVING DURING THE CONVERSATION TIME DIVISION MULTIPLE ACCESS TDMA A DIGITAL TRANSMISSION SCHEME FOR EXPANDING THE CAPACITY OF CELLULAR SYSTEMS TDMA CAN INCREASE CAPACITY LESS THAN THE CDMA APPROACH BUT THE TECHNOLOGY IS FURTHER ALONG NOW BEING INSTALLED BY MANY CARRIERS TDMA TRANSMISSION EQUIPMENT OFFERS THREE TO SEVEN TIMES THE CAPACITY OF EXISTING CELLULAR ANALOG SYSTEMS CURRENT TDMA SYSTEMS DIVIDE A CHANNEL INTO THREE TIME SLOTS EACH A FRACTION OF A SECOND THIS ALLOWS ONE CHANNEL TO HANDLE THREE CALLS SIMULTANEOUSLY FUTURE SYSTEMS WILL GO TO SEVEN CALLS AT ONCE TUMBLING THE TERM FOR THE USE OF A PHONE THAT HAS BEEN ELECTRONICALLY ALTERED TO STEAL SERVICE BY CONSTANTLY GENERATING NEW ELECTRONIC SERIAL NUMBERS WITH EACH CALL EACH ESN IS TRANSMITTED BEFORE A CALL CAUSING THE CELLULAR CARRIER TO LET THE CALL PASS EVEN THOUGH THE CALL CAN'T BE TRACED TO A BILLABLE ACCOUNT VOICE ACTIVATED A FEATURE OF SOME CELLULAR PHONES THAT LETS A USER DIAL BY CALLING OUT NAMES QUOTE MOM QUOTE OR NUMBERS TO THE CELLULAR PHONE INSTEAD OF HAVING TO DIAL MANUALLY VOICE MAIL A COMPUTERIZED ANSWERING SERVICE LIKE THOSE IN OFFICES THAT AUTOMATICALLY ANSWERS A CELLULAR CALL IT WILL PLAY A GREETING IN THE USER'S VOICE AND RECORD A MESSAGE AFTER THE MESSAGE IS RETRIEVED IT CAN BE DELETED SAVED OR FORWARDED TO SOMEONE ELSE'S VOICE MAIL SYSTEM WIRELINE A CELLULAR PHONE CARRIER OWNED BY THE COMPANY THAT ALSO OPERATES THE REGULAR LOCAL PHONE SERVICE IN A GIVEN MARKET CUSTOMERS WHO USE THE WIRELINE CELLULAR CARRIER OPERATE ON THE CELLULAR NETWORK'S B. BAND MR. KELLER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU A COUNTY JURY IN DETROIT AWARDED A MINORITY OWNED ACCOUNTING FIRM ONE POINT THREE MILLION DOLLARS PLUS INTEREST IN A SUIT THE FIRM BROUGHT AGAINST COOPERS AND LYBRAND CHARGING BREACH OF CONTRACT THE MINORITY OWNED FIRM BARROW ALDRIDGE AND COMPANY FILED SUIT AGAINST COOPERS AND LYBRAND IN WAYNE COUNTY CIRCUIT COURT IN JUNE NINETEEN NINETY TWO CHARGING THAT THE BIG ACCOUNTING FIRM VIOLATED A NINETEEN SEVENTY SEVEN EXCLUSIVE JOINT VENTURE AGREEMENT FOR THE TWO FIRMS TO SHARE GOVERNMENT CONTRACTS FROM THE NINETEEN SEVENTIES TO THE LATE NINETEEN EIGHTIES STATE AND FEDERAL LAW MANDATED THAT BIGGER FIRMS NEEDED MINORITY PARTICIPATION TO OBTAIN GOVERNMENT CONTRACTS ATTORNEYS FOR THE MINORITY FIRM ARGUED THAT COOPERS AND LYBRAND SECRETLY STARTED SHARING GOVERNMENT WORK WITH A DIFFERENT MINORITY FIRM IN NINETEEN EIGHTY SIX AFTER TOM BARROW PRESIDENT AND A SHAREHOLDER OF BARROW ALDRIDGE MADE AN UNSUCCESSFUL BID TO BECOME MAYOR OF DETROIT A SPOKESMAN FOR COOPERS AND LYBRAND SAID IT WAS QUOTE VERY SURPRISED QUOTE AT THE JURY'S VERDICT AND THAT THE FIRM WOULD APPEAL HE DOESN'T CARE HE WANTS MY PLASMA AND AS I THINK ONCE MORE I'M BITTEN COUTURIER CUSTOMER SARTORIAL SPENDER HOVNANIAN ENTERPRISES INCORPORATED A HOME BUILDER SAID IT EXPECTS FISCAL NINETEEN NINETY FOUR EARNINGS TO BE QUOTE AT THE BOTTOM OR SLIGHTLY BELOW QUOTE THE RANGE IT PROJECTED EARLIER DUE TO BAD WEATHER AND A DECISION TO DEFER CERTAIN TAX CREDITS THE RED BANK N. J. COMPANY WHICH BUILDS HOMES IN NEW JERSEY NORTH CAROLINA PENNSYLVANIA AND VIRGINIA HAD FORECAST EARNINGS OF EIGHTY CENTS TO ONE DOLLAR AND FIVE CENTS A SHARE FOR THE YEAR ENDING FEBRUARY TWENTY EIGHTH THAT PROJECTION IT SAID WAS BASED ON THE EXPECTED USE OF FEDERAL LOW INCOME HOUSING TAX CREDITS FOR A NEW JERSEY SENIOR RENTAL HOUSING COMMUNITY THE COMPANY SINCE CONCLUDED THAT REGULATIONS REQUIRE THE CREDITS TO BE APPLIED OVER THE COMING TEN MONTHS THE EFFECT OF THE CHANGE IS A FIFTEEN CENTS PER SHARE REDUCTION IN NET INCOME THE COMPANY ALSO SAID SEVERE WINTER WEATHER IN THE EAST SLOWED FOURTH QUARTER DELIVERIES AND INCREASED BUILDING COSTS IT CAME TO ME VIA FEDERAL EXPRESS IN A SLICK BLACK PACKAGE THAT LOOKED MORE LIKE AN EXOTIC GIFT FROM SHARPER IMAGE THAN WHAT IT WAS A PHONE BUT THIS WAS NO ORDINARY PHONE IT WAS THE MOTOROLA MICROTAC ULTRA LITE CLASSIC GOLD EDITION THE ULTIMATE CELLULAR PHONE GUARANTEED TO KEEP ME TAPPED IN AND IN TOUCH ANYTIME AND ANYWHERE AS THICK AS A PACK OF CIGARETTES AND MAYBE AN INCH TALLER THIS SEVEN HUNDRED DOLLARS BABY BOASTS ONE HUNDRED TWENTY MEMORY SLOTS NINE QUOTE ONE TOUCH TURBO DIAL LOCATIONS QUOTE AND NOT ONE BUT TWO USER MANUALS SO BEGAN MY RELUCTANT ENTRY INTO THE AGE OF WIRELESS THIS SLEEK LITTLE STAR TREK COMMUNICATOR IS MERELY THE CRUDE PRELUDE TO A MUCH HYPED FUTURE ONLY A FEW YEARS AWAY THE MANUFACTURERS OF THIS GADGETRY ARE COMING ON TO US WITH THE IMAGERY OF TOMORROW FAXES AT THE BEACH CALLS FROM THE FLOOR OF THE GRAND CANYON COMPACT FLIP DOWN COMPUTERS ON EVERY SEAT BACK OF EVERY COMMERCIAL FLIGHT ABLE TO ZAP FILES AND MISSIVES TO THOSE WAITING BELOW JUST LET ME TAN BUT IN THIS HIGH TECH HELLBENT FOR LEATHER RUSH TO LINK UP AND UNWIRE THE INDUSTRY SEEMS TO HAVE OVERLOOKED THOSE OF US WHO JUST WANT TO BE LEFT ALONE I DON'T WANT TO GET A FAX AT THE BEACH THANK YOU SUNSCREEN AND PULP FICTION WILL BE FINE SHOULD I EVER EXPLORE THE WONDERS OF THE GRAND CANYON ONLY TO FIND YOU REACHING INTO YOUR BACKPACK TO ANSWER THE CHIRP OF YOUR ULTRA LITE PLEASE PRAY THAT I'M NOT CARRYING A HANDGUN AS FOR A FLIP DOWN COMPUTER IN EVERY SEAT BACK TRAY PERISH THE THOUGHT THAT A PASSENGER MIGHT PREFER TO TAKE A LITTLE BREAK AND READ A GOOD BOOK WE WIRELINE LUDDITES MILLIONS OF US ALREADY GRIMACE EVERY TIME WE SEE SOME SELF IMPORTANT PEDESTRIAN PACING DOWN THE STREET WHILE BLABBING INTO HIS OR HER CELLULAR WE BURN TO INTERRUPT AND ASK JUST WHAT IS SO DAMNED IMPORTANT LIKE YOU CAN'T WAIT TO GET BACK TO THE OFFICE WHY WOULD ANYONE WANT TO BE IN TOUCH ANYWHERE AND ANYTIME ALL THE TIME OUR JOBS JUST AREN'T CRITICAL ENOUGH OF SUCH LIFE AND DEATH SIGNIFICANCE AS TO DEMAND IT SOMETHING MUST BE SAID FOR THE IMPORTANCE OF LOAFING MAYBE A LITTLE DOWNTIME IS ACTUALLY A BOON TO PRODUCTIVITY AN EFFICIENT WAY OF LETTING OUR ENGINES COOL SO THEY CAN RUN BETTER WHEN IT'S TIME TO TURN ON AGAIN IN THIS INCESSANT CLATTER OF CHATTER AND FAXING AND BEEPING WHERE IS THE TIME FOR THINKING OR DOODLING A CERTAIN SELF IMPORTANCE AND VANITY AND A SLIVER OF INSECURITY ARE AT THE HEART OF THIS UNWIRED DESIRE IT IS AS IF THE COMPANY WILL FALL APART WITHOUT US IT WON'T OR THE BOSS WILL REALIZE WE WEREN'T ALL THAT NECESSARY AFTER ALL HE OR SHE HAS ALREADY FIGURED THAT OUT OR IN THE CHARLIE BROWN THEOREM THE FEAR ARISES THAT IF YOU DON'T GO WIRELESS EVERYONE ELSE WILL BE GABBING ON THEIR CELLULAR PHONES ABOUT YOU YET AND THIS IS THE SCARY PART SOME OF THE RESISTERS AMONG US WRESTLE DAILY WITH A DEEP SEATED URGE TO GIVE THESE GIZMOS A TRY WE HATE WIRELESS AND YET WE FIND OURSELVES STARTING TO WANT ONE THAT SUBCONSCIOUS CLASH PLAYS OUT AT LUNCH WITH TWO FRIENDS DINING AT SFUZZI IN THE AIRY WINTER GARDEN OF NEW YORK'S WORLD FINANCIAL CENTER THE THREE OF US FIX HARD ON A CHUBBY WISPY HAIRED GUY WAITING TO BE SEATED HE IS TALKING INTENTLY INTO A BULKY CELL PHONE AN ANCIENT MODEL I HATE PEOPLE WHO USE CELLULAR PHONES ONE PAL VENTS MOST PEOPLE IN AMERICA HATE PEOPLE WHO USE CELLULAR PHONES QUOTE YEAH QUOTE RESPONDS THE OTHER QUOTE BUT I SECRETLY WANT ONE QUOTE AND THERE YOU HAVE IT WE WORRY ABOUT GETTING LEFT BEHIND THIS VENTURE INTO THE ETHER THREATENS TO TURN INTO A REPLAY OF DISCO IN THE NINETEEN SEVENTIES EVERYONE IT SEEMED KNEW HOW TO DO THE HUSTLE EXCEPT ME EVEN AFTER I BOUGHT A PAIR OF PLATFORM SHOES NEVER DID CATCH UP AND SO WE HAVE STARTED PORING OVER ALL THOSE NEWSPAPER ADS BLARING PRICES BELOW SEVENTY FIVE DOLLARS FOR THE LATEST POCKET PHONE ON TRIPS TO THE SUPERMARKET TO PICK UP A CARTON OF MILK WE WISH WE COULD MAKE AN INSTANT CALL BACK HOME TO ASK WHAT ELSE WE WERE SUPPOSED TO GET WIRELESS TEMPTATIONS ABOUND ALL AROUND US AND THE LURE WILL GROW AS THE NEXT GENERATION OF ACRONYMIC SIRENS P. C. S. PERSONAL COMMUNICATIONS SERVICES AND P. D. A.S PERSONAL DIGITAL ASSISTANTS TAKES HOLD THE OTHER DAY IN NEW YORK I ENTERED A TAXICAB AND WAS STARTLED TO SEE A CREDIT CARD CELLULAR PHONE WITH AN L. C. D. SCREEN THAT INSTRUCTED PICK UP NOW I'M TRYING OUT MY ULTRA LITE ON LOAN FROM MOTOROLA INCORPORATED I CARRY IT EVERYWHERE JUST ITCHING TO HAVE SOMEONE ANYONE CALL ME ON IT THIS IS AFTER ALL RESEARCH IT'S ALSO EXPENSIVE MY FIRST BILL RUNS ONE HUNDRED THIRTY ONE DOLLARS AND FORTY CENTS FOR THIRTY MINUTES OF CONVERSATION AND START UP COSTS SOON I REALIZE IF I RELENT AND EMBRACE THIS UNTETHERED TECHNOLOGY A WHOLE NEW SET OF FEARS COMES INTO PLAY WHAT IF NO ONE WANTS TO CALL ME OR NEEDS TO CALL ME WHAT IF I JUST DON'T RATE IN THE RANKS OF THE ANYTIME ACCESSED THE DIRTY LITTLE SECRET OF THE POCKET PHONE CROWD YOU SEE IS THE EXISTENCE OF AN UNWRITTEN PECKING ORDER THE ELITE MEMBERS OF THE CELLULAR SECT NEVER LEAVE THEIR PHONES ON FOR GOODNESS' SAKE THEN ANYONE WOULD BE ABLE TO CALL THEM THEY CARRY THEIR PHONES BLISSFULLY TURNED OFF SO THEY CAN REACH ANYONE THEY LIKE WHENEVER THE FANCY STRIKES THEM THE LOW END OF THE PECKING ORDER TAKES THE OPPOSITE TACK THEIR PHONES ARE ALWAYS ON SO THE BOSS CAN REACH THEM SO IF THE WIRELESS WORLD EVOLVES IN THE WAY MUCH OF THE REST OF LIFE DOES THIS WILL GET TO BE A LITTLE LIKE HIGH SCHOOL WHEN THE COOL KIDS WHO SMOKED MARLBOROS ON THE FRONT STEPS LEFT THE REST OF US FEELING INADEQUATE AND LONGING TO SIT NEXT TO THEM PERHAPS YOU'VE ALREADY HAD A CELLULAR SNUB MY PREVIOUS BOSS WAS A FERVENT WIRELESS CONVERT SHE USED HER FLIP SET PHONE WHENEVER SHE GOT THE CHANCE EVERY MORNING SHE WOULD PLACE A SCRATCHY HUMMING CALL TO ME IN THE OFFICE AS SHE SPED DOWN THE HIGHWAY IN A CAB ON HER WAY TO WORK USUALLY IT WAS TO LET ME KNOW SHE'D BE ARRIVING IN TEN MINUTES FINE THIS DIVISION BETWEEN THE ACCESSORS AND THE ACCESSED WILL GROW AS WIRELESS ADVANCES IN A LAB AT BELLCORE THE RESEARCH ARM OF THE REGIONAL BELL COMPANIES EARNEST ENGINEERS IN NECKTIES ARE EXPERIMENTING WITH A PHONE SYSTEM THAT TRACKS YOUR EVERY MOVE IT KNOWS WHEN YOU'RE AT HOME IN THE MORNING SO IT CAN SEND CALLS TO THE PHONE IN YOUR LIVING ROOM WHEN YOU CLIMB INTO YOUR CAR THE SYSTEM KNOWS TO FORWARD CALLS TO YOUR CAR PHONE WHEN YOU PARK AND GET OUT THE SYSTEM SENSES IT AND ROUTES CALLS TO YOUR BREAST POCKET WHEN YOU WALK INTO WORK THE SYSTEM SENDS CALLS TO WHERE THEY SHOULD HAVE BEEN GOING IN THE FIRST PLACE YOUR OFFICE YIKES IT IS KIND OF COOL THAT THE TECHNOLOGY EXISTS TO DO ALL THIS ALL TOO OFTEN IN HIGH TECH HOWEVER VENDORS THRUST NEW POWERS UPON US SIMPLY BECAUSE THEY CAN WITHOUT FIRST FIGURING OUT WHETHER ANYONE WANTS TO OR NEEDS TO THE SOLDIERS IN THIS WIRELESS REVOLUTION ARE OBLIVIOUS TO SUCH CRANKY OBSERVATIONS A REPORTER FRIEND IN LOS ANGELES DEFENDS HER CELLULAR PHONE IT'S A TOOL YOU CAN'T BE A HARD NEWS REPORTER OUT HERE AND NOT HAVE ONE I DON'T USE IT TO MAKE NAIL APPOINTMENTS AT MOTOROLA IN SCHAUMBURG ILLINOIS SENIOR VICE PRESIDENT MERLE L. GILMORE IS A PRIDEFUL WIRELESS WARRIOR HIS FAMILY USES FOUR CELLULAR PHONES HE TAKES WALKIE TALKIES ON SKI TRIPS AND HIS BELT HOLDS A NIFTY ALPHANUMERIC PAGER THAT IS ALMOST NEVER OFF QUOTE WHEN I'M OUT AND DON'T HAVE IT WITH ME IT'S LIKE I COULD MISS AN OPPORTUNITY QUOTE HE SAYS PROUDLY FINGERING HIS BEEPER A LOT OF PEOPLE THOUGHT WIRELESS IS A CONTROLLING DEVICE IT REALLY IS A FREEDOM DEVICE YUCK AND YET THERE IS SOMETHING COMPELLING ABOUT MY LITTLE ULTRA LITE AS IT RECLINES IN ITS CHARGER LIKE A BABY IN A CRADLE I PICK IT UP AND FLIP OPEN THE BOTTOM PRESS THE PWR BUTTON AND THE KEYPAD IS BATHED IN GREEN LIGHT AND EMITS AN ELECTRONIC BURP THAT IS KIND OF CUTE ACTUALLY DIAL UP MY OLD OFFICE PHONE RIGHT NEXT TO ME THE PHONE RINGS AND I CARRY ON A CONVERSATION FROM ONE EAR TO THE OTHER AND THEN IT OCCURS TO ME THERE IS SO MUCH I HAVEN'T YET TRIED THE NINETY PAGE MANUAL HOLDS MANY MYSTERIES HOW TO RECALL THE LAST TEN NUMBERS DIALED OR STORE A THIRTY TWO DIGIT NUMBER UNDER BOB AND CALL HIM WITH THE TOUCH OF ONE BUTTON YOU CAN EVEN ARM THIS PHONE WITH AN ALARM IF SOMEONE TRIES TO USE IT WITHOUT ENTERING YOUR SECRET CODE IT WILL AUTOMATICALLY DIAL YOUR REGULAR NUMBER TO LET YOU KNOW IT HAS BEEN STOLEN ALAS MOTOROLA SAYS THE TRIAL IS OVER THE ULTRA LITE MUST BE RETURNED BUT I'M PUSHING TO KEEP IT LONGER IT'S NOT AS IF I LIKE IT OR ANYTHING I JUST NEED TO DO SOME MORE RESEARCH CALL ME WHENEVER WE'LL TALK MR. KNEALE IS A NEWS EDITOR IN THE WALL STREET JOURNAL'S NEW YORK BUREAU GEORGIA PACIFIC CORPORATION ATLANTA MAURICE W. KRING WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT CONTAINERBOARD AND PACKAGING OF THIS FOREST PRODUCTS CONCERN MR. KRING FIFTY SEVEN YEARS OLD WILL HAVE RESPONSIBILITY FOR THE COMPANY'S THIRTY NINE PACKAGING PLANTS AND FOUR LINERBOARD AND CORRUGATED MEDIUM MILLS HE HAD BEEN GROUP VICE PRESIDENT OF CONTAINERBOARD AND PACKAGING JUDITH A. SPRIESER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SARA LEE CORPORATION'S SARA LEE BAKERY NORTH AMERICA UNIT AND WILLIAM C. FOOTE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF BUILDING PRODUCTS WERE NAMED DIRECTORS OF THE COMPANY FILLING VACANCIES ON THE BOARD A FEDERAL JURY CONVICTED DISBARRED ATTORNEY JAMES H. O'HAGAN ON CHARGES THAT HE ILLEGALLY PROFITED FROM INSIDE INFORMATION ABOUT GRAND METROPOLITAN P. L. C.'S PLANS TO ACQUIRE PILLSBURY COMPANY IN NINETEEN EIGHTY EIGHT MR. O'HAGAN NOW FIFTY SEVEN YEARS OLD WAS AT THE TIME SERVING AS A PARTNER IN THE PROMINENT LAW FIRM OF DORSEY AND WHITNEY FEDERAL PROSECUTORS CHARGED THAT HE ACQUIRED NONPUBLIC INFORMATION WHEN THE LAW FIRM WAS ACTING AS LOCAL COUNSEL ON BEHALF OF GRAND MET THE ATTORNEY BOUGHT A SUBSTANTIAL QUANTITY OF PILLSBURY SHARES MONTHS IN ADVANCE OF THE BRITISH COMPANY'S BUYOUT BID AND REAPED FOUR POINT THREE MILLION DOLLARS IN PROFIT AFTER THE BID BECAME PUBLIC THE JURY DELIBERATED FOR MORE THAN TWO DAYS THE U. S. ATTORNEY'S OFFICE SAID BEFORE FINDING MR. O'HAGAN GUILTY ON A TOTAL OF FIFTY SEVEN COUNTS OF SECURITIES FRAUD MAIL FRAUD AND MONEY LAUNDERING MR. O'HAGAN CONTENDED THAT HE NEVER POSSESSED ANY INSIDE INFORMATION AND THAT THE PILLSBURY STOCK PURCHASES WERE AN INVESTMENT BASED ON WIDESPREAD SPECULATION AT THE TIME THAT PILLSBURY WOULD COME INTO PLAY IN THE LATE NINETEEN EIGHTIES TAKEOVER BINGE NEITHER HE NOR HIS ATTORNEY COULD BE REACHED FOR COMMENT LATE YESTERDAY DORSEY AND WHITNEY HASN'T BEEN LINKED TO ANY WRONGDOING IN THE PILLSBURY MATTER MR. O'HAGAN PROSECUTORS CONTEND QUOTE USED A PORTION OF THE PROFITS FROM THE SALE OF THE PILLSBURY SECURITIES TO CONCEAL HIS PREVIOUS EMBEZZLEMENT OF AN ESTIMATED ONE MILLION DOLLARS FROM CLIENT TRUST FUNDS QUOTE IN NINETEEN NINETY MR. O'HAGAN WAS CONVICTED IN STATE COURT ON THEFT CHARGES AND DISBARRED FOR TAKING MONEY FROM TRUST ACCOUNTS THOSE FUNDS WERE REPAID GROUND ROUND RESTAURANTS INCORPORATED CITING A RECENT DROP IN ITS STOCK PRICE SAID IT WITHDREW ITS PROPOSED PUBLIC OFFERING FOR THIRTY FIVE MILLION DOLLARS OF CONVERTIBLE SUBORDINATED DEBENTURES AS A RESULT THE BOSTON RESTAURANT OPERATOR SAID IT WILL WRITE OFF EXPENSES OF ABOUT SIX HUNDRED FIFTY THOUSAND DOLLARS DURING ITS FISCAL SECOND QUARTER ENDING APRIL THIRD IN LAST YEAR'S SECOND QUARTER THE COMPANY HAD NET INCOME OF ONE POINT TWO MILLION DOLLARS OR ELEVEN CENTS A SHARE ON SALES OF FIFTY SIX POINT FOUR MILLION DOLLARS GROUND ROUND SAID IT KNEW OF NO CORPORATE DEVELOPMENTS TO EXPLAIN THE DROP IN ITS SHARE PRICE IN THE PAST TWO WEEKS TO SIX DOLLARS AND FIFTY CENTS FROM SEVEN POINT EIGHT SEVEN FIVE DOLLARS ON THE NASDAQ STOCK MARKET YESTERDAY GROUND ROUND SHARES ROSE TWELVE POINT FIVE CENTS TO SIX DOLLARS AND SEVENTY FIVE CENTS THE COMPANY SAID THE MOVE WON'T CHANGE ITS SCHEDULE FOR RESTAURANT OPENINGS THROUGH NINETEEN NINETY FIVE BEFORE THE WORLD BECOMES TOTALLY ENAMORED OF SUBCOMANDANTE MARCOS THE MAIN SPOKESMAN OF THE QUOTE ZAPATISTA QUOTE REBELS FIGHTING IN THE SOUTHERN STATE OF CHIAPAS ATTENTION SHOULD BE FOCUSED FOR JUST A MOMENT ON THE INDIAN AND MESTIZO PEASANTS WHO HAVE BEEN DISPLACED BY THE FIGHTING THEY DO NOT SHARE MARCOS'S EUROPEAN GOOD LOOKS NOR ARE THEY AS ELOQUENT OR AMUSING AS THE WELL EDUCATED SUBCOMANDANTE BUT THEIR STORIES ARE MORE POIGNANT THE ZAPATISTAS CAME IN AND TOOK ALL OUR FOOD AND KILLED OUR ANIMALS THEY'RE STILL LIVING IN OUR HOUSES SO WE HAVE TO CAMP HERE SAYS JESUS MORALES GESTURING TO THE CIVIC AUDITORIUM WHICH HAS BEEN TURNED INTO LIVING QUARTERS FOR ABOUT THREE HUNDRED DISPLACED FAMILIES THE AUDITORIUM IS RUNNING OUT OF POTABLE WATER MEDICAL SERVICES NOT TO MENTION THE THREE BATHROOMS ARE STRETCHED TO THE LIMIT AND MORE REFUGEES ARE ARRIVING DAILY FROM THE SURROUNDING FORESTS MR. MORALES IS NO FAN OF THE RULING INSTITUTIONAL REVOLUTIONARY PARTY THE P. R. I. WHICH HE SAYS HAS STOLEN EVERY ELECTION HE'S VOTED IN BUT IT IS THE ZAPATISTAS AGAINST WHOM HE RAGES THE LOUDEST LIFE WAS TOUGH ENOUGH FOR US HERE BEFORE NOW IT'S MUCH WORSE HE SAYS MOST REBELS APPEAR TO BE LOCAL PEASANTS WHO JOINED OUT OF FRUSTRATION FROM WORSENING REPRESSION BY CORRUPT LOCAL LEADERS KNOWN AS QUOTE CACIQUES QUOTE HOWEVER THE ZAPATISTA LEADERS AND THEIR SHADY FINANCIAL AND STRATEGIC SUPPORT BASE INCLUDE A MULTITUDE OF INTERNATIONAL POLITICAL SOCIAL AND RELIGIOUS FORCES WHOSE CONCERNS AND INTERESTS EXTEND BEYOND AND SOMETIMES CONFLICT WITH THOSE OF CHIAPAS'S PEASANTS THE PRIMARY THORN IN THE BODY POLITIC HERE IS THE DESTRUCTIVE ROLE OF CACIQUES AND THEIR HERETOFORE COZY RELATIONSHIP WITH THE RULING PARTY CACIQUES ACT AS THE EYES EARS AND VOTE GETTERS FOR THE P. R. I. IN RETURN THEY ARE GRANTED OFFICIAL RECOGNITION AS A COMMUNITY'S SOCIAL ECONOMIC AND JUDICIAL AUTHORITY IN SOME CASES THEY ARE POWERFUL LANDOWNERS OF EUROPEAN DESCENT WHO HOLD OFFICIAL IF UNCONTESTED PUBLIC OFFICES IN OTHER CASES THEY ARE SPANISH SPEAKING INDIANS WHO ASSUME LESS FORMAL TITLES SUCH AS VILLAGE ELDER AND THEY CONTROL P. R. I. APPROVED CONCESSIONS VITAL TO INDIAN COMMUNITIES SUCH AS FOOD AND LIQUOR STORES TRANSPORTATION SERVICES AND HOUSING IN ALL CASES THE CACIQUES ALLOW NO DISSENT AND THEIR WORD SUPERSEDES ESTABLISHED LAWS THOSE WHO PREFER TO OPERATE OUTSIDE THE CACIQUES' MONOPOLY CONCESSIONS ARE BANISHED FROM THEIR COMMUNITIES AND BEATEN OR KILLED IF THEY TRY TO RETURN KILLINGS ARE USED ONLY WHEN CACIQUES FEEL PEOPLE HAVE GROWN ACCUSTOMED TO BEATINGS SAYS ABDIAS TOVILLA JAIME A SAN CRISTOBAL LAWYER WHO WORKS ON BEHALF OF BANISHED INDIANS HE DISPLAYS A PHOTOGRAPH OF THE BADLY MANGLED BODY OF VICENTE MENDEZ VELASCO A MITONTIC INDIAN BEATEN TO DEATH IN APRIL AFTER RETURNING TO A COMMUNITY FROM WHICH HE HAD BEEN BANISHED ANOTHER PHOTO SHOWS HIS BEREFT WIFE AND SIX CHILDREN WITH SUCH FERTILE GROUND FOR REVOLT ZAPATISTA MILITANTS HAD LITTLE TROUBLE FINDING RECRUITS MANY OF THE REFUGEES IN LAS MARGARITAS CLAIM THAT ZAPATISTA LEADERS ARE EITHER NON INDIAN MEXICANS OR CENTRAL AMERICANS WE HEARD GUATEMALTECANS AND SALVADORANEANS GIVING ORDERS SAID SEVERAL PEASANT REFUGEES ON THE CLOUD COVERED ROAD FROM LAS MARGARITAS TO NEARBY COMITAN OF COURSE RUMORS SPREAD QUICKLY IN SMALL TOWNS UNDER DURESS NEVERTHELESS AMONG THE CLOTHING CAPTURED BY THE MILITARY WAS A SWEATSHIRT FROM A GUATEMALAN MILITARY POST MARKED GUATEMALA ZONA MILITAR NO. TWENTY THREE PETEN CAPTURED DOCUMENTS WHICH DATE FROM NINETEEN EIGHTY TWO TO THE PRESENT ARE RIFE WITH REFERENCES TO AND STRATEGY MANUALS FROM OTHER CENTRAL AMERICAN GUERRILLA GROUPS WHILE MARCOS AND HIS TOP COMMANDOS WERE WELL TRAINED IN MILITARY STRATEGY AND HAVE BEEN PHOTOGRAPHED CARRYING SOPHISTICATED WEAPONS AND COMMUNICATIONS EQUIPMENT MOST OF THE PEASANT FIGHTERS WERE FAR LESS PREPARED IN SOME CASES THEY WERE SENT TO THE FRONT LINES CARRYING PHONY WOODEN RIFLES WITH CRUDE SPEARS WIRED TO THE TIPS GENERAL MIGUEL GODINEZ COMMANDER OF THE MEXICAN ARMED FORCES IN CHIAPAS SAYS THEY WERE TRYING TO BAIT US INTO COMMITTING MASSACRES AGAINST POORLY ARMED PEASANTS TO WIN THE HUMAN RIGHTS BATTLE SOME MASSACRES APPARENTLY DID OCCUR BUT THE MEXICAN ARMY DESERVES NO MORE CONTEMPT THAN THOSE WHO SENT MEN INTO COMBAT WITH FAKE RIFLES ONE SOURCE OF MORAL IF NOT LOGISTICAL SUPPORT FOR THE GUERRILLAS COMES FROM THE ROMAN CATHOLIC ARCHDIOCESE OF SAN CRISTOBAL HEADED BY A NOTED LIBERATION THEOLOGIAN ARCHBISHOP SAMUEL RUIZ NOW THE OFFICIAL MEDIATOR IN NEGOTIATIONS BETWEEN THE REBEL LEADERS AND THE GOVERNMENT BISHOP RUIZ'S FIERY SERMONS OFTEN VEER TOO FAR TO THE LEFT FOR MANY PARISHIONERS THERE'S A BITTER SPLIT IN THE CATHOLIC COMMUNITY BETWEEN HIS SUPPORTERS AND DETRACTORS MANY PEOPLE JUST WANT TO GO TO CHURCH TO REFLECT ON THEIR FAITH WITHOUT A LOT OF POLITICS MIXED IN SAYS A LOCAL DOCTOR WHO PREFERRED NOT TO BE NAMED A CAGEY INTERVIEW SUBJECT BISHOP RUIZ DENIES PREACHING POLITICS FROM THE PULPIT BUT ADDS QUOTE I OPPOSE THE NEO LIBERAL MODERNIZATION OF THE ECONOMY NOT AS A POLITICAL GESTURE BUT BECAUSE THE CAPITALIST GLOBAL ECONOMY IS DEHUMANIZING ESPECIALLY TO THE INDIANS QUOTE WHEN ASKED WHETHER ZAPATISTA LEADERS ARE INDIAN OR NOT HE RESPONDS DOES THAT MAKE THEIR CAUSE ANY LESS JUST OF COURSE THE CAUSE OF DEFENDING INDIAN RIGHTS IS PERFECTLY JUST AND SOME GOOD MAY YET COME FROM THE RESOLUTION OF THE CONFLICT AND THE ATTENTION IT HAS FOCUSED ON THE DEPRIVATIONS HERE HOWEVER THE CYNICAL USE OF THE INDIANS AS CANNON FODDER OR EVEN THE INVOCATION OF THEIR PAIN TO NEGOTIATE ON BEHALF OF ANACHRONISTIC IDEOLOGIES SHOULD NOT BE TOLERATED IF THE RULE OF LAW AND NOT THE ARBITRARY WISHES OF CACIQUES AT LAST COMES TO CHIAPAS IT WILL COME AS A PART OF THE SAME MODERNIZATION PROCESS THAT IS INCREASING INDIVIDUAL RIGHTS ALL OVER MEXICO THE INDIANS MAY LOSE SOME OF THEIR COMMUNAL TRADITION AS SAMUEL RUIZ FEARS THEY MAY ALSO DECIDE TO VOTE FOR OPPOSITION PARTIES AS THE P. R. I. FEARS BUT THEIR RIGHTS AS MEXICAN CITIZENS MUST BE PROTECTED ABOVE ALL ELSE NO MATTER WHETHER THEIR CULTURE IS REVERED AS MORE IMPORTANT BY SOME OR REVILED AS LESS IMPORTANT BY OTHERS PRESIDENT CARLOS SALINAS HAS SHOWN BEFORE THAT HE IS CAPABLE OF STRONG EXECUTIVE ACTION TO ENFORCE THE RULE OF LAW JUST WEEKS AFTER BECOMING PRESIDENT IN NINETEEN EIGHTY EIGHT HE SENT FEDERAL TROOPS TO ARREST AN INFAMOUS UNION LEADER WHO HAD TURNED HIS PERSONAL MANDATE FROM THE P. R. I. INTO A MAFIA FIEFDOM IT IS TIME FOR SUCH ACTION AGAIN TO LOCK UP MURDEROUS CACIQUES THIS ACTION SHOULD NOT BE PREDICATED ON THE EDICTS OF SUBCOMANDANTE MARCOS BUT ON THE LONG OVERDUE EXERCISE OF JUSTICE MR. ASMAN EDITS THE AMERICAS COLUMN THE JAPANESE PERSONAL COMPUTER PRICE WAR IGNITED MORE THAN A YEAR AGO BY U. S. COMPANIES IS TAKING A TOLL ON N. E. C. CORPORATION'S HUGE MARKET SHARE AN INFLUENTIAL MARKET RESEARCH FIRM SAID APPLE COMPUTER INCORPORATED RACKED UP A HUGE GAIN IN SHARE WHILE COMPAQ COMPUTER CORPORATION PERFORMED BETTER THAN ANALYSTS' EXPECTATIONS AND INTERNATIONAL BUSINESS MACHINES CORPORATION PERFORMED WORSE N. E. C. WHICH HAS CONTROLLED NEARLY HALF OF THE JAPANESE P. C. MARKET FOR ALMOST A DECADE SAW ITS MARKET SHARE FALL TO FORTY NINE PERCENT IN NINETEEN NINETY THREE FROM FIFTY TWO PERCENT IN NINETEEN NINETY TWO THE JAPAN UNIT OF INTERNATIONAL DATA CORPORATION SAID THE COMPANY SHIPPED MORE COMPUTERS THAN EVER BEFORE ONE POINT TWO MILLION UNITS ACCORDING TO I. D. C. BUT WAS UNABLE TO KEEP UP WITH FIFTEEN PERCENT GROWTH IN THE OVERALL JAPANESE P. C. MARKET QUOTE WE DON'T FORESEE N. E. C. GETTING ANY WORSE THEIR SHIPMENTS WILL STAY ROUGHLY THE SAME QUOTE SAID DAVID KELLAR AN I. D. C. ANALYST THE MARKET IN A WORD IS GOING TO EXPAND AROUND N. E. C. THAT EXPANSION IS LARGELY DUE TO DEMAND CREATED BY LOW PRICED COMPUTERS FROM COMPAQ I. B. M. AND DELL COMPUTER CORPORATION WHEN THEY CRASHED INTO JAPAN IN LATE NINETEEN NINETY TWO AND EARLY NINETEEN NINETY THREE CAPITALIZING ON THEIR ECONOMIES OF SCALE AND THE COST AND PERFORMANCE ADVANTAGES OF THE WORLD WIDE I. B. M. P. C. STANDARD THE U. S. FIRMS HOPED TO UNDERCUT N. E. C.'S HIGH PRICES AND ERODE ITS MARKET SHARE THAT STRATEGY APPEARS TO BE WORKING THE REALITY IS THAT N. E. C.'S ARCHITECTURE CAN'T BE COMPETITIVE WITH A WORLD WIDE STANDARD IN THE MIDST OF A SEVERE PRICE WAR MR. KELLAR SAID RESULTS FOR THE U. S. COMPANIES HOWEVER HAVE BEEN MIXED I. D. C. SAID THAT COMPAQ SHIPPED FORTY FIVE THOUSAND P. C.S IN NINETEEN NINETY THREE FOR A TWO PERCENT SHARE OF THE MARKET UP FROM ELEVEN THOUSAND UNITS AND AN ZERO POINT FIVE PERCENT SHARE IN NINETEEN NINETY TWO I. D. C. ATTRIBUTED THAT PERFORMANCE WHICH WAS BETTER THAN THE FIRM EARLIER FORECAST TO COMPAQ'S CONTINUED PRICE CUTTING IN THE LATTER PART OF THE YEAR I. B. M. BY CONTRAST SLID TO A SIX POINT EIGHT PERCENT SHARE IN NINETEEN NINETY THREE FROM EIGHT PERCENT IN NINETEEN NINETY TWO I. D. C. SAID THE MARKET RESEARCH FIRM BLAMED I. B. M.'S DECLINE ON DIFFICULTIES IN SHIPPING ITS LOW PRICED P. S. SLASH V. DESKTOP AND THINKPAD LAPTOP COMPUTERS AND ON A LARGE INVENTORY THAT SKEWED THE COMPANY'S SHIPMENT FIGURES I. D. C. DIDN'T CALCULATE DELL'S P. C. SHIPMENTS SEPARATELY ONE UNEXPECTED BENEFICIARY OF THE PRICE WAR WAS APPLE WHOSE COMPUTERS HAVE LONG BEEN POPULAR BUT EXPENSIVE IN JAPAN I. D. C. SAID APPLE'S SHARE INCREASED TO THIRTEEN PERCENT IN NINETEEN NINETY THREE FROM EIGHT POINT EIGHT PERCENT IN NINETEEN NINETY TWO MOSTLY BECAUSE AN AGGRESSIVE PRICE CUTTING STRATEGY MADE APPLE'S COMPUTERS MORE AFFORDABLE THE AVERAGE RATE ON A CONVENTIONAL THIRTY YEAR MORTGAGE JUMPED TO SEVEN POINT THREE OH PERCENT THIS WEEK FOLLOWING THE FEDERAL RESERVE'S DECISION TO RAISE SHORT TERM INTEREST RATES LAST WEEK THE INCREASE UP FROM LAST WEEK'S SEVEN POINT OH EIGHT PERCENT IS BASED ON A PRELIMINARY SURVEY BY H. S. H. ASSOCIATES A PUBLISHER OF MORTGAGE RATES IN BUTLER N. J. THE RATE IS STILL HISTORICALLY LOW AND ANALYSTS DON'T EXPECT ANY RAPID SHORT TERM CHANGES MAJOR LENDERS IMMEDIATELY RAISED THEIR RATES AFTER THE FED'S ANNOUNCEMENT BUT AS THE SHOCK WORE OFF RATES STARTED TO MOVE DOWN AGAIN THIS WEEK TO YESTERDAY'S PRELIMINARY SEVEN POINT THREE OH PERCENT KEITH T. GUMBINGER AN ANALYST AT H. S. H. SAID THE FINAL RATE FOR THE WEEK WOULD LIKELY DROP SLIGHTLY LOWER RATES FELL AS LOW AS SIX POINT EIGHT THREE PERCENT IN OCTOBER BEFORE CRESTING AT SEVEN POINT FOUR OH PERCENT IN NOVEMBER SINCE THEN RATES HAVE BEEN DRIFTING UP AND DOWN UNTIL THIS WEEK'S SPIKE QUOTE MORTGAGE INTEREST RATES ARE EXPECTED TO REMAIN AT THEIR CURRENT LEVELS FOR THE NEAR TERM QUOTE SAID FRANK NOTHAFT AN ECONOMIST AT FREDDIE MAC WE DON'T FORESEE ANY FURTHER MOVES BY THE FED TO TIGHTEN MONETARY POLICY AN INVESTMENT FUND RUN BY LEON BLACK IS ATTEMPTING TO BECOME A BIGGER PLAYER IN THE RESTRUCTURING OF OLYMPIA AND YORK'S U. S. OPERATIONS MR. BLACK'S FUND APOLLO REAL ESTATE INVESTMENTS HAS OFFERED TO BUY ABOUT ONE HUNDRED FORTY MILLION DOLLARS OF DEBT SECURED BY SOME OF OLYMPIA AND YORK COMPANIES U.S.A. S. BEST PROPERTIES INCLUDING NEW YORK'S WORLD FINANCIAL CENTER THE MOVE FOLLOWS THE FUND'S PURCHASE IN NOVEMBER OF MORTGAGE BONDS SECURED BY THREE OTHER BUILDINGS IN NEW YORK FOR ABOUT ONE HUNDRED SIXTY MILLION DOLLARS IT'S UNCLEAR WHETHER MR. BLACK IS ATTEMPTING TO POSITION HIMSELF TO GAIN CONTROL OF O. AND Y. U. S. A. OR IS MERELY TRYING TO PROFIT FROM THE RESTRUCTURING OF THE COMPANY'S FIVE BILLION DOLLARS OF DEBT IN ANY CASE OBSERVERS SAY THE NEW DEBT HOLDING WOULD ALLOW MR. BLACK TO BECOME A THORN IN THE SIDE OF MORE SENIOR CREDITORS AS THE COMPANY CONTINUES EFFORTS TO RESTRUCTURE WITHOUT A BANKRUPTCY LAW FILING MR. BLACK FORMED THE APOLLO FUND LAST YEAR TO INVEST IN DISTRESSED REAL ESTATE UNLIKE THE NOVEMBER INVESTMENT IN O. AND Y. U. S. A. THE PROPOSED NEW DEBT HOLDING WOULDN'T GIVE MR. BLACK ANY DIRECT CLAIM ON PROPERTY BUT IT EVENTUALLY COULD ALLOW HIM TO CONVERT THE DEBT INTO AN EQUITY STAKE IN THE ENTIRE COMPANY QUOTE IF ANYONE WOULD LOOK TO BUY THIS POSITION THEY WOULD BE DOING SO WITH THE INTENT OF INFLUENCING THE OVERALL RESTRUCTURING QUOTE SAID AN INDIVIDUAL WITH KNOWLEDGE OF O. AND Y. U.S.A. S. DEBT IT'S A WAY TO TRY TO PLAY OLYMPIA AND YORK U. S. AS OPPOSED TO PLAYING A BUILDING AN APOLLO SPOKESMAN SAID MR. BLACK AND HIS CHIEF REAL ESTATE EXECUTIVE WERE OUT OF THE COUNTRY AND THE FIRM WOULDN'T COMMENT DEBT RESTRUCTURINGS OFTEN ATTRACT VULTURE INVESTORS SUCH AS MR. BLACK THE FORMER HEAD OF MERGERS AND ACQUISITIONS AT DREXEL BURNHAM LAMBERT INCORPORATED MR. BLACK IS KNOWN FOR BUYING DEBT OF TROUBLED COMPANIES AND PARLAYING THESE HOLDINGS INTO DOMINANT EQUITY POSITIONS APOLLO HASN'T YET MADE A FORMAL BID FOR THE DEBT WHICH IS CURRENTLY OWNED BY A BANK GROUP LED BY J. P. MORGAN AND COMPANY AN INDIVIDUAL FAMILIAR WITH THE NEGOTIATIONS SAID IN THE MEANTIME THE BANK IS EXPECTED TO SEEK ADDITIONAL OFFERS OTHER PARTIES UNDERSTOOD TO HAVE EXPRESSED AN INTEREST IN BUYING THE DEBT INCLUDE HONG KONG BILLIONAIRE LI KA SHING AND AN UNIDENTIFIED U. S. PENSION FUND THE DEBT IS IN PLAY IT'S VERY STRATEGIC IT'S ESSENTIALLY COLLATERALIZED BY ALL OF O. AND Y'S PRIME REAL ESTATE THE INDIVIDUAL SAID A J. P. MORGAN SPOKESMAN DECLINED TO COMMENT ON WHETHER THE GROUP WAS TALKING TO APOLLO BUT SAID IT WAS CONTINUING TO EXPLORE ALL OPTIONS FOR RECOVERING THE VALUE OF ITS ASSET INCLUDING THE SALE OF ITS LOAN AND OF COURSE FURTHER NEGOTIATIONS WITH O. AND Y. O. AND Y. U. S. A. IS A SUBSIDIARY OF TORONTO BASED OLYMPIA AND YORK DEVELOPMENTS LIMITED WHICH DURING THE NINETEEN EIGHTIES BECAME ONE OF THE WORLD'S BIGGEST PROPERTY DEVELOPERS BUT COLLAPSED IN NINETEEN NINETY TWO WHEN GLOBAL REAL ESTATE VALUES PLUNGED THE PARENT REORGANIZED UNDER CANADIAN BANKRUPTCY LAW LAST YEAR AND IS NOW EFFECTIVELY CONTROLLED BY ITS CREDITORS MOSTLY CANADIAN BANKS THE U. S. UNIT WHICH WASN'T PART OF THE CANADIAN BANKRUPTCY FILING IS CURRENTLY MEETING INTEREST PAYMENTS ON ITS DEBT BUT THE U. S. COMPANY IS ATTEMPTING TO RENEGOTIATE THE TERMS OF ITS OBLIGATIONS AS PART OF ITS OVERALL RESTRUCTURING EFFORT CREDITORS AND THE COMPANY SAY PROGRESS IS BEING MADE IN THE RESTRUCTURING TALKS IN THE MEANTIME THE COMPANY HAS SOLD SOME OF ITS SMALLER PROPERTIES INCLUDING RECENT SALES IN PORTLAND OREGON AND BOSTON TO OFFSET A SMALL OPERATING CASH DEFICIT EXPECTED IN NINETEEN NINETY FOUR THE J. P. MORGAN LED GROUP LENT THE MONEY TO O. AND Y. U. S. A. IN NINETEEN NINETY ONE IT IS SECURED BY THE COMPANY'S OWNERSHIP INTERESTS IN TOWERS A AND B. OF THE WORLD FINANCIAL CENTER IN OTHER MANHATTAN OFFICE PROPERTIES AT FIFTY NINE MAIDEN LANE AND TWO HUNDRED FORTY FIVE PARK AVENUE AND IN A LOS ANGELES BUILDING AS ONE OF THE LAST MAJOR LOANS EXTENDED TO THE COMPANY IT WAS CONSIDERED A VOTE OF CONFIDENCE IN PAUL REICHMANN THE COMPANY'S FORMER CONTROLLING SHAREHOLDER IN THE FACE OF SLUMPING REAL ESTATE MARKETS IF MR. BLACK WANTED TO ACQUIRE ANY OF THE REAL ESTATE THAT BACKS THE DEBT HE WOULD FIRST HAVE TO BUY OUT THE LENDERS THAT HAVE FIRST LIENS ON THE PROPERTIES O. AND Y. BUILT THE WORLD FINANCIAL CENTER WHICH IS ADJACENT TO THE WORLD TRADE CENTER IN DOWNTOWN MANHATTAN IN THE EARLY NINETEEN EIGHTIES AND THE COMPLEX IS CONSIDERED ONE OF O. AND Y'S MORE LUCRATIVE PROPERTIES THE BUILDINGS ALONG THE HUDSON RIVER HOUSE COMPANIES SUCH AS AMERICAN EXPRESS MERRILL LYNCH AND COMPANY AND DOW JONES AND COMPANY PUBLISHER OF THIS NEWSPAPER QUOTE THE WORLD FINANCIAL CENTER PROPERTIES AND TWO HUNDRED FORTY FIVE PARK AVENUE CLEARLY HAVE SOME VALUE OVER AND ABOVE THE OTHER MORTGAGE DEBT QUOTE SAID AN INDIVIDUAL WITH KNOWLEDGE OF O. AND Y. U.S.A. S. DEBT STILL SOME SEE ACQUIRING THE DEBT AS RISKY BECAUSE OF ITS JUNIOR RANKING THAT KIND OF DEBT IS VERY SUBJECT TO COMPLETE ELIMINATION IN A CHAPTER ELEVEN BANKRUPTCY LAW FILING SAID EDWIN NORDHOLM AN EXECUTIVE WITH BATTERY PARK HOLDINGS INCORPORATED WHICH OWNS A MINORITY INTEREST IN THE WORLD FINANCIAL CENTER BATTERY PARK HOLDINGS IS FIFTY PERCENT OWNED BY TORONTO'S BRONFMAN FAMILY THE J. P. MORGAN LED GROUP WHICH ALSO INCLUDES BANK OF MONTREAL AND SEVERAL EUROPEAN BANKS HAS TAKEN A HARD LINE WITH O. AND Y. U. S. A. FOR SOME TIME THE GROUP IN NINETEEN NINETY TWO SEIZED AN INTEREST RATE SWAP AGREEMENT THAT ALSO SERVED AS COLLATERAL TO THE LOAN THE EXACT AMOUNT OF THE LOAN CURRENTLY OUTSTANDING IS IN DISPUTE BECAUSE OF THE DIFFICULTY OF ASSIGNING A CASH VALUE TO THE SWAP AGREEMENT FOOD LION INCORPORATED REPORTED A FOURTH QUARTER LOSS OF SEVENTY THREE MILLION DOLLARS OR FIFTEEN CENTS A SHARE REFLECTING A MAJOR CHARGE FOR CLOSING UNPROFITABLE STORES THE SALISBURY N. C. SUPERMARKET CHAIN SAID THE LOSS COMPARED WITH EARNINGS OF TWENTY SEVEN POINT THREE MILLION DOLLARS OR SIX CENTS A SHARE IN NINETEEN NINETY TWO'S FOURTH QUARTER REVENUE ROSE SIX PERCENT TO TWO POINT FOUR OH BILLION DOLLARS FROM TWO POINT TWO SEVEN BILLION DOLLARS AS EXPECTED THE COMPANY ESTABLISHED A PRETAX RESERVE OF ONE HUNDRED SEVENTY POINT FIVE MILLION DOLLARS IN THE QUARTER TO COVER COSTS ASSOCIATED WITH STORE CLOSINGS LAST MONTH FOOD LION SAID IT WOULD CLOSE EIGHTY EIGHT STORES THIS YEAR FOR ALL OF NINETEEN NINETY THREE FOOD LION REPORTED THAT NET INCOME INCLUDING THE RESERVE FELL TO THREE POINT NINE MILLION DOLLARS OR ONE CENT A SHARE FROM ONE HUNDRED SEVENTY EIGHT MILLION DOLLARS OR THIRTY SEVEN CENTS A SHARE A YEAR EARLIER REVENUE ROSE SIX PERCENT TO SEVEN POINT SIX ONE BILLION DOLLARS FROM SEVEN POINT TWO OH BILLION DOLLARS VIACOM INCORPORATED ACCUSED RIVAL Q. V. C. NETWORK INCORPORATED OF BREAKING THE BIDDING RULES IN THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INCORPORATED BY TALKING ABOUT POSSIBLE FUTURE PURCHASES OF Q. V. C.'S STOCK SOME ANALYSTS AND INVESTORS WHO ATTENDED A MEETING TUESDAY WITH Q. V. C. CHAIRMAN BARRY DILLER SAID HE INDICATED THE CABLE SHOPPING SERVICE WAS EXPLORING WAYS TO BOLSTER THE VALUE OF Q. V. C. SHARES BEING OFFERED FOR PARAMOUNT INCLUDING POSSIBLE PLANS FOR Q. V. C.'S INVESTORS TO ANNOUNCE FUTURE PURCHASES OF Q. V. C. STOCK BUT Q. V. C. HAS SAID IT MADE NO SUCH PROMISES OR HINTS IN THOSE MEETINGS VIACOM CALLED THE REPORTED STATEMENTS QUOTE CRUDE ATTEMPTS AT MARKET MANIPULATION QUOTE AND QUOTE A BACKDOOR ATTEMPT BY Q. V. C. TO CHANGE ITS OFFER AFTER THE FEBRUARY FIRST DEADLINE ESTABLISHED BY THE PARAMOUNT BOARD QUOTE TRADERS HAVE UNTIL MONDAY TO DECIDE WHICH OFFER TO ACCEPT LAST NIGHT Q. V. C. RESPONDED THAT VIACOM IS EITHER SUING OR COMPLAINING OR JUST MAKING NOISE WE HAVE DONE NOTHING IMPROPER A PERSON CLOSE TO Q. V. C. ALSO SAID THE COMPANY MIGHT ISSUE A STATEMENT ON THE ISSUES AS EARLY AS TODAY OR THAT IT MIGHT EVEN PLACE NEWSPAPER ADS ON MONDAY TO EXPLAIN ITS POSITION MELVILLE CORPORATION RYE N. Y. REPORTED FOURTH QUARTER NET INCOME SOARED COMPARED WITH YEAR EARLIER RESULTS THAT INCLUDED A STRATEGIC REALIGNMENT CHARGE OF TWO HUNDRED TWENTY TWO MILLION DOLLARS OR TWO DOLLARS AND THIRTEEN CENTS A SHARE THE SPECIALTY RETAILER SAID EARNINGS ROSE TO TWO HUNDRED THIRTY SEVEN POINT FOUR MILLION DOLLARS OR TWO DOLLARS AND TWENTY TWO CENTS A SHARE FROM THIRTY SEVEN POINT TWO MILLION DOLLARS OR THIRTY TWO CENTS A SHARE THE PREVIOUS YEAR WITHOUT THE REALIGNMENT CHARGE NINETEEN NINETY TWO FOURTH QUARTER EARNINGS WERE TWO HUNDRED FIFTY NINE POINT TWO MILLION DOLLARS OR TWO DOLLARS AND FORTY FIVE CENTS A SHARE SALES EDGED UP TO THREE POINT FIVE ONE BILLION DOLLARS FROM THREE POINT FOUR NINE BILLION DOLLARS THE LATEST QUARTER HAD ONE MORE SELLING DAY THAN THE YEAR AGO QUARTER SAME STORE SALES IN THE PERIOD DECREASED ZERO POINT THREE PERCENT FOR THE YEAR EARNINGS JUMPED TO THREE HUNDRED THIRTY ONE POINT EIGHT MILLION DOLLARS OR THREE DOLLARS A SHARE FROM ONE HUNDRED THIRTY THREE POINT FOUR MILLION DOLLARS OR ONE DOLLAR AND THIRTEEN CENTS A SHARE BESIDES THE REALIGNMENT CHARGE A YEAR AGO MELVILLE RECORDED A CHARGE OF TWENTY TWO POINT SIX MILLION DOLLARS OR TWENTY ONE CENTS A SHARE FOR ACCOUNTING CHANGES IN RETIREMENT BENEFITS SALES FOR THE YEAR WHICH HAD ONE LESS SELLING DAY THAN THE PREVIOUS YEAR WERE ABOUT FLAT AT TEN POINT FOUR FOUR BILLION DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE STOCK CLOSED AT THIRTY NINE DOLLARS AND TWENTY FIVE CENTS UP ONE POINT ONE TWO FIVE DOLLARS JUST ABOUT THE SAME TIME OFFICER BOB GEARY OF THE SAN FRANCISCO POLICE DEPARTMENT WON THE RIGHT TO WALK HIS BEAT WITH A VENTRILOQUIST'S DUMMY THE POLICE IN MY HOMETOWN OF PORTLAND OREGON INTRODUCED A POT BELLIED PIG NAMED HARLEY TO THE CRIME SQUAD I WAS TORN BETWEEN THE PIG AND THE DUMMY BUT OPTED TO INTERVIEW BRENDAN O'SMARTY THE LITTLE WOODEN POLICE OFFICER HE AT LEAST COULD COMMUNICATE AS LONG AS HE STOOD REAL CLOSE TO OFFICER GEARY THE PORTLAND PIG ON THE OTHER HAND COULD ONLY GRUNT AND SNORT AS HE WENT ABOUT HIS BUSINESS OF SNIFFING OUT ILLEGAL DRUGS BUT OFFICER GEARY A TWENTY FOUR YEAR SAN FRANCISCO POLICE VETERAN HAD TROUBLE FITTING ME INTO HIS AND BRENDAN'S SCHEDULE A TRIP TO CHICAGO FOR AN APPEARANCE ON QUOTE THE JERRY SPRINGER SHOW QUOTE WOULD TAKE PRIORITY OVER A WALL STREET JOURNAL INTERVIEW YOU UNDERSTAND HE SAID I UNDERSTOOD SINCE THE NOVEMBER ELECTION WHEN SAN FRANCISCO VOTERS SAID YES TO PROPOSITION DOUBLE B. SHALL IT BE THE POLICY OF THE PEOPLE OF SAN FRANCISCO TO ALLOW POLICE OFFICER BOB GEARY TO DECIDE WHEN HE MAY USE HIS PUPPET BRENDAN O'SMARTY WHILE ON DUTY OFFICERS GEARY AND O'SMARTY HAVE BECOME MEDIA CELEBS BY THE TIME I GOT TO THEM THEY ALREADY HAD SAT THROUGH A SURFEIT OF NEWSPAPER MAGAZINE T. V. AND RADIO INTERVIEWS AND THERE WERE MORE TO COME IN FACT OUR ORIGINAL PLAN TO WALK OFFICER GEARY'S NORTH BEACH BEAT TOGETHER WAS SCRAPPED AT THE LAST MINUTE BECAUSE THAT WOULD HAVE CUT INTO THE TIME HE AND HIS DUMMY NEEDED FOR A T. V. INTERVIEW LATER IN THE DAY YOU UNDERSTAND HE SAID I UNDERSTOOD OFFICER GEARY HUGGED ME WHEN WE MET SQUEEZING ME WITH ENORMOUS BICEPS THAT BULGED FROM HIS SHORT SLEEVED UNIFORM SPEAKING EARNESTLY AND LOOKING ME STRAIGHT IN THE EYE HE TOLD ME HE WAS SKINNY AS A KID BUT NOW I DO UNDERWEAR ADS A LIFELONG BACHELOR HE SAID HE IS REGULARLY PURSUED BY WOMEN WHO VIEW HIM AS A KIND OF RENAISSANCE MAN ABLE TO DEFEND MYSELF HAVING BOXING SKILLS AND HAVING A PUPPET BRENDAN O'SMARTY IS A BIG PART OF HIS LIFE THOUGH OFFICER GEARY STOPS SHORT OF TUCKING HIS WHITTLED PARTNER IN AT NIGHT BRENDAN SLEEPS IN A LOCKER AT CENTRAL STATION BUT DURING MY VISIT TO THE PRECINCT THE PUPPET PLAYED SENTRY ON A DESKTOP REAL LIVE COPS PASSED TO AND FRO SOMETIMES WITH HANDCUFFED CITIZENS IN TOW BRENDAN IN FULL UNIFORM AND PACKING A PLASTIC SIDEARM NEVER TWITCHED BRENDAN'S FLESH AND BLOOD COUNTERPART EXPLAINED THEIR PARTNERSHIP AND HOW IT HAS MADE THEM FAMOUS IT'S ALL ROOTED IN THE CONCEPT OF COMMUNITY POLICING AND THE CHIEF'S CALL TO DEVISE QUOTE CREATIVE AND INGENIOUS QUOTE METHODS FOR POSITIVE INTERACTION WITH THE COMMUNITY HOWEVER OFFICER GEARY'S SUPERVISORS DECIDED THAT WALKING THE BEAT WITH A DUMMY AND TALKING TO PEOPLE IN A NASAL WHINY VOICE WHILE MAKING THE DUMMY'S MOUTH MOVE WAS NOT CREATIVE AND INGENIOUS BUT WAS WELL DUMB OFFICER GEARY ALREADY HAD INVESTED HOURS OF PRACTICE IN FRONT OF THE MIRROR WITH A STICK HELD BETWEEN HIS LIPS SO HE WOULDN'T MOVE THEM THE DUMMY ITSELF HAD SET HIM BACK ONE THOUSAND SEVEN HUNDRED FIFTY DOLLARS NOT TO MENTION THE TWO HUNDRED FIFTY DOLLAR PRICE TAG ON A CUSTOM MADE MINIATURE SAN FRANCISCO POLICE UNIFORM AS WELL AS A BADGE NUMBER ONE HALF AND A TINY GUN HELD IN A LEATHER HANDCUFFS CASE EVERYBODY ON HIS BEAT SEEMED TO LIKE BRENDAN AND OFFICER GEARY HAD FOUND SEVERAL OCCASIONS TO USE THE DUMMY AS A NONLETHAL POLICE TOOL ONCE HE BROKE UP A BARROOM BRAWL BY THRUSTING THE DUMMY INTO THE COMBATANTS' FACES AND HAVING BRENDAN WHINE FREEZE LIKE A POPSICLE THERE WAS A MOMENT OF HESITATION SO BRENDAN SEIZED THE OPPORTUNITY TO URGE THEM TO TAKE A CHILL PILL WHEN THE DRUNKEN BRUTES BEGAN TO SNICKER OFFICER GEARY REALIZED THAT ONCE AGAIN HE AND HIS SIDEKICK HAD DISARMED PEOPLE WITH LAUGHTER ON ANOTHER OCCASION BRENDAN CAME TO A DRUG BUST AND HIS LITTLE LEGS DANGLING FROM OFFICER GEARY'S ARM READ A SUSPECT HIS MIRANDA RIGHTS IT MATTERED NOT A WHIT THAT THE ARRESTED MAN UNDERSTOOD NO ENGLISH BRENDAN'S MY WOODEN ESPERANTO EXPLAINS OFFICER GEARY IN SPITE OF THE FACT THAT BRENDAN WAS A BIG HIT WITH THE CITIZENS WHO ACTUALLY LINED UP FOR SAMPLES OF PUPPET PENMANSHIP SCRAWLED WITH OFFICER GEARY'S LEFT HAND THE POLICE BRASS WERE NOT AMUSED THEY FELT THAT BESIDES BEING SILLY CARRYING A PUPPET WOULD HINDER AN APPROPRIATE POLICE RESPONSE TO CRIME ALTHOUGH OFFICER GEARY COUNTERS I WOULD SET HIM ASIDE A LOT FASTER THAN ANOTHER OFFICER WOULD ABANDON A COFFEE AND A DOUGHNUT OFFICER GEARY WAS ORDERED TO SUBMIT A WRITTEN REQUEST WELL IN ADVANCE OF WHENEVER HE WANTED TO POUND THE PAVEMENT WITH THE PUPPET HE PROTESTED PUSH CAME TO SHOVE AND FUELED BY OFFICER GEARY'S OWN INVESTMENT OF TWELVE THOUSAND DOLLARS THE ISSUE FOUND ITS WAY ONTO THE NOVEMBER BALLOT VICTORY WAS SWEET REPORTERS FROM ALL OVER THE WORLD SUDDENLY APPEARED AT CENTRAL STATION'S DOORSTEP OFFICER GEARY GOT TONGUE TIED WHEN WE FOUND OUT WE HAD WON BRENDAN WAS TALKING WITH MY LIPS MOVING AND I WAS TALKING WITH HIS LIPS MOVING THEY DIDN'T KNOW WHO WAS WHO QUOTE BUT BY NOW OFFICER GEARY HAS REGAINED HIS ON AIR ELOQUENCE HE REMINDED ME THAT HE HAD TO CUT OUR INTERVIEW SHORT BECAUSE HE WAS EXPECTED AT A TELEVISION STATION I ASKED HIM AT LEAST FOR A MOMENT TO PRETEND WE AND BRENDAN O'SMARTY WERE WALKING THE BEAT SO I COULD TRY TO IMAGINE IT SO WHILE HIS FELLOW OFFICERS SMIRKED AND MADE GAGGING GESTURES IN THE BACKGROUND OFFICER GEARY PARADED HIS PUPPET AROUND THE ROOM WHILE TALKING TO IMAGINARY PEOPLE IN BRENDAN'S WHINY VOICE I ASSURED OFFICER GEARY I UNDERSTOOD AS HE PACKED UP BRENDAN AND RUSHED OFF TO THE T. V. STUDIO BUT TO BE HONEST I FELT SHORTCHANGED BY THE DIMINUTIVE DUMMY BRENDAN O'SMARTY MAY HAVE BEEN PINT SIZED BUT I GUESS HE WAS JUST TOO BIG A STAR FOR ME I WONDER IF THAT PIG STILL HAS HIS FEET ON THE GROUND OR IF HE IS NOW SCHEMING TO SUCCEED TONYA HARDING AS PORTLAND'S MEDIA STAR PERHAPS HE STILL DOES INTERVIEWS WITH PEOPLE WHO DON'T HAVE THEIR OWN TALK SHOW I THINK I'LL HAVE MY PEOPLE CALL THE PIG'S PEOPLE AND MAYBE WE CAN DO LUNCH MS. HAUSER IS A WRITER IN PORTLAND A U. S. DISTRICT JUDGE DECLARED A WASHINGTON STATE LAW LIMITING CONGRESSIONAL TERMS UNCONSTITUTIONAL IN A TEST CASE OF THE ABILITY OF STATES TO RESTRICT THE SERVICE OF FEDERAL LAWMAKERS THE DECISION IS A VICTORY FOR HOUSE SPEAKER THOMAS FOLEY D. WASHINGTON WHO BROUGHT THE COURT CHALLENGE AFTER WASHINGTON VOTERS ENACTED THE LAW BY POPULAR INITIATIVE IN NINETEEN NINETY TWO PROPONENTS OF THE MEASURE ONE OF FIFTEEN SUCH LAWS THAT STATES HAVE PASSED SAID THEY WOULD APPEAL THE RULING THE ISSUE IS EXPECTED TO BE RESOLVED BY THE U. S. SUPREME COURT JUDGE WILLIAM DWYER HELD THAT THE WASHINGTON LAW WAS INVALID BECAUSE IT ADDED QUALIFICATIONS FOR MEMBERS OF CONGRESS BEYOND THOSE SPELLED OUT IN THE U. S. CONSTITUTION THE OPINION IS CONSIDERED THE FIRST DEFINITIVE RULING ON THE ISSUE BY A FEDERAL JUDGE THE WASHINGTON INITIATIVE PROHIBITED INCUMBENTS FROM HAVING THEIR NAMES LISTED ON LOCAL BALLOTS AFTER SPECIFIED LENGTHS OF SERVICE SIX YEARS FOR HOUSE MEMBERS AND TWELVE YEARS FOR SENATORS PROPONENTS HAD ARGUED THE MEASURE WAS WITHIN STATES' POWER TO REGULATE ELECTIONS BEFORE THE OLYMPICS THERE WAS THE CHEESE SLICER IT WAS THE MIDDLE OF THE ROARING TWENTIES BUT THE ONLY PLACE ROARING IN LITTLE LILLEHAMMER WAS THE HOUSE OF THOR BJORKLUND EVERY MORNING AT BREAKFAST FATHER THOR SERVED UP CHEESE TO HIS NINE CHILDREN AND EVERY MORNING THE OFFSPRING BITTERLY BICKERED THAT ONE WAS GETTING A BIGGER SLICE THAN THE OTHERS FED UP WITH THE WHINING THOR DEVELOPED A DEVICE THAT CUT IN EQUAL PROPORTIONS BEHOLD THE CHEESE SLICER THE WORLD FINALLY BLESSED WITH FAIRNESS IN CHEESE BEAT A PATH TO LILLEHAMMER'S DOOR IT WASN'T LONG THOUGH BEFORE OTHERS FIGURED OUT THE SECRET OF THE SIMPLE SLICER AND STARTED MAKING THEIR OWN LILLEHAMMER WENT BACK INTO HIBERNATION NOW SEVEN DECADES LATER HERE COME THE WINTER OLYMPICS BESTOWED UPON THIS INLAND REGION OF NORWAY TO MUFFLE ITS COMPLAINING ABOUT BEING PASSED OVER BY THE OFFSHORE OIL BOOM ONCE AGAIN THE WORLD IS AT LILLEHAMMER'S FEET SO WHAT KIND OF PLACE IS THIS LILLEHAMMER FAVORED AMONG WINTER PLAYGROUNDS WITH A SECOND CHANCE AT IMMORTALITY IT IS TINY THINK OF LILLEHAMMER AS LILLIPUT WITH TWENTY THREE THOUSAND SIX HUNDRED CITIZENS LILLEHAMMER IS THE SECOND SMALLEST CITY EVER TO HOST THE WINTER OLYMPICS BEHIND LAKE PLACID BUT LAKE PLACID HAD GREATER NEW YORK LILLEHAMMER HAS GREATER OPPLAND COUNTY WHERE SIXTY TWO PERCENT OF THE LAND IS MOUNTAINS THE REST IS MAINLY COVERED WITH FORESTS AND FARMS WHICH YIELD THE AREA'S TWO MAIN PRODUCTS PLANKS AND POTATOES IT IS BRAVE THIS LILLIPUT STOOD UP TO ITS GULLIVER COCA COLA COMPANY THE GIANT FROM ATLANTA HAS BEEN A SPONSOR OF THE OLYMPICS SINCE BEFORE THE CHEESE SLICER AND NORMALLY WHAT COKE WANTS COKE GETS IN LILLEHAMMER COKE WANTED TO PUT UP ITS FAMOUS RED AND WHITE SIGNS ALL OVER TOWN LILLEHAMMER SAID NO ONE NEWSPAPER OBJECTED TO COKE'S QUOTE PAINTING THE CITY RED QUOTE LOCAL ENVIRONMENTALISTS DUBBED IT AESTHETIC POLLUTION THE BATTLE MARVELS ARNE HOVE ODEGARD LILLEHAMMER'S DIRECTOR OF OLYMPIC BUSINESS WAS FRONT PAGE NEWS FOR FOURTEEN STRAIGHT DAYS A COMPROMISE WAS REACHED THERE WILL STILL BE PLENTY OF COKE SIGNS AROUND TOWN BUT GENERALLY BIG BILLBOARDS ARE OUT PARTICULARLY ALONG STORGATEN THE QUAINT PEDESTRIAN SHOPPING STREET LILLEHAMMER'S AUDACITY WAS CATCHING IN THE NEIGHBORING CITY OF HAMAR COKE HUNG A HUGE RED SKATE ADORNED WITH THE COKE LOGO FROM THE RAFTERS OF THE SPEEDSKATING ARENA LOCAL AUTHORITIES ORDERED THE SKATE REMOVED ON GROUNDS OF UGLINESS THE ONLY THING THEY WANT TO SEE HANGING IN THEIR ARENA IS A SEVENTY FIVE FOOT LONG WOODEN CHAIN CARVED FROM A SINGLE BIRCH TREE BY A SOLITARY MAN WORKING STEADILY FOR SIX YEARS NO ONE REALLY KNOWS WHAT IT SYMBOLIZES EXCEPT PERHAPS THE PAUCITY OF ENTICING NIGHT LIFE IN THE REGION I GUESS THE ARTIST HAD NOTHING BETTER TO DO WITH HIS TIME SAYS AN ARENA TOUR GUIDE IT IS GREEN THE LOCATION OF THE ARENA IN HAMAR SHAPED LIKE AN OVERTURNED VIKING SHIP WAS MOVED ONE HUNDRED YARDS SO AS NOT TO DISTURB THE TWO HUNDRED TEN SPECIES OF MIGRATORY BIRDS WHO ANNUALLY REST ON NEARBY WETLANDS PRODDED BY ENVIRONMENTALISTS THE BUILDERS EVEN ROTATED THE ARENA SO THE ENTRANCE DOESN'T FACE THE RESERVE SPARING THE BIRDS THE SPECTACLE OF THOUSANDS OF FLAG WAVING HORN TOOTING PEOPLE A DAY AFTER FIRST OPPOSING THE OLYMPICS AS A RESOURCE WASTING CIRCUS THE NORWEGIAN SOCIETY FOR THE CONSERVATION OF NATURE REGROUPED TO FORM PROJECT ENVIRONMENT FRIENDLY OLYMPICS IT SUCCESSFULLY LOBBIED THE OLYMPIC ORGANIZERS TO IMPOSE A SEVEN THOUSAND DOLLAR FINE FOR EACH PINE TREE DAMAGED DURING CONSTRUCTION OF THE BOBSLED AND LUGE RUNS OVERSAW TOPSOIL RECLAMATION AT THE SKI JUMP AND CROSS COUNTRY BIATHLON FACILITIES AND CHALLENGED COKE TO REDUCE THE PLASTIC CONTENT OF ITS CUPS SO AS TO MAKE THEM MORE BIODEGRADABLE AND IN A CULINARY BREAKTHROUGH THE PLATES AND CUTLERY USED IN OLYMPIC CAFETERIAS WILL BE MADE OF POTATO AND CORN STARCH AND THUS WILL BE EDIBLE BUT THE ENVIRONMENTALISTS PROUD OF THESE VICTORIES AREN'T ENTIRELY SATISFIED THE PLATES TASTE LIKE STYROFOAM SAYS OLAV MYRHOLT MANAGER OF THE ENVIRONMENT FRIENDLY PROJECT QUOTE NEEDS SOME LEMON DROPS QUOTE IT IS SECURE IN NORWAY THE POLICE DON'T CARRY GUNS AND THEY WON'T AT THE OLYMPICS EITHER BUT THERE WILL STILL BE PLENTY OF FIREPOWER LURKING BEHIND THE TREES AND SNOWBANKS LILLEHAMMER'S PUNY FORCE OF TWO DOZEN POLICE WILL BE ASSISTED BY TWO THOUSAND TWO HUNDRED OFFICERS BROUGHT IN FROM AROUND NORWAY PLUS SOME FIVE HUNDRED ARMY SOLDIERS IN ADDITION TO CROWD CONTROL THEY WILL BE ON GUARD AGAINST A SPECTRUM OF TERRORIST THREATS RANGING FROM AMERICAN ANTIABORTIONISTS NORWAY HAS LIBERAL ABORTION LAWS ANTIWHALING PROTESTERS NORWAY PERSISTS WITH ITS WHALING INDUSTRY AND PALESTINE LIBERATION ORGANIZATION HARD LINERS NORWAY HAS HOSTED THE BREAKTHROUGH MIDDLE EAST PEACE TALKS IT IS TRADITIONAL FOR THE FIRST TIME IN OLYMPIC ANNALS THE MASCOT WILL ACTUALLY BE A PERSON IN THIS CASE TWO PEOPLE HAKON AND KRISTIN HISTORICAL FIGURES FROM THE THIRTEENTH CENTURY WHO WILL BE PLAYED BY SEVERAL PAIRS OF NORWEGIAN CHILDREN HAKON HAKONSSON HEIR TO THE THRONE WAS BORN AMID A RAGING CIVIL WAR BETWEEN THE BIRCHLEGS AND THE BAGLERS IN ONE THOUSAND TWO HUNDRED SIX THE BIRCHLEGS SO CALLED BECAUSE THEY WRAPPED THEIR LEGS IN BIRCH BARK TO KEEP WARM WERE FORCED TO FLEE OSLO WITH THE INFANT HEADING NORTH ON SKIS THEY SPENT CHRISTMAS IN LILLEHAMMER AND THEN CONTINUED THROUGH A BLIZZARD UNTIL HAKON WAS SAFE HAKON'S AUNT KRISTIN LATER MARRIED THE BAGLER KING RESULTING IN AN AMICABLE END TO THE WAR IN ONE THOUSAND TWO HUNDRED SEVENTEEN HAKON WAS CROWNED THE ONE TRUE KING OF NORWAY REIGNING UNTIL ONE THOUSAND TWO HUNDRED SIXTY THREE THERE'S MORE THE STICK FIGURE PICTOGRAMS IDENTIFYING THE INDIVIDUAL OLYMPIC EVENTS ARE INSPIRED BY A FOUR THOUSAND YEAR OLD STONE ETCHING OF A PERSON SKIING THE GOLD SILVER AND BRONZE MEDALS WILL BE SET IN LOCALLY MINED GRANITE GIDDY WITH STONE AGE TRADITION THE OLYMPIC ORGANIZERS EVEN SEARCHED THE COUNTRY TO FIND SOMEONE ABLE TO IGNITE THE TORCH FOR THE START OF ITS RELAY AROUND NORWAY BY RUBBING TWO STICKS TOGETHER NORWEGIAN CULTURE WILL ALSO DOMINATE TOMORROW'S OPENING CEREMONIES THERE WILL BE FOLK COSTUMES FOLK SONGS AND PLENTY OF REINDEER THE KING IS SCHEDULED TO ARRIVE BY HORSE DRAWN SLEIGH TROLLS MAY EMERGE FROM UNDER THE SKI JUMP THROUGHOUT LILLEHAMMER THERE IS EVEN A NOD TO THE TOWN'S PAST GILDED AGE STANDING AMONG THE FOREST OF OFFICIAL PRODUCTS SKIS SWEATERS THERMAL UNDERWEAR MOUNTAIN RESCUE SLEDS IS THE OFFICIAL OLYMPIC CHEESE SLICER SOME SEE IT AS A METAPHOR FOR THE GAMES' EGALITARIANISM BUT THE LOCALS PARTICULARLY THOSE WITH MANY CHILDREN KNOW BETTER IT IS SIMPLY A MUST AT THE BREAKFAST TABLE GITANO GROUP INCORPORATED WHICH RECENTLY PUT ITSELF UP FOR SALE SAID IT EXPECTS TO REPORT FOURTH QUARTER NET INCOME OF ABOUT FOUR MILLION DOLLARS AND A NARROWER NET LOSS FOR ALL OF NINETEEN NINETY THREE NEW YORK BASED GITANO WHICH HAS SPENT THE PAST YEAR DOWNSIZING ITS JEANS AND BUDGET APPAREL BUSINESS SAID THAT IT EXPECTS TO POST A FOURTH QUARTER PROFIT COMPARED WITH A NET LOSS OF ONE HUNDRED FORTY SIX MILLION DOLLARS THE YEAR EARLIER WHEN IT HAD ONE HUNDRED MILLION DOLLARS IN RESTRUCTURING CHARGES FOR ALL OF NINETEEN NINETY THREE GITANO EXPECTS TO REPORT A NET LOSS OF FORTY FIVE MILLION DOLLARS COMPARED WITH A NINETEEN NINETY TWO NET LOSS OF TWO HUNDRED THIRTY EIGHT MILLION DOLLARS SINCE GITANO PUT ITSELF ON THE BLOCK LAST MONTH ITS MANAGEMENT HAS BEEN QUOTE HOLDING DISCUSSIONS WITH A NUMBER OF INTERESTED PARTIES QUOTE THE COMPANY SAID IN A NEWS RELEASE GITANO REITERATED THAT IT ISN'T UNLIKELY THAT A SALE OF GITANO WILL REALIZE AN AMOUNT IN EXCESS OF THE ONE HUNDRED THIRTY MILLION DOLLARS GITANO OWES TO ITS SECURED LENDERS THE COMPANY HAS PHASED OUT ITS MANUFACTURING BUSINESSES AND NOW IS A MARKETER OF APPAREL USING THE GITANO LABEL GITANO GROUP INCORPORATED WHICH IS UP FOR SALE REITERATED LAST WEEK THAT IT IS UNLIKELY THAT A SALE OF GITANO WILL REALIZE AN AMOUNT IN EXCESS OF THE ONE HUNDRED THIRTY MILLION DOLLARS GITANO OWES TO ITS SECURED LENDERS THE QUOTE WAS MISSTATED IN AN ARTICLE FRIDAY Q. IS THERE A COMPANY TO WHICH YOU SOMETIMES LIKEN THE N. B. A. A WELL I OFTEN SAY WHEN I'M ASKED TO DESCRIBE WHAT WE DO THAT OUR ASPIRATION OUR FOCUS IS LIKE THE DISNEY COMPANY Q. SO YOU MODESTLY ADMIT YOU HAVE TWENTY SEVEN MAGIC KINGDOMS I TAKE IT A YES OR WE TRY TO MAKE THEM INTO TWENTY SEVEN MAGIC KINGDOMS THEY DON'T HAVE QUITE AS MANY ANNUAL ADMISSIONS AS DISNEY WORLD DOES BUT THEY ARE GETTING CLOSE THUS DID COMMISSIONER DAVID STERN RECENTLY DEFINE HIS NATIONAL BASKETBALL ASSOCIATION THE EXCHANGE ALSO DEFINES HIS CURRENT PREDICAMENT HE REALLY CAN NOW IMMODESTLY COMPARE HIS LEAGUE TO THE THEME PARK GIANT BUT HE MADE THE STATEMENT FROM A WITNESS STAND IN CHICAGO ONE OF SEVERAL FRONTS WHERE BUSINESS N. B. A. STYLE IS EMBATTLED AS THE N. B. A. BEGINS ITS ALL STAR WEEKEND TODAY IN MINNEAPOLIS MR. STERN STANDS UPON A SLIPPERY PINNACLE THE EXTRAVAGANZA SYMBOLIZES EVERYTHING HE HAS ACCOMPLISHED AS SPORT'S TOP CHIEF EXECUTIVE IT IS A SPONSORS' ORGY COMPLETE WITH THE SCHICK ROOKIE GAME A. T. AND T. LONG DISTANCE SHOOTOUT AND GATORADE SLAM DUNK CHAMPIONSHIP THE BIG GAME WILL BE A MAJOR PRIME TIME EVENT FOR N. B. C. AND SIXTEEN FOREIGN NETWORKS BUT OFF THE COURT THE N. B. A. IS UNDER STRESS FROM SUCCESS THE LEAGUE'S OWNERS WILL NO LONGER JUMP THROUGH HOOPS AT MR. STERN'S EVERY COMMAND THE PORTLAND TRAIL BLAZERS DEFIED HIM LAST YEAR TO EXPLOIT A LOOPHOLE IN THE LEAGUE'S SALARY CAP OTHER TEAMS HAVE SINCE STAMPEDED THROUGH IT SIGNING ROOKIES TO MEGA DEALS AND GIVING LONG TERM CONTRACTS TO ESTABLISHED STARS LIKE LARRY JOHNSON WHO IS GETTING EIGHTY FOUR MILLION DOLLARS OVER TWELVE YEARS THE CHICAGO BULLS HAVE ALSO DEFIED MR. STERN REFUSING TO REDUCE THE NUMBER OF THEIR GAMES CARRIED ON SUPERSTATION W. G. N. T. V. AND IGNITING A LONG BITTER LEGAL BATTLE AND THE PLAYERS WHEN NOT JAMMING BASKETBALLS IN MINNEAPOLIS WILL BE HOLDING RESTIVE MEETINGS THEIR UNION BEGINS CONTRACT TALKS IN MARCH AND THEIR NEW NEGOTIATOR CHARLES GRANTHAM WILL PUT FORTH A HUGE DEMAND THE SALARY CAP THE DRAFT THE LEAGUE'S LICENSING AGREEMENT ALL MUST GO THE N. B. A.'S LONG ERA OF GOOD FEELING MAY ALREADY BE GONE QUOTE BASKETBALL HAS BEEN IN ITS GOLDEN AGE OVER THE PAST TEN YEARS QUOTE SAYS DAVID FALK AGENT TO MICHAEL JORDAN PATRICK EWING AND OTHER STARS BUT THE DYNAMICS HAVE CHANGED SUBSTANTIALLY OVER THE PAST TWELVE MONTHS THE MOST OBVIOUS CHANGE IS THE RETIREMENT OF MR. JORDAN THE LEAGUE'S TOP ATTRACTION BUT A BIGGER ISSUE FOR THE N. B. A. IS COPING WITH THE STRAINS FROM ITS NEW RICHES AS IT HAS BECOME A MONEY MAKING MACHINE IT HAS BECOME PRONE TO FRACTIOUS SCUFFLING FOR THE REWARDS THIS MEANS EVER MORE FREQUENT VIOLATIONS OF MR. STERN'S CARDINAL RULE KEEP THE UGLY SIDE OF THE BUSINESS OUT OF THE FANS' SIGHT THAT IS AN UNDER RECOGNIZED REASON FOR THE TURNAROUND OF THE N. B. A. WHICH IN THE EARLY NINETEEN EIGHTIES HAD FIVE TEAMS ON THE VERGE OF BANKRUPTCY AND SEVENTY FIVE PERCENT OF ITS PLAYERS BY SOME REPORTS ON DRUGS DAVID HAD A PHILOSOPHY SAYS RICK WELTS PRESIDENT OF N. B. A. PROPERTIES INCORPORATED THE LEAGUE'S MERCHANDISING ARM IF EVERYTHING WE DID FOCUSED ON WHAT HAPPENS BETWEEN THE FOUR LINES OF THE COURT AND WE COULD KEEP THE INTRAMURAL OWNERSHIP ISSUES OUT OF SIGHT THEN PEOPLE WOULD DISCOVER THIS GREAT GAME MR. STERN GOT STARTED DOWN THAT PATH BY CREATING A PARTNERSHIP BETWEEN PLAYERS AND OWNERS A GUARANTEED FIFTY THREE PERCENT OF TICKET AND T. V. RECEIPTS FOR THE ATHLETES THAT BOUGHT LABOR PEACE PRO BASKETBALL IS THE ONLY MAJOR SPORT NEVER TO HAVE HAD A STRIKE AND STABILIZED LEAGUE FINANCES THEN HE TURNED THE N. B. A.'S FIFTH AVENUE HEADQUARTERS INTO A STAR MAKING FACTORY CREATING NEW DEMAND FOR THE GAME AND DEVELOPING PRODUCTS AND PROGRAMMING TO SATISFY IT THE N. B. A. HATCHED A VIDEOCASSETTE BUSINESS PRODUCED ITS OWN YOUTH ORIENTED T. V. SHOW INSIDE STUFF PUT OUT ITS OWN BASKETBALL CARDS AND MADE ITS TEAMS' ARENAS LIKE THEME PARKS WITH EACH GAME A SLICK SHOW MR. STERN'S STAFF NUMBERING UNDER FIFTY WHEN HE BECAME COMMISSIONER IN NINETEEN EIGHTY FOUR HAS GROWN TO FOUR HUNDRED FIFTY IT DWARFS THAT OF OTHER LEAGUES MAJOR LEAGUE BASEBALL HAS ONE HUNDRED FIFTY BUT THE N. B. A. ISN'T LIKE OTHER LEAGUES ITS APPROACH GREW OUT OF ITS VALLEY FORGE PERIOD WHEN IT HAD TO THROW ITS OWN PEOPLE AT AN OPPORTUNITY OR PROBLEM BECAUSE NOBODY ELSE WOULD BOTHER FOR INSTANCE WHEN THE N. B. A.'S T. V. RATINGS WERE PUNY STAFFERS PITCHED IN TO HELP SELL AD TIME FOR C. B. S. ITS NETWORK THEN THEY BECAME MASTERS AT SELLING T. V. TIME IN CONNECTION WITH NUMEROUS OTHER SPONSORSHIP TIE INS WHICH IS NOW THE N. B. A.'S HALLMARK MCDONALD'S CORPORATION BUYS TIME ON N. B. A. NETWORK GAMES HOSTS THE MCDONALD'S OPEN INTERNATIONAL TOURNAMENT PUTS OUT N. B. A. TRADING CARDS AND IN SOME CITIES NAMES SANDWICHES AFTER N. B. A. STARS MR. STERN CONVINCED MCDONALD'S THAT THE N. B. A. COULD PROJECT THE IMAGE AND REACH THE AUDIENCE THE FAST FOOD CHAIN DESIRED BASKETBALL TOOK AWAY THE ALL AMERICAN APPLE PIE IMAGE FROM BASEBALL SAYS DAVID GREEN A SENIOR MARKETING EXECUTIVE AT MCDONALD'S QUOTE DAVID STERN IS ONE OF THE BEST BRAND MANAGERS THERE IS QUOTE NOTHING DISPLAYS MR. STERN'S ABILITY TO HYPE BOTH HIS PLAYERS AS BEING GOOD GUY SUPERMEN AND HIS LEAGUE AS REACHING A VAST DESIRABLE EIGHTEEN TO THIRTY FOUR YEAR OLD AUDIENCE MORE THAN THE ADVERTISING ON THIS YEAR'S SUPER BOWL BROADCAST FIVE OF THE SEVEN ATHLETES FEATURED IN THE COMMERCIALS WERE PRO BASKETBALL PLAYERS THE PROBLEM FOR MR. STERN NOW IS KEEPING CONTROL OF THE STAR MACHINE HE HAS CREATED THAT TASK IS EVIDENT IN A LONG RUNNING DISPUTE WITH THE CHICAGO BULLS MICHAEL JORDAN'S ASCENDANCE MADE THEIR LOCAL T. V. RIGHTS A HOT PROPERTY BUT THE HOLDER TRIBUNE COMPANY'S W. G. N. IS A CABLE T. V. SUPERSTATION IN NINETEEN NINETY THE N. B. A. ORDERED SUPERSTATION TELECASTS CUT IT DIDN'T WANT MR. JORDAN OVER EXPOSED REDUCING HIS VALUE AS AN ATTRACTION FOR NETWORK GAMES THE BULLS AND W. G. N. HAVE BATTLED THE N. B. A. IN COURT EVER SINCE SO FAR THE TEAM HAS WON EVERY ROUND THE BATTLE HAS COST THE LEAGUE MILLIONS OF DOLLARS IN LEGAL FEES AND A HUGE AMOUNT OF MR. STERN'S ENERGY IN JANUARY ALONE THE LATEST TRIAL CHEWED UP TEN DAYS OF HIS TIME TO SOME IT APPEARS A PERSONAL TEST OF WILLS BETWEEN MR. STERN AND THE CANNY BULLS OWNER JERRY REINSDORF TO THE COMMISSIONER HOWEVER WHAT IS AT STAKE IS THE LEAGUE'S ABILITY TO HOLD REIGN OVER BROADCAST RIGHTS IN THE BRAVE NEW WORLD OF TELEVISION AS HE TOLD ONE OWNER WITH A FUTURE OF FIVE HUNDRED CHANNELS AND GAMES ON DEMAND I HAVE TO BE IN A POSITION TO CONTROL IT NO COMMISSIONER IS MORE T. V. CONSCIOUS THAN MR. STERN HIS LEAGUE IS INVOLVED IN EIGHTY INTERNATIONAL BROADCAST CONTRACTS WHICH TAKE ITS GAMES INTO ONE HUNDRED FORTY ONE COUNTRIES THE GLOBE IS A VAST NEW SOURCE OF T. V. REVENUE AND FROM THAT EXPOSURE ALSO FLOWS A VAST LICENSING BUSINESS N. B. A. LICENSED PRODUCTS WILL GENERATE TWO POINT EIGHT BILLION DOLLARS IN SALES DURING THE NINETEEN NINETY THREE TO NINETY FOUR SEASON THREE HUNDRED MILLION DOLLARS OF IT FROM OVERSEAS FIVE YEARS AGO THE FOREIGN TOTAL WAS ONLY SIXTEEN MILLION DOLLARS IT WAS THE N. B. A.'S NINETEEN NINETY TWO SUMMER OLYMPICS DREAM TEAM THAT MADE THE LEAGUE'S INTERNATIONAL T. V. AND PRODUCT BUSINESS SURGE THIS SUMMER THE LEAGUE WILL FIELD A SEQUEL DREAM TEAM THE SECOND AT THE WORLD CHAMPIONSHIP GAMES IN TORONTO THE TOURNAMENT IS NOMINALLY RUN BY THE INTERNATIONAL BASKETBALL FEDERATION BUT IT IS REALLY A DAVID STERN PRODUCTION THE N. B. A. IS LINING UP SPONSORS RUNNING THE EVENT AND HANDLING T. V. RIGHTS MR. STERN CONTENDS MARC FLEISHER A PLAYER AGENT IS LOOKING TO CONTROL BASKETBALL ON A WORLD WIDE BASIS THE ATTRACTION IS CLEAR AS A GLOBAL BRAND AS N. B. A. PEOPLE SOMETIMES CALL THEIR PRODUCT THE LEAGUE CAN EVEN MORE FIRMLY HITCH ITS WAGON TO GLOBAL CONSUMER GOODS COMPANIES THIS WEEK IT ANNOUNCED A MAJOR INTERNATIONAL SPONSORSHIP DEAL WITH COCA COLA COMPANY BUT THE HAZARDS OF SUCH ALLIANCES HAVE ALSO BECOME CLEAR AS CONFLICTS BEGIN TO CROP UP IN NINETEEN NINETY TWO NIKE INCORPORATED THE BEAVERTON OREGON ATHLETIC FOOTWEAR COMPANY BALKED AT LETTING MICHAEL JORDAN APPEAR AT OLYMPICS MEDAL CEREMONIES IN REEBOK TOGS SHAQUILLE O'NEAL OF THE ORLANDO MAGIC WAS LEFT OFF DREAM TEAM THE SECOND BECAUSE HE WOULDN'T RENOUNCE HIS COMMERCIAL TIES WITH PEPSI DURING THE TOURNAMENT THE N. B. A. WHICH LINED UP COCA COLA AS A SPONSOR INSISTED HE AND OTHER PLAYERS DO SO QUOTE IT'S A NEGATIVE BECAUSE IT REMINDS PEOPLE OF THE OUTRAGEOUS MONEY INVOLVED QUOTE SAYS DAVID BURNS FOUNDER OF BURNS SPORTS CELEBRITY SERVICE CHICAGO WHICH CASTS ATHLETES FOR COMMERCIALS FOR YEARS MR. STERN WAS ABLE TO KEEP OWNERS' SPENDING IN CHECK THROUGH ADROIT HANDLING OF THE SALARY CAP LETTING IT BEND PLENTY BUT NEVER BREAK AND THROUGH SHEER FORCE OF WILL BUT THAT MAY HAVE ENDED LAST SUMMER WHEN THE PORTLAND TRAIL BLAZERS SIGNED A FREE AGENT CENTER NAMED CHRIS DUDLEY THE TEAM'S PAYROLL LIMIT WOULDN'T REALLY ACCOMMODATE THE SEVEN YEAR ELEVEN MILLION DOLLAR CONTRACT OFFERED BUT PORTLAND GAVE MR. DUDLEY AN OPTION TO LEAVE AFTER ONE YEAR AN ARRANGEMENT THAT THE TEAM CLAIMED UNDER THE CAP'S ARCANE RULES MADE HIS SALARY FIT THE N. B. A. DISAGREED AND DISALLOWED THE CONTRACT A FEDERAL COURT OVERRULED THE LEAGUE AND A RAFT OF COPYCAT DEALS SOON DWARFED MR. DUDLEY'S INCLUDING A COMBINED ONE HUNDRED SIXTY THREE MILLION DOLLARS TO THE LEAGUE'S TOP THREE DRAFT PICKS CHRIS WEBBER OF THE GOLDEN STATE WARRIORS SHAWN BRADLEY OF THE PHILADELPHIA SEVENTY SIX ERS AND ANFERNEE HARDAWAY OF THE ORLANDO MAGIC THE OWNERS ARE ENJOYING SO MUCH PROSPERITY THEY'RE BEGINNING TO ASSERT THEIR INDEPENDENCE SAYS MR. FALK THE AGENT YOU'RE SEEING A STRAIN ON THE BINDS THAT HAVE KEPT EVERYBODY IN CHECK THE QUESTION IS CAN DAVID STILL HOLD THEM TOGETHER MR. STERN MUST ALSO TRY TO HOLD ONTO LABOR PEACE THE LEAGUE'S AGREEMENT WITH THE PLAYERS EXPIRES IN JUNE AND MR. GRANTHAM WANTS WHAT IS LEFT OF THE SALARY CAP TO EXPIRE WITH IT IT WAS NEVER VIEWED THAT WE'D HAVE THE CAP FOREVER HE SAYS CONDITIONS REQUIRED IT IN THE EARLY EIGHTIES BUT THEY CERTAINLY DON'T NOW MR. GRANTHAM HAS BEEN GIRDING THE PLAYERS AND THEIR AGENTS FOR BATTLE DISTRIBUTING ECONOMIC DATA IN A PACKET CALLED QUOTE COUNTDOWN TO NINETEEN NINETY FOUR QUOTE IT SAYS THAT THE AVERAGE PLAYER'S SALARY HAS RISEN FIVEFOLD DURING THE CAP ERA TO ONE POINT FOUR MILLION DOLLARS BUT TEAM VALUES HAVE RISEN TENFOLD THE NEXT NEW FRANCHISES WILL COST ONE HUNDRED TWENTY FIVE MILLION DOLLARS IT SAYS THAT TWENTY TWO OF THE TWENTY SEVEN TEAMS WILL BE OVER THE CAP NEXT SEASON SEVERELY LIMITING FREE AGENT MOVEMENT IT ALSO SAYS THAT OF THE TWO POINT EIGHT BILLION DOLLARS IN N. B. A. LICENSED MERCHANDISE TO BE SOLD THIS SEASON PLAYERS WILL COLLECT JUST FIVE HUNDRED THOUSAND DOLLARS IN ROYALTIES SCOFFS MR. STERN IF YOU'RE A UNION WHOSE PLAYERS ARE EARNING TWO MILLION DOLLARS A YEAR AND YOU NEED SOMETHING TO RALLY THEM YOU SAY YOU'RE NOT GETTING ENOUGH T. SHIRT MONEY MR. STERN'S CONTRACT PAYS HIM TWENTY SEVEN POINT FIVE MILLION DOLLARS OVER FIVE YEARS BUT THE PLAYERS HAVE ALREADY BEEN STIRRED BY MR. GRANTHAM'S DISCOVERY IN BULLS W. G. N. COURT DOCUMENTS THAT THE OWNERS HAD UNDERREPORTED REVENUE FOR CAP PURPOSES THAT LED TO A SIXTY TWO MILLION DOLLAR SETTLEMENT IN NINETEEN NINETY TWO THE STATE OF TRUST ISN'T WHAT IT WAS SAYS ISIAH THOMAS THE UNION PRESIDENT AND DETROIT PISTONS GUARD THE PLAYERS HAVE A LEVEL OF DISCOMFORT THEY DIDN'T BEFORE CERTAINLY THE LEVEL OF RAPPORT BETWEEN THE PRINCIPAL NEGOTIATORS HAS DIMINISHED LARRY FLEISHER THE UNION'S CHIEF OF TWENTY FIVE YEARS AND MR. STERN A LEAGUE LAWYER DATING BACK TO THE NINETEEN SIXTIES WERE FAMILIAR ADVERSARIES THEY HAD LEGENDARY SCREAMING MATCHES BUT THEY WORKED OUT THE SALARY CAP AND ALWAYS PRESERVED LABOR PEACE MR. FLEISHER DIED IN NINETEEN EIGHTY NINE YOU HAD TWO CLASSIC NEW YORK GUYS WHO WERE ABLE TO TALK TOUGH BUT AT THE END ALWAYS COME TO AN AGREEMENT SAYS ONE PERSON FAMILIAR WITH THE RELATIONSHIP YOU DON'T HAVE THAT COMMON STARTING POINT WITH CHARLIE GRANTHAM CHARLIE MAY FEEL HE HAS TO DO SOMETHING DRAMATIC TO MAKE HIS MARK QUOTE MR. STERN CLAIMS TO BE SANGUINE ABOUT THIS AND JUST ABOUT ANY OTHER POTENTIAL PERIL ON THE HORIZON ONLY ONE THING CAN HAUNT HIM IN THE DARKEST HOURS OF THE NIGHT HE ALLOWS IN THIS ERA IN WHICH THE N. B. A. SHINES BRIGHTEST THE WORST FEAR I HAVE HE SAYS IS THAT ALL THE PARTIES WHO WERE ESSENTIAL FOR OUR SUCCESS FORGET HOW WE GOT THERE IN THE FIRST PLACE BARNES AND NOBLE INCORPORATED THE NATION'S LARGEST BOOKSELLER SAID FISCAL FOURTH QUARTER REVENUE ROSE NINETEEN PERCENT TO FOUR HUNDRED EIGHTY FOUR MILLION DOLLARS FROM FOUR HUNDRED EIGHT MILLION DOLLARS A YEAR AGO FOR THE FULL YEAR WHICH ENDED JANUARY TWENTY NINTH REVENUE ROSE TWENTY THREE PERCENT TO ONE POINT THREE FOUR BILLION DOLLARS FROM ONE POINT OH NINE BILLION DOLLARS THE NEW YORK BASED COMPANY SAID TIGHT CONTROL ON OPERATING EXPENSES HELPED IT REMAIN ON PLAN DESPITE NEGATIVE EFFECTS OF THE WEATHER AND THE EARTHQUAKE IN JANUARY FOURTH QUARTER REVENUE AT THE COMPANY'S SUPERSTORES ROSE SIXTY SIX PERCENT TO TWO HUNDRED THIRTY MILLION DOLLARS FROM ONE HUNDRED THIRTY NINE MILLION DOLLARS WHILE SAME SUPERSTORE SALES ROSE SEVEN POINT SIX PERCENT IN THE QUARTER SAME SUPERSTORE SALES FOR STORES OPENED BY THE COMPANY EXCLUDING BOOKSTOP AND BOOKSTAR STORES ACQUIRED IN NINETEEN EIGHTY NINE ROSE NINE PERCENT FOR THE FOURTH QUARTER AND ELEVEN POINT FIVE PERCENT FOR THE FULL YEAR SAME STORE SALES FOR THE MALL DIVISION FELL ONE POINT NINE PERCENT FOR THE QUARTER AND WERE VIRTUALLY FLAT FOR THE YEAR BARNES AND NOBLE OPERATES TWO HUNDRED THREE SUPERSTORES UNDER THE BARNES AND NOBLE BOOKSTOP AND BOOKSTAR NAMES THE COMPANY ALSO HAS SEVEN HUNDRED THIRTY FOUR MALL STORES UNDER THE B. DALTON BOOKSELLER DOUBLEDAY BOOK SHOPS AND SCRIBNER'S BOOKSTORE NAMES FAIRCHILD CORPORATION HURTING FROM THE RECESSION IN AIRCRAFT MANUFACTURING MANAGED TO POST A FISCAL SECOND QUARTER PROFIT OF SEVENTY POINT ONE MILLION DOLLARS BECAUSE OF A ONE TIME GAIN FROM THE SALE OF ASSETS FOR THE THREE MONTHS ENDED JANUARY SECOND THE COMPANY EARNED FOUR DOLLARS AND THIRTY FIVE CENTS A SHARE COMPARED WITH A LOSS OF SEVEN POINT NINE MILLION DOLLARS OR FORTY NINE CENTS A SHARE A YEAR EARLIER THE CHANTILLY VIRGINIA COMPANY SAID IT HAD A PRETAX GAIN OF ONE HUNDRED TWENTY NINE POINT ONE MILLION DOLLARS FROM THE SALE OF THE COMPANY'S FORTY THREE POINT NINE PERCENT STAKE IN REXNORD CORPORATION A MILWAUKEE MAKER OF MECHANICAL TRANSMISSION PARTS THE AEROSPACE INDUSTRIAL PRODUCTS AND COMMUNICATIONS SERVICES COMPANY SAID SALES DECLINED NINE POINT SIX PERCENT TO ONE HUNDRED FIVE POINT FOUR MILLION DOLLARS FROM ONE HUNDRED SIXTEEN POINT FIVE MILLION DOLLARS FAIRCHILD SAID ITS PERFORMANCE WAS QUOTE SEVERELY QUOTE AFFECTED BY A DROP IN SALES OF AEROSPACE FASTENERS REFLECTING AN ONGOING DECLINE IN THE AIRCRAFT INDUSTRY FAIRCHILD SHARES FELL TWELVE POINT FIVE CENTS TO FOUR DOLLARS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PRESIDENT CLINTON AND CONGRESSIONAL LEADERS SELECTED A THIRTY TWO MEMBER COMMISSION TO STUDY WAYS TO REDUCE GOVERNMENT SPENDING ON BENEFIT PROGRAMS MR. CLINTON APPOINTED TEN MEMBERS OF THE THIRTY TWO PERSON COMMISSION ON ENTITLEMENT REFORM TO BE HEADED BY DEMOCRATIC SENATOR ROBERT KERREY OF NEBRASKA AND REPUBLICAN SENATOR JOHN DANFORTH OF MISSOURI ENTITLEMENTS ARE PROGRAMS THAT PAY BENEFITS TO ANYONE WHO QUALIFIES THE PANEL'S TOUGHEST ISSUE WILL BE DEALING WITH THE SOCIAL SECURITY SYSTEM WHICH IS EXPENSIVE BUT USUALLY IS CONSIDERED A SACRED COW ADMINISTRATION OFFICIALS HAVE SUGGESTED IT IS UNLIKELY THAT SOCIAL SECURITY WOULD BE CHANGED MUCH THE KERREY COMMISSION AS IT IS KNOWN MAY HAVE SOME FIERY DAYS AHEAD AMONG ITS MEMBERS ARE LIBERALS SUCH AS BOB GREENSTEIN EXECUTIVE DIRECTOR OF THE CENTER ON BUDGET PRIORITIES AND CONSERVATIVES SUCH AS WYOMING REPUBLICAN SENATOR ALAN SIMPSON MR. CLINTON SAID THE COMMISSION WILL QUOTE GRAPPLE WITH REAL ISSUES OF ENTITLEMENT REFORMS NOT CAPS OR GIMMICKS THAT DEFER HARD CHOICES BUT SPECIFIC AND CONSTRUCTIVE PROPOSALS QUOTE THE COMMISSION WILL ISSUE A REPORT TO THE WHITE HOUSE LATER THIS YEAR THE NATION'S STOCKBROKERS EARNED AVERAGE NINETEEN NINETY THREE PAYCHECKS OF A RECORD ONE HUNDRED TWENTY EIGHT THOUSAND DOLLARS UP TEN PERCENT FROM NINETEEN NINETY TWO THANKS TO A SURGE IN TRADING ACTIVITY BY SMALL INVESTORS BUT NOT ALL BROKERS ARE HAPPY SOME WILL GET A SMALLER SLICE OF COMMISSIONS THAN BEFORE AS SOME FIRMS CUT PAYOUTS UNLIKE SALARIES IN MOST OF CORPORATE AMERICA THE COMPENSATION OF MANY BROKERS IS TIED DIRECTLY TO THE TRADING COMMISSIONS THEY GENERATE BROKERS GET TO KEEP A PORTION OF SUCH COMMISSIONS TYPICALLY TWENTY FIVE PERCENT TO FORTY FIVE PERCENT DEPENDING ON THE OVERALL VOLUME OF BUSINESS THEY GENERATE AND THE TYPES OF PRODUCTS THEY SELL CONSIDER THE SITUATION OF SOME TOP BROKERS AT PAINEWEBBER GROUP INCORPORATED THOSE WHO GENERATED NINETEEN NINETY THREE COMMISSIONS OF SAY FOUR HUNDRED FIFTY THOUSAND DOLLARS GOT TO KEEP FORTY TWO PERCENT OF THAT AMOUNT OR ABOUT ONE HUNDRED EIGHTY NINE THOUSAND DOLLARS BUT THIS YEAR PAINEWEBBER IS TRIMMING THE BIG BROKERS' COMMISSIONS TO FORTY PERCENT PAINEWEBBBER SAYS THE SMALL CUT IN COMPENSATION FOR SOME BROKERS STEMS FROM A NEW COMPENSATION PLAN THAT FUNNELS THE SAME SALES COMMISSION TO BROKERS NO MATTER WHETHER THEY SELL INTERNAL OR QUOTE PROPRIETARY QUOTE INVESTMENTS OR OUTSIDE PRODUCTS PREVIOUSLY PAINEWEBBER HAD PAID SLIGHTLY MORE FOR PROPRIETARY PRODUCTS THAN FOR EXTERNAL INVESTMENTS MY BROKERS ON AVERAGE TOOK A MAXIMUM TWO PERCENTAGE POINT CUT IN PAY BECAUSE OF THE NEW COMPENSATION SYSTEM SAYS JOSEPH GRANO PAINEWEBBER'S BROKERAGE CHIEF NO ONE LIKES TO SEE A CUT IN PAY MR. GRANO ADDS BUT BROKERS ARE VERY FAIRLY COMPENSATED THE OVERALL SURGE IN BROKERS' PAYCHECKS COMES AS THE SECURITIES AND EXCHANGE COMMISSION INTENSIFIES ITS PRESSURE ON SECURITIES FIRMS TO CHANGE BROKERS' COMPENSATION SAYING THAT THE CURRENT SYSTEM OF COMMISSIONS PRODS SOME BROKERS TO CHEAT CUSTOMERS THE S. E. C. IS CONCERNED THAT PAYING BROKERS BASED ON HOW MUCH IN COMMISSIONS THEY DRUM UP ENCOURAGES THEM TO SELL MORE AND MORE WITHOUT REGARD TO HOW SUITABLE THE TRADES ARE TO CLIENT NEEDS RECENTLY SOME BROKERAGE FIRMS HAVE MOVED MORE TOWARD PAYING BROKERS FOR THE CLIENT MONEY THEY BRING IN TO THE FIRM AND HOW WELL CLIENTS DO AND LESS ON THE AMOUNT OF TRADES THEY GENERATE THIS OFTEN IS DONE BY ARRANGING WRAP ACCOUNTS DIRECTING CLIENTS' MONEY FOR AN ANNUAL FEE TO A HANDFUL OF PROFESSIONAL PORTFOLIO MANAGERS THE UPSHOT BROKERS EARN MORE IF THEIR CLIENTS DO TOO AND THEY LOSE IF SUCH ACCOUNTS DON'T FARE WELL JOHNNY PRIBYL A PAINEWEBBER BROKER IN OKLAHOMA CITY GENERATED HALF HIS BUSINESS LAST YEAR FROM WRAP ACCOUNTS UP FROM THIRTY PERCENT SEVERAL YEARS AGO ALL WE HAVE TO DO TO MAKE MORE MONEY IS MAKE THE CLIENTS' ACCOUNTS GROW MR. PRIBYL SAYS WHAT HAS FUELED THE RECENT BOOM IN BROKER COMPENSATION IS FRENZIED TRADING ACTIVITY BY SMALL INVESTORS PARTICULARLY THROUGH MUTUAL FUNDS NET SALES OF STOCK MUTUAL FUNDS TOTALED A RECORD ONE HUNDRED THIRTY FOUR POINT NINE FIVE BILLION DOLLARS IN NINETEEN NINETY THREE A SIXTY SEVEN PERCENT JUMP FROM EIGHTY POINT SEVEN THREE BILLION DOLLARS IN NINETEEN NINETY TWO THE PRIOR RECORD ACCORDING TO THE INVESTMENT COMPANY INSTITUTE A TRADE GROUP THE NATION'S NINETY ONE THOUSAND BROKERS WILL BE IN EVEN MORE DEMAND DURING THE NEXT FEW YEARS SOME ANALYSTS SAY THIS IS PARTLY BECAUSE EMPLOYEES INCREASINGLY ARE BEING REQUIRED TO MAKE THEIR OWN INVESTMENT DECISIONS REGARDING THEIR RETIREMENT PORTFOLIOS IN THE PAST MANY EMPLOYERS FILLED THAT ROLE AS MORE PEOPLE ARE IN CHARGE OF THEIR RETIREMENT FUNDS THEY WILL NEED FINANCIAL ADVICE MORE THAN EVER SAYS JEFFREY SCHAEFER RESEARCH DIRECTOR AT THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP MEANWHILE BROKERS' NINETEEN NINETY THREE MEDIAN COMPENSATION THE LEVEL THAT SEPARATES THE TOP AND BOTTOM HALVES OF BROKERS' PRODUCTION WAS A RECORD EIGHTY SIX THOUSAND FIFTY DOLLARS ACCORDING TO WALL STREET EXECUTIVES THAT'S TEN PERCENT HIGHER THAN NINETEEN NINETY TWO'S MEDIAN FIGURE OF SEVENTY EIGHT THOUSAND TWO HUNDRED TWENTY SEVEN DOLLARS BUT THIRTY THREE PERCENT BELOW NINETEEN NINETY THREE'S AVERAGE COMPENSATION THE GAP IS PARTLY DUE TO A MINORITY OF SUPERSTAR BROKERS WHO EACH GENERATED COMMISSIONS OF ONE MILLION DOLLARS OR MORE THESE HEAVY HITTERS BOOSTED AVERAGE PAY LEVELS QUOTE THE MILLION DOLLAR PRODUCERS AREN'T AS RARE AS THEY USED TO BE QUOTE SAYS DAN JAMIESON EDITOR OF REGISTERED REPRESENTATIVE MAGAZINE A TRADE JOURNAL BUT THE AVERAGE BROKER IN THE AVERAGE OFFICE OFTEN MAKES FIFTY THOUSAND DOLLARS SIXTY THOUSAND DOLLARS SEVENTY THOUSAND DOLLARS THEY'RE NOT BRINGING HOME HALF A MILLION BUCKS HE SAYS PENN CENTRAL CORPORATION SAID IT IS MULLING A PROPOSAL TO ACQUIRE THE PERSONAL LINES INSURANCE OPERATIONS OF A UNIT OF AMERICAN FINANCIAL CORPORATION FOR ABOUT THREE HUNDRED EIGHTY MILLION DOLLARS THE PERSONAL LINES BUSINESS OF THE GREAT AMERICAN INSURANCE COMPANY UNIT REPORTED NET EARNED PREMIUMS OF THREE HUNDRED FORTY TWO MILLION DOLLARS IN NINETEEN NINETY THREE ABOUT SEVENTY PERCENT OF THESE PREMIUMS CAME FROM STANDARD PRIVATE PASSENGER AUTOMOBILE INSURANCE PENN SAID AMERICAN'S SALE PROPOSAL WOULD INCLUDE THE TRANSFER BY THE UNIT OF AN INVESTMENT PORTFOLIO OF SECURITIES WITH A CURRENT MARKET VALUE OF ABOUT FOUR HUNDRED FIFTY MILLION DOLLARS PENN WHICH IS MAINLY INVOLVED IN SPECIALTY PROPERTY AND CASUALTY INSURANCE SAID ITS DIRECTORS HAD CONCLUDED THAT THE PROPOSED ACQUISITION QUOTE MERITS SERIOUS CONSIDERATION QUOTE THEY NAMED A SPECIAL COMMITTEE OF OUTSIDE DIRECTORS TO REVIEW THE PROPOSAL AMERICAN FINANCIAL OWNS FORTY POINT FIVE PERCENT OF PENN CENTRAL'S SHARES AND AMERICAN'S MAIN SHAREHOLDER CARL H. LINDNER IS PENN CENTRAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MEDRAD INCORPORATED PITTSBURGH SAID EARNINGS FOR THE FISCAL FOURTH QUARTER ENDED JANUARY THIRTY FIRST WILL INCLUDE AN ASSET WRITE DOWN OF ABOUT ONE POINT SIX MILLION DOLLARS RELATED TO INVENTORY OF THE COMPANY'S IMAGE ENHANCEMENT LINE MEDRAD WHICH MAKES PRODUCTS THAT IMPROVE THE CLARITY OF MEDICAL IMAGES OF THE HUMAN BODY SAID RESULTS FOR THE FISCAL NINETEEN NINETY FOUR FOURTH QUARTER AND YEAR WILL QUOTE REFLECT SLOWING GROWTH DUE TO MARKET UNCERTAINTIES AND HEIGHTENED PRICING PRESSURES AFFECTING THE HEALTH CARE INDUSTRY QUOTE THE COMPANY REPORTED PROFIT OF TWO POINT FIVE MILLION DOLLARS OR THIRTY NINE CENTS A SHARE FOR THE YEAR AGO FOURTH QUARTER THE COMPANY EXPECTS FISCAL FOURTH QUARTER REVENUE IN NINETEEN NINETY FOUR TO FALL THREE PERCENT TO ABOUT TWENTY POINT SIX MILLION DOLLARS FROM TWENTY ONE POINT THREE MILLION DOLLARS REFLECTING REDUCED EQUIPMENT SALES FOR THE YEAR IT EXPECTS PROFIT TO BE SLIGHTLY AHEAD OF NINETEEN NINETY THREE RESULTS AND REVENUE TO BE ABOUT SEVENTY ONE POINT SEVEN MILLION DOLLARS UP FROM SIXTY SEVEN POINT FOUR MILLION DOLLARS IN NINETEEN NINETY THREE REBUILD L. A. THE PRIVATE GROUP FORMED TO REVITALIZE BLIGHTED AREAS AFTER THIS CITY'S NINETEEN NINETY TWO RIOTS HAS SELECTED ATLANTIC RICHFIELD COMPANY CHAIRMAN LODWRICK M. COOK AS ITS CHAIRMAN THE NAMING OF MR. COOK CAME AS A SURPRISE TO MANY ARCO INSIDERS BUT THE OIL COMPANY SAID THE SIXTY FIVE YEAR OLD EXECUTIVE HAS MADE IT CLEAR HE DOESN'T EXPECT THE NEW JOB TO INTERFERE WITH HIS CORPORATE RESPONSIBILITIES QUOTE HE IS GOING TO GIVE THE COMPANY ALL THE ATTENTION IT REQUIRES QUOTE ARCO SPOKESMAN AL GREENSTEIN SAID LINDA GRIEGO A BUSINESSWOMAN WHO WAS AN UNSUCCESSFUL MAYORAL CANDIDATE LAST YEAR WAS NAMED EXECUTIVE DIRECTOR OF REBUILD L. A. ACCORDING TO A SPOKESWOMAN FOR THE ORGANIZATION IN THAT ROLE MS. GRIEGO WILL BE RESPONSIBLE FOR THE DAY TO DAY OPERATIONS OF THE ORGANIZATION THE REVAMPED RLA STRUCTURE WITH AN UNPAID CHAIRMAN OFFERING THE WEIGHT OF HIS REPUTATION AND LEADERSHIP ALONG WITH A PAID CHIEF EXECUTIVE HANDLING DAILY AFFAIRS REPLACES THE PREVIOUSLY UNWIELDY SYSTEM OF FOUR CO CHAIRS THE CHAIRMAN'S JOB HAD BEEN HELD BY PETER UEBERROTH THE FORMER BASEBALL COMMISSIONER AND HEAD OF THE COMMITTEE THAT ORGANIZED THE NINETEEN EIGHTY FOUR SUMMER OLYMPIC GAMES HERE WHEN MR. UEBERROTH STEPPED DOWN LAST MAY WITHOUT A SINGLE HIGH PROFILE SUCCESSOR MANY CONSIDERED THE ORGANIZATION TO HAVE BEEN A FAILURE THE ARCO SPOKESMAN SAID THAT MR. COOK PREVIOUSLY HAD SAID HE WOULDN'T TAKE THE RLA JOB WITHOUT A FULL TIME EXECUTIVE TO MANAGE THE ORGANIZATION'S AFFAIRS MS. GRIEGO FORTY SIX WAS MR. COOK'S HAND PICKED CHOICE PEOPLE AT RLA SAID WE HAVE SELECTED FOR THE BOARD A TERRIFIC TEAM TO HEAD THE INNER CITY EFFORT SAID BARRY SANDERS A FORMER RLA CO CHAIRMAN AND A MEMBER OF THE THIRTEEN MEMBER SELECTION COMMITTEE HE SAID HE WAS CONFIDENT THE TWO WOULD BE CONFIRMED BY RLA'S NINETY SIX MEMBER BOARD AT A MEETING NEXT TUESDAY WHILE GUIDING ATLANTIC RICHFIELD THROUGH A RESTRUCTURING AND MAJOR PERSONNEL REDUCTIONS OVER THE YEARS MR. COOK HAS ALSO PLAYED AN ACTIVE ROLE IN CIVIC AND PHILANTHROPIC ORGANIZATIONS IN SOUTHERN CALIFORNIA FOR EXAMPLE HE IS CHAIRMAN OF A GROUP RAISING MONEY FOR THE LOS ANGELES PUBLIC LIBRARY SYSTEM BEFORE THE ANNOUNCEMENT MR. COOK HAD SAID HE PLANNED TO RETIRE FROM ARCO IN THE SUMMER OF NINETEEN NINETY FIVE HE BECAME SIXTY FIVE LAST YEAR BUT THE COMPANY'S BOARD ASKED HIM TO STAY ON AS CHAIRMAN PAST THE MANDATORY RETIREMENT AGE UNTIL JUNE NINETEEN NINETY FIVE IN A SPEECH IN HOUSTON THIS WEEK PRESIDENT CLINTON SAID HE WANTS TO SPEND MORE MONEY ON LOCAL POLICE MORE ON PRISONS MORE TO DEVELOP COMMERCIAL APPLICATIONS FOR MILITARY TECHNOLOGY MORE TO TRAIN LAID OFF WORKERS MORE FOR APPRENTICESHIPS MORE FOR THE HOMELESS MORE FOR HEAD START MR. CLINTON CLEARLY HASN'T LOST HIS APPETITE FOR SPENDING MORE BUT THE HARD NUMBERS IN THE NEW FEDERAL BUDGET SHOW HOW MUCH TROUBLE HE IS HAVING THE SPENDING RESTRAINTS BUILT INTO THE NINETEEN NINETY AND NINETEEN NINETY THREE DEFICIT REDUCTION LAWS DESPITE THEIR FLAWS ARE SHACKLING HIM AND THE COMBINED BIPARTISAN POLITICAL POWER OF CONGRESSIONAL DEFICIT FIGHTERS ANTISPENDING CONSERVATIVES AND PROPONENTS OF BALANCING THE BUDGET PREVENT HIM FROM CHEATING TOO MUCH OR TRYING TO CHANGE THE LAW QUOTE MOST PEOPLE THINK THE BUDGET IS A MYSTERY QUOTE MR. CLINTON SAID IN HOUSTON THIS WEEK THE PRESIDENT PROPOSES TO SPEND ONE POINT FIVE TRILLION DOLLARS IN THE FISCAL YEAR THAT ENDS SEPTEMBER THIRTIETH NINETEEN NINETY FIVE ABOUT HALF WILL GO FOR VARIOUS GOVERNMENT BENEFITS FROM SOCIAL SECURITY AND MEDICARE TO BUREAUCRATS' PENSIONS MORE ON THAT LATER ANOTHER FIFTEEN PERCENT WILL GO FOR INTEREST THE REMAINING THIRTY FIVE PERCENT THE PART OF THE BUDGET THAT GETS THE MOST ATTENTION WILL GO FOR ANNUALLY APPROPRIATED SPENDING ON EVERYTHING FROM PAPER CLIPS FOR THE PENTAGON TO ASTRONAUTS' SALARIES THIS DISCRETIONARY SPENDING AS IT'S KNOWN HAS STOPPED CLIMBING BECAUSE PRESIDENT BUSH AND CONGRESS SET CAPS ON IT BACK IN NINETEEN NINETY AND MR. CLINTON AGREED TO CONTINUE THEM LAST YEAR THE CAPS FOR THE MOST PART HAVE HELD BETTER THAN MANY IN WASHINGTON EXPECTED THE END OF THE COLD WAR OF COURSE ALLOWED BOTH MR. BUSH AND MR. CLINTON TO DIVERT MONEY FROM THE DEFENSE BUDGET TO DOMESTIC PROGRAMS BUT MR. CLINTON HIS CRITICS NOTWITHSTANDING HASN'T MANAGED TO CAPTURE NEARLY AS MUCH OF THIS PEACE DIVIDEND AS RICHARD NIXON AND JIMMY CARTER DID FOR EVERY DOLLAR THAT DEFENSE WAS CUT AS THE VIETNAM WAR WOUND DOWN IN THE NINETEEN SEVENTIES DOMESTIC DISCRETIONARY SPENDING ROSE BY SIXTY EIGHT CENTS AFTER ADJUSTING FOR INFLATION FOR EVERY DOLLAR THAT DEFENSE IS BEING CUT IN THE NINETEEN NINETIES DOMESTIC SPENDING IS PROJECTED TO CLIMB BY TWENTY THREE CENTS AND NEARLY ALL OF THAT INCREASE OCCURRED ON MR. BUSH'S WATCH OVER THE NEXT FIVE YEARS MR. CLINTON PROPOSES TO INCREASE WHAT'S KNOWN AS BUDGET AUTHORITY THE MONEY THAT GOES INTO AGENCY CHECKBOOKS FOR DOMESTIC PROGRAMS BY THIRTY THREE BILLION DOLLARS OR FIFTEEN PERCENT BUT OUTLAYS THE CHECKS THAT AGENCIES WRITE FROM BUDGET AUTHORITY GRANTED IN THE PAST WOULD RISE BY TWENTY TWO POINT FIVE BILLION DOLLARS OR EIGHT POINT SEVEN PERCENT THERE'S NOTHING SINISTER ABOUT THE DISCREPANCY NEARLY ALL OF IT REFLECTS THE WAY THE GOVERNMENT ACCOUNTS FOR HOUSING SUBSIDIES A SLEW OF CONTRACTS WITH LANDLORDS AND HOUSING AUTHORITIES EXPIRES IN FISCAL NINETEEN NINETY SIX WHEN THE GOVERNMENT RENEWS THEM FOR FIVE OR FIFTEEN YEARS DEPENDING ON THE TYPE IT BOOSTS BUDGET AUTHORITY IN THAT ONE YEAR THE OUTLAYS ARE SPREAD OUT OVER YEARS MR. CLINTON IS PROPOSING TO INCREASE THE NUMBER OF SUBSIDIZED UNITS BY ABOUT TWO PERCENT OVER FIVE YEARS BUT MOST OF THE INCREASE REFLECTS THE ACCOUNTING RULE SOME BUDGET ANALYSTS ARE EVEN BEGINNING TO WONDER IF THIS IS ASKING TOO MUCH BOTH ON THE DEFENSE AND DOMESTIC SIDE LOOK AT ALL OF THE POLITICAL AND TERRITORIAL DISPUTES SAYS UNIVERSITY OF MARYLAND BUDGET SCHOLAR ALLEN SCHICK IT'S HARD TO BELIEVE THAT SOMETHING REALLY BAD WON'T HAPPEN AND WITH IT A DECISION TO SPEND MORE ON DEFENSE AND THEN THERE'S MR. CLINTON'S AMBITIOUS PLAN TO INCREASE WHAT HE LIKES TO CALL INVESTMENTS HE WANTS TO SHIFT RESOURCES TOWARD THE INVESTMENTS EDUCATION PHYSICAL CAPITAL R. AND D. AND THAT'S ALL IN THE DISCRETIONARY CATEGORY SAYS ECONOMIST BARRY BOSWORTH OF THE BROOKINGS INSTITUTION YET THAT IS WHERE HE AGREED TO THE CAP ON SPENDING I KIND OF WONDER IF HE WILL LIVE WITH THAT FOR HIS FULL TERM QUOTE MR. CLINTON OF COURSE TRIED TO EVADE THE SPENDING CAPS LAST YEAR WITH HIS ECONOMIC STIMULUS PACKAGE BUT CONGRESS REFUSED THERE IS SOME SEEPAGE THIS YEAR DESPITE THE EFFORTS OF SOME REPUBLICANS CONGRESS IS TREATING THE CALIFORNIA EARTHQUAKE AS AN EMERGENCY WHICH MEANS IT DOESN'T HAVE TO CUT SOMEWHERE ELSE TO MAKE ROOM FOR EARTHQUAKE AID UNDER THE CAPS THE SENATE YESTERDAY APPROVED TEN POINT ONE BILLION DOLLARS IN SPENDING FOR QUAKE AID PEACEKEEPING COSTS AND OTHER EMERGENCY SPENDING AND VOTED TO OFFSET ONLY THREE POINT FOUR BILLION DOLLARS OF THAT BY RESCINDING PAST APPROPRIATIONS FOR NEXT YEAR MR. CLINTON PROJECTS THAT OUTLAYS FOR DOMESTIC AND DEFENSE DISCRETIONARY SPENDING WILL COME IN JUST UNDER THE CAP AND ACTUALLY FALL BY SEVEN POINT SEVEN BILLION DOLLARS WITHOUT MAKING AN ADJUSTMENT FOR INFLATION THAT HASN'T HAPPENED SINCE NINETEEN SIXTY NINE DOMESTIC OUTLAYS ARE TO RISE BY TWO POINT EIGHT BILLION DOLLARS DEFENSE AND FOREIGN AID TO FALL BY TEN POINT FIVE BILLION DOLLARS DOMESTIC DISCRETIONARY SPENDING IS GOING UP DEFENSE THEY ARE CUTTING IN A MANNER INCONSISTENT WITH A WORLD WIDE FORCE COMPLAINS REPRESENTATIVE CHRISTOPHER COX R. CALIFORNIA OTHER REPUBLICANS CHARGE THAT MR. CLINTON CHEATED AROUND THE EDGES PARTLY BY PROPOSING ONE POINT FOUR BILLION DOLLARS IN HIGHER FEES FOR NATIONAL PARKS BANKRUPTCY FILINGS MEAT INSPECTIONS AND THE LIKE WHAT IF THE SPENDING EXCEEDS THE CAP WELL IT PROBABLY WILL IN NINETEEN NINETY FIVE BECAUSE IT'S THE RESULT OF A FORMALLY DECLARED EMERGENCY THE EARTHQUAKE THERE'S NO PROBLEM UNDER THE BUDGET RULES IF IT HAPPENS FOR ANY OTHER REASON THEN THE LAW TRIGGERS AUTOMATIC SPENDING CUTS TO MAKE SURE THE CAPS WORK BUT THE BIG PROBLEM ISN'T DISCRETIONARY SPENDING FOCUSING ON THIS SECTOR OF THE FEDERAL BUDGET WHILE IMPORTANT WILL DISTRACT FROM THE LARGER FIFTY PERCENT OF THE BUDGET THAT GOES FOR ENTITLEMENT PROGRAMS THE REPUBLICAN STAFF OF THE SENATE BUDGET COMMITTEE SAYS IN ITS ANALYSIS OF THE CLINTON BUDGET AND IT IS IN THIS SECTOR THAT THE ADMINISTRATION LACKS COURAGE OVER THE NEXT FIVE YEARS EVEN ASSUMING THAT MR. CLINTON'S HEALTH PLAN PASSES AND WORKS AS HE PREDICTS SPENDING ON FEDERAL BUDGET PROGRAMS WILL CLIMB BY THREE HUNDRED TWENTY FIVE BILLION DOLLARS OR TWENTY NINE PERCENT TO ONE POINT ONE TRILLION DOLLARS IN FISCAL NINETEEN NINETY NINE A TWENTY NINE PERCENT INCREASE OUTLAYS FOR MEDICARE ALONE ARE PROJECTED TO RISE BY SEVENTY FOUR BILLION DOLLARS OR FIFTY THREE PERCENT QUOTE WHAT HAPPENED IN THE SEVENTIES QUOTE SAYS STANFORD UNIVERSITY ECONOMIST JOHN COGAN A REAGAN ADMINISTRATION BUDGET OFFICIAL QUOTE WAS THAT WE RESTRAINED DISCRETIONARY APPROPRIATIONS PRETTY WELL BUT WE BALLOONED ENTITLEMENTS FOOD STAMPS SUPPLEMENTAL SECURITY INCOME MEDICAID MEDICARE QUOTE IN THE NINETEEN NINETIES HE SAYS WE SEE RESTRAINT ON THE DISCRETIONARY SIDE OF THE BUDGET BECAUSE OF THE CAPS BUT WE ALSO SEE WHAT APPEAR TO BE PROPOSALS FOR NEW ENTITLEMENTS AND THAT'S IN HEALTH CARE WHERE MR. CLINTON IS PROPOSING TO GUARANTEE A GENEROUS HEALTH INSURANCE PACKAGE TO EVERY AMERICAN FAMILY EVEN IF THE GOVERNMENT HAS TO PAY FOR IT STUNG BY EUROPEAN PARLIAMENT ACCUSATIONS OF FOOT DRAGGING THE EUROPEAN UNION'S SINGLE MARKET COMMISSIONER VOWED TO PUSH E. U. GOVERNMENTS INTO ABOLISHING BORDER CHECKS OF INDIVIDUALS PASSPORT CHECKS HAVE MULTIPLIED SINCE BARRIERS SUPPOSEDLY WERE DROPPED A YEAR AGO THE E. U. COMMISSION WILL PRESENT MEMBERS WITH MEASURES SETTING CONDITIONS FOR PEOPLE'S FREE MOVEMENT PASSAGE IS IFFY AS MOST OF THE PROPOSALS NEED E. U. GOVERNMENTS' UNANIMOUS APPROVAL THE MOST CONTROVERSIAL MEASURE WOULD ALLOW FREE TRAVEL THROUGHOUT THE TWELVE NATION BLOC BY NON E. U. CITIZENS AFTER LEGAL ENTRY BRITAIN WHICH OPPOSES ABOLITION OF BORDER CHECKS ARGUES THAT GUARANTEES OF PEOPLE'S FREE MOVEMENT DON'T APPLY TO NATIONALS OF NON E. U. COUNTRIES AND CONTENDS PASSPORT CHECKS ARE THUS NEEDED PROBLEMS WITH A CENTRAL COMPUTER SYSTEM DELAYED THE FEBRUARY FIRST LIFTING OF PASSPORT CONTROLS BY ALL E. U. COUNTRIES EXCEPT BRITAIN DENMARK AND IRELAND THAT PACT COULD BE IMPLEMENTED BY THE END OF JUNE A PHILIPPINE COMMITTEE IDENTIFIED WAYS TO MAKE UP FOR REVENUES THAT WOULD BE LOST BY SCRAPPING A DEFICIT FIGHTING INCREASE IN THE OIL PRODUCTS LEVY SUSPENDED FOLLOWING WIDESPREAD PROTESTS AMONG SUBSTITUTE MEASURES THAT COULD BE IMPOSED BY EXECUTIVE ORDER ARE INCREASED MOTOR VEHICLE REGISTRATION FEES AN AIRPORT TERMINAL FEE AND A FIVE PERCENT CUT IN GOVERNMENT MAINTENANCE AND OPERATING EXPENSES OTHER REVENUE RAISING MEASURES WHICH NEED CONGRESSIONAL APPROVAL INCLUDE BROADENING THE VALUE ADDED TAX AND REDUCING THE TAX EXEMPTION FOR MARRIED COUPLES FRENCH AUTO MAKERS AND INSURERS AGREED ON A PLAN TO REDUCE CAR THEFTS AND CLAIMS FOR THEM PRODUCERS WILL INSTALL ANTITHEFT DEVICES IN MOST OF THEIR HIGH END MODELS ADDING ABOUT ONE HUNDRED SIXTY FIVE DOLLARS TO A CAR'S PRICE IF THIS RESULTS IN FEWER CLAIMS INSURERS WILL REDUCE POLICY PREMIUMS PROPORTIONATELY IN NINETEEN NINETY TWO THE LATEST DATA AVAILABLE THREE HUNDRED TWELVE THOUSAND VEHICLES WERE STOLEN IN FRANCE ONLY ONE THIRD OF WHICH WERE RECOVERED AND INSURERS PAID ONE POINT FOUR TWO BILLION DOLLARS ON EIGHT HUNDRED FIFTY THOUSAND CLAIMS TOTALING TWO POINT TWO SIX BILLION DOLLARS FOR STOLEN CARS OR ACCESSORIES CLAIMS HAVE DOUBLED SINCE NINETEEN NINETY STEEP INSURANCE PREMIUMS FOR AUTOS FAVORED BY THIEVES HAVE DISCOURAGED CAR PURCHASES HURTING THE ECONOMY AFTER COMMUNICATIONS WORKERS IN RUSSIA BLOCKED TRANSMISSION OF RADIO AND TELEVISION PROGRAMS TO MUCH OF THE VAST COUNTRY THE GOVERNMENT AGREED TO DEMANDS BY THE NINE HUNDRED FIFTY THOUSAND MEMBER UNION TO MAKE GOOD ON MONTHS OF UNPAID WAGES TECHNICIANS' BRIEF STRIKE SILENCED FORTY PERCENT OF STATE RADIO'S REACH AND BLACKED OUT FAVORITE SHOWS ON THE TWO NATIONWIDE T. V. NETWORKS THE GOVERNMENT PROMISED TO PAY FORTY THREE MILLION DOLLARS IT OWES TO BROADCASTING COMPANIES IT BLAMED A PAYMENT CRISIS AFFECTING MILLIONS OF STATE WORKERS IN SECTORS RANGING FROM MINING TO STEEL ON INSUFFICIENT REVENUE AND A RELUCTANCE TO PRINT MORE MONEY TO AVOID FUELING INFLATION TURKEY PLANS TO ACCELERATE SELL OFFS OF STATE ENTERPRISES PREDICTING PROCEEDS OF TWENTY POINT SIX NINE BILLION DOLLARS AND SAVINGS OF SEVEN POINT THREE THREE BILLION DOLLARS IN OUTLAYS FOR THE FIRMS BY THE END OF NINETEEN NINETY FIVE SINCE THE PRIVATIZATION PROGRAM BEGAN IN NINETEEN EIGHTY FOUR ONLY ONE POINT SEVEN BILLION DOLLARS OF ENTERPRISES OR SHARES HAVE BEEN TURNED OVER TO THE PRIVATE SECTOR WITH NET GOVERNMENT PROCEEDS TOTALING NINE HUNDRED MILLION DOLLARS IN REDIRECTING ITS FOCUS FROM MISMANAGED FIRMS THE AGENCY HAS MARKETED STOCK IN MORE ROBUST OPERATIONS TO HELP FINANCE ROADS DAMS AND WATER PROJECTS BUT AGENCY FINANCING AIDED BY TAXES AND DUTIES HAS BEEN DIVERTED OR USED TO PLUG GOVERNMENT DEFICITS AND THE PROGRAM HAS RUN UP SEVEN POINT EIGHT BILLION DOLLARS OF DEBT ISRAEL'S CENTRAL BANK WILL LIBERALIZE FOREIGN EXCHANGE TRANSACTIONS IN A FEW MONTHS ALLOWING BANKS TO SET THEIR OWN CONSTANTLY FLOATING RATES FOR CURRENCIES AGAINST THE SHEKEL AND COMPETE FOR CUSTOMERS NOW THE BANK OF ISRAEL SETS EXCHANGE RATES ONCE A DAY WITH COMMERCIAL BANKS SERVING ONLY AS ORDER CONDUITS THE NEW SYSTEM COMMON IN DEVELOPED ECONOMIES IS PART OF REFORMS TO REDUCE THE CENTRAL BANK'S ROLE IN CURRENCY TRADING AND MAKE THE SHEKEL FULLY CONVERTIBLE THE SALE OF A CONFECTIONER POIANA PRODUSE ZAHAROASE S. A. MARKED THE START OF BIG INDUSTRIAL PRIVATIZATIONS IN ROMANIA KRAFT JACOBS SUCHARD THE SWISS UNIT OF PHILIP MORRIS COMPANIES OF THE U. S. ACQUIRED EIGHTY TWO PERCENT OF POIANA FOR FOUR POINT FOUR MILLION DOLLARS AND PLANS TO INVEST SEVENTEEN MILLION DOLLARS OVER FIVE YEARS TO MODERNIZE THE COMPANY AND INCREASE ITS PRODUCTION CAPACITY THE REMAINING EIGHTEEN PERCENT WILL BE OFFERED TO POIANA EMPLOYEES SINCE ROMANIA'S AUTHORITARIAN REGIME COLLAPSED IN DECEMBER NINETEEN EIGHTY NINE ONLY SMALL COMPANIES MOSTLY RESTAURANTS AND HOTELS HAVE BEEN PRIVATIZED CORRUPTION CHARGES HALTED A SELL OFF OF PETROMIN THE STATE'S BIG SHIPPING CONCERN PRESSURED BY INTERNATIONAL LENDING ORGANIZATIONS THE GOVERNMENT HAS VOWED TO COMPLETE TWO THOUSAND PRIVATIZATIONS THIS YEAR OR ALMOST FIVE TIMES THE TOTAL SINCE ROMANIA BEGAN PURSUING A MARKET ECONOMY AN ATHENS PROSECUTOR FILED FELONY CHARGES AGAINST A GRAPHIC DESIGN FIRM THAT RAISED MONEY TO PAY ITS DEBTS BY ALLEGEDLY PRINTING FORGED BONDS OF GREECE'S NATIONAL MORTGAGE BANK SPAIN SAID GROSS INCOME FROM TOURISM LAST YEAR ROSE TWELVE PERCENT TO SEVENTEEN POINT EIGHT TWO BILLION DOLLARS FROM A YEAR EARLIER LAIDLAW INCORPORATED SAID IT BOUGHT FOUR AMBULANCE COMPANIES ACCELERATING THE COMPANY'S PUSH INTO THE U. S. HEALTH CARE TRANSPORTATION BUSINESS TERMS OF THE TRANSACTIONS WEREN'T DISCLOSED LAIDLAW SAID THE FOUR COMPANIES WITH COMBINED REVENUE OF FORTY FIVE MILLION DOLLARS A YEAR HAVE OPERATIONS IN AND AROUND GRAND RAPIDS MICHIGAN DALLAS DENVER AND GLENDALE CALIFORNIA LAIDLAW IN BURLINGTON ONTARIO FACING A PROFIT MARGIN SQUEEZE IN ITS BIG SOLID AND HAZARDOUS WASTE OPERATIONS FIRST MOVED INTO THE MEDICAL TRANSPORT FIELD LAST JUNE WITH THE LATEST ACQUISITIONS THE COMPANY SAID IT NOW GENERATES ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF ANNUAL REVENUE FROM THIS INDUSTRY IT ALSO HAS INTERESTS IN SCHOOL BUS TRANSPORTATION LAIDLAW HAD TOTAL REVENUE OF ONE POINT NINE NINE BILLION DOLLARS IN THE FISCAL YEAR ENDED AUGUST THIRTY FIRST CONCERNING YOUR JANUARY TWENTY EIGHTH PAGE ONE ARTICLE ON THE ROBBIES' SALE OF THE MIAMI DOLPHINS TO WAYNE HUIZENGA AS THE PERSON CLOSEST TO JOE ROBBIE'S FINANCES PRIOR TO HIS DEATH AND TO THE DOLPHINS AND JOE ROBBIE STADIUM FINANCES AFTER HIS DEATH I SUBMIT THE FOLLOWING AFTER JOE ROBBIE'S DEATH IN NINETEEN NINETY THE ROBBIE TRUSTEES DID NOT CLOSE A TRANSACTION WITH M. HUIZENGA THAT THEIR FATHER QUOTE WOULDN'T QUOTE MR. ROBBIE REALIZED THAT HE NEEDED AN EQUITY INVESTMENT IN HIS TEAM AND STADIUM HAD HE NOT DIED HE WOULD HAVE COMPLETED THE HUIZENGA TRANSACTION TIME HAS PROVEN THAT MR. ROBBIE AND THE TRUSTEES MADE THE RIGHT MOVE BY BRINGING IN MR. HUIZENGA AS A PARTNER THE TEAM AND STADIUM HAVE COME FROM A DISMAL FINANCIAL CONDITION AT MR. ROBBIE'S DEATH TO A SOUND CONDITION IN NINETEEN NINETY THREE THE DOLPHINS WILL SHOW A PROFIT IN NINETEEN NINETY THREE NOT THE SEVEN MILLION DOLLAR LOSS REPORTED BY YOUR SOURCE TEAM PLAYER SALARIES WERE NINTH HIGHEST OF THE TWENTY EIGHT N. F. L. TEAMS THE ROBBIE TRUSTEES HAVE WORKED DILIGENTLY TO MAKE THE TEAM AND STADIUM SUCCESSFUL FOR THEIR COLLECTIVE FAMILY INTERESTS THE SALE OF THE DOLPHINS TO MR. HUIZENGA WAS THE PRUDENT STEP FOR THE TRUSTEES AND THE SALE WILL WITHSTAND SCRUTINY PENNSYLVANIA AND SOUTHERN GAS COMPANY PHILADELPHIA SAID ITS SHAREHOLDERS APPROVED THE COMPANY'S AGREEMENT AND PLAN OF MERGER WITH N. U. I. CORPORATION IN A STATEMENT PENNSYLVANIA AND SOUTHERN GAS SAID OF THE EIGHTY FOUR POINT THREE PERCENT OF THE SHARES VOTING EIGHTY THREE POINT EIGHT PERCENT APPROVED THE MERGER CONSUMMATION OF THE MERGER IS SUBJECT TO CERTAIN REGULATORY APPROVALS AS REPORTED UTILITY HOLDING COMPANY N. U. I. AGREED TO ACQUIRE THE GAS CONCERN IN A STOCK TRANSACTION VALUED AT ABOUT SEVENTEEN MILLION DOLLARS N. U. I. IS BASED IN BEDMINSTER N. J. UNDER THE AGREEMENT EACH PENNSYLVANIA AND SOUTHERN GAS HOLDER WILL RECEIVE NO LESS THAN TWO POINT FOUR AND NO MORE THAN THREE N. U. I. COMMON SHARES FOR EACH PENNSYLVANIA SHARE HELD N. U. I. SHARES WERE AT TWENTY SIX DOLLARS AND FIFTY CENTS DOWN TWELVE POINT FIVE CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING A. B. VOLVO THE SWEDISH AUTOMOTIVE GROUP SAID IT SOLD ITS ENTIRE STAKE IN INVESTMENT COMPANY A. B. CUSTOS RESULTING IN A CAPITAL GAIN OF APPROXIMATELY NINE HUNDRED SIXTEEN MILLION KRONOR ONE HUNDRED FOURTEEN MILLION DOLLARS QUOTE THE TRANSACTION IS PART OF VOLVO'S CONCENTRATION ON ITS CORE OPERATIONS AND A WAY OF REDUCING OUR DEBT QUOTE SAID VOLVO CHIEF EXECUTIVE OFFICER SOEREN GYLL IN A STATEMENT WE BELIEVE THAT BROADER DISTRIBUTION OF CUSTOS'S SHARES WILL BENEFIT CUSTOS VOLVO SAID THE SHARES WERE SOLD TO SWEDISH AND FOREIGN INSTITUTIONS VOLVO'S HOLDING IN CUSTOS AMOUNTED TO TEN MILLION FIVE HUNDRED FORTY EIGHT THOUSAND FOUR HUNDRED FORTY FIVE CLASS A SHARES AND ONE MILLION FOUR HUNDRED SEVENTY FOUR THOUSAND SIX HUNDRED EIGHTY TWO CLASS B. SHARES CORRESPONDING TO TWENTY FIVE POINT FOUR PERCENT OF THE SHARE CAPITAL AND TWENTY NINE POINT ONE PERCENT OF THE VOTING RIGHTS THE TOTAL SALE PRICE FOR THE SHARES WAS ONE POINT SEVEN FOUR BILLION KRONOR VOLVO SAID COLGATE PALMOLIVE COMPANY AUTHORIZED REPURCHASE OF AS MANY AS FIVE MILLION COMMON SHARES ON THE OPEN MARKET OR IN PRIVATE TRANSACTIONS THE GLOBAL CONSUMER PRODUCTS COMPANY HAS ABOUT ONE HUNDRED FORTY EIGHT MILLION SHARES OUTSTANDING PLUMP UP THE COUCH PILLOWS OLYMPICS FANS C. B. S. WILL BROADCAST ONE HUNDRED NINETEEN AND ONE HALF HOURS OF THE WINTER GAMES STARTING WITH THE OPENING CEREMONIES TOMORROW NIGHT IF THAT ISN'T ENOUGH NEVER FEAR T. N. T. WILL CARRY FORTY FIVE HOURS DURING THE WEEKDAYS WHILE C. B. S. IS REWAXING ITS SKIS AND POLISHING THE RUNNERS OF ITS LUGE GREG GUMBEL WILL BE THE PRIME TIME ANCHOR DOING HIS FIRST OLYMPICS MR. GUMBEL HAS MADE NO SECRET OF HIS DISLIKE OF COLD WEATHER AND UNFAMILIARITY WITH WINTER SPORTS BUT MOST AMERICANS HAVEN'T RIDDEN A BOBSLED OR TRIED A SKI JUMP EITHER AS FOR THE COLD WELL THE C. B. S. BROADCAST GUIDE NOTES THAT FEBRUARY TEMPERATURES IN LILLEHAMMER HAVE BEEN KNOWN TO DROP TO MINUS TEN DEGREES FAHRENHEIT WHICH QUOTE MEANT AN OUTDOOR HOST LOCATION FOR C. B. S. SPORTS' PRIMETIME BROADCASTS WAS NOT FEASIBLE QUOTE LUCKY GREG FOR THE FIRST TIME AT AN OLYMPICS TINY CAMERAS WILL BE MOUNTED ON THE HELMET OF THE U. S. HOCKEY TEAM'S GOALIE AND ON THE LUGE RIDDEN BY AMERICAN DUNCAN KENNEDY AND FOR BLIMP LOVERS THERE WILL BE AERIAL SHOTS WEATHER PERMITTING THANKS TO TONYA HARDING AND NANCY KERRIGAN THE T. V. AUDIENCE FOR THESE OLYMPICS COULD WELL SET RECORDS YOU CAN BET C. B. S. ANCHORS WON'T STOP PROMOTING THE WOMEN'S FIGURE SKATING WHICH DOESN'T START UNTIL FEBRUARY TWENTY THIRD RIVAL NETWORKS SEEM TO HOPE SNOWED UNDER AMERICANS WILL BE TEMPTED AWAY FROM THE OLYMPICS BY WARM WEATHER FARE SEVERAL OF FOX'S REGULAR SERIES WILL HAVE TROPICAL LOCALES NOT TO MENTION TWO WEEKS OF WILD ADVENTURES IN PARADISE A. B. C. WILL ATTEMPT TO RAISE MALE TEMPERATURES WITH SPORTS ILLUSTRATED SWIMSUIT NINETY FOUR N. B. C. IS KEEPING COOL BUT OFFERING A HOST OF SPECIALS FROM THE N. B. A. ALL STAR GAME TO DANIELLE STEEL'S ONCE IN A LIFETIME BESIDES A TORCH A KING TROLLS AND A GIANT EGG THE OPENING CEREMONIES WILL INCLUDE ONE OF THE NEW PRODUCT PLACEMENT COUPS OF ALL TIME SNOWRUNNER INCORPORATED A STARTUP COMPANY IN SAINT PAUL MINNESOTA MARKETS A PRODUCT CALLED A SNOW SKATE A BOOT WITH A RUNNER ON THE BOTTOM THAT'S A BIT LIKE A ROLLERBLADE FOR THE SLOPES DURING THE CEREMONIES ONE HUNDRED TEN NORWEGIAN MILITARY OFFICERS WILL USE SNOWRUNNERS TO DESCEND THE SKI JUMP HILL IN FORMATION A SPECTACLE THAT WILL BE BEAMED TO SOMETHING LIKE TWO POINT FIVE BILLION PEOPLE WORLD WIDE C. B. S. EIGHT P. M. ELEVEN P. M. NATIONAL GOLF PROPERTIES INCORPORATED ACQUIRED THE EL DORADO LAKES GOLF COURSE IN GILBERT ARIZONA FROM A PHOENIX INVESTOR GROUP TERMS WEREN'T DISCLOSED NATIONAL GOLF PROPERTIES SAID AMERICAN GOLF SANTA MONICA CALIFORNIA WILL LEASE THE GOLF COURSE AND ADD IT TO ITS PHOENIX AREA CENTRAL RESERVATION SYSTEM IF YOU'VE BEEN DILIGENTLY SAVING FOR RETIREMENT FOR YOUR CHILDREN'S EDUCATION OR TO REACH SOME OTHER LONG TERM GOAL IT MAY BE TIME TO REVISE YOUR INVESTMENT ASSUMPTIONS BECAUSE OF LOWER INTEREST RATES MANY OF THE LONG TERM PLANNING ASSUMPTIONS PEOPLE MADE DURING THE PAST DECADE ARE NO LONGER VALID QUOTE MOST GENERALS ARE ALWAYS FIGHTING THE LAST WAR AND THAT INCLUDES PORTFOLIO GENERALS SAYS LAURENCE B. SIEGEL OF IBBOTSON ASSOCIATES A CHICAGO FINANCIAL RESEARCH AND CONSULTING FIRM JUST ASK INVESTORS WHO EXPECTED TO RETIRE ON THEIR BOND PORTFOLIOS BUT SAW THEIR INCOME HALVED AS INTEREST RATES PLUMMETED AND THE BONDS WERE CALLED OR ASK THE PEOPLE WHO BOUGHT CASH VALUE LIFE INSURANCE POLICIES BASED ON INVESTMENT RETURN PROJECTIONS OF TEN PERCENT ELEVEN PERCENT OR EVEN TWELVE PERCENT AND THEN FACED MUCH HIGHER PREMIUMS AS ACTUAL RETURNS DWINDLED PETER KATT A WEST BLOOMFIELD MICHIGAN FEE ONLY LIFE INSURANCE ADVISER RECALLS ONE CLIENT WHO CAME TO HIM WITH A SIX MILLION DOLLAR WHOLE LIFE POLICY BOUGHT IN NINETEEN EIGHTY EIGHT THE CLIENT HAD BEEN TOLD IT WOULD TAKE SEVEN ANNUAL PAYMENTS OF ONE HUNDRED EIGHTEEN THOUSAND SIX HUNDRED DOLLARS BEFORE THE POLICY HAD ENOUGH CASH VALUE TO PAY ITS OWN PREMIUMS FROM DIVIDENDS NOW THE INSURER TELLS HIM IT WILL TAKE FIFTEEN YEARS OF PREMIUMS TO MAKE THE POLICY WORK AS PLANNED THE PROBLEM SAYS MR. KATT IS THAT THE CLIENT BOUGHT HIS POLICY AT A TIME OF VERY HIGH FIXED INCOME RETURNS AND DIDN'T ALLOW FOR THE FACT THAT PERFORMANCE COULD DROP BACK TO HISTORICAL NORMS INDEED HISTORY PROVIDES AN IMPORTANT REALITY CHECK WHEN FIGURING LONG TERM PLANS AFTER THE HEADY GAINS OF RECENT YEARS IT'S SOBERING TO KNOW FOR EXAMPLE THAT SINCE NINETEEN TWENTY SIX LONG TERM BONDS HAD COMPOUND AVERAGE TOTAL RETURNS INCLUDING PRICE CHANGES PLUS INCOME OF JUST FIVE PERCENT A YEAR DURING THE SAME PERIOD LONG TERM INTEREST RATES AVERAGED FIVE POINT TWO PERCENT WHILE TOTAL RETURNS ON STOCKS AVERAGED TEN POINT THREE PERCENT A YEAR COMPOUNDED IN OTHER WORDS THE PEOPLE WHO BOUGHT AN INSURANCE POLICY BASED ON THE ASSUMPTION OF TWELVE PERCENT FIXED INCOME RETURNS WERE THUMBING THEIR NOSES AT HISTORY WITH A LOT OF LUCK THOSE POLICIES MIGHT HAVE MET THOSE EXPECTATIONS BUT THE ODDS WERE AGAINST IT PARTICULARLY GIVEN THE LONG TERM NATURE OF A LIFE INSURANCE POLICY OF COURSE IT IS EASY TO OVERSIMPLIFY YES ON AVERAGE BONDS' COMPOUND RETURNS WERE FIVE PERCENT BUT ACTUAL RETURNS RANGED FROM MINUS NINE POINT TWO PERCENT IN NINETEEN SIXTY SEVEN WHEN BONDHOLDERS SAW BIG LOSSES TO A WHOPPING FORTY POINT FOUR PERCENT IN NINETEEN EIGHTY TWO THE SAME IS TRUE FOR THE STOCK MARKET THE TEN POINT THREE PERCENT COMPOUND AVERAGE INCLUDES A DISMAL LOSS OF FORTY THREE POINT THREE PERCENT IN NINETEEN THIRTY ONE AND A RECORD SETTING GAIN OF FIFTY FOUR PERCENT IN NINETEEN THIRTY THREE BUT BECAUSE RETURNS TEND TO REVERT TO THE MEAN OVER TIME THE HISTORICAL AVERAGES DO PROVIDE SOME REASONABLE YARDSTICKS TO ESTIMATE FUTURE RETURNS MR. SIEGEL RECOMMENDS USING AVERAGE HISTORICAL RETURNS RATHER THAN COMPOUND AVERAGES THAT HELPS ADJUST YOUR INVESTMENT PLANS FOR THE RISK THAT RETURNS IN INDIVIDUAL YEARS MAY BE A LOT LOWER OR HIGHER THAN THE AVERAGE HE SAYS BY THIS MEASURE STOCKS LOOK EVEN MORE ATTRACTIVE IN SIXTY EIGHT YEARS OF PERFORMANCE AVERAGE ANNUAL RETURNS ON STOCKS HAVE BEAT THOSE OF BONDS BY ABOUT SEVEN POINT TWO PERCENTAGE POINTS MR. SIEGEL SAYS THE MARKET'S CURRENT EXPECTATION FOR BOND RETURNS AS REFLECTED IN THE YIELD ON THE THIRTY YEAR TREASURY BOND IS SIX POINT FIVE PERCENT THAT SUGGESTS AN ANNUAL RETURN OF THIRTEEN POINT SEVEN PERCENT FOR STOCKS HE SAYS THE HISTORICAL AVERAGES ALSO SHOW THAT LONG TERM BONDS HAVE TENDED TO YIELD ONE POINT FIVE PERCENTAGE POINTS MORE THAN SHORT TERM MONEY MARKET INVESTMENTS WHILE MONEY MARKET RETURNS HAVE AVERAGED ROUGHLY A HALF PERCENTAGE POINT OVER INFLATION WITH INFLATION NOW RUNNING AT ABOUT THREE PERCENT THESE RELATIONSHIPS DON'T QUITE LINE UP WITH TODAY'S REALITY BUT THEN CURRENT COMPARISONS RARELY JIBE WITH THE LONG TERM AVERAGES THESE ARE SIMPLY HISTORICAL NUMBERS AND WE BELIEVE THAT THE ECONOMIC RELATIONSHIPS THAT CAUSED THEM TO OCCUR IN THE PAST ARE STILL THERE MR. SIEGEL SAYS THE LINK BETWEEN INVESTMENT RETURNS AND INFLATION IS A PARTICULARLY IMPORTANT PART OF ANY INVESTMENT ANALYSIS PEOPLE OFTEN MAKE THE MISTAKE OF CONSIDERING ONLY NOMINAL RETURNS FORGETTING TO SUBTRACT BOTH THE INFLATION RATE WHICH HAS AVERAGED THREE POINT TWO PERCENT A YEAR DURING THE PAST SIXTY EIGHT YEARS AND THE IMPACT OF TAXES IF YOU DO YOU'LL FIND THAT A FIVE PERCENT RETURN WITH THREE PERCENT INFLATION IS ACTUALLY BETTER THAN A TEN PERCENT RETURN WITH EIGHT PERCENT INFLATION THAT'S BECAUSE SOMEONE PAYING FOR EXAMPLE TWENTY PERCENT TAXES ON A FIVE PERCENT RETURN WOULD PAY ONE PERCENTAGE POINT IN TAX LEAVING THEM AHEAD OF INFLATION BY ONE PERCENTAGE POINT BUT THE SAME TAX ON A TEN PERCENT RETURN WOULD COST TWO PERCENTAGE POINTS IN TAX LEAVING THE INVESTOR WITH AN EIGHT PERCENT RETURN ONLY ENOUGH TO KEEP PACE WITH INFLATION FOR LONG TERM PLANNING ONE APPROACH IS TO CALCULATE AHEAD OF TIME HOW MUCH YOU NEED TO EARN OVER INFLATION TO ACHIEVE YOUR GOALS THEN BY LOOKING AT THE HISTORICAL RELATIONSHIPS BETWEEN VARIOUS INVESTMENTS AND INFLATION YOU CAN FIGURE OUT WHERE YOU SHOULD INVEST THIS KIND OF ANALYSIS OFTEN LEADS PEOPLE TO THE STOCK MARKET SAYS MICHAEL STOLPER A SAN DIEGO CONSULTANT WHO HELPS AFFLUENT INDIVIDUALS SELECT MONEY MANAGERS ANY TIME YOU MAKE A DECISION THAT YOU ARE GOING TO INCREASE YOUR NET WORTH ON AN AFTER TAX BASIS IT WILL TAKE YOU INTO THE EQUITY MARKET HE SAYS BUT THEN YOU NEED TO FACTOR IN THE EMOTIONAL STRESS BASED ON HISTORICAL RETURNS WE ALL KNOW WE SHOULD HAVE OUR MONEY IN SMALL CAPITALIZATION AND AGGRESSIVE GROWTH STOCKS ADDS MR. STOLPER BUT MOST OF US ARE ILL PREPARED TO DEAL WITH THAT VOLATILITY HOW YOU USE HISTORICAL DATA ALSO DEPENDS ON WHAT YOU ARE TRYING TO EVALUATE AND WHERE YOU ARE IN THE MARKET CYCLE WHEN PRICING LIFE INSURANCE POLICIES FOR EXAMPLE MR. KATT ALWAYS LIKES TO WORK WITH THE MOST CONSERVATIVE NUMBERS IN PROJECTING RETURNS THUS MINIMIZING THE RISK OF COMING UP SHORT AS A RESULT HE LOOKS AT HISTORICAL RETURNS DURING TIMES WHEN RATES ARE RISING WHEN RATES ARE FALLING HE USES THAT DOWNWARD TREND TO PROJECT FUTURE RETURNS WILLIAM G. BRENNAN A TAX AND FINANCIAL ADVISER IN WASHINGTON DESCRIBES HIS PLANNING PROCESS AS QUOTE LOOKING BACK AND FORWARD AT THE SAME TIME QUOTE TO COME UP WITH A WORKING BALANCE PAST PERFORMANCE IS A REASONABLE INDICATOR JUST BE PREPARED TO ADJUST IT AS TIME GOES BY HE SAYS HIS CURRENT ASSUMPTIONS INFLATION RUNNING AT THREE PERCENT OR FOUR PERCENT A LADDERED PORTFOLIO OF LONGER TERM FIXED INCOME INVESTMENTS RETURNING SIX PERCENT TO SEVEN PERCENT AND EQUITIES RETURNING ABOUT TEN PERCENT ANOTHER WAY OF USING HISTORY IS TO DO A PEAK TO TROUGH COMPARISON OF ANY INVESTMENT YOU ARE CONSIDERING FIND OUT WHAT IS THE WORST THING THAT CAN HAPPEN TO YOU BECAUSE IT IS LIKELY TO HAPPEN AGAIN SAYS MR. STOLPER THE SAN DIEGO CONSULTANT THAT WAY HE SAYS YOU'LL UNDERSTAND THE FULL RANGE OF POSSIBLE CONSEQUENCES OF THE INVESTMENT CHOICES YOU'RE WEIGHING CENTURY TELEPHONE ENTERPRISES INCORPORATED SAID IT COMPLETED ITS ACQUISITION OF CELUTEL INCORPORATED FOR CASH AND STOCK CENTURY PAID FIFTY ONE POINT FOUR MILLION DOLLARS IN CASH PLUS ONE POINT NINE MILLION CENTURY COMMON SHARES CENTURY SAID THE PURCHASE PRICE IS EQUIVALENT TO THREE POINT SIX NINE NINE DOLLARS CASH PLUS ZERO POINT ONE FOUR NINE SHARES OF CENTURY COMMON STOCK FOR EACH COMMON SHARE OF CELUTEL CENTURY SAID IT WILL ALSO ASSUME FORTY ONE POINT SEVEN MILLION DOLLARS IN CELUTEL DEBT SEQUENT COMPUTER SYSTEMS INCORPORATED WHICH USES INTEL CORPORATION CHIPS IN ITS MINICOMPUTERS IS OPEN TO THE IDEA OF BASING FUTURE PRODUCTS ON THE NEW POWERPC CHIP MADE BY INTEL RIVALS SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER CASEY POWELL QUOTE WE'RE ALWAYS OPEN TO THAT WE'RE NOT LOCKED INTO INTEL SAID MR. POWELL A FORMER INTEL EXECUTIVE WHO LEFT THE COMPANY A DECADE AGO TAKING SIXTEEN COLLEAGUES WITH HIM TO START SEQUENT SEQUENT STRINGS INTEL CHIPS TOGETHER TO BUILD MULTIPROCESSING COMPUTERS THAT RIVAL MAINFRAMES IN POWER BUT COST MUCH LESS AT FIFTY THOUSAND DOLLARS TO TWO MILLION DOLLARS EACH POWERPC HAS A POTENTIAL TO BE AN ALTERNATIVE TO INTEL I THINK IT'S GOING TO BE A TWO HORSE RACE MR. POWELL SAID IN AN INTERVIEW BUT HE SAID HE'S NOT WORKING ON SWITCHING TO POWERPC AND HE'S NOT IN TALKS WITH APPLE COMPUTER INCORPORATED MOTOROLA INCORPORATED AND INTERNATIONAL BUSINESS MACHINES COMPANY THE ALLIANCE MAKING POWERPC MR. POWELL SAID SEQUENT HAS INCREASED MARKET SHARE FOR SYSTEMS THAT COST OVER SEVEN HUNDRED THOUSAND DOLLARS TO THIRTY EIGHT PERCENT IN NINETEEN NINETY THREE FROM TWENTY POINT THREE PERCENT IN NINETEEN NINETY TWO BUT GROSS MARGINS WHICH WERE FORTY EIGHT PERCENT IN THE FOURTH QUARTER ENDED DECEMBER THIRTY FIRST WILL LIKELY SLIP IN THE SINGLE DIGITS THIS YEAR HE SAID I JUST DON'T KNOW HOW MANY DIGITS HE SAID HE WOULDN'T COMMENT ON ANALYSTS' EXPECTATIONS THAT SEQUENT WILL HAVE FLAT TO SLIGHTLY INCREASED FIRST QUARTER EARNINGS OF TWELVE TO FIFTEEN CENTS A SHARE IN THE YEAR EARLIER QUARTER ENDED APRIL THIRD SEQUENT EARNED THREE POINT FOUR MILLION DOLLARS OR TWELVE CENTS A SHARE ON REVENUE OF SEVENTY SEVEN POINT SIX MILLION DOLLARS FOR THE MOST RECENT QUARTER ENDED JANUARY FIRST SEQUENT POSTED A NET LOSS OF FIFTEEN POINT ONE MILLION DOLLARS OR FIFTY CENTS A SHARE AFTER A TWENTY TWO POINT THREE MILLION DOLLAR RESTRUCTURING CHARGE DURING THE RESTRUCTURING SEQUENT LAID OFF EIGHTY FIVE WORKERS AND FORMED TWO BUSINESS UNITS ONE TO SELL HARDWARE AND A BUSINESS SOLUTIONS DIVISION CALLED ENTERPRISE WHICH DESIGNS AND INSTALLS NEW COMPUTER ARCHITECTURES THAT USE SEQUENT HARDWARE AND SYSTEMS SEQUENT COMPUTER SYSTEMS INCORPORATED EXPECTS THAT GROSS PROFIT MARGINS WHICH WERE FORTY EIGHT PERCENT IN THE FOURTH QUARTER WILL SLIP BY SINGLE DIGITS THIS YEAR AN ARTICLE FRIDAY SAID THE MARGINS WOULD SLIP IN SINGLE DIGITS STARING INTO A SEA OF BUSINESS SUITS HILLARY RODHAM CLINTON MADE A PITCH LAST SEPTEMBER TO A ROOMFUL OF CHIEF EXECUTIVES TO SUPPORT THE FAR REACHING HEALTH CARE BILL THAT THE WHITE HOUSE WAS PREPARING TO SEND TO CAPITOL HILL QUOTE I WANT TO BEGIN BY READING YOU WHAT WE BELIEVE IN QUOTE SHE TOLD THE MEETING OF THE BUSINESS ROUNDTABLE'S POLICY COMMITTEE SHE SPOKE OF GIVING EVERY AMERICAN ACCESS TO HEALTH CARE AND OF REINING IN SPIRALING MEDICAL COSTS SHE CALLED FOR BUILDING ON AND ENHANCING THE PRIVATE SYSTEM IF THESE SOUND FAMILIAR TO YOU THE FIRST LADY ADDED IT'S BECAUSE THEY'RE YOUR PRINCIPLES MANY OF THE CORPORATE CHIEFTAINS WERE IMPRESSED SHE DID A WONDERFUL JOB SAYS JOHN ONG CHAIRMAN OF B. F. GOODRICH COMPANY AND HEAD OF THE ROUNDTABLE BUT FIVE MONTHS LATER THE ADMINISTRATION'S APPEALS TO BIG BUSINESS HAVE BLOWN UP IN ITS FACE JUST LAST WEEK THE SAME ROUNDTABLE POLICY COMMITTEE VOTED SIXTY TO TWENTY TO SUPPORT A RIVAL HEALTH CARE PLAN BY REPRESENTATIVE JIM COOPER A TENNESSEE DEMOCRAT WITHIN THREE DAYS TWO OTHER MAJOR GROUPS THE U. S. CHAMBER OF COMMERCE AND THE NATIONAL ASSOCIATION OF MANUFACTURERS PUBLICLY DENOUNCED THE CLINTON PLAN THE CLINTON CAMP'S FAILURE TO WIN OVER THE CORPORATE COMMUNITY DESPITE ITS CONCERTED EFFORT IS DUE BOTH TO ITS OWN POLITICAL MISSTEPS AND TO EARLY POSTURING BY BUSINESSES EAGER TO GET CHANGES IN THE CLINTON PLAN BUT ABOVE ALL IT BOILS DOWN TO A VISCERAL FEELING AMONG MANY EXECUTIVES THAT DESPITE THE CLINTONS' CLAIMS TO THE CONTRARY THE ADMINISTRATION IS PROPOSING A BIG GOVERNMENT SOLUTION TO A PROBLEM BETTER LEFT TO THE MARKET AT A WHITE HOUSE MEETING LAST WEEK WITH PRESIDENT AND MRS. CLINTON PAUL O'NEILL CHAIRMAN OF ALUMINUM COMPANY OF AMERICA BLUNTLY CALLED THE ADMINISTRATION PLAN A VERTICAL DIVE INTO FEDERALIZATION ON ITS FACE THE CLINTON BILL WOULD SEEM A BOON FOR BIG BUSINESS BUT MANY OF THE FEATURES THAT THE WHITE HOUSE THOUGHT LARGE CORPORATIONS WOULD LOVE ARE INSTEAD LEAVING THEM GRUMBLING FOR EXAMPLE BY GUARANTEEING ALL AMERICANS COMPREHENSIVE HEALTH COVERAGE THE CLINTON PLAN WOULD ALLEVIATE THE BURDEN OF COST SHIFTING IN WHICH LARGE COMPANIES THAT INSURE THEIR WORKERS WIND UP BEARING THE COST OF CARE FOR THE UNINSURED A NEW BROOKINGS INSTITUTION STUDY FOUND THAT MANUFACTURERS' HEALTH INSURANCE BILLS WOULD DROP BY ONE THOUSAND THREE HUNDRED FORTY NINE DOLLARS A WORKER BUT PEPSICO INCORPORATED AND GENERAL MILLS INCORPORATED BOTH OF WHICH HAVE RESTAURANT CHAIN SUBSIDIARIES WITH LOTS OF PART TIME WORKERS HAVE BEEN OPPOSING THE PLAN'S REGULATIONS INCLUDING THE MANDATE THAT ALL BUSINESSES MUST HELP PAY FOR THEIR EMPLOYEES' HEALTH INSURANCE IN EARLY DECEMBER GENERAL MILLS CHAIRMAN H. BREWSTER ATWATER WROTE TO FELLOW C. E. O.S TO URGE THEM TO SUPPORT THE COOPER BILL AS THE BEST VIABLE ALTERNATIVE TO THE CLINTON PLAN WHITE HOUSE OFFICIALS CONTEND THAT THIS CAMPAIGN ALONG WITH VIGOROUS OPPOSITION BY INSURANCE AND PHARMACEUTICAL COMPANIES HAS STOKED GENERAL BUSINESS SENTIMENT AGAINST THEIR BILL BY CAPPING THE RATE OF GROWTH IN HEALTH INSURANCE PREMIUMS THE CLINTON PROPOSAL WOULD SAVE THE COMPANIES MORE THAN NINETY BILLION DOLLARS A YEAR BY TWO THOUSAND FOUR THE CONGRESSIONAL BUDGET OFFICE CONCLUDED IN AN ANALYSIS THIS WEEK BUT BESIDES DISAGREEING WITH THE MEANS OF ACHIEVING THIS COST REDUCTION PRICE CONTROLS MANY EXECUTIVES QUOTE ARE JUST NOT CONFIDENT THE CAPS WILL HOLD AND THAT THE PROMISE OF LONG TERM SAVINGS WILL PLAY OUT QUOTE SAYS RICH OSTUW THE CHIEF ACTUARY FOR HEALTH PLANS AT THE TOWERS PERRIN CONSULTING FIRM AND A WHITE HOUSE ADVISER ON ITS PROPOSAL BY ALLOWING COMPANIES WITH MORE THAN FIVE THOUSAND WORKERS TO OPT OUT OF THE NEW REGIONAL INSURANCE PURCHASING SYSTEM THAT THE PLAN WOULD ESTABLISH THE WHITE HOUSE THOUGHT IT WAS LEAVING BIG COMPANIES FREE TO MANAGE THEIR OWN HEALTH PLANS BUT NOT ONE OF MY FORTUNE FIVE HUNDRED COMPANY MEMBERS SAYS IT WILL TAKE ADVANTAGE OF THE PROVISION SAYS JAMES KLEIN EXECUTIVE DIRECTOR OF THE ASSOCIATION OF PRIVATE PENSION AND WELFARE PLANS ONE REASON EVEN CORPORATE GIANTS FEAR BEING MUSCLED OUT OF THE MARKET BY THE BIG REGIONAL ALLIANCES WE'D BE SMALL FISH IN THE SEA SAYS KENNETH PORTER CHIEF ACTUARY AT DUPONT COMPANY COMPANIES ARE ALSO ANNOYED THAT THEY WOULD BE SUBJECT TO A ONE PERCENT OF PAYROLL SURCHARGE IF THEY OPTED OUT OF THE REGIONAL ARRANGEMENT BY HAVING THE GOVERNMENT TAKE OVER EIGHTY PERCENT OF THE HEALTH INSURANCE COSTS FOR EARLY RETIREES THE ADMINISTRATION PLAN WOULD RELIEVE LARGE COMPANIES OF AN ENORMOUS FINANCIAL BURDEN BUT THIS SWEETENER HAS HELPED TO ENTICE ONLY THE BIG THREE AUTO MAKERS SEVERAL LARGE STEEL COMPANIES AND A FEW OTHERS WITH MOSTLY OLDER WORK FORCES MANY C. E. O.S DOUBT THEIR COMPANIES WOULD BENEFIT VERY MUCH AND ANYWAY THEY SUSPECT WITH GOOD REASON THAT THIS PROVISION CAN'T GET BY CONGRESS THE ADMINISTRATION'S WOOING OF THE BUSINESS ROUNDTABLE BEGAN LONG BEFORE MRS. CLINTON'S WELL RECEIVED SPEECH IN SEPTEMBER A YEAR AGO GOODRICH'S MR. ONG AND OTHER EXECUTIVES MET WITH THE NEWLY INAUGURATED PRESIDENT AND VICE PRESIDENT GORE THEY ASKED TO BE ALLOWED TO OFFER THEIR HEALTH CARE IDEAS TO THE ADMINISTRATION'S POLICY DRAFTERS MR. CLINTON AGREED THAT LED TO AN EARLY MEETING IN WILLIAMSBURG VIRGINIA WITH MRS. CLINTON MR. ONG AND ROBERT WINTERS CHAIRMAN OF PRUDENTIAL INSURANCE COMPANY OF AMERICA AND THE HEAD OF THE ROUNDTABLE'S HEALTH POLICY TASK FORCE THEN CAME ANOTHER SESSION WITH THE FIRST LADY IN JUNE AND NUMEROUS CONSULTATIONS WITH IRA MAGAZINER CHIEF ARCHITECT OF THE ADMINISTRATION'S PLAN SOME OF THE CORPORATIONS' CONCERNS WERE NARROW CENTERING ON SUCH TECHNICAL ISSUES AS THE WHITE HOUSE DESIRE TO GIVE THE STATES GREAT FLEXIBILITY IN RUNNING THE NEW HEALTH SYSTEM COMPANIES OPERATING THROUGHOUT THE U. S. FEAR DEALING WITH FIFTY DIFFERENT SETS OF REQUIREMENTS OTHER WORRIES WERE MORE FUNDAMENTAL INCLUDING THAT COMPANIES WOULD END UP CEDING CONTROL OF THEIR HEALTH BENEFITS PROGRAMS TO THE REGIONAL ALLIANCES REDUCING THEIR ROLE TO SIMPLY WRITING CHECKS BUT AFTER ALL THE DISCUSSION MR. ONG SAYS CERTAINLY THE STRUCTURE OF THEIR PLAN DOESN'T REFLECT THE VIEW WE PUT FORWARD IN DECEMBER FOLLOWING MRS. CLINTON'S TALK TO THE ROUNDTABLE THE GROUP'S HEALTH TASK FORCE HELD A CONFERENCE CALL TO DISCUSS ITS POSITION IN THE INTENSIFYING DEBATE THE PANEL HAD THREE OPTIONS SUPPORT THE CLINTON PLAN SUPPORT THE COOPER BILL OR STAY NEUTRAL WITHIN JUST FORTY FIVE MINUTES IT VOTED FOURTEEN TO ONE TO FAVOR THE COOPER BILL MANY EXECUTIVES ON THE PHONE INCLUDING FIVE CONSECUTIVE SPEAKERS FROM THE INSURANCE OR PHARMACEUTICAL INDUSTRIES ACCORDING TO ONE LISTENER EXPRESSED DISMAY THAT THE CLINTON PLAN WOULD FORCE TOO MANY REGULATIONS DOWN THEIR THROATS HAVE YOU EVER TRIED TO SWALLOW A WATERMELON ASKS DAVID JONES THE CHAIRMAN OF HUMANA INCORPORATED THE HOSPITAL CHAIN OTHERS PREFERRED THE COOPER BILL BECAUSE IT UNLIKE MR. CLINTON'S OR OTHER REFORM PROPOSALS HAD BIPARTISAN SPONSORSHIP ON CAPITOL HILL THE RECOMMENDATION THEN WENT TO THE EIGHTY FIVE MEMBER POLICY COMMITTEE WHICH SETS OFFICIAL ROUNDTABLE POSITIONS SOME IN THE WHITE HOUSE WERE WORRIED THEY KNEW THAT PRACTICALLY THEIR ONLY SOLID CORPORATE SUPPORT SO FAR WAS FROM THE AUTO COMPANIES AND STEELMAKERS THE ONLY DISSENTER IN THE FOURTEEN TO ONE VOTE HAD BEEN CHRYSLER CORPORATION SOON THE ADMINISTRATION BEGAN TO FORGE A WORKING RELATIONSHIP WITH LEADERS AT SIX OTHER COMPANIES PRESUMED TO BE SYMPATHETIC TO ITS EFFORTS IN LATE DECEMBER MRS. CLINTON INVITED THE SIX TO THE WHITE HOUSE THEY WERE PAUL ALLAIRE OF XEROX CORPORATION A DEMOCRAT CONSIDERED A FRIEND OF BILL EDGAR WOOLARD OF DUPONT THOUGHT TO BE VERY CONCERNED ABOUT COST SHIFTING GEORGE FISHER OF EASTMAN KODAK COMPANY JOSEPH GORMAN OF T. R. W. INCORPORATED HAROLD POLING OF FORD MOTOR COMPANY AND EDWIN ARTZT OF PROCTER AND GAMBLE COMPANY DURING THE SESSION MRS. CLINTON AND MR. MAGAZINER SAID THE ADMINISTRATION WANTED TO BEGIN CONSULTING SERIOUSLY WITH BIG BUSINESS TO ADDRESS ITS CONCERNS ABOUT THE HEALTH BILL THEY SUGGESTED SETTING UP A PROCESS BY WHICH STAFFERS OF THE SIX COMPANIES WOULD MEET REGULARLY WITH MR. MAGAZINER'S STAFF AND THE TWO ADMINISTRATION OFFICIALS WITH THE CLOSEST TIES TO BUSINESS ROBERT RUBIN THE HEAD OF THE NATIONAL ECONOMIC COUNCIL AND DEPUTY TREASURY SECRETARY ROGER ALTMAN BOTH ONCE SUCCESSFUL INVESTMENT BANKERS THE MEETINGS BEGAN BUT ON JANUARY THIRTEENTH AND FOURTEEN THE POLICY COMMITTEE TOOK UP THE ISSUE OF THE COOPER ENDORSEMENT IN CONFERENCE CALLS JUST AS THE WHITE HOUSE WAS REALLY TURNING UP THE HEAT VOICE AFTER VOICE SAID OVER THE PHONE LINES I GOT A CALL FROM RUBIN QUOTE I GOT A CALL FROM ALTMAN QUOTE I DID TOO RUBIN CALLED ME ABOVE ALL THE ADMINISTRATION OFFICIALS PLEADED WITH THE EXECUTIVES TO DELAY TAKING PUBLIC ACTION UNTIL AFTER THE PRESIDENT'S STATE OF THE UNION SPEECH ON JANUARY TWENTY FIFTH THE VOTE WAS FORTY FIVE TO FOURTEEN TO ENDORSE A RESOLUTION SUPPORTING THE COOPER BILL AS A STARTING POINT A SECOND VOTE WAS THIRTY TWO TO TWENTY FIVE TO IGNORE THE WHITE HOUSE APPEALS AND ANNOUNCE THE TALLY IMMEDIATELY WHY SOME THOUGHT SHOULD WE SUBJECT OURSELVES TO MORE PRESSURE BUT ROUNDTABLE LEADERS CONSIDERING THE MAJORITY TOO SMALL DECIDED TO WAIT UNTIL THEIR REGULARLY SCHEDULED FEBRUARY SECOND MEETING TAKE ANOTHER VOTE AND THEN ANNOUNCE A POSITION BY THEN THE WHITE HOUSE WASN'T ABOUT TO TURN BACK DESPITE SOME OFFICIALS' RESERVATIONS ABOUT ALL THE LOBBYING HAROLD ICKES THE NEW YORK ATTORNEY BROUGHT IN LAST MONTH TO OVERSEE THE SELLING OF THE HEALTH CARE PLAN WAS ONE WITH SERIOUS CONCERNS IF THE AGGRESSIVE ARM TWISTING FAILED IT WOULD ONLY UNDERSCORE THE DEFEAT HE AND SOME OTHERS FEARED BUT SOME THOUGHT THAT THE ADMINISTRATION WOULD BE CRITICIZED FOR FOLDING TOO SOON IF IT DIDN'T GO ALL OUT I THINK IT WOULD HAVE BEEN JUST AS BAD IF NOT WORSE TO HAVE PEOPLE LIKE ONG SAY THEY WEREN'T TALKING TO US SAYS JEFF ELLER A TOP CLINTON HEALTH AIDE KNOWING IT STOOD VIRTUALLY NO CHANCE OF GETTING THE ROUNDTABLE TO BACK THE CLINTON PLAN THE WHITE HOUSE SOUGHT ONLY TO PREVENT THE GROUP FROM PUBLICLY BACKING THE COOPER BILL THE DAY BEFORE THE VOTE MRS. CLINTON CALLED ABOUT TEN C. E. O.S TO THE WHITE HOUSE THE PRESIDENT CAME IN AND CHATTED WITH THE GROUP FOR HALF AN HOUR THEN THREE OF THE FRIENDLIER C. E. O.S XEROX'S MR. ALLAIRE T. R. W.'S MR. GORMAN AND P. AND G'S MR. ARTZT WENT TO CAPITOL HILL WHERE HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI WAS TRYING TO PERSUADE MR. ONG PRUDENTIAL'S MR. WINTERS AND UNION PACIFIC CORPORATION CHAIRMAN DREW LEWIS TO STAY NEUTRAL AN ARRAY OF ADMINISTRATION OFFICIALS INCLUDING MR. ICKES MR. MAGAZINER AND SENIOR POLICY ADVISER GEORGE STEPHANOPOULOS LINED THE ROOM TALKING TO COLLEAGUES BACK IN THE WHITE HOUSE MR. ICKES LATER CALLED MR. WINTERS A NINETEENTH CENTURY COAL BARON SENSING DEFEAT A GROUP OF OFFICIALS DECIDED TO SINGLE OUT MR. WINTERS PUBLICLY AND SUGGEST THAT THE INSURANCE INTERESTS WERE THE DRIVING FORCE ROBERT BOORSTIN A WHITE HOUSE COMMUNICATIONS OFFICIAL LIT INTO MR. WINTERS AT A TELEVISED FORUM WITH WHITE HOUSE COUNSELOR DAVID GERGEN BUT AFTER THEY RETURNED TO THE WHITE HOUSE MR. RUBIN AND MR. ALTMAN TOLD THEM TO STOP SAYING IT WASN'T WISE FOR THE WHITE HOUSE TO ATTACK PEOPLE BY NAME THAT AFTERNOON THE C. E. O.S TOOK A FINAL VOTE ROY VAGELOS CHAIRMAN OF MERCK AND COMPANY WARNED AGAINST TRUSTING THE ADMINISTRATION'S STATEMENTS HE SAID HE WAS STILL DISMAYED BY THE ADMINISTRATION'S HANDLING OF THE ISSUE OF CHILDHOOD IMMUNIZATIONS IT CHARGED THAT HIGH VACCINE PRICES WERE LEAVING CHILDREN UNPROTECTED AND ACCUSED IT OF RENEGING ON A COMPROMISE HE THOUGHT DRUG COMPANIES HAD REACHED LAST YEAR WHAT HAPPENED AFTER THE ROUNDTABLE VOTE WAS PRECISELY WHAT THE WHITE HOUSE FEARED MOST A DOMINO EFFECT THE FOLLOWING MORNING THE CHAMBER OF COMMERCE WHICH HAD BEEN GENERALLY FAVORABLE TOWARD THE CLINTON HEALTH CARE PLAN BOWED TO PRESSURE FROM HOUSE REPUBLICANS AND DELIVERED BLISTERING TESTIMONY AGAINST IT THEN THE NATIONAL ASSOCIATION OF MANUFACTURERS LABELED THE PLAN QUOTE DEFICIENT IN NUMEROUS SIGNIFICANT AREAS QUOTE SAYS JERRY JASINOWSKI N. A. M.'S PRESIDENT THE ROUNDTABLE VOTE CERTAINLY CAUSED A NUMBER OF OUR PEOPLE TO FEEL WE OUGHT TO TAKE AN EVEN HARDER LINE ADMINISTRATION OFFICIALS EXPRESS CONFIDENCE THAT IN THE END THEY WILL BE ABLE TO RESOLVE MANY OF THEIR DIFFERENCES WITH BIG BUSINESS AS HEALTH CARE LEGISLATION MOVES THROUGH CONGRESS THEY NOTE THAT BUSINESS SUPPORT FOR THE PRESIDENT'S ECONOMIC PLAN OR AT LEAST THE RANKS OF THOSE WILLING TO HOLD THEIR FIRE GRADUALLY GREW AND EVEN IN BACKING THE COOPER BILL ROUNDTABLE OFFICIALS DISAGREED WITH SOME OF ITS MAJOR PROVISIONS ESPECIALLY A LIMITATION ON EMPLOYERS' ABILITY TO DEDUCT EMPLOYEE HEALTH BENEFIT COSTS I THINK THE DIFFERENCES BETWEEN THE ADMINISTRATION AND THE LARGE BUSINESS GROUPS ARE EXAGGERATED MR. ALTMAN SAYS ADDING WE THINK THERE WILL BE MEANINGFUL BUSINESS SUPPORT ONE SOURCE OF THAT MAY BE THE BROADBASED NATIONAL LEADERSHIP COALITION FOR HEALTH CARE REFORM WHICH HAS ENDORSED AN EMPLOYER MANDATE AND UNIVERSAL COVERAGE AMONG ITS BIG CORPORATE MEMBERS ARE CATERPILLAR INCORPORATED GEORGIA PACIFIC CORPORATION AND H. J. HEINZ COMPANY ANOTHER GROUP OF SEVENTEEN BIG COMPANIES CALLED THE CORPORATE HEALTH CARE COALITION AND INCLUDING MCDONNELL DOUGLAS CORPORATION ALLIEDSIGNAL INCORPORATED AND ATLANTIC RICHFIELD COMPANY RECENTLY SAID IT IS PREPARED TO ACCEPT AN EMPLOYER MANDATE IN THE RIGHT CONTEXT MOST OF THE C. E. O.S I TALK TO ARE IN FAVOR OF UNIVERSAL COVERAGE AND COST CONTAINMENT MR. RUBIN SAYS BUT OPPONENTS OF MR. CLINTON'S BILL DON'T AGREE THE SMALL BUSINESS LOBBY WHICH HAS LONG FOUGHT HIS PLAN IS HOPING TO FORGE FORMAL TIES WITH BIG BUSINESS SAYS JOHN MOTLEY OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WHICH REPRESENTS MORE THAN SIX HUNDRED THOUSAND MOM AND POP FIRMS THEY BRING THE MONEY AND WE BRING THE GRASS ROOTS HUMANA INCORPORATED IS A LARGE MANAGED CARE COMPANY IN FRIDAY'S PAGE ONE ARTICLE ABOUT HOW THE CLINTONS LOST BIG BUSINESS SUPPORT FOR THEIR HEALTH CARE PLAN HUMANA WAS INCORRECTLY IDENTIFIED AS A HOSPITAL COMPANY CLINTON'S BUDGET PLAYS TO GENERALLY FAVORABLE REVIEWS BUT SOME FIGHTS LOOM WITH NO BIG TAX RISE TO SHOOT AT AND THE BUDGET WITHIN SPENDING CAPS REPUBLICANS FIND LITTLE TO ATTACK LIBERAL DEMOCRATS PROBABLY WILL SOFTEN CLINTON'S CUTS IN HOUSING AND HOME HEATING AID PROGRAMS BUT THEY ESCHEW A MAJOR CHALLENGE REPRESENTATIVE BLACKWELL WHO REPRESENTS SOME OF PHILADELPHIA'S BLACK NEIGHBORHOODS TELLS TREASURY CHIEF BENTSEN QUOTE I'M NOT ARGUING WITH YOU QUOTE BUT CLINTON'S PLAN TO CUT TWO HUNDRED SIXTY SEVEN MILLION DOLLARS FOR LIGHT RAIL SYSTEMS MAY BE DERAILED BY KEY LAWMAKERS SOME SIXTY TWO POINT FIVE MILLION DOLLARS IS FOR A PROJECT IN NEW JERSEY HOME OF SENATOR LAUTENBERG THE CHAIRMAN OF AN APPROPRIATIONS SUBCOMMITTEE MASSACHUSETTS REPRESENTATIVE FRANK MOVES TO LINE UP DEMOCRATIC SUPPORT TO ELIMINATE A TWO POINT FIVE BILLION DOLLAR INCREASE IN DEFENSEBUDGET AUTHORITY OVER LAST YEAR SOME CUTS SUCH AS ELIMINATING FIFTY MILLION DOLLARS FOR SUNFLOWER AND COTTONSEED OIL EXPORTS MAY PASS BECAUSE THEIR CONGRESSIONAL BACKERS ARE GONE BOSNIA ACTION SOOTHES U. S. RELATIONS WITH THE U. N. AS FUNDING REQUESTS NEAR U. S. OFFICIALS CHEER SECRETARY GENERAL BOUTROS BOUTROS GHALI'S DECISION TO PRESSURE NATO MEMBERS INTO THREATENING FORCE AGAINST BOSNIA'S SERBS THEY EXPECT HIM TO HELP KEEP ALLIES IN LINE IF THE SERBS RESIST THEY SAY U. S. AMBASSADOR ALBRIGHT HAS BEEN POUNDING ON THE U. N. LEADER FOR CROSSING THE U. S. ON ISSUES FROM SOMALIA TO BOSNIA WITHIN DAYS CLINTON WILL SIGN HIS LONG DELAYED PEACEKEEPING DOCTRINE WHICH LIMITS BUT DOESN'T RULE OUT PLACING U. S. TROOPS UNDER U. N. CONTROL THAT EXCEPTION WILL RAISE CONGRESSIONAL IRE AS THE WHITE HOUSE SEEKS MORE MONEY TO PAY THE U. S. SHARE OF GROWING U. N. PEACEKEEPING COSTS ALSO HARD TO SWALLOW AN OFFICIAL CONCEDES THE DOCTRINE PUTS THE PENTAGON IN THE PEACEKEEPING BUSINESS TO STAY LOBBYING HEATS UP AS SWEEPING TELECOMMUNICATIONS BILLS MOVE ON A FAST TRACK A NEW COALITION OF LONG DISTANCE PHONE COMPANIES HIRES A PUBLIC RELATIONS FIRM AND A GRASS ROOTS LOBBYING OUTFIT THEIR MESSAGE COMPETITION WOULD BE STIFLED IF THE BABY BELLS ARE ALLOWED TO OFFER LONG DISTANCE SERVICE WHILE STILL CONTROLLING LOCAL PHONE NETWORKS THE BABY BELLS PUSH FOR A FINAL BILL THAT WOULD LET THEM START MAKING TELECOMMUNICATIONS EQUIPMENT IMMEDIATELY OVERALL THE MAJOR BILLS TO REVAMP TELECOMMUNICATIONS REGULATION PICK UP SUPPORT FROM DIVERSE INDUSTRY GROUPS INCLUDING THE BELLS LONG DISTANCE CARRIERS AND CABLE T. V. COMPANIES BACKERS NOW EXPECT CONGRESS TO PASS LEGISLATION THIS YEAR CONGRESS HAS GOTTEN THE COMMUNICATIONS RELIGION AND IS READY TO ACT SAYS MONTANA SENATOR BURNS ONE POSSIBLE HITCH A HOTLY DISPUTED PROVISION TO LET THE BELLS OFFER INTRASTATE LONG DISTANCE SERVICE A BOON TO PACIFIC TELESIS IN CALIFORNIA DECLINING HEALTH OF HOUSE APPROPRIATIONS CHAIRMAN NATCHER AT AGE EIGHTY FOUR SETS OFF A SCRAMBLE FOR A SUCCESSOR LIBERAL WISCONSIN REPRESENTATIVE OBEY MAY CHALLENGE ELDERS INCLUDING IOWA'S SMITH OBEY WOULD SYMBOLIZE A NEW GENERATION OF LEADERSHIP FOR A PANEL THAT CONTROLS MUCH OF CLINTON'S INVESTMENT AGENDA BUT PENNSYLVANIA'S MURTHA MAY BE A RIVAL MISSION IMPOSSIBLE THE DEMOCRATIC NATIONAL COMMITTEE ENLISTS POLLSTER STAN GREENBERG AND POLITICAL CONSULTANT JAMES CARVILLE TO FIND A UNITED THEME THAT ALL DEMOCRATS CAN RUN ON THIS YEAR THE FIRST DECISION IS TO RULE OUT LAST FALL'S THEME PERSONAL SECURITY FAREWELL TO ARMS PREPARING TO LEAVE SOMALIA THE U. S. PLANS TO TURN OVER TO THE SOMALI POLICE FIVE THOUSAND RIFLES ONE POINT EIGHT MILLION ROUNDS OF AMMUNITION FIVE THOUSAND ZERO POINT FOUR FIVE CALIBER PISTOLS WITH FIVE HUNDRED THOUSAND ROUNDS OF AMMUNITION AND FIVE THOUSAND SETS OF HANDCUFFS AND NIGHTSTICKS TOP T. MAN TO HIGHLIGHT THE TREASURY'S ROLE IN FIGHTING CRIME BENTSEN PLANS TO ELEVATE ASSISTANT SECRETARY RONALD NOBLE THE AGENCY'S CHIEF LAW ENFORCEMENT OFFICIAL TO UNDERSECRETARY THAT TITLE USUALLY IS RESERVED FOR OFFICIALS WHO OVERSEE DOMESTIC AND INTERNATIONAL FINANCE SLOW SENATE CONFIRMATIONS LEAVE MANY HOLES IN THE CLINTON ROSTER AT LAST COUNT TWO HUNDRED THIRTY ONE OR NEARLY ONE THIRD OF THE SEVEN HUNDRED FORTY ONE PEOPLE NOMINATED HAD YET TO BE CONFIRMED AMONG THOSE CAUGHT IN THE BACKLOG HAS BEEN NEW U. S. TREASURER MARY ELLEN WITHROW THAT MEANS BUSH TREASURY SECRETARY BRADY'S SIGNATURE STILL APPEARS ON DOLLAR BILLS MUCH TO THE CHAGRIN OF CURRENT TREASURY CHIEF BENTSEN WITH A YEAR END RUSH CLINTON BROUGHT HIS RECORD OF POLITICAL NOMINEES UP TO A PAR WITH PREDECESSORS BUT ABOUT ONE HUNDRED FIFTY SLOTS STILL LACK APPOINTEES THERE STILL ISN'T AN I. R. S. CHIEF COUNSEL S. E. C. COMMISSIONER MARY SCHAPIRO IS UNDER STRONG CONSIDERATION FOR COMMODITY FUTURES TRADING COMMISSION CHAIRMAN A POST THAT HAS GONE UNFILLED FOR MORE THAN A YEAR THE WHITE HOUSE PERSONNEL OFFICE PRIVATELY COMPLAINS TO NOMINEES THAT ITS OWN UNDERSTAFFING IS CAUSING DELAYS MINOR MEMOS ASKED HOW HE WAS PREPARING FOR TESTIMONY TO CONGRESS ON THE CLINTON HEALTH PLAN C. B. O. DIRECTOR REISCHAUER SAID QUOTE I'M STANDING IN THE KITCHEN AND HAVING MY WIFE THROW POTS AND PANS AT ME. QUOTE TOUCHTONE WARRIOR WHITE HOUSE AIDE GEORGE STEPHANOPOULOS HAS HIS LEFT PINKIE IN A SPLINT AFTER SOME OVERZEALOUS PHONE BUTTON PUNCHING AMONG EIGHTY ONE EXPERTS SIGNING A LETTER TO CLINTON BACKING A TOUGH TRADE STANCE WITH JAPAN IS MICHAEL CRICHTON AUTHOR OF RISING SUN AND JURASSIC PARK A U. S. SURGEONS' GROUP STUNNED THE MEDICAL AND HEALTH POLICY WORLD BY ENDORSING A NATIONAL QUOTE SINGLE PAYER QUOTE HEALTH SYSTEM FOR THE U. S. IN WHICH THE GOVERNMENT WOULD CONTROL MEDICAL FEES AND PAY MEDICAL BILLS WITH TAXPAYER FUNDS THE WHITE HOUSE DOESN'T SUPPORT A SINGLE PAYER SYSTEM BUT IT REACTED WITH ENCOURAGEMENT TO THE AMERICAN COLLEGE OF SURGEONS' STANCE PARTLY BECAUSE SUCH A PLAN WOULD GUARANTEE UNIVERSAL COVERAGE THE DOW JONES INDUSTRIALS DROPPED THIRTY SIX POINT FIVE EIGHT TO THREE THOUSAND EIGHT HUNDRED NINETY FIVE POINT THREE FOUR REFLECTING INVESTORS' CONCERNS ABOUT RISING INTEREST RATES THE MARKET WEAKENED AT MIDDAY WHEN ELAINE GARZARELLI A WELL KNOWN ANALYST SAID A FOUR PERCENT TO SEVEN PERCENT CORRECTION IS POSSIBLE ALTHOUGH SHE REMAINS BULLISH A. T. AND T. PLANS TO CUT AS MUCH AS FIFTEEN PERCENT OF THE WORK FORCE IN ITS LONG DISTANCE SERVICES UNIT OR FIFTEEN THOUSAND JOBS THE REDUCTIONS ARE SET OVER TWO YEARS AND ARE TO INCLUDE EIGHT THOUSAND MANAGERS G. M. POSTED FOURTH QUARTER EARNINGS OF ONE POINT ONE EIGHT BILLION DOLLARS REVERSING A YEAR EARLIER LOSS AND FINISHING THE YEAR WITH A PROFIT FOR THE FIRST TIME SINCE NINETEEN EIGHTY NINE BUT DISAPPOINTMENT THAT NEITHER G. M. NOR FORD OFFERED A BIG EARNINGS SURPRISE THIS WEEK LED TO A SELL OFF OF AUTO STOCKS G. M. SHARES FELL ONE DOLLAR AND SEVENTY FIVE CENTS TO SIXTY TWO DOLLARS AND FIFTY CENTS AN INVESTMENT FUND LED BY LEON BLACK OFFERED TO ACQUIRE ABOUT ONE HUNDRED FORTY MILLION DOLLARS OF DEBT SECURED BY SOME OF THE BEST PROPERTIES OWNED BY OLYMPIA AND YORK'S U. S. OPERATIONS IN AN ATTEMPT TO BECOME A BIGGER PLAYER IN THE RESTRUCTURING OF THE U. S. DEVELOPER THE U. S. SUSPENDED TRADE TALKS WITH JAPAN LAST NIGHT HOPING THE CLINTON HOSOKAWA SUMMIT TODAY WILL YIELD CONCESSIONS AND END THE STALEMATE THE S. E. C. IS ASKING THIRTY MUTUAL FUND GROUPS FOR DETAILED INFORMATION ABOUT PERSONAL TRADING BY THEIR PORTFOLIO MANAGERS SPURRED BY GROWING CONCERNS ABOUT POSSIBLE SELF DEALING TAX REFUND FRAUD COULD BE COSTING THE GOVERNMENT BILLIONS OF DOLLARS A REPORT PREPARED FOR THE I. R. S. SHOWED BRODERBUND SHARES ROSE TWENTY TWO PERCENT IN THE THREE DAYS OF TRADING PRECEDING THE ANNOUNCEMENT THAT ELECTRONIC ARTS PLANS TO ACQUIRE THE COMPANY LEADING SOME ANALYSTS TO ASSERT THAT INSIDE INFORMATION ABOUT THE DEAL HAD LEAKED OUT TANDY EXPECTS TO REPORT STRONG FOURTH QUARTER EARNINGS AND PREDICTS A SURGE IN SALES FOR NINETEEN NINETY FOUR MARKING A REBOUND A YEAR AFTER MOVING TO SHED ITS COMPUTER MANUFACTURING OPERATIONS GTECH WON A SEVEN YEAR TWO HUNDRED MILLION DOLLAR CONTRACT FOR A STATEWIDE ELECTRONIC BENEFITS TRANSFER SYSTEM IN TEXAS TO REPLACE THE FOOD STAMPS PROGRAM AMERICA WEST AIRLINES ASKED THE U. S. BANKRUPTCY COURT TO PROHIBIT THE SALE OR TRANSFER OF ITS SECURITIES TO PRESERVE THE COMPANY'S TAX BENEFITS M. C. A. ACQUIRED A STAKE IN CLOSELY HELD INTERPLAY PRODUCTIONS A MAKER OF C. D. ROM COMPUTER AND VIDEO GAMES ATLANTIC RICHFIELD'S CHAIRMAN LODWRICK COOK WAS NAMED TO HEAD REBUILD L. A. A GROUP FORMED TO REVITALIZE BLIGHTED AREAS OF THE CITY BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED TWENTY POINT TWO FOUR OFF SEVENTEEN POINT ONE SEVEN COMMODITIES OIL FOURTEEN DOLLARS AND FIFTY SIX CENTS A BARREL OFF FOUR CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY FOUR POINT EIGHT EIGHT UP ZERO POINT ONE ZERO SPOT INDEX ONE HUNDRED THIRTY ONE POINT OH OH OFF ZERO POINT ONE FOUR DOLLAR ONE HUNDRED EIGHT POINT ONE FIVE YEN OFF ZERO POINT TWO ZERO ONE POINT SEVEN FIVE THREE THREE MARKS OFF ZERO POINT ZERO ZERO FIVE TWO THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CALPINE CORPORATION ONE HUNDRED FIVE MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIRST TWO THOUSAND FOUR PRICED AT PAR TO YIELD NINE POINT TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLE B. ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE B. BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY AND COMPANY FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED FIFTEEN MILLION DOLLARS OF NOTES DUE FEBRUARY TWENTY FOURTH NINETEEN NINETY NINE PRICED INITIALLY AT PAR TO YIELD FIVE POINT FIVE TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF NINETEEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY FEDERAL HOME LOAN BANK SYSTEM SEVENTY FIVE MILLION DOLLARS OF NOTES DUE FEBRUARY TWENTY THIRD TWO THOUSAND ONE PRICED AT PAR TO YIELD FIVE POINT NINE FIVE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF TWENTY SEVEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY AND COMPANY KAISER ALUMINUM AND CHEMICAL CORPORATION TWO HUNDRED TWENTY FIVE MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND TWO PRICED AS NINE POINT EIGHT SEVEN FIVES AT NINETY NINE POINT THREE TWO FOUR TO YIELD TEN PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR FOUR YEARS ARE RATED SINGLE B. ONE BY MOODY'S AND SINGLE B. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY KAISER ALUMINUM AND CHEMICAL IS A UNIT OF KAISER ALUMINUM CORPORATION JOHN Q. HAMMONS HOTELS L. P. THREE HUNDRED MILLION DOLLARS OF FIRST MORTGAGE NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND FOUR PRICED AT PAR TO YIELD EIGHT POINT EIGHT SEVEN FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLE B. ONE BY MOODY'S AND DOUBLE B. MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY AND COMPANY NORTHERN STATES POWER COMPANY TWO HUNDRED MILLION DOLLARS OF FIRST MORTGAGE BONDS DUE FEBRUARY FIRST NINETEEN NINETY NINE SOLD THROUGH A COMPETITIVE BID WON BY MORGAN STANLEY AND COMPANY THE BONDS WERE PRICED AS FIVE POINT FIVES AT NINETY NINE POINT EIGHT TWO FIVE TO YIELD FIVE POINT FIVE FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF TWENTY BASIS POINTS ABOVE TREASURYS AND ARE RATED DOUBLE A TWO BY MOODY'S AND DOUBLE A MINUS BY S. AND P. DAKTRONICS INCORPORATED ONE POINT THREE MILLION COMMON SHARES PRICED AT SEVEN POINT SIX TWO FIVE DOLLARS EACH ACCORDING TO THE COMPANY THE OFFERING IS THROUGH AN UNDERWRITING SYNDICATE HEADED BY CRAIG HALLUM A DIVISION OF HAMILTON INVESTMENTS INCORPORATED NETMANAGE INCORPORATED ONE POINT NINE MILLION COMMON SHARES PRICED AT THIRTY THREE DOLLARS EACH THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS AND COMPANY AND OPPENHEIMER AND COMPANY THERATECH INCORPORATED TWO POINT ONE MILLION COMMON SHARES PRICED AT THIRTEEN POINT SIX TWO FIVE DOLLARS EACH THROUGH UNDERWRITERS LED BY WILLIAM BLAIR AND COMPANY PACIFIC GULF PROPERTIES INCORPORATED INITIAL OFFERING OF THREE POINT NINE MILLION COMMON SHARES PRICED AT EIGHTEEN DOLLARS AND TWENTY FIVE CENTS EACH THROUGH UNDERWRITERS LED BY ALEXANDER BROWN AND SONS INCORPORATED FEDERAL HOME LOAN MORTGAGE CORPORATION FIVE HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH AND COMPANY THE OFFERING SERIES G. ZERO TWO EIGHT IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT FIVE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS FEDERAL HOME LOAN MORTGAGE CORPORATION FOUR HUNDRED FIFTY MILLION DOLLARS OF REMIC SECURITIES OFFERED BY J. P. MORGAN SECURITIES THE OFFERING SERIES GOLD ONE THOUSAND SIX HUNDRED NINETY NINE IS BACKED BY FREDDIE MAC GOLD THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT SIX PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY SEVEN MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION THREE HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY BARCLAYS DE ZOETE WEDD SECURITIES INCORPORATED THE OFFERING SERIES NINETEEN NINETY FOUR TO FORTY FOUR IS BACKED BY FANNIE MAE THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT ONE TWO FIVE PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS BANCO UNB S. A. ARGENTINA FIFTY MILLION DOLLARS OF EIGHT PERCENT EUROBONDS DUE FEBRUARY TWENTY THIRD NINETEEN NINETY SIX AT ISSUE AND REOFFER PRICE NINETY SEVEN POINT FOUR EIGHT THREE VIA WEST MERCHANT BANK BONDS YIELD NINE POINT FOUR ONE PERCENT A MARGIN OF FOUR HUNDRED NINETY NINE BASIS POINTS OVER COMPARABLE U. S. TREASURY FEES ONE PAYABLE SEMIANNUALLY COFINOGA S. A. FRANCE ONE HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE MARCH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT NINE ONE VIA CHEMICAL INVESTMENT BANK PAYABLE QUARTERLY AT THREE MONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS FORTY BASIS POINTS FEES ZERO POINT TWO TWO COMMERBANK OVERSEAS FINANCE N. V. GERMAN PARENT ONE HUNDRED FIFTY MILLION OF SIX POINT TWO FIVE PERCENT EUROBONDS DUE DECEMBER TENTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED ONE POINT TWO FOUR VIA NATWEST CAPITAL MARKETS REOFFERED AT NINETY NINE POINT SIX FOUR TO YIELD SIX POINT THREE TWO PERCENT A MARGIN OF TWENTY SEVEN BASIS POINTS OVER COMPARABLE U. K. GILT GUARANTOR COMMERZBANK A. G. FEES ONE POINT EIGHT SEVEN FIVE DRESDNER FINANCE B. V. AMSTERDAM GERMAN PARENT TWO HUNDRED MILLION OF SIX PERCENT EUROBONDS DUE DECEMBER SEVENTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED POINT FOUR ONE VIA BARCLAYS DE ZOETE WEDD SECURITIES LIMITED AND U. B. S. LIMITED REOFFERED AT NINETY EIGHT POINT EIGHT ONE TO YIELD SIX POINT TWO FIVE PERCENT A MARGIN OF TWENTY BASIS POINTS OVER COMPARABLE U. K. GILT GUARANTOR DRESDNER BANK A. G. FEES ONE POINT EIGHT SEVEN FIVE EUROPEAN INVESTMENT BANK SUPRANATIONAL TEN BILLION GREEK DRACHMAS OF SEVENTEEN POINT FIVE PERCENT BONDS DUE MARCH EIGHTH NINETEEN NINETY NINE AT ISSUE PRICE PAR VIA HELLENIC INDUSTRIAL DEVELOPMENT BANK ETBA AND MIDLAND BANK ATHENS BONDS YIELD SEVENTEEN POINT NINE EIGHT PERCENT AT NINETY EIGHT POINT FIVE CO MANAGERS' BREAK EVEN PRICE FEES ONE POINT SIX TWO FIVE LESS ZERO POINT ONE TWO FIVE FOR LEAD MANAGER GENERAL ELECTRIC CAPITAL CORPORATION U. S. PARENT EIGHT HUNDRED MILLION DOLLARS OF EUROBONDS IN TWO TRANCHES VIA SWISS BANK CORPORATION INCLUDING FOUR HUNDRED MILLION DOLLARS OF FIVE POINT FIVE PERCENT BONDS DUE MARCH TENTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED ONE POINT FIVE TWO REOFFERED AT NINETY NINE POINT EIGHT NINE FIVE TO YIELD FIVE POINT FIVE TWO FIVE PERCENT A MARGIN OF THIRTEEN BASIS POINTS OVER COMPARABLE U. S. TREASURY FEES ONE POINT EIGHT SEVEN FIVE ISSUE ALSO INCLUDES FOUR HUNDRED MILLION DOLLARS OF FIVE PERCENT BONDS DUE MARCH TENTH NINETEEN NINETY SEVEN AT ISSUE PRICE ONE HUNDRED ONE POINT THREE SEVEN SEVEN FIVE REOFFERED AT ONE HUNDRED POINT ONE NINE TO YIELD FOUR POINT NINE THREE PERCENT A MARGIN OF NINE BASIS POINTS OVER COMPARABLE U. S. TREASURY FEES ONE POINT THREE SEVEN FIVE GOLDMAN SACHS GROUP LIMITED PARTNERS U. S. SEVEN HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY NINETEEN NINETY EIGHT AT ISSUE AND REOFFER PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL LIMITED PAYABLE QUARTERLY AT ZERO POINT THREE SEVEN FIVE POINT ABOVE THREE MONTH DOLLAR LIBOR CALLABLE QUARTERLY AT PAR AFTER TWO YEARS FEES ZERO POINT ONE INTERNATIONALE NEDERLANDEN BANK N. V. NETHERLANDS TWO HUNDRED MILLION CANADIAN DOLLARS OF FLOATING RATE EURONOTES DUE MARCH EIGHTH TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE PAR VIA KIDDER PEABODY SECURITIES COMPANY PAYABLE SEMIANNUALLY AT THIRTY BASIS POINTS BELOW SIX MONTH BANKERS' ACCEPTANCE RATE MAXIMUM COUPON NINE PERCENT MINIMUM SIX PERCENT FEES UNDISCLOSED LANDESKREDITBANK BADEN WUERTTEMBERG GERMANY TWO BILLION MARKS OF FLOATING RATE NOTES DUE FEBRUARY TWENTY FOURTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT ONE TWO FIVE VIA TRINKAUS AND BURKHARDT K. G. A. A. PAYABLE SEMIANNUALLY AT SIX MONTH MARK LIBOR FLAT FEES ZERO POINT TWO LESS ZERO POINT ZERO TWO FOR LEAD MANAGER NISSEN COMPANY JAPAN ONE HUNDRED NINETY MILLION MARKS OF ZERO POINT EIGHT SEVEN FIVE PERCENT EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH THIRD NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA NOMURA BANK DEUTSCHLAND GMBH WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES AT INDICATED PREMIUM TWO POINT FIVE PERCENT FROM MARCH SEVENTEENTH TO FEBRUARY TWENTY FOURTH NINETEEN NINETY EIGHT TERMS FIXED FEBRUARY SIXTEENTH FEES TWO POINT TWO FIVE LESS ZERO POINT ONE TWO FIVE FOR LEAD MANAGER STATE BANK OF SOUTH AUSTRALIA AUSTRALIA ONE HUNDRED MILLION AUSTRALIAN DOLLARS OF SIX PERCENT EUROBONDS DUE MARCH THIRTIETH NINETEEN NINETY EIGHT AT ISSUE PRICE ONE HUNDRED POINT EIGHT VIA BARCLAYS DE ZOETE WEDD SECURITIES LIMITED BONDS YIELD SIX POINT TWO FOUR PERCENT AT NINETY NINE POINT ONE SEVEN FIVE CO MANAGERS' BREAK EVEN PRICE GUARANTOR SOUTH AUSTRALIA FEES ONE POINT SEVEN FIVE LESS ZERO POINT ONE TWO FIVE FOR LEAD MANAGER SXL CORPORATION JAPAN TWO HUNDRED MILLION DOLLARS OF ONE POINT ONE TWO FIVE PERCENT EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE FEBRUARY TWENTY FOURTH NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LIMITED WARRANTS EXERCISABLE TO PURCHASE SHARES AT INDICATED PREMIUM TWO POINT FIVE PERCENT FROM MARCH TENTH TO FEBRUARY SEVENTEENTH NINETEEN NINETY EIGHT TERMS FIXED FEBRUARY SEVENTEENTH FEES TWO POINT TWO FIVE LESS ZERO POINT TWO FOR LEAD MANAGER THOMSON BRANDT INTERNATIONAL B. V. FRENCH PARENT ONE POINT FIVE BILLION FRENCH FRANCS OF SIX POINT THREE SEVEN FIVE PERCENT EUROBONDS DUE MARCH TENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT FIVE THREE FOUR VIA CREDIT COMMERCIAL DE FRANCE AND J. P. MORGAN ET COMPAGNIE S. A. REOFFERED AT NINETY EIGHT POINT NINE SIX TO YIELD SIX POINT FIVE TWO PERCENT A MARGIN OF SIXTY TWO BASIS POINTS OVER COMPARABLE FRENCH TREASURY GUARANTOR THOMSON S. A. FEES TWO TOYOTA MOTOR CREDIT CORPORATION JAPANESE PARENT THREE HUNDRED MILLION DOLLARS OF FIVE PERCENT EUROBONDS DUE MARCH TENTH NINETEEN NINETY SEVEN AT ISSUE PRICE ONE HUNDRED ONE POINT TWO EIGHT SEVEN FIVE VIA SWISS BANK CORPORATION REOFFERED AT ONE HUNDRED POINT ONE TO YIELD FOUR POINT NINE SIX PERCENT A MARGIN OF TWELVE POINT FIVE BASIS POINTS ABOVE THREE YEAR U. S. TREASURYS FEES ONE POINT THREE SEVEN FIVE WELSH WATER UTILITIES FINANCE P. L. C. U. K. ONE HUNDRED MILLION POUNDS OF SEVEN POINT ONE TWO FIVE PERCENT EUROBONDS DUE MARCH SEVENTEENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT ONE THREE EIGHT POUNDS VIA BARING BROTHERS AND COMPANY REOFFERED AT NINETY NINE POINT FIVE ONE THREE POUNDS TO YIELD SEVEN POINT OH SEVEN PERCENT MARGIN OF FORTY EIGHT BASIS POINTS OVER COMPARABLE U. K. GILT GUARANTOR DWR CYMRU CYFYNGEDIG WELSH WATER LIMITED FEES TWO WELSH WATER UTILITIES FINANCE P. L. C. U. K. ONE HUNDRED MILLION POUNDS OF SEVEN POINT SIX TWO FIVE PERCENT PARTLY PAID EUROBONDS DUE MARCH TWENTY FIRST TWO THOUSAND FOURTEEN AT ISSUE PRICE ONE HUNDRED POUNDS AND SEVENTY EIGHT PENCE VIA BARING BROTHERS AND COMPANY LIMITED REOFFERED AT NINETY EIGHT POINT NINE OH FIVE POUNDS TO YIELD SEVEN POINT SIX OH PERCENT A MARGIN OF SEVENTY SEVEN BASIS POINTS OVER COMPARABLE GILT GUARANTOR DWR CYMRU CYFYNGEDIG WELSH WATER LIMITED FEES TWO POINT FIVE SHELLING GUNFIRE SHATTERED A SARAJEVO CEASE FIRE HOURS AFTER IT BEGAN HEAVY ARTILLERY SHELLS AND MACHINE GUN FIRE STRUCK THE BOSNIAN CAPITAL LATE YESTERDAY WITNESSES SAID THE FIERCE BUT BRIEF ATTACK FOLLOWED A DAY OF RELATIVE CALM AS SERB FORCES THREATENED WITH NATO AIR RAIDS AGREED TO A CEASE FIRE AND ALLOWED U. N. PEACEKEEPERS TO MOVE INTO THEIR FRONTLINE POSITIONS THE GUNFIRE CAME FROM THE DIRECTION OF A HOTLY CONTESTED AREA NEAR VRBANJA BRIDGE THAT WAS NOT HANDED OVER TO THE U. N. PEACEKEEPERS BOSNIAN SERB POLITICAL AND MILITARY LEADERS GAVE CONFLICTING REACTIONS TO NATO'S ULTIMATUM WEDNESDAY ORDERING SERBS TO HALT THEIR SHELLING THE N. I. H. HAS DROPPED ITS THREE YEAR ATTEMPT TO PATENT THOUSANDS OF GENE FRAGMENTS FOUND BY ONE OF ITS SCIENTISTS THOUGH THE GOVERNMENT AGENCY SAID IT HOPED ITS ACTION WOULD END A RUSH BY COMPANIES AND OTHER COUNTRIES TO FILE SIMILAR PATENT CLAIMS THE DECISION MAY HAVE COME TOO LATE TO HAVE AN EFFECT THE SENATE APPROVED EIGHT POINT SIX BILLION DOLLARS IN RELIEF FOR VICTIMS OF THE LOS ANGELES EARTHQUAKE THE COSTLIEST DISASTER AID PACKAGE IN THE NATION'S HISTORY THE EIGHTY FIVE TO TEN VOTE CAME AFTER THE REJECTION OF SEVERAL PROPOSALS FOR SPENDING CUTS THAT WOULD HAVE SHELTERED THE BUDGET DEFICIT FROM THE COST OF QUAKE RELIEF AN INDEPENDENT COUNSEL BILL WAS PASSED THREE HUNDRED FIFTY SIX TO FIFTY SIX BY THE HOUSE AFTER LAWMAKERS REJECTED A G. O. P. PLAN TO HAVE THE NEUTRAL PROSECUTORS CONDUCT ALL CRIMINAL PROBES OF SENATE AND HOUSE MEMBERS THE BILL SIMILAR TO A SENATE PASSED VERSION WOULD ALLOW COURT APPOINTED COUNSELS TO INVESTIGATE TOP GOVERNMENT OFFICIALS ROSTENKOWSKI REIMBURSED THE GOVERNMENT EIGHTY TWO THOUSAND DOLLARS FOR POSSIBLY IMPROPER PURCHASES FROM THE HOUSE OFFICE SUPPLY SERVICE OVER A SIX YEAR PERIOD THE ILLINOIS DEMOCRAT CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE MADE THE PAYMENT LAST WEEK A FEDERAL JUDGE RULED IN SEATTLE THAT A WASHINGTON STATE LAW RESTRICTING THE NUMBER OF TIMES MEMBERS OF CONGRESS CAN PUT THEIR NAMES ON THE BALLOT FOR RE ELECTION IS UNCONSTITUTIONAL PLAINTIFFS SEEKING TO OVERTURN THE CONGRESSIONAL TERM LIMITS IN THE LAW INCLUDED HOUSE SPEAKER FOLEY CLINTON IS EXPECTED TO ISSUE AN EXECUTIVE ORDER TODAY REQUIRING FEDERAL AGENCIES AND POSSIBLY GOVERNMENT CONTRACTORS TO MONITOR THE EFFECTS OF THEIR ACTIONS ON ENVIRONMENTAL HEALTH IN MINORITY COMMUNITIES THE ORDER IS SAID TO BE VAGUE ABOUT THE EXTENT TO WHICH PRIVATE COMPANIES WILL BE COVERED GUNMEN IN NORTHERN SOMALIA SEIZED FIVE BRITONS INCLUDING TWO MEMBERS OF PARLIAMENT AND A SOMALI BUT A RELIEF OFFICIAL SAID ALL SIX HOSTAGES WERE FREED YESTERDAY AFTER BEING HELD OVERNIGHT U. N. OFFICIALS HAVE WARNED OF AN UPSURGE IN CLAN VIOLENCE AS PEACEKEEPERS WITHDRAW PROTESTS BY UNARMED PEASANTS SPREAD IN MEXICO'S IMPOVERISHED SOUTHERN STATE OF CHIAPAS THE PEASANTS SEIZED MAYORS' OFFICES IN THREE VILLAGES NEAR THE CITY OF SAN CRISTOBAL DE LAS CASAS POPE JOHN PAUL THE SECOND PROMISED TO FIGHT A EUROPEAN PARLIAMENT RESOLUTION PROPOSING THAT HOMOSEXUAL COUPLES BE ALLOWED TO MARRY AND TO ADOPT CHILDREN THE PONTIFF SAID QUOTE WE CAN'T LET THIS PASS QUOTE THOUSANDS OF CIVILIANS HAVE DIED IN ATTACKS BY GOVERNMENT AND REBEL FORCES IN SUDAN ACCORDING TO A U. N. REPORT WHICH ALSO ALLEGES THAT CHILDREN ARE BEING KIDNAPPED FOR USE AS SLAVES OR SOLDIERS A COURT HEARING IS SET FOR TODAY IN OREGON TO CONSIDER A REQUEST BY TONYA HARDING TO BLOCK THE U. S. OLYMPIC COMMITTEE FROM HOLDING A HEARING THAT COULD LEAD TO THE SKATER'S EXPULSION FROM THE WINTER GAMES RUSSIA'S FORMER ECONOMICS CHIEF URGED FORMATION OF A NEW BROAD BASED REFORMIST PARTY AHEAD OF THE NINETEEN NINETY SIX PRESIDENTIAL VOTE GAIDAR'S ACTION CAME AMID A SPLIT WITHIN RUSSIA'S CHOICE A PRO REFORM ALLIANCE HE LEADS IN PARLIAMENT MANDELA REGISTERED HIS AFRICAN NATIONAL CONGRESS AS A POLITICAL PARTY IN PREPARATION FOR SOUTH AFRICA'S FIRST ALL RACE ELECTIONS IN APRIL MEANWHILE AN UMBRELLA GROUP OF RIGHT WING WHITE POLITICIANS THE AFRIKANER VOLKSFRONT SAID IT WOULD BOYCOTT THE VOTE MOODY'S INVESTORS SERVICE INCORPORATED SAID IT LOWERED ITS RATINGS TO SINGLE A ONE FROM DOUBLE A THREE FOR ONE POINT EIGHT BILLION DOLLARS OF WALT DISNEY COMPANY LONG TERM DEBT SECURITIES INCLUDING SENIOR UNSECURED NOTES DEBENTURES AND MEDIUM TERM NOTES THE NEW YORK BASED RATING SERVICE SAID THE DOWNGRADES REFLECT EXPECTATIONS THAT OPERATIONS AT THE EURODISNEY THEME PARK NEAR PARIS WILL REMAIN QUOTE UNDER PRESSURE AT LEAST IN THE INTERMEDIATE TERM AND THAT AS A RESULT UNCERTAINTY OVER WALT DISNEY'S FUTURE FINANCIAL COMMITMENTS TO THE PROJECT WILL INCREASE ITS RISK PROFILE QUOTE MOODY'S SAID IT EXPECTS THE EURODISNEY DEBT RESTRUCTURING BEING NEGOTIATED BETWEEN DISNEY AND A GROUP OF LENDERS WILL LIKELY RESULT IN THE SHARING OF THE FINANCIAL BURDEN WITH CONCESSIONS FROM BOTH SIDES IT NOTED THAT RECENT SEASONAL EURODISNEY PRICE REDUCTIONS MAKE IT HARDER TO MAINTAIN REVENUE LEVELS WHILE CITING OTHER CHALLENGES FOR DISNEY WHICH IS BASED IN BURBANK CALIFORNIA DISNEY AS A WHOLE WILL REMAIN VERY PROFITABLE AND SHOULD CONTINUE TO GENERATE STRONG CASH FLOWS THANKS TO ITS MORE MATURE DIVERSIFIED FRANCHISES MOODY'S SAID BUT THE DOWNGRADES ALSO REFLECT DISNEY'S CHANGING OPERATING PROFILE WHERE EXTERNAL FUNDING AND SLASH OR CASH ON HAND MAY BE NEEDED TO HELP IT GROW AS A MULTIMEDIA PROVIDER OVER THE NEXT FEW YEARS A DISNEY SPOKESMAN SAID THE MOODY'S RATE CUT WAS ONLY A NOTCH AND IT SHOULDN'T IMPACT OUR BORROWING COST IN ANY WAY HE NOTED THAT THE COMPANY IS MAINTAINING ITS DOUBLE A RATING WITH STANDARD AND POOR'S CORPORATION MOODY'S INVESTORS SERVICE SAID IT LOWERED ITS RATINGS OF THE TELECOMMUNICATIONS COMPANY'S SENIOR LONG TERM DEBT TO SINGLE A TWO FROM SINGLE A ONE CITING THE COMPANY'S QUOTE CONTINUING DIFFICULTIES IN ACHIEVING ADEQUATE EARNINGS FROM ITS DIVERSIFICATION STRATEGY QUOTE THE MOVE AFFECTS ABOUT TWO HUNDRED TWENTY FIVE MILLION DOLLARS OF DEBT MIDLANTIC CORPORATION STANDARD AND POOR'S CORPORATION RAISED ITS RATINGS ON ABOUT FOUR HUNDRED MILLION DOLLARS OF DEBT OF THIS BANKING COMPANY INCLUDING RAISING SENIOR DEBT TO DOUBLE B. PLUS FROM DOUBLE B. S. AND P. WHICH REMOVED THE RATINGS FROM ITS CREDITWATCH REVIEW LIST SAID MIDLANTIC'S FINANCIAL PERFORMANCE CONTINUES TO IMPROVE AND NOTED FAVORABLE TRENDS IN DISPOSING OF PROBLEM ASSETS THE ASSET MOVES SHOULD LET MIDLANTIC CONCENTRATE ON LENDING INITIATIVES AND EXPLOIT ITS MARKET POSITION IN NEW JERSEY AND SOUTHEASTERN PENNSYLVANIA S. AND P. SAID MIDLANTIC IS BASED IN EDISON N. J. IT'S JUST BEFORE THE BIG NEW YEAR'S HOLIDAY AND AT FIVE YEAR OLD QUOTE CRAYON QUOTE SHINCHAN'S NURSERY SCHOOL EVERYBODY GETS TO HELP MAKE QUOTE MOCHI QUOTE A STICKY RICE TREAT THAT CAN BE SHAPED LIKE CLAY HIS CLASSMATES MAKE CUTE MOCHI GIRAFFES AND TRAINS SHINCHAN MEANWHILE PRODUCES A PILE OF QUITE REALISTIC PHALLUSES DRAWING SIGHS FROM HIS FRIENDS AND A FAMILIAR SCOLDING FROM HIS TEACHERS SHINCHAN IS THE ONLY CHILD OF THE FICTIONAL NOHARA FAMILY AND THE PROTAGONIST OF SIX VOLUMES AND TWENTY MILLION COPIES OF CRAYON COMIC BOOKS A WEEKLY TELEVISION CARTOON AND MOST RECENTLY A MOVIE A FULL BLOWN MERCHANDISING CAMPAIGN HAS PUT THE IRREVERENT CYNICAL CHILD ON FULLY FIVE HUNDRED DIFFERENT PRODUCTS FROM PACKAGED FOOD TO COMPUTER SOFTWARE HE'S BECOME THE SUBJECT OF LIVING ROOM AND MEDIA DEBATES THROUGHOUT THE COUNTRY THIS IS WHAT'S MOST GALLING ABOUT SHINCHAN HE COMES RIGHT OUT AND SAYS WHAT HE'S THINKING REGULARLY ABANDONING TATEMAE APPEARANCE FOR HONNE TRUE FEELINGS ADULT JAPANESE RAISED ON PROGRAMS SUCH AS THE LONG RUNNING SAZAE SAN WHICH CHRONICLES AN IDEALIZED FAMILY'S TRIALS AND TRIBULATIONS ARE OFTEN RELUCTANT TO CONSIDER SUCH AN OUTSPOKEN AND INCREASINGLY LECHEROUS TELEVISION ALTERNATIVE TO THEIR LIFESTYLES AND INTERACTIONS MORE SHOCKING TO JAPANESE THOUGH IS THE POSSIBILITY THAT THERE MAY BE A NEW KIND OF INDIVIDUAL EMERGING IN THEIR SOCIETY TWENTY THREE YEAR OLD ATSUKO NIWA OF SHINEI T. V. ASAHI THE CARTOON'S PRODUCER INSISTS THE MEDIA OFTEN SAYS SHINCHAN'S AN ABERRATION BUT HE'S NOT JAPAN'S LARGEST NEWSPAPER THE ASAHI SHIMBUN REPORTED LAST YEAR THAT SPEAKING IN SHINCHANISMS IS A NATIONWIDE TREND AMONG KIDS FROM FIVE ON UP AND THAT SUCH BEHAVIOR WAS ADDRESSED AT A CONFERENCE TITLED THE INFORMATION AGE AND CHILD REARING THE PAPER QUOTED A JAPANESE PSYCHOLOGIST REMARKS QUOTE IT'S IMPORTANT THAT ADULTS DON'T SLIP INTO THE SAME SPEAKING HABITS AND THAT THEY TEACH KIDS HOW IT FEELS TO BE TALKED TO THE WAY SHINCHAN DOES QUOTE SHINCHAN IS WATCHED BY SIXTY EIGHT PERCENT OF FOUR TO TWELVE YEAR OLDS THE NEWSPAPER REPORTED INEVITABLY THE SHINCHAN BOOM IS STARTING TO AFFECT THE YOUNGER GENERATION KIDS ARE COPYING HIS IMPUDENT SLUR ONE JAPANESE MOTHER I KNOW FRETS THAT HER CHILD IS PRACTICALLY TRANSFORMED INTO SHINCHAN AFTER HE WATCHES THE SHOW HIS STRAIGHTFORWARD TRULY CHILDLIKE HONESTY MAY SEEM REFRESHING YET ALL THE FUSS ABOUT SHINCHAN'S BEHAVIOR WHICH MOSTLY AMOUNTS TO BAD MANNERS IS REVEALING AS SHINCHAN HAS EVOLVED FROM ADULT COMIC BOOK HERO TO PRIME TIME CARTOON CHARACTER ANOTHER ASPECT OF HIS PERSONALITY HAS EMERGED ONE MUCH MORE DANGEROUS THAN HIS PRECOCIOUSNESS SHINCHAN IS AS NINETEEN YEAR OLD MAIKO IGA ASSERTS OFFENSIVE LEWD IS A BETTER WAY TO PUT IT AND THIS RAISES THE QUESTION OF WHOM SHINCHAN'S CREATORS ARE TRYING TO PLEASE THE WEEKLY CARTOON WHICH HAS AIRED AT SEVEN P. M. SINCE APRIL NINETEEN NINETY TWO IS SEEN BY TWENTY FIVE PERCENT OF JAPANESE HOUSEHOLDS THE SHOW STARTED OUT WITH STORY LINES FEATURING SHINCHAN'S HARMLESS PRANKS AND MISUNDERSTANDINGS AND WAS OFTEN SET AT HIS NURSERY SCHOOL IT HAS COME TO INCLUDE MORE AND MORE PERVERSITY THIS INCLUDES THE TRADITIONAL JAPANESE MALE'S DEROGATORY VIEW OF WOMEN WHICH IS PERHAPS NOT A SURPRISE THE PRIME TARGET IS FOUR TO TWELVE YEAR OLDS SAYS MS. NIWA BUT WE EVENTUALLY WANTED TO REACH YOUNG WORKING WOMEN AND MEN MY FATHER'S AGE TOO WE NEVER THOUGHT IT WOULD HAPPEN SO QUICKLY SHINCHAN'S OPENING SONG CHANGED LAST YEAR IN AN APPARENT ATTEMPT TO APPEAL TO THE OLDER SET REFLECTS A FAMILIAR CHAUVINIST ATTITUDE IT'S RACIER THAN THE ORIGINAL WHICH BEGAN FROM A DISTANCE HE'S FUN BUT UP CLOSE THAT WILLFULNESS THAT CHEEK IT'LL DRIVE YOU CRAZY NOW IT'S LADEN WITH PICKUP LINES SUCH AS QUOTE COME ON BABY COME ON BABY IF YOU LOOK AT ME THAT WAY I'LL BLUSH QUOTE AS WELL AS PART OF SHINCHAN'S BAWDY VERSION OF A TRADITIONAL NURSERY RHYME ABOUT AN ELEPHANT'S TRUNK IN ONE EPISODE SHINCHAN PEEKS UNDER HIS MOM'S SKIRT AS SHE PREPARES TO GO OUT THEN DECLARES YOU'RE NOT WEARING YOUR SEE THROUGH PANTIES IN ANOTHER ADAPTING HIS GRANDFATHER'S SONG ABOUT HIS FAVORITE FOODS THE FIVE YEAR OLD SINGS BRING ME T. BACK PANTIES HIGH LEG PANTIES MS. NIWA ADMITS THAT THE STATION RECEIVED COMPLAINTS FROM CONSERVATIVE PEOPLE BUT SHE LIKE MANY FANS IS WILLING TO FORGIVE HIM BECAUSE HE'S A PRESCHOOLER VIEWERS LIKE MS. IGA ON THE OTHER HAND COUNTER JUST BECAUSE HE'S A LITTLE BOY DOESN'T MAKE IT O. K. SEXUAL HARASSMENT IS NOW RECOGNIZED AS A SERIOUS PROBLEM IN ADULT SOCIETY WHY IS IT ACCEPTED IN A CHILDREN'S CARTOON LOTS OF KIDS MAY BE TAKING THESE SEXIST REMARKS SERIOUSLY SCOTT BRAUSE A TOKYO WRITER TRANSLATOR AND FATHER OF TWO PRESCHOOLERS AGREES QUOTE SHINCHAN'S ALWAYS GOT HIS HANDS IN SOME CHICK'S PANTS IF IT'S NOT HIS MOTHER IT'S HIS TEACHER QUOTE MAYBE THE RISQUE THEMES ARE INCLUDED TO KEEP ADULTS FROM CHANGING CHANNELS BUT MORE DIFFICULT TO FATHOM IS WHY THE SHINCHAN MOVIE A PRODUCT OF TOHO STUDIOS AND TARGETED AT FOUR TO SIX YEAR OLDS FEATURES A BAD GUY WHO BY BLACK MAGIC PUTS MANY OF THE CHARACTERS INCLUDING THE MALE PRINCIPAL OF SHINCHAN'S NURSERY SCHOOL INTO HIGH LEG BATHING SUITS A FIFTYSOMETHING WOMAN WHO TOOK HER THREE YEAR OLD GRANDDAUGHTER TO SEE IT SAID AFTERWARD IT DIDN'T CONFORM TO MY VALUES BUT I WOULDN'T CALL IT DIRTY EXACTLY IT WAS JUST ODD SO ALL THE KIDS WERE LAUGHING TOHO STUDIOS IS LAUGHING TOO ALL THE WAY TO THE BANK MORE THAN TWO MILLION JAPANESE HAVE SEEN THE FILM SINCE ITS JULY RELEASE MS. SAIKI IS A FREE LANCE WRITER IN KYOTO THIS WEEKEND COMMENCES THE WINTER OLYMPICS IN LILLEHAMMER EVEN LIFE FORMS ON THE MOON OF COURSE WILL BE TUNED IN FOR THE SKATE OFF OF THE CENTURY BUT ONE HAS TO WONDER ABOUT HOW THE REST OF THIS SNOW COVERED SPORT WILL PLAY IN ICE WEARY AMERICA WHERE EVEN THE GREAT LAKES ARE ALMOST FROZEN OVER ALL THOSE HOMEBOUND WITH LEGS CRACKED ON SLICK ICE MAY SPEND HOURS WITH WHITE NORWAY BUT SOME OF THE REST OF US MAY PREFER DAYDREAMING ABOUT SUMMERS SUN AND DRY PAVEMENT LONG FORGOTTEN BACK FROM THE SHADOWS OF THE COLD WAR FOR ONE MORE ADVENTURE IS BLACKFORD OAKES THE CENTRAL INTELLIGENCE AGENCY COVERT ACTIVITIES CHIEF FEATURED IN A BESTSELLING SERIES OF NOVELS BY WILLIAM F. BUCKLEY JUNIOR QUOTE A VERY PRIVATE PLOT QUOTE MORROW TWO HUNDRED SEVENTY TWO PAGES TWENTY DOLLARS THE TENTH AND SO SAYS ITS AUTHOR LAST OF THE OAKES CHRONICLES SHIFTS BETWEEN PAST AND FUTURE TENSIONS THE BOOK'S PRESENT IS NINETEEN NINETY FIVE WHEN A LIBERAL U. S. SENATOR BENT ON PASSING LEGISLATION THAT WOULD BAN SECRET C. I. A. ACTIVITIES TRIES TO FORCE OAKES TO TESTIFY ABOUT SOMETHING CALLED CYCLOPS THE SENATOR DOESN'T KNOW FOR SURE WHAT CYCLOPS WAS BUT HE CLAIMS IT BROUGHT THE WORLD TO THE BRINK OF NUCLEAR WAR OAKES RISKS BEING HELD IN CONTEMPT OF CONGRESS BY REFUSING TO TALK THROUGH FLASHBACKS THE READER LEARNS WHAT ALL THE FUSS IS ABOUT IN NINETEEN EIGHTY SIX A HANDFUL OF DISAFFECTED YOUNG RUSSIANS SOME OF THEM VETERANS OF THE DISASTROUS AFGHAN CAMPAIGN PLANNED THE ASSASSINATION OF PREMIER MIKHAIL GORBACHEV WHOM THEY HELD RESPONSIBLE FOR THEIR NATION'S ILLS WHEN THE PLOTTERS CAME TO THE ATTENTION OF A K. G. B. DOUBLE AGENT HE ALERTED HIS LONGTIME U. S. CONTACT OAKES WHO IN TURN WARNED PRESIDENT REAGAN THE PLOT OF COURSE WAS A FAILURE NOVELIST BUCKLEY DOES NOT ATTEMPT TO REWRITE HISTORY BUT SOME SUSPENSE IS GENERATED REGARDING THE FATE OF THE PLAYERS THE OTHER APPEAL OF THIS SMOOTHLY WRITTEN ENTERTAINMENT IS IN ITS SEEMINGLY KNOWLEDGEABLE PEEKS INSIDE THE CORRIDORS OF POWER AT MAKE BELIEVE MEETINGS WITH THE LIKES OF C. I. A. CHIEF WILLIAM CASEY AND INSIDE THE OVAL OFFICE WITH PRESIDENT REAGAN THE REAGAN EPISODES RING TRUEST AND FUNNIEST AS THE CHIEF EXECUTIVE LOOKS TO OLD MOVIES FOR HISTORICAL PRECEDENTS I REMEMBER IN MAN HUNT WHEN WALTER PIDGEON HAD HITLER AT HIS MOUNTAIN HIDEOUT RIGHT IN THE CROSSHAIRS OF HIS RIFLE MY HEAVENS HOW WE ALL WISH HE HAD SQUEEZED THAT TRIGGER TURN IN WALTER PIDGEON BECAUSE HE INTENDED TO SHOOT HITLER THAT'S CRAZY CRAZINESS OF A DIFFERENT SORT INFORMS MIRROR MAZE VILLARD THREE HUNDRED FIFTY EIGHT PAGES TWENTY ONE DOLLARS THE LATEST IN WILLIAM BAYER'S BOOKS FEATURING NEW YORK POLICE DEPARTMENT LIEUTENANT FRANK JANEK A YOUNG WOMAN RAISED ABOVE AN ELABORATE MIRRORED FUN HOUSE AND ABUSED THERE BY HER CARNIVAL WORKER FATHER ACTS OUT HER RITUAL REVENGE OBSESSIONS BY DRUGGING AND ROBBING MEN WHEN ONE VICTIM IS FOUND KILLED JANEK HUNTS THE YOUNG WOMAN THROUGH THE CITY'S MAZE AT THE SAME TIME THE LIEUTENANT IS FORCED TO RE ENTER ANOTHER LABYRINTH THE NOTORIOUS NINE YEAR OLD MENDOZA CASE WHICH SAW A WELL TO DO NEW YORKER CONVICTED OF ARRANGING THE MURDER OF THE WIFE WHO ENGAGED WITH HIM IN VIOLENT SEXUAL SCENARIOS DID AN OFFICIAL COVERUP RESULT IN OTHER KILLINGS JANEK'S CHIEF SENDS HIM TO CUBA IN SEARCH OF A VANISHED WITNESS MR. BAYER'S FICTIONAL MAZE IS WELL CONSTRUCTED FILLED WITH SURPRISING TURNS AND INTENTIONALLY FRUSTRATING DEAD ENDS DISCOVERED WITHIN IT ARE STRAIGHT AND CROOKED COPS DEVIOUS AND ABOVEBOARD ATTORNEYS CARING PSYCHIATRISTS COLDBLOODED PREDATORS AND A SURPRISINGLY SYMPATHETIC VICTIMIZER JANEK HIMSELF PROVES TO BE GOOD COMPANY A LIKABLE AND BELIEVABLE HERO MORE THAN A MATCH FOR THE MONSTERS HE EVENTUALLY FINDS THERE'S NOTHING MONSTROUS TO WORRY ABOUT IN THE LATEST ULTRACOZY MYSTERY OF LILIAN JACKSON BRAUN WHAT VIOLENCE THERE IS TAKES PLACE OFFSTAGE IN THE CAT WHO CAME TO BREAKFAST PUTNAM TWO HUNDRED FIFTY FOUR PAGES NINETEEN DOLLARS AND NINETY FIVE CENTS THE SIXTEENTH BOOK INVOLVING SMALL TOWN COLUMNIST MILLIONAIRE JIM QWILLERAN AND HIS TWO SIAMESE CATS ONE OF WHOM MAY HAVE USEFUL PSYCHIC ABILITIES THIS TIME OUT THE COLUMNIST AND HIS FELINES INVESTIGATE THE CURIOUS DOINGS ON BREAKFAST ISLAND A HISTORIC OFFSHORE SETTLEMENT RECENTLY DEVELOPED AS A VACATION SPOT THE OLD TIMERS RESENT THE NEWCOMERS BUT IS THERE ENOUGH BAD BLOOD TO LEAD TO MURDER READERS HUNGRY FOR MILD DETECTION AND LOTS OF CAT GROOMING WILL FIND QUOTE BREAKFAST QUOTE JUST THEIR CUP OF KIBBLE THE MORE HARD BOILED THOUGH MAY PROVE ALLERGIC TO THESE SIAMESE IN A LEAGUE APART FROM ANY OF THE BOOKS JUST DISCUSSED IS BOMBER'S LAW HENRY HOLT TWO HUNDRED NINETY SIX PAGES TWENTY TWO DOLLARS AND FIFTY CENTS BY GEORGE V. HIGGINS ONE OF THE MOST ACCOMPLISHED NOVELISTS EVER TO WRITE IN THE CRIME FICTION FIELD THIS TWENTY FIFTH HIGGINS BOOK HAS A BOSTON POLICE DETECTIVE HARRY DELL'APPA PREPARING TO ASSUME THE CASELOAD OF RETIRING VETERAN BOB BRENNAN THE GLARING OMISSION OF BRENNAN'S CAREER IS HIS FAILURE TO FIND GROUNDS TO ARREST SHORT JOEY MOSSI WHO IS ALMOST CERTAINLY A HIT MAN FOR THE MOB BRENNAN HAS BEEN STALKING MOSSI FOR YEARS WITHOUT TURNING UP ANY EVIDENCE DELL'APPA FINDS THIS PECULIAR AND HE BEGINS POKING INTO BRENNAN'S SECRETS AS WELL AS MOSSI'S MR. HIGGINS'S FORTE IS DIALOGUE BOMBER'S LAW IS TOLD ALMOST COMPLETELY THROUGH CONVERSATIONS ITS CHARACTERS ARE CHAMPION TALKERS THEIR SPEECHES FILLED WITH ENGROSSING DIGRESSIONS AND SELF REVEALING ASIDES ARTFULLY RESEMBLE REAL LIFE MONOLOGUES WITHOUT DUPLICATING REAL TALK'S FALSE STARTS AND DULL REPETITIONS THE AUTHOR IS ON RECORD AS BEING AN ADMIRER OF THE WORK OF THE LATE JOHN O'HARA A WRITER WHO WAS AN EXPERT AT SHOWING BY TELLING WITH BOMBER'S LAW MR. HIGGINS EARNS ANOTHER PLACE ON THE SAME SHELF AS THAT PAST MASTER COMMONWEALTH EDISON COMPANY SAID IT ASKED STATE REGULATORS FOR AN AVERAGE EIGHT PERCENT OR FOUR HUNDRED SIXTY POINT THREE MILLION DOLLARS RATE INCREASE THE CHICAGO UTILITY SAID THAT IF IT IS APPROVED THE RATE HIKE WOULD LIKELY BECOME EFFECTIVE IN NINETEEN NINETY FIVE BECAUSE THE ILLINOIS COMMERCE COMMISSION CAN TAKE AS LONG AS ELEVEN MONTHS TO RENDER A DECISION EDISON CONTENDS THAT IT MUST HAVE HIGHER RATES IF IT IS QUOTE TO REMAIN FINANCIALLY VIABLE QUOTE ITS FINANCIAL STRENGTH HAS BEEN COMPROMISED IN RECENT YEARS IT SAID BECAUSE WE HAVE NOT RECEIVED A RATE INCREASE SINCE NINETEEN EIGHTY FIVE THAT WAS NOT LATER REFUNDED EXCEPT FOR A TWO POINT SEVEN PERCENT INCREASE IN NINETEEN NINETY ONE EDISON SAID ITS REQUEST SEEKS CLEARANCE TO INCREASE RATES TO RESIDENTIAL CUSTOMERS BY THREE POINT SIX PERCENTAGE POINTS MORE THAN THE BOOST PROPOSED FOR LARGE COMMERCIAL AND INDUSTRIAL CUSTOMERS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COMMONWEALTH EDISON CLOSED AT TWENTY SIX POINT THREE SEVEN FIVE DOLLARS DOWN SEVENTY FIVE CENTS CAUTIOUS COMMENTS BY INFLUENTIAL LEHMAN BROTHERS INCORPORATED ANALYST ELAINE GARZARELLI COMBINED WITH WEAK BONDS AND SELL PROGRAMS TO DRIVE STOCK PRICES BROADLY LOWER THE DOW JONES INDUSTRIAL AVERAGE CLOSED NEAR ITS SESSION LOW OF THREE THOUSAND EIGHT HUNDRED NINETY FIVE POINT THREE FOUR BELOW THE PSYCHOLOGICALLY IMPORTANT THREE THOUSAND NINE HUNDRED LEVEL THE LOSS REPRESENTS A THIRTY SIX POINT FIVE EIGHT POINT OR ZERO POINT NINE THREE PERCENT SLIDE WHILE STOCKS GYRATED ALL SESSION LONG THE DOW INDUSTRIALS TOOK AN INITIAL TWENTY FIVE POINT NOSEDIVE AROUND NOON AFTER MS. GARZARELLI REPEATED HER VIEW ON CABLE TELEVISION NETWORK C. N. B. C. THAT A FOUR PERCENT TO SEVEN PERCENT MARKET CORRECTION IS POSSIBLE A SPOKESWOMAN IN MS. GARZARELLI'S OFFICE SAID THE ANALYST HASN'T CHANGED HER BULLISH STANCE SHE SAID MS. GARZARELLI HAS STATED THAT A CORRECTION OF THAT SIZE WOULD BE QUOTE NORMAL QUOTE FOR THE MARKET A LARGER CORRECTION OF TEN PERCENT OR MORE THE SPOKESWOMAN SAID WOULDN'T HAPPEN UNLESS THE FEDERAL RESERVE TIGHTENED CREDIT CONDITIONS AT LEAST ONCE OR TWICE MORE IN MS. GARZARELLI'S VIEW WEAK BOND PRICES ALSO HURT EQUITIES THE TREASURY'S LONG BOND FELL ONE HALF POINT PUSHING ITS YIELD UP TO SIX POINT FOUR FOUR PERCENT AFTER THE THIRTY YEAR BOND AUCTION BROADER INDEXES ALSO FELL YESTERDAY THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX FELL THREE POINT EIGHT FOUR OR ZERO POINT EIGHT ONE PERCENT TO FOUR HUNDRED SIXTY EIGHT POINT NINE THREE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLID ONE POINT EIGHT SIX OR ZERO POINT SEVEN ONE PERCENT TO TWO HUNDRED SIXTY ONE POINT OH FOUR BIG BOARD DECLINERS TRAMPLED ADVANCERS ONE THOUSAND THREE HUNDRED ELEVEN TO EIGHT HUNDRED ELEVEN VOLUME TOTALED THREE HUNDRED TWENTY FIVE MILLION SEVEN HUNDRED FIFTY FIVE THOUSAND SHARES COMPARED WITH THREE HUNDRED THIRTY TWO MILLION FIVE HUNDRED NINETY SEVEN THOUSAND WEDNESDAY THE AVERAGE PRICE PER SHARE FELL TWENTY FIVE CENTS THE NASDAQ COMPOSITE INDEX SLIPPED THREE POINT ONE ONE OR ZERO POINT FOUR ZERO PERCENT TO SEVEN HUNDRED EIGHTY THREE POINT FOUR TWO THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL ONE POINT FOUR SIX TO FOUR HUNDRED SEVENTY NINE POINT ONE THREE AMONG CYCLICALS THE BIG THREE AUTO MAKERS LED THE MARCH DOWNWARD GENERAL MOTORS LOST ONE AND THREE QUARTERS TO SIXTY TWO AND ONE HALF ALTHOUGH IT REPORTED A FOURTH QUARTER PROFIT OF ONE DOLLAR AND TWENTY EIGHT CENTS A SHARE ANALYSTS SAID INVESTORS WERE CONCERNED ABOUT THE FAILURE OF G. M.'S EARNINGS TO SURPASS EXPECTATIONS CHRYSLER FELL ONE AND FIVE EIGHTHS TO FIFTY NINE AND THREE QUARTERS AND FORD MOTOR SLID TWO AND ONE HALF TO SIXTY SIX OTHER ECONOMICALLY SENSITIVE STOCKS ALSO FELL CATERPILLAR INCORPORATED DECLINED TWO AND THREE QUARTERS TO ONE HUNDRED SIX AND ONE EIGHTH GENERAL ELECTRIC LOST ONE AND THREE QUARTERS TO ONE HUNDRED SIX AND ONE HALF AND PHILIP MORRIS FELL ONE AND THREE EIGHTHS TO FIFTY SEVEN AND THREE QUARTERS MERGER NEWS CARRIED SOME STOCKS HIGHER ELECTRONIC ARTS NASDAQ A SAN MATEO CALIFORNIA INTERACTIVE ENTERTAINMENT SOFTWARE CONCERN JUMPED THREE AND ONE HALF TO TWENTY NINE THE COMPANY WILL ACQUIRE BRODERBUND SOFTWARE NASDAQ IN A STOCK SWAP VALUED AT ABOUT FOUR HUNDRED MILLION DOLLARS BRODERBUND NOVATO CALIFORNIA SURGED FOUR AND FIVE EIGHTHS TO FORTY FIVE AND SEVEN EIGHTHS COLUMBIA HEALTHCARE LOUISVILLE KENTUCKY GAINED TWO AND SEVEN EIGHTHS TO FORTY AND ONE HALF AND H. C. A. HOSPITAL CORPORATION OF AMERICA NASHVILLE TENNESSEE ROSE TWO AND THREE QUARTERS TO FORTY TWO AND THREE EIGHTHS THE COMPANIES SAID THEY HAVE COMPLETED THEIR MERGER COLUMBIA HEALTHCARE LED THE BIG BOARD'S MOST ACTIVE LIST WITH NINE POINT FOUR MILLION SHARES TRADED UP FROM AVERAGE DAILY VOLUME OF NINE HUNDRED FIVE THOUSAND EIGHT HUNDRED IN EARNINGS NEWS CAPITAL HOLDING SLID TWO AND FIVE EIGHTHS TO THIRTY TWO AND ONE HALF AFTER THE LOUISVILLE KENTUCKY INSURER SAID ITS FOURTH QUARTER OPERATING NET INCOME OF NINETY CENTS A SHARE WAS BELOW EARNINGS OF NINETY FIVE CENTS EXPECTED BY ANALYSTS KEMPER SECURITIES INCORPORATED CUT ITS RATING ON CAPITAL HOLDING TO HOLD FROM LONG TERM BUY CITING THE DISAPPOINTING RESULTS BRITISH PETROLEUM AMERICAN DEPOSITARY SHARES DROPPED ONE AND ONE HALF TO SIXTY SIX AND THREE QUARTERS THE COMPANY SAID ITS FOURTH QUARTER REPLACEMENT COST BASIS PROFIT FELL TO FIFTY FOUR MILLION POUNDS SEVENTY EIGHT POINT NINE MILLION DOLLARS AFTER A TWO HUNDRED SIXTY ONE MILLION POUND CHARGE A YEAR EARLIER BRITISH PETROLEUM HAD A REPLACEMENT COST BASIS PROFIT OF ONE HUNDRED NINETY THREE MILLION POUNDS AMERICAN DEPOSITARY RECEIPTS OF L. M. ERICSSON NASDAQ FELL TWO AND THREE QUARTERS TO FORTY TWO AND THREE EIGHTHS ALTHOUGH THE SWEDISH TELECOMMUNICATIONS COMPANY POSTED A NINETEEN NINETY THREE PRETAX PROFIT THAT MORE THAN DOUBLED TO THREE POINT ONE BILLION KRONOR THREE HUNDRED EIGHTY SIX POINT NINE MILLION DOLLARS FROM ONE POINT THREE ONE BILLION KRONOR IN NINETEEN NINETY TWO C. M. L. GROUP ACTON MASSACHUSETTS ADDED ONE AND THREE QUARTERS TO NINETEEN AND ONE HALF IN HEAVY TRADING ON EXPECTATIONS THAT ITS FISCAL SECOND QUARTER RESULTS WILL EXCEED ORIGINAL FORECASTS ANALYSTS SAID GTECH HOLDINGS A WEST GREENWICH R. I. ON LINE LOTTERY NETWORKS FIRM JUMPED THREE AND ONE QUARTER TO THIRTY TWO AND ONE QUARTER THE COMPANY SAID ITS GTECH ADMINISTRATIVE SERVICES SUBSIDIARY SIGNED A CONTRACT VALUED AT MORE THAN TWO HUNDRED MILLION DOLLARS OVER SEVEN YEARS WITH THE TEXAS DEPARTMENT OF HUMAN SERVICES TO PROVIDE A SYSTEM FOR THE ELECTRONIC TRANSFER OF FOOD STAMP PROGRAM BENEFITS AND BENEFITS UNDER THE AID TO FAMILIES WITH DEPENDENT CHILDREN PROGRAM SOME TRADERS SAID THAT IN ADDITION TO LATE SELL PROGRAMS WHICH BROUGHT THE DOW INDUSTRIALS BROADLY LOWER RIGHT BEFORE THE CLOSE STOCK PRICES ALSO MIGHT HAVE FALLEN ON A RUMOR OF TRADING LOSSES AT A MAJOR WALL STREET FIRM YESTERDAY'S SESSION WAS INDICATIVE OF THE NERVOUSNESS OUT THERE SAID EDWARD E. COLLINS THE THIRD EXECUTIVE VICE PRESIDENT OF INSTITUTIONAL TRADING AT DAIWA SECURITIES AMERICA WE HAD THE BIGGEST BULL ON WALL STREET TALKING ABOUT A CORRECTION HE SAID REFERRING TO MS. GARZARELLI THE PROGRAMS EXACERBATED EVERYTHING OTHERS ADDED THAT INVESTORS ARE SKITTISH ABOUT TODAY'S RELEASE OF JANUARY PRODUCER PRICES WE'RE IN A VERY TWITCHY MOOD HERE SAID CUMMINS CATHERWOOD MANAGING DIRECTOR AT RUTHERFORD BROWN AND CATHERWOOD QUOTE THERE'S AN ASTOUNDING HERD MENTALITY HERE AND WHEN THEY GET STARTED IT'S HARD TO TURN THAT HERD QUOTE DOUG KASS HEAD OF RESEARCH AT JW CHARLES SECURITIES INCORPORATED SAID THE UNDERLYING STORY YESTERDAY WAS THE CONTINUING SICKLY PERFORMANCE OF THE UTILITY INDEX THE DOW JONES UTILITY AVERAGE FELL THREE POINT FIVE SIX TO TWO HUNDRED FIFTEEN POINT FOUR OH THE DECLINE IN THE UTILITY AVERAGE TENDS TO PRESAGE MARKET DECLINES MR. KASS SAID THE DETERIORATION IN THAT AVERAGE IS GROWING MORE AND MORE CONSPICUOUS AND MORE AND MORE OMINOUS IT COULD BE THE DEATH KNELL FOR THE MARKET THE TELEVISION NETWORKS THINK THEY'VE FOUND A WAY TO HOLD ONTO VIEWERS TREAT SHOWS LIKE PACKAGED GOODS AND BOMBARD CONSUMERS WITH PROMOTIONAL ANNOUNCEMENTS FOR THEM ADVERTISERS HOWEVER DON'T LIKE THE COMPANY NON PROGRAMMING CLUTTER IS ON THE RISE AND THE CULPRITS ARE THE BROADCAST AND CABLE NETWORKS THEMSELVES THEY'RE JAMMING EVERY POSSIBLE MOMENT WITH PROMOTIONS FOR THEIR SHOWS SAYS A NEW STUDY PAID FOR BY THE ASSOCIATION OF NATIONAL ADVERTISERS AND THE AMERICAN ASSOCIATION OF ADVERTISING AGENCIES MOREOVER MATT MILLER DIRECTOR OF MEMBER SERVICES OF THE ANA SAYS THE NETWORKS AREN'T DECREASING THE NUMBER OF COMMERCIALS TO MAKE WAY FOR MORE PROMOTIONAL ANNOUNCEMENTS INSTEAD HE SAYS THE SHOWS THEMSELVES ARE GROWING SLIGHTLY SHORTER THE STUDY CONDUCTED BY COMPETITIVE MEDIA REPORTING AND MEDIA WATCH SHOWS THAT EACH BROADCAST NETWORK CLOCKED IN WITH AN INCREASE IN COMMERCIALS AND PROMOTIONS IN ONE WEEK STUDIED LAST NOVEMBER COMPARED WITH THE CORRESPONDING WEEK IN NOVEMBER NINETEEN NINETY TWO ONLY FOX A UNIT OF NEWS CORPORATION HAD FEWER PROMOTIONS NOVEMBER IS ONE OF FOUR SO CALLED SWEEPS MONTHS WHEN LOCAL AD RATES ARE DETERMINED THROUGH A. C. NIELSEN RATINGS WHILE COMMERCIAL CLUTTER IS ANNOYING TO THE CASUAL COUCH POTATO IT IS PARTICULARLY IRKSOME TO MADISON AVENUE ADVERTISERS PAY ON AVERAGE ONE HUNDRED TEN THOUSAND DOLLARS FOR A HALF MINUTE SPOT DURING THE NINETEEN NINETY THREE TO NINETY FOUR PRIME TIME SEASON THUS AD EXECUTIVES REGISTER DISPLEASURE WITH ANYTHING THAT MAY LESSEN THE IMPACT OF THEIR OWN EXPENSIVE MESSAGES THE CLUTTER ISSUE IS A REAL DILEMMA ON ONE HAND NETWORKS SAY THEY MUST INCREASE COMMERCIAL INVENTORY OR RAISE ALREADY STEEP RATES ON THE OTHER HAND ADVERTISERS FEEL THAT TOO MANY PROGRAMMING INVASIONS OCCUR NOW QUOTE THE MORE COMMERCIALS THAT ARE HITTING THE CONSUMER'S BRAIN AND EYES THE LESS EFFECTIVE THE ADVERTISING IS QUOTE SAYS JON MANDEL SENIOR VICE PRESIDENT AT GREY ADVERTISING WE BEAT UP THE NETWORKS AND SAY PLEASE DON'T RUN SO MANY PROMOTIONS IT'S NOT HOW LONG THE PROMOS ARE EITHER IT'S THE QUANTITY ADDS STEVE GRUBBS A SENIOR VICE PRESIDENT AT OMNICOM GROUP'S B. B. D. O. THE NETWORKS ARE EATING THEIR YOUNG THEY'RE TURNING OFF VIEWERS AND THAT ISN'T IN ANYONE'S INTEREST HOW BAD HAS IT BECOME THIS WEEK FOR EXAMPLE W. N. Y. W. THE FOX OWNED STATION IN NEW YORK SHRANK THE CLOSING CREDITS DURING MELROSE PLACE SO THAT HALF THE SCREEN COULD BE OCCUPIED BY THE ANCHORMAN OF THE LOCAL NEWS TO PROMOTE THE UPCOMING NEWSCAST THEN A SECOND PROMOTION FOR FOX'S HIT QUOTE MARRIED WITH CHILDREN APPEARED IN THE LOWER RIGHTHAND CORNER OF THE SCREEN SHOWING THE MELROSE PLACE CREDITS THE INCREASING NUMBER OF PROMOS IS TROUBLING ESPECIALLY SINCE THE NETWORKS CAN CONTROL THAT FATE SAYS BETSY FRANK A SENIOR VICE PRESIDENT OF SAATCHI AND SAATCHI ADVERTISING C. B. S. THE NUMBER ONE NETWORK IN HOUSEHOLD PRIME TIME RATINGS OBVIOUSLY FEELS IT HAS A LOT TO PROMOTE INCLUDING ITS RELATIVELY NEW LATE SHOW WITH DAVID LETTERMAN DURING ONE HOUR IN PRIME TIME LAST NOVEMBER C. B. S. RAN THIRTEEN MINUTES AND FIFTY THREE SECONDS OF SO CALLED NON PROGRAMMING MATERIAL OF WHICH FOUR MINUTES AND TWO SECONDS WERE PROMOTIONAL ANNOUNCEMENTS AND CREDITS THE BALANCE OF THE TIME WENT TO PAID ADVERTISING AND PUBLIC SERVICE ANNOUNCEMENTS THAT COMPARES WITH NOVEMBER NINETEEN NINETY TWO WHEN THE NETWORK BROADCAST THIRTEEN MINUTES AND TWENTY FOUR SECONDS OF NON PROGRAMMING MATERIAL THREE MINUTES AND THIRTY SEVEN SECONDS OF WHICH WERE PROMOS CAPITAL CITIES SLASH A. B. C. RAN FOUR MINUTES AND TWO SECONDS OF PROMOTIONAL ANNOUNCEMENTS IN A ONE HOUR PERIOD THAT INCLUDED THIRTEEN MINUTES AND TWENTY FOUR SECONDS OF NON PROGRAMMING MATERIAL GENERAL ELECTRIC'S N. B. C. NETWORK BROADCAST THREE MINUTES AND FORTY FOUR SECONDS OF ITS OWN PROMOTIONAL ANNOUNCEMENTS DURING AN HOUR OF THIRTEEN MINUTES AND FORTY THREE SECONDS OF NON PROGRAMMING MATERIAL AN A. B. C. SPOKESMAN WHO SAID THE NETWORK HAS BEEN UNDER THE SAME INTERNAL GUIDELINES FOR THE PAST EIGHTEEN MONTHS DECLINED FURTHER COMMENT A C. B. S. SPOKESWOMAN SAID THE NETWORK'S EXECUTIVES WERE TRAVELING YESTERDAY TO THE WINTER OLYMPICS AND COULDN'T BE REACHED FOR COMMENT A SPOKESWOMAN AT N. B. C. SAID THE NETWORK SOMETIMES RECEIVES SHORT SHOWS FROM THE STUDIOS AND THE FIRST THING WE REACH FOR TO FILL THE TIME IS A NETWORK PROMO FOX COULDN'T BE REACHED FOR COMMENT MR. MILLER SAYS ONE STARTLING EXAMPLE WAS C. B. S. WHICH STRETCHED THE LENGTH BETWEEN PRIME TIME SHOWS TO A NUMBING SIX MINUTES ONE EVENING ONCE CREDITS ADS AND PROMOTIONAL ANNOUNCEMENTS CONCLUDED SOME CLOSING CREDITS OF SERIES WEREN'T LUMPED INTO THE DUBIOUS CATEGORY OF NONPROGRAMMING SHOWS SUCH AS HOME IMPROVEMENT ON A. B. C. AND N. B. C.'S EMPTY NEST AND NURSES ACTUALLY CONTINUE THE SHOW OR INCLUDE OUTTAKES INTO THE CREDITS QUOTE WE REWARDED THOSE SITUATIONS QUOTE SAYS MR. MILLER ANYTHING THAT KEEPS THE VIEWER INTERESTED AND KEEPS THE INDIVIDUAL FROM CHANNEL SURFING ISN'T CONSIDERED CLUTTER MADISON AVENUE HAS GROWN INCREASINGLY CONCERNED OVER THE EASE AT WHICH VIEWERS CAN TUNE OUT ONCE A COMMERCIAL POPS UP MANY VIEWERS ARMED WITH REMOTE CONTROL CAN EASILY ZAP THROUGH INTRUSIVE ADS AND ANNOUNCEMENTS AND THERE ARE MORE PROGRAMMING ALTERNATIVES THAN EVER INCLUDING VIDEOCASSETTES AND CABLE CABLE HOWEVER IS NO LONGER A HAVEN FOR THE WEARY IN FACT OF SIXTEEN CABLE NETWORKS REVIEWED BY THE STUDY ALL AIRED MORE NON PROGRAMMING UNITS THAN ANY BROADCAST NETWORK AND MOST OF IT WAS PRODUCT ADVERTISING E. S. P. N. THE ALL SPORTS NETWORK WAS THE LOWEST WITH THIRTEEN MINUTES TWENTY EIGHT SECONDS FOUR SECONDS MORE THAN A. B. C. THE AMOUNTS STEADILY INCREASE THROUGH M. T. V. FOURTEEN MINUTES THIRTY TWO SECONDS C. N. B. C. FIFTEEN MINUTES FIVE SECONDS TO THE MOST CLUTTERED NETWORK DISCOVERY SEVENTEEN MINUTES TWENTY SECONDS DAYTIME CONTINUES TO BE THE MOST CLUTTERED PERIOD ON BROADCAST TELEVISION WITH C. B. S. LEADING THE CHARGE THE NETWORK HAD NINETEEN MINUTES TWENTY SIX SECONDS OF ADS AND PROMOTIONAL ANNOUNCEMENTS COMPARED WITH EIGHTEEN MINUTES THIRTY FOUR SECONDS ON A. B. C. AND EIGHTEEN MINUTES TWELVE SECONDS ON N. B. C. FOX DOESN'T AIR PROGRAMS DURING THE DAY MR. MILLER SAYS THE ANA PLANS TO CONTACT THE BROADCAST AND CABLE NETWORKS TO TRY AND TALK WITH THEM ABOUT THE CLUTTER SITUATION BUT HE ADDS IT ISN'T EASY TO TALK TO THEM ADVERTISERS STILL LINE UP WITH MONEY TO BUY TIME ON THE SHOWS EGGLAND'S BEST SETTLED DECEPTIVE ADVERTISING CHARGES BY AGREEING TO STOP MAKING CLAIMS THAT ITS EGGS ARE SUPERIOR TO OTHER EGGS BECAUSE THEY DON'T RAISE CONSUMERS' BLOOD CHOLESTEROL LEVELS THE FEDERAL TRADE COMMISSION HAD CHARGED EGGLAND'S BASED IN KING OF PRUSSIA PENNSYLVANIA WITH FALSELY CLAIMING THAT STUDIES PROVED CONSUMERS FOLLOWING A LOW FAT DIET COULD ALSO EAT TWELVE EGGLAND'S EGGS PER WEEK WITHOUT INCREASING THEIR CHOLESTEROL LEVELS THE F. T. C. CITED ADS CREATED BY THE AYER AD AGENCY IN NEW YORK THAT SAID EGGLAND'S EGGS WON'T INCREASE YOUR SERUM CHOLESTEROL ANOTHER AD CLAIMED QUOTE IN CLINICAL TESTS IN A LOW FAT DIET EVEN TWELVE A WEEK CAUSED NO INCREASE IN SERUM CHOLESTEROL QUOTE ROBERT FUHRMAN EGGLAND'S PRESIDENT SAID THE ADS STATE THAT EGGLAND'S EGGS HAVE ABOUT THE SAME AMOUNT OF CHOLESTEROL AS OTHER EGGS EVEN THOUGH THEY HAVE A DIFFERENT EFFECT ON BLOOD CHOLESTEROL LEVELS IF WE SAY PEOPLE CAN EAT THE EGGS AND THEY WON'T RAISE THEIR CHOLESTEROL SOME OF THEM JUMP TO THE CONCLUSION THAT THESE ARE LOWER CHOLESTEROL EGGS HE SAID THE COMPANY PLANS TO CONTINUE REFERRING TO THE CHOLESTEROL STUDIES IN ITS ADS MR. FUHRMAN SAID THOSE STUDIES COMPARED PEOPLE ON A LOW FAT DIET WHO EITHER ATE EGGLAND'S EGGS OR ATE NO EGGS AT ALL UNDER THE SETTLEMENT HOWEVER EGGLAND'S MUST DISCLOSE IN ADS THE CHOLESTEROL CONTENT OF ITS EGGS AND STATE IT AS A PERCENTAGE OF THE MAXIMUM DAILY AMOUNT RECOMMENDED BY THE FOOD AND DRUG ADMINISTRATION THE COMPANY ALSO HAS AGREED TO PUT A DISCLAIMER ON PACKAGES THERE ARE NO STUDIES SHOWING THAT THESE EGGS ARE DIFFERENT FROM OTHER EGGS IN THEIR EFFECT ON SERUM CHOLESTEROL THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST A WASHINGTON CONSUMER ADVOCACY GROUP SAID THE SETTLEMENT DOESN'T GO FAR ENOUGH BECAUSE THE F. T. C. DIDN'T APPLY THE SAME STANDARDS ADOPTED BY THE F. D. A. FOR HEALTH CLAIMS ON FOOD LABELS MIDOL AYER NEW YORK WHICH LOST STERLING WINTHROP'S BIG BAYER ASPIRIN ACCOUNT LAST WEEK LOST THE LAST OF THAT CLIENT'S BUSINESS STERLING MOVED THE ESTIMATED FOUR MILLION DOLLARS MIDOL MENSTRUAL PAIN RELIEVER ACCOUNT TO AMMIRATI AND PURIS NEW YORK AMMIRATI ALREADY HANDLES THE PHILLIPS' LAXATIVE ACCOUNT STERLING IS A UNIT OF EASTMAN KODAK COMPANY REVIEW LENOX INCORPORATED THE CHINA AND CRYSTAL UNIT OF BROWN FORMAN CORPORATION SAID IT HAS STARTED A REVIEW OF ITS AD ACCOUNT BILLINGS COULDN'T BE DETERMINED LENOX'S CURRENT AGENCY FOOTE CONE AND BELDING COMMUNICATIONS' F. C. B. SLASH LEBER KATZ PARTNERS WON'T PARTICIPATE THE CLIENT SAID KEDS STRIDE RITE CORPORATION SAID IT INVITED SIX AGENCIES TO PITCH ITS TWENTY MILLION DOLLAR ACCOUNT INCLUDING TWO BOSTON SHOPS HILL HOLLIDAY CONNORS COSMOPULOS AND ARNOLD FORTUNA LAWNER AND CABOT AND FOUR NEW YORK AGENCIES OMNICOM GROUP'S B. B. D. O. D'ARCY MASIUS BENTON AND BOWLES KIRSHENBAUM AND BOND AND W. P. P. GROUP'S OGILVY AND MATHER A DECISION IS EXPECTED IN MARCH NINTENDO OF AMERICA INCORPORATED BETTING ITS CHIPS ON MICROCHIPS SAID ITS NEXT GENERATION VIDEO GAME MACHINE WILL CONTINUE TO BE BASED ON CARTRIDGE PLAY RATHER THAN C. D. ROM THE SIXTY FOUR BIT GAME SYSTEM CODE NAMED PROJECT REALITY IS BEING DEVELOPED BY NINTENDO THE U. S. UNIT OF JAPAN'S NINTENDO COMPANY AND SILICON GRAPHICS INCORPORATED MOUNTAIN VIEW CALIFORNIA IT IS SET TO MAKE ITS DEBUT IN ARCADES DURING THE FOURTH QUARTER FOLLOWED BY A WORLD WIDE LAUNCH TO HOMES NEXT YEAR NINTENDO SAID THE HOME MACHINES WOULD BE BROUGHT TO MARKET FOR UNDER TWO HUNDRED FIFTY DOLLARS PROJECT REALITY WILL SUCCEED NINTENDO'S CURRENT MAINSTAY PLAYER A SIXTEEN BIT MACHINE CALLED THE SUPER NINTENDO ENTERTAINMENT SYSTEM PROJECT REALITY WILL BE POWERED BY SILICON GRAPHICS' SPEEDY M. I. P. S. MICROPROCESSOR PROVIDING FIVE TO SIX TIMES THE MEMORY OF THE CURRENT SIXTEEN BIT NINTENDO GAMES AND ALLOWING FOR SUPERIOR GRAPHICS SOUND AND MUSIC SILICON GRAPHICS' OFFICIALS SAID THEIR M. I. P. S. CHIP IS SO FAST AT ACCESSING DATA THAT GAME IMAGES WILL APPEAR INSTANTLY RATHER THAN AT THE SLIGHT DELAY ASSOCIATED WITH C. D. ROMS COMPACT DISK READ ONLY MEMORY MARK HANNAH SILICON GRAPHIC'S CHIEF SCIENTIST SAID THE M. I. P. S. CHIP WOULD ALSO ENABLE PROJECT REALITY MACHINES TO RUN VIDEO AT FULL MOTION ON THE TELEVISION SCREEN RATHER THAN IN THE JERKY IMAGES NOW PREVALENT ON WEAKER SYSTEMS NINTENDO HOPES PROJECT REALITY WILL HELP IT RECAPTURE MARKET SHARE FROM ARCHRIVAL SEGA OF AMERICA INCORPORATED A UNIT OF JAPAN'S SEGA ENTERPRISES LIMITED WHICH HAS MADE HUGE INROADS INTO NINTENDO'S ONCE DOMINANT HOLD ON THE SIX BILLION DOLLAR A YEAR U. S. VIDEO GAME MARKET BUT ANALYSTS SAY NINTENDO ISN'T LIKELY TO REGAIN THE DOMINANCE IT HELD IN THE LATE NINETEEN EIGHTIES WHEN COMPETITION WAS SCARCE BESIDES SEGA WHICH IS WORKING WITH HITACHI LIMITED TO DEVELOP A NEW VERSION OF THE SEGA GENESIS PLAYER NINTENDO FACES COMPETITION FROM SMALLER RIVALS INCLUDING THREE D. O. COMPANY AND ATARI CORPORATION BOOSTED BY SALES OF ITS COMPUTER NETWORKING PRODUCTS CISCO SYSTEMS INCORPORATED SAID ITS NET INCOME NEARLY DOUBLED FOR ITS FISCAL SECOND QUARTER FOR THE QUARTER ENDED JANUARY THIRTIETH CISCO MENLO PARK CALIFORNIA POSTED NET INCOME OF SEVENTY SEVEN POINT FIVE MILLION DOLLARS OR TWENTY NINE CENTS A SHARE COMPARED WITH YEAR EARLIER NET OF THIRTY EIGHT POINT SEVEN MILLION DOLLARS OR FIFTEEN CENTS A SHARE THE PER SHARE FIGURES REFLECT A TWO FOR ONE STOCK SPLIT EFFECTIVE MARCH FOURTH SALES IN THE QUARTER MORE THAN DOUBLED TO THREE HUNDRED TWO MILLION DOLLARS COMPARED WITH ONE HUNDRED FORTY FIVE MILLION DOLLARS A YEAR EARLIER FOR THE SIX MONTHS CISCO EARNED ONE HUNDRED FORTY ONE MILLION DOLLARS OR FIFTY THREE CENTS A SHARE COMPARED WITH YEAR EARLIER NET OF SEVENTY TWO MILLION DOLLARS OR TWENTY EIGHT CENTS A SHARE SALES INCREASED TO FIVE HUNDRED FIFTY POINT SIX MILLION DOLLARS COMPARED WITH TWO HUNDRED SEVENTY ONE POINT FIVE MILLION DOLLARS A YEAR AGO ON THE SAME DAY HE WAS ACCUSING CRITICS OF HIS HEALTH CARE PLAN OF QUOTE PROPAGANDA QUOTE PRESIDENT CLINTON WAS ALSO QUOTED IN YESTERDAY'S NEWS HEAPING OBLOQUY ON CRITICS OF DEVAL PATRICK HIS NOMINEE FOR JUSTICE'S CIVIL RIGHTS POST MR. CLINTON SAYS THE CRITICS NEVER BELIEVED IN THE CIVIL RIGHTS LAWS THEY NEVER BELIEVED IN EQUAL OPPORTUNITY THEY NEVER LIFTED A FINGER TO GIVE ANYBODY OF A MINORITY RACE A CHANCE IN THIS COUNTRY THIS IS A VERY ENCOURAGING PERFORMANCE IT SUGGESTS THAT MR. CLINTON HAS DECIDED IT IS TIME TO PERSONALLY STAND BY HIS NOMINEES BEHOLD A MIRACLE SAID DIOGENES THE CYNIC AN HONEST MAN BILL CLINTON'S WASHINGTON HAS JUST PRODUCED ITS OWN MIRACLE AN HONEST LIBERAL TWO OF THEM IN FACT AND FROM CONGRESS NO LESS THEY DESERVE PRAISE FOR TELLING TRUTHS THAT THE LIBERALS WHO OCCUPY THE WHITE HOUSE WON'T DARE UTTER THE FIRST BLAST OF CANDOR CAME FROM ROBERT REISCHAUER WHO RUNS THE CONGRESSIONAL BUDGET OFFICE THIS WEEK HE CALLED THE CLINTON HEALTH CARE PLAN QUOTE AN EXERCISE OF SOVEREIGN POWER QUOTE THUS CONFIRMING THE ARGUMENTS OF CRITICS WHO CALL IT A VAST FEDERAL INTRUSION INTO AMERICAN MEDICINE MR. REISCHAUER THEN EXPOSED MORE OF THE EMPRESS'S NEW CLOTHES BY SAYING THAT WHAT THE WHITE HOUSE CALLS PRIVATE HEALTH PREMIUMS WOULD REALLY BE GOVERNMENTAL RECEIPTS WHICH IS WHAT NORMAL FOLKS CALL TAXES THE WHITE HOUSE TRIED TO DISSUADE MR. REISCHAUER FROM TAKING THIS LINE THEN SPUN ITS TYPICALLY NIMBLE ONE HUNDRED EIGHTY TURN TO SAY IT DIDN'T MATTER THAT'S A WASHINGTON POLICY WONK DEAL SAID PRESIDENT CLINTON THE MAN FOR WHOM THE WORD WONK WAS POPULARIZED THE PRESIDENT MIGHT HAVE BEEN MORE BELIEVABLE IF HE'D HEEDED REPRESENTATIVE JIM MCDERMOTT A SEATTLE DEMOCRAT AND THE OTHER HONEST LIBERAL ABOUT MR. REISCHAUER'S REMARKS REPRESENTATIVE MCDERMOTT SAYS I THINK THIS GIVES US A CHANCE TO MAKE THE DEBATE A WHOLE LOT MORE HONEST AND STRAIGHTFORWARD DOCTOR MCDERMOTT IS THE LEAD SPONSOR IN THE HOUSE OF THE SINGLE PAYER HEALTH PLAN WHICH WOULD RESEMBLE CANADA'S GOVERNMENT RUN SYSTEM TWO WEEKS AGO HE PROPOSED TO PAY FOR THIS PLAN WITH IN PUBLIC NO LESS IN FULL VIEW OF VOTERS AN EIGHT POINT FOUR PERCENT PAYROLL TAX HE EVEN USED THE QUOTE T. WORD QUOTE MY STAFF WANTS ME TO USE THE WORD PREMIUM BUT I'M A PHYSICIAN I SAY TELL PEOPLE THE PROBLEM DOCTOR MCDERMOTT SAYS WHAT'S THE DIFFERENCE BETWEEN A PREMIUM AND A TAX THE ANSWER IS POLITICS THE ISSUE THAT THE PRESIDENT HAS BEEN STRUGGLING WITH IN HIS PROPOSAL IS HOW TO HIDE THE FACT THAT THERE'S ANY GOVERNMENT INVOLVED SAYS DOCTOR MCDERMOTT A PSYCHIATRIST WHY IS THAT MY VIEW IS THEY TOOK A POLL HE EXPLAINS AND FOUND WHAT I COULD HAVE TOLD THEM FOR A TWENTY FIVE CENT PHONE CALL THAT THE AMERICAN PEOPLE SAY THEY DON'T WANT TO PAY TAXES AND DON'T TRUST GOVERNMENT PROGRAMS HE ISN'T JUST GUESSING MR. CLINTON'S POLLSTER STAN GREENBERG TOLD AN AUDIENCE AT THE AMERICAN ENTERPRISE INSTITUTE IN DECEMBER THAT HIS POLLING HELPED BLOCK ANY PROPOSAL FOR A VALUE ADDED TAX UNDERSTANDABLY DOCTOR MCDERMOTT BLAMES RONALD REAGAN AND OTHER ANTIGOVERNMENT VILLAINS FOR THIS SENTIMENT BUT HIS ANSWER ISN'T TO DISSEMBLE OR DISGUISE IT IS TO PERSUADE QUOTE CLINTON WOULD HAVE DONE MUCH BETTER TO TAKE THE ISSUES OF TAXES AND GOVERNMENT HEAD ON QUOTE HE SAYS HE CAN EXPLAIN THAT THIS IS A PROBLEM GOVERNMENT CAN SOLVE HAILING FROM SEATTLE THE BERKELEY OF THE NORTHWEST DOCTOR MCDERMOTT CAN AFFORD TO BE THIS BLUNT FIDEL CASTRO WILL WIN IN HIS DISTRICT BEFORE A REPUBLICAN QUIPS SEATTLE TIMES COLUMNIST JOHN CARLSON BUT HIS CANDOR ALSO EXPOSES THE FOG OF EUPHEMISM WITH WHICH THE CLINTONS HAVE SHROUDED SO MUCH OF THEIR PRESIDENCY AND ESPECIALLY THEIR HEALTH PLAN IN CLINTONSPEAK PRICE CONTROLS ARE PREMIUM CAPS BUREAUCRACIES ARE ALLIANCES AND AN H. M. O. IS CHOICE FAR FROM ACKNOWLEDGING GOVERNMENT'S ROLE MR. CLINTON KEEPS INSISTING THAT HIS PLAN MERELY INVOLVES GUARANTEED PRIVATE INSURANCE MORE ORWELLIAN YET ANYONE WHO TRIES TO CHALLENGE THIS INTERPRETATION SUCH AS THE MANHATTAN INSTITUTE'S ELIZABETH MCCAUGHEY IS ACCUSED OF SPREADING LIES HILLARY RODHAM CLINTON IS SO DOGGED THAT SHE WON'T EVEN ADMIT WHAT'S IN HER OWN BILL SHE PRAISES THE FAMOUS MAYO CLINIC IN ROCHESTER MINNESOTA FOR EXAMPLE BUT MAYO'S PRESIDENT RECENTLY TOLD HER AT A MEETING WITH OTHER EXECUTIVES THAT HE COULDN'T SUPPORT HER REFORM HIS BOARD WOULDN'T ALLOW MAYO TO SPEND MORE ON RESEARCH IN A WORLD BOUND BY PRICE CONTROLS HE SAID POLITELY MRS. CLINTON REPLIED THAT HER BILL HAD NO SUCH CONTROLS WHEN ANOTHER EXECUTIVE SPOKE UP TO LIST THEM SHE CHANGED THE SUBJECT THE GROUP FINALLY SENT HER OFFICE A TWO PAGE SUMMARY OF THE PRICE CONTROLS IN THE BILL SHE HASN'T WRITTEN BACK JIM MCDERMOTT'S BILL IS CERTAINLY MORE QUOTE LEFT WING QUOTE THAN MRS. CLINTON'S THOUGH NOT NEARLY AS MUCH AS ADVERTISED BUT EVEN A RIGHT WINGER HAS TO ADMIT IT'S FAR MORE ADMIRABLE BECAUSE IT'S HONEST ABOUT ITS INTENTIONS DOCTOR MCDERMOTT THINKS HE CAN GET A MAJORITY OF TWO HUNDRED EIGHTEEN HOUSE VOTES FOR HIS BILL IF MR. CLINTON CARRIES SINGLE PAYER PRINCIPLES TO THE PUBLIC I SUSPECT HE'S WRONG WHICH MAY BE WHY HE HAS ONLY NINETY TWO CO SPONSORS BUT THAT IS WHAT A DEBATE IS SUPPOSED TO BE ABOUT PRINCIPLES THE CLINTONS KEEP SAYING AMERICANS MUST HAVE THE COURAGE TO CHANGE BUT WHY SHOULD ANYONE TAKE THAT RISK WHEN THE CLINTONS DON'T EVEN HAVE THE COURAGE TO BE CANDID ABOUT THE CHANGE THEY REALLY WANT IT WAS A STORY THAT HAD EVERYTHING DANGER COURAGE TRIUMPH OVER HEAVY ODDS AND A HEROINE OF SURPASSING MODESTY THE SCENE THAT FOLLOWED HAD SOMETHING FOR EVERYONE TOO THERE AT NEW YORK'S CITY HALL ON MONDAY STOOD OFFICER ARLENE BECKLES SURROUNDED BY FAMILY A FIANCE HAPPY POLICE BRASS AND A BEAMING MAYOR RUDOLPH GIULIANI THEY WERE ON HAND ALONG WITH LEGIONS OF CAMERAMEN AND REPORTERS TO WATCH NEW YORK'S NEW POLICE COMMISSIONER WILLIAM BRATTON AWARD OFFICER BECKLES A DETECTIVE SHIELD THE POLICEWOMAN'S PATH TO THAT SHIELD BEGAN WITH AN OFF DUTY VISIT TO A DOWNTOWN BROOKLYN BEAUTY PARLOR AS OFFICER BECKLES SAT UNDER THE HAIR DRYER AT THE SALON LA MODE LAST SATURDAY THREE ARMED THUGS ENTERED ANNOUNCED A ROBBERY AND BEGAN HERDING CUSTOMERS AND STAFF TOWARD THE BACK THE THIRTY YEAR OLD OFFICER JUMPED UP AND GOT HER OFF DUTY REVOLVER OUT FROM UNDER HER BEAUTY PARLOR SMOCK BY THE TIME THE ACTION WAS OVER SHE HAD PUMPED BULLETS FROM HER FIVE SHOT REVOLVER INTO ALL THREE ROBBERS TWO OF THE WOUNDED ROBBERS FLED ONLY TO BE CAPTURED LATER WHILE POLICE OFFICER BECKLES WITH A TRANSIT OFFICER WHO CAME IN TO HELP SUBDUED THE ONE WHO AROSE TO ATTACK HER AFTER SHE HAD SHOT HIM IN THE NOSE THERE CAN BE NO QUESTION ABOUT WHY OFFICER BECKLES'S PERFORMANCE IN THE LINE OF DUTY WON RAVES FOR AMONG OTHER THINGS PROTECTING THE FIFTEEN OR MORE ODD CUSTOMERS IN THE SALON IN ANOTHER DAY AND AGE THE LIKELIHOOD OF MANY LOST LIVES DURING A ROUTINE STORE HOLDUP WAS NOT SO GREAT WE LIVE HOWEVER IN THIS DAY AND AGE IN WHICH IT IS VERY NEARLY ROUTINE PROCEDURE FOR CRIMINALS TO KILL THEIR VICTIMS DURING A ROBBERY TO GET RID OF WITNESSES OFFICER BECKLES WHO WEIGHS IN AT ONE HUNDRED TEN POUNDS TOOK OUT THREE ARMED THUGS IN THE PRIME OF THEIR HOODLUM LIVES ONE OF WHOM WRESTLED HER TO THE GROUND QUOTE THE VALIANT ONLY TASTE OF DEATH BUT ONCE QUOTE SHAKESPEARE TELLS US BUT OFFICER BECKLES CAME CLOSE TO TASTING DEATH TWICE WHEN HER REVOLVER EMPTY ONE OF THE WOUNDED THUGS PUT HIS GUN TO HER HEAD HIS GUN FORTUNATELY MISFIRED BOTH TIMES NEW YORK'S NEW POLICE COMMISSIONER DIDN'T NEED OFFICER BECKLES'S CASE TO ENCOURAGE HIM IN THE DECISION MADE THE SAME WEEKEND TO INCREASE THE FIREPOWER OF THE CITY'S POLICE THE POLICE WILL BE GETTING FIFTEEN ROUND CLIPS FOR THEIR NEW NINE M. M. SEMI AUTOMATIC GUNS INSTEAD OF BEING LIMITED TO THE TEN ROUNDS PREVIOUSLY ALLOWED THEM YET SINCE SOME IN THE CITY STILL PROFESS TO WORRY THAT THE POLICE MIGHT BE TOO WELL ARMED IT DID NOT HURT TO HAVE BEFORE THEM THE CASE OF OFFICER BECKLES WITH AN EMPTY REVOLVER AND THOSE SHE'D ALREADY HIT STILL ATTACKING HER IT DIDN'T HURT EITHER FOR CITIZENS TO HAVE THIS CHANCE TO CELEBRATE ONE LONE LAW ENFORCER'S BIG WIN IN A TIME WHEN THE JUSTICE SYSTEM IS SO DERANGED THAT JUVENILE KILLERS GO UNPUNISHED WHEN LAWYERS ONLY HAVE TO ARGUE CHILD SEX ABUSE TO KEEP JURIES FROM CONVICTING MURDERERS EVERY SUCH WIN OVER SOCIETY'S ENEMIES IS BRACING AND IN NEW YORK WHERE RACIAL QUESTIONS ARE PARTICULARLY TENSE AS A WHITE MAYOR REPLACES A BLACK ONE IT CERTAINLY DID NOT HURT THAT THE CEREMONY AT CITY HALL BROUGHT TOGETHER A MAYOR WHO WON ON A LAW AND ORDER CAMPAIGN AND A BLACK WOMAN POLICE OFFICER WHO IS NOW HEROINE OF THE ENTIRE CITY A FITTING REMINDER THAT ALL OF US OWE A DEBT OF GRATITUDE TO ANYONE AS FAITHFUL TO THE CALL OF DUTY AS DETECTIVE BECKLES MARGARETTEN FINANCIAL CORPORATION A RESIDENTIAL MORTGAGE BANKER REPORTED LOAN PRODUCTION OF SEVEN HUNDRED FIVE MILLION DOLLARS FOR JANUARY A NINE POINT SIX PERCENT INCREASE FROM SIX HUNDRED FORTY THREE MILLION DOLLARS A YEAR EARLIER RETAIL CLOSINGS FOR THE MONTH INCREASED THIRTY SIX PERCENT TO FOUR HUNDRED THIRTY SIX MILLION DOLLARS FROM THREE HUNDRED TWENTY ONE MILLION DOLLARS WITH REFINANCINGS ACCOUNTING FOR FORTY SEVEN PERCENT OF THE VOLUME WHOLESALE PURCHASES ROSE NINETY THREE PERCENT TO ONE HUNDRED TWELVE MILLION DOLLARS FROM FIFTY EIGHT MILLION DOLLARS TERMS WEREN'T DISCLOSED CORNING SAID CERAMEM BASED IN WALTHAM MASSACHUSETTS IS ONE THIRD OWNED BY ENJAY INCORPORATED A UNIT OF EXXON CORPORATION THE REMAINING SHARES ARE HELD BY CERAMEM THE FEDERAL GOVERNMENT'S NATIONAL INSTITUTES OF HEALTH HAS DROPPED ITS CONTROVERSIAL ATTEMPT TO PATENT THOUSANDS OF FRAGMENTS OF UNIDENTIFIED GENES A MOVE SOME SCIENTISTS HAD PREVIOUSLY CRITICIZED AS BIOLOGY'S VERSION OF A QUOTE LAND GRAB QUOTE THE N. I. H. SAID THAT BY ENDING ITS THREE YEAR EFFORT TO PATENT GENE FRAGMENTS FOUND BY ONE OF ITS SCIENTISTS THE GOVERNMENT HOPED TO END AN INTERNATIONAL RUSH BY COMPANIES AND OTHER COUNTRIES TO FILE SIMILAR PATENT CLAIMS BUT AN OFFICIAL IN THE BIOTECHNOLOGY INDUSTRY SAID THE N. I. H. DECISION MAY BE TOO LATE TO STOP AN AVALANCHE OF PATENT APPLICATIONS BY INDUSTRY THAT WAS SET OFF BY THE INITIAL N. I. H. ACTION THE N. I. H. SAID IT WON'T APPEAL A RULING BY THE U. S. PATENT AND TRADE OFFICE IN NINETEEN NINETY TWO STATING THAT THE GENE FRAGMENTS COULDN'T BE PATENTED BECAUSE THE EXACT FUNCTIONS OF THE GENES WERE UNKNOWN THE N. I. H. HAD UNTIL LAST NIGHT TO APPEAL THE PATENT OFFICE DECISION AND MANY GENE RESEARCHERS EXPECTED IT TO PURSUE THE PATENT CLAIMS BUT HAROLD VARMUS THE NEW DIRECTOR OF THE N. I. H. SAID I DO NOT BELIEVE THAT PATENTING AT THIS STAGE PROMOTES TECHNOLOGY DEVELOPMENT AND IT MAY IMPEDE MORE IMPORTANT RESEARCH COLLABORATIONS HERE AND INTERNATIONALLY DOCTOR VARMUS'S ACTION REVERSED A DECISION BY HIS PREDECESSOR BERNADINE HEALY TO SEEK PATENTS FOR ABOUT SEVEN THOUSAND GENE FRAGMENTS THE FRAGMENTS WERE IDENTIFIED BY J. CRAIG VENTER USING A TECHNIQUE HE DEVELOPED TO PLUCK SMALL PIECES OF PREVIOUSLY UNKNOWN GENES OUT OF D. N. A. THE MOLECULE THAT CONTAINS ALL GENETIC INFORMATION DOCTOR HEALY SAID THE APPLICATIONS GAVE THE U. S. PROTECTION IN CASE OTHER COUNTRIES USED DOCTOR VENTER'S DISCOVERIES TO PURSUE THEIR OWN PATENTS BUT THE APPLICATIONS IGNITED WORLD WIDE PROTEST FROM GOVERNMENTS AND GENETICISTS INVOLVED IN THE INTERNATIONAL COLLABORATIVE EFFORT TO DECIPHER THE ENTIRE COLLECTION OF HUMAN GENES FRANCE AND BRITAIN AMONG OTHER NATIONS CALLED IT UNETHICAL TO PATENT GENES BEFORE KNOWING WHAT THEY ARE AND DEMONSTRATING A PRACTICAL USE FOR THEM EVEN SO BRITAIN'S EQUIVALENT OF THE N. I. H. ALSO FILED PATENT CLAIMS FOR THE GENE FRAGMENTS IN ORDER TO PROTECT ITS DISCOVERIES I THINK DOCTOR VARMUS'S DECISION IS A VERY SENSIBLE THING TO DO SAID JAMES WATSON CO WINNER OF THE NOBEL PRIZE FOR DISCOVERING THE STRUCTURE OF D. N. A. AS DIRECTOR OF THE GOVERNMENT'S HUMAN GENOME PROJECT DOCTOR WATSON PUBLICLY SQUABBLED WITH DOCTOR HEALY OVER THE PATENTS HE ARGUED THAT SEEKING OWNERSHIP OVER UNKNOWN GENES WOULD UNDERMINE EFFORTS TO GET GOVERNMENTS UNIVERSITIES AND COMPANIES TO WORK TOGETHER TO SEEK DISEASE CAUSING GENES THE DISPUTE LED DOCTOR WATSON TO RESIGN HIS GOVERNMENT POSITION EARLIER THAN PLANNED DOCTOR VENTER ALSO HAS SINCE LEFT THE N. I. H. HELPING FORM A NONPROFIT INSTITUTE AND PRIVATE COMPANY USING HIS TECHNIQUE TO SEEK OUT GENES NOTING THAT THE ISSUES SURROUNDING THE PATENTING OF GENETIC MATERIAL IS COMPLEX DOCTOR VENTER SAID YESTERDAY THAT HE RESPECTED DOCTOR VARMUS'S DECISION BUT OFFICIALS AT SEVERAL PHARMACEUTICAL AND BIOTECH COMPANIES SAID THE N. I. H. DECISION MAY ONLY POSTPONE VEXING QUESTIONS RELATED TO THE PATENTING OF GENES MANY COMPANIES AND RESEARCH INSTITUTIONS HAVE PATENTED GENES OVER THE YEARS BUT THOSE PATENTS WERE BASED ON THE IDENTIFICATION OF A GENE'S COMPLETE STRUCTURE AND FUNCTION NEW TECHNOLOGY NOW ALLOWS INDUSTRY AND ACADEMIC SCIENTISTS TO IDENTIFY PIECES OF GENES LONG BEFORE ANYONE KNOWS WHAT THE GENES DO MANY RESEARCHERS ARE WORRIED THAT IF THEY DON'T PATENT THESE DISCOVERIES SOMEONE ELSE WILL DROPPING THE PATENT CLAIMS DOESN'T RESOLVE THE QUESTION OF WHAT IT TAKES TO WIN A PATENT SAYS FRANCIS COLLINS THE CURRENT DIRECTOR OF THE U. S. GENOME PROJECT BUT BY BACKING OUT OF THE ISSUE DOCTOR COLLINS SAID THE N. I. H. MIGHT IMPROVE THE SCIENTIFIC ATMOSPHERE AND RELIEVE SOME OF THE BUILDING PRESSURE TO PATENT GENE FRAGMENTS EGGHEAD INCORPORATED SAID ITS NEW EMPHASIS ON PRICE CUTTING REDUCED MARGINS AND EARNINGS IN THE FISCAL THIRD QUARTER BUT PUSHED UP RETAIL SALES ON A COMPARABLE STORE BASIS BY EIGHTEEN PERCENT ITS STOCK PRICE TUMBLED NINE POINT FOUR PERCENT THE ISSAQUAH WASHINGTON COMPUTER SOFTWARE CONCERN WHICH HAS UNDERGONE MANAGEMENT UPHEAVAL AND OTHER INTERNAL PROBLEMS REPORTED EARNINGS FOR THE QUARTER ENDED JANUARY EIGHTH FELL THIRTY NINE PERCENT TO ONE POINT FOUR MILLION DOLLARS OR EIGHT CENTS A SHARE FROM TWO POINT THREE MILLION DOLLARS OR FOURTEEN CENTS A SHARE THE YEAR EARLIER SALES FOR THE QUARTER ROSE ELEVEN PERCENT TO TWO HUNDRED EIGHT POINT SIX MILLION DOLLARS FROM ONE HUNDRED EIGHTY EIGHT POINT THREE MILLION DOLLARS A YEAR BEFORE EGGHEAD'S EARNINGS WERE BELOW ANALYSTS' QUARTERLY MEAN ESTIMATES OF FOURTEEN CENTS A SHARE IN NASDAQ STOCK MARKET TRADING YESTERDAY THE COMPANY'S STOCK CLOSED AT NINE POINT SIX TWO FIVE DOLLARS A SHARE DOWN ONE DOLLAR THE CHINESE GOVERNMENT IS CRACKING DOWN ON THE MANUFACTURE OF BOOTLEGGED C. D.S AT THE SAME TIME IT'S LOOKING THE OTHER WAY TWO GRAY UNIFORMED ADMINISTRATIVE POLICE SHOWED UP IN THE NARROW LANES OF DONG FANG MARKET LAST WEEK EMPTIED SHELF AFTER SHELF OF COMPACT DISKS INTO CARDBOARD BOXES LOADED THEM INTO A WHITE VAN AND WHISKED THEM AWAY BUT THE RECENT RAID LIKE ONE EARLIER THIS YEAR IN SHENZHEN JUST NORTH OF HONG KONG WON'T MAKE MUCH OF A DENT IN A MUSHROOMING COUNTERFEIT COMPACT DISK TRADE THAT'S BECAUSE MANY OF THE FACTORIES THAT PRODUCE C. D.S IN CHINA ARE RUN BY LOCAL GOVERNMENTS OR BUSINESSES WITH STRONG NATIONAL POLITICAL TIES THERE'S A BIG GLOBAL MARKET FOR PIRATED C. D.S IN NINETEEN NINETY TWO PIRATED RECORDINGS ACCOUNTED FOR AN ESTIMATED TWO POINT ONE BILLION DOLLARS OF NEARLY THIRTY ONE BILLION DOLLARS IN GLOBAL RECORDED MUSIC SALES WORLDWIDE CHINA WILL PROBABLY SOON BE THE BIGGEST SOURCE OF PIRATED C. D.S IN THE WORLD AND WITH CHINA'S TRADE ROUTES AROUND THE GLOBE THEY COULD SPREAD TO MARKETS FROM AFRICA TO NORTH AMERICA MOST OF CHINA'S COUNTERFEITS ARE CURRENTLY BOUND FOR SOUTHEAST ASIA BUT A SHIPMENT OF CHINESE MADE FAKES WAS JUST INTERCEPTED ON ITS WAY TO ARGENTINA FAKES IN CHINA ARE GENERALLY EASY TO SPOT FROM THE TYPOGRAPHICAL ERRORS ON THEIR PACKAGING A MADONNA C. D. FOUND IN A MARKET NEAR GUANGZHOU LISTS QUOTE FEVET QUOTE AND QUOTE LIKE A PRAUER QUOTE INSTEAD OF QUOTE FEVER QUOTE AND QUOTE LIKE A PRAYER QUOTE THE ILLEGALLY PRODUCED DISKS SELL FOR THE EQUIVALENT OF TWO DOLLARS EACH IN SOUTH CHINA SHOPS BUY THEM FOR LESS THAN HALF THAT THE QUALITY OF THE RECORDINGS IS USUALLY HIGH THE MACHINES THAT PRODUCE C. D.S RELATIVELY SMALL HIGH TECH MACHINES THAT COULD FIT INTO A HOTEL ROOM ARE SIMPLY TRANSFERRING DIGITAL SIGNALS FROM LEGITIMATE RECORDINGS AND THEN EMBOSSING THEM ONTO FAKE C. D.S THE PROCESS IS MUCH THE SAME AS A COMPUTER STORING INFORMATION ON A DISK THE RECENT CRACKDOWNS ARE PART OF AN EFFORT BY THE GOVERNMENT TO IMPROVE CHINA'S INTERNATIONAL TRADE STATUS LAST MONTH ZHU RONGJI CHINA'S VICE PREMIER TOLD U. S. TREASURY SECRETARY LLOYD BENTSEN THAT CHINA WOULD ENFORCE INTERNATIONAL COPYRIGHT LAWS AND TRY TO CURB RAMPANT VIOLATIONS OF INTERNATIONAL PROPERTY RIGHTS THE PLEDGE MAY ENHANCE CHINA'S CHANCES OF JOINING THE GENERAL AGREEMENT ON TARIFFS AND TRADE BUT ENFORCEMENT WILL BE DIFFICULT LOCAL GOVERNMENTS PROTECT LOCAL ENTERPRISES SAYS CHENG CHING MING A FORMER RECORDING EXECUTIVE FROM SHANGHAI WHO IS NOW THE CHIEF CHINA REPRESENTATIVE FOR THE INTERNATIONAL FEDERATION OF PHONOGRAPHIC INDUSTRIES OR IFPI THE GROUP WHICH INCLUDES MOST OF THE WORLD'S MAJOR RECORD COMPANIES IS SO CONCERNED ABOUT PIRACY IN CHINA THAT IT HAS OPENED OFFICES IN GUANGZHOU SHANGHAI AND BEIJING TO MONITOR THE SITUATION THE FACTORIES CAN'T OPPOSE THE CENTRAL GOVERNMENT OPENLY MR. CHENG SAYS BUT IF THEY HAVE CONNECTIONS THEY WILL CONTINUE TO DO BUSINESS AND MANY DO HAVE CONNECTIONS ONE MAKER OF C. D.S AND LASER DISKS IN SHENZHEN DIPLOMATS SAY IS RUN BY THE SON OF A GENERAL IN THE PEOPLE'S LIBERATION ARMY THE BUSINESSMAN'S WIFE THEY SAY IS THE NIECE OF PRIME MINISTER LI PENG THERE WASN'T ANY REPLY AT THE FACTORY'S SWITCHBOARD LATE LAST WEEK MOREOVER THE STAKES IN THE ILLEGAL DISK BUSINESS ARE HIGH AT LEAST THIRTY FACTORIES COLLECTIVELY CAPABLE OF PRODUCING UP TO EIGHTY MILLION C. D.S A YEAR ARE NOW OPERATING IN CHINA WHICH HAS A MARKET FOR ABOUT THREE MILLION C. D.S SOME OF THE FACTORIES MAKE LEGITIMATE C. D.S EITHER FOR THE CHINESE RECORDING INDUSTRY OR FOR OTHER ASIAN MARKETS BUT THE EXCESS CAPACITY IS HUGE AND EACH C. D. MAKING MACHINE COSTS ABOUT ONE MILLION DOLLARS TO BUY THE IFPI SAYS SO THE PRESSURE IS ON TO MAKE DISKS EVEN WHEN C. D. FACTORIES AGREE TO ABIDE BY INTERNATIONAL LAWS THEY DON'T NECESSARILY DO IT WINGSUNG AUDIO VIDEO PRODUCTIONS COMPANY A C. D. MAKER HOUSED IN A DUSTY GRAY BUILDING IN A NEWLY URBAN AREA SOUTH OF GUANGZHOU HAS PROMISED THE FEDERATION THAT IT WON'T PIRATE C. D.S THEY KNOW THE FUTURE IS WITH LEGITIMATE PRODUCTS SAYS JEFF YI A LEGAL ADVISER TO THE INDUSTRY GROUP BUT AT A NEARBY ELECTRONICS MARKET A MAMMOTH MARKETPLACE WHERE THOUSANDS OF BOXES CONTAINING TENS OF MILLIONS OF DOLLARS IN STEREOS AND TELEVISIONS ARE ON SALE C. D. STORES SELL COUNTERFEIT DISKS THAT DEALERS SAY COME FROM WINGSUNG MANY ASIAN COUNTRIES HAVE HAD A HARD TIME ENFORCING LAWS AGAINST COUNTERFEITS BUT SOME OF THOSE PLACES HONG KONG SINGAPORE SOUTH KOREA AND TAIWAN HAVE BECOME MANUFACTURING CENTERS FOR LEGITIMATELY LICENSED PRODUCTS NEGATING THE ADVANTAGE OF PRODUCING KNOCKOFFS NOW CHINA HAS EMERGED AS ONE OF THE BIGGEST MARKETS FOR FAKE PRODUCTS COPIES OF FOREIGN MADE CLOTHING COMPUTER PARTS AND C. D.S ARE ALL POPULAR CHINESE COMPANIES EVEN PIRATE DOMESTIC PRODUCTS ZHANG JINFUN DIRECTOR OF QINGDAO THIRD PHARMACEUTICAL COMPANY COMPLAINS THAT COPIES OF HIS COMPANY'S SUCCESSFUL BLOOD PRESSURE MEDICINE HAVE TURNED UP EVERYWHERE IN CHINA BUT WITH THE CENTRAL GOVERNMENT'S ENDORSEMENT OF STRONGER INTELLECTUAL PROPERTY RIGHTS PROTECTION COMPANIES WITH LEGITIMATE LICENSES ARE FINDING THEY CAN GET SOME GOVERNMENT HELP THE RAIDS IN GUANGDONG PROVINCE MAY HAVE BEEN TRIGGERED BY THE PHONOGRAPHIC FEDERATION THOUGH THE GROUP'S MR. YI SAYS MONITORING C. D. FACTORIES NOT SHUTTING DOWN STREET VENDORS IS A BETTER SOLUTION THE GLOBAL FEDERATION ALSO IS GETTING HELP FROM CHINA'S LEGAL SYSTEM LAST YEAR CHINA SET UP AN INTELLECTUAL PROPERTY RIGHTS TRIBUNAL IN BEIJING RIGHT NOW ACCORDING TO FEDERATION REGIONAL DIRECTOR J. C. GIOUW A SHANGHAI COURT IS CONSIDERING CASES AGAINST C. D. FACTORIES IN NEARBY HANGZHOU AND SUZHOU A RULING IN THE FEDERATION'S FAVOR WOULD TIGHTEN THE NATIONAL POLICING OF OTHER COUNTERFEITERS CINCINNATI MILACRON INCORPORATED REPORTED A FOURTH QUARTER LOSS AS A RESULT OF A ONE TIME CHARGE FOR CLOSING TWO U. S. MACHINE TOOL PLANTS AND CONSOLIDATING MACHINE TOOL OPERATIONS THE COMPANY'S LOSS WAS FORTY SEVEN POINT THREE MILLION DOLLARS OR ONE DOLLAR AND FORTY CENTS A SHARE DUE TO THE ONE TIME CHARGE OF FORTY SEVEN POINT ONE MILLION DOLLARS THE QUARTERLY LOSS ALSO INCLUDED LOSSES OF FOUR POINT SEVEN DOLLARS MILLON ON THE SALE OF THE COMPANY'S SANO BUSINESS NET PROFIT A YEAR AGO WAS NINE POINT FOUR MILLION DOLLARS OR THIRTY FOUR CENTS A SHARE WHICH INCLUDED AN EXTRAORDINARY TAX CREDIT OF TWO POINT FIVE MILLION DOLLARS OR NINE CENTS A SHARE AS PART OF ITS CONSOLIDATION THE COMPANY WILL PHASE OUT TWO MACHINE TOOL FACILITIES IN FOUNTAIN INN S. C. AND GREENWOOD S. C. AND TRANSFER THE BULK OF THOSE OPERATIONS TO CINCINNATI THE CONSOLIDATION WILL REDUCE THE MACHINE TOOL GROUP'S WORK FORCE BY TWO HUNDRED THIRTY FIVE PEOPLE OR TWELVE PERCENT CINCINNATI MILACRON EXPECTS ANNUAL COST SAVINGS OF ABOUT SIXTEEN MILLION DOLLARS FROM THE MOVES SALES FOR THE QUARTER ROSE TWENTY FIVE PERCENT TO TWO HUNDRED SEVENTY TWO POINT SEVEN MILLION DOLLARS FROM TWO HUNDRED EIGHTEEN POINT ONE MILLION DOLLARS MAINLY REFLECTING CONTRIBUTIONS FROM THE VALENITE AND FERRMATIK UNITS ACQUIRED IN NINETEEN NINETY THREE CINCINNATI MILACRON MAKES MACHINE TOOLS PLASTICS MACHINERY COMPUTER CONTROLS MEASUREMENT AND INSPECTION EQUIPMENT GRINDING WHEELS AND METALWORKING FLUIDS FOR THE YEAR SALES WERE ONE POINT OH THREE BILLION DOLLARS UP FROM SEVEN HUNDRED EIGHTY NINE MILLION DOLLARS REFLECTING QUOTE RECORD SHIPMENTS OF PLASTICS MACHINERY AND GRINDING WHEELS AS WELL AS SALES QUOTE OF THE NEWLY ACQUIRED UNITS THE COMPANY SAID OUR INDUSTRIAL PRODUCTS GROUP IS PERFORMING QUITE WELL BUT WE ARE DISAPPOINTED WITH THE OPERATING RESULTS IN OUR CAPITAL GOODS BUSINESSES BOTH MACHINE TOOLS AND PLASTICS MACHINERY THE COMPANY SAID IT HOPES THE CONSOLIDATION WILL CORRECT EXCESS CAPACITY PROBLEMS IN ITS MACHINE TOOLS BUSINESS SIT DOWN BEFORE YOU FALL DOWN TWO PROJECTION SCREEN MAKERS ARE HEEDING THAT ADVICE THE COMPANIES MAKE SCREENS WITHOUT TRIPODS AND SAY THEIR LEGLESS FLOOR SITTERS DON'T WOBBLE AND ARE LESS TRIPPED OVER THAN CONVENTIONAL SCREENS A LEGLESS PROJECTION SCREEN ALSO CAN HIDE ANY CLUTTER BEHIND IT QUARTET MANUFACTURING SKOKIE ILLINOIS RECENTLY STARTED U. S. SALES OF ITS DELTASCREEN INVENTED IN GREAT BRITAIN BY COLIN IDE DELTASCREEN COMES AS BIG AS SEVENTY BY SEVENTY INCHES AND PULLS UP FROM ITS FLOOR BASE TO A MAXIMUM HEIGHT OF EIGHT FEET QUARTET EXECUTIVE VICE PRESIDENT RICHARD GILBERT HOPES TO SELL IT TO COMPANIES IN THE HOTEL AND HOSPITALITY BUSINESS NOT LIKELY COUNTERS RICHARD LUNDIN PRESIDENT AND CHIEF EXECUTIVE OF DA LITE SCREEN ANOTHER BIG MAKER OF PRESENTATION PRODUCTS THE DELTASCREEN IS QUOTE A NEAT PRODUCT QUOTE MR. LUNDIN SAYS BUT TOO SMALL AND COSTLY DA LITE MAKES A LEGLESS SCREEN THE FLOOR MODEL C. UP TO TWELVE BY TWELVE FEET THE SMALLEST RETAILS FOR THREE HUNDRED SIXTY EIGHT DOLLARS ROUGHLY HALF THE PRICE OF THE LARGEST COMPARABLE DELTASCREEN AT SIX HUNDRED NINETY FIVE DOLLARS BUT AT LEAST TWO DELTASCREEN USERS SEEM TO LIKE IT IT'S NOT AS EASY FOR KIDS TO TIP SAYS SUSIE SOLESBEE MEDIA SPECIALIST AT NORTH HALL MIDDLE SCHOOL GAINESVILLE GEORGIA BUT THE FIVE AND ONE HALF FOOT TALL MS. SOLESBEE SAYS SHE FINDS THE SCREEN CUMBERSOME TO SET UP DAVID IKLA DIRECTOR OF SCIENTIFIC COMPUTING AT THE NATIONAL JEWISH HOSPITAL DENVER SAYS HE'S TIRED OF TRIPPING OVER THE LEGS OF TRIPOD SCREENS HE EXPECTS HIS DELTASCREEN WILL ELIMINATE THAT HAZARD ONE COMPANY REMAINING FIRMLY ON THREE LEGS IS APOLLO RONKONKOMA N. Y. PRESIDENT HARRY CHARLSTON CREDITS QUARTET WITH INNOVATION IN A PRETTY BACKWARD INDUSTRY BUT HE SAYS A TRIPOD SCREEN IS STABLE ONCE IT'S UP AND HE'S NEVER HEARD OF ANYONE TRIPPING ON THE LEGS POOR BUT BEAUTIFUL SOME ARCHITECTS ARE DISCOVERING THAT A TIGHT BUDGET CAN BE A BLESSING INSPIRING CREATIVITY AND PRODUCING SOLUTIONS ALMOST AS GOOD OR BETTER THAN MORE EXPENSIVE ONES PERSHING SQUARE LOS ANGELES' OLDEST SQUARE JUST REOPENED RECONSTRUCTION WHICH WAS MANAGED BY MAGUIRE THOMAS PARTNERS AIMED AT RECLAIMING THE FIVE ACRE LANDMARK FROM DRUG DEALERS IT NOW INCLUDES A PURPLE CAMPANILE AQUEDUCT WATERFALL A ROUND POOL STABBED BY THE DESIGN OF A FAKE EARTHQUAKE FAULT GARDEN CUM AMPHITHEATER STATUE GARDEN YELLOW CAFE RUN BY THE ADJACENT BILTMORE HOTEL AND GROVES OF PALM SWEETGUM AND CAMPHOR TREES LANDSCAPE ARCHITECT LAURIE OLIN AND ARCHITECT RICARDO LEGORRETA HAD HOPED TO PAVE MUCH OF THE SQUARE WITH MEXICAN STONE BUT HAD TO SETTLE FOR ROSE COLORED CONCRETE STAMPED WITH A BASKET WEAVE PATTERN THE CONCRETE ISN'T BETTER THAN THE STONE SAYS MR. OLIN BUT IT'S SOME OF THE BEST CONCRETE I'VE SEEN IN AMERICA MR. OLIN RECALLS WANTING TO PLANT A ROW OF TREES ON THE ROOF OF A PARKING GARAGE IN MASSACHUSETTS TOLD THE ROOF COULDN'T BEAR THE LOAD WITHOUT EXPENSIVE NEW SUPPORTS MR. OLIN PLANTED HIS TREES IN THE BASEMENT AND CUT HOLES IN THE ROOF FOR THE BRANCHES THE UNEXPECTED RESULT DAPPLED LIGHT ON THE LOWER FLOOR AND A SHORTAGE OF FUNDS HAS FORCED LANDSCAPE ARCHITECTS MACHADO AND SILVETTI TO SUBSTITUTE BRICKS FOR GRANITE STONES IN THE PAVILIONS AND TERRACE IN SOUTH PARK AT NEW YORK'S BATTERY PARK CITY QUOTE IT'S A RICHER AND POSSIBLY BETTER AND PROBABLY MORE ROMANTIC DESIGN QUOTE SAYS MACHADO ASSOCIATE PETER LOFGREN WITH THIS LIFE PRESERVER EVERY PART OF BABY STAYS DRY SOME PLANES CARRY SMALL LIFE VESTS FOR LARGER CHILDREN BUT FEW CARRY DEVICES TO KEEP INFANTS AFLOAT IN CASE OF A WATER LANDING LIFE JACKETED PARENTS MAY TRY TO HOLD BABIES IN THEIR ARMS OR ON SEAT CUSHIONS AN INFANT IS REALLY A GONER SAYS JOHN PETRAKIS AN ENGINEER WITH THE FEDERAL AVIATION ADMINISTRATION SO A MIAMI COMPANY HOOVER INDUSTRIES HAS DESIGNED A LIFE PRESERVER THAT IT SAYS KEEPS BABIES HIGH DRY AND WARM MADE OF DOUBLE WALLED NYLON COATED WITH URETHANE THE CAPSULE LIKE PRESERVER HAS AN INTERNAL HARNESS TO HOLD THE BABY A WINDOW WATERPROOF AIR VENTS BALLAST TO KEEP THE CAPSULE UPRIGHT AND A LINE A PARENT CAN HOLD APPROVED BY THE FEDERAL AVIATION ADMINISTRATION THE HOOVER INFANT LIFE PRESERVER INFLATES IN TWO SECONDS THE COMPANY HOPES TO MEET COAST GUARD REQUIREMENTS AS WELL SO THE PRESERVER COULD BE USED ON BOATS JAPAN AIRLINES HAS SHOWN INTEREST IN THE PRODUCT SAYS HOOVER PRESIDENT STEPHEN BASINSKI AND A DOZEN INTERNATIONAL DISTRIBUTORS HAVE PURCHASED SAMPLES A RIVAL RICHARD SWITLIK JUNIOR DIRECTOR OF MARKETING FOR SWITLIK PARACHUTE TRENTON N. J. CONGRATULATES HOOVER ON A GOOD IDEA THAT SHOULD BE DONE BUT ADDS THAT IF IT ISN'T REQUIRED THE AIRLINES AREN'T GOING TO DO IT NYNEX CORPORATION PLANS TO SPEND ABOUT TWO POINT EIGHT BILLION DOLLARS TO BUILD AN INTERACTIVE NETWORK ACROSS THE NORTHEAST THAT COULD CONNECT UP TO TWO MILLION HOMES AND BUSINESSES BY THE END OF NINETEEN NINETY SIX BUT NYNEX STOPPED SHORT OF ANNOUNCING A ROLLOUT FOR NEW YORK THE MOST LUCRATIVE POTENTIAL U. S. MARKET FOR NEW MULTIMEDIA SERVICES UNTIL IT CAN WIN ASSURANCES OF GETTING GREATER REGULATORY RELIEF INSTEAD EMPLOYING A CARROT AND STICK APPROACH WITH REGULATORS THE TELEPHONE COMPANY SAID IT WILL START ITS ENTRY INTO THE INTERACTIVE ERA MERELY BY CONSTRUCTING A SIXTY THOUSAND HOME SYSTEM IN WARWICK R. I. RHODE ISLAND IS THE ONLY STATE IN NYNEX'S SERVICE REGION THAT OFFERS THE FREE FORM OF REGULATION THE COMPANY SEEKS QUOTE INCENTIVE BASED QUOTE RULES THAT FREE THE BABY BELLS TO HOLD ON TO MORE PROFIT IN EXCHANGE FOR FREEZING OR HOLDING DOWN PRICES ON MONOPOLY SERVICES THE OLDER APPROACH OF RATE OF RETURN REGULATION GUARANTEES THE BELLS A CERTAIN LEVEL OF PROFIT BUT IT FORCES REFUNDS WHEN THEY SURPASS THAT CAP WE AREN'T IN THE POSITION TO ANNOUNCE INTERACTIVE PLANS IN NEW YORK UNTIL WE SEE WHAT HAPPENS WITH THE REGULATORY LANDSCAPE RICHARD JALKUT PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NYNEX'S NEW YORK UNIT SAID IN AN INTERVIEW IT'S TOO RISKY UNDER THE CURRENT CIRCUMSTANCES NYNEX IS THE LATEST OF THE SEVEN BABY BELLS TO ANNOUNCE ITS INTERACTIVE PLANS PACIFIC TELESIS GROUP U. S. WEST INCORPORATED AND BELL ATLANTIC CORPORATION WHICH IS IN THE PROCESS OF ACQUIRING CABLE GIANT TELE COMMUNICATIONS INCORPORATED HAVE ALL ANNOUNCED AGGRESSIVE PLANS TO CONSTRUCT INTERACTIVE NETWORKS ACROSS THEIR TERRITORIES TOKYO PRICES ROSE THURSDAY THOUGH MANY INVESTORS STAYED OUT OF THE MARKET AHEAD OF A THREE DAY HOLIDAY WEEKEND AND THE U. S. JAPAN SUMMIT LONDON STOCKS FELL AMID A GENERAL SENSE OF UNEASINESS THOUGH VOLUME WAS STRONG FRANKFURT SHARES SCORED GAINS DESPITE JITTERS WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED FIFTEEN POINT EIGHT OH DOWN ZERO POINT ONE SIX REFLECTING LOWER EUROPEAN AND AMERICAN MARKETS AND HIGHER ASIA SLASH PACIFIC MARKETS HEALTH CARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED SIXTY POINT SIX FOUR UP FOUR POINT ONE NINE OR TWO POINT SEVEN PERCENT WITH COLUMBIA HEALTHCARE OF THE U. S. POSTING A SEVEN POINT SIX PERCENT GAIN IN ITS LOCAL CURRENCY TOBACCO STOCKS TRAILED AT EIGHTY FOUR POINT TWO THREE DOWN ONE POINT FIVE TWO OR ONE POINT EIGHT PERCENT WITH PHILIP MORRIS OF THE U. S. SLIDING TWO POINT THREE PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH SLUMPED FOUR HUNDRED NINE POINT EIGHT FIVE POINTS WEDNESDAY GAINED ONE HUNDRED FORTY NINE POINT THREE TWO TO NINETEEN THOUSAND NINE HUNDRED NINETY POINT SEVEN OH NEAR THE DAY'S HIGHS THURSDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT THREE HUNDRED FIFTY MILLION SHARES DOWN FROM FOUR HUNDRED FIFTY THREE POINT FOUR MILLION SHARES A DAY EARLIER ADVANCING ISSUES OUTNUMBERED DECLINERS SIX HUNDRED FORTY SEVEN TO THREE HUNDRED SEVENTY THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH FELL EIGHTEEN POINT SIX EIGHT POINTS WEDNESDAY ROSE TEN POINT ONE TWO TO ONE THOUSAND SIX HUNDRED EIGHT POINT ONE FOUR AMID THE LIGHT TRADING A COUPLE OF LATE BUY ORDERS FROM OVERSEAS SECURITIES HOUSES FOR TOPIX FUTURES CONTRACTS PROPELLED THE NIKKEI INTO ITS ONLY MAJOR MOVE OF THE DAY NUDGING IT BRIEFLY ABOVE TWENTY THOUSAND BEFORE IT SAGGED A BIT AT THE END MOST INVESTORS WERE SIDELINED AHEAD OF THE FRIDAY MARKET HOLIDAY AND THE SUMMIT BETWEEN THE U. S. AND JAPANESE LEADERS SLOWING THE FRENZIED ACTIVITY THAT HAS ACCOMPANIED POLITICAL BATTLES IN THE PAST TWO WEEKS ABOUT JAPANESE GOVERNMENT ACTIONS TO STIMULATE THE ECONOMY JAPANESE FINANCIAL MARKETS HAVE BEEN AFFECTED BY UNCERTAINTIES CAUSED PARTLY BY LACK OF PROGRESS IN TRADE TALKS BETWEEN JAPAN AND THE U. S. PRECEDING THE SUMMIT THE U. S. SEEKS TO REDUCE JAPAN'S PERSISTENT TRADE SURPLUS AND TO ALLOW OR IMPROVE ACCESS BY U. S. GOODS TO JAPAN MANY TOKYO INVESTORS WERE WORRIED THAT FAILURE TO REACH A COMPROMISE IN THE TRADE TALKS WITH THE U. S. COULD SEND THE JAPANESE YEN SOARING AGAINST THE DOLLAR WHICH COULD SQUEEZE JAPAN'S EXPORTERS BY LOWERING THE YEN DENOMINATED VALUE OF THEIR OVERSEAS EARNINGS AND IN TURN HURT THE STOCK MARKET IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX DROPPED TWENTY TWO POINT ONE POINTS TO THREE THOUSAND FOUR HUNDRED SEVEN POINT OH THE F. T. THIRTY STOCK INDEX FELL FOURTEEN POINT EIGHT POINTS TO TWO THOUSAND SIX HUNDRED NINETEEN POINT FOUR VOLUME WAS NINE HUNDRED EIGHTY NINE POINT NINE MILLION SHARES COMPARED WITH NINE HUNDRED TWELVE MILLION SHARES A DAY EARLIER THE F. T. S. E. ONE HUNDRED RANGED FROM A HIGH OF THREE THOUSAND FOUR HUNDRED FORTY SIX POINT ONE WHICH WAS LOST QUICKLY TO A LOW OF THREE THOUSAND FOUR HUNDRED POINT THREE BEFORE THE INDEX REGAINED SOME OF ITS LOSS INVESTORS GREW INCREASINGLY WARY OF PICKING UP BARGAINS PRESSURED BY A MIXED BAG OF COMPANY NEWS POLITICAL CONCERNS AND MONITORING OF WALL STREET SOME INVESTORS CONSOLIDATED POSITIONS AHEAD OF SEVERAL REPORTS NEXT WEEK ON BRITISH ECONOMIC DATA THAT ARE EXPECTED TO DETERMINE MORE FORCEFULLY THE MARKET'S DIRECTION WHICH IS GENERALLY EXPECTED TO BE UP IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX ADVANCED THIRTY THREE POINT SIX SEVEN POINTS OR ONE POINT SIX PERCENT TO TWO THOUSAND ONE HUNDRED EIGHTEEN POINT NINE SIX LED BY THE PERFORMANCE OF GOVERNMENT BOND FUTURES THOUGH TWENTY NINE OF THE D. A. X. STOCKS ROSE STOCK MARKET SENTIMENT WAS UNCERTAIN AND HESITANT PARTLY BECAUSE OF WARNING STRIKES IN WESTERN GERMANY'S METALWORKING SECTOR WHEN BOND FUTURES ROSE STOCK PRICES FOLLOWED HELPED BY SOME COVERING OF POSITIONS THAT HAD BEEN SOLD SHORT OR BUYING TO REPLACE BORROWED STOCK THAT HAD BEEN SOLD IN HOPES OF A PRICE DECLINE THAT COULD HAVE ALLOWED A PROFIT IN PARIS STOCKS SHED STRONG EARLY GAINS WHEN PROFIT TAKERS MOVED IN AND PRICES FINISHED WITH SMALL LOSSES IN AMSTERDAM SHARES ENDED MIXED ON SOME LATE WEAKNESS CAUSED BY A SOFTER U. S. DOLLAR IN CURRENCY DEALINGS AND LOWER STOCK PRICES IN LONDON IN MILAN PRICES ROSE HANDILY AS ENOUGH BUYING EMERGED TO OUTWEIGH TECHNICAL FACTORS INFLUENCING THE MARKET ON THE EVE OF THE FEBRUARY TRADING ACCOUNT'S FINAL DAY IN MADRID EQUITIES SPENT MOST OF THE SESSION AT HIGHER LEVELS BUT FINISHED LOWER AND PARTICIPANTS COULDN'T PINPOINT A REASON FOR THE DROP CITING ONLY THE LACK OF A THEME IN STOCKHOLM SHARES SANK TWO POINT ONE PERCENT IN CHOPPING TRADING AS CONCERNS ABOUT INTEREST RATES AND CORPORATE EARNINGS REVERSED THE MARKET'S STRONG OPENING LIKEWISE IN ZURICH PRICES OPENED HIGHER BUT REVERSED DIRECTION AT MIDDAY AND FINISHED LOWER WITH FUTURES ACTIVITY INFLUENCING LATE SELLING THE MARKET'S SUSTAINED CORRECTION THIS WEEK STEMMED FROM A U. S. CREDIT TIGHTENING LAST FRIDAY AND BANKS AGAIN WERE THE FOCUS OF SELLING IN MEXICO CITY STOCKS TUMBLED ONE POINT FOUR PERCENT ON CONTINUED PROFIT TAKING AFTER THE MARKET HIT RECORD HIGHS ON MONDAY AND TUESDAY THE CORRECTION DIDN'T SURPRISE INVESTORS AS PRICES HAD ADVANCED ALMOST TWELVE PERCENT THIS YEAR A GAIN THAT WAS TRIMMED TO EIGHT POINT THREE PERCENT IN THE PAST TWO SESSIONS IN SYDNEY SHARES SLUMPED ONE POINT SIX PERCENT PRICES WEAKENED AT THE OPENING AS INVESTORS WERE NERVOUS ABOUT OVERSEAS MARKETS AND MORE PROFIT TAKING EXPECTED AFTER A RECENT BULL RUN BUT THE DROP GATHERED MOMENTUM TAKING SOME PARTICIPANTS BY SURPRISE SOME BLAMED TECHNICAL TRADING FOR THE LOSSES GOLD SHARES FELL DESPITE A RISE IN THE METAL'S PRICE IN MANILA STOCKS GAINED SOLIDLY IN LIGHT DEALINGS INCLUDING FOLLOW UP BUYING FOLLOWING A PEACEFUL RALLY WEDNESDAY IN THE PHILIPPINES TO PROTEST PLANNED OIL PRICE INCREASES HOLIDAY OBSERVANCES FOR THE LUNAR NEW YEAR CLOSED MANY ASIAN BOURSES INCLUDING THOSE IN HONG KONG SINGAPORE KUALA LUMPUR TAIPEI AND SEOUL 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END THE FEDERAL TRADE COMMISSION HAS CONCLUDED ITS LEGAL BATTLE WITH INVENTION SUBMISSION CORPORATION OF PITTSBURGH BUT INVENTOR ADVOCATES SAY THE WAR AGAINST MARKETING COMPANIES THAT ALLEGEDLY PREY ON AMATEUR INVENTORS IS FAR FROM OVER THE F. T. C. ANNOUNCED THIS WEEK THAT IT HAD SIGNED A CONSENT DECREE WITH I. S. C. THAT REQUIRES THE COMPANY TO PAY ONE POINT TWO MILLION DOLLARS INTO A CONSUMER REDRESS FUND AND TO DISCLOSE ITS SUCCESS RATE TO PROSPECTIVE CLIENTS THE SETTLEMENT ALSO PERMANENTLY PROHIBITS I. S. C. FROM MAKING A BROAD RANGE OF MISREPRESENTATIONS PARTICULARLY CONCERNING ITS EXPERIENCE IN PROMOTING INVENTIONS THE FINANCIAL GAINS ITS CLIENTS WILL ACHIEVE ITS ACCESS TO BUSINESS ORGANIZATIONS AND ITS EVALUATION OF THE MARKETABILITY OF CLIENTS' IDEAS COMPANIES SUCH AS I. S. C. SAY THEY TRY TO MARKET INVENTORS' IDEAS TO MANUFACTURERS AND OTHERS THEY OFTEN CHARGE THE INVENTORS THOUSANDS OF DOLLARS IN FEES COMPLAINTS ABOUT THE METHODS OF MANY OF THESE CONCERNS HAVE PROLIFERATED IN RECENT YEARS QUOTE I. S. C. WAS THE BIG FISH OF THE INDUSTRY QUOTE SAYS PHOEBE MORSE DIRECTOR OF THE F. T. C.'S BOSTON OFFICE SHE SAYS THE AGREEMENT WHICH ALSO APPLIES TO TWO AFFILIATED CONCERNS THEIR PARENT COMPANY TECHNOSYSTEMS CONSOLIDATED CORPORATION AND MARTIN S. BERGER ITS OWNER SHOULD SEND WARNING SIGNALS TO ANYBODY TRYING THE SAME TACTICS MS. MORSE DECLINES TO SAY WHETHER THE F. T. C. IS INVESTIGATING OTHER CONCERNS BUT IMPLIES THAT IT IS THE COMMISSION BELIEVES IN A LEVEL PLAYING FIELD SHE SAYS AS IT TAKES ACTION AGAINST OTHER COMPANIES IT WILL WANT TO GET SIMILAR RELIEF INVENTOR GROUPS ARE HAILING THE SETTLEMENT AS A BLOW TO THE BIGGEST AND MOST VISIBLE MARKETING CONCERN I. S. C. IS THE WORST OF THE CROP SAYS CLAYTON WILLIAMSON PRESIDENT OF THE KANSAS ASSOCIATION OF INVENTORS A NONPROFIT GROUP ROBERT LOUGHER FOUNDER OF INVENTORS AWARENESS GROUP INCORPORATED SAYS I. S. C. TOPS A LIST HE PUBLISHES OF MORE THAN TWENTY COMPANIES THAT INVENTORS SHOULD APPROACH WITH EXTREME CAUTION AND ROBERTA TOOLE PRESIDENT OF THE UNITED INVENTORS ASSOCIATION OF THE U. S. A. SAINT LOUIS SAYS QUOTE I MUST HAVE HEARD FROM FIVE HUNDRED PEOPLE OVER THE PAST FEW YEARS WHO HAVE LOST MONEY TO I. S. C. QUOTE BUT INVENTOR ADVOCATES WORRY THAT NO SINGLE LAW ENFORCEMENT ACTION CAN PUT A STOP TO ABUSES THAT HAVE PLAGUED THE INVENTION COMMUNITY FOR DECADES AT BEST THEY SAY IT WILL MAKE A DENT IN AN INDUSTRY THAT RAKES IN BETWEEN ONE HUNDRED MILLION DOLLARS AND TWO HUNDRED MILLION DOLLARS A YEAR OFTEN COMPANIES THAT HAVE BEEN TARGETS OF STATE OR FEDERAL PROBES CHANGE THEIR NAMES OR SHUT DOWN AND MOVE TO ANOTHER STATE THESE ADVOCATES SAY CHASING THESE PEOPLE IS LIKE HUNTING GOPHERS THEY DISAPPEAR DOWN A HOLE AND POP UP SOMEWHERE ELSE SAYS GERALD UDELL A MARKETING PROFESSOR AT SOUTHWEST MISSOURI STATE UNIVERSITY IN SPRINGFIELD MISSOURI I. S. C. IS STAYING PUT AND PUTTING A POSITIVE SPIN ON THE CONSENT DECREE THIS IS A VERY POSITIVE CONCLUSION SAYS MR. BERGER THE OWNER IN A WRITTEN STATEMENT WE BELIEVE THAT IN SIGNING THIS ORDER I. S. C. HAS SET THE HIGHEST POSSIBLE STANDARD FOR OTHER COMPANIES TO FOLLOW THE COMPANY DENIES ANY WRONGDOING INVENTOR ADVOCATES SAY THEY ARE FOCUSING THEIR EFFORTS LESS ON LEGAL CHALLENGES TO INVENTION PROMOTION COMPANIES AND MORE ON EDUCATING WOULD BE ENTREPRENEURS ABOUT THE PERILS OF PAYING UPFRONT FEES FOR MARKETING SERVICES THAT IS WHAT MR. LOUGHER OF INVENTORS AWARENESS GROUP SAYS HE IS DOING A FORMER EMPLOYEE OF AMERICAN INVENTORS CORPORATION IN WESTFIELD MASSACHUSETTS HE SAYS HE QUIT IN DISGUST AFTER CONCLUDING THAT THE INVENTION PROMOTION CONCERN WAS TAKING IN MILLIONS OF DOLLARS FROM UNSUSPECTING INVENTORS BUT RARELY IF EVER GETTING ITS CUSTOMERS' IDEAS TO MARKET HE ESTABLISHED INVENTORS AWARENESS GROUP TO EXPOSE THE OPERATIONS OF A. I. C. AND OTHER MARKETING COMPANIES HE HAS COMPILED A BROCHURE THAT DETAILS WAYS TO VERIFY THEIR CREDIBILITY AND ALSO PUBLISHES AN OCCASIONAL NEWSLETTER IN RESPONSE TO HIS ALLEGATIONS A. I. C. SUED MR. LOUGHER AND HIS ORGANIZATION IN HAMPDEN COUNTY MASSACHUSETTS SUPERIOR COURT LATE LAST YEAR FOR ALLEGEDLY VIOLATING A NONDISCLOSURE AGREEMENT THAT FORBIDS HIM FROM REVEALING CONFIDENTIAL INFORMATION ABOUT THE COMPANY RON BOULERICE A. I. C.'S OWNER SAYS MR. LOUGHER IS A DISGRUNTLED FORMER EMPLOYEE WHO IS GUILTY OF LIBEL AND SLANDER AGAINST THE CONCERN MR. BOULERICE ACKNOWLEDGES THAT HIS CUSTOMERS' SUCCESS RATE IS LESS THAN TWO PERCENT HE WON'T SPECIFY HOW MUCH LESS BUT SAYS A. I. C. MAKES IT CLEAR TO CUSTOMERS HOW DIFFICULT IT IS TO GET A NEW PRODUCT TO MARKET ASKED TO DESCRIBE SOME INVENTIONS THAT HIS COMPANY HAS COMMERCIALIZED HE CITES A STOMACH EXERCISER AND A DEVICE THAT HOLDS A TUBE DURING STOMACH OPERATIONS LEGITIMATE MARKETING COMPANIES DO EXIST BUT THEY GENERALLY RELY ON ROYALTIES RATHER THAN UPFRONT FEES AND TEND TO HAVE HIGH SUCCESS RATES PEOPLE FAMILIAR WITH THE INDUSTRY SAY IN CONTRAST THEY SAY SOME INVENTION MARKETING COMPANIES HAVE BATTING AVERAGES CLOSE TO ZERO CERTAINLY THAT IS THE CASE WITH WESTERN INVENTION SUBMISSION CORPORATION ONE OF MR. BERGER'S I. S. C. COMPANIES UNDER A TOUGH MINNESOTA LAW INVENTION MARKETING COMPANIES IN THAT STATE MUST DISCLOSE THEIR SUCCESS RATES TO PROSPECTIVE CLIENTS THE LATEST STATEMENT THAT PENNY BECKER EXECUTIVE DIRECTOR OF THE MINNESOTA INVENTORS CONGRESS HAS SEEN FROM WESTERN INVENTION SUBMISSION STATES THAT OF SEVEN THOUSAND SIX HUNDRED FIFTY ONE CUSTOMERS WHO HAD SIGNED CONTRACTS QUOTE ZERO HAVE RECEIVED MONEY IN EXCESS OF FEES PAID QUOTE WHO WOULD DO BUSINESS WITH THEM AFTER SEEING THAT MS. BECKER WONDERS BUT PEOPLE STILL DO I CAN'T UNDERSTAND IT CAMERON ASHLEY INCORPORATED AN INITIAL OFFERING OF TWO MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL THREE HUNDRED THOUSAND SHARES VIA ROBINSON HUMPHREY COMPANY AND J. C. BRADFORD AND COMPANY OVERHEAD DOOR INCORPORATED AN INITIAL OFFERING OF ABOUT SEVEN POINT SEVEN MILLION CLASS A COMMON SHARES WITH AN OVERALLOTMENT OPTION OF ONE POINT TWO MILLION SHARES VIA MORGAN STANLEY AND COMPANY C. S. FIRST BOSTON AND GOLDMAN SACHS AND COMPANY NATIONAL MATERIAL CORPORATION AN INITIAL OFFERING OF FIVE POINT FIVE MILLION CLASS A COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR EIGHT HUNDRED TWENTY FIVE THOUSAND ADDITIONAL SHARES VIA GOLDMAN SACHS AND SALOMON BROTHERS INCORPORATED ZENITH ELECTRONICS CORPORATION A SHELF OFFERING FOR TWO MILLION COMMON SHARES CALL IT THE LAND RUSH OF THE NINETEEN NINETIES ONLY A FINITE AMOUNT IS AVAILABLE FROM NATURE AND ANY SIGNS THAT NEW SECTIONS WILL OPEN UP BRING THRONGS OF PEOPLE WAVING CHECKBOOKS WE'RE TALKING ABOUT THE ELECTROMAGNETIC SPECTRUM THE PROBLEM IS A SIMPLE ONE SO MANY WIRELESS VENTURES AND APPLICATIONS ARE BEING PROPOSED THAT SOME PEOPLE FEAR WIDESPREAD SCARCITY OF COMMERCIALLY USABLE FREQUENCIES ALREADY CERTAIN BANDS OF THE SPECTRUM SUCH AS THOSE FOR CELLULAR PHONE OPERATION ARE OVERCROWDED IN SOME CITIES BUT SCARCITY CREATES OPPORTUNITY TELECOMMUNICATIONS GIANTS AND SMALL STARTUPS ARE ADOPTING NEW TECHNIQUES TO BETTER EXPLOIT FAMILIAR FREQUENCIES AND THEY ARE EXPLORING PARTS OF THE RADIO SPECTRUM THAT HAVE BEEN UNTAPPED FOR COMMERCIAL PURPOSES THESE EFFORTS MAY NOT COME IN TIME TO HEAD OFF A SHORT TERM CRUNCH BUT THEY ARE LIKELY TO INCREASE THE CAPACITY OF THE ENTIRE SPECTRUM EVENTUALLY MAKING POSSIBLE THE EXPANSION OF WIRELESS VOICE AND DATA COMMUNICATIONS AND CUTTING THE PRICE PEOPLE PAY FOR THEM QUOTE I BELIEVE WE'RE MOVING FROM A SPECTRUM SHORTAGE TO A SPECTRUM GLUT QUOTE SAYS IRA BRODSKY PRESIDENT OF DATACOMM RESEARCH COMPANY A WIRELESS RESEARCH CONCERN IN WILMETTE ILLINOIS HERE'S A LOOK AT SOME OF THE WAYS THAT COMPANIES ARE LOOKING TO SQUEEZE MORE OUT OF THE ELECTROMAGNETIC SPECTRUM DIVIDE AND CONQUER CONSUMERS ARE ALREADY FAMILIAR WITH ONE TRICK INCREASING CAPACITY BY SPLITTING THE TERRITORY CELLULAR PHONES DIVIDE A GEOGRAPHIC REGION INTO SECTIONS CALLED CELLS CALLERS IN DIFFERENT CELLS CAN SIMULTANEOUSLY USE THE SAME FREQUENCIES WITHOUT INTERFERENCE AS MARKETS GET CROWDED GETTING A CELLULAR DIAL TONE IS ALREADY DIFFICULT AT TIMES IN LOS ANGELES EXISTING CELLULAR CARRIERS ADD ADDITIONAL TRANSMISSION TOWERS TO IMPROVE SIGNAL QUALITY AND INCREASE THE NUMBER OF SIMULTANEOUS USERS THE NEXT STEP IS TO CREATE MICROCELLS WHICH BOOST THE NUMBER OF POTENTIAL USERS BY USING EVEN SMALLER GEOGRAPHIC DIVISIONS AMERICAN TELEPHONE AND TELEGRAPH COMPANY FOR EXAMPLE ALREADY OFFERS A WIRELESS SERVICE THAT USES CELLS THAT ARE HUNDREDS OF FEET ACROSS COMPARED WITH A RANGE OF ONE TO TWENTY MILES FOR TODAY'S CELLULAR SYSTEMS ONE EARLY INSTALLATION IS IN NEW YORK'S PENNSYLVANIA STATION MICROCELLS ARE A KEY FEATURE OF PERSONAL COMMUNICATIONS SERVICES THE NEW WIRELESS TECHNOLOGY THAT IS EXPECTED TO SPAWN MYRIAD POCKET SIZE COMMUNICATORS IN THREE TO FIVE YEARS P. C. S. CELLS WILL BE AS LITTLE AS A FEW HUNDRED FEET ACROSS AND USE FREQUENCIES AROUND ONE POINT EIGHT GIGAHERTZ A GIGAHERTZ IS A BILLION CYCLES PER SECOND COMPARED WITH CELLULAR'S RANGE OF EIGHT HUNDRED TO NINE HUNDRED MEGAHERTZ MILLIONS OF CYCLES THE FEDERAL COMMUNICATIONS COMMISSION'S AUCTION FOR P. C. S. FREQUENCIES IS EXPECTED TO RAISE ABOUT TEN BILLION DOLLARS THOUGH SKEPTICS SUGGEST THE ACTUAL AMOUNT WILL BE SMALLER BECAUSE FRANCHISES ARE SO FRAGMENTED THIS MAY BE THE BIGGEST AUCTION IN HISTORY SAYS BOB STEEN DIRECTOR OF WIRELESS SYSTEMS FOR INTERNATIONAL BUSINESS MACHINES CORPORATION MR. STEEN ADDS THAT THE RESULTING COMPETITION FOR SENDING DATA VIA P. C. S. CELLS WILL GREATLY REDUCE THE PRICE FOR USERS THE DIGITAL ADVANTAGE BOTH P. C. S. AND NEW CELLULAR PHONE SERVICES USE DIGITAL SIGNALS RATHER THAN THE ANALOG FORMAT OF CONVENTIONAL RADIO THAT MAKES SEVERAL SPECTRUM SHARING TRICKS POSSIBLE DIGITAL COMPRESSION SCHEMES FOR EXAMPLE WILL SQUEEZE A CONVERSATION THAT ORDINARILY ACCOUNTS FOR ABOUT SIXTY FOUR KILOBITS PER SECOND OF DATA DOWN TO ABOUT EIGHT KILOBITS PER SECOND NOTES RICHARD GITLIN DIRECTOR OF COMMUNICATIONS SYSTEMS RESEARCH AT A. T. AND T. BELL LABORATORIES IN OTHER WORDS IT WILL ALLOW COMPANIES TO CARRY ABOUT EIGHT TIMES MORE CONVERSATION OVER THE SAME FREQUENCY BANDWIDTH DIGITAL CODING TECHNIQUES ALSO CAN FIT DIFFERENT COMMUNICATIONS SIGNALS INTO THE SAME FREQUENCY SPACE ONE PROPOSED DIGITAL STANDARD CALLED TIME DIVISION MULTIPLE ACCESS TDMA CHOPS A RADIO SIGNAL INTO PIECES THAT ARE IDENTIFIED BY TIME SLOTS LASTING A FRACTION OF A SECOND A RECEIVER FILTERS OUT ALL BUT THE SELECTED TIME SLOT AND REASSEMBLES THE MESSAGE SUPPORTERS OF THIS TECHNIQUE INCLUDING MCCAW CELLULAR COMMUNICATIONS INCORPORATED SAY A SINGLE CELLULAR CHANNEL CAN CARRY THREE TO SEVEN CALLS AT A TIME A NEWER VARIANT CALLED ENHANCED TDMA MAY BRING A NINETEEN FOLD ADVANCE OVER ANALOG TECHNOLOGIES BACKERS PREDICT BUT MANY COMPANIES ARE BACKING A RIVAL DIGITAL TECHNOLOGY CDMA WHICH STANDS FOR CODE DIVISION MULTIPLE ACCESS USES LOW POWERED SIGNALS SPREAD ACROSS A WIDE SWATH OF COMMUNICATIONS FREQUENCIES THIS APPROACH KNOWN AS SPREAD SPECTRUM PROGRAMS EACH PHONE WITH AN IDENTIFYING CODE CONTAINED IN A SIGNAL CALLED PSEUDONOISE THE RECEIVING STATION USES THE CODE TO IDENTIFY AND RECONSTITUTE THE ORIGINAL SIGNAL A PHENOMENON COMPARABLE TO THE WAY AN AMERICAN COULD PICK OUT TWO PEOPLE SPEAKING ENGLISH IN A ROOM FULL OF OTHERS SPEAKING JAPANESE CDMA DEVELOPED BY QUALCOMM INCORPORATED SAN DIEGO IS WIDELY EXPECTED TO INCREASE TRANSMISSON CAPACITY BY A FACTOR OF TEN TO TWENTY ANDREW VITERBI QUALCOMM'S VICE CHAIRMAN AND CHIEF TECHNICAL OFFICER USES THE MORE CONSERVATIVE NUMBER OF A SEVENFOLD IMPROVEMENT ARRAYS OF ANTENNAS ANOTHER APPROACH BEING TESTED BY SOME COMPANIES USES ARRAYS OF ANTENNAS IN EACH CELL RATHER THAN ONE BY SPACING THEM CAREFULLY AND MEASURING WHEN SIGNALS ARRIVE AT EACH SOCALLED ADAPTIVE ANTENNA ARRAYS CAN DISCRIMINATE BETWEEN SIGNALS BASED ON DISTANCE AND DIRECTION ARRAYS WOULD MAKE IT EASIER TO USE THE SAME FREQUENCY SIMULTANEOUSLY IN ADJACENT CELLS SOMETHING TODAY'S SYSTEMS CAN'T DO WITHOUT CREATING INTERFERENCE THAT'S VERY VERY PROMISING SAYS MR. GITLIN OF BELL LABS WE ARE STRONG BELIEVERS THAT THIS TECHNOLOGY WILL ALLOW A HIGH LEVEL OF FREQUENCY REUSE HOPPING AND JUMPING THE OTHER MAJOR STRATEGY IS TO TAP DIFFERENT FREQUENCIES METRICOM INCORPORATED A START UP IN LOS GATOS CALIFORNIA IS ATTRACTING ATTENTION WITH PLANS TO SET UP REGIONAL WIRELESS NETWORKS IN AN UNLICENSED BAND OF FREQUENCIES NOW USED BY CONVENTIONAL CORDLESS TELEPHONES TO AVOID INTERFERING WITH THEM METRICOM USES A DIFFERENT SPREAD SPECTRUM TECHNIQUE CALLED FREQUENCY HOPPING ROBERT DILWORTH THE COMPANY'S CHIEF EXECUTIVE OFFICER SAYS ITS WIRELESS DATA NETWORK DIVIDES A LARGE CHUNK OF RADIO SPECTRUM INTO ONE HUNDRED SIXTY FIVE NARROW CHANNELS PORTABLE COMMUNICATORS USING ITS SERVICE KEEP HOPPING ABOUT EVERY HALF SECOND AMONG CHANNELS THAT AREN'T BEING USED AVOIDING INTERFERENCE WITH CORDLESS PHONES THAT MIGHT BE OPERATING NEARBY PEOPLE SENDING MESSAGES ON THE METRICOM SYSTEM RARELY INTERFERE WITH ONE ANOTHER BECAUSE THE COMPANY HAS DEVELOPED A PROPRIETARY SYSTEM THAT SYNCHRONIZES THE JUMPS SO THAT USERS DON'T LAND ON THE SAME FREQUENCY AT THE SAME TIME METRICOM'S SERVICE IS BEING TESTED AROUND APPLE COMPUTER INCORPORATED'S CORPORATE CAMPUS AND AT STANFORD UNIVERSITY IT PLANS TO START HOOKING UP OTHER PARTS OF THE SAN FRANCISCO BAY AREA THIS YEAR USING LOW POWERED TRANSMITTERS THAT WILL COVER A SQUARE MILE OR SO IN AN URBAN AREA MR. DILWORTH SAYS INFREQUENT FREQUENCIES OTHERS DREAM OF REAL VIRGIN TERRITORY FREQUENCIES SO HIGH THERE IS NO COMPETITION MOST COMMERCIAL COMMUNICATIONS OPERATE BELOW ABOUT TWO GIGAHERTZ ONE REASON IS THAT OPERATING AT HIGHER FREQUENCIES REQUIRES CHIPS MADE OUT OF COSTLY GALLIUM ARSENIDE RATHER THAN SILICON AND RADIO WAVES AT HIGHER FREQUENCIES BEGIN TO ACT MORE LIKE BEAMS OF LIGHT SIGNALS MOVE IN STRAIGHT LINES AND BOUNCE OFF OBJECTS REDUCING THEIR ABILITY TO PENETRATE WALLS BUT GALLIUM ARSENIDE IS FALLING IN PRICE WHILE SILICON CHIPS ARE ASSUMING MORE TOUGH COMMUNICATIONS JOBS MR. VITERBI OF QUALCOMM PREDICTS THAT SOME PERSONAL COMMUNICATORS WILL EVENTUALLY OPERATE IN THE RANGE OF FIVE TO SIX GIGAHERTZ HE SAYS THAT AT LEAST ONE LARGE P. C. S. PROPONENT IS CONSIDERING THAT BAND THAT WILL HAPPEN IN OUR LIFETIME HE SAYS IN A CELEBRATED BREAKTHROUGH MOTOROLA INCORPORATED MANAGED TO DEVELOP A WIRELESS LOCAL AREA NETWORK SYSTEM CALLED ALTAIR THAT OPERATES AT AN IMPRESSIVE EIGHTEEN GIGAHERTZ TO PRODUCE THE HIGH FREQUENCIES AT AN ACCEPTABLE SIZE AND COST THE SCHAUMBURG ILLINOIS COMPANY DEVELOPED AN EXTREMELY FAST GALLIUM ARSENIDE CHIP TO HANDLE A JOB THAT TYPICALLY REQUIRED A MACHINE THE SIZE OF A REFRIGERATOR A SPECIAL SIX SIDED ANTENNA COMPENSATES FOR THE SCATTERING OF RADIO WAVES OFF WALLS AND FURNITURE AN EVEN HIGHER JUMP WAS MADE BY CELLULAR VISION OF NEW YORK A COMPANY THAT PLANS TO COMPETE WITH CABLE T. V. COMPANIES BY DELIVERING VIDEO SIGNALS AT A FREQUENCY OF TWENTY EIGHT GIGAHERTZ THE UNUSUAL TECHNOLOGY WHICH USES CELLS THAT ARE SIX MILES IN DIAMETER DEPENDS ON SIGNALS THAT BOUNCE OFF BUILDINGS AND SLIP THROUGH THE SPACES BETWEEN THEM CUSTOMERS USE AN ANTENNA THAT IS FIVE INCHES SQUARE AND CAN BE ATTACHED TO A WINDOW SHANT HOVNANIAN CELLULAR VISION'S CHIEF EXECUTIVE OFFICER EXPECTS THE SYSTEM ALSO WILL BE USED FOR TWO WAY INTERACTIVE SERVICES AND FOR HIGH SPEED DATA COMMUNICATIONS BELL ATLANTIC CORPORATION ALREADY IS A PARTNER AND CELLULAR VISION PREDICTS OTHER COMPANIES WILL LICENSE ITS TECHNOLOGY FOR OTHER MARKETS AND APPLICATIONS WE ARE TALKING TO HUNDREDS OF POTENTIAL LICENSEES MR. HOVNANIAN SAYS MR. CLARK IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU BRITISH CHEMICALS CONCERN B. O. C. GROUP P. L. C. POSTED A PRETAX LOSS FOR THE FIRST QUARTER ENDED DECEMBER THIRTY FIRST AFTER TAKING A RESTRUCTURING CHARGE OF EIGHTY FIVE MILLION POUNDS ONE HUNDRED TWENTY FOUR POINT ONE MILLION DOLLARS PROFIT FROM ITS HEALTH CARE DIVISION WAS HIT BY A PATENT EXPIRATION IN THE U. S. THE PRETAX LOSS TOTALED EIGHT POINT NINE MILLION POUNDS COMPARED WITH PRETAX EARNINGS OF NINETY POINT EIGHT MILLION POUNDS A YEAR EARLIER SALES ROSE EIGHT POINT SIX PERCENT TO EIGHT HUNDRED FORTY THREE POINT FIVE MILLION POUNDS FROM SEVEN HUNDRED SEVENTY SIX POINT EIGHT MILLION POUNDS OPERATING PROFIT FROM HEALTH CARE PLUNGED TO FOURTEEN MILLION POUNDS FROM THIRTY TWO POINT SIX MILLION POUNDS AS THE PATENT OF ITS LEADING PRODUCT THE FORANE ANAESTHETIC EXPIRED IN JANUARY OF LAST YEAR IN THE U. S. THE EIGHTY FIVE MILLION POUND PROVISION FIRST ANNOUNCED JANUARY TWENTIETH INCLUDES A TWENTY FIVE MILLION POUND CHARGE FOR THE RESTRUCTURING OF THE COMPANY'S GASES BUSINESS WHILE THE REST WILL GO TOWARD THE REVAMPING THE HEALTH CARE OPERATIONS ABOARD A LEARJET SOARING OVER THE COLORADO ROCKIES JEROME B. YORK REACHES FOR WHAT IS SUPPOSED TO BE THE ULTIMATE CONVENIENCE FOR IMPORTANT AND PRESSED EXECUTIVES THE AIRPLANE TELEPHONE QUICKLY HOWEVER MR. YORK THE CHIEF FINANCIAL OFFICER OF INTERNATIONAL BUSINESS MACHINES CORPORATION BECOMES FRUSTRATED AS THE PHONE PROVES TO BE ANYTHING BUT A CONVENIENCE HE PUSHES BUTTONS FURIOUSLY IN A VAIN ATTEMPT TO DIAL THE NUMBER HE SLAMS DOWN THE RECEIVER AFTER NUMEROUS ATTEMPTS MR. YORK ASKS THE COCKPIT CREW FOR HELP THEY FAIL TOO THEN HE SITS BACK AND GIVES UP IN HIS HANDS HE HOLDS THE LIST OF NINE PHONE CALLS HE IS SUPPOSED TO RETURN THE LIST IS FROM HIS AIDE WHO FORTUNATELY FOR HER CALLED THE OFFICE FROM A PAY TELEPHONE AT THE LAST STOP QUOTE DAMN PHONE QUOTE HE MUMBLES IN DISGUST FOR YEARS NOW ON BOARD PHONES HAVE PROMISED SOME OF THE MOST IMPRESSIVE WHIZ BANG TECHNOLOGY AND DELIVERED SOME OF THE LAMEST RESULTS AT THE EXORBITANT RATE OF TWO DOLLARS AND FIFTY CENTS PER MINUTE PLUS INITIAL HOOKUP CHARGES THEY GARBLE WORDS DISCONNECT CALLS OR FAIL TO MAKE CONNECTIONS AT ALL THEN THERE'S THE PRIVACY QUESTION SINCE NOTHING APPROACHING THE DISCREETNESS OF A PHONE BOOTH EXISTS ON COMMERCIAL AIRLINERS EVERYBODY SITTING WITHIN TEN OR TWENTY FEET GETS TO LISTEN IN AS THE CALLER TRIES TO BE HEARD OVER THE JET'S ENGINES AND THE WHOOSHING THAT SEEMS TO EMANATE FROM EVERYWHERE THE REAL VISION OF THIS IS DIFFERENT FROM WHAT WE'RE ACTUALLY SEEING SAYS BARRY GOODSTADT A WIRELESS TECHNOLOGY CONSULTANT AT ARTHUR D. LITTLE INCORPORATED CAMBRIDGE MASSACHUSETTS IT'S NOT CLEAR TO ME HOW MUCH MONEY ANYBODY IS GENERATING OUT OF THIS STUFF NOBODY IS USING THEM MR. GOODSTADT IS BEING POLITE GIVEN HIS LITANY OF COMPLAINTS HE DOESN'T WANT TO TALK ON A PLANE OR A TRAIN FOR THAT MATTER WHEN ANOTHER PASSENGER IS SITTING RIGHT NEXT TO HIM HE DOESN'T EVEN LIKE USING HIS LAPTOP COMPUTER AND THE QUALITY IS SO POOR AS TO MAKE USING ONE UNPLEASANT MOREOVER MR. GOODSTADT ISN'T SURE IMPROVEMENTS THE INDUSTRY PROMISES WILL BE MUCH BETTER PHONE EXECUTIVES SAY HE SHOULDN'T WORRY THEY PROMISE THE NEXT GENERATION OF AIRPLANE PHONES WILL BE MUCH MUCH BETTER THEY TALK ABOUT VIRTUAL OFFICES IN THE SKY WHERE BUSINESS FLIERS CAN SEND AND RECEIVE FAXES PLUG IN THEIR LAPTOPS AND THEN SELECT AND WATCH VIDEOS THERE MAY EVEN BE A SERVICE BY WHICH SOMEBODY CAN CALL A CENTRAL NUMBER WHICH WILL THEN LOCATE YOU ON THE AIRPLANE AND THE PHONE AT YOUR SEAT WILL RING AND THEY SAY IT EVENTUALLY WILL ALL BE CHEAPER THAN IT IS TODAY QUOTE THERE ARE UNLIMITED OPPORTUNITIES QUOTE SAYS JOHN GOEKEN A FOUNDER OF M. C. I. COMMUNICATIONS CORPORATION WHO NOW HEADS INFLIGHT PHONE CORPORATION AN AIRPLANE PHONE MAKER IN OAKBROOK TERRACE ILLINOIS NO DOUBT IT IS PRETTY INCREDIBLE TO BE ABLE TO MAKE A PHONE CALL AT ALL WHILE SITTING THIRTY TWO THOUSAND FEET OFF THE GROUND AND FLYING THROUGH THE AIR AT HUNDREDS OF MILES AN HOUR EVEN IF THE CONNECTION ISN'T SO GREAT A QUICK CALL TO COLLEAGUES IN THE NEXT CITY TO SAY THE FLIGHT IS DELAYED CAN BE HANDY A BANKER WHO TRAVELS CONSTANTLY AND LIVES NEAR LA GUARDIA AIRPORT IN NEW YORK GETS A KICK OUT OF CALLING HOME TO SAY HONEY I'M FLYING OVER THE HOUSE NOW SEND THE KIDS OUT TO HAVE A LOOK AND DESPITE THE BAD CONNECTIONS SOME PEOPLE DO MANAGE TO DO BUSINESS THIS WAY ONE EXECUTIVE SAYS HE ONCE CONDUCTED AN HOUR LONG CONFERENCE CALL FROM HIS PLANE SEAT THOUGH HE DID GET DISCONNECTED SEVERAL TIMES AND THE BILL DID RUN SEVERAL HUNDRED DOLLARS EVEN MR. GOODSTADT OF ARTHUR D. LITTLE CONCEDES THE PHONES COME IN HANDY HE RECALLS THAT HE HAS USED AN AIRPLANE PHONE TWICE IN HIS EXTENSIVE TRAVELS ONCE HE WAS CAUGHT IN A SNOWSTORM ON THE RUNWAY AND WANTED TO LET HIS CHILDREN KNOW WHAT HAD HAPPENED TO HIM ANOTHER TIME HE WAS LATE FOR A MEETING STILL AIRPLANE TELEPHONES AS WE NOW KNOW THEM ARE BASED ON AN ANTIQUATED ANALOG SYSTEM G. T. E. AIRFONE A SUBSIDIARY OF G. T. E. CORPORATION STAMFORD CONNECTICUT MAKES MOST OF THEM A FEW SMALL COMPANIES CATER TO PRIVATE JETS LIKE I. B. M.'S LEAR G. T. E. BROUGHT THE TECHNOLOGY TO MARKET IN NINETEEN EIGHTY FOUR AND WAS GIVEN THE EXCLUSIVE LICENSE BY THE FEDERAL COMMUNICATIONS COMMISSION TO INSTALL THE PHONES ON PLANES OF UNITED CONTINENTAL AND AMERICA WEST AIRLINES AND THE NEW YORK WASHINGTON SHUTTLE NOW OWNED BY U. S. AIR GROUP BUT BECAUSE THE ANALOG GROUND STATIONS USED BY MOST AIRPLANE PHONES WERE INSTALLED OVER A DECADE AGO THEY WERE SOON OUTDATED IN TERMS OF THEIR CAPABILITIES CALLS ARE EASILY DISCONNECTED AS THE PLANE MOVES AWAY FROM THE GROUND STATION THAT ORIGINALLY LINKED UP THE CALL BECAUSE THERE'S NO WAY TO SWITCH THEM YOU HAVE TO KEEP YOUR CALL PRETTY SHORT OR SIMPLY REDIAL WHEN THE PLANE MOVES FROM THE RANGE OF ONE GROUND STATION TO THE NEXT IN ADDITION ANALOG CALLS ARE FULL OF INTERFERENCE FROM AIR WHOOSHING IN THE BACKGROUND BECAUSE THE SYSTEM HAS NO WAY TO SORT THE NOISE OUT BUT THE AIRPLANE PHONE IS NOW GETTING AN OVERHAUL AS THE BUSINESS EMBARKS ON A DIGITAL MAKEOVER G. T. E. IS CONVERTING ALMOST ALL OF ITS SYSTEMS TO DIGITAL IN ADDITION ITS NEW COMPETITORS SUCH AS INFLIGHT PHONE AND MCCAW CELLULAR COMMUNICATIONS INCORPORATED'S CLAIRCOM UNIT WERE GRANTED ACCESS TO THE SKIES IN NINETEEN NINETY ONE BY THE F. C. C. AND ARE SKIPPING THE ANALOG PHASE ENTIRELY GOING RIGHT TO DIGITAL DIGITAL PHONE SYSTEMS WILL TRANSLATE SOUND INTO ELECTRONIC PULSES THAT REGISTER IN GROUND STATION COMPUTER SYSTEMS AS ZEROS AND ONES A CALL HANDOFF WILL PASS THE PULSES FROM ONE GROUND STATION TO ANOTHER AS IN A CELLULAR NETWORK THAT TRANSFERS CALLS TO DIFFERENT CELLS AS THE CAR IS DRIVING ALONG A DOPPLER EFFECT DETECTS WHEN THE SIGNAL IS WEAKENING THE SYSTEM THEN BEGINS PHONING THE NEXT GROUND STATION TO TRANSFER THE CALL WHEN THE PLANE GETS CLOSE ENOUGH AND MOST IMPORTANT BEFORE THE CALL IS DISCONNECTED THE TECHNOLOGY IS SO SOPHISTICATED THAT IT CAN SWITCH CALLS BACK AND FORTH BETWEEN GROUND STATIONS WHEN NECESSARY SO AS A FLIER APPROACHES MOUNTAIN RAINIER IT WILL SWITCH THE CALL FROM ITS ORIGINAL BASE TO A BETTER LOCATED ONE WHILE THE PLANE IS PASSING THE MOUNTAIN THEN SWITCH BACK TO THE FIRST GROUND STATION THE ONLY SOUND THE CALLER SHOULD HEAR IS A CLICKING AS THE SWITCH OFF OCCURS IF THAT IS THE SYSTEM WORKS A SECOND BIG ADVANTAGE OF THE DIGITAL TECHNOLOGY IS ITS ABILITY TO SCREEN OUT BACKGROUND NOISE THE GROUND STATION COMPUTERS ARE PROGRAMMED TO RECOGNIZE VOICES AS OPPOSED TO THINGS LIKE STATIC AND WHOOSHING THEY SCREEN OUT THOSE UNWANTED SOUNDS SIMILARLY THE GROUND COMPUTERS ARE PROGRAMMED TO RECOGNIZE WORD PATTERNS IF THERE'S A BLIP THEY FILL IN THE PROPER SOUNDS WITH A SYNTHESIZED VOICE THUS MAKING BROKEN UP CONVERSATIONS WHOLE AGAIN THIS BRINGS UP TWO OF MR. GOODSTADT'S CONCERNS ABOUT DIGITAL HE SAYS THAT THE SYNTHETIC VOICE GIVES CALLS A METALLIC QUALITY AND THAT THE TECHNOLOGY CAUSES THE KIND OF VOICE DELAY THAT MAKES MANY USERS UNCOMFORTABLE IT ALL HAS A LOT OF PROMISE WILL IT EVER BE PERFECT MYRA HOGAN AN IN FLIGHT TESTER FOR G. T. E.'S NEW GENSTAR DIGITAL SYSTEM FLIES THOUSANDS OF MILES WORKING OUT THE KINKS CALLING ONE DAY FROM THE DELTA SHUTTLE TO BOSTON SHE SOUNDS A LITTLE UNDERWATER BUT SAYS SHE ISN'T YELLING AND THE WHOLE AIRCRAFT ISN'T STARING AT HER IN FACT THINGS ARE GOING PRETTY WELL UNTIL FIVE MINUTES INTO THE CONVERSATION WHEN THERE'S SOME CLICKING AND MS. HOGAN'S CALL IS DISCONNECTED AFTER CALLING BACK A FEW MINUTES LATER SHE ATTRIBUTES THE PROBLEM TO A HANDOFF HITCH AS SHE MOVED FROM THE LA GUARDIA TO THE STATEN ISLAND GROUND STATION I'M REALLY SURPRISED SHE SAYS THAT'S NEVER HAPPENED BEFORE MS. HAYS IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU MEXPETROL S. A. A CONSORTIUM OF PUBLIC AND PRIVATE MEXICAN COMPANIES IS NEGOTIATING THE PURCHASE OF CUBA'S CIENFUEGOS REFINERY ACCORDING TO PEOPLE CLOSE TO THE TALKS MEXPETROL IS TWENTY FIVE PERCENT OWNED BY STATE OIL MONOPOLY PETROLEOS MEXICANOS CUBA'S CIENFUEGOS REFINERY HAS A CAPACITY TO REFINE ABOUT SIXTY THOUSAND BARRELS A DAY OF CRUDE HOWEVER HALF THE REFINERY NEVER WAS BUILT THE REFINERY IS SAID TO BE RUNNING AT ABOUT TWENTY FIVE THOUSAND BARRELS A DAY BRITISH TELECOMMUNICATIONS P. L. C. SAID PRETAX PROFIT FOR THE THIRD QUARTER ENDED DECEMBER THIRTY FIRST DECLINED ZERO POINT ONE PERCENT TO SIX HUNDRED NINETY EIGHT MILLION POUNDS ONE POINT ZERO TWO BILLION DOLLARS FROM SEVEN HUNDRED FIVE MILLION A YEAR EARLIER THE FIGURES EXCLUDE ONE HUNDRED FORTY TWO MILLION POUNDS OF REDUNDANCY CHARGES IN THE LATEST QUARTER COMPARED WITH SEVENTEEN MILLION POUNDS A YEAR EARLIER B. T. SAID IT EXPECTS FURTHER QUOTE SIGNIFICANT REDUNDANCY COSTS QUOTE IN THE FOURTH QUARTER THIS WEEK B. T. CUT TELEPHONE CHARGES BY ELIMINATING HIGHER RATES FOR PEAK PERIODS SIR IAN VALLANCE CHAIRMAN SAID YESTERDAY THERE WOULD BE MORE PRICE CUTS ON THE WAY DUE TO COMPETITION AND THAT COSTS WOULD HAVE TO BE FURTHER CONTROLLED REPRESENTATIVE DAN ROSTENKOWSKI REIMBURSED THE GOVERNMENT EIGHTY TWO THOUSAND DOLLARS FOR POSSIBLY IMPROPER PURCHASES OVER A SIX YEAR PERIOD FROM THE HOUSE OFFICE SUPPLY SERVICE MR. ROSTENKOWSKI CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE SAID HIS PAYMENT LAST WEEK COVERS SOME ITEMS THAT WERE USED FOR CONGRESSIONAL FUNCTIONS BUT WHOSE PURPOSE COULDN'T BE DOCUMENTED SEPARATELY A FORMER AIDE TO THE CHICAGO DEMOCRAT HAS BEEN CITED FOR CONTEMPT FOR REFUSING TO TESTIFY BEFORE A GRAND JURY INVESTIGATING ALLEGATIONS OF FINANCIAL IRREGULARITIES BY THE CONGRESSMAN THE FORMER AIDE CELESTE GABINSKI WAS GIVEN TEN DAYS TO APPEAL THE CONTEMPT CITATION GIVEN TO HER THIS WEEK BY FEDERAL DISTRICT CHIEF JUDGE JOHN GARRETT PENN IN WASHINGTON ACCORDING TO PEOPLE FAMILIAR WITH THE CASE CONCERNING THE SUPPLY SERVICE MR. ROSTENKOWSKI SAID QUOTE WHILE THIS MEANS THAT I AM PAYING FOR PURCHASES WHICH WERE IN MANY CASES PART OF MY OFFICIAL ACTIVITIES I AM WILLING TO DO SO SINCE MY INTEGRITY IS A LOT MORE IMPORTANT THAN THE MONEY QUOTE THE SUPPLY SERVICE SELLS GOODS FOR CONGRESSIONAL USE AT DISCOUNTED PRICES PROSECUTORS HAVE SUBPOENAED INFORMATION FROM THE SUPPLY SERVICE REGARDING THE REIMBURSEMENT ROBERT BENNETT MR. ROSTENKOWSKI'S LAWYER SAID THIS IS EVIDENCE THAT HE WANTS TO DO THE RIGHT THING AND THAT DOLLARS AND CENTS IS NOT AN ISSUE TO HIM HE ERRED ON THE SIDE OF GIVING MONEY BACK RATHER THAN TRYING TO ARGUE THE POINT FEDERAL PROSECUTORS HAVE BEEN CONDUCTING A LENGTHY INVESTIGATION INTO SEVERAL ALLEGATIONS INCLUDING CHARGES THAT MR. ROSTENKOWSKI IMPROPERLY RECEIVED THOUSANDS OF DOLLARS FROM THE HOUSE POST OFFICE BY CONVERTING STAMPS TO CASH AND THAT HE FRAUDULENTLY HAD GHOST EMPLOYEES PEOPLE ON HIS CONGRESSIONAL OFFICE PAYROLL WHO DIDN'T WORK MR. ROSTENKOWSKI WHO HAS DENIED ANY WRONGDOING FACES A TOUGH PRIMARY ELECTION VOTE NEXT MONTH HE IS A KEY PLAYER IN PRESIDENT CLINTON'S EFFORTS TO RESTRUCTURE THE NATION'S HEALTH CARE SYSTEM IF INDICTED HE WOULD LOSE HIS CHAIRMANSHIP UNTIL CLEARED OF THE CHARGES MRS. GABINSKI WHO REPORTEDLY REMAINED ON THE DEMOCRAT'S CHICAGO PAYROLL AFTER SHE HAD STOPPED WORKING FOR HIM WAS GIVEN IMMUNITY FROM PROSECUTION IN EXCHANGE FOR HER TESTIMONY SHE TESTIFIED ONCE BUT WHEN CALLED TO TESTIFY AGAIN SHE REFUSED LAWYERS WORKING WITH MRS. GABINSKI'S ATTORNEY SAID SOME FACTS IN THIS ARTICLE WERE INACCURATE BUT WOULDN'T SAY WHAT THEY WERE A SPOKESMAN FOR THE U. S. ATTORNEY'S OFFICE SAID HE HAD NO COMMENT THROUGH HER LAWYER MRS. GABINSKI ARGUED THAT SHE SHOULD BE GRANTED IMMUNITY FROM PROSECUTION FOR PERJURY BEFORE TESTIFYING AGAIN A JUDGE MAY ORDER SOMEONE WITH IMMUNITY WHO NONETHELESS REFUSES TO TESTIFY TO REMAIN IN JAIL UNTIL HE OR SHE TESTIFIES IN DECEMBER THE CHICAGO SUN TIMES REPORTED THAT MRS. GABINSKI REMAINED ON THE ROSTENKOWSKI PAYROLL FOR FIVE YEARS RECEIVING SEVENTY NINE THOUSAND DOLLARS AFTER OSTENSIBLY QUITTING HER JOB THE WIFE OF A ROSTENKOWSKI PROTEGE CHICAGO ALDERMAN TERRY GABINSKI MRS. GABINSKI WORKED IN THE ROSTENKOWSKI OFFICE FROM NINETEEN EIGHTY ONE TO NINETEEN EIGHTY SEVEN BUT REPORTEDLY WAS ON THE PAYROLL UNTIL MAY NINETEEN NINETY TWO WHEN IT WAS REPORTED THAT A GRAND JURY WAS INVESTIGATING THE CONGRESSMAN'S FINANCES A ROSTENKOWSKI EMPLOYEE SAID MRS. GABINSKI DID WORK AT HOME MR. GABINSKI SUCCEEDED MR. ROSTENKOWSKI AS CHICAGO'S THIRTY SECOND WARD DEMOCRATIC COMMITTEEMAN A GRAND JURY HAS SUBPOENAED THE WARD'S FINANCIAL RECORDS ACCORDING TO THE CHICAGO TRIBUNE MR. ROSTENKOWSKI HAS USED MORE THAN FIFTY SIX THOUSAND DOLLARS FROM HIS HUGE CAMPAIGN WAR CHEST TO PAY LEGAL EXPENSES FOR MRS. AND MR. GABINSKI JAMES COLE THE GABINSKIS' LAWYER SAID HE HAD NO COMMENT ON MATTERS INVOLVING THEM MR. ROSTENKOWSKI ONCE HAD A CHICAGO OFFICE IN THE SAME BUILDING WHERE MR. GABINSKI'S AND THE WARD ORGANIZATION'S OFFICES ARE LOCATED A BUILDING THE SUNTIMES SAID WAS OWNED BY THE CONGRESSMAN'S FAMILY STILL LOOKING FOR THE ULTIMATE VALENTINE'S DAY GIFT TRY A NINETEEN THOUSAND SQUARE FOOT PINK MANSION WITH A WATER GARDEN AND A FLEET OF PINK CADILLACS MARY KAY ASH FOUNDER OF THE COSMETICS COMPANY THAT BEARS HER NAME SAID YESTERDAY SHE IS PUTTING HER THREE STORY DALLAS HOME ON THE AUCTION BLOCK THE HOUSE PATTERNED AFTER THE PALACE IN VERSAILLES INCLUDES THREE FRONT YARD FOUNTAINS PINK CHANDELIERS FROM VENICE AND A SEA OF OTHER PINK FURNISHINGS FROM PINK TOILET SEATS AND PINK SINKS TO PINK MARBLE FLOORS QUOTE IT LOOKS JUST LIKE CAESARS PALACE QUOTE SAYS WILLIAM BONE AN EXECUTIVE AT THE NATIONAL AUCTION GROUP IN HOUSTON IT'S VERY TASTEFULLY DONE MR. BONE WILL CONDUCT THE AUCTION WHICH WILL BE OPEN TO THE PUBLIC IN APRIL AT TWENTY FIVE DOLLARS A PERSON IT WILL INCLUDE INTERIOR FURNISHINGS AND MOST LIKELY SOME OF MS. ASH'S TRADEMARK PINK CADILLACS THE MILLIONAIRE'S FIRST PINK CADDIE A NINETEEN SIXTY EIGHT MODEL SITS ON THE PROPERTY BUT WON'T BE INCLUDED MS. ASH WHO WILL ATTEND AND OVERSEE THE AUCTION MOVED OUT OF THE HOUSE YEARS AGO AND HAS RECENTLY USED THE MANSION AS A RETREAT FOR CUSTOMERS AND EMPLOYEES DESPITE ITS LOCATION IN DALLAS'S TONY PRESTON HOLLOW NEIGHBORHOOD AMERICAN AIRLINES CHIEF ROBERT CRANDALL LIVES IN THE AREA AND ROSS PEROT IS JUST AROUND THE CORNER THE ASH ESTATE ON THE MARKET FOR TWO YEARS HAS HARDLY BEEN A HOT PROPERTY INDEED A SLOW TO RECOVER DALLAS REAL ESTATE MARKET AND LINGERING WOUNDS FROM TEXAS' NINETEEN EIGHTIES BUYING BINGE HAVE MADE HIGH PROFILE HOME AUCTIONS SOMEWHAT TRENDY AMONG THIS CITY'S JET SET JUST AS FILING FOR PERSONAL BANKRUPTCY TOOK ON A BIZARRE CACHET DURING THE BUST NORMAN BRINKER A RESTAURATEUR SOLD HIS ONE POINT ONE MILLION DOLLARS DALLAS MANSION AT AUCTION LAST YEAR AND A FEW WEEKS LATER BOUGHT A NEW PRESTON HOLLOW HOME ALSO AT AUCTION AT DOUBLE THE PRICE OF THE FIRST AND YESTERDAY MR. BONE'S COMPANY AUCTIONED OFF A ONE THOUSAND SEVEN HUNDRED ACRE RANCH ONCE OWNED BY CONNIE C. CHIP ARMSTRONG JUNIOR A ONE TIME TEXAS HIGHFLIER WHOSE TAX PROCESSING COMPANY FILED FOR BANKRUPTCY PROTECTION IN NINETEEN NINETY ONE MR. BONE PREDICTS MS. ASH'S MANSION COULD FETCH THREE MILLION DOLLARS BUT IT'S NOT AS THOUGH SHE NEEDS THE MONEY TEXAS MONTHLY MAGAZINE PEGS THE NET WORTH OF MS. ASH AND HER SON RICHARD RAYMOND ROGERS THE COMPANY'S CHAIRMAN AT THREE HUNDRED TWENTY MILLION DOLLARS FLEMING COMPANIES TAKING A HEAVY HIT FOR RESTRUCTURING AND CONSOLIDATION COSTS POSTED A SLIGHTLY WORSE THAN PROJECTED LOSS FOR ITS FOURTH QUARTER ENDED DECEMBER TWENTY FIFTH THE OKLAHOMA CITY FOOD DISTRIBUTION CONCERN REPORTED A NET LOSS FOR THE QUARTER OF FORTY NINE POINT THREE MILLION DOLLARS OR ONE DOLLAR AND THIRTY FOUR CENTS A SHARE COMPARED WITH NET INCOME OF TWENTY FIVE MILLION DOLLARS OR SIXTY EIGHT CENTS A SHARE A YEAR EARLIER THE MORE RECENT QUARTER INCLUDED A ONE HUNDRED ONE POINT THREE MILLION DOLLAR PRETAX CHARGE FOR CONSOLIDATION AND RESTRUCTURING AND A TWO POINT THREE MILLION DOLLAR CHARGE FOR EARLY RETIREMENT OF DEBT SALES FOR THE QUARTER ROSE ONE POINT SIX PERCENT TO THREE POINT ONE FIVE BILLION DOLLARS FROM THREE POINT ONE OH BILLION DOLLARS A YEAR AGO FOR THE YEAR FLEMING REPORTED A SIXTY NINE PERCENT DROP IN NET INCOME TO THIRTY FIVE POINT TWO MILLION DOLLARS OR NINETY SIX CENTS A SHARE FROM ONE HUNDRED THIRTEEN MILLION DOLLARS OR THREE DOLLARS AND SIXTEEN CENTS A SHARE IN NINETEEN NINETY TWO SALES FOR THE YEAR GREW ONE POINT FIVE PERCENT TO THIRTEEN POINT OH NINE BILLION DOLLARS FROM TWELVE POINT EIGHT NINE BILLION DOLLARS THE PREVIOUS YEAR ROBERT E. STAUTH PRESIDENT AND CHIEF EXECUTIVE BLAMED THE SMALL SALES GAINS ON INTENSE COMPETITION AND LACK OF FOOD PRICE INFLATION HE SAID THE COMPANY PLANS TO CONTINUE CONSOLIDATING INTO LARGER DISTRIBUTION CENTERS QUOTE AND TO ELIMINATE FUNCTIONS AND OPERATIONS THAT DO NOT ADD VALUE QUOTE NEW YORK TIMES COMPANY REPORTED A FOURTH QUARTER NET LOSS DUE TO A NUMBER OF ONE TIME CHARGES BUT TURNED IN OPERATING PROFIT THAT TOPPED MOST ANALYSTS' ESTIMATES THE PUBLISHING COMPANY HAD A LOSS OF TWENTY FOUR POINT ONE MILLION DOLLARS OR TWENTY THREE CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH A NET LOSS OF THREE POINT SEVEN MILLION DOLLARS OR FIVE CENTS A SHARE A YEAR EARLIER REVENUE FOR THE QUARTER ROSE THIRTY SIX PERCENT TO SIX HUNDRED THIRTY SIX MILLION DOLLARS FROM FOUR HUNDRED SIXTY EIGHT POINT TWO MILLION DOLLARS BOOSTED PARTLY BY THE OCTOBER NINETEEN NINETY THREE ACQUISITION OF THE BOSTON GLOBE NEW YORK TIMES COMPANY HAD ALREADY FOREWARNED ANALYSTS ABOUT THE FOURTH QUARTER'S PRETAX CHARGE OF THIRTY MILLION DOLLARS TO COVER SEVERANCE PAY AND RELATED COSTS FOR A PLANNED WHITE COLLAR STAFF CUTBACK THERE WERE SEVERAL OTHER MINOR CHARGES IN THE QUARTER PLUS AN UNEXPECTED FORTY SEVEN MILLION DOLLAR AFTER TAX CHARGE EFFECTIVELY A WRITE DOWN OF ASSETS IN THE COMPANY'S FOREST PRODUCTS GROUP THE COMPANY OWNS FIFTY PERCENT OF THREE PAPER MILLS AND SAID IT IS REVALUING THE MILLS BASED ON CURRENT MARKET CONDITIONS INCLUDING A WORLD WIDE NEWSPRINT GLUT LOOKING PAST THE SHORT TERM CHARGES ANALYSTS SAW EVIDENCE OF A SOLID TURNAROUND IN ADVERTISING SALES QUOTE WE BELIEVE THE WORST IS CERTAINLY OVER FOR THE NEW YORK TIMES NEWSPAPER COMPANY QUOTE SAID KENNETH BERENTS MEDIA ANALYST WITH WHEAT FIRST BUTCHER AND SINGER IN RICHMOND VIRGINIA LANNY BAKER MEDIA ANALYST WITH SALOMON BROTHERS CITED AN INCREASE OF ALMOST EIGHT PERCENT IN ADVERTISING LINAGE AT THE TIMES FOR THE FOURTH QUARTER WHEREAS AD LINAGE FOR THE FULL YEAR ROSE ONLY ONE PERCENT AT THE BOSTON GLOBE AD LINAGE ROSE NEARLY TEN PERCENT IN THE QUARTER OPERATING PROFIT AT THE NEWSPAPER DIVISION WAS UP FIFTY PERCENT EVEN AFTER THE AMORTIZATION AND DEPRECIATION FROM THE GLOBE ACQUISITION SAID MR. BAKER WHICH SHOWS THAT CASH FLOWS ARE PRETTY DARN STRONG ALSO OPERATING PROFIT DOUBLED IN THE COMPANY'S MAGAZINE GROUP FOR THE QUARTER TO FOUR POINT NINE MILLION DOLLARS FROM TWO POINT FOUR MILLION DOLLARS AND OPERATING PROFIT ALSO ROSE IN THE BROADCAST SLASH INFORMATION SERVICES GROUP TO FIVE POINT EIGHT MILLION DOLLARS FROM FOUR POINT ONE MILLION DOLLARS FOR THE FULL YEAR NEW YORK TIMES COMPANY REPORTED NET INCOME OF SIX POINT ONE MILLION DOLLARS OR SEVEN CENTS A SHARE COMPARED WITH A NET LOSS OF FORTY FOUR POINT SEVEN MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE THE YEAR AGO FIGURES INCLUDE A PRETAX LOSS OF FIFTY THREE POINT EIGHT MILLION DOLLARS OR FORTY SEVEN CENTS A SHARE DUE TO THE CLOSING OF THE GWINNETT GEORGIA DAILY NEWS REVENUE FOR NINETEEN NINETY THREE ROSE TO TWO POINT OH TWO BILLION DOLLARS FROM ONE POINT SEVEN SEVEN BILLION DOLLARS DURIRON COMPANY DAYTON OHIO RAISED ITS QUARTERLY DIVIDEND TO FIFTEEN AND THREE QUARTERS CENTS FROM FIFTEEN CENTS PAYABLE MARCH ELEVENTH TO SHAREHOLDERS OF RECORD FEBRUARY TWENTY FIFTH THE MAKER OF PUMPS AND VALVES ALSO ANNOUNCED A THREE FOR TWO STOCK SPLIT PAYABLE MARCH TWENTY FIFTH TO HOLDERS OF RECORD FEBRUARY TWENTY FIFTH ON A POST SPLIT BASIS THE CASH DIVIDEND WAS INCREASED TO TEN POINT FIVE CENTS A SHARE FROM TEN CENTS A SHARE DURIRON CURRENTLY HAS TWELVE POINT SIX MILLION SHARES OUTSTANDING IN A RECENT MARKET TEST FOR NEW WIRELESS POCKET PHONES PACIFIC TELESIS GROUP ENGINEERS STUMBLED UPON SOMETHING UNEXPECTED BAD MANNERS THE PHONE COMPANY BASED IN SAN FRANCISCO HAD ASKED EMPLOYEES OF VARIAN CHROMATOGRAPHY SYSTEMS A MAKER OF CHEMICAL ANALYSIS INSTRUMENTS IN SAN FRANCISCO TO SEE WHETHER THE PHONES INCREASED EMPLOYEE EFFICIENCY VARIAN FOUND THAT THEY DID EXCEPT IN MEETINGS QUOTE PEOPLE GREW SO ATTACHED AND DEPENDENT ON THEIR HANDSETS THAT THEY WOULD TAKE THEM INTO MEETINGS AND ANSWER THEM QUOTE RECALLS PAT IRELAND A VARIAN MANAGER THE PRACTICE SHE SAYS WAS VERY DISTRACTING AND THE COMPANY EVENTUALLY PROHIBITED EMPLOYEES FROM CARRYING THE PHONES INTO MEETINGS THE CELLULAR PHONE IS NO LONGER A TOY FOR THE RICH AND OSTENTATIOUS AS MILLIONS OF CONSUMERS NOW CARRY THEM FOR BOTH BUSINESS AND PERSONAL USE BUT THE ABILITY TO MAKE AND RECEIVE PHONE CALLS JUST ABOUT ANYWHERE IS STRAINING THE NORMS OF POLITE BEHAVIOR PEOPLE THINK THAT JUST BECAUSE THEY HAVE A NEW TECHNOLOGY THERE DON'T HAVE TO BE ANY RULES SAYS JUDITH MARTIN A. K. A. MISS MANNERS THE SELF STYLED GUARDIAN OF GOOD BEHAVIOR BUT ETIQUETTE HAS TO KEEP UP WITH TECHNOLOGY SO CELLULAR PHONE USERS WILL HAVE TO ADAPT TO PROD THE PROCESS ALONG SHE HAS WRITTEN A BOOKLET MISS MANNERS' GUIDE TO THE PERFECTLY PROPER USE OF CELLULAR TELEPHONES CLEARLY GUIDANCE CAN'T COME QUICKLY ENOUGH ALREADY THE WORLD IS SPLITTING INTO USERS AND NONUSERS WITH A HOSTILITY THAT THREATENS SOON TO RIVAL THAT BETWEEN SMOKERS AND NONSMOKERS ASK NONUSERS ABOUT CELLULAR PHONES AND THEY INSTANTLY REEL OFF A LIST OF OFFENSES THEY TALK OF CELLULAR PHONE USERS BLITHELY MAKING CALLS DURING CONCERTS AT MOVIES OR WHILE WAITING FOR A PARTNER TO COMPLETE A PUTT DURING A ROUND OF GOLF THEY SNEER AT THOSE WHO THINK NOTHING OF WHIPPING OUT A POCKET PHONE IN THE MIDDLE OF A SOCIAL EVENT INCLUDING DINNER TO CONCLUDE SOME UNFINISHED BUSINESS AND THEY DISGUSTEDLY TELL OF MEETINGS THAT ARE INTERRUPTED BY THE SOUND OF A RINGING PHONE CAUSING EXECUTIVES TO SIMULTANEOUSLY GRAB THEIR JACKET POCKETS TO SEE IF SOMEONE'S TRYING TO REACH THEM BECAUSE THEY ARE SUCH HEAVY USERS BUSINESS EXECUTIVES CAN BE SOME OF THE WORST OFFENDERS WHEN IT COMES TO PROPER CELLULAR ETIQUETTE MANY EXECUTIVES WHO HAVE MASTERED THE WALKING TALKING COMBINATION APPEAR TO SUCCUMB TO A MODERN COROLLARY OF PARKINSON'S LAW WORK EXPANDS TO FILL THE COMMUNICATIONS AVAILABLE FOR IT CONSIDER ROBERT CONHEIM SENIOR COUNSEL FOR THE CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD A STATE AGENCY IN SACRAMENTO CALIFORNIA MR. CONHEIM WHO DESCRIBES HIMSELF AS AN QUOTE INSUFFERABLE TECHNOFREAK QUOTE HAS A BUSINESS CARD WITH FIVE NUMBERS INCLUDING THAT OF HIS PAGER FAX AND CAR PHONE SOME MONTHS AGO HE RECALLS HE RECEIVED A BUSINESS CALL ON HIS CELLULAR PHONE IN THE MIDDLE OF A FEDERAL SEMINAR ON WASTE MANAGEMENT AND DISTURBED VIRTUALLY EVERYONE OTHER TIMES HE SAYS HIS WIFE COMPLAINS THAT INSTEAD OF TALKING TO HER OR THEIR CHILDREN HE TALKS BUSINESS ON THE CAR PHONE SHE SAYS I'M DRIVING HER CRAZY MR. CONHEIM SAYS MR. CONHEIM BELIEVES THAT THE WORST BREACH OF CELLULAR ETIQUETTE AND ONE THAT HE OFTEN IS GUILTY OF IS TO DRIVE AND TALK AT THE SAME TIME ESPECIALLY IN A STICK SHIFT VEHICLE YOU WONDER HOW MUCH DRIVING IS BEING DONE HE SAYS BUT THEN HERE I AM THE POT CALLING THE KETTLE BLACK STILL AS CELLULAR PHONES GROW IN POPULARITY MANY USERS ARE LIKELY TO BE PUZZLED BY WHAT'S GOOD ETIQUETTE AND WHAT'S NOT FOR INSTANCE IS IT RUDE TO RECEIVE AN URGENT BUSINESS CALL DURING A DATE SINCE CELLULAR CALLS ARE OFTEN EXPENSIVE HOW DO YOU POLITELY CUT PEOPLE OFF AFTER A CERTAIN POINT FOR THAT MATTER WHOM SHOULD YOU GIVE YOUR CELLULAR PHONE NUMBER TO AND DO YOU ASK THEM TO USE IT ONLY IN AN EMERGENCY MANY USERS FALL BACK ON RULES OF COMMON COURTESY JOHN SULLIVAN A CORPORATE ACCOUNT MANAGER FOR NYNEX MOBILE CORPORATION A UNIT OF NYNEX CORPORATION USES HIS PHONE WHILE SHUTTLING BETWEEN PHILADELPHIA AND NEW YORK ON A COMMUTER TRAIN QUOTE SOMETIMES I WANT TO SCREAM QUOTE AT THE OTHER PARTY HE SAYS QUOTE BUT I'VE GOT TO BE MORE POLITE BECAUSE THERE ARE SOME THINGS YOU JUST CAN'T SAY IN A PUBLIC PLACE QUOTE OTHER TIMES POLITE BEHAVIOR MAY YIELD TO MORE PRACTICAL CONSIDERATIONS KURT HUDSON A SALESPERSON FOR INTEGRATED CONTROLS IN SIGNAL HILL CALIFORNIA SAYS HE HAS LEARNED THAT IT'S NO GREAT SIN TO BE REALLY SHORT WITH PEOPLE BECAUSE CELLULAR PHONE CALLS TEND TO BE EXPENSIVE MY BOSS LOVES TO TALK HE SAYS BUT I CUT HIM OFF MR. HUDSON ALSO POINTS OUT THAT ATTITUDES TOWARD CELLULAR PHONE CALLS FROM PUBLIC PLACES CAN VARY DEPENDING ON WHERE YOU ARE OUT HERE YOU DON'T GET MUCH OF A LOOK IN A RESTAURANT IF YOUR POCKET SUDDENLY STARTS RINGING HE EXPLAINS IT'S STANDARD PROCEDURE BUT HE ADDS I'M FROM BOSTON AND I STILL FEEL WEIRD ABOUT IT IF TECHNOLOGY MUDDIED THE WATERS OF ETIQUETTE FOR CELLULAR PHONE USERS IN THE FIRST PLACE IT MAY ALSO BE COMING TO ITS RESCUE MERLE GILMORE A SENIOR VICE PRESIDENT AT MOTOROLA INCORPORATED A SCHAUMBURG ILLINOIS MAKER OF CELLULAR PHONES SELDOM LEAVES HIS PHONE ON WHEN IN A PUBLIC PLACE INSTEAD HE CARRIES A VIBRATING PAGER THAT DISCREETLY INDICATES THAT SOMEONE'S TRYING TO REACH HIM QUOTE IF IT'S AN IMPORTANT CALL QUOTE HE SAYS QUOTE I EXCUSE MYSELF AND GO TO A PAY PHONE QUOTE CELLULAR PHONE OWNERS CAN ALSO FORWARD INCOMING CALLS TO A VOICE MAIL MESSAGE OR ANY OTHER NUMBER WHEN IN A RESTAURANT FOR INSTANCE THE CALL CAN BE FORWARDED TO THE ESTABLISHMENT ITSELF AND THE PHONE OWNER CAN BE POLITELY INFORMED BY THE MAITRE D. THAT HE OR SHE HAS A CALL EVENTUALLY IT WILL BECOME A NORM FOR PEOPLE TO USE CELLULAR PHONES EVEN IN PUBLIC PLACES MR. GILMORE SAYS PEOPLE WILL THINK NOTHING OF IT MR. NAIK IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU DATA BROADCASTING CORPORATION A NEW YORK PROVIDER OF REAL TIME FINANCIAL MARKET DATA AND NEWS SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE PRIVATELY HELD CAPITAL MANAGEMENT SCIENCES FOR TWENTY FOUR POINT THREE MILLION DOLLARS IN CASH STOCK AND NOTES CAPITAL MANAGEMENT SCIENCES OF LOS ANGELES PROVIDES FIXED INCOME ANALYTICS DATA TO INSTITUTIONS INVESTMENT MANAGERS AND PROFESSIONAL INVESTORS FOR THE FISCAL YEAR ENDED SEPTEMBER THIRTIETH IT HAD REVENUE OF EIGHT POINT EIGHT MILLION DOLLARS AND OPERATING PROFIT OF TWO POINT THREE MILLION DOLLARS DATA BROADCASTING HAD REVENUE OF FOURTEEN POINT EIGHT MILLION DOLLARS AND PROFIT OF NINE HUNDRED TWENTY SEVEN THOUSAND DOLLARS OR FIVE CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED SEPTEMBER THIRTIETH IN NASDAQ STOCK MARKET TRADING DATA BROADCASTING CLOSED AT FIVE DOLLARS AND FIFTY CENTS UP TWELVE POINT FIVE CENTS COPPER FUTURES PRICES CONTINUED TO TUMBLE ON STOCK MARKET WEAKNESS INDICATIONS OF INCREASING U. S. SUPPLIES AND CONCERNS ABOUT JAPAN'S ECONOMIC HEALTH AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR MARCH DELIVERY WAS DOWN ONE POINT TWO FIVE CENTS TO EIGHTY FIVE POINT SIX OH CENTS A POUND SINCE FEBRUARY SECOND WHEN THE MARCH CONTRACT REACHED A HIGH OF NINETY ONE POINT THREE OH CENTS A POUND THE PRICE HAS FALLEN ABOUT SIX PERCENT COPPER'S PRICE HAD BEEN SUPPORTED IN PRIOR WEEKS BY A SPATE OF POSITIVE U. S. ECONOMIC REPORTS AND PERSISTENT DECLINES IN THE WAREHOUSE STOCKS OF COPPER MAINTAINED BY THE WORLD'S TWO MAIN COPPER MARKETS THE COMEX AND THE LONDON METAL EXCHANGE BUT THE FED'S TIGHTENING OF INTEREST RATES LAST FRIDAY AND THE SUBSEQUENT WEAKNESS OF THE U. S. STOCK MARKET HAVE BEEN SEEN AS NEGATIVE SIGNS FOR COPPER WHICH IS AN ECONOMICALLY SENSITIVE INDUSTRIAL COMMODITY QUOTE IT WAS GETTING A LITTLE OVERBOUGHT ON THE UPSIDE QUOTE SAID FRED DEMLER METALS ECONOMIST FOR E. D. AND F. MAN MOREOVER MR. DEMLER SAID RUMORS ARE CIRCULATING IN THE MARKET THAT COPPER FROM L. M. E. WAREHOUSE STOCKS MAY SOON BE SHIPPED TO THE U. S. WHERE COPPER SUPPLIES ARE CURRENTLY TIGHT INCREASES IN U. S. SUPPLIES WOULD LIKELY CONTINUE TO EXERT DOWNWARD PRESSURE ON PRICES WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH SAID WORRIES ABOUT THE STATE OF U. S. TRADE NEGOTIATIONS WITH JAPAN ARE ALSO PULLING COPPER PRICES LOWER ANY THREAT TO THE JAPANESE ECONOMY WOULD BE A NEGATIVE TO COPPER MARKET MR. O'NEILL SAID JAPAN IS A BIG PRODUCER AND USER OF COPPER A BIG ELEMENT OF THE COPPER MARKET THE STEADINESS OF COPPER'S PLUNGE IN THE PAST NINE DAYS HAS ATTRACTED COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY THAT TRADE ON THE BASIS OF THEIR OWN MATHEMATICAL PRICE PROJECTIONS RATHER THAN SUPPLY AND DEMAND FUNDAMENTALS ANALYSTS SAY THESE FUNDS HAVE HELPED TO PRESSURE PRICES LOWER BY SELLING FUTURES CONTRACTS AT THE COMEX IN PART BECAUSE OF THE SELLING PRESSURE IN THE MARKET MR. O'NEILL PREDICTS THAT PRICES WILL DECLINE AN ADDITIONAL TWO TO THREE CENTS A POUND IN THE SHORT TERM ENERGY ADDITIONAL COLD WEATHER IN THE U. S. NORTHEAST BOOSTED THE PRICES OF HEATING OIL FUTURES CONTRACTS WHILE PRICES FOR CRUDE AND GASOLINE CONTRACTS DECLINED IN MODERATE TRADING VOLUME ALTHOUGH A RALLY LATE IN YESTERDAY'S TRADING SESSION GAVE A BOOST TO ENERGY PRICES MOST MARKET PARTICIPANTS BELIEVE THAT CRUDE OIL PRICES ARE SET FOR A DECLINE HEATING OIL PURCHASES SPARKED BY THE RECENT COLD WEATHER HAVE HELPED TO PROP UP OIL PRICES ACROSS THE BOARD BUT AS IT BECOMES LATER IN THE HEATING SEASON INTEREST IN BUYING HEATING OIL WILL WANE THEY SAY AND MARKET PARTICIPANTS REMAIN SKEPTICAL THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WILL REACH AN AGREEMENT TO CUT PRODUCTION FOR THE SECOND QUARTER WHEN ALL THE ESTIMATES INDICATE WORLD WIDE DEMAND WILL FALL OIL MINISTERS OF SOME OPEC NATIONS ARE CURRENTLY TOURING THE MIDDLE EAST IN AN ATTEMPT TO GAIN SUPPORT FOR A PRODUCTION CUT BY THE ORGANIZATION BUT THEY APPEAR TO BE STIRRING UP LITTLE MORE THAN RHETORIC SO FAR LIVESTOCK AND MEATS PORK BELLY FUTURES PRICES FELL ON EXPECTATIONS OF INCREASED HOG SLAUGHTER NEXT WEEK AT THE CHICAGO MERCANTILE EXCHANGE PORK BELLIES FOR MARCH DELIVERY WERE DOWN ONE POINT NINE OH CENTS TO FIFTY FIVE POINT SEVEN TWO CENTS A POUND ONLY ABOUT ONE POINT TWO MILLION HOGS HAVE BEEN SLAUGHTERED SO FAR THIS WEEK DOWN ABOUT TEN PERCENT FROM THE SAME WEEK A YEAR AGO PEOPLE ARE LOOKING FOR A REBOUND IN SLAUGHTER NEXT WEEK SAID DAN VAUGHT LIVESTOCK ANALYST FOR A. G. EDWARDS AND SONS HOGS HELD UP BY THIS WINTER STORM THAT JUST PASSED HAVE TO COME TO MARKET TODAY IN LOS ANGELES CALIFORNIA'S OCCUPATIONAL SAFETY AND HEALTH STANDARDS BOARD OPENS HEARINGS TO CONSIDER REQUIRING BY LAW THAT EMPLOYERS IN THE STATE QUOTE ADJUST QUOTE THEIR QUOTE WORK PACE QUOTE THE ADJUSTMENT CAL OSHA HAS IN MIND IS DOWNWARD TO THOSE SURPRISED TO FIND THE NO LONGER SO GOLDEN STATE GIRDING TO REQUIRE ITS REMAINING BUSINESSES TO DO LESS WELCOME TO THE SAFETY AND HEALTH JUGGERNAUT THAT IS ERGONOMICS ERGONOMISTS DEFINE THEIR DISCIPLINE AS THE STUDY OF WORKERS' RELATION TO THEIR ENVIRONMENT ERGONOMIC MEASURES ARE THE FAVORED SOLUTION TO CARPAL TUNNEL SYNDROME AND OTHER CUMULATIVE TRAUMA DISORDERS CTDS PURPORTEDLY CAUSED BY REPETITIVE FORCEFUL MOTIONS AT WORK THE CAL OSHA HEARINGS RESULT FROM THE STATE ASSEMBLY'S REQUIREMENT THAT AN ERGONOMICS RULE BE ADOPTED TO MINIMIZE THE INSTANCES OF INJURY FROM REPETITIVE MOTION A SIMILAR MANDATE IS PENDING IN CONGRESS WHERE LABOR SECRETARY ROBERT REICH HAS TESTIFIED THAT CTDS ARE THE OCCUPATIONAL DISEASES OF THE INFORMATION AGE THE FEDERAL OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION ALREADY HAS PROMISED A DRAFT STANDARD BY FALL AND FOR SEVERAL YEARS NOW IT HAS BEEN PROSECUTING COMPANIES UNDER THE FEDERAL ACT'S QUOTE GENERAL DUTY CLAUSE QUOTE SO FOR INSTANCE FED OSHA HAS CHARGED THAT RISK OF DEATH OR SERIOUS PHYSICAL HARM LURKS IN THE HAND MOTIONS THAT PRODUCE PEPPERIDGE FARM'S DELIGHTFUL MILANO COOKIES ERGONOMICS' APPEAL LIES IN ITS UNQUESTIONABLE PREMISE AND ITS EQUALLY UNQUESTIONABLE AND UNQUESTIONABLY ATTRACTIVE CONCLUSION THE PREMISE HARD WORK IS TIRING AND SOMETIMES UNCOMFORTABLE EVEN PAINFUL THE CONCLUSION WORK LESS AND YOU'LL FEEL BETTER WHY I'VE EXPERIENCED THE VERY THING MYSELF THOUGH USUALLY PACKAGED IN PSEUDO SCIENTIFIC JARGON ERGONOMISTS' REMEDIES REFLECT A SIMILAR ROUGH COMMON SENSE CTDS THE THEORY GOES ARE THE PRODUCT OF REPETITION FORCE AND POSTURE TO CURE THEM REDUCE REPETITIONS ADJUST THE WORK PACE HIRE SEVEN EMPLOYEES TO DO THE WORK OF FIVE GIVE EMPLOYEES FREQUENT REST PERIODS AS FOR FORCE LESSEN IT BY DROPPING THE WEIGHT OF WHAT EMPLOYEES PRESS LIFT AND CARRY REDESIGN THE WORKSTATION TO IMPROVE EMPLOYEES' POSTURE ALL OF THESE MEASURES ARE EITHER EXPRESSED OR IMPLIED IN THE PROPOSED CALIFORNIA STANDARD THEY ARE TO BE TAKEN BY EMPLOYERS TO AN INDETERMINATE EXTENT ON A FINDING OF SUCH CTD SYMPTOMS AS PAIN FROM MOVEMENT THE MEASURES ALREADY ARE BEING DEMANDED BY FEDERAL AND STATE OSHA REGULATORS IN CASES LIKE THAT AGAINST PEPPERIDGE FARM NOR IS THIS THE LIMIT OF ERGONOMISTS' AGENDA FOR THEY HAVE IN STORE FOR EMPLOYEES A STILL GREATER FREEDOM UNEMPLOYMENT OSHA INSPECTORS MAY NOT BE ENGINEERS THEY MAY NOT BE PHYSICIANS BUT THEY CAN SURELY RECOGNIZE THAT IF A GIVEN OPERATION REQUIRED NO WORKERS AT ALL ILLNESS AND INJURY WOULD DISAPPEAR AUTOMATION IS ACCORDINGLY A COMMONLY PROPOSED ERGONOMIC MEASURE THIS PAST FALL AT A JOB SAFETY CONFERENCE IN CHICAGO A MEAT PACKING PLANT MANAGER SWELLED WITH PRIDE AT A FILM OF ONE OF HIS COMPANY'S FULLY AUTOMATED OPERATIONS WITH NARY A WORKER IN SIGHT WE USED TO HAVE HURT BACKS HURT SHOULDERS HE COMMENTED BUT NOT ANYMORE UNION MEMBERS IN THE AUDIENCE WERE WISE TO TAKE NOTE MOST AMBITIOUS OF ALL HOWEVER IS ERGONOMISTS' PROGRAM TO REACH BEYOND PHYSICAL CONDITIONS OF THE WORKPLACE TO ADDRESS THE VERY TERMS OF EMPLOYMENT INCREASINGLY ERGONOMISTS AND THEIR CRITICS ARE FINDING THAT EMPLOYEE REPORTS OF CTDS WHICH ARE DIFFICULT TO VERIFY OBJECTIVELY CORRELATE MORE STRONGLY WITH GENERALIZED JOB DISSATISFACTION THAN WITH A JOB'S PHYSICAL DEMANDS WITH ADMIRABLE PERSISTENCE ERGONOMISTS ARE NOW RECOMMENDING CHANGES TO THE PSYCHO SOCIAL CONDITIONS OF THE WORKPLACE THE RESEARCH ARM OF OSHA HAS RECOMMENDED MANDATORY ERGONOMICS PROGRAMS TO ADDRESS AMONG OTHER THINGS QUOTE OPPORTUNITY FOR ADVANCEMENT QUOTE WORKER QUOTE FEEDBACK QUOTE AND QUOTE MANAGEMENT STYLE AND CLIMATE QUOTE PERHAPS INSTEAD PSYCHO SOCIAL CAUSES OUGHT TO OCCASION SOME LAST MINUTE REFLECTIONS ON THE DOUBTFUL SCIENCE UNDERLYING ERGONOMICS IN THE WORDS OF ERGONOMICS GURU DON CHAFFIN WHAT THE FIELD LACKS IS GOOD EVALUATIONS THAT HOLD UP TO SCIENTIFIC SCRUTINY WHILE NO ONE DOUBTS THAT HARD WORK CAN BECOME TIRING AND UNCOMFORTABLE RESPECTED PHYSICIANS QUESTION FIRST WHETHER CTDS EXIST AS A DIAGNOSABLE CONDITION FALLING WITHIN OSHA'S AUTHORITY TO ADDRESS ILLNESS AND INJURY WHILE DISPUTING THIS ERGONOMISTS ACKNOWLEDGE SECOND THAT AN AILMENT CARRYING ALL THE SYMPTOMS OF A CTD MIGHT HAVE CAUSES OTHER THAN REPETITION AND FORCE AND THEREFORE NOT BE A CTD AT ALL DIAGNOSIS IS HARD IN ANY GIVEN CASE THIRD AND PERHAPS MOST NOTABLE OF ALL ERGONOMISTS READILY CONFESS NOT TO KNOW THE LEVELS AT WHICH REPETITION AND FORCE BECOME HAZARDOUS IN OTHER WORDS WHILE COMMANDING BUSINESS ON PAIN OF CIVIL OR EVEN CRIMINAL PENALTY TO REDUCE REPETITION AND FORCE TO NONHAZARDOUS LEVELS OSHA REGULATORS DO NOT KNOW THEMSELVES WHERE THIS LINE BETWEEN LEGAL AND ILLEGAL CONDUCT LIES SUCH A MANDATE IS PROBABLY UNCONSTITUTIONAL AND IS CERTAINLY STUPID POLICY BEFORE PARADING NAKED FOR HIS COUNTRYMEN THE EMPEROR WHO WORE NO CLOTHES PAID A HEFTY SUM TO CLEVER TAILORS WHO ASSURED HIM THEY HAD WOVEN A FINE GARMENT INDEED OTHER COUNTRIES NOTABLY AUSTRALIA HAVE INVESTED SMALL FORTUNES IN ERGONOMIC REFORM ONLY TO SEE THEIR CTD EPIDEMICS WAX AND WANE REGARDLESS OF THE MEASURES TAKEN AS ERGONOMICS RISES TO THE TOP OF THE NATION'S LABOR AGENDA POLICY MAKERS WOULD DO WELL TO TAKE CAREFUL MEASURE OF THE SCIENCE UNDERLYING IT MR. SCALIA A LAWYER IN WASHINGTON REPRESENTS MANAGEMENT IN OCCUPATIONAL SAFETY AND HEALTH MATTERS AS A TEN YEAR OLD KEVIN ROBBIE WAS THE ENVY OF EVERY KID IN AMERICA A BALLBOY FOR THE UNDEFEATED NINETEEN SEVENTY TWO MIAMI DOLPHINS A PAL OF THE LEGENDARY LARRY CSONKA AND BOB GRIESE AS A THIRTY ONE YEAR OLD HE IS CAUGHT IN THE LIVING NIGHTMARE OF A BATTLE WITHIN THE FAMILY BUSINESS A BROTHER FIRED A MOTHER SUED A NEVER ENDING NO PADS SCRIMMAGE AMONG SIBLINGS MR. ROBBIE HAS KNOWN THE TWO EXTREMES FOR ONE AND THE SAME REASON HE IS THE SON OF DOLPHINS FOUNDER AND LONGTIME OWNER JOE ROBBIE UPON HIS DEATH IN NINETEEN NINETY JOE ROBBIE LEFT BEHIND ONE OF THE NATIONAL FOOTBALL LEAGUE'S STRONGEST FRANCHISES COACHED BY DON SHULA TO MOST OF HIS RECORD SETTING THREE HUNDRED TWENTY SEVEN WINS HE ALSO LEFT A WILL THAT WOULD DRAG THE TEAM DOWN INTO A QUAGMIRE WHEN THE ROBBIES SOLD THE DOLPHINS TO VIDEO STORE MOGUL H. WAYNE HUIZENGA FOR ONE HUNDRED THIRTY EIGHT MILLION DOLLARS THIS WEEK THE TEAM FETCHED LESS THAN AN N. F. L. EXPANSION ENTRY INDEED BECAUSE THE TRANSACTION NETTED FOUR MILLION DOLLARS LESS THAN ANOTHER BIDDER'S OFFER AND WAS RUSHED TO COMPLETION IT MAY SPARK YET ANOTHER INTRA FAMILY LEGAL WAR QUOTE IT'S POSSIBLE QUOTE SAYS KEVIN ROBBIE SPEAKING FOR HIS FACTION WE FEEL LIKE WE COULD HAVE GOTTEN MORE THE MIAMI DOLPHINS' STORY IS A REMINDER THAT FOR ALL THE GRANDEUR OF SUNDAY'S SUPER BOWL PRO FOOTBALL IS REALLY A COLLECTION OF SMALL BUSINESSES A TYPICAL N. F. L. TEAM GROSSES FIFTY MILLION DOLLARS TO SIXTY MILLION DOLLARS ANNUALLY WITH THE EXCEPTION OF THE GREEN BAY PACKERS THEY ARE PRIVATELY HELD AND THUS SUBJECT TO BEING RUN IN HIGHLY QUIRKY WAYS THE DOLPHINS ARE ALSO TYPICAL OF AN ENDANGERED SPECIES THROUGHOUT PRO SPORTS THE FAMILY RUN MOM AND POP FRANCHISE JOE ROBBIE FOR WHOM THE DOLPHINS WERE A LIVELIHOOD STOOD FOR YESTERDAY WAYNE HUIZENGA FOR WHOM THE DOLPHINS ARE JUST ANOTHER PIECE OF SHOW BIZ SOFTWARE STANDS FOR TOMORROW THIS IS THE THIRD PRO SPORTS FRANCHISE HE HAS ACQUIRED IN THE PAST THREE YEARS THOUGH HIS CONTROL OF THE FLORIDA MARLINS BASEBALL AND FLORIDA PANTHERS HOCKEY MAY RUN HIM AFOUL OF THE N. F. L.'S RULES AGAINST CROSS OWNERSHIP MEANWHILE BLOCKBUSTER ENTERTAINMENT CORPORATION OF WHICH HE IS CHAIRMAN AND CHIEF EXECUTIVE HAS GONE FROM JUST RENTING MOVIES TO MAKING THEM VIA ITS ACQUISITION OF REPUBLIC PICTURES AND HIS SIGHTS ARE NOW SET ON DEVELOPING A TWO THOUSAND THREE HUNDRED ACRE THEME PARK AND SPORTS COMPLEX JUST NORTH OF MIAMI IN ADDITION BLOCKBUSTER HAS AGREED TO MERGE WITH VIACOM INCORPORATED AND JOINED IN VIACOM'S BID FOR PARAMOUNT COMMUNICATIONS INCORPORATED WAYNE IS A BIG BELIEVER IN THE POWER OF ENTERTAINMENT PROGRAMING AND HE'S DEEPLY COMMITTED TO SOUTH FLORIDA SAYS RUSSELL GOLDSMITH REPUBLIC PICTURES' CHAIRMAN YOU PUT THAT ALL TOGETHER AND IT GETS VERY INTERESTING THE WRENCHING CHANGEOVER FROM YESTERDAY TO TOMORROW WAS PERHAPS INEVITABLE FROM THE MOMENT OF MR. ROBBIE'S DEATH UNTIL THEN THERE HAD BEEN NO DOUBT ABOUT THE DOLPHINS' BOSS OR COURSE FROM THE MOMENT HE PUT UP SIXTY FIVE THOUSAND DOLLARS FOR THE TEAM IN NINETEEN SIXTY SIX TO THE DAY HE DIED IN JANUARY NINETEEN NINETY AT AGE SEVENTY THREE MR. ROBBIE WAS AN AUTOCRAT DON SHULA ONCE THREATENED TO PUNCH HIM OUT FOR HUMILIATING HIM IN FRONT OF FRIENDS VERY FEW PEOPLE LOVED HIM BUT EVERYBODY RESPECTED HIM SAYS NORMAN BRAMAN THE PHILADELPHIA EAGLES' OWNER AND A MIAMI RESIDENT QUOTE HE WAS THE ULTIMATE WINNER QUOTE BUT LIKE MANY SEAT OF THE PANTS ENTREPRENEURS HE WAS AN OVER REACHER MR. ROBBIE'S LAST MAJOR ACT BUILDING A ONE HUNDRED TEN MILLION DOLLAR STADIUM WITH PRIVATE FINANCING SADDLED HIM WITH HUGE DEBTS HE REACHED OUT FOR AN INVESTOR IN JOE ROBBIE STADIUM TO SHARE THAT LOAD AND FOUND MR. HUIZENGA EVEN ON HIS DEATHBED HOWEVER MR. ROBBIE WAS A TOUGH CUSTOMER HE REFUSED TO GIVE MR. HUIZENGA MORE THAN A FORTY NINE PERCENT INTEREST AND THEIR TALKS COLLAPSED IN DECEMBER NINETEEN EIGHTY NINE MR. ROBBIE DIED SOON THEREAFTER LEFT CONTROL OF THE TEAM TO A TRUST AND NAMED THREE OF HIS NINE CHILDREN AS TRUSTEES TIM THEN THIRTY FOUR DAN THEN TWENTY EIGHT AND JANET THEN FORTY THREE THEY PROMPTLY MADE THE DEAL WITH MR. HUIZENGA THAT THEIR FATHER WOULDN'T A FIFTY PERCENT STADIUM INTEREST AND A FIFTEEN PERCENT STAKE IN THE TEAM MR. HUIZENGA IN ADDITION GOT AN OPTION TO BUY ANOTHER TEN PERCENT OF THE DOLPHINS BASED ON THEIR NINETEEN NINETY VALUATION OF ONE HUNDRED MILLION DOLLARS AND THE RIGHT TO MATCH ANY FUTURE OFFER FOR THE ROBBIES' STOCK THEY PANICKED SAYS DEBORAH OLSON ONE OF THE OTHER SIBLINGS THE TEAM WAS HEAVILY IN DEBT AND THIS WAS QUICK CASH BUT IT WAS DONE WITHOUT ANALYSIS MRS. OLSON THREE OTHER SIBLINGS AND THEIR MOTHER ELIZABETH TRIED TO BLOCK THE TRANSACTION BUT IT WENT THROUGH AND THE FAMILY'S BLOOD FEUD WAS ON BY JULY NINETEEN NINETY THE THREE CONTROLLING CHILDREN HAD FIRED A DISSIDENT BROTHER MIKE FROM HIS EXECUTIVE VICE PRESIDENT POST ELIZABETH ROBBIE PUBLICLY SCOLDED THE THREE VIA FAXES TO REPORTERS THEN IN MARCH NINETEEN NINETY ONE SHE DID A LOT MORE SHE FILED HER WIDOW'S ELECTION TO CLAIM THE THIRTY PERCENT OF HER HUSBAND'S ESTATE THAT SHE WAS DUE UNDER FLORIDA LAW THE AIM WAS TO BREAK THE TRUST AND THE TRUSTEES' HOLD ON THE DOLPHINS THE WAR OF THE INS VERSUS THE OUTS ESCALATED WITH THE FAMILY EVENLY SPLIT FOUR CHILDREN SIDING WITH THEIR MOTHER AND TWO OTHERS SIDING WITH THE THREE TRUSTEES WHEN THE DOLPHINS THREW SOCIAL EVENTS MRS. ROBBIE WASN'T INVITED WHILE THE DOLPHINS PLAYED ONE GAME IN A DOWNPOUR DISSIDENT SIBLING DIANE TRULY WAS BARRED FROM THE COMFORT OF THE ROBBIES' OWNERS BOX AND HAD TO WATCH SOAKED IN THE STANDS WHEN DAD DIED THE THREE TRUSTEES BECAME A CLOSED SOCIETY SAYS MS. TRULY FIFTY THE ELDEST ROBBIE CHILD QUOTE POWER AND GLORY AND MONEY WENT TO THEIR HEADS AND CORRUPTED THEIR VALUES QUOTE TIM ROBBIE THE DOLPHINS' PRESIDENT DENIES IT WHEN YOU COME FROM A BIG FAMILY THERE ARE A LOT OF DIFFERENCES OF OPINION AND IT'S INEVITABLE HE SAYS I THINK THERE WAS SIMPLY RESENTMENT THAT WE WERE CHOSEN AND THEY WEREN'T WHATEVER THE BASIC ORIGINS OF THE FEUD IT ESCALATED MRS. ROBBIE CUT TIM AND SISTER JANET OUT OF HER WILL AND REDUCED BEQUESTS TO HER OTHER ESTRANGED CHILDREN THE INS SUED THEIR MOTHER TO TRY TO ELIMINATE HER AS A BENEFICIARY OF MR. ROBBIE'S TRUST SHE DIED IN NOVEMBER NINETEEN NINETY ONE AT AGE SIXTY NINE BUT THE PROBLEMS WENT ON NOW AN ESTATE TAX OF MORE THAN THIRTY MILLION DOLLARS WOULD BE ASSESSED TO PAY IT THE DOLPHINS' SALE WAS INEVITABLE BUT BY NOW DESPITE A NINETEEN NINETY ONE RANKING BY FINANCIAL WORLD AS SPORT'S SECOND MOST VALUABLE FRANCHISE TWO HUNDRED FIVE MILLION DOLLARS BY THE MAGAZINE'S CALCULATION THEY WERE DAMAGED GOODS THE INS WHO RAN THE TEAM HAD INHERITED THEIR FATHER'S HARDHEADEDNESS WITHOUT HIS BUSINESS ACUMEN THE DOLPHINS LOST THREE POINT SIX MILLION DOLLARS IN NINETEEN NINETY TWO AND ACCORDING TO ONE PERSON KNOWLEDGEABLE IN N. F. L. FINANCES ABOUT SEVEN MILLION DOLLARS IN NINETEEN NINETY THREE TIM ROBBIE ASSERTS THAT THE TEAM WAS PROFITABLE IN NINETEEN NINETY THREE ONE FACTOR WAS A SPIRALING PLAYER PAYROLL JOE ROBBIE HAD FOUGHT CONSTANTLY WITH COACH SHULA WHO FOREVER PRESSED TO SPEND BIG ON PLAYERS MR. SHULA WON A LOT MORE GAMES ON THE GRIDIRON THAN ARGUMENTS IN THE OWNER'S OFFICE BUT THE COACH UTTERLY OVERRAN MR. ROBBIE'S OFFSPRING DON GOES I WANT THIS PLAYER AND I WANT THAT PLAYER AND THE KIDS CAN'T STAND UP TO HIM SAYS ONE N. F. L. INSIDER FAMILIAR WITH THE DYNAMICS MIAMI'S SIGNING OF A RAFT OF HIGH PRICED FREE AGENTS LIKE TIGHT END KEITH JACKSON AND RECEIVER MARK INGRAM PUT THE DOLPHINS' PAYROLL AT ABOUT FORTY MILLION DOLLARS THIS SEASON IN THE UPPER TIER OF THE N. F. L.'S TOP SALARIED TEAMS ALSO HURTING FINANCES WERE THE TERMS OF THE TEAM'S LEASE WHICH DIVERT MAJOR REVENUE STREAMS LIKE LUXURYSUITE RENTALS TO THE SEPARATE COMPANY THAT OWNS THE STADIUM THAT DIDN'T MAKE SO MUCH DIFFERENCE WHEN THE ROBBIES OWNED BOTH BUT WHEN THEY PUT THE TEAM UP FOR SALE ON A STAND ALONE BASIS IT DIMINISHED THE MARKET VALUE THE LURKING PRESENCE OF MR. HUIZENGA DID TOO ANYBODY WHO BOUGHT THE DOLPHINS WOULD HAVE TO RECKON WITH HIM BOTH AS THE FIFTY PERCENT OWNER OF THE STADIUM AND AS PRINCIPAL OWNER OF ITS OTHER OCCUPANT THE MARLINS THE BASEBALL AND FOOTBALL TEAMS HAVE HAD AN UNEASY RELATIONSHIP AS CO TENANTS IF THAT DIDN'T GIVE A PROSPECTIVE DOLPHINS OWNER PAUSE MR. HUIZENGA'S TALK OF MOVING THE MARLINS TO HIS PROPOSED ENTERTAINMENT COMPLEX DID THE BASEBALL TEAM'S PRESENCE CUT THE DOLPHINS' RENTAL BILL ITS ABSENCE WOULD RATCHET IT BACK UP TO SOME KNOWLEDGEABLE DOLPHINS WATCHERS MR. HUIZENGA WAS TRYING TO JAWBONE DOWN THE TEAM'S MARKET VALUE MR. HUIZENGA WAS UNAVAILABLE FOR COMMENT THIS WAS CERTAINLY IN HIS INTEREST UNDER THE PART OWNERSHIP TERMS HE NEGOTIATED IN NINETEEN NINETY HE HAD THE RIGHT TO BUY THE REST OF THE TEAM BY MATCHING THE HIGHEST OFFER ANYONE ELSE MADE IT HAD A DEPRESSING EFFECT ON THE MARKET FOR THE DOLPHINS QUOTE IF YOU LET SOMEBODY TAKE CONTROL OF THE PROCESS ON THE BUY SIDE YOU CAN'T GET UP A HEAD OF STEAM FROM OTHER OUTSIDE BIDDERS QUOTE SAYS AN INVESTMENT BANKER WHO HAS HANDLED SPORTS TRANSACTIONS THE ROBBIES AS EVEN SOME NON FAMILY NEUTRALS SEE IT DIDN'T MANAGE THE DOLPHINS' SALE VERY WELL WHEN THE NEW ENGLAND PATRIOTS WERE UP FOR SALE FOR INSTANCE THE OWNERS HIRED A TOP FLIGHT INVESTMENT BANK TO MANAGE THE TRANSACTION AND IT ORCHESTRATED AN AUCTION THAT FETCHED ONE HUNDRED SIXTY MILLION DOLLARS THE ROBBIES RETAINED A REGIONAL BANK HOLDING COMPANY CALLED MANY OF THE SHOTS THEMSELVES AND STUMBLED THROUGH A LONG DISJOINTED SELLING PROCESS THE ROBBIES HAD TWO NEAR AGREEMENTS FALL THROUGH IN NINETEEN NINETY THREE THEN CAME A ONE HUNDRED FORTY TWO MILLION DOLLAR BID EARLY THIS MONTH FROM JOHN HENRY A BOCA RATON COMMODITIES TRADER THE ROBBIES DECIDING THE OFFER CARRIED TOO MANY CONDITIONS REJECTED IT THEN TELECOMMUNICATIONS MAGNATE GEORGE LINDEMANN GOT A TWO WEEK EXCLUSIVE NEGOTIATING PERIOD STARTING JANUARY TENTH HE CAME IN AT ONE HUNDRED THIRTY EIGHT MILLION DOLLARS THE THREE INS CALLED A MEETING OF THE COMBINED STADIUM AND TEAM BOARDS WHICH INCLUDED ONE OF THE OUT SIBLINGS TO CONSIDER THE OFFER BUT BETWEEN THE TIME THE MEETING WAS SCHEDULED LAST FRIDAY AND WHEN IT WAS TO BE HELD ON TUESDAY MR. HUIZENGA SWOOPED IN TO MATCH MR. LINDEMANN'S BID THE THREE CONTROLLING TRUSTEES ACCEPTED IT SUNDAY TO THE SCREAMS OF THE OUTS IT'S EASY FOR ANYBODY SITTING ON THE SIDELINES TO QUESTION ANY DEAL SAYS TIM ROBBIE THE TEAM PRESIDENT BUT WE TALKED TO AT LEAST TWENTY PEOPLE WHO HAD INTEREST IN BUYING AND WE'RE VERY COMFORTABLE WITH THIS TRANSACTION OTHER ROBBIE SIBLINGS SOUGHT COMPETITIVE BIDDING AND DIDN'T THINK MR. HUIZENGA WOULD MAKE A PRE EMPTIVE STRIKE IT WAS DONE AROUND THE RULES IT WASN'T A VALIDLY CALLED MEETING TO APPROVE THE SALE SAYS MRS. OLSON A BOARD MEMBER WHO LEARNED OF THE TRANSACTION ONLY AFTER THE FACT QUOTE I RESPECT WAYNE HUIZENGA HE JUST JUMPED IN AT A GOOD TIME TO GET A GOOD DEAL HE LOOKED OUT FOR HIS INTERESTS AND I'M JUST TRYING TO LOOK OUT FOR MINE INDEED MR. HUIZENGA HAS PROBABLY SWUNG A VERY GOOD DEAL THE N. F. L. STANDS TO BE FLUSH OVER THE NEXT FOUR YEARS WITH FOUR POINT FOUR BILLION DOLLARS WORTH OF T. V. MONEY GUSHING IN AND LABOR PEACE FINALLY AT HAND THE CONTROL OF BOTH TEAMS USING JOE ROBBIE STADIUM ALSO GAINS HIM OPERATING EFFICIENCIES FOR MR. HUIZENGA SPORTS IS EMERGING AS GREAT FODDER FOR THE EVOLVING MEDIA AND ENTERTAINMENT AGE IN WHICH HE IS A PLAYER WAYNE VIEWS THESE PROPERTIES AS SOFTWARE FOR THE BIGGER PICTURE SAYS DEAN JORDAN BROADCAST CHIEF FOR THE MARLINS AND MARKETING CHIEF FOR THE PANTHERS THE MARLINS MAKE JOE ROBBIE STADIUM GO FOR EIGHTY ONE GAMES A YEAR AND THAT MAKES MERCHANDISING CONCESSIONS T. V. AND OTHER THINGS GO AND ALL OF THAT IS PART OF A BIGGER PICTURE THAT'S STILL BEING DEFINED ON A DAILY BASIS THE ROBBIES WILL PROBABLY NOT BE PART OF THAT FUTURE A DEVELOPMENT THEY VIEW WITH MIXED EMOTIONS IT'S HARD SAYS KEVIN THE ONETIME BALLBOY QUOTE IT'S BEEN MY LIFE QUOTE BUT HIS SISTER MS. TRULY LOOKS FORWARD TO THE END OF HAVING TO DEAL WITH HER ESTRANGED SIBLINGS I'LL BE GRATEFUL I DON'T HAVE THEM IN MY LIFE MICHAEL FORTUNATO A WEST VIRGINIA DOCTOR OPENED A NEW OFFICE FIVE MILES ACROSS THE OHIO RIVER LAST SUMMER JUST FAR ENOUGH TO SHIELD PART OF HIS INCOME FROM WEST VIRGINIA'S NEW TWO PERCENT TAX ON DOCTORS' REVENUES WHILE AN EXTREME REACTION DOCTOR FORTUNATO'S MOVE TO OHIO REFLECTS GROWING CONCERN WITHIN THE MEDICAL COMMUNITY ABOUT MANY STATES' NEW RELIANCE ON DOCTORS AND HOSPITALS TO HELP DEFRAY THE COST OF MEDICAL CARE FOR THE POOR WITHIN THE PAST YEAR LAWMAKERS IN MINNESOTA AND KENTUCKY ALSO HAVE IMPLEMENTED TWO PERCENT REVENUE TAXES WHICH DOCTORS ARE CHALLENGING IN COURT NEBRASKA TENNESSEE MINNESOTA AND WASHINGTON D. C. HAVE PLACED NEW LICENSING FEES ON PHYSICIANS AND PHYSICIAN TAXES ARE ON THE AGENDA IN ABOUT A DOZEN STATES MEANWHILE ABOUT TWENTY FIVE STATES HAVE PLACED LEVIES ON HOSPITALS TO HELP CARRY THE BURDEN THESE NEW FINANCING EFFORTS SPRING FROM MANY STATES' INCREASING DESPERATION OVER THE COSTS OF THE FEDERAL MEDICAID PROGRAM FOR THE POOR WHICH IS PARTLY FUNDED BY THE STATES THE ASSESSMENTS HAVE RENEWED THE QUESTION OF WHETHER IT IS FAIR TO TAX ONE GROUP OF PEOPLE TO PAY FOR SERVICES THAT BENEFIT SOCIETY SIMILAR TAXES ON LAWYERS THAT HAVE BEEN PROPOSED IN SOME STATES FOR VARIOUS PURPOSES ALSO HAVE AROUSED CONTROVERSY BECAUSE SUCH TAXES OFTEN TARGET HIGHLY PAID AND SOMETIMES UNPOPULAR PROFESSIONS THEY HAVE BECOME POLITICALLY FASHIONABLE IN AN ERA OF PUBLIC HOSTILITY TO BROAD TAX HIKES STATES TYPICALLY JUSTIFY THE PHYSICIAN ASSESSMENT FOR INSTANCE AS A WAY OF REQUIRING DOCTORS TO FULFILL THEIR ETHICAL RESPONSIBILITY TO CARE FOR THE POOR IN ADDITION SOME STATE OFFICIALS POINT OUT BECAUSE THE STATE GIVES DOCTORS A VALUABLE AND EXCLUSIVE LICENSE TO PRACTICE MEDICINE IT HAS A RIGHT TO COLLECT A SMALL TAX FOR THE PUBLIC GOOD BUT THE TAXES HAVE TRIGGERED FIERCE RESISTANCE FROM THE AMERICAN MEDICAL ASSOCIATION AND ITS AFFILIATED STATE ORGANIZATIONS TAXING DOCTORS TO COVER HEALTH CARE FOR THE POOR IS QUOTE LIKE BUILDING CONTRACTORS HAVING TO BUILD HOMES FOR THE HOMELESS OR LAWYERS HAVING TO PAY TAXES TO FUND THE BUILDING OF PRISON SYSTEMS QUOTE SAYS ARDIS HOVEN THE PRESIDENT OF THE KENTUCKY MEDICAL ASSOCIATION THIS WAS BASICALLY A SPECIAL PROFESSIONAL TAX THAT WAS BENEFITING ONLY ONE SEGMENT OF SOCIETY THE INDIGENT IN KENTUCKY A GROUP OF PHYSICIANS THE STATE MEDICAL ASSOCIATION AND SOME HEALTH MAINTENANCE ORGANIZATIONS HAVE ARGUED THAT THE STATE'S NEW TAX WHICH ALSO ASSESSES HOSPITALS AND H. M. O.S TWO POINT FIVE PERCENT OF THEIR REVENUES VIOLATES KENTUCKY'S CONSTITUTION IN NOVEMBER A JUDGE AGREED HIS RULING IS UNDER APPEAL THERE IS NO REASONABLE BASIS TO SINGLE OUT THESE HEALTH CARE PROVIDERS TO PAY SPECIAL TAXES TO SUPPORT THE MEDICAID PROGRAM WROTE STATE JUDGE ROGER CRITTENDEN IN HIS RULING THIS PROGRAM BENEFITS THE STATE'S RESIDENTS AS A WHOLE AND THERE ARE NO JUSTIFIABLE REASONS FOR ARBITRARILY DESIGNATING PHYSICIANS TO PAY FOR IT BUT LAST MONTH THE CHIEF JUSTICE OF THE KENTUCKY SUPREME COURT SAID THE STATE COULD CONTINUE COLLECTING THE TAX UNTIL THE APPEAL IS DECIDED STATES HAVE FOUND THEMSELVES SQUEEZED FINANCIALLY FROM SEVERAL DIRECTIONS ABOVE ALL THE PRICE OF MEDICAL CARE HAS SOARED THE FEDERAL GOVERNMENT HAS EXPANDED THE SERVICES COVERED BY MEDICAID AND HAS MADE MORE PEOPLE ELIGIBLE FOR IT AND THE RECESSION HAS DRIVEN MORE PEOPLE ONTO THE PROGRAM'S ROLLS CONGRESS HASN'T INCREASED THE FEDERAL SHARE OF MEDICAID FUNDING IN YEARS LEAVING THE STATES TO PICK UP THE SLACK MEDICAID HAS BECOME THE PACMAN OF STATE GOVERNMENT SAYS RICHARD HEGNER A MEDICAID SPECIALIST AT GEORGE WASHINGTON UNIVERSITY'S INTERGOVERNMENTAL HEALTH POLICY PROJECT PRESIDENT CLINTON'S HEALTH PLAN AS WRITTEN WOULD HELP RELIEVE THE STATES' FINANCIAL CRUNCH BY ELIMINATING MAJOR PARTS OF THE MEDICAID PROGRAM INSTEAD POOR AND UNEMPLOYED PEOPLE WOULD BE POOLED INTO THE SAME GIANT HEALTH CARE ALLIANCES AS THE GENERAL PUBLIC AND THE COST OF THEIR HEALTH COVERAGE WOULD BE PAID MOSTLY BY THE FEDERAL GOVERNMENT MEANWHILE LEGISLATURES THAT TAX PHYSICIANS ARE IN EFFECT ENCOURAGING THEM TO MAINTAIN THEIR INCOME BY REACHING OUT FOR NEW PATIENTS INCLUDING THOSE COVERED BY MEDICAID SAYS UWE REINHARDT A PRINCETON UNIVERSITY HEALTH ECONOMIST YOU CAN STILL KEEP YOUR MERCEDES BUT INSTEAD OF GOING HOME AT FIVE O'CLOCK YOU GO HOME AT FIVE THIRTY HE SAYS THE OTHER OPTION SAYS DOCTOR FORTUNATO OF WEST VIRGINIA IS TO MOVE OUT OF STATE DOCTOR FORTUNATO SEES ABOUT TWENTY PERCENT OF HIS PATIENTS IN RENTED OFFICE SPACE IN MARTINS FERRY OHIO AND IS CONSIDERING MOVING HIS ENTIRE PRACTICE THERE IF THE TAX RATE IS RAISED ANTICIPATING SUCH A RESPONSE MINNESOTA HAS EXTENDED ITS TAX TO OUT OF STATE PHYSICIANS WHO TREAT MINNESOTA PATIENTS PHYSICIANS IN NEIGHBORING NORTH DAKOTA SOUTH DAKOTA IOWA AND WISCONSIN HAVE FILED A LAWSUIT LARGELY FUNDED BY THE A. M. A. CHALLENGING THE MINNESOTA BORDER STATE TAX AS UNCONSTITUTIONAL THE FORMER GREENFIELD AND CHIMICLES ONE OF THE NATION'S LARGEST PLAINTIFFS' FIRMS CONTINUES TO BE ROCKED BY DEFECTIONS LAST SUMMER NAME PARTNER RICHARD GREENFIELD LEFT THE HAVERFORD PENNSYLVANIA FIRM AMID A NEW JERSEY FEDERAL COURT INQUIRY INTO ALLEGATIONS OF ETHICAL IMPROPRIETIES IN A SECURITIES CLASS ACTION THAT HE HANDLED INVOLVING INVESTOR DONALD TRUMP MR. GREENFIELD ULTIMATELY ACCEPTED A FIVE THOUSAND DOLLAR FINE AND A ONE YEAR SUSPENSION FROM THE PRACTICE OF LAW IN FEDERAL COURTS THAT STARTED JANUARY FIRST THIS WEEK THE SURVIVING FIRM CHIMICLES BURT AND JACOBSEN ANNOUNCED THAT TWO OTHER LAWYERS INCLUDING NAME PARTNER C. OLIVER BURT AND PARTNER MICHAEL J. PUCILLO WERE LEAVING TO FORM BURT AND PUCILLO THE NEW FIRM WILL HAVE OFFICES IN HAVERFORD AND WILL ASSUME CONTROL OF THE FORMER CHIMICLES BURT OFFICE IN WEST PALM BEACH FLORIDA A TOTAL OF FIVE LAWYERS INCLUDING PART TIME LAWYERS ARE INVOLVED IN THE LATEST MOVE QUOTE I THINK IT IS JUST A NATURAL EVOLUTION IN THE PRACTICE OF LAW THAT YOUNG LAWYERS WANT TO START THEIR OWN FIRM QUOTE SAID MR. PUCILLO FORTY YEARS OLD MR. BURT COULDN'T BE REACHED FOR COMMENT MR. PUCILLO SAID THAT AMONG THE CASES THAT THE TWO LAWYERS WOULD BE TAKING WITH THEM WERE CLASS ACTION SUITS AGAINST AMERIFIRST BANK AND SOUTHEAST BANKING CORPORATION TWO FAILED FLORIDA LENDING INSTITUTIONS NICHOLAS CHIMICLES SAID THE DEPARTURES HAD NOTHING TO DO WITH THE TERMINATION OF GREENFIELD AND CHIMICLES AND DIDN'T SUGGEST ANY MAJOR PROBLEMS AT THE FIRM THE FIRM WAS RENAMED CHIMICLES JACOBSEN AND TIKELLIS AND MAINTAINS THIRTY TWO LAWYERS WITH OFFICES IN LOS ANGELES WILMINGTON DELAWARE AND HAVERFORD I FEEL VERY BAD ABOUT IT MR. GREENFIELD SAID OF HIS OLD FIRM A BUNCH OF THESE GUYS ARE MY FRIENDS AND IT IS A SHAME THAT IT IS NOT HOLDING TOGETHER HE SAID THE FIRM HAD ABOUT FORTY FIVE ATTORNEYS JUST BEFORE HE DEPARTED LAST YEAR TWO OLD LINE FLORIDA FIRMS MACFARLANE FERGUSON BASED IN TAMPA AND AUSLEY MCMULLEN MCGEEHEE CAROTHERS AND PROCTOR BASED IN TALLAHASSEE ARE JOINING FORCES LITIGATION ORIENTED AUSLEY MCMULLEN WITH THIRTY TWO LAWYERS IN TALLAHASSEE IS THE OLDEST AND BIGGEST LAW FIRM IN THE STATE CAPITAL ITS CLIENTS INCLUDE SPRINT CORPORATION TECO ENERGY INCORPORATED AND C. S. X. CORPORATION MACFARLANE FERGUSON IS BEST KNOWN FOR REPRESENTING LYKES BROTHERS INCORPORATED A CLOSELY HELD COMPANY IN TAMPA WITH VAST INTERESTS IN FLORIDA AGRICULTURE MEAT PACKING SHIPPING AND ENERGY THE MERGER WHICH TAKES EFFECT FEBRUARY FIRST IS EXPECTED TO BOOST MACFARLANE FERGUSON'S STATEWIDE PRESENCE BEFORE THE PACT THE FIRM HAD ONLY FOUR LAWYERS IN TALLAHASSEE THE COMBINED FIRMS TO BE KNOWN AS MACFARLANE AUSLEY FERGUSON AND MCMULLEN WILL HAVE ONE HUNDRED TEN LAWYERS WITH THIRTY TWO IN TALLAHASSEE FOURTEEN IN CLEARWATER AND SIXTY FOUR IN TAMPA RICHARD B. SCHMITT AND MILO GEYELIN CONTRIBUTED TO THIS ARTICLE INDIVIDUAL INVESTORS POURED THREE POINT TWO SEVEN BILLION DOLLARS INTO MONEY MARKET MUTUAL FUNDS IN THE WEEK ENDED TUESDAY AS YIELDS ROSE SLIGHTLY FOLLOWING THE FEDERAL RESERVE'S MOVE ON FRIDAY TO RAISE SHORT TERM INTEREST RATES ASSETS OF FOUR HUNDRED FORTY ONE FUNDS OPEN TO INDIVIDUALS ROSE TO THREE HUNDRED TWELVE POINT FOUR TWO BILLION DOLLARS IN THE LATEST WEEK ACCORDING TO MONEY FUND REPORT WALTER FRANK CHIEF ECONOMIST FOR THE ASHLAND MASSACHUSETTS NEWSLETTER SAID INVESTORS PROBABLY WERE RESPONDING TO THE DECLINE IN THE STOCK MARKET AND UNCERTAINTY ABOUT THE BOND MARKET AFTER THE FED'S MOVE INSTITUTIONS HOWEVER PULLED DOLLARS OUT OF MONEY FUNDS TO PURSUE HIGHER YIELDS IN DIRECT MARKET INVESTMENTS ASSETS OF ONE HUNDRED NINETY SIX INSTITUTIONAL FUNDS FELL BY EIGHT POINT ONE FOUR BILLION DOLLARS TO ONE HUNDRED SIXTY NINE POINT ONE FOUR BILLION DOLLARS MONEY FUND REPORT SAID MR. FRANK PREDICTED THAT INSTITUTIONS WILL WITHDRAW MORE CASH AS FUND YIELDS LAG BEHIND RISING YIELDS IN THE OPEN MARKET IN THE LATEST WEEK THE COMBINED ASSETS OF ALL SIX HUNDRED THIRTY SEVEN TAXABLE FUNDS THAT REPORT DATA TO THE NEWSLETTER FELL BY FOUR POINT EIGHT SEVEN BILLION DOLLARS TO FOUR HUNDRED EIGHTY ONE POINT FIVE SIX BILLION DOLLARS I. B. C. SLASH DONOGHUE'S AVERAGE SEVEN DAY COMPOUND YIELD ROSE TO TWO POINT SEVEN FIVE PERCENT FROM TWO POINT SEVEN ONE PERCENT ACCORDING TO MONEY FUND REPORT COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORT TERM CORPORATE I. O. U.S AND TREASURY BILLS SHORTENED BY TWO DAYS TO FIFTY NINE DAYS SHORTER MATURITIES USUALLY COINCIDE WITH RISING SHORT TERM RATES BECAUSE THEY ENABLE PORTFOLIO MANAGERS TO TAKE ADVANTAGE OF HIGHER YIELDS SOONER THE AVERAGE SEVEN DAY SIMPLE YIELD ON TAXABLE FUNDS ROSE TO TWO POINT SEVEN ONE PERCENT FROM TWO POINT SIX EIGHT PERCENT THE AVERAGE THIRTY DAY SIMPLE YIELD REMAINED AT TWO POINT SIX NINE PERCENT AND THE AVERAGE THIRTY DAY COMPOUND YIELD WAS UNCHANGED AT TWO POINT SEVEN THREE PERCENT ON TAX FREE MONEY FUNDS THE AVERAGE SEVEN DAY COMPOUND YIELD SLIPPED TO ONE POINT EIGHT TWO PERCENT FROM ONE POINT EIGHT SIX PERCENT THE LATEST YIELD IS EQUIVALENT TO A TAXABLE TWO POINT EIGHT FOUR PERCENT FOR AN INVESTOR IN THE THIRTY SIX PERCENT TAX BRACKET AND EQUIVALENT TO THREE POINT OH ONE PERCENT FOR SOMEONE PAYING THIRTY NINE POINT SIX PERCENT IN TAXES ASSETS OF THREE HUNDRED FORTY THREE TAX EXEMPT FUNDS GREW BY TWO POINT FIVE BILLION DOLLARS TO ONE HUNDRED ELEVEN POINT NINE BILLION DOLLARS ACCORDING TO MONEY FUND REPORT AVERAGE MATURITY OF THE TAX FREE FUNDS' INVESTMENTS SHORTENED BY ONE DAY TO FIFTY SIX DAYS MONEY FUND REPORT IS PUBLISHED BY I. B. C. SLASH DONOGHUE INCORPORATED A SUBSIDIARY OF I. B. C. U. S. A. PUBLICATIONS INCORPORATED HUFFY CORPORATION SELECTED A SITE IN FARMINGTON MISSOURI TO BUILD ITS NEW BICYCLE MANUFACTURING FACILITY THE COMPANY SAID IT PLANS TO SPEND ABOUT TWENTY MILLION DOLLARS TO BUILD THE FACILITY DENG XIAOPING CHINA'S PARAMOUNT LEADER APPEARED ON STATE TELEVISION FOR THE FIRST TIME IN MORE THAN A YEAR ADVOCATING EVEN FASTER GROWTH FOR SHANGHAI'S BOOMING ECONOMY MR. DENG NOW EIGHTY NINE YEARS OLD APPEARED FRAIL AND AT TIMES UNAWARE AS HE TOURED SITES IN SHANGHAI BUT TELEVISION SHOWED HIM WALKING AND SHAKING HANDS WITH PARTY AND GOVERNMENT OFFICIALS INDICATING THAT LAST YEAR'S SCATTERED REPORTS OF HIS IMMINENT DEMISE WERE PREMATURE CHINESE AND MANY FOREIGN INVESTORS IN CHINA PAY CLOSE ATTENTION TO REPORTS OF MR. DENG'S HEALTH BECAUSE THE AUTHORITARIAN REGIME HAS NO CLEAR OR POPULARLY SANCTIONED PLAN OF SUCCESSION SOME BELIEVE THE STABILITY OF THE COUNTRY AND THE FUTURE OF CHINA'S ECONOMIC REFORMS DEPEND ON HIS PERSONAL CONTROL OF THE COMMUNIST PARTY AND THE MILITARY MR. DENG NO LONGER MAKES PUBLIC APPEARANCES AND EVEN SHOTS OF HIM ON TELEVISION NOW COME NO MORE THAN ONCE A YEAR STATE TELEVISION SHOWED THE SENIOR LEADER MEETING WITH SHANGHAI MAYOR HUANG JU WU BANGGUO SHANGHAI'S COMMUNIST PARTY CHIEF AND OTHER LOCAL OFFICIALS IN COMMENTS ATTRIBUTED TO HIM BY AN ANNOUNCER HE SAID QUOTE THE SHANGHAI PEOPLE HAVE A SPECIAL QUALITY AND CHARACTER I THINK SHANGHAI HAS GOOD CONDITIONS TO BE DEVELOPED FASTER IN NINETEEN NINETY THREE SHANGHAI'S ECONOMY GREW AT THE BREAKNECK RATE OF FIFTEEN PERCENT SLIGHTLY ABOVE THE NATIONAL AVERAGE MR. DENG HAS BEEN QUOTED CONSISTENTLY AS RECOMMENDING FASTER ECONOMIC GROWTH EVEN AS OTHER CHINESE LEADERS FRET ABOUT RISING INFLATION STRUCTURAL IMBALANCES A GROWING TRADE DEFICIT AND CURRENCY REFORM ALL OF WHICH THEY SAY ARE DIFFICULT TO SOLVE UNLESS CHINA RETURNS TO A MORE EVEN AND SUSTAINABLE RATE OF GROWTH CHINA WATCHERS HAVE SUGGESTED THAT MR. DENG THINKING OF HIS LEGACY IS EAGER TO DEVELOP CHINA AS QUICKLY AS POSSIBLE BEFORE HIS DEATH AS EVIDENCE OF THE DIVISION WITHIN CHINA ON THE ISSUE OF ECONOMIC REFORM MR. DENG'S APPEARANCE ON THE BROADCAST WAS JUXTAPOSED WITH ANOTHER SENIOR LEADER CHEN YUN WHO GREETED THE SAME SHANGHAI OFFICIALS THE EIGHTY EIGHT YEAR OLD MR. CHEN A VETERAN ECONOMIST IS KNOWN FOR HIS THEORY OF BIRD CAGE ECONOMICS IN WHICH MARKET REFORMS TAKE PLACE ONLY WITHIN THE CAGE OF A CENTRAL PLAN THAT CONTRASTS WITH MR. DENG'S HEARTIER EMBRACE OF A FREE MARKET IN HIS COMMENTS MR. CHEN PRAISED SHANGHAI'S DEVELOPMENT BUT HAD WORDS OF CAUTION SPECIAL ATTENTION SHOULD BE PAID TO KEEPING THE SCALE OF CONSTRUCTION COMPATIBLE WITH THE COUNTRY'S ECONOMIC CAPABILITY MR. CHEN WAS QUOTED AS SAYING COMMUNIST ELDERS REGULARLY ARE SHOWN ON TELEVISION DURING THE LUNAR NEW YEAR TO PASS ALONG THEIR GREETINGS MR. DENG HOWEVER HAS VISITED SHANGHAI DURING THE HOLIDAY EACH YEAR SINCE NINETEEN EIGHTY EIGHT AND NORMALLY RECEIVES EXCLUSIVE COVERAGE ON NEW YEAR'S EVE THIS TIME NOT ONLY DID HE SHARE THE T. V. TIME BUT MR. CHEN'S WORDS OF ADVICE ON THE ECONOMY WERE QUOTED MORE EXTENSIVELY THAN MR. DENG'S MR. DENG RETIRED FROM HIS LAST OFFICIAL GOVERNMENT POST IN NINETEEN NINETY AND NOW SPENDS MOST OF HIS TIME IN SECLUSION BUT HIS TRIP THROUGH SOUTHERN CHINA AND SHANGHAI IN NINETEEN NINETY TWO WHEN HE PRAISED CHINA'S FASTEST GROWING REGIONS AND OPENLY SCORNED CONSERVATIVE LEADERS IN OTHER AREAS UNLEASHED A FRANTIC ROUND OF DOMESTIC AND FOREIGN INVESTMENT THAT HAS KEPT ECONOMIC GROWTH ABOVE THIRTEEN PERCENT TO THIS DAY DAY TO DAY ECONOMIC MANAGEMENT IS NOW IN THE HANDS OF EXECUTIVE VICE PREMIER ZHU RONGJI WHO IS VIEWED AS FAVORING FAST AND THOROUGH REFORM BARRY L. SILER FORTY NINE YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT OF RISK MANAGEMENT AT THIS AVIATION FUELING SERVICES COMPANY MR. SILER WAS FORMERLY MARKETING MANAGER AT MIECO INCORPORATED A HOUSTON COMMODITIES TRADING COMPANY THE ARNOLD SCHWARZENEGGER OF PERSONAL COMPUTERS HAS ARRIVED AHEAD OF SCHEDULE AT A STORE NEAR YOU THE MACHINES WHICH ARE POWERED BY INTEL CORPORATION'S SPEEDY PENTIUM MICROPROCESSOR ARE HITTING STORE SHELVES ABOUT A YEAR FASTER THAN NEW COMPUTER MODELS HAVE IN THE PAST THE PENTIUM CHIP RUNS NEARLY TWICE AS QUICKLY AS ITS PREDECESSOR AS A RESULT VIDEO APPEARS LESS JERKY AND SWITCHING FROM SAY A MULTIMEDIA ENCYCLOPEDIA'S DINOSAUR FILE TO ONE ON SPACE TRAVEL TAKES AS LITTLE AS A SECOND INSTEAD OF AS LONG AS FIVE SECONDS QUOTE AMERICANS DON'T LIKE TO WAIT FOR ANYTHING QUOTE SAYS MARK MACGILLIVRAY MANAGING DIRECTOR OF H. AND M. CONSULTING IN SUNNYVALE CALIFORNIA FIVE SECONDS WAITING FOR A FILE TO OPEN SEEMS LIKE FOREVER IN THE PAST IT TOOK AS LONG AS TWO YEARS FOR SALES VOLUME TO DRIVE DOWN A NEW CHIP'S PRICE TO THE POINT WHERE THE CHIP COULD START FILTERING INTO HOMES FROM THE BUSINESS MARKET BUT COMPETITION IS SO GREAT IN THE COMPUTER INDUSTRY NOW THAT P. C. MAKERS HAVE CUT PRICES ON COMPUTERS WITH PENTIUM CHIPS TO BELOW THREE THOUSAND DOLLARS FROM AS HIGH AS SIX THOUSAND DOLLARS LAST YEAR AND ANALYSTS EXPECT THOSE PRICES TO FALL BELOW TWO THOUSAND DOLLARS BY YEAR'S END ON MONDAY INTERNATIONAL BUSINESS MACHINES CORPORATION'S I. B. M. P. C. COMPANY UNIT CUT PRICES AS MUCH AS NINETEEN PERCENT TO AS LOW AS FOUR THOUSAND ONE HUNDRED FORTY NINE DOLLARS ON PENTIUM BASED VALUEPOINT DESKTOPS FOR COMMERCIAL CUSTOMERS HELPING P. C. MAKERS LOWER THEIR PRICES IS THE FACT THAT INTEL OF SANTA CLARA CALIFORNIA HAS CUT ITS PENTIUM PRICES TO WARD OFF A GROWING CHALLENGE FROM RIVAL CHIP MAKERS ONE NEW COMPETITOR THE POWERPC DEVELOPED BY AN ALLIANCE OF APPLE COMPUTER INCORPORATED MOTOROLA INCORPORATED AND I. B. M. IS MORE POWERFUL IN CERTAIN FUNCTIONS THAN THE PENTIUM ANALYSTS SAY BUT DOESN'T YET RUN ALL SOFTWARE PROGRAMS AS WELL IT WILL MAKE ITS DEBUT IN PERSONAL COMPUTERS NEXT MONTH WHEN APPLE LAUNCHES ITS POWERPC LINE OF MACINTOSHES I. B. M. WILL FOLLOW WITH ITS OWN LINE OF POWERPC PERSONAL COMPUTERS LATER IN THE YEAR INTEL ALSO FACES PRESSURE FROM SMALLER CLONE COMPANIES LIKE ADVANCED MICRO DEVICES INCORPORATED AND CYRIX CORPORATION WHICH HAVE STEPPED UP PRODUCTION OF IMITATIONS OF EARLIER INTEL CHIPS INTEL SAYS PENTIUM WILL ACCOUNT FOR ABOUT FIFTEEN PERCENT OF ITS CHIP SHIPMENTS THIS YEAR AND ANALYSTS EXPECT THAT TO RISE TO MORE THAN HALF BY NEXT YEAR IN THE NEXT MONTH INTEL WILL BEGIN A PENTIUM MARKETING BLITZ AIMED AT BOTH HOMES AND BUSINESS AND IT WILL START ADVERTISING IN RETAIL STORES WITH FLIERS AND VIDEO KIOSKS INTEL ALSO PLANS TO CONTINUE COUNTERATTACKING ITS RIVALS BY PREVIEWING AT A TECHNICAL CONFERENCE NEXT WEEK A NEW PENTIUM CODE NAMED THE P. FIFTY FOUR C. ONE VERSION IS NEARLY FIFTY PERCENT FASTER THAN THE SPEEDIEST PENTIUM TO DATE ACCORDING TO AN INTEL TECHNICAL ABSTRACT ON MARCH SEVENTH INTEL PLANS TO UNVEIL A MIDRANGE MICROCHIP THAT COULD BE POPULAR FOR PORTABLES BECAUSE IT USES LOWER VOLTAGE EXTENDING BATTERY LIFE INTEL WEARY OF NAME COPYING BY CLONES IS SCRAPPING THE FOUR EIGHT SIX DESIGNATION AND CALLING IT THE D. X. FOUR THE ADVENT OF PENTIUM BASED P. C.S COINCIDES WITH AN EXPLOSION OF COMPUTER SALES TO HOMES WITH MANY BUYERS LOOKING FOR AS MUCH POWER AS POSSIBLE TO RUN THE MULTIMEDIA PROGRAMS OF TOMORROW THE BUYER IS GETTING MORE AND MORE AWARE OF WHAT THEY WANT AND WHAT THEY WANT IS PERFORMANCE SAYS MAL D. RANSOM VICE PRESIDENT OF MARKETING FOR PACKARD BELL ELECTRONICS INCORPORATED A BIG P. C. MAKER BASED IN WESTLAKE VILLAGE CALIFORNIA INDEED A SURVEY BY INTEL FOUND THAT TWO THIRDS OF ALL RETAIL P. C. PURCHASES IN NORTH AMERICA LAST YEAR INVOLVED COMPUTERS POWERED BY ITS FOUR EIGHT SIX CHIPS WHICH PRECEDED PENTIUM AS A TOP PERFORMER AND THAT FULLY TWO THIRDS OF THOSE FOUR EIGHT SIX BUYERS CHOSE THE MOST EXPENSIVE MACHINES PEOPLE ARE BUYING AT THE HIGH END OF THE MARKET SO THE MARKET IS RIPE FOR SUB THREE THOUSAND DOLLARS PENTIUMS SAYS PAUL OTELLINI AN INTEL SENIOR VICE PRESIDENT NOT EVERYONE OF COURSE WILL NEED TO RUN OUT AND BUY A PENTIUM MACHINE THE FOUR EIGHT SIX CHIPS THAT POWER THE MAJORITY OF P. C.S BEING SOLD NOW ARE MORE THAN SUFFICIENT TO RUN SUCH TASKS AS SPREADSHEETS AND WORD PROCESSING AND EVEN A BIGGER PROCESSOR WON'T SPEED UP ACCESS TO ON LINE SERVICES THAT ARE SLOWED BY TOO MUCH DEMAND ONCE THEY SEE WHAT A PENTIUM WILL DO THEY WON'T WANT TO GO BACK BUT FOUR EIGHT SIX IS MORE THAN A SERVICEABLE CHIP QUOTE SAYS MR. MACGILLIVRAY THE CONSULTANT THE MOST OBVIOUS ADVANTAGE OF STICKING WITH A FOUR EIGHT SIX CHIP FOR NOW IS PRICE THE FOUR HUNDRED EIGHTY SIX BASED P. C.S COST AS MUCH AS ONE THOUSAND DOLLARS LESS THAN A PENTIUM FOR THOSE CONSUMERS WHO WANT AS MUCH POWER AS POSSIBLE THERE IS A RANGE OF CHOICES A. S. T. RESEARCH INCORPORATED SAYS IT BEGAN SHIPPING ITS NEW PENTIUM LINE OF ADVANTAGE P. C.S LAST WEEK TO COMPUTER CITY PRICE SLASH COSTCO SAM'S CLUB AND INCREDIBLE UNIVERSE ESTIMATED SALES PRICES BEGIN AT TWO THOUSAND NINE HUNDRED NINETY NINE DOLLARS A. S. T. IRVINE CALIFORNIA SAYS IT HADN'T PLANNED TO BEGIN SHIPPING PENTIUM P. C.S TO RETAIL STORES FOR AT LEAST THREE MONTHS BUT MOVED UP THE DATE AFTER REQUESTS FROM RETAIL MANAGERS PACKARD BELL SAYS IT BEGAN SHIPPING ITS PENTIUM P. C.S THE LEGEND FIVE THOUSAND PRICED AT ABOUT TWO THOUSAND SEVEN HUNDRED DOLLARS INCLUDING MONITOR AND THE MULTIMEDIA LEGEND FIVE THOUSAND TWO HUNDRED PRICED AT ABOUT THREE THOUSAND DOLLARS WITH MONITOR ABOUT THREE WEEKS AGO PACKARD BELL OFFICIALS DECLINED TO IDENTIFY THE RETAIL OUTLETS BUT IT SELLS WIDELY IN SUCH MASS MARKET CHAINS AS PRICE SLASH COSTCO CIRCUIT CITY AND SEARS ROEBUCK AND COMPANY DON CLARK CONTRIBUTED TO THIS ARTICLE WHAT IS A CHIP A MICROPROCESSOR OR CHIP IS THE BRAINS OF A COMPUTER IT IS MADE UP OF MILLIONS OF MICROSCOPIC CIRCUITS THAT ACT AS SWITCHES AND ARE ETCHED INTO TINY SQUARES OF SILICON WHAT DO CHIPS DO THEY RUN EVERYTHING FROM P. C.S TO V. C. R.S AND WASHING MACHINES NEWER CHIPS ALLOW COMPUTERS TO DO MORE TASKS FASTER WHO MAKES THEM INTEL CORPORATION CONTROLS ABOUT EIGHTY PERCENT OF THE MARKET FOR PERSONAL COMPUTER CHIPS MOTOROLA INCORPORATED MAKES CHIPS USED IN CARS HOUSEHOLD APPLIANCES AND APPLE COMPUTERS POWERPC A CHIP DEVELOPED BY MOTOROLA APPLE AND INTERNATIONAL BUSINESS MACHINES CORPORATION WILL SOON COMPETE AGAINST THE INTEL LINE JAPAN'S MASSIVE NEW ECONOMIC STIMULUS PACKAGE IS PARTLY AIMED AT HELPING THE NATION'S TROUBLED BANKS THE ONLY PROBLEM IS THEY ARE GOING TO NEED MUCH MORE NEW MEASURES INCLUDING GIVING TAX BREAKS AND FREEING UP THE BANKS TO RAISE NEW CAPITAL ARE SUPPOSED TO BOOST BOTH THE BANKS AND JAPAN'S MORIBUND REAL ESTATE MARKET NONETHELESS QUOTE IT'S STILL GOING TO TAKE THE BANKS FIVE YEARS QUOTE TO ABSORB THEIR LOSSES SAYS BETSY DANIELS FINANCIAL ANALYST AT MORGAN STANLEY JAPAN LIMITED JAPAN'S BANKS ARE ALREADY REACTING TO THE NEW RULES SOME OF WHICH WERE EXPECTED BEFORE THEIR INCLUSION IN TUESDAY'S ONE HUNDRED FORTY BILLION DOLLARS ECONOMIC STIMULUS PACKAGE BANKS HAVE BEEN SELLING LARGE AMOUNTS OF STOCK TO MAXIMIZE FUTURE TAX BREAKS ON WEDNESDAY THEIR SELLING HELPED SHAVE FOUR HUNDRED NINE POINT EIGHT FIVE POINTS OR TWO PERCENT OFF THE NIKKEI STOCK AVERAGE WHICH CLOSED AT NINETEEN THOUSAND EIGHT HUNDRED FORTY ONE POINT THREE EIGHT MORE THAN FIFTEEN PERCENT OF THE STIMULUS PACKAGE IS AIMED AT BANKING AND REAL ESTATE THE GOVERNMENT WILL USE FIVE HUNDRED BILLION YEN FOUR POINT SIX BILLION DOLLARS PLUS SUBSIDIES AND NO INTEREST LOANS TO TAKE EXCESS LAND OFF THE MARKET THE LAND WILL BE WAREHOUSED SAYS A FINANCE MINISTRY OFFICIAL UNTIL DEMAND ACCELERATES LOCAL GOVERNMENTS WILL GET ONE POINT FIVE TRILLION YEN TO TAKE LAND OFF THE MARKET WITH THE AIM OF INCREASING THE VALUE OF LAND STILL AVAILABLE BANKS MEANWHILE WILL BE ALLOWED TO SET UP PAPER COMPANIES TO TAKE OVER THEIR RESTRUCTURED LOANS BUYING THEM BACK FROM THOSE COMPANIES AT A LOWER VALUE THE BANKS WILL BE ABLE TO MOVE NONPERFORMING LOANS OFF THE BOOKS AND GET TAX WRITE OFFS ON THE DIFFERENCE IN THE LOAN VALUE MITSUBISHI BANK LIMITED REGARDED AS ONE OF JAPAN'S HEALTHIEST BANKS IS BRINGING LONG HELD SHARES TO MARKET IN PREPARATION FOR RESTRUCTURED LOAN SALES COMPANY OFFICIALS SAY MITSUBISHI PLANS TO SELL AND REPURCHASE MORE THAN FORTY BILLION YEN OF STOCK USING THE PAPER PROFITS ON THE SALES TO WRITE DOWN DEBTS THE GOVERNMENT ALSO PLANS TO LET BANKS SHORE UP THEIR BALANCE SHEETS WITH PREFERRED SHARES AND OFFSHORE FUND RAISING JAPAN HAS ALREADY TRIED TO RESTART ITS BANKING SYSTEM WITH LOW INTEREST RATES ACTIVELY BUYING UP THE STOCK MARKET AND MODEST TAX RELIEF BUT STYMIED BY PAST LENDING MISTAKES BANKS HAVE MADE ALMOST NO NEW LOANS THAT'S HOLDING BACK THE OVERALL ECONOMY MS. DANIELS SAYS PEOPLE ARE STARTING TO REALIZE THAT YOU HAVE TO HAVE A CLEAR BALANCE SHEET BEFORE THE ECONOMY TURNS AROUND SHE SAYS NONE OF THE NEW MEASURES SOLVES THE UNDERLYING BAD DEBT PROBLEM BUT THE HOPE IS THAT THE PROGRAM MAY EFFECTIVELY PUT ASIDE MUCH OF THE PROBLEM UNTIL THE ECONOMY RECOVERS SUFFICIENTLY FOR COMPANIES TO ABSORB LOSSES WITHOUT DAMAGING GROWTH WHILE IT MIGHT BE FASTER AND IN THE LONG RUN CHEAPER FOR THE GOVERNMENT TO PLAY A MORE ACTIVE ROLE IN ABSORBING THE BAD DEBT FINANCE MINISTRY OFFICIALS SAY JAPANESE PUBLIC OPINION MAKES THAT IMPOSSIBLE THERE IS A FEELING THAT THE BANKS GOT THEMSELVES INTO THEIR PROBLEMS SAYS A SENIOR AIDE THEY CAN GET OUT OF THEIR PROBLEMS WITH THEIR OWN EARNINGS HOWEVER THAT WOULD MEAN SEVERAL YEARS WITH LOW BANK LENDING TOO LONG AS FAR AS THE ECONOMY IS CONCERNED WHAT'S MORE LIKELY ANALYSTS SAY IS THAT THE BANKS WILL EVENTUALLY DECLARE ANNUAL LOSSES BECAUSE OF BAD LOANS OR THE GOVERNMENT WILL STEP IN DIRECTLY TO BAIL OUT THE BANKS THE BEST WAY MS. DANIELS SAYS WOULD BE TO USE PUBLIC MONEY TO CAPITALIZE AN ORGANIZATION TO TAKE OVER THE BAD DEBTS AN ENTITY RESEMBLING THE RESOLUTION TRUST CORPORATION IN THE U. S. JAPANESE PRESS REPORTS ARE SPECULATING ON THE RESIGNATIONS OF ONE OR MORE BANK PRESIDENTS THIS SPRING THE BANKS DENY THE TALK OF RESIGNATIONS WHICH IN JAPANESE CORPORATE ETIQUETTE WOULD BE NECESSARY BEFORE A BANK COULD DECLARE A LOSS OR THE GOVERNMENT COULD STEP IN BANK OF SAN FRANCISCO COMPANY CARL GUSTAVSON FIFTY TWO YEARS OLD FORMER CHAIRMAN OF HIBERNIA BANK AND WILLARD SHARPE SEVENTY ONE FORMER CHIEF ASIAN ECONOMIST FOR CHASE MANHATTAN BANK WERE NAMED DIRECTORS OF THIS BANK HOLDING COMPANY ARKLA INCORPORATED SAID IT PLANS TO CHANGE ITS NAME TO NORAM ENERGY CORPORATION THE COMPANY SAID THE CHANGE IS SUBJECT TO SHAREHOLDERS' APPROVAL AT THE ANNUAL MEETING MAY TENTH THE COMPANY SAID THAT WITH THE ADDITION OF MISSISSIPPI RIVER TRANSMISSION ENTEX AND MINNEGASCO IT HAS OUTGROWN THE GEOGRAPHICAL BOUNDARIES SUGGESTED BY THE NAME ARKLA ARKLA'S THREE DISTRIBUTION DIVISIONS ENTEX MINNEGASCO AND ARKANSAS LOUISIANA GAS AS WELL AS MISSISSIPPI RIVER TRANSMISSION WILL RETAIN THEIR CURRENT IDENTITIES HOWEVER ARKLA ENERGY RESOURCES AND ARKLA ENERGY MARKETING WILL OPERATE UNDER NEW NAMES IN CONJUNCTION WITH THE CORPORATE NAME CHANGE BOEING COMPANY MOVED THE HEADQUARTERS OF ITS INFORMATION SERVICES BUSINESS TO WASHINGTON FROM SEATTLE IN A NEWS RELEASE BOEING INFORMATION SERVICES SAID IT DETERMINED THAT A CENTRAL LOCATION NEAR ITS CUSTOMERS ITS SUPPLIERS AND ITS TEAMING PARTNERS WILL POSITION BOEING QUOTE TO BEST SERVE THE MARKETPLACE QUOTE ADVERTISEMENTS FOR APPAREL AND BEAUTY CARE PRODUCTS ARE GETTING SOME COSMETIC CHANGES INSTEAD OF FEATURING MODELS WITH CHISELED FEATURES AND HIGH CHEEKBONES IN ITS NEW ADS SHISEIDO THE JAPANESE MAKER OF COSMETICS AND FACIAL CARE PRODUCTS IS USING A MINIMALIST DRAWING OF A WOMAN'S FACE OTHER FASHION AND BEAUTY PRODUCT ADVERTISERS ARE ALSO FORGOING MODELS IN FAVOR OF ILLUSTRATIONS OR NONHUMAN IMAGES LEVI STRAUSS AND COMPANY USED MATISSE LIKE ABSTRACT DRAWINGS IN ADS FOR ITS WOMEN'S CLOTHING AND ITS ILLUSTRATIONS DIDN'T ALWAYS DEPICT RAIL THIN WOMEN EITHER BARNEYS NEW YORK THE NEW YORK BASED CLOTHING STORE USES ILLUSTRATIONS IN ITS LATEST CAMPAIGN IN PART AN EXECUTIVE SAYS TO CONVEY A SENSE OF QUOTE WHIMSY QUOTE AND COTY'S BEST SELLING FRAGRANCE VANILLA FIELDS USES A HUMMINGBIRD INSTEAD OF A HUMAN SADAO ABE CHAIRMAN AND CHIEF EXECUTIVE OF SHISEIDO COSMETICS AMERICA A UNIT OF SHISEIDO OF TOKYO SAYS THE NEW ADS THE FIRST DESIGNED SPECIFICALLY FOR THE U. S. MARKET ARE BASED ON RESEARCH SHOWING THAT AMERICAN CONSUMERS DON'T WANT TO EMULATE THE PERFECT MODEL FACE THE DRAWING ALLOWS CUSTOMERS TO PROJECT THEMSELVES HE SAYS IF WE USED A MODEL THE CUSTOMER MAY THINK THE PRODUCT ISN'T FOR HER THE AD'S DESIGN ALSO LEAVES MORE ROOM FOR COPY THE AD WHICH APPEARS IN MARCH ISSUES OF ALLURE ELLE GLAMOUR AND MIRABELLA CONVEYS MORE STRAIGHTFORWARD INFORMATION ABOUT THE PRODUCT MR. ABE SAYS SOME MARKETING EXPERTS THINK SUCH AN APPROACH IS RISKY THIS JUST SHOWS SHISEIDO IS STILL UNABLE TO UNDERSTAND WHAT MAKES THE AMERICAN CONSUMER TICK SAYS ALLAN MOTTUS A HEALTH CARE AND BEAUTY MARKETING CONSULTANT QUOTE THEY HAVE A SUPER PRODUCT AND SUPER PACKAGING BUT WHEN IT COMES TO MARKETING TO THE AMERICAN WOMAN THEY HAVEN'T DONE WELL YOU SEE MANY WOMEN WANT TO EMULATE THOSE MODELS INDEED SHISEIDO IS STILL A SMALL PART OF THE U. S. COSMETIC BUSINESS ACCORDING TO MR. MOTTUS THE COMPANY RECORDED RETAIL SALES OF NINETY SIX MILLION DOLLARS IN NINETEEN NINETY TWO THE MOST RECENT AVAILABLE FIGURES CAPTURING ONE POINT FOUR PERCENT OF THE DEPARTMENT STORE COSMETICS MARKET MR. ABE REPORTS THAT LAST YEAR SHISEIDO'S SALES GREW ELEVEN PERCENT CAROL MOOG A PSYCHOLOGIST AND ADVERTISING CONSULTANT AT CREATIVE FOCUS IN BALA CYNWYD PENNSYLVANIA SAYS SHISEIDO'S SIMPLE DRAWING DOESN'T COMMUNICATE MUCH ABOUT THE BRAND IT LOOKS LIKE THEY'VE TRIED HARD NOT TO BE SHOWN AS PERFECTIONISTS SHE SAYS I DON'T FAULT THEM FOR TRYING TO DO SOMETHING DIFFERENT BARNEYS NEW YORK WHICH STILL USES MODELS IN SOME ADS LAST YEAR CREATED WHIMSICAL PRINT ADS DEPICTING SITUATIONS RANGING FROM A BLACK TIE RECEPTION TO CITY DWELLERS WAITING FOR A SUBWAY IN THE WINTER MODELS TEND TO BE MERCENARIES AND BE PERCEIVED AS GUNS FOR HIRE SAYS RONNIE COOKE CREATIVE DIRECTOR AND ASSOCIATE VICE PRESIDENT ADVERTISING AT BARNEYS SO THEY BECOME LESS BELIEVABLE THE MORE THEY'RE EXPOSED MS. COOKE SAYS THE BARNEYS ADS REFLECT QUOTE MUNDANE SITUATIONS AND SCENES FROM EVERYDAY LIFE QUOTE LEVI STRAUSS SAYS IT DECIDED TO LOOK AT AN ARTIST'S PORTFOLIO INSTEAD OF A MODEL'S PHOTOGRAPHS FOR ITS ADS FOR WOMEN'S APPAREL BECAUSE WE ARE TRYING TO SPEAK TO A LARGE AUDIENCE FROM FIFTEEN TO FORTY YEAR OLDS SAYS GEOFF THOMPSON SENIOR VICE PRESIDENT AND DEPUTY EXECUTIVE CREATIVE DIRECTOR AT FOOTE CONE AND BELDING COMMUNICATIONS' SAN FRANCISCO OFFICE WHICH HANDLES THE ACCOUNT IT IS VERY DIFFICULT TO USE ACTUAL MODELS AND HAVE THEM RELEVANT TO EACH AGE GROUP SAYS MR. THOMPSON WHO CONCEDES THERE WAS SOME RESISTANCE TO THE AD AGENCY'S PLAN WHEN IT WAS FIRST PRESENTED TO LEVI EXECUTIVES THEY ARE MERCHANTS AND THEY WANT TO SHOW REAL PRODUCT ON REAL PEOPLE AS OPPOSED TO REPRESENTATIVE PRODUCT ON REPRESENTATIVE PEOPLE BUT THE CAMPAIGN WHICH BEGAN IN PRINT THREE YEARS AGO WAS CONSIDERED SUCH A HIT THAT IT WAS USED IN LEVI'S TELEVISION COMMERCIALS LATE LAST YEAR SHISEIDO IS CONFIDENT IT WILL HAVE SIMILAR SUCCESS WE DON'T THINK THIS CARRIES ANY RISK SAYS MARI CHIHAYA SHISEIDO'S EXECUTIVE DIRECTOR OF ADVERTISING AND PUBLIC RELATIONS WE AREN'T TARGETING ANY ONE AGE GROUP WITH THIS AD IT EXPANDS OUR SCOPE THE LINE DRAWING IS AN APPEALING UNIVERSAL SYMBOL OF TIMELESSNESS GENTLENESS QUOTE CLINIQUE ESTEE LAUDER INCORPORATED THE CLOSELY HELD COSMETICS FIRM SAID IT HAS HIRED HAL RINEY AND PARTNERS SAN FRANCISCO TO CREATE A TELEVISION ADVERTISING CAMPAIGN FOR ITS CLINIQUE BRAND CLINIQUE SAID IT WILL CONTINUE CREATING ITS OWN PRINT ADS WITH SAATCHI AND SAATCHI'S A. C. AND R. ADVERTISING RETAINING MEDIA DUTIES FOR PRINT ADS BILLINGS HAVEN'T BEEN DETERMINED A CLINIQUE SPOKESWOMAN SAID ACCOUNT WATERFORD WEDGWOOD P. L. C. TAPPED OMNICOM GROUP'S ALTSCHILLER REITZFELD FOR ITS U. S. WEDGEWOOD ACCOUNT CONSOLIDATING ITS FIVE MILLION DOLLARS IN ADVERTISING WITH THE BOUTIQUE THE ACCOUNT WAS PREVIOUSLY AT AMMIRATI AND PURIS NEW YORK C. B. S. SPORTS STILL SMARTING FROM THE LOSS OF ITS THIRTY EIGHT YEAR NATIONAL FOOTBALL LEAGUE FRANCHISE IS PLANNING TO BE IN PERFECT FORM FOR THE OLYMPICS THE NETWORK IS FIERCELY INTENT ON BUILDING A QUOTE NEW TRADITION QUOTE OF WINTER OLYMPICS COVERAGE ACCORDING TO C. B. S. INCORPORATED'S CHAIRMAN LAURENCE TISCH C. B. S. HAS ALREADY LOCKED IN THE RIGHTS TO THE NINETEEN NINETY EIGHT WINTER GAMES WITH BOTH FOOTBALL AND MAJOR LEAGUE BASEBALL MOVING TO OTHER NETWORKS THIS YEAR THE WINTER GAMES WHICH BEGIN SATURDAY ARE THE BIGGEST SPORTS EVENTS ON THE C. B. S. ROSTER THE UNFOLDING SCANDAL SURROUNDING THE ATTACK ON SKATER NANCY KERRIGAN AND WHETHER TONYA HARDING HAD A ROLE IN IT HAS GIVEN C. B. S.'S COVERAGE OF THE GAMES IN LILLEHAMMER NORWAY A BIG BOOST THE PROMOTIONAL JOLT SURPASSES EVEN THE NETWORK'S OWN BLIZZARD OF ADS AND SOME PREDICT THAT THE WOMEN'S FIGURE SKATING FINAL ON FEBRUARY TWENTY FIFTH COULD SET AN OLYMPICS VIEWING RECORD THE TELECAST OF THE WOMEN'S SKATING FINAL IN NINETEEN NINETY TWO DREW TWENTY FIVE PERCENT OF ALL U. S. HOMES WITH T. V. SETS ACCORDING TO NIELSEN MEDIA RESEARCH THIS TIME SAYS DAVID POLTRACK C. B. S.'S SENIOR VICE PRESIDENT OF RESEARCH AND PLANNING THE NIGHT COULD DRAW THIRTY PERCENT DEPENDING ON WHETHER MS. KERRIGAN IS IN CONTENTION FOR A MEDAL AND WHETHER MS. HARDING GETS TO COMPETE TURNER BROADCASTING SYSTEM INCORPORATED'S T. N. T. NETWORK WILL AIR FORTY FIVE HOURS OF MOSTLY LIVE COVERAGE DURING WEEKDAY AFTERNOONS WHILE C. B. S.'S ONE HUNDRED TWENTY HOURS WILL BE MOSTLY TAPED C. B. S. HOWEVER HOLDS THE RIGHT TO EMBARGO EVENTS INCLUDING THE WOMEN'S SKATING FINAL C. B. S. HAS ALREADY RAISED ITS INTERNAL ESTIMATES OF HOW WELL THE GAMES WILL DO WITH VIEWERS THE NETWORK GUARANTEED ADVERTISERS AN AVERAGE AUDIENCE OF EIGHTEEN POINT SIX PERCENT OF THE NATION'S NINETY FOUR POINT TWO MILLION TELEVISION HOMES BUT MR. POLTRACK NOW PROJECTS THE GAMES WILL DRAW NINETEEN PERCENT OR MORE THAT PROJECTION IS BASED PARTLY ON A RECENT C. B. S. TELEPHONE POLL WHICH FOUND THAT THIRTY SEVEN PERCENT SAID THEY WOULD DEFINITELY WATCH THE WOMEN'S FIGURE SKATING COVERAGE THIS OLYMPICS IS AN UNUSUAL OPPORTUNITY FOR C. B. S. COMING JUST TWO YEARS AFTER THE ALBERTVILLE GAMES WHICH THE NETWORK ALSO TELEVISED THE TWO YEAR INTERVAL IS PART OF THE INTERNATIONAL OLYMPICS COMMITTEE'S PLAN TO GET THE WINTER AND SUMMER GAMES ON ALTERNATING CYCLES C. B. S. BASED ITS AMBITIOUS EIGHTEEN POINT SIX PERCENT RATING GUARANTEE ON THE EIGHTEEN POINT SEVEN PERCENT AVERAGE PRIME TIME RATING IT GOT FOR ALBERTVILLE WHEN IT BEAT THE OTHER NETWORKS ON FIFTEEN OF SIXTEEN NIGHTS THE MOST EVER FOR A WINTER OLYMPICS THE RISK THAT VIEWERS WON'T BE READY FOR ANOTHER MARATHON VIEWING EVENT SO SOON AFTER THE LAST IS OUTWEIGHED C. B. S. EXECUTIVES ARGUE BY VIEWERS' FAMILIARITY WITH THE ATHLETES THE LILLEHAMMER GAMES WILL FEATURE MANY OF THE ATHLETES WHO COMPETED AT ALBERTVILLE FROM MS. KERRIGAN TO SPEED SKATER BONNIE BLAIR THE NINETEEN NINETY TWO GAMES ALSO TAUGHT C. B. S. A LOT ABOUT WHICH EVENTS PLAY BEST WITH VIEWERS AMERICANS FOR EXAMPLE WON'T GET ANYTHING CLOSE TO THE EIGHTY HOURS OF CROSS COUNTRY SKIING TO BE AIRED IN NORWAY WHERE THAT SPORT IS A NATIONAL PASSION EVEN BEFORE THE ASSAULT ON NANCY KERRIGAN C. B. S. KNOWING HOW AMERICANS LOVE FIGURE SKATING HAD ALREADY SCHEDULED IT ON THIRTEEN NIGHTS AS OPPOSED TO TEN DURING THE NINETEEN NINETY TWO GAMES TONIGHT C. B. S. NEWS AND THE SYNDICATED NEWS SHOW INSIDE EDITION WILL BROADCAST INTERVIEWS WITH MS. HARDING INSIDE EDITION PAID MORE THAN THREE HUNDRED THOUSAND DOLLARS FOR ITS INTERVIEW FOR WHICH IT GOT EXCLUSIVITY UNTIL EYE TO EYE AIRS C. B. S. NEWS EXECUTIVES SAY THE NETWORK DIDN'T PAY FOR ITS INTERVIEW ANOTHER BIG QUESTION FOR C. B. S. IS HOW GREG GUMBEL WILL FARE AS FIRST TIME HOST C. B. S. MADE A SWITCH FROM ITS NINETEEN NINETY TWO'S ANNOUNCERS TIM MCCARVER AND PAULA ZAHN BECAUSE OF LUKEWARM REVIEWS INSTEAD IT IS GAMBLING ON MR. GUMBEL WHO PUT ON A PAIR OF SKIS FOR THE FIRST TIME WHEN HE POSED RECENTLY FOR A MAGAZINE PHOTO MR. GUMBEL SAYS THE FACT THAT HE DOESN'T PARTICIPATE IN WINTER SPORTS HE'S NEVER BEEN ON ICE SKATES EITHER WON'T HINDER HIS WORK FLIP IT AROUND HE SAYS DO THE PLAYERS MAKE THE BEST COMMENTATORS ON THE GAME RARELY IT'S THE EXCEPTION RATHER THAN THE RULE QUOTE OLYMPIC HOSTS TEND TO BE REMEMBERED AS MUCH FOR THEIR WARDROBES AS THEIR INTIMATE KNOWLEDGE OF SPORTS ANYWAY MR. GUMBEL WILL BE OUTFITTED BY A FRENCH DESIGN HOUSE CALLED FACONNABLE HE'LL WEAR SUITS AND SPORTCOATS WITH VESTS AND A TIE IS ALWAYS APPROPRIATE HE SAYS IN ADDITION TO THE STANDARD COTERIE OF EX OLYMPIANS AND SPORTS ANNOUNCERS REPORTING ON INDIVIDUAL EVENTS C. B. S. IS SPICING UP ITS COVERAGE WITH SOME UNUSUAL GUESTS SUCH AS GENERAL NORMAN SCHWARZKOPF HE'LL REPORT ON SUCH TOPICS AS A PROGRAM IN NORTHERN NORWAY TO TRAIN U. S. ARMED FORCES IN COLD WEATHER WARFARE EVEN LATE NIGHT HOST DAVID LETTERMAN IS PITCHING IN WITH OLYMPIC COVERAGE REPORTED BY HIS MOTHER DESPITE SOME UNEXPECTEDLY HIGH VALUEADDED TAXES FOR SERVICES IN NORWAY THE NETWORK EXPECTS TO HAVE LITTLE FINANCIAL RISK UNLIKE ALBERTVILLE WHERE C. B. S. BROKE EVEN MR. TISCH SAYS THE NETWORK WILL MAKE A PROFIT ON THE GAMES FOR WHICH IT PAID TWO HUNDRED NINETY FIVE MILLION DOLLARS IN RIGHTS FEES PRODUCTION COSTS WILL BE ABOUT SIXTY MILLION DOLLARS TEN PERCENT LESS THAN IN ALBERTVILLE ABOUT TWENTY FIVE MILLION DOLLARS WAS OFFSET BY SELLING WEEKDAY AFTERNOON RIGHTS TO T. N. T. IN ADDITION C. B. S. HAS SOLD ALL ADVERTISING SLOTS FOR A TOTAL OF ABOUT FOUR HUNDRED FORTY MILLION DOLLARS AS WITH ALBERTVILLE C. B. S.'S OVERALL STRATEGY WILL BE TO TELL STORIES WITH ITS COVERAGE BUT THERE WILL BE SOME HIGH TECH EVENT COVERAGE TOO THE HOCKEY GAMES FOR EXAMPLE WILL BE COVERED WITH A NEW GOALIE CAM MOUNTED IN THE GOALIE'S HELMET NETWORK EXECUTIVES EXPECT FEW TECHNICAL PROBLEMS THE WELL ORGANIZED NORWEGIANS WERE FAR AHEAD OF THEIR ALBERTVILLE COUNTERPARTS IN THE INSTALLATION OF SUCH ITEMS AS CAMERA PLATFORMS AND MANY OF THE VENUES WERE CONSTRUCTED SPECIFICALLY WITH TELEVISION IN MIND THE CROSS COUNTRY SKI TRAILS LOOP IN FRONT OF THE CAMERAS SO VIEWERS CAN SEE MORE THAN JUST THE TRADITIONAL CROSSING OF THE FINISH LINE C. B. S. WAS ALSO ABLE TO CUT PRODUCTION COSTS BY STORING SOME OF ITS NINETEEN NINETY TWO EQUIPMENT IN EUROPE BUT THAT MAY BE JUST A ONE TIME SAVINGS C. B. S. JUST PAID THREE HUNDRED SEVENTY FIVE MILLION DOLLARS FOR THE RIGHTS TO COVER THE NINETEEN NINETY EIGHT WINTER GAMES WHICH WILL BE HELD IN NAGANO JAPAN SMALL COMPANY STOCKS SHOWED WIDESPREAD GAINS WITH MAJOR INDEXES AGAIN APPROACHING RECORD LEVELS TRADERS SAID INVESTORS CONTINUE TO FOCUS ON SPECIFIC NEWS ABOUT COMPANIES RATHER THAN ON CONCERN ABOUT RISING INTEREST RATES AFTER THE FEDERAL RESERVE FRIDAY TIGHTENED MONETARY POLICY A NOTCH LATE LAST WEEK QUOTE WE HAD A QUICK AND DIRTY CORRECTION BUT NOW WE'RE RIGHT BACK IN IT SAID BRETT DISCHER VICE PRESIDENT OF EQUITY TRADING AT DAIN BOSWORTH THE RISE IN RATES WAS MORE PSYCHOLOGICAL THAN A MEANINGFUL EVENT HE SAID RATES AREN'T HIGH ENOUGH FOR PEOPLE TO FLOOD INTO INTEREST RATE INSTRUMENTS THE RUSSELL TWO THOUSAND INDEX OF SMALL COMPANY STOCKS ROSE ONE POINT EIGHT THREE OR ZERO POINT SIX NINE PERCENT TO TWO HUNDRED SIXTY FIVE POINT TWO TWO ABOUT TWO AND ONE HALF POINTS SHY OF ITS RECORD THE NASDAQ COMPOSITE INDEX CLIMBED THREE POINT EIGHT THREE OR ZERO POINT FOUR NINE PERCENT TO SEVEN HUNDRED EIGHTY SIX POINT FIVE THREE ON NASDAQ ADVANCERS OUTPACED DECLINERS ONE THOUSAND SEVEN HUNDRED FIFTY SIX TO ONE THOUSAND THREE HUNDRED FIFTY ONE ON VOLUME OF THREE HUNDRED THIRTY MILLION SHARES COMPARED WITH THREE HUNDRED TEN MILLION SHARES TUESDAY NATIONAL MARKET VOLUME ROSE TO TWO HUNDRED SEVENTY SEVEN MILLION SHARES FROM TWO HUNDRED SIXTY TWO MILLION SHARES ON TUESDAY AMERICAN MEDICAL ELECTRONICS CLIMBED SEVEN EIGHTHS OR SIX POINT NINE PERCENT TO THIRTEEN AND ONE HALF AFTER IT REPORTED FOURTHQUARTER EARNINGS OF TWENTY ONE CENTS A SHARE UP FROM NINE CENTS A YEAR EARLIER THE RICHARDSON TEXAS COMPANY MAKES MEDICAL DEVICES GATES SLASH F. A. DISTRIBUTING ROSE ONE AND ONE EIGHTH OR FIVE POINT FIVE PERCENT TO TWENTY ONE AND ONE EIGHTH ON NEWS THE GREENVILLE S. C. MICROCOMPUTER AND SOFTWARE DISTRIBUTOR IS MULLING A VARIETY OF ALTERNATIVES INCLUDING THE POSSIBLE SALE OF THE COMPANY AMERICA WEST AIRLINES PLUNGED TWENTY SEVEN THIRTY SECONDS OR THIRTY PERCENT TO TWO AND THREE EIGHTHS AFTER C. N. B. C. CORRESPONDENT DAN DORFMAN REPORTED THAT A MONEY MANAGER SAID THE PHOENIX BASED AIRLINE'S EQUITY MAY BE WORTH LITTLE IF ANYTHING THE COMPANY HAS BEEN OPERATING UNDER CHAPTER ELEVEN OF THE U. S. BANKRUPTCY CODE SINCE JUNE NINETEEN NINETY ONE MONEY MANAGER STEVE MACKLEM OF ARAUCA PARTNERS WHOM MR. DORFMAN NOTED HAS A SIGNIFICANT SHORT POSITION IN AMERICA WEST TOLD MR. DORFMAN THAT IF A PROPOSAL BY NEW YORK MONEY MANAGER MICHAEL STEINHARDT TO PUMP TWO HUNDRED FIFTY MILLION DOLLARS INTO THE COMPANY AND ACQUIRE EIGHTY PERCENT CONTROL GOES THROUGH CURRENT SHARES WILL BE CANCELED AND THE PUBLIC WOULD BE LEFT WITH PAPER IT COULD HANG ON THE BATHROOM WALLS SAPIENS INTERNATIONAL FELL THREE AND ONE HALF OR TWENTY POINT THREE PERCENT TO THIRTEEN AND THREE QUARTERS AFTER THE CARY N. C. SOFTWARE COMPANY SAID ITS NINETEEN NINETY THREE EARNINGS WILL FALL BELOW THE FORTY FIVE TO FIFTY CENTS A SHARE RANGE COMPARED WITH SIXTY NINE CENTS LAST YEAR SAMUEL GOLDWYN COMPANY WAS DOWN ONE OR EIGHT POINT SEVEN PERCENT TO TEN AND ONE HALF AFTER REPORTING THIRD QUARTER OPERATING EARNINGS OF THREE HUNDRED EIGHTY THREE THOUSAND DOLLARS COMPARED WITH EIGHT HUNDRED SIXTEEN THOUSAND DOLLARS A YEAR EARLIER THE AMEX TRADED HOLLYWOOD FILM COMPANY SAID IT HAD REDUCED ITS DEBT TO ABOUT FIFTY FIVE MILLION DOLLARS AT DECEMBER THIRTY FIRST FROM ABOUT NINETY FIVE MILLION DOLLARS A YEAR EARLIER SCOTT BLEIER VICE PRESIDENT OF TECHNICAL RESEARCH AT JOSEPHTHAL LYONS AND ROSS SAID THAT PRIOR TO THE FED'S TIGHTENING THERE HAD BEEN A WIDESPREAD PERCEPTION THAT THE FIRST UPTICK IN RATES WOULD LEAD TO A MAJOR CORRECTION AND CONSOLIDATION OF STOCK PRICES BUT HE SAID THE ABILITY OF THE MARKET TO SHRUG OFF THE RATE INCREASE AND TO PUSH BACK TOWARD RECORD LEVELS SHOWS THAT THE MARKET IS STILL IN TRANSITION FROM AN INTEREST RATE DRIVEN MARKET TO AN ECONOMY DRIVEN MARKET BUT MR. BLEIER WAS QUICK TO ADD QUOTE FROM A TECHNICAL PERSPECTIVE WE'RE NOT OUT OF THE WOODS YET QUOTE HE SAID THAT BEFORE THE MARKET CAN BREAK INTO VIRGIN TERRITORY IT WILL HAVE TO TEST THE LOWS HIT LATE LAST WEEK THE MARKET HE SAID CAN'T GO UP WITHOUT A BREAK MOREOVER HE EXPECTS INVESTORS TO SHOW CONTINUED CAUTION BECAUSE OF THE NEW INTEREST RATE STRUCTURE MR. BLEIER LOOKS FOR THE MARKET TO TEST ITS RECENT LOWS BEFORE THE END OF THE QUARTER BUT THAT TEST WILL ONLY SERVE AS A TEMPORARY SETBACK HE SAID THE BULL MARKET IS NOT OVER FINANCIER GEORGE SOROS IS NEGOTIATING WITH U. S. GOVERNMENT SUPPORTED RADIO FREE EUROPE SLASH RADIO LIBERTY TO TAKE OVER THE BROADCASTER'S RESEARCH INSTITUTE AND ARCHIVES SUCH A DEAL WOULD CREATE A MEDIA VENTURE THAT RESCUES SOME OF THE BROADCASTER'S ACTIVITIES FROM U. S. BUDGET CUTS BY PRIVATIZING AND INTEGRATING THEM INTO THE CENTRAL EUROPEAN UNIVERSITY A SOROS FINANCED GRADUATE SCHOOL WITH CAMPUSES IN PRAGUE AND BUDAPEST A DRAFT PROPOSAL FROM MR. SOROS'S PHILANTHROPIC ORGANIZATION THE SOROS FOUNDATIONS CALLS FOR MR. SOROS TO INVEST AS MUCH AS TWENTY FIVE MILLION DOLLARS DURING THE FIRST TWO YEARS TO MOVE THE INSTITUTE AND THE ARCHIVES TO PRAGUE FROM MUNICH AND TO COMPUTERIZE THE OPERATIONS THE BROADCASTING FACILITIES OF RADIO FREE EUROPE AND RADIO LIBERTY WHICH WILL REMAIN U. S. GOVERNMENT SUPPORTED ALSO MIGHT BE RELOCATED TO THE CZECH CAPITAL BUT THAT HAD BEEN UNDER CONSIDERATION EARLIER IN THREE YEARS RESPONSIBILITY FOR THE INSTITUTE WHICH PROVIDES WRITTEN NEWS SUMMARIES AND IN DEPTH REPORTS TO SUBSCRIBERS AND ITS CORE FINANCING WOULD COME UNDER THE CONTROL OF THE SOROS FOUNDATIONS UNDER THE PLAN THE INSTITUTE WOULD CONTINUE TO PROVIDE ITS SERVICES TO RADIO FREE EUROPE SLASH RADIO LIBERTY AND TO A NEW SCHOOL FOR MEDIA STUDIES AT THE UNIVERSITY THE ARCHIVES WITH THEIR RICH COLLECTION OF UNDERGROUND PUBLICATIONS FROM THE COMMUNIST ERA WOULD BECOME A VITAL RESOURCE FOR SCHOLARS ALTHOUGH THE BROADCASTER PLAYED A CRUCIAL ROLE DURING THE COLD WAR MANY PEOPLE NOW REGARD ITS OPERATIONS AS AN EXPENSIVE ANACHRONISM LAST YEAR PRESIDENT CLINTON WANTED TO AX THE BROADCASTER'S BUDGET BUT PROTESTS FROM EASTERN EUROPE AND CONCERN IN CONGRESS STOPPED THE MOVE THOUGH RADIO FREE EUROPE SLASH RADIO LIBERTY WAS SAVED ITS BUDGET IS TO BE SLASHED TO SEVENTY FIVE MILLION DOLLARS FOR FISCAL NINETEEN NINETY SIX FROM THE CURRENT TWO HUNDRED EIGHT MILLION DOLLARS IT ALSO WAS MANDATED TO SAVE MORE MONEY WHICH LED TO THE CURRENT PROPOSAL TO SPIN OFF AND PRIVATIZE THE INSTITUTE QUOTE WE CONSIDER THE SOROS PROPOSAL AN EXCITING SOLUTION THAT HELPS US CONTINUE THE WORK OF THIS PRESTIGIOUS ENTITY QUOTE SAID ROSS JOHNSON INTERIM PRESIDENT OF RADIO FREE EUROPE SLASH RADIO LIBERTY IT ALSO FITS WELL WITH THE ACTIVITIES OF THE SOROS FOUNDATIONS BESIDES RUNNING HIS SUCCESSFUL HEDGE FUND CALLED SOROS FUND MANAGEMENT THE HUNGARIAN BORN MR. SOROS HAS BEEN PUTTING MILLIONS OF DOLLARS INTO TWENTY TWO FOUNDATIONS IN EASTERN EUROPE AND SOUTH AFRICA TO SUPPORT CULTURAL HEALTH EDUCATION MEDIA AND OTHER PROJECTS HAROLD'S STORES INCORPORATED SAID SALES FOR ITS FISCAL YEAR ENDED JANUARY TWENTY NINTH INCREASED TWENTY THREE POINT SEVEN PERCENT TO SIXTY POINT NINE MILLION DOLLARS FROM FORTY NINE POINT THREE MILLION DOLLARS A YEAR EARLIER THE MEN'S AND LADIES' APPAREL RETAILER SAID SALES IN STORES OPEN A YEAR OR MORE ROSE SEVEN POINT FOUR PERCENT TO FORTY NINE POINT FIVE MILLION DOLLARS FROM FORTY SIX POINT ONE MILLION DOLLARS THE PREVIOUS YEAR THE COMPANY SAID CATALOG SALES LEAPT SIXTY EIGHT POINT SIX PERCENT TO FIVE POINT FOUR MILLION DOLLARS FROM THREE POINT TWO MILLION DOLLARS METALLGESELLSCHAFT CORPORATION A UNIT OF METALLGESELLSCHAFT A. G. HAS ARRANGED FOR UP TO THREE HUNDRED MILLION DOLLARS OF NEW LIQUIDITY TO BE PROVIDED BY ITS CREDITOR BANKS UNDER A NEW SECURED CREDIT FACILITY THE COMPANY SAID IN A STATEMENT THAT IN CONJUNCTION WITH THE NEW FACILITY IT AGREED WITH MOST OF ITS BANKS TO A NINETY DAY STANDSTILL PERIOD DURING WHICH IT WILL SEEK TO RESTRUCTURE ITS OUTSTANDING CREDIT FACILITIES GENERAL MOTORS CORPORATION'S THREE NONAUTOMOTIVE UNITS POSTED A COMBINED TWO POINT FIVE PERCENT DECLINE IN FOURTH QUARTER NET INCOME REFLECTING LOWER PROFIT BY THE HUGE FINANCE SUBSIDIARY TOGETHER G. M.'S FINANCE DEFENSE AND COMPUTER SERVICES UNITS HAD NET INCOME IN THE FOURTH QUARTER OF SIX HUNDRED FIFTY FIVE POINT TWO MILLION DOLLARS DOWN FROM THE YEAR EARLIER SIX HUNDRED SEVENTY ONE POINT EIGHT MILLION DOLLARS G. M. IS TO REPORT COMPANYWIDE FOURTH QUARTER FINANCIAL RESULTS TODAY SECURITIES ANALYSTS EXPECT THE NUMBER ONE AUTO MAKER TO POST A FOURTH QUARTER PROFIT SOMEWHERE BETWEEN EIGHT HUNDRED SIXTY FIVE MILLION DOLLARS AND NINE HUNDRED SEVENTY MILLION DOLLARS OR ONE DOLLAR AND FIFTEEN CENTS AND ONE DOLLAR AND THIRTY ONE CENTS A SHARE THAT WOULD COMPARE WITH A YEAR EARLIER NET LOSS OF SIX HUNDRED FIFTY ONE POINT EIGHT MILLION DOLLARS QUOTE WE THINK IT WAS A FABULOUS QUARTER QUOTE SAYS JOHN CASESA OF WERTHEIM SCHRODER WHOSE ESTIMATE IS ON THE HIGH END OF THE RANGE GENERAL MOTORS ACCEPTANCE CORPORATION THE FINANCE UNIT SAID FOURTH QUARTER NET INCOME DECLINED TWENTY NINE PERCENT TO TWO HUNDRED SEVEN MILLION DOLLARS FROM THE YEAR EARLIER TWO HUNDRED NINETY MILLION DOLLARS THAT REFLECTED REDUCED ASSET LEVELS AND NARROWER INTEREST RATE MARGINS IN NORTH AMERICA WHICH WAS PARTLY OFFSET BY STRONG INTERNATIONAL RESULTS G. M. A. C. SAID THE FINANCE UNIT WAS HOBBLED BY THE DOWNGRADING IN LATE NINETEEN NINETY TWO OF THE PARENT COMPANY'S CREDIT RATING WHICH FORCED IT TO PULL IN ITS HORNS AND SHRINK THE ASSET BASE FOR A TIME BUT G. M. A. C. MAINTAINED THAT ITS RESULTS FOR NINETEEN NINETY THREE REACHED THE HIGH END OF OUR FORECAST LEVELS FOR ALL OF NINETEEN NINETY THREE G. M. A. C. REPORTED NET INCOME OF NINE HUNDRED EIGHTY ONE MILLION DOLLARS COMPARED WITH NINETEEN NINETY TWO EARNINGS OF NINE HUNDRED THIRTY SIX MILLION DOLLARS EXCLUDING THE EFFECTS OF AN ACCOUNTING CHANGE CHARGE THE NINETEEN NINETY TWO OPERATING NET WAS ONE POINT TWO TWO BILLION DOLLARS G. M. A. C. SAID IT PAID ONE POINT TWO FIVE BILLION DOLLARS IN DIVIDENDS TO THE PARENT COMPANY FOR NINETEEN NINETY THREE COMPARED WITH ONE POINT ONE BILLION DOLLARS FOR NINETEEN NINETY TWO ELECTRONIC DATA SYSTEMS CORPORATION G. M.'S COMPUTER SERVICES UNIT SAID FOURTH QUARTER NET INCOME ROSE FOURTEEN PERCENT TO TWO HUNDRED TWO POINT NINE MILLION DOLLARS OR FORTY TWO CENTS A SHARE FROM THE YEAR EARLIER ONE HUNDRED SEVENTY EIGHT MILLION DOLLARS OR THIRTY SEVEN CENTS A SHARE LES ALBERTHAL THE E. D. S. CHAIRMAN ATTRIBUTED THE GAINS TO A FOURTEEN PERCENT INCREASE IN NON G. M. BUSINESS DURING THE FOURTH QUARTER FOURTH QUARTER REVENUE ROSE EIGHT PERCENT TO TWO POINT THREE ONE BILLION DOLLARS FOR ALL OF NINETEEN NINETY THREE E. D. S. SAID NET INCOME HIT A RECORD SEVEN HUNDRED TWENTY FOUR MILLION DOLLARS OR ONE DOLLAR AND FIFTY ONE CENTS A SHARE ON RECORD REVENUE OF EIGHT POINT FIVE SIX BILLION DOLLARS THAT REPRESENTS A FOURTEEN PERCENT EARNINGS GAIN FROM NINETEEN NINETY TWO'S NET OF SIX HUNDRED THIRTY FIVE POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND THIRTY THREE CENTS A SHARE ON REVENUE OF EIGHT POINT TWO TWO BILLION DOLLARS E. D. S. SAID IT LINED UP SEVEN POINT OH THREE BILLION DOLLARS IN NEW CONTRACTS DURING THE YEAR G. M.'S BOARD EARLIER THIS WEEK BOOSTED THE DIVIDEND ON G. M. CLASS E. SHARES WHICH REPRESENT AN INTEREST IN E. D. S. EARNINGS TO TWELVE CENTS QUARTERLY FROM TEN CENTS CLASS E. STOCK EDGED DOWN FIFTY CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CLOSING AT THIRTY ONE POINT EIGHT SEVEN FIVE DOLLARS A SHARE G. M. HUGHES ELECTRONICS CORPORATION THE DEFENSE AND ELECTRONICS UNIT REPORTED THAT FOURTH QUARTER NET INCOME ROSE TWENTY PERCENT TO TWO HUNDRED FORTY FIVE POINT THREE MILLION DOLLARS OR SIXTY NINE CENTS A SHARE FROM THE YEAR EARLIER TWO HUNDRED THREE POINT EIGHT MILLION DOLLARS OR FIFTY NINE CENTS A SHARE RESULTS FOR THE MOST RECENT QUARTER INCLUDE A THIRTY TWO MILLION DOLLAR CHARGE ON THE SALE OF A UNIT AND RESULTS FOR BOTH PERIODS INCLUDE A THIRTY ONE MILLION DOLLAR CHARGE RELATED TO G. M. PURCHASE ACCOUNTING ADJUSTMENTS REVENUE IN THE FOURTH QUARTER ROSE SIX POINT EIGHT PERCENT TO THREE POINT SEVEN OH BILLION DOLLARS G. M. HUGHES SAID THE INCREASE IN FOURTH QUARTER EARNINGS LARGELY REFLECTED HIGHER SALES OF AUTOMOTIVE ELECTRONICS TO G. M. AND TO NON G. M. CUSTOMERS THE COMPANY OBSERVED THAT THE ELECTRONICS CONTENT ROSE EIGHT POINT EIGHT PERCENT TO EIGHT HUNDRED FIFTY THREE DOLLARS PER G. M. NORTH AMERICAN VEHICLE AND THAT G. M.'S NORTH AMERICAN VEHICLE PRODUCTION ROSE FIFTEEN PERCENT IN THE QUARTER COMPARED WITH A YEAR EARLIER FOR ALL OF NINETEEN NINETY THREE G. M. HUGHES NET INCOME WAS SEVEN HUNDRED NINETY SEVEN POINT EIGHT MILLION DOLLARS OR TWO DOLLARS AND THIRTY CENTS A SHARE ON REVENUE OF THIRTEEN POINT FIVE ONE BILLION DOLLARS THE NINETEEN NINETY THREE EARNINGS INCLUDE A FIFTY TWO POINT TWO MILLION DOLLAR AFTER TAX GAIN ON THE SALE OF A THIRTY PERCENT INTEREST IN JAPAN COMMUNICATIONS SATELLITE COMPANY THE THIRTY TWO MILLION DOLLAR CHARGE ON THE SALE OF A UNIT AND ONE HUNDRED TWENTY THREE POINT EIGHT MILLION DOLLAR CHARGE RELATED TO PURCHASE ACCOUNTING ADJUSTMENTS THAT COMPARES WITH A NINETEEN NINETY TWO NET LOSS OF ONE POINT OH FIVE BILLION DOLLARS OR TWO DOLLARS AND TWENTY NINE CENTS A SHARE ON REVENUE OF TWELVE POINT THREE OH BILLION DOLLARS THE NINETEEN NINETY TWO LOSS INCLUDES A SPECIAL RESTRUCTURING CHARGE OF SEVEN HUNDRED FORTY NINE POINT FOUR MILLION DOLLARS AN ACCOUNTING CHANGE CHARGE OF EIGHT HUNDRED THIRTY TWO POINT ONE MILLION DOLLARS AND A ONE HUNDRED TWENTY THREE POINT EIGHT MILLION DOLLAR PURCHASE ACCOUNTING ADJUSTMENT CHARGE G. M. CLASS H. SHARES WHICH REPRESENT A DIVIDEND INTEREST IN G. M. HUGHES EARNINGS CLOSED UP TWENTY FIVE CENTS AT THIRTY SEVEN DOLLARS AND SEVENTY FIVE CENTS IN BIG BOARD COMPOSITE TRADING YESTERDAY THE G. M. BOARD EARLIER THIS WEEK RAISED THE DIVIDEND ON CLASS H. SHARES TO TWENTY CENTS QUARTERLY FROM EIGHTEEN CENTS ON THE EVE OF A TRADE SUMMIT BETWEEN THE LEADERS OF THE U. S. AND JAPAN U. S. TRADE REPRESENTATIVE MICKEY KANTOR SUSPENDED NEGOTIATIONS ON A RANGE OF BILATERAL TRADE ISSUES MR. KANTOR'S MOVE WAS CLEARLY MEANT TO SIGNAL THE U. S.'S DISPLEASURE AT THE PACE OF THE TALKS AND TO PUT MAXIMUM PRESSURE ON TOKYO TO MAKE CONCESSIONS THE DOLLAR RETREATED AGAINST THE YEN ON FEARS THAT A U. S. JAPAN TRADE ACCORD WON'T BE REACHED IN TIME FOR THE SUMMIT EVEN BEFORE MR. KANTOR'S MOVE JAPAN DISPATCHED FOREIGN MINISTER TSUTOMU HATA TO THE U. S. YESTERDAY A DAY AHEAD OF SCHEDULE TO TRY TO PATCH THINGS UP YET UPON ARRIVING IN WASHINGTON LAST NIGHT MR. HATA TOLD REPORTERS HE HAD NO NEW PLANS TO OFFER MEANTIME MR. KANTOR SAID IN A NEWS BRIEFING EARLIER IN THE DAY THAT QUOTE WE ARE STUCK AT DEAD CENTER QUOTE STILL BILATERAL TALKS HAVEN'T BROKEN DOWN COMPLETELY WHILE THE NEGOTIATIONS BETWEEN BUREAUCRATS HAVE BEEN FROZEN MR. HATA IS EXPECTED TO MEET WITH TOP U. S. OFFICIALS TODAY MR. KANTOR SAID HE STILL EXPECTED THE TWO SIDES TO REACH AN AGREEMENT IN THE SO CALLED FRAMEWORK TRADE TALKS TOMORROW THAT'S WHEN PRIME MINISTER MORIHIRO HOSOKAWA AND PRESIDENT CLINTON ARE SCHEDULED TO MEET IN WASHINGTON FOR ABOUT TWO AND ONE HALF HOURS AND FINALIZE A TRADE ACCORD COVERING AUTOS AUTO PARTS INSURANCE MEDICAL EQUIPMENT AND TELECOMMUNICATIONS THE TWO SIDES REMAIN DEADLOCKED OVER THE U. S. INSISTENCE THAT JAPAN AGREE TO NUMERICAL TARGETS TO INCREASE ITS IMPORTS THE U. S. HAS DRAWN DEMANDS THAT WOULD IN ESSENCE COMMIT JAPAN TO DOUBLE ITS IMPORTS OF MANUFACTURED GOODS JAPAN SAYS IT REJECTS THOSE EFFORTS BECAUSE IT WOULD REQUIRE TIGHTER GOVERNMENT CONTROL OVER DOMESTIC INDUSTRIES AT A TIME WHEN JAPAN WANTS TO DEREGULATE THE DISPUTE OVER NUMERICAL GOALS HAS BEEN AT THE CORE OF THE TRADE FIGHT FOR EIGHT MONTHS BUT TUESDAY NIGHT AFTER ANOTHER DAY OF LENGTHY NEGOTIATIONS THE U. S. TRADE TEAM HUDDLED AT THE TRADE REPRESENTATIVE'S OFFICE AND DECIDED THAT THE TALKS WERE GOING NOWHERE AND NEEDED A JOLT U. S. OFFICIALS SAID THAT MR. KANTOR PRESSED THE GROUP TO CALL OFF TALKS SCHEDULED FOR YESTERDAY WITH SENIOR BUREAUCRATS AFTER SOME RESISTANCE THE GROUP AGREED BOWMAN CUTTER A WHITE HOUSE ECONOMIC OFFICIAL WHO IS LEADING THE U. S. NEGOTIATING TEAM TELEPHONED HIS COUNTERPART KOICHIRO MATSUURA JAPAN'S DEPUTY FOREIGN MINISTER AT ABOUT NINE THIRTY P. M. E. S. T. TO CANCEL YESTERDAY'S NEGOTIATIONS JAPANESE NEGOTIATORS SEEMED STUNNED BY THE NEWS AND SPENT YESTERDAY WAITING FOR A CALL WHICH DIDN'T COME TO RESUME TALKS IT'S RATHER DIFFICULT TO UNDERSTAND WHY THE U. S. TEAM DOESN'T TRY TO TAKE A BROADER VIEW OF THE HOSOKAWA GOVERNMENT'S POSITION SAID A JAPANESE NEGOTIATOR HE CITED TOKYO'S RECENT DECISIONS TO OPEN ITS RICE MARKET AND CLEAN UP ITS CONSTRUCTION INDUSTRY U. S. OFFICIALS SAID THEY DIDN'T THINK THEY WOULD KNOW UNTIL LATE TONIGHT AT THE EARLIEST WHETHER JAPAN WAS READY TO MOVE WE WILL WAIT UNTIL HELL FREEZES OVER FOR AN AGREEMENT WITH MEASUREMENTS SAID DEPUTY TREASURY SECRETARY ROGER ALTMAN THIS ENDLESS DEBATE OVER YES THERE'S PROGRESS IN JAPAN TRADE NO THERE ISN'T HAS GOT TO END MR. ALTMAN ALSO EXPRESSED THE ADMINISTRATION'S UNHAPPINESS WITH THE EXTENT OF JAPAN'S PROPOSED ONE YEAR TAX CUT HE CALLED THE PLAN THE EQUIVALENT OF REBATES WHICH WON'T DO MUCH TO SPUR CONSUMER SPENDING THE U. S. WANTS JAPAN TO BROADLY STIMULATE ITS RECESSION PLAGUED ECONOMY AND PUT IT IN THE POSITION TO INCREASE IMPORTS THE SUMMIT IS SHAPING UP AS A MAJOR TEST FOR BOTH PRIME MINISTER HOSOKAWA AND PRESIDENT CLINTON PARTICULARLY IF THE TWO SIDES CAN'T REACH AN AGREEMENT IF THE U. S. GETS TOUGH HOSOKAWA SUPPORTERS SAY THAT WOULD UPSET JAPAN'S FRAGILE REFORM MOVEMENT A MOVEMENT THEY INSIST THAT WILL BENEFIT THE U. S. IN THE LONG RUN BY MAKING THE JAPANESE GOVERNMENT AND ECONOMY MORE TRANSPARENT IF MR. CLINTON GOES EASY TRADE HAWKS SAY THE U. S. WILL AGAIN BE DUPED BY THE ILLUSION OF CHANGE IN AN INHERENTLY CLOSED JAPANESE SYSTEM YOSHI TSURUMI A PROFESSOR OF INTERNATIONAL BUSINESS AT BARUCH COLLEGE IN NEW YORK COMPARED MR. HOSOKAWA TO BORIS YELTSIN AND WARNED THAT TOO MUCH AMERICAN GRIPING COULD HURT THIS VERY DIFFICULT PROCESS OF CHANGE JAPANESE OFFICIALS ALSO WORRY THAT A TRADE FRACAS COULD UNDERMINE BROADER COOPERATION BETWEEN THE TWO COUNTRIES AT A CRITICAL TIME QUOTE IT WOULD BE VERY UNFORTUNATE IF BILATERAL RELATIONS GO WRONG SOLELY BECAUSE OF NUMERICAL TARGETS FOR AUTOS INSURANCE AND GOVERNMENT PROCUREMENT QUOTE YUKIO HATOYAMA ONE OF MR. HOSOKAWA'S TOP AIDES SAID IN AN INTERVIEW YESTERDAY IF THE SUMMIT IS CONSIDERED A FAILURE HE WARNED THE DAMAGE WILL BE VERY BIG U. S. BUSINESS EXECUTIVES HOWEVER ARE GROWING TIRED OF THIS PLEA I QUESTION WHETHER THE U. S. SHOULD PLACE ITS HOPES IN ONE POLITICIAN IN A FELLOW DEMOCRACY INSTEAD OF MAKING LONG RANGE ECONOMIC PLANS INDEPENDENT OF PERSONALITIES SAID JOHN STERN HEAD OF THE TOKYO OFFICE OF THE AMERICAN ELECTRONICS ASSOCIATION IN WASHINGTON THE ECONOMIC STRATEGY INSTITUTE A THINK TANK THAT TAKES A HARD LINE TOWARD JAPAN PUT TOGETHER A LETTER SIGNED BY FIFTY BUSINESS OFFICIALS AND TRADE GROUPS BACKING THE CLINTON APPROACH OF DEMANDING QUANTIFIABLE RESULTS IN TRADE TALKS WITH JAPAN SHOULD THE TALKS FALL APART JAPANESE NEGOTIATORS ARE READY TO BLAME U. S. INTRANSIGENCE A JAPANESE OFFICIAL IN WASHINGTON SAID THAT THE TWO SIDES ARE VERY CLOSE TO AN END TO THESE NEGOTIATIONS BECAUSE JAPAN HAS ANNOUNCED A FISCAL STIMULUS PACKAGE AND HAS AGREED TO MAKE PROCEDURAL CHANGES IN ITS GOVERNMENT PROCUREMENT THE ONLY THING THAT ISN'T AGREED TO IS NUMERICAL TARGETS THE OFFICIAL SAIDWHICH THE U. S. CONSIDERS THE NUB OF THE CONTROVERSY THIS PAST WEEK WHEN MESSRS KANTOR AND CUTTER WERE IN TOKYO THE JAPANESE OFFICIAL SAID THEY WERE CLEARLY TOLD THAT JAPAN WOULDN'T BACK DOWN OVER THE ISSUE OF NUMERICAL GOALS BUT MR. KANTOR HEARD THINGS DIFFERENTLY REPORTING THAT FOREIGN MINISTER HATA WAS SILENT ON THAT ISSUE BUT U. S. OFFICIALS DON'T KNOW WHETHER THAT MEANS MR. HATA WAS SIGNALING AN OPENING OR SIMPLY TRYING TO GET AWAY FROM THE TWO AMERICANS WITHOUT AN ARGUMENT ORBITAL COMMUNICATIONS CORPORATION REACHED AN AGREEMENT WITH I. D. B. MOBILE COMMUNICATIONS INCORPORATED TO RESELL ORBITAL'S ORBCOMM GLOBAL SATELLITE SERVICES TO MARINE INDUSTRIES I. D. B. MOBILE IS A JOINT VENTURE OF IDM COMMUNICATIONS GROUP INCORPORATED AND TELEGLOBE INTERNATIONAL INCORPORATED OF CANADA IN A NEWS RELEASE THE COMPANY SAID I. D. B. MOBILE OFFERS MOBILE SATELLITE SERVICES TO COMMERCIAL AND PRIVATE MARITIME AVIATION AND LAND MOBILE CUSTOMERS WORLDWIDE ORBITAL SAID I. D. B. MOBILE WILL MARKET THE ORBCOMM SERVICES TO ITS MORE THAN FIVE THOUSAND MARITIME COMMUNICATIONS CUSTOMERS FOR SHIPPING FISHING FLEETS OIL RIGS AND TANKERS ORBITAL COMMUNICATIONS IS A UNIT OF ORBITAL SCIENCES CORPORATION I. D. B. MOBILE COMMUNICATIONS INCORPORATED IS A JOINT VENTURE OF I. D. B. COMMUNICATIONS GROUP INCORPORATED AND TELEGLOBE INTERNATIONAL INCORPORATED OF CANADA IN AN ARTICLE THURSDAY I. D. B. COMMUNICATIONS WAS MISIDENTIFIED AS ONE WHO LIVED THROUGH THE MYRIAD INVESTIGATIONS LAUNCHED AS A RESULT OF THE FAILURE OF CHARLES KEATING'S LINCOLN SAVINGS IN NINETEEN EIGHTY NINE I HAVE MORE THAN A PASSING INTEREST IN THE ALLEGATIONS SURROUNDING THE CLINTONS' INVOLVEMENT WITH WHITEWATER DEVELOPMENT CORPORATION AND MADISON GUARANTY SAVINGS AND LOAN THE CLINTONS AND THEIR DEFENDERS REPEATEDLY ARGUE THAT BECAUSE THE CLINTONS ALLEGEDLY SUFFERED A LOSS ON THEIR INVESTMENT IN WHITEWATER THEY COULD NOT HAVE ENGAGED IN ANY WRONGDOING YET EVEN IF THE CLINTONS DID LOSE MONEY ON THE SPECIFIC WHITEWATER INVESTMENT THE RELATIONSHIP THEY DEVELOPED WITH THEIR BUSINESS PARTNER AND MADISON OWNER JIM MCDOUGAL PROFITED THEM HANDSOMELY IN TERMS OF CAMPAIGN CONTRIBUTIONS HANDSHAKE LOANS AND ACCESS TO POWERFUL PEOPLE MORE IMPORTANT THE COZY RELATIONSHIP BETWEEN THE CLINTONS AND MADISON MAY HAVE KEPT MADISON ALIVE LONGER THAN IT SHOULD HAVE MAGNIFYING THE BILL TO THE TAXPAYERS INDEED MANY OF THE ISSUES THAT APPEAR RELEVANT TO MADISON AND WHITEWATER ARE IDENTICAL TO THOSE SCRUTINIZED SO EXHAUSTIVELY WITH RESPECT TO LINCOLN HERE ARE A FEW COMPARISONS THAT MERIT SCRUTINY BY THE SPECIAL COUNSEL APPOINTED BY JANET RENO TO INVESTIGATE THE CASE UNFAIR INFLUENCE CHARLIE KEATING WAS PILLORIED FOR HIS GENEROUS DONATIONS TO POLITICIANS INCLUDING THE QUOTE KEATING FIVE QUOTE IN THE SENATE WHO WENT TO BAT FOR HIM IN DEALING WITH ZEALOUS REGULATORS WITHOUT DIMINISHING THE SIGNIFICANCE OF THE POLITICAL PRESSURE THOSE SENATORS COULD IMPOSE UPON THE REGULATORS ULTIMATELY IT WAS ONLY PRESSURE THEY COULD BRING THE KEATING FIVE HAD NO DIRECT CONTROL OVER LINCOLN'S SUPERVISION AND THE REGULATORS EVENTUALLY TRIUMPHED OVER BOTH LINCOLN AND THE SENATORS RUINING A FEW CAREERS IN THE PROCESS IN CONTRAST BILL CLINTON AS GOVERNOR HAD THE POWER TO HIRE AND FIRE THE ARKANSAS SECURITIES COMMISSIONER RESPONSIBLE FOR SUPERVISING ALL STATE CHARTERED THRIFTS IN NINETEEN EIGHTY FIVE SHORTLY AFTER MADISON HAD RECEIVED A NEGATIVE REGULATORY AUDIT NOTING ITS UNSAFE AND UNSOUND PRACTICES AND SHORTLY AFTER MR. MCDOUGAL RAISED THIRTY FIVE THOUSAND DOLLARS TO KNOCK OUT A PERSONAL DEBT BILL AND HILLARY CLINTON OWED FROM THE LATEST GUBERNATORIAL RACE MR. CLINTON FIRED THE SITTING COMMISSIONER AND REPLACED HIM WITH A LONGTIME FRIEND AND POLITICAL SUPPORTER THUS MR. CLINTON HAD LIFE AND DEATH POWER OVER THE BUREAUCRAT WITH LIFE AND DEATH POWER OVER MADISON NEVER MIND THE CLINTONS' SMALL INVESTMENT WITH WHITEWATER MR. MCDOUGAL HAD JUST PROVED HIS USEFULNESS TO MR. CLINTON IN OTHER WAYS HOW USEFUL WOULD HE BE IF HIS S. AND L. WERE TAKEN OVER THE CLINTONS AT THE VERY LEAST HAD AN INCENTIVE TO PROVIDE AS SYMPATHETIC AN EAR AS POSSIBLE TO MR. MCDOUGAL AND MADISON AND THEY SEEM TO HAVE DONE IT CRONYISM ANOTHER OF MR. KEATING'S ACTIONS THAT OUTRAGED THE PUBLIC WAS THE HIRING ON A MONTHLY RETAINER OF A CALIFORNIA LAW FIRM WHOSE SENIOR PARTNER WAS ONE OF GOVERNOR GEORGE DEUKMEJIAN'S CLOSEST POLITICAL ADVISERS THIS FIRM REPRESENTED MR. KEATING'S INTERESTS BEFORE THE CALIFORNIA SECURITIES COMMISSION HEADED BY A LAWYER FORMERLY EMPLOYED BY THE SAME FIRM AFTER LINCOLN WAS SEIZED THE FIRM AND ITS LAWYERS WERE ACCUSED OF USING THEIR CONNECTIONS WITH THE DEUKMEJIAN ADMINISTRATION TO PROP UP A TOTTERING INSTITUTION THEY ALONG WITH OTHER KEATING LAWYERS WERE SUED AND ULTIMATELY SETTLED FOR SEVERAL MILLION DOLLARS MR. MCDOUGAL WENT MR. KEATING ONE BETTER TAKING A BELT AND SUSPENDERS APPROACH TO THE STATE REGULATORY PROCESS NOT CONTENT WITH THE KNOWLEDGE THAT A FRIEND OF BILL'S WAS NOW THE SECURITIES COMMISSIONER HE WENT TO HILLARY RODHAM CLINTON FOR HIS LEGAL REPRESENTATION PLACING HER ON A MONTHLY RETAINER MRS. CLINTON'S ASSIGNMENT WAS TO REPRESENT MADISON BEFORE THE ARKANSAS SECURITIES COMMISSIONER AFTER THE FEDERAL DEPOSIT INSURANCE CORPORATION ISSUED ITS REPORT OF MADISON'S UNSAFE AND UNSOUND PRACTICES MRS. CLINTON'S LOBBYING APPARENTLY SUCCEEDED ARMED WITH AN INDEPENDENT AUDIT SHE PERSUADED HER FRIEND THE STATE REGULATOR TO KEEP MADISON OPEN DURING THE NEXT YEAR MADISON MORE THAN DOUBLED IN SIZE AND LEFT A BIGGER CRATER FOR THE TAXPAYERS TO FILL WHEN IT WAS FINALLY SEIZED MISLEADING THE REGULATORS ONE OF CHARLIE KEATING'S BIGGEST SINS WAS ALLEGEDLY MISLEADING THE REGULATORS BY FILE STUFFING CREATING DOCUMENTS THAT ALTHOUGH CREATED AFTER THE FACT WERE WRITTEN IN THE PRESENT TENSE TO LEAVE THE IMPRESSION THAT LOAN AND REAL ESTATE UNDERWRITING WAS THOROUGH AND COMPLETE AT THE TIME A PARTICULAR TRANSACTION WAS ENTERED INTO IN THE KEATING CASE SUCH CONDUCT INVOLVED CRIMINAL PENALTIES SINCE MAKING FALSE ENTRIES AND MISLEADING THE REGULATORS ARE STRICTLY FORBIDDEN YET HILLARY RODHAM CLINTON'S LAW FIRM WHICH HAD REPRESENTED MADISON FOR SEVERAL YEARS BEFORE IT FAILED FLAGRANTLY MISLED THE F. D. I. C. AFTER THE AGENCY SEIZED MADISON IN NINETEEN EIGHTY SIX THE F. D. I. C. ELECTED TO SUE THE ACCOUNTING FIRM THAT HAD PRONOUNCED MADISON HEALTHY AND WHOSE REPORT MRS. CLINTON HAD VOUCHED FOR IN ARGUING FOR MADISON'S CONTINUED EXISTENCE THE F. D. I. C. LAWSUIT AGAINST THE ACCOUNTANTS SHOULD HAVE BEEN A BIG DEAL MADISON'S FAILURE COST SIXTY MILLION DOLLARS AGAINST REPORTED TOTAL ASSETS OF ONE HUNDRED TWENTY MILLION DOLLARS MEANING THAT FIFTY CENTS OF EVERY DOLLAR HELD BY MADISON AND ALLEGEDLY EXAMINED BY THE AUDITORS WAS PHONY AS WITH LINCOLN'S ACCOUNTANTS MADISON'S ACCOUNTING FIRM REPRESENTED A DEEP POCKET WITH WHICH TO COVER SOME OF THE LOSSES TO THE TAXPAYERS AMAZINGLY MRS. CLINTON'S LAW FIRM BID FOR AND WAS AWARDED THE REPRESENTATION TO SUE THE ACCOUNTING FIRM HOW COULD A LAW FIRM THAT ONLY A YEAR EARLIER HAD USED THE ACCOUNTANTS' REPORT TO HELP KEEP MADISON ALIVE NOW SUE THE ACCOUNTANTS FOR THE REPORT NORMALLY IN THE S. AND L. CARNAGE THAT RESULTED FROM DEREGULATION AND THEN REREGULATION LEGAL COUNSEL TO INSTITUTIONS THAT FAILED AS SPECTACULARLY AS MADISON AT LEAST EQUAL ON A PERCENTAGE OF ASSETS BASIS TO LINCOLN'S FAILURE EXPECTED TO FIND THEMSELVES ON THE RECEIVING END OF MAJOR LITIGATION ALMOST AS A MATTER OF COURSE MRS. CLINTON'S LAW FIRM IN FACT WAS AN INSTITUTION AFFILIATED PARTY AS DEFINED IN SECTION NINE HUNDRED ONE OF FIRREA AND THUS ITS OWN DEALINGS WITH MADISON SHOULD HAVE BEEN SCRUTINIZED CLOSELY MRS. CLINTON'S LAW FIRM ESCAPED SUCH A FATE THE OLD FASHIONED WAY APPARENTLY FLAGRANTLY MISREPRESENTING PRIOR TIES TO MADISON LATE WHITE HOUSE DEPUTY COUNSEL VINCENT FOSTER MRS. CLINTON'S PARTNER AT THE LAW FIRM WROTE TO THE F. D. I. C. IN AN EFFORT TO GET THE REPRESENTATION AGAINST THE ACCOUNTING FIRM STATING IN PERTINENT PART QUOTE THE FIRM DOES NOT REPRESENT ANY SAVINGS AND LOAN ASSOCIATION IN STATE OR FEDERAL REGULATORY MATTERS QUOTE THE PRESENT TENSE CHOSEN BY MR. FOSTER MAKES THE STATEMENT LITERALLY ACCURATE BUT ANY FIRST YEAR LAW STUDENT KNOWS THAT FRAUD CAN ARISE WHEN ONE OMITS MATERIAL FACTS NECESSARY TO MAKE A STATEMENT NOT MISLEADING I. E. THAT THE LAW FIRM HAD REPRESENTED MADISON IN THE EXTREMELY RECENT PAST LINCOLN'S LAWYERS GOT SUED FOR HUNDREDS OF MILLIONS OF DOLLARS MADISON'S LAWYERS NOT ONLY GOT OFF SCOT FREE BUT ALSO COLLECTED A FOUR HUNDRED THOUSAND DOLLAR FEE FOR SUING THE ACCOUNTANTS AND WINNING A PALTRY ONE MILLION DOLLAR SETTLEMENT MOREOVER IF IT CAN BE ESTABLISHED THAT WHITEWATER OR ITS PARTNERS RECEIVED ONE DOLLAR OF BENEFIT FROM MADISON INDIRECTLY OR DIRECTLY DIVERTED ANY BUSINESS OPPORTUNITY RIGHTFULLY BELONGING TO MADISON OR OTHERWISE PROFITED AT MADISON'S EXPENSE THEN A WHOLE NEW AREA OF INVESTIGATION OPENS WIDE WITH POSSIBLE PROHIBITED AFFILIATE TRANSACTIONS OF THE KIND THAT WERE FATAL TO MR. KEATING IT MUST BE NOTED THAT THE CONTRIBUTIONS TO THE KEATING FIVE THE COZY RELATIONSHIPS WITH STATE SUPERVISORS THE EMPLOYING OF INFLUENTIAL LAW FIRMS AND SO ON DID NOT DIRECTLY CONVICT CHARLES KEATING BUT THOSE THINGS DID FOCUS SUCH WIDESPREAD ATTENTION ON LINCOLN AND ITS OPERATIONS THAT THE FULL POWER AND WRATH OF THE U. S. GOVERNMENT EVENTUALLY CAME DOWN ON MR. KEATING'S HEAD IT WOULD SEEM ONLY LOGICAL THAT WHEN THE SAME OR MORE EXTREME INDICATORS OF QUESTIONABLE CONDUCT ARE PRESENT IN A CASE INVOLVING THE HIGHEST ELECTED OFFICIAL IN THE COUNTRY THE SAME STANDARDS OF SCRUTINY BE APPLIED LET'S BE FAIR APPLYING THE LINCOLN TEST TO MADISON WILL SHOW THAT WE DO HAVE A GOVERNMENT OF LAWS NOT MEN MR. THOMPSON IS A CINCINNATI ATTORNEY WHO WAS A VICE PRESIDENT AND CORPORATE COUNSEL FOR LINCOLN SAVINGS FROM NINETEEN EIGHTY FIVE TO NINETEEN EIGHTY NINE AETNA LIFE AND CASUALTY COMPANY REPORTED ITS FOURTH QUARTER LOSS WIDENED CONSIDERABLY BECAUSE OF PREVIOUSLY ANNOUNCED RESTRUCTURING CHARGES OF ONE POINT TWO EIGHT BILLION DOLLARS THE INSURANCE COMPANY SAID ITS NET LOSS IN THE QUARTER WIDENED TO ONE POINT ONE THREE BILLION DOLLARS OR TEN DOLLARS AND TEN CENTS A SHARE FROM ONE HUNDRED NINETY ONE POINT NINE MILLION DOLLARS OR ONE DOLLAR AND SEVENTY FOUR CENTS A SHARE A YEAR AGO LAST MONTH THE COMPANY SAID IT WOULD TAKE ONE POINT TWO EIGHT BILLION DOLLARS OF CHARGES TO DISCONTINUE PART OF ITS PENSION BUSINESS ELIMINATE FOUR THOUSAND JOBS OR NEARLY TEN PERCENT OF ITS WORK FORCE AND ADD TO WORKERS' COMPENSATION RESERVES FOLLOWING THE EARNINGS ANNOUNCEMENT STANDARD AND POOR'S CORPORATION SAID IT LOWERED THE CLAIMS PAYING ABILITY RATING OF THE COMPANY'S AETNA LIFE INSURANCE COMPANY TO SINGLE A PLUS FROM DOUBLE A MINUS CITING THE LARGE CHARGE THE RATING AGENCY AFFIRMED ALL AETNA'S OTHER RATINGS ALTHOUGH IT REVISED THE OUTLOOK ON THE SENIOR DEBT RATING TO NEGATIVE FROM STABLE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AETNA CLOSED AT SIXTY THREE DOLLARS UP ONE DOLLAR AND TWENTY FIVE CENTS FOR THE FULL YEAR AETNA SWUNG TO A LOSS OF THREE HUNDRED SIXTY FIVE POINT NINE MILLION DOLLARS OR THREE DOLLARS AND TWENTY NINE CENTS A SHARE FROM NET INCOME OF FIFTY SIX MILLION DOLLARS OR FIFTY ONE CENTS A SHARE A YEAR EARLIER WITHOUT THE CHARGES THE COMPANY SAID OPERATING EARNINGS FOR THE YEAR WOULD HAVE BEEN SIX HUNDRED TEN MILLION DOLLARS OR FIVE DOLLARS AND FORTY NINE CENTS A SHARE HELPED BY A SEVEN PERCENT REDUCTION IN OPERATING EXPENSES AND IMPROVED UNDERWRITING AND LOWER CATASTROPHE LOSSES IN THE PROPERTY SLASH CASUALTY BUSINESS IN NINETEEN NINETY TWO AETNA HAD OPERATING PROFIT OF ONE HUNDRED NINETY TWO MILLION DOLLARS OR ONE DOLLAR AND SEVENTY FOUR CENTS A SHARE AETNA QUOTE MADE GOOD PROGRESS TO IMPROVE OPERATING PERFORMANCE IN OUR BUSINESSES QUOTE SAID RONALD E. COMPTON CHAIRMAN HE SAID THE COMPANY'S AGGRESSIVE ACTION TO REDUCE THE DRAG ON EARNINGS FROM PAST BUSINESS DECISIONS AND TO CONTROL COSTS AND REDUCE THE SIZE OF ITS REAL ESTATE PORTFOLIO POSITIONS US WELL TO ENHANCE FUTURE RETURNS TO SHAREHOLDERS AS FOR THE S. AND P. DOWNGRADE AETNA SAID IT STRONGLY DISAGREES WITH S. AND P'S DECISION S. AND P. HAS NO BASIS FOR THIS ACTION SAID PATRICK W. KENNY AETNA'S CHIEF FINANCIAL OFFICER HE SAID THAT AETNA LIFE IS AN EVEN STRONGER COMPANY THAN IT WAS A YEAR AGO WITH IMPROVING STATUTORY OPERATING RATIOS AND ENORMOUS EARNINGS POTENTIAL AMERICAN TELEPHONE AND TELEGRAPH COMPANY SAID IT FORMED A JOINT VENTURE TO SUPPLY TELECOMMUNICATION PRODUCTS IN VENEZUELA A. T. AND T. SAID IT OWNS FIFTY ONE PERCENT OF THE JOINT VENTURE WITH THE REMAINING INTEREST OWNED BY ELECTROCONDUCTORES C. A. A VENEZUELAN PRODUCER OF TELECOMMUNICATIONS AND POWER CABLES A SPOKESWOMAN SAID A. T. AND T. IS INVESTING EIGHT MILLION DOLLARS TO TWELVE MILLION DOLLARS IN THE TWENTY MILLION DOLLAR VENTURE WHICH IS CALLED A. T. AND T. ELECON TELESISTEMAS C. A. NATO ORDERED SERBS TO HALT THEIR SHELLING OF SARAJEVO OR FACE AIR STRIKES THE ULTIMATUM GIVES THE BOSNIAN SERBS TEN DAYS TO EITHER WITHDRAW THEIR ARTILLERY MORTARS AND TANKS TWELVE MILES BEYOND THE CENTER OF SARAJEVO OR PLACE THOSE WEAPONS UNDER U. N. CONTROL ANY SHELLING BEFORE THAT COULD FACE IMMEDIATE RETALIATION U. S. OFFICIALS SAID AIR STRIKES COULD BE LAUNCHED AGAINST ARTILLERY EMPLACEMENTS ANTI AIRCRAFT WEAPONS AND MILITARY SUPPORT EQUIPMENT EVEN BEFORE THE NATO ULTIMATUM WAS ISSUED THE SERBS AGREED TO A CEASE FIRE IN SARAJEVO AND TOLD THE U. N. COMMANDER THERE THAT THEY WOULD WITHDRAW THEIR WEAPONS PRESIDENT CLINTON WHO HAD BEEN LOBBYING HARD FOR THE ULTIMATUM WITH WESTERN ALLIES EMPHASIZED THAT QUOTE NO ONE SHOULD DOUBT NATO'S RESOLVE NATO IS NOW SET TO ACT ISRAEL AND THE P. L. O. REACHED AN ACCORD ON THE GAZA STRIP AND JERICHO P. L. O. LEADER ARAFAT AND ISRAEL'S FOREIGN MINISTER PERES SAID IN CAIRO THAT THEY HAD AGREED ON SOME CRITICAL SECURITY ISSUES THAT HAVE STALLED AN ISRAELI P. L. O. PEACE ACCORD PERES SAID HE AND ARAFAT SETTLED FIVE OR SIX OF THE MOST COMPLICATED ISSUES INVOLVED IN TURNING OVER CONTROL OF THE OCCUPIED GAZA STRIP AND WEST BANK TOWN OF JERICHO TO THE PALESTINIANS BUT PERES ADDED WE DIDN'T COMPLETE OUR WORK THE FINAL ACCORD IS TO BE NEGOTIATED BETWEEN ARAFAT AND ISRAELI PRIME MINISTER RABIN ONE UNRESOLVED ISSUE IS HOW MUCH LAND AROUND JERICHO WILL BE CEDED TO THE PALESTINIANS A PANEL OF MEDICAL EXPERTS DECLARED THAT A BACTERIUM IS THE UNDERLYING CAUSE OF MOST PEPTIC ULCERS AND URGED DOCTORS TO BEGIN USING ANTIBIOTICS TO TREAT INFECTED PATIENTS THE RECOMMENDATIONS WOULD MARK A DRASTIC CHANGE IN ULCER TREATMENT NOW MOST PATIENTS ARE GIVEN DRUGS TO STOP PRODUCTION OF STOMACH ACID THE U. S. RECOGNIZED THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA AFTER TWO YEARS OF SIDESTEPPING IN DEFERENCE TO GREECE DIPLOMATIC TIES WILL BE ESTABLISHED ONCE MACEDONIA PLEDGES TO TRY TO RESOLVE DIFFERENCES WITH GREECE ATHENS CONTENDS THAT REFERRING TO THE COUNTRY AS MACEDONIA IMPLIES IT HAS A CLAIM ON THE GREEK PROVINCE OF MACEDONIA TONYA HARDING SUED THE U. S. OLYMPIC COMMITTEE FOR TWENTY MILLION DOLLARS TO BLOCK ANY ATTEMPT TO KEEP HER FROM SKATING IN THE WINTER OLYMPICS THE COMMITTEE HAS SET A HEARING FOR TUESDAY IN OSLO CONCERNING HARDING AND THE JANUARY SIXTH ATTACK ON A RIVAL SKATER NANCY KERRIGAN MANDELA SAID HIS AFRICAN NATIONAL CONGRESS WAS WILLING TO CONTINUE TALKS WITH WHITE RIGHT WING GROUPS CONCERNING APRIL'S ALL RACE ELECTIONS BUT HE AGAIN REJECTED A WHITE HOMELAND IN POSTAPARTHEID SOUTH AFRICA TALKS BETWEEN THE A. N. C. THE GOVERNMENT AND THE RIGHT WINGERS BROKE DOWN ON TUESDAY CLINTON VISITED A PRISON IN SUBURBAN MARYLAND TO UNVEIL A FEDERAL ANTIDRUG STRATEGY THAT WILL FOCUS ON TREATMENT RATHER THAN INTERDICTION THE THIRTEEN POINT TWO BILLION DOLLAR PLAN FOR NINETEEN NINETY FIVE WHICH REPRESENTS A ONE BILLION DOLLAR INCREASE OVER THIS YEAR BOOSTS SPENDING FOR TREATMENT EDUCATION AND PREVENTION THE PROGRAMS WILL TARGET HARD CORE ABUSERS SMOKING SIGNIFICANTLY INCREASES A WOMAN'S RISK OF DEVELOPING THE BONE THINNING DISEASE OSTEOPOROSIS ACCORDING TO A STUDY BY DOCTORS IN AUSTRALIA THE RESEARCH CONFIRMS THE FINDINGS OF SEVERAL PRIOR STUDIES THAT HAVE LINKED SMOKING AND A POTENTIALLY DANGEROUS REDUCTION IN BONE DENSITY POLAND'S SOLIDARITY TRADE UNION STAGED ITS BIGGEST DEMONSTRATION IN FOUR YEARS PROTESTING THAT LIVING CONDITIONS WERE DETERIORATING AND THAT THE GOVERNMENT HAD FAILED TO IMPLEMENT SOCIAL WELFARE POLICIES OVER TWENTY THOUSAND POLES MARCHED IN WARSAW TO DENOUNCE THE LEFTIST COALITION GOVERNMENT A SENATOR SUGGESTED THAT MYSTERIOUS ILLNESSES AFFLICTING HUNDREDS OF U. S. GULF WAR VETERANS WERE CAUSED BY IRAQI USE OF BIOLOGICAL WEAPONS DEVELOPED FROM CULTURES SENT FROM THE U. S. MICHIGAN DEMOCRAT RIEGLE SAID HE WAS DEEPLY TROUBLED THAT THE U. S. HAD PERMITTED EXPORT OF THE BIOLOGICAL CULTURES FROM NINETEEN EIGHTY FIVE TO NINETEEN EIGHTY NINE CHINA'S DENG APPEARED ON STATE T. V. FOR THE FIRST TIME IN OVER A YEAR ADVOCATING FASTER GROWTH FOR SHANGHAI THE PARAMOUNT LEADER EIGHTY NINE LOOKED FRAIL AS HE WAS SHOWN VISITING THE CITY GOODYEAR TIRE AND RUBBER COMPANY REPORTED A TWENTY NINE PERCENT JUMP IN FOURTH QUARTER PROFIT REFLECTING STRONGER OPERATING PERFORMANCE AND LOWER EXPENSES NET INCOME WAS ONE HUNDRED THIRTEEN POINT TWO MILLION DOLLARS OR SEVENTY SIX CENTS A SHARE COMPARED WITH EIGHTY SEVEN POINT FIVE MILLION DOLLARS OR SIXTY ONE CENTS A SHARE A YEAR EARLIER THE NINETEEN NINETY TWO FIGURE INCLUDED A ONE TIME LOSS OF FIFTEEN POINT THREE MILLION DOLLARS OR ELEVEN CENTS A SHARE FOR THE EARLY RETIREMENT OF DEBT SALES WERE TWO POINT NINE TWO BILLION DOLLARS COMPARED WITH TWO POINT NINE THREE BILLION DOLLARS ALTHOUGH THE NINETEEN NINETY TWO FIGURE INCLUDED ABOUT EIGHTY SEVEN MILLION DOLLARS OF SALES FROM DIVESTED ASSETS WORLD WIDE SALES IN NINETEEN NINETY THREE WERE ELEVEN POINT SIX FOUR BILLION DOLLARS DOWN FROM ELEVEN POINT SEVEN EIGHT BILLION DOLLARS EXCLUDING THE SALE OF DIVESTED ASSETS OVERALL SALES WOULD HAVE BEEN ELEVEN POINT THREE FIVE BILLION DOLLARS IN NINETEEN NINETY TWO QUOTE CONTINUED IMPROVEMENT IN OPERATING PERFORMANCE THE SALE OF ASSETS AND THE CONVERSION OF ONE HUNDRED SEVENTEEN MILLION DOLLARS OF EURO CONVERTIBLE DEBENTURES TO COMMON STOCK ENABLED THE COMPANY TO REDUCE ITS DEBT BY FIVE HUNDRED TWENTY FIVE MILLION DOLLARS TO ONE POINT FOUR BILLION DOLLARS AT THE END OF NINETEEN NINETY THREE QUOTE GOODYEAR SAID IN THE TIRE BUSINESS FOURTH QUARTER SALES ROSE TWO POINT SIX PERCENT TO TWO POINT FIVE ONE BILLION DOLLARS AND WERE UP TWO PERCENT TO NINE POINT NINE SIX BILLION DOLLARS FOR THE FULL YEAR OVERALL GOODYEAR'S SALES WERE FLAT IN THE U. S. FOR BOTH PERIODS DUE TO THE SALE OF DIVESTED ASSETS AMONG REGIONS OPERATIONS IN ASIA POSTED LOWER SALES AND OPERATING PROFIT REFLECTING SLUGGISH ECONOMIES AND THE ADVERSE EFFECT OF EXCHANGE RATES WE EXPECT NINETEEN NINETY FOUR TO BE A BETTER YEAR FOR SALES GROWTH IF THE WORLD ECONOMIES IMPROVE GOODYEAR SAID IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY GOODYEAR WAS UP SIXTY TWO POINT FIVE CENTS AT FORTY EIGHT POINT ONE TWO FIVE DOLLARS KEY PRODUCTION COMPANY SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE TWENTY THREE MILLION DOLLARS OF OIL AND NATURAL GAS PROPERTIES FROM A SELLER THAT WASN'T IDENTIFIED THE ENERGY CONCERN SAID THE PRODUCING PROPERTIES LOCATED PRIMARILY IN WYOMING AND UTAH AND SEVERAL ROCKY MOUNTAINS BASINS WOULD ADD ABOUT TWO POINT SIX MILLION BARRELS OF OIL AND EIGHT BILLION CUBIC FEET OF NATURAL GAS TO KEY PRODUCTION'S RESERVES OF ROUGHLY ONE POINT FIVE MILLION BARRELS OF OIL AND TWENTY EIGHT POINT SEVEN BILLION CUBIC FEET OF NATURAL GAS KEY PRODUCTION SAID THE AGREEMENT IS SUBJECT TO NEGOTIATION OF A BINDING PURCHASE AND SALE AGREEMENT AND LIKELY WILL BE COMPLETED IN MAY MCDERMOTT INTERNATIONAL INCORPORATED SAID A UNIT WILL RECEIVE ABOUT EIGHTY MILLION DOLLARS OF A ONE HUNDRED TWELVE MILLION DOLLAR CONTRACT AWARDED BY AN EGYPTIAN UTILITY MCDERMOTT SAID BABCOCK AND WILCOX COMPANY THE ENERGY SERVICES COMPANY'S MAJOR OPERATING UNIT LEADS THE CONSORTIUM THAT WILL BUILD A BOILER ISLAND FOR THE EGYPTIAN ELECTRIC AUTHORITY'S NEW POWER STATION SOUTH OF CAIRO AN ITALIAN CONSTRUCTION COMPANY NUOVA CIMIMONTUBI IS ALSO A MEMBER OF THE CONSORTIUM MICHAEL J. DOYLE PRESIDENT AND CHIEF EXECUTIVE WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR. DOYLE THIRTY FIVE YEARS OLD SUCCEEDS C. JOEL GLOVSKY SIXTY WHO WILL SERVE AS VICE CHAIRMAN AND EXECUTIVE VICE PRESIDENT STANDISH CARE IS A HEALTH CARE SERVICES CONCERN THAT PROVIDES HOUSING FOR FRAIL SENIOR CITIZENS FLAGSTAR COMPANIES JOSEPH A. APRILE FORTY NINE YEARS OLD WAS NAMED TO THE NEW POSITION OF PRESIDENT OF CANTEEN CORPORATION'S FOOD AND VENDING DIVISION MR. APRILE WAS FORMERLY PRESIDENT OF THE EASTERN DIVISION OF CANTEEN THE CONTRACT FOOD SERVICE DIVISION OF FLAGSTAR DAVID E. WILBUR JUNIOR WAS NAMED TO THE NEW POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER MR. WILBUR FIFTY ONE YEARS OLD WAS FORMERLY PRESIDENT OF CARLISLE PLASTIC'S FILM PRODUCTS GROUP WILLIAM H. BINNIE WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OF THE MAKER OF PLASTIC HANGERS AND OTHER PRODUCTS U. S. HEALTHCARE INCORPORATED BLUE BELL PENNSYLVANIA INCREASED ITS QUARTERLY DIVIDEND TO TWENTY CENTS A COMMON SHARE FROM SIXTEEN CENTS PAYABLE MARCH TWENTY SECOND TO STOCK OF RECORD MARCH EIGHTH THE COMPANY ALSO RAISED THE DIVIDEND ON ITS CLASS B. SHARES TO EIGHTEEN CENTS A SHARE FROM FOURTEEN POINT FOUR CENTS U. S. HEALTHCARE PROVIDES MANAGED HEALTH CARE SERVICES THE FEDERAL AVIATION ADMINISTRATION SAID IT WILL PROPOSE HOLDING COMMUTER AIRLINES TO THE SAME PILOT TRAINING STANDARDS AS LARGE AIRLINES THE ANNOUNCEMENT CAME DURING A HOUSE HEARING THAT WAS PROMPTED BY TWO RECENT FATAL CRASHES OF TURBOPROP PLANES THE F. A. A. HAS BEEN CRITICIZED FOR APPLYING LESS STRINGENT STANDARDS FOR COMMUTER AIRLINES' EQUIPMENT AND PILOTS ADMINISTRATOR DAVID HINSON TOLD LAWMAKERS YESTERDAY THE AGENCY IS WORKING TO NARROW THE GAP THE NEW PILOT TRAINING RULES ARE STILL BEING DRAFTED AND PROBABLY WON'T TAKE EFFECT FOR AT LEAST EIGHTEEN MONTHS THEY WOULD REQUIRE PILOTS OF ALL AIRPLANES WITH TEN OR MORE SEATS TO BE TRAINED THE SAME WAY ACCORDING TO ANTHONY BRODERICK THE F. A. A.'S ASSOCIATE ADMINISTRATOR FOR REGULATION AND CERTIFICATION CURRENTLY ALL AIRLINE PILOTS HAVE TO PASS THE SAME CERTIFICATION TESTS BUT THOSE FLYING AIRPLANES WITH THIRTY SEATS OR LESS HAVE LESS DETAILED TRAINING GUIDELINES THE F. A. A. SAID BUT WALTER COLEMAN PRESIDENT OF THE REGIONAL AIRLINE ASSOCIATION SAID THE COMMUTER AIRLINES HIS GROUP REPRESENTS ALREADY HAVE NARROWED THEIR TRAINING GAP WITH LARGE AIRLINES IN FACT HE SAID SOME COMMUTER AIRLINES ALREADY HAVE GAINED PERMISSION FROM THE F. A. A. TO FOLLOW LARGE PLANE TRAINING RULES FOR THEIR PILOTS THE F. A. A. ALSO SAID IT IS PURSUING RULES THAT WILL REQUIRE LARGE AND SMALL AIRLINES TO INCLUDE TRAINING PROGRAMS THAT TEACH CREW MEMBERS TO WORK BETTER AS TEAMS ACCORDING TO A PRELIMINARY NATIONAL TRANSPORTATION SAFETY BOARD REPORT THE PILOT OF AN EXPRESS TWO AIRLINES TURBOPROP FLIGHT THAT CRASHED LAST DECEMBER FIRST HAD FAILED FOUR PROFICIENCY TESTS IN FIVE YEARS WAS KNOWN FOR INTIMIDATING CO PILOTS AND WAS ANGRY WITH HIS COMPANY THE DAY OF THE CRASH THE SAFETY BOARD IS STILL INVESTIGATING THE ACCIDENT WHICH KILLED EIGHTEEN PEOPLE INCLUDING THE PILOT IT HASN'T FOUND ANY MECHANICAL EXPLANATIONS EXPRESS TWO OPERATES AS NORTHWEST AIRLINK TITAN CORPORATION SAID IT IS FORMING A SUBSIDIARY CALLED TITAN INFORMATION SYSTEMS TO DEVELOP MAKE AND MARKET COMMERCIAL INFORMATION SYSTEMS THE ELECTRONICS CONCERN SAID IT NAMED FREDERICK L. JUDGE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE UNIT MR. JUDGE WAS SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF HUGHES COMMUNICATIONS INCORPORATED A UNIT OF GENERAL MOTORS CORPORATION THE COMPANY SAID TITAN INFORMATION SYSTEMS IS BASED IN SAN DIEGO AND CONSOLIDATES TITAN'S COMMERCIAL INFORMATION PRODUCTS AND SYSTEMS BUSINESSES AT FIRST BLUSH ROGER SUMNER AND THE OTHER TWENTY FIVE THOUSAND PARTICIPANTS IN THE LOS ANGELES SCHOOL DISTRICT'S QUOTE FOUR HUNDRED THREE B. QUOTE RETIREMENT SAVINGS PLAN APPEAR TO ENJOY A WEALTH OF INVESTMENT CHOICES THEIR PLAN ALLOWS THEM TO SELECT AMONG ONE HUNDRED TWENTY DIFFERENT ANNUITIES AND INVESTMENT CONTRACTS EACH WITH ITS OWN MENU OF MUTUAL FUNDS AND OTHER OPTIONS THE TOTAL CHOICES MORE THAN ONE THOUSAND HUNDREDS OF TIMES THE NUMBER OF ALTERNATIVES TYPICALLY OFFERED TO MEMBERS OF FOUR HUNDRED ONE K. PLANS THE CORPORATE EQUIVALENT TO FOUR HUNDRED THREE B. S. BUT INSTEAD OF RIDING HIGH ON HIS PRIVILEGES MR. SUMNER FOR ONE IS PLANNING TO JUMP SHIP INTO NO LOAD MUTUAL FUNDS EXCLUDED FROM THE PLAN THE PROBLEM WITH FOUR HUNDRED THREE B. S. HE SAYS IS QUALITY NOT QUANTITY AND HE SHOULD KNOW SINCE HE IS THE ASSISTANT CONTRACTS SUPERVISOR FOR THE LOS ANGELES DISTRICT'S FOUR HUNDRED THREE B. DEALING WITH THE INSURERS AND BROKERS WHO PROVIDE THE PLAN'S INVESTMENT SERVICES FEW PARTICIPANTS IN THE LOS ANGELES DISTRICT'S PLAN ARE EQUIPPED TO MAKE SUCH QUALITY JUDGMENTS HOWEVER THAT IS BECAUSE UNLIKE MR. SUMNER THEY CAN'T EVEN GET A LIST OF THE NAMES OF THE ONE HUNDRED TWENTY CONTRACTS THEY MUST CHOOSE FROM LET ALONE DETAILS ABOUT THOSE CONTRACTS' INVESTMENT OPTIONS COSTS TERMS EXIT PENALTIES AND PERFORMANCE RECORDS UNFORTUNATELY WHEN IT COMES TO ADMINISTRATIVE TRUANCY THE LOS ANGELES DISTRICT IS FAR FROM UNIQUE MOST SCHOOL DISTRICTS ACROSS THE COUNTRY TAKE THE SAME HANDS OFF ATTITUDE TOWARD THEIR FOUR HUNDRED THREE B. PLANS TEACHERS' PLANS TEND TO HAVE THE LEAST SUPERVISION OF ANY RETIREMENT PLANS SAYS MICHAEL FOOTER A PRINCIPAL AT BENEFITS CONSULTANT WILLIAM M. MERCER IN RICHMOND VIRGINIA IN THE FOUR HUNDRED ONE K. AREA YOU HAVE A LEGAL OBLIGATION TO LOOK AT THE QUALITY OF THE PRODUCTS OFFERED HE SAYS BUT WITH TEACHERS' PLANS THERE'S NO JUDGMENT MADE ABOUT THE PRODUCTS TO BE SURE THERE ARE SOME NOTABLE EXCEPTIONS SUCH AS THE GIANT TEACHERS INSURANCE AND ANNUITY ASSOCIATION COLLEGE RETIREMENT EQUITY FUND WHICH GET HIGH MARKS NOT ONLY FOR CONSCIENTIOUS ADMINISTRATION BUT ALSO FOR THE LOW COST AND HIGH QUALITY OF THEIR INVESTMENT OPTIONS BUT IN GENERAL EXPERTS CAUTION LAX SUPERVISION IS WIDESPREAD IN THE FOUR HUNDRED THREE B. AREA AND IS ESPECIALLY ACUTE IN PUBLIC SCHOOL SYSTEMS SUCH LAXITY IS PERMISSIBLE BECAUSE PUBLIC SCHOOL SYSTEMS ARE AMONG THOSE EXEMPT FROM FEDERAL LAWS THAT GOVERN EMPLOYERS' FIDUCIARY DUTIES TOWARD WOULDBE RETIREES THOSE LAWS KNOWN AS THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OR ERISA DICTATE CERTAIN STANDARDS THAT EMPLOYERS MUST MEET IN SCREENING INVESTMENT PROVIDERS AND EDUCATING EMPLOYEES ABOUT THEIR RETIREMENT PLAN WHILE COMPANIES THAT FAIL TO MEET THOSE STANDARDS CAN LAND IN BIG TROUBLE SIMILAR MISDEEDS AT SCHOOL DISTRICTS CHURCHES GOVERNMENT OFFICES AGENCIES AND SOME NONPROFIT ORGANIZATIONS ARE PERFECTLY ACCEPTABLE UNDER THE LAW MEANWHILE ALTHOUGH NINETY PERCENT OF THE COMPANIES THAT PROVIDE INVESTMENTS TO FOUR HUNDRED THREE B. S. ARE INSURERS INSURANCE WATCHDOGS USUALLY DON'T POLICE THIS AREA NEITHER DO SECURITIES REGULATORS SINCE THE MUTUAL FUNDS IN FOUR HUNDRED THREE B. S. GENERALLY ARE OFFERED THROUGH ANNUITIES FROM INSURANCE COMPANIES COMPOUNDING THE PROBLEM OF ACCOUNTABILITY IS THE FACT THAT SCHOOL SYSTEMS USUALLY LACK THE RESOURCES TO STAFF BENEFITS DEPARTMENTS AND PROPERLY ADMINISTER THEIR PLANS AS A RESULT THE SCHOOL DISTRICTS USUALLY ARE SOLD INVESTMENT PROGRAMS RATHER THAN BEING ABLE TO IDENTIFY WHAT IS A GOOD PRODUCT SAYS MARVIN MERRILL EXECUTIVE VICE PRESIDENT OF THE NATIONAL EDUCATION ASSOCIATION'S MEMBER BENEFITS WHICH OVERSEES SUCH RETIREMENT PLANS WHAT'S MORE SCHOOL DISTRICTS AND OTHER FOUR HUNDRED THREE B. SPONSORS OFTEN RESIST TAKING RESPONSIBILITY FOR THEIR PLANS BECAUSE THAT IS THE BEST WAY TO ENSURE THEY WON'T BE HELD ACCOUNTABLE FOR POTENTIAL BLUNDERS QUOTE THE PHILOSOPHY OF THE BUREAUCRACY IS IF I DON'T HAVE THE SLIGHTEST IDEA OF WHAT'S GOING ON NO ONE CAN SAY I HAD ANYTHING TO DO WITH IT QUOTE MR. SUMNER SAYS IN THIS FIDUCIARY VACUUM A LOT OF WHAT'S DECIDED IS BASED ON POLITICS NOT WHAT'S THE BEST INVESTMENT SAYS JENNIFER STRICKLAND A CONSULTANT WITH MORNINGSTAR INCORPORATED A CHICAGO FIRM THAT TRACKS THE PERFORMANCE AND FEES OF VARIABLE ANNUITIES AND MUTUAL FUNDS SUCH LAISSEZ FAIR REGULATION MEANS THE FOUR HUNDRED THREE B. SPONSORS RELY HEAVILY ON THE ADVICE OF THE VERY BROKERS AND INSURANCE AGENTS WHO ARE TOUTING INVESTMENT PROGRAMS TO THE PLAN THE UPSHOT IS THAT FOUR HUNDRED THREE B. PLANS TYPICALLY DON'T BUY GOOD INVESTMENT PROGRAMS SAYS MR. MERRILL MANY FUNDS IN THE INVESTMENT PROGRAMS HAVE POOR PERFORMANCE AND HIGHER EXPENSES WITH SO LITTLE GUIDANCE TEACHERS AND OTHER SCHOOL DISTRICT EMPLOYEES MUST PRODUCE THEIR OWN REPORT CARD ON THEIR FOUR HUNDRED THREE B. INVESTMENTS FORTUNATELY SINCE MUCH OF THE MONEY IN TEACHERS' FOUR HUNDRED THREE B. PLANS IS INVESTED IN VARIABLE ANNUITIES PARTICIPANTS CAN CONSULT OUTSIDE BENCHMARKS TO SEE HOW THEIR INVESTMENTS COMPARE ON COST AND PERFORMANCE A RESOURCE WITH SUCH INFORMATION IS THE MONTHLY VARIABLE ANNUITY PERFORMANCE REPORT AVAILABLE FOR FIFTEEN DOLLARS FROM MORNINGSTAR EIGHT HUNDRED EIGHT HUNDRED SEVENTY SIX FIVE THOUSAND FIVE A VARIABLE ANNUITY IS A GROUP OF MUTUAL FUNDS WRAPPED INTO AN ACCOUNT AT AN INSURANCE COMPANY THE RETURN IS VARIABLE IT DEPENDS ON WHICH FUNDS YOU CHOOSE AND HOW WELL THEY PERFORM BY CONTRAST FIXED ANNUITIES PAY A SET RATE OF RETURN FOR SOME PERIOD SIMILAR TO A CERTIFICATE OF DEPOSIT BUT WITH A HIGHER RATE BECAUSE VARIABLE ANNUITIES ARE ESSENTIALLY MUTUAL FUNDS EACH FUND CAN EASILY BE GRADED AGAINST FUNDS WITH SIMILAR INVESTMENT OBJECTIVES FEES AND OTHER COSTS CAN BE COMPARED THE SAME WAY THE GOOD NEWS FOR PUBLIC SCHOOL EMPLOYEES WITH LOUSY INVESTMENT CHOICES IS THAT THEY CAN TRANSFER THEIR MONEY OUT OF THE PLAN INTO NO LOAD FUNDS OR INSURANCE COMPANY ANNUITIES OF THEIR CHOICE EVEN IF THESE CHOICES AREN'T ON THE LIST THAT THEIR SCHOOL DISTRICT APPROVES AND EVEN IF THEY DON'T CHANGE JOBS THIS LITTLE KNOWN RIGHT IS COVERED BY A NINETEEN NINETY I. R. S. REVENUE RULING NINETY TO TWENTY FOUR EXPLAINS MERCER'S MICHAEL FOOTER TO MAKE A TAX FREE TRANSFER YOU MERELY CONTACT THE MUTUAL FUND COMPANY OR BROKERAGE FIRM THAT HAS FOUR HUNDRED THREE B. CUSTODIAL TRANSFER ACCOUNTS IT WILL SEND YOU AN APPLICATION AND ARRANGE THE TRANSFER THERE ARE SOME CAVEATS HOWEVER YOU CAN TRANSFER ONLY ACCUMULATED SAVINGS AND MAY HAVE TO PAY SURRENDER PENALTIES TO GET OUT OF YOUR EXISTING ANNUITIES AND IF YOU MOVE YOUR MONEY INTO MUTUAL FUNDS YOU MAY NOT BE ABLE TO TAKE OUT LOANS ON THE MONEY SOMETHING MOST FOUR HUNDRED THREE B. ANNUITIES ALLOW YOU ALSO MAY GET SOME RESISTANCE FROM YOUR EMPLOYER OR INSURANCE COMPANY MANY AREN'T AWARE THAT SUCH TRANSFERS ARE LEGAL NOT ONLY FOR TEACHERS BUT ALSO FOR A NUMBER OF EMPLOYEES AT NONPROFIT ORGANIZATIONS SMITA VASAVADA A SOCIAL WORKER IN LONGVIEW TEXAS FACED SUCH OPPOSITION WHEN SHE TRIED TO TRANSFER HER MONEY FROM AN ANNUITY WITH GREAT WEST LIFE AND ANNUITY COMPANY THE INSURER TOLD HER THE MOVE WASN'T POSSIBLE BUT FINALLY CONCURRED WHEN SHE PERSISTED MRS. VASAVADA PLANS TO MOVE HER MONEY TO A FOUR HUNDRED THREE B. ACCOUNT WITH VANGUARD GROUP A NO LOAD MUTUAL FUND COMPANY EVEN THOUGH SHE WILL PAY SOME SURRENDER PENALTIES CALIFORNIA'S DEPARTMENT OF GENERAL SERVICES SIGNED A THREE YEAR QUOTE MASTER CONTRACT QUOTE WITH PACIFIC TELESIS GROUP UNIT PACIFIC BELL COMPRESSION LABS INCORPORATED AND TELE IMAGES INCORPORATED FOR VIDEOCONFERENCING EQUIPMENT NETWORK AND SYSTEM INTEGRATION SERVICES TRAINING AND MAINTENANCE PACIFIC BELL SAID THE CONTRACT COULD BE WORTH AS MUCH AS TEN MILLION DOLLARS DEPENDING ON HOW QUICKLY THE NETWORK GROWS AND THE NUMBER OF SYSTEMS THE STATE BUYS IF THERE IS A BETTER DEAL ANYWHERE THAN MACY'S CASHMERE BLEND SWEATERS ON SALE FOR THIRTY FOUR DOLLARS THAT BARGAIN HAS TO BE MACY ITSELF SO BELIEVES FEDERATED DEPARTMENT STORES INCORPORATED WHICH OWNS BLOOMINGDALE'S LAZARUS BURDINES RICH'S A AND S. AND JORDAN MARSH AND NOW IS TRYING TO GOBBLE R. H. MACY AND COMPANY RIGHT OUT OF BANKRUPTCY COURT BARELY A MONTH HAS PASSED SINCE FEDERATED ANNOUNCED IT BOUGHT CONTROL OF A CRITICAL PIECE OF ITS STRAPPED RIVAL'S DEBT FOR A MERE ONE HUNDRED NINE POINT THREE MILLION DOLLARS IN CASH UP FRONT DESPITE A PUBLIC CEASEFIRE FEDERATED IS STILL STALKING A RELUCTANT MACY BEHIND THE SCENES QUOTE I GIVE THEM A NINE IN TEN CHANCE QUOTE OF NABBING MACY SAYS DAVID MILLISON HEAD OF BANKRUPTCY RESEARCH AT DABNEY SLASH RESNICK A LOS ANGELES INVESTMENT FIRM FEDERATED'S SUCCESS DEPENDS AS MUCH ON THE RETAILER'S BRAZEN AND INNOVATIVE EXPLOITATION OF BANKRUPTCY LAW AS IT DOES ON THE GROWING REALIZATION AMONG MACY'S MANAGEMENT AND CREDITORS OF MACY'S PRECARIOUS FINANCIAL POSITION WITH SIX BILLION DOLLARS OF DEBT MACY HAS LITTLE HOPE OF REPAYING ANY BUT ITS MOST SENIOR CREDITORS BANKRUPTCY HAS ALREADY BECOME A FORM OF TAKEOVER FOR FINANCIAL SPECULATORS SAYS HUGH RAY A BANKRUPTCY LAWYER WITH ANDREWS AND KURTH NOW IT COULD BE THE COMPANIES' TURN BUT FEDERATED'S HIGH STAKES GAME ISN'T RISK FREE MACY'S MOST POWERFUL ALLY MAY PROVE TO BE FEDERAL BANKRUPTCY JUDGE BURTON LIFLAND WIDELY VIEWED AS A PRODEBTOR JURIST HE HAS THE POWER TO STRIP AWAY FEDERATED'S RIGHT TO VOTE ITS STAKE AND FOR ALMOST ANY REASON SUCH AS IF HE DECIDED FEDERATED HAD A CONFLICT OF INTEREST AS A MACY'S CREDITOR AND COMPETITOR A LOOK AT FEDERATED'S RAID ON MACY SUGGESTS HOW A TAKEOVER WAR CAN BE FOUGHT FAR FROM THE SPOTLIGHT OF PUBLIC MARKETS IN THE DIM RECESSES OF THE COURTS WHERE HOBBLED COMPANIES SEEK REFUGE VETERAN BANKRUPTCY INVESTORS SAY FEDERATED CHAIRMAN ALLEN QUESTROM AND HIS CHIEF STRATEGIST CHIEF FINANCIAL OFFICER RONALD TYSOE HAVE IGNITED A SLOW MOTION TAKEOVER THAT COULD LAST UNTIL YEAR END BUT WHATEVER HAPPENS TO MACY THEY BELIEVE FEDERATED WILL EMERGE A FINANCIAL WINNER MR. TYSOE WHO SPEARHEADED FEDERATED'S LIGHTNING FAST EMERGENCE FROM BANKRUPTCY COURT TWO YEARS AGO ISN'T ONE TO LET DETAILS GET IN THE WAY OF A GOOD MOVE LAST SUMMER DESPITE A HUNDRED DEGREE HEAT WAVE HE PACKED UP HIS HOUSE HIMSELF TO MOVE HIS FAMILY INTO A SPRAWLING NEW HOME IN A CINCINNATI SUBURB HE APPROACHED PRUDENTIAL INSURANCE COMPANY OF AMERICA WITH LIKE DETERMINATION LAST SUMMER MR. TYSOE WAS NO STRANGER TO PRUDENTIAL FEDERATED WAS THE INSURER'S SECOND LARGEST RETAIL BORROWER AND PRUDENTIAL HAD HELD SEVEN PERCENT OF THE CINCINNATI RETAILER'S STOCK THE INSURER WELCOMED HIS OVERTURES PRUDENTIAL HADN'T RECEIVED A CENT ON ITS EIGHT HUNDRED THIRTY TWO POINT FIVE MILLION DOLLAR LOAN TO MACY SINCE ITS LARGEST RETAILING BORROWER FILED FOR BANKRUPTCY COURT PROTECTION IN JANUARY NINETEEN NINETY TWO AND TOUGH NEW CAPITAL RULES FOR INSURERS WERE MAKING IT HARD TO KEEP A LOAN LIKE MACY'S ON THE BOOKS AT FACE VALUE IN NEGOTIATIONS THAT STRETCHED INTO DECEMBER MR. TYSOE HAMMERED OUT AN UNUSUAL SOLUTION FEDERATED AGREED TO BUY HALF OF PRUDENTIAL'S CLAIM PAYING ONLY ONE FOURTH UP FRONT WITH THE REMAINING THREE HUNDRED FORTY MILLION DOLLARS DUE OVER THREE YEARS WITH AN OPTION ON THE OTHER HALF OF THE DEBT LATER ON IN ONE STROKE FEDERATED GAINED CONTROL OF A ONE BILLION DOLLAR CLAIM SECURED BY MACY'S SEVENTY BEST STORES INCLUDING HERALD SQUARE THAT PUTS FEDERATED FIRST IN LINE TO BE REPAID FEDERATED GOT A BARGAIN IT IS PAYING ONLY EIGHTY SIX CENTS ON THE DOLLAR LESS THAN PRUDENTIAL EXPECTED TO GET BACK FROM MACY AT THE END OF THE BANKRUPTCY COURT PROCEEDING DESPITE THE LOAN'S TOP NOTCH COLLATERAL PRUDENTIAL EVEN AGREED TO LEND FEDERATED THE MONEY FOR ITS STAKE AT AN INTEREST RATE SO FAVORABLE THAT FEDERATED IS GUARANTEED TO BE PAID ABOUT THIRTY TWO MILLION DOLLARS A YEAR THROUGH THE END OF THE BANKRUPTCY COURT PROCEEDING BUT THE INSURER WAS CONTENT IT TURNED A NONPERFORMING LOAN INTO A GOOD ONE AND BOOKED A THIRTY MILLION DOLLAR PROFIT TO BOOT THIS COUP TRANSFORMS MR. QUESTROM A FLAMBOYANT MERCHANT WHO ONCE POSED WITH HIS WIFE IN BLACK TIE IN BLOOMINGDALE'S WINDOW WHEN FEDERATED WAS STILL IN BANKRUPTCY COURT PROCEEDING INTO THE FIRST CORPORATE CHIEFTAIN TO JOIN THE BRASS KNUCKLE CROWD KNOWN AS VULTURE INVESTORS VULTURES GRAB CONTROL OF THE MOST POWERFUL PIECE OF DEBT WREST CONTROL FROM THEIR PREY AND BLOCK ANY REORGANIZATION THEY DON'T LIKE SUCCESSFUL VULTURE INVESTORS SUCH AS APOLLO ADVISORS AND TRUST COMPANY OF THE WEST HAVE USED THAT STRATEGY TO GAIN CONTROL OF DOZENS OF COMPANIES MR. QUESTROM'S EMPIRE BUILDING RESTS ON PRUDENTIAL'S CONTROLLING BLOCK OF DEBT WITH IT FEDERATED HAS A HUGE ADVANTAGE IT IS UNLIKELY ANOTHER BIDDER WILL EMERGE BECAUSE FEDERATED CAN VETO ANY PLAN IT DOESN'T LIKE UNLESS IT GETS PAID OFF FULLY INCLUDING INTEREST TO UNSEAT FEDERATED MACY OR AN OUTSIDE BIDDER WOULD LIKELY HAVE TO COME UP WITH THE FULL ONE BILLION DOLLARS IN CASH OR STOCK FEDERATED IS CERTAINLY IN THE DRIVER'S SEAT SAYS BANKRUPTCY INVESTOR MARK DICKSTEIN OF DICKSTEIN PARTNERS AND COMPANY WHO SAYS HE ISN'T AN INVESTOR IN MACY DEBT THEY CAN DICTATE THE TERMS OF ALMOST ANY PLAN FURTHER FEDERATED CAN HUNT ITS QUARRY WITH THE SAME STEALTH TACTICS OTHER BANKRUPTCY RAIDERS USE UNLIKE IN THE STOCK MARKET WHERE MOST TAKEOVERS HAPPEN BANKRUPTCY COURT IS NOT A LEVEL PLAYING FIELD SECURED CREDITORS SUCH AS FEDERATED ARE FIRST IN LINE TO GET THEIR LOAN REPAID AND CAN OFTEN MUSCLE IN TO SEIZE LARGE CHUNKS OF THE POST BANKRUPTCY COMPANY'S NEW STOCK MOREOVER THE DEBT FEDERATED BOUGHT ISN'T SUBJECT TO THE SAME SECURITIES REGULATIONS AS PUBLIC STOCKHOLDINGS SO FEDERATED CAN BUILD ALLIANCES WITH OTHER CREDITORS WITHOUT DISCLOSING ITS INTENT OR POSITION BUT FEDERATED CAN'T RISK ALIENATING JUDGE LIFLAND THAT IS WHY MR. QUESTROM AND MR. TYSOE HAVE KEPT MUM ABOUT THEIR STRATEGY IN MEETINGS WITH OTHER CREDITORS SINCE JANUARY FEDERATED WILL OUTLINE THE VALUE OF A COMBINED COMPANY IN A MEETING WITH SECURED CREDITORS ON TUESDAY FEDERATED EXECUTIVES ARE BEING VERY SMART ABOUT BENDING OVER BACKWARDS TO BE ABLE TO PROVE IN COURT THAT THEY HAVE NOT ABUSED THEIR POSITION SAYS MR. RAY WHO ISN'T INVOLVED IN THE TAKEOVER CONTEST FEDERATED'S BIGGEST EDGE MAY COME FROM THE GROWING REALIZATION BY MACY'S MANAGEMENT OF THE COMPANY'S FINANCIAL STATUS AT THE SAME TIME PRUDENTIAL AND FEDERATED BEGAN TALKING MACY WAS EMBARKING ON THE NEXT PHASE OF NEGOTIATIONS WITH ITS CREDITORS TO MOVE THE RETAILER OUT OF BANKRUPTCY COURT AT THE END OF SEPTEMBER MR. ULLMAN PUT JAMES KENNEY A THIRTY FOUR YEAR OLD EX MCKINSEY CONSULTANT IN CHARGE OF SOFTENING UP MACY'S SENIOR CREDITORS THE BANKS AND MORTGAGE LENDERS WITH WHICH THE RETAILER HOPES TO KEEP DOING BUSINESS ONCE IT GETS OUT OF BANKRUPTCY COURT THESE CREDITORS ARE A FORMIDABLE ARRAY MACY OWES MONEY TO AMONG OTHERS TRUST COMPANY OF THE WEST AND A WORKING CAPITAL BANK SYNDICATE INCLUDING CHEMICAL BANKING CREDIT LYONNAIS OF FRANCE AND MITSUBISHI BANK LIMITED BUT THE MOST POWERFUL CREDITOR SECOND ONLY TO PRUDENTIAL IS FIDELITY INVESTMENTS THE MUTUAL FUND COMPANY THAT AGGRESSIVELY BOUGHT UP BANK DEBT TO ACCUMULATE A FOUR HUNDRED NINETY MILLION DOLLAR CLAIM THE NEWS MR. KENNEY HAD TO IMPART TO THEM WAS BLEAK ACCORDING TO PEOPLE WHO SAT IN ON THE TALKS HE TOLD THEM MACY'S BUSINESS WAS LIKELY TO CONTINUE DOING SO POORLY THAT THE RETAILER WOULDN'T BE ABLE TO CARRY MUCH MORE THAN ONE BILLION DOLLARS OF DEBT THIS MEANT THE SECURED CREDITORS WHO WERE OWED ABOUT TWO POINT FOUR BILLION DOLLARS IN PRINCIPAL AND INTEREST WOULD HAVE TO TAKE MUCH OF THEIR RECOVERY IN STOCK HOW MUCH STOCK FEDERATED AND THE OTHER SENIOR CREDITORS CAN GET DEPENDS ON WHAT MACY IS WORTH ORDINARILY A WOUNDED QUARRY LIKE MACY WOULD WANT TO FEND OFF ITS PREDATOR BY PAYING OFF THE DEBT FEDERATED OWNS AND SHOWING THE SUITOR THE DOOR BUT TO GET RID OF FEDERATED MACY WOULD HAVE TO COME UP WITH ONE BILLION DOLLARS OR ANOTHER TWELVE PERCENT LOAN ON SECURITY AS GOOD AS ITS BEST STORES OPTIONS IT CANNOT AFFORD PEOPLE PRESENT FOR THE FALL MEETINGS BETWEEN MACY AND ITS LENDERS SAY MACY'S FINANCIAL ADVISER BLACKSTONE GROUP TOLD CREDITORS THAT THE RETAILER IS WORTH BETWEEN THREE POINT ONE BILLION DOLLARS AND THREE POINT FIVE BILLION DOLLARS BUT PROBABLY NOT MORE THAN THREE POINT THREE BILLION DOLLARS QUOTE THE REALITY IS THAT THERE IS NOT ENOUGH VALUE HERE QUOTE SAYS A PERSON FAMILIAR WITH THE TALKS THE LONGER IT TAKES MACY TO WIN OVER CREDITORS THE MORE VALUE THE SENIOR SECURED LENDERS SUCH AS FEDERATED WILL RECEIVE THAT'S BECAUSE PRUDENTIAL FIDELITY AND THE BANKS ARE ENTITLED TO RECEIVE INTEREST ON THEIR CLAIMS BEFORE MACY'S BONDHOLDERS WHO ARE OWED ONE POINT THREE BILLION DOLLARS GET ONE CENT SO FEDERATED CAN AFFORD TO LIE IN WAIT AS INTEREST BUILDS UP ON ITS CLAIM THIS POSES A BIG PROBLEM FOR MACY'S MANAGEMENT MACY'S BEST CHANCE OF STAYING INDEPENDENT IS IF IT CAN PERSUADE ALL CREDITORS TO AGREE TO A CONSENSUAL PLAN INSTEAD OF FIGHTING ITS WAY OUT OF COURT BUT THE ONLY WAY TO PROVIDE BONDHOLDERS WITH MUCH OF A RECOVERY IS TO TAKE A PIECE OF THE PIE AWAY FROM SECURED CREDITORS THAT'S WHAT MR. KENNEY SET OUT TO DO BUT MACY UNDERESTIMATED ITS POWERFUL CREDITORS THE SAME PEOPLE FEDERATED WILL HAVE TO SWAY IN MID FALL CONVERSATIONS WITH PRUDENTIAL AND THE SO CALLED FORTY NINE STORE SYNDICATE BANK DEBT NOW OWNED ALMOST ENTIRELY BY FIDELITY INVESTMENTS MR. KENNEY VALUED THE STORES AS IF THEY WERE HELD NOT BY MACY BUT BY A THIRD PARTY TO DRIVE DOWN THE PROPERTIES' VALUE THAT WOULD MEAN THE LENDERS WOULD HAVE TO STAND IN LINE WITH UNSECURED BONDHOLDERS TO GET THE LAST PART OF THEIR RECOVERY PRUDENTIAL AND FIDELITY BALKED THEY TOLD MR. KENNEY IN NO UNCERTAIN TERMS THAT IF THE COMPANY WANTED TO STAY INDEPENDENT IT WOULD HAVE TO ASSIGN ALL ITS PROPERTY THE HIGH VALUE IT WAS REALLY WORTH SINCE DECEMBER MACY'S MANAGEMENT HAS BEEN SHIFTING GEARS BANKRUPTCY INVESTORS SPECULATE THAT MACY MANAGEMENT WILL TRY TO STRIKE AN ALLIANCE WITH FIDELITY ALIGNED WITH FIDELITY MACY COULD MUSTER THE FINANCIAL WHEREWITHAL TO NEUTRALIZE FEDERATED BY OFFERING THE RETAILER NEW DEBT AND DISTRIBUTING THE BULK OF ITS STOCK TO THE MUTUAL FUND GIANT AND OTHER SECURED CREDITORS THAT MOVE COULD SPELL BAD NEWS FOR BONDHOLDERS MACY'S TACTICAL REVERSAL MAY INDICATE THAT THE COMPANY IS RETHINKING ITS STRATEGY OF FORGING A CONSENSUAL PLAN IT ALSO INCREASES THE LIKELIHOOD OF A SO CALLED CRAM DOWN A PLAN OF REORGANIZATION THAT WOULD DISTRIBUTE LITTLE TO JUNIOR CREDITORS OVER THEIR OBJECTIONS IF SENIOR CREDITORS CAN SHOW THAT THERE IS NOT ENOUGH VALUE TO GO AROUND ROBERT MILLER OF BERLACK ISRAELS AND LIBERMAN WHO REPRESENTS THE BONDHOLDERS' COMMITTEE CALLS ANY SUGGESTION OF A CRAM DOWN IRRESPONSIBLE MACY IS PUTTING ON THE BRAKES RATHER THAN PRESS FORWARD WITH A PLAN OF REORGANIZATION AS MANY CREDITORS EXPECTED MACY WILL ASK THE BANKRUPTCY COURT TO EXTEND ITS EXCLUSIVE RIGHT TO PROPOSE SUCH A PLAN IN AN UNUSUAL HEARING SCHEDULED FOR FEBRUARY TWENTY SECOND THE AMERICANS MAY BE COMING TO VIETNAM BUT THE ASIANS AND THE EUROPEANS ARE ALREADY HERE WITH THE LIFTING LAST WEEK OF THE U. S. ECONOMIC EMBARGO AGAINST VIETNAM U. S. COMPANIES SUCH AS PEPSICO INCORPORATED AND AMERICAN EXPRESS COMPANY ARE SCRAMBLING TO GET BACK INTO THIS MARKET OF SEVENTY TWO MILLION PEOPLE AFTER EIGHTEEN YEARS OF BEING ALMOST COMPLETELY SHUT OUT BUT WHILE THE AMERICANS WERE AWAY ASIANS AUSTRALIANS AND EUROPEANS WERE MAKING HAY SETTING UP INVESTMENTS TOTALING SEVEN POINT FIVE BILLION DOLLARS SINCE NINETEEN EIGHTY SEVEN AND WHILE INVESTMENT OPPORTUNITIES STILL ABOUND IN AVIATION INFRASTRUCTURE OIL EXPLORATION AND OTHER SECTORS MINISTRY OF COMMERCE OFFICIAL HOANG NGOC CU SAYS THAT IN SOME FIELDS INCLUDING MOTOR VEHICLE MANUFACTURING QUOTE IT'S TOO LATE FOR THE AMERICANS TO COME IN QUOTE ON THE ROAD TO BEN TRE A PROVINCIAL CAPITAL ABOUT FIFTY FOUR MILES SOUTH OF HO CHI MINH CITY ASIAN BRAND NAMES LEAP OUT AT THE TRAVELER TIGER THE SINGAPOREAN BEER IS PROMINENTLY FOR SALE ALL OVER HONDA REPAIR SHOPS ARE EVERYWHERE NOT BECAUSE THE JAPANESE BRAND IS IN SUCH FREQUENT NEED OF SERVICING BUT BECAUSE THE MOTORCYCLES ARE SO POPULAR THAT HONDA HAS EFFECTIVELY BECOME THE VIETNAMESE WORD FOR MOTORCYCLE LAST YEAR BEN TRE PROVINCE A RICE SUGAR AND COCONUT GROWING ZONE IN THE MEKONG RIVER DELTA RECEIVED ITS FIRST FOREIGN INVESTMENTS PROVINCIAL OFFICIALS SAY A BELGIAN COMPANY INVESTED FOUR HUNDRED EIGHTY THOUSAND DOLLARS IN A FACILITY TO PROCESS COCONUT HUSKS WHILE A SOUTH KOREAN COMPANY COMMITTED TO A SEVEN MILLION DOLLAR INVESTMENT IN A TWO THOUSAND FOUR HUNDRED SEVENTY ACRE BANANA PLANTATION THE RUSH OF ASIAN AND EUROPEAN INVESTORS TOOK SOME OF THE STING OUT OF THE U. S. EMBARGO AS A RESULT THE VIETNAMESE REACTION TO THE EMBARGO'S LIFTING WAS SUBDUED BOTH IN THE MEDIA AND ON THE STREET MANY VIETNAMESE WERE HAPPY TO SEE THE EMBARGO GO BUT DIDN'T THINK ITS LIFTING WOULD HAVE MUCH REAL ECONOMIC IMPACT VIETNAM THOUGHT THAT IF THE EMBARGO WAS NOT LIFTED OTHER COUNTRIES WOULD NOT COME TO VIETNAM TO INVEST BUT MANY COUNTRIES HAVE COME SAYS TRAN CONG MAN VICE SECRETARY GENERAL OF THE VIETNAM JOURNALISTS' ASSOCIATION FOR FOREIGN INVESTORS VIETNAM IS ONE OF THE WORLD'S LAST RELATIVELY UNTAPPED OPPORTUNITIES WITH A LARGE POPULATION AND PLENTIFUL NATURAL RESOURCES INCLUDING OIL THOUGH RUN BY A COMMUNIST PARTY THAT BROOKS NO OPPOSITION THE COUNTRY IS COMMITTED TO BUILDING A MARKET ECONOMY AND HAS REDUCED THE NUMBER OF STATE ENTERPRISES TO SEVEN THOUSAND FROM TWELVE THOUSAND WHILE ANNUAL PER CAPITA PURCHASING POWER IS LOW ONLY ABOUT THREE HUNDRED FIFTY DOLLARS THE ECONOMY IS GROWING AT SEVEN PERCENT PLUS A YEAR AND INFLATION IS UNDER CONTROL THE VIETNAMESE PEOPLE SEEM HIGHLY MOTIVATED AND THEY OFFER THE FOREIGN INVESTOR A LOW MINIMUM WAGE THIRTY FIVE DOLLARS A MONTH AND A HIGH LITERACY RATE EIGHTY EIGHT PERCENT THE VIETNAMESE GOVERNMENT IS EAGER FOR FOREIGN INVESTMENT IT HOPES TO LURE AN ADDITIONAL TWENTY BILLION DOLLARS OF IT BY THE END OF THE DECADE AND OFFERS TERMS THAT ON PAPER AT LEAST ARE LIBERAL IN PRACTICE RED TAPE AND CORRUPTION PLAGUE WOULD BE FOREIGN INVESTORS BUT THE GOVERNMENT IS TRYING TO FIX THESE PROBLEMS OUT OF THE SEVEN POINT FIVE BILLION DOLLARS COMMITTED BY FOREIGN INVESTORS ABOUT TWO BILLION DOLLARS HAS BEEN SPENT SO FAR GOVERNMENT OFFICIALS SAY THEY ARE REASONABLY SATISFIED WITH THAT RATIO NGUYEN MAI VICE CHAIRMAN OF THE STATE COMMITTEE FOR COOPERATION AND INVESTMENT OR SCCI PREDICTS THAT VIETNAM WILL RECEIVE FOUR BILLION DOLLARS IN FOREIGN INVESTMENT COMMITMENTS THIS YEAR AND ONE POINT FIVE BILLION DOLLARS OF ACTUAL INVESTMENT MOST OF THE MONEY WILL COME FROM ASIAN AND EUROPEAN INVESTORS WE DON'T SEE NINETEEN NINETY FOUR AS A YEAR WHEN WE'LL RECEIVE A RUSH OF NEW FLOWS OF INVESTMENT FROM THE U. S. MR. MAI SAYS IT WILL BE A YEAR OF MORE AND MORE AMERICANS COMING TO FURTHER THEIR STUDIES OF VIETNAM'S INVESTMENT POTENTIAL THE FOREIGNERS WITH THE BIGGEST INVESTMENT COMMITMENTS IN VIETNAM AS OF LAST WEEK WERE COMPANIES FROM TAIWAN ONE POINT FIVE FOUR BILLION DOLLARS AND HONG KONG ONE POINT TWO FIVE BILLION DOLLARS TAIWAN'S GOVERNMENT FEARFUL OF BECOMING TOO ECONOMICALLY DEPENDENT ON CHINA HAS ENCOURAGED INVESTMENTS IN VIETNAM AND MANY BIG TAIWANESE COMPANIES HAVE JUMPED AT THE OPPORTUNITY ONE THE CLOSELY HELD CHING FONG GROUP IS INVESTING TWO HUNDRED TWENTY EIGHT MILLION DOLLARS IN A CEMENT FACTORY IN HAIPHONG FIFTY FIVE MILLION DOLLARS IN MOTORCYCLE MANUFACTURING FACILITIES AND FIFTEEN MILLION DOLLARS IN AN INVESTMENT AND TRUST COMPANY CHING FONG IS SAID TO BE THE LARGEST SINGLE FOREIGN INVESTOR IN VIETNAM JUST LAST WEEK TWO TAIWANESE FIRMS JOINED FRANCE'S TOTAL S. A. AND VIETNAM'S STATE OWNED PETROVIETNAM IN AGREEING TO CONDUCT A FEASIBILITY STUDY FOR VIETNAM'S FIRST OIL REFINERY THE TWO ARE STATE OWNED CHINESE PETROLEUM CORPORATION AND CHINA INVESTMENT AND DEVELOPMENT COMPANY WHOSE LARGEST SINGLE OWNER WITH A THIRTY PERCENT STAKE IS A HOLDING COMPANY OF TAIWAN'S RULING KUOMINTANG JAPANESE AND SOUTH KOREAN INVESTORS ARE ALSO MOVING INTO VIETNAM FAST ESPECIALLY IN ELECTRONICS AND MOTOR VEHICLE ASSEMBLY MR. MAI SAYS THE SCCI HAS RECEIVED SEVENTEEN PROPOSED INVESTMENTS FROM JAPAN'S MITSUI AND COMPANY ALONE AND EIGHT FROM SOUTH KOREA'S DAEWOO GROUP SOME VIETNAMESE OFFICIALS EXPECT THE LIFTING OF THE U. S. EMBARGO TO TRIGGER A FLOOD OF JAPANESE INTEREST THE OFFICIALS THINK JAPANESE COMPANIES HAVE BEEN HOLDING BACK TRYING TO AVOID ANGERING WASHINGTON BY SEEMING TO TAKE ADVANTAGE OF THE EMBARGO TO SNATCH OPPORTUNITIES FROM AMERICAN RIVALS WITH AMERICANS NOW FREE TO COMPETE MAYBE SOONER OR LATER THE JAPANESE WILL OVERTAKE THE TAIWANESE AND BECOME THE LARGEST FOREIGN INVESTORS MR. MAI SAYS WALT DISNEY HAS ALWAYS BEEN VERY PROTECTIVE OF MICKEY MOUSE FOR YEARS THE ENTERTAINMENT COMPANY HAS SUED OR THREATENED TO SUE EVEN THE SMALLEST COPYRIGHT VIOLATORS INCLUDING THREE FLORIDA DAY CARE CENTERS THAT PAINTED DISNEY CHARACTERS ON THEIR WALLS QUOTE WE PURSUE ALL KNOWN INFRINGEMENTS OF OUR RIGHTS QUOTE SAYS JOHN J. TORMEY THE THIRD A WALT DISNEY COMPANY ATTORNEY IN NEW YORK NOW NICHOLAS DEMOU OWNER OF THE LOCALLY FAMOUS MODERN DINER IN PAWTUCKET R. I. IS GIVING DISNEY A TASTE OF ITS OWN MEDICINE HE HAS SUED DISNEY OVER A MICKEY MOUSE SWEATSHIRT THAT SHOWS HIS DINER IN THE BACKGROUND LAST SUMMER MR. DEMOU SAYS HE SAW A CUSTOMER WEARING ONE OF THE SHIRTS HIS FIRST REACTION HE SAYS WAS DISBELIEF I'M A LITTLE TINY GUY IN THE SMALLEST STATE WITH A FIFTY SEAT RESTAURANT HE SAYS IF IT WAS ME AND I WAS SELLING THOSE SHIRTS YOU KNOW THEY WOULD HAVE SHUT ME DOWN DISNEY DECLINES TO COMMENT EAST SIDE MODERN DINER INCORPORATED'S SUIT AGAINST DISNEY IN A RHODE ISLAND STATE COURT SEEKS AN ACCOUNTING OF ALL ILL GOTTEN GAINS AND UNSPECIFIED COMPENSATORY AND PUNITIVE DAMAGES THE SUIT ALSO NAMES THE SHIRT'S MANUFACTURER AND A DISCOUNT RETAILER WHERE MR. DEMOU BOUGHT ONE OF THE SHIRTS FOR NINETEEN DOLLARS AND NINETY FIVE CENTS THE MODERN ISN'T JUST ANY DINER AN ART DECO STERLING STREAMLINER BRAND DINER BUILT AROUND NINETEEN FORTY IT WAS THE FIRST DINER ACCEPTED BY THE NATIONAL REGISTER OF HISTORIC PLACES MR. DEMOU SAYS AFTER HIS FAMILY BOUGHT THE ABANDONED DINER EIGHT YEARS AGO AND MOVED IT TO ITS CURRENT ROADSIDE LOCATION THEY WORKED WITH PRESERVATIONISTS ON THE RESTORATION THE MODERN HAS BEEN FEATURED IN A NUMBER OF BOOKS ON DINERS AND ROAD FOOD MICHAEL FELDHUHN THE MODERN'S LAWYER SPECULATES THAT THE SWEATSHIRT PICTURE WHICH CLEARLY DISPLAYS THE MODERN DINER SIGN ATOP THE RESTAURANT MIGHT HAVE COME FROM ONE OF THEM DURING THE WEEK THE MODERN SERVES CLASSIC DINER FOOD MEATLOAF BEEF STEW CHICKEN CROQUETTES WEEKENDS MR. DEMOU A GRADUATE OF THE NEARBY JOHNSON AND WALES CULINARY SCHOOL SAYS HE ATTRACTS THE ARTSY CROWD WITH DELICACIES LIKE BAKED EGGS FLORENTINE AND PEAR AND ALMOND PANCAKES WITH HOT FIGS MR. DEMOU SAYS HE'S SENSITIVE TO THE NEED TO PROTECT TRADEMARKS AFTER ALL HE SELLS HIS OWN MODERN DINER T. SHIRTS WITHOUT MICKEY METALL MINING CORPORATION SAID IT WITHDREW ITS BID FOR ALL THE COMMON SHARES OF INTERNATIONAL MUSTO EXPLORATIONS LIMITED MUSTO A VANCOUVER BRITISH COLUMBIA MINERAL EXPLORATION COMPANY THAT OWNS A LARGE COPPER AND GOLD DEPOSIT IN ARGENTINA SAID LAST WEEK THAT IT ENTERED INTO A DEFINITIVE AGREEMENT TO SELL A FIFTY PERCENT INTEREST IN THE PROJECT TO M. I. M. HOLDINGS LIMITED OF AUSTRALIA METALL A TORONTO MINING CONCERN SAID ITS BID WAS SUBJECT TO MUSTO NOT SELLING A SIGNIFICANT STAKE IN THE PROJECT Q. V. C. NETWORK INCORPORATED BEHIND IN THE BIDDING FOR PARAMOUNT COMMUNICATIONS INCORPORATED IS NAVIGATING A LEGAL AND REGULATORY MINEFIELD AS IT ATTEMPTS TO REGAIN MOMENTUM IN THE TAKEOVER CONTEST WITH A MAJORITY OF SHORT TERM STOCK TRADERS FAVORING A RIVAL BID FOR ENTERTAINMENT AND PUBLISHING GIANT PARAMOUNT BY VIACOM INCORPORATED ONE IMMEDIATE GOAL FOR Q. V. C. CHAIRMAN BARRY DILLER IS TO SEE TO IT THAT VIACOM A CABLE TELEVISION PROGRAMMER DOESN'T GAIN THE FIFTY POINT ONE PERCENT OF PARAMOUNT STOCK NEEDED TO WIN WHEN BOTH COMPANIES' TAKEOVER BIDS EXPIRE MONDAY BUT MR. DILLER IS LABORING UNDER A HANDICAP BECAUSE THE AUCTION GROUND RULES AGREED TO BY BOTH VIACOM AND HOME SHOPPING COMPANY Q. V. C. BAR BOTH BIDDERS FROM CHANGING WHAT WERE SUPPOSEDLY THEIR LAST BEST OFFERS WHICH THEY SUBMITTED FEBRUARY FIRST BOTH BIDS ARE VALUED AT MORE THAN TEN BILLION DOLLARS EACH SO INSTEAD MR. DILLER IS PURSUING HIS GOAL BY HINTING DURING MEETINGS WITH ANALYSTS AND TRADERS OF POSSIBLE FUTURE EFFORTS TO SHORE UP HIS BID WHICH CONSISTS OF BOTH CASH AND Q. V. C. STOCK Q. V. C.'S HINTS HAVE ALREADY RAISED QUESTIONS FROM THE SECURITIES AND EXCHANGE COMMISSION YESTERDAY S. E. C. STAFF MEMBERS CALLED BOTH Q. V. C. AND SOME ANALYSTS WHO ATTENDED THE MEETINGS TO ASK FOR INFORMATION ON WHAT WAS SAID ACCORDING TO STOCK TRADERS THE S. E. C. DECLINED TO COMMENT AT THE MEETINGS TUESDAY MR. DILLER AND EXECUTIVES OF COMCAST CORPORATION A Q. V. C. INVESTOR BROACHED THE POSSIBILITY THAT BELLSOUTH CORPORATION WHICH HAS ALREADY AGREED TO INVEST TWO BILLION DOLLARS IN Q. V. C. MIGHT JOIN WITH OTHER Q. V. C. BACKERS IN PROMISING TO BUY Q. V. C. STOCK AT SOME POINT IN THE FUTURE DEPENDING ON THE SPECIFICS SUCH AN ANNOUNCEMENT COULD STRENGTHEN THE Q. V. C. BID BY GIVING PARAMOUNT STOCKHOLDERS SOME ASSURANCE THAT Q. V. C. STOCK WOULDN'T FALL SHARPLY AFTER ANY Q. V. C. ACQUISITION OF PARAMOUNT PETER SIRIS AN ANALYST FROM U. B. S. SECURITIES INCORPORATED WHO ATTENDED ONE OF THE TUESDAY MEETINGS ISSUED A REPORT TO CLIENTS YESTERDAY THAT SAID QUOTE WE BELIEVE THAT Q. V. C. AND ITS PARTNERS INTEND TO STRENGTHEN ITS PARAMOUNT BID BY DEVISING A MECHANISM THAT WOULD LET THE PARTNERS SUPPORT THE PRICE OF Q. V. C.'S STOCK QUOTE SOME ANALYSTS SAID THE MEETING RAISED REGULATORY ISSUES ABOUT STATEMENTS BY MR. DILLER THAT SUCH A PLAN IS UNDER CONSIDERATION HOW THOSE STATEMENTS WERE DISSEMINATED AND WHETHER THEY CONSTITUTED A CHANGE IN THE Q. V. C. OFFER THAT WOULD HAVE TO BE DISCLOSED IN PUBLIC FILINGS ONE PERSON CLOSE TO Q. V. C. ACKNOWLEDGED RECEIVING A CALL FROM THE S. E. C. BUT CHARACTERIZED IT AS NO BIG DEAL ONE ANALYST ALSO ACKNOWLEDGED RECEIVING SUCH A CALL BUT DECLINED TO COMMENT MR. DILLER SAID WE WERE OBVIOUSLY VERY CAREFUL ABOUT WHAT WE DID SAY WE RESPONDED TO A GOOD MANY QUESTIONS AT THE MEETINGS WITH THAT CARE IN MIND SOME LAWYERS FOLLOWING THE PARAMOUNT BATTLE BELIEVE THAT ANY EVENTUAL ANNOUNCEMENT EVEN IF MADE BY BELLSOUTH OR OTHERS INSTEAD OF BY Q. V. C. MIGHT BY ITSELF CONSTITUTE A CHANGE IN THE Q. V. C. BID SINCE IT WOULD AFFECT THE PERCEIVED VALUE OF THE Q. V. C. STOCK IN Q. V. C.'S OFFER IF SUCH A MOVE CONTRIBUTED TO VIACOM NOT RECEIVING FIFTY POINT ONE PERCENT OF PARAMOUNT STOCK VIACOM COULD WELL BRING A LAWSUIT CHARGING THAT Q. V. C. BROKE THE BIDDING RULES DELAYING THE ALREADY PROTRACTED BATTLE BUT PARAMOUNT ADVISERS HAVE HINTED THEY MAY ACT TO BRING THE CURTAIN DOWN QUICKLY IF VIACOM FALLS SHORT OF FIFTY POINT ONE PERCENT BUT APPEARS TO BE THE CLEAR WINNER ANYWAY ANOTHER LEGAL QUESTION IS WHETHER BELLSOUTH COULD UNDER SECURITIES UNDERWRITING LAWS MAKE AN ANNOUNCEMENT THAT IT PLANNED TO PURCHASE Q. V. C. STOCK ONE LAWYER NOTED THAT THERE ARE TIGHT RULES GOVERNING THE SIMULTANEOUS OFFERING AND BUYING OF SECURITIES DESIGNED TO GUARD AGAINST SECURITIES BEING SOLD AT ARTIFICIALLY INFLATED PRICES SOME TAKEOVER TRADERS BELIEVE MR. DILLER MAY BE TRYING TO ACCOMPLISH HIS GOAL OF DENYING VIACOM FIFTY POINT ONE PERCENT OF PARAMOUNT MERELY BY HOLDING OUT THE HOPE THAT A HIGHER BID MAY BE POSSIBLE AFTER FEBRUARY FOURTEENTH WHEN BOTH Q. V. C. AND VIACOM WOULD BOTH BE FREE TO CHANGE THEIR BIDS IF NEITHER SIDE RECEIVED FIFTY POINT ONE PERCENT OF PARAMOUNT'S STOCK SOME TRADERS WOULD LIKE TO SEE WHETHER Q. V. C. CAN COME UP WITH A HIGHER VALUE BEFORE THE CONTEST ENDS EVEN THOUGH THE BIDS HAVE GENERALLY DISAPPOINTED TRADERS SINCE EARLY DECEMBER WHEN A DELAWARE COURT ORDERED PARAMOUNT TO GIVE EQUAL CONSIDERATION TO THE BIDS FROM VIACOM AND Q. V. C. SINCE NOVEMBER PARAMOUNT STOCK HAS DECLINED BY MORE THAN EIGHT PERCENT BEFORE REBOUNDING THIS WEEK ON HOPES OF A NEW Q. V. C. BID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY PARAMOUNT SHARES ROSE SIXTY TWO POINT FIVE CENTS TO SEVENTY SEVEN POINT THREE SEVEN FIVE DOLLARS Q. V. C. STOCK WAS UNCHANGED AT FORTY FIVE POINT ONE TWO FIVE DOLLARS ON THE NASDAQ STOCK MARKET WHILE VIACOM CLASS B. SHARES JUMPED ONE POINT THREE SEVEN FIVE DOLLARS TO THIRTY THREE DOLLARS AND TWENTY FIVE CENTS ON THE AMERICAN STOCK EXCHANGE ANOTHER FACTOR THAT COULD HURT VIACOM'S CHANCES OF RECEIVING FIFTY POINT ONE PERCENT OF PARAMOUNT'S STOCK IS THAT ABOUT SEVENTEEN MILLION PARAMOUNT SHARES ARE SUBJECT TO STOCK OPTION SALES WHICH MAY RESTRICT SOME OF THEM FROM BEING TENDERED OPTIONS ARE CONTRACTS TO BUY OR SELL AN UNDERLYING SECURITY AT A SPECIFIED PRICE ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION REACHED AGREEMENT ON SOME NETTLESOME SECURITY ISSUES THAT HAVE STALLED THEIR ACCORD FOR PALESTINIAN SELF RULE IN THE GAZA STRIP AND JERICHO BUT MAY NEED SEVERAL MORE WEEKS TO WORK OUT OTHER DETAILS CONCLUDING A MEETING IN CAIRO EGYPT ISRAELI FOREIGN MINISTER SHIMON PERES SAID THAT HE AND YASSER ARAFAT CHAIRMAN OF THE P. L. O. HAD SETTLED QUOTE FIVE OR SIX OF THE MOST COMPLICATED ISSUES QUOTE INVOLVED IN TURNING OVER CONTROL OF THE ISRAELI OCCUPIED GAZA STRIP AND WEST BANK TOWN OF JERICHO ACCORDING TO WIRE SERVICE REPORTS BUT HE ADDED THAT WE DIDN'T COMPLETE OUR WORK AN ISRAELI OFFICIAL IN WASHINGTON SAID THE TWO SIDES STILL NEED TO RESOLVE ECONOMIC ISSUES INCLUDING QUESTIONS ABOUT CURRENCIES AND FOREIGN INVESTMENT RULES AS WELL AS ISSUES CONCERNING THE TRANSFER OF AUTHORITY SUCH AS WHO WILL PROVIDE VARIOUS MEDICAL SERVICES FOR PEOPLE IN THE TERRITORIES I'M SURE THAT RESOLVING THE SECURITY ISSUES WILL FACILITATE MOVING FORWARD BUT THERE'S STILL A LOT OF WORK TO BE DONE AND I'M AFRAID THAT IT WON'T COME QUICKLY THE OFFICIAL SAID ESTIMATING THAT THE PROCESS COULD TAKE SEVERAL MORE WEEKS THE ISRAELIS AND PALESTINIANS ARE ALREADY NEARLY TWO MONTHS BEHIND THE SCHEDULE THAT WAS AGREED TO WHEN THEY SIGNED THEIR HISTORIC ACCORD ON THE WHITE HOUSE LAWN SEPTEMBER THIRTEENTH THE EUPHORIA OF THE HANDSHAKE THAT DAY BETWEEN MR. ARAFAT AND ISRAELI PRIME MINISTER YITZHAK RABIN SOON WAS REPLACED BY A WAVE OF VIOLENCE IN THE OCCUPIED TERRITORIES AS THE WEEKS DRAGGED ON BEYOND THE DECEMBER THIRTEENTH DATE WHEN IMPLEMENTATION OF THE AGREEMENT WAS SUPPOSED TO BEGIN SUPPORT FOR THE PLAN DROPPED PRECIPITOUSLY AMONG BOTH ISRAELIS AND PALESTINIANS U. S. OFFICIALS ARE HOPEFUL THAT YESTERDAY'S AGREEMENT ON SECURITY ISSUES WILL BEGIN TO BRAKE THE PESSIMISM AND SPUR THE PEACE PROCESS PRESIDENT CLINTON WHO LEARNED THAT MESSRS ARAFAT AND PERES HAD SIGNED THE PARTIAL AGREEMENT IN CAIRO AS A GROUP OF JEWISH LEADERS WERE BEING HOSTED IN THE WHITE HOUSE SAID ANOTHER BIG MILESTONE HAS BEEN ACHIEVED TODAY THE DISAGREEMENTS OVER SECURITY ISSUES STEMMED FROM THE TENSION BETWEEN THE PALESTINIANS' EFFORTS TO STRETCH THE DEFINITION OF THE LIMITED AUTONOMY BEING GRANTED BY ISRAEL AND THE ISRAELIS' DETERMINATION TO CONFINE THAT EFFORT SPECIFICALLY THE TWO SIDES WERE QUARRELING OVER CONTROL OF THE CROSSINGS FROM GAZA AND JERICHO TO EGYPT AND JORDAN SECURITY FOR JEWISH SETTLERS WHO REMAIN IN GAZA AND HOW MUCH LAND AROUND JERICHO WOULD BE INCLUDED IN PALESTINIAN CONTROL IN RESOLVING ONE OF THESE DISPUTES ACCORDING TO U. S. OFFICIALS IT WAS AGREED THAT PALESTINIANS CROSSING INTO GAZA OR JERICHO WOULD FIRST GO THROUGH A PALESTINIAN SCREENING PROCESS AND THEN TO GIVE THE ISRAELIS AN INVISIBLE PRESENCE WOULD PASS BY A ONE WAY WINDOW FROM WHICH ISRAELI OFFICIALS WOULD OBSERVE THEM THOSE PALESTINIANS DEEMED TO BE QUOTE SUSPICIOUS QUOTE BY THE ISRAELIS WOULD BE SUBJECT TO ISRAELI INTERROGATION AND WOULD HAVE ACCESS TO A PALESTINIAN LAWYER BEFORE BEING TURNED BACK WHEN THE ECONOMIC AND CIVIL ISSUES ARE WORKED OUT IT WILL TRIGGER THE BEGINNING OF THE ISRAEL WITHDRAWAL FROM GAZA AND JERICHO THAT SHOULD HAVE BEGUN DECEMBER THIRTEENTH THEN THE CLOCK WILL BEGIN TICKING ON A FIVE YEAR INTERIM PERIOD THAT IS SUPPOSED TO LEAD TO A FINAL RESOLUTION OF THE ISRAELI PALESTINIAN CONFLICT NO LATER THAN THE END OF THE SECOND YEAR NEGOTIATIONS WILL BEGIN ON THE PERMANENT STATUS OF THE LANDS THAT ISRAEL OCCUPIED AFTER THE NINETEEN SIXTY SEVEN SIX DAY WAR THOSE TALKS ARE EXPECTED TO BE THORNY AND PROTRACTED THE TREASURY SAID IT SOLD ONE POINT TWO TWO BILLION DOLLARS OF SERIES EE SAVINGS BONDS IN JANUARY DOWN FIFTY TWO POINT ONE PERCENT FROM A YEAR EARLIER JANUARY SALES WERE UP TWENTY FOUR POINT TWO PERCENT FROM DECEMBER THE VALUE OF SERIES EE SAVINGS BONDS HELD BY AMERICANS AT THE END OF JANUARY REACHED ONE HUNDRED SIXTY ONE POINT NINE EIGHT BILLION DOLLARS UP EIGHT POINT SIX PERCENT FROM ONE HUNDRED FORTY NINE POINT TWO TWO BILLION DOLLARS A YEAR EARLIER SAVINGS BONDS HELD FIVE YEARS OR MORE CURRENTLY PAY A MARKET BASED RATE OF FOUR POINT TWO FIVE PERCENT BONDS REDEEMED DURING THE FIRST FIVE YEARS EARN THE GUARANTEED MINIMUM RATE OF FOUR PERCENT U. S. HEALTHCARE INCORPORATED ONE OF THE NATION'S LARGEST HEALTH MAINTENANCE ORGANIZATIONS IS SEEKING PARTNERSHIPS WITH AS MANY AS TWO HUNDRED HOSPITALS IN ITS SERVICE AREAS THE NEGOTIATIONS REPRESENT A MAJOR SWITCH IN STRATEGY FOR U. S. HEALTHCARE TRADITIONALLY THE BLUE BELL PENNSYLVANIA BASED H. M. O. HAS AVOIDED DIRECT INVOLVEMENT IN HEALTH CARE DELIVERY INSTEAD IT HAS CONTRACTED WITH VAST NUMBERS OF INDEPENDENT DOCTORS AND HOSPITALS IN ITS TERRITORY WHICH STRETCHES FROM PENNSYLVANIA TO NEW HAMPSHIRE LIKE MANY H. M. O.S U. S. HEALTHCARE HAS BEEN KNOWN AS A TOUGH BARGAINER PRESSING HARD FOR DISCOUNT PRICES BUT AN EXECUTIVE CLOSE TO THE TALKS SAID U. S. HEALTHCARE QUOTE WANTS TO BE MORE COOPERATIVE QUOTE IN ITS DEALINGS WITH HOSPITALS HE SAID THE H. M. O. DOESN'T WANT TO BUY HOSPITALS OUTRIGHT BUT HAS PROPOSED GIVING STOCK OPTIONS TO HOSPITALS OR SETTING UP PROFIT SHARING TRUSTS THAT WOULD BE JOINTLY OWNED BY U. S. HEALTHCARE AND INDIVIDUAL HOSPITALS A U. S. HEALTHCARE SPOKESWOMAN CONFIRMED THAT DISCUSSIONS ARE UNDER WAY BUT DECLINED TO COMMENT FURTHER IF THE TALKS SUCCEED THEY COULD PRODUCE A HEALTH CARE JUGGERNAUT ON THE EAST COAST ALREADY U. S. HEALTHCARE PROVIDES COVERAGE FOR MORE THAN ONE POINT FIVE MILLION PEOPLE FOR NINETEEN NINETY THREE THE COMPANY'S NET INCOME SOARED FIFTY PERCENT TO TWO HUNDRED NINETY NINE POINT SEVEN MILLION DOLLARS ON REVENUE OF TWO POINT SIX FIVE BILLION DOLLARS IT'S UNCLEAR THOUGH WHETHER HOSPITALS WILL WANT TO EMBRACE U. S. HEALTHCARE'S OVERALL PACKAGE ALONG WITH ITS NEW INCENTIVES THE HEALTH PLAN ALSO IS LIKELY TO PUSH FOR STRICTER CONTRACTS THAT WILL ALIGN HOSPITALS MORE CLOSELY WITH THE H. M. O.'S OWN PRIORITIES IN SOME CASES HOSPITALS COULD BE REQUIRED TO SHARE THE FINANCIAL RISK OF CARING FOR A LARGE POOL OF PATIENTS RATHER THAN BEING REIMBURSED AFTER THE FACT FOR EACH TREATMENT SUCH RISK SHARING SYSTEMS KNOWN AS CAPITATION ARE FAVORED BY H. M. O.S BUT EVOKE MIXED FEELINGS AT BEST AMONG HOSPITAL EXECUTIVES ANOTHER POTENTIAL STICKING POINT INVOLVES HOW MUCH CONTROL A HOSPITAL'S MANAGEMENT TEAM WOULD HAVE TO SHARE WITH AN OUTSIDE PARTNER SEVERAL HOSPITAL EXECUTIVES WHO HAVE BEEN APPROACHED BY U. S. HEALTHCARE SAID THEY ARE WEIGHING ITS PROPOSALS AGAINST A DIFFERENT WAY OF BOOSTING THEIR MARKET CLOUT FORMING ALLIANCES WITH LOCAL HOSPITALS DOCTORS AND OUTPATIENT CENTERS ELLIOT SUSSMAN CHIEF EXECUTIVE OFFICER OF LEHIGH VALLEY MEDICAL CENTER IN ALLENTOWN PENNSYLVANIA SAID HE HAS BEEN HOLDING TALKS WITH U. S. HEALTHCARE BUT HASN'T DECIDED WHICH OPTIONS TO PURSUE THERE ARE ALL KINDS OF CONVERSATIONS GOING ON AMONG PROVIDERS NOW DOCTOR SUSSMAN SAID HE TERMED U. S. HEALTHCARE'S PROPOSALS ONE POSSIBLE MODEL BUT SAID HE IS LOOKING AT OTHER CHOICES TOO THE HEAD OF PRINCETON MEDICAL CENTER IN NEW JERSEY DENNIS DOODY SAID HE HAS BEGUN TALKS WITH U. S. HEALTHCARE AND IS INTERESTED IN FINDING OUT MORE BUT MR. DOODY QUESTIONED WHETHER THE PROFIT SHARING ARRANGEMENTS ALONE WOULD BE ENOUGH TO MAKE A COMMUNITY HOSPITAL ALIGN ITS DESTINY WITH U. S. HEALTHCARE A MORE UPBEAT VIEW CAME FROM NANCY BRUNTON EXECUTIVE DIRECTOR OF MANAGED CARE AT OVERLOOK HOSPITAL IN SUMMIT N. J. QUOTE GIVEN THAT U. S. HEALTHCARE HAS BEEN A LEADER IN THE INDUSTRY ANYTHING NEW THAT THEY TRY HAS A GOOD CHANCE OF SUCCESS QUOTE SHE SAID MS. BRUNTON SPECULATED THAT IF THE PARTNERSHIP CONCEPT CATCHES ON OTHER EAST COAST H. M. O.S ARE LIKELY TO COPY IT SOME HOSPITAL EXECUTIVES THINK U. S. HEALTHCARE MAY BE WOOING THEM AS A DEFENSIVE STRATEGY THE HOSPITAL MARKET IS CHANGING RAPIDLY IN U. S. HEALTHCARE'S MAIN MARKETS CONCENTRATING POWER IN THE HANDS OF POTENTIAL RIVALS TO THE BIG H. M. O. IN PHILADELPHIA A RIVAL INSURER INDEPENDENCE BLUE CROSS RECENTLY NEGOTIATED TO BUY SEVEN HOSPITALS MEANWHILE VARIOUS NEW JERSEY HOSPITALS ARE EXPLORING WAYS TO BAND TOGETHER THOSE ALLIANCES COULD UNDERCUT U. S. HEALTHCARE'S ABILITY TO NEGOTIATE FAVORABLE CONTRACTS WITH INDIVIDUAL HOSPITALS U. S. HEALTHCARE WOULDN'T SAY WHICH HOSPITALS IT IS WOOING THE H. M. O. IS REFERRING TO ITS PROJECT AS THE COMMUNITY HOSPITAL NETWORK SUGGESTING THAT IT IS TARGETING MIDSIZE HOSPITALS IN SUBURBAN LOCATIONS RATHER THAN GIANT URBAN TEACHING HOSPITALS OR SMALL RURAL FACILITIES AS PART OF ITS PACKAGE U. S. HEALTHCARE IS CONSIDERING WAYS THAT HOSPITALS COULD GET OPTIONS ON THE H. M. O.'S STOCK IF THEY MEET CERTAIN PERFORMANCE TARGETS BECAUSE MOST HOSPITALS HAVE NONPROFIT STATUS THAT MAY BE HARD TO IMPLEMENT IN SOME STATES BUT U. S. HEALTHCARE EVIDENTLY SEES STOCK OPTIONS AS A POTENT LURE OVER THE PAST THREE YEARS U. S. HEALTHCARE'S STOCK HAS TRIPLED IN PRICE IN NASDAQ STOCK MARKET TRADING YESTERDAY THE STOCK FELL ONE DOLLAR AND FIFTY CENTS TO FIFTY EIGHT POINT ONE TWO FIVE DOLLARS SONY PICTURES ENTERTAINMENT SAID IT NAMED BENJAMIN S. FEINGOLD PRESIDENT OF ITS COLUMBIA TRISTAR HOME VIDEO UNIT SUCCEEDING W. PATRICK CAMPBELL WHO RECENTLY LEFT TO TAKE A SENIOR MANAGEMENT POSITION WITH AMERITECH MR. FEINGOLD HAD BEEN SENIOR VICE PRESIDENT OF CORPORATE DEVELOPMENT AT SONY PICTURES A UNIT OF THIS JAPANESE ELECTRONICS CONCERN THE STATE OF OKLAHOMA AND THE STATE'S DEPARTMENT OF SECURITIES EACH FILED A CIVIL SUIT IN OKLAHOMA COUNTY DISTRICT COURT AGAINST THREE BROKERAGE HOUSES SEEKING SIX POINT SEVEN MILLION DOLLARS IN ALLEGED EXCESSIVE PROFIT FROM BOND TRADING FOR THE STATE THE OKLAHOMA ATTORNEY GENERAL'S OFFICE SAID THE CHARGES STEM FROM A SERIES OF TRANSACTIONS INVOLVING THE PURCHASE AND SALE OF U. S. GOVERNMENT SECURITIES BY THE OKLAHOMA STATE TREASURER'S OFFICE THE SUIT NAMED PLANNERS INDEPENDENT MANAGEMENT INCORPORATED SAN DIEGO MABON SECURITIES CORPORATION NEW YORK AND ADLER COLEMAN CLEARING CORPORATION NEW YORK ALONG WITH THREE INDIVIDUAL AGENTS OF PLANNERS INDEPENDENT MANAGEMENT A SPOKESMAN FOR THE OKLAHOMA ATTORNEY GENERAL'S OFFICE SAID THE PLAINTIFFS IN THE TWO CASES ARE SEEKING TO CONSOLIDATE THEIR ACTIONS A RECENTLY COMPLETED STATE AUDIT FOUND ALLEGEDLY UNETHICAL TRADING PRACTICES AND CLAIMED THAT SECURITIES FIRMS HAD OVERCHARGED THE TREASURER'S OFFICE BY MORE THAN SIX MILLION DOLLARS AMONG THE ALLEGATIONS MADE BY THE STATE AND SECURITIES REGULATORS BUYING AND SELLING SECURITIES AT UNFAIR PRICES BY APPLYING EXCESSIVE MARKUPS AND MARKDOWNS DEPRIVING THE STATE OF THE BEST AVAILABLE MARKET PRICE AND ALLOWING OR RECEIVING PAYMENTS WHEN NO SERVICES WERE PERFORMED THE BATTLE TO DEFINE DEVAL PATRICK BEGAN EVEN BEFORE HE WAS OFFICIALLY NOMINATED TO BE PRESIDENT CLINTON'S ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS THE DAY BEFORE THE NOMINATION CLINT BOLICK THE CONSERVATIVE LEGAL GADFLY WHO LED THE SUCCESSFUL ASSAULT ON LANI GUINIER MR. CLINTON'S FIRST NOMINEE FOR THE JOB SENT NEWS ORGANIZATIONS A NEWS RELEASE LABELING MR. PATRICK A QUOTE STEALTH GUINIER QUOTE TWO DAYS LATER MR. BOLICK FOLLOWED WITH AN OP ED PIECE IN THE WALL STREET JOURNAL WHOSE HEADLINE CALLED MR. PATRICK A QUOTA CLONE A JOURNAL HEADLINE ON AN EARLIER BOLICK BROADSIDE AGAINST MS. GUINIER HAD DUBBED HER A QUOTA QUEEN BUT THIS TIME THE ADMINISTRATION LEARNING FROM PAST MISTAKES MOVED JUST AS SWIFTLY TO PREVENT THE NOMINEE FROM BEING PLACED IN A BOX DESIGNED BY ADVERSARIES OFFICIALS INTRODUCED THE THIRTY SEVEN YEAR OLD BOSTON LAWYER TO REPORTERS PRIOR TO HIS FIRST MEETING WITH THE PRESIDENT LATER THEY FETED HIM WITH A RECEPTION ATTENDED BY CIVIL RIGHTS ACTIVISTS AND MEMBERS OF CONGRESS AND WITHIN AN HOUR OF HIS WHITE HOUSE NOMINATION CEREMONIES THEY TOOK HIM TO CAPITOL HILL TO MEET DEMOCRATIC AND REPUBLICAN LEGISLATORS SENATOR EDWARD KENNEDY D. MASSACHUSETTS INTRODUCED HIM TO LAWMAKERS AS THEY CAME OFF THE SENATE FLOOR MR. CLINTON HIMSELF SIGNALED THE ADMINISTRATION'S NEW MORE AGGRESSIVE APPROACH THE NOMINEE'S CRITICS NEVER BELIEVED IN THE CIVIL RIGHTS LAWS THEY NEVER BELIEVED IN EQUAL OPPORTUNITY THEY NEVER LIFTED A FINGER TO GIVE ANYBODY OF A MINORITY RACE A CHANCE IN THIS COUNTRY HE SAID IF THEY ATTACK HIS RECORD IT MEANS JUST EXACTLY WHAT WE'VE ALL SUSPECTED ALL ALONG THEY DON'T GIVE A RIFF ABOUT CIVIL RIGHTS WELL THOSE OF US WHO CARE ABOUT CIVIL RIGHTS WERE ELECTED BY THE AMERICAN PEOPLE TO TAKE CARE OF THEM AND THAT'S WHAT WE INTENDED TO DO ALL THIS HAS PAID OFF FOR THE WHITE HOUSE SO FAR MR. PATRICK HASN'T ENCOUNTERED SUBSTANTIAL OPPOSITION IN CONGRESS QUOTE NOBODY HAS GIVEN ANY INDICATION OF PICKING UP THE CUDGEL ON THIS PARTICULAR INDIVIDUAL QUOTE SAYS ONE G. O. P. SENATE STAFFER OF COURSE MR. PATRICK'S NOMINATION HAS BEEN HELPED BY THE FACT THAT WHILE HE HAS PARTICIPATED IN SOME IMPORTANT CIVIL RIGHTS CASES HE LACKS AN EXTENSIVE PAPER TRAIL NUMEROUS PUBLISHED ARTICLES THAT OPPONENTS CAN CITE TO ATTACK HIS IDEAS THE ADMINISTRATION PRESENTED HIM AS A MODERN DAY SUCCESS STORY A YOUNG JAZZ LOVER AND A GOOD COOK WHO CAME FROM A BROKEN HOME AND SURMOUNTED WELFARE POVERTY AND TURMOIL GROWING UP ON CHICAGO'S SOUTH SIDE HE ONCE DESCRIBED HIS CHILDHOOD AS A LIFE OF WANT OF DEEPLY SEGREGATED AND ILL EQUIPPED SCHOOLS OF GANG VIOLENCE AND LIMITED HOPE FROM THERE HE WENT TO THE EXCLUSIVE MILTON ACADEMY IN MASSACHUSETTS AND THEN TO HARVARD UNIVERSITY WHERE HE PLAYED SQUASH AND EARNED AN UNDERGRADUATE DEGREE IN LITERATURE AND A LAW DEGREE SUPPORTERS PROMOTE MR. PATRICK AS WELL WITHIN THE MAINSTREAM OF CIVIL RIGHTS THINKING A MEMBER OF A BLUE CHIP LAW FIRM AND SOMEONE EVEN REPUBLICANS CAN SUPPORT IN A JUNE COMMENCEMENT ADDRESS AT MILTON HE LAMENTED THE LACK OF A NATIONAL CONSENSUS ON CIVIL RIGHTS THE NATION IS TRAPPED IN A PATTERN OF NEGLECT AND RETRENCHMENT HE SAID BECAUSE OF A FAILURE OF WILL A LACK OF LEADERSHIP AND FEAR INDEED WE SEEM TO HAVE ABANDONED ANY SENSE OF THE POSSIBILITY OF NATIONAL COMMUNITY MR. BOLICK DECRIES AN ARGUMENT MR. PATRICK MADE AGAINST THE DEATH PENALTY THE NOMINEE HAD ARGUED UNSUCCESSFULLY BEFORE THE SUPREME COURT THAT THE DEATH PENALTY IS UNCONSTITUTIONAL BECAUSE IT IS USED DISPROPORTIONATELY AGAINST BLACK MEN MR. BOLICK SAYS THE CASE INDICATES MR. PATRICK BELIEVES THAT OTHERWISE FAIR PROCEDURES ARE RACIST IF THEY PRODUCE UNEQUAL OUTCOMES EQUALITY OF OPPORTUNITY NOT EQUALITY OF RESULTS SHOULD BE THE CIVIL RIGHTS TOUCHSTONE MR. BOLICK ARGUES THE CONSERVATIVE CRITIC ALSO MAKES MUCH OF MR. PATRICK'S ASSOCIATION WITH THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE LEGAL DEFENSE AND EDUCATIONAL FUND THE NOMINEE WORKED FOR THAT GROUP AFTER GRADUATING FROM LAW SCHOOL AND CURRENTLY SERVES ON ITS NATIONAL BOARD AND NEW ENGLAND STEERING COMMITTEE MR. BOLICK CONTENDS THAT THE ORGANIZATION RELENTLESSLY PUSHES RACIAL QUOTAS BUSING AND LAWS GUARANTEEING MINORITY COMPANIES GOVERNMENT WORK BUT FEW HAVE BOUGHT THE NOTION THAT THE ORGANIZATION AND MR. PATRICK ARE RADICAL CIVIL RIGHTS OUTSIDERS SUPPORTERS POINT TO THE NUMBER OF FEDERAL AND STATE JUDGES LAW DEANS AND UNIVERSITY PRESIDENTS WHO CAME FROM LEGAL DEFENSE FUND RANKS AND NOTE THAT SOLICITOR GENERAL DREW DAYS WORKED FOR THE GROUP INDEED THIS TIME IT'S CIVIL RIGHTS LEADERS AND MR. CLINTON WHO ARE ATTEMPTING TO CAST MR. BOLICK AS OUTSIDE THE MAINSTREAM ON PUBLIC TELEVISION'S MACNEIL LEHRER NEWSHOUR LEGAL DEFENSE FUND EXECUTIVE DIRECTOR ELAINE JONES GOT MR. BOLICK TO ADMIT THAT EVEN THE LATE SUPREME COURT JUSTICE THURGOOD MARSHALL PROBABLY IN MS. JONES' WORDS COULD NOT PASS THE CLINT BOLICK TEST A COLOMBIAN COFFEE EXPORTER WAS CHARGED WITH DEFRAUDING SEVERAL BANKS OF SOME NINETY SEVEN MILLION DOLLARS BY SUBMITTING ALLEGEDLY FALSE DOCUMENTS SEEKING PAYMENT FOR THE EXPORT OF LARGE AMOUNTS OF NONEXISTENT COFFEE RUBEN DARIO ECHEVERRI FORTY THREE YEARS OLD WHOSE FAMILY CONTROLLED A COLOMBIAN COMPANY CALLED GONCHECOL COMPANY WAS ARRESTED IN MIAMI AND CHARGED WITH ONE COUNT OF BANK FRAUD FEDERAL PROSECUTORS ALLEGE MR. ECHEVERRI BETWEEN DECEMBER NINETEEN EIGHTY FIVE AND AUGUST NINETEEN EIGHTY SIX SUBMITTED FICTITIOUS BILLS OF LADING INDICATING THE COFFEE HAD BEEN LOADED ONTO TRUCKS TO COLLECT ON A SERIES OF LETTERS OF CREDIT ACCORDING TO A COMPLAINT FILED IN A FEDERAL COURT IN NEW YORK MR. ECHEVERRI HASN'T RETAINED AN ATTORNEY YET AMONG THE FINANCIAL INSTITUTIONS ALLEGEDLY DEFRAUDED ARE CHEMICAL BANKING CORPORATION'S CHEMICAL BANK THIRTY FIVE MILLION DOLLARS BANQUE PARIBAS TWENTY FIVE MILLION DOLLARS NATIONAL WESTMINSTER BANK P. L. C.'S NATIONAL WESTMINSTER BANK U. S. A. EIGHTEEN MILLION DOLLARS AND AMERICAN EXPRESS COMPANY'S AMERICAN EXPRESS BANK LIMITED THIRTEEN MILLION DOLLARS IF CONVICTED MR. ECHEVERRI FACES A MAXIMUM OF TEN YEARS IN PRISON AND A FINE OF AS MUCH AS DOUBLE THE AMOUNT OF THE FRAUD ACCORDING TO PROSECUTORS MECHANICAL TECHNOLOGY INCORPORATED SAID IT NAMED R. WAYNE DIESEL PRESIDENT AND CHIEF EXECUTIVE OFFICER FOLLOWING THE DEPARTURE OF MARK L. HYLAND FORTY SEVEN YEARS OLD MR. HYLAND NAMED PRESIDENT AND C. E. O. ABOUT A YEAR AGO LEFT BECAUSE OF REASONS QUOTE RELATED TO IRRECONCILABLE DIFFERENCES REGARDING CERTAIN MANAGEMENT PRACTICES QUOTE THE COMPANY SAID MR. DIESEL FORTY SEVEN PREVIOUSLY WAS PRESIDENT AND CHIEF FINANCIAL OFFICER OF LAWRENCE MANAGEMENT GROUP INCORPORATED THE MANAGEMENT SERVICES UNIT OF LAWRENCE INSURANCE GROUP INCORPORATED WHICH BOUGHT A FORTY NINE PERCENT STAKE IN MECHANICAL TECHNOLOGY IN JULY NINETEEN NINETY TWO MECHANICAL TECHNOLOGY PROVIDES TECHNOLOGY DEVELOPMENT SERVICES AND MAKES TESTING AND MEASUREMENT PRODUCTS FOR THE DEFENSE AND AEROSPACE MARKETS SCANDINAVIA AIRLINES SYSTEM SAID IT INTENDS TO LOWER OPERATING COSTS BY TWO POINT NINE ONE BILLION KRONOR THREE HUNDRED SIXTY TWO POINT NINE MILLION DOLLARS BY THE END OF NINETEEN NINETY FIVE THE COST CUTTING PROGRAM INVOLVES THE ELIMINATION OF TWO THOUSAND NINE HUNDRED FULL TIME JOBS OR ROUGHLY ONE OF EVERY SEVEN OF THE AIRLINES' TWENTY THOUSAND FULL TIME EMPLOYEES SAID S. A. S. THE PROGRAM APPROVED BY THE S. A. S. BOARD YESTERDAY EXPANDS SAVING MEASURES ANNOUNCED IN NOVEMBER BY INTERIM PRESIDENT JAN REINAS BY ROUGHLY FOUR HUNDRED MILLION KRONOR HOLLYWOOD MOVIE STUDIOS SCRAMBLED TO TAKE ADVANTAGE OF THE HYPE SURROUNDING YESTERDAY'S ACADEMY AWARD NOMINATIONS WHICH WILL PROBABLY BOOST ALL FIVE BEST PICTURE NOMINEES AT THE BOX OFFICE TYPICALLY A NUMBER OF THE NOMINATED FILMS LEAVE THEATERS OR ARE RELEASED ON VIDEOCASSETTE BY THE TIME THE ACADEMY OF MOTION PICTURE ARTS AND SCIENCES ANNOUNCES THE CANDIDATES AS A RESULT BOX OFFICES GENERALLY CAN'T BENEFIT FROM THE ENDORSEMENT THIS YEAR HOWEVER FOUR OF THE NOMINATED FILMS ARE STILL IN THEATERS THE FIFTH QUOTE THE FUGITIVE QUOTE IS BEING RERELEASED NATIONWIDE AT ONE THOUSAND THEATERS FRIDAY UNIVERSAL'S SCHINDLER'S LIST WAS THE BIG WINNER CAPTURING TWELVE NOMINATIONS THAT INCLUDED NODS FOR BEST PICTURE AND FOR ITS DIRECTOR STEVEN SPIELBERG THE HOLOCAUST EPIC WOULD BE EXPECTED TO SHOW ITS BIGGEST BOX OFFICE INCREASE FOLLOWING THE OSCAR CEREMONY ON MARCH TWENTY FIRST IF AS MANY EXECUTIVES EXPECT IT WINS THE OSCAR THE FILM SO FAR HAS GROSSED ABOUT THIRTY MILLION DOLLARS ANOTHER UNIVERSAL MOVIE IN THE NAME OF THE FATHER IS EXPECTED TO BENEFIT MORE IMMEDIATELY THE DRAMA ABOUT THE IRISH REPUBLICAN ARMY WAS THE BIG SURPRISE AT THE NOMINATIONS CEREMONY HERE GARNERING SEVEN NOMINATIONS INCLUDING BEST PICTURE THE FILM WHICH HAS TAKEN IN ONLY SIX POINT FOUR MILLION DOLLARS SINCE ITS OPENING DECEMBER TWENTY NINTH IS PLAYING AT JUST ONE HUNDRED SEVENTY SIX THEATERS ARMED WITH A NEW AD CAMPAIGN HERALDING THE ACADEMY'S TRIBUTE UNIVERSAL WILL EXPAND THE MOVIE'S RUN FRIDAY TO ABOUT FIVE HUNDRED THEATERS UNIVERSAL A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL COMPANY'S M. C. A. WON TWENTY THREE NOMINATIONS THIS YEAR TIME WARNER INCORPORATED'S WARNER BROTHERS HOPES TO SQUEEZE A FEW MORE DOLLARS OUT OF BEST PICTURE NOMINEE THE FUGITIVE THIS WEEKEND HOLLYWOOD EXECUTIVES SPECULATE THAT WHILE THE HARRISON FORD ACTION FILM DOESN'T HAVE MUCH OF A SHOT AT WINNING THE MAIN PRIZE THEY BELIEVE WARNER CAN SELL A LARGE CHUNK OF TICKETS IN ITS RERELEASE ANYWAY THE OTHER BEST PICTURE NOMINEES ARE COLUMBIA PICTURES' THE REMAINS OF THE DAY AND MIRAMAX FILMS' THE PIANO THOSE FILMS WHICH EACH WON EIGHT NOMINATIONS HAVE BEEN IN THEATERS FOR MORE THAN TEN WEEKS BUT ARE BELIEVED TO HAVE STRONG BOX OFFICE POTENTIAL MIRAMAX IS A UNIT OF WALT DISNEY COMPANY REMAINS WHICH ALSO CAPTURED NOMINATIONS FOR ANTHONY HOPKINS AND EMMA THOMPSON PLAYED THIS PAST WEEKEND AT ONE HUNDRED SEVENTY FOUR THEATERS ON FRIDAY THE FILM WILL MOVE TO ABOUT TWO HUNDRED FIFTY THEATERS MOSTLY IN MAJOR CITIES INDUSTRY EXECUTIVES SPECULATE THAT THE MOVIE WHICH HAS TAKEN IN ABOUT TWENTY MILLION DOLLARS COULD GROSS AN ADDITIONAL FIVE MILLION DOLLARS TO TEN MILLION DOLLARS COLUMBIA IS A UNIT OF SONY CORPORATION'S SONY PICTURES ENTERTAINMENT WHICH SAID ITS THREE SEPARATE DISTRIBUTION COMPANIES WON A TOTAL OF THIRTY ONE NOMINATIONS QUOTE THE PIANO QUOTE WHICH ALSO WON A NOMINATION FOR DIRECTOR JANE CAMPION WILL JUMP TO AS MANY AS SEVEN HUNDRED THEATERS THIS WEEKEND FROM THE CURRENT FOUR HUNDRED SCREENS THE FILM WILL INCREASE ITS SHOWING TO A TOTAL OF ABOUT ONE THOUSAND THEATERS FEBRUARY EIGHTEENTH MIRAMAX CO CHAIRMAN HARVEY WEINSTEIN ACKNOWLEDGING THAT SCHINDLER'S LIST IS THE FAVORITE NONETHELESS PREDICTED A MAJOR UPSET IN THE BEST PICTURE OR BEST DIRECTOR CATEGORY MR. WEINSTEIN ESTIMATED THAT THE PIANO WHICH HAS GROSSED TWENTY SIX MILLION DOLLARS WILL EASILY REACH A TAKE OF FORTY MILLION DOLLARS BEFORE THE AWARDS CEREMONY DISNEY PLANS TO RERELEASE WHAT'S LOVE GOT TO DO WITH IT TO REFLECT ITS WINNING NOMINATIONS FOR STARS ANGELA BASSETT AND LAURENCE FISHBURNE AND MANY MORE AUDIENCES WILL BE ABLE TO SEE YOUNG ACTOR LEONARDO DICAPRIO IN PARAMOUNT PICTURES' WHAT'S EATING GILBERT GRAPE WHEN THAT MOVIE EXPANDS TO AROUND SIX HUNDRED THEATERS ON MARCH FOURTH MR. DICAPRIO WAS NOMINATED FOR BEST SUPPORTING ACTOR PRODUCTIVITY OF AMERICAN BUSINESS SURGED AT A FOUR POINT TWO PERCENT ANNUAL RATE IN LAST YEAR'S FOURTH QUARTER AS FACTORIES MANAGED TO MAKE MANY MORE GOODS WITHOUT ADDING VERY MANY WORKERS FOR ALL OF LAST YEAR THE LABOR DEPARTMENT SAID THE PRODUCTIVITY OF AMERICAN BUSINESS EXCLUDING FARMS ROSE BY ONE POINT SIX PERCENT THAT WAS MORE THAN IN MOST RECENT YEARS BUT BELOW THE THREE POINT ONE PERCENT IMPROVEMENT IN NINETEEN NINETY TWO PRODUCTIVITY MEASURES OUTPUT PER HOUR OF WORK IMPROVING PRODUCTIVITY IS THE KEY TO RISING LIVING STANDARDS THE LABOR DEPARTMENT SAID THAT MANUFACTURING PRODUCTIVITY INCREASED AT A SEVEN POINT EIGHT PERCENT RATE IN THE FOURTH QUARTER THAT WAS PRIMARILY BECAUSE MAKERS OF DURABLE OR LONG LIVED GOODS IMPROVED PRODUCTIVITY AT A HUGE TWELVE POINT EIGHT PERCENT RATE FOR THE YEAR FACTORY PRODUCTIVITY ROSE BY FIVE POINT THREE PERCENT ITS BEST GAIN SINCE NINETEEN EIGHTY SEVEN OUTPUT ROSE FOUR POINT NINE PERCENT WHILE HOURS WORKED ACTUALLY FELL BY ZERO POINT THREE PERCENT ECONOMISTS ARE STILL DEBATING WHETHER THE RECENT IMPROVEMENTS IN PRODUCTIVITY REFLECT THE USUAL POST RECESSION TREND OR WHETHER SOMETHING MORE FUNDAMENTAL IS CHANGING UNIT LABOR COSTS IN NONFARM BUSINESSES AN IMPORTANT INDICATOR OF IN FLATION TRENDS FELL AT A ONE POINT TWO PERCENT RATE IN THE FOURTH QUARTER THEY WERE UP TWO POINT ONE PERCENT FOR THE YEAR SLIGHTLY HIGHER THAN LAST YEAR'S ONE POINT SEVEN PERCENT INCREASE IN MANUFACTURING UNIT LABOR COSTS FELL TWO POINT FOUR PERCENT LAST YEAR THE FIRST SUCH DECLINE SINCE NINETEEN EIGHTY SEVEN AMERICA WEST AIRLINES SAID ITS JANUARY TRAFFIC INCREASED ELEVEN POINT SIX PERCENT THE AIRLINE REPORTED REVENUE PASSENGER MILES OF NINE HUNDRED THIRTY ONE POINT FIVE MILLION FOR THE MONTH UP FROM EIGHT HUNDRED THIRTY FOUR POINT FIVE MILLION IN JANUARY NINETEEN NINETY TWO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED INCREASED TO SIXTY TWO POINT NINE PERCENT FROM FIFTY SEVEN PERCENT A YEAR EARLIER P. H. GLATFELTER COMPANY A MAKER OF PRINTING TOBACCO AND SPECIALTY PAPERS SAID IT WOULD ELIMINATE ONE HUNDRED JOBS AT ITS ECUSTA DIVISION TO IMPROVE PROFITABILITY THE LAYOFFS WHICH FOLLOW ONE HUNDRED EIGHTY LAST YEAR REPRESENT SEVEN PERCENT OF THE DIVISION'S TOTAL WORK FORCE THEY WILL BE MADE AT THE COMPANY'S PISGAH FOREST N. C. PLANT EFFECTIVE MARCH THIRTY FIRST GLATFELTER SAID TEXACO INCORPORATED SAID IT SETTLED ONE POINT ONE BILLION DOLLARS OF CLAIMS INVOLVING A ROYALTY DISPUTE WITH LOUISIANA FOR TWO HUNDRED FIFTY MILLION DOLLARS PUTTING TO REST A LEGAL WRANGLE THAT HAS PLAGUED THE COMPANY FOR A DECADE THE OUT OF COURT SETTLEMENT CALLS FOR TEXACO TO PAY THE STATE OVER A THREE YEAR PERIOD WITH A FIRST INSTALLMENT OF ONE HUNDRED FIFTY MILLION DOLLARS DUE SHORTLY AFTER THE AGREEMENT RECEIVES FINAL APPROVALS AN ADDITIONAL TWO PAYMENTS OF FIFTY MILLION DOLLARS EACH WILL BE MADE OVER THE FOLLOWING TWO YEARS THE COMPANY SAID IT HAS SET ASIDE RESERVES THAT WILL COVER THE FULL SETTLEMENT SO THERE WON'T BE ANY CHARGES TO EARNINGS AS PART OF THE AGREEMENT THE WHITE PLAINS N. Y. OIL COMPANY ALSO SAID IT WILL LAUNCH AN EXPANDED EXPLORATION PROGRAM IN THE STATE WHICH WILL RESULT IN THE CREATION OF FIVE HUNDRED JOBS THE PROGRAM WILL TRIGGER ONE HUNDRED FIFTY TWO MILLION DOLLARS OF SPENDING OVER FIVE YEARS BY TEXACO AND OTHER COMPANIES THAT MIGHT BECOME INVOLVED LOUISIANA HAS ALWAYS PLAYED AN IMPORTANT PART IN TEXACO'S OIL AND NATURAL GAS PRODUCTION WITH ACREAGE THERE ACCOUNTING FOR ABOUT TWENTY TWO PERCENT OF THE COMPANY'S U. S. OIL PRODUCTION INDEED TEXACO HAS BEEN A SIGNIFICANT PLAYER IN THE STATE ESPECIALLY IN GAS PRODUCTION SINCE EARLY IN THE CENTURY MANY OF THE FIFTY LEASES IN DISPUTE WERE ACQUIRED MORE THAN SIXTY YEARS AGO TEXACO SAID THAT PUTTING AN END TO THE SUIT WHICH WOULD HAVE GONE TO TRIAL IN OCTOBER IS A MAJOR ACCOMPLISHMENT QUOTE IT GIVES US CLEAR TITLE ON SIGNIFICANT ACREAGE QUOTE SAID ALFRED C. DECRANE JUNIOR TEXACO'S CHAIRMAN WE COULDN'T DO ANY MAJOR WORK ON THESE LEASES BECAUSE WE FACED THE THREAT OF LOSING THEM WALL STREET ANALYSTS EXPECT RESOLUTION OF THE LITIGATION WILL ALLOW TEXACO TO INCREASE ITS U. S. PRODUCTION AND ADD TO ITS DOMESTIC RESERVE BASE SINCE IT WILL BE ABLE TO ONCE AGAIN AGGRESSIVELY EXPLORE AND DEVELOP OIL PROSPECTS IN LOUISIANA BERNARD PICCHI OF KIDDER PEABODY AND COMPANY SAID THE ODDS ARE GOOD THAT TEXACO WILL BE ABLE TO SQUEEZE ADDITIONAL BARRELS OUT OF THE STATE THERE'S BEEN A REVOLUTION IN THE TYPE OF TECHNOLOGY AVAILABLE FOR EXPLORATION AND PRODUCTION SINCE THE COMPANY GOT TIED UP IN THE DISPUTE MORE THAN A DECADE AGO HE SAID THE SETTLEMENT IS ALSO IMPORTANT TO NEW ORLEANS BASED LOUISIANA LAND AND EXPLORATION COMPANY WHICH HAD LEASED TEXACO SOME OF THE LAND IN DISPUTE IN FACT LOUISIANA LAND AS A CO DEFENDANT IN THE SUIT HAS AGREED TO PAY TEXACO FIVE MILLION DOLLARS TOWARD THE SETTLEMENT BENTON OIL AND GAS COMPANY AN OIL AND GAS PRODUCTION COMPANY BASED IN OXNARD CALIFORNIA ALSO STANDS TO GAIN BENTON OWNS A WORKING INTEREST IN THREE OF THE LEASES INVOLVED REPRESENTING ALMOST ALL OF THE COMPANY'S U. S. OIL PRODUCTION AND RESERVE BASE WITH THE DISPUTE PUT TO REST THE COMPANY SAID LENDERS WILL NOW ALLOW IT TO BORROW AGAINST THESE RESERVES IMPROVING THE COMPANY'S FINANCIAL FLEXIBILITY IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TEXACO CLOSED AT SIXTY SEVEN DOLLARS A SHARE UP THIRTY SEVEN POINT FIVE CENTS AND LOUISIANA LAND CLOSED AT FORTY DOLLARS AND TWENTY FIVE CENTS A SHARE UP TWELVE POINT FIVE CENTS IN NASDAQ STOCK MARKET TRADING BENTON CLOSED AT FOUR POINT THREE FOUR THREE SEVEN FIVE DOLLARS A SHARE UP THREE POINT ONE TWO FIVE CENTS THE DISPUTE WHICH TEXACO SAID SURFACED IN THE EARLY NINETEEN EIGHTIES INVOLVED CLAIMS BY LOUISIANA THAT TEXACO HAD UNDERPAID ITS NATURAL GAS ROYALTIES TO THE STATE DATING TO NINETEEN SEVENTY A TEXACO SPOKESMAN SAID THE ORIGINAL AMOUNT SOUGHT BY LOUISIANA WAS THREE HUNDRED EIGHTY SEVEN MILLION DOLLARS AND THE NUMBER GREW AS TIME PASSED THE STATE CLAIMED THAT TEXACO WAS OBLIGATED TO PAY ROYALTIES ON THE GAS IT PRODUCED BASED ON THE MARKET VALUE OF THE GAS RATHER THAN ON THE CONTRACTUAL PRICE THE COMPANY WAS ACTUALLY GETTING THE TEXACO SPOKESMAN SAID THAT THE CONTRACTS WHICH WERE TYPICALLY STRUCK ON A LONG TERM BASIS FETCHED CONSIDERABLY LESS THAN SPOT OR NONCONTRACT COMMITMENTS THE STATE ALLEGED THAT TEXACO SHOULD HAVE SOLD A CERTAIN PORTION OF GAS FROM STATE LEASES AS NEW CONTRACTS WHICH WOULD HAVE COMMANDED HIGHER PRICES LOUISIANA'S CLAIMS BECAME ENTANGLED IN TEXACO'S BANKRUPTCY PROCEEDINGS IN NINETEEN EIGHTY SEVEN WHICH TURNED THE STATE INTO ONE OF THE COMPANY'S MAJOR CREDITORS UPON THE COMPANY'S EMERGENCE FROM THE PROCEEDINGS THE CLAIMS WERE REMANDED TO BANKRUPTCY COURT IN LOUISIANA THE SETTLEMENT MUST STILL BE APPROVED BY LOUISIANA'S MINERAL BOARD AS WELL AS A FEDERAL DISTRICT COURT JUDGE IN THE STATE STORA A. B. THE LARGEST FOREST PRODUCTS GROUP IN EUROPE SAID ITS STORA CELL UNIT INTENDS TO RAISE PRICES FOR PAPER PULP MARCH FIRST FOR LONG FIBER PULP THE PRICE INCREASES TO FIVE HUNDRED TEN DOLLARS A TON FROM FOUR HUNDRED SIXTY DOLLARS A TON WHILE THE PRICE OF SHORT FIBER PULP RISES TO FOUR HUNDRED EUROPEAN CURRENCY UNITS FOUR HUNDRED FORTY TWO DOLLARS A TON FROM THREE HUNDRED FIFTY E. C. U. A TON ASK GROUP INCORPORATED SAID PIER CARLO FALOTTI ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER RESIGNED FOR PERSONAL REASONS MR. FALOTTI FIFTY ONE YEARS OLD HAD BEEN WITH THE SOFTWARE CONCERN SINCE THE SUMMER OF NINETEEN NINETY TWO BEFORE THAT HE WAS PRESIDENT OF DIGITAL EQUIPMENT CORPORATION'S BIG EUROPEAN UNIT HE HAD WORKED TWENTY THREE YEARS AT DIGITAL A SPOKESWOMAN SAID MR. FALOTTI'S UNEXPECTED RESIGNATION WAS DUE TO QUOTE FAMILY CONSIDERATIONS QUOTE BUT WOULDN'T ELABORATE SHE SAID THE COMPANY DIDN'T KNOW OF MR. FALOTTI'S PROFESSIONAL PLANS AND THAT HE WASN'T AVAILABLE FOR COMMENT LESLIE WRIGHT FORTY ASK'S EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED ACTING OPERATING OFFICER UNTIL A NEW CHIEF EXECUTIVE IS FOUND FOR ITS FISCAL SECOND QUARTER ENDED DECEMBER THIRTY FIRST ASK POSTED A NET LOSS OF THIRTEEN POINT SEVEN MILLION DOLLARS OR FIFTY NINE CENTS A SHARE COMPARED TO NET INCOME OF THREE POINT SIX MILLION DOLLARS OR SIXTEEN CENTS A SHARE A YEAR EARLIER REVENUE FELL TO ONE HUNDRED POINT SIX MILLION DOLLARS FROM ONE HUNDRED THIRTEEN POINT FIVE MILLION DOLLARS FOR THE SIX MONTHS ASK POSTED A NET LOSS OF TWENTY POINT FIVE MILLION DOLLARS OR EIGHTY NINE CENTS A SHARE ON REVENUE OF ONE HUNDRED EIGHTY FOUR POINT FIVE MILLION DOLLARS COMPARED WITH A YEAR EARLIER LOSS OF FOUR MILLION DOLLARS OR EIGHTEEN CENTS A SHARE ON REVENUE OF ONE HUNDRED NINETY SEVEN POINT THREE MILLION DOLLARS ON THE NASDAQ STOCK MARKET YESTERDAY ASK CLOSED AT EIGHT POINT SIX TWO FIVE DOLLARS DOWN THIRTY SEVEN POINT FIVE CENTS OR FOUR POINT TWO PERCENT STAFF BUILDERS INCORPORATED ACQUIRED MEDICAL STAFFING SPECIALISTS INCORPORATED GRETNA LOUISIANA AND DIGNITY INCORPORATED BRANSON MISSOURI TERMS WEREN'T DISCLOSED RAMSAY H. M. O. INCORPORATED AGREED TO ACQUIRE THROUGH A SUBSIDIARY ALL THE ASSETS OF GENESIS HEALTH SYSTEM INCORPORATED ORLANDO FLORIDA TERMS WEREN'T DISCLOSED GENERAL ELECTRIC COMPANY'S G. E. CAPITAL MODULAR SPACE UNIT DEVON PENNSYLVANIA AGREED TO BUY THE MODULAIRE DIVISION OF WASTE MANAGEMENT INCORPORATED A UNIT OF WMX TECHNOLOGIES INCORPORATED TERMS WEREN'T DISCLOSED HELEN OF TROY CORPORATION'S SHAREHOLDERS APPROVED A PLAN TO REINCORPORATE THE COMPANY IN BERMUDA SHAREHOLDERS WILL EXCHANGE THEIR SHARES FOR AN EQUAL NUMBER OF SHARES IN NEWLY FORMED HELEN OF TROY LIMITED BERMUDA CAVALIER HOMES INCORPORATED WILL OPEN AN ADDITIONAL FACILITY TO PRODUCE MOBILE HOMES IN WINFIELD ALABAMA FOR ITS BUCCANEER SUBSIDIARY SIEMENS A. G. ANNOUNCED IT HAS ORDERS FOR TELECOMMUNICATIONS PROJECTS IN THE PHILIPPINES AND VIETNAM THE CONTRACT IN THE PHILIPPINES IS VALUED AT ABOUT TWO HUNDRED THIRTY MILLION MARKS ONE HUNDRED THIRTY POINT THREE MILLION DOLLARS AND INVOLVES INSTALLING ABOUT ONE POINT TWO MILLION DIGITAL TELEPHONES FOR PHILIPPINE LONG DISTANCE TELEPHONE COMPANY THE SECOND CONTRACT IS WITH VIETNAM POSTS AND TELECOMMUNICATIONS AND IS VALUED AT TWENTY MILLION MARKS THE PROJECT WOULD MODERNIZE HO CHI MINH CITY'S NETWORK AND INVOLVES ABOUT SIXTY THOUSAND CONNECTIONS THE COMPANY SAID CONGRESS VOTES DRASTIC REDUCTIONS IN ARMY AND MARINE FORCE LEVELS RAISES CORPORATE TAXES BY FIFTY BILLION DOLLARS SLICES SOCIAL SECURITY BENEFITS AND CUTS BILLIONS OF CRIME FIGHTING AND HIGHWAY FUNDS EARMARKED FOR TEXAS IT MAY SOUND LIKE POLITICAL SUICIDE BUT ALL WOULD BE DISTINCT POSSIBILITIES IF THE SENATE LATER THIS MONTH APPROVES A PROPOSED CONSTITUTIONAL AMENDMENT MANDATING A BALANCED BUDGET DESPITE DECLINING PUBLIC FERVOR FOR DEFICIT REDUCTION INSIDERS SAY THERE'S AN EVEN SHOT THE AMENDMENT WILL PASS CONGRESS EVERY LAWMAKER WHO VOTES FOR IT SHOULD HAVE TO ANSWER ONE SIMPLE QUESTION HOW WITH SPECIFICITY WOULD HE OR SHE BALANCE THE BUDGET BY THE END OF THE DECADE TO REACH A BALANCED BUDGET BY FISCAL TWO THOUSAND AN ADDITIONAL SIX HUNDRED BILLION DOLLARS IN BUDGET CUTS OR TAX INCREASES MUST BE ENACTED OVER THE NEXT FIVE YEARS BY CONTRAST LAST YEAR CONGRESS BY THE GRAND MARGIN OF ONE VOTE REDUCED THE DEFICIT BY FOUR HUNDRED THIRTY THREE BILLION DOLLARS A POLITICALLY REALISTIC ROAD MAP TO BALANCING THE BUDGET IN FIVE YEARS WOULD HAVE TWENTY FIVE PERCENT COME FROM CUTTING DEFENSE SPENDING ANOTHER QUARTER FROM HIGHER REVENUES AND HALF FROM REDUCING SPENDING INCLUDING ENTITLEMENTS ON TAXES IF A FEW MORE EXCISE AND ENERGY LEVIES ARE ENACTED SOME LOOPHOLES ARE CLOSED AND THE RATES ON UPPER INCOME TAXPAYERS ARE BOOSTED A LITTLE MORE THAT STILL WOULD RAISE LESS THAN ONE HUNDRED BILLION DOLLARS OVER FIVE YEARS THUS THE MOST APPETIZING TARGET CORPORATE TAXES POLLS SHOW MOST AMERICANS STILL THINK CORPORATIONS DON'T PAY ENOUGH TAXES AND CORPORATE TAXES WOULD BE AN INEVITABLE TARGET ON THE DOMESTIC SPENDING SIDE ASSUME MEDICARE AND MEDICAID ARE WHACKED ONE HUNDRED BILLION DOLLARS OR ALMOST DOUBLE THE POLITICALLY AGONIZING CUTBACKS THAT CONGRESS VOTED LAST YEAR THEN START ELIMINATING ENTIRE PROGRAMS KILL OUTRIGHT EVERY HIGHWAY DEMONSTRATION PROJECT THE SPACE STATION AMTRAK SUBSIDIES AID TO PUBLIC BROADCASTING LEGAL SERVICES FUNDING FOR THE ONE HUNDRED THOUSAND NEW COPS AND ALL FEDERAL SUPPORT FOR THE ARTS LIKEWISE DO AWAY WITH ENTIRE AGENCIES THE COMMERCE DEPARTMENT THE ARMY CORPS OF ENGINEERS THE GENERAL SERVICES ADMINISTRATION THE INTERSTATE COMMERCE COMMISSION AND THE SMALL BUSINESS ADMINISTRATION FOR GOOD MEASURE CUT CONGRESS'S BUDGET BY A THIRD AND ELIMINATE HALF OF THE FOREIGN AID TO THE TWO BIGGEST RECIPIENTS ISRAEL AND EGYPT ALTOGETHER INCLUDING HEALTH THOSE CUTBACKS STILL WOULD TOTAL LESS THAN TWO HUNDRED BILLION DOLLARS OVER FIVE YEARS TO GET THE ONE HUNDRED BILLION DOLLAR PLUS MORE THERE'S ONLY ONE TARGET BIG ENOUGH SOCIAL SECURITY IF THESE BENEFIT INCREASES ARE LIMITED TO THE ANNUAL COST OF LIVING RISE MINUS TWO PERCENT SOMETHING POLITICIANS INSIST IS POLITICALLY PERILOUS WE'RE STILL TWENTY BILLION DOLLARS SHORT OF THE GOAL THE DEFENSE BUDGET WOULD HAVE TO BE SLASHED AN ADDITIONAL FIFTEEN PERCENT THE PENTAGON NOW IS FORMULATING WHAT THAT WOULD MEAN AND ONE TOP DEFENSE DEPARTMENT OFFICIAL LAID OUT THE LIKELY CONSEQUENCES THE PROJECTED FIVE HUNDRED THOUSAND ARMY FORCE LEVEL WOULD BE CUT TO FOUR HUNDRED THOUSAND MARINES WOULD DROP FROM A PROJECTED ONE HUNDRED SEVENTY FOUR THOUSAND TO ABOUT ONE HUNDRED FORTY FIVE THOUSAND AND THE RESERVES WOULD BE REDUCED BY A THIRD MOST MODERNIZATION EFFORTS WOULD BE ABANDONED AND THE EIGHT BILLION DOLLARS A YEAR THE PENTAGON ENVISIONS SPENDING ON THE NEW TECHNOLOGIES WOULD BE SCALED BACK TO FIVE BILLION DOLLARS THE BOTTOM LINE THE STRATEGY OF THE JOINT CHIEFS OF STAFF AND PRESIDENT CLINTON THAT THE U. S. BE PREPARED TO FIGHT IN TWO SIMULTANEOUS REGIONAL CONFLICTS WOULD HAVE TO BE SCRAPPED TO BATTLE THE MEASURE THE WHITE HOUSE HAS DEVISED A SERIES OF BUDGET BALANCING OPTIONS AND SPELLED OUT THE SPECIFIC POLICY IMPLICATIONS INCLUDING THE EFFECTS ON EACH STATE IN TEXAS FOR EXAMPLE IF THE REDUCTIONS CAME FROM AN ACROSS THE BOARD SPENDING CUT BY NINETEEN NINETY NINE THE AVERAGE SOCIAL SECURITY RECIPIENT WOULD GET NINE HUNDRED FORTY SIX DOLLARS LESS A YEAR THE STATE WOULD LOSE ONE POINT EIGHT BILLION DOLLARS IN DEFENSE SPENDING AND ALMOST FOUR BILLION DOLLARS IN REDUCED FEDERAL AID FOR DOMESTIC PROJECTS SCARE TACTICS PROPONENTS WILL SCREAM YEAH BUT IT MAKES THE POINT THAT THIS IS REAL STUFF THOSE WHO WANT TO AVOID HIGHER TAXES SHOULD SAY WHERE THEY'D FIND AN ADDED ONE HUNDRED FIFTY BILLION DOLLARS IN SPENDING CUTS OR THOSE WHO WANT TO EXEMPT DEFENSE SHOULD SPECIFY SIMILAR SAVINGS IN MORE TAXES OR DOMESTIC OUTLAYS TO SIMPLIFY MATTERS ASK LAWMAKERS TO BALANCE ONE BUDGET FISCAL TWO THOUSAND A GOOD BENCHMARK IS THE PROPOSAL BY THE CONCORD COALITION THE PAUL TSONGAS AND WARREN RUDMAN LED EFFORT TO IMPOSE FISCAL DISCIPLINE THAT WOULD LEAD TO MORE THAN TWO HUNDRED BILLION DOLLARS OF DEFICIT REDUCTION THAT YEAR THEY WOULD CLOSE UNDERUSED VETERANS ADMINISTRATION HOSPITALS END AMTRAK SUBSIDIES ELIMINATE THE SPACE STATION REDUCE THE LEGISLATIVE BRANCH'S BUDGET BY FIFTEEN PERCENT AND CUT FARM PAYMENTS AMONG OTHER CUTBACKS THAT'S LESS THAN FORTY BILLION DOLLARS HOWEVER SO THEN THE CONCORD COALITION GETS PRETTY DRACONIAN MEANS TESTING ALL ENTITLEMENTS INCLUDING SOCIAL SECURITY RAISING THE RETIREMENT AGE TO SIXTY EIGHT ENACTING A FIFTY CENT A GALLON GASOLINE TAX SLAPPING ADDED TAXES ON BEER AND BOOZE AND SHARPLY CURTAILING THE HOME MORTGAGE DEDUCTION ASK THOSE BUDGET BALANCING POLITICIANS IF THEY SUPPORT THIS AGENDA SUPPLY SIDER JACK KEMP OPPOSES THE AMENDMENT BECAUSE HE THINKS IT'S QUOTE A TRAP QUOTE TO RAISE TAXES THE HEAD OF THE JOINT CHIEFS OF STAFF GENERAL JOHN SHALIKASHVILI OPPOSES IT OUT OF FEAR IT WOULD DECIMATE NATIONAL SECURITY AND ROBERT GREENSTEIN OF THE CENTER ON BUDGET AND POLICY PRIORITIES WORRIES IT WOULD UNDULY HURT POOR PEOPLE THEY ALL COULD BE RIGHT THERE'S LITTLE DOUBT THAT IN SEVERAL YEARS TOUGHER DEFICIT REDUCTION MEASURES WILL BE NECESSARY INCLUDING CRACKING DOWN ON THE GROWTH OF ENTITLEMENT SPENDING AND GETTING MORE REVENUES HEALTH CARE LEGISLATION THE REPUBLICAN PROPOSALS AS WELL AS THE ADMINISTRATION'S ONLY ADDS TO THIS INEVITABILITY BUT THOSE ISSUES OUGHT TO BE DEBATED NOT HIDDEN UNDER THE CLOAK OF AN AMENDMENT THAT BALANCES THE BUDGET BUT DOESN'T TELL PEOPLE HOW IT WILL BE DONE TWO DECADES AGO A VETERAN HOUSE MEMBER JAMES BURKE EXPLAINED HOW HE STAYED IN CONGRESS BY VOTING FOR EVERY SPENDING BILL AND AGAINST EVERY TAX HIKE AND DEBT CEILING INCREASE WHEN A NAIVE YOUNG REPORTER SUGGESTED THAT THIS WAS A PRESCRIPTION FOR CHAOS JIMMY BURKE PUFFED ON HIS CIGAR SMILED AND SAID YOU THINK THIS PLACE IS ON THE LEVEL IN A COUPLE OF WEEKS THOSE VOTING TO AMEND THE CONSTITUTION WITH THIS SHAM WILL IN THE WORDS OF JIMMY BURKE SHOW THEY TOO KNOW THE PLACE ISN'T ON THE LEVEL THE ANNUAL RATE OF INFLATION IN BRAZIL'S MAJOR CITIES ROSE TWO POINT ONE PERCENTAGE POINTS TO FORTY ONE POINT THREE PERCENT BETWEEN DECEMBER THIRTIETH AND JANUARY TWENTY EIGHTH ACCORDING TO A GOVERNMENT REPORT RELEASED YESTERDAY THE RATE WAS UP FROM THE THIRTY NINE POINT TWO PERCENT IN THE ELEVEN LARGEST CITIES FROM DECEMBER FOURTEENTH TO JANUARY FOURTEENTH THE GOVERNMENT'S NATIONAL INSTITUTE OF GEOGRAPHY AND STATISTICS SAID BY CONTRAST THE RATE WAS TWENTY EIGHT PERCENT A YEAR EARLIER ACCORDING TO ECONOMIC DATA RELEASED AT THE TIME BRAZIL HAS NO SINGLE INFLATION INDEX THE GOVERNMENT USES SEVERAL OFFICIAL AND PRIVATE INDEXES TO CALCULATE THE COST OF LIVING JAPAN AIRLINES COMPANY IS STUDYING THE GOVERNMENT'S OFFICIAL LABOR ADJUSTMENT FUND AS AN QUOTE OPTION QUOTE IN ITS LARGE SCALE COST CUTTING PLAN A COMPANY SPOKESMAN SAID HOWEVER IT HASN'T DECIDED WHETHER TO APPLY FOR THE SUBSIDY WHICH IS PAID BY THE GOVERNMENT TO COVER PART OF THE LABOR COSTS IN STRUGGLING INDUSTRIES HE SAID HE DENIED A JAPANESE NEWSPAPER REPORT THAT J. A. L. ALREADY HAS NOTIFIED ITS LABOR UNION OF ITS INTENTION TO APPLY FOR THE FUND THIS YEAR'S TRADE NEGOTIATIONS BETWEEN THE U. S. AND JAPAN SEEM LIKELY TO RESULT YET AGAIN IN EITHER AN IMPASSE OR A FACE SAVING AGREEMENT IT WILL PROBABLY BE SUFFICIENTLY AMBIGUOUS TO ENABLE BOTH PRIME MINISTER MORIHIRO HOSOKAWA AND PRESIDENT CLINTON TO EXPRESS SATISFACTION WITH THE OUTCOME AT THEIR SUMMIT MEETING IN WASHINGTON ON FRIDAY THE MODEST STIMULUS PACKAGE THAT MR. HOSOKAWA'S COALITION GOVERNMENT HAS JUST ENDORSED WILL CONTRIBUTE TO THIS RESULT ACCORDING TO THE RITUAL OF PREVIOUS U. S. JAPAN NEGOTIATIONS THE AMERICANS VIGOROUSLY ASSERT THAT THE FUNDAMENTAL REASON FOR JAPAN'S LARGE TRADE SURPLUS WITH THE U. S. IS JAPAN'S CLOSED MARKETS AND THE OBVIOUS REMEDY IS TO OPEN THEM BY SPECIFIC MEASURES WITH PRECISE TARGETS ATTACHED TO THEM THE JAPANESE NEGOTIATORS CONTEND NO LESS VIGOROUSLY THAT THE REAL CULPRIT IS THE LARGE U. S. BUDGET DEFICIT AND THE OBVIOUS REMEDY IS TO ELIMINATE IT BY RAISING TAXES AND REDUCING SPENDING IN FACT NEITHER SIDE OF THE DEBATE HAS MUCH GOING FOR IT THE AMERICAN CONTENTION IS ACCURATE BUT LARGELY IRRELEVANT WHILE THAT OF THE JAPANESE IS SIMPLY WRONG MOREOVER JAPAN HAS A STRIKING OPPORTUNITY TO DEPART FROM THE STANDARD RITUAL BY A SERIES OF INNOVATIVE ECONOMIC POLICIES THAT WOULD DO WELL AT HOME WHILE DOING GOOD ABROAD REVERSING JAPAN'S PROTRACTED RECESSION AND REDUCING ITS CHRONIC EXPORT SURPLUSES WITH THE U. S. AND THE REST OF THE WORLD THE AMERICAN STANCE IN THE STANDARD RITUAL IS IRRELEVANT BECAUSE WHILE JAPAN'S DOMESTIC MARKETS ARE DEMONSTRABLY LESS PERMEABLE THAN MARKETS ELSEWHERE THE U. S. CURRENT ACCOUNT DEFICIT COVERING BOTH MERCHANDISE AND SERVICES TRADE WITH JAPAN AS WELL AS WITH THE REST OF THE WORLD DOES NOT RESULT FROM THAT FACT IT RESULTS FROM AND IS EQUAL TO THE AMOUNT BY WHICH U. S. GROSS DOMESTIC SAVING FALLS SHORT OF U. S. GROSS DOMESTIC INVESTMENT THUS THE GLOBAL U. S. CURRENT ACCOUNT DEFICIT ABOUT NINETY BILLION DOLLARS IN NINETEEN NINETY THREE MORE THAN HALF OF WHICH WAS WITH JAPAN WON'T BE SIGNIFICANTLY HELPED BY THE OPENING OF JAPAN'S MARKETS ALTHOUGH SUCH A MOVE IS LONG OVERDUE THE JAPANESE POSITION HAS MORE SERIOUS FLAWS THAN THE AMERICAN ONE THE FIRST FLAW IS EMPIRICAL THE LINK THAT THE JAPANESE ASSERT BETWEEN THE TWO DEFICITS DOESN'T EXIST AS THE ACCOMPANYING GRAPH SHOWS SINCE THE MID NINETEEN EIGHTIES THE U. S. BUDGET DEFICIT AND CURRENT ACCOUNT DEFICIT HAVE SHOWN NO CORRELATION THEY MOVED IN OPPOSITE DIRECTIONS MORE OFTEN FIVE YEARS THAN IN THE SAME DIRECTION TWO YEARS ALTHOUGH THE TWO DEFICITS HAVE SOMETIMES BEEN REFERRED TO AS QUOTE TWINS QUOTE THEY ARE AT MOST THIRD COUSINS SECOND THE JAPANESE REFRAIN IS WEAK ON THEORETICAL GROUNDS ESTABLISHING A CAUSAL LINK BETWEEN BUDGET DEFICITS AND CURRENT ACCOUNT DEFICITS INVOLVES A QUESTIONABLE CHAIN OF REASONING ON THE ONE HAND GOVERNMENT BORROWING TO FINANCE BUDGET DEFICITS IS SUPPOSED TO DEPLETE PRIVATE SAVINGS BY A CORRESPONDING AMOUNT THEREBY INCREASING THE IMBALANCE BETWEEN DOMESTIC SAVINGS AND INVESTMENT AND HENCE RAISING THE U. S. CURRENT ACCOUNT DEFICIT ON THE OTHER HAND GOVERNMENT BORROWING ALSO RAISES INTEREST RATES AND CROWDS OUT PRIVATE INVESTMENT THEREBY REDUCING THE IMBALANCE BETWEEN SAVINGS AND INVESTMENT AND PRESUMABLY LOWERING THE CURRENT ACCOUNT DEFICIT HOW THESE COMPLEX AND OFFSETTING EFFECTS NET OUT IS NOT WELL UNDERSTOOD AND DOES NOT WARRANT THE STANDARD ADMONITION IMPARTED BY THE JAPANESE TO THE AMERICANS THAT CUTTING THE U. S. BUDGET DEFICIT WOULD CURE THE TRADE DEFICIT THIRD THE JAPANESE EMPHASIS ON THE CAUSAL EFFECT OF THE U. S. BUDGET DEFICIT CARRIES WITH IT MISTAKEN IMPLICATIONS FOR POLICY THE USUAL POLICY INFERENCE IS THAT ELIMINATING OR AT LEAST NARROWING THE BUDGET DEFICIT WILL AFFECT THE CURRENT ACCOUNT IMBALANCE BY AN EQUAL AMOUNT BUT THIS INFERENCE IS WRONG THE U. S. CURRENT ACCOUNT DEFICIT CAN BE REDUCED ONLY IF GROSS SAVING IN THE U. S. IS INCREASED OR GROSS INVESTMENT IS DECREASED OR SAVING RISES BY MORE THAN INVESTMENT SO THE GAP BETWEEN THEM NARROWS IF THE BUDGET DEFICIT IS REDUCED BY FISCAL POLICIES THAT INCREASE TAXES ON HIGH SAVERS THERE WILL BE LITTLE OR NO EFFECT ON THE CURRENT ACCOUNT DEFICIT BECAUSE REVENUES RAISED FROM THESE SOURCES WILL SIMPLY REDUCE THE SAVINGS THAT WOULD OTHERWISE HAVE OCCURRED THE SAVINGS INVESTMENT IMBALANCE WON'T BE CHANGED AND THE CURRENT ACCOUNT DEFICIT WON'T BE REDUCED FINALLY IT IS WORTH REMINDING JAPANESE POLICY MAKERS AND THE INFLUENTIAL BUREAUCRATS IN THE MINISTRIES OF FINANCE FOREIGN AFFAIRS AND TRADE AND INDUSTRY THAT THE U. S. SAVINGS INVESTMENT IMBALANCE IS NEITHER MORE NOR LESS CULPABLE THAN IS JAPAN'S CORRESPONDING BUT OPPOSITE IMBALANCE THE EXCESS OF JAPAN'S DOMESTIC SAVINGS OVER ITS DOMESTIC INVESTMENT IS THE MIRROR IMAGE OF THE U. S. SHORTFALL OF SAVINGS OVER DOMESTIC INVESTMENT AND THIS EXCESS IS THE FUNDAMENTAL SOURCE OF JAPAN'S CHRONIC EXPORT SURPLUSES THIS KEY FACT PROVIDES A BASIS FOR THE JAPANESE TO DEPART FROM THE ESTABLISHED RITUAL AND INSTEAD INITIATE ECONOMIC POLICIES THAT WOULD REDRESS JAPAN'S RECESSION AND MITIGATE ITS EXPORT SURPLUSES WITH THE REST OF THE WORLD THE APPROPRIATE SET OF REMEDIAL POLICIES WOULD INCLUDE ONE LOWERING JAPAN'S MARGINAL INCOME TAX RATES THE HIGHEST INDIVIDUAL RATE IS FIFTY PERCENT THE HIGHEST CORPORATE RATE THIRTY NINE POINT FIVE PERCENT TWO ELIMINATING THE EXISTING THREE PERCENT NATIONAL CONSUMPTION TAX EXPORT SALES ALWAYS HAVE BEEN EXEMPTED FROM THIS TAX AND THREE REMOVING THE SUBSTANTIAL TAX EXEMPTION OF INCOME FROM PRIVATE SAVINGS FROM THE STANDPOINT OF JAPAN'S NARROWLY FOCUSED MINISTRY OF FINANCE THE FIRST AND SECOND OF THESE MEASURES MIGHT IN THE SHORT RUN REDUCE REVENUES BUT THE THIRD MEASURE WOULD INCREASE THEM THEREBY MAKING THE PACKAGE MORE PALATABLE IN COMBINATION THE MEASURES WOULD BOOST DOMESTIC SPENDING REDUCE SAVINGS AND THEREBY DIMINISH THE IMBALANCE BETWEEN SAVING AND INVESTMENT THAT IS RESPONSIBLE FOR JAPAN'S CHRONIC EXPORT SURPLUSES MR. HOSOKAWA'S GOVERNMENT IS EVIDENTLY NOW PREPARED TO EMBRACE THE FIRST OF THESE MEASURES BUT ONLY TO A VERY LIMITED EXTENT BECAUSE THE INCOME TAX REDUCTION WOULD BE ONLY FOR A SINGLE YEAR AND THE SALES TAX IS TO BE MAINTAINED AND PERHAPS LATER INCREASED THE EFFECTS ARE LIKELY TO BE MINIMAL IF INSTEAD JAPAN WERE TO MAKE A MAJOR DEPARTURE FROM THE RITUAL OF THE PAST ITS RECESSION WOULD BE REVERSED AND ITS IMPORTS FROM THE U. S. AND THE REST OF THE WORLD WOULD INCREASE AS FOR THE U. S. NEGOTIATORS WOULD BE WELL ADVISED TO EMPHASIZE SUCH IMPROVEMENTS IN JAPAN'S MACROECONOMIC POLICIES RATHER THAN TRY TO OPEN JAPAN'S PROTECTED MARKETS BY SEEKING TO MANAGE THEM MR. WOLF IS DEAN OF THE RAND GRADUATE SCHOOL IN SANTA MONICA CALIFORNIA AND DIRECTOR OF INTERNATIONAL ECONOMIC RESEARCH AT ITS NATIONAL DEFENSE RESEARCH INSTITUTE WILLIAM PERRY UNANIMOUSLY CONFIRMED BY THE SENATE LAST WEEK TO SUCCEED LES ASPIN AS SECRETARY OF DEFENSE GOES BACK TO CAPITOL HILL THIS WEEK TO TESTIFY IN SUPPORT OF THE PRESIDENT'S DEFENSE PROGRAM AND BUDGET ONE MIGHT THINK THAT THESE HEARINGS WILL BE UNEVENTFUL AFTER ALL THE FIFTY BILLION DOLLAR DEFENSE BUDGET GAP THAT MR. ASPIN DISCOVERED LATE LAST YEAR HAS EVIDENTLY ALL BUT EVAPORATED MR. PERRY BRINGS THE BENEFITS OF HIS IMPRESSIVE EXPERIENCE TO THE JOB AND HE TAKES OVER FROM MR. ASPIN AFTER HAVING BEEN ASSURED IN THE PRESIDENT'S STATE OF THE UNION ADDRESS THAT HE WILL GET THE RESOURCES HE NEEDS TO DO THE JOB PROBLEM SOLVED RIGHT WRONG WE ARE STILL LEFT WITH THREE HARD QUESTIONS IS THE DEFENSE STRATEGY THE RIGHT ONE TO PROTECT AMERICAN INTERESTS WILL THE PRESIDENT'S DEFENSE BUDGET BE ENOUGH TO PAY FOR IT AND WILL MR. CLINTON REALLY FIGHT FOR APPROVAL OF HIS BUDGET OR WILL HE ACQUIESCE IN CONGRESSIONAL DEFENSE BUDGET CUTS TO HELP PAY FOR HIS DOMESTIC PROGRAMS AND DEFICIT REDUCTION THE HEARINGS THIS WEEK ARE THE PLACE TO START LOOKING FOR ANSWERS THE FIFTY BILLION DOLLAR BUDGET GAP SOMEHOW SHRANK TO ABOUT THIRTY BILLION DOLLARS FOLLOWING NEGOTIATIONS BETWEEN THE PENTAGON AND OFFICE OF MANAGEMENT AND BUDGET THE GAP WAS REDUCED BY AN ADDITIONAL TEN BILLION DOLLARS WHEN MR. CLINTON AGREED TO ADD THAT AMOUNT TO THE PENTAGON'S FIVE YEAR SPENDING PLAN MR. PERRY HAS SAID HE WILL SOMEHOW BE ABLE TO MAKE UP THE REMAINING DIFFERENCE AFTER ALL WE ARE ONLY TALKING ABOUT FINDING AN ADDITIONAL FOUR BILLION DOLLAR SAVINGS IN EACH OF THE NEXT FIVE YEARS OR ARE WE THE DEBATE IS ABOUT MORE THAN THAT IT IS ABOUT AMERICA'S PLACE IN THE POST COLD WAR WORLD TROUBLE SPOTS AND CONFLICTS AROUND THE WORLD INCLUDING NORTH KOREA RUSSIA AND THE PERSIAN GULF REMIND US THAT THE END OF THE COLD WAR DIDN'T SPELL THE END OF THREATS TO AMERICAN INTERESTS THE QUESTION IS WHETHER WE HAVE THE RIGHT DEFENSE STRATEGY TO DEFEND OUR INTERESTS IT ALSO IS A DEBATE ABOUT HOW WE RECONCILE THE COMPETING DEMANDS OF AMERICAN FOREIGN POLICY LEADERSHIP DOMESTIC INITIATIVES AND DEFICIT REDUCTION WHAT WE ARE PREPARED TO PAY FOR AND WHAT WE WILL HAVE TO SHORTCHANGE THE BOTTOM UP REVIEW YIELDED A DEFENSE STRATEGY THAT PROVIDES THE CLINTON ADMINISTRATION'S ANSWERS IT CLOSELY RESEMBLES THE POST COLD WAR STRATEGY FORMULATED BY THE BUSH ADMINISTRATION ENSURING THE ABILITY TO FIGHT AND WIN TWO NEARLY SIMULTANEOUS CONFLICTS IN THE PERSIAN GULF AND ON THE KOREAN PENINSULA THE BOTTOM UP REVIEW RESULTED IN A FORCE STRUCTURE THAT IS A SOMEWHAT SMALLER VERSION OF THE BUSH ADMINISTRATION'S QUOTE BASE FORCE QUOTE BUT IT PROMISED TO DO NEARLY AS MUCH AS ITS PREDECESSOR WHILE SPENDING ABOUT ONE HUNDRED BILLION DOLLARS LESS OVER FIVE YEARS TO ACHIEVE THIS MESSRS ASPIN AND PERRY CUT JUST ABOUT EVERYTHING THERE WAS TO CUT AND PERHAPS MORE WHILE PRESERVING THE FORCE THEY SAID WAS NECESSARY TO EXECUTE THE STRATEGY THEY PROPOSED ANY ADDITIONAL SAVINGS WOULD HAVE TO COME OUT OF FORCE STRUCTURE UNDERMINING THE STRATEGY OR OUT OF READINESS RESULTING IN A HOLLOW FORCE SINCE THE BUSH DEFENSE SPENDING PLAN ITSELF MAY HAVE BEEN SERIOUSLY UNDERFUNDED THE CLINTON PLAN TO DO NEARLY AS MUCH WITH FEWER RESOURCES STRUCK MANY OBSERVERS AS UNREALISTIC AND THAT WAS BEFORE THE FIFTY BILLION DOLLAR GAP MR. PERRY THUS WILL BE PRESENTING A DEFENSE STRATEGY THAT IS DESIGNED TO SUPPORT ACTIVE AMERICAN ENGAGEMENT IN THE WORLD A DEFENSE PROGRAM THAT IS CLOSE TO THE MARGIN OF BEING ABLE TO EXECUTE THE STRATEGY AND A DEFENSE BUDGET THAT PROBABLY CAN'T PAY FOR THE PROGRAM HE ALSO CONFRONTS A DOMESTIC POLITICAL ENVIRONMENT IN WHICH THERE IS LITTLE SUPPORT FOR MAINTAINING CURRENT LEVELS OF DEFENSE SPENDING BUT ONE OBVIOUS RESPONSE TO SCALE BACK OUR DEFENSE STRATEGY BECAUSE WE CANNOT OR WILL NOT PAY FOR IT WOULD HAVE PROFOUND CONSEQUENCES FOR AMERICAN INTERESTS IT WOULD SACRIFICE THE UNIQUE LEADERSHIP ROLE WE PLAY IN THE POST COLD WAR WORLD AND THUS THE OPPORTUNITY TO SHAPE AN INTERNATIONAL ORDER THAT MIGHT AVOID THE KINDS OF CONFLICTS THAT HAVE WRACKED THE TWENTIETH CENTURY IT WOULD ALSO REQUIRE US TO RELY MORE ON FRIENDS AND ALLIES TO HELP DEFEND U. S. INTERESTS WE NO LONGER CAN PROTECT OURSELVES AT PRECISELY THE TIME WHEN OUR WEAKENED LEADERSHIP INCREASES THE RISKS THAT FRIENDS AND ALLIES WILL BE UNWILLING TO SHOULDER THIS BURDEN BUT EVEN WORSE THAN A DECISION TO SCALE BACK OUR DEFENSE STRATEGY WOULD BE TO PRETEND THAT THE PROBLEM DOES NOT EXIST THAT THERE IS NO MISMATCH BETWEEN STRATEGY AND RESOURCES MAINTAINING THAT ILLUSION WILL RESULT IN HOLLOW FORCES THAT ARE NOT READY TO FIGHT WHOSE INADEQUACIES MAY TEMPT WOULD BE AGGRESSORS OVER THE PAST YEAR MR. PERRY HAS STRUGGLED WITH THESE CHALLENGES AS DEPUTY SECRETARY OF DEFENSE NO ONE IS IN A BETTER POSITION TO CONVINCE CONGRESS AND THE AMERICAN PEOPLE THAT THE BOTTOM UP REVIEW CORRECTLY IDENTIFIED THE STRATEGY AND FORCES NEEDED TO DEFEND U. S. INTERESTS LIKEWISE NO ONE IS BETTER QUALIFIED TO EXPLAIN HOW MUCH DEFENSE SPENDING SUCH A STRATEGY REQUIRES BUT ONLY THE PRESIDENT CAN SUCCESSFULLY FIGHT TO WIN CONGRESSIONAL APPROVAL OF HIS OWN DEFENSE BUDGET ONE CAN ONLY HOPE THAT THE PRESIDENT WITH MR. PERRY WILL REASSURE THE AMERICAN PUBLIC AND OUR ALLIES THAT THE U. S. REMAINS COMMITTED TO A STRATEGY A DEFENSE PROGRAM AND A BUDGET THAT WILL PROTECT OUR INTERESTS AND ALLOW US TO PLAY OUR UNIQUE ROLE IN THE POST COLD WAR WORLD MR. KANTER AN ASSOCIATE AT THE FORUM FOR INTERNATIONAL POLICY IN WASHINGTON SERVED AS SPECIAL ASSISTANT TO THE PRESIDENT FOR DEFENSE POLICY AND ARMS CONTROL FROM NINETEEN EIGHTY NINE TO NINETEEN NINETY ONE AMITY SHLAES'S JANUARY EIGHTEENTH EDITORIAL PAGE ESSAY QUOTE DEAR NAOMI WOMEN OPINIONS AND THE PRESS QUOTE SUCCESSFULLY ANSWERED CHARGES BY NAOMI WOLF AND THE WOMAN AS VICTIM FEMINISTS THAT MEN ALONE CONTROL THE WORLD OF OPINION MAKING IT WAS STRAIGHT TO THE POINT AND FUN TO READ OBJECTIVE CRITICS OF THE MEDIA MUST ADMIT THAT THE VOICES OF WOMEN WHO SPEAK WITH AUTHORITY ON A RANGE OF ISSUES ARE NOT ONLY HEARD BUT GROWING IN NUMBER MY ONLY COMPLAINT IS THAT MS. SHLAES OVERLOOKED WHAT IS HAPPENING WITH WOMEN AS OPINION MAKERS DOWN HERE IN TEXAS AT THE DALLAS MORNING NEWS FOR EXAMPLE A NEWSPAPER WITH ENOUGH CLOUT THAT EVEN THE FABLED JAMES CARVILLE CREDITS IT AS ONE OF THE THREE DAILIES HE READ RELIGIOUSLY DURING THE NINETEEN NINETY TWO PRESIDENTIAL CAMPAIGN BOTH THE EDITORIAL PAGE EDITOR AND THE OP ED EDITOR ARE WOMEN EDITORIAL PAGE EDITOR RENA PEDERSON IS ALSO A VICE PRESIDENT OF THE NEWSPAPER AND WRITES A COLUMN WITH AN INTELLECTUAL PERSPECTIVE ON ISSUES FROM NAFTA TO SCOUTING CAROLYN BARTA THE OP ED EDITOR IS A POLITICAL COLUMNIST AND COMMENTATOR WITH A SHARP AND EXPERIENCED EYE WHILE I ADMIRE THE WORK OF THESE TWO IMPORTANT TEXAS OPINION MAKERS I SOMETIMES FIND MYSELF AT ODDS WITH THEM HAPPILY ALWAYS DUE TO THEIR OPINIONS NOT TO THEIR PRECISE NO UTERUS WRITING STYLE I SUPPOSE NAOMI WOLF'S CHARGE OF NO UTERUS WRITING FALLS IN THE SAME CATEGORY AS GLORIA STEINEM'S ACCUSATION THAT THE U. S. SENATOR FROM TEXAS KAY BAILEY HUTCHISON IS A FEMALE IMPERSONATOR OH WELL SO WHAT I SUSPECT THAT NEITHER NAOMI NOR GLORIA WOULD UNDERSTAND TEXAS OR ITS WOMEN BUT THEY CAN'T DENY THAT EXCITING THINGS ARE HAPPENING HERE FOR AND WITH WOMEN OUR GOVERNOR FOR INSTANCE IS ANN RICHARDS ALMOST ALL OF THE TWELVE STATEWIDE OFFICES UP IN THIS YEAR'S ELECTION HAVE WOMEN CANDIDATES AND MOST ARE REPUBLICANS TO THE BEST OF MY KNOWLEDGE ALL OF THEM GET THEIR HAIR DONE AND WEAR LIPSTICK FREE FROM GUILT JUST WANTED TO SAY HOW MUCH I AGREED WITH MS. SHLAES'S DEAR NAOMI COLUMN AND TO THANK HER FOR SAYING SOME OF THE THINGS I WANTED TO SAY IF I HADN'T BEEN TOO LAZY TO SIT DOWN AND WRITE A RESPONSE TO THE WOLF ARTICLE I WAS PARTICULARLY HAPPY TO SEE THE REBUTTAL OF MS. WOLF'S SILLY DISMISSAL OF JEANE KIRKPATRICK BECAUSE MS. KIRKPATRICK WROTE IN AN OBJECTIVE NO UTERUS' STYLE THAT IS UNINFLECTED BY THE EXPERIENCE OF THE FEMALE BODY THAT IS PROBABLY THE CATEGORY SHE WOULD HAVE RESERVED FOR ME AS WELL MS. CHRISTIAN WAS A NINETEEN EIGHTY ONE PULITZER PRIZE WINNER FOR COVERAGE OF CENTRAL AMERICA MS. SHLAES'S PIECE ON NAOMI WOLF WAS REALLY TOO MUCH FOR OUR BUDDING CONSCIOUSNESSES TO BEAR WE EXPECT YOUR EDITORIAL PAGE TO DO BETTER THAN RECYCLE STEREOTYPES SUCH AS WOMEN ARE CIVILIZERS THEY CLICK THE REMOTE CONTROL PAST THE SCREAMERS ON CROSSFIRE BECAUSE THEY FIND THEM UNDIGNIFIED QUOTE DOES THIS MEAN WOMEN ARE TOO FRAGILE AND HIGH MINDED FOR DAILY BUSINESS MS. SHLAES THEN CONTINUES TO GENERALIZE ABOUT THE RECENT PRODUCT OF HUMANITIES DEPARTMENTS OF FANCY UNIVERSITIES WHAT EXACTLY DOES THIS NARROW GROUP WRITE ABOUT THEY WRITE ABOUT SEX ABOUT THEIR WEIGHT ABOUT THEMSELVES AS VICTIMS IF THIS WERE TRUE THEN EDUCATION FOR WOMEN WOULD BE WASTED ASSUMING WOMEN ARE RATIONAL ECONOMIC DECISION MAKERS NONE OF US WOULD HAVE PAID EIGHTY THOUSAND DOLLARS TO TALK ABOUT SEX WEIGHT AND VICTIMIZATION UNFORTUNATELY THIS IS ONE OF THOSE STEREOTYPES THAT DEMEANS ITS USER AND SAYS NOTHING OF SUBSTANCE IF THESE STATEMENTS HAD BEEN MADE ABOUT JEWISH AMERICANS AFRICAN AMERICANS OR ANOTHER MINORITY YOU WOULD HAVE SEEN THEM FOR WHAT THEY ARE MERE CARICATURES OF A DIVERSE GROUP OF PEOPLE MS. SHLAES ALSO SAYS PEOPLE DO NOT CHECK OP ED PIECES TO SEE THE GENDER OF THE WRITER WITH ALL DUE RESPECT IF THAT WERE TRUE NONE OF THIS WOULD BE AN ISSUE WE OURSELVES ALWAYS CHECK THE GENDER OF THE WRITER ALONG WITH THE WRITER'S PROFESSIONAL BACKGROUND NOT TO SEE IF THE PAPER IS MEETING A QUOTA OF WHATEVER GROUP NATURALLY OUR LIVES ARE MUCH TOO BUSY TALKING ABOUT SEX AND WEIGHT FOR THAT BUT SIMPLY TO EVALUATE IN THE ROUGHEST POSSIBLE WAY WHAT SPECIAL INSIGHTS THE WRITER MAY BE BRINGING TO THAT PIECE IN THE SAME WAY PROBABLY EVERY READER OF THIS LETTER HAS CHECKED OR WILL CHECK TO SEE THE GENDER OF THE WRITER OF THIS LETTER AFTER ALL THE READER WHISPERS TO HIMSELF ONLY A WOMAN WOULD OBJECT TO BEING CALLED TOO HIGH MINDED FOR SOMETHING AS EVIL AS OPINING I NOTE THAT IF YOU TAKE A HANDFUL OF OUTSTANDING FEMALE COLUMNISTS SUCH AS MEG GREENFIELD KAREN ELLIOTT HOUSE GEORGETTE GEYER FLORA LEWIS JEANE KIRKPATRICK MS. DREW DOROTHY RABINOWITZ YOURSELF COKIE ROBERTS JANE KRAMER FROM PARIS THOSE TWO NPR LEGAL SMARTIES AND ONE OR TWO OTHERS ALL OF WHOM WERE WRITING AT THE SAME TIME A FEW YEARS AGO YOU COULD NOT POSSIBLY MATCH THEM IN NUMBERS ON THE MALE SIDE IN TERMS OF QUALITY SENSE TOUGHNESS OF MIND ET CETERA ANNE O'HARE MCCORMICK OF THE TIMES AND DOROTHY THOMPSON OF THE HERALD TRIBUNE UNINHIBITED BY UTERUS IN WRITING ON FOREIGN AFFAIRS A HALF CENTURY AGO ATTAINED A STATUS STILL UNEQUALED BY WOMEN JOURNALISTS IN THAT FIELD BLUE CHIP ISSUES LED THE STOCK MARKET HIGHER BOOSTED BY REBOUNDING BOND PRICES AND PROGRAM BUYING THE DOW JONES INDUSTRIAL AVERAGE ROSE TWENTY FIVE POINT EIGHT NINE POINTS OR ZERO POINT SIX SIX PERCENT TO THREE THOUSAND NINE HUNDRED THIRTY ONE POINT NINE TWO SINCE THE FEDERAL RESERVE ANNOUNCED FRIDAY THAT IT WILL TIGHTEN CREDIT CONDITIONS THE INDUSTRIALS HAVE TAKEN BACK ABOUT SIXTY POINTS OF THE NINETY SIX LOST THAT DAY AMONG BIG CYCLICALS ALLIEDSIGNAL ROSE TWO AND ONE HALF TO SEVENTY NINE AND SEVEN EIGHTHS PROCTER AND GAMBLE GAINED TWO AND ONE QUARTER TO FIFTY NINE AND ONE QUARTER AND MCDONALD'S ADDED ONE AND ONE QUARTER TO SIXTY AND THREE EIGHTHS BROADER INDEXES ALSO ROSE THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX MOVED UP ONE POINT SEVEN TWO POINTS OR ZERO POINT THREE SEVEN PERCENT TO FOUR HUNDRED SEVENTY TWO POINT SEVEN SEVEN AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED ZERO POINT NINE FOUR POINTS OR ZERO POINT THREE SIX PERCENT TO TWO HUNDRED SIXTY TWO POINT NINE OH BIG BOARD ADVANCERS LED DECLINERS ONE THOUSAND TWO HUNDRED EIGHTY NINE TO EIGHT HUNDRED FIFTY ON VOLUME OF THREE HUNDRED THIRTY TWO MILLION SIX HUNDRED THOUSAND SHARES UP FROM THREE HUNDRED EIGHTEEN MILLION FORTY THOUSAND SHARES ON TUESDAY THE AVERAGE PRICE PER SHARE ROSE TWELVE CENTS TWO BOUTS OF FUTURES RELATED PROGRAMS ONE YESTERDAY MORNING AND ANOTHER RIGHT BEFORE THE CLOSE AIDED THE ADVANCE IN THE EQUITY MARKET THE NASDAQ COMPOSITE INDEX ROSE WITH THE HELP OF FIRM TECHNOLOGY ISSUES IT JUMPED THREE POINT EIGHT THREE POINTS OR ZERO POINT FOUR NINE PERCENT TO SEVEN HUNDRED EIGHTY SIX POINT FIVE THREE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE FOR A SECOND STRAIGHT DAY GAINING TWO POINT NINE ONE OR ZERO POINT SIX ONE PERCENT TO FOUR HUNDRED EIGHTY POINT FIVE NINE A BETTER THAN EXPECTED JANUARY BOOK TO BILL REPORT RELEASED AFTER THE MARKET CLOSE TUESDAY BOOSTED SOME CHIP MAKERS THE SEMICONDUCTOR INDUSTRY REPORT SHOWS THE RATIO ROSE TO ONE POINT OH SEVEN LAST MONTH FROM ONE POINT OH FOUR IN DECEMBER THAT MEANS THAT FOR THE LATEST MONTH THE INDUSTRY RECEIVED ONE HUNDRED SEVEN DOLLARS OF NEW ORDERS FOR EVERY ONE HUNDRED DOLLARS OF CHIPS SHIPPED AMONG CHIP STOCKS ATMEL NASDAQ ROSE ONE AND SEVEN EIGHTHS TO FORTY TWO AND THREE EIGHTHS INTEL NASDAQ INCHED UP THREE EIGHTHS TO SIXTY THREE AND SEVEN EIGHTHS AND ANALOG DEVICES INCORPORATED GAINED SEVEN EIGHTHS TO TWENTY SEVEN AND THREE EIGHTHS ALSO IN THE TECHNOLOGY GROUP MICROSOFT NASDAQ REDMOND WASHINGTON ROSE SEVEN EIGHTHS TO SEVENTY NINE AND FIVE EIGHTHS WILLIAM GATES THE COMPANY'S CHAIRMAN SAID THE SOFTWARE GIANT COULD DOUBLE ITS REVENUE BY FISCAL NINETEEN NINETY SEVEN COMPAQ COMPUTER MOVED UP TWO AND ONE EIGHTH TO NINETY COMPAQ'S VICE PRESIDENT OF CORPORATE DEVELOPMENT ROBERT W. STEARNS SAID THE HOUSTON COMPANY'S GROWTH PACE IS ON COURSE FOR COMPAQ TO OVERTAKE INTERNATIONAL BUSINESS MACHINES AS WORLD WIDE LEADER IN PERSONAL COMPUTER SHIPMENTS BY NINETEEN NINETY SIX I. B. M. DECLINED ONE HALF TO FIFTY THREE AND ONE EIGHTH COMPUTER SCIENCES EL SEGUNDO CALIFORNIA GAINED TWO TO THIRTY SEVEN AND ONE HALF MERRILL LYNCH NAMED THE COMPUTER BASED SYSTEMS AND COMMUNICATIONS SYSTEMS COMPANY ITS FOCUS ONE STOCK OF THE WEEK C. U. C. INTERNATIONAL A STAMFORD CONNECTICUT PROVIDER OF MEMBERSHIP BASED CONSUMER SERVICES LEAPED UP TWO AND ONE HALF TO THIRTY ONE AND SEVEN EIGHTHS BEAR STEARNS ANALYST STEVE KERNKRAUT UPGRADED THE COMPANY'S SHARES TO QUOTE STRONG BUY QUOTE FROM QUOTE BUY QUOTE A NOTABLE LOSER WAS WMX TECHNOLOGIES AN OAK BROOK ILLINOIS PROVIDER OF SOLID WASTE MANAGEMENT SERVICES WHICH SAGGED THREE AND ONE QUARTER TO TWENTY FIVE AS FOURTH QUARTER EARNINGS SLIPPED TO THIRTY FOUR CENTS A SHARE FROM THIRTY SEVEN CENTS A YEAR EARLIER WALL STREET HAD BEEN EXPECTING EARNINGS OF THIRTY NINE CENTS A SHARE WMX LED THE BIG BOARD'S MOST ACTIVES LIST WITH VOLUME OF FIFTEEN MILLION SHARES ABOVE AVERAGE DAILY TURNOVER OF ONE POINT FIVE MILLION FORD MOTOR FELL ONE TO SIXTY EIGHT AND ONE HALF DESPITE POSTING STELLAR FOURTH QUARTER EARNINGS OF ONE DOLLAR AND THIRTY CENTS A SHARE COMPARED WITH A LOSS OF ONE DOLLAR AND EIGHTY FIVE CENTS A SHARE ON CHARGES ANALYSTS SAID THE MARKET RESPONSE REFLECTS A PERCEPTION THAT THE BIG THREE AUTO MAKERS ARE AMONG THE BIGGEST BENEFICIARIES OF THE REBOUNDING U. S. ECONOMY AND THAT AFTER THE PAST FEW QUARTERS HIGHER THAN EXPECTED EARNINGS HAVE COME TO BE EXPECTED NEW ISSUE ISTITUTO MOBILIARE ITALIANO JUMPED TO TWENTY THREE AND FIVE EIGHTHS FROM ITS OFFERING PRICE OF NINETEEN DOLLARS AND TWENTY FOUR CENTS AN AMERICAN DEPOSITARY RECEIPT YESTERDAY EACH A. D. R. REPRESENTS THREE COMMON SHARES PROCEEDS FROM THE SALE OF THE ROME BASED STATE CONTROLLED MERCHANT BANK AND FINANCIAL SERVICES GROUP ISSUE WILL GO TO ITALY'S TREASURY WESTERN NATIONAL CLIMBED TO THIRTEEN AND THREE EIGHTHS ABOVE ITS INITIAL OFFERING PRICE OF TWELVE DOLLARS A SHARE YESTERDAY THE HOUSTON INSURANCE COMPANY SAID ITS PORTION OF THE NET PROCEEDS WILL BE ABOUT TWENTY ONE POINT FOUR MILLION DOLLARS AND WILL BE USED FOR GENERAL CORPORATE PURPOSES TRADERS SAID INVESTORS TEMPORARILY SHELVED THEIR CONCERNS ABOUT INTEREST RATES WITH THE TREASURY'S LONG BOND JUMPING MORE THAN ONE HALF POINT PUSHING ITS YIELD DOWN TO SIX POINT FOUR OH PERCENT RATES HAD RISEN OVER THE LAST TWO SESSIONS FUELED BY FED CHAIRMAN ALAN GREENSPAN'S ANNOUNCEMENT FRIDAY BONDS WERE HELPED BY A TUMBLE IN CRUDE OIL FUTURES THE SECOND LEG OF THE TREASURY'S QUARTERLY REFUNDING WHERE TEN YEAR NOTES WERE SOLD WENT MUCH AS EXPECTED THIRTY YEAR BONDS WILL BE SOLD TODAY I DIDN'T EXPECT THE STOCK MARKET TO DO SO WELL TODAY SAID BARRY BERMAN HEAD TRADER AT ROBERT W. BAIRD BUT BONDS PUT ON A GOOD PERFORMANCE AND PEOPLE PUT MONEY TO WORK BUT JOSEPH J. MCALINDEN CHIEF STRATEGIST AT DILLON READ SAID STOCKS ARE ENJOYING A NORMAL TECHNICAL BOUNCE FROM FRIDAY'S SHARP SELL OFF THE KEY OVER THE NEXT TWO DAYS IS THAT IF THIS MOMENTUM CONTINUES TO BUILD WE'RE PROBABLY GOING TO RETEST HIGHS MR. MCALINDEN SAID HE VOICED CONCERN THAT BROADER MARKET INDEXES HAVE RISEN TO THE SAME EXTENT AS THE DOW INDUSTRIALS TODAY INVESTORS WILL FOCUS ON THE BOND MARKET AND THE THIRTY YEAR BOND AUCTION BY TOMORROW ALL EYES WILL WATCH FOR THE RELEASE OF JANUARY PRODUCER PRICES THE PRODUCER PRICE INDEX IS AN IMPORTANT INFLATION INDICATOR AND ECONOMISTS ARE PREDICTING IT COULD BE DISAPPOINTING THE LAST TIME I VISITED SAINT PETERSBURG IT WAS STILL LENINGRAD AND I WOULDN'T BE SURPRISED IF A CALL TO SPRUCE UP THE OLD SIGNS BROUGHT OUT LONG LINES OF EAGER VOLUNTEERS EVEN THREE DAYS IN THIS TOWN CAN MAKE YOU HAPPY AND DEPRESSED AT THE SAME TIME JUST NOW I HAVE EATEN A PERFECT BULGARIAN TOMATO PURCHASED AT THE WELL STOCKED INDOOR FARMER'S MARKET NEAR DOSTOEVSKI'S HOUSE IN NINETEEN EIGHTY FOUR THE PLACE DIDN'T EXIST BUT TO MOST SHOPPERS IT'S ABOUT AS REAL AS QUOTE THE INVISIBLE CITY OF KITEZH QUOTE WHICH IS PLAYING AT THE KIROV'S RIMSKY KORSAKOV FESTIVAL FOR RUSSIANS SPENDING ONE QUARTER OF THEIR MONTHLY SALARY ON A KILO OF MEAT THE FIVE HUNDRED RUBLE ABOUT THIRTY CENTS TOMATO IS A FANTASY CAN IT BE THAT MY LIFE UNDER THE COMMUNISTS WAS NORMAL A FRIEND WONDERS SHE ATE MORE BUT STOOD ON LINE A LOT THOSE LINES THAT ONCE CIRCLED RUSSIA DID SEEM A LOT SHORTER AS I WALKED THROUGH TOWN REVISITING SOME OF THE PLACES I REMEMBERED FROM MY LAST TRIP WHEN THIS WAS A POLICE STATE I SAW JUST ONE MILITARY TYPE YAWNING NEAR THE CASUAL CUSTOMS BOOTHS WHERE THE PERPLEXING ENTRY FORM WARNS AGAINST BRINGING IN SLAUGHTERED FOWL AND SURREALISTIC BILLBOARDS WELCOME THE TRAVELER TO A TOWN OF NIGHTCLUBS AND CELLULAR PHONES THE ASTORIA HOTEL THEN MUSTY SURLY RUIN WITH THUGS STATIONED AT THE DOOR TO KEEP LOCALS FROM CONTAMINATING CONTACTS WITH FOREIGNERS HITLER PLANNED TO HOLD HIS VICTORY BANQUET AT THIS LANDMARK AFTER THE SIEGE OF LENINGRAD BUT NEVER GOT TO MAIL THE PRINTED INVITATIONS NOW WOULDN'T WANT TO HIDEOUSLY RENOVATED WITH DECORATIVE DOORMEN IN OPERETTA OUTFITS NOW WELCOMING EVERYBODY PARTICULARLY LOCAL MAFIOSI WITH PORTABLE PHONES TAXI DRIVING RACKETEERS SLEAZY LOOKING BUSINESSMEN NEWLY MINTED PLUTOCRATS SPECULATORS PIMPS AND PROSTITUTES BUT SOME VENERABLE TRADITIONS ARE CAREFULLY PRESERVED THE RECEPTION DESK FOR INSTANCE MAINTAINS FAMED SOVIET ABILITY TO IGNORE LARGE PEOPLE LOOMING OVER THEM ROOM YOU WANT ROOM YOU ALREADY HAVE ROOM SHE FINALLY SCOWLED AS I TRIED TO CHANGE FROM A SUICIDAL SINGLE IN THE ANGLETERRE SECTION TO THE LESS UGLY OLDER WING THE MINIBAR OFFERED NO SOLACE REACHING FOR A LITTLE VODKA BOTTLE I CLUTCHED THIN AIR AT THE DELUXE ASTORIA YOU ARE MEANT TO GO FILL THE MINIBAR YOURSELF NEVSKY PROSPEKT THEN JUST THE ARCHITECTURE GLORIOUS EVEN IN ITS DILAPIDATION REMINDED ONE OF A SHOPPING BOULEVARD ONCE SO GLITTERING GOGOL WROTE A SHORT STORY ABOUT ITS SPARKLING DISPLAYS ELEGANTLY DRESSED WOMEN SPOTLESS PAVEMENT NOW ICE COVERED FUN HOUSE SIDEWALKS INDICATING A SHORTAGE OF STREET CLEANERS AND LIABILITY LAWYERS A BABUSHKA GOES DOWN OUTSIDE A FANCY FUR STORE ONE OF SEVERAL NEW SHOPS BUT THE GENERAL LOOK REMAINS SHABBY WITH A FEW BEGGARS BRAVING TWENTY FIVE BELOW TEMPERATURES AND A STARVING GERMAN SHEPHERD RUNNING CIRCLES IN FRONT OF THE GOLD EDGED ADMIRALTY BUILDING MY FRIEND IS FEEDING NINETEEN STRAYS MOST ABANDONED BY NEWLY IMPOVERISHED OWNERS GOSTINIY DVOR THEN FALLING DOWN ARCADED DEPARTMENT STORE WHERE ONE MADE DESULTORY ATTEMPTS TO SPEND THE RUBLES FOREIGNERS WERE FORCED TO BUY UPON ENTERING THE SOVIET UNION AND COULD NOT TAKE BACK ON PAIN OF DEATH NOW STILL FALLING DOWN BUT JAMMED WITH BOUTIQUES SELLING EVERYTHING FROM BOUCHERON PERFUME CINZANO AND TAMPAX TO BABY CARRIAGES AND COZY ITALIAN BOOTS THE DAYS WHEN RUSSIANS BOUGHT SHOES THAT DIDN'T FIT JUST BECAUSE A TRUCK DROPPED A LOAD ON THE SIDEWALK AND SOMEONE WOULD WANT THEM APPEAR TO BE OVER DOM KNIGI THEN ONCE PICTURESQUE BOOKSTORE OCCUPYING FORMER SINGER SEW ING MACHINE HEADQUARTERS THAT SOMETIMES OFFERED MORE THAN PAUL ROBESON'S MEMOIRS AND THE GRAPES OF WRATH IN THE ENGLISH SECTION NOW DUMBFOUNDING EXCEPTING ONE WELL THUMBED AGATHA CHRISTIE MYSTERY THE PALTRY SELECTION SEEMS CHOSEN BY SOMEONE WITH A DISTURBED SENSE OF HUMOR QUOTE RUSSIA A SURVIVAL GUIDE QUOTE QUOTE ENGLISH FOR PRACTICAL MANAGEMENT QUOTE COULD THIS BE SENT TO THE ASTORIA QUOTE AUTOMOBILIST IN SAINT PETERSBURG QUOTE A CITY WITHOUT MUCH TRAFFIC PARTICULARLY IN THE ARCTIC WINTER WHEN MOST LADAS HIBERNATE AND QUOTE GILBERT AND GEORGE IN MOSCOW QUOTE THE PERFORMANCE ARTISTS WHO WOULD APPRECIATE A CONCEPTUAL MINIBAR I WOULD HAVE THOUGHT IT NOT IMPOSSIBLE TO PROFITABLY IMPORT A FEW CHEAP PAPERBACKS BUT EVEN THE GERMAN SECTION OFFERS JUST ONE HARDBACK OF A JUDITH KRANTZ BODICE RIPPER IN TRANSLATION YELISEYEV'S THEN CALLED GASTRONOM ONE IN SEDUCTIVE SOVIETSPEAK AND FILLED WITH LONG QUEUES THANKS TO STALINIST SYSTEM OF MAKING PEOPLE STAND ON LINE FOR SO LONG THEY WERE TOO BEAT TO REBEL NOW SAME THREE LINES THE MAN BUYING SIX PINEAPPLES FIRST LINES UP TO GET THE SALES TICKET FROM THE WOMAN WHO SELLS FRUIT THEN HE GETS ON A SECOND LINE TO PAY THEN BACK TO THE ORIGINAL LINE TO PICK UP THE PINEAPPLES WAIT EX COMRADES YOU WANT TO SHOUT THINK ABOUT IT INSTALL REGISTERS AT EVERY COUNTER FEWER LINES MORE PROFIT BUT THE DEPRESSING PINEAPPLE PURCHASE IS ONE END RESULT OF DECADES OF SYSTEMATIC MURDER OF THE SMART RUSSIANS KAZAN CATHEDRAL THEN A FAVORITE TOURIST STOP FOR AMERICANS ESCAPING BIBLE BELTERS AT HOME SINCE IT HOUSED THE MUSEUM OF RELIGION AND ATHEISM WITH ITS ENTERTAINING PICTURES OF SAINTS GETTING FRIED VIRGINS CHOPPED TO BITS DECOLLATED MARTYRS AND COPULATING NUNS IN EARLIER TIMES IT WAS HERE BY THE TOMB OF GENERAL KUTUZOV THAT GOGOL'S LARGE WALKING NOSE STOPPED IN TO PRAY NOW NOBODY PRAYS HERE NOT EVEN A NOSE THOUGH THE BUILDING ITSELF HAS UNDERGONE A MIRACULOUS CONVERSION INTO THE MUSEUM OF HISTORY OF WEST EUROPEAN CHRISTIANITY AND THE ORTHODOX CHURCH HOURS SEEM ERRATIC BUT THE NEW SHOW APPARENTLY INCLUDES AT LEAST A FEW FAVORITE TREASURES LIKE THE MANACLES SCREWED ONTO STAKE READY HERETICS NOW VIEWED AS MARTYRS NOT DUPES RESTAURANT THEN MY ONLY MEMORY IS OF WAITERS IN SOME EMPTY HARD TO FIND ESTABLISHMENT HIDDEN BEHIND CHEAP LACE DRAPES DOING THEIR UTMOST TO KEEP US FROM SITTING DOWN AND EATING FOOD THEY WANTED FOR THEMSELVES OR FOR PARTY OFFICIALS WHO COULD CAUSE PAIN AND SUFFERING NOW TASTY RUSSIAN FOOD YOU ARE ALWAYS WELCOME QUOTE THE HEARTY SIGN ON THE NEVSKY IS INVITING BUT I HAD LUNCH PLANS AT A PRIVATELY OWNED RESTAURANT NEAR THE KIROV ONE OF MANY SPRINKLED THROUGHOUT SAINT PETERSBURG A TOUGH TASTY CHUNK OF BEEFSTEAK TOPPED OFF BY AN EGG COST ABOUT TWO DOLLARS BUCKS BUT EVEN HERE IN THIS SELF ENTERPRISING LITTLE PLACE WITH A FULL BAR AND ESPRESSO MACHINE A GROUP OF FOUR WAITED TO BE SEATED BECAUSE THE WAITRESS COULD NOT GRASP PUSHING TOGETHER TWO EMPTY SMALLER TABLES BY CONTRAST JOINT VENTURE RESTAURANTS WHILE BETTER RUN ARE OFTEN WILDLY EXPENSIVE ABOUT SEVENTY DOLLARS FOR A THREE COURSE MEAL AT THE GRAND HOTEL EUROPE KIROV OPERA THEN DOWDY SISTER OF THE FAMED BALLET COMPANY WHICH WAS PRESENTING BEEFY MEN DANCING WITH SWORDS AND FARM EQUIPMENT IN A PUZZLING BALLET UNKNOWN TO THE INTERNATIONAL REPERTORY NOW AN INTERNATIONALLY ACCLAIMED COMPANY FAR ECLIPSING THE KIROV BALLET AS WELL AS THE COLLAPSING BOLSHOI OPERA OR BALLET THANKS TO ITS BANKABLE STAR CONDUCTOR VALERY GERGIEV HIS RIMSKY KORSAKOV FESTIVAL LAST WEEK CONFIRMED THAT WE MUST TAKE A FORGIVING VIEW OF THE MAN WHO WROTE THE FLIGHT OF THE BUMBLEBEE HERMITAGE MUSEUM THEN OVERGROWN CROWDED IMPOSSIBLE TO NAVIGATE MUSEUM WITH ENORMOUS COLLECTION INCLUDING COUNTLESS REMBRANDTS AND TUCKED AWAY ON THE TOP FLOOR IDEOLOGICALLY TAINTED PAINTINGS BY HENRI MATISSE AND VASSILY KANDINSKY APPROPRIATED FROM CAPITALIST COLLECTORS BUT THEN HIDDEN FOR DECADES ONGOING RENOVATIONS UNDER LEGENDARY DIRECTOR BORIS PIOTROVSKIJ CULMINATED IN A TWENTY MILLION DOLLAR RESTORATION OF CATHERINE THE GREAT'S COURT THEATER THE BILL PICKED UP BY MOSCOW NOW NEITHER CROWDED NOR SUBSIDIZED ATTENDANCE HOVERS AT TWO POINT FIVE MILLION DOWN A MILLION LITTLE TRAVEL FROM THE REPUBLICS MOSCOW PAYS SALARIES LEAVING DIRECTOR MIKHAIL PIOTROVSKIJ SON OF BORIS TO FORGE ALLIANCES WITH UNESCO AND CORPORATE SPONSORS LIKE COCA COLA COMPANY TO SHORE UP THE WATERLOGGED PALACE'S FOUNDATIONS CREATE LABS NEW GALLERIES ENGLISH LABELS ARE ON THE WAY GRAND HOTEL EUROPE THEN ART NOUVEAU WRECK READY TO TOPPLE ANY MINUTE NOW LAVISHLY RESTORED AND MODERNIZED BY A JOINT VENTURE INCLUDING THE CITY OF SAINT PETERSBURG AND THE SWEDISH RESO HOTELS FIRM WHICH MANAGES THE GRAND EXPENSIVE TWO HUNDRED SEVENTY FIVE DOLLARS FOR A SINGLE BUT THE TWENTY DOLLARS BREAKFAST WITH ALL YOU CAN EAT CAVIAR SERVED IN A LOFTY BANQUET HALL WITH A DAZZLING STAINED GLASS WALL OF APOLLO RACING TOWARDS THE SUN MAKES ME FLEE THE ASTORIA NO REGRETS FAST EFFICIENT SERVICE GOOD FOOD HEALTH CLUB CHEERFUL ROOM C. N. N. MINIBAR STOCKED COULD RESO BE ASKED TO RUN RUSSIA TODAY THE SENATE BANKING COMMITTEE WILL VOTE ON RICKI TIGERT AS HEAD OF THE F. D. I. C. SHE HAVING AGREED TO RECUSE HERSELF FROM ISSUES INVOLVING THE CLINTONS AND WHITEWATER LET US ALL PAUSE TO SEE WHO IS RUNNING THE REST OF THE BANK REGULATORY APPARATUS WHY DEPUTY TREASURY SECRETARY ROGER ALTMAN A PRESIDENTIAL APPOINTEE AS WELL AS GEORGETOWN FRIEND IS RUNNING THE OSTENSIBLY INDEPENDENT RESOLUTION TRUST CORPORATION AND EUGENE LUDWIG ANOTHER COLLEGE BUDDY OF BILL HAS BEEN INSTALLED AS COMPTROLLER OF THE CURRENCY WHY THE FOBS ARE TAKING OVER FINANCIAL REGULATION LOCK STOCK AND BARREL THEY HAVEN'T QUITE GOT THE FEDERAL RESERVE YET BUT THEY HAVE A REGULATORY REFORM PROPOSAL THAT WOULD TAKE CARE OF THAT THE CLINTON FOLKS AREN'T CONTENT TO RELEGATE CRONIES AND PALS TO HARMLESS BACKWATERS LIKE COMMERCE OR POSTMASTER GENERAL OR THE ALTER EGO OF A PRESIDENTIAL COUNSELOR THEY LEARNED BACK IN ARKANSAS THAT IT WAS CONVENIENT TO HAVE A BEVERLY BASSETT SCHAFFER SENDING QUOTE DEAR HILLARY QUOTE LETTERS WAVING THROUGH A NEW CAPITALIZATION PLAN FOR A FINANCIAL INSTITUTION WE'RE GLAD TO SEE THAT A COUPLE OF COURAGEOUS REPUBLICANS ARE BLOWING THE WHISTLE NORTH CAROLINA'S SENATOR LAUCH FAIRCLOTH UNLIKE SOME OF HIS COLLEAGUES ON DON RIEGLE'S BANKING COMMITTEE ISN'T WILLING TO LET THE MATTER DROP WITH MS. TIGERT'S RECUSAL IN THE F. D. I. C. NOMINEE'S FIRST APPEARANCE BEFORE THE COMMITTEE THE SENATOR RAISED THE ISSUE OF HOW SOMEONE WHO SAYS SHE'S KNOWN THE CLINTONS FOR EIGHT YEARS AND BEEN A RENAISSANCE WEEKEND REGULAR COULD CONVINCINGLY HEAD AN AGENCY WITH AN ACTIVE INVESTIGATION OF THE MADISON S. AND L. COLLAPSE MS. TIGERT WEASLED BUT LATER SENT SENATOR FAIRCLOTH A RECUSAL STATEMENT WHICH SHE SAID WAS WRITTEN AFTER CONSULTING F. D. I. C.'S ETHICS OFFICE SHE PROMISED SHE'LL RECUSE HERSELF FROM MATTERS CONCERNING PRESIDENT OR MRS. CLINTON IN THEIR PERSONAL CAPACITIES WHILE CONSOLING MS. TIGERT ON THE UNFORTUNATE FATE SURROUNDING HER NOMINATION SENATOR FAIRCLOTH IS NOW WONDERING ABOUT THE CAVEAT PERSONAL DOES THAT REMIND YOU OF DIDN'T INHALE OR NO PRICE CONTROLS SENATOR FAIRCLOTH NOW WANTS MS. TIGERT TO EXPAND YOUR RECUSAL FROM MATTERS INVOLVING THE PERSONAL ACTIVITIES OF PRESIDENT AND MRS. CLINTON TO INCLUDE THEIR PUBLIC ACTIVITIES MORE POINTEDLY HE ASKS WILL YOU RECUSE YOURSELF FROM MATTERS CONCERNING WEBSTER HUBBELL VINCENT FOSTER DAN LASATER FROST AND COMPANY MADISON GUARANTY SAVINGS AND LOAN THE WORTHEN BANK CORPORATION AND ONWARD THROUGH ALL THE FINANCIAL INSTITUTIONS NOW RUNNING UNDER THE WHITEWATER FLAG HOW DID WE END UP WITH AN F. D. I. C. HEAD GOING IN RECUSING HERSELF FROM THE AGENCY'S MOST SENSITIVE BUSINESS MEANWHILE REPRESENTATIVE JIM LEACH IS WONDERING ABOUT DEPUTY TREASURY SECRETARY SLASH INTERIM R. T. C. C. E. O. ROGER ALTMAN THE CONGRESSMAN WROTE LAST WEEK ALSO SEEKING RECUSAL COMMITMENTS IN MATTERS INVOLVING THE R. T. C.'S INVESTIGATION OF MADISON'S COLLAPSE AND RELATIONSHIP TO WHITEWATER MR. LEACH'S TONE IS CORDIAL BUT HE THINKS THE INHERENT CONFLICTS NEED TO BE FACED QUOTE I HAVE HIGH REGARD FOR YOUR PERSONAL INTEGRITY BUT AS YOU KNOW FROM THE BEGINNING IT HAS BEEN AN AWKWARD SITUATION TO HAVE A PRESIDENTIALLY APPOINTED AND CONFIRMED OFFICER OF THE TREASURY DEPARTMENT ALSO HEAD AN INDEPENDENT FEDERAL AGENCY THE R. T. C. WHEN THIS PROSPECT WAS FIRST SUGGESTED AT THE BEGINNING OF THE CLINTON ADMINISTRATION IT DID NOT STRIKE THE MINORITY AS OVERLY UNREASONABLE FOR A MONTH OR TWO GIVEN THE FACT THAT NO R. T. C. HEAD HAD BEEN SELECTED HOWEVER IT HAS BEEN OVER A YEAR SINCE THE ADMINISTRATION HAS BEEN IN OFFICE AND IT CAN ONLY BE DESCRIBED AS STRUCTURALLY UNSEEMLY FOR A POLITICAL APPOINTEE OF AN EXECUTIVE BRANCH DEPARTMENT TO MAKE WHAT ARE IN EFFECT LAW ENFORCEMENT DECISIONS FOR AN INDEPENDENT FEDERAL AGENCY AS THEY MAY TOUCH UPON THE PRESIDENT FINALLY WE HAVE MR. LUDWIG APPOINTED BY MR. CLINTON TO HEAD THE COMPTROLLER'S OFFICE WHICH REGULATES AND EXAMINES NATIONAL BANKS THEY ATTENDED OXFORD AND YALE TOGETHER AND REMAIN CLOSE JUST HOW CLOSE THE AMERICAN BANKER DESCRIBED IN ITS JANUARY THIRTY FIRST EDITION REPORTING ON A VIDEOTAPE TAKEN AT A RENAISSANCE WEEKEND BY SOMEONE FROM SATURDAY NIGHT LIVE WHO WAS ALSO THERE THE TAPE FEATURED MR. CLINTON BUT IT WAS HARD TO MISS MR. LUDWIG IN A BRIGHT BLUE SWEATER AND WHITE SHORTS ALMOST EVERY SHOT OF THE PRESIDENT SHOWED THE BEAMING COMPTROLLER AT HIS SHOULDER SO WE HAVE THREE FRIENDS OF BILL OR HILLARY CALLING SIGNALS AMID A BLIZZARD OF RECUSALS AT THREE TRADITIONALLY INDEPENDENT BANK REGULATORY AGENCIES SURELY BY NOW ENOUGH IS KNOWN OF THE CLINTON POLITICAL MORES TO AGREE THAT WE'RE PAST THE POINT OF SIMPLY PASSING ALL THIS THROUGH AS OF NO CONSEQUENCE AFTER THE SAVINGS AND LOAN SCANDAL B. C. C. I. THE KEATING FIVE AND NOW WHATEVER WHITEWATER IS IT OUGHT TO BE AT LEAST CLEAR THAT FEDERAL FINANCIAL REGULATORS SHOULD BE HELD TO A CAESAR'S WIFE STANDARD OF PROPRIETY AND INDEPENDENCE INSTEAD WE GET THIS WE'RE QUITE USED TO THE CLINTON WHITE HOUSE STONEWALLING OR DERIDING ANYONE'S INQUIRIES OR DOUBTS ABOUT ITS BEHAVIOR BUT WE'RE GLAD THAT SENATOR FAIRCLOTH AND REPRESENTATIVE LEACH ARE PERSISTING WITH THEIR QUESTIONS ABOUT THE ADMINISTRATION'S APPOINTMENT PRACTICES AS WE RUN THE NUMBERS RENAISSANCE WEEKEND PLUS WHITEWATER PLUS THE R. T. C. PLUS THE COMPTROLLER PLUS THE F. D. I. C. PLUS REGULATORY INDEPENDENCE DOES NOT COMPUTE IN HIS NINETEEN FIFTY NINE QUOTE TWO CULTURES QUOTE ESSAY C. P. SNOW PORTRAYED SCIENTISTS AS ALTRUISTIC SEEKERS OF KNOWLEDGE TO ALLEVIATE SUFFERING TODAY THAT IMAGE SEEMS AS DATED AS ATOMIC POWERED AIRPLANES THE NOTION THAT SCIENCE IS DRIVEN BY LOFTY MOTIVES ISN'T MERELY WRONG IT'S IMPRACTICAL BARRY WERTH SUGGESTS IN THE BILLION DOLLAR MOLECULE SIMON AND SCHUSTER FOUR HUNDRED FORTY FIVE PAGES TWENTY FIVE DOLLARS TO THE BOOK'S CENTRAL FIGURE SCIENTIST ENTREPRENEUR JOSHUA BOGER ALTRUISTIC MOTIVES ARE INFINITELY LESS POWERFUL LESS TRUSTWORTHY LESS USEFUL THAN SELFISH ONES SCIENCE IS SO DEMANDING THAT ONLY THOSE DRIVEN BY THE UNALLOYED PURSUIT OF FAME AND FORTUNE CAN HOPE TO SUCCEED THE WORKAHOLIC RESEARCHERS DOCTOR BOGER HIRES AFTER HE LEAVES DRUG INDUSTRY LEADER MERCK AND COMPANY TO FORM VERTEX PHARMACEUTICALS AREN'T OUT TO SAVE THE WORLD BUT TO BASH THEIR COMPETITORS TO THINK THEMSELVES DIVINE TO WIN AND TO AVOID THE TERRIBLE DEATHLY ANGUISH OF LOSING THEIR ARENA IS ONE OF BIOTECHNOLOGY'S HOTTEST AREAS RATIONAL DRUG DESIGN THE METHOD IS BASED ON GROWING KNOWLEDGE OF HOW DISEASES WORK AT THE MOLECULAR LEVEL SCIENTISTS STUDY CULPRIT MOLECULES' STRUCTURES THEN SYNTHESIZE COMPOUNDS WITH JUST THE RIGHT COMPLEMENTARY SHAPES TO STICK TO THEM AND GUM UP THEIR WORKS IT'S A LOT SPEEDIER THAN THE TRADITIONAL SCREENING OF THOUSANDS OF COMPOUNDS WHICH DOCTOR BOGER DISPARAGES AS A MONKEYS WITH TYPEWRITERS APPROACH MR. WERTH'S ENTERTAINING CHRONICLE OF VERTEX'S FIRST FOUR YEARS FOLLOWS DOCTOR BOGER AND HIS THIRTY SOMETHING SCIENTISTS AS THEY SEEK A DRUG TO BLOCK MISDIRECTED IMMUNE SYSTEM ATTACKS IN ORGAN TRANSPLANT REJECTION RHEUMATOID ARTHRITIS AND OTHER DISORDERS THE JEANS CLAD ALCHEMISTS ALSO HOPE TO TURN PAPER INTO GOLD THEIR STOCK OPTIONS WILL BE WORTH MILLIONS IF THEY CAN CAPTURE THE MARKET FOR A BETTER IMMUNE SUPPRESSANT BUT IT TURNS OUT TO BE FAR FROM THE ORDERLY PROCESS DOCTOR BOGER CONJURES UP FOR POTENTIAL INVESTORS EARLY ON HE IS INFURIATED TO LEARN THAT ONE OF VERTEX'S OUTSIDE SCIENTIFIC ADVISERS A HARVARD CHEMIST IS MOUNTING A RIVAL EFFORT TO DRAW UP MOLECULAR BLUEPRINTS FOR THE SAME SORT OF DRUG AND WORSE MAY COLLABORATE WITH COMPETING COMPANIES AFTER MONTHS OF BACK BREAKING LABOR THE VERTEX TEAM IS STUNNED TO DISCOVER THAT THEIR ASSUMPTIONS ABOUT HOW A TARGET MOLECULE FUNCTIONS ARE WRONG AND THAT MUCH OF THEIR WORK IS THEREFORE POTENTIALLY USELESS EVENTUALLY THE COMPANY BOGGED DOWN IN ITS PURSUIT OF AN IMMUNE SUPPRESSANT PLUNGES INTO WORK ON AN AIDS TREATMENT A RESEARCH MINEFIELD DOCTOR BOGER ORIGINALLY SWORE VERTEX WOULDN'T ENTER MR. WERTH MAKES THE MOST OF THESE VICISSITUDES WEAVING THEM INTO A LIVELY NARRATIVE OF CLASHING EGOS GRAND GAMBLES AND FRANTIC SCRAMBLING AFTER RENOWN AND RICHES BOTH THE CORPORATE SCIENTISTS AND THEIR ACADEMIC RIVALS ARE OBSESSED WITH WINNING AND THEY CONTINUALLY FRET THAT THE COMPETITION WILL PUBLISH A CRITICAL FINDING FIRST IN MR. WERTH'S APT ANALOGY THEY ARE QUOTE LIKE THE CREW OF A SUBMARINE IN ENEMY WATERS QUOTE THEY GRIMLY HUNKER DOWN AT THEIR STATIONS SWEATING ANXIOUSLY LISTENING AWAITING THE NEXT DEPTH CHARGE UNLEASHED BY ENEMIES IN TECHNICAL JOURNALS THE SOUL OF VERTEX'S NEW DRUG IS DOCTOR BOGER'S GOOD HUMORED HUBRIS WE REALLY SHOULD BE DOING SOMETHING TOGETHER HE SAYS AFTER A BIG DRUG COMPANY HE COURTED AS A DEEP POCKETS PARTNER SENDS HIM PACKING WE HAVE SIMILAR ARROGANCE LEVELS ARROGANCE DOESN'T BOTHER OR IMPRESS US WE UNDERSTAND ARROGANCE ONE OF THE BOOK'S MOST INTERESTING SUBTEXTS IS THE GAP BETWEEN WALL STREET PERCEPTIONS AND BIOTECH REALITIES INVESTORS DON'T WANT TO HEAR HOW SCIENCE REALLY PROCEEDS JERKING IN FITS AND STARTS DOWN COUNTLESS BLIND ALLEYS THEY PREFER REASSURING STORIES ABOUT STEADY PROGRESS AND DOCTOR BOGER'S COCKY SELF CONFIDENCE READILY ENABLES HIM TO GIVE THEM THE IMPRESSION OF A SURE THING EVEN AS HIS TOP LIEUTENANT HALF JOKINGLY LABELS VERTEX'S PITCHES BLUE SMOKE AND MIRRORS WHEN VERTEX'S UNDERWRITERS SEEK TO SCALE BACK ITS INITIAL PUBLIC OFFERING BECAUSE OF A SKITTISH MARKET DOCTOR BOGER OVERRULES THEM AND PRESSES HIS OWN BOARD TO BUY ENOUGH VERTEX SHARES TO MAKE THE OFFERING FLY THE ARROGANCE PAYS OFF SINCE GOING PUBLIC AT NINE DOLLARS IN NINETEEN NINETY ONE VERTEX HAS PROSPERED AND BASED LARGELY ON ITS PROMISING AIDS WORK CLOSED YESTERDAY AT EIGHTEEN DOLLARS AND TWENTY FIVE CENTS MR. WERTH BAGS A HOST OF TELLING ANECDOTES IN HIS TREK BEHIND THE SCENES OF THE BIOTECH BUSINESS BUT UNFORTUNATELY HIS BOOK ENDS BEFORE VERTEX REACHES CLINICAL TESTS PERHAPS THE TOUGHEST AND MOST INTERESTING PHASE OF DRUG DEVELOPMENT MR. WERTH DOES TRACK A PROMINENT SURGEON'S CLINICAL WORK WITH A DRUG RELATED TO VERTEX'S PROJECT BUT THE EPISODES SEEM PARTS OF A DIFFERENT BOOK ARTIFICIALLY GRAFTED ONTO THE VERTEX STORY IN THE END MR. WERTH'S INSISTENCE THAT WINNING IS EVERYTHING IN SCIENCE SEEMS TO OVERCORRECT FOR PAST IDEALIZATIONS NO DOUBT SCIENTISTS ARE JUST AS COMPETITIVE AS THE REST OF US BUT SURELY THEIR MOTIVATIONS ALSO ARE AS COMPLEX AS THOSE IN OTHER CALLINGS MR. WERTH'S SCIENTISTS SEEM A LITTLE UNREAL UTTERLY FIXATED ON BASHING THE COMPETITION THEY ARE ALL ANXIOUS WORK AND NO PLAY ISN'T THERE SOMETHING BESIDES THE LURE OF WINNING A BILLION DOLLAR RESEARCH RACE ONE WONDERS THAT EXPLAINS WHY THEY DO IT PERHAPS ANSWERS LIE IN MOTIVES MR. WERTH MINIMIZES SUCH AS CURIOSITY AND COMPASSION MR. STIPP COVERS SCIENCE FOR THE WALL STREET JOURNAL IN BOSTON CIGARETTE SMOKING SIGNIFICANTLY INCREASES A WOMAN'S RISK OF DEVELOPING THE BONE THINNING DISEASE OSTEOPOROSIS ACCORDING TO A STUDY BY DOCTORS IN AUSTRALIA THE RESEARCH CONFIRMS THE FINDINGS OF SEVERAL PREVIOUS STUDIES THAT OVER THE YEARS HAVE LINKED SMOKING AND A POTENTIALLY DANGEROUS REDUCTION IN BONE DENSITY THE REPORT PUBLISHED IN TODAY'S ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE ALSO PROVIDES FURTHER EVIDENCE THAT SMOKING INTERFERES WITH THE HORMONE ESTROGEN WHICH IS VITAL TO BONE FORMATION OSTEOPOROSIS AFFECTS ABOUT TWENTY FIVE MILLION AGING WOMEN IN THE UNITED STATES AND CAUSES ABOUT ONE POINT THREE MILLION FRACTURES EVERY YEAR MOSTLY OF THE HIPS WRISTS AND SPINE PUBLIC HEALTH OFFICIALS PUT COSTS OF TREATING THE DISEASE AT ABOUT TEN BILLION DOLLARS ANNUALLY WOMEN ARE BEING ENCOURAGED TO PREVENT THE DISEASE BY INCREASING THEIR CONSUMPTION OF THE BONE BUILDING MINERAL CALCIUM BY TAKING ESTROGEN SUPPLEMENTS AFTER MENOPAUSE WHEN NATURAL ESTROGEN LEVELS DECLINE AND BY NOT SMOKING THE LATEST STUDY BY EGO SEEMAN AND JOHN LLEWELYN HOOPER AT THE UNIVERSITY OF MELBOURNE STUDIED BONE DENSITY AMONG FORTY ONE PAIRS OF MOSTLY MIDDLE AGED AND ELDERLY FEMALE TWINS IN WHICH ONE SISTER SMOKED AND THE OTHER DIDN'T OR IN WHICH ONE SIBLING SMOKED MUCH MORE THAN THE OTHER THE AUSTRALIAN RESEARCHERS FOUND THAT WOMEN WHO SMOKED THE EQUIVALENT OF ONE PACK A DAY FOR TEN YEARS ON AVERAGE HAD A ONE PERCENT OR TWO PERCENT DECREASE IN BONE DENSITY AS COMPARED TO WOMEN WHO NEVER SMOKED OR SMOKED LITTLE OVER FOUR OR FIVE DECADES THIS DIFFERENCE CAN PUT A WOMAN AT SHARPLY HIGHER RISK OF OSTEOPOROSIS THE RESEARCHERS SAID IN FACT WHERE ONE TWIN SMOKED SIGNIFICANTLY MORE OVER TIME THAN THE OTHER TWIN THE RESEARCHERS FOUND A FIVE PERCENT TO TEN PERCENT REDUCTION IN BONE DENSITY ENOUGH BONE LOSS TO SHARPLY RAISE THE RISK OF A FRACTURE THE RESEARCHERS SAID THIS DIFFERENCE REMAINED THE SAME EVEN WHEN THEY ACCOUNTED FOR DIFFERENCES IN A WIDE RANGE OF LIFESTYLES AND ESTROGEN USE THE RESEARCHERS SAID THE FINDINGS ARE ESPECIALLY TROUBLING BECAUSE OF A RISE IN SMOKING AMONG YOUNG WOMEN RECENT SURVEYS HAVE FOUND THAT TWENTY FIVE PERCENT OF AMERICAN WOMEN SMOKE QUOTE THIS STUDY SUGGESTS THAT BY THE EARLY TWENTY FIRST CENTURY THERE WILL BE AN INCREASE IN FRACTURES ATTRIBUTABLE TO SMOKING QUOTE THE RESEARCHERS SAID RECOGNITION OF THESE CONSEQUENCES FOR OSTEOPOROSIS MAY HELP DISSUADE WOMEN FROM TAKING UP OR CONTINUING TO USE TOBACCO IN AN EDITORIAL ACCOMPANYING THE STUDY CHARLES W. SLEMENDA OF THE UNIVERSITY OF INDIANA SCHOOL OF MEDICINE IN INDIANAPOLIS SAID THAT PHYSICIANS SHOULD MENTION THE DECREASED BONE DENSITY AND INCREASED RISK OF FRACTURES WHEN THEY COUNSEL PATIENTS ABOUT SMOKING CESSATION JAPAN'S MORIHIRO HOSOKAWA MAY BE SUBLIMELY POPULAR AT HOME BUT HIS VISIT TO WASHINGTON TOMORROW HAS BEEN PRECEDED BY A GREAT DEAL OF UNFRIENDLY BLUSTER FROM THE WHITE HOUSE YES EVERYBODY AGREES THAT IT WOULD BE A GOOD THING IF JAPAN WERE MORE OPEN TO IMPORTS NOT THE LEAST OF THE BENEFICIARIES WOULD BE JAPAN'S OWN CONSUMERS BUT MR. HOSOKAWA IS ATTACKING THIS PROBLEM AT ITS ROOTS WITH HIS RADICAL REFORM OF JAPAN'S ONE PARTY TECHNOCRACY WHY DO THE CLINTONITES SEEM SO DETERMINED TO SCREW THINGS UP LIKE AN INTRUDER AT A FAMILY QUARREL THE CLINTON ADMINISTRATION HAS JUMPED INTO TOKYO'S DOMESTIC FRAY AND TRIED TO PRESSURE MR. HOSOKAWA INTO ENDORSING QUOTE NUMERICAL TARGETS QUOTE THESE WOULD REQUIRE JAPAN TO BUY FIXED AMOUNTS OF PRODUCTS FROM FAVORED U. S. INDUSTRIES WHETHER JAPANESE CONSUMERS WANT THEM OR NOT RISING UP TO REPEL THIS NONSENSE IS THE MINISTRY OF FINANCE THE SAME MANDARINS AND TECHNOCRATS WHO'VE BEEN STONEWALLING MR. HOSOKAWA'S EFFORTS TO CUT TAXES AND DEREGULATE JAPAN'S ECONOMY HARD TO BELIEVE BUT WASHINGTON HAS CREATED AN OPENING FOR THE BUREAUCRACY TO POSE AS CHAMPIONS OF FREE TRADE AND CONSUMER SOVEREIGNTY THAT USED TO BE AMERICA'S JOB THOUGH NOW WASHINGTON SOUNDS LIKE IT WANTS TO RESURRECT COMECON THE OLD AND HAPLESS QUOTA BASED SOVIET TRADING SYSTEM WITH THE POLITICAL STAKES IN TOKYO SO HIGH IT WOULD BE GOOD TO HAVE SOME CLARITY ABOUT THE DIFFERENCE BETWEEN THE GOOD GUYS AND THE BAD GUYS ON WHOSE MYOPIC ADVICE HAVE THE CLINTONITES BEEN WADING AROUND AND MUDDYING UP THE BATTLE LINES WALTER MONDALE THE U. S. AMBASSADOR HAS BEEN PROVIDING SAGE GUIDANCE FROM TOKYO ON THE SIGNIFICANCE OF THE CHANGES THERE BUT HIS VOICE DOESN'T CARRY FAR ENOUGH TO DROWN OUT COMMERCE SECRETARY RON BROWN AND TRADE REPRESENTATIVE MICKEY KANTOR WHO ARE APPARENTLY CALLING THE SHOTS THEY'RE A COUPLE OF CAREER WASHINGTON FIXERS AND IT SHOWS THE NUMERICAL TARGETS THEY'VE BEEN ADVOCATING AMOUNT TO LITTLE MORE THAN A MECHANISM FOR FUNNELING JAPANESE PORK TO THEIR FUTURE LOBBYING CLIENTS PARTICULARLY SILICON VALLEY AND THE BIG U. S. CONSTRUCTION COMPANIES AT THIS POINT CAN THESE PEOPLE EVEN DISTINGUISH BETWEEN WHAT THEY DID BEFORE AS LOBBYISTS AND WHAT THEY'RE SUPPOSED TO DO NOW AS POLICY MAKERS MR. CLINTON CAMPAIGNED ON THE THEME THAT GEORGE BUSH TOOK TOO MANY TRIPS AS IF FOREIGN POLICY WERE AN EFFETE PASTIME OF THE OVERBRED LEFT TO FOLLOW ITS OWN INSTINCTS THE CLINTON MACHINE STILL TREATS FOREIGN POLICY AS AN APPENDAGE OF DOMESTIC CONSTITUENCY POLITICS POLICY TOWARD JAPAN HAS BEEN FOLLOWING THE RAILS LAID DOWN DURING THE CAMPAIGN WHEN THE IDEA WAS TO ROUSE VOTERS IN THE MIDWEST WITH A LOT OF JABBER ABOUT GETTING TOUGH ONE OF THE WORLD'S PREMIER ECONOMIC RELATIONSHIPS DESERVES BETTER AND WE HOPE MR. CLINTON WILL USE THE SUMMIT TO SET A NEW COURSE ONCE ENGAGED HIS INSTINCTS OFTEN ARE GOOD HE CAME BELATEDLY TO THE NORTH AMERICAN FREE TRADE AGREEMENT FIGHT WON AN IMPORTANT SYMBOLIC VICTORY AND NOW PREACHES FREE TRADE FOR THE WESTERN HEMISPHERE NEXT MONTH HE PLANS TO INVITE ALL THE EMERGING DEMOCRACIES OF LATIN AMERICA INTO THE NAFTA CLUB IN HIS OWN WAY MR. HOSOKAWA IS PART OF THE GLOBAL MOVE TOWARD MORE FREEDOM AND DEMOCRACY NO DOUBT THAT'S WHY HIS POPULARITY RATINGS ARE OFF THE CHART OF COURSE JAPAN IS NO CHILE OR ARGENTINA AND EVEN THE CLINTON ADMINISTRATION'S CLUMSY MEDDLING PROBABLY CAN'T KNOCK THIS BULLET TRAIN OFF THE TRACK BUT IN THE BATTLE FOR JAPAN'S FUTURE WASHINGTON OUGHT TO BE STANDING SQUARELY WITH MR. HOSOKAWA INSTEAD OF TRYING TO SHAKE HIM DOWN FOR PIPSQUEAK TRADE CONCESSIONS SEVERAL SMALL BUSINESS AND ENVIRONMENTAL GROUPS TODAY WILL JOINTLY RECOMMEND SETTING TIME LIMITS ON THE LIABILITIES OF SMALL COMPANIES TO PAY CLEANUP COSTS AT TOXIC WASTE SITES THE RECOMMENDATIONS WOULD CUT THE LONG PERIOD OF UNCERTAINTY THAT SMALL BUSINESSES NOW FACE AS GOVERNMENT REGULATORS DETERMINE RESPONSIBILITY FOR TOXIC WASTE SITE CLEANUPS THE GROUPS MAKING THE PROPOSAL SAY THEY EXPECT CONGRESS AND THE CLINTON ADMINISTRATION TO SUPPORT IT IN A LETTER TO PRESIDENT CLINTON THE GROUPS WILL PROPOSE GIVING THE GOVERNMENT STRICT DEADLINES FOR DETERMINING A SMALL COMPANY'S SHARE OF THE CLEANUP COSTS AT A SITE GOVERNED BY THE FEDERAL SUPERFUND LAW UNDER THE PROPOSAL A COMPANY THAT CONTRIBUTED LITTLE TO A TOXIC WASTE SITE WOULD BE RELEASED FROM ITS CLEANUP COSTS IF FEDERAL OFFICIALS TOOK MORE THAN TEN MONTHS TO DETERMINE ITS SHARE OF THOSE COSTS CURRENTLY IT CAN TAKE FIVE TO SEVEN YEARS TO DETERMINE RESPONSIBILITY THE GROUPS WILL GIVE DETAILS ABOUT THEIR RECOMMENDATIONS TODAY AT A HEARING BEFORE THE HOUSE ENERGY AND COMMERCE COMMITTEE'S SUBCOMMITTEE ON HAZARDOUS WASTES THE SUGGESTED SAFEGUARDS WOULD BE ADDED TO SUPERFUND REFORMS RECENTLY PROPOSED BY THE ADMINISTRATION AND BY THE NATIONAL COMMISSION ON SUPERFUND A COALITION OF TWENTY SIX REPRESENTATIVES FROM BUSINESS ENVIRONMENTAL AND COMMUNITY GROUPS THE HEART OF THOSE SUGGESTED REFORMS IS A NONJUDICIAL ARBITRATION PROCESS THAT WOULD REMOVE SUPERFUND DISPUTES FROM THE COURTS SUPERFUND POSES BIG PROBLEMS FOR SMALL COMPANIES ALTHOUGH SMALL CONCERNS USUALLY CONTRIBUTED LITTLE TO THE WASTE SITES IN QUESTION THEY HAVE OFTEN BECOME THE TARGET OF LAWSUITS BY BIG COMPANIES SEEKING TO CUT THEIR CLEANUP COSTS BY COLLECTING FROM OTHER BUSINESSES THAT USED THE SAME SITES DEFENSE AGAINST THESE SO CALLED QUOTE THIRD PARTY SUITS QUOTE HAS CREATED HEAVY LEGAL EXPENSES FOR MANY SMALL COMPANIES THE UNRESOLVED LIABILITY OR THE CLEANUP HAVE ALSO MADE IT HARDER FOR SOME TO OBTAIN CREDIT THE SMALL BUSINESS AND ENVIRONMENTAL CAMPS SAY THEY FOUND COMMON GROUND ON THE ISSUE BECAUSE BOTH WANT TO WIN REFORM OF THE SUPERFUND LAW THIS YEAR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE NATION'S LARGEST SMALL BUSINESS ORGANIZATION THE SMALL BUSINESS LEGISLATIVE COUNCIL AND THE PRINTING INDUSTRIES OF AMERICA SIGNED THE LETTER TO MR. CLINTON ALONG WITH THE ENVIRONMENTAL DEFENSE FUND THE NATURAL RESOURCES DEFENSE FUND AND THE SIERRA CLUB SMALL BUSINESS ADVOCATES AND ENVIRONMENTALISTS ARE UNLIKELY ALLIES WHO FREQUENTLY HAVE DISAGREED ON REGULATORY ISSUES BUT THE LETTER TO THE PRESIDENT REFLECTS THEIR COMBINED INTERESTS SMALL BUSINESSES ARE FULLY PREPARED TO CARRY THEIR SHARE OF RESPONSIBILITY FOR TOXIC WASTE CLEANUP IF THE GOVERNMENT CAN CORRECT PROBLEMS WITH THE CURRENT PROGRAM IT SAYS THE LETTER ALSO SAYS THE ENVIRONMENTAL COMMUNITY RECOGNIZES THAT MANY SMALL BUSINESSES FACE UNNECESSARY BURDENS UNDER THE CURRENT SYSTEM ONE OF THE KEYS TO GETTING THIS GOING WAS THAT THE SMALL BUSINESS COMMUNITY WASN'T TELLING US THEIR MEMBERS WANTED TO WALK AWAY FROM THEIR CLEANUP RESPONSIBILITIES SAID WILLIAM ROBERTS LEGISLATIVE DIRECTOR FOR THE ENVIRONMENTAL DEFENSE FUND THIS AGREEMENT LEAVES IN PLACE THE BASIC STRUCTURE OF LIABILITY BUT GETS RID OF A ONE SIZE FITS ALL WAY OF IMPLEMENTING IT THE PROPOSALS IF ADOPTED WOULD IMPROVE THE SYSTEM A GREAT DEAL FOR THE MAJORITY OF OUR MEMBERS SAID HARRIET JAMES THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS'S LOBBYIST FOR ENVIRONMENTAL ISSUES THE RECOMMENDATIONS ARE AIMED AT COMPANIES WITH ONE HUNDRED OR FEWER EMPLOYEES BUT WOULD EXCLUDE SMALL COMPANIES FOUND TO BE RESPONSIBLE FOR SIGNIFICANT AMOUNTS OF CONTAMINATION AT A SITE TYPICALLY SMALL BUSINESSES SUCH AS AUTO REPAIR SHOPS TIRE DEALERS PRINTERS AND DRY CLEANERS HAVE BEEN AFFECTED BY THE SUPERFUND LAW THE GROUPS SUGGEST REQUIRING FEDERAL OFFICIALS TO FOLLOW A SPECIFIC TIMETABLE FOR DETERMINING THE COSTS SMALL COMPANIES MUST PAY UNDER SUPERFUND UNDER THE PROPOSED SYSTEM SMALL COMPANIES WOULD PAY LESS MONEY IF THE WHOLE PROCESS TAKES LONGER THAN SIX MONTHS IF IT TAKES LONGER THAN TEN MONTHS THEY WOULD PAY NOTHING AT ALL ACCORDING TO THE SMALL BUSINESS SETTLEMENT PROCEDURES ALREADY PROPOSED BY THE ADMINISTRATION SMALL COMPANIES WOULD PAY THEIR ESTIMATED CLEANUP COSTS PLUS A PREMIUM PAYMENT REFLECTING THE FACT THAT THE ESTIMATE MIGHT BE TOO LOW UNDER THE RECOMMENDED TIMETABLE IF THE GOVERNMENT TOOK EIGHT MONTHS TO DETERMINE A COMPANY'S LIABILITY THE SMALL COMPANY WOULDN'T PAY THE PREMIUM IF THE PROCESS EXCEEDS TEN MONTHS THE SMALL COMPANY WOULDN'T HAVE TO PAY ANY CLEANUP COSTS UNLESS IT IS DETERMINED THAT THE DELAY WAS BEYOND THE CONTROL OF THE ENVIRONMENTAL PROTECTION AGENCY THE GROUPS ALSO RECOMMENDED THAT THE GOVERNMENT BE REQUIRED TO CONSIDER A SMALL COMPANY'S ABILITY TO PAY FOR PART OF A TOXIC WASTE CLEANUP AND STILL REMAIN VIABLE THAT PROCESS CURRENTLY IS AN INFORMAL ONE THE GROUPS SAID THE PROVISION WOULD APPLY TO COMPANIES WITH TWENTY OR FEWER WORKERS AND WITH LESS THAN ONE POINT EIGHT MILLION DOLLARS IN ANNUAL REVENUE QUOTE THE IDEA IS THAT A VERY SMALL COMPANY SHOULDN'T HAVE TO HIRE AN ATTORNEY TO DEFEND ITSELF AGAINST THE FEDERAL GOVERNMENT QUOTE SAID BENJAMIN COOPER CHIEF LOBBYIST FOR THE PRINTING INDUSTRIES OF AMERICA OTHER RECOMMENDATIONS THE COALITION SENT TO THE PRESIDENT INCLUDE USING AN ARBITRATION PROCESS TO AVOID YEARS OF COSTLY SUPERFUND LITIGATION LETTING SMALL COMPANIES MAKE SUPERFUND PAYMENTS OVER A PERIOD OF TIME INCLUDING INTEREST PAYMENTS AND SETTING UP A SMALL BUSINESS ASSISTANCE OFFICE AT E. P. A. HEADQUARTERS AND IN EACH REGIONAL OFFICE TO HANDLE SUPERFUND PROBLEMS STEPHEN ESSER CHAIRMAN OF KUTZTOWN PUBLISHING COMPANY IN KUTZTOWN PENNSYLVANIA SAID THE PROPOSALS IF ADOPTED WOULD HELP HIM HE SPENT NEARLY FIVE HUNDRED THOUSAND DOLLARS INCLUDING CLEANUP COSTS AND LEGAL FEES TO SETTLE A THIRD PARTY SUPERFUND SUIT AND SAYS HE HAS RECEIVED A LETTER OF INQUIRY FROM THE E. P. A. ABOUT ANOTHER SITE THE COMMERCIAL PRINTING COMPANY HAS SEVENTY TWO EMPLOYEES AND ABOUT SIX MILLION DOLLARS IN ANNUAL SALES HE SAID THE WASTE SITE HIS COMPANY USED WAS A MUNICIPAL DUMP WHERE ALL THE LOCAL TRASH WAS SENT THERE ARE A LOT OF BUSINESSES OUT THERE JUST TRYING TO DO THE RIGHT THING HE SAID BUT WHAT REALLY TICKS ME OFF OUT OF ALL THE MONEY I SPENT ONLY ABOUT ONE HUNDRED THOUSAND DOLLARS OF IT IS SUPPOSED TO GO FOR THE SITE'S CLEANUP C. B. S. SATURDAY FEBRUARY TWELFTH EIGHT TO ELEVEN P. M. E. S. T. OPENING CEREMONIES FROM LILLEHAMMER NORWAY CONTRARY TO APPEARANCES A GREAT DEAL ELSE WILL BE GOING ON IN LILLEHAMMER BESIDE WOMEN'S FIGURE SKATING AND THE NANCY KERRIGAN DRAMA C. B. S. WILL AIR A TOTAL OF ONE HUNDRED TWENTY HOURS LIVE AND TAPED EVENTS COVERAGE BEGINS SUNDAY FEBRUARY THIRTEENTH NINE A. M. WEEKENDS SATURDAY PROGRAM RUNS FROM ONE TO SIX P. M. AND CONTINUES FROM SEVEN TO NINE P. M. WITH LATE NIGHT WRAP UPS TO FOLLOW SUNDAY PROGRAM RUNS FROM NINE A. M. NOON FOLLOWED BY MIDAFTERNOON COVERAGE TILL SIX P. M. PRIME TIME SHOW RUNS FROM EIGHT TO ELEVEN P. M. FOLLOWED BY WRAP UPS WEEKDAYS COVERAGE INCLUDES TWO HOURS IN THE MORNING SEVEN TO NINE A. M. A PRIME TIME PROGRAM BEGINNING AT EIGHT P. M. TO BE FOLLOWED BY WRAP UPS IN THE LATE HOURS T. N. T. TURNER NETWORK WILL BROADCAST FIVE HOURS OF THE GAMES WEEKDAYS ONLY FROM ONE TO SIX P. M. EXCLUDING MONDAY FEBRUARY TWENTY FIRST PRESIDENT'S DAY WHEN C. B. S. COVERAGE WILL TAKE OVER THE ONE TO SIX P.M SLOT THIS FILM SHOT ON LOCATION IN A LOS ANGELES HOSPITAL ASPIRES TO SERVE AS A TESTAMENT TO CONDITIONS IN EMERGENCY ROOMS AND TO THE LIFE AND DEATH CHOICES CONFRONTING DOCTORS WORKING IN WHAT HAVE COME TO BE KNOWN AS QUOTE WAR ZONES QUOTE THE FIRST HALF HOUR OR MORE IS ALL BATTLEFIELD ATMOSPHERICS AND SO SHRILLY APOCALYPTIC IN TONE IT TAKES PATIENCE TO STAY WITH IT STILL THE SHOW'S VITAL SIGNS BEGIN TO REVIVE SOON ENOUGH WHICH OWES MUCH TO THE PRESENCE OF JOE MANTEGNA GRIM AND SCATHINGLY BELIEVABLE AS AN EMERGENCY ROOM PHYSICIAN WHO MUST MAKE ONE OF THE LIFE OR DEATH CHOICES FOR A PATIENT WITH A CRITICAL HEAD INJURY PAUL DOOLEY IS ALTOGETHER UNSETTLING IN HIS DEAD ON PORTRAYAL OF THE PATIENT IN QUESTION A CITIZEN WHO INSISTS WHILE LYING UNATTENDED IN A CORNER OF THE WAR ZONE ON BEHAVING LIKE A MAN STILL CONNECTED TO CIVILIZATION THERE IS SOME CUMBERSOME SPEECHMAKING AND PALAVER ABOUT POLITICS NONE OF WHICH FORTUNATELY DETRACTS FROM WHAT IS IN THE END POWERFUL DRAMA A YORKSHIRE MILL OWNER'S DAUGHTER ENTERS A CONVENT ONLY TO DISCOVER SIXTEEN YEARS LATER THAT THE GREAT WORLD OUTSIDE HAS A CLAIM ON HER THUS DOES SISTER GABRIEL BECOME ENTANGLED IN A CHAIN OF EVENTS INVOLVING HER BROTHER'S FAMILY THE SURVIVAL OF THE MILL AND TEMPTATIONS OF THE FLESH ALL OF WHICH NATURALLY CALL INTO QUESTION HER SUITABILITY FOR THE CLOISTERED LIFE THIS FOUR PART MASTERPIECE THEATRE PRESENTATION IS BASED ON A NOVEL BY MARCELLE BERNSTEIN WHO SEEMS TO HAVE GONE AROUND THE WORLD INTERVIEWING NUNS INDEED THE PORTRAIT OF LIFE WITHIN THE CONVENT HERE IS SIGNIFICANTLY RICHER AND MORE TELLING THAN THE SCENES OUTSIDE WHICH DOMINATE THE ACTION FOR ALL THAT THIS IS A STURDY TALE MADE ENGROSSING BY KRISTIN SCOTT THOMAS'S DELICATE AND PROBING PERFORMANCE AS THE LUMINOUS SISTER GABRIEL SEAN YOUNG PLAYS A HARD PRESSED T. V. EXECUTIVE WHO HITS ON THE IDEA OF AIRING A LIVE EXECUTION WHILE TIM DALY STARS AS THE EXECUTEE THE FILM HAS EXCITED CHARGES OF SENSATIONALISM IT IS IN FACT A SEND UP COUPLED WITH A PLOT TURNING ON THE QUESTION OF THE DOOMED CON'S GUILT IT WOULD HAVE BEEN MORE ENTERTAINING WITHOUT THE UNDERGRADUATE WIT WHICH LIES HEAVILY OVER IT ESPECIALLY AT THE UNSPEAKABLY SILLY ENDING HERE WE HAVE A DOCUMENTARY ABOUT THE TABLOIDS BOTH T. V. AND PRINT AND ABOUT THE MASS MEDIA GENERALLY AS THEY FOLLOWED THE CASE OF MICHAEL JACKSON VERSUS THE ORTHODONTIST THIS CHAPTER OF FRONTLINE POSITIVELY PALPITATES WITH SELF RIGHTEOUSNESS AS IT CARRIES ON ABOUT THE TERRIBLE TABLOIDS AND HOW THEY FED ON THE JACKSON STORY MEANWHILE OF COURSE FRONTLINE PRODUCERS HAVE CUT THEMSELVES A PIECE OF THE ACTION IN THE GUISE OF MEDIA CRITICISM CORRESPONDENT RICHARD BEN CRAMER MANAGES TO SOUND IN FACT LIKE A QUINTESSENTIAL TABLOID TOUGH WHEN OFFERING THE CONFIDENT IF VAPID OBSERVATION THAT AUSTRALIANS ARE JUST BRITS WITH BAD ACCENTS THE NET EFFECT OF ALL THE SANCTIMONY HERE IS TO MAKE SOME OF THE TABLOID JOURNALISTS ESPECIALLY ONE ENTERPRISING BRITISH CUTTHROAT FROM THE SUN SEEM MODELS OF WHOLESOMENESS MORRISON KNUDSEN CORPORATION BOISE IDAHO ZBIGNIEW BRZEZINSKI SIXTY FIVE YEARS OLD FORMER NATIONAL SECURITY ADVISER TO PRESIDENT JIMMY CARTER WAS ELECTED A DIRECTOR OF THIS ENGINEERING AND CONSTRUCTION CONCERN SUCCEEDING HAROLD ANDERSON DIRECTOR AND CONTRIBUTING EDITOR OF THE OMAHA WORLD HERALD COMPANY WHO RETIRED IN ADDITION STEPHEN HANKS FORTY THREE FORMERLY SENIOR VICE PRESIDENT SECRETARY AND GENERAL COUNSEL WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION IN REGARD TO YOUR JANUARY FIFTH PAGE ONE ARTICLE QUOTE MOTLEY'S CREW A FERVENT LOBBYIST RALLIES SMALL BUSINESS TO BATTLE HEALTH PLAN QUOTE IN THIS STORY OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS YOU LEFT THE IMPRESSION OF A FAT CAT ORGANIZATION WHOSE LOBBYIST USES IT TO PUSH HIS PERSONAL EXTREME RIGHT POSITIONS MANIPULATING THE OPINIONS AND RESPONSES OF N. F. I. B. MEMBERS OUR BUSINESS OF SIXTY FIVE STAFFERS EIGHTY FIVE BEFORE THE BUSH SLASH CLINTON RECESSION HIT US HAS BEEN A MEMBER OF N. F. I. B. FOR ALMOST TWENTY YEARS ALWAYS THE N. F. I. B. APPROACH HAS BEEN TO SOLICIT OUR VIEWS THROUGH THE N. F. I. B. MANDATE REPORT BACK TO US MANDATE RESULTS AND ASK US TO RESPOND TO WASHINGTON ON VARIOUS ISSUES THE POSITIONS N. F. I. B. TAKES COME FROM OUR EXPRESSED OPINIONS WHICH DEVELOP FROM OUR CLOSE PERSONAL INVOLVEMENT IN OUR BUSINESSES WITH OUR STAFFERS WITH OUR OPPRESSIVE BUREAUCRATIC GOVERNMENT WITH REALITY YOU ALSO IMPLY THAT N. F. I. B. HAS MISLED US MEMBERS ON THE HEALTH PLAN ISSUE BY FAILING TO FULLY INFORM US OF AVAILABLE GOVERNMENT SUBSIDIES JOHN MOTLEY THE N. F. I. B. LOBBYIST WHO IS THE SUBJECT OF THE ARTICLE SAID CORRECTLY THAT THE ISSUE IS NOT ONE OF MONEY ALTHOUGH THAT IS EXTREMELY IMPORTANT THE ISSUE IS ONE OF PRINCIPLE THE GOVERNMENT ESPECIALLY THE CLINTON GOVERNMENT WANTS THE POWER OF MORE CONTROL OVER OUR LIVES AND OUR BUSINESSES WE WANT GOVERNMENT OUT OF OUR LIVES AND OUR BUSINESS IN THIS ERA OF POLITICAL CORRECTNESS WHAT ON EARTH IS WRONG WITH SOCIALIZED MEDICINE WHY DOES THE CRY SOCIALISM EVOKE SUCH AN HYSTERICAL REACTION TO ANY HEALTH CARE PROGRAM IN THE U. K. THE SOCIALIST GOVERNMENT AFTER WORLD WAR TWO INTRODUCED NATIONAL HEALTH BETWEEN NINETEEN FORTY SEVEN AND NINETEEN FORTY NINE IT WAS A FANTASTIC BOON PROVIDING THE ENTIRE POPULATION WITH HEALTH CARE FROM CRADLE TO THE GRAVE THE COST WAS THE PURCHASE OF A NATIONAL HEALTH STAMP BY THE EMPLOYER WITH THE EMPLOYEE PAYING FORTY PERCENT OF THE COST TAX DEDUCTIBLE ANY GOVERNMENT THAT ATTEMPTED TO REVOKE THE NATIONAL HEALTH SERVICE ACT WHETHER LABOR OR CONSERVATIVE WOULD HAVE BEEN DOOMED TO POLITICAL OBLIVION MY FATHER A CHRONIC ASTHMATIC SURVIVED DURING THE FORTIES ON SULFA DRUGS UNTIL AN ENGLISH SCIENTIST DISCOVERED PENICILLIN WHICH GAVE HIM A NEW LEASE ON LIFE EVERY YEAR HE HAD FLU OR PNEUMONIA LATER A COLOSTOMY AND VARIOUS OTHER MEDICAL PROBLEMS THE TREATMENT OPERATION ET CETERA COST NOTHING I RAISED FIVE CHILDREN WITH THE USUAL MEDICAL PROBLEMS WITHOUT COST TO ME AS A SELF EMPLOYED PERSON WITH A STAFF OF FIVE I TOO PAID MY EMPLOYEES' HEALTH INSURANCE STAMPS SMALL BUSINESSES SHOULD EMBRACE SOCIALIZED MEDICINE AS A PROTECTION FOR THEMSELVES AND THEIR WORKERS THOSE WHO WANT INSURANCE PROTECTION AND CAN AFFORD TO PAY FOR IT ARE FREE TO DO SO BUT MOST OF US WISH TO BE FREE OF THE FINANCIAL PENALTY THAT IS SUCH A CRUSHING BURDEN JAPAN'S FINANCE MINISTRY PLANS TO BOOST ISSUANCE OF ITS DEBT BY MORE THAN TWENTY PERCENT IN THE NEXT FISCAL YEAR THE MINISTRY ANNOUNCED WEDNESDAY THAT IT WILL BOOST ISSUANCE OF TEN YEAR BONDS IN THE MARKET BY ABOUT THREE POINT TWO TRILLION YEN TWENTY NINE POINT FOUR TWO BILLION DOLLARS AND ISSUANCE IN OTHER MATURITIES BY ABOUT FOUR POINT THREE SIX TRILLION YEN IN THE NEXT FISCAL YEAR WHICH STARTS APRIL FIRST THIS PAST FISCAL YEAR THE MINISTRY HAS ISSUED THREE MONTH AND SIX MONTH TREASURY BILLS AND TWO YEAR FOUR YEAR FIVE YEAR TEN YEAR AND TWENTY YEAR PAPER THE MINISTRY WILL ADD SIX YEAR BONDS NEXT FISCAL YEAR THE SHARP BOOST IN FINANCE MINISTRY DEBT ISSUANCE FOLLOWING THE GOVERNMENT'S DECISION TO FINANCE AT LEAST TEMPORARILY A SIX TRILLION YEN CUT IN TAXES WITH BONDS LOOKS TO BRING TOTAL FLOATATIONS TO A RECORD THIRTY SIX POINT FIVE THREE ONE TRILLION YEN THE MINISTRY AT THIS POINT ESTIMATES ISSUANCE FOR THIS FISCAL YEAR AT TWENTY NINE POINT NINE ONE SIX TRILLION YEN BUT THAT DOESN'T YET INCLUDE FINANCING FOR THE THIRD SUPPLEMENTARY BUDGET DUE OUT THIS WEEK A MINISTRY FINANCING AIDE TOLD REPORTERS THE BURDEN OF FINANCING ON THE MARKET WILL BE INCREASED FURTHER BY A CUTBACK IN PURCHASES BY THE FINANCE MINISTRY'S TRUST FUND BUREAU WHICH PLANS TO SHAVE ITS BUYING BY THREE POINT SIX TRILLION YEN NEXT FISCAL YEAR THE TRUST FUND BUREAU MANAGES MONEY FOR SUCH ARMS OF THE GOVERNMENT AS THE POSTAL MINISTRY'S SAVINGS AND INSURANCE ACCOUNTS AND THE HEALTH AND WELFARE MINISTRY NEW HAMPSHIRE'S ATTORNEY GENERAL JEFFREY R. HOWARD SAID HADCO CORPORATION AGREED TO PAY ONE HUNDRED FIFTY SEVEN THOUSAND DOLLARS IN CONCESSIONS TO SETTLE STATE CLAIMS THAT IT VIOLATED STATE HAZARDOUS WASTE LAWS THE SETTLEMENT FOLLOWS A STATE INVESTIGATION OF A HADCO HAZARDOUS WASTE SPILL AT ITS HUDSON N. H. FACILITY IN MAY NINETEEN EIGHTY NINE IN WHICH AMMONIACAL ETCH SOLUTION SPILLED INTO A STORM DRAIN LEADING TO A TRIBUTARY OF A RIVER ALTHOUGH HADCO CLEANED UP THE SPILL THE STATE FOUND HADCO VIOLATED A NUMBER OF HAZARDOUS WASTE RULES INCLUDING STORAGE DISCHARGE REPORTING AND PERSONNEL TRAINING REQUIREMENTS UNDER THE TERMS OF THE SETTLEMENT UNDER WHICH HADCO ADMITS NO LIABILITY THE COMPANY WILL PAY THIRTY THOUSAND DOLLARS IN CASH TO THE STATE'S HAZARDOUS WASTE CLEANUP FUND AND SPEND AT LEAST ONE HUNDRED TWENTY SIX THOUSAND SEVEN HUNDRED DOLLARS ON POLLUTION PREVENTION PROJECTS OVER THE NEXT YEAR HADCO OFFICIALS WEREN'T AVAILABLE TO COMMENT HADCO IN SALEM N. H. MAKES PRINTED CIRCUIT BOARDS AD MEN MAKE A KILLING AND INCOME'S LABELED BILLING JUST PUT UP FOR REVIEW END UP THE SAME WAY DO MAKE LITTLE WAVES THE DIRECTOR ROGER DONALDSON EXPLAINS THE QUOTE DISTINCT ADVANTAGE QUOTE TO RE MAKING A FILM YOU HAVE A ROUGH BLUEPRINT TO WORK FROM AND WHAT IS GREAT IS THAT YOU CAN RELY UPON THE STRONGEST ELEMENTS OF THE ORIGINAL AND IMPROVE UPON THE WEAKER ONES I WONDER WHICH ELEMENTS OF THE NINETEEN SEVENTY TWO FILM THE GETAWAY HE FELT HE WAS MERELY RELYING ON AND WHICH HE FELT WERE BEING IMPROVED AS HE MADE THE GETAWAY AGAIN HE HAS CERTAINLY RELIED ON THE MEAN AND VIOLENT SPIRIT OF THE ORIGINAL THE IMPROVEMENTS ARE MORE DIFFICULT TO FIND MR. DONALDSON A TALENTED DIRECTOR HAS MADE A FILM THAT MANAGES TO BE EVEN MORE MEAN AND MORE VIOLENT THAN THE ORIGINAL YET MORE WISHY WASHY TOO BOTH MOVIES ARE ABOUT A CRIMINAL NAMED DOC MCCOY WHO GETS SPRUNG FROM JAIL AFTER HIS WIFE CAROL SLEEPS WITH A POWERFUL MAN TO ARRANGE HER HUSBAND'S RELEASE THE HUSBAND'S SUBSEQUENT JEALOUSY LEADS TO THE VIOLENT DEATH OF THE POWERFUL MAN AND TO MANY OTHER KILLINGS THE HUSBAND AND WIFE GET AWAY WITH THEIR LIVES AND WITH THE MONEY THEY'VE STOLEN IN A MAJOR HEIST BOTH FILMS CONTAIN A SUBPLOT ABOUT A SADISTIC KILLER WHO KIDNAPS A MARRIED COUPLE AND HUMILIATES THE MAN BY HAVING GLEEFUL SEXPLAY WITH HIS WIFE IN FRONT OF HIM BOTH MOVIES HAVE STARS WHO WERE OR WOULD BECOME MARRIED TO ONE ANOTHER IN REAL LIFE STEVE MCQUEEN AND ALI MACGRAW THEN ALEC BALDWIN AND KIM BASINGER NOW BOTH MOVIES ARE ALSO BASED ON A NOVEL BY JIM THOMPSON THE WRITER WHO SPECIALIZED IN HARD CYNICAL CRIME STORIES THAT CYNICISM OF DESPAIR WAS CHANGED IN BOTH MOVIES TO THE CYNICISM OF HOLLYWOOD WHICH DICTATES THAT EVEN THE MOST VICIOUS CRIMINALS MUST BE LIKABLE IF THEY ARE THE STARS OF A MOVIE HOWEVER THE NEW VERSION CARRIES THIS PSEUDO PRINCIPLE TO A RIDICULOUS EXTREME DOC NO LONGER SMACKS CAROL AROUND THEY ARE NOW SENSITIVE PEOPLE WHO WANT TO GO STRAIGHT JUST AS SOON AS THEY GET ACROSS THE MEXICAN BORDER WITH THE VAST SUMS OF MONEY THEY'VE STOLEN IN FACT WE ARE MEANT TO BELIEVE THEY ARE ACTUALLY GOOD AFTER ALL THE ONLY PEOPLE THEY KILL AND THEY KILL MANY ARE SCUMBUCKETS WE ARE SUPPOSED TO BELIEVE THIS EVEN AFTER DOC BRUTALLY BEATS UP A SMALL TIME THIEF BECAUSE WHILE HE IS AT WORK BURGLING TRAIN STATION LOCKERS HE STUMBLES ONTO DOC AND CAROL'S BAG OF LOOT SO THE UPDATED DOC AND CAROL ARE IN THE EYES OF THE FILMMAKERS EVEN NICER THAN THEIR FORERUNNERS THIS MORAL UPGRADE IS UNDOUBTEDLY ONE OF THE IMPROVEMENTS MR. DONALDSON REFERRED TO WHAT WERE THE OTHER REFINEMENTS ADDED TO MAKE THIS PICTURE QUOTE ACCEPTABLE QUOTE TODAY IN NINETEEN SEVENTY TWO IT WAS ACCEPTABLE FOR ALI MACGRAW TO BE A BIMBO AND FOR STEVE MCQUEEN TO WHACK HER IN THE FACE WHEN SHE SAID STUPID THINGS IN NINETEEN NINETY FOUR THIS IS NOT ACCEPTABLE CAROL HAS BEEN GIVEN A MUCH BIGGER ROLE SHE IS NOW ASSIGNED TO THE CRUCIAL TASKS OF DRIVING CARS AND KILLING IN NINETEEN SEVENTY TWO BACK WHEN MOVIE DISTRIBUTORS WANTED P. G. RATINGS IT WAS UNACCEPTABLE FOR MOVIE STARS TO HAVE SEX ONSCREEN NOW THANKS TO THE NEW IMPROVED GETAWAY WE DON'T HAVE TO IMAGINE WHAT MR. BALDWIN AND MS. BASINGER DO WITH ONE ANOTHER WHEN THEIR WORKDAY IS DONE IT IS A BUSY MARRIAGE THE SCENT OF GREEN PAPAYA IS WORLDS APART FROM THE GETAWAY IN ALMOST EVERY WAY EXCEPT ONE LIKE ROGER DONALDSON THE DIRECTOR TRAN ANH HUNG HAS A BIG CINEMATIC GIFT BUT HE HAS USED IT TO SEDUCE NOT TO BLUDGEON THE THIRTY TWO YEAR OLD MR. TRAN WHO MOVED TO FRANCE FROM VIETNAM WHEN HE WAS A BOY WANTED TO MAKE A FILM ABOUT HIS BIRTHPLACE THAT WASN'T ABOUT THE VIETNAM WAR HIS EXQUISITE MOVIE ABOUT A LOST VIETNAM SEEMS ESPECIALLY VALUABLE NOW AS COKE AND PEPSI BATTLE MINH CITY AND SAIGON THE SCENT OF GREEN PAPAYA IS ABOUT A BOURGEOIS HOUSEHOLD IN THE SAIGON OF NINETEEN FIFTY ONE AS SEEN THROUGH THE EYES OF A YOUNG GIRL NAMED MUI WHO COMES TO WORK THERE WHEN SHE IS TEN AT FIRST SHE THINKS IT MAY BE PARADISE AS SHE MARVELS AT THE PAPAYA TREE OUT HER WINDOW OR THE STRUGGLE OF AN ANT TO MOVE A CRUMB FROM HERE TO THERE THERE ARE MANY OTHER NATURAL AND MAN MADE WONDERS IN THIS BEAUTIFUL PLACE A MANY TIERED HOUSE SMALL COURTYARDS LUSH TROPICAL PLANTS IT SEEMS PEACEFUL TOO ONLY THE SOUNDS OF BIRDS OF CRICKETS AND THE STRINGED INSTRUMENT THE MAN OF THE HOUSE IS CONSTANTLY PLAYING DISTURB THE QUIET BUT IT SOON BECOMES APPARENT THAT THERE ARE INNER DISTURBANCES UPSTAIRS THE GRANDMOTHER CONSTANTLY PRAYS FOR HER DEAD HUSBAND AND DEAD GRANDCHILD A LITTLE GIRL WHO WOULD BE MUI'S AGE HAD SHE LIVED THE MAN OF THE HOUSE NEVER LEAVES BECAUSE OF THE EVIL HE'S DONE AND THE EVIL HE THINKS HE'S DONE THE LADY OF THE HOUSE SUFFERS BUT IS UNFAILINGLY KIND TO MUI HER YOUNGER SONS REACT TO THE UNSPOKEN TENSION WITH SMALL CRUELTIES TOWARD INSECTS AND SERVANTS WITH SENSUOUS GRACE THE SCENT OF GREEN PAPAYA CAPTURES THIS HOTHOUSE LIFE BOTH THE BEAUTY AND THE ROT WITHIN VIDEO TIP ALEC BALDWIN IS NOT AN IMPROVEMENT OVER STEVE MCQUEEN YOU CAN VERIFY THIS BY WATCHING THE ORIGINAL OF THE GETAWAY IF YOU MUST BUT YOU CAN DO MUCH BETTER STARTING WITH THE ULTIMATE COOL MCQUEEN IN QUOTE THE CINCINNATI KID QUOTE HE COULD BE GLAMOROUS TOO THE THOMAS CROWN AFFAIR HE COULD BE TOUGH BULLITT AND HE WAS A VERY GOOD COWBOY THE MAGNIFICENT SEVEN JOHN SQUIRES FORTY SIX YEAR OLD COFOUNDER EXECUTIVE VICE PRESIDENT AND DIRECTOR OF THIS MAKER OF DISK DRIVES RESIGNED TO PURSUE OTHER INTERESTS MR. SQUIRES HAD BEEN ON SABBATICAL SINCE LAST SUMMER AS GUN SWAP PROGRAMS PROLIFERATE WILL CORPORATE SUPPORT LAST THE SUCCESS OF NEW YORK'S TOYS FOR GUNS EXCHANGE IN DECEMBER PROMPTS A SLEW OF SIMILAR PROGRAMS AIDED BY RETAILERS LIKE TOYS QUOTE R. QUOTE US AND CALDOR AND EVEN THE NEW JERSEY NETS BASKETBALL TEAM THERE'S MORE MILEAGE LEFT IN THIS FORM OF CAUSE ORIENTED MARKETING SAYS GARY STIBEL OF NEW ENGLAND CONSULTING GROUP IN CONNECTICUT HE SAYS MORE MANUFACTURERS WILL GET INVOLVED THEY GENERALLY HELD BACK FROM THE FIRST CROP OF PROGRAMS BECAUSE THEY DON'T READILY HAVE THE CHANNELS FOR MAKING THE SWAPS SUPERMARKET COMPANY GREAT ATLANTIC AND PACIFIC TEA WHICH DONATED TO THE NEW YORK PROGRAM SAYS IT WILL CONSIDER BACKING SWAPS ELSEWHERE IT'S A WAY TO PARTICIPATE IN THE COMMUNITY A SPOKESMAN SAYS OTHERS SEE THE BANDWAGON EVENTUALLY SLOWING POSSIBLY NEXT YEAR BY THEN PROGRAMS WILL BE SPEAKING TO PEOPLE WHO WON'T BE LISTENING SINCE THOSE WILLING TO SWAP WOULD ALREADY HAVE DONE SO MR. STIBEL SAYS MEANWHILE FERNANDO MATEO THE BUSINESSMAN WHO RUNS THE NEW YORK PROGRAM SAYS FUNDING IS RUNNING OUT VIRTUAL BILLBOARDS VIDEO TECHNOLOGY INSERTS SIGNS INTO LIVE SPORTS BROADCASTS THE BALTIMORE ORIOLES WEIGHS PUTTING BILLBOARDS IN SUCH ONCE SACROSANCT SPOTS AS BEHIND HOME PLATE BUT PLAYERS AND FANS IN THE STADIUM WON'T SEE THEM THE SIGNS WOULD BE INSERTED INTO BROADCASTS VIA A VIDEO PROCESSOR LEASED FROM NEW JERSEY'S PRINCETON ELECTRONIC BILLBOARD INCORPORATED THE TECHNOLOGY HASN'T BEEN TESTED ON THE AIR YET AND THE MACHINES WON'T ROLL OFF THE PRODUCTION LINE UNTIL MARCH STILL THE ORIOLES' DAVID COPE THINKS IT'S POSSIBLE THE TECHNOLOGY CAN BE READY BY OPENING DAY WE MIGHT SELL SPOTS FOR HALF INNINGS HE SAYS IT MAY BE QUOTE A NEW AVENUE FOR REVENUE GROWTH QUOTE SAYS JAMES HEALEY OF THE BOSTON RED SOX MEANWHILE BRYAN BURNS OF PARAGON ALLIANCE A NEW YORK CONSULTANT LOOKS AT USING THE TECHNOLOGY FOR A SPORTS BROADCAST FROM ABROAD THE ATTRACTION IT CAN REPLACE FOREIGN SIGNS WITH ONES THAT ARE MORE U. S. ORIENTED U. S. CRAFT COMPANIES SEEK TO CUT A WIDE SWATH OVERSEAS MAKERS OF CRAFT ITEMS LIKE JEWELRY MAKING KITS ARE BUILDING UP THEIR EXPORT BUSINESS EVEN AS U. S. SALES STAY STRONG KENTUCKY'S CERAMICHROME A CERAMIC AND PAINT MAKER SAYS TWENTY FIVE PERCENT OF ITS NINETEEN NINETY THREE SALES WERE MADE OVERSEAS LAST YEAR IT HIRED A MANAGER JUST TO HANDLE SALES TO SPANISH SPEAKING COUNTRIES E. Z. INTERNATIONAL A NEW JERSEY QUILTING KIT SUPPLIER PLANS TO USE MULTILINGUAL PACKAGING THIS YEAR FOR EXPORTS TO EUROPE THE COMPANIES ARE JUMPING AT THE CHANCE TO GRAB FOOTHOLDS IN MARKETS WHERE DEMAND IS RISING AND COMPETITION SCARCE THE MARKET ABROAD HAS TO DO A LOT OF CATCHING UP WITH THE U. S. SAYS AL SEIFERT OF GREENE PLASTICS A RHODE ISLAND BEAD FIRM MIKE HARNETT OF CRAFT TRENDS MAGAZINE NILES ILLINOIS SAYS THE FIRMS ALSO ARE HEDGING THEIR BETS AS U. S. CRAFT RETAILERS CONSOLIDATE HERE YOU'RE PUTTING YOUR FATE IN THE HANDS OF JUST A DOZEN BUYERS HE SAYS THE HOBBY INDUSTRIES OF AMERICA A TRADE GROUP WILL HOLD ITS FIRST OVERSEAS CRAFT SHOW IN THE NETHERLANDS IN NINETEEN NINETY FIVE HOSPITALS ARE HEALTHIER SAYS MODERN HEALTHCARE MAGAZINE IN CHICAGO COMPARING FISCAL NINETEEN NINETY THREE AND NINETEEN NINETY TWO FIGURES OF THREE HUNDRED ELEVEN HOSPITALS IT SAYS THE MEDIAN PROFIT MARGIN ROSE TO FOUR POINT SEVEN SIX PERCENT FROM FOUR POINT FOUR TWO PERCENT DUE PARTLY TO HIGHER REVENUES AND SLOWER GAINS IN EXPENSES STUDENT HEAL THYSELF LEHIGH UNIVERSITY BETHLEHEM PENNSYLVANIA TRIMS HEALTH CENTER COSTS WITH A COMPUTER PROGRAM THAT HELPS STUDENTS TREAT THEMSELVES FOR MINOR AILMENTS LIKE COLDS AND RASHES LEHIGH WHICH PLANS TO SELL THE PROGRAM TO OTHER CAMPUSES SAYS SELF TREATMENT COSTS ONE DOLLAR A STUDENT VERSUS FIFTEEN DOLLARS FOR A VISIT WITH A DOCTOR CORPORATE CUSTOMERS PAID UP FASTER LAST YEAR SAYS MID CONTINENT AGENCIES INCORPORATED AN ILLINOIS COLLECTIONS FIRM IN A POLL OF TWO HUNDRED SEVENTY EIGHT CREDIT MANAGERS THIRTY NINE POINT FOUR PERCENT SAID DAYS SALES OUTSTANDING THE TIME IT TAKES TO COLLECT ON A BILL FELL IN THE LAST HALF OF NINETEEN NINETY THREE FROM A YEAR EARLIER COMPARED WITH TWENTY SEVEN POINT ONE PERCENT WHO SAID THE NUMBER OF DAYS ROSE RADAR DETECTOR BAN FOR TRUCKERS PUTS A BRAKE ON SALES BUT NOT EVERYWHERE IN ONTARIO CALIFORNIA RETAILER TRUCKSTOPS OF AMERICA'S DETECTOR SALES HAVE DRIED UP SINCE THE JANUARY NINETEENTH FEDERAL BAN ON THE GADGETS IN TRUCKS AND OTHER COMMERCIAL VEHICLES THE TRUCK STOP NOW TRIES TO SELL THE DEVICES TO CAR DRIVERS BONNIE AND CLYDE'S C. B. AND STEREO IN DALLAS SAYS SALES WERE HALVED BUT IT'S NOT AS BAD AS WE THOUGHT SAYS SALESMAN PAUL GARZA SOME TRUCKERS ARE GOING TO BUY REGARDLESS INDEED AT TRUCKSTOPS OF AMERICA'S MESQUITE TEXAS OUTLET THE BAN BOOSTED SALES IN PRICIER DETECTORS WITH STEALTH FEATURES THAT MAKE THEM UNDETECTABLE THE STORE USED TO SELL ONE OR TWO A WEEK OF SUCH MODELS SAYS MANAGER DON RIGHTMYER IN THE PAST FEW DAYS IT HAS SOLD SEVERAL TONY MIRABELLI OF DETECTOR MAKER UNIDEN AMERICA IN FORT WORTH TEXAS SAYS ORDERS FOR SCANNERS THAT SPOT POLICE FREQUENCIES HAVE RISEN ABOUT FIFTEEN PERCENT IN THE PAST MONTH IN DOLLAR TERMS TRUCKERS ACCOUNT FOR ABOUT EIGHTEEN PERCENT OF THE TWO HUNDRED FIFTY MILLION DOLLARS DETECTOR MARKET SAYS DON RICH OF B. E. L. TRONICS A COVINGTON GEORGIA MANUFACTURER BRIEFS IT WAS JUST A MATTER OF TIME P. R. PRACTITIONERS CAN SCHMOOZE ON LINE WITH PRFORUM AN ELECTRONIC MAIL NETWORK STARTED BY INDIANA UNIVERSITY IN INDIANAPOLIS FOR ANOTHER FORM OF NEWS SHARING CLEARBLUE EASY PREGNANCY TEST KITS COME WITH NUMBERS THAT ALLOW USERS FIVE MINUTES OF FREE PHONE CALLS SURETY CAPITAL IS THE JACKALOPE OF THE TEXAS BANKING INDUSTRY A HYBRID CREATURE THAT FEW HAVE EVER SEEN NEITHER A PUREBRED BANK NOR A TRADITIONAL FINANCE INSTITUTION SURETY CAPITAL HAS CARVED A NICHE AS A SPECIALTY LENDER THAT FINANCES INSURANCE PREMIUMS OFFERS SECURED CREDIT CARDS AND MAKES A MARKET BUYING INSURANCE CLAIMS OWED TO DOCTORS' OFFICES SURETY HAS BUILT ITSELF ONE OF THE BANKING WORLD'S MOST ENVIABLE INTEREST RATE SPREADS THE DIFFERENCE BETWEEN THE RATE PAID ON DEPOSITS AND THE RATE IMPOSED FOR LOANS A KEY MEASURE OF A BANK'S PROFITABILITY SURETY'S AVERAGE SPREAD OF SEVEN POINT TWO SEVEN PERCENTAGE POINTS IN NINETEEN NINETY THREE RANKS AS ONE OF THE BEST AMONG THE ROUGHLY ONE THOUSAND TWO HUNDRED BANKS IN TEXAS AND IS IN THE TOP TEN PERCENT NATIONALLY EVEN MORE AMAZING IS ITS RETURN ON ASSETS A STAGGERING TWELVE PERCENT IN AN INDUSTRY WHERE ONE PERCENT IS CONSIDERED HEALTHY PROBLEM IS FEW OUTSIDE OF THE COMPANY EVEN KNOW THIS COMPANY EXISTS NO ANALYSTS WHO TRACK SURETY'S EXPLOITS COULD BE FOUND THE COMPANY'S STOCK A NASDAQ SMALL CAPITALIZATION ISSUE BASICALLY TRADES BY APPOINTMENT ONLY WITH A SCANT FOUR THOUSAND ONE HUNDRED SIXTY SHARES A DAY AVERAGE TRADING VOLUME BUT THE MEAGER BAND OF FANS FAMILIAR WITH SURETY SAY THIS FIFTY MILLION DOLLAR IN ASSETS BANKING CONCERN IS POISED FOR GROWTH THAT WITHIN THE YEAR COULD TRIPLE THE VALUE OF ITS SHARES WHICH CURRENTLY TRADE AT AROUND THREE DOLLARS AND TWENTY FIVE CENTS ITS YEARLY LOW QUOTE THEY ARE MASTERS AT NICHE BANKING AND GROWING AGGRESSIVELY QUOTE SAYS JEFFREY STONE PRESIDENT OF STONE ASSET MANAGEMENT IN DALLAS AT THIS PRICE THEY CERTAINLY WARRANT A BUY BUYING HOWEVER ISN'T WHAT MOST HAVE BEEN DOING WITH SURETY'S SHARES DESPITE STRONG EARNINGS FOR NINETEEN NINETY THREE NINETEEN CENTS A SHARE COMPARED WITH ZERO EARNINGS THE YEAR BEFORE AND ESTIMATES THAT THE COMPANY WILL DOUBLE ITS PER SHARE PROFIT THIS YEAR SHORT SELLERS HAVE BEEN HOUNDING SURETY STOCK HELPING TO DRIVE THE PRICE DOWN IN THE PAST YEAR FROM A HIGH APPROACHING ELEVEN DOLLARS ADJUSTED FOR A ONE FOR TEN REVERSE STOCK SPLIT LAST SUMMER TRADERS SAY THE SHORTS WHO BORROW SHARES AND IMMEDIATELY SELL THEM HOPING TO REPLACE THEM LATER AT A LOWER PRICE AND THUS POCKET THE DIFFERENCE ARE BANKING THAT SURETY'S INSURANCE PREMIUM FINANCING BUSINESS WHICH ACCOUNTS FOR ABOUT ONE THIRD OF THE COMPANY'S REVENUE COULD BE HARD HIT BY THE CLINTON HEALTH CARE SYSTEM WHICH HOPES TO IMPLEMENT UNIVERSAL COVERAGE A CONCEPT THAT WOULD MEAN FEWER INDIVIDUALS FINANCING THEIR INSURANCE PREMIUMS BUT THERE'S A HUGE FLAW IN THAT REASONING SURETY DOESN'T FINANCE HEALTH CARE PREMIUMS FOR INDIVIDUALS IT FINANCES PROPERTY AND CASUALTY INSURANCE PREMIUMS FOR BUSINESSES BECAUSE THERE'S NO ONE FOLLOWING THE COMPANY A LOT OF PEOPLE HAVE A MISCONSTRUED NOTION OF WHAT SURETY DOES SAYS LAUREL MILLER A BROKER AT DALLAS RESEARCH AND TRADING A MARKET MAKER FOR SURETY'S STOCK THE COMPANY'S INSURANCE PREMIUM LOAN PORTFOLIO HAS GROWN TO MORE THAN SIXTEEN MILLION DOLLARS FROM ONE MILLION DOLLARS IN NINETEEN EIGHTY SEVEN THOSE LOANS CARRY BIG ANNUAL INTEREST RATES OF SIX PERCENT TO THIRTY ONE PERCENT WITH THE AVERAGE YIELD TOPPING THIRTEEN PERCENT YEARLY LOSSES HAVE BEEN LESS THAN ZERO POINT FIVE PERCENT IN ITS MEDICAL FACTORING BUSINESS SURETY BUYS INSURANCE CLAIMS OWED TO MEDICAL OFFICES AND HOSPITALS TYPICALLY ADVANCING FIFTY PERCENT OF THE CLAIM VALUE WHEN THE INSURANCE COMPANY PAYS OFF USUALLY WITHIN THIRTY TO SIXTY DAYS SURETY TAKES ITS FEE OF TWO PERCENT THEN FORWARDS THE BALANCE TO THE MEDICAL OFFICE SINCE SURETY ONLY BUYS CLAIMS ALREADY APPROVED FOR PAYMENT BY INSURANCE FIRMS THE COMPANY SAYS IT HAS NEVER EXPERIENCED A CREDIT LOSS YIELDS HAVE EXCEEDED TWENTY FIVE PERCENT ANNUALLY HEALTH CARE REFORM WHICH MANY ARGUE WILL RESULT IN EVEN LONGER PROCESSING TIMES FOR CLAIMS JUST MEANS AN INCREASE IN BUSINESS FOR US SAYS SURETY CHAIRMAN AND CHIEF EXECUTIVE OFFICER C. JACK BEAN SURETY ALSO HAS HAD ZERO LOSSES ON THE SECURED CREDIT CARDS IT OFFERS WHICH CARRY AN ANNUAL RATE OF SEVENTEEN POINT NINE PERCENT AND ARE BACKED BY A MANDATORY SAVINGS ACCOUNT AT ONE OF THE COMPANY'S SURETY BANK BRANCHES SURETY WITH SINGLE BRANCHES IN HURST CHESTER LUFKIN AND WELLS ALSO MAKES TRADITIONAL CONSUMER AND COMMERCIAL LOANS WHICH GENERATE ABOUT ONE THIRD OF ITS REVENUE THE TWO PROBLEMS SURETY FACES ARE INTEREST RATES INCHING BACK UP AND LACK OF ADEQUATE CAPITAL TO CONTINUE GROWING INTEREST RATES MR. STONE CONTENDS DON'T POSE A SERIOUS THREAT THOUGH THE SPECTER OF INFLATION WOULD BUFFET THE STOCK MARKET PARTICULARLY SMALL CAPITALIZATION ISSUES SUCH AS SURETY BUT SURETY HAS SOMETHING OF A SECRET WEAPON WHERE ITS PEERS HOLD LOANS THAT MATURE YEARS HENCE SURETY'S INSURANCE PREMIUM FINANCING LOANS EXTEND FOR EIGHT OR NINE MONTHS MAXIMUM MEDICAL FACTORING LOANS ARE OUTSTANDING FOR ONE OR TWO MONTHS THUS SURETY CAN QUICKLY ADJUST TO INTEREST RATE INCREASES AS FOR GROWTH THE COMPANY IS CONSTRAINED BY A LACK OF ASSETS FIFTY MILLION MR. BEAN CONCEDES ONLY GOES SO FAR BUT SURETY IS IN THE MIDST OF AN AGGRESSIVE PROGRAM TO EXPAND ITS ASSETS TO FIVE HUNDRED MILLION DOLLARS BY NINETEEN NINETY EIGHT THE COMPANY CURRENTLY HAS IN ITS SIGHTS THREE SMALL COUNTRY BANKS IT WANTS TO BUY IN NINETEEN NINETY FOUR THOSE ACQUISITIONS WOULD BOOST ASSETS TO SEVENTY FIVE MILLION DOLLARS SURETY TARGETS SMALL BANKS WITH TINY LOAN TO DEPOSIT RATIOS THAT ALLOWS THE COMPANY TO FUNNEL THE SURPLUS ASSETS INTO ITS NICHE BANKING SERVICES YEAR ENDED DECEMBER THIRTY FIRST NINETEEN NINETY THREE FOURTH QUARTER ENDED DECEMBER THIRTY FIRST NINETEEN NINETY THREE JANUARY WAS A GOOD MONTH FOR TESORO PETROLEUM SHARES OF THE SAN ANTONIO COMPANY LEAD THE LIST OF TEXAS STOCKS WITH THE LARGEST YEAR TO DATE GAIN UP MORE THAN EIGHTY EIGHT PERCENT TO TEN POINT THREE SEVEN FIVE DOLLARS LAST WEEK THE COMPANY REPORTED NET INCOME OF SIXTEEN POINT SIX MILLION DOLLARS OR ONE DOLLAR A SHARE FOR THE FOURTH QUARTER COMPARED WITH A LOSS OF TWENTY FOUR POINT NINE MILLION DOLLARS OR ONE DOLLAR AND NINETY THREE CENTS A SHARE IN THE YEAR EARLIER PERIOD TESORO'S STOCK PRICE BEGAN RISING IN MID JANUARY ON NEWS THAT BROKER SLASH DEALERS LOEB PARTNERS AND LOEB ARBITRAGE FUND OF NEW YORK ACQUIRED A FIVE POINT FOUR PERCENT STAKE IN THE COMPANY C. N. B. C. FINANCIAL CORRESPONDENT DAN DORFMAN ALSO NOTED LAST WEEK THAT TESORO IS RIPE FOR AN EARNINGS BLOWOUT SHARES OF LA QUINTA MOTOR INNS SAN ANTONIO INCREASED ELEVEN POINT SIX PERCENT TO THIRTY FOUR DOLLARS AND SEVENTY FIVE CENTS AND TRADED MORE THAN FOUR TIMES THEIR AVERAGE DAILY VOLUME AFTER THE COMPANY SAID ITS BOARD AUTHORIZED A REPURCHASE OF AS MUCH AS TEN MILLION DOLLARS IN COMMON STOCK VTEL OF AUSTIN DROPPED TWENTY FOUR PERCENT TO FIVE POINT SIX TWO FIVE DOLLARS ON NEWS THAT THE COMPANY EXPECTS PER SHARE LOSSES OF TWENTY SIX CENTS TO TWENTY NINE CENTS FOR NINETEEN NINETY THREE'S FOURTH QUARTER PRIMARILY BECAUSE OF LOWER THAN ANTICIPATED REVENUE AND GROSS PROFIT MARGINS VTEL POSTED PROFIT OF SIX POINT NINE MILLION DOLLARS OR ONE CENT A SHARE THE SAME QUARTER A YEAR AGO LANDRY'S THE HOUSTON BASED SEAFOOD CHAIN TRADED TRIPLE ITS AVERAGE VOLUME LOSING THREE POINT ONE TWO FIVE DOLLARS A SHARE AFTER POSTING STRONGER EARNINGS THAN ANALYSTS ESTIMATED FOR THE FOURTH QUARTER LANDRY'S REPORTED NET INCOME OF FIVE HUNDRED EIGHTEEN THOUSAND DOLLARS OR NINE CENTS A SHARE COMPARED WITH ANALYSTS' ESTIMATES OF EIGHT CENTS A SHARE A YEAR AGO LANDRY'S REPORTED EARNINGS OF TWO HUNDRED SEVENTY TWO THOUSAND DOLLARS OR SIX CENTS A SHARE EXCLUDING A GAIN FOR EARLY RETIREMENT OF DEBT SURETY CAPITAL CORPORATION'S RETURN ON ASSETS WAS ZERO POINT SEVEN SIX PERCENT IN NINETEEN NINETY THREE BECAUSE OF INCORRECT INFORMATION PROVIDED BY THE COMPANY SURETY'S RETURN ON ASSETS WAS MISSTATED AS TWELVE PERCENT IN A TEXAS JOURNAL ARTICLE LAST WEDNESDAY THE DOLLAR RETREATED AGAINST THE YEN YESTERDAY AMID FEARS THAT A U. S. JAPAN TRADE ACCORD WON'T BE REACHED IN TIME FOR THE SUMMIT BETWEEN PRESIDENT CLINTON AND JAPAN'S PRIME MINISTER MORIHIRO HOSOKAWA TOMORROW THE DOLLAR WAS CHOPPED LOWER IN ASIAN TRADING ON A STATEMENT BY MR. HOSOKAWA CONFIRMING THAT TRADE TALKS HAD STALLED AND RAISING THE SPECTER OF MORE U. S. PRESSURE FOR A STRONG YEN WHEN THE FLAGGING JAPANESE ECONOMY CAN ILL AFFORD IT BUT THE SLIDE WAS REVERSED LATE IN NEW YORK TRADING ON STATEMENTS BY UNIDENTIFIED U. S. TREASURY OFFICIALS WHO DISMISSED SUGGESTIONS THAT THE U. S. WOULD QUOTE TALK UP QUOTE THE YEN SHOULD THE TRADE TALKS INDEED COLLAPSE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FIVE EIGHT FIVE MARKS DOWN FROM ONE POINT SEVEN SIX FOUR OH MARKS LATE TUESDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED EIGHT POINT THREE FIVE YEN DOWN FROM ONE HUNDRED EIGHT POINT SEVEN FIVE YEN STERLING WAS TRADING AT ONE POINT FOUR SIX ONE FIVE DOLLARS DOWN FROM ONE POINT FOUR SIX SIX FIVE DOLLARS ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED EIGHT POINT TWO OH YEN AND AT ONE POINT SEVEN FIVE SEVEN OH MARKS TRADERS SAID THE DOLLAR IS UNLIKELY TO ADVANCE AGAINST THE YEN UNLESS JAPAN SHOWS MORE WILLINGNESS TO BREAK DOWN TRADE BARRIERS AND STIMULATE CONSUMER DEMAND AFTER THE DROP FOLLOWING MR. HOSOKAWA'S COMMENTS THE DOLLAR SLID FURTHER ON NEWS THAT DEPUTY PRIME MINISTER TSUTOMO HATA WAS BEING SENT TO WASHINGTON A DAY EARLY TO TRY TO SALVAGE AN AGREEMENT THIS MOVE WAS PERCEIVED BY TRADERS AS ANOTHER SIGN OF DESPERATION THE CLINTON ADMINISTRATION SAID LATER THAT IN VIEW OF MR. HATA'S VISIT FOR DIRECT TALKS WORKING LEVEL NEGOTIATIONS WERE BEING SUSPENDED AS BEING ESSENTIALLY USELESS THE DOLLAR REACHED AN INTRADAY LOW OF ONE HUNDRED SEVEN POINT SEVEN THREE YEN BASED ON THOSE REPORTS AND IT CONTINUED TO SKID JUST ABOVE THOSE LOWS UNTIL THE CONCILIATORY REMARKS WERE MADE BY THE U. S. TREASURY OFFICIALS THE DOLLAR HAD RETREATED SINCE EARLY JANUARY ON ANY INDICATION THAT THE U. S. IS DISPLEASED WITH JAPAN'S PROGRESS IN CURBING ITS HUGE TRADE SURPLUS BUT WITH A PLETHORA OF OFTEN CONTRADICTORY STATEMENTS YESTERDAY DOLLAR YEN MOVEMENTS REMAINED IN FAIRLY TIGHT RANGES SAID DENNIS PETTIT FOREIGN EXCHANGE MANAGER OF THE LONG TERM CREDIT BANK OF JAPAN IN NEW YORK YOU GET THE IMPRESSION FROM HEADLINES THAT THE TALKS AREN'T GOING WELL BUT THEN YOU HAVE PEOPLE SAYING ITS PART OF THE POSTURING AND BLUFFING THAT TAKES PLACE IN ALL NEGOTIATIONS MR. PETTIT SAID HE NOTED THERE ARE MAJOR PROBLEMS IN EVALUATING DOLLAR YEN MOVEMENTS PRIOR TO ANY DEFINITIVE OUTCOME IN THE TRADE TALKS THE FIRST PROBLEM IS WE AREN'T SURE TO WHAT DEGREE THERE'S STILL POSTURING AND TO WHAT DEGREE THERE IS A PROGRESS HE SAID THE SECOND PROBLEM IS THAT THERE IS ABSOLUTELY NO PRECEDENT TO IMAGINE THE CONSEQUENCES OF A FAILURE MR. PETTIT SAID HE CONSIDERED IT UNLIKELY THAT THE CLINTON ADMINISTRATION WOULD PUT MR. HATA IN AN UNTENABLE POSITION FROM A NEGOTIATING POINT OF VIEW BUT IN A NEWS BRIEFING LATE YESTERDAY U. S. TRADE REPRESENTATIVE MICKEY KANTOR HELD OUT ONLY MODERATE HOPE THAT A SATISFACTORY AGREEMENT WILL BE REACHED WE MAY OR MAY NOT REACH AGREEMENT FRIDAY HE SAID MR. KANTOR REITERATED THAT THE U. S. WILL WEIGH ITS OPTIONS IF AN AGREEMENT ISN'T REACHED ON U. S. AUTOS AND AUTO PARTS ACCESS TO JAPAN'S INSURANCE MARKET AND LIBERALIZATION OF GOVERNMENT PROCUREMENT POLICIES NOR DID HE RULE OUT THE POSSIBILITY OF TRADE SANCTIONS SHOULD THE JAPANESE PROVE INTRACTABLE HOSPITAL STAFFING SERVICES INCORPORATED SAID IN RESPONSE TO A SECURITIES AND EXCHANGE COMMISSION FILING MADE BY A SHAREHOLDER GROUP LED BY NUMED HOME HEALTH CARE INCORPORATED THAT THE ONGOING BASE OF ITS BUSINESS QUOTE REMAINS SOUND QUOTE A GROUP LED BY NUMED BASED IN INDEPENDENCE OHIO SAID IN THE FILING THAT IT IS SEEKING TO OUST A MAJORITY OF THE DIRECTORS OF HOSPITAL STAFFING AND ULTIMATELY REMOVE SOME OF THE COMPANY'S SENIOR MANAGERS IN A JANUARY EIGHTEENTH LETTER TO THE COMPANY THE NUMED GROUP CITED WHAT IT CALLED THE EXTREMELY POOR PERFORMANCE OF HOSPITAL STAFFING UNDER ITS CURRENT MANAGEMENT HOSPITAL STAFFING BASED IN FORT LAUDERDALE FLORIDA COUNTERED THAT IT IS CONTINUING TO MOVE FORWARD WITH PROGRAMS AIMED AT RESTORING LONG TERM GROWTH IMPROVING OUR OPERATING RESULTS AND INCREASING SHAREHOLDER VALUE THIS BANK'S UNIT FIRST INTERSTATE BANK OF CALIFORNIA NAMED EARL JAMES CALLISON THIRTY FOUR YEARS OLD SENIOR VICE PRESIDENT AND MANAGER NORTHERN CALIFORNIA REAL ESTATE MR. CALLISON WAS PREVIOUSLY VICE PRESIDENT AND MANAGER OF THE COMPANY'S REAL ESTATE CENTER IN CONCORD CALIFORNIA COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE FIVE NEW DIRECTORS WERE ELECTED AT THIS REAL ESTATE INVESTMENT TRUST INCREASING THE BOARD'S SIZE TO NINE MEMBERS THEY ARE TOM BRADLEY SEVENTY SIX YEARS OLD WHO WAS MAYOR OF LOS ANGELES FROM NINETEEN SEVENTY THREE TO NINETEEN NINETY THREE R. BRUCE ANDREWS FIFTY THREE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NATIONWIDE HEALTH PROPERTIES INCORPORATED WARREN FIX FIFTY FIVE A PARTNER IN THE CONTRARIAN GROUP AN INVESTMENT AND MANAGEMENT FIRM WARNER HEINEMAN SEVENTY ONE A SENIOR ADVISER AT FIRST BUSINESS BANK FRED L. RIEDMAN SIXTY THREE A PARTNER IN THE LAW FIRM OF RIEDMAN DALESSI AND DYBENS EDSEL D. DUNFORD FIFTY EIGHT YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF THIS PROVIDER OF HIGH TECHNOLOGY PRODUCTS AND SERVICES FOR THE AUTOMOTIVE AEROSPACE DEFENSE AND INFORMATION MARKETS SAID HE PLANS TO RETIRE AT THE END OF NINETEEN NINETY FOUR PETER S. HELLMAN FORTY FOUR IS EXPECTED TO SUCCEED MR. DUNFORD AT THE END OF THE YEAR MR. HELLMAN WAS NAMED TO THE QUOTE TRANSITIONAL QUOTE POSITION OF EXECUTIVE VICE PRESIDENT AND ASSISTANT PRESIDENT EFFECTIVE MARCH FIRST HE IS CURRENTLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ALSO RONALD D. SUGAR FORTY FIVE CURRENTLY VICE PRESIDENT OF GROUP DEVELOPMENT OF T. R. W. SPACE AND ELECTRONICS GROUP ONE OF THE COMPANY'S SEVEN MAIN BUSINESS GROUPS WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER EFFECTIVE APRIL FIRST HE WILL SUCCEED MR. HELLMAN FORD MOTOR COMPANY REBOUNDED STRONGLY IN THE FOURTH QUARTER FROM A YEAR EARLIER LOSS BUT ITS STOCK SLID BECAUSE INVESTORS WERE LOOKING FOR EVEN BETTER RESULTS FORD'S FOURTH QUARTER PROFIT OF SEVEN HUNDRED NINETEEN MILLION DOLLARS OR ONE DOLLAR AND THIRTY CENTS A SHARE WHICH INCLUDED A SMALL GAIN ON THE SALE OF A PARTS BUSINESS WAS ON THE HIGH SIDE OF ANALYSTS' EXPECTATIONS IT COMPARES WITH A YEAR EARLIER LOSS OF EIGHT HUNDRED FORTY MILLION DOLLARS OR ONE DOLLAR AND EIGHTY FIVE CENTS A SHARE AFTER CERTAIN SPECIAL CHARGES BUT THE STOCK MARKET'S REACTION SHOWS THAT REPORTING SOLID YEAR TO YEAR GAINS IS NO LONGER ENOUGH TO BOOST AUTO STOCKS WHICH HAVE LATELY TRADED AT HISTORIC HIGHS BECAUSE DEMAND FOR AUTOS IS EXPECTED TO CONTINUE TO RISE FORD FELL ONE DOLLAR APIECE TO SIXTY EIGHT DOLLARS AND FIFTY CENTS YESTERDAY IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING SHARES OF GENERAL MOTORS CORPORATION WHICH IS TO REPORT FOURTH QUARTER RESULTS TODAY FELL FIFTY CENTS APIECE TO SIXTY FOUR DOLLARS AND TWENTY FIVE CENTS IN BIG BOARD TRADING QUOTE THIS WAS ONE OF THE MOST WIDELY ANTICIPATED EARNINGS SURPRISES IN RECENT HISTORY QUOTE SAID JACK KIRNAN A SALOMON BROTHERS AUTO ANALYST FORD WOULD HAVE HAD TO BLOW RIGHT THROUGH THE HIGHEST ESTIMATE ON THE STREET FOR THE STOCK TO RISE FORD'S WORLD WIDE REVENUE FOR THE FOURTH QUARTER WAS TWENTY SEVEN POINT EIGHT BILLION DOLLARS UP NINE POINT SIX PERCENT FROM TWENTY FIVE POINT FOUR BILLION DOLLARS A YEAR EARLIER FOR ALL OF NINETEEN NINETY THREE FORD SAID IT EARNED TWO POINT FIVE BILLION DOLLARS OR FOUR DOLLARS AND FIFTY FIVE CENTS A COMMON SHARE COMPARED WITH A RECORD LOSS OF SEVEN POINT FOUR BILLION DOLLARS OR FIFTEEN DOLLARS AND SIXTY ONE CENTS A SHARE FOR NINETEEN NINETY TWO THE NINETEEN NINETY TWO LOSS WAS LARGELY BECAUSE OF A HUGE ONE TIME CHARGE TO ACCOUNT FOR FUTURE RETIREE BENEFITS FOR ALL OF NINETEEN NINETY THREE FORD POSTED REVENUE OF ONE HUNDRED EIGHT POINT FIVE BILLION DOLLARS COMPARED WITH THE ONE HUNDRED POINT ONE BILLION DOLLARS IN NINETEEN NINETY TWO FORD CHAIRMAN ALEXANDER TROTMAN CALLED THE NINETEEN NINETY THREE RESULTS THE STRONGEST TURNAROUND IN FORD'S HISTORY HE CREDITED FORD'S IMPROVED PROFITABILITY TO STRENGTHENING OR STABILIZING ECONOMIES AROUND THE WORLD LOOKING AHEAD WE'RE IN GOOD SHAPE FOR NINETEEN NINETY FOUR MR. TROTMAN SAID WE HAVE STRONG NEW PRODUCTS AND WE EXPECT BETTER ECONOMIC CONDITIONS STILL FORD'S STRONG FOURTH QUARTER PROFIT OF SEVEN HUNDRED NINETEEN MILLION DOLLARS FELL SHORT OF MUCH SMALLER CHRYSLER CORPORATION'S RECENTLY REPORTED SEVEN HUNDRED SEVENTY SEVEN MILLION DOLLAR PROFIT FOR THE PERIOD FORD'S NORTH AMERICAN OPERATION IS SHOWING SOME MATERIAL IMPROVEMENT SALOMON'S MR. KIRNAN SAID QUOTE IT'S NOT WHERE CHRYSLER IS BUT THE GAP IS NARROWING QUOTE NOTABLY FORD POSTED A SOLID IMPROVEMENT IN ITS U. S. AUTOMOTIVE PROFITS WHICH SOARED TO SIX HUNDRED SIXTY NINE MILLION DOLLARS IN THE FOURTH QUARTER COMPARED WITH A LOSS OF FOUR HUNDRED FIVE MILLION DOLLARS IN THE NINETEEN NINETY TWO QUARTER THE FOURTH QUARTER RESULTS FOR NINETEEN NINETY THREE ALSO INCLUDED A ONE TIME SEVENTY THREE MILLION DOLLAR GAIN FROM THE SALE OF PART OF FORD'S NORTH AMERICAN AUTOMOTIVE SEATING AND SEATTRIM BUSINESS FORD'S U. S. FACTORIES OPERATED AT ONE HUNDRED EIGHT PERCENT OF THEIR AVAILABLE STRAIGHT TIME CAPACITY DURING THE LATEST QUARTER AND ARE PROJECTED TO CONTINUE AT THAT LEVEL IN THE CURRENT QUARTER FORD'S CASH REBATES OR SALES INCENTIVES DROPPED TO EIGHT HUNDRED SIXTY FIVE DOLLARS A VEHICLE IN THE FOURTH QUARTER DOWN FROM ONE THOUSAND ONE HUNDRED FIFTY DOLLARS A VEHICLE IN THE YEAR EARLIER PERIOD BUT FORD STILL EARNED MUCH LESS THAN CHRYSLER ON EVERY VEHICLE IT SOLD IN THE FOURTH QUARTER DESPITE BEING THE INDUSTRY'S LOW COST PRODUCER FORD OFFICIALS HAVE GROWN SENSITIVE TO SUCH COMPARISONS AND YESTERDAY DAVID N. MCCAMMON FORD'S VICE PRESIDENT FOR FINANCE MAINTAINED I EXPECT THAT TREND TO CHANGE DRAMATICALLY OVER THE NEXT COUPLE OF YEARS AS FORD BOOSTS PRODUCTION OF MORE PROFITABLE MINIVANS AND SPORT UTILITY VEHICLES FORD IS PUMPING MONEY INTO DEVELOPING AND LAUNCHING NEW PRODUCTS ITS CASH FLOW FROM AUTOMOTIVE OPERATIONS WAS UP ONE POINT ONE ONE BILLION DOLLARS FROM NINETEEN NINETY TWO TO SIX POINT EIGHT SIX BILLION DOLLARS BUT VIRTUALLY ALL OF THAT WAS FUNNELED INTO HIGHER CAPITAL EXPENDITURES CAPITAL SPENDING AMOUNTED TO SIX POINT SEVEN ONE BILLION DOLLARS IN NINETEEN NINETY THREE COMPARED WITH NINETEEN NINETY TWO OUTLAYS OF FIVE POINT SEVEN OH BILLION DOLLARS WE'RE AT A RECORD LEVEL OF PRODUCT LAUNCHES AND WE'VE JUST EMERGED FROM A RELATIVELY WEAK PERIOD IN THE CYCLE SAID ENDERS DICKINSON FORD'S MANAGER OF INVESTOR RELATIONS AS THE RECOVERY CONTINUES WE WOULD EXPECT OUR FINANCIAL RESULTS AND CASH FLOW TO IMPROVE OVERSEAS FORD'S FOURTH QUARTER LOSS NARROWED TO THREE HUNDRED SEVENTY TWO MILLION DOLLARS FROM NINE HUNDRED NINE MILLION DOLLARS A YEAR EARLIER FORD POSTED A SMALLER ONE HUNDRED FORTY THREE MILLION DOLLAR LOSS AT FORD OF EUROPE COMPARED WITH A YEAR EARLIER LOSS OF SEVEN HUNDRED FORTY NINE MILLION DOLLARS EVEN THOUGH EUROPEAN VEHICLE SALES WERE DOWN SIXTEEN PERCENT IN NINETEEN NINETY THREE COMPARED WITH NINETEEN NINETY TWO FORD'S JAGUAR CARS LIMITED UNIT POSTED A LOSS OF ONE HUNDRED FORTY FIVE MILLION DOLLARS AFTER A ONE HUNDRED NINE MILLION DOLLAR RESTRUCTURING CHARGE COMPARED WITH A LOSS OF ONE HUNDRED TWELVE MILLION DOLLARS IN NINETEEN NINETY TWO MEANWHILE FORD'S FINANCIAL SERVICES GROUP POSTED A PROFIT OF ONE POINT SIX BILLION DOLLARS FOR ALL OF NINETEEN NINETY THREE UP FROM ONE POINT TWO FOUR BILLION DOLLARS A YEAR EARLIER THAT INCLUDES A LOSS FOR THE FIRST NATIONWIDE BANKING UNIT OF FIFTY FIVE MILLION DOLLARS COMPARED WITH A LOSS OF EIGHTY ONE MILLION DOLLARS IN NINETEEN NINETY TWO THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND ONE QUARTER PERCENT HIGH THREE AND ONE SIXTEENTH PERCENT LOW THREE AND ONE SIXTEENTH PERCENT NEAR CLOSING BID THREE AND ONE EIGHTH PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT THREE FIVE PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT THREE EIGHT PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT FOUR THREE PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT FOUR SEVEN PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT FIVE OH PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT FIVE FIVE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT SIX OH PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT FOUR ONE PERCENT THIRTY DAYS THREE POINT FOUR SIX PERCENT SIXTY DAYS THREE POINT FIVE OH PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT SEVEN ONE PERCENT ONE MONTH TWO POINT SEVEN SEVEN PERCENT TWO MONTHS TWO POINT EIGHT THREE PERCENT THREE MONTHS THREE POINT OH ONE PERCENT SIX MONTHS THREE POINT THREE SIX PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT THREE FIVE PERCENT ONE MONTH THREE POINT FOUR TWO PERCENT THREE MONTHS THREE POINT SIX TWO PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT THREE OH PERCENT THIRTY DAYS THREE POINT THREE FIVE PERCENT SIXTY DAYS THREE POINT THREE NINE PERCENT NINETY DAYS THREE POINT FOUR THREE PERCENT ONE HUNDRED TWENTY DAYS THREE POINT FOUR FIVE PERCENT ONE HUNDRED FIFTY DAYS THREE POINT FOUR NINE PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT ONE MONTH THREE AND ONE HALF PERCENT THREE AND THREE EIGHTHS PERCENT TWO MONTHS THREE AND NINE SIXTEENTHS PERCENT THREE AND SEVEN SIXTEENTHS PERCENT THREE MONTHS THREE AND FIVE EIGHTHS PERCENT THREE AND ONE HALF PERCENT FOUR MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT THREE AND NINE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE QUARTERS PERCENT THREE AND FIVE EIGHTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND THREE EIGHTHS PERCENT ONE MONTH THREE AND NINE SIXTEENTHS PERCENT THREE MONTHS THREE AND THREE QUARTERS PERCENT SIX MONTHS FOUR AND ONE EIGHTH PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT NINE ONE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT TWO FIVE PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY SEVENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT TWO FOUR PERCENT THIRTEEN WEEKS THREE POINT FOUR OH PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SEVEN POINT OH NINE PERCENT SIXTY DAYS SEVEN POINT ONE FIVE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SEVEN POINT OH EIGHT PERCENT SIXTY DAYS SEVEN POINT ONE EIGHT PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT TWO FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN TWO PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS T. R. W. INCORPORATED CLEVELAND REPORTED A SEVEN POINT EIGHT PERCENT JUMP IN FOURTH QUARTER PROFIT BOOSTED BY STRONG RESULTS IN ITS NORTH AMERICAN AUTOMOTIVE OPERATIONS AND LOWER INTEREST EXPENSES PROFIT ROSE TO SIXTY THREE POINT SIX MILLION DOLLARS OR NINETY SIX CENTS A SHARE FROM FIFTY NINE MILLION DOLLARS OR NINETY FOUR CENTS A SHARE IN NINETEEN NINETY TWO SALES FELL TO TWO BILLION DOLLARS FROM TWO POINT ONE BILLION DOLLARS FOR THE COMPANY WHICH OPERATES AUTOMOTIVE SPACE AND DEFENSE AND OTHER BUSINESSES T. R. W. SAID INCREASED SALES FROM ITS NORTH AMERICAN AND EUROPEAN AIR BAG SYSTEMS BUSINESS WERE MORE THAN OFFSET BY LOWER SPACE AND DEFENSE INDUSTRY SALES THE COMPANY SAID A RESTRUCTURING PROGRAM COMPLETED LAST YEAR IMPROVED ITS FINANCIAL PERFORMANCE QUOTE T. R. W. SHOULD BENEFIT IN NINETEEN NINETY FOUR FROM HIGHER NORTH AMERICAN VEHICLE PRODUCTION QUOTE INCLUDING INCREASED ORDERS FOR ITS AIR BAG PRODUCTS AND IMPROVED PERFORMANCE IN THE STEERING SYSTEMS BUSINESS WORLD WIDE WE EXPECT LITTLE IMPROVEMENT IN THE EUROPEAN ECONOMY THIS YEAR T. R. W. ADDED FEDERAL MOGUL CORPORATION SOUTHFIELD MICHIGAN ANTONIO MADERO CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CORPORACION INDUSTRIAL SANLUIS S. A. DE CV WAS ELECTED TO THE BOARD OF THIS AUTO PARTS MAKER FILLING A VACANCY LEFT BY THE DEPARTURE OF RONALD W. SKEDDLE ALTUS FINANCE A SUBSIDIARY OF CREDIT LYONNAIS IN NINETEEN NINETY ONE ACQUIRED A THREE POINT TWO FIVE BILLION DOLLAR JUNK BOND PORTFOLIO FROM FAILED INSURER EXECUTIVE LIFE INSURANCE COMPANY OF THE U. S. IN AN ARTICLE YESTERDAY THE FAILED INSURER WAS INCORRECTLY IDENTIFIED AS EQUITABLE LIFE INSURANCE COMPANY EQUITABLE LIFE REMAINS A GOING CONCERN AIRGAS INCORPORATED BASED IN RADNOR PENNSYLVANIA COMPLETED ITS ACQUISITION OF CERTAIN BUSINESSES OF AIRCO GAS AND GEAR COMPANY A UNIT OF B. O. C. GROUP INCORPORATED AN ARTICLE YESTERDAY INCORRECTLY SAID AIRGAS WAS A UNIT OF B. O. C. GROUP JAMES FIEBIGER FIFTY TWO YEARS OLD FORMER PRESIDENT OF V. L. S. I. TECHNOLOGY INCORPORATED WAS NAMED A DIRECTOR OF THIS MAKER OF COMPUTER PRODUCTS INCREASING THE BOARD TO FIVE ILLINOIS POWER COMPANY SAID ITS SHAREHOLDERS APPROVED THE FORMATION OF A HOLDING COMPANY CALLED ILLINOVA TO QUOTE HELP POSITION THE UTILITY TO COMPETE IN AN INCREASINGLY DEREGULATED UTILITY INDUSTRY QUOTE SHAREHOLDERS WILL OWN ONE SHARE OF ILLINOVA STOCK FOR EACH SHARE OF ILLINOIS POWER STOCK THEY OWN THE HOLDING COMPANY WILL BE THE PARENT OF ILLINOIS POWER AND I. P. GROUP INCORPORATED AND EVENTUALLY ALL NONUTILITY SUBSIDIARIES THE COMPANY WHICH IS SEEKING REGULATORY APPROVAL FOR THE RESTRUCTURING SAID THE NUCLEAR REGULATORY COMMISSION HAS ALREADY GRANTED ITS PERMISSION CONSUMERS DROPPED FEWER PRIVATE LABEL PRODUCTS INTO THEIR GROCERY CARTS DURING THE FOURTH QUARTER PERHAPS SIGNALING THE END OF THE STEADY GAINS THAT HAVE RATTLED MARKETERS OF NATIONAL BRANDS UNIT SALES OF PRIVATE LABEL GOODS IN SUPERMARKETS DROPPED ZERO POINT THREE PERCENT DURING THE THIRTEEN WEEKS ENDED JANUARY SECOND ACCORDING TO INFORMATION RESOURCES INCORPORATED'S INFOSCAN SERVICE DOLLAR SALES OF STORE BRANDS INCREASED ONE POINT ONE PERCENT TO SEVEN POINT SIX EIGHT BILLION DOLLARS DURING THE QUARTER BECAUSE OF INCREASING PRICES OF SOME BRANDS THE SLIGHT DECLINE IN UNIT SALES INDICATES THAT THE DEFENSIVE MANEUVERS OF SOME BIG MARKETERS HAVE PAID OFF ACCORDING TO ANALYSTS SUCH COMPANIES AS PHILIP MORRIS COMPANIES AND PROCTER AND GAMBLE COMPANY HAVE CHOPPED PRICES OF SOME OF THEIR FLAGSHIP BRANDS MANY OTHER MARKETERS FROM JOHNSON AND JOHNSON TO H. J. HEINZ COMPANY RESPONDED TO THE THREAT OF PRIVATE LABEL PRODUCTS BY SPENDING MORE ON PROMOTIONS AND ADVERTISING OR BY SPINNING OUT NEW PRODUCTS MEANT TO GIVE THEM A CLEAR QUALITY ADVANTAGE QUOTE BIG BRANDS ARE BATTLING BACK QUOTE SAYS JOHN MCMILLIN A FOOD ANALYST WITH PRUDENTIAL SECURITIES BUT THE WAR IS FAR FROM OVER IN FACT PRIVATE LABEL GOODS ACTUALLY EKED OUT SMALL INCREASES IN MARKET SHARE DURING THE QUARTER LARGELY BECAUSE TOTAL GROCERY SALES WERE EVEN MORE SLUGGISH TOTAL DOLLAR SALES IN SUPERMARKETS INCHED UP ONLY ZERO POINT FIVE PERCENT DURING THE FOURTH QUARTER WHILE TOTAL UNIT SALES DECLINED ZERO POINT FOUR PERCENT PRIVATE LABEL GOODS ACCOUNTED FOR FOURTEEN POINT NINE PERCENT OF TOTAL DOLLAR SALES AND NINETEEN POINT FIVE PERCENT OF ALL ITEMS SOLD IN GROCERY STORES SALES OF PRIVATE LABEL GOODS CONTINUED TO RISE IN CATEGORIES THAT WERE ONCE CONSIDERED BASTIONS OF BRAND LOYALTY FOR EXAMPLE QUARTERLY SALES OF PRIVATE LABEL COLD REMEDIES GREW TWENTY SIX POINT SIX PERCENT WHILE SALES OF STORE BRAND ANALGESICS GREW NINETEEN PERCENT IN ADDITION SALES OF PRIVATE LABEL SANITARY PROTECTION PRODUCTS INCREASED THIRTY ONE POINT FOUR PERCENT CONVENTIONAL WISDOM HAS HELD THAT CONSUMERS PREFER FAMILIAR BRANDS OF THOSE PRODUCTS BECAUSE OF THEIR PERSONAL NATURE PRIVATE LABEL GOODS ARE UNDERGOING A SUBTLE CHANGE IN THE MARKETPLACE SAYS BRIAN SHAROFF PRESIDENT OF THE PRIVATE LABEL MANUFACTURERS ASSOCIATION THEY'RE SHIFTING FROM COMMODITY ITEMS TO MORE UPSCALE PRODUCTS MR. SHAROFF ADDS THAT SALES OF STORE BRAND GOODS ARE GROWING MORE QUICKLY IN OTHER RETAIL OUTLETS INCLUDING MASS MERCHANDISERS AND WAREHOUSE CLUBS BUT EVEN MR. SHAROFF CONCEDES THAT THE MOMENTUM OF STORE BRANDS HAS SLOWED SHARPLY FROM THE BOOM YEARS BETWEEN NINETEEN EIGHTY EIGHT AND NINETEEN NINETY TWO LARGELY BECAUSE OF PRICE CUTTING BY MARKETERS OF BIG BRANDS SUPERMARKET UNIT SALES OF ALL PRIVATE LABEL PRODUCTS INCREASED ZERO POINT EIGHT PERCENT IN NINETEEN NINETY THREE FROM THE YEAR BEFORE ACCORDING TO INFORMATION RESOURCES COMPARED WITH GROWTH OF FOUR PERCENT IN NINETEEN NINETY ONE AND THREE PERCENT IN NINETEEN NINETY TWO GROCERY MANUFACTURERS TODAY FULLY UNDERSTAND THAT THE NAME OF THE GAME IS VALUE SAYS C. MANLY MOLPUS PRESIDENT OF THE GROCERY MANUFACTURERS OF AMERICA AN INDUSTRY TRADE GROUP THE ORGANIZATION IS POISED TO KICK OFF A YEAR LONG PUBLIC RELATIONS CAMPAIGN THAT WILL ATTEMPT AMONG OTHER THINGS TO CONVINCE RETAILERS THAT NATIONAL BRANDS CAN BE MORE PROFITABLE THAN STORE BRAND GOODS WE'RE VERY COMPETITIVELY POSITIONED INDEED THE EFFORTS OF SOME BIG MARKETERS TO COMBAT THEIR BUDGET RIVALS ARE CLEARLY WORKING IN MAY PHILIP MORRIS CUT PRICES OF ITS PREMIUM CIGARETTES BY TWENTY PERCENT AND OTHER MANUFACTURERS QUICKLY FOLLOWED WHILE CIGARETTES RANKED SECOND ON INFORMATION RESOURCES' ROSTER OF FAST GROWING PRIVATE LABEL CATEGORIES DURING THE THIRD QUARTER OF NINETEEN NINETY THREE GROWTH SLOWED SIGNIFICANTLY DURING THE FOURTH QUARTER QUOTE AS THE PRICE OF PREMIUM CIGARETTES HAS BECOME MORE COMPETITIVE QUOTE SAYS A SPOKESWOMAN FOR PHILIP MORRIS QUOTE MORE CONSUMERS ARE OPTING FOR BRAND NAME CIGARETTES QUOTE MICHIGAN VOTERS OUSTED GUY VANDER JAGT FROM CONGRESS BUT HE'S STILL LIVING THE LIFE TO WHICH HE HAD BECOME ACCUSTOMED OVER TWO DECADES TRAVELING THE COUNTRY SPEAKING TO BUSINESS CONVENTIONEERS AND HEADING A REPUBLICAN CONGRESSIONAL FUND RAISING COMMITTEE A WHAT HOUSE REPUBLICAN LEADERS HAVE BEEN THREATENING TO TAKE THEIR FORMER COLLEAGUE TO COURT AFTER RECENTLY DISCOVERING THAT HE HAD FORMED A POLITICAL ACTION COMMITTEE NAMED THE NATIONAL REPUBLICAN CAMPAIGN COMMITTEE FOR CHANGE OR NRCCC THE NAME RANG A BELL AND SET OFF AN ALARM MR. VANDER JAGT HEADED THEIR OWN NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE OR NRCC EIGHTEEN YEARS UNTIL NINETEEN NINETY THREE AND LEFT THE LONGSTANDING OFFICIAL GROUP FOUR POINT FIVE MILLION DOLLARS IN DEBT HE SHOULD BE THE LAST PERSON REPUBLICANS GROUSE TO COMPETE WITH THEM FOR CONSERVATIVES' DOLLARS MR. VANDER JAGT HASN'T DONE ANY FUND RAISING SO FAR BUT IN A LETTER TO HIM THIS WEEK DEPUTY HOUSE G. O. P. LEADER NEWT GINGRICH OF GEORGIA WARNED THAT THE OFFICIAL COMMITTEE'S NAME AND ACRONYM QUOTE ARE PROTECTED TRADEMARKS QUOTE AND THAT ANY FUND RAISING FOR THE VANDER JAGT PAC QUOTE WILL BE REGARDED AS AN INFRINGEMENT OF THAT TRADEMARK AND LEGAL ACTION WILL BE INITIATED WITHOUT DELAY QUOTE ADDS REPRESENTATIVE BILL PAXON OF NEW YORK THE CURRENT CHAIRMAN OF THE HOUSE G. O. P. COMMITTEE WHO HERETOFORE HAS REFRAINED FROM CRITICIZING HIS PREDECESSOR IT'S AN OUTRAGEOUS ATTEMPT TO TAKE ADVANTAGE OF THE GOOD NAME OF THE PARTY IT'S VERY CLEAR THAT IF PEOPLE WHO PREVIOUSLY RECEIVED A SOLICITATION FROM THE NRCC NOW GET ONE FROM THE NRCCC SIGNED BY THE FORMER CHAIRMAN OF THE NRCC IT WILL CAUSE CONFUSION ABOUT WHO IS SOLICITING MONEY FOR WHAT AFTER REPRESENTATIVE GINGRICH'S WARNING AND INQUIRIES FROM THIS NEWSPAPER MR. VANDER JAGT THIS WEEK TELECOPIED A LETTER TO THE G. O. P. LEADER PROMISING TO CHANGE HIS PAC'S NAME HE HAS BEEN OUT WEST RIDING THE RUBBER CHICKEN CIRCUIT HAVING JOINED A SPEAKER'S BUREAU ON THE STRENGTH OF HIS REPUTATION FOR CONSERVATIVE STEMWINDERS AND IN AN INTERVIEW YESTERDAY FROM LAS VEGAS MR. VANDER JAGT REVEALED THE LIKELY NEW NAME COMMITTEE TO CHANGE THE CONGRESS BUT THE BIG NRCC DEBT STILL RANKLES SOME PEOPLE THE FLAP ALSO OFFERS A GLIMPSE OF A PARTICULAR WASHINGTON TYPE THE FORMER MEMBER OF CONGRESS WHO CAN'T GO HOME AGAIN BECAUSE HOME IN MR. VANDER JAGT'S CASE RURAL LUTHER MICHIGAN ISN'T REALLY HOME AT ALL AFTER HIS TWENTY SIX YEARS IN CONGRESS WASHINGTON IS HOME IN TERMS OF PROFESSIONAL OPPORTUNITIES AND PERSONAL TASTES WITH THE LEGAL SKILLS I POSSESS HE SAYS I THINK THERE IS A BIGGER MARKET FOR THEM IN WASHINGTON THAN THERE IS IN LUTHER IN AN INTERVIEW LAST MONTH MR. VANDER JAGT SAID HE HAS TRIPLED HIS INCOME SINCE LOSING HIS ONE HUNDRED TWENTY NINE THOUSAND FIVE HUNDRED DOLLAR A YEAR SEAT IN CONGRESS A LAWYER HE LOBBIES FOR THE WASHINGTON OFFICE OF BAKER AND HOSTETLER A CLEVELAND BASED LAW FIRM AND STILL DINES WITH HOUSE G. O. P. CLIQUES ON CAPITOL HILL HE SITS ON CORPORATE BOARDS AND WITH AN AGENT'S HELP GIVES MOTIVATIONAL SPEECHES AROUND THE COUNTRY THERE'S A DEARTH OF INSPIRATIONAL SPEAKERS OUT THERE HE SAID AFTER ADDRESSING TRUCK STOP OPERATORS IN LAS VEGAS HE IS GOING OFF TO MOTIVATE MONTANA FARMERS HE OFTEN BEGINS HIS SPEECHES HE SAYS WITH A LINE LIKE DON'T HOLD IT AGAINST ME THAT I WAS A CONGRESSMAN I'M NOW EARNING AN HONEST LIVING I'M A LAWYER QUOTE THAT HE SAID BREAKS 'EM UP BUT BACK IN WASHINGTON REPUBLICANS AREN'T LAUGHING THE PAC EPISODE HOWEVER BRIEFLY REVIVED A FAMILY FEUD THAT REPUBLICANS HAD THOUGHT BEHIND THEM WHEN MR. VANDER JAGT LEFT CONGRESS AFTER HIS NINETEEN NINETY TWO DEFEAT HIS EARLY KUDOS FOR REBUILDING THE PARTY'S MONEY MACHINE FROM THE RUINS OF WATERGATE HAD GIVEN WAY BY NINETEEN NINETY TO REPUBLICANS' COMPLAINTS OF LAVISH SPENDING AND CRONYISM IN THE AWARD OF CONSULTING CONTRACTS HE WON THE FINAL TWO YEARS OF HIS EIGHTEEN YEAR NRCC CHAIRMANSHIP ONLY AFTER A NASTY CHALLENGE EVEN AFTER THAT SCARE MR. VANDER JAGT SPENT ABOUT THREE HUNDRED THOUSAND DOLLARS ON TRAVEL IN HIS FINAL YEAR AS HOUSE REPUBLICANS' CHIEF FUNDRAISER ACCORDING TO EMBITTERED PEOPLE AT THE NRCC HIS EXPENSES THEY SAY INCLUDED CHARTERED AIRPLANES FIRST CLASS AIR FARES HOTEL SUITES MEALS AND LIMOUSINES STOCKED WITH HIS BRAND OF CIGARETTES BY CONTRAST THEY ADD REPRESENTATIVE PAXON SPENT LESS THAN FIVE THOUSAND DOLLARS LAST YEAR MR. VANDER JAGT RECALLING HIS COMMITTEE TRAVELS LATE IN THE NINETEEN NINETY TWO CAMPAIGNS SAYS YOU DON'T COVER FORTY FIVE STATES AND ONE HUNDRED TEN CONGRESSIONAL DISTRICTS IN A TWO AND ONE HALF MONTH PERIOD WITHOUT RUNNING UP SOME EXPENSES MR. VANDER JAGT'S NR TRIPLE C. PAC WAS REGISTERED WITH THE FEDERAL ELECTION COMMISSION THREE DAYS BEFORE CHRISTMAS REPRESENTATIVE GINGRICH ACKNOWLEDGES THAT MR. VANDER JAGT HAD TOLD HIM OF HIS PLANS TO FORM THE COMMITTEE BUT HE ADDS IT'S ONE THING TO SAY I'M GOING TO FORM A LITTLE PAC IN THAT CONVERSATION WITH ME HE WAS DESCRIBING A GENERAL APPROACH TO HELPING ELECT REPUBLICANS HE AT NO POINT SUGGESTED HE'D START A GROUP WHOSE NAME AND ACRONYM IS ALMOST IDENTICAL TO THE NRCC WE WERE VERY SHOCKED WHEN WE SAW THE F. E. C. FILING MR. VANDER JAGT SAYS HE STARTED THE COMMITTEE BECAUSE PEOPLE SAID THEY MISSED GIVING TO ME AND WHY DIDN'T I HAVE A PAC BUT MANY HOUSE REPUBLICANS ARE WARY AND SIMPLY CHANGING THE PAC'S NAME WON'T PACIFY THEM THEY SUSPECT THAT THE COMMITTEE WOULD BE RUN THE WAY THEY DESCRIBE THE VANDER JAGT ERA NRCC UNDERWRITING HIS TRAVELS AND PAYING LARGE FEES FOR OUTSIDE CONSULTANTS BEFORE G. O. P. CANDIDATES SEE ANY MONEY THEY NOTE THAT MR. VANDER JAGT'S OWN NAME HAD BECOME IDENTIFIED WITH THE PARTY IN THE MINDS OF MANY PAST CONTRIBUTORS A POINT HE HIMSELF MADE IN NINETEEN NINETY WHEN HE PLEADED WITH G. O. P. COLLEAGUES TO KEEP THE JOB BUT QUOTE THE SINGLE BIGGEST CONCERN QUOTE SAYS REPRESENTATIVE GINGRICH IS THAT MR. VANDER JAGT WILL USE THE NRCC'S OWN DIRECT MAIL LIST TO TAP CONTRIBUTIONS THE LIST IS JOINTLY OWNED BY THE NRCC AND WYATT STEWART A DIRECT MAIL EXPERT AND MR. VANDER JAGT'S LONGTIME NRCC FINANCE DIRECTOR MR. STEWART ACQUIRED HIS STAKE IN THE LIST AND FORMED HIS OWN DIRECT MAIL FIRM WHILE AT THE NRCC AND OVER THE YEARS HIS CHARGES TO THE NRCC FOR FUND RAISING EXPENSES WERE SEVERAL TIMES HIS FINANCE DIRECTOR SALARY MR. STEWART THOUGH DENIES ANY SUGGESTION THAT HE WOULD HAVE A ROLE IN THE VANDER JAGT PAC THEY DON'T KNOW WHAT THEY ARE TALKING ABOUT HE SAYS THAT'S THE MOST RIDICULOUS THING I'VE EVER HEARD I'M PERSONALLY SHOCKED BUT REPRESENTATIVE GINGRICH WANTS ASSURANCE LATE YESTERDAY AFTER LEARNING OF THE NAME CHANGE HE GOT MR. VANDER JAGT'S PLEDGE THAT MR. VANDER JAGT WON'T RENT OR USE THE NRCC LIST PEACE AND AFFECTION REIGN IN THE FAMILY THE LEGISLATOR LATER QUIPPED REPRESENTATIVE GINGRICH ALSO IS ASKING MR. VANDER JAGT TO HEAD AN EFFORT TO RETIRE THE NRCC'S CURRENT THREE POINT SIX MILLION DOLLAR DEBT THOUGH HE ACKNOWLEDGES THAT SUCH AN EFFORT MIGHT CUT INTO MR. VANDER JAGT'S OWN FUND RAISING AND SPEAKING TIME BUT SINCE THE RED INK PILED UP ON HIS WATCH REPRESENTATIVE PAXON SAYS GUY WOULD BE PARTICULARLY APPROPRIATE IN HELPING US TO RETIRE THAT DEBT MUTUAL FUND SCORECARDS FOR U. S. GOVERNMENT BOND FUNDS PRINTED WEDNESDAY AND FOR GINNIE MAE FUNDS PRINTED THURSDAY SHOWED TOTAL RETURN PERFORMANCE SINCE DECEMBER THIRTY FIRST NINETEEN NINETY TWO RATHER THAN DECEMBER THIRTY FIRST NINETEEN NINETY THREE DUE TO A MISCALCULATION BY LIPPER ANALYTICAL SERVICES INCORPORATED THE TOTAL RETURN CALCULATIONS IN BOTH SCORECARDS FOR ONE MONTH TWELVE MONTHS AND FIVE YEARS WERE CORRECT AND ALL CALCULATIONS WERE BASED ON PERIODS ENDING JANUARY THIRTY FIRST NINETEEN NINETY FOUR CLIFFS DRILLING COMPANY SAID IT EXPECTS TO TAKE A FOURTH QUARTER CHARGE OF THREE POINT FIVE MILLION DOLLARS OR SEVENTY EIGHT CENTS A SHARE CLIFFS HAD PREVIOUSLY ANNOUNCED A FOURTH QUARTER CHARGE OF FIVE HUNDRED SEVENTY SEVEN THOUSAND DOLLARS OR THIRTEEN CENTS A SHARE RESULTING FROM AN ACCOUNTING PROVISION FOR NINETEEN NINETY FOUR TERMINATION OF CERTAIN CONTRACTS THE HOUSTON OIL SERVICES COMPANY SAID THE THREE POINT FIVE MILLION DOLLAR CHARGE RESULTS FROM A JUDGMENT AGAINST CLIFFS IN THE LAWSUIT INVOLVING DIAMOND M. ODECO OFFSHORE INCORPORATED IN THE YEAR EARLIER FOURTH QUARTER CLIFFS REPORTED A LOSS OF ONE POINT ONE MILLION DOLLARS OR FORTY FOUR CENTS A SHARE AFTER A ONE POINT FIVE MILLION DOLLAR CHARGE FROM THE WRITE DOWN OF OIL AND GAS PROPERTIES AFTER FOUR MONTHS OF NEGOTIATIONS WITH EIGHTEEN HEALTH MAINTENANCE ORGANIZATIONS ONE OF THE NATION'S LARGEST GROUP PURCHASERS OF HEALTH INSURANCE HAS SECURED AN AVERAGE ONE POINT ONE PERCENT PREMIUM REDUCTION FOR NINE HUNDRED TWENTY THOUSAND PUBLIC EMPLOYEES AND FAMILY MEMBERS THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM CALPERS WON THE ONE YEAR CONTRACTS YESTERDAY THE PROCESS AND ITS RESULT MAY BE SEEN AS A MODEL FOR CLINTON HEALTH CARE REFORM A LARGE PUBLIC HEALTH CARE PURCHASING AGENT SQUEEZING EVEN LOW COST PROVIDERS LIKE H. M. O.S INTO MAKING EXTRA SAVINGS BUT CALPERS'S SUCCESS MAY ALSO SHOW THAT AN ELABORATE GOVERNMENT BUREAUCRACY ISN'T NEEDED TO LOWER HEALTH CARE COSTS THE REDUCTION QUOTE SHOWS MANAGED COMPETITION CAN BRING DOWN THE COST OF HEALTH CARE QUOTE PARTICULARLY IN AREAS LIKE CALIFORNIA WHERE H. M. O.S ARE WELL DEVELOPED SAID ALAIN C. ENTHOVEN A PROFESSOR AT STANFORD UNIVERSITY'S GRADUATE SCHOOL OF BUSINESS AND A CALPERS ADVISORY COMMITTEE MEMBER COMPETITION WORKS NOT COMPULSION HE SAID CALPERS SAID IT HAS KEPT PREMIUM INCREASES OVER THE PAST THREE YEARS TO SIX POINT FOUR PERCENT COMPARED TO THE NATIONAL AVERAGE OF THIRTY POINT ONE PERCENT FOR THE NINETEEN NINETY FOUR TO NINETY FIVE CONTRACT YEAR WHEN THE RATE REDUCTION TAKES EFFECT CALPERS SAID ITS SAVINGS WILL BE ABOUT THREE HUNDRED TWENTY ONE MILLION DOLLARS WHILE NOT ALL THE CONTRACTS MET ITS DEMAND FOR A FIVE PERCENT RATE CUT CALPERS SAID IT HOPES TO ACHIEVE THAT GOAL IN THE NEXT SEVERAL YEARS CALPERS ONCE KNOWN AS A LANGUID AND NOT PARTICULARLY CHOOSY BUYER OF HEALTH CARE HAS RECAST ITSELF AS A TIGER IN RECENT YEARS IN NINETEEN NINETY ONE AFTER CALIFORNIA'S BUDGET CRISES CALPERS FROZE ITS CONTRIBUTIONS TO HEALTH CARE MAKING ITS H. M. O.S RESPONSIBLE FOR COST VARIATIONS LAST OCTOBER CALPERS DEMANDED THAT ITS EIGHTEEN H. M. O.S CUT HEALTH CARE PREMIUMS FIVE PERCENT EFFECTIVE AUGUST FIRST THE START OF THE NINETEEN NINETY FOUR TO NINETY FIVE CONTRACT YEAR IT CALLED THE DEMAND MODEST GIVEN CALIFORNIA'S STAGNANT ECONOMY BUT THAT DEMAND FOLLOWED TWO YEARS OF STRICT COST CONTAINMENT SO CALPERS'S DEMAND LEFT SOME H. M. O.S A LITTLE TESTY THEY'RE A NINE HUNDRED POUND GORILLA AND THEY KNOW IT GRUMBLED ONE H. M. O. NEGOTIATOR WHO ASKED NOT TO BE IDENTIFIED THEY DON'T HAVE TO BE REAL SOPHISTICATED THEY KNOW THE VOLUME THEY REPRESENT BOTTOM LINE IS THEY ARE HOLDING MOST OF THE CARDS ABOUT A THIRD OF THE H. M. O.S DOING BUSINESS WITH CALPERS OFFERED PREMIUM REDUCTIONS SAID TOM ELKIN THE AGENCY'S ASSISTANT EXECUTIVE OFFICER OTHERS WITH LOWER BASE RATES OR OLDER SICKER PATIENT POPULATIONS ASKED FOR QUOTE MODEST SINGLE DIGIT QUOTE PREMIUM RISES WHILE A FEW ARGUED FOR DOUBLE DIGIT INCREASES HE SAID THE LATTER GROUP GOT LITTLE SYMPATHY WE'RE OUT OF CASH MR. ELKIN SAID HE TOLD THEM AND WE CAN'T ENTERTAIN INCREASES OF THAT MAGNITUDE WE'D LIKE SOME SIGN THAT YOU CAN IN FACT MANAGE CARE AMONG THE KEY ISSUES MR. ELKIN SAID WERE THE PRICE OF PRESCRIPTION DRUGS SURGERIES AND ADMINISTRATIVE EXPENSES INCLUDING PROFIT MARGINS AND CONSULTANTS' FEES AS AN EXAMPLE HE NOTED THERE'S A THIRTY PERCENT DIFFERENCE BETWEEN WHAT ONE PLAN IS PAYING FOR DRUGS AND ANOTHER MR. ELKIN TOLD THE H. M. O.S THIS CAN BE CORRECTED BY BUYING IN BULK AND CHANGING VENDORS THEN PASSING ON THE SAVINGS IF THEY'D SUCCEEDED IN PUSHING US TO THE ABSOLUTE WALL WE'D HAVE SAID NO WE'RE NOT IN THE BUSINESS OF CHARITY WE'D HAVE GONE WITHOUT THEIR BUSINESS QUOTE SAID ONE HEALTH CARE OFFICER BUT THE ULTIMATUM NEVER OCCURRED MR. ELKIN CONCEDED THAT NEGOTIATIONS CAN GET A LITTLE LIVELY IF THE EXPECTATION IS MUCH HIGHER THAN WE CAN PAY IT GETS A LITTLE TENSE ON AVERAGE THOUGH WE GET GOOD COOPERATION AND IN THE END CALPERS RELENTED ON THE FIVE PERCENT ROLLBACK DEMAND AS MANY HAD PREDICTED MR. ELKIN SAID CALPERS WAS IMPRESSED BY THE EFFORTS OF KAISER PERMANENTE THE OAKLAND CALIFORNIA H. M. O. THAT CARES FOR THREE HUNDRED TWENTY THOUSAND CALPERS SUBSCRIBERS A YEAR AGO KAISER'S NORTHERN CALIFORNIA REGION CONSIDERED INCREASING ITS PREMIUMS SIX PERCENT FOR ALL ITS CUSTOMERS INCLUDING CALPERS INSTEAD IT LOOKED HARD AT RESULTS OF ITS COST CUTTING PROGRAMS AND RAISED PREMIUMS AN AVERAGE OF TWO PERCENT KAISER SPOKESMAN JERRY FLEMING SAID IT WASN'T SIMPLY PRODDING BY CALPERS THAT LED TO KAISER'S CHANGE OF HEART WE'RE DOING BETTER WITH OUR COST TARGETS THAN WE'D BUDGETED FOR HE SAID KAISER'S MOST POTENT COST CONTROLS ARE SIMPLE THINGS LOWERING HOSPITAL INPATIENT RATES SUBSTITUTING OUTPATIENT SURGERIES WHEN POSSIBLE AND AGGRESSIVELY KEEPING KAISER MEMBERS OUT OF MORE EXPENSIVE NON KAISER INSTITUTIONS AT THE SAME TIME THE SATISFACTION OF OUR MEMBERS WAS GOING UP SO WE KNEW THESE SAVINGS WEREN'T BECAUSE WE WERE SKIMPING ON CARE HE ADDED OTHER H. M. O.S SAID THEY CRACKED DOWN ON HIGH DIAGNOSTIC TEST PRICES CHARGED BY CERTAIN HOSPITALS TRYING TO OFFSET LOSSES ON INPATIENT BUSINESS H. M. O.S SAID THEY'RE ALSO TRYING TO LIMIT THE BUDGET HAVOC WROUGHT WHEN HOSPITALS BUY COSTLY NEW PSYCHIATRIC DRUGS QUOTE THEY'RE A SIGNIFICANT PIECE OF THE TOTAL PHARMACEUTICAL COST AND THE TREND HAS BEEN VERY STEEP QUOTE SAID ONE H. M. O. OFFICER ADDING THAT HIS GROUP PLANS MORE SEMINARS ON COST EFFECTIVE ALTERNATIVE DRUGS THE BOARD OF WESTLAND P. L. C. SAID YESTERDAY THAT IT HAS ADVISED SHAREHOLDERS TO REJECT THE QUOTE UNWELCOME QUOTE BID MADE TUESDAY BY G. K. N. P. L. C. WESTLAND IN LONDON SAID THE OFFER FAILS TO VALUE PROPERLY WESTLAND'S PROSPECTS AND COULD DEPRIVE ITS SHAREHOLDERS OF THE FULL BENEFITS ARISING FROM ANY SETTLEMENT IN A DISPUTE STEMMING FROM A COLLAPSED NINETEEN SEVENTY EIGHT WESTLAND JOINT VENTURE AGREEMENT WITH EGYPT SAUDI ARABIA THE UNITED ARAB EMIRATES AND QATAR TO DEVELOP HELICOPTERS IN EGYPT ON TUESDAY G. K. N. ANNOUNCED ITS INTENTION TO BUY THE SHARES OF WESTLAND THAT IT DOESN'T ALREADY OWN FOR THREE HUNDRED SIXTY SIX MILLION POUNDS FIVE HUNDRED THIRTY SIX POINT NINE MILLION DOLLARS MICHAEL C. GURY WAS NAMED VICE PRESIDENT PRODUCT MARKETING A NEW POST AT THIS MEDIA CONCERN'S B. B. C. LIONHEART TELEVISION UNIT IN THE U. S. MR. GURY FORTY ONE YEARS OLD WAS DIRECTOR OF COMMUNICATIONS LATIN AMERICA FOR INTERNATIONAL BUSINESS MACHINES CORPORATION SPECTRUM INFORMATION TECHNOLOGIES INCORPORATED FILED A THREE HUNDRED MILLION DOLLAR LAWSUIT AGAINST JOHN SCULLEY CHARGING HIM WITH BREACH OF CONTRACT MISMANAGEMENT AND THEFT OF TRADE SECRETS THE SUIT ALSO ALLEGES THAT MR. SCULLEY QUIT ON MONDAY ONLY AFTER FIRST SEEKING TO OUST SPECTRUM MANAGEMENT THEN DECIDING TO GO INTO BUSINESS FOR HIMSELF MR. SCULLEY INSISTS HE RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE BECAUSE HE WAS MISLED ABOUT THE COMPANY'S TROUBLES THE COMPLAINT FILED LATE YESTERDAY IN FEDERAL COURT IN BRIDGEPORT CONNECTICUT PORTRAYS MR. SCULLEY AS A DOUBLE DEALER WHO TRIED TO USE SPECTRUM TO HIS OWN PRIVATE BUSINESS ADVANTAGE BEFORE QUITTING AS EXPECTED SPECTRUM'S COUNTERPUNCH TO MR. SCULLEY'S ABRUPT RESIGNATION CLAIMS THAT HE WAS FULLY INFORMED ABOUT A SECURITIES AND EXCHANGE COMMISSION PROBE OF THE TINY MANHASSET N. Y. WIRELESS DATACOMMUNICATIONS COMPANY AND ABOUT SPECTRUM'S ACCOUNTING PROBLEMS WHICH LAST WEEK FORCED A RESTATEMENT OF EARNINGS IT FURTHER STATES THAT MR. SCULLEY COMMISSIONED AN INDEPENDENT QUOTE DUE DILIGENCE QUOTE REVIEW OF SPECTRUM'S FINANCES BEFORE SIGNING ON IN OCTOBER AND THAT THE REPORT OUTLINED THE ACCOUNTING PROBLEMS THE NEW LAWSUIT WHICH IS SEPARATE FROM A SUIT THAT MR. SCULLEY HAS FILED AGAINST SPECTRUM'S PRESIDENT PETER CASERTA ALSO SUGGESTS THAT MR. SCULLEY WAS AT ODDS WITH SPECTRUM'S MANAGERS ALMOST FROM THE TIME HE JOINED THE COMPANY AND THAT HE SOON TURNED TO AN OUTSIDE CONSULTANT ARJUN GUPTA TO PLOT THE COMPANY'S FUTURE A SPOKESWOMAN FOR MR. SCULLEY LABELED THE SPECTRUM LAWSUIT A COMPLETE WORK OF FICTION AND SAID HIS ATTORNEY HADN'T EVEN BEEN SERVED WITH THE LEGAL PAPERS SHE ALSO CONTENDED THAT THE COMPLAINT IS TACIT ADMISSION THAT SPECTRUM INSIDERS HAD MATERIAL NONPUBLIC INFORMATION THE EXISTENCE OF THE S. E. C. PROBE WHEN THEY CASHED IN OPTIONS AND REAPED A THIRTEEN MILLION DOLLAR PLUS COMBINED PROFIT WEEKS AFTER MR. SCULLEY JOINED THE FIRM MR. SCULLEY'S SUIT AGAINST MR. CASERTA IS FILED IN FEDERAL DISTRICT COURT IN NEW YORK THE LAWSUIT ARGUES ESSENTIALLY THAT MR. SCULLEY SHOPPED FOR COMPANY ACQUISITIONS DECIDED HE COULD MAKE MORE MONEY DOING THE DEALS FOR HIMSELF AND THEN SET A PLOT TO RESIGN YET ESCAPE LIABILITY FOR SHAREHOLDER DAMAGES WEEKS AFTER TAKING OVER MR. SCULLEY INDICATED HE WANTED TO IMPOSE HIS OWN BOARD AND MANAGEMENT TEAM THE SUIT STATES BUT HE QUICKLY DROPPED THAT EFFORT AND TRIED TO QUIT IN EARLY DECEMBER RELENTING AFTER THE COMPANY TOLD HIM HE WOULD BE LIABLE FOR DAMAGES IF SPECTRUM'S SHARE PRICE PLUNGED ON HIS DEPARTURE SO HE ADOPTED A SECRET STRATEGY TO DRIVE THE SHARE PRICE DOWN AND HIRE A NEW ACCOUNTING FIRM TO FIND FAULT WITH THE COMPANY TO GIVE HIM A PRETEXT TO FEIGN DISGUST AND RESIGN THE SUIT CONTENDS MR. SCULLEY DID INDEED CITE THE ACCOUNTING PROBLEMS AND OTHER MATTERS WHEN HE QUIT ON MONDAY SENDING COMPANY SHARES PLUMMETING BUT HE HAS NOW BEEN INCLUDED IN SHAREHOLDER LAWSUITS ANYWAY C. B. S. INCORPORATED REPORTED A THIRTY NINE PERCENT RISE IN FOURTH QUARTER EARNINGS ON THE STRENGTH OF ITS TELEVISION NETWORK WHICH POSTED ITS FIRST FOURTH QUARTER PROFIT SINCE NINETEEN EIGHTY FIVE C. B. S. SAID NET INCOME FOR THE QUARTER ROSE TO FORTY SIX POINT FOUR MILLION DOLLARS OR TWO DOLLARS AND SEVENTY SEVEN CENTS A SHARE FROM THIRTY THREE POINT THREE MILLION DOLLARS OR TWO DOLLARS AND FOURTEEN CENTS A SHARE A YEAR AGO SALES IN THE QUARTER ROSE SEVEN POINT SEVEN PERCENT TO ONE POINT OH FOUR BILLION DOLLARS FROM NINE HUNDRED SIXTY EIGHT POINT THREE MILLION DOLLARS REVENUE GROWTH AT THE TELEVISION NETWORK WAS AIDED BY HIGHER PRICING OF COMMERCIALS DURING THE PRIME EVENING HOURS AND BY NEW REVENUES FROM LATE SHOW WITH DAVID LETTERMAN WHICH MADE ITS DEBUT LAST AUGUST THE COMPANY SAID C. B. S. SAID THAT AT ITS TELEVISION STATIONS DIVISION THE SALES INCREASE FOR THE QUARTER WAS THE BEST QUARTERLY INCREASE FOR NINETEEN NINETY THREE HELPED MAINLY BY DOUBLE DIGIT GAINS AT STATIONS IN NEW YORK CHICAGO PHILADELPHIA AND MIAMI C. B. S. RADIO'S SALES ROSE SLIGHTLY LED BY GAINS AT THE DIVISION'S RADIO NETWORKS THE COMPANY'S SHARES WERE OFF SLIGHTLY FALLING TWO DOLLARS AND TWENTY FIVE CENTS TO CLOSE AT THREE HUNDRED ELEVEN DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING JOHN G. NELSON AN ANALYST AT BROWN BROTHERS HARRIMAN SAID EARNINGS FOR THE QUARTER WERE PROBABLY BELOW THE MORE THAN THREE DOLLARS A SHARE CONSENSUS HE ESTIMATED WAS HELD BY ANALYSTS ALTHOUGH REPORTED EARNINGS WERE LOWER THAN EXPECTATIONS QUOTE TAKING INTO ACCOUNT A COUPLE OF ONE TIME FACTORS UNDERLYING PROFITS WERE AS GOOD AS EXPECTED QUOTE HE SAID FOR THE YEAR C. B. S. REPORTED NET MORE THAN QUADRUPLED TO THREE HUNDRED TWENTY SIX POINT TWO MILLION DOLLARS OR TWENTY DOLLARS AND THIRTY NINE CENTS A SHARE FROM EIGHTY ONE MILLION DOLLARS OR FIVE DOLLARS AND TWENTY THREE CENTS A SHARE THE RESULTS BENEFITED FROM A NUMBER OF SPECIAL NONRECURRING ITEMS THAT TOTALED THREE DOLLARS AND EIGHTY CENTS A SHARE OR ABOUT FIFTY NINE POINT ONE MILLION DOLLARS C. B. S. ALSO RECORDED A GAIN OF ONE DOLLAR AND FIFTY THREE CENTS A SHARE OR THIRTY NINE POINT SIX MILLION DOLLARS BEFORE TAXES ON THE SALE OF MARKETABLE SECURITIES REVENUE FOR THE YEAR TOTALED THREE POINT FIVE ONE BILLION DOLLARS ABOUT FLAT WITH THE THREE POINT FIVE OH BILLION DOLLARS OF THE PREVIOUS YEAR LAURENCE A. TISCH C. B. S. CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY CONTINUES TO CAPITALIZE ON A NUMBER OF POSITIVE TRENDS INCLUDING GOOD AUDIENCE RATINGS IMPROVING ADVERTISER DEMAND AND COST CONTROL EXCLUDING THE EFFECT OF NINETEEN NINETY THREE'S SPECIAL ITEMS AND CAPITAL GAINS WE ARE CONFIDENT THAT THE COMPANY'S EXISTING BUSINESSES WILL PRODUCE GROWING PROFITS AND WILL GENERATE SUBSTANTIAL AMOUNTS OF FREE CASH FLOW MR. TISCH SAID PIER ONE IMPORTS INCORPORATED SAID IT EXPECTS EARNINGS FOR FISCAL NINETEEN NINETY FOUR WHICH ENDS FEBRUARY TWENTY SIXTH TO FALL TEN PERCENT TO FIFTEEN PERCENT BELOW ANALYSTS' ESTIMATES OF SEVENTY CENTS TO SEVENTY TWO CENTS A SHARE THE ANNOUNCEMENT WAS MADE AFTER THE MARKET HAD CLOSED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PIER ONE SHARES CLOSED AT NINE DOLLARS AND FIFTY CENTS UP TWELVE POINT FIVE CENTS THE IMPORT SPECIALTY RETAILER HAD REPORTED RECORD SALES OF NINETY SEVEN POINT TWO MILLION DOLLARS FOR THE FIVE WEEKS ENDED JANUARY FIRST UP ELEVEN POINT EIGHT PERCENT FROM A YEAR EARLIER BUT CLARK A. JOHNSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THAT SEVERE WEATHER CONDITIONS IN JANUARY HURT SALES AT MORE THAN SIXTY PERCENT OF THE COMPANY'S SIX HUNDRED THIRTY NINE STORES WITH THE PROBLEM CONTINUING INTO FEBRUARY SALES FOR THE FOUR WEEKS ENDING JANUARY TWENTY NINTH WERE ESSENTIALLY FLAT AT FORTY ONE POINT TWO MILLION DOLLARS MR. JOHNSON ALSO NOTED THAT TWENTY STORES IN CALIFORNIA WERE AFFECTED BY THE EARTHQUAKE IN LOS ANGELES MR. JOHNSON SAID THAT FORT WORTH TEXAS BASED PIER ONE EXPECTS TO RESUME POSITIVE SALES GROWTH QUOTE AFTER WINTER PASSES QUOTE DIME FINANCIAL CORPORATION SAID IT PLANS TO QUOTE INCREASE SUBSTANTIALLY QUOTE ITS RESERVES FOR LOAN LOSSES AND OTHER REAL ESTATE IT OWNS RESULTING IN AN ANTICIPATED FOURTH QUARTER LOSS OF TWENTY SIX MILLION DOLLARS DIME FINANCIAL THE WALLINGFORD CONNECTICUT HOLDING COMPANY FOR DIME SAVINGS BANK OF WALLINGFORD SAID THE RESERVES WILL BE TAKEN TO COVER SIGNIFICANT LOSSES THAT MAY RESULT FROM THE POSSIBLE BULK SALE OF NONPERFORMING LOANS AND FORECLOSED REAL ESTATE THIS YEAR THE COMPANY SAID IT EXPECTS THE ADDITIONAL RESERVES TO TOTAL ABOUT TWENTY NINE MILLION DOLLARS BUT THAT A FINAL DETERMINATION WON'T BE MADE UNTIL A CONTINUING PORTFOLIO EVALUATION IS COMPLETED THE EXPECTED QUARTERLY LOSS OF FIVE DOLLARS AND TWENTY CENTS A SHARE IS AGAINST YEAR EARLIER EARNINGS OF FOUR HUNDRED SIXTEEN THOUSAND DOLLARS OR NINE CENTS A SHARE THE ANTICIPATED NINETEEN NINETY THREE LOSS OF TWENTY SIX MILLION DOLLARS WILL REDUCE SHAREHOLDERS' EQUITY TO THIRTY NINE MILLION DOLLARS FROM ABOUT SIXTY FOUR MILLION DOLLARS THE COMPANY SAID ITS LEVERAGE CAPITAL RATIO MAY TEMPORARILY FALL BELOW THE SIX PERCENT LEVEL AGREED TO WITH REGULATORS IN FEBRUARY NINETEEN NINETY THREE BITTER SNOWY WEATHER IN THE MIDWEST AND NORTHEAST FAILED TO LIFT PETROLEUM FUTURES PRICES ON THE NEW YORK MERCANTILE EXCHANGE AS TRADERS STAYED FOCUSED ON BEARISH CRUDE INVENTORY REPORTS THE RESULT A SIXTY ONE CENT A BARREL PLUNGE IN MARCH CRUDE OIL FUTURES PRICES WHICH ALSO PUSHED MARCH HEATING OIL PRICES LOWER BY A PENNY A GALLON BOTH THE WEEKLY STATISTICS RELEASED LATE TUESDAY BY THE AMERICAN PETROLEUM INSTITUTE AND YESTERDAY'S REPORT FROM THE DEPARTMENT OF ENERGY SHOWED SIGNIFICANT BEARISH INCREASES IN THE LEVEL OF U. S. OIL STOCKS FOR THE WEEK ENDED FEBRUARY FOURTH THE A. P. I. NUMBERS PUT THE INCREASE AT FOUR POINT NINE EIGHT MILLION BARRELS THE D. O. E. SAID THE BUILDUP WAS THREE POINT SEVEN MILLION BARRELS MEANWHILE ADDING TO THE BEARISHNESS ON CRUDE THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CONTINUES TO BE SEEN AS UNLIKELY TO CUT OUTPUT AT ITS MARCH TWENTY FIFTH MEETING EVEN THOUGH A COUPLE OF SMALLER OPEC MEMBERS HAVE INDICATED A WILLINGNESS TO CUT SOME TRADERS SAY CRUDE PRICES HAVE APPARENTLY RECOVERED ENOUGH IN RECENT WEEKS THAT SAUDI ARABIA THE GROUP'S LINCHPIN COULD DECIDE TO MAINTAIN OUTPUT AT CURRENT LEVELS CRUDE ALSO TOOK A HIT YESTERDAY FROM A WEAKNESS IN THE MARKET FOR NORTH SEA BRENT IN EUROPE REFINERIES THERE HAVE REPORTEDLY STARTED SHUTTING DOWN FOR SCHEDULED MAINTENANCE STILL IT WAS TOUGH FOR TRADERS AND ANALYSTS WATCHING WEATHER REPORTS IN MUCH OF THE U. S. TO FIGURE OUT WHY PETROLEUM PRICES WERE SO WEAK ESPECIALLY GIVEN THAT THE SAME INDUSTRY AND GOVERNMENT REPORTS THAT SHOWED A BUILDUP IN CRUDE INVENTORIES SHOWED DRAMATIC DECREASES IN THE NATION'S DISTILLATE HEATING OIL AND DIESEL FUEL SUPPLIES THE A. P. I. NUMBERS PUT DISTILLATE STOCKS FOUR POINT TWO ONE MILLION BARRELS LOWER WHILE THE D. O. E. REPORT SAID DISTILLATE STOCKS FELL A WHOPPING EIGHT POINT FOUR MILLION BARRELS NATIONWIDE GIVEN THOSE STATISTICS AND THE WEATHER QUOTE IT'S A BAFFLEMENT HOW HEATING OIL CAN BE SO WEAK QUOTE SAID ANDREW DICKSON WITH GSC ENERGY CORPORATION IN ATLANTA CRUDE IS REALLY WEIGHING ON THE MARKET MARCH CRUDE SETTLED AT FOURTEEN DOLLARS AND SIXTY CENTS A BARREL WELL BELOW THE PSYCHOLOGICALLY IMPORTANT FIFTEEN DOLLAR LEVEL ONCE IT WENT BELOW FIFTEEN DOLLARS CRUDE JUST SENT A CHILL OVER PRODUCTS MR. DICKSON SAID MARCH HEATING OIL FELL TO FORTY NINE POINT FOUR OH CENTS A GALLON DOWN ONE POINT ONE SEVEN CENTS MARCH GASOLINE WAS OFF EVEN MORE ONE POINT THREE TWO CENTS TO FORTY THREE POINT THREE FIVE CENTS A GALLON EVEN NATURAL GAS WHICH HAS BEEN SOMEWHAT IMMUNE TO CRUDE'S PRICE SLIDES LOST FIVE POINT THREE CENTS ON THE MARCH CONTRACTS TO CLOSE AT TWO POINT THREE FIVE EIGHT DOLLARS PER MILLION BRITISH THERMAL UNITS IN FACT SOME MARKET OBSERVERS ARE WORRIED THAT THE TRUE WEAKNESS IN CRUDE IS BEING MASKED SOMEWHAT BY THE WEATHERRELATED DEMAND FOR HEATING OIL MR. DICKSON SAID SOME U. S. REFINERS ARE TRYING TO POSTPONE MAINTENANCE BECAUSE HEATING OIL IS VERY PROFITABLE RIGHT NOW THE A. P. I. AND D. O. E. REPORTS BEAR THAT OUT BOTH SHOWED INCREASES IN REFINERY OPERATING RATES EVEN THOUGH MANY EXPECTED RATES TO ALREADY BE DECLINING FOR SEASONAL MAINTENANCE MR. DICKSON AND OTHER MARKET PARTICIPANTS SAY THAT ONCE THOSE REFINERIES DO START TAKING CARE OF MAINTENANCE REQUIREMENTS CRUDE INVENTORIES WILL BUILD MORE PUTTING MORE PRESSURE ON PRICES GRAINS AND SOYBEANS PRICES ROSE IN A DAY OF TECHNICALLY INSPIRED BUYING ANTICIPATING A PERIOD OF SEASONAL STRENGTH FOR U. S. GRAIN MARKETS AT THE CHICAGO BOARD OF TRADE WHEAT FOR MARCH DELIVERY WAS UP SIX POINT FIVE OH CENTS TO THREE POINT SEVEN FIVE SEVEN FIVE DOLLARS A BUSHEL MARCH CORN ROSE FOUR CENTS TO TWO POINT NINE FIVE FIVE OH DOLLARS A BUSHEL AND MARCH SOYBEANS WERE UP FOUR CENTS TO SIX POINT SEVEN EIGHT FIVE OH DOLLARS A BUSHEL MID FEBRUARY IS TRADITIONALLY A PERIOD OF RISING PRICES AT THE C. B. O. T.'S GRAIN MARKET AND TRADERS MAY HAVE BEEN ANTICIPATING THE PERIOD BY BIDDING PRICES HIGHER SAID DANIEL W. BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE COMPANY CHICAGO MOREOVER MR. BASSE SAID PEOPLE ARE CONCERNED A BIT ABOUT THE HEAVY SNOWS WE'VE RECEIVED AND FLOODING THAT COULD RESULT WITH SOIL MOISTURE ALREADY SATURATED PRECIOUS METALS PRECIOUS METALS PRICES CONTINUED TO WORK THEIR WAY HIGHER AFTER LAST WEEK'S SHARP SELL OFF AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY WAS UP ONE DOLLAR AND SIXTY CENTS TO THREE HUNDRED EIGHTY FIVE DOLLARS AND SEVENTY CENTS AN OUNCE WHILE THE PRICE OF THE ACTIVELY TRADED SILVER FUTURES CONTRACT ROSE SEVEN CENTS TO FIVE DOLLARS AND THIRTY FOUR CENTS AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE THE APRIL PLATINUM FUTURES CONTRACT CLIMBED TWO DOLLARS AND TEN CENTS TO THREE HUNDRED NINETY THREE DOLLARS AND SEVENTY CENTS AN OUNCE ANALYSTS SAID GOLD REMAINS LOCKED IN A TIGHT TRADING RANGE OF ABOUT THREE HUNDRED EIGHTY DOLLARS AN OUNCE TO THREE HUNDRED NINETY DOLLARS AN OUNCE SUPPORTED ON THE LOW END OF THE RANGE BY PHYSICAL DEMAND FROM JEWELRY MAKERS AND OTHERS BUT ABANDONED BY THESE SAME BUYERS WHEN PRICES RISE ABOVE THREE HUNDRED NINETY DOLLARS AN OUNCE SENTIMENT IMPROVED IN THE BATTERED BOND MARKET YESTERDAY AS TRADERS GAVE THE GOVERNMENT'S AUCTION OF NEW TEN YEAR NOTES A DECENT RECEPTION THE BENCHMARK THIRTY YEAR TREASURY BOND ROSE MORE THAN ONE HALF POINT OR MORE THAN FIVE DOLLARS AND ZERO CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY SEVEN AND TWENTY EIGHT THIRTY SECONDS ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO SIX POINT FOUR OH PERCENT FROM SIX POINT FOUR FIVE PERCENT ON TUESDAY THE IMPROVEMENT IN PRICES YESTERDAY BROKE A FOUR DAY LOSING STREAK THAT SNOWBALLED WHEN THE FEDERAL RESERVE PUSHED SHORT TERM INTEREST RATES SLIGHTLY HIGHER LAST WEEK QUOTE THE AUCTION WENT REASONABLY WELL QUOTE SAID MARK GRANT MANAGING DIRECTOR OF FIXED INCOME AT JOSEPTHAL LYON AND ROSS A NEW YORK INVESTMENT BANKING FIRM IT WENT A LOT BETTER THAN THE DEALERS ON WALL STREET WERE EXPECTING THE TREASURY DEPARTMENT'S TWELVE BILLION DOLLAR OFFERING OF TEN YEAR NOTES WAS THE HIGHLIGHT OF AN OTHERWISE UNEVENTFUL SESSION THE TREASURY AWARDED THE TEN YEAR NOTES AT AN AVERAGE YIELD OF FIVE POINT NINE TWO PERCENT WITH A HIGH YIELD OF FIVE POINT NINE THREE PERCENT THE COUPON WAS SET AT FIVE POINT EIGHT SEVEN FIVE PERCENT GOING INTO THE AUCTION TRADERS HAD FRETTED THAT DEMAND FOR THE TEN YEAR NOTES WOULD BE WEAK WITH THE THIRTY YEAR BOND AUCTION STILL AHEAD TODAY AND THE PRODUCER PRICE INDEX DATA DUE TOMORROW THEY REASONED THAT FEW INVESTORS WOULD BE LIKELY TO VENTURE OUT OF THEIR FOXHOLES IN FACT THEY WERE RIGHT BUT SUFFICIENT DEMAND EMERGED FROM ARBITRAGE TRADES AND FROM DEALERS COVERING SHORTS THAT THE AUCTION WENT FAIRLY WELL IN A SHORT SALE A TRADER BETS THAT PRICES WILL FALL BY SELLING BORROWED SECURITIES IN THE HOPES OF BEING ABLE TO REPLACE THEM AT A LOWER PRICE AND POCKETING THE DIFFERENCE YOU WOULD HAVE THOUGHT THAT THE TEN YEAR WAS GOING TO BE THE UGLY DUCKLING BUT IT TURNED OUT TO BE A BIT OF A CINDERELLA STORY SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT S. G. WARBURG THE TEN YEAR NOTE WENT FAIRLY WELL MR. GRANT SAYS HE THINKS THE ELEVEN BILLION DOLLAR AUCTION OF THIRTY YEAR BONDS WILL MEET WITH STRONG DEMAND AND GARNER A YIELD BETWEEN SIX POINT FOUR FIVE PERCENT AND SIX POINT FIVE OH PERCENT BUT WORRIES ABOUT THE JANUARY PRODUCER PRICE INDEX WHICH IS A POPULAR MEASURE OF INFLATION COULD DAMP ENTHUSIASM SAYS MR. GRANT MANY ECONOMISTS EXPECT THE PRICE INDEX TO POST AN INCREASE OF ZERO POINT THREE PERCENT WHEN THE VOLATILE FOOD AND ENERGY SECTORS ARE EXCLUDED BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN AT YESTERDAY'S AUCTION THE BID COVER RATIO WHICH IS A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS RECEIVED AND THOSE ACCEPTED CAME IN NEAR AVERAGE AT TWO POINT FIVE EIGHT TO ONE NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT BIDS PLACED FROM OUTSIDE THE WALL STREET DEALER COMMUNITY WERE ON THE SOFT SIDE AT FOUR HUNDRED SIXTY SIX MILLION DOLLARS ALTHOUGH THE RESULTS WEREN'T STELLAR TRADERS SAID THEY HAD TO BE LOOKED AT IN THE CONTEXT OF THE BEARISH TONE IN THE MARKET IN THE LAST FEW DAYS THERE WAS A GOOD BID FOR THE TEN YEAR SAID PAUL MCCORMACK MANAGER OF GOVERNMENT SECURITIES TRADING AT CHASE SECURITIES TODAY'S THIRTY YEAR BOND AUCTION ISN'T EXPECTED TO POSE MUCH OF A PROBLEM FOR THE MARKET WITH THE TREASURY DEPARTMENT HAVING SCALED BACK THE AMOUNT OF THIRTY YEAR SECURITIES IT SELLS AND BONDS ONLY BEING SOLD TWICE A YEAR TRADERS EXPECT SOLID DEMAND FOR THE ISSUE AT THE SAME TIME ANALYSTS SAY THE BOND MARKET IS PROBABLY ALREADY PRICED FOR BAD NEWS FROM THE P. P. I. MOST ECONOMISTS ARE FORECASTING A ZERO POINT FOUR PERCENT RISE IN THE OVERALL P. P. I. AND A ZERO POINT THREE PERCENT GAIN ONCE THE FREQUENTLY VOLATILE FOOD AND ENERGY COMPONENTS ARE FACTORED OUT WE BELIEVE THAT INSTITUTIONAL INVESTORS HAVE STAYED ON THE SIDELINES DURING THIS REFUNDING AND WE ALSO BELIEVE THE MARKET HAS PRICED IN A ZERO POINT SIX PERCENT INCREASE IN THE P. P. I. SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ QUOTE SO CUSTOMERS HAVE CASH TO BE INVESTED AND THAT CASH WILL BE INVESTED FOLLOWING THE P. P. I. FRIDAY QUOTE 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 NOTES ARE DATED FEBRUARY FIFTEENTH AND MATURE FEBRUARY FIFTEENTH TWO THOUSAND FOUR NEXTEL COMMUNICATIONS INCORPORATED APPEARED TO FIND GOOD INVESTOR DEMAND WHILE RAISING SEVEN HUNDRED MILLION DOLLARS IN A JUNK BOND OFFERING THAT WAS PRICED LATE YESTERDAY TRADING IN THE INVESTMENT GRADE MARKET WAS LIGHT WITH PRICES FOLLOWING TREASURYS UP ABOUT ONE HALF POINT TRADING WAS ALSO SLOW IN THE JUNK BOND MARKET WITH PRICES UNCHANGED HOWEVER BONDS OF U. S. AIR INCORPORATED TRADED DOWN WHILE THE BONDS OF N. L. INDUSTRIES INCORPORATED AND VENTURE HOLDINGS TRUST ROSE NEXTEL'S OFFERING WENT VERY VERY WELL SAID AN OFFICIAL AT LEAD UNDERWRITER MERRILL LYNCH WHO NOTED THAT THE PROCEEDS FROM THE OFFERING WERE INCREASED FROM AN ORIGINALLY PLANNED FOUR HUNDRED MILLION DOLLARS THE FACE VALUE OF THE OFFERING WAS ONE POINT ONE THREE BILLION DOLLARS NEXTEL PROVIDES SPECIALIZED MOBILE RADIO NETWORKS FOR TAXI CABS PLUMBERS AND TRUCKERS ACROSS THE COUNTRY NEXTEL SOLD TEN YEAR SENIOR REDEEMABLE DISCOUNT NOTES AT SIXTY TWO POINT ONE FOUR THREE TO YIELD NINE POINT SEVEN FIVE PERCENT THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND NO INTEREST WILL BE PAID DURING THAT TIME NEXTEL PUSHED UP THE EXPECTED YIELD OF THE NOTES TO COMPENSATE FOR THE DEAL'S LARGE SIZE RISING INTEREST RATES IN THE TREASURY MARKET ALSO CONTRIBUTED TO THE DECISION TO BOOST THE YIELD FROM ITS ORIGINAL NINE POINT THREE SEVEN FIVE PERCENT LEVEL SYNDICATE OFFICIALS SAID WHILE THERE HAS BEEN STRONG INTEREST IN SPECIALIZED MOBILE RADIO NETWORKS SOME MARKET WATCHERS ARE SKEPTICAL ABOUT THE INDUSTRY'S OUTLOOK THESE COMPANIES HAVE A LOT OF PROMISE BUT NOT A LOT OF MONEY GENERATED ONE SYNDICATE OFFICIAL SAID THERE'S NOT A LOT OF FAVOR TOWARD TECHNOLOGY INVESTMENTS RIGHT NOW THERE'S A KIND OF TECH WRECK GOING ON IN THE EQUITY AND DEBT MARKETS IN THE JUNK BOND MARKET THE PRICE OF U. S. AIR BONDS DROPPED ON NEWS THAT THE AIRLINE IS SLASHING RATES BY AS MUCH AS FIFTY PERCENT ON SOME EAST COAST ROUTES U. S. AIR'S TEN PERCENT COUPON GUARANTEED SENIOR NOTES MATURING IN TWO THOUSAND THREE DROPPED ONE POINT SEVEN FIVE POINTS OR SEVENTEEN DOLLARS AND FIFTY CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY EIGHT THE YIELD ROSE FROM TEN POINT OH THREE PERCENT TO TEN POINT THREE OH PERCENT TWO UNITS OF NORTHWEST AIRLINES CORPORATION HAVE BEGUN MARKETING NEARLY FOUR HUNDRED MILLION DOLLARS IN DEBT SECURITIES IN THE COMPANY'S FIRST RETURN TO FINANCIAL MARKETS SINCE A NEAR BRUSH LAST SUMMER WITH BANKRUPTCY THE DEBT OFFERINGS ARE DESIGNED TO SET A POSITIVE TONE AHEAD OF NORTHWEST AIRLINES'S PLANNED INITIAL PUBLIC STOCK OFFERING AS WELL AS A JUNK BOND SALE BY ITS OPERATING UNIT NORTHWEST AIRLINES INCORPORATED NEXT MONTH THOSE TWO TRANSACTIONS WILL TOTAL NEARLY ONE BILLION DOLLARS THE EARLY RESPONSE BY INVESTORS HAS BEEN POSITIVE ACCORDING TO PERSONS FAMILIAR WITH THE TRANSACTION IT'S A SIGN OF CONFIDENCE IN THE FINANCIAL MARKETS AND CONFIDENCE BEGETS MORE CONFIDENCE SAID GLENN ENGEL AN EQUITY ANALYST AT GOLDMAN SACHS THE DEBT OFFERINGS PROVIDE FINANCING FOR THE NATION'S FOURTH LARGEST AIRLINE AT ATTRACTIVE RATES AND BOOST ITS LIQUIDITY THE ANALYST ADDED GOLDMAN SACHS ISN'T INVOLVED IN THE SECURITIES SALE HOWEVER THE OFFERINGS ARE ONLY A FIRST STEP IN NORTHWEST'S EFFORTS TO REDUCE ITS LARGE DEBT BURDEN WHICH TOTALS ABOUT FOUR POINT FIVE BILLION DOLLARS INVESTOR CONFIDENCE HAS RISEN AS THE AIRLINE HAS POSTED TWO CONSECUTIVE PROFITABLE QUARTERS THE NORTHWEST SUBSIDIARIES CURRENTLY ARE MARKETING A TWO HUNDRED FORTY THREE MILLION DOLLAR STRUCTURED AIRCRAFT FINANCE TRANSACTION AND A ONE HUNDRED FIFTY MILLION DOLLAR STRUCTURED ACCOUNTS RECEIVABLES FINANCING ACCORDING TO A PERSON CLOSE TO THE TRANSACTION PROCEEDS FROM THE MINNEAPOLIS BASED AIRLINE'S FINANCINGS ARE EXPECTED TO BE USED PRIMARILY TO PAY DOWN DEBT AT NORTHWEST WHICH WAS TAKEN PRIVATE IN NINETEEN EIGHTY NINE IN A THREE POINT SIX FIVE BILLION DOLLAR LEVERAGED BUYOUT COMPANY OFFICIALS DECLINED TO COMMENT MUNICIPAL BOND SELLERS TOOK A BREATHER YESTERDAY AFTER DUMPING MUNIS FOR FOUR CONSECUTIVE SESSIONS AND PRICES WERE NARROWLY MIXED WITH THE TAX EXEMPT BOND MARKET JITTERY ABOUT THE TREASURY'S DEBT AUCTIONS AND THE COMING PRODUCER PRICE INDEX REPORT SOME MUNI SPECIALISTS WERE RELUCTANT TO READ A LOT INTO THE SESSION'S SCATTERED GAINS IN PRIMARY DEALINGS EARLIER YESTERDAY A MERRILL LYNCH GROUP WON BOSTON'S EIGHTY FIVE MILLION DOLLARS OF REFUNDING GENERAL OBLIGATION BONDS WITH A BID SETTING THE TRUE INTEREST COST AT FOUR POINT EIGHT ONE NINE TWO PERCENT YIELDS RANGE FROM TWO POINT FOUR OH PERCENT IN JULY NINETEEN NINETY FOUR TO FIVE POINT ONE FIVE PERCENT IN TWO THOUSAND ELEVEN MORTGAGES MADE LATE AFTERNOON GAINS WITH U. S. TREASURYS YESTERDAY AFTER THE SUCCESSFUL AUCTION OF A NEW TREASURY TEN YEAR NOTE WHICH ACTS AS A PRICE BENCHMARK FOR THIRTY YEAR MORTGAGE SECURITIES PRICES HAD BEEN SLIGHTLY BETTER THROUGHOUT EARLY TRADING BUT IT WAS THE DECENT RECEPTION WALL STREET GRANTED THE NOTE SALE THAT MADE FOR THE BRUNT OF THE GAINS IN BOTH MORTGAGES AND TREASURYS MOST OF THE DAY'S TRADING THOUGH TOOK PLACE BETWEEN DEALERS RETAIL INVESTORS WEREN'T ACTIVE SAYS ALLEN SIEGAL HEAD OF MORTGAGE BACKED SECURITIES TRADING AT C. S. FIRST BOSTON AMONG PRICES OF SIX POINT FIVE PERCENT SECURITIES FOR MARCH DELIVERY GINNIE MAES WERE UP TWELVE THIRTY SECONDS AT NINETY EIGHT AND TWENTY FOUR THIRTY SECONDS FREDDIE MAC GOLDS WERE AT NINETY EIGHT AND TWENTY EIGHT THIRTY SECONDS AND FANNIE MAES CHANGED HANDS AT NINETY EIGHT AND TWENTY TWO THIRTY SECONDS MORE PROOF OF AN EBBING HOMEOWNER REFINANCING CAME FROM THE FEDERAL NATIONAL MORTGAGE ASSOCIATION THE AGENCY REPORTED THAT ITS JANUARY COMMITMENTS TO PURCHASE MORTGAGES FELL TO SIX POINT TWO BILLION DOLLARS IN JANUARY FROM EIGHT POINT FIVE BILLION DOLLARS IN DECEMBER WHILE MORTGAGE PURCHASES FELL TO SEVEN POINT NINE BILLION DOLLARS IN JANUARY FROM TWELVE POINT ONE BILLION DOLLARS IN DECEMBER THOMAS T. VOGEL JUNIOR CONTRIBUTED TO THIS ARTICLE BETHLEHEM STEEL CORPORATION AN OFFERING OF TWELVE MILLION COMMON SHARES VIA SALOMON BROTHERS INCORPORATED J. P. MORGAN SECURITIES INCORPORATED AND MORGAN STANLEY AND COMPANY STYLES ON VIDEO INCORPORATED A PROPOSED OFFERING OF UP TO ONE MILLION COMMON SHARES TRANSTEXAS GAS CORPORATION AN INITIAL OFFERING OF FIVE MILLION COMMON SHARES VIA JEFFERIES AND COMPANY VIRGIN INTERACTIVE ENTERTAINMENT P. L. C. AN OFFERING OF ONE MILLION EIGHT HUNDRED FIFTY THOUSAND AMERICAN DEPOSITARY SHARES OR ADS EACH ADS REPRESENTING ONE ORDINARY SHARE OF VIRGIN INTERACTIVE VIA C. S. FIRST BOSTON AND PIPER JAFFRAY INCORPORATED DEMAND FOR TRUCKS IN EUROPE IS EXPECTED TO RECOVER IN NINETEEN NINETY FOUR AFTER A MAJOR SLUMP IN NINETEEN NINETY THREE THE TRUCK BUILDING DIVISION OF FRENCH STATE CONTROLLED AUTO GROUP RENAULT S. A. SAID RENAULT VEHICULES INDUSTRIELS SAID THE FRENCH MARKET COULD GROW BY FOURTEEN PERCENT OR FOUR THOUSAND ONE HUNDRED VEHICLES THIS YEAR TO ABOUT THIRTY TWO THOUSAND VEHICLES AFTER PLUNGING BY TWENTY ONE PERCENT IN NINETEEN NINETY THREE THE OVERALL EUROPEAN MARKET FOR TRUCKS OF MORE THAN FIVE TONS FELL TWENTY TWO PERCENT LAST YEAR AND ALL COUNTRIES APART FROM THE U. K. WHERE TRUCK SALES ROSE FIFTEEN PERCENT WERE AFFECTED DESPITE THE WEAK DEMAND RVI'S EUROPEAN MARKET SHARE IMPROVED TO NINE POINT THREE PERCENT LAST YEAR FROM NINE POINT ONE PERCENT IN NINETEEN NINETY TWO BOOSTED BY GROWTH IN FRANCE VIRGIN INTERACTIVE ENTERTAINMENT P. L. C. A DEVELOPER OF VIDEO GAME AND ENTERTAINMENT SOFTWARE SAID IT FILED FOR AN INITIAL PUBLIC OFFERING OF ONE MILLION EIGHT HUNDRED FIFTY THOUSAND AMERICAN DEPOSITARY SHARES VIRGIN INTERACTIVE IN IRVINE CALIFORNIA IS CONTROLLED BY BRITISH AIRLINE EXECUTIVE RICHARD BRANSON AND BRANSON FAMILY TRUSTS WHICH TOGETHER WOULD OWN SIXTY TWO PERCENT OF THE COMPANY AFTER THE OFFERING OTHER MAJOR HOLDERS INCLUDE BLOCKBUSTER ENTERTAINMENT CORPORATION WHICH WOULD HOLD TWENTY PERCENT AND HASBRO INCORPORATED WHICH WOULD OWN SIXTEEN PERCENT VIRGIN INTERACTIVE'S SOFTWARE PRODUCTS ARE USABLE IN SUCH CONSUMER HARDWARE SYSTEMS AS NINTENDO AND SEGA AND WITH PERSONAL COMPUTER AND C. D. ROM SYSTEMS OF THE SHARES OFFERED ONE MILLION WILL BE SOLD BY VIRGIN INTERACTIVE AND EIGHT HUNDRED FIFTY THOUSAND BY CERTAIN SHAREHOLDERS THE UNDERWRITING SYNDICATE FOR THE OFFERING IS MANAGED BY C. S. FIRST BOSTON AND PIPER JAFFRAY INCORPORATED VIRGIN INTERACTIVE SAID IT APPLIED FOR TRADING ON THE NASDAQ STOCK MARKET WMX TECHNOLOGIES INCORPORATED STUNNED INVESTORS WITH ITS SECOND STRAIGHT QUARTER OF LOWER THAN ANTICIPATED PROFIT AND INDICATED MORE TROUBLE LIES AHEAD SENDING THE WASTE CONCERN'S SHARES PLUNGING ELEVEN POINT FIVE PERCENT ON VOLUME OF NEARLY FIFTEEN MILLION SHARES IN WRITTEN ANNOUNCEMENTS AND IN A LENGTHY CONFERENCE CALL WITH ANALYSTS AND INVESTORS WMX ACKNOWLEDGED IN FAR STRONGER LANGUAGE THAN IT PREVIOUSLY HAD THAT ITS PROBLEMS GO BEYOND THE RECENT RECESSION IT ALSO ACKNOWLEDGED THAT ITS CREDIBILITY WITH WALL STREET HAS BEEN DAMAGED AND SAID IT HOPES TO PUT AN END TO NEGATIVE EARNINGS SURPRISES SHARES IN WMX BASED IN OAK BROOK ILLINOIS AND FORMERLY KNOWN AS WASTE MANAGEMENT INCORPORATED FELL THREE DOLLARS AND TWENTY FIVE CENTS TO TWENTY FIVE DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CLIPPING ONE POINT FIVE SEVEN BILLION DOLLARS FROM THE COMPANY'S STOCK MARKET VALUE THE COMPANY ANNOUNCED TUESDAY NIGHT THAT FOURTH QUARTER PROFIT SKIDDED ELEVEN PERCENT TO ONE HUNDRED SIXTY TWO POINT NINE MILLION DOLLARS OR THIRTY FOUR CENTS A SHARE FROM ONE HUNDRED EIGHTY TWO POINT EIGHT MILLION DOLLARS OR THIRTY SEVEN CENTS A SHARE A YEAR EARLIER YESTERDAY'S TRADING WAS LIKE A REPLAY OF WHAT HAPPENED OCTOBER TWENTIETH WHEN WMX SHARES PLUNGED SEVENTEEN PERCENT TO TWENTY FOUR DOLLARS AFTER THE COMPANY POSTED LOWER THAN EXPECTED THIRD QUARTER RESULTS SINCE THEN SUPPORT FOR THE WIDELY OWNED STOCK HAS SLOWLY BEEN REBUILT AND IN RECENT WEEKS SEVERAL ANALYSTS HAVE ENTHUSIASTICALLY RECOMMENDED WMX SHARES ONLY TO BE EMBARRASSED BY YESTERDAY'S BAD NEWS THE FUNDAMENTAL PROBLEM IN THE TRASH BUSINESS REMAINS A GLUT OF DISPOSAL CAPACITY IN MANY MARKETS LEADING TO CUTTHROAT PRICING AS MUCH AS ANALYSTS HAVE HOPED THAT ECONOMIC RECOVERY WOULD IMPROVE THE INDUSTRY'S OUTLOOK BY INCREASING WASTE VOLUMES SO MUCH EXCESS DUMP AND INCINERATOR CAPACITY EXISTS IN SOME AREAS THAT PRICES COULD FALL FURTHER RATHER THAN REBOUND DEAN L. BUNTROCK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WMX SAID THE RAVAGES OF RECESSION HAD QUOTE MASKED TO A CERTAIN EXTENT SOME IMPORTANT STRUCTURAL CHANGES QUOTE ALSO HURTING THE COMPANY'S BUSINESS PREVIOUSLY MR. BUNTROCK HAD TOLD INVESTORS THAT MOSTLY WHAT THE COMPANY NEEDED WAS AN ECONOMIC RECOVERY ANALYSTS HAD EXPECTED FOURTH QUARTER EARNINGS TO RISE ALEXANDER BROWN AND SONS' HUGH F. HOLMAN WHO UPGRADED THE STOCK TO A STRONG BUY ON JANUARY TWENTY FIRST HAD PROJECTED THIRTY EIGHT CENTS A SHARE VISHNU SWARUP OF PRUDENTIAL SECURITIES LAST MONTH CALLING THE PURCHASE OF WMX OUR SINGLE BEST IDEA ALSO THOUGHT THIRTY EIGHT CENTS HOPING TO AVOID FUTURE DISAPPOINTMENTS WMX SAID ITS TARGET FOR NINETEEN NINETY FOUR IS NOW PER SHARE PROFIT GROWTH OF FIVE PERCENT TO TEN PERCENT JAMES KOENIG WMX'S CHIEF FINANCIAL OFFICER SAID OF THE ANALYSTS' OVERLY OPTIMISTIC PROJECTIONS PART OF OUR PROBLEM IS OUR INTERNAL EXPECTATIONS HAVE BEEN AGGRESSIVE BY ANNOUNCING A NINETEEN NINETY FOUR TARGET RANGE WE ARE TRYING TO GET EVERYONE ON THE SAME PAGE THIS IS THE BEST INFORMATION WE HAVE QUOTE AS ONE OF THE GREAT GROWTH STOCKS OF THE NINETEEN SEVENTIES AND NINETEEN EIGHTIES WMX ISN'T ACCUSTOMED TO DISCOURAGING ENTHUSIASM BUT THAT'S NOW ONE OF MR. KOENIG'S JOBS THUS DESPITE HOPEFUL SIGNS ON PRICING MENTIONED BY MR. SWARUP MR. KOENIG SAID PRICES OVERALL FELL ONE PERCENT IN THE FOURTH QUARTER AND WHILE MR. HOLMAN WAS SPECULATING THAT THE LOS ANGELES EARTHQUAKE MIGHT RIVAL LAST YEAR'S LUCRATIVE CLEANUP WORK FROM HURRICANE ANDREW MR. KOENIG SAID HE SEES NO GAIN FROM THE QUAKE WMX ALSO SAID FIRST QUARTER PER SHARE PROFIT WOULD FALL TO THIRTY FOUR CENTS FROM FORTY ONE CENTS A YEAR AGO WHEN NET INCOME WAS ONE HUNDRED NINETY NINE POINT THREE MILLION DOLLARS THE DECLINES IN THE FOURTH AND FIRST QUARTERS PARTLY STEM FROM A REORGANIZATION EFFORT IN THE NORTH AMERICAN TRASH COLLECTION AND DISPOSAL BUSINESS THE COMPANY SAID ANALYSTS SAID THE COMPANY'S ANNOUNCED TARGET SEEMS TO INDICATE THAT WALL STREET PROFIT PROJECTIONS FOR SOME OF WMX'S MAJORITY OWNED UNITS CHEMICAL WASTE MANAGEMENT INCORPORATED WHEELABRATOR TECHNOLOGIES INCORPORATED WASTE MANAGEMENT INTERNATIONAL P. L. C. AND RUST INTERNATIONAL INCORPORATED MAY BE TOO HIGH MR. KOENIG WOULDN'T COMMENT ON THAT BUT SHARPLY REDUCED CAPITAL SPENDING INCLUDING FOR ACQUISITIONS TO A PLANNED ONE POINT FIVE FIVE BILLION DOLLARS THIS YEAR FROM ABOUT TWO POINT FIVE BILLION DOLLARS IN NINETEEN NINETY THREE WILL MAKE GROWTH HARDER TO COME BY IN THOSE BUSINESSES AS WELL AS THE TRASH OPERATION IN A MOVE THAT WILL REOPEN A CONGRESSIONAL PROBE OF THE BUSH ADMINISTRATION'S DEALINGS WITH IRAQ BEFORE THE PERSIAN GULF WAR PRESIDENT CLINTON HAS ORDERED FEDERAL AGENCIES TO MAKE PUBLIC THEIR FILES ON THE BANCA NAZIONALE DEL LAVORO CASE IN A LETTER TO HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D. TEXAS PRESIDENT CLINTON SAID HE ALSO WILL GIVE COMMITTEE INVESTIGATORS ACCESS TO WHAT ARE BELIEVED TO BE LARGE FILES OF CLASSIFIED DOCUMENTS DEALING WITH THE CASE THOSE DOCUMENTS WOULD REMAIN CLASSIFIED HOWEVER AND UNAVAILABLE TO THE PUBLIC THE B. N. L. CASE INVOLVES A WIDESPREAD ARMS PROCUREMENT NETWORK USED BY THE IRAQIS TO BUY ARMS RELATED EQUIPMENT FROM COMPANIES IN THE U. S. CHILE AND EUROPE PRIOR TO THE GULF WAR QUOTE THIS ADMINISTRATION BELIEVES THAT THE AMERICAN PEOPLE HAVE GOOD REASON TO LEARN THE DETAILS OF THE U. S. GOVERNMENT'S MILITARY DIPLOMATIC AND ECONOMIC ASSISTANCE TO SADDAM HUSSEIN'S REGIME QUOTE THE PRESIDENT WROTE MR. GONZALEZ HIS LETTER WAS RELEASED YESTERDAY REPRESENTATIVE GONZALEZ WHO HAS CHARGED THAT PRESIDENT BUSH'S AIDES ORGANIZED A COVERUP IN THE CASE SAID HE WILL RESUME THE INVESTIGATION IMMEDIATELY HE PROMISED TO TELL THE AMERICAN PUBLIC THE FULL TRUTH ABOUT THE B. N. L. SCANDAL THE MOVE IS EXPECTED TO SHED LIGHT ON A TILT TOWARD IRAQ BY THE BUSH ADMINISTRATION THAT CONTINUED ALMOST TO THE EVE OF THE GULF WAR ONE OF THE CHARGES EXPLORED BY MR. GONZALEZ IS THAT THE U. S. AND ITALIAN GOVERNMENTS MAY HAVE KNOWN THAT THE ATLANTA BRANCH OF ITALIAN GOVERNMENT OWNED B. N. L. WAS BEING USED FOR BACKDOOR FINANCING OF IRAQ'S ARMS NEEDS USING LOANS BORROWED FROM OTHER U. S. BANKS IN A RELATED DEVELOPMENT MEMBERS OF A COMMISSION APPOINTED BY THE ITALIAN SENATE TO INVESTIGATE THE CASE REJECTED YESTERDAY A DRAFT REPORT THAT SAID B. N. L. WAS THE VICTIM OF A FRAUD PERPETRATED BY ITS ATLANTA BRANCH THE COMMISSION IS BELIEVED TO BE PUSHING FOR A VERSION THAT REMOVES THE VICTIM THEORY WE DON'T WANT TO GIVE THE IMPRESSION THAT THE SENATE SACRIFICED ITS SEARCH FOR TRUTH AT THE ALTAR OF A MISPLACED SENSE OF NATIONAL DUTY AND PUT ALL THE BLAME ON B. N. L.'S EX ATLANTA BRANCH MANAGER CHRIS DROGOUL THE EX COMMUNIST DEMOCRATIC PARTY OF THE LEFT SAID IN A STATEMENT QUOTE IT'S CONTRADICTORY TO CLAIM THAT B. N. L. IS A VICTIM EVEN IF ITS MANAGERS WERE RESPONSIBLE QUOTE IN DECEMBER A U. S. COURT SENTENCED MR. DROGOUL TO THIRTY SEVEN MONTHS IN PRISON FOR HIS ROLE IN GRANTING THE LOANS TO IRAQ DURING THE NINETEEN EIGHTY TO EIGHTY EIGHT IRAN IRAQ WAR MOST OF THE LOANS WEREN'T AUTHORIZED BY SENIOR B. N. L. MANAGERS AND MANY OF THEM ILLEGALLY CARRIED U. S. EXPORT IMPORT BANK GUARANTEES MR. DROGOUL MANAGED THE ATLANTA OFFICE FROM NINETEEN EIGHTY FOUR UNTIL IT WAS RAIDED BY THE FEDERAL BUREAU OF INVESTIGATION IN NINETEEN NINETY ONE ATMOS ENERGY CORPORATION DALLAS SAID IT APPROVED A THREE FOR TWO SPLIT OF ITS COMMON STOCK WITH A RECORD DATE FIFTEEN DAYS AFTER REQUIRED REGULATORY APPROVALS THE NATURAL GAS SERVICE COMPANY SAID SHAREHOLDERS WILL RECEIVE ONE NEW SHARE FOR EVERY TWO SHARES HELD WITH FRACTIONAL SHARES BEING PAID IN CASH THE SPLIT WILL INCREASE SHARES OUTSTANDING TO SLIGHTLY MORE THAN FIFTEEN MILLION FROM ABOUT TEN MILLION ATMOS ALSO SAID THE QUARTERLY DIVIDEND OF THIRTY THREE CENTS A SHARE ANNOUNCED YESTERDAY WOULD BE ADJUSTED TO TWENTY TWO CENTS A SHARE IF THE RECORD DATE FOR THE STOCK SPLIT OCCURS PRIOR TO FEBRUARY TWENTY FIFTH AS INDUSTRIAL CUSTOMERS GO TOSCO CORPORATION'S HUGE TWO HUNDRED THOUSAND BARREL A DAY BAYWAY REFINERY IN LINDEN N. J. OUGHT TO BE A PRIZE CATCH FOR AN ELECTRIC UTILITY IT'S HUGE COMPLEX AND A LARGE CONSUMER OF POWER AND IT'S NOT LIKELY TO GO ANYWHERE BUT LAST SUMMER TOSCO SENT ITS ELECTRIC SUPPLIER PUBLIC SERVICE ELECTRIC AND GAS COMPANY A STIFF MESSAGE REDUCE RATES OR THE COMPANY WILL TAKE STEPS TO GENERATE ITS OWN POWER WITH ONE OF ITS BIGGEST CUSTOMERS SUDDENLY ONE OF ITS MOST THREATENING P. S. E. AND G. SAW LITTLE ALTERNATIVE IT QUICKLY COBBLED TOGETHER A RATE CUT OF NINE MILLION DOLLARS A YEAR OR TWENTY THREE PERCENT THINGS COULD HAVE BEEN WORSE FOR INSTANCE NEW YORK STATE ELECTRIC AND GAS COMPANY WATCHED A UNIT OF GENERAL MOTORS CORPORATION LEAVE ITS SYSTEM IN JULY NINETEEN NINETY TWO TO BUILD A FACILITY THAT WOULD MEET ITS APPROXIMATELY TWO HUNDRED MEGAWATT POWER DEMAND THE BINGHAMTON N. Y. UTILITY LACKED REGULATORS' PERMISSION TO BARGAIN SUCH DRAMAS ARE PLAYED OUT DAILY IN THE ELECTRIC UTILITY INDUSTRY AS ALTERNATIVE POWER SOURCES BECOME MORE AVAILABLE INDUSTRIAL CUSTOMERS ARE JAWBONING RATES DOWN AT THE SAME TIME UTILITIES ARE SCRAMBLING TO OFFSET THE LOST REVENUE WITH EXTENSIVE COST CUTTING AND LAYOFFS UTILITIES ALSO FEAR THAT ACCELERATING DEREGULATION COULD LEAD TO TRUE PRICE COMPETITION THE DISMAL OUTLOOK HAS SENT UTILITY STOCKS PLUNGING AND THE SITUATION HAS BEEN AGGRAVATED BY A HARSH WINTER IN THE PAST SEVERAL WEEKS BITTER COLD FORCED ELECTRIC UTILITIES IN PENNSYLVANIA NEW JERSEY AND MARYLAND TO INSTITUTE ROLLING BLACKOUTS DUE TO INABILITY TO MEET SHARPLY HIGHER DEMAND FROZEN COAL PILES COMBINED WITH AN INABILITY TO ACQUIRE ENOUGH NATURAL GAS HAMPERED EFFORTS TO ADD CAPACITY MEANWHILE AT ONE COMPANY GENERAL PUBLIC UTILITIES CORPORATION PARSIPPANY N. J. POOR WEATHER CONDITIONS PREVENTED DIESEL FUEL TRUCKS FROM REACHING CRUCIAL QUOTE PEAKING QUOTE UNITS THE FIVE MONTH LONG PLUNGE IN THE DOW JONES UTILITY AVERAGE TELLS PART OF THE STORY THE AVERAGE HAS DROPPED FROM TWO HUNDRED FIFTY FIVE POINT THREE FOUR ON SEPTEMBER FIRST NINETEEN NINETY THREE TO TWO HUNDRED EIGHTEEN POINT NINE SIX YESTERDAY JAY DOBSON AN ELECTRIC UTILITIES ANALYST WITH SMITH BARNEY SHEARSON INCORPORATED HAS SLASHED HIS RECOMMENDED LIST TO THREE FROM SEVENTEEN IN LITTLE MORE THAN A YEAR THERE'S NOT A COMPELLING REASON TO STAY IN THE GROUP SAYS MR. DOBSON HISTORICALLY PEOPLE HAVE OWNED UTILITY STOCKS FOR DIVIDEND GROWTH AND AS A HEDGE AGAINST INFLATION BUT THERE'S VERY LITTLE IF ANY DIVIDEND GROWTH PROSPECTS RIGHT NOW AND SKITTISH INVESTORS MAY BE IN FOR MORE BAD NEWS SEVERAL ANALYSTS BELIEVE UTILITIES WILL NEED TO RETREAT FROM THEIR TRADITIONALLY HIGH DIVIDENDS IN ORDER TO PRESERVE CASH AND EFFECTIVELY COMPETE FOR CUSTOMERS EARLIER THIS YEAR CENTERIOR ENERGY CORPORATION CLEVELAND HALVED ITS DIVIDEND AND TOOK A ONE BILLION DOLLAR CHARGE IT CITED INCREASING COMPETITION AND THE UNLIKELIHOOD THAT IT WOULD BE ABLE TO RAISE RATES TO PAY FOR DEFERRED CONSTRUCTION EXPENSES BESET BY INCREASING COMPETITION WHICH STEMS FROM THE GRADUAL DEREGULATION OF THE INDUSTRY SINCE NINETEEN SEVENTY EIGHT ELECTRIC UTILITIES HAVE BEGUN SLASHING STAFF WITH A RELISH MORE TYPICAL OF INDUSTRIAL GOODS MAKERS NEW YORK STATE ELECTRIC AND GAS IS IN THE MIDDLE OF A TWELVE MONTH PROGRAM TO CUT EIGHT HUNDRED POSITIONS OR SIXTEEN PERCENT OF ITS WORK FORCE PECO ENERGY CORPORATION PHILADELPHIA REDUCED ITS WORK FORCE FROM TWELVE THOUSAND TO NINE THOUSAND FOUR HUNDRED IN THE PAST THREE YEARS AND NIAGARA MOHAWK POWER CORPORATION SYRACUSE N. Y. IS IN THE MIDST OF CUTTING NINE HUNDRED POSITIONS OR EIGHT PERCENT OF ITS STAFF TO BE SURE MANY UTILITIES HAVE CUT COSTS BY REFINANCING PILES OF DEBT PECO ENERGY HAS TURNED OVER ABOUT FOUR POINT FOUR BILLION DOLLARS IN THE PAST FOUR YEARS SAVING MORE THAN ONE HUNDRED NINETY MILLION DOLLARS ANNUALLY BUT EVEN SAVINGS ON INTEREST EXPENSE CAN'T BREAK THE GRIM OUTLOOK MANY HAVE BEEN REFINANCING THEIR DEBT AND CUTTING JOBS BUT THOSE EFFORTS HAVE ONLY SEEMED TO HELP THEM HOLD THEIR GROUND SAYS BARRY ABRAMSON A UTILITIES ANALYST AT PRUDENTIAL SECURITIES INCORPORATED IT'S LIKE THEY'RE TREADING WATER MOREOVER UTILITIES FACE THE THREAT OF TRUE PRICE COMPETITION IF FEDERAL AUTHORITIES ALLOW THE CREATION OF A NATIONWIDE POWER GRID SOUGHT BY BIG INDUSTRIAL USERS UNDER SUCH A SYSTEM KNOWN AS QUOTE RETAIL WHEELING QUOTE CUSTOMERS COULD PURCHASE POWER FROM ANYONE ON THE GRID USERS EXPECT SUCH A SYSTEM TO LOWER RATES AND SOME UTILITIES WITH LOW COSTS FAVOR THE APPROACH BECAUSE THEY SEE A COMPETITIVE ADVANTAGE BUT THE INDUSTRY GENERALLY IS FIGHTING HARD TO KEEP RETAIL WHEELING FROM BECOMING REALITY ANYTIME SOON THEY GAINED SUPPORT FROM THE NATIONAL ENERGY POWER ACT OF NINETEEN NINETY TWO WHICH PROHIBITS INTERSTATE RETAIL WHEELING SOME UTILITY LAWYERS BELIEVE STATES DON'T HAVE THE RIGHT TO DECLARE RETAIL WHEELING WITHIN THEIR OWN BORDERS MOREOVER MEASURING AND PRICING USAGE UNDER SUCH A SYSTEM REMAINS A MURKY SCIENCE CRITICS SAY STILL SOME FORM OF RETAIL WHEELING IS BEING CONSIDERED IN NEW MEXICO AND MICHIGAN SOME UTILITIES ARE WOOING CUSTOMERS WITH LONG TERM CONTRACTS HOPING TO LOCK IN BIG CUSTOMERS SHOULD RETAIL WHEELING BE ADOPTED THE UTILITIES ARE TRYING TO BUY TIME SAYS MR. ABRAMSON THREATS OF RETAIL WHEELING HAVE SENT THE RATE MAKING PROCESS INTO A TIZZY WITH UTILITIES SEEKING THE RIGHT TO BARGAIN WITH CUSTOMERS BUT WITH REVENUE FROM LARGE USERS DROPPING RESIDENTIAL CUSTOMERS CAN EXPECT EVENTUALLY TO GET SQUEEZED OUR CONCERN IS THAT RESIDENTIAL CUSTOMERS DON'T HAVE THE SAME OPPORTUNITIES TO BARGAIN AS LARGE USERS AND AS THOSE LARGE USERS GET BETTER DEALS OR FLEE RESIDENTIAL RATES LIKELY WILL BE NEGATIVELY IMPACTED SAYS ROBERT CEISLER EXECUTIVE DIRECTOR OF THE NEW YORK CITIZENS UTILITIES BOARD IN THE BAYWAY CASE NEW JERSEY REGULATORS FORCED P. S. E. AND G. A UNIT OF PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED NEWARK AND ITS SHAREHOLDERS TO ABSORB THE DISCOUNT ENTIRELY HOWEVER NEW YORK REGULATORS HAVE ALLOWED SOME UTILITIES TO PASS ON TO OTHER CUSTOMERS INCLUDING RESIDENTIAL USERS EIGHTY PERCENT OF THE COST OF ANY DISCOUNT THEY OFFER DESPITE THE GLOOM VENTURE ASSOCIATES A UNIT OF CONSULTANTS ARTHUR ANDERSEN SAYS DEREGULATION SHOULD LEAD TO DYNAMIC GROWTH IN THE INDUSTRY CITING SIMILARITIES WITH DEREGULATION OF RAILROADS AIR TRANSPORT TELECOMMUNICATIONS AND NATURAL GAS THE FINANCIAL COMMUNITY IS MISJUDGING THE OPPORTUNITIES THAT DEREGULATION PROVIDES SAYS TIMOTHY P. GARDNER A CO AUTHOR OF THE STUDY THE DELIVERY OF ELECTRICITY IS INCREDIBLY COMPLEX AND THE UTILITIES WILL HAVE THE OPPORTUNITY TO TAKE ADVANTAGE OF THEIR EXPERTISE AS THE MARKET BECOMES MORE COMPETITIVE SOME UTILITIES WITH BOTH GAS AND ELECTRIC OPERATIONS AGREE AT UTILICORP UNITED KANSAS CITY MISSOURI SALES HAVE GROWN FROM TWO HUNDRED THIRTY THREE POINT FOUR MILLION DOLLARS IN NINETEEN NINETY TO MORE THAN FOUR HUNDRED TWENTY SIX MILLION DOLLARS IN NINETEEN NINETY TWO WE LEARNED QUITE A BIT ON OUR NATURAL GAS SIDE SAYS RICHARD GREEN CHAIRMAN AND PRESIDENT AT UTILICORP QUOTE I BELIEVE THE SAME THINGS WILL AND ARE HAPPENING ON THE ELECTRIC SIDE WE CAN'T JUST DEPEND ON THE SINGLE PRODUCT ANYMORE MOODY'S INVESTORS SERVICE INCORPORATED SAID IT DOWNGRADED THE RATING ASSIGNED TO THE OUTSTANDING EIGHTY THREE POINT FIVE MILLION DOLLARS SUBORDINATED NOTE ISSUE DUE NINETEEN NINETY FIVE AT THIS COMPANY'S DEPARTMENT STORE CHAIN UNIT WOODWARD AND LOTHROP INCORPORATED THE RATING AGENCY LOWERED ITS RATING FROM SINGLE C. A. A. TO SINGLE C. MOODY'S SAID THE DOWNGRADE REFLECTS THE UNIT'S RECENT DECISION TO SEEK CHAPTER ELEVEN PROTECTION A STATE COURT JUDGE IN LOS ANGELES DISMISSED ALL CLAIMS FOR DAMAGES SOUGHT IN A LAWSUIT BY METRO GOLDWYN MAYER INCORPORATED AGAINST KIRK KERKORIAN THE STUDIO'S FORMER OWNER M. G. M.'S CLAIMS AGAINST A LOS ANGELES ACCOUNTING FIRM REMAIN INTACT THE NINETEEN NINETY TWO SUIT HAD CHARGED THAT MR. KERKORIAN HIS LOS ANGELES BASED TRACINDA CORPORATION AND TWO ASSOCIATES FAILED TO DISCLOSE ADEQUATELY THE STUDIO'S FINANCIAL PROBLEMS WHEN THEY SOLD IT IN NINETEEN NINETY A SEPARATE SUIT FILED BY M. G. M.'S OWNER FRENCH BANK CREDIT LYONNAIS S. A. WASN'T AFFECTED BY THE JUDGE'S RULING MR. KERKORIAN HAS FILED A CROSS COMPLAINT AGAINST CREDIT LYONNAIS AND M. G. M. ALLEGING BREACH OF CONTRACT AND FRAUD THESE CLAIMS ARE ALSO UNAFFECTED BY THE COURT'S DISMISSAL OF M. G. M.'S DAMAGE CLAIMS TRACINDA MR. KERKORIAN'S PRIVATE INVESTMENT VEHICLE IS BASED IN BEVERLY HILLS CALIFORNIA STOCKS ADVANCED AS BOND PRICES CLIMBED AMID A SMOOTH GOVERNMENT NOTE AUCTION THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE ROSE TWENTY FIVE POINT EIGHT NINE POINTS TO THREE THOUSAND NINE HUNDRED THIRTY ONE POINT NINE TWO STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX CLIMBED ONE POINT SEVEN TWO TO FOUR HUNDRED SEVENTY TWO POINT SEVEN SEVEN AND THE NASDAQ COMPOSITE INDEX SURGED THREE POINT EIGHT THREE TO SEVEN HUNDRED EIGHTY SIX POINT FIVE THREE EVEN THE DOW JONES UTILITY AVERAGE JOINED THE RALLY ADDING ZERO POINT NINE THREE TO TWO HUNDRED EIGHTEEN POINT NINE SIX QUOTE OVERALL IT WAS A VERY GOOD DAY QUOTE SAID LASZLO BIRINYI WHO HEADS A CONSULTING FIRM THAT BEARS HIS NAME HE SAID THERE WERE SOME CONCERNS IN THE MORNING THAT U. S. STOCKS WOULD FARE POORLY CONSIDERING THE DECLINES IN OVERSEAS MARKETS BUT THOSE FEARS WERE OVERBLOWN MR. BIRINYI SAID STRONG EARNINGS FROM SUCH COMPANIES AS GOODYEAR TIRE AND RUBBER TOGETHER WITH A STABLE BOND MARKET HELPED TO MITIGATE THE WORRIES ABOUT WEAKNESS ABROAD THOUGH STOCKS STARTED THE DAY HIGHER THE RALLY ONLY TOOK OFF IN THE AFTERNOON WHEN IT BECAME CLEAR THAT THE TREASURY'S TWELVE BILLION DOLLAR AUCTION OF TEN YEAR NOTES HAD GONE OFF WITHOUT A HITCH ON TUESDAY LACKLUSTER DEMAND FOR THE GOVERNMENT'S THREE YEAR NOTE AUCTION HAD SENT THE YIELD ON THE TREASURY'S THIRTY YEAR BOND TO THE HIGHEST LEVEL SINCE AUGUST AND PUT PRESSURE ON STOCKS BUT A DROP IN OIL PRICES YESTERDAY PAVED THE WAY FOR HEALTHY DEMAND AT THE GOVERNMENT'S NOTE SALE WAYNE NORDBERG A PARTNER AT LORD ABBETT WHICH MANAGES ABOUT SIX BILLION DOLLARS IN STOCK ASSETS SAID INVESTORS WERE FLOCKING TO AREAS OF THE MARKET THAT HAVE AN ECONOMIC TAIL WIND WHILE AVOIDING THOSE SECTORS THAT HAVE AN INTEREST RATE HEAD WIND THUS ECONOMICALLY SENSITIVE STOCKS SUCH AS ALLIEDSIGNAL ALUMINUM COMPANY OF AMERICA AND GENERAL ELECTRIC CONTINUED TO OUTPERFORM FINANCIAL STOCKS YESTERDAY AND HELPED TO POWER THE INDUSTRIAL AVERAGE TO A DOUBLE DIGIT GAIN HE SAID INVESTORS ARE RECOGNIZING THAT THOSE COMPANIES THAT HAVE AN ECONOMIC TAIL WIND ARE GOING TO BE ABLE TO REPORT SUFFICIENT EARNINGS GROWTH TO OVERCOME THIS MODEST BACKUP IN INTEREST RATES WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST ZERO POINT TWO THREE TO ONE HUNDRED FIFTEEN POINT NINE SIX STOCK PRICES ROSE VOLUME WAS THREE HUNDRED TWENTY TWO POINT SIX MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND TWO HUNDRED EIGHTY NINE ISSUES ROSE AND EIGHT HUNDRED FIFTY FELL BOND PRICES GAINED THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE ROSE MORE THAN ONE HALF POINT OR MORE THAN FIVE DOLLARS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT FOUR OH PERCENT THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN FIVE EIGHT FIVE MARKS AND ONE HUNDRED EIGHT POINT THREE FIVE YEN COMPARED WITH ONE POINT SEVEN SIX FOUR OH MARKS AND ONE HUNDRED EIGHT POINT SEVEN FIVE YEN TUESDAY IF THE STOCK MARKET IS ADDICTED TO MUTUAL FUND MONEY AS MANY PROS SAY THEN A SURVEY THIS WEEK HAS BAD NEWS AFTER FRIDAY'S NINETY SIX POINT PLUNGE IN THE DOW JONES INDUSTRIAL AVERAGE INVESTORS QUIT SUPPLYING THOSE CRUCIAL DOLLARS TO STOCK FUNDS A SAMPLING OF ONE HUNDRED THIRTY EIGHT DOMESTIC STOCK FUNDS WITH ONE HUNDRED FORTY SIX BILLION DOLLARS IN ASSETS SHOWS THAT THE CASH FLOWS INTO THESE FUNDS DRIED UP FOR THE FOUR BUSINESS DAYS THROUGH TUESDAY IN THAT FOUR DAY PERIOD THE FUNDS ACTUALLY SUFFERED A SMALL OUTFLOW OF TWENTY FIVE MILLION DOLLARS ACCORDING TO A. M. G. DATA SERVICES THE ARCATA CALIFORNIA RESEARCH FIRM THAT PERFORMED THE STUDY BY CONTRAST FOR THE FULL WEEK ENDED FEBRUARY SECOND THE SAME FUNDS SUCKED IN NEARLY THREE HUNDRED EIGHTY SEVEN MILLION DOLLARS ROBERT ADLER PRESIDENT OF A. M. G. WARNS THAT THE DATA COME FROM ONLY A SAMPLING OF FUNDS AND SO MAY NOT CAPTURE THE FULL CASH FLOW PICTURE NEVERTHELESS MR. ADLER SAYS GIVEN THE MARKET'S QUOTE RELIANCE ON MUTUAL FUND FLOWS THIS DOESN'T BODE WELL FOR THE MARKET QUOTE TO BE SURE INVESTORS COULD COME FLOCKING BACK INTO STOCK FUNDS IN THE DAYS AHEAD AND IT'S CLEAR THAT FUND SHAREHOLDERS DIDN'T PANIC AND DUMP STOCK FUNDS EN MASSE FOLLOWING FRIDAY'S SLUMP FEARS ABOUT SMALL INVESTORS RUSHING TO CASH OUT THEIR MUTUAL FUND HOLDINGS IN A MARKET DOWNTURN HAVE HAUNTED MANY MARKET PROGNOSTICATORS LATELY SUCH A MOVE WOULD WORSEN A STOCK MARKET DECLINE SINCE FUNDS WOULD THEN BE FORCED TO SELL MORE AND MORE STOCKS TO PAY OFF DEPARTING SHAREHOLDERS HOWEVER FUND INVESTORS HAVE LEARNED SINCE NINETEEN EIGHTY SEVEN THAT IT'S THE RIGHT THING TO BUY ON EVERY DIP SAYS BYRON WIEN U. S. INVESTMENT STRATEGIST AT MORGAN STANLEY AND COMPANY IN NEW YORK FOR PEOPLE TO PANIC OUT OF MUTUAL FUNDS WOULD TAKE A FAIRLY PROLONGED DECLINE IN PRICES MR. WIEN SAYS AND WE'RE A LONG WAY FROM THAT EVEN SO A MARKET ACCUSTOMED TO BEING INJECTED WITH MORE THAN TEN BILLION DOLLARS A MONTH FROM STOCK FUNDS AS HAPPENED ON AVERAGE LAST YEAR COULD SUFFER WITHDRAWAL SYMPTOMS LONG BEFORE INVESTORS START REDEEMING EVEN A DECLINE IN CASH FLOWING TO FUNDS MIGHT MAKE THE MARKET LOOK SICKLY FOR ONE THING INVESTORS PUT OFF BY LOW RETURNS ON BONDS AND MONEY MARKET FUNDS MAY BE DRAWN TO OTHER INVESTMENTS THAN U. S. STOCK FUNDS ACCORDING TO A. M. G. MORE THAN HALF OF THE MONEY GOING INTO STOCK FUNDS THIS YEAR HAS GONE INTO THOSE THAT INVEST OVERSEAS MOREOVER IN ANOTHER BAD SIGN FOR U. S. STOCKS THERE SEEMS TO BE NO DECLINE IN THE VOLUME OF INITIAL PUBLIC OFFERINGS HITTING THE MARKET LAST YEAR I. P. O.S SOAKED UP MUCH OF THE CASH MUTUAL FUNDS HAD TO INVEST IF EQUITY OFFERINGS STAYED HIGH AND IF CASH FLOWS INTO STOCK FUNDS DIMINISHED THAT WOULD BE A NEGATIVE FOR THE STOCK MARKET SAYS HERSH COHEN COMANAGER OF SMITH BARNEY SHEARSON APPRECIATION FUND MARKET PROFESSIONALS WHO TRACK I. P. O.S SAY THE NUMBER OF SCHEDULED OFFERINGS IN THE PIPELINE ISN'T SHOWING SIGNS OF DWINDLING THE ACTIVITY IN THE MARKET RIGHT NOW IS UNCONNECTED WITH WHAT THE FED HAS DONE IN TIGHTENING SHORT TERM RATES SAYS LINDA KILLIAN A PRINCIPAL WITH RENAISSANCE CAPITAL CORPORATION IN GREENWICH CONNECTICUT THE I. P. O. FILING ACTIVITY CONTINUES TO BE VERY STRONG WITH PENDING DEALS SCHEDULED FOR PRICING OVER THE NEXT EIGHT WEEKS UP MORE THAN TWENTY FIVE PERCENT FROM A YEAR AGO ROBERT NATALE NEW ISSUES ANALYST FOR STANDARD AND POOR'S CORPORATION IN NEW YORK SAYS THE CONTINUING VIGOR OF THE I. P. O. MARKET IS A BAD SIGN FOR STOCKS OVERALL AS I. P. O.S WILL KEEP SOAKING UP FRESH MONEY FLOWS IN THE MONTHS AHEAD QUOTE I THINK THIS IS GOING TO BE A DETERRENT TO THE BULL MARKET QUOTE HE SAYS THE NEW ISSUES MARKET IS GOING TO BE PICKING UP BETWEEN NOW AND MARCH WHICH COULD CAUSE MORE LIMITED PROGRESS IN OVERALL STOCK PRICES HE EXPLAINS THE VOLUME OF FILINGS TENDS TO ACCELERATE INTO MARCH WHEN THE NUMBER OF ACTUAL OFFERINGS OFTEN PEAKS FOR THE FIRST HALF OF THE YEAR THAT IS BECAUSE AFTER ACCUMULATING YEAR END FINANCIAL DATA BY LATE FEBRUARY COMPANIES TEND TO RUSH TO FILE PUBLIC OFFERINGS THE A. M. G. SURVEY OF FUNDS' CASH FLOWS FOCUSED ON ACTIVITY AT LEADING GROWTH FUNDS THE NAME GROWTH FUND IS SOMEWHAT DECEPTIVE BECAUSE IT INCLUDES A VARIETY OF INVESTMENT STYLES INCLUDING BOTH GROWTH STOCK FUNDS THAT INVEST IN FAST GROWING COMPANIES AND ALSO VALUE FUNDS THAT LOOK FOR CHEAP STOCKS AMONG THE FUNDS SAMPLED FIDELITY MAGELLAN THE LARGEST U. S. MUTUAL FUND HAD AN OUTFLOW OF EIGHTY FIVE MILLION DOLLARS IN THE FOUR BUSINESS DAYS THROUGH TUESDAY THE LARGEST OUTFLOW FROM ANY FUND IN THE SURVEY ACCORDING TO A. M. G. BUT SINCE THE FIDELITY INVESTMENTS FUND IS SO HUGE THE OUTFLOW ACTUALLY AMOUNTED TO ONLY A QUARTER OF ONE PERCENTAGE POINT OF ITS ASSETS BY CONTRAST BRANDYWINE FUND HAD AN INFLOW OF FORTY FOUR MILLION DOLLARS THE MOST POSITIVE RESULT OF ANY FUND IN THE SURVEY MEANWHILE ROBERTSON STEPHENS CONTRARIAN A FUND DESIGNED TO BENEFIT FROM MARKET DECLINES HAD INFLOWS OF NINETEEN MILLION DOLLARS THE THIRD HIGHEST IN THE SURVEY SO LONG SECTOR FUNDS IN AN UNUSUAL DISPLAY OF CANDOR VANGUARD GROUP HAS ASKED FUND SHAREHOLDERS TO KILL OFF TWO POORLY PERFORMING SECTOR FUNDS OR FUNDS THAT GENERALLY INVEST IN A SINGLE INDUSTRY SHAREHOLDERS OF THE TWO VANGUARD SPECIALIZED PORTFOLIOS FOR THE SERVICE ECONOMY AND TECHNOLOGY SECTORS WILL VOTE IN MAY ON A PROPOSAL TO MERGE THE FUNDS INTO TWO LARGER VANGUARD FUNDS JOHN C. BOGLE VANGUARD'S CHAIRMAN SAID IN A STATEMENT THAT THE FUNDS HAD BECOME A TRADING VEHICLE FOR SOME INVESTORS BUT HAD FAILED TO ATTRACT LONG TERM INVESTORS THE STATEMENT SAID THE DECISION TO KILL OFF THE FUNDS WAS MADE AFTER CAREFUL CONSIDERATION OF THE PORTFOLIOS' LONG TERM PERFORMANCE RECORDS WHICH HAD NOT MEASURED UP TO COMPETITIVE NORMS SECTOR FUNDS HAVE MULTIPLIED IN NUMBER DURING THE PAST DECADE WITH TOP PERFORMERS ATTRACTING HUNDREDS OF MILLIONS OF DOLLARS IN ASSETS THE TECHNOLOGY FUND HAS ONLY EIGHTY FOUR MILLION DOLLARS IN ASSETS AND ITS TOTAL RETURN OF FOURTEEN POINT TWO FOUR PERCENT FOR THE PAST FIVE YEARS LAGGED BEHIND THE RETURNS OF EIGHTY PERCENT OF RIVAL SECTOR FUNDS ACCORDING TO LIPPER ANALYTICAL SERVICES INCORPORATED VANGUARD WANTS TO MERGE ITS TECHNOLOGY FUND INTO EXPLORER ONE OF ITS SMALL STOCK FUNDS THE SERVICE ECONOMY FUND MEANWHILE IS TO BE MERGED INTO VANGUARD'S MORGAN GROWTH FUND MORGAN GROWTH HAS A BETTER RECORD THAN SERVICE ECONOMY FOR THE PAST NINE YEARS BUT NOT FOR THE PAST FIVE HOWEVER SINCE SERVICE ECONOMY HAS GLEANED ONLY THIRTY FOUR MILLION DOLLARS IN ASSETS AFTER MORE THAN NINE YEARS QUOTE WE ARE WILLING TO ADMIT THAT THE CONCEPT FOR THE PORTFOLIO MAY HAVE BEEN ILL CONCEIVED QUOTE MR. BOGLE SAID IN THE STATEMENT THE TWO DISAPPEARING FUNDS WERE MANAGED UNDER CONTRACT FOR VANGUARD BY WELLINGTON MANAGEMENT COMPANY A BOSTON MANAGER OF A NUMBER OF VANGUARD FUNDS REYNOLDS METALS COMPANY RICHMOND VIRGINIA SAID IT REACHED AN AGREEMENT TO SELL REYNOLDS AUSTRALIA METALS LIMITED FOR ONE HUNDRED SIXTEEN MILLION DOLLARS PLUS THE DELIVERY OF THIRTY THOUSAND OUNCES OF GOLD OVER SEVEN YEARS REYNOLDS AUSTRALIA WHICH HOLDS A FORTY PERCENT STAKE IN THE BODDINGTON GOLD MINE IN WESTERN AUSTRALIA WILL BE SOLD TO POSEIDON GOLD LIMITED OF ADELAIDE AUSTRALIA A UNIT OF NORMANDY POSEIDON LIMITED THE TRANSACTION IS EXPECTED TO CLOSE MARCH FIFTEENTH REYNOLDS METALS PLANS TO USE THE SALE'S PROCEEDS TO FUND PART OF ITS NINETEEN NINETY FOUR CAPITAL EXPENDITURE PLAN EXPAND BUSINESSES AND STRENGTHEN ITS FINANCIAL POSITION BELGIUM CITING A SLIDE IN BUSINESS CONFIDENCE IN THE COUNTRY WILL OFFER NEW TAX BREAKS TO MULTINATIONAL COMPANIES TO STEM DECLINES IN FOREIGN INVESTMENT THE ECONOMICS MINISTRY ALSO WILL SEEK TO PROTECT FOREIGN COMPANIES' COORDINATION CENTERS IN BELGIUM FROM CHANGES IN THEIR TAX STATUS U. S. FIRMS HAVE SET UP ONE HUNDRED OF THE CENTERS WHICH ATTRACT CAPITAL IN A POLL BY THE AMERICAN CHAMBER OF COMMERCE IN BELGIUM EIGHTY SIX PERCENT OF ITS ONE THOUSAND MEMBERS WORRIED ABOUT UNSTABLE GOVERNMENT POLICIES ON TAXES AND LABOR SOME FIRMS PERCEIVED TAXATION AS IN PERPETUAL UPHEAVAL BELGIUM GETS ONLY FOUR PERCENT OF U. S. DIRECT INVESTMENT IN EUROPE AND IN RECENT YEARS HAD A NET LOSS OF U. S. OPERATION SO THE GOVERNMENT WILL LET FOREIGN COMPANIES CONDUCT A WIDER RANGE OF LOW TAXED ACTIVITIES TAX BREAKS NOW OFFERED TO DISTRIBUTION CENTERS ONLY FOR HANDLING RAW MATERIALS AND PROCUREMENT WILL BE EXPANDED TO COVER PRODUCTS AND SERVICES FRANCE TIGHTENED CONTROLS ON FISH IMPORTS TO PLACATE STRIKING FISHERMEN WHO SAY THEY ARE BEING UNDERCUT BY FOREIGN RIVALS' CHEAPER PRICES THE FISHERMEN WANT PRICE MINIMUMS AND RESTRICTIONS ON IMPORTS FROM COUNTRIES THAT AREN'T EUROPEAN UNION MEMBERS FRANCE INTENSIFIED CUSTOMS INSPECTIONS OF FISH IMPORTS PROMPTING A U. S. EMBASSY PROTEST THAT THIS CAUSED TONS OF AMERICAN SHIPMENTS TO ROT FRANCE ALSO WILL GRANT IMPORT LICENSES ONLY TO COMPANIES BASED IN COUNTRIES THAT APPLY PRODUCTION AND MARKETING RULES THAT MEET OR EXCEED E. U. STANDARDS THE GERMAN CABINET APPROVED A PROPOSAL TO TAX SOME FOREIGN TRACTOR TRAILER TRUCKS THAT USE THE AUTOBAHNS JUST AS GERMAN HAULERS MUST PAY TO RUN ON EUROPEAN EXPRESSWAYS THE LEGISLATION TO GO TO PARLIAMENT WOULD TAKE EFFECT NEXT JANUARY FIRST THE BILL WOULD CUT THE MOTOR VEHICLE TAX ON GERMAN OPERATORS AND ASSESS BETWEEN EIGHT HUNDRED FIFTY DOLLARS AND ONE THOUSAND FOUR HUNDRED FIFTEEN DOLLARS A YEAR FOR AN AUTOBAHN STICKER FOR TRUCKS TRANSPORTING GOODS OUT OF AND INTO GERMANY VIA BELGIUM THE NETHERLANDS LUXEMBOURG AND DENMARK AS INTERNATIONAL CREDIT CARD COMPANIES CAMPAIGN IN CHINA TO EXPAND IN THE HUGE AND LARGELY UNTAPPED MARKET FRAUD HAS BECOME A SERIOUS PROBLEM IN MAJOR CITIES THE COMPANIES BLAMED POOR COMMUNICATIONS AND WEAK REGULATION FOR THE INCREASES IN REPORTED FRAUD THEY SAID MAJOR OFFENDERS ARE MERCHANTS WHO FORGE PAYMENT SLIPS OR OVERCHARGE CREDIT CARDS WERE INTRODUCED TO CHINA ONLY IN THE EARLY NINETEEN EIGHTIES CREDIT CARD TRANSACTIONS ARE DOMINATED BY FOREIGN VISITORS THE RUSSIAN GOVERNMENT MUST TAKE A MORE ACTIVE ROLE IN REGULATING THE ECONOMY SUCH AS SETTING UTILITY AND TRANSPORT PRICES ECONOMICS MINISTER ALEXANDER SHOKHIN SAID AFTER MEETING WITH ECONOMISTS WHO HAVE PROPOSED A FUNDAMENTAL SHIFT IN MARKET REFORMS MR. SHOKHIN SAID HE AGREED WITH THEM ON SEVERAL ISSUES REFORMERS IN AND OUT OF THE GOVERNMENT HAVE FAULTED THE ECONOMISTS' REPORT SAYING IT OFFERS SOVIET ERA SOLUTIONS TO MARKET PROBLEMS THE REPORT CALLED FOR FIXING MANY PRICES AND SLOWING PRIVATIZATIONS AND BLAMED RISING PRODUCTION COSTS NOT MONETARY GROWTH FOR RAMPANT INFLATION THE EUROPEAN PARLIAMENT URGED INCLUSION OF LABOR LAWS IN THE LIBERALIZED WORLD TRADE PACT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE EUROPEAN UNION ASSEMBLY ALSO APPEALED FOR THE GLOBAL TRADE GROUP TO ENSURE PROTECTION OF WORKERS AND THEIR UNIONS IT APPROVED A RESOLUTION DEMANDING PROVISIONS BARRING CHILD AND FORCED LABOR BUT IT REJECTED A PROPOSAL TO BLOCK THE E. U. FROM SIGNING THE G. A. T. T. DEAL UNLESS IT ALLOWS RESTRICTING IMPORTS FROM A COUNTRY THAT DOESN'T RESPECT INTERNATIONAL LABOR STANDARDS THE ACCORD CONTAINS A LOOSELY WORDED COMMITMENT TO SOCIAL PROTECTION A SIXTEEN PERCENT HOLDING IN THE UNITED ELECTRIC POWER SYSTEM OF RUSSIA IS ON THE AUCTION BLOCK A MOVE TOWARD PRIVATIZING WHAT OFFICIALS SAID IS THE WORLD'S BIGGEST UTILITY FOUNDED IN NINETEEN TWENTY THE SOVIET POWER GRID ONCE STRETCHED INTO EAST BLOC SATELLITE STATES AND WAS CONTROLLED FROM MOSCOW ALMOST ALL OF THE FORMER U. S. S. R. IS STILL LINKED TO THE GRID BUT ONLY THE PART INSIDE RUSSIA IS TO BE TAKEN PRIVATE IN THE SELL OFF THROUGH MARCH TWENTY EIGHTH RUSSIANS MAY BUY THE SIXTEEN PERCENT INTEREST FOR PRIVATIZATION VOUCHERS THE GOVERNMENT WILL HOLD FIFTY ONE PERCENT OF UNITED ELECTRIC UNTIL NINETEEN NINETY FIVE ITS WORKERS WILL GET TWENTY ONE PERCENT AND TWELVE PERCENT IS TO BE OFFERED FOR SALE TO PRIVATE INVESTORS UNITED ELECTRIC A JOINT STOCK COMPANY SINCE NINETEEN NINETY TWO VALUES ITS ASSETS AT FORTY POINT ONE FIVE BILLION DOLLARS INCLUDING SIX HUNDRED EIGHTY FOUR CONVENTIONAL POWER PLANTS AND ONE POINT FIVE MILLION MILES OF CABLE CONNECTING SIXTY NINE REGIONAL POWER SYSTEMS WHILE THE UTILITY'S SERVICE IS RELIABLE CONSUMERS INCLUDING STATE OWNED AND PRIVATE ENTERPRISES OWE ONE POINT SEVEN EIGHT BILLION DOLLARS TO THE COMPANY WHICH OWES TWO HUNDRED TWENTY THREE MILLION DOLLARS TO NUCLEAR PLANTS THAT PROVIDE TWELVE PERCENT OF RUSSIA'S ELECTRICITY BUT AREN'T PART OF UNITED ELECTRIC AFTER SOME VODKA WORKERS WERE IDLED BECAUSE OF DECLINING SALES RUSSIA'S CABINET AGREED TO CUT THE EXCISE TAX ON VODKA TO EIGHTY PERCENT FROM NINETY PERCENT TO HELP DISTILLERS COMPETE WITH CHEAPER FOREIGN BRANDS DOMESTIC PRICES COULD FALL FIVE PERCENT IN ROME FIFTEEN THOUSAND GRAPE FARMERS BLOCKED TRACKS AT THE MAIN RAILWAY STATION AND HALTED AUTO TRAFFIC IN THE ITALIAN CAPITAL TO PROTEST MOVES TO REDUCE EUROPE'S WINE SURPLUS BETHLEHEM STEEL CORPORATION BETHLEHEM PENNSYLVANIA SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF TWELVE MILLION COMMON SHARES THE STEELMAKER SAID TEN POINT TWO MILLION SHARES WILL BE OFFERED IN THE U. S. WHILE ONE POINT EIGHT MILLION WILL BE SOLD INTERNATIONALLY BETHLEHEM SAID IT PLANS TO CONTRIBUTE ALL OR SUBSTANTIALLY ALL OF THE OFFERING'S PROCEEDS TO THE COMPANY'S PENSION FUND ANY REMAINING PROCEEDS WILL BE USED FOR GENERAL PURPOSES INCLUDING CAPITAL EXPENDITURES FOR MODERNIZATION BETHLEHEM SAID SALOMON BROTHERS WILL BE LEAD MANAGER FOR THE OFFERING THE OVERALLOTMENT OPTION IS FOR ONE POINT EIGHT MILLION ADDITIONAL SHARES BETHLEHEM CURRENTLY HAS NINETY ONE POINT FIVE MILLION COMMON SHARES OUTSTANDING IF ALL OF THE OFFERED SHARES ARE SOLD AND THE FULL OVERALLOTMENT OPTION IS EXERCISED THE COMPANY WILL THEN HAVE ABOUT ONE HUNDRED FIVE POINT THREE MILLION COMMON SHARES OUTSTANDING THE INTERNAL REVENUE SERVICE IS MAKING A ONE TIME ONLY SETTLEMENT OFFER TO COMPANIES WITH SOME FOURTEEN POINT FIVE BILLION DOLLARS IN TAX DISPUTES THE DISPUTES INVOLVE HOW THE COMPANIES ACCOUNT FOR QUOTE INTANGIBLE QUOTE CORPORATE ASSETS SUCH AS MAILING LISTS COMPUTER SOFTWARE AND OTHER ITEMS SOME COMPANIES DEPRECIATE THEM THAT IS DEDUCT THEIR VALUE FROM TAXABLE INCOME OVER A PERIOD OF YEARS AS THEY WOULD OTHER ASSETS SUCH AS MANUFACTURING PLANTS DETERMINING THE VALUE OF INTANGIBLE ASSETS AS WELL AS HOW THEY MAY BE DEPRECIATED HAS BEEN A MURKY ISSUE FOR YEARS BUT THE SUPREME COURT RULED AGAINST THE I. R. S. LAST YEAR IN A CASE INVOLVING INTANGIBLES CLAIMED BY THE NEWARK MORNING LEDGER COMPANY AND THE NINETEEN NINETY THREE BUDGET LAW SPELLED OUT HOW COMPANIES MUST ACCOUNT FOR INTANGIBLE ASSETS THE LAW HOWEVER DIDN'T ADDRESS INTANGIBLE ASSETS CLAIMED BEFORE JULY TWENTY FIFTH NINETEEN NINETY ONE THAT LEFT UNRESOLVED DISPUTES INVOLVING DEDUCTIONS CLAIMED BEFORE THAT DATE BY SOME ONE THOUSAND FIVE HUNDRED COMPANIES THE MAJOR GOAL IS TO SETTLE A SIGNFICANT PART OF THE INVENTORY SAID JAMES J. KEIGHTLEY SPECIAL COUNSEL TO THE I. R. S. UNDER THE SETTLEMENT THE I. R. S. WOULD PLUG EACH COMPANY'S DISPUTED AMOUNT OF INTANGIBLE ASSETS INTO TWO FORMULAS AND LET THE COMPANY DEDUCT WHICHEVER RESULTING AMOUNT IS GREATER IN GENERAL THE I. R. S. SAID THE MORE AGGRESSIVE THE POSITION THE COMPANY TOOK ON THE TAX RETURN THE MORE IT WOULD HAVE TO GIVE BACK UNDER THE SETTLEMENT THE SETTLEMENT OFFER IS LESS GENEROUS THAN THE TREATMENT PERMITTED UNDER THE NINETEEN NINETY THREE BUDGET LAW BUT THE I. R. S. SAID CONGRESS MADE CLEAR THAT COMPANIES NOT COVERED BY THE LAW WEREN'T TO GET SUCH FAVORABLE TREATMENT MR. KEIGHTLEY SAID HE SAID BOTH THE I. R. S. AND THE COMPANIES WOULD ELIMINATE UNCERTAINTIES AND SAVE ON LITIGATION COSTS BY SETTLING WE THINK WE HAVE PICKED A NUMBER THAT MAKES SENSE FROM A SETTLEMENT PERSPECTIVE HE SAID ON APRIL FIRST THE I. R. S. WILL NOTIFY THE COMPANIES THAT THEY HAVE NINETY DAYS TO COMPUTE HOW THE SETTLEMENT OFFER WOULD AFFECT THEIR TAXES AND STATE THEIR WILLINGNESS TO ACCEPT OR REJECT THE SETTLEMENT A SINGLE COMPANY WITH MULTIPLE DISPUTES OVER INTANGIBLES MUST SETTLE OR REJECT ALL OF THEM IT'S TAKE IT OR LEAVE IT SAID MR. KEIGHTLEY IF COMPANIES REJECT THE SETTLEMENT THEY MAY PROCEED WITH THE CUSTOMARY I. R. S. HEARINGS AND COURT APPEALS IF NECESSARY TO DETERMINE THE FATE OF THE DEDUCTIONS COMPANIES WERE JUST LEARNING OF THE SETTLEMENT PROPOSAL YESTERDAY AND MOST DECLINED TO COMMENT THE TAX DIRECTOR AT INTERNATIONAL MULTIFOODS A MINNEAPOLIS FOOD SERVICE COMPANY THAT HAS BETWEEN TWENTY MILLION DOLLARS AND THIRTY MILLION DOLLARS IN DISPUTED TAXES SAID THE COMPANY COULDN'T COMMENT FOR A FEW DAYS UNTIL IT REVIEWED THE COMPLICATED SETTLEMENT FORMULA CABLE T. V. AMERICA'S TALKING AN ALL TALK CABLE NETWORK FROM GENERAL ELECTRIC COMPANY'S N. B. C. WILL MAKE ITS DEBUT JULY FOURTH THE COMPANY DECLINED TO SAY HOW MANY HOUSEHOLDS WILL HAVE ACCESS TO THE CHANNEL WHICH WILL PRODUCE FOURTEEN HOURS OF LIVE TALK SHOWS DAILY WHO'S NEWS THE VILLAGE VOICE SAID EDITOR IN CHIEF JONATHAN LARSEN RESIGNED BUT WILL STAY AT THE ALTERNATIVE WEEKLY NEWSPAPER UNTIL A SUCCESSOR IS NAMED MR. LARSEN FIFTY FOUR SAID HE NEEDED A BREAK AFTER A STRESSFUL PERIOD THE VOICE IS CLOSELY HELD BY BUSINESSMAN LEONARD STERN THE SENATE VOTED NINETY FIVE TO ZERO TO EXTEND THE DEADLINE FOR CIVIL FRAUD ACTIONS AGAINST FAILED SAVINGS AND LOANS A VICTORY FOR REPUBLICANS DEMANDING A MORE EXTENSIVE PROBE OF THE WHITEWATER CASE SENATOR ALFONSE D'AMATO R. N. Y. HAD BEEN DEMANDING AN EXTENSION OF THE STATUTE OF LIMITATIONS THAT WAS SET TO EXPIRE FEBRUARY TWENTY EIGHTH IN THE CASE OF MADISON GUARANTY SAVINGS AND LOAN MADISON IS THE FAILED ARKANSAS INSTITUTION CENTRAL TO THE WHITEWATER CASE WITHOUT THE EXTENSION HE SAID THE SAVINGS AND LOAN CLEANUP AGENCY WOULD BE UNABLE TO PURSUE CIVIL FRAUD AND NEGLIGENCE CLAIMS AGAINST MADISON IN A COMPROMISE REACHED YESTERDAY BETWEEN SENATOR D'AMATO AND SENATOR HOWARD METZENBAUM D. OHIO. THE LANGUAGE WOULD ALLOW THE RESOLUTION TRUST CORPORATION TO PURSUE CIVIL ACTIONS AGAINST NUMEROUS FAILED S. AND L.S UNTIL DECEMBER THIRTY FIRST NINETEEN NINETY FIVE THE PROVISION IS PART OF A SUPPLEMENTAL SPENDING BILL TO PROVIDE EIGHT POINT SIX BILLION DOLLARS FOR VICTIMS OF THE LOS ANGELES EARTHQUAKE A SPECIAL COUNSEL AS PART OF A CRIMINAL PROBE IS INVESTIGATING TIES BETWEEN THE FAILED MADISON GUARANTY AND WHITEWATER DEVELOPMENT CORPORATION AN ARKANSAS REAL ESTATE DEVELOPMENT COMPANY THAT WAS OWNED BY BILL AND HILLARY RODHAM CLINTON ALONG WITH MADISON'S OWNER AND HIS WIFE AT THE TIME NEWLY PUBLIC G. P. FINANCIAL CORPORATION PARENT OF GREEN POINT SAVINGS BANK SAID PRO FORMA PROFIT IN THE FISCAL SECOND QUARTER ROSE EIGHTEEN PERCENT BOOSTED BY HIGHER NET INTEREST INCOME AND A DROP IN PROVISIONS FOR LOAN LOSSES AND INCOME TAXES G. P. FINANCIAL WHICH HAD ITS INITIAL PUBLIC OFFERING JANUARY TWENTY EIGHTH REPORTED PRO FORMA NET INCOME FOR THE SECOND QUARTER ENDED DECEMBER THIRTY FIRST OF TWENTY EIGHT POINT ONE MILLION DOLLARS OR FIFTY ONE CENTS A SHARE COMPARED WITH TWENTY THREE POINT NINE MILLION DOLLARS OR FORTY FOUR CENTS A SHARE A YEAR EARLIER PROVISIONS FOR LOAN LOSSES FELL FIVE PERCENT TO TWELVE POINT TWO MILLION DOLLARS FROM TWELVE POINT NINE MILLION DOLLARS FOR THE FIRST SIX MONTHS G. P. FINANCIAL HAD NET INCOME OF FIFTY SIX POINT TWO MILLION DOLLARS OR ONE DOLLAR AND TWO CENTS A SHARE COMPARED WITH NET INCOME OF FORTY FOUR POINT THREE MILLION DOLLARS OR EIGHTY ONE CENTS A SHARE A YEAR EARLIER THE YEAR EARLIER PERIOD INCLUDED A FIVE POINT THREE MILLION DOLLAR CHARGE FOR ACCOUNTING CHANGES THE COMPANY SAID HIGHER NET INTEREST INCOME AND A DROP IN INCOME TAXES FOR THE PERIOD WERE PARTIALLY OFFSET BY INCREASES IN NET INTEREST EXPENSE AND PROVISIONS FOR LOAN LOSSES LOAN LOSS PROVISIONS FOR THE SIX MONTHS ROSE SIXTEEN PERCENT TO TWENTY FIVE POINT THREE MILLION DOLLARS FROM TWENTY ONE POINT EIGHT MILLION DOLLARS EFFECTIVE JANUARY FIRST G. P. FINANCIAL NEW YORK SAID IT'S CHANGING ITS FISCAL YEAR TO A CALENDAR YEAR AMSCO INTERNATIONAL INCORPORATED REPORTED SHARPLY LOWER FOURTH QUARTER EARNINGS PARTLY BECAUSE OF LOWER GROSS MARGINS AND A DROP IN CUSTOMER ORDERS FOR CAPITAL EQUIPMENT THE PITTSBURGH COMPANY A SUPPLIER OF INFECTION CONTROL DECONTAMINATION AND SURGICAL PRODUCTS AND SERVICES SAID PROFIT PLUNGED SIXTY PERCENT TO SIX POINT TWO MILLION DOLLARS OR TWENTY CENTS A SHARE FROM FIFTEEN POINT THREE MILLION DOLLARS OR FORTY SEVEN CENTS A SHARE A YEAR AGO THE PERIOD INCLUDED A LOSS OF FOUR POINT NINE MILLION DOLLARS OR SIXTEEN CENTS A SHARE FROM THE COMPANY'S INVESTMENT IN THE AMSCO STERILE RECOVERIES INCORPORATED UNIT COMPARED WITH A LOSS OF TWO POINT SIX MILLION DOLLARS OR SEVEN CENTS A SHARE FOR THE SAME INVESTMENT IN THE NINETEEN NINETY TWO QUARTER SALES DROPPED TEN PERCENT TO ONE HUNDRED FORTY SIX POINT EIGHT MILLION DOLLARS FROM ONE HUNDRED SIXTY THREE POINT NINE MILLION DOLLARS CUSTOMER ORDERS FOR CAPITAL EQUIPMENT FELL TWENTY FOUR PERCENT TO SEVENTY SEVEN POINT THREE MILLION DOLLARS AMSCO SAID IT WILL ELIMINATE ABOUT ONE HUNDRED JOBS WORLD WIDE AS A RESULT OF REORGANIZING ITS OPERATIONS AROUND TWO GLOBAL GROUPS ONE FOR MARKETING PRODUCT DEVELOPMENT AND MANUFACTURING AND THE OTHER FOR PRODUCT SALES AND SERVICE ACTIVITIES L. A. QUINTA INNS INCORPORATED SAN ANTONIO TEXAS SAID ITS BOARD AUTHORIZED A THREE FOR TWO COMMON STOCK SPLIT THE MOTEL CONCERN SAID EACH SHAREHOLDER WILL RECEIVE ONE ADDITIONAL SHARE ON OR ABOUT MARCH FIFTEENTH FOR EACH TWO SHARES HELD FEBRUARY TWENTY FIRST A CASH PAYMENT WILL BE MADE IN LIEU OF FRACTIONAL SHARES BASED ON THE CLOSING PRICE OF COMMON SHARES ON FEBRUARY TWENTY FIRST ADJUSTED TO REFLECT THE THREE FOR TWO SPLIT THE COMPANY ALSO SAID IT INCREASED THE CASH DIVIDEND BY FIFTY PERCENT IN CONJUNCTION WITH THE SPLIT RESULTING IN A PAYOUT AT THE ANNUAL RATE OF TEN CENTS A SHARE ON POSTSPLIT COMMON SHARES AFTER THE SPLIT LA QUINTA INNS WILL HAVE ABOUT THIRTY POINT FOUR MILLION SHARES OUTSTANDING BLAIR CORPORATION WARREN PENNSYLVANIA A DIRECT MAIL ORDER RETAILER OF MEN'S AND WOMEN'S APPAREL AND HOME FURNISHINGS DECLARED A QUARTERLY DIVIDEND OF ONE DOLLAR A SHARE PAYABLE MARCH FIFTEENTH TO SHAREHOLDERS OF RECORD FEB TWENTY THREE THE COMPANY HAD PAID A DIVIDEND OF THIRTY FIVE CENTS A SHARE IN THE FIRST THREE QUARTERS A BLAIR SPOKESMAN SAID THAT A YEAR AGO THE COMPANY HAD PAID DIVIDENDS OF TWENTY FIVE CENTS A SHARE FOR EACH OF THE FIRST THREE QUARTERS AND A ONE DOLLAR AND FIFTY FIVE CENT A SHARE DIVIDEND IN THE FOURTH QUARTER THE LOWER FOURTH QUARTER DIVIDEND IN THE LATEST PERIOD REFLECTS LOWER EARNINGS REPORTED BY THE COMPANY HE ADDED CHARLES SCHWAB AND COMPANY REPORTED RECORD TRADING ACTIVITY FOR JANUARY AND SAID CLIENT EQUITY EXCEEDED ONE HUNDRED BILLION DOLLARS IN JANUARY THE SAN FRANCISCO DISCOUNT BROKERAGE FIRM EXECUTED AN AVERAGE FIFTY ONE THOUSAND SEVEN HUNDRED TRADES A DAY COMPARED WITH THIRTY EIGHT THOUSAND SIX HUNDRED TRADES A DAY IN DECEMBER AND THIRTY FOUR THOUSAND SIX HUNDRED TRADES A DAY IN JANUARY NINETEEN NINETY THREE COMBINED NEW YORK STOCK EXCHANGE AND NASDAQ STOCK MARKET AVERAGE DAILY VOLUME INCREASED TO SIX HUNDRED THIRTY FOUR MILLION SHARES IN JANUARY FROM FIVE HUNDRED FORTY SIX MILLION SHARES IN DECEMBER AND FIVE HUNDRED TWENTY FIVE MILLION SHARES IN JANUARY NINETEEN NINETY THREE SCHWAB SAID ITS CLIENTS' EQUITY INCREASED FROM NINETY FIVE POINT EIGHT BILLION DOLLARS IN DECEMBER TO ONE HUNDRED POINT EIGHT BILLION DOLLARS IN JANUARY SCHWAB'S CLIENT EQUITY WAS SIXTY EIGHT POINT SIX BILLION DOLLARS IN JANUARY NINETEEN NINETY THREE SUPREME COURT JUSTICE HARRY BLACKMUN CLEARED THE WAY FOR C. B. S. NEWS TO BROADCAST A REPORT THAT INCLUDES HIDDEN CAMERA VIDEOTAPE MADE IN A SOUTH DAKOTA MEATPACKING PLANT THE REPORT DESCRIBING ALLEGATIONS OF UNSANITARY CONDITIONS AT THE FEDERAL BEEF PROCESSORS INCORPORATED PLANT IN RAPID CITY S. D. WAS SCHEDULED TO BE SHOWN LAST NIGHT ON C. B. S. T. V.'S QUOTE FORTY EIGHT HOURS QUOTE JUSTICE BLACKMUN IN RESPONSE TO AN EMERGENCY FILING BY C. B. S. SET ASIDE A RULING BY A SOUTH DAKOTA STATE JUDGE WHO PROHIBITED THE NETWORK FROM USING THE HIDDEN CAMERA MATERIAL THE STATE JUDGE BASED HIS UNUSUAL ORDER ON FEDERAL BEEF'S CONTENTION THAT THE VIDEO WOULD DISCLOSE COMPANY TRADE SECRETS HURT ITS REPUTATION AND DAMAGE THE LOCAL ECONOMY STRESSING FEDERAL BEEF'S DETERMINATION TO EXCLUDE OUTSIDERS FROM ITS FACILITY THE JUDGE SAID THERE IS NO FIRST AMENDMENT INTEREST PROTECTING THE NEWS MEDIA FROM CALCULATED MISDEEDS THE TAPE HAD BEEN MADE BY A FEDERAL BEEF EMPLOYEE WHO COOPERATED WITH C. B. S. THE SOUTH DAKOTA SUPREME COURT ON TUESDAY DECLINED TO SET ASIDE THE JUDGE'S RULING PROMPTING C. B. S. TO APPEAL TO THE JUSTICE BLACKMUN WHO HANDLES EMERGENCY MATTERS ARISING IN THE FEDERAL JURISDICTION THAT INCLUDES SOUTH DAKOTA JUSTICE BLACKMUN'S OPINION REITERATED THAT PRE EMPTIVE BANS OF BROADCASTS OR PUBLICATIONS ARE PARTICULARLY DISFAVORED UNDER THE SUPREME COURT'S INTERPRETATION OF THE CONSTITUTIONAL PROTECTION OF THE PRESS AND FREE SPEECH PLAYTEX PRODUCTS INCORPORATED STAMFORD CONNECTICUT POSTED A LARGE FISCAL FOURTH QUARTER LOSS MAINLY DUE TO THE EXTINGUISHMENT OF DEBT ASSOCIATED WITH ITS RECENTLY COMPLETED RECAPITALIZATION PLAN FOR THE THREE MONTHS ENDED DECEMBER TWENTY FIFTH THE MARKETER OF PERSONAL CARE PRODUCTS POSTED A LOSS OF FORTY FOUR POINT ONE MILLION DOLLARS COMPARED WITH A LOSS OF ABOUT FIVE MILLION DOLLARS IN THE YEAR EARLIER PERIOD THE COMPANY WHICH COMPLETED AN INITIAL PUBLIC OFFERING OF TWENTY MILLION SHARES AT THE END OF LAST MONTH AS PART OF ITS RECAPITALIZATION PLAN DIDN'T PROVIDE PER SHARE NUMBERS THE NINETEEN NINETY THREE QUARTER INCLUDED A THIRTY NINE POINT FOUR MILLION DOLLAR CHARGE FOR DEBT EXTINGUISHMENT SALES FOR THE QUARTER WERE NINETY FOUR POINT EIGHT MILLION DOLLARS UP ABOUT THREE PERCENT FROM NINETY TWO MILLION DOLLARS THE COMPANY SAID IT WILL QUOTE ENHANCE EARNINGS AS A RESULT OF CONTINUED GROWTH FROM CORE PRODUCT CATEGORIES THE DISTRIBUTION OF BANANA BOAT SUN CARE PRODUCTS AND DELEVERAGING THROUGH INTERNALLY GENERATED CASH FLOW QUOTE CINTAS CORPORATION SAID BAD WINTER WEATHER AND THE EARTHQUAKE IN LOS ANGELES THAT INTERRUPTED BUSINESS WOULD CAUSE QUOTE A LOSS IN TOTAL SALES QUOTE OF ABOUT FIVE HUNDRED THOUSAND DOLLARS IN THE FISCAL THIRD QUARTER THE CINCINNATI BASED UNIFORM COMPANY ADDED THERE WILL BE A ONE TIME ADVERSE IMPACT ON NET INCOME OF ABOUT FIVE HUNDRED THOUSAND DOLLARS OR ONE CENT A SHARE FOR THE PERIOD ENDING FEBRUARY TWENTY EIGHTH IN THE YEAR EARLIER PERIOD CINTAS POSTED NET INCOME OF ELEVEN MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE ON SALES OF ONE HUNDRED TWELVE POINT EIGHT MILLION DOLLARS THERE IS NO ON GOING NEGATIVE IMPACT TO THE COMPANY FROM THESE EVENTS CINTAS SAID THE MANUFACTURING FACILITIES HAVE FULLY RECOVERED AND BUSINESS IS BACK TO USUAL CINTAS SAID SNOW TEMPORARILY INTERRUPTED BUSINESS IN ITS MIDWESTERN AND NORTHEASTERN OPERATIONS AND CAUSED THE TEMPORARY CLOSING OF THREE MANUFACTURING PLANTS IN KENTUCKY AND FORCED THE COMPANY TO PROCURE GARMENTS FROM ALTERNATIVE SUPPLIERS AT A HIGHER COST THE U. S. SUSPENDED TRADE TALKS WITH JAPAN ON THE EVE OF A SUMMIT BETWEEN CLINTON AND HOSOKAWA TRADE REPRESENTATIVE KANTOR'S ACTION WAS CLEARLY MEANT TO SIGNAL U. S. DISPLEASURE AT THE PACE OF THE TALKS AND TO PUT MAXIMUM PRESSURE ON TOKYO TO MAKE CONCESSIONS FOREIGN MINISTER HATA IS EXPECTED TO MEET WITH TOP U. S. OFFICIALS TODAY AND KANTOR SAID HE STILL EXPECTED THE TWO SIDES TO REACH AN AGREEMENT IN THE FRAMEWORK TRADE TALKS TOMORROW U. S. HEALTHCARE IS SEEKING PARTNERSHIPS WITH UP TO TWO HUNDRED HOSPITALS A MAJOR SWITCH IN STRATEGY FOR THE H. M. O. WHICH HAS TRADITIONALLY AVOIDED DIRECT INVOLVEMENT IN HEALTH CARE DELIVERY IT PROPOSED GIVING STOCK OPTIONS TO HOSPITALS OR SETTING UP PROFIT SHARING QUOTE TRUSTS QUOTE THAT WOULD BE JOINTLY OWNED THE C. B. O. DIRECTOR TESTIFIED THAT CONSERVATIVE ALTERNATIVES TO CLINTON'S HEALTH CARE PLAN ARE LIKELY TO BE LESS EFFECTIVE IN CURBING HEALTH COSTS FORD REBOUNDED STRONGLY IN THE FOURTH QUARTER TO A PROFIT OF SEVEN HUNDRED NINETEEN MILLION DOLLARS FROM A YEAR AGO LOSS BUT ITS STOCK SLID ONE DOLLAR TO SIXTY EIGHT DOLLARS AND FIFTY CENTS BECAUSE INVESTORS WERE LOOKING FOR EVEN BETTER RESULTS A U. S. APPEALS COURT UPHELD NEW YORK'S RIGHT TO ADOPT CALIFORNIA'S PLAN FOR CUTTING VEHICLE EMISSIONS INCLUDING A MANDATE FOR ELECTRIC CARS IN ANOTHER DEFEAT FOR THE AUTO INDUSTRY INVESTORS STOPPED THE FLOW OF MONEY INTO MUTUAL FUNDS AFTER FRIDAY'S NINETY SIX POINT PLUNGE IN THE DOW JONES INDUSTRIAL AVERAGE A SURVEY OF ONE HUNDRED THIRTY EIGHT DOMESTIC STOCK FUNDS SHOWS IN THE FOUR BUSINESS DAYS THROUGH TUESDAY THE FUNDS HAD AN OUTFLOW OF TWENTY FIVE MILLION DOLLARS STOCKS ADVANCED AS BOND PRICES ROSE AMID SIGNS OF A SMOOTH GOVERNMENT NOTE AUCTION THE DOW JONES INDUSTRIALS INCREASED TWENTY FIVE POINT EIGHT NINE TO THREE THOUSAND NINE HUNDRED THIRTY ONE POINT NINE TWO INTEL PLANS TO OFFER A FIFTY PERCENT FASTER VERSION OF ITS PENTIUM MICROPROCESSOR AND UNVEIL A MIDRANGE MICROCHIP MEANWHILE MACHINES POWERED BY THE CURRENT PENTIUM CHIP ARE HITTING STORE SHELVES ABOUT A YEAR FASTER THAN NEW COMPUTER MODELS HAVE IN THE PAST SPECTRUM FILED A THREE HUNDRED MILLION DOLLAR LAWSUIT AGAINST JOHN SCULLEY CHARGING HIM WITH BREACH OF CONTRACT MISMANAGEMENT AND THEFT OF TRADE SECRETS ELECTRONIC ARTS SAID IT PLANS TO ACQUIRE BRODERBUND SOFTWARE IN A STOCK SWAP VALUED AT ABOUT FOUR HUNDRED MILLION DOLLARS WMX STUNNED INVESTORS WITH ITS SECOND STRAIGHT QUARTER OF LOWER THANANTICIPATED PROFIT AND INDICATED MORE TROUBLE LIES AHEAD SENDING ITS SHARES PLUNGING THREE DOLLARS AND TWENTY FIVE CENTS OR ELEVEN POINT FIVE PERCENT TO TWENTY FIVE DOLLARS E. P. A. RULES PROTECTING BANKS AND SAVINGS INSTITUTIONS FROM HAVING TO PAY FOR CLEANUPS AT HAZARDOUS WASTE SITES WERE INVALIDATED BY A U. S. APPEALS COURT A SHARP BLOW TO LENDERS THE I. R. S. IS MAKING A ONE TIME SETTLEMENT OFFER TO COMPANIES IN TAX DISPUTES INVOLVING HOW THEY ACCOUNTED FOR INTANGIBLE CORPORATE ASSETS THE S. E. C. PROPOSED REQUIRING SECURITIES BROKERS TO KEEP ELECTRONIC RECORDS OF ALL TRADES BY LARGE TRADERS TRYING AGAIN TO MAKE IT EASIER FOR THE AGENCY TO IDENTIFY LARGE TRANSACTIONS THAT TAKE PLACE IN VOLATILE SESSIONS BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED THIRTY SEVEN POINT FOUR ONE UP TWENTY FIVE POINT THREE SIX COMMODITIES OIL FOURTEEN DOLLARS AND SIXTY CENTS A BARREL OFF SIXTY ONE CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY FOUR POINT SEVEN EIGHT UP ZERO POINT FOUR FOUR SPOT INDEX ONE HUNDRED THIRTY ONE POINT ONE FOUR UP ZERO POINT FIVE ONE DOLLAR ONE HUNDRED EIGHT POINT THREE FIVE YEN OFF ZERO POINT FOUR ZERO ONE POINT SEVEN FIVE EIGHT FIVE MARKS OFF ZERO POINT ZERO ZERO FIVE FIVE N. L. INDUSTRIES INCORPORATED POSTED A WIDENED FOURTH QUARTER LOSS ON AN EIGHT POINT ONE PERCENT DROP IN SALES BLAMING WEAK PRICES FOR TITANIUM OXIDE PIGMENT THE CHEMICAL COMPANY'S MAIN PRODUCT THE HOUSTON BASED COMPANY CONTROLLED BY INVESTOR HAROLD SIMMONS THROUGH PUBLICLY TRADED VALHI CORPORATION HAD A LOSS IN THE QUARTER OF FORTY NINE POINT SIX MILLION DOLLARS BEFORE A TWENTY SEVEN POINT EIGHT MILLION DOLLAR CHARGE RELATED TO THE RETIREMENT OF DEBT AND A ONE POINT TWO MILLION DOLLAR ACCOUNTING GAIN THE LOSS WAS TWENTY THREE MILLION DOLLARS A YEAR EARLIER N. L. HAD A LOSS OF SEVENTEEN POINT THREE MILLION DOLLARS SALES DROPPED IN THE LATEST QUARTER TO ONE HUNDRED EIGHTY THREE POINT THREE MILLION DOLLARS FROM ONE HUNDRED NINETY NINE POINT FIVE MILLION DOLLARS FOR ALL NINETEEN NINETY THREE THE NET LOSS WAS ONE HUNDRED NINE POINT EIGHT MILLION DOLLARS AFTER THE ONE TIME ITEMS A YEAR EARLIER THE LOSS TOTALED SEVENTY SIX POINT FOUR MILLION DOLLARS AFTER A THIRTY ONE POINT EIGHT MILLION DOLLAR ACCOUNTING CHARGE SALES FOR THE YEAR WERE DOWN NINE POINT NINE PERCENT TO EIGHT HUNDRED FIVE POINT THREE MILLION DOLLARS FROM EIGHT HUNDRED NINETY THREE POINT FIVE MILLION DOLLARS THE EARNINGS WERE RELEASED AFTER THE STOCK MARKET CLOSED FLEET FINANCIAL GROUP INCORPORATED'S EIGHT BILLION DOLLAR LOAN INITIATIVE FOR LOW INCOME AND SMALL BUSINESS BORROWERS INCLUDES A ONE HUNDRED FORTY MILLION DOLLAR FUND TO BE RUN BY BRUCE MARKS A BANK ACTIVIST WHO HAS BEEN ONE OF FLEET'S HARSHEST CRITICS PEOPLE FAMILIAR WITH THE AGREEMENT SAY BOTH FLEET AND MR. MARKS DECLINED TO DISCUSS THE INITIATIVE REPORTED IN YESTERDAY'S WALL STREET JOURNAL MR. MARKS IS EXECUTIVE DIRECTOR OF THE UNION NEIGHBORHOOD ASSISTANCE CORPORATION A SMALL BOSTON HOUSING ADVOCACY GROUP AFFILIATED WITH THE HOTEL WORKERS UNION HERE THE INITIATIVE WHICH WILL AMOUNT TO ABOUT EIGHT BILLION DOLLARS OVER THREE YEARS WILL BE ANNOUNCED TODAY IN WASHINGTON IT FOLLOWS TWO YEARS OF CRITICISM OF FLEET'S LENDING IN THE INNER CITY AND TO MINORITIES THE PROVIDENCE R. I. BANK'S CONSUMER CREDIT UNIT BASED IN ATLANTA HAS BEEN ACCUSED OF UNUSUALLY HIGH INTEREST RATES AND PREDATORY PRACTICES MR. MARKS WHO HAS CALLED HIMSELF QUOTE THE BANKING INDUSTRY'S WORST NIGHTMARE QUOTE BECAUSE OF HIS ADVOCACY WORK WILL HELP RUN A LOAN POOL OF ONE HUNDRED FORTY MILLION DOLLARS FOR LOW INCOME BORROWERS IN MASSACHUSETTS NEW YORK RHODE ISLAND NEW JERSEY AND WASHINGTON D. C. BANKING INSIDERS SAID ONLY A FEW DAYS AFTER ACQUIRING TWENTY FOUR POINT NINE PERCENT OF THE BRITISH DAILY THE INDEPENDENT IRISH NEWSPAPER MAGNATE TONY O'REILLY CONTINUED HIS INTERNATIONAL BUYING SPREE BY PURCHASING THIRTY ONE PERCENT OF ARGUS NEWSPAPERS SOUTH AFRICA'S LARGEST NEWSPAPER GROUP THE VALUE OF THE TRANSACTION WASN'T DISCLOSED AND DEPENDS IN PART ON THE FUTURE FLOTATION OF PART OF THE REMAINDER OF ARGUS STOCK BUT MR. O'REILLY SAID IT INVOLVED QUOTE A BALLPARK FIGURE QUOTE OF ABOUT ONE HUNDRED TWENTY FIVE MILLION RAND THIRTY SIX POINT FOUR MILLION DOLLARS ARGUS CONTROLS SEVEN DAILIES FIVE WEEKEND NEWSPAPERS AND ONE WEEKLY NEWSPAPER ITS DOMINANT POSITION IN THE MEDIA HAD RECENTLY COME UNDER ATTACK BY THE AFRICAN NATIONAL CONGRESS WHICH OBJECTS TO THE WAY THE COUNTRY'S ECONOMY IS CONCENTRATED IN THE HANDS OF A FEW CORPORATE BEHEMOTHS THE STAKE MR. O'REILLY IS PURCHASING IS TO BE BOUGHT FROM ITS MAJOR SHAREHOLDERS JOHANNESBURG CONSOLIDATED INVESTMENT COMPANY AND ANGLO AMERICAN CORPORATION A GIANT CONGLOMERATE THAT HAD BEEN EAGER TO DIVEST ITSELF OF ITS HOLDING TO DIFFUSE THE OWNERSHIP COMPLAINTS LITTLEFIELD ADAMS AND COMPANY A SUBJECT OF A SECURITIES AND EXCHANGE COMMISSION INQUIRY ASKED THAT TRADING IN ITS SHARES BE HALTED BECAUSE OF PENDING CORPORATE NEWS BUT THE COMPANY WHICH SELLS LEISURE WEAR AND MEDICAL PRODUCTS DIDN'T MAKE ANY ANNOUNCEMENT BY THE CLOSE OF BUSINESS THE AMERICAN STOCK EXCHANGE DIDN'T BEGIN TRADING THE STOCK YESTERDAY MORNING SAYING A COMPANY ANNOUNCEMENT WAS EXPECTED LATER YESTERDAY THE EXCHANGE SAID TRADING WOULDN'T RESUME A LITTLEFIELD SPOKESMAN SAID HE EXPECTS THE COMPANY TO MAKE THE ANNOUNCEMENT WITHIN A FEW DAYS ON TUESDAY LITTLEFIELD'S STOCK FELL ONE POINT THREE SEVEN FIVE DOLLARS TO NINETEEN POINT THREE SEVEN FIVE DOLLARS AFTER THE COMPANY ISSUED A NEWS RELEASE ABOUT THE S. E. C. INQUIRY LITTLEFIELD SAID IT ISSUED THAT RELEASE ONLY BECAUSE A RECENT TELEVISION REPORT HAD SUGGESTED THE S. E. C. PROBE WAS NEW WHEN IN FACT IT WAS ANNOUNCED LAST SUMMER BLOOMBERG P. L.'S BLOOMBERG FINANCIAL MARKETS IS EXPECTED TO ANNOUNCE TODAY THAT IT WILL LAUNCH A BUSINESS TELEVISION NEWS NETWORK TO BE BROADCAST BY GENERAL MOTORS CORPORATION'S UNIT HUGHES ELECTRONICS CORPORATION'S DIRECTV SATELLITE MICHAEL BLOOMBERG SAID THE PROGRAM TO BE PRODUCED IN ALLIANCE WITH THE U. S. CHAMBER OF COMMERCE WILL OFFER THIRTEEN HOURS OF BUSINESS NEWS SIX A. M. TO SEVEN P. M. E. S. T. STARTING IN MAY HE SAID HE EXPECTS THE NETWORK BLOOMBERG DIRECT TO OFFER TWENTY FOUR HOUR A DAY PROGRAMING BY YEAR END DIRECTV CUSTOMERS WILL USE A SATELLITE DISH AND A DECODER BOX TO RECEIVE THE SIGNALS LAST MONTH DOW JONES AND COMPANY PUBLISHER OF THIS NEWSPAPER ANNOUNCED A SIMILAR DIRECT BROADCASTING SERVICE IT PURCHASED A MINORITY STAKE IN HUBBARD BROADCASTING INCORPORATED AND WILL PROVIDE BROADCASTING FOR HUBBARD'S NEW U. S. SATELLITE BROADCASTING VENTURE A NATIONAL DIRECT BROADCAST SATELLITE SERVICE BEGINNING OPERATION IN APRIL BLOOMBERG L. P.'S NAME WAS MISSTATED AS BLOOMBERG P. L. IN AN ARTICLE YESTERDAY THAT DESCRIBED BLOOMBERG'S PLANS TO LAUNCH A BUSINESS NEWS TELEVISION NETWORK DIGITAL MICROWAVE CORPORATION HAD A FISCAL THIRD QUARTER NET LOSS OF TWENTY FIVE POINT FOUR MILLION DOLLARS DUE TO THE SETTLEMENT OF A LAWSUIT AND THE ANTICIPATED LIQUIDATION OF A VENTURE IN MALAYSIA THE MAKER OF COMMUNICATIONS PRODUCTS IN SAN JOSE CALIFORNIA SAID THE QUARTER ENDED DECEMBER THIRTY FIRST INCLUDED A ONE TIME CHARGE OF TWENTY MILLION DOLLARS FOR EXPENSES ASSOCIATED WITH SETTLING A CLASS ACTION LAWSUIT FILED IN NINETEEN NINETY WHICH HAD ALLEGED SECURITIES LAWS VIOLATIONS THE COMPANY SAID THE SETTLEMENT IS CONTINGENT ON ITS ABILITY TO COMPLETE A FINANCING AND ON COURT APPROVAL IN ADDITION THE THIRD QUARTER INCLUDED A ONE TIME CHARGE OF SEVEN MILLION DOLLARS FOR WRITE OFFS ASSOCIATED WITH A JOINT VENTURE IN MALAYSIA DIGITIAL MICROWAVE HAD A NET LOSS FOR THE QUARTER OF TWENTY FIVE POINT FOUR MILLION DOLLARS OR TWO DOLLARS AND THREE CENTS A SHARE COMPARED WITH YEAR EARLIER NET INCOME OF ONE POINT ONE MILLION DOLLARS OR NINE CENTS A SHARE SALES ROSE FOURTEEN PERCENT TO THIRTY POINT SIX MILLION DOLLARS COMPARED WITH TWENTY SIX POINT EIGHT MILLION DOLLARS A YEAR EARLIER THE SPECIAL COUNSEL INVESTIGATING THE WHITEWATER AFFAIR WILL LOOK INTO A PUBLISHED REPORT ALLEGING THAT HILLARY RODHAM CLINTON'S FORMER LAW FIRM SHREDDED DOCUMENTS RELATED TO THE MATTER THE ROSE LAW FIRM YESTERDAY DENIED AN ACCOUNT IN THE WASHINGTON TIMES QUOTING AN UNIDENTIFIED EMPLOYEE OF THE ROSE LAW FIRM AS SAYING HE HAD PARTICIPATED IN DESTROYING WHITEWATER DOCUMENTS LAST THURSDAY THE LITTLE ROCK ARKANSAS LAW FIRM REPRESENTED MADISON GUARANTY SAVINGS AND LOAN WHICH IS AT THE CENTER OF THE WHITEWATER AFFAIR BECAUSE ITS OWNER WAS A PARTNER OF THE CLINTONS IN THE FAILED REAL ESTATE DEVELOPMENT DEAL NOW UNDER INVESTIGATION BY SPECIAL COUNSEL ROBERT B. FISKE JUNIOR RONALD M. CLARK THE MANAGING PARTNER OF THE ROSE LAW FIRM SAID YESTERDAY THAT QUOTE THERE HAS BEEN NO DESTRUCTION OF DOCUMENTS TO MY KNOWLEDGE QUOTE HE SAID THE LAW FIRM HAS BEEN SYSTEMATICALLY ACCUMULATING AND THEN SAFE KEEPING ANY DOCUMENTS RELATED TO MADISON TO MY KNOWLEDGE HE ADDED THE FIRM HAS NO SUBSTANTIAL DOCUMENTS WHATSOEVER WITH RESPECT TO WHITEWATER MR. CLARK ALSO SAID THAT LAST MONTH THE ROSE LAW FIRM RETAINED VINSON AND ELKINS A FIVE HUNDRED THIRTY LAWYER HOUSTON LAW FIRM TO REPRESENT IT IN ANYTHING AND EVERYTHING THAT ARISES OUT OF THIS MATTER FEDERAL FISH REGULATORS UNVEILED A MUCH ANTICIPATED PLAN TO SAVE NORTHWESTERN SALMON BUT THE PLAN DIFFERS ONLY MODESTLY FROM PAST FAILED EFFORTS TO HELP THE RAPIDLY DECLINING FISH THE PLAN WAS WORKED OUT BY THE NATIONAL MARINE FISHERIES SERVICE IN COORDINATION WITH THREE AGENCIES INVOLVED IN THE OPERATION OF THE HUGE DAMS ALONG THE COLUMBIA AND SNAKE RIVERS IN OREGON WASHINGTON AND IDAHO THOSE DAMS ARE THE MAIN CULPRITS IN THE SALMON'S RAPID DECLINE WHICH HAS SEEN FISH NUMBERS PLUNGE TO LESS THAN TWO MILLION TODAY FROM ABOUT SIXTEEN MILLION A FEW DECADES AGO THE DAMS MINCE SALMON BY THE MILLIONS AND SLOW DOWN RIVER FLOWS MAKING IT IMPOSSIBLE FOR SALMON TO MIGRATE BETWEEN SPAWNING GROUNDS AND THE SEA THE CENTERPIECE OF THE NEW PLAN IS A PROPOSAL TO INCREASE FLOWS IN THE TWO RIVERS BY ROUGHLY FIFTY PERCENT AT CERTAIN TIMES OF THE YEAR IN HOPES OF SPEEDING SALMON DOWNSTREAM SOME ENVIRONMENTALISTS CALLED THE PLAN A STEP IN THE RIGHT DIRECTION HOWEVER MOST ENVIRONMENTALISTS AND MANY SCIENTISTS BELIEVE MORE DRASTIC CHANGES IN THE WAY THE DAMS ARE OPERATED ARE NEEDED TO SAVE THE FISH COMPUTERS ARE PRETTY GOOD AT PRODUCING PAPER COPIES OF DOCUMENTS CREATED ELECTRONICALLY BUT REVERSING THE PROCESS HAS BEEN A KILLER GETTING PAPER DOCUMENTS INTO YOUR COMPUTER TURNING THEM INTO ELECTRONIC FILES AND THEN ORGANIZING THEM EFFECTIVELY HAS BEEN NEXT TO IMPOSSIBLE FOR MAINSTREAM USERS THERE ARE OF COURSE MANY SCANNERS DESIGNED TO CONVERT HARD COPY TO ELECTRONIC IMAGES AND EVEN ELABORATE DOCUMENT IMAGING AND MANAGEMENT SYSTEMS HOWEVER MOST OF THESE THINGS ARE TOO EXPENSIVE TOO BULKY OR TOO HARD TO INSTALL AND USE FOR NONTECHNICAL FOLKS OR SMALL COMPANIES THAT'S A MAJOR REASON THE PROMISE OF A QUOTE PAPERLESS OFFICE QUOTE HAS BEEN AN EMPTY ONE NOW A LITTLE STARTUP COMPANY VISIONEER COMMUNICATIONS OF PALO ALTO CALIFORNIA EIGHT HUNDRED SEVEN HUNDRED EIGHTY SEVEN SEVEN THOUSAND SEVEN HAS CRACKED THE PROBLEM IT HAS CREATED A SMALL SIMPLE INEXPENSIVE AND ELEGANT SCANNING SYSTEM CALLED PAPERMAX THAT MAKES IT CHILD'S PLAY TO LOAD IMAGES OF PAPER DOCUMENTS INTO YOUR COMPUTER AND ORGANIZE AND MANAGE THEM PAPERMAX IS ONE OF THE MOST IMPRESSIVE OFFICE TECHNOLOGY PRODUCTS I'VE SEEN IN YEARS THE VISIONEER PRODUCT WHICH LISTS FOR FOUR HUNDRED NINETY NINE DOLLARS CONSISTS OF TWO PARTS FIRST IS THE HARDWARE IT'S A STATIONARY DEVICE THAT PACKS MOST OF THE FUNCTIONALITY OF A BIG HEAVY FLATBED SCANNER INTO A STYLISH UNIT THAT'S JUST THREE INCHES DEEP LESS THAN FOUR INCHES HIGH ABOUT A FOOT WIDE AND WEIGHS ONLY TWO POINT FIVE POUNDS THE WHOLE THING IS SO SMALL THAT IT CAN BE TUCKED INTO THE SPACE BETWEEN A KEYBOARD AND THE COMPUTER OR MONITOR OR TRANSPORTED EASILY FOR USE WITH A PORTABLE COMPUTER DOCUMENTS ARE FED INTO A SLOT ON THE FRONT OF THE PAPERMAX AND RETURNED THROUGH AN OPENING AT THE TOP IT ATTACHES TO THE COMPUTER BY SIMPLY PLUGGING INTO A SERIAL PORT THERE'S NO NEED TO INSERT ANY CIRCUIT BOARDS THE SCANNER ONLY WORKS WITH COMPUTERS RUNNING MICROSOFT'S WINDOWS SOFTWARE BUT VISIONEER PROMISES A VERSION FOR APPLE MACINTOSH COMPUTERS THIS SPRING THE SECOND PART OF THE SYSTEM IS A BEAUTIFULLY DESIGNED SOFTWARE PROGRAM CALLED MAXMATE WHICH CONTROLS THE SCANNER AND ALLOWS USERS TO ORGANIZE VIEW ANNOTATE AND TRANSMIT THE IMAGES OF DOCUMENTS SCANNED BY PAPERMAX OPERATING THE SYSTEM COULDN'T BE SIMPLER YOU DON'T EVEN HAVE TO PUSH A BUTTON FLIP A SWITCH OR MANUALLY START UP THE MAXMATE PROGRAM AT ANY TIME NO MATTER WHAT PROGRAM YOU'RE USING YOU CAN POP A PIECE OF PAPER INTO THE SCANNER IT AUTOMATICALLY TURNS ON GRABS THE PAPER AND SCANS IT VERY VERY QUICKLY A WINDOW POPS UP ON THE SCREEN TO SHOW THE IMAGE AS IT'S BEING RECEIVED THEN THE MAXMATE SOFTWARE LAUNCHES ITSELF SO YOU CAN WORK WITH THE NEW IMAGE IN MY TESTS THE SCANNER HANDLED EVERYTHING FROM BUSINESS LETTERS TO GLOSSY FLIERS TO CLIPPINGS RIPPED FROM THIS NEWSPAPER AND A CRINKLED MAGAZINE PAGE WITH A TEAR IN THE EDGE IT EVEN STRAIGHTENS OUT THE IMAGE IF YOU PUT THE PAPER IN CROOKED THE SOFTWARE IS VERSATILE IT PRESENTS ICONS FOR EACH SCANNED DOCUMENT AND LETS YOU ZOOM IN ON ANY ONE YOU CAN ANNOTATE THE DOCUMENTS WITH AN ELECTRONIC YELLOW HIGHLIGHTER OR BY PLACING ELECTRONIC COMMENTS AND NOTATIONS ON IT YOU ALSO CAN COMPILE DOCUMENTS INTO STACKS BY DRAGGING THEIR ICONS INTO A PILE ON THE SCREEN MAXMATE COMBINES THE PAGES INTO A SINGLE FILE YOU CAN FLIP THROUGH PAGE BY PAGE YOU CAN SEARCH FOR DOCUMENTS BY FILE NAME DATE OR BY WORDS IN ANNOTATIONS YOU'VE MADE EVEN BETTER YOU CAN CREATE STACKS THAT COMBINE SCANNED IN PAGES AND ELECTRONIC DOCUMENTS YOU CREATE IN WORD PROCESSORS SPREADSHEETS AND OTHER PROGRAMS YOU MERELY PRINT FROM THESE OTHER PROGRAMS TO THE MAXMATE SOFTWARE AND THE ELECTRONIC FILES APPEAR IN MAXMATE THE SOFTWARE ALSO HAS PLENTY OF OPTIONS FOR RE USING OR TRANSMITTING SCANNED IMAGES YOU CAN REPRINT THE SCANNED IMAGES OR FAX THEM ELECTRONICALLY IF YOU HAVE A FAX MODEM AND SOFTWARE YOU CAN SEND THEM TO OTHER COMPUTERS VIA ELECTRONIC MAIL OR FLOPPY DISK VISIONEER SUPPLIES FREE SOFTWARE THAT LETS USERS OF MACINTOSHES OR I. B. M. COMPATIBLES WITHOUT WINDOWS VIEW THE SCANNED DOCUMENT IMAGES SO WHAT ARE THE DOWNSIDES OF PAPERMAX IT'S DESIGNED AS A SINGLE USER BUSINESS TOOL TO HANDLE A RELATIVELY LOW VOLUME OF DOCUMENTS THAT MAINLY CONSIST OF TEXT AND LIMITED GRAPHICS IT ACCEPTS JUST ONE SHEET AT A TIME AND ISN'T MEANT FOR HIGH VOLUME SCANNING WHILE IT CAN SCAN PHOTOGRAPHS IT ISN'T DESIGNED TO DO PROFESSIONAL GRAPHICAL RENDERING AND MANIPULATION IT ALSO LACKS ANY OPTICAL CHARACTER RECOGNITION ABILITY SO IT CAN'T TRANSLATE SCANNED DOCUMENTS INTO EDITABLE TEXT THEY EXIST IN YOUR COMPUTER ONLY AS PICTURES OF THE PAPER ORIGINALS UNLESS YOU BUY TRANSLATION SOFTWARE WHAT'S MORE LIKE MANY OTHER ADD ON DEVICES IT MUST COMPETE FOR A LIMITED NUMBER OF SERIAL PORTS ON THE I. B. M. COMPATIBLE P. C. SO YOU MAY NEED TO RECONFIGURE A MOUSE OR MODEM AND ONE FEATURE IN WHICH YOU CAN COMBINE ELECTRONIC DOCUMENTS WITH SCANNED IMAGES DOESN'T WORK WELL ON COMPUTERS THAT USE A FEW MODELS OF CERTAIN VIDEO CARDS INCLUDING THOSE FROM ORCHID AND DIAMOND FINALLY THIS BREAKTHROUGH PRODUCT IS JUST COMING ON THE MARKET AND MAY BE HARD TO BUY IN STORES UNLESS YOU ASK THEM TO ORDER IT VISIONEER SAYS ONE MAIL ORDER HOUSE CLUB P. C. EIGHT HUNDRED TWO HUNDRED FIFTY EIGHT TWO THOUSAND SEVEN HUNDRED TWENTY ONE STOCKS THE PAPERMAX AND THE COMPANY EXPECTS OTHER OUTLETS TO DO SO SOON IF YOU WANT TO GET RID OF PILES OF PAPER AND STORE DOCUMENTS ELECTRONICALLY IT'S WORTH THE TROUBLE TO TRACK DOWN A PAPERMAX CALIFORNIA GOVERNOR PETE WILSON'S OFFICIAL IN CHARGE OF DAMAGE ESTIMATES FOR THE JANUARY SEVENTEENTH LOS ANGELES AREA EARTHQUAKE SAID THE COST MAY BE QUOTE NEAR THE LOWER END QUOTE OF A RANGE BETWEEN THIRTEEN BILLION DOLLARS AND TWENTY BILLION DOLLARS AT A NEWS CONFERENCE IN PASADENA RICHARD ANDREWS DIRECTOR OF THE STATE'S OFFICE OF EMERGENCY SERVICES SAID CURRENT ESTIMATES PUT DAMAGES PERHAPS AT FIFTEEN BILLION DOLLARS IN THE DAYS IMMEDIATELY AFTER THE QUAKE STATE OFFICIALS HAD ESTIMATED THAT DAMAGE FROM THE QUAKE WOULD BE BETWEEN FIFTEEN BILLION DOLLARS AND THIRTY BILLION DOLLARS AND HAD CALLED SUCH NUMBERS CONSERVATIVE AS WE CONTINUE WITH OUR INSPECTIONS AND GET A BETTER HANDLE ON THE POSSIBLE DAMAGE TO UNDERGROUND WATER AND SEWAGE LINES AND PRIVATE DAMAGE WE WILL UPDATE THOSE FIGURES FOR YOU PERIODICALLY MR. ANDREWS SAID SEPARATELY IN A LETTER TO GOVERNOR WILSON STATE DIRECTOR OF FINANCE RUSSELL S. GOULD ESTIMATED THE PUBLIC COST OF THE QUAKE AT ELEVEN POINT SIX BILLION DOLLARS TO THE FEDERAL GOVERNMENT ONE POINT NINE BILLION DOLLARS TO THE STATE OF CALIFORNIA AND ONE HUNDRED THIRTY FIVE MILLION DOLLARS TO STATE AND LOCAL GOVERNMENTS MR. GOULD'S LETTER STRESSED HOWEVER THAT THE ESTIMATES WILL CHANGE OVER TIME AS NEW INFORMATION BECOMES AVAILABLE MARUBENI CORPORATION ONE OF JAPAN'S SIX LARGEST GENERAL TRADING HOUSES ANNOUNCED THAT IT CUT ITS FORECAST FOR UNCONSOLIDATED PROFIT FOR THE YEAR ENDING MARCH THIRTY FIRST TO AROUND SEVEN BILLION YEN SIXTY FOUR POINT FOUR MILLION DOLLARS THE COMPANY SAID THE REVISION IS A RESULT OF EXTRAORDINARY LOSSES STEMMING IN PART FROM LIQUIDATION OF ITS UNPROFITABLE FINANCIAL UNIT MARUBENI LEASING CORPORATION THE FORECAST WAS CUT FORTY SIX PERCENT FROM THIRTEEN BILLION YEN AND WOULD REPRESENT A THIRTY SIX PERCENT DROP FROM THE TEN POINT NINE TWO BILLION YEN PROFIT THE COMPANY POSTED LAST FISCAL YEAR SLUGGISHNESS IN JAPAN'S STOCK MARKET LED TO SUBSTANTIAL LOSSES IN THE SPECIFIED MONEY TRUSTS AND FUND TRUSTS MANAGED BY MARUBENI LEASING A GROUP OF THE NATION'S BIGGEST MAILERS URGED THE POSTAL SERVICE'S BOARD TO RAISE RATES BY TEN POINT THREE PERCENT A MOVE DESIGNED TO HEAD OFF A LARGER INCREASE THE GROUP CALLED THE MAILER'S COUNCIL SAID IT WAS THE FIRST TIME THE BUSINESS COMMUNITY HAS UNITED TO SEEK AN INCREASE THE COUNCIL IS COMPRISED OF SIXTY COMPANIES AND TRADE ASSOCIATIONS REPRESENTING THE POSTAL SERVICE'S BIGGEST CUSTOMERS THE BOOST BEING CONSIDERED BY THE POSTAL BOARD WOULD RAISE RATES FOR ALL CLASSES OF MAIL BY TEN POINT THREE PERCENT THE PRICE OF MAILING A TYPICAL FIRST CLASS LETTER WOULD RISE TO THIRTY TWO CENTS POSTMASTER GENERAL MARVIN RUNYON HAS SAID HE BACKS THE INCREASE RATHER THAN AN OVERALL THIRTEEN POINT EIGHT PERCENT RATE RISE THAT WOULD HIT VARIOUS CLASSES OF MAIL DIFFERENTLY THE BOARD IS EXPECTED TO MAKE ITS DECISION NEXT MONTH BUT ANY RATE INCREASE WOULDN'T TAKE EFFECT UNTIL NEXT YEAR MAILER'S COUNCIL OFFICIALS SAID APPROVAL OF THE TEN POINT THREE PERCENT RISE WOULD KEEP THE BUSINESS COMMUNITY FROM SUING OVER THE RATE INCREASE EARLIER BOOSTS HAVE LED TO LITIGATION AS GROUPS JOCKEYED OVER WHICH CLASSES OF MAIL WOULD BEAR THE HIGHEST BURDEN THE BUSINESS ASSOCIATION SAID IT REALIZES THAT THE SMALLER INCREASE WOULD ONLY BE A STOPGAP THE RISE WOULD BE QUOTE MINIMALLY SUFFICIENT FOR THE POSTAL SERVICE'S NEEDS FOR THE NEXT TWO YEARS QUOTE THE MAILER'S COUNCIL MANAGING DIRECTOR ARTHUR SACKLER SAID C. A. E. INCORPORATED RESPONDING TO A SLOWDOWN IN ORDERS FROM THE U. S. MILITARY FOR SIMULATION AND TRAINING SYSTEMS SAID IT WILL CLOSE ITS FACILITY AT SILVER SPRING MARYLAND BY THE END OF THE YEAR C. A. E. SAID THE FACILITY'S PRODUCT LINES WILL BE TRANSFERRED TO BINGHAMTON N. Y. HEADQUARTERS OF THE COMPANY'S C. A. E. LINK MILITARY SIMULATION UNIT THE CLOSURE WILL RESULT IN ABOUT ONE HUNDRED SIXTY LAYOFFS AND ANOTHER FIFTY FIVE OR SO EMPLOYEES WILL BE OFFERED TRANSFERS TO BINGHAMTON C. A. E. SAID C. A. E. LINK HAS THREE THOUSAND EIGHT HUNDRED EMPLOYEES IN TOTAL C. A. E. BASED IN TORONTO SAID LAST WEEK IT HAD SET ASIDE FROM ITS EARNINGS THIRTY THREE MILLION CANADIAN DOLLARS U.S.TWENTY FOUR POINT MILLION DOLLARS TO COVER THE COSTS OF REDUCING C. A. E. LINK'S OPERATIONS C. A. E. SAID IT PLANS TO ANNOUNCE MORE COST SAVING MEASURES LATER THE COMPANY ALSO WROTE DOWN THE VALUE OF CAELINK BY THREE HUNDRED NINETY SIX POINT FIVE MILLION CANADIAN DOLLARS OR SIXTY PERCENT TO REFLECT REDUCED DEMAND IN THE INDUSTRY THE SILVER SPRING SITE MAKES TRIDENT SUBMARINE COMMAND AND CONTROL TRAINERS ANTISUBMARINE WARFARE TRAINERS FOR PATROL AIRCRAFT AND OTHER TRAINING DEVICES ELECTRONIC ARTS INCORPORATED SAID IT WILL ACQUIRE BRODERBUND SOFTWARE INCORPORATED IN A STOCK SWAP VALUED AT ABOUT FOUR HUNDRED MILLION DOLLARS THE TRANSACTION UNITES TWO LEADERS IN ATTRACTIVE NICHES OF THE SOFTWARE MARKET AND COULD INCREASE THEIR ABILITY TO FEND OFF TURF INCURSIONS FROM NEW ENTRANTS SUCH AS MICROSOFT CORPORATION THE INDUSTRY'S REIGNING LEADER BRODERBUND IN PARTICULAR SAID ELECTRONIC ARTS WOULD HELP THE SMALLER COMPANY EXPAND INTO INTERNATIONAL MARKETS AND NEW HARDWARE OPPORTUNITIES BRODERBUND FOUNDED IN NINETEEN EIGHTY BY SEVERAL MEMBERS OF THE CARLSTON FAMILY HAS FOCUSED ON EDUCATIONAL AND CREATIVITY SOFTWARE IN ADDITION TO GAMES ITS PRODUCTS INCLUDE THE GEOGRAPHICAL GAME SERIES THAT STARTED WITH QUOTE WHERE IN THE WORLD IS CARMEN SANDIEGO QUOTE ELECTRONIC ARTS FOUNDED IN NINETEEN EIGHTY TWO SPECIALIZES IN GAMES AND ENTERTAINMENT TITLES FOR PERSONAL COMPUTERS AND VIDEO GAME MACHINES WITH SPECIALTIES THAT INCLUDE A POPULAR LINE OF SPORTS TITLES TRIP HAWKINS THE COMPANY'S FORMER CHIEF EXECUTIVE LEFT TO START A CLOSELY WATCHED MULTIMEDIA CONCERN THREE D. O. COMPANY WHICH IS ATTEMPTING TO SET A NEW STANDARD FOR GAME SYSTEMS THAT HOOK UP TO LIVING ROOM TELEVISIONS MR. HAWKINS WHO REMAINS CHAIRMAN OF ELECTRONIC ARTS ALSO PLEDGED TO VOTE HIS SEVEN PERCENT STAKE FOR THE ACQUISITION LEE ISGUR AN ANALYST AT VOLPE WELTY AND COMPANY CALLED THE MERGER A BRILLIANT MOVE FOR BOTH COMPANIES IT WILL HELP ELECTRONIC ARTS GAIN AN INSTANT BOOST INTO THE ENTERTAINMENT MARKET HE SAID AND HELP BRODERBUND GROW MORE QUICKLY THEY ARE VERY CASH RICH COMPANIES MR. ISGUR SAID NEITHER OF THEM HAS TO DO ANYTHING UNDER THE AGREEMENT HOLDERS OF BRODERBUND COMMON STOCK WILL RECEIVE ONE POINT SIX COMMON SHARES OF ELECTRONIC ARTS STOCK FOR EACH BRODERBUND SHARE ABOUT FIFTEEN POINT FOUR MILLION COMMON SHARES OF ELECTRONIC ARTS WILL BE EXCHANGED FOR BRODERBUND STOCK REPRESENTING ABOUT TWENTY FIVE PERCENT OF THE COMBINED COMPANY ON A PRO FORMA BASIS DOUG CARLSTON BRODERBUND'S CHAIRMAN AND CHIEF EXECUTIVE WILL JOIN ELECTRONIC ARTS' BOARD INCREASING IT TO EIGHT MEMBERS MR. CARLSTON WHO HOLDS AN EIGHTEEN PERCENT STAKE IN BRODERBUND HAS AGREED TO VOTE HIS SHARES IN FAVOR OF THE MERGER FOR ITS LAST FISCAL YEAR ENDED AUGUST THIRTY FIRST BRODERBUND'S PROFIT ROSE FORTY ONE PERCENT TO THIRTEEN POINT SIX MILLION DOLLARS OR ONE DOLLAR AND THIRTY SIX CENTS A SHARE FROM NINE POINT SEVEN MILLION DOLLARS OR NINETY NINE CENTS A SHARE A YEAR EARLIER REVENUE WAS NINETY FIVE POINT SIX MILLION DOLLARS FOR THE NINE MONTHS ENDED DECEMBER THIRTY FIRST ELECTRONIC ARTS EARNED THIRTY THREE POINT FIVE MILLION DOLLARS OR SIXTY SEVEN CENTS A SHARE ON REVENUE OF THREE HUNDRED ELEVEN MILLION DOLLARS COMPARED WITH YEAR EARLIER NET INCOME OF TWENTY TWO MILLION DOLLARS OR FORTY EIGHT CENTS A SHARE ON REVENUE OF TWO HUNDRED TWELVE MILLION DOLLARS NEWS OF THE TRANSACTION CAME AFTER MARKETS CLOSED IN NASDAQ STOCK MARKET TRADING YESTERDAY ELECTRONIC ARTS CLOSED AT TWENTY FIVE DOLLARS AND FIFTY CENTS A SHARE DOWN SEVENTY FIVE CENTS OR TWO POINT NINE PERCENT ALSO ON NASDAQ BRODERBUND CLOSED AT FORTY ONE DOLLARS AND TWENTY FIVE CENTS UP THREE DOLLARS AND SEVENTY FIVE CENTS OR TEN PERCENT E. N. D. THE NORTH ATLANTIC TREATY ORGANIZATION ORDERED BOSNIA'S SERBS TO END THEIR SHELLING OF SARAJEVO AND TO WITHDRAW ALL HEAVY WEAPONS OR FACE AIR STRIKES SIMILAR THREATS HAVE BEEN ISSUED AND IGNORED IN THE PAST BUT PRESIDENT CLINTON WHO LOBBIED THE PLAN HARD WITH HIS NATO ALLIES INSISTED THAT THIS TIME WOULD BE DIFFERENT QUOTE WE HOPE THAT BOSNIAN SERB ACTIONS WILL MAKE AIR STRIKES UNNECESSARY QUOTE MR. CLINTON SAID BUT NO ONE SHOULD DOUBT NATO'S RESOLVE NATO IS NOW SET TO ACT EVEN THEN U. S. OFFICIALS CAUTIONED THAT AIR STRIKES COULD HAVE A LIMITED EFFECT ON ENDING THE SUFFERING AND BLOODSHED IN BOSNIA NO ONE EXPECTS THIS TO END THE CONFLICT OR EVEN LIFT THE SIEGE OF SARAJEVO SAID A TOP U. S. OFFICIAL OFFICIALS SAID THEY WERE HOPING THAT YESTERDAY'S ULTIMATUM WOULD DETER FURTHER SERBIAN ATTACKS AND PAVE THE WAY FOR NEW PEACE NEGOTIATIONS THE PLAN HAMMERED OUT IN A THIRTEEN HOUR MEETING OF NATO AMBASSADORS IN BRUSSELS GIVES THE SERBS TEN DAYS TO EITHER WITHDRAW THEIR ARTILLERY MORTARS AND TANKS TWELVE MILES BEYOND THE CENTER OF SARAJEVO OR PLACE THOSE WEAPONS UNDER UNITED NATIONS CONTROL ANY SHELLING BEFORE THAT COULD FACE IMMEDIATE RETALIATION U. S. OFFICIALS SAID THAT AIR STRIKES COULD BE LAUNCHED AGAINST ARTILLERY EMPLACEMENTS ANTIAIRCRAFT WEAPONS AS WELL AS THEIR SUPPORT EQUIPMENT BOSNIA'S SERBS HAVE AT LEAST ONE HUNDRED HEAVY WEAPONS ENCIRCLING SARAJEVO BOSNIA'S MUSLIMS WHO HAVE A SMALL FRACTION OF THAT WON'T BE REQUIRED TO WITHDRAW OR TURN OVER THEIR WEAPONS BUT THE NO SHOOT ORDER WILL APPLY TO THEM AS WELL EVEN BEFORE THE NATO ULTIMATUM WAS ISSUED BOSNIA'S SERBS TOLD THE UNITED NATIONS COMMANDER IN SARAJEVO THAT THEY WOULD WITHDRAW THEIR WEAPONS FROM AROUND THE BESIEGED CAPITAL FACED WITH SIMILAR THREATS IN THE PAST THE SERBS HAVE MADE SIMILAR PROMISES BUT FAILED TO FOLLOW THROUGH WHETHER THEY WILL HONOR THEIR COMMITMENT THIS TIME IS FAR FROM CERTAIN IN ADDITION BOSNIA'S MUSLIM LED GOVERNMENT AND THE BOSNIAN SERB FORCES AGREED TO YET ANOTHER CEASE FIRE AROUND SARAJEVO YESTERDAY ALTHOUGH ALL PREVIOUS CEASE FIRES HAVE BEEN BROKEN THE U. N. COMMANDER IN BOSNIA GENERAL MICHAEL ROSE WELCOMED THE LATEST AGREEMENT AS A VERY SMALL START ON A VERY LARGE PROBLEM WHILE MR. CLINTON ACKNOWLEDGED THAT AMERICAN PILOTS WHO WILL BE PART OF A MULTINATIONAL FORCE COULD FACE SOME RISK FROM SERB ARTILLERY HE EMPHASIZED THAT THERE WOULDN'T BE ANY AMERICAN GROUND TROOPS INVOLVED IN THE OPERATION PORTRAYING THE BOSNIAN WAR AS A EUROPEAN PROBLEM THE PRESIDENT SEEMED TO PLAY DOWN A POSSIBLE ROLE FOR AMERICAN PEACEKEEPERS IN THE FUTURE WE HAVE SAID THAT THE AMERICAN FORCES COULD ONLY BE USED IF AT ALL IN THE IMPLEMENTATION OF A PEACE AGREEMENT HE SAID OUTRAGED BY LAST WEEKEND'S KILLING OF SIXTY EIGHT PEOPLE IN A SARAJEVO MARKET CONGRESSIONAL LEADERS STRONGLY ENDORSED THE IDEA OF NATO AIR STRIKES AT THE SAME TIME CONGRESS AND THE AMERICAN PUBLIC REMAIN ADAMANTLY OPPOSED TO THE IDEA OF SENDING U. S. PEACEKEEPERS TO BOSNIA BUT HAVING DECIDED ONCE AGAIN TO TAKE A MORE ACTIVE ROLE IN BOSNIA MR. CLINTON MAY FIND IT HARD TO BACK AWAY FROM HIS EARLIER COMMITMENT TO PROVIDE UP TO HALF OF THE PEACEKEEPERS NEEDED TO ENFORCE A PEACE AGREEMENT QUOTE THIS IS A QUAGMIRE QUOTE SAID INDIANA SENATOR DAN COATS A CONSERVATIVE REPUBLICAN MEMBER ON THE ARMED SERVICES COMMITTEE I THINK WE'RE FORGETTING THE LESSONS OF SOMALIA THERE ARE A LOT OF UNANSWERED QUESTIONS PEACE TALKS ARE SCHEDULED TO RESUME IN GENEVA TODAY AMONG BOSNIA'S SERBS MUSLIMS AND CROATS PRESIDENT CLINTON SAID THE U. S. WOULD NOW TRY TO HELP BROKER A PEACE SETTLEMENT HINTING AT THE POSSIBILITY OF SHUTTLE DIPLOMACY BY U. S. OFFICIALS AS A FIRST STEP HE SAID THE U. S. WOULD TRY TO DETERMINE THE BOSNIAN MUSLIMS' LEGITIMATE BEDROCK REQUIREMENTS AS WELL AS OFFERING THEM A CLEAR AND HONEST ASSESSMENT OF THE COSTS OF CONTINUED FIGHTING MR. CLINTON SAID THAT IT WAS NOT EXACTLY TRUE THAT THE U. S. WOULD NOW TRY TO PRESSURE THE MUSLIMS INTO ACCEPTING A PEACE SETTLEMENT U. S. DIPLOMATIC CHALLENGES WON'T END THERE THE ADMINISTRATION HAD TO DO SOME SERIOUS ARM TWISTING TO PERSUADE THE CANADIANS THE GREEKS AND TO A LESSER EXTENT THE BRITISH TO GO ALONG WITH THE PLAN CANADA AND BRITAIN HAVE LARGE PEACEKEEPING CONTINGENTS IN BOSNIA AND IF THEIR TROOPS ARE TARGETED FOR RETALIATION THEY MAY BLAME THE U. S. FOR FORCING THE PLAN ON THEM THE EUROPEANS ALREADY ARE BITTER AT THE U. S. REFUSAL TO SEND GROUND TROOPS TO HELP IN BOSNIA PRESIDENT CLINTON'S MOST IMMEDIATE PROBLEM WILL BE TRYING TO CALM RUSSIAN PRESIDENT BORIS YELTSIN SPURRED ON BY HIS NATIONALIST OPPONENTS MR. YELTSIN ACCORDING TO HIS AIDES HAS BEEN TELEPHONING WORLD LEADERS URGING NATO NOT TO ATTACK THE SERBS RUSSIA'S TRADITIONAL ALLIES MR. CLINTON SAID LAST EVENING HE WAS TRYING TO GET IN TOUCH WITH THE RUSSIAN LEADER AND HE EXPRESSED HOPE THAT ONCE MR. YELTSIN UNDERSTOOD THAT ANYONE WHO VIOLATES THE SAFE ZONE COULD BE PUNISHED HE WILL IF NOT AGREE WITH OUR ACTION AT LEAST UNDERSTAND IT MORE SEARS ROEBUCK AND COMPANY HIRED THOMAS R. SHARBAUGH A SENIOR BEER INDUSTRY MARKETING EXECUTIVE TO BECOME VICE PRESIDENT OF STRATEGIC MARKETING AND ADVERTISING AN IMPORTANT NEW POST AT THE RETAILER MR. SHARBAUGH FORTY NINE YEARS OLD HAD BEEN VICE PRESIDENT BRAND MANAGEMENT AT ANHEUSER BUSCH COMPANIES THE SAINT LOUIS BASED BREWER PROMPTLY NAMED AUGUST A. BUSCH FOUR TWENTY NINE THE SON OF THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER TO SUCCEED HIM MR. BUSCH HAS BEEN VICE PRESIDENT OF THE BUDWEISER BRANDS SINCE NINETEEN NINETY TWO REPORTING TO MR. SHARBAUGH AT CHICAGO BASED SEARS MR. SHARBAUGH IS EXPECTED TO HELP CHART A NEW ADVERTISING AND MARKETING COURSE AS WELL AS SPRUCE UP SOME BRANDS' IMAGES AND PERHAPS LAUNCH OTHERS THE TASK WILL INCLUDE HELPING SEARS ENHANCE THE IMAGE OF THE PRIVATE LABEL BRANDS IT SELLS AND CONTINUING TO ACQUIRE AND TO PROMOTE NATIONAL BRAND MERCHANDISE AMONG MR. SHARBAUGH'S EARLY ASSIGNMENTS IS LIKELY TO BE TO HELP SEARS LAUNCH ITS QUOTE STARS AND STRIPES QUOTE BRAND FOOTWEAR AND CASUAL CLOTHING WHICH WILL BE AVAILABLE THIS SPRING THE MOVE TO SEARS MARKS A REUNION FOR MR. SHARBAUGH AND HIS NEW BOSS JOHN H. COSTELLO SENIOR EXECUTIVE VICE PRESIDENT OF MARKETING THE TWO WORKED TOGETHER MORE THAN A DECADE AGO IN CINCINNATI AT PROCTER AND GAMBLE COMPANY THOUGH THE TWO MEN KNEW EACH OTHER SEARS SAID IT USED A SEARCH FIRM TO FIND MR. SHARBAUGH JUST AS IT HAD TO FIND SEVERAL OTHER EXECUTIVES TO FILL KEY POSTS IN ITS RETAIL OPERATIONS OVER THE PAST YEAR MR. COSTELLO HIRED ELEVEN MONTHS AGO BY SEARS IS ONE OF THOSE RELATIVELY RECENT ARRIVALS DESPITE THE RECENT SLIPPAGE OF ANHEUSER'S LINE OF BUDWEISER BEERS MR. SHARBAUGH WAS SAID TO BE HIGHLY REGARDED AT THE COMPANY WHICH HAD HOPED TO RETAIN HIM HIS DEPARTURE COMES AT A CRUCIAL TIME THE COMPANY REPORTED EARLIER THIS WEEK THAT IT HAD MANAGED TO HOLD ITS FORTY FOUR POINT THREE PERCENT SHARE OF THE U. S. BEER MARKET LAST YEAR BUT IT DID SO PARTLY BY DISCOUNTING BUDWEISER IN CERTAIN AREAS BY PROMOTING SALES OF LOWER PRICED BEERS AND BY INTRODUCING NEW PRODUCTS IN APPARENT RECOGNITION OF THOSE DIFFICULTIES ANHEUSER LAST MONTH SHUFFLED ITS BEER MARKETING OPERATION REASSIGNING THREE EXECUTIVES INCLUDING NEW DIRECTORS OF ITS BUDWEISER AND BUD LIGHT BRANDS MR. SHARBAUGH JOINED ANHEUSER IN NINETEEN EIGHTY ONE AS BUDWEISER GROUP PRODUCT MANAGER HE WAS NAMED VICE PRESIDENT OF BUDWEISER BRANDS IN NINETEEN NINETY ONE AND TO HIS MOST RECENT POST THE NEXT YEAR SO MR. BUSCH WHOSE BACKGROUND INCLUDES A BREWMASTER'S DEGREE FROM A GERMAN INSTITUTE FINDS HIMSELF IN A CHALLENGING NEW POSITION IT'S ON HIS SHOULDERS IF HE DOES MAKE IT WORK HE'LL BE A HERO SAID PAINEWEBBER BEVERAGE ANALYST EMANUEL GOLDMAN AS HEAD OF MARKETING AND ADVERTISING FOR THE BUDWEISER BRANDS MR. BUSCH HAS LED THE ROLLOUT OF ICE DRAFT BUDWEISER'S LATEST PRODUCT HE ALSO WAS RESPONSIBLE FOR THE DEBUT OF BUD DRY WHICH ANALYSTS SAY HASN'T CAUGHT ON WITH BEER DRINKERS AS THE COMPANY HAD HOPED MANATT PHELPS PHILLIPS AND KANTOR THE DEMOCRATIC POWERHOUSE LAW FIRM DIDN'T REALLY FEEL THE LOSS WHEN IT BECAME MANATT PHELPS AND PHILLIPS THAT'S BECAUSE OVER THE PAST YEAR WHILE U. S. TRADE REPRESENTATIVE MICKEY KANTOR HAS NEGOTIATED TRADE DEALS WORTH BILLIONS OF DOLLARS FOR U. S. INDUSTRIES HIS OLD LAW FIRM WHICH DIDN'T HAVE MUCH OF A TRADE PRACTICE BEFORE HAS BEEN BUSILY SIGNING UP NEW TRADE CLIENTS THAT COULD BE WORTH MILLIONS OF DOLLARS TO MANATT PHELPS CALL IT THE REVERSE REVOLVING DOOR PHENOMENON IN WASHINGTON WHEN LAWYER LOBBYISTS LEAVE HIGH PRESTIGE FEDERAL JOBS THEY OFTEN MAKE A BUNDLE BECAUSE OF THE CONNECTIONS THEY STILL HAVE INSIDE THE GOVERNMENT MANATT PHELPS TAKING A DIFFERENT ROUTE GAINED LUSTER AND NEW TRADE PROFITS IN THE WAKE OF MR. KANTOR'S DEPARTURE FOR A BIG GOVERNMENT JOB MANATT PHELPS IS HEADED BY CHARLES MANATT A FORMER DEMOCRATIC PARTY CHAIRMAN WHO HAS LONG EXPLOITED HIS POLITICAL CONTACTS TO BUILD UP THE FIRM'S OFFICES IN LOS ANGELES AND WASHINGTON BUT THE LAW FIRM WAS PRINCIPALLY KNOWN FOR CORPORATE AND ENTERTAINMENT WORK AND HAD JUST A FEW TRADE CLIENTS INCLUDING N. E. C. CORPORATION THE BIG JAPANESE ELECTRONICS COMPANY THAT CHANGED IN DECEMBER JUST AFTER MR. KANTOR HAD SEWN UP A VICTORY WITH PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT MANATT PHELPS MAILED OUT EMBOSSED ANNOUNCEMENTS TRUMPETING QUOTE THE ADDITION OF AN INTERNATIONAL TRADE AND CUSTOMS PRACTICE GROUP QUOTE WITH TWO NEW PARTNERS THREE NEW ASSOCIATES COUNSEL IN MONTERREY MEXICO AND A SENIOR TRADE CONSULTANT IN MEXICO CITY IT ALSO RAN THE ANNOUNCEMENT IN LEGAL TIMES A WASHINGTON TRADE PUBLICATION FOR LAWYERS AND LOBBYISTS GORDON BAVA MANAGING PARTNER AT THE FIRM'S LOS ANGELES HEADQUARTERS WORRIES THAT THE SUDDEN BURGEONING OF MANATT PHELPS'S TRADE WORK COULD BE MISCONSTRUED AS A CRUDE ATTEMPT TO CAPITALIZE ON OUR RELATIONSHIP WITH MICKEY IT ISN'T HE INSISTS FOR HIS PART MR. KANTOR HAS RECUSED HIMSELF FROM DEALING WITH MANATT PHELPS CLIENTS WE ADHERE TO THE LETTER AND DETAIL OF MY RECUSAL LETTER MR. KANTOR SAYS IN HIS OFFICE NEAR THE WHITE HOUSE HIS ARMS TIGHTLY FOLDED ACROSS HIM BUT THAT HASN'T STOPPED HIS FORMER PARTNERS FROM TRYING TO GET HIS ATTENTION THE RECUSAL DOESN'T BAR MR. KANTOR FROM MEETING WITH CLIENTS THE FIRM HAS SNAGGED SINCE HE LEFT BUT MR. KANTOR HAS GONE A STEP FURTHER AND SAID HE WILL MEET WITH THOSE CLIENTS ONLY IF THEY ARE PART OF INDUSTRY COALITIONS MANATT PHELPS USED THIS LOOPHOLE TO GET ONE OF ITS NEW TRADE CLIENTS DOLE FOOD COMPANY IN TO SEE THE TRADE REPRESENTATIVE AFTER MR. KANTOR SAID HE WOULDN'T MEET ALONE WITH DOLE TO DISCUSS BANANA ISSUES HE AGREED TO MEET WITH AN INDUSTRY GROUP THAT INCLUDED DOLE ON JUNE EIGHTH HE MET WITH OFFICIALS FROM DOLE CHIQUITA BRANDS INTERNATIONAL INCORPORATED THE AMERICAN FARM BUREAU FEDERATION AND A GROWERS' ASSOCIATION LAST MONTH JUNE WALTON A PARTNER AT MANATT PHELPS TRIED A DIFFERENT APPROACH SHE CALLED MR. KANTOR'S CHIEF OF STAFF THOMAS NIDES TO ASK ABOUT MR. KANTOR'S POLICY ABOUT MEETING WITH A NEW MANATT CLIENT SUCH AS VITRO S. A. A GIANT MEXICAN MANUFACTURER AND DISTRIBUTOR OF GLASS PRODUCTS U. S. RIVAL GUARDIAN INDUSTRIES CORPORATION HAD MET WITH MR. KANTOR LAST MAY ALBEIT ON TRADE ISSUES WITH JAPAN VITRO WHOSE THREE BILLION DOLLARS IN ANNUAL SALES RANKS IT AS ONE OF LATIN AMERICA'S BIGGEST COMPANIES IS LOCKED IN A BITTER TRADE DISPUTE WITH U. S. GLASS MAKERS SUCH AS GUARDIAN THE U. S. COMPANIES HAVE BEEN PUSHING MR. KANTOR'S OFFICE TO NEGOTIATE A FASTER REDUCTION OF TARIFFS MEXICO IMPOSES ON GLASS IMPORTS MR. NIDES TOLD MS. WALTON THAT SUCH A MEETING WOULDN'T BE POSSIBLE HE SENT HER A COPY OF MR. KANTOR'S RECUSAL STATEMENT AND NOTED IN A LETTER AS YOU CAN SEE FROM POINT NUMBER THREE IT SEEMS THAT MICKEY WILL BE UNABLE TO PERSONALLY MEET WITH THE FIRM IN POINT NUMBER THREE MR. KANTOR SAYS HE WON'T HAVE ANY PROFESSIONAL CONTACT WITH MEMBERS OR EMPLOYEES OF MY FORMER LAW FIRM MS. WALTON INSISTS SHE WASN'T ASKING FOR A MEETING BUT RATHER INQUIRING GENERALLY ABOUT MR. KANTOR'S POLICY MR. KANTOR SAYS THAT NOW THAT VITRO IS A MANATT PHELPS CLIENT HE WOULDN'T MEET AGAIN WITH GUARDIAN BASED IN NORTHVILLE MICHIGAN SOME MANATT LAWYERS PRIVATELY FRET THAT MR. KANTOR'S STRINGENT RECUSAL POLICY COULD IN FACT PUT THEIR CLIENTS AT A DISADVANTAGE IN TERMS OF ACCESS BUT THAT HASN'T STOPPED COMPANIES FROM HIRING THE FIRM IN EARLY NINETEEN NINETY THREE MANATT PHELPS REGISTERED WITH CONGRESS TO LOBBY FOR N. E. C. U. S. A. INCORPORATED A SUBSIDIARY OF N. E. C. IN JUNE IT FILED TO LOBBY FOR DOLE IN CONNECTION WITH THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE GENEVA BASED GROUP THAT MONITORS WORLD TRADE IN JULY IT FILED FOR SHARP MANUFACTURING COMPANY OF AMERICA THE U. S. SUBSIDIARY OF JAPANESE ELECTRONICS COMPANY SHARP CORPORATION OVER INTERNATIONAL TRADE LAW AND REGULATION AND THIS PAST OCTOBER COSTA RICA'S AMBASSADOR TO THE U. S. GONZALO FACIO SIGNED HIS COUNTRY ON AS A MANATT PHELPS CLIENT THE LAW FIRM WAS RETAINED TO REPRESENT COSTA RICA ON MATTERS INVOLVING DUTY FREE STATUS UNDER A PROGRAM CALLED THE GENERALIZED SYSTEM OF PREFERENCES FOR AN ESTIMATED FEE OF TEN THOUSAND DOLLARS TO TWENTY THOUSAND DOLLARS MANATT PHELPS SIGNED UP TO DO CONGRESSIONAL WORK FOR VITRO ON NAFTA IN OCTOBER IN NOVEMBER THE FIRM ADDED ROYAL WINE CORPORATION BASED IN NEW YORK TO ITS CLIENT LIST LOBBYING FOR THEM ON TRADE ISSUES AFFECTING THE WINE INDUSTRY ROYAL WINE IS A UNIT OF KEDEM ROYAL WINE COMPANY NONE OF THESE CLIENTS WOULD SPEAK ABOUT THEIR DECISION TO HIRE MANATT PHELPS AND BECAUSE THESE RETAINERS ARE TOO NEW TO SHOW UP IN GOVERNMENT FILINGS IT'S NOT CLEAR HOW MUCH THE FIRM IS BEING PAID TOM PERNICE A DOLE FOOD VICE PRESIDENT DIDN'T RETURN REPEATED CALLS AN OFFICIAL AT SHARP DIDN'T RESPOND TO QUESTIONS MR. FACIO AND A ROYAL WINE OFFICIAL DIDN'T RETURN PHONE CALLS THEN IN DECEMBER MANATT PHELPS ADDED A STABLE OF TRADE RELATED CLIENTS WHEN IRWIN ALTSCHULER A PARTNER AT ANOTHER WASHINGTON FIRM BROWNSTEIN ZELDMAN AND LORE MOVED HIS PRACTICE UPTOWN TO MANATT PHELPS'S SUITE WITH MR. ALTSCHULER CAME WORK FOR BIG MEXICAN CLIENTS INCLUDING ADDITIONAL WORK FOR VITRO AND VARIOUS OF ITS SUBSIDIARIES VITROCRISA VVP AMERICA INCORPORATED A MEMPHIS TENNESSEE FABRICATOR AND DISTRIBUTOR OF GLASS PRODUCTS AND ANCHOR GLASS CONTAINER CORPORATION ANOTHER U. S. GLASS MAKER MR. ALTSCHULER ALSO BROUGHT ALONG KIMBERLY CLARK DE MEXICO S. A. THE MEXICAN SUBSIDIARY OF THE U. S. CONSUMER PRODUCTS COMPANY KIMBERLY CLARK CORPORATION MANATT PHELPS HAD SOME TRADE WORK BEFORE N. E. C. ONE OF ITS LARGEST TRADE CLIENTS HAS PAID THE FIRM AT LEAST ONE POINT SEVEN EIGHT MILLION DOLLARS SINCE NINETEEN EIGHTY SEVEN THE FIRM REPRESENTED THE GOVERNMENT OF CYPRUS UNTIL NINETEEN NINETY TWO COLLECTING AT LEAST NINE HUNDRED NINETY THREE THOUSAND EIGHT HUNDRED FORTY FIVE DOLLARS PARTLY FOR TRADE ISSUES AND IT REPRESENTED L. A. GEAR INCORPORATED THE LOS ANGELES FOOTWEAR COMPANY ON LEGISLATION AFFECTING FOOTWEAR AND APPAREL IMPORTS THE FIRM'S TIES TO MR. KANTOR HAVE ALSO ATTRACTED CONTROVERSY BEFORE IN THE FALL OF NINETEEN NINETY TWO MR. MANATT GATHERED CURRENT AND POTENTIAL CLIENTS FOR A PRE ELECTION BRIEFING IN WHICH MR. KANTOR SPOKE ABOUT BILL CLINTON'S ELECTION CAMPAIGN AFTER NEWS REPORTS ABOUT THE BRIEFING WERE PUBLISHED MR. KANTOR LOST HIS BID TO BECOME THE CLINTON TRANSITION CHIEF MR. KANTOR FEELS THE REPORTS OF HIS ROLE IN THIS AFFAIR WERE MISLEADING AND EVEN NOW HE BRISTLES AT BEING DESCRIBED AS AN EX LOBBYIST MR. BAVA SAYS THE FIRM HAS BEEN INTERESTED IN EXPANDING ITS TRADE PRACTICE SINCE NINETEEN NINETY WE'RE NOT OUT TO SELL INFLUENCE HE INSISTS QUOTE WE'VE ALWAYS BEEN SCRUPULOUS QUOTE SOURCES LATEST FILINGS AT JUSTICE DEPARTMENT AND SENATE OFFICE OF PUBLIC RECORDS AND JOURNAL INTERVIEWS THE DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE TESTIFIED THAT CONSERVATIVE ALTERNATIVES TO PRESIDENT CLINTON'S HEALTH CARE PLAN ARE LIKELY TO BE LESS EFFECTIVE THAN THE PRESIDENT'S PROPOSAL IN CURBING HEALTH COSTS APPEARING BEFORE THE SENATE FINANCE COMMITTEE ROBERT REISCHAUER SHOWED BROAD SKEPTICISM ABOUT THE ABILITY OF PURE QUOTE MANAGED COMPETITION QUOTE PROVISIONS TO CURB HEALTH EXPENDITURES WITHOUT STRICT CAPS ON INSURANCE PREMIUMS THE COST OF THE PRESIDENT'S PLAN WOULD BE QUITE A BIT HIGHER THE DIRECTOR SAID HE ADDED THAT HIS OWN GUT FEELING WAS THAT ALTERNATIVE TAX CAP PROVISIONS IN RIVAL PLANS WOULD BE LESS EFFECTIVE THAN THE PRESIDENT'S PROPOSED PREMIUM CAPS IN CONTROLLING COSTS MR. REISCHAUER SPECIFICALLY ADDRESSED A BILL SPONSORED BY REPRESENTATIVE JIM COOPER D. TENNESSEE AND SENATOR JOHN BREAUX D. LOUISIANA IT WOULD CAP CORPORATE TAX DEDUCTIONS FOR WORKER HEALTH CARE PLANS IN AN EFFORT TO ENCOURAGE INDUSTRY TO CURB THE COST OF HEALTH BENEFITS THE RESULT WOULD BE A PRETTY HEFTY TAX ON EMPLOYERS THE DIRECTOR SAID BUT HE WASN'T OPTIMISTIC THAT THE BILL WOULD SLOW THE RISE IN HEALTH COSTS WHICH THE C. B. O. ESTIMATES NOW EQUAL FOURTEEN PERCENT OF THE NATIONAL GROSS DOMESTIC PRODUCT AFTER SENATOR DAVID DURENBERGER R. MINNESOTA A CO SPONSOR OF THE COOPER BREAUX BILL SPOKE OPTIMISTICALLY OF BRINGING COSTS DOWN TO TEN PERCENT OF G. D. P. FINANCE CHAIRMAN DANIEL PATRICK MOYNIHAN D. N. Y. JOKED THAT'S HIS PLAN THAT'S HIS PLAN BEFORE WE HAVE COSTED IT OUT CHIMED IN MR. REISCHAUER COMING JUST A DAY AFTER THE RELEASE OF C. B. O.'S ANALYSIS OF THE PRESIDENT'S PLAN MR. REISCHAUER'S REMARKS WERE AN IMPLICIT WARNING TO RIVALS THAT THEY TOO WILL FACE TOUGH SCRUTINY WHEN HIS STAFF EVALUATES THEIR PROPOSALS THE COOPER BREAUX SCHEME WOULD BE LESS AMBITIOUS THAN THE CLINTON PLAN BUT A BUDGET OFFICE STUDY OF AN EARLIER VERSION LAST YEAR CONCLUDED THAT THE LAWMAKERS' BILL WOULD ADD MARGINALLY TO RISING HEALTH COSTS IN CONTRAST THE BUDGET OFFICE SAYS THE PRESIDENT'S COST CONTROLS WOULD SLOW THE RISE IN HEALTH EXPENDITURES THE IMPROVEMENT WOULD BE RELATIVELY MODEST NATIONAL HEALTH EXPENDITURES UNDER THE CLINTON PLAN WOULD RISE TO MORE THAN TWO TRILLION DOLLARS OR NINETEEN PERCENT OF G. D. P. BY THE YEAR TWO THOUSAND FOUR INSTEAD OF TWENTY PERCENT IF NOTHING IS DONE BUT THAT TRANSLATES INTO A SAVINGS OF ONE HUNDRED FIFTY BILLION DOLLARS THAT YEAR MANY PROPONENTS OF MANAGED COMPETITION SAY THE C. B. O. IS TOO LOCKED INTO SCOREKEEPING AND FAILS TO GIVE CREDIT FOR THE SAVINGS POTENTIAL IN THE NEW APPROACH QUOTE WE'RE TALKING ABOUT CHANGING BEHAVIOR QUOTE SAID SENATOR DURENBERGER AFTER MR. REISCHAUER'S TESTIMONY HE'S NEVER MET A MEDICAL MARKET REPUBLICAN CONSERVATIVES HAVE TAKEN A CERTAIN PLEASURE IN THE RISE OF THE COOPER BREAUX ALTERNATIVE LARGELY BECAUSE OF THEIR DESIRE TO BLOODY THE CLINTON PLAN NOW THAT THE PRESIDENT IS PERCEIVED AS WEAKENED THE TONE HAS SHIFTED TO PRESSURE ON REPRESENTATIVE COOPER TO MOVE TO THE RIGHT A MEMO CIRCULATED YESTERDAY BY PROJECT FOR THE REPUBLICAN FUTURE A NEW REPUBLICAN THINK TANK IS ENTITLED DEFEATING THE COMING CLINTON COOPER COMPROMISE BOP AIR'S MOTTO COULD BE THE AIRLINE THAT'S NEITHER HERE NOR THERE BOPHUTHATSWANA'S FLAG CARRIER CAN'T FLY INTERNATIONAL ROUTES BECAUSE THE WORLD DOESN'T RECOGNIZE ITS HOME COUNTRY SAYING IT IS PART OF SOUTH AFRICA AND BOP AIR CAN'T FLY DOMESTIC ROUTES WITHIN SOUTH AFRICA BECAUSE IT IS CONSIDERED A FOREIGN AIRLINE THAT LEAVES IT FLYING ONLY BETWEEN SOUTH AFRICA AND BOPHUTHATSWANA QUOTE THIS MAKES OUR LIFE EXTREMELY DIFFICULT QUOTE COMPLAINS FINANCE MANAGER GLENN ORSMOND WE'RE SQUEEZED ON ALL SIDES BOP AIR'S PREDICAMENT GOES TO THE HEART OF A QUESTION THAT IS BEDEVILING SOUTH AFRICA'S HISTORIC TRANSITION TO BLACK RULE WHERE DOES BOPHUTHATSWANA FIT IN THE NASCENT MULTIRACIAL SOUTH AFRICA TO MANY THE DEMISE OF APARTHEID HAS STRIPPED THE NOMINALLY INDEPENDENT BLACK TRIBAL HOMELAND WHICH IS RECOGNIZED ONLY BY SOUTH AFRICA OF ITS RAISON D'ETRE IF IT EVER HAD ONE BOPHUTHATSWANA PRONOUNCED BOP POOH TATS WANA BUT COMMONLY CALLED BOP SHOULD BE BOPPED OFF THE WORLD MAP ITS DETRACTORS SAY THESE ARE THE VERY LAST DAYS OF BOPHUTHATSWANA SAYS THABA SEBOKA A LAW PROFESSOR AT THE UNIVERSITY OF BOPHUTHATSWANA IF NOTHING DRAMATIC HAPPENS ITS FATE IS SEALED IT'S BYE BYE BOP BUT DRAMA THERE IS BOPHUTHATSWANA'S AUTOCRATIC PRESIDENT LUCAS MANGOPE IS RESISTING REINCORPORATION DEFYING NOT ONLY SOUTH AFRICA'S LIKELY FUTURE PRESIDENT NELSON MANDELA BUT ALSO IN ALL LIKELIHOOD A MAJORITY OF HIS OWN TWO POINT THREE MILLION CITIZENS WE ARE NOT GOING TO WILLINGLY REVERT TO A SYSTEM WHERE ONCE AGAIN WE WILL BE OPPRESSED AND DEPRIVED BY A FAR AWAY GOVERNMENT THE ONLY DIFFERENCE THIS TIME AROUND BEING THE COLOR OF THE SKIN OF THE PEOPLE AT THE TOP MR. MANGOPE WHO HAS RULED THE HOMELAND SINCE ITS NINETEEN SEVENTY SEVEN INDEPENDENCE SAID RECENTLY WE WANT TO BE RULED BY OUR OWN PEOPLE FOR OUR OWN PEOPLE AS SOUTH AFRICA PREPARES FOR ITS FIRST DEMOCRATIC ELECTIONS APRIL TWENTY SIXTH TO APRIL TWENTY EIGHTH THIS CHALLENGE HIGHLIGHTS HOW THE DISMANTLING OF APARTHEID HAS UNLEASHED A COMPLEX POWER STRUGGLE BETWEEN ETHNIC GROUPS THAT WAS LONG OBSCURED BY THE OVERRIDING ISSUE OF RACE JOINING BOPHUTHATSWANA IN RESISTING SOUTH AFRICA'S NEW CONSTITUTION THE KING OF THE ZULU TRIBE IS REPORTED TO WANT TO SECEDE FROM SOUTH AFRICA AND WHITE SUPREMACISTS ARE THREATENING QUOTE TOTAL WAR QUOTE IF THEY DON'T GET AN AUTONOMOUS HOMELAND TALKS INVOLVING THE GOVERNMENT THE AFRICAN NATIONAL CONGRESS AND THE UNHAPPY PARTIES OF THE NEW SOUTH AFRICA BROKE DOWN TUESDAY AND ARE GIVEN LITTLE CHANCE OF RESUMING BEFORE PARTIES ARE TO REGISTER FOR THE BALLOT ON SATURDAY WHILE UNLIKELY TO DERAIL THE ELECTIONS THEMSELVES THE CLASH RAISES SERIOUS DOUBTS OVER HOW FREE THE BALLOT WILL BE AND THREATENS TO TURN WHAT BEGAN AS A NEGOTIATED REVOLUTION INTO A MESSY VIOLENT AFFAIR IT WOULD BE THE ULTIMATE IRONY OF APARTHEID THAT A HOMELAND OSTENSIBLY CREATED TO GIVE BLACKS THE RIGHTS THEY WERE DENIED IN SOUTH AFRICA COULD BE THE SPOILER IN THE COUNTRY'S TRANSITION TO BLACK RULE BUT BY INSISTING ON CONTINUED INDEPENDENCE OR AT THE VERY LEAST BROAD POWERS WITHIN A FEDERAL SOUTH AFRICA MR. MANGOPE IS ON A CONFRONTATION COURSE THAT COULD TURN WHAT WAS THE PLAYGROUND OF APARTHEID WHERE WHITES FLOCKED TO TASTE THE DOMESTICALLY FORBIDDEN FRUITS OF GAMBLING AND PORNOGRAPHY INTO A BATTLEGROUND OF THE NEW SOUTH AFRICA IF THE ONLY OPTION LEFT TO US IS TO ROLL IN THE TANKS THEN THAT IS WHAT WE WOULD DO MATTHEW PHOSA THE A. N. C.'S LEGAL ADVISER SAID RECENTLY BOPHUTHATSWANA IS ONE OF THE TEN BLACK TRIBAL HOMELANDS CREATED BY APARTHEID'S ARCHITECTS IN THE HEYDAY OF WHITE SUPREMACY IN A FORM OF ETHNIC CLEANSING SOUTH AFRICA SOUGHT TO CREATE A WHITE MAJORITY BY STRIPPING BLACKS OF THEIR SOUTH AFRICAN CITIZENSHIP RIGHTS AND BENEFITS AND MAKING THEM CITIZENS OF MAKE BELIEVE NATIONS CREATED FOR THEM THROUGH FORCED REMOVALS GERRYMANDERING AND THE REDRAWING OF BORDERS ABOUT EIGHTEEN MILLION OF SOUTH AFRICA'S TWENTY EIGHT MILLION BLACKS WERE PARKED ON THESE RESERVATIONS WHICH REPRESENTED BARELY FIFTEEN PERCENT OF SOUTH AFRICA'S TERRITORY NOW AS APARTHEID GOES MANY FEEL THE HOMELANDS SHOULD GO TOO THEIR CITIZENS RECENTLY REGAINED SOUTH AFRICAN CITIZENSHIP AND PLANS HAVE BEEN DRAWN UP TO SWALLOW THE HOMELANDS IN THE NINE REGIONS THAT WILL COMPRISE THE NEW SOUTH AFRICA THREE OF THE FOUR INDEPENDENT HOMELANDS VENDA CISKEI AND TRANSKEI AND FIVE OF THE SIX SELF GOVERNING ONES WITH THE EXCEPTION OF KWAZULU HAVE AGREED TO REINCORPORATION BOPHUTHATSWANA REFUSES TO GO ALONG SAYING THAT IT IS THE LEGITIMATE HOME OF THE TSWANA PEOPLE AND THAT ITS ECONOMIC GROWTH HAS UPLIFTED BLACKS MORE THAN SOUTH AFRICA WOULD TO PRESS ITS CLAIM THE LAND THAT BASED ITS CASE FOR INDEPENDENCE ON ITS HATRED OF APARTHEID AND HISTORICAL ASPIRATION FOR A TSWANA NATION HAS FORMED THE FREEDOM ALLIANCE WITH WHITE SUPREMACISTS FIGHTING FOR A HOMELAND OF THEIR OWN AND WITH MANGOSUTHU BUTHELEZI THE CHIEF OF THE ZULU TRIBE WHICH OCCUPIED PART OF THE TSWANAS' LAND IN THE ONE THOUSAND EIGHT HUNDRED TWENTIES IT'S ALMOST LIKE SLEEPING WITH YOUR ENEMY JUST BECAUSE YOU HAVE COMMON GOALS ADMITS ROSEMARY MANGOPE THE PRESIDENT'S DAUGHTER IN LAW AND ONE OF THE COUNTRY'S NEGOTIATORS IN RESISTING JOINING IN THE ELECTIONS BOPHUTHATSWANA APPEARS TO BE TAKING A PAGE OUT OF THE OLD SOUTH AFRICA'S BOOK EVEN AS THE A. N. C. FREELY CAMPAIGNS THROUGH MOST OF SOUTH AFRICA IT IS NOT ALLOWED INTO BOPHUTHATSWANA WHOSE CITIZENS WILL HAVE THE RIGHT TO VOTE IN THE COMING ELECTIONS POLITICAL MEETINGS AND VOTER EDUCATION PROGRAMS ARE ROUTINELY DISRUPTED AND CIVIL SERVANTS SUSPECTED OF A. N. C. MEMBERSHIP ARE FREQUENTLY DISMISSED THE ONLY DIFFERENCE BETWEEN BOPHUTHATSWANA TODAY AND SOUTH AFRICA IN THE NINETEEN EIGHTIES IS THE COLOR OF THE PRESIDENT CHARGES ELIJAH LOETE A LUTHERAN PASTOR IN BOPHUTHATSWANA POPO MOLEFE A MEMBER OF THE A. N. C.'S NATIONAL EXECUTIVE COMMITTEE DISCOVERED THIS WHEN HE TRIED TO CAMPAIGN THERE FIRST STOP ON THE PLANNED TOUR WAS LEEUFONTEIN A VILLAGE THAT WAS ARBITRARILY INCORPORATED INTO BOPHUTHATSWANA IN NINETEEN EIGHTY NINE AGAINST ITS PEOPLE'S WISHES ARRIVING AT LEEUFONTEIN IN THE MORNING MR. MOLEFE FINDS A FOUR HUNDRED STRONG CROWD GATHERED TO HEAR HIM BUT HE ALSO FINDS ABOUT THIRTY HEAVILY ARMED POLICEMEN WHO TELL HIM FIRMLY THAT HE SHOULD LEAVE IMMEDIATELY BECAUSE THE A. N. C. IS NOT REGISTERED AS A POLITICAL PARTY A MOVE THE A. N. C. REFUSES TO MAKE BECAUSE IT DOESN'T RECOGNIZE BOPHUTHATSWANA AT HIS REQUEST MR. MOLEFE IS TAKEN TO THE POLICE STATION IN NEARBY BRAKLAAGTE TO SEEK PERMISSION TO HOLD THE RALLY MR. MOLEFE STATES HIS CASE AS OF JANUARY FIRST THE PEOPLE LIVING IN THIS AREA ARE CONSIDERED FULL CITIZENS OF SOUTH AFRICA HE SAYS QUOTE WE CAME TO TALK ABOUT THE A. N. C. MANIFESTO ABOUT HOUSING EDUCATION AND HEALTH WE FOUND A POLICE CONTINGENT HEAVILY ARMED PEOPLE ON THE OTHER SIDE HAD NOTHING NOT EVEN STICKS WHY CAN'T PEOPLE MEET IN A COUNTRY THAT SAYS IT'S DEMOCRATIC AND HAS A BILL OF RIGHTS THIS IS A NEW SOUTH AFRICA YOU CAN'T USE OLD METHODS A KAFKAESQUE DIALOGUE ENSUES MR. MOLEFE IS TOLD HE HAS NO PERMISSION FOR THE RALLY HE SAYS HE HAS COME TO GET IT THAT HAS TO GO THROUGH INTERNAL AFFAIRS SO CAN HE CALL THE MAN RESPONSIBLE FOR INTERNAL AFFAIRS THE POLICE SAY THEY DON'T HAVE HIS NUMBER AFTER A FEW MORE MINUTES CAPTAIN CYRIL MOSUPYE SAYS THERE'S NO NEED TO PROLONG THIS THE ISSUE IS SHORT AND PRECISE YOU DON'T HAVE PERMISSION TO HOLD THIS MEETING YOU DON'T HAVE ANY OTHER OPTION BUT TO PACK YOUR THINGS AND GO MR. MOLEFE COMPLIES TO AVOID A BLOODBATH BUT AS HE CROSSES THE BORDER BETWEEN BOPHUTHATSWANA AND SOUTH AFRICA A MERE SIGNPOST A FINAL SCENE DRIVES HOME HOW OUT OF STEP BOPHUTHATSWANA IS WITH THE COUNTRY THAT SPAWNED IT THE MAN WHO WAS PREVENTED FROM BRINGING THE MESSAGE OF BLACK LIBERATION TO A BLACK RULED COUNTRY STOPS TO SHARE A BARBECUE WITH WHITE SOUTH AFRICAN SOLDIERS LONG BITTER FOES OF THE A. N. C. WHO MAN THE BORDER POST ON A MAP BOPHUTHATSWANA DOESN'T MAKE SENSE THE LAND CONSISTS OF SIX SEPARATE ENCLAVES WITHIN SOUTH AFRICA SO THAT IT'S OFTEN IMPOSSIBLE TO KNOW WHICH COUNTRY ONE IS IN AT NIGHT I WALK MY DOG IN BOPHUTHATSWANA AND GO TO BED IN SOUTH AFRICA SAYS ALWYN VILJOEN A GOVERNMENT SPOKESMAN THE COUNTRY'S APPEARANCE AS A FANTASYLAND IS ENHANCED BY THE EXTRAVAGANT LOST CITY COMPLEX IN SUN CITY WHICH FEATURES A LAGOON WITH ARTIFICIAL WAVES A GOLF COURSE WITH CROCODILES IN THE HAZARDS AND AN AREA THAT TREMBLES IN A SIMULATED EARTHQUAKE BUT BOPHUTHATSWANA CAN POINT TO REAL ACHIEVEMENTS THAT MAKE IT THE ONLY INDEPENDENT HOMELAND THAT ISN'T AN ECONOMIC WRECK ITS MINES PRODUCE NEARLY A THIRD OF THE WORLD'S PLATINUM ITS INDUSTRIAL ZONE ATTRACTS MULTINATIONALS LIKE GERMANY'S BAYERISCHE MOTOREN WERKE A. G. AND THE HOTELS AND CASINOS OF SOUTH AFRICAN LEISURE GIANT SUN INTERNATIONAL HOTELS LIMITED BRING IN TOURISM AND TAX REVENUE LOCALLY GENERATED REVENUE PROVIDES ABOUT EIGHTY PERCENT OF ITS BUDGET AND THE COUNTRY CLAIMS ITS GROWTH RATE OUTPACES MUCH OF AFRICA'S BOPHUTHATSWANA'S HIGH SCHOOL GRADUATION RATE IS NEARLY DOUBLE SOUTH AFRICA'S AND MMABATHO'S MANPOWER CENTER ATTRACTS STUDENTS FROM SOUTH AFRICA SEEKING TO ACQUIRE MARKETABLE TECHNICAL SKILLS THE COUNTRY HAS ACHIEVED A DEGREE OF RACIAL HARMONY AND SOCIAL PEACE THAT STRIKES VISITORS FROM SOUTH AFRICA AND THEN THERE'S MMABATHO ITSELF A SHOWCASE CAPITAL THAT BOASTS A VARIETY OF GLEAMING STRUCTURES INCLUDING A SIXTY THOUSAND SEAT STADIUM AND A RECORDING STUDIO CONSIDERED ONE OF THE BEST IN THE WORLD OUR PEOPLE CONTINUE TO ENJOY A STANDARD OF LIVING THEIR COUNTERPARTS IN SOUTH AFRICA CAN ONLY MARVEL AT MR. MANGOPE BOASTED RECENTLY IT IS TO PRESERVE THIS THAT HE WANTS BOP TO REMAIN INDEPENDENT OR RETAIN CONTROL OF THE REGION'S WEALTH BUT CRITICS SAY BOP'S TRANQUILITY IS ACHIEVED THROUGH CONSTANT HARASSMENT OF OPPONENTS AND LAWS THAT CAN TURN A MEETING BETWEEN TWO PEOPLE INTO AN QUOTE ILLEGAL GATHERING QUOTE IN THE LAST ELECTION MR. MANGOPE WAS UNOPPOSED HIS CLAIMS OF UPLIFTING THE TSWANA PEOPLE ARE CONTRADICTED BY THE FACT THAT THE BUCK USUALLY STOPS AT A WHITE DESK WHITES HOLD TOP MANAGERIAL POSTS IN VIRTUALLY ALL STATE COMPANIES AND THE HEAD OF THE ARMY IS SOUTH AFRICAN UNEMPLOYMENT OUTSIDE THE CIVIL SERVICE IS MASSIVE AND THOSE EMPLOYED OFTEN WORK IN SOUTH AFRICA AND THEN DOES MMABATHO REALLY NEED A STADIUM THAT CAN SEAT HALF ITS POPULATION OR AN INTERNATIONAL AIRPORT THAT CAN TAKE JETS BOPHUTHATSWANA'S CASE IS FULL OF HOLES ASKS FRANCINE DE CLERCQ A PROFESSOR AT THE UNIVERSITY OF THE WITWATERSRAND IN JOHANNESBURG WHO HAS WRITTEN ON BOPHUTHATSWANA INDEED THE TOWN OF BODIBE ONLY EIGHTEEN MILES OUTSIDE OF MMABATHO REVEALS A DIFFERENT BOPHUTHATSWANA BODIBE IS A COLLECTION OF BRICK AND ADOBE HOUSES WITHOUT RUNNING WATER ELECTRICITY OR PHONES A MAN NAMED JOSEPH WHO DECLINES TO GIVE HIS LAST NAME LIVES IN A TINY HOUSE WITH HIS WIFE AND FOUR CHILDREN HE SLEEPS ON THE ONE BED WITH TWO OF THE CHILDREN THE OTHER TWO SLEEP ON THE FLOOR WITH HIS WIFE HE HAS BEEN UNEMPLOYED SINCE NINETEEN NINETY TWO WHEN HE GAVE UP A CONSTRUCTION JOB IN SOUTH AFRICA BECAUSE THE PAY WAS TOO LOW TO JUSTIFY THE LONG COMMUTE LEAVING AT FIVE THIRTY A. M. JOSEPH LAUGHS WHEN ASKED WHETHER BOPHUTHATSWANA OFFERS HIM BETTER OPPORTUNITIES THAN SOUTH AFRICA WHAT OPPORTUNITIES HE ASKS LOOK FOR YOURSELF IT'S A MESS AT A NEIGHBORING HOUSE A GROUP OF TWENTY PEOPLE SIT DOWN TO DISCUSS THEIR LIVES OF THE TWENTY THREE HAVE JOBS ALL IN SOUTH AFRICA QUOTE WHEN MANGOPE SAYS WE'RE INDEPENDENT AND WELL OFF HE'S REFERRING TO HIMSELF AND HIS FRIENDS QUOTE SAYS ONE ALL THOSE INTERVIEWED SAY THEY WANTED TO REJOIN SOUTH AFRICA BUT COMPLAIN OF HARASSMENT AS THEIR VISITORS LEAVE POLICE CARS ARE SEEN ENTERING THE VILLAGE MANY BELIEVE MR. MANGOPE EVENTUALLY WILL HAVE TO GIVE IN BECAUSE THE CHANGE IN SOUTH AFRICA'S GOVERNMENT WILL DEPRIVE HIM OF HIS ONLY ALLY AN ALLY WHOSE ARMY RESTORED HIM TO POWER IN NINETEEN EIGHTY EIGHT WHEN HE WAS BRIEFLY TOPPLED IN A COUP ALREADY SOUTH AFRICA'S TRANSITIONAL EXECUTIVE COUNCIL A MULTIRACIAL ADVISORY BODY IS TIGHTENING THE SCREWS SUSPENDING A SIXTY THREE POINT FIVE MILLION DOLLAR LOAN BY THE SOUTH AFRICAN DEVELOPMENT BANK TO BOPHUTHATSWANA UNTIL FREE POLITICAL ACTIVITY IS ALLOWED IF THAT IS NOT ENOUGH A. N. C. AND GOVERNMENT OFFICIALS SAY SOUTH AFRICA COULD CUT OFF POWER AND WATER AND SUSPEND FINANCIAL TRANSFERS SOME OFFICIALS OF BOPHUTHATSWANA SPEAK OF RETALIATING BY WITHHOLDING SUPPLIES FROM THE MINES BUT FINANCE MINISTER MARTIN VAN DEN BERG A SOUTH AFRICAN CITIZEN ADMITS IF THEY'RE WILLING TO CUT ELECTRICITY TERMINATE THE CUSTOMS UNION AND TEN OTHER STEPS I CAN THINK OF THEY COULD BRING BOPHUTHATSWANA TO ITS KNEES ECONOMICALLY AND FINANCIALLY WITHIN SIX MONTHS AND EVEN IF MR. MANGOPE'S DEFIANCE IS SIMPLY A NEGOTIATING PLOY TO OBTAIN GREATER REGIONAL POWERS IN THE HOPES OF CONTINUING TO PLAY A ROLE WITHIN SOUTH AFRICA THAT MOVE COULD BACKFIRE TOO SOUTH AFRICAN POLLS SHOW THE A. N. C. COULD GET SEVENTY FOUR PERCENT OF THE VOTE IN THE REGION THAT WOULD SWALLOW BOPHUTHATSWANA JACOB BUTI MALEFYE A FORTY SIX YEAR OLD RESIDENT OF THE TOWN OF PHOKENG EXPLAINS WHY I WOKE UP ONE MORNING AND WITHOUT MOVING ANYWHERE I WAS TOLD I WAS IN BOPHUTHATSWANA AND HAD A NEW PRESIDENT HE SAYS I WANT TO WAKE UP ONE MORNING AND BE BACK IN MY OWN COUNTRY PRESIDENT CLINTON'S BUDGET PROPOSAL OFFERS A BIG BOOST TO LEGAL SERVICES FOR THE POOR BUT EVEN THE TWENTY FIVE PERCENT INCREASE SOUGHT BY THE PRESIDENT WOULDN'T RESTORE THE LEVEL OF SERVICES THE PROGRAM PROVIDED IN THE LATE NINETEEN SEVENTIES THE LEGAL SERVICES CORPORATION WHICH DISTRIBUTES FEDERAL MONEY TO LOCAL POVERTY LAW AGENCIES CAME UNDER HEAVY FIRE DURING THE NINETEEN EIGHTIES REPUBLICAN OFFICIALS CRITICIZED LEGAL AID LAWYERS FOR CROWDING THE DOCKETS WITH CLASS ACTION LAWSUITS AND FOR SUPPORTING LIBERAL CAUSES SUCH AS PUBLIC FUNDING FOR ABORTION AND GAY RIGHTS THE REAGAN ADMINISTRATION THOUGH UNSUCCESSFUL IN EFFORTS TO ELIMINATE THE L. S. C. ALTOGETHER SUBSTANTIALLY CUT ITS BUDGET SINCE NINETEEN EIGHTY TWO LOCAL LEGAL AID PROGRAMS HAVE BEEN ABLE TO REPLACE SOME OF THE LOST FEDERAL FUNDS THROUGH FOUNDATION GRANTS AND ASSISTANCE FROM THE PRIVATE BAR BUT MANY OF THOSE OUTSIDE FUNDS HAVE DRIED UP DURING THE RECENT RECESSION LEAVING MANY PROGRAMS STRAPPED ONCE AGAIN QUOTE IT HELPED CUSHION THE BLOW BUT IT DIDN'T MAKE UP FOR THE LOSS QUOTE SAYS LINDA PERLE A LAWYER FOR THE CENTER FOR LAW AND SOCIAL POLICY AN ADVOCACY GROUP FOR LEGAL AID SOCIETIES THE PRESIDENT AND HILLARY RODHAM CLINTON HAVE LONG BEEN ADVOCATES OF IMPROVING LEGAL SERVICES FOR THE POOR AND MRS. CLINTON HERSELF WAS CHAIRMAN OF THE L. S. C. DURING THE NINETEEN SEVENTIES LAST YEAR CONGRESS INCREASED THE L. S. C. BUDGET BY FORTY THREE MILLION DOLLARS AFTER PRESIDENT CLINTON REQUESTED SEVENTY FIVE MILLION DOLLARS IN NEW FUNDS BUT EVEN IF CONGRESS APPROVED THE NEW CLINTON PROPOSAL WHICH WOULD RAISE THE L. S. C.'S BUDGET TO FIVE HUNDRED MILLION DOLLARS THE PROGRAM WOULDN'T HAVE NEARLY THE SPENDING POWER IT EXERCISED MORE THAN TEN YEARS AGO IT WILL STILL ONLY ENABLE THE PROGRAM TO REACH A FRACTION OF THE PEOPLE IN NEED SAID DOUGLAS EAKELEY THE RECENTLY APPOINTED CHAIRMAN OF THE L. S. C.'S BOARD OF DIRECTORS UNDER THE PRESIDENT'S CURRENT PROPOSAL THE VAST MAJORITY OF THE L. S. C.'S FUNDING WOULD BE USED FOR LOCAL LEGAL AID PROGRAMS THAT TYPICALLY ASSIST PEOPLE WITH EVICTION DIVORCE OR CONSUMER FRAUD CASES THE PROPOSAL ALSO INCLUDES SIGNIFICANT FUNDING FOR LEGAL ASSISTANCE TO NATIVE AMERICANS AND MIGRANT FARM WORKERS AND FOR THE FIRST TIME WOULD DIRECTLY ALLOCATE MONEY TO AID PEOPLE IN MENTAL HEALTH INSTITUTIONS BUT DESPITE THE FUNDING INCREASE LEGAL SERVICES' LAWYERS WILL CONTINUE TO OPERATE UNDER RESTRICTIONS ENACTED BY CONGRESS IN THE NINETEEN EIGHTY TO REMOVE SUCH LAWYERS FROM ADVOCACY ROLES IN LEGISLATIVE MATTERS AND TO BAR THEM FROM HANDLING ABORTION CASES AND CERTAIN MATTERS INVOLVING ILLEGAL ALIENS THE LIMITS WILL CONTINUE UNLESS CONGRESS CHANGES THE LAW PROSECUTORS CAN'T ASK BROADLY FOR ALL COMPUTER FILES OF A COMPANY UNDER CRIMINAL INVESTIGATION BUT MUST NARROW THE REQUEST TO SPECIFIC CATEGORIES OF DOCUMENTS USING A KEY WORD SEARCH A FEDERAL COURT HAS RULED THE DECISION INVOLVED A GRAND JURY SUBPOENA IN A SECURITIES TRADING INVESTIGATION BY FEDERAL PROSECUTORS IN NEW YORK INVOLVING AN UNIDENTIFIED CORPORATION NO FURTHER INFORMATION INCLUDING THE NAMES OF THE LAWYERS ON EITHER SIDE WAS GIVEN IN ORDER TO MAINTAIN GRAND JURY SECRECY THE SUBPOENA REQUESTED THE CENTRAL PROCESSING UNIT INCLUDING THE HARD DISK DRIVE OF ANY COMPUTER SUPPLIED BY THE COMPANY FOR THE USE OF SPECIFIC OFFICERS AND EMPLOYEES AND ALL COMPUTER ACCESSIBLE DATA INCLUDING FLOPPY DISKETTES BUT U. S. DISTRICT JUDGE MICHAEL B. MUKASEY OF NEW YORK AGREED WITH THE CORPORATION THAT THE REQUEST WAS TOO BROAD AND WOULD LIKELY PRODUCE TOO MANY IRRELEVANT DOCUMENTS IN VIOLATION OF THE FEDERAL RULES OF CRIMINAL PROCEDURE THE GOVERNMENT ITSELF HAD ACKNOWLEDGED THAT A NARROWER KEY WORD SEARCH WOULD UNCOVER THE NEEDED DOCUMENTS THE JUDGE ADDED THAT IF THERE WAS REASON TO SUSPECT THAT CERTAIN DOCUMENTS WERE BEING WITHHELD IMPROPERLY A COURTAPPOINTED EXPERT COULD SEARCH THE HARD DRIVES AND FLOPPY DISKS IT IS EASIER IN THE COMPUTER AGE TO SEPARATE RELEVANT FROM IRRELEVANT DOCUMENTS HE WROTE MARGARET A. JACOBS CONTRIBUTED TO THIS ARTICLE A FEDERAL APPEALS COURT UPHELD THE STATE OF NEW YORK'S RIGHT TO ADOPT CALIFORNIA'S PROGRAM FOR CUTTING VEHICLE EMISSIONS INCLUDING A MANDATE FOR ZERO EMISSION VEHICLES OR ELECTRIC CARS THE RULING AMOUNTS TO ANOTHER DEFEAT FOR THE AUTO INDUSTRY WHICH HAS BEEN FIGHTING THE SPREAD TO THE NORTHEAST OF STRICTER CLEAN AIR REGULATIONS THAN THOSE SET BY THE FEDERAL GOVERNMENT SPECIFICALLY THE SECOND CIRCUIT U. S. COURT OF APPEALS RULED THAT THE NINETEEN NINETY AMENDMENTS TO THE FEDERAL CLEAN AIR ACT GIVE NEW YORK THE AUTHORITY TO ADOPT CALIFORNIA'S PROGRAM IN ITS ENTIRETY THE DECISION IS LIKELY TO ADD MOMENTUM TO A PETITION THAT TWELVE NORTHEAST STATES INCLUDING NEW YORK AND WASHINGTON D. C. HAVE FILED WITH THE ENVIRONMENTAL PROTECTION AGENCY CALLING FOR SIMILAR REGULATIONS TO BE APPLIED TO THE ENTIRE NORTHEAST THE RULING QUOTE REMOVES ANY LEGAL CLOUD OF UNCERTAINTY QUOTE FROM THE REGIONAL EFFORT SAID THOMAS JORLING NEW YORK'S COMMISSIONER OF ENVIRONMENTAL CONSERVATION I HOPE THAT THE AUTO INDUSTRY WILL NOW GET ON WITH THE JOB OF BUILDING CARS THAT ARE IN ACCORD WITH THIS PROGRAM THE RULING CRITICIZED THE AUTO MAKERS' RESISTANCE TO THE CALIFORNIA PROGRAM'S REQUIREMENT THAT THE INDUSTRY SELL ZERO EMISSION VEHICLES SUCH AS ELECTRIC CARS BY NINETEEN NINETY EIGHT THE INDUSTRY LED BY DETROIT'S BIG THREE HAS ARGUED THAT ELECTRIC VEHICLES WON'T MEET MOST CUSTOMER NEEDS BEFORE THE TURN OF THE CENTURY BECAUSE OF TECHNOLOGICAL SHORTCOMINGS THE COURT HOWEVER COMPARED THAT VIEW TO THE BELIEF HELD BY SOME PEOPLE A CENTURY AGO THAT ANYTHING THAT EVER COULD BE INVENTED HAD ALREADY BEEN INVENTED THE AUTO MAKERS DID SCORE A SMALL VICTORY NEW YORK WILL HAVE TO WAIT UNTIL THE AUTO INDUSTRY'S NINETEEN NINETY SIX MODEL YEAR BEFORE IT CAN IMPLEMENT THE FIRST PHASE OF THE STRINGENT CALIFORNIA STYLE PROGRAM THE RULING DIDN'T ADDRESS WHAT KIND OF FUELS WOULD HAVE TO BE USED UNDER THAT PROGRAM IN NEW YORK THE RULING IS A SETBACK FOR THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION THE BIG THREE LOBBY THAT CHALLENGED NEW YORK'S RIGHT TO ADOPT THE CALIFORNIA REGULATIONS IT HAD ATTEMPTED TO SELL AN ALTERNATIVE EMISSIONS REDUCTION PROGRAM FOR THE NORTHEAST BUT IT ULTIMATELY FAILED TO GARNER WIDESPREAD SUPPORT AN OFFICIALS FOR THE AAMA HAD NO IMMEDIATE COMMENT THE RULING ALSO MAY INFLUENCE A SEPARATE CASE IN MASSACHUSETTS WHERE THE AAMA IS FIGHTING TO KEEP THE CALIFORNIA EMISSIONS REDUCTION PROGRAM FROM GOING INTO EFFECT NEXT YEAR JAPAN'S NIPPON STEEL CORPORATION WILL SET UP AN ASSEMBLY FACILITY AND A SHIPPING TERMINAL FOR STEEL MARINE STRUCTURES IN INDONESIA'S BATAM ISLAND NEAR SINGAPORE TO MEET GROWING REGIONAL DEMAND FOR OFFSHORE RESOURCE DEVELOPMENT EQUIPMENT THE PROJECT WILL BE PUT INTO OPERATION BY THE END OF NINETEEN NINETY SIX A COMPANY SPOKESMAN SAID HE DIDN'T DISCLOSE THE SIZE OF THE INVESTMENT THEY ARE CULTURAL ODDITIES BARNEYLESS TODDLERS TEENS WITHOUT M. T. V. GROWN MEN WHO SPURN THE SUPER BOWL BUT FOR THE RELATIVE HANDFUL OF AMERICAN FAMILIES WHO UNPLUG FOR GOOD LIFE AFTER TELEVISION GOES ON QUITE HAPPILY AT THAT DEBORAH FELDMAN OF HIGHLAND MARYLAND MADE THE DECISION TEN YEARS AGO WHEN SHE WAS NURSING HER INFANT DAUGHTER IN FRONT OF THE T. V. SHE SAYS RACHEL WOULD QUOTE WHIP HER HEAD AWAY FROM ME AND STARE FIXATED AT THE SCREEN WE FIGURED IF SHE WAS DOING IT AT THAT AGE WHAT WOULD SHE DO WHEN SHE GOT OLDER FOR RICHARD MENDEZ A FATHER OF SIX IN OAKHURST CALIFORNIA THE FLASH POINT CAME ON A SATURDAY THREE YEARS AGO I TURNED ON THE SET IN THE EARLY MORNING AND THAT NIGHT REALIZED I'D LOST MAYBE FOURTEEN HOURS WATCHING SPORTS IT HIT ME BETWEEN THE EYES I WAS THE PROBLEM NOT MY KIDS HELEN FRENCH OF NEW PRESTON CONNECTICUT SIMPLY GREW WEARY OF NEGOTIATING WITH HER CHILDREN WE MADE DEALS AND SCHEDULES THE RULES KEPT CHANGING AND BENDING IT BECAME SUCH A POWER STRUGGLE THAT IT WAS EASIER NOT TO HAVE IT IN MANY HOUSEHOLDS THE RISING PUBLIC CLAMOR OVER TELEVISED SEX AND VIOLENCE HAS ONLY INTENSIFIED LONGSTANDING LIVING ROOM SKIRMISHES OVER HOW MUCH AND WHAT CHILDREN WATCH STILL FEW PARENTS HAVE TAKEN TO HEART THE BROADCASTING INDUSTRY'S STANDARD ANSWER TO ITS CRITICS IF YOU DON'T LIKE WHAT'S ON TELEVISION TURN IT OFF THOSE WITH THE SPINE TO BAN OR STRINGENTLY RESTRICT T. V. ATTEST TO THE TRIBULATIONS OF WHAT SOME CALL QUOTE DETOXIFICATION QUOTE MOST NOTABLY TESTY CHILDREN AT LOOSE ENDS BUT EVEN THEIR CHILDREN SAY THAT BEING MEDIA IMPOVERISHED HAS ITS COMPENSATIONS FOR ABOUT A MONTH AFTER THE SET WENT DARK AT HER HOUSE CHARIS MENDEZ NOW SEVENTEEN YEARS OLD RECALLS IT WAS TERRIBLE I HATED IT SHE AND HER SIBLINGS SCHEMED TO GET THE CABLE COMPANY TO RECONNECT THEM TO NO AVAIL THEN SHE SAYS AFTER A WHILE WE ALL KIND OF GOT USED TO IT CHARIS WHO HAD CLOCKED SIX HOURS A DAY IN FRONT OF T. V. THUMBING THROUGH MAGAZINES I JUST LOOKED AT THEM I NEVER READ THEM DISCOVERED BOOKS PLAYING THE SAXOPHONE AND LISTENING TO JAZZ ESPECIALLY BILLIE HOLIDAY WHOSE BIOGRAPHY SHE TRACKED DOWN AT THE LIBRARY THERE WAS MORE TIME FOR CONVERSATION AT HOME BEFORE IT WAS LIKE MOSTLY WE'D SEE DAD BEFORE HE LEFT FOR WORK WHEN HE CAME HOME HE'D WATCH T. V. WITH US AND THEN IT WAS LIKE GOODNIGHT DAD NOW WE TALK ALL THE TIME WE'RE REALLY CLOSE AND CHARIS WHO TWO YEARS AGO WAS FAILING FOUR OF HER SEVEN CLASSES TODAY HAS A B. AVERAGE QUOTE WHEN I HAVE A FAMILY I'M NOT GOING TO HAVE T. V. QUOTE SHE SAYS AFTER HER FLEETING FIXATION WITH T. V. AS A BABY TEN YEAR OLD RACHEL FELDMAN IS FLOURISHING WITHOUT IT IT IS SOMETIMES DIFFICULT SHE ADMITS WHEN HER FRIENDS NATTER ON ABOUT T. V. SHOWS SHE HAS NEVER SEEN BUT SHE SAYS I HAVE BETTER THINGS TO DO THAN SIT AROUND WATCHING A BOX SHE READS A BOOK A DAY PLAYS OUTSIDE IS ACTIVE IN DRAMA AND CHORUS AT SCHOOL AND BRINGS HOME STRAIGHT A'S WHEN RACHEL AND HER FIVE YEAR OLD SISTER LEAH VISIT THEIR GRANDPARENTS TWO WEEKS EVERY YEAR THEY GET THEIR ANNUAL T. V. FIX THOUGH RACHEL SAYS IT MAKES MY HEAD HURT AND GETS BORING RESEARCH COMPARING T. V. FREE KIDS WITH HEAVY VIEWERS IS SCARCE PARTLY BECAUSE EXPOSURE TO TELEVISION IS SO PERVASIVE ONE STUDY OF A REMOTE TOWN IN THE CANADIAN ROCKIES BEFORE AND AFTER T. V. ARRIVED IN THE MID NINETEEN SEVENTIES SHOWED A DECLINE IN CHILDREN'S STANDARDIZED TEST SCORES WITHIN TWO YEARS BUT A U. S. EDUCATION DEPARTMENT FUNDED REVIEW OF SCIENTIFIC LITERATURE A FEW YEARS AGO CONCLUDED THAT T. V. HABITS HAD LITTLE EFFECT ON CHILDREN'S COGNITIVE DEVELOPMENT OR SCHOOL PERFORMANCE THIS MEDIUM IS HERE TO STAY SAYS JOHN C. WRIGHT CO DIRECTOR OF THE UNIVERSITY OF KANSAS' CENTER FOR RESEARCH ON THE INFLUENCES OF TELEVISION ON CHILDREN KIDS ARE GOING TO PROCESS INFORMATION MORE AND MORE FROM SCREENS AND LESS FROM PAPER TO THINK YOU ARE DOING YOUR CHILD A FAVOR BY MAKING HIM CHERISH THE OLD THINGS TO THE EXCLUSION OF THINGS HE'LL REALLY NEED IS INCOMPLETE PARENTING FOR BETTER OR WORSE KIDS RAISED WITHOUT TELEVISION DO SPEND THEIR TIME DIFFERENTLY THAN THEIR MEDIA SATURATED PEERS BECKIE MCNEILL HELEN FRENCH'S FOURTEEN YEAR OLD DAUGHTER ADMITS THAT SHE ONCE HAD FRIENDS GIVE HER TELEPHONE PLAY BY PLAYS OF QUOTE BEVERLY HILLS NINETY THOUSAND TWO HUNDRED TEN QUOTE BUT SHE HAS NOTICED THAT WHEN SHE VISITS FRIENDS' HOUSES THEY FIRST ASK WHAT DO YOU WANT TO WATCH SHE REPLIES POINTEDLY YOU MEAN WHAT DO I WANT TO DO HER FRIENDS JOIN HER HIKING OR SKATING SHE SAYS BUT THEY ALWAYS THINK FIRST OF T. V. SUCH OBSERVATIONS COME AS NO SURPRISE TO CHICAGO PUBLIC RELATIONS CONSULTANT SUZANNE SHELTON FOLEY WHOSE SEVEN YEAR OLD TWINS ARE ENROLLED AT THE PRIVATE CHICAGO WALDORF SCHOOL WHICH DISCOURAGES TELEVISION VIEWING WHEN THEY BEGAN PRESCHOOL ELIZABETH AND BUCKLIN DIDN'T WATCH T. V. ON SCHOOL DAYS MS. SHELTON FOLEY SAYS THAT SHE AND HER VIDEO PRODUCER HUSBAND NOTICED THAT ON DAYS WHEN T. V. WAS PERMITTED THE TWINS WERE MORE QUARRELSOME AND LESS INTERESTED IN CREATIVE PLAY I REALLY DIDN'T WANT TO BELIEVE IT MS. SHELTON FOLEY SAYS IT'S SO MUCH EASIER JUST TO TURN ON THE T. V. WHEN YOU NEED TO MAKE DINNER BUT THE BEHAVIOR CHANGES WERE SO MARKED SHE SAYS THAT THE RULE SOON BECAME NO T. V. AFTER INITIAL PROTESTS THE TWINS GAVE UP ASKING TO WATCH T. V. SAYS THEIR MOTHER QUOTE IT DIDN'T TAKE LONG WE JUST GAVE THEM A ZILLION OTHER THINGS TO DO AT THE WALDORF SCHOOL WHERE MOST CHILDREN ARE T. V. FREE TEACHERS SAY HEAVY VIEWERS STAND OUT IF YOU SEE KINDERGARTENERS PLAYING SUPERHEROES AND PRETENDING TO KILL AND SLICE AND HURT IT'S A DEAD GIVEAWAY SAYS JOAN INGLE A THERAPIST AT THE SCHOOL NOT ONLY DO T. V. AND VIDEO GAMES ENCOURAGE AGGRESSIVE BEHAVIOR SHE ARGUES THEY TEND TO IMPAIR A CHILD'S MEMORY ATTENTION SPAN AND IMAGINATION ONE WHO HAS WITNESSED LOTS OF T. V. CONDITIONED KIDS IS PROFESSIONAL STORYTELLER ODDS BODKIN WHO PERFORMS BEFORE SOME TEN THOUSAND PEOPLE A YEAR MOST OF THEM CHILDREN LIKE CLOCKWORK AFTER SEVEN MINUTES A RIPPLE GOES THROUGH THE CROWD HE SAYS THEIR INNER CLOCKS EXPECT A COMMERCIAL THAT'S HIS CUE TO STEP UP THE STORY'S PACE WITH MUSIC OR ONE OF HIS ONE HUNDRED CHARACTER VOICES HE SAYS MR. BODKIN WHO LIVES IN BRADFORD N. H. RESTRICTS HIS THREE YOUNG SONS' T. V. WATCHING TO WEEKENDS PARENTS SAY IT BECOMES HARDER TO KEEP T. V. AT BAY ONCE CHILDREN REACH EARLY ADOLESCENCE JAY VOSS OF CHICAGO SAYS HE HAS BEGUN TO EASE UP ON HIS THIRTEEN YEAR OLD SON HARTLEY'S T. V. RESTRICTIONS TEENAGERS NEED EXPOSURE TO MASS CULTURE SO THEY CAN FORM THEIR OWN CONCLUSIONS HE SAYS HARTLEY AND HIS FRIENDS WATCH QUOTE SATURDAY NIGHT LIVE QUOTE AND MIMIC THE JOKES QUOTE AND IF HE DOESN'T WATCH QUOTE MR. VOSS SAYS QUOTE HE'S THE ODD GUY OUT QUOTE BUT HARTLEY'S SISTERS AGED TEN AND FIVE AREN'T INTERESTED IN T. V. AND DON'T WATCH NELL SPEKMAN OF NEW YORK CITY HAS REACHED THE AGE OF SIXTEEN WITHOUT SUCCUMBING TO THE T. V. HABIT WHEN SHE WAS A BABY HER FAMILY'S SET BURNED OUT AND WAS NEVER REPLACED THOUGH FRIENDS WONDER HOW SHE FILLS HER SPARE TIME NELL SAYS SHE IS RARELY BORED INSTEAD OF WATCHING SITCOMS SHE SAYS HER FAMILY OFTEN READS ALOUD WE WENT THROUGH THE TOLKIEN TRILOGY AND SHERLOCK HOLMES SHE SAYS IT BROUGHT OUR FAMILY TOGETHER STILL OPTING OUT OF THE CULTURAL MAINSTREAM REQUIRES A THICK SKIN AFTER SUZANNE SHELTON FOLEY JOINED A HEALTH CLUB SHE ASKED THAT THE T. V. BE TURNED OFF WHEN SHE LEFT HER CHILDREN AT THE CLUB'S NURSERY IT WAS SURE NO PROBLEM AND AS SOON AS MY CHECK CLEARED I WAS A LUNATIC SHE RECALLS SHE STOPPED TAKING HER CHILDREN THERE WHEN ANN POTTS PROPOSED A T. V. FREE WEEK LAST YEAR AT POINTERS RUN ELEMENTARY SCHOOL IN CLARKSVILLE MARYLAND SHE SAYS IT WAS NOT AN EASY IDEA TO SELL TO PARENT TEACHER ASSOCIATION BOARD MEMBERS WHO INITIALLY FRETTED ABOUT MISSING FAVORITE SHOWS BUT MORE THAN SEVENTY PERCENT OF THE SCHOOL'S FOUR HUNDRED STUDENTS COMPLIED WITH THE BLACKOUT AND SINCE THEN MS. POTTS SAYS MANY PARENTS REPORT THAT VIEWING IN THEIR HOMES IS DOWN EXPERIMENTS LIKE THE ONE AT POINTERS RUN ARE SPRINGING UP WITH INCREASING FREQUENCY AFTERWARD PARENTS AND TEACHERS CONSISTENTLY REPORT BETTER HOMEWORK IMPROVED FAMILY RELATIONS AND OTHER POSITIVE RESULTS ACCORDING TO MARIE WINN AUTHOR OF THE PLUG IN DRUG A BOOK ABOUT T. V. ADDICTION IN CHILDREN QUOTE FAMILIES ARE OFTEN EUPHORIC ABOUT HOW WONDERFUL IT WAS QUOTE SHE SAYS BUT THEN THEY SHEEPISHLY TURN THE T. V. BACK ON AND LOOK BACK ON THEIR TIME WITHOUT IT AS AN OASIS IN THE DESERT U. S. LONG DISTANCE CORPORATION'S CHIEF FINANCIAL OFFICER RESIGNED AMID A SECURITIES AND EXCHANGE COMMISSION INQUIRY INTO THE COMPANY'S ACCOUNTING STEPHEN DEATON FORTY SEVEN YEARS OLD LEFT HIS POSTS AS C. F. O. AND SENIOR VICE PRESIDENT AFTER ONLY SEVEN WEEKS ON THE JOB PARRIS H. HOLMES JUNIOR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE TELECOMMUNICATIONS COMPANY SAID THE RESIGNATION QUOTE IS TOTALLY UNRELATED QUOTE TO THE S. E. C.'S INFORMAL INQUIRY IN AN INTERVIEW MR. DEATON DECLINED TO SAY WHETHER HIS RESIGNATION WAS LINKED TO THE S. E. C. PROBE MR. DEATON PREVIOUSLY CHIEF FINANCIAL OFFICER FOR A DALLAS VENTURE CAPITAL FIRM HAD BEEN NAMED TO THE POSTS DECEMBER TWENTIETH FIVE DAYS AFTER THE PROBE WAS DISCLOSED HIS PREDECESSOR MARK BUCKNER HAD RESIGNED LAST AUGUST THE COMPANY WHICH SAYS IT IS COOPERATING IN THE INVESTIGATION MAINTAINS THAT ITS FINANCIAL STATEMENTS ARE FAIRLY STATED MR. DEATON'S DEPARTURE FOLLOWS BY EIGHT DAYS THAT OF CHARLES P. JOHNSON AN EXECUTIVE VICE PRESIDENT IN CHARGE OF THE COMPANY'S DIRECT DIALING AND OPERATOR ASSISTED OPERATIONS WHO RESIGNED FEBRUARY TWO WEEKS AGO U. S. LONG DISTANCE SAID IT EXPECTS TO REPORT A LOSS FOR ITS FIRST QUARTER IN PART BECAUSE OF ACCOUNTING AND LEGAL COSTS RELATED TO THE INQUIRY WHICH INVOLVES HOW THE COMPANY ACCOUNTS FOR CERTAIN RECEIVABLES AT THAT TIME THE COMPANY ALSO CANCELED A PLANNED OFFERING OF ONE POINT SIX MILLION SHARES THOUGH PREVIOUSLY IT HAD CITED THE S. E. C. INQUIRY IN DELAYING THE OFFERING U. S. LONG DISTANCE SAID THAT ITS DECISION TO CANCEL THE OFFERING WASN'T CONNECTED TO THE INQUIRY U. S. LONG DISTANCE SAID IT IS SEARCHING FOR A SUCCESSOR TO MR. DEATON GREGORY PUSEY WAS NAMED A DIRECTOR OF THIS MARKETER OF COMPUTER EQUIPMENT FILLING A VACANCY MR. PUSEY FORTY ONE YEARS OLD IS PRESIDENT OF CAMBRIDGE HOLDINGS LIMITED A REAL ESTATE CONCERN GERARD F. CORBETT FORTY THREE YEARS OLD WAS NAMED VICE PRESIDENT OF COMMUNICATIONS FOR THIS MAKER OF DEFENSE ELECTRONICS THE POSITION HAD BEEN VACANT SINCE LAST YEAR MR. CORBETT HAD SERVED PREVIOUSLY AS DIRECTOR OF CORPORATE COMMUNCIATIONS FOR METALS PRODUCER ASARCO INCORPORATED THIS ELECTRONIC DISTRIBUTION CONCERN CREATED AN OFFICE OF THE PRESIDENT TO BE FILLED BY NANCY ANGELI THIRTY FIVE YEARS OLD CHIEF FINANCIAL OFFICER GLEN BALZER FORTY NINE PRESIDENT OF THE COMPONENTS DIVISION AND SCOTT MUNRO THIRTY SEVEN PRESIDENT OF THE SYSTEMS DIVISION MARSHALL G. COX PRESIDENT AND CHIEF EXECUTIVE OFFICER RESIGNED BUT HE REMAINS CHAIRMAN AIRBUS INDUSTRIE SECURED AN ORDER FOR SIX OF ITS TOP OF THE LINE A. THREE FORTY JETLINERS ALTHOUGH NEITHER THE BUYER AIR CANADA NOR THE MANUFACTURER DISCLOSED THE VALUE OF THE DEAL THE A. THREE FORTY LISTS FOR ONE HUNDRED TWENTY ONE POINT FIVE MILLION DOLLARS WITHOUT SPARE PARTS OR TRAINING THAT WOULD MEAN A TOTAL OF ABOUT SEVEN HUNDRED TWENTY NINE MILLION DOLLARS AIR CANADA WON'T BE PUTTING UP THE MONEY ITSELF INSTEAD THE FINANCING IS BEING ARRANGED BY AN UNDISCLOSED THIRD PARTY WITH AIR CANADA TAKING OVER THE PLANES ON A LONG TERM LEASE AN AIRLINE SPOKESMAN SAID THE GROUP ALSO HAS OPTIONS FOR AN ADDITIONAL THREE A. THREE FORTIES AIRBUS AND AIR CANADA SIGNED A MEMORANDUM OF UNDERSTANDING ON THE SALE IN DECEMBER IN EXPLAINING ITS CHOICE FOR THE EUROPEAN BUILT JETLINERS AIR CANADA CITED ITS THREE YEAR EXPERIENCE FLYING THE A. THREE TWENTY BOTH THE FOUR ENGINE TWO HUNDRED SIXTY SEAT A. THREE FORTY AND THE SMALLER A. THREE TWENTY ARE SIMILAR FOR COCKPIT CREWS TO FLY AIR CANADA EXPECTS TO USE THE NEW JETLINERS ON ITS TRANS ATLANTIC ROUTES WHERE IT FLIES AGING BOEING COMPANY SEVEN FORTY SEVEN JUMBO JETS ANALYSTS SAID THE DEAL REFLECTS THE TREND AMONG AIRLINES TO TURN AWAY FROM THE FOUR HUNDRED SEAT SEVEN FORTY SEVENS ON LONG DISTANCE ROUTES IN FAVOR OF SMALLER AIRCRAFT THAT NEED FEWER PASSENGERS TO TURN A PROFIT QUOTE IN THE LAST TWELVE MONTHS THERE HAVE BEEN VERY FEW NEW ORDERS FOR THE BOEING SEVEN FORTY SEVEN BUT THERE HAVE BEEN A STEADY FLOW OF ORDERS FOR THE A. THREE FORTY QUOTE SAID KEITH HODGKINSON OF LEHMAN BROTHERS INTERNATIONAL IN LONDON HE NOTED THAT THE BOEING SEVEN HUNDRED SEVENTY SEVEN AND SEVEN SIXTY SEVEN WHICH COMPETE WITH THE AIRBUS A. THREE FORTY AND ITS SISTER PLANE THE A. THREE THIRTY ARE ALSO SELLING WELL IN A SHARP BLOW TO LENDERS A FEDERAL APPEALS COURT HAS INVALIDATED ENVIRONMENTAL PROTECTION AGENCY RULES THAT PROTECTED BANKS AND SAVINGS INSTITUTIONS FROM HAVING TO PAY FOR CLEANUPS AT HAZARDOUS WASTE SITES THE LAWSUIT INVOLVED A CHALLENGE BY CHEMICAL MANUFACTURERS AND THE STATE OF MICHIGAN TO E. P. A. RULES ENACTED IN NINETEEN NINETY TWO THAT PURPORTED TO CLARIFY AN EXEMPTION FOR BANKS AND OTHER LENDERS WITHIN THE FEDERAL SUPERFUND LAW AS WRITTEN THE LAW SHIELDS LENDERS WHO HAVE SECURED INTERESTS IN HAZARDOUS WASTE SITES BUT WHO AREN'T INVOLVED IN ACTIVELY MANAGING THE SITES THESE LENDERS TYPICALLY HOLD THE PROPERTY AS COLLATERAL OR HAVE BECOME OWNERS AS A RESULT OF HAVING FORECLOSED ON MORTGAGES BEGINNING IN NINETEEN NINETY HOWEVER A NUMBER OF FEDERAL COURTS BEGAN EXPANDING THE GROUNDS UPON WHICH LENDERS COULD BE SUED UNDER THE LAW THAT PROMPTED THE E. P. A. UNDER PRESSURE FROM THE BANKING INDUSTRY TO ISSUE ITS RULES EMPHASIZING THAT LENDERS WERE INDEED BROADLY PROTECTED BUT THE U. S. COURT OF APPEALS IN WASHINGTON LAST FRIDAY SAID THE AGENCY HAD GONE TOO FAR QUOTE UNDER THESE CIRCUMSTANCES IT CANNOT BE ARGUED THAT CONGRESS INTENDED E. P. A. ONE OF MANY POTENTIAL PLAINTIFFS TO HAVE AUTHORITY TO BY REGULATION DEFINE LIABILITY FOR A CLASS OF POTENTIAL DEFENDANTS QUOTE THE COURT HELD IT IS A HUGE SETBACK FOR LENDERS IT BRINGS US BACK TO THE DAY OF COMPLETE UNCERTAINTY IN TERMS OF WHEN ACTIONS COULD CREATE SUPERFUND LIABILITY SAID PETER S. CLARK A PARTNER WITH THE PHILADELPHIA FIRM OF DUANE MORRIS AND HECKSCHER WHICH REPRESENTS LENDERS IN SUCH SITUATIONS AN E. P. A. SPOKESWOMAN SAID THE AGENCY WAS REVIEWING THE CASE AND DECLINED TO COMMENT BANKS SAY THEY ARE BEING UNFAIRLY TARGETED AS DEFENDANTS IN SUCH CASES BECAUSE THEY HAVE DEEP POCKETS AND THAT IN MOST CASES THEY HAVE HAD LITTLE OR NO INVOLVEMENT IN THE CONDITIONS THAT CREATED POLLUTION AT THE SAME TIME STATES AND OTHERS CHARGED WITH CLEANING UP SUCH SITES INCLUDING POTENTIAL CO DEFENDANTS SAY LENDERS BEAR SOME RESPONSIBILITY BECAUSE THEY BENEFIT FROM HAVING A FINANCIAL INTEREST IN THE PROPERTY AND ARE OFTEN IN A POSITION TO CONTROL THE OVERALL AFFAIRS OF THEIR CLIENTS THIS RULE WOULD HAVE ENCOURAGED BANKS TO FORECLOSE ON CONTAMINATED SITES OR FACILITIES AND THEN OPERATE THEM WITH LITTLE OR NO FEAR THAT THEY WOULD BE HELD LIABLE FOR THE CONTAMINATION OR DANGERS IT POSED FRANK KELLEY MICHIGAN'S ATTORNEY GENERAL SAID IN A PREPARED STATEMENT MOREOVER BANKS HAVE BEEN SUED FAIRLY SELECTIVELY UNDER THE LAW ACCORDING TO THEODORE L. GARRETT A LAWYER AT THE WASHINGTON FIRM OF COVINGTON AND BURLING WHO REPRESENTED THE CHEMICAL MANUFACTURERS ASSOCIATION IN THE CASE IN ONE INSTANCE HE CITES A LENDER WAS SAID TO HAVE DIRECTLY CAUSED THE POLLUTION WHEN IT CONTRACTED FOR THE REMOVAL OF SOME EQUIPMENT FROM A SITE A PENDING CLINTON ADMINISTRATION PROPOSAL TO REAUTHORIZE FUNDING FOR THE FEDERAL SUPERFUND PROGRAM INCLUDES A PROVISION THAT WOULD GIVE THE E. P. A. THE AUTHORITY THAT THE APPEALS COURT SAID IT CURRENTLY LACKS BUT BANKERS AND SOME OTHER INTERESTS ARE CONCERNED ABOUT POSSIBLE DELAYS IN ENACTING THE PLAN FORCING THEM TO RELY INDEFINITELY ON A HAPHAZARD ARRAY OF COURT CASES FOR GUIDANCE CONFUSION IS RAMPANT SAID TOM GRECO ASSOCIATE GENERAL COUNSEL OF THE AMERICAN BANKERS ASSOCIATION WHO PREDICTED THAT THE COURT RULING WOULD PROBABLY REDUCE BANKS' WILLINGNESS TO LEND TO MANUFACTURERS AND OTHER INDUSTRIAL CONCERNS WE REALLY NEED TO HAVE SOME KIND OF LEGISLATIVE FIX HE ADDED INVESTORS ARE ALREADY RECYCLING SOME OF LAST YEAR'S IDEAS LIKE BUYING CABLE STOCKS ON THE POSSIBILITY THAT THOSE COMPANIES WILL BE ACQUIRED BY REGIONAL TELEPHONE COMPANIES THAT IDEA AT LEAST MAY HAVE IMPROVED WITH AGE OVER THE LAST SEVERAL WEEKS CABLE STOCKS HAVE DRIFTED DOWNWARD CHIEFLY ON UNCERTAINTY ABOUT WHAT THE FEDERAL COMMUNICATIONS COMMISSION HAS IN STORE FOR THE INDUSTRY AT A HEARING ON CABLE RATES SET FOR THE END OF THIS MONTH THIS WEEK THE F. C. C. EXTENDED ITS EXISTING FREEZE ON CABLE RATES UNTIL MAY FIFTEENTH SUCH JITTERS MAY HAVE OPENED A WINDOW OF OPPORTUNITY THESE INVESTORS REASON QUOTE CABLE STOCKS DON'T HAVE ANY TAKEOVER PREMIUM IN THEM RIGHT NOW QUOTE SAYS SCOTT BILLEADEAU A PORTFOLIO MANAGER WITH PACIFIC CENTURY ADVISERS IN SAN DIEGO WE'RE PRETTY CONSTRUCTIVE ON THE GROUP HE SAYS MR. BILLEADEAU AND A HANDFUL OF OTHER PROS MENTION CABLEVISION SYSTEMS COMCAST ADELPHIA AND CENTURY COMMUNICATIONS AS THE MOST LIKELY TARGETS OF TAKEOVER BIDS OVER THE NEXT SIX MONTHS OR SO IF SUCH BIDS MATERIALIZE SAYS MR. BILLEADEAU THESE STOCKS WILL SOAR LIKE ROCKETS THE THEORY IS THIS IN ITS PLANNED MERGER WITH BELL ATLANTIC TELE COMMUNICATIONS INCORPORATED IS VALUED AT ELEVEN POINT SEVEN FIVE TIMES CASH FLOW BY CONTRAST MOST CABLE COMPANIES ARE NOW TRADING AT MULTIPLES OF JUST EIGHT TO NINE TIMES THEIR NINETEEN NINETY FOUR CASH FLOW WHICH MAKES THEM RELATIVE BARGAINS SINCE MOST CABLE DEALS APPLY MULTIPLES OF ABOUT TWELVE TIMES CASH FLOW TO ACQUISITION TARGETS A TAKEOVER OFFER COULD SPUR A BIG GAIN IN THE STOCK PRICES OF CABLE COMPANIES FOR EXAMPLE MR. BILLEADEAU FIGURES THAT COMCAST COULD JUMP TO ABOUT THIRTY FROM ITS CLOSING PRICE YESTERDAY OF NINETEEN AND ONE QUARTER WHICH WAS UNCHANGED CENTURY MEANWHILE COULD JUMP TO SEVENTEEN FROM ITS CLOSING PRICE OF TEN AND THREE EIGHTHS YESTERDAY ALSO UNCHANGED A MULTIPLE OF TWELVE TIMES CASH FLOW WOULD RAISE ADELPHIA'S STOCK PRICE TO THIRTY FIVE FROM YESTERDAY'S CLOSE OF TWENTY AND ONE HALF DOWN ONE AND ONE EIGHTH BETTING ON TAKEOVER TARGETS IS A HIGHWIRE ACT UNDER ANY CIRCUMSTANCES IT IS ESPECIALLY SO WITH CABLE STOCKS BECAUSE OF POTENTIAL BAD NEWS LURKING IN THE CORRIDORS OF WASHINGTON INVESTORS ARE PREDICTING A WIDE RANGE OF OUTCOMES FROM THE F. C. C. HEARING SCHEDULED FOR FEBRUARY TWENTY SECOND ONE OF THE MORE BENIGN RESULTS WOULD BE A BAN ON COMPLICATED PRICING STRUCTURES KNOWN AS A LA CARTE PRICING THAT HAVE ALLOWED CABLE COMPANIES TO BOOST RATES FOR ABOUT THIRTY PERCENT OF ALL CUSTOMERS DESPITE AN ORDER BY THE F. C. C. TO CUT SUCH RATES LAST SPRING A MORE DAMAGING OUTCOME FOR CABLE COMPANIES WOULD BE IF THE F. C. C. WERE TO MANDATE ADDITIONAL ROLLBACKS IN RATES THAT WOULD NO DOUBT ANGER CABLE COMPANIES WHICH HAVE ALREADY SEEN A DIP IN THEIR CASH FLOW AS A RESULT OF LAST YEAR'S RATE CUTS THE POSSIBILITY OF ANOTHER RATE ROLLBACK IS FURTHER COMPLICATING THE COMPLETION OF BELL ATLANTIC'S MERGER WITH T. C. I. WHICH IS BASED ON T. C. I.'S CASH FLOW HOWEVER INVESTORS MAY HAVE ALREADY DISCOUNTED EVEN THE WORST POSSIBLE DENOUEMENTS AS CABLE STOCKS HAVE TUMBLED ABOUT TWENTY FIVE PERCENT FROM LAST FALL WHEN THEY WERE RIDING HIGH IN COMMENTS TO CLIENTS TWO WEEKS AGO DENNIS LEIBOWITZ AN ANALYST WITH DONALDSON LUFKIN AND JENRETTE IN NEW YORK SAID WE BELIEVE THAT THE STOCKS HAVE ALREADY LARGELY REACTED TO THIS PENDING REVIEW WHICH HAS ACCOUNTED FOR THE RECENT WEAKNESS AMONG CABLE OPERATORS AND HE POINTS OUT UNCERTAINTY ABOUT WHAT REGULATORS WOULD DO DIDN'T STOP INVESTORS FROM PLOWING MONEY INTO THE GROUP LAST SUMMER LAST YEAR IN THE FACE OF UNCERTAINTY FROM REGULATION MERGER RELATED ACTIVITY HAD AN OVERRIDING EFFECT ON THE STOCKS SAYS MR. LEIBOWITZ IF THERE IS ANOTHER RATE ROLLBACK HE SAYS IT PROBABLY WON'T AMOUNT TO MORE THAN THREE PERCENT TO FOUR PERCENT OF REVENUE OR SIX PERCENT TO EIGHT PERCENT OF CASH FLOW MR. LEIBOWITZ HAS A BUY RECOMMENDATION ON COMCAST INDEED INVESTORS ARE BETTING THAT COMCAST WILL SOON SELL A LARGE EQUITY STAKE TO A REGIONAL TELEPHONE COMPANY PERHAPS BELLSOUTH TO RAISE CASH TO ACQUIRE NEW CABLE SYSTEMS ACCORDING TO ONE BIG INVESTOR COMCAST'S STRATEGY IS TO INCREASE THE NUMBER OF ITS SUBSCRIBERS TO ABOUT FIVE MILLION THAT'S THE MINIMUM NUMBER MANY PROS BELIEVE IS NECESSARY TO SURVIVE THE INTENSIFYING RIVALRIES IN THE TELECOMMUNICATIONS BUSINESS PERHAPS THE BEST CANDIDATE FOR A TAKEOVER CONTINUES TO BE CABLEVISION WHOSE MARKET INCLUDES THE COVETED NEW YORK AREA OTHER REGIONAL TELEPHONE COMPANIES THE THEORY GOES WOULD RELISH THE OPPORTUNITY TO TAKE ON NYNEX WHICH IS CONSIDERED ONE OF THE WEAKEST REGIONAL OPERATORS IN THE BELL SYSTEM THE ANNOUNCEMENT THIS WEEK THAT CABLEVISION PRESIDENT JAMES A. KOFALT PLANS TO RESIGN ONLY ADDED FUEL TO THAT SPECULATION IN THE ANNOUNCEMENT MR. KOFALT SAID IT WAS TIME FOR HE AND THE COMPANY QUOTE TO MOVE IN NEW AND DIFFERENT DIRECTIONS QUOTE PRESIDENT CLINTON DECLARES HIS NEW BUDGET GIMMICK FREE QUOTE IN CONTRAST TO PAST BUDGETS WHICH LACKED CREDIBILITY QUOTE HE WROTE IN HIS INTRODUCTION QUOTE THIS BUDGET DISPENSES WITH SMOKE AND MIRRORS QUOTE ALMOST BUT NOT QUITE MR. PRESIDENT MR. CLINTON FOR INSTANCE PROPOSES TO SPEND TWO POINT SEVEN BILLION DOLLARS NEXT YEAR TO GET HIS HEALTH PLAN UP AND RUNNING BUT DOESN'T COUNT THIS AGAINST THE CAPS ON FEDERAL SPENDING THAT ARE SET BY LAW HOWEVER IN THE FOUR SUBSEQUENT YEARS WHERE THE PRESIDENT HAD A LITTLE MORE WIGGLE ROOM THE SPENDING IS COUNTED AGAINST THE CAP BOTTOM LINE MR. CLINTON PROPOSES TWO POINT SEVEN BILLION DOLLARS MORE SPENDING FOR NEXT YEAR THAN THE CAPS ALLOW THE FINE PRINT IN THE PRESIDENT'S BUDGET ALSO SAYS HE IS COUNTING ON SAVING TEN POINT SIX BILLION DOLLARS OVER THE NEXT FIVE YEARS BY REINVENTING FEDERAL PROCUREMENT AS CHAIRMAN SAM NUNN D. GEORGIA OF THE SENATE ARMED SERVICES COMMITTEE NOTES THE PENTAGON DOES MORE PROCUREMENT THAN ANY OTHER AGENCY BOTTOM LINE MR. CLINTON PROPOSES TO SPEND LESS ON DEFENSE THAN HIS BUDGET SAYS HE DOES AND THEN THERE'S THE RHETORIC THE BUDGET ASSERTS THAT SEVEN OF THE FOURTEEN MAJOR DEPARTMENTS FACE A BUDGET CUT IN NOMINAL TERMS THE TABLE ON THE FACING PAGE SHOWS THAT MR. CLINTON PROPOSES TO REDUCE BUDGET AUTHORITY THE MONEY THAT GOES INTO AGENCY CHECKBOOKS TO BE SPENT IN SOME FUTURE YEAR FOR FOUR DEPARTMENTS AND TO REDUCE OUTLAYS OR THE MONEY THAT COMES OUT OF THE CHECKBOOKS NEXT YEAR FOR SIX INSTEAD OF USING A CONSISTENT STANDARD THE WHITE HOUSE COUNTED ANY DEPARTMENT THAT HAD EITHER A CUT IN BUDGET AUTHORITY OR OUTLAYS WE HAVE PRESENTED NO GIMMICKS HERE BUDGET DIRECTOR LEON PANETTA SAID THIS WEEK WHAT YOU SEE IS WHAT YOU GET IN THIS BUDGET BUT MARTHA PHILLIPS HEAD OF THE DEFICIT FIGHTING CONCORD COALITION SAYS THE P. R. JOB THAT'S BEING DONE ON THE NUMBERS BY THE CLINTON ADMINISTRATION IS ON A PAR WITH ITS PREDECESSORS AT LEAST MR. PANETTA'S SPOKESMAN SAID THE HEALTH COST ITEM WAS HANDLED UNUSUALLY BECAUSE THE ADMINISTRATION ISN'T SURE ITS PLAN WILL BE ADOPTED AND DIDN'T WANT TO TAKE MONEY FROM OTHER PROGRAMS HE ADDED THE WHITE HOUSE DOESN'T BELIEVE A SIGNIFICANT FRACTION OF THE PROCUREMENT REFORM SAVINGS WILL COME FROM THE PENTAGON DEFENSE SECRETARY WILLIAM PERRY SAID THIS WEEK HE WASN'T SO SURE THE FLAWS IN THE BUDGET UNDERMINE ITS CREDIBILITY BUT DON'T CHANGE THE MESSAGE THE FEDERAL DEFICIT IS SHRINKING AS IT DID LAST YEAR THE CLINTON ADMINISTRATION ADOPTED ECONOMIC ASSUMPTIONS IN LINE WITH THOSE OF PRIVATE FORECASTERS A MOVE THAT IS ESPECIALLY IMPORTANT TO FINANCIAL MARKETS' VIEW OF THE BUDGET BUT THE SMALL BAND OF PEOPLE WHO ACTUALLY READ THE TABLES IN THE BACK OF WHITE HOUSE BUDGETS ARE TURNING UP EVIDENCE TO CHALLENGE THE CLAIM THAT THIS BUDGET IS WITHOUT SIN AND THAT IGNORES CONTROVERSY OVER THE ACCOUNTING FOR THE CLINTON HEALTH PLAN QUOTE THE BUDGET IS AS REMARKABLE FOR WHAT IT LEAVES OUT AS FOR WHAT IT TELLS US QUOTE SAYS CAROL COX WAIT PRESIDENT OF THE PRIVATE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET IT LEAVES OUT THE COST OF WELFARE REFORM OF IMPLEMENTING THE WORLD WIDE TRADE AGREEMENT STRUCK LAST YEAR OF THE CALIFORNIA EARTHQUAKE AND OF OVERHAULING THE SUPERFUND HAZARDOUS WASTE CLEAN UP PROGRAM SHE SAYS AND WE CAN'T TELL FROM THE BUDGET WHETHER OR NOT THE ADMINISTRATION FAVORS THE EXTENSION OF EXPIRING TAX LAWS MS. WAIT SAYS A POPULAR TAX PROVISION THAT ALLOWS EMPLOYERS TO REIMBURSE WORKERS FOR TUITION FOR INSTANCE EXPIRES DECEMBER THIRTY FIRST NINETEEN NINETY FOUR HAD MR. CLINTON SOUGHT TO EXTEND IT AS HE UNDOUBTEDLY WANTS TO DO HE WOULD HAVE HAD TO EXPLAIN HOW TO PAY FOR IT TOKYO STOCKS TUMBLED TWO PERCENT WEDNESDAY AS JAPAN'S ECONOMY BOOSTING PACKAGE WAS CONSIDERED INSUFFICIENTLY STIMULATING AND A RALLY WAS INTERRUPTED BY SELLING OF STOCK INDEX FUTURES BY INSTITUTIONAL INVESTORS LONDON PRICES REBOUNDED FROM DEEP LOSSES TO END SLIGHTLY LOWER FRANKFURT SHARES RETREATED ONE PERCENT ON PROFIT TAKING WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED FIFTEEN POINT NINE SIX DOWN ZERO POINT TWO THREE REFLECTING LOWER ASIA SLASH PACIFIC AND EUROPEAN MARKETS AND HIGHER AMERICAN MARKETS HOUSEHOLD PRODUCTS SLASH NON DURABLES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED NINETEEN POINT SEVEN SIX UP TWO POINT FIVE TWO OR TWO POINT TWO PERCENT WITH PROCTER AND GAMBLE OF THE U. S. POSTING A THREE POINT SEVEN PERCENT GAIN IN ITS LOCAL CURRENCY POLLUTION STOCKS TRAILED AT SEVENTY TWO POINT FIVE EIGHT DOWN FOUR POINT EIGHT TWO OR SIX POINT TWO PERCENT WITH WMX TECHNOLOGIES OF THE U. S. SLIDING ELEVEN PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH GAINED TWO HUNDRED THIRTY SIX POINT EIGHT THREE POINTS TUESDAY LOST FOUR HUNDRED NINE POINT EIGHT FIVE TO NINETEEN THOUSAND EIGHT HUNDRED FORTY ONE POINT THREE EIGHT ITS FIRST FINISH BELOW TWENTY THOUSAND SINCE JANUARY TWENTY EIGHTH IN TRADING THURSDAY THE NIKKEI EASED TWENTY TWO POINTS TO CLOSE THE MORNING SESSION AT NINETEEN THOUSAND EIGHT HUNDRED NINETEEN POINT THREE EIGHT WEDNESDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT FOUR HUNDRED FIFTY MILLION SHARES DOWN FROM SIX HUNDRED SIXTEEN POINT FOUR MILLION SHARES A DAY EARLIER DECLINING SWAMPED GAINERS NINE HUNDRED FIFTEEN TO ONE HUNDRED SIXTY EIGHT THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH ROSE FIFTEEN POINT TWO SIX POINTS TUESDAY SANK EIGHTEEN POINT SIX EIGHT OR ONE POINT TWO PERCENT TO ONE THOUSAND FIVE HUNDRED NINETY EIGHT POINT OH TWO INVESTORS SEARCHING FOR BUYING INCENTIVES DIDN'T FIND ANY IN JAPAN'S ECONOMIC STIMULUS MEASURES WHICH DIDN'T SURPASS EXPECTATIONS ENTHUSIASM ALSO WAS SAPPED BY THE GOVERNMENT'S DECISION NOT TO SPECIFY HOW IT WOULD FINANCE TAX CUTS AND RATHER TO NEGOTIATE OFFSETTING INCREASES LATER SIGNALING FURTHER POLITICAL BATTLES FUTURES WERE SOLD BECAUSE OF WORRIES THAT JAPAN U. S. TRADE NEGOTIATIONS THIS WEEK COULD STUMBLE PUSHING THE JAPANESE YEN HIGHER THE SELL OFF ALSO WAS SPURRED BY DOMESTIC INVESTORS' SALES OF NIKKEI TWO HUNDRED TWENTY FIVE FUTURES AHEAD OF THE LAUNCH OF NIKKEI THREE HUNDRED DERIVATIVES AND BY A SENSE THAT THE STOCK MARKET NEEDS EITHER NEW BUYING INCENTIVES OR A CORRECTION BEFORE IT CAN PUSH HIGHER OVERSEAS INVESTORS WHOSE PURCHASES SPURRED THE MARKET'S TORRID PACE LAST MONTH CONTINUED TO BUY THOUGH SOME TOOK PROFITS IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX FELL ELEVEN POINT ONE POINTS TO THREE THOUSAND FOUR HUNDRED TWENTY NINE POINT ONE THOUGH IT WAS UP SOLIDLY FROM THE INTRADAY LOW OF THREE THOUSAND FOUR HUNDRED THREE POINT SEVEN THE F. T. THIRTY STOCK INDEX DROPPED SEVEN POINT SEVEN POINTS TO TWO THOUSAND SIX HUNDRED THIRTY FOUR POINT TWO VOLUME WAS NINE HUNDRED TWELVE MILLION SHARES DOWN FROM ONE POINT OH TWO BILLION SHARES TUESDAY A STRONG EARLY PERFORMANCE ON WALL STREET HELPED REVERSE LONDON'S SLIDE THE GAINS IN NEW YORK EASED FEARS IN BRITAIN THAT HIGHER U. S. INTEREST RATES WOULD CREATE A DOMINO EFFECT OF FALLING SHARE PRICES THROUGHOUT WORLD MARKETS BRITAIN'S CUT TUESDAY IN THE BASE LENDING RATE TO FIVE POINT TWO FIVE PERCENT FROM FIVE POINT FIVE PERCENT LEFT THE BOURSE CONFUSED THOUGH LOWER RATES HAD BEEN LONG ANTICIPATED INVESTORS HAD ANTICIPATED A REDUCTION OF ONE HALF PERCENTAGE POINT AND THE QUARTER POINT SHAVE WASN'T EXPECTED TO HAVE MUCH EFFECT STILL INVESTORS HOPED FOR ANOTHER TRIM TO BRING BRITAIN'S RATE DOWN TO FIVE PERCENT IN THE BANKING SECTOR WHERE PRICES ARE AT HIGH PREMIUMS TO THE OVERALL MARKET MOST SHARES DECLINED AS THE RATE CUT CREATED WORRIES THAT BANKS' INTEREST RATE MARGINS WOULD FALL THOUGH ANALYSTS SAID BANKS WILL BE HELPED IN THE LONG TERM BY LOWER RATES WHICH WILL MAKE IT EASIER FOR BORROWERS TO REPAY LOANS IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX FELL TWENTY ONE POINT NINE TWO POINTS TO TWO THOUSAND EIGHTY FIVE POINT TWO NINE LOSING MOST OF THE PREVIOUS SESSION'S GAINS TRADING WAS LIGHT EASILY CAUSING PRICE SWINGS OF THE D. A. X. STOCKS SIX ADVANCED AND TWENTY THREE DECLINED IN PARIS STOCKS ENDED MIXED TO SLIGHTLY HIGHER RECOVERING FROM A ONE POINT ONE PERCENT LOSS DURING THE SESSION ON LOCAL BUYING IN LATE DEALINGS LIKEWISE IN AMSTERDAM PRICES FOUND LATE STRENGTH TO SCRAMBLE UP FROM LOWS AND FINISH MIXED IN REACTION TO WALL STREET'S EARLY FIRMNESS EARLY ACTIVITY WAS DAMPED BY DROPS IN OTHER EUROPEAN MARKETS AND IN TOKYO IN MADRID TOO SHARES STAGED A LATE REBOUND FROM LOWS TO CLOSE WITH SLIGHT LOSSES AFTER WALL STREET'S EARLY STRENGTH IN MILAN EQUITIES SOFTENED HAMPERED BY TECHNICAL FACTORS SUCH AS THE LOOMING SETTLEMENT DATE FOR THE FEBRUARY TRADING ACCOUNT IN BRUSSELS THE BROAD MARKET ENDED MIXED THOUGH THE MAIN INDEX SURGED FROM NEGATIVE TERRITORY TO END SLIGHTLY HIGHER AND LOG ITS SECOND RECORD IN A ROW IN STOCKHOLM SHARES DECLINED IN HEAVY TRADING AS RISING SWEDISH INTEREST RATES AND WEAK PERFORMANCES IN SOME MAJOR MARKETS ABROAD DEPRESSED PRICES VOLATILITY IN RECENT SESSIONS CREATED DOUBTS ABOUT WHETHER THE STOCKHOLM BOURSE COULD MAINTAIN THE ADVANCES THAT BEGAN LAST MONTH AND SOME INVESTORS TOOK PROFITS IN ZURICH THIS WEEK'S LOSSES INCREASED TO THREE POINT SIX PERCENT AFTER PRICES FELL FROM SELLING SPARKED BY A REPORT THAT A MAJOR SWISS BANK CUT ITS EXPOSURE TO STOCKS TO FORTY PERCENT FROM FIFTY PERCENT FOR ITS MANAGED PORTFOLIOS A STRATEGY CHANGE TRIGGERED BY THE U. S. CREDIT TIGHTENING LAST FRIDAY SOME INVESTORS ALSO BELIEVED MAJOR WORLD MARKETS HAVE TOPPED OUT FOR NOW IN SYDNEY SHARE PRICES DIVED IN AFTERNOON TRADING ENDING WITH A ONE POINT FIVE PERCENT LOSS ON ACTIVE ARBITRAGE DEALINGS BETWEEN THE STOCK AND FUTURES MARKETS HEAVY SELLING OF THE STOCK INDEX FUTURES CONTRACT PUSHED IT TO A DISCOUNT TO THE MARKET'S MAIN INDEX BUT THIS DIDN'T UNNERVE INVESTORS AS FUNDAMENTALS REMAINED UNALTERED IN HONG KONG'S SHORTENED SESSION AHEAD OF A HOLIDAY FOR THE CHINESE NEW YEAR STOCKS INITIALLY GAINED ON A GOOD SHOWING FOR HONG KONG STOCKS IN LONDON AND WALL STREET'S FLAT SHOWING TUESDAY BUT THE MARKET LACKED A MOTIVE TO SUPPORT FURTHER RISES AND BUYING INTEREST PETERED OUT LEAVING PRICES SLIGHTLY HIGHER IN SINGAPORE SHARES ALSO CLOSED A HALF DAY SESSION HIGHER AHEAD OF THE HOLIDAY THE MARKET WAS HELPED BY BARGAIN HUNTING AND BUYING BY FOREIGN INVESTORS AND REINED IN BY INSTITUTIONS WHICH WERE CAUTIOUS ABOUT VOLATILITY IN MANILA SHARES ADVANCED ONE POINT FOUR PERCENT IN MODERATE TURNOVER BOOSTED BY STRONG BUYING LATE IN THE SESSION LED BY UTILITIES BANKS AND CONTRACTORS IN BANGKOK STOCKS RALLIED TWO POINT EIGHT PERCENT ON IMPROVED SENTIMENT BUT ACTIVITY WAS THIN AHEAD OF A HOLIDAY THURSDAY THE KUALA LUMPUR TAIPEI AND SEOUL BOURSES WERE CLOSED FOR LUNAR NEW YEAR OBSERVANCES 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END THE SECURITIES AND EXCHANGE COMMISSION IS TRYING FOR A SECOND TIME TO MAKE IT EASIER FOR THE AGENCY TO IDENTIFY LARGE SECURITIES TRANSACTIONS THAT TOOK PLACE IN VOLATILE MARKET SESSIONS UNDER A RULE PROPOSED YESTERDAY SECURITIES BROKERS WOULD BE REQUIRED TO MAINTAIN ELECTRONIC RECORDS OF ALL TRADES BY LARGE TRADERS THE TRADERS THEMSELVES WOULD BE REQUIRED TO REGISTER WITH THE S. E. C. THE S. E. C. ALSO PROPOSED A SEPARATE RULE REQUIRING BROKER DEALERS THAT OPERATE AUTOMATED TRADING SYSTEMS TO KEEP RECORDS OF TRADING VOLUME AND SYSTEM PARTICIPANTS AND TO REPORT TRADING ACTIVITY EACH QUARTER TO THE S. E. C. THE RULE WAS SUGGESTED IN THE AGENCY STAFF'S RECENT MARKET TWO THOUSAND REPORT THE EFFORT TO COLLECT LARGE TRADER REPORTS DATES BACK TO THE MONTHS FOLLOWING THE NINETEEN EIGHTY SEVEN STOCK MARKET CRASH WHEN THE S. E. C. AND THE STOCK EXCHANGES HAD GREAT DIFFICULTY RECONSTRUCTING RECORDS OF THE LARGE TRADES THAT TOOK PLACE BEFORE AND DURING THE MARKET DROP A SIMILAR EFFORT TO TRACK LARGE TRADES IN THE NINETEEN EIGHTY NINE MARKET DROP LASTED SIX MONTHS S. E. C. STAFFERS SAID BUT THE AGENCY'S FIRST PROPOSED REMEDY OFFERED IN AUGUST NINETEEN NINETY ONE WAS ROUNDLY OPPOSED BY BROKERS AND LARGE TRADERS THE NEW PROPOSAL INCORPORATES SOME OF THE SUGGESTIONS FROM THOSE GROUPS INCLUDING A DIFFERENT DEFINITION OF LARGE TRADER THE NEW RULE WOULD COVER INDIVIDUALS AND INSTITUTIONS THAT TRADE A MINIMUM OF TWO HUNDRED THOUSAND SHARES WITH A MARKET VALUE OF TWO MILLION DOLLARS OR MORE IN TWENTY FOUR HOURS IT WOULD ALSO APPLY TO TRADERS WHOSE TRANSACTIONS IN TWENTY FOUR HOURS TOTAL TEN MILLION DOLLARS OR MORE THE OLD PROPOSAL DEFINED LARGE TRADERS AS THOSE TRADING A MINIMUM OF ONE HUNDRED THOUSAND SHARES OR FOUR MILLION DOLLARS IN TWENTY FOUR HOURS THE RULE WOULD REQUIRE BROKERS TO KEEP RECORDS OF LARGE TRADERS' TRANSACTIONS AND PROVIDE THOSE RECORDS TO THE S. E. C. IF REQUESTED QUOTE A LOT OF THE INFORMATION THAT THIS DEALS WITH IS INFORMATION THAT THE S. E. C. ALREADY HAS ACCESS TO QUOTE SAID MARK FITTERMAN ASSOCIATE DIRECTOR OF THE AGENCY'S MARKET REGULATION DIVISION THE ULTIMATE GOAL IS TO PERMIT US AS AN AGENCY TO EXPLAIN WHAT HAPPENS IN PERIODS OF MARKET VOLATILITY THE S. E. C. WILL COLLECT COMMENTS FOR SIXTY DAYS ON THE LARGE TRADER TRACKING PROPOSAL AS WELL AS THE PROPOSED RECORD KEEPING REQUIREMENTS FOR AUTOMATED TRADING SYSTEMS FINAL RULES WILL BE PROPOSED AFTER THE COMMENTS ARE STUDIED A PANEL OF MEDICAL EXPERTS DECLARED THAT A BACTERIUM IS THE UNDERLYING CAUSE OF MOST PEPTIC ULCERS AND URGED DOCTORS TO BEGIN USING ANTIBIOTICS TO TREAT INFECTED ULCER PATIENTS THE PANEL'S RECOMMENDATIONS WOULD MARK A DRASTIC CHANGE IN THE WAY PHYSICIANS TREAT PEPTIC ULCERS WHICH ARE PRESENT IN FOUR MILLION AMERICANS THE PANEL'S FINDINGS COULD GREATLY REDUCE TREATMENT COSTS NOW MOST PATIENTS ARE GIVEN DRUGS THAT STOP THE PRODUCTION OF STOMACH ACID AND SWITCHING TO ANTIBIOTICS IS LIKELY TO HURT SALES OF THOSE DRUGS BUT BRITAIN'S GLAXO HOLDINGS P. L. C. WHICH MAKES ZANTAC THE WORLD'S BIGGEST SELLING DRUG AND SMITHKLINE BEECHAM P. L. C. WHICH SELLS TAGAMET SAID THEY DIDN'T EXPECT OVERALL SALES TO BE DOWN SHARPLY SINCE BOTH DRUGS ARE MOSTLY USED TO TREAT SEVERE HEARTBURN AND OTHER NONULCER DISORDERS HOWEVER THE PANEL SAID RESEARCH SHOULD BE UNDERTAKEN TO SEE IF PATIENTS WHO HAVE OTHER STOMACH CONDITIONS AND ARE INFECTED BY THE BACTERIUM CAN BE HELPED BY ANTIBIOTICS THE PANEL OF FIFTEEN MEDICAL EXPERTS WAS CONVENED HERE BY THE NATIONAL INSTITUTES OF HEALTH TO EVALUATE A DECADE OF RESEARCH AND CONTROVERSY OVER THE ROLE OF THE BACTERIUM IN ULCERS AFTER HEARING A DAY AND A HALF OF TESTIMONY BY ULCER RESEARCHERS THE PANEL YESTERDAY ISSUED A QUOTE CONSENSUS STATEMENT QUOTE ALL PATIENTS WITH GASTRIC OR DUODENAL ULCERS WHO ARE INFECTED WITH THE BACTERIUM SHOULD BE TREATED WITH ANTIMICROBIALS REGARDLESS OF WHETHER THEY ARE SUFFERING FROM THE INITIAL PRESENTATION OF THE DISEASE OR FROM A RECURRENCE THE PANEL STATED THE PANEL SAID TWO WEEKS OF ANTIBIOTIC THERAPY SHOULD ERADICATE THE ULCER CAUSING BACTERIUM CALLED H. PYLORI FROM THE STOMACH AND UPPER PART OF THE SMALL INTESTINE AND THUS CURE THE PATIENTS OF PEPTIC ULCER DISEASE THIS REDUCES THE CHANCES OF THE ULCER RECURRING TO LESS THAN TEN PERCENT FOR THOSE PATIENTS WHO HAVE ALREADY BEEN DIAGNOSED WITH AN ULCER THERE ARE SEVERAL DIAGNOSTICS THAT MIGHT BE USED TO SEE IF THEY ARE INFECTED WITH H. PYLORI BUT NOT ALL ARE YET AVAILABLE SEVERAL KITS FOR A BLOOD TEST THAT LABORATORIES CAN USE TO DIAGNOSE THE INFECTION ARE AVAILABLE THE PANEL SAID ONE PART OF THE PANEL'S STATEMENT MAY STIR CONSIDERABLE CONTROVERSY THIS INVOLVES WHICH OF SEVERAL POSSIBLE COMBINATIONS OF DRUGS DOCTORS SHOULD USE TO TREAT ULCER PATIENTS INFECTED WITH THE BACTERIUM DURING THE PANEL'S HEARINGS RESEARCHERS DESCRIBED THE EFFECTIVENESS OF A HALF DOZEN DIFFERENT COMBINATIONS OF ANTIBIOTICS AND ULCER HEALING DRUGS IN ERADICATING THE BACTERIUM AT PRESENT MOST PEPTIC ULCER PATIENTS ARE INITIALLY TREATED WITH DRUGS LIKE TAGAMET AND ZANTAC KNOWN AS H. TWO BLOCKERS THAT STOP STOMACH ACID PRODUCTION DRUGS AND GENETIC FACTORS ALSO CAUSE ULCERS THESE HIGHLY EFFECTIVE DRUGS SPEED THE HEALING OF ULCERS BUT IF THE PATIENT STOPS TAKING THEM HE OR SHE HAS A FIFTY PERCENT TO EIGHTY PERCENT CHANCE OF THE ULCER RECURRING AS A RESULT MANY ULCER PATIENTS MUST CONTINUE TAKING AN H. TWO BLOCKER FOR YEARS ERADICATING H. PYLORI WOULD END THE PATIENTS' NEEDS FOR LONG TERM USE OF THE H. TWO BLOCKERS THE PANEL HEARD ONE REPORT ON THE ECONOMICS OF THE NEW ANTIBIOTIC THERAPY PRESENTED BY AMNON SONNENBERG A GASTROENTEROLOGIST AT THE MEDICAL COLLEGE OF WISCONSIN IN MILWAUKEE HE NOTED THAT PEPTIC ULCER DISEASE USUALLY LASTS ABOUT FIFTEEN YEARS BEFORE USUAL TREATMENTS CURE IT THE NEW ANTIBIOTIC THERAPY HE ESTIMATED WOULD COST ABOUT NINE HUNDRED TWENTY FIVE DOLLARS DURING THIS TIME WHEREAS FIFTEEN YEARS OF MAINTENANCE THERAPY WITH THE H. TWO BLOCKERS WOULD COST MORE THAN ELEVEN THOUSAND FIVE HUNDRED DOLLARS STOMACH SURGERY WHICH IS DONE WHEN ULCERS BLEED REPEATEDLY WOULD COST ALMOST EIGHTEEN THOUSAND DOLLARS H. TWO BLOCKERS ARE A HUGE MARKET ESTIMATED AT FIVE BILLION DOLLAR WORLD WIDE GLAXO'S ZANTAC HAD SALES OF THREE POINT FIVE BILLION DOLLARS IN THE FISCAL YEAR ENDING LAST JUNE REPRESENTING NEARLY HALF THE COMPANY'S SALES SMITHKLINE'S TAGAMET THE ORIGINAL H. TWO BLOCKER REPRESENTS ANOTHER BILLION DOLLARS IN YEARLY SALES BUT GLAXO AND SMITHKLINE REPRESENTATIVES POINTED OUT THAT MOST OF THEIR DRUGS' SALES WOULDN'T BE AFFECTED BY ANY CHANGE IN THE TREATMENT OF ULCERS NONULCER TREAT MENTS SUCH AS FOR SEVERE HEARTBURN ACCOUNT FOR ABOUT SEVENTY PERCENT OF ZANTAC'S SALES A GLAXO SPOKESWOMAN SAID A SMITHKLINE SPOKESMAN SAID LESS THAN FIFTEEN PERCENT OF TAGAMET PRESCRIPTIONS WOULD BE AFFECTED BY THE SUGGESTED CHANGES IN ULCER TREATMENT H. TWO BLOCKERS WOULD CONTINUE TO BE USED ALONG WITH ANTIBIOTICS AS AN INITIAL TREATMENT FOR ULCERS AND WOULD BE USED AS MAINTENANCE THERAPY IN PATIENTS WITH COMPLICATIONS SUCH AS BLEEDING THE GLAXO SPOKESWOMAN SAID GLAXO IS TESTING A PRODUCT THAT COMBINES ZANTAC AND BISMUTH TO SEE IF IT IS EFFECTIVE AGAINST THE BACTE RIUM SHE SAID THE MOST EFFECTIVE COMBINATION OF DRUGS ERADICATING THE BACTERIUM FROM ABOUT NINETY PERCENT OF PATIENTS IS THE SO CALLED TRIPLE THERAPY CONSISTING OF BISMUTH SUBSALICYLATE SOLD IN THE U. S. AS PEPTO BISMOL BY PROCTER AND GAMBLE COMPANY PLUS METRONIDAZOLE AND EITHER TETRACYCLINE OR AMOXICILLIN THE PANEL SAID THE PANEL NOTED THAT ANOTHER TRIPLE THERAPY ERADICATING THE BACTERIUM IN NINETY PERCENT OF PATIENTS INCLUDED TWO ANTIBIOTICS AMOXICILLIN AND METRONIDAZOLE PLUS GLAXO'S ZANTAC BUT THE PANEL SAID TRIPLE COMBINATIONS MAY BE DIFFICULT FOR PATIENTS TO TAKE SINCE THEY INVOLVE TAKING SEVERAL PILLS THREE OR FOUR TIMES A DAY FOR TWO WEEKS AN EASIER COMBINATION FOR THE PATIENTS TO USE FOR TWO WEEKS BUT WHICH ERADICATES THE BACTERIUM FROM EIGHTY PERCENT OF PATIENTS IS THE ANTIBIOTIC AMOXICILLIN TAKEN FOUR TIMES A DAY PLUS OMEPRAZOLE TAKEN TWICE A DAY THE LATTER IS AN ULCER HEALING DRUG DEVELOPED BY A. B. ASTRA OF SWEDEN WHICH SELLS IT AS LOSEC IN MOST PARTS OF THE WORLD IN THE U. S. IT IS SOLD BY MERCK AND COMPANY WHITEHOUSE STATION N. J. AS PRILOSEC THE DRUG STOPS PRODUCTION OF STOMACH ACID BUT BY A DIFFERENT MEANS THAN THE H. TWO BLOCKERS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MERCK STOCK ROSE THIRTY SEVEN POINT FIVE CENTS OR ONE POINT ONE PERCENT TO CLOSE AT THIRTY FOUR POINT EIGHT SEVEN FIVE DOLLARS A SHARE MEANWHILE AMERICAN DEPOSITARY RECEIPTS OF GLAXO FELL TWENTY FIVE CENTS OR ONE POINT THREE PERCENT TO CLOSE AT NINETEEN POINT ONE TWO FIVE DOLLARS WHILE AMERICAN DEPOSITARY SHARES OF SMITHKLINE ROSE TWENTY FIVE CENTS OR ZERO POINT EIGHT PERCENT TO CLOSE AT THIRTY POINT EIGHT SEVEN FIVE DOLLARS A SHARE HOW RAPIDLY DOCTORS WILL BEGIN USING THE NEW APPROACH TO ULCERS IS UNCERTAIN VERY FEW PHYSICIANS ARE TREATING THE INFECTION TODAY POSSIBLY ONLY ONE PERCENT OR TWO PERCENT OF DOCTORS ESTIMATED GASTROENTEROLOGIST TADATAKA YAMADA OF THE UNIVERSITY OF MICHIGAN WHO HEADED THE EXPERT PANEL MOST OF THE DRUGS USED IN THE NEW THERAPY ARE ALREADY ON THE MARKET BUT THEIR MANUFACTURERS HAVEN'T YET RECEIVED APPROVAL FROM THE U. S. FOOD AND DRUG ADMINISTRATION TO PROMOTE THE USE OF THE COMBINATIONS FOR THE TREATMENT OF INFECTED ULCER PATIENTS A STATEMENT ISSUED BY ASTRA AND MERCK SAID THAT RESEARCH ON ANTIBIOTIC OMEPRAZOLE TREATMENT IN DUODENAL ULCER PATIENTS HAS BEEN UNDER WAY FOR SOME TIME IN EUROPE AND THE U. S. A SPOKESMAN FOR ABBOTT LABORATORIES WHOSE CLARITHROMYCIN ANTIBIOTIC IS USED IN SOME OF THE COMBINATIONS SAID THE COMPANY IS NOW GATHERING PATIENT DATA ON THE NEW TREATMENT PREPARATORY TO APPLYING FOR F. D. A. APPROVAL DOCTORS HOWEVER ARE FREE TO PRESCRIBE THE DRUGS FOR THEIR ULCER PATIENTS EVEN IF SUCH USE HASN'T BEEN APPROVED BY THE F. D. A. HOW SOON THEY WILL SWITCH TO THE THERAPY MAY WELL DEPEND ON HOW MUCH PUBLICITY SURROUNDS THE PANEL'S REPORT AT LEAST ONE GROUP THE AMERICAN GASTROENTEROLOGICAL ASSOCIATION'S FOUNDATION SAID DETECTION AND ELIMINATION OF THE BACTERIUM WILL BE THE FIRST TARGET OF A NEW EDUCATION PROGRAM IT'S LAUNCHING ON DIGESTIVE DISEASES IN ADDITION THE CONSENSUS STATEMENTS ISSUED BY THE N. I. H. PANELS OFTEN ARE VIEWED AS STANDARDS OF PRACTICE AND THE PANEL'S STATEMENT MAY ADD TO THE PRESSURE ON DOCTORS TO SWITCH TO THE ANTIBIOTIC THERAPY AS FOR SALES OF GLAXO AND SMITHKLINE THE MORE IMMEDIATE PROBLEM FACING ALL H. TWO BLOCKERS IS THE MAY PATENT EXPIRATION OF TAGAMET A GENERIC TAGAMET IS A THREAT TO ZANTAC AND MERCK'S PEPCID ANALYSTS SAID BECAUSE MANY PHYSICIANS AND MANAGED CARE ORGANIZATIONS VIEW ALL THE DRUGS AS INTERCHANGEABLE QUOTE THE SINGLE MOST IMPORTANT ISSUE FOR ZANTAC IS THE TAGAMET PATENT EXPIRATION QUOTE SAID ALEX ZISSON AN ANALYST AT HAMBRECHT AND QUIST THE EXPERT PANEL'S RECOMMENDATION IS A THEORETICAL ISSUE WITH MANY UNRESOLVED QUESTIONS HE ADDED AND IS OF LESS IMMEDIATE CONCERN TO INVESTORS ELYSE TANOUYE CONTRIBUTED TO THIS ARTICLE THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ARVIN INDUSTRIES INCORPORATED SEVENTY FIVE MILLION DOLLARS OF NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND ONE PRICED AS SIX POINT EIGHT SEVEN FIVES AT NINETY NINE POINT EIGHT ONE TO YIELD SIX POINT NINE ONE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE HUNDRED TWENTY FIVE BASIS POINTS ABOVE THE SEVEN POINT SEVEN FIVE PERCENT TREASURY MATURING IN FEBRUARY TWO THOUSAND ONE RATED B. A ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND TRIPLE B. MINUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY FEDERAL HOME LOAN BANK SYSTEM TWO HUNDRED FIVE MILLION DOLLARS OF NOTES DUE FEBRUARY TWENTY FOURTH NINETEEN NINETY SEVEN PRICED INITIALLY AT PAR TO YIELD FOUR POINT NINE TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE ISSUE NONCALLABLE FOR ONE YEAR WAS PRICED AT A SPREAD OF ELEVEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY FEDERAL HOME LOAN MORTGAGE CORPORATION TWO HUNDRED MILLION DOLLARS OF NOTES DUE FEBRUARY EIGHTEENTH TWO THOUSAND FOUR PRICED INITIALLY AT PAR TO YIELD SIX POINT FOUR EIGHT FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF FIFTY SIX BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY FEDERAL HOME LOAN MORTGAGE CORPORATION ONE HUNDRED MILLION DOLLARS OF STEPUP NOTES DUE FEBRUARY FOURTEENTH NINETEEN NINETY SEVEN PRICED AT PAR TO YIELD FOUR POINT FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF FOURTEEN BASIS POINTS ABOVE TREASURYS THE COUPON RISES TO FIVE POINT TWO FIVE PERCENT AFTER ONE YEAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY G. B. PROPERTY FUNDING CORPORATION ONE HUNDRED EIGHTY FIVE MILLION DOLLARS OF FIRST MORTGAGE NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AT PAR TO YIELD TEN POINT EIGHT SEVEN FIVE PERCENT THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLE B. TWO BY MOODY'S AND SINGLE B. PLUS BY S. AND P. G. B. PROPERTY IS A UNIT OF PRATT HOTEL CORPORATION NEXTEL COMMUNICATIONS INCORPORATED SEVEN HUNDRED MILLION DOLLARS PROCEEDS OF SENIOR REDEEMABLE DISCOUNT NOTES DUE AUGUST FIFTEENTH TWO THOUSAND FOUR PRICED AT SIXTY TWO POINT ONE FOUR THREE TO YIELD NINE POINT SEVEN FIVE PERCENT THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF THREE HUNDRED EIGHTY THREE BASIS POINTS ABOVE TREASURYS NO COUPON WILL BE PAID FOR FIVE YEARS RATED SINGLE B. THREE BY MOODY'S AND TRIPLE C. MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY PRT FUNDING CORPORATION EIGHTY FIVE MILLION DOLLARS OF SENIOR NOTES DUE APRIL FIFTEENTH TWO THOUSAND FOUR PRICED AT PAR TO YIELD ELEVEN POINT SIX TWO FIVE PERCENT THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLE B. TWO BY MOODY'S AND SINGLE B. MINUS BY S. AND P. PRT FUNDING IS A UNIT OF PRATT HOTEL CORPORATION STUDENT LOAN MARKETING ASSOCIATION SEVEN HUNDRED MILLION DOLLARS OF FLOATING RATE NOTES DUE FEBRUARY TWENTY SECOND NINETEEN NINETY NINE PRICED AT PAR ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WILL FLOAT WEEKLY AND PAY QUARTERLY AT TWENTY BASIS POINTS OVER NINETY ONE DAY TREASURY BILLS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY VENTURE HOLDINGS TRUST ONE HUNDRED MILLION DOLLARS OF SENIOR SUBORDINATED NOTES DUE APRIL FIRST TWO THOUSAND FOUR PRICED AT PAR TO YIELD NINE POINT SEVEN FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLE B. THREE BY MOODY'S AND SINGLE B. BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY ALEXANDER BROWN AND SONS INCORPORATED WACHOVIA BANK OF NORTH CAROLINA N. A. SEVENTY FIVE MILLION DOLLARS OF NOTES DUE FEBRUARY SIXTEENTH NINETEEN NINETY SIX PRICED AS FOUR POINT TWO FIVES AT NINETY NINE POINT NINE ONE SEVEN TO YIELD FOUR POINT FIVE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF THIRTEEN BASIS POINTS ABOVE TREASURYS RATED DOUBLE A TWO BY MOODY'S AND DOUBLE A PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY J. P. MORGAN SECURITIES INCORPORATED WACHOVIA BANK IS A UNIT OF FIRST WACHOVIA CORPORATION AMERICAN PAGING INCORPORATED INITIAL PUBLIC OFFERING OF THREE POINT FIVE MILLION COMMON SHARES PRICED AT FOURTEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY AMERICAN PAGING IS A UNIT OF TELEPHONE AND DATA SYSTEMS INCORPORATED ISTITUTO MOBILIARE ITALIANO COMPANY INITIAL OFFERING OF ELEVEN POINT SEVEN MILLION AMERICAN DEPOSITARY SHARES PRICED AT NINETEEN DOLLARS AND TWENTY FOUR CENTS EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY C. S. FIRST BOSTON MABON SECURITIES AND S. G. WARBURG EACH A. D. R. REPRESENTS THREE COMMON SHARES JONES APPAREL GROUP INCORPORATED THREE POINT ONE MILLION COMMON SHARES PRICED AT THIRTY DOLLARS AND FIFTY CENTS EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY NATIONAL HEALTH INVESTORS INCORPORATED FOUR MILLION SHARES OF EIGHT POINT FIVE PERCENT CUMULATIVE CONVERTIBLE PREFERRED STOCK FOR TWENTY FIVE DOLLARS EACH WITH AN ANNUAL DIVIDEND OF TWO POINT ONE TWO FIVE DOLLARS A SHARE ACCORDING TO THE COMPANY HOLDERS OF THE CONVERTIBLE PREFERRED STOCK CAN CONVERT THEIR SHARES TO COMMON STOCK AT ANY TIME AT A PRICE OF TWENTY SEVEN POINT SIX TWO FIVE DOLLARS THE CONVERSION RATIO IS ZERO POINT NINE ZERO FIVE TO ONE ISSUER MAY REDEEM THE PREFERRED STOCK FOR COMMON STOCK BEGINNING DECEMBER THIRTY FIRST NINETEEN NINETY EIGHT IF FOR TWENTY TRADING DAYS WITHIN ANY PERIOD OF THIRTY CONSECUTIVE TRADING DAYS THE CLOSING PRICE OF THE COMMON STOCK EXCEEDS TWENTY SEVEN POINT SIX TWO FIVE DOLLARS A SHARE MANAGING UNDERWRITERS ARE NATWEST SECURITIES LIMITED DEAN WITTER REYNOLDS INCORPORATED DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION SMITH BARNEY SHEARSON INCORPORATED J. C. BRADFORD AND COMPANY AND EQUITABLE SECURITIES CORPORATION WESTERN NATIONAL CORPORATION THIRTY FOUR POINT THREE MILLION SHARES PRICED AT TWELVE DOLLARS EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY ACCORDING TO SELLING SHAREHOLDER CONSECO INCORPORATED HEALTHCARE REALTY TRUST INCORPORATED SIX POINT TWO MILLION COMMON SHARES PRICED AT TWENTY ONE POINT THREE SEVEN FIVE DOLLARS EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION SUMMIT PROPERTIES INCORPORATED INITIAL OFFERING OF TEN MILLION COMMON SHARES PRICED AT NINETEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY AND COMPANY BOSTON EIGHTY FIVE MILLION DOLLARS OF REFUNDING GENERAL OBLIGATION BONDS WITH YIELDS FROM TWO POINT FOUR PERCENT IN JULY TO FIVE POINT ONE FIVE PERCENT IN TWO THOUSAND ELEVEN THROUGH A MERRILL LYNCH AND COMPANY GROUP THE BONDS ARE INSURED BY AMBAC INDEMNITY CORPORATION AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. NEW MEXICO EDUCATIONAL ASSISTANCE FOUNDATION ONE HUNDRED FIFTY MILLION DOLLARS OF NINETEEN NINETY FOUR SERIES TWO AND NINETEEN NINETY FIVE SERIES THREE STUDENT LOAN PURCHASE BONDS PRICED BY A SMITH BARNEY SHEARSON INCORPORATED GROUP THE OFFERING INCLUDES SIXTY FOUR POINT SEVEN MILLION DOLLARS OF SENIOR NINETEEN NINETY FOUR SERIES TWO A BONDS PRICED TO YIELD FROM THREE POINT NINE PERCENT IN NINETEEN NINETY SIX TO FIVE POINT FIVE FIVE PERCENT IN TWO THOUSAND EIGHT THE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX AND HAVE A TRIPLE A RATING FROM MOODY'S THE SEVEN POINT THREE MILLION DOLLARS OF FIRST SUBORDINATE NINETEEN NINETY FOUR SERIES TWO B. BONDS ARE FIVE POINT SEVEN FIVES PRICED AT PAR TO YIELD FIVE POINT SEVEN FIVE PERCENT DECEMBER FIRST TWO THOUSAND EIGHT THEY ARE SUBJECT TO THE ALTENATIVE MINIMUM TAX AND HAVE A SINGLE A RATING FROM MOODY'S THE THREE MILLION DOLLARS OF SECOND SUBORDINATE NINETEEN NINETY FOUR SERIES TWO C. BONDS ARE SIXES PRICED AT PAR TO YIELD SIX PERCENT DECEMBER FIRST TWO THOUSAND EIGHT THESE BONDS SUBJECT TO THE ALTERNATIVE MINIMUM TAX HAVEN'T BEEN RATED THE FIFTY EIGHT POINT FIVE MILLION DOLLARS OF SENIOR NINETEEN NINETY FIVE SERIES THREE A ONE BONDS ARE PRICED TO YIELD FROM FIVE POINT FOUR PERCENT IN TWO THOUSAND ONE TO FIVE POINT NINE PERCENT IN TWO THOUSAND EIGHT AND TWO THOUSAND NINE THEY ARE SUBJECT TO THE ALTERNATIVE MINIMUM TAX AND HAVE A TRIPLE A RATING FROM MOODY'S THE FIVE POINT THREE MILLION DOLLARS OF SENIOR NINETEEN NINETY FIVE SERIES THREE A TWO BONDS ARE FIVE POINT SIXES PRICED AT PAR TO YIELD FIVE POINT SIX PERCENT DECEMBER FIRST TWO THOUSAND SIX THEY AREN'T SUBJECT TO THE ALTERNATIVE MINIMUM TAX AND HAVE A TRIPLE A RATING FROM MOODY'S THE ELEVEN POINT TWO MILLION DOLLARS OF FIRST SUBORDINATE NINETEEN NINETY FIVE SERIES THREE B. BONDS ARE SIXES PRICED AT PAR TO YIELD SIX PERCENT ON DECEMBER FIRST TWO THOUSAND NINE THEY ARE SUBJECT TO THE ALTERNATIVE MINIMUM TAX AND HAVE A SINGLE A RATING FROM MOODY'S FEDERAL NATIONAL MORTGAGE ASSOCIATION FIVE HUNDRED FORTY FIVE MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY AND COMPANY THE OFFERING SERIES NINETEEN NINETY FOUR TO FORTY TWO IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT SIX PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY NINE MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION ONE HUNDRED SIXTY TWO POINT FIVE MILLION DOLLARS OF REMIC SECURITIES OFFERED BY BLAYLOCK AND PARTNERS L. P. THE OFFERING SERIES NINETEEN NINETY FOUR TO THIRTY FIVE IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT SIX FIVE PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS PEOPLE'S BANK TWO HUNDRED MILLION DOLLARS OF ASSET BACKED CERTIFICATES PRICED AS FIVE POINT ONES AT NINETY NINE POINT NINE SIX EIGHT SEVEN FIVE TO YIELD FIVE POINT ONE SIX SIX PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE YIELD OF THE ISSUE PEOPLE'S BANK CREDIT CARD MASTER TRUST NINETEEN NINETY FOUR TO ONE IS THIRTY FIVE BASIS POINTS ABOVE THE TREASURY'S WHEN ISSUED THREE YEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF THREE YEARS AND WERE SOLD BY UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY THE CERTIFICATES BACKED BY CREDITCARD RECEIVABLES WERE RATED TRIPLE A BY MOODY'S AND S. AND P. BASED ON A TWELVE POINT FIVE PERCENT LAYER OF CREDIT SUPPORT THE ENHANCEMENT CONSISTED OF A NINE POINT FIVE PERCENT INSURANCE WRAP PROVIDED BY THE FINANCIAL GUARANTY INSURANCE COMPANY AND A THREE PERCENT CASH COLLATERAL ACCOUNT UNITED COMPANIES FINANCIAL CORPORATION ONE HUNDRED SEVENTY EIGHT POINT SEVEN MILLION DOLLARS OF HOME EQUITY LOAN ASSET BACKED CERTIFICATES PRICED IN SIX PARTS BY PRUDENTIAL SECURITIES INCORPORATED ACCORDING TO M. C. M. CORPORATEWATCH THE CERTIFICATES WERE RATED TRIPLE A BASED ON A ONE HUNDRED PERCENT INSURANCE WRAP PROVIDED BY THE FINANCIAL GUARANTY INSURANCE COMPANY THE SEVENTY THREE POINT ONE MILLION DOLLARS OF CLASS A ONE CERTIFICATES WAS PRICED AS FOUR POINT EIGHT TWO FIVE PERCENT AT ONE HUNDRED POINT ONE EIGHT SEVEN FIVE TO YIELD FOUR POINT FIVE FIVE PERCENT A SIXTY BASIS POINT SPREAD ABOVE THE TREASURY'S ONE YEAR BILL THE CERTIFICATES HAVE AN AVERAGE LIFE OF ONE YEAR THE FORTY ONE POINT TWO SEVEN MILLION DOLLARS OF CLASS A TWO CERTIFICATES WAS PRICED AS FIVE POINT FIVE TWO FIVES AT ONE HUNDRED POINT ONE FIVE SIX TWO FIVE TO YIELD FIVE POINT FOUR SEVEN NINE PERCENT A SIXTY FIVE BASIS POINT SPREAD ABOVE THE TREASURY'S THREE YEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF THREE POINT ONE FIVE YEARS THE THIRTY FOUR POINT FOUR MILLION DOLLARS OF CLASS A THREE CERTIFICATES WAS PRICED AS SIX POINT ONE TWOS AT ONE HUNDRED POINT ONE TWO FIVE TO YIELD SIX POINT ONE PERCENT A SIXTY FIVE BASIS POINT SPREAD ABOVE THE INTERPOLATED FIVE POINT NINE YEAR TREASURY THE CERTIFICATES HAVE AN AVERAGE LIFE OF FIVE POINT NINE YEARS THE THIRTEEN POINT NINE MILLION DOLLARS OF CLASS A FOUR CERTIFICATES WAS PRICED AS SIX POINT SEVEN SEVEN NINES AT ONE HUNDRED POINT ONE TWO FIVE TO YIELD SIX POINT SEVEN TWO FIVE PERCENT AN EIGHTY FIVE BASIS POINT SPREAD ABOVE THE WHEN ISSUED TEN YEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF TEN POINT ONE YEARS THE TWO POINT THREE MILLION DOLLARS OF CLASS A FIVE CERTIFICATES WAS PRICED AS SEVEN POINT TWO SEVENS AT ONE HUNDRED POINT ONE FIVE SIX TWO FIVE TO YIELD SEVEN POINT TWO PERCENT AN EIGHTY TWO BASIS POINT SPREAD ABOVE THE TREASURY'S THIRTY YEAR BOND THE CERTIFICATES HAVE AN AVERAGE LIFE OF SIXTEEN POINT ONE YEARS THE THIRTEEN POINT SEVEN FOUR MILLION DOLLARS OF CLASS A SIX FLOATING RATE NOTES WAS PRICED AT PAR TO FLOAT THIRTY SEVEN POINT FIVE BASIS POINTS ABOVE THE LONDON INTERBANK OFFERED RATE TO A TWELVE PERCENT CAP BANK IN LIECHTENSTEIN FINANCE LIECHTENSTEIN PARENT ONE HUNDRED MILLION SWISS FRANCS OF FIXED AND FLOATING RATE PUBLIC BONDS DUE MARCH TWENTY FOURTH TWO THOUSAND PRICED AT ONE HUNDRED POINT FIVE VIA SWISS BANK CORPORATION COUPON FOUR PERCENT YEARS ONE AND TWO THEREAFTER AT SIX MONTH SWISS FRANC LIBOR LESS ZERO POINT ONE FIVE POINT BANK NEDERLANDSE GEMEENTEN N. V. DUTCH AGENCY ONE HUNDRED FIFTY MILLION DOLLARS OF FIVE PERCENT EUROBONDS DUE MARCH TENTH NINETEEN NINETY SEVEN AT ISSUE PRICE ONE HUNDRED ONE POINT ONE ONE SEVEN FIVE VIA GOLDMAN SACHS INTERNATIONAL LIMITED REOFFERED AT NINETY NINE POINT NINE THREE TO YIELD FIVE POINT OH THREE PERCENT A MARGIN OF THIRTEEN POINT FIVE BASIS POINTS ABOVE COMPARABLE U. S. TREASURY FEES ONE POINT THREE SEVEN FIVE COMPANHIA BRASILEIRA DE PETROLEO IPIRANGA S. A. BRAZIL EIGHTY MILLION DOLLARS OF EUROBONDS DUE FEBRUARY TWENTY SECOND TWO THOUSAND TWO AT ISSUE AND REOFFER PRICE NINETY NINE POINT SIX VIA J. P. MORGAN SECURITIES LIMITED SEMIANNUAL COUPON EIGHT POINT SIX TWO FIVE PERCENT FIRST THREE YEARS TO YIELD SPREAD OF THREE HUNDRED NINETY FIVE BASIS POINTS OVER INTERPOLATED FIVE YEAR TO TEN YEAR U. S. TREASURY YIELD CURVE THEREAFTER COUPON TEN POINT SIX TWO FIVE PERCENT TO YIELD FOUR HUNDRED SIX BASIS POINTS OVER SAME YIELD CURVE YIELD TO MATURITY NINE POINT SEVEN SEVEN PERCENT CALLABLE FEBRUARY TWENTY FIFTH NINETEEN NINETY SEVEN AT PAR TO YIELD SPREAD OF FOUR HUNDRED SIX BASIS POINTS OVER WHEN ISSUED THREE YEAR TREASURY PUT OPTION ON SAME DATE EXERCISABLE AT SPREAD OF THREE HUNDRED NINETY FIVE BASIS POINTS OVER WHEN ISSUED THREE YEAR U. S. TREASURY FEES ONE EUROPEAN INVESTMENT BANK SUPRANATIONAL FIFTY BILLION SPANISH PESETAS OF SEVEN POINT FIVE PERCENT MATADOR BONDS DUE MARCH THIRD TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED ONE POINT ONE TWO FIVE VIA BANCO SANTANDER DE NEGOCIOS BANCO DE NEGOCIOS ARGENTARIA S. A. AND BANCO ESPANOL DE CREDITO S. A. BONDS YIELD SEVEN POINT FIVE NINE FIVE PERCENT AT NINETY NINE POINT FIVE CO MANAGERS' BREAK EVEN PRICE FEES ONE POINT SEVEN FIVE LESS ZERO POINT ONE TWO FIVE FOR LEAD MANAGER GENERAL ELECTRIC CAPITAL CORPORATION U. S. PARENT ONE HUNDRED FIFTY MILLION POUNDS OF SIX POINT TWO FIVE PERCENT EUROBONDS DUE DECEMBER SEVENTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED ONE POINT FOUR EIGHT FIVE POUNDS VIA DEUTSCHE BANK A. G. LONDON REOFFERED AT NINETY NINE POUNDS AND EIGHTY SIX PENCE TO YIELD SIX POINT TWO SEVEN PERCENT A MARGIN OF NINETEEN BASIS POINTS ABOVE COMPARABLE U. K. GILT FEES ONE POINT EIGHT SEVEN FIVE GIROCREDIT BANK A. G. DER SPARKASSEN AUSTRIA ONE HUNDRED MILLION DOLLARS OF SUBORDINATED FLOATING RATE NOTES DUE MARCH EIGHTH TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE NINETY NINE POINT EIGHT SEVEN FIVE VIA MERRILL LYNCH INTERNATIONAL LIMITED PAYABLE SEMIANNUALLY AT SIX MONTH DOLLAR LIBOR LESS ZERO POINT ONE TWO FIVE POINT MINIMUM COUPON FIVE POINT ONE TWO FIVE PERCENT FEES ZERO POINT FIVE KANTO BIOMEDICAL LABORATORY COMPANY JAPAN SIXTY FIVE MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE ZERO POINT SIX TWO FIVE PERCENT NOTES DUE MAY THIRTY FIRST NINETEEN NINETY EIGHT AT PAR VIA DAIWA BANK SCHWEIZ A. G. NOTES CONVERTIBLE MARCH FOURTEENTH TO MAY TWENTY FIRST NINETEEN NINETY EIGHT AT EXPECTED TWO POINT FIVE PERCENT PREMIUM TERMS FIXED MONDAY FEES ONE POINT SIX TWO FIVE LONDON AND MANCHESTER GROUP P. L. C. U. K. FIFTY MILLION POUNDS OF EIGHT POINT ONE TWO FIVE PERCENT EUROBONDS DUE NOVEMBER THIRTIETH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT SIX ONE NINE POUNDS VIA S. G. WARBURG SECURITIES LIMITED REOFFERED AT NINETY NINE POINT ONE ONE NINE POUNDS TO YIELD EIGHT POINT TWO FOUR PERCENT A MARGIN OF ONE HUNDRED FIFTY BASIS POINTS OVER COMPARABLE U. K. GILT FEES TWO SALOMON INCORPORATED U. S. ONE HUNDRED FIFTY MILLION OF FLOATING RATE EURONOTES DUE MARCH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT THREE FIVE FIVE VIA SALOMON BROTHERS INTERNATIONAL LIMITED PAYABLE QUARTERLY AT FORTY BASIS POINTS OVER THREE MONTH POUND LIBOR FEES ZERO POINT TWO FIVE SOCIETE GENERALE ACCEPTANCE N. V. FRENCH PARENT EIGHT HUNDRED MILLION FRENCH FRANCS OF EUROBONDS DUE JUNE FIRST TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE NINETY NINE POINT SEVEN VIA SOCIETE GENERALE COUPON SIX POINT FIVE PERCENT PAYABLE DECEMBER FIRST THEREAFTER PAYABLE QUARTERLY AT FIFTEEN POINT TWO PERCENT LESS TOTAL OF ONE POINT EIGHT FIVE TIMES THREE MONTH PARIS INTERBANK OFFERED RATE MINIMUM ZERO GUARANTOR SOCIETE GENERALE FEES ZERO POINT FIVE SWEDISH EXPORT CREDIT LIMITED SWEDISH AGENCY THREE HUNDRED MILLION DOLLARS OF FIVE PERCENT EUROBONDS DUE MARCH TENTH NINETEEN NINETY SEVEN AT ISSUE PRICE ONE HUNDRED ONE POINT ONE EIGHT SEVEN FIVE VIA KIDDER PEABODY SECURITIES LIMITED REOFFERED AT PAR TO YIELD FIVE PERCENT A MARGIN OF TEN BASIS POINTS OVER COMPARABLE U. S. TREASURY FEES ONE POINT THREE SEVEN FIVE QUOTE JANUARY QUOTE THE CALENDAR OVER MY COMPUTER SAYS AND AT THE TOP IN GREEN INK QUOTE WOMEN QUOTE THIS PENNED QUESTION TO MYSELF REPRESENTS THE TINY BYPRODUCT OF A DEBATE RAGING IN MAGAZINES AND OPINION PAGES LIKE THIS ONE LATE LAST YEAR THE NEW REPUBLIC ITSELF NO BASTION OF TOWERING FEMALES PUBLISHED A COVER STORY BY WRITER NAOMI WOLF ARGUING THAT MEN ALONE CONTROL THE WORLD OF OPINION MAKING MS. WOLF'S ARGUMENT RELIED ON A STUDY THAT SHOWED WOMEN WRITE A MERE TEN PERCENT TO TWENTY PERCENT OF OP ED ARTICLES THE GROUP THAT PRODUCED THE STUDY WOMEN MEN AND MEDIA WAS RUMORED TO BE PLANNING ANOTHER THIS TIME FOR JANUARY SO THE QUESTION HERE WAS SHOULD WE MAKE AN EFFORT THIS MONTH TO LARD OUR PAGE WITH WOMEN WRITERS NO IS THE SHORT ANSWER THE MAIN REASON OF COURSE IS THAT OP ED PAGES OR MAGAZINES AREN'T AFFIRMATIVE ACTION SCORE CARDS WHEN AN ARTICLE COMES INTO A PAPER EDITORS MEN AND WOMEN ASK QUESTIONS ABOUT IT IS THE ARTICLE TIMELY IS IT WELL WRITTEN ON A PAGE LIKE OURS WHICH STANDS FOR INDIVIDUAL LIBERTY WE MAY ASK WHAT DOES THIS SAY ABOUT FREE MARKETS RARELY IS OUR QUESTION IS THIS BY A WOMAN WHAT ELSE IS WEIRD ABOUT THIS DISCUSSION WELL FIRST OF ALL ITS TERMS ARE WRONG MS. WOLF WRITES THAT THE AGORA OF OPINION IS LARGELY A MEN'S CLUB YET A NUMBER OF WOMEN ARE REGULARS IN WHAT MS. WOLF HAS CALLED THE WHITE BOY ROLODEX ONE IS COLUMNIST MONA CHAREN ANOTHER IS LORETTA MCLOUGHLIN UNTIL RECENTLY EDITORIAL PAGE EDITOR OF THE BOSTON GLOBE ANNE APPLEBAUM IS FOREIGN EDITOR OF BRITAIN'S MOST INFLUENTIAL OPINION MAGAZINE THE SPECTATOR TWO WASHINGTON VOICES ARE NINA TOTENBERG AND COKIE ROBERTS MEG GREENFIELD RUNS THE WASHINGTON POST'S EDITORIAL PAGE THE JOURNAL'S EDITORIAL PAGE PRINTS A SLIGHTLY GREATER SHARE OF ARTICLES SUBMITTED BY WOMEN THAN BY MEN THE ASSISTANT EDITOR HERE IS MELANIE KIRKPATRICK DOROTHY RABINOWITZ AND MANUELA HOELTERHOFF ALSO WRITE WHY THEN THOSE PERCENTAGES ONE REASON IS THAT AGE THANK HEAVEN STILL HAS SOME AUTHORITY AND MANY OLDER WOMEN UNFORTUNATELY DIDN'T GET THE EXPERIENCE THAT YIELDS A PUNDIT ANOTHER IS ONE THAT MIGHT FIT IN WITH MS. WOLF'S ARGUMENT ALTHOUGH NOT AS SHE MEANS IT TO WOMEN ARE CIVILIZERS THEY CLICK THE REMOTE CONTROL PAST THE SCREAMERS ON QUOTE CROSSFIRE QUOTE BECAUSE THEY FIND THEM UNDIGNIFIED THE OP ED GAME ALTHOUGH IT TAKES PLACE IN THE TAMER PRINT WORLD CAN ALSO BE BRUTAL NOT EVERYONE LONGS TO SCRAMBLE LIKE A PIT BULL WITH HIS OR HER FELLOW OPINION MAKERS OVER A PIECE OF WEEK OLD MEAT UNFORTUNATELY SAYS MS. WOLF YOU CAN'T WRITE STRONG ASSERTIVE PROSE IF YOU ARE TOO ANXIOUS ABOUT PRESERVING CONSENSUS HERE WE GET TO THE NUB OF THE PROBLEM WHOSE CONSENSUS THE CONSENSUS OF COURSE OF SECOND GENERATION FEMINISTS LIKE MS. WOLF YET THIS IS A COTERIE A SMALL GROUP WHO ARE THE RECENT PRODUCT OF HUMANITIES DEPARTMENTS OF FANCY UNIVERSITIES MS. WOLF AND I ATTENDED THE SAME COLLEGE IN THE SAME YEARS SO HERE I CAN SPEAK WITH AUTHORITY THE SAD FACT ABOUT THESE WOMEN IS THAT THEIR CONSENSUS IS NOT ALWAYS INTERESTING WHAT EXACTLY DOES THIS NARROW GROUP WRITE ABOUT THEY WRITE ABOUT SEX ABOUT THEIR WEIGHT ABOUT THEMSELVES AS VICTIMS PASSIVE BUT INSTITUTIONALIZED DISCRIMINATION IN MS. WOLF'S WORDS THEY DO SO BECAUSE THAT IS WHAT THAT LIMITED CONSENSUS TELLS THEM IS THEIR ISSUE PRE CHILDBEARING WOMANHOOD PER SE IS NOT HOWEVER THE NUMBER ONE ISSUE FOR A LARGE GROUP A GROUP INCLUDING ALL AGES AND BOTH SEXES FOR THOSE PEOPLE WE DO PRINT ARTICLES ARTICLES THAT INDEED OCCASIONALLY HAVE FEMALE AUTHORS ON HEALTH CARE ELIZABETH MCCAUGHEY ON NORTH KOREA'S BOMB HEATHER WILSON ON JUVENILE DELINQUENTS WITH SHOTGUNS RITA KRAMER WOLF STYLE REVOLUTIONARY ZEAL SPITS ON SUCH WOMEN'S ACCOMPLISHMENTS FOR IT VIEWS THEM AS TRAPPED IN A CULTURAL CAGE DOMINATED BY MEN NEVER MIND G. A. T. T. OR FOREIGN POLICY DOCTRINES OR PROPERTY PRICES OR WHATEVER ELSE JOURNALISTS WHO HAPPEN TO BE WOMEN CONCERN THEMSELVES WITH WRITES A WRY ANNE APPLEBAUM IN A RESPONSE TO MS. WOLF WE COULD ALL CALL OURSELVES FEMINISTS ONE SEEMS TO NEED NO CREDENTIALS AND THEN EARN LOTS OF MONEY THE MOST CONCRETE DAMAGE OF WORK LIKE MS. WOLF'S IS THE QUOTA IZATION OF NEWSPAPERS GROUPS LIKE WOMEN MEN AND MEDIA QUANTIFY REFERENCES TO WOMEN IN PAPERS AND FEMALE BYLINES AND THEN USE THOSE FIGURES TO THREATEN THE RESULT IS LOWER QUALITY ONE OP ED EDITOR FROM ANOTHER NEWSPAPER TOLD ME THAT HE GOT A WATCHDOG CALL FROM A COLLEAGUE WARNING THE PAGE HAD TOO FEW FEMALE BYLINES THE PAGE INSTANTLY INSTITUTED A THIRTY THREE PERCENT QUOTA BEING SURVEILLED IS UNPLEASANT HE SAID WORSE THOUGH IS QUOTE THAT THE CONTENT DOESN'T MATTER AT ALL BUT SIMPLY THE GENDER OF THE BYLINE QUOTE LESS DIRECT BUT AS PAINFUL IS THE DISSERVICE NEW REVOLUTIONARY FEMINISTS DO TO THE OLDER WOMEN WHO WENT BEFORE US THESE WERE THE REAL PIONEERS WOMEN WHO FOUGHT PALPABLE INJUSTICE IN THE DAYS WHEN A WOMAN'S PLACE REALLY WAS WIPING GRINDS AT THE COFFEE MACHINE MS. WOLF DISDAINS JEANE KIRKPATRICK WHOSE BATTLE AT THE U. N. AGAINST SEXIST COMMUNISTS AND THIRD WORLD JERKS HELPED END THE COLD WAR THE AMBASSADOR'S CRIME WRITING IN AN OBJECTIVE NO UTERUS STYLE THAT IS UNINFLECTED BY THE EXPERIENCE OF THE FEMALE BODY THE UNHAPPY CONSEQUENCE OF ATTACKS ON NO UTERUS WRITING IS A NEW GHETTO IZATION THUS THE OLD SEXIST NEW YORK TIMES EDITORIAL PAGE FEATURED FOREIGN AFFAIRS WRITER FLORA LEWIS THE NEW SENSITIVE TIMES GIVES US ANNA QUINDLEN A DOYENNE OF MATERNAL PROSE BY MS. WOLF'S OWN DESCRIPTION IS THIS PROGRESS THE TRUTH THOUGH IS THAT NEWSPAPERS WILL PRINT NO UTERUS ARTICLES ALL THE TIME BECAUSE THEY CONTAIN FACTS BECAUSE THEY EXCITE BECAUSE THEY ARE NOT MUSINGLY SOLIPSISTIC WELL RATTLE THE BARS ON YOUR CAGE NAOMI MIGHT SAY WELL I MIGHT RESPOND RATTLE THE BARS ON YOURS MISS SHLAES THE JOURNAL'S OP ED EDITOR HOPES THIS ARTICLE WILL FILL SOME WOMEN QUOTAS JOHN MOTLEY IS SPEAKING AT THE HOLIDAY INN CROWNE PLAZA BALLROOM HERE BEFORE TWO HUNDRED SMALL BUSINESS OWNERS TRYING TO FIRE THEM UP FOR AN ASSAULT ON PRESIDENT CLINTON'S HEALTH CARE REFORM PLAN HIS ENTREATY REPLETE WITH WARNINGS ABOUT QUOTE PAYROLL TAXES QUOTE AND QUOTE BUREAUCRATS WITH TREMENDOUS POWER QUOTE EVOKES ONLY A RESTLESS MUMBLING THEN OUT OF NOWHERE A SPARK HITS DRY KINDLING I HAVEN'T HEARD THE WORD SOCIALISM USED IN ALL THIS OFFERS NANCY ROGALSKI PRESIDENT OF R. AND C. MANUFACTURING INCORPORATED A LOCAL SHEET METAL AND MACHINE TOOL FIRM WE SHOULD USE IT MAYBE IT WOULD RILE PEOPLE UP SURE ENOUGH THE WORD QUICKLY BEGINS TO ECHO FROM TABLE TO TABLE SOCIALISM SOCIALISM ENERGIZED MR. MOTLEY CHIEF LOBBYIST OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS LEANS HIS BURLY FRAME CLOSER TO THE GROUP DO I BELIEVE IT'S SOCIALISM DO I AGREE WITH ALL THE OTHER THINGS YOU'RE SAYING HELL YEAH I ABSOLUTELY DO QUOTE HE SAYS BUT IF I SAY THOSE THINGS REPORTERS WOULD NEVER WRITE IT YOU'RE HELPING ME EXPRESS VIEWS I CAN'T GET IN THE MEDIA BY THE TIME THE GATHERING BREAKS UP MANY OF THE ENTREPRENEURS ARE EAGER TO HELP MR. MOTLEY IN HIS STRUGGLE AGAINST THE CLINTON HEALTH CARE PLAN LEAPING TO HIS FEET ONE SMALL BUSINESS OWNER DECLARES WHEN YOU GET TO WHERE THEY DON'T BELIEVE YOU JUST CALL I'LL GO DOWN TO WHEREVER I HAVE TO I'LL SEND A HANDWRITTEN LETTER ONCE AGAIN JOHN MOTLEY IS MOLDING A CONTINGENT OF DRY CLEANERS HOME BUILDERS CORNER STORE OPERATORS AND OTHER BUSINESS OWNERS INTO A LOBBYING FORCE FORMIDABLE ENOUGH TO SEND MANY A LAWMAKER SCRAMBLING FOR COVER WITH SOME SIX HUNDRED SEVEN THOUSAND MEMBERS STRETCHED ACROSS EVERY CONGRESSIONAL DISTRICT IN THE COUNTRY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS HAS MADE ITSELF INTO ONE OF THE PRE EMINENT GRASSROOTS LOBBYING POWERS IN WASHINGTON WHEN YOU WALK MAIN STREET AS MOST MEMBERS OF CONGRESS DO ALMOST EVERY BUSINESS HAS AN N. F. I. B. STICKER ON THE DOOR SAYS REPRESENTATIVE MIKE SYNAR AN OKLAHOMA DEMOCRAT MR. MOTLEY CALLS ON THIS LEGION TO WRITE LETTERS MAKE PHONE CALLS AND VISIT CAPITOL HILL TO PRESSURE LAWMAKERS ABOUT FORTY THOUSAND N. F. I. B. MEMBERS ARE PARTICULARLY ACTIVE A CORE GROUP KNOWN AS THE QUOTE GUARDIANS QUOTE SOME LOBBYISTS MAKE THEIR REPUTATION BECAUSE THEY KNOW DANNY ROSTENKOWSKI PERSONALLY OR THEY PLAY TENNIS WITH GEORGE MITCHELL SAYS BEER INDUSTRY LOBBYIST DAVID REHR REFERRING TO THE HOUSE WAYS AND MEANS CHAIRMAN AND THE SENATE MAJORITY LEADER JOHN'S NOT LIKE THAT HE GETS HIS STRENGTH FROM BEING ABLE TO GET TENS OF THOUSANDS OF PEOPLE ACROSS THE COUNTRY TO DO SOMETHING FOR HIM SHARP TONGUED AND ENERGETIC ENOUGH TO PLAY TENNIS UNTIL ELEVEN P. M. ONE NIGHT AND THEN THREE MORE SETS AT SIX THE NEXT MORNING THE FORTY NINE YEAR OLD MR. MOTLEY HAS COME TO PERSONIFY THE FEDERATION HE TOILS FOR HE PRACTICALLY HAS 'N. F. I. B. STAMPED ON HIS HINDQUARTERS SAYS FORMER REPRESENTATIVE MIKE MCKEVITT A COLORADO REPUBLICAN WHO ONCE RAN THE GROUP'S LOBBYING OPERATION THE N. F. I. B. IS THE NATION'S BIGGEST SMALL BUSINESS GROUP AND THOSE WHO DON'T SHARE ITS VIEWS FEEL MR. MOTLEY'S WRATH I DON'T TAKE KINDLY TO PEOPLE WHO SAY THEY'RE OUR FRIENDS AND THEN VOTE AGAINST ME HE SAYS MR. MOTLEY SPEARHEADED INTENSE N. F. I. B. OPPOSITION THAT HELPED DEFEAT TWO CHAIRMEN OF THE SENATE SMALL BUSINESS COMMITTEE IN THEIR RE ELECTION BIDS REPUBLICAN LOWELL WEICKER NOW CONNECTICUT'S GOVERNOR IN NINETEEN EIGHTY EIGHT AND WISCONSIN DEMOCRAT GAYLORD NELSON IN NINETEEN EIGHTY FOUR YEARS AGO THE GROUP HELPED WIN REPEAL OF A TAX LAW KNOWN AS SECTION EIGHTY NINE THAT FORCED COMPANIES TO PROVE THEY DISTRIBUTED EMPLOYEE BENEFITS FAIRLY NOW MR. MOTLEY IS TAKING CHARGE OF HIS GROUP'S NEWEST PRIORITY KILLING THE CLINTON PROPOSAL THAT WOULD REQUIRE ALL BUSINESSES TO HELP PAY FOR THEIR EMPLOYEES' MEDICAL COVERAGE THE N. F. I. B. CONTENDS THAT THE SO CALLED EMPLOYER MANDATE WOULD DEVASTATE MANY SMALL FIRMS AND COST ONE POINT FIVE MILLION JOBS MR. MOTLEY SAYS IT IS LIKE QUOTE TYING SMALL EMPLOYERS TO A SLED PUSHING THEM OFF A CLIFF AND HOPING THEY'RE UPRIGHT WHEN THEY REACH THE BOTTOM QUOTE THE MEETING IN PHOENIX IS THE FIRST OF MORE THAN A DOZEN SCHEDULED TO SHARPEN THE N. F. I. B. OFFENSIVE WHEN CONGRESS TAKES UP HEALTH CARE AFTER RECONVENING JANUARY TWENTY FIFTH MR. MOTLEY ALSO WILL BRING SOME SMALL BUSINESS OWNERS TO WASHINGTON TO LOBBY HE HAS DESIGNATED SOME OF THE MOST DEDICATED FEDERATION MEMBERS AS A HEALTH ACTION RESPONSE TEAM SUCH SMALL BUSINESS OPPOSITION IS A HUGE THREAT TO PASSAGE OF AN EMPLOYER MANDATE THE FINANCING LINCHPIN OF THE CLINTON PLAN AFTER MR. MOTLEY ATTACKED THE PLAN IN A TALK TO GOVERNORS IN TULSA OKLAHOMA LAST SEPTEMBER PRESIDENT CLINTON WAS SO IRKED THAT IN HIS SUBSEQUENT SPEECH HE CHALLENGED MR. MOTLEY BY NAME MR. MOTLEY IS NOT TO BE TAKEN FOR GRANTED SAYS JEFF ELLER A COMMUNICATIONS STRATEGIST FOR THE CLINTON HEALTH CARE TEAM BUT HE SAYS THE ADMINISTRATION HOPES TO GET AROUND HIM BY SHOWING BUSINESS OWNERS HOW THEY WOULD BENEFIT UNDER THE CLINTON PLAN THAT WON'T BE EASY MANY SMALL BUSINESS PEOPLE REALLY ARE AFRAID OF NEW COSTS AND REGULATIONS FOR SMALL BUSINESSES THERE'S INDEED A LOT TO FEAR FROM WASHINGTON SAYS ALLEN NEECE A LOBBYIST WHO WORKS FOR SEVERAL SMALL BUSINESS GROUPS AT THE SAME TIME THE MATERIAL THE N. F. I. B. SENDS ITS MEMBERS CONTAINS SCANT INFORMATION ABOUT THE SUBSIDIES THE CLINTON PLAN WOULD GIVE SMALL FIRMS TO HELP THEM PROVIDE WORKERS WITH HEALTH COVERAGE IN THE EYES OF MR. MOTLEY'S FOES HIS IMPLACABLE POSITION ON THE MANDATE IS SYMPTOMATIC OF A BROADER TENDENCY HE DOES MORE THAN JUST FIGHT AGAINST THOSE GOVERNMENT PROPOSALS THAT SMALL BUSINESS OWNERS SHOULD TRULY BE AFRAID OF HE EAGERLY STOKES THEIR EVERY CONCERN AND THE N. F. I. B. PROFITS IN THE PROCESS JOHN AND HIS BOYS MAKE A LOT OF MONEY BY INCITING A LOT OF FEAR CHARGES REPRESENTATIVE SYNAR WHO HAS CLASHED FREQUENTLY WITH THE LOBBYIST MR. MOTLEY SAYS THAT WE'RE NOT OUT INFLUENCING OUR MEMBERS' OPINIONS THE N. F. I. B. REPRESENTS SMALL BUSINESSES WHOSE SALES AVERAGE THREE HUNDRED THOUSAND DOLLARS A YEAR BUT THE GROUP ITSELF HAS TURNED INTO A BIG BUSINESS DURING MR. MOTLEY'S TWENTY THREE YEAR RISE THROUGH THE GROUP'S RANKS IT NOW PULLS IN ANNUAL REVENUE OF MORE THAN SIXTY MILLION DOLLARS RUNS A POLITICAL ACTION COMMITTEE THAT SPENT SEVEN HUNDRED EIGHTY FIVE THOUSAND DOLLARS ON CAMPAIGN CONTRIBUTIONS AND POLITICAL EDUCATION DURING THE NINETEEN NINETY ONE TO NINETY TWO ELECTION CYCLE AND LEASES A SUITE OF TONY OFFICES IN THE SHADOW OF THE CAPITOL MR. MOTLEY WAS PAID ONE HUNDRED THIRTY EIGHT THOUSAND TEN DOLLARS LAST YEAR ACCORDING TO N. F. I. B. TAX RECORDS NEARLY ALL OF THE N. F. I. B.'S MONEY COMES FROM MEMBERS' DUES WHICH AVERAGE ONE HUNDRED TWENTY FIVE DOLLARS YEARLY MANY CRITICS SEE MR. MOTLEY AS A DIEHARD RIGHT WINGER AND SOME SEE HIM AS A REPUBLICAN FRONT MAN BUT HIS PAST SUGGESTS SOMEONE MUCH HARDER TO LABEL HE COMES FROM A FAMILY OF LONG ISLAND UNION ACTIVISTS AND HE SAYS HE IS A REGISTERED INDEPENDENT AND HAS VOTED FOR PLENTY OF DEMOCRATS QUOTE LOOK I REPRESENT A VERY POLITICALLY CONSERVATIVE GROUP OF PEOPLE QUOTE HE SAYS THEY ARE RISK TAKERS THEY HAVE EVERYTHING THEY OWN AT RISK THEY ARE FISCAL CONSERVATIVES AND SO WE ARE A CONSERVATIVE BUSINESS ORGANIZATION INDEED HARD LINE STANCES ARE NOTHING NEW FOR THE FEDERATION WHICH WAS FOUNDED IN NINETEEN FORTY THREE IN SAN MATEO CALIFORNIA OVER THE YEARS N. F. I. B. REPRESENTATIVES HAVE REACTED STRIDENTLY TO ISSUES RANGING FROM REGULATIONS OF THE LABOR DEPARTMENT IT OPERATES AS THE GESTAPO TO RAISING THE MINIMUM WAGE ANOTHER STEP IN THE DIRECTION OF COMPLETE GOVERNMENT CONTROLS TO THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION OUR MEMBERS ARE ASKING IS THIS STILL AMERICA WHEN HE STARTED AT THE N. F. I. B. MR. MOTLEY NEVER SAW HIMSELF AS A BUSINESS LEADER WHILE STUDYING AMERICAN COLONIAL HISTORY AT GEORGETOWN IN NINETEEN SEVENTY HE JOINED THE FEDERATION HAWKING MEMBERSHIPS DOOR TO DOOR HE SOON DECIDED THAT BEING A SALESMAN WASN'T FOR HIM SO HE HAD LUNCH WITH HIS BOSS WHO MADE HIM AN INTRIGUING OFFER WOULD HE LIKE TO BECOME A LOBBYIST HIS REPLY WHAT'S A LOBBYIST BY THE MID NINETEEN SEVENTIES MR. MOTLEY WAS BUILDING THE BASE OF THE ORGANIZATION'S POWER COMPUTERIZING THE MEMBERSHIP LIST AND TABULATING CONGRESSIONAL VOTING RECORDS THE N. F. I. B. BEGAN GIVING LAWMAKERS WHO FREQUENTLY SUPPORT ITS POSITIONS GUARDIAN OF SMALL BUSINESS AWARDS NOW AN N. F. I. B. VICE PRESIDENT MR. MOTLEY OFTEN WORKS IN HIS WASHINGTON OFFICE DECIDING HOW TO DEPLOY HIS TROOPS WITH A FEW COMPUTER STROKES HE CAN SELECT WHICH MEMBERS TO MARSHAL WITHIN HOURS OF SENDING OUT AN QUOTE ACTION ALERT QUOTE HE CAN HAVE ANY REPRESENTATIVE'S OR SENATOR'S OFFICE INUNDATED WITH PHONE CALLS AND CONSTITUENT LETTERS ALL I NEED IS TWENTY THOUSAND MEMBERS WHO WANT TO BE INVOLVED AND I CAN TURN THIS TOWN INSIDE OUT HE ASSERTS THAT IS JUST WHAT HAPPENED DURING THE YEARS LONG FIGHT OVER FAMILY LEAVE LEGISLATION WHICH THE N. F. I. B. PLAYED A PRIME ROLE IN KILLING DURING THE BUSH ADMINISTRATION MR. MOTLEY SAYS IT WAS AN OVERARCHING CONCERN ABOUT GOVERNMENT MEDDLING THAT SPURRED THE N. F. I. B. TO FIGHT THE BILL REQUIRING FIRMS TO OFFER UNPAID LEAVE SO WORKERS COULD CARE FOR NEWBORNS NEWLY ADOPTED CHILDREN AND SERIOUSLY ILL FAMILY MEMBERS AT ONE POINT N. F. I. B. MEMBERS SENT SENATOR ORRIN HATCH FIVE HUNDRED LETTERS A WEEK SO WORRIED WAS THE GROUP THAT THE UTAH REPUBLICAN MIGHT REVERSE HIS OPPOSITION TO THE BILL IN MISSOURI MEMBERS TOLD SOME FINANCIAL BACKERS OF G. O. P. SENATOR CHRISTOPHER BOND THAT HE WAS WORKING AGAINST THEIR INTERESTS BY PUSHING COMPROMISE LEGISLATION SENATOR BOND TOLD AIDES HE HAD NEVER SEEN SUCH HARDBALL TACTICS DEMOCRATIC REPRESENTATIVE PAT SCHROEDER OF COLORADO SAYS SHE FOUGHT THE N. F. I. B. FOR YEARS OVER FAMILY LEAVE EVEN THOUGH THE LEGISLATION WOULD AFFECT ONLY FIRMS WITH FIFTY OR MORE EMPLOYEES AND THEREFORE SPARED NINETY FIVE PERCENT OF THE MOM AND POP BUSINESSES THAT MAKE UP MR. MOTLEY'S MEMBERSHIP I WENT OVER TO DO A FORUM ON FAMILY LEAVE FOR SMALL BUSINESSES AND EVERYBODY WAS SCREAMING AND YELLING AT ME SHE RECALLS I TOLD THEM IT DIDN'T AFFECT THEM BUT THEY WOULDN'T LISTEN TO ME THEY WERE LISTENING TO HIM DESPITE MR. MOTLEY'S EFFORTS EARLY LAST YEAR CONGRESS PASSED THE BILL AND MR. CLINTON PROMPTLY SIGNED IT INTO LAW THE STRUGGLE WAS A HARBINGER OF COMING N. F. I. B. BATTLES WITH THE NEW ADMINISTRATION BUT MR. MOTLEY SAYS HE DOESN'T PICK THE BATTLES HIMSELF STRESSING THAT HE ABIDES BY ONE RULE BEFORE HE ACTS HE ASKS UNDER HIS DIRECTION THE FEDERATION SPENDS SIX HUNDRED THOUSAND DOLLARS A YEAR TO POLL MEMBERS ON POLICY MATTERS EVERY EIGHT WEEKS IT THEN SENDS THE RESULTS BUSINESS BY BUSINESS TO ALL FIVE HUNDRED THIRTY FIVE CONGRESSIONAL OFFICES LAYING OUT THE VIEWS OF TENS OF THOUSANDS OF ENTREPRENEURS IS ONE OF THE MOST EFFECTIVE WAYS ANYBODY COULD LOBBY SAYS REPRESENTATIVE CHARLES STENHOLM A DEMOCRAT FROM TEXAS YET CRITICS CONTEND MANY OF THE SURVEYS ARE SLANTED FOR INSTANCE IN A BRIEF POLL THE GALLUP ORGANIZATION CONDUCTED FOR THE N. F. I. B. IN SEPTEMBER TO MEASURE MEMBERS' INITIAL GENERAL RESPONSE TO THE HEALTH CARE PLAN EIGHTY FOUR PERCENT OF THOSE QUESTIONED OPPOSED A REQUIREMENT THAT THEY PAY THE BULK OF THE COST OF THEIR WORKERS' HEALTH COVERAGE AMONG THAT EIGHTY FOUR PERCENT ONLY ONE THIRD SAID THEY WOULD LESSEN THEIR OPPOSITION IF THEY GOT A GOVERNMENT SUBSIDY BUT ROBERT BLENDON A POLLING EXPERT AT THE HARVARD SCHOOL OF PUBLIC HEALTH SAYS THE SURVEY DIDN'T GIVE RESPONDENTS ENOUGH DETAIL ON HOW GENEROUS THE SUBSIDIES WOULD BE QUOTE THEY'RE NOT PLAYING FAIR BALL HERE QUOTE SAYS MR. BLENDON WHO REVIEWED THE POLLING MATERIAL FOR THIS NEWSPAPER SMALL BUSINESS PEOPLE DON'T LIKE MANDATES IN GENERAL I AGREE WITH THEM BUT WHEN THOSE BUSINESS OWNERS SEE THE SIZE OF THE SUBSIDY YOU'RE TALKING ABOUT IT CHANGES THEIR MINDS UNDER THE CLINTON PLAN THE SMALLEST LOWEST WAGE FIRMS WOULD SPEND NO MORE THAN THREE POINT FIVE PERCENT OF PAYROLL FOR ALL OF THEIR WORKERS TO RECEIVE GUARANTEED MEDICAL COVERAGE ONCE THE SUBSIDIES ARE FIGURED IN THE RISE IN HEALTH CARE COSTS FOR MANY SMALL FIRMS WOULD BE THE EQUIVALENT OF AN INCREASE IN THE MINIMUM WAGE OF FIFTEEN CENTS TO THIRTY FIVE CENTS AN HOUR DESPITE THE N. F. I. B.'S POLLING MR. ELLER OF THE CLINTON HEALTH CARE TEAM CONTENDS THAT MR. MOTLEY AND THE LEADERSHIP OF THE N. F. I. B. HAVE BECOME VERY OUT OF TOUCH WITH THEIR MEMBERSHIP MR. ELLER SAYS THAT WHEN THE SMALL BUSINESS ADMINISTRATION HELPS OWNERS FIGURE WHAT THEIR MEDICAL COSTS WOULD BE UNDER THE CLINTON PLAN MANY ARE SURPRISED AT HOW WELL THEY WOULD DO THEIR REACTION OFTEN IS I DIDN'T KNOW THAT THE N. F. I. B. DIDN'T TELL ME THAT MR. ELLER SAYS MR. MOTLEY ISN'T BACKING DOWN QUOTE I DON'T CARE WHAT THE SUBSIDY SCHEME IS QUOTE HE SAYS THIS IS THE GOVERNMENT TAKING TOTAL AND COMPLETE CONTROL AND MR. ELLER'S COMMENTS NOTWITHSTANDING IT IS CLEAR THAT MANY OF MR. MOTLEY'S CONSTITUENTS AGREE WITH HIS STANCE I HAVE NO CHOICE BUT TO START CONTACTING CONGRESS SAYS BRIAN PINNEY THE OWNER OF CORPORATE CLEANING INCORPORATED AN ARIZONA OFFICE MAINTENANCE COMPANY THIS THING WOULD RADICALLY CHANGE THE WAY I DO BUSINESS ALTHOUGH MR. MOTLEY'S STRENGTH COMES FROM OUTSIDE THE BELTWAY HE KNOWS HIS WAY AROUND THE INSIDE ON CAPITOL HILL HE IS AS GOOD A VOTE COUNTER AS I'VE EVER SEEN REPRESENTATIVE MCKEVITT SAYS PERHAPS MOST IMPORTANT IN WASHINGTON TERMS HE HAS ACCESS IN JUNE MR. MOTLEY AND N. F. I. B. PRESIDENT JACKSON FARIS WERE USHERED INTO THE OVAL OFFICE FOR A FEW MINUTES WITH MR. CLINTON TO DISCUSS N. F. I. B. OPPOSITION TO THE CLINTON ECONOMIC PLAN MR. MOTLEY ALSO HAS BEEN TRYING TO FORGE ALLIANCES WITH OTHER GROUPS IN NOVEMBER HE MET WITH JAMES TODD EXECUTIVE VICE PRESIDENT OF THE AMERICAN MEDICAL ASSOCIATION WHICH HAD BEEN IN FAVOR OF AN EMPLOYER MANDATE WE DIDN'T WANT TO GO TO WAR WITH THE N. F. I. B. OVER THE MANDATE MR. TODD SAYS IN DECEMBER RESPONDING TO PRESSURE FROM ITS OWN MEMBERSHIP THE A. M. A. ANNOUNCED IT WOULD BE OPEN TO OTHER FINANCING IDEAS MEANTIME THE N. F. I. B. IS THROWING ITS SUPPORT BEHIND ALTERNATIVE HEALTH CARE PLANS INCLUDING THOSE BY DEMOCRATIC REPRESENTATIVE JIM COOPER OF TENNESSEE AND G. O. P. SENATOR JOHN CHAFEE OF RHODE ISLAND THAT DON'T INCLUDE AN EMPLOYER MANDATE MR. MOTLEY WAS SO IMPASSIONED ABOUT A MANDATE THAT EARLIER THIS YEAR HE TURNED DOWN AN INVITATION TO EVEN APPEAR BEFORE HILLARY RODHAM CLINTON'S HEALTH CARE TASK FORCE IN AUGUST NEW YORK REPRESENTATIVE JOHN LAFALCE CHAIRMAN OF THE HOUSE SMALL BUSINESS COMMITTEE FINALLY GOT MR. MOTLEY AND MRS. CLINTON TOGETHER FOR A CHAT IT WAS PLEASANT ENOUGH MR. MOTLEY EVEN RECOMMENDED A COUPLE OF RESTAURANTS TO HER BUT THEY DIDN'T MAKE MUCH HEADWAY ON RESOLVING THEIR SHARP DIFFERENCES WEEKS LATER MR. MOTLEY GOT A SIGNED PHOTOGRAPH FROM THE MEETING SHOWING HIM REPRESENTATIVE LAFALCE AND MRS. CLINTON STANDING HUDDLED TOGETHER HANDS CLASPED AS HE READ THE INSCRIPTION HE COULDN'T HELP BUT BE TAKEN ABACK QUOTE WITH BEST WISHES THAT WE WILL SOLVE THE HEALTH CARE CHALLENGE TOGETHER QUOTE MRS. CLINTON WROTE I THOUGHT I SHOULD VERIFY THE HANDWRITING MR. MOTLEY SAYS I THOUGHT MAYBE LAFALCE WAS PLAYING A JOKE ON ME TOYOTA MOTOR CORPORATION REPORTED A STEEP DECLINE IN EARNINGS FOR ITS FISCAL FIRST HALF BUT MANAGED TO AVOID POSTING ITS FIRST OPERATING LOSS IN DECADES THROUGH SOME AGGRESSIVE COST CUTTING THE RESULTS BATTERED BY THE STRONG YEN AND WEAK DOMESTIC SALES WERE IN LINE WITH ANALYSTS' EXPECTATIONS PRETAX PROFIT SKIDDED FORTY NINE PERCENT TO EIGHTY THREE POINT TWO FOUR BILLION YEN SEVEN HUNDRED SIXTY FIVE POINT FOUR MILLION DOLLARS IN THE SIX MONTHS ENDED DECEMBER THIRTY FIRST FROM ONE HUNDRED SIXTY TWO POINT THREE FOUR BILLION YEN A YEAR EARLIER NET INCOME FELL FORTY SIX PERCENT TO THIRTY NINE POINT FOUR FOUR BILLION YEN OR TEN POINT FIVE NINE YEN A SHARE FROM SEVENTY TWO POINT THREE FOUR BILLION YEN OR NINETEEN POINT FOUR THREE YEN A SHARE SALES WERE DOWN THIRTEEN PERCENT AT THREE POINT NINE EIGHT EIGHT TRILLION YEN FROM FOUR POINT FIVE SIX FOUR TRILLION YEN A YEAR EARLIER THE COMPANY LEFT ITS DIVIDEND UNCHANGED AT NINE YEN A SHARE TOYOTA SAID THE DOWNTURN IN ITS EARNINGS IS EXPECTED TO CONTINUE IN THE SECOND HALF WHICH ENDS JUNE THIRTIETH AMID THE PROLONGED RECESSION IN MAJOR CONSUMING COUNTRIES THE COMPANY'S PRETAX PROFIT FOR THE FULL FISCAL YEAR IS PROJECTED TO SHRINK THIRTY PERCENT FROM A YEAR EARLIER TO TWO HUNDRED BILLION YEN BREAKING DOWN THE SIX MONTH OPERATING RESULTS MASAMI IWASAKI VICE CHAIRMAN SAID THE YEN'S RISE AGAINST THE DOLLAR WAS RESPONSIBLE FOR A DROP OF ROUGHLY ONE HUNDRED BILLION YEN WHILE LOWER SALES RESULTED IN A FALL OF FIFTY BILLION YEN ON THE OTHER HAND THE COMPANY MANAGED TO SAVE SOME ONE HUNDRED ONE POINT ONE BILLION YEN BY CUTTING COSTS AND REDUCING DEPRECIATION EXPENSES LIMITING THE DECREASE IN THE OPERATING PROFIT SMALL COMPANY STOCKS GATHERED STEAM AS THE SESSION UNFOLDED POSTING SHARP GAINS AFTER MOVING UP ONLY MODESTLY MONDAY THE RUSSELL TWO THOUSAND INDEX WHICH TRACKS THE PERFORMANCE OF SMALL CAPITALIZATION ISSUES TRADED ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR EXCHANGES CLIMBED ONE POINT SEVEN ONE OR ZERO POINT SIX FIVE PERCENT TO FINISH AT TWO HUNDRED SIXTY THREE POINT THREE NINE ON MONDAY THE RUSSELL TWO THOUSAND ADDED JUST ZERO POINT ZERO ONE POINT ON FRIDAY IT TUMBLED FIVE POINT NINE POINTS NASDAQ ISSUES SAW ACROSS THE BOARD BUYING THE NASDAQ COMPOSITE INDEX ADDED THREE POINT FIVE POINTS OR ZERO POINT FOUR FIVE PERCENT TO SEVEN HUNDRED EIGHTY TWO POINT SEVEN MOVING STEADILY HIGHER ALL DAY ON MONDAY THE INDEX EDGED UP ONE POINT NINE TWO POINTS FOLLOWING ITS TWENTY POINT FIVE ONE POINT SLIDE FRIDAY THE DOW JONES INDUSTRIAL AVERAGE FELL ZERO POINT TWO NINE POINT TO THREE THOUSAND NINE HUNDRED SIX POINT OH THREE FOLLOWING MONDAY'S THIRTY FIVE POINT GAIN WHICH RECLAIMED SOME OF FRIDAY'S NINETY SIX POINT PLUNGE TRADERS SAID SMALLER ISSUES WERE DUE FOR A BOUNCE YESTERDAY AFTER RISING ONLY SLIGHTLY MONDAY WHILE CYCLICAL ISSUES ENJOYED A MORE DRAMATIC RALLY ECONOMICALLY SENSITIVE ISSUES SLIPPED SLIGHTLY AS BOND PRICES SLUMPED THE BOOK TO BILL RATIO FALLING WITHIN EXPECTATIONS FOR A FLAT TO SLIGHTLY HIGHER READING ROSE TO ONE POINT OH SEVEN FOR JANUARY UP FROM DECEMBER'S ONE POINT OH FOUR TECHNOLOGY ISSUES ALSO ROSE YESTERDAY AFTER SLIDING PRECIPITOUSLY FRIDAY ADVANCING NASDAQ ISSUES LED DECLINERS ONE THOUSAND SIX HUNDRED TWENTY SEVEN TO ONE THOUSAND THREE HUNDRED EIGHTY EIGHT ON NASDAQ NATIONAL MARKET VOLUME OF TWO HUNDRED SIXTY TWO POINT SIX MILLION SHARES DOWN FROM MONDAY'S VOLUME OF THREE HUNDRED TWENTY THREE POINT SEVEN MILLION SHARES TOTAL VOLUME SLIPPED TO THREE HUNDRED NINE POINT NINE MILLION SHARES FROM MONDAY'S THREE HUNDRED SEVENTY MILLION SHARES AMONG TECHNOLOGY GAINERS WAS AMERICA ONLINE WHICH PICKED UP THREE TO SEVENTY THREE AND ONE HALF AFTER SURGING FIVE AND THREE QUARTERS ON MONDAY LATE MONDAY THE VIENNA VIRGINIA PROVIDER OF ONLINE SERVICES SAID IT ENTERED A QUOTE STRATEGIC ALLIANCE QUOTE UNDER WHICH IT WILL OFFER N. B. C. ONLINE OVER ITS SERVICE SIERRA ON LINE OAKHURST CALIFORNIA JUMPED THREE AND THREE EIGHTHS TO TWENTY TWO AND SEVEN EIGHTHS THE COMPANY SAID THE PRELIMINARY RESULTS OF ITS CORE SOFTWARE PUBLISHING BUSINESS SHOW THAT FISCAL THIRD QUARTER REVENUE ROSE TO TWENTY SIX POINT SEVEN MILLION DOLLARS FROM A YEAR EARLIER SEVENTEEN POINT SIX MILLION DOLLARS GENERAL DATACOMM INDUSTRIES A MIDDLEBURY CONNECTICUT COMMUNICATIONS SYSTEMS COMPANY ROSE TWO AND FIVE EIGHTHS TO SIXTEEN ON THE NEW YORK STOCK EXCHANGE SALOMON BROTHERS PUT AN INITIAL BUY ON THE COMPANY'S SHARES SAYING IT IS WELL POSITIONED TO ACHIEVE ABOVE AVERAGE EARNINGS GROWTH THE BROKERAGE FIRM ADDED THAT THE STOCK PRICE DOESN'T FULLY REFLECT GENERAL DATACOMM'S STRONG FUNDAMENTALS AND FAVORABLE LONG TERM OUTLOOK COMPUTER NETWORK TECHNOLOGY SLID ONE AND ONE QUARTER TO NINE THE MAPLE GROVE MINNESOTA NETWORKING PRODUCTS CONCERN SAID ITS FOURTH QUARTER EARNINGS DROPPED TO NINE CENTS A SHARE ON MORE SHARES OUTSTANDING FROM A YEAR EARLIER THIRTEEN CENTS A SHARE ELSEWHERE ON THE EARNINGS FRONT EVERGREEN HEALTHCARE INDIANAPOLIS ADDED ONE AND FIVE EIGHTHS TO TEN AND ONE HALF ON THE BIG BOARD IT REPORTED FISCAL SECOND QUARTER EARNINGS OF TWENTY TWO CENTS A SHARE COMPARED WITH A YEAR EARLIER LOSS OF EIGHTY NINE CENTS A SHARE SWIFT ENERGY HOUSTON JUMPED ONE AND ONE EIGHTH TO ELEVEN AND ONE QUARTER ON THE BIG BOARD AFTER SAYING ITS GAS AND OIL RESERVES ROSE FIFTY THREE PERCENT LAST YEAR TO NINETY BILLION CUBIC FEET OF NATURAL GAS EQUIVALENT ON THE AMERICAN STOCK EXCHANGE REGENCY HEALTH SERVICES GAINED ONE AND FIVE EIGHTHS TO FIFTEEN AND THREE QUARTERS AFTER ALEXANDER BROWN AND SONS ANALYST DEBBIE LAWSON SAID SHE ADDED THE COMPANY TO THE BROKERAGE FIRM'S EMPHASIS LIST MS. LAWSON MAINTAINS HER STRONG BUY RECOMMENDATION ON THE NEWPORT BEACH CALIFORNIA OPERATOR OF SKILLED NURSING FACILITIES EDUCATION ALTERNATIVES FELL FOUR TO TWENTY NINE AND THREE EIGHTHS THE MINNEAPOLIS PROVIDER OF SCHOOL MANAGEMENT AND CONSULTING SERVICES SAID IT WILL CHANGE HOW IT ACCOUNTS FOR REVENUE AND EXPENSES IN CONNECTION WITH ITS LATEST BALTIMORE PUBLIC SCHOOL SYSTEM CONTRACT THE CHANGE WILL LOWER THE REVENUE AND EXPENSES REPORTED BY THE COMPANY ON THE CONTRACT STAODYN FELL ONE AND THIRTEEN THIRTY SECONDS OR TWENTY FIVE PERCENT TO FOUR AND ELEVEN THIRTY SECONDS THE LONGMONT COLORADO DESIGNER OF ELECTROTHERAPEUTIC DEVICES SAID IT RECEIVED A LETTER FROM THE FOOD AND DRUG ADMINISTRATION SUGGESTING THAT A NEW CLINICAL STUDY WOULD BE REQUIRED BEFORE THE F. D. A. WOULD FAVORABLY CONSIDER ITS PREMARKET APPROVAL APPLICATION FOR U. S. MARKETING OF THE COMPANY'S DERMAPULSE WOUND TREATMENT PROGRAM NEW ISSUES MEANWHILE ENJOYED A BANNER DAY WEBCO INDUSTRIES SAND SPRINGS OKLAHOMA CLIMBED TO SIXTEEN ABOVE ITS MONDAY OFFERING PRICE OF FOURTEEN THE MAKER OF CARBONSTEEL AND STAINLESS STEEL TUBING AND PIPE SAID PROCEEDS WILL BE USED TO REPAY DEBT TRISM FORT WORTH TEXAS JUMPED TO SEVENTEEN AND ONE QUARTER FROM ITS OFFERING PRICE OF FOURTEEN AFTER MONDAY'S CLOSE THE TRUCKING FIRM SAID PROCEEDS ARE EXPECTED TO GO TOWARD DEBT REPAYMENT AND THE PURCHASE OF REVENUE EQUIPMENT INTERCEL LANETT ALABAMA ROSE TO NINE AND ONE QUARTER FROM ITS OFFERING PRICE OF EIGHT AND ONE QUARTER AFTER MONDAY'S CLOSE THE PROVIDER OF CELLULAR TELECOMMUNICATIONS SERVICES IN GEORGIA AND ALABAMA SAID IT WILL USE PROCEEDS TO REDUCE DEBT ASSOCIATED WITH ITS MERGER WITH UNITY CELLULAR SYSTEMS SPECTRUM INFORMATION TECHNOLOGIES A WIRELESS COMMUNICATIONS COMPANY HEADQUARTERED IN MANHASSET N. Y. LED THE NASDAQ MOST ACTIVES LIST FOR THE SECOND STRAIGHT SESSION SHARES OF THE COMPANY FINISHED UP FIVE SIXTEENTHS TO TWO AND NINE SIXTEENTHS ON VOLUME OF TEN POINT EIGHT MILLION SHARES UP FROM AVERAGE DAILY VOLUME OF TWO POINT ONE MILLION ON MONDAY SPECTRUM PLUNGED THREE AND FIVE SIXTEENTHS TO TWO AND ONE QUARTER ON NEWS OF THE RESIGNATION OF ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN SCULLEY LOOKING AHEAD AT MARKET PERFORMANCE OVER SEVERAL WEEKS GREG KUHN OF KUHN ASSET MANAGEMENT SAID HE EXPECTS THE OVERALL MARKET INCLUDING SMALLER ISSUES TO DO SOME CHURNING LIKELY RETESTING LOWS BUT DURING MARCH HE SAID HE EXPECTS MARKET BAROMETERS TO SURPASS THEIR HIGHS PERHAPS RISING FIVE PERCENT TO SEVEN PERCENT OVER THE NEXT FEW MONTHS ENOUGH SKEPTICISM EXISTS TO KEEP THE BULL MARKET ALIVE MR. KUHN ADDED BUT THE BULLISH PROP FOR THE MARKET LOW SHORT TERM RATES HAS BEEN REMOVED ONCE INVESTOR OPTIMISM RETURNS STOCK PRICES COULD START TO CORRECT SIGNIFICANTLY HE SAID MARK T. WASILKO FORTY YEARS OLD WAS NAMED VICE PRESIDENT CORPORATE MARKETING OF THIS SOFTWARE AND SERVICES PROVIDER SUCCEEDING DICK MCGLINCHEY WHO TEMPORARILY HELD THAT POSITION SINCE JULY AND WHO PLANS TO LEAVE THE COMPANY NEXT MONTH MR. WASILKO WAS FORMERLY SENIOR VICE PRESIDENT CORPORATE MARKETING AT COMPUTER ASSOCIATES INTERNATIONAL INCORPORATED SEARS ROEBUCK AND COMPANY REPORTED A TURNAROUND FOR THE FOURTH QUARTER FROM A YEAR EARLIER LOSS BUT ITS PROFIT FELL SHORT OF SOME ANALYSTS' EXPECTATIONS BECAUSE OF PRICE CUTTING AND HIGHER ADVERTISING EXPENSES DURING THE CHRISTMAS SHOPPING PERIOD THE U. S.'S THIRD LARGEST RETAILER SAID NET INCOME WAS FIVE HUNDRED FORTY FOUR POINT SIX MILLION DOLLARS OR ONE DOLLAR AND THIRTY NINE CENTS A SHARE SWINGING FROM THE YEAR EARLIER NET LOSS OF ONE POINT EIGHT BILLION DOLLARS OR FOUR DOLLARS AND EIGHTY FOUR CENTS A SHARE THE NINETEEN NINETY TWO RESULTS INCLUDED CHARGES OF TWO POINT FOUR TWO BILLION DOLLARS TO ACCOUNT FOR RESTRUCTURING POST RETIREMENT BENEFITS AND HURRICANE ANDREW COSTS AND A GAIN OF ONE HUNDRED FIVE POINT ONE MILLION DOLLARS FROM DISCONTINUED OPERATIONS EXCLUDING THOSE ITEMS SEARS HAD PROFIT OF FIVE HUNDRED FOUR MILLION DOLLARS IN THE NINETEEN NINETY TWO FOURTH PERIOD ANALYSTS HAVE BEEN TREATED TO A CONSTANT STREAM OF GOOD NEWS FROM THE BIG RETAIL AND INSURANCE CONCERN OVER THE PAST YEAR AND WERE EXPECTING SLIGHTLY HIGHER FOURTH QUARTER PROFIT IN ALL BUT THE FOURTH QUARTER OF NINETEEN NINETY THREE SEARS'S EARNINGS SIGNIFICANTLY BESTED ANALYSTS' FORECASTS THE REPORT OF EARNINGS BELOW FORECASTS SENT SEARS SHARES DOWN THREE DOLLARS AND TWENTY FIVE CENTS OR SIX POINT FOUR PERCENT TO FORTY SEVEN DOLLARS AND SEVENTY FIVE CENTS IN HEAVY COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY BUT SOME ANALYSTS WEREN'T DISTURBED BY THE RESULTS QUOTE I DIDN'T SEE ANYTHING IN SEARS'S EARNINGS REPORT THAT WAS TOO TERRIBLE QUOTE SAID KAREN SACK OF STANDARD AND POOR'S CORPORATION SHE HAD BEEN EXPECTING FOURTH QUARTER EARNINGS OF ONE DOLLAR AND FORTY TWO CENTS A SHARE THREE CENTS HIGHER THAN THE FIGURE SEARS REPORTED THEY STILL DID WELL SHE SAID FOR ALL OF NINETEEN NINETY THREE SEARS REPORTED RECORD NET INCOME OF TWO POINT THREE SEVEN BILLION DOLLARS OR SIX DOLLARS AND THIRTEEN CENTS A SHARE COMPARED WITH A NET LOSS IN NINETEEN NINETY TWO OF THREE POINT NINE THREE BILLION DOLLARS OR TEN DOLLARS AND SEVENTY TWO CENTS A SHARE THOSE RESULTS INCLUDED GAINS IN NINETEEN NINETY THREE OF SIX HUNDRED THIRTY FIVE MILLION DOLLARS FROM ITS ALLSTATE CORPORATION'S INITIAL PUBLIC OFFERING AND SEVENTY SIX POINT ONE MILLION DOLLARS FROM TAX ACCOUNTING CHANGES AND NINETEEN NINETY TWO CHARGES AGAINST EARNINGS TOTALING FIVE POINT FOUR EIGHT BILLION DOLLARS REVENUE FELL TWO POINT NINE PERCENT TO FIFTY POINT EIGHT FOUR BILLION DOLLARS FROM FIFTY TWO POINT THREE FOUR BILLION DOLLARS WE'RE ABSOLUTELY THRILLED WITH THE YEAR SAID SEARS CHAIRMAN EDWARD A. BRENNAN WE'RE VERY PLEASED WITH THE FOURTH QUARTER MR. BRENNAN SAID THE COMPANY'S STRONG ANNUAL PERFORMANCE RESULTED FROM THE COMPANY'S REPOSITIONING PROGRAM AND FROM RECORD EARNINGS AT ITS ALLSTATE INSURANCE SUBSIDIARY SEARS'S ALLSTATE INSURANCE UNIT REPORTED FOURTH QUARTER NET INCOME OF TWO HUNDRED FIFTY NINE MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE COMPARED WITH A LOSS OF ONE HUNDRED THIRTY NINE MILLION DOLLARS OR THIRTY TWO CENTS A SHARE ON A PRO FORMA BASIS ALLSTATE BECAME A PUBLICLY TRADED COMPANY IN JUNE WHEN SEARS SOLD TWENTY PERCENT OF ALLSTATE TO THE PUBLIC SEARS THEREFORE INCLUDED TWO HUNDRED EIGHT MILLION DOLLARS OF ALLSTATE'S FOURTH QUARTER PROFIT AS ITS OWN FOR THE YEAR ALLSTATE REPORTED RECORD NET INCOME OF ONE POINT THREE OH BILLION DOLLARS OR TWO DOLLARS AND NINETY NINE CENTS A SHARE COMPARED WITH A PRIOR YEAR LOSS OF EIGHT HUNDRED TWENTY FIVE MILLION DOLLARS OR ONE DOLLAR AND NINETY ONE CENTS A SHARE ALLSTATE OFFICIALS ATTRIBUTED THE RESULTS TO EXPENSE REDUCTION AND THE BENEFITS OF A RECAPITALIZATION SEARS'S MERCHANDISE GROUP WHICH CONSISTS OF THE STORE AND CREDIT CARD OPERATIONS EARNED THREE HUNDRED TEN POINT THREE MILLION DOLLARS IN THE FOURTH QUARTER COMPARED WITH A LOSS OF ONE POINT FOUR SIX BILLION DOLLARS A YEAR EARLIER WHICH INCLUDED A ONE POINT SIX SIX BILLION DOLLAR RESTRUCTURING CHARGE SEARS SUCCEEDED IN CUTTING COSTS IN ITS MERCHANDISE UNIT AS ITS SELLING AND ADMINISTRATIVE EXPENSES DECLINED TO TWENTY FIVE PERCENT OF SALES IN THE QUARTER FROM TWENTY SIX POINT THREE PERCENT OF SALES A YEAR EARLIER REVENUE FOR THE DIVISION CLIMBED ELEVEN PERCENT TO NINE POINT TWO NINE BILLION DOLLARS WHILE THE PRICE CUTTING AND PROMOTIONAL COSTS MIGHT HAVE BEEN HIGHER THAN EXPECTED THEY ARE LIKELY TO HELP THE COMPANY IN THE FUTURE AS SEARS MOVES TO STRENGTHEN APPAREL SALES ANALYSTS SAY SEARS BUSINESS CONTINUES TO BE STRONG THEY CONTINUE TO GET GAINS IN APPAREL AND THEY CONTINUE TO TAKE COSTS OUT OF THEIR OPERATIONS SAID PETER SCHAEFFER AN ANALYST WITH LYNCH JONES AND RYAN INCORPORATED QUOTE BUT AT THE SAME TIME THEY ARE BUILDING A NEW BUSINESS AND THAT'S EXPENSIVE QUOTE MR. BRENNAN SAID HE EXPECTS THE COMPANY TO CONTINUE TO PERFORM WELL THIS YEAR WE ESTABLISHED SIGNIFICANT MOMENTUM IN NINETEEN NINETY THREE AND ARE FOCUSING OUR EFFORTS TO CONTINUE IT IN NINETEEN NINETY FOUR HE SAID ROBERT S. COLMAN WAS ELECTED A DIRECTOR OF THIS DENTAL IMAGING PRODUCTS MAKER SUCCEEDING GERALD WEINER FIFTY YEARS OLD WHO RESIGNED FOR PERSONAL REASONS MR. COLMAN FIFTY THREE IS A PARTNER WITH COLMAN FURLONG AND COMPANY A PRIVATE MERCHANT BANKING FIRM CANADIAN HOUSING STARTS DECLINED FOURTEEN POINT NINE PERCENT IN JANUARY TO A SEASONALLY ADJUSTED ANNUAL RATE OF ONE HUNDRED FORTY TWO THOUSAND FIVE HUNDRED FROM A DECEMBER RATE OF ONE HUNDRED SIXTY SEVEN THOUSAND FOUR HUNDRED CANADA MORTGAGE AND HOUSING CORPORATION A GOVERNMENT AGENCY SAID THE DECLINE WAS LED BY A THIRTY POINT SIX PERCENT DROP IN NEW CONSTRUCTION OF MULTIPLE HOUSING UNITS IN URBAN AREAS URSULA FAIRBAIRN WAS ELECTED A DIRECTOR OF THIS APPAREL COMPANY INCREASING BOARD MEMBERSHIP TO THIRTEEN MS. FAIRBAIRN FIFTY ONE YEARS OLD IS SENIOR VICE PRESIDENT OF HUMAN RESOURCES FOR UNION PACIFIC CORPORATION TO UNDERSTAND PRESIDENT CLINTON'S NEW BUDGET YOU NEED TO KNOW THE LINGO LEXICON OF INCOHERENT NOMENCLATURE BY GOVERNMENT OFFICIALS BUR OR BOTTOM UP REVIEW WASN'T DREAMED UP IN LAS VEGAS IT'S ABOUT CUTTING THE MILITARY AND MAKING IT FIT INTO THE POST COLD WAR WORLD HIDTA OR HIGH INTENSITY DRUG TRAFFICKING AREAS IS A PROGRAM AIMED AGAINST CRACK HOUSES OR DEALERS HANGING OUT ON THE STREET ISTEA PRONOUNCED QUOTE ICE TEA QUOTE HAS NOTHING TO DO WITH SUMMER AFTERNOONS OR RAPPERS IT STANDS FOR INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT WHICH HAS SOMETHING TO DO WITH UNSNARLING TRAFFIC JAMS AND TYING TONGUES AND IN THE CLINTON BUDGET INVESTMENT OFTEN STANDS FOR INCREASED SPENDING IF THE BUDGET STILL GETS YOU DOWN MAYBE YOU NEED A LITTLE LIFT LEVERAGED INVESTMENTS FOR TOMORROW WHICH SUBSIDIZES PRIVATE INVESTMENT IN DISTRESSED URBAN NEIGHBORHOODS NEW ACRONYMS AND WORDS COME ALONG EVERY SO OFTEN BUT IT'S THE SAME OLD THING ONLY IT SOUNDS A LITTLE ZIPPIER SAYS JAMES BOREN HEAD OF INATAPROBU THE INTERNATIONAL ASSOCIATION OF PROFESSIONAL BUREAUCRATS A SPOOF GROUP WHOSE MOTTO IS WHEN IN DOUBT MUMBLE THE JARGON HE SAYS IS ALL ABOUT TRYING TO KEEP THE PEOPLE FROM FIGURING OUT WHAT IS GOING ON IN WASHINGTON THEN AGAIN THE WHOLE THING MAY BE A TRACTOR FLOP ON THE LIST OF PROPOSED TERMINATIONS IS CHICKEN LITTLE FOLLOW ON AN ARMY PROGRAM ON TRACKING MOBILE MISSILES THE BUDGET ALSO PROPOSES TO CUT SOME EMPLOYEES BUT IF YOU WORK FOR THE GOVERNMENT DON'T WORRY IT ISN'T FIRING PEOPLE OR LAYING THEM OFF IT ISN'T EVEN DOWNSIZING IT IS RIGHT SIZING ONE HUNDRED THOUSAND POSITIONS THAT SHOULD MAKE EVERYONE FEEL BETTER W. W. BOISTURE JUNIOR FORTY NINE YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT OF THIS CORPORATE JET MANUFACTURER A NEW POSITION MR. BOISTURE WAS MOST RECENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RAYTHEON COMPANY'S CORPORATE JETS UNIT IN QUOTE THERE IS NO HEALTH CARE CRISIS QUOTE EDITORIAL PAGE JANUARY TWENTY FIFTH IRWIN M. STELZER MISUSES AND MISQUOTES MY RESEARCH ON THE DURATIONS OF SPELLS WITHOUT HEALTH INSURANCE HE SUGGESTS I BELIEVE THAT MOST ARE UNINSURED FOR ONLY A SHORT TIME THAT IS NOT TRUE MY COLLEAGUES AND I HAVE FOUND THAT DURING THE MID NINETEEN EIGHTIES HALF OF ALL UNINSURED SPELLS ENDED WITHIN SIX MONTHS BUT THAT ALSO MEANS THAT HALF LASTED LONGER THAN SIX MONTHS SPECIFICALLY TWENTY EIGHT PERCENT LASTED MORE THAN ONE YEAR AND EIGHTEEN PERCENT LASTED MORE THAN TWO YEARS MR. STELZER THEN IMPLIES I ESTIMATE THAT FIVE POINT FIVE MILLION PERSONS ARE CHRONICALLY UNINSURED THAT TOO IS NOT TRUE I ESTIMATE THAT IN NINETEEN NINETY TWO ABOUT TWENTY ONE MILLION AMERICANS WERE UNINSURED FOR AT LEAST A YEAR FINALLY WHEN MR. STELZER MAKES LIGHT OF THE THIRTY SEVEN MILLION PEOPLE WITHOUT HEALTH INSURANCE HE MISSTATES WHAT THE NUMBER MEANS THE FIGURE OF THIRTY SEVEN MILLION COMES FROM POINT IN TIME SURVEYS AND SO INCLUDES ONLY THOSE PEOPLE WHO WERE UNINSURED ON THE DAY THE SURVEY WAS CONDUCTED THE NUMBER OF PEOPLE UNINSURED AT SOME TIME DURING A YEAR IS SIGNIFICANTLY LARGER IN NINETEEN NINETY TWO FOR EXAMPLE I ESTIMATE THAT WHILE TWENTY ONE MILLION PEOPLE WERE UNINSURED FOR THE ENTIRE YEAR ANOTHER THIRTY SEVEN MILLION WERE UNINSURED FOR SPELLS OF ONE TO ELEVEN MONTHS THUS THERE WERE FIFTY EIGHT MILLION AMERICANS AT RISK FOR MEDICAL CARE BILLS FOR AT LEAST PART OF NINETEEN NINETY TWO FIFTY EIGHT MILLION AMERICANS WITHOUT HEALTH INSURANCE FOR SOME PORTION OF A YEAR IS A SIGN OF A HEALTH CARE CRISIS IN THIS COUNTRY MR. STELZER MAKES SOME EXCELLENT POINTS HOWEVER HE DOES NOT MENTION THE MAJOR REASON HEALTH CARE COSTS HAVE RISEN FROM FIVE PERCENT OF G. N. P. TO FOURTEEN PERCENT FEW CONSUMERS OF HEALTH CARE NOW PAY FOR THEIR CARE DIRECTLY AND NO ONE SPENDS SOMEONE ELSE'S MONEY THE EMPLOYER'S THE INSURANCE COMPANY'S OR THE GOVERNMENT'S AS CAREFULLY AS HE OR SHE SPENDS HIS OR HER OWN I PREDICT THAT IF MEDISAVE ACCOUNTS PLUS HIGH DEDUCTIBLE CATASTROPHIC INSURANCE POLICIES REPLACED PRESENT EMPLOYER MEDICARE AND MEDICAID HEALTH COVERAGE HEALTH CARE COSTS WOULD BE MORE THAN CUT IN HALF AS A FRACTION OF G. N. P. MY RECENT RESEARCH SHOWS THAT FIFTY SIX PERCENT OF THE UNINSURED AT A POINT IN TIME WILL BE UNINSURED FOR MORE THAN TWO YEARS AND SEVENTY SEVEN PERCENT WILL BE UNINSURED FOR MORE THAN ONE YEAR THIS SUGGESTS THAT OF THE THIRTY SEVEN MILLION UNINSURED AT A POINT IN TIME BETWEEN TWENTY ONE MILLION AND TWENTY NINE MILLION PEOPLE ARE CHRONICALLY UNINSURED THESE NUMBERS ARE MUCH HIGHER THAN THE ESTIMATES OF FIVE MILLION TO ELEVEN MILLION CHRONICALLY UNINSURED OFTEN CITED IN THE PRESS MR. STELZER AND OTHERS HAVE ALSO TRIED TO DISMISS THE UNINSURED PROBLEM BY CLAIMING THAT THE CHRONICALLY UNINSURED HAVE EITHER HIGH INCOMES OR ARE YOUNG PEOPLE WHO VOLUNTARILY DECLINE HEALTH COVERAGE MY DATA SUGGEST THE PROBLEM CANNOT BE DISMISSED SO EASILY ONLY FOURTEEN PERCENT OF THE CHRONICALLY UNINSURED HAVE INCOMES ABOVE THREE TIMES THE POVERTY LINE AND ONLY SIXTEEN PERCENT OF THE UNINSURED FALL INTO THE EIGHTEEN TO TWENTY FOUR AGE GROUP THAT MIGHT BE DECLINING COVERAGE BECAUSE IT IS NOT NEEDED IN FACT WITH ONLY A FEW MINOR EXCEPTIONS THE CHARACTERISTICS OF THE CHRONICALLY UNINSURED ARE VERY SIMILAR TO THOSE OF THE UNINSURED WHO ARE UNINSURED FOR A SHORTER TIME A MAJORITY OF THE UNINSURED ARE WORKING OR IN A FAMILY WHERE SOMEONE IS WORKING AND HAVE INCOMES BELOW ONE HUNDRED FIFTY PERCENT OF THE POVERTY LINE IF THERE IS ANY TYPICAL UNINSURED FAMILY IT IS PROBABLY A WORKING POOR FAMILY WHOSE BREADWINNER WORKS FOR AN EMPLOYER WHO DOES NOT PROVIDE INSURANCE AND MANY OF THESE PEOPLE NEED HEALTH INSURANCE BECAUSE OF MOUNTING HEALTH BILLS NASDAQ IS MOVING QUICKLY TO LIFT LIMITATIONS ON REPORTING STOCK TRADES IN SIXTEENTHS OF A DOLLAR ACCORDING TO THE CHAIRMAN OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THE MOVE EXPECTED TO BE CONSIDERED BY THE N. A. S. D. BOARD AS EARLY AS NEXT MONTH COMES IN RESPONSE TO A SPECIFIC RECOMMENDATION IN THE RECENT MARKET TWO THOUSAND REPORT BY THE STAFF OF THE SECURITIES AND EXCHANGE COMMISSION THE STAFF SUGGESTED REPORTING STOCK TRADES IN SIXTEENTHS RATHER THAN THE TRADITIONAL EIGHTHS OF A DOLLAR AS AN INTERIM STEP TOWARD EVENTUAL DECIMALIZATION OR REPORTING IN TENTHS OF A DOLLAR NASDAQ NOW ALLOWS TRADES IN STOCKS VALUED AT TEN DOLLARS A SHARE OR LESS TO BE REPORTED IN SIXTEENTHS RATHER THAN EIGHTHS TRADES ABOVE TEN DOLLARS A SHARE MUST BE REPORTED IN EIGHTHS THE N. A. S. D. BOARD WILL BE ASKED TO DO AWAY WITH THE TEN DOLLAR CEILING AT ITS MEETINGS IN MARCH AND MAY N. A. S. D. CHAIRMAN JOSEPH HARDIMAN SAID THE CHANGE WOULD HAVE TO BE APPROVED BY THE S. E. C. MR. HARDIMAN SAID THE NASDAQ SHIFT TO REPORTING IN SIXTEENTHS WOULD MORE ACCURATELY REFLECT THE LARGE NUMBER OF INSTITUTIONAL TRADES THAT ARE NEGOTIATED IN SIXTEENTHS BUT ROUNDED UP TO THE NEXT EIGHTH FOR REPORTING PURPOSES SEPARATELY THE S. E. C. IS SCHEDULED TO CONSIDER ANOTHER MARKET TWO THOUSAND RECOMMENDATION AT ITS MEETING TODAY THE STAFF HAS SUGGESTED THAT THE AGENCY REQUIRE BROKERS WHO OPERATE AUTOMATED TRADING SYSTEMS TO KEEP RECORDS OF PARTICIPANTS VOLUME AND TRANSACTIONS THE S. E. C. WILL ALSO CONSIDER AN UNRELATED RULE REQUIRING LARGE SECURITIES TRADERS TO REGISTER ANNUALLY WITH THE S. E. C. AND REQUIRING BROKERS TO KEEP RECORDS OF THE LARGE TRADERS' ACCOUNTS THAT WOULD BE AVAILABLE TO THE AGENCY LARGE TRADERS WOULD FILE ANNUALLY WITH THE S. E. C. AND REPORT THEIR IDENTITY AND ACCOUNTS THE S. E. C. SAID JOE B. FOSTER FIFTY NINE YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NEWFIELD EXPLORATION COMPANY AND CHARLES G. STALON SIXTY FOUR AN INDEPENDENT CONSULTANT AND SENIOR ECONOMIST AT THE ARGONNE NATIONAL LABORATORY WERE BOTH NAMED DIRECTORS OF THIS NATURAL GAS DISTRIBUTION AND EXPLORATION COMPANY INCREASING THE BOARD TO THIRTEEN TO THE FURY OF RIVAL BANKS THE FRENCH GOVERNMENT APPEARS SET TO RIDE TO THE RESCUE OF CREDIT LYONNAIS THE STATE OWNED BANKING COLOSSUS THAT HAS BEEN MAIMED BY ITS OWN AGGRESSIVE EXPANSION STRATEGY OFFICIALS CONFIRMED REPORTS IN THE FRENCH PRESS THAT THE GOVERNMENT IS CONSIDERING A RECAPITALIZATION OF THE BANK OF AS MUCH AS FOUR BILLION FRANCS SIX HUNDRED SEVENTY SEVEN MILLION DOLLARS WITH GOVERNMENT HELP CREDIT LYONNAIS IS ALSO LIKELY TO REMOVE AS MUCH AS TWENTY EIGHT BILLION FRANCS OF SOURED REAL ESTATE LOANS AND OTHER DUBIOUS ASSETS FROM ITS BALANCE SHEET BY SHUNTING THEM OFF INTO A SEPARATE COMPANY CREDIT LYONNAIS PLUNGED INTO THE RED IN NINETEEN NINETY TWO AND IS EXPECTED TO SHOW ANOTHER HEFTY LOSS IN NINETEEN NINETY THREE FOLLOWING A HUGE SPENDING SPREE DURING THE LATE NINETEEN EIGHTIES BY ITS FORMER CHAIRMAN JEAN YVES HABERER UNDER HIS STEWARDSHIP THE BANK EXPANDED ITS PRESENCE THROUGHOUT EUROPE BUT ALSO RAN INTO MAJOR FINANCIAL AND LEGAL PROBLEMS AMONG OTHER THINGS CREDIT LYONNAIS IS CURRENTLY THE UNWILLING OWNER OF HOLLYWOOD'S TROUBLED M. G. M. FILM STUDIO AND IS ALSO IMPLICATED IN A MAJOR SWISS FRAUD INQUIRY FULL DETAILS OF THE RESCUE PACKAGE AREN'T EXPECTED TO BE ANNOUNCED BEFORE CREDIT LYONNAIS REPORTS ITS NINETEEN NINETY THREE RESULTS AT THE END OF NEXT MONTH AND A FINANCE MINISTRY SPOKESMAN DECLINED TO COMMENT BUT THE TROUBLED BANK'S PRIVATE SECTOR RIVALS AREN'T WAITING FOR THE FINAL TEXT THEY ARE ALREADY CRYING FOUL AT THE VERY IDEA THAT THE STATE WILL HELP CREDIT LYONNAIS CLEAN UP ITS BALANCE SHEET THE CHAIRMEN OF SOCIETE GENERALE AND BANQUE NATIONALE DE PARIS WHICH WAS ONLY RECENTLY PRIVATIZED ARE BOTH ARGUING THAT ANY GOVERNMENT ASSISTANCE TO CREDIT LYONNAIS WOULD DISTORT FAIR COMPETITION GIVEN THAT MOST OF THE BANK'S PROBLEMS ARE SELF INFLICTED THEY SAY CREDIT LYONNAIS SHOULD SOLVE THEM ON ITS OWN PERHAPS BY SELLING PART OF ITS HUGE ASSET PORTFOLIO WHICH IS VALUED AT MORE THAN SIXTY BILLION FRANCS MARC VIENOT CHAIRMAN OF SOCIETE GENERALE HAS SAID IT WOULD BE QUOTE SHOCKING QUOTE IF CREDIT LYONNAIS WERE ALLOWED TO BOUNCE BACK WITHOUT PAYING FOR AT LEAST SOME OF ITS OWN MISTAKES AND ONE OFFICIAL AT ANOTHER BIG FRENCH BANK GRIPES THAT WE KEPT HEARING THAT IT WAS SO ACTIVE AND DYNAMIC WHILE WE WERE SUPPOSED TO BE SLEEPY BECAUSE WE WERE DOING TRADITIONAL BANKING I DON'T SEE WHY TAXPAYERS SHOULD NOW PUT IT BACK ON ITS FEET DESPITE SUCH COMPLAINTS THE GOVERNMENT SEEMS WILLING TO STEP IN BECAUSE IT HOPES TO READY CREDIT LYONNAIS FOR PRIVATIZATION THAT REMAINS A LONG TERM GOAL THE FIRST STAGE INVOLVES ENDING THE BANK'S STATUS AS A NATIONAL EMBARRASSMENT MR. HABERER WAS PUSHED OUT LATE LAST YEAR AND SUCCEEDED BY JEAN PEYRELEVADE THE FORMER CHAIRMAN OF FRANCE'S BIGGEST INSURER UNION DES ASSURANCES DE PARIS MR. PEYRELEVADE HAS BEEN MOVING FAST TO CURB THE BANK'S EXCESSES AND REORGANIZE ITS MANAGEMENT HE IS EXPECTED TO APPOINT PASCAL LAMY THE CHIEF OF STAFF TO JACQUES DELORS THE PRESIDENT OF THE EUROPEAN UNION COMMISSION IN BRUSSELS TO A TOP POSITION IN THE BANK OVER THE HEADS OF CURRENT SENIOR MANAGEMENT OFFICIALS IN BRUSSELS CLOSE TO MR. LAMY CONFIRMED THE IMMINENT APPOINTMENT MR. PEYRELEVADE HAS ALSO MOVED TO REIN IN SUBSIDIARIES SUCH AS ALTUS FINANCE THAT UNDER HIS PREDECESSOR BECAME VEHICLES FOR SOME OF THE BANK'S BIGGEST AND MOST RISKY FINANCIAL MOVES AMONG OTHER THINGS ALTUS ACQUIRED A THREE POINT TWO FIVE BILLION DOLLAR PORTFOLIO OF HIGH RISK HIGH YIELD JUNK BONDS OF THE FAILED EQUITABLE LIFE INSURANCE COMPANY OF THE U. S. BANKING ANALYSTS SAY A MAJOR HOUSECLEANING IS LONG OVERDUE MOODY'S INVESTORS SERVICE LAST WEEK PLACED THE RATINGS OF CREDIT LYONNAIS AND ITS SUBSIDIARIES UNDER REVIEW AND SOME OTHER ANALYSTS SAY THE BANK'S RATING WOULD TUMBLE WERE IT NOT OWNED BY THE FRENCH STATE ALTUS FINANCE A SUBSIDIARY OF CREDIT LYONNAIS IN NINETEEN NINETY ONE ACQUIRED A THREE POINT TWO FIVE BILLION DOLLAR JUNK BOND PORTFOLIO FROM FAILED INSURER EXECUTIVE LIFE INSURANCE COMPANY OF THE U. S. IN AN ARTICLE YESTERDAY THE FAILED INSURER WAS INCORRECTLY IDENTIFIED AS EQUITABLE LIFE INSURANCE COMPANY EQUITABLE LIFE REMAINS A GOING CONCERN THERE'S NO RESPITE FOR JOHN MAJOR'S SCANDAL RIDDEN CONSERVATIVE PARTY JUST AS THE BRITISH PRIME MINISTER IS TRYING TO REGAIN SUPPORT HIS EMBATTLED GOVERNMENT WAS DEALT ANOTHER BLOW WITH SCANDALOUS CIRCUMSTANCES SURROUNDING THE DEATH OF A CONSERVATIVE MEMBER OF PARLIAMENT THE DEAD M. P. WAS FOUND IN HIS APARTMENT WEARING NOTHING BUT A PAIR OF WOMEN'S STOCKINGS HIS CASE IS THE LATEST OF A SERIES OF EVENTS IN RECENT WEEKS THAT HAVE SHATTERED MR. MAJOR'S EFFORTS TO SET A QUOTE BACK TO BASICS QUOTE AGENDA BASED ON LAW AND ORDER AND PUBLIC MORALITY I THINK WE HAVE NEVER EXPERIENCED ANYTHING QUITE LIKE THIS IT IS ALMOST UNBELIEVABLE GEOFFREY DICKENS A TORY M. P. TOLD B. B. C. RADIO STEPHEN MILLIGAN FORTY FIVE YEARS OLD A JUNIOR M. P. WAS FOUND DEAD WITH A PLASTIC BAG TIED OVER HIS HEAD AND A LENGTH OF ELECTRIC CORD WOUND AROUND HIS NECK POLICE REFUSED TO COMMENT ON HIS DEATH BUT WERE UNDERSTOOD TO BE INVESTIGATING POSSIBILITIES FROM MURDER TO A TRANSVESTITE SEX SESSION THAT WENT OUT OF CONTROL A BACHELOR WHO SPORTED PIN STRIPED SUITS MR. MILLIGAN HAD WIDELY BEEN REGARDED AS ONE OF THE MOST TALENTED OF A YOUNGER GENERATION OF TORY M. P.S ASIDE FROM ITS TRAGIC CHARACTER MR. MILLIGAN'S DEATH CONFRONTS MR. MAJOR WITH THE UNCOMFORTABLE PROSPECT OF A PARLIAMENTARY BY ELECTION AT A TIME WHEN PUBLIC ATTENTION IS FOCUSED ON SCANDALS IN HIS PARTY THE PROBLEMS BEGAN ON CHRISTMAS DAY WITH THE DISCLOSURE THAT TIM YEO A JUNIOR ENVIRONMENT MINISTER HAD FATHERED A CHILD IN AN EXTRAMARITAL AFFAIR AFTER SEVERAL DAYS OF TRYING TO HANG ONTO HIS JOB MR. YEO WAS FORCED TO RESIGN ACCORDING TO REPORTS CIRCULATING IN LONDON LAST NIGHT FURTHER REVELATIONS IN THE BRITISH PRESS OF SEXUAL PECCADILLOES BY OTHER TORY POLITICIANS COULD BE IMMINENT NO SOONER WAS THAT INCIDENT PAST THAN ANOTHER TORY M. P. DAVID ASHBY SAID HE HAD SHARED A BED WITH A MAN IN A FRENCH HOTEL THOUGH HE INSISTED THAT THEY WERE MERELY FRIENDS AND THAT NO SEXUAL ACT TOOK PLACE A FEW DAYS LATER THE WIFE OF A JUNIOR MINISTER THE EARL OF CAITHNESS COMMITTED SUICIDE OVER HER HUSBAND'S FRIENDSHIP WITH ANOTHER WOMAN THE OPPOSITION LABOR PARTY HAS SEIZED ON THE DISCLOSURES TO CRITICIZE BACK TO BASICS AS A SHAM A GENERAL ELECTION ISN'T DUE UNTIL APRIL NINETEEN NINETY SEVEN BUT THE CONSERVATIVES MAY FIND AN ELECTION FORCED UPON THEM MUCH EARLIER OPINION POLLS CURRENTLY SHOW THE LABOR PARTY LEADING THE TORIES BY AROUND FORTY SEVEN PERCENT TO TWENTY EIGHT PERCENT SHARP TAX INCREASES DUE TO COME INTO EFFECT IN APRIL HAVE CONTRIBUTED TO THE GOVERNMENT'S DECLINING POPULARITY AND IN ANOTHER INCIDENT OVER THE WEEKEND ADDING TO THE GENERAL ATMOSPHERE OF INEPTITUDE MICHAEL PORTILLO THE HAWKISH FORTY YEAR OLD TREASURY SECRETARY TOUTED BY RIGHT WING TORIES AS A POSSIBLE SUCCESSOR TO MR. MAJOR ACCUSED STUDENTS IN OTHER EUROPEAN COUNTRIES OF CHEATING ON EXAMINATIONS HE LATER APOLOGIZED FOR THE REMARKS WHICH WERE SEIZED UPON BY FOREIGN DIPLOMATS AND COMMENTATORS AS EVIDENCE OF BRITISH XENOPHOBIA THE TORIES ARE ALMOST CERTAIN TO LOSE THE BY ELECTION TO FILL THE VACANCY LEFT BY MR. MILLIGAN'S DEATH IN TWO BY ELECTIONS LAST YEAR THE LIBERAL DEMOCRAT PARTY OVERTURNED SIZABLE CONSERVATIVE MAJORITIES A SIMILAR OUTCOME IN EASTLEIGH MR. MILLIGAN'S FORMER CONSTITUENCY IN SOUTHERN ENGLAND WOULD REDUCE MR. MAJOR'S MAJORITY IN THE HOUSE OF COMMONS TO ONLY FIFTEEN FROM TWENTY ONE AFTER THE LAST GENERAL ELECTION IN APRIL NINETEEN NINETY TWO NO DATE HAS YET BEEN SET FOR THE BALLOT BUT IT WILL HAVE TO TAKE PLACE WITHIN THE NEXT FEW MONTHS WHILE NOT IMMEDIATELY THREATENING THE GOVERNMENT'S SURVIVAL A PROBABLE TORY DEFEAT WOULD BE ONE MORE SETBACK FOR MR. MAJOR WHO IS BRITAIN'S MOST UNPOPULAR PRIME MINISTER SINCE WORLD WAR TWO ADDITIONALLY CONSERVATIVES FACE LOCAL ELECTIONS FOR TOWN COUNCILS IN MAY IN JUNE THERE ARE ELECTIONS TO THE EUROPEAN PARLIAMENT IF THE TORIES DO BADLY IN THESE VOTES MR. MAJOR IS LIKELY TO COME UNDER PRESSURE TO HAND OVER THE PARTY LEADERSHIP TO SOMEONE ELSE APPAREL MAKER LIZ CLAIBORNE INCORPORATED SAID IT ENTERED INTO AN AGREEMENT TO MARKET APPAREL PRODUCTS IN DUBAI UNITED ARAB EMIRATES THE FIRST FREE STANDING LICENSED LIZ CLAIBORNE STORE IN THE MIDDLE EAST REGION WILL OPEN FEBRUARY EIGHTH IN THE BUR JUMAN CENTRE THE COMPANY WILL DESIGN THE STORES WITH THE LICENSEE RESPONSIBLE FOR DAILY OPERATIONS THE COMPANY HAS NINETEEN STORES IN THE U. S. AND OTHER RETAIL LICENSE AGREEMENTS IN HONG KONG SINGAPORE SAINT MAARTEN AND JAPAN RITE AID CORPORATION SAID IT ACCEPTED ABOUT TWO POINT ONE MILLION SHARES UNDER ITS QUOTE DUTCH AUCTION QUOTE OFFER TO PURCHASE AS MANY AS TWENTY TWO MILLION OF ITS SHARES RITE AID A DRUGSTORE COMPANY SAID IT ACCEPTED ALL SHARES TENDERED AT OR BELOW ITS EIGHTEEN DOLLAR AND FIFTY CENT A SHARE PRICE UNDER AN OFFER THAT EXPIRED MONDAY GERARD H. MESNEL FIFTY SIX YEARS OLD A CONSULTANT TO THIS MAKER OF SEALING AND TRIMMING SYSTEMS AND OTHER RUBBER AND PLASTIC PRODUCTS WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT OF ADVANCED TECHNOLOGY WORLD WIDE HE WILL BE RESPONSIBLE FOR PRODUCT AND PROCESS DEVELOPMENT AS WELL AS IMPROVING THE COMPANY'S SEALING SYSTEMS TECHNOLOGIES ALSO BRUCE G. DAVIS FORMER MANAGER OF MATERIALS SOURCING AND SUPPORT OPERATIONS WITH GENERAL ELECTRIC CORPORATION'S G. E. TRANSPORTATION SYSTEMS WAS NAMED VICE PRESIDENT OF PURCHASING AND SUPPLY WORLD WIDE MR. DAVIS FORTY FIVE SUCCEEDS LARRY J. ENDERS WHO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY'S OLIVER RUBBER COMPANY UNIT IN JULY ATLANTIC SOUTHEAST AIRLINES SAID ITS JANUARY TRAFFIC ROSE THIRTY SIX POINT EIGHT PERCENT FROM THE YEAR EARLIER PERIOD THE CARRIER SAID IT FLEW FIFTY SIX POINT FIVE MILLION REVENUE PASSENGER MILES UP FROM FORTY ONE POINT THREE MILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED FELL TO FORTY TWO POINT THREE PERCENT FROM FORTY THREE POINT FOUR PERCENT FOR THE MONTH THOMAS R. JOHNSON JUNIOR FIFTY ONE YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF MANUFACTURING OF THIS APPAREL MAKER HE SUCCEEDS GERALD D. MCGILL FIFTY SIX WHO ANNOUNCED EARLY RETIREMENT LAST MONTH MR. JOHNSON PREVIOUSLY WAS A MANUFACTURING VICE PRESIDENT A. MAURICE MYERS PRESIDENT AND CHIEF OPERATING OFFICER OF THIS CARRIER WAS NAMED A DIRECTOR MR. MYERS FIFTY THREE YEARS OLD SUCCEEDS MICHAEL J. CONWAY WHO RESIGNED FROM THE BOARD LAST WEEK AFTER BEING OUSTED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER IN LATE DECEMBER F. L. PUTNAM THE THIRD WAS NAMED PRESIDENT OF THIS UTILITY EFFECTIVE MAY FIRST MR. PUTNAM FORTY EIGHT YEARS OLD AND CURRENTLY EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER SUCCEEDS CHARLES O. SWANSON SIXTY TWO WHO PLANS TO RETIRE AS PRESIDENT EFFECTIVE APRIL THIRTIETH MR. SWANSON WILL CONTINUE AS A DIRECTOR VANGUARD CELLULAR SYSTEMS INCORPORATED SAID IT HAS RAISED ITS EXISTING SENIOR CREDIT AGREEMENT BY ONE HUNDRED MILLION DOLLARS TO FUND INCREASED CAPITAL EXPENDITURES ADDITIONAL CELLULAR ACQUISITIONS AND ITS INITIAL THIRTY MILLION DOLLAR INVESTMENT IN GEOTEK INDUSTRIES INCORPORATED A GROUP OF TWENTY FINANCIAL INSTITUTIONS PROVIDED THE EXPANDED THREE HUNDRED NINETY MILLION DOLLAR FACILITY TO THIS OPERATOR OF CELLULAR TELEPHONE SYSTEMS MEDIA VISION INCORPORATED AND ANALOG DEVICES SAID THEY SIGNED AN AGREEMENT TO DEVELOP MULTIMEDIA SEMICONDUCTORS FOR PERSONAL COMPUTERS THE TWO COMPANIES SAID THEY ARE WORKING TOGETHER TO CREATE PRODUCTS THAT WILL BE MARKETED BY MEDIA VISION BEGINNING LATE NEXT YEAR ANALOG DEVICES IN NORWOOD MASSACHUSETTS IS A MAKER OF INTEGRATED CIRCUITS MEDIA VISION MAKES MULTIMEDIA PRODUCTS FOR PERSONAL COMPUTERS BANKERS CORPORATION PARENT OF BANKERS SAVINGS SAID DIRECTORS AUTHORIZED REPURCHASE OF UP TO SIX HUNDRED THOUSAND COMMON SHARES OR ABOUT FIVE PERCENT OF THE COMPANY'S COMMON STOCK THE COMPANY WHICH HAS TEN POINT NINE MILLION SHARES OUTSTANDING SAID SHARES WILL BE USED FOR BENEFIT PLANS AND CALLED THE SHARES QUOTE A GOOD INVESTMENT ALTERNATIVE QUOTE SOUTHWEST AIRLINES SAID ITS JANUARY TRAFFIC INCLUDING MORRIS AIR INCREASED TWENTY FIVE POINT THREE PERCENT THE AIRLINE REPORTED REVENUE PASSENGER MILES OF ONE POINT SIX OH BILLION FOR THE MONTH UP FROM ONE POINT TWO EIGHT BILLION FOR JANUARY NINETEEN NINETY THREE A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED INCREASED TO SIXTY THREE POINT ONE PERCENT FROM SIXTY TWO POINT NINE PERCENT A YEAR EARLIER SOUTHWEST SAID IT RESTATED NINETEEN NINETY THREE TRAFFIC STATISTICS TO INCLUDE THOSE OF MORRIS AIR WHICH IT ACQUIRED DECEMBER THIRTY FIRST NINETEEN NINETY THREE KEN LOWE FORTY THREE YEARS OLD A VICE PRESIDENT OF THIS COMPANY'S BROADCASTING UNIT SCRIPPS HOWARD BROADCASTING COMPANY WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT OF THE COMPANY'S NEW HOME AND GARDEN TELEVISION NETWORK UNIT AN E. W. SCRIPPS SPOKESMAN SAID LATER THIS YEAR THE NEW UNIT EXPECTS TO LAUNCH A TWENTY FOUR HOUR CABLE CHANNEL ORIGINATING FROM KNOXVILLE TENNESSEE THAT WILL FEATURE PROGRAMS ON HOME REPAIR REMODELING GARDENING HOME ELECTRONICS AND DECORATING E. W. SCRIPPS IS A MEDIA COMMUNICATIONS CONCERN UPJOHN COMPANY SAID SWEDISH REGULATORS APPROVED ITS CAVERJECT STERILE POWDER FOR THE TREATMENT OF MALE IMPOTENCE THE FIRST TIME A COUNTRY HAS CLEARED THE PRODUCT FOR MARKETING UPJOHN SAID MALE IMPOTENCE AFFECTS AN ESTIMATED FIFTY FIVE MILLION MEN WORLD WIDE AND THE COMPANY IS SEEKING WORLD WIDE REGISTRATION OF CAVERJECT THE PRODUCT WHICH A PATIENT IS TAUGHT TO INJECT ENCOURAGES PENILE BLOOD FLOW ALEXANDRE KOCH TORRES DE ASSIS WAS NAMED DIRECTOR OF THIS SECURITIES FIRM'S CAPITAL MARKETS ACTIVITIES IN BRAZIL EFFECTIVE MARCH FIRST MR. KOCH WILL OVERSEE INSTITUTIONAL TRADING ACTIVITY IN EQUITY EQUITY DERIVATIVE AND FIXED INCOME SECURITIES BASED IN SAO PAULO MR. KOCH HAD BEEN CHIEF ECONOMIST TREASURER AND HEAD OF THE INTERNATIONAL DEPARTMENT AT BANCO OMEGA S. A. VERIFONE INCORPORATED SAID ITS DIRECTORS APPROVED THE REPURCHASE OF AS MANY AS SEVEN HUNDRED FIFTY THOUSAND COMMON SHARES IN OPEN MARKET TRANSACTIONS DURING NINETEEN NINETY FOUR THE MAXIMUM AMOUNT OF CASH AUTHORIZED FOR THE BUYBACK IS FIFTEEN MILLION DOLLARS STOCK ACQUIRED WILL BE USED FOR THE COMPANY'S STOCK OPTION AND EMPLOYEE STOCK PURCHASE PROGRAMS VERIFONE A MAKER OF PAYMENT PROCESSING SYSTEMS HAS TWENTY THREE POINT NINE MILLION SHARES OUTSTANDING THIS MORTGAGE BANKING CONCERN ESTABLISHED THE OFFICE OF THE PRESIDENT AND NAMED ROBERT K. COLE AND BRAD MORRICE TO SERVE JOINTLY IN THAT NEW POSITION MR. COLE FORTY SEVEN YEARS OLD ALSO WILL HOLD THE TITLE OF CHIEF OPERATING OFFICER FINANCE AND MR. MORRICE THIRTY SEVEN WILL SERVE AS CHIEF OPERATING OFFICER ADMINISTRATION JACK FRENCH SIXTY TWO WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER PREVIOUSLY HELD THE TITLE OF PRESIDENT MR. COLE MOST RECENTLY WAS PRESIDENT OF TRIPLE FIVE INCORPORATED MR. MORRICE PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT OF PLAZA HOME MORTGAGE XEROX CORPORATION SAID IT ADDED FIVE NEW COPIERS RANGING IN PRICE FROM FOUR THOUSAND FOUR HUNDRED FIVE DOLLARS TO TWENTY THOUSAND SIX HUNDRED TWENTY FIVE DOLLARS TO ITS PRODUCT LINE THE COPIERS TO BE AVAILABLE IN MARCH INCLUDE THREE PRODUCTS IN THE FIFTY THREE SERIES LINE WITH TOUCH SENSITIVE SCREENS XEROX SAID THE OFFICE EQUIPMENT COMPANY ALSO ANNOUNCED TWO MODELS FOR ITS FIFTY SERIES COPIERS WHICH MAKE FIFTY COPIES AND TWENTY ONE COPIES A MINUTE THE CANADIAN HOUSE OF COMMONS APPROVED LEGISLATION ORDERING AN IMMEDIATE RESUMPTION OF WORK AT WEST COAST CANADIAN PORTS WHICH HAVE BEEN PARALYZED BY A TWELVE DAY OLD LABOR DISPUTE THE WORK STOPPAGE HAS HALTED SHIPMENTS OF GRAIN POTASH LUMBER AND OTHER COMMODITIES THROUGH VANCOUVER AND OTHER PORTS SOME CARGO HAS BEEN DIVERTED TO U. S. PORTS INCLUDING SEATTLE THE LEGISLATION PROVIDES FOR ARBITRATION OF THE DISPUTE WHICH CENTERS ON THE UNION'S WAGE DEMANDS THE UNION IS SEEKING AN INCREASE OF TWO POINT TWO OH CANADIAN DOLLARS ONE U. S. DOLLAR AND SIXTY FOUR CENTS OVER THREE YEARS IN THE HOURLY BASE RATE OF LONGSHOREMEN THE RATE IS CURRENTLY TWENTY ONE CANADIAN DOLLARS AND FORTY ONE CENTS AN HOUR N. E. C. CORPORATION WRACKED BY LOSSES AND BESIEGED BY U. S. PERSONAL COMPUTER MAKERS TAPPED ONE OF ITS MOST INTERNATIONAL MINDED EXECUTIVES HIROSHI KANEKO TO SUCCEED PRESIDENT TADAHIRO SEKIMOTO WHO WILL STEP ASIDE TO BECOME CHAIRMAN ANALYSTS SAID THE DECISION TO PASS ON THE PRESIDENTIAL REINS TO MR. KANEKO A SIXTY YEAR OLD EXECUTIVE VICE PRESIDENT COULD GIVE N. E. C. A FRESH CRACK AT STEMMING ITS FLOW OF RED INK AND REFOCUSING ITS P. C. BUSINESS IN JAPAN THE WORLD'S SECOND LARGEST P. C. MARKET THE ANNOUNCEMENT THAT DOCTOR SEKIMOTO WILL MOVE OUT OF THE PRESIDENT'S POST AND INTO THE LESS INVOLVED CHAIRMANSHIP WHILE ABRUPT WASN'T TOTALLY UNEXPECTED ANALYSTS AND COMPANY OFFICIALS SAID DOCTOR SEKIMOTO'S MOVE IS QUOTE GOOD NEWS FOR N. E. C. QUOTE SAID LEE KERK PHUA AN ANALYST WITH BARING SECURITIES JAPAN INCORPORATED MAYBE NOW WE'LL SEE N. E. C. STARTING TO CHANGE ITS STRATEGY IN ELEVATING MR. KANEKO TO PRESIDENT N. E. C. HAS MADE CLEAR IT WANTS A LEADER WITH A GLOBAL OUTLOOK JAPANESE EXECUTIVES STATIONED OVERSEAS FOR LONG STINTS ARE RARELY CONSIDERED FOR TOP MANAGEMENT POSITIONS BUT MR. KANEKO HAS SPENT FOUR OF THE PAST FIVE YEARS RUNNING N. E. C.'S U. S. OPERATIONS WE NEEDED SOMEONE WHO CAN MAKE N. E. C. AN EVEN MORE GLOBAL COMPANY THAN IT ALREADY IS DOCTOR SEKIMOTO SIXTY SEVEN SAID AT A NEWS CONFERENCE AT THE CONFERENCE MR. KANEKO GAVE FEW INDICATIONS AS TO HOW HE INTENDS TO LEAD THE JAPANESE COMPANY SAYING HE HAD LITTLE TIME TO THINK ABOUT IT SINCE HE HAD LEARNED OF HIS APPOINTMENT BARELY THIRTY SIX HOURS EARLIER WHILE HE STILL HAS SOME TIME TO PUT HIS THOUGHTS IN ORDER THE CHANGES DON'T TAKE EFFECT UNTIL JUNE ANALYSTS BELIEVE HE WILL HAVE TO MAKE HIS MARK QUICKLY THAT IS PARTLY BECAUSE N. E. C. IS STILL BLEEDING RED INK FROM AN ILL FATED FORAY INTO CONSUMER ELECTRONICS AND FROM THE HIGH YEN WHICH MAKES PRODUCTS MANUFACTURED IN JAPAN MORE EXPENSIVE OVERSEAS IN THE SIX MONTHS ENDED SEPTEMBER THIRTIETH NINETEEN NINETY THREE N. E. C. POSTED A CONSOLIDATED PRETAX LOSS OF EIGHT POINT FIVE FOUR BILLION YEN SEVENTY EIGHT POINT FIVE MILLION DOLLARS A SWING FROM AN EIGHT POINT TWO SIX BILLION YEN PRETAX PROFIT IN THE YEAR EARLIER PERIOD HOWEVER N. E. C. SAID IT EXPECTS TO POST A SMALL PRETAX PROFIT FOR THE FISCAL YEAR ENDING MARCH THIRTY FIRST LARGELY BECAUSE OF RECENT RESTRUCTURING MOVES AS WELL AS STRONG SEMICONDUCTOR SALES N. E. C. ALSO IS FACING THE MOST SERIOUS THREAT EVER TO ITS TEN YEAR DOMINANCE OF THE JAPANESE P. C. MARKET IN THE FORM OF PRICE COMPETITION FROM U. S. COMPANIES SUCH AS COMPAQ COMPUTER CORPORATION AND INTERNATIONAL BUSINESS MACHINES CORPORATION IN THE VIEW OF MANY ANALYSTS N. E. C. HAS ENDANGERED ITS FIFTY THREE PERCENT MARKET SHARE BY CLINGING STUBBORNLY TO P. C.S OF ITS OWN DESIGN AT A TIME WHEN THE WORLD IS MOVING TO I. B. M. STYLE COMPUTERS MR. KANEKO MAY HAVE THE TOOLS TO START TURNING N. E. C. AROUND WHILE IN THE U. S. HE WAS RESPONSIBLE FOR A RESTRUCTURING OF N. E. C.'S OPERATIONS A TASK THAT INCLUDED ELIMINATING THE U. S. CONSUMER ELECTRONICS BUSINESS AND CLOSING DOWN A HANDFUL OF SURPLUS MANUFACTURING PLANTS A MILITARY JUDGE ACCUSED THE NAVY'S TOP OFFICER OF UNLAWFULLY TRYING TO MANIPULATE THE TAILHOOK INVESTIGATION REVIVING THE QUESTION OF WHETHER THE ADMIRAL WOULD BE OUSTED NAVY CAPTAIN WILLIAM VEST JUNIOR IN A RULING THAT DISMISSED TAILHOOK RELATED CHARGES AGAINST THREE NAVY FLIERS ASSERTED THAT ADMIRAL FRANK KELSO THE CHIEF OF NAVAL OPERATIONS USED QUOTE UNLAWFUL COMMAND INFLUENCE QUOTE OVER THE INVESTIGATION OF TAILHOOK VIOLATIONS AND OVER THE SUBSEQUENT DISCIPLINING OF NAVAL OFFICERS THE JUDGE ALSO REJECTED SOME OF ADMIRAL KELSO'S TESTIMONY ABOUT WHAT HE WITNESSED AT THE NINETEEN NINETY ONE TAILHOOK CONVENTION OF NAVAL AVIATORS IN LAS VEGAS IT WASN'T IMMEDIATELY CLEAR HOW ADMIRAL KELSO OR HIS CIVILIAN SUPERIORS WOULD REACT TO THE JUDGE'S FINDING WHICH WAS ISSUED IN NORFOLK VIRGINIA A SPOKESMAN FOR THE ADMIRAL SAID HE WAS STILL REVIEWING THE JUDGE'S STATEMENT A SPOKESMAN FOR NAVY SECRETARY JOHN DALTON DIDN'T HAVE AN IMMEDIATE COMMENT A SPOKESWOMAN FOR DEFENSE SECRETARY WILLIAM PERRY SAID HE HASN'T HAD A CHANCE TO REVIEW THE JUDGE'S DECISION SHE SAID THAT WITHIN THE CHAIN OF COMMAND THE FIRST RESPONSE MUST COME FROM THE NAVY NAVY SECRETARY DALTON RECOMMENDED IN EARLY OCTOBER TO THEN DEFENSE SECRETARY LES ASPIN THAT ADMIRAL KELSO BE FORCED TO RETIRE EARLY FOR HIS HANDLING OF THE TAILHOOK SCANDAL BUT MR. ASPIN REJECTED THE RECOMMENDATION PARTLY BECAUSE HE ADMIRED ADMIRAL KELSO'S DEFT REORGANIZATION OF THE TRADITION BOUND NAVY TO FIT THE POST COLD WAR WORLD AND PARTLY BECAUSE THE ADMIRAL LEARNED OF THE RECOMMENDATION ONLY AFTER IT LEAKED TO C. B. S. NEWS THE CONTROVERSY OVER FIRING ADMIRAL KELSO WAS SOON OVERWHELMED BY EVENTS IN SOMALIA MR. ASPIN MADE THE DECISION TO KEEP ON THE ADMIRAL ON OCTOBER THIRD JUST AS NEWS WAS ARRIVING THAT SCORES OF U. S. ARMY RANGERS AND SPECIAL FORCES TROOPS HAD BEEN WOUNDED IN A FIREFIGHT IN DOWNTOWN MOGADISHU PARTLY BECAUSE OF EVENTS IN SOMALIA MR. ASPIN HIMSELF WAS PRESSURED BY THE PRESIDENT INTO SUBMITTING HIS RESIGNATION JUST TWO MONTHS LATER ALLIEDSIGNAL INCORPORATED POSTED A TWENTY NINE PERCENT INCREASE IN FOURTH QUARTER PROFIT DECLARED A TWO FOR ONE STOCK SPLIT AND RAISED ITS QUARTERLY DIVIDEND SIXTEEN PERCENT CAPPING THE RESULTS OF A COMPANY WIDE RESTRUCTURING EFFORT FOURTH QUARTER PROFIT ROSE TO ONE HUNDRED SEVENTY EIGHT MILLION DOLLARS OR ONE DOLLAR AND TWENTY FIVE CENTS A SHARE FROM ONE HUNDRED THIRTY EIGHT MILLION DOLLARS OR NINETY EIGHT CENTS A SHARE A YEAR EARLIER THE PROFIT WAS HIGHER THAN WALL STREET ANALYSTS' CONSENSUS ESTIMATE OF ONE DOLLAR AND TWENTY CENTS COMPILED BY ZACKS INVESTMENT RESEARCH SALES ROSE SLIGHTLY TO THREE POINT OH SIX BILLION DOLLARS FROM THREE POINT OH FIVE BILLION DOLLARS THE COMPANY SAID IT WILL PAY HOLDERS FIVE CENTS A PRESPLIT SHARE FOR REDEMPTION OF COMMON SHARE PURCHASE RIGHTS IT WILL BE PAID ALONG WITH THE CURRENT TWENTY NINE CENT A SHARE QUARTERLY DIVIDEND ON MARCH TENTH TO STOCK OF RECORD FEBRUARY EIGHTEENTH THE RIGHTS WERE AUTHORIZED BY ALLIEDSIGNAL'S BOARD IN NINETEEN EIGHTY SIX AS A POISON PILL DESIGNED TO MAKE A HOSTILE TAKEOVER MORE DIFFICULT THE STOCK SPLIT WILL USE THE STOCK PREVIOUSLY RESERVED FOR THE RIGHTS THE SHARE SPLIT FOLLOWS A THIRTY ONE PERCENT INCREASE IN THE PRICE OF ALLIEDSIGNAL SHARES OVER THE LAST YEAR THE ADDITIONAL SHARE FOR EACH SHARE OWNED WILL BE DISTRIBUTED ON MARCH FOURTEENTH TO STOCK OF RECORD FEBRUARY TWENTY SECOND THE MAKER OF AUTOMOTIVE AND AEROSPACE PRODUCTS AND ENGINEERED MATERIALS BASED IN MORRIS TOWNSHIP N. J. SAID IT INTENDS TO RAISE ITS QUARTERLY COMMON STOCK DIVIDEND TO THIRTY THREE POINT FIVE CENTS A SHARE ON A PRESPLIT BASIS TO BE PAID BEGINNING WITH THE SECOND QUARTER PAYMENT THE NET EFFECT IS THAT BY THE END OF THE SECOND QUARTER EACH SHAREHOLDER WILL HAVE TWICE AS MANY SHARES WITH EACH SHARE PAYING A DIVIDEND OF SIXTEEN POINT SEVEN FIVE CENTS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ALLIEDSIGNAL STOCK CLOSED YESTERDAY AT SEVENTY SEVEN POINT THREE SEVEN FIVE DOLLARS UP ONE DOLLAR AND FIFTY CENTS LAWRENCE A. BOSSIDY CHAIRMAN SAID THE STOCK SPLIT AND THE DIVIDEND ACTION REFLECT THE IMPROVED NINETEEN NINETY THREE PERFORMANCE AND QUOTE OUR CONFIDENCE THAT IN NINETEEN NINETY FOUR WE WILL AGAIN DELIVER STRONG EARNINGS GROWTH AND POSITIVE CASH FLOW QUOTE MR. BOSSIDY SAID IN AN INTERVIEW THAT HE EXPECTS NINETEEN NINETY FOUR PROFIT TO INCREASE THIRTEEN PERCENT TO SEVENTEEN PERCENT WHICH WILL BRING PER SHARE NET INCOME TO FIVE DOLLARS AND TWENTY THREE CENTS TO FIVE DOLLARS AND FORTY TWO CENTS THAT WILL COMPARE WITH THE FOUR DOLLARS AND SIXTY THREE CENTS A SHARE BEFORE ACCOUNTING CHANGES REPORTED YESTERDAY FOR NINETEEN NINETY THREE HE ESTIMATED NINETEEN NINETY FOUR SALES WILL INCREASE FOUR PERCENT TO SIX PERCENT THE LATEST FOURTH QUARTER RESULTS BROUGHT NET INCOME FOR ALL OF NINETEEN NINETY THREE TO SIX HUNDRED FIFTY SIX MILLION DOLLARS A TWENTY THREE PERCENT INCREASE FROM THE FIVE HUNDRED THIRTY FIVE MILLION DOLLARS OR THREE DOLLARS AND EIGHTY CENTS A SHARE BEFORE ACCOUNTING CHANGES ADOPTED IN BOTH YEARS AFTER THE ACCOUNTING CHARGES NINETEEN NINETY THREE NET INCOME WAS FOUR HUNDRED ELEVEN MILLION DOLLARS OR TWO DOLLARS AND NINETY CENTS A SHARE COMPARED WITH A NINETEEN NINETY TWO LOSS OF SEVEN HUNDRED TWELVE MILLION DOLLARS OR FIVE DOLLAR AND FIVE CENT SHARE SALES IN NINETEEN NINETY THREE DECLINED TWO PERCENT TO ELEVEN POINT EIGHT THREE BILLION DOLLARS FROM TWELVE POINT OH FOUR BILLION DOLLARS A YEAR EARLIER THE SHARPLY IMPROVED PERFORMANCE IN NINETEEN NINETY THREE LARGELY REFLECTS THE SUCCESS OF MR. BOSSIDY'S RESTRUCTURING OF THE COMPANY WHICH HE INSTITUTED SOON AFTER HE TOOK OVER ON JULY FIRST NINETEEN NINETY ONE AS CHIEF EXECUTIVE OFFICER WE HAVE A SOLID FOUNDATION NOW HE SAID ADDING THAT THE OVERHAUL WILL MAKE FURTHER PAYOFFS THIS YEAR MCDONALD'S CORPORATION IS TESTING A WALKUP SNACK BAR IN DOWNTOWN ATLANTA AS PART OF ITS PLANS TO DEVELOP MORE NONTRADITIONAL FAST FOOD OUTLETS THE STAND SIMILAR TO A RESTAURANT DRIVE THRU WINDOW OFFERS A LIMITED MENU INCLUDING HAMBURGERS AND FRENCH FRIES AS WELL AS FOOD NOT USUALLY ASSOCIATED WITH MCDONALD'S LIKE HOT DOGS CALLED THE QUOTE CLASSIC QUOTE WITHIN THE COMPANY THE OUTLET FEATURES NINETEEN FIFTIES MCDONALD'S DECOR WITH RED AND WHITE TILES AND LARGE ARCHES OVERHEAD THE TREASURY PLANS TO PAY DOWN ONE POINT SEVEN EIGHT BILLION DOLLARS ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT TWENTY FOUR POINT FOUR BILLION DOLLARS IN SHORT TERM BILLS MATURING BILLS OUTSTANDING TOTAL TWENTY SIX POINT ONE EIGHT BILLION DOLLARS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN THIRTEEN WEEK AND TWENTY SIX WEEK BILLS MATURING MAY NINETEENTH AND AUGUST EIGHTEENTH RESPECTIVELY THE CUSIP NUMBER FOR THE THREE MONTH BILLS IS NINE ONE TWO SEVEN NINE FOUR K. SIXTY THE CUSIP NUMBER FOR THE SIX MONTH BILLS IS NINE ONE TWO SEVEN NINE FOUR M. EIGHTY FOUR NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM TEN THOUSAND DOLLAR DENOMINATIONS MUST BE RECEIVED BY NOON E. S. T. MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY ONE P. M. E. S. T. BOOSTED BY LOWER INTEREST COSTS TWO SUPERMARKET CHAINS SAFEWAY INCORPORATED AND KROGER COMPANY POSTED INCREASED EARNINGS FOR THE FOURTH PERIOD DESPITE SLOWER SALES SAFEWAY SAW FOURTH QUARTER EARNINGS RISE SHARPLY BECAUSE OF LOWER ADMINISTRATIVE COSTS AND INTEREST EXPENSE KROGER REPORTED A FIFTY SIX PERCENT JUMP IN FOURTH QUARTER EARNINGS PARTLY REFLECTING IMPROVED SALES DURING THE HOLIDAY PERIOD REDUCED COSTS AND LOWER INTEREST EXPENSE FOR THE QUARTER ENDED JANUARY FIRST SAFEWAY BASED IN OAKLAND CALIFORNIA POSTED NET INCOME OF FORTY SIX POINT NINE MILLION DOLLARS OR THIRTY EIGHT CENTS A SHARE COMPARED WITH YEAR EARLIER NET INCOME OF TWENTY TWO POINT TWO MILLION DOLLARS OR NINETEEN CENTS A SHARE SALES IN THE QUARTER WERE FOUR POINT SEVEN OH BILLION DOLLARS DOWN THREE POINT ONE PERCENT FROM FOUR POINT EIGHT FIVE BILLION DOLLARS A YEAR AGO IN THE MOST RECENT FOURTH QUARTER EARNINGS WERE REDUCED BY EIGHT POINT SEVEN MILLION DOLLARS OR SEVEN CENTS A SHARE BECAUSE OF RESTRUCTURING CHARGES IN THE YEAR AGO PERIOD RESTRUCTURING CHARGES REDUCED NET INCOME BY THIRTEEN POINT EIGHT MILLION DOLLARS OR TWELVE CENTS A SHARE OPERATING AND ADMINISTRATIVE EXPENSES DURING THE QUARTER FELL TO TWENTY THREE POINT EIGHT PERCENT OF SALES FROM TWENTY FIVE POINT TWO PERCENT A YEAR AGO INTEREST EXPENSE DROPPED TO SEVENTY SEVEN POINT SIX MILLION DOLLARS FROM EIGHTY EIGHT POINT NINE MILLION DOLLARS FOR THE YEAR SAFEWAY POSTED NET INCOME OF ONE HUNDRED TWENTY THREE POINT THREE MILLION DOLLARS OR ONE DOLLAR A SHARE COMPARED WITH PROFIT BEFORE EXTRAORDINARY ITEMS AND ACCOUNTING CHANGES OF NINETY EIGHT POINT FOUR MILLION DOLLARS OR EIGHTY THREE CENTS A SHARE IN THE PREVIOUS YEAR CHARGES FOR EARLY RETIREMENT OF DEBT AND ACCOUNTING CHANGES RESULTED IN NET INCOME OF FORTY THREE POINT FIVE MILLION DOLLARS OR THIRTY SEVEN CENTS A SHARE SAFEWAY'S MOST RECENT FULL YEAR EARNINGS WERE REDUCED BY THIRTY POINT TWO MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE BECAUSE OF SEVERANCE COSTS RELATED TO A VOLUNTARY EMPLOYEE BUYOUT PROGRAM AT ITS ALBERTA CANADA DIVISION KROGER BASED IN CINCINNATI POSTED NET INCOME OF EIGHTY TWO POINT SEVEN MILLION DOLLARS OR SEVENTY SIX CENTS A SHARE UP FROM FIFTY THREE POINT ONE MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE A YEAR AGO THE SUPERMARKET CHAIN RECORDED AN EXTRAORDINARY LOSS OF THREE POINT EIGHT MILLION DOLLARS IN THE NINETEEN NINETY THREE QUARTER AND A SIMILAR LOSS OF FIFTEEN POINT SIX MILLION DOLLARS IN THE NINETEEN NINETY TWO QUARTER FOR THE AFTER TAX EFFECT OF THE EARLY RETIREMENT OF DEBT WITHOUT THE ITEM EARNINGS ROSE TWENTY SIX PERCENT TO EIGHTY SIX POINT FIVE MILLION DOLLARS UP FROM SIXTY EIGHT POINT EIGHT MILLION DOLLARS KROGER'S SALES TOTALED FIVE POINT FOUR BILLION DOLLARS COMPARED WITH FIVE POINT SEVEN BILLION DOLLARS IN THE NINETEEN NINETY TWO FOURTH QUARTER WHICH CONTAINED AN EXTRA WEEK AFTER ADJUSTING FOR THE EXTRA WEEK AND EXCLUDING SALES FROM THE COMPANY'S SAN ANTONIO STORES WHICH WERE SOLD IN NINETEEN NINETY THREE SALES ROSE THREE POINT EIGHT PERCENT IN THE LATEST FOURTH QUARTER PRICES FOR GOODS AND SERVICES INCREASED AN AVERAGE ONE POINT SIX PERCENT IN JANUARY THE STATE NEWS AGENCY PAP REPORTED CITING A FINANCE MINISTRY SPOKESMAN THE GROWTH OF CONSUMER PRICES IN JANUARY SLOWED FROM LAST NOVEMBER AND DECEMBER WHEN PRICES ROSE BY FOUR PERCENT AND FIVE POINT SEVEN PERCENT RESPECTIVELY CONSUMER PRICES ROSE THIRTY SEVEN POINT SIX PERCENT IN DECEMBER FROM THE YEAR EARLIER MONTH SCHERING PLOUGH CORPORATION SAID ITS WESLEY JESSEN VISION CARE UNIT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET ITS QUOTE FRESHLOOK QUOTE LINE OF DISPOSABLE CONTACT LENSES SCHERING SAID THE LENSES IN FOUR OPAQUE COLORS AND CLEAR WILL BE AVAILABLE BY MIDYEAR IN MOST AREAS OF THE U. S. SCHERING IS A PHARMACEUTICAL AND HEALTH CARE PRODUCTS COMPANY U. K. SHIPPING AND TRANSPORT GROUP PENINSULAR AND ORIENTAL STEAM NAVIGATION COMPANY SAID YESTERDAY THAT ITS LOS ANGELES BASED SUBSIDIARY PRINCESS CRUISES HAS ORDERED TWO SUPERLINERS COSTING A TOTAL OF SIX HUNDRED EIGHTY MILLION DOLLARS FOR SERVICE IN NORTH AMERICA THE ORDER WAS PLACED WITH FINCANTIERI AN ITALIAN YARD THAT HAS WORKED WITH P. AND O. IN THE PAST DELIVERY OF THE SHIPS IS DUE IN NINETEEN NINETY SEVEN THE SNOWBANKS ARE HIGHER THAN HER HEAD AND ARCTIC WINDS HOWL OUTSIDE HER WINDOW BUT WHEN DEBRA MEESE ZIPS UP HER INSULATED ONE PIECE SUIT AND PULLS ON HER MUKLUKS SHE ISN'T GOING OUTSIDE DOCTOR MEESE WALKS DOWN THE HALL AT THE COLD REGIONS RESEARCH AND ENGINEERING LABORATORY AND OPENS A HUGE REFRIGERATOR DOOR TO A ROOM KEPT AT TWENTY DEGREES BELOW ZERO WHERE TUBES OF ICE FROM THE GREENLAND ICE CAP ARE STORED IN THIS FRIGID ROOM DOCTOR MEESE HUNTS FOR CLUES ABOUT GLOBAL WARMING ONE OF THE TEAM OF U. S. SCIENTISTS THAT DRILLED A TEN THOUSAND FOOT ICE CORE IN GREENLAND THE THIRTY SIX YEAR OLD GLACIOLOGIST IS TRYING TO CREATE THE MOST DETAILED HISTORY OF WORLD CLIMATE YET SHE IS AMUSED THAT HER CHILDHOOD FASCINATION WITH ANTARCTICA HAS LED HER TO THE DEBATE ABOUT WHETHER THE EARTH'S CLIMATE IS HEATING UP TO DANGEROUS LEVELS QUOTE ONE THING ABOUT SCIENCE YOU NEVER KNOW WHAT WILL BE THE NEXT HOT TOPIC QUOTE SHE SAYS DOCTOR MEESE AND HER COLLEAGUE AT THE LAB TONY GOW A SIXTY TWO YEAR OLD NEW ZEALANDER WORKED IN CENTRAL GREENLAND THE PAST THREE SUMMERS DRILLING A HOLE SEVENTEEN MILES WEST OF A TEAM OF EUROPEAN SCIENTISTS THE EUROPEANS DRILLED FASTER AND LAST SUMMER THEY CONCLUDED THAT GLOBAL TEMPERATURE CAN RISE MUCH FASTER THAN HAD BEEN PREVIOUSLY IMAGINED BASED ON CALCULATIONS OF THE RATIOS BETWEEN TWO TYPES OF OXYGEN ISOTOPES PRESENT IN THE ICE THE U. S. SCIENTISTS CONFIRMED THE EUROPEAN DISCOVERY THAT DURING THE LAST ICE AGE GLOBAL TEMPERATURES REPEATEDLY SHOT UP BY MORE THAN NINE DEGREES IN LESS THAN TWENTY YEARS BEFORE FALLING GRADUALLY AGAIN BUT THEY COULDN'T FIND EVIDENCE OF THE EUROPEANS' CONCLUSION THAT SIMILAR SHARP SUDDEN INCREASES OCCURRED DURING THE EEMIAN PERIOD BEFORE THE LAST ICE AGE MORE THAN EIGHTY FIVE THOUSAND YEARS AGO AS THE EARTH CURRENTLY IS NOT IN AN ICE AGE WHAT OCCURRED DURING THE EEMIAN PERIOD IS CRUCIAL TO UNDERSTANDING WHETHER SHARP WARM UPS COULD OCCUR EVEN IN TEMPERATE PERIODS SUCH AS OUR OWN IF THE EUROPEAN CONCLUSIONS ARE RIGHT THEY MIGHT INDICATE THAT THE WORLD COULD BE SUBJECT TO VOLATILE AND DEVASTATING TEMPERATURE RISES A NINE DEGREE RISE IN GLOBAL TEMPERATURES WOULD MELT ICE CAPS FLOOD COASTAL CITIES AND DESTROY SOME VEGETATION IN TEMPERATE REGIONS THE EUROPEAN INTERPRETATION ALSO ADDED WEIGHT TO THE ARGUMENT FOR CONTROLLING MAN MADE WARMING EFFECTS SUCH AS THE EMISSION OF GASES FROM BURNING FOSSIL FUEL ICE CORE DATING IS EXOTIC STUFF FOR THE COLD REGIONS LAB WHICH IS PART OF THE U. S. ARMY CORPS OF ENGINEERS SAYS GEORGE ASHTON CHIEF OF RESEARCH LAB ENGINEERS DEVELOP ANTIFREEZE FOR POURING CONCRETE IN SUBFREEZING TEMPERATURES AND STUDY HOW SNOW AFFECTS THE INFRARED SENSORS ON SMART WEAPONS THE LAB'S BIGGEST ENGINEERING TRIUMPH WAS CONVINCING THE ARMY THAT KNOBBY JEEP TIRES DIDN'T PROVIDE BETTER TRACTION IN SNOW THAN REGULAR TIRES SAVING MILLIONS OF DOLLARS THE LAB HAS FORTY P. H. D.S AND THREE HUNDRED OTHER WORKERS IT KEEPS ITS REFRIGERATORS HUMMING SO THEY CAN FREEZE GIANT CHESTS OF SOIL OR CHILL HUGE SCALE MODELS OF FLUMES AND RIVERS BUT THE CORPS OF ENGINEERS ALSO HAS A LONG INVOLVEMENT WITH GREENLAND WHERE IT HELPED DESIGN RADAR STATIONS THAT COULD SURVIVE THE FAR NORTH AND MORE RECENTLY DRILLED ICE CORES THE TEAM TO WHICH DOCTOR MEESE BELONGS CAME UP WITH SOME CONCLUSIONS ABOUT TEMPERATURE THAT DIVERGE SHARPLY FROM THE EUROPEANS WE DIDN'T SEE THE SHARP CHANGES DURING THE EEMIAN PERIOD SAYS DOCTOR MEESE SHE ASSERTS THAT THE ICE CORE RECORD AT THAT DEPTH IS TOO DEFORMED TO PROVIDE GOOD INFORMATION ON THE EEMIAN CLIMATE DOCTOR MEESE HAS SUPERVISED WHAT SHE SAYS WAS A MORE PAINSTAKING VISUAL COUNT USING LASERS AND ELECTRICAL CONDUCTIVITY MEASURES TO COUNT THE YEARS ACCORDING TO EMBEDDED DUST WHICH IS SCATTERED MORE HEAVILY DURING THE SUMMER DOCTOR MEESE ASKS HOW CAN YOU PUT IT IN A TIME FRAME WHEN YOU HAVE AN OVERTURNED FOLD IN AN ICE LAYER WHEN THE EUROPEAN SCIENTISTS HAD A DEFORMATION THEY DIDN'T TAKE AS DETAILED A LOOK SHE SAYS DOCTOR WILLI DANSGAARD OF THE UNIVERSITY OF COPENHAGEN THE MAN WHO DISCOVERED THE PATTERN OF REPEATED SHARP TEMPERATURE INCREASES SAYS HIS INVESTIGATION OF THE EUROPEAN ICE CORE INDICATES IT ISN'T DEFORMED UNTIL A LEVEL MUCH DEEPER THAN THE AMERICAN CORE IT COULD BE THAT THE EUROPEAN CORE IS DEFORMED ALSO BUT WE SEE NO EVIDENCE OF IT HE SAYS HE ADDS THAT THE EUROPEANS QUOTE EXAMINED EVERY INCH OF THE CORE VERY CLOSELY QUOTE FINDING NO DEFORMATIONS DOWN TO THE NINE THOUSAND FOUR HUNDRED FIVE FOOT DEPTH THAT HE SAYS CORRESPONDS TO ONE HUNDRED THIRTY THOUSAND YEARS AGO NEAR THE DAWN OF THE EEMIAN PERIOD DOCTOR MEESE SAYS THE U. S. SCIENTISTS HAVE BUILT THE MOST DETAILED TIME LINE OF GLOBAL WEATHER YET CONSTRUCTED IT GOES BACK EIGHTY FIVE THOUSAND YEARS TO THE DAWN OF THE LAST ICE AGE CORRELATING THEIR TIME LINE WITH RECORDS OF SEABED SEDIMENTS VOLCANIC ACTIVITY CORALREEF GROWTH BRISTLECONE PINE RINGS AND CARBON DATING IS IMPROVING THE PRECISION OF DATING PREHISTORIC AND EVEN HISTORIC CLIMATIC EVENTS IN ONE OF THE COLD ROOMS DOCTOR MEESE SLICES THIN STRIPS OF ICE OFF THE CYLINDERS WITH A BAND SAW AND MOUNTS THEM ON GLASS FOR VIEWING THROUGH PLASTIC POLARIZED SHEETS A MOSAIC OF LARGE BLUE BLACK RED AND YELLOW POLYGONS APPEARS REVEALING CRYSTALS OF SNOW THAT FELL SOME SEVENTY FIVE THOUSAND YEARS AGO AND HAVE BEEN PACKED DOWN YEAR BY YEAR EVER SINCE IN GREENLAND SCIENTISTS DATED THE ICE FROM THE SIX FOOT LONG FIVE INCH DIAMETER CORES BY GAUGING THINGS LIKE ELECTRICAL CONDUCTIVITY WHICH DIFFERS FROM SUMMER TO WINTER BECAUSE SUMMER SNOW IS MORE ACIDIC BUT THEIR EYES UNEXPECTEDLY TURNED OUT TO BE THE MOST ACCURATE INSTRUMENTS WE THOUGHT WE'D JUST BE ABLE TO SEE LAYERS FOR A FEW HUNDRED METERS SAYS DOCTOR MEESE IT TURNED OUT LAYERS WERE VISIBLE DOWN ALMOST NINE THOUSAND FEET OR EIGHTY FIVE THOUSAND YEARS WHERE A YEAR'S SNOWFALL WAS COMPRESSED TO A SINGLE CENTIMETER THE ICE AGE PERIOD WAS FORTY TIMES MORE DUSTY THAN THE CURRENT HOLOCENE PERIOD SO THE SUMMER DUST STORMS THAT DEPOSIT CLOUDY BANDS ARE STILL VISIBLE IN THE ASTOUNDINGLY CLEAR DEEP ICE SAYS DOCTOR GOW EVEN SO AT GREATER DEPTHS WHERE THE ICE WAS COMPRESSED BELOW GROWING TONS OF SNOW THEY ADMIT THEY MAY HAVE MISSED A YEAR HERE AND THERE DOCTORS MEESE AND GOW HAVE CORRELATED THE VARIOUS MEASURES TO ARRIVE AT A YEAR BY YEAR RECORD THAT SPANS EIGHT HUNDRED FIFTY CENTURIES WITH A TEN PERCENT ERROR RATE THE SCIENTISTS HOPE TO GO TO COPENHAGEN WHERE THE EUROPEAN CORE IS STORED AND STUDY IT BUT THEY FEAR IT MAY HAVE DETERIORATED IN THE YEAR AND A HALF SINCE IT WAS PULLED FROM THE ICE CAP AIRGAS INCORPORATED A UNIT OF B. O. C. GROUP INCORPORATED OF ENGLAND COMPLETED THE ACQUISITION OF THE CALIFORNIA AND NEVADA RETAIL INDUSTRIAL GAS AND WELDING SUPPLY OPERATIONS OF BIRMINGHAM ALABAMA BASED AIRCO GAS AND GEAR COMPANY TERMS WEREN'T DISCLOSED THE ACQUIRED BUSINESS HAS ANNUAL SALES OF ABOUT FORTY EIGHT MILLION DOLLARS AIRGAS HAS ANNUAL SALES IN EXCESS OF FIVE HUNDRED FIFTY MILLION DOLLARS AIRGAS INCORPORATED BASED IN RADNOR PENNSYLVANIA COMPLETED ITS ACQUISITION OF CERTAIN BUSINESSES OF AIRCO GAS AND GEAR COMPANY A UNIT OF B. O. C. GROUP INCORPORATED AN ARTICLE YESTERDAY INCORRECTLY SAID AIRGAS WAS A UNIT OF B. O. C. GROUP THE U. S. AND FRANCE WILL ASK NATO TO SET AN EARLY DEADLINE FOR THE WITHDRAWAL OF ALL HEAVY WEAPONS FROM AROUND SARAJEVO AND BACK IT UP WITH THE THREAT OF AIR STRIKES AT THE SAME TIME THE CLINTON ADMINISTRATION WILL TRY TO BOLSTER THE BOSNIAN MUSLIMS' DIPLOMATIC HAND AND REVIVE THE NEAR MORIBUND NEGOTIATING PROCESS BY OFFERING TO PLAY A NEW QUOTE HIGH PROFILE ROLE QUOTE IN PEACE TALKS THE U. S. DISPATCHED TWO TOP OFFICIALS TO EUROPE LAST NIGHT TO OUTLINE THE NEW DIPLOMATIC INITIATIVE WHICH INCLUDES SENDING A SPECIAL U. S. ENVOY TO SARAJEVO TO HELP THE MUSLIM GOVERNMENT CRAFT A PEACE PROPOSAL THAT THEN WOULD BE CHAMPIONED BY THE U. S. THE U. S. FRENCH PROPOSAL FOR ENDING THE SIEGE OF SARAJEVO WOULD GIVE THE BOSNIAN SERBS AND THE MUSLIM LED GOVERNMENT ABOUT A WEEK TO WITHDRAW THEIR ARTILLERY MORTARS AND TANKS OR FACE ALLIED AIR STRIKES IN PRACTICE HOWEVER THE SERBS WHO HAVE THE OVERWHELMING MAJORITY OF THE FIREPOWER AND WHO HAVE BEEN DOING MOST OF THE KILLING WOULD BEAR THE BRUNT OF THE DEMAND THE PROPOSAL WILL BE PRESENTED TODAY IN BRUSSELS AT A MEETING OF THE NORTH ATLANTIC COUNCIL THE POLITICAL ARM OF THE NORTH ATLANTIC TREATY ORGANIZATION NATO HAS THREATENED AIR STRIKES BEFORE BUT FAILED TO FOLLOW THROUGH MAINLY BECAUSE OF FEARS OF PROVOKING SERBIAN RETALIATION AGAINST EUROPEAN AND CANADIAN PEACEKEEPERS ANGER OVER LAST WEEKEND'S SLAUGHTER OF SIXTY EIGHT PEOPLE IN A SARAJEVO MARKET HAS GONE A GOOD WAY TO SHIFT OPINION IN THE ALLIANCE BUT U. S. OFFICIALS ACKNOWLEDGED THAT THE PLAN COULD BE RADICALLY ALTERED OR EVEN REJECTED TODAY THE U. S. IS HOPING THAT ITS DIPLOMATIC INITIATIVE WILL STRENGTHEN ITS CREDIBILITY AMONG THE ALLIES AND BOLSTER THE JOINT PROPOSAL FRANCE WHICH ORIGINATED THE PROPOSAL FOR SECURING SARAJEVO COULD PROVE EVEN MORE PERSUASIVE FOREIGN MINISTER ALAIN JUPPE THREATENED TO WITHDRAW FRENCH PEACEKEEPERS FROM BOSNIA UNLESS NATO AGREED ON SPECIFIC AND FORCEFUL ACTION AS PART OF THE JOINT PROPOSAL U. S. OFFICIALS SAY THE BOSNIAN GOVERNMENT WOULD BE ALLOWED TO PLACE THEIR HEAVY WEAPONS UNDER UNITED NATIONS MONITORING WHILE THE SERBS WOULD BE REQUIRED TO WITHDRAW THEIR WEAPONS ALTOGETHER THERE IS NO CHANCE THAT THE MUSLIMS WOULD BE THE FIRST TO BE PUNISHED FOR ANY VIOLATION SAID A SENIOR U. S. OFFICIAL THE U. S. ALSO WILL OFFER TO PROVIDE SPECIAL RADAR TO U. N. FORCES TO MONITOR THE WITHDRAWAL OF THE WEAPONS AND TO PINPOINT THE SOURCE OF ANY SHELLING U. S. OFFICIALS WERE HOPING THAT THE APPEARANCE OF EVEN HANDEDNESS WOULD DEFUSE RUSSIAN OBJECTIONS TO THE THREAT OF NATO AIR STRIKES AGAINST SERBS AS OF LAST NIGHT BRITAIN WAS BELIEVED TO BE LEANING IN FAVOR OF THE PROPOSAL WHILE CANADA WAS STILL FIRMLY OPPOSED TO ADDRESS THEIR CONCERNS NATO PLANNERS HAVE BEEN WORKING TO COME UP WITH A WAY TO BETTER PROTECT LIGHTLY ARMED PEACEKEEPERS ONE SENIOR U. S. OFFICIAL DESCRIBED THE APPROACH ON THE GROUND AS SIMPLY HUNKERING DOWN FOR AWHILE EVEN THEN OFFICIALS ACKNOWLEDGED THERE COULD BE HEATED DEBATE AT TODAY'S MEETING ABOUT A VARIETY OF ISSUES INCLUDING THE TIMING OF THE DEADLINE OR EVEN WHETHER TO SET A DEADLINE AS WELL AS THE DISTANCE FOR WITHDRAWAL OF THE WEAPONRY AS OF LAST NIGHT THE U. S. FRENCH PROPOSAL WOULD HAVE THE WEAPONS WITHDRAWN ABOUT TWELVE MILES BEYOND THE CENTER OF SARAJEVO WITH A DEADLINE OF SEVEN TO TEN DAYS IN WASHINGTON YESTERDAY SAM NUNN D. GEORGIA SENATE ARMED SERVICES COMMITTEE CHAIRMAN WARNED THAT THE U. S. NEEDS TO CONSIDER MILITARY ACTIONS BEYOND ANY AIR STRIKES YOU HAVE TO BE PREPARED TO TAKE OTHER STEPS HE SAID THEY MAY RETALIATE NOBODY KNOWS WHAT WILL HAPPEN AFTER THE FIRST STRIKE QUOTE UNTIL NOW THE U. S. HAS RESISTED EUROPEAN DEMANDS TO GET MORE INVOLVED IN THE NEGOTIATIONS SAYING THEY WOULDN'T FORCE THE MUSLIMS TO ACCEPT ANY PLAN BUT THE U. S. ALSO IS EXPECTED TO WARN THE MUSLIMS THAT THEIR BATTLEFIELD GAINS IN RECENT WEEKS CAN'T LAST IN THE FACE OF SUPERIOR CROAT AND SERBIAN FORCES WE'RE GOING TO TELL THE MUSLIMS THAT THEY'VE GOT A GREAT OPPORTUNITY HERE AND THEY'VE GOT TO SEIZE IT SAID A SENIOR PENTAGON OFFICIAL I WOULDN'T CALL IT PRESSURE BUT WE'RE GOING TO ENCOURAGE THEM TO COME UP WITH A BOTTOM LINE AND WE'RE GOING TO SAY TO THE SERBS TAKE IT OR EXPECT THE WORST AND WE'LL SAY TO THE CROATS TAKE IT OR WE'LL PUT YOU IN THE SANCTIONS THOMAS E. RICKS CONTRIBUTED TO THIS ARTICLE RICKI TIGERT REMOVED HERSELF FROM ANY REGULATORY MATTER CONCERNING PRESIDENT AND HILLARY RODHAM CLINTON IN ORDER TO HEAD OFF GROWING REPUBLICAN OPPOSITION TO HER NOMINATION TO HEAD THE FEDERAL DEPOSIT INSURANCE CORPORATION MS. TIGERT'S ACTION HEADS OFF A POTENTIALLY MESSY CONFRONTATION BETWEEN SENATE REPUBLICANS AND DEMOCRATS OVER THE ABILITY OF THE F. D. I. C. TO INVESTIGATE THE CLINTONS' CONNECTION TO MADISON GUARANTY SAVINGS AND LOAN A FAILED ARKANSAS THRIFT AS A RESULT SENATE ACTION ON MS. TIGERT'S NOMINATION IS EXPECTED TO PROCEED WITHOUT BECOMING A PLATFORM FOR REPUBLICAN CHARGES ABOUT THE CLINTONS' BUSINESS AND POLITICAL DEALINGS WITH MADISON GUARANTY DURING MS. TIGERT'S CONFIRMATION HEARING LAST WEEK TWO REPUBLICANS ON THE SENATE BANKING COMMITTEE LAUCH FAIRCLOTH OF NORTH CAROLINA AND ALFONSE D'AMATO OF NEW YORK CITED NEWS ACCOUNTS OF MS. TIGERT'S FRIENDSHIP WITH MRS. CLINTON AND ASKED HER TO RECUSE HERSELF OF ANY F. D. I. C. MATTER INVOLVING THE PRESIDENT AND HIS WIFE MS. TIGERT REFUSED SAYING ONLY THAT SHE WOULD FOLLOW THE ADVICE OF F. D. I. C. ETHICS COUNSELORS ON ANY MATTER INVOLVING A POTENTIAL CONFLICT SHE TOLD FRIENDS THAT SHE HAD ONLY A CASUAL RELATIONSHIP WITH THE CLINTONS AND THAT SHE WAS RELUCTANT TO AGREE TO A BLANKET RECUSAL IN ADVANCE BUT OVER THE WEEKEND SHE LEARNED THAT SENATE REPUBLICANS WERE LOOKING FOR WAYS TO BLOCK HER NOMINATION UNLESS SHE RECUSED HERSELF FROM ISSUES THAT COULD INVOLVE THE CLINTONS TO END CONCERNS ABOUT CONFLICTS OF INTEREST SHE DECIDED ON THE RECUSAL IN A LETTER TO SENATOR D'AMATO MS. TIGERT SAID QUOTE I HAVE NO SUCH PERSONAL KNOWLEDGE OF ANY SUCH MATTER OTHER THAN WHAT I HAVE READ IN THE PRESS BUT I AM VERY MINDFUL OF THE CONCERNS YOU HAVE RAISED I WANT TO RESOLVE THIS ISSUE AS EXPEDITIOUSLY AS POSSIBLE SHE INCLUDED A NOTARIZED STATEMENT SAYING THAT IF CONFIRMED SHE WOULD RECUSE HERSELF FROM PARTICIPATION IN ANY F. D. I. C. INVESTIGATION INQUIRY OR DETERMINATION CONCERNING PRESIDENT OR MRS. CLINTON IN THEIR PERSONAL CAPACITIES ASKED ABOUT THE LETTER MR. D'AMATO SAID THAT IT'S HELPFUL TO DISPEL CONCERNS RAISED ABOUT HER INDEPENDENCE WHILE THE F. D. I. C. IS INVESTIGATING MATTERS THAT INVOLVE THE CLINTONS IN FACT THE F. D. I. C. IS ONLY MARGINALLY INVOLVED IN THE MADISON GUARANTY AFFAIR WHICH IS BEING INVESTIGATED BY AN INDEPENDENT COUNSEL THE AGENCY HIRED ROSE LAW FIRM OF LITTLE ROCK TO SUE AN ACCOUNTING FIRM THAT HAD DONE WORK FOR MADISON BEFORE IT FAILED MRS. CLINTON WAS A PARTNER IN THE ROSE FIRM AND WAS AT ONE TIME RETAINED TO DO LEGAL WORK FOR MADISON NOW THE F. D. I. C. IS TRYING TO DECIDE IF THE FIRM ACCURATELY INFORMED THE AGENCY OF ITS CONNECTIONS TO MADISON THE AGENCY'S REPORT IS EXPECTED IN SEVERAL DAYS THE CHICAGO TRIBUNE REPORTED LAST WEEK THAT MRS. CLINTON HAD REPRESENTED THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION A NOW DEFUNCT AGENCY IN NEGOTIATIONS WITH A FRIEND AND POLITICAL SUPPORTER OF MR. CLINTON'S WHEN HE WAS GOVERNOR OF ARKANSAS BUT YESTERDAY AFTER LOOKING INTO THE REPORT F. D. I. C. SPOKESMAN ALAN WHITNEY SAID THE NEWSPAPER HAD MISCHARACTERIZED MRS. CLINTON'S ROLE THE BEST WE CAN TELL MRS. CLINTON WASN'T INVOLVED IN THE SETTLEMENT HE SAID SEPARATELY G. O. P. SENATORS STEPPED UP THEIR EFFORTS TO PRESS THE RESOLUTION TRUST CORPORATION WHICH SELLS OFF THE ASSETS OF FAILED THRIFTS TO TAKE ACTION AGAINST THE PEOPLE CONNECTED WITH THE FAILURE OF MADISON GUARANTY BEFORE THE STATUTE OF LIMITATIONS RUNS OUT FOR CIVIL ACTIONS THE STATUTE EXPIRES ON FEBRUARY TWENTY EIGHTH FORTY REPUBLICAN SENATORS SIGNED A LETTER TO DEPUTY TREASURY SECRETARY ROGER ALTMAN THE INTERIM HEAD OF THE R. T. C. ASKING WHAT THE R. T. C. IS DOING TO FILE CIVIL CLAIMS AGAINST PEOPLE WHO MAY HAVE BEEN RESPONSIBLE FOR MADISON GUARANTY'S FAILURE OR TO WIN AGREEMENTS EXTENDING THE STATUTE OF LIMITATIONS MADISON GUARANTY'S FAILURE COST THE GOVERNMENT FORTY SEVEN MILLION DOLLARS AND THE R. T. C. COULD FILE SUITS TO RECOVER SOME OF THAT MONEY ONE QUESTION THE REPUBLICANS WANT ANSWERED IS WHETHER ANY BUSINESS OR POLITICAL DEALINGS BETWEEN THE THRIFT AND THE CLINTONS MAY HAVE CONTRIBUTED TO THE THRIFT'S FAILURE REPRESENTATIVE JAMES LEACH R. IOWA CONTENDS THAT THERE MAY BE SUCH A CONNECTION WHITE HOUSE OFFICIALS DISMISS THIS SUGGESTION AS RIDICULOUS MR. ALTMAN A LONGTIME FRIEND OF MR. CLINTON'S HAS SAID THAT THE R. T. C. QUOTE IS CONDUCTING A THOROUGH REVIEW OF THE POTENTIAL CIVIL CLAIMS QUOTE RELATED TO MADISON MCGRAW HILL INCORPORATED NEW YORK ROBERT E. EVANSON FIFTY SEVEN YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF FINANCE AND OPERATIONS FOR THE EDUCATIONAL AND PROFESSIONAL PUBLISHING GROUP OF THIS INFORMATION AND PUBLISHING SERVICES COMPANY A NEW POSITION MR. EVANSON WAS MOST RECENTLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT MACMILLAN SLASH MCGRAW HILL SCHOOL PUBLISHING COMPANY BRITISH TELECOMMUNICATIONS P. L. C. TOOK ANOTHER SWIPE AT MERCURY COMMUNICATIONS LIMITED CUTTING TELEPHONE CHARGES BY ABOLISHING HIGHER RATES FOR PERIODS OF PEAK DEMAND IN A MOVE THAT IS SEEN PUTTING FURTHER PRESSURE ON THE CABLE AND WIRELESS P. L. C. UNIT THE CHANGE IS SEEN BITING INTO MERCURY'S BUSINESS MARKET BASE WHICH ANALYSTS SAY PROVIDES ALMOST ALL ITS PROFIT AND DEFENDING B. T.'S RESIDENTIAL MARKET SHARE AT THE SAME TIME M. F. S. COMMUNICATIONS COMPANY OF THE U. S. ANNOUNCED PLANS TO ENTER THE LUCRATIVE LONDON HEAVY USE TELEPHONE MARKET IN APRIL INCREASING COMPETITION IN MERCURY'S CORE MARKET MERCURY WHICH IS EIGHTY PERCENT OWNED BY CABLE AND WIRELESS AND TWENTY PERCENT OWNED BY CANADA'S B. C. E. INCORPORATED IMMEDIATELY FOUGHT B. T.'S MOVE SCRAPPING ITS OWN PRIME PERIOD PRICE PREMIUM RATHER THAN LOSE ITS AVERAGE TWENTY PERCENT DISCOUNT TO B. T. PRICES MERCURY CONCEDES THE DISCOUNTING WILL SQUEEZE ITS PROFIT MARGINS QUOTE BUT BY NO MORE THAN WE THOUGHT QUOTE A SPOKESWOMAN SAID B. T.'S PRICE CUTS WERE WIDELY EXPECTED SOME ANALYSTS SAY THE CUTS DO NOTHING MORE THAN COMPLETE THE FIVE HUNDRED MILLION OF CUTS REQUIRED THIS YEAR BY THE GOVERNMENT'S OFFICE OF TELECOMMUNICATIONS ROCHESTER TELEPHONE CORPORATION ROCHESTER N. Y. PLANS TO RAISE ABOUT EIGHTY EIGHT MILLION DOLLARS THROUGH A PUBLIC OFFERING OF TWO POINT ONE MILLION SHARES AT FORTY TWO DOLLARS A SHARE AND TO USE THE PROCEEDS TO EXPAND ITS LINES OF BUSINESS AND FOR CORPORATE USES THE TELEPHONE COMPANY ALSO SAID ITS LARGEST SHAREHOLDER C. FON CORPORATION A UNIT OF SPRINT CORPORATION WILL SELL ITS ENTIRE HOLDINGS OF TWO POINT NINE MILLION SHARES IN ROCHESTER FOR FORTY TWO DOLLARS A SHARE SALOMON BROTHERS INCORPORATED IS THE LEAD UNDERWRITER OF THE OFFERINGS STANDARD AND POOR'S CORPORATION SAID IT AFFIRMED ITS TRIPLE A CLAIMS PAYING ABILITY RATING ON TEACHERS INSURANCE AND ANNUITY ASSOCIATION A LIFE INSURANCE COMPANY WITH ASSETS OF SIXTY SEVEN BILLION DOLLARS S. AND P. SAID ITS RATING REFLECTS T. I. A. A.'S SUPERIOR MARKET POSITION SOLID EARNINGS PERFORMANCE EXCELLENT CAPITALIZATION AND THE LIMITED LIQUIDITY REQUIREMENTS OF ITS LIABILITY STRUCTURE COMBINED WITH ITS COLLEGE RETIREMENT EQUITIES FUND AFFILIATE T. I. A. A. IS THE LARGEST PRIVATE RETIREMENT SYSTEM IN THE NATION WITH ASSETS OF ONE HUNDRED TWENTY EIGHT BILLION DOLLARS AT YEAR END NINETEEN NINETY THREE QUOTE DUE TO THE COMPANY'S MARKET DOMINANCE AND LOW COST STRUCTURE T. I. A. A. HAS CONTINUED TO ENJOY STRONG OPERATING PERFORMANCE RETURN ON ASSETS INCREASED TO ZERO POINT SEVEN NINE PERCENT IN NINETEEN NINETY THREE FROM ZERO POINT FOUR FOUR PERCENT IN NINETEEN NINETY ONE DUE TO THE COMPANY'S ACTIVE DIVIDEND MANAGEMENT DESPITE THE DECLINING INTEREST RATE ENVIRONMENT S. AND P. SAID THE REPORT NOTED HOWEVER THAT T. I. A. A. HAS SUBSTANTIAL INVESTMENTS IN MORTGAGES AND REAL ESTATE AND A HIGH THOUGH DECLINING PROPORTION OF NONINVESTMENT GRADE ISSUES IN ITS BOND PORTFOLIO THE COMPANY'S STRONG CAPITAL BASE AND THE LONG MATURITY OF ITS ANNUITIES OFFSET SUBSTANTIAL LONG TERM RISK S. AND P. ADDED RICHARD BLISS SIXTY FOUR YEARS OLD CHAIRMAN OF THE COMPANY'S EXECUTIVE COMMITTEE WAS NAMED CHIEF EXECUTIVE OFFICER SUCCEEDING FRANCIS CHEN WHO REMAINS A DIRECTOR OF THIS MAKER OF LASERS FOR SURGICAL USE METEOROLOGISTS HAVE DISMISSED ALL THE USUAL SUSPECTS THIS HAS BEEN THE HARSHEST WINTER IN THE U. S. IN MORE THAN A DECADE YESTERDAY'S STORMS DUMPED MORE THAN A FOOT OF SNOW IN STATES FROM CALIFORNIA TO NEW YORK AND METEOROLOGISTS ARE WONDERING WHY THE OLD EXPLANATIONS FOR ABERRANT WEATHER DON'T WORK THIS YEAR THE ASH SPEWED INTO THE ATMOSPHERE BY THE NINETEEN NINETY ONE ERUPTION OF MOUNT PINATUBO HAS MOSTLY DISSIPATED AND EL NINO AN UNUSUAL MIGRATING WARM SPOT IN THE PACIFIC OCEAN HAS COOLED OFF QUOTE THERE REALLY ISN'T ANYTHING TO BLAME THIS TIME QUOTE SAYS BRAD RIPPEY A METEOROLOGIST AT THE NATIONAL WEATHER SERVICE WE SHOULD REALIZE THAT WHAT IS HAPPENING IS WITHIN THE REALM OF NORMALCY IF YOU CONSIDER CLIMATE VARIATION IN OTHER WORDS WEATHER IS SUPPOSED TO BE WACKY FORECASTERS DO KNOW ONE THING THE JET STREAM A HIGH SPEED RIVER OF AIR SOME TWENTY THOUSAND FEET ALOFT HAS JUMPED ITS BANKS MOST WINTERS THE JET STREAM TRAVELS ROUGHLY WEST TO EAST ACROSS THE NATION'S MIDSECTION SINCE MID DECEMBER HOWEVER THE JET STREAM HAS DETOURED INTO ALASKA MOVING FRIGID AIR SOUTH THROUGH CANADA INTO THE NATION'S NORTHERN PLAINS IN THIS CONFIGURATION THE JET STREAM HAS CAUSED POCKETS OF UNUSUALLY WARM WEATHER IN THE PACIFIC NORTHWEST WHILE CREATING A PIPELINE FOR ARCTIC COLD IN THE HEARTLAND THE RECORDS ARE PILING UP SO FAR A DOZEN U. S. CITIES HAVE RECORDED THEIR COLDEST DAY FOR ANY DATE IN HISTORY STATES IN THE NORTHEAST HAVE HAD THEIR THIRD COLDEST JANUARY WHICH IS USUALLY THE COLDEST MONTH OF THE YEAR IN ABOUT A CENTURY THE TEMPERATURES LAST MONTH IN CHICAGO NEW YORK CITY AND MINNEAPOLIS AVERAGED FIVE DEGREES SIX DEGREES AND SEVEN DEGREES BELOW NORMAL RESPECTIVELY THE ALIGNMENT OF THE JET STREAM IS ALSO PULLING OCEAN MOISTURE OVER THE NORTHEAST AND THE UNUSUALLY COLD TEMPERATURES MEAN MORE SNOW AND LESS RAIN PARKERSBURG W. VIRGINIA FOR EXAMPLE WAS BURIED BY FORTY INCHES OF SNOW IN JANUARY MORE THAN IT RECEIVED DURING THE PAST TWO WINTERS COMBINED MOST METEOROLOGISTS AGREE THAT OCEAN TEMPERATURES AND VOLCANOES AFFECT THE CLIMATE BUT THE WEATHER LIKE THE ECONOMY IS SO CHAOTIC THAT THERE IS LOTS OF ROOM FOR EXPERTS TO MAKE A LIVING ARGUING OVER HOW THINGS CHANGE AND WHEN GET TEN METEOROLOGISTS TOGETHER AND THEY'LL ALL HAVE DIFFERENT OPINIONS ABOUT WHAT CAUSED THE WEATHER AND HOW TO FORECAST IT SAYS CHARLES NOTIS A METEOROLOGIST AND CO OWNER OF FREESE NOTIS WEATHER OF DES MOINES IOWA AND EVEN THOUGH METEOROLOGISTS CAN'T PINPOINT A CAUSE THEY PERSIST IN PRESSING THEIR OWN THEORIES SOME EL NINO WATCHERS FOR EXAMPLE SAY THE RECENT COOLING OF THE PATCH OF WATER SIGNALS A HIGHER RISK OF SUMMER DROUGHT IN THE MIDWEST SUN WATCHERS ARE GEARING UP FOR THE ARRIVAL OF A PERIOD OF LOW SOLAR ACTIVITY WHICH THEY CALL A DOUBLE SUNSPOT MINIMUM IN A COUPLE OF YEARS THEY TRY TO CORRELATE WEATHER PATTERNS ON EARTH WITH THE SUN THE RECENT SPATE OF WEIRD WEATHER HAS GIVEN GRIST TO VOLCANO WATCHERS WHO THEORIZE THAT THE DEBRIS PUMPED INTO THE ATMOSPHERE BY CATASTROPHIC ERUPTIONS CAN DEFLECT ENOUGH OF THE SUN'S HEAT TO CAUSE A SHIFTING OF THE JET STREAM THE ERUPTION OF MOUNT PINATUBO IN THE PHILIPPINES FOR EXAMPLE WAS FOLLOWED BY AN UNUSUALLY COOL SUMMER IN NINETEEN NINETY TWO AND THEN A WET SUMMER IN THE U. S. THE JET STREAM PLAGUING THE U. S. THIS WINTER IS ALSO UNUSUALLY PERSISTENT BUT MOST METEOROLOGISTS SAY THE ASH FROM MOUNT PINATUBO PROBABLY ISN'T TO BLAME ANYMORE WE'VE SEEN THE CLIMATE ALTERED FOR A COUPLE YEARS SAYS PETER LEAVITT CHIEF EXECUTIVE OFFICER OF WEATHER SERVICES CORPORATION BEDFORD MASSACHUSETTS NOW IT HAS TO FIND ITS WAY BACK SO WHEN WILL THE WEATHER RETURN TO SOMETHING APPROACHING NORMAL THE HEAVY RAINS AND MUDSLIDES IN CALIFORNIA THIS WEEK MAY SIGNAL A CHANGING COURSE FOR THE JET STREAM BY NEXT WEEK METEOROLOGISTS SAY TEMPERATURES COULD REACH THE FORTIES IN THE NORTHEASTERN UNITED STATES BUT NOBODY IS READY TO PREDICT AN END TO THE UNUSUAL WEATHER JUST YET FIELDCREST CANNON INCORPORATED SAID THE PROSPECTIVE BUYERS OF ITS BANGOR AND AROOSTOOK RAILROAD IN MAINE HAVE TOLD THE TEXTILE COMPANY THAT THEY WON'T CLOSE ON THE TRANSACTION THE RAILROAD WAS RECENTLY ACQUIRED BY FIELDCREST CANNON AS PART OF ITS ACQUISITION OF AMOSKEAG COMPANY THE RAILROAD WAS TO BE ACQUIRED BY BAR ACQUISITION COMPANY GREENWICH CONNECTICUT A COMPANY CREATED FOR THE PURPOSE OF MAKING THE ACQUISITION THE PURCHASE PRICE WAS TO BE TWENTY EIGHT POINT EIGHT MILLION DOLLARS FIELDCREST SAID WHEN IT ANNOUNCED THE DEAL LAST SEPTEMBER FIELDCREST SAID IT'S HOLDING TALKS WITH OTHER PARTIES INTERESTED IN BUYING THE RAILROAD SINGAPORE TELECOM AND THREE OTHER PARTIES TUESDAY SIGNED A JOINT VENTURE AGREEMENT TO ESTABLISH A COMPANY THAT WILL DEVELOP OPERATE AND MANAGE A RESEARCH AND DEVELOPMENT PARK THE PARTNERS OF TELETECH PARK POINT LIMITED ARE SINGAPORE TELECOM WITH A FORTY PERCENT EQUITY A SUBSIDIARY OF THE GOVERNMENT'S TELECOMMUNICATION AUTHORITY OF SINGAPORE TEN PERCENT TECHNOLOGY PARKS POINT LIMITED TWENTY FIVE PERCENT AND SINGAPORE TECHNOLOGIES VENTURES POINT LIMITED TWENTY FIVE PERCENT U. S. AIR SLASHED FARES COMMONLY USED BY BUSINESS TRAVELERS BY AS MUCH AS FIFTY PERCENT ON MANY EAST COAST ROUTES A RISKY RESPONSE TO CONTINENTAL AIRLINES' PLAN TO EXPAND ITS LOW FARE SERVICE IN THE EAST THE U. S. AIR GROUP INCORPORATED UNIT THE NATION'S SIXTH LARGEST AIRLINE SAID IT ALSO IS CUTTING MORE RESTRICTED LEISURE FARES BY AS MUCH AS SEVENTY PERCENT IN THE SAME NINETY SIX MARKETS THE MONEY LOSING CARRIER SAID THE NEW FARES ARE PART OF A PERMANENT PRICE RESTRUCTURING EFFORT NOT JUST SPECIAL LIMITED TIME DISCOUNTS CONTINENTAL AIRLINES WHICH RECENTLY ANNOUNCED A MAJOR EXPANSION OF ITS LOW PRICED CALITE SERVICE IN SHORT HAUL MARKETS SAID IT WOULD MATCH U. S. AIR IN THOSE MARKETS DALLAS BASED SOUTHWEST AIRLINES WHICH ALSO IS ENCROACHING ALBEIT MORE SLOWLY ON U. S. AIR QUOTE TERRITORY QUOTE IN THE EAST SAID IT ALSO WOULD MATCH ON COMPETITIVE ROUTES DELTA AIR LINES A. M. R. CORPORATION'S AMERICAN AIRLINES NORTHWEST AIRLINES AND THE OTHER MAJORS SAID THEY PROBABLY WOULD CUT FARES ON COMPETITIVE ROUTES MOST ANALYSTS AGREED U. S. AIR COULD DO LITTLE BUT LOWER FARES BUT THEY WONDERED HOW THE HIGH COST AIRLINE WOULD SUSTAIN SUCH DEEP FARE CUTS HOW LONG CAN THEY SURVIVE DOING THIS SAID DEAN SPARKMAN AN AVIATION CONSULTANT WITH SPARKMAN COLE AND HARRIS IN WASHINGTON OBVIOUSLY THEY DON'T HAVE ANY CHOICE THEY'RE NOT GOING TO GIVE UP THE EAST BUT THEY'RE GOING TO HAVE TO LOSE MONEY WHILE THEY RESTRUCTURE INTERNALLY SINCE LAST YEAR THE ARLINGTON VIRGINIA BASED CARRIER HAS BEEN PLAGUED BY A CRIPPLING PRICE WAR IN CALIFORNIA WITH U. A. L. CORPORATION'S UNITED AIRLINES IT HAS ALSO FACED INCREASING PRESSURE FROM SOUTHWEST AND CONTINENTAL ALONG THE EAST COAST SOUTHWEST HAS ONLY A FEW DESTINATIONS IN THE EAST BUT IT HAS SAID IT WANTS TO EXPAND BUT THE BIGGEST PROBLEM IS CONTINENTAL'S NEW LOW PRICED CALITE PROGRAM CONTINENTAL HAS SAID IT PLANS TO EXPAND CALITE SERVICE IN MARCH TO MORE THAN EIGHT HUNDRED FLIGHTS A DAY FROM ABOUT THREE HUNDRED TODAY THE FARES AIMED AT BUSINESS TRAVELERS ARE FOR ONE WAY UNRESTRICTED FLIGHTS WITH NO ADVANCED PURCHASE OR STAYOVER REQUIREMENTS EFFECTIVE YESTERDAY THE FIFTY PERCENT REDUCTIONS AFFECT ROUTES IN NINETY SIX MARKETS INCLUDING THE CAROLINAS FLORIDA VIRGINIA AND MAJOR DESTINATIONS IN THE NORTHEAST U. S. AIR SAID IN MANY OF THESE MARKETS FREE COMPANION FARES ARE AVAILABLE ALTHOUGH SOME RESTRICTIONS APPLY LEISURE ROUND TRIP TICKET PRICES IN THE SAME MARKETS WERE CUT BY SEVENTY PERCENT BUT THOSE FARES REQUIRE STAYOVERS SEVEN DAY ADVANCE PURCHASE AND ARE NONREFUNDABLE WHILE MOST OF THE AFFECTED ROUTES ARE SHORT HAUL SUCH AS CHARLOTTE N. C. TO BALTIMORE THE PRICE REDUCTIONS ALSO INCLUDE SOME SELECTED MEDIUM RANGE ROUTES SUCH AS ORLANDO FLORIDA TO BUFFALO N. Y. U. S. AIR SAID THE FARE REDUCTIONS AFFECT NEARLY ONE QUARTER OR SIX HUNDRED OF ITS TWO THOUSAND FIVE HUNDRED DAILY FLIGHTS A U. S. AIR SPOKESMAN DESCRIBED THE CUTS AS VERY DRAMATIC FOR INSTANCE A NONRESTRICTED REFUNDABLE ONE WAY FARE FROM CHARLOTTE TO BALTIMORE PREVIOUSLY THREE HUNDRED FIFTY FOUR DOLLARS IS NOW ONE HUNDRED SIXTY NINE DOLLARS THE EAST IS THE HEART OF U. S. AIR HE SAID AND WE'RE MAKING IT CLEAR THAT WE'RE GOING TO DEFEND OUR TURF ON A BROADER LEVEL ANALYSTS CALLED U. S. AIR'S ANNOUNCEMENT YET ANOTHER SIGNAL THAT SMALLER LOW COST AIRLINES SUCH AS SOUTHWEST AND CONTINENTAL HAVE DRIVEN DOWN THE COST OF DOING BUSINESS AND SERIOUSLY WOUNDED THE MAJORS QUOTE IT'S JUST A BYPRODUCT OF THE MARKETPLACE QUOTE SAID MR. SPARKMAN THE WASHINGTON CONSULTANT AND IT'S GOING TO CONTINUE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING U. S. AIR GROUP WAS DOWN TWENTY FIVE CENTS CLOSING AT FOURTEEN POINT ONE TWO FIVE DOLLARS U. S. AIR SAID THE LOWER FARES AREN'T PART OF ITS PREVIOUSLY ANNOUNCED PLAN TO CHANGE FLIGHT SCHEDULES ON ITS ROUTES OF LESS THAN FIVE HUNDRED MILES MORE THAN TWO THIRDS OF ITS ROUTE NETWORK THAT PLAN CALLED PROJECT HIGH GROUND IS AIMED AT LOWERING EXPENSES ON THOSE ROUTES BY BOOSTING PRODUCTIVITY AND OPERATING EFFICIENCIES THE CARRIER EARLIER SAID IT WOULD BEGIN CHANGING FLIGHT SCHEDULES ON SOME OF THOSE ROUTES STARTING NEXT WEEK WITH THE PROGRAM GRADUALLY PHASED IN THIS YEAR ANHEUSER BUSCH COMPANIES SAID FOURTH QUARTER EARNINGS ROSE THREE POINT TWO PERCENT ON HIGHER BEER SALES PARTLY REFLECTING THE ROLLOUT OF ITS BUDWEISER ICE DRAFT BEER THE NATION'S LARGEST BREWER SAID IT WOULD SEEK TO RAISE PRICES ON ITS LINE OF BUDWEISER PREMIUM BEERS THIS YEAR ALTHOUGH AT RATES BELOW THE CONSUMER PRICE INDEX SUCH A MOVE WOULD HELP OFFSET LOWER PRICES IT HAS BEEN FORCED TO CHARGE IN CALIFORNIA WHERE AN INTENSE BEER PRICE WAR CONTINUES FOR THE QUARTER ANHEUSER REPORTED EARNINGS OF ONE HUNDRED SIXTY SIX POINT EIGHT MILLION DOLLARS OR SIXTY TWO CENTS A SHARE COMPARED WITH ONE HUNDRED SIXTY ONE POINT SIX MILLION DOLLARS OR FIFTY EIGHT CENTS A SHARE A YEAR EARLIER SALES ROSE FOUR POINT SEVEN PERCENT TO TWO POINT EIGHT FIVE BILLION DOLLARS FROM TWO POINT SEVEN THREE BILLION DOLLARS THERE WERE TEN POINT NINE MILLION FEWER COMMON SHARES OUTSTANDING IN THE LATEST PERIOD FULL YEAR EARNINGS FELL THIRTY FIVE PERCENT TO FIVE HUNDRED NINETY FOUR POINT FIVE MILLION DOLLARS OR TWO DOLLARS AND SEVENTEEN CENTS A SHARE FROM NINE HUNDRED SEVENTEEN POINT FIVE MILLION DOLLARS OR THREE DOLLARS AND TWENTY TWO CENTS A SHARE IN NINETEEN NINETY TWO THE NINETEEN NINETY THREE FIGURES INCLUDE A PRETAX RESTRUCTURING CHARGE OF FIVE HUNDRED SIXTY FIVE MILLION DOLLARS EQUAL TO ONE DOLLAR AND TWENTY SIX CENTS A SHARE WHILE THE PRIOR YEAR FIGURES INCLUDE AN ACCOUNTING CHARGE OF SEVENTY SIX POINT SEVEN MILLION DOLLARS OR TWENTY SIX CENTS A SHARE SALES LAST YEAR TOTALED ELEVEN POINT FIVE ONE BILLION DOLLARS UP LESS THAN ONE PERCENT FROM ELEVEN POINT THREE NINE BILLION DOLLARS IN NINETEEN NINETY TWO ANHEUSER'S THEME PARK BUSINESS BUSCH ENTERTAINMENT CORPORATION REPORTED RECORD SALES AND EARNINGS LAST YEAR AND WAS QUOTE A SIGNIFICANT CONTRIBUTOR QUOTE TO OVERALL RESULTS THE COMPANY SAID CURRENT QUARTER SALES VOLUME WILL BE UP AT LEAST FOUR PERCENT FROM A YEAR EARLIER REFLECTING ICE DRAFT'S CONTINUED ROLLOUT AND INVENTORY STOCKING PRIOR TO THE EXPIRATION OF LABOR CONTRACTS ANHEUSER SAID LAST YEAR'S FIRSTQUARTER SALES WERE HURT BY AN UNUSUALLY COLD WET SPRING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ANHEUSER STOCK ROSE TWELVE POINT FIVE CENTS OR ZERO POINT THREE PERCENT TO CLOSE AT FORTY EIGHT DOLLARS A SHARE THE FANS SQUEALING CLAPPING AND DANCING PUSH TOWARD THE STAGE AT THE CONVENTION CENTER HERE AS SECURITY GUARDS TRY TO KEEP ORDER GROUPIES REACH OVER THE BARRICADES TO SQUEEZE AND KISS THE SUPERSTAR THE OBJECT OF ALL THIS ATTENTION A CLUMSY SEVEN FOOT TALL PEAR SHAPED PIECE OF PINK FOAM RUBBER WHOSE ENTIRE VOCABULARY CONSISTS OF ONE WORD QUOTE BLOBBY QUOTE MR. BLOBBY AS HE IS KNOWN TO ALL FIRST APPEARED AS A CANDID CAMERA GAG ON A B. B. C. TELEVISION SHOW NOW HE IS THE LAND'S LEADING CELEBRITY BRITONS CAN'T GET ENOUGH OF HIS YELLOW SPOTS GREEN WANDERING EYES SILLY GRIN AND PENCHANT FOR TRIPPING BUMBLING AND KNOCKING OVER STAGE SETS HIS SMASH HIT SINGLE DEFIED THIRTY THREE TO ONE ODDS TO TOP THE CHRISTMAS POP CHARTS COSTING THE WILLIAM HILL BETTING FIRM ONE HUNDRED TWENTY THOUSAND DOLLARS MR. BLOBBY WAS A COVER BOY FOR THE ECONOMIST AND TABLOIDS HAVE NOMINATED HIM FOR EVERYTHING FROM PRIME MINISTER TO MANAGER OF ENGLAND'S NATIONAL SOCCER TEAM PEOPLE JUST GO BALLISTIC FOR BLOBBY SAYS MICHAEL DINNING WHO AS THE MAN APPEARING PUBLICLY IN THE BLOBBY COSTUME RECENTLY HAD TO OUTRUN SEVEN HUNDRED FIFTY STAMPEDING CHILDREN AT A SCHOOLYARD PHOTO SHOOT IT'S GONE FROM BEING ENTHUSIASTIC TO BEING MANIACAL THIS HAS CAUSED SOME SOUL SEARCHING HOW COULD THE LAND OF MILTON SHAKESPEARE BYRON AND DICKENS PRODUCE THIS SOME THINK MR. BLOBBY IS JUST THE LATEST DISPLAY OF BRITISH ECCENTRICITY IN THE MOLD OF MONTY PYTHON AND BENNY HILL IT'S A BIT OF ESCAPISM REALLY EXPLAINS CHARLES SPUNGIN A FINANCE STUDENT WHO KEEPS AN INFLATABLE BLOBBY IN HIS CAR OTHERS ARE SURE HE IS A BIG PINK SYMBOL OF NATIONAL DECLINE MR. BLOBBY'S CRITICS SAY THE AFFECTION FOR THIS LARGE PIECE OF RUBBER LACKING BOTH PERSONALITY AND MOTOR SKILLS IS A SIGN OF BRITAIN'S CULTURAL AND POLITICAL MALAISE THE CONSERVATIVE GOVERNMENT IS SCANDAL RIDDEN THE ROYALS ARE OUT OF FAVOR THE NATIONAL SOCCER TEAM IS OUT OF THE WORLD CUP IN THIS ENVIRONMENT A BUMBLING OAF WHO MUTTERS BLOBBY BLOBBY BLOBBY SPEAKS THE NATIONAL MIND IT IS A NIHILISTIC COMMENT ON THE VACUUM OF BRITISH POLITICS AND ALL THE OTHER THINGS WE'RE DISAPPOINTED IN ASSERTS PETER COLLETT AN OXFORD UNIVERSITY SOCIAL PSYCHOLOGIST QUOTE AT THIS JUNCTURE IN HISTORY WHERE THINGS ARE BAD AND PEOPLE ARE WALKING AROUND WITH LONG FACES AND NOTHING SEEMS TO BE WORKING BLOBBY SEEMS A SOLUTION TO THE VACUUM QUOTE STILL OTHERS ARE MORE ACERBIC IN THEIR BLOBBY ANALYSIS I THINK IT'S NONSENSICAL AND ABSURD AND I DON'T CARE TO DISCUSS IT DECLARES LORD STODDART OF SWINDON HARRODS DEPARTMENT STORE REFUSES TO SELL BLOBBY MERCHANDISE CALLING IT RATHER TAWDRY AND THE B. B. C.'S OWN RADIO ONE DECLINED TO PLAY MR. BLOBBY AS HIS SONG CLIMBED THE CHARTS A TONGUE IN CHEEK COMMENTARY IN THE TIMES OF LONDON ARGUED THAT MR. BLOBBY REVEALS BRITONS ARE REALLY AS LOW BROW AS AMERICANS AND JAPANESE CREATORS OF MARIO BROTHERS THE SIMPSONS AND NINJA TURTLES THIS IS SUPPOSED TO BE THE LAND OF THE SAINTED BARD NOT BLOODY MR. BLOBBY IT SAID MR. BLOBBY'S HANDLERS THINK THE CRITICS ARE TAKING THE INARTICULATE ICON TOO SERIOUSLY HE'S A CELEBRATION OF BRITISH LIFE SAYS HIS CREATOR THE B. B. C.'S MICHAEL LEGGO HE'S AN ENTHUSIAST ABOUT EVERYTHING HE'S FILLED WITH DELIGHT HE WEARS HIS HEART ON HIS SLEEVE AND ACTS ON IMPULSE THERE'S A LITTLE OF THAT IN ALL OF US QUOTE APPARENTLY MR. BLOBBY'S PUBLIC APPEARANCES CAUSE TRAFFIC JAMS AND SECURITY GUARDS SAY HE OUTDRAWS THE ROYAL FAMILY MR. BLOBBY'S VIDEO HAS SOLD MORE THAN THREE HUNDRED THIRTY THOUSAND COPIES AND MR. LEGGO SAYS HE IS CONSIDERING PLANS FOR A MOVIE SOME BLOBBY BACKERS JUST ANNOUNCED PLANS TO BUILD A FANTASY VILLAGE FEATURING MR. BLOBBY THERE HAVE BEEN REPORTS OF BLOBBY CARS BLOBBY TATTOOS A BLOBBY COPTER AND IN WARWICKSHIRE A STATUE OF A DECEASED LORD DRESSED AS MR. BLOBBY MR. BLOBBY DEBUTED IN NINETEEN NINETY TWO AS A SERIES OF EIGHT GOTCHA SEGMENTS ON NOEL'S HOUSE PARTY A POPULAR TELEVISION VARIETY SHOW CELEBRITIES WERE LURED INTO THE SETUP THINKING THEY WERE GUESTS ON A NEW CHILDREN'S SHOW BUT THEN MR. BLOBBY PLAYED ON THE SHOW BY BARRY KILLERBY A SHAKESPEAREAN ACTOR ABUSED THEM BY TRIPPING OVER THE SET AND DESTROYING THE PROPS RUGBY PLAYER WILL CARLING BECAME SO FRUSTRATED THAT HE KICKED THE CHARACTER AND TOLD HIM TO SHUT UP BLOBBY NOW APPEARS ON THE SHOW EVERY OTHER WEEK MR. LEGGO THINKS THE HOUSE PARTY ALREADY BROADCAST IN NEW ZEALAND AND AUSTRALIA COULD BE THE VEHICLE TO BRING BLOBBY TO THE U. S. BUT IT'S NOT AT ALL CLEAR AMERICANS WOULD FALL FOR MR. BLOBBY NOR HOW LONG HE WILL LAST IN BRITAIN JACKIE FERGUSON OF LEISURE CONCEPTS INTERNATIONAL INCORPORATED A COMPANY THAT LICENSES SIMILAR FANTASY CHARACTERS PREDICTS BLOBBY WILL BURN OUT SOON AMERICANS SHE THINKS WOULD FIND HIM POINTLESS I DON'T HONESTLY SEE HIM MOVING STATESIDE SHE SAYS BUT WITH MR. BLOBBY ALREADY NETTING SOME FIFTEEN MILLION DOLLARS IN BLOBBY PARAPHERNALIA MERCHANDISERS AREN'T LIKELY TO LET HIM DIE WITHOUT A STRUGGLE THERE'S NO REASON WHY MR. BLOBBY CAN'T GO ON WELL INTO THE NINETIES SAYS ALISTAIR TONNISON WHOSE GIFT CORPORATION IN NORTHAMPTON HAS SOLD TWO HUNDRED FIFTY THOUSAND BLOBBY MRS. BLOBBY AND BABY BLOBBY DOLLS PAJAMA CASES AND CAR DECORATIONS IN MANCHESTER WHERE MR. BLOBBY IS VISITING A TRADE SHOW FOR MOBILE HOMES SOME TWO THOUSAND CHILDREN AND THEIR PARENTS HAVE COME TO SEE HIM RATHER THAN THE HOMES AS FATHERS SNAP PICTURES MOTHERS SING THE BLOBBY TUNE WITH THE CHILDREN WHO SWARM AROUND BOOTH NUMBER FIFTY THE MR. BLOBBY MERCHANDISING UNIT QUOTE I LIKE HIM WHEN HE GOES BLOBBY BLOBBY BLOBBY QUOTE SAYS FRANCESCA MURRAY AGE SIX WEARING MR. BLOBBY FACE PAINT ADDS VICTORIA NEWTON EIGHT SPORTING A BLOBBY IS BEST BUTTON I LIKE IT WHEN HE ATTACKS PEOPLE AND I LIKE HIS YELLOW SPOTS AFTER THE MANCHESTER PERFORMANCE HE GETS A LOVE LETTER FROM JULIE HAYDEN TEN WHO ENCLOSES HER PHONE NUMBER AND A NOTE FROM ASHLEIGH IN TYNE AND WEAR ASKING HIM TO TEA AND IT'S NOT JUST KID STUFF JOHN REDWOOD THE SECRETARY OF STATE FOR WALES TOLD A GROUP OF BUSINESSMEN THAT HE ASPIRED TO BLOBBY LIKE POPULARITY MR. BLOBBY IS A ROUND NICE PERSON AND NO ONE HAS A BAD THING TO SAY ABOUT HIM HE EXPLAINED A TABLOID THE DAILY MIRROR PROCLAIMED MR. BLOBBY PRIME MINISTER ONE DAY WHEN JOHN MAJOR WAS OUT OF TOWN SAYING BLOBBY WOULD DRAG US OUT OF THE RED AND INTO THE PINK A SPOKESMAN FOR THE PRIME MINISTER SAYS MR. MAJOR IS STILL IN CHARGE THE PRIME MINISTER HAS MANY THINGS ON HIS MIND BUT MR. BLOBBY IS NOT FOREMOST AMONG THEM COLUMBIA HEALTHCARE CORPORATION AND HOSPITAL CORPORATION OF AMERICA AS PART OF A CONSENT AGREEMENT WITH THE FEDERAL TRADE COMMISSION ON THEIR PROPOSED MERGER MUST DIVEST H. C. A.'S AIKEN REGIONAL MEDICAL CENTER IN AIKEN S. C. BANC ONE CORPORATION SIGNED AN AGREEMENT TO BUY AMERICAN HOLDING COMPANY HIGHLAND PARK ILLINOIS TERMS WERE NOT DISCLOSED AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S A. T. AND T. SUBMARINE SYSTEMS UNIT RECEIVED A TWENTY MILLION DOLLAR CONTRACT FROM G. T. E. CORPORATION'S G. T. E. HAWAIIAN TEL DIVISION TO DESIGN ENGINEER AND INSTALL AN UNDERSEA FIBEROPTIC COMMUNICATIONS SYSTEM FOR HAWAII ECOGEN INCORPORATED'S CONDOR BIOINSECTICIDE WAS APPROVED BY THE AUSTRALIAN GOVERNMENT FOR USE ON COTTON FRANKLIN ELECTRONIC PUBLISHERS INCORPORATED REACHED AN AGREEMENT WITH MCGRAW HILL INCORPORATED TO MAKE AVAILABLE AN ELECTRONIC VERSION OF THE MEDICAL TEXTBOOK PRINCIPLES OF SURGERY COMPANION HANDBOOK I. C. F. KAISER INTERNATIONAL INCORPORATED ESTABLISHED AN ENVIRONMENTAL CONSULTING AND ENGINEERING COMPANY IN MEXICO WITH TWO CONSULTANTS WHO FORMERLY HELD HIGH RANKING POSITIONS FOR INTERNATIONAL ENVIRONMENTAL AFFAIRS IN THE MEXICAN GOVERNMENT CAPITAL RE CORPORATION FORMED CAPITAL MORTGAGE REINSURANCE COMPANY CAPITALIZED AT ONE HUNDRED TWENTY MILLION DOLLARS TO SERVE THE MORTGAGE GUARANTY INSURANCE INDUSTRY M. T. V. NETWORKS SAID IT REACHED AN AGREEMENT FOR FINGERHUT COMPANIES MINNEAPOLIS TO TAKE AND FILL ORDERS AND WAREHOUSE MERCHANDISE FOR ITS NEW HOME SHOPPING PROGRAMMING IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FINGERHUT SHARES ROSE NINE PERCENT OR TWO POINT THREE SEVEN FIVE DOLLARS TO TWENTY EIGHT POINT EIGHT SEVEN FIVE DOLLARS A SHARE M. T. V. NETWORKS A UNIT OF VIACOM INCORPORATED RECENTLY ANNOUNCED PLANS FOR A SIX MONTH TEST TO SELL MUSIC AND RELATED PRODUCTS OVER HOME SHOPPING PROGRAMMING ON ITS THREE CABLE T. V. NETWORKS G. E. CAPITAL SAID ITS EUROPEAN FLEET SERVICES BUSINESS COMPLETED THE ACQUISITION OF THE VEHICLE FINANCING BUSINESS OF SKANDIC BILFINANS IN STOCKHOLM FOR AN UNDISCLOSED SUM THE BUSINESS WHICH HAS THIRTY SEVEN THOUSAND VEHICLES UNDER LEASE AND MANAGEMENT WAS ACQUIRED FROM FINANS SKANDIS A WHOLLY OWNED SUBSIDIARY OF SKANDANAVISKA ENSKILDA BANKEN G. E. CAPITAL THE FINANCIAL SERVICES UNIT OF GENERAL ELECTRIC COMPANY LEASES AND MANAGES MORE THAN SEVEN HUNDRED THOUSAND CARS TRUCKS AND SPECIALTY VEHICLES THROUGH ITS G. E. CAPITAL FLEET SERVICES BUSINESS ALBERT R. HUNT IN HIS JANUARY THIRTEENTH POLITICS AND PEOPLE COLUMN QUOTE CLINTON'S RUSSIA POLICY IS NO SHINING SUCCESS QUOTE ADDRESSES SEVERAL IMPORTANT ASPECTS OF U. S. POLICY TOWARD RUSSIA AS MR. HUNT POINTS OUT MORE THAN TWENTY FIVE THOUSAND NUCLEAR WEAPONS ARE STILL DEPLOYED IN RUSSIA UKRAINE BELARUS AND KAZAKHSTAN THIS ADMINISTRATION IS COMMITTED TO FACILITATING THEIR DISMANTLEMENT AND DESTRUCTION FURTHERMORE IT SHARES MR. HUNT'S VIEW THAT THE U. S. SHOULD HELP FUND AND LAUNCH NEW BUSINESSES IN RUSSIA SINCE SENATORS NUNN AND LUGAR SPONSORED THE NINETEEN NINETY ONE LEGISLATIVE ACT THAT PROVIDES DOLLARS TO ASSIST FORMER SOVIET NUCLEAR AND CHEMICAL WEAPONS DISMANTLEMENT THEY HAVE EXHORTED THEIR COLLEAGUES THE PUBLIC AND TWO ADMINISTRATIONS TO STAY COMMITTED TO THIS TASK THE NUNN LUGAR INITIATIVE HAS BEEN AN ESSENTIAL STIMULUS FOR PROGRESS TO DATE THE RECENT KIEV MOSCOW AGREEMENT TO DISMANTLE UKRAINE'S NUCLEAR WARHEADS OVER THE NEXT SEVERAL YEARS WOULD HAVE BEEN UNLIKELY WITHOUT THE UNRELENTING DIPLOMATIC EFFORTS OF KEY ADMINISTRATION OFFICIALS AND SENATORS NUNN AND LUGAR COMPLEMENTING THE DIPLOMATIC EFFORTS ARE TANGIBLE SIGNS OF U. S. FINANCIAL SUPPORT TO DATE ALMOST ONE HUNDRED TWENTY MILLION DOLLARS HAVE BEEN COMMITTED UNDER CONTRACT AND NEARLY FIVE THOUSAND ITEMS DELIVERED IN ACCORDANCE WITH ABOUT THIRTY DIFFERENT BILATERAL AGREEMENTS ANOTHER THREE HUNDRED FIFTY MILLION DOLLARS IN SUPPORT IS ANTICIPATED FOR NINETEEN NINETY FOUR AND MORE THAN FOUR HUNDRED MILLION DOLLARS FOR NINETEEN NINETY FIVE RUSSIA UKRAINE BELARUS AND KAZAKHSTAN ARE MAKING SUBSTANTIAL PROGRESS DEACTIVATING THEIR NUCLEAR WEAPONS AND PRESIDENT CLINTON AND PRESIDENT YELTSIN JUST SIGNED A CHEMICAL WEAPONS DISMANTLEMENT AGREEMENT WITH REGARD TO DEFENSE CONVERSION AND NEW BUSINESS CREATION THIS ADMINISTRATION HAS ENDORSED A FAST TRACK APPROACH PROJECTS ARE ABOUT TO BEGIN IN BELARUS ALSO SECRETARY OF DEFENSE WILLIAM PERRY WITH A TEAM OF EXPERTS FROM SEVERAL AGENCIES RECENTLY VISITED A NUMBER OF RUSSIAN DEFENSE FIRMS WITH HIGH POTENTIAL FOR RAPID TRANSFORMATION TO NONDEFENSE PRODUCTION SOME OF THESE FIRMS HAVE BEEN CARVED OUT FROM LARGER ENTERPRISES SOME ARE NEW BUSINESSES WITH PROMISING COMMERCIAL PRODUCTS AND SERVICES ALL OF THEM NEED U. S. FIRMS AS PARTNERS THE AMERICAN COMPANIES INVOLVED ALL ACHIEVE ACCESS TO NEW TECHNOLOGIES POTENTIAL NEW MARKETS AND ECONOMIC PRODUCTION CAPABILITY RECENTLY COMMITTED U. S. FINANCIAL ASSISTANCE IS THE LAST LINK TO A FAST RUNNING START FOR THESE RUSSIAN COMPANIES REUTERS HOLDINGS P. L. C. BENEFITING FROM BOOMING BUSINESS IN FINANCIAL MARKETS REPORTED A FIFTEEN PERCENT INCREASE IN PRETAX PROFIT ON A TWENTY PERCENT RISE IN REVENUE LAST YEAR AND SAID IT WILL SPLIT ITS SHARES THE INFORMATION AND FINANCIAL SERVICES GROUP'S EARNINGS ROSE TO FOUR HUNDRED FORTY MILLION SIX HUNDRED FIFTY TWO POINT THREE MILLION DOLLARS FROM THREE HUNDRED EIGHTY THREE MILLION SLIGHTLY HIGHER THAN MOST ANALYSTS' PREDICTIONS PER SHARE EARNINGS JUMPED SEVENTEEN PERCENT TO SEVENTY TWO PENCE FROM SIXTY ONE POINT EIGHT PENCE REVENUE MEANWHILE CLIMBED TO ONE POINT EIGHT SEVEN BILLION FROM ONE POINT FIVE SEVEN BILLION BUT EXCLUDING THE EFFECT OF CURRENCY FLUCTUATIONS REVENUE ROSE EIGHT PERCENT REUTERS SAID IT PLANNED TO SPLIT ITS ORDINARY SHARES INTO FOUR NEW SHARES AND THAT ITS AMERICAN DEPOSITARY SHARES WILL BE REDEFINED TO COMPRISE SIX SHARES INSTEAD OF THE CURRENT THREE THE COMPANY ALSO RAISED THE FINAL DIVIDEND TO NINETEEN POINT EIGHT PENCE FROM FIFTEEN POINT NINE PENCE FOR A TOTAL DIVIDEND FOR THE YEAR OF TWENTY SIX PENCE A RISE OF TWENTY THREE PERCENT FROM NINETEEN NINETY TWO'S PAYOUT ON THE LONDON STOCK EXCHANGE REUTERS SHARES JUMPED SIXTY FOUR POINT TWO FIVE PENCE OR THREE POINT FOUR PERCENT TO NINETEEN POINT SEVEN OH A SHARE WHILE THE REST OF THE MARKET FINISHED ABOUT ZERO POINT FIVE PERCENT HIGHER THE SEMICONDUCTOR INDUSTRY CONTINUED TO SHOW IMPROVEMENT DRIVEN BY DEMAND IN THE PERSONAL COMPUTER SECTOR AS THE INDUSTRY'S LEADING INDICATOR ROSE IN JANUARY NEW ORDERS FOR THE NORTH AMERICAN MARKET IN JANUARY BASED ON A THREE MONTH MOVING AVERAGE WERE TWO POINT FOUR SIX BILLION DOLLARS A SIX PERCENT INCREASE FROM TWO POINT THREE TWO BILLION DOLLARS RECORDED THE PREVIOUS MONTH JANUARY ORDERS WERE TWENTY PERCENT HIGHER THAN THE TWO POINT OH FIVE BILLION DOLLARS POSTED A YEAR EARLIER SEMICONDUCTOR SHIPMENTS FOR JANUARY ALSO BASED ON A THREE MONTH MOVING AVERAGE WERE TWO POINT THREE OH BILLION DOLLARS A THREE POINT NINE PERCENT INCREASE FROM THE TWO POINT TWO TWO BILLION DOLLARS IN THE PREVIOUS MONTH SHIPMENTS OR BILLINGS GREW THIRTY FIVE PERCENT FROM ONE POINT SEVEN ONE BILLION DOLLARS A YEAR EARLIER PRIME MINISTER MORIHIRO HOSOKAWA HAMMERED OUT A ONE HUNDRED FORTY BILLION DOLLAR STIMULUS PACKAGE THAT MAY NOT GET JAPAN'S ECONOMY RACING BUT SHOULD KEEP IT FROM REVERSING AGAIN THE PACKAGE WHICH INCLUDES A ONE YEAR CUT IN INCOME TAXES TOTALING FIVE POINT FOUR SEVEN TRILLION YEN FIFTY POINT THREE BILLION DOLLARS AND MUCH NEEDED AID FOR THE NATION'S STRUGGLING BANKS OUGHT TO ADD BETWEEN ONE AND TWO PERCENTAGE POINTS OF GROWTH TO THE ECONOMY ANALYSTS SAY BUT THEY WARN THAT THE STEPS WON'T END JAPAN'S DOWNTURN AND WORRY THAT THE TEMPORARY NATURE OF THE TAX CUT MIGHT BLUNT ITS STIMULATIVE EFFECT QUOTE IT'S NOT THE BEST OUTCOME POSSIBLE BUT IT'S BETTER THAN WAITING FURTHER QUOTE SAID MITSUBISHI BANK LIMITED ECONOMIST DONALD KIMBALL AT BEST IT MIGHT JUST SHORE UP THE ECONOMY IN THE MEDIUM TERM THE PACKAGE IS THE RESULT OF A LAST MINUTE COMPROMISE WORKED OUT BY MR. HOSOKAWA'S COALITION GOVERNMENT MR. HOSOKAWA HAD PROPOSED RAISING SALES TAXES TO PAY FOR THE INCOME TAX REDUCTION BUT THE NOTION THREATENED TO SPLIT HIS GOVERNMENT AND HURT HIM IN THE POLLS LAST NIGHT A HUMBLED MR. HOSOKAWA ISSUED AN APOLOGY TO THE NATION OVER THE UPROAR MORE THAN ANYTHING THE PROCEDURE WAS ABRUPT HE SAID I MUST APOLOGIZE SINCERELY TO THE PEOPLE MR. HOSOKAWA RUSHED OUT THE MEASURES IN ORDER TO HAVE SOMETHING TO SHOW PRESIDENT CLINTON WHEN THE TWO LEADERS MEET IN WASHINGTON ON FRIDAY THE U. S. HAS BEEN PRESSING JAPAN TO BOOST ITS ECONOMY SO THAT IT WILL IMPORT MORE BUT ECONOMISTS SAY THE PACKAGE PROBABLY WON'T FULLY SATISFY MR. CLINTON THE U. S. HAS BEEN WAITING FOR JAPAN TO PULL OUT THE STOPS IN STIMULATING DOMESTIC DEMAND SAID JAMES VESTAL ECONOMIST AT BARCLAYS DE ZOETE WEDD LIMITED THEY HAVEN'T WASHINGTON ALSO IS DEMANDING THAT JAPAN SIGN AGREEMENTS TO OPEN SPECIFIC SECTORS TO MORE IMPORTS BUT THOSE TALKS ARE CONSIDERED STALLED IN WASHINGTON WHERE U. S. OFFICIALS HAVE ARGUED THAT ONLY JAPAN HAS THE WHEREWITHAL TO CUT TAXES AND SPUR WORLD ECONOMIC GROWTH TREASURY SECRETARY LLOYD BENTSEN RESPONDED CAUTIOUSLY QUOTE THIS IS A MODEST STEP EVERY LITTLE BIT HELPS HE SAID IT REMAINS TO BE SEEN WHETHER THIS PACKAGE WILL BE ADEQUATE TO SPUR STRONG DEMAND AND TO REDUCE THE CURRENT ACCOUNT SIGNIFICANTLY U. S. OFFICIALS SAY IT'S HARD TO TELL HOW MUCH STIMULUS WILL RESULT FROM A JAPANESE GOVERNMENT SPENDING PACKAGE WITHOUT KNOWING HOW MUCH OF THE MONEY WOULD HAVE BEEN SPENT OTHERWISE OR WHERE OFFSETTING SPENDING CUTS ARE BEING PROPOSED AS U. S. EXPERIENCE ILLUSTRATES A TAX CUT BILLED AS TEMPORARY IS LESS POTENT THAN A PERMANENT CUT BECAUSE CONSUMERS ARE MORE LIKELY TO SAVE THE WINDFALL THAN SPEND IT IN THE END IT SEEMS U. S. PRESSURE ULTIMATELY SAVED MR. HOSOKAWA BY FORCING A COALITION COMPROMISE ON TAXES MOST POLITICIANS FELT IT WOULD HAVE BEEN A DISASTER FOR MR. HOSOKAWA TO MEET MR. CLINTON EMPTY HANDED THE HOSOKAWA ADMINISTRATION IS IN A STATE OF TOTAL CHAOS AND ON THE VERGE OF IMPLOSION POLITICAL COMMENTATOR MINORU MORITA SAID THE DAY BEFORE THE TAX COMPROMISE WAS REACHED BUT THE JAPAN U. S. SUMMIT CAN BE DESCRIBED AS THE SAVIOR FOR MR. HOSOKAWA MORE THAN ANY POSTWAR JAPANESE PRIME MINISTER MR. HOSOKAWA HAS DRAWN HIS POWER FROM HIS SKY HIGH POPULARITY WHICH HAS STEMMED IN PART FROM HIS CONFIDENT IMAGE YET IN CONTRAST WITH THE STEADY WAY HE SEEMED TO HANDLE OTHER ISSUES OPENING THE RICE MARKET AND ENACTING POLITICAL REFORM MR. HOSOKAWA HAS SEEMED WEAK AND INDECISIVE ON THE TAX MATTER THE BATTLE HAS BADLY BRUISED HIM CONTRIBUTING TO A SLIDE OF NEARLY TWENTY PERCENTAGE POINTS IN HIS POPULARITY RATINGS MR. HOSOKAWA'S IMAGE HAD ANOTHER BLOW WITH A REPORT PUBLISHED THIS WEEK IN THE MAGAZINE BUNGEI SHUNJU ALLEGING EXTENSIVE FINANCIAL TIES BETWEEN MR. HOSOKAWA'S FAMILY AND A SCANDAL TAINTED TRUCKING FIRM SIMILAR ALLEGATIONS SURFACED AGAINST MR. HOSOKAWA LAST YEAR BUT DID LITTLE DAMAGE THE STIMULUS PLAN ANNOUNCED TUESDAY REPRESENTS JAPAN'S FOURTH ATTEMPT IN EIGHTEEN MONTHS TO REV UP THE ECONOMY THE CENTERPIECE IS FIVE POINT EIGHT FIVE TRILLION YEN IN TAX CUTS INCLUDING FIVE POINT FOUR SEVEN TRILLION YEN IN NATIONAL AND LOCAL INCOME TAX REDUCTIONS OTHER TAX BREAKS INCLUDE REDUCING NEW CAR SALES TAX TO THREE PERCENT FROM FOUR POINT FIVE PERCENT A MOVE THAT COULD BOOST SALES BY FIFTY THOUSAND VEHICLES A YEAR IN ADDITION THE PACKAGE CALLS FOR SEVEN POINT TWO TRILLION YEN IN SPENDING AND INVESTMENT FOR ITEMS SUCH AS HOME FINANCING AND NEW MEDICAL AND RESEARCH FACILITIES THE STEPS ALSO INCLUDE CHEAP LOANS AND OTHER HELP FOR SMALL BUSINESSES UNLIKE PREVIOUS PACKAGES THIS ROUND ALSO HAS SIZABLE PROVISIONS TO STIMULATE THE MORIBUND LAND MARKET AND TO HELP BANKS RESTRUCTURE BAD LOANS ANALYSTS WARN HOWEVER THESE MEASURES WON'T BE SUFFICIENT TO SOLVE MANY OF THE PROBLEMS AFFECTING THE JAPANESE BANKING AND REAL ESTATE SECTORS WHICH ARE A DRAG ON GROWTH LAND WILL BE PURCHASED BY A PRIVATE ENTITY WHICH WILL RECEIVE A FIVE HUNDRED BILLION YEN GOVERNMENT GUARANTEE PLUS SUBSIDIES AND NO INTEREST LOANS IN ORDER TO BUY UP LAND AND WAREHOUSE IT UNTIL NEEDED THE GOVERNMENT ALSO WILL LET THE BANKS SET UP SPECIAL COMPANIES TO TAKE OVER QUOTE RESTRUCTURED QUOTE OR LOW INTEREST LOANS WHICH WILL THEN BE SOLD BACK TO THE BANKS AT A LOWER VALUE IN THE FORM OF BONDS THE BANK WILL BE ALLOWED TO MOVE THE LOAN OFF ITS BOOKS AND TAKE TAX WRITE OFFS THAT WILL FREE UP FUNDS FOR NEW LENDING ECONOMISTS EXPECT THESE MEASURES TO PROVIDE ENOUGH OF A JOLT TO BUSINESS ACTIVITY TO KEEP THE ECONOMY AFLOAT THIS YEAR BUT THE EFFECT MIGHT NOT BE FELT UNTIL JUNE OR LATER AND EVEN THEN NO ONE EXPECTS THE PACKAGE TO KILL OFF JAPAN'S SLUMP WHICH BEGAN NEARLY THREE YEARS AGO THE CONSENSUS EVEN WITH THE PACKAGE JAPAN'S ECONOMY WILL GROW LESS THAN ONE PERCENT IN NINETEEN NINETY FOUR WHAT'S MORE BUSINESS LEADERS AND ECONOMISTS WORRY THAT THE LAST MINUTE COMPROMISE ON THE INCOME TAX REDUCTION MAY HINDER ITS IMPACT ON CONSUMER SPENDING A T. V. NEWS PROGRAM ESTIMATED THAT A TYPICAL FAMILY OF FOUR EARNING FORTY SIX THOUSAND DOLLARS A YEAR WILL POCKET JUST THREE HUNDRED SEVENTY FIVE DOLLARS IN TAX SAVINGS LAST WEEK MR. HOSOKAWA UNVEILED A PLAN TO CUT TAXES BY SIX TRILLION YEN A YEAR TO BE OFFSET THREE YEARS LATER BY MORE THAN DOUBLING THE NATION'S SALES TAX MR. HOSOKAWA'S SOCIALIST ALLIES THREATENED TO BOLT FROM HIS GOVERNMENT IF LEVIES WERE RAISED WHILE THE CONSERVATIVE FINANCE MINISTRY RESISTED RAISING TAXES WITHOUT SOME GUARANTEE OF HIGHER LEVIES LATER THE FINAL SOLUTION SPLIT THE DIFFERENCE THE NATIONAL INCOME TAX CUT RETROACTIVE TO JANUARY FIRST WILL BE EFFECTIVE FOR JUST THIS YEAR LATER THIS YEAR LEADERS PROMISED TO DECIDE WHETHER TO EXTEND THE REDUCTION AND HOW TO PAY FOR IT THE TAX REDUCTIONS WILL BE RETURNED TO CONSUMERS IN TWO CHUNKS ONE IN JUNE AND ONE IN DECEMBER THE GOVERNMENT WILL ISSUE ROUGHLY SIX TRILLION YEN IN BONDS TO BRIDGE THE REVENUE SHORTFALL SCANDINAVIAN AIRLINES SYSTEM CONFIRMED IT IS SELLING ITS FORTY TWO PERCENT STAKE IN CHILEAN AIRLINE LAN CHILE TO TWO OTHER CHILEAN COMPANIES INVERSIONES COSTA VERDE S. A. AND TRANSNET S. A. AN S. A. S. SPOKESMAN SAID THE TWO COMPANIES ARE PAYING NINETEEN MILLION DOLLARS FOR THE NINETY FIVE MILLION SHARES THE SPOKESMAN SAID S. A. S. PAID THIRTY MILLION DOLLARS FOR THE STAKE FIVE YEARS AGO HOWEVER S. A. S. IS LIKELY TO REALIZE A SMALL CAPITAL GAIN ON THE SALE DUE TO THE DEPRECIATION OF THE SWEDISH KRONA IF WALL STREET'S MILLION DOLLAR BANKERS CARP ABOUT NOT BEING PAID ENOUGH IT MAY BE BECAUSE THEY KEEP CLOSE TABS ON THE COMPENSATION OF THEIR BOSSES THE BROKERAGE FIRM CHAIRMEN THE NINETEEN NINETY THREE TAKE HOME PAY OF TOP BROKERAGE HOUSE OFFICIALS WILL REMAIN TOP SECRET UNTIL CORPORATE PROXY STATEMENTS ARE RELEASED IN APRIL BUT SOME CLUES ARE OFFERED BY SECURITIES AND EXCHANGE COMMISSION QUOTE INSIDER QUOTE FILINGS UNDER S. E. C. REGULATIONS THAT TOOK EFFECT IN NINETEEN NINETY TWO CORPORATE INSIDERS HAVE TO FILE NOT ONLY THEIR STOCKHOLDINGS IN THEIR OWN COMPANIES BUT ALSO THEIR OPTIONS GRANTS AND THE POTENTIAL WEALTH THE OPTIONS REPRESENT ROBERT GREENHILL FOR INSTANCE HIRED IN JUNE AS CHAIRMAN OF SMITH BARNEY SHEARSON THE BROKERAGE UNIT OF TRAVELERS INCORPORATED RECEIVED NINETEEN NINETY THREE COMPENSATION THAT INCLUDED OPTIONS ON ONE MILLION THREE HUNDRED THIRTY THREE THOUSAND SHARES THE OPTIONS ENABLE HIM TO BUY SMITH BARNEY STOCK AT THIRTY FOUR DOLLARS AND FIFTY CENTS A SHARE THEY VEST IN SEGMENTS OVER FIVE YEARS BUT THE FIRST TRANCHE WOULD YIELD MR. GREENHILL AN IMMEDIATE PRETAX PROFIT GIVEN SMITH BARNEY'S CLOSE YESTERDAY AT THIRTY NINE DOLLARS AND TWENTY FIVE CENTS A SHARE OF FOUR DOLLARS AND SEVENTY FIVE CENTS EACH AS PART OF HIS NINETEEN NINETY THREE COMPENSATION PAINEWEBBER GROUP INCORPORATED CHAIRMAN DONALD MARRON RECEIVED OPTIONS TO BUY ONE HUNDRED TWENTY FIVE THOUSAND SHARES OF COMPANY STOCK AT TWENTY SEVEN DOLLARS EACH WHICH WAS ALSO YESTERDAY'S CLOSING PRICE THOSE OPTIONS WERE IN ADDITION TO FOUR HUNDRED FORTY NINE THOUSAND EIGHT HUNDRED FIFTY OPTIONS HE ALREADY OWNED THAT ARE EXERCISABLE AT PRICES AS LOW AS NINE DOLLARS AND EIGHTY THREE CENTS EACH STILL THE VALUE OF THESE HUGE OPTIONS HOLDINGS ALSO ARE VULNERABLE TO MARKET SWINGS LAST FRIDAY AS THE DOW JONES INDUSTRIAL AVERAGE SANK NINETY SIX POINT TWO FOUR POINTS INVESTORS TRIMMED TWO DOLLARS TO THREE DOLLARS A SHARE OFF MANY BROKERAGE HOUSE STOCKS IN THE WIDESPREAD BELIEF THAT SECURITIES FIRMS WOULD SUFFER UNDULY IN ANY MARKET CORRECTION THOUGH THE MARKET HAS RECOVERED SOMEWHAT SINCE THEN MOST BROKERAGE STOCKS HAVEN'T THE SHARES OF MERRILL LYNCH AND COMPANY THE NATION'S LARGEST BROKERAGE FIRM SLID TWO POINT EIGHT SEVEN FIVE DOLLARS TO FORTY ONE POINT THREE SEVEN FIVE DOLLARS ON FRIDAY THE STOCK CLOSED YESTERDAY AT FORTY ONE POINT SIX TWO FIVE DOLLARS FOR MERRILL LYNCH CHAIRMAN DANIEL TULLY THE VALUE OF THE TWO HUNDRED SIXTY ONE THOUSAND SIX HUNDRED THIRTY SEVEN SHARES HE OWNS HAS SHRUNK BY SIX HUNDRED FIFTY FOUR THOUSAND NINETY TWO DOLLARS AND FIFTY CENTS THE VALUE OF HIS OPTIONS ASSUMING EACH OF HIS OPTIONS FOR ONE POINT FIVE MILLION SHARES WERE EXERCISED AT THIRTY THREE DOLLARS AND EIGHTY TWO CENTS OR BELOW HAS SLID BY OVER FOUR MILLION DOLLARS MR. TULLY DECLINED TO COMMENT BUT A COMPANY SPOKESMAN SAID MR. TULLY TAKES A LONG TERM VIEW AND DOES NOT CONCERN HIMSELF WITH DAILY OR SHORT TERM FLUCTUATIONS IN THE MARKET THE BROKERAGE FIRM ADDED THAT ITS STOCK OPTIONS PROGRAM APPLIES TO ANYONE RECEIVING A BONUS PACKAGE INCLUDING VICE PRESIDENTS AND THAT OPTIONS ARE AN INTEGRAL PART OF OUR COMPENSATION PROGRAM FOR EXECUTIVES WE HAVE NO PLANS TO DISCONTINUE THEIR USE SIMILARLY MR. GREENHILL OF SMITH BARNEY SHEARSON WAS POTENTIALLY MUCH BETTER OFF LAST THURSDAY WHEN TRAVELERS STOCK CLOSED AT FORTY TWO DOLLARS OR TWO DOLLARS AND SEVENTY FIVE CENTS HIGHER THAN YESTERDAY THE STOCK'S DECLINE RESULTS IN A SIX POINT FIVE PERCENT REDUCTION IN HIS POTENTIAL PROFIT ON THE OPTIONS HE COULD EXERCISE IMMEDIATELY OTHER BROKERAGE FIRMS HAVE BEGUN MOVING AWAY FROM STOCK OPTION GRANTS IN RECENT YEARS BEAR STEARNS COMPANIES FOR INSTANCE ELIMINATED ITS STOCK OPTION PROGRAM IN NINETEEN EIGHTY NINE REPLACING IT WITH A STOCK PURCHASE PROGRAM MORGAN STANLEY AND COMPANY HASN'T AWARDED THEM SINCE NINETEEN NINETY ALTHOUGH CHAIRMAN RICHARD FISHER STILL HOLDS OPTIONS ON ONE HUNDRED TWENTY SIX THOUSAND EIGHT HUNDRED EIGHTY SHARES SALOMON BROTHERS A UNIT OF SALOMON INCORPORATED PHASED THEM OUT IN NINETEEN EIGHTY EIGHT EMPLOYEES DIDN'T VALUE THEM AS HIGHLY AS THE COMPANY DID SAID CHAIRMAN ROBERT DENHAM WHO HOLDS NO OPTIONS TO PURCHASE SALOMON STOCK JAMES CAYNE BEAR STEARNS CHAIRMAN STILL HOLDS EIGHTY ONE THOUSAND TWO HUNDRED FIFTY SIX OPTIONS ISSUED IN OR BEFORE NINETEEN EIGHTY NINE HE ALSO OWNS THREE POINT TWO MILLION SHARES OF BEAR STEARNS STOCK AND HAS COMMITTED HIMSELF TO BUY ANOTHER FOUR HUNDRED FIFTY THOUSAND SHARES THROUGH THE FIRM'S STOCK PURCHASE PROGRAM THE COMPANY SAID MR. CAYNE HAS DEDICATED FIFTY PERCENT OF HIS SALARY OVER THE NEXT THREE YEARS TO STOCK PURCHASES PFIZER INCORPORATED IS ACTIVELY PURSUING AN UNPRECEDENTED ALLIANCE WITH OTHER MAJOR DRUG COMPANIES THAT WOULD SELL A POOL OF PRESCRIPTION MEDICINES TO INCREASINGLY POWERFUL PHARMACEUTICAL BUYERS SUCH AN ALLIANCE WOULD GIVE DRUG COMPANIES GREATER NEGOTIATING LEVERAGE WITH INSTITUTIONAL BUYERS SUCH AS HEALTH MAINTENANCE ORGANIZATIONS AND COMPANIES THAT MANAGE DRUG BENEFITS FOR EMPLOYERS' HEALTH PLANS THESE BUYERS ARE DEMANDING STEEP DISCOUNTS FROM DRUG COMPANIES AT A MEETING WITH SECURITIES ANALYSTS YESTERDAY HOWEVER PFIZER CHAIRMAN WILLIAM C. STEERE JUNIOR SAID THAT PUTTING TOGETHER SUCH A CONSORTIUM IS DIFFICULT BECAUSE IT IS HAMPERED BY QUOTE SQUABBLING QUOTE AND ANTITRUST CONCERNS ALTHOUGH PFIZER OFFICIALS DECLINED TO IDENTIFY OTHER DRUG MAKERS INVOLVED IN THE NEGOTIATIONS MR. STEERE AND EDWARD C. BESSEY PFIZER VICE CHAIRMAN DISCUSSED THE DIFFICULTY OF GETTING TOGETHER LARGE RESEARCH BASED COMPANIES WITH DIFFERENT CULTURAL PERSONALITIES AND NEEDS EVEN SO MR. STEERE ADDED SUCH AN ALLIANCE ISN'T OUT OF THE QUESTION THE COMPANY HE SAID IS ALSO EXPLORING ALTERNATIVES SUCH AS ACQUISITIONS AND JOINT VENTURES ONE PERSON CLOSE TO THE TALKS SAID A CONSORTIUM LED BY GLAXO INCORPORATED A UNIT OF GLAXO HOLDINGS P. L. C. AND INCLUDING PFIZER AND BRISTOL MYERS SQUIBB COMPANY AMONG OTHERS CAME CLOSE TO FRUITION LAST YEAR BUT FELL APART OVER DISAGREEMENTS CONCERNING WHICH DRUGS TO INCLUDE IN THE MARKETING POOL THE COMPANIES WERE ALSO PUT OFF BY THE PROMINENT POSITION GLAXO WANTED TO GIVE ITS ULCER DRUG ZANTAC THE PERSON SAID PFIZER AND GLAXO SPOKESMEN DECLINED TO COMMENT A BRISTOL MYERS SPOKESMAN SAID THE COMPANY COULDN'T IMMEDIATELY COMMENT EVERYONE IS TALKING TO EACH OTHER SAID HEMANT SHAH AN INDEPENDENT ANALYST BUT QUESTIONS OF HOW TO HANDLE THE LARGE NUMBER OF COMPETING DRUGS HAVE BEEN A STUMBLING BLOCK HE ADDED D. LARRY SMITH AN ANALYST AT HAMBRECHT AND QUIST SAID THAT PFIZER CAN AFFORD TO SIT BACK AND EVALUATE ITS OPTIONS AT THE ANALYSTS' MEETING HENRY MCKINNELL PFIZER'S CHIEF FINANCIAL OFFICER SAID THE COMPANY IS COMFORTABLE WITH ANALYSTS' NINETEEN NINETY FOUR PER SHARE EARNINGS ESTIMATES OF FOUR DOLLARS AND TEN CENTS TO FOUR DOLLARS AND TWENTY FIVE CENTS IN ONGOING OPERATIONS ADDING THAT THE UPPER END OF THE RANGE APPEARS SOMEWHAT OPTIMISTIC IN NINETEEN NINETY THREE THE COMPANY EARNED THREE DOLLARS AND SEVENTY CENTS A SHARE FROM ONGOING OPERATIONS THE OUTLOOK WAS TOWARD THE LOWER END OF ANALYSTS' ESTIMATES WHICH RANGED FROM FOUR DOLLARS AND FIVE CENTS TO FOUR DOLLARS AND FIFTY CENTS BEFORE THE MEETING ACCORDING TO ZACK'S INVESTMENT RESEARCH INCORPORATED PFIZER'S SALES AND EARNINGS GROWTH IN THE FIRST QUARTER WILL BE SLOWER THAN THE FULL YEAR GROWTH RATE BECAUSE OF HIGHER EXPENSES MAINLY IN RESEARCH AND ADVERSE FOREIGN CURRENCY TRANSLATIONS DOCTOR MCKINNELL SAID PFIZER'S FORECAST APPEARS TO HAVE CAUSED ITS SHARES TO FALL IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PFIZER WAS QUOTED AT FIFTY NINE POINT THREE SEVEN FIVE DOLLARS DOWN TWO DOLLARS AND TWENTY FIVE CENTS DOCTOR MCKINNELL HOWEVER SAID PFIZER EXPECTS QUOTE LOW DOUBLE DIGIT SALES GROWTH QUOTE IN ONGOING OPERATIONS FROM THE NINE PERCENT GROWTH IN NINETEEN NINETY THREE A LONG AWAITED ANALYSIS BY THE CONGRESSIONAL BUDGET OFFICE SAYS PRESIDENT CLINTON'S HEALTH CARE PLAN WOULD COST THE GOVERNMENT MORE THAN THE WHITE HOUSE PROJECTS AND WOULD INCREASE RATHER THAN DECREASE THE DEFICIT OVER ITS FIRST TEN YEARS IN ADDITION THE REPORT RAISED A NEW POLITICAL OBSTACLE FOR THE WHITE HOUSE BY LISTING ON THE FEDERAL GOVERNMENT'S BOOKS THE HEALTH INSURANCE PREMIUMS THAT BUSINESSES AND INDIVIDUALS WOULD BE REQUIRED TO PAY TO NEW REGIONAL QUOTE HEALTH ALLIANCES QUOTE THAT IS LIKELY TO GIVE AMMUNITION TO REPUBLICANS AND OTHER ADMINISTRATION CRITICS WHO CHARGE THAT THE PROPOSAL AMOUNTS TO A HUGE TAX INCREASE THE BUDGET OFFICE'S REPORT RELEASED YESTERDAY PROBABLY WILL BE THE SINGLE MOST IMPORTANT ANALYSIS OF HOW THE CLINTON PLAN HOLDS UP FINANCIALLY THAT'S BECAUSE CONGRESS WILL USE THE FINDINGS IN ITS EVALUATION OF THE ADMINISTRATION'S PROPOSAL THE ADMINISTRATION ITSELF HAS EXTOLLED THE C. B. O.'S CREDIBILITY LAST YEAR FOR INSTANCE IT TOUTED ITS USE OF C. B. O. ECONOMIC FORECASTS IN ITS BUDGET AND IN A RECENT INTERVIEW WITH FINANCIAL REPORTERS THE PRESIDENT SAID THAT WHEN CONGRESS IS IN SESSION THE C. B. O. HAS MORE POWER THAN THE FEDERAL RESERVE BOARD DESPITE ITS HIGHER COST ESTIMATES THE REPORT HOLDS A CONSIDERABLE AMOUNT OF GOOD NEWS FOR THE ADMINISTRATION IT PREDICTS LONG TERM DEFICIT REDUCTION AFTER TWO THOUSAND FOUR IT CONCLUDES THAT THE PLAN WOULD SHAVE NATIONAL HEALTH EXPENDITURES AN ESTIMATED FOUR HUNDRED THIRTEEN BILLION DOLLARS OVER FIVE YEARS BEGINNING IN TWO THOUSAND AND IT SAYS THAT BUSINESSES MANY OF WHICH HAVE BEEN CRITICAL OF THE PLAN WOULD IN FACT SEE THEIR HEALTH CARE COSTS REDUCED BY AS MUCH AS TWENTY BILLION DOLLARS A YEAR BY THE TURN OF THE CENTURY THANKS TO PROPOSED GOVERNMENT SUBSIDIES AND CAPS ON HEALTH INSURANCE PREMIUMS NOT SURPRISINGLY THE WHITE HOUSE CHOSE TO FOCUS ON THOSE FINDINGS THE VERY IMPORTANT THINGS SEEM TO BE QUITE POSITIVE SAID ALICE RIVLIN DEPUTY WHITE HOUSE BUDGET DIRECTOR AND FORMER C. B. O. DIRECTOR C. B. O. CONFIRMS THAT IT IS POSSIBLE TO COVER EVERYONE IN THE COUNTRY WITH THIS KIND OF HEALTH INSURANCE AND STILL GET THE RATE OF GROWTH OF NATIONAL HEALTH EXPENDITURES LOWER IN A FEW YEARS THEY ALSO AGREE THAT EVENTUALLY THE DEFICIT WILL COME DOWN THE C. B. O. HAD BEEN UNDER TREMENDOUS PRESSURE FROM BOTH SIDES AS IT REVIEWED THE CLINTON PLAN AND ITS REPORT REFLECTS A CAREFUL BALANCING ACT ONE TROUBLESOME ISSUE FOR THE ADMINISTRATION IS ITS CONCLUSION THAT THE ADMINISTRATION PLAN WOULD INCREASE THE FEDERAL BUDGET DEFICIT BY SEVENTY FOUR BILLION DOLLARS OVER THE FIRST SIX YEARS AFTER ITS ENACTMENT THE WHITE HOUSE ESTIMATES THAT ITS PLAN WOULD SHRINK THE BUDGET GAP BY FIFTY EIGHT BILLION DOLLARS DURING THAT PERIOD THE MAIN REASON FOR THE DIFFERENCE IS THAT THE C. B. O. BELIEVES THE ADMINISTRATION SUBSTANTIALLY UNDERESTIMATED THE COST OF THE SUBSIDIES TO HELP SMALL AND LOW WAGE EMPLOYERS AFFORD REQUIRED HEALTH INSURANCE PAYMENTS BY TWO THOUSAND WHEN THE WHITE HOUSE PLAN WOULD BE FULLY PHASED IN THE C. B. O. SAYS THE SUBSIDIES WOULD COST FIFTY EIGHT BILLION DOLLARS TWENTY FIVE BILLION DOLLARS MORE THAN THE ADMINISTRATION ESTIMATES THE HIGHER SUBSIDY COSTS IN TURN REFLECT THE C. B. O.'S CONCLUSION THAT PREMIUMS TO PAY FOR A COMPREHENSIVE BENEFITS PACKAGE GUARANTEED ALL AMERICANS WOULD BE ABOUT FIFTEEN PERCENT HIGHER THAN THE ADMINISTRATION ESTIMATES MOREOVER THE REPORT SUGGESTS THAT AN ADMINISTRATION PROPOSAL TO LIMIT THE GOVERNMENT'S FINANCIAL LIABILITY BY PLACING A CEILING ON OVERALL AMOUNT OF THE FEDERAL SUBSIDY PAYMENTS COULD FAIL THE C. B. O. ANALYSIS CALCULATES THAT THE SUBSIDY PAYMENTS WOULD EXCEED THE PROPOSED CEILING AS EARLY AS NINETEEN NINETY SEVEN AND THAT THE DISCREPANCY WOULD GROW SHARPLY AFTER THE YEAR TWO THOUSAND THE CUMULATIVE OVERRUN WOULD EQUAL ABOUT TWO HUNDRED EIGHTY THREE BILLION DOLLARS THROUGH TWO THOUSAND FOUR MR. REISCHAUER SAID UNDER QUESTIONING THE NET DEFICIT IMPACT WOULD BE LESS BECAUSE THE C. B. O. AGREES WITH THE ADMINISTRATION THAT LARGE SAVINGS CAN BE REALIZED FROM MEDICAID STILL LAWMAKERS WILL HAVE TO RECONCILE THIS DISCREPANCY IF THE CAPS ARE TO BE MEANINGFUL IN THE FINAL LEGISLATION THE BUDGET OFFICE'S COST ESTIMATES ARE BASED ON THE ASSUMPTION THAT THE CAPS THE ADMINISTRATION WOULD PLACE ON PRIVATE HEALTH INSURANCE PREMIUMS CAN BE EFFECTIVELY IMPOSED BUT THE REPORT CALLS INTO QUESTION WHETHER SUCH STRINGENT CEILINGS WHICH WOULD HOLD THE GROWTH OF PREMIUMS AND PUBLIC SPENDING TO THE GENERAL INFLATION RATE PLUS GROWTH IN POPULATION WOULD BE POLITICALLY PALATABLE THE FULL EFFECTS OF LIMITING THE RATE OF GROWTH OF PREMIUMS WOULD BE HIGHLY UNCERTAIN THE C. B. O. SAYS THE ISSUE OF WHETHER TO COUNT THE REQUIRED EMPLOYER AND INDIVIDUAL PAYMENTS AS GOVERNMENT RECEIPTS HAS GENERATED ENORMOUS ATTENTION THROUGHOUT WASHINGTON THE C. B. O. REPORT SAYS THE REGIONAL HEALTH ALLIANCES WHICH WOULD COLLECT INSURANCE PAYMENTS FROM BUSINESSES AND INDIVIDUALS WOULD OPERATE PRIMARILY AS AGENTS OF THE FEDERAL GOVERNMENT CONSEQUENTLY ACCORDING TO THE C. B. O. THEIR FINANCIAL TRANSACTIONS QUOTE SHOULD BE INCLUDED IN THE FEDERAL GOVERNMENT'S ACCOUNTS AND PREMIUM PAYMENTS SHOULD BE SHOWN AS GOVERNMENTAL RECEIPTS QUOTE PRESIDENT CLINTON WHO WAS TOUTING HIS PLAN IN SHREVEPORT LOUISIANA BRUSHED ASIDE THAT ASPECT OF THE C. B. O. REPORT WE'LL FIX THAT THAT'S NOT A PROBLEM HE SAID NO SERIOUS PERSON OUT HERE IN THE REAL WORLD WOULD BE TROUBLED BY THAT THE REPORT UNDERSCORES THE IMMENSITY OF THE CLINTON HEALTH CARE ENDEAVOR BY TWO THOUSAND FOUR THE ALLIANCES TO BE ESTABLISHED UNDER THE PLAN WOULD COLLECT ALMOST SEVEN HUNDRED FIFTY BILLION DOLLARS IN ANNUAL PREMIUMS FROM EMPLOYERS AND HOUSEHOLDS THE EQUIVALENT OF NEARLY THREE CURRENT PENTAGON BUDGETS EXAMINING THE POTENTIAL IMPACT OF THE PLAN ON THE ECONOMY AT LARGE THE C. B. O. PREDICTS THAT SAVINGS BUSINESSES REALIZE IN HEALTH CARE EXPENDITURES WOULD BE LARGELY PASSED ON TO WORKERS IN THE FORM OF HIGHER WAGES BUT IT WARNS THAT THE SIZE OF THE WORK FORCE COULD BE DECREASED BY ZERO POINT TWO FIVE PERCENT TO ONE PERCENT MAINLY BECAUSE GREATER NUMBERS OF PEOPLE FREED OF WORRY ABOUT BEING ABLE TO OBTAIN HEALTH COVERAGE WOULD DECIDE TO RETIRE EARLY THE REPORT SAYS THE RESULT COULD REDUCE OVERALL ECONOMIC OUTPUT BY ZERO POINT TWO PERCENT TO ZERO POINT SEVEN PERCENT REPUBLICANS WERE QUICK TO ARGUE THAT THE REPORT SERIOUSLY DAMAGES THE CLINTON HEALTH PLAN SAYING THAT IT BRANDS THE PRESIDENT'S PROPOSED MANDATORY HEALTH PREMIUMS AS TAX INCREASES I THINK IT IS NO LONGER A SERIOUS PLAYER SAID HOUSE MINORITY WHIP NEWT GINGRICH OF GEORGIA OF THE ADMINISTRATION'S PLAN THEY ARE IN FACT SAYING THIS IS A TAX BUT SOME DEMOCRATS SAID THEY AREN'T CONCERNED QUOTE I DON'T THINK IT'S A BOTHER AT ALL QUOTE SAID WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI OF ILLINOIS OF THE C. B. O. REPORT I THINK HE MR. REISCHAUER DID US A FAVOR BY PUTTING THE NUMBERS ON THE TABLE I'D RATHER HAVE IT OUT THERE THAN HAVE TO SKIRT IT FOR MONTHS WHILE PEOPLE CARP WHILE MR. REISCHAUER SAID COST PROJECTION TECHNIQUES HAVE IMPROVED SINCE THE GREAT SOCIETY PROGRAMS OF THE NINETEEN SIXTIES HE WAS FRANK TO ADMIT HE MIGHT END UP A LITTLE OUTSIDE THE BALLPARK BY THE TIME TWO THOUSAND FOUR ARRIVES WE'RE IN THE TOWN THE BALLPARK IS IN HE SAID EARTH TECHNOLOGY CORPORATION AGREED TO ACQUIRE SUMMIT ENVIRONMENTAL GROUP INCORPORATED IN A STOCK SWAP BOTH COMPANIES ARE ENVIRONMENTAL ENGINEERING AND CONSULTING CONCERNS SUMMIT IS CLOSELY HELD AND IS BASED IN CANTON OHIO EARTH TECHNOLOGY WHICH HAS THREE MILLION COMMON SHARES OUTSTANDING WILL ISSUE ABOUT THREE POINT TWO SIX TWO MILLION NEW SHARES IN THE TRANSACTION THOUGH THE NUMBER OF SHARES MAY BE REDUCED TO LESS THAN TWO POINT EIGHT MILLION BASED ON EARTH TECHNOLOGY'S STOCK PERFORMANCE ON THE NASDAQ STOCK MARKET EARTH TECHNOLOGY SHARES CLOSED AT THIRTEEN DOLLARS AND TWENTY FIVE CENTS UP THIRTY SEVEN POINT FIVE CENTS ON A PRO FORMA BASIS THE TWO COMPANIES HAD COMBINED REVENUE OF ONE HUNDRED FIFTY MILLION DOLLARS IN FISCAL NINETEEN NINETY THREE EARTH TECHNOLOGY ALONE HAD REVENUE OF SIXTY TWO POINT NINE MILLION DOLLARS FOR THE FISCAL YEAR ENDED LAST AUGUST TWENTY SEVENTH HE R. O. GROUP LIMITED NEW YORK HAROLD BLATTER SIXTY TWO YEARS OLD WAS NAMED VICE PRESIDENT INTERNATIONAL SOURCING AND PRODUCTION A NEW POSITION AT THIS WOMEN'S APPAREL MANUFACTURER MR. BLATTER HAS BEEN AN INDEPENDENT CONSULTANT TO THE APPAREL INDUSTRY SINCE EARLY NINETEEN NINETY THREE AND BEFORE THAT VICE PRESIDENT OVERSEAS OPERATIONS AT THE WARREN GROUP SMALL BUSINESS EXECUTIVES FAMILIAR WITH THE EMERGING INFORMATION SUPERHIGHWAY THINK IT WILL MAKE THEM MORE PRODUCTIVE AND RICHER A SURVEY SHOWS BUT FIFTY TWO PERCENT OF THE EXECUTIVES WEREN'T FAMILIAR WITH THE CONCEPT AT ALL THE INTERNATIONAL BUSINESS MACHINES CORPORATION SURVEY FOUND THE STUDY IS ONE OF THE MOST COMPREHENSIVE TO DATE OF SMALL BUSINESS'S ATTITUDE TOWARD THE IDEA OF A COMMUNICATIONS NETWORK THAT ELECTRONICALLY DELIVERS A WIDE VARIETY OF SERVICES THE SURVEY WAS CONDUCTED IN JANUARY AND CANVASSED FIVE HUNDRED FOURTEEN EXECUTIVES OF SMALL BUSINESSES WITH ANNUAL REVENUE OF FIVE MILLION DOLLARS TO NINETY NINE MILLION DOLLARS OF EXECUTIVES FAMILIAR WITH THE SUPERHIGHWAY CONCEPT SEVENTY FOUR PERCENT SAW IT AS A POTENTIAL ASSET THE SURVEY REPORTED THAT THE MOST COMMON USES SMALL COMPANIES SAID THEY WOULD FIND FOR THE SUPERHIGHWAY WOULD BE THE ABILITY TO TAKE OR PLACE BUSINESS ORDERS CONDUCT VIDEOCONFERENCING CHECK THE MARKET PRICES OR AVAILABILITY OF RAW MATERIALS AND ANALYZE CASH FLOWS OTHER FAVORED POTENTIAL USES INCLUDED CREATING AND SENDING MANUFACTURING AND DESIGN SPECIFICATIONS TO STAFF VENDORS AND CUSTOMERS GAINING ACCESS TO IMMEDIATE INVENTORY MANAGEMENT MAKING COMPETITIVE BIDS CONDUCTING BANKING AND STOCK MARKET TRANSACTIONS PAYING TAXES AND GAINING ACCESS TO IMAGE TECHNOLOGY QUOTE ONE OF THE KEY THINGS THAT DIFFERENTIATES THE SMALL BUSINESS FROM THE LARGE BUSINESS IS ACCESSIBILITY TO NEW CUSTOMERS QUOTE SAYS COREY SMITH PRESIDENT OF CREATIVE MULTIMEDIA CORPORATION A SMALL PORTLAND OREGON MAKER OF C. D. ROM SOFTWARE THE INFORMATION SUPERHIGHWAY ALLOWS US TO HAVE ACCESS TO THE KIND OF CONSUMER BASE LARGE COMPANIES CAN GET TO SOME SEVENTY PERCENT OF EXECUTIVES FAMILIAR WITH THE INFORMATION SUPERHIGHWAY PREDICTED THAT IT WOULD INCREASE THEIR PROFITS ABOUT FIFTY FIVE PERCENT SAID THAT THE SUPERHIGHWAY WOULD DRAMATICALLY CUT COSTS ASSOCIATED WITH DOING BUSINESS THESE RESPONDENTS ALSO SAID THE SUPERHIGHWAY WOULD ALLOW THEM TO EXPAND THEIR MARKETS ALMOST TWO THIRDS OF THEM SAID IT WOULD ENHANCE THEIR ABILITY TO EXPAND GLOBALLY AND SIXTY TWO PERCENT SAID IT WOULD PERMIT THEM TO MAKE COMPETITIVE BIDS TO WHICH THEY NORMALLY DON'T HAVE ACCESS DESPITE THIS ENTHUSIASM MOST RESPONDENTS FAMILIAR WITH THE SUPERHIGHWAY SAID THAT IT WOULD TAKE AT LEAST THREE TO TEN YEARS FOR IT TO BECOME A REALITY FOR MOST SMALL BUSINESSES SOME NINETY PERCENT OF THOSE SURVEYED SAID THEY ARE TAKING A WAIT AND SEE APPROACH ABOUT TAKING THEIR OWN BUSINESS ONTO THE SUPERHIGHWAY ONLY SIX PERCENT SAY THEY ARE TAKING IMMEDIATE STEPS TO MAKE IT EASIER FOR THEM TO BECOME HOOKED INTO A POTENTIAL SUPERHIGHWAY THIS HESITATION ABOUT THE HIGHWAY MAY SIMPLY COME FROM SMALL BUSSINESS' LACK OF FAMILIARITY WITH IT QUOTE I DON'T THINK I KNOW ENOUGH TO COMMENT ABOUT THE INFORMATION SUPERHIGHWAY QUOTE SAID RALPH MURRAY CHIEF EXECUTIVE OF IDL INCORPORATED A PITTSBURGH MAKER OF STORE DISPLAYS MY OWN IDEA OF IT IS VERY VAGUE WESTINGHOUSE ELECTRIC CORPORATION IN ANOTHER BREAK FROM THE PAST NAMED FREDRIC G. REYNOLDS A PEPSICO INCORPORATED EXECUTIVE CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT MR. REYNOLDS'S APPOINTMENT FOLLOWS BY SEVEN MONTHS THE NAMING OF ANOTHER OUTSIDER MICHAEL H. JORDAN TO BE CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR. JORDAN AND MR. REYNOLDS WORKED TOGETHER AT PEPSICO WHERE THE FORTY THREE YEAR OLD MR. REYNOLDS MOST RECENTLY WAS CHIEF FINANCIAL OFFICER OF PEPSICO FOODS INTERNATIONAL HE SUCCEEDS WARREN H. HOLLINSHEAD WHOSE TIES TO FORMER CHAIRMAN PAUL E. LEGO WERE CONSIDERED BY ANALYSTS TO BE TOO STRONG MR. LEGO'S MANAGEMENT TEAM LACKED CREDIBILITY ON WALL STREET MR. HOLLINSHEAD FIFTY EIGHT IS RETIRING IN A STATEMENT MR. JORDAN WHO IS ATTEMPTING TO REVIVE WESTINGHOUSE'S SLUGGISH OPERATIONS AND REVAMP ITS FINANCES SAID MR. REYNOLDS QUOTE BRINGS STRONG OPERATIONAL EXPERIENCE AND A STRATEGIC FINANCIAL BACKGROUND THAT WE NEED TO HELP US ACHIEVE FINANCIAL CREDIBILITY AND A STRONG PERFORMANCE CULTURE AT WESTINGHOUSE QUOTE HE ALSO NOTED THAT MR. REYNOLDS HAS A STRONG INTERNATIONAL BACKGROUND MUCH OF MR. JORDAN'S BUSINESS EXPERIENCE LIES IN THE INTERNATIONAL ARENA WHICH IS ONE OF HIS CHIEF FOCUSES FOR WESTINGHOUSE MAUREEN P. LENTZ AN ANALYST WITH ROULSTON AND COMPANY IN CLEVELAND CALLED WESTINGHOUSE'S DECISION TO REACH OUTSIDE THE COMPANY FOR A CHIEF FINANCIAL OFFICER A GOOD MOVE BECAUSE IT REPRESENTS A BREAK WITH THE PAST ONE OF THE FIRST CHALLENGES MR. REYNOLDS WILL FACE IS HELPING THE COMPANY SELL FIVE HUNDRED MILLION DOLLARS IN PREFERRED STOCK CONSIDERED BY MR. JORDAN TO BE CRUCIAL FOR THE COMPANY'S GROWTH MR. REYNOLDS ALSO WILL FACE A HUGE TASK IN AIDING MR. JORDAN'S PLAN TO SQUEEZE EARNINGS GROWTH FROM WHAT ARE CONSIDERED BY MANY TO BE SLOW GROWTH BUSINESSES MIRED IN AN INBRED CULTURE WESTINGHOUSE'S CORE BUSINESSES INCLUDE POWER GENERATION BROADCASTING ELECTRONIC SYSTEMS AND THERMO KING A TRANSPORTATION REFRIGERATION COMPANY PRESIDENT PAUL M. BROCKMAN LEFT THE COMPANY WHICH SAID IT EXPECTS TO POST A NET LOSS IN THE FOURTH QUARTER BECAUSE OF LOWER THAN EXPECTED SALES HAMBURGER HAMLET'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THOMAS A. MCFALL WHO ASSUMES THE ADDITIONAL TITLE OF PRESIDENT SAID MR. BROCKMAN HAS LEFT TO QUOTE PURSUE OTHER BUSINESS OPPORTUNITIES QUOTE MR. BROCKMAN COULDN'T BE REACHED FOR COMMENT DAVID R. FOX EXECUTIVE VICE PRESIDENT WAS NAMED TO THE NEW POST OF CHIEF OPERATING OFFICER CHARLENE BARSHEFSKY'S COLLEAGUES CALL HER QUOTE STONEWALL QUOTE A TRIBUTE TO THE U. S. OFFICIAL'S TENACITY IN TRADE NEGOTIATIONS SO WHEN SOZABURO OKAMATSU A JAPANESE BUREAUCRAT MET HER FOR TALKS LAST YEAR HE WANTED TO SHOW HE WAS TOUGH TOO IF YOU'RE MRS. STONEWALL I'M MR. STONEWALL HE TOLD MS. BARSHEFSKY WHO QUICKLY TOLD HER COLLEAGUES TO CUT OUT THE NICKNAMES THE LAST THING WE WANT IS FOR JAPAN TO THINK IT'S ALL RIGHT TO STONEWALL BUT AS THE TWO GOVERNMENTS RACE THE CLOCK TO TRY TO REACH A NEW TRADE AGREEMENT BY FRIDAY THAT IS PRECISELY WHAT EACH SIDE IS RUNNING INTO A STONE WALL JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA AND PRESIDENT CLINTON WILL TRY TO SIGN OFF ON A SIGNIFICANT TRADE DEAL BASED LARGELY ON THE TWO NEGOTIATORS' WORK AND IN THE RUN UP TO THE SUMMIT IN WASHINGTON THE TWO SIDES STILL FACE GAPING AREAS OF DISAGREEMENT CHIEFLY OVER THE U. S. INSISTENCE THAT JAPAN COMMIT TO NUMERICAL GOALS FOR RAISING IMPORTS THE CLINTON ADMINISTRATION WHICH LAST SUMMER TRUMPETED AN EMERGING BREAKTHROUGH WITH JAPAN STILL FINDS THAT IT MUST REDEFINE THE VERY FOUNDATIONS OF THE U. S. JAPAN TRADE RELATIONSHIP AMERICAN OFFICIALS SAY PAST DEALS HAVE DONE LITTLE TO PRY OPEN JAPAN'S CLOSED MARKETS AND DESPITE EARLY HOPES THIS ONE DOESN'T LOOK MUCH MORE PROMISING THE PROBLEM WASHINGTON COMPLAINS IS INTRANSIGENT CAREER MANDARINS WHO TRY TO TALK AMERICANS TO DEATH SUCH AS MR. OKAMATSU THE JAPANESE CONTEND THE CLINTONITES ARE WRONGLY EVEN DANGEROUSLY TRYING TO DICTATE THE TERMS OF TRADE THE PROBLEM TOKYO COMPLAINS IS THAT U. S. POLICY IS SHAPED BY LAWYERS WITH LITTLE UNDERSTANDING OF JAPAN SUCH AS MS. BARSHEFSKY THE JAPANESE LOOK AT POLICIES IN THEIR HISTORICAL PERSPECTIVE SAYS NOBORU HATAKEYAMA A RECENTLY RETIRED NEGOTIATOR AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY HOWEVER IN THE CASE OF THE U. S. ALMOST ALL OF THEIR NEGOTIATORS SEEM LIKE THEY CAME IN JUST YESTERDAY BUREAUCRATIC FLIMFLAM REPLIES BOWMAN CUTTER DEPUTY DIRECTOR OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL U. S. POLITICAL APPOINTEES CAN MOVE FAST HE SAYS WHILE THE PACE OF CHANGE IS OCCURRING MUCH MORE RAPIDLY THAN THE SENIOR CIVIL SERVANTS IN THE JAPANESE MINISTRIES ARE ABLE TO ADJUST TO THE STAKES ARE HUGE SUCCESS WOULD EASE LONGSTANDING TENSIONS CREATE BILLIONS OF DOLLARS IN BUSINESS FOR AMERICANS AND ACCELERATE A MUCH NEEDED RESTRUCTURING OF JAPAN'S ECONOMY A PROLONGED TRADE BATTLE BETWEEN THE WORLD'S TWO LARGEST ECONOMIES COULD RAISE THE PRICE OF IMPORTS AND HOBBLE JOINT VENTURES BETWEEN U. S. AND JAPANESE COMPANIES ULTIMATELY A FIGHT COULD EVEN UNDERMINE THE U. S. JAPANESE POLITICAL ALLIANCE WHILE NORTH KOREA LOOMS AS A MILITARY THREAT AND RUSSIA'S OWN CHAOS IS MENACING AS WELL MS. BARSHEFSKY AND MR. OKAMATSU EMBODY THE STRENGTHS AND WEAKNESSES OF THEIR COUNTRIES AND ILLUSTRATE HOW THE TWO SIDES ARE TRYING TO REACH AN AGREEMENT AND WHY THEY ARE FLOUNDERING EACH MAKES DEMANDS THAT FEED INTO THE OTHER'S FEARS LEAVING EACH SEARCHING FOR MORE SENIOR OFFICIALS FIXERS WHO WILL OVERRIDE THE NEGOTIATORS IN THE END THE TWO HEADS OF STATE JUST MIGHT BREAK THE IMPASSE THE NEGOTIATORS COULDN'T DIFFER MORE HE IS A FIFTY SIX YEAR OLD JAPANESE WHO GREW UP DURING THE AMERICAN OCCUPATION AND RECALLS EATING POWDERED EGGS DISTRIBUTED BY G. I.S SHE'S A FORTY THREE YEAR OLD AMERICAN BABY BOOMER WHO QUOTES JOHN LENNON TO EXPLAIN HER NEGOTIATING STYLE HE IS A MEMBER OF JAPAN'S GOVERNMENT ELITE A TOKYO UNIVERSITY GRADUATE THE SON OF A M. I. T. I. VICE MINISTER WHO HAS SPENT THIRTY FOUR YEARS CLIMBING THE RANKS AT M. I. T. I. UNTIL HE BECAME VICE MINISTER FOR INTERNATIONAL AFFAIRS SHE IS THE DAUGHTER OF IMMIGRANTS WHO MADE HER MARK AS A HIGH PRICED TRADE LAWYER WITH BLUE CHIP CLIENTS AND JOINED THE GOVERNMENT ONLY LAST YEAR HE SPEAKS SO SOFTLY THAT HE HAD TO UTTER THE THREAT OF QUOTE RETALIATION QUOTE TWICE BEFORE ANY REPORTERS AT A NEWS CONFERENCE NOTICED SHE IS AS BLUNT AS AN EXCLAMATION POINT AT MS. BARSHEFSKY'S CONFIRMATION HEARING AS DEPUTY U. S. TRADE REPRESENTATIVE WHEN MOST NOMINEES ARE DEFERENTIAL TO THE POINT OF OBSEQUIOUSNESS SHE TOOK ON SENATOR DONALD RIEGLE HE QUESTIONED WHETHER SHE WAS AN ECONOMIC PATRIOT AFTER THE WALL STREET JOURNAL REPORTED ABOUT HER WORK FOR FOREIGN CLIENTS I DO NOT COME TO THIS JOB TO BUILD A REPUTATION SHE LECTURED THE MICHIGAN DEMOCRAT WHOSE OWN REPUTATION WAS MARRED BY HIS S. AND L. LOBBYING I AM HERE BECAUSE I HAVE A REPUTATION SHE QUICKLY EARNED A NAME IN JAPAN AS A BRAWLER ARGUING TOE TO TOE IN TOKYO LAST JUNE WITH MR. HATAKEYAMA A M. I. T. I. MAN WIDELY REVILED BY AMERICANS AS OVERBEARING MR. CUTTER WHOSE GREAT GREAT GRANDFATHER FOUGHT IN STONEWALL JACKSON'S BRIGADE WAS SO IMPRESSED THAT HE NICKNAMED HER AFTER THE RESOLUTE SOUTHERN GENERAL THEN A MONTH LATER SHE CLASHED WITH MR. OKAMATSU WHEN THE TWO COUNTRIES WERE SETTING THE BROAD OUTLINE FOR THE FRAMEWORK ACCORD NEGOTIATORS HAD AGREED THAT JAPAN WOULD USE QUANTITATIVE INDICATORS TO MEASURE THE OPENNESS OF ITS MARKET A CRITICAL GOAL FROM WASHINGTON'S STANDPOINT BUT MS. BARSHEFSKY HAD TO QUASH A ONE A. M. EFFORT BY MR. OKAMATSU TO EASE THE TERMS ESPECIALLY AS THEY RELATED TO QUANTITATIVE MEASURES MS. BARSHEFSKY HONED HER NEGOTIATING STYLE AT THE WASHINGTON LAW FIRM STEPTOE AND JOHNSON WHERE SHE WAS CO HEAD OF THE INTERNATIONAL LAW PRACTICE SHE ADVISED BOEING COMPANY ON HOW TO ATTACK SUBSIDIES TO ITS EUROPEAN RIVAL OCCIDENTAL PETROLEUM CORPORATION ON HOW TO FEND OFF COMPLAINTS ABOUT ITS IMPORTS FROM RUSSIA AND A MEXICAN BUSINESS LOBBY ON HOW TO ASSESS PROPOSALS DURING TRADE TALKS WITH THE U. S. BUT HER JAPAN EXPERIENCE WAS PALTRY AND IN THAT RESPECT SHE SHARES AN ALL TOO COMMON FAILING IN AMERICAN GOVERNMENT LACK OF INSTITUTIONAL MEMORY AND KNOWLEDGE OF OPPONENTS BEFORE TAKING THE TRADE NEGOTIATOR'S POST SHE HAD NEVER VISITED JAPAN AND HAD LITTLE RECENT BUSINESS EXPERIENCE WITH THE COUNTRY CHALMERS JOHNSON A JAPAN EXPERT AT THE UNIVERSITY OF CALIFORNIA CONTENDS THAT EVEN AFTER THE PAST EIGHT MONTHS OF NEGOTIATIONS MS. BARSHEFSKY IS A LAMB GOING TO SLAUGHTER BUT SHE'S A QUICK STUDY SHE CAME INTO THE ADMINISTRATION NOT KNOWING MUCH ABOUT CHINA EITHER BUT SHE DEVISED THE ADMINISTRATION'S GET TOUGH STRATEGY OVER CHINESE TEXTILE SMUGGLING AND CHINA AGREED TO CONCESSIONS UNDER THREAT OF SANCTIONS MR. OKAMATSU BY CONTRAST KNOWS THE U. S. WELL LIKE MOST JAPANESE TRADE NEGOTIATORS ONE OF HIS FIRST TASKS UPON JOINING M. I. T. I. IN NINETEEN SIXTY WAS TO TRY TO EASE TRADE FRICTIONS BY OVERSEEING RESTRICTIONS ON JAPANESE EXPORTS OF LOW PRICED SILVERWARE HE LIVED IN NEW YORK FOR THREE YEARS IN THE MID NINETEEN SEVENTIES AND HAS WARM MEMORIES OF THE WAY HE AND HIS FAMILY WERE RECEIVED HE HAS SPENT MUCH OF HIS TIME SINCE THEN HANDLING BILATERAL TRADE DISPUTES IN AREAS SUCH AS SEMICONDUCTORS AND AUTO PARTS BUT MR. OKAMATSU IS UNDER FIRE TOO FOR THE OPPOSITE REASON THAT MS. BARSHEFSKY IS EVEN SOME OF HIS FANS SAY HE HAS THE COMMON FLAWS OF A BUREAUCRAT AN OVERLY CONSERVATIVE APPROACH TO PROBLEMS AND DOGGED LOYALTY TO HIS MINISTRY ABOVE ALL ELSE DURING THE EARLY NINETEEN EIGHTIES HE HELPED LEAD M. I. T. I.'S BITTER WAR WITH THE TELECOMMUNICATIONS MINISTRY OVER CONTROL OF INFORMATION INDUSTRIES MR. OKAMATSU SAYS HE WAS DRAWN TO M. I. T. I. BECAUSE QUOTE I COULD MAKE LOTS OF IMPORTANT DECISIONS AND DO IMPORTANT JOBS FROM MY YOUNGER DAYS QUOTE THAT KIND OF ATTITUDE AMONG THE NATION'S POWERFUL MANDARINS HAS SPAWNED THE COUNTRY'S WOES MANY JAPANESE BELIEVE BUREAUCRATS ARE LIKE CAVITIES MASAO OGURA THE CHAIRMAN OF A MAJOR TRANSPORTATION COMPANY WROTE IN A RECENT NEWSPAPER ESSAY THE BEST SERVICE TO THE PEOPLE IS TO PULL THEM OUT COMPLETELY AFTER THEIR TUSSLE IN TOKYO MR. OKAMATSU AND MS. BARSHEFSKY MADE UP DURING A NEGOTIATING SESSION IN HAWAII IN SEPTEMBER HE SENT FLOWERS TO HER ROOM SHE GAVE HIM A PEWTER PAPERWEIGHT WITH AN ENGRAVED EAGLE HE BROUGHT WHAT ELSE A CAMERA AIDES SNAPPED PHOTOS OF THE PAIR ON A BALCONY OVERLOOKING THE PACIFIC EVER AFTER THE U. S. NEGOTIATING TEAM CALLED THE PHOTOS THE HONEYMOON SHOTS BUT THE HONEYMOON DIDN'T LAST LONG THE NEXT MONTH THE BARSHEFSKY TEAM HANDED THE JAPANESE A U. S. PROPOSAL CALLING FOR JAPAN TO INCREASE ITS MANUFACTURING IMPORTS TO THE LEVEL OF THE BIGGEST WESTERN ECONOMIES A FEAT THAT WOULD REQUIRE AT LEAST A DOUBLING OF IMPORTS SHE INTENTIONALLY LEFT BLANKS IN THE APPENDIX SHE SAYS SO THE TWO SIDES COULD COME UP WITH WAYS TO MEASURE JAPAN'S PROGRESS BUT IT WASN'T SO EASY INSTEAD OF FILLING IN THE BLANKS THE TWO SIDES GOT INTO A NASTY FOUR MONTH WAR OF WORDS OVER THE USE OF QUANTITATIVE MEASURES THE VERY COMMITMENT THE U. S. THOUGHT IT HAD SECURED IN JULY WHAT THE JULY ACCORD ACTUALLY CALLED FOR WAS OBJECTIVE CRITERIA TO MEASURE JAPAN'S PROGRESS IN OPENING MARKETS THE TWO SIDES AGREED TO REACH THE FIRST BATCH OF AGREEMENTS THIS FRIDAY COVERING AUTOS AND AUTO PARTS INSURANCE AND GOVERNMENT PROCUREMENT OF MEDICAL AND TELECOMMUNICATIONS EQUIPMENT TO THE U. S. OBJECTIVE CRITERIA MEANT SPECIFIC IMPORT GOALS TO JAPAN ANY NUMERICAL MEASURES SHOULD BE USED ONLY AS A MEANS OF STUDYING PAST PERFORMANCE MR. OKAMATSU ARGUES THAT RATHER THAN SET SPECIFIC TARGETS IN A TRADE AGREEMENT THE TWO SIDES CAN TALK MORE ABOUT WHAT IS CAUSING THE PROBLEMS QUOTE WE CALL THIS THE COOPERATIVE APPROACH QUOTE HE SAYS NONSENSE MS. BARSHEFSKY SNAPS THAT WOULD ANALYZE THE PAST TO DEATH WITH NO LINK TO FUTURE CHANGE THEIR PHILOSOPHICAL BREACH REFLECTS MORE THAN TEN YEARS OF TRADE TENSIONS AND MOUNTING FEELINGS OF BETRAYAL BY BOTH SIDES TO THE AMERICANS THE U. S. IS TRYING TO BREAK THE PATTERN IN WHICH JAPAN WOULD REMOVE ONE TRADE BARRIER AND A NEW ONE WOULD POP UP THAT'S WHY THE U. S. IS TURNING TO IMPORT GOALS AND MEASUREMENTS TO THE JAPANESE THE U. S. IS REJECTING FREE MARKET PRINCIPLES AND SEEKING TO MANAGE TRADE BETWEEN THE COUNTRIES TWICE BEFORE MR. OKAMATSU HAGGLED OVER NUMBERS WITH THE U. S. FIRST OVER SETTING A MARKET SHARE TARGET FOR FOREIGN SEMICONDUCTORS AND LATER A DOLLAR VOLUME TARGET FOR U. S. AUTO PARTS IN BOTH CASES THE U. S. HAS REGULARLY THREATENED JAPAN WITH NEW TRADE SANCTIONS IF IT DOESN'T HIT THE NUMBERS WHICH MR. OKAMATSU SAID HE NEGOTIATED AS VOLUNTARY GOALS LESSON NUMBER ONE AND LESSON NUMBER TWO TAUGHT ME YOU SHOULDN'T USE NUMBERS HE SAYS RUEFULLY THE PLEAS OF MR. OKAMATSU AND OTHERS WON ADHERENTS IN ASIA WHERE SMALL COUNTRIES WORRIED THAT THE U. S. WOULD HIT THEM NEXT WITH DEMANDS AND IN EUROPE WHERE BIG NATIONS WORRIED THAT THE U. S. WOULD GET A LEG UP IN JAPAN THE JAPANESE CAMPAIGN AGAINST MANAGED TRADE SEEMED AUDACIOUS TO U. S. OFFICIALS M. I. T. I. HAS BEEN PERHAPS THE WORLD'S MOST SUCCESSFUL MANIPULATOR OF MARKETS MR. OKAMATSU HAS BEEN INVOLVED IN EVERYTHING FROM PROMOTING THE DOMESTIC AIRCRAFT INDUSTRY TO LAUNCHING THE FAMOUS FIFTH GENERATION ADVANCED COMPUTING PROJECT WE HAVE PROMOTED SOME INDUSTRIES HE CONCEDES QUOTE BUT THAT WAS DONE IN OPEN MARKET SITUATIONS QUOTE STILL THE TWO NEGOTIATORS WORKED ON THEIR PERSONAL RELATIONSHIP HOPING THAT AN AMIABLE BOND WOULD HELP THEM REACH A COMPROMISE WHEN NOT IN A BUSINESS MODE BOTH ARE WARM AND FUNNY DURING LONG NEGOTIATING SESSIONS MS. BARSHEFSKY TALKED ABOUT HER TWO YOUNG DAUGHTERS' AFFECTION FOR ORIGAMI AND DREW OUT MR. OKAMATSU ABOUT HIS FAMILY A TOPIC HE IS SO SHY ABOUT THAT SOME OF HIS COLLEAGUES LEARNED HE HAD A DAUGHTER ONLY WHEN SHE WAS SEEN FROM THE OFFICE WINDOW BUT HE ENDEARED HIMSELF TO THE BARSHEFSKY FAMILY BY SENDING THEM A JAPANESE DOLL WEARING A KIMONO SINCE YOUR DAUGHTERS MUST HAVE MISSED YOU IN TOKYO HE TOLD HER THIS IS SOMETHING TO CHEER THEM UP IN EARLY DECEMBER THE U. S. LAUNCHED ITS OWN OFFENSIVE IN TALKS WITH MR. OKAMATSU CABINET SECRETARIES AND POLITICAL POWER BROKERS THE AMERICANS TRIED TO EXPLAIN THAT THEY WEREN'T SEEKING MARKET SET ASIDES AS WITH SEMICONDUCTORS RATHER THEY WANTED JAPAN TO OPEN ITS MARKET BROADLY IN A VERIFIABLE WAY BUT THE PRESS INTERPRETED THAT TO MEAN THAT THE U. S. WAS BACKING OFF ON ITS DEMANDS AND THE U. S. FOUND ITSELF ATTACKED AS BOTH PROTECTIONIST AND WEAK SHORTLY BEFORE CHRISTMAS THE U. S. INTENSIFIED ITS ATTACK EXPLICITLY CASTING MR. OKAMATSU AND HIS COLLEAGUES AS THE VILLAINS IN THE DRAMA THE GOAL WAS TO DRAW THEIR POLITICAL BOSSES INTO THE FIGHT TRADE REPRESENTATIVE MICKEY KANTOR WROTE A LETTER TO THE NIHON KEIZAI SHIMBUN A BUSINESS NEWSPAPER ACCUSING JAPAN'S BUREAUCRATS OF RESISTING TRADE LIBERALIZATION BECAUSE THEY FEAR A LOSS OF POWER MS. BARSHEFSKY AND MR. OKAMATSU REMAINED TRAPPED IN RITUALISTIC NEGOTIATIONS WHICH EXASPERATED THE HARD CHARGING LAWYER TWO WEEKS AGO IN WASHINGTON MR. OKAMATSU HANDED MS. BARSHEFSKY DOCUMENTS CONTENDING THE U. S. HAD SCORED BIG GAINS IN CERTAIN IMPORTS WHICH THE U. S. DEEMED INFLATED I TOLD HIM WE'RE NOT MAKING PROGRESS WE'RE GOING TO LEAVE SHE RECALLS HE THREW UP HIS HANDS AND SAID I CAN'T DO ANY MORE LATER MR. OKAMATSU SAID THAT IS HER NEGOTIATING TACTIC BUT IN THE END BOTH SIDES DECIDED TO RE EXAMINE THE NUMBERS RATHER THAN BREAK OFF THE TALKS NOW OUT OF FRUSTRATION BOTH SIDES HOPE TO GO OVER THE NEGOTIATORS' HEADS IN WHAT MIGHT BE CALLED A WIZARD OF OZ STRATEGY IF THEY COULD ONLY GET BEYOND THE DEADLOCKED NEGOTIATORS BOTH SIDES THINK THEY MAY FIND SOMEONE HIDDEN FROM VIEW A WIZARD OR A FIXER WILLING TO CUT A DEAL A JAPANESE DELEGATION RECENTLY ASKED ROBERT RUBIN DIRECTOR OF THE NATIONAL ECONOMIC COUNCIL TO COME TO JAPAN FIGURING THAT THE FORMER GOLDMAN SACHS AND COMPANY CO CHAIRMAN WOULD BE MORE SYMPATHETIC HE DECLINED AND MR. KANTOR THE BLUNT U. S. TRADE REPRESENTATIVE SHOWED UP THE U. S. SEARCH FOR A WIZARD IS GOING JUST AS POORLY LAST WEEK MESSRS KANTOR AND CUTTER MADE THE ROUNDS IN TOKYO OF THE TOP POLITICIANS IN THE GOVERNMENT COALITION AND EVEN THE OPPOSITION LOOKING FOR SOMEBODY TO PLEAD THEIR CASE BUT WITH THE CABINET LURCHING FROM ONE POLITICAL CRISIS TO ANOTHER IT'S NOT CLEAR WHO CAN HELP MEETING MR. KANTOR THURSDAY AFTERNOON MR. HOSOKAWA FELT HE WAS FINALLY READY TO FOCUS ON THE FRAMEWORK HAVING COMPLETED HIS ECONOMIC PACKAGE BUT BY THURSDAY NIGHT THE PACKAGE HAD UNRAVELED IN A DISPUTE OVER TAXES MR. HOSOKAWA WASN'T ABLE TO COME UP WITH A NEW PLAN UNTIL YESTERDAY BACK IN WASHINGTON STONEWALL BARSHEFSKY PREPARES FOR YET ANOTHER VISIT FROM MR. OKAMATSU WHO ARRIVED SUNDAY THIS TIME SHE SAYS SHE WILL TELL HIM ABOUT THE TIME HER T. V. SET CONKED OUT JUST BEFORE SHE WAS DUE TO LEAVE FOR TOKYO QUOTE COULD YOU BUY US ANOTHER ONE IN JAPAN QUOTE HER TEN YEAR OLD ASKED FIGURING THAT IS WHERE ALL T. V. SETS COME FROM TOO EXPENSIVE HER MOTHER REPLIED EXPLAINING HOW A CLOSED JAPANESE MARKET BOOSTS PRICES HIGHER THAN THEY ARE IN WASHINGTON MR. OKAMATSU IS READY WITH A RESPONSE JAPANESE ELECTRONICS COMPANIES LOOKING TO CUT THE TRADE IMBALANCE AND RAISE U. S. EMPLOYMENT ACTUALLY MAKE LOTS OF T. V.S IN AMERICA OVERALL MS. BARSHEFSKY'S STRATEGY IS TO HANG TOUGH BUT OFFER THE JAPANESE A FACE SAVING WAY OUT MR. OKAMATSU GENTLY SUGGESTS HE WILL MAKE SURE THINGS WORK OUT OUR BACKGROUNDS ARE DIFFERENT HE SAYS BUT FORTUNATELY I HAVE HAD AN EXPERIENCE TO LIVE IN THE U. S. SO I THINK I KNOW HOW THE AMERICAN PEOPLE THINK SAYS STONEWALL BARSHEFSKY THE JAPANESE WILL TAKE UNTIL THE LAST NANOSECOND BEFORE CUTTING A DEAL TODAY CONGRESS WILL RESUME DEBATE OVER THE LAPSED INDEPENDENT COUNSEL LAW AND THE ARGUMENTS NO DOUBT WILL BE COLORED BY PRESIDENT AND MRS. CLINTON'S CONTROVERSIAL FINANCIAL DEALINGS IN WHITEWATER DEVELOPMENT CORPORATION I AM AGAINST REAUTHORIZATION OF THE STATUTE IN ANY FORM BUT SINCE IT SOON MAY BE REAUTHORIZED CONGRESS MIGHT AS WELL ENSURE THAT THE STATUTE FULFILLS ITS ASSERTED PURPOSES AND APPLIES IN A FAIR AND CONSISTENT MANNER CONGRESS THUS OUGHT TO RESOLVE A QUESTION OF INCREASINGLY PRESSING IMPORTANCE SHOULD A PRESIDENT'S SPOUSE BE COVERED BY THE INDEPENDENT COUNSEL STATUTE IN LIGHT OF WHITEWATER AND HILLARY RODHAM CLINTON'S DEEP INVOLVEMENT IN THE POLITICS AND POLICY OF HER HUSBAND'S PRESIDENCY THE ANSWER TO THAT QUESTION IS CLEARLY YES EVERYONE NOW SEEMS TO AGREE THAT SPECIAL PROCEDURES ARE NECESSARY IN CASES INVOLVING POSSIBLE CLAIMS OF HIGH LEVEL EXECUTIVE BRANCH WRONGDOING WHITEWATER IS SUCH A CASE REPUBLICANS LED BY SENATE MINORITY LEADER BOB DOLE AND JOINED BY NUMEROUS SENATE DEMOCRATS PERSUADED THE WHITE HOUSE TO REQUEST THAT ATTORNEY GENERAL JANET RENO APPOINT AN OUTSIDE QUOTE SPECIAL COUNSEL QUOTE WHO WILL BE INSULATED BY JUSTICE DEPARTMENT REGULATIONS FROM POLITICAL PRESSURES TO INVESTIGATE THE WHITEWATER AFFAIR EVEN AS SHE ANNOUNCED THE APPOINTMENT OF ROBERT FISKE HOWEVER MS. RENO REITERATED HER POSITION THAT ONLY A TRULY INDEPENDENT COUNSEL APPOINTED BY THE COURTS PURSUANT TO THE STATUTE WOULD INSTILL PUBLIC CONFIDENCE IN THE WHITEWATER INVESTIGATION BUT THIS PREFERENCE POSES A PROBLEM THAT GOES BEYOND WHITEWATER THE INDEPENDENT COUNSEL STATUTE HAS NEVER EXPLICITLY COVERED THE PRESIDENT'S SPOUSE AND NEITHER THE HOUSE NOR THE SENATE PROPOSALS PENDING IN CONGRESS WOULD DO SO EITHER THE STATUTORY MANDATE FOR AN INDEPENDENT COUNSEL HAS ALWAYS APPLIED ONLY TO CERTAIN SPECIFICALLY IDENTIFIED HIGH RANKING EXECUTIVE BRANCH OFFICIALS INCLUDING THE PRESIDENT NEITHER THE FIRST LADY NOR ANY OTHER EXECUTIVE BRANCH SPOUSE HAS EVER BEEN INCLUDED WHITEWATER SHOWS WHY THIS MAKES NO SENSE AS VIRTUALLY EVERYONE MUST KNOW BY NOW THE WHITEWATER CONTROVERSY FAIRLY OR UNFAIRLY FOCUSES AS MUCH ON MRS. CLINTON AS ON THE PRESIDENT ACCORDING TO TIME MAGAZINE COMPARED WITH THE PRESIDENT THE FIRST LADY WAS A CENTRAL PLAYER BOTH WERE INVESTORS IN THE FAILED LAND DEAL MRS. CLINTON'S CONDUCT ALSO ALLEGEDLY INCLUDED HER SECURING OF A THIRTY THOUSAND DOLLAR LOAN TO PURCHASE A MODEL HOME FOR THE DEVELOPMENT PROPERTY AND THE SUBSEQUENT SALE OF THE HOME HER LEGAL REPRESENTATION OF MADISON GUARANTY S. AND L. THE INVOLVEMENT OF HER LAW PARTNERS IN VARIOUS OTHER WHITEWATER EVENTS AND HER NINETEEN EIGHTY EIGHT LETTER ASKING FOR POWER OF ATTORNEY FOR THE COMPANY THE POSITION OF FIRST LADY NO LONGER CAN BE CHARACTERIZED AS SIMPLY CEREMONIAL PARTICULARLY SINCE THE OFFICE'S POLICY MAKING FUNCTION HAS NOW BEEN MADE EXPLICIT IN ITS RECENT DECISION CONCERNING THE LEGAL STATUS OF MRS. CLINTON AND THE HEALTH CARE TASK FORCE OVER WHICH SHE PRESIDED THE FEDERAL APPEALS COURT IN WASHINGTON HAD LITTLE TROUBLE CONCLUDING THAT THE PRESIDENT'S SPOUSE ACTS AS THE FUNCTIONAL EQUIVALENT OF AN ASSISTANT TO THE PRESIDENT AND THAT THE FIRST LADY IS A FULL TIME OFFICER OR EMPLOYEE OF THE GOVERNMENT MRS. CLINTON HAS BEEN REPEATEDLY CHARACTERIZED AS THE PRESIDENT'S CLOSEST ADVISER SHE WAS CHARGED BY THE PRESIDENT WITH THE RESPONSIBILITY OF FORMULATING AND IMPLEMENTING THE MOST FAR REACHING POLICY INITIATIVE OF HIS ADMINISTRATION HEALTH CARE REFORM AND SHE RECENTLY TESTIFIED BEFORE FIVE CONGRESSIONAL COMMITTEES ON THE PRESIDENT'S PLAN THE FIRST LADY ALSO REPORTEDLY PLAYED A KEY ROLE IN CHOOSING THE PRESIDENT'S CABINET INCLUDING ATTORNEY GENERAL RENO DURING THE RECENT SENATE HEARINGS CONCERNING REAUTHORIZATION OF THE INDEPENDENT COUNSEL STATUTE MS. RENO TESTIFIED THE REASON I SUPPORT THE CONCEPT OF AN INDEPENDENT COUNSEL WITH STATUTORY INDEPENDENCE IS THAT THERE IS AN INHERENT CONFLICT WHENEVER SENIOR EXECUTIVE BRANCH OFFICIALS ARE TO BE INVESTIGATED BY THE DEPARTMENT OF JUSTICE AND ITS APPOINTED HEAD THE ATTORNEY GENERAL THE INDEPENDENT COUNSEL ACT WAS DESIGNED TO AVOID EVEN THE APPEARANCE OF IMPROPRIETY IN THE CONSIDERATION OF ALLEGATIONS OF MISCONDUCT BY HIGH LEVEL EXECUTIVE BRANCH OFFICIALS I BELIEVE THAT THE JUSTICE DEPARTMENT SPECIAL COUNSEL PROCESS IS FULLY ADEQUATE TO ADDRESS THESE CONCERNS BUT IF ONE AGREES WITH THE ATTORNEY GENERAL'S ASSERTIONS I DO NOT SEE ANY WAY TO DISPUTE THAT THE PRESIDENT'S SPOUSE SHOULD BE SUBJECTED TO MANDATORY COVERAGE UNDER ANY NEW INDEPENDENT COUNSEL STATUTE THE INHERENT CONFLICT AND APPEARANCE PROBLEMS IDENTIFIED BY MS. RENO WOULD EXIST JUST AS CLEARLY IF THE ATTORNEY GENERAL AND HER SUBORDINATES RETAINED RESPONSIBILITY FOR INVESTIGATING ALLEGATIONS OF MISCONDUCT AGAINST A FIRST LADY MOREOVER INVESTIGATION AND PROSECUTION OF A FIRST LADY WOULD IN MANY WAYS RAISE FAR MORE SENSITIVE ISSUES THAN CASES INVOLVING OTHER TOP PRESIDENTIAL AIDES AND ADVISERS IN FACT AN ATTORNEY GENERAL WOULD LIKELY RECOIL IN HORROR FROM THE IDEA OF TARGETING AND PURSUING THE BOSS'S SPOUSE IN CONNECTION WITH A CRIMINAL INQUIRY MEMBERS OF CONGRESS AND SOME MEMBERS OF THE PRESS CANNOT EVEN BRING THEMSELVES TO ASK MRS. CLINTON TOUGH POLICY QUESTIONS THIS MAKES IT ESPECIALLY DIFFICULT TO IMAGINE THE ATTORNEY GENERAL AND CAREER PROSECUTORS TENACIOUSLY INVESTIGATING OR BRINGING CHARGES AGAINST A FIRST LADY EXCEPT IN THE MOST EXTREME CIRCUMSTANCES SUCH FACTORS WOULD ALSO CREATE ENORMOUS POLITICAL AND PRACTICAL OBSTACLES FOR THE ATTORNEY GENERAL THAT WOULD RULE OUT THE DISCRETIONARY APPOINTMENT OF AN INDEPENDENT COUNSEL TO PROSECUTE A FIRST LADY ONLY MANDATORY COVERAGE WILL FULFILL THE PURPOSES OFFERED TO JUSTIFY THE INDEPENDENT COUNSEL LAW AS A MATTER OF PRINCIPLE ANY NEW INDEPENDENT COUNSEL LAW SHOULD APPLY TO PRESIDENTIAL SPOUSES AND CONGRESS OR IT SHOULD NOT BE PASSED AT ALL MRS. CLINTON'S ROLE AS POLICY AND POLITICAL ADVISER TO THE PRESIDENT IS NOT LIKELY TO BE AN ISOLATED INCIDENT IN THE HISTORY OF THE PRESIDENCY NOR CAN MANDATORY APPLICATION OF THE INDEPENDENT COUNSEL LAW TO PRESIDENTIAL SPOUSES BE CHALLENGED BY THE DEMOCRATS AS A PARTISAN ISSUE SENATOR DOLE HAS FULLY ENDORSED MRS. CLINTON'S POLICY ACTIVITIES AS ENTIRELY APPROPRIATE HE OFTEN REMARKS AMIABLY THAT HE PLANS TO FULFILL A SIMILAR ROLE WHEN HIS WIFE ELIZABETH IS ELECTED PRESIDENT WHAT BETTER REASON COULD THERE BE FOR THE DEMOCRATIC CONGRESS TO VOTE TO ENSURE THAT THE PRESIDENT'S SPOUSE IS COVERED BY THE INDEPENDENT COUNSEL LAW MR. BOUTROUS IS AN ATTORNEY IN WASHINGTON WHO HAS REPRESENTED PARTIES IN INDEPENDENT COUNSEL MATTERS NORTHWEST AIRLINES POSTED ITS SECOND CONSECUTIVE QUARTERLY PROFIT FOR THE FOURTH QUARTER BENEFITING FROM COST CUTTING AND MORE STABLE FARES THE NATION'S FOURTH LARGEST AIRLINE WHICH NARROWLY AVERTED A BANKRUPTCY LAW FILING LAST SUMMER SAID IT EARNED TEN POINT FIVE MILLION DOLLARS IN THE QUARTER IN THE THIRD QUARTER IT HAD POSTED ITS FIRST PROFIT IN TWO YEARS A HEALTHY ONE HUNDRED TWELVE POINT THREE MILLION DOLLARS NORTHWEST SAID ITS FOURTH QUARTER RESULTS WERE REDUCED BY AN EIGHTY FIVE MILLION DOLLAR ACCOUNTING CHARGE ASSOCIATED WITH ITS NEW WAGE CONTRACTS BUT BOOSTED BY A TWENTY NINE MILLION DOLLAR CREDIT FROM A YEAR END TICKET LIABILITY ACCOUNTING ADJUSTMENT OPERATING PROFIT WAS SEVENTY FOUR POINT EIGHT MILLION DOLLARS ON REVENUE OF TWO POINT ONE FIVE BILLION DOLLARS CLOSELY HELD NORTHWEST WHICH HOPES TO RAISE AS MUCH AS FOUR HUNDRED SIXTY MILLION DOLLARS FROM AN INITIAL PUBLIC OFFERING PLANNED FOR THE CURRENT QUARTER HAD A LOSS OF SIX HUNDRED NINETY FIVE POINT TWO MILLION DOLLARS IN THE YEAR EARLIER FOURTH QUARTER IN THAT PERIOD IT HAD AN OPERATING LOSS OF ONE HUNDRED EIGHTY FIVE POINT FOUR MILLION DOLLARS ON REVENUE OF ONE POINT NINE THREE BILLION DOLLARS THE ONLY MAJOR U. S. AIRLINE TO REPORT NET INCOME IN THE FOURTH QUARTER NORTHWEST SAID ITS EARNINGS REFLECTED COST CUTTING AN IMPROVED INDUSTRY PRICING CLIMATE AND A STRONG INCREASE IN YIELD A MEASURE OF REVENUE RECEIVED FOR EACH SEAT COSTS FELL TWO PERCENT IN THE FINAL QUARTER YIELD WAS UP ELEVEN PERCENT AND LOAD FACTOR THE PERCENTAGE OF SEATS SOLD ROSE MORE THAN THREE PERCENT NORTHWEST SAID TRAFFIC IN THE TRADITIONALLY SLOW FOURTH QUARTER WAS FLAT BUT BECAUSE NORTHWEST CUT ITS CAPACITY NEARLY FIVE PERCENT IT GOT MORE USAGE FROM ITS PLANES AND THE COMPANY SAID ITS REVENUE PER AVAILABLE SEAT MILE ANOTHER PERFORMANCE MEASURE JUMPED SIXTEEN POINT SEVEN PERCENT IN THE PERIOD QUOTE SIX MONTHS AGO I WOULD HAVE SAID THIS WAS VERY UNLIKELY QUOTE SAID ONE DEBT ANALYST WHO FOLLOWS NORTHWEST WHILE NORTHWEST DID INITIATE SOME PRICE PROMOTIONS EARLY IN THE FOURTH QUARTER INDUSTRY PRICES GENERALLY FOR FULL FARE AND FOURTEEN DAY ADVANCE PURCHASE TICKETS ARE TWENTY PERCENT HIGHER THAN A YEAR AGO AND AREN'T BEING DISCOUNTED THESE FARES ACCOUNT FOR ABOUT FORTY PERCENT OF NORTHWEST'S U. S. BUSINESS WHICH ITSELF CONTRIBUTES NEARLY TWO THIRDS OF TOTAL REVENUE THE COMPANY'S NEW THREE YEAR LABOR CONTRACTS WHICH CALL FOR WAGE AND BENEFIT CUTS ARE SAVING ABOUT TWENTY MILLION DOLLARS A MONTH THE EIGHT HUNDRED EIGHTY SIX MILLION DOLLARS IN CONCESSIONS WHICH UNIONS AGREED TO IN EXCHANGE FOR AS MUCH AS A THIRTY SEVEN PERCENT STAKE IN NORTHWEST HELPED THE CARRIER AVOID A CHAPTER ELEVEN FILING FOR PROTECTION FROM CREDITORS ALSO CONTRIBUTING TO THE TURNAROUND ARE A TWO YEAR COST CUTTING DRIVE THAT ELIMINATED FOUR THOUSAND THREE HUNDRED POSITIONS SHRINKING OR CLOSING OF UNPROFITABLE U. S. HUBS AND SLOW IMPROVEMENT IN THE IMPORTANT JAPANESE MARKET HAVERTY FURNITURE COMPANIES FRANK S. MCGAUGHEY JUNIOR SEVENTY YEARS OLD IS RETIRING AS OF MARCH THIRTY FIRST AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS FURNITURE RETAILER HE WILL BE SUCCEEDED BY JOHN E. SLATER JUNIOR FIFTY NINE WHO CURRENTLY IS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER CERPLEX GROUP INCORPORATED AN INITIAL OFFERING OF THREE POINT TWO MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR FOUR HUNDRED EIGHTY THOUSAND ADDITIONAL SHARES VIA DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION AND MONTGOMERY SECURITIES ELECTROGLAS INCORPORATED AN OFFERING OF TWO MILLION COMMON SHARES VIA LEHMAN BROTHERS BEAR STEARNS AND COMPANY AND NEEDHAM AND COMPANY METRICOM INCORPORATED AN OFFERING OF TWO POINT TWO MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL THREE HUNDRED THIRTY THOUSAND COMMON SHARES VIA DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION AND COWEN AND COMPANY THIS MAKER OF INTIMATE APPAREL SAID ITS FOUNDER AND PRESIDENT CECELIA POST RESIGNED AFTER EIGHT YEARS WITH THE COMPANY QUOTE TO PURSUE OTHER INTERESTS IN THE FASHION INDUSTRY QUOTE MS. POST FORTY TWO YEARS OLD DIDN'T RETURN CALLS SEEKING COMMENT STEPHEN DAVIS FIFTY FOUR WHO RECENTLY JOINED THE COMPANY AS SENIOR VICE PRESIDENT LEFT THE COMPANY BODY DRAMA HAS SINCE ELIMINATED HIS POSITION THOMAS P. BAUMANN CHIEF FINANCIAL OFFICER AND EUGENE B. PRICE THE SECOND A DIRECTOR OF BODY DRAMA'S MAJORITY OWNER BEEBA'S CREATIONS INCORPORATED OF SAN DIEGO ASSUMED THE BOARD SEATS VACATED BY MS. POST AND MR. DAVIS THE MOMENT PRESIDENT CLINTON'S AIDES SAT DOWN WITH HONCHOS FROM THE AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES CIVILITY ENDED IN THE DEBATE OVER WELFARE REFORM THE GIANT PUBLIC EMPLOYEES UNION READ THE RIOT ACT TO THE PRESIDENT'S WELFARE REFORM WORKING GROUP AT THE MID DECEMBER MEETING A CLINTON AIDE SAYS THE LABOR OFFICIALS COMPLAINED THAT THEY'D BEEN FROZEN OUT AND DISREGARDED BY THE WHITE HOUSE AND THAT LABOR'S DEMANDS HAD TO BE CONSIDERED IF WELFARE REFORM WAS TO BECOME A REALITY QUOTE OUR PEOPLE LEFT THE MEETING IN A DAZE QUOTE THE CLINTON AIDE SAYS THAT WAS JUST THE START AS MR. CLINTON MAPS OUT PRECISELY WHAT HE WILL PROPOSE TO DELIVER ON HIS PROMISE OF A WELFARE REFORM INITIATIVE THIS SPRING HE IS ALREADY ENCOUNTERING A VIGOROUS LOBBYING EFFORT BY ORGANIZED LABOR WHICH FEARS THAT LOW COST WELFARE RECIPIENTS PUT TO WORK UNDER THE JOBS COMPONENT OF ANY REFORM PACKAGE COULD DISPLACE UNIONIZED WORKERS THE UNIONS' CONCERNS REPRESENT A REAL DILEMMA FOR MR. CLINTON AFTER ALL HE JUST FINISHED FIGHTING WITH MUCH OF THE LABOR ESTABLISHMENT OVER THE NORTH AMERICAN FREE TRADE AGREEMENT AND BADLY NEEDS UNION SUPPORT IN THE IMPENDING BATTLE OVER HEALTH CARE REFORM YET THE PRESIDENT IS ALSO UNDER PRESSURE FROM SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN AND FROM HIS OWN NEW DEMOCRAT POLITICAL ADVISERS TO PUSH A BOLD PROPOSAL TO END WELFARE AS WE KNOW IT AND THE CORE OF MR. CLINTON'S EXPECTED PROPOSAL A TWO YEAR LIMIT ON WELFARE BENEFITS REQUIRES SOME SORT OF PROGRAM TO MOVE RECIPIENTS OFF OF WELFARE AND INTO JOBS WHILE ALLOWING THOSE LEFT BEHIND TO COLLECT CHECKS IN EXCHANGE FOR WORK WHITE HOUSE OFFICIALS INSIST THAT A COLLISION WITH LABOR OVER WELFARE REFORM IS FAR FROM INEVITABLE WE'LL WORK IT OUT SAYS BRUCE REED A TOP DOMESTIC POLICY ADVISER TO THE PRESIDENT WE HAVE PLENTY OF SHARED GOALS MR. CLINTON HE INSISTS NEVER INTENDED TO RECOMMEND THE TYPE OF GIANT FEDERAL JOBS PROGRAM THAT LABOR MOST FEARS IT WON'T BE NECESSARY WE WON'T DO IT WE CAN'T AFFORD IT HE SAYS HIS TASK OF DEFLATING EXPECTATIONS ABOUT WELFARE REFORM HAS BEEN MADE MORE DIFFICULT BY A RECENT NEW YORK TIMES REPORT THAT AS MANY AS TWO POINT THREE MILLION PEOPLE COULD BE SUBJECT TO WORK REQUIREMENTS ONCE THEY'VE REACHED THE TWO YEAR LIMIT ON BENEFITS THAT REPORT SET OFF ALARM BELLS NOT ONLY IN THE LABOR MOVEMENT BUT IN CONGRESS WHERE IT STIRRED FEARS OF A BUDGET BUSTING PUBLIC JOBS PROPOSAL MR. REED THOUGH INSISTS THAT THE LATEST DRAFTS OF THE PRESIDENT'S REFORM PLAN ENVISION ONLY ABOUT ONE THIRD THAT MANY COMMUNITY SERVICE TYPE JOBS ONCE THE PROGRAM BECOMES FULLY PHASED IN FIVE OR SIX YEARS FROM NOW THAT MODEST ESTIMATE HE SAYS STEMS FROM ONE HUGE EXEMPTION EXPECTED TO BE INCLUDED IN THE PRESIDENT'S PROPOSAL NEARLY TWO MILLION OF THE PROJECTED FIVE POINT SIX MILLION WELFARE CASES IN NINETEEN NINETY NINE WOULDN'T FACE ANY WORK REQUIREMENTS SPECIFICALLY THE EXEMPTED RECIPIENTS WOULD BE THOSE WHO ARE DISABLED HAVE SMALL CHILDREN OR SPECIAL NEEDS OR CASES IN WHICH ABANDONED OR IMMIGRANT CHILDREN ARE BEING RAISED BY SOMEONE OTHER THAN THEIR PARENTS ON THE POSITIVE AND MAYBE OVERLY OPTIMISTIC SIDE THE ADMINISTRATION ALSO EXPECTS NEARLY TWO MILLION RECIPIENTS TO LEAVE THE WELFARE ROLLS IF UNIVERSAL HEALTHCARE AND CHILD CARE COVERAGE ARE ADDED TO THE ALREADY ENACTED EARNED INCOME TAX CREDIT THAT LEAVES THE PROBLEM GROUP OF ABOUT ONE POINT FIVE MILLION TO ONE POINT EIGHT MILLION CASES THE ADMINISTRATION'S PLAN WILL CALL FOR THESE PEOPLE TO BE PUSHED INTO AN INTENSIVE TWO YEAR JOB TRAINING AND PLACEMENT EFFORT WHILE EMPLOYERS ARE OFFERED INCENTIVES TO HIRE THEM QUOTE THERE WILL BE PRESSURE FROM ACROSS THE SPECTRUM TO MOVE THESE PEOPLE INTO MEANINGFUL PRIVATE SECTOR JOBS QUOTE SAYS DAVID ELLWOOD A LEADING ANTIPOVERTY RESEARCHER WHO IS CO CHAIRMAN OF THE PRESIDENT'S WELFARE WORKING GROUP WITH MR. REED EVERYONE INCLUDING LABOR SHARES THAT GOAL BUT THE ADMINISTRATION'S CURRENT PROJECTION THAT NEARLY HALF THOSE PEOPLE WILL ACTUALLY GET JOBS IS A NOTION THAT MANY WELFARE EXPERTS CONSIDER FANCIFUL IT'S PIE IN THE SKY SAYS DOUGLAS BESHAROV A RESIDENT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE THERE IS NO VERIFIABLE EVIDENCE THAT ANY JOBS PROGRAM HAS EVER SUCCEEDED IN GETTING A SIGNIFICANT NUMBER OF WELFARE RECIPIENTS INTO WORK THE ADMINISTRATION IS DIVING INTO THIS THING WITHOUT ANY CLEAR IDEA WHERE IT WILL END UP OR HOW MUCH IT WILL COST COST IS INDEED ONE OF THE MAJOR IMPONDERABLES THE NINETEEN SEVENTIES ERA COMPREHENSIVE EMPLOYMENT AND TRAINING ACT JOBS PROGRAM COST THE FEDERAL GOVERNMENT NEARLY TEN BILLION DOLLARS A YEAR AT ITS PEAK MANY OUTSIDE EXPERTS SUGGEST THAT A MEANINGFUL WELFARE REFORM PLAN THESE DAYS COULD COST TWENTY FIVE BILLION DOLLARS TO THIRTY BILLION DOLLARS A YEAR VASTLY MORE THAN THE ADMINISTRATION'S CURRENT ESTIMATE OF FOUR BILLION DOLLARS TO SEVEN BILLION DOLLARS TO DO WELFARE REFORM RIGHT YOU HAVE TO HELP WELFARE RECIPIENTS WHILE MAKING SURE YOU DON'T HURT THE WORKING POOR MANY OF WHOM ARE IN PUBLIC SECTOR UNIONS SAYS SAR LEVITAN DIRECTOR OF THE CENTER FOR SOCIAL POLICY STUDIES AT GEORGE WASHINGTON UNIVERSITY QUOTE OF COURSE THAT COSTS THE KIND OF MONEY NO ONE IS WILLING TO COMMIT QUOTE WHAT MOST CONCERNS UNIONS THOUGH IS THAT A FAILED TRAINING AND PLACEMENT PROGRAM WILL LEAVE MORE THAN A MILLION WELFARE RECIPIENTS AT THE TWO YEAR LIMIT AN ABLE BODIED AVALANCHE MOVING INTO A LOOSELY DEFINED ARRAY OF MINIMUM WAGE COMMUNITY SERVICE WORK OR JOBS WITH NONPROFIT ORGANIZATIONS SUCH AS HOSPITALS STATES AND CITIES STRUGGLING UNDER TIGHT BUDGETS MIGHT TURN TO THIS WORK FORCE INSTEAD OF TO WORKERS THEY'D ORDINARILY HIRE AT UNION WAGES LABOR LEADERS SAY OR WORSE THEY SAY GOVERNMENT OFFICIALS MAY DISCONTINUE PUBLIC PROGRAMS IN EXPECTATION OF LATER FILLING THEM WITH LOW COST FORMER WELFARE RECIPIENTS A. F. S. C. M. E. LOBBYISTS IN DAILY CALLS TO THE WHITE HOUSE ARE PUSHING LABOR'S TIME HONORED SOLUTION MAKE SURE THE COMMUNITY SERVICE JOBS ARE THE TYPES OF THINGS NO ONE WOULD EVER HIRE SOMEONE TO DO SAYS ARNOLD PACKER WHO RAN CETA PROGRAMS AS AN ASSISTANT LABOR SECRETARY IN THE NINETEEN SEVENTIES BUT ADMINISTRATION OFFICIALS ARGUE THAT SUCH A SOLUTION WOULD DEFEAT THE PURPOSE OF COMMUNITY WORK WHICH IS TO BUILD SKILLS THAT WILL EVENTUALLY MAKE THE RECIPIENT ATTRACTIVE TO SOME PRIVATE SECTOR EMPLOYER INDEED OBSERVES MR. PACKER IN CETA WE FOUND THAT EXPERIENCE RAKING LEAVES OR PICKING UP GARBAGE DOESN'T OFFER MUCH OF A LEG UP IN THE JOB MARKET A. F. S. C. M. E. OFFICIALS BELIEVE THEY ARE WELL POSITIONED TO INFLUENCE THE WHITE HOUSE IN THEIR DIRECTION GERALD MCENTEE THE UNION'S PRESIDENT IS ARGUABLY MR. CLINTON'S STRONGEST LOYALIST IN LABOR ALTHOUGH THE A. F. S. C. M. E. OPPOSED NAFTA IT DIDN'T DO SO AS VIGOROUSLY AS OTHER UNIONS BEYOND THAT THE UNION'S FORMER LOBBYIST JERRY KLEPNER IS NOW ASSISTANT SECRETARY OF HEALTH AND HUMAN SERVICES FOR LEGISLATION AND WILL HAVE A KEY ROLE IN NEGOTIATING WELFARE REFORM BUT THE AMERICAN ENTERPRISE INSTITUTE'S MR. BESHAROV THINKS THOSE TIES WON'T BE ENOUGH LISTEN BECAUSE LABOR WILL BE SO OPPOSED TO WELFARE REFORM THE ADMINISTRATION WILL SIMPLY HAVE TO MOVE TO THE RIGHT AND RELY ON REPUBLICAN SUPPORT TO GET IT PASSED HE PREDICTS IN THE END IT'LL LOOK LIKE THE NAFTA COALITION ALL OVER AGAIN HAS ATTORNEY GENERAL DAN MORALES TAKEN THE TEETH OUT OF CONSUMER PROTECTION UNDER FORMER ATTORNEYS GENERAL CONSUMER PROTECTION WAS ELEVATED TO A TOP PRIORITY BY PURSUING TRADE SCHOOLS PYRAMID SCHEMES AND MISLEADING ADVERTISING THE STATE WON A NATIONAL REPUTATION FOR TOUGH ENFORCEMENT AND THE ENMITY OF BUSINESS WHICH COMPLAINED ABOUT ACTIVISM RUN AMOK NOW CONSUMER GROUPS FEAR THE PENDULUM MAY BE SWINGING THE OTHER WAY THEY SAY THE ATTORNEY GENERAL'S CONSUMER PROTECTION DIVISION HAS BECOME NOTICEABLY LESS AGGRESSIVE IN THE PAST FEW YEARS WHAT'S MORE OVER THE PAST TWO MONTHS A HALF DOZEN OF THE AGENCY'S TOP CONSUMER LAWYERS HAVE BEEN FIRED OR LEFT THE AGENCY LEAVING THE FATE OF SCORES OF CASES UP IN THE AIR SOME OF THE POSITIONS WON'T BE FILLED AND THE CONSUMER PROTECTION OPERATION RECENTLY WAS MERGED INTO THE ATTORNEY GENERAL'S ANTITRUST DIVISION AND ITS CHIEF GIVEN NEW TASKS QUOTE ANYTIME YOU MAKE THAT KIND OF MASS CHANGE IT CAUSES PEOPLE TO WORRY ABOUT YOUR COMMITMENT QUOTE SAYS TOM SMITH STATE DIRECTOR OF PUBLIC CITIZEN THE CONSUMER GROUP BASED IN WASHINGTON D. C. NONSENSE SAYS A SPOKESMAN FOR MR. MORALES WHO BECAME ATTORNEY GENERAL IN NINETEEN NINETY ONE THE FIRINGS HE SAYS DON'T SIGNAL ANY POLICY CHANGE BUT ARE MERELY UNRELATED PERSONNEL DECISIONS WE'RE NOT GOING TO GET INTO EXPLAINING OUR MANAGEMENT DECISIONS EXCEPT THAT THEY ARE GOOD DECISIONS SAYS THE SPOKESMAN RON DUSEK FOR CONSUMER GROUPS AS WELL AS FOR THE FIRED ATTORNEYS THE TEST OF MR. MORALES'S DEDICATION WILL COME IN A HANDFUL OF ISSUES INCLUDING CREDIT INSURANCE UTILITY REGULATION AND CHARITY CARE WE'RE GOING TO BE HOLDING DAN TO HIS PROMISE THAT THIS ISN'T A BACKING AWAY FROM HIS PROTECTION OF CONSUMERS MR. SMITH SAYS THE AGENCY ALSO AGREES THAT THE CHANGES SHOULD BE JUDGED BY THE RESULTS SAYS MR. DUSEK IT'S JUST ONE OF THOSE WAIT AND WATCH SITUATIONS WITH THAT IN MIND HERE ARE A HANDFUL OF CONSUMER ISSUES THAT BEAR WATCHING DURING THE NINETEEN EIGHTIES TEXAS PLAYED A LEADING ROLE IN MULTISTATE INVESTIGATIONS INTO DECEPTIVE OR MISLEADING ADVERTISING BY PROMINENT NATIONAL COMPANIES THE OFFICE TOOK ON AIRLINES OVER THEIR FARE ADVERTISING AND CHALLENGED QUAKER OATS COMPANY AND KELLOGG COMPANY OVER CLAIMS ABOUT THE HEALTH PROPERTIES OF THEIR CEREALS ITS BEST KNOWN CASE INVOLVED AN AD FROM VOLVO CARS OF NORTH AMERICA WHICH SHOWED A VOLVO SURVIVING A MONSTER TRUCK'S EFFORTS TO CRUSH IT AN INVESTIGATION BY WILLIAM GOODMAN ONE OF THE FIRED ASSISTANT ATTORNEYS GENERAL FOUND THAT THE CAR'S FRAME HAD BEEN SUPPORTED BY STEEL BEAMS MANY OF THE ADVERTISING CASES WERE LED BY STEPHEN GARDNER AN OUTSPOKEN ASSISTANT ATTORNEY GENERAL WHO WAS FIRED BY MR. MORALES IN DECEMBER NINETEEN NINETY ONE MR. SMITH OF PUBLIC CITIZEN AND MR. GARDNER SAY THAT DECEPTIVE ADVERTISING HAS BEEN A LOW PRIORITY FOR THE ATTORNEY GENERAL'S OFFICE SINCE MR. GARDNER LEFT MARKETERS HAVE HAD A GET OUT OF JAIL FREE CARD FOR YEARS SAYS MR. GARDNER NOW AN ATTORNEY IN DALLAS SPECIALIZING IN CONSUMER FRAUD ISSUES MR. DUSEK SAYS THAT OUTRAGEOUS ADS LIKE THE VOLVO SPOT WILL CONTINUE TO PROVOKE A RESPONSE BUT HE ADDS THOSE ARE ONE IN A MILLION CASES AND GOING AFTER CLAIMS BY NATIONAL ADVERTISERS IS LESS IMPORTANT THAN TARGETING OTHER KINDS OF CONSUMER FRAUD SUCH AS IN THE NURSING HOME INDUSTRY HE SAYS AN EARLIER PROBE INTO CRUISE LINE ADVERTISING FOR EXAMPLE MIGHT NOT HAPPEN TODAY QUOTE PEOPLE WHO ARE ABLE TO AFFORD CRUISE TRIPS PROBABLY NEED OUR HELP LESS THAN CHILDREN THE POOR AND THE ELDERLY QUOTE MR. DUSEK SAYS BUT MR. SMITH SAYS THAT VIEW IS TOO NARROW CRACKING DOWN ON DECEPTIVE ADVERTISING HE SAYS HAS A BROAD AND POWERFUL IMPACT IT'S WHERE LIMITS ARE PUT ON THE BEHAVIOR OF COMPANIES HE SAYS AGGRESSIVE INVESTIGATION INTO SOME IMPORTANT INSURANCE CONSUMER ISSUES HAS STALLED SAYS ED SALAZAR WHO WAS DISMISSED AS AN ASSISTANT ATTORNEY GENERAL IN DECEMBER MR. SALAZAR SAYS HE WAS FIRED BECAUSE HE WOULDN'T GO ALONG WITH THE ATTORNEY GENERAL'S DECISION IN NOVEMBER TO DROP A LAWSUIT AGAINST TEXAS FARM BUREAU UNDERWRITERS COMPANY THE LAWSUIT FILED IN OCTOBER IN TRAVIS COUNTY DISTRICT COURT ACCUSED THE PROPERTY AND CASUALTY INSURER OF OVERCHARGING FOR INSURANCE ON PLEASURE BOATS THE INSURER HAS DENIED THE CHARGES THE SAME LAWSUIT MADE NEARLY IDENTICAL ACCUSATIONS AGAINST STATE FARM FIRE AND CASUALTY COMPANY AND ALLSTATE INSURANCE COMPANY MR. SALAZAR SAYS HE IS WATCHING CLOSELY TO SEE WHAT HAPPENS TO THOSE CHARGES AMY JOHNSON THE STATE PUBLIC INSURANCE COUNSEL WHOSE JOB IS TO REPRESENT THE INTERESTS OF CONSUMERS IN INSURANCE MATTERS IS ALSO DISTRESSED BY THE ATTORNEY GENERAL'S DECISION LATE LAST YEAR TO DROP A LAWSUIT AGAINST TWO FURNITURE RETAILERS LACK'S FURNITURE CENTER INCORPORATED OF VICTORIA AND J. EDELSTEIN FURNITURE COMPANY OF MCALLEN THE LAWSUIT FILED IN TRAVIS COUNTY DISTRICT COURT CHARGED THE RETAILERS WITH DECEPTIVE TRADE PRACTICES RELATED TO CREDIT INSURANCE POLICIES WHICH PAY OFF INSTALLMENT LOANS IF THE CUSTOMER DIES OR IS DISABLED A SPOKESWOMAN FOR EDELSTEIN DECLINES COMMENT ON THE LAWSUIT THE PRESIDENT OF LACK'S DENIES THE CHARGES IT'S DEFINITELY SIGNIFICANT THAT THE CASES WERE DROPPED MS. JOHNSON SAYS IT'S PRETTY DISTURBING YOU HAVE TO BE WILLING TO FILE CASES PURSUE CASES COMMIT RESOURCES AND WIN THEM MR. SALAZAR WHO WAS INVOLVED IN THE CREDIT INSURANCE CASES BELIEVES THEY WERE DROPPED BECAUSE THE COMPANIES PUT PRESSURE ON MR. MORALES HE SUSPECTS THAT SIMILAR PRESSURE CAUSED THE ATTORNEY GENERAL TO END A CREDIT INSURANCE INVESTIGATION OF AUTO DEALERSHIPS LAST SUMMER ESSENTIALLY THE WHOLE IDEA OF CREDIT INSURANCE HAS BEEN DROPPED HE SAYS MR. DUSEK SAYS THE ATTORNEY GENERAL DECIDED TO ABANDON THE LAWSUITS AGAINST THE FURNITURE RETAILERS BECAUSE OF FLAWS IN THE CASE AND HE INSISTS THE AGENCY HASN'T ABANDONED CREDIT INSURANCE CASES INSTEAD THE AGENCY HAS DECIDED THAT IT'S MORE COST EFFECTIVE TO TAKE ON THE SMALL NUMBER OF INSURERS WHO MAKE THE POLICIES AVAILABLE RATHER THAN THE THOUSANDS OF RETAILERS WHO SELL THEM EVEN THOUGH BOTH CAN VIOLATE THE LAW THE AGENCY HAS LAWSUITS PENDING AGAINST TEN INSURERS AND IS INVESTIGATING ANOTHER TEN HE SAYS FOR THE PAST DECADE THE ATTORNEY GENERAL'S OFFICE HAS BEEN ONE OF THE MOST ACTIVE AND AGGRESSIVE PARTIES IN DISPUTES INVOLVING TELEPHONE AND ELECTRIC UTILITIES ASSISTANT ATTORNEY GENERAL SCOTT MCCOLLOUGH WAS A PARTICULARLY FORCEFUL ADVOCATE FOR HOLDING DOWN UTILITY PRICES BUT MR. MCCOLLOUGH WAS FIRED LAST WEEK AT A TIME WHEN HIS SECTION HAD MORE THAN NINETY CASES PENDING BEFORE THE PUBLIC UTILITY COMMISSION OR IN VARIOUS STAGES OF APPEAL MOST INVOLVED ARCANE BUT POTENTIALLY CRUCIAL AREAS OF TELEPHONE REGULATION CONNECTIONS INTO LOCAL PHONE NETWORKS FOR INSTANCE OR THE ALLOCATION OF COSTS FOR TELEPHONE SERVICES QUOTE WE'RE COMPLETELY RECONFIGURING THE TELECOMMUNICATIONS SYSTEM QUOTE SAYS MR. MCCOLLOUGH WHO SAYS HE DOESN'T KNOW WHY HE WAS FIRED IN ONE CASE TO BE DECIDED BY AN ADMINISTRATIVE LAW JUDGE MR. MCCOLLOUGH IS OPPOSING A PROPOSAL BY SOUTHWESTERN BELL COMPANY TO TURN OVER MAINTENANCE OF MORE OF THE PHONE LINES TO THE CONSUMER MR. MCCOLLOUGH ARGUES THAT WOULD SHIFT THE MAINTENANCE COST WITHOUT ANY REDUCTION IN THE PRICE OF A PHONE LINE THE ATTORNEY GENERAL'S OFFICE AND SOUTHWESTERN BELL ARE DISCUSSING A SETTLEMENT MR. MCCOLLOUGH SAYS BUT HE IS CONCERNED THAT HIS REPLACEMENT LACKS THE DETAILED KNOWLEDGE OF THE CASE TO PROTECT THE INTERESTS OF THE STATE CONSUMER GROUPS ALSO WORRY THAT WITHOUT MR. MCCOLLOUGH THE ATTORNEY GENERAL'S OFFICE WON'T CONTINUE TO PLAY AN ACTIVE ROLE IN SHAPING TELECOMMUNICATIONS POLICY FOR THE STATE HE IS APPLAUDED FOR DELIVERING A CRITICAL INDEPENDENT ANALYSIS OF THE TELEPHONE INDUSTRY'S PROPOSALS FOR LESS REGULATION DURING THE LAST LEGISLATIVE SESSION IT PAYS TO HAVE SOMEBODY WHO HAS A PRETTY HEALTHY SKEPTICISM ABOUT THE CLAIMS OF THESE COMPANIES AND TO LOOK REALLY HARD AT ALL THE HYPE SAYS BILL MAGNESS EXECUTIVE DIRECTOR OF THE COMMUNICATIONS COALITION OF TEXAS THERE'S A WHOLE LOT OF RATEPAYER AND TAXPAYER MONEY AT STAKE THE PERSONNEL SHAKE UP IN THE ATTORNEY GENERAL'S OFFICE GUTTED THE CHARITABLE TRUST SECTION ANN KITCHEN THE ASSISTANT SECTION CHIEF WAS FIRED AND SECTION CHIEF ROSE ANN REESER RESIGNED IN JANUARY TO WORK FOR THE TEXAS DEPARTMENT OF INSURANCE WHEN SHE WAS FIRED THREE WEEKS AGO MS. KITCHEN WAS WORKING TO IMPLEMENT A NEW STATE LAW WHICH SHE HELPED DRAFTTHAT ESTABLISHED THE LEVEL OF CHARITY CARE THAT NONPROFIT HOSPITALS MUST PROVIDE HER ALLIES IN FIGHTING FOR THE LEGISLATION WORRY THAT HER DISMISSAL MEANS THE AGENCY WON'T BE FORCEFUL IN MONITORING COMPLIANCE THE CHARITABLE TRUST DIVISION PLAYED A VERY IMPORTANT ROLE IN EXPOSING THE PROBLEMS IN THIS AREA SAYS JOHN HILDRETH SOUTHWEST DIVISION DIRECTOR FOR CONSUMERS UNION THE ADVOCACY GROUP I WOULD HOPE THAT THE CHANGES DON'T MEAN THAT THE DEPARTMENT IS GOING TO BE ANY LESS VIGOROUS IN ITS ENFORCEMENT MS. KITCHEN WHO SAYS SHE WAS FIRED AFTER BEING TOLD THAT MR. MORALES WAS CHANGING THE FOCUS OF THE AGENCY IS PARTICULARLY CONCERNED THAT HER FORMER EMPLOYER MIGHT NOT SEEK TO PLUG A BIG HOLE IN THE LAW A NARROW PROVISION ADDED TO IT BY A WEST TEXAS LAWMAKER THAT EXEMPTS HIGH PLAINS BAPTIST HOSPITAL IN AMARILLO SHE BELIEVES IT IS POSSIBLE TO CHALLENGE THE EXEMPTION QUOTE IT'S DEFINITELY A VIOLATION OF THE SPIRIT OF THE LAW QUOTE MS. KITCHEN SAYS MR. DUSEK SAYS THAT IT ISN'T THE ATTORNEY GENERAL'S JOB TO FIX LOOPHOLES IN THE LAW IF THERE IS AN EXEMPTION THAT'S A LEGISLATIVE DECISION HE SAYS AND IT WOULD BE UP TO THE LEGISLATURE TO CHANGE IT ADVOCATES FOR THE ELDERLY ARE W. ATCHING TO SEE WHETHER MR. MORALES BACKS AWAY FROM WHAT HAS BEEN AN ENERGETIC INVESTIGATION OF ABUSES IN THE POLITICALLY POWERFUL NURSING HOME INDUSTRY STATE LAW GIVES THE AGENCY A POTENT WEAPON IN BATTLING NURSING HOME ABUSES ITS ATTORNEYS CAN VISIT FACILITIES TO INVESTIGATE COMPLAINTS WITHOUT NOTICE AND VIOLATORS CAN BE QUICKLY PLACED UNDER THE CONTROL OF A TRUSTEE SINCE NINETEEN NINETY ONE THE ATTORNEY GENERAL HAS TAKEN OVER OR CLOSED EIGHT NURSING HOMES AND SUED THIRTY OTHERS NO ONE FROM THE ELDER CARE SECTION HAS BEEN FIRED BUT THERE IS ONE CLOUD THAT CONCERNS ADVOCATES THE SECTION CHIEF MARK CHOUTEAU WHILE REMAINING IN THE DIVISION HAS BEEN REPLACED BY A PRIVATE FORT WORTH ATTORNEY LATE NINETEEN SEVENTIES THE ATTORNEY GENERAL'S OFFICE PURSUES TRADE SCHOOL ABUSES BOILER ROOM OPERATIONS SELLING FRAUDULENT OIL AND GAS PARTNERSHIPS AND ABUSES IN THE NURSING HOME INDUSTRY DECEMBER NINETEEN EIGHTY SEVEN CHRYSLER CORPORATION AGREES TO PAY ONE POINT SEVEN MILLION DOLLARS TO MORE THAN TWO THOUSAND TEXAS CUSTOMERS AFTER A MULTISTATE INVESTIGATION LED BY TEXAS DISCOVERED THE COMPANY HAD DISCONNECTED ODOMETERS ON CARS DRIVEN BY COMPANY EXECUTIVES AND THEN RESOLD THE CARS AS NEW OCTOBER NINETEEN EIGHTY EIGHT THE ATTORNEY GENERAL SUES QUAKER OATS COMPANY OVER THE CEREAL MAKER'S CLAIMS THAT ITS OATMEAL COULD LOWER CHOLESTEROL QUAKER HALTS THE CLAIMS WITHOUT ADMITTING ANY WRONGDOING NOVEMBER NINETEEN NINETY VOLVO CARS OF NORTH AMERICA AGREES TO PULL A TELEVISION AD SHOWING A VOLVO SURVIVING A MONSTER TRUCK'S ATTEMPT TO CRUSH IT AFTER AN ATTORNEY GENERAL'S INVESTIGATION REVEALS THAT THE CAR WAS REINFORCED WITH STEEL BRACES THE COMPANY AGREES TO PAY THE STATE THREE HUNDRED SIXTEEN THOUSAND DOLLARS FOR INVESTIGATIVE COSTS NOVEMBER NINETEEN NINETY ATTORNEY GENERAL MATTOX SUES HOUSTON'S METHODIST HOSPITAL ALLEGING THE HOSPITAL DOESN'T DO ENOUGH TO PROVIDE CHARITY CARE TO THE POOR IN JUNE NINETEEN NINETY THREE A LAW SETTING NEW LEVELS OF REQUIRED CHARITY CARE IS SIGNED AND ATTORNEY GENERAL DAN MORALES AGREES TO DROP THE CASE IN EXCHANGE FOR METHODIST'S COMMITMENT TO PROVIDE A CERTAIN LEVEL OF CHARITABLE CARE SEPTEMBER NINETEEN NINETY ONE ATTORNEY GENERAL MORALES FORMS A TASK FORCE TO INVESTIGATE CHARGES OF BOUNTY HUNTING' AND OTHER ABUSIVE PRACTICES BY PSYCHIATRIC HOSPITALS OPERATING IN THE STATE IN JANUARY NINETEEN NINETY FOUR HIS OFFICE FILES SUIT AGAINST A FORT WORTH HOSPITAL ALLEGING IT PAID A HIGH SCHOOL COUNSELOR TO RECRUIT PATIENTS NOVEMBER NINETEEN NINETY THREE MR. MORALES CALLS FOR A BAN ON SMOKING IN FAST FOOD RESTAURANTS AND HIS CONSUMER PROTECTION CHIEF THREATENS TO SUE UNDER THE DECEPTIVE TRADE PRACTICES ACT IF THE RESTAURANTS DON'T COMPLY METRICOM INCORPORATED LOS GATOS CALIFORNIA A PROVIDER OF WIRELESS DATA COMMUNICATIONS NETWORKS SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE PROPOSED PUBLIC OFFERING OF TWO POINT TWO MILLION OF ITS COMMON SHARES OF THE SHARES BEING OFFERED TWO POINT ONE MILLION WILL BE OFFERED BY THE COMPANY WITH THE REMAINING ONE HUNDRED THOUSAND SHARES BEING OFFERED BY CERTAIN SELLING SHAREHOLDERS THE STOCK CLOSED AT TWENTY TWO DOLLARS AND TWENTY FIVE CENTS A SHARE UP FIFTY CENTS IN NASDAQ STOCK MARKET TRADING LEAD UNDERWRITERS OF THE OFFERING ARE DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION AND COWEN AND COMPANY METRICOM SAID METRICOM SAID IT PLANS TO USE PROCEEDS TO EXPAND ITS WIRELESS DATA TECHNOLOGY APPLICATIONS CURRENTLY THE COMPANY HAS NINE POINT EIGHT MILLION COMMON SHARES OUTSTANDING MR. COFFEE INCORPORATED SAID ITS BOARD OF DIRECTORS HIRED EQUITABLE COMPANIES DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION AS ITS FINANCIAL ADVISER THE COMPANY LAST MONTH SAID IT WAS ENTERING DISCUSSIONS WITH AN UNIDENTIFIED POTENTIAL BUYER MR. COFFEE IS THE LEADING SELLER OF AUTOMATIC DRIP COFFEE MAKERS IN THE U. S. WITH ABOUT THIRTY FOUR PERCENT OF THE MARKET THE CLEVELAND COMPANY ALSO SELLS COFFEE FILTERS WATER FILTER MACHINES ICED TEA MAKERS AND A PORTABLE POTATO BAKER LAST SPRING MR. COFFEE WAS THE SUBJECT OF TAKEOVER RUMORS THOUGH NOTHING CAME OF THEM THOMAS C. JORLING FIFTY THREE YEARS OLD WAS NAMED VICE PRESIDENT ENVIRONMENTAL AFFAIRS A NEW POST AT THIS PRINTING AND WRITING PAPERS PAPERBOARD PACKAGING AND WOOD PRODUCTS COMPANY HE WAS COMMISSIONER FOR NEW YORK STATE'S DEPARTMENT OF ENVIRONMENTAL CONSERVATION IN A NEW COMMERCIAL FOR CHIPS AHOY A TECHNICAL TOUR DE FORCE TRANSFORMS THE EXCLAMATION POINT ON THE COOKIE BAG INTO A DANCING FOOL THE BLUE PUNCTUATION MARK SPINS AND GYRATES TO BENNY GOODMAN'S QUOTE SWING SWING SWING QUOTE THE TELEVISION AD FROM F. C. B. SLASH LEBER KATZ PARTNERS FOR R. J. R. NABISCO'S CHIPS AHOY ACTUALLY HAS A PURPOSE BEYOND TRYING TO MOVE MORE CHOCOLATE CHIP COOKIES OFF SUPERMARKET SHELVES ANOTHER SUBTLER OBJECTIVE IS TO INTRODUCE MADISON AVENUE TO A NEW CREATIVE TECHNIQUE THE CREATOR OF THE NEW ADVERTISING APPROACH CALLED DIMENSIONAL ANIMATION IS WILL VINTON AND HE IS COUNTING ON SUCCESS TO REPEAT ITSELF MR. VINTON SWEPT INTO ADVERTISING IN THE NINETEEN EIGHTIES WITH CLAYMATION WHICH SPAWNED THOSE DANCING RAISINS SINGING I HEARD IT THROUGH THE GRAPEVINE AS WELL AS MANY IMITATORS BUT THE ADVERTISING WORLD WHICH LATCHES ONTO NEW GIMMICKS WITH A VENGEANCE IS EQUALLY UNFORGIVING WHEN THE FAD FADES IN NINETEEN NINETY ONE MR. VINTON VISITED AGENCIES TO CONVINCE MADISON AVENUE THAT CLAYMATION WASN'T OVEREXPOSED AND WAS FAR FROM DEATH'S DOOR BUT IT WAS A TOUGH SELL WITH CLAYMATION SO ASSOCIATED WITH THE CALIFORNIA RAISINS CAMPAIGN AD EXECUTIVES COMPLAINED THEN THAT AS SOON AS CONSUMERS SAW A CLAYMATION COMMERCIAL THEY USUALLY THOUGHT OF RAISINS AND NOT THE PRODUCT IN THE ADVERTISEMENT WE KNEW WE HAD TO OPEN UP OUR TECHNICAL TOOLS BECAUSE WE HAD A STUDIO OF ARTISTS AND ANIMATORS WHO WERE UNDERUTILIZED CONCEDES MR. VINTON CHIEF EXECUTIVE OFFICER OF THE WILL VINTON STUDIOS IN PORTLAND OREGON THE IMPORTANT THING WHEN YOU GET PIGEONHOLED AS WE DID WITH THE RAISINS AND CLAYMATION IS TO SHOW THE RANGE OF WHAT ELSE IS POSSIBLE SO MR. VINTON AND HIS STUDIO DEVELOPED A COMPLICATED TECHNIQUE OF MELDING THREE FORMS OF PRODUCTION CLAYMATION STOP MOTION ANIMATION AND COMPUTER ANIMATION THE CHIPS AHOY COMMERCIAL IS THE FIRST TIME THE THREE HAVE BEEN COMBINED IT WAS A PAINSTAKING PROCESS TAKING TEN SIX DAY WORKWEEKS TO PRODUCE A HALF MINUTE SPOT THE IDEA TO USE THE THREE METHODS IN ONE COMMERCIAL CAME AFTER THE AD AGENCY DISCUSSED WITH VINTON EXECUTIVES WHAT IT HOPED TO ACCOMPLISH THEY WANTED DIMENSION IN THE SPOT NOT UNLIKE THREE D. SAYS DAVID ALTSCHUL PRESIDENT OF VINTON STUDIOS THEY WANTED THE EXCLAMATION POINT TO LEAP OFF THE PACKAGE AND HAVE A PERSONALITY IN THE COMMERCIAL THE PUNCTUATION MARK BOUNCES ONSTAGE PLUNGES INTO A CHIPS AHOY BAG AND DIVES INTO A SEA OF COOKIES AMONG OTHER FEATS VINTON AND F. C. B. SLASH LEBER KATZ DECLINE TO DISCLOSE THE COST OF CREATING THE ANIMATED GYMNASTICS ACCORDING TO A. C. NIELSEN CHIPS AHOY RANKS AS THE NUMBER TWO NATIONAL BRAND IN THE COOKIE CATEGORY WITH SALES OF ONE HUNDRED SIXTY FOUR POINT ONE MILLION DOLLARS UP FOUR PERCENT IN THE FIFTY TWO WEEK PERIOD ENDED SEPTEMBER ELEVENTH THE NUMBER ONE COOKIE BRAND IS R. J. R. NABISCO'S OREO WHOSE SALES WERE DOWN FOUR POINT FIVE PERCENT TO TWO HUNDRED ONE POINT ONE MILLION DOLLARS SHOPPERS HAVE BEEN SWITCHING TO CHEAPER PRIVATE LABEL COOKIES WHICH POSTED A SALES GAIN OF SIXTEEN PERCENT TO TWO HUNDRED NINETY SEVEN MILLION DOLLARS THE ENTIRE COOKIE CATEGORY HAD SALES OF THREE POINT THREE BILLION DOLLARS UP THREE POINT EIGHT PERCENT THE VISUAL APPEAL OF THE COMMERCIAL WHICH BEGAN AIRING LAST WEEK ON SUCH BROADCAST NETWORK SHOWS AS QUOTE HOME IMPROVEMENT QUOTE QUOTE MAD ABOUT YOU QUOTE QUOTE SISTERS QUOTE AND QUOTE COACH QUOTE IS AIMED AT WHAT ELSE BREAKING THROUGH THE CLUTTER INDEED AS SOON AS THE SPOT BEGINS WITH THE BIG BAND CLASSIC IT'S HARD TO RESIST LOOKING AT THE SCREEN AND ONCE THE EXCLAMATION STARTS DOING ITS THING MOST VIEWERS WILL BE HOOKED EVERYONE IN ADVERTISING IS LOOKING FOR SOMETHING NEW TO LATCH ONTO SAYS BOB NEUMAN SENIOR VICE PRESIDENT GROUP CREATIVE DIRECTOR AT F. C. B. SLASH LEBER KATZ THE NEW YORK OFFICE OF FOOTE CONE AND BELDING COMMUNICATIONS THIS COULD BE IT AND WE'RE FIRST WITH IT BUT OTHER AD AGENCY EXECUTIVES ARE SKEPTICAL THAT CLIENTS WILL BE SO WILLING TO FOLLOW THE LEAD OF R. J. R. NABISCO MY FEELING IS THAT ONCE SOMEONE HAS DONE IT IT'S BEEN DONE AND EVERYONE ELSE IS COPYING IT SAYS JONATHAN MANDELL GROUP CREATIVE DIRECTOR AT YOUNG AND RUBICAM TECHNIQUES LIKE CLAYMATION AND DIMENSIONAL ANIMATION AREN'T ADVERTISING IDEAS THEY ARE MECHANICAL DEVICES IN SEARCH OF AN ADVERTISING IDEA QUOTE MR. MANDELL WHO HASN'T SEEN THE CHIPS AHOY SPOT ADDS THAT'S NOT TO SHORT CHANGE WHAT THEY'RE TRYING TO DO IT MAY BE GREAT WHAT USUALLY HAPPENS IS THAT THE FIRST ONE OUT THERE TENDS TO OWN THE TECHNIQUE EVERYTHING THAT FOLLOWED THE RAISINS LOOKED LIKE A CHEAP IMITATION EVEN IF IT WASN'T SUCH AN ATTITUDE IS PERHAPS WHY THE VINTON STUDIOS HAVE HOPES FOR DIMENSIONAL ANIMATION FAR BEYOND THE CONFINES OF MADISON AVENUE MY EXPECTATIONS ARE FOR IT TO BE USED IN THEATRICAL FAMILY ENTERTAINMENT MR. ALTSCHUL SAYS ALL THE HOLLYWOOD STUDIOS ARE DYING TO GET ON THE BANDWAGON FOR A TECHNICAL BREAKTHROUGH MR. VINTON CONCEDES THAT IT WAS TIME TO EVOLVE BEYOND THE CREATURES CREATED BY CLAYMATION CLAYMATION SERVED US WELL FOR A VERY LONG TIME MR. VINTON SAYS QUOTE BUT NOW WE HAVE SOMETHING NEW THAT WE DESIRE TO SHOW TO OTHER AD AGENCIES WE WERE LIMITED WITH WHAT WE COULD DO WITH CLAYMATION HE CONTINUES NOW WITH COMBINING THE THREE TECHNIQUES WE FEEL THE SKY IS THE LIMIT NEGOTIATIONS FOR AYER INCORPORATED TO ACQUIRE HAL RINEY AND PARTNERS INCORPORATED SAN FRANCISCO HAVE BEEN ABANDONED FOR THE TIME BEING AYER SAID LATE YESTERDAY ONE INDUSTRY EXECUTIVE SAID HOWEVER THE TALKS WHICH BEGAN IN OCTOBER WEREN'T LIKELY TO EVER RESUME IN A STATEMENT HAL RINEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID SOME DIFFERENCES AROSE THAT WERE TECHNICAL IN NATURE AS OPPOSED TO PHILOSOPHICAL MR. RINEY DECLINED TO COMMENT BEYOND HIS PREPARED STATEMENT HOWEVER AN OFFICIAL AT RINEY WHO DIDN'T WANT TO BE QUOTED BY NAME SAID IT WASN'T A MUTUAL DECISION THIS AGENCY DECIDED NOT TO PROCEED WITH THE MERGER ABOUT A WEEK AGO QUOTE IN AN INTERVIEW IN DECEMBER MR. RINEY PUT THE ODDS OF THE DEAL GOING THROUGH AT FIFTY TO FIFTY ACCORDING TO AN INDIVIDUAL WITH KNOWLEDGE OF THE DISCUSSIONS MR. RINEY WAS SCHEDULED TO SIGN DOCUMENTS THIS WEEK THAT WOULD HAVE CREATED THE AYER RINEY AGENCY THIS WAS AN ELEVENTH HOUR PULLOUT SAID THE INDIVIDUAL WHO DIDN'T WANT TO BE IDENTIFIED IT WAS A DONE DEAL AS OF MONDAY AFTERNOON IN THE NEW AGENCY MR. RINEY WOULD HAVE BEEN CO CHAIRMAN WITH AYER CHAIRMAN AND CHIEF EXECUTIVE OFFICER JERRY J. SIANO FIFTY EIGHT YEARS OLD ALTHOUGH DETAILS OF THE CONTRACT COULDN'T BE DETERMINED THE SECOND INDIVIDUAL SAID IT CALLED FOR MR. RINEY SIXTY TWO TO REMAIN WITH THE AGENCY FOR AT LEAST TWO YEARS AND BE HEAVILY INVOLVED WITH THE CLIENTS THIS ISN'T THE FIRST TIME THAT AYER TRIED AN AGENCY MARRIAGE IN NINETEEN NINETY TWO IT HELD PROLONGED DISCUSSIONS WITH KETCHUM COMMUNICATIONS INCORPORATED IN PITTSBURGH THOSE TALKS COLLAPSED LAST JANUARY BECAUSE OF PHILOSOPHICAL DIFFERENCES ON HOW THE COMBINED AGENCIES WOULD OPERATE MR. SIANO WAS TRAVELING AND COULDN'T BE REACHED FOR COMMENT IN A STATEMENT HE SAID HE WAS SORRY IT DIDN'T WORK OUT I WISH MR. RINEY AND HIS AGENCY WELL QUOTE COCA COLA COMPANY AND THE NATIONAL BASKETBALL ASSOCIATION HAVE REACHED A FIVE YEAR AGREEMENT FOR THE SOFT DRINK GIANT TO BE A MAJOR GLOBAL SPONSOR OF THE LEAGUE THE PARTNERSHIP INVOLVING AN ESTIMATED THREE HUNDRED MILLION DOLLARS COMMITMENT ON COKE'S PART WILL BE LAUNCHED WITH A THIRTY SECOND T. V. AD ON THE N. B. A.'S ALL STAR GAME ON SUNDAY THE SPOT PART OF A NEW FLIGHT OF ADS FROM CREATIVE ARTISTS AGENCY FEATURES ANIMATED UNIFORMS OF SEVEN N. B. A. STARS PLAYING A FRENETIC GAME THE SPONSORSHIP IS COKE'S FIRST INTEGRATED MARKETING EFFORT ON SUCH A LARGE SCALE WITH A PRO SPORTS LEAGUE THE N. B. A.'S DEMOGRAPHICS MATCH OUR TARGET VERY WELL SAID M. DOUGLAS IVESTER COKE'S EXECUTIVE VICE PRESIDENT AND PRINCIPAL OPERATING OFFICER COCA COLA HAS OTHER GLOBAL SPORTS MARKETING TIE INS INCLUDING SPONSORSHIPS OF THE OLYMPIC GAMES AND WORLD CUP SOCCER BUT MR. IVESTER SAID THE N. B. A. DELIVERS A YOUNGER AUDIENCE THAN THE OLYMPICS IN THE TWELVE TO TWENTY NINE YEAR OLD RANGE AND A BIGGER U. S. PRESENCE THAN THE WORLD CUP N. B. A. GAMES ALSO ARE TELEVISED IN MORE THAN ONE HUNDRED COUNTRIES PORSCHE CARS NORTH AMERICA IS ENDING A FIVE YEAR ABSENCE FROM TELEVISION ADVERTISING WITH A CAMPAIGN FROM AD AGENCY GOODBY BERLIN AND SILVERSTEIN A SAN FRANCISCO UNIT OF OMNICOM GROUP PORSCHE IS MOUNTING A TWENTY MILLION DOLLAR ADVERTISING AND MARKETING CAMPAIGN THIS YEAR TO REVIVE THE PORSCHE NAME IN THE U. S. AND INTRODUCE A NEW MODEL THE NINE HUNDRED ELEVEN CARRERA PORSCHE'S U. S. SALES LAST YEAR WERE LESS THAN FOUR THOUSAND DOWN FROM A HIGH OF THIRTY THOUSAND IN NINETEEN EIGHTY SIX THE SPOTS PROFILE ACTUAL EMPLOYEES OF THE PORSCHE FACTORY IN STUTTGART ZUFFENHAUSEN GERMANY AND TOUT THE QUALITY OF THE CARS REPUBLICAN NATIONAL CHAIRMAN HALEY BARBOUR LIKES TO CALL CALIFORNIA QUOTE AMERICA'S WIND TUNNEL QUOTE MEANING IT IS USUALLY TESTING OUT TRENDS THE REST OF US WILL BE PICKING UP LATER SO AT THE BEGINNING OF AN ELECTION YEAR IN WHICH A STAGGERING ONE HUNDRED MILLION DOLLARS IS LIKELY TO BE SPENT ON CAMPAIGNS IN CALIFORNIA IT'S WORTH ASKING WHAT'S THE POLITICAL ZEITGEIST IN THE GOLDEN STATE THE ANSWER IS INTRIGUING WHEN A VISITOR TO CALIFORNIA CAN LOOK PAST THE EARTHQUAKES AND MUD SLIDES WHAT HE SEES IS A STRIKING NEW KIND OF POLITICAL PRAGMATISM EMERGING OLD IDEOLOGIES AND PARTY LABELS ARE BLURRING AND A NEW BALANCE BETWEEN THE ROLES OF BUSINESS AND GOVERNMENT IS DEVELOPING THIS JUST MAY BE THE PRECURSOR OF A NATIONAL TREND WHEN REPUBLICAN RESEARCHERS CHRISTINE MATTHEWS AND BILL MCINTURFF RECENTLY TRIED TO FORECAST PUBLIC OPINION TRENDS FOR THE REST OF THE NINETEEN NINETIES ONE OF THE CENTRAL THEMES THEY PREDICTED WAS A REJECTION OF PARTISAN AND IDEOLOGICAL LABELING IN CALIFORNIA THAT'S HAPPENING BECAUSE EVERYBODY IS HAVING TO RETHINK OLD VERITIES ON THE FLY THANKS TO THE STATE'S REMARKABLE RUN OF TRAGEDIES EARTHQUAKES RIOTS RECESSION LOSS OF FOUR HUNDRED FIFTEEN THOUSAND DEFENSE RELATED JOBS CALIFORNIANS ARE CRANKY AND MORE THAN READY TO TAKE IT OUT ON THEIR POLITICIANS AND AS DOCTOR JOHNSON NOTED THERE'S NOTHING LIKE THE PROSPECT OF A GOOD HANGING TO FOCUS THE MIND SO POLITICIANS ARE ON A SOBER SEARCH FOR NON IDEOLOGICAL SOLUTIONS THAT HAS PROMPTED DEMOCRATS TO MOVE TOWARD REPUBLICAN THINKING ON CRIME IMMIGRATION AND ECONOMICS WHILE REPUBLICANS HAVE MOVED TOWARD DEMOCRATIC THINKING ON GOVERNMENT ACTIVISM THIS PROCESS IS BEST PERSONIFIED BY THE STATE'S REPUBLICAN GOVERNOR PETE WILSON AND HIS MOST LIKELY DEMOCRATIC OPPONENT THIS FALL STATE TREASURER KATHLEEN BROWN GOVERNOR WILSON IS ALMOST IMPOSSIBLE TO TYPECAST IS HE A CONSERVATIVE WELL YES BUT NOT NEARLY ENOUGH FOR HIS OWN PARTY'S RIGHT WING WHICH SNEERS AT HIM FOR SUPPORTING ABORTION RIGHTS OPPOSING A STATE INITIATIVE ON SCHOOL CHOICE AND CHAMPIONING A SEVEN BILLION DOLLAR TAX INCREASE IN HIS FIRST YEAR IN OFFICE HE TALKS OF PREVENTIVE GOVERNMENT EMPHASIZING SUCH SERVICES AS WIDESPREAD PRENATAL CARE SO IS HE A PROGRESSIVE WELL YES BUT NOT NEARLY ENOUGH FOR THE STATE'S DEMOCRATS WHO FOUGHT HIM SO BITTERLY OVER SPENDING CUTS THAT CALIFORNIA VIRTUALLY SHUT DOWN FOR THE SUMMER OF NINETEEN NINETY TWO AND PAID ITS BILLS WITH I. O. U.S DURING A BLOODY BUDGET DEBATE THEY SAY PREVENTIVE GOVERNMENT HAS WASHED UP ON THE ROCKS OF DRACONIAN BUDGET CUTS AND GOVERNOR WILSON HITS ALL THE CONSERVATIVE HOT BUTTONS ON CRIME AND IMMIGRATION YET IN THE LAST YEAR GOVERNOR WILSON AND THE DEMOCRATS CAME TOGETHER TO PASS A STRIKINGLY BUSINESS FRIENDLY ECONOMIC PACKAGE DESIGNED TO BREATHE LIFE BACK INTO THE STATE'S SAGGING BUSINESS SECTOR IT INCLUDES AN OVERHAUL OF THE WORKERS' COMPENSATION LAW A SALES TAX CREDIT FOR PURCHASE OF MANUFACTURING EQUIPMENT A CAPITAL GAINS TAX BREAK FOR INVESTMENTS IN SMALL BUSINESSES AND TAX RELIEF FOR START UP BUSINESSES MORE SUCH IDEAS ARE IN THE WILSON HOPPER NOW COMES MS. BROWN DAUGHTER AND SISTER OF CALIFORNIA'S LAST TWO DEMOCRATIC GOVERNORS SEEKING TO TAKE GOVERNOR WILSON'S SEAT IN DOING SO SHE HAS MOVED WELL TO THE RIGHT OF MANY DEMOCRATS ON IMMIGRATION AND CRIME GOVERNOR WILSON'S TWO HOT BUTTON ISSUES SHE'S IN FAVOR OF MANDATORY SENTENCES FOR FIRST TIME DRUG OFFENDERS CURFEWS FOR TEENS AND LIFE SENTENCES FOR THREE TIME FELONS SHE PROMISES TO CARRY OUT EXECUTIONS DESPITE PERSONAL MISGIVINGS ABOUT THE DEATH PENALTY TO CURB ILLEGAL IMMIGRATION SHE WANTS TO USE THE MILITARY TO SHORE UP THE BORDER PATROL AND TO REQUIRE ALL EMPLOYEES TO CARRY A TAMPER PROOF SOCIAL SECURITY CARD TO PROVE LEGAL STATUS MORE SIGNIFICANTLY SHE HAS JUST LAID OUT HER ECONOMIC PHILOSOPHY IN A SPEECH THAT AS ONE DEMOCRAT GRUMBLES GOVERNOR WILSON COULD HAVE GIVEN IT CALLS FOR A TAX MORATORIUM FOR NEW BUSINESSES A TAX CREDIT FOR JOB CREATION SIMPLIFICATION OF THE REGULATORY STRUCTURE AND CREATION OF A NEW BUSINESS CAPITAL FUND INTRIGUINGLY MS. BROWN HAS ECHOED GOVERNOR WILSON IN OPPOSING AN INSTANT TAX INCREASE TO COVER THE COST OF THE LOS ANGELES EARTHQUAKE THIS HARDLY MEANS THAT DEMOCRATS AND REPUBLICANS AGREE ON EVERYTHING INSURANCE COMMISSIONER JOHN GARAMENDI THE OTHER DEMOCRATIC GUBERNATORIAL CANDIDATE HAS AN ECLECTIC POPULIST MESSAGE ALL HIS OWN AND HE DOES CALL FOR AN EARTHQUAKE TAX BOOST AND THERE'S PLENTY ON WHICH GOVERNOR WILSON AND MS. BROWN DISAGREE HE HINTS AT DENYING ILLEGAL IMMIGRANTS MEDICAL AND EDUCATION SERVICES SHE IS PASSIONATELY OPPOSED SHE DIDN'T BACK THE NORTH AMERICAN FREE TRADE AGREEMENT HE DID BUT THE POINT IS THAT IT'S GETTING HARDER TO PREDICT WHERE CALIFORNIA'S POLITICAL LEADERS WILL COME DOWN ON ANY PARTICULAR ISSUE THE OLD STEREOTYPES ARE DYING IN CALIFORNIA AND THAT'S HEALTHY FOR A TROUBLED STATE AND THE NATION THAT MAY FOLLOW IN ITS FOOTSTEPS AGAIN YOU GET A GREAT JOB OFFER A GREAT NEW BOSS A GREAT NEW COMPANY WHAT'S WRONG WITH THIS PICTURE YOU LACK A WRITTEN EMPLOYMENT AGREEMENT IN AN ERA OF RAMPANT JOB INSECURITY MORE MANAGERS ARE SEEKING THESE PACTS TO REDUCE THE DANGERS INVOLVED IN SWITCHING COMPANIES SOME ACCORDS NOW GO FAR BEYOND THE USUAL SWEETENED SEVERANCE PACKAGE OFFERING EXTENDED MEDICAL BENEFITS OR A GUARANTEE TO MOVE YOU BACK IF YOU RELOCATE FOR EXAMPLE BUT WATCH OUT EMPLOYERS ARE DEMANDING TOUGHER TRADEOFFS IN RETURN THESE PACTS ARE WRITTEN UNDERSTANDINGS OUTLINING YOUR EMPLOYMENT CONDITIONS INCLUDING COMPENSATION BENEFITS AND ANY SEVERANCE AGREEMENT AND YOUR EMPLOYER'S EXPECTATIONS THEY SHOULD CONTAIN LANGUAGE SAYING THE ACCORD IS BINDING BETWEEN TWENTY PERCENT AND TWENTY FIVE PERCENT OF MIDDLE MANAGERS NOW GET THE PACTS USUALLY LESS FORMAL THAN FULL BLOWN CONTRACTS WHEN THEY CHANGE EMPLOYERS UP FROM FIVE PERCENT OR LESS FIVE YEARS AGO ESTIMATES PEARL MEYER A NEW YORK COMPENSATION CONSULTANT JOBHOPPING SHE SAYS ENTAILS QUOTE A MUCH HIGHER RISK THAN IN PRIOR YEARS QUOTE A SIMPLE OFFER LETTER MAY NOT SUFFICE IN JULY NINETEEN NINETY TWO SWEET LIFE FOODS IN SUFFIELD CONNECTICUT WROTE ARNOLD MARGOLIS CONFIRMING HIS SELECTION AS THE SEVENTY TWO THOUSAND FIVE HUNDRED DOLLAR A YEAR DIRECTOR OF HEALTH AND BEAUTY AIDS FOR THE WHOLESALE DISTRIBUTOR OF FOOD PRODUCTS MR. MARGOLIS THEN FORTY FOUR YEARS OLD SAYS HE GAVE UP A MARKETING DIRECTOR'S JOB IN ROCHESTER N. Y. AND MOVED TO CONNECTICUT BUT SWEET LIFE INEXPLICABLY WITHDREW ITS OFFER A FEW DAYS BEFORE HE WAS SUPPOSED TO START WORK IN AUGUST HE CONTENDS I THOUGHT I HAD PROTECTED MYSELF I WAS TOTALLY LEFT HOLDING THE BAG COMPLAINS MR. MARGOLIS NOW A CONSULTANT I HAVEN'T BEEN ABLE TO FIND A POSITION IN MY CHOSEN PROFESSION HE HAS SUED THE COMPANY FOR BREACH OF CONTRACT SWEET LIFE DECLINES TO COMMENT SEVERAL FACTORS MAY INFLUENCE WHETHER YOU CAN OBTAIN A DETAILED EMPLOYMENT AGREEMENT FOR POSTS BELOW THE HIGHEST RUNGS CAREER SPECIALISTS SAY OBVIOUSLY THE SCARCER YOUR SKILLS AND THE MORE YOU ARE IN DEMAND THE BETTER A LARGE MANUFACTURER RECENTLY ATTRACTED A ONE HUNDRED THOUSAND DOLLAR A YEAR FINANCE EXECUTIVE BY AGREEING THAT IF THINGS DON'T WORK OUT THE COMPANY WILL MAINTAIN HIS MEDICAL BENEFITS UNTIL HE FINDS AN EMPLOYER OFFERING THE SAME COVERAGE SUCH AN OPEN ENDED COMMITMENT IS UNUSUAL BUT THEY WANTED THE GUY A LOT EXPLAINS HAROLD JOHNSON A MANAGING DIRECTOR OF RECRUITERS NORMAN BROADBENT INTERNATIONAL IN NEW YORK THE PROMISE OF CONTINUED COVERAGE EXPIRES AFTER HE'S WORKED THERE FOR TWO YEARS MOVING LONG DISTANCES FOR A JOB ALSO MAY STRENGTHEN YOUR CHANCES OF NEGOTIATING A GENEROUS EMPLOYMENT ACCORD MANY TRANSFERRED MANAGERS SEEK A PLEDGE THAT AN EMPLOYER WILL MOVE THEM BACK AT COMPANY EXPENSE IF THEY LOSE THEIR POSITIONS AN OPERATOR OF STEEL FOUNDRIES HIRED A CHICAGO MAN TO BE A SENIOR MANAGER IN AN IOWA TOWN OF THIRTEEN THOUSAND PEOPLE I COULDN'T AFFORD TO BE STUCK HERE HE REMEMBERS QUOTE IT'S PRETTY HARD TO GET A JOB IN A TOWN THIS SIZE QUOTE AT HIS INSISTENCE THE COMPANY GAVE HIM A WRITTEN GUARANTEE THAT IF THE JOB ENDED I WOULD BE MOVED BACK TO CHICAGO THE FORTY FOUR YEAR OLD MANAGER QUIT LAST SEPTEMBER THREE YEARS AFTER MOVING BUT HE DECIDED NOT TO USE HIS RETURN GUARANTEE THE MAN NOW A GENERAL MANAGER FOR A LOCAL TRUCKING COMPANY MET A WOMAN IN TOWN AND THEY PLAN TO MARRY NEXT YEAR IN ADDITION YOU CAN REASONABLY DEMAND AN EMPLOYMENT AGREEMENT WHEN YOU JOIN A FINANCIALLY RISKY SITUATION NOWADAYS A CHIEF EXECUTIVE ENLISTED TO REVIVE AN AILING BUSINESS COMMONLY INSISTS ON A LETTER OF CREDIT OR ESCROW ACCOUNT TO SAFEGUARD SEVERANCE PAY AGAINST A POSSIBLE BANKRUPTCY THESE CEOS OFTEN GET SIMILAR THOUGH USUALLY MORE MODEST DEALS FOR OTHER MEMBERS OF THEIR MANAGEMENT TEAMS RECRUITERS AND INVESTMENT BANKERS SAY THERE IS A FINITE AMOUNT OF TALENT TO FIX BIG PROBLEMS IN COMPANIES NOTES RAY HIPP FIFTY ONE FORMER EXECUTIVE VICE PRESIDENT OF COMDISCO A HIGHTECHNOLOGY EQUIPMENT LESSOR IN ROSEMONT ILLINOIS IN JANUARY HE REJECTED AN OFFER TO TURN AROUND A DATA PROCESSING COMPANY BECAUSE HE BELIEVED HE COULDN'T FIX IT BUT MR. HIPP BELIEVES HE COULD HAVE WON AN AGREEMENT FOR TWO YEARS OF SEVERANCE PAY IF HE LEFT BY MUTUAL CONSENT DURING THE FIRST SIX MONTHS WHEN YOU ARE GOING INTO SOMETHING THAT UNCERTAIN HE SAYS YOU NEED SOME DEGREE OF ASSURANCE AND NOT JUST FOR TAKING THE TOP JOB A COMPANY MAY EXACT ONEROUS TRADEOFFS FOR SUCH ASSURANCES HOWEVER SUCH AS ADVANCE NOTICE OF RESIGNATION OR LESS PROTECTION AGAINST FIRING WITHOUT CAUSE AS HIGH TECHNOLOGY SIMPLIFIES THE THEFT OF CORPORATE SECRETS BUSINESSES HAVE BEGUN TO TIGHTEN NONCOMPETE CLAUSES IN EMPLOYMENT ACCORDS SOME BAR YOU FROM WORKING FOR A LENGTHY LIST OF COMPETITORS DURING A SET PERIOD THESE CLAUSES ARE SOMETIMES CONTESTED IN COURT BUT YOU MAY BE ABLE TO OVERCOME THEM WITHOUT CALLING IN THE LAWYERS ONE MARKETING VICE PRESIDENT RECEIVED AN OFFER FROM A RIVAL SOFTWARE SYSTEMS MAKER LISTED IN HIS AGREEMENT'S NONCOMPETE CLAUSE HE PERSUADED HIS OLD BOSS TO REMOVE THE RESTRICTION BY SWEARING THAT HE WASN'T GOING TO DO THE SAME THING IN THE NEW POSITION SAYS ALAN GLOU PRESIDENT OF GLOU INTERNATIONAL A SEARCH FIRM IN NEEDHAM MASSACHUSETTS SO THE VICE PRESIDENT JOB HOPPED AND POCKETED MORE THAN TWO HUNDRED FIFTY THOUSAND DOLLARS OF SEVERANCE PAY STOCKS CREPT MOSTLY LOWER AS NERVOUS INVESTORS WATCHED BOND PRICES SLIDE A MOVE BY THE FEDERAL RESERVE LAST FRIDAY TO TIGHTEN CREDIT CONDITIONS HAS LEFT INVESTORS SHARPLY FOCUSED ON THE ACTION IN BONDS AND MARKET INTEREST RATES THEY DIDN'T LIKE WHAT THEY SAW YESTERDAY ANALYSTS SAID THE THIRTY YEAR TREASURY BOND LOST MORE THAN THREE QUARTERS POINT LIFTING ITS YIELD TO SIX POINT FOUR FIVE PERCENT BOND INVESTORS WERE SAID TO BE WORRIED ABOUT THE TREASURY'S QUARTERLY REFUNDING AUCTIONS WHICH GOT UNDER WAY YESTERDAY WITH THE SALE OF THREE YEAR NOTES AND ABOUT A GOVERNMENT INFLATION REPORT DUE ON FRIDAY THE STOCK MARKET LOSSES WERE MUCH LESS SEVERE THE DOW JONES INDUSTRIAL AVERAGE LOST A SCANT ZERO POINT TWO NINE TO THREE THOUSAND NINE HUNDRED SIX POINT OH THREE BROAD BASED INDEXES THAT TRACK MOSTLY NEW YORK STOCK EXCHANGE ISSUES ALSO EASED ADVANCING ISSUES ON THE BIG BOARD OUTNUMBERED DECLINERS ABOUT ONE THOUSAND ONE HUNDRED SEVENTY TWO TO NINE HUNDRED SIXTY TWO VOLUME WAS THREE HUNDRED EIGHTEEN MILLION FORTY THOUSAND SHARES DOWN FROM THREE HUNDRED FORTY SIX MILLION SEVEN HUNDRED EIGHTY THOUSAND ON MONDAY THE DOW JONES INDUSTRIALS NEVER MOVED MORE THAN FIFTEEN POINTS HIGHER OR LOWER THAN THEIR CLOSING LEVEL OF MONDAY WHEN THEY CLOSED WITH A GAIN OF THIRTY FOUR POINT NINE OH ON FRIDAY THEY PLUMMETED NINETY SIX POINT TWO FOUR THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX SLIPPED ZERO POINT SEVEN ONE OR ZERO POINT ONE FIVE PERCENT TO FOUR HUNDRED SEVENTY ONE POINT OH FIVE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED ZERO POINT ZERO FIVE OR ZERO POINT ZERO TWO PERCENT TO TWO HUNDRED SIXTY ONE POINT NINE SIX AND THE DOW JONES EQUITY MARKET INDEX LOST ZERO POINT FIVE NINE OR ZERO POINT ONE THREE PERCENT TO FOUR HUNDRED FORTY FIVE POINT EIGHT FIVE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX WAS ALSO HIGHER UP ZERO POINT EIGHT FOUR OR ZERO POINT ONE EIGHT PERCENT TO FOUR HUNDRED SEVENTY SEVEN POINT SIX EIGHT BREAKING A THREE SESSION LOSING STREAK ECONOMICALLY SENSITIVE STOCKS STRONG ALL YEAR AND THE LEADERS IN MONDAY'S RALLY GAINED GROUND AGAIN CATERPILLAR ROSE TWO AND THREE QUARTERS TO ONE HUNDRED EIGHT GENERAL MOTORS ADVANCED ONE AND THREE QUARTERS TO SIXTY FOUR AND THREE QUARTERS GOODYEAR TIRE ADDED ONE AND ONE EIGHTH TO FORTY SEVEN AND ONE HALF AND MINNESOTA MINING AND MANUFACTURING JUMPED ONE TO ONE HUNDRED FIVE AND SEVEN EIGHTHS UTILITIES AND BANKS WERE WEAK IN TANDEM WITH THE BOND MARKET CHASE MANHATTAN SLIPPED ONE HALF TO THIRTY THREE AND ONE QUARTER NATIONSBANK WAS DOWN SEVEN EIGHTHS TO FORTY EIGHT AND ONE HALF AND MIDLANTIC NASDAQ LOST THREE EIGHTHS TO TWENTY SIX AND SEVEN EIGHTHS THE DOW JONES UTILITIES AVERAGE DROPPED ONE POINT THREE TWO OR ZERO POINT SIX ZERO PERCENT TO TWO HUNDRED EIGHTEEN POINT OH THREE SEARS ROEBUCK TUMBLED THREE AND ONE QUARTER TO FORTY SEVEN AND THREE QUARTERS EVEN THOUGH THE CHICAGO RETAILER REPORTED A FOURTH QUARTER PROFIT OF ONE DOLLAR AND THIRTY NINE CENTS A SHARE REVERSING A YEAR EARLIER LOSS THE EARNINGS HOWEVER WERE BELOW THE ONE DOLLAR AND FORTY NINE CENTS MEAN ESTIMATE OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM ALLIEDSIGNAL CLIMBED ONE AND ONE HALF TO SEVENTY SEVEN AND THREE EIGHTHS AFTER THE MORRISTOWN N. J. AVIATION AND AUTOMOBILE COMPONENTS MAKER SAID ITS FOURTH QUARTER EARNINGS JUMPED TO ONE DOLLAR AND TWENTY FIVE CENTS A SHARE FROM NINETY EIGHT CENTS A YEAR EARLIER SEPARATELY THE COMPANY DECLARED A TWO FOR ONE STOCK SPLIT AND SAID IT WILL INCREASE ITS DIVIDEND PFIZER DROPPED TWO AND ONE QUARTER TO FIFTY NINE AND THREE EIGHTHS AFTER THE COMPANY SAID SOME FORECASTS OF ITS NINETEEN NINETY FOUR EARNINGS COULD BE TOO HIGH THE NEW YORK DRUG MAKER SAID IT IS COMFORTABLE WITH ANALYSTS' PROJECTIONS OF BETWEEN FOUR DOLLARS AND TEN CENTS AND FOUR DOLLARS AND TWENTY FIVE CENTS A SHARE FOR THIS YEAR BUT SAID A FORECAST AT THE TOP OF THE RANGE MAY BE QUOTE SOMEWHAT OPTIMISTIC QUOTE SHARES OF SEMICONDUCTOR PRODUCERS RALLIED ON OPTIMISM ABOUT THE LEVEL OF BUSINESS IN THE INDUSTRY MOTOROLA ADDED FOUR TO ONE HUNDRED AND ONE QUARTER TEXAS INSTRUMENTS GAINED ONE AND SEVEN EIGHTHS TO SEVENTY THREE AND SEVEN EIGHTHS NATIONAL SEMICONDUCTOR WAS UP ONE AND ONE HALF TO NINETEEN AND ONE EIGHTH AND ADVANCED MICRO DEVICES ROSE ONE AND FIVE EIGHTHS TO TWENTY TWO I. T. T. JUMPED TWO TO NINETY NINE AND FIVE EIGHTHS THE COMPANY WAS SAID TO BE THE WINNING BIDDER FOR ITALY'S CIGA COMPANY A LUXURY HOTEL CHAIN WITH AN OFFER OF BETWEEN FIVE HUNDRED MILLION DOLLARS AND FIVE HUNDRED FIFTY MILLION DOLLARS A SPOKESMAN FOR NEW YORK BASED I. T. T. DECLINED COMMENT ON THE TALK KROGER ADDED TWO AND THREE EIGHTHS TO TWENTY THREE AND THREE EIGHTHS EXCLUDING CHARGES THE CINCINNATI SUPERMARKET OPERATOR REPORTED FOURTH QUARTER EARNINGS OF SEVENTY NINE CENTS A SHARE UP FROM SEVENTY FOUR CENTS A YEAR EARLIER SHARES OF SAFEWAY ANOTHER SUPERMARKET COMPANY JUMPED ONE AND ONE QUARTER TO TWENTY ONE AND THREE EIGHTHS WITHOUT RESTRUCTURING CHARGES THE OAKLAND CALIFORNIA CONCERN HAD FOURTH QUARTER PROFIT OF FORTY FIVE CENTS A SHARE UP FROM THIRTY ONE CENTS A YEAR EARLIER ALUMINUM COMPANY OF AMERICA ADDED ONE AND ONE QUARTER TO SEVENTY NINE AND THREE EIGHTHS AFTER RALLYING TWO MONDAY THE PITTSBURGH COMPANY SAID IT WILL SLASH ONE HUNDRED THOUSAND METRIC TONS OF ANNUAL ALUMINUM PRODUCTION OR ABOUT EIGHT PERCENT OF ITS DOMESTIC CAPACITY FINGERHUT COMPANIES INCREASED TWO AND THREE EIGHTHS TO TWENTY EIGHT AND SEVEN EIGHTHS THE MINNETONKA MINNESOTA COMPANY AGREED TO JOINTLY DEVELOP HOME SHOPPING PROGRAMMING WITH CABLE TELEVISION OPERATOR M. T. V. NETWORKS A VIACOM UNIT YOU'VE GOT SOMETHING OF A BATTLE GOING ON BETWEEN THOSE WHO ARE LOOKING TO LOCK IN RECENT PROFITS AND THOSE LOOKING FOR BARGAINS AFTER FRIDAY'S DECLINE SAID GAIL DUDACK MARKET STRATEGIST AT S. G. WARBURG AND COMPANY THE NET EFFECT OF THAT ACTION WAS LITTLE CHANGE IN STOCK PRICES DESPITE THE MIXED TONE YESTERDAY MS. DUDACK SAID SHE IS CONCERNED THAT STOCKS COULD TUMBLE OVER THE NEXT SIX WEEKS A MOVE ABOVE SIX POINT FIVE PERCENT IN THE THIRTY YEAR BOND YIELD COMBINED WITH SIGNS THAT THE FLOW OF MONEY INTO MUTUAL FUNDS IS EASING COULD SEND THE DOW JONES INDUSTRIAL AVERAGE BACK TO THE THREE THOUSAND SIX HUNDRED LEVEL SHE SAID BUT PETER CARDILLO A SENIOR VICE PRESIDENT AT WESTFALIA INVESTMENTS SAID THE WORRIES ABOUT INTEREST RATES ARE UNWARRANTED HE DOESN'T THINK THE FEDERAL RESERVE'S MOVE ON FRIDAY WAS LARGE ENOUGH TO STANCH THE FLOW OF CASH INTO FUNDS AND HE EXPECTS THE MARKET TO RESUME ITS CLIMB AS SOON AS NEXT WEEK SOME PEOPLE MAY SEE THE TRANSMEDIA EXECUTIVE SAVINGS CARD AS AN UNOFFICIAL INVITATION TO BEND THE RULES FOR AN ANNUAL FEE OF FIFTY DOLLARS THESE CHARGE CARDS DISTRIBUTED MOSTLY IN THE NEW YORK CITY AREA OFFER HOLDERS TWENTY FIVE PERCENT DISCOUNTS ON MEALS AT MORE THAN ONE THOUSAND RESTAURANTS BUT FOR THOSE WILLING TO TAKE A CHANCE WITH THEIR EMPLOYERS OR THE INTERNAL REVENUE SERVICE THERE'S ANOTHER ADVANTAGE THE RESTAURANT RECEIPT WHICH IS COMMONLY SUBMITTED TO SUPPORT EXPENSE ACCOUNT CLAIMS OR TAX DEDUCTIONS SHOWS THE FULL RETAIL PRICE OF THE MEAL THE REAL BILL THE ONE THAT REFLECTS THE TWENTY FIVE PERCENT DISCOUNT COMES LATER TO THE CARD HOLDER'S HOME AS PART OF HIS OR HER REGULAR MONTHLY CREDIT CARD STATEMENT QUOTE WE MAKE NO BONES ABOUT IT YOU COULD BE REIMBURSED FOR MORE THAN YOU PAID SAYS MELVIN CHASEN CHAIRMAN OF TRANSMEDIA NETWORK INCORPORATED THE FLORIDA BASED COMPANY THAT OFFERS THE CARDS MR. CHASEN SAYS HE ISN'T ADVOCATING EXPENSE ACCOUNT FRAUD THAT'S BETWEEN YOU AND YOUR COMPANY HE SAYS I WOULD PERSONALLY BE HESITANT ABOUT DOING IT UNLESS THE COMPANY DOESN'T CARE BESIDES HE ARGUES SOME SAY THE DISCOUNT IS SIMILAR TO FREQUENT FLYER MILES THAT MANY TRAVELING BUSINESS PEOPLE GET TO KEEP EVEN THOUGH THEIR COMPANIES PAID FOR THE TICKET THE OTHER SCHOOL OF THOUGHT HE CONCEDES IS THAT IT'S CHEATING TRANSMEDIA NETWORK MAKES ITS MONEY BY ACTING LIKE A BANK FOR RESTAURANTS IT ADVANCES THEM MONEY NOW IN EXCHANGE FOR DOUBLE THAT AMOUNT IN FOOD AND DRINK CREDITS LATER TRANSMEDIA IN TURN PASSES ALONG HALF OF THE DISCOUNT TWENTY FIVE PERCENT OFF THE MENU PRICES TO CARD MEMBERS AND EARNS A PROFIT FROM THE REMAINDER ALTHOUGH RESTAURANTS SEEM TO BE GETTING THE SHORT END OF THE STICK A SURPRISING NUMBER OF THEM OF ALL TYPES HAVE SIGNED UP WITH TRANSMEDIA RESTAURATEURS SAY THEY GET A NEEDED INFLUX OF MONEY AND CUSTOMERS FROM THE DEAL IF ALL GOES ACCORDING TO PLAN TRANSMEDIA MAKES MONEY THE RESTAURANTS GET NEW BUSINESS AND THE CUSTOMERS GET A CHEAPER MEAL RECENTLY THE NEW YORK TIMES COMPANY JOINED THE TRANSMEDIA PLAN OFFERING A CO BRANDED TRANSMEDIA CARD CALLED THE TRANSMEDIA TIMESCARD TO SUBSCRIBERS WHO PREPAY A SIX MONTH SEVEN DAY A WEEK SUBSCRIPTION AT THE UNDISCOUNTED PRICE THE NEWSPAPER'S AIM IS TO REDUCE OVERDUE SUBSCRIPTION PAYMENTS CUT DOWN ON SUBSCRIBER ATTRITION AND SUBSCRIPTION DISCOUNTING IN A LETTER TO SUBSCRIBERS CHARLES E. SHELTON THE NEWSPAPER'S VICE PRESIDENT OF CIRCULATION TELLS POTENTIAL CARD MEMBERS WHAT'S IN IT FOR THEM JUST PRESENT YOUR TRANSMEDIA TIMESCARD WHEN YOU GET YOUR CHECK AS YOU WOULD ANY OTHER CHARGE CARD YOUR CHARGE SLIP DISCREETLY SHOWS FULL MENU PRICES AND ANY TAX JUST ADD YOUR NORMAL TIP AND SIGN LATER ON THE TOTAL APPEARS ON THE VISA MASTERCARD OR DISCOVER ACCOUNT YOU'VE PRE SPECIFIED MINUS YOUR TWENTY FIVE PERCENT CREDIT ON THE FOOD AND BEVERAGE PORTION OF YOUR BILL QUOTE MR. SHELTON COULDN'T BE REACHED FOR ELABORATION THERE CERTAINLY IS AN OPPORTUNITY FOR FRAUD USING THE TRANSMEDIA TIMESCARD ACKNOWLEDGES DANIEL COHEN THE TIMES'S GROUP DIRECTOR FOR PROMOTION BUT TIMES EMPLOYEES WHO USE THEIR OWN TRANSMEDIA TIMESCARDS OR REGULAR TRANSMEDIA CARDS FOR BUSINESS PURPOSES HAD BETTER BE ABOVE BOARD WHEN SUBMITTING EXPENSES OTHER COMPANIES HAVE GONE SO FAR AS TO FORBID THE USE OF PERSONAL CREDIT CARDS FOR BUSINESS EXPENSES THE INTERNAL REVENUE SERVICE HOWEVER IS A LITTLE MORE LAISSEZ FAIRE THE FACT THAT THE CARD MAY BE ABUSED DOESN'T GENERATE ABUSE SAYS AN I. R. S. SPOKESMAN HE WARNS HOWEVER IF SOMEONE USED THE FACE AMOUNT RATHER THAN THE REAL TRANSACTION COST THAT COULD BE A PROBLEM RESTAURATEURS WHO ACCEPT THE CARD ARE UNDER NO ILLUSIONS ABOUT WHAT HAPPENS I SUSPECT THERE IS AN AWFUL LOT OF UNTRUTHFUL REPORTING SAYS JEANELLE MYERS THE MANAGER OF MANHATTAN'S BROOME STREET BAR AND GRILL THE BANK OF ENGLAND APPARENTLY SEEKING TO BOLSTER BUSINESS CONFIDENCE CUT ITS BASE LENDING RATE BY ONE FOURTH POINT TO FIVE POINT TWO FIVE PERCENT AMID PREDICTIONS THAT ANOTHER SMALL CUT MAY FOLLOW THE CENTRAL BANK SAID BETTER THAN EXPECTED INFLATION PROJECTIONS LED TO THE CUT SPEAKING AT A CONFERENCE IN PARIS BRITISH CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE INDICATED THAT A FURTHER CUT OF ONE FOURTH POINT MAY FOLLOW ASSERTING THAT THE GOVERNMENT IS QUOTE SET ON A COURSE OF RESTRAINED INFLATION QUOTE THE MOVE SEEMED TIMED TO GAIN POLITICAL MILEAGE FOR THE RULING CONSERVATIVE PARTY WHICH IS RAISING TAXES AND WANTS TO ENSURE THAT THE U. K.'S RECOVERY CONTINUES HOWEVER A ONE FOURTH POINT RATE CUT WILL PROVIDE LITTLE BENEFIT FOR CONSUMERS ECONOMISTS SAID IT MAY EVEN DEPRESS SAVINGS IF DEPOSITS ARE EARNING LESS INTEREST IT'S DIFFICULT TO SEE WHAT INSPIRED THIS CUT SAID PETER WARBURTON CHIEF ECONOMIST AT ROBERT FLEMING SECURITIES HOWEVER THE REDUCTION SHOULD MAKE IT EASIER FOR COMPANIES TO RAISE CAPITAL MR. WARBURTON ADDED AND PROVIDES BUSINESSES A PSYCHOLOGICAL BOOST STILL LONDON STOCKS REACTED LITTLE IF AT ALL TO THE RATE CUT THE BANK'S DECISION ALSO SENT A SIGNAL TO INTERNATIONAL INVESTORS THAT THE U. K.'S RATES AREN'T GOING TO FOLLOW THOSE IN THE U. S. WHERE THE FEDERAL RESERVE BANK INCREASED THE FEDERAL FUNDS RATE BY ONE FOURTH POINT TO THREE POINT TWO FIVE PERCENT LAST WEEK ROILING WORLD MARKETS THE LAST BRITISH CUT WAS IN NOVEMBER WHEN THE BASE RATE WAS LOWERED TO FIVE POINT FIVE PERCENT FROM SIX PERCENT DESPITE MR. CLARKE'S OPTIMISM ECONOMISTS TAKE A DIMMER VIEW OF THE RECOVERY'S STRENGTH CERTAIN INDICATORS INCLUDING MONETARY GROWTH SIGNAL THAT THE RECOVERY IS SLOWING AND THAT INFLATION IS AS LIKELY TO RISE AS TO DECLINE IN COMING MONTHS ACCORDING TO CHRIS DILLOW AN ECONOMIST AT NOMURA RESEARCH INSTITUTE HERE MR. DILLOW SAID HE BELIEVES THE TAX INCREASES PLANNED FOR APRIL WILL HURT THE RECOVERY THE GOVERNMENT INSISTS THEY WON'T ASSERTING INCOMES WILL RISE AS THE ECONOMY STRENGTHENS BRITAIN'S OVERALL INFLATION RATE IN DECEMBER WAS ONE POINT NINE PERCENT WITH AN UNDERLYING RATE OF TWO POINT SEVEN PERCENT AFTER TAKING OUT THE EFFECT OF LOWER MORTGAGE INTEREST PAYMENTS AT A NEWS CONFERENCE BANK OF ENGLAND OFFICIALS PROJECTED INFLATION WOULD STABILIZE AT TWO PERCENT TO THREE PERCENT AFTER THE FIRST HALF OF THIS YEAR EXCLUDING MORTGAGE INTEREST PAYMENTS AND THE IMPACT OF HIGHER INDIRECT TAXES ECONOMISTS SEE A MUCH GLOOMIER INFLATION PICTURE MR. DILLOW SAYS UNDERLYING INFLATION EXCLUDING MORTGAGE PAYMENTS COULD GROW TO ABOUT FOUR POINT FIVE PERCENT BY YEAR'S END MR. WARBURTON SEES INFLATION HOVERING AROUND THREE POINT TWO FIVE PERCENT BY YEAR'S END AND EXPECTS GENERAL ECONOMIC GROWTH OF ONLY ONE POINT EIGHT PERCENT COMPARED WITH THE GOVERNMENT'S PROJECTION OF TWO POINT FIVE PERCENT ONE COULD ARGUE THAT THIS RATE CUT SHOULD HAVE BEEN DEEPER AND COME MUCH SOONER MR. WARBURTON SAID THE CANADIAN GOVERNMENT IN A BID TO STAMP OUT RAMPANT CIGARETTE SMUGGLING ROLLED BACK TOBACCO TAXES AND IMPOSED A SURTAX ON TOBACCO MANUFACTURERS' PROFITS THE TAX CUT WAS OPPOSED BY ANTISMOKING GROUPS THAT HAVE URGED THE GOVERNMENT TO HOLD OFF ON TAX MOVES UNTIL THE U. S. CONGRESS VOTES ON THE CLINTON ADMINISTRATION'S PROPOSED SEVENTY FIVE CENT TAX INCREASE IN CIGARETTE PRICES HIGHER U. S. CIGARETTE TAXES WOULD MAKE SMUGGLING LESS PROFITABLE CIGARETTE SMUGGLING HAS SURGED RECENTLY BECAUSE OF THE HEAVY CANADIAN TAXES THE TOBACCO INDUSTRY ESTIMATED THAT ABOUT THIRTY PERCENT OF ALL CIGARETTES SMOKED IN CANADA ARE SMUGGLED THE CONTRABAND MARKET IS ESTIMATED TO BE AS HIGH AS SIXTY FIVE PERCENT IN QUEBEC THE CANADIAN GOVERNMENT SAID EFFECTIVE IMMEDIATELY IT WILL REDUCE FEDERAL TOBACCO TAXES BY FIVE CANADIAN DOLLARS THREE U. S. DOLLARS AND SEVENTY TWO CENTS ON A CARTON OF TWO HUNDRED CIGARETTES AND MATCH ANY REDUCTION IN PROVINCIAL TAXES BY AS MUCH AS TEN CANADIAN DOLLARS A CARTON THE COMBINED REDUCTIONS WOULD LOWER CIGARETTE PRICES TO AS LOW AS TWENTY THREE CANADIAN DOLLARS A CARTON FROM ABOUT FORTY SEVEN CANADIAN DOLLARS ILLEGAL CIGARETTES NOW SELL FOR ABOUT TWENTY CANADIAN DOLLARS TO TWENTY TWO CANADIAN DOLLARS A CARTON ONLY QUEBEC AND NEW BRUNSWICK PROVINCES SAID THEY WILL PROCEED WITH PROVINCIAL TOBACCO TAX REDUCTIONS ONTARIO SAID IT ISN'T PLANNING ANY IMMEDIATE ACTION THE FEDERAL GOVERNMENT SAID ITS SURTAX ON TOBACCO MAKERS' PROFITS WILL INCREASE THE FEDERAL TAX RATE PAID BY CIGARETTE MAKERS TO THIRTY PERCENT FROM TWENTY ONE PERCENT FOR THREE YEARS THE RISE IS EXPECTED TO GENERATE ABOUT TWO HUNDRED MILLION CANADIAN DOLLARS IN REVENUE THAT WILL BE USED TO FUND AN ANTISMOKING CAMPAIGN QUEBEC ALSO INTRODUCED A FIFTY PERCENT SURTAX ON PROVINCIAL INCOME TAX PAID BY TOBACCO MAKERS JACQUES KAVAFIAN AN ANALYST AT MONTREAL SECURITIES FIRM LEVESQUE BEAUBIEN GEOFFRION INCORPORATED ESTIMATED THE NEW LEVIES WOULD REDUCE IMASCO LIMITED'S NINETEEN NINETY FOUR EARNINGS TO THREE CANADIAN DOLLARS AND FIFTY CENTS A SHARE FROM A PROJECTED FOUR CANADIAN DOLLARS IMASCO CONTROLS IMPERIAL TOBACCO LIMITED CANADA'S LARGEST CIGARETTE MANUFACTURER THE OTHER MAJOR CANADIAN TOBACCO COMPANIES ARE R. J. R. MACDONALD INCORPORATED A SUBSIDIARY OF R. J. R. NABISCO HOLDINGS CORPORATION AND ROTHMANS BENSON AND HEDGES INCORPORATED WHICH IS JOINTLY OWNED BY ROTHMANS INCORPORATED AND PHILIP MORRIS COMPANIES IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY IMASCO FELL TWO CANADIAN DOLLARS AND FIFTY CENTS TO THIRTY NINE CANADIAN DOLLARS AND SEVENTY FIVE CENTS AND ROTHMANS FELL TWO CANADIAN DOLLARS TO NINETY EIGHT CANADIAN DOLLARS THE CANADIAN GOVERNMENT SAID IT ALSO INTENDS TO IMPOSE AN EIGHT CANADIAN DOLLAR A CARTON EXPORT TAX ON SHIPMENTS OF CANADIAN CIGARETTES TO THE U. S. IN ORDER TO MAKE THEM LESS ATTRACTIVE TO SMUGGLERS IT ALSO ANNOUNCED TOUGHER ENFORCEMENT OF ANTISMUGGLING LAWS AND MEASURES TO RAISE THE LEGAL AGE FOR PURCHASING CIGARETTES TO EIGHTEEN FROM SIXTEEN THE CONTRABAND CIGARETTES ARE MAINLY A CANADIAN MADE PRODUCT THAT IS EXPORTED DUTY FREE TO THE U. S. AND THEN REROUTED ILLEGALLY TO CANADA CANADIAN EXPORTS TOTALED SEVENTEEN POINT SEVEN BILLION CIGARETTES LAST YEAR UP SEVENTY SEVEN PERCENT FROM NINETEEN NINETY TWO CANADIAN ANTISMOKING GROUPS SAID THE TAX ROLLBACKS WOULD ENCOURAGE SMOKING ESPECIALLY AMONG YOUNG PEOPLE AND LEAD TO AN ADDITIONAL TWO HUNDRED FIFTY THOUSAND SMOKING RELATED DEATHS CANADA'S FEDERAL AND PROVINCIAL GOVERNMENTS HAVE SAID ILLEGAL CIGARETTE SALES HAVE CAUSED HEAVY TAX LOSSES FOR THEM THE TWO LEVELS OF GOVERNMENT LOST A COMBINED TWO BILLION CANADIAN DOLLARS LAST YEAR TO SMUGGLING CHRISTOPHER J. CHIPELLO IN MONTREAL CONTRIBUTED TO THIS ARTICLE A SURPRISE CUT IN BRITISH INTEREST RATES YESTERDAY SHARPLY DENTED RECENT STERLING BULLISHNESS AND DRAGGED DOWN OTHER EUROPEAN CURRENCIES IT ALSO HELPED PROPEL THE DOLLAR TO A TWENTY NINE MONTH HIGH AGAINST THE MARK THE BANK OF ENGLAND ANNOUNCED A CUT IN ITS BASE LENDING RATE TO FIVE POINT TWO FIVE PERCENT FROM FIVE POINT FIVE OH PERCENT WHICH SENT THE POUND SPIRALING DOWNWARD AGAINST THE MARK AND THE DOLLAR TRADERS SAID THE MOVE WAS UNEXPECTED BECAUSE THE U. K. ECONOMY IS ALREADY RECOVERING STRONGLY PROMPTING FEARS OF GROWING INFLATIONARY PRESSURES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN SIX FOUR OH MARKS UP FROM ONE POINT SEVEN FIVE NINE OH MARKS LATE MONDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED EIGHT POINT SEVEN FIVE YEN UP MARGINALLY FROM ONE HUNDRED EIGHT POINT SEVEN OH YEN STERLING WAS TRADING AT ONE POINT FOUR SIX SIX FIVE DOLLARS OFF SHARPLY FROM ONE POINT FOUR EIGHT TWO FIVE DOLLARS ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED EIGHT POINT FOUR FIVE YEN AND AT ONE POINT SEVEN SIX THREE OH MARKS FOLLOWING THE RATE CUT ANNOUNCEMENT THE POUND FELL MORE THAN TWO CENTS TO AN INTRADAY LOW OF ONE POINT FOUR SIX FIVE FOUR DOLLARS A LEVEL NOT SEEN SINCE NOVEMBER TENTH LATE IN NEW YORK THE POUND ALSO TRADED AT TWO POINT FIVE EIGHT SIX TWO MARKS DOWN SHARPLY FROM TWO POINT SIX OH SEVEN SEVEN MARKS LATE MONDAY TRADERS SAID THE DOLLAR WAS THE MAIN BENEFICIARY OF THE BRITISH RATE CUT WITH INVESTORS SEEKING REFUGE OUTSIDE OF ECONOMICALLY DEPRESSED EUROPE AND MOVING INTO THE U. S. WHERE SHORT TERM INTEREST RATES CLIMBED ON THE FEDERAL RESERVE'S TIGHTENING OF CREDIT POLICY LAST WEEK THE U. K. RATE CUT ANNOUNCEMENT WAS INITIALLY GREETED AS A POLITICAL MOVE TO HELP STRENGTHEN THE U. K. ECONOMY PRIOR TO INTRODUCTION OF UNPOPULAR TAX INCREASES IN APRIL QUOTE SPECULATION WAS THAT THEY THE BRITISH ARE DOING IT TO HURT THE CURRENCY IN ORDER TO HELP THEIR EXPORTERS QUOTE SAID LIZBETH GOLDBERG ASSISTANT VICE PRESIDENT AT BAYERISCHE HYPOTHEKEN UND WECHSELBANK A. G. IN NEW YORK TRADERS SAID THE BRITISH GOVERMENT PROBABLY WANTS TO KEEP THE POUND IN CHECK SO THAT BRITISH EXPORTERS REMAIN COMPETITIVE MS. GOLDBERG SAID THE BANK OF ENGLAND'S ACTION SHOULD BE SEEN AS A MOVE AGAINST THE MARK BECAUSE STERLING WAS TOO STRONG FOR THEIR TASTE U. K. CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE SAID YESTERDAY THAT HE DECIDED ON A RATE CUT BECAUSE U. K. INFLATION REMAINS SUBDUED ANALYSTS ALSO NOTED THAT A QUARTER POINT REDUCTION IN BASE RATES WAS RELATIVELY CAUTIOUS THE BRITISH CENTRAL BANK HAS TENDED TO MOVE ITS KEY RATES IN HALF POINT INCREMENTS THE MARK MEANWHILE LOST GROUND AGAINST THE DOLLAR ON CONTINUED POOR ECONOMIC DATA AND THREATS OF A LABOR STRIKE GERMAN UNEMPLOYMENT TOPPED FOUR MILLION IN JANUARY INCREASING BY THREE HUNDRED FORTY THOUSAND FROM DECEMBER THE FEDERAL LABOR OFFICE ANNOUNCED ALSO LEADERS OF GERMAN'S I. G. METALL METAL WORKERS UNION YESTERDAY SET A FEBRUARY TWENTY FIRST DEADLINE FOR REACHING A SETTLEMENT IN THEIR ARDUOUS WAGE NEGOTIATIONS TALKS YESTERDAY WERE DESCRIBED AS FROSTY WITH THE GERMAN ECONOMIC PICTURE BLEAK THE DOLLAR REACHED AN INTRADAY HIGH OF ONE POINT SEVEN SIX EIGHT SIX MARKS A NEW HIGH FOR NINETEEN NINETY FOUR AND A LEVEL LAST SEEN AUGUST TWENTY FIRST NINETEEN NINETY ONE TWO DAYS AFTER THE ATTEMPTED COUP AGAINST FORMER SOVIET PRESIDENT MIKHAIL S. GORBACHEV TRADERS NOTED TOO THAT THE BUNDESBANK'S DECISION TO LEAVE FOURTEEN DAY REPOS ITS MAIN INSTRUMENT FOR INFLUENCING THE MONEY MARKET UNCHANGED AT A FIXED RATE OF SIX PERCENT LEFT THE IMPRESSION GERMANY'S CENTRAL BANK WASN'T PREPARED TO CUT ITS KEY LOMBARD AND DISCOUNT RATES ANYTIME SOON THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CHIQUITA BRANDS INTERNATIONAL INCORPORATED ONE HUNDRED SEVENTY FIVE MILLION DOLLARS OF SENIOR NOTES DUE MARCH FIRST TWO THOUSAND FOUR PRICED AT PAR TO YIELD NINE POINT ONE TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE IS RATED SINGLE B. ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND DOUBLE B. MINUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED CONSOLIDATED EDISON COMPANY OF NEW YORK INCORPORATED ONE HUNDRED FIFTY MILLION DOLLARS OF DEBENTURES DUE FEBRUARY FIFTEENTH TWO THOUSAND TWENTY NINE PRICED AS SEVEN POINT ONE TWO FIVES AT NINETY EIGHT POINT NINE FOUR FIVE TO YIELD SEVEN POINT TWO OH EIGHT PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR TEN YEARS WERE PRICED AT A SPREAD OF SIXTY SEVEN BASIS POINTS ABOVE TREASURYS RATED DOUBLE A THREE BY MOODY'S AND SINGLE A PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY FEDERAL HOME LOAN MORTGAGE CORPORATION ONE HUNDRED FIFTY MILLION DOLLARS OF STEPUP NOTES DUE FEBRUARY FIFTEENTH NINETEEN NINETY NINE PRICED AT PAR TO YIELD FIVE POINT OH EIGHT PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE COUPON STEPS UP TO SIX PERCENT FEBRUARY FIFTEENTH NINETEEN NINETY SIX THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF SIXTY SIX BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED PAINEWEBBER GROUP INCORPORATED TWO HUNDRED MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND FOURTEEN PRICED AS SEVEN POINT SIX TWO FIVES AT NINETY NINE POINT FIVE NINE FOUR TO YIELD SEVEN POINT SIX SIX FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF ONE HUNDRED TWELVE POINT FIVE BASIS POINTS ABOVE TREASURYS RATED SINGLE A THREE BY MOODY'S AND TRIPLE B. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INCORPORATED FEDERAL MOGUL CORPORATION FIVE MILLION COMMON SHARES PRICED AT THIRTY FOUR POINT THREE SEVEN FIVE DOLLARS EACH THROUGH UNDERWRITERS LED BY C. S. FIRST BOSTON INCORPORATED AND DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION IN THE U. S. ACCORDING TO THE COMPANY INTERNATIONAL POST GROUP INCORPORATED INITIAL OFFERING OF TWO POINT SIX MILLION COMMON SHARES PRICED AT ELEVEN DOLLARS EACH THROUGH UNDERWRITERS LED BY FURMAN SELZ INCORPORATED AND FIRST ALBANY CORPORATION LEVEL ONE COMMUNICATIONS INCORPORATED TWO POINT EIGHT MILLION COMMON SHARES PRICED AT TWENTY ONE DOLLARS AND SEVENTY FIVE CENTS EACH THROUGH UNDERWRITERS LED BY ALEXANDER BROWN AND SONS INCORPORATED TATHAM OFFSHORE INCORPORATED INITIAL OFFERING OF FIVE MILLION COMMON SHARES PRICED AT TEN DOLLARS EACH THROUGH UNDERWRITERS LED BY BEAR STEARS AND COMPANY AND KIDDER PEABODY AND COMPANY AMLI RESIDENTIAL PROPERTIES INCORPORATED INITIAL OFFERING OF EIGHT POINT NINE MILLION COMMON SHARES PRICED AT TWENTY DOLLARS AND FIFTY CENTS EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY DADE COUNTY FLORIDA SCHOOL DISTRICT ONE HUNDRED FIFTY MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR SCHOOL IMPROVEMENT BONDS APPARENTLY WON BY A SMITH BARNEY SHEARSON INCORPORATED GROUP YIELDS FOR REOFFERED BONDS RANGE FROM TWO POINT NINE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT THREE FIVE PERCENT IN TWO THOUSAND THIRTEEN AND TWO THOUSAND FOURTEEN THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY ONE HUNDRED NINETY MILLION DOLLARS OF MENTAL HEALTH SERVICES FACILITIES IMPROVEMENT REVENUE BONDS PRICED BY A LAZARD FRERES AND COMPANY GROUP YIELDS RANGE FROM THREE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT SEVEN SIX PERCENT IN TWO THOUSAND TWENTY THREE MOODY'S RATED THE BONDS B. A. A. ONE AND S. AND P. ASSIGNED A TRIPLE B. PLUS RATING OHIO ONE HUNDRED TWENTY MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR INFRASTRUCTURE IMPROVEMENT AND REFUNDING GENERAL OBLIGATION BONDS PRICED BY A BEAR STEARNS AND COMPANY GROUP YIELDS RANGE FROM TWO POINT FOUR PERCENT IN AUGUST NINETEEN NINETY FOUR TO FIVE POINT TWO PERCENT IN TWO THOUSAND TWELVE AND TWO THOUSAND THIRTEEN MOODY'S AND S. AND P. RATED THE BONDS DOUBLE A ORANGE COUNTY CALIFORNIA LOCAL TRANSPORTATION AUTHORITY TWO HUNDRED MILLION DOLLARS OF SALES TAX REVENUE BONDS PRICED BY A LEHMAN BROTHERS INCORPORATED GROUP INCLUDED ARE ONE HUNDRED FOURTEEN POINT EIGHT MILLION DOLLARS OF BONDS PRICED TO YIELD FROM TWO POINT EIGHT FIVE PERCENT IN NINETEEN NINETY FIVE TO FOUR POINT NINE FIVE PERCENT IN TWO THOUSAND SEVEN THE EIGHTY FIVE POINT TWO MILLION DOLLARS OF INVERSE FLOATING RATE NOTES AREN'T FORMALLY REOFFERED THEY HAVE FINAL MATURITIES IN NINETEEN NINETY NINE TWO THOUSAND SIX AND TWO THOUSAND EIGHT TO ELEVEN ALL OF THE SECURITIES ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE COMPANY AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. FEDERAL HOME LOAN MORTGAGE CORPORATION THREE HUNDRED MILLION DOLLARS OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY AND COMPANY THE OFFERING SERIES ONE THOUSAND SIX HUNDRED NINETY EIGHT IS BACKED BY THE AGENCY'S FIFTEEN YEAR SIX PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SIX POINT SIX PERCENT AND WEIGHTED AVERAGE MATURITY OF ONE HUNDRED SEVENTY EIGHT MONTHS ABBEY NATIONAL TREASURY SERVICES P. L. C. U. K. PARENT ONE BILLION DOLLARS OF FLOATING RATE EURONOTES DUE MARCH EIGHTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT SEVEN ONE VIA GOLDMAN SACHS INTERNATIONAL LIMITED PAYABLE QUARTERLY AT ZERO POINT ZERO SIX TWO FIVE POINT BELOW THREE MONTH DOLLAR LONDON INTERBANK OFFERED RATE GUARANTOR ABBEY NATIONAL P. L. C. FEES ZERO POINT ONE FIVE AUSTRALIAN INDUSTRY DEVELOPMENT CORPORATION AUSTRALIAN AGENCY ONE HUNDRED FIFTY MILLION AUSTRALIAN DOLLARS OF SIX POINT FIVE PERCENT EUROBONDS DUE MARCH THIRTIETH TWO THOUSAND FOUR AT ISSUE PRICE NINETY NINE POINT SIX VIA BARCLAYS DE ZOETE WEDD SECURITIES LIMITED BONDS YIELD SIX POINT EIGHT SIX PERCENT AFTER FEES OF TWO POINT ONE TWO FIVE GUARANTOR AUSTRALIA BANCO NACIONAL S. A. BRAZIL ONE HUNDRED MILLION MARKS OF EIGHT POINT FIVE PERCENT EUROBONDS DUE MARCH SEVENTEENTH NINETEEN NINETY SEVEN VIA COMMERZBANK A. G. ISSUE PRICE ONE HUNDRED POINT FOUR BONDS YIELD MARGIN OF THREE HUNDRED SEVENTY FIVE BASIS POINTS OVER COMPARABLE GERMAN BUND AT NINETY EIGHT POINT SEVEN SEVEN CO MANAGERS' BREAK EVEN PRICE FEES ONE POINT EIGHT LESS ZERO POINT ONE SEVEN FOR LEAD MANAGER B. H. F. FINANCE NETHERLANDS B. V. GERMAN PARENT TWO HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE MARCH EIGHTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT THREE TWO FIVE VIA MERRILL LYNCH INTERNATIONAL LIMITED PAYABLE FLAT AT THREE MONTH DOLLAR LIBOR GUARANTOR BERLINER HANDELS UND FRANKFURTER BANK FEES ZERO POINT TWO DAIKIN MANUFACTURING COMPANY JAPAN SEVENTY MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE FEBRUARY TWENTY FOURTH NINETEEN NINETY EIGHT WITH EQUITY PURCHASE WARRANTS CARRYING ZERO POINT ONE TWO FIVE PERCENT COUPON AT PAR VIA NOMURA BANK SWITZERLAND LIMITED WARRANTS EXERCISABLE FROM MARCH TENTH TO FEBRUARY TENTH NINETEEN NINETY EIGHT TERMS FIXED FEBRUARY FIFTEENTH FEES ONE POINT SIX TWO FIVE DE BEERS CENTENARY FINANCE P. L. C. SWISS PARENT ONE HUNDRED FIFTY MILLION OF EIGHT POINT TWO FIVE PERCENT REGISTERED LOAN STOCK DUE MARCH THIRTY FIRST TWO THOUSAND NINE AT ISSUE PRICE NINETY EIGHT POINT NINE SEVEN THREE VIA HAMBROS BANK LIMITED NOTES YIELD EIGHT POINT THREE SIX EIGHT PERCENT A SPREAD OF ONE HUNDRED SIXTY FIVE BASIS POINTS OVER NINE PERCENT U. K. GILT OF TWO THOUSAND EIGHT GUARANTOR DE BEERS CENTENARY A. G. FEES ZERO POINT SEVEN FIVE PAYABLE SEMIANNUALLY GRUPO MEXICANO DE DESARROLLO MEXICO TWO HUNDRED MILLION DOLLARS OF EIGHT POINT TWO FIVE PERCENT EUROBONDS DUE FEBRUARY SEVENTEENTH TWO THOUSAND ONE AT PAR VIA BEAR STEARNS INTERNATIONAL LIMITED PRICED TO YIELD MARGIN OF TWO HUNDRED FIFTY FIVE BASIS POINTS OVER COMPARABLE U. S. TREASURY GUARANTOR DESARROLLO DE INFRASTRUCTURA OBRAS Y. PROYECTOS DESARROLLO URBANO INTEGRAL AND DESARROLLO INDUSTRIAL LATINO AMERICANO FEES UNDISCLOSED PAYABLE SEMIANNUALLY IKB FINANCE B. V. GERMAN PARENT ONE HUNDRED MILLION OF SIX POINT THREE SEVEN FIVE PERCENT EUROBONDS DUE DECEMBER SIXTH NINETEEN NINETY NINE VIA BARING BROTHERS AND COMPANY ISSUE AND REOFFER PRICE NINETY NINE POINT EIGHT SEVEN FOUR TO YIELD SIX POINT THREE NINE PERCENT A MARGIN OF THIRTY SEVEN BASIS POINTS OVER COMPARABLE GILT GUARANTOR IKB DEUTSCHE INDUSTRIEBANK A. G. FEES ZERO POINT THREE INTERNATIONALE NEDERLANDEN VERZEKERINGEN NETHERLANDS ONE HUNDRED MILLION SWISS FRANCS TWO PERCENT PUBLIC BONDS DUE MARCH TWENTY FOURTH TWO THOUSAND PRICED AT PAR CARRYING WARRANTS ON INTERNATIONALE NEDERLANDEN GROEP VIA SWISS BANK CORPORATION NOTES EXERCISABLE FROM MARCH THIRTY FIRST TO MARCH FIRST NINETEEN NINETY SIX TO PURCHASE I. N. G. SHARES AT ZERO PREMIUM TO AVERAGE CLOSING SHARE PRICE YESTERDAY AND TODAY FEES TWO POINT TWO FIVE NATIONAL AUSTRALIA BANK LIMITED AUSTRALIA TWO HUNDRED FIFTY MILLION AUSTRALIAN DOLLARS OF SIX POINT TWO FIVE PERCENT EUROBONDS DUE MARCH TWENTY NINTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED POINT THREE FIVE VIA HAMBROS BANK LIMITED BONDS YIELD SIX POINT SIX TWO PERCENT AT NINETY EIGHT POINT FOUR SEVEN FIVE CO MANAGERS' BREAK EVEN PRICE A MARGIN OF TWENTY NINE BASIS POINTS OVER COMPARABLE AUSTRALIAN GOVERNMENT NOTE FEES TWO NIPPON COMSYS CORPORATION JAPAN ONE HUNDRED MILLION DOLLARS OF ONE POINT ONE TWO FIVE PERCENT EUROBONDS WITH EQUITY WARRANTS DUE MARCH THIRD NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA NIKKO EUROPE P. L. C. WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM MARCH SEVENTEENTH TO FEBRUARY TWENTY FOURTH NINETEEN NINETY EIGHT TERMS FIXED FEBRUARY FIFTEENTH TUESDAY'S CLOSING SHARE PRICE ONE THOUSAND FIVE HUNDRED YEN FEES TWO POINT TWO FIVE LESS ZERO POINT ONE FIVE FOR LEAD MANAGER NIHON KOGYO COMPANY JAPAN FIFTY FIVE MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE ZERO POINT SEVEN FIVE PERCENT NOTES DUE MARCH THIRTY FIRST NINETEEN NINETY EIGHT AT PAR VIA NEW JAPAN SECURITIES NOTES CONVERTIBLE FROM MARCH FOURTEENTH TO MARCH TWENTIETH NINETEEN NINETY EIGHT AT EXPECTED TWO POINT FIVE PERCENT PREMIUM TERMS FIXED MONDAY FEES ONE SWEDEN SOVEREIGN THREE HUNDRED MILLION FRENCH FRANCS OF EURONOTES DUE MARCH FIRST NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE PAR VIA BANQUE PARIBAS COUPON SIX POINT ONE TWO FIVE PERCENT FIRST YEAR THEREAFTER COUPON AT DIFFERENCE BETWEEN THIRTY ONE POINT SEVEN PERCENT AND FIVE TIMES FIVE YEAR FRENCH FRANC SWAP RATE COUPON FIXED FEBRUARY TWENTY SEVENTH NINETEEN NINETY FIVE FEES UNDISCLOSED WHAT A TIME FOR FRANCE TO PUT SIX BILLION DOLLARS OF STOCK IN SOCIETE NATIONALE ELF AQUITAINE ITS NATIONAL OIL COMPANY ON THE BLOCK ELF'S EARNINGS PLUMMETED EIGHTY TWO PERCENT IN NINETEEN NINETY THREE SINCE NINETEEN EIGHTY NINE THE COMPANY'S DEBT AS A PERCENTAGE OF ITS EQUITY HAS MORE THAN TRIPLED TO ALMOST FIFTY PERCENT FROM THIRTEEN PERCENT AND WITH OIL PRICES CLOSE TO FIVE YEAR LOWS ELF'S FINANCIAL OUTLOOK FOR THIS YEAR ISN'T GOOD EITHER BUT NONE OF THAT HAS STOPPED THE FRENCH GOVERNMENT FROM GOING AHEAD WITH ITS PLAN TO SLASH ITS FIFTY POINT SEVEN PERCENT CONTROLLING INTEREST IN THE OIL GIANT TO THIRTEEN PERCENT THE AMBITIOUS QUOTE GLOBAL QUOTE OFFERING INVOLVES SIMULTANEOUSLY SELLING MORE THAN EIGHTY EIGHT MILLION OF ELF'S TWO HUNDRED FIFTY SEVEN MILLION SHARES OUTSTANDING IN SEVERAL INTERNATIONAL MARKETS AT ONCE BUT SHOULD INVESTORS BE BUYING WHAT THE FRENCH GOVERNMENT IS SELLING OR FOR THAT MATTER SHOULD THEY BE INTERESTED IN THE ELF SHARES THAT ALREADY TRADE ON PUBLIC EXCHANGES SUCH AS ITS NINETEEN MILLION AMERICAN DEPOSITARY RECEIPTS TRADING ON THE NEW YORK STOCK EXCHANGE ELF A. D. R.S EACH OF WHICH IS EQUAL TO ONE HALF SHARE OF ELF COMMON CLOSED YESTERDAY AT THIRTY SIX AND ONE EIGHTH DOWN ONE EIGHTH ON ABOVE AVERAGE VOLUME THE ANSWER TO BOTH OF THE ABOVE QUESTIONS IS PROBABLY YES ESPECIALLY IF YOU BELIEVE THAT PHILIPPE JAFFRE ELF'S CHAIRMAN SINCE AUGUST WILL SUCCEED IN HIS PLAN TO OVERHAUL THE COMPANY TO BE SURE GETTING EXPERT OPINION ABOUT ELF'S PROSPECTS IS A COMPLICATED MATTER RIGHT NOW WALL STREET CURRENTLY ABOUNDS IN ELF EXPERTS A BYPRODUCT OF ALL THE BONING UP ANALYSTS HAVE DONE TO COMPETE IN THE RITUAL BEAUTY CONTEST OF SELECTING INVESTMENT BANKING FIRMS TO MANAGE THE HUGE UNDERWRITING BUT THOSE EXPERTS WHO ARE PARTICIPATING IN THE DEAL AND THERE ARE A LOT OF THEM ARE NOW INHIBITED BY SECURITIES AND EXCHANGE COMMISSION REGULATIONS FROM TALKING PUBLICLY WHILE THE OFFERING IS UNDER WAY EVEN SO BY CONSULTING ANALYSTS NOT UNDER THE BAN AND ALSO BY LOOKING AT DATA THAT ANALYSTS AND PORTFOLIO MANAGERS PUT OUT PRIOR TO BEING SILENCED INVESTORS GET A PICTURE OF ELF AS A COMPANY IN NEED OF REPAIR RELATIVE TO INTERNATIONAL RIVALS ELF IS A LATE COMER TO RESTRUCTURING COST CUTTING AND DEBT REDUCTION ANALYSTS SAY ELF IS WHERE U. S. OIL COMPANIES WERE TEN YEARS AGO SAYS BRYAN JACOBOSKI ANALYST FOR PAINEWEBBER INCORPORATED IN NEW YORK ELF'S FORMER CHAIRMAN LOIK LE FLOCH PRIGENT GOT THE COMPANY INTO A LOT OF BAD DEALS SAYS BERNIE PICCHI ANALYST FOR KIDDER PEABODY AND COMPANY IN NEW YORK THE COMPANY PAID TOO MUCH FOR SOME EXPLORATION AND PRODUCTION ASSETS SUCH AS ITS NINETEEN NINETY ONE PURCHASE OF OCCIDENTAL PETROLEUM COMPANY'S INTEREST IN THE NORTH SEA AND ELF'S DECISION TO COMMIT ITSELF TO THE CONSTRUCTION OF A COMPLETELY NEW REFINERY IN WHAT WAS FORMERLY EAST GERMANY AT A COST OF MORE THAN ONE POINT FIVE BILLION DOLLARS JUST ISN'T GOOD ECONOMICS BUT MR. JAFFRE'S ARRIVAL AT THE HELM HAS ENCOURAGED SOME INVESTORS TO OVERLOOK ELF'S BUMPY THREE YEAR RUN AT RECENT ROAD SHOWS IN EUROPE AND THE U. S. MR. JAFFRE DIDN'T PULL PUNCHES ABOUT ELF'S DISCOURAGING PROSPECTS FOR NINETEEN NINETY FOUR BUT MR. JAFFRE DID INSIST AT THOSE MEETINGS THAT EARNINGS WILL IMPROVE IF SLOWLY OVER THE NEXT FEW YEARS MR. JAFFRE ALSO ASSURED POTENTIAL INVESTORS THAT HE HAS COMMITTED ELF TO A PROGRAM OF COST CUTTING AND ASSET SALES SOME INVESTORS SEE ELF AS ALREADY RIPE FOR AN UPTURN IT SHOULD BENEFIT FROM HIGHER OIL DEMAND AS EUROPEAN ECONOMIES LED BY FRANCE BEGIN TO PICK UP THIS YEAR THESE INVESTORS SAY ELF'S BOTTOM LINE SHOULD ALSO RECEIVE A BOOST AS OIL FIELDS IT'S BEEN DEVELOPING COME ON STREAM LIFTING OIL OUTPUT BY TWENTY PERCENT TO ONE MILLION BARRELS DAILY POSSIBLY AS EARLY AS NEXT YEAR THAT PRODUCTION GROWTH SHOULD OFFSET THE IMPACT OF THE LACKLUSTER OIL PRICES ELF OFFICIALS HAVE SAID VINCENT BAZI OF BARING SECURITIES IN PARIS SAYS THE COMPANY IS UNDERVALUED BASED UPON ITS FOUR POINT OH PRICE TO CASH FLOW MULTIPLE COMPARED WITH AVERAGE MULTIPLES OF SIX TO SEVEN FOR OTHER EUROPEAN OIL STOCKS DATA FROM SWISS BANK CORPORATION SHOW ELF IS SIMILARLY CHEAP RELATIVE TO U. S. OIL COMPANIES ELF IS A GOOD LONG TERM INVESTMENT SAYS DOUGLAS TERRESON MANAGER OF PUTNAM ENERGY RESOURCES TRUST WHICH IS BASED IN BOSTON AND OWNS ELF SHARES HE AND OTHERS WHO FOLLOW THE STOCK RECOMMEND THAT ELF SHARES BE HELD FOR EIGHTEEN TO TWENTY FOUR MONTHS ABOUT THE LENGTH OF TIME THEY THINK IT WILL TAKE FOR MR. JAFFRE TO MAKE AN IMPACT ON ELF MEANWHILE RELIEVING THE STIGMA OF GOVERNMENT CONTROL SHOULD HELP BUOY THE COMPANY'S STOCK PRICE AS WELL ANALYSTS SAY THE GOVERNMENT IS SELLING ITS ELF STAKE IN A SERIES OF TRANCHES WITH SPECIFIC PORTIONS ALLOCATED INSTITUTIONS EMPLOYEES AND INDIVIDUALS A CORE GROUP OF MOSTLY FRENCH COMPANIES HAVE PLEDGED TO HOLD THEIR STAKE IN ELF FOR SEVERAL YEARS AS A TYPE OF POISON PILL DEFENSE AGAINST POTENTIAL TAKEOVERS SHARES SOLD TO FRENCH INDIVIDUAL INVESTORS UNDER THE OFFERING WERE PRICED LATE LAST WEEK AT THREE HUNDRED EIGHTY FIVE FRENCH FRANCS A TEN POINT SIX PERCENT DISCOUNT TO THE CLOSING SHARE PRICE LAST WEDNESDAY OF FOUR HUNDRED THIRTY POINT SEVEN FRANCS ON THE PARIS BOURSE PRICES FOR INSTITUTIONAL AND CORE GROUP PURCHASES WON'T BE SET UNTIL MONDAY BUT ARE EXPECTED TO BE HIGHER THAN THAT NUMBER A NEW ANALYSIS OF KEY FACETS OF THE CLINTON HEALTH PLAN SHOWS THAT IT WOULD LOWER HEALTH CARE COSTS FOR MANUFACTURERS WHILE LIFTING THEM FOR CONSTRUCTION COMPANIES RETAILERS AND OTHER SERVICE SECTOR EMPLOYERS THE SOON TO BE PUBLISHED ANALYSIS BY TWO BROOKINGS INSTITUTION ECONOMISTS LOOKS AT THE IMPACT OF THREE CHANGES SIMILAR TO PROVISIONS IN THE WHITE HOUSE PLAN A REQUIREMENT THAT EMPLOYERS PAY EIGHTY PERCENT OF THE PREMIUM FOR EVERY WORKER THE ESTABLISHMENT OF A STANDARD BENEFIT PACKAGE AND WHAT'S KNOWN AS QUOTE COMMUNITY RATING QUOTE OR SETTING A SINGLE PREMIUM FOR EVERY EMPLOYER REGARDLESS OF THE AGE AND HEALTH OF ITS WORK FORCE THE ANALYSIS IS SUMMARIZED IN THE CONGRESSIONAL BUDGET OFFICE REPORT ON THE CLINTON HEALTH PLAN INDUSTRIES THAT ALREADY PROVIDE INSURANCE TO ALL THEIR WORKERS OR THAT HAVE PARTICULARLY HIGH HEALTH COSTS WOULD BENEFIT FROM THESE CHANGES ECONOMISTS HENRY AARON AND BARRY BOSWORTH CONCLUDE MANUFACTURERS OF AUTOS APPLIANCES AND OTHER LONG LASTING GOODS FOR INSTANCE WOULD SEE THEIR COST OF PROVIDING HEALTH INSURANCE FALL THIRTY FIVE PERCENT OR ONE THOUSAND THREE HUNDRED FORTY NINE DOLLARS A WORKER IN CONTRAST RETAILERS WHO CURRENTLY DON'T PROVIDE INSURANCE FOR MANY OF THEIR EMPLOYEES WOULD SEE THEIR COSTS CLIMB ONE HUNDRED SIXTY FIVE PERCENT OR BY ONE THOUSAND THREE HUNDRED THREE DOLLARS A WORKER IN SOME CASES THE DIFFERENCES WOULD BE EVEN GREATER COAL MINING COMPANIES WITH THEIR AGING WORK FORCES AND HAZARDOUS WORKING CONDITIONS NOW SPEND NINE THOUSAND NINE HUNDRED EIGHTY TWO DOLLARS A WORKER MR. AARON SAID REQUIRING ALL COMPANIES TO PAY THE SAME PREMIUM AND INSURE ALL THEIR WORKERS WOULD CUT THAT BY ABOUT SIX THOUSAND DOLLARS BECAUSE COMPANIES WITH YOUNGER WORK FORCES AND SAFER WORKING CONDITIONS EFFECTIVELY WOULD HAVE TO SHARE SOME OF THAT BURDEN EMPLOYERS' HEALTH CARE COSTS VARY GREATLY DEPENDING ON THE AGE HEALTH SEX AND LOCATION OF THEIR EMPLOYEES AND THEIR FAMILIES MR. CLINTON WOULD CHANGE THAT BY SETTING THE SAME PREMIUM FOR ALL EMPLOYERS IN A GIVEN REGION THE BROOKINGS ANALYSIS APPROXIMATES THAT SITUATION BY ASSUMING THERE WOULD BE A SINGLE PREMIUM FOR THE WHOLE COUNTRY THE NEWS IN THIS FOR ME IS THAT THE REAL FINANCIAL CHANGE IN ANY MAJOR HEALTH CARE REFORM IS THE MOVE TO COMMUNITY RATING MR. AARON SAID ONCE YOU'VE DONE THAT YOU'VE GOTTEN A VERY LARGE DOSE OF THE SHIFT OF COSTS THAT YOU'LL GET FROM ANY OF THE APPROACHES SEVERAL OF THE ALTERNATIVES TO THE CLINTON PLAN ALSO WOULD REQUIRE COMMUNITY RATING THE BROOKINGS ECONOMISTS ESTIMATE THAT THE AVERAGE PRIVATE EMPLOYER NOW PAYS TWO THOUSAND SEVENTEEN DOLLARS A WORKER OR SEVEN POINT TWO PERCENT OF TOTAL WAGES TOWARD WORKERS' HEALTH CARE COSTS WITH COMMUNITY RATING AND A MANDATE ON ALL EMPLOYERS TO PROVIDE A STANDARD BENEFIT PACKAGE THAT WOULD RISE TO TWO THOUSAND TWO HUNDRED FIFTY THREE DOLLARS A WORKER OR EIGHT PERCENT OF TOTAL WAGES THE BROOKINGS ANALYSIS DOESN'T REFLECT ALL THE FEATURES OF THE CLINTON PROPOSAL IT IGNORES FOR INSTANCE SUBSIDIES THAT MR. CLINTON WOULD PROVIDE TO CERTAIN SMALL EMPLOYERS WITH LOW WAGE WORKERS IT ALSO DOESN'T CONSIDER THE EFFECT OF COST CONTROLS IN THE CLINTON PLAN MR. AARON NOTED THAT THE PAPER DOESN'T ADDRESS THE SUBSTANTIAL DIFFERENCES AMONG COMPANIES WITHIN A GIVEN INDUSTRY THE ANALYSIS WHICH IS BASED ON COMMERCE DEPARTMENT DATA IS TO BE PUBLISHED IN A FORTHCOMING ISSUE OF THE BROOKINGS PAPERS ON ECONOMIC ACTIVITY FLEET FINANCIAL GROUP INCORPORATED PLANS A THREE YEAR EIGHT POINT FIVE BILLION DOLLAR LOAN COMMITMENT TO LOW AND MODERATE INCOME BORROWERS AND MINORITY OWNED BUSINESSES ACCORDING TO PEOPLE FAMILIAR WITH THE INITIATIVE COMMUNITY ACTIVISTS SAID THE PROGRAM EXPECTED TO BE UNVEILED TOMORROW IS ONE OF THE LARGEST BANK INITIATIVES AIMED AT SUCH BORROWERS AND REPRESENTS AN EFFORT BY FLEET TO MITIGATE FEDERAL REGULATORY PRESSURE ON FAIR LENDING CONCERNS FLEET WHICH IS BASED IN PROVIDENCE R. I. HAS SETTLED STATE PROBES IN GEORGIA AND MASSACHUSETTS ALLEGING UNFAIR LENDING PRACTICES IN MINORITY AND LOW INCOME COMMUNITIES AND IS EXPECTED SOON TO SEEK FEDERAL CLEARANCE FOR THE ACQUISITION OF STERLING BANCSHARES CORPORATION OF WALTHAM MASSACHUSETTS SUCH FEDERAL REVIEWS HAVE BEEN WIDELY USED BY CONSUMER GROUPS AND REGULATORS TO RAISE COMMUNITY LENDING CONCERNS PEOPLE FAMILIAR WITH THE INITIATIVE TO BE CALLED FLEET IN CITY SAID IT PRIMARILY WILL MAKE MORTGAGES AVAILABLE FOR LOW INCOME PEOPLE AND ALSO WILL LOOSEN LENDING CRITERIA FOR MINORITY OWNED AND WOMEN OWNED BUSINESSES ALTHOUGH THE PROGRAM WILL INCLUDE PAST COMMITMENTS MADE BY FLEET TO LOW INCOME AND MINORITY LENDING ONE BANK INSIDER SAID IT REPRESENTED A QUOTE VERY SIGNIFICANT QUOTE INCREASE IN SUCH PLEDGES A FLEET SPOKESMAN DECLINED TO COMMENT ANDREW FRISHKOFF HOUSING DIRECTOR FOR THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW IN PHILADELPHIA SAID FLEET'S PROGRAM IS ONE OF THE LARGEST EVER WHILE OTHER BANKS ALSO HAVE COMMITTED FUNDS A LOT OF OTHER AGREEMENTS WERE SMALLER AND FOCUSED PRIMARILY ON HOUSING OR BUSINESS NOT BOTH HE SAID IT WASN'T CLEAR HOW MANY LOW INCOME MORTGAGE AND MINORITY BUSINESS LOANS THE COMPANY CURRENTLY HAS OUTSTANDING ALTHOUGH FLEET EMPLOYEES SAID THE INITIATIVE WILL INCLUDE SOME LOAN PROGRAMS ALREADY CREATED THE MAJORITY OF THE EIGHT POINT FIVE BILLION DOLLARS WILL BE ADDITIONAL MONEY THEY SAID THE INITIATIVE COMES AT A TIME FEDERAL REGULATORS HAVE SHOWN A NEW INSISTENCE ON LENDING TO LOW INCOME AND MINORITY BORROWERS LAST NOVEMBER THE FEDERAL RESERVE BOARD REJECTED AN APPLICATION BY SHAWMUT NATIONAL CORPORATION ONE OF FLEET'S BIGGEST COMPETITORS TO ACQUIRE NEW DARTMOUTH BANK OF MANCHESTER N. H. CITING SHAWMUT'S POOR RECORD IN SUPPLYING FAIR LENDING DATA SHAWMUT HARTFORD CONNECTICUT LATER SETTLED CHARGES OF LENDING DISCRIMINATION WITH THE JUSTICE DEPARTMENT FLEET HAS RECEIVED ITS SHARE OF LENDING COMPLAINTS THE COMPANY RECENTLY AGREED TO MAKE ABOUT THIRTY MILLION DOLLARS IN REFUNDS AND OTHER CONCESSIONS AND SEVENTY MILLION DOLLARS IN LOANS TO PREVENT THE GEORGIA ATTORNEY GENERAL FROM FILING UNFAIR LENDING CHARGES AGAINST FLEET'S ATLANTA BASED CONSUMER FINANCE UNIT COMMUNITY ACTIVISTS SAY FLEET'S SETTLEMENT IN GEORGIA AND THE NEW LENDING PLAN STEM FROM FEAR THAT REGULATORS MAY NOT OTHERWISE APPROVE ITS PROPOSED ACQUISITION OF STERLING AND OTHER POSSIBLE ACQUISITIONS IN THE FUTURE FLEET ANNOUNCED THE PURCHASE OF STERLING IN OCTOBER BUT HAS YET TO SUBMIT AN APPLICATION FOR FEDERAL APPROVAL SHAWMUT SAW THAT WHEN THE FED REJECTED ITS PURCHASE THE FED WENT AFTER ITS JUGULAR SAID BRUCE MARKS EXECUTIVE DIRECTOR OF THE UNION NEIGHBORHOOD ASSISTANCE CORPORATION A BOSTON ADVOCACY GROUP THAT HAS BEEN CRITICAL OF FLEET I THINK SHAWMUT FLEET AND ALL THE OTHER INSTITUTIONS OUT THERE ARE NERVOUS N. C. N. B. CORPORATION AND C. AND S. SLASH SOVRAN CORPORATION ANNOUNCED A SIMILAR LENDING PROGRAM IN NINETEEN NINETY ONE THE BANKS WHICH LATER MERGED COMMITTED TEN BILLION DOLLARS IN LOANS FOR COMMUNITY DEVELOPMENT OVER TEN YEARS IN PREPARING TO LAUNCH ITS INITIATIVE FLEET SUBMITTED A LETTER TO THE U. S. TREASURY DEPARTMENT A TREASURY SPOKESWOMAN SAID WHILE TREASURY APPROVAL OR INVOLVEMENT ISN'T REQUIRED FOR SUCH A PROGRAM FLEET MAY HAVE MADE THE NOTIFICATION BECAUSE IT'S CLEAR THE ADMINISTRATION HAS BEEN ACTIVELY ENCOURAGING BANKS TO TAKE THEIR COMMUNITY DEVELOPMENT RESPONSIBILITIES SERIOUSLY THE SPOKESWOMAN SAID THE ECONOMIC AND POLITICAL FORCES THAT ARE TRANSFORMING U. S. HEALTH CARE ARE ALSO BUFFETING ONE OF THE HOSPITAL INDUSTRY'S BEDROCK INVESTMENTS TAX EXEMPT BONDS MANAGED CARE STRATEGIES USED BY EMPLOYERS TO CONTROL HEALTH COSTS ARE APPLYING A TOURNIQUET TO INPATIENT HOSPITAL REVENUE EVEN WHILE LEGISLATIVE HEALTH REFORM PROPOSALS IN WASHINGTON TARGET EXPENDITURES FOR HOSPITAL CARE AS AN IMPORTANT SOURCE OF SAVINGS THESE DEVELOPMENTS ARE RAISING NEW QUESTIONS ABOUT THE QUALITY OF THE ASSETS BEHIND SOME OF THE MORE THAN ONE HUNDRED FIFTEEN BILLION DOLLARS OF TAX EXEMPT HOSPITAL BONDS CURRENTLY HELD BY INVESTORS QUOTE WHETHER IT'S COMING OUT OF WASHINGTON OR HAPPENING IN THE PRIVATE SECTOR IT'S CHANGING THE VOLATILITY OF THE INDUSTRY QUOTE SAYS JOHN GOETZ OF MOODY'S INVESTORS SERVICE A RATER OF HOSPITAL BONDS THAT CREATES RISK IN AN INVESTOR'S MIND NO ONE PREDICTS THAT HOSPITAL BONDS ARE POISED FOR A RASH OF DEFAULTS ABOUT HALF THE HEALTH CARE BONDS ISSUED EACH YEAR ARE BACKED BY BOND INSURANCE OR OTHER CREDIT BOOSTERS AND A FLURRY OF HOSPITAL MERGERS AND ALLIANCES THAT ARE PART OF A HEALTH CARE INDUSTRY CONSOLIDATION MAY STRENGTHEN THE FINANCIAL POSITION OF PARTICIPANTS BY REDUCING INEFFICIENCIES OR COMPETITION NEVERTHELESS EXPERTS SAY THE CHANGING CLIMATE INCREASES RISKS FOR CURRENT BONDHOLDERS AT THE SAME TIME HOSPITALS ARE BEGINNING TO SEEK NEW CAPITAL TO TRANSFORM THEMSELVES INTO ORGANIZATIONS THAT CAN COMPETE IN THE FUTURE HEALTH CARE MARKET INVESTORS BOUGHT INTO A WAY OF DELIVERING AND FINANCING HEALTH CARE FOR THIRTY YEARS AND NOW WE ARE TRYING TO ABRUPTLY CHANGE DIRECTION SAYS CHRISTOPHER CONLEY SENIOR VICE PRESIDENT PUBLIC FINANCE AT LEHMAN BROTHERS AN UNDERWRITER OF MANY TYPES OF TAX EXEMPT BONDS THESE WORRIES HAVEN'T YET TRANSLATED INTO HIGHER INTEREST RATES FOR HOSPITAL BONDS MR. CONLEY SAYS BUT OUR CONCERN IS THAT IT COULD THE MORE TROUBLE YOU HAVE THE HIGHER THE RATES HOSPITAL BONDS TYPICALLY BEAR AN INTEREST RATE ONE QUARTER OF A PERCENTAGE POINT HIGHER THAN SIMILARLY RATED REVENUE BONDS FOR SAY MUNICIPAL SEWER PROJECTS HE SAID WHILE RATES AMONG HOSPITAL BONDS OF DIFFERENT RISK CAN VARY BY A FULL PERCENTAGE POINT OR MORE FOR YEARS THE COMBINATION OF TAX EXEMPT BONDS AND A FEDERAL MEDICARE REIMBURSEMENT POLICY THAT FAVORED DEBT FINANCED CAPITAL PROJECTS HAS FUELED A CONSTRUCTION AND TECHNOLOGY BOOM AT U. S. HOSPITALS PAYING FOR PROJECTS RANGING FROM CANCER CENTERS TO PARKING GARAGES INDIVIDUAL INVESTORS HAVE PUT UP MUCH OF THE CAPITAL SNAPPING UP BONDS ISSUED FOR THEIR LOCAL HOSPITALS THROUGH STATE AND MUNICIPAL FINANCING AUTHORITIES BUT ECONOMISTS HEALTH POLICY EXPERTS AND EMPLOYERS WHO PURCHASE HEALTH CARE THINK THIS HAS LED TO TOO MUCH OF A GOOD THING MANY MARKETS ARE BURDENED WITH AN OVERCAPACITY OF HOSPITAL BEDS AND MEDICAL TECHNOLOGY BIG DRIVERS OF EXCESSIVE HEALTH COSTS LARGE CUSTOMERS ARE DEMANDING NOT ONLY DISCOUNTS BUT MORE EFFICIENCY FROM HOSPITALS A MAJOR FACTOR BEHIND THE CONSOLIDATIONS IN THE HEALTH CARE SECTOR HOSPITAL CREDIT QUALITY HAS ALREADY ERODED IN RECENT YEARS REFLECTING THESE DEVELOPMENTS AND THE MEDICARE PROGRAM'S SWITCH A DECADE AGO TO PAYING HOSPITALS ON A FIXED RATE PER DIAGNOSIS FROM PAYING FEE FOR SERVICE IN NINETEEN NINETY TWO STANDARD AND POOR'S RATED FIFTY TWO PERCENT OF HOSPITAL BONDS AS A OR ABOVE DOWN FROM SEVENTY SEVEN PERCENT IN NINETEEN EIGHTY THREE SEVEN PERCENT OF BONDS WERE CONSIDERED BELOW INVESTMENT GRADE COMPARED WITH ONE PERCENT A DECADE AGO NOW GROWTH OF MANAGED CARE CONTRACTS AND EXPECTATIONS THAT HOSPITAL CARE INCREASINGLY WILL BE PAID IN ADVANCE IN SET MONTHLY RATES AND NOT BASED ON SERVICES PROVIDED WILL PUT EVEN MORE PRESSURE ON HOSPITAL REVENUES IF MANAGED CARE IS WILDLY SUCCESSFUL ABOUT HALF OF THE INPATIENT VOLUME WOULD FALL OUT OF THE HOSPITAL MARKETPLACE SAYS RICHARD CLARKE PRESIDENT OF THE HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION A CHICAGO BASED ORGANIZATION OF HOSPITAL FINANCE OFFICIALS MEANTIME PRESIDENT CLINTON'S HEALTH REFORM PLAN CALLS FOR STANCHING GROWTH IN MEDICARE EXPENDITURES AND FOR REDUCING PAYMENTS FOR CAPITAL RELATED COSTS FOR INPATIENT SERVICES TO HELP FINANCE COVERAGE FOR THE UNINSURED AND NEW BENEFITS FOR THE ELDERLY KENNETH RASKE PRESIDENT OF THE GREATER NEW YORK HOSPITAL ASSOCIATION ESTIMATES THAT THE PROPOSED CUTBACKS WOULD CHOP FOUR BILLION DOLLARS OF REVENUE FROM HIS MEMBERS OVER FIVE YEARS FOR INVESTORS ALL OF THIS MEANS A HOSPITAL'S FINANCIAL STRENGTH WILL DEPEND LESS ON ITS ABILITY TO FILL BEDS AND MORE ON THE QUALITY OF ITS MANAGEMENT ITS CONTROL OF OPERATING COSTS AND ITS SUCCESS IN NEGOTIATING CONTRACTS WITH MANAGED CARE COMPANIES AND OTHER LARGE PURCHASERS OF CARE SAYS STEVEN HARVEY PORTFOLIO MANAGER AT FIDELITY INVESTMENTS BOSTON FOR HOSPITALS THAT MEANS ADJUSTING TO THE GROWING CLOUT OF PURCHASERS MEMBERSHIP IS SOARING AT MANY LARGE HEALTH MAINTENANCE ORGANIZATIONS GIVING THEM INCREASING LEVERAGE IN NEGOTIATIONS WITH HOSPITALS THAT ARE PART OF THEIR DELIVERY NETWORKS AND MANY EMPLOYERS ARE POOLING THEIR PURCHASING POWER WITH THE SAME OBJECTIVES HOSPITALS COVET RELATIONSHIPS WITH LARGE CUSTOMERS BUT AN INSTITUTION COULD BECOME VULNERABLE TO A COUPLE OF BIG ACCOUNTS WHO COULD DASH ITS FORTUNES JUST BY TAKING THEIR BUSINESS NEXT DOOR EXPERTS SAY TO SURVIVE UNDER CHANGING CONDITIONS HOSPITALS NEED SIZE A DIVERSITY OF OUTPATIENT SERVICES TO COMPLEMENT INPATIENT CARE AND SOPHISTICATED INFORMATION SYSTEMS ALL OF THAT TAKES CAPITAL BLESSING HOSPITAL QUINCY ILLINOIS FOR INSTANCE LAST YEAR USED FIFTEEN POINT SIX MILLION DOLLARS OF A FORTY TWO MILLION DOLLAR BOND ISSUE TO ACQUIRE A RIVAL AND EARMARKED ANOTHER ELEVEN MILLION DOLLARS FOR RETROFITTING THE MERGED FACILITIES TO CONCENTRATE INPATIENT SERVICES AT ONE LOCATION AND OUTPATIENT AND LONG TERM CARE AT ANOTHER QUOTE WE ESTIMATE A TWENTY TWO MILLION DOLLAR SAVINGS OVER FIVE YEARS QUOTE SAYS JAMES WATERKOTTE CHIEF FINANCIAL OFFICER AT INOVA HEALTH SYSTEM SPRINGFIELD VIRGINIA OFFICIALS ARE USING TEN MILLION DOLLARS OF PROCEEDS FROM A RECENT SEVENTY MILLION DOLLAR BOND ISSUE TO REVAMP THEIR INFORMATION SYSTEMS WITH A GOAL OF COMPUTERIZING NOT JUST BILLING FUNCTIONS BUT PATIENT MEDICAL RECORDS AMONG OTHER THINGS SAYS RICHARD MAGENHEIMER CHIEF FINANCIAL OFFICER WE THINK THERE'S GOING TO BE A COMPETITIVE ADVANTAGE FOR ORGANIZATIONS LIKE OURS TO PROVIDE FEEDBACK OF OUTCOME DATA TO MANAGED CARE COMPANIES AND INSURERS INDUSTRY PARTICIPANTS SAY SUCH PROJECTS DEMONSTRATE THAT DESPITE A REDUCTION OF TRADITIONAL BRICKS AND MORTAR PROJECTS NOT FOR PROFIT HOSPITALS WILL CONTINUE TO NEED CAPITAL TO MEET NEW DEMANDS FROM THEIR CUSTOMERS AS WELL AS TO KEEP THEIR CURRENT FACILITIES UP TO DATE THEIR ONLY ACCESS TO EXTERNAL CAPITAL IS DEBT THEY CAN'T SELL SHARES SAYS ROBERT FULLER OF S. AND P. IF YOU DESTABILIZE THAT YOU MAY DO THINGS YOU DON'T INTEND TO DO ADDS THE GREATER NEW YORK'S MR. RASKE CAPITAL FORMATION IS A LITMUS TEST FOR HEALTH CARE REFORM IF THE INDUSTRY HAS DIFFICULTY FORMING CAPITAL TO REJUVENATE ITSELF THE LONG TERM MEASURE OF HEALTH REFORM IS AT RISK QUOTE THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND FIVE SIXTEENTHS PERCENT HIGH THREE AND ONE SIXTEENTH PERCENT LOW THREE AND ONE EIGHTH PERCENT NEAR CLOSING BID THREE AND THREE SIXTEENTHS PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT THREE THREE PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT THREE EIGHT PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT FOUR THREE PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT FOUR FIVE PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT FOUR EIGHT PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT FIVE TWO PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT SIX OH PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT FOUR ONE PERCENT THIRTY DAYS THREE POINT FOUR FIVE PERCENT SIXTY DAYS THREE POINT FOUR NINE PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT SIX NINE PERCENT ONE MONTH TWO POINT SEVEN THREE PERCENT TWO MONTHS TWO POINT SEVEN EIGHT PERCENT THREE MONTHS TWO POINT NINE TWO PERCENT SIX MONTHS THREE POINT TWO NINE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT THREE OH PERCENT ONE MONTH THREE POINT FOUR OH PERCENT THREE MONTHS THREE POINT FIVE FIVE PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT TWO NINE PERCENT THIRTY DAYS THREE POINT THREE FOUR PERCENT SIXTY DAYS THREE POINT THREE EIGHT PERCENT NINETY DAYS THREE POINT FOUR ONE PERCENT ONE HUNDRED TWENTY DAYS THREE POINT FOUR FIVE PERCENT ONE HUNDRED FIFTY DAYS THREE POINT FOUR EIGHT PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT ONE MONTH THREE AND ONE HALF PERCENT THREE AND THREE EIGHTHS PERCENT TWO MONTHS THREE AND NINE SIXTEENTHS PERCENT THREE AND SEVEN SIXTEENTHS PERCENT THREE MONTHS THREE AND NINE SIXTEENTHS PERCENT THREE AND SEVEN SIXTEENTHS PERCENT FOUR MONTHS THREE AND FIVE EIGHTHS PERCENT THREE AND ONE HALF PERCENT FIVE MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT THREE AND NINE SIXTEENTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND THREE EIGHTHS PERCENT ONE MONTH THREE AND NINE SIXTEENTHS PERCENT THREE MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT SIX MONTHS FOUR AND ONE SIXTEENTH PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT NINE OH PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY SEVENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT TWO FOUR PERCENT THIRTEEN WEEKS THREE POINT FOUR OH PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SEVEN POINT ONE TWO PERCENT SIXTY DAYS SEVEN POINT ONE SEVEN PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SEVEN POINT ONE ONE PERCENT SIXTY DAYS SEVEN POINT TWO ONE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT TWO FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN TWO PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS FEDERAL WILDLIFE REGULATORS HAVE DESIGNATED SIX POINT FOUR MILLION ACRES OF SOUTHWESTERN DESERT INCLUDING THE PROPOSED SITE OF A BITTERLY CONTESTED NUCLEAR WASTE DUMP IN CALIFORNIA AS CRITICAL HABITAT FOR THE DESERT TORTOISE THE ACTION BY THE U. S. FISH AND WILDLIFE SERVICE IS CERTAIN TO REVERBERATE IN THE DEBATE OVER CONFLICTS BETWEEN WILDLIFE AND COMMERCE WHICH IS INTENSIFYING AS CONGRESS TAKES UP REAUTHORIZATION OF THE NATION'S PRINCIPAL WILDLIFE PROTECTION LAW THE ENDANGERED SPECIES ACT THE AGENCY'S MOVE SETS ASIDE NEARLY AS MUCH LAND FOR DESERT TORTOISES AS THE GOVERNMENT DID FOR SPOTTED OWLS MOST OF THE LAND IS IN CALIFORNIA BUT THREE OTHER STATES ARE ALSO AFFECTED SOME EIGHTY PERCENT OF THE LAND IS FEDERALLY OWNED WITH THE REMAINDER OWNED BY STATES INDIAN TRIBES AND PRIVATE INTERESTS PROTECTED UNDER FEDERAL LAW THE TORTOISES HAVE BEEN IN STEADY DECLINE BECAUSE OF DISEASE AND HABITAT DESTRUCTION CAUSED BY MINING OFF ROAD VEHICLES AND OTHER HUMAN ENCROACHMENT ON THE DESERT MANY SCIENTISTS AGREE UNDER THE ENDANGERED SPECIES ACT HUMAN ACTIVITIES ON LAND DESIGNATED AS CRITICAL HABITAT FOR PROTECTED SPECIES CAN BE STRICTLY LIMITED THUS THE AGENCY'S MOVE CASTS FURTHER DOUBT OVER THE FUTURE OF THE LOW LEVEL NUCLEAR DUMP PROJECT KNOWN AS WARD VALLEY BUSINESS INTERESTS AND CALIFORNIA STATE OFFICIALS SAY THE FACILITY IS CRUCIAL TO THE HEALTH OF CALIFORNIA'S BURGEONING BIOTECH MEDICAL AND RESEARCH INDUSTRIES WHICH IN ADDITION TO MANY JOBS GENERATE MUCH LOW LEVEL NUCLEAR WASTE THE STATE HAS ISSUED A LICENSE TO U. S. ECOLOGY INCORPORATED TO BUILD AND OPERATE THE DUMP U. S. ECOLOGY OFFICIALS SAY THEY'VE INVESTED ABOUT FORTY MILLION DOLLARS TO DATE IN ENGINEERING AND ENVIRONMENTAL STUDIES AND OTHER PRECONSTRUCTION COSTS BUT ANTINUCLEAR ACTIVISTS AND ENVIRONMENTALISTS HAVE FOUGHT THE DUMP PROJECT FIERCELY FOR NEARLY TEN YEARS ASSERTING THAT IT THREATENS THE NEARBY COLORADO RIVER AS WELL AS DESERT ANIMALS SUCH AS THE TORTOISE MOREOVER WARD VALLEY IS ON FEDERAL LAND AND THE CLINTON ADMINISTRATION TO DATE HAS DECLINED TO TRANSFER THE LAND TO THE STATE A PREREQUISITE FOR DUMP CONSTRUCTION WHILE LAWSUITS CHALLENGING THE DUMP WEND THEIR WAY THROUGH THE COURTS ALTHOUGH THE CRITICAL HABITAT DESIGNATION THEORETICALLY DOESN'T DOOM THE WARD VALLEY PROJECT SINCE FEDERAL AGENCIES CAN PERMIT ACTIVITIES IN PRIME HABITAT AREAS UNDER CERTAIN CIRCUMSTANCES DUMP OPPONENTS WERE NONETHELESS JUBILANT QUOTE IT SHOULD BE THE FINAL BLOW AGAINST THIS ILL ADVISED PROJECT QUOTE SAID PHILIP KLANSKY CO COORDINATOR OF THE BAY AREA NUCLEAR WASTE COALITION BUT STEVE ROMANO A U. S. ECOLOGY VICE PRESIDENT SAID THE COMPANY THINKS IT CAN STILL BUILD THE DUMP WITHOUT HARMING TORTOISES IF THE CLINTON ADMINISTRATION TRANSFERS THE LAND TO THE STATE IF IT DOESN'T MR. ROMANO SAID OUR COMPANY WOULD HAVE LITTLE ALTERNATIVE BUT TO SUE TO RECOVER ITS INVESTMENT SO FAR IN THE PROJECT THE WARD VALLEY DEBATE IS PART OF A LARGER NATIONAL PROBLEM OF COPING WITH LOW LEVEL NUCLEAR LEFTOVERS IN THE NINETEEN EIGHTIES CONGRESS PASSED LAWS REQUIRING STATES TO HAVE LOW LEVEL DUMPS UP AND RUNNING BY NINETEEN NINETY THREE THAT PROCESS HAS MELTED DOWN PLAGUED BY DESIGN AND ENVIRONMENTAL PROBLEMS AND BESET BY ENVIRONMENTAL PROTESTS NOT A SINGLE NEW LOW LEVEL WASTE DUMP HAS BEEN BUILT HOW VULNERABLE IS THE I. R. S. TO BEING CHEATED BY SOPHISTICATED CROOKS MEMBERS OF A HOUSE WAYS AND MEANS SUBCOMMITTEE CHAIRED BY REPRESENTATIVE PICKLE D. TEXAS WILL RAISE THIS QUESTION WITH I. R. S. OFFICIALS AT A PUBLIC HEARING TOMORROW MORNING CONCERN HAS MOUNTED SINCE A REPORT ON GROWING TAXPAYER FRAUD WAS ISSUED LAST YEAR BY THE GENERAL ACCOUNTING OFFICE A CONGRESSIONAL WATCHDOG AGENCY SOME TAX EXPERTS FEAR THE I. R. S. IS ESPECIALLY VULNERABLE TO FRAUD FROM TAXPAYERS FILING ELECTRONICALLY THE I. R. S. HIRED AN OUTSIDER TO STUDY THE ISSUE BUT HASN'T RELEASED THE REPORT YET THE G. A. O. REPORT SAYS THE I. R. S. FOUND TWICE AS MANY RETURNS INVOLVING FRAUDULENT REFUND CLAIMS LAST YEAR AS THE PRIOR YEAR BUT IT IS UNCLEAR HOW MUCH OF THAT INCREASE CAME FROM MORE FRAUD AND HOW MUCH FROM IMPROVED MONITORING QUOTE WHAT DOES SEEM CLEAR IS THAT THE HARDER I. R. S. LOOKS THE MORE FRAUD IT FINDS QUOTE THE G. A. O. SAYS AT TOMORROW'S HEARING TWO MEN CONVICTED OF FILING FRAUDULENT TAX RETURNS WILL GIVE DETAILS OF WHAT THEY DID TRUSTING THE POST OFFICE TO DELIVER TAX RETURNS TO THE I. R. S. MAY BE RISKY WHAT HAPPENS IF POSTAL SERVICE GREMLINS DEVOUR AN IMPORTANT RETURN OR LETTER DON'T EXPECT MUCH I. R. S. SYMPATHY IF A DISPUTE LATER ARISES AND THE TAXPAYER HAS NO PROOF OF HAVING MAILED A RETURN OR CHECK ON TIME LAWYERS WARN THUS MANY PEOPLE ROUTINELY GET REGISTERED RETURN RECEIPTS BUT I. R. S. OFFICIALS SAY THAT SLOWS RETURN PROCESSING AND PROVES ONLY THAT THE TAXPAYER MAILED AN ENVELOPE NOT WHETHER ANYTHING WAS INSIDE SO TO BE EXTRA SAFE VALERIE PEARSALL ROBERTS A LAWYER AT WOOD WILLIAMS RAFALSKY AND HARRIS IN NEW YORK ADVISES ENCLOSING AN EXTRA COPY OF THE TAX RETURN OR LETTER ALONG WITH A COVER LETTER ASK THE I. R. S. TO STAMP THE EXTRA COPY AND RETURN IT IN YOUR STAMPED SELF ADDRESSED ENVELOPES I DO IT ALL THE TIME AND I'VE NEVER HAD ANY TROUBLE SHE SAYS ROBERT L. JOHNSON A NEW HAMPSHIRE ACCOUNTANT SUGGESTS WRITING THE RETURN RECEIPT NUMBER ON THE TAX RETURN OR LETTER AS IT IS BEING MAILED THOSE FORMS GENERALLY ARE AVAILABLE AT POSTAL COUNTERS COMEDY CENTRAL A FEDERAL APPEALS COURT JUDGE ROASTS THE I. R. S. FOR ITS BLOOPERS THIS CASE MAKES PLAIN THE PROPOSITION THAT KELLOGG DOES NOT HAVE A MONOPOLY ON FLAKES WRITES JUDGE IRVING L. GOLDBERG IN U. S. VERSUS WALTER KELLOGG TRUSTEE FOR WEST TEXAS MARKETING CORPORATION IN CHAPTER SEVEN BANKRUPTCY PROCEEDINGS INDEED IT IS KELLOGG'S OPPONENT THE UNITED STATES GOVERNMENT ACTING THROUGH THE INTERNAL REVENUE SERVICE I. R. S. WHICH HAS COMMITTED TWO SCOOPS OF ERRORS ALLOWING A CASE WHICH SHOULD HAVE BEEN A SNAP TO DISSOLVE INTO A SERIES OF CRACKLES AND POPS THE JUDGE CONTINUES IN THE SERIAL ANTICS OF THIS CASE THE GOVERNMENT HAS REPEATEDLY FAILED TO DETERMINE THE ACTUAL TAX REFUND OWED TO THE DEBTOR WEST TEXAS MARKETING CORPORATION AND HAS SUGAR FROSTED THE REFUND OVERPAYING BY A CONSIDERABLE AMOUNT BUT EVEN THOUGH THE GOVERNMENT MADE MANY MISTAKES THE JUDGE SAID CIVIL PROCEDURE RULES ALLOW CORRECTION OF CLERICAL ERRORS WITHOUT TIME LIMIT THUS THE COURT VACATED A LOWER COURT RULING AND ORDERED THE CASE TO BE REVIEWED AGAIN TALKING TURKEY A TREASURY OFFICIAL WILL ASK TURKEY ABOUT A RALSTON PURINA EXECUTIVE'S BEEF THE COMPANY COMPLAINED THAT A QUOTE SUBSTANTIAL PORTION QUOTE OF THE ANIMAL FEED INDUSTRY IN TURKEY ISN'T PAYING A VALUE ADDED TAX ON INGREDIENTS AND FINISHED PRODUCTS THE I. R. S. SEEKS FEES FOR TAXPAYER SERVICES ITS FISCAL NINETEEN NINETY FIVE BUDGET REQUEST CALLS FOR AN EIGHTEEN DOLLAR TO TWENTY DOLLAR CHARGE FOR PAYING TAXES IN INSTALLMENTS AND AN EIGHT DOLLAR CHARGE FOR A DIRECT DEPOSIT REFUND CONFIRMATION FEES FOR COPIES OF OLD RETURNS TWELVE DOLLARS UP FROM FOUR DOLLARS AND TWENTY FIVE CENTS BUDGETARY RESTRAINT CONGRESS'S JOINT TAX COMMITTEE NEEDS A SEVEN POINT FOUR PERCENT INCREASE IN ITS FISCAL NINETEEN NINETY FIVE BUDGET TO MORE THAN SIX POINT ONE MILLION DOLLARS SAYS HOUSE WAYS AND MEANS CHAIRMAN ROSTENKOWSKI D. ILLINOIS THAT INCLUDES PAY RAISES FOR ABOUT SEVENTY FIVE STAFFERS AS WELL AS EQUIPMENT AND SUPPLIES COMPANIES STRUGGLE TO FIGURE OUT HOW TO REACT TO A STARTLING I. R. S. DEFEAT A RECENT FEDERAL APPEALS COURT DECISION RAISES TRICKY QUESTIONS FOR MANY COMPANIES ALBERTSON'S A COMPANY BASED IN BOISE IDAHO AGREED TO DEFER PAY TO SEVERAL EXECUTIVES AND A DIRECTOR IT SAID PART OF THAT PAY REPRESENTED INTEREST AND DEDUCTED IT EACH YEAR EVEN THOUGH IT WON'T PAY IT FOR MANY YEARS THE APPEALS COURT REBUFFING THE I. R. S. SIDED WITH THE COMPANY SOME COMPANIES WITH SIMILAR PLANS NOW PLAN TO FILE FOR REFUNDS BUT OTHERS FEAR THAT WOULD ONLY BE ASKING FOR BIG TROUBLE FROM THE I. R. S. EVERYONE I'VE TALKED TO THINKS THE ALBERTSON'S DECISION IS WRONG SAYS PETER L. FABER OF THE LAW FIRM OF KAYE SCHOLER IT'S BAD LAW THE I. R. S. PROBABLY WILL ASK FOR A REHEARING IF THE ANSWER IS NO THE I. R. S. MAY CHALLENGE OTHER COMPANIES IN OTHER REGIONS HOPING EVENTUALLY TO TAKE THE ISSUE TO THE SUPREME COURT OR THE I. R. S. MIGHT TAX EXECUTIVES CURRENTLY ON THEIR DEFERRED INTEREST OR CONGRESS MIGHT CHANGE THE LAW LAWYERS URGE MOST CLIENTS TO TAKE NO ACTION UNTIL THE I. R. S. MAKES ITS NEXT MOVE BRIEFS THANKS FOR REMINDING US THE TAX FOUNDATION SAYS ALL THE MONEY THE AVERAGE U. S. TAXPAYER MAKES FOR TWO HOURS AND FORTY ONE MINUTES OF EACH WORKDAY GOES TO PAY FEDERAL STATE AND LOCAL TAXES NORA DALY A PAYROLL TAX ANALYST AT PACIFIC BELL IS THE NEW CHAIR OF THE I. R. S. COMMISSIONER'S ADVISORY GROUP AN INFLUENTIAL GROUP OF NON I. R. S. TAX EXPERTS WHO MAKE POLICY RECOMMENDATIONS TO THE I. R. S. PUBLISHERS OF SMALL NEWSPAPERS BURGLAR ALARM COMPANIES ON LINE COMPUTER SERVICES AND TELEPHONE EQUIPMENT MAKERS EXPRESSED CONCERNS ABOUT LEGISLATION TO LET THE BELL TELEPHONE COMPANIES ENTER NEW BUSINESS LINES ALTHOUGH THE GROUPS GENERALLY SUPPORT THE BILLS WHICH HOUSE LEADERS HAVE PUT ON A FAST TRACK EACH IS SEEKING CHANGES THAT WOULD HELP ITS BUSINESS ONE BILL A COMPROMISE WORKED OUT BY COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D. MICHIGAN AND JUDICIARY COMMITTEE CHAIRMAN JACK BROOKS D. TEXAS WOULD EVENTUALLY LET THE REGIONAL TELEPHONE COMPANIES PROVIDE LONG DISTANCE SERVICE AND MAKE PHONE EQUIPMENT A COMPANION MEASURE WOULD OPEN THE LOCAL PHONE BUSINESS TO COMPETITION AND LET PHONE COMPANIES INTO CABLE TELEVISION IN TESTIMONY YESTERDAY BEFORE THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE R. JACK FISHMAN PRESIDENT OF LAKEWAY PUBLISHERS INCORPORATED WHICH PUTS OUT THE CITIZEN TRIBUNE A TWENTY ONE THOUSAND CIRCULATION DAILY IN MORRISTOWN TENNESSEE WARNED THAT LEFT TO THEIR OWN DEVICES THE BELL COMPANIES COULD STIFLE RURAL COMPETITORS MR. FISHMAN TOLD LAWMAKERS THAT STATE REGULATORS APPROVED THE USE OF A THREE DIGIT NUMBER FIVE HUNDRED ELEVEN TO OFFER SOPHISTICATED INFORMATION SERVICES AT A MODEST FEE LAKEWAY FIGURED THAT IT WOULD DRAW ABOUT THREE THOUSAND CALLS A MONTH BUT SOUTH CENTRAL BELL A UNIT OF ATLANTA BASED BELLSOUTH CORPORATION PROPOSED CHARGING AN INITIAL TWENTY TWO THOUSAND DOLLARS PLUS AT LEAST TEN THOUSAND DOLLARS A MONTH CALLERS MR. FISHMAN COMPLAINED WOULD GET SOCKED FOR MORE THAN THREE DOLLARS A CALL WELL ABOVE PRICES CHARGED FOR A SIMILAR SERVICE IN SUBURBAN ATLANTA MR. FISHMAN WANTS CONGRESS TO BLOCK ANY PRICING DISPARITY BETWEEN RURAL AND URBAN AREAS A SOUTH CENTRAL BELL SPOKESWOMAN SAID THE PROPOSED TARIFF IS SUBSTANTIALLY LOWER THAN MR. FISHMAN CITED AND CALLERS QUOTE MIGHT PLACE TEN OR MORE CALLS A MONTH WITH A CHARGE OF ONLY THIRTY CENTS A CALL QUOTE BIGGER INFORMATION SERVICES COMPANIES ALSO EXPRESSED WORRIES THAT THE LEGISLATION'S DEFINITION OF ELECTRONIC PUBLISHING IS TOO NARROW AND THAT FUTURE TWO WAY SERVICES MIGHT ESCAPE REGULATION JAMES CULLEN BELL ATLANTIC CORPORATION'S PRESIDENT COUNTERED THAT THE BROOKS DINGELL DEFINITION STRIKES THE RIGHT BALANCE AND THAT SERVICES SUCH AS ELECTRONIC GAMES AND OTHER INTERACTIVE ENTERTAINMENT SHOULDN'T BE INCLUDED MEANWHILE STAN MARTIN EXECUTIVE DIRECTOR OF A BURGLAR ALARM TRADE ASSOCIATION TOLD LAWMAKERS THAT THE BROOKS DINGELL BILL'S SIX YEAR BAN ON THE BELLS ENTERING THE ALARM BUSINESS IS CRITICAL THE ALARM COMPANIES ALSO WANT THE BILL TO REQUIRE THE BELLS TO STOP OFFERING ANY ALARM SERVICE TELECOMMUNICATIONS EQUIPMENT MAKERS ALSO WANT CHANGES JOHN MAJOR CHAIRMAN OF THE TELECOMMUNICATIONS INDUSTRY ASSOCIATION AND A MOTOROLA INCORPORATED SENIOR VICE PRESIDENT TOLD PANEL MEMBERS THAT THE BELLS SHOULD BE ALLOWED INTO THE MANUFACTURING ARENA MORE SLOWLY THAN THE BILL ENVISIONS UNLESS THE BELLS FACE COMPETITION IN THE MARKET FOR LOCAL TELEPHONE SERVICE HE WARNED THEY RETAIN BOTH THE ABILITY AND THE INCENTIVE TO COMPETE UNFAIRLY AN ADDITIONAL THREE HUNDRED FORTY THOUSAND FIVE HUNDRED SIXTY NINE WORKERS JOINED GERMANY'S JOBLESS RANKS IN JANUARY RAISING THE TOTAL TO MORE THAN FOUR MILLION AMID THE LINGERING RECESSION THE GOVERNMENT ANNOUNCED THAT UNEMPLOYMENT IN WESTERN GERMANY ROSE TO TWO MILLION SEVEN HUNDRED THIRTY SIX THOUSAND SIXTY EIGHT WORKERS OR EIGHT POINT EIGHT PERCENT OF THE TOTAL CIVILIAN WORK FORCE FROM TWO MILLION FIVE HUNDRED THIRTEEN THOUSAND SEVEN HUNDRED ELEVEN IN DECEMBER WHEN THE JOBLESS RATE WAS EIGHT POINT ONE PERCENT IN EASTERN GERMANY ONE MILLION TWO HUNDRED NINETY THREE THOUSAND FOUR HUNDRED TWENTY THREE OR SEVENTEEN PERCENT OF THE PEOPLE WERE LISTED AS UNEMPLOYED UP FROM ONE MILLION ONE HUNDRED SEVENTY FIVE THOUSAND TWO HUNDRED ELEVEN OR FIFTEEN POINT FOUR PERCENT A RATE FOR ALL OF GERMANY WASN'T PROVIDED BUT ECONOMISTS PUT THE JANUARY FIGURE AT NEAR TEN PERCENT OR MORE WITH FOUR MILLION TWENTY NINE THOUSAND FOUR HUNDRED NINETY ONE OUT OF WORK WITH THE FOUR MILLION MARK BREACHED THE JOBS CRISIS AND ATTENDANT FEARS OF SOCIAL UNREST AND RISING CRIME RATES LOOM AS MAJOR LIABILITIES FOR CHANCELLOR HELMUT KOHL'S BID FOR RE ELECTION IN OCTOBER A RECENT POLL CONDUCTED BY FOCUS MAGAZINE IDENTIFIED UNEMPLOYMENT AS GERMANY'S PRIMARY POLITICAL ISSUE BY FAR TAIWAN EAGER TO ENTER THE GENERAL AGREEMENT ON TARIFFS AND TRADE PLANS TO EASE ITS BAN ON RICE IMPORTS GOVERNMENT OFFICIALS SAID TAIWAN WILL LET IN A SMALL QUANTITY OF RICE AFTER ITS ENTRY INTO THE G. A. T. T. WHICH IS EXPECTED AS EARLY AS THE END OF THIS YEAR THE OFFICIALS SAID IMPORTS WILL GRADUALLY INCREASE TO ACCOUNT FOR AS MUCH AS FOUR PERCENT OF LOCAL CONSUMPTION IN TEN YEARS TAIWAN CONSUMES ONE POINT SIX MILLION TONS OF RICE A YEAR THE IMPORT BAN EXISTS TO PROTECT THE COUNTRY'S RICE FARMERS OFFICIALS ALSO VOWED TO END TAIWAN'S BAN ON JAPANESE CIGARETTES AND WINE RUSSIAN INDUSTRIAL OUTPUT FELL SIXTEEN PERCENT IN NINETEEN NINETY THREE FROM NINETEEN NINETY TWO DETERIORATING FASTER THAN ANY OTHER MAJOR ECONOMIC SECTOR GOVERNMENT DATA INDICATED BY COMPARISON OVERALL GROSS DOMESTIC PRODUCT DECLINED TWELVE PERCENT CONSTRUCTION CONTRACTED BY SEVEN PERCENT WHILE AGRICULTURAL PRODUCTION DROPPED FOUR PERCENT ON A BRIGHTER NOTE RUSSIANS' INCOMES AFTER ADJUSTING FOR THE EFFECT OF RAMPANT INFLATION GREW NINE PERCENT IN NINETEEN NINETY THREE FROM A YEAR EARLIER THE STATE STATISTICS COMMITTEE SAID EUROPEAN UNION FOREIGN MINISTERS ENDING A STANDOFF AGREED TO REPLACE MORE THAN SIX THOUSAND FOUR HUNDRED NATIONAL IMPORT QUOTAS WITH A HANDFUL OF E. U. WIDE QUOTAS DESIGNED TO PROTECT LOW TECH INDUSTRIES THE MINISTERS AGREED TO REPLACE NATIONAL QUOTAS WITH QUOTAS ON JUST SEVEN CATEGORIES AFFECTING CHINESE GOODS FOOTWEAR GLASSWARE PORCELAIN OTHER TABLEWARE RADIOS TOYS AND GLOVES A PROPOSAL TO PLACE QUOTAS ON BICYCLES WAS REJECTED UNDER THE AGREEMENT THIRTY FIVE MILLION PAIRS OF RUBBER SOLE SHOES CAN BE IMPORTED FROM CHINA BUT SHOES WORTH MORE THAN ABOUT THIRTEEN DOLLARS ARE EXCLUDED FROM THE RESTRICTIONS RUSSIA'S BIGGEST VODKA DISTILLERY REELING UNDER THE IMPACT OF FOREIGN COMPETITION AND HEAVY TAXES SAID IT SENT ITS STAFF OF MORE THAN SEVEN HUNDRED ON TWO WEEKS' UNPAID LEAVE MOSCOW'S KRISTALL PLANT WHICH MANUFACTURES STOLICHNAYA WARNED THAT TAXES ARE DRIVING IT OUT OF BUSINESS RUSSIAN VODKA SUBJECT TO DUTIES OF AS MUCH AS NINETY PERCENT THAT TOOK EFFECT IN DECEMBER HAS BECOME SO EXPENSIVE THAT MANY CONSUMERS ARE TURNING TO CUT RATE FOREIGN VODKA A GOVERNMENT COMMISSION REPORTEDLY IS CONSIDERING A TAX CUT TO HELP DOMESTIC DISTILLERS BRAZIL'S CONGRESS APPROVED A KEY PART OF THE GOVERNMENT'S ECONOMIC STABILIZATION PLAN VOTING THREE HUNDRED EIGHTY EIGHT TO THIRTY EIGHT TO ESTABLISH A SIXTEEN BILLION DOLLAR EMERGENCY FUND FINANCE MINISTER FERNANDO HENRIQUE CARDOSO THREATENED TO RESIGN LAST WEEK WHEN CONGRESS FAILED TO ASSEMBLE A QUORUM TO VOTE ON THE FUND MR. CARDOSO INSISTS THE EMERGENCY FUND IS INTEGRAL TO HIS ECONOMIC PROGRAM BECAUSE MOST OF THE BUDGET IS ALREADY EARMARKED AND THE GOVERNMENT NEEDS SUFFICIENT FUNDING TO MEET PRESSING SOCIAL AND HEALTH NEEDS THE MINISTER WHO IS EMERGING AS A POSSIBLE PRESIDENTIAL CANDIDATE STILL FACES BATTLES ON OTHER PARTS OF HIS PLAN OPENING OF THE ENGLISH CHANNEL TUNNEL BETWEEN BRITAIN AND FRANCE HAS BEEN DELAYED AGAIN EUROTUNNEL P. L. C. THE ANGLO FRENCH CONCERN BUILDING THE TUNNEL SAID IT WON'T MEET ITS TARGET OPENING DATE OF MAY EIGHTH FOR PASSENGER SERVICE AND HAS PUSHED BACK THE START OF FREIGHT SERVICE TO LATE SPRING FROM MARCH SEVENTH EUROTUNNEL OFFICIALS SAID TESTS ON THE TRAINS AND THE RAIL SYSTEM WERE TAKING LONGER THAN EXPECTED EUROTUNNEL ALREADY HAS SOLD SEVERAL THOUSAND TICKETS FOR MAY AND JUNE RIDES THE COMPANY SAID PASSENGERS MAY SEEK REFUNDS OR USE THEIR TICKETS WHEN THE TUNNEL FINALLY OPENS THE TUNNEL ORIGINALLY SLATED TO OPEN IN DECEMBER HAS SUFFERED FROM SEEMINGLY ENDLESS COST OVERRUNS MANAGEMENT PROBLEMS AND CONTRACTOR INFIGHTING COSTS OF THE PROJECT ARE BELIEVED TO BE ABOUT TWELVE POINT SIX BILLION DOLLARS DOUBLE ORIGINAL ESTIMATES THE SALVATION ARMY IS ASKING BRITISH WOMEN TO DONATE THEIR SECOND HAND BRAS FOR DISTRIBUTION OVERSEAS AN OFFICER FOR THE INTERNATIONAL CHRISTIAN AID ORGANIZATION SAID THE UNDERGARMENTS ARE VERY EXPENSIVE IN RUSSIA AND ARE CONSIDERED A STATUS SYMBOL IN INDIA AND PAKISTAN WALL STREET IS DOLING OUT THE FATTEST BONUS PAYCHECKS IN THE BROKERAGE INDUSTRY'S HISTORY BUT ON MILLIONAIRE'S ROW THE TENANTS ARE GROUCHY BIG DISCREPANCIES BETWEEN TOP PRODUCERS AND THE RANK AND FILE BANKER OR TRADER PLUS NEW STRINGENT AND SUBJECTIVE PAY CRITERIA ARE SPARKING BITTERNESS AND A ROUND OF BROKERAGE HOUSE MUSICAL CHAIRS ON WALL STREET BONUSES ACCOUNT FOR A DISPROPORTIONATE SEVENTY FIVE PERCENT OR MORE OF TOTAL ANNUAL COMPENSATION MANY INVESTMENT BANKERS TRADERS AND ANALYSTS QUOTE GOT THEIR NUMBER QUOTE IN RECENT DAYS OR WEEKS AND FOR MOST IT WAS A SWEET FIFTEEN PERCENT TO THIRTY PERCENT ABOVE YEAR EARLIER BONUSES WHICH WERE ALREADY TWENTY PERCENT ABOVE NINETEEN NINETY ONE LEVELS THE BULGING PAY ENVELOPES REFLECT WALL STREET'S RECORD YEAR FOR UNDERWRITING NEW STOCK AND BOND ISSUES OVER ONE TRILLION DOLLARS CAME TO MARKET BUT THE CORPORATE SHARE THE WEALTH MENTALITY OF THE NINETEEN EIGHTIES DOESN'T EXIST ANYMORE SAYS JOAN ZIMMERMAN EXECUTIVE VICE PRESIDENT AT G. Z. STEPHENS INCORPORATED A NEW YORK EXECUTIVE SEARCH FIRM WHILE THEIR BONUSES MADE SOME PEOPLE VERY VERY HAPPY SHE SAYS THIS YEAR WE'VE SEEN THE LARGEST GAPS EVER BIG VAST DIFFERENCES BETWEEN COMPENSATION FOR THE STARS AND FOR THE COGS SHED NO TEARS FOR THE MIDLEVEL INVESTMENT BANKER HOWEVER SECURITIES FIRM EXECUTIVES SAY THAT THIS YEAR'S AVERAGE BONUS JUMP MEANS A TYPICAL INVESTMENT BANKER WITH A SALARY OF ONE HUNDRED FIFTY THOUSAND DOLLARS AND A BONUS LAST YEAR OF SEVEN HUNDRED TWENTY FIVE THOUSAND DOLLARS WILL GET A NINE HUNDRED SIX THOUSAND DOLLAR BONUS THIS YEAR FOR A TOTAL PAY PACKAGE CRACKING ONE MILLION DOLLARS IN THE PAST SECURITIES FIRMS TRIED TO KEEP COMPENSATION FOR MIDLEVEL BANKERS BELOW SEVEN FIGURES BUT THE STREET'S RAGING PROFITS IN NINETEEN NINETY THREE THREW RESTRAINT OUT THE WINDOW THE RUB THOUGH IS THAT FIRMS ARE PAYING LESS OF THE NINETEEN NINETY THREE BONUSES IN CASH OR IN STOCK OPTIONS INSTEAD STOCK GRANTS WITH STRINGS ATTACHED ARE BECOMING INCREASINGLY COMMON CONSIDER SALOMON BROTHERS THE BROKERAGE UNIT OF SALOMON INCORPORATED WHICH HAS COMPLETELY OVERHAULED ITS COMPENSATION SYSTEM TO DIRECTLY LINK BONUSES TO EACH BUSINESS UNIT'S PRODUCTIVITY AND PROFITS NOT TO THE FIRM'S OVERALL RESULTS THE COMPENSATION CHANGES WERE MADE TO MAKE PEOPLE FEEL LIKE OWNERS AND TO MAKE PEOPLE MORE DIRECTLY ACCOUNTABLE FOR THE RESULTS OF THEIR ACTIONS BOTH IN RAISING REVENUES AND CUTTING COSTS SAYS SALOMON CHAIRMAN ROBERT DENHAM AT SALOMON BONUSES FOR STAR PERFORMERS IN POWERHOUSE AREAS WERE UP AS MUCH AS FORTY PERCENT IN PART TO STEM THE WAVE OF DEFECTIONS THAT OFTEN FOLLOW SHARPLY LOWER YEAR END BONUSES BUT A THREE MILLION DOLLAR SALOMON BANKER WILL END UP BEING PAID FORTY TWO PERCENT OF THAT IN SALOMON STOCK AT A FIFTEEN PERCENT DISCOUNT WHICH IS TIED UP FOR FIVE YEARS STOCK OPTIONS HAVE BEEN PHASED OUT PARTIAL STOCK AWARDS WERE ALSO MADE AT FIRMS SUCH AS MERRILL LYNCH AND COMPANY AND PAINEWEBBER GROUP INCORPORATED BUT THEY WEREN'T POPULAR EVEN WITH SHARE PRICES AT A DISCOUNT TO THE MARKET SOME OF WALL STREET'S OWN ANALYSTS CONTEND THAT THE RALLY IN BROKERAGE SHARES IS OUT OF STEAM AT MERRILL LYNCH THE LARGEST U. S. BROKERAGE FIRM GENEROUS BONUSES OF TWENTY FIVE PERCENT ABOVE LAST YEAR'S LEVELS WERE THE NORM BUT INVESTMENT BANKERS ARE SMARTING BECAUSE THE RETAIL SIDE OF THE BUSINESS WON THE LION'S SHARE OF THE BOOTY AT GOLDMAN SACHS AND COMPANY EVEN JUNIOR PARTNERS TOOK HOME A REPORTED FIVE MILLION DOLLARS EACH COMPENSATION WAS ALSO QUITE GENEROUS AT BOUTIQUE DILLON READ AND COMPANY WHERE MERGERS AND ACQUISITIONS HAD THE BEST YEAR IN THE FIRM'S HISTORY AT C. S. FIRST BOSTON A UNIT OF C. S. HOLDING ANXIOUS TO MAKE UP FOR PAST YEARS WHEN ITS COMPENSATION LAGGED BEHIND THE INDUSTRY TWENTY FIVE PERCENT TO FORTY PERCENT BONUS INCREASES WERE COMMON LEHMAN BROTHERS INCORPORATED'S BONUSES WERE AMONG THE MOST RESTRAINED AT TEN PERCENT TO FIFTEEN PERCENT ABOVE YEAR EARLIER LEVELS SOME OF THAT IN PHANTOM STOCK LEHMAN EMPLOYEES ARE IN SOMETHING OF A FINANCIAL LIMBO UNTIL LEHMAN'S PARENT AMERICAN EXPRESS COMPANY SPINS IT OFF AS A PUBLIC COMPANY IN LATE APRIL OR MAY EMPLOYEES AT OTHER COMPANIES SUCH AS MORGAN STANLEY AND COMPANY AND SMITH BARNEY SHEARSON THE BROKERAGE UNIT OF TRAVELERS INCORPORATED WILL HEAR THEIR BONUS NUMBERS IN THE NEXT FEW DAYS AT DONALDSON LUFKIN AND JENRETTE A UNIT OF EQUITABLE COMPANIES BONUSES FOR TRADERS AND BANKERS ARE EXPECTED TO BE UP ABOUT TWENTY PERCENT OVER NINETEEN NINETY TWO LEVELS ACCORDING TO WALL STREET OFFICIALS AND AS USUAL WHEN THE BONUS CHECKS ARE CUT AT MOST FIRMS ON OR BEFORE FEBRUARY TWENTY EIGHTH THE JOB HOPPING BEGINS EXECUTIVE RECRUITERS SAY THIS HAS BEEN THEIR BUSIEST SEASON IN MONTHS SMITH BARNEY WHICH LURED AWAY MERGERS SUPERSTAR ROBERT GREENHILL LAST JUNE FROM MORGAN IS SEEN RAIDING MORGAN AGAIN SMITH BARNEY OFFICIALS SAY THE FIRM PLANS TO ADD THIRTY PEOPLE IN THE NEXT TWO MONTHS AND A TOTAL OF SEVENTY FIVE BY YEAR END SMITH BARNEY'S SIREN SONG TO POTENTIAL HIRES WE'LL PAY FOR PERFORMANCE REGARDLESS OF SENIORITY NOT LIKE TRADITION BOUND MORGAN MORGAN'S REPLY SMITH BARNEY'S RAPIDLY EXPANDING INVESTMENT BANKING OPERATION IS UNPROVEN AND ISN'T IN POSITION FOR A DOWN MARKET SEVERAL C. S. FIRST BOSTON EMPLOYEES ARE ALSO OUT JOB HUNTING PERHAPS FILLING SOME GAPS AT MORGAN ALSO ON THE MOVE OR ATTEMPTING TO BE EXECUTIVE RECRUITERS SAY ARE PRUDENTIAL SECURITIES INCORPORATED BROKERS SEEKING TO JUMP SHIP AS LIMITED PARTNERSHIP WOES MOUNT AT THIS UNIT OF PRUDENTIAL INSURANCE COMPANY OF AMERICA AMONG BROKERAGE FIRMS THAT ARE HIRING THE SPECIALTIES MOST IN DEMAND ARE DERIVATIVES DEBT RESTRUCTURING AND EMERGING MARKETS IN PARTICULAR BANKERS WITH EASTERN BLOC EXPERTISE SAYS ABRAM CLAUDE JUNIOR MANAGING DIRECTOR IN CHARGE OF INVESTMENT BANKING PRACTICES AT RUSSELL REYNOLDS ASSOCIATES INCORPORATED ANALYSTS SPECIALIZING IN HEALTH REAL ESTATE INVESTMENT TRUSTS AND INFORMATION SUPERHIGHWAY COMPANIES CAN ALMOST NAME THEIR OWN PRICE RECRUITERS SAY ALSO BEING PAID BIGGER BUCKS CURRENTLY ARE QUOTE TECHIES QUOTE WHO DEVELOP AND MONITOR COMPUTER TRADING AND TRACKING SYSTEMS FOR BROKERAGE FIRMS NOT ALL WALL STREET DEPARTURES ARE VOLUNTARY BOTH FIRST BOSTON AND MERRILL LYNCH HAD RECENT HOUSECLEANINGS OF MANAGING DIRECTORS BUT MANY OF THOSE WALKING ARE MOTIVATED BY DISTRESS AT THEIR BONUSES EXECUTIVE RECRUITERS SAY DESPITE PAYCHECKS THAT WOULD BE CONSIDERED MUNIFICENT IN MOST BUSINESSES LETDOWNS AND STINGING DISAPPOINTMENTS WERE THE ORDER OF THE DAY FOR MANY TRADERS ANALYSTS AND INVESTMENT BANKERS WHO HAD EXPECTED TO PARTICIPATE MORE FULLY AND INTIMATELY IN THE RAGING WALL STREET BOOM SOME INDIVIDUAL MANAGERS DIDN'T MANAGE EXPECTATIONS WELL SAYS ONE TOP LEVEL EXECUTIVE HOW BIG WERE THE BONUS DISCREPANCIES FOR MIDLEVEL WALL STREET ANALYSTS THE BONUSES RANGED FROM ABOUT SIXTY THOUSAND DOLLARS A PALTRY SUM GIVEN AS A HINT TO PRINT UP RESUMES TO TWO HUNDRED FIFTY THOUSAND DOLLARS FOR ANALYSTS WITH POWERHOUSE CLIENTS OR WHO COULD PROVE THEY HAD BROUGHT REVENUE TO THE FIRM SENIOR ANALYSTS CAN EARN TWICE THAT BONUS IF THEY ARE TOP RANKED IN INSTITUTIONAL INVESTOR MAGAZINE'S ANNUAL POLL AND SINCE EVEN AN UNEXCEPTIONAL BANKER OR TRADER THRIVED IN NINETEEN NINETY THREE'S VOLATILE MARKETS MANAGERS DEMANDED THAT EMPLOYEES WHO WANTED TOP DOLLAR PROVE THEY HAD OPENED UP NEW BUSINESSES CUT COSTS OR RISK FOR THE COMPANY OR WORKED ON TEAM PROJECTS WITH OTHER DIVISIONS BONUSES HAVE TAKEN ON A BIGGER FINANCIAL AND MOTIVATIONAL ROLE SINCE THE STOCK MARKET CRASH OF OCTOBER NINETEEN EIGHTY SEVEN AND THE SUBSEQUENT MASS FIRINGS IN THE BROKERAGE INDUSTRY WALL STREET HAS SHOWN AN INABILITY TO MANAGE DOWN MARKETS WHEN YOU PRODUCE BIG YOU WANT YOUR SHARE BECAUSE THE RETRENCHMENT IN THE LATE NINETEEN EIGHTIES SHOWED THAT WHEN YOU DON'T PRODUCE YOU'RE OUT SAYS ONE WALL STREET VETERAN MANAGING DIRECTOR EARLY THIS WEEK THE MARKET ACTED AS IF THE FED HAD SLAIN INFLATION WITH ITS FRIDAY QUARTER POINT INCREASE IN THE INTEREST RATE BUT BEFORE WE PRONOUNCE INFLATION DEAD AFTER A SINGLE STROKE OF THE FED SWORD THREE CAUTIONARY NOTES ARE IN ORDER THE FIRST IS THAT WE MUST REMEMBER THAT THE SAME BOND MARKET AND THE SAME FORECASTERS WHO ARE NOW POOH POOHING INFLATION WERE TELLING A DIFFERENT TALE EARLY LAST YEAR IN GENERAL NEITHER THE BOND MARKET NOR THE ECONOMISTS FORECAST ACCURATELY LONG TERM INTEREST RATES DID NOT ANTICIPATE THE INFLATION OF THE NINETEEN SEVENTIES OR THE DISINFLATION OF THE NINETEEN EIGHTIES INTEREST RATES REMAINED BELOW THE INFLATION RATE DURING MUCH OF THE NINETEEN SEVENTIES AND AT ELEVEN PERCENT OR TWELVE PERCENT IN NINETEEN EIGHTY FOUR OR NINETEEN EIGHTY FIVE AFTER INFLATION HAD FALLEN TO ABOUT FOUR PERCENT IT IS NOT THAT THE FORECASTERS ARE INCOMPETENT IT IS THAT THE FACTORS DRIVING PRICE CHANGES OVER SHORT SPANS HAVE A LARGE RANDOM COMPONENT INDEED THE RECENT VOLATILITY OF LONG TERM INTEREST RATES SHOWS THAT BONDHOLDERS PROPERLY HAVE LITTLE CONFIDENCE IN FORECASTS OF CONTINUED LOW INFLATION SECOND INFLATION IS NOT LIKE AN ACUTE APPENDIX THAT WE REMOVE ONCE AND FOR ALL WITH AN INTEREST RATE SHIFT INFLATION SLOWED SEVERAL TIMES IN THE PAST THIRTY YEARS IN NINETEEN EIGHTY SIX CONSUMER PRICES ROSE ONLY ONE POINT ONE PERCENT BUT BY NINETEEN EIGHTY EIGHT PRICES WERE RISING AT FOUR POINT FIVE PERCENT IN NINETEEN SEVENTY SIX INFLATION FELL TO FOUR POINT NINE PERCENT BUT IT WAS BACK IN DOUBLE DIGITS BY NINETEEN SEVENTY NINE PRESIDENT NIXON'S PRICE CONTROLS HELD REPORTED INFLATION BELOW THREE POINT FIVE PERCENT IN ONE HUNDRED NINETY SEVEN THOUSAND ONE HUNDRED SEVENTY TWO TWO YEARS LATER INFLATION WAS ABOVE TWELVE PERCENT IN EACH OF THESE PERIODS AND OTHERS FEDERAL RESERVE POLICY WAS TOO EXPANSIVE LAST WEEK'S FED ACTION WAS A SMALL BELATED STEP IN THE RIGHT DIRECTION BUT IT WAS NOT ENOUGH THERE IS A THIRD INDICATOR THAT INFLATION STILL THREATENS IT IS THE FACT THAT GROWTH OF THE MONETARY BASE BANK RESERVES AND CURRENCY SUPPLIED BY THE FEDERAL RESERVE HAS REMAINED AT A HIGH NINE PERCENT TO TEN PERCENT FOR THE PAST TWO YEARS SUCH RATES IN ECONOMISTS' LANGUAGE REPRESENT QUOTE RAPID MONEY GROWTH QUOTE OR THE SEEDS OF CLASSIC INFLATION SOME ARGUE THIS GROWTH DOESN'T MATTER BECAUSE MUCH OF THE MONEY IS ABSORBED IN THE FORMER SOVIET UNION AFRICA AND PARTS OF LATIN AMERICA WHERE DOLLARS CIRCULATE WIDELY BUT IT IS NOT JUST CURRENCY GROWTH THAT IS WORRISOME BANK RESERVES HAVE BEEN RISING RAPIDLY AND MONEY CURRENCY AND DEMAND DEPOSITS SHOWS SIMILAR RATES OF INCREASE FOR THE PAST TWO YEARS PUT IN SIMPLE LANGUAGE THESE RATES MEAN THAT AMERICANS HAVE MONEY TO SPEND AND MAY SPEND IT SOON BUILDING INFLATION EACH OF THESE MEASURES TELLS US THAT THE NECESSARY CONDITION FOR RISING INFLATION IS IN PLACE ALREADY SOME COMMODITY PRICES ARE WHISPERING THAT HIGHER INFLATION IS AHEAD IN THE PAST YEAR OIL PRICES WERE DOWN ALMOST TWENTY FIVE PERCENT BUT DOW JONES FUTURES PRICES ROSE FIFTEEN PERCENT AND THE SPOT INDEX OF CURRENT COMMODITY PRICES STARTED TO RISE A USEFUL RULE OF THUMB IS THAT IT TAKES TWO TO THREE YEARS OF CLASSIC RAPID MONEY GROWTH BEFORE INFLATION STARTS TO RISE AS IN MANY FORECASTS OF SHORT TERM CHANGES THE DIRECTION OF CHANGE IS MORE CERTAIN THAN ITS TIMING THERE ARE HOWEVER ONLY TWO OUTCOMES POSSIBLE FOR THE U. S. ECONOMY IF MONEY CONTINUES TO GROW AT OR NEAR THE TEN PERCENT RATE OF RECENT YEARS EITHER PEOPLE WILL WILLINGLY MAKE RELATIVELY LARGE ADDITIONS TO THEIR CASH BALANCES OR THEY WILL SPEND THE MONEY ON GOODS AND SERVICES IT'S THE LATTER POSSIBILITY FASTER SPENDING GROWTH THAT MAKES BONDHOLDERS NERVOUS ABOUT INFLATION THROUGH MOST OF LAST YEAR SPENDING GREW SLOWLY THE PUBLIC ABSORBED EXCESS MONEY GROWTH BY INCREASING ITS CASH BALANCES SOME INVESTORS BOUGHT STOCKS BONDS AND MUTUAL FUNDS PUSHING BOND PRICES DOWN AND STOCK PRICES UP THE SELLERS OF THESE STOCKS AND BONDS DID NOT RUSH TO SPEND THE MONEY THEY RECEIVED IN EXCHANGE SO AVERAGE CASH BALANCES INCREASED IF THE PUBLIC REPEATS THAT BEHAVIOR THIS YEAR THE RISE IN INFLATION WILL AGAIN BE DELAYED IF THEY SPEND MORE RAPIDLY INFLATION WILL RISE FEDERAL RESERVE POLICY IS INCONSISTENT WITH THIS SITUATION AND THE CURRENT INFLATION RATE A ZERO POINT TWO FIVE PERCENT INCREASE IN THE FEDERAL FUNDS RATE DOES NOT REMOVE THE INCONSISTENCY IN AN ECONOMY LIKE OURS WHERE OUTPUT GROWS AT AN AVERAGE RATE OF TWO PERCENT TO THREE PERCENT INFLATION CANNOT REMAIN AT THREE PERCENT IF MONEY GROWS AT TEN PERCENT TO GAUGE HOW MUCH INFLATION WE SHOULD EXPECT WE CAN COMPARE GROWTH OF THE NOMINAL MONETARY BASE WHICH THE FEDERAL RESERVE PRODUCES WITH GROWTH OF THE PUBLIC'S WILLINGNESS TO HOLD BASE MONEY SHOWN BY GROWTH OF REAL OR DEFLATED BASE MONEY THE CHART SHOWS THESE DATA SEE ACCOMPANYING ILLUSTRATION W. S. J. FEBRUARY NINTH NINETEEN NINETY FOUR ENTIRELY AS A MATTER OF ARITHMETIC THE DIFFERENCE BETWEEN THE TWO LINES WOULD BE THE ACTUAL RATE OF INFLATION IF BOTH NOMINAL AND REAL BASE WERE MEASURED FOR THE SAME ONE OR THREE YEAR PERIOD THE DIFFERENCE BETWEEN THE TWO LINES IS THE STEADY OR EQUILIBRIUM RATE OF INFLATION WHEN THE FED REACHES ITS GOAL OF INFLATION AT ZERO PERCENT TO TWO PERCENT THE DISTANCE BETWEEN THE TWO LINES IS NO MORE THAN TWO PERCENTAGE POINTS NEAR THE END OF NINETEEN NINETY THREE THE DIFFERENCE BETWEEN THE TWO LINES THE EQUILIBRIUM RATE OF INFLATION WAS FOUR POINT FIVE PERCENTAGE POINTS IT HAS REMAINED BETWEEN FOUR POINT FIVE AND FIVE POINT FIVE PERCENTAGE POINTS SINCE EARLY NINETEEN NINETY TWO THIS IS ALSO THE INFLATION RATE THAT THE PUBLIC ANTICIPATED OVER THE NEXT TEN YEARS IN SURVEYS TAKEN BY THE UNIVERSITY OF MICHIGAN EARLY LAST YEAR ALTHOUGH THE ACTUAL RATE OF INFLATION HAS REMAINED BELOW THE EQUILIBRIUM RATE THE EQUILIBRIUM RATE HAS NOT BEEN REDUCED THE PUBLIC'S WILLINGNESS TO ADD TO ITS CASH BALANCES SHOWN BY THE GROWTH OF REAL BASE MONEY HAS HELD INFLATION DOWN OF COURSE DIVERGENT MOVEMENTS OF THE ACTUAL AND EQUILIBRIUM RATES ARE NOT UNUSUAL GENERALLY THE ACTUAL RATE MOVES TOWARD THE EQUILIBRIUM RATE IN TWO OR THREE YEARS THE CHART SHOWS THAT FROM MID NINETEEN EIGHTY SIX TO THE END OF NINETEEN EIGHTY SEVEN THE EQUILIBRIUM INFLATION RATE WAS FOUR PERCENT TO FIVE PERCENT THE ACTUAL RATE REACHED THIS RANGE IN NINETEEN EIGHTY NINE TO NINETY DESPITE THE OIL PRICE INCREASE AT THE START OF THE GULF WAR INFLATION FELL IN NINETEEN NINETY ONE THE REASON IS THAT THE EQUILIBRIUM RATE OF INFLATION HAD BEEN BROUGHT DOWN TO LESS THAN THREE PERCENT BY TIGHTER MONETARY POLICY SLOWER BASE GROWTH IN NINETEEN EIGHTY NINE TO NINETY LAST YEAR THE FED RAISED ITS FORECASTS OF INFLATION BUT TOOK NO ACTION TO REDUCE INFLATION IT FAILED TO TIGHTEN MONEY THIS SUGGESTS THAT THE MEMBERS DO NOT TAKE THEIR PROMISES SERIOUSLY THE FED MAY LOWER ITS PROJECTIONS THIS YEAR BUT IT IS ACTIONS NOT PROMISES THAT MATTER THE ACTIONS HAVE BEEN SO SLOW IN COMING AS TO BE IMPRUDENT THE CURRENT FED IS STILL BEHIND THE CURVE ONE REASON IS THAT IT PLACES GREAT WEIGHT ON SUCH LAGGING CYCLICAL INDICATORS AS MONTHLY CHANGES IN UNEMPLOYMENT AND INFLATION EFFECTIVE MONETARY POLICY DOES NOT REQUIRE SUCH CAREFUL CONTROL OF TIMING THE LOW COST WAY TO MAINTAIN GROWTH WITH LOW INFLATION IS TO LOWER MONEY GROWTH BEFORE INFLATION STARTS TO RISE BEFORE FRIDAY'S BELATED MOVE A PRUDENT POLICY WOULD HAVE SLOWED GROWTH OF THE MONETARY BASE OR BANK RESERVES TO AN ANNUAL RATE OF SEVEN PERCENT TO EIGHT PERCENT NO LATER THAN LAST YEAR IT MAY BE TOO LATE TO LOCK IN ALL OF THE RECENT REDUCTIONS IN THE INFLATION RATE BUT IT WILL CERTAINLY BE TOO LATE IF THE FED CONTINUES ITS HESITANT POLICY SEVERAL FOREIGN CENTRAL BANKS ENGLAND GERMANY NEW ZEALAND HAVE NOW ADOPTED LONG TERM PRICE STABILITY AS THEIR PRIMARY OR ONLY GOAL THEY SET TARGETS TO REDUCE INFLATION GRADUALLY OVER TWO OR THREE YEARS AT LAST WEEK'S MEETING THE FED SET THE PROJECTIONS FOR INFLATION AND GROWTH THAT IT WILL ANNOUNCE AT CONGRESSIONAL HEARINGS LATER THIS MONTH IF IT TAKES ITS ANNOUNCED GOAL OF ENDING INFLATION SERIOUSLY IT SHOULD TELL US HOW AND WHEN IT PROPOSES TO GET THERE MR. MELTZER IS A PROFESSOR OF POLITICAL ECONOMY AT CARNEGIE MELLON UNIVERSITY IN RESPONSE TO QUOTE QUANDARY OVER ONE TERM TO COVER MYRIAD PEOPLE QUOTE PEOPLE PATTERNS JANUARY EIGHTEENTH THE LAST TIME I LOOKED THE CENSUS BUREAU RECKONED ME AN QUOTE HISPANIC SURNAMED INDIVIDUAL QUOTE NOT A BAD CONCEPT SURE IT HAD FLAWS WHAT IF THE FATHER IS AN O'HARA AND THE MOTHER A HERNANDEZ HOW ABOUT A GERMAN SURNAMED GERMAN SPEAKING BLUE EYED FRECKLED REDHEAD WHO EMIGRATED FROM CHILE BUT HISPANIC SURNAMED INDIVIDUAL HAD A CHARMING BUREAUCRATIC AWKWARDNESS AND IN MY CASE AT LEAST IT WAS CONSPICUOUSLY APPROPRIATE THE NEWER TERMS DON'T SEEM LESS FLAWED OUR GERMAN SURNAMED CHILEAN AMERICAN LATINO WITH RED HAIR BLUE EYES AND FRECKLES IS STILL NOT A CLEAN FIT NOR IS THE HISPANIC SURNAMED MEXICAN AMERICAN INDIVIDUAL WHO GREW UP SPEAKING ONLY ENGLISH IN PITTSBURGH AND NOW LIVES IN MISSISSIPPI MAYBE WE SHOULD STICK WITH THE SURNAME CONCEPT UNTIL A NEW LINNAEUS HAPPENS UPON A MORE USER FRIENDLY ETHNIC PHYLUM LAMENTABLY THE SURNAME CONCEPT CAN ALSO BE USED AS A MARKETING TOOL I'VE GOTTEN CALLS FROM A COMPANY PUSHING ITS LONG DISTANCE TELEPHONE SERVICES AND FEATURING SPANISH SPEAKING SALESPEOPLE WHY ME AM I OVERLY TOUCHY OR DO ALL THE WESLOWSKYS OUT THERE HAVE TO PUT UP WITH THE SAME THING OR IS IT MY NAME NEWS CORPORATION SIGNALED ITS INTENTION TO EXPAND IN MAGAZINES BY CREATING POSTS AT A NEW MAGAZINE DIVISION JOSEPH BARLETTA THE FIFTY SEVEN YEAR OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NEWS CORPORATION'S T. V. GUIDE WAS NAMED TO THE ADDED POST OF PRESIDENT OF MURDOCH MAGAZINES ANTHEA DISNEY THE FORTY EIGHT YEAR OLD EDITOR IN CHIEF OF T. V. GUIDE WILL ALSO BECOME EDITORIAL DIRECTOR OF MURDOCH MAGAZINES NEWS CORPORATION HASN'T HAD A SEPARATE MAGAZINE DIVISION SINCE SELLING MOST OF ITS MAGAZINES IN NINETEEN NINETY AND THE ONLY MAGAZINE IT NOW PUBLISHES BESIDES T. V. GUIDE IS A WOMAN'S MAGAZINE MIRABELLA THE MAGAZINES HAD BEEN OVERSEEN BY PATRICK PURCELL WHO ALSO RAN NEWS CORPORATION'S U. S. NEWSPAPERS AND ITS NEWSPAPER ADVERTISINGINSERT BUSINESS MR. PURCELL JUST AGREED TO BUY NEWS CORPORATION'S BOSTON HERALD NEWSPAPER AND IS LEAVING THE COMPANY TO RUN IT THE ANNOUNCEMENT OF NEW MAGAZINE EXECUTIVES CAME JUST A DAY AFTER NEWS CORPORATION PULLED THE PLUG ON A MAGAZINE IT HAD BEEN TESTING MARRIED WOMAN ONLY ONE ISSUE CAME OUT BUT SALES WERE DISAPPOINTING THE COMPANY SAID MR. BARLETTA WHO JOINED NEWS CORPORATION SIX MONTHS AGO AFTER A LONG CAREER IN NEWSPAPERS SAID QUOTE THE RESPONSE TO MARRIED WOMAN WAS UNDERWHELMING BUT THERE WILL BE OTHER MAGAZINES STARTED AND ACQUIRED ANTHEA AND I WOULDN'T HAVE TAKEN THESE POSITIONS IF THERE WASN'T REAL COMMITMENT FROM NEWS CORPORATION AND CHAIRMAN RUPERT MURDOCH TO GROW IN MAGAZINES MS. DISNEY ADDED WE WANT TO APPLY THE EXPERTISE WE ALREADY HAVE AT NEWS CORPORATION TO MAGAZINES AND THAT MEANS WE'LL AIM PRIMARILY AT THE AREAS OF ENTERTAINMENT AND NEWS SEPARATELY THE FOUNDER AND CREATOR OF MARRIED WOMAN KELLY MCGEE SAID SHE IS SEARCHING FOR ANOTHER PUBLISHER TO FUND HER MAGAZINE TO CAROL WOMACK THE ONLY THING WORSE THAN THE DANGEROUS CHEMICALS OOZING UNDERGROUND DOWN THE STREET FROM HER FORMER HOME IS HOW HER NEIGHBORS REACTED ONE FAMILY SUED THE DEVELOPER OF THE SUBDIVISION ARGUING THEY SHOULD HAVE BEEN WARNED ABOUT THE CHEMICALS BUT STILL BOUGHT ANOTHER NEARBY HOUSE WHICH THEY LATER MOVED INTO AND SUED AGAIN ANOTHER COUPLE SAID THEIR HOUSE WAS UNSAFE MOVED OUT THEN RENTED IT TO ANOTHER FAMILY STILL A THIRD USED SETTLEMENT MONEY TO BUILD A RAMBLING ADDITION QUOTE THERE'VE BEEN SO MANY LAWSUITS AND SO MUCH CRAZINESS QUOTE SAYS MRS. WOMACK A THIRTY NINE YEAR OLD FOURTH GRADE TEACHER WHO ABANDONED HER HOME LAST JULY I DON'T THINK ANYONE HAS REALLY FOCUSED ON WHAT IT WILL TAKE TO CLEAN IT UP KNOWN AS BRIO THE DUSTY FIFTY EIGHT ACRE PATCH ADJACENT TO MRS. WOMACK'S OLD NEIGHBORHOOD DOESN'T LOOK MENACING BUT THE TREELESS EXPANSE RINGED BY A CHAIN LINK FENCE DOTTED WITH DAY GLO ORANGE KEEP OUT SIGNS WAS ONCE A FUEL REFINERY AND CONCEALS TWENTY TWO UNLINED UNDERGROUND CHEMICAL PITS IN NINETEEN EIGHTY FOUR THE ENVIRONMENTAL PROTECTION AGENCY ADDED IT TO ITS SUPERFUND LIST BURIED HERE IS A BREW OF VOLATILE COMPOUNDS INCLUDING BENZENE AND VINYL CHLORIDE BOTH KNOWN HUMAN CARCINOGENS GETTING LISTED UNDER THE NINETEEN EIGHTY SUPERFUND LAW WAS SUPPOSED TO INDICATE A CLEANUP WAS ON ITS WAY BUT WHAT CAME SOON AFTER THE E. P. A. WERE HORDES OF LAWYERS THOUSANDS OF RESIDENTS HAVE SUED THE DEVELOPERS AND BUILDERS OF THE SUBDIVISION KNOWN AS SOUTHBEND AND SITUATED ABOUT TWENTY MILES SOUTH OF DOWNTOWN HOUSTON THEY ALSO HAVE SUED THE CHEMICAL COMPANIES ESPECIALLY MONSANTO COMPANY OF SAINT LOUIS BEING HELD RESPONSIBLE FOR THE WASTE SITE TEACHERS AND PUPILS AT A LOCAL SCHOOL SUED RESIDENTS OF A NEIGHBORHOOD HALF A MILE AWAY SUED EVEN LITTLE LEAGUERS WHO PLAYED NEARBY SUED MOST OF THESE SUITS FILED IN STATE DISTRICT COURT IN HARRIS COUNTY ARE STILL PENDING THE COMPANIES AND THEIR INSURERS HAVE PAID OUT HUNDREDS OF MILLIONS OF DOLLARS IN SETTLEMENTS BUT THE CLEANUP HAS YET TO BEGIN WITH SUPERFUND UP FOR RENEWAL IN WASHINGTON CASES SUCH AS BRIO HELP EXPLAIN WHY THE PROGRAM IS LAMBASTED BY BOTH BUSINESS AND ENVIRONMENTALISTS JUST ABOUT EVERYTHING THAT CAN GO WRONG AT A SUPERFUND SITE WENT WRONG AT BRIO SAYS LINDA GREER A SENIOR SCIENTIST AT THE NATURAL RESOURCES DEFENSE COUNCIL THE CLINTON ADMINISTRATION LAST WEEK PROPOSED SWEEPING CHANGES TO THE SUPERFUND LAW THAT E. P. A. ADMINISTRATOR CAROL BROWNER SAID WOULD MAKE CLEANUPS FASTER FAIRER AND MORE EFFICIENT A MAJOR COMPLAINT ABOUT THE LAW IS ITS FAILURE TO ADDRESS QUICKLY MANY TOXIC DUMPS OVER THE PAST FOURTEEN YEARS ONLY ABOUT TWO HUNDRED HAVE BEEN CLEANED UP WHILE THE LIST HAS SWOLLEN TO MORE THAN ONE THOUSAND TWO HUNDRED FIFTY SOME ESTIMATE THAT THESE CLEANUPS COULD TAKE FIFTY YEARS THE CLINTON PROPOSALS INCLUDE LOOSENING STANDARDS FOR SOME CLEANUPS ESPECIALLY ON LAND NEVER AGAIN TO BE USED FOR HOUSING INCENTIVES TO REDUCE COSTLY LEGAL TUSSLES AMONG COMPANIES RESPONSIBLE FOR WASTE SITES AND MORE COMMUNITY INVOLVEMENT IN DECISION MAKING BUT STREAMLINING SUPERFUND WON'T DO MUCH TO AVOID SITUATIONS SUCH AS BRIO WHERE MANY OF THE THINGS THAT MISFIRED HAVE NOTHING TO DO WITH THE LAW ITSELF THE REVISIONS FOR EXAMPLE WON'T STOP LITIGIOUS RESIDENTS FROM SEEKING DAMAGES FOR POSSIBLE HEALTH PROBLEMS OR STEM THE FEARS AND UNCERTAINTIES THAT ARISE WHEN LAND NEXT TO ONE'S HOME IS TAGGED A TOXIC DUMP SIMILARLY BUSINESSES RESPONSIBLE FOR THE CLEANUPS MAY BE DISCOURAGED FROM GETTING INTO LEGAL WRANGLES BETWEEN THEMSELVES BUT THEY CAN'T BE FORBIDDEN TO IN THE CASE OF BRIO LOCAL RESIDENTS HAVE ALSO RAISED A STORM ABOUT THE CLEANUP ITSELF THEY CONTEND THAT THE AGENCY HAS OVERLOOKED EVIDENCE OF A WIDER RANGE OF CONTAMINANTS AT THE SITE THAN IT HAS ACKNOWLEDGED EXISTS THERE RESIDENTS WANT A MUCH MORE COMPLETE CLEANUP THAN CURRENTLY ENVISIONED ALL THE LAWSUITS AROUND BRIO ARE NOT THE FAULT OF SUPERFUND SAYS THE NATURAL RESOURCES DEFENSE COUNCIL'S MS. GREER AND THEY WON'T BE ELIMINATED UNDER THE NEW LAW NOT THAT IT WAS CLEAR AT FIRST THAT BRIO WOULD BECOME SUCH A LEGAL SWAMP BACK IN NINETEEN EIGHTY FOUR MOST RESIDENTS BLANDLY ACCEPTED THE E. P. A.'S ASSURANCES THAT LIVING IN SOUTHBEND WASN'T DANGEROUS AND THAT A CLEANUP WOULD SOON BE UNDER WAY FAMILIES CONTINUED MOVING IN THROUGHOUT THE DECADE WHILE OTHERS BUILT POOLS OR PUT UP SIDING QUOTE WE HAD NO REASON TO DOUBT THE E. P. A. AFTER ALL THEY WERE THE ONES COMING TO FIX THE PROBLEM QUOTE SAYS NANCY WEBBER A THIRTY EIGHT YEAR OLD HOUSEWIFE WHO MOVED INTO SOUTHBEND IN NINETEEN EIGHTY ONE BUT THEN SHE STARTED NOTICING HEALTH PROBLEMS IN HER CHILDREN HER SON HAD EIGHTEEN UPPER RESPIRATORY INFECTIONS BEFORE HE TURNED TWO AND DEVELOPED A SPEECH IMPEDIMENT HER DAUGHTER KEPT HAVING MASSIVE NOSEBLEEDS BY NINETEEN EIGHTY NINE WORRIED RESIDENTS HAD CONDUCTED A DOOR TO DOOR SURVEY AND SAID THEY FOUND FRIGHTENING NUMBERS OF BIRTH DEFECTS LEUKEMIA AND OTHER HEALTH PROBLEMS THE E. P. A.'S POSITION WAS THAT IF THERE WAS SUCH A PATTERN BRIO WASN'T AT FAULT THE AGENCY SAYS IT HAS YET TO FIND A PATHWAY SHOWING HOW CHEMICALS GOT INTO THE SUBDIVISION OTHER EFFORTS TO CONFIRM A PATTERN OF HEALTH PROBLEMS HAVE BEEN DISMISSED BY THE E. P. A. AND THE CHEMICAL COMPANIES AS INCONCLUSIVE TO RESOLVE THE QUESTION THE AGENCY FOR TOXIC SUBSTANCES AND DISEASE REGISTRY A DIVISION OF THE U. S. PUBLIC HEALTH SERVICE IS CONDUCTING A HEALTH SURVEY ON EVERY WOMAN WHO EVER GAVE BIRTH THERE MRS. WEBBER DOESN'T NEED ANY MORE PROOF SHE EVENTUALLY HAD HER CHILDREN TESTED AND FOUND ABNORMAL LEVELS OF SOME CHEMICALS IN THEIR BLOOD NO ONE HAS EVER EXPLAINED HOW THE CHEMICALS MIGHT HAVE COME FROM BRIO ITS BORDER WAS THREE BLOCKS FROM WHERE THEY LIVED BUT THE WEBBERS DECIDED TO FLEE THEIR HOUSE TO A COMMUNITY FIFTY MILES TO THE NORTH AND MRS. WEBBER SAYS HER CHILDREN'S PROBLEMS HAVE SUBSIDED THE FAMILY SUED BUT WE GOT VERY LITTLE MONEY MRS. WEBBER SAYS BECAUSE WHEN YOU LOOK AT MY KIDS YOU DON'T SEE THE PROBLEMS AS PART OF THE OUT OF COURT SETTLEMENT THE WEBBERS HAD TO AGREE NOT TO DISCLOSE TERMS BY THE TIME THE WEBBERS LEFT IN NINETEEN NINETY NOT ONLY THE RESIDENTS WERE WORRIED THEIR MORTGAGE COMPANY IGNORED THEM WHEN THEY STOPPED SENDING PAYMENTS ON THEIR ABANDONED HOME AND THEY SOON LEARNED THE REASON THE COMPANY HAD TORN UP THE NOTE THEY SAID YOU OWN IT YOU DON'T NEED TO CALL US ANYMORE MRS. WEBBER RECALLS WORRIED ABOUT POSSIBLE LIABILITY MORTGAGE HOLDERS SIMPLY GAVE SOME PEOPLE THEIR HOUSES SIMILARLY THE RESOLUTION TRUST CORPORATION WHICH ENDED UP WITH SOME SOUTHBEND PROPERTIES WHEN IT TOOK OVER FAILED THRIFT INSTITUTIONS RUSHED TO UNLOAD THEM AUCTIONING OFF ONE HOUSE FOR JUST THIRTY NINE DOLLARS IN ANOTHER MOVE THAT STARTLED RESIDENTS THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT STOPPED PUTTING FOR SALE SIGNS ON HOUSES IT OWNED FEARING THAT SUCH ADVERTISING MIGHT BE VIEWED AS ENDORSING THE NEIGHBORHOOD AS SOME RESIDENTS WERE FLEEING OTHER PEOPLE MOVED INTO SOUTHBEND AND BECAME ELIGIBLE TO SUE ONE FAMILY THAT ARRIVED IN NINETEEN NINETY GOT FIFTY THOUSAND DOLLARS FOR EACH OF TWO CHILDREN TO COVER THE POSSIBILITY THEY MIGHT DEVELOP HEALTH PROBLEMS IN THE FUTURE WITH THE E. P. A. CONTENDING IT WAS SAFE TO LIVE THERE LATECOMERS COULD SAY THEY MOVED IN WITHOUT REALIZING THE DANGER EVEN THOUGH SELLERS HAD BEGUN REQUIRING BUYERS TO SIGN DISCLOSURE FORMS STATING THEY KNEW THAT THE HOUSE WAS NEAR A SUPERFUND SITE SOME FAMILIES ENDED UP IN A SERIES OF LAWSUITS MARIA MOLINA SAYS SHE AND HER HUSBAND NOE SUED THE DEVELOPER OVER DECEPTIVE TRADE AFTER DISCOVERING THAT THE HOUSE THEY BOUGHT IN NINETEEN EIGHTY THREE A YEAR BEFORE THE ANNOUNCEMENT ABOUT BRIO WAS WITHIN VIEW OF THE SUPERFUND SITE THEY GOT AN OUT OF COURT SETTLEMENT BUT THEY BOUGHT A SECOND HOUSE IN THE NEIGHBORHOOD IN NINETEEN EIGHTY SEVEN ACCORDING TO REAL ESTATE RECORDS MRS. MOLINA SAYS THEY WANTED TO HELP BOLSTER THE AREA AND HAVE AN INVESTMENT TO HELP PAY FOR THEIR THREE SONS' EDUCATIONS WE'D HEARD ALL ABOUT THE SCARE SHE SAYS BUT THE E. P. A. WAS TELLING US IT WAS O. K. AND WE LOVED THE NEIGHBORHOOD ESPECIALLY THE SCHOOL THE MOLINAS MOVED INTO THE SECOND HOUSE AND NOW ARE SUING AGAIN THIS TIME ON BEHALF OF THE BOYS WHILE WAITING FOR THE DEVELOPER TO BUY THE HOUSE BACK THE CHILDREN ARE FINE SHE SAYS QUOTE SO FAR QUOTE ANOTHER LITIGANT IS LEE ANNE HERBERT A SOUTHBEND RESIDENT FROM NINETEEN EIGHTY TWO TO NINETEEN NINETY WHO SAYS SHE HAD FOUR EXTREMELY DIFFICULT PREGNANCIES AND HER FIRST CHILD WAS STILLBORN SHE BLAMES THE WASTE SITE WHICH WAS TWO DOORS AWAY THE HERBERTS HAVE ALREADY SUED ON BEHALF OF THEMSELVES AND THEIR CHILDREN AND NOW ARE CONSIDERING SUING OVER THE CHILD THAT DIDN'T SURVIVE THEY ALREADY HAVE COLLECTED MONEY IN SEVERAL SETTLEMENTS AT TIMES IT SEEMS LIKE I'M GETTING GREEDY MS. HERBERT SAYS BUT I DON'T CARE AFTER WHAT WE'VE SUFFERED THROUGH WE DESERVE SOMETHING WHILE RESIDENTS SUED THE BUILDER OF THE SUBDIVISION AND THE COMPANIES RESPONSIBLE FOR THE WASTE SITE GOT INTO A LEGAL SNARL OF THEIR OWN THAT HAPPENED EVEN THOUGH THE BUSINESSES RESPONSIBLE FOR THE SITE AGREED EARLY ON ABOUT HOW TO PAY THE CLEANUP BILL WHICH IS EXPECTED TO RUN BETWEEN SIXTY MILLION DOLLARS AND EIGHTY MILLION DOLLARS IN MANY SUPERFUND CLEANUPS IT IS PRECISELY THIS QUESTION THAT SPARKS THE LEGAL WRESTLING THE FIGHT AT BRIO HOWEVER ERUPTED OVER WHO SHOULD PAY THE SETTLEMENTS TO THE NEARBY RESIDENTS IN THE FIRST WAVE OF LAWSUITS IN THE MID NINETEEN EIGHTIES RESIDENTS MAINLY CONTENDED THAT THEY WERE VICTIMS OF DECEPTIVE TRADE BECAUSE NOBODY HAD WARNED THEM ABOUT THE WASTE SITE THESE PEOPLE GOT RELATIVELY SMALL PAYOUTS BUT WHEN HOMEOWNERS STARTED CLAIMING HEALTH PROBLEMS AND THE PROSPECT OF HUGE JURY AWARDS LOOMED THE DEVELOPER FARM AND HOME SAVINGS ASSOCIATION OF NEVADA MISSOURI BEGAN LOOKING AROUND FOR SOMEONE TO BEAR THE COST IN NINETEEN EIGHTY NINE A GROUP OF RESIDENTS WERE SUING FARM AND HOME AND MONSANTO CONTENDING THAT THEY WERE GETTING SICK FROM LIVING IN THE NEIGHBORHOOD AFTER STEADFASTLY DENYING THERE WAS ANY PROBLEM IN THAT CASE THE DEVELOPER AND ITS INSURER CRUM AND FORSTER INCORPORATED A BASKING RIDGE N. J. SUBSIDIARY OF XEROX CORPORATION DECIDED TO SETTLE WITH THE RESIDENTS AND TEAM UP WITH THEM TO SUE MONSANTO IN THE STATE DISTRICT COURT UNDER THIS ARRANGEMENT KNOWN AS A MARY CARTER AGREEMENT IN TEXAS THE INSURER AND DEVELOPER WERE ELIGIBLE TO POCKET HALF OF WHATEVER THE RESIDENTS WON FROM MONSANTO BUT THE JURY FOUND FOR MONSANTO AND IN A BITTER TWIST LATER SUITS RELIED ON THE RECORD OF THIS CASE IN WHICH THE DEVELOPER AND INSURER APPEARED TO ACKNOWLEDGE PROBLEMS IN SOUTHBEND WE TOOK THE POSITION IN THIS CASE THAT RIGHT NEXT DOOR TO A HAZARDOUS WASTE SITE IS PROBABLY NOT THE BEST PLACE TO BUILD A SUBDIVISION SAYS THOMAS BISTLINE A MONSANTO ATTORNEY BUT THERE WAS NO PROOF ANYONE WAS INJURED THE DISPUTE IS FAR FROM OVER MONSANTO WON A SEVENTY ONE MILLION DOLLAR VERDICT IN STATE COURT IN HARRISON COUNTY IN NINETEEN NINETY TWO AGAINST CRUM AND FORSTER WHICH ALSO IS ONE OF THE CHEMICAL COMPANY'S OWN INSURERS MONSANTO CLAIMED CRUM AND FORSTER ACTED IN BAD FAITH IN GOING TOGETHER WITH RESIDENTS TO TRY TO COLLECT MONEY UNDER A MARY CARTER AGREEMENT THE CASE IS ON APPEAL MONSANTO IS ALSO WRANGLING WITH CRUM AND FORSTER OVER WHO SHOULD PAY ITS SHARE OF OTHER SETTLEMENTS WITH THE RESIDENTS MEANWHILE SOUTHBEND HAS BECOME ALMOST A SUBURBAN GHOST TOWN ALL BUT ABOUT ONE HUNDRED OF THE SIX HUNDRED SIXTY SEVEN HOMES ARE BOARDED UP THE COMMUNITY POOL IS FILLED WITH DIRT AND THE ELEMENTARY SCHOOL IS CLOSED TO STOP THE HAILSTORM OF LITIGATION SOUTHBEND'S DEVELOPER AND CRUM AND FORSTER ARE BUYING BACK THE HOUSES BUT THE TWO SIDES ARE FIGHTING OVER WHO SHOULD PAY FOR THAT AS WELL THE ENTIRE AREA PROBABLY WILL BE BULLDOZED DRIVING ALONG A RUTTED PATH INSIDE THE FENCE SEPARATING THE WASTE SITE FROM SOUTHBEND JOHN MEYER THE E. P. A. PROJECT MANAGER GAZES AT THE BLEAK EMPTY HOUSES AND SHAKES HIS HEAD WE STILL DON'T BELIEVE THERE'S ANY IMMEDIATE HEALTH RISK OVER THERE HE SAYS EXPLAINING THAT HIS AGENCY'S SOIL AND WATER TESTS NEVER FOUND ANY CONTAMINATION THAT WOULD EXPLAIN HEALTH PROBLEMS HE CONCEDES THAT SUPERFUND SEEMS TO HAVE FAILED AT BRIO QUOTE IF ITS PURPOSE IS TO CLEAN UP SITES QUICKLY QUOTE BUT HE ADDS NOTHING WOULD HAVE HAPPENED HERE IF IT WEREN'T FOR THE LAW PULLING OVER NEAR THE BANK OF A MUDDY CREEK HE SHOWS ONE OF THE THINGS E. P. A. IS ALREADY DOING TO CONTAIN THE DAMAGE FROM DECADES OF CARELESS HANDLING OF CHEMICALS A WHITE PLASTIC PIPE STICKS OUT OF THE GROUND LINKED TO A PUMP AND A NEARBY FILTERING MACHINE PART OF A NETWORK OF PUMPS AND FILTERS THAT PROBABLY WILL BE NEEDED FOR THE INDEFINITE FUTURE TO STOP CHEMICALS FROM LEACHING INTO THE WATER FROM THE GROUND BELOW THE WASTE PITS PEOPLE DON'T REALIZE THAT WE'RE GOING TO HAVE TO BE HERE FOREVER HE SAYS THE E. P. A. HAS BUILT AN INCINERATOR AT BRIO TO BURN WHAT IT CAN DIG OUT OF THE GROUND BUT AS OFTEN HAPPENS AT SUPERFUND SITES LOCALS ARE OPPOSING THAT TOO MANY FEAR THE INCINERATOR WILL SPEW INTO THE AIR DANGEROUS CHEMICALS THAT COULD DRIFT INTO MORE DISTANT NEIGHBORHOODS THE ONLY OTHER OPTION WOULD BE TO DIG UP THE CHEMICAL PITS AND HAUL THE SOIL AWAY BUT THAT WOULD RISK SPREADING THE CONTAMINATION AND CREATING ANOTHER HAZARDOUS WASTE SITE SOMEWHERE ELSE THIS IS ONE REASON E. P. A. FAVORS DEALING WITH HEAVILY CONTAMINATED SOIL WITH ON SITE INCINERATION WITH THE AGENCY'S CREDIBILITY HERE WEAKENED BY THE SOUTHBEND DEBACLE IT FACES A TOUGH TASK CONVINCING RESIDENTS THE INCINERATOR IS SAFE ONE SKEPTIC IS MARIE FLICKINGER EDITOR OF THE LOCAL NEWSPAPER HUNCHED OVER BOXES OF DOCUMENTS AND AERIAL MAPS IN HER CLUTTERED OFFICE JUST UP THE ROAD FROM THE BRIO SITE SHE HAS MADE STOPPING THE INCINERATOR A TOP PRIORITY OFFICIALS WHO ONCE MIGHT HAVE DISMISSED MRS. FLICKINGER TAKE HER VERY SERIOUSLY HER CRUSADE HAS HELPED DRAW ATTENTION TO BRIO FROM TEXAS GOVERNOR ANN RICHARDS WHO HAS ENLISTED HELP FROM E. P. A. ADMINISTRATOR BROWNER IN RE EXAMINING THE CLEANUP I GUESS YOU COULD SAY BRIO IS MY OBSESSION SAYS MRS. FLICKINGER EXPLODING IN A CACKLE OF LAUGHTER IF MRS. FLICKINGER HAS A NEMESIS IT'S NORMA GOLDMAN AS SPOKESWOMAN FOR THE BRIO SITE TASK FORCE MS. GOLDMAN REPRESENTS THE CHEMICAL COMPANIES THAT DRAFTED THE BRIO CLEANUP PLAN UNDER E. P. A. OVERSIGHT MS. GOLDMAN NOTES THAT MRS. FLICKINGER HAS A FINANCIAL INTEREST IN SOUTHBEND SHE OWNS A HOUSE THERE IN WHICH HER SON ONCE LIVED MRS. FLICKINGER ADMITS OWNING THE HOUSE AND SHE IS SEEKING A NOMINAL SETTLEMENT ON IT BUT DENIES THIS HAS COLORED HER OPINION OF COURSE MANY OF THE PROBLEMS AT BRIO MIGHT HAVE BEEN AVOIDED IF AS MS. GOLDMAN ONCE CONTENDED THERE WAS A TWO HUNDRED FIFTY FOOT IMPERMEABLE CLAY LAYER UNDER THE SITE IN THE LATE NINETEEN EIGHTIES SHE USED TO TELL COMMUNITY GROUPS ABOUT THE MASS OF CLAY WHICH IN THEORY WOULD HOLD IN CHEMICALS AND SHIELD THE GROUNDWATER BELOW I WISH I'D NEVER USED THE TERM SHE SAYS EXPLAINING THAT WHAT SHE ACTUALLY MEANT WAS THAT THERE IS A PRETTY GOOD LAYER OF CLAY DOWN BELOW WHICH ACTUALLY IS PERMEABLE ONE OF THE COMPLAINTS ABOUT MANY SUPERFUND CLEANUPS INCLUDING BRIO IS THAT THE E. P. A. LETS COMPANIES RESPONSIBLE FOR THE DUMPED CHEMICALS HAVE A LOT OF SAY IN HOW THEY ARE CLEANED UP THE CLINTON PROPOSALS WOULDN'T CHANGE THAT HOWEVER BECAUSE THE COST AND TIME INVOLVED IN HAVING E. P. A. DO ALL THE WORK WOULD MAKE IT IMPOSSIBLE TO DO MORE THAN A FEW AT A TIME THE IDEA OF EASING THE STANDARDS DEPENDING ON HOW THE LAND WILL BE USED IN THE FUTURE IS ALSO CONTROVERSIAL AT BRIO LOCAL RESIDENTS HAVE LONG STRUGGLED WITH THE NOTION OF WHAT IT MEANS TO CLEAN THE SITE MANY INITIALLY THOUGHT THAT THE E. P. A. WAS GOING TO CLEANSE THE PLACE COMPLETELY BUT NO TECHNOLOGY EXISTS TO DO THAT UNDER THE E. P. A. PLAN BRIO WOULD REMAIN PRACTICALLY A NO MAN'S LAND FOREVER QUOTE IT WILL BE A WILDLIFE SANCTUARY WITH A FENCE AROUND IT QUOTE SAYS MR. MEYER ADDING THAT THE E. P. A. HAS SELECTED SPECIAL GRASSES TO PLANT THERE AFTER THE INCINERATION IS FINISHED AND THE LAND SMOOTHED OVER APPLE COMPUTER INCORPORATED HOPING TO MAINTAIN SALES AS IT PREPARES TO LAUNCH ANOTHER LINE OF PERSONAL COMPUTERS NEXT MONTH SAID IT CUT PRICES IN THE U. S. BETWEEN SEVEN PERCENT AND EIGHTEEN PERCENT ON MACINTOSH QUADRA COMPUTERS IN ADDITION TO THE PRICE CUTS APPLE SAID U. S. CUSTOMERS BUYING SELECTED QUADRA COMPUTERS WITH QUALIFYING PRINTERS CAN RECEIVE A ONE HUNDRED FIFTY DOLLAR MAIL IN REBATE THESE INCENTIVES FOLLOW APPLE'S RECENT ASSURANCE THAT MACINTOSH QUADRA SYSTEMS CURRENTLY SOLD WILL BE EASILY UPGRADED TO POWERPC THE NEW CHIP DEVELOPED BY APPLE MOTOROLA INCORPORATED AND INTERNATIONAL BUSINESS MACHINES CORPORATION THAT APPLE IS USING TO POWER ITS NEW LINE OF MACINTOSHES ANALYSTS HAVE SAID APPLE CUSTOMERS MIGHT DEFER PURCHASING A NEW COMPUTER UNTIL THE POWERPC MACINTOSHES COME OUT LEAVING EXISTING PRODUCT UNSOLD IN AN EFFORT TO INDUCE SALES THAT HAS BEEN SUCCESSFUL APPLE CUT PRICES REPEATEDLY OVER THE PAST YEAR MAKING THE MACINTOSH MORE COMPETITIVE APPLE ALSO LOWERED PRICES AS MICROSOFT CORPORATION'S WINDOWS OPERATING SYSTEM ENABLED RIVAL I. B. M. COMPATIBLE COMPUTERS TO EMULATE THE MAC'S LOOK AND FEEL WHEN PRESIDENT CLINTON CLAIMED HE COULD FINANCE HIS MASSIVE HEALTH REFORM PLAN WITHOUT BROAD BASED NEW TAXES FEW AGREED NOW ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE OFFICIALLY DISAGREES WITH THE ADMINISTRATION AS WELL MR. REISCHAUER AND HIS C. B. O. STAFF HAVE IMPOSED SOME NEEDED TRUTH IN LABELING ON MR. CLINTON'S PLAN THEIR FIRST MOVE WAS TO QUOTE SCORE QUOTE OR CATEGORIZE THE PRESIDENT'S MANDATORY INSURANCE QUOTE PREMIUMS QUOTE AS REVENUES TO BE RECORDED ON THE FEDERAL BUDGET BOOKS THIS REPRESENTS A MOVE TOWARD BUDGETARY HONESTY SINCE THE PRESIDENT HAD RELEGATED THOSE RELEVANT NUMBERS TO THE OFF BUDGET SHADOWS THE C. B. O. ALSO CONFIRMED THROUGH ITS MATH THAT MR. CLINTON'S PROPOSED HEALTH PLAN IS THE LARGEST ENTITLEMENT PROGRAM EVER TWENTY FIVE PERCENT LARGER THAN THE CURRENT SOCIAL SECURITY SYSTEM BY THE YEAR TWO THOUSAND FOUR THE PRESIDENT'S HEALTH REFORM WILL COST ONE HUNDRED BILLION DOLLARS MORE THAN SOCIAL SECURITY WILL COST IN THAT YEAR BY CORRECTLY LABELING SOME THREE HUNDRED TWENTY BILLION DOLLARS IN EMPLOYER SLASH EMPLOYEE MANDATES AS NEW REVENUES AND BY KEEPING THEM IN THE FEDERAL BUDGET MR. REISCHAUER EXPOSES THE REAL COST TO THE TAXPAYING PUBLIC OF MR. CLINTON'S PLAN IT IS THESE COSTLY NEW MANDATES AS WELL AS THE ADDITIONAL NINETY BILLION DOLLARS IN TOBACCO CORPORATE AND OTHER TAX INCREASES THAT CONSTITUTE THE BULK OF THE NEW BURDEN FACING TAXPAYERS IN OTHER WORDS WHAT MR. REISCHAUER HAS DONE IS TO QUANTIFY FOR THE FIRST TIME THE SIZE OF THE TAX BILL THAT BIG SECTIONS OF THE HEALTH REFORM REPRESENT MR. REISCHAUER REVEALED OTHER AREAS WHERE THE CLINTON PLAN DOESN'T COMPUTE FOR EXAMPLE THE PRESIDENT'S HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA TESTIFIED IN OCTOBER THAT THE ADMINISTRATION WAS ALLOWING A FORTY FIVE BILLION DOLLAR CUSHION IN CASE ITS NUMBERS FOR HEALTH CARE REFORM DID NOT ADD UP YESTERDAY THOUGH MR. REISCHAUER STATED THAT HIS OFFICE'S MATH SHOWED THAT THERE WAS ABSOLUTELY NO SUCH CUSHION AVAILABLE IN THE BUDGET INDEED HE NOTED THAT AMERICA WAS ON THE FLOOR ON HEALTH CARE FUNDING WHAT THIS MEANS IS THAT IF THE ADMINISTRATION SPENDS ONE PENNY BEYOND ITS BUDGET ON HEALTH CARE THE DEFICIT WILL WIDEN IN FACT C. B. O. SHOWS THE CLINTON PLAN INCREASING THE DEFICIT BY SEVENTY BILLION DOLLARS RATHER THAN DECREASING IT BY FIFTY EIGHT BILLION DOLLARS AS THE ADMINISTRATION HAS CLAIMED IT IS OF COURSE NO MYSTERY WHY AFTER SQUEAKING BY THE LARGEST TAX INCREASE IN HISTORY THE ADMINISTRATION HAD BEEN PRESSURING C. B. O. NOT TO COUNT THE EMPLOYER SLASH EMPLOYEE MANDATES AS TAXES THE TAX INCREASES AND TAX MANDATES PROPOSED WOULD EASILY ECLIPSE THE BURDEN IMPOSED UNDER LAST YEAR'S RECORD TWO HUNDRED FORTY EIGHT BILLION DOLLAR TAX INCREASE FORTUNATELY THE C. B. O.'S HONEST LABELING OF MR. CLINTON'S PROPOSED MANDATES ALLOWS TAXPAYERS TO BETTER UNDERSTAND THE MEDICINE THEY ARE BEING PRESCRIBED IN AN ATTEMPT TO IMPROVE OUR HEALTH CARE SYSTEM IT'S MEDICINE THAT SHOULDN'T BE TAKEN ON AN EMPTY STOMACH THE SIDE EFFECTS OF A SIGNIFICANT TAX INCREASE INCLUDE LOST JOBS LOWER WAGE GROWTH AND HEALTH CARE RATIONING DESPITE THE PRESIDENT'S OFFER TO SUBSIDIZE SMALL BUSINESSES TO HELP THEM PAY FOR HIS MANDATE EVEN THE SMALLEST BUSINESS REGARDLESS OF ITS INCOME WOULD BE FORCED TO PAY AT LEAST THREE POINT FIVE PERCENT OF ITS PAYROLL TO HEALTH ALLIANCES UNDER THE CLINTON PLAN AND THAT AMOUNT IS SET TO BE INCREASED OVER TIME WORSE YET THE NEW MANDATE WOULD ONLY COMPOUND THE FINANCIAL BURDEN FOR MANY SMALL BUSINESSES THAT ARE CURRENTLY ABSORBING LAST YEAR'S INCOME TAX INCREASES ACCORDING TO A NEW D. R. I. SLASH MCGRAW HILL ECONOMETRIC STUDY TO BE RELEASED TODAY THE COMBINED IMPACT OF MR. CLINTON'S DEMAND FOR UNIVERSAL COVERAGE AND THE EMPLOYER MANDATE WOULD RESULT IN HUNDREDS OF THOUSANDS OF LOST JOBS A WIDER DEFICIT AND LOWER G. D. P. GROWTH THE ADDITIONAL TAXES PROPOSED TO PAY FOR UNIVERSAL COVERAGE A TOBACCO TAX CORPORATE ASSESSMENTS ADJUSTMENTS TO FLEXIBLE SPENDING ACCOUNTS AND CHANGES IN MEDICAL EXPENSE DEDUCTIONS WOULD STRENGTHEN UNEMPLOYMENT AND HURT THE INCOME OF INDIVIDUALS THEY WOULD EXACERBATE THE NEGATIVE EFFECTS OF FORCING EMPLOYERS TO INSURE THEIR EMPLOYEES THE EMPLOYER MANDATE THE C. B. O.'S HONEST CALCULATIONS OF MR. CLINTON'S FINANCING PROBLEMS CONFIRM THE SUSPICIONS THAT MOST AMERICANS HAD ABOUT THE CLINTON HEALTH REFORM PLAN THERE IS NO FREE LUNCH IF AMERICANS ARE LEGALLY REQUIRED BY GOVERNMENT TO PAY A SET AMOUNT OF MONEY FOR A GOVERNMENT DEFINED PURPOSE AND THEY DON'T HAVE ANY CHOICE ABOUT PAYING THAT MONEY IT'S A TAX UNDER THE PRESIDENT'S MANDATE FINANCING SCHEME GOVERNMENT CONTROLS MORE MONEY LARGELY BY REQUIRING EMPLOYERS TO BE THE COLLECTION AGENCY FOR UNCLE SAM TAXES ACT AS THE MOST IMPORTANT PRICE MECHANISM FOR PEOPLE TO DECIDE HOW MUCH OR HOW LITTLE GOVERNMENT INVOLVEMENT THEY DESIRE AND ARE WILLING TO PAY FOR THE POINT DID DRAW SERIOUS ATTENTION WHEN ADMINISTRATION OFFICIALS TESTIFIED THAT THE CLINTON PLAN MAY FORCE FORTY PERCENT OF AMERICANS TO PAY HIGHER OUT OF POCKET PREMIUMS THAN THEY PAY CURRENTLY THE C. B. O. IS MERELY AN ADVISORY PANEL ITS JOB IS TO ADVISE CONGRESS IN THIS INSTANCE ON THE FINANCING AND BUDGETARY ASPECTS OF HEALTH CARE THE CLINTON ADMINISTRATION AND THE PRESIDENT'S OFFICE OF MANAGEMENT AND BUDGET STILL HAVE THE LAST WORD ON HOW THE FINANCING IS PRESENTED IN THE FEDERAL BUDGET BUT NOW THE CONGRESSIONAL BUDGET OFFICE'S MORE ACCURATE MATH AND BUDGET RECORDING OF THE MAJOR FINANCING FOR THE PRESIDENT'S HEALTH CARE OVERHAUL WILL MAKE IT EASIER FOR AMERICANS TO DECIDE IF THEY WANT TO TAKE THE PRESIDENTIAL MEDICINE MR. MERSKI AN ECONOMIST IS DIRECTOR OF FISCAL POLICY FOR CITIZENS FOR A SOUND ECONOMY IN WASHINGTON YOUR JANUARY TWENTY FIRST PAGE ONE ARTICLE QUOTE PAYING THE PRICE QUOTE DOES NOT REFLECT THE WHOLE STORY AT LEAST AS IT APPLIES TO THE THE GUARDIAN THE ARTICLE STATED THAT THIRTY INSURANCE AGENTS FROM FOUR COMPANIES WERE FINED OR SUSPENDED LAST YEAR FOR CHURNING INSURANCE POLICIES GUARDIAN LIFE WAS LISTED AS ONE OF THESE COMPANIES IN THE INTEREST OF FAIRNESS LET US REVIEW THE RECORD THE NEW YORK STATE INSURANCE DEPARTMENT IN ITS JANUARY FEBRUARY NINETEEN NINETY THREE BULLETIN LISTED THE REVOCATION OF A GUARDIAN AGENT'S LICENSE FOR VIOLATION OF REGULATION SIXTY REQUIRED DISCLOSURE IN A REPLACEMENT SALE THE VIOLATION REFERRED TO OCCURRED IN NINETEEN EIGHTY NINE THE CITED AGENT'S LICENSE TO REPRESENT GUARDIAN LIFE WAS TERMINATED ON MAY FIFTEENTH NINETEEN NINETY BARRY DILLER GOT A BLUNT MESSAGE YESTERDAY FROM LEON COOPERMAN ONE OF THE LARGEST SHAREHOLDERS OF PARAMOUNT COMMUNICATIONS INCORPORATED YOU'RE LOSING IT CAME DURING A MEETING TO PROMOTE THE TAKEOVER BID FOR PARAMOUNT BY MR. DILLER'S Q. V. C. NETWORK INCORPORATED OVER CROISSANTS AND COFFEE AT THE POSH FIFTH AVENUE OFFICES OF ALLEN AND COMPANY Q. V. C.'S INVESTMENT BANKER UNLIKE A POLITICAL ELECTION WHICH RIDES ON MILLIONS OF INDIVIDUAL DECISIONS THE PARAMOUNT CONTEST WILL BE DECIDED BY PEOPLE LIKE MR. COOPERMAN THE FEW HUNDRED TRADERS AND INSTITUTIONAL INVESTORS WHO CONTROL A MAJORITY OF THE STOCK MR. DILLER AND HIS BIDDING RIVAL VIACOM INCORPORATED'S CHAIRMAN SUMNER REDSTONE ARE IN THE HOMESTRETCH OF THEIR HARD FOUGHT FIVE MONTH OLD BATTLE AND THEY ARE FURIOUSLY COURTING BIG INVESTORS LIKE MR. COOPERMAN WHO MUST DECIDE WHICH BID TO ACCEPT IN FACE TO FACE MEETINGS MR. COOPERMAN A WALL STREET VETERAN WHOSE OMEGA ADVISERS INCORPORATED OWNS FOUR POINT FIVE MILLION PARAMOUNT SHARES TOLD MR. DILLER THAT OMEGA WILL TENDER ITS THREE POINT EIGHT PERCENT PARAMOUNT STAKE TO VIACOM ON MONDAY UNLESS Q. V. C. BOLSTERS THE VALUE OF Q. V. C. STOCK THAT MAKES UP PART OF THE Q. V. C. OFFER VIACOM HOLDS AN EDGE IN THE BIDDING BECAUSE IT HAS OFFERED A SECURITY THAT TAKES SOME OF THE RISK OUT OF ITS BID'S STOCK COMPONENT EMANUEL GERARD AN ENTERTAINMENT ANALYST WHO ATTENDED THE MEETING SAID QUOTE BARRY IS A SMART MAN AND HANDLED HIMSELF WELL BUT EVERYONE IN THE GROUP TOLD BARRY THAT IF HE DOESN'T DO ANYTHING HE'S GOING TO LOSE MR. DILLER BOUND BY BIDDING RULES BARRING HIM FROM CHANGING HIS OFFER UNLESS NEITHER SIDE WINS A MAJORITY OF PARAMOUNT SHARES ON FEBRUARY FOURTEENTH SAID HE COULDN'T MAKE ANY PROMISES BUT HE AND EXECUTIVES OF COMCAST CORPORATION A Q. V. C. INVESTOR HINTED THEY MIGHT SAY MORE ON FEBRUARY THAT WAS THE FIRST MEETING OF THE DAY WHICH BEGAN AT TEN FIFTEEN A. M. AT A SECOND MEETING AT ELEVEN FORTY FIVE A. M. MR. DILLER AND HIS PARTNERS WENT A BIT FURTHER EDWARD HATCH AN ANALYST FROM U. B. S. SECURITIES INCORPORATED WHO WAS PRESENT SAID THEY SAID THEY ARE CONSIDERING SOME MECHANISM BY WHICH BELLSOUTH AND PERHAPS THE OTHER Q. V. C. INVESTORS WOULD BUY A CERTAIN AMOUNT OF STOCK AT A STATED PRICE OVER A CERTAIN NUMBER OF YEARS WHILE MR. DILLER TALKS TO INVESTORS IN MANHATTAN MR. REDSTONE AND A TEAM OF VIACOM EXECUTIVES ARE CALLING ON INVESTORS THIS WEEK IN SAN FRANCISCO LOS ANGELES AND NEW YORK ONE OF HIS PLANNED STOPS WAS CAPITAL GROUP INCORPORATED IN LOS ANGELES HOME OF THE INFLUENTIAL MEDIA STOCK ANALYST GORDON CRAWFORD WHO WAS A Q. V. C. SUPPORTER BEFORE HE SOLD MOST OF HIS PARAMOUNT STOCK MR. REDSTONE IS MAKING HIS CASE FOR THE COMBINATION OF PARAMOUNT AND VIACOM THE CABLE T. V. PROGRAMMER THAT OWNS NICKELODEON AND M. T. V. AND BLOCKBUSTER ENTERTAINMENT CORPORATION THE VIDEO RENTAL CHAIN VIACOM AGREED TO BUY TO FINANCE A HIGHER PARAMOUNT BID ALTHOUGH Q. V. C. AND VIACOM MADE THEIR FINAL OFFERS FEBRUARY FIRST THEY ARE HOLDING MEETINGS KNOWN AS ROAD SHOWS DESIGNED TO PROMOTE THEIR STOCK THAT'S BECAUSE BOTH OFFERS INCLUDE EQUITY SECURITIES WHOSE VALUE FLUCTUATES ACCORDING TO INVESTORS' VIEW OF HOW WELL EACH BIDDER WOULD DO WITH PARAMOUNT MR. DILLER ISN'T LOSING ONLY AMONG SHORT TERM TRADERS LIKE MR. COOPERMAN MARIO GABELLI AN INSTITUTIONAL INVESTOR WHOSE FUNDS OWN ROUGHLY FOUR MILLION PARAMOUNT SHARES HAS SAID HE PLANS TO TENDER AT LEAST TWO POINT FIVE MILLION SHARES TO VIACOM SOME INVESTORS SAY THEY BUY MR. DILLER'S STORY THAT HE WOULD BE A SUPERIOR MANAGER OF THE PARAMOUNT ASSETS I THINK BARRY COULD DO A LOT WITH IT SAYS RANDALL HAASE A PORTFOLIO MANAGER AT ALLIANCE CAPITAL MANAGEMENT WHO PLANS TO TENDER THREE HUNDRED THOUSAND PARAMOUNT SHARES TO Q. V. C. DILLER IS A VERY CREATIVE INDIVIDUAL I WOULD LIKE Q. V. C. TO BE THE VICTOR AND TURN AROUND PARAMOUNT SOME TRADERS ARE SKEPTICAL OF Q. V. C.'S PROMISES WHICH THEY VIEW AS AIMED AT SOWING CONFUSION IN ORDER TO THWART VIACOM FROM ENDING THE CONTEST BY OBTAINING FIFTY POINT ONE PERCENT OF PARAMOUNT'S ONE HUNDRED TWENTY MILLION SHARES OUTSTANDING QUOTE ANYONE WHO DOESN'T TENDER TO VIACOM BECAUSE OF VAGUE PROMISES BY Q. V. C. IS CRAZY QUOTE SAID MARK DICKSTEIN PRESIDENT OF DICKSTEIN PARTNERS INCORPORATED A PARAMOUNT HOLDER COTTON FUTURES PRICES SOARED IN A TRADING SESSION THAT WAS CUT SHORT BY HEAVY SNOW IN NEW YORK AT NEW YORK'S COTTON EXCHANGE COTTON FOR MARCH DELIVERY WAS UP ONE POINT EIGHT SEVEN CENTS TO SEVENTY SEVEN POINT FOUR SEVEN A POUND JOINING THE COTTON EXCHANGE IN CLOSING EARLY YESTERDAY WERE THE COMMODITY EXCHANGE WHICH TRADES PRECIOUS METALS FUTURES CONTRACTS AND THE NEW YORK MERCANTILE EXCHANGE WHICH TRADES ENERGY CONTRACTS THE FOURTH NEW YORK MARKET THE COFFEE SUGAR AND COCOA EXCHANGE CLOSED AT ITS NORMAL TIME OF ONE FORTY THREE P. M. E. S. T. COTTON PRICES HAD SAGGED MONDAY ON NERVOUSNESS ABOUT THE U. S. STOCK MARKET'S BIG DECLINE THE PREVIOUS WEEK BUT YESTERDAY BUYERS RETURNED TO THE COTTON MARKET IN FORCE LURED PRIMARILY BY NEWS REPORTS THAT CONTINUED TO SUGGEST AN EXTREMELY TIGHT GLOBAL SUPPLY OF COTTON INDIA A TRADITIONAL EXPORTER OF COTTON THAT HAD BEEN EXPECTED TO COMPETE AGGRESSIVELY WITH U. S. EXPORTERS FOR THE WORLD'S DEMAND FOR THE FIBER SUSPENDED DELIVERY OF COTTON IT HAD CONTRACTED TO SELL INDIA ORIGINALLY HAD CONTRACTED TO EXPORT FIVE HUNDRED THOUSAND BALES OF COTTON THIS SEASON SAID SANDRA KAUL SENIOR ANALYST FOR SMITH BARNEY SHEARSON IN JANUARY THE COUNTRY ANNOUNCED IT WOULD SELL ONE HUNDRED THIRTY THOUSAND BALES LESS THAN EXPECTED YESTERDAY INDIA SAID IT WOULD WITHHOLD AN ADDITIONAL TWO HUNDRED THOUSAND BALES IT HAD AGREED TO EXPORT MS. KAUL SAID ANALYSTS EXPECT MILLS IN THE FAR EAST AND EUROPE WHICH HAD CONTRACTED TO BUY INDIA'S COTTON NOW TO RETURN TO THE WORLD MARKET TO QUOTE RE BUY QUOTE THE COTTON THEY NEED U. S. EXPORTERS ARE LIKELY TO WIN MUCH OF THAT BUSINESS BECAUSE THE U. S. IS ONE OF THE FEW COUNTRIES THAT STILL MAINTAINS SALABLE STOCKS OF HIGH QUALITY COTTON AND U. S. COTTON REMAINS FAVORABLY PRICED COMPARED WITH COTTON AVAILABLE OVERSEAS PAKISTAN ANOTHER MAJOR INTERNATIONAL COMPETITOR FOR THE U. S. COTTON EXPORTING BUSINESS HAS HARVESTED A MUCH SMALLER THAN EXPECTED CROP THIS YEAR LAST AUGUST THE BEGINNING OF THE NINETEEN NINETY THREE TO NINETY FOUR GROWING SEASON PAKISTANI COTTON PRODUCTION HAD BEEN FORECAST AT ABOUT EIGHT POINT SEVEN MILLION BALES BUT NOW THE U. S. AGRICULTURE DEPARTMENT IS PREDICTING A MUCH SMALLER PAKISTANI CROP OF ABOUT SIX POINT FIVE MILLION BALES CHINA AND AUSTRALIA TWO OTHER MAJOR COTTON PRODUCERS ARE ALSO PROJECTED TO HAVE SMALLER THAN EXPECTED CROPS ENERGY MARCH CRUDE OIL FUTURES FELL FOUR CENTS A BARREL TO FIFTEEN DOLLARS AND TWENTY ONE CENTS BUT OUTER MONTHS FINISHED HIGHER IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE WHICH CLOSED MORE THAN AN HOUR EARLY BECAUSE OF A SNOWSTORM OTHER PETROLEUM FUTURES CONTRACTS WERE HIGHER AS WELL WITH HEATING OIL ESPECIALLY GETTING A BOOST FROM THE VERY WEATHER THAT TRUNCATED THE TRADING SESSION THE MARCH HEATING OIL CONTRACT GAINED ZERO POINT FIVE NINE CENTS TO CLOSE AT FIFTY POINT FIVE SEVEN CENTS A GALLON MEANWHILE TRADERS WERE ANTICIPATING THE WEEKLY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE TO SHOW ANOTHER BUILD IN U. S. CRUDE INVENTORIES AND A SLACKENING IN REFINERY USAGE WHICH WOULD PUT DOWNWARD PRESSURE ON CRUDE PRICES TODAY MARCH NATURAL GAS JUMPED SIX POINT FOUR CENTS TO TWO POINT FOUR ONE ONE DOLLARS PER MILLION BRITISH THERMAL UNITS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET ON THE SEVERE WEATHER AND SUPPLY QUESTIONS PRECIOUS METALS THE PRICE OF GOLD REGAINED SOME OF THE GROUND IT HAS LOST IN RECENT DAYS AS PHYSICAL DEMAND FOR THE METAL RETURNED TO THE MARKET AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY ROSE THREE DOLLARS AND FORTY CENTS TO THREE HUNDRED EIGHTY FOUR DOLLARS AND TEN CENTS AN OUNCE WHILE THE MARCH SILVER FUTURES CONTRACT WAS UP THREE CENTS TO FIVE DOLLARS AND TWENTY SEVEN CENTS AN OUNCE THE FEDERAL RESERVE'S TIGHTENING OF THE SHORT TERM FED FUNDS RATE ON FRIDAY WEIGHED HEAVILY ON PRECIOUS METALS PRICES BECAUSE IT WAS SEEN AS AN ANTI INFLATIONARY STEP INFLATION OR THE THREAT OF IT TENDS TO EXERT UPWARD PRESSURE ON METALS PRICES YESTERDAY BARGAIN HUNTING BUYERS HELPED TO BRING GOLD'S PRICE UP FROM ITS MONDAY LOWS ARE TEXANS STARTING TO WEAN THEMSELVES FROM LIGHT BEERS IF SALES OF SHINER BOCK ARE ANY CLUE THEY JUST MIGHT BE SALES OF THE DARK HEAVY BEER ROSE ABOUT FIFTY PERCENT IN NINETEEN NINETY THREE SAYS SPOETZL BREWERY OWNER CARLOS ALVAREZ HIS EIGHTY FOUR YEAR OLD BREWERY IN SHINER SOLD A RECORD SEVENTY THREE THOUSAND BARRELS LAST YEAR OR MORE THAN ONE MILLION CASES MOST OF IT IN TEXAS AND MOST OF IT SHINER BOCK QUOTE SPECIALTY BEERS ARE GROWING IN TEXAS QUOTE MR. ALVAREZ SAYS BUT TEXANS HAVE A LONG WAY TO GO BEFORE THEY DRINK AS MUCH SPECIALTY BEER ANYTHING BUT A TYPICAL AMERICAN LAGER AS OTHER AMERICANS SPECIALTY BEERS ACCOUNT FOR LESS THAN ZERO POINT TWO PERCENT OF BEER SOLD IN TEXAS NATIONWIDE THEY APPROACH ONE PERCENT OF THE MARKET SAYS FRANK WALTERS RESEARCH DIRECTOR AT IMPACT A NEW YORK BEVERAGE PUBLICATION LIGHT BEERS HOG MORE OF THE MARKET IN TEXAS THAN ANY OTHER STATE PERHAPS BECAUSE OF THE HEAT ONE OF EVERY TWO BEERS IMBIBED BY TEXANS IS A LIGHT BREW VERSUS FORTY PERCENT OF THE NATIONAL MARKET THE NUMBER ONE BEER IN TEXAS IS MILLER LITE ELSEWHERE IT'S BUDWEISER SHINER'S BIGGEST RIVALS IN THE TEXAS SPECIALTY BEER MARKET ARE DOING WELL TOO THOUGH THEIR NUMBERS ARE SMALL IN STATE SALES OF KILLIAN'S IRISH RED FROM COORS BREWING COMPANY OF GOLDEN COLORADO ROSE ABOUT FIFTY PERCENT IN NINETEEN NINETY THREE TO FOUR THOUSAND BARRELS WHILE SALES OF SAMUEL ADAMS FROM BOSTON BEER COMPANY OF BOSTON NEARLY TRIPLED TO THIRTEEN THOUSAND BARRELS MR. WALTERS SAYS OTHER BIG GAINERS INCLUDED TWO CALIFORNIA BEERS ANCHOR STEAM UP THIRTEEN PERCENT TO FIVE HUNDRED TWENTY SIX BARRELS AND SIERRA NEVADA WHICH ENTERED THE TEXAS MARKET IN NINETEEN NINETY THREE AND SOLD ONE HUNDRED FIFTY BARRELS THOSE NUMBERS ARE TINY COMPARED WITH MILLER LITE'S THREE MILLION TEXAS BARRELS BUT THERE'S HOPE FOR MARKETERS OF FULL CALORIE BEERS MILLER LITE'S TEXAS SALES FELL SIX PERCENT LAST YEAR SHOWING THE SAME WEAKNESS AS ELSEWHERE AND MR. ALVAREZ THINKS THE INTRODUCTION OF BREWPUBS BREWERY RESTAURANT COMBINATIONS APPROVED BY THE LEGISLATURE LAST YEAR WILL FURTHER HELP PULL TEXANS AWAY FROM LIGHT BEER IT'S GOING TO INCREASE THE EDUCATION ON DIFFERENT STYLES OF BEER HE SAYS SOMETHING HAS GONE AWRY IN RURAL TEXAS' QUEST FOR ECONOMIC DEVELOPMENT IN HIDALGO FUNDS EARMARKED FOR THE CREATION OF NEW INDUSTRIAL JOBS WERE USED TO BUILD A STATUE OF A GIANT KILLER BEE IN CAMERON OFFICIALS ARE USING SIMILAR FUNDS TO KEEP THE LOCAL HOSPITAL AFLOAT AND IN KEMAH OFFICIALS APPROVED USING SUCH MONEY FOR THE PURCHASE AND STRINGING OF CHRISTMAS LIGHTS IN THE TOWN QUOTE IT'S KIND OF A CONSTANT BATTLE TO KEEP THIS MONEY RESERVED FOR WHAT IT WAS INTENDED FOR QUOTE SAYS SENATOR BILL RATLIFFE A REPUBLICAN FROM MOUNT PLEASANT THERE ARE GOING TO BE CASES WHERE PEOPLE DON'T USE IT WISELY IF ANYBODY KNOWS THE PURPOSE OF THIS MONEY IT'S MR. RATLIFFE IN NINETEEN EIGHTY NINE HE SPONSORED THE LEGISLATION THAT GAVE TEXAS' SMALLER CITIES THOSE IN COUNTIES WITH FEWER THAN FIVE HUNDRED THOUSAND PEOPLE THE OPPORTUNITY TO COLLECT UP TO A ONE HALF CENT SALES TAX PROVIDED THE PROCEEDS WERE USED FOR THE CREATION OF INDUSTRIAL JOBS THE LAW WAS AMENDED TWO YEARS LATER PERMITTING SOME LARGER CITIES TO COLLECT THE TAX AND USE IT FOR A BROADER RANGE OF PURPOSES ARLINGTON'S ONE HUNDRED NINETY MILLION DOLLARS STADIUM WAS PRIMARILY FINANCED BY THE TAX CURRENTLY ONE HUNDRED NINETEEN CITIES LEVY THE SALES TAX WHICH HAS GENERATED MORE THAN ONE HUNDRED FIFTY MILLION DOLLARS SINCE NINETEEN EIGHTY NINE AND LAST MONTH FIFTEEN NEW CITIES VOTED TO BEGIN COLLECTING THE TAX THE INCENTIVES HAVE BECOME A VERY BIG PART OF ECONOMIC DEVELOPMENT IN TERMS OF RECRUITING COMPANIES AND IN KEEPING THE ONES YOU HAVE SAYS MICHAEL BOURN EXECUTIVE DIRECTOR OF THE AMARILLO ECONOMIC DEVELOPMENT CORPORATION THE AGENCY THAT OVERSEES THE SPENDING OF THE SALES TAX THEY ARE PARTICULARLY NECESSARY TOOLS IN COMMUNITIES THAT ARE OUTSIDE THE MAJOR URBAN AREAS MR. BOURN SAYS THAT AMARILLO HAS SPENT ABOUT TWENTY MILLION DOLLARS TO SPONSOR TWENTY FOUR PROJECTS THAT ARE EXPECTED TO CREATE FOUR THOUSAND FOUR HUNDRED DIRECT AND INDIRECT JOBS BUT CONCERN THAT THE TAX IS BEING MISUSED HAS RAISED THE POSSIBILITY THAT THE LEGISLATURE WILL CRACK DOWN EITHER BY REQUIRING STATE APPROVAL FOR EXPENDITURES IMPOSING STRICTER GUIDELINES OR DOING AWAY WITH THE TAX ALTOGETHER IT CAN AND SHOULD BE A VALUABLE TOOL FOR THE ECONOMIC DEVELOPMENT OF TEXAS SAYS BILL R. SHELTON MANAGING DIRECTOR OF THE CORNERSTONE GROUP A FORT WORTH CONSULTING FIRM THAT HAS CONDUCTED SURVEYS ON CITIES' USE OF THE TAX THE ABUSES UNFORTUNATELY ARE NOT GOING UNNOTICED THOSE ABUSES CRITICS SAY COVER A WIDE RANGE SOME TOWNS THEY SAY SPEND MONEY ON PROJECTS THAT APPEAR TO BE CLEARLY OUTSIDE THE PURPOSE OF CREATING INDUSTRIAL JOBS BUYING CHRISTMAS LIGHTS FOR INSTANCE OR EXPANDING THE COUNTY COURTHOUSE BUT A BIGGER PROBLEM CRITICS CHARGE IS THAT MANY SMALL TOWNS DON'T HAVE THE EXPERTISE TO EVALUATE INVESTMENT OPTIONS AND END UP THROWING MONEY AWAY ON QUESTIONABLE PROJECTS THAT SOME SUGGEST IS WHAT HAPPENED IN COPPERAS COVE A CITY OF TWENTY FOUR THOUSAND NEAR KILLEEN THE PROBLEMS STARTED WHEN THE BOARD OF THE LOCAL ECONOMIC DEVELOPMENT CORPORATION GUARANTEED A FOURTEEN THOUSAND DOLLAR LOAN TO A LOCAL PHOTOGRAPHY STUDIO THE STUDIO OFFICIALS SAY WANTED TO HIRE ANOTHER EMPLOYEE AND PURCHASE NEW EQUIPMENT IN ORDER TO EXPAND INSTEAD THE COMPANY DEFAULTED ON THE LOAN AND LEFT TOWN WITH THE COLLATERAL BUT THAT'S NOT THE WORST OF IT THE BOARD LAST YEAR ALSO BACKED A LOAN FOR MORE THAN ONE MILLION DOLLARS FOR NO TOUCH INCORPORATED A START UP CONTAINER MANUFACTURING COMPANY SIX MONTHS LATER THE BOARD GUARANTEED ANOTHER THREE HUNDRED THOUSAND DOLLAR LOAN THIS ONE FROM THE LOCAL BANK AND IN ANTICIPATION OF THE SUPPORT OPERATIONS NO TOUCH WOULD NEED THE BOARD GUARANTEED A FORTY NINE THOUSAND DOLLAR LOAN FOR THE COVE TOOL AND DIE MANUFACTURING COMPANY A COPPERAS COVE FIRM BUT LATE LAST YEAR CITY OFFICIALS SAY NO TOUCH FILED FOR REORGANIZATION UNDER THE BANKRUPTCY LAWS COVE TOOL QUICKLY FOLLOWED AND NOW THE COPPERAS COVE ECONOMIC DEVELOPMENT CORPORATION IS REPAYING ALL THE DEBT THE EPISODE HAS ALL BUT DEPLETED THE CITY'S ECONOMIC DEVELOPMENT FUNDS AND PROMPTED CALLS TO REPEAL THE TAX AND DISBAND THE CORPORATION AFTER TWO YEARS OF COLLECTING AN ESTIMATED ONE POINT TWO MILLION DOLLARS IN TAX FUNDS THE CORPORATION IS LEFT WITH A BALANCE OF ABOUT THIRTY THREE THOUSAND FIVE HUNDRED DOLLARS AND IT STILL HAS TO PAY OFF MOST OF THE ONE MILLION DOLLAR LOAN TWO WEEKS AGO THE ECONOMIC DEVELOPMENT BOARD FIRED EXECUTIVE DIRECTOR AND FORMER CITY MAYOR JIM FRENCH QUOTE WE CREATED THE ECONOMIC DEVELOPMENT CORPORATION IN HOPES OF DIVERSIFYING OUR ECONOMY QUOTE SAYS TERESA CLEGHORN EDITOR OF THE COPPERAS COVE LEADER PRESS THE TOWN'S WEEKLY NEWSPAPER INSTEAD OF HAVING HUNDREDS OF NEW JOBS WE HAVE A LOT OF PEOPLE WHO ARE UNEMPLOYED BECAUSE THE COMPANIES THEY WERE WORKING FOR ARE IN BANKRUPTCY OTHER TOWNS HAVE BEEN CRITICIZED FOR PUTTING THE TAX MONEY INTO PROJECTS THAT ARE OUTSIDE THE LEGISLATION'S REQUIREMENTS WHETHER THE SPENDING IS ILLEGAL HASN'T BEEN TESTED BUT THERE'S NO QUESTION THAT SOME OF THE PROJECTS HAVE BEEN WELL ODD IN HIDALGO THE CITY SPENT NEARLY TWENTY THOUSAND DOLLARS IN NINETEEN NINETY TWO TO ERECT A FIBERGLASS AND STEEL STATUE OF THE KILLER BEE HIDALGO SAY CITY OFFICIALS WAS THE PLACE WHERE THE AFRICANIZED HONEY BEES FIRST CROSSED INTO THE U. S. IN NINETEEN NINETY THE BIG BEE WAS FUNDED WITH ECONOMIC DEVELOPMENT TAX FUNDS UNDER PROVISIONS THAT ALLOW SOME OF THE MONEY TO BE SPENT ON MARKETING AND PROMOTION HIDAGLO OFFICIALS CONCEDE THE BEE PROBABLY SEEMS SILLY TO OUTSIDERS BUT THEY MAKE NO APOLOGIES THE BEE THE CITY CLAIMS HAS GENERATED MUCH MORE THAN TWENTY THOUSAND DOLLARS WORTH OF NATIONAL PUBLICITY AND TOUR BUSES NOW STOP TO SEE THE BEE WE HAVE OVER TWENTY FIVE THOUSAND CARS THAT COME ACROSS THE INTERNATIONAL BRIDGE EVERY DAY GOING TO AND FROM MCALLEN BUT THEY JUST DRIVE THROUGH OUR TOWN SAYS JOE VERA PRESIDENT OF THE HIDALGO CHAMBER OF COMMERCE WE FEEL LIKE WE'VE DETOURED SOME OF THAT TRAFFIC IN THE EAST TEXAS CITY OF ATHENS ABOUT THREE MILLION DOLLARS IN SALES TAX FUNDS WERE USED TO WOO A FISH HATCHERY BUT WHAT MADE THIS DEAL UNUSUAL IS THAT IT IS A STATE OPERATED FISH HATCHERY OTHER CITIES SUCH AS ABILENE AND AMARILLO HAVE USED THE TAX FUNDS TO COURT STATE OPERATED PRISONS BUT THE FISH HATCHERY HAS PROMPTED THE MOST CRITICISM BECAUSE PRISONS AT LEAST CAN CREATE HUNDREDS OF JOBS THE FISH HATCHERY SCHEDULED FOR GROUNDBREAKING THIS MONTH SHOULD CREATE NINETEEN JOBS IT IS CERTAINLY ON THE MARGINS OF GOOD USE FOR IT SAYS SENATOR RATLIFFE WHO WHILE RELUCTANT TO CRITICIZE USE OF THE MONEY FOR PRISONS CONCEDES IT'S A LITTLE IRONIC THEY WOULD USE IT TO ATTRACT STATE PAYROLL ATHENS OFFICIALS ADMIT THREE MILLION DOLLARS FOR NINETEEN JOBS PROBABLY SOUNDS LIKE A BAD DEAL BUT THEY ARGUE THAT THE FISH HATCHERY WILL BOOST TOURISM ALTHOUGH CITY OFFICIALS SAY ATHENS NOW ATTRACTS ABOUT SIXTY THOUSAND TOURISTS A YEAR THEY CLAIM A STUDY FOUND THE FISH HATCHERY WOULD BOOST THAT NUMBER BY THREE HUNDRED THOUSAND TO FIVE HUNDRED THOUSAND PEOPLE THIS PART OF TEXAS IS WELL KNOWN FOR ITS BASS FISHING SAYS DON MANNING ATHENS CITY MANAGER WHO SAYS THAT THE CITY ALSO HAS USED ITS SALES TAX MONEY TO ATTRACT A MEDICAL SUPPLY COMPANY ONE OF THE MOST QUESTIONABLE USES OF THE TAX FUNDS IS IN CAMERON WHERE ALL OF THE CITY'S ESTIMATED THREE HUNDRED THIRTY NINE THOUSAND DOLLARS IN SALES TAX COLLECTIONS HAS GONE TOWARD PAYING OFF SIX HUNDRED THOUSAND DOLLARS IN OPERATING BONDS FOR CENTRAL TEXAS HOSPITAL TEXAS ATTORNEY GENERAL DAN MORALES HAS ISSUED AN OPINION STATING THAT THE TAX MONEY CAN NOT BE USED TO SUPPORT HOSPITALS BUT THE PRACTICE CONTINUES QUOTE THEY JUSTIFIED IT BY SAYING THAT IF THERE WASN'T A HOSPITAL THAT INDUSTRY WOULDN'T STAY OR WOULDN'T COME INTO CAMERON QUOTE SAYS JANET SHEGUIT TAX ASSESSOR COLLECTOR ONE OTHER CONCERN ABOUT THE WAY THE TAX HAS WORKED OUT TEXAS TOWNS AREN'T ONLY COMPETING WITH OTHER STATES FOR NEW JOBS THEY'RE COMPETING WITH EACH OTHER THE CITY OF ALLEN FOR INSTANCE SCORED BIG WHEN IT CONVINCED T. R. W. INFORMATION SYSTEMS A UNIT OF T. R. W. INCORPORATED CLEVELAND TO CONSOLIDATE OFFICES PREVIOUSLY LOCATED IN RICHARDSON DALLAS AND ANAHEIM CALIFORNIA IN ALLEN BRINGING WITH IT ONE THOUSAND JOBS BUT ALLEN'S SUCCESS CAME AT THE EXPENSE OF DALLAS AND RICHARDSON NEITHER OF WHICH ARE ELIGIBLE TO COLLECT THE TAX IN SOME WAYS IT GIVES US A MUCH GREATER ADVANTAGE OVER CITIES THAT DON'T HAVE THE TAX SAYS DAVID PITSTICK DIRECTOR OF THE ALLEN ECONOMIC DEVELOPMENT CORPORATION BUT IF WE DIDN'T HAVE IT COULD WE COMPETE WITH BIGGER CITIES NO WAY DESPITE ALL THE PROBLEMS SENATOR RATLIFFE IS HESITANT TO CALL FOR CHANGES IN THE LAW THE BOTTOM LINE HE SAYS IS THAT ELECTED CITY OFFICIALS DECIDE HOW TO SPEND THE MONEY EITHER BY THEMSELVES OR THROUGH THEIR APPOINTED REPRESENTATIVE I ASSUME THESE PLACES HAVE VOTERS SENATOR RATLIFFE SAYS AND IF THEY THINK THIS MONEY IS NOT BEING SPENT THE WAY IT OUGHT TO BE SOMEBODY OUGHT TO BE CALLED TO ANSWER FOR IT BUT AS A RESULT OF THE CONCERNS STATE ECONOMIC DEVELOPMENT OFFICIALS ARE WORKING WITH CITIES TO CLARIFY THE DOS AND DON'TS THE TEXAS INDUSTRIAL DEVELOPMENT COUNCIL INCORPORATED WHOSE MEMBERS INCLUDE ECONOMIC DEVELOPMENT CORPORATIONS AND CHAMBERS OF COMMERCE IS CREATING A SPECIAL NEWSLETTER JUST FOR THOSE CITIES THAT COLLECT THE TAX TWO INFORMATION MEETINGS IN PLANO AND SAN ANTONIO ALSO ARE SCHEDULED IN THE COMING MONTHS AND THE GROUP IS SOLICITING INPUT FROM MEMBERS TO DETERMINE WHETHER TO LOBBY FOR CHANGES IN THE LAW DURING THE NEXT LEGISLATIVE SESSION THE TAX QUOTE IS BEGINNING TO BE JUST ANOTHER REVENUE SOURCE FOR THE CITY IT'S NOT BEING USED TO CREATE NEW JOBS QUOTE SAYS JOE NEWMAN EXECUTIVE DIRECTOR OF THE INDUSTRIAL DEVELOPMENT COUNCIL WE'RE VERY CONCERNED THAT IT'S GOING TO DILUTE THE ORIGINAL PURPOSE OF THE BILL QUITE A BIT SO FAR THE FEDERAL RESERVE'S MOVE TO BOOST SHORT TERM INTEREST RATES AND REDUCE INFLATIONARY PRESSURES HAS BEEN BITTER MEDICINE FOR U. S. BOND MARKETS IT'S TOO EARLY TO TELL IF IT'S WORKING BUT NERVOUS INVESTORS AND MONEY MANAGERS WHO MUST MAKE DECISIONS NOW ON WHERE TO PUT THEIR MONEY ARE SELLING BONDS PUSHING PRICES LOWER LACKLUSTER DEMAND AT YESTERDAY'S SEVENTEEN BILLION DOLLAR AUCTION OF THREE YEAR NOTES BY THE TREASURY THE FIRST OF THREE AUCTIONS THAT COMPRISE ITS QUARTERLY REFUNDING WAS ONE SIGN OF HOW DISTASTEFUL THE MEDICINE HAS BEEN ANOTHER SIGN WAS THE DROP IN BOND PRICES THE BENCHMARK THIRTY YEAR TREASURY BOND FELL MORE THAN THREE QUARTERS POINT OR MORE THAN SEVEN DOLLARS AND FIFTY CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY SEVEN AND TEN THIRTY SECONDS SINCE THURSDAY WHEN SPECULATION ABOUT A RATE INCREASE ROILED THE MARKET THE PRICE OF THE THIRTY YEAR BOND HAS FALLEN MORE THAN TWO POINTS ITS YIELD WHICH MOVES INVERSELY TO ITS PRICE ROSE TO SIX POINT FOUR FIVE PERCENT THE HIGHEST SINCE AUGUST OF LAST YEAR ASSESSING THE MOVE BOND INVESTORS ARE STILL TRYING TO DETERMINE IF THE FED ACTED TOO EARLY TOO LATE OR JUST IN TIME TO KEEP INFLATION FROM RISING AND GOUGING THE VALUE OF THEIR FIXED INCOME HOLDINGS FOR CLUES THEY ARE LOOKING TO THE JANUARY PRODUCER PRICE INDEX AN INFLATION MEASURE WHICH IS SCHEDULED TO BE RELEASED ON FRIDAY SOME ANALYSTS FEAR SENTIMENT COULD WORSEN AS THE TREASURY SELLS ANOTHER THIRTY THREE BILLION DOLLARS OF TEN YEAR NOTES TODAY AND THIRTY YEAR BONDS TOMORROW QUOTE THE PSYCHOLOGICAL CONDITION OF THE MARKET CONTINUES TO BE ABSOLUTELY ABYSMAL QUOTE SAYS F. WARD MCCARTHY MANAGING DIRECTOR AT STONE AND MCCARTHY RESEARCH ASSOCIATES OF PRINCETON N. J. DISORIENTATION IS A GOOD WAY TO DESCRIBE MARKET SENTIMENT SAYS MATTHEW ALEXY A GOVERNMENT TRADING STRATEGIST AT C. S. FIRST BOSTON INVESTORS DON'T KNOW IF THE FED IS AHEAD OF THE CURVE OR JUST STRUGGLING TO KEEP UP IN ITS BATTLE AGAINST INFLATION PEOPLE ARE RECUPERATING FROM THE FIRST FED TIGHTENING SINCE FEBRUARY NINETEEN EIGHTY NINE AND THEY'RE TRYING TO RECOVER FROM THE DREADFUL PRICE ACTION OF THE PAST WEEK SAYS MR. MCCARTHY THERE IS ALSO SOME CONCERN THAT THE MARKET HAS TO ABSORB ALL THIS SUPPLY HE ADDS MANY INVESTORS WERE LOOKING TO THE THREE YEAR NOTE AUCTION FOR EVIDENCE THAT THE MARKET WAS REGAINING STRENGTH SAYS MR. MCCARTHY BUT THAT DIDN'T HAPPEN ALTHOUGH ON THE SURFACE THE AUCTION APPEARED TO DRAW DECENT DEMAND TRADERS SAID MUCH OF THE BUYING WAS TO CLOSE OUT SHORT POSITIONS THOSE POSITIONS INVOLVE TRADERS WHO SOLD BORROWED THREE YEAR NOTES IN HOPES THAT PRICES WOULD DROP ALLOWING THEM TO REPLACE THEIR BORROWINGS WITH CHEAPER NOTES BOUGHT AT THE AUCTION AND POCKET THE DIFFERENCE OMINOUSLY THERE WAS LITTLE INTEREST IN THE THREE YEAR NOTES FROM BANKS AND OTHER TRADITIONAL TREASURY BUYERS SAYS MR. MCCARTHY THE TREASURY DEPARTMENT AWARDED ITS SEVENTEEN BILLION DOLLAR OFFERING OF THREE YEAR NOTES AT AN AVERAGE YIELD OF FOUR POINT EIGHT THREE PERCENT COMPARED WITH AN AVERAGE YIELD OF FOUR POINT FOUR FOUR PERCENT AT THE LAST THREE YEAR NOTE AUCTION IN NOVEMBER BUT IN TRADING AFTER THE AUCTION THE SO CALLED WHEN ISSUED YIELD OF THE THREE YEAR NOTE ROSE TO FOUR POINT EIGHT FOUR PERCENT A SIGN OF WEAKENING DEMAND THE BID COVER RATIO WHICH COMPARES THE NUMBER OF BIDS SUBMITTED WITH THE NUMBER OF BIDS ACCEPTED WAS ABOUT AVERAGE AT TWO POINT SIX SIX TO ONE NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT INTEREST FROM BUYERS OUTSIDE THE DEALER COMMUNITY WERE ALSO NEAR THE RECENT AVERAGE AT EIGHT HUNDRED FORTY SIX MILLION DOLLARS QUOTE THE AUCTION WAS SORT OF NEUTRAL AT BEST QUOTE SAID MR. ALEXY OF C. S. FIRST BOSTON WITH MOST OF THE SEVENTEEN BILLION DOLLAR THREE YEAR OFFERING STILL SLOSHING AROUND IN THE HANDS OF WALL STREET DEALERS THE BOND MARKET WAS UNABLE TO SHAKE ITS RECENT SOUR TONE THE MARKET WAS WEAK BECAUSE PEOPLE FIGURED THAT IF THE TREASURY HAD TROUBLE WITH THE THREE YEAR NOTE AUCTION THE TEN YEAR NOTE AUCTION WOULD GO THE SAME WAY SAID MR. MCCARTHY INVESTORS ARE GOING TO DEMAND A GREATER PREMIUM PUSHING UP YIELDS FOR THE TEN YEAR NOTE AT TODAY'S AUCTION AND THE THIRTY YEAR BOND AT TOMORROW'S AUCTION SAYS MR. ALEXY A RISE IN YIELDS TO SIX PERCENT FOR THE TEN YEAR NOTE AND SIX POINT FIVE PERCENT FOR THE THIRTY YEAR BOND BY WEEK'S END WOULD NOT SURPRISE ME HE ADDS LATE YESTERDAY THE WHEN ISSUED TEN YEAR NOTE YIELDED FIVE POINT NINE FIVE PERCENT UP FROM FIVE POINT NINE OH PERCENT ON MONDAY MEANWHILE THE WHEN ISSUED THIRTY YEAR BOND WHICH IS A RE OPENING OF THE SIX POINT TWO FIVE PERCENT THIRTY YEAR BOND WAS CHANGING HANDS AT SIX POINT FOUR FIVE PERCENT ONCE THE BOND MARKET WEATHERS THE DELUGE OF SUPPLY IT WILL HAVE TO DEAL WITH THE PRODUCER PRICE INDEX ON FRIDAY ACCORDING TO MR. ALEXY IF THE CORE INDEX WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY SECTORS SHOWS A ZERO POINT THREE PERCENT INCREASE IN JANUARY OVER THE PREVIOUS MONTH THAT WOULD BE NEUTRAL TO POSITIVE FOR THE BOND MARKET HOWEVER IF IT'S BIGGER THAN THAT YOU'RE GOING TO BE LEFT TO SWEAT IT OUT AND THERE WILL BE QUESTIONS ABOUT WHEN THE NEXT FED TIGHTENING IS COMING HE SAYS MR. MCCARTHY SAYS INVESTORS OUGHT TO BE PREPARED FOR BAD NEWS ON FRIDAY QUOTE WE'RE PROBABLY GOING TO GET THE WORST INFLATION NUMBERS WE'VE SEEN IN A NUMBER OF MONTHS QUOTE HE PREDICTS HE'S LOOKING FOR AN INCREASE OF ZERO POINT FOUR PERCENT IN THE CORE P. P. I. THAT'S NOT AN EARTH SHATTERING NUMBER BUT IT'S DISCONCERTING AND PEOPLE WILL BE ON GUARD FOR THE NEXT MOVE BY THE FED TO RAISE RATES HE SAYS LAST FRIDAY THE FED PUSHED UP THE TARGET FOR THE FEDERAL FUNDS RATE THE RATE AT WHICH BANKS LEND EACH OTHER MONEY TO THREE POINT TWO FIVE PERCENT FROM THREE PERCENT SOME ECONOMISTS SAY THE FUNDS RATE WILL BE THREE POINT FIVE PERCENT BEFORE TOO LONG POSSIBLY BY THE END OF MARCH 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 NOTES ARE DATED FEBRUARY FIFTEENTH NINETEEN NINETY FOUR AND MATURE FEBRUARY FIFTEENTH NINETEEN NINETY SEVEN BONDS OF CELLULAR COMMUNICATION COMPANIES DROPPED IN ANTICIPATION OF NEXTEL COMMUNICATIONS INCORPORATED'S JUMBO JUNK BOND OFFERING WHICH IS SCHEDULED TO BE SOLD TODAY NEXTEL IS EXPECTED TO INCREASE THE SIZE OF ITS TEN YEAR SENIOR DISCOUNT NOTE TO BETWEEN SIX HUNDRED MILLION DOLLARS AND SEVEN HUNDRED MILLION DOLLARS FROM FOUR HUNDRED MILLION DOLLARS HOWEVER NEXTEL ALSO RAISED THE EXPECTED YIELD ON THE NOTES TO COMPENSATE FOR THE DEAL'S LARGE SIZE AND IN REACTION TO RISING INTEREST RATES IN THE TREASURY MARKET ORIGINALLY THE PAPER WAS MARKETED AT NINE POINT THREE SEVEN FIVE PERCENT BUT IT WILL PROBABLY BE PRICED AROUND NINE POINT SEVEN FIVE PERCENT SYNDICATE OFFICIALS SAID THE BONDS OF CENCALL COMMUNICATIONS CORPORATION AND THE NEXTEL BONDS OUTSTANDING TRADED LOWER MOST TRADERS SAY PRICES WILL RISE AGAIN AFTER NEXTEL'S NEW DEAL IS PRICED AND ABSORBED INTO THE MARKET CENCALL'S ZERO COUPON BONDS DUE TWO THOUSAND FOUR DROPPED BY ONE POINT OR TEN DOLLARS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO SIXTY THREE THE YIELD ROSE TO NINE POINT SEVEN NINE PERCENT FROM NINE POINT FIVE EIGHT PERCENT ZERO COUPON BONDS PAY NO INTEREST AND ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE NEXTEL'S ZERO COUPON BONDS MATURING IN TWO THOUSAND THREE DROPPED THREE QUARTERS POINT OR SEVEN DOLLARS AND FIFTY CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO SIXTY EIGHT THE YIELD ROSE TO NINE POINT SEVEN PERCENT FROM NINE POINT FIVE TWO PERCENT UPCOMING TREASURY AUCTIONS COMBINED WITH BAD WEATHER TO PUT A DAMPER ON THE CORPORATE NEW ISSUE MARKET AND ONLY SIX HUNDRED SEVENTY FIVE MILLION DOLLARS OF DEBT WAS PRICED TRADING IN THE INVESTMENT GRADE MARKET WAS MODERATE WITH MOST OF THE ATTENTION CENTERED ON TREASURY AUCTIONS PRICES FOLLOWED TREASURYS LOWER LEAVING SPREADS MOSTLY UNCHANGED YIELD SPREADS OF TRIPLE B. RATED CORPORATE SECURITIES OVER TREASURYS TIGHTENED BY ABOUT ZERO POINT ZERO TWO PERCENTAGE POINT ONE TRADER SAID TAPPING THE LONG END OF THE YIELD CURVE PAINEWEBBER GROUP SOLD TWO HUNDRED MILLION DOLLARS OF TWENTY YEAR DEBT WHILE CONSOLIDATED EDISON COMPANY OF NEW YORK INCORPORATED ISSUED ONE HUNDRED FIFTY MILLION DOLLARS OF THIRTY FIVE YEAR PAPER THE LONGEST DEBT SOLD THIS YEAR THE BONDS TRADED UP HOWEVER BY ZERO POINT FIVE ZERO POINT OR FIVE DOLLARS AND ZERO CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO ONE HUNDRED POINT FIVE OH THE YIELD DROPPED TO NINE POINT OH FIVE PERCENT RATED SINGLE B. ONE BY MOODY'S AND DOUBLE B. MINUS BY S. AND P. THE NONCALLABLE NOTES WERE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS MUNICIPAL BONDS WEAKENED FOR THE FOURTH STRAIGHT SESSION AND FINISHED ONE QUARTER TO THREE QUARTERS POINT LOWER SALES OF TREASURYS MUNIS AND OTHER U. S. BONDS WERE SET IN MOTION LATE LAST WEEK BY THE FEDERAL RESERVE'S TIGHTENING OF ITS MONETARY POLICY THE REEDY CREEK IMPROVEMENT DISTRICT FLORIDA FIVE POINT OH OH PERCENT BONDS DUE TWO THOUSAND NINETEEN WERE DOWN THREE QUARTERS AT NINETY FOUR AND ONE QUARTER YIELDING FIVE POINT THREE EIGHT PERCENT THE NEW YORK AND FLORIDA BONDS WERE PRICED TO YIELD FIVE POINT THREE FIVE PERCENT LATE MONDAY BUT THE PRICE DECLINE NUDGED THE YIELDS UP ALTHOUGH LAST WEEK'S FED TIGHTENING WAS RATHER MODEST THE ACTION CONTINUES TO TAKE A TOLL ON MUNIS TRADERS SAY FRIDAY REALLY REPRESENTED A PSYCHOLOGICAL CHANGE IN THE MARKETPLACE SAID GREGORY GIZZI A TRADER AT DILLON READ THERE IS VERY VERY LITTLE CUSTOMER INTEREST IN MUNIS FOLLOWING THE CENTRAL BANK'S SHIFT TO A TIGHTENING MODE HE SAID NOTING THAT THE MARKET'S CURRENT CONDITION IS IN A WORD UGLY MORTGAGES LOST GROUND BUT NOT NEARLY AS MUCH AS TREASURYS AS A RESULT YIELDS ON CURRENT COUPON MORTGAGES NARROWED BY ABOUT THREE BASIS POINTS TO THE YIELD ON THE TREASURY'S TEN YEAR NOTE A PRICING BENCHMARK FOR CURRENT COUPONS THE TIGHTENING OF MORTGAGE SPREADS REFLECTS SEVERAL FACTORS THAT CONTINUE TO BUOY THE MORTGAGE MARKET AMONG THEM LIGHT SELLING OF NEW SECURITIES BY MORTGAGE BANKERS ANOTHER REASON IS THAT BUYERS ARE STILL LOOKING FOR HIGH QUALITY SECURITIES THAT HAVE MORE YIELD THAN IS AVAILABLE IN TREASURYS OR EVEN CORPORATES IN SECONDARY TRADING GINNIE MAE SIX POINT FIVES WERE OFF FOUR THIRTY SECONDS AT NINETY EIGHT AND TWENTY ONE THIRTY SECONDS FREDDIE MAC SIX POINT FIVES WERE OFF FOUR THIRTY SECONDS AT NINETY EIGHT AND TWENTY SEVEN THIRTY SECONDS AND FANNIE MAE SIX POINT FIVES WERE OFF FOUR THIRTY SECONDS AT NINETY EIGHT AND TWENTY THIRTY SECONDS THE TREASURY SELL OFF HAS ALSO GIVEN A BOOST TO MORTGAGES BY ELIMINATING ANY LINGERING FEARS OF A MINI REFINANCING WAVE PARTICIPANTS HAVE BEEN WORRIED THAT MORTGAGE RATES WERE STILL LOW ENOUGH TO TRIGGER PREPAYMENTS IN OUTSTANDING MORTGAGE SECURITIES JANUARY PREPAYMENT DATA RELEASED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ON MONDAY QUELLED SOME OF THOSE CONCERNS THE FIGURES SHOWED PREPAYMENT SPEEDS DROPPING ACROSS THE BOARD ACCORDING TO PAINEWEBBER PREPAYMENT SPEEDS OF FANNIE MAE AND GINNIE MAE SECURITIES UNDER THE PUBLIC SECURITIES ASSOCIATION MODEL FELL THIRTY PERCENT TO FORTY PERCENT THE PREPAYMENT NEWS HELPED PRICES OF MOST INTEREST ONLY SECURITIES OR BONDS CREATED SOLELY FROM THE INTEREST OF AN UNDERLYING POOL OF MORTGAGE LOANS THOMAS D. LAURICELLA CONTRIBUTED TO THIS REPORT TWO BLACK FORMER MANAGERS OF TELE COMMUNICATIONS INCORPORATED HAVE FILED A LAWSUIT SEEKING CLASS ACTION STATUS THAT SEEKS TO BLOCK T. C. I.'S ACQUISITION BY BELL ATLANTIC CORPORATION ALLEGING A PATTERN OF RACIAL DISCRIMINATION CALVIN SMILEY AND LEONIE ELIZABETH PALUMBO WHO SAID THEY WERE AMONG THE HIGHEST RANKING BLACKS AT T. C. I. WHEN THEY LEFT THE COMPANY LAST FALL FILED THE LAWSUIT IN FEDERAL COURT IN WASHINGTON D. C. THEY ALLEGE THAT T. C. I. HAS ENGAGED IN A WIDESPREAD QUOTE EFFORT TO TERMINATE HIGH LEVEL BLACK EMPLOYEES QUOTE THE SUIT ALSO CHARGES THAT T. C. I. A MAJOR CABLE COMPANY NO LONGER EMPLOYS ANY BLACK TOP MANAGERS IN MAJOR URBAN MARKETS AND THAT IT LIMITS PROMOTIONAL OPPORTUNITIES FOR BLACK CANDIDATES THE CASE WAS ONE OF THREE RACIAL DISCRIMINATION LAWSUITS FILED AGAINST T. C. I. YESTERDAY BY LAWYER STEPHEN L. SNYDER HE PREVIOUSLY LOGGED ANOTHER CASE IN WHICH T. C. I. ENDED UP AGREEING TO A SETTLEMENT WITH TWO BLACK INVESTORS IN BALTIMORE VALUED AT AN ESTIMATED ONE HUNDRED MILLION DOLLARS IN STOCK AND CASH THE COMPLAINTS YESTERDAY FOLLOW SIMILAR CRITICISMS LEVELED AGAINST T. C. I. BY THE N. DOUBLE A. C. P. AND THE LEAGUE OF UNITED LATIN AMERICAN CITIZENS WHICH HAVE ACCUSED T. C. I. OF BEING THE WORST DISCRIMINATOR IN THE TELECOMMUNICATIONS INDUSTRY IT ISN'T CLEAR WHETHER THE CLASS ACTION LAWSUIT WILL BE AT ALL SUCCESSFUL IN DERAILING OR DELAYING THE BELL ATLANTIC ACQUISITION T. C. I.'S LAWYER VINCENT COHEN OF THE WASHINGTON LAW FIRM OF HOGAN AND HARTSON DISMISSED ALL OF THE ALLEGATIONS IN THE THREE SUITS AS FALSE HE SAID ANY TERMINATIONS OR OTHER MATTERS RAISED IN THE COMPLAINTS WEREN'T RACE RELATED AND THAT THE SUITS DON'T TROUBLE US THEY'LL BE DISMISSED IN NINETY DAYS THE COMPLAINTS WERE FILED CLEARLY TO GET MEDIA ATTENTION THE T. C. I. LAWYER CONTENDED MR. SNYDER THE PLAINTIFFS' ATTORNEY LEVELED SOME UNUSUAL CHARGES AT T. C. I. THEY'VE DONE SOME BIZARRE THINGS THE BALTIMORE LAWYER SAID IN ADDITION TO THE CLASS ACTION SUIT HE FILED TWO LAWSUITS IN BALTIMORE CITY COURT ONE ALLEGES THAT AT T. C. I.'S BALTIMORE SYSTEM ARMED SECURITY PERSONNEL GRILLED TWENTY SEVEN BLACK EMPLOYEES IN A MAKESHIFT QUOTE HOLDING PEN QUOTE FOR HOURS IN INVESTIGATING CONVERTER BOX THEFT THE SUIT ALSO ALLEGES THAT T. C. I. HIRED PRIVATE INVESTIGATORS TO GATHER PERSONAL INFORMATION ON SOME EMPLOYEES AND PLACED ILLEGAL WIRETAPS ON THEIR OFFICE PHONES THE SECOND CITY SUIT FILED ON BEHALF OF FIRED BLACK MANAGER EUAN FANNELL ACCUSES T. C. I.'S BALTIMORE OFFICE OF PLANTING COCAINE IN MR. FANNELL'S OFFICE AND CAR THEN TIPPING OFF LOCAL POLICE ON WHEN AND WHERE TO NAB HIM WITH THE CONTRABAND MR. FANNELL ONE OF THE HIGHEST RANKING BLACKS AT T. C. I. AT THE TIME WAS FIRED BY THE COMPANY LAST OCTOBER YOUR ARTICLE IN THE FEBRUARY SECOND EDITION ON THE USES OF THE SALES TAX FOR ECONOMIC DEVELOPMENT QUOTE TAX AIMED AT THE CREATION OF JOBS MISSES MARK QUOTE DWELT ON THE ACTIONS OF CITIES THAT HAVE ABUSED OR MISUSED THE REVENUE FORTUNATELY MOST OF THE ONE HUNDRED THIRTY SIX CITIES THAT HAVE AUTHORIZED COLLECTION UNDER THE LEGISLATION ARE USING THE FUNDS IN A CONSTRUCTIVE MANNER TO ADVANCE THEIR RESPECTIVE ECONOMIC DEVELOPMENT PROGRAMS UNFORTUNATELY THE RELATIVELY FEW THAT ARE ABUSING THE PRIVILEGE MAY SPOIL IT FOR THE VAST MAJORITY WHO ARE COMPLYING WITH THE SPIRIT OF THE LEGISLATION THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR ROSE SLIGHTLY TO ONE HUNDRED ELEVEN POINT FIVE FROM ONE HUNDRED ELEVEN POINT TWO IN THE YEAR EARLIER PERIOD AS A DIP IN INITIAL UNEMPLOYMENT CLAIMS OVERSHADOWED A SLIGHT DROP IN TEXAS REFINERY OUTPUT CONTINUING A RECENT TREND THE YEAR OVER YEAR GROWTH RATE IN THE INDEX ROSE TO TWO POINT NINE FOUR PERCENT IN THE LATEST WEEK FROM TWO POINT EIGHT FOUR PERCENT IN THE PRIOR WEEK BLUE CROSS AND BLUE SHIELD OF TEXAS THE INSURER BEAT OUT SEVEN COMPETITORS IN A BID TO ADMINISTER A NEW HEALTH INSURANCE POOL FOR SMALL BUSINESSES CYRIX ARCHRIVAL INTEL AGREED TO PAY THIS RICHARDSON MICROCHIP MAKER FIVE MILLION DOLLARS AND DROP CERTAIN PATENT INFRINGEMENT CLAIMS PREGNANT WOMEN HOUSTON BASED APROGENEX SAID IT DEVELOPED A GENETIC TEST THAT COULD EVENTUALLY REPLACE AMNIOCENTESIS A SOMETIMES RISKY WAY TO DETECT FETAL DISORDERS REAL COWBOYS ATTENDANCE AT THE FORT WORTH STOCK SHOW WAS DOWN SLIGHTLY BECAUSE OF BAD WEATHER AND COMPETITION FROM DALLAS COWBOYS' GAMES TITUS COUNTY RESIDENTS OF THIS NORTHEAST TEXAS COUNTY APPEAR TO SUFFER HIGHER THAN NORMAL RATES OF TWO CANCERS ACCORDING TO A NEW STUDY COMPUSA A RASH OF PRODUCT THEFTS CONTRIBUTED TO THIS DALLAS COMPUTER CHAIN'S SECOND CONSECUTIVE QUARTERLY LOSS I READ YOUR JANUARY TWENTY SIXTH ARTICLE ON MUTUAL FUNDS QUOTE TEXAS MUTUAL FUNDS RETURNS ARE IN QUOTE AND I WONDERED WHICH AMERICAN CAPITAL ASSET MANAGEMENT INCORPORATED YOU WERE REVIEWING THE DAY BEFORE I HAD RECEIVED THE NINETEEN NINETY THREE SURVEY OF BROKERS WHO RECOMMEND VARIOUS FUND GROUPS TO THEIR CLIENTS AMERICAN CAPITAL RANKED NUMBER ONE IN FOUR OF SIX CATEGORIES AND NUMBER THREE AND NUMBER FOUR IN THE OTHER TWO SINCE NINETEEN EIGHTY SEVEN WHEN DON POWELL CHAIRMAN OF AMERICAN CAPITAL AND DON MCMULLEN PRESIDENT CAME TO HOUSTON WITH THE MISSION OF MAKING AMERICAN CAPITAL THE PREMIER MUTUAL FUND COMPANY IN THE COUNTRY THEIR TURNAROUND HAS BEEN A SUCCESS STORY AS RATED BY THE BROKERS IT IS CURRENTLY RATED NUMBER ONE IN OVERALL SERVICE QUALITY MARKETING SUPPORT PROBLEM RESOLUTION SLASH ERROR CORRECTION AND WHOLESALER SUPPORT I HAVE AS AN INDEPENDENT BROKER FOLLOWED ALL MAJOR MUTUAL FUND COMPANIES THROUGHOUT MY TWENTY SIX YEAR CAREER AND CAN ATTEST TO THE SUCCESS MY CLIENTS WHO OWN AMERICAN CAPITAL PRODUCTS HAVE ENJOYED RECENTLY I RAN AN ANALYSIS FOR MANY OF MY CUSTOMERS WHO UPON MY RECOMMENDATION PURCHASED AMERICAN CAPITAL EMERGING GROWTH A FUND THREE YEARS AGO THEIR ACCOUNTS HAD COMPOUNDED AT A RATE OF THIRTY FIVE POINT FIVE PERCENT A YEAR OR ONE HUNDRED FORTY EIGHT POINT NINE SIX PERCENT FROM SEPTEMBER THIRTIETH NINETEEN NINETY THROUGH SEPTEMBER THIRTIETH NINETEEN NINETY THREE AND THE TRACK RECORD OF MANY AMERICAN CAPITAL FUNDS SINCE THIS TIME HAS BEEN IMPRESSIVE THE ISSUE IS THIS TEN YEAR PAST PERFORMANCE DOES NOT PREDICT THE FUTURE NOR DOES IT ACCURATELY REFLECT THE PAST IF A MAJOR CHANGE IN MANAGEMENT INVESTMENT STYLE OR OBJECTIVE IS INCLUDED IN THAT TEN YEAR NUMBER HONESTY INTEGRITY QUALITY SERVICE COMMITMENT TO EXCELLENCE ACCURACY WHO DEVELOPS NUMBERS FOR THESE QUALITIES UNLESS YOU'VE PERSONALLY RECOMMENDED ANY OF THE FUNDS AND HAVE WITNESSED PEOPLE RETIRE WITH DIGNITY CHILDREN GROW UP AND RECEIVE DIPLOMAS FROM COLLEGE SEEN THE PEACE OF MIND WHEN A WIDOW RECEIVES A MONTHLY CHECK LIKE CLOCKWORK FROM HER NEST EGG AND REALIZES IT WAS BECAUSE YOU RECOMMENDED A WORLD CLASS MANAGER IT IS VIRTUALLY IMPOSSIBLE TO FEEL HOW PEOPLE RESPOND WHEN THEY READ AN ARTICLE IN THE WALL STREET JOURNAL WHOSE OVERALL CONCLUSION IS THAT TEXAS MUTUAL FUNDS' RETURNS ARE LOUSY ENGELHARD CORPORATION SAID IT WOULD TAKE A NINETY ONE POINT EIGHT MILLION DOLLAR RESTRUCTURING CHARGE CAUSING A FOURTH QUARTER LOSS OF SIXTY ONE POINT SIX MILLION DOLLARS ENGLEHARD BASED IN ISELIN N. J. SAID MOST OF THE NINETY SIX CENTS A SHARE CHARGE RELATED TO QUOTE ASSETS WRITE OFFS BUSINESS RELOCATIONS AND EMPLOYEE COSTS WITH THE BALANCE FOR ENVIRONMENTAL MATTERS QUOTE THE COMPANY SAID ITS ACTIONS WILL ALLOW IT TO FURTHER REALIGN AND CONSOLIDATE BUSINESSES CONCENTRATE RESOURCES AND BETTER POSITION ITSELF FOR THE YEAR ENGELHARD SAID NET INCOME SIX HUNDRED SEVENTY TWO THOUSAND DOLLARS OR ONE CENT A SHARE COMPARED WITH NET INCOME OF TEN POINT SIX MILLION DOLLARS OR ELEVEN CENTS A SHARE A YEAR EARLIER A MORTAR SHELL THAT SLAUGHTERED OR MAIMED SOME TWO HUNDRED SIXTY EIGHT PEOPLE SATURDAY IN A CROWDED MARKETPLACE IN SARAJEVO HAS TOUCHED OFF YET ANOTHER WESTERN DEBATE ON WHAT TO DO ABOUT BOSNIA AS IS EVIDENT FROM THE CONTINUED DITHERING ABOUT WHICH WESTERN LEADER IS IN CHARGE OF DECISIONS THE PREFERENCE IS FOR CONTINUING TO DO NOTHING AT LEAST NOTHING INVOLVING MILITARY FORCE THIS IS INCREASINGLY INCONSISTENT WITH THE EMOTIONS OF THE WESTERN PUBLIC STIRRED INTO A NEW BURST OF OUTRAGE BY T. V. FOOTAGE OF THE CARNAGE IN SARAJEVO THE WAR IS NOT GOING AWAY THE KILLING IS NOT ENDING BUT CONTINUING MANY WESTERN LEADERS WERE WILLING TO CONCEDE A SERBIAN VICTORY OUT OF A BELIEF THAT THE FIGHTING WOULD SUBSIDE INTO AN UNHAPPY MODUS VIVENDI FOR THE BOSNIAN MUSLIMS THE INEFFECTIVENESS OF THE WESTERN ALLIANCES AND THE UNITED NATIONS WOULD IN TIME BE FORGOTTEN BUT THAT IS NOT HAPPENING THE EVIDENCE IT IS NOT GOES WELL BEYOND SATURDAY'S AWFUL EVENT IN SARAJEVO WHAT IN FACT IS HAPPENING IS THAT THE BOSNIAN ARMY IS GAINING STRENGTH AND HAS BEGUN TO WIN BACK SOME OF THE TERRITORY LOST TO THE SERBS AND CROATS WHEN THOSE FORCES WERE HAVING THINGS THEIR OWN WAY THIS MEANS A CONTINUING WAR ABOUT WHICH NATO AND THE EUROPEAN UNION NEED TO MAKE SOME NEW DECISIONS THE FUNDAMENTAL DECISION IS WHETHER TO SUPPORT THE BOSNIANS OR LEAVE THEM TO THEIR OWN DEVICES THEIR OWN DEVICES ARE BECOMING MORE EFFECTIVE FOR THAT THEY OWE NO THANKS TO THE U. S. EUROPE AND THE U. N. QUITE THE CONTRARY THE U. N. ARMS EMBARGO AT THE OUTSET OF THE WAR PUT THEM AT AN INITIAL DISADVANTAGE BECAUSE THE BOSNIAN SERBS COULD GET ARMS AND AMMUNITION FROM SERBIA BUT EMBARGOES ARE POROUS PARTICULARLY WHEN DESPERATE PEOPLE NEED WEAPONS AND HAVE FRIENDS ON THE OUTSIDE WHO ARE WILLING TO SUPPLY THEM PAUL BEAVER OF JANE'S INFORMATION GROUP WROTE IN THE WALL STREET JOURNAL EUROPE ON JANUARY TWENTY SEVENTH THAT THE BOSNIANS NOW ARE GETTING ARMS AND ORGANIZATIONAL AID FROM SEVERAL MUSLIM NATIONS HE REPORTED AN INFLUX OF SOME TWO THOUSAND PROFESSIONAL FIGHTERS FROM PAKISTAN AFGHANISTAN MOROCCO ALGERIA AND OTHER ISLAMIC STATES THEY HAVE HELPED THE BOSNIANS TRANSFORM A RAGTAG ARMY INTO A FORCE OF EIGHTY THOUSAND TROOPS ARMED MOSTLY WITH LIGHT WEAPONS TWO SPECIAL BRIGADES MADE UP HEAVILY OF VOLUNTEERS HAVE PERFORMED ESPECIALLY WELL AGAINST SERBS AND CROATS IT WAS A MATTER OF NO SMALL SIGNIFICANCE THAT THE LEADERS OF TWO IMPORTANT MUSLIM STATES SHOWED UP LAST WEEK IN SARAJEVO TO SHOW THEIR SOLIDARITY WITH BOSNIA PRIME MINISTERS TANSU CILLER OF TURKEY AND BENAZIR BHUTTO OF PAKISTAN WEARING FLAK JACKETS APPEALED TO THE WORLD TO DEFEND BOSNIA AGAINST THE SAVAGERY OF ETHNIC CLEANSING BOTH COUNTRIES ARE IMPORTANT FRIENDS OF THE U. S. IF THE WEST REALLY WANTED TO DO SOMETHING TO RELIEVE SARAJEVO IT WOULD REPEAL THE MISCONCEIVED ARMS EMBARGO AND THROW SUPPORT BEHIND THE BOSNIAN FORCES DOING IT NOT THROUGH THE TANGLED WEB OF THE UNITED NATIONS BUT THROUGH NATO GIVING THE BOSNIANS HEAVY WEAPONS OR AT LEAST SANCTIONING THOSE WHO MIGHT SUPPLY THEM WOULD FURTHER EVEN THE ODDS THE TURKS WHO MAY ALREADY BE ADVISING THE BOSNIANS COULD BE INVITED AS MEMBERS OF NATO TO HELP MANAGE THE EXERCISE ON THE GROUND THIS IN ITSELF MIGHT RESULT IN THE KIND OF BALANCE THAT HAS HISTORICALLY PRODUCED UNEASY PEACE IN UNEASY PARTS OF THE WORLD UNLIKE THE MAUNDERINGS OF A LORD OWEN ACTION THAT AFFECTS THE BATTLEFIELD WOULD GET THE ATTENTION OF THE SERBS WHO SO FAR HAVE HAD A MARVELOUS TIME PLAYING GAMES WITH THE PEACEMAKERS EVEN MORE DIRECT SUPPORT IF LEADERSHIP WERE SOMEHOW FOUND WOULD BE BOTH MORALLY JUSTIFIED AND MILITARILY POSSIBLE WITH A CREDIBLE BOSNIAN FORCE ON THE GROUND COORDINATING WITH NATO FIGHTER BOMBERS NATO AIR STRIKES AGAINST THE SERBS AND CROATS WOULD BEGIN TO MAKE MILITARY SENSE BELGRADE AND ZAGREB WOULD BE ADVISED TO REDUCE THEIR INVOLVEMENT ON PENALTY OF DIRECT NATO STRIKES AT MILITARY TARGETS IN THE SERB AND CROAT HOMELANDS EUROPE WOULDN'T KNOW WHAT TO DO ABOUT THAT COLOSSUS OF THE SOUTH GREECE WHICH IS FRIENDLY TOWARD SERBIA AND JUST HAPPENS TO HOLD THE E. U. PRESIDENCY BILL CLINTON IS BUSILY DISARMING AND WOULD BE CONCERNED ABOUT ANNOYING THE RUSSIANS ON MONDAY HE WAS PUTTING HIMSELF FIRMLY IN LINE BEHIND BOUTROS BOUTROS GHALI ABOUT THE LAST THING BOSNIA NEEDS IS THE CLINTON PLOY OF MARCHING OUT WITH FORCE AND THEN BACKING DOWN SO THE MORE LIKELY PROGNOSIS IS FURTHER DRIFT CENTRAL EUROPEAN NATIONS HAVING BEEN SHUT OUT OF NATO AND HAVING WITNESSED THE WEAKNESS OF THE WEST WILL START THINKING ABOUT THEIR OWN NEEDS FOR A MODUS VIVENDI WITH RUSSIA HUNGARY AND BULGARIA ALREADY ARE WARMING TOWARD SERBIA THEY UNDERSTAND ALL TOO WELL THAT THE WEST DID NOT DEFEND THE BOSNIANS BUT THROUGH THE EMBARGO PREVENTED THEM FROM DEFENDING THEMSELVES SO IF EVEN AFTER THE CURRENT OUTRAGE NO ACTION IS TO BE TAKEN THE WEST COULD AT LEAST START TO DRAW SOME LESSONS FROM ITS MISTAKES HISTORY TEACHES THAT VIOLENCE CAN BE CONTAGIOUS AND THE COLLAPSE OF THE COMMUNIST EMPIRE HAS LEFT SCORES OF OTHER BOSNIAS WAITING TO HAPPEN THE LOSS WAS IN LINE WITH ANALYSTS' EXPECTATIONS FOR THREE D. O. WHICH IS BACKED BY MATSUSHITA ELECTRIC INDUSTRIAL COMPANY AMERICAN TELEPHONE AND TELEGRAPH COMPANY AND TIME WARNER INCORPORATED IN THE NASDAQ STOCK MARKET THREE D. O. CLOSED AT TWENTY FOUR DOLLARS AND TWENTY FIVE CENTS DOWN TWENTY FIVE CENTS D. REX GOLDING THREE DO'S D. CHIEF FINANCIAL OFFICER SAID IN A STATEMENT THAT THE COMPANY HAD ACHIEVED QUOTE AN IMPORTANT MILESTONE QUOTE IN SHIPPING ITS INTERACTIVE MULTIPLAYER BY THE CHRISTMAS HOLIDAY SEASON THE MULTIPLAYER IS A COMPUTER WITH COMPACT DISK DRIVES AND HIGH QUALITY GRAPHICS THAT HAS BEEN HEAVILY PROMOTED AS A CONTROLLER FOR HOME ENTERTAINMENT CENTERS DIGITAL EQUIPMENT CORPORATION UNVEILED TWO NEW WORKSTATIONS AS WELL AS EQUIPMENT FOR MAKING MOBILE COMPUTERS WORK AS PART OF A COMPUTER NETWORK DIGITAL MAYNARD MASSACHUSETTS SAID IT WILL REPLACE ITS ENTRY LEVEL THREE HUNDRED L. WORKSTATION WITH THE MODEL THREE HUNDRED L. X. PRICED AT FIVE THOUSAND TWO HUNDRED NINETY FIVE DOLLARS THE COLOR WORKSTATION WITH HIGH RESOLUTION GRAPHICS USES A ONE HUNDRED TWENTY FIVE MEGAHERTZ ALPHA MICROPROCESSOR THE MAKER OF DATA PROCESSING EQUIPMENT ALSO UNVEILED A MORE POWERFUL WORKSTATION WITH A ONE HUNDRED SEVENTY FIVE MEGAHERTZ ALPHA MICROPROCESSOR WITH A BASE PRICE OF SEVEN THOUSAND NINE HUNDRED NINETY FIVE DOLLARS DIGITAL SAID ITS ROAMABOUT SOFTWARE AND HARDWARE DESIGNED FOR WIRELESS MOBILE COMPUTING INCLUDES SOFTWARE THAT PROVIDES PERMANENT NETWORK QUOTE ADDRESSES QUOTE THAT WILL FOLLOW USERS AS THEY TRAVEL OTHER NEW ROAMABOUT PRODUCTS INCLUDE WIRELESS NETWORK ADAPTORS THAT FIT INTO A CREDIT CARD SIZED SLOT ON A PORTABLE COMPUTER EQUIPPING A PORTABLE P. C. FOR WIRELESS COMPUTING WITH ITS PRODUCTS WOULD COST AROUND SIX HUNDRED DOLLARS DIGITAL SAID BOOSTED BY ONE TIME GAINS MORRISON KNUDSEN CORPORATION POSTED HIGHER FOURTH QUARTER EARNINGS THE BOISE IDAHO ENGINEERING AND CONSTRUCTION CONCERN REPORTED PROFIT OF TEN POINT FOUR MILLION DOLLARS OR THIRTY THREE CENTS A SHARE UP FIFTY ONE PERCENT FROM YEAR AGO PROFIT OF SIX POINT NINE MILLION DOLLARS OR TWENTY THREE CENTS A SHARE THE QUARTER'S RESULTS INCLUDE A GAIN OF SEVEN POINT FIVE MILLION DOLLARS FROM TWO STOCK SALES REVENUE FOR THE QUARTER WAS SEVEN HUNDRED SEVENTY THREE POINT ONE MILLION DOLLARS UP FROM SIX HUNDRED SIXTY SIX POINT SEVEN MILLION DOLLARS A YEAR EARLIER FOR THE YEAR MORRISON KNUDSEN HAD PROFIT OF THIRTY FIVE POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND FIFTEEN CENTS A SHARE COMPARED WITH A LOSS OF SEVEN POINT ONE MILLION DOLLARS OR TWENTY THREE CENTS A SHARE AFTER ONE TIME CHARGES REVENUE FOR THE YEAR WAS TWO POINT SEVEN TWO BILLION DOLLARS UP FROM TWO POINT TWO EIGHT BILLION DOLLARS CHRIS CRAFT INDUSTRIES INCORPORATED SAID FOURTH QUARTER NET INCOME ROSE THIRTY SIX PERCENT AIDED BY SHARP GAINS IN OPERATING EARNINGS FROM ITS TELEVISION DIVISION THE NEW YORK VIDEO CONCERN SAID PROFIT ROSE TO TWENTY FOUR POINT ONE MILLION DOLLARS OR EIGHTY FOUR CENTS A SHARE FROM SEVENTEEN POINT SEVEN MILLION DOLLARS OR SIXTY THREE CENTS A SHARE FOR THE FOURTH QUARTER TELEVISION DIVISION OPERATING PROFIT ROSE SEVENTY THREE PERCENT TO TWENTY FIVE POINT THREE MILLION DOLLARS REFLECTING A FOUR PERCENT GAIN IN OPERATING REVENUE AND A THREE PERCENT REDUCTION IN PROGRAMMING EXPENSES DURING THE QUARTER INCOME FROM TIME WARNER INCORPORATED SECURITIES INCLUDING SALES FELL TO TWO POINT NINE MILLION DOLLARS FROM TWENTY EIGHT POINT FIVE MILLION DOLLARS A YEAR EARLIER FOR THE YEAR NET INCOME MORE THAN DOUBLED TO ONE HUNDRED FORTY NINE MILLION DOLLARS OR FIVE DOLLARS AND TWENTY SIX CENTS A SHARE FROM SIXTY FIVE POINT TWO MILLION DOLLARS OR TWO DOLLARS AND THIRTY TWO CENTS A SHARE TWO BABY BELLS YESTERDAY TOOK STEPS TOWARD OPENING UP THEIR LOCAL TELEPHONE MONOPOLIES TO COMPETITION PART OF THEIR SEPARATE EFFORTS TO GAIN ENTRY INTO THE SIXTY BILLION DOLLAR LONG DISTANCE MARKET FROM WHICH THEY ARE NOW BANNED AMERITECH CORPORATION THE REGIONAL TELEPHONE COMPANY BASED IN CHICAGO SAID IT WILL SUBMIT A BLUEPRINT TO ILLINOIS STATE REGULATORS NEXT WEEK THAT SPELLS OUT HOW THE BABY BELL PLANS TO OPEN UP ITS FACILITIES TO COMPETITORS BUT WILL DO SO ONLY IF IT CAN WIN FEDERAL APPROVAL IN WASHINGTON TO ENTER THE LONG DISTANCE MARKET ON A LIMITED BASIS SAN FRANCISCO BASED PACIFIC TELESIS GROUP MEANWHILE ASKED CALIFORNIA REGULATORS TO STEP UP THEIR PLANS TO OPEN THE LOCAL MARKET FOR TELEPHONE SERVICE TO COMPETITORS ITS PACIFIC BELL UNIT ASKED THE PUBLIC UTILITIES COMMISSION TO REMOVE FORMAL BARRIERS TO COMPETITION EXPANDING AN INITIATIVE BEGUN BY STATE REGULATORS LAST SPRING UNDER STATE LAW COMPETITION FOR DIAL TONE SERVICE ISN'T PERMITTED THE PACIFIC BELL FILING APPARENTLY DOESN'T OFFER SPECIFICS ON HOW TO ALLOW NEW COMPETITION INSTEAD ASKING REGULATORS TO EXAMINE THE ISSUE AND COME UP WITH A GAME PLAN AMERITECH'S PROPOSAL BY CONTRAST IS MORE DETAILED AS PREVIOUSLY REPORTED AMERITECH'S PLAN IS CONTINGENT ON WINNING APPROVAL FROM THE U. S. DISTRICT COURT IN WASHINGTON TO OFFER LONG DISTANCE SERVICE FOR CALLS HEADING OUT OF ILLINOIS ONE OF FIVE MIDWEST STATES WHERE AMERITECH NOW HAS A VIRTUAL MONOPOLY ON LOCAL SERVICE IF THAT APPROVAL IS GRANTED AMERITECH WOULD THROW OPEN ITS FACILITIES TO ANY AND ALL COMPETITIORS SAID AMERITECH VICE CHAIRMAN RICHARD BROWN QUOTE THIS WILL BRING FULL COMPETITION TO THREE POINT FIVE MILLION CUSTOMERS IN ILLINOIS QUOTE MR. BROWN SAID AT PACIFIC BELL VICE PRESIDENT BRUCE JAMISON SAID THE COMPANY IS WILLING TO OPEN UP THE MARKET BUT ONLY IF IT CAN COMPETE ON EQUAL FOOTING IF COMPETITORS ARE ALLOWED TO INTERCONNECT WITH PACIFIC BELL'S EQUIPMENT FOR EXAMPLE THEN PACIFIC BELL WANTS PERMISSION TO INTERCONNECT WITH COMPETITORS MR. JAMISON SAID THAT IS EXACTLY WHAT SOME PROPONENTS OF COMPETITION AT THE LOCAL LEVEL ARE AFRAID OF CONSUMER ADVOCATES FEAR THAT ROBUST COMPETITION WON'T DEVELOP IF THE BABY BELLS ARE FREE TO COMPETE UNFETTERED BY REGULATIONS INDEED AN AS YET UNRELEASED STUDY BY ECONOMICS AND TECHNOLOGY INCORPORATED A BOSTON BASED TELECOMMUNICATIONS RESEARCH FIRM CONTENDS THAT THE TOTAL REVENUE OF THE CURRENT ROSTER OF POSSIBLE COMPETITORS IS LESS THAN ONE PERCENT OF THE TOTAL REVENUE OF THE BABY BELLS THE STUDY FUNDED IN PART BY AMERICAN TELEPHONE AND TELEGRAPH COMPANY AND M. C. I. COMMUNICATIONS CORPORATION CONCLUDED THAT THE BABY BELLS COULD BE EXPECTED TO RETAIN A VIRTUAL LOCK ON THE LOCAL MARKET FOR THE FORSEEABLE FUTURE THOUGH COMPETITION IN SOME SIGNIFICANT COMPONENTS OF THE MARKET WILL LIKELY DEVELOP OVER THE NEXT DECADE THE REPORT POINTS OUT THAT MARKETS WHERE THE BELLS HAVE BEEN PROHIBITED FROM ENTERING LIKE LONG DISTANCE AND MANUFACTURING HAVE SEEN ROBUST COMPETITION IN RECENT YEARS WHILE MARKETS WHERE THE BELLS HAVE BEEN ALLOWED TO TREAD HAVE NOT STARTER CORPORATION SAID A SHAREHOLDER FILED A CLASS ACTION LAWSUIT AGAINST THE COMPANY AND ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALLEGING THAT THEY FAILED TO DISCLOSE PROMPTLY ADVERSE FACTS ABOUT FOURTH QUARTER RESULTS THE NEW HAVEN CONNECTICUT DESIGNER AND MARKETER OF OUTERWEAR AND ACTIVE WEAR SAID IT INTENDS TO VIGOROUSLY DEFEND THE LAWSUIT DESCRIBING THE COMPLAINT AS BEING QUOTE WITHOUT MERIT QUOTE THE SUIT FILED IN FEDERAL COURT IN CONNECTICUT ALLEGES AMONG OTHER THINGS THAT STARTER FAILED TO REVEAL INFORMATION ABOUT SUPPLY PROBLEMS IT WAS HAVING WITH ITS WINTER OUTERWEAR PRODUCTS THE COMPANY SAID THE SUIT SEEKS AN UNSPECIFIED AMOUNT OF MONETARY DAMAGES A GROUP LED BY NUMED HOME HEALTH CARE INCORPORATED IS SEEKING TO OUST A MAJORITY OF THE DIRECTORS OF HOSPITAL STAFFING SERVICES INCORPORATED AND ULTIMATELY REMOVE SOME OF THE SENIOR MANAGERS ACCORDING TO A SECURITIES AND EXCHANGE COMMISSION FILING THE NUMED GROUP SAID IN THE FILING THAT IT IS TAKING THIS ACTION BECAUSE QUOTE THE MANAGEMENT AND CURRENT DIRECTORS OF HSS ARE NOT PREPARED TO REACT IN A PROMPT AND DECISIVE MANNER TO SERIOUS PROBLEMS CONFRONTING HSS QUOTE NUMED A CLOSELY HELD PROVIDER OF HOME HEALTH CARE SERVICES BASED IN INDEPENDENCE OHIO SAID IT HOLDS ABOUT A SIX POINT THREE PERCENT STAKE IN HSS A SPOKESMAN FOR HSS A FORT LAUDERDALE FLORIDA PROVIDER OF MEDICAL PERSONNEL FOR HEALTH CARE FACILITIES SAID THE COMPANY WILL ISSUE A STATEMENT THIS MORNING HSS REPORTED A FIVE POINT THREE THREE MILLION DOLLAR LOSS FOR THE NINE MONTHS ENDED AUGUST THIRTY FIRST COMPARED WITH A ONE POINT NINE SIX MILLION DOLLAR PROFIT A YEAR EARLIER NINEMONTH REVENUE FELL TO SIXTY TWO POINT EIGHT MILLION DOLLARS FROM NINETY THREE POINT FIVE MILLION DOLLARS RYDER SYSTEM INCORPORATED CITING A STRONG PERFORMANCE IN ITS VEHICLE LEASING AND SERVICES DIVISION REPORTED FOURTH QUARTER NET INCOME ROSE FIFTEEN PERCENT THE MIAMI TRANSPORTATION SERVICES COMPANY SAID NET INCREASED TO THIRTY FOUR POINT TWO MILLION DOLLARS OR FORTY FOUR CENTS A SHARE FROM TWENTY NINE POINT EIGHT MILLION DOLLARS OR THIRTY SIX CENTS A SHARE A YEAR EARLIER EXCLUDING PROFIT FROM DISCONTINUED OPERATIONS OF THREE POINT SEVEN MILLION DOLLARS EARNINGS FROM CONTINUING OPERATIONS ROSE TWENTY NINE PERCENT TO THIRTY POINT FIVE MILLION DOLLARS OR THIRTY NINE CENTS A SHARE FROM TWENTY THREE POINT SEVEN MILLION DOLLARS OR TWENTY EIGHT CENTS A SHARE REVENUE ROSE SIX POINT THREE PERCENT TO ONE POINT OH NINE BILLION DOLLARS FROM ONE POINT OH THREE BILLION DOLLARS RYDER NOTED THAT PRETAX PROFIT FROM CONTINUING OPERATIONS IN ITS VEHICLE LEASING AND SERVICES DIVISION JUMPED FIFTY PERCENT ON A SEVEN PERCENT GAIN IN REVENUE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY RYDER WAS UNCHANGED AT TWENTY SIX DOLLARS AND SEVENTY FIVE CENTS STATE FARM MUTUAL LIFE INSURANCE COMPANY WHICH INSURES MORE LOS ANGELES HOMES THAN ANY OTHER CARRIER SAID IT EXPECTED TO PAY OUT AT LEAST SIX HUNDRED MILLION DOLLARS IN CLAIMS RELATED TO THE EARTHQUAKE THE BLOOMINGTON ILLINOIS COMPANY WHICH HAS ALREADY RECEIVED EIGHTY THOUSAND CLAIMS FROM HOME CAR AND SMALL BUSINESS OWNERS SAID THE NUMBERS COULD RISE IF ADDITIONAL DAMAGE IS UNCOVERED MOST OF ITS LOSSES STEM FROM HOMEOWNERS' INSURANCE STATE FARM A UNIT OF STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY HAS ABOUT TWENTY FOUR PERCENT OF THAT MARKET IN LOS ANGELES BECAUSE THE COMPANY DOESN'T HAVE REINSURANCE WHICH ALLOWS INSURERS TO TRANSFER THE RISK AMONG THEMSELVES THE CLAIMS PAYOUTS WILL REPRESENT A NET FINANCIAL LOSS YET BECAUSE THE PROPERTY AND CASUALTY ARM HAD A NINETEEN BILLION DOLLAR SURPLUS AT YEAR END NINETEEN NINETY TWO THE DISASTER ISN'T EXPECTED TO HURT THE COMPANY MATTEL INCORPORATED POSTED A FOURTH QUARTER NET LOSS OF FORTY TWO POINT SEVEN MILLION DOLLARS OR TWENTY SIX CENTS A SHARE AFTER TAKING ONE HUNDRED FIVE POINT ONE MILLION DOLLARS IN CHARGES RELATED TO ITS ONE POINT ONE BILLION DOLLAR ACQUISITION OF FISHER PRICE INCORPORATED BUT HAD RECORD OPERATING EARNINGS FOR THE PERIOD THE CHARGES INCLUDED NINETY POINT FOUR MILLION DOLLARS IN RESTRUCTURING COSTS AND FOURTEEN POINT SEVEN MILLION DOLLARS FOR MATTEL'S EARLY PREPAYMENT OF ONE HUNDRED MILLION DOLLARS OF HIGH INTEREST DEBT THAT IT ASSUMED IN LAST YEAR'S ACQUISITION OF FISHER PRICE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MATTEL SHARES SURGED ONE DOLLAR AND SEVENTY FIVE CENTS OR SEVEN POINT FIVE PERCENT TO CLOSE AT TWENTY FIVE DOLLARS IN THE YEAR EARLIER FOURTH QUARTER CONSOLIDATED NET INCOME OF THE TOY COMPANIES WAS FORTY NINE POINT SIX MILLION DOLLARS OR TWENTY EIGHT CENTS A SHARE PER SHARE RESULTS REFLECT THE ADDITION OF SHARES ISSUED IN THE FISHER PRICE TRANSACTION AND A SUBSEQUENT FIVE FOR FOUR STOCK SPLIT IN JANUARY SALES IN THE QUARTER ROSE THREE POINT SEVEN PERCENT TO SEVEN HUNDRED FIFTY THREE POINT NINE MILLION DOLLARS FROM SEVEN HUNDRED TWENTY SEVEN MILLION DOLLARS WHILE PROFIT BEFORE THE EXTRAORDINARY CHARGES INCREASED TWENTY SIX PERCENT TO SIXTY TWO POINT FOUR MILLION DOLLARS AMERICAN PRESIDENT COMPANIES SAID ITS AMERICAN PRESIDENT LINES UNIT WOULD BEGIN A REGULAR CONTAINER TRANSPORTION SERVICE TO VIETNAM THE OAKLAND CALIFORNIA COMPANY SAID IT HAS OPENED AN OFFICE IN HO CHI MINH CITY AND THAT FULL EXPORT SERVICE FROM VIETNAM WILL BEGIN IMMEDIATELY SOME IMPORT ACTIVITY ALSO WILL BE AVAILABLE NOW WITH THE REMAINDER SUBJECT TO RESTRICTIONS EXPECTED TO BE LIFTED SHORTLY THE COMPANY SAID ITS SERVICE WILL LINK VIETNAM WITH MARKETS IN NORTH AMERICA ASIA AND THE MIDDLE EAST AMERICAN PRESIDENT SAID IT EXPECTS U. S. COMMERCE WITH VIETNAM TO GROW IN THE DOUBLE DIGIT RANGE FOR THE FORESEEABLE FUTURE FOLLOWING THE LIFTING OF THE NINETEEN YEAR U. S. TRADE EMBARGO AGAINST VIETNAM ON FEBRUARY THIRD MATHSOFT INCORPORATED CITING A CHANGING PRODUCT FOCUS SAID IT PLANS TO CUT TWENTY FIVE PERCENT OF ITS WORK FORCE ABOUT FIFTY JOBS AND TAKE A THREE MILLION DOLLAR THIRD QUARTER RESTRUCTURING CHARGE MATHSOFT SAID THE RESTRUCTURING MAY QUOTE TEMPER REVENUE GROWTH QUOTE UNTIL AN EARNINGS RECOVERY TAKES HOLD THE CAMBRIDGE MASSACHUSETTS MAKER OF CALCULATION SOFTWARE AND ELECTRONIC BOOKS SAID IT PLANS TO ELIMINATE PROGRAMS AND PRODUCTS THAT DON'T MEET ITS RETURN OBJECTIVES A SPOKESMAN FOR THE COMPANY WASN'T AVAILABLE IMMEDIATELY TO ELABORATE MATHSOFT SAID IT ALSO WILL ELIMINATE NONPERFORMING MARKETING PROGRAMS AND CONSOLIDATE FACILITIES MATHSOFT WHICH SAID THE CHARGE IS SUBJECT TO CHANGE REPORTED NET INCOME OF FIVE HUNDRED FIFTY ONE THOUSAND DOLLARS OR EIGHT CENTS A SHARE ON REVENUE OF SEVEN POINT SEVEN MILLION DOLLARS FOR THE NINETEEN NINETY THREE THIRD QUARTER THE RESULTS ARE PRO FORMA CLINTON'S HEALTH PLAN WOULD COST MORE THAN THE WHITE HOUSE PROJECTS AND WOULD INCREASE THE DEFICIT OVER THE FIRST TEN YEARS OF THE PLAN A CONGRESSIONAL BUDGET OFFICE ANALYSIS CONCLUDES IN ANOTHER BLOW TO THE PRESIDENT'S PLAN THE C. B. O. LISTED AS FEDERAL RECEIPTS THE INSURANCE PREMIUMS THAT BUSINESSES AND INDIVIDUALS WOULD BE REQUIRED TO PAY A POINT LIKELY TO AID CRITICS CHARGING THAT THE PROPOSAL AMOUNTS TO A MASSIVE TAX INCREASE HEALTH CARE COSTS FOR MANUFACTURERS WOULD BE LOWER UNDER THE PRESIDENT'S PLAN BUT WOULD INCREASE FOR CONSTRUCTION FIRMS RETAILERS AND OTHER SERVICE SECTOR EMPLOYERS TWO BROOKINGS INSTITUTION ECONOMISTS REPORT U. S. AIR SLASHED FARES UP TO FIFTY PERCENT ON FLIGHTS COMMONLY USED BY BUSINESS TRAVELERS ON MANY EAST COAST ROUTES A RISKY RESPONSE TO CONTINENTAL'S PLAN TO EXPAND ITS LOW FARE SERVICE THE CARRIER ALSO IS CUTTING LEISURE FARES AS MUCH AS SEVENTY PERCENT IN THE SAME NINETY SIX MARKETS FLEET FINANCIAL PLANS A THREE YEAR EIGHT POINT FIVE BILLION DOLLAR LOAN COMMITMENT TO BORROWERS WITH LOW TO MODERATE INCOMES AND MINORITY OWNED BUSINESSES PEOPLE CLOSE TO THE INITIATIVE SAID BOND PRICES FELL AND DEMAND WAS LACKLUSTER AT A TREASURY AUCTION SIGNS THAT SO FAR THE FED'S MOVE TO LIFT SHORT TERM INTEREST RATES AND SUBDUE INFLATIONARY PRESSURES HAS BEEN BITTER MEDICINE FOR THE U. S. BOND MARKETS STOCK PRICES WERE MIXED AND THE DOW JONES INDUSTRIALS FELL ZERO POINT TWO NINE TO THREE THOUSAND NINE HUNDRED SIX POINT OH THREE THE BANK OF ENGLAND CUT ITS BASE LENDING RATE ONE QUARTER POINT TO FIVE POINT TWO FIVE PERCENT AMID SIGNS THAT ANOTHER CUT MAY FOLLOW SPECTRUM LAUNCHED A COUNTERATTACK AIMED AT DISCREDITING JOHN SCULLEY'S CONTENTION THAT HE LEFT THE COMPANY BECAUSE HE HAD BEEN MISLED ABOUT ITS PROBLEMS SPECTRUM'S STOCK PRICE DROPPED ABOUT SIXTY FIVE PERCENT IN THE WAKE OF SCULLEY'S RESIGNATION THIS WEEK JAPAN'S HOSOKAWA HAMMERED OUT A ONE HUNDRED FORTY BILLION DOLLAR STIMULUS PACKAGE THAT ANALYSTS SAY MAY ADD ONE TO TWO PERCENTAGE POINTS TO THE NATION'S ECONOMIC GROWTH BUT THEY WARN THE TEMPORARY NATURE OF THE PROPOSAL'S TAX CUT MIGHT BLUNT ITS STIMULATIVE EFFECT SEARS POSTED A FOURTH QUARTER PROFIT REBOUNDING FROM A YEAR AGO LOSS BUT BELOW WHAT SOME ANALYSTS HAD EXPECTED DUE TO THE RETAILER'S PRICE CUTTING AND AD SPENDING EFFORTS SEARS SHARES DROPPED THREE DOLLARS AND TWENTY FIVE CENTS TO FORTY SEVEN DOLLARS AND SEVENTY FIVE CENTS A SEARCH PANEL FOR THE AMERICAN STOCK EXCHANGE PLANS TO RECOMMEND AS CHAIRMAN RICHARD SYRON FEDERAL RESERVE BANK OF BOSTON PRESIDENT PFIZER IS WORKING TO FORM A CONSORTIUM OF MAJOR DRUG COMPANIES THAT WOULD SELL A POOL OF THEIR PRESCRIPTION MEDICINES TO BIG INSTITUTIONAL BUYERS ALLIEDSIGNAL POSTED A TWENTY NINE PERCENT INCREASE IN FOURTH QUARTER PROFIT DECLARED A TWO FOR ONE STOCK SPLIT AND RAISED ITS QUARTERLY DIVIDEND SIXTEEN PERCENT CAPPING THE RESULTS OF A COMPANYWIDE RESTRUCTURING BID TWO BLACK FORMER MANAGERS OF T. C. I. SUED THE COMPANY ALLEGING RACIAL DISCRIMINATION AND SEEKING TO BLOCK BELL ATLANTIC'S PLANNED ACQUISITION OF T. C. I. NORTHWEST AIRLINES POSTED ITS SECOND CONSECUTIVE QUARTERLY PROFIT IN THE FOURTH PERIOD BENEFITING FROM COSTCUTTING AND MORE STABLE AIR FARES I. T. T. EMERGED AS THE FAVORED CANDIDATE IN THE BIDDING WAR FOR CIGA WITH A CASH OFFER OF ABOUT FIVE HUNDRED THIRTY POINT FIVE MILLION DOLLARS BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED TWELVE POINT OH FIVE OFF TWENTY FOUR POINT THREE SIX COMMODITIES OIL FIFTEEN DOLLARS AND TWENTY ONE CENTS A BARREL OFF FOUR CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY FOUR POINT THREE FOUR OFF ZERO POINT FOUR SIX SPOT INDEX ONE HUNDRED THIRTY POINT SIX THREE UP ZERO POINT TWO THREE DOLLAR ONE HUNDRED EIGHT POINT SEVEN FIVE YEN UP ZERO POINT ZERO FIVE ONE POINT SEVEN SIX FOUR OH MARKS UP ZERO POINT ZERO ZERO FIVE ZERO DOUGLAS AND LOMASON COMPANY SAID IT TOOK A ONE TIME CHARGE OF NINE POINT SIX MILLION DOLLARS OR TWO DOLLARS AND TWENTY EIGHT CENTS A SHARE AGAINST FOURTH QUARTER EARNINGS RELATED TO THE CLOSINGS OF FOUR MANUFACTURING FACILITIES AS A RESULT THE FARMINGTON HILLS MICHIGAN AUTO PARTS SUPPLIER POSTED A FOURTH QUARTER LOSS OF SEVEN POINT NINE MILLION DOLLARS OR ONE DOLLAR AND EIGHTY SIX CENTS A SHARE THAT COMPARES WITH A PROFIT OF THREE MILLION DOLLARS OR SEVENTY TWO CENTS A SHARE IN THE YEAR EARLIER QUARTER SALES FOR THE QUARTER CLIMBED ONE POINT NINE PERCENT TO ONE HUNDRED TWELVE POINT SIX MILLION DOLLARS FROM A YEAR EARLIER ONE HUNDRED TEN POINT FIVE MILLION DOLLARS DOUGLAS AND LOMASON SAID ITS FACTORIES IN TROY MISSOURI CLEVELAND MISSISSIPPI PHENIX CITY ALABAMA AND HAVRE DE GRACE MARYLAND WILL BE CLOSED THIS YEAR LOWERING COSTS BY FIVE MILLION DOLLARS ANNUALLY BEGINNING NEXT YEAR FOR THE FULL YEAR DOUGLAS AND LOMASON REPORTED A LOSS OF SEVEN POINT TWO MILLION DOLLARS OR ONE DOLLAR AND SEVENTY CENTS A SHARE AFTER THE CHARGE THAT COMPARES WITH YEAR EARLIER PROFIT OF EIGHT POINT EIGHT MILLION DOLLARS OR TWO DOLLARS AND TWENTY FIVE CENTS A SHARE BOOSTED BY STRONG HOLIDAY SALES BURLINGTON COAT FACTORY WAREHOUSE CORPORATION TOPPED ANALYSTS' EXPECTATIONS AND REPORTED A TWENTY EIGHT PERCENT RISE IN FISCAL SECOND QUARTER PROFIT THE BURLINGTON N. J. CLOTHING RETAILER REPORTED PROFIT FOR THE QUARTER ENDED JANUARY FIRST OF FIFTY SIX POINT ONE MILLION DOLLARS OR ONE DOLLAR AND THIRTY EIGHT CENTS A SHARE WELL AHEAD OF ANALYSTS' ESTIMATES OF ABOUT ONE DOLLAR AND TWENTY FIVE CENTS A SHARE THE COMPANY HAD PROFIT OF FORTY THREE POINT SEVEN MILLION DOLLARS OR ONE DOLLAR AND SEVEN CENTS A SHARE IN THE YEAR AGO QUARTER REVENUE ROSE TWENTY FIVE PERCENT TO SIX HUNDRED TWENTY EIGHT POINT SEVEN MILLION DOLLARS FROM SIX HUNDRED SEVEN POINT EIGHT MILLION DOLLARS BURLINGTON COAT FACTORY CHIEF FINANCIAL OFFICER ROBERT LAPENTA SAID IN AN INTERVIEW THAT STRONGER THAN EXPECTED HOLIDAY SALES TIGHTER COST CONTROLS AND LOWER COST OF MERCHANDISE CONTRIBUTED TO THE STRONG QUARTER IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THE COMPANY'S STOCK ROSE ONE DOLLAR AND TWENTY FIVE CENTS TO TWENTY THREE DOLLARS AND TWENTY FIVE CENTS HOME SHOPPING NETWORK INCORPORATED IN A MOVE TO CLEAR UP SOME LITIGATION STEMMING FROM A SCANDAL LAST YEAR SAID IT REACHED OUT OF COURT SETTLEMENTS OF SEVERAL LAWSUITS BY SHAREHOLDERS AND WOULD INCUR A RELATED CHARGE OF THIRTEEN MILLION DOLLARS TO SIXTEEN MILLION DOLLARS THE SAINT PETERSBURG FLORIDA TELEVISION HOME SHOPPING COMPANY SAID IT WOULD TAKE THE CHARGE IN THE FOURTH QUARTER BUT DIDN'T PROJECT RESULTS FOR THAT PERIOD A SPOKESWOMAN COULDN'T BE REACHED FOR COMMENT MOST OF THE LAWSUITS COVERED BY THE SETTLEMENTS WERE SPARKED BY A GALE OF CHARGES AND FEDERAL INVESTIGATIONS INTO ACCUSATIONS THAT HOME SHOPPING'S FOUNDER ROY M. SPEER AND OTHERS ENGAGED IN WRONGDOING INVOLVING THE COMPANY'S PURCHASING OPERATIONS AMONG OTHER THINGS MR. SPEER AND COLLEAGUES WERE SAID TO HAVE HELD SECRET STAKES IN THE COMPANY'S VENDORS PAID HUSH MONEY TO SILENCE WOULD BE WHISTLE BLOWERS AND RECEIVED KICKBACKS FROM SUPPLIERS A FEDERAL GRAND JURY IN TAMPA FLORIDA AND THE SECURITIES AND EXCHANGE COMMISSION ARE CONDUCTING INVESTIGATIONS INTO THE ALLEGATIONS YESTERDAY HOME SHOPPING SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO SETTLE NINE SUITS THAT WERE FILED LAST APRIL IN FEDERAL COURT IN TAMPA THE SUITS ACCUSED HOME SHOPPING OF FAILING TO FULLY DISCLOSE THE PROBLEMS UNDER THE SETTLEMENT WHICH MUST BE APPROVED BY THE COURT HOME SHOPPING WOULD CONTRIBUTE EIGHT POINT SIX MILLION DOLLARS OF A FUND TOTALING NINE POINT SIX MILLION DOLLARS THE COMPANY DIDN'T SAY WHO WOULD CONTRIBUTE THE REST IN ANOTHER SETTLEMENT THE COMPANY SAID MR. SPEER AGREED TO PAY THE COMPANY TWO MILLION DOLLARS AS PART OF THE SAME SETTLEMENT THE COMPANY AGREED TO PAY FOUR POINT FIVE MILLION DOLLARS TO WESTERN HEMISPHERE SALES INCORPORATED IN EXCHANGE FOR AMONG OTHER THINGS RELEASING HOME SHOPPING FROM A NINETEEN EIGHTY FIVE LICENSE PACT WITH WESTERN HEMISPHERE'S PREDECESSOR HOME SHOPPING ALSO SETTLED TWO CLASS ACTION SUITS FILED IN FEDERAL AND STATE COURT IN DELAWARE TERMS OF THOSE SETTLEMENTS WEREN'T PROVIDED A LEGAL BEAT ARTICLE MONDAY ABOUT LITIGATION OVER NATURAL DISASTERS MISSTATED THE FIRST NAME OF AN IRVINE CALIFORNIA PLAINTIFFS' ATTORNEY HE IS DAVID G. EPSTEIN DETROIT DIESEL CORPORATION'S FOURTH QUARTER EARNINGS OF THIRTY ONE CENTS A SHARE EXCEEDED THE AVERAGE OF FOUR ANALYSTS' ESTIMATES BECAUSE OF AN ERROR IN THE ZACKS INVESTMENT RESEARCH DATABASE DETROIT DIESEL WAS INCORRECTLY SHOWN AS A NEGATIVE SURPRISE IN YESTERDAY'S QUARTERLY EARNINGS SURPRISES TABLE U. S. A. A. INVESTMENT MANAGEMENT COMPANY'S CORNERSTONE FUND BEAT THE LIPPER ANALYTICAL SERVICES INCORPORATED INDEX OF GLOBAL FLEXIBLE MUTUAL FUNDS BY NEARLY FOURTEEN PERCENTAGE POINTS ON A FIVE YEAR BASIS AN ARTICLE IN THE JANUARY TWENTY SIXTH ISSUE OF TEXAS JOURNAL INCORRECTLY COMPARED THE FUND TO LIPPER'S BALANCED FUND INDEX WILLIAM R. LEWIS WAS NAMED CHIEF FINANCIAL OFFICER AND TREASURER OF THIS WEIGHT LOSS SERVICE CONCERN SUCCEEDING W. JAMES MALLEN FIFTY YEARS OLD WHO IS RETIRING MR. LEWIS FIFTY ONE PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF NUTRI SLASH SYSTEM INCORPORATED THE PARENTS OF A DECEASED FLORIDA CHILD SUED COPLEY PHARMACEUTICAL INCORPORATED ALLEGING THEIR TWENTY SIX MONTH OLD BOY DIED AS A RESULT OF TAKING COPLEY'S RECALLED MEDICATION ALBUTEROL THE LAWSUIT WHICH CLAIMS CLASSACTION STATUS WAS THE FIRST IN WHICH PLAINTIFFS LINKED THE DRUG TO A DEATH COPLEY OF CANTON MASSACHUSETTS RECALLED ALBUTEROL LAST MONTH AFTER FINDING BACTERIA IN THE DRUG WHICH IS USED AS AN INHALANT A COPLEY REPRESENTATIVE COULDN'T BE REACHED FOR COMMENT THE COMPANY HAS DECLINED COMMENT ON OTHER LAWSUITS ALLEGING A LINK BETWEEN ALBUTEROL AND SERIOUS ILLNESS IN CHILDREN IN ILLINOIS AND ARIZONA THE SUIT WAS FILED IN STATE COURT HERE BY PATRICIA AND RODNEY STEBBINS THERE HAS BEEN NO RULING ON ITS REQUEST FOR CLASS ACTION STATUS U. S. OFFICIALS ISSUED NEW GUIDELINES FOR DOCTORS AND PATIENTS THAT COULD TRANSFORM TREATMENT FOR AN ENLARGED PROSTATE A CONDITION THAT AFFLICTS ABOUT HALF OF MEN OVER AGE FIFTY IF THE GUIDELINES ARE WIDELY FOLLOWED THEY WOULD LIKELY LEAD TO LESS SURGERY AND FEWER DIAGNOSTIC TESTS THAN ARE NOW PERFORMED IN MANAGING THE AILMENT THEY CALL FOR PATIENTS TO TAKE A PRIMARY ROLE IN DECIDING WHETHER SURGERY MEDICATION OR JUST MONITORING SYMPTOMS WITHOUT TREATMENT IS THE BEST COURSE TO FOLLOW KNOWN AS BENIGN PROSTATIC HYPERPLASIA OR BPH AN ENLARGED PROSTATE RESTRICTS OR OBSTRUCTS THE FLOW OF URINE FROM THE BLADDER THROUGH THE PENIS CAUSING FREQUENT AND URGENT URINATION AND RELATED SYMPTOMS IT ISN'T RELATED TO OR A CAUSE OF PROSTATE CANCER THE MOST COMMON TREATMENT IS SURGERY WHICH WAS PERFORMED ON MORE THAN TWO HUNDRED TWENTY THOUSAND MEDICARE PATIENTS IN NINETEEN NINETY TWO AT A COST OF MORE THAN ONE BILLION DOLLARS BOTH THE COST AND THE FACT THAT DOCTORS VARY WIDELY IN PRESCRIBING TREATMENTS PROMPTED U. S. HEALTH OFFICIALS TO CONSIDER BPH AS A MAJOR CANDIDATE FOR AN INITIATIVE TO DEVELOP GUIDELINES FOR A VARIETY OF COMMON DISEASES AT THE SAME TIME NEW TREATMENT ALTERNATIVES INCLUDING DRUGS MARKETED BY MERCK AND COMPANY AND ABBOTT LABORATORIES HAVE RECENTLY BEEN APPROVED BY U. S. REGULATORS ADDING TO OPTIONS FOR BOTH DOCTORS AND PATIENTS QUOTE THERE'S BEEN A TENDENCY TO INTERVENE WITH SURGERY TOO QUICKLY RATHER THAN CONSIDER OPTIONS QUOTE SAID JARRETT CLINTON ADMINISTRATOR OF THE AGENCY FOR HEALTH CARE POLICY AND RESEARCH A DIVISION OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES WHICH ANNOUNCED THE GUIDELINES OUR ANALYSIS CLEARLY DEMONSTRATES THAT SURGERY IS THE MOST EFFECTIVE TREATMENT FOR BPH ADDED JOHN D. MCCONNELL CHAIRMAN OF UROLOGY AT UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTER DALLAS AND CHAIRMAN OF A THIRTEEN MEMBER EXPERT PANEL THAT DEVELOPED THE GUIDELINES BUT NOT ALL PATIENTS NEED OR DESIRE THE MOST EFFECTIVE THERAPY THE GUIDELINES URGE DOCTORS TO CURTAIL USE OF TWO WIDELY USED DIAGNOSTIC TESTS AND RELY INSTEAD ON A NEW SEVEN ITEM QUESTIONNAIRE YIELDING A SYMPTOM SCORE ON A THIRTY FIVE POINT SCALE THAT INDICATES HOW SEVERELY BPH IS AFFECTING A PATIENT'S QUALITY OF LIFE SINCE SOME MEN LIVE COMFORTABLY WITH SYMPTOMS THAT OTHERS CONSIDER SEVERE THE GUIDELINES SAY A FOCUS ON A PATIENT'S VIEW OF SYMPTOMS RATHER THAN CLINICAL TESTS WILL LEAD TO MORE APPROPRIATE TREATMENT THE SYMPTOM SCORE IS A VERY PIVOTAL PART OF THE WORK UP AND IS ONE OF THE THINGS THAT BRINGS THE PATIENT INTO THE PROCESS SAID DOCTOR MCCONNELL THIS IS GOING TO BE A NEW CONCEPT FOR MANY PHYSICIANS THE QUESTIONNAIRE WAS DEVELOPED BY THE AMERICAN UROLOGICAL ASSOCIATION BASED ON RESEARCH INTO TREATMENT OUTCOMES FOR BPH HEADED BY JOHN E. WENNBERG AN EPIDEMIOLOGIST AT DARTMOUTH MEDICAL SCHOOL THE NEW GUIDELINES SAY PATIENTS WITH SEVERE SYMPTOMS INCLUDING AN INABILITY TO URINATE SHOULD BE TREATED WITH SURGERY BUT ALL OTHERS SHOULD FILL OUT THE QUESTIONNAIRE AND USE THE RESULTS AS A BASIS FOR DISCUSSING TREATMENT STRATEGIES WITH THEIR PHYSICIANS THE BEST TREATMENT IS THE ONE CHOSEN BY AN INFORMED PATIENT DOCTOR MCCONNELL SAID QUOTE A PILL IS LESS EFFECTIVE THAN SURGERY BUT HAS LESS RISK WE'RE TRYING TO GET DOCTORS AWAY FROM MAKING THAT VALUE JUDGMENT THEMSELVES IT'S A PATIENT'S DECISION THE GUIDELINES ALSO SAY THAT X. RAY OR ULTRASOUND EXAMINATION OF THE KIDNEYS AND CYSTOSCOPY IN WHICH DOCTORS LOOK AT THE URINARY TRACT THROUGH A SCOPE ARE OF LITTLE USE IN DECIDING WHETHER A PATIENT NEEDS TREATMENT A NINETEEN EIGHTY NINE SURVEY FOUND THAT TWO THIRDS OF UROLOGISTS ROUTINELY USE THOSE TESTS IN EXAMINING A PATIENT WITH BPH SYMPTOMS OTHER TESTS TO MEASURE THE FLOW AND VELOCITY OF URINE AND THE PRESSURE IN THE BLADDER MAY BE HELPFUL TO SUPPLEMENT DATA OBTAINED FROM THE QUESTIONNAIRE THE GUIDELINES SAY V. F. CORPORATION WYOMISSING PENNSYLVANIA SAID FOURTH QUARTER EARNINGS FELL THIRTEEN PERCENT PARTLY REFLECTING POOR PERFORMANCE IN ITS HIGHPRICED JEANS LINE V. F. ESTIMATED FIRST QUARTER EARNINGS WOULD BE FLAT OR DOWN SLIGHTLY THE APPAREL COMPANY REPORTED QUARTERLY EARNINGS OF SIXTY ONE POINT ONE MILLION DOLLARS OR NINETY FOUR CENTS A SHARE DOWN FROM SEVENTY POINT SIX MILLION DOLLARS OR ONE DOLLAR AND EIGHTEEN CENTS A SHARE A YEAR EARLIER SALES ROSE SIX POINT SEVEN PERCENT TO ONE POINT ONE BILLION DOLLARS FROM ONE POINT OH THREE BILLION DOLLARS THE EARNINGS REFLECTED A SIXTEEN CENT A SHARE PROVISION FOR WRITE DOWNS AND RESERVES AT GIRBAUD ITS LINE OF PRICEY JEANS LAST YEAR'S FOURTH QUARTER INCLUDED A SEVENTEEN CENT A SHARE NONRECURRING GAIN V. F. SHARES DECLINED ONE DOLLAR TO FORTY FIVE POINT SIX TWO FIVE DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING LAWRENCE PUGH CHAIRMAN AND CHIEF EXECUTIVE OFFICER ATTRIBUTED THE RESULTS TO CONTINUING PROBLEMS WITH QUOTE REDUCED FLEECEWEAR VOLUME MANUFACTURING INEFFICIENCIES AT VANITY FAIR AND POOR RESULTS AT GIRBAUD QUOTE TODAY ONE OF THE LONGEST RUNNING AND MOST RESPECTED MANAGEMENT TEAMS IN BROADCASTING HISTORY BREAKS UP WITH THE RETIREMENT OF DANIEL B. BURKE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CAPITAL CITIES SLASH A. B. C. INCORPORATED MR. BURKE THE HANDS ON PARTNER TO CHAIRMAN THOMAS S. MURPHY LEAVES BIG SHOES TO FILL SO BIG THAT THEY'RE APPARENTLY GOING TO REMAIN EMPTY FOR SOME TIME AS CAPITAL CITIES EXECUTIVES GATHER THIS WEEK IN PHOENIX FOR THE COMPANY'S ANNUAL MANAGEMENT MEETING ALL EYES ARE ON THE MOST LIKELY EVENTUAL SUCCESSOR ROBERT A. IGER PRESIDENT OF THE A. B. C. TELEVISION NETWORK GROUP AND AN EXECUTIVE VICE PRESIDENT OF THE CORPORATION BUT MR. IGER WHO TURNS FORTY THREE TOMORROW HAS BEEN IN HIS CURRENT JOB FOR JUST ONE YEAR AND THE COMPANY'S BOARD ISN'T YET READY TO TURN OVER THE REINS DURING NEARLY FOUR DECADES MR. BURKE AND MR. MURPHY BUILT CAPITAL CITIES WHICH LATER MERGED WITH THE MUCH LARGER A. B. C. INTO AN ENTERTAINMENT POWERHOUSE LED BY THE A. B. C. TELEVISION NETWORK QUOTE IF YOU'RE GOING TO BE IN A NETWORK THAT'S THE NETWORK TO BE IN QUOTE SAYS TOM WOLZIEN A MEDIA ANALYST AT SANFORD C. BERNSTEIN AND COMPANY CONCERN OVER MANAGEMENT WALL STREET SEEMS TO AGREE PUSHING THE STOCK RECENTLY TO ITS RECORD HIGH OF SIX HUNDRED SEVENTY SIX DOLLARS AND FIFTY CENTS A SHARE CAPITAL CITIES SLASH A. B. C. SHARES ROSE ONE POINT THREE SEVEN FIVE DOLLARS TO CLOSE AT SIX HUNDRED SEVENTY THREE POINT SIX TWO FIVE DOLLARS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY THE ONLY CONCERN HAS BEEN THE GAP BETWEEN THE MURPHY BURKE TEAM AND THE NEXT GENERATION OF MANAGEMENT WALL STREET BEGAN TO GET NERVOUS ABOUT THE FUTURE LEADERSHIP OF THE COMPANY A YEAR AGO WHEN IT BECAME APPARENT THAT MR. BURKE INTENDED TO RETIRE ON HIS SIXTY FIFTH BIRTHDAY WHICH WAS FEBRUARY FOURTH MR. MURPHY HAD RELINQUISHED THE CHIEF EXECUTIVE TITLE TO MR. BURKE IN NINETEEN NINETY WHEN MR. MURPHY TURNED SIXTY FIVE OF THE CONTENDERS MR. IGER WHO HAS BEEN AT THE COMPANY SINCE NINETEEN SEVENTY FOUR WAS THOUGHT THE MOST LIKELY HE WAS PROMOTED TO NETWORK CHIEF IN JANUARY NINETEEN NINETY THREE AFTER A STINT AS PRESIDENT OF A. B. C. ENTERTAINMENT AND WAS NAMED EXECUTIVE VICE PRESIDENT IN JULY IN THE ABSENCE OF A READY INTERNAL CANDIDATE SEVERAL EXECUTIVES FROM OUTSIDE THE COMPANY WERE SOUNDED OUT ABOUT THE CHIEF EXECUTIVE'S JOB PEOPLE FAMILIAR WITH THE SITUATION SAY ONE OF THEM WAS ROBERT A. DALY CHAIRMAN OF TIME WARNER INCORPORATED'S WARNER BROTHERS STUDIO WHO PASSED MR. DALY DECLINED TO COMMENT THE COMPANY WAS ALSO EXPLORING STRATEGIC MERGERS OR ACQUISITIONS WITH THE POSSIBILITY THAT THE TOP JOB WOULD BE FILLED BY SOMEONE FROM THE MERGING COMPANY AT ONE POINT PEOPLE CLOSE TO THE COMPANY SAY CAPITAL CITIES TALKED WITH VIACOM INCORPORATED VIEWING ITS CHIEF EXECUTIVE FRANK BIONDI AS A POTENTIAL SUCCESSOR VIACOM IN THE MIDST OF THE BATTLE FOR PARAMOUNT COMMUNICATIONS INCORPORATED DECLINED TO COMMENT LAST NOVEMBER WITH NO DEAL IN SIGHT CAPITAL CITIES ANNOUNCED THAT MR. MURPHY WOULD REMAIN AS CHAIRMAN AND RESUME THE CHIEF EXECUTIVE TITLE WHEN MR. BURKE RETIRED THAT DECISION HAD THE ADDED ADVANTAGE OF KEEPING IN PLACE AN AGREEMENT WITH THE COMPANY'S LARGEST SHAREHOLDER WARREN BUFFETT WHOSE THIRTEEN PERCENT STAKE IS CONTROLLED BY MESSRS MURPHY AND BURKE AS LONG AS ONE OF THEM IS CHIEF EXECUTIVE THOUGH MR. MURPHY HAS NEVER PUBLICLY CROWNED MR. IGER AS THE HEIR APPARENT MR. MURPHY SAID IN A RECENT INTERNAL TELECAST TO EMPLOYEES WE FEEL THAT WE HAVE VERY ABLE PEOPLE IN PLACE RIGHT NOW THAT'LL BE ABLE TO TAKE OVER BOTH DAN'S JOB AND MY JOB THE WAY IT IS RIGHT NOW THE UNUSUAL SITUATION CAN WORK SEVERAL ANALYSTS NOTE I DON'T THINK IT'S A NEAR TERM PROBLEM AS LONG AS YOU DON'T LOSE BOTH MESSRS MURPHY AND BURKE AT THE SAME TIME SAYS OPPENHEIMER AND COMPANY INCORPORATED ANALYST JESSICA REIF STILL MANY SAY THE FAST MOVING MEDIA ENVIRONMENT MAY OVERTAKE THE LONG TERM PLAN IF CAP CITIES ENDS UP NEGOTIATING A STRATEGIC DEAL WITH A COMPANY SUCH AS TURNER BROADCASTING SYSTEM INCORPORATED WHOSE CHAIRMAN TED TURNER SAYS HE'S ON THE PROWL FOR A NETWORK WITH THE RUMORS OF MERGER TALKS THIS IS A WAY OF KEEPING THE NUMBER TWO SLOT OPEN SAYS MR. WOLZIEN IN THE MEANTIME ALL EYES WILL BE ON MR. IGER IT'S THERE FOR THE HEIRS APPARENT TO TAKE IF THEY STEP UP TO THE PLATE WITH PROGRAMMING HITS AND IMPROVED EARNINGS SAYS JOHN TINKER AN ANALYST WITH FURMAN SELZ INCORPORATED HOME DEPOT INCORPORATED IN A MOVE THAT ACCELERATES ITS PLANNED EXPANSION NORTH OF THE BORDER AGREED TO ACQUIRE SEVENTY FIVE PERCENT OF A CANADIAN HOME IMPROVEMENT CHAIN FROM MOLSON COMPANIES FOR APPROXIMATELY ONE HUNDRED FIFTY MILLION DOLLARS THROUGH ITS PARTNERSHIP WITH MOLSON AND ITS AIKENHEAD'S HOME IMPROVEMENT WAREHOUSE HOME DEPOT WILL BE OPERATING FIVE STORES IN CANADA IMMEDIATELY AND AS MANY AS TEN TO FOURTEEN STORES THERE BY YEAR END HOME DEPOT OPERATES TWO HUNDRED SIXTY NINE HOME IMPROVEMENT STORES IN THE U. S. IN ALL HOME DEPOT EXPECTS TO HAVE AT LEAST FIFTY STORES IN CANADA WITHIN FIVE YEARS SAID ARTHUR BLANK HOME DEPOT'S PRESIDENT AND CHIEF OPERATING OFFICER AIKENHEAD'S WHICH OPENED ITS FIRST STORE ALMOST TWO YEARS AGO NOW HAS FIVE OUTLETS IN THE TORONTO AREA HOME DEPOT EXPECTS ITS PARTNERSHIP WITH MOLSON TO DILUTE PER SHARE EARNINGS FOR THE YEAR ENDING NEXT JANUARY BY ONE OR TWO CENTS SAID BERNARD MARCUS HOME DEPOT'S CHAIRMAN AND CHIEF EXECUTIVE BUT HE ADDED THAT HE EXPECTS THE UNION TO BE QUOTE VERY PROFITABLE QUOTE THE FOLLOWING YEAR HOME DEPOT WILL OWN SEVENTY FIVE PERCENT AND MOLSON TWENTY FIVE PERCENT OF THE COMBINED BUSINESS TO BE CALLED HOME DEPOT CANADA WILLIAM L. TELANDER FORTY FOUR YEARS OLD PLEADED GUILTY TO FEDERAL CHARGES THAT HE FRAUDULENTLY SOLD SECURITIES IN A FOREIGN CURRENCY TRADING SCHEME THAT BILKED THREE HUNDRED EIGHTY INVESTORS OUT OF ELEVEN MILLION DOLLARS U. S. ATTORNEY THOMAS M. BROWN SAID MR. TELANDER YOUNTVILLE CALIFORNIA PLEADED GUILTY IN FEDERAL DISTRICT COURT IN LOS ANGELES TO FOUR COUNTS OF FRAUDULENT SECURITIES SALES AND TWO COUNTS OF FAILING TO FILE FEDERAL INCOME TAX RETURNS MR. TELANDER IS ALSO NEGOTIATING A RESOLUTION OF SECURITIES AND EXCHANGE COMMISSION CHARGES THAT HE VIOLATED VARIOUS SECURITIES LAWS IN THE SCHEME MR. BROWN SAID THE GOVERNMENT ALLEGED THAT MR. TELANDER FRAUDULENTLY OFFERED AND SOLD UNREGISTERED SECURITIES IN SOUTHWEST INTERNATIONAL EXCHANGE THE SECURITIES PURPORTED TO BE LIMITED PARTNERSHIP INTERESTS IN A FOREIGN CURRENCY EXCHANGE PROGRAM INVESTORS WERE TOLD THEY WOULD EARN BETWEEN TWENTY FIVE PERCENT AND FORTY ONE PERCENT ON THEIR INVESTMENTS HOWEVER SOUTHWEST INTERNATIONAL NEVER ENGAGED IN FOREIGN CURRENCY EXCHANGE TRANSACTIONS AND MR. TELANDER USED INVESTORS' FUNDS TO FINANCE VARIOUS PERSONAL INVESTMENTS TO MAKE NOMINAL PAYMENTS TO SOUTHWEST INTERNATIONAL INVESTORS AND TO COVER PERSONAL EXPENSES THE GOVERNMENT SAID MR. TELANDER AND HIS ATTORNEY COULDN'T IMMEDIATELY BE REACHED FOR COMMENT NATO WILL WEIGH A U. S. FRENCH PROPOSAL FOR ENDING THE SIEGE OF SARAJEVO THE U. S. AND FRANCE WILL ASK THE WESTERN ALLIANCE TO SET AN EARLY DEADLINE FOR WITHDRAWING ALL HEAVY WEAPONS FROM AROUND BOSNIA'S CAPITAL AND TO BACK IT UP WITH THE THREAT OF AIR STRIKES THE PROPOSAL TO BE UNVEILED TODAY IN BRUSSELS WOULD GIVE BOTH THE BOSNIAN SERBS AND THE MUSLIM LED GOVERNMENT ABOUT A WEEK TO WITHDRAW THEIR ARTILLERY MORTARS AND TANKS OR FACE ALLIED BOMBING THE CLINTON ADMINISTRATION ALSO WILL OFFER TO SEND A U. S. ENVOY TO SARAJEVO TO HELP THE MUSLIM GOVERNMENT FORMULATE A PEACE PLAN THAT COULD BE SUPPORTED BY THE U. S. BOSNIAN SERB LEADER KARADZIC DECLARED THAT ANY PLANE ATTACKING SERB FORCES WOULD BE SHOT DOWN A BELGRADE NEWS AGENCY REPORTED A MILITARY JUDGE ACCUSED THE NAVY'S TOP OFFICER OF UNLAWFULLY TRYING TO MANIPULATE THE TAILHOOK PROBE REVIVING THE QUESTION OF WHETHER ADMIRAL KELSO WOULD BE OUSTED THE JUDGE WHO DISMISSED CHARGES AGAINST THREE NAVY FLIERS IN THE SEX ABUSE SCANDAL ALSO REJECTED SOME OF KELSO'S TESTIMONY ABOUT WHAT HE SAW AT THE NINETEEN NINETY ONE CONVENTION THE STATE DEPARTMENT URGED EXILED HAITIAN PRESIDENT ARISTIDE TO LAY THE GROUNDWORK FOR A NEW GOVERNMENT BY NAMING A PRIME MINISTER HAITI HAS BEEN WITHOUT A PRIME MINISTER SINCE THE PREVIOUS ARISTIDE APPOINTEE MALVAL QUIT IN DECEMBER IRISH PRIME MINISTER REYNOLDS SENT A CONFIDENTIAL LETTER TO THE I. R. A.'S POLITICAL WING SINN FEIN URGING ACCEPTANCE OF AN ANGLO IRISH PEACE PLAN FOR NORTHERN IRELAND SINN FEIN WHICH HAS REFUSED TO BACK THE PLAN PENDING CLARIFICATION FROM BRITAIN ISN'T EXPECTED TO MAKE A FINAL DECISION UNTIL AFTER THE PARTY'S ANNUAL MEETING LATE THIS MONTH U. S. HEALTH OFFICIALS ISSUED NEW GUIDELINES FOR DOCTORS AND PATIENTS THAT COULD TRANSFORM TREATMENT FOR AN ENLARGED PROSTATE A CONDITION THAT AFFLICTS ABOUT HALF OF MEN OVER AGE FIFTY IF THE GUIDELINES ARE WIDELY FOLLOWED THEY WOULD LIKELY LEAD TO LESS SURGERY AND FEWER DIAGNOSTIC TESTS THAN ARE NOW PERFORMED A PANEL OF SCIENTISTS TOLD LAWMAKERS THAT WITH FEW EXCEPTIONS RADIATION EXPERIMENTS CONDUCTED ON HUMANS IN THE NINETEEN FORTIES AND FIFTIES APPEAR TO HAVE INVOLVED DOSES THAT WOULD LEAVE NO LONG TERM HEALTH PROBLEMS THE SENATE APPROVED CLINTON'S EDUCATION REFORM PACKAGE CALLED GOALS TWO THOUSAND AS WELL AS THE ADMINISTRATION'S SCHOOL TO WORK LEGISLATION GOALS TWO THOUSAND PASSED SEVENTY ONE TO TWENTY FIVE CREATES A NATIONAL FRAMEWORK FOR SETTING HIGH STANDARDS IN SCHOOLS ARAFAT AND PERES MET IN CAIRO BUT ISRAELI AND PALESTINIAN NEGOTIATORS SAID MORE TALKS WERE NEEDED BEFORE ISRAEL BEGINS WITHDRAWING FROM GAZA AND JERICHO AFTER THE TALKS BETWEEN THE P. L. O. LEADER AND ISRAELI FOREIGN MINISTER ISRAEL'S RABIN SAID HE EXPECTED QUOTE PROLONGED NEGOTIATIONS QUOTE BEFORE THE PEACE ACCORD CAN BE IMPLEMENTED A RIGHT WING SOUTH AFRICAN GROUP SAID TALKS WITH THE GOVERNMENT AND THE AFRICAN NATIONAL CONGRESS REACHED A DEAD END AS A RESULT THE FREEDOM ALLIANCE ANNOUNCED IT PROBABLY WOULD BOYCOTT AN APRIL VOTE THE GROUP INCLUDES THE INKATHA PARTY THE WHITE SEPARATIST AFRIKANER PEOPLE'S FRONT AND THE BOPHUTHATSWANA BLACK HOMELAND ITALY'S DEFENSE MINISTER WARNED THAT THE U. N. MISSION IN SOMALIA RISKS COLLAPSE WHEN WESTERN TROOPS LEAVE AT THE END OF MARCH AND HE CALLED FOR URGENT EFFORTS TO INITIATE TALKS INVOLVING RIVAL CLANS CLINTON'S ANTIDRUG STRATEGY WILL TARGET CHRONIC HARD CORE DRUG USE WHILE BOOSTING SPENDING ON TREATMENT AND PREVENTION ACCORDING TO A LATE DRAFT OF THE PLAN IN A STATEMENT ACCOMPANYING THE DRAFT THE PRESIDENT SAYS THE EMPHASIS ON PREVENTION DOESN'T SIGNAL A LESS AGGRESSIVE ROLE FOR LAW ENFORCEMENT AUTHORITIES THE LAST OF THE CONTRA REBELS ACCEPTED A DISARMAMENT PLAN THAT WOULD END DECADES OF WARFARE IN NICARAGUA A CATHOLIC BISHOP ANNOUNCED THE PROPOSAL CALLS FOR THE ARMY TO WITHDRAW FROM THE NORTHERN MOUNTAINS AND FOR THE INSURGENTS TO DISARM SUDANESE GOVERNMENT FORCES BOMBED REBEL HELD VILLAGES AND REFUGEE CAMPS IN SOUTHERN SUDAN WITNESSES SAID MARKING THE FOURTH RAID IN LESS THAN A WEEK AN ESTIMATED SIXTY SEVEN THOUSAND REFUGEES ARE BELIEVED TO BE FLEEING TOWARD UGANDA AHEAD OF A FEARED GROUND OFFENSIVE BY GOVERNMENT TROOPS COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE DETROIT DIESEL CORPORATION'S FOURTH QUARTER EARNINGS OF THIRTY ONE CENTS A SHARE EXCEEDED THE AVERAGE OF FOUR ANALYSTS' ESTIMATES BECAUSE OF AN ERROR IN THE ZACKS INVESTMENT RESEARCH DATABASE DETROIT DIESEL WAS INCORRECTLY SHOWN AS A NEGATIVE SURPRISE IN YESTERDAY'S QUARTERLY EARNINGS SURPRISES TABLE CHINA HAS ATTRACTED A SECOND CONSORTIUM TO EXPLORE FOR OIL IN ITS REMOTE NORTHWESTERN TARIM BASIN ITALY'S STATE OWNED OIL COMPANY AGIP COMPANY SAID IT AND FOUR OTHER FOREIGN COMPANIES SIGNED A CONTRACT WITH CHINA NATIONAL PETROLEUM CORPORATION TO EXPLORE FOR AND PRODUCE OIL IN A NINE THOUSAND EIGHT HUNDRED FOURTEEN SQUARE KILOMETER THREE THOUSAND NINE HUNDRED TWENTY FIVE POINT SIX SQUARE MILES BLOCK IN THE BASIN AN INHOSPITABLE DESERT AREA NEAR CHINA'S BORDER WITH KAZAKHSTAN IN ADDITION TO AGIP THE CONSORTIUM INCLUDES FRANCE'S SOCIETE NATIONALE ELF AQUITAINE JAPAN PETROLEUM EXPLORATION COMPANY JAPAN ENERGY COMPANY AND TEXACO INCORPORATED THE FIVE COMPANIES HAVE EQUAL TWENTY PERCENT INTERESTS IN THE VENTURE THE CONTRACT SPECIFIES THREE EXPLORATION PERIODS TOTALING EIGHT YEARS PLUS A PRODUCTION PERIOD OF FIFTEEN YEARS THE CONTRACT CAN BE RELINQUISHED AT THE END OF EACH OF THE EXPLORATION PERIODS CHINA OPENED PARTS OF TARIM TO FOREIGN COMPANIES LAST YEAR CLAIMING THE THREE HUNDRED FIFTY THOUSAND SQUARE KILOMETER ONE HUNDRED FORTY THOUSAND SQUARE MILES BASIN POTENTIALLY HELD MORE THAN SEVENTY BILLION BARRELS OF OIL AN AMOUNT THAT IF PROVEN WOULD TRIPLE THE COUNTRY'S RESERVES AND MAKE IT VIE WITH IRAN YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS ROSE IN THE LATEST WEEK ALTHOUGH MOST CHANGES WERE MODERATE THE AVERAGE YIELD ON SIX MONTH SMALL DENOMINATION OR QUOTE SAVINGS QUOTE C. D.S AT MAJOR BANKS ROSE TO TWO POINT SEVEN SEVEN PERCENT FROM TWO POINT SEVEN ONE PERCENT IN THE WEEK ENDED YESTERDAY ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE WILMINGTOM DELAWARE INFORMATION SERVICE CONCERN SAID THE AVERAGE YIELD ON FIVE YEAR SAVINGS C. D.S INCREASED TO FOUR POINT FOUR NINE PERCENT FROM FOUR POINT FOUR TWO PERCENT THE AVERAGE YIELD ON SIX MONTH C. D.S SOLD BY MAJOR BROKERAGE FIRMS ROSE TO THREE POINT ONE SEVEN PERCENT FROM THREE POINT OH TWO PERCENT BANXQUOTE REPORTED ON FIVE YEAR BROKER SOLD C. D.S THE AVERAGE YIELD ROSE TO FOUR POINT SIX FOUR PERCENT FROM FOUR POINT FOUR EIGHT PERCENT THE SURVEY SAID IN THE MULTIMEDIA WORLD OF THE FUTURE WHICH ENTERTAINMENT COMBINE WOULD BE IN A BETTER POSITION TO PROFIT FROM THE ACQUISITION OF PARAMOUNT COMMUNICATIONS INCORPORATED AS WALL STREET TRADERS TRY TO CHASE THE HIGHEST OFFER RIVAL BIDDERS Q. V. C. NETWORK INCORPORATED AND VIACOM INCORPORATED ARE TRYING TO WIN OVER LONG TERM INVESTORS WITH THEIR RESPECTIVE QUOTE VISION THING QUOTE AND IN THE PROCESS THEY ARE TRYING TO PUNCH HOLES IN EACH OTHER'S STRATEGY BUSINESS PROSPECTS AND MANAGEMENT EXPERTISE FEW ANALYSTS AND MONEY MANAGERS WILL VENTURE TO SAY WHICH COMPANY WOULD BE THE BETTER WINNER FOR THE LONGER TERM BOTH Q. V. C. AND VIACOM THEY SAY COULD EXPLOIT PARAMOUNT'S ASSETS A FILM AND T. V. LIBRARY A LEADING BOOK PUBLISHING AND INFORMATION SERVICES COMPANY THEME PARKS T. V. STATIONS AND SPORTS TEAMS WALL STREET AND HOLLYWOOD ARE IMPRESSED BY Q. V. C. CHAIRMAN BARRY DILLER'S TRACK RECORD BUT EQUALLY IMPRESSED BY THE POTENTIAL COMBINATION OF ASSETS IF VIACOM WINS FOR THE NEAR TERM VIACOM GIVES INVESTORS A VERY SOLID MEAT AND POTATOES APPROACH TO IMPROVING PARAMOUNT SAYS ED HATCH AN ANALYST AT U. B. S. SECURITIES FOR THE LONGER TERM FOUR FIVE OR SIX YEARS DOWN THE ROAD Q. V. C.'S PROPOSALS SUCH AS PLANS TO OFFER NEW SPECIALIZED CHANNELS TANTALIZE INVESTORS' IMAGINATIONS WITH NEW REVENUE STREAMS ADDS JOHN TINKER AN ANALYST AT FURMAN SELZ INCORPORATED BOTH SIDES BRING INCREDIBLY STRONG ARGUMENTS TO THE TABLE WHICH IS ONE REASON THIS HAS BEEN SUCH A LONG DRAWNOUT BATTLE MR. DILLER CONTINUED YESTERDAY TO PROMOTE HIS RECORD AS AN ENTERTAINMENT IMPRESARIO WHO HAS RUN TWO STUDIOS AND STARTED A BROADCAST NETWORK BUTTRESSED BY FORMIDABLE PARTNERS WITH INTERESTS IN TELECOMMUNICATIONS PUBLISHING AND CABLE T. V. Q. V. C. WARNS THAT VIACOM'S BUSINESSES NOTABLY M. T. V. NETWORKS AND THE SHOWTIME PAY T. V. CHANNEL FACE HUGE COMPETITIVE THREATS IN THE FUTURE FOR ITS PART VIACOM WHICH HAS AGREED TO MERGE WITH BLOCKBUSTER ENTERTAINMENT CORPORATION IS HAWKING THE RELATIVE MERITS OF ITS CABLE T. V. POWERHOUSE COMBINED WITH THE LEADING VIDEO AND MUSIC RETAILER AND STRONG FINANCIAL AND STRATEGIC MANAGEMENT FROM SUMNER REDSTONE AND THE COMPANY'S CHIEF EXECUTIVE FRANK BIONDI VIACOM ARGUES THAT Q. V. C. FACES FAR MORE COMPETITIVE THREATS IN ITS BASIC HOME SHOPPING BUSINESS AND SAYS MR. DILLER'S TALENTS AS A MANAGER ARE BEING GIVEN TOO MUCH WEIGHT ANALYSTS AND OBSERVERS AGREE THAT FOR ALL THEIR OPPORTUNITIES Q. V. C. AND VIACOM FACE DAUNTING RISKS EITHER ONE WOULD BE HEAVILY BURDENED WITH DEBT LAST WEEK PARAMOUNT SAID IT EXPECTS TO REPORT A LOSS OF ABOUT THIRTY FIVE MILLION DOLLARS TO FORTY MILLION DOLLARS FOR THE FISCAL THIRD QUARTER ENDED JANUARY THIRTY FIRST THOUGH VIACOM OFFICIALS ARE READY TO DECLARE VICTORY IN THE BATTLE THEY CONTINUED YESTERDAY TO TRY TO PERSUADE LONGERTERM INVESTORS THAT VIACOM'S BUSINESSES BETTER COMPLEMENT PARAMOUNT'S VIACOM ARGUES THAT THE ADDITION OF BLOCKBUSTER'S VIDEO AND MUSIC RETAILING OPERATIONS BRINGS EVEN MORE POTENTIAL FOR SYNERGY AND NOTES THAT BLOCKBUSTER HAS ITS OWN LIBRARY OF T. V. PROGRAMS Q. V. C. COUNTERS THAT BLOCKBUSTER'S VIDEO RETAILING BUSINESS IS DOOMED TO GO THE WAY OF THE BUGGY WHIP WHEN THE INFORMATION HIGHWAY PROVIDES FIVE HUNDRED CHANNELS AND INSTANT MOVIES ON DEMAND VIACOM MAINTAINS THAT BLOCKBUSTER'S HUGE CASH FLOW WILL HELP PAY FOR OTHER GROWTH BUSINESSES AND THAT IN ANY EVENT VIDEO AND MUSIC RETAILING STILL HAVE OPPORTUNITIES IN THE U. S. AND GROWTH POTENTIAL OVERSEAS VIACOM IS ALSO STRESSING TO INVESTORS THAT A COMBINED VIACOM BLOCKBUSTER PARAMOUNT WILL HAVE TOTAL ASSETS OF MORE THAN TWENTY FOUR BILLION DOLLARS IN MORE THAN TWENTY FIVE LINES OF BUSINESS AND WILL BE THE LARGEST BUYER IN HOLLYWOOD GIVING IT MUSCLE TO MAKE GOOD DEALS WITH SUPPLIERS IT SEES HUGE CROSS PROMOTIONAL OPPORTUNITIES BETWEEN BLOCKBUSTER'S MUSIC RETAILING AND M. T. V. AND VIDEO RETAILING AND PARAMOUNT'S THEATER OPERATIONS THOUGH MANY ON WALL STREET HAIL THE BLOCKBUSTER MERGER AS A STRATEGIC COUP FOR VIACOM OTHERS ARE LESS IMPRESSED MARIO GABELLI A FUND MANAGER WHO CONTROLS MORE THAN FOUR MILLION PARAMOUNT SHARES VIEWS BLOCKBUSTER AS A BIG ALBATROSS THAT MAKES IT ALL TOO CUMBERSOME HE ADDS QUOTE I'D LIKE TO SEE THAT EGG UNSCRAMBLED QUOTE IN ATTACKING EACH OTHER BOTH VIACOM AND Q. V. C. SAY THE OTHER FACES HUGE COMPETITIVE THREATS RECENTLY FOR EXAMPLE THE WORLD'S LARGEST RECORD COMPANIES LED BY TIME WARNER INCORPORATED AND SONY CORPORATION ANNOUNCED THE FORMATION OF A GLOBAL VENTURE THAT WILL COMPETE WITH M. T. V.'S MUSIC VIDEO NETWORK THOUGH TIME AND SONY SAY THEY WON'T KEEP MUSIC VIDEOS PRODUCED BY THEIR RECORD UNITS AWAY FROM M. T. V. Q. V. C. ARGUES THAT THE COMPETITION COULD SERIOUSLY HAMPER M. T. V.'S PROSPECTS VIACOM SAYS IT ISN'T WORRIED ABOUT COMPETITION IN A MEMO TO PARAMOUNT'S INVESTMENT BANKERS Q. V. C. ALSO ARGUES THAT VIACOM'S SHOWTIME NETWORK WHICH IS A DISTANT SECOND TO TIME WARNER'S HOME BOX OFFICE IS A DECLINING ASSET UNDER PRESSURE Q. V. C. WARNS THAT SHOWTIME COULD BE CRUSHED BY COMPETITION FROM A NEW PAY T. V. SERVICE ENCORE WHICH IS CONTROLLED BY CABLE GIANT TELE COMMUNICATIONS INCORPORATED AND Q. V. C. ARGUES THAT VIACOM'S HUGE ANTITRUST SUIT AGAINST T. C. I. AND OTHERS LEAVES THE COMPANY IN A VULNERABLE POSITION WITH REGARD TO THE DISTRIBUTION OF NEW PROGRAMMING VIACOM SAYS THAT IN Q. V. C.'S BASIC HOME SHOPPING BUSINESS THE COMPANY FACES ITS OWN DANGEROUS COMPETITION BECAUSE OF THE CANCELLATION LAST YEAR OF Q. V. C.'S MERGER WITH RIVAL HOME SHOPPING NETWORK INCORPORATED ALSO CONTROLLED BY T. C. I. AND A NUMBER OF OTHER HOME SHOPPING SERVICES ARE IN THE WORKS SOME ON WALL STREET BELIEVE THAT VIACOM HAS NOT ONLY THE BEST OFFER BUT ALSO THE BEST STRATEGIC LONG TERM POSITION THE VIACOM PARAMOUNT BLOCKBUSTER COMBINATION IS A MUCH STRONGER COMBINATION STRATEGICALLY FROM ANY POINT OF VIEW IN TERMS OF GROWTH COST CUTTING AND MANAGEMENT SAYS NANDITA PARKER AN ANALYST AT GERARD KLAUER MATTISON I DON'T THINK ONE MAN AS IN BARRY DILLER CAN CREATE OR DUPLICATE SHAREHOLDER VALUE TO THE EXTENT VIACOM BLOCKBUSTER CAN BUT MR. DILLER STILL HAS HIS PARTISANS THOUGH MESSRS REDSTONE AND BIONDI ARE ADMIRED FOR THEIR STRATEGIC AND FINANCIAL SKILLS NEITHER HAS EVER RUN A CREATIVE BUSINESS AND THERE IS NO ONE AT VIACOM EXPERIENCED IN FILMED ENTERTAINMENT MANAGEMENT MR. DILLER BY CONTRAST RAN THE A. B. C. NETWORK OVERSAW BOTH THE PARAMOUNT AND FOX MOVIE STUDIOS AND STARTED THE FOX NETWORK FOR PARENT NEWS CORPORATION MR. GABELLI THE FUND MANAGER SAYS HE HAS TO TENDER HIS SHARES TO VIACOM UNDER THE CURRENT BIDS TO PROTECT HIS INVESTMENT AS FOR LONG TERM STRATEGY I'M COMFORTABLE WITH BOTH VIACOM AND Q. V. C. MR. HE SAYS QUOTE BUT MY SENSE IS THAT BARRY CAN PROBABLY RUN IT BETTER QUOTE EASTMAN KODAK COMPANY AND THE ASSOCIATED PRESS INTRODUCED A JOINTLY DEVELOPED FILMLESS CAMERA THE FIRST OF ITS KIND DESIGNED SPECIFICALLY FOR NEWS PHOTOGRAPHERS THE NEWSCAMERA TWO THOUSAND WILL BE DISTRIBUTED EXCLUSIVELY BY NEW YORK BASED A. P. WHICH WILL BUY THE CAMERAS FROM KODAK BASED IN ROCHESTER N. Y. AND SELL THEM TO MEMBER NEWSPAPERS SUBSCRIBERS AND OTHERS THE COST IS ABOUT TWENTY SIX THOUSAND DOLLARS FOR THE CAMERA THREE REMOVABLE REUSABLE MEMORY CARTRIDGES AND A PORTABLE SCANNER AND TRANSMITTER BUT THE DEVICE COULD SAVE FILM AND DEVELOPING COSTS AN A. P. OFFICIAL SAID THE DIGITAL CAMERA CAPTURES IMAGES AS COMPUTER DATA RATHER THAN AS CHEMICAL CHANGES ON FILM PHOTOGRAPHERS ON DEADLINE THEREFORE CAN SHOOT PICTURES AND DELIVER THEM ELECTRONICALLY THROUGH A PHONE TO NEWSPAPERS WITHOUT LEAVING THE SCENE OR HASSLING WITH DEVELOPMENT DIGITAL CAMERAS AREN'T NEW ALTHOUGH THE N. C. TWO THOUSAND IS THE QUOTE ONLY ONE OUT THERE DEVOTED TO PHOTOJOURNALISM QUOTE IS FASTER AND WORKS IN MORE VARIED LIGHTING SAID JOHN LARISH AN ELECTRONIC IMAGING CONSULTANT THE ALLIANCE IS MUTUALLY BENEFICIAL TO A. P. WHERE SWIFTNESS IS CRUCIAL FOR THE NEWS WIRE SERVICE AND TO KODAK WHICH HAS A NICHE MARKET FOR SUCH CAMERAS ORDERS WON'T BE FILLED FOR MORE THAN A MONTH PROUST WROTE THAT THE SOULS OF THOSE WE HAVE LOST ARE CAPTURED IN NATURAL OBJECTS ANIMALS PLANTS STONES PASTRIES IF WE COME UPON THEM AND RECOGNIZE THEIR VOICES THEY RETURN TO SHARE OUR LIVES BUT IT DEPENDS ON CHANCE WHETHER OR NOT WE CAN RECAPTURE OUR PASTS QUOTE BEFORE WE OURSELVES MUST DIE QUOTE MICHAEL SMITH WITH CO AUTHOR PETER GLAZER HAS RECAPTURED HIS IN AN IRRESISTIBLY EVOCATIVE MUSICAL THEATER PIECE CALLED MICHAEL MARGARET PAT AND KATE AND SUBTITLED A MUSICAL REMINISCENCE THE OBJECTS IN WHICH MR. SMITH'S LOST SOULS LURK INCLUDE THE GLOOM OF THE CONFESSIONAL AND THE HARD CLASSROOM BENCHES OF OUR LADY OF THE VALLEY IN ORANGE N. J. A SCRATCHY RECORDING OF MR. SMITH SINGING PAPER DOLL AT AGE FOUR THE SMELL OF SURF AT THE LOCAL BEACH CAR TRIPS TO PENNSYLVANIA THE BEER STENCH ON HIS FATHER'S BREATH THE REEK OF KEROSENE AND RAW LUMBER IN HIS FIRST GIRLFRIEND'S HOUSE ACROSS THE TRACKS THE SOUND OF THE RADIO PLAYING NAT KING COLE SINGING SOMEWHERE ALONG THE WAY THE SHARP FORTIES SUITS AND FEDORAS OF THE BAND IN THE BRIGHTLY LIT GAZEBO FLORIDA'S CLEAR BLUE SKIES SAINT PETERSBURG'S SPANISH BUILDINGS ALL IN WILD PASTELS ALL THESE AND MANY MORE ARE EVOKED IN AN AUTOBIOGRAPHICAL EVENING OF CONSISTENTLY FUNNY AND MOVING MONOLOGUE AND SONG MR. SMITH IS A FOLK SINGER WHO HAS COMPOSED MUSIC FOR STEVE GOODMAN JIMMY BUFFET AND THE TONY AWARD WINNING STEPPENWOLF THEATRE COMPANY PRODUCTION OF THE GRAPES OF WRATH FOR MICHAEL MARGARET PAT AND KATE HE COMPOSED AND PERFORMS A DOZEN NUMBERS IN STYLES RANGING FROM FOLK TO ROCK BUT HE HAS ALSO ASSEMBLED ARTIFACTS OF HIS LIFE INCLUDING FAMILY PHOTOS AND A LIFETIME OF LETTERS FROM HIS THREE SISTERS THIS MIGHT HAVE AMOUNTED TO NO MORE THAN A VEHICLE FOR MR. SMITH TO VENT ANGER AND DESPAIR HIS LIFE HAS HAD MORE THAN ITS SHARE OF DARK MOMENTS HE ABANDONED HIS FIRST REAL GIRLFRIEND WHEN SHE GOT PREGNANT HE SPENT MANY NIGHTS SLEEPING ON THE EMPTY STAGES OF THE COFFEEHOUSES THAT BOOKED HIM FOR PENNIES HIS FATHER COMMITTED SUICIDE THE PLAY MIGHT ALSO JUST AS WELL HAVE BEEN A SET OF MEMORIES OF ABUSE FROM SIBLINGS PARENTS AND PRIESTS A SAVAGE ATTACK ON THE MOTHER CHURCH OR ANOTHER DEBATE ABOUT FAMILY VALUES INSTEAD WE ARE ENTERTAINED AND MOVED BY A MAN WHO SEEMS ALMOST IMPOSSIBLY COMFORTABLE IN HIS OWN SKIN HE NEVER BECAME A STAR ABOUT FIVE FOLK SINGERS GOT TO BE MILLIONAIRES AND THREE OF THEM WERE BOB DYLAN HIS SISTERS ENDED UP PLUMP RESPONSIBLE ADULTS RAISING CHILDREN OF THEIR OWN QUOTE I'M TOO SHORT TO BE A GRANDMOTHER QUOTE SAYS KATE IN ONE OF HER LAST LETTERS THIS IS A ONE MAN SHOW AND YET IT'S NOT SHARING THE STAGE ARE FOUR ADDITIONAL MUSICIANS PAT FLEMING ON GUITAR JOEL MACMILLAN BASS MIRIAM STURM VIOLIN AND WILLY SCHWARZ ACCORDION THEY DO MORE THAN PLAY MUSIC THEY PLAY ROLES UNCLE JOHNNY BACK FROM BURMA AFTER WORLD WAR TWO MARGARET AT AGE THREE MESSING UP AN AMATEUR RECORDING SESSION COFFEEHOUSE BEATNIKS SINGERS DANCERS FRIENDS AND WHATEVER ELSE NEEDS FILLING OUT MR. SMITH IS ESPECIALLY BLESSED WITH THE PRESENCE OF THE RADIANT AND TALENTED MS. STURM WHO RECENTLY HAS MADE SERIOUS CONTRIBUTIONS TO THE SUCCESS OF SEVERAL OTHER THEATER PIECES INCLUDING THE GOODMAN THEATRE'S BLACK SNOW AND THE BROADWAY PRODUCTION OF GRAPES OF WRATH AN ACCOMPLISHED FIDDLER MS. STURM ALSO MOVES LIKE A STORYBOOK PRINCESS SOON NO PLAYWRIGHT WHO CAN CAST MS. STURM WILL WANT TO MISS THE CHANCE TO CREATE A FIDDLE PLAYING PRESENCE ON STAGE CO AUTHOR PETER GLAZER ALSO DIRECTS MICHAEL MARGARET PAT AND KATE MR. GLAZER HAS MADE A SPECIALTY OF THE SMALL ENSEMBLE MUSICAL WHICH SEEMS TO DO ESPECIALLY WELL IN CHICAGO HE DIRECTED THE LOCAL PRODUCTION OF THE CABARET STYLE PUMP BOYS AND DINETTES WHICH RAN FOR FIVE YEARS AND CREATED WOODY GUTHRIE'S AMERICAN SONG CURRENTLY ENDING A LONG RUN HERE HIS EXPERIENCE SERVES HIM WELL WITH MR. SMITH'S AUTOBIOGRAPHY THE SCRIPT IS DENSE AND MAY BE A BIT TOO LONG IN THE FIRST ACT BUT MR. GLAZER PROVIDES THE ESSENTIAL DAM TO MR. SMITH'S STREAM OF CONSCIOUSNESS JAMES DARDENNE'S SET IMAGINATIVELY SUGGESTS THE PHYSICAL ARTIFACTS OF MR. SMITH S. REMEMBRANCES HE HAS COLLECTED LOTS OF FURNITURE AND STAINED GLASS OF THE KIND POPULAR IN THE FORTIES AND FIFTIES AND PROVIDES OLD FASHIONED WINDOWS THAT SERVE ALSO AS PROJECTION SCREENS FOR THE ESSENTIAL FAMILY PHOTOS THE BEST WAS TAKEN OF MARGARET'S FIRST COMMUNION AND HAS THE FOUR CLEANED AND POLISHED SIBLINGS LINED UP WITH THEIR HANDS FOLDED THE WAY THE NUNS TAUGHT THEM IN THIS PHOTO MICHAEL THE OLDEST AND TALLEST HAS HIS HEAD CUT OFF I DON'T KNOW WHETHER MR. SMITH INTENDED HIS HEADLESS IMAGE AS MORE THAN A FUNNY SNAPSHOT OF THIS LOVING YOUNG FAMILY BUT IT NOT ONLY REPRESENTS WHAT'S WONDERFUL BUT ALSO WHAT'S MISSING IN THIS WORK MICHAEL MARGARET PAT AND KATE IS A WORK OF MR. SMITH'S HEART NOT HIS HEAD HE DOESN'T EXPLORE HIS FATHER'S SUICIDE ALL WE LEARN IS THAT MOM AND DAD WERE HAVING ARGUMENTS AND THE KIDS HATED THE SMELL OF BEER THE EVENING'S CLIMAX HOWEVER IS MR. SMITH'S SIMPLE PAINFUL SONG QUOTE I BROUGHT MY FATHER WITH MAINE QUOTE IT IS A BEAUTIFUL MOMENT AND MAYBE THE REASON THAT MR. SMITH CAN OFFER US THIS MOMENT IS BECAUSE HE CAN LET GO AND FORGIVE WITHOUT UNDERSTANDING WHY MAYBE HE'S GOT THE RIGHT IDEA THIS VICTORY GARDENS PRODUCTION WILL RUN THROUGH MARCH THIRTEENTH THE UNITED AUTO WORKERS UNION WARNED GENERAL MOTORS CORPORATION IT COULD STRIKE A KEY FLINT MICHIGAN COMPLEX OF SEVEN PARTS MAKING FACTORIES AS SOON AS TEN A. M. TUESDAY THE SEVEN FACTORIES IN THE COMPLEX MAKE SPARK PLUGS FUEL PUMPS INSTRUMENT CLUSTERS AND OTHER PARTS FOR G. M.'S A. C. ROCHESTER AND DELCO ELECTRONIC PARTS DIVISIONS A STRIKE WOULD IDLE NUMEROUS ASSEMBLY PLANTS WITHIN DAYS THUS THE FINANCIAL EFFECT TO THE COMPANY WOULD BE MUCH GREATER THAN A WORK STOPPAGE AT A SINGLE ASSEMBLY PLANT LIKE THE FOUR DAY STRIKE THAT IDLED G. M.'S SHREVEPORT LOUISIANA TRUCK PLANT LAST MONTH THE SIX THOUSAND EIGHT HUNDRED U. A. W. REPRESENTED WORKERS IN THE FLINT COMPLEX HAVE YET TO REACH A LOCAL AGREEMENT WITH G. M. NEITHER THE COMPANY NOR THE UNION IS SAYING WHAT ISSUES ARE UNRESOLVED STEPHEN P. YOKICH THE U. A. W.'S TOP G. M. NEGOTIATOR SAID LAST MONTH THE UNION WAS PUSHING G. M. TO REACH LOCAL AGREEMENTS AT ITS TRUCK PLANTS AND AFTER THAT THE UNION PLANNED TO TURN UP THE PRESSURE ON G. M. PARTS PLANTS MANY OF WHICH ALSO DON'T HAVE LOCAL LABOR CONTRACTS G. M. SETTLED ITS LATEST LOCAL AGREEMENT AT A TRUCK PLANT THIS WEEK THE SENATE PASSED PRESIDENT CLINTON'S MAJOR EDUCATION REFORM PACKAGE AS WELL AS THE ADMINISTRATION'S PIONEERING SCHOOL TO WORK LEGISLATION AFTER FOUR DAYS OF DEBATE THE SENATE ALSO APPROVED THE FIRST FEDERAL PROGRAM AIMED AT REDUCING VIOLENCE IN THE SCHOOLS THE HOUSE EDUCATION AND LABOR COMMITTEE MEANWHILE COMPROMISED ON THE MOST CONTROVERSIAL PART OF THE ADMINISTRATION'S OTHER EDUCATION INITIATIVE APPROVING SEVEN BILLION DOLLARS FOR DISADVANTAGED CHILDREN WHILE CONCENTRATING ONE POINT FOUR BILLION DOLLARS OF THE FUNDS ON THE POOREST SCHOOL DISTRICTS THE EDUCATION REFORM PACKAGE CALLED GOALS TWO THOUSAND AND THE SCHOOL TO WORK LEGISLATION NOW GO TO A CONFERENCE COMMITTEE WITH THE HOUSE WHICH PASSED SIMILAR VERSIONS OF THE BILLS THE HOUSE HAS YET TO CONSIDER THE SAFE SCHOOLS ACT GOALS TWO THOUSAND WHICH THE SENATE PASSED SEVENTY ONE TO TWENTY FIVE CREATES A NATIONAL FRAMEWORK FOR SETTING HIGH STANDARDS IN SCHOOLS THE FOUR HUNDRED TWENTY TWO MILLION DOLLAR PLAN ESTABLISHES EIGHT NATIONAL EDUCATION GOALS AND SETS UP A PANEL TO DEVISE MODEL ACADEMIC AND TESTING STANDARDS IT ALSO CREATES A NATIONAL SKILL STANDARDS BOARD THAT WOULD DETERMINE WHAT SKILLS EMPLOYEES NEED TO WORK IN VARIOUS INDUSTRIES QUOTE THIS IS A BOTTOMS UP EDUCATION REFORM WITH SUPPORT FROM THE TOP DOWN QUOTE SAID SENATOR EDWARD KENNEDY D. MASSACHUSETTS THE BILL'S MAIN SPONSOR GOALS TWO THOUSAND ENCOURAGES SCHOOL REFORM BUT DOESN'T MANDATE ANYTHING IF STATES WANT TO GET FEDERAL MONEY TO REFORM THEIR SCHOOLS THEY MUST SUBMIT COMPREHENSIVE PLANS TO THE EDUCATION DEPARTMENT THAT EXPLAIN HOW THEY WOULD REACH THE NATIONAL EDUCATION GOALS THEY AREN'T REQUIRED TO ADOPT ANY OF THE VOLUNTARY STANDARDS BUT RATHER ARE ENCOURAGED TO USE THEM TO DEVISE PLANS TO MEET THEIR LOCAL NEEDS SINCE THE FEDERAL GOVERNMENT CONTRIBUTES ONLY SIX CENTS OF EVERY DOLLAR SPENT ON EDUCATION MOST LAWMAKERS BELIEVE LOCAL DISTRICTS SHOULD CONTROL THEIR OWN SCHOOLS THE SENATE WAS SO CONCERNED THAT PEOPLE WOULD MISTAKENLY INTERPRET THE LEGISLATION AS FEDERALIZING EDUCATION OR ESTABLISHING A NATIONAL CURRICULUM THAT IT INSERTED THE WORD VOLUNTARY AT MORE THAN SEVENTY FIVE PLACES ALREADY THOUGH FORTY FIVE STATES HAVE STARTED DEVELOPING NEW ACADEMIC STANDARDS THE SENATE ALSO INCORPORATED THE SAFE SCHOOLS ACT INTO THE GOALS TWO THOUSAND BILL SETTING ASIDE ONE HUNDRED SEVENTY FIVE MILLION DOLLARS IN GRANT MONEY DURING THE NEXT TWO YEARS FOR CHRONICALLY VIOLENT SCHOOLS THESE SCHOOLS COULD RECEIVE GRANTS OF AS MUCH AS THREE MILLION DOLLARS TO SET UP CONFLICT RESOLUTION AND OTHER PROGRAMS DESIGNED TO REDUCE VIOLENCE ONLY TEN PERCENT OF THE MONEY COULD BE SPENT ON SECURITY DEVICES SUCH AS METAL DETECTORS THE SCHOOL TO WORK OPPORTUNITIES ACT WHICH PASSED SIXTY TWO TO THIRTY ONE AUTHORIZES THREE HUNDRED MILLION DOLLARS IN GRANTS FOR COMMUNITIES TO CREATE BETTER PROGRAMS FOR HIGH SCHOOL STUDENTS WHO DON'T PLAN TO GO TO COLLEGE TAKECARE INCORPORATED WHICH LAST MONTH AGREED IN PRINCIPLE TO BE ACQUIRED BY F. H. P. INTERNATIONAL CORPORATION SAID THE AGREEMENT HAS BEEN TERMINATED AND IT PLANS TO DISCUSS MERGERS WITH OTHER COMPANIES TAKECARE A HEALTH MAINTENANCE ORGANIZATION SIGNED A PRELIMINARY AGREEMENT JANUARY TENTH TO BE ACQUIRED BY F. H. P. A FOUNTAIN VALLEY CALIFORNIA BASED H. M. O. FOR EIGHT HUNDRED TWENTY NINE MILLION DOLLARS IN CASH AND SECURITIES THE MERGER WOULD HAVE CREATED ONE OF THE NATION'S TOP THREE PUBLICLY TRADED H. M. O.S HOWEVER SHORTLY AFTER THE PROPOSED MERGER WAS ANNOUNCED TAKECARE SHAREHOLDERS WHO COLLECTIVELY OWN TWENTY TWO PERCENT OF THE COMPANY FILED SUIT ALLEGING THE COMPANY'S BOARD NEGLECTED ITS FIDUCIARY DUTIES IN AGREEING TO SELL THE COMPANY AT THAT TIME TAKECARE SAID THE SUIT WAS WITHOUT MERIT AND IT WAS PROCEEDING WITH PLANS TO CLOSE THE SALE YESTERDAY A TAKECARE SPOKESMAN SAID THERE WAS QUOTE NO CONNECTION QUOTE BETWEEN THE LAWSUIT AND THE COMPANY'S ANNOUNCEMENT TERMINATING ITS AGREEMENT WITH F. H. P. TAKECARE SAID F. H. P. IS STILL BEING CONSIDERED AS A COMPANY TO MERGE WITH BUT OTHER COMPANIES HAVE EXPRESSED INTEREST SINCE ITS AGREEMENT WITH F. H. P. WAS ANNOUNCED UNITED HEALTHCARE CORPORATION OF MINNETONKA MINNESOTA HAS BEEN PURSUING US IN THE PAST THE TAKECARE SPOKESMAN SAID BUT HE DECLINED TO SAY WHOM THE COMPANY IS TALKING WITH ABOUT A POSSIBLE ACQUISITION FIRST FIDELITY BANCORP SAID THE STOCK PORTION OF ITS ACQUISITION OF PEOPLES WESTCHESTER SAVINGS BANK WAS OVERSUBSCRIBED THE TWO HUNDRED THIRTY FIVE MILLION DOLLAR OFFER CALLED FOR FORTY SIX PERCENT OF THE PEOPLES WESTCHESTER SHAREHOLDERS TO RECEIVE FIRST FIDELITY STOCK AND THE REMAINDER TO RECEIVE FORTY DOLLARS AND EIGHTY SIX CENTS A SHARE IN CASH FIRST FIDELITY BASED IN LAWRENCEVILLE N. J. SAID HOLDERS OF ABOUT ONE POINT TWO MILLION PEOPLES WESTCHESTER SHARES WHO HAD REQUESTED STOCK WOULD RECEIVE CASH INSTEAD THEY WILL BE SELECTED BY A RANDOM LOTTERY ABOUT TWO POINT SIX MILLION PEOPLES WESTCHESTER SHARES WILL BE EXCHANGED FOR STOCK AND ABOUT THREE MILLION FOR CASH PEOPLES WESTCHESTER OPERATED THIRTY ONE OFFICES IN WESTCHESTER COUNTY N. Y. FIRST FIDELITY OPERATES SIX HUNDRED FIFTY OFFICES IN CONNECTICUT NEW JERSEY PENNSYLVANIA AND NEW YORK I WAS HAVING LUNCH ONE DAY WITH GEORGE HALEY AT THE OLD ROGER SMITH HOTEL AND HE TOLD ME HIS BROTHER WAS PLANNING TO WRITE A BOOK ON HIS FAMILY'S HISTORY QUOTE YOU'RE A NICE FELLOW GEORGE QUOTE I THOUGHT TO MYSELF QUOTE BUT WHO IS GOING TO BUY A BOOK ABOUT YOUR FAMILY QUOTE IF THE PLAYWRIGHT DRURY PIFER HAD TOLD ME HE WAS GOING TO WRITE A BOOK ABOUT GROWING UP IN SOUTH AFRICA IN THE THIRTIES AND FORTIES I WOULD HAVE REACTED THE SAME WAY SO MUCH FOR INSIGHT THE HALEY BOOK TURNED OUT TO BE ROOTS DRURY PIFER'S BITTERSWEET REMEMBRANCE OF HIS FAMILY'S STRUGGLES IN A COUNTRY THAT NEVER ACCEPTED THEM INNOCENTS IN AFRICA HARCOURT BRACE THREE HUNDRED THIRTY EIGHT PAGES TWENTY FOUR DOLLARS AND NINETY FIVE CENTS TAKES ITS PLACE AMONG BOOKS LIKE ELSPETH HUXLEY'S FLAME TREES OF THIKA AS ONE OF THE BEST AUTOBIOGRAPHICAL TALES TO COME OUT OF AFRICA SOUTH AFRICA WITH THE WORLD'S BIGGEST DIAMOND MINES THE SPARTAN LIFE OF COMPANY TOWNS THE SULLEN AFRIKANERS THE HITLER RALLIES THE CONCENTRATION CAMPS AND APARTHEID IN FACT IF NOT IN LAW IS THE FASCINATING BACKGROUND OF HIS FAMILY'S STORY AND MR. PIFER TELLS IT MOVINGLY IN NINETEEN THIRTY TWO TWO STARRY EYED INNOCENTS HOCKED EVERYTHING THEY OWNED EVEN WEDDING PRESENTS BORROWED THE REST AND WENT TO SOUTH AFRICA THERE WAS NO WORK IN SEATTLE FOR GUS PIFER A MINING ENGINEER BUT A SOUTH AFRICAN MINING COMPANY OFFERED HIM A JOB NOT MUCH OF A JOB REALLY LITTLE BETTER THAN A DAY LABORER BUT PIFER WAS IN HIS SON'S WORDS ONE OF THOSE CREATURES ATTRACTED TO TREASURE TO MINERALS THAT RUN LIKE A NETWORK OF METAL NERVES UNDER THE EARTH HE JUST COULDN'T PASS UP A CHANCE TO WORK IN A GOLD MINE IN THE TRANSVAAL HE BELIEVED IN HIMSELF AND WITH HARD WORK AND KNOW HOW HE WOULD MAKE HIS NAME AND FORTUNE HIS WIFE PATRICIA BELIEVED TOO AND FOR A WHILE IT LOOKED LIKE THEIR DREAM WAS COMING TRUE GUS CAUGHT THE ATTENTION OF SIR ERNEST OPPENHEIMER WHO HIRED HIM TO RUN DIAMOND MINES FOR DEBEERS DRURY AND HIS SISTER WERE BORN AS GUS AND PATRICIA MOVED AROUND GRIM MINING TOWNS LIKE KLEINZEE IN THE NAMAQUALAND DESERT AND ORANGEMUND IN PRESENT DAY NAMIBIA GUS NEVER LEARNED HOW TO PLAY COMPANY POLITICS AND THE GREAT PROMOTIONS OPPENHEIMER PROMISED HIM ALWAYS HAD A WAY OF GOING TO OPPENHEIMER'S CRONIES THIRTEEN YEARS AFTER ARRIVING IN SOUTH AFRICA PIFER QUIT AND TOOK HIS FAMILY ON A DESPERATE ONE THOUSAND MILE JOURNEY NORTH TO THE CONGO THERE WERE NO BOATS OR PLANES FOR CIVILIANS IN NINETEEN FORTY FIVE BUT HE HAD HEARD ABOUT A NORWEGIAN FREIGHTER IN MITADI AND GAMBLED THAT HE COULD TALK THE ECCENTRIC CAPTAIN INTO TAKING THEM BACK TO THE STATES ACTUALLY DRURY'S MOTHER DID THE TALKING IF THE ELDER PIFER'S MINING CAREER WENT SOUR IN SOUTH AFRICA THE PIFER FAMILY LIFE WAS RICH AND WARM NEARLY HALF A CENTURY LATER DIARIES LETTERS HOME FAMILY PHOTO ALBUMS AND OLD HOME MOVIES OF THOSE AFRICAN DAYS CONJURED THEM UP FOR DRURY ALL OVER AGAIN THE TIMES HE SQUISHED HIMSELF ON THE BACK LEDGE OF THEIR LINCOLN ZEPHYR CLUNKER AS IT CHUGGED THROUGH THE DESERT THE AWE HE FELT FOR RUDOLPH THE KHOIKOI WHO TAUGHT HIM HOW TO RIDE THE BLASTS OFF THE ATLANTIC THAT TRANSFORMED THE ELECTRIC WIRES OF A DIAMOND MINING TOWN INTO A GREAT AEOLIAN HARP DRURY'S MOTHER WAS A WITTY ADVENTUROUS WOMAN WHO COULD WITHSTAND EVERY PRIVATION AS LONG AS SHE HAD HER PIANO IT IS SHE WHO BUOYS UP THE FAMILY THROUGH THEIR DISAPPOINTMENTS WHO GROWS GARDENS IN THE DESERT TURNS SHEDS INTO LIBRARIES EDUCATES AFRIKANER CHILDREN AND WRITES WONDERFUL LETTERS HOME THOUGH DRURY SPOKE AFRIKAANS LIKE AN AFRIKANER THE AFRIKANERS THOUGHT HE WAS ENGLISH AND DESPISED HIM NASTIER ONES TERRORIZED HIM IN GANGS AFTER SCHOOL UNTIL ONE DAY THE GANG'S LEADER THE HANDSOME BOY JUST DIED TO DRURY'S CONSIDERABLE HAPPINESS DRURY FARED EVEN WORSE WITH THE OLDER AFRIKANER POPULATION WHAT PROBABLY SEALED HIS FATE WITH THIS GROUP WAS THE SIAMESE TWINS EPISODE HE HAD JUST READ AN ARTICLE ON SIAMESE TWINS IN A SCIENTIFIC JOURNAL WHEN TO HIS AMAZEMENT HE ENCOUNTERED A TWO HEADED DOG EXCITED HE RACED NEXT DOOR TO THE HOME OF THE DOYENNE OF THE AFRIKANER COMMUNITY THE KIND OF PERSON MARGARET HAMILTON USED TO PLAY IN THE MOVIES HE DRAGGED HER OUT TO SEE HIS AMAZING PHENOMENON WHICH ON CLOSER INSPECTION TURNED OUT TO BE ACTUALLY TWO DOGS IN FLAGRANTE DELICTO SHE WENT BACK INSIDE MUTTERING SOMETHING LIKE QUOTE LITTLE PERVERT QUOTE IN AFRIKAANS HE BRINGS A PLAYWRIGHT'S SENSE OF DRAMA TO SOME OF HIS LIVELIEST DESCRIPTIONS RECALLING THE BOISTEROUS LEATHERSTRAP WIELDING BROTHER KEENE AT THE CATHOLIC SCHOOL HE ATTENDED DRURY THINKS OF A CREATURE DREDGED UP FROM THE DEPTHS OF A FROZEN LAKE IN SOME HANS CHRISTIAN ANDERSEN TALE THE NORTH WIND WHO FREEZES LITTLE KAI AND BLOWS THE SNOW QUEEN'S SLED OUT PAST THE POLE STAR DRURY PIFER NEVER RETURNED TO SOUTH AFRICA THE PEOPLE WHO WERE ONCE HIS UNIVERSE ARE DEAD NOW MOST OF THEM AND THEIR SOUTH AFRICA ENDS FOR GOOD WITH THE COUNTRY'S FIRST FREE ELECTIONS THIS APRIL THERE'S A CERTAIN SYMMETRY THAT MR. PIFER'S REMEMBRANCES OF A SOUTH AFRICA OF LONG AGO SHOULD APPEAR JUST AS THE WORLD GETS READY TO WELCOME THE SOUTH AFRICA OF THE FUTURE MR. RUDDY IS A FORMER U. S. AMBASSADOR TO EQUATORIAL GUINEA THE FEDERAL DEPOSIT INSURANCE CORPORATION CAUGHT IN THE SPOTLIGHT OF CONGRESSIONAL CRITICISM ADOPTED QUOTE INTERIM QUOTE RULES TO PREVENT INSIDER WINDFALLS WHEN STATE CHARTERED MUTUAL SAVINGS BANKS CONVERT TO STOCKHOLDER OWNED INSTITUTIONS UNDER THE RULES THE BANKS MUST SUBMIT PROPOSED CONVERSIONS TO THE AGENCY FOR ITS APPROVAL THE F. D. I. C. SAID IT IS CONCERNED THAT OFFICERS DIRECTORS AND OTHER INSIDERS AT CONVERTING INSTITUTIONS MAY BE UNJUSTLY ENRICHED AT THE EXPENSE OF DEPOSITORS OTHER CUSTOMERS AND THE F. D. I. C.'S OWN DEPOSIT INSURANCE FUND THE INSIDERS FOR EXAMPLE MAY GET MORE THAN THEIR FAIR SHARE OF THE STOCK OFFERING OR GET EXCESSIVE COMPENSATION PACKAGES THE AGENCY SAID ON JANUARY TWENTY FOURTH THE AGENCY PROPOSED GUIDELINES FOR CONVERSIONS OF STATE CHARTERED MUTUAL SAVINGS BANKS BUT DIDN'T HAVE ANY FIRM REQUIREMENTS CONVERSIONS OF THESE INSTITUTIONS WAS SUBJECT ONLY TO VARYING STATE REGULATIONS SAVINGS AND LOAN ASSOCIATIONS AND FEDERALLY CHARTERED SAVINGS BANKS CONVERTING TO STOCKHOLDER OWNERSHIP WERE SUBJECT TO LIMITS ON INSIDER COMPENSATION IMPOSED BY THE OFFICE OF THRIFT SUPERVISION THE F. D. I. C. SAID THE O. T. S. STANDARD IS ONE FACTOR IT WILL CONSIDER IN RULING ON CONVERSIONS OF STATE CHARTERED SAVINGS BANKS IT SAID IT WILL TAKE COMMENTS FOR THIRTY DAYS AND WILL DECIDE ON A FINAL APPROACH IN A FEW MONTHS REPRESENTATIVE HENRY GONZALEZ D. TEXAS THE HOUSE BANKING COMMITTEE CHAIRMAN PRAISED THE F. D. I. C. ACTION BUT SAID LEGISLATION MAY STILL BE NECESSARY TO CLOSE THE LOOPHOLE LETTING OFFICIALS OF STATE CHARTERED SAVINGS BANKS MAKE BIG BUCKS THROUGH FANCY FOOTWORK ENSERCH CORPORATION PLANS TO REDEEM ONE POINT FIVE MILLION OF ITS ADJUSTABLE RATE CUMULATIVE PREFERRED SHARES SERIES D. ON MARCH ELEVENTH FOR FIFTY DOLLARS A SHARE PLUS ACCRUED DIVIDENDS THE DALLAS NATURAL GAS COMPANY SAID IT WILL ALSO REDEEM SINKING FUND DEBENTURES ON MARCH ELEVENTH IT WILL REDEEM ITS SEVEN POINT FIVE PERCENT DUE NINETEEN NINETY SIX WITH A PRINCIPAL AMOUNT OF SEVEN POINT FIVE MILLION DOLLARS FOR ONE HUNDRED POINT SIX OH FOUR PERCENT OF PRINCIPAL PLUS ACCRUED INTEREST ITS EIGHT POINT SEVEN FIVE PERCENT DUE TWO THOUSAND ONE WITH A PRINCIPAL AMOUNT OF TWENTY MILLION DOLLARS FOR ONE HUNDRED TWO POINT FIVE FIVE TWO PERCENT OF PRINCIPAL PLUS ACCRUED INTEREST AND ITS EIGHT POINT FIVE PERCENT DUE TWO THOUSAND TWO WITH A PRINCIPAL AMOUNT OF NINETEEN POINT TWO MILLION DOLLARS FOR ONE HUNDRED TWO POINT SEVEN FIVE PERCENT OF PRINCIPAL PLUS ACCRUED INTEREST ON MARCH FIFTEENTH ENSERCH WILL REDEEM ITS SEVEN POINT SIX FIVE PERCENT DUE NINETEEN NINETY EIGHT WITH A PRINCIPAL AMOUNT OF NINE MILLION DOLLARS THREE POINT FOUR MILLION DOLLARS AT ONE HUNDRED PERCENT OF PRINCIPAL UNDER SINKING FUND PROVISIONS AND FIVE POINT SIX MILLION DOLLARS AT ONE HUNDRED POINT NINE FIVE SEVEN PERCENT OF PRINCIPAL PLUS ACCRUED INTEREST FOR EACH IT WILL ALSO REDEEM ITS EIGHT POINT NINE FIVE PERCENT DUE NINETEEN NINETY NINE WITH A PRINCIPAL AMOUNT OF EIGHTEEN POINT ONE MILLION DOLLAR THREE POINT EIGHT MILLION DOLLARS AT ONE HUNDRED PERCENT OF PRINCIPAL UNDER SINKING FUND PROVISIONS AND FOURTEEN POINT FOUR MILLION DOLLARS AT ONE HUNDRED ONE POINT FOUR NINE TWO PERCENT OF PRINCIPAL UNDER OPTIONAL REDEMPTION PROVISIONS PLUS ACCRUED INTEREST FOR EACH IF TEXAS A AND M. UNIVERSITY PROFESSOR DON SAYLAK HAS HIS WAY SOMEDAY THE NATION'S HIGHWAYS WILL BE PAVED WITH THE STUFF OF ACID RAIN MR. SAYLAK HAS SPENT THE PAST EIGHT YEARS FINDING USES FOR THE GUNK THAT TEXAS COAL PLANTS ONCE SPEWED INTO THE ATMOSPHERE ENVIRONMENTAL LAWS HAVE FORCED UTILITIES TO CAPTURE THE SMOKE BUT NOW THEY'RE LEFT WITH THIRTEEN MILLION TONS OF BYPRODUCT ANNUALLY THAT IS STOCKPILED OR BURIED IN LANDFILLS AND SINCE TEXAS CONSUMES MORE COAL THAN ANY OTHER STATE FIFTY PERCENT MORE THAN SECOND PLACE INDIANA A GROUP OF UTILITIES INCLUDING HOUSTON LIGHTING AND POWER COMPANY WHICH IS A UNIT OF HOUSTON INDUSTRIES AND TEXAS UTILITIES COMPANY IN DALLAS HAS TURNED TO MR. SAYLAK AND OTHER RESEARCHERS AT TEXAS A AND M'S TEXAS TRANSPORTATION INSTITUTE TO FIGURE OUT WHAT TO DO WITH THE LEFTOVERS WHAT MR. SAYLAK HAS TO WORK WITH IS A HODGEPODGE OF CALCIUM SULFATE AND CALCIUM SULFITE COMPOUNDS DUBBED QUOTE GYPSITE QUOTE BY RESEARCHERS WHEN CALCIUM SULFATE OCCURS IN NATURE IT'S KNOWN AS GYPSUM IF EMITTED INTO THE ATOMOSPHERE THE SULFUR DIOXIDE IN THE COMPOUND GOES THROUGH A SERIES OF CHEMICAL REACTIONS TO CREATE A COMPONENT OF ACID RAIN USING THE GYPSITE COMBINED WITH EITHER CEMENT OR ASH ALSO PRODUCED BY THE COAL POWER PLANTS MR. SAYLAK AND HIS RESEARCHERS HAVE CREATED A SUBSTANCE THAT HE SAYS CAN REPLACE LIMESTONE AND GRAVEL IN THE BUILDING OF ROADS FOUR TEST ROADS NEAR THE UNIVERSITY HAVE SO FAR HELD UP SAYS MR. SAYLAK AND RESEARCHERS HAVE USED THE SUBSTANCE TO MAKE CONSTRUCTION MATERIALS LIKE DRYWALL AND NO BAKE BRICKS CONVENTIONAL CLAY BRICKS REQUIRE A THREE THOUSAND DEGREE FAHRENHEIT HEATING PROCESS THE DISCOVERY IS A BRIGHT PROSPECT FOR TEXAS UTILITIES WHICH WOULD RATHER SELL THE BYPRODUCT THAN STORE IT AND IF SUBSEQUENT TESTS PROVE SUCCESSFUL RESEARCHERS ESTIMATE THE GYPSITE MATERIAL WILL BE ABOUT THIRTY PERCENT CHEAPER THAN OTHER ROAD BUILDING MATERIALS OUR ONLY OPTION NOW IS TO LANDFILL THE PRODUCT SAYS CINDY WEST A HOUSTON LIGHTING AND POWER SPOKESWOMAN IF THERE'S SOME POSITIVE USE FOR THE PRODUCT THAT'S A BETTER OPTION AND IN THE LONG RUN IT'S THE ENVIRONMENTALLY BENEFICIAL THING TO DO THE TECHNOLOGY HAS YET TO UNDERGO A REAL WORLD TEST LET ALONE COMMERCIAL APPLICATION BUT RESEARCHERS ARE HOPING TO SOON USE THE SUBSTANCE ON A SECTION OF STATE HIGHWAY IN LEON COUNTY NORTH OF BRYAN COLLEGE STATION IN ADDITION A NEW STATE LAW ENCOURAGES STATE TRANSPORTATION OFFICIALS TO USE WASTE MATERIALS LIKE TIRES AND POWER PLANT BYPRODUCTS IN ROAD CONSTRUCTION MR. SAYLAK ALSO ENVISIONS LOW COST BUILDING PRODUCTS THAT COULD BE USED TO CREATE AFFORDABLE HOUSING BUT A TOUGHER HURDLE THAN STRENGTH TESTS LOOMS AHEAD ALTHOUGH MR. SAYLAK SAYS ENVIRONMENTAL TESTS AT THE UNIVERSITY SHOW THE SUBSTANCE TO BE SAFE HE SAYS IT WILL TAKE SOME CONVINCING BEFORE CONTRACTORS AND THE GENERAL PUBLIC FEEL COMFORTABLE BUILDING ROADS AND LIVING IN HOUSES BUILT WITH AN INDUSTRIAL WASTE PRODUCT CONTRACTORS ARE VERY LEERY ABOUT THE LIABILITY OF USING MATERIALS THAT ARE NONCONVENTIONAL AND THEY HAVE EVERY RIGHT TO BE SAYS MR. SAYLAK WE STILL HAVE TO GET OVER THE STIGMA GERMANY'S DEGUSSA A. G. SAID ITS PRETAX PROFIT IN THE FISCAL FIRST QUARTER ROSE TWENTY FIVE PERCENT WITH GAINS LED BY ITS CHEMICALS SECTOR THE FRANKFURT CONCERN REPORTED PRETAX PROFIT FOR THE QUARTER ENDED DECEMBER THIRTY FIRST OF SIXTY ONE MILLION MARKS THIRTY FOUR POINT SEVEN MILLION DOLLARS UP FROM FORTY NINE MILLION MARKS A YEAR EARLIER DEGUSSA EXPECTS IMPROVEMENTS TO CONTINUE IN THIS FISCAL YEAR CHAIRMAN GERT BECKER SAID THE CHAIRMAN ATTRIBUTED THE IMPROVED RESULTS TO THE RESTRUCTURING BEGUN THREE YEARS AGO WHICH HAS ENABLED THE METALS CHEMICALS AND PHARMACEUTICALS COMPANY TO BOLSTER ITS PROFITS DESPITE CONTINUING ECONOMIC DIFFICULTIES DEGUSSA SAID CHEMICALS SALES ROSE FIVE PERCENT AND PROFIT WAS QUOTE CLEARLY OVER THE PREVIOUS YEAR QUOTE THE IMPROVEMENT CAME AS A RESULT OF COST RELIEF AND REVIVAL OF DEMAND IN FOREIGN MARKETS DEGUSSA SAID IN FRANKFURT TRADING DEGUSSA SHARES ROSE THIRTEEN MARKS SEVEN DOLLARS AND THIRTY NINE CENTS TO FOUR HUNDRED SIXTY SEVEN MARKS UNITED PARCEL SERVICE OF AMERICA INCORPORATED ESTIMATED THE DAYLONG STRIKE BY THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS WILL COST THE COMPANY MORE THAN FIFTY MILLION DOLLARS IN LOST BUSINESS AND ADDED EXPENSES STILL DIGGING OUT FROM A PACKAGE PILEUP THE CLOSELY HELD PACKAGE DELIVERY CONCERN BASED IN ATLANTA SAID THE MONDAY WALKOUT SCARED AWAY SEVERAL LARGE CUSTOMERS PERHAPS PERMANENTLY A SPOKESMAN SAID THE TOTAL COULD REACH AS HIGH AS SIXTY MILLION DOLLARS THE TEAMSTERS CALLED THE STRIKE TO OPPOSE THE COMPANY'S NEW WEIGHT LIMIT WHICH WENT TO ONE HUNDRED FIFTY POUNDS FROM SEVENTY POUNDS THE UNION SAID THE HEAVIER PACKAGES ARE DANGEROUS TO WORKERS' HEALTH A U. P. S. SPOKESMAN SAID MOST OF THE DAMAGE WAS FROM LOST REVENUES U. P. S. SAID IT INCLUDED IN ITS CALCULATION THE COST OF RENTING TRUCKS CALLING MORE THAN ONE HUNDRED THOUSAND CUSTOMERS TO REASSURE THEM AND THE SALARIES OF MANAGERS WHO HAD TO DELIVER PACKAGES ON MONDAY THE FIGURE TAKES INTO ACCOUNT SAVINGS FROM UNPAID SALARIES FOR STRIKING WORKERS IN THE SETTLEMENT U. P. S. SAID IT RESERVES THE RIGHT TO HOLD THE TEAMSTERS INTERNATIONAL LIABLE FOR THE DAMAGES G. K. N. P. L. C. EXECUTED A DAWN RAID ON WESTLAND GROUP P. L. C. IN WHAT MARKET OBSERVERS SAID COULD BE THE FIRST SALVO IN THE BATTLE FOR THE BRITISH HELICOPTER MAKER G. K. N. A BRITISH AUTOMATIVE ENGINEERING AND DEFENSE COMPANY INCREASED ITS TWENTY EIGHT POINT THREE PERCENT STAKE IN WESTLAND TO FORTY SEVEN PERCENT BY BUYING THE EIGHTEEN POINT SEVEN PERCENT STAKE HELD BY UNITED TECHNOLOGIES CORPORATION HARTFORD CONNECTICUT UNITED TECHNOLOGIES SAID IT PAID ABOUT FORTY MILLION DOLLARS FOR THE WESTLAND STAKE IN NINETEEN EIGHTY SIX SELLING IT THIS WEEK FOR ONE HUNDRED ELEVEN MILLION DOLLARS G. K. N. THEN ANNOUNCED A SUBSEQUENT BID FOR ALL OF WESTLAND'S SHARES AT TWO HUNDRED NINETY PENCE A SHARE THE BID VALUES WESTLAND AT FOUR HUNDRED NINETY SIX MILLION POUNDS SEVEN HUNDRED THIRTY FIVE POINT THREE MILLION DOLLARS AT THIS PRICE G. K. N. IS BIDDING AT A DISCOUNT TO WESTLAND'S THREE HUNDRED FIVE PENCE CLOSING STOCK PRICE MONDAY G. K. N. BELIEVES ITS LARGE STAKE GIVES IT A STRONG ENOUGH HAND TO JUSTIFY THE LOW BID PRICE BUT ANALYSTS BELIEVE G. K. N. WILL BE FORCED TO PAY MORE TO WIN OVER SHAREHOLDERS WESTLAND TERSELY TERMED THE OFFER QUOTE UNWELCOME QUOTE TO HELP FUND THE ACQUISITION G. K. N. LAUNCHED A ONE FOR FIVE CONVERTIBLE LOAN RIGHTS OFFERING AT FOUR HUNDRED EIGHTY PENCE A SHARE RAISING TWO HUNDRED FORTY EIGHT MILLION POUNDS AFTER MONTHS OF CONCENTRATING MOST OF ITS LOBBYING FIRE ON POLITICIANS THE TEXAS MEDICAL ASSOCIATION IS PLANNING TO MOVE THE HEALTH REFORM BATTLE INTO THE WAITING ROOMS OF ITS THIRTY THOUSAND MEMBER PHYSICIANS ACROSS THE STATE THIS MONTH THE TMA WILL BEGIN MAILING DOCTORS PAMPHLETS DISCUSSING THE POSSIBLE IMPACT OF HEALTH CARE REFORM ON PHYSICIAN PATIENT RELATIONSHIPS ASKING PATIENTS HOW MUCH THEY VALUE THE RIGHT TO CHOOSE THEIR OWN DOCTORS AND ENCOURAGING PATIENTS TO TALK TO THEIR DOCTORS ABOUT THEIR CONCERNS THE TMA WILL URGE PHYSICIANS TO PUT THE PAMPHLETS IN THEIR LOBBIES AND WAITING ROOMS THE MEDICAL ORGANIZATION ALSO WILL MAIL OUT LISTS OF QUOTE TALKING POINTS QUOTE FOR DOCTORS TO RAISE IN CONVERSATIONS WITH PATIENTS ALONG WITH REGULAR BACKGROUND PAPERS OUTLINING NEW PROPOSALS AND SHIFTS IN THE HEALTH CARE DEBATE IT'S AN INFORMATIONAL EXCHANGE NOTHING HEAVY HANDED SAYS LOU GOODMAN THE ASSOCIATION'S DIRECTOR OF MEDICAL ECONOMICS BUT AT A TIME WHEN THE HEALTH CARE DEBATE HAS BEEN DOMINATED BY PROPOSALS TO REDUCE PHYSICIANS' FEES AND ENCOURAGE THE SPREAD OF MANAGED CARE NETWORKS THAT LIMIT PATIENT CHOICES MR. GOODMAN ACKNOWLEDGES THAT THE CAMPAIGN IS ALSO DESIGNED TO STRENGTHEN AND MAINTAIN THE TRADITIONAL DOCTOR PATIENT RELATIONSHIP CALIFORNIA'S SECURITIES COMMISSIONER WILL CONSIDER TEMPORARILY SUSPENDING PRUDENTIAL SECURITIES INCORPORATED FROM DOING BUSINESS IN THE STATE IF THE FIRM DOESN'T AGREE TO A SETTLEMENT THAT HE CONSIDERS FAIR TO INVESTORS WHO BOUGHT ITS LIMITED PARTNERSHIPS IN THE NINETEEN EIGHTIES QUOTE WHAT I'M CONCERNED ABOUT IS THAT INVESTORS BE TREATED FAIRLY IN THE ARBITRATION SETTLEMENT PROCESS QUOTE GARY MENDOZA THE COMMISSIONER SAID IN AN INTERVIEW IF HIS OFFICE ISN'T SATISFIED MR. MENDOZA SAID THE STATE WOULD GIVE SERIOUS CONSIDERATION TO AN APPROPRIATE ENFORCEMENT ACTION WHICH INCLUDES AN APPROPRIATE PERIOD OF SUSPENSION FROM DOING BUSINESS IN CALIFORNIA AMONG THE MR. MENDOZA'S MOST SIGNIFICANT REQUESTS IS THAT PRUDENTIAL OFFER TO BUY BACK PARTNERSHIP INTERESTS FROM INVESTORS WHO SHOULDN'T HAVE BEEN SOLD THEM IN THE FIRST PLACE PEOPLE FAMILIAR WITH THE MATTER SAY MR. MENDOZA DECLINED TO COMMENT ON THE SPECIFICS OF HIS TALKS WITH PRUDENTIAL WE'RE VERY CONCERNED ABOUT EVEN CONSIDERING THAT SAID JOHN MURRAY PRUDENTIAL'S DIRECTOR OF CORPORATE RISK MANAGEMENT WE'RE NOT IN THE BUSINESS OF INVESTING IN OIL AND GAS PRUDENTIAL SECURITIES IS A UNIT OF PRUDENTIAL INSURANCE COMPANY OF AMERICA THE CALIFORNIA ACTION WAS FIRST REPORTED IN THE LOS ANGELES TIMES THAT LEGENDARY TEXAS CONFIDENCE IS STARTING TO COME BACK BUT MINUS SOME OF THE SWAGGER AFTER A LONG SOJOURN IN THE DUMPS TEXANS ARE FINALLY FEELING REASONABLY GOOD ABOUT THE ECONOMY ACCORDING TO TWO SEPARATE MEASURES OF CONSUMER CONFIDENCE WITHIN THE PAST TWO MONTHS BOTH THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX AND A SURVEY BY VETERAN POLLSTER ALBERT E. SINDLINGER INDICATE TEXANS MAY HAVE AT LAST EMERGED FROM A RECESSIONARY MINDSET THAT MAY COME AS A SURPRISE TO MANY SINCE TEXAS IS GENERALLY CONSIDERED TO HAVE BEATEN THE REST OF THE NATION OUT OF THE NINETEEN NINETY TO NINETEEN NINETY ONE RECESSION AND SINCE THE STATE HAS FOR SOME TIME BEEN GENERATING SOME OF THE BEST JOB GROWTH AND HOUSINGSTARTS FIGURES ANYWHERE BUT ANALYSTS SAY TEXANS HAVE BEEN SLOW TO RETURN TO OPTIMISM MOSTLY BECAUSE THEY'RE STILL SMARTING FROM THE ECONOMIC DEBACLE OF THE MID NINETEEN EIGHTIES WHAT'S MORE OIL PRICES REMAIN SEVERELY DEPRESSED AND RECENT GROWTH WHILE IMPRESSIVE STILL DOESN'T APPROACH THE SORT OF EXPANSION THAT TEXANS HAD AT ONE TIME COME TO EXPECT FINALLY CORPORATE LAYOFFS PARTICULARLY IN THE DEFENSE INDUSTRY CONTINUE TO TAKE THEIR TOLL TRACKING SUCH MOOD SWINGS IS SOMETIMES MORE ART THAN SCIENCE BUT THE NEW YORK BASED CONFERENCE BOARD A NONPROFIT RESEARCH ORGANIZATION FINANCED BY BUSINESS DONATIONS HAS BEEN AT IT LONG ENOUGH TO DEVELOP A SIZABLE FOLLOWING AMONG ECONOMISTS AND POLICY MAKERS THE METHODOLOGY IS SIMPLE EACH MONTH INTERVIEWERS ASK FIVE THOUSAND CONSUMERS FIVE BASIC QUESTIONS ARE BUSINESS CONDITIONS GOOD BAD OR NORMAL AT PRESENT ARE JOBS PLENTIFUL NOT SO PLENTIFUL OR HARD TO GET IN THE NEXT SIX MONTHS HOW WILL BUSINESS CONDITIONS AND JOBS FARE WILL YOUR FAMILY'S INCOME BE HIGHER LOWER OR THE SAME IN SIX MONTHS THE RESULTS COMPILED IN INDEX FORM HAVE OFTEN SHOWN SIGNIFICANT DIFFERENCES BETWEEN THE U. S. AS A WHOLE AND THE TEXAS AREA WHICH ALSO INCLUDES LOUISIANA OKLAHOMA AND ARKANSAS IN THE EARLY NINETEEN EIGHTIES WHEN THE REST OF THE U. S. WAS CAUGHT IN THE GRIP OF RECESSION TEXANS WERE RIDING A WAVE OF OIL INDUCED OPTIMISM IN DECEMBER NINETEEN EIGHTY ONE FOR INSTANCE THE TEXAS AREA READING STOOD AT ONE HUNDRED THIRTEEN POINT THREE COMPARED WITH SIXTY SIX POINT SIX FOR THE NATION AS A WHOLE BY DECEMBER OF NINETEEN EIGHTY SIX THE OIL CRASH REVERSED THE SITUATION PUTTING THE U. S. AT NINETY THREE POINT TWO AND TEXAS AT FIFTY SIX POINT TWO THE CONFERENCE BOARD TYPICALLY CONSIDERS ANY NUMBER BETWEEN EIGHTY AND ONE HUNDRED TO BE A SIGN OF A HEALTHY BUT NOT SPECTACULAR ECONOMY UNDER EIGHTY USUALLY SIGNIFIES A SLUGGISH OR RECESSIONARY ECONOMY WHILE OVER ONE HUNDRED MEANS A BOOM SINCE NINETEEN NINETY ONE CONSUMERS IN THE U. S. AND IN TEXAS HAVE BEEN PRETTY MUCH EQUALLY MOROSE SHOWING AVERAGE READINGS UNDER SEVENTY BUT THE PSYCHES IN BOTH AREAS APPEAR TO BE ON THE MEND AT LONG LAST IN JANUARY THE U. S. READING HIT EIGHTY THREE POINT TWO UP THREE POINT FOUR POINTS FROM DECEMBER WHILE THE TEXAS AREA JUMPED ELEVEN POINT FOUR POINTS TO EIGHTY FOUR POINT EIGHT ALTHOUGH ANALYSTS CAUTION AGAINST PLACING TOO MUCH EMPHASIS ON ONE MONTH'S FIGURES THE NUMBERS DO INDICATE THAT THE INCREASE IN TEXANS' CONFIDENCE MAY HAVE STAYING POWER A YEAR AGO CONSUMERS WERE OVER THE TOP OPTIMISTIC ABOUT THE FUTURE BUT CAUTIOUS ABOUT THEIR CURRENT CIRCUMSTANCES NOW RESPONDENTS SAY THEIR CURRENT SITUATION LOOKS PRETTY ROSY AS DO THEIR EXPECTATIONS QUOTE I THINK THE UPTURN IS MORE SUSTAINABLE THAN A TEMPORARY SURGE A YEAR EARLIER QUOTE SAYS JASON BRAM A CONFERENCE BOARD ECONOMIST IT'S BASED MORE ON FUNDAMENTAL ISSUES THINGS LIKE THE JOB MARKET PICKING UP MORE EVIDENCE OF IMPROVING CONSUMER CONFIDENCE COMES FROM MR. SINDLINGER AN EIGHTY SEVEN YEAR OLD CONSULTANT WHOSE WALLINGFORD PENNSYLVANIA FIRM HAS BEEN TAKING AMERICA'S PULSE REGULARLY SINCE NINETEEN FORTY EIGHT MR. SINDLINGER'S APPROACH ALSO INVOLVES TELEPHONE INTERVIEWS TO MEASURE WHAT HE CALLS HOUSEHOLD LIQUIDITY FOR A RESPONDENT TO HAVE POSITIVE HOUSEHOLD LIQUIDITY HE OR SHE MUST BE ABLE TO SAY THAT TOTAL ANNUAL HOUSEHOLD INCOME IS AT LEAST EQUAL TO WHAT IT WAS SIX MONTHS AGO THAT TOTAL HOUSEHOLD INCOME WILL BE THE SAME OR UP FROM NOW IN THE NEXT SIX MONTHS THAT IN THE NEXT SIX MONTHS THERE WILL BE AT LEAST THE SAME NUMBER OF JOBS IN THE AREA AND THAT BUSINESS CONDITIONS IN THE NEXT SIX MONTHS WILL BE THE SAME OR BETTER BY HIS DEFINITION AN AREA IN WHICH FEWER THAN TWENTY SIX PERCENT OF HOUSEHOLD HEADS REPORT POSITIVE LIQUIDITY IS IN A DEPRESSION BETWEEN TWENTY SIX PERCENT AND TWENTY NINE POINT NINE PERCENT INDICATES A BORDERLINE DEPRESSION THIRTY PERCENT TO FORTY NINE POINT NINE PERCENT SIGNALS A RECESSION AND FIFTY PERCENT OR ABOVE IS A SIGN OF A HEALTHY ECONOMY BEFORE NINETEEN EIGHTY TWO TEXAS TENDED TO FAR SURPASS THE REST OF THE COUNTRY TURNING IN NUMBERS IN THE SIXTY PERCENT AND SEVENTY PERCENT RANGE THROUGH THE DARK YEARS OF THE EIGHTIES TEXAS DIPPED INTO THE THIRTY PERCENT RANGE YOU WERE DOWN PRETTY LOW FOR TEXAS MR. SINDLINGER SAYS I MEAN TEXAS HAS NEVER EXPERIENCED ANYTHING BAD SINCE THE ALAMO IN THE NINETIES THOUGH THE TREND HAS BEEN UP AND TEXAS HAS GENERALLY RANGED ABOUT TEN POINTS ABOVE THE U. S. AVERAGE IN DECEMBER FOR THE FIRST TIME SINCE JANUARY OF NINETEEN NINETY TEXAS FINALLY CRACKED THE FIFTY PERCENT MARK BY JANUARY POSITIVE HOUSEHOLD LIQUIDITY HAD REACHED FIFTY THREE POINT OH PERCENT BY CONTRAST THE U. S. AVERAGE WAS STILL THIRTY SEVEN POINT NINE PERCENT FIRMLY IN RECESSION TERRITORY A CONCLUSION DISPUTED BY MOST ECONOMISTS ONE STATE CALIFORNIA WAS IN A DEPRESSION AND EIGHT OTHER THAN TEXAS WERE CONSIDERED HEALTHY WYOMING IDAHO NEVADA MONTANA COLORADO UTAH NEW MEXICO AND ARIZONA IN THE BLEAK CONDITIONS OF THE TEXAS BORDER COLONIAS AN EIGHT HUNDRED FIFTY MILLION DOLLAR PENSION FUND SEES PROMISE AND PROFIT THIS MONTH THE WASHINGTON BASED A. F. L. C. I. O. HOUSING INVESTMENT TRUST WHICH MANAGES INVESTMENTS FOR THREE HUNDRED FIFTY MEMBER PENSION FUNDS IS EXPECTED TO SELECT THREE TEST SITES ALONG THE TEXAS BORDER WHERE IT PLANS TO BUILD THREE HUNDRED UNITS OF AFFORDABLE HOUSING THE EFFORT IS THE FIRST STEP IN A PLANNED ONE HUNDRED FIFTY MILLION DOLLAR FEDERAL STATE AND PRIVATE INITIATIVE AIMED AT CLEANING UP THE ENCLAVES OF SUBSTANDARD HOUSING ALONG THE BORDER ALSO UNDER THE INITIATIVE TEXAS WOULD BECOME ONE OF THE FIRST STATES TO TEST A NEW FEDERAL PROGRAM AIMED AT ENCOURAGING PENSION FUNDS TO INVEST IN LOW INCOME HOUSING BUT OF EVEN MORE IMPORTANCE TO BORDER COMMUNITIES THE INITIATIVE REPRESENTS A CONCERTED EFFORT TO TACKLE THE PROBLEMS OF THE ESTIMATED THREE HUNDRED THOUSAND COLONIA RESIDENTS MOSTLY IMPOVERISHED IMMIGRANTS FROM MEXICO AFTER YEARS OF JUST TALKING ABOUT THEM QUOTE WE THINK IT CAN DEMONSTRATE TO PENSION FUNDS THAT YOU CAN DO THIS KIND OF LENDING IN A SAFE SECURE PRUDENT WAY AND BE CONTRIBUTING TOWARD THE CREATION OF VERY DESPERATELY NEEDED AFFORDABLE HOUSING QUOTE SAYS JIM CAMPBELL WHO OVERSEES AFFORDABLE HOUSING INVESTMENTS FOR THE TRUST THE A. F. L. C. I. O. TRUST IS EXPECTED TO CONTRIBUTE FIFTY MILLION DOLLARS TOWARD LOW INCOME HOUSING EFFORTS IN THE COLONIAS IN ADDITION THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS HAS PROMISED FIFTEEN MILLION DOLLARS THE FIRST SEVEN MILLION DOLLARS OF WHICH WILL BE AVAILABLE IN MARCH AND THE FEDERAL NATIONAL MORTAGE ASSOCIATION HAS PLEDGED TWENTY MILLION DOLLARS IN LOAN PURCHASES TEXAS HOUSING OFFICIALS ALSO HOPE TO COURT AN ADDITIONAL THIRTY FIVE MILLION DOLLARS IN LOANS FROM PRIVATE LENDERS BUT TEXAS HOUSING OFFICIALS GOT BAD NEWS THIS WEEK WHEN THEY LEARNED THE CLINTON ADMINISTRATION'S BUDGET INCLUDED ONE HUNDRED MILLION DOLLARS FOR COLONIAS ASSISTANCE IN FOUR STATES ALTHOUGH THAT IS A BOOST TO EFFORTS TO INVEST IN THE COLONIAS TEXAS HOUSING OFFICIALS WERE EXPECTING TWO HUNDRED MILLION DOLLARS AS A RESULT A REQUEST FOR SIXTY MILLION DOLLARS IN HOUSING AND URBAN DEVELOPMENT FUNDS IS EXPECTED TO BE SCALED BACK TO ABOUT THIRTY MILLION DOLLARS THIS MONTH THE A. F. L. C. I. O. TRUST WILL SELECT THREE SITES IN THE EL PASO LAREDO AND BROWNSVILLE SLASH EDINBERG AREAS STATE HOUSING OFFICIALS SAY THEY HOPE EVENTUALLY TO INVEST IN OR AROUND TWENTY FOUR COLONIA SITES USING THE FIRST THREE PROJECTS AS MODELS ALTHOUGH INVESTMENT IN LOW INCOME HOUSING AND DISTRESSED AREAS WOULD SEEM HIGH RISK FOR A PENSION FUND OFFICIALS SAY PUBLIC SUBSIDY AND GOVERNMENT GUARANTEES AVAILABLE FOR AFFORDABLE HOUSING PROJECTS OFTEN MAKE THEM A BETTER INVESTMENT THAN TRADITIONAL LOANS ONE POSSIBLE PLAN FOR A ONE HUNDRED UNIT COLONIA DEVELOPMENT USES STATE FUNDS TO PURCHASE LAND AND INFRASTRUCTURE HUD WOULD SUBSIDIZE ABOUT FIFTY PERCENT OF THE HOME COST A PRIVATE LENDER WOULD MAKE A BLANKET LOAN FOR THE REMAINING MORTGAGES ABOUT TWENTY THOUSAND DOLLARS OR THIRTY THOUSAND DOLLARS A UNIT THAT AMOUNT WOULD BE GUARANTEED AND SECURITIZED BY FANNIE MAE AND THE A. F. L. C. I. O. TRUST WOULD PURCHASE THE SECURITIES IN A PRIVATE PLACEMENT THEN A LOW INCOME HOME BUYER WOULD REPAY HIS SHARE OF THE BLANKET LOAN AT A RATE OF ABOUT ONE HUNDRED FIFTY DOLLARS TO TWO HUNDRED DOLLARS A MONTH FOR TEN OR FIFTEEN YEARS WHAT'S UNIQUE ABOUT THIS PLAN IS THAT IT USES RENTAL ASSISTANCE FUNDS TO ULTIMATELY ALLOW THE BENEFICIARY TO OWN THE HOME IN ADDITION WITHOUT THE A. F. L. C. I. O. AS A GUARANTEED BUYER OF THE MORTAGE BACKED SECURITY IT'S UNLIKELY THE PRIVATE LENDER OR FANNIE MAE WOULD BACK THE DEAL UNDER THAT SCENARIO THE TRUST COULD EARN A SEVEN PERCENT TO EIGHT PERCENT RATE OF RETURN DEPENDING ON MARKET RATES THE TRUST HAS A ONE YEAR AND THREE YEAR RATE OF RETURN OF TEN POINT FOUR PERCENT AND ELEVEN POINT TWO FOUR PERCENT RESPECTIVELY STATE AND FEDERAL HOUSING OFFICIALS ARE HOPING THE COLONIAS PROGRAM WILL CONVINCE MORE PRIVATE SECTOR LENDERS TO GET INVOLVED IN AFFORDABLE HOUSING WE'RE TRYING TO RE EDUCATE THE LENDING COMMUNITY SAYS HENRY FLORES EXECUTIVE DIRECTOR OF THE STATE HOUSING AGENCY BUT EVEN WITH MASSIVE PRIVATE INVESTMENT STATE AND FEDERAL HOUSING OFFICIALS CONCEDE IT WILL BE DIFFICULT TO PUT A DENT IN THE PROBLEM THE COLONIAS HAVE SPROUTED UP ALONG THE BORDER AS DEVELOPERS HAVE SOLD PLOTS OF LAND TO LOW INCOME RESIDENTS FOR AS LITTLE AS NINETY NINE DOLLARS DOWN MOST OF THESE SUBDIVISIONS HAVE NO WATER OR SEWAGE SERVICE RESIDENTS RESORT TO USING OUTHOUSES ILLEGAL WELLS AND SEPTIC TANKS WHICH IN MOST CASES ARE SET SO CLOSE TOGETHER THAT WHAT AVAILABLE WATER THERE IS BECOMES CONTAMINATED COLONIAS ARE DOTTED WITH HOUSES IN VARIOUS STAGES OF CONSTRUCTION SOME LOTS HAVE ONLY POURED FOUNDATIONS OTHERS HAVE HOUSES WITH ONLY TWO OR THREE WALLS WHILE THE FAMILY SLEEPS IN A NEARBY SHACK OR TRAILER RESIDENTS HERE TEND TO BUILD THEIR HOMES FROM PAYCHECK TO PAYCHECK THE FINANCIAL STRUCTURE OF THE COLONIAS MAKES IT DIFFICULT TO USE PUBLIC DOLLARS TO SOLVE THE PROBLEM MOST OF THE RESIDENTS WHO THINK THEY OWN THEIR LAND REALLY HAVE ONLY A CONTRACT FOR DEED A HIGH INTEREST RENT TO OWN AGREEMENT WITH HARSH LATE PAYMENT TERMS HOUSING OFFICIALS SAY AFTER ONE OR TWO LATE PAYMENTS A RESIDENT CAN LOSE THE LAND ALONG WITH ANY PROPERTY IMPROVEMENTS BECAUSE MOST RESIDENTS LACK CLEAR TITLE TO THE PROPERTY MOST PUBLIC AND NONPROFIT HOUSING GROUPS DON'T WANT TO INVEST IN THE COLONIAS FOR FEAR ANY IMPROVEMENTS WILL REVERT TO THE ORIGINAL OWNER SOME OF THE A. F. L. C. I. O. TRUST AND OTHER HOUSING FUNDS WILL BE SPENT ON DEVELOPING NEW HOMES ADJACENT TO AN EXISTING COLONIA TO AT LEAST RELIEVE OVERCROWDING HOUSING OFFICIALS SAY THEY WILL ALSO CONSIDER USING THE FUNDS TO HELP RESIDENTS WIN CLEAR TITLE TO THEIR PROPERTY TO BRING IN WATER AND SEWER INFRASTRUCTURE AND TO REBUILD SOME OF THE EXISTING COLONIA HOMES MR. FLORES SAYS HE IS WORKING ON RECOMMENDATIONS FOR STATE LEGISLATORS NEXT YEAR TO DEAL WITH TITLE ISSUES AFFECTING THE COLONIAS ADDITIONAL FUNDS FOR THE COLONIAS ALSO ARE EXPECTED TO BECOME AVAILABLE FROM THE FARMERS HOME ADMINISTRATION LATER THIS YEAR AND FANNIE MAE IS LOOKING FOR OTHER WAYS THE MORTGAGE FINANCING AGENCY CAN AID THE COLONIAS EFFORT FORD MOTOR COMPANY SAID IT WILL STOP SELLING ITS MERCURY CAPRI CONVERTIBLE IN THE U. S. THIS FALL BECAUSE OF DECLINING SALES FORD OF AUSTRALIA WHICH MAKES THE MERCURY CAPRI AT ITS BROADMEADOWS ASSEMBLY PLANT NEAR MELBOURNE WILL CEASE CAPRI PRODUCTION IN MAY THE VEHICLES WILL BE AVAILABLE THROUGH THE NINETEEN NINETY FOUR MODEL YEAR WHICH ENDS IN SEPTEMBER QUOTE SINCE THE INTRODUCTION OF THE CAPRI IN NINETEEN NINETY U. S. SALES IN THE CONVERTIBLE SEGMENT WHERE MERCURY CAPRI COMPETES HAVE DECLINED RESULTING IN THIS DECISION QUOTE SAID KEITH MAGEE VICE PRESIDENT AND GENERAL MANAGER OF THE LINCOLN MERCURY DIVISION FORD SOLD NINE THOUSAND SEVEN HUNDRED TWENTY THREE CAPRIS IN NINETEEN NINETY THREE DOWN TWENTY TWO POINT FIVE PERCENT FROM THE TWELVE THOUSAND FIVE HUNDRED FIFTY SEVEN SOLD IN NINETEEN NINETY TWO LINCOLN MERCURY SAID ITS DEALERS WILL CONTINUE TO SERVICE CAPRIS IN THE U. S. THE FEDERAL COMMUNICATIONS COMMISSION IS EXTENDING THE FREEZE ON CABLE T. V. REVENUE TO MAY FIFTEENTH WHILE IT CONDUCTS A REVIEW OF PRICES CHARGED FOR SERVICE A REVENUE FREEZE IMPOSED LAST YEAR DURING IMPLEMENTATION OF NEW RULES WAS DUE TO EXPIRE TUESDAY BUT AN OUTCRY LAST FALL OVER CHANGES IN HOW CABLE COMPANIES BILL CUSTOMERS WHICH RESULTED IN ALLEGATIONS THAT MANY PEOPLE RECEIVED HIGHER BILLS LED THE AGENCY TO RECONSIDER ITS RATE RULES THE AGENCY IS EXPECTED TO REVIEW ITS RULES THIS MONTH AND OFFICIALS SAID EXTENDING THE FREEZE WOULD MAKE IT EASIER TO IMPLEMENT ANY NEW REGULATIONS MEANWHILE COMMUNITIES ARE IN THE PROCESS OF CERTIFYING LOCAL CABLE COMPANIES AS MONOPOLIES A PROCESS THAT PERMITS THEM TO REGULATE BASIC CABLE SERVICE F. C. C. OFFICIALS SAID THE FREEZE ALSO EXTENDS THE TIME FOR COMMUNITIES TO ACT ORANGE AND ROCKLAND UTILITIES INCORPORATED FILED SUIT AGAINST JAMES F. SMITH ITS FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN STATE SUPREME COURT IN ROCKLAND COUNTY N. Y. CLAIMING HE MISAPPROPRIATED FUNDS AND FAILED TO PROPERLY SUPERVISE CORPORATE AFFAIRS BASED IN PEARL RIVER N. Y. THE UTILITY WHICH DISMISSED MR. SMITH ON OCTOBER SEVENTH FOR CAUSE IS SEEKING AT LEAST FIVE MILLION DOLLARS IN DAMAGES FROM THE CIVIL ACTION MR. SMITH IN TUXEDO PARK N. Y. COULD NOT BE REACHED FOR COMMENT MR. SMITH'S DISMISSAL STEMMED FROM QUESTIONABLE FINANCIAL AND POLITICAL DEALINGS AT THE UTILITY STATE REGULATORS WITH THE COOPERATION OF THE UTILITY ARE CONTINUING A PROBE DISCOUNT FARES DROVE GREYHOUND LINES INCORPORATED TO A DEEPER THAN EXPECTED LOSS IN THE FOURTH QUARTER OF NINETEEN NINETY THREE AS THE BUS CARRIER TRIED TO REVERSE A DECLINE IN PASSENGER TRAFFIC THE DALLAS COMPANY REPORTED A NET LOSS OF SIX POINT FOUR MILLION DOLLARS OR FORTY FOUR CENTS A SHARE COMPARED WITH EARNINGS OF FIVE POINT THREE MILLION DOLLARS OR FIFTY THREE CENTS A SHARE A YEAR EARLIER REVENUE FELL SEVEN POINT FIVE PERCENT TO ONE HUNDRED FIFTY FIVE POINT ONE MILLION DOLLARS FROM ONE HUNDRED SIXTY SEVEN POINT SEVEN MILLION DOLLARS FOR THE YEAR GREYHOUND POSTED PROFIT OF JUST SEVEN POINT FIVE MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE IN NINETEEN NINETY TWO GREYHOUND EARNED TEN POINT NINE MILLION DOLLARS OR ONE DOLLAR AND TEN CENTS A SHARE REVENUE DECLINED NEARLY FOUR PERCENT TO SIX HUNDRED SIXTY SIX POINT FIVE MILLION DOLLARS FROM SIX HUNDRED NINETY THREE MILLION DOLLARS QUOTE THE NINETEEN NINETY THREE RESULTS WERE VERY DISAPPOINTING QUOTE SAID FRANK J. SCHMIEDER CHIEF EXECUTIVE AND PRESIDENT HE ATTRIBUTED THE DISAPPOINTMENT TO SLUGGISHNESS IN THE TRAVEL INDUSTRY BAD WINTER WEATHER AND PROBLEMS IN THE THIRD QUARTER WITH A NEW RESERVATION SYSTEM AND TELEPHONE SERVICE KANSAS CITY SOUTHERN INDUSTRIES INCORPORATED SHARES CLIMBED SHARPLY AFTER THE COMPANY SAID IT IS STUDYING QUOTE STRATEGIC OPTIONS QUOTE THAT MIGHT INCREASE STOCKHOLDER VALUE THE KANSAS CITY MISSOURI HOLDING COMPANY SAID ITS BOARD HAS RETAINED OUTSIDE CONSULTANTS AND AN INVESTMENT BANKER TO HELP IT ANALYZE A WIDE RANGE OF ALTERNATIVES RANGING FROM OPERATIONAL IMPROVEMENTS TO ASSET REDEPLOYMENTS THE COMPANY DIDN'T DISCLOSE THE IDENTITY OF THE CONSULTANTS WHO AN OFFICIAL SAID HAVE BEEN INSTRUCTED THAT NOTHING IS SACRED TRADING IN KANSAS CITY SOUTHERN SHARES WAS HALTED BRIEFLY IN MIDSESSION PENDING THE COMPANY'S DISCLOSURE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY'S SHARES CLOSED AT FORTY EIGHT POINT EIGHT SEVEN FIVE DOLLARS UP THREE DOLLARS AND FIFTY CENTS OR SEVEN POINT SEVEN PERCENT THE SUPREME COURT OF TEXAS PUT NEW RESTRICTIONS ON PUNITIVE DAMAGE AWARDS IN A DECISION THAT SEEMS TO REFLECT THE COURT'S GROWING EFFORT TO MODERATE THE STATE'S REPUTATION AS A PLAINTIFFS' HAVEN THE DECISION BY TEXAS'S HIGHEST COURT MAKES IT MUCH MORE DIFFICULT FOR POLICYHOLDERS TO WIN PUNITIVE DAMAGES AGAINST INSURERS FOR FAILING TO PAY CLAIMS ON A TIMELY BASIS THE DECISION ALSO ADDS A NUMBER OF PROCEDURAL SAFEGUARDS FOR DEFENDANTS THAT AFFECT ALL CASES IN WHICH PUNITIVE DAMAGES ARE AN ISSUE QUOTE IT IS A SEA CHANGE FOR THE COURT QUOTE SAID CHARLES I. HADDEN A WASHINGTON LAWYER FOR TRANSPORTATION INSURANCE COMPANY A DALLAS SUBSIDIARY OF C. N. A. INSURANCE COMPANIES WHICH WAS THE DEFENDANT IN THE CASE MR. HADDEN OF ROSS DIXON AND MASBACK PREDICTED THE DECISION BOTH WOULD MAKE IT HARDER FOR PLAINTIFFS TO WIN PUNITIVE DAMAGES AND WOULD REVERSE A TENDENCY OF TEXAS COURTS TO UPHOLD SUCH AWARDS ON APPEAL THE CASE INVOLVED A WORKER IN A BUILDING PRODUCTS STORE IN EL PASO WHO WAS INJURED IN NINETEEN EIGHTY SIX WHEN A STACK OF COUNTER TOPS FELL ON HIM BREAKING HIS PELVIS THE MAN OBTAINED A SETTLEMENT FROM TRANSPORTATION INSURANCE HIS WORKERS' COMPENSATION INSURER BUT THEN SUED THE INSURER FOR BAD FAITH CLAIMING IT WAS GROSSLY NEGLIGENT IN TAKING MORE THAN TWO YEARS TO PAY HIS MEDICAL BILLS A JURY AWARDED THE MAN ONE THOUSAND DOLLARS TO COMPENSATE FOR MONETARY LOSSES ONE HUNDRED THOUSAND DOLLARS FOR MENTAL ANGUISH AND ONE MILLION DOLLARS IN PUNITIVE DAMAGES THE VERDICT WAS UPHELD ON APPEAL BUT THE STATE SUPREME COURT ORDERED A NEW TRIAL SAYING THE STANDARD FOR GROSS NEGLIGENCE THAT THE LOWER COURTS HAD USED IN ORDER TO AWARD PUNITIVE DAMAGES WAS TOO FAVORABLE TO PLAINTIFFS SINCE NINETEEN EIGHTY ONE PLAINTIFFS IN TEXAS HAVE BEEN ABLE TO WIN SUCH CASES ESSENTIALLY BY SHOWING SOME CARELESSNESS ON BEHALF OF THE DEFENDANTS IN REFUSING TO PAY REGARDLESS OF THE EXTENT OF INJURY IN ITS DECISION HOWEVER THE COURT TOUGHENED THE REQUIREMENT HOLDING THAT PLAINTIFFS MUST SHOW THAT THE DEFENDANTS HAD A CONSCIOUS INDIFFERENCE TOWARD PAYMENT AND KNEW THAT THEIR ACTIONS WOULD RESULT IN EXTRAORDINARY HARM SUCH AS DEATH GRIEVOUS PHYSICAL INJURY OR A GENUINE LIKELIHOOD OF FINANCIAL CATASTROPHE ACCORDING TO THE OPINION KIT BRAMBLETT AN EL PASO LAWYER WHO REPRESENTED THE PLAINTIFF IN THE CASE SAID THE DECISION EFFECTIVELY KILLS THE POSSIBILITY OF PUNITIVE DAMAGE AWARDS IN INSURANCE BAD FAITH CASES IT IS AS IF TO BORROW A PHRASE FROM WILL ROGERS THIS MAJORITY NEVER MET AN INSURANCE COMPANY IT DIDN'T LIKE ONE OF THE TEXAS JUSTICES LLOYD DOGGETT ADDED IN A DISSENTING OPINION TO THE COURT'S SEVEN TO TWO RULING THE PROCEDURAL SAFEGUARDS THAT THE COURT ORDERED INCLUDE A REQUIREMENT THAT LOWER COURTS HOLD A SEPARATE TRIAL ON THE QUESTION OF PUNITIVE DAMAGES ONCE THE ISSUE OF LIABILITY HAS BEEN DECIDED AND THAT APPELLATE COURTS LAY OUT THEIR REASONS FOR UPHOLDING SUCH AWARDS ON APPEAL THE COURT SAID THE CHANGES WERE AN ATTEMPT TO BRING TEXAS LAW IN CONFORMITY WITH RECENT DECISIONS OF THE U. S. SUPREME COURT ON PUNITIVE DAMAGES THE DECISION IS THE LATEST PRONOUNCEMENT BY THE TEXAS COURT IN RECENT MONTHS TO LIMIT PUNITIVE DAMAGE CLAIMS AND OTHER KINDS OF SUITS THE COURT HAS HELD FOR INSTANCE THAT A WAL MART STORE COULD NOT BE HELD LIABLE FOR PUNITIVE DAMAGES IN THE CASE OF A WOMAN WHO HAD FALLEN AND BROKEN HER HIP ON THE SIDEWALK OUTSIDE THE STORE THE COURT ALSO RECENTLY HELD THAT UNLIKE OTHER STATES TEXAS DOESN'T RECOGNIZE THE TORT OF NEGLIGENT INFLICTION OF EMOTIONAL DISTRESS IN A CASE INVOLVING A WOMAN WHO SUED HER FORMER LOVER FOR VIDEOTAPING THEIR SEXUAL ENCOUNTERS TRADE CENTER UPDATE PROSECUTORS IN THE WORLD TRADE CENTER BOMBING TRIAL TOLD JUDGE KEVIN T. DUFFY THAT THEY HAD CONCLUDED THE PRESENTATION OF THEIR CASE AFTER FOUR MONTHS OF TESTIMONY BY SOME TWO HUNDRED SEVEN WITNESSES THE SIXTEEN WEEK OLD TRIAL IN FEDERAL COURT IN NEW YORK WILL NOW SHIFT ITS FOCUS TO THE FOUR DEFENDANTS THEY EACH ARE EXPECTED TO PRESENT VERY BRIEF DEFENSES POSSIBLY ENABLING JUDGE DUFFY TO SEND THE CASE TO THE JURY AS EARLY AS THE END OF NEXT WEEK THE DEFENDANTS ARE CHARGED WITH CONSPIRACY IN THE BLAST THAT DESTROYED PORTIONS OF THE SKYSCRAPER AND KILLED SIX PEOPLE LAST FEBRUARY I. T. T. CORPORATION HAS EMERGED AS THE FAVORED CANDIDATE IN THE BIDDING WAR FOR CIGA COMPANY AN ITALIAN LUXURY HOTEL CHAIN WITH THIRTY FIVE HOTELS AND MORE THAN FIVE THOUSAND FIVE HUNDRED ROOMS THROUGHOUT EUROPE ACCORDING TO PEOPLE CLOSE TO THE BIDDING MEDIOBANCA A MILAN MERCHANT BANK ACTING AS AN AGENT FOR CIGA'S CREDITORS RECOMMENDED THAT BANKS ACCEPT I. T. T.'S APPROXIMATELY NINE HUNDRED BILLION LIRE FIVE HUNDRED THIRTY POINT FIVE MILLION DOLLARS CASH BID A BID FROM BRITISH HOTEL GROUP FORTE P. L. C. WHICH HAD THE BACKING OF U. S. FINANCIER GEORGE SOROS'S QUANTUM FUND APPARENTLY CAME IN AT ABOUT EIGHT HUNDRED BILLION LIRE HOST MARRIOTT CORPORATION WASHINGTON D. C. WAS AMONG THE OTHER BIDDERS I. T. T. DECLINED TO COMMENT ON THE NEWS BUT WALL STREET ANALYSTS SAID THE MOVE WOULD BETTER POSITION THE CONGLOMERATE TO SPIN OFF ITS I. T. T. SHERATON HOTEL CHAIN IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY I. T. T. SHARES CLOSED AT NINETY NINE POINT SIX TWO FIVE DOLLARS UP TWO DOLLARS FORTE SAID THE SHERATON BID WAS QUOTE CONSIDERABLY HIGHER QUOTE THAN ITS OWN AND THAT THE GROUP DIDN'T PLAN TO RAISE ITS BID BUT PEOPLE CLOSE TO THE TALKS SAID THEY DIDN'T RULE OUT A COUNTEROFFER FROM THE BRITISH GROUP SHERATON'S CASH OFFER WOULD PERMIT CIGA TO RECOUP MORE THAN SEVENTY PERCENT OF ITS DEBTS ACCORDING TO ITALIAN NEWS REPORTS CIGA WENT INTO DEFAULT ON ITS LOANS LAST YEAR AND ITS SHARES WERE SUSPENDED FROM THE MILAN STOCK EXCHANGE CIGA WHICH WAS DEVELOPED BY THE AGA KHAN BEFORE CREDITOR BANKS TOOK CHARGE LAST YEAR IS CONSIDERED ONE OF ITALY'S PREMIER LUXURY HOTEL CHAINS AND INCLUDES THE PRESTIGIOUS DANIELI IN VENICE THE GRAND HOTEL IN ROME AND THE PALACE IN MADRID INDUSTRY OBSERVERS SAID THE PURCHASE WOULD SUBSTANTIALLY BOOST SHERATON'S VISIBILITY OVERSEAS BUT NOTED THAT HIGH END CHAINS ARE EXPENSIVE TO OPERATE AND THE EUROPEAN HOTEL MARKET AS A WHOLE CONTINUES TO SHOW SOME WEAKNESS CHRISTINE M. VUJOVICH VICE PRESIDENT PRODUCT PLANNING AND ENVIRONMENTAL MANAGEMENT OF CUMMINS ENGINES COMPANY WAS NAMED A DIRECTOR OF THIS MAKER OF FURNITURE PIANOS AND PROCESSED WOOD PRODUCTS SHE SUCCEEDS PATRICIA H. SNYDER WHO RETIRED STANDARD AND POOR'S CORPORATION SAID FINANCIAL REGULATORS TOOK FORTY SEVEN ACTIONS AGAINST U. S. INSURERS IN NINETEEN NINETY THREE DOWN FROM SIXTY EIGHT A YEAR EARLIER S. AND P'S INSURANCE RATING SERVICE SAID THE REDUCTION REFLECTS REDUCED BUT STILL HIGH PROPERTY CATASTROPHE LOSSES BETTER QUALITY LIFE INSURER INVESTMENT PORTFOLIOS AND REASONABLY STRONG AFTER TAX EARNINGS THE S. AND P. TALLY SAID REGULATORS SHUT DOWN SEVENTEEN LIFE SLASH HEALTH INSURERS WITH ABOUT ONE POINT THREE BILLION DOLLARS IN LIABILITIES LAST YEAR THE LOWEST TOTAL SINCE NINETEEN EIGHTY SIX WHEN SIXTEEN INSURERS FAILED INSURERS WERE AIDED BY A RISING STOCK MARKET SUBSTANTIAL FUNDS PAID BY OWNERS GENERALLY FAVORABLE HEALTH INSURANCE MARKET CONDITIONS AND RENEWED CONSUMER INTEREST IN TAX DEFERRED LIFE AND ANNUITY PRODUCTS IN ADDITION MANY COMPANIES RESTRUCTURED THEIR PORTFOLIOS PRIMARILY DIVESTING JUNK BONDS LOOKING FORWARD STEVEN DREYER DIRECTOR OF INSURANCE RATINGS SERVICES SAID HEALTH INSURANCE PROFITS WILL PROBABLY BE SQUEEZED BY CYCLICAL AND POLITICAL PRESSURES AND ANY SIGNIFICANT RISE IN INTEREST RATES WOULD HAVE AN ADVERSE IMPACT THIRTY PROPERTY SLASH CASUALTY INSURERS WITH LIABILITIES OF MORE THAN THREE HUNDRED MILLION DOLLARS FAILED IN NINETEEN NINETY THREE THE FEWEST NUMBER SINCE NINETEEN EIGHTY SEVEN WHEN NINETEEN WERE TAKEN OVER BY REGULATORS DESPITE SUCH CATASTROPHIC CLAIMS AS THE WORLD TRADE CENTER BOMBING THE MARCH NORTH EASTERN STORM CALIFORNIA FIRES AND MIDWEST FLOODS QUOTE THERE WAS NO RASH OF INSOLVENCIES AS THERE WAS FOLLOWING HURRICANE ANDREW IN NINETEEN NINETY TWO QUOTE THE ANALYSIS SAID THE CAPITAL POSITION OF THE PROPERTY SLASH CASUALTY INDUSTRY IMPROVED IN NINETEEN NINETY THREE THANKS TO LOWER UNDERWRITING LOSSES AND CONTINUED HIGH LEVELS OF REALIZED AND UNREALIZED CAPITAL GAINS HOW DO YOU MAKE MONEY FROM JAPAN'S HUGE NEW ECONOMIC STIMULUS PACKAGE JAPANESE STOCKS WHICH GOT A BROAD BOOST FROM THE ONE HUNDRED FORTY BILLION DOLLARS STIMULUS PROGRAM UNVEILED BY THE GOVERNMENT TUESDAY HAVE RALLIED SIXTEEN PERCENT THIS YEAR ON HOPES OF AN ECONOMIC RECOVERY NOW INVESTORS ARE SCRAMBLING TO INTERPRET WHAT THE NEW MEASURES REALLY MEAN FOR STOCKS AND WHICH WILL BE THE LIKELY WINNERS AND LOSERS IT'S NOT SUCH AN EASY TASK THIS TIME AROUND THE LATEST POLICIES ARE MORE AMBITIOUS THAN ANY OF THE GOVERNMENT'S THREE PREVIOUS ATTEMPTS TO PRIME THE ECONOMY DURING THE PAST SEVENTEEN MONTHS THE MEASURES FEATURE NOT ONLY CONVENTIONAL PUBLIC WORKS SPENDING BUT ALSO NEW INITIATIVES IN DEREGULATION AND SOME FIFTY SIX BILLION DOLLARS IN TAX CUTS TO PROD RELUCTANT CONSUMERS THIS DEPARTURE FROM JAPAN'S OLD APPROACH TO PUMP PRIMING WHICH SIMPLY THREW A LOT OF MONEY AT GIANT PROJECTS SUCH AS BULLET TRAINS AND NEW HIGHWAYS COMPLICATES THE PICTURE FOR INVESTORS NO LONGER CAN THEY RELY ON THE OLD STRATEGY OF SIMPLY LOADING UP ON A FEW BIG CONSTRUCTION STOCKS TO PROFIT FROM THE GOVERNMENT'S LARGESS WHILE THIS PACKAGE DOES INCLUDE SOME OLD STYLE PUBLIC WORKS SPENDING A LARGE PART OF THE MONEY IS GOING STRAIGHT TO INDIVIDUALS' POCKETS QUOTE THIS RECOVERY WILL BE THREE PRONGED HIGHER PURCHASING POWER NEW STYLE PUBLIC WORKS SPENDING AND DEREGULATION PARTICULARLY MULTIMEDIA QUOTE SAYS NOBUMITSU KAGAMI EXECUTIVE VICE PRESIDENT OF NOMURA INVESTMENT MANAGEMENT COMPANY TO PLAY THE MULTIMEDIA THEME NOMURA HAS BEEN INCREASING HOLDINGS OF SONY CORPORATION AND FUJITSU LIMITED SAYS MR. KAGAMI THE GOVERNMENT HAS ANNOUNCED PLANS TO BUILD A VAST TELECOMMUNICATIONS NETWORK AND MUCH OF THE PUBLIC WORKS MONEY MAY BE GEARED TO BUILDING A JAPANESE VERSION OF THE INFORMATION HIGHWAY NOMURA REASONS THAT BOTH SONY AND FUJITSU ARE WELL POSITIONED TO BENEFIT FROM SUCH DOMESTIC DEVELOPMENTS FUJITSU MEANTIME GOT A BOOST OF ITS OWN TUESDAY WHEN THE COMPANY'S PRESIDENT DISCLOSED PROJECTIONS THAT PRETAX PROFITS WOULD MORE THAN DOUBLE DURING THE NEXT FISCAL YEAR ON THE SOFTWARE SIDE OF JAPANESE DEREGULATION THERE'S TOKYO BROADCASTING SYSTEM INCORPORATED WHICH IS BOTH A BIG PRODUCER OF TELEVISION SHOWS AND A MAJOR NETWORK BROADCASTER IN JAPAN THEY'RE FLEXIBLE SAYS MASAYOSHI KATSUDA CHAIRMAN OF KLEINWORT BENSON INVESTMENT MANAGEMENT COMPANY DEREGULATION WILL GIVE THEM LOTS OF NEW BUSINESSES AND THEY CAN TELEVISE LOTS OF MOVIES THEY OWN TO BE SURE THE JAPANESE MARKET HAS PROMISED PLENTY IN THE PAST ONLY TO FALL SHORT IN THE FOLLOW THROUGH WHILE THE ANNOUNCEMENT OF THE ECONOMIC PACKAGE WAS A RELIEF AFTER BEING DELAYED BY POLITICAL TURMOIL AND SPLITS OVER HOW TO FINANCE THE TAX CUTS MOST ANALYSTS DON'T HAVE HIGH HOPES FOR AN IMMEDIATE RECOVERY AMONG OTHER THINGS EXPERTS WORRY THAT THE TAX CUTS MAY ONLY LAST FOR ONE YEAR WHICH COULD DULL THEIR STIMULATIVE EFFECT BY DISCOURAGING PEOPLE FROM SPENDING THE MONEY AS A RESULT ANALYSTS ARE HEDGING THEIR BETS ABOUT THE STRENGTH OF AN EVENTUAL REBOUND AND INVESTING ACCORDINGLY FOR INSTANCE ONE BIG CHANGE IN JAPAN IN RECENT YEARS HAS BEEN THE ABRUPT ABOUTFACE IN CONSUMER HABITS WITH ONCE FREESPENDING JAPANESE TURNING VICIOUSLY COSTCONSCIOUS THE NEWLY ANNOUNCED TAX CUTS SHOULD PUT AN EXTRA TWO THOUSAND FIVE HUNDRED DOLLARS IN THE POCKETBOOKS OF UPPER INCOME JAPANESE FAMILIES BUT WHILE MOST ANALYSTS AGREE THAT THIS SHOULD SPUR MORE SPENDING THEY EXPECT JAPANESE SHOPPERS TO BE FRUGAL AS A RESULT DISCOUNTERS SUCH AS CLOTHING RETAILER AOYAMA TRADING SHOULD CONTINUE TO BENEFIT FROM CONSUMERS' PENNY PINCHING AFTER HAVING BEEN STRONG STOCK MARKET PERFORMERS LATELY THE GOVERNMENT'S ANNOUNCEMENT TUESDAY THAT IT WOULD CUT SALES TAXES ON NEW CARS TO THREE PERCENT FROM FOUR POINT FIVE PERCENT SHOULD FURTHER BUOY DEMAND IN THE JAPANESE DOMESTIC CAR MARKET THIS YEAR INVESTMENT MANAGERS SAY STRONG AUTO SALES WERE ALREADY ANTICIPATED AS HIGHER CHARGES FOR SAFETY CERTIFICATION ON OLDER VEHICLES ENCOURAGED CAR OWNERS TO TRADE IN MODELS THEY BOUGHT IN BOOM TIMES A FEW YEARS AGO TOYOTA MOTOR CORPORATION IS ONE OF THE LIKELIEST BENEFICIARIES BEING A LEADING PRODUCER OF JAPANESE SUBCOMPACT CARS WHICH ARE USEFUL FOR FAMILIES AND FRUGAL TOO JAPANESE CONSUMERS TEND TO HAVE A HIGH LEVEL OF LOYALTY TO THEIR CAR BRAND SAYS PETER BOARDMAN AN ANALYST AT U. B. S. SECURITIES COMPANY AND SINCE TOYOTA HAS ONE OF THE HIGHEST RATIOS OF DOMESTIC SALES FOR TOTAL TURNOVER IT'S WELL PLACED TO PROFIT FROM A CONSUMER REBOUND HE ADDS ON THE INTERNATIONAL FRONT A WEAKER YEN COULD MAKE JAPANESE PRODUCTS CHEAPER FOR FOREIGN BUYERS AND SHOULD HELP EXPORTS APART FROM THE NEW STIMULUS MEASURES THE CURRENCY COULD COME UNDER PRESSURE FROM INTERNATIONAL INTEREST RATE MOVEMENTS WITH U. S. RATES EDGING UP AND JAPANESE RATES EXPECTED TO FALL FOREIGN INVESTORS WHO HAVE BEEN SNAPPING UP JAPANESE STOCKS FOR WEEKS HAVE FAVORED ELECTRONICS MAKERS FOR THIS REASON AMONG THOSE STOCKS AIWA COMPANY PLAYS ON THE WEAKER YEN AND THE FRUGAL CONSUMER SAYS ALEXANDER WILBERFORCE AN ANALYST AT SMITH NEW COURT P. L. C. THEY'RE VERY UNIQUE MAKING LOW COST AND WELL DESIGNED PRODUCTS HE SAYS THEY SEEM LIKE A VERY NIMBLE COMPANY FOR ALL THE CHANGES IN JAPAN THE LATEST ECONOMIC PACKAGE STILL CONTAINS A SIZABLE DOSE OF OLD FASHIONED CONSTRUCTION SPENDING BUT SOME OF THE RELIABLE OLD NAMES SUCH AS SHIMIZU CORPORATION HAVEN'T EXPERIENCED THEIR USUAL BOOST POSSIBLY BECAUSE OF A TAINT FROM LAST SUMMER'S CONSTRUCTIONINDUSTRY SCANDALS INSTEAD INVESTORS ARE TARGETING HOME CONSTRUCTION SINCE EARLIER GOVERNMENT SUPPORT FOR HOME LENDING HAS MADE HOUSING STARTS ONE OF THE FEW BRIGHT SPOTS IN THE CURRENT ECONOMY TWO PICKS ARE MITSUI REAL ESTATE SALES COMPANY AND TOKYU LAND CORPORATION BOTH LARGE LANDHOLDERS THAT SPECIALIZE IN RESIDENTIAL BUILDING AND ENJOY STRONG GOVERNMENT CONNECTIONS TOKYO STOCKS ROSE ON THE BACK OF THE GOVERNMENT'S COMPROMISE ON TAX REFORM BUT THE COMPROMISE FAILED TO INSPIRE OVERSEAS INVESTORS TO CONTINUE THEIR RECENT BUYING SPREE AND PROFIT TAKING SCALED BACK SHARP GAINS MADE EARLIER IN THE DAY IN EUROPE MARKETS REGAINED SOME GROUND LOST MONDAY IN REACTION TO LAST WEEK'S INCREASE IN SHORT TERM U. S. INTEREST RATES THE FRANKFURT MARKET GAINED ONE POINT THREE PERCENT LONDON SHARES CLOSED HIGHER BUT UNCERTAINTY ABOUT THE MARKET'S DIRECTION CAUSED PROFIT TAKERS TO WEAKEN EARLY GAINS WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED SIXTEEN POINT ONE NINE UP ZERO POINT THREE SIX REFLECTING HIGHER ASIA SLASH PACIFIC AND EUROPEAN MARKETS AND LOWER AMERICAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT TWO HUNDRED TWENTY THREE POINT TWO ONE UP SEVEN POINT NINE THREE OR THREE POINT SEVEN PERCENT WITH ASIATIC DEVELOPMENT OF MALAYSIA POSTING A SIX POINT EIGHT PERCENT GAIN IN ITS LOCAL CURRENCY TOBACCO STOCKS TRAILED AT EIGHTY FIVE POINT FIVE SIX DOWN ONE POINT FOUR SIX OR ONE POINT SEVEN PERCENT WITH IMASCO OF CANADA SLIDING FIVE POINT NINE PERCENT IN LOCAL CURRENCY THE NIKKEI JUMPED MORE THAN TWO HUNDRED POINTS AT THE OUTSET OF TRADING AND THEN GAINED STEADILY THROUGH THE MORNING ON SIGNS OF THE IMPENDING TAX COMPROMISE BUT SHARES DROOPED IN THE AFTERNOON FOLLOWING THE ANNOUNCEMENT THAT AN AGREEMENT HAD BEEN REACHED THE RELATIVELY LOW LEVEL OF OVERSEAS INTEREST DURING THE MORNING CONCERNED THE MARKET ESPECIALLY GIVEN THE NIKKEI'S STEADY GAINS OF THE PAST MONTH THE ANNOUNCEMENT ITSELF WAS AN ANTICLIMAX AS THE MARKET WIDELY EXPECTED THE AGREEMENT IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX ROSE TWENTY ONE POINT ONE POINTS TO THREE THOUSAND FOUR HUNDRED FORTY POINT TWO WELL OFF ITS INTRADAY HIGH AFTER DROPPING ONE POINT SIX PERCENT MONDAY THE F. T. S. E. THIRTY STOCK INDEX GAINED EIGHT POINT SIX POINTS TO TWO THOUSAND SIX HUNDRED FORTY ONE POINT NINE VOLUME WAS ONE POINT OH TWO BILLION SHARES UP FROM EIGHT HUNDRED NINETY FOUR POINT THREE MILLION SHARES MONDAY SHARES TOOK OFF IN THE MORNING AFTER THE BANK OF ENGLAND SIGNALED A CUT IN ITS MINIMUM LENDING RATE TO FIVE POINT TWO FIVE PERCENT FROM FIVE POINT FIVE PERCENT BUT PRICES BEGAN A SLOW AND STEADY DRIFT DOWNWARD THOUGH STILL FINISHING HIGHER ON THE DAY AFTER MONDAY'S SHARP DROP IN PRICES THE MARKET'S CAUTION STEMS MAINLY FROM UNCERTAINTY ABOUT WHAT INCREASING INTEREST RATES IN THE U. S. MIGHT MEAN FOR LONDON SHARES AND OTHER STOCK MARKETS AROUND THE WORLD THAT HAVE SEEN U. S. MONEY PILING INTO THEIR MARKETS IN FRANKFURT SHARES RECOVERED ALMOST HALF OF MONDAY'S TWO POINT EIGHT PERCENT DROP THE D. A. X. THIRTY STOCK INDEX CLIMBED TWENTY SEVEN POINT EIGHT ONE POINTS TO TWO THOUSAND ONE HUNDRED SEVEN POINT TWO ONE POINTS THE MARKET WAS BOLSTERED BY GAINS MONDAY ON THE NEW YORK STOCK EXCHANGE BUT VOLUME WAS RELATIVELY LOW 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END QUOTE WHAT YOU SEE IS WHAT YOU GET QUOTE SAID WHITE HOUSE BUDGET DIRECTOR LEON PANETTA ON MONDAY BY WAY OF DESCRIBING THE CLINTON FY NINETEEN NINETY FIVE BUDGET THIS TURNS OUT TO BE GOOD ADVICE BECAUSE WHAT WE SEE IN THE ACTUAL BUDGET NUMBERS CONTRASTS SO MUCH WITH WHAT MR. PANETTA AND THE BELTWAY ECHO CHAMBER ARE SAYING THE TOUGHEST BUDGET ON SPENDING CUTS THE CONGRESS HAS YET SEEN DECLARED PRESIDENT CLINTON LEAN TIMES CHIPPED IN THE NEW YORK TIMES TAKING ITS CUE FROM WHITE HOUSE AND CONGRESSIONAL SPINNERS THE MEDIA AND INTEREST GROUP CHORUS MAKES IT SOUND AS IF FISCAL DISCIPLINE HAS FINALLY HIT FAT CITY U. S. A. IF ONLY THIS WERE TRUE FOR THE REAL STORY WE TURNED TO THE BOWELS OF THE BUDGET TO PAGES ONE HUNDRED NINETEEN TO ONE HUNDRED TWENTY ONE OF THE HISTORICAL TABLES TABLE EIGHT POINT NINE WHICH IS ILLUSTRATED IN THE NEARBY CHART SHOWS SPENDING AUTHORITY ON KEY DOMESTIC AREAS FROM NINETEEN SEVENTY SIX THROUGH THE CLINTON BUDGET ESTIMATES SEE ACCOMPANYING ILLUSTRATION W. S. J. FEBRUARY NINTH NINETEEN NINETY FOUR THE CHART SHOWS ONLY DISCRETIONARY ACCOUNTS MEANING IT LEAVES OUT THE ENTITLEMENTS SUCH AS MEDICARE AND MEDICAID THAT HAVE BEEN GROWING EVEN FASTER IT ALSO EXCLUDES DEFENSE WHICH MR. CLINTON HAS BEEN CUTTING AS FAST AS HE POLITICALLY IS ABLE THE SPENDING HISTORY IS ILLUMINATING FROM NINETEEN SEVENTY SIX TO NINETEEN EIGHTY ESSENTIALLY THE CARTER YEARS DOMESTIC SPENDING WENT ON A TEAR THEN THE GIPPER RODE INTO TOWN RONALD REAGAN'S BUDGETS EXPANDED DEFENSE SPENDING AND NEVER DID ROPE IN ENTITLEMENTS BUT THERE'S NO DOUBT THEY CUT DISCRETIONARY ACCOUNTS BY NINETEEN EIGHTY EIGHT TOTAL NONDEFENSE DOMESTIC SPENDING WAS STILL LOWER THAN IT HAD BEEN IN NINETEEN EIGHTY ONE NO WONDER LIBERALS DECLARED HIS BUDGETS DEAD ON ARRIVAL THE BUSH YEARS SAW A RETURN TO CARTER ONLY MORE SO TO GET HIS NINETEEN NINETY BUDGET DEAL WITH DEMOCRATS DICK DARMAN SOLD HIS PRESIDENT'S BIRTHRIGHT AND DOMESTIC SPENDING BOOMED FROM NINETEEN EIGHTY NINE TO NINETEEN NINETY THREE DOMESTIC BUDGET AUTHORITY CLIMBED TO TWO HUNDRED TWELVE POINT THREE BILLION DOLLARS FROM ONE HUNDRED FORTY FIVE POINT TWO BILLION DOLLARS A WHOPPING FORTY FIVE PERCENT INCREASE NO WONDER VOTERS DIDN'T BELIEVE MR. BUSH WHEN HE TRIED TO CAMPAIGN IN NINETEEN NINETY TWO AS A BORN AGAIN FISCAL CONSERVATIVE THE CLINTON YEARS ARE CONTINUING THE BUSH PATTERN OF TALKING TOUGH BUT SILENTLY SPENDING AWAY THE CHART SHOWS HEALTHY GAINS IN DOMESTIC SPENDING THROUGH NINETEEN NINETY SIX THE FISCAL DISCIPLINE SUCH AS IT IS OCCURS ONLY IN THE OUT YEARS AS PEOPLE IN WASHINGTON LIKE TO SAY WHICH MEANS IN BILL CLINTON'S SECOND TERM WHICH MEANS IT WILL NEVER HAPPEN EVEN BY MR. CLINTON'S OWN BUDGET TABLE DOMESTIC SPENDING WILL CLIMB BY ELEVEN BILLION DOLLARS IN FISCAL NINETEEN NINETY FIVE TO TWO HUNDRED TWENTY SEVEN POINT TWO BILLION DOLLARS OR A HEALTHY FIVE PERCENT TIM MURIS A BUDGET EXPERT FROM THE REAGAN ERA NOW AT GEORGE MASON UNIVERSITY HAS INSPECTED THE FINE PRINT AND SAYS WE SHOULD INCLUDE ANOTHER FOUR POINT NINE BILLION DOLLARS IN FY NINETEEN NINETY FIVE FOR USER FEES AND HEALTH SPENDING THAT PUTS THE NINETEEN NINETY FIVE INCREASE ALONE AT SEVEN POINT THREE PERCENT OR TWO AND A HALF TIMES THE RATE OF INFLATION THIS IS QUOTE LEAN TIMES QUOTE IN WHAT IS BECOMING ITS TRADEMARK THE CLINTON WHITE HOUSE HAS TRIED TO MASK ALL OF THIS WITH SMOKE ABOUT ONE HUNDRED FIFTEEN PROGRAM ELIMINATIONS AND SUPPOSEDLY TOUGH CUTS THE CLINTONITES APPARENTLY UNDERSTAND THEY CAN'T BE HONEST AND PASS THEIR PROGRAM WITH THEIR NINETEEN NINETY FIVE BUDGET PRESENTATION MESSRS CLINTON AND PANETTA HAVE TRULY EARNED THAT MOST COVETED OF BELTWAY ADJECTIVES DARMANESQUE AN AMERICAN STOCK EXCHANGE SEARCH COMMITTEE WILL RECOMMEND TOMORROW THAT ITS BOARD OF GOVERNORS NAME RICHARD F. SYRON FEDERAL RESERVE BANK OF BOSTON PRESIDENT AS THE EXCHANGE'S NEW CHAIRMAN IF APPROVED BY THE AMEX BOARD AND IF HE ACCEPTS THE JOB THE FIFTY YEAR OLD MR. SYRON WOULD SUCCEED JAMES JONES THE FORMER OKLAHOMA CONGRESSMAN WHO LEFT THE EXCHANGE LAST SUMMER TO BECOME THE U. S. AMBASSADOR TO MEXICO SINCE MR. JONES'S DEPARTURE JULES WINTER HAS SERVED AS ACTING CHAIRMAN OF THE EXCHANGE THOUGH OFFICIALS CLOSE TO THE SEARCH CAUTIONED THAT THE AMEX BOARD COULD VETO THE COMMITTEE'S RECOMMENDATION PEOPLE ON THE AMEX BOARD SAID IT WAS UNLIKELY THE BOARD WOULD REJECT MR. SYRON QUOTE CONSIDERING HOW LONG IT HAS TAKEN TO FIND A CANDIDATE IT WOULD BE PRETTY UNUSUAL IF WE DIDN'T GO ALONG WITH THIS QUOTE SAID ONE PERSON ON THE BOARD SOME INDUSTRY EXECUTIVES SUGGESTED THAT ONE OF THE REASONS THE SEARCH TOOK SO LONG WAS THAT NOBODY WANTED THE JOB THE AMERICAN EXCHANGE IS RUNNING A FAR DISTANT THIRD TO THE NEW YORK STOCK EXCHANGE AND THE NASDAQ STOCK MARKET WHICH HAVE GARNERED THE MAJOR SHARE OF NEW STOCK LISTINGS IN RECENT YEARS AND HAVE ENJOYED MOST OF THE BOOM IN STOCK TRADING VOLUME BUT ACCORDING TO PEOPLE FAMILIAR WITH THE AMEX THE SEARCH COMMITTEE INTERVIEWED ABOUT SEVENTY FIVE CANDIDATES BEFORE DECIDING ON A SHORT LIST THAT INCLUDED WENDY GRAMM FORMER CHAIRMAN OF THE COMMODITY FUTURES TRADING COMMISSION MR. SYRON HAS BEEN PRESIDENT OF THE FEDERAL RESERVE BANK OF BOSTON SINCE JANUARY NINETEEN EIGHTY NINE AND BEFORE THAT WAS PRESIDENT OF THE FEDERAL HOME LOAN BANK OF BOSTON A BOSTON NATIVE WITH A DOCTORATE IN ECONOMICS FROM TUFTS UNIVERSITY HE JOINED THE FED'S STAFF IN NINETEEN SIXTY EIGHT AND LATER SERVED AS SPECIAL ASSISTANT TO THEN FED CHAIRMAN PAUL VOLCKER WHILE ON LEAVE FROM THE FED HE SERVED AS DEPUTY BUDGET DIRECTOR FOR MASSACHUSETTS AND A DEPUTY ASSISTANT SECRETARY OF THE U. S. TREASURY IN THE CARTER ADMINISTRATION SOME INDUSTRY EXECUTIVES THINK NONE OF MR. SYRON'S PAST EXPERIENCES WILL BE AS CHALLENGING AS THE AMEX POSITION THE AMEX IS AT A CRUCIAL JUNCTURE SAID MURIEL SIEBERT WHO HEADS A BROKERAGE FIRM THAT BEARS HER NAME THE NEXT CHAIRMAN IS GOING TO HAVE A HARDER JOB BECAUSE OF ALL THE GROWTH ON NASDAQ DAVID WESSEL IN WASHINGTON D. C. CONTRIBUTED TO THIS ARTICLE COMPAQ COMPUTER CORPORATION HEDGING ITS BETS IN THE PERSONAL COMPUTER INDUSTRY'S LATEST CHIP WAR DOWNPLAYED A NEW CHIP BACKED BY INTERNATIONAL BUSINESS MACHINES CORPORATION AND APPLE COMPUTER INCORPORATED BUT SAID IT MIGHT STILL JOIN THEM IF THE DEVICE TURNS OUT TO BE A BIG SELLER COMPAQ PRESIDENT AND CHIEF EXECUTIVE ECKHARD PFEIFFER SAID IN A BRIEFING TO REPORTERS HERE THAT HE DOUBTED P. C.S BASED ON THE NEW CHIP WILL SELL FAST ENOUGH TO CREATE AN INDUSTRY STANDARD BUT HE INDICATED THAT HE'S KEEPING HIS OPTIONS OPEN ANYWAY QUOTE WE'RE CURRENTLY EXPLORING THE FEASIBILITY AND REQUIREMENTS QUOTE OF MAKING P. C.S THAT COULD RUN ON EITHER THE NEW POWERPC CHIP OR ON TODAY'S INDUSTRY STANDARD INTEL CORPORATION DESIGNS HE SAID GARY STIMAC A COMPAQ SENIOR VICE PRESIDENT SAID THE HOUSTON BASED COMPANY PLANS BY NINETEEN NINETY FIVE OR NINETEEN NINETY SIX TO HAVE DEVELOPED A SERVER P. C. INTO WHICH A CUSTOMER CAN PLUG PRINTED CIRCUIT BOARDS CONTAINING INTEL CHIPS POWERPC OR A THIRD CHIP FLAVOR M. I. P. S. FROM SILICON GRAPHICS INCORPORATED A SERVER IS A SOUPED UP P. C. USED TO HANDLE COMMON TASKS FOR NETWORKS OF OTHER P. C.S THE CAUTIOUS STRATEGY FROM THE WORLD'S THIRD BIGGEST P. C. MAKER AFTER I. B. M. AND APPLE REFLECTS THE QUANDARY NOW FACING THE INDUSTRY AS I. B. M. APPLE AND MOTOROLA INCORPORATED PROMOTE THEIR JOINTLY DEVELOPED POWERPC STANDARD SO FAR ONLY ONE GROUP OF PRODUCTS I. B. M.'S R. S. SIX THOUSAND WORKSTATIONS ARE ON THE MARKET USING POWERPC OUR VIEW IS THAT MOST PEOPLE WON'T SHIFT TO A POWERPC PROCESSOR FROM INTELBASED SYSTEMS MR. STIMAC SAID SIMILARLY MR. PFEIFFER SAID THAT BY THE TIME POWERPCS BECOME WIDELY AVAILABLE INTEL WILL HAVE NEW CHIPS ON THE MARKET MATCHING POWERPC'S PERFORMANCE STOCK PRICES WERE MIXED AS THE BOND MARKET'S TROUBLES WEIGHED HEAVILY ON TRADING THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE EDGED DOWN ZERO POINT TWO NINE POINT TO THREE THOUSAND NINE HUNDRED SIX POINT OH THREE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX SLIPPED ZERO POINT SEVEN ONE TO FOUR HUNDRED SEVENTY ONE POINT OH FIVE BUT THE NASDAQ COMPOSITE INDEX ROSE THREE POINT FIVE OH TO SEVEN HUNDRED EIGHTY TWO POINT SEVEN OH ECONOMICALLY SENSITIVE STOCKS CONTINUED TO OUTPERFORM WITH CYCLICALS SUCH AS GENERAL MOTORS ALLIEDSIGNAL AND CATERPILLAR LEADING THE DOW JONES INDUSTRIALS OFFSETTING THOSE GAINS WERE LOSSES AMONG CONSUMER STOCKS SUCH AS SEARS PROCTER AND GAMBLE AND PHILIP MORRIS JOSEPH R. LIRO CHIEF ECONOMIST AT S. G. WARBURG SAID THE BOND MARKET'S WOES WON'T BELEAGUER THE STOCK MARKET FOR LONG HE POINTED TO YESTERDAY'S REPORT OF FURTHER GAINS IN PRODUCTIVITY IN THE FOURTH QUARTER QUOTE STOCKS ARE GOING TO GET SOME REINFORCEMENT FROM EARNINGS NEWS OVER THE NEXT SEVERAL QUARTERS QUOTE MR. LIRO SAID I DON'T THINK THE STOCK MARKET WILL TAKE ITS DIRECTION FROM RATES IN THE SHORT RUN THOUGH SOME ANALYSTS SAID STOCKS COULD GET HAMMERED IF THE BOND MARKET FACING A SEMIANNUAL AUCTION OF THIRTY YEAR TREASURY BONDS TOMORROW CONTINUES TO SLUMP WORLD WIDE STOCK PRICES GAIN IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ROSE ZERO POINT THREE SIX TO ONE HUNDRED SIXTEEN POINT ONE NINE STOCK PRICES WERE MIXED VOLUME TOTALED THREE HUNDRED EIGHTEEN MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND ONE HUNDRED SEVENTY TWO ISSUES ROSE AND NINE HUNDRED SIXTY TWO FELL THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN SIX FOUR OH MARKS AND ONE HUNDRED EIGHT POINT SEVEN FIVE YEN COMPARED WITH ONE POINT SEVEN FIVE NINE OH MARKS AND ONE HUNDRED EIGHT POINT SEVEN OH YEN MONDAY I READ YOUR ARTICLE ON TEXAS MUTUAL FUNDS AND I WAS DISAPPOINTED THAT IT EMPHASIZED THE NEGATIVE ASPECTS OF LONGER TERM PERFORMANCE HISTORIES I ACKNOWLEDGE THAT THE FIVE YEAR AND TEN YEAR PERFORMANCE RECORDS OF THE FUNDS YOU MENTIONED TRAIL THE INDUSTRY AVERAGES BUT I WOULD POINT OUT THE PROGRESS THAT OUR FUND HAS MADE IN THE PAST FEW YEARS AND THE ENVIRONMENT IN WHICH WE HAVE OPERATED CONCORDE VALUE FUND INCORPORATED IS A NO LOAD EQUITY FUND OPERATING UNDER THE VALUE TRADITION A PHILOSOPHY THAT DID NOT PERFORM WELL DURING THE LATE NINETEEN EIGHTIES INSTEAD IT WAS A PERIOD WHEN GROWTH FUNDS WERE THE FAVORED INVESTMENT AND OUR FUND'S PERFORMANCE DURING THOSE YEARS REFLECTS THE MARKET'S BIAS HOWEVER OVER THE PAST THREE YEARS WE HAVE MADE SIGNIFICANT PROGRESS THE FUND'S THREE YEAR ANNUALIZED RETURN RANKS IT IN THE TWENTY SEVENTH PERCENTILE OF MORNINGSTAR'S GROUP OF GROWTH AND INCOME FUNDS AND IS ELEVEN PERCENT HIGHER THAN MORNINGSTAR'S COMPARABLE INDEX FOR GROWTH AND INCOME FUNDS MORNINGSTAR'S RISK ADJUSTED RATING IN CONTRAST TO LIPPER'S TOTAL RETURN STATISTIC IS A COMBINATION OF PERFORMANCE AND RISK DESIGNED TO EXPRESS THE RELATIVE ATTRACTIVENESS OF A FUND'S RISK SLASH REWARD PROFILE A RATING OF QUOTE THREE QUOTE INDICATES THAT CONCORDE VALUE FUND'S RELATIVE ATTRACTIVENESS WAS IN THE MIDDLE THIRTY FIVE PERCENT OF FUNDS IN ITS CLASS AS OF DECEMBER THIRTY FIRST NINETEEN NINETY THREE AN IMPROVEMENT OVER THE RATING OF QUOTE TWO QUOTE THAT THE FUND HAD HELD SINCE MARCH THIRTY FIRST NINETEEN NINETY TWO MORNINGSTAR'S THREE YEAR RISK RATING EVALUATES A FUND'S DOWNSIDE VOLATILITY OR HOW RISKY THE FUND IS RELATIVE TO THAT OF OTHER FUNDS IN ITS CLASS THAT RATING ALSO HAS IMPROVED SINCE NINETEEN NINETY TWO FRIDAY WHICH MUST BE REPORTED TO THE S. E. C. AND OTHER REGULATORS BY THE TENTH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPEN MARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN TWO DOLLARS A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED EQUAL TO NINETY PERCENT OR MORE OF SHARES SOLD LATE FILING BASE PERIOD IS LESS THAN THREE YEARS O. OFFICER Z. OTHER BOUGHT OR SOLD DURING THE LAST TWELVE WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST TWELVE WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER SEVENTY FIVE THOUSAND DOLLARS OPTION RELATED SALES UNEXERCISED OPTIONS COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD VODAFONE GROUP P. L. C. SAID IT AGREED TO BUY THIRTY THREE PERCENT OF GENERAL MOBILE TELECOMMUNICATIONS LIMITED THE PARENT OF TALKLAND INTERNATIONAL LIMITED FROM FRANCE'S GENERALE DES EAUX S. A. VODAFONE SAID IN A STATEMENT IT WILL PAY TWENTY NINE POINT TWO MILLION POUNDS FORTY THREE POINT THREE MILLION DOLLARS FOR THE STAKE THROUGH THE ISSUE OF VODAFONE SHARES IT WILL ALSO LEND TWENTY NINE MILLION POUNDS TO GENERAL MOBILE WHAT'S IN MY HANDS WHY CONAN DOYLE DRACULA DUSK JOCKEY DATEQ INFORMATION NETWORK INCORPORATED SAID ROBERT L. STANLEY ITS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE RESIGNED THE COMPANY WHICH PROVIDES AUTOMOBILE INSURERS WITH MOTOR VEHICLE REPORTS GAVE NO REASON FOR MR. STANLEY'S DEPARTURE NEITHER COMPANY EXECUTIVES NOR MR. STANLEY COULD BE REACHED FOR COMMENT DATEQ SAID RICHARD HUNTER CROSS THE THIRD WILL SUCCEED MR. STANLEY AS PRESIDENT AND CHIEF EXECUTIVE MOST RECENTLY MR. CROSS WAS CHIEF EXECUTIVE OF NORCOM INCORPORATED SPECTRUM INFORMATION TECHNOLOGIES INCORPORATED LAUNCHED A FULL SCALE COUNTERATTACK YESTERDAY AIMED AT DISCREDITING JOHN SCULLEY'S CONTENTION THAT HE QUIT BECAUSE HE HAD BEEN MISLED ABOUT THE COMPANY'S DEEPENING PROBLEMS THE NEW EFFORT BY THE COMPANY WHOSE STOCK PRICE FELL ABOUT SIXTY FIVE PERCENT IN THE WAKE OF MR. SCULLEY'S SUDDEN RESIGNATION THIS WEEK DRAWS HARD BATTLE LINES BETWEEN THE TWO SIDES MR. SCULLEY THE FORMER CHAIRMAN OF APPLE COMPUTER INCORPORATED CLAIMS HE WAS DUPED BY THE COMPANY AND THE COMPANY CLAIMS MR. SCULLEY IS LYING SPECTRUM GENERAL COUNSEL CHRISTOPHER FRANCO IN MAKING THE COMPANY'S MOST DETAILED RESPONSE YET TO MR. SCULLEY'S CHARGES PROVIDED COMPANY DOCUMENTS AND DESCRIBED MEETINGS IN WHICH MR. SCULLEY SUPPOSEDLY LEARNED OF SPECTRUM'S PROBLEMS THE ISSUES INCLUDE STOCK OPTIONS EXERCISED BY TOP INSIDERS AND A PROBE BY THE SECURITIES AND EXCHANGE COMMISSION INTO THE COMPANY'S LICENSING AGREEMENTS AND ALLEGED STOCK MANIPULATION MEANWHILE THE COMPANY SAID IT LEARNED LATE YESTERDAY THAT ITS NEW AUDITOR KMPG PEAT MARWICK HAD RESIGNED MR. SCULLEY HAD HIRED THE FIRM TO PERFORM AN AUDIT OF THE COMPANY WHICH LED SPECTRUM TO RESTATE ITS EARNINGS MONDAY TURNING PURPORTED PROFITS INTO OUTRIGHT LOSSES MR. SCULLEY QUIT THE TINY WIRELESS COMMUNICATIONS COMPANY ON MONDAY SIMULTANEOUSLY FILING A LAWSUIT IN FEDERAL DISTRICT COURT IN NEW YORK CITY AGAINST SPECTRUM'S PRESIDENT PETER CASERTA THE TEN MILLION DOLLAR SUIT CHARGES MR. CASERTA WITH WITHHOLDING INFORMATION ABOUT THE FEDERAL PROBE AND THE ACCOUNTING PROBLEM THAT FORCED SPECTRUM TO RESTATE ITS NUMBERS FOR THE PAST TWO QUARTERS ACCORDING TO THE SUIT MR. SCULLEY ALSO WAS SURPRISED TO LEARN THAT MR. CASERTA AND TWO INSIDERS EXERCISED OPTIONS AT A COMBINED PROFIT OF MORE THAN THIRTEEN MILLION DOLLARS A MONTH AFTER MR. SCULLEY JOINED THE COMPANY BUT SPECTRUM'S MR. FRANCO PAINTS A FAR DIFFERENT PICTURE OF WHAT MR. SCULLEY KNEW AND WHEN HE LEARNED OF IT THE COMPANY SAID IT WILL DISCLOSE MORE DETAILS TODAY IN A LAWSUIT IT PLANS TO FILE AGAINST MR. SCULLEY IN FEDERAL COURT IN NEW YORK OR CONNECTICUT MR. FRANCO SAID FOR EXAMPLE THAT MR. SCULLEY WAS FULLY INFORMED ABOUT SPECTRUM'S PROBLEMS INCLUDING THE FEDERAL PROBE BEFORE HE JOINED THE COMPANY MR. FRANCO SAID MR. SCULLEY DISCUSSED THE S. E. C. PROBE WITH MR. CASERTA AND OTHER SPECTRUM EXECUTIVES AT A DINNER AT CAMPAGNOLA A RESTAURANT IN NEW YORK CITY ON OCTOBER FIFTEENTH THREE DAYS BEFORE MR. SCULLEY JOINED THE COMPANY IN ADDITION WHILE MR. SCULLEY EXPRESSED SURPRISE AT THE INSIDER TRADES MR. FRANCO PROVIDED A COMPANY DOCUMENT SIGNED BY MR. SCULLEY THAT EXPLICITLY STATES THAT MR. CASERTA WOULD EXERCISE OPTIONS FOR AT LEAST ONE MILLION SHARES AFTER NOVEMBER FIFTEENTH AND THAT OTHER COMPANY INSIDERS HAD THE RIGHT TO DO SO AS WELL THEN AGAIN THE DOCUMENT ALSO ASSURED MR. SCULLEY THAT QUOTE SPECTRUM EXECUTIVES DON'T WISH TO TAKE ANY ACTIONS WHICH MIGHT BE INTERPRETED AS SHOWING A LACK OF COMMITMENT TO SPECTRUM QUOTE YET MR. CASERTA AND THE TWO OTHER INSIDERS WHO EXERCISED A LARGE CHUNK OF THEIR OPTIONS DIDN'T HOLD ON TO ANY OF THE SHARES DUMPING THEM ALL INTO THE MARKET IN LATE NOVEMBER AND EARLY DECEMBER MR. SCULLEY WOULDN'T COMMENT ON SPECTRUM'S SALVO PREFERRING TO LET A SPOKESWOMAN HANDLE HIS REBUTTAL SHE SAID MR. SCULLEY THOUGHT THE S. E. C. PROBE HAD BEEN CONCLUDED BEFORE HE ARRIVED AT SPECTRUM AND THAT HE HAD EXPECTED THE INSIDERS WOULD SELL THEIR STOCK IN AN ORDERLY FASHION AND THAT THEY WOULDN'T DO IT WITH INSIDE KNOWLEDGE SUCH AS THE S. E. C. INVESTIGATION ON ANOTHER MATTER SPECTRUM'S GENERAL COUNSEL MR. FRANCO SAID MR. SCULLEY COULD HAVE LEARNED OF THE COMPANY'S ACCOUNTING PROBLEMS SIMPLY BY READING THE COMPANY'S QUARTERLY STATEMENTS FILED WITH THE S. E. C. INSTEAD MR. FRANCO CONTENDED MR. SCULLEY DISENGAGED HIMSELF FROM SPECTRUM'S DAILY OPERATIONS AND WENT ON A HUNT FOR ACQUISITIONS WITH A CONSULTANT ARJUN GUPTA MR. SCULLEY HAD EVEN HOPED TO HAVE MR. GUPTA WHO COULDN'T BE LOCATED FOR COMMENT NAMED SPECTRUM'S CHIEF OPERATING OFFICER WHICH WOULD MEAN DILUTING MR. CASERTA'S INFLUENCE THERE WAS A CLASH THROUGHOUT JOHN'S TENURE BETWEEN JOHN AND PETER AND SPECTRUM MANAGEMENT MR. FRANCO SAID THERE WAS A LOT OF DISRUPTION WITH PEOPLE NOT KNOWING WHO'S ON FIRST IN FACT MR. SCULLEY KEPT SPECTRUM'S EXECUTIVES IN THE DARK ABOUT HIS PLANS TO LEAVE THE COMPANY UNTIL ONLY FIVE MINUTES BEFORE THE STOCK MARKET OPENED ON MONDAY MORNING A SPOKESWOMAN FOR MR. SCULLEY SAID HE HELD HIS FIRE BECAUSE HE WANTED TO COMPLETE HIS DUTIES AS CHIEF EXECUTIVE BEFORE MAKING HIS ANNOUNCEMENT MR. FRANCO NOTED THAT HE AND MR. SCULLEY HAD MET JUST A WEEK AGO WITH A TENANT IN NEW YORK'S SEAGRAM'S BUILDING ABOUT LEASING SPACE FOR SPECTRUM'S NEW CORPORATE HEADQUARTERS MR. SCULLEY ASKED THE TENANT TO DRAW UP A SUBLEASE AGREEMENT FOR FIVE THOUSAND SQUARE FEET OF SPACE THEN OVER THE PAST WEEKEND MR. SCULLEY SPOKE WITH SPECTRUM'S ATTORNEYS ABOUT CHANGING THE MANHASSET N. Y. COMPANY'S NAME TO GLOBAL WAVE COMMUNICATIONS CORPORATION MR. FRANCO SAID BUT MR. FRANCO DIDN'T NOTICE ANYTHING UNUSUAL ABOUT MR. SCULLEY'S ROUTINE UNTIL MONDAY MORNING FIVE MINUTES BEFORE THE MARKET OPENED EARLIER THAT MORNING AT ABOUT SIX THIRTY A. M. HE SAID MR. SCULLEY AND HE HAD AGREED TO PUBLICLY DISCLOSE THE EARNINGS RESTATEMENT AT NINE TWENTY A. M. ABOUT TEN MINUTES BEFORE THE MARKET OPENED LATER ON ABOUT NINE TWENTY FIVE A. M. MR. SCULLEY CALLED MR. FRANCO BACK AND DEMANDED PROOF THAT THE ANNOUNCEMENT HAD BEEN MADE SPECTRUM'S COUNSEL FRANTICALLY CALLED THE N. A. S. D. TO HALT TRADING IN THE COMPANY'S STOCK BUT THE EXCHANGE WASN'T ABLE TO CALL A HALT UNTIL NINE THIRTY FOUR A. M. BY THAT TIME MORE THAN A MILLION SHARES HAD ALREADY TRADED THE FIRST IN A RUN THAT BY THE END OF THE DAY WOULD AMOUNT TO THIRTY FIVE MILLION SHARES THE LARGEST VOLUME IN N. A. S. D. HISTORY MIGRATION PATTERNS GROW EVER MORE COMPLEX AND POTENTIALLY TROUBLESOME UNIVERSITY OF MICHIGAN DEMOGRAPHER WILLIAM H. FREY ANALYZED NINETEEN NINETY CENSUS DATA TO SEE HOW IMMIGRATION AND MIGRATION FLOWS WITHIN THE U. S. AFFECTED STATES AND REGIONS BETWEEN NINETEEN EIGHTY FIVE AND NINETEEN NINETY DOCTOR FREY FOUND THAT HISPANIC ASIAN AND BLACK IMMIGRANTS FROM ABROAD PREDICTABLY CLUSTERED IN THE HALF DOZEN EASILY ACCESSIBLE STATES WITH LARGE MINORITY POPULATIONS CALIFORNIA NEW YORK TEXAS NEW JERSEY ILLINOIS AND MASSACHUSETTS AT THE SAME TIME HOWEVER RESIDENTS OF THESE STATES WERE LEAVING IN DROVES AND ALL BUT CALIFORNIA LOST SUBSTANTIALLY MORE PEOPLE TO OTHER STATES THAN THEY GAINED FROM THEM EVEN CALIFORNIA LONG A MECCA FOR RESIDENTS FROM OTHER STATES HAD AN UNUSUALLY SMALL INCREASE OF POPULATION GAIN FROM INTERNAL MIGRATION THOSE LEAVING THE SIX STATES INCLUDED STRIKINGLY LARGE NUMBERS OF LESS SKILLED LOWER INCOME WHITES SOME HAD LOST THEIR JOBS OFTEN TO IMMIGRANTS BUT DOCTOR FREY BELIEVES MANY WERE SEEKING TO DISTANCE THEMSELVES FROM THE NEWCOMERS OFTEN MOVING ONLY TO NEIGHBORING STATES AT THE OTHER END OF THE SCALE WERE STATES LARGELY IN THE SOUTHEAST AND THE WEST WHERE PEOPLE COMING IN FROM OTHER STATES FAR OUTNUMBERED THOSE LEAVING BIGGEST GAINERS WERE FLORIDA GEORGIA NORTH CAROLINA VIRGINIA WASHINGTON AND ARIZONA STRONG ECONOMIES AND SLASH OR GOOD CLIMATE WERE THE MAIN ATTRACTIONS EXCEPT FOR FLORIDA MOST HAD COMPARATIVELY LOW IMMIGRATION FROM ABROAD EVEN IN FLORIDA THE NET GAIN FROM INTERNAL MIGRATION WAS ALMOST THREE TIMES THAT FROM ABROAD AND THE ECONOMICALLY DEPRESSED STATES IN THE UPPER MIDWEST AND OIL PATCH SAW MINIMAL IMMIGRATION FROM ABROAD AND OTHER STATES BUT HAD LARGE OUTFLOWS OF RESIDENTS MICHIGAN OHIO IOWA OKLAHOMA AND LOUISIANA WERE AMONG THESE STATES THE EXODUS INCLUDED SUBSTANTIAL NUMBERS OF BETTER EDUCATED MEN AND WOMEN HEADING FOR GREENER PASTURES IN THE SOUTHEAST AND PACIFIC COAST DOCTOR FREY WORRIES ABOUT A QUOTE BALKANIZING QUOTE PATTERN EMERGING FROM THESE TRENDS HE WARNS THAT THE CONTINUATION OF THESE PROCESSES A MINORITY DOMINATED IMMIGRATION COUPLED WITH AN INTERNAL MIGRATION WHITE FLIGHT COULD LEAD TO SHARPLY DIVERGENT RACE AND SOCIODEMOGRAPHIC STRUCTURES ACROSS BROAD REGIONS AND STATES VIOLENT CRIME VICTIMS HAVE INCREASED SINCE NINETEEN SEVENTY THREE BUT THE NUMBER OF VICTIMS OF OTHER CRIMES HAS DECREASED THE GOVERNMENT'S BUREAU OF JUSTICE STATISTICS HAS ANALYZED TWENTY YEAR TRENDS SHOWN BY THE ANNUAL NATIONAL CRIME VICTIMIZATION SURVEY WHICH SINCE NINETEEN SEVENTY THREE HAS TRACKED CRIME BY INTERVIEWING LARGE NATIONAL SAMPLES OF HOUSEHOLDS THE SURVEY COVERS RAPE ROBBERY ASSAULT BURGLARY PERSONAL AND HOUSEHOLD THEFT AND MOTOR VEHICLE THEFT THE ANALYSIS REVEALS THAT THE NUMBER OF PEOPLE VICTIMIZED BY THE COVERED CRIMES HAD FALLEN SIX PERCENT BY NINETEEN NINETY TWO THERE WERE THIRTY FIVE POINT SEVEN MILLION VICTIMIZATIONS IN NINETEEN SEVENTY THREE THE NUMBER PEAKED AT FORTY ONE POINT FIVE MILLION IN NINETEEN EIGHTY ONE AND THEN DROPPED FAIRLY STEADILY TO THIRTY THREE POINT SIX MILLION IN NINETEEN NINETY TWO THE BIGGEST DECLINES CAME IN THEFTS FROM INDIVIDUALS AND HOMES VIOLENT CRIMES ROBBERY RAPE AND ASSAULT PRESENTED A DIFFERENT PICTURE UP TWENTY FOUR PERCENT BY NINETEEN NINETY TWO THE REPORT NOTED THAT BLACK MEN AND WOMEN PARTICULARLY TEENAGERS WERE VICTIMIZED BY VIOLENT CRIMES IN NINETEEN NINETY TWO AT THE HIGHEST RATES EVER RECORDED VICTIMIZATIONS OF WHITE TEENAGERS ALSO ROSE MALE VICTIMS OF VIOLENT CRIMES ARE FAR MORE LIKELY TO BE VICTIMIZED BY STRANGERS THAN BY ACQUAINTANCES THE BUREAU REPORTS BUT FEMALE VICTIMS ARE AS LIKELY TO BE VICTIMIZED BY A HUSBAND BOYFRIEND OR OTHER INTIMATE AS BY A STRANGER MOST VIOLENT CRIME VICTIMS ARE VICTIMIZED BY PEOPLE OF THE SAME RACE ABOUT SEVENTY FIVE PERCENT OF WHITE VICTIMS ARE VICTIMIZED BY WHITES AND ABOUT EIGHTY FIVE PERCENT OF BLACK VICTIMS ARE VICTIMIZED BY BLACKS HISPANIC OR LATINO IT'S A CONTROVERSIAL QUESTION THE CENSUS BUREAU AND OTHER FEDERAL AGENCIES USE THE TERM HISPANIC TO DESCRIBE AMERICANS WHOSE ORIGIN WAS IN THE SPANISH SPEAKING COUNTRIES OF THE WESTERN WORLD MANY OTHER PUBLIC AND PRIVATE GROUPS FOLLOW THAT LEAD MOST NEWS MEDIA GENERALLY USE HISPANIC WHEN DISCUSSING BROAD NATIONAL TRENDS BUT THOSE IN AREAS WITH LARGE POPULATIONS FROM MEXICO AND CENTRAL AMERICA OFTEN SWITCH TO LATINO WHEN REFERRING TO THE LOCAL COMMUNITY ACADEMICS AND LIBERAL GROUPS INCREASINGLY FAVOR LATINO THEY CLAIM IT MORE ACCURATELY DESCRIBES THE ORIGIN OF MOST SPANISH SPEAKING U. S. RESIDENTS MOREOVER THEY SAY HISPANIC BECAME OFFICIAL GOVERNMENT NOMENCLATURE DURING THE NIXON ADMINISTRATION AND THAT'S A MARK AGAINST IT MANY SPANISH SPEAKING GROUPS AREN'T HAPPY WITH EITHER AND PREFER TERMS INDICATING THEIR COUNTRY OF ORIGIN SUCH AS MEXICAN AMERICAN PUERTO RICAN OR CUBAN AMERICAN SPECIALISTS WHO HAVE DELVED INTO THE ISSUE SAY PREFERENCE TENDS TO VARY BY REGION AND SOCIOECONOMIC CLASS BUSINESSMEN AND THOSE WHO HAVE BEEN IN THE U. S. FOR MANY YEARS SEEM TO PREFER QUOTE HISPANIC QUOTE WHILE POORER GROUPS OR MORE RECENT IMMIGRANTS OPT FOR QUOTE LATINO QUOTE ACTUALLY THE SPECIALISTS SAY THE TWO TERMS COVER PRETTY MUCH THE SAME GROUPS BUT THAT DOESN'T LESSEN THE DEPTH OF FEELING OVER THE ISSUE SAYS ANDRES JIMINEZ DIRECTOR OF THE CALIFORNIA POLICY SEMINAR OF THE UNIVERSITY OF CALIFORNIA IT'S A MINEFIELD THE CENSUS BUREAU HAS CHOSEN THE SITES FOR A NINETEEN NINETY FIVE TEST OF SAMPLING AND OTHER NEW TECHNIQUES TO BE USED IN THE NEXT DECENNIAL CENSUS THEY ARE NEW HAVEN CONNECTICUT OAKLAND CALIFORNIA PATERSON N. J. AND SIX RURAL PARISHES IN NORTHWESTERN LOUISIANA ALMOST HALF OF ALL VISITS TO PSYCHIATRISTS ARE MADE BY PEOPLE BETWEEN TWENTY FIVE AND FORTY FOUR YEARS OLD ACCORDING TO A STUDY BY THE NATIONAL CENTER FOR HEALTH STATISTICS OSCAR HERRERA ADMITS HE IS A CROOK EAGER TO COLLECT LUCRATIVE PREMIUMS ON LIFE INSURANCE POLICIES THE FORMER INSURANCE AGENT LIED TO CUSTOMERS AND FORGED SIGNATURES HE EVEN CHEATED HIS OWN UNCLE OUT OF TWENTY SEVEN THOUSAND DOLLARS BUT WHEN AN IRATE POLICYHOLDER FINALLY HAULED MR. HERRERA BEFORE A JURY LAST YEAR THE JURORS LET HIM OFF SCOT FREE INSTEAD THEY BLAMED HIS EMPLOYER NEW YORK LIFE INSURANCE COMPANY FOR HIS MISDEEDS AND AWARDED THE POLICYHOLDER A WIDOW WHO LOST SIXTY FIVE THOUSAND DOLLARS AN ASTOUNDING TWENTY ONE MILLION DOLLARS NEW YORK LIFE ULTIMATELY SETTLED THE CIVIL SUIT FOR AN UNDISCLOSED SUM AND PROSECUTORS HAVE BROUGHT NO CRIMINAL CHARGES STILL THE HERRERA CASE IS SENDING SHOCK WAVES THROUGH THE LIFE INSURANCE INDUSTRY FOR YEARS IT HAS BLAMED ABUSES SUCH AS THOSE ADMITTED BY MR. HERRERA ON INDIVIDUAL QUOTE ROGUE QUOTE AGENTS NOW AFTER YEARS OF FRAUD AND DECEIT BY SOME AGENTS MANY PEOPLE FIND THAT EXCUSE WEARING THIN COURTS GOVERNMENT OFFICIALS AND THE PUBLIC ARE BEGINNING TO CONCLUDE THAT THE INDUSTRY ITSELF IS A ROGUE THAT MUST BE BROUGHT TO HEEL IT'S NOT PLAUSIBLE FOR THE COMPANIES TO SAY IT'S JUST A BAD APPLE THEY CREATE A CLIMATE FOR THIS SORT OF THING SAYS JOSEPH BELTH EDITOR OF THE INSURANCE FORUM NEWSLETTER HE CONTENDS THAT WHAT GOES ON IN THE LIFE INSURANCE BUSINESS IS A NATIONAL SCANDAL CERTAINLY EVIDENCE OF CONTINUING ABUSES IS MOUNTING FLORIDA STATE REGULATORS FOR EXAMPLE ARE BATTLING METROPOLITAN LIFE INSURANCE COMPANY OVER THE PRACTICE OF MARKETING LIFE INSURANCE AS A RETIREMENT VEHICLE AND FAILING TO MAKE CLEAR TO CUSTOMERS THEY ARE BUYING INSURANCE UNDER FLORIDA LAW THAT PRACTICE IS DEEMED FRAUD AND CARRIES STIFF PENALTIES MET LIFE SAYS AS MANY AS SIXTY THOUSAND PEOPLE NATIONWIDE MAY HAVE BEEN MISLED BY ITS AGENTS AND HAS PROMISED TO PAY UP TO FORTY MILLION DOLLARS IN COMPENSATION BUT FLORIDA'S INSURANCE COMMISSIONER TOM GALLAGHER IS DETERMINED THAT MET LIFE WON'T GET AWAY WITH BLAMING AN AGENT WE HOLD COMPANIES RESPONSIBLE FOR THEIR AGENTS MR. GALLAGHER VOWS SINCE FLORIDA BEGAN ITS INVESTIGATION IN FACT AT LEAST THREE MORE COMPANIES NEW YORK LIFE SEARS ROEBUCK AND COMPANY'S ALLSTATE CORPORATION AND PRUDENTIAL INSURANCE COMPANY OF AMERICA HAVE ADMITTED THAT ONE OR MORE OF THEIR AGENTS HAVE USED A VIRTUALLY IDENTICAL MARKETING SCHEME AND INVESTIGATORS IN A DOZEN OTHER STATES ARE ALSO LOOKING AT MET LIFE'S SALES PRACTICES AT A RECENT LIFE INSURANCE CONFERENCE IN HAWAII EXECUTIVES OF OTHER INSURANCE COMPANIES THANKED A MET LIFE REPRESENTATIVE FOR TAKING THE HEAT ON THE ISSUE BUT THE HEAT SOON MAY BE ON AN ENTIRE INDUSTRY LONG ACCUSTOMED TO FREEWHEELING METHODS AND LAX REGULATION IN WASHINGTON SENATOR HOWARD METZENBAUM PLANS TO HOLD HEARINGS SOON ON MET LIFE AND OTHER INSURERS THE OHIO DEMOCRAT ALONG WITH REPRESENTATIVE JOHN DINGELL A MICHIGAN DEMOCRAT WANTS AN EXPANDED FEDERAL ROLE IN INSURANCE REGULATION ANGER OVER SALES PRACTICES COULD PROVIDE ADDITIONAL MOTIVATION TO WREST AUTHORITY FROM THE STATES MEANWHILE STATE INSURANCE COMMISSIONERS ARE WORKING TO AVERT FEDERAL REGULATION BY TRYING TO ENFORCE THEIR OWN RULES MORE EFFECTIVELY MANY WANT TO FORCE THE COMPANIES TO BE MORE CANDID ABOUT THE INVESTMENT PROSPECTS OF LIFE INSURANCE BARRING INSURERS AND THEIR AGENTS FROM SUCH MISLEADING PRACTICES AS QUOTE ILLUSTRATING QUOTE POTENTIAL RETURNS WHEN SELLING INSTEAD AGENTS WOULD HAVE TO DISCLOSE PAST PERFORMANCE MUCH AS MUTUAL FUNDS DO STATES ARE ALSO CRACKING DOWN ON ONE OF THE MOST PERVASIVE FORMS OF LIFE INSURANCE FRAUD CALLED CHURNING SEEKING OUT POLICYHOLDERS WHO HAVE BEEN PAYING PREMIUMS FOR YEARS AND HAVE FINALLY BUILT UP SOME EQUITY IN THEIR POLICIES UNSCRUPULOUS AGENTS PERSUADE THEM TO BORROW AGAINST THE VALUE OF THEIR POLICIES AND ROLL THE PROCEEDS INTO A NEW UNNECESSARY POLICY LAST YEAR NEW YORK STATE SAID IT SUSPENDED OR FINED THIRTY LIFE INSURANCE AGENTS FOR CHURNING INCLUDING AGENTS WITH EQUITABLE COMPANIES GUARDIAN LIFE INSURANCE COMPANY OF AMERICA JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY AND MUTUAL LIFE INSURANCE COMPANY OF NEW YORK ALL THE COMPANIES SAY THAT THEY TRY TO MONITOR THEIR SALESPEOPLE BUT THAT WITH THOUSANDS OF THEM A FEW GO ASTRAY BUT NEW YORK'S INSURANCE COMMISSIONER SALVATORE CURIALE PROMISES MORE ACTION WARNING EXECUTIVES AND AGENTS SHOULD BE ON NOTICE THAT PENALTIES INCLUDING FINES AND LOSS OF LICENSES WILL BE FORTHCOMING THE EFFORTS TAKEN TOGETHER REPRESENT ONE OF THE LARGEST ASSAULTS ON THE LIFE INSURANCE INDUSTRY SINCE NINETEEN OH FIVE WHEN NEW YORK'S EXPLOSIVE ARMSTRONG COMMITTEE HEARINGS LED TO FAR REACHING REFORMS ALTHOUGH THE INDUSTRY HAS STEADFASTLY RESISTED CHANGE SINCE THEN IT NOW CONCEDES THAT IT HAS LITTLE CHOICE BUT TO TRY TO CLEANSE ITSELF WE MUST MAKE SURE THAT WE ARE NEVER VULNERABLE AGAIN NEW YORK LIFE'S GENERAL COUNSEL ALICE KANE SAID IN A SPEECH TO AGENTS FOLLOWING THE HERRERA DECISION THERE IS NO DOUBT WE ARE BEING HELD TO A HIGHER STANDARD OF ACCOUNTABILITY BOTH THE INDUSTRY AND AGENT GROUPS SAY HOWEVER THAT THE PROBLEMS ARE NOT WIDESPREAD AS THEY WANT TO BUILD UP LONG TERM RELATIONSHIPS WITH CUSTOMERS AND THUS HAVE NO INTEREST IN CHEATING THEM EVEN THOUGH CONSUMERS SPEND SOME SIXTY FIVE BILLION DOLLARS ANNUALLY ON VARIOUS FORMS OF LIFE INSURANCE FEW REALLY KNOW EXACTLY WHAT THEY ARE BUYING MOST WHO TRY TO READ A POLICY ARE OVERWHELMED WITH TERMS SUCH AS PAID UP ADDITION MORTALITY CHARGE AND WAIVE OF PREMIUM RIDER AS A RESULT MANY SIMPLY BOW TO AGENTS' HIGHPRESSURE TACTICS WITHOUT KNOWING WHAT THEY ARE BUYING OR ITS COST QUOTE TO GET THE SALESMAN OUT OF THE KITCHEN A LOT OF PEOPLE TAKE ON A BURDEN THEY CAN'T HANDLE QUOTE SAYS JAMES HUNT A WOBURN MASSACHUSETTS ACTUARY ASSOCIATED WITH THE NATIONAL INSURANCE CONSUMER ORGANIZATION LIFE INSURANCE AGENTS MEANWHILE HAVE TREMENDOUS FINANCIAL INCENTIVES TO SELL INSURANCE ANY WAY THEY CAN ESPECIALLY WHOLE LIFE POLICIES WHICH CARRY NOT ONLY A DEATH BENEFIT BUT ALSO AN INVESTMENT FEATURE THE TYPICAL WHOLE LIFE POLICY PAYS BIG COMMISSIONS TO AGENTS IN THE FIRST YEAR WHILE ACCUMULATING LITTLE VALUE FOR THE POLICYHOLDER FOR INSTANCE A FORTY FIVE YEAR OLD MALE WHO BUYS A THREE HUNDRED THOUSAND DOLLAR WHOLE LIFE POLICY MIGHT PAY ABOUT SIX THOUSAND EIGHT HUNDRED DOLLARS A YEAR IN PREMIUMS WHILE HE WON'T BREAK EVEN FOR FIVE OR EVEN TEN YEARS AND LOSES EVERYTHING IF HE CASHES OUT EARLIER THE AGENT WHO SOLD HIM THE POLICY IMMEDIATELY COLLECTS A COMMISSION EQUAL TO FIFTY FIVE PERCENT OF THE FIRST YEAR PREMIUMS OR THREE THOUSAND SEVEN HUNDRED FIFTY DOLLARS ADMINISTRATIVE EXPENSES AND COMMISSIONS FOR THE AGENT'S SUPERIORS EAT UP THE REST OF THE MONEY IN THE FIRST YEAR THE CONSUMER THROWS ALL HIS MONEY AWAY ON COSTS SAYS GLENN DAILY A FINANCIAL PLANNER IN NEW YORK BAD AS THAT IS FOR THE CONSUMER THE DECEIT AND FRAUD COMMITTED BY SOME AGENTS MAKE BUYING INSURANCE EVEN RISKIER AS THE HERRERA CASE INDICATES COURT TRANSCRIPTS AND EXHIBITS IN THE DUVAL COUNTY TRIAL ILLUMINATE SOME OF THE DARKER PRACTICES EXISTING IN THE INDUSTRY MR. HERRERA JOINED NEW YORK LIFE'S CORPUS CHRISTI OFFICE IN NINETEEN EIGHTY FIVE AT AGE THIRTY TWO DRIVEN BY WHAT HE SAID WAS GREED AND A FEAR OF BEING FIRED FOR NOT MEETING SALES QUOTAS HE SOON BEGAN TO CUT CORNERS ONE OF HIS VICTIMS WAS RICHARD CRUZ WHO HAD PURCHASED TERM LIFE INSURANCE A MODERATELY PRICED POLICY THAT PROVIDES A DEATH BENEFIT BUT NO INVESTMENT GAINS WHEN MR. CRUZ SPURNED MR. HERRERA'S ENTREATIES TO SWITCH TO A MORE EXPENSIVEAND FOR MR. HERRERA LUCRATIVE WHOLE LIFE POLICY MR. HERRERA TOOK MATTERS INTO HIS OWN HANDS HE FORGED MR. CRUZ'S NAME ON AN AUTHORIZATION FORM TO AUTOMATICALLY WITHDRAW ENOUGH MONEY FROM MR. CRUZ'S CHECKING ACCOUNT TO PAY THE HIGHER WHOLE LIFE PREMIUMS THE PRACTICE SOMETIMES DONE BY HOLDING THE AUTHORIZATION FORM UP AGAINST A WINDOW TO TRACE OUT A SIGNATURE IS COMMON ENOUGH IN THE INDUSTRY TO HAVE A NAME WINDOWING MR. CRUZ'S WIFE VERONICA DISCOVERED THE LARGER WITHDRAWALS AND COMPLAINED AFTER AN INVESTIGATION NEW YORK LIFE REVERSED THE TRANSACTIONS BUT TOOK NO ACTION AT THE TIME AGAINST MR. HERRERA MR. HERRERA ALSO PERSUADED HIS UNCLE JOSE LOPEZ TO BUY AN ANNUITY FOR TWENTY SEVEN THOUSAND DOLLARS FROM NEW YORK LIFE BUT ANNUITIES PAY SMALL COMMISSIONS COMPARED WITH WHOLE LIFE SO MR. HERRERA TOOK THE MONEY FORGED HIS UNCLE'S SIGNATURE AND BOUGHT HIM A THREE HUNDRED THOUSAND DOLLAR WHOLE LIFE INSURANCE POLICY BECAUSE MR. LOPEZ WAS SEVENTY THE ANNUAL PREMIUMS WERE STEEP WITHIN TWO YEARS ALL THE MONEY MR. LOPEZ PAID HAD BEEN EATEN UP BY THE PREMIUMS MR. LOPEZ COMPLAINED AND GOT HIS MONEY BACK MR. HERRERA'S BIGGEST FRAUD INVOLVED RAMIRO AND LAMAR HERNANDEZ WHO LIVED IN BENEVIDES A POOR DUVAL COUNTY TOWN SIXTY MILES WEST OF CORPUS CHRISTI MR. HERNANDEZ WORKED AS A ROUGHNECK SUPERVISING CREWS THAT LAID OIL FIELD PIPE WHEN THE OIL BUSINESS PROSPERED SO DID THE HERNANDEZ FAMILY WHEN THE BUSINESS SUFFERED THE HERNANDEZES WENT WITHOUT HOT WATER AND LIT THEIR SMALL HOUSE WITH CANDLES THEN MR. HERNANDEZ SUDDENLY CAME INTO MONEY IN NINETEEN EIGHTY SEVEN WHEN HE HAD A NECK OPERATION HIS SURGEON LEFT A SPONGE INSIDE HIM NEAR HIS SPINE AND MR. HERNANDEZ WAS PARALYZED FROM THE NECK DOWN HE SUED AND WON A THREE HUNDRED THIRTY ONE THOUSAND DOLLAR SETTLEMENT MR. HERRERA HEARD ABOUT IT AND ALONG WITH HIS MANAGER LAUNCHED A HARD SELL CAMPAIGN AIMED AT GETTING MR. HERNANDEZ TO BUY AS MUCH INSURANCE AS POSSIBLE AFTER BEING COURTED FOR SEVERAL MONTHS MR. HERNANDEZ AGREED TO INVEST ONE HUNDRED THOUSAND DOLLARS SPLIT AMONG THREE NEW YORK LIFE ANNUITIES BUT MR. HERRERA WOULD HAVE EARNED A COMMISSION OF ONLY A FEW THOUSAND DOLLARS SO HE REFOCUSED HIS EFFORTS ON MRS. HERNANDEZ AND EVENTUALLY PERSUADED HER TO SIGN UP FOR A ONE HUNDRED THOUSAND DOLLAR LIFE INSURANCE POLICY THEN HE INCREASED HER COVERAGE TO ONE MILLION DOLLARS BY CAREFULLY ADDING A ZERO TO THE COVERAGE POLICY A MOVE THAT INCREASED HIS COMMISSION TENFOLD FOR TWO YEARS THE FRAUD WENT UNDETECTED ALTHOUGH THE PREMIUMS CAME TO TWENTY SEVEN THOUSAND DOLLARS A YEAR MRS. HERNANDEZ NEVER GOT A BILL MR. HERRERA WOULD WITHOUT HER KNOWLEDGE MAKE THE PAYMENTS BY WITHDRAWING MONEY FROM HER ANNUITIES BY WINDOWING SIGNATURES ON AUTHORIZATION FORMS EVENTUALLY THE MONEY IN THE ANNUITY ACCOUNT RAN OUT AND IN EARLY NINETEEN NINETY ONE MRS. HERNANDEZ GOT A TWENTY SEVEN THOUSAND DOLLAR BILL FROM NEW YORK LIFE WHICH SAID HER POLICY WOULD LAPSE IF SHE FAILED TO PAY THE PREMIUM SHE DISCOVERED THE FRAUD AND FILED SUIT DURING THE TRIAL NEW YORK LIFE USED THE EVIDENCE AGAINST MR. HERRERA TO PORTRAY HIM AS A CON MAN WHO ACTED ALONE BUT MRS. HERNANDEZ'S ATTORNEY FRANK HERRERA NO RELATION TO OSCAR PRESENTED EVIDENCE THAT OSCAR HERRERA'S ACTIONS GREW OUT OF THE CULTURE OF THE CORPUS CHRISTI OFFICE OSCAR HERRERA'S ATTORNEY ROLAND LEON TOOK A SIMILAR APPROACH AT THE TIME MR. HERRERA SOLD THE POLICY TO MRS. HERNANDEZ THE CORPUS CHRISTI OFFICE WAS HEADED BY RONALD DAWSON MR. DAWSON WHO HAS SINCE LEFT NEW YORK LIFE WAS AMONG ITS MOST SUCCESSFUL SALES MANAGERS AGENTS WHO WORKED FOR HIM WERE UNDER TREMENDOUS PRESSURE TO SELL QUOTE IT WAS DO OR DIE QUOTE TESTIFIED RONALD GARZA A FORMER AGENT IN THE OFFICE ANOTHER AGENT OSWALDO SONNY COREA TESTIFIED THAT HIS MANAGER ENCOURAGED HIM TO BOOST COMMISSIONS BY CONVERTING TERM POLICIES TO WHOLE LIFE INCLUDING POLICIES OWNED BY HIS FATHER AND UNCLE MR. COREA SAID HE QUIT RATHER THAN AGREE TO CHEAT I DIDN'T WANT TO GET CAUGHT UP IN A SYSTEM WHERE I HAD TO DO ILLEGAL STUFF TO MEET MANAGEMENT REQUIREMENTS AND MANAGEMENT GOALS HE TESTIFIED HE ALSO SAID THAT WINDOWING WAS COMMONPLACE AND THAT HE SAW MR. HERRERA HOLD UP AUTHORIZATION FORMS AGAINST A WINDOW TO TRACE SIGNATURES MR. HERRERA WHO ADMITTED FORGERIES HAS LEFT NEW YORK LIFE MANAGEMENT MEMOS IN THE CORPUS CHRISTI OFFICE WRITTEN AFTER MR. DAWSON WAS REASSIGNED TO ANOTHER OFFICE BACK UP MUCH OF WHAT THE AGENTS ALLEGED ONE MEMO WARNED AGAINST WINDOWING IN THE PAST THIS OFFICE HAS HAD A VERY VERY LOOSE ATTITUDE REGARDING WINDOWING SIGNATURES ANOTHER CAUTIONED AGAINST UNAUTHORIZED CONVERSIONS OF TERM LIFE POLICIES INTO WHOLE LIFE ONE LAST TIME ON TERM CONVERSIONS WE HAVE TO BE CAREFUL THEY'RE WATCHING US QUOTE MR. DAWSON HIMSELF BECAME THE SUBJECT OF A NEW YORK LIFE INVESTIGATION INTO COMMISSION SWITCHING AT NEW YORK LIFE AND OTHER INSURERS GENERAL MANAGERS GET BONUSES BASED ON HOW MANY OF THEIR AGENTS REACH A CERTAIN SALES LEVEL IF ONE AGENT MADE THE LEVEL AND ANOTHER FELL SHORT ACCORDING TO WITNESSES IN THE HERRERA TRIAL MR. DAWSON WOULD ENCOURAGE THE MORE SUCCESSFUL AGENT TO BE A TEAM PLAYER AND SWITCH ENOUGH OF HIS COMMISSIONS TO THE OTHER AGENT SO BOTH COULD QUALIFY THE SUCCESSFUL AGENT WOULD BE REPAID IN THE FUTURE IN A DEPOSITION MR. DAWSON SAID HE ALLOWED COMMISSION SWITCHING ONLY FOR CLERICAL REASONS AND DENIED PRESSURING AGENTS TO CHEAT A LAWYER FOR HIM ASSERTS THAT THERE WAS NO CREDIBLE EVIDENCE AT THE HERRERA TRIAL LINKING RON DAWSON TO ANY UNETHICAL CONDUCT OR WRONGDOING JURORS WERE PLAINLY OUTRAGED BY WHAT THEY HEARD ALTHOUGH MR. HERRERA WAS A DEFENDANT IN THE CIVIL CASE THEY DIDN'T HOLD HIM FINANCIALLY LIABLE INSTEAD THEY HELD NEW YORK LIFE RESPONSIBLE FOR HIS ACTIONS THEY FOUND THAT IT HAD CHEATED MRS. HERNANDEZ AND ORDERED IT TO PAY HER SIXTY FIVE THOUSAND DOLLARS FOR ACTUAL DAMAGES ONE MILLION DOLLARS FOR MENTAL ANGUISH FIVE MILLION DOLLARS FOR LEGAL FEES AND FIFTEEN MILLION DOLLARS IN PUNITIVE DAMAGES A SUM THEY DEEMED JUST PUNISHMENT FOR A COMPANY WITH A NET WORTH OF TWO POINT SIX BILLION DOLLARS SINCE AGREEING TO SETTLE THE CASE BEFORE TAKING IT TO APPEAL NEW YORK LIFE HAS HELD SEMINARS AND SHOWED EMPLOYEES A VIDEOTAPE DESCRIBING THE HERRERA CASE TO MAKE SURE AGENTS FOLLOW ETHICAL PRACTICES AS FOR MRS. HERNANDEZ SHE BEGAN GETTING CALLS FROM LIFE INSURANCE AGENTS EVEN BEFORE THE TRIAL ENDED HER ATTORNEY SAYS THE AGENTS TOLD HER THAT SHE SHOULDN'T THINK BADLY OF THEM JUST BECAUSE ONE AGENT BURNED HER IN JUNE NINETEEN NINETY TWO RUSSIAN PRESIDENT BORIS YELTSIN AFTER A SOJOURN WITH GEORGE BUSH AT CAMP DAVID MET WITH CONGRESSIONAL LEADERS AT THE RUSSIAN EMBASSY AS HE WAS TALKING WITH DEMOCRATIC CONGRESSIONAL LEADERS THOMAS FOLEY AND GEORGE MITCHELL AND THEIR REPUBLICAN COUNTERPARTS BOB MICHEL AND BOB DOLE THE RUSSIAN LEADER NOTED ALMOST CASUALLY THAT QUOTE WE ARE ALL LOOKING FORWARD TO PRESIDENT BUSH'S RE ELECTION QUOTE NOT QUITE INTERRUPTED SPEAKER OF THE HOUSE FOLEY TELLING A SURPRISED BORIS YELTSIN THAT WHILE EVERYBODY LIKES GEORGE BUSH SOME NOT ONLY WEREN'T LOOKING FORWARD TO HIS RE ELECTION BUT DIDN'T THINK IT WOULD HAPPEN THE ANECDOTE IS OF LITTLE CONSEQUENCE EXCEPT TO SHOW HOW STUNNINGLY NAIVE MR. YELTSIN IS ABOUT AMERICAN POLITICS MORE SIGNIFICANT HOWEVER AS PRESIDENT CLINTON SITS DOWN FOR TALKS IN MOSCOW TODAY IS THAT IT JUST MAY BE THAT THE CLINTON ADMINISTRATION HAS BEEN SIMILARLY NAIVE ABOUT RUSSIAN POLITICS THE ADMINISTRATION CONSIDERS ITS RUSSIAN POLICY A SHINING SUCCESS IN A SEA OF FOREIGN POLICY PROBLEMS THE STRONG SHOWING OF NEO FASCISTS AND COMMUNISTS IN LAST MONTH'S PARLIAMENTARY ELECTIONS MAY HAVE SHOCKED THE CLINTONITES BUT IT DIDN'T CHANGE THEIR SELF CONGRATULATORY POSTURE THE CHIEF ARCHITECT OF THIS POLICY RUSSIA EXPERT AND FORMER TIME MAGAZINE EDITOR STROBE TALBOTT NEWLY DESIGNATED AS DEPUTY SECRETARY OF STATE HAS WON FAWNING REVIEWS FROM MOST OF HIS FORMER COLLEAGUES IN THE DIPLOMATIC PRESS CORPS YET THE ADMINISTRATION CLEARLY UNDERESTIMATED THE ECONOMIC DISASTER IN RUSSIA IT'S STILL UNSURE OF HOW TO SPEND MUCH OF THE THREE BILLION DOLLARS IT GOT CONGRESS TO APPROPRIATE FOR RUSSIAN AID LAST YEAR THE RUSSIANS SHAMEFULLY HAVE BEEN GIVEN A VETO OVER SOME SECURITY ARRANGEMENTS IN EASTERN EUROPE AND OUR POLICY RESTS ALMOST EXCLUSIVELY ON BORIS YELTSIN MOST OF THE ADMINISTRATION TALK ABOUT ECONOMIC PROGRESS THERE IS A MIRAGE IN A COUNTRY WITH NO MODERN HISTORY OF MARKETS IT'S NOT SURPRISING THAT WHEN YOU START ELIMINATING CENTRAL PLANNING WHAT YOU GET IS A BLACK NOT A FREE MARKET RUSSIA AS FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN NOTED IN A SPEECH EARLIER THIS YEAR LACKS THE RUDIMENTARY INSTITUTIONS MOST PROMINENTLY A LEGAL SYSTEM TO CONVERT TO A MARKET BASED SYSTEM MEANING THAT ANY TRANSITION IS LIKELY TO BE SIGNIFICANTLY STRETCHED OUT THE PHYSICAL INFRASTRUCTURE NOTES WELLESLEY COLLEGE RUSSIA EXPERT MARSHALL GOLDMAN IS DREADFUL MORE THAN SEVENTY PERCENT OF ALL RUSSIAN FACTORIES ARE MODELS OF INEFFICIENCY WITH WORK FORCES OF MORE THAN ONE THOUSAND EMPLOYEES THE PREDICTABLE RESULT IS RAMPANT INFLATION AND NEGATIVE GROWTH THE RUSSIANS THE LINE GOES ARE TERRIFIC AT CONVERTING STEEL INTO SCRAP ONE PROMINENT ECONOMIST AFTER SPENDING TIME IN RUSSIA CONCLUDED THERE'S ONE SOLUTION SEND ONE HUNDRED FIFTY MILLION PEOPLE AWAY FOR A FEW YEARS RAZE THE COUNTRY AND START FROM SCRATCH THIS MAKES THE DEBATE ABOUT ECONOMIC SHOCK THERAPY IN RUSSIA AFTER THE PARLIAMENTARY ELECTIONS MR. TALBOTT WAS SAID TO ADVOCATE MORE THERAPY AND LESS SHOCK A FALSE CHOICE THE ADVOCATES CITE POLAND AS A SUCCESS BUT POLAND HAS A HISTORY OF MARKETS MORE THAN THREE QUARTERS OF THE FARMS THERE NEVER WERE COLLECTIVIZED AND THERE WAS A SMALLER BUT NOT INSIGNIFICANT RETAIL MARKET THE THERAPY WITH LESS SHOCK PROPONENTS IGNORE THE EXAMPLE OF UKRAINE WHICH MAKES RUSSIA LOOK GOOD THUS THE INESCAPABLE CONCLUSION IS THAT ECONOMICALLY AS WELL AS POLITICALLY WHAT THE U. S. DOES WILL HAVE AT MOST A MARGINAL EFFECT WHICH RAISES QUESTIONS ABOUT WHY WE'RE POURING BILLIONS OF DOLLARS INTO THIS MESS MOST OF THE THREE BILLION DOLLARS APPROPRIATED IN NINETEEN NINETY THREE LIES IN LIMBO ONE PRELIMINARY PLAN CALLED FOR FIFTEEN PERCENT OF THE MONEY EARMARKED FOR MILITARY HOUSING RELOCATION TO BE SET ASIDE FOR LOCAL RUSSIAN HOUSING OFFICIALS CONGRESSIONAL EXPERTS POINTED OUT THAT THIS WOULD CONSTITUTE NOTHING MORE THAN A PAYOFF IN A TIGHT FISCAL CLIMATE AT HOME FEW AMERICANS WILL COTTON TO SPENDING MILLIONS OF THEIR TAX DOLLARS TO BRIBE CORRUPT RUSSIANS SIMILARLY THERE'S WIDESPREAD SPECULATION ABOUT HUGE RIPOFFS BY THE UBIQUITOUS CONSULTANTS THE SIMPLE FACT IS THAT RUSSIA IS AN ECONOMIC MIDGET ILL EQUIPPED TO RECEIVE LARGE AMOUNTS OF OUTSIDE AID TRADE IS A PRETTY DECENT MEASURE OF ECONOMIC STANDING AND THE U. S. HAS MORE COMMERCE WITH THIRTY EIGHT NATIONS RUSSIA RANKS BEHIND DENMARK AND SLIGHTLY AHEAD OF COSTA RICA WHILE STROBE TALBOTT PROCLAIMS RUSSIA AS OUR TOP FOREIGN POLICY PRIORITY BILL CLINTON SAYS ECONOMICS IS THE PRE EMINENT INTERNATIONAL ISSUE THERE'S A CONFLICT IT'S ALSO INCONGRUOUS THAT A COUNTRY SO ECONOMICALLY DECIMATED IS AN IMPERIALISTIC THREAT NOTWITHSTANDING ITS HISTORY FOR THE FORESEEABLE FUTURE RUSSIA MAY BE A NUISANCE SOMETIMES EVEN A DANGEROUS ONE TO ITS NEWLY INDEPENDENT IMMEDIATE NEIGHBORS BUT THE POSSIBLE RE EMERGENCE OF A SUPER POWER THREAT IS LUDICROUS SOMEDAY RUSSIA WITH CONSIDERABLE RESOURCES MAY BE AN IMPORTANT COUNTRY AGAIN BUT THAT HARDLY RESTS SOLELY ON BORIS YELTSIN'S SUCCESS AS THE ADMINISTRATION WOULD HAVE YOU BELIEVE THE RUSSIAN LEADER IS A BRAVE MAN HE THRIVES ON CRISES BUT HE SHOWS MUCH LESS TALENT FOR THE COALITION CRAFTING OR CONSTITUENCY BUILDING ESSENTIAL TO GOVERNANCE INDEED HE SEEMS MORE LIKE AMERICAN POLITICIANS WHO THRIVE ON RUNNING FOR OFFICE BUT ARE RESTLESS SERVING IT'S DICEY TO SO TOTALLY BASE POLICY ON THIS ONE MAN THERE STILL ARE IMPORTANT ISSUES THIS THIRD RATE COUNTRY HAS TWENTY FIVE THOUSAND NUCLEAR WEAPONS MR. TALBOTT AND TOP DEFENSE DEPARTMENT OFFICIALS DESERVE CREDIT FOR NEGOTIATING A NUCLEAR PACT WITH UKRAINE LET'S HOPE IT WILL STICK IT'S ESSENTIAL THAT FURTHER DISMANTLING AND DESTRUCTION OF NUCLEAR WEAPONS TAKE PLACE IN RUSSIA AND OTHER FORMER SOVIET STATES WE OUGHT TO GIVE WHATEVER MONEY IT TAKES TO FACILITATE THAT THE U.SS ALSO OUGHT TO REMOVE BARRIERS TO RUSSIAN EXPORTS AND HELP FUND AND LAUNCH NEW BUSINESSES AS OPPOSED TO TRYING TO PRIVATIZE BLOATED EXISTING STRUCTURES BUT WHEN PRESIDENT CLINTON AS HE DID THE OTHER DAY PREDICTS THAT RUSSIA IS ON THE WAY TO AGAIN BECOMING A VERY GREAT NATION IT'S A DELUSION IN THE SAME SESSION WITH COLUMNISTS THE PRESIDENT SUGGESTED THAT IT WOULD BE GOOD TO TAILOR THE ADMINISTRATION'S RUSSIAN POLICY TO A SLOGAN THAT WOULD FIT ON A BUMPER STICKER I THINK OUR SLOGAN WOULD BE THERE NEEDS TO BE MORE REFORM AND MORE SOCIAL SERVICE SUPPORT MORE ATTEMPTS TO BUILD A SAFETY NET TO DEAL WITH THE CONSEQUENCES OF REFORM BUT NOT AN ATTEMPT TO SLOW DOWN THE REFORM EFFORT THEN IF YOU SAID THERAPY THEN YOU'D HAVE ALL KINDS OF OTHER AMBIGUOUS THINGS YOU COULD GET IN THERE QUOTE THE PRESIDENT MAY NEED NOT ONLY A BETTER SLOGAN BUT A MORE REALISTIC POLICY TONIGHT PRESIDENT CLINTON IS EXPECTED TO GIVE A PROMINENT PLACE TO HIS HEALTH CARE REFORM IN THE STATE OF THE UNION MESSAGE THE DEBATE OVER HIS PLAN HAS BEEN DOMINATED BY POLICY WONKS WHO LIKE THE PRESIDENT HIMSELF ARE NEVER SO HAPPY AS WHEN THEY ARE PORING OVER THE DETAILS LOST IN ALL THIS HAS BEEN THE LARGE QUESTION OF WHETHER A MASSIVE TRANSFORMATION OF OUR HEALTH CARE SYSTEM IS NECESSARY THE IDEA THAT THERE IS A SEVERE HEALTH CARE CRISIS STEMS FROM FOUR SOURCES THE FIRST IS THE INSECURITY GENERATED BY THE MOST RECENT RECESSION MOST AMERICANS' HEALTH INSURANCE IS LINKED TO THEIR JOBS WITH EMPLOYERS PAYING ABOUT EIGHTY SIX PERCENT OF THE TOTAL COST LOSE YOUR JOB LOSE YOUR COVERAGE GET A NEW JOB AND YOU MIGHT NOT GET COVERAGE IF YOU HAVE A HEALTH PROBLEM THEN THERE IS THE CONCERN OVER COSTS ALREADY CLAIMING FOURTEEN PERCENT OF OUR GROSS NATIONAL PRODUCT A FIGURE HIGH BY INTERNATIONAL STANDARDS HEALTH CARE COSTS HAVE BEEN RISING MANY PEOPLE HAVE CONVINCED THEMSELVES THAT THIS WILL LEAD TO THE IMPOVERISHMENT OF AMERICA ADDITIONAL PRESSURE FOR REFORM COMES FROM THE NOTION THAT EVERYONE SHOULD HAVE HEALTH INSURANCE AS A MATTER OF RIGHT SINCE AT LEAST THIRTY SEVEN MILLION AMERICANS ARE NOW WIDELY SAID TO BE WITHOUT COVERAGE THE SYSTEM MUST BE FAILING THE FOURTH CONTRIBUTOR TO THE SENSE OF CRISIS IS THE LIBERAL BIAS OF THE MAJOR MEDIA THIS HELPS EXPLAIN ONE OF THE GREAT ANOMALIES IN THE DEBATE ALTHOUGH SEVENTY FIVE PERCENT OF AMERICANS HAVE BEEN CONVINCED THAT THERE IS A CRISIS EIGHTY PERCENT SIMULTANEOUSLY REPORT THEMSELVES AS QUOTE VERY QUOTE OR QUOTE SOMEWHAT QUOTE SATISFIED WITH THEIR OWN HEALTH CARE ALL THIS ADDS UP TO A GREAT POLITICAL OPPORTUNITY FOR THE DEMOCRATS TO WED THE MIDDLE CLASS TO THE PARTY IT NEEDS A MODERN VERSION OF ROOSEVELT'S SOCIAL SECURITY SYSTEM ENTER HEALTH CARE REFORM UNFORTUNATELY FOR THE PRESIDENT'S POLITICAL STRATEGISTS HOWEVER THE CRISIS ON WHICH THE CASE FOR THIS REFORM RESTS IS AN ARTIFICIAL ONE AND THE INTENDED BENEFICIARIES ARE ITS BIGGEST LOSERS TAKE THE MUCH HERALDED FOURTEEN PERCENT FIGURE THE APPROXIMATELY NINE HUNDRED FORTY BILLION DOLLARS AMERICANS SPENT ON HEALTH CARE IN NINETEEN NINETY THREE DID INDEED REPRESENT A BIT MORE THAN FOURTEEN PERCENT OF THE NATION'S TOTAL OUTPUT OF GOODS AND SERVICES BUT BY WHAT STANDARD IS THAT TOO MUCH IF WE PREFER TO DEVOTE A LARGER PORTION OF OUR INCOMES TO TOP QUALITY HEALTH CARE THAN DO OTHER NATIONS WHAT IS WRONG WITH THAT AFTER ALL WE DO NOT SETTLE FOR THE HOUSING STANDARDS THAT PREVAIL IN POORER COUNTRIES WE INSIST ON CENTRAL HEATING AND AIR CONDITIONING THE LATTER NOW INSTALLED IN NEARLY HALF OF THE HOMES OF EVEN THOSE WE CLASSIFY AS POOR NOR ARE TINY CARS WITH MECHANICAL CLUTCHES COMMON ELSEWHERE THE STUFF OF THE AMERICAN DREAM NEITHER IS SPARTAN HEALTH CARE INTERNATIONAL COMPARISONS ALSO GIVE NO WEIGHT TO DIFFERENCES IN THE QUALITY OF SERVICE THE CONGRESSIONAL QUARTERLY CITES THE FACT THAT JAPAN'S GOVERNMENT PLAYS A MUCH GREATER ROLE IN PRIVATE HEALTH CARE DELIVERY THAN DOES THE U. S. GOVERNMENT TO EXPLAIN HOW JAPAN KEEPS ITS COSTS CONSIDERABLY LOWER THAN THOSE OF THE U. S. NO MENTION OF WHAT FRED BARNES CALLS JAPANESE ASSEMBLY LINE TREATMENT FROM DOCTORS WHO SEE AN AVERAGE OF FORTY NINE PATIENTS A DAY AND WHO PERFORM GYNECOLOGICAL EXAMINATIONS ON SCORES OF WOMEN ASSEMBLED IN A SINGLE ROOM AS PHYSICIANS SCRAMBLE TO MAINTAIN INCOMES IN THE FACE OF TOO LOW PER CAPITA REIMBURSEMENTS BECAUSE PAYMENT IN JAPAN IS BASED ON PATIENT VISITS THE DOCTOR KEEPS THE AVERAGE LENGTH TO FIVE MINUTES AND THE JAPANESE ON AVERAGE MAKE TWELVE VISITS A YEAR OR ABOUT THREE TIMES AS MANY AS AMERICANS WHOSE AVERAGE VISIT LENGTH IS FIFTEEN TO TWENTY MINUTES THESE DECREASES IN CONVENIENCE FOR PATIENTS AND INCREASES IN PATIENT TIME AND TRAVEL COSTS POINTS OUT PATRICIA DANZON OF THE WHARTON SCHOOL ARE EXCLUDED FROM THE NATIONAL HEALTH ACCOUNTS AND FROM PUBLIC VISIBILITY INTERNATIONAL COST COMPARISONS ALSO IGNORE QUEUING AND OTHER FORMS OF RATIONING THAT REDUCE RECORDED COSTS BY FORCIBLY LIMITING THE AVAILABILITY OF THE SERVICE JOSEPH WHITE A BROOKINGS INSTITUTION RESEARCHER WHOSE COMPARISON OF AMERICA'S SYSTEM WITH THOSE OF SIX OTHER NATIONS LEADS HIM TO CONCLUDE THAT AMERICA'S HEALTH CARE SYSTEM MUST BE REFORMED NEVERTHELESS CONCEDES THAT OTHER COUNTRIES HAVE RESTRICTED CAPACITY AND FORCED PATIENTS TO ENDURE DELAYS THAT WOULD BE INTOLERABLE IN AMERICA AND GERMANY ACHIEVES ITS LOW COSTS BY LIMITING MALPRACTICE SUITS ESCHEWING EXTRAORDINARY LIFE PROLONGING MEASURES FOR THOSE JUDGED TO BE TERMINALLY ILL BUYING FEWER PIECES OF HIGH TECHNOLOGY EQUIPMENT THAN AMERICANS TYPICALLY USE AND BY PRICE CONTROLS EVEN SO COSTS ARE SOARING AND THE INSURANCE FUNDS ARE BROKE DESPITE PREMIUMS THAT COME TO THIRTEEN PERCENT OF PAYROLLS INTERNATIONAL COMPARISONS OMIT SOCIETAL ATTITUDES THE HIGH EXPENDITURES IN THE U. S. REFLECT A BASIC AMERICAN VALUE DAMN THE COSTS SAVE LIVES AND USE EXPENSIVE TECHNOLOGIES WHENEVER NECESSARY DON'T BLAME THIS ON YOUR DOCTOR EZEKIEL EMANUEL OF THE HARVARD MEDICAL SCHOOL NOTES THAT FEWER THAN ONE OUT OF TEN PHYSICIANS SURVEYED WOULD PUT GRANDMA ON A RESPIRATOR IF SHE HAD A STROKE WHEREAS FORTY PERCENT OF FAMILY MEMBERS WOULD HIGH HEALTH CARE COSTS IN AMERICA ALSO REFLECT ANOTHER DISTINCTIVE FEATURE OF OUR SOCIETY THE SOCIAL PATHOLOGY OF OUR UNDERCLASS PRESIDENT CLINTON POINTED THIS OUT IN OCTOBER TO AN ASSEMBLY OF DOCTORS AT JOHNS HOPKINS WE'LL NEVER GET THE COST OF HEALTH CARE DOWN TO WHERE IT IS IN OTHER COUNTRIES AS LONG AS WE HAVE HIGHER RATES OF TEEN PREGNANCIES AND HIGHER RATES OF LOW BIRTHWEIGHT BIRTHS AND HIGHER RATES OF AIDS AND MOST IMPORTANT OF ALL HIGHER RATES OF VIOLENCE AND HE MIGHT HAVE ADDED NOTHING IN HIS OWN HEALTH CARE PLAN ADDRESSES ANY OF THOSE PROBLEMS THE SECOND BASIS OF COMPARISON OFFERED TO SUPPORT THE CONTENTION THAT WE ARE SPENDING TOO MUCH ON HEALTH CARE IS OUR OWN PAST IN NINETEEN SIXTY WE DEVOTED FIVE PERCENT OF G. N. P. TO HEALTH CARE BY NINETEEN NINETY THREE WE WERE UP TO FOURTEEN PERCENT YET WE DO NOT COMPARE THE PRICE OF A MODERN AUTOMOBILE WITH THAT OF A MODEL T. AND THEN COMPLAIN ABOUT HOW MUCH MORE THE NEW CAR COSTS SO WHY IGNORE QUALITY CHANGES IN MEDICAL CARE AN OPERATION TO REMOVE CATARACTS ONCE INVOLVED A HOSPITAL STAY OF TWO TO FOUR DAYS AND AN EVEN LONGER RECUPERATIVE PERIOD AT HOME THAT SURGERY IS NOW TYPICALLY DONE ON AN OUTPATIENT BASIS AS IRA COHEN FORMERLY CHIEF OF THE DIVISION OF GENERAL MEDICINE AT NEW YORK CITY'S BETH ISRAEL HOSPITAL TELLS US IN THE DAYS WHEN THE ELECTROCARDIOGRAM WAS THE SOLE DIAGNOSTIC TOOL THE VICTIM OF A HEART ATTACK COULD COUNT ON A FOUR TO SIX WEEK HOSPITAL STAY NOW IMPROVED DIAGNOSTIC TECHNIQUES AND EQUIPMENT PERMIT THE DOCTOR TO DISCHARGE THE TYPICAL HEART PATIENT IN A WEEK OR TEN DAYS YET ASTONISHINGLY THE REDUCTIONS IN SUFFERING AND LOST OUTPUT NOWHERE APPEAR IN OUR ACCOUNTING OF TRENDS IN HEALTH CARE COSTS NOR CAN WE CREDIT THE PROJECTIONS THAT BRING US FROM FOURTEEN PERCENT TO TWENTY SIX PERCENT OF G. N. P. BY TWO THOUSAND THIRTY SUCH PROJECTIONS ASSUME THAT RECENT TRENDS IN HEALTH CARE PRICES AND IN THE VOLUME OF SERVICES CONSUMED WILL CONTINUE INDEFINITELY BUT THIS IS UNLIKELY THE HEALTH CARE INDUSTRY IS OFFERING AN UNPRECEDENTED RANGE OF NEW PRODUCTS THEY WILL GO THROUGH A CYCLE OF RAPID GROWTH FOLLOWED BY FALLING PRICES AND COSTS AS COMPETITION AMONG SUPPLIERS EMERGES CONSUMERS BECOME MORE DISCRIMINATING AND COST SAVING PRODUCTION AND APPLICATION TECHNIQUES ARE DEVELOPED IN ADDITION IF FACED WITH THE COSTS OF THEIR DECISIONS CONSUMERS MIGHT ADJUST REMEMBER THE ENERGY CRISIS IF THERE IS NO CRISIS IN HEALTH CARE COSTS IS THERE ONE IN INSURANCE COVERAGE HERE WE COME TO THE SECOND MAJOR STATISTIC DRIVING THE HEALTH CARE DEBATE AT SOME POINT IN NINETEEN NINETY ONE THE LAST YEAR FOR WHICH COMPREHENSIVE DATA ARE AVAILABLE THIRTY SEVEN MILLION PEOPLE LACKED MEDICAL INSURANCE IT SHOULD BE NOTED THAT THESE CITIZENS ARE NOT DENIED HEALTH CARE EMERGENCY ROOMS PROVIDE CARE TO ALL COMERS IN FACT NONPROFIT HOSPITALS EIGHTY EIGHT PERCENT PERCENT OF THOSE IN THE U. S. CANNOT LEGALLY TURN AWAY ANY PATIENT NEEDING MEDICAL CARE OR UNREASONABLY DENY ACCESS TO ALL THE MODERN TECHNOLOGY HOSPITALS HAVE AVAILABLE AND NOT JUST FOR THE DURATION OF THE EMERGENCY THE HOSPITAL IS OBLIGED TO SEE THE TREATMENT THROUGH PER CAPITA HEALTH CARE SPENDING ON THE UNINSURED PRE MEDICARE POPULATION IS ABOUT SIXTY PERCENT OF PER CAPITA EXPENDITURES ON THE INSURED POPULATION A LEVEL SUMPTUOUS BY THE STANDARDS OF OTHER INDUSTRIAL COUNTRIES NONETHELESS IF THE THIRTY SEVEN MILLION FIGURE DID MEAN WHAT IT IS OFTEN TAKEN TO MEAN THAT FIFTEEN PERCENT OF OUR POPULATION LIVES WITH THE UNNERVING AND CONTINUAL THREAT OF BEING UNABLE TO PAY FOR MEDICAL CARE THERE WOULD CERTAINLY BE GROUNDS FOR REVISING THE WAY WE PROVIDE MEDICAL SERVICES FORTUNATELY THERE IS LESS OF A PROBLEM HERE THAN MEETS THE EYE SOME OF THE UNINSURED ARE BETWEEN JOBS SOME ARE STUDENTS ENTERING THE LABOR MARKET KATHERINE SWARTZ OF THE HARVARD UNIVERSITY SCHOOL OF PUBLIC HEALTH NOTES THAT MOST ARE UNINSURED FOR ONLY A SHORT TIME THE CHRONICALLY UNINSURED GROUP IN OUR SOCIETY NUMBERS CLOSER TO FIVE POINT FIVE MILLION THAN THIRTY SEVEN MILLION PEOPLE AND PROBABLY FEWER THAN FIVE POINT FIVE MILLION ONLY ONE PERCENT OF THOSE UNDER AGE SIXTY FIVE ARE UNINSURABLE ACCORDING TO THE EMPLOYEE BENEFIT RESEARCH INSTITUTE MORE THAN HALF OF THE UNINSURED ARE IN FAMILIES HEADED BY FULLTIME WORKERS FORTY PERCENT HAVE INCOMES IN EXCESS OF TWENTY THOUSAND DOLLARS AND TEN PERCENT HAVE INCOMES IN EXCESS OF FIFTY THOUSAND DOLLARS ONLY TWENTY NINE PERCENT ARE BELOW THE POVERTY LEVEL AND THOSE WITH INCOMES BELOW TWENTY THOUSAND DOLLARS SPEND SEVERAL TIMES AS MUCH ON ENTERTAINMENT ALCOHOL AND TOBACCO AS THEY DO ON HEALTH CARE FURTHERMORE THIRTY SEVEN PERCENT OF THE UNINSURED ARE UNDER AGE TWENTY FIVE A GENERALLY HEALTHY GROUP FOR WHOM HEALTH INSURANCE IS OFTEN NOT A COST EFFECTIVE BUY IF WE PUT ALL THIS TOGETHER WE COME UP WITH A FIGURE OF PERHAPS THREE PERCENT OF THE POPULATION WHO ALTHOUGH ABLE TO OBTAIN HEALTH CARE CANNOT OBTAIN AFFORDABLE HEALTH INSURANCE SHOULD WE PERFORM RADICAL SURGERY ON OUR HEALTH CARE SYSTEM FOR THE SAKE OF THAT THREE PERCENT BEFORE ANSWERING WITH A RESOUNDING NO WE HAVE TO CONSIDER THE POSSIBILITY THAT WHEN THE UNINSURED ARE TREATED IN A HOSPITAL AND CANNOT PAY THE COST OF THAT TREATMENT IS LOADED ONTO THE REST OF US BUT EVEN IF CROSS SUBSIDIZATION FROM THE INSURED TO THE UNINSURED DOES OCCUR THE CURE IS SIMPLE SUBSIDIZE INSURANCE FOR THE TRULY POOR AND COMPEL PAYMENT BY THE VOLUNTARILY UNINSURED THERE ARE REFORMS THAT COULD AND SHOULD BE MADE WITHIN THE CONTEXT OF OUR PRESENT SYSTEM IN ADDITION TO SUBSIDIZING THE INVOLUNTARILY UNINSURED THE MOST IMPORTANT IS TO MAKE COVERAGE QUOTE PORTABLE QUOTE SO THAT THE LOSS OF A JOB DOES NOT DEPRIVE A WORKER OF HIS INSURANCE SUCH TWEAKS TO THE SYSTEM WOULD AVOID THE DISASTER IN STORE FOR US IF WE FOLLOW THE CLINTONS DOWN THE PATH TO A HEALTH CARE SYSTEM PRESIDED OVER BY THE SAME PEOPLE ALREADY DOING SUCH A WONDERFUL JOB DELIVERING OUR MAIL MR. STELZER IS DIRECTOR OF REGULATORY POLICY STUDIES AT THE AMERICAN ENTERPRISE INSTITUTE THIS ARTICLE IS ADAPTED FROM THE CURRENT ISSUE OF COMMENTARY THEY SAY EVERYTHING'S BIGGER IN TEXAS BUT TO LOOK AT THE LONG TERM RETURNS CHALKED UP BY TEXAS BASED MUTUAL FUNDS YOU WOULD SWEAR THIS WAS RHODE ISLAND FOR THE PAST FIVE AND TEN YEAR PERIODS MOST TEXAS EQUITY FUNDS UNDERPERFORMED THEIR NATIONAL PEER GROUPS ACCORDING TO AN ANALYSIS FOR TEXAS JOURNAL BY LIPPER ANALYTICAL SERVICES INCORPORATED A SUMMIT N. J. PUBLISHER OF MUTUAL FUND DATA WHATEVER THE CATEGORY FEW OF THE ROUGHLY EIGHTY FUNDS BASED HERE HAVE BEEN LONG TERM STANDOUTS AND IN MANY CASES THEIR PERFORMANCE HAS BEEN DOWNRIGHT PUNY CONSIDER AMERICAN CAPITAL ASSET MANAGEMENT INCORPORATED'S GROWTH AND INCOME FUND ALTHOUGH THE HOUSTON FUND'S AIM IS LONGTERM GROWTH ITS ONE HUNDRED NINETY PERCENT CUMULATIVE RETURN FOR THE DECADE ENDED DECEMBER THIRTY FIRST TRAILED ITS GROWTH FUND PEER GROUP BY ABOUT FIFTY PERCENTAGE POINTS HOUSTON BASED TEXAS COMMERCE BANCSHARES INCORPORATED'S BALANCED FUND HAS LOOKED SIMILARLY ANEMIC WITH FIVE YEAR RETURNS OF SIXTY SIX PERCENT COMPARED WITH EIGHTY EIGHT PERCENT FOR THE COMPARABLE LIPPER INDEX AND CAPSTONE ASSET MANAGEMENT INCORPORATED'S U. S. TREND FUND ALSO OUT OF HOUSTON TRAILED LIPPER'S GROWTH FUND INDEX BY MORE THAN FIFTY ONE POINTS FOR THE TEN YEAR PERIOD FOR TEXANS SUCH NUMBERS ARE MORE THAN A BLOW TO STATE PRIDE THEY'RE ALSO A BLOW TO THEIR WALLETS THAT'S BECAUSE ASIDE FROM A FEW NATIONALLY KNOWN MUTUAL FUNDS BASED HERE MOST TEXAS FUNDS GET THEIR MONEY FROM TEXANS SO WHY THE LACKLUSTER PERFORMANCE FOR STARTERS TEXAS HOSTS A LARGE NUMBER OF SMALL FUNDS WHOSE TINY ASSET BASES MEAN THEIR OVERHEAD IS RELATIVELY HIGH CUTTING INTO RETURNS SOME FUND MANAGERS ALSO SAY THEY DON'T AIM FOR THE FRONT OF THE PACK OPTING INSTEAD FOR LESS RISKY MORE STABLE INVESTMENTS AND CRITICS ARGUE THAT TEXAS FUNDS HAVE A HARD TIME ATTRACTING TOP RATE MONEY MANAGERS WHO INSTEAD GRAVITATE TOWARD MUTUAL FUND MECCAS IN NEW YORK BOSTON AND PHILADELPHIA QUOTE FOR WHATEVER REASONS THERE JUST HASN'T BEEN A LOT OF TALENT RUNNING TEXAS FUNDS QUOTE SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER IN CHICAGO THIS DOESN'T MEAN THAT ALL TEXAS EQUITY FUNDS HAVE BEEN ROTTEN PERFORMERS SOME HAVE FARED WELL AND MANY OTHERS ARE IMPROVING INDEED IF YOU LOOK AT NINETEEN NINETY THREE RETURNS ALONE THE PICTURE FOR TEXAS FUNDS IMPROVES SIGNIFICANTLY FOR EXAMPLE US GOLD SHARES A FUND MANAGED BY UNITED SERVICES ADVISORS INCORPORATED OF SAN ANTONIO WAS THE SECOND BEST FUND IN THE COUNTRY LAST YEAR WITH A ONE HUNDRED TWENTY FOUR PERCENT RETURN ACCORDING TO LIPPER BUT A YEAR DOESN'T A MUTUAL FUND STAR MAKE OVER THE FIVE YEAR PERIOD ENDED IN DECEMBER US GOLD SHARES RANKED AS THE SEVENTH WORST FUND IN THE COUNTRY WITH A TOTAL RETURN OF LESS THAN ONE PERCENT OVER TEN YEARS THE FUND WAS FOURTH FROM THE BOTTOM SURE THERE WAS AN EXTENDED BEAR MARKET IN GOLD BUT LIPPER'S GOLD INDEX STILL MANAGED A CUMULATIVE FORTY THREE PERCENT GAIN OVER THE FIVE YEAR PERIOD THUS FIVE AND TEN YEAR NUMBERS OFFER A MORE MEANINGFUL GLIMPSE OF FUND PERFORMANCE AN INDICATION OF HOW WELL MANAGERS BATTLED A CHANGING ECONOMY BOOMING AND BUSTING INDUSTRIES AND BOTH THE MINI BEAR MARKET OF NINETEEN NINETY AND THE OCTOBER NINETEEN EIGHTY SEVEN CRASH A KEY PROBLEM FOR TEXAS BASED FUNDS IS THAT MOST OF THEM HAVE LESS THAN TWO HUNDRED MILLION DOLLARS IN ASSETS AND MANY DON'T EVEN REACH TWENTY MILLION DOLLARS THOSE ARE RELATIVELY SMALL NUMBERS IN THE MUTUAL FUND GAME AND IT PRESENTS MANAGERS WITH A VARIETY OF CHALLENGES WHEN CONCORDE FINANCIAL CORPORATION OF DALLAS LAUNCHED ITS ONLY FUND VALUE FUND IN NINETEEN EIGHTY SEVEN IT COULDN'T FIND LOCAL EXPERTS IN FUND MARKETING OR CUSTODIAL AND LEGAL SERVICES SAYS ELIZABETH FOSTER ANALYST SLASH SECRETARY FOR THE FUND VALUE FUND A GROWTH AND INCOME FUND WITH TWELVE POINT SIX MILLION DOLLARS IN ASSETS HAD AN AVERAGE ANNUAL RETURN OF SEVEN POINT ONE PERCENT FOR THE FIVE YEARS ENDED IN DECEMBER NEARLY HALF THE THIRTEEN POINT THREE PERCENT PEER GROUP AVERAGE TEXAS IS BEHIND THE LEARNING CURVE AND THAT CERTAINLY MAKES IT MORE DIFFICULT FOR US MS. FOSTER SAYS THE RESULT IS THAT SMALL OUTFITS SUCH AS CONCORDE OR HERBERT R. SMITH INCORPORATED WHICH RUNS THE AVONDALE TOTAL RETURN FUND OUT OF WICHITA FALLS CAN'T SPREAD OVERHEAD AMONG SEVERAL FUNDS AND THEY CONTRACT OUT FOR MUCH IF NOT ALL OF THEIR BACK OFFICE NEEDS IN THE CASE OF AVONDALE A BALANCED FUND WITH JUST EIGHT MILLION DOLLARS IN ASSETS AND ABOUT ONE HUNDRED THIRTY SHAREHOLDERS THE EXPENSES OF RUNNING THE FUND APPROACH ONE POINT EIGHT PERCENT MORE THAN DOUBLE THE AVERAGE FOR LARGE BALANCED FUNDS AND IT USED TO BE MUCH WORSE AVONDALE WHICH RETURNED ABOUT EIGHT POINT EIGHT PERCENT ANNUALLY OVER THE PAST FIVE YEARS COMPARED WITH THIRTEEN POINT FOUR PERCENT FOR LIPPER'S BALANCED FUND INDEX HAS TRIMMED ITS COSTS TWENTY FIVE PERCENT IN RECENT YEARS BY LINKING UP WITH PROFESSIONALLY MANAGED PORTFOLIOS A NEW YORK UMBRELLA GROUP OF SMALL FUNDS THAT NEGOTIATES FOR REDUCED RATES FOR PRINTING ACCOUNTING LEGAL AND OTHER SERVICES ANOTHER HANDICAP FOR THE SMALL TEXAS FUNDS NO DEPTH WITH SMALL FUNDS INVESTORS ARE BUYING ONE PERSON NOT A RESEARCH TEAM SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER IN CHICAGO WHILE LARGER FUND COMPANIES SUCH AS SAN ANTONIO'S U. S. A. A. INVESTMENT MANAGEMENT INCORPORATED EMPLOY A DOZEN OR MORE EQUITY RESEARCH ANALYSTS SMALL FUNDS CAN'T AFFORD SUCH A LUXURY AS SUCH RETURNS CAN SUFFER SIMPLY BECAUSE PORTFOLIO MANAGERS DON'T HAVE TIME TO ANALYZE AS MANY OPTIONS SAYS MR. PERRITT THE NEWSLETTER EDITOR SAYS HERBERT SMITH WHO NOT ONLY HEADS UP HIS EPONYMOUS MONEY MANAGEMENT FIRM BUT ALSO SERVES AS AVONDALE'S PORTFOLIO MANAGER AND ITS FUNDAMENTAL AND TECHNICAL ANALYST YOU'RE TALKING TO THE RESEARCH DEPARTMENT BUT SIZE DOESN'T ENTIRELY EXPLAIN TEXAS' DISMAL MUTUAL FUND RECORD SOME OF THE BIGGEST AND BEST KNOWN TEXAS MUTUAL FUNDS HAVE FARED POORLY AS WELL FOR INSTANCE GIANT AMERICAN CAPITAL WHOSE NINE EQUITY FUNDS MANAGE MORE THAN NINE POINT FIVE BILLION DOLLARS COULD ONLY MUSTER ONE FUND THAT BEAT ITS LIPPER BENCHMARK IN THE PAST DECADE THAT FUND EMERGING GROWTH A FUND WHICH BEAT THE MARKET AVERAGE BY FOURTEEN POINT TWO PERCENTAGE POINTS ALAN SACHTLEBEN AMERICAN CAPITAL'S CHIEF INVESTMENT OFFICER FOR EQUITIES SAYS THE COMPANY'S UNDERPERFORMANCE IS PARTLY DUE TO ITS CONSERVATIVE PHILOSOPHY QUOTE WE DON'T WANT TO SHOOT THE LIGHTS OUT ONE YEAR ONLY TO RISK FALLING ON OUR FACE THE NEXT YEAR QUOTE HE SAYS YOU LOSE SHAREHOLDERS IN THE WHIPSAW PERHAPS BUT MR. SACHTLEBEN ALSO CONCEDES THAT AMERICAN CAPITAL WISHES IT HAD SHOT OUT A FEW MORE LIGHTS THAN IT DID AND HE SAYS IT IS DETERMINED TO TURN THINGS AROUND ONE BRIGHT SPOT AMERICAN CAPITAL'S EQUITY INCOME A FUND FOR THE FIVE YEARS THROUGH NINETEEN EIGHTY EIGHT EQUITY INCOME TYPICALLY SAT IN THE BOTTOM HALF OF MORNINGSTAR'S PERFORMANCE QUARTILE RANKINGS THE FUND ROUTINELY HELD LARGE BETS IN A SINGLE SECTOR A TYPICAL INVESTMENT A FOUR POINT FIVE PERCENT STAKE IN MANUFACTURERS HANOVER CORPORATION COUPLED WITH A FOUR PERCENT STAKE IN CHEMICAL BANKING CORPORATION AS A RESULT POOR ECONOMIC NEWS OR THE CRASH OF A STOCK WITHIN A SECTOR COULD AND DID DRAG DOWN LARGE CHUNKS OF THE PORTFOLIO SO IN NINETEEN NINETY THE COMPANY NAMED JAMES GILLIGAN A SECURITIES ANALYST WITH NINE YEARS EXPERIENCE AT AMERICAN CAPITAL AS HEAD OF THE FUND THE THIRTY FIVE YEAR OLD MR. GILLIGAN SPENT HIS FIRST FEW WEEKS TURNING OVER ONE THIRD OF THE PORTFOLIO MOVING OUT OF LARGE FINANCIAL AND UTILITY SECTOR BETS AND TOWARD A MORE DIVERSIFIED AND LESS CONCENTRATED PORTFOLIO OF CONSUMER AND HEALTH CARE STOCKS INCLUDING MCDONALD'S CORPORATION SARA LEE CORPORATION AND HUMANA INCORPORATED UNDER HIS COMMAND EQUITY INCOME'S PERFORMANCE NEVER HAS SLIPPED BELOW MORNINGSTAR'S SECOND QUARTILE AND OVER THE FIVE YEARS ENDED IN DECEMBER THE FUND BEAT ITS LIPPER INDEX BY NEARLY ELEVEN PERCENTAGE POINTS GOOD SERVICE BUT U. S. A. A. INVESTMENT MANAGEMENT COMPANY WITH THREE POINT FIVE BILLION DOLLARS IN EQUITY ASSETS ALSO HAS GRAPPLED WITH ITS SHARE OF LAGGARD FUNDS TO BE SURE THE COMPANY HAS LONG CULTIVATED A REPUTATION FOR HAVING GOOD SERVICE AND SOME OF THE INDUSTRY'S LOWEST EXPENSE RATIOS WHICH EASE SOME OF THE PRESSURE TO PRODUCE STELLAR RETURNS BUT IN RECENT YEARS THE PERFORMANCE OF SOME FUNDS HAS DETERIORATED EVEN BY U. S. A. A.'S STANDARDS U. S. A. A.'S GOLD AGGRESSIVE GROWTH AND CORNERSTONE OFFERINGS ALL TRAILED THEIR RESPECTIVE BENCHMARK INDEXES BY DOUBLE DIGIT PERCENTAGE POINTS FOR THE FIVE YEARS ENDED IN DECEMBER THROUGH TEN YEARS THE COMPANY'S GROWTH FUND TRAILED THE BENCHMARK BY SEVENTY PERCENTAGE POINTS WITH TWENTY TWENTY THS HINDSIGHT WE CAN SAY THAT WE WERE INVESTED IN THE WRONG STOCKS IN THE WRONG INDUSTRIES SAYS MICHAEL ROTH PRESIDENT OF THE COMPANY'S MUTUAL FUND ARM AN EXAMPLE THE COMPANY'S MUTUAL AGGRESSIVE GROWTH FUND'S THIRTY EIGHT PERCENT STAKE IN HEALTH CARE STOCKS IN NINETEEN NINETY ONE THOUGH THAT PROVED BENEFICIAL THAT YEAR THE FUND HELD ON FOR THE ROUND TRIP WHEN THOSE STOCKS BURNED IN NINETEEN NINETY TWO TO BREAK WITH THE PAST U. S. A. A. PLACED BILL FRIES WHO HAS BEEN WITH U. S. A. A. AS A STOCK PICKER AND ANALYST FOR NINETEEN YEARS IN CHARGE OF MUTUAL AGGRESSIVE ON JANUARY FIRST IN HIS FIRST FEW WEEKS HE HAS COMPILED A LIST OF VALUE ORIENTED AND CYCLICAL STOCKS ABOUT A THIRD OF THE PORTFOLIO THAT WILL SUPPLY THE CASH NEEDED TO BRING A GROWTH BENT TO THE FUND WE'RE GOING TO TURN THIS FUND AROUND MR. FRIES SAYS HERE'S A LOOK AT THE RETURNS ON SELECTED TEXAS BASED MUTUAL FUNDS FOR THE FIVE AND TEN YEARS ENDED IN DECEMBER THE RETURNS ARE COMPARED WITH LIPPER ANALYTICAL SERVICES INCORPORATED'S INDEXES FOR FUNDS WITH SIMILAR INVESTMENT OBJECTIVES MAYBE THE RESUME SHOULD GO THE WAY OF THE DINOSAUR QUOTE TO ME A RESUME IS A DESELECTION DEVICE QUOTE SAYS DENNIS LUNDER WHO AS HEAD OF MARKETING COMMUNICATIONS AT AMERICAN GREETINGS CORPORATION IN CLEVELAND MANAGES ABOUT EIGHTY PEOPLE MY METHOD IS RADICALLY DIFFERENT IN SIX JOB HUNTS OVER NEARLY THIRTY YEARS MR. LUNDER SAYS HE SENT OUT THOUSANDS OF RESUMES AT A TIME WITH LITTLE EFFECT NOW AS A MENTOR IN HUDSON JOB SEARCH A VOLUNTEER PROGRAM IN OHIO FOR UNEMPLOYED EXECUTIVES MR. LUNDER PREACHES THIS GOSPEL TREAT YOUR SEARCH AS FULL TIME WORK EACH WEEKDAY SHOULD BE STRUCTURED AS A WORKDAY WITH A SCHEDULE OF EVENTS COMPILE A LIST OF THE TWENTY COMPANIES YOU WOULD MOST LIKE TO WORK FOR AND THEN RESEARCH THEM CALL THE SECRETARY OF THE EXECUTIVE WHO IS MOST LIKELY TO HIRE YOU AND ASK FOR THE ANNUAL REPORT AND OTHER CORPORATE MATERIALS KEEP RESEARCHING MR. LUNDER WENT TO STORES THAT SOLD AMERICAN GREETINGS CARDS AND PRODUCTS ASKING THE STORE MANAGER HOW IS THE SERVICE ARE YOU HAPPY WITH AMERICAN GREETINGS PRODUCTS HOW CAN THINGS BE IMPROVED HE ALSO RECEIVED PERMISSION TO ACCOMPANY A SALES REP FOR A DAY WRITE A ONE PAGE PERSONAL MARKETING LETTER SELLING YOURSELF TO THE PERSON WHO IS HIRING WHICH ISN'T NECESSARILY THE COMPANY'S HUMAN RESOURCES EXECUTIVE EXPLAIN WHAT YOU HAVE LEARNED INCLUDING SOME FLATTERING COMMENTS ON THE COMPANY'S INNOVATIONS AND HOW YOU WOULD FIT IN ENCLOSING A RESUME IS A ONE WAY TICKET TO THE PERSONNEL DEPARTMENT IF ASKED FOR A RESUME TELL THEM YOU NEED A WEEK TO UPDATE IT THEN TRY TO FOCUS ON ASPECTS OF YOUR CAREER THAT FIT WHAT THE COMPANY IS LOOKING FOR TRY TO SET UP A TWENTY MINUTE INFORMATIONAL MEETING WITH THE HIRING PERSON DON'T CALL IT AN INTERVIEW IF YOU GET THE PERSON'S VOICE MAIL SUGGEST A TIME LIKE SEVEN A. M. TOMORROW TELL THE HIRING PERSON WHAT YOU KNOW AND ADMIRE ABOUT THE COMPANY AND ABOUT YOUR SKILLS HAVE FIVE SMART QUESTIONS ON THE COMPANY'S STRATEGY ONLY AT THE END OF THE MEETING SUGGEST YOU ARE LOOKING FOR WORK MR. LUNDER ADVISES LISTENING TO MOTIVATIONAL TAPES TO KEEP SPIRITS AND ENERGY HIGH AND CHECKING WHETHER YOUR TARGET HAS MORE JOB CUTS IN ITS FUTURE YOU WOULDN'T WANT TO HAVE TO DO THIS AGAIN JAMES A. KOFALT FIFTY ONE YEARS OLD RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER OF THIS CABLE TELEVISION OPERATOR EFFECTIVE FEBRUARY TWENTY EIGHTH A SUCCESSOR HASN'T BEEN NAMED MR. KOFALT WAS WITH THE COMPANY SEVENTEEN YEARS AND SAID HE WILL EXPLORE NEW OPPORTUNITIES DESPITE PROTESTS FROM THE WHITE HOUSE THE CONGRESSIONAL BUDGET OFFICE IS EXPECTED TO RECOMMEND TODAY THAT PRESIDENT CLINTON'S HEALTH CARE PLAN BE COUNTED AS PART OF THE FEDERAL BUDGET CONGRESSIONAL AND ADMINISTRATION OFFICIALS SAID THE C. B. O. WOULDN'T COMMENT BUT THE WHITE HOUSE STUNG LAST WEEK BY CRITICISM OF ITS PLAN FROM BUSINESS GROUPS BRACED FOR MORE POLITICAL FALLOUT FROM THE ANTICIPATED C. B. O. DECISION AND REPUBLICANS SEIZED ON THE EXPECTED DEVELOPMENT AS FURTHER EVIDENCE THAT THE PROPOSAL IS IN TROUBLE QUOTE THIS IS A REAL BODY BLOW QUOTE SAID REPRESENTATIVE JOHN KASICH R. OHIO RANKING REPUBLICAN ON THE HOUSE BUDGET COMMITTEE THE EXPECTED DECISION WAS FIRST REPORTED BY U. S. A. TODAY THE ULTIMATE IMPACT OF THE C. B. O.'S RECOMMENDATION WHICH DIRECTOR ROBERT REISCHAUER IS EXPECTED TO DISCLOSE IN TESTIMONY BEFORE THE HOUSE WAYS AND MEANS COMMITTEE ISN'T CLEAR TREATING THE HEALTH CARE PLAN AS PART OF THE BUDGET COULD MEAN THAT SPENDING ON INSURANCE POLICIES BY FEDERALLY ESTABLISHED HEALTH ALLIANCES WOULD BE COUNTED AS FEDERAL OUTLAYS AND PREMIUMS THEY COLLECT FROM EMPLOYERS AND INDIVIDUALS WOULD BE COUNTED AS RECEIPTS THE ADMINISTRATION INSISTS THAT THE PLAN OVERALL WOULDN'T EXPAND THE DEFICIT IN THE SHORT RUN AND WOULD NARROW IT IN THE LONG RUN WHAT REPUBLICANS WANT MOST DEARLY IS FOR MR. REISCHAUER TO LABEL MANDATED INSURANCE PREMIUMS WHICH WOULD RUN UP TO SEVEN POINT NINE PERCENT OF PAYROLL FOR LARGE BUSINESSES AS TAXES MR. REISCHAUER ISN'T EXPECTED TO GO THAT FAR HOWEVER IF THE C. B. O. DEFINES THE PREMIUMS AS SOMETHING ELSE MEDICARE PREMIUMS FOR EXAMPLE ARE NOW CLASSIFIED SIMPLY AS RECEIPTS TO OFFSET GOVERNMENT HEALTH SPENDING THE G. O. P. ARGUMENT WOULD BECOME MORE COMPLICATED THE C. B. O. ONLY MAKES RECOMMENDATIONS TO CONGRESS AND ITS ANALYSES TURN ON TECHNICAL FACTORS IMPENETRABLE TO MOST LAWMAKERS NOT TO MENTION ORDINARY AMERICANS BUT MR. CLINTON HIMSELF HAS ENHANCED THE C. B. O.'S INFLUENCE BY CITING IT AS AN IMPARTIAL ARBITER OF FISCAL DISPUTES HOPING TO BLUNT BAD NEWS ADMINISTRATION OFFICIALS AND CONGRESSIONAL DEMOCRATS SAID THEY EXPECT THE C. B. O. TO BUTTRESS THE PRESIDENT'S ESTIMATES OF HIS PLAN'S FINANCIAL IMPACT IN ADDITION MR. CLINTON'S ALLIES ON CAPITOL HILL DISMISSED THE DEVELOPMENT AS A SHORT TERM PUBLIC RELATIONS COUP FOR THE G. O. P. THAT WILL QUICKLY FADE REPUBLICANS ARE GOING TO MAKE HAY FOR TWENTY FOUR HOURS AND THEN IT ISN'T GOING TO MATTER SAID ONE DEMOCRATIC LEADERSHIP AIDE WHITE HOUSE OFFICIALS FOR THEIR PART SAID THEY WILL CONTINUE TO FOCUS ON THE PURPOSE OF THE SO CALLED EMPLOYER MANDATE TO GUARANTEE HEALTH COVERAGE FOR ALL AMERICANS AND NOT THE TECHNICAL ACCOUNTING OF IT THIS DEBATE SHOULD BE ABOUT PROVIDING EVERY AMERICAN WITH GUARANTEED PRIVATE HEALTH INSURANCE THAT CAN NEVER BE TAKEN AWAY SAID WHITE HOUSE SPOKESMAN ROBERT BOORSTIN WE DON'T WANT TO BE TRAPPED BY SCORE KEEPING ISSUES WHEN THE HEALTH OF THE AMERICAN PEOPLE IS AT STAKE STILL THE ANTICIPATED C. B. O. DECISION IS YET ANOTHER BLOW TO A WHITE HOUSE PLAN THAT WAS BATTERED LAST WEEK BY THE BUSINESS ROUNDTABLE THE U. S. CHAMBER OF COMMERCE AND THE NATIONAL ASSOCIATION OF MANUFACTURERS IT MAY FURTHER ENHANCE THE ATTRACTIVENESS OF AN ALTERNATIVE OFFERED BY REPRESENTATIVE JIM COOPER D. TENNESSEE WHICH WOULDN'T IMPOSE INSURANCE PREMIUMS ON EMPLOYERS BUT LIBERALS MAY EMBRACE THE ANALYSIS AS A STEP TOWARD ERASING THE DISTINCTION BETWEEN MR. CLINTON'S PLAN FOR GUARANTEED PRIVATE INSURANCE AND A GOVERNMENT RUN SINGLE PAYER ALTERNATIVE QUOTE IF THEY SAY IT'S ON BUDGET THE ADMINISTRATION WILL BE UNHAPPY BECAUSE THEY ARE TRYING TO SAY THIS IS NOT A BIG GOVERNMENT PROGRAM AND IS ALL FREE ENTERPRISE QUOTE SAID REPRESENTATIVE FORTNEY QUOTE PETE QUOTE STARK D. CALIFORNIA WHO HEADS A KEY HEALTH SUBCOMMITTEE WITH THE C. B. O. ANALYSIS BEHIND THEM MR. STARK ADDED LAWMAKERS CAN MOVE BEYOND TECHNICAL ANALYSIS AND WRITE A BILL THE SECURITIES AND EXCHANGE COMMISSION EXTENDED THE PUBLIC COMMENT PERIOD ON A CONTROVERSIAL PROPOSAL DESIGNED TO SEVER LINKS BETWEEN MUNICIPAL BOND DEALERS' POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS AND THE AWARDING OF BOND BUSINESS THE NEW MARCH ELEVENTH DEADLINE REPRESENTS A ONE MONTH EXTENSION FOR COMMENT ON THE MUNICIPAL SECURITIES RULEMAKING BOARD'S PROPOSAL TO END THE QUOTE PAY TO PLAY QUOTE PRACTICE IT ALSO REPRESENTS REGULATORS' RECOGNITION THAT THE PROPOSAL IS GENERATING STRONG AND GROWING OPPOSITION AMONG STATE AND LOCAL OFFICIALS SEVERAL GROUPS INCLUDING THE GOVERNMENT FINANCE OFFICERS ASSOCIATION AND NATIONAL LEAGUE OF CITIES COMPLAINED THAT THE FEBRUARY ELEVENTH DEADLINE FOR COMMENTS SET BY THE S. E. C. DIDN'T PROVIDE ENOUGH TIME TO ASSESS THE PLAN THE EXTENSION WAS REQUESTED BY THE RULEMAKING BOARD A SELF REGULATORY BODY SUBJECT TO S. E. C. OVERSIGHT AND WAS APPROVED BY THE S. E. C. SEPARATELY THE LEAGUE CHALLENGED THE S. E. C. TO DOCUMENT THE NEED FOR THE PROPOSED RULE WHICH WOULD BAR DEALERS FROM DOING BUSINESS WITH A BOND ISSUER WITHIN TWO YEARS OF EITHER THE DEALER ITS POLITICAL ACTION COMMITTEE OR ITS MUNICIPAL FINANCE PROFESSIONALS MAKING A POLITICAL GIFT TO AN ISSUER OFFICIAL THIS ENERGY AND NATURAL RESOURCES CONCERN NAMED JOHN W. KENNEDY PRESIDENT OF ITS NEW LONDON BASED UNIT MR. KENNEDY FORTY THREE YEARS OLD WILL HEAD THE DRESSER ENGINEERED DRILLING SERVICES DIVISION WHICH WILL COORDINATE THE COMPANY'S EFFORTS TO PROVIDE CUSTOMERS WITH EFFICIENT DRILLING PROGRAMS MR. KENNEDY WAS FORMERLY PRESIDENT OF ATLAS WIRELINE A UNIT OF WESTERN ATLAS INTERNATIONAL INCORPORATED UNTIL DRESSER SOLD ITS INTEREST IN THE OIL SERVICES VENTURE TO THE MAJORITY OWNER LITTON INDUSTRIES INCORPORATED DRESSER ALSO PROMOTED JAMES L. BRYAN FIFTY SEVEN TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT OPERATIONS FROM VICE PRESIDENT OPERATIONS OF THE COMPANY'S OILFIELD SERVICES SEGMENT JIM W. DAWSON FIFTY NINE YEARS OLD PRESIDENT OF THE COMPANY'S ZEBCO SLASH MOTORGUIDE DIVISION IN TULSA OKLAHOMA WAS NAMED TO THE ADDITIONAL POST OF VICE PRESIDENT OF THIS MAKER OF MARINE PLEASURE BOATING AND RECREATIONAL PRODUCTS PAUL G. STERN WAS NAMED A DIRECTOR OF THIS SUPPLIER OF EQUIPMENT TO THE CABLE TELEVISION INDUSTRY INCREASING BOARD MEMBERSHIP TO THIRTEEN DOCTOR STERN FIFTY FIVE YEARS OLD IS A SPECIAL LIMITED PARTNER OF FORSTMANN LITTLE AND COMPANY AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NORTHERN TELECOM LIMITED ASTROTECH INTERNATIONAL CORPORATION AGREED TO ACQUIRE CLOSELY HELD BROWN MINNEAPOLIS TANK AND FABRICATING COMPANY SAINT PAUL MINNESOTA FOR ABOUT SEVENTEEN MILLION DOLLARS IN CASH AND STOCK CONTINGENT ON ASTROTECH OBTAINING THE NECESSARY FINANCING VENCOR INCORPORATED ACQUIRED CLOSELY HELD CANDLE SUBACUTE SERVICES INCORPORATED IRVINE CALIFORNIA TERMS WEREN'T DISCLOSED CONAGRA INCORPORATED AND CARLBERG A SLASH S. OF COPENHAGEN WILL FORM A COMPANY TO BUILD AND OPERATE A BARLEY MALTING PLANT IN DENMARK TOTAL INVESTMENT IN THE PLANT WILL BE TWENTY NINE MILLION DOLLARS GENERAL MOTORS CORPORATION'S DELCO CHASSIS DIVISION COMPLETED THE SALE OF ITS AUTOMOTIVE ELECTRICAL PRODUCTS OPERATIONS AT DUNSTABLE BEDFORDSHIRE U. K. TO AUTOMOTIVE COMPONENTS DUNSTABLE LIMITED INGLES MARKETS INCORPORATED WILL SPEND BETWEEN FORTY MILLION DOLLARS AND FIFTY MILLION DOLLARS TO OPEN EIGHT TO TEN NEW SUPERMARKETS AND REMODEL EXISTING PROPERTIES IN THE CURRENT FISCAL YEAR NORWICK GOODSPEED FORTY FOUR YEARS OLD WAS NAMED CHIEF EXECUTIVE OF THIS PROVIDER OF THE FOURTH THERAPY PRODUCTS AND SERVICES TO HOSPITALS MR. GOODSPEED WHO IS ALSO PRESIDENT SUCCEEDS JAMES M. SWEENEY FIFTY ONE WHO RESIGNED IN ANTICIPATION OF MCGAW'S MERGER WITH IVAX CORPORATION A MIAMI SPECIALTY CHEMICAL AND PHARMACEUTICAL CONCERN LARRY G. PETERSEN FORTY SEVEN YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS SUNGLASS RETAILER MR. PETERSEN HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CARTER HAWLEY HALE STORES HE SUCCEEDS ACTING CHIEF FINANCIAL OFFICER JIM HAUSLEIN WHO REMAINS CHAIRMAN OF THE COMPANY ROBERT W. TRAINER FORTY FOUR YEARS OLD AND SENIOR VICE PRESIDENT OF THIS INSURANCE COMPANY WAS NAMED TO THE ADDED POSTS OF CHIEF FINANCIAL OFFICER AND TREASURER EFFECTIVE JANUARY TWENTY EIGHTH HE SUCCEEDED KEITH S. HYNES FORTY ONE WHO LEFT THE COMPANY ON THAT DATE MR. HYNES SAID THE COMPANY'S NEW PRESIDENT GORDON KREH QUOTE IS BUILDING A NEW MANAGEMENT TEAM AND HE DID NOT SEE ME ON HIS MANAGEMENT TEAM QUOTE HE WOULDN'T COMMENT FURTHER MR. KREH WAS NAMED PRESIDENT IN SEPTEMBER WORKERS AT CUMMINS ENGINE COMPANY'S MAIN PLANT HERE DON'T HAVE TO WORRY ABOUT NEGOTIATING A NEW LABOR CONTRACT BY THE TIME THEIR PACT WITH THE DIESEL ENGINE MAKER EXPIRES IN THE YEAR TWO THOUSAND FOUR ALL ONE THOUSAND EIGHT HUNDRED OF THEM WILL BE ELIGIBLE TO RETIRE QUOTE WE DIDN'T WANT PEOPLE LAID OFF IN THE PAST TO GET LAID OFF AGAIN QUOTE SAYS LARRY NEIHART THE UNION PRESIDENT WHO HELPED NEGOTIATE LAST YEAR'S ELEVEN YEAR CONTRACT WITH CUMMINS IN RETURN FOR JOB SECURITY AND HIGHER PENSIONS FOR ABOUT THREE THOUSAND WORKERS AT SIX INDIANA PLANTS THE DIESEL WORKERS UNION MADE CONCESSIONS ON HEALTH CARE AND GRANTED YEARS OF LABOR PEACE MOST NEW LABOR CONTRACTS STILL EXPIRE IN THIS CENTURY WITH THREE YEARS THE MOST COMMON DURATION BUT A GROWING NUMBER OF UNIONS AND EMPLOYERS ARE FINDING THAT STEADY LOW INFLATION MAKES IT EASIER TO AGREE TO LONGER CONTRACTS BECAUSE IT MAKES COSTS FOR COMPANIES AND LIVING EXPENSES FOR WORKERS MORE PREDICTABLE FIVE YEAR AGREEMENTS AT TWO WHIRLPOOL CORPORATION PLANTS SHOW A HIGHER LEVEL OF TRUST MAINTAINS WILLIAM MAROHN PRESIDENT AND CHIEF OPERATING OFFICER OF THE BENTON HARBOR MICHIGAN APPLIANCE MAKER THESE CONTRACTS ALSO INDICATE THE REALITY OF GLOBAL COMPETITION AND THE REDUCED CLOUT OF LABOR WITH FOREIGN COMPETITORS READY TO STEP IN MANY COMPANIES SAY THEY CAN'T AFFORD TO GRANT BIG WAGE INCREASES OR COSTLY NEW BENEFITS FOR UNIONS THERE'S LESS INCENTIVE FOR A QUICK RETURN TO THE BARGAINING TABLE IF THEY CAN'T EASILY COME AWAY WITH ECONOMIC GAINS THE LABOR DEPARTMENT SAID RECENTLY THAT THE AVERAGE CONTRACT NEGOTIATED IN NINETEEN NINETY THREE WAS FOR THIRTY FIVE POINT EIGHT MONTHS THE HIGHEST SINCE THE DEPARTMENT BEGAN KEEPING SUCH FIGURES IN NINETEEN SEVENTY TWO THE STATISTICS MOST LIKELY UNDERSTATE CONTRACT DURATION THE LABOR DEPARTMENT FOR EXAMPLE COUNTS RECENT SIX YEAR AGREEMENTS IN THE STEEL INDUSTRY AS THREE YEARS BECAUSE WAGES ARE OPEN FOR NEGOTIATION HALFWAY THROUGH THE CONTRACT BUT THE WORKERS CAN'T STRIKE AND DIFFERENCES ARE TO BE SETTLED THROUGH BINDING ARBITRATION IT ALL RELATES TO JOB SECURITY SAYS GARY HUBBARD SPOKESMAN FOR THE UNITED STEELWORKERS OF AMERICA WHILE HE SAYS HIS UNION DOESN'T FAVOR LONGER CONTRACTS ALONE IT WILL AGREE TO THEM IN RETURN FOR ITEMS SUCH AS CLAUSES BARRING LAYOFFS AND A GREATER SAY IN DECISION MAKING AT THE STEEL COMPANIES THE APPEAL TO THE STEELMAKERS IS STEADY PRODUCTION IN THE PAST THE MERE THREAT OF A STRIKE CAUSED CUSTOMERS TO STOCKPILE STEEL ONLY TO CUT ORDERS AFTER A SETTLEMENT WAS REACHED OTHERS TOOK BUSINESS ELSEWHERE SOME CUSTOMERS WOULD SIMPLY START PLACING ORDERS WITH FOREIGNERS SAYS DICK COFFEE VICE PRESIDENT FOR HUMAN RESOURCES AT NATIONAL STEEL CORPORATION IN MISHAWAKA INDIANA BUT COMPANIES ALSO LIKE THE PROMISE OF COOPERATION IN EFFORTS TO BOOST PRODUCTIVITY AT NATIONAL STEEL SAYS MR. COFFEE COOPERATION IS A STRATEGIC ISSUE A MAJOR GOAL FOR CUMMINS IN ITS ELEVEN YEAR PACT WITH THE DIESEL WORKERS UNION WAS THE RIGHT TO MOVE TO A TEAM BASED WORK SYSTEM STARTING IN NINETEEN NINETY SIX THE SYSTEM HAS BROUGHT FLEXIBILITY AND COST SAVINGS AT OTHER CUMMINS PLANTS WHERE IT ALREADY IS IN PLACE STILL LONG TERM CONTRACTS CARRY OBVIOUS RISKS IF COMPANIES PERFORM BETTER THAN EXPECTED UNIONS CAN'T RETURN TO THE BARGAINING TABLE TO NEGOTIATE CONTRACT IMPROVEMENTS IN NOVEMBER THE TEAMSTERS UNION RATIFIED A FOUR YEAR AGREEMENT COVERING ONE HUNDRED SIXTY FIVE THOUSAND WORKERS AT UNITED PARCEL SERVICE ENDING A LONG HISTORY OF THREE YEAR DEALS BUT THE UNION REJECTED THE NOTION OF A SIX YEAR AGREEMENT SAYS A SPOKESMAN BECAUSE THE WORLD CAN CHANGE TREMENDOUSLY IN THAT TIME BUSINESSES CAN BE HURT IF SALES TURN DOWN AND THEY'RE LOCKED INTO AGREEMENTS THEY CAN'T AFFORD A CUMMINS EXECUTIVE SAYS COMPANY OFFICIALS ARGUED STRENUOUSLY AMONG THEMSELVES WHETHER THEY SHOULD FORGE AN ELEVEN YEAR PACT WITH THE DIESEL WORKERS IF TIMES GET TOUGH AT NATIONAL STEEL QUOTE YOU DON'T HAVE A REAL OPPORTUNITY TO GET BACK IN AND BARGAIN SOMETHING THAT GIVES YOU RELIEF QUOTE SAYS MR. COFFEE THE SAFETY VALVE HE SAYS IS THE HOPE THAT THE UNION WOULD RENEGOTIATE BEFORE PUTTING THE COMPANY IN DANGER SOME THINK THE TRADITIONAL VIEW THAT LONGER CONTRACTS FAVOR MANAGEMENT IS OUTDATED WITH SHORTER CONTRACTS UNIONS ARE ALWAYS IN A REACTIVE CRISIS MODE ARGUES JOSEPH UEHLEIN AN OFFICIAL IN THE A. F. L. C. I. O.'S INDUSTRIAL UNION DEPARTMENT WITH MORE TIME BETWEEN NEGOTIATIONS UNIONS CAN FOCUS ON PRIORITIES SUCH AS ORGANIZING NEW MEMBERS UNITED MINE WORKERS PRESIDENT RICHARD TRUMKA VOWS TO DO JUST THAT NOW THAT THE UNION HAS SECURED FIVE YEAR DEALS WITH COAL COMPANIES IAN MARTIN PASSED OVER LAST YEAR FOR THE CHIEF EXECUTIVE OFFICER'S JOB AT GRAND METROPOLITAN P. L. C. HAS RESIGNED TO FORM AN INVESTMENT PARTNERSHIP WITH NEW YORK BASED FINANCIERS KOHLBERG KRAVIS ROBERTS AND COMPANY THE NEW FIRM CALLED GLENISLA GROUP WILL BECOME K. K. R.'S FIRST PARTNERSHIP TO FOCUS EXCLUSIVELY ON EUROPEAN VENTURES SOMETHING THE NEW YORK FIRM HAS LONG BEEN INTERESTED IN BUT HERETOFORE UNSUCCESSFUL IN DOING GLENISLA EXPECTS TO BUY OR INVEST IN COMPANIES IN THE U. K. AND WESTERN EUROPE BUT MR. MARTIN WHO HAD BEEN VICE CHAIRMAN OF GRAND MET SAID GLENISLA INITIALLY WON'T INVEST IN THE FOOD AND DRINKS INDUSTRY PARTLY BECAUSE OF A CONTRACTUAL AGREEMENT WITH GRAND MET THE FIFTY EIGHT YEAR OLD MR. MARTIN ONCE WIDELY EXPECTED TO BECOME C. E. O. OF THE BRITISH FOOD AND DRINKS CONGLOMERATE WAS DENIED THE JOB WHEN GRAND MET'S BOARD INSTEAD CHOSE GEORGE BULL LAST SEPTEMBER GRAND MET CHAIRMAN SIR ALLEN SHEPPARD WHO WAS ALSO CHIEF EXECUTIVE AT THE TIME SAID MR. BULL WAS SELECTED BECAUSE OF HIS EXPERTISE IN MARKETING AND BRAND MANAGEMENT MR. MARTIN'S BACKGROUND IS IN FINANCE AFTER MR. BULL'S APPOINTMENT MR. MARTIN RESIGNED HIS POSITION AS GROUP MANAGING DIRECTOR AND CHIEF OPERATING OFFICER TO BECOME NONEXECUTIVE DEPUTY CHAIRMAN HE THEN MADE NO SECRET OF HIS DESIRE TO MOVE ON QUOTE I WANTED SOMETHING WITH INTELLECTUAL STIMULATION AND EQUITY PARTICIPATION QUOTE MR. MARTIN SAID I HAVE A LOT OF GAS LEFT IN MY TANK AND THIS FITS IN COMPLETELY WITH THE KIND OF ENTREPRENEURIAL PROJECT I WANTED GRAND MET DECLINED TO COMMENT ON MR. MARTIN'S DEPARTURE A K. K. R. SPOKESWOMAN CONFIRMED THE DETAILS OF ITS PARTICIPATION IN THE NEW COMPANY BUT ITS EXECUTIVES WEREN'T AVAILABLE FOR COMMENT K. K. R. IS EXPECTED TO FULLY FINANCE THE WORKING CAPITAL OF GLENISLA AND ITS DIRECTOR WILL MAKE SPECIFIC INVESTMENT DECISIONS JOINTLY WITH MR. MARTIN INCLUDING MONEY FROM ITS CLIENTS THE NEW YORK FIRM CURRENTLY HAS ABOUT TWO BILLION DOLLARS AVAILABLE FOR INVESTMENT SOME OF WHICH WILL BE USED FOR GLENISLA PROJECTS THE COMPANY IS NAMED AFTER A VALLEY IN CENTRAL SCOTLAND THAT IS MR. MARTIN'S FAVORITE AREA FOR SALMON FISHING DELTA AIR LINES SAID JANUARY TRAFFIC INCREASED FIVE POINT ONE PERCENT THE AIRLINE REPORTED REVENUE PASSENGER MILES OF SIX POINT TWO FIVE BILLION UP FROM FIVE POINT NINE FIVE BILLION FOR JANUARY NINETEEN NINETY TWO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED INCREASED TO FIFTY EIGHT POINT OH SEVEN PERCENT FROM FIFTY THREE POINT EIGHT THREE PERCENT H. EARL JOUDRIE A DIRECTOR WAS NAMED NONEXECUTIVE CHAIRMAN SUCCEEDING HUGH L. MACAULAY WHO WILL STEP DOWN FROM THE POSITION IN MAY MR. MACAULAY SIXTY NINE YEARS OLD WILL REMAIN ON THE BOARD MR. JOUDRIE FIFTY NINE ALSO IS CHAIRMAN OF SEVERAL OTHER CANADIAN COMPANIES CANADIAN TIRE IS A RETAILING CONCERN IN TORONTO THAT SELLS HARDWARE SPORTING GOODS AND AUTOMOTIVE REPAIR SERVICES IF PRESIDENT CLINTON HAS HIS WAY FLEDGLING ENTREPRENEURS NO LONGER WILL GET FREE ADVICE AT SMALL BUSINESS DEVELOPMENT CENTERS BUT WILL HAVE TO PONY UP FIFTEEN DOLLARS AN HOUR UNDER THE ONE POINT FIVE TRILLION DOLLAR BUDGET THAT THE PRESIDENT UNVEILED YESTERDAY THE SMALL BUSINESS ADMINISTRATION ALSO WOULD TRIPLE THE COST OF MOST OF ITS PUBLICATIONS TO ONE DOLLAR AND FIFTY CENTS START CHARGING FOR USE OF ITS ELECTRONIC BULLETIN BOARD AND KILL A PROGRAM THAT GIVES GRANTS FOR SMALL COMPANIES TO PLANT TREES MR. CLINTON ALSO WOULD INITIATE A FEE FOR REVISING S. B. A. GUARANTEED LOANS AT THE SAME TIME HOWEVER HE PROPOSES TO SHARPLY INCREASE THE PROGRAM'S LOANS TO SMALL BUSINESSES S. B. A. DEPUTY ADMINISTRATOR CASSANDRA PULLEY SAID THE PROPOSALS TO ADD OR INCREASE CERTAIN CHARGES FOR SMALL FIRMS RECOGNIZE QUOTE THAT THE BEST THING THE GOVERNMENT CAN DO FOR SMALL BUSINESS AND THE ECONOMY IS TO REDUCE THE DEFICIT QUOTE SHE SAID SOME OF THE NEW FEES THE AGENCY'S CLIENTS WILL FACE ARE STANDARD IN PRIVATE INDUSTRY THE ADMINISTRATION EXPECTS THAT THE PROPOSED CHARGE FOR COUNSELING AT THE SMALL BUSINESS DEVELOPMENT CENTERS LOCATED AT ABOUT NINE HUNDRED COLLEGES AROUND THE COUNTRY WOULD RAISE ABOUT SEVENTEEN MILLION DOLLARS IN FISCAL NINETEEN NINETY FIVE THE BUDGET ALSO WOULD SET A FEE OF SEVENTY FIVE DOLLARS PER LOAN FOR RESTRUCTURING OR REFINANCING S. B. A. GUARANTEED LOANS A CHARGE OFFICIALS SAY WILL BRING SEVEN POINT TWO MILLION DOLLARS A YEAR INTO THE FEDERAL COFFERS AND USERS OF THE ELECTRONIC BULLETIN BOARD THAT THE AGENCY SET UP LAST YEAR WOULD PAY FOR MOST INFORMATION THEY GAIN FROM IT BY USING A PAY PER CALL NINE HUNDRED NUMBER S. B. A. BORROWERS WOULD BENEFIT HOWEVER FROM AN INCREASE IN THE GUARANTEED LOAN FUND WHICH WOULD ALLOW THE AGENCY TO STAND BEHIND NINE BILLION DOLLARS IN SMALL BUSINESS LOANS NEXT FISCAL YEAR COMPARED WITH SEVEN BILLION DOLLARS THIS YEAR THE BUDGET ALSO PROPOSES DOUBLING FUNDS FOR THE S. B. A.'S INVESTMENT COMPANY PROGRAM TO SEVEN HUNDRED THIRTY MILLION DOLLARS IN FISCAL NINETEEN NINETY FIVE THROUGH WHICH THE GOVERNMENT HELPS HIGH RISK VENTURES THE LOAN GUARANTEE PROGRAM FOR REAL ESTATE DEVELOPMENT AND LARGE EQUIPMENT PURCHASES ALSO WOULD DOUBLE ALLOWING THE AGENCY TO OFFER TWO BILLION DOLLARS IN LOANS THE S. B. A. WILL SPONSOR A PROGRAM IN THE ADMINISTRATION'S TWELVE NEW ENTERPRISE ZONES DESIGNED TO GIVE ECONOMIC HELP TO POOR URBAN AND RURAL AREAS IN WHAT IT CALLS ONE STOP CAPITAL SHOPS THE AGENCY WILL OFFER SEVERAL OF ITS CREDIT AND ADVISORY PROGRAMS THROUGH JOB CREATION CENTERS TO BE SET UP IN THOSE COMMUNITIES THE ADMINISTRATION BUDGETED LOAN GUARANTEES TO SUPPORT THREE HUNDRED SEVENTY FIVE MILLION DOLLARS IN LOANS AT THE CENTERS THE ADMINISTRATION SEEKS TO ELIMINATE A MUCH CRITICIZED EIGHTEEN MILLION DOLLARS A YEAR PROGRAM IN WHICH THE S. B. A. PROVIDES GRANTS FOR TREE PLANTING SINCE NINETEEN NINETY ONE THE AGENCY HAS GIVEN STATE AND LOCAL GOVERNMENTS GRANTS TO PLANT TREES IN PARKS AND HIGHWAYS UNDER THE PROGRAM THE LOCAL OFFICIALS MUST MATCH THE FEDERAL GRANT AND THEN CONTRACT WITH SMALL NURSERY BUSINESSES TO PLANT THE TREES THE ADMINISTRATION WANTS TO DO AWAY WITH THIRTEEN MILLION DOLLARS IN OTHER SPECIAL PROGRAMS FUNDED THROUGH THE S. B. A. BUDGET LAST YEAR ALTHOUGH THOSE BUDGET ITEMS ARE USUALLY SMALL LIKE THE TREE PLANTING PROGRAM THEY CAN BE HARD TO KILL BECAUSE THEY USUALLY ARE FUNDED AS A RESULT OF HARD BARGAINING BETWEEN MEMBERS OF CONGRESS OTHER ITEMS IN THE S. B. A. BUDGET INCLUDE THE PROPOSED EXPANSION NATIONWIDE OF A REVOLVING LINE OF CREDIT PROGRAM THAT BEGAN AS A PILOT PROJECT IN NEW ENGLAND IN NINETEEN NINETY TWO IF APPROVED BY CONGRESS THE PROGRAM COULD PROVIDE AS MUCH AS ONE BILLION DOLLARS TO PROVIDE SHORT TERM CREDIT FOR SMALL COMPANIES THE AVERAGE LINE OF CREDIT IN THE NEW ENGLAND PILOT PROGRAM WAS TWO HUNDRED FIFTY THOUSAND DOLLARS S. B. A. OFFICIALS SAID IN ADDITION THE ADMINISTRATION PROPOSES SPENDING THIRTY MILLION DOLLARS TO COVER THE COST OF ALLOWING CERTAIN SMALL BUSINESS OWNERS TO REPAY WITHOUT A PENALTY LOANS THAT CARRY VERY HIGH INTEREST RATES UNDER A NOW DEFUNCT S. B. A. LOAN PROGRAM THE LOANS WERE INTRODUCED IN NINETEEN SEVENTY NINE AND CARRIED DOUBLE DIGIT INTEREST RATES THAT WERE AT THE TIME WELL BELOW THE PRIME RATE OF ABOUT TWENTY PERCENT THE LOAN AGREEMENT INCLUDED AN OBSCURE CLAUSE CHARGING A HIGH PENALTY FOR PREPAYMENT WHICH THE THREE THOUSAND BORROWERS HAVE SINCE ARGUED WAS UNFAIR ROBERTO MAZZOTTA THE CHAIRMAN OF ITALY'S LARGEST SAVINGS BANK SURRENDERED TO POLICE YESTERDAY A WEEK AFTER PROSECUTORS ORDERED HIS ARREST ON CHARGES OF CORRUPTION AND ILLEGAL FINANCING OF POLITICAL PARTIES MR. MAZZOTTA A FORMER CHRISTIAN DEMOCRATIC DEPUTY AND THE HEAD OF CASSA DI RISPARMIO DELLE PROVINCIE LOMBARDE OR CARIPLO TURNED HIMSELF IN AT THE ITALIAN SWISS BORDER A MILAN POLICE OFFICER REPORTED THE BANKER WAS LATER TAKEN TO MILAN TO BE QUESTIONED BY JUDGES OF THE SO CALLED MANI PULITE CLEAN HANDS STAFF WHO HAVE BEEN INVESTIGATING A NATIONWIDE KICKBACK SCANDAL FOR THE PAST TWO YEARS ABOUT THREE THOUSAND POLITICIANS AND BUSINESSMEN HAVE BEEN IMPLICATED IN THE SCANDAL MR. MAZZOTTA AND THREE OTHER TOP CARIPLO EXECUTIVES FACED CHARGES STEMMING FROM KICKBACKS ALLEGEDLY PAID BY THE BANK ON REAL ESTATE INVESTMENTS OUT OF CARIPLO'S PENSION FUNDS MR. MAZZOTTA WAS ON A BUSINESS TRIP ABROAD WHEN THE CARIPLO SCANDAL BROKE LAST WEEK A VICE PRESIDENT AND TWO BANK DIRECTORS WERE ARRESTED LAST MONDAY THE DOW JONES INDUSTRIAL AVERAGE ROARED BACK FROM FRIDAY'S NINETY SIX POINT PLUNGE AS INVESTORS BURIED THEIR STOCK MARKET JITTERS AND REDISCOVERED THEIR OPTIMISM ABOUT THE ECONOMY BOND PRICES FELL AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE SURGED THIRTY FOUR POINT NINE OH POINTS TO THREE THOUSAND NINE HUNDRED SIX POINT THREE TWO STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX ROSE ONE POINT NINE FIVE TO FOUR HUNDRED SEVENTY ONE POINT SEVEN SIX AND THE NASDAQ COMPOSITE INDEX GAINED ONE POINT NINE TWO TO SEVEN HUNDRED SEVENTY NINE POINT TWO OH TRADING BEGAN ON A BEARISH NOTE WITH THE INDUSTRIAL AVERAGE SINKING MORE THAN TWELVE POINTS SMALL STOCKS ALSO WERE PUMMELED EARLY AS THE NASDAQ COMPOSITE PLUNGED MORE THAN TEN POINTS OR ONE POINT THREE PERCENT A CONTINUED SELL OFF IN BONDS ACCOUNTED FOR THE EARLY WEAKNESS IN STOCKS BUT AS BONDS IMPROVED LATER IN THE DAY SO DID STOCKS WITH INVESTORS FLOCKING TO ECONOMICALLY SENSITIVE SHARES ANALYSTS SAID INVESTORS FOUND THE SILVER LINING IN THE RISE IN SHORT TERM RATES THAT SPARKED FRIDAY'S SELL OFF WHILE THE SMALL JUMP IN RATES WON'T MATERIALLY HURT THE ECONOMY OR CORPORATE EARNINGS IT WILL SUBDUE INFLATION PRESSURES AND HELP TO PROLONG THE BULL MARKET SAID ABBY J. COHEN MARKET STRATEGIST AT GOLDMAN SACHS QUOTE WE BELIEVE THERE'S STILL A LONG WAY TO GO IN THE STOCK MARKET IN TERMS OF DURATION AND PRICE GAINS QUOTE MS. COHEN SAID GOLDMAN SACHS EMPHASIZED ITS CONTINUED BULLISHNESS BY BOOSTING ITS RECOMMENDED ALLOCATION TO STOCKS AFTER FRIDAY'S TUMBLE MS. COHEN SAID SHE NOW ADVISES PENSION FUNDS TO INCREASE STOCK HOLDINGS TO SEVENTY PERCENT OF THEIR PORTFOLIOS FROM SIXTY FIVE PERCENT AND REDUCE BOND MARKET EXPOSURE TO TWENTY FIVE PERCENT FROM THIRTY PERCENT FOR AGGRESSIVE PORTFOLIOS THE RECOMMENDED STOCK ALLOCATION ROSE TO EIGHTY PERCENT FROM SEVENTY PERCENT WITH BONDS FALLING TO FIFTEEN PERCENT FROM TWENTY FIVE PERCENT RONALD K. STRIBLEY PORTFOLIO MANAGER AT GLENMEDE TRUST IN PHILADELPHIA SAID FRIDAY'S DECLINE DID NOTHING TO CHANGE HIS VIEW OF THE STOCK MARKET OR THE ECONOMY GLENMEDE TRUST WITH EIGHT POINT FIVE BILLION DOLLARS UNDER MANAGEMENT MAINTAINS A LONG TERM INVESTMENT STRATEGY THAT ISN'T ALTERED BY TEMPORARY BLIPS IN THE MARKET HE SAID I'VE SOLD NOTHING BECAUSE OF FRIDAY AND I'VE BOUGHT NOTHING BECAUSE OF FRIDAY MR. STRIBLEY SAID FOR ALL PRACTICAL PURPOSES IT WAS A NONEVENT SO FAR MUTUAL FUND INVESTORS WHOSE HEAVY BUYING HAS UNDERPINNED THE BULL MARKET APPEAR TO BE SITTING TIGHT NEITHER BAILING OUT NOR BUYING HEAVILY FIDELITY INVESTMENTS THE U. S.'S LARGEST MUTUALFUND FIRM SAID IT WAS SEEING LOWER THAN NORMAL INFLOWS OF CASH INTO STOCK FUNDS YESTERDAY AFTER A SLIGHT OUTFLOW FRIDAY OTHER MUTUAL FUND COMPANIES SAID THEIR PHONE VOLUME YESTERDAY WAS NORMAL BUT THEY SAID IT'S TOO EARLY TO TELL WHETHER INVESTORS WILL TAKE A BREATHER FROM THE FRENZIED PACE OF INVESTING IN STOCK FUNDS THE BIG INFLOW OF MONEY INTO STOCK FUNDS IS THE MAIN REASON FOR REDUCED VOLATILITY IN THE DOW DURING THE PAST YEAR SAID JEFFREY SHAMES PRESIDENT OF MASSACHUSETTS FINANCIAL SERVICES A UNIT OF SUNLIFE ASSURANCE COMPANY OF CANADA WHEN CASH IS COMING IN STOCK PRICE DECLINES TRIGGER RENEWED BUYING BY CASH RICH STOCK MUTUAL FUNDS WITH LESS CASH COMING IN THE MARKET MIGHT BE SUBJECT TO STEEPER DECLINES BEFORE FUNDS START BUYING MR. SHAMES SAID BUT THE REAL PROBLEM WOULD COME IF FUND SHAREHOLDERS PULLED OUT OF STOCKS FORCING THEIR FUNDS TO DUMP SHARES TO MEET REDEMPTION REQUESTS HE SAID SOME ANALYSTS WERE CONCERNED THAT STOCK PRICES SHOWED TOO MUCH RESILIENCE BERNADETTE MURPHY DIRECTOR OF TECHNICAL ANALYSIS AT MONEY MANGEMENT FIRM M. KIMELMAN AND COMPANY SAID THE MARKET WAS TOO HIGH PRICED BEFORE FRIDAY SHE ADDED THAT SHE WOULD PREFER TO SEE A FURTHER DROP IN PRICES OF TWO PERCENT TO THREE PERCENT TO TRIM OFF THE LINGERING FAT IF EVERYONE BUYS ON THE DIPS AS OFTEN HAPPENS WE AGAIN CREATE AN EXCESSIVE PERIOD IN THE MARKET THAT COULD LEAD TO A DEEPER DISAPPOINTMENT SHE SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY SAID HE SEES DISTURBING PARALLELS BETWEEN THIS YEAR AND NINETEEN SIXTY TWO WHEN STOCK PRICES FELL TWENTY SEVEN PERCENT AMONG THE SIMILARITIES LOW INTEREST RATES HIGH STOCK PRICES A HEALTHY ECONOMY AND A YOUNG DEMOCRAT IN THE WHITE HOUSE WITH A BENT FOR FEDERAL INTRUSION INTO THE PRIVATE SECTOR QUOTE CAN YOU HAVE A SHARP CORRECTION IN STOCK PRICES WHEN ALMOST EVERYTHING LOOKS GOOD QUOTE MR. JOHNSON WONDERED THE ANSWER IS YES WORLD WIDE STOCK PRICES DECLINED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST ZERO POINT EIGHT ONE TO ONE HUNDRED FIFTEEN POINT EIGHT THREE STOCK PRICES WERE MIXED VOLUME TOTALED THREE HUNDRED FORTY SIX POINT EIGHT MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND ONE HUNDRED SEVENTY EIGHT ISSUES FELL AND ONE THOUSAND FORTY FOUR ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE LOST MORE THAN THREE EIGHTHS POINT OR OVER THREE DOLLARS AND SEVENTY FIVE CENTS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT THREE NINE PERCENT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN FIVE NINE OH MARKS AND ONE HUNDRED EIGHT POINT SEVEN OH YEN COMPARED WITH ONE POINT SEVEN FIVE EIGHT FIVE MARKS AND ONE HUNDRED NINE POINT THREE OH YEN FRIDAY QUOTE CAN YOU TELL HOW TO GET TO CLAVIER MUSIC QUOTE ASKED A VISITOR LOST IN THE MAZE OF THE TRUMBULL SHOPPING PARK TURN LEFT AT THE BANK AND FOLLOW YOUR EARS TODAY PASSERSBY ARE LISTENING TO THE SONG STYLINGS OF THE STORE'S ASSISTANT MANAGER ADRIAN MUIR WHO'S STANDING IN FRONT OF THE LOWREY GENIE ORGAN AT CLAVIER'S ENTRANCE PLAYING NOW ALLEY CAT NOW IT HAD TO BE YOU NOW MELODY OF LOVE SONGS CAREFULLY CHOSEN FOR THEIR ABILITY TO SOOTHE THE SAVAGE BREASTS AND OPEN THE WALLETS OF THE SIXTY AND SEVENTY SOMETHINGS TRAVERSING THE SOUTHWESTERN CONNECTICUT MALL ALMOST CERTAINLY AFTER THAT GUARANTEED CROWD PLEASER LARA'S THEME BETTER KNOWN AS SOMEWHERE MY LOVE MR. MUIR WILL HEAR FROM A SENIOR CITIZEN OR TWO OR THREE WHAT IS MUSIC TO HIS EARS I'VE ALWAYS WANTED TO LEARN TO PLAY THE ORGAN THE WOULD BE E. POWER BIGGSES HAVE COME TO THE RIGHT PLACE IN AN EFFORT TO BOOST FLAGGING ORGAN SALES CLAVIER LIKE SEVERAL OTHER MUSIC STORES AROUND THE COUNTRY HAS ESTABLISHED ON SITE ONGOING MUSIC GROUP LESSONS FOR GOLDEN AGERS THE PURCHASE OF AN ORGAN GUARANTEES FREE LIFETIME CLASSES THOSE WHO AREN'T QUITE READY TO BUY AN INSTRUMENT PAY ONLY A NOMINAL FEE AROUND ONE DOLLAR AND FIFTY CENTS PER CLASS CURRENTLY TWENTY THOUSAND TO TWENTY FIVE THOUSAND SENIORS IN MAJOR RETIREMENT STATES LIKE FLORIDA CALIFORNIA ARIZONA ALONG WITH TEXAS DELAWARE MARYLAND VIRGINIA NEW JERSEY MISSOURI AND CONNECTICUT ARE INVOLVED IN THE PROGRAM INCLUDED ARE MONTHLY NEWSLETTERS GRADUATION EXERCISES AT THE END OF EACH TEN WEEK SESSION COMPLETE WITH POTLUCK DINNER AND DEPENDING ON A STUDENT'S PROGRESS A CHANCE TO PERFORM AT HOSPITALS AND RETIREMENT CENTERS WE PROMISE THEM THAT IN THE FIRST SIX WEEKS THEY'LL BE PLAYING SIX SONGS WITH BOTH HANDS SAID CLAVIER'S REGIONAL MANAGER LARRY GODWIN AMONG THOSE HALF DOZEN TUNES MARIANNE WITH A LATIN BEAT WHEN THE SAINTS GO MARCHING IN DIXIELAND STYLE AND A BIG BAND FLAVORED IN THE MOOD IN LEVEL I STUDENTS ALSO DO SOME COMPOSING QUOTE AN EIGHTY TWO YEAR OLD MAN WHO A FEW WEEKS AGO DIDN'T KNOW C. FROM GEE WHIZ JUST WROTE A COMPOSITION FOR ORGAN QUOTE MR. GODWIN NOTED THE PROGRAM IS THE BRAINCHILD OF ROBERT ZADEL FORMER HEAD OF THE SAN DIEGO MUSIC COMPANY ORGAN EXCHANGE AND FOUNDER OF LINK US INTERNATIONAL A MISSION VIEJO BASED CONSULTING FIRM FOR THE SENIOR CITIZENS' MARKET I COULD SEE THAT THE ORGAN BUSINESS WAS CHANGING AND WAS GETTING TOUGHER HE SAID I HAD NOTICED OVER THE YEARS IN THE HOME ORGAN MUSIC THAT MOST OF OUR CLIENTS HAD GRAY HAIR I WENT TO ORGAN CONCERTS AND SAW THAT THE AUDIENCE WAS ONE HUNDRED PERCENT GRAY HAIRS THAT BEGAN TO TRIGGER MY IMAGINATION THE SENIORS WERE ATTRACTED BY THE PRODUCT SO I STARTED SPECIALIZING IN ATTRACTING THE SENIORS MR. ZADEL MAKES IT ALL SOUND AS SIMPLE AS DO RE MI BUT THERE WAS PLENTY OF NEED FOR FINE TUNING ALONG THE WAY WHEN YOU TEACH SENIORS YOU HAVE TO WALK A FINE LINE BETWEEN EDUCATION AND FUN HE SAID INSTEAD OF THE ORIGINAL CONCEPT OF HAVING SIX STUDENTS PER CLASS MR. ZADEL AND HIS CLIENTS FOUND THAT TWENTY FIVE TO THIRTY MADE FOR A BETTER SOCIAL EXPERIENCE THEY ALSO FOUND THAT RECOGNIZING ACHIEVEMENT WAS VERY IMPORTANT THUS THE FREQUENT GRADUATION CEREMONIES AND THE STUDENT OF THE MONTH AWARD ACCORDING TO MR. ZADEL THE SUCCESS OF THE PROGRAM ENCOURAGED THE ITALIAN COMPANY GENERAL MUSIC COMPANY TO DESIGN AN AMERICAN ORGAN SPECIALLY FOR THE SENIOR CITIZEN MARKET THE PRINTING ON THE DISPLAY PANEL STUDENTS CALL IT THE DASHBOARD JUST AS THEY CALL THE VOLUME CONTROL THE GAS PEDAL IS LARGER THAN ON CONVENTIONAL ORGANS THE BUTTONS THAT CONTROL VARIOUS FEATURES ARE ALSO BIGGER TO HELP ACCOMMODATE ARTHRITIC HANDS THE SOUND IS BIG BROAD BEAUTIFUL TONES RATHER THAN STRIDENT HEAVY METAL SOUND SAID MR. ZADEL QUOTE AND THE RHYTHM PATTERNS ARE REMINISCENT OF THE THIRTY FORTY AND FIFTY'S MUSIC RATHER THAN TODAY'S SOUND PRIOR TO THIS PROGRAM THE ORGAN BUSINESS WAS READY TO HIT THE BRICKS BECAUSE WE WERE DESIGNING ORGANS FOR TECH HEADS THEY WERE BECOMING MORE LIKE COMPUTERS THAN GOOD OLD FASHIONED INSTRUMENTS ADDED MR. ZADEL WHO ESTIMATES THE ORGAN BUSINESS HAS ANNUAL SALES OF ONE HUNDRED MILLION DOLLARS WITH SENIORS ACCOUNTING FOR SEVENTY PERCENT OF THE MARKET THE SENIOR MARKET IS OF SIGNIFICANT VALUE TO US SAID FRANK WEST NATIONAL ADVERTISING MANAGER FOR THE CHICAGO BASED LOWREY ORGAN COMPANY WHOSE TWO THOUSAND NINE HUNDRED NINETY FIVE DOLLARS GENIE IS THE MODEL OF CHOICE FOR SENIORS STARTING OUT IN THE PROGRAM BUT HE ADDS IF THEY DON'T LEARN HOW TO PLAY IT'S OF NO USE SO THE EDUCATIONAL PROGRAM HAS BEEN VERY HELPFUL TO US CLEARLY THE PROGRAM HAS BEEN OF EQUAL BENEFIT TO THE STORES ONE BRANCH OF THE KANSAS CITY MISSOURI BASED JENKINS MUSIC COMPANY CHAIN HAD BEEN SLATED TO CLOSE BUT THE SUCCESS OF THE PROGRAM HAS BEEN SO STAGGERING THAT THE STORE IS THRIVING SAID JENKINS'S PRESIDENT HAL COWAN QUOTE NOW WE'RE THINKING OF OPENING MORE STORES TO EXPAND THE PROGRAM QUOTE IT'S A WIN WIN SITUATION SAID JIM SOWELL SALES MANAGER AT HOLCOMBE MUSIC IN HOUSTON WE FIND IF WE TRULY SERVICE THESE PEOPLE TEACH THEM HOW TO USE THE INSTRUMENT THEN EITHER ON A DIRECT OR RESIDUAL BASIS THAT'S WHERE OUR SALES WILL COME FROM AND OUR CUSTOMERS GET SOMETHING OUT OF IT THEY GET A HOBBY IT'S LIFE ENHANCING FOR A PRICE WHILE THE ENTRY COST CAN BE AS LOW AS TWO HUNDRED NINETY NINE DOLLARS FOR A USED ORGAN THE AVERAGE STICKER PRICE FOR A FIRST TIME BUYER ACCORDING TO MR. ZADEL IS ONE THOUSAND SIX HUNDRED DOLLARS A STUDENT AT CLAVIER MUSIC WHO STARTED WITH AN EIGHT HUNDRED DOLLAR USED ORGAN RECENTLY TRADED UP TO A TWENTY THOUSAND DOLLAR MODEL AN EXPENSE HE JUSTIFIED BECAUSE OF HIS EIGHT HOUR A DAY PRACTICE HABIT HIS CLASSMATES ARE EQUALLY ENTHUSIASTIC BUT WE DON'T USE THE WORD PRACTICE WE USE THE WORD PLAY SAID SIXTY NINE YEAR OLD EV HERBERT A RETIRED MACHINE DESIGNER WHO PLAYS MANY HOURS A DAY I PUT ON THE BIG BAND SOUND AND GROOVE ONE WOMAN WHO NEEDED GALL BLADDER SURGERY SCHEDULED HER OPERATION SO AS NOT TO CONFLICT WITH GRADUATION FROM LEVEL THE THIRD OTHERS HAVE INSISTED THAT PLAYING THE ORGAN HAS HELPED THEIR INSOMNIA AND ARTHRITIS THE ONE THING ALL THIS PRACTICING HASN'T DONE IS CATAPULT ANY OF THESE LATE ONSET ORGANISTS ONTO THE STAGE OF CARNEGIE HALL OR ANY OTHER PROFESSIONAL VENUE QUOTE I DON'T THINK ANYBODY IN THE PROGRAM EXPECTS TO GO OUT ON THE ROAD AND PERFORM QUOTE SAID HOLCOMBE MUSIC'S MR. SOWELL BUT HE POINTS OUT SENIORS AREN'T BEING PATRONIZED WITH WATERED DOWN INSTRUCTION WHILE THE SONGS ARE PRINTED ON EXTRA LARGE SHEET MUSIC A NOD TO FAILING EYESIGHT AND WHILE THE STUDENTS BEGIN THE PROGRAM USING EASY PLAY NOTATION THE LETTER C. FOR EXAMPLE IS PRINTED UNDER A C. NOTE THEY PROGRESS QUICKLY TO STANDARD NOTATION AND ARE TAUGHT CORRECT FINGERING TIMING AND HARMONY IT'S A REAL MUSICAL EDUCATION INSISTED HAL COWAN IT'S NOT SOME HOKEY POKEY THING YOU COULD SEE WHAT HE MEANT IN THE GLASS FRONTED CLASSROOM JUST OFF CLAVIER'S SALES FLOOR WHERE LEVEL THE FOURTH STUDENTS WERE DISCUSSING THEIR PROGRESS ON AFTER YOU'VE GONE HOW DID YOU ALL DO WITH YOUR PRACTICING ASKED INSTRUCTOR LINDA HASTINGS THERE WERE A LOT OF NEW CHORDS NOW WHO WANTS TO PLAY IT WE'LL TAKE IT REAL SLOW QUOTE I CAN'T DO IT SLOW MOURNS ONE SEPTAGENARIAN USING AN OVERHEAD PROJECTOR MS. HASTINGS DISPLAYED A SCALE AND INVITED HER CHARGES TO COME UP WITH SOME CHORD PROGRESSIONS C. MINOR SHE ENCOURAGED ANY GUESS ON HOW WE WOULD PLAY THAT SOFTLY CAME A VOICE FROM THE BACK OF THE ROOM THE STUDENTS WHO ARE CONSTANTLY AND PROUDLY REMINDING MR. HASTINGS JUST HOW OLD THEY ARE FALL INTO TWO CATEGORIES EITHER THEY HAD MUSIC LESSONS FORCED ON THEM AS CHILDREN AND NEVER HAD THE FREEDOM TO PLAY FOR PLEASURE OR THEY GREW UP IN FAMILIES WHERE MUSIC STUDY JUST WASN'T IN THE BUDGET SUCH WAS THE CASE WITH KAY TELESHA SIXTY SEVEN WHO'S BOUGHT TWO ORGANS SINCE ENROLLING IN THE CLAVIER PROGRAM I'VE ALWAYS WANTED TO PLAY THE STAR SPANGLED BANNER AT YANKEE STADIUM SHE SAID QUOTE IF ROSEANNE CAN SING IT I CAN PLAY IT QUOTE MS. KAUFMAN IS A FREE LANCE WRITER IN NEW YORK RAW STEEL PRODUCTION BY THE NATION'S MILLS INCREASED THREE POINT THREE PERCENT LAST WEEK TO ONE MILLION EIGHT HUNDRED FIFTY NINE THOUSAND TONS FROM ONE MILLION EIGHT HUNDRED THOUSAND TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE FOUR PERCENT FROM THE ONE MILLION SEVEN HUNDRED EIGHTY SEVEN THOUSAND TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED NINETY POINT THREE PERCENT OF ITS CAPABILITY LAST WEEK COMPARED WITH EIGHTY SEVEN POINT FOUR PERCENT THE PREVIOUS WEEK AND EIGHTY FOUR POINT FIVE PERCENT A YEAR EARLIER THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK R. H. MACY AND COMPANY IS EXPECTED THIS WEEK TO ASK A FEDERAL BANKRUPTCY COURT FOR A SIX MONTH EXTENSION OF ITS EXCLUSIVE RIGHT TO FILE A CHAPTER ELEVEN REORGANIZATION PLAN THE DEPARTMENT STORE RETAILER OPERATING UNDER BANKRUPTCY COURT PROCEEDINGS SINCE JANUARY NINETEEN NINETY TWO IS ATTEMPTING TO FEND OFF UNWANTED SUITOR FEDERATED DEPARTMENT STORES INCORPORATED WHICH LAST MONTH ACQUIRED A CHUNK OF MACY SECURED DEBT AND SAID IT WANTS TO MERGE WITH MACY FEDERATED HAS INDICATED IT LIKELY WILL WAIT FOR MACY TO FILE ITS OWN REORGANIZATION PLAN BEFORE SUGGESTING AN ALTERNATIVE BUT ANALYSTS SAY FEDERATED AND OTHER SECURED CREDITORS SUCH AS FIDELITY INVESTMENTS COULD PROTEST THE SIX MONTH EXTENSION REQUEST AT A SEPARATE COURT HEARING IN NEW YORK LATER THIS MONTH QUOTE FEDERATED COULD COME IN AND SAY THEY HAVE A REORGANIZATION PLAN TO BE CONSIDERED RIGHT NOW AND THAT WHILE SOME EXTENSION IS REASONABLE SIX MONTHS IS TOO LONG QUOTE SAYS JACK HERSCH DIRECTOR OF RESEARCH AT M. J. WHITMAN L. P. A DEALER SPECIALIZING IN DISTRESSED SECURITIES MACY FEDERATED AND FIDELITY DECLINED TO COMMENT MACY WHICH IS ATTEMPTING TO IMPROVE ITS PERFORMANCE HAD BEEN EXPECTED TO SEEK THE EXTENSION MACY'S CASH FLOW PERFORMANCE IS ON AN UPWARD TREND SAID M. J. WHITMAN'S MR. HERSCH IF THAT CONTINUES THEY CAN CREATE MORE VALUE FOR TRADE CREDITORS AND THAT POTENTIALLY GIVES MANAGEMENT AN ARGUMENT TO ASK FOR EQUITY IN THE COMPANY THAT EMERGES FROM BANKRUPTCY SO TIME IS IMPORTANT HERE ADDED MEREDITH ADLER A HIGH YIELD BOND ANALYST FOR CHEMICAL SECURITIES INCORPORATED MACY'S GETS A CHANCE TO DO MORE TO FIX ITS BUSINESS ANALYSTS AGREED YESTERDAY THAT MACY WHICH OPERATES ONE HUNDRED ELEVEN MACY'S AND BULLOCK'S DEPARTMENT STORES IS LIKELY TO WIN THE EXTENSION FROM JUDGE BURTON LIFLAND OF FEDERAL BANKRUPTCY COURT IN NEW YORK THE EXTENSION COULD THUS BE GRANTED ON FEBRUARY TWENTY SECOND WHEN MACY HAS A HEARING SCHEDULED WITH JUDGE LIFLAND A PLAN OF REORGANIZATION INVOLVES A DETAILED PAYOUT FOR EACH CREDITOR GROUP AND A TARGET DATE TO EMERGE FROM BANKRUPTCY COURT PROTECTION MACY CURRENTLY OWES ITS CREDITORS ABOUT SIX BILLION DOLLARS MACY AT SOME POINT COULD FACE A COMPETING REORGANIZATION PLAN FROM FEDERATED BUT UNDER BANKRUPTCY LAW FEDERATED CANNOT FILE A PLAN OF REORGANIZATION UNTIL MACY'S EXCLUSIVE RIGHT TO PROPOSE ITS OWN PLAN HAS EXPIRED CURRENTLY THAT EXCLUSIVITY PERIOD TERMINATES MARCH FIFTEENTH BUT CAN BE EXTENDED BY JUDGE LIFLAND JOHN T. LIVINGSTON FORTY YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF TISHMAN URBAN DEVELOPMENT CORPORATION A NEW UNIT OF THIS DEVELOPER OWNER AND CONSTRUCTION COMPANY THE UNIT WAS FORMED TO DEVELOP JOINT PUBLIC AND PRIVATE PROJECTS MR. LIVINGSTON FORMERLY A PARTNER AT LINPRO COMPANY ALSO WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT GOOD NEWS FOR LAID OFF UNEMPLOYED EXECUTIVES THE STIGMA IS FADING ASK SCOTT NORTHCUTT WHO MAY HIRE AS MANY AS ONE HUNDRED TEN EXECUTIVES THIS YEAR FOR MIDDLE MANAGEMENT POSITIONS AT DOLLAR GENERAL CORPORATION A DISCOUNT RETAILER TO HIM THE UNEMPLOYED ARE OPPORTUNITIES FROM HIS OFFICE IN NASHVILLE TENNESSEE MR. NORTHCUTT SCOURS THE RETAILING MARKETPLACE FOR COMPANIES OR STORES THAT ARE ABOUT TO CLOSE THEN LOOKS TO SEE WHO'S AVAILABLE QUOTE I'M IN THE RECRUITER'S CATBIRD SEAT RIGHT NOW QUOTE HE EXULTS TIMES CERTAINLY HAVE CHANGED NOT LONG AGO AN UNEMPLOYED EXECUTIVE WAS SEEN AS DAMAGED GOODS RESUMES WERE ARTFULLY WRITTEN TO OBSCURE WHEN A PERSON STOPPED WORKING AN INTERVIEWER'S QUESTION ON CURRENT JOB SITUATION WAS MET WITH HEMMING AND HAWING WORSE IN MANY CASES THE INTERVIEW JUST DIDN'T HAPPEN IF I GO BACK TEN OR FIFTEEN YEARS IT USED TO BE THAT SOMEONE GOT LAID OFF BECAUSE OF THEIR OWN PERFORMANCE SAYS BILL MALTARICH VICE PRESIDENT OF HUMAN RESOURCE MANAGEMENT AT T. R. W. INCORPORATED IN CLEVELAND WE'D BE SKEPTICAL OF THAT PERSON AND YOU KNOW WHAT WE WERE USUALLY RIGHT BUT THE LAST DECADE CHANGED THE MIND SET OF WHITE COLLAR AMERICA THE MERGER MANIC NINETEEN EIGHTIES FORCED OUT THOUSANDS OF EXECUTIVES MANAGERS AND PROFESSIONALS THEN THE MERGER ERA GAVE WAY TO THE STREAMLINING RESTRUCTURING AND DOWNSIZING OF THE NINETEEN NINETIES TURNING OUT WAVES OF COMPETENT EXECUTIVES WALK DOWN MAIN STREET IN VIRTUALLY ANY TOWN AND STOP ONE HUNDRED PEOPLE I'LL BET YOU THAT SEVENTY OF THEM EITHER KNOW SOMEONE WHO'S BEEN LAID OFF HAVE A RELATIVE WHO'S BEEN LAID OFF OR HAVE BEEN LAID OFF THEMSELVES QUOTE SAYS RICHARD PINOLA PRESIDENT OF RECRUITER RIGHT ASSOCIATES INDEED THE BUREAU OF LABOR STATISTICS SAYS THERE ARE NEARLY ONE MILLION UNEMPLOYED MANAGERS AND PROFESSIONALS AS A RESULT MANY INTERVIEWERS HAVE A NEW VIEW OF OUT OF WORK MANAGERS GIVEN THE ECONOMY AND REORGANIZATIONS AND SUCH IT'S MUCH MORE UNDERSTANDABLE THAT SOMEONE GOT HIT IN THE NECK WITH A PIECE OF SHRAPNEL SAYS MONTE BRADSHAW A VICE PRESIDENT AT CLEVELAND BASED RECRUITER CHRISTIAN AND TIMBERS ABOUT EIGHTEEN MONTHS AGO TOM STOUDT FOUND HIMSELF OUT OF WORK HIS EMPLOYER A PHILADELPHIA LIFE INSURER WAS ON ITS THIRD MAJOR ROUND OF JOB CUTS LOOKING TO LAY OFF ONE HUNDRED PEOPLE WITH LITTLE DIRECT MANAGEMENT RESPONSIBILITY MR. STOUDT'S POSITION AS VICE PRESIDENT WAS VULNERABLE OFFERED A LOWER LEVEL POST MR. STOUDT NOW FIFTY FIVE YEARS OLD CHOSE TO TAKE A SEVERANCE PACKAGE AND USE HIS TEN GOOD YEARS OF WORK LIFE DOING SOMETHING NEW HE STARTED HIS JOB SEARCH IN JANUARY NINETEEN NINETY THREE I WAS ALWAYS UP FRONT WITH THE FACT THAT I WAS DOWNSIZED OUT OF A JOB MR. STOUDT SAYS I CAN'T SAY THE LAYOFF EVER HURT MY CHANCES IN OCTOBER HE SIGNED ON AS A VICE PRESIDENT AT RESPONSE ANALYSIS CORPORATION A PRINCETON N. J. RESEARCH FIRM THAT ONCE WAS A CLIENT OF HIS MANY CORPORATE INTERVIEWERS ARE LIKELY TO HAVE LOST JOBS THEMSELVES DENNIS LUNDER EXECUTIVE DIRECTOR OF MARKETING COMMUNICATIONS AT THE CARD COMPANY AMERICAN GREETINGS CORPORATION HAS HAD TO LOOK FOR WORK SIX TIMES IN HIS NEARLY THIRTY YEAR CAREER RECRUITED FROM CALIFORNIA BY BOWMAN DISTRIBUTION IN CLEVELAND HE RECALLS THAT HE CUT THEIR SEVENTY PERCENT TURNOVER RATE AMONG DISTRICT MANAGERS HE DID SO WELL HE SAYS HE FORCED HIMSELF OUT OF A POSITION AT AMERICAN GREETINGS HE SAYS WE LOOK AT WHY PEOPLE MAY HAVE BEEN IN A STRING OF POSITIONS RATHER THAN JUST TOSSING A PROSPECT ASIDE DOLLAR GENERAL'S MR. NORTHCUTT IS ONE OF THE NEWLY SENSITIVE BREED OF MANAGER IN THE MID NINETEEN EIGHTIES AS AN EXECUTIVE AT BEGLEY COMPANY A DRUG CHAIN IN RICHMOND KENTUCKY THAT WAS FACING A TAKEOVER HE JOINED DOLLAR GENERAL RATHER THAN HAVE AN UNCERTAIN FUTURE BUT HE STAYED AN EXTRA WEEK AT BEGLEY HE SAYS TO LAY OFF ONE HUNDRED PEOPLE QUOTE I DIDN'T WANT A STRANGER TO DO IT QUOTE HE RECALLS HE THINKS OF THOSE DAYS NOW WHEN HE HIRES THERE WERE A LOT OF GOOD PEOPLE AMONG THE ONE HUNDRED HE CUT MR. NORTHCUTT SAYS IT'S NOT A PERFORMANCE ISSUE FOR MANY OF THESE PEOPLE WHILE THE STIGMA IS FADING THE PACE OF CHANGE VARIES IN FAST GROWING INDUSTRIES WITH FEW LAYOFFS UNEMPLOYED EXECUTIVES ARE VIEWED WITH SUSPICION WHY LOSE A JOB WHEN COMPANIES ARE GROWING THERE ARE REGIONAL DIFFERENCES AS WELL COMPANIES IN THE MORE CONSERVATIVE MIDWEST WITH THEIR MULTITIERED CORPORATE STRUCTURES DON'T LOOK TO THE UNEMPLOYED AS OFTEN AS THOSE IN TRANSIENT CALIFORNIA WHERE JOB SWITCHING IS A FACT OF LIFE BUT THE LONGER ON THE UNEMPLOYMENT LINE THE WORSE A CANDIDATE STARTS TO LOOK THE INTERVIEWER HIRER'S AGE ALSO MATTERS OLDER GENERATIONS WERE BUILT ON THE IDEA THAT IF YOU WERE COMPETENT AND CAPABLE YOU DIDN'T GET FIRED SAYS MORTIMER FEINBERG WHOSE NEW YORK FIRM B. F. S. PSYCHOLOGICAL ASSOCIATES INCORPORATED SCREENS EXECUTIVES AND RECRUITERS OFTEN ARE RELUCTANT TO GIVE CORPORATE CLIENTS NAMES OF UNEMPLOYED EXECUTIVES LEST IT APPEAR THEY AREN'T SEARCHING HARD ENOUGH INDEED FIRINGS OR LAYOFFS OFTEN ARE USED AS A TOOL BY INTERVIEWERS DOCTOR FEINBERG ASKS EXECUTIVES WHEN THEY FIRST SAW SIGNS THAT THE AX WAS COMING IF IT CAME AS A REAL SHOCK I BEGIN TO WONDER WHY DIDN'T YOU SEE THE SIGNALS HE SAYS IT'S A PSYCHOLOGICAL COMPETENCE GAUGE MOREOVER SELF IMPOSED STIGMA CAN FOIL JOB OPPORTUNITIES QUOTE ONE OF THE BIGGEST SERVICES WE PROVIDE IS REMINDING PEOPLE HOW THEY GOT TO THE JOB THEY WERE IN CHIEF FINANCIAL OFFICER VICE PRESIDENT PRODUCT MANAGER QUOTE SAYS RIGHT ASSOCIATES' MR. PINOLA GROWING SMALLER COMPANIES WHERE MUCH OF THE JOB GROWTH IS AND THOSE IN SMALLER CITIES ARE BEGINNING TO JUMP AT UNEMPLOYED EXECUTIVES WHEN ROBERT MEULEMAN CHIEF OPERATING OFFICER AT AMCORE FINANCIAL INCORPORATED IN ROCKFORD ILLINOIS WAS HUNTING FOR SOMEONE TO RUN HIS BANKING COMPANY'S ADMINISTRATIVE AND DATA PROCESSING OPERATIONS HE HAD THE CHOICE BETWEEN AN EXECUTIVE AND THE EXECUTIVE'S BOSS WHO WERE LOSING THEIR JOBS AT A MAJOR BANK HE TOOK THE SUBORDINATE IN ANOTHER CASE HE HIRED THE FORMER PRESIDENT OF A SMALL BANK TO RUN ONE OF HIS GROUPS AT AMCORE IN OUT OF THE WAY ROCKFORD BIG COMPANY LAYOFFS MAKE FOR GOOD PICKINGS MAYBE COMPANIES DO AND MAYBE COMPANIES DON'T KEEP THE BEST OF WHAT THEY HAVE MR. MEULEMAN SAYS WE'RE FINDING PEOPLE ALUMINUM COMPANY OF AMERICA SAID IT IS SLASHING ONE HUNDRED THOUSAND METRIC TONS OF ANNUAL PRODUCTION OR ABOUT EIGHT PERCENT OF DOMESTIC CAPACITY SUGGESTING THAT AN ACCORD TO CUT GLOBAL OVERSUPPLY MAY SUCCEED ALCOA THE WORLD'S BIGGEST ALUMINUM PRODUCER SAID THE REDUCTIONS WILL BEGIN IMMEDIATELY AT ITS OPERATIONS IN ROCKDALE TEXAS AND WENATCHEE WASHINGTON THE MOVE WILL CAUSE AN UNDETERMINED NUMBER OF WORK FORCE REDUCTIONS AT THE TWO PLANTS WHICH EMPLOY TWO THOUSAND TWO HUNDRED IN BRUSSELS LATE LAST MONTH MAJOR ALUMINUM PRODUCING NATIONS REACHED AN ACCORD TO CUT GLOBAL PRODUCTION BY UP TO TWO MILLION METRIC TONS A YEAR OR ROUGHLY TEN PERCENT OF THE WORLD'S CAPACITY THE ACCORD WAS SPURRED BY SOARING STOCKPILES LARGELY A RESULT OF RUSSIAN ALUMINUM'S FLOODING THE MARKET AFTER THE DOWNFALL OF THE SOVIET UNION WHOSE MILITARY WAS A BIG CONSUMER OF ALUMINUM THE SUPPLY SPIKE SENT PRICES PLUNGING TO HISTORIC LOWS ON AN INFLATION ADJUSTED BASIS IN THE FALL THOUGH PRICES HAVE RECOVERED SOMEWHAT SINCE THEN THE ACCORD CALLS FOR RUSSIAN SMELTERS TO CUT A TOTAL OF FIVE HUNDRED THOUSAND TONS OF ANNUAL PRODUCTION WITH WESTERN PRODUCERS SLASHING ANOTHER ONE MILLION TO ONE POINT FIVE MILLION TONS SOME OBSERVERS HAVE EXPRESSED SKEPTICISM OVER THE ACCORD SINCE PRODUCERS MUST MAKE THE CUTS VOLUNTARILY ANALYSTS SAID ALCOA'S ANNOUNCEMENT WHICH CAME AFTER THE STOCK MARKET'S CLOSE SHOWED THAT THE PACT IS WORKING QUOTE IT'S CLEAR THAT PRODUCERS ARE ACTING IN THE SPIRIT OF THE BRUSSELS AGREEMENT QUOTE SAID THOMAS M. VAN LEEUWEN AN ANALYST WITH C. S. FIRST BOSTON I WOULD HOPE THAT WE WOULD SEE OTHER PRODUCERS FOLLOW THROUGH ESPECIALLY IN EUROPE THE SOONER PRODUCERS RECOGNIZE WHAT THE PROBLEM IS THE SOONER THEY'LL STOP FEELING THE PAIN ADDED STEWART SPECTOR AN ANALYST WHO WRITES THE SPECTOR REPORT SO FAR WORLD PRODUCERS HAVE ANNOUNCED PRODUCTION CUTS OF ABOUT ONE MILLION TONS ANALYSTS SAID COMBINED WITH DOMESTIC CUTS MADE LAST YEAR ALCOA HAS IDLED FOUR HUNDRED TEN THOUSAND METRIC TONS OF ANNUAL CAPACITY OR THIRTY TWO PERCENT BUT UNDER THE ACCORD THE COMPANY RECEIVES CREDIT FOR ONLY THE MOST RECENT REDUCTION J. DAVID EDWARDS FORTY SEVEN YEARS OLD WAS NAMED PRESIDENT OF THIS DIAMOND EXPLORATION COMPANY MR. EDWARDS SUCCEEDS WILLIAM M. TONKING SIXTY FOUR WHO WILL RETAIN HIS OTHER POST AS CHIEF EXECUTIVE OFFICER MR. EDWARDS SAID MR. TONKING DECIDED TO QUOTE SLOW DOWN QUOTE AS HE APPROACHED RETIREMENT MR. EDWARDS PREVIOUSLY WAS AN EXECUTIVE VICE PRESIDENT FOR UNITED SERVICES ADVISORS INCORPORATED SAN ANTONIO WHERE HE SUPERVISED SEVERAL LARGE GOLD AND NATURAL RESOURCES MUTUAL FUNDS THE CHAIRMAN OF ITALY'S BANCA NAZIONALE DEL LAVORO SAID HE WAS TEMPORARILY STEPPING ASIDE AFTER GIVING A STATEMENT TO PROSECUTORS INVESTIGATING CORRUPTION IN HIS HOMETOWN GIAMPIERO CANTONI IN A STATEMENT ISSUED BY B. N. L. SAID THE MATTER HAD NOTHING TO DO WITH THE BANK ONE OF ITALY'S LARGEST HIS DEPUTY RODOLFO RINALDI WILL TAKE CHARGE IN HIS ABSENCE MR. CANTONI SAID HE HAD VOLUNTEERED INFORMATION TO MILAN PROSECUTORS ABOUT QUOTE URBAN AFFAIRS QUOTE THAT INVOLVED ADMINISTRATORS AND BUSINESSMAN IN SEGRATE A SMALL COMMUNITY NEAR THE CITY PROSECUTORS FOR THE PAST YEAR HAVE BEEN PROBING KICKBACKS BY BUILDERS TO LOCAL OFFICIALS IN EXCHANGE FOR ZONING VARIANCES MR. CANTONI HAD BEEN BROUGHT IN BY THE TREASURY MINISTRY IN NINETEEN EIGHTY NINE TO RUN THE BANK AFTER THE SCANDAL BROKE ABOUT IMPROPER LOANS TO IRAQ BY A B. N. L. BRANCH IN ATLANTA JANE L. WARNER FORTY SEVEN YEARS OLD WAS NAMED PRESIDENT OF TEXTRON INCORPORATED'S RANDALL TEXTRON DIVISION EFFECTIVE IMMEDIATELY TEXTRON IS AN AEROSPACE MANUFACTURING AND FINANCIAL SERVICES CONCERN RANDALL IN CINCINNATI MAKES AUTOMOTIVE PARTS MS. WARNER THE FIRST WOMAN PRESIDENT OF A TEXTRON DIVISION WAS ASSISTANT CHIEF ENGINEER AND PRODUCT MANAGER OF GENERAL MOTORS CORPORATION'S MIDSIZE CAR DIVISION CAMARO AND FIREBIRD PLATFORM SHE SUCCEEDS RUSSELL G. DOWNING WHO LEFT THE COMPANY TO QUOTE PURSUE OTHER INTERESTS QUOTE THE COMPANY SAID MR. DOWNING'S DEPARTURE FOLLOWS A RECENT RECALL BY G. M. OF FIFTY THREE THOUSAND NEW S. TEN PICKUP TRUCKS THAT CONTAINED FAULTY FUEL PIPES THAT PEOPLE FAMILIAR WITH THE RECALL SAID WERE SUPPLIED BY RANDALL TEXTRON G. M. SAID THE FAULTY PARTS DIDN'T MEET FEDERAL STANDARDS FOR FUEL LEAKAGE IN A COLLISION MR. DOWNING COULDN'T BE REACHED FOR COMMENT TEXTRON DIDN'T RETURN PHONE CALLS THE INSURED PROPERTY DAMAGE CAUSED BY THE JANUARY SEVENTEENTH EARTHQUAKE WILL AMOUNT TO TWO POINT FIVE BILLION DOLLARS ACCORDING TO THE INSURANCE INDUSTRY'S OFFICIAL SCOREKEEPER THE PROPERTY CLAIMS SERVICE DIVISION OF THE AMERICAN INSURANCE GROUP WHICH TRACKS INSURANCE LOSSES ON BEHALF OF THE INDUSTRY EXPECTS TWO HUNDRED THIRTY THOUSAND CLAIMS EVENTUALLY WILL RESULT FROM THE CALIFORNIA DISASTER MOST OF THE DAMAGE WAS IN THE SAN FERNANDO VALLEY THE ESTIMATE DOESN'T INCLUDE LOSSES FOR UNINSURED PROPERTY QUOTE APPROXIMATELY THIRTY THREE PERCENT OF HOMEOWNERS IN THE AFFECTED AREA HAVE EARTHQUAKE COVERAGE QUOTE SAID GARY KERNEY AN A. I. G. EXECUTIVE WHO HELPED ASSEMBLE THE DATA COMMERCIAL PROPERTY HAS A SLIGHTLY HIGHER RATE OF COVERAGE AT TWO POINT FIVE BILLION DOLLARS THE EARTHQUAKE WOULD RANK AS THE THIRD WORST NATURAL DISASTER IN THE PAST SEVERAL YEARS COMING AFTER HURRICANES ANDREW AND HUGO B. D. M. INTERNATIONAL INCORPORATED MCCLEAN VIRGINIA SAID IT INTENDS TO MAKE AN INITIAL PUBLIC OFFERING OF CLASS A COMMON SHARES IN THE FIRST HALF OF THE YEAR THE TECHNOLOGICAL SERVICES COMPANY REPORTED SALES OF FOUR HUNDRED TWENTY FOUR MILLION DOLLARS IN NINETEEN NINETY TWO IT HAS ABOUT SIX THOUSAND EMPLOYEES AND OPERATES IN MORE THAN SIXTY LOCATIONS WORLD WIDE EARLIER THIS YEAR B. D. M. SAID IT WOULD BUY A MAJORITY STAKE IN A GERMAN DEFENSE FIRM AND IT HAD FORMED A JOINT VENTURE WITH ELECTROSOURCE INCORPORATED TO PRODUCE HIGH PERFORMANCE LEAD ACID BATTERIES TO POWER ELECTRIC VEHICLES GENERAL MOTORS CORPORATION SAID IT RAISED THE DIVIDENDS ON ITS CLASS E. AND CLASS H. COMMON STOCK REFLECTING IMPROVED FINANCIAL RESULTS AT G. M.'S ELECTRONIC DATA SYSTEMS CORPORATION AND HUGHES ELECTRONICS CORPORATION SUBSIDIARIES G. M.'S SUBSIDIARIES ARE EXPECTED TO REPORT NINETEEN NINETY THREE FINANCIAL RESULTS TOMORROW BUT THE DIVIDEND HIKES INDICATE THAT E. D. S. AND HUGHES WILL POST EARNINGS BETTER THAN THE NINETEEN NINETY TWO RESULTS FOR ALL OF NINETEEN NINETY TWO E. D. S. EARNED SIX HUNDRED THIRTY FIVE POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND THIRTY THREE CENTS A SHARE AND HUGHES EARNED NINE HUNDRED TWENTY ONE POINT SIX MILLION DOLLARS OR ELEVEN CENTS A SHARE THE CLASS E. AND CLASS H. SHARES REPRESENT DIVIDEND INTEREST IN E. D. S. AND HUGHES RESPECTIVELY G. M. RAISED ITS REGULAR QUARTERLY CLASS E. DIVIDEND TO TWELVE CENTS A COMMON SHARE UP TWENTY PERCENT FROM THE PREVIOUS DIVIDEND OF TEN CENTS A SHARE THE REGULAR QUARTERLY DIVIDEND ON G. M. CLASS H. SHARES ROSE ELEVEN PERCENT TO TWENTY CENTS A SHARE UP FROM EIGHTEEN CENTS A SHARE G. M. LAST RAISED THE DIVIDEND ON THE CLASS E. COMMON IN THE NINETEEN NINETY THREE FIRST QUARTER THE CLASS H. COMMON HADN'T BEEN RAISED SINCE NINETEEN EIGHTY NINE THE NEXT DIVIDENDS FOR BOTH THE CLASSES ARE PAYABLE MARCH TENTH TO HOLDERS OF RECORD AS OF FEBRUARY SEVENTEENTH LORENZO SERVITJE SENDRA CHAIRMAN OF THIS MEXICAN BREAD GIANT SAID HE PLANS TO RETIRE SPEAKING IN AN INTERVIEW WITH EL FINANCIERO MR. SERVITJE SEVENTY FIVE YEARS OLD DIDN'T SAY WHEN HE WOULD STEP DOWN BUT SAID HIS BROTHER ROBERTO WOULD CONTINUE AS PRESIDENT BIMBO DIDN'T RETURN CALLS SEEKING CONFIRMATION OF THE FINANCIERO REPORT INTERNATIONAL BUSINESS MACHINES CORPORATION'S I. B. M. P. C. COMPANY UNIT CUT PRICES AS MUCH AS NINETEEN PERCENT ON THE MOST RECENT MODELS OF ITS INCREASINGLY POPULAR VALUEPOINT DESKTOPS FOR COMMERCIAL CUSTOMERS IN RESPONSE TO COMPETITORS AND INTEL CORPORATION'S RECENT REDUCTIONS ON THE PENTIUM CHIP VALUEPOINT'S TWO PENTIUM MODELS ARE STILL ONLY A FRACTION OF TOTAL SHIPMENTS OF I. B. M. P. C.S BUT INTEL HAS CUT PRICES FOURTEEN PERCENT ON THE PENTIUM CHIP IN ORDER TO INCREASE DEMAND AND MAKE ITS HIGH PERFORMANCE CHIP MORE PRICE COMPETITIVE THE I. B. M. PENTIUM DESKTOPS WILL SELL NOW FOR FOUR THOUSAND ONE HUNDRED FORTY NINE DOLLARS COMPARED WITH FOUR THOUSAND SEVEN HUNDRED DOLLARS AND FOUR THOUSAND ONE HUNDRED NINETY NINE DOLLARS DOWN FROM FIVE THOUSAND ONE HUNDRED EIGHTY DOLLARS IN RESPONSE TO COMPAQ COMPUTER CORPORATION CUTS ON SIMILAR MODELS I. B. M. P. C. ALSO LOWERED PRICES ON ALL ENTRY LEVEL VALUEPOINTS BY THIRTEEN PERCENT STARTING AT SEVEN HUNDRED FORTY NINE DOLLARS IT ALSO REDUCED BY TEN PERCENT PRICES FOR THE MULTIMEDIA SERIES WHICH WILL NOW START AT ONE THOUSAND FOUR HUNDRED TWENTY TWO DOLLARS STUART COHEN DIRECTOR OF COMMERCIAL DESKTOPS SAID SOME OF THE VALUEPOINT MODELS WILL BE QUOTE REFRESHED QUOTE THIS SPRING BUT I. B. M. HASN'T YET DECIDED WHICH ONES ANDREI ILLARIONOV THE PRO REFORM ECONOMIST WHO HEADED THE RUSSIAN PRIME MINISTER'S ANALYSIS AND PLANNING GROUP RESIGNED WARNING THAT THE GOVERNMENT'S PLANS WILL LEAD THE COUNTRY TO HYPERINFLATION INDEED ANNOUNCEMENT OF HIS DEPARTURE COINCIDED WITH THE RELEASE OF DATA FROM THE GOVERNMENT'S CENTER FOR ECONOMIC ANALYSIS THAT SAID INFLATION IN RUSSIA JUMPED TO TWENTY TWO PERCENT A MONTH IN JANUARY FROM THIRTEEN PERCENT A MONTH IN DECEMBER IN HIS ANNOUNCEMENT TO PRIME MINISTER VIKTOR CHERNOMYRDIN MR. ILLARIONOV SAID QUOTE THE DECISIONS NOW UNDER PREPARATION BY YOUR GOVERNMENT WILL INEVITABLY DOOM RUSSIA TO HYPERINFLATION QUOTE MR. ILLARIONOV JOINS THE GROWING RANKS OF ECONOMISTS AND REFORMERS WHO HAVE LEFT THE GOVERNMENT SINCE IT WAS REORGANIZED LAST MONTH BRINGING IN ADVOCATES FOR INDUSTRY AND AGRICULTURE WHO CALLED FOR MODERATION OF THE REFORM PROGRAM IN HIS EIGHT MONTHS AS MR. CHERNOMYRDIN'S ECONOMIC ADVISER MR. ILLARIONOV OFTEN CRITICZED THE GOVERNMENT'S PROGRAMS LAST WEEK HE ATTACKED A PLAN TO SUPPORT THE FARM SECTOR WITH SUBSIDIES AND PRIVILEGES AS A SPARKLING TEXT ON LOBBYING THAT WOULD PUSH UP INFLATION JANUARY'S INFLATION RATE WAS THE HIGHEST SINCE OCTOBER WHEN PRICES JUMPED AT A TWENTY FIVE PERCENT MONTHLY RATE CONSUMER SERVICE PRICES JUMPED SHARPLY LAST MONTH RISING SEVENTY PERCENT MAINLY BECAUSE OF HIGHER TRAIN FARES AND TELEPHONE RATES D. R. HORTON INCORPORATED SAID NET SALES CONTRACTS SIGNED IN JANUARY ROSE SEVENTY TWO PERCENT FROM A YEAR EARLIER TO THIRTY TWO POINT FIVE MILLION DOLLARS OR TWO HUNDRED TWELVE HOMES THE HIGHEST MONTHLY SALES IN THE COMPANY'S HISTORY FROM EIGHTEEN POINT NINE MILLION DOLLARS OR ONE HUNDRED TWENTY TWO HOMES DONALD R. HORTON CHAIRMAN AND PRESIDENT OF THE HOME BUILDING CONCERN SAID THE COMPANY'S STRATEGY OF DIVERSIFYING GEOGRAPHICALLY HELPED NEW HOME SALES RISE DESPITE SEVERE WINTER WEATHER THE COMPANY'S MARKETS INCLUDE THE MID ATLANTIC MIDWEST SOUTHEAST SOUTHWEST AND WESTERN REGIONS OF THE U. S. MR. HORTON SAID THE COMPANY IS QUOTE CONFIDENT NINETEEN NINETY FOUR WILL MARK ANOTHER YEAR OF RECORD EARNINGS AT D. R. HORTON QUOTE GIANT GROUP LIMITED A CEMENT MAKING CONCERN CONTROLLED BY FINANCIER BURT SUGARMAN SAID IT HIRED PAINEWEBBER INCORPORATED AS FINANCIAL ADVISER TO EXPLORE THE POSSIBLE SALE OF GIANT'S CEMENT OPERATIONS OR OTHER WAYS OF INCREASING SHAREHOLDER VALUE MR. SUGARMAN WHO IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GIANT AND OWNS FORTY TWO PERCENT OF ITS SHARES SAID IN A NEWS RELEASE THAT THE COMPANY'S STOCK PRICE QUOTE FAILS TO REFLECT THE UNDERLYING VALUE OF GIANT'S ASSETS PARTICULARLY OUR CEMENT OPERATIONS QUOTE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY GIANT GROUP SHARES JUMPED ONE DOLLAR A SHARE OR EIGHT POINT EIGHT PERCENT TO CLOSE AT TWELVE POINT THREE SEVEN FIVE DOLLARS BESIDES ITS GIANT CEMENT COMPANY AND KEYSTONE CEMENT COMPANY UNITS GIANT GROUP HOLDS A THIRTY EIGHT PERCENT INTEREST IN RALLY'S HAMBURGERS INCORPORATED A TROUBLED LOUISVILLE KENTUCKY FAST FOOD CONCERN LAST WEEK MR. SUGARMAN RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OF RALLY'S AND WAS SUCCEEDED BY D. RANDY LANEY GARY PECHOTA PRESIDENT OF THE GIANT CEMENT AND KEYSTONE CEMENT UNITS SAID THE CEMENT INDUSTRY WAS IN THE EARLY STAGES OF A PROJECTED LONG TERM RECOVERY WITH HIGHER DEMAND AND BETTER PRICING IN SOME REGIONS GIANT'S CEMENT OPERATIONS ARE ALSO INVOLVED IN BURNING WASTE MATERIAL FOR FUEL MR. SUGARMAN WHO ALSO HAS A TELEVISION AND FILM PRODUCTION COMPANY FOR A TIME IN NINETEEN EIGHTY SEVEN HELD TALKS ABOUT SELLING GIANT'S CEMENT OPERATIONS AS PART OF AN EFFORT TO TAKE GIANT INTO SEVERAL OTHER BUSINESSES IN THE LARGEST SUCH DIVERSIFICATION ATTEMPT THE EXECUTIVE THROUGH GIANT AND AN AFFILIATE COMPANY LAUNCHED A HOSTILE TAKEOVER BATTLE IN NINETEEN EIGHTY EIGHT FOR MEDIA GENERAL INCORPORATED THE BATTLE ENDED WHEN MEDIA GENERAL THE RICHMOND VIRGINIA PUBLISHING AND BROADCASTING CONCERN BOUGHT BACK MR. SUGARMAN'S SHARES IN A TRANSACTION VALUED AT ABOUT ONE HUNDRED MILLION DOLLARS APPLEBEE'S INTERNATIONAL INCORPORATED A SHELF OFFERING OF ONE MILLION TWO HUNDRED SEVENTY SIX THOUSAND FIVE HUNDRED NINETY SIX COMMON SHARES COMMONWEALTH OF AUSTRALIA A SHELF OFFERING OF FOUR HUNDRED FIFTY MILLION DOLLARS OF DEBT SECURITIES GREATER CHINA FUND INCORPORATED AN OFFERING OF NON TRANSFERABLE RIGHTS TO SUBSCRIBE TO TWO MILLION TWO HUNDRED FIFTY FOUR THOUSAND EIGHT HUNDRED FORTY NINE COMMON SHARES VIA PAINEWEBBER GROUP INCORPORATED H. D. VEST INCORPORATED AN OFFERING OF ONE POINT FIVE MILLION COMMON SHARES BANYAN SYSTEMS INCORPORATED SAID IT AGREED TO ACQUIRE BEYOND INCORPORATED A CLOSELY HELD BURLINGTON MASSACHUSETTS DEVELOPER OF ELECTRONIC MESSAGING SYSTEMS FOR SEVENTEEN POINT FIVE MILLION DOLLARS THE ACQUISITION EXPECTED TO BE COMPLETED DURING THE FIRST QUARTER COULD RESULT IN A ONE TIME CHARGE OF ABOUT ELEVEN MILLION DOLLARS IN THE QUARTER BANYAN SAID THE NETWORKING SOFTWARE PRODUCT CONCERN SAID THE ACQUISITION WILL ENABLE IT TO INTEGRATE ITS MESSAGING TECHNOLOGY WITH BEYOND'S PRODUCTS TO ALLOW MUTUAL CUSTOMERS TO LINK DIFFERENT TYPES OF COMPUTERS INTO CLIENT SERVER NETWORKS U. S. WEST INCORPORATED TELECOM FINLAND AND DEUTSCHE BUNDESPOST TELEKOM EMERGED AS THE BIGGEST WINNERS IN THE LATEST ROUND OF MOBILE TELEPHONE LICENSES AWARDED BY THE RUSSIAN GOVERNMENT THE BIDDING RESULTS INDICATED HOWEVER THAT WESTERN INVESTORS' INTEREST IN RUSSIAN MOBILE TELEPHONES MAY HAVE PEAKED LICENSEES WERE CHOSEN FOR FEWER THAN HALF OF THE SIXTY SEVEN CITY FRANCHISES OFFERED PARTLY BECAUSE TOO FEW BIDDERS EMERGED FOR SOME OF THE CITIES SAID WESTERN PHONE COMPANY EXECUTIVES THE THREE WESTERN PHONE COMPANIES ALREADY AMONG THE LARGEST INVESTORS IN EAST EUROPEAN TELECOMMUNICATIONS WERE EACH SELECTED TO BUILD FOUR NEW CELLULAR TELEPHONE SYSTEMS IN CITIES SCATTERED ACROSS RUSSIA THE GOVERNMENT DIDN'T MAKE A FORMAL ANNOUNCEMENT OF THE LICENSE AWARDS BUT RATHER INFORMED THE WINNING BIDDERS QUIETLY LAST WEEK SINCE THE BREAKUP OF THE SOVIET UNION IN NINETEEN NINETY ONE WESTERN PHONE COMPANIES HAVE BEEN TARGETING CELLULAR TELEPHONES AS ONE OF THE FASTEST WAYS TO MAKE MONEY IN RUSSIA THEIR USERS ARE AMONG THE FEW PEOPLE IN RUSSIA WITH PLENTY OF CASH WESTERNERS LIVING THERE AND RUSSIAN BUSINESSMEN WORKING WITH THEM MOSCOW'S FIRST ROUND OF TWELVE DIGITAL CELLULAR LICENSES ISSUED LAST YEAR DREW MANY WESTERN BIDS BUT THOSE WERE FOR RUSSIA'S BIGGEST AND WEALTHIEST CITIES INCLUDING MOSCOW AND SAINT PETERSBURG BY CONTRAST THE LATEST ROUND OF BIDDING WAS FOR GENERALLY SMALLER OR POORER CITIES SUCH AS MURMANSK AND ROSTOV AS THE BIDDING PROGRESSED LAST AUTUMN EXECUTIVES OF SEVERAL WESTERN COMPANIES INCLUDING U. S. WEST AND GERMANY'S STATE PHONE COMPANY SAID THEY WERE BEING MORE SELECTIVE QUOTE THE FIRST ROUND WAS MORE ATTRACTIVE QUOTE SAID HANS KERLER HEAD OF INTERNATIONAL RELATIONS FOR DEUTSCHE TELEKOM'S MOBILE PHONE DIVISION CALLED DETEMOBIL ACCORDING TO A LIST COMPILED BY ONE WESTERN PHONE COMPANY WINNERS WERE NAMED FOR JUST THIRTY THREE OF THE SIXTY SEVEN FRANCHISES BEING OFFERED ELEVEN WERE FOR STATE OF THE ART SO CALLED GSM NETWORKS AND TWENTY TWO WERE FOR OLDER TECHNOLOGY NMT FOUR HUNDRED FIFTY SYSTEMS INTERFAX BUSINESS REPORT A RUSSIAN NEWS SERVICE REPORTED ELEVEN GMS AWARDS AND JUST NINETEEN NMT FOUR HUNDRED FIFTY LICENSES A MINISTRY SPOKESMAN COULDN'T BE REACHED LAST NIGHT TO CONFIRM THE CORRECT FIGURE WHAT HAPPENED WITH THE UNASSIGNED FRANCHISES ISN'T CLEAR THOUGH IN SOME CASES IT APPEARED THAT TOO FEW BIDDERS HAD STEPPED FORWARD FORCING THE MINISTRY TO POSTPONE A DECISION IN THE CASE OF THE MURMANSK FRANCHISE THE MINISTRY FORMALLY WITHDREW ITS OFFER BECAUSE ONLY ONE BIDDER EMERGED INTERFAX SAID UNLIKE HUNGARY WHERE BIDDING WARS HAVE ERUPTED OVER CELLULAR LICENSES THE MINISTRY IN RUSSIA HADN'T PROPOSED CHARGING WESTERNERS ANYTHING BEYOND AN ADMINISTRATIVE FEE INSTEAD WESTERNERS COMMIT TO BUILD SYSTEMS ACCORDING TO SCHEDULES NEGOTIATED WITH THE MINISTRY THOSE DETAILED TALKS ABOUT THE TERMS OF NEW LICENSES ARE LIKELY TO BEGIN SOON DEUTSCHE TELEKOM'S FOUR NEW SYSTEMS IN PSKOV NOVGOROD TVER AND KALININGRAD MAY COST ROUGHLY THIRTY THREE MILLION DOLLARS TO FORTY MILLION DOLLARS TO BUILD MR. KERLER INDICATED HE SAID ALL FOUR ARE NEAR MOSCOW WHERE DEUTSCHE TELEKOM IS ALREADY AN INVESTOR IN ANOTHER DIGITAL CELLULAR SYSTEM UNDER CONSTRUCTION FOR AT LEAST SIXTY MILLION DOLLARS U. S. WEST IS FOLLOWING A SIMILAR STRATEGY OF GROUPING ITS LICENSES GEOGRAPHICALLY THREE OF ITS FOUR NEW LICENSES ARE IN VOLGOGRAD KRASNODAR AND ROSTOV SOUTHERN RUSSIAN CITIES CLOSE ENOUGH TO ALLOW THE COMPANY TO BUILD ONE NETWORK FOR ALL THREE A SPOKESWOMAN SAID THE FOURTH UDMIRTIYA IS NEAR AN EARLIER U. S. WEST FRANCHISE IN PERM THE FOUR NEW DIGITAL LICENSES ARE IN ADDITION TO EIGHT AWARDED LAST YEAR TELECOM FINLAND'S FOUR AWARDS WERE IN KARELIYA ARCHANGELSK PSKOV AND NOVGOROD THE LAST TWO CITIES WILL HAVE TWO SYSTEMS ONE INVOLVING TELECOM FINLAND AND THE OTHER DEUTSCHE TELEKOM IFIL FINANZIARIA DI PARTECIPAZIONI COMPANY THE INDUSTRIAL HOLDING COMPANY OF THE FIAT GROUP INCREASED ITS VOTING RIGHTS IN FRENCH FOOD AND DRINKS GROUP B. S. N. THE ITALIAN COMPANY NOW CONTROLS EIGHT POINT NINE NINE PERCENT OF B. S. N.'S VOTING RIGHTS COMPARED WITH FOUR POINT SEVEN TWO PERCENT PREVIOUSLY UNDER B. S. N.'S BYLAWS INVESTORS WHO HOLD NOMINATIVE SHARES IN THE COMPANY AND WHO KEEP THEIR SHARES FOR AT LEAST TWO YEARS AUTOMATICALLY RECEIVE INCREASED VOTING RIGHTS D. N. A. PLANT TECHNOLOGY CORPORATION SAID IT EXPANDED DISTRIBUTION OF ITS SPECIALLY BRED TOMATOES CARROTS AND SWEET MINI PEPPER THE COMPANY WHICH DEVELOPS AND MARKETS FRUITS AND VEGETABLES THROUGH BIOTECHNOLOGICAL BREEDING AND GENETIC ENGINEERING SAID ITS LONGER LIFE TOMATOES ARE SOLD BY EIGHT SUPERMARKET CHAINS IN FIVE STATES AND ITS CARROTS ARE SOLD IN TWENTY TWO STATES AND CANADA THE SWEET PEPPER DEVELOPED BY CROSSING A BELL PEPPER WITH A JALAPENO IS NOW SOLD IN SEVEN STATES SWISS DRUGS AND CHEMICALS GROUP CIBA GEIGY A. G. ANNOUNCED TWO NEW VENTURES IN CHINA IN ONE TRANSACTION CIBA SET UP A COMPANY CIBA AGRO JIANGSU LIMITED WITH CAPITAL OF EIGHTEEN MILLION SWISS FRANCS PLANT PROTECTION PRODUCTS WILL BE PRODUCED AT AND MARKETED BEGINNING IN NINETEEN NINETY SIX IN THE SECOND TRANSACTION CIBA PIGMENTS DIVISION AND QINGDAO DYESTUFFS FACTORY SIGNED A PACT TO SET UP A JOINT VENTURE ALLIANCE ENTERTAINMENT CORPORATION COMPLETED ITS PURCHASE OF CLOSELY HELD AIRLIE INCORPORATED KNOWN AS ABBEY ROAD DISTRIBUTORS FOR THIRTY FIVE POINT FIVE MILLION DOLLARS IN CASH COMMON STOCK AND NOTES ABBEY ROAD BASED IN SANTA ANA CALIFORNIA IS A WEST COAST WHOLESALE DISTRIBUTOR OF RECORDED MUSIC THAT EARNED FOUR POINT EIGHT MILLION DOLLARS ON REVENUE OF EIGHTY POINT SEVEN MILLION DOLLARS FOR THE FISCAL YEAR ENDED AUGUST THIRTY FIRST NINETEEN NINETY THREE ALLIANCE A WHOLESALE DISTRIBUTOR OF PRERECORDED MUSIC GENERATED AN ESTIMATED TWO HUNDRED EIGHTY FIVE MILLION DOLLARS IN REVENUE IN NINETEEN NINETY THREE THE COMPANY WENT PUBLIC LAST DECEMBER AND IS TRADED ON THE NASDAQ STOCK MARKET TED TURNER THE BILLIONAIRE CHAIRMAN OF TURNER BROADCASTING SYSTEM INCORPORATED PLEDGED A TOTAL OF SEVENTY FIVE MILLION DOLLARS TO THREE SCHOOLS BROWN UNIVERSITY THE CITADEL AND THE MCCALLIE SCHOOL A PREPARATORY INSTITUTION OVER TIME WILL EACH RECEIVE TWENTY FIVE MILLION DOLLARS THE SCHOOLS WHICH WERE ATTENDED BY MR. TURNER AND SLASH OR HIS SONS WILL GET THE MONEY IN ONE MILLION DOLLAR ANNUAL INCREMENTS OVER FIVE YEARS THE REMAINDER OF THE PLEDGE IS IN THE FORM OF A CHARITABLE TRUST THAT IS TODAY VALUED AT SIXTY MILLION DOLLARS IT WILL BE DIVIDED EQUALLY BY THE THREE SCHOOLS UPON MR. TURNER'S DEATH POLAROID CORPORATION FORMALLY LAUNCHED ITS PROCAM INSTANT CAMERA IN THE U. S. AT A RETAIL PRICE OF ONE HUNDRED NINETY NINE DOLLARS TO TWO HUNDRED FIFTY DOLLARS PROCAM POLAROID'S FIRST CAMERA DESIGNED FOR BUSINESS USERS HAS AUTOMATIC FOCUS AND EXTENDED FLASH CAPABILITIES AS WELL AS RUBBER HANDLES AND A HEAVY STRAP TO WITHSTAND HIGH VOLUME USE POLAROID SAID THE CAMERA CONCERN SAID PROCAM HAD QUOTE STRONG QUOTE INITIAL SALES IN EUROPE AND JAPAN WHERE IT WAS INTRODUCED IN NINETEEN NINETY TWO AND NINETEEN NINETY THREE RESPECTIVELY THE COMPANY DECLINED TO DISCLOSE SALES LEVELS.END TONY VANELLA WANTS A CIGARETTE BUT THE TRAVEL INDUSTRY WON'T LET HIM THE EXECUTIVE VICE PRESIDENT FOR A CHICAGO AREA TRAVEL AGENCY HAS BEEN SHOOED OUTDOORS FROM NO SMOKING AIRPORTS IN MIAMI AND DALLAS HE'S ENCOUNTERED A QUOTE NO SMOKING QUOTE SIGN ON A HERTZ DASHBOARD IN SEATTLE HE COULDN'T LIGHT UP IN A NEW YORK TAXI AND HE COULDN'T GET AN ASHTRAY IN HIS RITZ CARLTON ROOM IN CHICAGO A WATER GLASS WORKED JUST AS WELL MR. VANELLA SAYS THE TRAVEL INDUSTRY HAS DECLARED WAR ON THE MARLBORO MAN FOUR YEARS AFTER FEDERAL REGULATIONS PROMPTED U. S. AIRLINES TO BAN SMOKING ON DOMESTIC FLIGHTS U. A. L. CORPORATION'S UNITED AIRLINES AND NORTHWEST AIRLINES ARE BANISHING IT IN FIRST CLASS ON SOME INTERNATIONAL FLIGHTS HERTZ CORPORATION BARS SMOKING IN EIGHTY PERCENT OF ITS FLEET MARRIOTT CORPORATION IS PUSHING UP THE NUMBER OF ITS NONSMOKING ROOMS THIS YEAR TO SEVENTY PERCENT FROM FIFTY PERCENT WHAT'S EMERGING INDUSTRY EXECUTIVES SAY IS THE SMOKE FREE TRAVEL EXPERIENCE WHERE PUFFING IS PROHIBITED ON EVERYTHING FROM HALF DAY INTERNATIONAL FLIGHTS TO THREE MINUTE AIRPORT SHUTTLES WITH NEARLY THREE QUARTERS OF AMERICANS AS NONSMOKERS MARKET FORCES HAVE DRIVEN THE CHANGES AS CLEAN AIR LIKE SECURITY HAS BECOME AN IMPORTANT SERVICE AMENITY WHILE SMOKING BANS ARE DIFFICULT TO ENFORCE AND THEIR SUCCESS CAN'T EASILY BE QUANTIFIED TRAVEL EXECUTIVES SAY CONSUMERS WILL REWARD SUPPLIERS WITH THE TOUGHEST RESTRICTIONS YOU WILL LOSE CUSTOMERS IF YOU DON'T OFFER SMOKE FREE ROOMS SAYS ARNIE QUIRION GENERAL MANAGER AT THE HILTON HOTEL IN MCLEAN VIRGINIA WHICH BANS SMOKING IN SEVENTY PERCENT OF ITS FOUR HUNDRED FIFTY SEVEN ROOMS MR. QUIRION PREDICTS THAT ALL THE HOTEL'S ROOMS WILL BE NONSMOKING WITHIN FIVE YEARS TO SOME EXTENT HOTELS AND AIRPORTS ARE IMPOSING SMOKING BANS TO COMPLY WITH LOCAL ORDINANCES THE ASHTRAY REBELLION HAS SPREAD TO MORE AND MORE RESTAURANTS CLUBS OFFICE BUILDINGS AND OTHER GATHERING PLACES AS EVIDENCE MOUNTS THAT PASSIVE SMOKING IS HARMFUL YESTERDAY A CONGRESSIONAL SUBCOMMITTEE HEARD TESTIMONY ON A PROPOSAL TO BAN SMOKING IN ALL NONRESIDENTIAL BUILDINGS NATIONWIDE BUT SMOKERS SAY PROHIBITIONS IN RENTAL CARS AND HOTEL ROOMS ARE ASSAULTS ON THEIR PRIVACY IT STRIKES ME AS GROSSLY UNJUST SAY MR. VANELLA WHO SMOKES A PACK A DAY NONSMOKERS SAY THE INJUSTICE IS SMELLING TOBACCO FROM A PREVIOUS HOTEL GUEST OR RENTAL CAR DRIVER FOR SOME SMOKERS NICOTINE IS A FACTOR IN CHOOSING FLIGHT ITINERARIES FOR TERRY J. LITTLE FLIGHTS OF MORE THAN FIVE HOURS ARE ALMOST UNBEARABLE SO WHEN MR. LITTLE A MANAGER FOR A WALL COATINGS COMPANY FLIES FROM HIS HOMETOWN OF HOUSTON TO HAWAII HE PLANS A STOP AT LOS ANGELES INTERNATIONAL AIRPORT WHERE HE CAN SERVE HIS TWO PACK A DAY HABIT MR. LITTLE RECOGNIZES THAT THE TIDE HAS TURNED AGAINST HIM WHEN I FIRST STARTED TRAVELING IN THE MID SEVENTIES SMOKING OR NONSMOKING WAS NEVER AN ISSUE HE SAYS THEN YOU HAD TO REQUEST SPECIAL ACCOMMODATIONS IF YOU WERE NOT A SMOKER NOW YOU HAVE TO REQUEST SPECIAL ACCOMMODATIONS IF YOU ARE A SMOKER QUOTE THE TOBACCO INDUSTRY IS DOING WHAT IT CAN TO KEEP THE FLAME ALIVE PHILIP MORRIS COMPANIES IS SUBSIDIZING CONSTRUCTION OF TEN SMOKING LOUNGES AT HARTSFIELD ATLANTA INTERNATIONAL AIRPORT WHERE SMOKING IS PERMITTED ONLY IN BARS ASKED ABOUT THE TRAVEL INDUSTRY'S CRACKDOWN ON SMOKERS A PHILIP MORRIS SPOKESWOMAN SAYS ANY ISSUE THAT IS OF CONCERN TO OUR CONSUMERS IS OF CONCERN TO US PHILIP MORRIS THE COUNTRY'S LARGEST CIGARETTE MAKER HAS SUED THE CITY OF SAN FRANCISCO OVER ITS SMOKING BAN MANY SMOKERS ACCUSE TRAVEL EXECUTIVES OF STAMPING OUT CIGARETTES TO CUT DOWN ON MAINTENANCE EXPENSES AND CIGARETTE RELATED DAMAGE TO PROPERTY PARTICULARLY IN HOTEL ROOMS THERE'S LESS CLEANING UP TO DO THERE'S LESS PAINTING AND MAYBE IT REDUCES INSURANCE SAYS A NEW YORK ADVERTISING EXECUTIVE WHO ONCE CHANGED ROOMS FOUR TIMES IN A TEXAS HOTEL BEFORE FINDING ONE THAT PERMITTED SMOKING BUT HOTEL EXECUTIVES SAY SMOKING BANS DON'T REDUCE INSURANCE OR CLEANING COSTS IN FACT THEY SAY NO SMOKING ROOMS RAISE COSTS BECAUSE EVERY TIME A GUEST VIOLATES THE BAN THE HOTEL MUST PAY FOR THINGS LIKE RUG AND DRAPE CLEANINGS TO PURGE THE TOBACCO SMELL HOTEL MANAGERS AND OTHER TRAVEL EXECUTIVES SAY THE NO SMOKING TREND COMES FROM CUSTOMERS IN SEARCH OF PURE AIR TO COME INTO A CLEAN SMELLING FRESH ROOM WITH NO STALE ODORS IT'S WONDERFUL SAYS JOHN SCHMIDT GENERAL MANAGER OF BEST WESTERN'S SEVEN SEAS HOTEL IN SAN DIEGO WHICH CONVERTED HALF ITS ROOMS TO NONSMOKING AS A PRACTICAL MATTER SMOKERS WHO NEED A FIX WILL FIND A WAY WRITER FRAN LEBOWITZ FOR EXAMPLE CONCEDED IN TRAVEL AND LEISURE MAGAZINE THAT SHE'S BEEN CAUGHT A DOZEN TIMES SNEAKING CIGARETTES IN AIRPLANES WITHOUT PENALTY HOTEL AND CARRENTAL EXECUTIVES CONCEDE THAT ENFORCEMENT OF NO SMOKING POLICIES IS ESSENTIALLY IMPOSSIBLE AND THEY ARE NOT ABOUT TO ANTAGONIZE A CUSTOMER AND LOSE BUSINESS OVER SOME ASHES FOREIGN INVESTMENT IN VENEZUELA EXCLUDING OIL PETROCHEMICALS COAL INSURANCE AND BANKING ROSE TO TWO POINT FIVE MILLION DOLLARS IN JANUARY THE SUPERINTENDENCY OF FOREIGN INVESTMENT SAID THE FIGURE IS UP FROM TWO POINT OH SEVEN MILLION DOLLARS IN JANUARY NINETEEN NINETY TWO BUT STILL ONLY A FRACTION OF THE FIGURE OF ONE HUNDRED TWENTY ONE POINT SIX MILLION DOLLARS IN JANUARY NINETEEN NINETY ONE INVESTMENT FROM THE U. S. ACCOUNTED FOR EIGHTY ONE PERCENT OF THE TOTAL WHILE INVESTMENT FROM COLOMBIA ACCOUNTED FOR TEN PERCENT ABOUT EIGHTY PERCENT OF INVESTMENT WAS IN FINANCES AND SERVICES AND THIRTEEN POINT FOUR PERCENT WAS IN MANUFACTURING AFTER SURGING STRONGLY IN NINETEEN NINETY AND NINETEEN NINETY ONE FOREIGN INVESTMENT IN VENEZUELA TRAILED OFF FOLLOWING THE FIRST OF TWO COUP ATTEMPTS ON FEBRUARY FOURTH NINETEEN NINETY TWO MICHAEL BURNS FIFTY FIVE WAS NAMED PRESIDENT OF THIS HOLDING COMPANY'S INLAND PACIFIC ENTERPRISES LIMITED UNIT A COMPANY B. C. GAS CREATED TO HOLD ITS NONUTILITIES INVESTMENTS B. C. GAS SAID PATRICK LLOYD FORTY TWO WILL SUCCEED MR. BURNS AS EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION OF ITS B. C. GAS UTILITY LIMITED UNIT MR. LLOYD IS THE GAS UTILITY'S CORPORATE SECRETARY AS WELL AS SENIOR VICE PRESIDENT CORPORATE DEVELOPMENT AND GAS SUPPLY B. C. GAS ALSO ANNOUNCED A REORGANIZATION INTO THREE BUSINESS UNITS B. C. GAS UTILITY INLAND PACIFIC AND A SIXTY SEVEN PERCENT OWNED OIL PIPELINE SUBSIDIARY TRANS MOUNTAIN PIPE LINE COMPANY MYLAN LABORATORIES INCORPORATED SAID ITS MYLAN PHARMACEUTICALS INCORPORATED UNIT ACQUIRED THE EXCLUSIVE RIGHT TO A GENERIC FORMULATION OF SELDANE D. AN ALLERGY MEDICATION FROM A UNIT OF ANDRX CORPORATION A PRIVATE BIOTECHNOLOGY COMPANY BASED IN FORT LAUDERDALE FLORIDA TERMS WEREN'T DISCLOSED MYLAN SAID IT NOW HAS THE EXCLUSIVE RIGHT TO MAKE USE PROMOTE AND SELL A GENERIC SUSTAINED RELEASE FORMULATION OF SELDANE OR TERFENADINE SLASH PSEUDOEPHEDRINE HYDROCHLORIDE IN THE U. S. PUERTO RICO AND CANADA MYLAN A GENERIC DRUG COMPANY WILL DEVELOP THE PRODUCT JOINTLY WITH ANDRX'S ANDA S. R. PHARMACEUTICALS INCORPORATED SELDANE IS MADE BY MARION MERRELL DOW INCORPORATED A UNIT OF DOW CHEMICAL COMPANY THE CANADIAN GOVERNMENT INTENDS TO INTRODUCE LEGISLATION TODAY TO END A TWELVE DAY OLD WORK STOPPAGE BY LONGSHOREMEN THAT HAS SHUT DOWN CANADA'S WEST COAST PORTS THE STOPPAGE HAS HALTED SHIPMENTS OF GRAIN LUMBER AND OTHER COMMODITIES THE DISPUTE INVOLVES CONTRACT DEMANDS OF MEMBERS OF THE INTERNATIONAL LONGSHOREMEN'S AND WAREHOUSEMEN'S UNION THE LONGSHOREMEN HAVE BEEN WITHOUT A CONTRACT SINCE DECEMBER NINETEEN NINETY TWO THE EMPLOYERS ARE REPRESENTED BY THE BRITISH COLUMBIA MARITIME EMPLOYERS' ASSOCIATION THE MAIN ISSUE IN THE DISPUTE IS THE LONGSHOREMEN'S DEMAND FOR TWO POINT TWO OH CANADIAN DOLLAR ONE U. S. DOLLAR AND SIXTY FOUR CENTS INCREASE OVER THREE YEARS IN THEIR HOURLY BASE RATE OF TWENTY ONE CANADIAN DOLLARS AND FORTY ONE CENTS THE LAST MAJOR WEST COAST PORT SHUTDOWN IN NINETEEN EIGHTY SIX WAS ENDED BY LEGISLATION A PROGRAM ADMINISTERED BY THE NATIONAL HEART LUNG AND BLOOD INSTITUTE RECOMMENDED THAT EMERGENCY DEPARTMENTS TRY TO TREAT HEART ATTACK PATIENTS WITH CLOT DISSOLVING DRUGS WITHIN THIRTY MINUTES OF THEIR ARRIVAL AT THE HOSPITAL THE NATIONAL HEART ATTACK ALERT PROGRAM A GROUP OF SCIENTIFIC GOVERNMENT AND VOLUNTARY ORGANIZATIONS ISSUED A REPORT CALLING ON HOSPITAL EMERGENCY DEPARTMENTS TO REDUCE DELAYS IN TREATING HEART ATTACK PATIENTS IN A STATEMENT DOCTOR COSTAS LAMBREW CO CHAIRMAN OF THE PROGRAM'S WORKING GROUP SAID QUOTE NOT EVERY HEART ATTACK PATIENT IS A CANDIDATE FOR CLOT DISSOLVING DRUGS BUT TOO FEW PATIENTS ARE BEING TREATED WITH THROMBOLYTIC THERAPY QUOTE OR THE USE OF DRUGS TO FIGHT CLOTTING A SPOKESMAN FOR GENENTECH INCORPORATED A SOUTH SAN FRANCISCO BIOTECHNOLOGY CONCERN SAID THE REPORT HOLDS THE PROMISE THAT IF THESE RECOMMENDATIONS ARE ADOPTED ACROSS THE COUNTRY YOU'LL SEE MORE PATIENTS TREATED WITH THROMBOLYTIC AGENTS GENENTECH WHICH SELLS T. P. A. THE MOST EXPENSIVE CLOT DISSOLVING DRUG HOLDS ABOUT TWO THIRDS OF THE MARKET FOR SUCH PRODUCTS T. TWO MEDICAL INCORPORATED HURT IN RECENT MONTHS BY INTERNAL TURMOIL AND INCREASING COMPETITION SAID IT AGREED TO MERGE WITH THREE OTHER HEALTH CARE COMPANIES IN A COMBINATION THAT WOULD CREATE THE COUNTRY'S SECOND LARGEST INFUSION THERAPY CONCERN UNDER THE TERMS OF THE AGREEMENT T. TWO MEDICAL SHAREHOLDERS WOULD RECEIVE SIXTY SEVEN PERCENT OWNERSHIP IN A COMPANY CREATED BY A POOLING OF INTERESTS AMONG T. TWO MEDICAL CURAFLEX HEALTH SERVICES INCORPORATED HEALTHINFUSION INCORPORATED AND MEDISYS INCORPORATED THE LATTER THREE COMPANIES IN DECEMBER DISCLOSED PLANS TO MERGE WITH ONE ANOTHER FOR T. TWO MEDICAL THE MERGER COULD PROVIDE A GRACEFUL EXIT FROM MYRIAD PROBLEMS THE COMPANY HAS BEEN REELING FROM THE DISCLOSURE IN AUGUST OF ACCOUNTING IRREGULARITIES AND ERRORS AND A SUBSEQUENT INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY HAS ALSO BEEN A SUBJECT OF A MEDICARE FRAUD INVESTIGATION BY THE U. S. DEPARTMENT OF HEALTH AND HUMAN SERVICES WHICH IS TRYING TO DETERMINE WHETHER T. TWO DOCTORS IMPROPERLY REFERRED PATIENTS TO CENTERS IN WHICH THEY HAVE OWNERSHIP STAKES T. TWO HAS DENIED ANY WRONGDOING AND EMPHASIZES THAT MOST OF ITS REFERRALS COME FROM PHYSICIANS WHO DON'T HAVE DIRECT OWNERSHIP IN T. TWO CENTERS THE MERGER WOULD ALLOW THE COMPANY WHICH IS BASED IN ALPHARETTA GEORGIA TO DISENGAGE FROM ITS RELATIONSHIPS WITH ITS DOCTOR OWNERS T. TWO MEDICAL SAID IT NOW PLANS TO BUY OUT PHYSICIANS WHO HAVE OWNERSHIP STAKES IN ITS CENTERS AFTER THE MERGER SOME SEVEN POINT FIVE MILLION RESTRICTED T. TWO SHARES HELD BY OTHER DOCTORS WILL BECOME UNRESTRICTED THE COMPANY SAID INSTEAD OF HAVING TO RELY PRIMARILY ON DOCTOR REFERRALS TO GENERATE NEW BUSINESS T. TWO WOULD THEN BE ABLE TO USE THE SALES FORCE OF THE COMBINED COMPANIES PREVIOUSLY IT ONLY HAD A TINY SALES FORCE OF ITS OWN FOR CURAFLEX HEALTHINFUSION AND MEDISYS THE ADDITION OF T. TWO CREATES A TWO HUNDRED TWENTY CENTER NATIONWIDE NETWORK THAT WILL BE MORE COMPETITIVE THAN ANY OF THE COMPANIES COULD HAVE BEEN INDIVIDUALLY THE NEW INFUSION THERAPY CONCERN TO BE CALLED CORAM HEALTHCARE CORPORATION WILL BE SECOND IN SIZE TO CAREMARK INTERNATIONAL INCORPORATED WHICH HAD NINETEEN NINETY THREE SALES OF ONE POINT SEVEN EIGHT BILLION DOLLARS THE COMBINED COMPANIES WHICH DELIVER DRUGS INTRAVENOUSLY EITHER IN THE HOME OR IN OUTPATIENT CENTERS WILL HAVE ANNUAL REVENUE OF ABOUT FIVE HUNDRED MILLION DOLLARS ABOUT SIXTY OF THE FOUR COMPANIES' COMBINED TWO HUNDRED TWENTY THERAPY CENTERS OVERLAP ACCORDING TO A COMPANY EXECUTIVE WHO SAID APPROXIMATELY TEN MILLION DOLLARS CAN BE SAVED THROUGH CONSOLIDATION CHARLES A. LAVERTY CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CURAFLEX WILL SERVE AS PRESIDENT AND C. E. O. OF THE NEW COMPANY MR. LAVERTY SAID HE EXPECTS AN INDIVIDUAL FROM OUTSIDE THE COMPANIES TO BE NAMED CHAIRMAN OF CORAM HEALTHCARE IN ABOUT TWO WEEKS EXECUTIVES AT T. TWO MEDICAL WILL ASSUME LESSER ROLES TOMMY CARTER T. TWO MEDICAL'S PRESIDENT AND C. E. O. WILL BE VICE CHAIRMAN OF CORAM AND THOMAS E. HAIRE T. TWO MEDICAL'S CHAIRMAN WILL HOLD NO OFFICIAL POSITION IN THE NEW COMPANY T. TWO MEDICAL'S STOCK ROSE TWELVE POINT FIVE CENTS TO EIGHT DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CURAFLEX FELL SIX POINT TWO FIVE CENTS TO FIVE POINT SIX TWO FIVE DOLLARS HEALTHINFUSION FELL EIGHTY SEVEN POINT FIVE CENTS TO SIX POINT ONE TWO FIVE DOLLARS AND MEDISYS FELL SIX POINT TWO FIVE CENTS TO THREE DOLLARS AND FIFTY CENTS ALL IN NASDAQ STOCK MARKET TRADING T. TWO WAS ONCE A HIGHFLIER WHOSE STOCK SOLD FOR AS MUCH AS SIXTY SEVEN DOLLARS A SHARE IN JANUARY NINETEEN NINETY TWO THE COMPANY'S PROBLEMS BEGAN WHEN ITS DOCTOR OWNERSHIP ARRANGEMENTS CAME UNDER SCRUTINY IN NINETEEN NINETY TWO THE COMPANY DISCLOSED ACCOUNTING IRREGULARITIES RELATING PRIMARILY TO THE UNDERESTIMATION OF BAD DEBT IN AUGUST A NUMBER OF KEY EXECUTIVES HAVE SINCE DEPARTED FOR ITS FISCAL FIRST QUARTER ENDED DECEMBER THIRTY FIRST THE COMPANY POSTED A FORTY TWO PERCENT EARNINGS DECLINE TO EIGHT POINT ONE MILLION DOLLARS FROM FOURTEEN POINT ONE MILLION DOLLARS FOR THE YEAR EARLIER PERIOD REVENUE FELL ELEVEN PERCENT TO SIXTY THREE POINT SEVEN MILLION DOLLARS FROM SEVENTY ONE POINT EIGHT MILLION DOLLARS T. TWO MEDICAL ATTRIBUTED THE DROP TO CONTINUED PRICING PRESSURE THROUGHOUT THE HEALTHCARE INDUSTRY CURAFLEX IS BASED IN ONTARIO CALIFORNIA HEALTHINFUSION IN MIAMI AND MEDISYS IN MINNEAPOLIS PRESIDENT CLINTON'S NEW BUDGET RAISES THE POSSIBILITY OF SHARP CHANGES IN BANK REGULATION IN ORDER TO REDUCE POTENTIAL FUTURE RISKS TO THE FINANCIAL SYSTEM THE CHANGES INCLUDE NEW ACCOUNTING STANDARDS THAT WOULD REQUIRE BANKS TO VALUE THEIR ASSETS AT MARKET RATHER THAN HISTORICAL PRICES THIS CHANGE HAS BEEN RECOMMENDED BY THE GENERAL ACCOUNTING OFFICE BUT IS OPPOSED BY THE BANKING INDUSTRY AND THE FEDERAL RESERVE BOARD IN ADDITION THE BUDGET SUGGESTS THAT EXTREMELY HEALTHY BANKS COULD BOLSTER THEIR INCOME IN THE FACE OF MOUNTING COMPETITION BY UNDERWRITING THE DISTRIBUTION OF EQUITY SECURITIES AND INSURANCE THIS EXPANSION OF BANK POWERS WOULD REQUIRE A REPEAL OF DEPRESSION ERA LAWS THAT SEPARATE THE BANKING AND SECURITIES INDUSTRIES BOTH THESE SUGGESTED CHANGES ARE DISCUSSED BUT NOT ACTUALLY PROPOSED IN A VOLUME OF ANALYSIS THAT ACCOMPANIES THE BUDGET MR. CLINTON SENT TO CONGRESS YESTERDAY THEY GO WELL BEYOND PREVIOUSLY STATED ADMINISTRATION POSITIONS THE RENEWED HEALTH OF THE BANKING SYSTEM IS GENERATING A BUDGET WINDFALL BUT THE ADMINISTRATION WARNS THAT A FAILURE IN THE FAST PACED FINANCIAL DERIVATIVES MARKET COULD CAUSE FUTURE BUDGET STRAINS AGENCIES THAT INSURE BANK AND THRIFT DEPOSITS WILL TAKE IN THIRTY SIX POINT SIX BILLION DOLLARS MORE THAN THEY PAY OUT IN THE FIVE YEARS STARTING IN FISCAL YEAR NINETEEN NINETY FIVE WHICH STARTS NEXT OCTOBER FIRST THE BUDGET NOTES WITH BANK AND THRIFT PROFITS RUNNING AT RECORD LEVELS FINANCIAL FAILURES ARE DOWN SHARPLY FROM SEVERAL YEARS AGO COLLECTIONS FROM DEPOSIT INSURANCE PREMIUMS AND THE SALES OF ASSETS OF FAILED BANKS AND THRIFTS WILL RUN SHARPLY HIGHER THAN COSTS TO THE FUNDS BUT THE BUDGET WARNS THAT THE HEALTH OF THE BANKING SYSTEM FACES POSSIBLE CHALLENGES INCLUDING POTENTIALLY A JOLT FROM A BANK FAILURE TIED TO PROBLEMS IN THE MARKET FOR DERIVATIVES THESE ARE COMPLEX HEDGING INSTRUMENTS THAT BANKS BROKERS AND THEIR CUSTOMERS USE TO DEFRAY THE RISK OF CHANGES IN INTEREST RATES STOCK PRICES FOREIGN EXCHANGE RATES AND COMMODITIES PRICES QUOTE THE DIFFICULTY OF OVERSEEING THESE TRANSACTIONS WHEN COUPLED WITH THE MORAL HAZARD CREATED BY DEPOSIT INSURANCE PRESENTS AN OPPORTUNITY FOR ABUSE WITHIN THE BANKING INDUSTRY QUOTE THAT COULD LEAD TO LOSSES THAT QUOTE INCREASE THE EXPOSURE OF THE FEDERAL GOVERNMENT TO DEPOSIT INSURANCE CLAIMS QUOTE A BUDGET ANALYSIS SAYS ALL BANK REGULATORS ARE BEEFING UP THEIR SUPERVISION OF THE MULTITRILLION DOLLAR DERIVATIVES MARKET AND TREASURY SECRETARY LLOYD BENTSEN RECENTLY CREATED AN INTERAGENCY GROUP INCLUDING THE SECURITIES AND EXCHANGE COMMISSION AND THE COMMODITIES FUTURES TRADING COMMISSION TO MONITOR DERIVATIVES THE BUDGET ALSO NOTES THAT BANK INCOME COULD BE SQUEEZED BY RISING INTEREST RATES AND BY TOUGHER COMPETITION FROM MUTUAL FUNDS SECURITIES FIRMS AND OTHER NONBANK COMPETITORS ASIDE FROM ALLOWING SOUND BANKS TO UNDERWRITE SECURITIES AND INSURANCE THE BUDGET REPEATS THE ADMINISTRATION'S VIEW THAT BANKS SHOULD BE ALLOWED TO OPERATE NATIONWIDE BRANCH SYSTEMS ONE OF THE LONGEST AND MOST HEAVILY LITIGATED DUMPING CASES IN U. S. LEGAL HISTORY ABRUPTLY ENDED AS THE TWO RIVALS REALIZED THEY COULD NO LONGER GAIN FROM CONTINUING THE FIGHT IN A JOINT STATEMENT SMITH CORONA CORPORATION AND BROTHER INDUSTRIES LIMITED OF JAPAN SAID THEY AGREED TO TERMINATE ALL TRADE LITIGATION BETWEEN THEM FILED OVER THE LAST FOURTEEN YEARS QUOTE BOTH OF OUR COMPANIES ARE BETTER SERVED BY CONCENTRATING ON THE MARKETPLACE AND SERVING OUR CUSTOMERS QUOTE THE COMPANIES SAID THE END OF THE LITIGATION SEEMED INEVITABLE IN THE TWENTY YEARS THE TWO COMPANIES HAVE CHARGED EACH OTHER WITH DUMPING SELLING PORTABLE TYPEWRITERS AND WORD PROCESSORS BELOW COST IN THE U. S. THEY HAVE GONE THROUGH SUCH DRASTIC TRANSFORMATION THAT THEY SOMETIMES FOUND THEMSELVES IN REVERSED ROLES SMITH CORONA WHICH IS BASED IN NEW CANAAN CONNECTICUT AND HAS A ONE HUNDRED THIRTEEN YEAR HISTORY OF MANUFACTURING IN THE U. S. PRODUCES TYPEWRITERS AND WORD PROCESSORS THE COMPANY IS IN THE PROCESS OF SHIFTING THE LAST OF ITS U. S. PRODUCTION IN CORTLAND N. Y. TO MEXICO AFTER MARCH A SPOKESWOMAN SAID SMITH CORONA'S ENTIRE MANUFACTURING BASE WILL BE LOCATED OUTSIDE THE U. S. THIS COULD TAKE AWAY THE LEGAL BASIS FOR SEEKING PROTECTION UNDER U. S. ANTIDUMPING LAWS MEANWHILE IN NINETEEN EIGHTY SIX BROTHER INDUSTRIES WHICH ALSO MAKES TYPEWRITERS AND WORD PROCESSORS MOVED PRODUCTION FROM ITS PRIMARY FACILITY IN NAGOYA JAPAN TO BARTLETT TENNESSEE QUALIFYING IT AS A U. S. MANUFACTURER IN FACT IN AN IRONIC TWIST BROTHER INDUSTRIES IN NINETEEN NINETY ONE BEGAN CLAIMING THAT IT WAS THE COMPANY THAT REPRESENTED THE U. S. DOMESTIC TYPEWRITER INDUSTRY AND NOT SMITH CORONA WHICH IN NINETEEN EIGHTY NINE BECAME A PUBLIC COMPANY WITH FORTY EIGHT PERCENT OWNED BY BRITAIN'S HANSON P. L. C. MOREOVER BROTHER SUED SMITH CORONA IN NINETEEN NINETY ONE ALLEGING THAT IT WAS DUMPING ITS SINGAPORE MADE TYPEWRITERS IN THE U. S. INDEED IN NINETEEN NINETY THREE THE U. S. COMMERCE DEPARTMENT APPEARED TO AGREE WITH BROTHER IN A PRELIMINARY DETERMINATION THE DEPARTMENT SAID SMITH CORONA WAS SELLING TYPEWRITERS FROM ITS SINGAPORE PLANT AT LESS THAN FAIR VALUE IN THE U. S. AND IN THE SAME RULING THE COMMERCE DEPARTMENT FOUND THAT BROTHER INDUSTRIES REPRESENTED THE DOMESTIC TYPEWRITER INDUSTRY SAID MARK THOMPSON GENERAL COUNSEL OF BROTHER INDUSTRIES HERE WERE TWO COMPANIES CLAIMING TO BE REPRESENTING THE DOMESTIC INDUSTRY AND EACH HAD FILED ANTIDUMPING CLAIMS AGAINST THE OTHER MR. THOMPSON SAYS IT WAS CRAZY WE WERE CHASING OUR TAILS THE TWO PARTIES HAVE BEEN USING LITIGATION TO COMPETE IN THE MARKETPLACE HE SAID AT THE END WE DECIDED TO USE THE MARKETPLACE TO COMPETE THE COMPANIES SAID THAT AS PART OF THE SETTLEMENT THEY WOULD ASK THE COMMERCE DEPARTMENT TO SUSPEND ITS ANTIDUMPING INVESTIGATION OF PORTABLE TYPEWRITERS FROM SINGAPORE AND TO REVOKE ANTIDUMPING DUTIES ON PORTABLE ELECTRIC TYPEWRITERS AND PERSONAL WORD PROCESSORS FROM JAPAN THEY SAID THEY WILL ASK THAT RELATED LITIGATION IN THE U. S. COURT OF INTERNATIONAL TRADE BE DISMISSED AS A RESULT OF THE SETTLEMENT AGREEMENT AMERICAN AIRLINES SAID JANUARY TRAFFIC FELL THREE POINT THREE PERCENT TO SEVEN POINT FOUR BILLION REVENUE PASSENGER MILES FROM SEVEN POINT SIX FIVE BILLION MILES A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE A. M. R. CORPORATION UNIT SAID ITS JANUARY LOAD FACTOR THE PERCENTAGE OF SEATS FILLED ROSE TO FIFTY NINE PERCENT FROM FIFTY SEVEN POINT ONE PERCENT STEPHEN WRIGHT'S QUOTE GOING NATIVE QUOTE FARRAR STRAUS AND GIROUX THREE HUNDRED FIVE PAGES TWENTY TWO DOLLARS IS A ROAD NOVEL A DIABOLIC PICARESQUE A PILGRIM'S PROGRESS THAT BECOMES A DANCE OF DEATH A VOYAGE TO THE END OF NIGHT AN EXECUTIONER'S SONG IT EXHIBITS AN IMPRESSIVE SARDONIC GRANDILOQUENCE AND A FEROCITY THAT OFTEN APPROACHES THE ANOMIE AND SKITTERING VIOLENCE IT CONDEMNS THE GENRE IS FAMILIAR A SATIRE OF POST VIETNAM AMERICA A PUMPED UP PARANOID TOUR OF AN APOCALYPTIC WASTELAND A GROTESQUE CARNIVAL PEOPLED WITH DISAFFECTED SUBURBANITES PSYCHOS FREAKS LOSERS CRACKHEADS PORN STARS SERIAL KILLERS THE DETRITUS OF POSTINDUSTRIAL CAPITALISM POP CULTURE SLEAZE AND SPIRITUAL DESPAIR THE USUAL SUSPECTS BUT MR. WRIGHT RENOVATES THESE CULTURAL CLICHES THROUGH HIS EXCEPTIONALLY PRECISE DESCRIPTIONS OF CHARACTERS AND SCENES THROUGH THE PARTICULARIZING DANCE OF HIS LANGUAGE OVER THE GENERALLY FAMILIAR PLOT AND THEME AND THROUGH A DISQUIETING INTERPLAY OF COMPASSION COMPLICITY AND CONDEMNATION HE IS EXPLOITING THE POSSIBILITIES OF THE GENRE RATHER THAN JUST GOING ALONG FOR THE RIDE IN EIGHT CHAPTERS HE TAKES US FROM A LEAFY CHICAGO SUBURB TO A RAINSWEPT INTERSTATE HIGHWAY TO A COLORADO MOTEL TO A LAS VEGAS BRIDAL SHOP TO A CALIFORNIA BEACH HOUSE EACH CHAPTER FEELS LIKE A RICH SHORT STORY A WELL POPULATED BREATHING WORLD OF ITS OWN BUT HE IS ALSO TRACING THE PATH OF A DISINTEGRATING BLACK HOLE OF A CHARACTER ONE WYLIE JONES A GUY WHO LOOKED LIKE ANY OTHER GUY LIKE A GOLF PRO OR A SHOE SALESMAN AT THE MALL IN A BLUE POLO SHIRT AND KHAKI TROUSERS DRIVING A GREEN NINETEEN SIXTY NINE FORD GALAXIE WITH A GLOCK NINETEEN PISTOL UNDER THE FRONT SEAT MR. WRIGHT IS AN UNUSUALLY ADROIT NARRATOR IN HIS FINE VIETNAM NOVEL MEDITATIONS IN GREEN NINETEEN EIGHTY THREE HE HANDLED COMPLEX FRAGMENTED STORIES WITH DOVE TAILING MULTIPLE POINTS OF VIEW HE DISPLAYED EQUAL SKILL IN HIS IMPRESSIVE M. THIRTY ONE A FAMILY ROMANCE NINETEEN EIGHTY EIGHT ABOUT A DISINTEGRATING MIDWEST FAMILY OF U. F. O. FREAKS IN GOING NATIVE HE CONSTRUCTS A SERIES OF NARRATIVE AND PSYCHOLOGICAL MICROSYSTEMS AND SHOOTS HIS PROTAGONIST THROUGH THEM LIKE A DESTABILIZING PARTICLE IN A CLOUD CHAMBER NOT THAT ANY OF THESE SYSTEMS IS PARTICULARLY STABLE BEFORE WYLIE PASSES THROUGH THE NOVEL BEGINS WITH A BACKYARD BARBECUE WYLIE AND HIS WIFE AND ANOTHER COUPLE DAIQUIRIS NACHOS MARITAL SNIPING SEXUAL TENSION ALL THE MATERIAL OF A WRY SUBURBAN SLICE OF LIFE BUT THE SNUG SOLIDITY CHARMED EASE TASTEFUL HARBOR OF THE HOUSE IS JUST A DECORATOR'S TRICK THE CHARCOALS GLOW LIKE POISONOUS PINK EGGS THE TV SPEWS IMAGES OF MURDER CHILD ABUSE RABID DYSFUNCTION AND THE LADY OF THE HOUSE WHOSE HAIR HAS BEEN CRUDELY CHOPPED INTO A STYLE OF BASIC ASYMMETRY IS STARTLED WHEN HER HUSBAND WYLIE LATE AGAIN LOOMS UP LIKE THIS HORRIBLE SHAPE AND SOON WITHOUT A WORD OF WARNING WYLIE GOES INSIDE FOR SOMETHING LOOKS IN ON HIS SLEEPING SON AND SIMPLY DISAPPEARS IN THE SUCCEEDING CHAPTERS HE BECOMES A PERSONIFICATION OF QUOTE EVIL A VACUUM THE ABSENCE OF CONNECTIVE TISSUE THE POWER OF BLANKNESS QUOTE ONLY THREE BLOCKS AWAY LIVE MR. C. D. AND LATISHA CHARLEMAGNE TWO SPECTACULARLY SORDID CRACKHEADS BOILING AWAY IN A STATE OF MUTUAL ABRASION WYLIE STEALS THEIR GREEN FORD GALAXIE OUT ON THE HIGHWAY A PSYCHOTIC DRIFTER BUMS A RIDE WITH TOMMY A GUY IN A GREEN FORD GALAXIE WHO CALMLY TELLS HIM HE'S JUST OUT OF JAIL FOR MURDER AND IS DRIVING A STOLEN CAR IN COLORADO TOMMY PICKS UP A NERDY MOTEL OWNER'S REBELLIOUS DAUGHTER AND TURNS THE TABLES ON THE VOYEURISTIC PROTEGE OF A DENVER PORN FILM PRODUCER IN LAS VEGAS TOMMY HITCHES UP WITH A ROULETTE DEALER IN A WHITE LEATHER MINISKIRT WHO LOOKS LIKE A ROLLER DERBY QUEEN BUT THE CENTRAL FOCUS OF THIS CONSPICUOUSLY COMPASSIONATE CHAPTER IS THE LIFE AND LOVES OF THE GIRL BEHIND THE COUNTER IN THE BRIDAL SHOPPE OF THE HAPPY CHAPEL THE BOOK'S TOUR DE FORCE IS AN EIGHTY PAGE NOVELLA WITHIN THE NOVEL A JOURNEY UP A JUNGLE RIVER IN BORNEO UNDERTAKEN BY A RANDY HOLLYWOOD MAN AND WIFE AN ACTRESS IN SCI FI HORROR FLICKS A SUMPTUOUSLY DESCRIBED EXPEDITION TO THE HEART OF DARKNESS A VILLAGE OF FORMER HEAD HUNTERS HALF CORRUPTED BY THE LURE OF OUTBOARD ENGINES AND ATHLETIC SHOES AND TELEVISION SETS BUT STILL ENMESHED IN ANCIENT ANIMISTIC PRACTICES AND A BELIEF IN THE WORLD OF SPIRITS OF BRUTAL HARMONIES OF RITUALIZED AND THEREBY CONTAINED ANXIETIES THE L. A. COUPLE ARE OF COURSE TRANSFORMED BUT THE CHAPTER KEEPS MOVING TOWARD THE VERY DIFFERENT NATIVE BRUTALITY AND DARKNESS THAT AWAIT THEM BACK HOME WHEN TOMMY AND HIS MATE PAY A CALL THE BOOK ENDS A FEW YEARS LATER WITH SOMEONE WHO APPEARS TO BE WYLIE OR TOMMY BUT IS NOW CALLED WILL COMING APART AT THE SEAMS SITTING IN HIS RICH WIFE'S CALIFORNIA BEACH HOUSE GARAGE IN THE WRECK OF A GREEN GALAXIE WITH A GUN LONGING FOR EVERYTHING TO COME TO A STOP IN PARAPHRASE THE NOVEL MAY SOUND TOO FULL OF FAMILIAR ATTITUDES AND EFFECTS AT TIMES THE BAROQUE RHETORIC CAN TEETER TOWARD A KIND OF SENTIMENTAL APOCALYPTIC BOMBAST QUITE BEYOND THE CONTROLLING IRONY THE STRUNG OUT PICARESQUE IS FUELED TOO OFTEN BY SCENES OF EXULTANT NIHILISM A GLEEFUL JACKED UP DEVILS' DANCE OF SEX AND DRUGS BUT PAGE BY PAGE GOING NATIVE IS AN IMPRESSIVE LITERARY PERFORMANCE AND MR. WRIGHT HAS MORE THAN CONFIRMED THE SENSE THAT HE IS A MOST DISTINGUISHED LITERARY PERFORMER CONSUMERS IN DECEMBER EXPANDED THEIR DEBT LOADS FOR THE SEVENTH STRAIGHT MONTH THE FEDERAL RESERVE SAID CONSUMER CREDIT INCREASED AT AN ELEVEN POINT TWO PERCENT ANNUAL RATE IN THE LAST MONTH OF NINETEEN NINETY THREE RISING SEVEN POINT TWO EIGHT BILLION DOLLARS TO SEVEN HUNDRED EIGHTY NINE POINT EIGHT FOUR BILLION DOLLARS THE STRONG RISE CAME ON TOP OF A TEN POINT SEVEN PERCENT ANNUAL RATE INCREASE IN NOVEMBER THE DECEMBER FIGURE WAS SIX POINT SIX PERCENT HIGHER THAN A YEAR EARLIER THE BUYING BINGE DURING DECEMBER WAS FUELED BY LOW INTEREST RATES WHICH ENTICED CONSUMERS TO BUY EVERYTHING FROM CARS TO FURNITURE TO TRIPS ON CREDIT ECONOMISTS HOWEVER EXPECT CONSUMER SPENDING TO SLOW DOWN IN THE FIRST HALF OF THIS YEAR FOLLOWING A MORE THAN FOURTEEN PERCENT ANNUAL RATE OF INCREASED SPENDING FOR DURABLE GOODS PURCHASES IN THE LAST QUARTER OF NINETEEN NINETY THREE THE LARGEST RISE DURING DECEMBER CAME IN A CATCHALL CATEGORY THAT INCLUDES LOANS FOR MOBILE HOMES SCHOOL TUITION AND VACATIONS THAT ROSE AT A SEVENTEEN POINT NINE PERCENT ANNUAL RATE COMPARED WITH A NINE POINT FOUR PERCENT RATE THE MONTH BEFORE GROWTH IN AUTO LOANS OUTSTANDING ROSE AT A SIX POINT FOUR PERCENT PACE IN DECEMBER THAT WAS A BIG SLOWDOWN FROM THE DOUBLE DIGIT GROWTH IN AUTO LOANS IN NOVEMBER AND OCTOBER REVOLVING CREDIT WHICH INCLUDES BANK AND DEPARTMENT STORE CARDS ROSE AT A TEN POINT FOUR PERCENT ANNUAL RATE IN THE LATEST PERIOD UP FROM A NINE POINT THREE PERCENT RATE IN NOVEMBER FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS BLACK AND DECKER CORPORATION SAID IT PLANS TO REDEEM APRIL FIRST ITS ONE HUNDRED MILLION DOLLARS OF EIGHT AND THREE EIGHTHS PERCENT NOTES OUTSTANDING DUE NINETEEN NINETY SEVEN THE NOTES WILL BE REDEEMED AT ONE HUNDRED PERCENT OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST BLACK AND DECKER MAKES HOME AND COMMERCIAL TOOLS AND PRODUCTS AND SUPPLIES INFORMATION SYSTEMS TO GOVERNMENT AND COMMERCIAL CLIENTS COCA COLA PLEASED WITH LAST YEAR'S AD BLITZ FEATURING A DIZZYING NUMBER OF DIFFERENT COMMERCIALS IS REPEATING THE STRATEGY THIS YEAR AND AGAIN RELYING HEAVILY ON THE HOLLYWOOD TALENT FIRM CREATIVE ARTISTS AGENCY OF TWENTY SIX SPOTS FOR COKE CLASSIC C. A. A. PRODUCED TWENTY THREE INTERPUBLIC GROUP'S MCCANN ERICKSON COKE'S AD AGENCY SINCE NINETEEN FIFTY FIVE HAS AN EVEN SMALLER ROLE THIS YEAR THAN IN NINETEEN NINETY THREE IT PRODUCED ONLY ONE COMMERCIAL LAST YEAR IT PRODUCED TWO WHILE NEWCOMER FALLON MCELLIGOTT A MIDSIZE AGENCY IN MINNEAPOLIS CREATED TWO SPOTS THE FALLON ADS BOTH HUMOROUS FOCUS ON COKE'S DISTINCTIVE CONTOUR BOTTLE THE C. A. A. COMMERCIALS INCLUDE AN ARMY OF TALKING ANTS MARCHING OFF TO POLISH OFF A SPILLED BOTTLE OF COKE TALKING ICE CUBES THAT ARE THRILLED COKE IS ABOUT TO POURED ON THEM INSTEAD OF A PRIVATE LABEL COLA AND GOOFY BLACK AND WHITE FOOTAGE TITLED QUOTE HOW TO ASK FOR A DATE QUOTE IN WHICH A TEENAGER ASKS A GIRL TO A QUOTE WEENIE ROAST QUOTE THERE ARE ALSO TECHNICALLY DAZZLING ADS INCLUDING ONE USING LUSH COLORS THAT DISSOLVE INTO SCENES OF A FARMER TAKING A BREAK FROM HARVESTING HIS CROP TO SWIG A COKE AND DANCE WITH HIS WIFE IT IS REMINISCENT OF OKLAHOMA THE CAMPAIGN WILL BEGIN THIS WEEKEND WITH A C. A. A. COMMERCIAL ON THE NATIONAL BASKETBALL ASSOCIATION'S ALL STAR GAME ON GENERAL ELECTRIC'S N. B. C. NETWORK A THIRTY SECOND COMPUTER ANIMATED SPOT TITLED N. B. A. DANCING CLOTHES FEATURES THE JERSEYS OF SUCH N. B. A. PLAYERS AS PATRICK EWING ROBERT PARISH AND HORACE GRANT COKE WILL BE A MAJOR SPONSOR OF THE WINTER OLYMPICS ON C. B. S. AND TWO NEW C. A. A. COMMERCIALS WILL FEATURE THE POPULAR POLAR BEARS FROM LAST YEAR'S CAMPAIGN ON THE LUGE AND SKI JUMPING LAST YEAR COKE INTRODUCED FIFTEEN SPOTS APPEARING ONE HUNDRED FIVE TIMES ON SEVENTEEN BROADCAST AND CABLE OUTLETS IN ONE WEEK THIS YEAR'S BLITZ WILL BE VERY SIMILAR SAYS CHARLES FRUIT COKE'S VICE PRESIDENT DIRECTOR OF MEDIA ALTHOUGH HE DECLINES TO BE SPECIFIC COKE'S CHALLENGE WITH ITS SECOND CAMPAIGN FROM C. A. A. IS QUITE DIFFERENT FROM LAST YEAR'S IN NINETEEN NINETY THREE IT NEEDED TO REVITALIZE ITS ADVERTISING AND OVERCOME THE PERCEPTION THAT THE HIP SOFT DRINK FOR THE YOUTH MARKET IS PEPSI THIS YEAR COKE NEEDS TO CONTINUE THE MOMENTUM CREATED BY THE NINETEEN NINETY THREE COMMERCIALS WHICH WERE CONSIDERED FRESH AND VIBRANT THE NEW CAMPAIGN IN WHICH LAST YEAR'S ONE WORD SLOGAN ALWAYS AND CATCHY JINGLE THERE'S ALWAYS COCA COLA ARE USED FREQUENTLY IS THE FIRST FROM SERGIO ZYMAN SINCE HIS RETURN TO COKE AS SENIOR VICE PRESIDENT AND CHIEF MARKETING OFFICER LAST AUGUST MR. ZYMAN WHO EARNED THE NICKNAME AYA COLA FOR HIS REPUTATION FOR BEING SOMETIMES OVERLY AGGRESSIVE HAD SOME CHOICE WORDS FOR HIS MAIN RIVAL ASKED DURING A NEWS CONFERENCE FOR HIS OPINION OF A PEPSI AD SHOWING A CHIMP DRINKING COKE MR. ZYMAN CALLED THE COMMERCIAL QUOTE DATED THE SAME OLD THING QUOTE PEPSI HE SAID IS FIXATED ON COKE'S REAR FENDER WE DON'T NEED TO DO COMPARATIVE ADVERTISING A PEPSI SPOKESWOMAN SAYS LET THE GAMES BEGIN WE MUST BE DOING SOMETHING RIGHT WE DID SOME POST SUPER BOWL GAME POLLING OF CONSUMERS AND PEPSI WAS THE MOST RECALLED BRAND AND THEIR FAVORITE OVERALL ADVERTISING DURING THE SUPER BOWL WAS THE CHIMP SPOT COKE'S MR. ZYMAN SAYS IT HAS BEEN DECADES SINCE WE HAVE BEEN THIS PLEASED WITH OUR ADVERTISING THE QUOTE ALWAYS QUOTE CAMPAIGN QUOTE MOVED THE SALES NEEDLE QUOTE HE SAYS BUT HE DECLINES TO BE SPECIFIC THE SOFT DRINK CATEGORY HAS BEEN SLUGGISH LATELY WITH CONSUMERS GRAVITATING TO ALTERNATIVE BEVERAGES SUCH AS ICED TEA AND SO CALLED NEW AGE DRINKS INCLUDING FRUIT FLAVORED CARBONATED WATER BUT LAST YEAR COKE CLASSIC'S SHARE OF THE MARKET ACTUALLY GREW ALBEIT MARGINALLY TO TWENTY POINT ONE PERCENT FROM TWENTY PERCENT A YEAR EARLIER ACCORDING TO BEVERAGE DIGEST A NEWSLETTER IN OLD GREENWICH CONNECTICUT IN COMPARISON NUMBER TWO PEPSI FELL TO SEVENTEEN POINT SEVEN PERCENT FROM EIGHTEEN PERCENT AND DIET COKE AT NUMBER THREE FELL TO EIGHT POINT NINE PERCENT FROM NINE POINT ONE PERCENT WITH THE NEW ADS MANY OF WHICH WILL BE SEEN WORLD WIDE COKE IS TARGETING SOME CONSUMERS IT HERETOFORE IGNORED FOR INSTANCE ONE SPOT IS AIMED AT PEOPLE WHO DRINK THE CAFFEINE LADEN PRODUCT AFTER MIDNIGHT AND MAY FIND IT AS DIFFICULT TO GET TO SLEEP AS THOSE WHO IMBIBE COFFEE AFTER DINNER THE COMMERCIAL IS IN FRENCH ALTHOUGH AN ENGLISH LANGUAGE VERSION WILL SUBSEQUENTLY AIR IN THE U. S. AND FEATURES LOTS OF LEATHER AFTER HOUR CLUBS AND MOTORCYCLES ANOTHER COMMERCIAL THAT EASILY FITS INTO LATE NIGHT PROGRAMMING IS EYE CATCHING AND APPROPRIATELY TITLED HYPNOSIS THE AMUSING SPOT SHOWS A SWINGING COKE LOGO IN FRONT OF VIDEO MONITORS AND A PAIR OF EYES THE MONOTONE VOICE OVER REPEATS THE ORDER GO TO THE STORE AND GET LOTS OF COCA COLA DISREGARD ALL OTHER SOFT DRINK ADVERTISING MISSING FROM THIS YEAR'S ROSTER OF SPOTS ARE BIG NAME C. A. A. CLIENTS WHO DIRECTED SOME OF LAST YEAR'S ADS FOR INSTANCE RICHARD DONNER LETHAL WEAPON AND ROB REINER WHEN HARRY MET SALLY AND A FEW GOOD MEN WERE AMONG DIRECTORS TO PARTICIPATE IN LAST YEAR'S COKE CAMPAIGN THIS YEAR'S CROP OF DIRECTORS INCLUDES JOHN SINGLETON BOYZ N. THE HOOD AND JOAN GRATZ WHO WON AN ACADEMY AWARD FOR THE ANIMATED SHORT SUBJECT FILM MONA LISA DESCENDING A STAIRCASE THE ENTIRE QUOTE ALWAYS QUOTE CAMPAIGN IS QUOTE INTRUSIVE QUOTE SAYS JESSE MEYERS PUBLISHER OF BEVERAGE DIGEST WHO PREVIEWED THE ADS YESTERDAY THAT'S GOOD HE SAYS IT MAKES YOU STOP AND LOOK AT THEM IN WHAT HAS TO BE ENCOURAGING NEWS TO FALLON MCELLIGOTT ITS ADS RECEIVED THE LOUDEST LAUGHTER AT A COKE NEWS CONFERENCE IN MANHATTAN ITS ADS DON'T USE QUICK EDITS AND DON'T HAVE A WISE GUY ATTITUDE INSTEAD THEY HAVE THE DRY MIDWEST SENSIBILITY THAT FALLON IS KNOWN FOR IN ONE AD A ROUND BANANA A SQUARE EGG AND GREEN PEAS IN A RECTANGULAR CASE ARE USED TO ILLUSTRATE HOW CERTAIN PRODUCTS CAN COME ONLY IN CERTAIN PACKAGES JUST LIKE COKE IN ITS TRADEMARK BOTTLE THE SOLE MCCANN SPOT ISN'T VERY DISTINCTIVE IT SHOWS A PAIR OF HANDS SHUFFLING A DECK OF CARDS REVEALING IMAGES OF A COKE BOTTLE BEING POURED INTO A GLASS MR. ZYMAN SAYS ANOTHER AGENCY WIEDEN AND KENNEDY IN PORTLAND OREGON WHICH HANDLES NIKE ADS IS ON BOARD TO WORK ON NEW PROJECTS FOR ME HE WOULDN'T ELABORATE ALTHOUGH INDUSTRY SPECULATION IS THAT COCA COLA PLANS TO INTRODUCE SUCH NEW PRODUCTS AS A BEVERAGE WITH A CALORIE COUNT BETWEEN DIET COKE AND COKE CLASSIC NOT ONLY HAS MCCANN'S ROLE IN CREATING DOMESTIC ADVERTISING FOR COKE DIMINISHED BUT THE AGENCY'S INTERNATIONAL TURF ALSO IS UNDER SIEGE FROM ANOTHER BIG GLOBAL NETWORK CLOSELY HELD D'ARCY MASIUS BENTON AND BOWLES D. M. B. AND B. HAS WON TWO NEW ASSIGNMENTS FROM THE BIG CLIENT ONE DOMESTIC AND ONE OVERSEAS ACCORDING TO INDUSTRY EXECUTIVES THE WIN FOLLOWS D. M. B. AND B'S MOVE LAST MONTH TO REORGANIZE ITS SPANISH LANGUAGE UNITS INTO AN INTERNATIONAL NETWORK CALLED D. M. B. AND B. AMERICAS D. M. B. AND B. OFFICIALS COULDN'T BE REACHED COKE DECLINED TO COMMENT ACCOUNTS PACTEL CORPORATION THE WALNUT GROVE CALIFORNIA CELLULAR PHONE AND PAGING SERVICE COMPANY TAPPED CHIAT SLASH DAY OF VENICE CALIFORNIA TO CREATE CORPORATE ADVERTISING TO SUPPORT ITS PLANNED SPINOFF FROM PARENT PACIFIC TELESIS GROUP ESTIMATED BILLINGS ON THE NEW ACCOUNT ARE FIFTEEN MILLION DOLLARS CANANDAIGUA WINE COMPANY CANANDAIGUA N. Y. TAPPED TRONE ADVERTISING GREENSBORO N. C. TO CREATE ADS FOR PAUL MASSON WINES BILLINGS WEREN'T DISCLOSED WHITTLE A. C. NIELSEN WILL START MEASURING THE AUDIENCE FOR WHITTLE COMMUNICATIONS' SPECIAL REPORT NETWORK WHICH BRINGS PROGRAMMING AND ADS TO PATIENTS IN THE WAITING ROOMS OF FAMILY PHYSICIANS NIELSEN EMPLOYEES WILL VISIT DOCTORS' OFFICES TO COUNT PATIENTS AND SEE WHETHER TELEVISION SETS ARE TURNED ON AND PUBLICATIONS ARE AVAILABLE N. B. C. ON LINE GENERAL ELECTRIC'S N. B. C. NETWORK SAID IT PLANS TO LAUNCH ITS OWN INTERACTIVE ON LINE SERVICE THIS SPRING ON THE PRODIGY AND AMERICA ON LINE COMPUTER NETWORKS THE ELECTRONIC SERVICE FIRST REPORTED IN ADVERTISING AGE ALSO WILL CARRY MERCHANDISE FROM THE N. B. C. STORE SAID ALAN COHEN SENIOR VICE PRESIDENT OF MARKETING PRODIGY IS A UNIT OF INTERNATIONAL BUSINESS MACHINES CORPORATION AND SEARS ROEBUCK AND COMPANY A. C. AND R. AD AGENCY A. C. AND R. ADVERTISING PREVAILED IN A NINETEEN NINETY ONE AGE DISCRIMINATION SUIT FILED IN FEDERAL COURT IN LOS ANGELES BY PATRICK KING A FORMER WEST COAST EXECUTIVE AT THE AGENCY WHO HAD CHARGED HE EFFECTIVELY WAS DISMISSED BECAUSE HE WAS OVER FIFTY STILL PENDING AGAINST THE SAATCHI AND SAATCHI UNIT ARE THREE OTHER AGE DISCRIMINATION SUITS MR. KING AND HIS ATTORNEYS COULDN'T BE REACHED ALASKA AIR GROUP INCORPORATED REPORTED HIGHER TRAFFIC FOR ITS UNITS ALASKA AIRLINES AND HORIZON AIR IN JANUARY ALASKA AIRLINES' REVENUE PASSENGER MILES INCREASED FORTY PERCENT TO FOUR HUNDRED EIGHTY EIGHT POINT ONE MILLION FROM THREE HUNDRED FORTY EIGHT POINT SEVEN MILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED WAS FIFTY SIX POINT FOUR PERCENT COMPARED WITH FORTY SEVEN POINT SEVEN PERCENT A YEAR EARLIER HORIZON AIR FLEW FORTY FOUR POINT FOUR MILLION REVENUE PASSENGER MILES IN JANUARY UP FIFTEEN PERCENT FROM THIRTY EIGHT POINT FIVE MILLION FLOWN DURING THE PERIOD LAST YEAR LOAD FACTOR ROSE TO FIFTY SIX PERCENT FROM FIFTY TWO POINT FIVE PERCENT A YEAR EARLIER PRECIOUS METALS PRICES TUMBLED ON ANTI INFLATIONARY SENTIMENT LEFT OVER FROM THE FEDERAL RESERVE'S TIGHTENING OF SHORTTERM INTEREST RATES LAST WEEK AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY FELL SEVEN DOLLARS AND SIXTY CENTS TO THREE HUNDRED EIGHTY DOLLARS AND SEVENTY CENTS AN OUNCE WHILE THE MARCH SILVER FUTURES CONTRACT WAS DOWN EIGHTEEN POINT SEVEN CENTS TO FIVE DOLLARS AND TWENTY FOUR CENTS AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE THE PRICE OF THE ACTIVELY TRADED APRIL PLATINUM FUTURES CONTRACT DECLINED SIX DOLLARS AND TEN CENTS TO THREE HUNDRED NINETY ONE DOLLARS AND FORTY CENTS AN OUNCE QUOTE THIS WAS A CONTINUATION OF LAST FRIDAY'S NEWS QUOTE SAID IAN MACDONALD CHIEF OF PRECIOUS METALS TRADING AT CREDIT SUISSE THE FED'S RAISING OF INTEREST RATES IS BEING INTERPRETED AS A WARNING SHOT ACROSS THE BOWS OF ANYBODY EXPECTING INFLATION TO RETURN BECAUSE OF THE TIGHTENING COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY AGGRESSIVELY LIQUIDATED THEIR LONG POSITIONS IN PRECIOUS METALS FUTURES CONTRACTS OR WAGERS THAT PRICES WOULD INCREASE ANALYSTS SAID THE HEAVY SELLING BY THESE INFLUENTIAL INVESTORS HELPED TO PUSH PRICES LOWER THROUGHOUT THE TRADING DAY ALSO PRESSURING THE MARKET LOWER WAS STRONG OVERNIGHT SELLING IN FAR EAST METALS MARKETS BY MIDDLE EASTERN INVESTOR SYNDICATES SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH BUYING BY THESE SYNDICATES HAS HELPED TO SUPPORT METALS PRICES FOR MONTHS BUT AS THEIR DEMAND FOR METALS WANES PRICES TEND TO TRICKLE LOWER AS WELL ALTHOUGH MOST ANALYSTS STILL EXPECT GOLD AND OTHER PRECIOUS METALS PRICES TO RISE OVER THE LONG TERM THE PRICES ARE HAVING TROUBLE BREAKING OUT OF THEIR LONGSTANDING TRADING RANGE OF THREE HUNDRED EIGHTY DOLLARS TO THREE HUNDRED NINETY DOLLARS AN OUNCE THE GOLD PRICE LEVEL OF FOUR HUNDRED DOLLARS AN OUNCE HAS PROVEN TO BE A TREMENDOUS PSYCHOLOGICAL BARRIER BECAUSE EACH TIME THE METAL NEARS THAT LEVEL MAJOR INDUSTRIAL USERS SUCH AS THE JEWELRY INDUSTRY STOP BUYING MR. MACDONALD SAID CONVERSELY ANALYSTS EXPECT THE CURRENT DOWNDRAFT OF GOLD FUTURES PRICES TO STOP WHEN AND IF THE METAL REACHES THREE HUNDRED SEVENTY FIVE DOLLARS AN OUNCE BECAUSE AT THAT LEVEL INDUSTRIAL USERS HAVE TENDED TO COME BACK TO THE MARKET AS BUYERS COTTON FUTURES PRICES PLUNGED ON NERVOUSNESS ABOUT THE PERFORMANCE OF THE U. S. STOCK MARKET AT NEW YORK'S COTTON EXCHANGE COTTON FOR MARCH DELIVERY FELL ONE POINT SIX THREE CENTS TO SEVENTY FIVE POINT SIX OH CENTS A POUND FRIDAY'S NINETY SIX POINT DECLINE IN THE DOW JONES INDUSTRIAL AVERAGE TOUCHED OFF A HEAVIER THAN NORMAL ROUND OF PROFIT TAKING SAID SANDRA KAUL SENIOR ANALYST FOR SMITH BARNEY SHEARSON THE CORRELATION BETWEEN STOCK PRICES AND COTTON PRICES IS OFTEN QUITE STRONG MS. KAUL SAID BECAUSE THE TEXTILE INDUSTRY IS SO RELIANT ON THE GENERAL BUSINESS MOOD HERE IN THE U. S. SHE NEVERTHELESS BELIEVES THAT SUPPLY AND DEMAND FUNDAMENTALS FOR COTTON REMAIN STRONG FOR INSTANCE MANY IN THE INDUSTRY NOW EXPECT U. S. EXPORTS TO RISE TO AS MUCH AS SEVEN MILLION BALES FROM CURRENT PROJECTIONS OF SIX POINT TWO MILLION BALES BECAUSE OF GLOBAL SHORTAGES OF HIGH QUALITY COTTON ENERGY OIL FUTURES PRICES SETTLED LOWER AS A BREAK IN PROLONGED COLD WEATHER IN THE U. S. NORTHEAST TRIGGERED A DECLINE IN HEATING OIL PRICES OVER THE PAST TWO WEEKS THE AMERICAN PETROLEUM INSTITUTE HAD REPORTED STEEP DROPS IN DISTILLATE STOCKS COMPRISING HEATING OIL AND DIESEL FUEL CAUSING HEATING OIL PRICES TO SPIKE BUT AS TEMPERATURES MODERATED ACROSS MUCH OF THE U. S. INCLUDING THE NORTHEAST THE WORLD'S LARGEST HEATING OIL MARKET PRICES HAVE SLIPPED MARCH HEATING OIL FUTURES DECLINED BY THREE POINT SIX CENTS A GALLON OVER THE PAST THREE SESSIONS AND THE DECLINE IN PRODUCT PRICES HAS CAUSED CRUDE OIL PRICES TO FALL AS WELL QUOTE HEATING OIL TOOK US UP AND HEATING OIL IS TAKING US DOWN QUOTE ONE TRADER SAID ADDING THAT MARKET FUNDAMENTALS APART FROM THE WEATHER LOOK WEAK CRUDE OIL FOR MARCH DELIVERY FELL BY THIRTY EIGHT CENTS A BARREL TO FIFTEEN DOLLARS AND TWENTY FIVE CENTS A BARREL AFTER TRADING IN A RANGE OF FIFTEEN DOLLARS AND FIFTEEN CENTS TO FIFTEEN DOLLARS AND SIXTY THREE CENTS MICHAEL BAKER CORPORATION SAID ITS INTELCOM SUPPORT SERVICES INCORPORATED UNIT WON A THIRTEEN MILLION DOLLAR CONTRACT TO OPERATE AND MAINTAIN THE NAVY'S RADIO TRANSMITTING FACILITIES IN LUALUALEI HAWAII AND BARRIGADA GUAM THE COMPANY SAID THE CONTRACT IS FOR NINE MONTHS WITH FOUR OPTION YEARS INTELCOM WILL BE RESPONSIBLE FOR OPERATION AND MAINTENANCE OF HIGH POWERED HIGH FREQUENCY TRANSMITTERS AT BOTH FACILITIES MICHAEL BAKER SAID KELLOGG COMPANY THE NATION'S LARGEST MAKER OF READY TO EAT CEREAL IS RAISING PRICES ON MANY OF ITS POPULAR BRANDS FOR THE SECOND TIME IN SIX MONTHS KELLOGG NOTIFIED GROCERS BY LETTER YESTERDAY THAT IT IS RAISING PRICES ON THIRTY EIGHT CEREALS AN AVERAGE OF TWO POINT SIX PERCENT CORN FLAKES AMONG ITS BIGGEST SELLERS WILL INCREASE NEARLY SEVEN PERCENT FROSTED MINI WHEATS WILL GO UP FOUR PERCENT RICE KRISPIES AND FROSTED FLAKES ABOUT THREE PERCENT EACH AND FROOT LOOPS TWO POINT FIVE PERCENT NOT ALL OF KELLOGG'S CEREALS ARE AFFECTED THE MOVE IS SURPRISING IN THAT IT RUNS COUNTER TO RECENT PRICE ROLLBACKS BY SOME NATIONAL BRAND MANUFACTURERS INCLUDING THOSE OF CIGARETTES AND DISPOSABLE DIAPERS IN THE FACE OF STRONG PRIVATE LABEL COMPETITION MOREOVER WHILE CEREAL MAKERS FOR YEARS RAISED PRICES FASTER THAN THE INFLATION RATE WITHOUT HURTING SALES LATELY SOME INCLUDING KELLOGG HAVE SEEN THEIR DOMESTIC MARKET SHARE DECLINE WHILE IT IS THE MARKET LEADER KELLOGG MAY ENCOUNTER COMPETITIVE RESISTANCE THE LAST TIME KELLOGG RAISED PRICES AN AVERAGE OF TWO POINT ONE PERCENT LAST AUGUST ONLY THE POST CEREALS DIVISION OF PHILIP MORRIS COMPANIES KRAFT GENERAL FOODS FOLLOWED SUIT PREVIOUSLY A PRICE INCREASE BY ONE CEREAL MAKER WAS SOON TAKEN BY EVERYONE BUT AS SOME BRANDS APPROACH FIVE DOLLARS A BOX COMPANIES HAVE WORRIED ABOUT CONSUMER STICKER SHOCK AS WELL AS THE QUESTIONABLE ECONOMICS OF OFFERING DISCOUNT COUPONS THAT CONSUMERS CAN USE TO CANCEL OUT PRICE INCREASES NEARLY HALF THE CEREAL PURCHASES IN THE U. S. ARE MADE WITH COUPONS AND IN STORE DEALS ARE COMMON A KELLOGG SPOKESMAN SAID YESTERDAY THE COMPANY DOESN'T INTEND TO OFFER MORE COUPONS TO OFFSET THE HIGHER PRICES ALTHOUGH HE ADDED THAT QUOTE WE HAVE THE WILL TO PROTECT OUR MARKET SHARE QUOTE ONLY LAST MONTH THE BATTLE CREEK MICHIGAN COMPANY'S CHAIRMAN NOTING THAT FOURTH QUARTER ADVERTISING AND PROMOTIONAL EXPENDITURES WERE ONE HUNDRED MILLION DOLLARS HIGHER THAN IN THE NINETEEN NINETY TWO QUARTER SAID KELLOGG HOPED TO MODERATE PROMOTIONAL SPENDING IN THE U. S. GENERAL MILLS INCORPORATED THE NATION'S NUMBER TWO CEREAL COMPANY WITH ABOUT TWENTY FIVE PERCENT OF THE MARKET COMPARED WITH KELLOGG'S THIRTY SEVEN PERCENT AS MEASURED BY VOLUME DECIDED NOT TO FOLLOW LAST SUMMER'S KELLOGG INCREASE CONTENDING THAT THE SUBSEQUENT COUPON DISTRIBUTION NEEDED TO KEEP CUSTOMERS COULD HAVE COST MORE THAN THE COMPANY WOULD HAVE REALIZED FROM THE HIGHER PRICE GENERAL MILLS HAD NO IMMEDIATE COMMENT ON KELLOGG'S DECISION SUCH PRICE INCREASES ALSO CREATE A MARKETING OPPORTUNITY FOR PRIVATE LABEL OR HOUSE BRAND CEREALS WHICH CAN FOCUS ON THE WIDENING GAP BETWEEN THEIR PRODUCTS AND THOSE OF THE NATIONAL BRANDS TODAY PRIVATE LABEL CEREALS HAVE ABOUT A NINE PERCENT SHARE OF THE U. S. MARKET KELLOGG ATTRIBUTED ITS PRICING MOVE TO VARIETY OF COST FACTORS INCLUDING HIGHER PRICES FOR SUCH RAW MATERIALS AS WHEAT CORN AND RICE THE COMPANY'S MARGINS ALSO HAVE COME UNDER PRESSURE AS IT SPENT AGGRESSIVELY TO MAINTAIN OR INCREASE ITS MARKET SHARE COSTS HAVE INCREASED PARTICULARLY GRAIN WHICH MAY MAKE COMPETITORS FOLLOW THIS INCREASE PRUDENTIAL SECURITIES FOOD ANALYST JOHN M. MCMILLIN ADVISED CLIENTS YESTERDAY BUT IN AN INTERVIEW HE SAID WHILE THERE HAVE BEEN SOME INGREDIENT COST INCREASES I'D HAVE RATHER SEEN SOME MARKETING RATIONALIZATION RATHER THAN MORE LIST PRICE INCREASES IN REPORTING RECORD NINETEEN NINETY THREE EARNINGS KELLOGG'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ARNOLD G. LANGBO CITED EXTREMELY COMPETITIVE CONDITIONS IN THE U. S. AND A HIGH LEVEL OF MARKETING ACTIVITY INTERNATIONALLY FOR THE HIGHER LEVEL OF PROMOTION EXPENDITURES INDEED IN RECENT MONTHS KELLOGG HAS SEEN SOME EROSION IN ITS OVERSEAS CEREAL MARKET SHARE AS CEREAL PARTNERS WORLDWIDE A JOINT VENTURE BETWEEN GENERAL MILLS AND NESTLE S. A. HAS MOVED INTO THE MEXICAN AND ASIAN MARKETS A SPOKESMAN SAID HE KNEW OF NO RECENT PRICE INCREASES BY KELLOGG OUTSIDE THE U. S. IF ITS LATEST DOMESTIC PRICE INCREASE ISN'T FOLLOWED BY COMPETITORS KELLOGG MAY HAVE NO CHOICE BUT TO STEP UP MARKETING EXPENDITURES TO HOLD ITS SHARE BUT THE COMPANY IS CALCULATING THAT THAT WON'T BE NECESSARY OUR INTENT IS THAT PROMOTIONAL SPENDING WILL BE DOWN ON EXISTING PRODUCTS THE SPOKESMAN SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY KELLOGG STOCK FELL TWENTY FIVE CENTS OR ZERO POINT FIVE PERCENT TO CLOSE AT FIFTY TWO DOLLARS AND TWENTY FIVE CENTS A SHARE THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED FEBRUARY FOURTH NINETEEN NINETY FOUR 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 ASHLAND CITY KENTUCKY WILL REDEEM ON MARCH FIRST NINETEEN NINETY FOUR THREE MILLION EIGHT HUNDRED THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS FIVE POINT EIGHT OH PERCENT ENVIRONMENTAL IMPROVEMENT REVENUE BONDS NINETEEN SEVENTY EIGHT SERIES DUE MARCH FIRST TWO THOUSAND THREE NATIONAL CITY BANK KENTUCKY CLEVELAND IS TRUSTEE ILLINOIS ENVIRONMENTAL FACILITIES FINANCING AUTHORITY WILL REDEEM ON MARCH ELEVENTH NINETEEN NINETY FOUR THE FOLLOWING POLLUTION CONTROL REVENUE BONDS ITS EIGHT AND THREE EIGHTHS PERCENT BONDS SERIES NINETEEN SEVENTY NINE DUE NOVEMBER FIRST TWO THOUSAND FOUR AND ITS EIGHT AND ONE HALF PERCENT BONDS SERIES NINETEEN SEVENTY NINE DUE NOVEMBER FIRST TWO THOUSAND NINE THE AUTHORITY WILL ALSO REDEEM ON APRIL FIRST NINETEEN NINETY FOUR ITS NINE AND THREE QUARTERS PERCENT POLLUTION CONTROL REVENUE BONDS SERIES NINETEEN EIGHTY THREE DUE APRIL FIRST TWO THOUSAND THIRTEEN FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE NU KOTE HOLDING INCORPORATED DALLAS DAVID F. BRIGANTE CHIEF EXECUTIVE OFFICER OF THIS MAKER OF PRINTING PRODUCTS WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR. BRIGANTE FORTY ONE YEARS OLD SUCCEEDS HUBBARD C. HOWE SIXTY FIVE WHO WAS NAMED VICE CHAIRMAN THE COMPANY ALSO NAMED JOHN P. ROCHON A DIRECTOR INCREASING THE SIZE OF THE BOARD TO EIGHT MEMBERS MR. ROCHON FORTY TWO IS CHIEF EXECUTIVE OF MARY KAY CORPORATION THE INVESTMENT WORLD DEMONSTRATED AGAIN HOW INTERCONNECTED IT IS AS STOCK MARKETS FROM MANILA TO MADRID TUMBLED AS MUCH AS SEVEN PERCENT FOLLOWING FRIDAY'S TWO POINT FOUR PERCENT DECLINE ON WALL STREET NONETHELESS MONEY MANAGERS AND EQUITY STRATEGISTS REMAIN BASICALLY OPTIMISTIC QUOTE INVESTORS SLIGHTLY OVERREACTED TO SOMETHING THAT HAD BEEN WELL FORECAST WELL THOUGHT ABOUT AND SHOULD HAVE BEEN WELL DISCOUNTED QUOTE SAID ANDREW GARTHWAITE A GLOBAL STRATEGIST AT S. G. WARBURG AND COMPANY IN LONDON ALL WE'RE TALKING ABOUT HERE IS A TRADING DECLINE IN THE MARKET NOT A FUNDAMENTAL SHIFT IN VIEW THE MULTIMARKET DROPS REPRESENT MORE OF A CORRECTION THAN A COLLAPSE SAID FRANCIS WONG A FUND MANAGER AT PRUDENTIAL ASIA FUND MANAGEMENT LIMITED IN HONG KONG IF SO IT WAS A HARD SMACK KIND OF CORRECTION PARTICULARLY IN ASIA'S SMALLER STOCK MARKETS EUROPEAN STOCK MARKETS STARTED OFF ON A SIMILARLY DISMAL NOTE BUT RECOVERED FROM THEIR LOWS AFTER INVESTORS SAW THAT U. S. SHARE PRICES IN NEW YORK WERE REBOUNDING BASED ON THE DOW JONES INDEX THE BRITISH STOCK MARKET FELL ONE POINT THREE PERCENT GERMANY TWO POINT FOUR PERCENT AND FRANCE ONE POINT SEVEN PERCENT MEANWHILE SWITZERLAND SPAIN THE NETHERLANDS SWEDEN AND NORWAY WERE OFF BETWEEN TWO PERCENT AND TWO POINT EIGHT PERCENT ITALY FELL ONE POINT THREE PERCENT AT ONE POINT GERMAN SHARES WERE OFF AS MUCH AS THREE POINT FOUR PERCENT AND BRITISH AS MUCH AS TWO POINT NINE PERCENT WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED FIFTEEN POINT EIGHT THREE DOWN ZERO POINT EIGHT ONE REFLECTING THE LOWER ASIA SLASH PACIFIC AND EUROPEAN MARKETS AND HIGHER AMERICAN MARKETS COAL STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED SEVEN POINT NINE SEVEN UP THREE POINT SEVEN THREE OR THREE POINT SIX PERCENT WITH CYPRUS AMAX MINERALS OF THE U. S. POSTING A NINE POINT FIVE PERCENT GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT TWO HUNDRED FIFTEEN POINT TWO EIGHT DOWN ELEVEN POINT NINE SIX OR FIVE POINT THREE PERCENT WITH ASIATIC DEVELOPMENT OF MALAYSIA SLIDING NINE PERCENT IN LOCAL CURRENCY EVEN BEFORE THE FEDERAL RESERVE'S MODEST INTEREST RATE INCREASE ON FRIDAY AND SUBSEQUENT U. S. STOCK MARKET SELL OFF MARKETS IN ASIA AND EUROPE WERE FRAGILE AFTER SOARING LAST YEAR ON FAST ECONOMIC GROWTH IN ASIA AND IN EUROPE ON FALLING INTEREST RATES AND VERY OPTIMISTIC CORPORATE EARNINGS FORECASTS STOCKS WERE TRADING AT VALUATIONS THAT STOOD WELL ABOVE HISTORIC NORMS IN EARLY JANUARY STOCK MARKETS IN HONG KONG SINGAPORE MALAYSIA THAILAND THE PHILIPPINES AND INDONESIA CLIMBED TO RECORDS ONLY TO SUFFER SEVERE SETBACKS LATE IN THE MONTH LAST WEEK THOSE IN BRITAIN FRANCE SWITZERLAND ITALY HOLLAND SPAIN SWEDEN AND DENMARK ALSO ROSE TO HIGHS BUT NOT WITH MUCH VIGOR ON THURSDAY THEY FELL AFTER GERMANY'S CENTRAL BANK FAILED TO LOWER INTEREST RATES AS MANY INVESTORS HAD EXPECTED SOME ANALYSTS STILL WORRY THAT THE DOLLAR COULD RISE TO LEVELS THAT WOULD MAKE THE BUNDESBANK RELUCTANT TO CUT INTEREST RATES FOR FEAR OF REIGNITING INFLATION THAT'S BECAUSE MANY BASIC MATERIALS SUCH AS OIL ARE PRICED IN DOLLARS THAT IS A RISK FOR STOCK MARKETS IN GERMANY AND FRANCE IN PARTICULAR SAID MARCUS GRUBB AN INTERNATIONAL EQUITY STRATEGIST AT SALOMON BROTHERS INTERNATIONAL IN LONDON ANOTHER RISK IS THAT INSTEAD OF JUST REASSURING FINANCIAL MARKETS OF ITS ANTIINFLATION CREDENTIALS THE FED COULD BE SIGNALING A SHARP RISE IN INFLATION IN THE U. S. WHICH COULD DELAY FURTHER FALLS IN GLOBAL INTEREST RATES SAID MR. GRUBB IT COULD ALSO CHOKE OFF THE ESTIMATED ONE BILLION DOLLARS TO TWO BILLION DOLLARS A MONTH OF U. S. MUTUAL FUND INVESTMENT GOING INTO EUROPEAN STOCKS MUCH OF THAT MONEY HAS ALSO BEEN INVESTED IN FAST GROWING ASIAN ECONOMIES WHERE THE MONETARY POLICIES OF SEVERAL COUNTRIES ARE EITHER DIRECTLY OR INDIRECTLY TIED TO THAT OF THE U. S. QUOTE PEOPLE OUT HERE WILL LOOK TO WALL STREET FOR DIRECTION QUOTE SAID RICHARD COHEN AN EQUITY SALESMAN AT BARING SECURITIES LIMITED IN SINGAPORE EVEN WITHOUT DIRECT FINANCIAL OR POLICY LINKS YOU CAN GET CONTAGION MARKETS REACTING TO EACH OTHER FOR REASONS OTHER THAN THE FUNDAMENTALS SAID SUSHIL WADHWANI DIRECTOR OF BRITISH AND EUROPEAN EQUITY STRATEGY AT GOLDMAN SACHS INTERNATIONAL IN LONDON EVEN IF INDIVIDUAL INVESTORS DO NOT SELL EQUITIES WHEN INTEREST RATES START TO RISE SHARE PRICES MAY NEVERTHELESS FALL BECAUSE OTHER INVESTORS MISTAKENLY BELIEVE THAT INDIVIDUAL INVESTORS WERE ABOUT TO SELL HE WARNED THE DANGER WITH THAT KIND OF SELLING IS THAT IF IT GETS OUT OF HAND IT CAN BECOME SELF JUSTIFYING BUT DISMISSING SUCH A RISK AS UNLIKELY HE SAID HE VIEWED THE SELL OFF AS A BUYING OPPORTUNITY SIMILARLY MR. GRUBB CALLED THE STOCK DECLINES A VERY IRRATIONAL REACTION IN THE MARKETS HE NOTED THAT ECONOMIC GROWTH ESPECIALLY IN CONTINENTAL EUROPE WAS MUCH SLOWER THAN IN THE U. S. AND PREDICTED THAT INTEREST RATES IN EUROPE INCLUDING GERMANY WERE HEADED LOWER IN ADDITION MR. GRUBB NOTED THAT EVEN WITH THE FED'S TIGHTENING BANK DEPOSIT RATES IN THE U. S. ARE STILL VERY LOW QUOTE SO MUTUAL FUND CASH FLOWS ARE GOING TO CONTINUE TO BE STRONG EVEN IF THEY ARE REDUCED OVER THE COURSE OF THE YEAR QUOTE HE SAID PESSIMISTIC ABOUT THE PROSPECTS FOR GERMAN STOCKS ALONG WITH MANY OTHER STRATEGISTS MR. GRUBB SAID HE WAS DRAWN TO EUROPEAN STOCK MARKETS WHERE AUTHORITIES ARE LIKELY TO EASE WITHOUT WAITING FOR THE BUNDESBANK AND THAT WILL ALSO BENEFIT FROM THE DOLLAR RALLY THE UNITED KINGDOM SWITZERLAND SWEDEN AND SPAIN MEANWHILE GOLDMAN SACHS IS TELLING CLIENTS THAT EUROPE AND JAPAN SHOULD SUFFER LEAST IN ALL THIS SAID MR. WADHWANI NEXT IN THE PECKING ORDER SHOULD BE THE U. S. AND LATIN AMERICA HE SAID THE WORLD'S MOST VULNERABLE STOCK MARKETS WERE THOSE IN ASIA EXCEPT FOR JAPAN ESSENTIALLY BECAUSE THEIR INTEREST RATES ARE LINKED DIRECTLY TO THE U. S. ONE OF MR. GARTHWAITE'S FAVORITE STOCK MARKETS IS BRITAIN WHICH SELLING AT SIXTEEN POINT THREE TIMES ESTIMATED NINETEEN NINETY FOUR EARNINGS IS AMONG EUROPE'S CHEAPEST THAT PUTS THE EARNINGS YIELD ABOVE THE TEN YEAR BOND YIELD WHICH IS USUALLY A GOOD SIGN OF VALUE SAID THE S. G. WARBURG STRATEGIST HE ADDED THAT QUOTE APART FROM BELGIUM THE BRITISH STOCK MARKET HAS THE HIGHEST DIVIDEND YIELD QUOTE AMONG TWENTY SEVEN WORLD STOCK MARKETS ANALYZED BY HIS FIRM STILL MR. GARTHWAITE SAID I'VE GOT TO BE CAUTIOUS WHEN MARKETS SELL OFF SO QUICKLY ON SOMETHING THAT WAS SO WELLKNOWN ABOUT HE EXPLAINS IT SHOWS THAT EQUITIES ARE INCREASINGLY VULNERABLE LONDON'S FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX DROPPED FIFTY SIX POINT THREE POINTS OR ONE POINT SIX PERCENT TO THREE THOUSAND FOUR HUNDRED NINETEEN POINT ONE THE F. T. THIRTY STOCK INDEX LOST THIRTY FIVE POINT NINE POINTS OR ONE POINT THREE FOUR PERCENT TO TWO THOUSAND SIX HUNDRED THIRTY THREE POINT NINE VOLUME WAS EIGHT HUNDRED NINETY FOUR POINT THREE MILLION SHARES COMPARED WITH SEVEN HUNDRED EIGHTY FIVE POINT ONE MILLION SHARES FRIDAY 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END OHSL FINANCIAL CORPORATION SAID IT PLANS TO BUY BACK ABOUT FIVE PERCENT OF ITS COMMON SHARES OUTSTANDING IN THE OPEN MARKET OVER THE NEXT SIX MONTHS BEGINNING ON OR AFTER WEDNESDAY THE COMPANY SAID IT CURRENTLY HAS ONE MILLION THREE HUNDRED FIFTY SIX THOUSAND SIX HUNDRED COMMON SHARES OUTSTANDING THE THRIFT HOLDING COMPANY SAID THE SHARES WILL BE PURCHASED AT PREVAILING MARKET PRICES FROM TIME TO TIME OHSL SAID THE REPURCHASED SHARES WILL BE HELD AS TREASURY SHARES AND WILL BE AVAILABLE FOR GENERAL CORPORATE PURPOSES AS OF DECEMBER THIRTY FIRST THE COMPANY HAD ASSETS OF ONE HUNDRED SIXTY NINE POINT THREE MILLION DOLLARS JOHN SCULLEY ISN'T ALONE WHEN MR. SCULLEY FORMER CHAIRMAN OF APPLE COMPUTER INCORPORATED JOINED SPECTRUM INFORMATION TECHNOLOGIES INCORPORATED LAST OCTOBER HE WAS OFFERED A MILLION DOLLAR SALARY AND OPTIONS TO BUY EIGHTEEN MILLION SHARES OF ITS STOCK OVER FIVE YEARS FULLY EXERCISED THEY WOULD HAVE GIVEN HIM ROUGHLY TWENTY FIVE PERCENT OF THE BUSINESS BUT WHEN HE ANNOUNCED HIS RESIGNATION YESTERDAY MR. SCULLEY HADN'T EXERCISED ANY OF HIS OPTIONS AND HADN'T EARNED A CENT FROM HIS HUGE STOCK OPTION PACKAGE LIKE MR. SCULLEY CORPORATE EXECUTIVES ARE INCREASINGLY BEING OFFERED STOCK OPTIONS AS A BIG PART OF THEIR COMPENSATION PACKAGES WHEN THEY'RE HIRED TO REVIVE STRUGGLING COMPANIES OF ALL SIZES OPTIONS ARE A GOOD WAY TO DEFLECT INVESTORS' IRE AT SKY HIGH SALARIES THEY PUT CORPORATE LEADERS AND SHAREHOLDERS QUOTE ON THE SAME HUNK OF GROUND QUOTE SAYS JOHN ROBSON FORMER C. E. O. OF G. D. SEARLE AND COMPANY WHO NOW SERVES ON FOUR CORPORATE BOARDS BUT THERE ARE DOZENS OF CASES WHERE PEOPLE CAME IN WITH SIGNIFICANT OPTION PACKAGES AND FOR ONE REASON OR ANOTHER LEFT BEFORE THEY THE PACKAGES RIPENED STOCK OPTIONS CAN ACCOUNT FOR UP TO EIGHTY PERCENT OF A SENIOR EXECUTIVE'S COMPENSATION PACKAGE IN A TURNAROUND OR SIMILARLY RISKY SITUATION SAYS JUDE RICH CHAIRMAN OF COMPENSATION CONSULTANTS SIBSON AND COMPANY IN NEW YORK FIVE OR TEN YEARS AGO HE ADDS IT WOULD HAVE BEEN BETWEEN FORTY PERCENT AND SIXTY PERCENT IT HAS DEFINITELY GONE UP BY CONTRAST CHIEF EXECUTIVE OFFICERS OF FORTUNE ONE HUNDRED COMPANIES DERIVED TWENTY NINE PERCENT OF THEIR TOTAL PAY PACKAGES FROM STOCK OPTIONS LAST YEAR UP FROM SEVENTEEN PERCENT IN NINETEEN EIGHTY SEVEN ACCORDING TO AN ANALYSIS BY PEARL MEYER AND PARTNERS INCORPORATED A COMPENSATION CONSULTING FIRM IN NEW YORK FOR EXECUTIVES THE GROWING RELIANCE ON STOCK OPTIONS MEANS THERE IS NO SOFT LANDING FOR FAILURE SAYS MARK H. EDWARDS MANAGING PRINCIPAL AT IQUANTIC INCORPORATED A SAN FRANCISCO PAY CONSULTING FIRM THAT SPECIALIZES IN HIGH TECHNOLOGY COMPANIES THE SCULLEY CASE IS A GOOD CASE IN POINT HE WALKS AWAY WITH ZERO IN OPTION PROFITS ALONG WITH A DAMAGED REPUTATION QUOTE LEE IACOCCA PIONEERED THE PRACTICE IN NINETEEN SEVENTY EIGHT WHEN HE TOOK THE HELM OF CHRYSLER CORPORATION AND INSISTED ON AN INITIAL SALARY OF ONLY ONE DOLLAR A YEAR HE ALSO RECEIVED OPTIONS TO BUY FOUR HUNDRED THOUSAND SHARES OF CHRYSLER COMMON STOCK AT ABOUT ELEVEN DOLLARS EACH WHEN HE TURNED THE COMPANY AROUND HE EARNED MORE THAN FORTY MILLION DOLLARS IN PROFITS BY EXERCISING HIS OPTIONS ACCORDING TO ONE ESTIMATE A CHRYSLER SPOKESWOMAN DECLINED TO CONFIRM THAT FIGURE MR. IACOCCA RETIRED AS CHRYSLER'S CHIEF EXECUTIVE IN DECEMBER NINETEEN NINETY TWO OTHER EXECUTIVES ALSO HAVE PROFITED FROM EXERCISING OPTIONS WHEN THEIR CORPORATE REVIVAL EFFORTS BOOSTED A COMPANY'S STOCK PRICE WHEN LAWRENCE BOSSIDY BECAME CHAIRMAN AND CHIEF EXECUTIVE OF ALLIEDSIGNAL INCORPORATED IN THE SUMMER OF NINETEEN NINETY ONE HE WAS GIVEN OPTIONS TO BUY TWO HUNDRED FIFTY THOUSAND SHARES ALONG WITH HIS ONE MILLION DOLLARS STARTING SALARY MR. BOSSIDY WIDELY CREDITED WITH ALLIEDSIGNAL'S RECENT TURNAROUND EARNED SIX HUNDRED SIXTY FOUR THOUSAND SEVENTY FIVE DOLLARS FROM EXERCISING OPTIONS ON TWENTY FIVE THOUSAND SHARES DURING NINETEEN NINETY TWO THE MORRIS TOWNSHIP N. J. BASED CONGLOMERATE SAYS BUT SOMETIMES THERE IS NO PAYOFF FROM BIG STOCK OPTION PACKAGES AT AILING COMPANIES RICHARD W. MILLER WAS HIRED TO REVIVE THE COMPUTER MAKER WANG LABORATORIES INCORPORATED BUT ENDED UP OVERSEEING ITS BANKRUPTCY LAW PROCEEDINGS HE RESIGNED IN THE WINTER OF NINETEEN NINETY THREE AFTER THREE YEARS AS WANG'S CHAIRMAN AND CHIEF EXECUTIVE WITHOUT EVER EXERCISING A SINGLE ONE OF THE TWO MILLION OPTIONS HE GOT WITH THE JOB THE LOWELL MASSACHUSETTS COMPANY EMERGED FROM BANKRUPTCY PROTECTION LAST FALL SIMILARLY JAMES WAVLE RECEIVED OPTIONS TO BUY FIVE HUNDRED TEN THOUSAND SHARES DURING THE FIVE YEARS THAT HE RAN CENTOCOR INCORPORATED A MALVERN PENNSYLVANIA BIOTECHNOLOGY CONCERN THE FORMER WARNER LAMBERT COMPANY SENIOR EXECUTIVE RECRUITED IN NINETEEN EIGHTY SEVEN TRIED TO TRANSFORM THE SLOW GROWING COMPANY INTO A MAJOR PHARMACEUTICAL MAKER BUT THE TRANSFORMATION DIDN'T WORK AND MR. WAVLE RESIGNED IN APRIL NINETEEN NINETY TWO WITHOUT EXERCISING A SINGLE OPTION MANY OTHER EXECUTIVES ARE STILL SITTING ON THEIR OPTIONS COUNTING ON THEIR COMPANIES' TURNAROUNDS LOUIS V. GERSTNER JUNIOR HIRED LAST SPRING TO RUN INTERNATIONAL BUSINESS MACHINES CORPORATION RECEIVED OPTIONS FOR FIVE HUNDRED THOUSAND SHARES IN HIS COMPENSATION PACKAGE EASTMAN KODAK COMPANY OFFERED GEORGE FISHER ITS NEW CHAIRMAN AND CHIEF EXECUTIVE OPTIONS TO BUY SEVEN HUNDRED FIFTY THOUSAND SHARES LAST DECEMBER COMPENSATION CONSULTANTS VALUED MR. FISHER'S OPTION PACKAGE AT ABOUT THIRTEEN MILLION DOLLARS TO SEVENTEEN MILLION DOLLARS THE SPECTRUM SITUATION IS UNLIKELY TO DIMINISH AILING COMPANIES' AFFINITY FOR EXECUTIVE STOCK OPTIONS I AM SURE SCULLEY WILL WALK AROUND THE BLOCK AND COME UP WITH SOMETHING VERY SWEET IN THE FUTURE SAYS JUDITH FISCHER PUBLISHER OF THE NEWSLETTER EXECUTIVE COMPENSATION REPORTS AND HIS NEXT DEAL WILL LIKELY INVOLVE PLENTY OF STOCK OPTIONS SHE ADDS UDAYAN GUPTA CONTRIBUTED TO THIS ARTICLE BASIC RESEARCH YIELDS AN UNEXPECTED PAYOFF A TEST TO DETECT QUOTE FAUX GRAS QUOTE THE FAMOUS FRENCH DELICACY FOIE GRAS MUST BY LAW CONSIST ONLY OF LIVERS FROM FATTENED GEESE BUT SOME LESS THAN SCRUPULOUS PRODUCERS ARE ILLEGALLY SPIKING THEIR FOIE GRAS WITH CHICKEN OR TURKEY LIVERS TO CUT COSTS OR THEY ADD CHICKEN EGG WHITES TO IMPROVE THE TEXTURE TO CATCH THE FAUX GRAS CROOKS IMMUNOLOGIST ALAIN PARAF OF INRA THE BIG FRENCH RESEARCH AGENCY RECENTLY APPROACHED U. S. IMMUNOLOGIST SANDRA SMITH GILL OF THE FEDERAL NATIONAL CANCER INSTITUTE IN BETHESDA MARYLAND WITH A NOVEL IDEA DOCTOR SMITH GILL WHO DOES BASIC RESEARCH ON HOW THE IMMUNE SYSTEM RECOGNIZES PROTEINS IS AN EXPERT ON A WELL STUDIED PROTEIN CALLED LYSOZYME FOUND IN BIRDS THE FRENCH SCIENTIST NOTED THAT GOOSE LYSOZYME IS SLIGHTLY DIFFERENT FROM CHICKEN TURKEY OR DUCK LYSOZYMES HE WONDERED IF THE DIFFERENCE WAS GREAT ENOUGH TO BE DETECTED BY MONOCLONAL ANTIBODIES LAB MADE VERSIONS OF THE ANTIBODIES THAT THE IMMUNE SYSTEM OF MAMMALS HURLS AGAINST INVASIONS OF VIRUSES AND OTHER FOREIGN PROTEINS I REALLY DIDN'T THINK IT WOULD WORK SAYS DOCTOR SMITH GILL BUT INTRIGUED SHE BEGAN A COLLABORATION WITH DOCTOR PARAF AND HIS GRADUATE STUDENT FABIENNE HEMMEN THEY NOW REPORT PRELIMINARY SUCCESS MONOCLONAL ANTIBODIES DESIGNED TO RECOGNIZE CHICKEN LYSOZYME DID DETECT CHICKEN AND TURKEY LIVER MIXED IN FOIE GRAS THEY REPORTED IN THE DECEMBER ISSUE OF THE JOURNAL OF FOOD SCIENCE THE RESEARCHERS ARE NOW SCREENING MORE MONOCLONAL ANTIBODIES TO MAKE THE TEST MORE SENSITIVE DOCTOR SMITH GILL SAYS THE TEST ULTIMATELY COULD BE AS SIMPLE TO USE AS THE ANTIBODY BASED HOME PREGNANCY TESTS NOW IN USE WOMEN WHO WERE STUDENT ACTIVISTS BACK IN THE NINETEEN SIXTIES SEEM TO BE DOING BETTER IN THEIR FORTIES THAN THE MEN WHO PROTESTED BESIDE THEM BACK IN NINETEEN FIFTY ONE PSYCHOLOGISTS IN BOSTON INTERVIEWED THREE HUNDRED SEVENTY NINE MOTHERS OF KINDERGARTEN CHILDREN ON THEIR PARENTING PRACTICES AND THE CHILDREN'S BEHAVIOR OTHER RESEARCHERS TRACKED DOWN MANY OF THE CHILDREN IN NINETEEN SEVENTY SEVEN WHEN THEY WERE THIRTY ONE AND AGAIN IN NINETEEN EIGHTY SEVEN WHEN THEY WERE FORTY ONE TO SEE HOW THEY WERE FARING THE DATA STORED AT RADCLIFFE COLLEGE'S HENRY A. MURRY RESEARCH CENTER HAVE NOW BEEN ANALYZED BY TWO PSYCHOLOGISTS TO SEE WHAT DIFFERENCES THERE WERE BETWEEN THE CHILDREN WHO BECAME STUDENT ACTIVISTS IN THE NINETEEN SIXTIES AND THOSE WHO DIDN'T AT AGE THIRTY ONE THE FEMALE ACTIVISTS WERE LESS INVOLVED IN FAMILY LIFE AND HAD BETTER JOBS THAN THEIR NONACTIVIST FEMALE PEERS OF EQUIVALENT EDUCATION AT FORTY ONE THEY SHOWED LESS STRAIN QUOTE REPORTED CAROL E. FRANZ FORMERLY OF THE MURRY CENTER AND NOW AT WILLIAMS COLLEGE AND DAVID C. MCCLELLAND OF BOSTON UNIVERSITY IN THE JANUARY JOURNAL OF PERSONALITY AND SOCIAL PSYCHOLOGY BUT THE MALE ACTIVISTS DID LESS WELL THAN THE NONACTIVIST MEN IN GAINING HIGH STATUS WELL PAYING JOBS THE MEN ALSO HAD A LOWER SENSE OF PSYCHOLOGICAL WELL BEING AND FELT A GREATER SENSE OF STRAIN AT AGE FORTY ONE THAN THEIR NONACTIVIST PEERS THE WOMEN'S BETTER ADJUSTMENT IN MIDLIFE MIGHT REFLECT THE OUTCOME OF THEIR STUDENT ACTIVISM THE RESEARCHERS SPECULATED THE WOMEN WERE PROTESTING FOR FREEDOM AND RIGHTS FOR EVERYONE TO DEVELOP THEIR FULLEST POTENTIAL GOALS THAT WERE PARTIALLY FULFILLED IN THE FEMINIST MOVEMENT BUT THE MEN IN THEIR DRAFT RESISTANCE REBELLED AGAINST THE TRADITIONAL MALE ROLE OF BEING A SOLDIER AND PROVIDER A REBELLION THAT FAILED TO PRODUCE ANY ORGANIZED SOCIAL MOVEMENT THE IMPACT OF THE CONSERVATIVE REAGAN YEARS ON THESE LIBERAL MINDED MEN MAY HAVE BEEN PARTICULARLY NEGATIVE THE RESEARCHERS SUGGESTED RESEARCH INTO BOTHERSOME NOISE IN MAGNETIC RECORDINGS LEADS TO A NEW WAY TO FOIL CREDIT CARD COUNTERFEITERS ELECTRICAL ENGINEERS RONALD S. INDECK AND MARCEL W. MULLER AT WASHINGTON UNIVERSITY IN SAINT LOUIS HAVE BEEN ANALYZING THE NATURE OF MEANINGLESS UNWANTED SIGNALS FROM MAGNETIC RECORDINGS THEY DISCOVERED THAT THERE IS A PATTERN TO THE NOISE THAT IS UNIQUE TO EACH RECORDING AND EVEN TO EACH SPOT ON A RECORDING THE UNWANTED SIGNAL HIDDEN SAY ON A VIDEOTAPE IS NOT ONLY DIFFERENT FROM THAT ON ANY OTHER VIDEOTAPE BUT THE NOISE ON THE FIRST INCH IS DIFFERENT FROM THAT ON EVERY OTHER INCH OF THE SAME TAPE MOREOVER SAYS DOCTOR INDECK THIS QUOTE MAGNETIC FINGERPRINT QUOTE IS A PERMANENT FEATURE OF EACH RECORDING AND IT CAN'T BE COPIED OR DUPLICATED THIS IS BECAUSE THE MICROSCOPIC MAGNETIC PARTICLES THAT PRODUCE THE SIGNAL ARE SCATTERED RANDOMLY ON EACH TAPE DISK OR CARD A CREDIT CARD FORGER WOULD HAVE TO TAKE A PAIR OF MICROSCOPIC TWEEZERS AND SPEND THOUSANDS OF YEARS TRYING TO POSITION MILLIONS OF MAGNETIC PARTICLES IN A PATTERN THAT WOULD DUPLICATE THE FINGERPRINT ON THE MAGNETIC STRIPE OF A CREDIT CARD DOCTOR INDECK EXPLAINS THE RESEARCHERS ARE NOW DEVELOPING A PROGRAM FOR THE CHIP IN STORE AND RESTAURANT CREDIT CARD READERS THAT CAN RECOGNIZE EACH CARD'S UNIQUE MAGNETIC FINGERPRINT DOCTOR INDECK SAYS FAILURE OF THE FINGERPRINT TO CORRELATE WITH THE CARD'S NUMBER WOULD REVEAL COUNTERFEITS MAGNETIC FINGERPRINTING ALSO MIGHT BE USED TO DETECT TAMPERING WITH TAPE RECORDINGS OR TO SPOT PIRATED MUSIC TAPES IN GEORGIA A CHEROKEE BURIAL GROUND WAS LEFT UNDISTURBED BY A NEW POWER LINE WHEN THE LINE WAS THREADED THROUGH A SIXTEEN INCH DIAMETER TUNNEL BORED UNDER THE SITE BY A NEW DRILLING SYSTEM DEVELOPED BY THE ELECTRIC POWER RESEARCH INSTITUTE PENN STATE IN URGING FARMERS TO RAISE OSTRICH LIKE EMUS SAYS THE GIANT BIRDS' BEEF LIKE RED MEAT IS LOW IN FAT CALORIES AND CHOLESTEROL EARNING IT AN ENDORSEMENT FROM THE AMERICAN HEART ASSOCIATION UNDER THE GLASS DOME OF THIS CITY'S BOLSA AND IN OTHER EMERGING MARKETS AROUND THE WORLD INVESTORS ARE SHIFTING THEIR FOCUS FROM LARGE ENTERPRISES TOWARD LITTLE COMPANIES WITH BIG STORIES FOR THE PAST THREE YEARS EMERGING MARKET INVESTORS PLAYED IT SAFE STICKING WITH THE LARGEST STOCKS AND WHY NOT THE GIANTS DID SPECTACULARLY WELL TELEFONOS DE MEXICO FOR INSTANCE CLIMBED TWENTY TWO PERCENT IN LOCAL CURRENCY TERMS AND CEMENTOS MEXICANOS SOARED NINETY ONE PERCENT THEIR STOCKS TRADED SMOOTHLY ANALYST COVERAGE WAS EXTENSIVE AND IT WAS EASY TO UNDERSTAND HOW MEXICO'S TELEPHONE AND CEMENT GIANTS WOULD BENEFIT AS THE COUNTRY MODERNIZED BUT THIS TYPE OF BIG PICTURE MACROECONOMIC STOCK PICKING IS GIVING WAY TO THE QUOTE MICRO BET QUOTE WHEN EMERGING ECONOMIES BEGIN TO STABILIZE IT IS VERY IMPORTANT TO LOOK AT WHAT SMALL COMPANIES ARE DOING BECAUSE THEY CAN GROW EARNINGS FASTER THAN LARGER COMPANIES SAYS SORAYA BETTERTON MANAGER OF THE G. T. LATIN AMERICA GROWTH FUND JUST LAST WEEK TELEFONOS DE MEXICO OR TELMEX POSTED A MEAGER FOUR POINT FIVE PERCENT GAIN IN PER SHARE EARNINGS FOR NINETEEN NINETY THREE ADJUSTED FOR INFLATION TELMEX CAN'T GROW AT TWENTY PERCENT PER ANNUM ANY MORE MS. BETTERTON SAYS BUT MAYBE SMALLER MEXICAN COMPANIES CAN BOTTLERS ENGINEERING AND CONSTRUCTION COMPANIES BANKS AND RETAILERS SO INVESTORS ARE NOW LOOKING AT SMALL COMPANIES IN BRAZIL CHILE ARGENTINA MEXICO TURKEY AND IN MANY OTHER EMERGING MARKETS AROUND THE WORLD OUR CLIENTS WANT TO MOVE DOWN IN CAPITALIZATION SAYS RICHARD WATKINS CHIEF EXECUTIVE OFFICER OF LATIN INVEST SECURITIES LIMITED IN LONDON THEY REALIZE THE BIG STOCKS ARE NOT THE WAY TO MAKE MONEY IN NINETEEN NINETY FOUR IN SMALL OR VOLATILE MARKETS SUCH AS THOSE IN PERU AND VENEZUELA INVESTORS ARE STILL STICKING WITH THE LARGEST STOCKS HE SAYS THERE HAS ALWAYS BEEN A CADRE OF SMALL FOREIGN STOCK SPECIALISTS AROUND BUT NOW MANY TRADITIONAL INTERNATIONAL STOCK PLAYERS ARE LOOKING AT SMALLER ISSUES AND NEW FOREIGN STOCK FUNDS ARE BEING LAUNCHED DEDICATED TO SMALL STOCKS MONTGOMERY ASSET MANAGEMENT LAUNCHED ITS INTERNATIONAL SMALL CAP FUND IN OCTOBER IN DECEMBER G. T. CAPITAL MANAGEMENT OPENED ITS EMERGING MARKETS SMALL COMPANIES FUND AN OFFSHORE FUND FOR LARGE EUROPEAN INVESTORS THAT INVESTS IN COMPANIES WITH A CAPITALIZATION NO LARGER THAN TWO HUNDRED FIFTY MILLION DOLLARS THERE ARE TWO DIFFICULTIES WITH THIS INVESTMENT STYLE FIRST MANY SMALL COMPANIES IN EMERGING MARKETS ARE CLOSELY HELD BY FAMILIES LEAVING LITTLE STOCK AVAILABLE IN THE PUBLIC MARKET CASA AUTREY A MEXICAN PHARMACEUTICALS DISTRIBUTOR FOR EXAMPLE HAS ONE HUNDRED SIX MILLION SHARES BUT ONLY TWENTY SEVEN POINT FIVE MILLION SHARES TRADE IN THE PUBLIC MARKET THE OTHER SEVENTY EIGHT POINT FIVE MILLION SHARES ARE OWNED BY THE AUTREY FAMILY THE SMALL NUMBER OF SHARES AVAILABLE NOT ONLY MAKES AUTREY AND OTHER SMALL STOCKS DIFFICULT TO BUY BUT IT ALSO MAKES THEM EVEN HARDER TO SELL IF THE MARKET TAKES A DIVE ALSO BECAUSE IT IS DIFFICULT FOR MANY INSTITUTIONS TO BUILD BIG POSITIONS IN SMALL STOCKS ANALYST COVERAGE IS LIKELY TO BE THIN JOHN BOICH MANAGER OF THE NEW MONTGOMERY FUND SAYS DATA BASES SUCH AS I SLASH B. SLASH E. SLASH S. AND WORLDSCOPE ARE DIMINISHING THE PROBLEM BY CONTRIBUTING TO QUOTE THE DECLINE OF THE INFORMATION BARRIER QUOTE AS HE CALLS IT STILL INTENSIVE LEGWORK IS REQUIRED TO KEEP CONTACT WITH SMALL COMPANIES NEW TERRITORIES MR. BOICH ONCE TRAVELED TWO HOURS TO A SMALL TOWN OUTSIDE SANTIAGO CHILE TO VISIT SANTA ISABEL A GROCERY STORE CHAIN STANDING IN LINE WITH FOOD VENDORS AND EMPLOYEES TO SEE MANAGEMENT YOU CAN'T APPROACH THESE NON U. S. COMPANIES WITH THE SAME ATTITUDE AS YOU DO IN AMERICA SAYING I'M AN ANALYST GIVE ME THE NUMBERS' MR. BOICH SAYS IF YOU APPROACH THEM LIKE THAT YOU GET NOTHING MONTGOMERY'S FUND MANAGERS WHO SPEAK A TOTAL OF SOME SEVEN LANGUAGES WILL VISIT FOUR HUNDRED FIFTY COMPANIES THIS YEAR HE PREDICTS MR. BOICH PLANS ON BEING IN AIRPLANES OR HOTEL ROOMS ABOUT THREE MONTHS OUT OF THE YEAR THERE ISN'T MUCH RESEARCH ON THESE COMPANIES AND THAT'S THE EXCITING PART OF IT SAYS ANDREW BOCZEK CO MANAGER OF THE NEW G. T. CAPITAL FUND IN SEVERAL CASES WE WERE THE FIRST INSTITUTIONAL INVESTORS MANAGEMENTS HAD EVER SEEN MR. BOCZEK RECALLS DRIVING AROUND MEXICO CITY FOR HOURS LOOKING FOR THE HEADQUARTERS OF GRUPO MARTI A SPORTING GOODS DISTRIBUTOR BUT THE SEARCH PAID OFF SHARES OF MARTI ARE UP ABOUT TEN PERCENT THIS YEAR OTHER INQUIRIES ARE LESS FRUITFUL MANAGEMENT AT GRUPO HERDEZ A MEXICAN FOOD COMPANY HAS TURNED DOWN REQUESTS FOR A MEETING FROM MUTUAL FUND MANAGERS IN MEXICO ASIDE FROM GRUPO MARTI MR. BOCZEK ALSO LIKES TABLEX S. A. A PASTA AND COOKIE COMPANY SERVICIOS FINANCIEROS QUADRUM A LEASING AND FACTORING COMPANY THAT RECENTLY RECEIVED A BANKING LICENSE AND RADIO CENTRO A BROADCAST COMPANY QUADRUM AND RADIO CENTRO TRADE ON THE NEW YORK STOCK EXCHANGE IN BRAZIL THE G. T. FUND PURCHASED STOCK IN RETAILING CHAINS MESBLA S. A. AND CASA ANGLO S. A. AND IN IOCHPE MAXION S. A. A DISTRIBUTOR OF FARM EQUIPMENT AND A MAKER OF BUS AND TRUCK CHASSIS IN ARGENTINA MR. BOICH OF MONTGOMERY SUGGESTS INVESTORS LOOK AT BANCO DEL SUD A REGIONAL BANK THE STOCK HAS A CAPITALIZATION OF ABOUT FIVE HUNDRED FIFTY MILLION DOLLARS ASSET GROWTH WILL BE ABOUT TWENTY FIVE PERCENT THIS YEAR HE SAYS AND FEE INCOME IS GROWING LIKE CRAZY MR. BOCZEK OF G. T. CAPITAL CALLS INVESTING IN SMALL STOCKS IN EMERGING MARKETS QUOTE THE NEXT FRONTIER EVENTUALLY WE ARE GOING TO INVEST IN THE MIDDLE EAST AND AFRICA THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CINCINNATI GAS AND ELECTRIC COMPANY TWO HUNDRED TWENTY MILLION DOLLARS OF FIRST MORTGAGE BONDS BONDS PRICED BY UNDERWRITERS LED BY MORGAN STANLEY AND COMPANY ACCORDING TO M. C. M. CORPORATEWATCH THE FIRST TRANCHE ONE HUNDRED TEN MILLION DOLLARS OF FIRST MORTGAGE BONDS DUE FEBRUARY FIFTEENTH NINETEEN NINETY NINE WAS PRICED AS FIVE POINT EIGHTS AT NINETY NINE POINT SEVEN NINE TO YIELD FIVE POINT EIGHT FOUR NINE PERCENT THE BONDS WERE PRICED AT A SPREAD OF FIFTY BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE ONE HUNDRED TEN MILLION DOLLARS OF FIRST MORTGAGE BONDS DUE FEBRUARY FIFTEENTH TWO THOUSAND FOUR WAS PRICED AS SIX POINT FOUR FIVES AT NINETY NINE POINT EIGHT ONE EIGHT TO YIELD SIX POINT FOUR SEVEN FIVE PERCENT THE BONDS WERE PRICED AT A SPREAD OF FIFTY NINE BASIS POINTS ABOVE THE WHEN ISSUED TREASURY BOTH PARTS ARE NONCALLABLE AND RATED B. A. A. ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND TRIPLE B. PLUS BY STANDARD AND POOR'S CORPORATION FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED MILLION DOLLARS OF FLOATING RATE NOTES DUE FEBRUARY FOURTEENTH NINETEEN NINETY SEVEN PRICED AT PAR ACCORDING TO M. C. M. CORPORATEWATCH THE COUPON ON THE NONCALLABLE ISSUE WILL FLOAT AND PAY QUARTERLY AT FIFTEEN BASIS POINTS ABOVE THREE MONTH TREASURY BILLS THE FIRST COUPON WILL BE SET MAY FOURTEENTH THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY INTERCEL INCORPORATED INITIAL OFFERING OF ONE POINT SIX MILLION COMMON SHARES PRICED AT EIGHT DOLLARS AND TWENTY FIVE CENTS EACH THROUGH UNDERWRITERS LED BY ROBINSON HUMPHREY COMPANY AND EQUITABLE SECURITIES CORPORATION TRISM INCORPORATED INITIAL OFFERING OF TWO POINT TWO MILLION COMMON SHARES PRICED AT FOURTEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY ALEXANDER BROWN AND SONS INCORPORATED AND SMITH BARNEY SHEARSON INCORPORATED WEBCO INDUSTRIES INCORPORATED INITIAL OFFERING OF TWO POINT FIVE MILLION COMMON SHARES PRICED AT FOURTEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY AND COMPANY AND DEAN WITTER REYNOLDS FEDERAL HOME LOAN MORTGAGE CORPORATION THREE HUNDRED SIXTY MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY BEAR STEARNS AND COMPANY THE OFFERING SERIES ONE THOUSAND SIX HUNDRED SEVENTY FOUR IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT SIX FIVE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY SIX MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION NINE HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY BEAR STEARNS AND COMPANY THE OFFERING SERIES NINETEEN NINETY FOUR TO FORTY IS BACKED BY FANNIE MAE THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT SIX TWO FIVE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY SIX MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION TWO HUNDRED FIFTY MILLION DOLLARS OF REMIC SECURITIES OFFERED BY UTENDAHL CAPITAL PARTNERS THE OFFERING SERIES NINETEEN NINETY FOUR TO THIRTY EIGHT IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT SIX FIVE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY SIX MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION ONE HUNDRED SIXTY TWO POINT FIVE MILLION DOLLARS OF REMIC SECURITIES OFFERED BY PRUDENTIAL SECURITIES INCORPORATED THE OFFERING SERIES NINETEEN NINETY FOUR TO THIRTY FIVE IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT SIX FIVE PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS BANGKOK BANK LIMITED THAILAND FOUR HUNDRED MILLION DOLLARS OF TEN YEAR SUBORDINATED CONVERTIBLE EUROBONDS AT ISSUE PRICE PAR VIA MORGAN STANLEY AND COMPANY INDICATED COUPON THREE PERCENT TO THREE POINT TWO FIVE PERCENT CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM TWENTY THREE PERCENT TO TWENTY SIX PERCENT MANDATORILY CONVERTIBLE AFTER THREE YEARS IF SHARE PRICE EXCEEDS ONE HUNDRED FORTY PERCENT OF CONVERSION PRICE FEES TWO POINT FIVE LESS ZERO POINT THREE THREE FOR LEAD MANAGER CESAR CORPORATION JAPAN ONE HUNDRED MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE ZERO POINT SEVEN FIVE PERCENT NOTES DUE MARCH THIRTY FIRST NINETEEN NINETY EIGHT AT PAR VIA NOMURA BANK SWITZERLAND NOTES CONVERTIBLE FROM MARCH SEVENTH TO MARCH SEVENTEENTH NINETEEN NINETY EIGHT AT EXPECTED TWO POINT FIVE PERCENT PREMIUM TERMS FIXED FEBRUARY FOURTEENTH FEES ONE POINT SIX TWO FIVE CREDIT FONCIER DE FRANCE FRENCH AGENCY SEVEN HUNDRED THIRTY MILLION FRENCH FRANCS OF SEVEN POINT SIX PERCENT EUROBONDS DUE MARCH SEVENTH NINETEEN NINETY SEVEN AT ISSUE PRICE PAR VIA BANKERS TRUST FRANCE S. A. REDEMPTION AT SEVENTY FIVE MULTIPLIED BY SUM OF ONE PLUS FOLLOWING CACF MINUS C. A. C. I. ALL DIVIDED BY C. A. C. I. TO MAXIMUM ZERO CACF IS VALUE OF C. A. C. FORTY INDEX FOUR WEEKS BEFORE MATURITY C. A. C. I. IS AVERAGE OF C. A. C. FORTY INDEX FROM THREE READINGS FEBRUARY EIGHTH FEES UNDISCLOSED HALIFAX BUILDING SOCIETY U. K. FIVE HUNDRED MILLION POUNDS OF FLOATING RATE EURONOTES DUE MARCH NINETEEN NINETY NINE AT ISSUE PRICE PAR VIA SAMUEL MONTAGU AND COMPANY AND S. G. WARBURG SECURITIES LIMITED REOFFERED AT NINETY NINE POINT SEVEN TWO INTEREST PAYABLE QUARTERLY FLAT AT THREE MONTH LONDON INTERBANK OFFERED RATE CALLABLE QUARTERLY AT PAR FROM MARCH NINETEEN NINETY SEVEN FEES ZERO POINT FOUR THREE MAEDA CORPORATION JAPAN TWO HUNDRED MILLION DOLLARS OF ONE POINT TWO FIVE PERCENT EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH THIRD NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA DAIWA EUROPE LIMITED WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM MARCH SEVENTEENTH TO FEBRUARY SEVENTEENTH NINETEEN NINETY EIGHT TERMS FIXED FEBRUARY FOURTEENTH INDICATED PREMIUM TWO POINT FIVE PERCENT MONDAY'S CLOSING SHARE PRICE ONE THOUSAND TWO HUNDRED SEVENTY YEN FEES TWO POINT TWO FIVE LESS ZERO POINT ONE FIVE FOR LEAD MANAGER TAKE THE GLITZ AND DECORUM AWAY FROM BOXING AND WRESTLING AND YOU HAVE THE HOTTEST NEW SPORT TO ARRIVE ON CABLE AND PAY PER VIEW TELEVISION FIGHTS BETWEEN ORDINARY GUYS BILLED AS QUOTE THE ULTIMATE BARROOM BRAWL QUOTE A SERIES OF REGIONAL MATCHES KNOWN AS TOUGHMAN CONTESTS WILL AIR THURSDAY ON CABLE'S PRIME NETWORK TO ABOUT FORTY MILLION PEOPLE NATIONWIDE THE BOUTS PIT MEN WITH NO PROFESSIONAL BOXING EXPERIENCE AND LITTLE SKILL AGAINST ONE ANOTHER IN THE RING SIXTEEN REGIONAL WINNERS WILL DUKE IT OUT AT THE TOUGHMAN WORLD CHAMPIONSHIP AT LAS VEGAS'S M. G. M. GRAND HOTEL IN MAY AND THE PAY PER VIEW TELECAST IS EXPECTED TO DRAW THE EVENT'S BIGGEST AUDIENCE YET FOR SHOWTIME EVENT TELEVISION PAY PER VIEW A UNIT OF VIACOM INCORPORATED THE LAST THING I'M GOING TO TELL ANYONE IS THAT THIS IS GOOD BOXING SAYS ART DORE A FORMER BOXING PROMOTER WHO STARTED THE FIGHTS IN BAY CITY MICHIGAN IN NINETEEN SEVENTY NINE BUT IT'S REAL THIS IS WHAT PEOPLE WANT TO SEE THE TOUGHMAN CONTEST ATTRACTS ALL SORTS OF CONTENDERS FROM DOCTORS TO BARROOM BULLIES LEO THE LION RICHARDSON A SYRACUSE BARTENDER LISTS LIFTING WEIGHTS AND RIDING HARLEY DAVIDSONS AS HIS HOBBIES KEVIN COUNTRY BOY HELDENBRANDT A MISSOURI DEPARTMENT OF CORRECTIONS ENGINEER WHO IS DEAF IS ABLE TO FIGHT BUT CAN'T HEAR THE BELL SO THE REFEREE THROWS A TOWEL IN HIS FACE AT THE END OF EACH ROUND LAST YEAR AN EX CON FROM MONROE LOUISIANA RANDY QUOTE PENITENTIARY QUOTE BROOKS FOUGHT TONY QUOTE SUPER TROOPER QUOTE WALL A CALIFORNIA STATE TROOPER THE EX CON WHO HAD SERVED TIME FOR MANSLAUGHTER WON AFTER THE AMATEUR SLUGFEST IN LAS VEGAS BECAME A SURPRISE HIT ON PAY PER VIEW LAST YEAR AT TWELVE DOLLARS AND NINETY FIVE CENTS A POP SET PAY PER VIEW DECIDED TO AIR THIS YEAR'S REGIONAL FIGHTS IN PART TO CREATE DEMAND FOR THE PAY PER VIEW EVENT IN MAY FOR A FRACTION OF THE COST OF BIG NAME PRIZE FIGHTS SET PAY PER VIEW HOPES TO REAP BIG PROFITS FROM TOUGHMAN THE PAY PER VIEW INDUSTRY BADLY NEEDS PROGRAMMING TO BOOST REVENUE IN THE EVENTS CATEGORY WHICH FOR NINETEEN NINETY THREE IS ESTIMATED TO BE TWENTY FIVE MILLION DOLLARS BELOW ITS NINETEEN NINETY ONE HIGH OF TWO HUNDRED FORTY MILLION DOLLARS ACCORDING TO PAUL KAGAN ASSOCIATES INCORPORATED BECAUSE BOXING REVENUE DRIVES THE EVENTS CATEGORY GROWTH ENDED AFTER MIKE TYSON WAS CONVICTED OF RAPE AND SENTENCED TO PRISON IN NINETEEN NINETY TWO SO WITH THE PROMISE OF NEAR LIMITLESS CHANNEL CAPACITY LOOMING PAY PER VIEW EVENT DISTRIBUTORS ARE TESTING ALMOST EVERYTHING WRESTLING ROCK CONCERTS OPERA COLLEGE S. A. T. STUDY COURSES EVEN AMATEUR FISTICUFFS DURING THE REGIONAL MATCHES ON CABLE SET PAY PER VIEW HOPES TO BUILD APPEAL BY PROMOTING LOCAL HEROES SUCH AS ERIC BUTTERBEAN ESCH TWENTY SIX WHO EMERGED AS A CROWD PLEASER IN LAS VEGAS LAST YEAR MR. ESCH A BALD THREE HUNDRED POUND ALABAMA CONSTRUCTION WORKER WHO IS PARTIAL TO DENIM TRUNKS ENTERED HIS FIRST TOUGHMAN CONTEST ON A FRIEND'S DARE I LIKE TO FIGHT MR. ESCH SAYS I DON'T DO DRUGS BUT THIS IS MY KIND OF HIGH I GET EXCITED THE CROWD IS SCREAMING AND LAST YEAR THERE WERE BUTTERBEAN SIGNS EVERYWHERE HE VOWS TO GO FOR KNOCKOUTS THIS YEAR THE CONTESTS HAVE BEEN SELLING OUT LOCAL ARENAS IN PLACES RANGING FROM DAYTON OHIO AND ASHEVILLE N. C. TO DETROIT CONTESTANTS AFTER MEETING MINIMUM AGE AND WEIGHT STANDARDS EIGHTEEN YEARS AND ONE HUNDRED SEVENTY FIVE POUNDS AND PASSING A PHYSICAL NEED ONLY SHOW UP TO COMPETE FANS RELISH THE NONONSENSE TAKE ALL COMERS FORMAT THE LOSER LEAVES THE RING WHILE THE WINNER FIGHTS AS MANY AS FOUR CHALLENGERS IN A SINGLE NIGHT RULES ARE FEW SLUGGING IS THE FAVORED TECHNIQUE BECAUSE THERE ARE ONLY THREE ROUNDS OF SIXTY SECONDS EACH COMPARED WITH PRO BOXING'S TEN THREE MINUTE ROUNDS HOLDING TRIPPING AND OTHER DIRTY TRICKS ARE FROWNED UPON BUT SOMETIMES OVERLOOKED BY THE JUDGES WHO SCORE THE BOUTS STILL THE MATCHES AREN'T AS BRUTAL AS MIGHT BE EXPECTED TOUGHMAN CONTESTANTS WEAR GROIN PROTECTORS HEAD GEAR AND BULKY SIXTEEN OUNCE GLOVES HEAVYWEIGHT BOXERS USE TEN OUNCE GLOVES NO ONE HAS BEEN SERIOUSLY INJURED IN A TOUGHMAN BOUT THOUGH THE CONTEST'S NUMEROUS IMITATORS MAY NOT BE ABLE TO MAKE THAT CLAIM LAST YEAR THE REFEREE WAS FORCED TO STOP A FIGHT DURING THE CHAMPIONSHIP IN LAS VEGAS MANUEL QUOTE GRANDADDY QUOTE RODRIGUEZ A FORTY TWO YEAR OLD MICHIGAN AUTO WORKER WASN'T HURT BUT THE REFEREE HALTED ACTION LONG ENOUGH TO PULL UP THE FIGHTER'S DROOPING TRUNKS MR. DORE SERVES AS MASTER OF CEREMONIES RING ANNOUNCER AND COLOR COMMENTATOR DURING THE MATCHES ESCHEWING THE PASSIVE ROLE OF PRO BOXING ANNOUNCERS MR. DORE REGULARLY SCREAMS AT THE FIGHTERS A RECENT TIRADE NEVER TAKE A STEP BACK TOUGHMEN GO STRAIGHT FORWARD ONLY TEN SECONDS LEFT GET HIM GET HIM GET HIM GET HIM FIGHT ON THE TALENT IS CHEAP TOO INSTEAD OF THE TWENTY MILLION DOLLAR PURSE THAT MIGHT BE RESERVED FOR A PROFESSIONAL FIGHTER ON PAY PER VIEW THE TOUGHMAN CHAMP RECEIVES FIFTY THOUSAND DOLLARS AND LOSERS GO HOME EMPTY HANDED FURTHER SET PAY PER VIEW WILL PAY A RELATIVE PITTANCE TO MARKET TOUGHMAN SIX HUNDRED THOUSAND DOLLARS COMPARED WITH THE THREE MILLION DOLLARS TYPICALLY SPENT ON HEAVYWEIGHT CHAMPIONSHIPS PRIME A CHAIN OF REGIONAL SPORTS NETWORKS WILL AIR THIRTY SECOND SET SPOTS DURING REGIONAL CONTESTS FOR MAY'S PAY PER VIEW EVENT SET HAS SIGNED VETERAN MADISON SQUARE GARDEN BOXING ANNOUNCER BRUCE BECK TO CALL THE CHAMPIONSHIP FIGHT T. V. PERSONALITY AND NINETEEN EIGHTY ONE TO EIGHTY TWO TOUGHMAN CHAMP MR. T. WILL BE A CELEBRITY ANNOUNCER AND CORNER MANAGER THERE ARE NO FAVORITES YET AND IT'S UNCERTAIN WHETHER LAST YEAR'S CHAMP SCOTT THE HAMMER BISKNER TWENTY FOUR YEARS OLD A MACHINIST FROM BAY CITY WILL COMPETE A NEWLYWED HE SAYS HIS PRIORITIES ARE SHIFTING BUT DON'T COUNT HIM OUT I'M STILL THINKING ABOUT IT HE SAYS SET PREDICTS IT WILL PULL IN SOME TWO HUNDRED THOUSAND PAY PER VIEW ORDERS FOR THE LAS VEGAS EVENT ITS PROJECTED GROSS WILL BE ABOUT THREE MILLION DOLLAR SMALL COMPARED WITH THE TWENTY MILLION DOLLARS TO FIFTY MILLION DOLLARS A FIRST RANK HEAVYWEIGHT CONTEST CAN DRAW BUT ATTRACTIVE ENOUGH FOR SET TO BUY TEN YEARS' RIGHTS TO TOUGHMAN MR. DORE FOR ONE IS CERTAIN VIEWERS WILL JUMP AT THE CHANCE TO PAY FOURTEEN DOLLARS AND NINETY FIVE CENTS TO SEE NO NAME AMATEURS FIGHT QUOTE SOME PEOPLE LIKE TO WATCH GOLF QUOTE HE SAYS SOME PEOPLE LIKE TO FISH AND SOME LIKE TO WATCH FIGHTS THEY'RE GONNA GO BONKERS PRUDENTIAL SECURITIES INCORPORATED IS GOING TO UNUSUAL LENGTHS TO SHORE UP ITS BATTERED CORPORATE IMAGE THE NATION'S FOURTH LARGEST BROKERAGE FIRM NAMED JOHN F. SETTEL A FORMER COLLEGE PROFESSOR WHO TAUGHT COURSES IN BUSINESS ETHICS TO THE NEW POST OF QUOTE CORPORATE VALUES OFFICER QUOTE MEANWHILE PRUDENTIAL LAUNCHED A NEW ADVERTISING CAMPAIGN FOCUSING ON STRAIGHT TALK OR AS PRUDENTIAL PUTS IT THE HONESTY AND CANDOR NECESSARY IN THE BROKER SLASH CLIENT RELATIONSHIP THE MOVES ARE A BID BY THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT TO STAVE OFF A DRUMBEAT OF NEGATIVE PUBLICITY STEMMING FROM ITS LIMITED PARTNERSHIP SCANDAL PRUDENTIAL HAS AGREED TO PAY AT LEAST THREE HUNDRED SEVENTY ONE MILLION DOLLARS IN FINES AND PENALTIES TO SETTLE FEDERAL AND STATE CHARGES THAT IT IMPROPERLY SOLD EIGHT POINT ONE FIVE BILLION DOLLARS OF PARTNERSHIPS IN THE NINETEEN EIGHTIES PRUDENTIAL HAS A RESPONSIBILITY TO MAINTAIN AND ENHANCE THE QUALITY AND HIGH STANDARDS OF ITS SERVICES PRODUCTS AND STAFF JOHN P. MURRAY PRUDENTIAL'S CORPORATE RISK MANAGEMENT DIRECTOR SAID OF THE SETTEL APPOINTMENT MR. SETTEL WHO ALSO IS A FORMER PRUDENTIAL DIRECTOR WHO WORKED AT THE FIRM BETWEEN NINETEEN SEVENTY FOUR AND NINETEEN EIGHTY NINE WILL OVERSEE THE IMPLEMENTATION OF THE FIRM'S POLICIES AND DAILY BUSINESS AMONG MR. SETTEL'S PRIOR POSTS AT PRUDENTIAL WAS DIRECTOR OF CORPORATE TRAINING HE ALSO HAD SERVED FOR SEVERAL YEARS ON THE NEW YORK STOCK EXCHANGE HEARING BOARD PRUDENTIAL'S NEW ADS WHICH DEBUTED OVER THE WEEKEND WILL FEATURE THE FIRM'S BROKERS AND CLIENTS IN THE FIRST PRINT ADS HARDWICK SIMMONS PRUDENTIAL SECURITIES' PRESIDENT AND CHIEF EXECUTIVE SAYS STRAIGHT TALK MEANS IF WE FALL SHORT WE'LL HEAR ABOUT IT THAT'S GOOD IT MAKES US DO BETTER MR. SIMMONS STANDING WITH HEAD SLIGHTLY COCKED AND HANDS STUFFED IN HIS POCKETS ADDS STRAIGHT TALK MEANS OUR INVESTORS HEAR THE UPSIDE AND DOWNSIDE OF EVERY OPPORTUNITY SAYS RONNA LICHTENBERG PRUDENTIAL'S MARKETING DIRECTOR QUOTE THIS REPRESENTS A SIGNIFICANT DEPARTURE FROM THE TRADITIONAL BROKERAGE ADS OF THE PAST QUOTE INDEED PRUDENTIAL'S PRIOR AD CAMPAIGN FEATURED THE SLOGAN THE MOST IMPORTANT THING WE EARN IS YOUR TRUST AS CORPORATE AMERICA RATCHETS UP ITS CAPITAL SPENDING IT'S DOING SO WITH A MUCH KEENER EYE TO PROFITING FROM THE EFFORT A GROWING NUMBER OF COMPANIES IN THE U. S. ARE SETTING AGGRESSIVE RETURN ON INVESTMENT HURDLES FOR CAPITAL SPENDING THE MONEY THAT'S SPENT ON NEW MACHINES COMPUTERS AND OTHER EQUIPMENT LAST FALL R. J. R. NABISCO INCORPORATED TOLD ITS MANAGERS THAT NEW CAPITAL EXPENDITURES MUST CUT THE TOBACCO AND FOOD COMPANY'S COSTS BY AN AMOUNT EQUAL TO TWENTY PERCENT OF THE INVESTMENT AND IN THE FIRST YEAR TELECOMMUNICATIONS GIANT AMERICAN TELEPHONE AND TELEGRAPH COMPANY HAS ALSO SET TOUGH NEW GUIDELINES THAT SIMILARLY HOLD CAPITAL SPENDERS' FEET TO THE FIRE COMPANIES OF COURSE HAVE ALWAYS DEMANDED A CERTAIN RATE OF RETURN FOR EQUIPMENT SPENDING BUT IN THE CURRENT CLIMATE OF SLOW SALES GROWTH IN THE U. S. CORPORATIONS ARE INSISTING ON HIGHER AND MORE IMMEDIATE RETURNS IN AN ODD WAY CAPITAL SPENDING HAS BECOME SOMETHING OF A PROFIT CENTER QUOTE CHIEF EXECUTIVES ARE BECOMING MUCH MORE DISCIPLINED ABOUT SAYING O. K. QUOTE TO SPENDING REQUESTS SAYS ENNIUS BERGSMA OF MCKINSEY AND COMPANY THE MANAGEMENT CONSULTING FIRM THEY WANT TO KNOW WHAT WILL HAPPEN IN YEAR ONE TWO AND THREE RATHER THAN PLOW MONEY IN AND REALIZE NOTHING MATERIALIZED NOTABLY THE SHARPER SCRUTINY ISN'T SCARING SPENDING PROJECTS AWAY ECONOMISTS SAY THAT FOR THE SECOND YEAR IN A ROW COMPANIES THIS YEAR ARE EXPECTED TO BOOST SPENDING ON EQUIPMENT BY MORE THAN TWELVE PERCENT D. R. I. SLASH MCGRAW HILL WHICH FORECASTS ECONOMIC TRENDS SEES CAPITAL SPENDING ON EQUIPMENT IN THE U. S. REACHING A RECORD FOUR HUNDRED FIFTY SEVEN BILLION DOLLARS THIS YEAR IT EXPECTS CAPITAL SPENDING IN TOTAL WHICH INCLUDES THE CONSTRUCTION OF NEW PLANTS TO REACH SIX HUNDRED TEN BILLION DOLLARS UP ELEVEN PERCENT FROM NINETEEN NINETY THREE WE KEEP SEEING NEW OPPORTUNITIES FOR SAVING MONEY THROUGH CAPITAL INVESTMENTS SAYS REUBEN MARK CHIEF EXECUTIVE OF COLGATE PALMOLIVE COMPANY THE BIG MAKER OF HOUSEHOLD AND PERSONAL CARE PRODUCTS ONE RECENT OPPORTUNITY INVOLVED THE COMPANY'S ITALIAN UNIT WHERE COLGATE INSTALLED ONE MILLION DOLLARS WORTH OF NEW AUTOMATED EQUIPMENT FOR PACKAGING THE COMPANY'S STAND UP TOOTHPASTE TUBES THE MACHINES REPLACED SOME WORKERS ESTIMATED SAVINGS TO COLGATE IN THE FIRST YEAR TWO HUNDRED FIFTY THOUSAND DOLLARS THE COMPANY IS DEMANDING MORE OF THIS SORT OF COST SAVING INVESTMENT FROM ITS MANAGERS IN NINETEEN NINETY FOUR IT WANTS TOTAL CAPITAL EXPENDITURES TO EQUAL SIX PERCENT OF SALES UP FROM FIVE POINT TWO PERCENT OF SALES LAST YEAR WHEN MR. MARK BECAME CHIEF EXECUTIVE IN NINETEEN EIGHTY FOUR ROUGHLY THIRTEEN PERCENT OF COLGATE'S TOTAL CAPITAL SPENDING WAS GOING TOWARD COST SAVING VENTURES THE REST WENT INTO BUILDING NEW PLANTS AMONG OTHER THINGS NOW THE COMPANY IS DEMANDING THAT FULLY SIXTY PERCENT OF ITS CAPITAL SPENDING BE FOR COST SAVING PROJECTS COLGATE EVEN HAS ASSIGNED A FORCE OF SPENDING POLICE TO TRACK THE RATE OF RETURN ON CAPITAL EXPENDITURES THIS IS NOT MISTY INGMAR BERGMAN STUFF SAYS MR. MARK IN FACT PART OF A MANAGER'S COMPENSATION IS DETERMINED BY HOW WELL HE OR SHE MEETS THE CAP SPENDING GUIDELINES WE'RE IN A BRAVE NEW WORLD EXPLAINS LAWRENCE RICCIARDI PRESIDENT OF R. J. R. NABISCO IN THE PAST MANY COMPANIES WERE LESS PRECISE ABOUT BUDGETING FOR CAPITAL SPENDING THAN BUDGETING FOR PROFIT AND LOSS HE SAYS QUOTE I KNOW THIS HAS CHANGED AT R. J. R. QUOTE THE COMPANY FOR EXAMPLE IS SPENDING SIXTY TWO MILLION DOLLARS THIS YEAR TO INSTALL THREE LARGER OVENS AT ITS CHICAGO BAKERY OPERATIONS R. J. R. A UNIT OF R. J. R. NABISCO HOLDINGS CORPORATION EXPECTS THE NEW OVENS WILL LET IT PRODUCE MORE COOKIES IN THE SAME AMOUNT OF TIME AS ITS OLD EQUIPMENT AND EMPLOY FEWER WORKERS TO MONITOR THE PROCESS THE COMPANY ALSO EXPECTS THE OVENS TO PRODUCE TWELVE MILLION DOLLARS IN COST SAVINGS AND OTHER BENEFITS IN THEIR FIRST YEAR OF OPERATION AT EATON CORPORATION THE BIG AUTO PARTS SUPPLIER PRESIDENT JOHN RODEWIG SAYS HIS SCRUTINY OF CAPITAL SPENDING IS ALSO MORE INTENSE THAN IT WAS A FEW YEARS AGO NOW WHEN THE COMPANY REPLACES AN OLD MACHINE WITH A NEW ONE WE LOOK VERY STRINGENTLY FOR PRODUCTIVITY IMPROVEMENTS AND INCREASED FLEXIBILITY HE SAYS ONE OF THE WAYS EATON PUSHES MANAGERS TO MAKE WISER SPENDING DECISIONS IS BY MEASURING THE RETURN ON THE INVESTMENT WITHOUT DEPRECIATION BY EXCLUDING DEPRECIATION WHICH EXPENSES THE COST OF EQUIPMENT OVER A NUMBER OF YEARS THE CAPITAL COST IS HIGHER ON PAPER FOR MANAGERS THAT RAISES THE BAR FOR RETURN ON INVESTMENT EXACTLY WHAT EATON INTENDED A. T. AND T. SET HIGHER STANDARDS FOR CAPITAL SPENDING LAST YEAR AND TIED MANAGEMENT COMPENSATION TO HOW WELL THE INVESTMENTS PERFORM THE NEW SYSTEM ENCOURAGES MANAGERS TO ACT LIKE THEY ARE RUNNING THEIR OWN BUSINESS SAYS JAMES MEENAN CHIEF FINANCIAL OFFICER OF THE LONG DISTANCE DIVISION IT EVEN ATTEMPTS TO MEASURE INTANGIBLES SUCH AS WHETHER A CUSTOMER STAYS WITH A. T. AND T. BECAUSE CAPITAL SPENDING IMPROVED SERVICE MORE AND MORE SPENDING DECISIONS INVOLVE CONSIDERATIONS OF THIS SORT NOTES ROBERT MILLER A MACHINE TOOL MARKETING CONSULTANT WHO RUNS HIS OWN FIRM ITMC IN CLEVELAND INDEED HE SAYS CORPORATE AMERICA CAN EXPECT TO SEE MORE PRODUCTION MANAGERS CALLING THEIR COLLEAGUES IN CUSTOMER SERVICE MARKETING ENGINEERING AND OTHER DEPARTMENTS TO DRUM UP GOOD ARGUMENTS FOR THEIR NEXT CAPITAL SPENDING PROPOSALS BAKING SODA TOOTHPASTES SHOWER GELS AND HOME DIAGNOSTIC PRODUCTS CONTINUE TO TOP THE LIST OF FAST GROWING HEALTH AND BEAUTY CARE PRODUCTS TODAY NEW PRODUCTS BACKED BY HEFTY AD BUDGETS CONTRIBUTED TO THE GROWTH OF MANY BESTSELLERS IN THE FOURTH QUARTER QUARTERLY SALES OF BAKING SODA TOOTHPASTES IN SUPERMARKETS AND DRUGSTORES GREW EIGHTY PERCENT FROM A YEAR EARLIER ACCORDING TO TOWNE OLLER AND ASSOCIATES A UNIT OF INFORMATION RESOURCES INCORPORATED THAT GROWTH LARGELY REFLECTS THE INTRODUCTION OF PROCTER AND GAMBLE COMPANY'S CREST WITH BAKING SODA AND UNILEVER GROUP'S MENTADENT NEW PRODUCTS SUCH AS NIVEA MADE BY THE U. S. UNIT OF GERMANY'S BEIERSDORF A. G. ALSO SPURRED SALES OF SHOWER GELS OR LIQUID BATH SOAPS SALES IN THE CATEGORY INCREASED FORTY SEVEN PERCENT FOR THE QUARTER AMERICANS' GROWING DESIRE TO TAKE MORE CONTROL OF THEIR OWN HEALTH CARE KEPT SALES OF SEVERAL HOME DIAGNOSTIC PRODUCTS STRONG NEW TO THE LIST THIS QUARTER DIGITAL THERMOMETERS WHOSE SALES INCREASED SEVENTY TWO PERCENT DRIVING THAT GROWTH WAS THE THERMOSCAN INSTANT THERMOMETER WHICH SELLS FOR ABOUT ONE HUNDRED DOLLARS INSERTED IN THE EAR THE GADGET MADE BY THERMOSCAN INCORPORATED OF SAN DIEGO MEASURES THE EMISSION OF INFRARED RADIATION FROM THE EARDRUM AND CONVERTS IT INTO A CONVENTIONAL TEMPERATURE READING A COMPANY SPOKESMAN SAID THE PRODUCT WHICH GIVES A READING IN ONE SECOND IS POPULAR AMONG PARENTS OF SMALL CHILDREN EACH QUARTER TOWNE OLLER COMPILES LISTS OF THE FASTEST GROWING AND FASTEST DECLINING HEALTH AND BEAUTY CARE PRODUCTS EXCLUSIVELY FOR THE WALL STREET JOURNAL THE ROSTERS ARE BASED ON PRODUCT SHIPMENTS RECEIVED BY THIRTY THOUSAND FOUR HUNDRED SUPERMARKETS AND TWELVE THOUSAND NINE HUNDRED DRUGSTORES TOWNE OLLER RANKS THREE HUNDRED FIFTY PRODUCT CATEGORIES EACH WITH QUARTERLY SALES OF AT LEAST SIX MILLION DOLLARS BY PERCENTAGE CHANGE FROM THE YEAR EARLIER PERIOD OVER THE COUNTER CONTRACEPTIVES AIMED AT WOMEN INCLUDING CONTRACEPTIVE SPONGES AND SPERMICIDES WERE AMONG THE FASTEST DECLINING PRODUCTS QUARTERLY SALES OF CONTRACEPTIVES FELL TWENTY PERCENT AS WOMEN CONTINUE TO SWITCH TO PRESCRIPTION METHODS OF BIRTH CONTROL SALES OF OVER THE COUNTER YEAST INFECTION TREAMENTS DECLINED ELEVEN PERCENT AS GROWING NUMBERS OF WOMEN FIND THEM INCONVENIENT TO USE MEANWHILE THE RISE OF THE QUOTE NATURAL LOOK QUOTE HURT SALES OF HAIRSTYLING SPRITZES AND NAIL POLISHES WHICH FELL EIGHTEEN PERCENT AND SIXTEEN PERCENT RESPECTIVELY NOVACARE INCORPORATED SAID IT COMPLETED ITS MERGER WITH REHABCLINICS INCORPORATED FRIDAY AFTER STOCKHOLDERS OF BOTH REHABILITATION SERVICES COMPANIES APPROVED A STOCK SWAP VALUED AT ABOUT TWO HUNDRED MILLION DOLLARS EACH SHARE OUTSTANDING OF REHABCLINICS COMMON STOCK WAS EXCHANGED FOR ONE POINT SIX SHARES OF NOVACARE COMMON STOCK NOVACARE WHICH HAD ABOUT FIFTY MILLION SHARES OUTSTANDING ALSO ISSUED ABOUT FOURTEEN MILLION NEW SHARES THE NEW COMPANY WILL USE THE NOVACARE NAME BARGAIN HUNTING BY SMALL COMPANY STOCK INVESTORS REVERSED AN EARLY MORNING SELL OFF GIVING THE SMALL CAPITALIZATION MARKET A MARGINAL BOUNCE AFTER FRIDAY'S SHARP TWO POINT TWO ONE PERCENT DECLINE IN THE RUSSELL TWO THOUSAND INDEX THE RUSSELL WHICH TRACKS THE PERFORMANCE OF SMALL CAP STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR EXCHANGES CLOSED UP ZERO POINT ZERO ONE POINT VIRTUALLY UNCHANGED FROM FRIDAY AT TWO HUNDRED SIXTY ONE POINT SIX EIGHT AFTER FALLING NEARLY THREE POINTS IN EARLY TRADING YESTERDAY ON FRIDAY NEWS THAT THE FEDERAL RESERVE WAS RAISING SHORT TERM INTEREST RATES SENT THE RUSSELL INDEX DOWN FIVE POINT NINE OH POINTS WHILE THE NASDAQ COMPOSITE INDEX DROPPED TWENTY POINT FIVE ONE DESPITE NERVOUSNESS ABOUT THE POTENTIAL FOR FURTHER RATE INCREASES BY THE FED ANALYSTS VOICED CAUTIOUS OPTIMISM ABOUT THE STRENGTH OF THE SMALL CAP MARKET QUOTE PEOPLE ARE LOOKING FOR BARGAINS BUT THERE'S STILL A MODEST UNDERCURRENT OF UNCERTAINTY QUOTE SAID WILLIAM ROTHE HEAD OF NASDAQ TRADING AT ALEXANDER BROWN AND SONS IN NEW YORK PEOPLE DON'T KNOW WHETHER WHAT HAPPENED WITH THE FED ON FRIDAY WAS AN ABERRATION OR THE BEGINNING OF A PROTRACTED RISE IN INTEREST RATES CHRIS MCLELLAN PARTNER IN CHARGE OF TRADING AT ROBERTSON STEPHENS AND COMPANY IN SAN FRANCISCO SAID THERE WAS PAIN EVIDENT IN THE MARKET BUT THAT SEVERAL SECTORS INCLUDING SOFTWARE ORIENTED TECHNOLOGY STOCKS LOOKED STRONG THERE'S BEEN SOME REAL DAMAGE DONE AS A RESULT OF FRIDAY'S FED MOVE MR. MCLELLAN SAID IT WILL TAKE MORE THAN ONE DAY'S REACTION AND BOUNCE TO CONVINCE PEOPLE THAT THE FED TIGHTENING IS NOT SOMEWHAT OMINOUS LONG TERM IN COMPANY NEWS SHARES IN MANHASSET N. Y. BASED SPECTRUM INFORMATION PLUNGED SIXTY PERCENT ON MASSIVE VOLUME NEWS THAT FORMER APPLE COMPUTER EXECUTIVE JOHN SCULLEY WAS RESIGNING AFTER A BRIEF STINT AT THE HELM OF THE TINY WIRELESS COMPANY AND THAT SPECTRUM WAS RESTATING ITS FISCAL FIRST HALF NINETEEN NINETY FOUR EARNINGS SENT THE STOCK DOWN THREE AND FIVE SIXTEENTHS TO TWO AND ONE QUARTER THE DECLINE CAME ON EXTRAORDINARILY HEAVY VOLUME OF THIRTY FIVE POINT FOUR MILLION SHARES THE LARGEST EVER FOR A SINGLE NASDAQ STOCK AND ABOUT HALF OF THE ROUGHLY SEVENTY TWO MILLION SPECTRUM SHARES OUTSTANDING IRONICALLY THE PREVIOUS VOLUME RECORD OF THIRTY FOUR POINT FIVE MILLION SHARES ALSO HAD BEEN SET BY SPECTRUM ON MAY TWENTIETH THE DAY AMERICAN TELEPHONE AND TELEGRAPH COMPANY REBUFFED CLAIMS BY SPECTRUM PRESIDENT PETER CASERTA ABOUT THE VALUE OF SPECTRUM'S PATENTLICENSING DEAL WITH A. T. AND T. MR. SCULLEY SAID HE WAS RESIGNING BECAUSE HE FELT HE WAS DELIBERATELY MISLED BY MR. CASERTA WHEN INDUCED TO JOIN THE COMPANY IN OCTOBER IN A STATEMENT EARLY YESTERDAY MR. SCULLEY CITED RECENT EVENTS WHICH HAVE MADE IT CLEAR THAT ASPECTS OF SPECTRUM'S BUSINESS ARE NOT WHAT THEY WERE REPRESENTED TO BE WHEN I JOINED THE COMPANY MR. SCULLEY SAID HE WASN'T INFORMED OF ACCOUNTING PROBLEMS AND AN IMPENDING SECURITIES AND EXCHANGE COMMISSION PROBE HE SAID SPECTRUM'S AUDITORS K. P. M. G. PEAT MARWICK INFORMED HIM LAST WEEK THAT THE AUDITORS COULD NOT SUPPORT THE CURRENT METHOD OF ACCOUNTING USED BY SPECTRUM WITH RESPECT TO REVENUE RECOGNITION HE SAID HE DIRECTED SPECTRUM TO RESTATE ITS FINANCIAL STATEMENTS IN ACCORDANCE WITH K. P. M. G.'S RECOMMENDATIONS SPECTRUM IN A STATEMENT LATE YESTERDAY REJECTED MR. SCULLEY'S CLAIM THAT HE WAS NOT AWARE OF THE COMPANY'S OPERATIONS WHEN HE JOINED PRIOR TO AND DURING HIS TERM AT SPECTRUM MR. SCULLEY WAS FULLY AWARE OF THE CIRCUMSTANCES THAT HE NOW CITES AS HIS REASONS FOR DEPARTING SPECTRUM SAID THE COMPANY ADDED THAT QUOTE ITS MOST SIGNIFICANT ASSETS INCLUDING ITS VALUABLE PATENT PORTFOLIO AND RELATED LICENSING AGREEMENTS ARE NOT AFFECTED BY MR. SCULLEY'S DEPARTURE QUOTE ELSEWHERE IN THE TECHNOLOGY GROUP LASERMASTER TECHNOLOGIES EDEN PRAIRIE MINNESOTA CLIMBED TWO TO FIFTEEN TECNOMATIX TECHNOLOGIES AN ISRAELI SOFTWARE DEVELOPER ADDED ONE TO TEN AND FOURTH SHIFT A MINNEAPOLIS SOFTWARE CONCERN GAINED ONE TO TEN AND ONE QUARTER AMERICA ONLINE STOCK SURGED FIVE AND THREE QUARTERS OR EIGHT POINT NINE PERCENT TO CLOSE AT SEVENTY AND ONE HALF ON ALMOST TRIPLE ITS USUAL VOLUME SAPIENS INTERNATIONAL OF CURACAO NETHERLANDS ANTILLES ROSE ONE AND THREE QUARTERS TO NINETEEN ON A POSITIVE ARTICLE IN THIS WEEK'S ISSUE OF BARRON'S MAGAZINE PLATINUM SOFTWARE JUMPED ONE AND THREE EIGHTHS TO FOURTEEN AND ONE HALF THE IRVINE CALIFORNIA COMPANY SAID IT GOT AN ORDER FOR ITS SEQUEL TO PLATINUM CLIENT SLASH SERVER SOFTWARE AND THE LOCAL AREA NETWORK BASED PLATINUM SERIES FROM HUNTINGTON INTERNATIONAL HOLDINGS P. L. C. THE EXACT AMOUNT OF THE ORDER WAS NOT DISCLOSED BUT A PLATINUM SPOKESMAN CALLED IT A MULTIMILLION DOLLAR CONTRACT ANOTHER HIGHFLYING GROUP WAS THE HEALTH CARE SECTOR LASERSCOPE A SAN JOSE CALIFORNIA DESIGNER OF SURGICAL LASER SYSTEMS ROSE ONE QUARTER TO SIX AND ONE EIGHTH WHILE ATRIX LABORATORIES A FORT COLLINS COLORADO DRUG DELIVERY SYSTEM DEVELOPER ADDED FIVE EIGHTHS TO SEVEN AND ONE QUARTER COASTCAST RANCHO DOMINGUEZ CALIFORNIA ROSE THREE AND THREE QUARTERS TO THIRTY ON THE NEW YORK STOCK EXCHANGE GOLFER JOHNNY MILLER A SPOKESMAN FOR CALLAWAY GOLF WON THE A. T. AND T. PEBBLE BEACH NATIONAL PRO AM TOURNAMENT SUNDAY USING CALLAWAY CLUBS COASTCAST SUPPLIES CLUB HEADS TO CALLAWAY CALLAWAY GOLF CLOSED UP FOUR AND ONE QUARTER AT SIXTY EIGHT AND THREE QUARTERS ON THE BIG BOARD STANDARD AND POOR'S CORPORATION LOWERED ITS RATINGS ON ABOUT EIGHT HUNDRED EIGHTY SIX MILLION DOLLARS OF THIS DRUG RETAILER'S DEBT EXPRESSING PARTICULAR CONCERN WITH THE COMPANY'S QUOTE WILLINGNESS TO INCREASE LEVERAGE QUOTE S. AND P. LOWERED SENIOR UNSECURED DEBT TO SINGLE A MINUS FROM SINGLE A THE COMPANY WAS PLACED ON S. AND P'S CREDITWATCH LIST JANUARY SEVENTH S. AND P. SAID RITE AID'S INCREASED FINANCIAL RISK IS PARTIALLY OFFSET BY EXCEPTIONAL OPERATING MARGINS AND STRONG MARKET POSITION IN AN INDUSTRY WITH FAVORABLE GROWTH CHARACTERISTICS THE COMPANY RECENTLY ANNOUNCED PLANS TO REPURCHASE TWENTY TWO MILLION COMMON SHARES SELL NONCORE OPERATIONS AND CLOSE TWO HUNDRED UNDERPERFORMING DRUGSTORES PRESIDENT CLINTON'S ONE POINT FIVE TRILLION DOLLAR BUDGET FOR FISCAL NINETEEN NINETY FIVE IS AN EXERCISE IN LIMITS AND RESTRAINT IT PRESERVES THE STRICT SPENDING LIMITS IMPOSED IN LAST YEAR'S DEFICIT REDUCTION LAW WHILE SHRINKING THE DEFICIT FOR THE THIRD YEAR IN A ROW TO ONE HUNDRED SIXTY FIVE POINT ONE BILLION DOLLARS THIS YEAR IT WOULD GIVE SOME ONE HUNDRED FIFTEEN SPENDING PROGRAMS THE AX AND SQUEEZE OUT ABOUT ONE HUNDRED EIGHTEEN THOUSAND FEDERAL JOBS IN PURSUIT OF SOME ADMINISTRATION QUOTE INVESTMENTS QUOTE NATIONAL HEALTH CARE WORKER TRAINING AND TAX BREAKS FOR INNER CITY QUOTE EMPOWERMENT QUOTE ZONES THE BUDGET WOULD CUT OTHER PROGRAMS DEAR TO THE HEARTS OF MOST DEMOCRATS SUBSIDIES FOR PUBLIC HOUSING CROP INSURANCE AND OTHERS WERE SLASHED TO MAKE WAY FOR NEW PRIORITIES THE PLAN WOULDN'T RAISE TAXES BEYOND LAST YEAR'S INCREASES ASIDE FROM A CIGARETTE TAX TO PAY FOR HEALTH CARE IT FORCED THE PRESIDENT AND CONGRESS TO MAKE FUNDAMENTAL PRIORITY JUDGMENTS SAID LEON PANETTA DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET I HONESTLY BELIEVE THAT THAT'S A VERY HEALTHY DEBATE NUTRITION SPENDING WOULD RISE WHILE OUTLAYS FOR MANY FARM SUBSIDY SOIL CONSERVATION AND OTHER PROGRAMS WOULD BE ELIMINATED OR CUT THE BUDGET WOULD BOOST SPENDING FOR LOW INCOME PREGNANT WOMEN INFANTS AND CHILDREN BY TEN PERCENT TO THREE POINT FIVE FOUR BILLION DOLLARS IN FISCAL NINETEEN NINETY FIVE AN AVERAGE OF SEVEN POINT TWO MILLION MONTHLY RECIPIENTS WOULD RECEIVE BENEFITS UNDER THE PROGRAM UP FROM SIX POINT FIVE MILLION CURRENTLY CHILD NUTRITION OUTLAYS WOULD RISE MODESTLY EMPHASIS WOULD BE PLACED ON EDUCATING STUDENTS AND TRAINING FOOD SERVICE WORKERS ABOUT THE IMPORTANCE OF BETTER SCHOOL MEALS THE FOOD SAFETY AND INSPECTION SERVICE WOULD RECEIVE FUNDS TO HIRE TWO HUNDRED ADDITIONAL MEAT AND POULTRY INSPECTORS AND TO STEP UP RESEARCH THE ADMINISTRATION BUDGET ALSO ASSUMES SAVING FIFTY THREE POINT FIVE MILLION DOLLARS BY PHASING OUT SUBSIDIES FOR HONEY WOOL AND MOHAIR CONGRESS ALREADY HAS ORDERED ENDING THE LATTER TWO SUBSIDIES AND IS CONSIDERING DROPPING HONEY SUBSIDIES OUTLAYS FOR THE AGRICULTURE DEPARTMENT'S BIG CROP SUBSIDY PROGRAM WOULD FALL THIRTY PERCENT TO EIGHT POINT FIVE BILLION DOLLARS A PROJECTION BASED ON EXPECTED LOWER HARVESTS DURING CALENDAR NINETEEN NINETY FOUR FARMERS WOULD HAVE TO ENROLL IN THE FEDERAL CROP INSURANCE PROGRAM TO BE ELIGIBLE FOR CROP SUBSIDIES AND DISASTER AID SOIL CONSERVATION SERVICE OUTLAYS FOR WATERSHED AND FLOOD PREVENTION PROGRAMS WOULD BE SLASHED SIXTY FIVE PERCENT TO ONE HUNDRED FIVE MILLION DOLLARS WITH A NINETY ONE PERCENT REDUCTION IN BUDGET AUTHORITY PRESAGING FURTHER SPENDING CUTS LATER NO SWEEPING NEW ENVIRONMENTAL PROPOSALS ADORN THE BUDGET BUT THE PLAN DOES CALL FOR INCREASED SPENDING IN A FEW TARGETED AREAS HIGH PRIORITY ITEMS THAT WOULD RECEIVE MORE FUNDS INCLUDE THE WHITE HOUSE'S PLAN TO FIGHT GLOBAL WARMING THE NINETEEN NINETY CLEAN AIR ACT ENERGY CONSERVATION PROGRAMS EFFORTS TO PROMOTE SOLAR AND RENEWABLE ENERGY WETLANDS RESTORATION AND PESTICIDE REDUCTION INITIATIVES AND SEVERAL EXISTING ECOSYSTEM RESTORATION PLANS THE MOST SIGNIFICANT OF WHICH INVOLVES THE FLORIDA EVERGLADES IN ADDITION THE ADMINISTRATION PROPOSES NEW SPENDING FOR A VARIETY OF INTERNATIONAL PROGRAMS THAT FOLLOW UP ON THE NINETEEN NINETY TWO EARTH SUMMIT LAST YEAR THE ENVIRONMENTAL PROTECTION AGENCY'S BUDGET WAS WHACKED BY MORE THAN NINE HUNDRED MILLION DOLLARS WHEN A PLAN TO ACCELERATE SPENDING FOR SEWAGE TREATMENT WENT DOWN WITH THE PRESIDENT'S STIMULUS PACKAGE THIS YEAR THE AGENCY'S OUTLAYS WILL RISE TO SIX POINT SEVEN BILLION DOLLARS FROM SIX POINT FIVE BILLION DOLLARS WHILE THE RATE OF INCREASE WON'T SIGNIFICANTLY EXCEED INFLATION THE E. P. A. SAID A LARGE INCREASE IN BUDGET AUTHORITY WOULD MEAN BIGGER OUTLAY INCREASES IN FUTURE YEARS IT ALSO SAID THAT BY CONCENTRATING SPENDING ON OPERATING PROGRAMS THIS YEAR IT WILL BE ABLE TO HIRE MORE THAN SEVEN HUNDRED NEW EMPLOYEES AND TO BOOST ITS REGULATORY AND ENFORCEMENT EFFORTS WITH THE CHANGE THE AGENCY WILL BE ABLE TO ENFORCE THE LAWS MORE FULLY SAYS MARC SMOLONSKY A BUDGET ANALYST FOR THE NONPROFIT ENVIRONMENTAL WORKING GROUP INTERIOR DEPARTMENT OUTLAYS WOULD HOLD STEADY FROM LAST YEAR AT SEVEN POINT TWO BILLION DOLLARS AT THE ENERGY DEPARTMENT THEY WOULD DROP NEARLY NINE PERCENT TO FIFTEEN POINT SEVEN BILLION DOLLARS MOST OF THE CUTS WOULD BE IN DEFENSE RELATED PROGRAMS THE ADMINISTRATION PROPOSES NEW SPENDING TO PROMOTE ECONOMIC DEVELOPMENT AND TO HELP LOW INCOME PEOPLE IN DEPRESSED AREAS WHILE IT WOULD CUT FUNDS FOR PUBLIC HOUSING THE BUDGET FOR THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PROPOSES A PACKAGE OF TAX INCENTIVES AND WAGE CREDITS FOR EMPLOYERS AS WELL AS SOCIAL SERVICE GRANTS FOR LOCAL GOVERNMENTS IN SO CALLED EMPOWERMENT ZONES SIX LARGE CITIES AND ONE MIDSIZED CITY WOULD QUALIFY FOR THE AID SMALLER GRANTS WILL BE DIVIDED AMONG NINETY FIVE URBAN AND RURAL ENTERPRISE ZONES THE PROPOSED NINETEEN NINETY FIVE BUDGET WOULD OFFER FIVE HUNDRED MILLION DOLLARS IN GRANTS TO FINANCE CAPITAL PROJECTS INCLUDING HOUSING IN ZONES THAT WILL BE SELECTED BY THE ADMINISTRATION IN THE LATE SUMMER OR EARLY FALL FUNDS FOR RURAL ENTERPRISE ZONES WOULD COME FROM THE AGRICULTURE DEPARTMENT THE AMOUNT HUD WOULD BE AUTHORIZED TO SPEND ON VARIOUS PUBLIC ELDERLY AND LOW INCOME HOUSING WOULD DROP STEEPLY TO FOUR POINT SEVEN BILLION DOLLARS FROM SEVEN POINT SEVEN FIVE BILLION DOLLARS IN NINETEEN NINETY FOUR ONE THIRD OF THE REDUCTION WOULD INVOLVE GRANTS FOR ELDERLY HOUSING BECAUSE OF THE LONG LEAD TIME IN HOUSING PROGRAMS THE FULL EFFECTS OF THOSE CUTS PROBABLY WOULDN'T BE FELT FOR THREE TO FIVE YEARS BUT THE PROPOSED BUDGET WOULD REDUCE NINETEEN NINETY FIVE OUTLAYS FOR PUBLIC HOUSING DEVELOPMENT BY TWENTY THREE MILLION DOLLARS TO AN ESTIMATED FIVE HUNDRED TWENTY NINE MILLION DOLLARS OVERALL NEW AND PREVIOUSLY COMMITTED SPENDING WOULD RESULT IN TOTAL HUD OUTLAYS OF TWENTY NINE POINT FIVE BILLION DOLLARS AN INCREASE OF TWO BILLION DOLLARS FROM THE NINETEEN NINETY FOUR LEVEL STATE DEPARTMENT AND FOREIGN AID SPENDING WOULD DECLINE TO TWENTY POINT EIGHT BILLION DOLLARS FROM TWENTY ONE POINT EIGHT BILLION DOLLARS AS THE ADMINISTRATION FOCUSES ON POST COLD WAR SPENDING ON BROAD CATEGORIES SUCH AS BUILDING DEMOCRACY INSTEAD OF EARMARKING FUNDS FOR SPECIFIC NATIONS THE GIANT EXCEPTION WOULD BE FUNDS FOR ISRAEL AND EGYPT WHICH WON'T BE TOUCHED MOST OTHER BILATERAL SECURITY ASSISTANCE WILL DECLINE ALTHOUGH THE BUDGET IS SHORT ON SPECIFICS IN ITS PLACE THE ADMINISTRATION PROPOSES BROAD SPENDING CATEGORIES SUCH AS PROMOTING U. S. PROSPERITY AND PROMOTING PEACE THAT LINK DIPLOMACY AND ECONOMICS AND TRADE THE BUDGET SAYS AIDING RUSSIA AND THE FORMER SOVIET REPUBLICS REMAINS THE QUOTE CLEAREST LINK BETWEEN THE EXPANSION OF DEMOCRACY AND FREE MARKETS AND THE U. S. NATIONAL INTEREST QUOTE OUTLAYS FOR THIS CATEGORY WOULD RISE TO EIGHT HUNDRED EIGHTY SEVEN MILLION DOLLARS FROM SIX HUNDRED THIRTY FIVE MILLION DOLLARS THIS FISCAL YEAR SPENDING FOR MULTINATIONAL DEVELOPMENT BANKS WOULD RISE TO ONE POINT SEVEN BILLION DOLLARS FROM ONE POINT FOUR BILLION DOLLARS THE ADMINISTRATION'S EFFORT TO GET AWAY FROM COUNTRY SPECIFIC AID IS BOUND TO RANKLE SOME MEMBERS OF CONGRESS WHO LOOK OUT FOR SPECIAL INTERESTS THE WHITE HOUSE WANTS FLEXIBILITY TO SPEND THIS MONEY WHEN AND WHERE IT WISHES THEIR NOTION IS TRUST US WE'LL SPEND IT THE WAY YOU WANT SAYS A CONGRESSIONAL AIDE HE PREDICTS THAT THE PRESIDENT'S IDEA MAY SUCCEED IN THE HOUSE BECAUSE OF SUPPORT FROM PRO ISRAEL FORCES BUT THAT IT COULD FACE SOME DIFFICULTIES IN THE SENATE THE ADMINISTRATION FIGURES ITS HEALTH CARE PLAN IF IT PASSES CONGRESS THIS YEAR WOULD REQUIRE THREE POINT FIVE BILLION DOLLARS IN ADDITIONAL FEDERAL SPENDING IN FISCAL NINETEEN NINETY FIVE THE FIRST YEAR OF ITS PHASE IN SCHEDULE AT THE SAME TIME THE GOVERNMENT WOULD BE SAVING MONEY ON MEDICARE AND MEDICAID AND WOULDN'T BE SPENDING ALL THAT IT TOOK IN FROM A HIGHER TOBACCO TAX KNOCKING ELEVEN BILLION DOLLARS OFF THE DEFICIT AS THE PROGRAM IS PHASED IN IT WOULD WIDEN THE DEFICIT IN FISCAL NINETEEN NINETY SEVEN AND NINETEEN NINETY EIGHT BEFORE IT RESUMED NARROWING IT IN NINETEEN NINETY NINE FUNDING ON MOST PROGRAMS UNDER THE DEPARTMENT OF HEALTH AND HUMAN SERVICES WAS FROZEN TO FOCUS SPENDING INCREASES ON SOME SPECIFIC PROGRAMS OUTLAYS ON THE NATIONAL INSTITUTES OF HEALTH THE GOVERNMENT'S MAIN SOURCE OF MEDICAL RESEARCH GRANTS WOULD RISE SEVEN POINT FOUR PERCENT TO ELEVEN POINT OH TWO BILLION DOLLARS FROM TEN POINT TWO SIX BILLION DOLLARS THIS YEAR FUNDING WOULD RISE TWENTY EIGHT PERCENT FOR BREAST CANCER RESEARCH AND SIX PERCENT FOR AIDS RESEARCH SPENDING FOR THE FEDERAL GOVERNMENT'S PRINCIPAL AIDS TREATMENT PROGRAM THE RYAN WHITE COMMUNITY GRANTS TO COUNSEL AND CARE FOR PEOPLE INFECTED WITH THE HUMAN IMMUNODEFICIENCY VIRUS WOULD GROW TWENTY TWO POINT NINE FOUR PERCENT TO SIX HUNDRED TWENTY SEVEN MILLION DOLLARS FEDERAL SPENDING ON CHILDHOOD IMMUNIZATIONS ONE OF THE PRESIDENT AND HILLARY RODHAM CLINTON'S CHIEF INTERESTS WOULD MORE THAN DOUBLE TO NINE HUNDRED ONE MILLION DOLLARS FROM FOUR HUNDRED FORTY SIX MILLION DOLLARS THIS YEAR THAT INCLUDES FOUR HUNDRED TWENTY FOUR MILLION DOLLARS FOR THE ADMINISTRATION'S NEW FEDERAL VACCINE ENTITLEMENT PROGRAM WHICH IS SCHEDULED TO BEGIN IN OCTOBER THROUGH THE PROGRAM OFFICIALS HOPE TO RAISE CHILD IMMUNIZATION RATES TO NINETY PERCENT BY TWO THOUSAND THE ADMINISTRATION IS ALSO PROPOSING MORE MONEY FOR DRUG TREATMENT PROGRAMS INCLUDING TARGETING MORE PREVENTION EFFORTS TOWARD PREGNANT WOMEN AND EXPANDING TREATMENT FOR HARD CORE DRUG USERS OVERALL SPENDING ON THE DEPARTMENT'S DRUG TREATMENT PROGRAMS WOULD GROW TWENTY TWO POINT FOUR FOUR PERCENT TO EIGHT HUNDRED SIXTY TWO MILLION DOLLARS FROM SEVEN HUNDRED FOUR MILLION DOLLARS SCIENCE SPENDING WOULD GROW SLIGHTLY AS ONE OF MR. CLINTON'S FAVORED INVESTMENT AREAS BUT THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION IS FEELING THE STING OF WHAT AGENCY OFFICIALS CALL SEVERE CUTS TO ITS BUDGET FOR MANNED SPACE FLIGHTS NASA WOULD BE HELD TO FOURTEEN POINT FOUR SIX BILLION DOLLARS IN FISCAL NINETEEN NINETY FIVE ONLY TWO HUNDRED FIFTY MILLION DOLLARS MORE THAN THIS YEAR EVEN AS IT FACES MOUNTING COSTS TO BUILD AN INTERNATIONAL SPACE STATION AND COOPERATE WITH NEW RUSSIAN PARTNERS WHILE FREEZING SPACE STATION SPENDING THE PROPOSAL WOULD CUT ALMOST SIX PERCENT IN SPENDING AUTHORITY FROM SHUTTLE OPERATIONS IN UNMANNED SPACE FLIGHTS NASA ANNOUNCED IT WILL TRY TO RECOVER FROM THE ONE BILLION DOLLAR LOSS OF ITS MARS OBSERVER SPACECRAFT LAST SUMMER WITH A MARS SURVEYOR PROGRAM FEATURING SMALLER CHEAPER ORBITERS AND LANDERS THAT WOULD BE SENT TO MARS BEGINNING IN NOVEMBER NINETEEN NINETY SIX TOTAL RESEARCH SPENDING WOULD RISE THREE PERCENT THE CLINTON PLAN WOULD DEDICATE FORTY THREE POINT SIX PERCENT OF SEVENTY BILLION DOLLARS IN FEDERAL RESEARCH AND DEVELOPMENT SPENDING NEXT YEAR FOR CIVILIAN PROJECTS COMPARED WITH FORTY TWO POINT SEVEN PERCENT THIS FISCAL YEAR WITH THE REST FOR DEFENSE PROJECTS THE NATIONAL SCIENCE FOUNDATION A BIG BANKROLLER OF UNIVERSITY RESEARCH WAS A WINNER FOR A SECOND YEAR WITH A PROJECTED INCREASE OF SIX PERCENT BUT UNIVERSITIES AND NONPROFIT INSTITUTIONS THAT GET FEDERAL RESEARCH GRANTS COULD BE IN FOR A ONE YEAR FREEZE ON REIMBURSEMENT OF THEIR OVERHEAD COSTS WINNERS SCORING BUDGET INCREASES INCLUDE GLOBAL CLIMATE RESEARCH A FAVORITE OF VICE PRESIDENT AL GORE THE HUMAN GENOME PROJECT TO MAP ALL THE GENES IN THE HUMAN BODY THE ADVANCED NEUTRON SOURCE RESEARCH REACTOR PRINCETON'S TOKAMAK PHYSICS EXPERIMENT THAT LOOKS AT FUSION ENERGY AND THE B. MESON RESEARCH FACILITY AT STANFORD UNIVERSITY THAT WOULD EXPLORE THE NATURE OF MATTER IN A MOVE GREETED WITH DELIGHT BY ANTI NUCLEAR ACTIVISTS THE ENERGY DEPARTMENT SAID IT WOULD PULL THE PLUG ON THE ADVANCED LIQUID METAL REACTOR PRESIDENT CLINTON WANTS FUNDS TO HELP LOCAL GOVERNMENTS HIRE FIFTY THOUSAND ADDITIONAL POLICE OFFICERS INCREASE PRISON CONSTRUCTION AND PLACE A GREATER EMPHASIS ON DRUG ABUSE TREATMENT AND PREVENTION THE JUSTICE DEPARTMENT SAID THE FIFTY THOUSAND OFFICERS WOULD BE A BIG STEP TOWARD THE ADMINISTRATION'S GOAL OF PLACING ONE HUNDRED THOUSAND POLICE OFFICERS ON THE BEAT MANY OF THE OFFICERS WOULDN'T APPEAR ON THE STREETS IMMEDIATELY HOWEVER THE ADMINISTRATION FIGURES THAT IN FISCAL NINETEEN NINETY FIVE IT WILL BE ABLE TO SPEND ONLY THREE HUNDRED FORTY FIVE MILLION DOLLARS OF THE ONE POINT SEVEN BILLION DOLLARS AUTHORIZED FOR THE FIFTY THOUSAND OFFICERS ANOTHER UNKNOWN STATE AND LOCAL GOVERNMENTS WOULD HAVE TO PROVIDE TWO HUNDRED FIFTY DOLLARS FOR EVERY ONE THOUSAND DOLLARS THEY GET IN FEDERAL MONEY TO HIRE POLICE ABOUT FIVE HUNDRED EIGHTY NINE MILLION DOLLARS WOULD BE SPENT NEXT FISCAL YEAR ON PRISON CONSTRUCTION PRISON OPERATING FUNDS WOULD TOTAL TWO POINT THREE BILLION DOLLARS ATTORNEY GENERAL JANET RENO SAID THE BUDGET WOULD ACTIVATE ALMOST NINE THOUSAND SEVEN HUNDRED NEW PRISON BEDS SPENDING TO FIGHT DRUG ABUSE WOULD INCREASE NINE PERCENT FROM THE CURRENT FISCAL YEAR WHILE FUNDS FOR DRUG LAW ENFORCEMENT WOULD GROW THREE PERCENT THE OFFICE OF NATIONAL DRUG CONTROL POLICY OFTEN CALLED THE QUOTE DRUG CZAR'S QUOTE OFFICE SAID SPENDING ON PREVENTION AND TREATMENT WOULD JUMP EIGHTEEN PERCENT AS A RESULT FIFTY NINE PERCENT OF THE ANTI DRUG BUDGET WOULD BE AIMED AT REDUCING SUPPLY THROUGH ENFORCEMENT AND FORTY ONE PERCENT AT REDUCING DEMAND THROUGH PREVENTION AND TREATMENT THIS WOULD MARK THE FIRST TIME THE ENFORCEMENT ALLOCATION DROPPED BELOW SIXTY PERCENT OF THE TOTAL DRUG TREATMENT ADVOCATES HAVE LONG ARGUED THAT MUCH GREATER EMPHASIS SHOULD BE PLACED ON DEMAND REDUCTION THE ADMINISTRATION RECOMMENDS A NINE POINT THREE PERCENT INCREASE TO TWO POINT EIGHT ONE BILLION DOLLARS IN SPENDING FOR THE FEDERAL JUDICIARY MOST OF THE ADDITIONAL MONEY WOULD GO FOR ADDITIONAL COURTHOUSE SECURITY AND ADMINISTRATIVE STAFF THE EDUCATION DEPARTMENT WOULD RECEIVE A SEVEN PERCENT INCREASE IN DISCRETIONARY SPENDING AUTHORITY ONE OF THE BIGGEST BOOSTS OF ANY CABINET AGENCY BUT SOME PROGRAMS WOULD RECEIVE MONEY THAT WON'T BE SPENT FOR YEARS TO COME DISCRETIONARY EDUCATION OUTLAYS WOULD DECREASE TO TWENTY FOUR BILLION DOLLARS IN FISCAL NINETEEN NINETY FIVE FROM TWENTY FOUR POINT FIVE BILLION DOLLARS THIS FISCAL YEAR THE ADMINISTRATION PROPOSED A TWENTY ONE PERCENT INCREASE IN FUNDS FOR HEAD START ALLOWING THE PROGRAM TO OFFER ONE HUNDRED THOUSAND ADDITIONAL ALL DAY CLASSES IN NINETEEN NINETY FIVE AND TWO HUNDRED NINETY THOUSAND MORE BY NINETEEN NINETY NINE CURRENTLY MOST HEAD START PROGRAMS OFFER JUST HALF DAY CLASSES THE BUSH ADMINISTRATION HAD SOUGHT TO SERVE MORE CHILDREN BUT HADN'T FAVORED ALL DAY CLASSES ONE FOURTH OF ALL NEW BUDGET MONEY PROPOSED IN THE CLINTON BUDGET WOULD BE SET ASIDE FOR SUCH QUALITY IMPROVEMENTS AS UPGRADING SCHOOL BUILDINGS BUYING NEW BUSES AND RAISING STAFF SALARIES THE ADMINISTRATION ALSO PROPOSED A TEN PERCENT INCREASE IN ITS PROGRAM TO HELP DISADVANTAGED SCHOOL CHILDREN THE EDUCATION DEPARTMENT WANTS TO CONCENTRATE THE PROPOSED SEVEN POINT SIX BILLION DOLLARS IN SO CALLED TITLE ONE FUNDS ON THE POOREST SCHOOL DISTRICTS BUT ITS NEW SPENDING FORMULA ALREADY HAS RUN INTO TROUBLE ON CAPITOL HILL IT ALSO WANTS TO INCREASE MONEY SPENT ON TEACHER TRAINING BY TWENTY TWO PERCENT GOALS TWO THOUSAND THE ADMINISTRATION'S MAJOR EDUCATION REFORM PLAN WOULD GET SEVEN HUNDRED MILLION DOLLARS MUCH OF WHICH WOULD BE GRANTS TO SCHOOLS AND COMMUNITIES FOR EDUCATION REFORM THE PROGRAM TO CATCH ABUSE IN THE STUDENT LOAN PROGRAM MEANWHILE WOULD GET A SIXTY FIVE PERCENT INCREASE THE PELL GRANT PROGRAM WOULD BE EXPANDED TO REACH FOUR POINT ONE MILLION COLLEGE STUDENTS WITH THE MAXIMUM AWARD RAISED ONE HUNDRED DOLLARS TO TWO THOUSAND FOUR HUNDRED DOLLARS THE BUDGET WOULD CUT OFF FUNDS FOR THIRTY THREE EDUCATION PROGRAMS MOST OF WHICH WERE SMALL PROGRAMS RECOMMENDED FOR ELIMINATION BY THE NATIONAL PERFORMANCE REVIEW LAST YEAR HIGHWAYS REMAIN A BIG PRIORITY FOR PRESIDENT CLINTON EVEN IF HIS RHETORIC HAS TURNED TO OTHER AREAS FEDERAL HIGHWAY SPENDING WOULD INCREASE FOUR PERCENT TO EIGHTEEN POINT SIX BILLION DOLLARS FULLY FUNDING THE NINETEEN NINETY ONE HIGHWAY BILL FOR THE FIRST TIME SINCE ITS PASSAGE THE ADMINISTRATION IS PROPOSING A BIG INCREASE IN RESEARCH SPENDING FOR INTELLIGENT VEHICLE SYSTEMS WHICH INCLUDE NAVIGATIONAL AIDS IN CARS FOR MASS TRANSIT THE PICTURE IS LESS ROSY WHILE CAPITAL SPENDING FOR NEW BUSES TRAINS AND OTHER TRANSIT EQUIPMENT WOULD INCREASE AT A GREATER RATE THAN FOR HIGHWAYS OPERATING SUBSIDIES FOR LOCAL TRANSIT SYSTEMS WOULD DROP ONE HUNDRED TWENTY ONE MILLION DOLLARS OR SIXTEEN PERCENT IF YOU CAN'T OPERATE IT YOU CAN'T BUY IT SAID ROD DIRIDON CHAIRMAN OF THE AMERICAN PUBLIC TRANSIT ASSOCIATION ADMINISTRATION OFFICIALS SAY REPLACING OLD EQUIPMENT WILL ALLOW TRANSIT SYSTEMS TO REDUCE MAINTENANCE COSTS THE BUDGET WOULD PROVIDE A ONE BILLION DOLLAR SUBSIDY PROGRAM FOR DOMESTIC SHIPYARDS AND OWNERS OF FIFTY TWO AMERICAN FLAG SHIPS BUT THIS MARITIME REFORM PROGRAM WOULD BE FUNDED BY INCREASED TONNAGE FEES ON FOREIGN AND DOMESTIC SHIPS THE BUDGET ALSO WOULD INCREASE AMTRAK'S FUNDING FIFTEEN POINT THREE PERCENT BUT PROVIDE LESS MONEY FOR HIGH SPEED RAIL RESEARCH THAN ADVOCATES INCLUDING TRANSPORTATION SECRETARY FEDERICO PENA WANTED THE BUDGET WOULD ELIMINATE TWENTY ONE YEAR OLD SUBSIDIES TO SHORT HAUL RAILROADS AND SCALE BACK SUBSIDIES THAT SUPPORT AIRLINE SERVICE TO SMALL COMMUNITIES THE ADMINISTRATION ALSO WANTS TO SCRAP A THIRTY TWO MILLION DOLLAR BOATING SAFETY PROGRAM DENNIS HENDRIX WATCHED THE VALUE OF HIS COMPANY'S STOCK SLIDE TWENTY FIVE PERCENT LAST FALL NEVERTHELESS THE CHAIRMAN AND CHIEF EXECUTIVE OF PANHANDLE EASTERN CORPORATION HAS JUST AGREED TO CONTINUE BEING PAID ENTIRELY IN THE NATURAL GAS COMPANY'S STOCK MR. HENDRIX IS A LONELY BULL IN THE STALLED U. S. NATURAL GAS MARKET DESPITE SLUGGISH DEMAND WHICH GREW JUST THREE PERCENT LAST YEAR HE SAYS HE'LL BOOST CAPITAL SPENDING BY FORTY TWO PERCENT THIS YEAR TO EXPAND THE COMPANY'S TWENTY SEVEN THOUSAND MILE PIPELINE ALREADY THE COUNTRY'S SECOND LONGEST AFTER ENRON CORPORATION'S AND HIS AMBITIOUS EXPANSION PLANS FOCUS LARGELY ON THE NORTHEAST WHERE DISTRIBUTORS IN THE RIVAL FUEL OIL BUSINESS HAVE LONG DOMINATED THE HOME HEATING MARKET MR. HENDRIX DEMANDS THE SAME OPTIMISM FROM HIS TOP LIEUTENANTS WHEN HE PROMOTED PAUL ANDERSON TO PRESIDENT FROM EXECUTIVE VICE PRESIDENT LAST FALL HE SAYS HE OFFERED HIS NUMBER TWO EXECUTIVE QUOTE NO RAISE JUST MORE STOCK OPTIONS QUOTE MR. ANDERSON ALREADY RECEIVED A SIGNIFICANT SALARY BUT MR. HENDRIX IS PAID TWENTY FIVE THOUSAND COMMON SHARES PER QUARTER NO SEVERANCE NO GOLDEN PARACHUTE AND NO RETIREMENT PLAN NO MATTER BECAUSE THE STOCK DESPITE ITS RECENT SLIDE HAS MORE THAN DOUBLED SINCE NOVEMBER NINETEEN NINETY WHEN MR. HENDRIX TOOK OVER SAYS KEVIN MURPHY AN ASSOCIATE PROFESSOR AT THE HARVARD BUSINESS SCHOOL WHO STUDIES EXECUTIVE COMPENSATION I HAVE ABSOLUTELY NO PROBLEMS WITH HIM MAKING A MINT WHEN THE STOCK PERFORMS SO WELL MR. HENDRIX CURRENTLY OWNS FOUR HUNDRED THIRTY THOUSAND SHARES WITH AN INDICATED VALUE OF TEN POINT EIGHT MILLION DOLLARS AT THE RECENT TRADING LEVEL OF ABOUT TWENTY FIVE DOLLARS HIS STAKE IS LESS THAN ONE PERCENT OF THE COMPANY'S ONE HUNDRED TWENTY POINT TWO MILLION OUTSTANDING SHARES IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE STOCK CLOSED AT TWENTY FOUR POINT THREE SEVEN FIVE DOLLARS DOWN THIRTY SEVEN POINT FIVE CENTS SAYS THE FIFTY THREE YEAR OLD MR. HENDRIX IT KEEPS ME VERY FOCUSED ON THE MARKET VALUE OF THE COMPANY THIS IS THE SEASON WHEN PLENTY OF ATTENTION IS ALSO FOCUSED ON THE PERFORMANCE OF THE PIPELINES THEMSELVES IN THESE RECENT DAYS OF LINGERING SUBZERO COLD IN SOME OF HIS NORTHEASTERN MARKETS MR. HENDRIX IS ECSTATIC OVER THE SUCCESSFUL OPERATION OF THE SYSTEM SOMETHING THAT HIS INDUSTRY HAS BEEN WAITING TO SEE PROVEN THE PIPELINE SYSTEM WORKS THERE ARE NO SHORTAGES WE CAN GET THE GAS TO THE PEOPLE HE SAYS DOUBTS ABOUT THE NATION'S BURGEONING GAS PIPELINE SYSTEM HAD REMAINED AS IT EXPANDED OVER THE LAST DECADE WITHOUT BEING TESTED BY A LENGTHY AND WIDESPREAD COLD SPELL SUCH AS THE ONE THAT PARTS OF THE NATION HAVE ENDURED DURING THE LAST MONTH NOT THAT HE'S A BLIND OPTIMIST MR. HENDRIX IS SUBDUED ABOUT PANHANDLE'S PROSPECTS FOR MAINTAINING THE FAST PACE OF THE TURNAROUND HE STARTED IN NINETEEN NINETY ONE WHEN THE COMPANY POSTED NET INCOME OF EIGHTY FIVE POINT ONE MILLION DOLLARS OR EIGHTY SIX CENTS A SHARE COMPARED WITH A NET LOSS IN NINETEEN NINETY OF TWO HUNDRED EIGHTEEN POINT TWO MILLION DOLLARS OR TWO DOLLARS AND FORTY SIX CENTS A SHARE PANHANDLE'S PROFIT MORE THAN DOUBLED IN NINETEEN NINETY TWO TO ONE HUNDRED EIGHTY SEVEN POINT ONE MILLION DOLLARS AFTER NONRECURRING NET GAINS OF FIFTY SEVEN POINT SEVEN MILLION DOLLARS LAST WEEK THE COMPANY REPORTED NINETEEN NINETY THREE NET INCOME OF ONE HUNDRED FORTY EIGHT POINT ONE MILLION DOLLARS OR ONE DOLLAR AND TWENTY NINE CENTS A SHARE AFTER A CHARGE OF SIXTY POINT TWO MILLION DOLLARS THAT CHARGE WAS PARTIALLY OFFSET BY A GAIN OF TWENTY EIGHT POINT SEVEN MILLION DOLLARS FROM A PROPOSED SETTLEMENT OF CERTAIN CUSTOMERS' COMPLAINTS OVER GAS SUPPLY CONTRACTS AMONG OTHER THINGS WE CAN'T PRODUCE THE PERCENTAGE INCREASES IN NET INCOME THAT WE HAVE HAD IN RECENT YEARS HE SAYS HIS ANSWER TO THE EXPECTED SLOWDOWN IN EARNINGS GROWTH IS TO SHARPLY RAISE SPENDING ON PIPELINE EXPANSION QUOTE WE FEEL GOOD ABOUT THE OUTLOOK ABOUT THE DEMAND FOR ELECTRICITY AND THE OPPORTUNITY FOR GAS SUPPLYING THE FUEL FOR THAT QUOTE HE SAYS THUS HE'S ZEROING IN ON THE NORTHEAST MARKET WHERE FUEL OIL HAS A SIXTY PERCENT SHARE OF THE HOME HEATING BUSINESS THAT'S LIKELY TO INCREASE HE SAYS HE REASONS THAT BY NINETEEN NINETY FIVE FEDERAL CLEAN AIR RULES MAY FORCE CONVERSION TO NATURAL GAS OF SOME OIL FIRED AS WELL AS SOME COAL FUELED ELECTRIC PLANTS ALTHOUGH MR. HENDRIX YEARNS FOR A GROWING GAS MARKET HE DOESN'T BEAT THE INDUSTRY'S WELL WORN DRUM FOR HIGHER PRICES AT SOME POINT WE MAY BE ADVERSELY AFFECTED BY THE HIGHER PRICE OF GAS RELATIVE TO OTHER COMPETING FUELS HE SAYS PANHANDLE AND THE OTHER GAS PIPELINE COMPANIES NUDGED BY THE FEDERAL ENERGY REGULATORY COMMISSION HAVE GRADUALLY EXTRICATED THEMSELVES FROM THE RISKY BUSINESS OF BUYING AND THEN SELLING THE GAS THEY CARRY ON THEIR PIPELINES ALL OF THE GAS CURRENTLY BEING MOVED THROUGH PANHANDLE'S PIPELINES IS EITHER OWNED BY PRODUCERS OR SUCH CUSTOMERS AS UTILITIES FACTORIES OR OTHER COMMERCIAL USERS LESS THAN A DECADE AGO PANHANDLE ACTED AS A BUYER AND SELLER FOR NEARLY ALL THE GAS IT CARRIED IN OTHER WORDS PANHANDLE IS NOW SELLING RESERVED SPACE ON ITS PIPELINE WHICH IT CALLS CAPACITY TO UTILITIES AND OTHER CUSTOMERS THE WORLD IS AWASH IN GAS BUT NOT ALL OF IT IS IN THE RIGHT PLACE SAYS MR. HENDRIX THUS MR. HENDRIX SAYS HE PLANS TO RAISE PANHANDLE'S CAPITAL SPENDING IN NINETEEN NINETY FOUR BY FORTY TWO PERCENT TO FOUR HUNDRED TWENTY FIVE MILLION DOLLARS MUCH OF THAT FOR EXPANSION IN THE COMPETITIVE NORTHEAST HE'S DOING SO EVEN THOUGH HE HAS PREVIOUSLY SAID THAT ONE OF HIS GOALS IS TO REDUCE PANHANDLE'S DEBT AS A PERCENTAGE OF CAPITAL BELOW FORTY PERCENT IT IS CURRENTLY FORTY SIX PERCENT DESPITE THE DEBT LOAD MR. HENDRIX HAS MADE A BELIEVER OUT OF WALL STREET SINCE HE WAS NAMED PANHANDLE'S TOP EXECUTIVE IN NOVEMBER NINETEEN NINETY MR. HENDRIX CLEANED UP PANHANDLE'S BOOKS BY SETTLING FIVE HUNDRED MILLION DOLLARS IN DISPUTED CLAIMS BY SEVERAL UTILITIES PANHANDLE AGREED TO PAY HALF SEPARATELY THE COMPANY WROTE OFF TWO HUNDRED MILLION DOLLARS IN UNPROFITABLE ASSETS NOW HE'S TAKING A STAB AT DIVERSIFYING THE COMPANY BY MARKETING A SORT OF NATURAL GAS AUTOMATED TELLER SYSTEM TO INDUSTRIAL CUSTOMERS UNDER THE BRAND NAME LINK THE SYSTEM'S SOFTWARE ALLOWS THEM TO QUICKLY PLACE THEIR ORDERS ALTER THEM AND PLAN ROUTES FOR GAS THROUGH THE INTERCONNECTING PIPELINES OF VARIOUS COMPANIES ONE EARLY CUSTOMER BRITISH GAS P. L. C. IN LONDON THE LARGEST DIVERSIFIED GAS COMPANY IN THE WORLD AND A POSSIBLE MODEL FOR FUTURE VERTICAL INTEGRATION EFFORTS AS ENVISIONED BY MR. HENDRIX WE NEED TO LOOK FOR NEW REVENUE SOURCES HE SAYS AND WHAT OF MR. HENDRIX'S HOLDINGS HE SAYS HE HASN'T SOLD ANY OF THE PANHANDLE SHARES HE HAS BEEN PAID SO FAR ALTHOUGH HE HAS PLACED SOME OF THE STOCK IN GRANDCHILDRENS' TRUST ACCOUNTS HE SAYS HE'S LIVING MAINLY ON PANHANDLE'S QUARTERLY DIVIDEND OF TWENTY CENTS A SHARE SMALL WONDER HE'S CONSIDERING ASKING THE BOARD FOR AN INCREASE THAT ANALYSTS FORECAST AT FIVE PERCENT FOR LATER THIS YEAR UNITED DOMINION INDUSTRIES LIMITED SAID ITS LITWIN S. A. SUBSIDIARY IN PARIS SIGNED A SEVENTY THREE MILLION DOLLAR CONTRACT TO UPGRADE A REFINERY IN TURKEY THE CONTRACT IS WITH THE TURKISH PETROLEUM REFINERIES CORPORATION WHICH IS OWNED BY THE GOVERNMENT OF TURKEY TO UPGRADE ITS IZMIT REFINERY FIFTY SIX MILES SOUTHEAST OF ISTANBUL WORK ON THE REFINERY IS EXPECTED TO TAKE ABOUT THIRTY MONTHS TO COMPLETE UNITED DOMINION IS AN ENGINEERING CONCERN THE DOW JONES INDUSTRIAL AVERAGE SNAPPED BACK AFTER FRIDAY'S CHILLING SELL OFF THE INDEX OF THIRTY BLUE CHIP STOCKS RALLIED THIRTY FOUR POINT NINE OH POINTS TO THREE THOUSAND NINE HUNDRED SIX POINT THREE TWO RECOVERING MORE THAN A THIRD OF THE LOSSES IT SUFFERED AFTER THE FEDERAL RESERVE RAISED SHORT TERM INTEREST RATES FRIDAY OTHER STOCK MARKET BAROMETERS STAGED PARTIAL RECOVERIES HELPED IN PART BY A STABILIZING BOND MARKET STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX CLIMBED ONE POINT NINE FIVE POINTS TO FOUR HUNDRED SEVENTY ONE POINT SEVEN SIX AND THE NASDAQ COMPOSITE INDEX EDGED UP ONE POINT NINE TWO TO SEVEN HUNDRED SEVENTY NINE POINT TWO OH RECOUPING JUST A FRACTION OF THE LOSS INCURRED FRIDAY BUT THE NUMBER OF ADVANCING STOCKS CONTINUED TO TRAIL DECLINING ISSUES ONE THOUSAND FORTY FOUR TO ONE THOUSAND ONE HUNDRED SEVENTY EIGHT CAUSING SOME NERVOUSNESS AMONG TECHNICAL ANALYSTS TRADING WAS HEAVY WITH VOLUME ON THE BIG BOARD EASING TO THREE HUNDRED FORTY SIX MILLION SEVEN HUNDRED SEVENTY NINE THOUSAND COMMON SHARES FROM FRIDAY'S HECTIC THREE HUNDRED SEVENTY SEVEN MILLION SEVEN HUNDRED SEVENTY THREE THOUSAND SHARES THOUGH SOME STOCK STRATEGISTS WERE PREDICTING FURTHER DECLINES YESTERDAY STOCK PRICES STABILIZED ONCE IT BECAME APPARENT THAT INDIVIDUAL INVESTORS WEREN'T STAMPEDING OUT OF MUTUAL FUNDS QUOTE THE BIG QUESTION COMING INTO YESTERDAY WAS WHETHER THE INDIVIDUAL INVESTOR WOULD BUY ON WEAKNESS QUOTE SAID WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS BUT JUDGING BY THE VOLUME AND THE PRICE ACTION THAT SHOULDN'T HAVE BEEN A WORRY INDEED FIDELITY INVESTMENTS THE U. S.'S LARGEST MUTUAL FUND COMPANY REPORTED THAT ABOUT NINETY MILLION DOLLARS FLOWED INTO THE FIRM'S DOMESTIC STOCK FUNDS YESTERDAY THOUGH FOR A BRIEF MOMENT IT DIDN'T LOOK LIKE YESTERDAY WAS SHAPING UP TO BE A PLEASANT DAY FOR THE FIRST TWO HOURS OF THE DAY IT WAS A LITTLE SCARY SAID NEAL LITVACK EXECUTIVE VICE PRESIDENT AT BOSTON BASED FIDELITY WE SAW MORE MONEY GO OUT OF THE FUNDS THAN INTO THE FUNDS BUT MR. LITVACK SAID THE SITUATION STARTED TO TURN AROUND AT ABOUT TEN THIRTY A. M. E. S. T. ALL OF A SUDDEN INVESTORS WHO HAD PUT IN EARLY ORDERS TO REDEEM SHARES FROM FIDELITY BEGAN CALLING UP TO CANCEL THEIR REQUESTS OTHERS BEGAN PHONING IN ORDERS TO BUY MORE SHARES DESPITE YESTERDAY'S STRENGTH MR. DODGE OF DEAN WITTER ISN'T READY TO GIVE THE STOCK MARKET A CLEAN BILL OF HEALTH HE THINKS STOCK PRICES COULD FALL AN ADDITIONAL TWO PERCENT TO THREE PERCENT IN THE COMING WEEKS AS BOND PRICES ERODE UNDER THE WEIGHT OF THE TREASURY'S REFUNDING AND A SET OF INFLATION NUMBERS THAT MANY ECONOMISTS SAY WILL LIKELY BE UNFAVORABLE ECONOMICALLY SENSITIVE STOCKS WERE BEHIND THE INDUSTRIAL AVERAGE'S COMEBACK ALUMINUM COMPANY OF AMERICA JUMPED TWO TO SEVENTY EIGHT AND ONE EIGHTH GENERAL MOTORS ONE AND THREE EIGHTHS TO SIXTY THREE CATERPILLAR TWO AND THREE QUARTERS TO ONE HUNDRED FIVE AND ONE QUARTER AND GENERAL ELECTRIC ONE AND THREE QUARTERS TO ONE HUNDRED EIGHT AND ONE QUARTER MR. DODGE SAID IT WAS ONLY LOGICAL THAT CYCLICAL STOCKS PERFORMED WELL YESTERDAY BECAUSE THE FED'S MOVE TO RATCHET UP INTEREST RATES CAME LARGELY IN RESPONSE TO THE STRENGTHENING ECONOMY MEANWHILE RATE SENSITIVE STOCKS CONTINUED TO LAG BEHIND BANKING STOCKS ENDED MIXED AFTER EARLY SIGNS OF WEAKNESS THE DOW JONES UTILITY AVERAGE EASED ZERO POINT EIGHT SIX POINT TO TWO HUNDRED NINETEEN POINT THREE FIVE AND A NUMBER OF INSURANCE STOCKS TOOK IT ON THE CHIN EQUITABLE LOST ONE QUARTER TO TWENTY SIX AND ONE HALF AETNA LIFE AND CASUALTY ONE QUARTER TO SIXTY AND SEVEN EIGHTHS AND SAINT PAUL TWO AND THREE EIGHTHS TO EIGHTY THREE AND ONE QUARTER INTERNATIONAL BUSINESS MACHINES ADDED TWO AND ONE QUARTER TO FIFTY FOUR AND ONE QUARTER AFTER TUMBLING THREE AND ONE HALF IN FRIDAY'S MARKET SELL OFF BARRON'S MAGAZINE SAID BIG BLUE WAS NAMED ONE OF THE FAVORITES OF INVESTMENT MANAGERS RESPONDING TO ITS QUARTERLY BIG MONEY POLL AMONG OTHERS HOME DEPOT CLIMBED ONE AND FIVE EIGHTHS TO THIRTY NINE AND INTEL ADDED ONE QUARTER TO SIXTY TWO ON THE NASDAQ STOCK MARKET MEANWHILE MANY OTHER TECHNOLOGY ISSUES WERE STRONG MOTOROLA ADVANCED ONE TO NINETY SIX AND ONE QUARTER COMPAQ COMPUTER RALLIED TWO AND FIVE EIGHTHS TO EIGHTY SEVEN AND SEVEN EIGHTHS AND TEXAS INSTRUMENTS GAINED ONE AND THREE QUARTERS TO SEVENTY TWO ON NASDAQ APPLE COMPUTER ADDED THREE AND ONE EIGHTH TO THIRTY SIX AND ONE HALF AND THREE COM ROSE ONE AND THREE QUARTERS TO FIFTY EIGHT AND ONE EIGHTH ASARCO JUMPED ONE AND ONE HALF TO TWENTY FIVE PHELPS DODGE GAINED ONE AND THREE EIGHTHS TO FIFTY SIX AND ONE QUARTER AND MAGMA COPPER INCREASED FIVE EIGHTHS TO FIFTEEN AND SEVEN EIGHTHS AFTER MERRILL LYNCH RAISED RATINGS ON SHARES OF THE COPPER PRODUCERS ASARCO'S INTERMEDIATE TERM RATING WAS LIFTED TO ABOVE AVERAGE FROM NEUTRAL THE OTHER TWO WERE RAISED TO QUOTE BUY QUOTE FROM QUOTE ABOVE AVERAGE QUOTE HOWEVER PRECIOUS METALS PRODUCERS WERE WEAK AS GOLD FOR APRIL DELIVERY TUMBLED IN NEW YORK AMERICAN BARRICK WAS OFF ONE TO TWENTY FIVE AND THREE QUARTERS HOMESTAKE MINING DROPPED ONE AND ONE EIGHTH TO TWENTY ONE NEWMOUNT MINING DROPPED TWO AND FIVE EIGHTHS TO FIFTY TWO AND ON THE AMEX ECHO BAY MINES DECLINED THREE EIGHTHS TO TWELVE AND THREE QUARTERS SCIMED LIFE SYSTEMS SKIDDED ONE AND THREE QUARTERS TO FORTY ON NASDAQ HAMBRECHT AND QUIST ANALYST KURT KRUGER ATTRIBUTED THE WEAKNESS TO CONCERN ABOUT A POSSIBLE DELAY IN THE MAPLE GROVE MINNESOTA MEDICAL DEVICE MAKER'S PATENT DISPUTE WITH PFIZER MR. KRUGER SAID A FEDERAL COURT DECISION ON THE MATTER MAY NOT COME AS SOON AS EXPECTED THE COMPANY SAID IT WASN'T AWARE OF ANY REASON FOR THE WEAKNESS CALLAWAY GOLF RALLIED FOUR AND ONE QUARTER TO SIXTY EIGHT AND THREE QUARTERS A MOVE THAT A SPOKEWOMAN FOR THE CARLSBAD CALIFORNIA COMPANY WAS AT A LOSS TO EXPLAIN ONE POSITIVE FOR THE COMPANY THOUGH WAS THAT JOHNNY MILLER A COMPANY SPOKESMAN WON A TOURNAMENT SUNDAY USING CALLAWAY CLUBS DAVE PETTIT CONTRIBUTED TO THIS ARTICLE ROGERS COMMUNICATIONS INCORPORATED AND MACLEAN HUNTER LIMITED CONTINUED TO BICKER OVER THE CONDITIONS UNDER WHICH ROGERS WILL PROCEED WITH ITS PROPOSED MULTIBILLION DOLLAR BID TO ACQUIRE MACLEAN HUNTER A BROADCASTING PUBLISHING AND PRINTING CONCERN BASED HERE ROGERS A TORONTO TELECOMMUNICATIONS CONCERN SAID IT ASKED THE ONTARIO SECURITIES COMMISSION TO RULE THAT IT DOESN'T HAVE TO OFFER TO BUY A BLOCK OF THIRTY SIX POINT THREE MILLION MACLEAN HUNTER SHARES CONTROLLED BY THE TARGET COMPANY MACLEAN HUNTER'S SHAREHOLDERS RIGHTS PLAN REQUIRES ANY BIDDER TO OFFER TO ACQUIRE ALL SHARES OF THE COMPANY WHICH WOULD INCLUDE THE THIRTY SIX POINT THREE MILLION SHARE BLOCK ROGERS SAID THAT THE ACQUISITION OF THIS BLOCK WOULD FORCE THE COMPANY TO SHELL OUT MILLIONS OF DOLLARS IN CAPITAL GAINS TAX MAKING THE TRANSACTION MUCH LESS ATTRACTIVE BUT RONALD OSBORNE PRESIDENT AND CHIEF EXECUTIVE OF MACLEAN HUNTER SAID THAT ROGERS APPEARS TO BE SEEKING A WAY TO QUOTE BYPASS QUOTE MACLEAN HUNTER'S SHAREHOLDERS RIGHTS PLAN WITH ITS REQUIREMENT TO LEAVE A BID OPEN FOR ONE HUNDRED TWENTY DAYS IN ORDER TO ALLOW THE TARGET COMPANY'S BOARD TO SEEK ALTERNATIVE OFFERS MACLEAN HUNTER SAID IT WOULDN'T TENDER THE BLOCK OF SHARES TO A SO CALLED PERMITTED BID BY ROGERS OR ANY OTHER BIDDER OR TO A BID APPROVED BY MACLEAN HUNTER'S BOARD A PERMITTED BID IS ONE THAT MEETS THE CONDITIONS OF A SHAREHOLDERS RIGHTS PLAN WHICH INCLUDE THE ONE HUNDRED TWENTY DAY WAITING PERIOD AND THE CALLING OF A SHAREHOLDERS' MEETING TO APPROVE THE TRANSACTION BUT GRAHAM SAVAGE CHIEF FINANCIAL OFFICER OF ROGERS SAID THE COMPANY DOESN'T WANT MACLEAN HUNTER TO IMPOSE RESTRICTIONS ON THE TYPE OF OFFER ROGERS CAN MAKE THEY'RE FORCING US INTO A NARROW SET OF RULES MR. SAVAGE SAID HE ADDED THAT ROGERS ISN'T COMFORTABLE WITH THE TIME CONSUMING PROCEDURES PROVIDED FOR IN THE RIGHTS PLAN HE DECLINED TO SAY WHETHER ROGERS WILL SEEK TO OVERTURN THE PLAN WHILE ANYTHING OTHER THAN A PERMITTED BID COULD RESULT IN THE ISSUANCE UNDER THE SHAREHOLDERS RIGHTS PLAN OF MILLIONS OF ADDITIONAL MACLEAN HUNTER SHARES AT A FIFTY PERCENT DISCOUNT TO MARKET VALUE FEW ANALYSTS BELIEVE THAT THIS WILL HAPPEN IT'S DIFFICULT NOT TO SEE ALL THIS AS A DELAYING TACTIC BY ROGERS SAID ANDREW MCCREATH AN ANALYST AT GORDON CAPITAL CORPORATION IN TORONTO THIS IS A LEGITIMATE ISSUE AND THEY MAY WELL BE LOOKING FOR AN OSC VIEW ON IT BUT ONE CAN ONLY SUSPECT THAT THEY'RE TRYING TO BUY A LITTLE TIME HERE ROGERS HAS YET TO MAKE A FORMAL OFFER FOR THE MACLEAN HUNTER SHARES DESPITE INDICATING ITS PLAN TO DO SO LAST WEEK MR. OSBORNE SAID HE HAS PROPOSED TO ROGERS EXECUTIVES THAT THEY SUBMIT AN OFFER TO SHAREHOLDERS FOR CONSIDERATION WITH WHATEVER CONDITIONS ROGERS FEELS ARE NECESSARY INCLUDING A FAVORABLE JUDGEMENT FROM THE OSC WE CAN'T REACT TO A BID WE HAVEN'T SEEN YET HE SAID QUOTE THE MARKET'S BEEN WAITING FOR THIS FOR NEARLY A WEEK QUOTE MR. OSBORNE DECLINED TO SAY HOW ROGERS EXECUTIVES RESPONDED TO THE REQUEST SOME SPECULATION CENTERS ON WHETHER ROGERS HAS BEEN ABLE TO ARRANGE FINANCING FOR THE FULL CASH PORTION OF WHAT IS EXPECTED TO BE A CASH AND STOCK OFFER ROGERS TOLD ANALYSTS LAST WEEK IT HAS A BANK BRIDGE LOAN OF TWO BILLION CANADIAN DOLLARS ONE POINT FOUR EIGHT BILLION U. S. DOLLARS IN PLACE TO FUND THE ACQUISITION OF MACLEAN HUNTER THE TELECOMMUNICATIONS CONCERN ALSO HAS ABOUT SEVEN HUNDRED MILLION CANADIAN DOLLARS IN CASH ON ITS BOOKS MUCH OF WHICH HAS BEEN RAISED OVER THE PAST TWELVE MONTHS THROUGH DEBT ISSUES THE ACQUISITION OF MACLEAN HUNTER COULD COST ROGERS TWO POINT EIGHT NINE BILLION CANADIAN DOLLARS BASED ON THE CURRENT MARKET VALUE OF THE FORMER'S SHARES IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY THE VALUE OF MACLEAN HUNTER'S SHARES FELL TO SIXTEEN CANADIAN DOLLARS AND SEVENTY FIVE CENTS A SHARE OFF SEVENTY FIVE CANADIAN CENTS ON THE NEWS THAT ROGERS IS HOLDING OFF FROM MAKING AN OFFER SPECULATION HAD DRIVEN MACLEAN HUNTER'S STOCK PRICE TO A FIFTY TWO WEEK HIGH OF EIGHTEEN CANADIAN DOLLARS AND SEVENTY FIVE CENTS A SHARE IN INTRADAY TRADING FRIDAY SOME ANALYSTS SAID ROGERS COULD BE STALLING TO PUSH OUT MARKET ARBITRAGERS WHO HAVE BEEN HEAVY PLAYERS IN MACLEAN HUNTER STOCK THE STOCK HAD BEEN TRADING AT AROUND THIRTEEN CANADIAN DOLLARS AND SEVENTY FIVE CENTS PRIOR TO EMERGENCE OF ROGERS AS A POTENTIAL BIDDER BUT GORDON CAPITAL'S MR. MCCREATH SAID HE BELIEVES THAT SINCE MACLEAN HUNTER HAS BEEN PUT IN PLAY AN ACQUIRER LIKELY WILL END UP PAYING EIGHTEEN CANADIAN DOLLARS AND FIFTY CENTS TO TWENTY CANADIAN DOLLARS A SHARE MACLEAN HUNTER ITSELF HAS ACKNOWLEDGED IT IS SEEKING ALTERNATIVES TO THE UNSOLICITED EXPRESSIONS OF INTEREST BY ROGERS IT SAID ALTERNATIVES BEING STUDIED INCLUDE A RECAPITALIZATION OF MACLEAN HUNTER THE SPINOFF OR SALE OF ITS CANADIAN CABLE ASSETS OR SOME ALLIANCE WITH A THIRD PARTY THE COMPANY ALSO SAID IT IS IN ACTIVE DISCUSSIONS WITH A NUMBER OF PARTIES INTERESTED IN ITS U. S. CABLE TELEVISION ASSETS LAST FALL IT RETAINED GOLDMAN SACHS AND COMPANY TO ADVISE IT ON THE FUTURE OF THOSE ASSETS AND MR. OSBORNE SAID DETAILED DISCUSSIONS WITH INTERESTED PARTIES BEGAN ABOUT THREE WEEKS AGO ROGERS IN A LETTER TO MR. OSBORNE ASKED MACLEAN HUNTER TO REFRAIN FROM ENTERING ANY AGREEMENT OR UNDERSTANDING RELATING TO ITS BUSINESSES OR ASSETS AT THIS TIME IT ALSO IS SEEKING EQUAL ACCESS TO INFORMATION PROVIDED TO THIRD PARTIES ABOUT THE U. S. AND CANADIAN CABLE ASSETS MR. OSBORNE SAID MACLEAN HUNTER WILL PROVIDE INFORMATION TO ROGERS BUT WON'T NEGOTIATE EXCLUSIVELY WITH THE TELECOMMUNICATIONS CONCERN HE DECLINED TO GIVE HIS RESPONSE TO THE REQUEST TO LEAVE ASSETS UNTOUCHED G. T. E. CORPORATION SAID ITS G. T. E. AIRFONE UNIT RECEIVED A CONTRACT FROM TRANS WORLD AIRLINES TO PROVIDE ADVANCED AIRPLANE TELEPHONE SERVICE THE GENSTAR DIGITAL SYSTEM WILL ALLOW PASSENGERS TO RECEIVE CALLS PLACED FROM THE GROUND IN ADDITION TO MAKING OUTBOUND CALLS THE NEW SYSTEM REPLACES AN ANALOG SERVICE AVAILABLE ON SOME T. W. A. AIRCRAFT THE CONTRACT COVERS ABOUT TWO HUNDRED CURRENT AND FUTURE AIRCRAFT IN THE T. W. A. FLEET DESIGN A BETTER MOUSETRAP PREFERABLY A COMPUTERIZED ONE WITH BROAD BAND COMMUNICATIONS AND THERE MAY BE SOME MONEY IN THE CLINTON BUDGET TO HELP YOU BUILD IT THE CLINTON ADMINISTRATION PLANS BIG INCREASES IN A NUMBER OF OBSCURE COMMERCIAL RESEARCH PROGRAMS NIST ARPA TRP HPCC THAT ONLY VICE PRESIDENT AL GORE COULD LOVE AND PROBABLY FEW OTHERS UNDERSTAND THIS IS A BIG CHANGE FROM TWELVE YEARS OF REPUBLICAN RULE WHEN THE SCIENCE AND TECHNOLOGY BUDGET WAS DOMINATED BY BIG SCIENCE PROJECTS THAT PROMISED TO LAND ASTRONAUTS ON MARS AND PULVERIZE ATOMS ON EARTH CLINTONITES WANT TO HARNESS SCIENCE AND TECHNOLOGY QUOTE TOWARD THE END OF ECONOMIC RECOVERY QUOTE SAYS JOHN GIBBONS THE PRESIDENT'S SCIENCE ADVISER TO THAT END THE BIGGEST WINNER IS A LITTLE KNOWN AGENCY THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY OR NIST LOCATED IN ONE OF WASHINGTON'S SLEEPIEST BUREAUCRACIES THE COMMERCE DEPARTMENT NIST NOW IS TO BE THE NERVE CENTER OF THE NATION'S INDUSTRIAL POLICY AND WAS REWARDED WITH A SEVENTY EIGHT PERCENT BUDGET INCREASE TO EIGHT HUNDRED SEVENTY FOUR MILLION DOLLARS IN THE YEAR BEGINNING OCTOBER FIRST NINETEEN NINETY FOUR COMMERCE SECRETARY RON BROWN SAYS HE WANTS TO NEARLY DOUBLE THAT BUDGET TWO YEARS LATER WHAT DOES NIST DO IT USED TO BE KNOWN AS THE NATIONAL BUREAU OF STANDARDS AND IT STILL FIGURES OUT THE EXACT MEASUREMENT OF A POUND BUT IT ALSO FUNDS A VARIETY OF COMMERCIAL R. AND D. VENTURES IN ELECTRONICS COMPUTERS AND OTHER EXOTICA UNDER WHAT'S CALLED THE ADVANCED TECHNOLOGY PROGRAM THE ATP IS SCHEDULED TO RECEIVE FOUR HUNDRED FIFTY MILLION DOLLARS IN FISCAL YEAR NINETEEN NINETY FIVE MORE THAN TWICE WHAT IT CURRENTLY GETS THE ATP IS A FAVORITE OF TECHNOLOGY WATCHERS BECAUSE IT HAS SO FAR AWARDED PROJECTS STRICTLY BASED ON TECHNICAL AND BUSINESS MERIT AS DECIDED BY VARIOUS PANELS OF EXPERTS BUT WITH ITS BUDGET BALLOONING WITHOUT HIRING ANY MORE MANAGERS THE PROGRAM MAY START MAKING BIGGER AWARDS THE KIND THAT DRAW THE ATTENTION OF LAWMAKERS TRYING TO LARD UP THE BUDGET WITH PORK HISTORICALLY PORK HAS POISONED A NUMBER OF BIG COMMERCIAL R. AND D. PROJECTS RANGING FROM THE SUPERSONIC TRANSPORT TO THE BREEDER REACTOR LAWMAKERS AND THE COMPANIES THEY REPRESENT HAVE KEPT THE PROJECTS ALIVE WELL AFTER IT WAS APPARENT THAT THE PROGRAMS WERE LOSERS AND WASTING HUNDREDS OF MILLIONS OF DOLLARS THE CLINTON ADMINISTRATION IS TOO NEW TO HAVE ADDED TO THAT SORRY LEGACY BUT TECHNOLOGY WATCHERS WORRY THAT THE ADMINISTRATION'S SUPERCAR PROJECT WHICH AIMS TO TRIPLE THE GASOLINE MILEAGE OF CURRENT CARS WITHIN A DECADE MAY TURN OUT TO BE ANOTHER LOSER THE ADMINISTRATION IS TARGETING AT LEAST ONE HUNDRED SEVENTY FIVE MILLION DOLLARS FOR THE PROJECT IN FISCAL NINETEEN NINETY FIVE WHICH IS SUPPOSED TO BE LARGELY MATCHED BY THE BIG THREE AUTO MAKERS BUT THERE IS NO EVIDENCE THAT CONSUMERS HAVE MUCH INTEREST IN BETTER GAS MILEAGE OR THAT THE BIG THREE HAVE MUCH INTEREST IN DEVELOPING TECHNOLOGIES THAT WOULD MAKE THEIR CARS OBSOLETE WHEN FIRMS IN OLIGOPOLISTIC INDUSTRY GET TOGETHER TO DO RESEARCH RATHER THAN INCREASING INFORMATION THEY MIGHT COLLUDE TO DELAY IT SAYS LINDA COHEN AN ECONOMIST AT THE UNIVERSITY OF SOUTHERN CALIFORNIA THE CLINTON PLAN ALSO TARGETS A NUMBER OF OTHER COMMERCIAL R. AND D. PROJECTS FOR BIG INCREASES THE MUCH BALLYHOOED INFORMATION SUPERHIGHWAY A FANCY NAME FOR ADVANCED COMPUTING AND COMMUNICATIONS PROJECTS IS SLATED FOR A THIRTY TWO PERCENT INCREASE TO ONE POINT THREE BILLION DOLLARS THE ADVANCED RESEARCH PROJECT AGENCY THAT'S ARPA THE PENTAGON RESEARCH AGENCY IS SUPPOSED TO GET A THIRTEEN PERCENT INCREASE TO SIX HUNDRED TWENTY FIVE MILLION DOLLARS FOR ITS PROJECTS TO CONVERT DEFENSE PROGRAMS TO CIVILIAN USE AND THE BUDGET FOR THE HUMAN GENOME PROJECT WHICH IS TRYING TO DECODE THE INFORMATION IN HUMAN GENES WOULD BE BOOSTED TWENTY TWO PERCENT TO TWO HUNDRED FORTY ONE MILLION DOLLARS THE GENE WORK IS OFFICIALLY CATEGORIZED AS BASIC RESEARCH BUT THE EFFORT UNDERLIES A NUMBER OF NEW GENETIC TESTS AND THERAPIES THE ENVIRONMENTAL PROTECTION AGENCY'S BUDGET ALSO PROVIDES AN INCREASE FOR R. AND D. AND OTHER AID TO THE NATION'S ENVIRONMENTAL TECHNOLOGY INDUSTRY WHICH FACES COMPETITION FROM GERMANY AND OTHER COUNTRIES THE CLINTON TEAM THOUGH ISN'T A SUCKER FOR EVERY SEXY PROGRAM WITH A HIGH TECH SMILE THE PENTAGON PLANS TO CUT FUNDING TO DEVELOP THE NEXT GENERATION OF VIDEO SCREENS KNOWN AS HIGH DEFINITION T. V. BY TWENTY PERCENT TO SIXTY EIGHT MILLION DOLLARS DURING THE BUSH ADMINISTRATION THE FIGHT OVER H. D. T. V. FUNDING BECAME A SYMBOL OF THE REPUBLICANS' DISPLEASURE WITH SO CALLED INDUSTRIAL POLICY CLINTONITES ARE COMFORTABLE WITH THE CONCEPT OF GOVERNMENT PUSHING COMMERCIAL R. AND D. EVEN IF THEY DON'T LIKE TO ADMIT TO INDUSTRIAL PLANNING AND THEY UNDERSTAND THAT CONGRESS INVARIABLY BOOSTS H. D. T. V. FUNDING ANYWAY TIME WARNER INCORPORATED REPORTED SHARPLY LOWER NET EARNINGS FOR THE FOURTH QUARTER BECAUSE OF HEAVY INTEREST EXPENSE BUT SAID CASH FLOW INCREASED TWO POINT SEVEN PERCENT ON GAINS IN ITS MUSIC PUBLISHING AND HOME BOX OFFICE DIVISIONS NET INCOME FOR THE THREE MONTHS WAS SEVEN MILLION DOLLARS COMPARED WITH SIXTY EIGHT MILLION DOLLARS FOR THE FOURTH QUARTER OF NINETEEN NINETY TWO AFTER PREFERRED DIVIDEND PAYMENTS THE NET INCOME APPLICABLE TO COMMON SHARES WAS FOUR MILLION DOLLARS FOR THE QUARTER COMPARED WITH A NINETY THREE MILLION DOLLAR NET LOSS A YEAR EARLIER THE ENTERTAINMENT COMPANY'S PER SHARE RESULTS WERE AFFECTED BY THE PREFERRED DIVIDEND REQUIREMENTS OF THREE MILLION DOLLARS IN THE NINETEEN NINETY THREE PERIOD AND ONE HUNDRED SIXTY ONE MILLION DOLLARS IN THE YEAREARLIER PERIOD ON A PER SHARE BASIS EARNINGS IN THE NINETEEN NINETY THREE QUARTER WERE ONE CENT COMPARED WITH A NET LOSS OF TWENTY FIVE CENTS A SHARE IN THE FOURTH QUARTER OF NINETEEN NINETY TWO TIME WARNER HAS BEEN ON A CAMPAIGN TO RESTRUCTURE EXPENSIVE DEBT REPLACING COSTLY PREFERRED DIVIDENDS WITH TAX EFFICIENT LOWER COST DEBENTURES TIME WARNER SAID CASH FLOW INCREASED TO SEVEN HUNDRED SIXTY MILLION DOLLARS ON REVENUE OF FOUR POINT ONE BILLION DOLLARS IN THE FOURTH QUARTER COMPARED WITH CASH FLOW OF SEVEN HUNDRED FORTY MILLION DOLLARS ON REVENUE OF THREE POINT EIGHT BILLION DOLLARS IN THE NINETEEN NINETY TWO FOURTH QUARTER CASH FLOW OR OPERATING INCOME BEFORE INTEREST DEPRECIATION AND AMORTIZATION IS A PRIMARY INDICATOR OF HEALTH FOR CABLE COMPANIES AND BECAUSE OF ITS HEAVY DEBT TIME WARNER HAS STRESSED THE CASH FLOW RESULTS IN ITS QUARTERLY REPORTS REVENUE WAS UP NINE POINT SIX PERCENT FOR THE QUARTER THE RESULTS WHICH WERE IN LINE WITH ANALYSTS' EXPECTATIONS WERE BOOSTED BY GAINS IN THE MUSIC AND PUBLISHING GROUPS WHICH REPORTED A COMBINED CASH FLOW OF THREE HUNDRED SIXTY ONE MILLION DOLLARS UP TEN PERCENT ON REVENUE OF ONE POINT NINE SIX BILLION DOLLARS TIME WARNER RESTATED ITS EARNINGS FOR NINETEEN NINETY TWO TO REFLECT THE PURCHASE OF A TWENTY FIVE POINT FIVE PERCENT STAKE IN ITS TIME WARNER ENTERTAINMENT UNIT BY U. S. WEST INCORPORATED IN SEPTEMBER NINETEEN NINETY THREE AND THE ACQUISITION BY ITS FILMED ENTERTAINMENT GROUP OF FIFTY PERCENT OF SIX FLAGS ENTERTAINMENT IT DIDN'T ALREADY OWN IN THE ENTERTAINMENT GROUP FOURTH QUARTER CASH FLOW WAS UP NINE PERCENT TO SIXTY ONE MILLION DOLLARS FOR HOME BOX OFFICE MAINLY BECAUSE OF AN INCREASE IN SUBSCRIBERS BUT DOWN FOR THE FILMED ENTERTAINMENT AND CABLE DIVISIONS IN FILMED ENTERTAINMENT ALTHOUGH THE WARNER BROTHERS STUDIO POSTED A RECORD FOURTH QUARTER CASH FLOW FOR THE SIX FLAGS THEME PARK WAS DOWN BECAUSE OF BUSINESS'S SEASONAL NATURE FOR THE CABLE DIVISION CASH FLOW FOR THE QUARTER WAS DOWN FIVE PERCENT LARGELY BECAUSE OF THE EFFECTS OF THE NINETEEN NINETY TWO CABLE ACT WHICH RESTRICTS RATE INCREASES TIME WARNER STOCK GAINED TWELVE POINT FIVE CENTS TO THIRTY NINE DOLLARS AND SEVENTY FIVE CENTS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY YESTERDAY WAS A DARK DAY FOR THE BELUGA WHALE COMMITTEE FOR ATLANTIC BLUEFIN TUNA RESEARCH AND FOR THE ZEBRA MUSSEL RESEARCH COMMUNITY IN HIS QUEST FOR SOMETHING ANYTHING TO ELIMINATE FROM THE FEDERAL BUDGET PRESIDENT CLINTON IS PROPOSING TO ELIMINATE SCORES OF TINY PROGRAMS ALL ACROSS THE GOVERNMENT ALTHOUGH THE DOLLAR AMOUNTS IN THE ONE POINT FIVE TRILLION DOLLAR BUDGET ARE TINY A LOOK AT THE COMMERCE DEPARTMENT'S NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION WHERE THE PRESIDENT IS PROPOSING TO ELIMINATE MORE THAN FORTY PROGRAMS SUGGESTS THAT THE TRIMS MAY MAKE UP IN PIQUANCY WHAT THEY LACK IN SIZE FOR EXAMPLE THE BUDGET RAISES THIS QUESTION WHERE CAN AN OUSTED SAMOAN METEOROLOGIST FIND WORK THAT WAS THE CONCERN PREOCCUPYING AKAPO AKAPO WHO WITH HIS SEVEN FELLOW NATIONAL WEATHER SERVICE STAFFERS HAVE THEIR VERY OWN LINE ITEM IN THE DREAD QUOTE ILLUSTRATIVE LISTING OF PROGRAMMATIC TERMINATIONS AND REDUCTIONS QUOTE PAGES IN THE PRESIDENT'S FEDERAL BUDGET THIS IS THE FIRST I'VE HEARD ABOUT CUTS NEWS YOU KNOW TRAVELS SLOWLY TO HERE SAYS THE FORTY SIX YEAR OLD MR. AKAPO AS HE CHECKS BAROMETRIC PRESSURE AT HIS TINY WEATHER SERVICE STATION IN LUSH TROPICAL SAMOA I GUESS IT'S THE UNEMPLOYMENT LINE FOR ME OH BOY I'VE GOT TO CALL MY WIFE THEN THERE ARE THOSE TEN FOOT WIDE BUOYS OFF THE CALIFORNIA COAST THAT COST ABOUT ONE HUNDRED THOUSAND DOLLARS A YEAR TO KEEP IN BARNACLES FEDERAL BUDGET CUTTERS HAVE BEEN TRYING TO SINK THEM SINCE THE MID NINETEEN EIGHTIES BUT AS QUICKLY AS THEY DISAPPEARED FROM ONE PART OF THE BUDGET THEY WOULD SHOW UP IN ANOTHER THANKS TO INTERCESSION BY CONGRESS CALIFORNIA FISHERMEN AND BOATERS WHO TROLL NEAR THE BUOYS' TWO SITES OFF THE COASTS OF SANTA CRUZ AND LOS ANGELES SAY THE INFORMATION ON WEATHER AND CURRENTS SUPPLIED BY THE GIZMO LOADED BOBBERS IS INVALUABLE ONE PROBLEM WITH AGENCIES LIKE N. O. A. A. SAYS CAPTAIN NELSON IS A WEALTH OF LINE ITEM FUNDING AND PROGRAMS WITH WEIRD NAMES SOME OF IT JUST JUMPS OUT AT A BUDGET CUTTER HE SAYS THAT'S THE CASE WITH THE ZEBRA MUSSEL AND BLUEFIN TUNA PROGRAMS BOTH OF WHICH ARE TARGETED FOR EXTINCTION IT'S ALSO THE CASE WITH THE BELUGA WHALE COMMITTEE THE GROUP HAS RECEIVED TWO HUNDRED THOUSAND DOLLARS A YEAR FOR THE PAST FIVE YEARS OR SO SAYS TAMRA FARIS A FISHERIES BIOLOGIST AT THE ALASKA REGIONAL OFFICE OF N. O. A. A. WHICH HAS HELPED RUN THE PROGRAM MOST OF THE MONEY ACTUALLY ENDS UP WITH THE ALASKA ESKIMO WHALING COMMISSION WHICH SPEAKS AT WHALING CONFERENCES IN FAVOR OF ITS RIGHT TO FISH THE WHALES FOR SUBSISTENCE THEIR OPPONENTS ENVIRONMENTALISTS WHO DON'T THINK THE WHALES SHOULD BE HUNTED FOR ANY REASON HAVE THE ADDED WEAPON OF A BATTLE CRY QUOTE BABY BELUGA QUOTE A CUDDLY ODE TO THE WHITE WHALES BY RAFFI FOLK SINGING STAR FOR AMERICA'S TWO YEAR OLD SET SURE MY KIDS HAVE LISTENED TO THE SONG BUT PEOPLE NEED TO UNDERSTAND THE ISSUES ARE BROADER THAN THAT SAYS MS. FARIS TERSELY THE MYSTIC MARITIME EDUCATION AND RESEARCH CENTER AT THE RESTORED SEAPORT IN MYSTIC CONNECTICUT HAS THREE EIGHTY SEVEN HISTORIC BOATS IN A HUGE ABANDONED VELVET MILL WHERE A LEAKY ROOF AND MISERABLE CONDITIONS HAS CAUSED SOME DAMAGE THOUGH IT'S NOT A CRISIS YET SAYS CHRIS COX WHO HELPS RUN A CORPORATION THAT MANAGES THE SEAPORT THE PROBLEM IS THAT ONE MILLION DOLLARS A YEAR IN FEDERAL FUNDS TO HELP TURN THE OLD MILL INTO A MUSEUM HAVE BEEN SLATED FOR CUTOFF WE'RE JUST IN THE MIDDLE OF RENOVATION WE CAN'T STOP NOW SAYS MR. COX WHO ADDS THAT SEAPORT OFFICIALS ARE HOPING CONNECTICUT'S CONGRESSIONAL DELEGATION WILL NOT ALLOW THESE UNCONSCIONABLE CUTS THEN THERE IS THE WIND PROFILER DEMONSTRATION NETWORK WHICH HAS ENJOYED ANNUAL FUNDING OF FOUR POINT FOUR MILLION DOLLARS OVER THE PAST FEW YEARS TO BUILD THIRTY TWO GROUND BASED DEVICES THAT MEASURE ATMOSPHERIC WINDS FROM ONE THOUSAND FIVE HUNDRED TO FIFTEEN THOUSAND FEET ABOVE THE EARTH'S SURFACE UP THERE THE POLITICAL CONSTITUENCY IS THIN BUT SOME PILOTS HAVE FOUND SUCH DATA USEFUL ESPECIALLY IN AVOIDING STRONG HEADWINDS THAT EAT UP FUEL IN FACT THERE WERE HOPES THAT THIS PILOT PROGRAM WOULD BE EXPANDED UNTIL YESTERDAY'S CHILL WIND THOUGH NATIONAL WEATHER SERVICE SPOKESMAN FRANK LEPORE SAYS THE DATA COLLECTED BY THE DEVICES WENT TO A GOVERNMENT RESEARCH CENTER IN BOULDER COLORADO NO LAYOFFS ARE EXPECTED IF THE PROGRAM IS ACTUALLY TERMINATED OZONE RESEARCH IS HOT MR. LEPORE OBSERVES AND THE WIND PROFILER STAFFERS MIGHT WELL MOVE OVER TO THAT AS FOR THE FATE OF THE DEVICES THEMSELVES WHICH LOOK LIKE SIX FOOT TALL BEDSPRINGS I'M NOT SURE WHAT WE'LL DO MR. LEPORE SAYS I JUST CAN'T TAKE ANY MORE STUFF IN MY HOUSE DRUG TESTING GETS A BIG BOOST FROM THE CALIFORNIA SUPREME COURT LAST MONTH THE COURT ALLOWED THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION TO CONDUCT RANDOM DRUG TESTING OF STUDENT ATHLETES IT SAID THE PRIVATE SECTOR LIKE THE GOVERNMENT MUST ABIDE BY THE STATE CONSTITUTION'S RIGHT OF PRIVACY BUT WHILE THE GOVERNMENT CAN ONLY OVERRIDE THE PRIVACY RIGHT IF IT HAS A QUOTE COMPELLING STATE INTEREST QUOTE THE PRIVATE SECTOR HAS MORE LEEWAY IT CAN INVADE PRIVACY FOR QUOTE LEGITIMATE QUOTE INTERESTS ALTHOUGH THE COURT DIDN'T RULE ON WORKPLACE DRUG TESTING SPECIFICALLY THE DECISION IS VERY GOOD NEWS FOR COMPANIES WHO WANT TO TEST EMPLOYEES FOR DRUGS SAID VICTOR SCHACHTER A SAN FRANCISCO LAWYER HE SAID IT WILL ALLOW COMPANIES TO TEST JOB APPLICANTS AS WELL AS EMPLOYEES WHOM THEY REASONABLY SUSPECT ARE TAKING DRUGS WHETHER COMPANIES CAN DO RANDOM DRUG TESTING REMAINS UNCLEAR SOME SEVEN PERCENT OF AMERICAN WORKERS SURVEYED IN NINETEEN NINETY USED AN ILLICIT DRUG IN THE PRECEDING MONTH DOWN FROM FOURTEEN PERCENT IN NINETEEN SEVENTY NINE ACCORDING TO THE NATIONAL RESEARCH COUNCIL SELF DEFENSE CLASSES GO TO THE WORKPLACE AS FEAR OF VIOLENCE INCREASES MORE COMPANIES ARE OFFERING COURSES IN RESPONSE TO EMPLOYEE REQUESTS AND INCREASED CRIMINAL ACTIVITY STRIDE RITE CORPORATION IN CAMBRIDGE MASSACHUSETTS BEGAN OFFERING A PERSONAL DEFENSE WORKSHOP LAST YEAR AFTER A WOMAN NOT AN EMPLOYEE WAS MUGGED IN A NEARBY PARKING LOT MOST EMPLOYEES WHO SIGN UP FOR THE CLASSES ARE WOMEN SOME COMPANIES ASK SECURITY GUARDS TO TEACH SELF DEFENSE TECHNIQUES WHILE OTHERS HIRE OUTSIDE CONSULTANTS TO SHOW HOW TO HANDLE DANGEROUS SITUATIONS OR TO SELL EMPLOYEES PEPPER SPRAY COMMONWEALTH EDISON COMPANY TEACHES REPAIR CREWS WHAT TO DO WHEN CONFRONTED BY GANG MEMBERS IT ALSO IS DEVELOPING A VIDEO TO SHOW LINE SUPERVISORS HOW TO DEFUSE POTENTIAL OUTBURSTS AMONG EMPLOYEES VALENTINES A. T. WORK EMPLOYING WORKERS' SPOUSES GAINS ACCEPTANCE MOST COMPANIES EMPLOY MARRIED COUPLES AND LIKE THE RESULTS SAYS THE SOCIETY OF HUMAN RESOURCES MANAGEMENT MORE THAN EIGHTY PERCENT OF FOUR HUNDRED THIRTY TWO COMPANIES SURVEYED HIRED SPOUSES SOME SAID RELATIVES INCREASE PRODUCTIVITY THROUGH FAMILY COMPETITION THE SOCIETY SAYS CANANDAIGUA WINE COMPANY IN CANANDAIGUA N. Y. SAYS HIRING RELATIVES IS A PLUS BECAUSE FAMILIES' SUCCESS GETS BOUND WITH THE COMPANY EMPLOYERS GENERALLY PROHIBIT COUPLES FROM SUPERVISING ONE ANOTHER AND SOME WON'T HIRE EXECUTIVES' SPOUSES BUT BANK OF BOSTON DROPPED A BAN ON EMPLOYING SENIOR OFFICERS' SPOUSES SAYING IT WAS LOSING GOOD EMPLOYEES SMALL TOWN COMPANIES LIKE L. S. STARRETT A PRECISION TOOLMAKER IN ATHOL MASSACHUSETTS SAYS IT IS HARD TO AVOID HIRING FAMILY MEMBERS IT SHUNS THE TERM NEPOTISM EXTRAMARITAL OFFICE ROMANCES CAN LEAD TO DISMISSAL FOR IRRESPONSIBILITY BUT SOME FIRED LOVERS SUE FOR DISCRIMINATION OR INVASION OF PRIVACY SAYS CONSULTANT GOODRICH AND SHERWOOD STRIKING OUT THE NUMBER OF MAJOR STRIKES IN THE U. S. SANK TO ANOTHER RECORD LOW IN NINETEEN NINETY THREE THE BUREAU OF LABOR STATISTICS SAYS ONLY THIRTY FOUR NEW STRIKES INVOLVING ONE HUNDRED SEVENTY EIGHT THOUSAND EIGHT HUNDRED WORKERS BEGAN DOWN FROM THIRTY FIVE IN NINETEEN NINETY TWO AND A HIGH OF FOUR HUNDRED SEVENTY IN NINETEEN FIFTY TWO THE NUMBER OF NEW STRIKES STARTED PLUMMETING IN NINETEEN EIGHTY ONE AFTER PRESIDENT REAGAN FIRED STRIKING AIR TRAFFIC CONTROLLERS COMPUTER ILLITERATES CAN DO SOME HIGH TECH JOB HUNTING STARTING TODAY NEW YORK BASED SELF PLACEMENT NETWORK INCORPORATED WILL SEND RESUMES OUT ON SEVEN MAJOR ON LINE NETWORKS USED BY SIXTEEN MILLION PEOPLE IN ONE HUNDRED FORTY FIVE COUNTRIES THE COMPUTER WILL SEARCH WEEKLY FOR JOB LEADS AMONG ONE HUNDRED TEN THOUSAND LISTINGS IN ELECTRONIC JOB BANKS AND CLASSIFIED ADS PUT ON LINE BY FIFTY FIVE MAJOR NEWSPAPERS THE FEDERAL GOVERNMENT STILL EMPLOYS A HIGHER PERCENTAGE OF BLACKS AND ASIANS THAN THE PRIVATE SECTOR THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION REPORTS BLACKS ACCOUNTED FOR SEVENTEEN POINT NINE PERCENT OF FEDERAL WORKERS IN NINETEEN NINETY ONE COMPARED WITH THIRTEEN POINT TWO PERCENT OF PRIVATE SECTOR EMPLOYEES ASIANS ACCOUNTED FOR THREE POINT EIGHT PERCENT OF THE FEDERAL WORK FORCE COMPARED WITH TWO POINT EIGHT PERCENT IN THE PRIVATE SECTOR UNEMPLOYMENT RISES AROUND THE WORLD AND THE OUTLOOK REMAINS DIM MORE PEOPLE ARE OUT OF WORK THAN EVER BEFORE ACCORDING TO THE INTERNATIONAL LABOR ORGANIZATION SOME THIRTY PERCENT OF THE WORLD'S LABOR FORCE IS UNEMPLOYED OR UNDEREMPLOYED ONE HUNDRED TWENTY MILLION PEOPLE ARE REGISTERED UNEMPLOYED AND ANOTHER SEVEN HUNDRED MILLION ARE UNDEREMPLOYED SAYS ALI TAQI THE I. L. O.'S CHIEF OF STAFF UNEMPLOYMENT IS FORECAST TO REACH EIGHT POINT SIX PERCENT IN INDUSTRIALIZED NATIONS BY THE END OF NINETEEN NINETY FOUR THE HIGHEST LEVEL SINCE THE DEPRESSION THE RATE IS PROJECTED TO FALL TO SIX POINT FIVE PERCENT IN THE U. S. IN THE DEVELOPING WORLD JOBLESSNESS IS WORSENING IN ALL REGIONS EXCEPT SOUTHEAST AND EAST ASIA YOUTH UNEMPLOYMENT CONTINUES TO DEEPEN IN POLAND A THIRD OF ALL THE UNEMPLOYED IN NINETEEN NINETY TWO WERE UNDER AGE TWENTY FOUR MOST HAD COMPLETED HIGH SCHOOL POVERTY HAS SKYROCKETED IN EASTERN EUROPE IN BULGARIA SEVENTY THREE PERCENT OF ALL HOUSEHOLDS WERE BELOW THE POVERTY LINE IN NINETEEN NINETY TWO UP FROM FORTY TWO PERCENT TWO YEARS EARLIER THE CHECKOFF OATMEAL ON MY BLAZER RECENTLY PUBLISHED BY PANACHE PUBLICATIONS IN APPLETON WISCONSIN DESCRIBES PREPARING A BUSINESS PLAN FOR MOTHERHOOD AS THE BUNDLE OF JOY LAUNCH PLAN. FOURTEEN PERCENT OF ALL EXPATRIATE EMPLOYEES ARE FEMALE TWICE AS MANY AS FIVE YEARS AGO PENNY PINCHING ALERT THE I. R. S. RAISED THE STANDARD MILEAGE RATE FOR BUSINESS TRIPS TO TWENTY NINE CENTS FROM TWENTY EIGHT CENTS CHINA REDUCED STATE EMPLOYEES' WORKWEEK TO FORTY FOUR HOURS FROM FORTY EIGHT STARTING MARCH FIRST AND ORDERED EIGHT HOUR SHIFTS GIVING MOST WORKERS SATURDAY AFTERNOONS OFF THOUGH THIS WAS SAID TO MARK THE FIRST SUCH REDUCTION SINCE THE COMMUNIST GOVERNMENT TOOK OVER IN NINETEEN FORTY NINE CHINA'S OFFICIAL WORKWEEK STILL IS ONE OF THE WORLD'S LONGEST ROOTED IN SOCIALIST MANAGEMENT LINKING NATIONAL PRESTIGE TO STEADY PRODUCTION GROWTH MOST INDUSTRIALIZED COUNTRIES HAVE CUT THEIR WORKWEEKS TO FORTY HOURS OR LESS SEEKING LOWER LABOR COSTS WITHOUT LAYOFFS TO COPE WITH LOWER DEMAND AMID RECESSIONS CHINESE WORKERS HAD COMPLAINED THAT THE FORTY EIGHT HOUR WORKWEEK NOT ONLY DIDN'T IMPROVE PRODUCTIVITY AT UNPROFITABLE STATE ENTERPRISES BUT HURT MORALE SEPARATELY CHINA HAS OPENED A NUCLEAR PLANT THIRTY MILES FROM HONG KONG IN SHENZHEN WHERE A SECOND NINE HUNDRED MEGAWATT REACTOR IS TO START COMMERCIAL PRODUCTION IN MIDYEAR THE COUNTRY'S ONLY OTHER NUCLEAR PLANT IN COASTAL ZHEJIANG PROVINCE HAS BEEN IN TRIAL OPERATION FOR TWO YEARS THE GOVERNMENT AIMS TO HAVE NUCLEAR POWER SUPPLY FIVE PERCENT OF CHINA'S ELECTRICITY NEEDS BY THE YEAR TWO THOUSAND TWENTY THE PHILIPPINES DELAYED UNTIL THE END OF THIS MONTH INCREASING PRICES OF OIL PRODUCTS DENOUNCED BY POLITICIANS BUSINESS AND LABOR PRESIDENT FIDEL RAMOS CAVED IN TO PROTESTS INCLUDING BOMBINGS AND A NATIONAL STRIKE THREAT THE INCREASES OF AS MUCH AS TWENTY EIGHT PERCENT ARE AIMED AT REDUCING A CHRONIC BUDGET DEFICIT AMID TAX COLLECTION PROBLEMS AND CONGRESSIONAL RELUCTANCE TO PASS NEW TAXES THE OIL PRICING LEVY DIDN'T NEED LEGISLATIVE APPROVAL AND OFFERED EASY COLLECTION ALTERNATIVES WILL BE STUDIED SUCH AS BOOSTING THE OIL LEVY'S RELATIVE EFFECT ON HIGHER INCOME GROUPS CUTTING THE BUDGET OR SPEEDING PRIVATIZATIONS BRAZILIAN AUTO MAKERS IN JANUARY ASSEMBLED ONE HUNDRED SIX THOUSAND SIX HUNDRED VEHICLES A RECORD FOR THE MONTH AND A FORTY PERCENT JUMP FROM A YEAR EARLIER THE SECTOR ALSO RECAPTURED TENTH PLACE IN WORLD PRODUCTION IN NINETEEN NINETY THREE FROM NUMBER TWELVE IN NINETEEN NINETY TWO BRAZILIAN BUSINESS TRADITIONALLY SLOWS IN JANUARY THE HEIGHT OF THE SUMMER VACATION SEASON IN THE SOUTHERN HEMISPHERE YET DOMESTIC AUTO SALES IN JANUARY SOARED FORTY SIX PERCENT TO EIGHTY THREE THOUSAND NINE HUNDRED UNITS CONTINUING A BOOM SINCE ASSEMBLERS PARTS MAKERS DISTRIBUTORS AND GOVERNMENTS AGREED LAST YEAR ON LOWER PROFIT MARGINS AND TAXES MOLDOVA AND RUSSIA SIGNED A PACT ON ECONOMIC COOPERATION FOR THIS YEAR THE TRADE ACCORD CALLS FOR MOLDOVA TO PAY WORLD MARKET PRICES FOR RUSSIAN OIL AND NATURAL GAS MOLDOVA AND OTHER FORMER SOVIET REPUBLICS LAST YEAR PAID BELOW MARKET PRICES FOR RUSSIAN ENERGY SUPPLIES YET MOLDOVA HAS RUN UP A THIRTY TWO MILLION DOLLAR DEBT TO MOSCOW FOR NATURAL GAS UNDER THE PACT RUSSIA PLANS TO BUY FARM PRODUCTS AND NONFERROUS METALS FROM MOLDOVA WHICH WILL MAINLY IMPORT FUELS FROM RUSSIA THE SOUTH KOREAN GOVERNMENT WILL PROPOSE LEGAL REVISIONS TO LIBERALIZE FOREIGN INVESTMENT IN INFRASTRUCTURE PROJECTS SUCH AS ROADS AND PORTS THE LEGISLATION WOULDN'T ALLOW OVERSEAS INVESTORS MANAGEMENT RIGHTS IN PUBLIC WORKS DEALS AND IT WOULD LIMIT THEM TO JOINING DOMESTIC GROUPS OR BUYING STAKES BUT THE PROPOSAL ALSO CALLS FOR TAX AND OTHER INCENTIVES TO ENSURE RETURNS ON INVESTMENT THE GOVERNMENT HOPES TO IMPROVE THE NATION'S INFRASTRUCTURE INADEQUACIES BLAMED AS AN OBSTACLE TO FASTER ECONOMIC GROWTH ARGENTINA SEEKS TO MAKE STOCKS AND FIXED INCOME SECURITIES SUBJECT TO THE LUXURY TAX AN OFFICIAL SAID PLANNED LEGISLATION WOULD CUT TO ZERO POINT FIVE PERCENT FROM ONE PERCENT THE TAX RATE ON NONESSENTIAL GOODS BUT APPLY IT TO ASSETS SUCH AS EQUITIES SECOND HOMES PLANES AND BOATS VALUED AT MORE THAN ONE HUNDRED ONE THOUSAND DOLLARS THE PROPOSAL WOULDN'T APPLY TO COMPANIES INVESTMENT FUNDS OR FOREIGN INVESTORS IT WOULD TRIPLE LUXURY TAX REVENUE TO THREE HUNDRED FIFTY FOUR MILLION DOLLARS NEXT YEAR FROM ONE HUNDRED THIRTEEN MILLION DOLLARS LAST YEAR ARGENTINA'S TAX SYSTEM HAS BEEN FAULTED FOR RELYING HEAVILY ON CONSUMER LEVIES THAT BURDEN LOWER INCOME PEOPLE BRITAIN WHICH PROHIBITS TOBACCO ADVERTISING ON RADIO AND TELEVISION DECIDED AGAINST IMPOSING A BLANKET BAN BUT THE HEALTH MINISTRY SAID IT WOULD OPEN NEGOTIATIONS WITH THE TOBACCO INDUSTRY ON STRENGTHENING A VOLUNTARY AD AGREEMENT IN AN EFFORT TO CUT SMOKING AMONG YOUTHS QUOTE THE GOVERNMENT HAS REVIEWED THE EVIDENCE THOROUGHLY AND FOUND LITTLE TO SUPPORT THE ARGUMENT THAT A STATUTORY BAN WOULD HAVE A DRAMATIC EFFECT ON FURTHER REDUCING SMOKING QUOTE THE MINISTRY SAID TO HEAD OFF ANY LEGISLATION TO WIDEN THE RADIO AND T. V. AD BAN TOBACCO COMPANIES HAVE AGREED THEY WON'T ADVERTISE IN MOVIE THEATERS AND OUTDOORS NEAR SCHOOLS BUT DOCTORS LOBBYING GROUPS AND THE STATE FINANCED HEALTH ADVISORY COUNCIL SOUGHT A TOTAL BAN ON ADVERTISING TOBACCO PRODUCTS CITING PREMATURE DEATHS IN THE U. K. FROM SMOKING RELATED DISEASES FRENCH FISHERMEN VOTED TO EXTEND THEIR NINE DAY STRIKE FOR THREE DAYS TO PRESS FOR MORE RELIEF FROM FOREIGN IMPORTS IN AN APPARENT APPEASEMENT MOVE FRENCH CUSTOMS AGENTS BLOCKED FIFTY TONS OF FISH SHIPMENTS THOUGH BRITAIN HAS A CREMATION RATE OF SEVENTY PERCENT ITS URBAN CEMETERIES ARE EITHER FULL OR CLOSE TO IT SO LONDON CEMETERY OFFICIALS PROPOSED THAT AFTER SEVENTY FIVE YEARS REMAINS IN GRAVES WITHOUT LINKS TO LIVING RELATIVES BE PUT IN SMALLER CONTAINERS AND REBURIED DEEPER ALLOWING NEW BURIALS ABOVE THEM CLINTON PROPOSED A ONE POINT FIVE TRILLION DOLLAR FISCAL NINETEEN NINETY FIVE BUDGET THAT REFLECTS THE ADMINISTRATION'S PRIORITIES WHILE HEWING TO SPENDING CAPS THE BIG WINNERS ARE THE DEPARTMENTS OF JUSTICE COMMERCE EDUCATION AND TRANSPORTATION WHICH OVERSEE MANY OF THE INVESTMENT PROGRAMS IMPORTANT TO THE PRESIDENT DEBATE OVER THE DEFENSE BUDGET MEANWHILE IS EXPECTED TO FOCUS LESS ON ITS ALLOTMENT THAN ON A NEW VISION OF THE MILITARY'S ROLE THE PROPOSED BUDGET WOULD RAISE ABOUT ONE POINT FIVE BILLION DOLLARS IN NEW USER FEES IN FISCAL NINETEEN NINETY FIVE YIELDING ABOUT EIGHT POINT FOUR BILLION DOLLARS THROUGH NINETEEN NINETY NINE WITH WALL STREET AND THE PHARMACEUTICAL INDUSTRY GETTING HIT THE HARDEST THE PROPOSAL WOULD SHRINK THE DEFICIT FOR THE THIRD YEAR IN A ROW TO ONE HUNDRED SIXTY FIVE POINT ONE BILLION DOLLARS THIS YEAR JOHN SCULLEY QUIT AS SPECTRUM'S CHAIRMAN AND C. E. O. AND WAS FORCED TO ADMIT HE ACCEPTED A MULTIMILLION DOLLAR PAY PACKAGE WITHOUT KNOWING THE FIRM WAS UNDER FEDERAL INVESTIGATION THE DOW JONES INDUSTRIALS SURGED THIRTY FOUR POINT NINE OH TO THREE THOUSAND NINE HUNDRED SIX POINT THREE TWO ROARING BACK FROM FRIDAY'S NINETY SIX POINT PLUNGE AFTER THE FED'S DECISION TO LIFT SHORT TERM INTEREST RATES ANALYSTS SAID INVESTORS REALIZED THE INCREASE WON'T HURT THE ECONOMY STOCK MARKETS WORLD WIDE TUMBLED AS MUCH AS SEVEN PERCENT IN REACTION TO THE TWO POINT FOUR PERCENT DECLINE ON WALL STREET FRIDAY JAPAN'S RULING COALITION AGREED ON HOW TO FINANCE A LONG AWAITED TAX CUT POSSIBLY CLEARING THE WAY FOR TOKYO TO DELIVER THE REST OF ITS STIMULUS PLAN THE NIKKEI ROSE TWO POINT FIVE PERCENT ON THE NEWS TO END THE MORNING SESSION AT TWENTY THOUSAND FIVE HUNDRED SIXTEEN POINT THREE FIVE U. P. S. AND THE TEAMSTERS UNION REACHED A STRIKE ACCORD THE COMPANY AGREED NOT TO DISCIPLINE STRIKING WORKERS AND TO WAIVE DAMAGE CLAIMS THE CONGRESSIONAL BUDGET OFFICE IS EXPECTED TO RECOMMEND THAT THE CLINTON HEALTH PLAN BE PART OF THE FEDERAL BUDGET DESPITE WHITE HOUSE PROTESTS KELLOGG IS RAISING THE PRICES OF THIRTY EIGHT COLD CEREALS AN AVERAGE OF TWO POINT SIX PERCENT ITS SECOND PRICE INCREASE IN SIX MONTHS T. TWO MEDICAL AGREED TO MERGE WITH CURAFLEX HEALTHINFUSION AND MEDISYS TO CREATE THE SECOND LARGEST U. S. INFUSION THERAPY FIRM BEHIND CAREMARK ALCOA IS SLASHING ONE HUNDRED THOUSAND METRIC TONS OF ANNUAL ALUMINUM PRODUCTION OR ABOUT EIGHT PERCENT OF DOMESTIC CAPACITY A GROWING NUMBER OF U. S. COMPANIES ARE SETTING HIGHER RETURN ON INVESTMENT CRITERIA FOR CAPITAL SPENDING ECONOMISTS SAY BUT NEVERTHELESS AREN'T CUTTING THEIR INVESTMENT PLANS SEVERAL PHAR MOR DIRECTORS AND OTHER SHAREHOLDERS COULD BE FORCED TO REPAY ABOUT SEVENTY FIVE MILLION DOLLARS RECEIVED FROM THE COMPANY IN A NINETEEN NINETY ONE STOCK BUYBACK TIME WARNER REPORTED SHARPLY LOWER PROFIT FOR THE FOURTH QUARTER BECAUSE OF HEAVY INTEREST EXPENSE SMITH CORONA AND BROTHER INDUSTRIES OF JAPAN AGREED TO END FOURTEEN YEARS OF LITIGATION OVER CHARGES OF DUMPING TOYOTA IS EXPECTED TO REPORT AN EIGHTY THREE PERCENT DROP IN PROFIT FOR ITS FIRST HALF BUT THAT IS STILL AN IMPROVEMENT FROM LAST SUMMER WHEN WITH THE YEN SOARING SOME ANALYSTS SAID THE JAPANESE CAR MAKER MIGHT POST ITS FIRST LOSS SINCE NINETEEN FORTY NINE R. H. MACY IS EXPECTED TO ASK A FEDERAL BANKRUPTCY COURT FOR A SIX MONTH EXTENSION OF ITS EXCLUSIVE RIGHT TO FILE A CHAPTER ELEVEN REORGANIZATION PLAN CONSUMER CREDIT INCREASED AT AN ELEVEN POINT TWO PERCENT ANNUAL RATE IN DECEMBER RISING SEVEN POINT TWO EIGHT BILLION DOLLARS TO SEVEN HUNDRED EIGHTY NINE POINT EIGHT FOUR BILLION DOLLARS BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED THIRTY SIX POINT FOUR ONE OFF TWENTY FOUR POINT FOUR SEVEN COMMODITIES OIL FIFTEEN DOLLARS AND TWENTY FIVE CENTS A BARREL OFF THIRTY EIGHT CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY FOUR POINT EIGHT OH OFF ZERO POINT SIX NINE SPOT INDEX ONE HUNDRED THIRTY POINT FOUR OH OFF ZERO POINT EIGHT SEVEN DOLLAR ONE HUNDRED EIGHT POINT SEVEN OH YEN OFF ZERO POINT SIX ZERO ONE POINT SEVEN FIVE NINE OH MARKS UP ZERO POINT ZERO ZERO ZERO FIVE VIOLET WEI SLOWLY HITCHES UP HER SWEATER AND PLACES A SMALL PLASTIC SPEAKER AGAINST HER SWOLLEN BELLY THE TWENTY EIGHT YEAR OLD ACCOUNTANT TURNS ON A CASSETTE PLAYER THEN LEANS BACK AS THE TAPE BEGINS TO PLAY TO HER WOMB QUOTE LET'S STUDY ENGLISH AGAIN QUOTE A WOMAN'S VOICE CHIMES BRIGHTLY IN CHINESE SHE REELS OFF A LIST OF WORDS AND PHRASES IN CHINESE AND ENGLISH FATHER MAMMY READ BOOK HOW DO YOU DO BEFORE THE LESSON SEGUES INTO TWINKLE TWINKLE LITTLE STAR OUR BABY WON'T NECESSARILY KNOW ENGLISH WHEN HE'S BORN BUT AT LEAST HE'LL HAVE HEARD IT BEFORE SAYS MS. WEI'S HUSBAND LI XIAOLEI THIRTY ONE WHO IS A MANAGER IN THE ELECTRONICS COMPANY WHERE HIS WIFE WORKS HE'LL BE MORE INTERESTED IN IT SO HE CAN LEARN FASTER BUT WOULDN'T IT BE SOMETHING IF HE COULD CALL OUT MAMA AS SOON AS HE'S BORN SUCH ARE THE HOPES OF MILLIONS OF PARENTS IN TODAY'S CHINA RESTRICTED BY THE GOVERNMENT'S ONE CHILD PER FAMILY POLICY AND ENRICHED BY ECONOMIC REFORM THESE COUPLES CHERISH HIGH HOPES FOR THEIR ONE SHOT AT POSTERITY UNWILLING JUST TO LET NATURE TAKE ITS COURSE THEY GO ALL OUT TO NURTURE INTELLIGENT BEAUTIFUL HEALTHY CHILDREN EVEN BEFORE THEY ARE BORN TAIJIAO PRENATAL EDUCATION AND ZAOJIAO EARLY EDUCATION ARE HARDLY UNIQUE TO CHINA BUT IN THIS NATION THE TREND REFLECTS MORE THAN PARENTAL AMBITIONS IT IS ALSO THE OFFSPRING OF A CAMPAIGN BY HEALTH OFFICIALS AND HOSPITALS TO ENHANCE THE MASSES AS PART OF THIS CAMPAIGN THE GOVERNMENT IS WORKING ON A LAW THAT IN DRAFT FORM CALLS FOR ABORTIONS AND STERILIZATIONS TO REDUCE THE INCIDENCE OF BIRTH DEFECTS CONTROLLING POPULATION GROWTH AND RAISING THE QUALITY OF THE PEOPLE ARE TWO BASIC POLICIES OF CHINA SAYS DOCTOR SUNG WEIBING OF TIANTAN HOSPITAL QUOTE PRENATAL EDUCATION SETS A VERY GOOD FOUNDATION FOR THE FUTURE EDUCATION OF OUR CHILDREN SO OF COURSE THAT'S GOOD FOR CHINA QUOTE THE RESPONSE HAS BEEN STRONGEST IN LARGE CITIES AND ALONG THE PROSPEROUS COAST WHERE NEWLY MONEYED COUPLES ARE EAGER TO GIVE THEIR CHILDREN OPPORTUNITIES THEY NEVER HAD HOSPITALS HOLD CLASSES FOR EXPECTING PARENTS AND CONSCIENTIOUS GRANDPARENTS AND SELL THE TAPED LESSONS THAT WOMEN LIKE MS. WEI USE AT HOME NEWSPAPERS AND TELEVISION RUN FREQUENT FEATURES ON FETAL AND INFANT SCHOLASTICS FOR PREGNANT WOMEN AND THE CHILDREN THEY CARRY IT ALL MEANS SUBMITTING TO A RIGOROUS DAILY REGIMEN OF LESSONS MASSAGES FLASHING LIGHTS INTENDED TO STIMULATE EYESIGHT AND BRAIN ACTIVITY WHEN TRAINED ON THE FETUS AND EVEN GAZING AT PORTRAITS OF BEAUTIFUL PEOPLE AND THAT'S JUST THE BEGINNING ONCE THE BABY HAS GRADUATED FROM WOMB TO CRIB THE COURSE LOAD CAN GET WEIGHTY TANG DYNASTY POETRY CHINESE CHARACTER RECOGNITION MUSIC AND FURTHER LANGUAGE TRAINING ENGLISH IS PREFERRED AMONG OTHER SUBJECTS SOME CHINESE FEAR THAT IN PURSUING PERFECT PROGENY THE NATION RISKS CREATING A ME GENERATION PRESSURED TO EXCEL BUT LACKING PERSONAL VALUES FROM THE BEGINNING SUCCESS IS BEING DEFINED FOR THESE KIDS ONLY AS GETTING HIGH POWERED JOBS MAKING LOTS OF MONEY OR BECOMING FAMOUS SAYS MA RONG ASSOCIATE DIRECTOR OF BEIJING UNIVERSITY'S INSTITUTE OF SOCIOLOGY AND ANTHROPOLOGY THEY BECOME DEPRESSED IF THEY CAN'T BECOME HIGH LEVEL OFFICIALS THIS PLACES A HEAVY BURDEN ON THEM BECAUSE THEY DON'T HAVE ANY TIME TO ACT LIKE KIDS FOR MOST CHINESE THOUGH THE NEED TO BREED A BETTER BABY OUTWEIGHS ANY FEAR OF REARING A NEUROTIC OVERACHIEVER THAT'S THE CASE WITH DI LANFENG IF MY DAUGHTER HAS TALENT WON'T SHE HAVE EVERYTHING ASKS THE TWENTY FIVE YEAR OLD NURSE NOW IN HER NINTH MONTH MS. DI WANTS BEAUTY CUTE WITH BIG EYES AS WELL AS BRAINS FOR THE DAUGHTER NICKNAMED TIANTIAN THAT HER DOCTOR TOLD HER SHE WILL HAVE SOME PRENATAL PUNDITS SAY PREGNANT WOMEN WHO STARE AT PICTURES OF ALLURING PEOPLE WILL LIKELY HAVE GOODLOOKING BABIES SO SHE HAS DECORATED HER APARTMENT WITH POSTERS OF WIDE EYED CHINESE INFANTS HONG KONG POP SINGERS AND BLOND COUPLES STROLLING ALONG BEACHES QUOTE I MOSTLY LOOK AT THE POSTERS WHEN I FEEL DOWN QUOTE SHE SAYS BUT I WANT MY CHILD TO BE PRETTY SO I'VE GOT SOME CUTE BABY POSTERS UP TOO MS. DI ALSO WANTS TO DEVELOP HER DAUGHTER'S EAR FOR MUSIC SO FOUR OR FIVE TIMES A DAY SHE TURNS ON TAPED NURSERY SONGS OR CHINESE EASY LISTENING ON THE RADIO TO ROUND OUT HER FETUS'S CHARACTER I TELL TIANTIAN THREE TIMES BEFORE I GO TO BED EACH NIGHT TO GROW UP SMARTER AND GROW UP PRETTIER MS. DI LAUGHS A LITTLE EMBARRASSED SOCIETY HAS CHANGED AND COMPETITION IS MUCH TOUGHER THAN IT WAS WHEN I WAS GROWING UP KEEPING UP WITH THE NEIGHBORS IS DEFINITELY A FACTOR BEHIND THE PRENATAL ED CRAZE JEWELRY SHOP MANAGER GUO JINGYIAN PROUDLY RELATES THE SUPERIOR PROGRESS OF HER DAUGHTER ALSO CALLED TIANTIAN THANKS TO TAPED LESSONS TUMMY MASSAGES AND ONE WAY CONVERSATIONS BETWEEN MOTHER AND FETUS TIANTIAN MS. GUO SAYS COULD HOLD HER OWN BOTTLE AT THREE MONTHS AND CRAWL AT SIX MONTHS A FULL MONTH BEFORE THE AVERAGE UNSCHOOLED BABY NOW AT ELEVEN MONTHS SHE INDICATES HER AGE BY HOLDING UP A FINGERNOT THAT SHE HAS A SYSTEM FOR COUNTING HIGHER THAN TEN BUT JUST TO SHOW SHE IS ALMOST ONE YEAR OLD THE BABIES OF MY COLLEAGUES AND FRIENDS ARE ESPECIALLY SLOW THE TWENTY SIX YEAR OLD SAYS YOU ASK THEM HOW OLD THEY ARE AND THEY HAVE NO IDEA WHAT YOU'RE TALKING ABOUT SOMETIMES THE EXTENDED FAMILY GETS INVOLVED LAST YEAR WHILE TWENTY SEVEN YEAR OLD WANG XIMENG WAS PREGNANT HER HUSBAND AND HER PARENTS WOULD GATHER ROUND HER TO TALK TO THE FETUS QUOTE IT WAS LIKE SHE WAS SITTING HERE WITH US QUOTE SAYS MS. WANG NOW THE MOTHER OF FOUR MONTH OLD MINGMING GAO WENDI A THOUGHTFUL NINE MONTH OLD WITH SPIKY HAIR CAN RECOGNIZE ALMOST ANY OBJECT IN HER HOUSE SAYS PROUD MOM LI WENWEN HOLDING WENDI IN HER ARMS MS. LI NAMES SEVERAL OBJECTS DOOR MIRROR HUMIDIFIER EACH TIME WENDI SCANS THE ROOM UNTIL SHE FIXES HER GAZE ON THE RIGHT ONE MS. LI WHO IS TAKING TWO YEARS' LEAVE FROM HER JOB AS A COMPUTER SCIENTIST HAS LABELED THINGS IN HER HOUSE IN CHINESE ENGLISH AND JAPANESE AROUND THE BABY'S CRIB HANG FIVE TANG DYNASTY POEMS WRITTEN IN BIG CHINESE CHARACTERS THE ROMAN ALPHABET AND THE NUMBERS ONE THROUGH TEN BESIDES GOING OVER THESE SEVERAL TIMES EACH DAY WITH WENDI MS. LI BEFORE EACH MEAL RECITES A POEM ABOUT NOT WASTING FOOD DURING HER PREGNANCY THE EMPHASIS WAS ON BABY BETTERMENT THROUGH NUTRITION I ATE WHATEVER FOOD PEOPLE SAID WAS GOOD MS. LI SAYS APPLES AND TOMATOES FOR WHITE SKIN AND VEGETABLES BECAUSE I HEARD THEY'RE GOOD FOR PUTTING MORE WAVES IN THE BRAIN COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND THREE EIGHTHS PERCENT HIGH THREE AND ONE EIGHTH PERCENT LOW THREE AND ONE EIGHTH PERCENT NEAR CLOSING BID THREE AND ONE QUARTER PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT THREE THREE PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT THREE FIVE PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT FOUR OH PERCENT SIXTY TO ONE HUNDRED NINETEEN DAYS THREE POINT FOUR FIVE PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT FOUR SEVEN PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT FIVE OH PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT FIVE FIVE PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT FOUR OH PERCENT THIRTY DAYS THREE POINT FOUR THREE PERCENT SIXTY DAYS THREE POINT FOUR EIGHT PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT SIX EIGHT PERCENT ONE MONTH TWO POINT SIX NINE PERCENT TWO MONTHS TWO POINT SEVEN FOUR PERCENT THREE MONTHS TWO POINT NINE ONE PERCENT SIX MONTHS THREE POINT TWO EIGHT PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT THREE OH PERCENT ONE MONTH THREE POINT FOUR OH PERCENT THREE MONTHS THREE POINT FIVE FIVE PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT TWO SEVEN PERCENT THIRTY DAYS THREE POINT THREE THREE PERCENT SIXTY DAYS THREE POINT THREE EIGHT PERCENT NINETY DAYS THREE POINT FOUR ONE PERCENT ONE HUNDRED TWENTY DAYS THREE POINT FOUR FIVE PERCENT ONE HUNDRED FIFTY DAYS THREE POINT FOUR EIGHT PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT ONE MONTH THREE AND SEVEN SIXTEENTHS PERCENT THREE AND FIVE SIXTEENTHS PERCENT TWO MONTHS THREE AND ONE HALF PERCENT THREE AND THREE EIGHTHS PERCENT THREE MONTHS THREE AND NINE SIXTEENTHS PERCENT THREE AND SEVEN SIXTEENTHS PERCENT FOUR MONTHS THREE AND FIVE EIGHTHS PERCENT THREE AND ONE HALF PERCENT FIVE MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT THREE AND NINE SIXTEENTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND THREE EIGHTHS PERCENT ONE MONTH THREE AND ONE HALF PERCENT THREE MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT SIX MONTHS FOUR AND ONE SIXTEENTH PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT EIGHT PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY SEVENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT TWO FOUR PERCENT THIRTEEN WEEKS THREE POINT FOUR OH PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SEVEN POINT ONE OH PERCENT SIXTY DAYS SEVEN POINT ONE SIX PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SEVEN POINT ONE OH PERCENT SIXTY DAYS SEVEN POINT TWO OH PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT TWO FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN TWO PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS BERNARD LUSKIN FIFTY FIVE YEARS OLD WAS NAMED TO THE NEW POST OF CHIEF EXECUTIVE OFFICER OF JONES INTERACTIVE SYSTEMS INCORPORATED A DIGITAL PUBLISHING AND INTERACTIVE MEDIA UNIT OF THIS TELECOMMUNICATIONS COMPANY MR. LUSKIN WILL ALSO SERVE AS VICE CHAIRMAN OF MIND EXTENSION UNIVERSITY A CABLE EDUCATION CHANNEL CONTROLLED BY JONES INTERNATIONAL MR. LUSKIN WAS FORMERLY PRESIDENT AND CHIEF EXECUTIVE OF PHILIPS INTERACTIVE MEDIA AND PRESIDENT OF PHILIPS MEDIA EDUCATION AND REFERENCE PUBLISHING GROUP BOTH OF WHICH ARE UNITS OF PHILIPS ELECTRONICS N. V. MARUKO INCORPORATED ISN'T A SUBSIDIARY OF KAJIMA CORPORATION AS STATED IN LAST TUESDAY'S INDUSTRY FOCUS ARTICLE ABOUT PURCHASES OF U. S. HOTELS BY ETHNIC CHINESE COMPANIES MICRODYNE CORPORATION ALEXANDRIA VIRGINIA A MAKER OF COMPUTER HARDWARE AND SOFTWARE ISN'T INVOLVED IN A LAWSUIT AGAINST PHOENIX LASER SYSTEMS INCORPORATED YESTERDAY'S SMALL STOCK FOCUS COLUMN INCORRECTLY IDENTIFIED THE PUBLICLY TRADED COMPANY AS BEING INVOLVED IN THE SUIT PHOENIX LASER SYSTEMS SAID CLOSELY HELD MICRODYNE INCORPORATED ESCONDIDO CALIFORNIA IS THE COMPANY INVOLVED IN THE SUIT THE DOLLAR WAS FLAT TO MARGINALLY LOWER IN QUIET TRADING YESTERDAY AS MANY PLAYERS MOVED TO THE SIDELINES AFTER TAKING LOSSES IN THE HECTIC TRADING THAT FOLLOWED THE FEDERAL RESERVE'S FEDERAL FUNDS' RATE INCREASE LAST WEEK TRADERS SAID MARKET UNCERTAINTY OVER THE POSSIBILITY OF MORE RATE BOOSTS BY THE FED AND CONTINUED TRADE TENSIONS WITH JAPAN HAVE PUT A TEMPORARY LID ON FURTHER VOLATILITY IN THE FOREIGN EXCHANGE MARKET BUT THEY ALSO NOTED THAT THE DOLLAR COULD BE HEADED FOR HIGHER GROUND AT LEAST AGAINST EUROPEAN CURRENCIES AS EVIDENCED BY THE RELATIVE LACK OF PROFIT TAKING IN THE FACE OF FRIDAY'S DOLLAR SURGE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FIVE NINE OH MARKS UP SLIGHTLY FROM ONE POINT SEVEN FIVE EIGHT FIVE MARKS LATE FRIDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED EIGHT POINT SEVEN OH YEN DOWN FROM ONE HUNDRED NINE POINT THREE OH YEN STERLING WAS TRADING AT ONE POINT FOUR EIGHT TWO FIVE DOLLARS UP FROM ONE POINT FOUR SEVEN SEVEN FIVE DOLLARS ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED EIGHT POINT SIX OH YEN AND AT ONE POINT SEVEN FIVE EIGHT THREE MARKS QUOTE THERE WAS A LOT OF CARNAGE ON FRIDAY QUOTE SAID THOMAS BENFER DIRECTOR OF FOREIGN EXCHANGE AT THE BANK OF MONTREAL A LOT OF OPERATORS GOT CAUGHT IN THE FED'S MOVE AND WERE MAINTAINING A LOW PROFILE YESTERDAY MR.BBENFER SAID TRADERS ARE STILL TRYING TO SORT OUT THE IMPLICATIONS OF THE FED'S MOVE TO PUSH UP SHORT TERM INTEREST RATES BY ZERO POINT TWO FIVE PERCENTAGE POINT PARTICULARLY AS IT CAME IN THE FACE OF WEAK U. S. JANUARY EMPLOYMENT DATA THE FACT THAT THE FED HAS TIGHTENED RATES COULD BE AN INDICATION OF FAIRLY STRONG ECONOMIC GROWTH COMING DOWN THE PIKE AND POSSIBLY MORE TIGHTENING BY SUMMER HE ADDED BUT MR. BENFER SAID THE MARKET REMAINS UNCERTAIN WHETHER THE FED'S MOVE WAS A ONE TIME PRE EMPTIVE STRIKE AGAINST INFLATION OR WHETHER IT WAS JUST THE FIRST IN A SERIES OF RATE INCREASES LAWRENCE SUMMERS U. S. TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS APPEARED TO CONDONE MORE RATE BOOSTS TRADERS SAID WHEN HE COMMENTED YESTERDAY THAT THE FED'S DECISION WILL CONTRIBUTE TO A LONG SUSTAINED RECOVERY IN THE U. S. AND SHOULDN'T HURT U. S. COMPETITIVENESS OVERSEAS MEANWHILE THE DOLLAR TRADED IN A TIGHT RANGE AGAINST THE YEN AS U. S. JAPAN TRADE NEGOTIATIONS AGAIN APPEARED TO FLOUNDER PRIOR TO FRIDAY'S SUMMIT BETWEEN JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA AND PRESIDENT CLINTON BANK OF MONTREAL'S MR. BENFER SAID THE DOLLAR YEN FLUCTUATIONS ON COMMENTS BY U. S. OFFICIALS ONCE AGAIN PROVE THAT THE YEN IS A POLITICALLY DRIVEN CURRENCY TRADERS NOTED THE YEN INITIALLY SOFTENED ON COMMENTS BY MR. SUMMERS DISAVOWING U. S. ECONOMIST C. FRED BERGSTEN AN INFLUENTIAL VOICE FOR A STRONG YEN MR. SUMMERS SAID MR. BERGSTEN IS TOTALLY UNCONNECTED TO CLINTON ADMINISTRATION THINKING BUT THE YEN THEN GAINED ON STATEMENTS BY MR. SUMMERS AND COMMERCE SECRETARY RONALD BROWN DECRYING THE PACE OF THE U. S. JAPAN TRADE NEGOTIATIONS AND JAPAN'S RELUCTANCE TO LOWER TRADE BARRIERS ETHNIC CHINESE BUYERS FROM OVERSEAS ARE QUIETLY CHECKING INTO THE U. S. HOTEL INDUSTRY AS JAPANESE INVESTORS CHECK OUT OVER THE PAST SEVERAL YEARS THESE CHINESE BUYERS MOSTLY FROM HONG KONG TAIWAN AND SOUTHEAST ASIA HAVE TAKEN ADVANTAGE OF A SLUMP IN THE U. S. MARKET TO SNAP UP HOTELS AT PRICES FAR BELOW REPLACEMENT COSTS IN SOME CASES THEY ARE BUYING HOTELS FROM JAPANESE INVESTORS WHOSE FINANCIAL TROUBLES HAVE FORCED THEM TO RETREAT FROM THE MARKET THE CHINESE BUYERS HAVE A DIFFERENT APPROACH FROM THE JAPANESE WHO WENT ON A U. S. HOTEL ACQUISITION BINGE IN THE NINETEEN EIGHTIES QUOTE THE CHINESE ARE MORE CAUTIOUS QUOTE SAYS KEVIN MAHONEY OF LODGING CONSULTANT KENNETH LEVENTHAL AND COMPANY OF LOS ANGELES THEY'RE BUYING EXISTING MIDMARKET HOTELS WITH PROVEN CASH FLOW AND THEY'RE PAYING CASH BY CONTRAST THE JAPANESE SPREE WAS MARKED BY INFLATED PRICES LOTS OF DEBT AND A HANDS OFF APPROACH TO MANAGEMENT WITH THE SLUMP OF THE PROPERTY MARKET MANY OF THE JAPANESE ACQUISITIONS IN THE U. S. TURNED INTO FINANCIAL BLACK HOLES FIVE YEARS AGO I WAS SEARCHING TOKYO AND OSAKA FOR INVESTORS FOR U. S. HOTELS SAYS TOM TIMMONS AN INVESTMENT ADVISER FOR THE PROPERTY CONSULTING FIRM VIGERS HONG KONG LIMITED NOW WE ARE LOOKING FOR SELLERS IN JAPAN AND BUYERS IN SOUTHEAST ASIA MANY OF THE NEW BUYERS AMASSED FORTUNES IN OTHER INDUSTRIES BACK HOME IN ASIA OVER THE PAST DECADE NOW THEY ARE SEEKING TO HEDGE THEIR BETS SOME ARE JUST BEGINNING TO DIVERSIFY INTO OFFSHORE INVESTMENTS SAYS MR. TIMMONS THE U. S. IS POLITICALLY STABLE RELATIVE TO OTHER MARKETS AND U. S. REAL ESTATE HAS BEEN IN THE DUMPS FOR THE PAST THREE YEARS WHILE THE BARGAINS LAST ETHNIC CHINESE ARE BUYING EVERYTHING FROM BUDGET MOTELS IN TEXAS TO ALL SUITE HOTELS IN CHICAGO TO HISTORIC PROPERTIES IN NASHVILLE TENNESSEE IN THE PAST TWO YEARS ALONE THEY HAVE SPENT AT LEAST ONE POINT FIVE BILLION DOLLARS ON U. S. HOTELS IN TRANSACTIONS FOR WHICH THE PRICES CAN BE DETERMINED THE REAL FIGURE IS PROBABLY FAR HIGHER THAN THAT MANY SALES AREN'T REGISTERED AS FOREIGN INVESTMENTS OR ARE HANDLED THROUGH INTERMEDIARIES ETHNIC CHINESE HAVE BEEN BIGGER BUYERS RECENTLY THAN EVEN EUROPEANS WHO LONG HAVE BEEN ACTIVE IN THE U. S. SAYS KEN WILSON A BOSTON BASED SENIOR VICE PRESIDENT OF LANDAUER HOSPITALITY ADVISORY GROUP THE NEW ASIAN BUYERS ARE FINDING BARGAINS THAT WOULD HAVE BEEN UNTHINKABLE JUST FIVE OR SIX YEARS AGO TODAY REFLECTING OVERBUILDING THE U. S. SAVINGS AND LOAN CRISIS AND A CUTBACK IN TRAVEL MANY HOTELS ARE ON THE BLOCK AT THIRTY PERCENT TO FORTY PERCENT OF THEIR REPLACEMENT COST CENTRAL PLAZA HOTEL GROUP A PUBLICLY TRADED BANGKOK COMPANY CONTROLLED BY A THAI CHINESE FAMILY LAST SEPTEMBER PURCHASED A NEW ONE HUNDRED SEVENTY EIGHT ROOM HOTEL AT LOS ANGELES INTERNATIONAL AIRPORT FROM THE JAPANESE OWNER DEVELOPER FOR TEN MILLION DOLLARS IN CASH THE JAPANESE COMPANY MARUKO INCORPORATED A SUBSIDIARY OF THE CONSTRUCTION CONCERN KAJIMA CORPORATION HAD SUNK SIXTEEN MILLION DOLLARS INTO THE HOTEL BUT NEVER OPENED IT THE SAME MONTH MUI GROUP A MALAYSIAN CONGLOMERATE HEADED BY AN ETHNIC CHINESE BOUGHT FOR EIGHTEEN MILLION DOLLARS THE THREE HUNDRED ROOM MARRIOTT HOTEL IN HOUSTON ALONG WITH AN ADJACENT OFFICE BUILDING AND PARKING GARAGE MUI SAYS THE REPLACEMENT VALUE FOR THE PROPERTIES IS FIFTY MILLION DOLLARS EVEN COMPANIES FROM MAINLAND CHINA ARE LOOKING AROUND YUKUO TAKENAKA PRESIDENT OF LOS ANGELES BASED TAKENAKA AND COMPANY SAYS HIS INVESTMENT COMPANY'S MAINLAND CLIENTS ARE SEEKING INDIVIDUAL U. S. HOTELS TO PURCHASE AT LEAST ONE MAINLAND CHINESE COMPANY ALREADY HAS TAKEN THE LEAP IN NINETEEN NINETY TWO AIR CHINA THE BEIJING BASED AIRLINE PURCHASED THE ONE HUNDRED FIFTY ROOM RAMADA INN AT SAN FRANCISCO INTERNATIONAL AIRPORT BUT THE BULK OF THE CHINESE BUYERS CONTINUE TO COME FROM HONG KONG AND TAIWAN SAM CHANG A U. S. BASED TAIWANESE WHO REPRESENTS INVESTORS FROM HONG KONG AND TAIWAN IS AN EXAMPLE MR. CHANG AND HIS PARTNERS SINCE NINETEEN NINETY ONE HAVE BOUGHT THIRTEEN HOTELS IN THE NORTHEASTERN U. S. THEIR INVESTMENT VEHICLE ORIENT HOTELS GROUP OF STAMFORD CONNECTICUT SPENT ONE HUNDRED MILLION DOLLARS ON THE ACQUISITIONS HALF IN CASH BUT IN MANY CASES NOT A LOT OF CASH MR. CHANG SAYS THEY PAID FOUR POINT THREE MILLION DOLLARS TO BUY THE THREE HUNDRED EIGHTY ROOM HOLIDAY INN CROWNE PLAZA IN STAMFORD A HOTEL THAT WOULD COST ABOUT THIRTY MILLION DOLLARS TO BUILD TODAY THE CHENG FAMILY OF HONG KONG WHOSE PUBLICLY TRADED NEW WORLD DEVELOPMENT COMPANY ALREADY OWNS RENAISSANCE HOTELS AND RESORTS LAST SUMMER PURCHASED STOUFFER HOTELS AND RESORTS FROM NESTLE S. A. THE THIRTY EIGHT UNIT STOUFFER CHAIN WHICH INCLUDES A BIG CHUNK OF REAL ESTATE WENT FOR MORE THAN ONE BILLION DOLLARS ACCORDING TO A SOURCE CLOSE TO THE CHENGS ANOTHER BIG PLAYER FROM HONG KONG WHARF HOLDINGS LIMITED WHICH ALREADY OWNED THE OMNI HOTELS CHAIN IN THE U. S. HAS GROWN THE PAST TWO YEARS THROUGH PURCHASES OF POSH HOTELS IN BOSTON HOUSTON DALLAS NEW YORK AND CHICAGO OVERSEAS CHINESE ARE EXPECTED TO CONTINUE SHOPPING FOR AT LEAST ANOTHER YEAR OR MORE BUT NOBODY EXPECTS THE CHINESE TO GET CAUGHT UP IN BIDDING FEVER AND OVERPAY WHILE THE U. S. HOTEL BUSINESS REMAINS WEAK THE FUNDAMENTALS ARE LOOKING UP FEWER THAN TWO HUNDRED NEW HOTELS STARTED CONSTRUCTION LAST YEAR COMPARED WITH ONE THOUSAND SIX HUNDRED IN NINETEEN EIGHTY SIX MANAGEMENT CONTRACTS HAVE BECOME MORE ADVANTAGEOUS TO HOTEL OWNERS ROOM RATES AND OCCUPANCY LEVELS ARE CREEPING BACK UP AND BJORN HANSON HEAD OF THE HOSPITALITY PRACTICE AT COOPERS AND LYBRAND PREDICTS THAT THE NEXT COUPLE OF YEARS WILL BE VERY GOOD FOR THE INDUSTRY BUT FOR NOW PURCHASE PRICES REMAIN LOW AND PROFITS ARE OFTEN ILLUSORY JAMES CHOI VICE CHAIRMAN OF RENAISSANCE CONCEDES THAT THE COMPANY HASN'T YET PRODUCED PROFITS FOR NEW WORLD WHICH MADE THE ACQUISITION FOUR YEARS AGO QUOTE BUT THE PAIN HAS BEEN INCURRED QUOTE HE SAYS THERE WILL BE A TURNAROUND WE HAVE BEEN CONTAINING OUR LOSSES LIKEWISE WHARF ISN'T FINDING OMNI A HUGE MONEY SPINNER WHILE THE CHINESE GAIN KUDOS FOR SNIFFING OUT GOOD VALUES AND APPLYING KEEN FINANCIAL CONTROL OVER THEIR INVESTMENTS SOME OBSERVERS QUESTION THEIR EXPERIENCE IN THE U. S. AND IN THE LODGING INDUSTRY I'M SURE THEY WILL BUY AT THE RIGHT PRICE SAYS MR. TAKENAKA THE LOS ANGELES INVESTMENT BANKER BUT WHETHER THEY BUY THE RIGHT PROPERTY IS ANOTHER QUESTION AND WHAT HAPPENS AFTER THE PURCHASE SUCH CONCERNS ARE BEING ADDRESSED THOUGH A FEW MONTHS AGO THE TAIWANESE AMERICAN HOTEL MOTEL CHAMBER OF COMMERCE WAS ESTABLISHED TO HELP TAIWANESE NEW TO THE MARKET LAST APRIL SOME FORMER HILTON INTERNATIONAL EXECUTIVES FORMED A TAIPEI BASED HOTEL MANAGEMENT COMPANY TO WORK WITH ETHNIC CHINESE BUYING HOTELS AND MANY ASIAN INVESTORS SIMPLY BUY LOCAL TALENT AND FORM THEIR OWN MANAGEMENT COMPANIES MR. CHANG SAYS QUOTE I'M THE ONLY ORIENTAL ON THE EXECUTIVE COMMITTEE QUOTE OF HIS ORIENT HOTELS GROUP WHICH EXPECTS TO TURN A PROFIT THIS YEAR HIS GROUP IS CONTINUING TO SHOP FOR MORE PROPERTIES MR. CHANG SAYS HE TELLS BROKERS I DON'T WANT TO BUY ANY MORE HOTELS BUT I DON'T MIND STEALING SOME MARUKO INCORPORATED ISN'T A SUBSIDIARY OF KAJIMA CORPORATION AS STATED IN LAST TUESDAY'S INDUSTRY FOCUS ARTICLE ABOUT PURCHASES OF U. S. HOTELS BY ETHNIC CHINESE COMPANIES BANK HOLDING COMPANY F. AND M. NATIONAL CORPORATION SAID IT AGREED TO ACQUIRE P. N. B. FINANCIAL CORPORATION WARRENTON VIRGINIA FOR FORTY ONE DOLLARS AND FIFTEEN CENTS A SHARE IN F. AND M. STOCK IN A TRANSACTION VALUED AT ABOUT TWENTY ONE MILLION DOLLARS THE TRANSACTION IS SUBJECT TO APPROVAL OF REGULATORY OFFICIALS AND P. N. B. SHAREHOLDERS P. N. B. IS THE HOLDING COMPANY OF PEOPLES NATIONAL BANK WHICH HAD YEAR END TOTAL ASSETS OF NINETY EIGHT POINT ONE MILLION DOLLARS F. AND M. NATIONAL HAD ASSETS OF ONE POINT FOUR BILLION DOLLARS C. P. C. INTERNATIONAL INCORPORATED SAID FOURTH QUARTER NET INCOME ROSE SEVENTY SEVEN PERCENT AFFECTED BY A ONE TIME CHARGE A YEAR EARLIER THE FOOD COMPANY SAID QUARTERLY EARNINGS ROSE TO ONE HUNDRED TWENTY FIVE POINT ONE MILLION DOLLARS OR EIGHTY TWO CENTS A SHARE FROM SEVENTY POINT EIGHT MILLION DOLLARS OR FORTY SIX CENTS A SHARE A YEAR EARLIER THE YEAR EARLIER PERIOD INCLUDED A CHARGE OF FORTY SIX POINT EIGHT MILLION DOLLARS OR THIRTY ONE CENTS A SHARE FROM DISCONTINUED OPERATIONS WITHOUT THE CHARGE THE COMPANY SAID PROFIT WAS UP SIX POINT FOUR PERCENT FOURTH QUARTER SALES DROPPED TWO POINT FOUR PERCENT TO ONE POINT SEVEN FIVE BILLION DOLLARS FROM ONE POINT SEVEN NINE BILLION DOLLARS THE COMPANY SAID SALES WERE AFFECTED BY LOWER VALUES OF EUROPEAN EXCHANGE RATES DESPITE QUOTE GOOD VOLUME IMPROVEMENT QUOTE FOR THE YEAR EARNINGS MORE THAN DOUBLED TO FOUR HUNDRED FIFTY FOUR POINT FIVE MILLION DOLLARS OR TWO DOLLARS AND NINETY FIVE CENTS A SHARE FROM TWO HUNDRED TWENTY THREE POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND FORTY ONE CENTS A SHARE IN NINETEEN NINETY TWO THE EARLIER YEAR INCLUDED TWO HUNDRED SIX POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND THIRTY SEVEN CENTS A SHARE IN ONE TIME CHARGES FOR DISCONTINUED OPERATIONS AND ACCOUNTING ADJUSTMENTS WITHOUT THE CHARGES THE COMPANY SAID PROFIT INCREASED FIVE POINT SIX PERCENT SALES ROSE TWO POINT ONE PERCENT TO SIX POINT SEVEN BILLION DOLLARS FROM SIX POINT SIX BILLION DOLLARS IT'S REASONABLE TO EXPECT THAT C. P. C.'S EARNINGS GROWTH RATES CAN MOVE TOWARD AND INTO THE DOUBLE DIGITS AS THE YEAR PROGRESSES ASSUMING EUROPEAN CURRENCIES WON'T WEAKEN COMPARED WITH LAST YEAR SAID C. R. SHOEMATE C. P. C.'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER GEOTEK INDUSTRIES MONTVALE N. J. AND FINANCIER GEORGE SOROS SAID THEY AGREED TO ACQUIRE A THIRTY PERCENT INTEREST IN A MEXICAN WIRELESS COMMUNICATIONS COMPANY FOR ABOUT TWENTY FOUR MILLION DOLLARS MR. SOROS AND GEOTEK ALSO A WIRELESS COMMUNICATIONS COMPANY WILL PAY TWENTY MILLION DOLLARS IN CASH FOR RADIO CEL S. A. DE C. V. IN ADDITION GEOTEK WILL ISSUE THE MEXICAN COMPANY ABOUT TWO HUNDRED SEVENTY THOUSAND SHARES OF COMMON STOCK AND OFFER IT SOME OF GEOTEK'S TECHNOLOGY RADIO CEL HAS A LICENSE TO PROVIDE WIRELESS COMMUNICATIONS SERVICE IN MEXICO CITY MONTERREY GUADALAJARA AND OTHER METROPOLITAN AREAS ADVANCED MICRO DEVICES INCORPORATED SAID IT REACHED AN AGREEMENT WITH DIGITAL EQUIPMENT CORPORATION UNDER WHICH DIGITAL WILL HELP IT PRODUCE FOUR EIGHT SIX MICROCHIPS DIGITAL WILL PRODUCE WAFERS AT ITS FACILITY IN SOUTH QUEENSFERRY SCOTLAND THAT WILL BE USED BY ADVANCED MICRO TO MEET GROWING DEMAND FOR ITS FOUR EIGHT SIX CHIPS THE COMPANY SAID ADVANCED MICRO MAKES CHIPS THAT ARE COMPATIBLE WITH INTEL CORPORATION'S FLAGSHIP FOUR EIGHT SIX CHIPS USED IN TODAY'S MOST POPULAR PERSONAL COMPUTERS ADVANCED MICRO IS EMBROILED IN A SERIES OF LEGAL DISPUTES WITH INTEL INCLUDING THE RETRIAL OF A COPYRIGHT INFRINGEMENT LAWSUIT FILED BY INTEL WHICH ALLEGES A. M. D. HAS ILLEGALLY COPIED ITS CHIPS INITIAL SHIPMENTS OF ADVANCED MICRO FOUR EIGHT SIX CHIPS MADE FROM WAFERS PRODUCED BY DIGITAL ARE EXPECTED IN THE FOURTH QUARTER BY NINETEEN NINETY FIVE THE COMPANY EXPECTS TO BE PRODUCING TWO MILLION UNITS A YEAR AS A RESULT OF THE AGREEMENT WITH DIGITAL THE AGREEMENT THE FIRST OF ITS KIND FOR A. M. D.'S MICROPROCCESSOR BUSINESS IS TO LAST TWO YEARS WITH AN OPTION FOR AN EXTENSION AT THE END OF THAT PERIOD AN A. M. D. SPOKESMAN SAID DEMAND FOR THE COMPANY'S FOUR EIGHT SIX CHIPS EXCEEDS THE FOUR MILLION UNITS A YEAR IT CURRENTLY PRODUCES THE COMPANY IS BUILDING A FACTORY IN TEXAS THAT ISN'T EXPECTED TO BE IN VOLUME PRODUCTION UNTIL THE END OF NEXT YEAR CALL IT RONALD REAGAN'S REVENGE THE WHOPPING DEFICIT HE LEFT BEHIND TOGETHER WITH BUSH ERA CAPS ON FEDERAL SPENDING HAS FORCED BILL CLINTON TO ADOPT MANY OF HIS PREDECESSORS' SPENDING CUTS TO PAY FOR WATERED DOWN DEMOCRATIC SPENDING INCREASES THE RESULT IS A ONE POINT FIVE TRILLION DOLLAR BUDGET THAT IN THE MIDST OF ONE OF THE COLDEST WINTERS IN DECADES CALLS FOR SPENDING FORTY PERCENT LESS NEXT FISCAL YEAR THAN THE GOVERNMENT IS NOW SPENDING TO HELP POOR PEOPLE PAY HEATING BILLS THE PROPOSED BUDGET ALSO WHACKS TWENTY FIVE PERCENT FROM SUBSIDIES FOR URBAN TRANSIT SYSTEMS IT GORES A PROGRAM TO RENOVATE DECREPIT HOUSING PROJECTS AT THE SAME TIME MR. CLINTON SEEKS EIGHTY PERCENT MORE MONEY FOR THE CENTERPIECE OF HIS INDUSTRIAL POLICY THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY HE ASKS FOR TWENTY FIVE PERCENT MORE FOR LEGAL SERVICES FOR THE POOR AND HE PROPOSES TO SUBSTANTIALLY INCREASE SPENDING ON TRAINING PROGRAMS FOR DISLOCATED WORKERS BUT AS MR. CLINTON NOTED IN HIS INTRODUCTION TO THE BUDGET QUOTE EXCEPT IN EMERGENCIES WE CANNOT SPEND AN ADDITIONAL DIME ON ANY PROGRAM UNLESS WE CUT IT FROM ANOTHER PART OF THE BUDGET QUOTE A DEMOCRAT WITH AMBITIOUS PLANS TO SPEND MORE ON EDUCATION TRAINING TECHNOLOGY PUBLIC HEALTH AND INFRASTRUCTURE ARRIVES AT THE WHITE HOUSE AND FINDS THERE ISN'T ANY WAY HE CAN SPEND MORE WITHOUT SPENDING LESS ON THE VERY PROGRAMS THAT DEMOCRATS TRIED TO PROTECT FROM REPUBLICAN PRESIDENTS FOR TWELVE YEARS YOU HAVE TO FIND IT ELSEWHERE AND THAT ELSEWHERE IS THE HARD PART SAYS BUDGET DIRECTOR LEON PANETTA YOU CAN SAY IT'S NOT A HIGH PRIORITY PROGRAM BUT TO SOME MEMBER OF CONGRESS OR CONSTITUENCY IT IS THEIR HIGH PRIORITY MR. CLINTON'S BUDGET CONCENTRATES ON HIS PLANS TO SHIFT AROUND THE HALF TRILLION DOLLARS THAT CONGRESS APPROPRIATES ANNUALLY TO COVER EVERYTHING FROM BUILDING SUBMARINES TO PAYING SECRET SERVICE AGENTS IT IS THESE OUTLAYS AS OPPOSED TO SPENDING ON BENEFITS SUCH AS SOCIAL SECURITY AND MEDICARE THAT IS SUBJECT TO SPENDING CAPS CODIFIED BY CONGRESS IN RECENT YEARS NOT COUNTING EMERGENCIES SUCH AS THE CALIFORNIA EARTHQUAKE THE SPENDING CAP LAWS FORCE THE GOVERNMENT TO SPEND SEVEN POINT SEVEN BILLION DOLLARS LESS FOR THESE PURPOSES NEXT YEAR THE FIRST SUCH DECLINE SINCE NINETEEN SIXTY NINE THESE AREN'T THE KIND OF CUTS WHERE YOU END UP SPENDING MORE MONEY MR. CLINTON SAID REFERRING TO THE STANDARD WASHINGTON PRACTICE OF LABELING AS CUTS WHAT ARE MERELY REDUCTIONS IN PROJECTED INCREASES THESE ARE TRUE CUTS WHERE YOU ACTUALLY SPEND LESS MR. CLINTON'S CHALLENGE IS TO CONVINCE CONGRESS AND THE PUBLIC THAT THIS DEMOCRAT CAN CUT WHILE STILL CARING HE HAS FRAMED THE BUDGET AS A SERIES OF CHOICES WHILE CUTTING FROM PROGRAMS FOR THE POOR HE PROMISES TO BETTER TARGET THE REMAINING RESOURCES HE WANTS TO SPEND LESS TO SUBSIDIZE TODAY'S CONSUMPTION SUCH AS AID TO URBAN BUS LINES AND MORE ON INVESTMENTS FOR TOMORROW SUCH AS HIGHWAYS MR. CLINTON EVEN HAD TO CUT FROM HIS OWN INVESTMENT AGENDA OF A YEAR AGO HIGH SPEED RAIL ONCE CONCEIVED AS A BILLION DOLLAR PROGRAM IS A SHADOW OF ITS FORMER SELF IN THE NEW BUDGET AND THE CUTS IN SPENDING ON PUBLIC HOUSING ARE AT ODDS WITH HIS CAMPAIGN PROMISES LAST YEAR MR. CLINTON TRIED TO AVOID SPENDING CAPS WITH HIS STIMULUS SPENDING PLAN AND A PLAN TO RAISE THE CAPS A BIT WHEN BOTH THOSE MOVES FAILED HE MANAGED TO SQUEEZE THE DEFENSE BUDGET THAT MR. BUSH LEFT BEHIND TO FUND DOMESTIC SPENDING NEITHER WAS AN OPTION THIS YEAR ADJUSTED FOR INFLATION NEXT YEAR'S DEFENSE BUDGET WILL BE THE SMALLEST SINCE NINETEEN EIGHTY ONE HE HAD TWO CHOICES SAYS ALLEN SCHICK A UNIVERSITY OF MARYLAND PROFESSOR AND BUDGET EXPERT QUOTE HE COULD KNOCK OUT A COUPLE OF BIG PROGRAMS HIGH VISIBILITY BIG IMPACT TWENTY FIVE BILLION DOLLARS OVER FIVE YEARS OR HE COULD KNOCK OUT LOTS OF TINY PROGRAMS AT FIRST THE WHITE HOUSE BUDGET OFFICE LEANED TOWARD THE FIRST OPTION SUGGESTING FOR INSTANCE THAT THE PRESIDENT ELIMINATE SUBSIDIES TO URBAN TRANSIT SYSTEMS AND THE LOW INCOME HEATING ASSISTANCE PROGRAM BUT WITH AN EYE TOWARD WHAT WAS MOST LIKELY TO SUCCEED ON CAPITOL HILL MR. CLINTON OPTED FOR THE SECOND THE BIG WINNERS ARE THE DEPARTMENTS OF JUSTICE COMMERCE EDUCATION AND TRANSPORTATION WHICH OVERSEE MANY OF THE INVESTMENT PROGRAMS THAT ARE MR. CLINTON'S PRIORITIES AND HIS NEWFOUND ENTHUSIASM FOR SPENDING HEAVILY TO FIGHT CRIME THE BIGGEST LOSERS INCLUDE THE DEPARTMENTS OF ENERGY IN PART BECAUSE SOME OF ITS BUDGET GOES FOR NUCLEAR WEAPONS AGRICULTURE AND STATE WE'VE SEEN MOST OF THE PROPOSED CUTS BEFORE REPUBLICAN SENATE LEADER BOB DOLE OF KANSAS SAID YESTERDAY BUT CONGRESSIONAL DEMOCRATS REFUSED TO GO ALONG WHEN A REPUBLICAN ADMINISTRATION WIELDED THE BUDGET KNIFE THIS IS NOT A SOMETHING FOR EVERYONE BUDGET EXERCISE ADDS REPRESENTATIVE TIM PENNEY A MINNESOTA DEMOCRAT WHO IS AMONG THE LEADERS OF THE ANTISPENDING CRUSADE IN CONGRESS IT FINALLY ADMITS THAT SOME THINGS ARE MORE IMPORTANT THAN OTHERS SOME OF THE PROPOSED CUTS WON'T HAPPEN ONE EARLY CASUALTY A PROPOSED CUT IN HIGHWAY FUNDS THAT IS BURIED ON PAGE ONE THOUSAND EIGHTEEN OF THE APPENDIX THE PROVISION WOULD SAVE FOUR HUNDRED SIX MILLION DOLLARS BY KILLING HIGHWAY PROJECTS THAT WERE WRITTEN INTO LAW TO SATISFY PARTICULAR MEMBERS OF CONGRESS ANTICIPATING THE PROPOSAL THE FEDERAL HIGHWAY ADMINISTRATION ALERTED STATES NOT TO SPEND ON THE TARGETED PROJECTS BUT WHEN SENATE APPROPRIATIONS CHAIRMAN ROBERT BYRD OF WEST VIRGINIA AND DEMOCRATIC LEADER GEORGE MITCHELL OF MAINE GOT WIND OF THIS THEY LEANED ON MR. PANETTA EVEN THOUGH THE CUTBACK IS PRINTED IN THE BUDGET THE WHITE HOUSE HAS DROPPED THE PLAN AND WILL HAVE TO FIND THE MONEY ELSEWHERE IN ALL MR. CLINTON'S BUDGET PROPOSES TO INCREASE TOTAL GOVERNMENT OUTLAYS BY TWO POINT THREE PERCENT TO ONE POINT FIVE ONE EIGHT TRILLION DOLLARS NOT COUNTING THE COST TO FEDERAL TAXPAYERS OF THE CALIFORNIA EARTHQUAKE IN FISCAL NINETEEN NINETY FIVE WHICH BEGINS OCTOBER FIRST RECEIPTS WOULD RISE EIGHT POINT FOUR PERCENT TO ONE POINT THREE FOUR TWO TRILLION DOLLARS AS THE ECONOMY STRENGTHENS AND NOT COUNTING THE CIGARETTE TAX INCREASE THAT MR. CLINTON PROPOSES TO FINANCE HIS HEALTH CARE INITIATIVE THE ADMINISTRATION PROJECTS THAT THE FEDERAL DEFICIT EXPECTED TO BE TWO HUNDRED THIRTY FOUR POINT EIGHT BILLION DOLLARS THIS YEAR WILL DROP TO ONE HUNDRED SIXTY FIVE POINT ONE BILLION DOLLARS NEXT YEAR IF THE PRESIDENT'S HEALTH CARE PACKAGE PASSES AS PROPOSED OR TO ONE HUNDRED SEVENTY SIX POINT ONE BILLION DOLLARS IF IT DOESN'T EITHER WAY MR. CLINTON BOASTED IN HIS INTRODUCTION TO THE BUDGET IT WILL BE THE FIRST TIME DEFICITS HAVE DECLINED THREE YEARS RUNNING SINCE HARRY TRUMAN OCCUPIED THE OVAL OFFICE BUT UNLESS FEDERAL HEALTH CARE SPENDING IS RESTRAINED THE BUDGET DEFICIT WILL START WIDENING AGAIN IN FISCAL NINETEEN NINETY SEVEN AND TOP TWO HUNDRED BILLION DOLLARS IN NINETEEN NINETY NINE THE WHITE HOUSE BUDGET OFFICE SAID THE ADMINISTRATION PROJECTS THAT IF THE PRESIDENT'S HEALTH PLAN IS ADOPTED HEALTH CARE SPENDING WILL BE CONTAINED AND THE DEFICIT WILL AMOUNT TO ONE HUNDRED EIGHTY ONE BILLION DOLLARS IN NINETEEN NINETY NINE UNLIKE PAST PRESIDENTS MR. CLINTON DIDN'T USE THE BUDGET AS THE LAUNCHING PAD FOR THIS YEAR'S AGENDA HIS HEALTH CARE INITIATIVE WAS UNVEILED LAST FALL HIS PLANS FOR WELFARE REFORM AND REVAMPING OF THE SUPERFUND HAZARDOUS WASTE CLEANUP PROGRAM WILL COME LATER THE BUDGET DOES HOWEVER REVEAL THE CHOICES THAT MR. CLINTON WAS FORCED TO MAKE AND WILL TRY TO GET CONGRESS TO ACCEPT HERE ARE SOME EXAMPLES FOR MR. CLINTON AND MANY OF HIS ADVISERS THE WORST PART OF BUDGETING WAS DECIDING WHICH ANTIPOVERTY PROGRAMS TO CUT TO MAKE ROOM FOR SPENDING ON HIGHER PRIORITY PROGRAMS THE FAVORED PROJECTS INCLUDE THE HEAD START PROGRAM FOR LOW INCOME PRESCHOOLERS UP TWENTY ONE PERCENT IN SPENDING AUTHORITY A PROGRAM THAT ALSO FOUND FAVOR IN BUSH BUDGETS FEDERAL AID TO PUBLIC SCHOOLS WITH LOTS OF POOR PUPILS UP TEN PERCENT AND AID FOR THE HOMELESS UP FIFTY TWO PERCENT THE BIG LOSERS WERE FEDERAL SPENDING TO MODERNIZE PUBLIC HOUSING DOWN FOURTEEN PERCENT BUILDING HOUSING FOR THE ELDERLY DOWN EIGHTY SEVEN PERCENT A PROGRAM OF HOUSING GRANTS THAT MR. CLINTON TRIED TO INCREASE LAST YEAR DOWN TWENTY ONE PERCENT AND THE LOW INCOME HEATING ASSISTANCE PROGRAM LIHEAP QUOTE THE BIGGEST PROBLEM IN ALL THIS QUOTE SAYS BUDGET DIRECTOR PANETTA QUOTE IS THE PERCEPTION THAT BY QUESTIONING THESE PROGRAMS WE ARE NOT AS COMMITTED TO THESE PEOPLE THAT IS NOT THE CASE THIS WAS CLEAREST IN THE PAINFUL DEBATE OVER PUBLIC HOUSING HOUSING SECRETARY HENRY CISNEROS A FORMER SAN ANTONIO MAYOR SHOWED UP WITH EXTENSIVE CHARTS TO ARGUE FOR MORE MONEY AND MADE THE POLITICAL ARGUMENT THAT THE MONEY WAS A MAJOR SIGN OF CONCERN FOR PUBLIC HOUSING TENANTS SOME OF THE NATION'S POOREST PEOPLE BUT THE PRESIDENT DECIDED LIKE REPUBLICANS BEFORE HIM TO INCREASE SPENDING ON VOUCHERS THAT HELP THE POOR RENT PRIVATE HOUSING THE WHITE HOUSE ADDS THAT BILLIONS OF DOLLARS OF UNSPENT PUBLIC HOUSING MONEY ARE IN THE PIPELINE LIHEAP WHICH BEGAN AFTER THE ENERGY PRICE INCREASES OF THE NINETEEN SEVENTIES IS A PROGRAM THAT HAS OUTGROWN THE ORIGINAL INTENTIONS AND IS SORELY IN NEED OF REINVENTING ADMINISTRATION OFFICIALS SAY THE PROGRAM WAS ONCE TARGETED TO THE COLD NORTHEAST BUT THE WHITE HOUSE ARGUES THAT THE SPENDING FORMULA WRITTEN INTO LAW SENDS MONEY WHERE IT ISN'T NEEDED IRONICALLY IT WAS SOUTHERNERS SUCH AS NOW TREASURY SECRETARY LLOYD BENTSEN WHO FORCED THE CHANGE BUT EVEN ADMINISTRATION OFFICIALS CONCEDE THAT AFTER JANUARY'S FRIGID TEMPERATURES IN MUCH OF THE COUNTRY THIS PROPOSED CUT FACES RESISTANCE IN CONGRESS A LOT OF GOOD PROGRAMS GOT PITTED AGAINST ONE ANOTHER COMPLAINS MEG POWER OF THE NATIONAL COMMUNITY ACTION FOUNDATION WHICH REPRESENTS LOCAL GROUPS THAT DISTRIBUTE LIHEAP FUNDS IT WAS A STRANGE CHOICE FOR THIS ADMINISTRATION WHICH IS SO COMMITTED TO IMPROVING THE LIVES OF LOW INCOME CHILDREN MR. CLINTON HAS NOW STATED HIS PRIORITIES CONGRESS WILL HAVE ITS OWN THE BUDGET DEBATE WILL PLAY OUT IN THE HOUSE AND SENATE APPROPRIATIONS COMMITTEES WHICH HAVE IMMENSE DISCRETION IN ALLOCATING FUNDS BY CHANGING THE ALLOCATION AMONG THE VARIOUS SUBCOMMITTEES EACH OF WHICH IS RESPONSIBLE FOR SETTING THE SPENDING LEVELS FOR A PARTICULAR PROGRAM THE COMMITTEE LEADERSHIP CAN TURN THE TABLES AND IN EFFECT PIT THE PRESIDENT'S PROGRAMS AGAINST ONE ANOTHER TAKE THE HOUSE AND SENATE SUBCOMMITTEES FOR STATE JUSTICE AND COMMERCE THE PRESIDENT'S BUDGET WOULD GIVE IT AN EIGHTEEN POINT SIX PERCENT INCREASE IN SPENDING AUTHORITY A REFLECTION OF MR. CLINTON'S DESIRE BOTH TO HELP CITIES HIRE THOUSANDS OF NEW POLICE OFFICERS AND TO SPUR DEVELOPMENT OF NEW CIVILIAN TECHNOLOGIES BUT HIS NEW SPENDING DEPENDS ON THE PANEL'S GOING ALONG WITH HIS PLAN TO KILL DOZENS OF SMALL COMMERCE DEPARTMENT PROJECTS INVOLVING EVERYTHING FROM GREAT LAKES ZEBRA MUSSELS TO COLUMBIA RIVER HATCHERIES A SUBPLOT INVOLVES THE COMPETITION BETWEEN THE COMMERCE DEPARTMENT AND THE ENERGY DEPARTMENT'S OLDER NATIONAL LABORATORIES WHICH ARE LOOKING FOR A NEW MISSION NOW THAT THE END OF THE COLD WAR HAS WOUND DOWN NUCLEAR WEAPONS RESEARCH SANDIA LABORATORY IN NEW MEXICO FOR EXAMPLE HAS TURNED ITS ENGINEERING TALENTS TOWARD BATTERY RESEARCH IMPORTANT TO AUTO MAKERS BUT MR. CLINTON WOULD GIVE IT ONLY A TWO PERCENT INCREASE NEXT YEAR A FRACTION OF THE INCREASE PROPOSED FOR THE ADMINISTRATION'S NEW DARLING THE COMMERCE'S NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY KNOWN AS NIST NIST'S BUDGET GREW THIRTY FIVE PERCENT IN MR. CLINTON'S FIRST YEAR AND HE IS ASKING FOR ANOTHER EIGHTY PERCENT RISE FOR NEXT YEAR LIFTING IT TO NEARLY ONE BILLION DOLLARS NIST DIRECTOR ARATI PRABHAKAR BRINGS NOT ONLY TECHNICAL EXPERTISE BUT TIES TO PENTAGON RESEARCH AGENCIES WHICH ALLOW HER AGENCY TO SHARE THE GROWING DEFENSE CONVERSION BUDGET SENATOR ERNEST HOLLINGS A SOUTH CAROLINA DEMOCRAT WHO IS THE COMMERCE SUBCOMMITTEE CHAIRMAN IS A READY PARTNER BUT THE NATIONAL LABS ARE A MAJOR EMPLOYER IN NEW MEXICO HOME OF SENATOR PETE DOMENICI THE SENIOR REPUBLICAN ON BOTH THIS SUBCOMMITTEE AND THE SENATE BUDGET COMMITTEE MR. DOMENICI HAS LONG PROTECTED THE LABS WORRIED ABOUT NIST'S THREAT TO THE LABS HE MOVED LAST YEAR TO THE RANKING SPOT NEXT TO MR. HOLLINGS SINCE HIS CAMPAIGN DAYS MR. CLINTON HAS HAMMERED HOME THE MESSAGE THAT THE GOVERNMENT MUST INVEST MORE RAISING SPENDING THAT PAYS OFF IN THE FUTURE ONE EXAMPLE IS HIS INSISTENCE THAT HIS BUDGET OFFICE DIVERT MORE MONEY THAN PLANNED TO THE TRANSPORTATION DEPARTMENT TO FINANCE HIGHWAYS AND OTHER CONSTRUCTION IN A ZERO SUM GAME THE COROLLARY OF INCREASED INVESTMENT SPENDING IS THAT SPENDING ON CONSUMPTION THE SORT OF SPENDING THAT MAKES LIFE BETTER TODAY MUST BE CUT THE BIGGEST CONSUMPTION LINE IN THE FEDERAL BUDGET IS SOCIAL SECURITY BENEFITS BUT MR. CLINTON HASN'T ANY INTEREST IN TOUCHING THEM BUT IN A SERIES OF TELLING SMALL DECISIONS HE DID TRY TO REORIENT FEDERAL SPENDING TOWARD INVESTMENTS A CASE IN POINT IS THE POPULAR EIGHT HUNDRED MILLION DOLLARS SUBSIDY FOR URBAN TRANSIT SYSTEMS A CLEAR EXAMPLE OF FEDERAL SPENDING ON CONSUMPTION AND A PROGRAM ESPECIALLY IMPORTANT TO BUS LINES IN SMALL CITIES MR. CLINTON WOULD SLASH THIS BY TWENTY FIVE PERCENT ROD DIRIDON CHAIRMAN OF THE AMERICAN PUBLIC TRANSIT ASSOCIATION SAYS NINE OF TEN SURVEYED MEMBERS OF HIS ORGANIZATION SAID THEY WOULD HAVE TO QUOTE INCREASE FARES OR REDUCE SERVICE IN ORDER TO SURVIVE QUOTE AT THE SAME TIME HOWEVER DEPUTY TRANSPORTATION SECRETARY MORTON DOWNEY SAYS THE ADMINISTRATION INCREASED PROPOSED SPENDING ON GRANTS TO HELP LOCAL TRANSIT SYSTEMS BUY NEW EQUIPMENT THE RATIONALE WAS INVESTMENT AS OPPOSED TO CONSUMPTION HE SAYS AS USUAL THERE IS MORE TO THIS THAN MEETS THE EYE BUDGET OFFICIALS NOTE THAT APPROPRIATIONS FOR OPERATING SUBSIDIES TEND TO BE SPENT RIGHT AWAY A PROBLEM BECAUSE OF THE STRINGENT CEILINGS ON FEDERAL SPENDING APPROPRIATIONS FOR CAPITAL INVESTMENT TEND TO BE SPENT IN FUTURE YEARS AND COUNT AGAINST SPENDING CEILINGS IN THOSE YEARS BUT THAT'S A PROBLEM FOR NEXT YEAR'S BUDGET CITING A PROLONGED PRICE WAR IN THE MARKET FOR COMPUTER KEYBOARDS KEY TRONIC CORPORATION REPORTED A SECOND QUARTER LOSS AND SAID IT EXPECTS TO POST LOSSES FOR THE REST OF ITS FISCAL YEAR THE COMPUTER KEYBOARD MAKER BASED IN SPOKANE WASHINGTON SAID IT POSTED A NET LOSS OF TWO POINT THREE MILLION DOLLARS OR TWENTY EIGHT CENTS A SHARE FOR THE QUARTER ENDED JANUARY FIRST THAT COMPARES WITH YEAR EARLIER NET INCOME OF ONE POINT FOUR MILLION DOLLARS OR SIXTEEN CENTS A SHARE SALES ROSE TWENTY SEVEN PERCENT TO FORTY ONE POINT THREE MILLION DOLLARS FROM THIRTY TWO POINT SIX MILLION DOLLARS A YEAR EARLIER FOR THE SIX MONTHS KEY TRONIC POSTED A LOSS OF THREE POINT NINE MILLION DOLLARS OR FORTY EIGHT CENTS A SHARE ON SALES OF SEVENTY SEVEN POINT THREE MILLION DOLLARS A GAIN FROM AN ACCOUNTING CHANGE RESULTED IN FIRST HALF NET INCOME OF FOUR POINT EIGHT MILLION DOLLARS OR FIFTY FIVE CENTS A SHARE IN THE YEAR EARLIER PERIOD THE COMPANY POSTED NET INCOME OF TWO POINT THREE MILLION DOLLARS OR TWENTY SEVEN CENTS A SHARE ON SALES OF SIXTY FOUR POINT TWO MILLION DOLLARS CONSUMER COMPLAINTS ABOUT AIRLINE SERVICE DROPPED THIRTEEN PERCENT LAST YEAR EVEN THOUGH FLIGHT DELAYS INCREASED SLIGHTLY THE TRANSPORTATION DEPARTMENT SAID OF THE FIVE THOUSAND NINE HUNDRED EIGHTY FIVE COMPLAINTS THE TRANSPORTATION DEPARTMENT RECEIVED LAST YEAR THE BIGGEST CAUSE WAS FLIGHTS BEING DELAYED OR CANCELED IN ADDITION THE NUMBER OF COMPLAINTS FOR LOST OR MISHANDLED LUGGAGE DROPPED TO FIVE POINT SIX PER ONE THOUSAND CUSTOMERS FROM FIVE POINT EIGHT SEVEN COMPLAINTS IN NINETEEN NINETY TWO AS IN NINETEEN NINETY TWO SOUTHWEST AIRLINES HAD THE LEAST COMPLAINTS PER PASSENGER AMONG LARGE AIRLINES FOLLOWED BY DELTA AIR LINES AND NORTHWEST AIRLINES WHILE TRANS WORLD AIRLINES HAD THE MOST CONTINENTAL AIRLINES WAS THE ONLY AIRLINE WHOSE COMPLAINT PERFORMANCE WORSENED IT HAD SIX HUNDRED EIGHT COMPLAINTS LAST YEAR COMPARED WITH FOUR HUNDRED FIFTY FIVE THE PREVIOUS YEAR LARGE AIRLINES POSTED AN ON TIME ARRIVAL RATE OF EIGHTY ONE POINT SIX PERCENT IN NINETEEN NINETY THREE WITH SOUTHWEST POSTING THE BEST RATE EIGHTY NINE POINT SEVEN PERCENT AND DELTA BRINGING UP THE REAR AT SEVENTY SIX POINT SEVEN PERCENT THE TRANSPORTATION DEPARTMENT SAID THE ON TIME RATES EXCLUDE DELAYS CAUSED BY MECHANICAL PROBLEMS JOHN SCULLEY WHO ASTONISHED THE HIGH TECH INDUSTRY IN OCTOBER WHEN HE JOINED A TINY WIRELESS TECHNOLOGY COMPANY THAT HAD NO PROFITS NO PROFILE AND A CHECKERED PAST JOLTED THE INDUSTRY AGAIN YESTERDAY BY ABRUPTLY QUITTING HIS NEW JOB IN RESIGNING FROM SPECTRUM INFORMATION TECHNOLOGIES INCORPORATED THE FORMER CHAIRMAN OF APPLE COMPUTER INCORPORATED SUMMARILY DROPPED WHAT HE HAD CALLED QUOTE A LITTLE GEM THAT FELL IN MY LAP QUOTE HE HAS BEEN FORCED TO ADMIT THAT HE ACCEPTED A MULTIMILLION DOLLAR PAY PACKAGE WITHOUT KNOWING THE COMPANY WAS UNDER FEDERAL INVESTIGATION HE HAS ALL BUT GIVEN UP HIS GRAND DESIGN OF LEADING THE WIRELESS REVOLUTION AND HIS SHINING REPUTATION AS A HIGH TECH VISIONARY HAS DIMMED IN MR. SCULLEY'S WAKE SPECTRUM WAS FORCED TO RESTATE RECENT FINANCIAL RESULTS YESTERDAY TURNING SLENDER REPORTED PROFITS INTO LOSSES THE COMPANY'S STOCK PRICE CRASHED FALLING TO TWO DOLLARS AND TWENTY FIVE CENTS FROM FIVE DOLLARS AND FIFTY SIX CENTS ON FRIDAY MR. SCULLEY FILED SUIT AGAINST THE SPECTRUM EXECUTIVE WHO RECRUITED HIM IT CHARGES SPECTRUM PRESIDENT PETER CASERTA WITH FRAUDULENT MISREPRESENTATIONS AND ALLEGES WHAT AMOUNTS TO A PLOT TO REAP PROFITS ON STOCK SALES AFTER MR. SCULLEY'S HIRING SENT SPECTRUM SHARES SOARING THE COMPANY RESPONDED IN A PRESS RELEASE DENYING ANY MISREPRESENTATION AND SAYING MR. SCULLEY HAD BEEN FULLY AWARE OF THE CIRCUMSTANCES THAT HE NOW CITES AS HIS REASONS FOR HIS DEPARTURE ONLY TWO WEEKS AGO MR. SCULLEY DENIED NEWS REPORTS THAT SPECTRUM WAS BEING INVESTIGATED BY THE SECURITIES AND EXCHANGE COMMISSION WHICH TURNED OUT TO BE TRUE AND THAT HE PLANNED TO RESIGN SPECTRUM LATER CONFIRMED THAT AN S. E. C. PROBE HAD BEEN GOING ON SINCE MAY LEADING SOME INDUSTRY EXECUTIVES TO WONDER WHETHER MR. SCULLEY HAD BEEN DUPED ASSOCIATES MAINTAIN THAT THE ONETIME PEPSICO INCORPORATED MARKETER TURNED TECHNOLOGY GURU WAS STARTLED BY WORD OF THE S. E. C. PROBE AND IN PARTICULAR BY THE FACT THAT MR. CASERTA HADN'T DISCLOSED IT HE WAS FURTHER ALARMED LAST WEEK WHEN NEW AUDITORS BROUGHT IN AT HIS INSISTENCE AFTER SPECTRUM FIRED THE PREVIOUS FIRM IN A DISPUTE OVER ACCOUNTING PRACTICES SAID TWO QUARTERS OF RESULTS SHOULD BE RESTATED TO SHOW LOSSES BUT ASSOCIATES SAY THE LAST STRAW CAME WHEN MR. SCULLEY READ NEWSPAPER REPORTS DETAILING HOW MR. CASERTA AND TWO OTHER TOP SPECTRUM EXECUTIVES HAD EXERCISED STOCK OPTIONS AND IMMEDIATELY SOLD SHARES IN THE WEEKS AFTER MR. SCULLEY WAS HIRED WHILE S. E. C. FILINGS SHOW THE TRIO REAPED MORE THAN THIRTEEN MILLION DOLLARS IN COMBINED PROFITS THE OPTIONS PACKAGE THAT LURED MR. SCULLEY TO THE COMPANY ENDED UP ALL BUT WORTHLESS IN THE NEAR TERM AS SPECTRUM'S STOCK PRICE FELL ON THE NEGATIVE HEADLINES YESTERDAY HE SAID HE WAS GIVING UP THOSE OPTIONS THE TRAVAILS AT SPECTRUM HAVE BEEN A BITTER CULMINATION FOR MR. SCULLEY WHO LEFT A TOP POST AT PEPSI A DECADE AGO AND ROSE TO STARDOM IN THE TECHNOLOGY INDUSTRY LARGELY AFTER OUSTING APPLE FOUNDER STEVEN JOBS AND GUIDING THE COMPANY TO A TENFOLD RISE IN REVENUE BUT MR. SCULLEY EVENTUALLY WAS ALL BUT OUSTED AS APPLE'S CHAIRMAN AS THE COMPANY'S SALES AND PROFITS SOURED HE WAS CRITICIZED FOR CREATING A SWIRL OF HIGH EXPECTATIONS FOR THE APPLE NEWTON THE HAND HELD PERSONAL COMMUNICATOR ONLY TO HAVE IT RUN A YEAR LATE AND GET PUBLICLY TRASHED FOR GLITCHES IN HANDWRITING RECOGNITION SPECTRUM WAS TO BE MR. SCULLEY'S COMEBACK AND HIS VINDICATION HE BECAME INTENSELY INTERESTED AFTER A SPECTRUM TEAM DEMONSTRATED IN A MEETING IN HIS DINING ROOM HOW THE COMPANY'S WIRELESS TECHNOLOGY COULD ENABLE THE NEWTON TO SEND A WIRELESS FAX SOMETHING THE NEWTON COULDN'T DO DESPITE MR. SCULLEY'S OWN PRONOUNCEMENTS WHEN IT WAS UNVEILED LAST YEAR MR. SCULLEY HAD BEEN INTRODUCED TO THE MANHASSET N. Y. CONCERN BY A FELLOW JOGGER AND FRIEND FROM HIS DAYS AT PEPSICO EXHAUSTED BY HIS RANCOROUS SPLIT WITH APPLE LAST YEAR AND EAGER TO PLOT HIS FUTURE OUTSIDE THE GOSSIP MILL IN SILICON VALLEY MR. SCULLEY HAD RETREATED EAST TO HIS HOME IN GREENWICH CONNECTICUT WITH HIS WIFE LEEZY AND THEIR DOGS A SHORT TIME LATER THE JOGGER LYNN PETRONELLA LINKED MR. SCULLEY UP WITH HER FRIEND MR. CASERTA TELLING HIM THAT MR. CASERTA RAN A SMALL LONG ISLAND COMPANY THAT HAD THE SOFTWARE TECHNOLOGY TO MAKE THE NEWTON SEND MESSAGES FLAWLESSLY MR. CASERTA AND A SMALL ENTOURAGE THAT INCLUDED HIS SON PETER CASERTA THE SECOND DEMONSTRATED THE SPECTRUM WARES SITTING AT MR. SCULLEY'S DINING ROOM TABLE MR. CASERTA HAD MR. SCULLEY SCRIBBLE A MESSAGE ON HIS NEWTON TO PETER CASERTA LET'S MAKE SPECTRUM A SUCCESS JOHN SCULLEY MR. SCULLEY THEN PUSHED A BUTTON AND SENT THE MESSAGE OVER THE CELLULAR AIRWAVES TO A FAX MACHINE ELSEWHERE IN MR. SCULLEY'S HOUSE ALMOST IMMEDIATELY MR. SCULLEY AND HIS LAWYERS BEGAN NEGOTIATING WITH MR. CASERTA TO BECOME SPECTRUM'S NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER BY THE TIME HE ANNOUNCED HIS SURPRISING DECISION IN OCTOBER MR. SCULLEY NEVER ONE TO STRIKE A HUMBLE POSE LIKENED HIS MOVE TO THAT OF ANOTHER HIGH PROFILE EXECUTIVE BARRY DILLER MR. DILLER HAD QUIT AS C. E. O. AT FOX INCORPORATED AND TURNED TO HOME SHOPPING COMPANY Q. V. C. NETWORK INCORPORATED LATER EMBARKING ON THE PROTRACTED FIGHT TO ACQUIRE PARAMOUNT COMMUNICATIONS INCORPORATED SPECTRUM WAS TINY BY COMPARISON AND WHILE MR. SCULLEY IS SAID TO HAVE STUDIED SPECTRUM'S PATENTS INTENTLY HE APPARENTLY SPENT LESS EFFORT PORING OVER THE COMPANY'S FINANCES AND ITS CONTROVERSIAL PAST HE FELT GENUINELY DUPED BY CASERTA A SPOKESWOMAN FOR MR. SCULLEY WHO HAS HIRED HIS OWN PUBLIC RELATIONS FIRM IN THIS FIGHT SAID YESTERDAY QUOTE THE S. E. C. PROBE AND THE INSIDER TRADING WERE THE STRAWS THAT BROKE THE CAMEL'S BACK QUOTE IN HIS SUIT FILED IN FEDERAL COURT IN NEW YORK MR. SCULLEY CONTENDS HE WAS DECEIVED BY CASERTA WHOSE APPARENT SHORT TERM GOAL WAS TO REAP HUGE PROFITS BY SELLING LARGE BLOCKS OF SPECTRUM STOCK DRIVEN UP IN VALUE AFTER THE ANNOUNCEMENT THAT MR. SCULLEY WOULD JOIN THE COMPANY THE SUIT SEEKS TEN MILLION DOLLARS IN DAMAGES MR. SCULLEY WAS GIVEN A MILLION DOLLAR SALARY AND OPTIONS TO BUY EIGHTEEN MILLION SHARES OVER FIVE YEARS AT THE EXERCISE PRICE OF SIX POINT ONE TWO FIVE DOLLARS THREE MILLION OF THOSE OPTIONS BECAME EXERCISABLE AFTER THE FIRST WEEK IN OCTOBER THE WEEK BEFORE MR. SCULLEY'S APPOINTMENT WAS ANNOUNCED THAT WOULD HAVE BROUGHT HIM A PROFIT OF AS MUCH AS FIFTEEN MILLION DOLLARS BASED ON THE HIGH POINT OF SPECTRUM'S STOCK ELEVEN POINT ONE TWO FIVE DOLLARS ON THE DAY OF THE SCULLEY ANNOUNCEMENT A TRIO OF TOP SPECTRUM INSIDERS WENT FOR THE QUICK PROFIT S. E. C. FILINGS SHOW MR. CASERTA SOLD JUST UNDER HALF OF HIS STAKE EXERCISING OPTIONS TO ACQUIRE ONE MILLION SHARES AT ONE DOLLAR AND THIRTEEN CENTS APIECE AND THEN SELLING THEM AT AN AVERAGE NINE DOLLARS AND FIFTY CENTS APIECE IN MID NOVEMBER FOR A PRETAX PROFIT OF EIGHT POINT FOUR MILLION DOLLARS ALBERT PANICO A VICE PRESIDENT DUMPED MORE THAN HALF OF HIS HOLDINGS SELLING THREE HUNDRED THIRTY THREE THOUSAND SHARES AT EIGHT DOLLARS AND FIFTY FIVE CENTS APIECE FOR A PRETAX PROFIT OF TWO POINT FIVE MILLION DOLLARS SALVATORE MARINO THE CHIEF FINANCIAL OFFICER CHOPPED HIS HOLDINGS SIXTY THREE PERCENT EXERCISING THREE HUNDRED THOUSAND OPTIONS AT ONE DOLLAR AND THIRTEEN CENTS A SHARE AND SELLING AT AN AVERAGE EIGHT DOLLARS AND SEVENTY ONE CENTS A SHARE FOR A PRETAX PROFIT OF TWO POINT THREE MILLION DOLLARS MR. SCULLEY DIDN'T SELL ANYTHING HIS ANGER IN THE FALLOUT APPEARS MOST DIRECTLY AIMED AT PETER CASERTA INDEED MR. SCULLEY WENT TO GREAT PAINS YESTERDAY TO SINGLE OUT MR. CASERTA AS HIS NEMESIS FILING THE SUIT AGAINST THE SPECTRUM PRESIDENT INDIVIDUALLY WITHOUT SUING THE COMPANY IN A PREPARED STATEMENT BEYOND WHICH MR. SCULLEY WOULDN'T COMMENT HE FURTHERED THAT OBJECTIVE WHILE MY EXPERIENCE WITH PETER CASERTA HAS BEEN TREMENDOUSLY DISAPPOINTING I FEEL OTHERS IN MANAGEMENT ARE TRYING TO DEAL WITH THE CURRENT SITUATION IN A RESPONSIBLE MANNER THAT LED SOME OBSERVERS TO ASK WHETHER MR. SCULLEY MIGHT HAVE TRIED TO BORROW A PAGE FROM HIS HONEYMOON TURNED DIVORCE AT APPLE WHERE HE SUCCEEDED IN WINNING OVER THE BOARD AND OUSTING FOUNDER JOBS SINCE TAKING ON SPECTRUM MR. SCULLEY HAD TOLD SOME CONFIDANTS THAT HE WAS OUT TO CLEAR THE DECKS AND IMPOSE HIS OWN TEAM BUT IT DOESN'T APPEAR HE HAD ANYWHERE NEAR ENOUGH CLOUT TO TRY A SIMILAR OUSTER OF MR. CASERTA FOR ONE THING MR. CASERTA HAD ABSOLUTE CONTROL OVER THE SPECTRUM BOARD IT CONSISTS OF A SMALL HANDFUL OF LOYALISTS MOST OF WHOM WERE APPOINTED BY HIM SOME BOARD MEMBERS SERVE WITH MR. CASERTA ON HIS LOCAL VOLUNTEER FIRE DEPARTMENT THE LATEST ROUND OF TROUBLE ACTUALLY BEGAN LAST MAY MR. CASERTA EBULLIENT OVER SIGNING A PATENT LICENSING AGREEMENT WITH AMERICAN TELEPHONE AND TELEGRAPH COMPANY BOASTED THAT IT WOULD BRING SPECTRUM HUNDREDS OF MILLIONS OF DOLLARS IN ROYALTY PAYMENTS THAT SENT SPECTRUM SHARES SOARING ONLY TO HAVE THEM CRASH A DAY LATER WHEN A. T. AND T. SMACKED DOWN MR. CASERTA BY PUBLICLY COUNTERING THAT THE DEAL WAS AT BEST WORTH A FEW MILLION DOLLARS THAT DAY IN MAY SPECTRUM'S SHARES SET A RECORD FOR VOLUME TRADING ON THE NASDAQ STOCK MARKET SPECTRUM BROKE ITS OWN RECORD YESTERDAY AS ITS SHARES PLUNGED ONCE MORE AS SOME THIRTY FIVE POINT FOUR MILLION SHARES ALMOST HALF OF THE COMPANY'S TOTAL OUTSTANDING COMMON STOCK CHANGED HANDS THE STOCK FELL IN PART YESTERDAY BECAUSE SPECTRUM RESTATED ITS EARNINGS FOR THE PAST TWO QUARTERS INSTEAD OF NET INCOME OF ONE POINT ONE MILLION DOLLARS OR ONE CENT A SHARE WHICH THE COMPANY HAD CLAIMED FOR THE FIRST SIX MONTHS ENDED SEPTEMBER THIRTIETH NINETEEN NINETY THREE THE RESTATEMENT SHOWED A LOSS OF FIVE POINT THREE MILLION DOLLARS OR SEVEN CENTS A SHARE ON LOWER REVENUE BACK AT ITS HIGH BEFORE THE A. T. AND T. DISAVOWAL SPECTRUM SHARES WERE AT A HEALTHY THIRTEEN POINT ONE TWO FIVE DOLLARS THE S. E. C. ULTIMATELY BEGAN PROBING THE MAY CLAIM AND THE SUBSEQUENT STOCK CRASH A PROBE THAT HAS CONTINUED AND THAT THE COMPANY CONFIRMED FOR THE FIRST TIME IN RECENT WEEKS BUT THE COMPANY HAD RACKED UP A RECORD OF AGGRESSIVE PROMOTION EVEN BEFORE THE MAY INCIDENT ITS FORMER CHAIRMAN AND FOUNDER DANA VERRILL WHO WAS PUSHED OUT WHEN MR. SCULLEY JOINED THE COMPANY USED TO TOUR THE COUNTRY COURTING ANALYSTS AND INVESTORS OCCASIONALLY HE GOT HELP FROM GENE R. MORGAN A LOS ANGELES INVESTOR AND LARGE HOLDER OF SPECTRUM STOCK MR. MORGAN A FORMER SPECTRUM BOARD MEMBER REGULARLY PROMOTED SPECTRUM STOCK ON HIS CABLE TELEVISION SHOW CHARTING THE MARKET AT ONE THIRTY SOMETIMES HE HAD MR. VERRILL APPEAR ON THE SHOW TO HELP HIM OUT BY JUNE NINETEEN NINETY ONE MR. MORGAN NOW OFF SPECTRUM'S BOARD WAS HELPING SPECTRUM OVER ANOTHER FINANCIAL HUMP ITS DE LISTING FROM NASDAQ THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN DECEMBER NINETEEN NINETY HAD DELETED SPECTRUM FROM ITS LISTING AFTER THE COMPANY HAD FALLEN BELOW THE MINIMUM CAPITAL AND SURPLUS REQUIRED FOR CONTINUED INCLUSION SPECTRUM'S PUBLIC DOCUMENTS STATE BUT A JUNE NINETEEN NINETY ONE OFFERING THROUGH MR. MORGAN'S INVESTMENT COMPANY GENE MORGAN FINANCIAL BROUGHT SPECTRUM SUFFICIENT CAPITAL AND SURPLUS AND BY APRIL NINETEEN NINETY TWO THE COMPANY WAS RE LISTED STILL SPECTRUM DREW SCANT NOTICE IN THE TELECOMMUNICATIONS INDUSTRY UNTIL MR. CASERTA WHO HAD BEEN ADVISING THE COMPANY ON MANAGEMENT ISSUES AND ON RAISING CAPITAL JOINED UP IN NINETEEN NINETY TWO AN ELEGANT DRESSER WITH A FLAIR FOR EARNEST GAB THE FIFTY YEAR OLD MR. CASERTA HAS BRAGGED IN THE PAST THAT HE WAS A KEY MANAGEMENT ENGINEER ON THE APOLLO SPACE PROGRAM ACTUALLY HE HAS NO COLLEGE DEGREE BUT HOLDS A TWO YEAR CERTIFICATE FROM THE DEFUNCT R. C. A. INSTITUTE OF TECHNOLOGY HE HAD WORKED FOR A NASA SUBCONTRACTOR'S ENGINEERING TEAM IN THE NINETEEN SIXTIES ACCORDING TO A FORMER SPOKESWOMAN FOR SPECTRUM JEAN YOUNG MR. CASERTA WHO HAS DECLINED COMMENT ON HIS TRACK RECORD REVELS IN AN ENGINEERING AND TECHNICAL SERVICES FIRM HE FOUNDED IN THE NINETEEN SEVENTIES WHOSE QUOTE MAJOR PROJECTS WERE THE SPACE SHUTTLE AND THE ALASKAN PIPELINE QUOTE INTERGLOBAL TECHNICAL SERVICES INCORPORATED WAS A SORT OF TEMP AGENCY FOR TECHNICALLY TRAINED PEOPLE INCLUDING ENGINEERS MR. CASERTA AND HIS BROTHER FRANK WHO ACTUALLY MANAGED THE COMPANY SOLD INTERGLOBAL TO C. D. I. CORPORATION IN NINETEEN EIGHTY EIGHT WHICH USED A COUPLE OF INTERGLOBAL OFFICES TO FILL OUT ITS COVERAGE IN THE SOUTHWEST AND CALIFORNIA MR. CASERTA LATER FORMED MANAGEMENT CONSULTING FIRMS CALLED THE CASERTA GROUP AND CASERTA ENTERPRISES INCORPORATED WHICH RAISE CAPITAL FOR SMALL COMPANIES TODAY MR. CASERTA AND HIS MANAGEMENT FIRMS ARE EMBROILED IN A FRACTIOUS LEGAL STRUGGLE WITH A NUMBER OF THESE CLIENTS SUING THEM IN A LOCAL LONG ISLAND COURT FOR FEES FOR SERVICES THAT THE CLIENT COMPANIES CLAIM WERE NEVER RENDERED NOW MR. CASERTA AND SPECTRUM ARE SAYING MR. SCULLEY WAS WELL AWARE OF THE COMPANY'S PROBLEMS WHEN HE ACCEPTED THE GENEROUS PAY PACKAGE AND AGREED TO JOIN THE COMPANY MR. SCULLEY KNOWN FOR HIS OWN AMPLE ABILITIES TO CREATE A VISION AND PROMOTE A NEW PRODUCT PAINTS HIMSELF AS A VICTIM OF MR. CASERTA'S GIFT FOR HYPE MESSRS SCULLEY AND CASERTA DECLINED THROUGH THEIR ATTORNEYS TO COMMENT ON THE PROBLEMS THAT DROVE THEM APART SPECTRUM SAYS IT WAS DISAPPOINTED AND CALLED MR. SCULLEY'S RESIGNATION CLEARLY IN VIOLATION OF HIS EMPLOYMENT AGREEMENT WITH THE COMPANY SAYING IT DISREGARDS HIS RESPONSIBILITIES TO SHAREHOLDERS BUT MR. SCULLEY'S LAWYER ARNOLD BURNS CONTENDS THE EXECUTIVE HAD NO OTHER CHOICE BUT TO QUIT ONCE IT BECAME CLEAR TO HIM THAT MR. CASERTA HAD MISLED HIM JOHN LOOKED MR. CASERTA STRAIGHT IN THE EYE AT THE TIME HE AGREED TO JOIN AND ASKED HIM IF THERE WERE ANY PROBLEMS HE SHOULD KNOW ABOUT MR. BURNS SAYS AND CASERTA TOLD HIM EVERYTHING HAD BEEN SETTLED OVER THE PAST WEEKEND WITH THE S. E. C. DISCLOSURES AND WORD THAT ONE PENDING SHAREHOLDER LAWSUIT WAS BEING EXPANDED AND THAT YET ANOTHER CLASS ACTION SUIT MAY BE FILED AGAINST THE COMPANY MR. SCULLEY DECIDED TO BAIL OUT HIS ATTORNEY QUOTES MR. SCULLEY AS SAYING I CAN'T RUN A RACE WITH THE BURLAP BAG THESE BASTARDS TIED AROUND MY LEGS A NICHE SERVING TINY COMPANIES AND LOWER INCOME PEOPLE DOESN'T SOUND TOO PROFITABLE IN MANAGED HEALTH CARE BUT SOME BELIEVE IT CAN BE WHEN THE TARGET POPULATIONS ARE TIGHTLY KNIT ETHNIC GROUPS AND IF PRESIDENT CLINTON AND CONGRESS WILL ALLOW A MARKET TEST THE PROBLEM IS UNDER REFORM WHITE HOUSE STYLE THERE'D BE LITTLE ROOM LEFT FOR AN H. M. O. LIKE VIVAHEALTH PLAN RECENTLY LICENSED ON THE EAST SIDE OF LOS ANGELES IT'S ONE OF THE FIRST INDEPENDENT ATTEMPTS TO TURN A GAP IN THE HEALTH CARE SYSTEM A BURGEONING NUMBER OF MOSTLY LATINO IMMIGRANTS OUTSIDE THE MAINSTREAM OF U. S. MEDICINE INTO AN OPPORTUNITY RUTH LOPEZ WILLIAMS IS THE C. E. O. OF THIS STARTUP THE SAME POST SHE'S HELD FOR THE PAST THIRTEEN YEARS AT A CANCER TREATMENT OPERATION IN THE AREA FOUNDED BY HER BROTHER DOCTOR JOHN THROPAY WHO IS ALSO CHAIRMAN OF VIVAHEALTH LIKE THE NASCENT H. M. O. THE CANCER FACILITIES ARE AIMED AT BRIDGING A CULTURAL GAP MS. LOPEZ WILLIAMS SAYS VIVAHEALTH HAS ASSEMBLED ONE THOUSAND DOCTORS AND OTHER MEDICAL PROVIDERS MANY OF THEM EQUIPPED TO SPEAK SPANISH BUT LANGUAGE ISN'T THE ONLY MAJOR ACCOMMODATION REASONABLE DEFERENCE TO CULTURAL NORMS SUCH AS THE WIDESPREAD USE OF HOME REMEDIES IS EXPECTED OF TYPICALLY WARY M. D.S WITH SUCH SENSITIVITY VIVAHEALTH MAY BE ABLE NOT ONLY TO EXPAND THE MARKET BUT TO HEAD OFF ENTRENCHED PLANS SUCH AS KAISER THAT ARE GRASPING FOR A LARGER LATINO SHARE MS. LOPEZ WILLIAMS SEES THE PROCLIVITIES OF HER PATIENT BASE NOT AS QUIRKS BUT STRENGTHS A STRONG TRADITION OF BREASTFEEDING FOR EXAMPLE IS GOOD FOR LATINO BABIES AS IS THE SOCIAL CONVENTION AGAINST CIGARETTE AND ALCOHOL USE BY THEIR MOTHERS IN THE EXTENDED FAMILIES COMMON TO ETHNICS IT'S MORE LIKELY SOMEONE CAN GET GOOD OL' T. L. C. FROM A RELATIVE ACCORDING TO DAVID HAYES BAUTISTA A U. C. L. A. MEDICAL RESEARCHER WHO IS ADVISING VIVAHEALTH LATINOS IN H. M. O.S SPEND A THIRD LESS TIME IN THE HOSPITAL THAN OTHERS IN THE PLANS SIMPLY PUT IMMIGRANT GROUPS CAN PROVE TO BE BETTER RISKS THAN THE GENERAL POPULATION THE MODEL HOLDS FOR LATINOS BUT ALSO MS. LOPEZ WILLIAMS SAYS QUOTE FOR ANY TRUE COMMUNITY PEOPLE THAT WORK LIVE AND WORSHIP IN THE SAME DEMOGRAPHIC AREA AND HAVE FAMILY QUOTE AS A RESULT THEY RELY ON EACH OTHER AND THAT ACTS TO CURB THE OVERALL COSTS THEY IMPOSE ON THE MEDICAL SYSTEM ALSO SHE NOTES THE INFLUENCE ON BEHAVIOR OF OLD FASHIONED IDEAS SOMETHING AS SIMPLE AS GETTING MARRIED BEFORE YOU HAVE KIDS ACTUALLY THAT LAST CONDITION IS SUBJECT TO DETERIORATION ILLEGITIMACY AMONG WHITE HISPANICS HAS RISEN APPRECIABLY ACCORDING TO CALIFORNIA STATE STATISTICS AND NOW ACCOUNTS FOR HALF THEIR BIRTHS IN LOS ANGELES COUNTY STILL THEIR FAMILY FORMATION RATES ARE RELATIVELY HIGH UNDENIABLY A BIG REASON THE IMMIGRANT ETHNIC PROFILE IS APPEALING TO AN H. M. O. PLANNER IS THE YOUNGER MAKEUP OF THESE GROUPS AVERAGE INCOMES MAY LAG BUT SO DOES THE INCIDENCE OF CHRONIC AILMENTS THIS MARKET COULD BENEFIT FROM SPECIALLY TAILORED COVERAGE THEY GO IN THE HOSPITAL FOR BABIES WHY SHOULD THEY PAY FOR HEART DISEASE SAYS MS. LOPEZ WILLIAMS AGING IS INEVITABLE OF COURSE SO PART OF THE QUOTE VALUE ADDED QUOTE VIVAHEALTH PROMISES IS PREVENTIVE COUNSELING AND CHECKUPS TO HELP ITS ENROLLEES STAY WELL TO THE END IT ISN'T EASY TO GET AN H. M. O. GOING UNDER A CALIFORNIA LAW THAT RESPONDED TO BUSTS OF SOME EARLY PLANS SAN DIEGO HEALTH CONSULTANT EDWARD MARTINEZ FIGURES STARTUP CAPITAL MUST EXCEED ONE MILLION DOLLARS AND THE AMOUNT OF TECHNICAL RESOURCES REQUIRED TO GET LICENSURE ARE BEYOND THE MEANS OF THE TYPICAL MEDICAL GROUP NEVERTHELESS ETHNIC PROVIDERS ARE EMERGING VIVAHEALTH'S FOUNDERS WHO TOOK MORE THAN SEVEN YEARS AND THREE MILLION DOLLARS TO GET OUT OF THE GATE ENVISION EXPANSION ALONG THE ETHNIC CORRIDORS OF CALIFORNIA AND OUT TO THE STATES OF THE SOUTHWEST PROBABLY THROUGH JOINT VENTURES THE BIG UNCERTAINTY NOW IS WASHINGTON ANY REFORM PLAN THAT FORCES A BLENDING OR COMMUNITY RATING OF RISKS WOULD DEPRIVE A YOUNGER STURDIER SUBGROUP OF THE CHANCE TO EXPLOIT ITS ADVANTAGE AND IN THE CASE OF LATINOS WOULD COMPEL THEM TO SUBSIDIZE A WEALTHIER AND SICKER OR AT LEAST MORE MEDICALLY DEMANDING SOCIETY VIVAHEALTH'S APPROACH IS GEARED TO PICKING UP ONE OF THE MOST DIFFICULT PIECES OF THE HEALTH CARE PUZZLE THE SMALL OR FAMILY BUSINESS COVERAGE FOR SUCH ENTERPRISES IS USUALLY EXPENSIVE BECAUSE THEY REPRESENT SUCH TINY RISK POOLS MS. LOPEZ WILLIAMS SEEKS TO OFFER AN AFFORDABLE PLAN TO THE MULTITUDE OF MOM AND POP OPERATORS USING THE LARGER ETHNIC BASE'S EXPERIENCE PROFILE BUT THE CLINTON PLAN THOUGH IT CONTAINS SUBSIDIES TO INDIGENOUS HEALTH CARE IN UNDER SERVED AREAS WOULD GUT VIVAHEALTH'S VEHICLE IN PLACE OF PRE PAID CARE SUITED TO THE MODEST EXPECTATIONS OF THE ETHNIC MARKET UNIFORM FORTUNE FIVE HUNDRED COVERAGE WOULD BE ESTABLISHED BY MAMMOTH PLANNING BOARDS AND MICROMANAGEMENT AN ALTERNATIVE THE COOPER GRANDY BILL NOW ATTRACTING BIG BUSINESS SUPPORT IS O. K. AS LONG AS IT LEAVES THE OPTION TO SAY NO TO BLUEPRINT COVERAGE MS. LOPEZ WILLIAMS SAYS BUT SHE'D PREFER SENATOR PHIL GRAMM'S MORE MARKET ORIENTED BILL SOME OF THE SENATOR'S THOUGHTS ON HEALTH CARE APPEAR ON THE EDITORIAL PAGE TODAY GIVEN A CHOICE A CAFE OWNER MIGHT CHOOSE TO COVER ONLY CATASTROPHIC ILLNESS MOREOVER A FAMILY BUSINESS CLIENTELE MEANS AN INSURANCE PLAN LESS SUBJECT TO THIRD PARTY PAYER DISTORTIONS IT'S AS CLOSE AS YOU'RE LIKELY TO GET TO POINT OF PURCHASE RESPONSIBILITY IN TODAY'S WORLD OF PACKAGED EMPLOYER PAID MEDICINE VIVAHEALTH WOULD HAVE TO PROVE ITSELF AS AN ENTERPRISE BUT ITS CONCEPT IS AN EXAMPLE OF HOW THE MARKETPLACE CAN WORK TO RID EVEN A FLAWED SYSTEM OF SOME OF ITS SORRY MANIFESTATIONS THE SCIENTIFIC STATISM OF CLINTONIZED HEALTH CARE DESIGNED SO METHODICALLY TO RID AN EIGHT HUNDRED BILLION DOLLAR SECTOR OF ITS PERVERSITIES WOULD SUCK THE OXYGEN OUT OF SUCH INNOVATION MS. LOPEZ WILLIAMS SAYS VIVAHEALTH IS PREPARED FOR THE WORST IF IT IS UNABLE TO FUNCTION AS A SELF CONTAINED H. M. O. IT CAN BECOME AN ACCESS PIECE FOR ONE OF THE GIANT HEALTH CARE NETWORKS THAT WILL EMERGE UNDER A CLINTON TYPE SYSTEM BUT IN THAT ENVIRONMENT SHE FEARS THE HIGHER PAYROLL COSTS THAT WILL BE SPREAD OVER THE WHOLE ECONOMY WILL MOST AFFECT THE ETHNIC POPULATION SHE IS TRYING TO SERVICE BY THREATENING JOBS ON THE MARGIN THE FINANCING OF THE CLINTON PLAN SHE SAYS WOULD FALL SO FAR SHORT THAT THE PROMISED SUBSIDIES TO SMALL BUSINESS WILL BE GONE IN SHORT ORDER THIS PEPPERDINE M. B. A. USES MANAGEMENT ARGOT TO BRAND THE CLINTON WAY A DEPARTURE FROM NEARLY EVERYTHING EXECUTIVES HAVE LEARNED IN RECENT YEARS ABOUT GLEANING EFFICIENCIES AND SERVING CUSTOMERS IN LAY TERMS IT ALL COMES DOWN TO THE FOLLY OF ONE SIZE FITS ALL QUOTE I THINK THE INTENT WAS MAGNIFICENT QUOTE SHE SAYS BUT QUOTE IT'S GOING TO BE DICTATED FROM THE TOP AND MY COMMUNITY IS VULNERABLE QUOTE THE FORMER CHAIRMAN FIRED FROM GERMANY'S METALLGESELLSCHAFT A. G. IS SEEKING A SETTLEMENT OF NEARLY TEN MILLION MARKS FIVE POINT SIX EIGHT MILLION DOLLARS THE MAGAZINE DER SPIEGEL REPORTED BUT A SPOKESMAN FOR THE ENGINEERING METALS AND TRADING COMPANY SAID SUCH A REQUEST HASN'T BEEN RECEIVED THE COMPANY'S STOCK FELL THIRTEEN MARKS OR FIVE POINT SIX PERCENT TO TWO HUNDRED TWENTY ONE MARKS IN FRANKFURT HEINZ SCHIMMELBUSCH WHO WAS CHAIRMAN OF THE MANAGEMENT BOARD WAS FIRED IN DECEMBER A MONTH AFTER HIS EMPLOYMENT CONTRACT WAS RENEWED FOR FIVE YEARS THE COMPANY CITED A LACK OF CONTROL OVER COMPANY OPERATIONS AND FAILURE TO KEEP THE SUPERVISORY BOARD PROPERLY INFORMED ACCORDING TO DER SPIEGEL SOME OF MR. SCHIMMELBUSCH'S ALLIES WITHIN THE COMPANY WANT THE SETTLEMENT PAID OUT AS SOON AS POSSIBLE OTHER OFFICIALS WANT TO AWAIT THE OUTCOME OF A SPECIAL AUDIT THAT IN PART WILL EXAMINE WHETHER THE FORMER OFFICIAL DISOBEYED GERMAN CORPORATE LAW IF THAT IS THE CASE HE WOULDN'T RECEIVE A SETTLEMENT TWO JANUARY THIRTY FIRST LETTERS TO THE EDITOR IN RESPONSE TO SUSAN HAUSER'S DECEMBER TWENTY EIGHTH ARTICLE QUOTE BORED ON FIFTH QUOTE SHARED A COMMON ERROR THE WORLD FAMOUS TOY STORE F. A. O. SCHWARZ IS SPELLED WITHOUT THE T. OUR CHAIRMAN H. MARSHALL SCHWARZ IS THE GREAT GRANDSON OF F. A. O. SCHWARZ FLOODED WITH CASH FROM INDIVIDUALS PURSUING FOREIGN STOCK INVESTMENTS ACORN INTERNATIONAL FUND WILL CLOSE ITS DOORS TO NEW INVESTORS ON FRIDAY QUOTE THIS THING HAS GONE OUT OF CONTROL WITH PEOPLE LOOKING FOR VARIOUS WAYS TO GET MONEY OVERSEES QUOTE SAYS RALPH WANGER OF WANGER ASSET MANAGEMENT L. P. THE CHICAGO BASED INVESTMENT ADVISER TO ACORN INTERNATIONAL LAUNCHED IN SEPTEMBER NINETEEN NINETY TWO THE FUND HAD A WHOPPING RETURN OF FORTY NINE POINT ONE ONE PERCENT IN NINETEEN NINETY THREE AND IS UP FIVE POINT FOUR PERCENT SO FAR THIS YEAR WITH ABOUT ONE POINT TWO BILLION DOLLARS IN TOTAL ASSETS CURRENTLY ACORN INTERNATIONAL HAS BEEN RECEIVING AN ADDITIONAL TEN MILLION DOLLARS TO FIFTEEN MILLION DOLLARS A DAY FROM INVESTORS SAYS MR. WANGER WE'VE OBVIOUSLY BEEN ONE OF THE FUNDS INVESTORS ARE TURNING TO BUT IN A SMALL STOCK INVESTMENT FORMAT WE DON'T WANT TO HAVE TO BUY TOO MANY NAMES TO USE UP ALL THE MONEY ACORN INTERNATIONAL INVESTS IN SMALL COMPANIES MOSTLY UNDER ONE BILLION DOLLARS IN MARKET VALUE FROM ABOUT THIRTY EIGHT DIFFERENT COUNTRIES RECENTLY THE FUND HAS INCREASED ITS EXPOSURE IN MEXICAN STOCKS WHICH MAKE UP FOUR PERCENT OF ITS TOTAL ASSETS THE PROFANITY LADEN COMMENTS OF HOUSTON LAWYER JOSEPH JAMAIL ONE OF THE NATION'S MOST SUCCESSFUL PLAINTIFFS' ATTORNEYS HAVE LANDED HIM IN HOT WATER WITH THE DELAWARE SUPREME COURT AND COULD RESULT IN HIS BEING BARRED FROM PRACTICING IN THAT STATE THE DELAWARE HIGH COURT IN AN UNUSUAL STEP SAID MR. JAMAIL'S QUOTE EXTRAORDINARILY RUDE UNCIVIL AND VULGAR QUOTE CONDUCT IN A RECENT DEPOSITION COULD PREVENT HIM FROM BEING ALLOWED TO APPEAR IN ANY DELAWARE LEGAL PROCEEDING IN AN ADDENDUM TO A WRITTEN OPINION ON FRIDAY THE COURT LAMBASTED MR. JAMAIL FOR HIS COMMENTS DURING A PRETRIAL FACT FINDING INTERVIEW IN CONNECTION WITH LITIGATION IN THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INCORPORATED ALTHOUGH MR. JAMAIL'S ACTIONS HAD NO EFFECT ON THE LEGAL ISSUES BEFORE THE COURT THE STATE'S HIGH COURT SAID THE MISCONDUCT WARRANTED A STERN RESPONSE THE COURT DEVOTED SIXTEEN PAGES TO THE MATTER AT THE END OF A SIXTY SEVEN PAGE OPINION MR. JAMAIL IS BEST KNOWN FOR WINNING A TEN POINT FIVE THREE BILLION DOLLAR JURY VERDICT AGAINST TEXACO INCORPORATED IN NINETEEN EIGHTY FIVE ON BEHALF OF CLIENT PENNZOIL COMPANY MR. JAMAIL'S FEE IN THAT CASE WAS REPORTED TO BE SEVERAL HUNDRED MILLION DOLLARS IN THE PARAMOUNT MATTER THE COURT QUOTED A TRANSCRIPT OF THE DEPOSITION IN WHICH MR. JAMAIL REFERS TO ANOTHER ATTORNEY WILLIAM JOHNSTON WITH A CRUDE ANATOMICAL REFERENCE AND TELLS HIM TO SPEED UP THE QUESTIONING OF MR. JAMAIL'S CLIENT L. HUGH LIEDTKE A PARAMOUNT DIRECTOR AND PENNZOIL CHAIRMAN MR. JAMAIL ALSO TOLD MR. JOHNSTON WHO REPRESENTS Q. V. C. NETWORK INCORPORATED A PARAMOUNT SUITOR YOU COULD GAG A MAGGOT OFF A MEAT WAGON THE COURT SAID MR. JAMAIL'S BEHAVIOR DEMONSTRATES SUCH AN ASTONISHING LACK OF PROFESSIONALISM AND CIVILITY THAT IT IS WORTHY OF SPECIAL NOTE HERE AS A LESSON FOR THE FUTURE A LESSON OF CONDUCT NOT TO BE TOLERATED OR REPEATED ALTHOUGH A DEPOSITION ISN'T CONDUCTED BEFORE A JUDGE SUCH AN OFFICIAL SWORN INTERVIEW PRIOR TO A CIVIL TRIAL IS CONSIDERED A COURT PROCEEDING AND THE SAME RULES OF COURTROOM BEHAVIOR APPLY SPECIALISTS IN LEGAL ETHICS SAY THE DELAWARE RULING COMES AT A TIME WHEN MANY JUDGES AROUND THE COUNTRY HAVE BECOME FED UP WITH A LACK OF CIVILITY AMONG LAWYERS CIVILITY IS SEEN AS A NECESSARY ARM OF PROFESSIONALISM AND OF PROFESSIONAL ETHICS SAID MICHAEL G. DAIGNEAULT WHOSE FALLS CHURCH VIRGINIA FIRM TEACHES ETHICAL CONDUCT TO LAW FIRMS AND BUSINESSES WHILE STATE COURT SYSTEMS ALL HAVE RULES REQUIRING CIVILITY BETWEEN COURTROOM ADVERSARIES THE DELAWARE COURTS MAY PLACE A HIGHER PREMIUM ON GOOD BEHAVIOR SAID DONALD PEASE A PROFESSOR AT WIDENER UNIVERSITY SCHOOL OF LAW IN WILMINGTON DELAWARE DELAWARE IS VERY PICKY ABOUT LAWYERS WHO ACT IN AN UNCIVIL WAY IN LITIGATION CIVILITY IS CERTAINLY EMPHASIZED BY THE DELAWARE SUPREME COURT PROFESSOR PEASE SAID ADDING THAT THE COURT'S CHIEF JUDGE GAVE A SPEECH ABOUT THIS ISSUE TO WIDENER'S GRADUATING STUDENTS LAST YEAR THE CHIEF JUDGE ALSO WROTE THE DECISION CRITICIZING MR. JAMAIL MR. JAMAIL SAID HE ISN'T CONCERNED ABOUT THE RULING BY THE DELAWARE JUDGES WHOM HE REFERRED TO AS QUOTE BUREAUCRATS IN ROBES QUOTE THE JUDGE WHO WROTE THIS I GUESS HE THINKS HE IS EMILY POST THE HOUSTON ATTORNEY SAID MR. JAMAIL SAID THAT INSTEAD OF CRITICIZING HIS LACK OF MANNERS THE COURT SHOULD HAVE REPRIMANDED THE LAWYER WHOM MR. JAMAIL INSULTED MR. JAMAIL CLAIMS THAT THE ATTORNEY MR. JOHNSTON WAS WASTING TIME DURING THE DEPOSITION BY REPEATEDLY ASKING QUESTIONS THAT MR. LIEDTKE COULDN'T ANSWER MR. JOHNSTON A WILMINGTON DELAWARE ATTORNEY DECLINED TO DISCUSS THE MATTER EXCEPT TO SAY I'M GRATIFIED THAT THE COURT ADDRESSED THE SITUATION THE COURT IN A FOOTNOTE SAID ALTHOUGH THE QUESTIONING IN THE LIEDTKE DEPOSITION COULD HAVE PROCEEDED MORE CRISPLY THIS WAS NOT A CASE WHERE IT WAS THE QUESTIONER WHO ABUSED THE PROCESS MR. JAMAIL WHO HAS WON MORE THAN ONE HUNDRED MULTIMILLION DOLLAR VERDICTS AND JUDGMENTS ALSO SAID THAT HE HAS NO INTEREST IN APPEARING IN DELAWARE LEGAL MATTERS THERE'S NOT ENOUGH MONEY THERE FOR ME TO GO TO DELAWARE MR. JAMAIL SAID THE STATE SUPREME COURT INVITED MR. JAMAIL TO APPEAR BEFORE IT TO EXPLAIN WHY HE SHOULDN'T BE BARRED FROM PRACTICING IN DELAWARE BECAUSE MR. LIEDTKE'S DEPOSITION WAS CONDUCTED IN HOUSTON AND MR. JAMAIL WASN'T INVOLVED IN ANY OTHER ASPECTS OF THE LITIGATION IT WASN'T REQUIRED IN THIS CASE THAT HE BE LICENSED TO PRACTICE IN DELAWARE AS A RESULT THE COURT CAN'T TAKE ANY ACTION AGAINST MR. JAMAIL SUCH AS CENSURING HIM OR ORDERING HIM TO PAY SANCTIONS BUT THE COURT SAID IT WOULD HAVE PUNISHED A DELAWARE LAWYER FOR SUCH CONDUCT EACH STATE HAS ITS OWN STANDARDS OF BEHAVIOR FOR LAWYERS IN HIS HOME STATE MR. JAMAIL'S BEHAVIOR PROBABLY WOULD HAVE VIOLATED THE TEXAS LAWYER'S CREED AS THAT STATE'S GUIDELINES ARE KNOWN SAID ROBERT SCHUWERK A PROFESSOR AT THE UNIVERSITY OF HOUSTON LAW CENTER AMONG OTHER THINGS THE CREED SAYS THAT IN DEALING WITH OTHER ATTORNEYS I CAN DISAGREE WITHOUT BEING DISAGREEABLE I WILL AVOID DISPARAGING PERSONAL REMARKS OR ACRIMONY TOWARDS OPPOSING COUNSEL QUOTE THE CREED ALSO SAYS LAWYERS WILL REFRAIN FROM OBNOXIOUS BEHAVIOR AND ANY ALLUSION TO PERSONAL PECULIARITIES OR IDIOSYNCRASIES OF OPPOSING COUNSEL TEXAS RULES HOWEVER DON'T PROVIDE FOR LAWYERS TO BE SANCTIONED FOR VIOLATING THE GUIDELINES AVERAGE LIBEL AWARDS AGAINST PUBLISHERS AND BROADCASTERS DECLINED DURING THE PAST TWO YEARS ACCORDING TO THE LIBEL DEFENSE RESOURCE CENTER ALSO THE ANNUAL NUMBER OF LIBEL CASES TRIED AGAINST NEWS ORGANIZATIONS DROPPED TO THE LOWEST LEVEL SINCE THE NEW YORK BASED INFORMATION CLEARINGHOUSE BEGAN TRACKING THE DATA IN NINETEEN EIGHTY AND THE RATE OF DEFENSE VICTORIES ROSE CONSIDERABLY FROM PREVIOUS PERIODS IT'S NOT CLEAR WHAT THE NINETEEN NINETY TWO AND NINETEEN NINETY THREE NUMBERS MEAN SAID THE GROUP'S GENERAL COUNSEL HENRY R. KAUFMAN ADDING THAT IT MIGHT OR MIGHT NOT BE AN ABERRATION ACCORDING TO THE GROUP'S REPORT THERE WERE AN AVERAGE OF TWELVE LIBEL TRIALS A YEAR IN NINETEEN NINETY TWO AND NINETEEN NINETY THREE COMPARED WITH AN AVERAGE OF SEVENTEEN POINT FIVE FOR THE TWO YEARS PRIOR TO THAT AND MORE THAN TWENTY FIVE A YEAR DURING THE DECADE OF THE NINETEEN EIGHTIES NEWS ORGANIZATIONS IN NINETEEN NINETY TWO AND NINETEEN NINETY THREE WON NEARLY HALF THE TRIALS AGAINST THEM ACCORDING TO THE REPORT COMPARED WITH ONLY ABOUT TWENTY FIVE PERCENT DURING THE NINETEEN EIGHTIES THE AVERAGE DAMAGE AWARD FOR THE NINETEEN NINETY TWO TO NINETY THREE PERIOD ONE POINT ONE MILLION DOLLARS WAS SIGNIFICANTLY LOWER THAN THE AVERAGE FOR THE NINETEEN EIGHTIES ONE POINT FIVE MILLION DOLLARS MILO GEYELIN CONTRIBUTED TO THIS ARTICLE ALL OF WHICH ARE EQUALLY BORING AND NOT TOO BAD DOWN UNDER TAKE OUT LUNCH TOTE CUISINE LUKENS INCORPORATED COATESVILLE PENNSYLVANIA SAID IT REACHED A DEFINITIVE AGREEMENT TO SELL THE ASSETS OF ITS MATERIALS HANDLING GROUP AS PART OF ITS PLANS TO CONCENTRATE ON ITS CORE STEEL BUSINESS TERMS OF THE AGREEMENT WEREN'T DISCLOSED THE GROUP'S ASSETS WILL BE SOLD TO POWERSCREEN INTERNATIONAL P. L. C. OF DUNGANNON NORTHERN IRELAND LUKENS MATERIALS HANDLING GROUP CONSISTS OF SIMPLICITY ENGINEERING INCORPORATED AND LUDLOW SAYLOR INCORPORATED THE TWO UNITS HAD COMBINED NINETEEN NINETY THREE SALES OF ABOUT TWENTY FIVE MILLION DOLLARS AND ARE PROFITABLE LUKENS SAID SIMPLICITY MAKES PRODUCTS USED FOR PROCESSING AND CONVEYING BULK MATERIALS SUCH AS CRUSHED STONE SAND AND GRAVEL LUDLOW SAYLOR MAKES HEAVY GAUGE WOVEN WIRE AND CAST POLYURETHANE SCREENS USED MAINLY TO CLASSIFY BULK MATERIALS THE CLINTON BUDGET WOULD JACK UP THE PRICE OF CIGARETTES AS WELL AS MAKING IT MORE EXPENSIVE TO VISIT YELLOWSTONE GET A COPY OF YOUR TAX RETURN SELL A GUN OR TRADE STOCKS THE NEW BUDGET HITS ONLY SMOKERS WITH A TAX INCREASE UP SEVENTY FIVE CENTS A PACK TO NINETY NINE CENTS WHICH WOULD PAY FOR THE ADMINISTRATION'S AMBITIOUS HEALTH CARE PLAN BUT THE BUDGET WOULD RAISE ABOUT ONE POINT FIVE BILLION DOLLARS IN NEW USER FEES IN FISCAL NINETEEN NINETY FIVE YIELDING ABOUT EIGHT POINT FOUR BILLION DOLLARS THROUGH NINETEEN NINETY NINE IN A BUDGET GEARED TOWARD REDUCING THE DEFICIT THE USER FEES ARE MORE PALATABLE POLITICALLY THAN HIGHER TAXES FOR ONE THING THEY DON'T REQUIRE SEPARATE TAX LEGISLATION MOREOVER THE FEES HELP COVER THE COSTS OF GOVERNMENT SERVICES WITHOUT ADDING TO THE BUDGET DEFICIT QUOTE THESE ARE IMPORTANT BECAUSE THEY ALLOW YOU TO SPEND MORE ON OTHER THINGS QUOTE SAID STANLEY COLLENDER OF PRICE WATERHOUSE WHO CLOSELY FOLLOWS THE FEDERAL BUDGET LEON PANETTA HEAD OF THE OFFICE OF MANAGEMENT AND BUDGET DEFENDED THE USER FEES AT A NEWS CONFERENCE YESTERDAY SAYING THAT THEY DON'T EXCEED THOSE IN SPENDING PLANS PROPOSED BY CONGRESSIONAL REPUBLICANS WALL STREET AND PHARMACEUTICAL COMPANIES GET HIT WITH THE BIGGEST FEES THE BUDGET ESTIMATES THAT THE FOOD AND DRUG ADMINISTRATION WILL REAP THREE HUNDRED THIRTY EIGHT MILLION DOLLARS IN FISCAL NINETEEN NINETY FIVE BY CHARGING DRUG COMPANIES FOR THE PROCESS OF APPROVING NEW PRODUCTS THE F. D. A. FEES STEM FROM RECENT LAWS CALLING FOR SPEEDIER F. D. A. APPROVALS OR REJECTIONS OF NEW DRUGS AND MEDICAL DEVICES AS WELL AS FOR NEW INSPECTIONS FOR MAMMOGRAPHY EQUIPMENT AN APPLICATION FOR THE F. D. A. TO TEST AND APPROVE A NEW DRUG FOR EXAMPLE WILL BE TWO HUNDRED EIGHT THOUSAND DOLLARS IN FISCAL NINETEEN NINETY FIVE THE F. D. A. IS TO INCREASE ITS STAFFING FOR THOSE PURPOSES A VARIETY OF SECURITIES FEES WOULD RAISE THREE HUNDRED SEVENTY EIGHT MILLION DOLLARS IN FISCAL NINETEEN NINETY FIVE FOR INSTANCE THE FEE ON THE SALES OF STOCKS WOULD INCREASE TO ONE TWO HUNDRED FIFTY TH OF ONE PERCENT OF THE SALES AMOUNT FROM ONE THREE HUNDREDTH OF ONE PERCENT AND ALL THOSE CORPORATE TITANS BATTLING TO BUY PARAMOUNT COMMUNICATIONS INCORPORATED BEWARE THE FEE ON TENDER OFFERS AND MERGERS WILL INCREASE TO ONE TWENTY NINTH OF ONE PERCENT OF THE TRANSACTION PRICE FROM ONE FIFTY TH OF ONE PERCENT THAT TEN BILLION DOLLAR DEAL FOR EXAMPLE WOULD RESULT IN A THREE POINT FOUR MILLION DOLLAR FEE TO THE SECURITIES AND EXCHANGE COMMISSION A BOOST IN THE MAXIMUM DRIVE IN FEE AT NATIONAL PARKS TO SIXTEEN DOLLARS FROM THE CURRENT TEN DOLLARS GUN DEALERS WOULD BE ASSESSED SIX HUNDRED DOLLARS A YEAR UP FROM TWO HUNDRED DOLLARS A YEAR RAISING TWENTY FIVE MILLION DOLLARS A YEAR THE INTERNAL REVENUE SERVICE WOULD CHARGE TWELVE DOLLARS FOR PHOTOCOPIES OF TAX RETURNS UP FROM FOUR DOLLARS AND TWENTY FIVE CENTS PREVIOUSLY RAISING FIVE MILLION DOLLARS AND THE AGRICULTURE DEPARTMENT WOULD BEGIN CHARGING FOR OVERTIME FOR ITS MEAT AND POULTRY INSPECTORS RAISING ONE HUNDRED THREE MILLION DOLLARS IN FISCAL NINETEEN NINETY FIVE A PEA IN THE POD INCORPORATED DALLAS SAID SALES FOR ITS FOURTH QUARTER ENDED JANUARY TWENTY NINTH ROSE THIRTY FIVE PERCENT TO ELEVEN POINT THREE MILLION DOLLARS FROM EIGHT POINT FOUR MILLION DOLLARS A YEAR EARLIER THOUGH SALES AT STORES OPEN A YEAR OR MORE DROPPED SEVEN POINT FIVE PERCENT FOR THE FULL FISCAL YEAR SALES GREW THIRTY SEVEN PERCENT TO FORTY POINT NINE MILLION DOLLARS FROM TWENTY NINE POINT EIGHT MILLION DOLLARS WITH SALES AT STORES OPEN A YEAR OR MORE UP TWO PERCENT THE SPECIALTY MATERNITY PRODUCTS AND APPAREL RETAILER SAID THE FISCAL YEAR AND FOURTH QUARTER WERE RESPECTIVELY FIFTY THREE WEEKS AND FOURTEEN WEEKS COMPARED WITH FIFTY TWO WEEKS AND THIRTEEN WEEKS FOR THE PREVIOUS YEAR THE COMPANY SAID SALES WERE HURT BY THE CANNIBALIZATION FROM OPENING ADDITIONAL STORES IN EXISTING MARKETS TOGETHER WITH THE IMPACT OF THE LOS ANGELES EARTHQUAKE AND HARSH WINTER WEATHER IN OTHER PARTS OF THE COUNTRY MARK F. SCHREIBER CHAIRMAN AND CHIEF EXECUTIVE SAID THE COMPANY EXPECTS TO OPEN SIX TO EIGHT STORES IN THE FIRST QUARTER OF NINETEEN NINETY FOUR DELL COMPUTER CORPORATION VOWING TO MAKE ADVANCED PERSONAL COMPUTER NETWORKS EASIER TO USE INTRODUCED FIFTEEN P. C. QUOTE SERVERS QUOTE OR COMPUTERS DESIGNED TO MANAGE NETWORKS THE MACHINES PRICED FROM FOUR THOUSAND FIVE HUNDRED NINETY EIGHT DOLLARS ARE MADE TO SERVE FROM TWENTY FIVE TO FIVE HUNDRED P. C.S AND INCLUDE DIAGNOSTIC SOFTWARE AIMED AT PINPOINTING PROBLEMS BEFORE THEY AFFECT THE NETWORK THE PRODUCTS COME AMID A BOOM IN THE SERVER MARKET AS MORE COMPANIES REPLACE MAINFRAME COMPUTERS WITH NETWORKS OF P. C.S DELL'S EFFORT TO SIMPLIFY ITS SYSTEMS INCLUDES INSTALLING CERTAIN SOFTWARE AND NETWORKING HARDWARE AT THE FACTORY AND INCLUDING SENSORS THAT CAN WARN USERS OF SAY OVERHEATING PARTS OR DEFECTIVE FANS DELL BASED IN AUSTIN TEXAS AND A LEADING MAIL ORDER MERCHANT OF P. C.S HAS STRUGGLED IN ITS RECENT SERVER EFFORTS IN PART BECAUSE OF A LIMITED DISTRIBUTION NETWORK OUTSIDE ITS MAIL ORDER STRONGHOLD SUSAN FRANKLE MANAGER OF SERVER RESEARCH AT INTERNATIONAL DATA CORPORATION IN FRAMINGHAM MASSACHUSETTS SAID THE SERVERS ARE AN IMPROVEMENT OVER DELL'S EXISTING LINE BUT CRITICIZED THE COMPANY'S CONTINUING LACK OF CORPORATE SALES EXPERTISE AS WELL AS SOME TECHNICAL SHORTCOMINGS THAT MIGHT MAKE THE SYSTEMS LESS ATTRACTIVE TO THE LARGEST CORPORATE NETWORKS IN RESPONSE TOM MARTIN DELL'S VICE PRESIDENT OF WORLD WIDE MARKETING NOTED THAT DELL HAS QUIETLY EXPANDED ITS NETWORK OF COMPUTER DEALERS AND RESELLERS WE'VE CHANGED OUR FOCUS PRETTY DRAMATICALLY IN THE LAST YEAR HE SAID THE FEDERAL COMMUNICATIONS COMMISSION POSTPONED A VOTE TO REVISE THE CABLE TELEVISION PRICE REGULATIONS IT ADOPTED LAST YEAR INSTEAD OF DECIDING THE MATTER THURSDAY AS PLANNED THE AGENCY TENTATIVELY SET A VOTE FOR FEBRUARY TWENTY SECOND THE DELAY GIVES THE STAFF MORE TIME TO COMPLETE A TOP TO BOTTOM REVIEW OF THE CABLE PRICING STRUCTURE THE AGENCY ADOPTED LAST APRIL TO COMPLY WITH THE NINETEEN NINETY TWO CABLE ACT THE RULES WHICH WENT INTO EFFECT IN SEPTEMBER HAVE GENERATED A CRUSH OF COMPLAINTS FROM CONSUMERS AND COMMUNITIES THAT SAW MONTHLY CABLE BILLS RISE RATHER THAN DROP THAT EFFECT WASN'T ENVISIONED BY LAWMAKERS WHO PASSED THE NINETEEN NINETY TWO LAW IN REACTION TO CONSUMER COMPLAINTS ABOUT SKYROCKETING CABLE RATES AND POOR SERVICE WHILE LAST YEAR'S RULES GENERALLY CUT THE PRICES CABLE COMPANIES CHARGE FOR REMOTE CONTROL DEVICES AND OTHER EQUIPMENT IN MANY CASES THEY LET CABLE COMPANIES BOOST PRICES FOR PROGRAMMING SERVICES AN F. C. C. SURVEY OF FOURTEEN CABLE COMPANIES LATE LAST YEAR FOUND THAT ABOUT A THIRD OF THE COMPANIES' SUBSCRIBERS HAD HIGHER MONTHLY BILLS AFTER THE RULES WENT INTO EFFECT HAWKER SIDDELEY CANADA INCORPORATED SAID BRITAIN'S B. T. R. P. L. C. AGREED WITH UNDERWRITERS TO SELL ITS FIFTY NINE PERCENT STAKE IN THE CANADIAN COMPANY FOR TWENTY FIVE POINT TWO FIVE CANADIAN DOLLARS EIGHTEEN U. S. DOLLARS AND EIGHTY THREE CENTS A SHARE OR A TOTAL OF ABOUT ONE HUNDRED TWENTY ONE MILLION CANADIAN DOLLARS HAWKER SIDDELEY SAID THE SHARES HAVEN'T BEEN REGISTERED FOR SALE IN THE U. S. BASED IN MISSISSAUGA ONTARIO HAWKER SIDDELEY CANADA REPAIRS AIRCRAFT AND MAKES INDUSTRIAL EQUIPMENT ITS SHARES CLOSED YESTERDAY AT TWENTY FIVE CANADIAN DOLLARS AND FIFTY CENTS DOWN FIFTY CANADIAN CENTS IN TRADING ON THE TORONTO STOCK EXCHANGE B. T. R. AN INDUSTRIAL CONGLOMERATE SAID LAST MONTH THAT IT PLANNED TO MAKE A PUBLIC OFFERING OF ITS STAKE IN THE CANADIAN SUBSIDIARY PRESIDENT CLINTON ENDORSED THE UNITED NATIONS SECRETARY GENERAL'S CALL FOR AUTHORITY TO ORDER WESTERN AIR STRIKES AROUND BESIEGED SARAJEVO AS THE U. S. RAISED THE PROSPECT OF OTHER STEPS TO PUNISH AND DISCOURAGE SERB AGGRESSION THE U. S. AND ITS EUROPEAN ALLIES BEGAN MOBILIZING AT LEAST RHETORICALLY FOLLOWING LAST WEEKEND'S SHELLING OF A SARAJEVO MARKET THAT KILLED SIXTY EIGHT CIVILIANS AND WOUNDED HUNDREDS MORE MR. CLINTON SAID QUOTE I VERY MUCH WELCOME QUOTE U. N. SECRETARY GENERAL BOUTROS BOUTROS GHALI'S REQUEST FOR AUTHORITY TO ORDER NORTH ATLANTIC TREATY ORGANIZATION AIR STRIKES ON BOSNIAN SERB ARTILLERY OR MORTAR POSITIONS EUROPEAN UNION FOREIGN MINISTERS MEETING IN BRUSSELS URGED NATO TO USE ALL MEANS NECESSARY TO END THE SIEGE OF SARAJEVO AND SECRETARY OF STATE WARREN CHRISTOPHER NOTING THAT MR. BOUTROS GHALI WAS ASKING FOR AUTHORITY FOR FUTURE AIR STRIKES SAID THAT WE'RE ALSO LOOKING AT OTHER POSSIBLE STEPS TO RESPOND TO SATURDAY'S ATTACK AS WELL AS THE LARGER PROBLEM OF THE SERBS' UNACCEPTABLE ACTIONS AGAINST THE CIVILIAN POPULATION OF SARAJEVO U. S. OFFICIALS SAID THE NORTH ATLANTIC COUNCIL NATO'S POLITICAL ARM IS EXPECTED TO MEET TOMORROW AND DISCUSS WHETHER TO GRANT MR. BOUTROS GHALI'S REQUEST ANTHONY LAKE NATIONAL SECURITY ADVISER TRAVELED LAST EVENING TO SHREVEPORT LOUISIANA TO BRIEF PRESIDENT CLINTON WHO IS ON A TRIP TO PROMOTE HIS DOMESTIC AGENDA BUT GIVEN THE WEST'S RECORD OF TOUGH TALK AND SCANT ACTION IT ISN'T CLEAR WHAT STEPS WILL BE TAKEN A U. S. OFFICIAL SAID THE EUROPEAN UNION'S ACTION WAS A NICE OVERALL STATEMENT BUT WE'LL SEE WHAT IT MEANS NOTING THAT NATIONS SUCH AS BRITAIN CANADA SPAIN AND PORTUGAL REMAIN LEERY OF AIR STRIKES AND EUROPEANS CONSIDER WASHINGTON'S CREDIBILITY ON BOSNIA TO BE EXTREMELY LOW U. S. OFFICIALS LEFT VAGUE WHAT OTHER STEPS MIGHT BE TAKEN TO PUNISH THE BOSNIAN SERBS AND PROMOTE A PEACE SETTLEMENT IN THE FORMER YUGOSLAVIA DEFENSE SECRETARY WILLIAM PERRY REFERRING TO THOSE PEACE EFFORTS SAID YESTERDAY THAT TO THE EXTENT ANY USE AT ALL OF AIR STRIKES FURTHERS THAT STRATEGIC OBJECTIVE THEN IT IS WORTH CONSIDERATION THE U. S. IS EXPECTED TO BRING A PACKAGE OF MILITARY AND DIPLOMATIC MOVES TO TOMORROW'S MEETING AMONG THE MEASURES U. S. OFFICIALS WANT TO DISCUSS IS SETTING A DEADLINE FOR THE BOSNIAN SERBS TO WITHDRAW THEIR ARTILLERY FROM AROUND SARAJEVO OR USING THE THREAT OF AIR STRIKES AS A DETERRENT TO SERBIAN AGGRESSION ACCORDING TO A MILITARY OFFICER ATTACHED TO NATO AN IDEA UNDER DISCUSSION BY MILITARY PLANNERS IS BOMBING PALE THE BOSNIAN SERB HEADQUARTERS A SHORT DISTANCE SOUTHEAST OF SARAJEVO THAT'S A TEMPTING OPTION THE OFFICER SAID SOME OF THE AIR STRIKES NATO PLANNERS CONSIDERED LAST SUMMER INVOLVED TURNING THE BOSNIAN SERB QUARTERS IN PALE INTO WHAT ANOTHER NATO OFFICER CALLED A GRAVEL PIT AT THE SAME TIME SENIOR U. S. OFFICIALS MEETING AT THE WHITE HOUSE TWICE YESTERDAY DISCUSSED NEW DIPLOMATIC STEPS THAT THE U. S. MIGHT TAKE TO HELP END THE FIGHTING SOME MOVES TALKED ABOUT INCLUDED HAVING WASHINGTON PLAY AN HONESTBROKER ROLE IN NEGOTIATIONS AS WELL AS DISPATCHING A SPECIAL ENVOY TO HELP THE BOSNIAN MUSLIMS REDRAW A PEACE SETTLEMENT MAP WHICH THEY COULD TAKE TO THE NEGOTIATING TABLE A SENIOR U. S. OFFICIAL SAID THAT THE U. S. DIDN'T EXPECT TO SCRAP THE PARTITION MAP THAT HAS BEEN UNDER DISCUSSION FOR SEVERAL MONTHS INSTEAD THE U. S. COULD HELP FINETUNE THE MAP TO MEET THE MUSLIM LED GOVERNMENT'S SECURITY AND POLITICAL CONCERNS AS PART OF THAT PROCESS THE OFFICIAL SAID THE U. S. MIGHT HAVE TO PERSUADE THE MUSLIMS TO GIVE UP SOME OF THEIR BATTLEFIELD GAINS FROM RECENT WEEKS QUOTE WE ARE CONTINUING THE SEARCH FOR WAYS TO REINVIGORATE THE DIPLOMATIC EFFORTS AIMED AT ACHIEVING A POLITICAL SETTLEMENT AT THE CONFLICT IN BOSNIA QUOTE MR. CHRISTOPHER SAID DURING A NEWS CONFERENCE YESTERDAY A SENIOR OFFICIAL EMPHASIZED HOWEVER THAT THE U. S. WOULDN'T GET INVOLVED IN BROW BEATING THE BOSNIAN GOVERNMENT INTO ACCEPTING A BAD DECISION PREVIOUSLY WASHINGTON HAS REFUSED EUROPEAN CALLS TO JOIN THE NEGOTIATING EFFORT SAYING IT WOULDN'T PARTICIPATE IN FORCING A SETTLEMENT DOWN THE BOSNIAN MUSLIMS' THROATS MEANWHILE LORD OWEN THE E. U. PEACE ENVOY SAID THAT BOSNIAN SERBS AGREED TO NEGOTIATE A SEPARATE PEACE FOR SARAJEVO ACCORDING TO WIRE SERVICE REPORTS HE SAID IT WAS AN AGREEMENT TO NEGOTIATE A U. N. ADMINISTRATION AND DEMILITARIZATION OF SARAJEVO SEPARATE FROM AN OVERALL PEACE SETTLEMENT HOWEVER UNDER PREVIOUS THREATS OF AIR STRIKES BOSNIAN SERBS HAVE MADE SIMILAR PROMISES WHICH THEY LATER DISCARDED ALTHOUGH U. N. OFFICIALS HAVEN'T DEFINITIVELY PLACED THE BLAME FOR SATURDAY'S MORTAR ATTACK MR. CHRISTOPHER SAID THAT THE STRONG PRESUMPTION IN MY MIND IS THAT IT WAS BY THE SERBS IN ANY CASE U. S. OFFICIALS SAID THE WEST COULD RETALIATE FOR AN ATTACK LAST FRIDAY BY BOSNIAN SERBS IN WHICH TEN CIVILIANS WERE KILLED WHILE WAITING TO RECEIVE FOOD IN A SARAJEVO SUBURB BUT THE USE OF AIR STRIKES MAY MEET RESISTANCE FROM SOME NATIONS RUSSIAN FOREIGN MINISTER ANDREI KOZYREV WARNED IN MOSCOW YESTERDAY THAT U. N. AIR STRIKES WOULD BE THE LEAST SUCCESSFUL WAY TO RESOLVE THE CONFLICT IN BOSNIA AND WOULD LEAD ONLY TO AN ESCALATION IN VIOLENCE VIE DE FRANCE CORPORATION SAID IT WILL SELL THE ASSETS OF ITS RESTAURANT DIVISION TO YAMAZAKI BAKING COMPANY OF TOKYO FOR TWENTY MILLION DOLLARS THE DIVISION OPERATES THIRTY ONE RESTAURANTS IN THE U. S. EMPLOYS EIGHT HUNDRED AND REPORTED SALES OF TWENTY EIGHT POINT SIX MILLION DOLLARS FOR ITS FISCAL YEAR ENDED IN JUNE NINETEEN NINETY THREE YAMAZAKI A TOP BAKING COMPANY WITH ABOUT FOUR POINT NINE BILLION DOLLARS IN SALES AND SEVENTEEN THOUSAND EMPLOYEES PURCHASED VIE DE FRANCE'S WHOLESALE BAKERY DIVISION IN NINETEEN NINETY ONE STANISLAS VILGRAIN VIE DE FRANCE'S CHIEF EXECUTIVE OFFICER SAID THE SALE WOULD STRENGTHEN THE COMPANY'S FINANCIAL POSITION AND HELP IT DEVELOP ITS FAST GROWING CULINARY DIVISION WHICH PROVIDES PRODUCTS TO THE FOOD SERVICE INDUSTRY THE CULINARY DIVISION WILL BE THE COMPANY'S PRINCIPAL REMAINING OPERATION THE SALE IS SUBJECT TO CERTAIN CONDITIONS INCLUDING APPROVAL BY THE COMPANIES' BOARDS AND VIE DE FRANCE SHAREHOLDERS THE EXECUTION OF A DEFINITIVE PURCHASE AND SALE AGREEMENT AND RECEIPT OF ANY NECESSARY REGULATORY APPROVALS ON THE NASDAQ STOCK MARKET VIE DE FRANCE CLOSED AT FIVE DOLLARS AND TWENTY FIVE CENTS UP SIX POINT TWO FIVE CENTS HARDEE'S FOOD SYSTEMS INCORPORATED A UNIT OF IMASCO LIMITED IN MONTREAL REPORTED LOWER FOURTH QUARTER OPERATING PROFIT ON SLIGHTLY HIGHER SALES AND REVENUE THE ROCKY MOUNT N. C. FAST FOOD CHAIN SAID OPERATING PROFIT TOTALED EIGHTEEN POINT FIVE MILLION DOLLARS BEFORE A PREVIOUSLY ANNOUNCED EIGHTEEN MILLION DOLLAR PRETAX CHARGE RELATED TO THE SALE OF EIGHTY FOUR ROY ROGERS UNITS IN THE PHILADELPHIA AREA A YEAR EARLIER OPERATING PROFIT WAS TWENTY ONE POINT SEVEN MILLION DOLLARS HARDEE'S REVENUE FOR THE QUARTER WAS UP ONE POINT SIX PERCENT TO FIVE HUNDRED THREE POINT ONE MILLION DOLLARS COMPARED WITH FOUR HUNDRED NINETY FIVE POINT ONE MILLION DOLLARS A YEAR EARLIER SYSTEMWIDE SALES FOR THE FOUR THOUSAND NINETEEN STORE CHAIN EDGED UP SLIGHTLY TO ONE POINT TWO THREE BILLION DOLLARS FROM ONE POINT TWO TWO BILLION DOLLARS FOR THE YEAR HARDEE'S SAID OPERATING PROFIT TOTALED EIGHTY FOUR POINT SIX MILLION DOLLARS BEFORE THE CHARGE COMPARED WITH SIXTY THREE POINT ONE MILLION DOLLARS IN NINETEEN NINETY TWO REVENUE TOTALED TWO POINT OH THREE BILLION DOLLARS UP THREE POINT SIX PERCENT FROM ONE POINT NINE SIX BILLION DOLLARS A YEAR EARLIER WHILE SYSTEMWIDE SALES ROSE THREE PERCENT TO FOUR POINT NINE BILLION DOLLARS FROM FOUR POINT SEVEN FIVE BILLION DOLLARS THIS IS IN RESPONSE TO THE FEBRUARY FOURTH AMERICAS COLUMN BY CARLOS BALL I UNDERSTAND THAT MR. BALL IS A FREE LANCE WRITER WHOSE VIEWS DO NOT REPRESENT THE WALL STREET JOURNAL'S EDITORIAL POLICY NEVERTHELESS INASMUCH AS MR. BALL'S ARTICLE CONTAINS FALSE AND MISLEADING STATEMENTS ABOUT MY FAMILY MY INVOLVEMENT WITH BANCO LATINO MY FAMILY'S BUSINESS VENTURES KNOWN AS ODC COMPANIES AND OUR VIEWS ABOUT THE FUTURE OF VENEZUELA I HAVE TO OBJECT THE SUGGESTION THAT I AM PART OF A QUOTE CONTROLLING GROUP QUOTE OF BANCO LATINO IS FALSE AT ALL TIMES SINCE I BECAME ONE OF TEN DIRECTORS OF THE BANK IN LATE NINETEEN NINETY TWO I SERVED ONLY AS AN OUTSIDE DIRECTOR AND WAS NEVER INVOLVED IN THE MANAGEMENT OF THE BANK OR ITS DAY TO DAY OPERATIONS I PLAYED NO ROLE WHATSOEVER IN THE EVENTS THAT LED TO THE INTERVENTION IN THE BANK MOREOVER BANCO LATINO HAS NEVER SUFFERED ANY CREDIT LOSSES FROM TRANSACTIONS WITH ODC COMPANIES AT THE TIME OF THE INTERVENTION ALL ODC COMPANIES' TRANSACTIONS WERE CURRENT AND IN GOOD STANDING THE ARTICLE STATES THAT CADA OUR SUPERMARKET CHAIN IN VENEZUELA AND BANCO LATINO WERE SIPHONED OFF TO PURCHASE PUEBLO SUPERMARKETS OUR PUERTO RICO AND FLORIDA BASED SUPERMARKETS WHEN IN FACT NEITHER ORGANIZATION PROVIDED ANY FINANCING THE BANK FINANCING FOR THE ACQUISITION WAS PROVIDED BY A SYNDICATED BANK LOAN OF TWELVE SUBSTANTIAL U. S. BASED MONEY CENTER BANKS HEADED BY CHASE MANHATTAN BANK ALONG WITH THE BANK OF NOVA SCOTIA BANCO LATINO DID NOT PARTICIPATE NOR DID ANY OTHER VENEZUELAN INSTITUTION THE ARTICLE ATTRIBUTES THE INTERNATIONAL EXPANSION OF COMPANIES COMPRISING ODC TO A DESIRE OF THE CISNEROS FAMILY TO REDUCE EXPOSURE IN VENEZUELA FOLLOWING THE COUP ATTEMPT IN NOVEMBER NINETEEN NINETY TWO THIS IS FALSE MR. BALL SPECIFICALLY REFERS TO THE PURCHASE OF UNIVISION AS EVIDENCE THAT OUR COMPANIES ARE ABANDONING VENEZUELA BECAUSE OF POLITICAL TURMOIL NOTHING COULD BE FURTHER FROM THE TRUTH THE PURCHASE OF UNIVISION WAS ANNOUNCED APRIL EIGHTH NINETEEN NINETY TWO THE PURCHASE OF A FIFTY FIVE MILLION DOLLAR BUSINESS IS NOT DONE OVERNIGHT NEGOTIATIONS TO BUY UNIVISION BEGAN EARLY IN OCTOBER NINETEEN NINETY ONE IT IS EVIDENT TO US THAT THERE IS NO LINK AS MR. BALL STATES BETWEEN THE PURCHASE OF UNIVISION AND THE NOVEMBER NINETEEN NINETY TWO COUP ATTEMPT OUR EXPANSION OUTSIDE OF VENEZUELA DOES NOT MEAN WE'RE NEGLECTING OUR VENEZUELAN BUSINESSES ON THE CONTRARY OUR INVOLVEMENTS IN BUSINESSES SUCH AS UNIVISION AND PUEBLO HAVE PROVIDED IMPORTANT OUTLETS FOR VENEZUELAN PRODUCTS AND SIGNIFICANT ECONOMIC BENEFITS AND OPPORTUNITIES FOR VENEZUELAN BUSINESSES BOTH IN AND OUTSIDE OF THE ODC GROUP OUR JOINT VENTURES WITH DIFFERENT WORLD CLASS COMPANIES AND OTHER ACQUISITIONS THAT OPERATE SOLELY WITHIN VENEZUELA FURTHER CONFIRM OUR BELIEF IN THE VITALITY OF VENEZUELA AND ITS ECONOMY IT IS TRUE THAT WE ARE IN THE PROCESS OF SELLING COMPANIES IN VENEZUELA BUT WE ARE ALSO IN THE PROCESS OF ACQUIRING OTHER COMPANIES IN VENEZUELA AND WILL CONTINUE TO DO SO WE HAVE MORE THAN FIFTEEN JOINT VENTURES WITH MAJOR AMERICAN COMPANIES IN VENEZUELA THE MOST RECENT INCLUDE MOTOROLA AND SPRINT COMPLETED IN NINETEEN NINETY THREE SOON WE WILL OFFICIALLY ANNOUNCE A SUBSTANTIAL ADDITIONAL INVESTMENT IN VENEZUELA THIS MAKES IT CLEAR THAT FAR FROM DECIDING TO CUT ITS LOSSES WIPE THE SLATE CLEAN AND GET OUT OF VENEZUELA WE HAVE GREAT CONFIDENCE THAT THE CURRENT ECONOMIC DIFFICULTIES OF THE COUNTRY WILL BE OVERCOME AND THAT VENEZUELA AS WELL AS OUR BUSINESS ENTERPRISES LOCATED THERE WILL RESUME THE GROWTH AND DEVELOPMENT THAT BEGAN IN NINETEEN TWENTY NINE MY FATHER DIEGO CISNEROS BEGAN HIS FIRST COMPANY IN NINETEEN TWENTY NINE AND THEREAFTER DEVELOPED A VARIETY OF BUSINESSES IN FIELDS SUCH AS RETAILING THE MANUFACTURE OF CONSUMER GOODS AND TELEVISION AS HIS CHILDREN WE HAVE CONTINUED TO CARRY OUT HIS ENTREPRENEURIAL VISION BOTH WITHIN VENEZUELA AND ELSEWHERE THE ARTICLE SUGGESTS THAT SOME SHAREHOLDERS OF BANCO LATINO OWE THEIR SUCCESS TO THEIR POLITICAL CONNECTIONS BECOMING MULTIMILLIONAIRES PRACTICALLY OVERNIGHT FROM QUASI PUBLIC PROJECTS IN THE CASE OF THE CISNEROS FAMILY NOTHING COULD BE FURTHER FROM THE TRUTH WALTER V. SHIPLEY CHAIRMAN OF CHEMICAL BANKING CORPORATION ESTIMATED THAT THE NEW YORK BASED BANK HOLDING COMPANY WILL EARN ONE DOLLAR AND TWENTY CENTS TO ONE DOLLAR AND TWENTY FIVE CENTS A SHARE IN THE FIRST QUARTER AND FOUR DOLLARS AND NINETY CENTS TO SIX DOLLARS A SHARE FOR ALL OF NINETEEN NINETY FOUR CHEMICAL EARNED ONE DOLLAR AND THIRTY FIVE CENTS IN THE FIRST QUARTER OF NINETEEN NINETY THREE AND FIVE DOLLARS AND SEVENTY SEVEN CENTS FOR THE FULL YEAR THE FIRST QUARTER OF NINETEEN NINETY THREE INCLUDED A FOURTEEN CENT A SHARE GAIN FROM AN ACCOUNTING ADJUSTMENT IN A SPEECH AT AN AMERICAN BANKERS ASSOCIATION CONFERENCE IN NEW YORK CITY MR. SHIPLEY ALSO SAID THE FEDERAL RESERVE BOARD'S ACTION FRIDAY RAISING THE FEDERAL FUNDS' RATE AT WHICH BANKS LEND FUNDS TO EACH OTHER WOULDN'T SIGNIFICANTLY AFFECT CHEMICAL'S EARNINGS YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CHEMICAL CLOSED AT THIRTY SEVEN DOLLARS AND TWENTY FIVE CENTS UP TWENTY FIVE CENTS ON VOLUME OF ONE POINT EIGHT MILLION SHARES U. K. FOOD SUPPLIER DALGETY P. L. C. REPORTED NEARLY FLAT EARNINGS FOR ITS FISCAL FIRST HALF ENDED DECEMBER THIRTY FIRST AND MEANWHILE THE COMPANY CUT PRICES FOR INGREDIENTS SOLD TO SOME U. S. RESTAURANTS FOR THE HALF DALGETY REPORTED PRETAX PROFIT ROSE ZERO POINT FOUR PERCENT TO FIFTY SIX POINT FOUR MILLION POUNDS EIGHTY THREE POINT ONE MILLION DOLLARS FROM SIX POINT TWO MILLION POUNDS BUT EARNINGS PER SHARE DROPPED SEVEN PERCENT TO SEVENTEEN POINT TWO PENCE TWENTY FIVE POINT THREE CENTS FROM EIGHTEEN POINT FIVE PENCE DUE TO AN INCREASE IN ITS TAX RATE U. S. RETAILERS HAVE CALLED FOR PRICE CUTS SAID CHIEF EXECUTIVE RICHARD CLOTHIE DALGETY HAS NEGOTIATED PRICE CONCESSIONS WITH GROWING RESTAURANTS TO MAKE UP FOR LOWER PROFIT MARGINS WITH HIGHER SALES PROFIT IN DALGETY'S U. S. DISTRIBUTION UNIT MARTIN BROWER COMPANY HAS GROWN BUT NOT AS FAST AS SALES DALGETY SAID OPERATING PROFIT AT THE UNIT ROSE SIXTEEN PERCENT TO EIGHT POINT ONE MILLION POUNDS FOR THE SIX MONTHS SALES ROSE TWENTY FOUR PERCENT TO ONE POINT FOUR SIX BILLION POUNDS TWO POINT ONE FIVE BILLION DOLLARS U. S. BANKNOTE CORPORATION SAID IT RECEIVED AN EIGHTY THREE POINT SEVEN MILLION DOLLAR TWENTY MONTH CONTRACT TO PRINT FOOD STAMPS FOR THE U. S. DEPARTMENT OF AGRICULTURE INCLUDING A ONE YEAR RENEWAL OPTION UNDER TERMS OF THE CONTRACT WHICH RUNS THROUGH SEPTEMBER NINETEEN NINETY FIVE U. S. BANKNOTE IN NEW YORK WILL DESIGN DEVELOP AND TEST THE NEW FOOD STAMP WATERMARK FOR THE FEDERAL AGENCY IN NINETEEN NINETY THREE U. S. BANKNOTE WHICH ALSO PRINTS SECURITIES DOCUMENTS TRAVELERS CHECKS AND OTHER HIGH SECURITY DOCUMENTS DERIVED FORTY MILLION DOLLARS OR TWENTY PERCENT OF ITS ANNUAL REVENUE FROM ITS FOOD STAMP CONTRACT IN NEW YORK STOCK EXCHANGE LATE TRADING U. S. BANKNOTE GAINED TWENTY FIVE CENTS OR FIVE POINT SEVEN PERCENT TO CLOSE AT FOUR POINT SIX TWO FIVE DOLLARS A SHARE CINCINNATI BELL INCORPORATED REPORTED A ONE HUNDRED SIX POINT EIGHT MILLION DOLLAR FOURTH QUARTER LOSS AND REPEATED PREVIOUS FORECASTS THAT IT EXPECTS LOWER OPERATING EARNINGS IN THE FIRST QUARTER OF NINETEEN NINETY FOUR THE CINCINNATI BASED TELECOMMUNICATIONS COMPANY REPORTED A NET LOSS EQUAL TO ONE DOLLAR AND SIXTY NINE CENTS A SHARE FOR THE FOURTH QUARTER COMPARED WITH A YEAR EARLIER LOSS OF ONE POINT FOUR MILLION DOLLARS OR ONE CENT A SHARE REVENUE ROSE FOUR PERCENT TO TWO HUNDRED EIGHTY SEVEN POINT TWO MILLION DOLLARS FROM TWO HUNDRED SEVENTY SIX MILLION DOLLARS PRETAX CHARGES OF ONE HUNDRED TWO MILLION DOLLARS FOR RESTRUCTURING AND EXPECTED SALE AT A LOSS OF CBIS FEDERAL AN INFORMATION SERVICES BUSINESS HAD THE MOST SIGNIFICANT IMPACT ON FOURTH QUARTER RESULTS THE CBIS CHARGES REDUCED RESULTS IN THE QUARTER BY EIGHTY EIGHT MILLION DOLLARS OR ONE DOLLAR AND THIRTY NINE CENTS A SHARE CINCINNATI BELL SAID IN THE FOURTH QUARTER ITS MAIN OPERATING UNIT CINCINNATI BELL TELEPHONE HAD OPERATING PROFIT OF EIGHTEEN POINT THREE MILLION DOLLARS UP SEVENTEEN PERCENT FROM FIFTEEN POINT SIX MILLION DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CINCINNATI BELL SHARES FELL TWELVE POINT FIVE CENTS TO CLOSE AT SEVENTEEN POINT EIGHT SEVEN FIVE DOLLARS A SHARE U. S. HEALTHCARE INCORPORATED EXCEEDING ANALYSTS' EXPECTATIONS SAID THAT FOURTH QUARTER NET INCOME ROSE FIFTY THREE PERCENT AMID REDUCED MEDICAL COSTS THE BLUE BELL PENNSYLVANIA HEALTH MAINTENANCE ORGANIZATION REPORTED FOURTH QUARTER PROFIT OF NINETY ONE POINT TWO MILLION DOLLARS OR EIGHTY FOUR CENTS A SHARE WELL AHEAD OF ANALYSTS' EXPECTATIONS OF ABOUT SEVENTY THREE CENTS A SHARE A YEAR EARLIER U. S. HEALTHCARE HAD NET INCOME OF FIFTY NINE POINT SEVEN MILLION DOLLARS OR FIFTY FIVE CENTS A SHARE REVENUE FOR THE QUARTER ROSE NINETEEN PERCENT TO SIX HUNDRED EIGHTY POINT ONE MILLION DOLLARS FROM FIVE HUNDRED SEVENTY THREE POINT THREE MILLION DOLLARS COSTAS C. NICOLAIDES EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE COMPANY ATTRIBUTED THE ROBUST QUARTER TO THE COMPANY'S EFFORTS TO REDUCE MEDICAL COSTS AMONG HOSPITALS AND OTHER HEALTH CARE PROVIDERS ON THE NASDAQ STOCK MARKET SHARES OF U. S. HEALTHCARE CLOSED AT SIXTY TWO POINT ONE TWO FIVE DOLLARS OFF ONE POINT SIX TWO FIVE DOLLARS IN HEAVY TRADING A MOVE ANALYSTS ATTRIBUTED TO PROFIT TAKING AMONG INVESTORS WESTCOAST ENERGY INCORPORATED SAID IT PLANS TO SPEND ABOUT SEVENTY FOUR MILLION CANADIAN DOLLARS FIFTY FIVE POINT ONE MILLION DOLLARS THIS YEAR EXPANDING PARTS OF ITS BRITISH COLUMBIA GAS PIPELINE SYSTEM A SPOKESMAN FOR THE VANCOUVER BRITISH COLUMBIA PIPELINE AND GAS DISTRIBUTION COMPANY ESTIMATED THAT TWO PHASES OF THE PROJECT SLATED FOR COMPLETION BY YEAR END WILL COST FIFTY FIVE MILLION CANADIAN DOLLARS AND NINETEEN MILLION CANADIAN DOLLARS RESPECTIVELY WESTCOAST SAID IT PLANS TO BUILD THE NEW GAS TRANSPORTATION FACILITIES IN NORTHEASTERN BRITISH COLUMBIA NEAR A NUMBER OF LARGE RECENT NATURAL GAS DISCOVERIES WESTCOAST PLANS TO FILE A REGULATORY APPLICATION FOR THE EXPANSION WITHIN THE NEXT TWO WEEKS THE SPOKESMAN SAID LEGENT CORPORATION SAID A FEDERAL COURT IN VIRGINIA DISMISSED A SECURITIES CLASS ACTION LAWSUIT AGAINST THE MAINFRAME SOFTWARE CONCERN THE HERNDON VIRGINIA COMPANY AND SEVERAL OFFICERS AND DIRECTORS HAD BEEN SUED BY SHAREHOLDERS IN JULY THE SUIT ALLEGED THEY VIOLATED FEDERAL SECURITIES LAWS BY ISSUING FALSE AND MISLEADING STATEMENTS THE SUIT HAD BEEN FILED AFTER LEGENT PROJECTED LOWER EARNINGS FOR THE FISCAL THIRD QUARTER WHEN ANALYSTS HAD BEEN EXPECTING A HEALTHY INCREASE LEGENT SHARES IN JULY TRADED AS HIGH AS THIRTY SIX DOLLARS A SHARE AND AS LOW AS FIFTEEN DOLLARS AND FIFTY CENTS A SHARE LEGENT PRESIDENT AND CHIEF EXECUTIVE JOHN F. BURTON CALLED THE SUIT QUOTE TYPICAL QUOTE OF A TREND FOR SUITS TO BE FILED AGAINST COMPANIES WITH VOLATILE STOCK PRICES FOLLOWING A DECLINE IN THE STOCK PRICE WE HOPE OUR ACTIONS WILL ENCOURAGE OTHER COMPANIES TO STAND THEIR GROUND AGAINST THESE SUITS AND EVENTUALLY HELP REVERSE THIS TREND HE SAID AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S VENTURE CAPITAL ARM HAS TAKEN A SMALL EQUITY STAKE IN TOPOMETRIX CORPORATION THE MOVE IS PART OF A DEAL UNDER WHICH TOPOMETRIX WILL EXCLUSIVELY DEVELOP AND MARKET AN A. T. AND T. TECHNOLOGY FOR ULTRA POWERFUL MICROSCOPES BASED IN SANTA CLARA CALIFORNIA TOPOMETRIX A PRIVATELY HELD MICROSCOPE MAKER WILL LICENSE A. T. AND T. BELL LABORATORIES' PATENTS ON THE NEAR FIELD SCANNING OPTICAL MICROSCOPE IT ALSO WILL ACQUIRE AN A. T. AND T. COMPANY NANOVISION CORPORATION FORMED IN NINETEEN NINETY TWO TO COMMERCIALIZE THE INVENTION ALTHOUGH FINANCIAL TERMS OF THE DEAL WEREN'T DISCLOSED SHIRLEY CLAYTON TOPOMETRIX'S VICE PRESIDENT OF FINANCE SAID A. T. AND T. VENTURES WOULD END UP WITH A STAKE OF QUOTE SOMEWHAT LESS THAN TEN PERCENT QUOTE IN TOPOMETRIX NEAR FIELD SCANNING OPTICAL MICROSCOPES WHICH ARE OVER TEN TIMES MORE POWERFUL THAN OTHER OPTICAL MICROSCOPES ARE EXPECTED TO BE USED IN MAKING ADVANCED SEMICONDUCTORS MAPPING HUMAN GENES AND OTHER SCIENTIFIC FIELDS UNITED ASSET MANAGEMENT CORPORATION CITING RISING FEES AND CONTRIBUTIONS FROM ACQUISITIONS SAID IT EXPECTS TO REPORT A TWENTY SEVEN PERCENT TO TWENTY NINE PERCENT RISE IN FOURTH QUARTER NET INCOME ON A NINE PERCENT REVENUE GAIN WILLIAM H. PARK SENIOR VICE PRESIDENT SAID THE BOSTON MONEY MANAGEMENT COMPANY EXPECTS TO REPORT NET INCOME OF FOURTEEN POINT SIX MILLION DOLLARS TO FOURTEEN POINT EIGHT MILLION DOLLARS OR FORTY NINE CENTS TO FIFTY CENTS A SHARE FOR THE FOURTH QUARTER ON REVENUE OF ABOUT ONE HUNDRED EIGHTEEN MILLION DOLLARS IN THE YEAR EARLIER QUARTER UNITED ASSET HAD NET INCOME OF ELEVEN POINT FIVE MILLION DOLLARS OR FORTY FOUR CENTS A SHARE ON REVENUE OF ONE HUNDRED EIGHT MILLION DOLLARS RESULTS HAVE BEEN RESTATED TO REFLECT A POOLING OF INTERESTS FROM ACQUISITIONS UNITED ASSET OWNS THIRTY EIGHT MONEY MANAGEMENT UNITS WITH ONE HUNDRED FIVE BILLION DOLLARS IN ASSETS MR. PARK SAID THE QUARTER'S REVENUE INCREASED BECAUSE OF MARKET APPRECIATION MARKET PERFORMANCE COUPLED WITH CLIENT CONTRIBUTIONS TO PORTFOLIOS INCREASED TOTAL ASSETS TWELVE PERCENT TO EIGHTY FOUR BILLION DOLLARS AT DECEMBER THIRTY FIRST NINETEEN NINETY THREE FIVE ACQUISITIONS LAST YEAR AND TWO STARTUPS CONTRIBUTED THE BALANCE OF ASSET GAINS WHO'S NEWS MARTIN SINGERMAN SIXTY SEVEN WAS NAMED PUBLISHER OF NEWS CORPORATION'S NEW YORK POST NEWSPAPER HE SUCCEEDS PATRICK J. PURCELL WHO HAS AGREED TO PURCHASE THE BOSTON HERALD NEWSPAPER FROM NEWS CORPORATION MR. SINGERMAN A CONSULTANT TO NEWS CORPORATION WAS PRESIDENT AND CHIEF EXECUTIVE OF NEWS AMERICA PUBLISHING NEWS CORPORATION'S U. S. MAGAZINE AND NEWSPAPER PUBLISHING ARM FROM NINETEEN EIGHTY FIVE TO NINETEEN NINETY ONE MICHAEL NATHANSON THIRTY EIGHT WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF NEW REGENCY PRODUCTIONS A BURBANK CALIFORNIA MOVIE PRODUCTION COMPANY LAST MONTH HE RESIGNED AS EXECUTIVE VICE PRESIDENT OF SONY CORPORATION'S COLUMBIA PICTURES STUDIO BOB PFEIFER THIRTY EIGHT WAS NAMED EXECUTIVE VICE PRESIDENT AND HEAD OF WALT DISNEY COMPANY'S HOLLYWOOD RECORDS LABEL DISNEY WOULDN'T SAY WHETHER IT PLANS TO NAME A PRESIDENT OF THE LABEL A POST THAT HAS BEEN VACANT SINCE PETER PATERNO LEFT IN NOVEMBER WESLEY HEIN AN EXECUTIVE VICE PRESIDENT WHO HEADED HOLLYWOOD RECORDS SINCE NOVEMBER IS LEAVING THE COMPANY DISNEY SAID SONY ELECTRONICS INCORPORATED SAID IT WILL INTRODUCE A DEVICE THAT WILL AMONG OTHERS THINGS ALLOW MOTORISTS TO FIND DIRECTIONS WITHOUT HAVING TO ASK AT A GAS STATION THE ELECTRONICS CONCERN IN PARK RIDGE N. J. SAID THE DEVICE WHICH USES SATELLITE POSITIONING TECHNOLOGY WILL CONTAIN MAPS AND OTHER TRAVEL INFORMATION THAT CAN BE DISPLAYED ON A FIVE INCH COLOR SCREEN USING A SATELLITE NETWORK THE DEVICE CAN PINPOINT A DRIVER'S LOCATION AND SHOW THAT LOCATION IN RELATION TO THE PERSON'S INTENDED DESTINATION SONY SAID SONY ELECTRONICS A UNIT OF JAPAN'S SONY CORPORATION PLANS TO INTRODUCE THE DEVICE IN CALIFORNIA AND PARTS OF NEVADA IN THE SECOND HALF OF NINETEEN NINETY FOUR SIMILAR DEVICES HAVE BEEN AVAILABLE IN JAPAN FOR ABOUT TWO YEARS A SONY SPOKESMAN SAID AND SELL FOR ABOUT TWO THOUSAND FIVE HUNDRED DOLLARS PRICES FOR THE PLANNED U. S. VERSIONS HAVEN'T BEEN DECIDED HE SAID OTHER COMPANIES INCLUDING TRIMBLE NAVIGATION LIMITED OFFER SUCH SYSTEMS WITH DIFFERING CAPABILITIES RIVERWOOD INTERNATIONAL CORPORATION CITING CONTINUING DECLINES IN CONTAINERBOARD PRICES AND WEAK INTERNATIONAL DEMAND REPORTED A NET LOSS OF FOUR POINT SIX MILLION DOLLARS OR SEVEN CENTS A SHARE FOR ITS NINETEEN NINETY THREE FOURTH QUARTER COMPARED WITH NET INCOME OF EIGHT POINT TWO MILLION DOLLARS OR THIRTEEN CENTS A SHARE IN THE YEAR EARLIER QUARTER SALES FOR THE QUARTER SLID FOUR PERCENT TO TWO HUNDRED EIGHTY SIX POINT EIGHT MILLION DOLLARS FROM TWO HUNDRED NINETY NINE POINT FOUR MILLION DOLLARS FOR THE YEAR THE ATLANTA PAPERBOARD AND PACKAGING COMPANY REPORTED A PLUNGE IN NET INCOME TO ONE POINT ONE MILLION DOLLARS OR TWO CENTS A SHARE FROM FORTY THREE POINT EIGHT MILLION DOLLARS OR SEVENTY EIGHT CENTS A SHARE IN NINETEEN NINETY TWO AS SALES FOR THE YEAR REMAINED ESSENTIALLY FLAT AT ONE POINT ONE TWO BILLION DOLLARS RESULTS FOR BOTH THE QUARTER AND THE YEAR INCLUDED A TWENTY FIVE MILLION DOLLAR RESTRUCTURING CHARGE FROM EFFORTS TO CONSOLIDATE OPERATIONS OFFSET IN PART BY A SEVENTEEN MILLION DOLLAR GAIN ON THE SALE OF TIMBERLANDS RESULTS FOR THE YEAR ALSO INCLUDED A CHARGE OF TWO POINT ONE MILLION DOLLARS FROM RESTATING POST EMPLOYMENT BENEFITS UNDER NEW ACCOUNTING STANDARDS THE CLINTON ADMINISTRATION THINKS IT HAS SOLVED THE JOB TRAINING PUZZLE ARMED WITH A RAFT OF STUDIES ON HOW BEST TO FIND JOBS FOR INNER CITY POOR PEOPLE OUT OF WORK FACTORY WORKERS AND EVERYONE ELSE FROM THE ELDERLY TO NATIVE AMERICANS THE LABOR DEPARTMENT IS TRUMPETING ITS NEW METHODS GET TO THE UNEMPLOYED EARLIER TRAIN INNER CITY KIDS LONGER GET INNER CITY ADULTS BETTER JOB DATA IN THE PAST TWO THINGS HAVE BEEN MISSING FROM JOB TRAINING EFFORTS THE MONEY TO MAKE THINGS HAPPEN AND THE GUMPTION TO EXPAND SMALL PROGRAMS THAT WORK AND CUT ONES THAT DON'T THE ADMINISTRATION'S BUDGET THAT WAS RELEASED YESTERDAY WOULD GO A LONG WAY TOWARD SOLVING THE FIRST PROBLEM WHILE FUNDS FOR DISCRETIONARY FEDERAL PROGRAMS ARE BEING SLASHED ACROSS THE GOVERNMENT THE LABOR DEPARTMENT'S EMPLOYMENT AND TRAINING BUDGET WOULD JUMP A HUGE SEVENTEEN PERCENT TO SEVEN POINT FOUR BILLION DOLLARS AT THE CORE OF THE NEW TRAINING MONEY WOULD BE A THIRTY ONE PERCENT BOOST FOR HELPING QUOTE DISLOCATED WORKERS QUOTE OFTEN MIDDLE CLASS PEOPLE WHO HAVE LOST THEIR JOBS BECAUSE OF TECHNOLOGY CORPORATE RESTRUCTURING MILITARY CUTBACKS AND INTERNATIONAL TRADE AT THE SAME TIME PROGRAMS FOR THE INNER CITY POOR WOULD RISE THIRTEEN PERCENT MORE THAN FOUR TIMES THE PROJECTED RATE OF INFLATION WITHIN THOSE MAJOR AREAS THE LABOR DEPARTMENT IS USING A RAFT OF STUDIES AS GUIDEPOSTS FOR HOW TO TARGET THE FUNDS FOR THE INNER CITY POOR A LARGE BOOST WOULD GO TO JOB CORPS A PROGRAM THAT TAKES CITY KIDS OUT OF THEIR NEIGHBORHOODS AND PLACES THEM IN A MILITARY STYLE ENVIRONMENT FOR AS MUCH AS TWO YEARS THE PROGRAM IS A WINNER SAYS LABOR SECRETARY ROBERT REICH WHO WANTS TO SEE THE JOB CORPS BUDGET INCREASE ELEVEN PERCENT SIMILARLY THE ADMINISTRATION WOULD INCREASE SPENDING ON YOUTH SUMMER JOBS BY ONE HUNDRED SIXTY EIGHT MILLION DOLLARS TO ONE POINT OH SIX BILLION DOLLARS AND TRIPLE SPENDING TO ONE HUNDRED FIFTY MILLION DOLLARS FOR A PROGRAM THAT WOULD HELP LINK HIGH SCHOOLERS TO JOBS IF THEY DON'T GO ON TO COLLEGE AT THE SAME TIME THE ADMINISTRATION WANTS TO SLASH BY NINE PERCENT OR SIXTY MILLION DOLLARS SPENDING ON SHORT TERM TRAINING FOR POOR YOUTHS A THIRTY MONTH STUDY RECENTLY COMPLETED SHOWED THAT YOUTHS USING THE PROGRAM ACTUALLY EARNED LESS THAN A CONTROL GROUP WE HAVE TO MOVE DOLLARS TOWARD THOSE EFFORTS THAT HAVE DEMONSTRATED EFFECTIVENESS SAID DOUGLAS ROSS MR. REICH'S POINT MAN FOR JOB TRAINING THE PROOF HE CONTENDS IS IN THE STUDIES TAKE FOR EXAMPLE A NEW JERSEY PILOT PROGRAM THAT SHOWED PEOPLE GET OFF UNEMPLOYMENT EARLIER IF AUTHORITIES TARGET TRAINING FUNDS TO WORKERS WHO MOST NEED HELP IN THE NEW JERSEY PROGRAM OFFICIALS DISTINGUISHED BETWEEN WORKERS WHO WERE TEMPORARILY LAID OFF AND THOSE WHO ARE PERMANENTLY DISMISSED THE LATTER GROUP GOT MOST TRAINING FUNDS AND THE HELP REACHED THEM MORE QUICKLY PROFILING UNEMPLOYED WORKERS AS THE NEW JERSEY PRACTICE IS KNOWN HAS SINCE GONE NATIONAL IN AN INTERVIEW MR. REICH SAID THE AGENCY HE INHERITED WAS NOT JUST A BACKWATER BUT A BACKWATER WITHIN A BACKWATER BUT ALL IT NEEDED WAS TO BE REINVIGORATED TO FIND THE BETTER IDEAS HE SAID THERE'S NO MAGIC IN LISTENING TO EMPLOYEES WHO HAVE GOOD IDEAS MR. REICH SAID BUT SOME PEOPLE ARE SKEPTICAL QUOTE THERE IS NO SOLUTION IN WHAT THEY HAVE FOUND QUOTE ARGUES STEVEN HOFMAN FORMER ASSISTANT SECRETARY AT THE BUSH LABOR DEPARTMENT THEY HAVE DROPPED ANY ATTEMPT TO MAKE THE LOCAL TRAINING PROVIDERS ACCOUNTABLE FOR RESULTS UNTIL YOU MAKE THEM ACCOUNTABLE THEY WILL CONTINUE TO TRAIN PEOPLE FOR JOBS THAT DON'T EXIST AMID THE YO YOING STOCK MARKET THE COUNTRY'S MOST CELEBRATED MUTUAL FUND MANAGERS SAY THERE ARE PLENTY OF STOCKS THAT STILL LOOK EXPENSIVE AND MUCH THAT WORRIES THEM MEANWHILE THEY'RE BUYING SO FAR THEIR ACTIONS HAVE BEEN MORE ON THE MONEY THAN THEIR WORDS AS THE DOW JONES INDUSTRIAL AVERAGE HAS ALREADY RECOVERED MORE THAN A THIRD OF THE GROUND IT LOST IN FRIDAY'S TUMBLE QUOTE FRIDAY'S ACTION IS REALLY AN INSIGNIFICANT LITTLE JIGGLE ON THE LONG TERM STOCK CHART QUOTE SAYS JEFF VINIK MANAGER OF THE THIRTY FOUR BILLION DOLLAR FIDELITY MAGELLAN FUND THE COUNTRY'S LARGEST MUTUAL FUND IT WAS ONLY A TWO PERCENT DROP ALL THE MARKET DID WAS GIVE BACK SOME OF JANUARY'S GAINS STILL HE SAYS I CONTINUE TO BELIEVE THAT NINETEEN NINETY FOUR IS GOING TO BE A DIFFICULT YEAR FOR INVESTORS SO IS MR. VINIK SELLING STOCK NOT QUITE BOTH FRIDAY AND YESTERDAY I'VE BEEN MORE ON THE BUY SIDE THAN ON THE SELL SIDE HE SAYS IN RECENT DAYS HE'S BEEN ADDING TO EXISTING POSITIONS HE'S ALSO BEEN VENTURING INTO FINANCIAL STOCKS INCLUDING INSURERS ON THE BELIEF THAT THEIR RECENT BEATING MAKES THEM GOOD VALUES JOHN NEFF MANAGER OF THE ELEVEN POINT ONE BILLION DOLLARS VANGUARD SLASH WINDSOR FUND ALSO SOUNDS CAUTIOUS EVEN AS HE BUYS YOU JUST DON'T KEEP MOVING UP FOREVER WITHOUT SOME INDIGESTION ALONG THE WAY HE SAYS QUOTE AT SOME POINT YOU'RE GOING TO GET A CORRECTION AND MAYBE THIS IS IT QUOTE NONETHELESS MR. NEFF USED THE MARKET DROP TO ADD TO HIS STAKE IN BANK AND OIL STOCKS WHEN STOCK PRICES FALL YOU HAVE TO STEP UP AND BUY IF YOU HAVE A CONSISTENT BONE IN YOUR BODY HE SAYS VANGUARD SLASH WINDSOR'S BIGGEST POSITIONS INCLUDE AETNA LIFE AND CASUALTY ALUMINUM COMPANY OF AMERICA BANKERS TRUST NEW YORK BURLINGTON RESOURCES CIGNA AND CITICORP BUT MR. NEFF ALSO HAS MORE THAN TWENTY PERCENT OF HIS FUND'S ASSETS IN CASH THE MOST HE ALLOWS HIS BIGGEST CONCERN IS INFLATION WHICH HE SAYS COULD RISE TO THREE POINT FIVE PERCENT OR FOUR PERCENT INFLATION IS ONE BOGEYMAN I SEE HE SAYS BUT THERE ARE TEN OTHER THINGS THAT COULD JAR PEOPLE EXPECTATIONS ARE SO HIGH MR. NEFF HAS LATELY BEEN TRIMMING HIS HOLDINGS OF EUROPEAN CYCLICAL STOCKS WHICH HAVE RISEN SHARPLY IN ANTICIPATION OF AN ECONOMIC RECOVERY AND HE WORRIES THAT U. S. CYCLICALS MAY BE A LITTLE BIT AHEAD OF THEMSELVES THAT SENTIMENT IS ECHOED BY JAMES CRAIG MANAGER OF THE NINE POINT FOUR BILLION DOLLARS JANUS FUND MR. CRAIG IS AVOIDING EUROPEAN CYCLICAL STOCKS AND SOME OF THE MORE HIGHLY CYCLICAL U. S. STOCKS SUCH AS THE PAPER COMPANIES AND THE STEEL MAKERS QUOTE I DO HAVE A BIG POSITION IN GENERAL MOTORS I THINK IT'S A ONCE IN A LIFETIME TURNAROUND HE SAYS BUT I'M REALLY LOOKING AT CHEAP GROWTH INCLUDING MATTEL PEPSICO PRICE SLASH COSTCO AND WAL MART STORES HE ADDS MR. CRAIG SAYS THE KEY TO A STOCK'S PERFORMANCE IS ITS EARNINGS GROWTH AND THAT'S WHY HE'S STICKING WITH STEADY GROWTH COMPANIES MANY OF WHICH HAVE BEEN BEATEN DOWN DURING THE PAST TWO YEARS I THINK THE STEADY PREDICTABLE GROWTH COMPANIES ARE THE BEST PLACE TO BE RIGHT NOW HE SAYS MR. CRAIG'S SEARCH FOR GROWTH LED HIM YESTERDAY TO BOOST HIS POSITION IN TWO SWISS BANKS SWISS BANK CORPORATION AND UNION BANK OF SWITZERLAND THESE COMPANIES ARE IN THE MIDDLE OF A BIG EARNINGS SURGE HE SAYS THEY'RE AMONG THE CHEAPEST BANKS IN EUROPE YET THEY'RE AMONG THE HIGHEST QUALITY IN THE WORLD JANUS FUND HAS SIXTEEN PERCENT OF ITS ASSETS IN FOREIGN STOCKS SIXTY FOUR PERCENT IN U. S. STOCKS AND A HEFTY TWENTY PERCENT IN CASH MR. CRAIG ISN'T ENTIRELY UNHAPPY ABOUT THE RECENT TURMOIL IN THE MARKETS QUOTE I WELCOME THE RETURN OF SOME VOLATILITY QUOTE HE SAYS PEOPLE DON'T LIKE IT BUT IT DOES HAVE A BENEFIT VOLATILITY IS GOOD FOR MUTUAL FUND MANAGERS ON AN EXECUTION BASIS BECAUSE IT MAKES IT EASIER TO BUY AND SELL THINGS FOR MANAGER G. KENNETH HEEBNER THE FEDERAL RESERVE'S DECISION LAST WEEK TO MAKE A PRE EMPTIVE STRIKE AGAINST INFLATION BY NUDGING UP SHORT TERM INTEREST RATES MERELY AFFIRMS WHAT HE ALREADY SEES A BOOMING ECONOMY SUCH AN ENVIRONMENT SHOULD TRANSLATE INTO BIG EARNINGS GAINS FOR CYCLICAL COMPANIES SAYS MR. HEEBNER MANAGER OF C. G. M. CAPITAL DEVELOPMENT FUND HE'S A BIG INVESTOR IN FIRMS SUCH AS BETHLEHEM STEEL CATERPILLAR CHRYSLER DEERE FORD MOTOR G. M. AND U. A. L. WHICH ARE ESPECIALLY SENSITIVE TO ECONOMIC UPS AND DOWNS HE SEES NO REASON TO ALTER HIS STANCE AFTER FRIDAY'S DROP I JUST THINK THERE'S A LOT OF OPPORTUNITY IN CYCLICAL STOCKS BUT LIKE THE OTHER TOP MANAGERS INTERVIEWED FOR THIS ARTICLE MR. HEEBNER SEES PLENTY OF STOCKS HE DOESN'T LIKE HE BELIEVES THE MARKET'S MOST VULNERABLE COMPANIES CAN BE FOUND IN THE EMERGING GROWTH SECTOR INCLUDING HIGH FLYING RESTAURANT AND RETAILING STOCKS C. G. M. CAPITAL DEVELOPMENT WHICH IS CLOSED TO NEW INVESTORS RANKS AS THE FUND INDUSTRY'S SECOND BEST PERFORMING FUND DURING THE PAST TEN YEARS MR. HEEBNER IS ALSO MANAGER OF C. G. M. MUTUAL FUND A BALANCED FUND WHICH OWNS A MIXTURE OF STOCKS AND BONDS AND WHICH IS STILL OPEN TO NEW INVESTORS IN C. G. M. MUTUAL I HAVE MADE A MAJOR SHIFT FROM GOVERNMENT BONDS TO INDUSTRIAL CORPORATES WITH LOW CREDIT RATINGS HE SAYS QUOTE I'VE BOUGHT COMPANIES WHERE I THINK THERE WILL BE A LOT OF IMPROVEMENT IN THEIR CREDIT RATINGS BASED ON THE STRENGTH OF THE ECONOMY I DON'T THINK LONG TERM INTEREST RATES ARE GOING TO GO UP A LOT BUT EVEN IF INTEREST RATES DO RISE CAUSING BOND PRICES TO FALL MR. HEEBNER EXPECTS THAT UPGRADES IN THE CREDIT RATINGS OF HIS BONDS WILL PRODUCE ENOUGH GAINS TO OFFSET THE DAMAGE C. G. M. MUTUAL OWNS HIGH YIELD JUNK BONDS ISSUED BY DELTA AIR LINES U. A. L. AND WHEELING PITTSBURGH JOHN TEMPLETON THE LEGENDARY MUTUAL FUND MANAGER WHO RETIRED A YEAR AGO HAS LONG BEEN A STOCK MARKET CHEERLEADER BUT EVEN HE IS ONLY FORECASTING MODERATE GAINS FOR STOCKS IN THE YEARS AHEAD WE'RE NO LONGER STARTING FROM A LOW POINT SO THE FUTURE GROWTH IS LIKELY TO BE LESS SPECTACULAR THAN IT WAS IN THE NINETEEN EIGHTIES HE SAYS THE CHANCES ARE AS GOOD AS EVEN THAT SOMETIME BY THE END OF THE YEAR TWO THOUSAND WE WILL SEE THE DOW AT SIX THOUSAND I'M NOT STICKING MY NECK OUT MUCH TO SAY THAT BECAUSE IN AMERICAN HISTORY STOCKS HAVE DOUBLED EVERY ELEVEN YEARS THE EIGHTY ONE YEAR OLD MR. TEMPLETON WHO NOW DEVOTES HIMSELF TO CHURCH AND CHARITIBLE WORK SAYS HE'S NOT MAKING ANY CHANGES IN HIS PERSONAL PORTFOLIO FOLLOWING FRIDAY'S MARKET DROP IN ALL MY FIFTY FOUR YEARS IN THE INVESTMENT BUSINESS I HAVE NEVER THOUGHT I COULD DETERMINE WHERE BEAR MARKETS STARTED AND STOPPED HE SAYS BUT WHILE MR. TEMPLETON DECLINES TO MAKE SHORT TERM MARKET PREDICTIONS HE SAYS THE FUNDAMENTALS OF AMERICAN BUSINESS ARE GOOD QUOTE THE PROBABILITIES ARE THAT AMERICAN STOCKS THIS YEAR WILL PAY THE HIGHEST DIVIDENDS THEY HAVE EVER PAID AND HAVE THE HIGHEST EARNINGS THEY HAVE EVER HAD FINALLY THERE AREN'T ANY SIGNS OF A BUSINESS RECESSION HE SAYS THOSE ARE THREE INDICATORS OF BASIC VALUE ALL OF WHICH ARE OPTIMISTIC SEVERAL PHAR MOR INCORPORATED DIRECTORS AND OTHER SHAREHOLDERS COULD BE FORCED TO REPAY ABOUT SEVENTY FIVE MILLION DOLLARS THAT THEY RECEIVED FROM THE DEEP DISCOUNT RETAILER IN A NINETEEN NINETY ONE STOCK BUYBACK LAST MONTH A COURT APPOINTED EXAMINER IN PHAR MOR'S CHAPTER ELEVEN BANKRUPTCY LAW CASE SAID THE CLOSELY HELD YOUNGSTOWN OHIO COMPANY WAS INSOLVENT WHEN IT BOUGHT BACK THE SHARES THE SEVENTY FIVE MILLION DOLLARS HAD BEEN INVESTED IN PHAR MOR IN NINETEEN NINETY ONE BY CORPORATE PARTNERS L. P. AN INVESTMENT FUND AFFILIATED WITH LAZARD FRERES AND COMPANY FOR USE IN STOCK BUYBACKS STUART HERTZBERG AN ATTORNEY FOR THE UNSECURED CREDITORS' COMMITTEE IN THE CASE SAID HE WILL CONSULT WITH PHAR MOR MANAGEMENT ABOUT TRYING TO RECOVER THE MONEY ACCORDING TO LEGAL SCHOLARS IT'S POSSIBLE UNDER SOME FEDERAL AND STATE LAWS TO RESCIND SUCH A REPURCHASE TRANSACTION IF IT TOOK PLACE WHEN A COMPANY WAS INSOLVENT UNDER CORPORATE LAW INSOLVENCY MEANS AN INABILITY TO PAY DEBTS WHEN THEY COME DUE IN THE ORDINARY COURSE OF BUSINESS OR HAVING LIABILITIES GREATER THAN ASSETS PROPERLY VALUED BANKRUPTCY LAW GIVES THE DEBTOR THE FIRST OPTION TO PURSUE SUCH AN ACTION QUOTE AS FAR AS THE SEVENTY FIVE MILLION DOLLARS WE ARE TRYING TO DETERMINE WHAT KINDS OF ACTIONS WE FEEL ARE APPROPRIATE QUOTE MR. HERTZBERG SAID HE ADDED THAT THERE ALSO MAY BE PROFITS TO RECOVER FROM SHAREHOLDERS INCLUDING PHAR MOR CHAIRMAN DAVID SHAPIRA AND SEVERAL DIRECTORS ON STOCK OPTION TRANSACTIONS THAT ACCORDING TO THE EXAMINER'S REPORT OCCURRED AFTER THE OPTIONS EXPIRED MOREOVER IF CREDITORS DON'T PURSUE ACTIONS TO RECOVER THE MONEY JUDGE WILLIAM T. BODOH THE BANKRUPTCY COURT JUDGE OVERSEEING THE PHAR MOR CASE IN YOUNGSTOWN IS EXPECTED TO AUTHORIZE A COURT APPOINTED EXAMINER TO DO SO ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION JUDGE BODOH DECLINED TO COMMENT THE U. S. ATTORNEY IN CLEVELAND IS ALSO UNDERSTOOD TO BE PLANNING A CRIMINAL INVESTIGATION OF THE STOCK OPTION TRANSACTIONS JOHN D. SAMMON ASSISTANT U. S. ATTORNEY ALSO DECLINED TO COMMENT DAVID ARMSTRONG ATTORNEY FOR MR. SHAPIRA SAID HIS CLIENT SHOULDN'T HAVE TO RETURN THE MONEY HE RECEIVED IN THE STOCK BUYBACK BECAUSE PHAR MOR WASN'T INSOLVENT AT THAT TIME IT WAS PAYING ITS BILLS AS THEY BECAME DUE IN AUGUST NINETEEN NINETY TWO PHAR MOR FILED FOR BANKRUPTCY LAW PROTECTION AFTER DISCLOSING IT WAS THE TARGET OF A FRAUD AND EMBEZZLEMENT SCHEME BY SEVERAL EXECUTIVES THE FRAUD CAME TO MORE THAN FIVE HUNDRED MILLION DOLLARS AND SUBSEQUENT ACCOUNTING ADJUSTMENTS TOTALED ANOTHER APPOXIMATELY FIVE HUNDRED MILLION DOLLARS ACCORDING TO THE COURT REPORT WHICH WAS WRITTEN BY EXAMINER JAY ALIX MICHAEL I. MONUS PHAR MOR'S CO FOUNDER AND FORMER PRESIDENT WAS INDICTED ON ONE HUNDRED TWENTY NINE FEDERAL COUNTS AND FACES TRIAL TWO FORMER EXECUTIVES PATRICK FINN AND JEFFREY WALLEY HAVE PLEADED GUILTY TO FEDERAL CHARGES AND ARE COOPERATING WITH AUTHORITIES ACCORDING TO THE ALIX REPORT MR. SHAPIRA AND SEVERAL OTHER DIRECTORS EXERCISED OPTIONS TO BUY PHAR MOR STOCK IN SEPTEMBER NINETEEN NINETY EVEN THOUGH THE OPTIONS HAD EXPIRED IN JUNE OF THAT YEAR THE REPORT SAYS PROMISSORY NOTES WERE DATED TO SUGGEST THEY HAD BEEN EXERCISED IN JUNE LESS THAN A YEAR LATER SOME OF THAT STOCK WAS SOLD BACK TO PHAR MOR WHICH DREW ON CORPORATE PARTNERS' SEVENTY FIVE MILLION DOLLAR INVESTMENT ACCORDING TO THE REPORT MR. SHAPIRA AND OTHER DIRECTORS SOLD SHARES BACK TO THE COMPANY IN NINETEEN NINETY ONE FOR TWENTY FOUR DOLLARS AND FORTY FOUR CENTS A SHARE FOR A PROFIT OF THIRTEEN DOLLARS AND FORTY FOUR CENTS A SHARE THE REPORT SAYS MR. SHAPIRA WHO WASN'T FOUND TO BE INVOLVED IN THE FRAUD BY THE COURT EXAMINER HAS SAID THE BOARD WAS TOLD BY ITS OUTSIDE ACCOUNTANTS AND ATTORNEYS THAT IT WAS PROPER TO EXERCISE THE OPTIONS AFTER THEY HAD EXPIRED MR. ARMSTRONG HIS ATTORNEY SAID THE PROFITS WERE INSIGNIFICANT GIVEN THE AMOUNT OF MONEY MR. SHAPIRA AND OTHER DIRECTORS LOST WHEN PHAR MOR FILED FOR CHAPTER ELEVEN HOWEVER ACCORDING TO RONALD COFFEE A LAW PROFESSOR AT CASE WESTERN RESERVE UNIVERSITY THE STOCK OPTION TRANSACTIONS MIGHT VIOLATE STATE CORPORATION LAWS COVERING THE DUTIES OF DIRECTORS OR THE ISSUANCE OF OPTIONS IF THESE OPTIONS ARE TRULY INVALID THAT IS TO SAY EXPIRED THEN IT SEEMS TO ME THERE MIGHT BE BREACH OF PERFORMANCE OBLIGATIONS ON THE PART OF THE DIRECTORS MR. COFFEE SAID MOREOVER THERE MIGHT BE A VIOLATION OF FEDERAL SECURITIES LAWS HE ADDED IF THE OPTIONS WERE EXERCISED AND THE STOCK REPURCHASED BY PHAR MOR UNDER CONDITIONS WHERE INDEPENDENT CORPORATE DECISION MAKERS WERE NOT FULLY INFORMED SEPARATELY PEOPLE CLOSE TO THE U. S. ATTORNEY'S OFFICE IN CLEVELAND SAID THE GOVERNMENT PLANS TO INVESTIGATE WHETHER NATHAN MONUS FATHER OF MICKAEL MONUS PROFITED AT PHAR MOR'S EXPENSE WHEN HE WAS A DIRECTOR MR. SAMMON THE ASSISTANT U. S. ATTORNEY HAD NO COMMENT ON THE MATTER THE ALIX REPORT SAID NATHAN MONUS HELD PAID POSITIONS WITH COMPANIES THAT SUPPLIED PHAR MOR WHILE HE WAS A DIRECTOR AND MAY HAVE TAKEN PART IN TRANSACTIONS THAT BENEFITED HIM AT THE COMPANY'S EXPENSE SAUL EISEN ATTORNEY FOR NATHAN MONUS WHO IS IN HIS EARLY SEVENTIES SAID NATE EMPHATICALLY DENIES ANY IMPROPRIETY WE BELIEVE THAT THE PHAR MOR DIRECTORS KNEW OF NATE'S OUTSIDE INTERESTS QUOTE TODAY THE NATIONAL ASSESSMENT GOVERNING BOARD IS LIKELY TO BE SHOT THROUGH THE HEART BY A VENGEFUL HOUSE EDUCATION AND LABOR COMMITTEE THE BOARD'S SIN INSISTING THAT THE NATION'S MOST IMPORTANT TEST OF STUDENT ACHIEVEMENT AND SCHOOL PERFORMANCE BE CONSTRUCTED AND ITS RESULTS REPORTED AROUND CLEAR STANDARDS OF WHAT AMERICAN YOUNGSTERS OUGHT TO KNOW AND BE ABLE TO DO BUT STANDARDS TESTS AND ACCOUNTABILITY ARE KEYS TO EDUCATION REFORM HOW ARE OUR CHILDREN AND SCHOOLS DOING COMPARED WITH HOW THEY OUGHT TO BE DOING COMPARED WITH THOSE IN THE NEXT STATE WITH FIVE YEARS AGO PARENTS VOTERS GOVERNORS LEGISLATORS AND BUSINESS LEADERS APPRECIATE THE IMPORTANCE OF SUCH INFORMATION SO DO MANY EDUCATORS YET POLITICAL ALLIES OF THE SCHOOL ESTABLISHMENT DO THEIR BEST TO ELIMINATE ALL WHO WOULD SUPPLY SUCH DATA THE BOARD CAME INTO EXISTENCE SIX YEARS AGO THE PRODUCT OF A RARE BIPARTISAN CONSENSUS THOUGH THE NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS N. A. E. P. HAD BEEN AROUND SINCE THE NINETEEN SIXTIES THE ACCOUNTABILITY SHY SCHOOL ESTABLISHMENT HAD INSISTED THAT TEST RESULTS BE KEPT OPAQUE OUT OF DATE UNAVAILABLE FOR INDIVIDUAL STATES AND COMMUNITIES AND DIVORCED FROM ANY NORMS OR STANDARDS THE DATA PRODUCED WITHIN THESE STRICTURES WERE SOUND BUT THEIR MAIN USERS WERE SCHOLARS AND POLICY WONKS NOT PARENTS AND IN THE ABSENCE OF NATIONAL BENCHMARKS NEARLY EVERY STATE AND LOCALITY BLITHELY REPORTED THAT ITS STUDENTS WERE SCORING QUOTE ABOVE AVERAGE QUOTE ON WHATEVER TESTS IT USED BY THE MID NINETEEN EIGHTIES ACUTE ANXIETY ABOUT THE NATION'S MEDIOCRE EDUCATIONAL PERFORMANCE HAD CREATED AN APPETITE FOR FASTER AND MORE USEFUL TEST RESULTS ANCHORED TO AN UNBIASED JUDGMENT ABOUT HOW GOOD IS GOOD ENOUGH EDUCATION SECRETARY WILLIAM BENNETT APPOINTED A BLUE RIBBON COMMITTEE TO CONSIDER N. A. E. P.'S FUTURE IT INCLUDED TWO WELL KNOWN STATE LEVEL EDUCATION REFORMERS OF THE DAY HILLARY RODHAM CLINTON OF ARKANSAS AND LAMAR ALEXANDER OF TENNESSEE THAT PANEL RECOMMENDED THAT N. A. E. P. BE EXPANDED AND ACCELERATED THAT STATE LEVEL DATA BE ROUTINELY PROVIDED AND THAT AN INDEPENDENT GOVERNING BOARD BE CREATED TO SET ITS POLICIES IT WAS VITAL THE PANEL INSISTED THAT THE NATION'S REPORT CARD NOT BE ENTRUSTED TO BUREAUCRATS OR COLORED BY THE POLITICAL NEEDS OF ANY ADMINISTRATION THE TWENTY FOUR MEMBER GOVERNING BOARD DEBUTED IN LATE NINETEEN EIGHTY EIGHT ITS MEMBERSHIP IS VARIED BIPARTISAN AND ESPECIALLY SENSITIVE TO STATE CONCERNS TWO GOVERNORS TWO LEGISLATORS TWO STATE SCHOOL SUPERINTENDENTS AND AN ARRAY OF TEACHERS LOCAL SCHOOL OFFICIALS TESTING EXPERTS BUSINESS LEADERS AND PUBLIC REPRESENTATIVES THEY'RE APPOINTED BY THE SECRETARY OF EDUCATION FROM CANDIDATES PROPOSED BY THE BOARD ITSELF SERVED BY A SMALL EXPERT STAFF THIS IS A BOARD RARE IN WASHINGTON THAT MAKES DECISIONS BUREAUCRATS MUST HEED AND IS NOT OBLIGED TO TRIM ITS SAILS TO EVERY POLITICAL BREEZE IT HAS PROVED TO BE BOTH TOUGH AND IMPARTIAL WHEN FOR INSTANCE AN ELECTION MINDED BUSH ADMINISTRATION PRESSED FOR PREMATURE RELEASE OF SOME N. A. E. P. DATA THE BOARD SLAPPED THE WHITE HOUSE'S HAND SUCH INDEPENDENCE OF COURSE IS PART OF THE REASON THAT SEVERAL HOUSE STAFFERS AND THEIR EMPLOYERS SET ABOUT TO KILL THE BOARD QUIETLY CONNIVING WITH THE SENIOR CAREERISTS WHO WOULD CONTROL N. A. E. P. IF THERE WERE NO BOARD THEY DRAFTED A MEASURE TO TERMINATE THIS SOMETIMES FEISTY PANEL ERASING THE BOARD IS THE SUREST WAY TO REPEAL ITS MOST IMPORTANT ACTION ONE THAT NEVER SAT WELL WITH OLD STYLE LIBERALS PARTS OF THE SCHOOL ESTABLISHMENT AND ANTI TESTING ADVOCACY GROUPS THE DECISION TO ORGANIZE N. A. E. P. AROUND CLEAR STANDARDS OF WHAT YOUNG AMERICANS SHOULD KNOW AND BE ABLE TO DO AMID THE MANY TESTS ON THE MARKET ONLY N. A. E. P. WHEN REPORTED ACCORDING TO SUCH STANDARDS PERMITS COMPARISONS OF PERFORMANCE AMONG STATES AND TRACKS CHANGES HERE ARE TWO EXAMPLES FROM THE NINETEEN NINETY TWO ASSESSMENT MATH AFTER AN ELABORATE CONSENSUS PROCESS INVOLVING HUNDREDS OF EDUCATORS AND LAYMEN THE BOARD CONCLUDED THAT EIGHTH GRADERS PROFICIENT IN MATH SHOULD APPLY MATHEMATICAL CONCEPTS AND PROCEDURES CONSISTENTLY TO COMPLEX PROBLEMS UNDERSTAND THE CONNECTIONS BETWEEN FRACTIONS PERCENTS DECIMALS AND OTHER MATHEMATICAL TOPICS SUCH AS ALGEBRA AND FUNCTIONS HAVE A THOROUGH UNDERSTANDING OF BASIC LEVEL ARITHMETIC OPERATIONS MAKE INFERENCES FROM DATA AND GRAPHS AND APPLY PROPERTIES OF INFORMAL GEOMETRY HOW MANY EIGHTH GRADERS IN PUBLIC SCHOOL ACTUALLY REACHED THAT LEVEL IN NINETEEN NINETY TWO THE ANSWER WAS TWENTY FIVE PERCENT FOR THE NATION AS A WHOLE COMPARED WITH TWENTY PERCENT TWO YEARS EARLIER IN MINNESOTA AND IOWA PROFICIENCY RATES REACHED THIRTY SEVEN PERCENT WHILE IN GEORGIA AND HAWAII THEY WERE ONLY SIXTEEN PERCENT AND SO FORTH READING AFTER A SIMILAR CONSULTATIVE PROCESS THE BOARD DETERMINED THAT PROFICIENT FOURTH GRADE READERS SHOULD DEMONSTRATE AN OVERALL UNDERSTANDING OF THE TEXT BY MAKING INFERENCES DRAWING REASONABLE CONCLUSIONS AND RECOGNIZING RELATIONSHIPS SUCH AS CAUSE AND EFFECT NATIONWIDE TWENTY FIVE PERCENT OF FOURTH GRADERS REACHED THAT LEVEL IN NINETEEN NINETY TWO INCLUDING SEVEN PERCENT OF BLACK YOUNGSTERS THIRTEEN PERCENT OF HISPANICS TWENTY ONE PERCENT OF ASIANS AND THIRTY ONE PERCENT OF WHITES PRIVATE SCHOOL PUPILS DID SOMEWHAT BETTER THAN PUBLIC AND GIRLS OUTSCORED BOYS EVEN IN QUOTE ADVANTAGED QUOTE SUBURBAN SCHOOLS HOWEVER FEWER THAN HALF THE STUDENTS MET THIS STANDARD NOW THE LEGISLATIVE CYCLE PRESENTS A CHANCE TO SHOOT THE MESSENGER NEVER MIND THAT FOR THE REST OF THE DECADE AT LEAST WE WILL HAVE NO OTHER PRACTICAL WAY TO MONITOR PROGRESS TOWARD THE AMBITIOUS TARGETS SET BY THE PRESIDENT AND GOVERNORS NEVER MIND THAT THERE'S NO OTHER WAY TO FULFILL MR. CLINTON'S STATE OF THE UNION CHALLENGE TO MEASURE EVERY SCHOOL BY ONE HIGH STANDARD ARE OUR CHILDREN LEARNING WHAT THEY NEED TO KNOW TO COMPETE AND WIN IN THE GLOBAL ECONOMY CAN A FEW VETERAN HOUSE STAFFERS TERRITORIAL CIVIL SERVANTS PERSNICKETY ACADEMICS AND ANTI TESTING ADVOCATES RETURN N. A. E. P. TO ITS DIM NONJUDGMENTAL BACKWATER THERE TO BE RUN BY TIME SERVERS AND STATISTICIANS JERKED AROUND BY CONGRESS VULNERABLE TO INTEREST GROUP PRESSURES AND SUSCEPTIBLE TO POLICY DIRECTION BY WHOEVER HAPPENS TO BE EDUCATION SECRETARY INCUMBENT DICK RILEY HIMSELF A FORMER BOARD MEMBER VALUES TODAY'S N. A. E. P. AND ITS STANDARDS BUT POLITICS WILL INEVITABLY TEMPT OTHERS TO SHADE THE CONTENT TIMING OR EMPHASIS OF TEST RESULTS TRYING TO FORESTALL THAT FATE THE NATIONAL GOVERNORS ASSOCIATION ADOPTED A UNANIMOUS RESOLUTION LAST WEEK CALLING FOR RETENTION OF THE BOARD AND ITS STANDARDS REPRESENTATIVE MIKE CASTLE R. DELAWARE ANOTHER FORMER BOARD MEMBER HAS MOUNTED A SPIRITED DEFENSE THE CLINTON ADMINISTRATION'S OWN N. A. E. P. BILL IS SOLID AND THE SENATE MAY PAY IT GREATER HEED THIS SPRING HENCE THE FINAL OUTCOME WON'T BE CLEAR FOR A WHILE BUT IF THOSE WHO DISLIKE N. A. E. P.'S MESSAGE AND THE MESSENGER'S AUTONOMY PREVAIL A SENSITIVE NATIONAL TESTING VENTURE WILL BECOME JUST ANOTHER FEDERAL PROGRAM AND WE'LL KNOW LESS ABOUT THE PERFORMANCE OF OUR CHILDREN AND OUR SCHOOLS TOMORROW THAN WE DO TODAY MR. FINN A VANDERBILT PROFESSOR AND FORMER ASSISTANT SECRETARY OF EDUCATION CHAIRED THE NATIONAL ASSESSMENT GOVERNING BOARD FROM NINETEEN EIGHTY EIGHT TO NINETEEN NINETY QUEBECOR PRINTING INCORPORATED SAID IT SIGNED A LETTER OF INTENT TO BUY A FORTY NINE PERCENT STAKE IN GROUPE JEAN DIDIER OF FRANCE FOR ONE HUNDRED SIXTY FIVE MILLION FRENCH FRANCS TWENTY SEVEN POINT SIX MILLION DOLLARS QUEBECOR PRINTING WOULD INJECT CAPITAL IN THE FRENCH PRINTING COMPANY AND BUY SHARES FROM ITS FOUNDER AND CHAIRMAN JEAN DIDIER THE MONTREAL COMMERCIAL PRINTING COMPANY WOULD ALSO HAVE THE OPTION OF RAISING ITS STAKE EVENTUALLY IN GROUPE JEAN DIDIER TO EIGHTY PERCENT TERMS OF THE OPTION WEREN'T DISCLOSED THE TRANSACTION IS SCHEDULED FOR COMPLETION BY JUNE THIRTIETH SUBJECT TO DUE DILIGENCE AND APPROVAL BY QUEBECOR PRINTING'S BOARD GROUPE JEAN DIDIER HAS MORE THAN TWO BILLION FRANCS IN ANNUAL REVENUE AND MORE THAN ONE THOUSAND SEVEN HUNDRED EMPLOYEES THE INVESTMENT WOULD BE THE SECOND IN EUROPE FOR QUEBECOR PRINTING WHICH LAST YEAR ACQUIRED A MAJORITY STAKE IN ANOTHER FRENCH PRINTER ALLEGHENY POWER SYSTEM INCORPORATED NEW YORK SAID COMPLIANCE WITH THE CLEAN AIR ACT OF NINETEEN NINETY WILL COST IT SIX HUNDRED SIXTY NINE MILLION DOLLARS DOWN FROM A NINETEEN NINETY ONE ESTIMATE OF EIGHT HUNDRED SIX MILLION DOLLARS THE UTILITY HOLDING COMPANY SAID ESTIMATED COST FOR SCRUBBERS ON THREE OF ITS POWER PLANT UNITS HAS FALLEN TO FIVE HUNDRED FIFTY FIVE MILLION DOLLARS FROM SEVEN HUNDRED TWENTY SIX MILLION DOLLARS IN NINETEEN NINETY ONE ALLEGHENY SAID REGULATORS IN MARYLAND PENNSYLVANIA VIRGINIA AND WEST VIRGINIA ALLOWED THE COMPANY TO INCLUDE CERTAIN CONSTRUCTION COSTS IN ITS RATES DURING CONSTRUCTION OTHER SAVINGS CAME FROM FAVORABLE CONSTRUCTION CONTRACTS AND PLANNING THE COMPANY SAID ALLEGHENY'S PRINCIPAL OPERATING UNITS ARE MONONGAHELA POWER COMPANY POTOMAC EDISON COMPANY AND WEST PENN POWER COMPANY THIS BEING THE AGE OF THE INFORMATION SUPERHIGHWAY THE CLINTON ADMINISTRATION SAID IT IS MAKING COPIES OF THE NEW BUDGET AVAILABLE BY COMPUTER MODEM AND ON C. D. ROM FOR THE FIRST TIME THE C. D. ROM VERSION WITH ACCOMPANYING COMPUTER SOFTWARE INCLUDES EXACT REPLICAS OF THE DOCUMENTS TRANSMITTED TO CONGRESS IT IS AVAILABLE FOR THIRTY DOLLARS FROM THE COMMERCE DEPARTMENT THE LINE BY LINE APPENDIX WON'T BE AVAILABLE ON C. D. ROM UNTIL LATER THIS MONTH COPIES OF THE CLINTON BUDGET ARE ALSO AVAILABLE FREE FROM THE COMMERCE DEPARTMENT'S ELECTRONIC BULLETIN BOARD AND ON THE INTERNET OLD FASHIONED PAPER COPIES ARE AVAILABLE FROM GOVERNMENT PRINTING OFFICE IN WASHINGTON OR ITS BOOKSTORES AROUND THE COUNTRY THE BASIC BUDGET IS NINETEEN DOLLARS THE APPENDIX FORTY FOUR DOLLARS A SEPARATE VOLUME OF ANALYSES TWENTY ONE DOLLARS AND A BOOK OF HISTORICAL TABLES FIFTEEN DOLLARS THE CURTAIN RISES THE PORTLY FIGURE OF ROBERT MAXWELL EMERGES FROM A DIM LIT NETHERWORLD EYEBROWS ARCHED EYES GLEAMING THE MUSIC BUILDS QUOTE I AM THE PIRATE KING TA DA TA DA QUOTE THUNDERS QUOTE CAPTAIN BOB QUOTE TO A TUNE FROM QUOTE THE PIRATES OF PENZANCE QUOTE BUT WAIT THE SHOW MUST NOT GO ON SO RULED A HIGH COURT JUDGE HERE WHO BANNED MAXWELL THE MUSICAL FOUR DAYS BEFORE THE PLAY WAS SET TO OPEN FOR PREVIEWS THE SHOW ABOUT THE LATE PUBLISHING TYCOON WAS CREATED BY FORMER MAXWELL AIDE EVAN STEADMAN AND ADVANCE PUBLICITY PROMISED THAT MAXWELL THE MUSICAL WOULD MAKE YOU LAUGH SING AND BE ANGRY BUT AFTER READING AN ADVANCE COPY MR. MAXWELL'S SONS KEVIN AND IAN DIDN'T LAUGH AND THEY CERTAINLY DIDN'T SING THEY GOT ANGRY A PLAY ABOUT THEIR FATHER'S ESCAPADES WASN'T THE THING THEY WANTED BEFORE THEY GO ON TRIAL FOR THEIR ALLEGED ROLE IN CONCEALING THEIR FATHER'S SEAMIER BUSINESS SCHEMES A JUDGE AGREEING THAT THE PLAY MIGHT CREATE A SUBSTANTIAL RISK OF SERIOUS PREJUDICE ISSUED A TEMPORARY INJUNCTION I SHAN'T APPEAL SAYS MR. STEADMAN KEEPING A STIFF UPPER LIP DESPITE THE FACT THAT HE SPENT SEVERAL HUNDRED THOUSAND POUNDS ON THE PRODUCTION THE BAN LASTS ONLY UNTIL THE TRIAL ENDS BUT SINCE THE COURT HASN'T SET A DATE YET FOR THE TRIAL IT IS HARD TO SAY WHEN THE PLAY WILL GO ON MR. STEADMAN SAYS THAT MEANS LONDON AUDIENCES MIGHT HAVE TO WAIT A LONG TIME TO SEE ACTOR JOHN SAVIDENT CAVORTING ON STAGE IN A PADDED BAGGY SUIT AS HIS CHARACTER BUYS STAKES IN VARIOUS ENGLISH FOOTBALL CLUBS AND A CHORUS SINGS HE'S THE VERY MODEL OF A MODERN FOOTBALL MILLIONAIRE THE SHOW WOULD HAVE OPENED WITH MR. MAXWELL EMERGING FROM THE NEXT WORLD TO RECOUNT HIS LIFE STORY FOR A GATHERING OF BUSINESS ASSOCIATES LAWYERS POLITICIANS ENEMIES AND FRIENDS BUT NOT HIS SONS MR. STEADMAN SAYS THE PLAY DOESN'T EVEN MENTION THEM SOME FOURTEEN SONGS LATER IT ENDS WITH MR. MAXWELL'S NINETEEN NINETY ONE DEATH SOMETHING THAT HAS REMAINED A MYSTERY SINCE HIS NUDE BODY WAS FOUND FLOATING IN THE SEA OFF THE CANARY ISLANDS LAST NIGHT WORKERS TORE DOWN ADS FOR THE PLAY OUTSIDE A THEATER NEAR PICCADILLY CIRCUS AT THE BOX OFFICE PHONES RANG CONSTANTLY AS A CLERK INFORMED CALLERS SALES FOR THE ELEVEN WEEK RUN HAD BEEN QUOTE WITHDRAWN QUOTE TICKET HOLDERS WILL GET REFUNDS UNITED AIRLINES A UNIT OF U. A. L. CORPORATION SAID JANUARY TRAFFIC ROSE ONE POINT SIX PERCENT TO SEVEN POINT FIVE EIGHT BILLION REVENUE PASSENGER MILES FROM SEVEN POINT FOUR SIX BILLION A YEAR EARLIER A REVENUE PASSENGER MILE REPRESENTS ONE PAYING PASSENGER FLOWN ONE MILE THE CARRIER'S AVAILABLE SEAT MILES ROSE ONE POINT ONE PERCENT TO TWELVE POINT OH ONE BILLION FROM ELEVEN POINT EIGHT NINE BILLION THE NEW CLINTON BUDGET LOOKS FOR THE ECONOMY TO GROW THREE PERCENT BETWEEN THE FOURTH QUARTER OF NINETEEN NINETY THREE AND THE FINAL PERIOD OF THIS YEAR AND FOR SHORT TERM INTEREST RATES TO REMAIN BELOW FOUR POINT FIVE PERCENT FOR THE REST OF THE DECADE THE FORECAST FOR ECONOMIC GROWTH IS ABOUT IN LINE WITH THE CONSENSUS AMONG TOP ECONOMISTS IN THE BLUE CHIP ECONOMIC INDICATORS NEWSLETTER HOWEVER IT IS A BIT ROSIER THAN OTHER FORECASTS ON INTEREST RATES THE ADMINISTRATION FOR INSTANCE SEES THE RATE ON TEN YEAR TREASURY SECURITIES REMAINING BELOW SIX PERCENT THROUGH NINETEEN NINETY NINE THE CONGRESSIONAL BUDGET OFFICE AND MANY PRIVATE FORECASTERS EXPECT IT TO RISE ABOVE THAT POINT BY NEXT YEAR THE NEW BUDGET ESTIMATES THAT THE GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE U. S. WILL GROW TWO POINT SEVEN PERCENT IN NINETEEN NINETY FIVE AND NINETEEN NINETY SIX FOURTH QUARTER OVER FOURTH QUARTER GROWTH FOR THE CALENDAR YEAR WHICH MOST ANALYSTS USE IN THEIR FORECASTS THE CLINTON ADMINISTRATION EXPECTS GROWTH OF THREE POINT ONE PERCENT THIS YEAR TWO POINT EIGHT PERCENT IN NINETEEN NINETY FIVE AND TWO POINT SEVEN PERCENT IN NINETEEN NINETY SIX SOME ECONOMISTS THOUGH THINK THAT GROWTH IN THE COMING YEARS COULD BE A BIT BETTER THAN PROJECTED ESPECIALLY GIVEN THE ROBUST FIVE POINT NINE PERCENT GROWTH RATE IN THE LAST QUARTER OF NINETEEN NINETY THREE THE W. E. F. A. GROUP IN SUBURBAN PHILADELPHIA PUTS GROWTH AT ROUGHLY ZERO POINT TWO PERCENTAGE POINT HIGHER THAN THE WHITE HOUSE FOR EACH OF THOSE YEARS MICKEY LEVY CHIEF ECONOMIST OF NATIONSBANK ESTIMATES GROWTH MAY BE AS HIGH AS THREE POINT FIVE PERCENT THIS YEAR QUOTE WE'RE PROBABLY GOING TO SEE A LITTLE MORE GROWTH QUOTE THAN THE ADMINISTRATION'S FORECAST SAID JAMES GLASSMAN SENIOR ECONOMIST FOR CHEMICAL SECURITIES INCORPORATED IN NEW YORK IT'S HARD TO THINK WHAT COULD BE HOLDING US BACK IN RECENT MONTHS MANUFACTURING HAS SHOWN NEW SIGNS OF LIFE AND THE HOUSING SECTOR WHICH AT FIRST SEEMED IMMUNE TO LOW INTEREST RATES HAS KICKED IN AS WELL ANALYSTS SAY THE DEFENSE SECTOR AND TRADE WITH EUROPE AND JAPAN WILL PROBABLY NOT BE AS MUCH OF A DRAG ON THE ECONOMY AS THEY HAVE BEEN IN THE RECENT PAST THE WHITE HOUSE IS OPTIMISTIC THAT SHORT TERM RATES WILL REMAIN VERY LOW NOT EXCEEDING FOUR PERCENT OVER THE NEXT TWO YEARS THE BLUE CHIP FORECAST IS IN LINE WITH THAT VIEW AS WELL THE C. B. O. ON THE OTHER HAND FORECAST THE THREE MONTH TREASURY BILL RATE WILL MOVE TO FOUR POINT THREE PERCENT IN NINETEEN NINETY FIVE AND FOUR POINT SIX PERCENT IN NINETEEN NINETY SIX FROM ROUGHLY THREE PERCENT LAST YEAR THE WHITE HOUSE SEES HIGHER INFLATION DURING THIS PERIOD THAN DOES THE C. B. O. HIGHER INTEREST RATES ARE ASSOCIATED WITH HIGHER INFLATION IN PARTICULAR THE FEDERAL RESERVE'S TIGHTENING OF SHORT TERM RATES FRIDAY IT NUDGED THE FEDERAL FUNDS RATE TO THREE POINT TWO FIVE PERCENT LEADS MANY ECONOMISTS TO BELIEVE THAT INTEREST RATES ARE BOUND TO HEAD UP FURTHER THE FED WILL CONTINUE TO BE AGGRESSIVE IF THERE ARE ANY SIGNS OF INFLATION SAID KURT KARL HEAD OF MACROECONOMIC FORECASTING AT THE W. E. F. A. GROUP AFTER A WEEK LONG BATTLE THE PARTIES IN JAPAN'S RULING COALITION GOVERNMENT REACHED AGREEMENT ON HOW TO FINANCE A LONG AWAITED FIFTY SIX BILLION DOLLAR TAX CUT THE GOVERNMENT WILL REDUCE INCOME AND OTHER TAXES BY SIX TRILLION YEN FOR THE YEAR BEGINNING APRIL FIRST A GOVERNMENT SPOKESMAN SAID COALITION LEADERS PUT OFF A DECISION ON THORNY ISSUES SUCH AS WHETHER TO EXTEND THE TAX CUT AND HOW TO FINANCE IT IN ADDITION TO THE TAX REDUCTION THE SPOKESMAN SAID THE POLITICIANS WILL TRY TO PASS OTHER TAX BILLS THIS YEAR POSSIBLY INCLUDING A NEW TAX FISCAL CONSERVATIVES HAVE DEMANDED NEW TAXES IN ORDER TO PAY FOR ANY TAX DECREASE ECONOMISTS FRET THAT THE COMPROMISE DECISION TO OPT FOR A TEMPORARY TAX CUT RATHER THAN A PERMANENT ONE MAY ROB THE REDUCTION OF SOME OF ITS IMPACT BY DISCOURAGING CONSUMERS FROM SPENDING THE MONEY QUOTE IF THE CASH BACK IS JUST A WINDFALL FOR ONE YEAR IT'S HARD TO BELIEVE IT WILL INFLATE CONSUMPTION QUOTE SAID KOZO KOIDE ECONOMIST AT INDUSTRIAL BANK OF JAPAN LIMITED THE AGREEMENT COULD ALLOW JAPAN'S GOVERNMENT TO DELIVER THE REST OF ITS PLANNED ECONOMIC STIMULUS PACKAGE IN ADDITION TO AN INCOME TAX REDUCTION OF SIX TRILLION YEN THE PACKAGE IS EXPECTED TO CONTAIN ADDITIONAL SPENDING AND INVESTMENT VALUED AT NINE TRILLION YEN IT ALSO MAY INCLUDE MEASURES TO AID THE NATION'S TROUBLED BANKS DISAGREEMENT OVER HOW TO PAY FOR THE MEASURES HAS PARALYZED POLICYMAKERS FOR MONTHS THE COMPROMISE PLAN APPROVED BY THE COALITION BOILS DOWN TO AGREEING NOW TO LOWER THE TAX BURDEN AND PUTTING OFF UNTIL LATER THIS YEAR A DECISION ON HOW TO OFFSET THE REVENUE LOSS TOKYO STOCKS SOARED ON EARLY REPORTS OF THE COMPROMISE THE NIKKEI STOCK AVERAGE ENDED THE MORNING SESSION AT TWENTY THOUSAND FIVE HUNDRED SIXTEEN POINT THREE FIVE UP FIVE HUNDRED ONE POINT NINE FIVE POINTS OR TWO POINT FIVE PERCENT THE MARKET WAS ACTIVE FROM THE OPENING TRADERS SAID WITH FOREIGN INVESTORS DOMINATING THE BUYING THE TAX POLICY IMBROGLIO HAS BATTERED PRIME MINISTER HOSOKAWA'S POPULARITY POLITICIANS AND ANALYSTS CREDITED U. S. PRESSURE WITH BREAKING THE POLICY STALEMATE TOKYO IS DESPERATE TO DELIVER A STIMULATIVE ECONOMIC PLAN TO PRESIDENT CLINTON WHEN HE AND THE PRIME MINISTER MEET ON FRIDAY IN WASHINGTON THE U. S. HAS BEEN PRESSING JAPAN TO STIMULATE ITS ECONOMY AND THUS DEMAND FOR U. S. IMPORTS ECONOMISTS ESTIMATE THAT THE EXPECTED PACKAGE VALUED AT A TOTAL OF FIFTEEN TRILLION YEN COULD ADD AS MUCH AS TWO PERCENTAGE POINTS TO JAPAN'S GROSS DOMESTIC PRODUCT ONCE THE MONEY HITS THE PIPELINE THE JAPAN CENTER FOR ECONOMIC RESEARCH ESTIMATES THAT THE ECONOMY CONTRACTED AT A STUNNING ANNUAL RATE OF SIX POINT THREE PERCENT IN THE QUARTER ENDED DECEMBER THIRTY FIRST THE PACKAGE WOULD HELP BUT IT WOULDN'T CURE THE ECONOMY'S ILLS MOST ECONOMISTS AGREE MOST ANALYSTS EXPECT THE ECONOMY TO GROW BY LESS THAN ONE PERCENT IN NINETEEN NINETY FOUR EVEN IF THE GOVERNMENT CUTS TAXES AND INCREASES SPENDING JAPAN'S POWERFUL FINANCE MINISTRY WHICH STAUNCHLY OPPOSES DEFICIT SPENDING FOUGHT TENACIOUSLY FOR ASSURANCE THAT ANY TAX CUT LEGISLATION INCLUDE A GUARANTEE OF HIGHER CONSUMPTION TAXES LATER MEMBERS OF THE RULING COALITION ESPECIALLY THE SOCIALISTS RESISTED THE IDEA OF COMMITTING TO A TAX INCREASE WHILE THE NATION IS STILL IN RECESSION MR. HOSOKAWA CAME DOWN ON THE SIDE OF THE FINANCE MINISTRY HE PROPOSED LAST WEEK TO MORE THAN DOUBLE THE NATION'S SALES TAX IN NINETEEN NINETY SEVEN TO OFFSET THE INCOME TAX CUT PEOPLE ACCEPT THE NEED FOR HIGHER CONSUMPTION TAXES IN THE FUTURE BUT STRONGLY OPPOSE THE NOTION OF LEGISLATING AN INCREASE NOW WHILE JAPAN IS IN RECESSION MR. HOSOKAWA HAD TO WITHDRAW THE IDEA AFTER SOCIALIST MEMBERS OF HIS COALITION THREATENED TO LEAVE THE GOVERNMENT TUESDAY MORNING'S COMPROMISE SPLITS THE DIFFERENCE BETWEEN THE SOCIALIST AND FINANCE MINISTRY POSITIONS THE TAX BATTLE HAS BATTERED MR. HOSOKAWA'S ENORMOUS POPULARITY A POLL PUBLISHED TUESDAY MORNING BY THE NIHON KEIZAI SHIMBUN A BUSINESS DAILY SHOWED THE PRIME MINISTER'S PUBLIC SUPPORT RATE HAS PLUMMETED TO FIFTY THREE PERCENT FROM SEVENTY PERCENT IN DECEMBER THE POLLSTERS ATTRIBUTED THE PLUNGE TO THE TAX DEBATE H. J. HEINZ COMPANY CHAIRMAN TONY O'REILLY IS FACING A TOUGH OBSTACLE IN HIS BID TO EXTEND HIS EUROPEAN NEWSPAPER INTERESTS TO LONDON MR. O'REILLY'S INDEPENDENT NEWSPAPERS P. L. C. A DUBLIN PUBLISHING GROUP ON FRIDAY BOUGHT A TWENTY FOUR POINT NINE NINE PERCENT STAKE IN NEWSPAPER PUBLISHING OWNER OF THE LONDON PAPERS THE INDEPENDENT AND THE INDEPENDENT ON SUNDAY FOR P. EIGHTEEN FOUR MILLION TWENTY SEVEN POINT ONE MILLION DOLLARS OR THREE HUNDRED FIFTY PENCE A SHARE ANALYSTS SAW THE MOVE AS ONE THWARTING A RIVAL BID FROM A CONSORTIUM LED BY MIRROR GROUP NEWSPAPERS VALUED AT FIFTY FIVE POINT ONE MILLION POUNDS OR TWO HUNDRED SIXTY ONE POINT SIX PENCE A SHARE FOR THE FIFTY TWO POINT NINE PERCENT THAT IT DOESN'T ALREADY OWN HOWEVER A SPOKESMAN FOR MIRROR GROUP SAID THE NEWSPAPER CONCERN PLANS TO MAKE ITS OFFER DIRECTLY TO SHAREHOLDERS IN A MAILING OVER THE NEXT TWO WEEKS THE MIRROR GROUP CONSORTIUM ALREADY OWNS A FORTY SEVEN POINT ONE PERCENT STAKE IN NEWSPAPER PUBLISHING IF THE MIRROR GROUP OFFER SUCCEEDS IT COULD LEAVE MR. O'REILLY WITH AN EXPENSIVE STAKE IN A COMPANY THAT HE CANNOT CONTROL OR FORCE HIM TO MAKE A BID FOR THE WHOLE COMPANY MR. O'REILLY SEEMS TO HAVE THE UPPER HAND HOWEVER NEWSPAPER PUBLISHING'S BOARD ALREADY SIGNALED THAT IT'S WILLING TO WORK WITH HIM THE BOARD IS EXPECTED TO MEET WITH MR. O'REILLY THIS WEEK TO DISCUSS PLACING TWO OF HIS REPRESENTATIVES ON THE BOARD NEWSPAPER PUBLISHING REITERATED YESTERDAY THAT MIRROR GROUP'S OFFER OF TWO HUNDRED SIXTY ONE PENCE A SHARE IS QUOTE NOT SATISFACTORY QUOTE IN THE INDEPENDENT'S NEWSROOM MR. REILLY WAS HAILED AS A WHITE KNIGHT THE MIRROR CONSORTIUM WHOSE PARTNERS INCLUDE THE ITALIAN AND SPANISH NEWSPAPERS LA REPUBBLICA AND EL PAIS AS WELL AS THE INDEPENDENT'S EDITOR IN CHIEF HAD INDICATED IT WOULD CUT COSTS AND STAFF AS MANY AS TWO HUNDRED FIFTY INDEPENDENT JOBS WERE SAID TO BE ON THE LINE MR. O'REILLY WHO PURCHASED HIS STAKE FROM INSTITUTIONAL INVESTORS DECLINED TO COMMENT A MIRROR GROUP SPOKESMAN SAID THAT THE CONSORTIUM'S OFFER OF TWO HUNDRED SIXTY ONE POINT SIX PENCE A SHARE STILL STANDS WE BELIEVE THREE HUNDRED FIFTY A SHARE IS A PRETTY RIPE PRICE THE TWO HUNDRED SIXTY ONE A SHARE WE'VE VALUED IS REALISTIC THE MIRROR GROUP SPOKESMAN SAID CITIZENS BANKSHARES INCORPORATED SAID IT COMPLETED ITS ACQUISITION OF FIRESTONE BANK OF LISBON OHIO IN A STOCK SWAP VALUED AT ABOUT SEVEN POINT SIX MILLION DOLLARS CITIZENS SAID IT ISSUED ABOUT TWO HUNDRED THIRTY SEVEN THOUSAND SHARES TO ACQUIRE FIRESTONE CITIZENS CLOSED YESTERDAY AT THIRTY TWO DOLLARS UNCHANGED IN NASDAQ STOCK MARKET TRADING CITIZENS HAS ABOUT SIX HUNDRED FORTY FIVE MILLION DOLLARS IN ASSETS ROBERT BRANER FIFTY FIVE YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF LAMBORGHINI U. S. A. THE AUTO MAKER'S U. S. SALES AND MARKETING UNIT HE SUCCEEDS JOSEPH S. HANNAN JUNIOR WHO IS RESIGNING TO JOIN CHRYSLER CORPORATION TRADERS SENT PRICES OF MANY TREASURY NOTES AND BONDS LOWER YESTERDAY AS THEY CONTINUED TO WORRY ABOUT RISING SHORT TERM INTEREST RATES AND AN UPCOMING FLOOD OF NEW ISSUANCES THE LOSSES BUILT ON THOSE FROM LATE LAST WEEK WHEN THE FEDERAL RESERVE RAISED SHORT TERM INTEREST RATES SOONER THAN MANY HAD EXPECTED THE BENCHMARK THIRTY YEAR TREASURY BOND DROPPED MORE THAN THREE EIGHTHS POINT OR MORE THAN THREE DOLLARS AND SEVENTY FIVE CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY EIGHT AND THREE THIRTY SECONDS ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO SIX POINT THREE NINE PERCENT FROM SIX POINT THREE FIVE PERCENT ON FRIDAY THE YIELDS OF SHORT TERM SECURITIES ROSE SLIGHTLY THE BOND EQUIVALENT YIELD OF THE THREE MONTH BILL FOR EXAMPLE ROSE TO THREE POINT TWO THREE PERCENT FROM THREE POINT TWO TWO PERCENT ON FRIDAY MEANWHILE THE PRICES OF VENEZUELAN BONDS WHICH ARE POPULAR WITH AMERICAN INVESTORS INTERESTED IN DEVELOPING NATION MARKETS DROPPED SHARPLY IN REACTION TO NEWS THAT A MAJOR RATING AGENCY MIGHT SOON DOWNGRADE THE COUNTRY'S FOREIGN CURRENCY DEBT THE BOND MARKET BEGAN THE DAY ON A DECIDEDLY SOUR TONE REGISTERING SOLID LOSSES IN EARLY TRADING QUOTE THERE WAS SOME SERIOUS RETAIL SELLING RIGHT OUT OF THE CHUTE QUOTE SAID DANIEL CALLAHAN MANAGER OF GOVERNMENT SECURITIES TRADING AT PAINEWEBBER BEHIND THE BEARISH TILT TO THE MARKET WAS SPILLOVER FROM THE FED'S DECISION FRIDAY TO NUDGE SHORT TERM INTEREST RATES SLIGHTLY HIGHER MR. CALLAHAN SAID THE FED TIGHTENING HAS CAUSED SOME INVESTORS TO RECONSIDER THEIR ATTITUDE TOWARD THE BOND MARKET FOR THE LONGEST TIME THE MARKET WAS ABLE TO SHRUG OFF BAD NEWS ON THE FEELING THE FED WASN'T GOING TO RAISE RATES MR. CALLAHAN SAID NOW BAD NEWS COULD BRING A TIGHTENING IN ADDITION TO THE RIPPLES SPREADING FROM THE FED TIGHTENING TRADERS HAVE TO CONFRONT FRESH PROBLEMS IN PARTICULAR TRADERS ARE CONCERNED ABOUT THE RECEPTION THAT THIS WEEK'S FORTY BILLION DOLLARS QUARTERLY REFUNDING AUCTIONS WILL RECEIVE AT THE SAME TIME ECONOMISTS ARE PREDICTING THAT FRIDAY'S JANUARY PRODUCER PRICE INDEX REPORT COULD BE TROUBLE FOR THE MARKET THE PRICE INDEX IS A POPULAR MEASURE OF INFLATIONARY PRESSURES BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE TREASURY DEPARTMENT WILL BE SELLING SEVENTEEN BILLION DOLLARS OF THREE YEAR NOTES TODAY TWELVE BILLION DOLLARS OF TEN YEAR NOTES TOMORROW AND ELEVEN BILLION DOLLARS OF THIRTY YEAR BONDS THURSDAY THEN ON FRIDAY THE LABOR DEPARTMENT WILL RELEASE THE JANUARY PRODUCER PRICE INDEX FORECASTS CENTER ON AN INCREASE OF ABOUT ZERO POINT FOUR PERCENT FOR THE OVERALL P. P. I. AND A GAIN OF ABOUT ZERO POINT THREE PERCENT EXCLUDING FOOD AND ENERGY THE SUPPLY IS ON THE FOREFRONT FOR THE MARKET SAID MR. CALLAHAN OF PAINEWEBBER THE MARKET HAS ALSO GOT ON ITS MIND THE POSSIBILITY OF A DISAPPOINTING P. P. I. NUMBER HE SAID THE INFLATION NUMBERS ARE AN ESPECIALLY BIG PROBLEM FOR THOSE WHO HAVE TO BID ON THE THIRTY YEAR BOND AT THURSDAY'S AUCTION THE RISKS ARE FOR A HIGHER NUMBER AND WHO WANTS TO BUY A THIRTY YEAR BOND IN FRONT OF A POTENTIALLY SCARY P. P. I. NUMBER SAID STEVE WOOD DIRECTOR OF ECONOMIC RESEARCH AT B. A. SECURITIES SOME DEALERS SAID INVESTORS WERE VIEWING THE FED'S TIGHTENING LAST WEEK AS A POSITIVE FOR LONGER MATURITIES ARGUING THAT THE FED HAD ACTED PROMPTLY TO FIGHT A FLARE UP IN INFLATION EXPECTATIONS BEFORE IT BECAME A PROBLEM BOB MCCORKLE A SALESMAN AT SEATTLE NORTHWEST SECURITIES SAID THE MARKET IS ABLE TO WEATHER THE THREE PART REFUNDING AUCTIONS BUT WITH THE HELP OF SLIGHTLY LOWER PRICES QUOTE YOU'LL PROBABLY GO THROUGH THE REFUNDING WITH A LITTLE BIT OF A CONCESSION BUT THEN YOU'LL PROBABLY SEE A RALLY AS THE PAPER IS DISTRIBUTED QUOTE HE SAID BUT THE MARKET STILL MUST GET THROUGH TUESDAY'S THREE YEAR NOTE AUCTION TRADERS REMARKED BECAUSE A FED TIGHTENING HAS A GREATER IMPACT ON SHORT TERM SECURITIES THOSE ISSUES ARE SOMETIMES THE HARDEST TO AUCTION IN A PERIOD OF RISING INTEREST RATES IN WHEN ISSUED TRADING LATE YESTERDAY THE THREE YEAR NOTE YIELDED FOUR POINT EIGHT ONE PERCENT THE TEN YEAR NOTE TO BE AUCTIONED TOMORROW YIELDED FIVE POINT NINE PERCENT IN WHEN ISSUED TRADING WHILE THE THIRTY YEAR BOND TO BE SOLD THURSDAY YIELDED SIX POINT FOUR PERCENT 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 THREE HUNDRED SIXTY DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A THREE HUNDRED SIXTY FIVE DAY YEAR BOTH ISSUES ARE DATED FEBRUARY TENTH THE THIRTEEN WEEK BILLS MATURE MAY TWELFTH NINETEEN NINETY FOUR AND THE TWENTY SIX WEEK BILLS MATURE AUGUST ELEVENTH NINETEEN NINETY FOUR VENEZUELA'S BRADY BONDS REACHED THE MAT YESTERDAY AND WERE PINNED UNDER THE WEIGHT OF RISING INTEREST RATES AND NEWS THAT A MAJOR RATING AGENCY MAY SOON DOWNGRADE THE COUNTRY'S FOREIGN CURRENCY DEBT BRADY BONDS ARE ISSUED AS PART OF A DEBT RESTRUCTURING PROGRAM NAMED AFTER FORMER U. S. TREASURY SECRETARY NICHOLAS BRADY MOODY'S INVESTORS SERVICE SAID THAT IT HAD PUT VENEZUELA'S NINE POINT SIX BILLION DOLLARS OF PAR AND DISCOUNT BRADY BONDS AND A CLASS OF FLOATING RATE BRADY NOTES UNDER REVIEW FOR A POSSIBLE DOWNGRADE PAR BONDS ARE CONVERTED FROM RESTRUCTURED DEBT AT FACE VALUE WHILE DISCOUNTS ARE CONVERTED AT A DISCOUNT TO FACE VALUE MOODY'S CITED THE STEADY DETERIORATION OF VENEZUELA'S ECONOMIC FUNDAMENTALS A WORSENING OF ITS PUBLIC FINANCES THE CRISIS IN THE COUNTRY'S FINANCIAL SECTOR AND THE INCREASING POLITICAL INSTABILITY AND UNCERTAINTY THAT HELPED SEND VENEZUELA DEBT TUMBLING IN HEAVY VOLUME WITH THE PAR BRADY BONDS DROPPING TWO POINT FIVE POINTS TO SIXTY EIGHT POINT ONE TWO FIVE ANZELMO CHUECOS HEAD OF THE GOVERNMENT'S SUPERINTENDENCY OF FOREIGN INVESTMENT CALLED MOODY'S MOVE UNFAIR HE NOTED THAT THE COUNTRY'S ECONOMY HAS BEEN GREATLY TRANSFORMED RECENTLY AND THAT THE NEW GOVERNMENT OF PRESIDENT RAFAEL CALDERA WOULD CONTINUE THE MOVE TOWARD A COMPETITIVE ECONOMY TRADERS AT SEVERAL MAJOR DEALERS SHRUGGED OFF THE NEWS NOTING THAT VENEZUELAN DEBT HAS BEEN UNDER PRESSURE FOR A WHILE JOSEPH E. HYNES A PORTFOLIO MANAGER IN NEW YORK LIFE INSURANCE COMPANY'S EMERGING MARKETS GROUP SAID HE WAS NOT SURPRISED BY THE MOODY'S ANNOUNCEMENT THE MAJOR RATING AGENCIES HAVE ALREADY PUT SEVERAL INTERNATIONAL OIL COMPANIES ON REVIEW FOR POSSIBLE DOWNGRADE HE NOTED GIVEN THAT VENEZUELA GAINS AN OVERWHELMING PORTION OF GOVERNMENT REVENUE FROM NATIONAL OIL COMPANY PETROLEOS DE VENEZUELA IT SHOULDN'T STARTLE ANYONE HE SAID ACCORDING TO BANKERS TRUST ANALYST CARL W. ROSS FOR EVERY ONE DOLLAR DECLINE IN THE PRICE OF OIL VENEZUELA LOSES ABOUT SEVEN HUNDRED THIRTY MILLION DOLLARS ANNUALLY OR ABOUT ONE POINT TWO PERCENT OF GROSS DOMESTIC PRODUCT IN EXPORT REVENUE JUST TWO ISSUERS TAPPED THE CORPORATE DEBT MARKET YESTERDAY CINCINNATI GAS AND ELECTRIC COMPANY SOLD TWO HUNDRED TWENTY MILLION DOLLARS OF DEBT IN TWO PARTS AND THE FEDERAL HOME LOAN BANK SYSTEM SOLD ONE HUNDRED MILLION DOLLARS OF FLOATING RATE NOTES VOLUME OF ISSUANCE ISN'T EXPECTED TO PICK UP MUCH THIS WEEK BECAUSE OF VOLATILITY IN BONDS GENERALLY AND BECAUSE OF THIS WEEK'S SCHEDULED AUCTIONS OF TREASURY SECURITIES TRADING IN THE INVESTMENT GRADE MARKET WAS EXTREMELY QUIET AS PRICES FOLLOWED THOSE OF TREASURYS LOWER SPREADS OR THE MARGIN BETWEEN YIELDS IN THE TWO MARKETS NARROWED BY ZERO POINT ZERO ONE TO ZERO POINT ZERO TWO PERCENTAGE POINT ACROSS THE BOARD TRADING IN JUNK BONDS ALSO WAS LIGHT WITH PRICES ENDING DOWN ABOUT ONE QUARTER TO ONE HALF POINT THE CHANGE IN THE INTEREST RATE ENVIRONMENT HAS SOME GUESSING AT HOW COMPANIES WILL RESPOND MOST EXPECT SHORT TERM INTEREST RATES TO RISE FURTHER WHILE LONG TERM RATES MAY DROP SLIGHTLY PEOPLE ARE STILL THINKING THAT THIRTY YEAR TREASURYS ARE GOING TO RALLY AFTER THE TREASURY SUPPLY IS OUT OF THE WAY SAID BOB HUGIN HEAD OF TAXABLE FIXED INCOME AT J. P. MORGAN SECURITIES HOWEVER IF THIRTY YEAR TREASURYS CLIMB TO SIX POINT FIVE PERCENT ONE SYNDICATE OFFICIAL SAID ISSUERS WHO WERE WAITING FOR THE MARKET TO RALLY MIGHT JUMP INTO THE MARKET COMPANIES WHO HAVE TAKEN ADVANTAGE OF LOW SHORT TERM INTEREST RATES BY USING MORE THAN USUAL AMOUNT OF COMMERCIAL PAPER MAY DECIDE TO SELL THREE TO FIVE YEAR DEBT TO PAY DOWN THE COMMERCIAL PAPER ONE SYNDICATE OFFICIAL SAID BUT IN GENERAL SYNDICATE OFFICIALS SAY THAT THE LEVEL OF ISSUANCE IN THE INVESTMENT GRADE MARKET WILL DROP THIS YEAR THROUGH FEBRUARY FOURTH THERE WERE TWO HUNDRED TWELVE INVESTMENT GRADE DEBT OFFERINGS TOTALING THIRTY SIX POINT SEVEN NINE BILLION DOLLARS DOWN FROM TWO HUNDRED NINETY TWO TOTALING FORTY TWO POINT EIGHT FIVE BILLION DOLLARS IN THE COMPARABLE PERIOD OF LAST YEAR ACCORDING TO SECURITIES DATA HOWEVER THE NUMBER OF JUNK BOND DEALS HAS INCREASED SO FAR FORTY ONE DEALS TOTALLING EIGHT POINT EIGHT SEVEN BILLION DOLLARS IN PRINCIPAL AMOUNT HAVE BEEN PRICED UP FROM TWENTY NINE DEALS FOR SEVEN POINT FOUR EIGHT BILLION DOLLARS IN THE YEAR AGO PERIOD MUNICIPAL BONDS CONTINUE TO WEAKEN IN THE AFTERMATH OF THE FEDERAL RESERVE'S TIGHTENING AND THEY FINISHED YESTERDAY'S NERVOUS TRADING AS MUCH AS THREE QUARTERS POINT LOWER MUNI SPECIALISTS SAID THE MARKET IS JITTERY BECAUSE CONCERNS ABOUT THE FED'S TIGHTENING ARE COMPOUNDED BY UNCERTAINTIES ABOUT THE TREASURY'S DEBT AUCTIONS IN THE NEXT FEW DAYS AND THE JANUARY PRODUCER PRICE INDEX DATA THAT WILL BE RELEASED FRIDAY HARRIS COUNTY'S TEXAS FIVE POINT OH OH PERCENT BONDS DUE TWO THOUSAND SIXTEEN FINISHED THREE QUARTERS WEAKER AT NINETY FOUR AND THREE QUARTERS YIELDING FIVE POINT THREE SEVEN PERCENT LATE FRIDAY THOSE BONDS WERE PRICED TO YIELD FIVE POINT THREE ONE PERCENT IN FUTURES DEALINGS AT THE CHICAGO BOARD OF TRADE THIS SESSION MARCH MUNICIPAL BOND FUTURES SETTLED EIGHT THIRTY SECONDS LOWER AT ONE HUNDRED TWO TO NINETEEN WHILE MARCH TREASURY BOND FUTURES FINISHED TWO THIRTY SECONDS WEAKER AT ONE HUNDRED FOURTEEN TO TWENTY SIX ISSUES TOTALING MORE THAN NINE HUNDRED MILLION DOLLARS ARE SCHEDULED TO DEBUT TODAY NEGOTIATED OFFERINGS SCHEDULED FOR PRICING INCLUDE THE ORANGE COUNTY LOCAL TRANSPORTATION AUTHORITY CALIFORNIA TWO HUNDRED MILLION DOLLAR BONDS AND THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S ONE HUNDRED NINETY MILLION DOLLARS OF REVENUE BONDS LEHMAN BROTHERS IS THE MANAGING UNDERWRITER FOR THE ORANGE COUNTY ISSUE AND LAZARD FRERES IS THE LEAD UNDERWRITER FOR THE NEW YORK OFFERING BY THE END OF YESTERDAY'S SESSION MOST MORTGAGE SECURITIES WEREN'T ABLE TO ERASE MUCH OF THE NEARLY ONE HALF POINT LOSSES MADE IN THE MORNING BUT UNDERWRITERS WERE ABLE TO GET NEW BONDS OUT THE DOOR THEY TOOK ADVANTAGE OF A SLIGHT STEEPENING IN THE TREASURY YIELD CURVE GENERALLY AS THE CURVE STEEPENS THE ARBITRAGE INVOLVED IN CREATING REAL ESTATE INVESTMENT CONDUITS BECOMES MORE PROFITABLE ONE DEAL WAS OFFERED BY UTENDAHL CAPITAL PARTNERS MAKING IT THE FIRST FEDERAL NATIONAL MORTGAGE ASSOCIATION REMIC TO BE LEAD MANAGED BY A MINORITY SLASH WOMEN OWNED INVESTMENT BANK ACCORDING TO A RELEASE FROM FANNIE MAE THE TWO HUNDRED FIFTY MILLION DOLLAR OFFERING WAS BACKED BY FANNIE MAE'S SEVEN PERCENT MORTGAGE SECURITIES AND CONSISTED OF TWENTY FIVE CLASSES OR TRANCHES REMICS ARE CREATED BY CARVING UP EXISTING MORTGAGE SECURITIES INTO ANY NUMBER OF TRANCHES EACH WITH THEIR OWN INVESTMENT CHARACTERISTICS AND AIMED AT A VARIETY OF INVESTORS FROM THE RISK AVERSE TO THE MORE SPECULATIVE IN NATURE AMONG PRICES OF SIX POINT FIVE PERCENT SECURITIES FOR FEBRUARY DELIVERY GINNIE MAES WERE DOWN TEN THIRTY SECONDS NEAR THE CLOSE TO TRADE AT NINETY EIGHT AND TWENTY FIVE THIRTY SECONDS FREDDIE MAC GOLDS AND FANNIE MAES WERE OFF ELEVEN THIRTY SECONDS AT NINETY EIGHT AND THIRTY ONE THIRTY SECONDS AND NINETY EIGHT AND TWENTY FOUR THIRTY SECONDS RESPECTIVELY HUGOTON ENERGY CORPORATION SAID A NEW DISCOVERY WELL IN HASKELL COUNTY KANSAS FLOWED IN A TEST AT THE RATE OF THREE MILLION CUBIC FEET OF GAS AND AT LEAST TWO HUNDRED BARRELS OF OIL A DAY AT A DEPTH OF FIVE THOUSAND FIVE HUNDRED FEET HUGOTON THE OPERATOR OF THE WELL OWNS A SIXTY FIVE PERCENT INTEREST IN IT THE COMPANY SAID THE WELL IS EXPECTED TO BEGIN PRODUCTION BY MARCH FIRST PETSTUFF INCORPORATED SAID ITS BOARD APPROVED THE OPENING OF BETWEEN TWENTY FIVE AND THIRTY NEW PET FOOD AND SUPPLY SUPERSTORES IN THE CURRENT FISCAL YEAR WITH THE FIRST SCHEDULED TO OPEN IN APRIL THE COMPANY CURRENTLY OPERATES THIRTY FIVE STORES IN FOURTEEN METROPOLITAN AREAS UNITED PARCEL SERVICE OF AMERICA INCORPORATED AND THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS REACHED A SETTLEMENT TO END A SCATTERED WALKOUT THAT HOBBLED DELIVERIES THROUGHOUT THE NATION YESTERDAY ESPECIALLY IN THE NORTHEAST UNDER TERMS OF THE SETTLEMENT REACHED LAST NIGHT U. P. S. HAS AGREED NOT TO PENALIZE THE WORKERS WHO DEFIED A COURT ORDER TO STRIKE AND NOT TO SUE UNION LOCALS FOR DAMAGES U. P. S. SAID HOWEVER THAT IT WOULD STILL CONSIDER SEEKING DAMAGES FROM THE INTERNATIONAL LEADERSHIP BUT U. P. S. GRANTED NO REAL CONCESSIONS ON THE CORE ISSUE OF ITS NEW WEIGHT LIMIT FOR PACKAGES WHICH JUMPED TO ONE HUNDRED FIFTY POUNDS FROM SEVENTY POUNDS YESTERDAY THE COMPANY SAID IT DIDN'T CHANGE ANY OF ITS SAFETY PRECAUTIONS AND WOULD NOT IN THE FUTURE THE TEAMSTERS STILL CLAIMED VICTORY IN THE STRIKE WHICH SHUT DOWN U. P. S. OPERATIONS THROUGHOUT THE NORTHEAST AND OTHER PARTS OF THE COUNTRY MANY TEAMSTERS FEARING ARREST AND FINANCIAL LIABILITY IGNORED THE SUNDAY NIGHT STRIKE CALL BY THEIR PRESIDENT RON CAREY U. P. S. SAID ROUGHLY EIGHTY PERCENT OF THE ONE HUNDRED SIXTY FIVE THOUSAND TEAMSTERS WHO WORK FOR THE COMPANY REPORTED FOR WORK YESTERDAY THE UNION ESTIMATED THAT ABOUT HALF OF THE MEMBERS HONORED THE STRIKE THE FINANCIAL DAMAGE FROM THE STRIKE IS UNCERTAIN AND THE REAL FALLOUT HAS YET TO APPEAR ANALYSTS AND CONSULTANTS SAID THE APPEARANCE OF LABOR STRIFE COULD SPOOK THE LARGE SHIPPERS THAT U. P. S. IS BANKING ON FOR CONTRACTS QUOTE THIS SCARES US QUOTE SAID PHILIP SCHAECHER SENIOR VICE PRESIDENT OF OPERATIONS AT LANDS' END INCORPORATED A LARGE CUSTOMER EXECUTIVES AT FEDERAL EXPRESS CORPORATION AND AIRBORNE FREIGHT CORPORATION SAID THEY WON A SIZABLE NUMBER OF CUSTOMERS FROM U. P. S. YESTERDAY USING THE STRIKE AS A TOOL TO LURE AWAY BUSINESS I'M SURE THEY HAVE WON BUSINESS SAID A U. P. S. SPOKESMAN U. P. S. SAID THE STRIKE SHUT DOWN MOST OF ITS OPERATIONS IN THE NORTHEAST HALTING DELIVERIES OF PACKAGES AND EXPRESS LETTERS FROM BOSTON TO WASHINGTON D. C. OPERATIONS ALSO WERE JAMMED IN SEATTLE PITTSBURGH ATLANTA CHICAGO AND ORLANDO FLORIDA THE U. P. S. AIR OPERATION WAS LARGELY UNAFFECTED BUSINESSES THROUGHOUT THE COUNTRY WERE AFFECTED BY THE STRIKE AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S BASKING RIDGE N. J. OPERATIONS CENTER FOR INSTANCE DIDN'T RECEIVE ITS USUAL LOAD OF INTERNAL REPORTS AND COMPANY DELIVERIES LARGE USERS HAD TO REROUTE PACKAGES OR MAKE CONTINGENCY PLANS LANDS' END FOR INSTANCE WHICH SHIPS SEVENTY FIVE PERCENT OF ITS PACKAGES WITH U. P. S. SAID ITS DELIVERIES TO CHICAGO NEW YORK BOSTON AND PITTSBURGH WERE FROZEN THE COMPANY SAID IT MAY PULL SOME OF ITS BUSINESS FROM U. P. S. PERMANENTLY TO KEEP KEEP THE STREAM OF GOODS MOVING U. P. S. MANAGERS DROVE TRUCKS AND DELIVERED PACKAGES THROUGHOUT THE COUNTRY YESTERDAY PRIOR TO THE SETTLEMENT U. P. S. HAD CLAIMED THE WORKERS WERE BREAKING THE LAW AND THREATENED TO HOLD THE LOCAL UNIONS LIABLE FOR DAMAGES ON FRIDAY NIGHT FOLLOWING THREATS OF A STRIKE THE COMPANY WON A TEMPORARY RESTRAINING ORDER BARRING THE TEAMSTERS FROM A WALKOUT THE TEAMSTERS LEADERSHIP HAS TAKEN A HARD LINE ON THE NEW PACKAGE WEIGHT LIMIT THE ONE HUNDRED FIFTY POUND PACKAGES THEY SAY WILL POSE SERIOUS HEALTH RISKS TO WORKERS AND SHOULD HAVE BEEN NEGOTIATED DURING RECENT CONTRACT TALKS U. P. S. DISPUTED THE CLAIMS THE UNION SAID THAT AS PART OF THE SETTLEMENT U. P. S. WILL NEGOTIATE ITS SAFETY MEASURES U. P. S. SAID IT WILL ONLY CLARIFY ITS EXISTING MEASURES TO THE UNION THE TEAMSTERS ALSO SAID NO WORKER WILL BE FORCED TO CARRY A PACKAGE OF MORE THAN SEVENTY POUNDS ALONE ALTHOUGH THAT PROVISION WAS ALREADY IN THE U. P. S. MANUAL SEPARATELY A SENIOR LABOR DEPARTMENT OFFICIAL WHO DECLINED TO BE NAMED SAID THE AGENCY'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION PLANS TO TAKE A LOOK AT U. P. S.'S NEW RULE FORCING WORKERS TO CARRY ONE HUNDRED FIFTY POUND PACKAGES IT'S POTENTIALLY UNSAFE FOR WORKERS TO BE HAULING PACKAGES OF THAT WEIGHT WITHOUT DEVICES SIMILAR TO THOSE USED BY U. P. S. COMPETITORS INCLUDING FEDERAL EXPRESS THE OFFICIAL SAID U. P. S. SAYS ITS MEASURES ARE SAFER THAN THOSE USED BY COMPETITORS LABOR SECRETARY ROBERT REICH HELD PHONE CONVERSATIONS OVER THE WEEKEND AND YESTERDAY WITH MR. CAREY AND U. P. S. PRESIDENT KENT NELSON KEVIN G. SALWEN IN WASHINGTON CONTRIBUTED TO THIS ARTICLE U. K. INDUSTRIAL HOLDING COMPANY HANSON P. L. C. SAID MONDAY THAT ITS ONE HUNDRED PERCENT FLOTATION OF ITS BEAZER HOME BUILDING UNIT WILL OCCUR IN MARCH HANSON SAID VICTOR BENJAMIN DEPUTY CHAIRMAN OF U. K. GROUPS TESCO P. L. C. AND LEX SERVICE P. L. C. WILL BECOME BEAZER'S CHAIRMAN DENNIS WEBB NOW HEAD OF THE BEAZER UNIT WILL BE CHIEF EXECUTIVE IN DECEMBER HANSON ESTIMATED IT WOULD FLOAT BEAZER SOMETIME IN THE FIRST HALF OF NINETEEN NINETY FOUR THE MARKET EXPECTS HANSON TO RECEIVE IN THE NEIGHBORHOOD OF FOUR HUNDRED FIFTY MILLION POUNDS SIX HUNDRED SIXTY THREE MILLION DOLLARS FOR BEAZER THE HOME BUILDER HAD THIRTY SEVEN POINT FIVE MILLION POUNDS OF OPERATING PROFIT FOR THE YEAR ENDED SEPTEMBER THIRTIETH NINETEEN NINETY THREE THE EARNINGS ARE A SWING FROM A SIXTY ONE POINT SEVEN MILLION POUND LOSS IN THE YEAR ENDED JUNE THIRTIETH NINETEEN NINETY TWO THE COMPANY RECENTLY CHANGED ITS REPORTING YEAR TO END SEPTEMBER THIRTIETH IN THE JULY SEPTEMBER NINETEEN NINETY TWO QUARTER BEAZER EARNED SEVEN POINT FIVE MILLION CUBA'S CAUTIOUS FLIRTATION WITH ECONOMIC REFORM HAS COOLED DESPITE DIRE WARNINGS FROM INTERNATIONAL EXPERTS THAT THE ISLAND NEEDS FAST ACTION A RECENT REPORT BY INTERNATIONAL MONETARY FUND DIRECTOR JACQUES DE GROOTE SAYS THERE IS LITTLE TIME FOR THE COUNTRY TO MAKE QUOTE ORDERLY QUOTE REFORMS TO SPARK A TURNAROUND FOR ITS DEVASTATED ECONOMY THAT REPORT ECHOES A STUDY MADE BY FORMER SPANISH FINANCE MINISTER CARLOS SOLCHAGA WHO IS ADVISING CUBA ON ITS ECONOMIC TRANSITION MR. SOLCHAGA CALLS ON HAVANA TO FACE THE ISLAND'S ECONOMIC CHAOS WITH COURAGE AND BOLDNESS THE VIEW IS CONSISTENT FROM THE OUTSIDE THAT CUBA MUST MAKE CHANGES AND MUST MAKE THEM QUICKLY SAYS JORGE DOMINGUEZ A LEADING EXPERT ON CUBA AT THE INTER AMERICAN DIALOGUE A WASHINGTON THINK TANK BUT THE CUBAN GOVERNMENT IS PULLING BACK FROM ECONOMIC REFORMS REFORMS WHICH WERE TIMID TO BEGIN WITH HESITATION OVER PROPOSED REFORMS IS EVIDENCE THAT FIDEL CASTRO AND OTHERS IN THE COUNTRY'S HIERARCHY FEAR THAT CHANGES THEY HAVE BEEN PUSHED TO ADOPT WILL SOONER OR LATER CAUSE THEM TO LOSE CONTROL OVER CUBAN SOCIETY THE PEOPLE WHO ARE FIDEL'S TRUE BELIEVERS ARE THE ONES WHO HAVE THE MOST TO LOSE FROM THE REFORMS SAYS ENRIQUE BALOYRA A CUBA EXPERT AT THE UNIVERSITY OF MIAMI IF HE DOES WHAT THE PEOPLE WITH THE ECONOMIC SOLUTIONS WANT HIM TO DO HE HAS TO ACT AGAINST HIS MOST LOYAL FOLLOWERS MR. DE GROOTE AND HIS ASSISTANT FRANK MOSS MADE TWO PRIVATE WORKING VISITS TO HAVANA LAST YEAR AT THE INVITATION OF THE ISLAND'S CENTRAL BANK IN CUBA MR. DE GROOTE AN I. M. F. DIRECTOR WHO OVERSEES THE FUND'S MARKET TRANSITION PROGRAM FOR FIVE COUNTRIES INCLUDING HUNGARY AND THE CZECH REPUBLIC ORGANIZED A WEEK LONG SERIES OF SEMINARS ON THE TRANSITION FROM CENTRAL PLANNING TO A MARKET ECONOMY HIS REPORT SAYS CUBA HAS TURNED INTO QUOTE LARGELY A SUBSISTENCE ECONOMY QUOTE SINCE THE COLLAPSE OF THE SOVIET UNION TIME IS RUNNING OUT FOR THE ORDERLY INTRODUCTION OF A CRITICAL MASS OF MARKET ORIENTED REFORMS THE REPORT ISSUED IN NOVEMBER WARNS CUBAN AUTHORITIES FEEL THAT THE TIME FOR DECISIVE ACTION IS THE NEXT THREE TO SIX MONTHS THE REPORT GOES ON TO SAY TOP CUBAN OFFICIALS WHO MET WITH MR. DE GROOTE THE REPORT SAYS WERE VERY INTERESTED IN STRENGTHENING RELATIONS WITH THE I. M. F. CUBA HAS FREQUENTLY EXCORIATED THE INSTITUTION IT ISN'T AN I. M. F. MEMBER NOR HAS IT REQUESTED ADMISSION A REPORT SUBMITTED EARLIER LAST YEAR TO MR. CASTRO BY MR. SOLCHAGA WHO WAS ASKED BY SPANISH PRIME MINISTER FELIPE GONZALEZ TO ADVISE THE REGIME SAYS THERE IS NO INCENTIVE WHATSOEVER IN CUBA TO GENERATE PRODUCTION OR EFFICIENCY MR. SOLCHAGA ADVISES SHUTTING DOWN MONEY LOSING STATE ENTERPRISES CUTTING PERSONNEL AND SLASHING SUBSIDIES ON PRODUCTS SO AS TO MAKE THE REMAINING ENTERPRISES PROFITABLE MR. SOLCHAGA ALSO CALLS FOR THE CREATION OF A TAX SYSTEM WHICH CUBA CURRENTLY LACKS TOP MEMBERS OF THE CUBAN REGIME HAD SAID EARLIER THAT THEY EXPECTED A PACKAGE OF AUSTERITY MEASURES ALONG THOSE LINES TO BE APPROVED BY THE RUBBER STAMP NATIONAL ASSEMBLY AT ITS YEAR END MEETING BUT AT THE NATIONAL ASSEMBLY MEETING MR. CASTRO WHO DOMINATED THE PROCEEDINGS VEHEMENTLY ATTACKED CAPITALISM IN THE WAKE OF MR. CASTRO'S DISPLEASURE LEGISLATORS LEANED AWAY FROM REFORMS AND OPTED INSTEAD FOR OPENING A PERIOD OF NATIONAL DISCUSSION OF THE ISSUES A SECOND MEETING OF THE NATIONAL ASSEMBLY SCHEDULED FOR THE END OF JANUARY TO VOTE ON THE MEASURES NEVER TOOK PLACE EVEN BEFORE THE NATIONAL ASSEMBLY MEETING THE REGIME WAS SENDING SIGNALS THAT IT WAS PUTTING A BRAKE ON REFORMS THE MOST STRIKING IT BANNED CUBANS FROM CREATING PRIVATE RESTAURANTS AND OFFERING TAXI RIDES SERVICES THAT HAD BEEN INCLUDED AMONG A LIST OF MORE THAN ONE HUNDRED OCCUPATIONS THAT THE REGIME LAST SUMMER ALLOWED SOME CUBANS TO PRACTICE LEGALLY FOR THE FIRST TIME THE SIGNALS CONTINUE TO BE NEGATIVE IN LATE JANUARY CARLOS LAGE CUBA'S YOUTHFUL ECONOMIC CZAR RAILED AGAINST BLACK MARKETEERS AND SAID THAT NO MORE LICENSES SHOULD BE GIVEN TO PEOPLE SEEKING SELF EMPLOYMENT MEANWHILE THE PROPOSED REFORM MEASURES ARE BEING DISCUSSED IN WHAT SOME ANALYSTS SAY ARE THOUSANDS OF HIGHLY ORCHESTRATED TIGHTLY CONTROLLED DEBATES IN WORKPLACES ACROSS CUBA THE MEASURES HAVE ALSO BEEN ATTACKED IN THE CUBAN PRESS AS SMELLING OF THIRD WORLD CAPITALISM AND FOR BEING UN SOCIALIST SHOCK MEASURES SOME ANALYSTS WONDER WHETHER MR. CASTRO'S DEEP FEAR AND HATRED OF CAPITALISM WILL END UP STRANGLING THE REFORMS AS IT DID IN NINETEEN EIGHTY SIX WHEN HE CLOSED DOWN POPULAR PEASANT MARKETS BECAUSE PEASANTS WERE BECOMING RICH OTHERS FEEL THAT THE ECONOMIC SITUATION IS SO DIRE THAT MR. CASTRO HAS NO CHOICE BUT TO GO FORWARD HESITANTLY FORWARD BUT FORWARD THE I. M. F.'S MR. DE GROOTE FOR ONE PREDICTS THAT CUBA'S FEEBLE FIRST STEPS ON THE ROAD TO ECONOMIC TRANSITION WILL PICK UP MOMENTUM AS THE MARKET FORCES SET IN MOTION WILL PROVE IRREVERSIBLE AND MUCH STRONGER THAN THE CURRENT PERCEPTION OF THE CUBAN AUTHORITIES SEEMS TO INDICATE MR. DOMINGUEZ OF INTER AMERICAN DIALOGUE IS MORE PESSIMISTIC IT'S CLEARLY A PULLBACK HE SAYS QUOTE THE OPTIMISTIC READING IS THAT IT'S A PAUSE TO BUILD POLITICAL SUPPORT THE LESS OPTIMISTIC READING IS THAT THEY ARE STALEMATED MARIO J. GABELLI WAS NAMED A DIRECTOR OF THIS PRODUCT TRANSPORTATION CONCERN INCREASING THE SIZE OF THE BOARD TO SIX MEMBERS MR. GABELLI FIFTY ONE YEARS OLD IS CHAIRMAN OF LYNCH CORPORATION WHICH HOLDS A FORTY FOUR PERCENT STAKE IN MORGAN GROUP WESTERN EUROPEAN CAR SALES ROSE SIX POINT THREE PERCENT IN JANUARY BUT BECAUSE JANUARY NINETEEN NINETY THREE SALES WERE ABNORMALLY DEPRESSED NOBODY IS YET CELEBRATING A RECOVERY IN THE SAGGING EUROPEAN MARKET NEW CAR REGISTRATIONS IN SEVENTEEN WESTERN EUROPEAN COUNTRIES TOTALED ONE MILLION TWENTY EIGHT THOUSAND NINE HUNDRED TEN LAST MONTH COMPARED WITH NINE HUNDRED SIXTY SEVEN THOUSAND EIGHT HUNDRED A YEAR EARLIER IN JUST THE TWELVE COUNTRIES OF THE EUROPEAN UNION SALES ROSE SEVEN PERCENT TO NINE HUNDRED SIXTY ONE THOUSAND EIGHT HUNDRED FORTY UNITS FROM EIGHT HUNDRED NINETY EIGHT THOUSAND NINE HUNDRED FORTY A YEAR EARLIER ACCORDING TO PRELIMINARY FIGURES FROM THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION AN INDUSTRY GROUP IN BRUSSELS FOLLOWING ON THE HEELS OF A FIFTEEN PERCENT DECLINE IN THE WESTERN EUROPEAN MARKET IN NINETEEN NINETY THREE THE SHARPEST COLLAPSE IN THE MARKET SINCE WORLD WAR TWO THE IMPROVEMENT IN THE JANUARY NUMBERS IS QUOTE AN ENCOURAGING FIRST SIGN BUT IT'S CERTAINLY TOO EARLY TO SAY A STRONG RECOVERY IS UNDER WAY QUOTE SAID FRANCOIS COLLI EUROPEAN AUTO ANALYST AT PARIBAS CAPITAL MARKETS IN LONDON BECAUSE OF TAX INCENTIVES BY MANY EUROPEAN GOVERNMENTS FOR CARS WITH CATALYTIC CONVERTERS IN NINETEEN NINETY TWO MANY EUROPEANS HAD RUSHED THROUGH PURCHASES OF NEW CARS IN DECEMBER NINETEEN NINETY TWO SAPPING DEMAND IN JANUARY NINETEEN NINETY THREE THOSE RESULTING ARTIFICIALLY LOW LEVELS LAST JANUARY ENABLED MANY EUROPEAN MARKETS TO SHOW STUNNING PERCENTAGE INCREASES IN CAR SALES LAST MONTH WITHOUT ANY REAL IMPROVEMENT IN THE UNDERLYING MARKET ANALYSTS SAID IN THE NETHERLANDS CAR SALES JUMPED FORTY EIGHT PERCENT TO SIXTY SIX THOUSAND UNITS AND IN SPAIN SALES ROSE TWENTY EIGHT PERCENT TO ONE HUNDRED NINETY EIGHT THOUSAND FIVE HUNDRED THIRTY UNITS THE JANUARY FIGURES ARE VERY DISTORTED MR. COLLI SAID INDUSTRY ANALYSTS STILL ARE FORECASTING AN ESSENTIALLY STAGNANT MARKET IN NINETEEN NINETY FOUR WITH GROWTH OF ONLY BETWEEN ONE PERCENT AND THREE PERCENT FROM NINETEEN NINETY THREE'S DISMAL PERFORMANCE ONLY IN THE UNITED KINGDOM WHERE A REVIVING ECONOMY IS FUELING A SURGE IN AUTO PURCHASES DID THE CAR MARKET SHOW REAL VIBRANCY WITH SALES RISING TWENTY PERCENT TO ONE HUNDRED NINETY EIGHT THOUSAND FIVE HUNDRED THIRTY UNITS IN JANUARY IN NINETEEN NINETY THREE THE U. K. WENT AGAINST THE TREND WITH CAR SALES RISING ALMOST TWELVE PERCENT ANOTHER POTENTIAL BRIGHT SPOT IS FRANCE WHERE A SERIES OF GOVERNMENT ECONOMIC INITIATIVES COULD GIVE THE INDUSTRY A BOOST IN JANUARY THE FRENCH CAR MARKET GREW FIFTEEN PERCENT WITH SALES OF ONE HUNDRED TWENTY NINE THOUSAND FIVE HUNDRED SIXTY UNITS AND SOME ANALYSTS ARE PREDICTING SEVEN POINT FIVE PERCENT TO TEN PERCENT GROWTH FOR THE YEAR FUTURE COMMUNICATIONS INCORPORATED PROPOSED TO EMERGE FROM BANKRUPTCY COURT BY SELLING ITS MAIN ASSETS IN EXCHANGE FOR NOTES ISSUED BY TWO TINY COMPANIES OWNED IN PART BY FUTURE'S FORMER CHAIRMAN FUTURE'S CREDITORS WOULD GET AN UNSPECIFIED COMBINATION OF CASH AND STOCK IN THE TWO ACQUIRING COMPANIES THOUGH THE STATUS OF ONE OF THEM ACCORDING TO STATE REGULATORS IS MURKY FUTURE AND ITS FORMER CHAIRMAN SERGIO BOSCO WERE ACCUSED IN OCTOBER BY THE SECURITIES AND EXCHANGE COMMISSION OF FRAUDULENTLY INFLATING THE COMPANY'S STOCK PRICE WHICH QUADRUPLED DURING A TWO MONTH PERIOD LAST SUMMER BEFORE TRADING WAS HALTED THE COMPANY FILED FOR PROTECTION UNDER CHAPTER ELEVEN OF THE U. S. BANKRUPTCY CODE IN NOVEMBER FUTURE ALSO FACES A RAFT OF SHAREHOLDER LAWSUITS AND LITIGATION WITH CREDITORS AND FORMER EMPLOYEES UNDER THE REORGANIZATION PLAN FUTURE WOULD SELL THE FLEDGLING TELEVISION NETWORK OPERATED BY ITS MSTV INCORPORATED UNIT TO UPM INCORPORATED A UNIT OF STONE GRILL INTERNATIONAL INCORPORATED FOR A SEVENTY MILLION DOLLAR FIFTEEN YEAR SEVEN PERCENT NOTE CONVERTIBLE TO STONE GRILL STOCK STONE GRILL IS A FORMER FUTURE UNIT THAT SELLS STONES FOR TABLETOP COOKING FUTURE WOULD ALSO SELL ITS MULTIFAMILY CABLEVISION INCORPORATED UNIT WHICH OPERATES CABLE SYSTEMS TO TELEWORLD ENTERPRISES LIMITED IN A COMPLEX TRANSACTION TELEWORLD WOULD PAY TWELVE POINT FOUR MILLION DOLLARS IN NOTES TELEWORLD REPORTED A NET LOSS OF FOUR HUNDRED SIXTY NINE THOUSAND SIX HUNDRED FIFTEEN DOLLARS ON REVENUE OF ONE HUNDRED NINETY SEVEN THOUSAND FOUR HUNDRED SEVENTY DOLLARS FOR THE FISCAL SECOND QUARTER ENDED NOVEMBER THIRTIETH STONE GRILL POSTED A NET LOSS OF FIFTY SEVEN THOUSAND FIVE HUNDRED SEVENTY FIVE DOLLARS ON REVENUE OF TWENTY THREE THOUSAND NINE HUNDRED NINETY THREE DOLLARS FOR THE THIRD QUARTER ENDED SEPTEMBER THIRTIETH THE FAMILY OF MR. BOSCO WHO STEPPED ASIDE AS FUTURE'S CHAIRMAN AND CHIEF EXECUTIVE IN OCTOBER OWNS ABOUT TWENTY PERCENT OF TELEWORLD AND STONE GRILL ACCORDING TO FUTURE'S BANKRUPTCY ATTORNEY FUTURE'S SHAREHOLDERS WOULD RECEIVE WHAT IS LEFT OF THE COMPANY IF ANYTHING AFTER THE REORGANIZATION THE PLAN IS SUBJECT TO APPROVAL BY CREDITORS AND THE BANKRUPTCY COURT AN ATTORNEY FOR THE SHAREHOLDERS' COMMITTEE SAID HE COULDN'T COMMENT ON THE PLAN THE PROPOSAL MAY ENCOUNTER STUMBLING BLOCKS ACCORDING TO THE NEW YORK SECRETARY OF STATE'S OFFICE TELEWORLD WHICH IS INCORPORATED IN NEW YORK WAS DISSOLVED ON SEPTEMBER TWENTY NINTH BECAUSE IT DIDN'T PAY STATE TAXES FUTURE'S BANKRUPTCY ATTORNEY SAID TELEWORLD IS TRYING TO MAKE AMENDS WITH STATE REGULATORS ONE PERSON SHOWS WHERE A PERFORMER IMPERSONATES AN ARTISTIC CELEBRITY OF YESTERYEAR CAN BE LIKE WATCHING COURT T. V. A GUILTY PLEASURE TAKE IRENE WORTH'S QUOTE PORTRAIT OF EDITH WHARTON QUOTE NOW AT THE PUBLIC THEATER THE SMALL AREA IS GOTTEN UP AS AN OLD FASHIONED PRIVATE LIBRARY TWO TALL POTTED PALMS FLANK A LECTERN THERE IS A CARPET THERE ARE SEMIREAL BOOKSHELVES A HIGH TONED MIXTURE OF COMFORT AND CULTURE IS BEING EVOKED AFTER A PIPED IN PIANO INTERLUDE IRENE WORTH TAKES THE LECTERN HER REGAL WHITE HAIRED PRESENCE SWATHED IN THE YELLOWISH BILLOWS OF A FORTUNY GOWN A GIFT FROM LILLIAN GISH PURCHASED IN NINETEEN TWENTY FOUR I. N. FLORENCE ITALY ACCORDING TO THE PROGRAM MISS WORTH IS HERE TO TAKE US THROUGH THE LIFE AND WRITINGS OF THE NOVELIST ONE THOUSAND EIGHT HUNDRED SIXTY TWO TO NINETEEN THIRTY SEVEN AFTER A SHORT PROLOGUE IN WHICH SHE TELLS OF ASKING BERNARD BERENSON ABOUT THE FORMIDABLE BUT LOVABLE WHARTON THE ACTRESS SPEAKS AS WHARTON THE WORDS COME MAINLY FROM THE AUTOBIOGRAPHY THE BACKWARD YEARS OR AS WHARTON'S CHARACTERS THE FORMAT IS LOOSE AND FLOWING LIKE THAT FORTUNY IT TOO IS ATTRACTIVE AND PLEASANT WHARTON WAS A PRODUCT OF THE OLD HIGH NEW YORK SOCIETY OF THE MID NINETEENTH CENTURY THE FLOWER OF THE COLONIAL DUTCH AND ANGLO SAXON PLUTOCRACIES WHARTON'S WAS AN UPHOLSTERED CHILDHOOD ON FIFTH AVENUE MISS WORTH RECALLS THE SAVOR OF SOFT SHELLED CRABS WITH A MAYONNAISE OF CELERY AND PEACH FED VIRGINIA HAMS COOKED IN CHAMPAGNE EAT BEFORE YOU GO AND AT NEWPORT WHERE OMNIPRESENT VEILS PROTECTING FEMALE SKIN FROM THE DELETERIOUS SEA AIR BESPOKE AN ALMOST PAGAN WORSHIP OF PHYSICAL BEAUTY BUT FOR LITTLE EDITH THERE WAS ALWAYS A SERPENT OF DISCONTENT OF IRONIC AWARENESS IN THIS THING CHOKED PARADISE SHE HID IN THE LIBRARY AND WROTE STORIES HER MOTHER DISMISSIVELY REJECTED AN EARLY EFFORT BECAUSE IT CONTAINED A SOCIAL MISTAKE DRAWING ROOMS ARE ALWAYS TIDY THIS WAS PROPHETIC OF HER FAMILY'S LIFELONG ATTITUDE OF EMBARRASSMENT DISGRACE AND SILENCE AT HER LITERARY SUCCESSES FOR OPERA GOING CANVAS COLLECTING NEW YORK WAS AT BOTTOM PHILISTINE ART HATING EDITH TRIED TO BE A GOOD GILDED AGE GIRL SHE WED BUT HER HUSBAND AN ILLITERATE BECAME A VIOLENT MELANCHOLIC AND THE MARRIAGE WAS SEXUALLY UNFULFILLING NOT UNTIL A LATE AND AGONIZED AFFAIR WITH JOURNALIST MORTON FULLERTON DID WHARTON FIND THE SEXUAL RAPTURES DOCUMENTED IN AN UNPUBLISHED RACY STORY THAT WORTH READS WHARTON LIBERATED HERSELF FROM THE PRISONS OF NEW YORK AND MARRIAGE IN TWO STAGES FIRST SHE BUILT THE MOUNT IN MASSACHUSETTS AS A RETREAT AND SANCTUARY LATER THE MARRIAGE OVER SHE MOVED TO PARIS FOR GOOD IN NINETEEN THIRTEEN SHE HAD FOUND FRIENDS ABOVE ALL HENRY JAMES IN THIS READING PRESENTED TOO ONE SIDEDLY AS MERELY A COMIC FUDDY DUDDY TO ENCOURAGE HER IN HER GREAT TASK OF WRITING ABOUT THAT NEW YORK OF QUOTE IRRESPONSIBLE PLEASURE SEEKERS QUOTE AND THE FINER SPIRITS THEY DESTROY ON WHARTON'S ART AS OPPOSED TO HER LIFE IRENE WORTH IS SKIMPY CONFINING HERSELF TO SNIPPETS FROM THE HOUSE OF MIRTH AND ETHAN FROME WHARTON SPENT THE WORLD WAR ONE YEARS IN PARIS DOING PROPAGANDA AND GOOD WORKS MISS WORTH VIVIDLY EVOKES THE TIMES FROM AN ALMOST CLOUDLESS PICNIC BARELY RUFFLED BY THE NEWS FROM SARAJEVO TO THE DAY PARIS'S LONG STILLED CHURCH BELLS CALLED JOYOUSLY TO EACH OTHER TO MARK THE ARMISTICE AFTER THE WAR COME A FEW GENTLE GLIMPSES OF GILDED OLD AGE WORTH AND WHARTON MAKE A GOOD FIT WHARTON BOTH IN AND OUT OF HER SOCIETY BOTH MAJESTIC AND REBELLIOUS CAST A COLDLY APPRAISING EYE UPON THE SPLENDORS THAT SURROUNDED HER IRENE WORTH AN AMERICAN ARTIST WHO HAS ENJOYED HER GREATEST TRIUMPHS ABROAD HAS HAD AN INCOMPARABLY RICH CAREER CO FOUNDING THE CANADIAN SHAKESPEARE FESTIVAL CREATING ROLES IN T. S. ELIOT'S COCKTAIL PARTY EDWARD ALBEE'S TINY ALICE AND SAMUEL BECKETT'S HAPPY DAYS WHILE WINNING A TONY IN NEIL SIMON'S LOST IN YONKERS HERS IS A WHARTONESQUE BLEND OF NOBLE GRANDEUR AND TOUGH MINDED RISK TAKING FOR SEVENTY SEVEN MINUTES SHE STANDS AT THAT LECTERN LIKE WHARTON HERSELF WHO DID HER WRITING EITHER AT A LECTERN OR IN BED AND ENACTS A DISPLAY OF CHARACTER AND CHARM NOT OMITTING TO REVEAL THE STEEL UNDERGIRDING THE CHARM SO MUCH FOR THE PLEASURE TIME FOR A DEFLATING WORD ABOUT THIS WHOLE GENRE OF DRESSING UP AS FAMOUS AUTHORS IT ACHIEVED CRITICAL MASS SOME DECADES BACK WITH EMLYN WILLIAMS DOING DICKENS AND HAL HOLBROOK DOING TWAIN AND WAS REPRESENTED IN NEW YORK THREE SEASONS AGO BY EILEEN ATKINS AS VIRGINIA WOOLF AND BY JULIE HARRIS AS ISAK DINESEN THE GIMMICK IS GENERALLY TO SHOW THE AUTHOR SURROUNDED BY EVOCATIVE BRIC A BRAC AT SOME MOMENT OF LATE LIFE CRISIS REMINISCING UPON THE HIGHS AND LOWS OF A COLORFUL CAREER SOMETIMES THE LIFE PLAYS SECOND FIDDLE TO A TEXT AS WITH MS. ATKINS WHO SIMPLY READ FROM A ROOM OF HER OWN BUT WHETHER SAD OR COMIC WHETHER MISCAST THE SUPERB JULIE HARRIS DID NOT REALLY CONVINCE AS A DANISH ARISTOCRAT OR IDEALLY CAST AS HERE AT THE PUBLIC THE GENRE IS MERETRICIOUS IT REDUCES ACTING TO A STUNT AN IMPERSONATION IT REDUCES WRITERS TO CELEBRITIES IT REDUCES LITERATURE TO A GREATEST HITS COLLECTION LIKE THOSE NOSTALGIA COMPILATIONS NOT SOLD IN ANY STORE IT GIVES THE AUDIENCE A FALSE SENSE OF INTIMACY WITH GREAT WRITING WHILE IN REALITY IT IS NOT EVEN SO DEMANDING AS LISTENING TO RECORDED BEST SELLERS IN THE CAR AND THE GREATER THE WRITER THE MORE DISHONEST THE EXPERIENCE WHAT WOULD WHARTON HAVE MADE OF THIS ART LITE SO FOR ALL MY PLEASURE AT IRENE WORTH I'D HAVE BEEN BETTER OFF MORALLY READING THE HOUSE OF MIRTH AT HOME OR EVEN SEEING THE AGE OF INNOCENCE ON A SCREEN MR. LYONS IS THE THEATRE CRITIC OF THE NEW CRITERION KENNEDY WILSON INCORPORATED SANTA MONICA CALIFORNIA RANDALL G. DOTEMOTO THIRTY SEVEN YEAR OLD EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED CHIEF OPERATING OFFICER MR. DOTEMOTO WHO CONTINUES AS CHIEF FINANCIAL OFFICER OF THIS REAL ESTATE INVESTMENT BANKING AND AUCTION MARKETING COMPANY SUCCEEDS WILLIAM R. STEVENSON FIFTY THREE WHO WAS NAMED VICE CHAIRMAN LAST YEAR IF GAY RIGHTS ACTIVISTS THOUGHT THE ARRIVAL OF A SYMPATHETIC PRESIDENT WOULD SIGNIFICANTLY EASE THEIR POLITICAL BATTLES THEY NOW HAVE BEEN DISABUSED OF THAT NOTION AT THE OUTSET OF PRESIDENT CLINTON'S SECOND YEAR THE GAY AND LESBIAN RIGHTS MOVEMENT FINDS ITSELF FIGHTING A SIGNIFICANT BACKLASH IN EIGHT STATES STRETCHING FROM FLORIDA TO WASHINGTON OPPONENTS ARE PUSHING TO PUT INITIATIVES DESIGNED TO CURB GAY AND LESBIAN RIGHTS ON THE FALL BALLOT MORE SUCH STATE INITIATIVES STILL COULD POP UP IN THIS ELECTION YEAR AND SOME STATE LEGISLATURES AND CITIES ARE LIKELY TO TAKE UP LEGISLATION WITH SIMILAR GOALS AND IN RESPONSE THE GAY RIGHTS MOVEMENT HAS GEARED UP AN EXTENSIVE NATIONAL CAMPAIGN TO FIGHT BACK ALL TOLD NINETEEN NINETY FOUR IS SHAPING UP AS A MORE CRUCIAL YEAR IN DETERMINING THE STATUS OF THE GAY RIGHTS MOVEMENT THAN WAS NINETEEN NINETY TWO THE YEAR MR. CLINTON WAS ELECTED OR NINETEEN NINETY THREE THE YEAR OF THE MUCH CELEBRATED DEBATE OVER GAYS IN THE MILITARY AND THE IMPORTANT BATTLES WON'T BE FOUGHT INSIDE WASHINGTON BUT IN THE STATE SKIRMISHES THAT ARE PITTING GAY RIGHTS ACTIVISTS AGAINST RELIGIOUS CONSERVATIVES QUOTE THE REAL STRUGGLE FOR GAY AND LESBIAN RIGHTS ISN'T GOING TO HAPPEN INSIDE THE BELTWAY QUOTE SAYS SUE HYDE AN ORGANIZER FOR THE NATIONAL GAY AND LESBIAN TASK FORCE'S QUOTE FIGHT THE RIGHT QUOTE PROGRAM I THINK IT'LL BE A VERY IMPORTANT YEAR HER FORCES HAVE JUST WON THE YEAR'S FIRST BIG BATTLE IN MAINE WHERE A PETITION DRIVE TO PUT AN INITIATIVE LIMITING GAY RIGHTS ON THIS YEAR'S BALLOT FELL SHORT OF THE NUMBER OF SIGNATURES REQUIRED BY THE JANUARY THIRTY FIRST DEADLINE FOR THEIR PART OPPONENTS OF GAY RIGHTS AGREE THE STRUGGLE IS AT AN IMPORTANT JUNCTURE WE KNOW THAT OUR PEOPLE AND THE MAJORITY OF THE POPULACE IN AMERICA WILL NOT ENDORSE HOMOSEXUALITY AS A SPECIAL LIFESTYLE SAYS REVEREND LOU SHELDON HEAD OF THE CALIFORNIA BASED TRADITIONAL VALUES COALITION WHICH HAS BEEN ACTIVE IN PUSHING STATE BALLOT INITIATIVES THERE'S A CLEAR MESSAGE IN AMERICA THAT PEOPLE ARE SAYING NO IN NARROW TERMS THE MAIN FIGHT AT THE MOMENT IS OVER WHETHER GAYS AND LESBIANS WILL BE GRANTED SPECIFIC LEGAL PROTECTIONS AGAINST DISCRIMINATION THE SEMINAL BATTLE IN THIS WAR WAS FOUGHT IN COLORADO TWO YEARS AGO WHEN VOTERS APPROVED A CONSTITUTIONAL AMENDMENT PROHIBITING ANTI DISCRIMINATION LAWS FOR GAYS AND LESBIANS THAT AMENDMENT HAS BEEN KNOCKED DOWN IN THE COURTS THOUGH AND ITS FATE HANGS IN JUDICIAL LIMBO BUT IN THE MEANTIME SIMILAR STATE INITIATIVES ARE SPROUTING GROUPS IN WASHINGTON OREGON IDAHO ARIZONA MICHIGAN NEVADA AND MISSOURI ARE MOUNTING DRIVES TO PUT COLORADO STYLE INITIATIVES ON THEIR STATE BALLOTS A PROPOSED CONSTITUTIONAL AMENDMENT IN FLORIDA AND THE INITIATIVE THAT FELL SHORT IN MAINE WOULD TAKE A DIFFERENT TACK THEY WOULD STRICTLY LIMIT THE SCOPE OF ANTI DISCRIMINATION LAWS TO A SPECIFIC LIST OF GROUPS WHICH POINTEDLY EXCLUDES GAYS AND LESBIANS THE BACKERS OF THOSE INITIATIVES SAY THEY ARE SIMPLY TRYING TO STOP GAYS AND LESBIANS FROM GETTING SPECIAL LEGAL RIGHTS THAT WOULD REPRESENT A PUBLIC ENDORSEMENT OF THEIR LIFESTYLE HOMOSEXUALS ARE COVERED UNDER THE SAME RIGHTS AS EVERYBODY ELSE IS COVERED SAYS THE REVEREND DON WILDMON HEAD OF THE AMERICAN FAMILY ASSOCIATION WHICH HAS STATE AND LOCAL AFFILIATES ACTIVE ON BALLOT INITIATIVES SIMPLY BECAUSE THEY WANT TO GO TO BED WITH SOMEBODY FROM THE SAME SEX DOESN'T MEAN THEY ARE ENTITLED TO SPECIAL RIGHTS HOMOSEXUALS AS YOU WELL KNOW HAVE A HIGH PROFILE RIGHT NOW BUT IT'S BEGINNING TO BACKFIRE QUOTE GAY RIGHTS ADVOCATES THOUGH SEE THE LOCAL INITIATIVES AS PART OF A MUCH WIDER EFFORT BY THE RELIGIOUS RIGHT TO PUSH ITS BROADER SOCIAL AGENDA PEOPLE WHO LOOK FOR HOT BUTTON ISSUES AROUND WHICH THEY CAN ORGANIZE THEIR PEOPLE AND BUILD THEIR BASE LOOK FOR ISSUES WITH HIGH EMOTIONAL CONTENT SAYS ANN LEWIS A LONG TIME DEMOCRATIC PARTY ACTIVIST AND A GAY RIGHTS SUPPORTER THEY HAVE TRIED AND FAILED ON OTHER ISSUES THEY'VE NOW MOVED ON TO GAY RIGHTS BUT THE NATION'S MOST POWERFUL CONSERVATIVE CHRISTIAN POLITICAL ORGANIZATION PAT ROBERTSON'S CHRISTIAN COALITION SAYS THAT WHILE IT SUPPORTED THE COLORADO INITIATIVE IN NINETEEN NINETY TWO IT ISN'T DRIVING THE CURRENT CROP OF INITIATIVES WE'RE NOT REALLY PUSHING THEM SAYS RALPH REED THE COALITION'S EXECUTIVE DIRECTOR THEY'RE JUST OUT THERE HAPPENING WHATEVER THE FORCES DRIVING THE STATE AND LOCAL INITIATIVES THE GAY AND LESBIAN COMMUNITY IS MOUNTING AN INCREASINGLY SOPHISTICATED COUNTER ATTACK THE NATIONAL GAY AND LESBIAN TASK FORCE HAS LAUNCHED ITS FIGHT THE RIGHT PROJECT TO TRAIN LOCAL ACTIVISTS AND DO GRASS ROOTS CAMPAIGNING PROJECT LEADERS CONDUCTED A SIX MONTH TOUR AT THE END OF LAST YEAR IN WHICH THEY COVERED ONE HUNDRED THOUSAND MILES AND FIFTEEN STATES TRAINING SOME THREE THOUSAND COMMUNITY ACTIVISTS AT THE SAME TIME A NEW NATIONAL ORGANIZATION THE GAY AND LESBIAN AMERICANS IS JUST FORMING HERE TO LINK GRASS ROOTS ACTIVISTS AROUND THE NATION AND PUSH A FEDERAL GAY AND LESBIAN RIGHTS BILL THAT WOULD HEAD OFF SOME OF THE STATE LEVEL EFFORTS IN THE MEANTIME THE MOST IMPORTANT OF THE NINETEEN NINETY FOUR STATE FIGHTS IS LIKELY TO OCCUR IN FLORIDA THERE LEADERS OF THE STATE'S AMERICAN FAMILY VALUES ORGANIZATION ARE STRUGGLING TO GATHER FOUR HUNDRED TWENTY NINE THOUSAND SIGNATURES BY THE END OF JULY TO PUT ON THE STATE'S NOVEMBER BALLOT THE INITIATIVE EXCLUDING GAY AND LESBIAN RIGHTS FROM THE STATE'S ANTI DISCRIMINATION STATUTES QUOTE IT'S NOT AN IMPOSSIBLE TASK BUT IT'S AN EXTREME UPHILL BATTLE QUOTE SAYS DAVID CATON CHAIRMAN OF THE AMERICAN FAMILY POLITICAL COMMITTEE OF FLORIDA MR. CATON SAYS THE INITIATIVE IS DESIGNED TO HEAD OFF NEW ATTEMPTS TO EXPAND THE STATE'S CIVIL RIGHTS LAW TO INCLUDE LANGUAGE ON SEXUAL ORIENTATION WE THINK THERE'S A NEW STYLE OF BEHAVIOR ORIENTED GROUPS THAT ARE TRYING TO EMPOWER THEMSELVES BY INCLUSION IN DISCRIMINATION LAWS HE SAYS MS. HYDE OF THE NATIONAL GAY AND LESBIAN TASK FORCE TERMS FLORIDA AN EXTREMELY IMPORTANT PIVOTAL STATE AS IT PLAYS A BIG AND IMPORTANT ROLE IN NATIONAL AND PRESIDENTIAL POLITICS SO IT WILL PLAY A BELLWETHER ROLE IN ASSESSING THE STATE OF GAY AND LESBIAN RIGHTS IN THE COUNTRY AS TOYOTA MOTOR CORPORATION GOES SO GOES JAPAN THESE DAYS IT'S GOING BADLY BUT NOT AS BADLY AS IT COULD WHEN JAPAN'S MIGHTIEST MANUFACTURER REPORTS EARNINGS TODAY FOR ITS FIRST HALF ENDED DECEMBER THIRTY FIRST ANALYSTS EXPECT TOYOTA TO TURN AN OPERATING PROFIT OF TEN BILLION YEN NINETY ONE POINT FIVE MILLION DOLLARS OR MORE THAT FIGURE WOULD REPRESENT A PLUNGE OF EIGHTY THREE PERCENT FROM A YEAR EARLIER BUT LAST SUMMER WHEN THE YEN WAS SOARING SOME ANALYSTS SAID JAPAN'S PREMIER CAR MAKER MIGHT POST ITS FIRST LOSS SINCE NINETEEN FORTY NINE AS THE RECESSION DEEPENED IN THE AUTUMN PUNDITS CHIDED TOYOTA FOR FAILING TO CUT COSTS FAST ENOUGH NONSENSE REPLIED TOYOTA PRESIDENT TATSURO TOYODA QUOTE WE'RE DOING PRETTY MUCH EVERYTHING WE OUGHT TO BE DOING QUOTE THE SOFT SPOKEN MR. TOYODA SAID IN A RECENT INTERVIEW THERE ARE ALSO SOME PEOPLE WHO SAY WE'RE GOING TOO FAST SUCH IS THE STRENGTH OF JAPAN'S BEST MANUFACTURERS WHILE THE NATION'S WORST POSTWAR RECESSION HAS FORCED PLENTY OF COMPANIES INTO THE RED INCLUDING AUTO MAKERS NISSAN MOTOR COMPANY AND MAZDA MOTOR CORPORATION OTHER BUSINESSES SUCH AS TOYOTA ARE STILL TURNING A PROFIT THAT'S TRUE IN SPITE OF THEIR GO SLOW APPROACH TO RESTRUCTURING SO FAR SOME OF JAPAN'S STRONGEST COMPANIES HAVE BEEN ABLE TO SWEAT OUT THE SLUMP WITHOUT THE LAYOFFS AND PLANT CLOSINGS THAT MANY HAD FEARED I WOULD THINK THAT THE HALF JUST ENDED IS THE BOTTOM FOR TOYOTA SAID PETER BOARDMAN AUTO ANALYST AT U. B. S. SECURITIES LIMITED TOYOTA'S ABILITY TO REMAIN IN THE BLACK HE ADDED SHOWS THAT IT'S A VERY STRONG COMPANY VERY WELL MANAGED TOYOTA ISN'T OUT OF THE WOODS YET THE YEN COULD SOAR AGAINST THE DOLLAR HURTING TOYOTA'S OVERSEAS SALES JAPAN'S RECESSION COULD LINGER FURTHER CRIMPING DOMESTIC DEMAND SOME ANALYSTS SAY TOYOTA IS IN FOR ANOTHER STEEP DROP IN EARNINGS IN THE JANUARY TO JUNE HALF AND EARNINGS WON'T START REBOUNDING UNTIL JULY OR LATER WHAT'S MORE TOYOTA'S VERY ABILITY TO AVOID MAKING PAINFUL CUTS COULD COME BACK TO HAUNT IT BECAUSE OF TOYOTA'S STRENGTH THEY HAVE LESS DEMAND ON THEM TO MAKE THOSE CUTS THAN OTHER MAKERS SAID MR. BOARDMAN THAT MEANS WHEN RECOVERY DOES COME THEY MAY NEVER RETURN TO PEAK PROFITS INDEED DESPITE MR. TOYODA'S PROFESSED NONCHALANCE THIS DOWNTURN HAS ROCKED TOYOTA TO THE CORE COMPANY DIRECTOR RYUJI ARAKI SAID TOYOTA QUOTE IS STUDYING THE POSSIBILITY QUOTE OF CLOSING A FACTORY IN JAPAN BUT HE QUICKLY ADDED AS LONG AS WE DON'T GO INTO THE RED WE'LL NEVER DO IT FOR NOW AT LEAST IT LOOKS AS IF TOYOTA MAY DODGE THE BULLET TOYOTA FORECASTS A PARENT BASIS OPERATING PROFIT OF TEN BILLION YEN FOR THE LATEST HALF DOWN FROM FIFTY EIGHT POINT TWO TWO BILLION YEN A YEAR EARLIER IT EXPECTS NET INCOME OF FORTY BILLION YEN DOWN FORTY FIVE PERCENT ON SALES OF FOUR TRILLION YEN DOWN TWELVE PERCENT ANALYSTS SAY EARNINGS COULD COME IN HIGHER THAN THOSE ESTIMATES HOWEVER LUCK IS PLAYING ITS PART LAST AUGUST THE YEN ROCKETED TO NEAR ONE HUNDRED YEN TO THE DOLLAR BUT RETREATED TO ABOUT ONE HUNDRED TWELVE YEN BY YEAR END HAD THE CURRENCY STAYED AT ITS PEAK LEVELS FOR MOST OF THE HALF SAY ANALYSTS TOYOTA WOULD ALMOST CERTAINLY HAVE POSTED A LOSS TOYOTA'S MUSCLE HAS ALSO CUSHIONED IT FROM THE BUMPS THAT HAVE SIDETRACKED NISSAN AND MAZDA AS JAPAN'S LARGEST CAR MAKER TOYOTA ENJOYS SOME TREMENDOUS ECONOMIES OF SCALE ITS COROLLA JAPAN'S BESTSELLING CAR SOLD MORE THAN TWO HUNDRED SEVENTY THREE THOUSAND UNITS HERE IN NINETEEN NINETY THREE THAT'S TWICE THE VOLUME OF NISSAN'S BIGGEST SELLER THE SENTRA ACCORDING TO TOYOTA'S FIGURES HAVING DEEP POCKETS HELPS TOO AS OF JUNE THIRTIETH TOYOTA HAD ONE POINT OH FIVE FOUR TRILLION YEN IN CASH ON HAND A SUM THAT EXPLAINS WHY THE COMPANY IS NICKNAMED TOYOTA BANK WITH THE CASH TOYOTA CAN AVOID COSTLY BORROWINGS THE INTEREST THE MONEY EARNS ALSO HELPS SHORE UP TOYOTA'S BALANCE SHEET WHILE TOYOTA HASN'T MADE ANY PAINFUL CUTBACKS IT HAS HAD A STRATEGY OF STEADY COST SAVINGS IT IS ECONOMIZING ON PARTS AND TRIMMING BACK THE NUMBER OF VARIATIONS ON THE MODELS IT OFFERS TOYOTA HAS ALSO QUIETLY PRUNED ITS JAPANESE WORK FORCE THROUGH ATTRITION TOYOTA HAD A FULL TIME PAYROLL OF SEVENTY THREE THOUSAND PEOPLE IN JUNE DOWN FROM SEVENTY FIVE THOUSAND A YEAR EARLIER TOYOTA'S CONSERVATIVE EXECUTIVES GET QUEASY WHEN THE TALK TURNS TO MORE DRAMATIC CUTS LATE LAST YEAR THEY BACKED DOWN FROM AN EFFORT TO TRIM THE CUSTOMARY WINTER BONUS JAPANESE CONSUMERS WOULD PANIC IF THE NATION'S NUMBER ONE AUTO MAKER CUT PAYOUTS THE COMPANY FIGURED THAT CONCERN FOR PUBLIC IMAGE IS LIKELY TO CONTINUE TO RESTRAIN TOYOTA IN THE FUTURE INDEED THE IMAGE ISSUE COULD GET EVEN MORE IMPORTANT AS TOYOTA CHAIRMAN SHOICHIRO TOYODA HAS JUST BEEN NAMED THE NEXT HEAD OF KEIDANREN JAPAN'S MOST PRESTIGIOUS BUSINESS LOBBY THE COMPANY IS ALSO NERVOUS ABOUT DEMORALIZING ITS OWN EMPLOYEES TOYOTA IS CARRYING OUT ITS SO CALLED B. R. PROGRAM AN EFFORT TO IDENTIFY WAYS TO IMPROVE WHITE COLLAR EFFICIENCY INITIALLY SAID PRESIDENT TATSURO TOYODA B. R. STOOD FOR BUSINESS REVOLUTION BUT REVOLUTION WAS A BIT MUCH FOR BUTTONED DOWN TOYOTA IT WOULD MAKE PEOPLE FEEL THAT WE'RE GOING TO FIRE HALF THE EMPLOYEES MR. TOYODA SAID SLASHING AT HIS NECK WITH HIS HAND SO NOW WE SAY REFORM THE QUESTION IS WHETHER REFORM WILL BE SUFFICIENT TO RETURN TOYOTA TO THE PROFIT LEVEL IT ENJOYED IN NINETEEN NINETY IN THE U. S. MARKET AMERICAN AUTO MAKERS HAVE OPENED UP A HUGE PRICE ADVANTAGE OVER TOYOTA AND OTHER JAPANESE CAR MAKERS CHAIRMAN TOYODA SAID HIS COMPANY HAS LITTLE HOPE OF CLOSING THAT GAP ANYTIME SOON QUOTE THE YEN IS TOO HIGH QUOTE HE NOTED THE COMPANY HOPES THAT MAKING ITS NEW AVALON SEDAN AND OTHER CARS AT ITS EXPANDED PLANT IN KENTUCKY WILL HELP IT HOLD DOWN PRICES IN THE U. S. IN JAPAN SAY ANALYSTS TOYOTA HAS AN OVERCAPACITY PROBLEM THAT MAY WORSEN AS THE COMPANY SHIFTS MORE PRODUCTION OVERSEAS JONATHAN DOBSON OF JARDINE FLEMING SECURITIES LIMITED FIGURES TOYOTA HAS ONE MILLION CARS' WORTH OF OVERCAPACITY IN JAPAN I THINK THEY HAVE TO CLOSE A FACTORY HE SAID SOMETHING HAS TO GIVE STORES AND DAIRIES MAY LABEL MILK AS COMING FROM COWS NOT TREATED WITH A CONTROVERSIAL NEW HORMONE BUT THE LABELS CAN'T SUGGEST THE MILK IS ANY SAFER THAN THAT FROM TREATED ANIMALS THE FOOD AND DRUG ADMINISTRATION SAID IN GUIDELINES TO BE PUBLISHED TODAY THE F. D. A. SAID COMPANIES MAY LABEL MILK ICE CREAM AND OTHER DAIRY PRODUCTS AS COMING FROM QUOTE COWS NOT TREATED WITH QUOTE RECOMBINANT BOVINE SOMATOTROPIN BUT THAT THE INFORMATION MUST BE IN QUOTE THE PROPER CONTEXT QUOTE THAT MEANS A LABEL ALSO MUST CARRY A STATEMENT LIKE NO SIGNIFICANT DIFFERENCE HAS BEEN SHOWN BETWEEN MILK DERIVED FROM RBST TREATED AND NON RBST TREATED COWS THE AGENCY SAID THE GENETICALLY ENGINEERED VERSION OF THE NATURALLY OCCURRING HORMONE WENT ON THE MARKET FRIDAY THE DRUG MAKES COWS PRODUCE MORE MILK SOME STORES DAIRIES AND FOOD PROCESSORS WORRIED ABOUT CONSUMER RESPONSE HAVE SAID THEY WOULDN'T CARRY PRODUCTS FROM TREATED ANIMALS OTHERS HAVE WANTED TO LABEL PRODUCTS AS COMING FROM ANIMALS THAT HADN'T BEEN TREATED THE AGENCY SAID LABELS MAY NOT CLAIM THAT MILK IS BST FREE BECAUSE THE HORMONE OCCURS NATURALLY IN MILK LABELS ALSO CANNOT SAY MILK IS RBST FREE BECAUSE THAT WOULD IMPLY THE MILK IS DIFFERENT CRITICS OF THE HORMONE'S USE SAY IT POSES RISKS NOT YET THOROUGHLY ADDRESSED THEY SAY COWS THAT PRODUCE MORE MILK ALSO HAVE A HIGHER RISK OF UDDER INFECTIONS THAT MUST BE TREATED WITH ANTIBIOTICS THE F. D. A. SAID THE MILK SUPPLY IS TESTED AGAINST ANTIBIOTIC RESIDUES ALREADY THE AGENCY IS ALSO SUPERVISING A PROGRAM BY THE DEVELOPER MONSANTO COMPANY TO MONITOR THE MILK SUPPLY CITING CHARGES ASSOCIATED WITH ITS ACQUISITION OF CHIPSOFT INCORPORATED INTUIT INCORPORATED POSTED A FISCAL FIRST QUARTER LOSS OF ONE HUNDRED SIXTY SEVEN POINT TWO MILLION DOLLARS OR THIRTEEN DOLLARS A SHARE SCOTT COOK INTUIT'S CHIEF EXECUTIVE OFFICER SAID THE LOSS HAD BEEN EXPECTED SINCE THE COMPANY AGREED TO ACQUIRE CHIPSOFT IN SEPTEMBER QUOTE THERE'S NO SURPRISE HERE QUOTE HE SAID MR. COOK SAID INTUIT IS EXPECTED TO POST NET LOSSES EVERY QUARTER FOR THREE YEARS BECAUSE OF ACCOUNTING WRITE OFFS RELATED TO THE MERGER HOWEVER THE COMPANY IS EXPECTED TO REMAIN PROFITABLE ON AN OPERATING BASIS TOTAL MERGER RELATED CHARGES FOR THE FISCAL FIRST QUARTER ENDED DECEMBER THIRTY FIRST WERE ONE HUNDRED EIGHTY ONE POINT SIX MILLION DOLLARS INCLUDING ONE HUNDRED FIFTY ONE MILLION DOLLARS RELATED TO PURCHASED RESEARCH AND DEVELOPMENT THAT HADN'T YET REACHED TECHNOLOGICAL FEASIBILITY INTUIT A MAKER OF POPULAR PROGRAMS FOR PERSONAL AND SMALL BUSINESS FINANCE AGREED TO ACQUIRE CHIPSOFT A PRODUCER OF CONSUMER TAX PREPARATION SOFTWARE IN A STOCK SWAP VALUED AT TWO HUNDRED EIGHTY ONE MILLION DOLLARS IN SEPTEMBER INTUIT SAID IT EXPECTED TO TAKE A CHARGE AGAINST EARNINGS OF ABOUT ONE HUNDRED MILLION DOLLARS RELATED TO THE ACQUISITION HOWEVER MR. COOK SAID THE GOOD NEWS IS THAT WE WERE ABLE TO WRITE OFF MORE ASSETS IN THE FIRST QUARTER THAN EXPECTED EXCLUDING MERGER RELATED CHARGES INTUIT SAID IT EARNED EIGHT MILLION DOLLARS OR FIFTY NINE CENTS A SHARE COMPARED WITH YEAR EARLIER NET INCOME OF THREE POINT ONE MILLION DOLLARS OR TWENTY NINE CENTS A SHARE SALES IN THE QUARTER ROSE TO SIXTY MILLION DOLLARS FROM THIRTY THREE POINT TWO MILLION DOLLARS A YEAR BEFORE ON AN OPERATING BASIS THE COMPANY BEAT ANALYSTS' EXPECTATIONS ACCORDING TO ZACKS INVESTMENT RESEARCH INCORPORATED ANALYSTS HAD EXPECTED INTUIT TO EARN BETWEEN THIRTY FIVE CENTS AND FORTY CENTS A SHARE IN HIS JANUARY TWENTY SIXTH RULE OF LAW COLUMN QUOTE REBIRTH OF THE IVY CARTEL QUOTE PROFESSOR HERSCHEL GROSSMAN ECONOMICS BROWN UNIVERSITY ARGUES ONE IVY LEAGUE COLLEGES COULD GIVE MORE FINANCIAL AID THEREFORE THEY MUST BE COLLUDING TO HOLD AID DOWN TWO COLLEGES AND UNIVERSITIES EARN PROFITS THEY THEN SHARE THEIR SURPLUSES WITH FACULTY AND ADMINISTRATORS IN THE FORM OF EXCESS COMPENSATION HE USES THESE ARGUMENTS TO SUPPORT HIS PREFERENCE FOR MERIT OVER NEED BASED FINANCIAL AID LET'S EXAMINE HIS FIRST HYPOTHESIS ALL COLLEGES AND UNIVERSITIES NOT JUST THE WEALTHY ONES COULD GIVE MORE FINANCIAL AID TO DO THIS THEY MIGHT FOR EXAMPLE DOUBLE CLASS SIZES AND HIRE FEWER FACULTY FORGO BUILDING MAINTENANCE OFFER NO EXPENSIVE LAB COURSES ET CETERA BUT BECAUSE THEY COULD DO THIS DOES THAT MEAN THAT COLLUSION IS DEFEATING THE MARKET HARDLY THE MARKET IS ASKING FOR SMALL CLASSES WELL MAINTAINED BUILDINGS AND A VARIETY OF COURSES SIMILARLY PROFESSOR GROSSMAN'S SECOND HYPOTHESIS IS EQUALLY FLAWED UNDER HIS THEORY ANYONE RECEIVING COMPENSATION ABOVE SOME MINIMUM LEVEL THAT HE WOULD SET IS ABSCONDING WITH PROFITS CONSIDER THIS REDUCTIO AD ABSURDUM PROFESSOR GROSSMAN'S OWN INSTITUTION COULD TRY TO PAY HIM A QUARTER OF HIS CURRENT SALARY HE MIGHT THEN REASONABLY ENOUGH DECAMP TO ANOTHER INSTITUTION THIS SUGGESTS THAT A MARKET IS AT WORK NOT THAT A GROUP OF FAT CATS IS DIVIDING THE SPOILS COLLEGES AND UNIVERSITIES HAVE DECIDED THAT A DIVERSE CLASS IS IMPORTANT THEY SEEK DIVERSITY IN MANY SENSES ACADEMIC PERFORMANCE RACE SOCIOECONOMIC STATUS TALENT INTERESTS NEED BASED AID IS AN EFFICIENT MEANS OF ACHIEVING THIS RESULT WHICH HAPPENS NOT ONLY TO BE SOCIALLY AND PEDAGOGICALLY DESIRABLE BUT ALSO AN IMPORTANT MEANS OF COMPETITION JUST WHAT IS MERIT HAVING ONCE BEEN A DIRECTOR OF ADMISSIONS FOR A VERY GOOD LIBERAL ARTS COLLEGE I OBSERVE THAT THERE IS A DUBIOUS CORRELATION BETWEEN A SEVENTEEN YEAR OLD'S MERIT I. E. GRADES AND TEST SCORES AND SUBSEQUENT PERFORMANCE OR SOCIAL CONTRIBUTIONS PERHAPS WE SHOULD BILL EVERYONE AT AGE FORTY FOR THEIR POST SECONDARY EDUCATION BASED ON MERIT BUT THEN WE WOULD HAVE TO DECIDE WHETHER THE MERITORIOUS ACHIEVERS SHOULD PAY MORE OR LESS FOR THE EDUCATIONAL EXPERIENCE IN SUCH A SYSTEM I SUGGEST INNER CITY SCHOOL TEACHERS SHOULD PAY NOTHING FOR THEIR EDUCATION AND IVY LEAGUE FEES BE ASSESSED ECONOMISTS AND LAWYERS PROFESSOR GROSSMAN ASSERTS THAT NEED BASED FINANCIAL AID IS A REWARD FOR BEING POOR SOME REWARD AS IF ANY FAMILY WOULD OPT FOR A LOWER INCOME BASED ON A CHANCE FOR STUDENT FINANCIAL AID IT IS BAD ENOUGH THAT RELATIVELY POORER TAXPAYERS SUBSIDIZE THE UPPER MIDDLE CLASS IN PUBLIC HIGHER EDUCATION WE OUGHT NOT TO ADVOCATE THE SAME OUTCOME IN PRIVATE EDUCATION PROFESSOR GROSSMAN IS DISMAYED THAT THE JUSTICE DEPARTMENT HAS ALLOWED AN IVY LEAGUE CARTEL TO BE REBORN THE CARTEL WAS AN ANNUAL MEETING THAT AGREED ON THE AMOUNT OF SCHOLARSHIP MONEY TO BE OFFERED TO EACH OF THOSE STUDENTS APPLYING TO MORE THAN ONE UNIVERSITY WHAT WAS THE HEINOUS ANTI COMPETITIVE BEHAVIOUR BEHAVIOR JUSTICE WAS SEEKING TO ELIMINATE THESE IVY LEAGUE COLLEGES WERE JOINTLY TRYING TO ESTABLISH THE MOST EFFECTIVE WAY TO GIVE AWAY MONEY THEIR MONEY CARTELS SEE WEBSTER ARE FORMED TO CREATE EFFECTIVE WAYS TO INCREASE INCOME I. E. TO TAKE IN MONEY BY ARTIFICIALLY LIMITING THE SUPPLY OF SOMETHING THE ORIGINAL SUIT STOOD THIS DEFINITION ON ITS HEAD IF THIS THEORY HAD SURVIVED THE UNITED WAY WOULD HAVE BEEN THE NEXT LOGICAL TARGET CLINTON ENDORSED THE U. N. CHIEF'S REQUEST FOR AUTHORITY TO ORDER AIR STRIKES THE U. S. AND ITS EUROPEAN ALLIES BEGAN MOBILIZING AT LEAST RHETORICALLY IN REACTION TO A DEADLY WEEKEND SHELLING IN SARAJEVO CLINTON SAID HE WELCOMED U. N. SECRETARY GENERAL BOUTROS GHALI'S REQUEST FOR THE POWER TO ORDER NATO AIR STRIKES ON BOSNIAN SERB POSITIONS THE U. S. ALSO RAISED THE PROSPECT OF OTHER STEPS TO PUNISH SERB AGGRESSION IN BRUSSELS EUROPEAN FOREIGN MINISTERS URGED NATO TO USE ALL MEANS NECESSARY TO END THE SIEGE OF THE BOSNIAN CAPITAL BUT GIVEN THE WEST'S RECORD OF TOUGH TALK WITHOUT ACTION IT ISN'T CLEAR WHAT STEPS WILL BE TAKEN THE NORTH ATLANTIC COUNCIL NATO'S POLITICAL ARM IS EXPECTED TO MEET TOMORROW TO DISCUSS WHETHER TO GRANT THE U. N. SECRETARY GENERAL'S REQUEST ISRAELI FOREIGN MINISTER PERES MET WITH P. L. O. CHAIRMAN ARAFAT IN CAIRO TO DISCUSS THE LONG DELAYED WITHDRAWAL OF ISRAEL'S TROOPS FROM THE GAZA STRIP AND JERICHO THE DECISION TO RENEW THE STALLED NEGOTIATIONS CAME AFTER MORE THAN A WEEK OF BICKERING EGYPT'S FOREIGN MINISTER HAS BEEN MEDIATING BETWEEN THE TWO SIDES ISRAEL LAUNCHED THREE AIR RAIDS ON REBEL POSITIONS IN SOUTH LEBANON AFTER PRO IRANIAN GUERRILLAS KILLED FOUR ISRAELI SOLDIERS AND WOUNDED FIVE OTHERS IN THEIR BLOODIEST ATTACK IN SIX MONTHS SECURITY SOURCES SAID HEZBOLLAH GUERRILLAS CLAIMED RESPONSIBILITY FOR THE AMBUSH AGAINST THE ARMORED ISRAELI PATROL ON THE EDGE OF ISRAEL'S OCCUPATION ZONE THE U. S. TRIED TO REVIVE TALKS ON RESTORING DEMOCRACY IN HAITI BUT KEY HAITIAN LAWMAKERS GAVE THE EFFORT LITTLE CHANCE AT SUCCESS ACCOMPANIED BY U. S. AMBASSADOR SWING AT LEAST SIX TOP HAITIAN LAWMAKERS FLEW TO WASHINGTON FOR TALKS WITH EXILED PRESIDENT ARISTIDE WHO HAS BEEN BLOCKED BY THE MILITARY IN HIS BID TO RETURN TO POWER SURGEON GENERAL ELDERS JOINED WITH FIVE OF HER PREDECESSORS TO ENDORSE LEGISLATION THAT WOULD PROTECT NONSMOKERS BY SEVERELY RESTRICTING SMOKING IN NEARLY EVERY NONRESIDENTIAL BUILDING IN THE COUNTRY A TOBACCO INDUSTRY REPRESENTATIVE DENOUNCED THE PROPOSAL AS GOVERNMENT QUOTE SOCIAL ENGINEERING ON A VAST SCALE QUOTE SENATOR KAY BAILEY HUTCHISON PLEADED NOT GUILTY TO FOUR FELONY CHARGES ALLEGING THAT THE TEXAS REPUBLICAN MISUSED STATE EMPLOYEES AND STATE PROPERTY FOR POLITICAL GAIN AND TAMPERED WITH GOVERNMENT RECORDS WHILE SHE WAS STATE TREASURER HUTCHISON'S TRIAL GOT UNDER WAY IN FORT WORTH AS A JUDGE BEGAN CONSIDERING PRETRIAL MOTIONS A GERMAN COURT CONVICTED TWO NEO NAZI SKINHEADS AND A BARTENDER IN THE NINETEEN NINETY TWO MURDER OF A MAN THE BARTENDER THOUGHT WAS PROBABLY JEWISH THE DEFENDANTS WERE SENTENCED TO PRISON TERMS OF EIGHT TEN AND FOURTEEN YEARS IN THE ATTACK IN WUPPERTAL THE PRESIDING JUDGE CALLED THE ATTACK AN EXPLOSION SPARKED BY RADICAL RIGHT THOUGHTS SHUTTLE DISCOVERY'S CREW DROPPED PLANS TO DEPLOY A THIRTEEN POINT FIVE MILLION DOLLAR RESEARCH SATELLITE AFTER ENCOUNTERING TECHNICAL PROBLEMS RELEASE OF THE WAKE SHIELD FACILITY WAS TO HAVE BEEN A KEY PART OF THE MISSION WHICH ENDS FRIDAY PHYSICISTS HAD HOPED TO MAKE PURE SEMICONDUCTOR FILM ON THE SATELLITE AIDING IN EFFORTS TO MAKE FASTER COMPUTERS AN AIR FORCE TITAN FOUR ROCKET BLASTED OFF FROM FLORIDA ON A ONE POINT THREE BILLION DOLLAR MISSION THAT CRITICS SAY IS NO LONGER NEEDED BECAUSE OF THE END OF THE COLD WAR THE TITAN FOUR CARRIED A MILITARY SATELLITE TO PROVIDE INSTANT COMMUNICATIONS BETWEEN THE PENTAGON AND U. S. TROOPS A BOTCHED TITAN FOUR LAUNCH IN AUGUST DESTROYED ANOTHER SATELLITE OVER CALIFORNIA IRAN SAID IT ARRESTED MORE THAN TWENTY MORALLY CORRUPT SUSPECTS IN A PLOT TO ASSASSINATE PRESIDENT RAFSANJANI LAST WEEK INCLUDING SOME LINKED TO LEFTIST GROUPS SEPARATELY A FRENCH JUDGE PROBING THE NINETEEN NINETY ONE SLAYING NEAR PARIS OF EXILED FORMER IRANIAN PRIME MINISTER BAKHTIAR IMPLICATED IRAN AND RECOMMENDED THAT NINE IRANIANS STAND TRIAL JUSTICE SOUTER WAS ASKED TO BLOCK PENNSYLVANIA'S STRICT ABORTION LAW FROM TAKING EFFECT WHILE A GROUP OF ABORTION PROVIDERS CHALLENGE ITS CONSTITUTIONALITY SIX ABORTION PROVIDERS SOUGHT AN EMERGENCY ORDER TO GIVE THEM TIME TO APPEAL A LOWER COURT RULING THAT SAID THE LAW MUST TAKE EFFECT BEFORE IT CAN BE CHALLENGED SOUTH AFRICAN NEGOTIATORS SOUGHT TO BRING THE RIGHT WING FREEDOM ALLIANCE BACK INTO DISCUSSIONS CONCERNING ALL RACE NATIONAL ELECTIONS SCHEDULED FOR LATE APRIL BUT A MEETING WITH THE ALLIANCE REPORTEDLY ENDED IN STALEMATE LAST NIGHT THE CLINTON ADMINISTRATION PROPOSED THE FIRST DEFENSE BUDGET SHAPED SPECIFICALLY FOR THE POST COLD WAR WORLD THE CONGRESSIONAL DEBATE OVER THE PROPOSED PENTAGON BUDGET FOR FISCAL NINETEEN NINETY FIVE IS LESS LIKELY TO FOCUS ON ITS SIZE AT TWO HUNDRED FIFTY TWO POINT TWO BILLION DOLLARS REQUESTED BUDGET AUTHORITY IS ACTUALLY UP THREE POINT TWO BILLION DOLLARS FROM THE CURRENT YEAR THAN ON THE ADMINISTRATION'S RADICALLY DIFFERENT PRIORITIES THE PROPOSED BUDGET WOULD BUY NO FIGHTER JETS FOR THE AIR FORCE NO TANKS FOR THE ARMY AND ONLY SIX SHIPS FOR THE NAVY IT WOULD SPEND AS MUCH ON ENVIRONMENTAL CLEANUP JOBS AS ON THE ARMY'S ENTIRE ACQUISITION PLAN AND MORE ON PEACEKEEPING THAN THE MARINES SPEND ON WEAPONS AND AMMUNITION AND WHILE SPENDING SEVEN HUNDRED TWENTY FIVE POINT NINE MILLION DOLLARS TO BOLSTER THE U. S. BALLISTIC MISSILE ARSENAL IT WOULD SPEND ABOUT HALF THAT AMOUNT ON DISMANTLING THE OLD SOVIET NUCLEAR STOCKPILE IT IS A STAND DOWN BUDGET BUT NOT A PLAN FOR WHOLESALE DEMOBILIZATION IT WOULD TRIM THE SIZE OF THE MILITARY AND SPEND ENOUGH ON OPERATIONS MAINTENANCE AND TRAINING TO KEEP THAT SMALLER FORCE READY BUT IT IS REALLY DESIGNED FOR THE FUTURE CUTTING WEAPONS PROCUREMENT TO INVEST BILLIONS IN DEFENSE RESEARCH AND SUBSIDIZE KEY PARTS OF THE DEFENSE INDUSTRY QUOTE THERE ARE NO COLD WAR RELICS IN THIS BUDGET QUOTE DEFENSE SECRETARY WILLIAM PERRY TOLD REPORTERS AT THE PENTAGON YESTERDAY MUCH MORE THAN THE FISCAL NINETEEN NINETY FOUR TREADING WATER DEFENSE BUDGET WHICH WAS PARTIALLY A BUSH ADMINISTRATION DOCUMENT THE FISCAL NINETEEN NINETY FIVE SPENDING REQUEST REFLECTS THE PRIORITIES OF THE CLINTON ADMINISTRATION OFFERING AN EXPANDED VIEW OF NATIONAL SECURITY THE BUDGET STATES THAT THE ADMINISTRATION'S FIRST PRIORITY IN FOREIGN AND DEFENSE POLICY IS THE HEALTH OF THE AMERICAN ECONOMY AND ITS COMPETITIVENESS IN A HEALTHY GLOBAL ECONOMY IT CALLS FOR EXAMPLE FOR AN INCREASED BUT UNDISCLOSED AMOUNT OF INTELLIGENCE SPENDING ON MONITORING INTERNATIONAL TRADING PRACTICES INCLUDING UNFAIR FOREIGN COMPETITION AND FOREIGN GOVERNMENT EFFORTS TO ACQUIRE SENSITIVE U. S. COMMERCIAL INFORMATION THE BUDGET IS DESIGNED TO PRODUCE A READY TECHNOLOGICALLY SUPERIOR FORCE BUT NOT A MILITARY THAT WILL BE THE WORLD'S POLICEMAN THE UNITED STATES CANNOT AND SHOULD NOT SHOULDER A DISPROPORTIONATE SHARE OF THE HUMAN AND ECONOMIC COSTS OF MAINTAINING INTERNATIONAL PEACE AND SECURITY THE BUDGET STATES MOST NOTABLY THE BUDGET WOULD SPEND AT LEAST THREE POINT FOUR SIX BILLION DOLLARS IN IMPLEMENTING THE PENTAGON'S NEW DEFENSE INDUSTRIAL POLICY TO ENSURE THAT U. S. INDUSTRY WILL BE CAPABLE OF OUTFITTING THE FORCES OF THE FUTURE THIS NEW POLICY AIMED AT KEEPING ALIVE DEFENSE UNIQUE SECTORS SUCH AS NUCLEAR SUBMARINE YARDS WHILE HELPING THE REST OF THE DEFENSE INDUSTRY SHRINK IS PROBABLY THE CLINTON ADMINISTRATION'S BIGGEST DEPARTURE FROM THE PAST AT THE PENTAGON THE SINGLE BIGGEST ITEM IN THE NEW INDUSTRIAL POLICY IS C. V. N. SEVENTY SIX THE NAVY'S NEXT AIRCRAFT CARRIER WHICH IS EXPECTED TO COST ABOUT FOUR POINT FOUR EIGHT BILLION DOLLARS HALF OF THAT COMING OUT OF NINETEEN NINETY FIVE SPENDING AIDES TO THEN DEFENSE SECRETARY LES ASPIN LATE LAST YEAR CONSIDERED DELAYING THE START OF ITS CONSTRUCTION BUT ULTIMATELY DECIDED THAT DOING SO COULD DIMINISH THE CAPABILITY OF TENNECO INCORPORATED'S NEWPORT NEWS SHIPBUILDING AND DRY DOCK COMPANY WHICH WILL BUILD THE CARRIER TO CONSTRUCT NUCLEAR PROPELLED VESSELS IN ADDITION THE BUDGET CALLS FOR SPENDING THREE HUNDRED THIRTY FIVE MILLION DOLLARS TO UPGRADE F. M. C. CORPORATION'S BRADLEY FIGHTING VEHICLES AND GENERAL DYNAMICS CORPORATION'S M. ONE ABRAMS BATTLE TANKS IN ORDER TO SUSTAIN A PRODUCTION CAPABILITY FOR TRACKED COMBAT VEHICLES SIMILARLY SEVENTY FIVE MILLION DOLLARS WILL BE SPENT TO PRESERVE THE CAPACITY TO MAKE AMMUNITION THIS YEAR'S BUDGET ALSO INCLUDES SIX HUNDRED MILLION DOLLARS TO BUILD QUOTE STRATEGIC SEALIFT QUOTE SHIPS PART OF THE THREE BILLION DOLLARS THAT WILL BE SPENT DURING THE REMAINDER OF THE DECADE TO SUBSIDIZE THE U. S. SHIPBUILDING INDUSTRY INDEED THE NAVY'S SHIP BUILDING PLAN OVER THE NEXT SIX YEARS IS DRIVEN FAR MORE BY INDUSTRIAL CONCERNS THAN BY WAR FIGHTING CONSIDERATIONS THAT PLAN CALLS FOR THE CARRIER TO BE BUILT IN FISCAL NINETEEN NINETY FIVE THE THIRD AND FINAL SEAWOLF ATTACK SUBMARINE TO BE BUILT THE FOLLOWING YEAR BY GENERAL DYNAMICS CORPORATION'S ELECTRIC BOAT UNIT AT A COST OF ABOUT TWO POINT EIGHT BILLION DOLLARS AND THEN IN NINETEEN NINETY EIGHT FOR CONSTRUCTION OF A NEW CLASS OF ATTACK SUBMARINES TO BEGIN IN OTHER SPENDING DEVOTED TO EASING THE TRANSITION INTO THE POST COLD WAR WORLD THE BUDGET CALLS FOR SPENDING TWO POINT EIGHT BILLION DOLLARS TO HELP CLOSE MILITARY BASES ONE POINT TWO BILLION DOLLARS TO HELP DEFENSE PERSONNEL LEARN NEW SKILLS AND FIND NEW WORK AND TWO BILLION DOLLARS TO HELP DEVELOP DUAL USE TECHNOLOGY THAT CAN BE USED BY BOTH THE DEFENSE AND COMMERCIAL SECTORS IT ISN'T CLEAR WHETHER CONGRESS WILL PROVE WILLING TO SPEND THE BILLIONS OF DOLLARS NEEDED TO SUPPORT THIS INDUSTRIAL POLICY OVER THE PAST TWO YEARS MANY LIBERALS ESPECIALLY THOSE FROM CALIFORNIA HAVE BEEN DETERRED FROM CUTTING BIG TICKET PROGRAMS BY THE NEED FOR JOBS BUT WITH THE U. S. ECONOMY RESURGENT THEY MAY NO LONGER FEEL THAT THE DEFENSE BUDGET NEEDS TO BE SUPPORTED AS A JOBS PROGRAM SOME CONSERVATIVES MEANWHILE WATCHING NONWAR FIGHTING PROGRAMS PROLIFERATE IN THE DEFENSE BUDGET ARE BEGINNING TO ASK WHETHER THE PRESIDENT'S PROMISE AGAINST CUTTING DEFENSE SPENDING IS A HOLLOW ONE BUT THE BUDGET UNVEILED YESTERDAY GENERALLY INSULATES THE ADMINISTRATION FROM POLITICAL ATTACKS CONSERVATIVE CRITICISM THUS FAR HAS CONCENTRATED ON MILITARY READINESS THE BUDGET ADDRESSES THAT WORRY BY ACTUALLY BOOSTING SPENDING ON OPERATIONS AND MAINTENANCE THAT IS EVERYTHING FROM FUEL FOR TANKS TO TRAINING TIME FOR PILOTS BY NEARLY FIVE BILLION DOLLARS TO NINETY TWO POINT NINE BILLION DOLLARS SOME LIBERALS MEANWHILE WILL LIKELY BE ASSUAGED BY THE CONTINUED DECLINE IN THE PENTAGON'S PROCUREMENT BUDGET WHICH WOULD DROP ONE POINT TWO BILLION DOLLARS TO FORTY THREE POINT THREE BILLION DOLLARS ABOUT ONE THIRD OF ITS LEVEL DURING THE REAGAN ADMINISTRATION'S MILITARY BUILDUP IN THE MID NINETEEN EIGHTIES I BELIEVE WE WILL GET AGREEMENT IN THE CONGRESS THAT THESE ARE THE RIGHT THEMES THE RIGHT PRIORITIES SECRETARY PERRY SAID THE CONSOLATION PRIZE FOR THE DEFENSE INDUSTRY IS THAT SPENDING ON RESEARCH AND DEVELOPMENT WHICH WAS ONCE DWARFED BY PROCUREMENT IS CLOSE TO CATCHING UP WITH THAT ACCOUNT REACHING THIRTY SIX POINT TWO BILLION DOLLARS IN NINETEEN NINETY FIVE ONE OF THE BIGGEST DEVELOPMENT PROGRAMS IS THE AIR FORCE'S F. TWENTY TWO ADVANCED TACTICAL FIGHTER WHICH IS BEING BUILT BY LOCKHEED CORPORATION AND BOEING COMPANY SOME TWO POINT FOUR SEVEN BILLION DOLLARS IS REQUESTED FOR THE F. TWENTY TWO IN FISCAL NINETEEN NINETY FIVE UP FROM TWO POINT OH EIGHT BILLION DOLLARS THIS YEAR ANOTHER MAJOR DEVELOPMENT PROGRAM IS LOCKHEED'S MILSTAR MILITARY COMMUNICATIONS SATELLITE SYSTEM ON WHICH SPENDING WOULD BE CUT SHARPLY TO SIX HUNDRED FORTY EIGHT MILLION DOLLARS THE PROGRAM APPARENTLY IS BEING TERMINATED AT SIX SATELLITES SMALLER THAN WAS ORIGINALLY ENVISIONED ONCE ENVISIONED AS THE PENTAGON'S MEANS OF GLOBAL COMMUNICATION DURING A NUCLEAR WAR IT IS NOW BEING DESCRIBED AS A STOPGAP WHILE A NEW COMMUNICATIONS SYSTEM IS DEVELOPED IN ADDITION THE FORMER STRATEGIC DEFENSE INITIATIVE WHICH LAST YEAR WAS RENAMED THE BALLISTIC MISSILE DEFENSE ORGANIZATION AND ORIENTED AWAY FROM STAR WARS SPACE BASED SATELLITE ACTIVITY AND MORE TOWARD REGIONAL MISSILE DEFENSES IS BUDGETED FOR THREE POINT TWO FIVE BILLION DOLLARS UP FROM TWO POINT SEVEN FOUR BILLION DOLLARS MOST OF ITS SPENDING IS IN R. AND D. THIS YEAR'S BUDGET CALLS FOR TERMINATING DOZENS OF SMALLER PROCUREMENT PROGRAMS AND LETTING THE SHRINKING MILITARY LIVE OFF THE STOCK BUILT UP DURING THE REAGAN BUILDUP THE MOST SIGNIFICANT CUTS END A FEW OBSCURE HELICOPTER PROGRAMS CUMULATIVELY THE SAVINGS TOTAL THREE POINT NINE BILLION DOLLARS A SENIOR PENTAGON OFFICIAL SAID IN ADDITION THE MILITARY CONSTRUCTION BUDGET WAS SLASHED BY ONE BILLION DOLLARS THE HELICOPTER CUTS LEAVE ONLY THREE MAJOR AIRCRAFT PROGRAMS IN PLACE THE F. TWENTY TWO WHICH WON'T BEGIN DELIVERY FOR SEVERAL YEARS AND TWO MCDONNELL DOUGLAS CORPORATION PROGRAMS THE NAVY PLANS TO SPEND TWO POINT FIVE EIGHT BILLION DOLLARS BUYING TWENTY FOUR F. SLASH A EIGHTEEN STRIKE FIGHTERS AND DEVELOPING THE NEW VERSION OF THAT AIRCRAFT THE AIR FORCE MEANWHILE IS SLATED TO SPEND TWO POINT NINE NINE BILLION DOLLARS ON MCDONNELL DOUGLAS'S TROUBLED C. SEVENTEEN MILITARY CARGO JET PROGRAM WHICH IN DECEMBER WAS PUT ON AN UNUSUAL PROBATION BY THE PENTAGON THE FINE PRINT OF THE BUDGET DOCUMENTS RELEASED BY THE PENTAGON STATES THAT THE COST OF EACH OF THE C. SEVENTEENS BEING DELIVERED IN FISCAL NINETEEN NINETY FIVE HAS RISEN TO FOUR HUNDRED SIXTY ONE POINT FOUR MILLION DOLLARS FAR HIGHER THAN PAST ESTIMATES AND LIKELY TO PROVOKE HOWLS IN CONGRESS AS SOMEONE NOT FORTUNATE ENOUGH TO LIVE AND WORK IN NEW YORK CITY BUT FORTUNATE ENOUGH TO BE ABLE TO PARTAKE OF MUCH OF WHAT IT HAS TO OFFER I WAS AMAZED TO READ SUSAN HAUSER'S LEISURE AND ARTS ARTICLE QUOTE BORED ON FIFTH AWAY FROM HOME TOGETHER QUOTE DECEMBER TWENTY EIGHTH ABOUT SOMEONE VISITING NEW YORK AND FINDING NOTHING FOR HER AND HER CHILDREN TO DO INSTEAD OF STAYING COOPED UP IN THE PLAZA HOTEL ALL SHE HAD TO DO WAS WALK ACROSS ONE STREET TO F. A. O. SCHWARTZ OR ACROSS ANOTHER TO CENTRAL PARK OR OUT THE DOOR AND AROUND THE CORNER TO RUMPLEMAYER'S MUCH MORE FUN AND LESS EXPENSIVE THAN ROOM SERVICE OR OUT THE DOOR AND DOWN THE STREET TO THE TREE AT ROCKEFELLER CENTER NOT TO MENTION THE CHRISTMAS SHOW THE MUSEUMS THE DISPLAY OF TOY SOLDIERS AND SUBMARINES AT THE FORBES GALLERY ET CETERA ET CETERA WHAT A SHAME SHE SPENT ALL THE MONEY SHE DUTIFULLY ACCOUNTS FOR IN HER ARTICLE AND RECEIVED SUCH A POOR RETURN SHE MUST COME BACK AND DO HERSELF AND HER CHILDREN A FAVOR AND VENTURE OUT INTO THE MOST WONDERFUL CITY IN THE WORLD TOGETHER THEIR FANTASIES WILL BE FULFILLED AND THEY WILL FIND REALITY IN NEW YORK EXCEEDS EXPECTATIONS MS. HAUSER'S STORY ON HER FAMILY'S STAY AT THE PLAZA BRINGS TO MIND OUR OWN LONG WEEKEND IN NEW YORK THIS TIME LAST YEAR WHILE NOT THE PLAZA THE MIDTOWN MARRIOTT PROVED AN EXCELLENT BASE FOR THREE DAYS OF TYPICAL NEW YORK CITY TOURISM JOGGING IN CENTRAL PARK BROADWAY THEATER F. A. O. SCHWARTZ THE METROPOLITAN MUSEUM BLOOMINGDALES ET CETERA WHEN DAN THEN ELEVEN NOW TWELVE RECENTLY RE VIEWED HOME ALONE TWO HE BEGGED US TO TAKE HIM BACK TO NEW YORK THOUGH I DON'T BELIEVE HIS IMAGE OF THE CITY'S WONDER RELATES TO MS. HAUSER'S CONCEPT OF HANGING OUT IN THE CONFINES OF A HOTEL THE RECENT DECISION BY THE JUSTICE DEPARTMENT TO DROP ITS ANTITRUST CASE AGAINST THE IVY LEAGUE COLLEGES AND M. I. T. SHOWS THE POLITICAL CLOUT OF OUR ELITE EDUCATIONAL INSTITUTIONS IT ALSO MEANS THAT THESE COLLEGES WILL BE ABLE TO COLLUDE AGAIN TO RESTRICT FINANCIAL AID AND TO DENY UNDERGRADUATES THE BENEFITS OF MERIT SCHOLARSHIPS FIRST SOME HISTORY ALMOST FORTY YEARS AGO THE EIGHT COLLEGES IN THE IVY GROUP BROWN COLUMBIA CORNELL DARTMOUTH HARVARD PENNSYLVANIA PRINCETON AND YALE TOGETHER WITH M. I. T. FORMED A CARTEL TO LIMIT COMPETITION FOR DESIRABLE STUDENTS SUCH STUDENTS ARE GENERALLY UNDERGRADUATES WHO HAVE EXCEPTIONAL ACADEMIC ARTISTIC OR ATHLETIC TALENT OR WHO ARE FROM HISTORICALLY UNDERREPRESENTED RACIAL AND ETHNIC GROUPS THE MEMBERS OF THE CARTEL AGREED NOT TO AWARD QUOTE MERIT QUOTE SCHOLARSHIPS TO UNDERGRADUATES INSTEAD THEY AGREED TO GIVE FINANCIAL AID THAT IS TO DISCOUNT THE TUITION OF UNDERGRADUATES ONLY ON THE BASIS OF NEED TO ENFORCE THIS AGREEMENT THE IVY COLLEGES AND M. I. T. HELD AN ANNUAL MEETING CALLED OVERLAP AT WHICH THEY DECIDED ON THE DOLLAR AMOUNTS OF FINANCIAL AID THAT THEY PLANNED TO OFFER INDIVIDUAL STUDENTS FOR DECADES THIS CARTEL FUNCTIONED OPENLY AND WITHOUT LEGAL CHALLENGE BUT IN NINETEEN NINETY ONE THE JUSTICE DEPARTMENT BROUGHT AN ANTITRUST ACTION AGAINST THE IVY COLLEGES AND M. I. T. FOR COLLUDING TO FIX TUITION CHARGES THE EIGHT IVY COLLEGES QUICKLY ENTERED INTO A CONSENT DECREE THAT TERMINATED OVERLAP M. I. T. HOWEVER DECIDED TO LITIGATE LAST MONTH APPARENTLY UNDER STRONG POLITICAL PRESSURE THE JUSTICE DEPARTMENT CAPITULATED THE SETTLEMENT BETWEEN JUSTICE AND M. I. T. ALLOWS COLLEGES TO PARTICIPATE IN COOPERATIVE FINANCIAL AID ARRANGEMENTS THE COLLEGES CAN AGREE TO PROHIBIT MERIT SCHOLARSHIPS AND EXCHANGE INFORMATION TO COORDINATE THEIR NEED BASED FINANCIAL AID THE JUSTICE DEPARTMENT IS ALSO AGREEABLE TO AMENDING THE NINETEEN NINETY ONE IVY CONSENT DECREE TO INCLUDE THE TERMS OF THE M. I. T. SETTLEMENT THE SETTLEMENT'S ONLY SUBSTANTIAL RESTRICTION IS THAT THE PARTICIPANTS MUST PRACTICE NEED BLIND ADMISSIONS WHICH MEANS THAT THEY MUST MAKE ADMISSIONS DECISIONS WITHOUT CONSIDERING WHICH APPLICANTS NEED FINANCIAL AID THEY MUST ALSO GIVE EACH ADMITTED APPLICANT ALL THE FINANCIAL AID THAT HE OR SHE NEEDS M. I. T. AND ALL THE IVY COLLEGES EXCEPT BROWN ALREADY CLAIM TO SATISFY THESE CONDITIONS IN DEFENDING THEIR CARTEL M. I. T. AND THE IVY COLLEGES ARGUE THAT THEY ARE ALREADY BUDGETING ABOUT THE MAXIMUM AMOUNT OF MONEY FOR FINANCIAL AID THAT THEY CAN AFFORD HENCE IF COMPETITION WERE TO FORCE THEM TO OFFER MERIT SCHOLARSHIPS THEY WOULD HAVE TO DECREASE FINANCIAL AID TO NEEDY STUDENTS THIS ARGUMENT IS SPECIOUS THE RICHEST IVY COLLEGES HARVARD YALE AND PRINCETON HAVE SUBSTANTIALLY LARGER INCOME FROM ENDOWMENTS AND ANNUAL GIFTS THAN THE OTHER IVY COLLEGES AND M. I. T. BUT THE RICHEST COLLEGES DEVOTE A SMALLER FRACTION OF THEIR GROSS REVENUE TO FINANCIAL AID FOR UNDERGRADUATES THIS ANOMALY SUGGESTS THAT COLLUSION ENABLES THE RICHER PARTICIPANTS TO GIVE LESS FINANCIAL AID THAN THEY WOULD GIVE UNDER COMPETITION IT ALSO SUGGESTS THAT THE RICHEST COLLEGES HAVE NOT BEEN BUDGETING THE MAXIMUM AFFORDABLE AMOUNT TO UNDERGRADUATE FINANCIAL AID THEY COULD INCREASE SIGNIFICANTLY THE AMOUNT OF FINANCIAL AID THAT THEY GIVE TO UNDERGRADUATES SIMPLY BY DEVOTING TO UNDERGRADUATE FINANCIAL AID THE SAME FRACTION OF GROSS REVENUE AS DO SOME OF THE POORER COLLEGES M. I. T. AND THE IVY COLLEGES WANT US TO BELIEVE THAT THEIR COSTS OF PROVIDING AN UNDERGRADUATE EDUCATION CANNOT BE REDUCED IN ORDER TO FREE UP FUNDS FOR ADDITIONAL FINANCIAL AID BUT THE COSTS OF THESE COLLEGES AND OF OTHER NOT FOR PROFIT ENTERPRISES ARE ARTIFICIALLY INFLATED THE NOT FOR PROFIT DESIGNATION ALLOWS COLLEGES TO KEEP THEIR BOOKS IN SUCH A WAY THAT THEY REPORT NO PROFITS BUT THIS BOOKKEEPING CONTRIVANCE DOESN'T MEAN THAT COLLEGES DON'T EARN WHAT AN ECONOMIST WOULD PROPERLY CALL PROFITS RATHER IT MEANS THAT THEY INCLUDE IN WHAT THEY CALL THEIR COSTS SOME AMOUNTS THAT ARE REALLY PROFITS IN FACT PRIVATE COLLEGES FUNCTION SIMILARLY TO PRODUCER COOPERATIVES OR PARTNERSHIPS THE PARTNERS IN THIS CASE THE FACULTY AND ADMINISTRATORS SHARE ANY EXCESS REVENUE OVER TRUE COSTS IN THE FORM OF GENEROUS COMPENSATION AND PERQUISITES ONE HAS TO CONCLUDE THAT THE IVY COLLEGES AND M. I. T. COULD CONTINUE GENEROUS NEED BASED FINANCIAL AID EVEN IF THEY WERE ALSO OFFERING MERIT SCHOLARSHIPS BUT WOULD THEY DO SO NOT NECESSARILY IT IS POSSIBLE THAT THEY WOULD REDUCE NEED BASED FINANCIAL AID IF COMPETITION FOR DESIRABLE STUDENTS INTENSIFIED AND MERIT SCHOLARSHIPS DEPRESSED NET TUITION REVENUE BUT THIS OUTCOME IF IT WERE TO OCCUR WOULD NOT HAVE BEEN FORCED ON THE COLLEGES RATHER IT WOULD RESULT FROM THEIR CHOICE TO REDUCE NEED BASED FINANCIAL AID RATHER THAN TO CUT COSTS WHAT WOULD BE THE SOCIAL CONSEQUENCES OF REPLACING NEED BASED FINANCIAL AID WITH MERIT SCHOLARSHIPS IN DEFENDING ITS SETTLEMENT WITH M. I. T. THE JUSTICE DEPARTMENT STRESSED THE VALUE OF NEED BASED FINANCIAL AID IN ENHANCING EQUAL OPPORTUNITY BUT NEED BASED FINANCIAL AID ALSO HAS THE UNDESIRABLE EFFECT OF REDUCING THE INCENTIVE FOR FAMILIES TO MAKE THEIR OWN PROVISIONS FOR PAYING COLLEGE TUITION THE LARGER A FAMILY'S INCOME AND SAVINGS AND THE FEWER CHILDREN IT HAS THE SMALLER THE AMOUNT OF NEED BASED FINANCIAL AID FOR WHICH IT QUALIFIES IN THIS WAY NEED BASED FINANCIAL AID PENALIZES INDUSTRIOUS AND THRIFTY FAMILIES WHO HAVE WORKED SAVED AND LIMITED FAMILY SIZE IN ORDER TO BE ABLE TO PAY TO SEND THEIR CHILDREN TO COLLEGE IN SHORT NEED BASED FINANCIAL AID ENCOURAGES SENSIBLE FAMILIES TO BE IMPRUDENT ACCORDING TO THIS ANALYSIS IT IS NOT SURPRISING THAT THE SAVINGS OF MOST MIDDLE INCOME FAMILIES ARE INADEQUATE FOR THEM TO PAY TO SEND THEIR CHILDREN TO THE IVY COLLEGES AND M. I. T. OR THAT APPLICANTS FROM MIDDLE INCOME FAMILIES NEED MORE AND MORE FINANCIAL AID RESPONDING TO THE INCENTIVES CREATED BY NEED BASED FINANCIAL AID PERHAPS MIDDLE INCOME FAMILIES HAVE COME TO REGARD SAVING TO SEND CHILDREN TO COLLEGE AS POINTLESS AND FOOLISH MERIT SCHOLARSHIPS WOULD HELP TALENTED APPLICANTS FROM MIDDLE CLASS FAMILIES WHO DO NOT QUALIFY FOR NEED BASED FINANCIAL AID AND WOULD ALSO MEAN MORE GENEROUS FINANCIAL AID FOR TALENTED APPLICANTS FROM POOR FAMILIES WITH THE UNDERGRADUATE FINANCIAL AID BASED ON MERIT FINANCIAL AID WOULD NOT BE A REWARD FOR BEING POOR AS IT OFTEN IS NOW RATHER IT WOULD BE A PRIZE AVAILABLE TO ANY APPLICANT WHO RANKS AT THE TOP OF THE APPLICANT POOL MR. GROSSMAN IS A PROFESSOR OF ECONOMICS AT BROWN UNIVERSITY PENTECH INTERNATIONAL INCORPORATED IS POISED TO REPORT SHARPLY HIGHER RESULTS THANKS TO A STRATEGY OF PITCHING ITS WRITING INSTRUMENTS BEYOND THE PEAK BACK TO SCHOOL SEASON DAVID MELNICK PRESIDENT EXPECTS TO REPORT THIS WEEK THAT EARNINGS AND SALES FOR THE FISCAL FIRST QUARTER USUALLY A SLOW PERIOD ROSE MORE THAN FIFTY PERCENT THE QUARTER ENDED DECEMBER THIRTY FIRST A YEAR EARLIER PENTECH WHICH MAKES DESIGNER PENS PENCILS AND MARKERS HAD NET INCOME OF FOUR HUNDRED TWENTY SEVEN THOUSAND DOLLARS OR FOUR CENTS A SHARE ON SALES OF SIX POINT FOUR MILLION DOLLARS QUOTE THE BIG THRUST HAS BEEN TO PRESENT PENTECH AS A COMPANY YOU CAN BUY PRODUCTS FROM ALL YEAR ROUND QUOTE MR. MELNICK SAID IN AN INTERVIEW THE BIGGEST MONTHS FOR THE COMPANY TRADITIONALLY ARE LATE SPRING AND EARLY SUMMER WHEN RETAILERS BEGIN STOCKING THEIR SHELVES WITH SUPPLIES FOR STUDENTS RETURNING TO SCHOOL BUT BEGINNING LAST YEAR PENTECH BEGAN MERCHANDISING PRODUCTS WITH HOLIDAY DESIGNS TO INCREASE ITS OFF PEAK BUSINESS FOR EXAMPLE PENTECH SELLS PENCILS DURING HALLOWEEN AS AN ALTERNATIVE TO CANDY FOR TRICK OR TREATERS THIS YEAR PENTECH IS BROADENING THE PROGRAM IT IS ALSO BRANCHING INTO NEW BUSINESSES THAT HAVE LESS OF A SEASONAL SWING SUCH AS ITS NEW COLOR CLUB PRODUCT LINE DESIGNED TO APPEAL TO THE CHILDREN'S ACTIVITY MARKET AND COME THIS SPRING PENTECH WILL MORE AGGRESSIVELY ENTER THE COSMETIC PENCIL BUSINESS MAKING THE COSMETIC PENCILS IS A NICE DIVERSIFICATION BUT WE ARE USING A LOT OF SKILLS WE LEARNED IN THE PENCIL FACTORY MR. MELNICK SAID HE ADDED THAT THE SAME CHANNELS THE COMPANY USES FOR ITS WRITING INSTRUMENTS CAN BE USED TO SELL THE COSMETIC PENCILS PENTECH WHICH ALREADY MAKES ABOUT FORTY PERCENT OF ITS PRODUCTS IN A TWO YEAR OLD NEW JERSEY PLANT CALLED SAWDUST PENCIL COMPANY IS OUTFITTING A SEPARATE FACILITY NEARBY TO PRODUCE COSMETIC PENCILS THAT PLANT IS EXPECTED TO BE FULLY OPERATIONAL IN THE NEXT FEW MONTHS THE BALANCE OF ITS PRODUCTS ARE IMPORTED AFTER NEARLY SEVEN DECADES OF PREDICTABLE POLITICS HO HUM CAMPAIGNING AND ONE PARTY CONTROL OF POWER THE MEXICAN PRESIDENTIAL ELECTION SEASON IS ABOUT TO GET INTERESTING THE REASON CAN BE SUMMED UP IN ONE WORD CHIAPAS THE UPRISING BY ETHNIC INDIANS IN THE SOUTHERN STATE OF CHIAPAS HAS STIRRED UP OLD PROBLEMS STARK POVERTY VAST DISPARITIES IN WEALTH POLITICAL CORRUPTION AT A CRITICAL TIME THE RESULT IS A SURPRISINGLY OPEN POLITICAL SEASON FAR DIFFERENT FROM THE USUAL RESIGNED WAIT FOR THE RULING PARTY CANDIDATE TO BE ELECTED AS HE HAS BEEN EVERY SIX YEARS SINCE THE NINETEEN TWENTIES THIS TIME AROUND THE TRADITIONAL OPPOSITION PARTY HAS ALL BUT DISAPPEARED THE LEFTIST PARTY HAS SUDDENLY RESURFACED AND RUMBLINGS OF DISSENSION HAVE APPEARED IN THE NORMALLY MONOLITHIC RULING PARTY EVEN IF THE RULING PARTY CANDIDATE DOES WIN IN AUGUST STILL THE MOST LIKELY OUTCOME THE SOUL SEARCHING THAT IS OCCURRING DURING THIS ELECTORAL SEASON WILL MEAN A CHANGE IN PRIORITIES FOR MEXICO HAVING FOCUSED OVER THE PAST FIVE PLUS YEARS ON REVIVING ITS ECONOMY GOVERNMENT OFFICIALS SAY MEXICO WILL NOW CONCENTRATE ON HOW WEALTH CAN BE DISTRIBUTED MORE EQUITABLY HAVING LEFT THE POLITICAL SYSTEM LARGELY UNTOUCHED TO MAINTAIN STABILITY IN THE FACE OF BROAD ECONOMIC CHANGES THE COUNTRY WILL DEAL EVEN MORE AGGRESSIVELY WITH THE CORRUPTION THAT HAS PLAGUED POLITICS FOR DECADES QUOTE CHIAPAS HAS CALLED ON THE SOCIAL CONSCIENCE OF US ALL QUOTE SAYS LUIS DONALDO COLOSIO THE PRESIDENTIAL CANDIDATE OF THE RULING P. R. I. PARTY NOW MORE THAN EVER IT'S IMPORTANT THAT MEXICO UNDERGO A PROFOUND SOCIAL CHANGE WE HAVE TO PAY ATTENTION TO POOR REGIONS TO SOCIAL PROGRAMS AND TO DEMOCRACY MR. COLOSIO SAYS THAT IF ELECTED HE WILL CONTINUE THE BASIC ECONOMIC POLICIES THAT PRESIDENT CARLOS SALINAS HAS USED TO RESTORE MEXICO'S INTERNATIONAL CREDIBILITY BUT WILL TRY TO FOCUS MORE ON ECONOMIC GROWTH AS A WAY TO BENEFIT ALL MEXICANS HE ALSO SAYS HE WOULD DECENTRALIZE GOVERNMENT ENDING THE PRACTICE OF NAMING OFFICIALS IN THE CENTRAL GOVERNMENT AS THE RULING PARTY'S GUBERNATORIAL CANDIDATES INSTEAD LOCAL OFFICIALS WOULD BE CHOSEN WHAT PEOPLE IN CHIAPAS AND ELSEWHERE DO NOT ACCEPT ANY MORE ARE DECISIONS MADE BY THE CENTRAL GOVERNMENT AND IMPOSED IN AN AUTHORITARIAN WAY HE SAYS IF CUAUHTEMOC CARDENAS THE PRESIDENTIAL CANDIDATE OF THE LEFTIST P. R. D. PARTY WERE TO WIN HE WOULD GO EVEN FURTHER IN REORIENTING MEXICO HE CALLS THE ECONOMIC SITUATION VERY PRECARIOUS AND SAYS THE COUNTRY NEEDS A MORE JUST POLITICAL AND ECONOMIC SYSTEM NO MATTER WHO WINS AFTER DECADES DURING WHICH POVERTY WAS JUST ACCEPTED AS A FACT OF LIFE IN MEXICO THE DISPARITY OF WEALTH HAS THRUST ITSELF INTO THE POLITICAL CAMPAIGN INTELLECTUALS ARE SAYING CHIAPAS COULD TURN OUT TO BE A DEFINING MOMENT IN MEXICAN HISTORY A POTENT SYMBOL OF THE VAST DIVIDE BETWEEN MEXICO'S RICH AND POOR AN OFFICIAL IN THE COLOSIO CAMPAIGN ADDS THAT IT'S SHAMEFUL TRULY SHAMEFUL THAT WE HAD TO WAIT FOR SOMETHING LIKE CHIAPAS TO HAPPEN TO MAKE US AWARE OF HOW BAD THINGS ARE CHIAPAS ALSO ENSURES THAT POLITICAL REFORM WILL BECOME A MAJOR ISSUE IN THE CAMPAIGN AND THAT AFTER YEARS OF TALKING ABOUT ENDING THE RULING PARTY'S STRANGLEHOLD ON THE ELECTORAL SYSTEM SOMETHING MAY FINALLY CHANGE THAT IS PARTLY BECAUSE THE HARD LINERS WITHIN THE GOVERNMENT FOUGHT A BEHIND THE SCENES BATTLE TO TRY TO CRUSH THE REBELLION MILITARILY BUT AFTER SEVERAL TENSE DAYS LOST OUT TO OTHERS IN THE RULING PARTY WHO ADVOCATE CHANGE QUOTE THE RISKS OF THE HARD LINERS ARE STILL THERE BUT THEY'RE MORE ISOLATED QUOTE SAYS MANUEL CAMACHO SOLIS THE GOVERNMENT'S NEGOTIATOR WITH THE REBELS AND BY ALL ACCOUNTS THE RUNNER UP TO MR. COLOSIO IN THE RULING PARTY'S SELECTION OF ITS PRESIDENTIAL CANDIDATE ANALYSTS ALSO SAY CONCERNS ABOUT CHIAPAS MADE IT MUCH EASIER TO PUSH THROUGH SOME RECENT ELECTORAL REFORMS WHICH IN A MARKED CHANGE WERE SIGNED BY ALL THE MAJOR POLITICAL PARTIES HERE WE WILL HAVE A MUCH BETTER CLIMATE IN NINETEEN NINETY FOUR MR. CAMACHO SAYS PEOPLE INSTEAD OF HAVING DEMONSTRATIONS IN THE STREETS WILL START DISCUSSING POLITICS THERE WILL BE MORE PRESSURE ON THE RULING PARTY TO REFORM ITSELF AND WE CAN NOW GO TO THE GUERRILLAS AND SHOW THEM THAT WE'VE BEGUN TO CHANGE IN RETROSPECT IT IS NO SURPRISE THAT THE TROUBLE STARTED IN CHIAPAS MANY OF ITS MORE THAN THREE MILLION INHABITANTS DESCEND DIRECTLY FROM THE PROUD MAYAN EMPIRE YET THEY LIVE IN MEXICO'S MOST IMPOVERISHED STATE COFFEE PRICES HAVE TUMBLED WIPING OUT THE LIVELIHOODS OF MANY OIL JOBS HAVE DISAPPEARED AS THE STATE OIL COMPANY PETROLEOS MEXICANOS HAS STREAMLINED ITSELF MEANWHILE CATTLE RANCHERS HAVE PUSHED POOR FARMERS OFF THEIR LAND SOMETIMES VIOLENTLY TO CREATE MORE GRAZING ROOM WITH THE STATE GOVERNMENT STANDING SOLIDLY BEHIND THE BUSINESS INTERESTS DOZENS OF DISCONTENTED INDIANS HAVE MYSTERIOUSLY DISAPPEARED MAKING CHIAPAS A ROUTINE STOP FOR GROUPS INVESTIGATING HUMAN RIGHTS ABUSES IN MEXICO THE INITIAL REACTION AMONG MANY MEXICANS WAS TO PLAY DOWN THE SIGNIFICANCE OF THE UPRISING CHIAPAS AFTER ALL IS ALMOST ANOTHER COUNTRY IT IS FULL OF MAYAN INDIANS DEEP IN THE RAIN FOREST SEEMING TO HAVE MORE IN COMMON WITH GUATEMALA THAN WITH THE RAPIDLY INDUSTRIALIZING DESERT STATES CLOSER TO THE U. S. BUT THE THIRD WORLD CONDITIONS THERE CONTRAST SO SHARPLY WITH THE FIRST WORLD ASPIRATIONS OF SO MUCH OF MEXICO THAT THEY QUICKLY BEGAN TO RESONATE THROUGHOUT THE COUNTRY TENS OF THOUSANDS OF PEOPLE TURNED OUT IN THE CENTER OF MEXICO CITY TO SUPPORT THE REBELS AND DEMONSTRATIONS HAVE SHUT DOWN HIGHWAYS LEADING OUT OF THE CAPITAL CHIAPAS IS BECOMING THE GENERIC TERM FOR POVERTY STRICKEN AREAS THROUGHOUT MEXICO AND THERE ARE MANY AREAS JUST OUTSIDE MEXICO CITY ARE FLAT ON THEIR BACKS BECAUSE MINING JOBS ARE DISAPPEARING CORN GROWERS ARE LOSING GOVERNMENT SUBSIDIES THAT HAD LET THEM MAKE PROFITS EVEN IF THEIR COSTS WERE FIFTY PERCENT ABOVE THE WORLD AVERAGE AND THEY KNOW THEIR HARD DRY LAND WON'T LET THEM COMPETE WITH THE U. S. GRAIN BELT FARMERS COMPLAIN THAT THEY CAN'T AFFORD LOANS BECAUSE INTEREST RATES ARE SO HIGH AND SOMETIMES SHOW THEIR DISPLEASURE BY OCCUPYING BANKS SQUATTERS COVER THE COUNTRY EARNING THE NICKNAME PARACHUTISTS BECAUSE THEY SEEM TO BE ABLE TO DROP INTO ANY AREA THE ISSUE IS LIKELY TO REMAIN PROMINENT FOR A LONG TIME PARTLY BECAUSE THE REBELS HAVE SHOWN THEMSELVES TO BE SURPRISINGLY SOPHISTICATED IN KEEPING THEIR CAUSE ALIVE EVEN THOUGH IT HAS BEEN WEEKS SINCE THERE HAS BEEN REAL FIGHTING THE ENIGMATIC REBEL LEADER KNOWN AS SUBCOMMANDER MARCOS HAS MANAGED TO SEND OCCASIONAL COMMUNIQUES TO NEWSPAPERS IN MEXICO CITY WHICH PUBLISH THEM HE ALTERNATES BETWEEN ANGER AND A SURPRISING SENSE OF HUMOR IN A LETTER PUBLISHED FRIDAY HE WROTE QUOTE THE COUNTRY WANTS CHIAPAN OIL CHIAPAN ELECTRIC ENERGY CHIAPAN RAW MATERIALS THE CHIAPAN WORK FORCE IN OTHER WORDS CHIAPAN BLOOD BUT IT DOESN'T WANT THE OPINION OF CHIAPAN INDIANS THE LETTERS ARE SO PASSIONATE AND CAREFULLY CRAFTED THAT OCTAVIO PAZ WINNER OF THE NOBEL PRIZE FOR LITERATURE HAS WRITTEN THAT THEY HAVE MOVED HIM DEEPLY WITH CHIAPAS CATCHING PEOPLE'S ATTENTION THE COUNTRY IS FINALLY FOCUSING ON ITS INEQUITIES AND THEY ARE STARTLING THE MINIMUM WAGE ADJUSTED FOR INFLATION HAS DROPPED TWENTY FOUR PERCENT SINCE NINETEEN EIGHTY EIGHT IT'S NOT JUST THE POOREST WHO HAVE SUFFERED EITHER ONE STUDY HAS FOUND THAT THE BOTTOM FORTY PERCENT OF THE POPULATION SAW THEIR TOTAL SHARE OF MEXICO'S WEALTH DROP TO TWELVE PERCENT FROM FIFTEEN PERCENT DURING THE PAST FIVE YEARS THE SAFETY NET IN THE PROGRAM OF PRESIDENT SALINAS WAS AN ANTIPOVERTY MEASURE CALLED SOLIDARITY UNDER WHICH THE FEDERAL GOVERNMENT PROVIDES RAW MATERIALS NEEDED TO IMPROVE BASIC SERVICES TO COMMUNITIES IF THEIR MEMBERS DO THE WORK THE PROGRAM HAS SPENT MORE THAN NINE BILLION DOLLARS AND HAS REFURBISHED MORE THAN SEVENTY FIVE THOUSAND SCHOOLS PAVED THOUSANDS OF MILES OF ROADS HELPED BRING ELECTRICITY AND DRINKING WATER TO MORE THAN TEN MILLION PEOPLE AND ASSISTED IN PROVIDING DRAINAGE SERVICES TO EIGHT MILLION BUT SOLIDARITY DIDN'T PROVIDE PAYING JOBS OR ANY OTHER WAY TO CLIMB OUT OF POVERTY THE MIDDLE CLASS WHICH NEEDS TO GROW IF MEXICO IS TO CONTINUE ITS ECONOMIC TURNAROUND HASN'T BEEN WITHOUT ITS PROBLEMS EITHER ALTHOUGH THERE AREN'T ANY GOOD NUMBERS ON THE GROWTH OF THE MIDDLE CLASS NORA LUSTIG A SENIOR FELLOW AT THE BROOKINGS INSTITUTION IN WASHINGTON D. C. SAYS THAT INFLATION ADJUSTED WAGES WHICH PROVIDE A GOOD MEASURE OF HOW THE SALARIED MIDDLE CLASS HAS DONE HAVE REBOUNDED THIRTY TWO POINT THREE PERCENT SINCE NINETEEN EIGHTY EIGHT BUT THIS JUST GETS SALARIES BACK TO ABOUT WHERE THEY WERE IN NINETEEN EIGHTY THREE BEFORE MEXICO'S ECONOMY COLLAPSED IN ADDITION A STUDY BY THE AUTONOMOUS NATIONAL UNIVERSITY OF MEXICO FOUND THAT SIXTY PERCENT OF THE PEOPLE IN RELATIVELY WEALTHY MEXICO CITY STILL LIVE IN WHAT IT CALLED UNACCEPTABLE ECONOMIC CONDITIONS CRISTINA ESCOBAR MANAGER OF RESTAURANT MIRAVALLE IN MEXICO CITY SAYS THAT EVEN THOUGH THE DAYS OF WILD INFLATION ARE GONE THE COSTS OF RAISING HER TWO CHILDREN KEEP RISING FASTER THAN HER INCOME MAYBE FOR THE RICH COSTS HAVE FALLEN SHE SAYS BUT NOT FOR US IN THE MIDDLE CLASS THE RICH ARE THE CLEAR WINNERS OF THE PAST FEW YEARS BECAUSE THEY HAVE HAD THE MONEY TO BUY REAL ESTATE AND STOCKS WHICH HAVE BENEFITED SO MUCH FROM THE NEW OPTIMISM ABOUT MEXICO'S FUTURE THE MEXICAN STOCK MARKET FOR INSTANCE HAS INCREASED ITS VALUE BY ONE HUNDRED NINETY ONE BILLION DOLLARS SINCE NINETEEN EIGHTY SEVEN MEXICANS HOLD ABOUT THREE QUARTERS OF THE EQUITY SO THEY HAVE SEEN THE VALUE OF THEIR STOCK HOLDINGS RISE ABOUT ONE HUNDRED FORTY THREE BILLION DOLLARS BUT AS OF THE END OF NINETEEN NINETY TWO THE LAST TIME FIGURES WERE PUBLISHED LESS THAN ZERO POINT TWO PERCENT OF MEXICANS HAD BROKERAGE ACCOUNTS THAT MEANS THE HUGE INCREASE IN VALUE FOUND ITS WAY INTO THE HANDS OF A SMALL MINORITY SINCE MUTUAL FUNDS HOLD ONLY A SMALL PERCENTAGE OF STOCK AND PENSION FUNDS AND OTHER INSTITUTIONAL INVESTORS ARE ALMOST NONEXISTENT FUELED BY THE SURGE ON THE STOCK MARKET THE NUMBER OF MEXICAN BILLIONAIRES HAS RISEN TO THIRTEEN LAST YEAR FROM TWO IN NINETEEN NINETY ONE ACCORDING TO FORBES MAGAZINE'S ANNUAL SURVEY THAT GIVES MEXICO MORE BILLIONAIRES THAN ANY COUNTRY OTHER THAN THE U. S. JAPAN AND GERMANY THE GOODIES GOING TO THE RICH HAVEN'T ENDED EITHER RECENT LICENSES TO OPERATE IN THE LUCRATIVE BANKING MARKET HAVE BEEN GRANTED TO SOME WEALTHY POLITICALLY CONNECTED PEOPLE INCLUDING CARLOS SLIM WHO OWNS MUCH OF TELEFONOS DE MEXICO TELEVISA A NEAR MONOPOLY IN TELEVISION BROADCASTING THAT STRONGLY SUPPORTS THE RULING PARTY WAS RECENTLY SOLD DOZENS MORE GOVERNMENT TELEVISION STATIONS UNDER A DEAL IN WHICH COMPETITORS COULDN'T BID THE SALINAS ECONOMIC REFORMS WERE DELIBERATELY DESIGNED TO BENEFIT BIG COMPANIES AND THEIR OWNERS WITH THE IDEA THAT MEXICO NEEDED HUGE STRONG COMPANIES IF IT WAS TO COMPETE WITH EFFICIENT GIANTS FROM THE U. S. AND ELSEWHERE IN THE WORLD OF FREER TRADE THAT PRESIDENT SALINAS ENVISIONED IN THE WAKE OF CHIAPAS THOUGH MR. COLOSIO SAYS THAT IF ELECTED PRESIDENT HE WILL FOCUS MORE ON SMALL BUSINESSES AND LESS ON THE COUNTRY'S GIANTS HE SAYS HE WILL ALSO FOCUS LESS ON THE NATIONAL LEVEL AND MORE ON REGIONAL DEVELOPMENT IN CHIAPAS FOR EXAMPLE SOLIDARITY TOLD HARD HIT COFFEE GROWERS THAT THERE WAS A NICHE MARKET PROVIDING HIGH PRICES FOR ORGANICALLY GROWN COFFEE THEN HELPED THEM HOOK UP WITH EXPORTERS HE SAYS SOLIDARITY WILL ALSO EMPHASIZE A PROGRAM TO HELP SMALL BUSINESSES FIND FINANCING SO THEY CAN CREATE JOBS HE SAYS IN ADDITION HE WILL EMPHASIZE ECONOMIC GROWTH MORE THAN THE SALINAS ADMINISTRATION DID TO TRY TO BENEFIT ALL MEXICANS THE ECONOMY WAS SUCH A WRECK WHEN PRESIDENT SALINAS TOOK OFFICE IN NINETEEN EIGHTY EIGHT THAT HE HAD TO SHOW A BUDGET SURPLUS TO REGAIN CREDIBILITY WITH INTERNATIONAL INVESTORS AND HAD TO GENERALLY SQUEEZE THE ECONOMY TO CUT INFLATION MR. COLOSIO SAYS THAT A BUDGET SURPLUS NO LONGER NEEDS TO BE THE GOAL ABOVE ALL OTHERS MR. COLOSIO HAS OFFERED TO DEBATE THE OTHER PRESIDENTIAL CANDIDATES THE FIRST TIME ANY SENIOR P. R. I. OFFICIAL HAS AGREED TO ANY KIND OF DEBATE HE SAYS HE WILL ALSO ADDRESS HIS CAMPAIGN MUCH MORE TO YOUNG PEOPLE AND TO WOMEN THAN ANY CANDIDATE HAS DONE BEFORE IF HE AND THE PARTY ARE REALLY SERIOUS ABOUT DEMOCRATIC REFORM THEN THERE IS OF COURSE NO LONGER ANY GUARANTEE THAT THE P. R. I. CANDIDATE WILL WIN WHICH IS PART OF THE REASON THAT THIS ELECTION SEASON SEEMS LIKELY TO BE SO WILD THE CONCERNS ABOUT POVERTY RAISED BY CHIAPAS APPEAR TO HAVE UNDERMINED THE APPEAL OF THE TRADITIONAL OPPOSITION PARTY THE PAN THE MOST CONSERVATIVE OF THE MAJOR PARTIES ITS CANDIDATE DIEGO FERNANDEZ DE CEVALLOS RECENTLY WENT TO ONE OF THE PAN'S BIGGEST STRONGHOLDS CIUDAD JUAREZ WHICH HAS A PAN MAYOR IN A STATE WITH A PAN GOVERNOR AND ALMOST NO ONE TURNED OUT TO SEE HIM EVENTS IN CHIAPAS HAVE HOWEVER RESTORED LIFE TO THE FALTERING MR. CARDENAS THE LEFTIST CANDIDATE WHO MANY FEEL WOULD HAVE WON THE NINETEEN EIGHTY EIGHT ELECTION IF NOT FOR SUSPECTED FRAUD BY THE P. R. I. CHIAPAS EVEN CREATES A WILD CARD WITHIN THE P. R. I. BECAUSE PRESIDENT SALINAS GAVE THE POPULIST MR. CAMACHO THE HIGHLY VISIBLE JOB OF TRYING TO MEDIATE A SOLUTION MEXICO HAS BEEN ABUZZ ABOUT THE POSSIBILITY THAT MR. CAMACHO WILL PULL OFF A MIRACLE IN CHIAPAS THEN EITHER SUPPLANT MR. COLOSIO AS THE P. R. I.'S CANDIDATE OR BREAK OFF AND START HIS OWN PARTY MR. CAMACHO DECLINES TO COMMENT ALTHOUGH MR. COLOSIO STILL SEEMS SECURE MEXICANS ARE ASKING THEMSELVES IF THINGS ARE THIS UNSETTLED AT THE START OF THE ELECTION YEAR WHAT WILL THINGS BE LIKE BY THE TIME ELECTIONS ROLL AROUND IN AUGUST DOFASCO INCORPORATED SAID IT PLANS TO MAKE A SECONDARY PUBLIC OFFERING IN CANADA OF ALL THE SHARES OF WHOLLY OWNED PRUDENTIAL STEEL LIMITED DOFASCO IS A HAMILTON STEELMAKER THAT HAS BEEN RESTRUCTURING ITS OPERATIONS TO CONCENTRATE ON FLAT ROLLED STEELS PRUDENTIAL SPECIALIZES IN TUBULAR PRODUCTS FOR THE OIL AND GAS INDUSTRY PRUDENTIAL IS BASED IN CALGARY ALBERTA AND EMPLOYS ABOUT FOUR HUNDRED PEOPLE A DOFASCO SPOKESMAN SAID PRUDENTIAL IS PROFITABLE BUT HE DECLINED TO PROVIDE FURTHER DETAILS BEFORE A FINAL PROSPECTUS IS ISSUED ITALY'S FOREIGN TRADE SURPLUS WITH NON EUROPEAN UNION COUNTRIES WIDENED TO FOUR POINT FOUR OH TWO TRILLION LIRE TWO POINT SIX OH BILLION DOLLARS IN DECEMBER FROM TWO POINT ONE FIVE OH TRILLION LIRE A YEAR EARLIER ACCORDING TO THE STATE STATISTICAL OFFICE ISTAT ISTAT SAID THAT FOR NINETEEN NINETY THREE AS A WHOLE THE TRADE ACCOUNT WITH NON E. U. COUNTRIES SWUNG TO A SURPLUS OF TWENTY POINT THREE FIVE ONE TRILLION LIRE FROM A DEFICIT OF TWO POINT SEVEN TWO FIVE TRILLION LIRE THE YEAR EARLIER ISTAT NOTED THE RESULTS COULD BE ATTRIBUTED TO STRONG EXPORT GAINS FOR ALL SECTORS HIS TEMPLE UNIVERSITY BASKETBALL TEAM HAD JUST DEFEATED SAINT BONAVENTURE HERE ON SATURDAY SEVENTY THREE TO FIFTY TWO AND JOHN CHANEY WAS TALKING ABOUT SPORTS AND LIFE QUOTE WHEN I TAUGHT GYM CLASSES IN HIGH SCHOOL AND JUNIOR HIGH THE MOTTO WAS LEAVE 'EM LAUGHIN' AND PUFFIN THAT WAY THEY'D BE EAGER TO GO BACK TO WORK THE NEXT TIME HE SAID DO YOU TRY TO LEAVE YOUR TEMPLE TEAMS THE SAME WAY SOMEONE ASKED NAH SAID CHANEY I JUST LEAVE 'EM PUFFIN' THEY'RE BEYOND THE LAFFIN' PART WHEN YOU ASK SIXTY ONE YEAR OLD JOHN CHANEY A QUESTION YOU GET AN ANSWER IN A FORM IN WHICH THE PLAYERS COME AND GO AND THE COACHES ARE THE STARS FRONT AND CENTER ARE HIS NATURAL POSITIONS WHEN YOU ATTEND AN N. C. A. A. BASKETBALL TOURNAMENT YOU EXPECT HIS TEAMS TO BE THERE THEY'VE MADE THE BIG SHOW NINE TIMES IN HIS PREVIOUS ELEVEN SEASONS AT TEMPLE THREE TIMES TO THE ROUND OF EIGHT IN THE LAST SIX YEARS AND OFF ITS SIXTEEN TO TWO WON LOST START THIS YEAR IS SURE TO MAKE IT TEN OF TWELVE AND WHEN A DISPUTE ROILS THE COLLEGE BASKETBALL WATERS AS THE STRUGGLE OVER N. C. A. A. DECISION MAKING HAS THREATENED A BLACK COACH'S BOYCOTT IN THIS ONE YOU CAN EXPECT TO HEAR FROM HIM AGAIN ON THIS LATE AFTERNOON STANDING IN FRONT OF THE RED AND WHITE T. BANNER THAT'S A BACKDROP FOR HIS POST GAME PRESS CONFERENCES AT SNUG THREE THOUSAND NINE HUNDRED SEATS ON CAMPUS MCGONIGLE HALL HE'S HOLDING FORTH ON THE REASONS BEHIND THE STANCE FOR WHICH HE'S BECOME A POINT MAN EVERYONE PRESENT KNOWS WHERE HE'S COMING FROM HE'S BLACK RAISED IN CIRCUMSTANCES THAT MAKE TONYA HARDING'S LOOKED PRIVILEGED AND FOR HIM SPORTS WERE THE KEY TO FIRST EDUCATION AND THEN ADULT SUCCESS AMONG HIS PROFESSIONAL HONORS IS A NINETEEN SEVENTY NINE STATE OF PENNSYLVANIA DISTINGUISHED FACULTY AWARD EARNED WHILE HE WAS AT CHEYNEY STATE UNIVERSITY IT'S NOT ABOUT CUTTING THAT FOURTEENTH MEN'S BASKETBALL SCHOLARSHIP THAT WAS NOT THE REASON THAT WAS JUST THE LAST STRAW SAYS THE MAN WHOSE SQUAD NUMBERS TEN SCHOLARSHIP ATHLETES ONE OF WHOM IS FROM HOLLAND QUOTE IT'S ABOUT ACCESS OF COACHES TO KIDS THEY MIGHT HELP AND MINORITY PARTICIPATION IN EVERY PHASE OF COLLEGE ATHLETICS IT'S ABOUT GIVING THE PEOPLE WHO MAKE THE SYSTEM WORK A SAY IN HOW IT WORKS KIDS TODAY NEED DIRECTION AND INSPIRATION BUT N. C. A. A. RULES TIE UP THE COACHES THE VERY PEOPLE WHO COULD HELP GIVE IT TO THEM HE GOES ON I'D LIKE TO BE OUT IN THE HIGH SCHOOLS MORE TELLING THE KIDS HOW THINGS ARE BUT THE RECRUITING RULES WON'T LET ME OR TAKE WHAT THEY'RE DOING IN THE NAME OF GENDER EQUITY THEY'RE CUTTING BACK ON SCHOLARSHIPS IN MEN'S FOOTBALL BASKETBALL AND TRACK AND ADDING THEM IN WOMEN'S SPORTS LIKE BADMINTON CREW AND SYNCHRONIZED SWIMMING EVERYBODY KNOWS THAT SPORTS ARE CULTURAL AND THAT THE EFFECT OF THAT IS TO TAKE OPPORTUNITY AWAY FROM BLACK MEN AND GIVE IT TO WHITE WOMEN WHERE'S THE JUSTICE IN THAT IF WE HAD PROPER MINORITY REPRESENTATION IN THE N. C. A. A. YOU WOULDN'T SEE THAT SORT OF THING QUOTE THEY TALK ABOUT RAISING ACADEMIC STANDARDS FOR ATHLETES BUT WHY SHOULD THE ELITE SCHOOLS MAKE THE RULES FOR PLACES LIKE TEMPLE AND WHY SHOULD BLACK PEOPLE HAVE TO APOLOGIZE FOR WANTING TO DEVELOP THE TALENTS WE HAVE IF YOU HAVE SUCCESS IN ONE AREA LIKE BASKETBALL YOU HAVE SOMETHING YOU CAN BUILD ON AND MAYBE TRANSFER TO OTHER AREAS TRANSFER THAT'S THE KEY YOU MAY START A TRIP HOPING TO GET TO NEW YORK BUT EVEN IF YOU ONLY MAKE IT TO NEWARK IT DOESN'T MEAN THE TRIP IS WASTED IT'S THE WORK YOU DO ALONG THE WAY THAT COUNTS WHEN IT COMES TO HIS CURRENT SQUAD OF COURSE CHANEY IS HOPING IT'LL MAKE IT ALL THE WAY TO CHARLOTTE N. C. FOR THIS YEAR'S FINAL FOUR AS USUAL HARD WORK WOULD BE ITS TICKET CHANEY'S TEAMS BEGIN THEIR TWO HOUR DAILY PRACTICES AT FIVE THIRTY A. M. THAT WAY THEY DON'T CONFLICT WITH CLASSES AND DISCOURAGE PLAYER NIGHT LIFE THE OWLS PLAY DEFENSE EARLY LATE AND IN BETWEEN GOOD D. BEING THE PART OF BASKETBALL MOST ATTAINABLE THROUGH PURE EFFORT THEIR STYLE IS A ZONE PRESS THAT WHEN EXECUTED RIGHT CHOKES OFF FOES' CLOSE IN SHOTS AND HARASSES OUTSIDE ATTEMPTS AS WELL NOTHING THE OWLS DID ON SATURDAY APPRECIABLY LESSENED ANY OF THOSE DISTINCTIONS SHOOTING SIXTY TWO POINT FIVE PERCENT IN THE FIRST HALF THEY DASHED TO A FORTY ONE TO TWENTY FIVE LEAD OVER THE OUTMANNED BONNIES WHICH THEY WIDENED TO FORTY NINE TO TWENTY SEVEN IN THE OPENING MINUTES OF THE SECOND HALF THE VISITORS RALLIED THEREAFTER TO CUT THEIR DEFICIT TO TWELVE POINTS BUT THE OWLS AWOKE TO WIN GOING AWAY FORWARD EDDIE JONES A TRULY TALENTED OFFENSIVE PLAYER SCORED TWENTY ONE POINTS ON SEVEN OF ELEVEN SHOOTING FOR THE WINNERS GUARD AARON MCKIE HAD TWENTY TWO RICK BRUNSON THE POINT GUARD HUSBANDED THE BALL WELL CHANEY TYPICALLY SEES HIS COACHING GLASS AS HALF EMPTY AND HIS POST GAME COMMENTS REFLECTED THAT HE FRETTED ABOUT HIS TEAM'S PERSISTENTLY MEDIOCRE FREE THROW SHOOTING SIXTY FOUR PERCENT ALLOWED THAT HE WISHED HE COULD USE MORE THAN THE SIX PLAYERS WHO'VE SEEN SIGNIFICANT SERVICE THIS CAMPAIGN BUT SAID THE OTHER TEAMS WON'T LET HIM AND BEMOANED THE BALL HANDLING SHORTCOMINGS OF WILLIAM CUNNINGHAM AND DERRICK BATTIE HIS PRIMARY BIG MEN THE MONEY'S IN THE POT NOW AND WE'D LIKE TO FINISH STRONG BUT THREE DEUCES WON'T WIN IT EVEN THREE TREYS CONCLUDED CHANEY BUT HE'LL DO WHAT HE CAN TO GET HIS BOYS THE BEST DEAL JOHN CAHILL CHAIRMAN OF BRITISH AEROSPACE P. L. C. IS TO RESIGN IN THE WAKE OF A BOARDROOM TUSSLE ACCORDING TO VARIOUS NEWSPAPER REPORTS IN THE UNITED KINGDOM YESTERDAY ACCORDING TO THE REPORTS MR. CAHILL'S EXPECTED DEPARTURE COMES AS A RESULT OF CLASHES WITH SOME DIRECTORS NOTABLY CHIEF EXECUTIVE RICHARD EVANS AND FINANCE DIRECTOR RICHARD LAPTHORNE THE FAILURE OF BRITISH AEROSPACE TO SUCCESSFULLY COMPLETE A LONGSTANDING NEGOTIATION WITH THE TAIWANESE GOVERNMENT ON A JOINT VENTURE TO BUILD JETS HAD LED TO SPECULATION A FEW MONTHS AGO THAT MR. CAHILL WOULD RESIGN HE WAS CLOSELY INVOLVED WITH THAT PARTICULAR PROJECT NEWS REPORTS SAY MR. CAHILL'S RESIGNATION COULD COME AS EARLY AS TODAY JUST A WEEK AFTER BRITISH AEROSPACE GRABBED HEADLINES BY ANNOUNCING THE EIGHT HUNDRED MILLION POUNDS ONE POINT TWO BILLION DOLLARS SALE OF ITS EIGHTY PERCENT STAKE IN ROVER HOLDINGS P. L. C. TO GERMANY'S BAYERISCHE MOTOREN WERKE A. G. OFFICIALS AT THE COMPANY COULDN'T BE REACHED YESTERDAY MEANWHILE THE PRESIDENT OF HONDA MOTOR COMPANY WHICH OWNS THE REMAINING TWENTY PERCENT OF ROVER INDICATED THAT HIS COMPANY MAY EVENTUALLY SEVER ITS TIES TO ROVER IF B. M. W. GOES AHEAD WITH ITS PLANNED PURCHASE THE JAPANESE COMPANY'S HELP HAS BEEN KEY TO ROVER'S TRANSFORMATION IN THE PAST FEW YEARS INTO ONE OF THE FASTEST GROWING CAR MAKERS IN EUROPE IN A INTERVIEW WITH THE BRITISH BROADCASTING CORPORATION NOBUHIKO KAWAMOTO SAID HE PREFERRED TO SEE ROVER REMAIN A BRITISH CONTROLLED COMPANY BUT HE SAID IF HONDA'S CONNECTION TO ROVER QUOTE BECOMES ONLY A JOINT VENTURE WITH B. M. W. AND ROVER CEASES TO BE A BRITISH COMPANY OUR COOPERATIVE RELATIONSHIP WITH ROVER WILL NOT LAST VERY LONG QUOTE A BRITISH AEROSPACE SPOKESMAN LAST NIGHT DECLINED TO COMMENT ON MR. KAWAMOTO'S INTERVIEW CALLING IT A MATTER FOR B. M. W. AND FOR HONDA SEPARATELY BRITISH AEROSPACE SAID IT WILL TAKE A TWO HUNDRED FIFTY MILLION POUND PROVISION TO CLEAN UP THE BALANCE SHEET AT ITS TURBOPROP DIVISION THE PROVISION TO BE TAKEN ON THE NINETEEN NINETY THREE BOOKS WILL BRING THE ACCOUNTING TREATMENT OF PRE NINETEEN NINETY THREE SALES IN LINE WITH ITS CURRENT POLICY OF TAKING A PROVISION AGAINST ALL REGIONAL AIRCRAFT SALES THE COMPANY SAID ANALYSTS SAID THE PROVISION MAY BE A PRELUDE TO THE SALE OR MERGER OF THE TURBOPROP UNIT JAN COLLMER FOUNDER AND PRESIDENT OF COLLMER SEMICONDUCTOR INCORPORATED WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO SEVEN TEMPLE INLAND INCORPORATED DIBOLL TEXAS PAUL M. ANDERSON AND CHARLOTTE TEMPLE WERE ELECTED TO THE BOARD OF THIS WOOD PRODUCTS AND FINANCIAL SERVICES CONCERN ONE OF THE DIRECTORS TOOK THE SEAT OF ARTHUR TEMPLE SEVENTY THREE YEARS OLD WHO HAD RETAINED A POSITION ON THE BOARD AFTER STEPPING DOWN AS CHAIRMAN THE OTHER DIRECTOR WAS NAMED TO A NEW SEAT EXPANDING THE BOARD TO TEN MEMBERS MR. ANDERSON FORTY NINE IS PRESIDENT OF PANHANDLE EASTERN CORPORATION MS. TEMPLE FIFTY THREE IS A PRIVATE INVESTOR MARTIN B. ROSCH FIFTY FOUR YEARS OLD WAS NAMED VICE PRESIDENT INFORMATION SERVICES OF THIS PERSONNEL AND HEALTH CARE SERVICES PROVIDER MR. ROSCH SUCCEEDS JOSEPH LEANZA WHO LEFT THE COMPANY IN DECEMBER MR. ROSCH MOST RECENTLY WAS A VICE PRESIDENT OF OGDEN SERVICES CORPORATION IN NEW YORK ROBERT J. GALLAGHER FIFTY YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF CHIEF OPERATING OFFICER OF THIS MAKER OF MEDICAL DIAGNOSTIC SYSTEMS MR. GALLAGHER RETAINS HIS TITLE AS EXECUTIVE VICE PRESIDENT STEPHEN T. JOHNSON FIFTY SUCCEEDS MR. GALLAGHER AS CHIEF FINANCIAL OFFICER AND REMAINS CORPORATE TREASURER L. RONALD FORMAN WAS ELECTED A DIRECTOR OF THIS SPECIALTY RETAILER EXPANDING THE BOARD TO EIGHT MEMBERS MR. FORMAN FORTY SIX YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OF AUDUBON INSTITUTE INCORPORATED IN NEW ORLEANS GEORGE B. AMOSS FIFTY TWO YEARS OLD WAS NAMED VICE PRESIDENT AND CONTROLLER OF THIS DIGITAL TELECOMMUNICATIONS SWITCHING SYSTEMS AND SERVICES SUPPLIER HE SUCCEEDS FRANK A. DUNN FORTY WHO WAS NAMED VICE PRESIDENT FINANCE AT THE NORTEL NORTH AMERICA UNIT THE POSITION IS NEW MR. AMOSS HAS BEEN VICE PRESIDENT BUSINESS ANALYSIS AND PLANNING ALSO STEPHEN A. HOLINSKI FORTY SEVEN WAS NAMED VICE PRESIDENT AND TREASURER OF THE PARENT SUCCEEDING JAMES E. WILKINSON FORTY SIX WHO RESIGNED TO PURSUE OTHER INTERESTS THE COMPANY SAID MR. HOLINSKI IS VICE PRESIDENT FINANCE PRODUCTS ALL THE POSITIONS ARE EFFECTIVE FEBRUARY WILLIAM L. HYDE FORTY SIX YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS RESTAURANT CHAIN A NEW POSITION MR. HYDE WAS FORMERLY PRESIDENT AND CHIEF OPERATING OFFICER OF FURR'S SLASH BISHOP'S INCORPORATED A CAFETERIA OPERATOR IN LUBBOCK TEXAS PETER B. MCKEE WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS WHOLESALE DRUG DISTRIBUTOR MR. MCKEE FIFTY FIVE YEARS OLD WAS A PARTNER AT INTERSOLVE GROUP INCORPORATED A DALLAS MANAGEMENT CONSULTING FIRM AT FOXMEYER HE SUCCEEDS DENNIS LETHAM WHO RESIGNED IN JULY FOXMEYER ALSO NAMED WILLIAM L. ESTES SENIOR VICE PRESIDENT OPERATIONS MR. ESTES FORTY SIX WAS CHIEF OPERATING OFFICER FOR THE U. S. UNIT OF BODY SHOP INTERNATIONAL P. L. C. FOXMEYER DIDN'T DISCLOSE WHOM MR. ESTES SUCCEEDED PRUDENTIAL INSURANCE COMPANY JAMES G. CULLEN FIFTY TWO YEARS OLD WAS NAMED A DIRECTOR OF THIS INSURER BY SUPREME COURT OF NEW JERSEY CHIEF JUSTICE ROBERT N. WILENTZ UNDER NEW JERSEY LAW THE CHIEF JUSTICE IS AUTHORIZED TO APPOINT SIX PUBLIC DIRECTORS TO THE TWENTY FOUR MEMBER BOARD FOR A SIX YEAR TERM MR. CULLEN PRESIDENT OF BELL ATLANTIC CORPORATION SUCCEEDS THOMAS S. JOHNSON WHO HAD TO RESIGN WHEN HE BECAME CHIEF EXECUTIVE OFFICER OF GREEN POINT SAVINGS BANK THEODORE CRUMLEY WAS NAMED CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT OF THIS FOREST PRODUCTS COMPANY MR. CRUMLEY FORTY EIGHT YEARS OLD SUCCEEDS REX L. DORMAN WHO IS RETIRING JUNE FIRST TOM E. CARLILE DIRECTOR OF FINANCE AND PLANNING FOR THE COMPANY'S WHITE PAPER DIVISION WAS NAMED BOISE CASCADE'S VICE PRESIDENT AND CONTROLLER POSITIONS FORMERLY HELD BY MR. CRUMLEY J. DANIEL COLE FORTY SEVEN YEAR OLD EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF DISPOSABLE MEDICAL DEVICES WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO SEVEN BANCO SANTANDER S. A. SAID GROUP PROFIT INCREASED TWELVE PERCENT IN NINETEEN NINETY THREE AND SAID IT IS STUDYING A POSSIBLE BID FOR CONTROL OF ITS AILING RIVAL BANCO ESPANOL DE CREDITO S. A. HOWEVER SANTANDER CHAIRMAN EMILIO BOTIN SAID THE BANK WOULD GO AHEAD WITH A BID ONLY IF IT IS SURE SUCH AN ACQUISITION WOULD BE PROFITABLE AND IN THE INTEREST OF ITS SHAREHOLDERS QUOTE THIS IS AN OPPORTUNITY NOT AN OBLIGATION QUOTE HE SAID IN AN INTERVIEW EVERYTHING WILL DEPEND ON THE PRICE MR. BOTIN'S REMARKS REITERATED PUBLICLY OVER THE WEEKEND AT SANTANDER'S ANNUAL SHAREHOLDERS' MEETING MARKED THE OPENING SALVO IN A BATTLE PITCHING SANTANDER AGAINST OTHER SPANISH BANKS UNDER A SALVAGE PLAN BACKED BY SPAIN'S CENTRAL BANK AND DUE TO BE SUBMITTED TO NEXT MONTH TO BANESTO SHAREHOLDERS FOR APPROVAL SPANISH BANKS ARE TO BE INVITED LATER THIS YEAR TO MAKE BIDS FOR CONTROL OF THE TROUBLED BANK THE BANK OF SPAIN DISMISSED BANESTO'S FORMER CHAIRMAN MARIO CONDE AND HIS BOARD ON DECEMBER TWENTY EIGHTH NINETEEN NINETY THREE FOLLOWING THE DISCOVERY OF A FINANCIAL SHORTFALL NOW ESTIMATED AT SIX HUNDRED FIVE BILLION PESETAS FOUR POINT TWO EIGHT BILLION DOLLARS SANTANDER IS WIDELY REGARDED AS FRONTRUNNER TO TAKE OVER BANESTO DUE TO ITS FINANCIAL AND COMMERCIAL SUCCESS OVER THE PAST FEW YEARS BUT THE ACQUISITION OF WHAT WAS ONCE SPAIN'S LARGEST AND MOST PRESTIGIOUS BANK WOULD MAKE SANTANDER AN EVEN MORE POWERFUL COMPETITOR FOR OTHER SPANISH BANKS SEVERAL INCLUDING BANCO BILBAO VIZCAYA S. A. ARE STUDYING RIVAL BIDS FRESH EVIDENCE OF SANTANDER'S FINANCIAL SUCCESS CAME OVER THE WEEKEND WITH NEWS OF ITS NINETEEN NINETY THREE RESULTS IN A YEAR MARRED FOR SPANISH BANKS GENERALLY BY RISING BAD DEBTS AND NARROWING MARGINS SANTANDER INCREASED NET INCOME AFTER MINORITY INTERESTS TO SIXTY SIX POINT FOUR BILLION PESETAS FROM FIFTY NINE POINT TWO BILLION PESETAS FOLLOWING A ONE PERCENT DECLINE IN SPAIN'S GROSS NATIONAL PRODUCT IN NINETEEN NINETY THREE SANTANDER OFFICIALS SAID THEY DON'T EXPECT A SIGNIFICANT RECOVERY THIS YEAR FOR THE SPANISH ECONOMY HOWEVER MR. BOTIN EXPRESSED CONFIDENCE THAT SANTANDER WOULD HAVE FURTHER EARNINGS GROWTH THIS YEAR DUE TO ITS INTERNATIONAL OPERATIONS AND ITS GROWING INVESTMENT BANKING BUSINESS IN NINETEEN NINETY THREE FORTY TWO PERCENT OF THE BANK'S EARNINGS CAME FROM INTERESTS OUTSIDE SPAIN INCLUDING ITS THRIVING COMMERCIAL AND INVESTMENT BANKING OPERATION IN CHILE AND ITS STAKES IN ROYAL BANK OF SCOTLAND AND U. S. BASED FIRST FIDELITY BANCORP BY NINETEEN NINETY FIVE MR. BOTIN SAID THE BANK AIMS TO INCREASE THE PROPORTION TO FIFTY PERCENT NET INTEREST INCOME IN NINETEEN NINETY THREE ROSE NINETEEN PERCENT TO TWO HUNDRED FORTY THREE BILLION PESETAS WHILE INCOME FROM FEES AND COMMISSIONS ROSE NINE POINT THREE PERCENT TO SEVENTY FIVE POINT FIVE BILLION PESETAS PROVISIONS ROSE ONE HUNDRED SIXTY TWO PERCENT TO EIGHTY SIX BILLION PESETAS BUT THAT WAS MORE THAN OFFSET BY A THREE HUNDRED TWENTY THREE PERCENT INCREASE IN INCOME FROM SECURITIES AND FOREIGN EXCHANGE TRADING ON THE BANK'S OWN ACCOUNT TO NINETY BILLION PESETAS THE BANK SAID IT WOULD PAY A DIVIDEND FOR THE YEAR OF TWO HUNDRED NINETY TWO PESETAS TWO DOLLARS AND SEVEN CENTS A SHARE UP TWELVE PERCENT FROM NINETEEN NINETY TWO TOTAL ASSETS ROSE FORTY EIGHT PERCENT IN NINETEEN NINETY THREE TO TEN POINT FOUR TRILLION PESETAS SEVENTY THREE POINT FIVE FIVE BILLION DOLLARS PARTLY REFLECTING THE EFFECT OF THREE DEVALUATIONS OF THE PESETA THE BANK'S CAPITAL ADEQUACY RATIOS FELL TO TWELVE POINT FIVE PERCENT FROM TWELVE POINT SIX FIVE PERCENT BUT WERE STILL WELL ABOVE THE INTERNATIONALLY ACCEPTED EIGHT PERCENT MINIMUM MR. BOTIN SAID SANTANDER IS LIKELY TO BEGIN A FUND RAISING EXERCISE SHORTLY TO BOLSTER ITS CAPITAL ADEQUACY RATIOS IF CONFIRMED SUCH A MOVE WOULD LIKELY MAKE SANTANDER THE FIRST SPANISH BANK TO SEEK FUNDING FROM INTERNATIONAL FINANCIAL MARKETS SINCE THE CRISIS AT BANESTO WHICH HAS FOCUSED AN UNFLATTERING SPOTLIGHT ON SOME ASPECTS OF SPAIN'S BUSINESS ENVIRONMENT MEANWHILE MR. BOTIN MADE CLEAR THAT SANTANDER ISN'T INTERESTED IN BANESTO AT ANY PRICE AROUND ONE THOUSAND OF BANESTO'S TWO THOUSAND THREE HUNDRED BRANCHES OVERLAP WITH SANTANDER'S ONE THOUSAND THREE HUNDRED FIFTY BRANCH NETWORK AND BANESTO IS UNLIKELY TO BE IN A POSITION TO PAY A DIVIDEND BEFORE NINETEEN NINETY SIX AS A RESULT THOUGH POTENTIALLY ATTRACTIVE BANESTO ISN'T INDISPENSIBLE FOR SANTANDER'S FUTURE SUCCESS MR. BOTIN SAID THE EUROPEAN VENTURE CAPITAL INDUSTRY IS TRYING TO MAKE LIFE EASIER FOR INVESTORS FUNDS IN DIFFERENT EUROPEAN COUNTRIES CURRENTLY FOLLOW WIDELY VARYING ACCOUNTING RULES MAKING IT TOUGH TO COMPARE FUND MANAGERS' PERFORMANCES SUCH DIFFERENCES ARE BELIEVED TO BE ONE OF THE MAIN OBSTACLES STYMIEING THE DEVELOPMENT OF VENTURE CAPITAL IN EUROPE THE BRUSSELS BASED EUROPEAN VENTURE CAPITAL ASSOCIATION RECENTLY PRODUCED LONG AWAITED GUIDELINES FOR MEASURING THE PERFORMANCE OF FUNDS THE GUIDELINES WOULD OBLIGE MANAGERS TO MEASURE THEIR FUNDS' PERFORMANCE IN A SIMILAR FASHION AND REPORT RESULTS TO INVESTORS ON A REGULAR BASIS THAT SHOULD ALLOW AN INVESTOR A PENSION FUND FOR EXAMPLE TO TRACK AND COMPARE ITS VARIOUS INVESTMENTS QUOTE THERE'S A GREAT NEED FOR PERFORMANCE DATA IN EUROPE QUOTE SAYS SUSAN LLOYD DIRECTOR OF INVESTOR RELATIONS FOR SCHRODER VENTURES A GLOBAL VENTURE CAPITAL NETWORK AFFILIATED WITH SCHRODERS P. L. C. U. S. INVESTORS IN PARTICULAR ARE USED TO HAVING INDUSTRY STATISTICS THEY WANT SOME HARD DATA ON HOW FUNDS HAVE PERFORMED COMMON PRINCIPLES SHOULD HELP IN THE EFFORT TO DETERMINE EUROPEAN FUND MANAGERS' SKILL AT PICKING INVESTMENT OPPORTUNITIES IN ADDITION ONCE THE INVESTMENTS ARE REALIZED AND THE CASH PAID BACK TO THE INVESTORS THEY WOULD BE ABLE TO COMPARE THE FEES AND COSTS CHARGED BY FUND MANAGERS THE ASSOCIATION HOPES TO HAVE THE PROPOSED GUIDELINES WHICH ARE THE RESULT OF MONTHS OF PAINSTAKING WORK IN EFFECT BY NEXT YEAR THAT MAY PROVE A BIT OPTIMISTIC SAY INDUSTRY OFFICIALS WHO WORRY THAT IRONING OUT EUROPE'S MAZE OF DIFFERENT ACCOUNTING AND TAX RULES IS LIKELY TO BE AN UPHILL STRUGGLE THE COMMON PERFORMANCE PRINCIPLES ARE ONLY A FIRST STEP HOWEVER BY PROPOSING THE GUIDELINES THE ASSOCIATION HAS A FAR MORE AMBITIOUS GOAL IN MIND THE PUBLICATION OF EUROPE WIDE STATISTICS ON VENTURE CAPITAL FUNDS' PERFORMANCES SUCH INDUSTRY WIDE DATA ARE READILY AVAILABLE IN THE U. S. IN EUROPE SUCH FIGURES DON'T YET EXIST EVEN AT THE NATIONAL LEVEL BUT THE VENTURE CAPITAL INDUSTRY IN THE U. K. FRANCE AND THE NETHERLANDS HAVE STARTED STUDIES AND A FEW PILOT PROJECTS TO MEET THAT OBJECTIVE IT'S A HUGE TASK SAYS MS. LLOYD OF SCHRODER VENTURES WOLOHAN LUMBER COMPANY A LUMBER AND BUILDING MATERIALS RETAIL CHAIN SAID ITS SALES FOR JANUARY INCREASED TO TWENTY TWO POINT THREE MILLION DOLLARS UP SIX POINT FIVE PERCENT FROM TWENTY POINT NINE MILLION DOLLARS A YEAR EARLIER SALES FOR STORES OPEN AT LEAST A YEAR ROSE THREE POINT THREE PERCENT DEPUTY ATTORNEY GENERAL PHILIP HEYMANN OBJECTED TO HAVING WHITE HOUSE LAWYERS SIT IN ON STAFF INTERVIEWS BY JUSTICE DEPARTMENT INVESTIGATORS FOLLOWING VINCENT FOSTER'S SUICIDE IN THE DAYS AFTER MR. FOSTER'S DEATH MR. HEYMANN COMPLAINED TO WHITE HOUSE COUNSEL BERNARD NUSSBAUM ABOUT THE LAWYERS' INVOLVEMENT IN THE INTERVIEWS WITH WHITE HOUSE STAFFERS MR. NUSSBAUM WHO HAS STEADFASTLY MAINTAINED THAT HE DID THINGS PROPERLY AND ETHICALLY DECLINED TO COMMENT THE FEDERAL BUREAU OF INVESTIGATION WAS PROBING ALLEGATIONS FOUND IN A NOTE WRITTEN BY MR. FOSTER THAT THE F. B. I. HAD LIED TO THE ATTORNEY GENERAL IN ITS REPORT ABOUT ALLEGED IRREGULARITIES IN THE WHITE HOUSE TRAVEL OFFICE THE NOTE WAS FOUND AFTER THE JULY TWENTIETH DEATH OF MR. FOSTER WHO WAS MR. NUSSBAUM'S DEPUTY AND THE PERSONAL LAWYER OF PRESIDENT CLINTON AND HILLARY RODHAM CLINTON THE OBJECTIONS OF MR. HEYMANN INDICATE HOW DISSATISFIED SOME HIGH LEVEL JUSTICE DEPARTMENT OFFICIALS WERE WITH THE ACTIONS OF TOP WHITE HOUSE AIDES REGARDING THE FOSTER INVESTIGATION MR. HEYMANN RECENTLY ANNOUNCED HE IS LEAVING HIS JOB BUT WHITE HOUSE AND JUSTICE DEPARTMENT OFFICIALS SAID HIS DEPARTURE WASN'T DIRECTLY LINKED TO THIS INVESTIGATION INTERVIEWS WITH CLINTON ADMINISTRATION AND LAW ENFORCEMENT OFFICIALS FAMILIAR WITH A U. S. PARK POLICE REPORT ON MR. FOSTER'S DEATH SAY IT CHARGES THAT THE INVOLVEMENT OF WHITE HOUSE AIDES DURING THE SUICIDE PROBE MAY HAVE INTERFERED WITH THE INVESTIGATION THE PARK POLICE WAS THE LEAD AGENCY ON THE SUICIDE BECAUSE IT OCCURRED IN A FEDERAL PARK IN SUBURBAN VIRGINIA SINCE MR. FOSTER'S DEATH IT HAS BEEN REVEALED THAT DOCUMENTS CONCERNING THE CLINTONS' INVESTMENT IN THE WHITEWATER DEVELOPMENT CORPORATION IN ARKANSAS WERE AMONG PAPERS TAKEN FROM HIS OFFICE AND TURNED OVER TO A PRIVATE LAWYER FOR THE CLINTONS AN INDEPENDENT COUNSEL IS PROBING WHITEWATER RELATED MATTERS AND THOSE PAPERS HAVE SINCE BEEN TURNED OVER TO THE JUSTICE DEPARTMENT DAVID MARGOLIS ONE OF MR. HEYMANN'S TOP ASSISTANTS WAS PRESENT AS WHITE HOUSE LAWYERS SAT IN ON THE INTERVIEWS ACCORDING TO LAW ENFORCEMENT OFFICIALS DURING THE INTERVIEWING HE COMPLAINED ABOUT THE LAWYERS' PRESENCE TO MR. HEYMANN WHO THEN ACCORDING TO ONE OFFICIAL QUOTE RAISED HELL QUOTE WITH MR. NUSSBAUM THOUGH MR. NUSSBAUM BELIEVED WHITE HOUSE LAWYERS COULD APPROPRIATELY SIT IN HE DISCUSSED THE QUESTION WITH MR. HEYMANN BEFORE ULTIMATELY AGREEING TO REMOVE WHITE HOUSE PEOPLE FROM SUBSEQUENT INTERVIEWS THE WHITE HOUSE STAFFERS WHO WERE INTERVIEWED WERE ALLOWED PRIVATE LAWYERS IF THEY CHOSE TO HAVE THEM ACCORDING TO WHITE HOUSE AIDES SPEAKING GENERALLY SAID LLOYD CUTLER WHO WAS WHITE HOUSE COUNSEL TO PRESIDENT CARTER IT IS QUITE NORMAL FOR THE LAWYERS FOR AN AGENCY TO SIT IN ON INTERVIEWS OF AGENCY PERSONNEL BY LAW ENFORCEMENT OFFICIALS UNLESS IT IS A CRIMINAL INVESTIGATION A POLICE OFFICIAL SAID HIS AGENCY ALSO WAS ANNOYED WITH THE INVOLVEMENT OF WHITE HOUSE AIDES DURING ITS PROBE OF THE SUICIDE WE HAVE SAID PUBLICLY THAT WE WERE UNHAPPY WITH THE TYPE OF COOPERATION WE GOT FROM MR. NUSSBAUM AND OTHERS IN HIS OFFICE SAID MAJOR ROBERT HINES THE U. S. PARK POLICE SPOKESMAN OUR INVESTIGATORS WENT OVER TO THE WHITE HOUSE THE DAY AFTER THE SUICIDE BUT DIDN'T GET INTO VINCE'S OFFICE SAID MR. HINES THEY SAT AND WAITED WE WERE INFORMED THAT EVERYTHING WOULD BE COORDINATED BY THE JUSTICE DEPARTMENT WE WERE WAITING FOR THE JUSTICE DEPARTMENT REPRESENTATIVE MR. MARGOLIS HE WAS IN CHARGE HE DIDN'T SHOW UP UNTIL THE SECOND DAY JULY TWENTY SECOND THE PARK POLICE INVESTIGATORS HE SAID DIDN'T LIKE BEING PUT ON HOLD FOR A FULL DAY AND THEN BEING DENIED A CHANCE TO REVIEW ANY OF THE PAPERS AND DOCUMENTS IN MR. FOSTER'S OFFICE INSTEAD THEY BASICALLY SAT AND WATCHED MR. NUSSBAUM AND HIS AIDES SCREEN AND SORT THE PAPERS BY CATEGORY MR. NUSSBAUM QUOTE INSISTED ON SORTING WHAT HE CLAIMED WAS EXECUTIVE PRIVILEGE AND WHAT WASN'T QUOTE SAID ONE ADMINISTRATION OFFICIAL WE DIDN'T MIND THEM SCREENING THEM MR. HINES SAID WE WOULD HAVE LIKED TO HAVE SEEN THEM TOO IT WAS NOT NORMAL HOW THAT DRILL IN THAT ROOM WENT AND IT WASN'T HOW WE EXPECTED IT TO GO MR. HINES ADDED HAD THIS BEEN A MURDER I DON'T KNOW WHAT WE WOULD HAVE DONE IF WE RAN INTO THAT KIND OF ROADBLOCK BUT WE WERE PRETTY SURE WE KNEW WHAT WE WERE DEALING WITH A SUICIDE THE WHITE HOUSE SHOWS NO INCLINATION TOWARD DISCIPLINING OR REPRIMANDING MR. NUSSBAUM QUOTE WHAT SHOULD HAVE BEEN DONE WAS DONE QUOTE A TOP WHITE HOUSE AIDE SAID ANY DEALINGS WITH DOCUMENTS AND SUBSEQUENT INVESTIGATIONS WERE DONE PROPERLY THE AIDE ADDED SEPARATELY THE WHITE HOUSE HAS TOLD THE PARK POLICE THAT IT COULD REFUSE TO DISCLOSE AT LEAST PART OF MR. FOSTER'S OFFICE TELEPHONE LOGS IN RESPONSE TO A QUERY FROM THE PARK POLICE THE WHITE HOUSE SAID THE PARK POLICE COULD CLAIM A VARIETY OF PRIVILEGES INCLUDING PRIVACY TO DECLINE TO RELEASE AT LEAST PART OF THE LOGS IN RESPONSE TO A FREEDOM OF INFORMATION ACT REQUEST EXACTLY WHAT WILL BE DISCLOSED HAS SINCE BEEN THROWN INTO QUESTION WITH THE APPOINTMENT OF THE INDEPENDENT COUNSEL THE MASSACHUSETTS TREASURER'S OFFICE BARRED MERRILL LYNCH AND COMPANY FROM A LEAD UNDERWRITER'S ROLE IN FORTHCOMING BOND SALES BY THE STATE CITING QUOTE THE UNRESOLVED CONTROVERSY QUOTE FOLLOWING ALLEGATIONS OF IMPROPRIETY BY THE STATE INSPECTOR GENERAL'S OFFICE MERRILL WAS AMONG FIVE FIRMS SELECTED LAST WEEK AS PART OF A SENIOR MANAGERS' GROUP TO HANDLE BOND ISSUES THE OTHERS WERE C. S. FIRST BOSTON CORPORATION GOLDMAN SACHS AND COMPANY MORGAN STANLEY AND COMPANY AND PAINEWEBBER INCORPORATED GOLDMAN SACHS WAS NAMED LEAD UNDERWRITER AS REPORTED MERRILL'S DEALINGS WITH MASSACHUSETTS THE DISTRICT OF COLUMBIA AND OTHER MUNICIPAL ISSUERS ARE UNDER INVESTIGATION BY FEDERAL AND STATE OFFICIALS WHO ARE EXAMINING MERRILL'S TIES TO MARK S. FERBER THE FORMER HEAD OF LAZARD FRERES AND COMPANY'S BOSTON OFFICE IN ADDITION MASSACHUSETTS INSPECTOR GENERAL ROBERT CERASOLI HAS ALLEGED THAT MR. FERBER AND LAZARD HAD AN UNDISCLOSED FEE SPLITTING CONTRACT WITH MERRILL AT A TIME WHEN HE WAS ADVISING THE STATE WATER RESOURCES AUTHORITY ON WHICH FIRMS TO SELECT AS UNDERWRITERS MERRILL WAS DESIGNATED AS LEAD UNDERWRITER FOR SEVERAL OF THE AUTHORITY'S BOND OFFERINGS BEFORE MR. CERASOLI'S FINDINGS MR. CERASOLI ALSO HAS ALLEGED THAT MERRILL RECEIVED INFORMATION ON THE WATER AUTHORITY FROM MR. FERBER THAT WAS SUPPOSED TO BE CONFIDENTIAL MR. FERBER HAS DENIED THE INSPECTOR GENERAL'S ASSERTIONS JAMES WIGGINS A MERRILL SPOKESMAN SAID THE FIRM ABSOLUTELY AND CATEGORICALLY STATES THAT IT IS FALSE THAT MERRILL GOT ANY INFORMATION THAT WASN'T ALSO GIVEN TO ALL OTHER FIRMS HE ALSO SAID THE INSPECTOR GENERAL MISCHARACTERIZED THE NATURE OF THE CONTRACT WE HAD WITH LAZARD AND HAS NEVER GIVEN MERRILL A CHANCE TO RESPOND TO HIS FINDINGS HE ADDED THAT MERRILL IS PLEASED TO SERVE AS A SENIOR MANAGER IN THE COMMONWEALTH'S UPCOMING BOND OFFERING AND WE LOOK FORWARD TO RESOLVING ANY OUTSTANDING ISSUES WITH THE REGULATORS EXPLAINING ITS DECISION TO LIMIT MERRILL'S PARTICIPATION THE MASSACHUSETTS TREASURER SAID THAT WHILE IT IS NOT THE ROLE OF THE TREASURER'S OFFICE TO DETERMINE LEGAL LIABILITY THE OFFICE FEELS DUTY BOUND TO EXCLUDE ANY FIRM WHICH MIGHT RAISE PUBLIC CONCERN OR LOWER PUBLIC CONFIDENCE THROUGH ITS PERFORMANCE OF A LEAD ROLE THE TREASURER'S OFFICE ADDED THAT WHILE THIS DECISION ENTAILS THE RISK OF TREATING THAT FIRM UNFAIRLY AND OF LOSING ITS SUPERIOR CAPABILITIES UNDER THE CURRENT CIRCUMSTANCES THESE CONCERNS ARE OUTWEIGHED BY THE PUBLIC INTEREST THE FIRST TRANSACTION TO BE HANDLED BY THE NEW GROUP IS A FIVE HUNDRED MILLION DOLLAR REFUNDING TRANSACTION THE TREASURER'S OFFICE SAID PHYSICIANS HEALTH SERVICES INCORPORATED SAID ITS PHYSICIANS HEALTH SERVICES OF NEW YORK INCORPORATED UNIT RECEIVED NEW YORK STATE INSURANCE DEPARTMENT APPROVAL TO EXPAND ITS SERVICE AREA TO INCLUDE ROCKLAND ORANGE AND DUTCHESS COUNTIES THE MANAGED CARE HEALTH COMPANY SAID THE EXPANSION ADDS SIX HOSPITALS AND TWO HUNDRED FIFTY DOCTORS TO ITS NETWORK U. S. AUTO MAKERS HAVE RAISED THEIR ALREADY OPTIMISTIC PLANS FOR FIRST QUARTER PRODUCTION AS FORD MOTOR COMPANY AND CHRYSLER CORPORATION BEGIN BUILDING NEW MODELS THE AUTO MAKERS NOW EXPECT TO BUILD ONE POINT EIGHT FOUR MILLION PASSENGER CARS UP THREE POINT TWO PERCENT FROM THE ONE POINT SEVEN EIGHT MILLION CARS PLANNED JUST A MONTH AGO PLANNED OUTPUT FOR MINIVANS SPORTUTILITY VEHICLES AND LIGHT TRUCKS REMAINS ROUGHLY AT ONE POINT FOUR THREE MILLION VEHICLES ALTOGETHER COMPANIES BUILDING VEHICLES IN THE U. S. PLAN TO PRODUCE THREE MILLION TWO HUNDRED SEVENTY FIVE THOUSAND ONE HUNDRED TWENTY NINE VEHICLES IN THE FIRST QUARTER UP TWENTY PERCENT FROM TWO MILLION SEVEN HUNDRED TWENTY SIX THOUSAND THREE HUNDRED SEVENTY NINE A YEAR EARLIER INDUSTRY EXPERTS SAY AUTO ANALYSTS SAY THE SURGE IN PLANNED OUTPUT SIGNALS THAT THE AUTO MAKERS EXPECT THE INDUSTRYWIDE SALES RECOVERY TO STRENGTHEN THE RESULT AUTO ANALYSTS FORECAST CONTINUED STRENGTHENING OF PROFITS AT FORD CHRYSLER AND GENERAL MOTORS CORPORATION THE PRODUCTION INCREASE IS STEEPER THAN THE JUMP IN SALES WHICH IN THE PAST THREE MONTHS HAS BEEN RUNNING AT ABOUT TWELVE PERCENT OVER THE PREVIOUS YEAR THAT REFLECTS BOTH A CONTINUING SHIFT OF PRODUCTION TO THE U. S. FROM ABROAD AND OPTIMISM THAT SALES WILL CONTINUE TO RISE QUOTE WE ARE LOOKING AT A HUGE SURGE HERE QUOTE SAID DAVID BRADLEY AN AUTO ANALYST WITH J. P. MORGAN SECURITIES BUT HE SAID HE'S CONCERNED THAT STRONG GROWTH AS EVIDENCED BY JANUARY'S FOURTEEN PERCENT JUMP IN VEHICLE SALES OVER YEAR EARLIER LEVELS COULD STRAIN DETROIT'S PRODUCTION CAPACITY AND HE ADDED A SHORTAGE OF KEY VEHICLES COULD GIVE THE TROUBLED JAPANESE AUTO MAKERS THE EDGE THEY NEED TO REGAIN MARKET SHARE LOST TO THE BIG THREE SOME CAR DEALERS ARE ALREADY COMPLAINING THEY CAN'T KEEP CERTAIN POPULAR MODELS IN STOCK BUT JOHN CASESA WERTHEIM SCHRODER AND COMPANY'S AUTO ANALYST SAID THE INDUSTRY CAN EASILY HANDLE ADDITIONAL GROWTH IN CAPACITY MOST SUPPLIERS AND MANUFACTURERS ARE PLANNING FOR EVEN HIGHER PRODUCTION IN NINETEEN NINETY FIVE WHAT'S REMARKABLE IS THAT WE ARE SEEING SUCH STRONG PRODUCTION RELATIVELY EARLY IN THE SALES CYCLE MR. CASESA SAID THE BIGGEST PRODUCTION INCREASES ARE COMING FROM DETROIT BOTH CHRYSLER AND FORD ARE CONCENTRATING ON IMPROVING PRODUCTIVITY IN EXISTING ASSEMBLY PLANTS TO INCREASE CAPACITY IN ADDITION THE AUTO MAKERS ARE ADDING CAPACITY WITHOUT PUTTING UP ANY HUGE CASH OUTLAYS FOR NEW ASSEMBLY PLANTS FORD FOR EXAMPLE WILL ADD SEVERAL THOUSAND VEHICLES TO ITS PRODUCTION SCHEDULE THIS YEAR WITH THE WINDSTAR MINIVAN THE NEW MINIVAN WILL BE BUILT IN THE ASSEMBLY PLANT THAT USED TO BUILD THE TEMPO SLASH TOPAZ CARS G. M. SAID ITS PLANNED OUTPUT MAY SURPASS ITS OWN FORECASTS IF IT CAN SUCCESSFULLY BOOST PRODUCTION TO COMPENSATE FOR TIME LOST BECAUSE OF HEAVY SNOW LAST MONTH ONE REASON FOR THE STRONG GROWTH IN AUTO PRODUCTION IS THAT THE AVERAGE U. S. CAR IS NOW EIGHT POINT FOUR YEARS OLD THE HIGHEST AVERAGE AGE SINCE THE KOREAN WAR SAID BILL WILSON AN ECONOMIST WITH COMERICA BANK IN DETROIT WHO TRACKS THE AUTOMOTIVE INDUSTRY A FLEET OF OLDER CARS COMBINED WITH STRONG FOURTH QUARTER ECONOMIC GROWTH NATIONALLY AND RISING CONSUMER CONFIDENCE LEADS TO HEAVY EXPECTATIONS OF NEW CARS SALES THE PRECIPITOUS INCREASE IN VEHICLE SCRAPPAGE WILL CONTINUE TO CREATE STRONG DEMAND FOR NEW VEHICLES MR. WILSON SAID LAST YEAR A RECORD THIRTEEN MILLION VEHICLES WERE SCRAPPED AND IN NINETEEN NINETY FOUR AN ADDITIONAL THIRTEEN POINT THREE MILLION VEHICLES WILL BE TAKEN OFF THE ROAD MR. WILSON PREDICTS NEW CAR DEALERS HAD A SIXTY FIVE DAY SUPPLY OF INVENTORY AT THE END OF DECEMBER ACCORDING TO WARD'S AUTOMOTIVE REPORTS A TRADE PUBLICATION A LEVEL THAT'S CONSIDERED IDEAL BY THE INDUSTRY THIS WEEK CHRYSLER IS SHUTTING DOWN ITS BELVIDERE ILLINOIS PLANT WHERE IT ASSEMBLES SUBCOMPACT NEONS BECAUSE OF A PROBLEM WITH A KEY COMPUTER CONTROL PART CONSOLIDATED STORES CORPORATION SAID SALES FOR THE FIVE WEEKS ENDED JANUARY TWENTY NINTH TOTALED SIXTY THREE POINT FOUR MILLION DOLLARS DOWN TWO PERCENT FROM SIXTY FOUR POINT SEVEN MILLION DOLLARS IN THE COMPARABLE PERIOD OF NINETEEN NINETY TWO THE COMPANY SAID COMPARABLE STORE SALES FOR STORES OPEN TWO FULL FISCAL YEARS FELL FOURTEEN PERCENT FOR THE FIVE WEEK PERIOD AND ROSE ONE POINT EIGHT PERCENT FOR THE FISCAL YEAR ENDED JANUARY THIRTIETH CONSOLIDATED STORES OPERATES A CHAIN OF SPECIALTY RETAIL CLOSE OUT STORES NATIONAL SEMICONDUCTOR CORPORATION SAID IT PLANS TO BUY BACK ON THE OPEN MARKET AS MANY AS THREE POINT FIVE MILLION OF ITS COMMON SHARES DURING NINETEEN NINETY FOUR THE COMPANY HAS ABOUT ONE HUNDRED TEN MILLION SHARES CURRENTLY OUTSTANDING THE AMERICAN STOCK EXCHANGE FINED ROBERT BURKE SPRINGFIELD MASSACHUSETTS A FORMER BRANCH OFFICE MANAGER OF DEAN WITTER REYNOLDS INCORPORATED TEN THOUSAND DOLLARS FOR FAILING TO PROPERLY SUPERVISE A BROKER MR. BURKE WAS ALSO BARRED FOR SIX MONTHS AS A BRANCH OFFICE MANAGER REGISTERED OPTIONS PRINCIPAL OR IN ANY OTHER SUPERVISORY POSITION HE DIDN'T ADMIT OR DENY CHARGES THAT HE FAILED TO PROPERLY SUPERVISE A BROKER'S IMPROPER OPTIONS TRADING MR. BURKE COULDN'T BE REACHED FOR COMMENT DEAN WITTER IS A UNIT OF DEAN WITTER DISCOVER AND COMPANY SEPARATELY THE EXCHANGE BARRED FOR TWO YEARS IN ANY SUPERVISORY CAPACITY NINETTE HEREFORD RIVERSIDE CALIFORNIA A FORMER BRANCH OFFICE MANAGER OF CHARLES SCHWAB AND COMPANY SHE DIDN'T ADMIT OR DENY ALLEGATIONS OF FAILING TO SUPERVISE A REGISTERED EMPLOYEE'S HANDLING OF OPTIONS TRADES SHE COULDN'T BE REACHED FOR COMMENT K. L. M. ROYAL DUTCH AIRLINES SAID ITS UNDERLYING BUSINESS GREW STRONGLY AGAIN IN JANUARY THE THIRTY EIGHT POINT TWO PERCENT STATE OWNED DUTCH FLAG CARRIER SAID TOTAL AIRLINE TRAFFIC GREW EIGHTEEN PERCENT TO FIVE HUNDRED THIRTY ONE POINT SIX MILLION TON KILOMETERS FROM FOUR HUNDRED FIFTY POINT NINE MILLION TON KILOMETERS A YEAR EARLIER K. L. M. HAS BEEN RECORDING STRONG MONTHLY GROWTH IN THE VOLUME OF PASSENGERS AND FREIGHT IT CARRIES BUT FARE WARS ON CROWDED AND FIERCELY COMPETITIVE ROUTES HAVE SAPPED INCOME A TON KILOMETER REPRESENTS ABOUT TEN PASSENGERS OR ONE METRIC TON OF FREIGHT CARRIED OVER ONE KILOMETER K. L. M. ALSO FILLED MORE OF ITS AVAILABLE CARGO AND SEATING CAPACITY IN JANUARY CAPACITY UTILIZATION OR LOAD FACTOR ROSE TO SIXTY EIGHT POINT SIX PERCENT LAST MONTH FROM SIXTY FOUR POINT FOUR PERCENT K. L. M. SAID IT SWUNG TO A PROFIT OF FIFTEEN MILLION GUILDERS SEVEN POINT SEVEN MILLION DOLLARS IN THE FISCAL THIRD QUARTER ENDED DECEMBER THIRTY FIRST FROM A NET LOSS OF FOUR HUNDRED THIRTY SEVEN MILLION GUILDERS A YEAR EARLIER REVENUE ROSE SEVEN POINT ONE PERCENT TO TWO POINT ONE ONE BILLION GUILDERS IMPROVED EFFICIENCY AND STEADY OUTLAYS WERE AMONG FACTORS RETURNING K. L. M. TO PROFIT ALTHOUGH THE MAIN CAUSE WAS OVER THREE HUNDRED MILLION GUILDERS OF ONE TIME CHARGES IN THE YEAR EARLIER PERIOD K. L. M. SAID ITS HAULAGE OF CARGO INCLUDING MAIL INCREASED EIGHTEEN PERCENT TO TWO HUNDRED THIRTY FIVE POINT EIGHT MILLION TON KILOMETERS FROM THE ONE HUNDRED NINETY NINE POINT OH MILLION TON KILOMETERS PASSENGER TRAFFIC ROSE SEVENTEEN PERCENT TO TWO HUNDRED NINETY FIVE POINT EIGHT MILLION TON KILOMETERS FROM TWO HUNDRED FIFTY ONE POINT NINE MILLION TON KILOMETERS CANADIAN AND PROVINCIAL GOVERNMENTS ARE EXPECTED TO CUT TOBACCO TAXES SOON IN AN ATTEMPT TO CURB SMUGGLING OF CIGARETTES INTO CANADA DETAILS OF THE PLAN WHICH IS ALSO EXPECTED TO INCLUDE TOUGHER ENFORCEMENT OF ANTI SMUGGLING LAWS COULD BE ANNOUNCED THIS WEEK GOVERNMENT OFFICIALS SAID A CUT IN TOBACCO TAXES HAS BEEN STRONGLY URGED BY THE GOVERNMENT OF QUEBEC WHERE TOBACCO RETAILERS HAVE BEEN PROTESTING THEIR LOSS OF BUSINESS TO SMUGGLING CANADIAN AND PROVINCIAL CIGARETTE TAXES ARE ABOUT FIVE TIMES THE AVERAGE U. S. LEVEL MOST SMUGGLED CIGARETTES ARE MADE IN CANADA EXPORTED DUTY FREE TO THE U. S. AND THEN REROUTED ILLEGALLY INTO CANADA THEY COST ABOUT HALF THE PRICE OF LEGALLY PURCHASED CIGARETTES THE TOBACCO INDUSTRY ESTIMATES THAT THIRTY PERCENT OF ALL CIGARETTES SMOKED IN CANADA ARE SMUGGLED THE CONTRABAND MARKET IS ESTIMATED TO BE AS HIGH AS SIXTY FIVE PERCENT IN QUEBEC CANADIAN HEALTH GROUPS HAVE OPPOSED THE PLANNED TAX CUT THEY SAID LOWER CIGARETTE PRICES WOULD ENCOURAGE SMOKING ESPECIALLY AMONG YOUNG PEOPLE THE BIGGEST HOAX IN AMERICAN POLITICS IS THE SOLEMN ASSERTION THAT CONGRESS WILL QUOTE DEBATE QUOTE AND PASS A QUOTE BUDGET QUOTE TO GOVERN OUR FISCAL AFFAIRS IN TRUTH THERE WILL BE NO DEBATE OR VOTE ABOUT MOST OF YOUR MONEY THE ARCANE RULES OF CONGRESS PERMIT ABOUT TWENTY FIVE KEY MEMBERS TO SPEND ABOUT TWENTY FIVE PERCENT OF THE NATION'S GROSS DOMESTIC PRODUCT THE RESULT IS FISCAL CHAOS AND A GROWING DISTRUST OF CONGRESS THE FEDERAL GOVERNMENT IS AUTHORIZED TO SPEND ONE POINT FIVE ONE THREE TRILLION DOLLARS IN THE CURRENT FISCAL YEAR ALMOST HALF SEVEN HUNDRED FIFTY TWO POINT SEVEN BILLION DOLLARS IS SPENT ON ENTITLEMENTS IF A CONGRESSMAN OR SENATOR WANTS TO REDUCE THIS TYPE OF SPENDING HE MUST INTRODUCE A BILL TO ALTER OR ABOLISH THE ENTITLEMENT THE BILL THEN IS REFERRED TO A COMMITTEE IF THE COMMITTEE CHAIRMAN OPPOSES THE LEGISLATION IT USUALLY DOESN'T GET CONSIDERED SO SEVEN HUNDRED FIFTY TWO POINT SEVEN BILLION DOLLARS FORTY NINE POINT SEVEN PERCENT IS INSULATED FROM DEMOCRACY BY A HANDFUL OF MEMBERS WHO CONTROL THESE KEY COMMITTEES THE TWO HUNDRED TWELVE BILLION DOLLARS WE ARE FORCED TO COMMIT TO DEBT SERVICE IS OBVIOUSLY BEYOND DEBATE THAT LEAVES FIVE HUNDRED FORTY EIGHT POINT THREE BILLION DOLLARS OR THIRTY SIX PERCENT THAT COMES BEFORE CONGRESS IN THE FORM OF THIRTEEN SEPARATE APPROPRIATIONS BILLS THE ONLY REAL DEBATE ON THESE HUGE BILLS OCCURS IF A MEMBER OFFERS AN AMENDMENT THAT SPENDS LESS ON AN EXISTING PROGRAM OR ABOLISHES IT ALL TOGETHER IN THE END THESE AMENDMENTS COVER ONLY ABOUT TEN PERCENT OF THE BUDGET AND THE HUGE APPROPRIATIONS BILLS THEY ARE ATTACHED TO PASS BY NEARLY UNANIMOUS VOTES IN AUGUST REPRESENTATIVE BILL ZELIFF AND I PROPOSED A SPECIAL SESSION OF CONGRESS DEVOTED TO DEBATE OVER FEDERAL SPENDING ANY MEMBER COULD COME TO THE FLOOR AND OFFER ANY PROPOSAL TO CHANGE OR ABOLISH ANY PROGRAM EVERY DOLLAR OF THE BUDGET COULD BE DEBATED AND ALTERED BY DEMOCRATIC VOTE AIDES FROM THE HOUSE LEADERSHIP HAVE CALLED THIS IDEA A THREE RING CIRCUS BUT SEVENTY FOUR DEMOCRATS AND ONE HUNDRED SIXTY REPUBLICANS ENDORSED THE PLAN IN AN AUGUST SIXTH LETTER TO THE SPEAKER REPRESENTATIVE ZELIFF AND I NOW HAVE FILED A BILL THAT WOULD MAKE OUR PLAN HAPPEN WHAT WOULD RESULT FROM FISCAL DEMOCRACY A REAL BUDGET DERIVED FROM DEMOCRATIC DEBATE WHETHER THIS WOULD STEM THE MALIGNANT GROWTH OF FEDERAL SPENDING IS UNCERTAIN BUT AT LEAST THE PUBLIC WOULD SEE WHO WANTS TO SPEND HOW MUCH MONEY AND FOR WHAT PURPOSE MR. ANDREWS A DEMOCRAT FROM NEW JERSEY IS A MEMBER OF THE HOUSE FOR WILLIAM GREENSPAN WHO MAKES HIS LIVING TRADING STOCK INDEX FUTURES CONTRACTS AT THE CHICAGO MERCANTILE EXCHANGE THE FIRST CLUE THAT THE FED HAD TIGHTENED RATES WAS THE TUMULT OF THREE HUNDRED VOICES SCREAMING SIMULTANEOUSLY TO SELL TWO HOURS LATER THE VALUE OF A SINGLE FUTURES CONTRACT ON THE STANDARD AND POOR'S INDEX OF FIVE HUNDRED LEADING STOCKS HAD PLUMMETED SIX THOUSAND FOUR HUNDRED FIFTY DOLLARS TRADERS SLOW TO LIQUIDATE THEIR QUOTE LONG QUOTE POSITIONS OR WAGERS THAT PRICES WOULD RISE WERE SUDDENLY TENS OR EVEN HUNDREDS OF THOUSANDS OF DOLLARS POORER I DON'T KNOW IF THIS IS THE BOTTOM OR IF WE GO DOWN FARTHER FROM HERE SAID A HOARSE AND BREATHLESS MR. GREENSPAN WHO IS NO RELATION TO THE CHAIRMAN OF THE FEDERAL RESERVE I JUST KNOW THAT THIS MARKET GOES DOWN A HECK OF A LOT FASTER THAN IT GOES UP THE FUROR FRIDAY IN THE C. M. E.'S STOCKINDEX PIT WAS JUST ONE EXAMPLE OF AN ELECTRIFYING DAY FOR U. S. DERIVATIVES MARKETS WHICH TRADE FINANCIAL INSTRUMENTS WHOSE VALUES ARE BASED ON OTHER SECURITIES OR COMMODITIES THE C. M. E. LED THE PACK TRADING MORE THAN TWO POINT THREE MILLION FUTURES AND OPTIONS CONTRACTS ABOUT A MILLION MORE CONTRACTS THAN ANY DERIVATIVES EXCHANGE HAS EVER TRADED IN A SINGLE DAY INVESTORS RANGING FROM BANKS AND SECURITIES FIRMS TO INDIVIDUALS PARTICIPATE IN THESE MARKETS USING THEM TO SPECULATE OR TO HEDGE AGAINST UNFAVORABLE SWINGS IN STOCKS AND OTHER SECURITIES AND BECAUSE EACH DERIVATIVES CONTRACT CONTROLS SECURITIES WITH A HIGH DOLLAR VALUE A HUNDRED OR MORE SHARES OF STOCK SAY OR ONE MILLION DOLLARS WORTH OF CURRENCY FRIDAY'S FED TIGHTENING AND THE SUBSEQUENT STOCK MARKET SELL OFF HAD AN EXAGGERATED EFFECT ON DERIVATIVES PRICES PRICES GYRATED WILDLY IN CONTRACTS BASED ON STOCKS INTEREST RATES FOREIGN CURRENCIES AND PRECIOUS METALS MANY IN THE DERIVATIVES INDUSTRY EXPECT MORE FIREWORKS TODAY THE CRITICAL TIME WILL BE LUNCHTIME IN NEW YORK SAID WILLIAM FLOERSCH VICE CHAIRMAN OF THE CHICAGO BOARD OPTIONS EXCHANGE AND OWNER OF A FIRM THAT MAKES MARKETS IN STOCK OPTIONS CONTRACTS EACH OF WHICH REPRESENTS ONE HUNDRED SHARES OF SUCH BLUE CHIP ISSUES AS MCDONALD'S KMART AND XEROX THE MARKETS ARE SORT OF THIN THEN MR. FLOERSCH SAYS AT THAT TIME I THINK THE STOCK MARKET WILL TURN DOWN AND FINISH DOWN ABOUT FIFTY POINTS FOR THE DAY HE BELIEVES THAT FRIDAY'S DOWNDRAFT WAS THE BEGINNING OF A MODEST TWO HUNDRED POINT CORRECTION OF THE DOW JONES INDUSTRIALS WHICH IS NECESSARY HE SAYS BECAUSE THE STOCK MARKET ROSE TOO FAR TOO FAST AT THE C. B. O. E. WHICH IS THE NATION'S BIGGEST STOCK OPTIONS EXCHANGE EXECUTIVES ARE BRACING FOR ANOTHER BIG DAY TODAY AFTER TRADING AN UNUSUALLY HIGH ONE POINT ONE MILLION OPTIONS CONTRACTS FRIDAY JACK WING CHAIRMAN OF THE CHICAGO CORPORATION BROKERAGE FIRM SAID HIS FIRM HANDLED ORDERS FOR ABOUT ONE HUNDRED EIGHTY THOUSAND STOCK OPTIONS CONTRACTS FRIDAY AT THE C. B. O. E. UP FROM ITS NORMAL DAILY VOLUME OF ABOUT EIGHTY THOUSAND CONTRACTS AT THE CHICAGO EXCHANGE NOR ARE STOCK DERIVATIVES THE ONLY INSTRUMENTS AFFECTED BY THE FED POLICY SHIFT THE VAST MAJORITY OF THE C. M. E.'S RECORD TRADING VOLUME FRIDAY WAS IN ITS EURODOLLAR FUTURES AND OPTIONS CONTRACTS WHICH TRACK THE MOVEMENT OF SHORT TERM INTEREST RATES QUOTE THE EURODOLLAR PIT EXPLODED QUOTE MR. GREENSPAN SAID AFTER TRADING IN A RELATIVELY NARROW RANGE FOR MONTHS THE C. M. E. SAID IT TRADED ONE POINT SEVEN MILLION EURODOLLAR FUTURES AND OPTIONS CONTRACTS FRIDAY EACH OF WHICH REPRESENTS ONE MILLION DOLLARS HELD IN AN INTEREST BEARING ACCOUNT OUTSIDE OF THE U. S. THE IMPACT OF THE FED'S ACTION ON THE EURODOLLAR MARKET WAS INTENSIFIED BY THE FACT THAT THE LABOR DEPARTMENT HAD EARLIER RELEASED A MONTHLY UNEMPLOYMENT REPORT MR. GREENSPAN SAID THE C. M. E.'S OPEN INTEREST OR THE NUMBER OF CONTRACTS OUTSTANDING ROSE BY ABOUT ONE HUNDRED THOUSAND FRIDAY THAT C. M. E. OFFICIALS SAY IS AN INDICATION THAT MORE OF THE DAY'S TRADING ACTIVITY WAS INTENDED TO OPEN NEW DERIVATIVES POSITIONS THAN TO CLOSE OUT OLD ONES MUCH OF THE TRADING IN THE EURODOLLAR PIT FOR INSTANCE CAME FROM BANKS LOOKING TO LOCK IN FAVORABLE SHORT TERM INTEREST RATES AND THUS MINIMIZE PAYOUTS RELATED TO THE TIGHTENING OF THE FED FUNDS RATE THE FED TIGHTENING ALSO SENT PRECIOUS AND INDUSTRIAL METALS PRICES SPINNING LOWER AND COULD CONTINUE TO AFFECT THESE AND OTHER COMMODITIES MARKETS THIS WEEK WE HAD A QUICK KNEE JERK REACTION IMMEDIATELY AFTER THE FED ANNOUNCED THE TIGHTENING SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE FACT THAT THE FED CAME OUT AND ANNOUNCED IT TOOK EVERYBODY BY SURPRISE BECAUSE USUALLY THE FED CHANGES RATES THROUGH SOME KIND OF INTERVENTION RATHER THAN A FORMAL ANNOUNCEMENT AT NEW YORK'S COMMODITY EXCHANGE THE PRICE OF GOLD FOR APRIL DELIVERY PLUNGED FIVE DOLLARS AN OUNCE AFTER THE ANNOUNCEMENT TO ABOUT THREE HUNDRED EIGHTY SEVEN DOLLARS AN OUNCE FROM THE DAY'S HIGH OF THREE HUNDRED NINETY TWO DOLLARS AND THIRTY CENTS SILVER FOR MARCH DELIVERY DOVE ABOUT FIFTEEN CENTS TO FIVE DOLLARS AND THIRTY SIX CENTS AN OUNCE FROM THE HIGH OF FIVE DOLLARS AND FIFTY ONE CENTS AN OUNCE IN LATE AFTERNOON HOWEVER AS THE STOCK MARKET'S DECLINE INTENSIFIED THE PRICES OF BOTH GOLD AND SILVER STABILIZED AND BEGAN TO RECOVER EACH FINISHED THE DAY ABOVE ITS LOWS APRIL GOLD SETTLED AT THREE HUNDRED EIGHTY EIGHT DOLLARS AND THIRTY CENTS AN OUNCE AND MARCH SILVER AT FIVE POINT FOUR TWO SEVEN DOLLARS AN OUNCE THE REASON FOR THE LATE DAY RECOVERY MR. O'NEILL SAID IS THAT PRECIOUS METALS PRICES TEND TO BENEFIT FROM A DECLINE IN STOCK PRICES AND IF THE SELL OFF ON WALL STREET CONTINUES THIS WEEK HE SAID METALS PRICES SHOULD CONTINUE TO RISE AS INVESTORS MOVE MONEY FROM STOCKS INTO HARD ASSETS SUCH AS GOLD SILVER AND PLATINUM A CONTINUED STOCK MARKET CORRECTION ALSO COULD AFFECT THE PRICES OF SUCH CONVENTIONAL COMMODITIES AS CATTLE AND COTTON MR. O'NEILL SAID WHICH FOR REASONS THAT BAFFLE MANY ANALYSTS HAVE ALWAYS TENDED TO MOVE IN THE OPPOSITE DIRECTION OF STOCK PRICES LIVESTOCK AND MEATS CATTLE PRICES ARE EXPECTED TO STRENGTHEN THIS WEEK IN THE WAKE OF A CATTLE SURVEY RELEASED FRIDAY BY THE AGRICULTURE DEPARTMENT THE GOVERNMENT PEGGED THE NUMBER OF CALVES BORN IN NINETEEN NINETY THREE AT THIRTY NINE POINT SIX MILLION UP ONE PERCENT FROM NINETEEN NINETY TWO THE GOVERNMENT IN JULY HAD FORECAST A TWO PERCENT GAIN IN THE NINETEEN NINETY THREE CALF CROP THE SMALLER CALF CROP SIGNALS TIGHTER THAN EXPECTED SUPPLIES OF MATURE CATTLE AVAILABLE FOR SLAUGHTER LATER THIS YEAR THE AGRICULTURE DEPARTMENT ESTIMATED THE NUMBER OF CATTLE AND CALVES IN THE U. S. ON JANUARY FIRST AT ONE HUNDRED ONE POINT SEVEN MILLION HEAD UP ONE PERCENT FROM A REVISED SURVEY THAT FOUND ONE HUNDRED POINT SIX MILLION ANIMALS ON JANUARY FIRST NINETEEN NINETY THREE THE SWEEPING BREAK IN INTO THE ON LINE ACCOUNTS OF THOUSANDS OF INTERNET USERS MAY HEIGHTEN ALREADY GROWING CONCERN OVER THE SECURITY OF ON LINE SYSTEMS THOUSANDS OF NEWCOMERS ARE SIGNING ON TO THE INTERNET EACH MONTH OFTEN UNAWARE THAT THE PASSWORDS THEY USE AND THE ACCOUNTS THEY OPEN ARE VULNERABLE TO UNAUTHORIZED ACCESS LATE LAST WEEK AN INTERNET SECURITY INVESTIGATION TEAM SPOTTED WHAT MAY BE THE LARGEST COMPUTER SECURITY BREACH ON THE INTERNET AND URGED TENS OF THOUSANDS OF USERS TO CHANGE THEIR PASSWORDS THE INTRUDERS WHO GAINED UNAUTHORIZED ACCESS ARE KNOWN IN CYBERSPACE CIRCLES AS QUOTE CRACKERS QUOTE RATHER THAN THE POPULAR NAME QUOTE HACKER QUOTE THE GROUP THAT PUT OUT THE WARNING THE COMPUTER EMERGENCY RESPONSE TEAM SAID IT ISN'T CLEAR WHETHER THE CRACKERS HAD VANDALIZED COMPUTER SYSTEMS OR UNLEASHED DAMAGING VIRUSES SECURITY EXPERTS SPECULATED THAT THE BREAK INS WERE CONNECTED TO A HANDFUL OF STUDENTS KNOWN AS THE POSSE THE GROUP HAS BEEN TAUNTING SYSTEMS OPERATORS ON THE INTERNET DEMONSTRATING THAT THEY HAVE INSIDE KNOWLEDGE OF VARIOUS COMPUTER SYSTEMS ACCORDING TO LEN ROSE OWNER OF NETSYS INCORPORATED A PALO ALTO CALIFORNIA COMPANY THAT SELLS ACCESS TO THE INTERNET THESE GUYS GO IN AND TAKE DOWN SYSTEMS JUST TO SAY THEY'VE DONE IT SAID MR. ROSE A FORMER HACKER WHO HAS BECOME A SECURITY CONSULTANT SECURITY EXPERTS SAY SOME MEMBERS OF THE GROUP OPERATE OUT OF PHILADELPHIA AND PHOENIX WE HAVEN'T IDENTIFIED WHO DID IT SAID JAMES SETTLE SPECIAL AGENT FOR THE FEDERAL BUREAU OF INVESTIGATION THERE ARE SO MANY PEOPLE OUT THERE WHO CAN DO THIS MR. SETTLE SAYS THE SAME METHOD OF BREAKING IN HAS BEEN USED SINCE DECEMBER NINETEEN NINETY ONE ON JANUARY FIRST A PROGRAM THAT LOGS PASSWORDS WAS INSTALLED ON COMPUTERS AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY THE PROGRAM COLLECTED MORE THAN THREE THOUSAND PASSWORDS BETWEEN SEVEN A. M. AND NINE P. M. FORCING SYSTEM ADMINISTRATORS TO SEND NOTICES TO THOSE USERS TO CHANGE THEIR PASSWORDS ROB ROBERTSON A SYSTEMS PROGRAMMER THERE SAID HE SPENT A WEEK SHORING UP THE SYSTEM'S SECURITY AND ASSESSING DAMAGE THERE WAS NONE HE SAID QUOTE THIS ISN'T GOING TO GO AWAY QUOTE A SPOKESMAN FOR THE RESPONSE TEAM SAID OF THE INCIDENT WHICH WAS FIRST REPORTED FRIDAY BY THE WASHINGTON POST THE NUMBER OF INFECTED SITES COULD SIGNIFICANTLY INCREASE THE SPOKESMAN SAID HE SAID CRACKERS HAD INSTALLED SOFTWARE PROGRAMS THAT WATCHED USERS LINK UP WITH REMOTE COMPUTERS ON THE INTERNET THEREBY CREATING A LOG OF NAMES AND PASSWORDS AND LATER SIGNING ON UNDER ASSUMED IDENTITIES EUGENE SPAFFORD WHO RESEARCHES SECURITY ISSUES AT PURDUE UNIVERSITY SAID HE KNOWS OF A FEW DOZEN SITES AFFECTED BY THE BREAK INS BUT HE ISN'T CONFIDENT THAT INVADED ORGANIZATIONS WILL CONCEDE THEY HAVE BEEN HIT BUSINESSES ARE SO EXTRAORDINARILY PARANOID AND EMBARRASSED BY THE INTRUDERS THAT THE ISSUE OF NETWORK SECURITY FALLS BY THE WAYSIDE IT'S ENTIRELY THE WRONG APPROACH MR. SPAFFORD SAID IT HINDERS PUBLIC AWARENESS EXPERTS SAY THE RUSH OF COMMERCIAL TRAFFIC ONTO THE INTERNET HAS FRUSTRATED EFFORTS TO TRACK AND THWART BREACHES SINCE MID NINETEEN NINETY THE NUMBER OF BUSINESSES CONNECTING TO THE INTERNET HAS RISEN THIRTY FOLD TO ELEVEN THOUSAND SAID HOWARD FUNK AN INTERNET CONSULTANT IT SEEMS WAREHOUSES HAVE GROWN WHEELS CALLED QUOTE ROLLING INVENTORIES QUOTE TRUCKS HAVE BECOME THE PLACE OF CHOICE FOR JUST IN TIME STOCKPILES EIGHTEEN WHEELERS PULL UP TO FACTORY LOADING DOCKS TO DELIVER PARTS THAT GO ALMOST IMMEDIATELY ONTO PRODUCTION LINES BYPASSING THE WAREHOUSES COMPANIES NOW PRECISELY PLAN THEIR NEED OF INVENTORY SO THAT INTERMEDIATE WAREHOUSES AREN'T NEEDED SAYS DON SCHNEIDER PRESIDENT OF TRUCKING CONCERN SCHNEIDER NATIONAL INCORPORATED AND A MEMBER OF THE CHICAGO FEDERAL RESERVE BANK TO BE SURE JUST IN TIME INVENTORY METHODS AREN'T NEW BUT AS MORE COMPANIES COME AROUND TO THIS APPROACH TRUCKS AND RAILCARS HAVE BEGUN TO FUNCTION AS WAREHOUSES FOR MANY PRODUCERS ADDING YET ANOTHER ANOMALY TO THE ECONOMIC RECOVERY THE CHANGE UNDERCUTS THE USEFULNESS OF MEASURING WAREHOUSE INVENTORIES TO TRACK THE PACE OF A RECOVERY IT ALSO DAMPS THE BOOSTER EFFECT INVENTORY BUILDUPS CAN BRING EARLY IN A RECOVERY INDEED AS DEMAND HAS PICKED UP DURING THIS RECOVERY INVENTORIES HAVE STAYED COMPARATIVELY LOW AND MANUFACTURING JOBS REMAIN HARD TO COME BY HISTORICALLY RETAIL SPACE AND WAREHOUSE SPACE USUALLY MIRROR EACH OTHER DURING ECONOMIC EXPANSIONS AND DOWNTURNS DURING THE MOST RECENT RECESSION FOR INSTANCE COMPANIES CUT PRODUCTION AND CLOSED DOWN STORES DUE TO SHRINKING DEMAND NEW CONSTRUCTION OF STORES AND WAREHOUSES SLUMPED BUT DURING THE RECOVERY THE CONNECTION BETWEEN STORES AND WAREHOUSES HAS BEEN BROKEN SAYS JOHN WALKER AN ANALYST WITH F. W. DODGE IN BOSTON THE CONSTRUCTION OF WAREHOUSE SQUARE FOOTAGE TUMBLED NEARLY EIGHTEEN PERCENT IN NINETEEN NINETY TWO AND NINE PERCENT IN NINETEEN NINETY THREE EVEN AS THE ECONOMY GAINED MOMENTUM AND SPACE IN STORES AND SHOPPING CENTERS GREW SIX PERCENT AND TWELVE PERCENT RESPECTIVELY FOR TRUCKING COMPANIES THE TREND MEANS NEW BUSINESS BUT ALSO MORE DEMANDING CUSTOMERS MANY TRUCKING COMPANIES SAY THAT IN RECENT YEARS THEY'VE COME UNDER INCREASING PRESSURE TO DELIVER PARTS WITHIN A SMALL WINDOW OF TIME THERE ARE SOMETIMES LESS THAN TEN MINUTE LAG TIMES SAYS LARRY MULKEY PRESIDENT OF RYDER DEDICATED LOGISTICS INCORPORATED A MIAMI UNIT OF TRANSPORTATION SERVICES COMPANY RYDER SYSTEM INCORPORATED SUCH USE OF TRUCKS ENABLES BUSINESSES TO CUT SPACE COSTS FREEING UP CAPITAL FOR INVESTMENTS SUCH AS EQUIPMENT OR NEW EMPLOYEES THE BACK ROOM DECREASES IN SIZE BECAUSE YOU DON'T NEED IT TO STORE STOCKPILES AND THAT MEANS YOU HAVE MORE FLOOR SPACE FOR SELLING MR. MULKEY SAYS BUT A HEAVY RELIANCE ON TRUCKS TO KEEP INVENTORIES LOW ISN'T WITHOUT ITS RISKS THE GENERAL MOTORS CORPORATION TOYOTA MOTOR COMPANY JOINT VENTURE IN FREMONT CALIFORNIA ONCE HAD TO SHUT DOWN ITS PRODUCTION LINE BECAUSE A JUST IN TIME DELIVERY TRUCK BROKE DOWN ON THE HIGHWAY KEN SIMONSON CHIEF ECONOMIST OF THE AMERICAN TRUCKING ASSOCIATIONS SAYS TRUCKING FOR JUST IN TIME ORDERS GENERALLY WORKS BETTER IN UNCONGESTED REGIONS OF THE COUNTRY BUT TRUCKING COMPANIES HAVE COME A LONG WAY IN ELIMINATING DELIVERY GLITCHES MR. SCHNEIDER OF SCHNEIDER NATIONAL BOASTS THAT NOT ONE LOAD WAS LATE BECAUSE OF THE ICY WINTRY WEATHER THAT HIT MUCH OF THE NATION RECENTLY TECHNOLOGY ENABLES TRUCKING COMPANIES AND THEIR CLIENTS TO TRACK A LOAD'S PROGRESS FROM MINUTE TO MINUTE IF A PROBLEM COMES UP ANOTHER TRUCK CAN BE DISPATCHED IMMEDIATELY TO PICK UP THE LOAD TRUCKS ALSO HAVE BECOME MORE RELIABLE MECHANICALLY LORAL CORPORATION WON A ONE HUNDRED NINE MILLION DOLLAR CONTRACT TO CONTINUE PRODUCTION OF THE ARMY'S MULTIPLE LAUNCH ROCKET SYSTEM IN NINETEEN NINETY FOUR THE COMPANY SAID ITS VOUGHT SYSTEMS UNIT BASED IN TEXAS WILL PRODUCE THIRTY FOUR LAUNCHERS AND ONE HUNDRED SIXTY SEVEN REDUCED RANGE PRACTICE ROCKET PODS FOR THE ARMY DELIVERIES EXTEND THROUGH MARCH NINETEEN NINETY SEVEN MOST OF THE WORK WILL BE PERFORMED AT THE COMPANY'S CAMDEN ARKANSAS PLANT THE INTERNAL REVENUE SERVICE'S PLANS TO AUDIT MUNICIPAL BOND ISSUES FOR POSSIBLE TAX LAW VIOLATIONS ARE FAR MORE AMBITIOUS THAN THE TWO HUNDRED OR SO AUDITS PREVIOUSLY INDICATED BY THE AGENCY MARCUS OWENS A LEADER OF THE I. R. S. EFFORT TO STRENGTHEN ITS MUNI ENFORCEMENT PROGRAM TOLD LAWYERS AND FINANCE OFFICERS RECENTLY THAT THE AGENCY WAS PLANNING TO AUDIT UP TO TWO HUNDRED MUNI ISSUES TO ESTABLISH A STATISTICALLY VALID INDICATION OF THE STATE OF VOLUNTARY COMPLIANCE WITH TAX RULES GOVERNING MUNICIPAL BONDS BUT MR. OWENS CLARIFYING HIS COMMENTS IN A SUBSEQUENT INTERVIEW SAID THE AGENCY PLANS QUOTE MULTIPLE SETS OF ONE HUNDRED TO TWO HUNDRED AUDITS QUOTE FOR DIFFERENT CATEGORIES OF TAXEXEMPT BOND ISSUES THE I. R. S. HASN'T DETERMINED THE EXACT NUMBER OF CATEGORIES IT WILL CREATE FOR THESE AUDITS BUT MR. OWENS INDICATED THERE COULD EASILY BE FIVE OR SIX CATEGORIES ENTAILING UP TO TWO HUNDRED AUDITS EACH I WOULD NOT EXPECT THE AUDITS TO BEGIN UNTIL NEXT FISCAL YEAR DUE TO THE PLANNING PROCESS THE I. R. S. OFFICIAL SAID PRESIDENT CLINTON WILL HOLD AN INTERNATIONAL JOBS SUMMIT IN DETROIT NEXT MONTH TO TACKLE THE GLOBAL PROBLEM OF PERSISTENTLY HIGH UNEMPLOYMENT THE WHITE HOUSE ANNOUNCED THE MARCH FOURTEENTH TO FIFTEEN CONFERENCE WILL BRING TOGETHER ECONOMIC LABOR FINANCE AND INDUSTRY MINISTERS FROM THE GROUP OF SEVEN INDUSTRIALIZED DEMOCRACIES THE U. S. CANADA GERMANY ITALY JAPAN FRANCE AND BRITAIN THE CONFERENCE QUOTE WILL SEND A MESSAGE THAT WE INTEND TO CONFRONT THE CHALLENGE OF JOB CREATION AND UNEMPLOYMENT NOT RETREAT TO THE ECONOMIC STRUCTURES OF YESTERDAY QUOTE THE WHITE HOUSE ANNOUNCEMENT SAID DURING A G. SEVEN MEETING LAST JULY IN TOKYO MR. CLINTON ANNOUNCED HIS INTENTION TO CONVENE SUCH A CONFERENCE HE SAID THEN THE G. SEVEN OFFICIALS WOULD SEARCH FOR THE CAUSES AND POSSIBLE ANSWERS FOR THIS STUBBORNLY HIGH UNEMPLOYMENT THE PRESIDENT ORIGINALLY HOPED TO HOLD THE MEETING LAST FALL BUT IT WAS PUSHED INTO NINETEEN NINETY FOUR BY THE CRUSH OF OTHER ITEMS ON HIS FIRST YEAR AGENDA IN LAWRENCE KANSAS POP SIXTY FIVE THOUSAND SIX HUNDRED TOURIST ATTRACTIONS HAVE LONG BORDERED ON THE DESPERATE A MUSEUM FOR INSTANCE FEATURES A TRIBUTE TO THE SOLE SURVIVOR OF CUSTER'S LAST STAND COMANCHE THE HORSE NIGHTLIFE IS QUOTE LIMITED TO DINNER AND A MOVIE QUOTE SAYS MILAN VINNOLA A UNIVERSITY OF KANSAS STUDENT BUT MUNICIPAL OFFICIALS THINK THEY HAVE THE SOLUTION THE PLAY'S THE THING SPECIFICALLY THE ONE WOMAN PLAYS OF LOCAL DRAMA PROFESSOR KAY KUHLMANN SINCE THE FORTY FOUR YEAR OLD ARTIST BEGAN PERFORMING HER PORTRAITS OF MAMIE EISENHOWER BESS TRUMAN AND OTHER FAMOUS WOMEN IN LOCAL THEATERS AND LIBRARIES LAWRENCE HAS BEGUN TO ATTRACT TOURISTS FOR THE PAST TWO YEARS MS. KUHLMANN'S PERFORMANCES HAVE BEEN INCLUDED ON HISTORICAL THEME MOTORCOACH TOURS THROUGH THE GREAT PLAINS LAWRENCE TOUR OPERATOR MAUPINTOUR INCORPORATED SAYS IT SOLD FOUR TIMES MORE PACKAGES LAST YEAR THAN IN NINETEEN NINETY TWO AND NINETEEN NINETY FOUR BOOKINGS ARE STRONG OFFICIALS AT THE LOCAL CHAMBER OF COMMERCE WHICH RUNS THE LAWRENCE CONVENTION AND VISITORS BUREAU ARE RELIEVED IN APRIL THE CONVENTION BUREAU PLANS TO GIVE MS. KUHLMANN AN AWARD FOR HER CONTRIBUTIONS TO TOURISM HER SHOWS ARE REAL INTIMATE SAYS JUDY BILLINGS OF THE CHAMBER THEY'RE NOT A GRAND PRODUCTION LIKE YOU'LL FIND IN BRANSON MISSOURI POP THREE THOUSAND SEVEN HUNDRED SEVENTY SEVEN IN HER PERFORMANCES MS. KUHLMANN DRESSES IN PERIOD COSTUMES DOES HER HAIR IN THE CHARACTER'S STYLE AND ADOPTS HER DICTION I HAVE REAL VERSATILE HAIR SHE SAYS MS. KUHLMANN DIDN'T BEGIN RESEARCHING MAMIE EISENHOWER'S LIFE WITH THE AIM OF BECOMING A TOURIST ATTRACTION BUT NOW WITH THE LIVES OF HILLARY CLINTON TOKYO ROSE AND PIONEER WOMEN OF THE OREGON TRAIL IN HER REPERTOIRE THE PLAYWRIGHT IS TRANSLATING LOCAL FAME INTO BIGGER THINGS SHE'LL PLAY BESS TRUMAN AT THE NATIONAL ARCHIVES IN WASHINGTON THIS SPRING AND ON THE FOURTH OF JULY SHE'LL PERFORM AS MAMIE EISENHOWER AT THE RONALD REAGAN PRESIDENTIAL LIBRARY IN CALIFORNIA AFTER INTERVIEWING THE FIRST LADY'S PRESS SECRETARY FOR TIPS ON MRS. CLINTON'S DEMEANOR MS. KUHLMANN SAYS SHE HOPES TO HAVE A CHANCE TO MEET NANCY REAGAN AND DO A PLAY ABOUT HER FOR NOW THE ACTRESS IS WORKING ON A NEW PLAY ABOUT PATSY CLINE I'VE ALWAYS WANTED TO BE A COUNTRY WESTERN SINGER SHE SAYS EMERGING MEXICO FUND INCORPORATED NEW YORK SAID IT PLANS TO SELL ABOUT TWO POINT TWO MILLION COMMON SHARES THROUGH A RIGHTS OFFERING TO SHAREHOLDERS HOLDERS WILL RECEIVE ONE RIGHT FOR EACH SHARE HELD AND MAY PURCHASE AT A DISCOUNT ONE SHARE FOR EACH THREE RIGHTS HELD THE CLOSED END FUND WHICH INVESTS PRIMARILY IN MEXICAN EQUITY SECURITIES HAS ABOUT SIX POINT SEVEN MILLION SHARES OUTSTANDING AND ABOUT ONE HUNDRED FIFTY SIX MILLION DOLLARS IN ASSETS IN NEW YORK STOCK EXCHANGE TRADING FRIDAY THE FUND'S SHARES CLOSED AT TWENTY THREE POINT EIGHT SEVEN FIVE DOLLARS DOWN SEVENTY FIVE CENTS VOLKSWAGEN A. G. AS EXPECTED OUSTED THE CHAIRMAN OF ITS AUDI A. G. DIVISION THE GERMAN AUTO MAKER SAID FRANZJOSEF KORTUEM WOULD BE SUCCEEDED BY HERBERT DEMEL EFFECTIVE IMMEDIATELY HOWEVER THE TITLE OF CHAIRMAN AT AUDI IS BEING DONE AWAY WITH AND THE FORTY YEAR OLD MR. DEMEL WILL HAVE THE LESSER TITLE OF BOARD SPOKESMAN INDICATING AN ATTEMPT TO BRING THE POWER CENTER CLOSER TO V. W. HEADQUARTERS INDUSTRY OBSERVERS SAID MR. DEMEL HAD BEEN CHIEF FOR TECHNICAL DEVELOPMENT V. W. GAVE NO OFFICIAL EXPLANATION FOR THE MANAGEMENT CHANGE BUT SAID IT WAS A QUOTE MUTUALLY AGREED UPON QUOTE DECISION BUT PEOPLE CLOSE TO V. W. WHO HAD LEAKED WORD EARLIER THIS WEEK THAT MR. KORTUEM WOULD GET THE AX SAID IT REFLECTED V. W. CHAIRMAN FERDINAND PIECH'S DISPLEASURE WITH THE LOSSES AUDI EXPERIENCED UNDER THE FORTY THREE YEAR OLD MR. KORTUEM'S LEADERSHIP LAST YEAR MR. KORTUEM COULDN'T BE REACHED FOR COMMENT AUDI IS EXPECTED TO POST A PRETAX LOSS OF AROUND THREE HUNDRED MILLION MARKS ONE HUNDRED SEVENTY TWO MILLION DOLLARS FOR NINETEEN NINETY THREE COMPARED WITH A FIVE HUNDRED EIGHT MILLION MARK PRETAX PROFIT IN NINETEEN NINETY TWO HARPERCOLLINS PUBLISHERS A UNIT OF NEWS CORPORATION SAID WILLIAM M. SHINKER RESIGNED AS HEAD OF THE COMPANY'S ADULT CONSUMER DIVISION MR. SHINKER FORTY SIX YEARS OLD SAID HE HAS NO CAREER PLANS FOLLOWING HIS FEBRUARY EIGHTEENTH DEPARTURE HARPERCOLLINS NAMED JACK MCKEOWN FORTY ONE WHO JOINED THE PUBLISHER A YEAR AGO AS MR. SHINKER'S DEPUTY TO PUBLISHER OF ADULT CONSUMER BOOKS MR. SHINKER'S RESIGNATION COMES AS A SHOCK BECAUSE HARPERCOLLINS JUST COMPLETED ONE OF ITS MOST SUCCESSFUL YEARS EVER PUBLISHING AN IMPRESSIVE STRING OF BESTSELLERS MR. SHINKER IS WIDELY CONSIDERED A VERY SAVVY PUBLISHER AND HE HAS SPENT A DECADE BUILDING UP THE ADULT DIVISION SOME PUBLISHING INSIDERS SAY MR. SHINKER LATELY HAS BEEN CLASHING WITH GEORGE CRAIG HARPERCOLLINS'S CHIEF EXECUTIVE OFFICER OVER HOW MUCH WAS SPENT ACQUIRING NEW BOOKS AND HOW ACCOUNTING FOR THEM HAS BEEN HANDLED REACHED AT HIS OFFICE MR. SHINKER SAID QUOTE I KNOW THIS IS A SHOCK TO OTHER PEOPLE BUT I CAN'T TALK ABOUT THE REASONS AND I DON'T WANT TO QUOTE MR. SHINKER'S WIFE SUSAN MOLDOW WILL REMAIN EDITOR IN CHIEF OF THE ADULT CONSUMER DIVISION M. C. I. COMMUNICATIONS CORPORATION SAID IT COMPLETED THE ACQUISITION OF MOST ASSETS AND BUSINESSES OF B. T. NORTH AMERICA INCORPORATED A DATA COMMUNICATIONS SERVICES COMPANY FROM BRITISH TELECOMMUNICATIONS P. L. C. FOR ONE HUNDRED TWENTY FIVE MILLION DOLLARS THE ACQUISITION IS PART OF A WIDE RANGING ALLIANCE BETWEEN THE TWO TELECOMMUNICATIONS GIANTS IN WHICH BRITISH TELECOM WILL BUY TWENTY PERCENT OF M. C. I. FOR FOUR POINT THREE BILLION DOLLARS M. C. I. SAID THE ALLIANCE IS STILL UNDER REGULATORY REVIEW IN THE U. S. AND EUROPE SHAWMUT NATIONAL CORPORATION IS COMFORTABLE WITH ANALYSTS' EXPECTATIONS OF NINETEEN NINETY FOUR NET INCOME OF TWO DOLLARS AND EIGHTY CENTS TO THREE DOLLARS A SHARE CHAIRMAN JOEL B. ALVORD SAID IN NINETEEN NINETY THREE THE BANK HOLDING COMPANY HAD NET INCOME OF TWO HUNDRED NINETY POINT SEVEN MILLION DOLLARS OR TWO DOLLARS AND NINETY THREE CENTS A SHARE INCLUDING FORTY SIX MILLION DOLLARS OR FORTY NINE CENTS A SHARE IN TAX CREDITS AND GAINS FROM ACCOUNTING CHANGES MR. ALVORD SAID IN AN INTERVIEW THAT HE EXPECTS NINETEEN NINETY FOUR TO BE A QUOTE GOOD YEAR QUOTE WITH NO TAX CREDITS RECORDED AS A COMPANY SHAWMUT CAME THROUGH A DEEP RECESSION WELL CAPITALIZED WITH STRONG EARNINGS A RESTORED DIVIDEND AND A LEADERSHIP POSITION IN CONSUMER BANKING AND MORTGAGE BANKING SHAWMUT IS BACK HE SAID SHAWMUT'S LOAN PORTFOLIO SHOULD INCREASE TEN PERCENT IN NINETEEN NINETY FOUR FROM FIFTEEN POINT THREE EIGHT BILLION DOLLARS AT DECEMBER THIRTY FIRST ALVORD SAID WE'RE DRAMATICALLY UNDER LOANED AS A BANK HE SAID OUR LOAN PORTFOLIO IS AT FIFTEEN BILLION DOLLARS IT SHOULD BE AT TWENTY BILLION DOLLARS MR. ALVORD SAID FUTURE GROWTH WILL STEM FROM SHAWMUT'S SPECIALIZED LENDING BUSINESS WHICH FOCUSES ON THE RADIO TELEVISION AND CABLE INDUSTRIES AND THE ASSET BASED LENDING SECTOR WHICH ARRANGES SMALL AND MEDIUM SIZED BUSINESS LOANS USING CUSTOMERS' ASSETS AS COLLATERAL MR. ALVORD SAID THE SPECIALIZED LENDING PORTFOLIO SHOULD GROW FORTY PERCENT IN NINETEEN NINETY FOUR FROM ONE POINT ONE THREE BILLION DOLLARS AT DECEMBER THIRTY FIRST THE ASSET BASED LENDING PORTFOLIO SHOULD GROW THIRTY FIVE PERCENT HE SAID THIS PORTFOLIO TOTALED EIGHT HUNDRED FIFTY ONE MILLION DOLLARS ON DECEMBER THIRTY FIRST SHAWMUT ALSO EXPECTS TO GROW THROUGH REGIONAL ACQUISITIONS THE BANKING CONCERN WHICH IS BASED IN HARTFORD CONNECTICUT SAID IT EXPECTS TO SUBMIT NINETEEN NINETY THREE RACIAL DATA ON MORTGAGE LOANS AND REJECTIONS TO THE FEDERAL RESERVE BOARD THIS MONTH IN ORDER TO REQUEST THAT THE FED RECONSIDER ITS APPLICATION TO ACQUIRE NEW DARTMOUTH BANK IN MANCHESTER N. H. IN NOVEMBER THE FED REJECTED THE APPLICATION BECAUSE OF CONCERNS ABOUT SHAWMUT'S COMPLIANCE WITH FAIR LENDING LAWS SHAWMUT HAS SINCE SETTLED LENDING DISCRIMINATION CHARGES WITH THE JUSTICE DEPARTMENT MR. ALVORD SAID HE EXPECTS TO CLOSE THE NEW DARTMOUTH ACQUISITION LATE IN THE FIRST QUARTER SHAWMUT'S PENDING ACQUISITIONS OF PEOPLES BANCORP OF WORCESTER INCORPORATED WORCESTER MASSACHUSETTS AND GATEWAY FINANCIAL CORPORATION OF NORWALK CONNECTICUT ARE WAITING FOR APPROVAL BY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY SHAWMUT EXPECTS THEM TO CLOSE BY JUNE MR. ALVORD SAID THE THREE ACQUISITIONS WOULD ADD FOUR BILLION DOLLARS TO FOUR POINT FIVE BILLION DOLLARS IN ASSETS TO SHAWMUT WHICH IS NEW ENGLAND'S THIRD LARGEST BANKING COMPANY BEHIND FLEET FINANCIAL GROUP INCORPORATED AND BANK OF BOSTON CORPORATION CORRPRO COMPANIES MEDINA OHIO SIGNED A LETTER OF INTENT TO ACQUIRE UNITED CORROSION CONSULTANTS LIMITED OF EDMONTON ALBERTA CORRPRO WHICH PROVIDES CORROSION CONTROL ENGINEERING SERVICES SAID UNITED CORROSION HAD SALES OF ABOUT SEVEN POINT FIVE MILLION DOLLARS IN NINETEEN NINETY THREE TERMS WEREN'T DISCLOSED P. P. G. INDUSTRIES INCORPORATED PITTSBURGH SAID IT COMPLETED THE ACQUISITION OF THE EUROPEAN ORIGINAL EQUIPMENT AUTOMOTIVE COATING BUSINESS OF AKZO N. V. OF THE NETHERLANDS TERMS WEREN'T DISCLOSED RFS HOTEL INVESTORS INCORPORATED MEMPHIS TENNESSEE HAS AGREED TO BUY SIXTEEN HOTELS IN THE MIDWEST FROM M. B. C. A MADISON WISCONSIN CONCERN AND RELATED PARTNERSHIPS FOR ABOUT NINETY SIX MILLION DOLLARS IOMEGA CORPORATION ROY UTAH CONCLUDED THE SALE OF ITS THIN FILM HEAD DIVISION LOCATED IN FREMONT CALIFORNIA TO A UNIT OF AIWA COMPANY OF JAPAN THE SALE WAS INCLUDED IN THE TWELVE POINT SIX MILLION DOLLAR RESTRUCTURING CHARGE IOMEGA REPORTED FOR THE FOURTH QUARTER OF NINETEEN NINETY THREE TERMS WEREN'T DISCLOSED SUNBEAM OSTER COMPANY FORT LAUDERDALE FLORIDA SAID IT WILL BUILD A SIXTY MILLION DOLLAR SEVEN HUNDRED NINETY THOUSAND SQUARE FOOT MANUFACTURING AND DISTRIBUTION FACILITY IN HATTIESBURG MISSISSIPPI OFFICIALS SAID THE PLANT EVENTUALLY WILL EMPLOY ABOUT NINE HUNDRED WORKERS THE RETAILER OF COSMETICS FRAGRANCES AND BEAUTY AIDS WHOSE STORES ARE CONCENTRATED IN THE MIDWEST AND MID ATLANTIC REGIONS SAID SEVERE WINTER WEATHER HURT SALES OHIO CASUALTY CORPORATION SAID IT EXPECTS CLAIMS FROM THE SEVERE WINTER WEATHER IN THE MIDWEST AND NORTHEAST IN JANUARY TO CUT FIRST QUARTER EARNINGS BY THIRTY EIGHT CENTS A SHARE THE COMPANY SAID IT HAS RECEIVED SOME FOUR THOUSAND TWO HUNDRED CLAIMS TO DATE BECAUSE OF WINTER STORMS THE MAJORITY OF THE CLAIMS INVOLVED PROPERTY DAMAGE IN THE YEAR AGO QUARTER THE COMPANY EARNED NINETEEN POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND TEN CENTS A SHARE PEPSICO INCORPORATED BEGAN SOFT DRINK PRODUCTION IN HO CHI MINH CITY FRIDAY WITHIN HOURS OF PRESIDENT CLINTON'S LIFTING OF THE TRADE EMBARGO AGAINST VIETNAM WHILE COCA COLA COMPANY IS BUSY PREPARING ITS FORMAL ENTRY INTO THAT COUNTRY PEPSICO THE PURCHASE N. Y. BEVERAGE COMPANY PRODUCED FORTY THOUSAND BOTTLES FOR SAMPLING PURPOSES AND PLANS TO BE FULLY OPERATIONAL IN A WEEK A SPOKESMAN SAID THE PEPSI COLA INTERNATIONAL UNIT HAS SIGNED A PRELIMINARY AGREEMENT WITH ONE OF VIETNAM'S LARGEST BEVERAGE COMPANIES TO BOTTLE SOFT DRINKS IN THAT COUNTRY ALREADY PREPARED IS PEPSI'S FIRST T. V. COMMERCIAL AIMED AT THE VIETNAMESE MARKET PRODUCED BY OGILVY AND MATHER A COKE OFFICIAL SAID PRODUCTION WOULD BEGIN AS SOON AS CONCENTRATE AND OTHER NECESSARY MATERIALS CAN BE BROUGHT INTO THE COUNTRY COKE ALREADY ENJOYS WIDE DISTRIBUTION ON THE BLACK MARKET ATLANTA BASED COKE AND SINGAPORE SOFT DRINKS COMPANY FRASER AND NEAVE LIMITED FORMED A VENTURE IN MARCH WITH THAI PURE SOFT DRINKS LIMITED IN A MOVE TO TAP THE INDOCHINESE MARKET THE VENTURE WILL PRODUCE COKE AND OTHER SOFT DRINKS IN HO CHI MINH CITY AND HANOI I. T. T. CORPORATION SAID THE PREVIOUSLY ANNOUNCED SPINOFF OF ITS I. T. T. RAYONIER TIMBER AND FOREST PRODUCTS UNIT WOULD BE DISTRIBUTED FEBRUARY TWENTY EIGHTH TO STOCK OF RECORD FEBRUARY TWENTY FOURTH I. T. T. SHAREHOLDERS WILL RECEIVE ONE RAYONIER INCORPORATED SHARE FOR EACH FOUR SHARES HELD HOLDERS OF SERIES N. PREFERRED STOCK WILL RECEIVE ONE RAYONIER SHARE FOR EACH THREE POINT ONE FIVE NINE SHARES HELD RAYONIER INCORPORATED WILL TRADE ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL RYN I. T. T. ALSO HAS INTERESTS IN INSURANCE FINANCIAL SERVICES AUTOMOTIVE PARTS HOTELS AND DEFENSE CHINA HAS FINED A SECURITIES BROKERAGE HOUSE AND SUSPENDED ITS OPERATING LICENSE IN WHAT OFFICIALS CALLED THE COUNTRY'S FIRST CRACKDOWN ON INSIDER TRADING THE SHANGHAI BRANCH OF THE BROKERAGE HOUSE XIANGFAN CREDIT AND INVESTMENT COMPANY A UNIT OF THE AGRICULTURAL BANK OF CHINA USED ADVANCE KNOWLEDGE OF A CORPORATE RAID TO REAP PROFITS ON THE STOCK OF THE SHANGHAI LISTED TARGET COMPANY ACCORDING TO FINDINGS BY THE BEIJING BASED SECURITIES SUPERVISORY COMMITTEE THE FINDINGS WERE REPORTED IN THE WEEKEND EDITION OF THE SHANGHAI SECURITIES NEWS SHENZHEN BASED BAO AN ENTERPRISES'S RAID ON SHANGHAI'S YANZHONG INDUSTRIAL WAS CHINA'S FIRST MARKET TAKEOVER ATTEMPT SINCE STOCK MARKETS WERE REVIVED IN NINETEEN NINETY ONE THE ATTEMPT RESULTED IN THE FINING OF BAO AN WHICH WAS CITED FOR ACCUMULATING IN EXCESS OF FIVE PERCENT OF A LISTED COMPANY WITHOUT MAKING A DISCLOSURE SINCE THAT TIME CHINA HAS EXPERIENCED A RUSH OF CORPORATE RAIDS AT LEAST ONE OF WHICH RESULTED IN THE RAIDER GAINING A DEGREE OF MANAGEMENT CONTROL OVER THE TARGET COMPANY THE SECURITIES SUPERVISORY COMMITTEE PRESENTED THE PUNISHMENT OF XIANGFAN AS THE FIRST STEP IN A CONTINUING INVESTIGATION OF TRADES RELATED TO THE BAO AN YANZHONG INCIDENT AND SUGGESTED THAT THE INVESTIGATION MAY REVEAL OTHER VIOLATORS OFFICIALS OF XIANGFAN COULD NOT BE REACHED FOR COMMENT OVER THE WEEKEND INVESTORS IN CHINA'S DOMESTIC A SHARE STOCK MARKETS FREQUENTLY COMPLAIN THAT INSIDER TRADING RUNS RAMPANT AMONG BUSINESS LEADERS GOVERNMENT OFFICIALS AND BROKERS WHO HAVE ACCESS TO UNDISCLOSED INFORMATION ABOUT REGULATORY POLICIES AND CORPORATE ANNOUNCEMENTS PARTLY FOR THAT REASON INVESTORS HAVE TURNED SOUR ON MANY A SHARE FIRMS LEAVING THE MARKET IN THE DOLDRUMS FOR THE BETTER PART OF A YEAR XIANGFAN MADE SIXTEEN POINT SEVEN MILLION YUAN ONE POINT NINE MILLION DOLLARS IN PROFITS BY BUYING YANZHONG STOCK BEFORE THE TAKEOVER ATTEMPT AND THEN UNLOADING AT THE HEIGHT OF FURIOUS BUYING BY SPECULATORS THE SUPERVISORY COMMITTEE SAID TO FINANCE THE STOCK PURCHASES THE FIRM USED SIX POINT SEVEN MILLION YUAN OF CASH DEPOSITS OF INVESTORS IT REPRESENTS VIOLATING ANOTHER REGULATION AGAINST INTERMINGLING OF AGENT AND CLIENT TRADES UNDER THE RULING ALL OF XIANGFAN'S RELATED TRADING PROFITS WERE CONFISCATED THE FIRM WAS FINED AN ADDITIONAL TWO MILLION YUAN AND THE SHANGHAI OFFICE OF THE COMPANY WILL BE EFFECTIVELY SHUT DOWN FOR TWO MONTHS THE FIRM MUST ALSO SELL OFF THE FIVE THOUSAND THREE HUNDRED YANZHONG SHARES IT STILL HOLDS DURING THE NEXT THREE TRADING SESSIONS TURNING OVER ANY PROFIT TO THE STATE TREASURY CENTEX CORPORATION SAID IT PLANS TO SELL A FIFTY ONE PERCENT STAKE IN ITS CONSTRUCTION PRODUCTS SUBSIDIARY THROUGH AN INITIAL PUBLIC OFFERING THAT IS EXPECTED TO RAISE AS MUCH AS ONE HUNDRED SEVENTY THREE POINT FOUR MILLION DOLLARS CENTEX ONE OF THE NATION'S LARGEST HOME BUILDERS SAID IT WILL USE PROCEEDS TO REDUCE DEBT THE UNIT CENTEX CONSTRUCTION PRODUCTS INCORPORATED MAKES CEMENT READY MIX CONCRETE AND GYPSUM WALLBOARD CENTEX CORPORATION SAID THE MOVE IS DESIGNED TO MAKE IT EASIER FOR THE CONSTRUCTION PRODUCTS OPERATION TO RAISE CAPITAL AND MAKE ACQUISITIONS QUOTE WE LIKE THE BUSINESS AND WE WANT TO EXPAND IT QUOTE SAID LAURENCE E. HIRSCH CENTEX CORPORATION'S CHAIRMAN AND CHIEF EXECUTIVE THE CASH INFUSION MEANWHILE WILL HELP PROTECT CENTEX CORPORATION AGAINST A POSSIBLE DOWNTURN IN THE REAL ESTATE MARKET MR. HIRSCH SAID WHILE THE COMPANY HAS BEEN RIDING HIGH BECAUSE OF LOW INTEREST RATES AND THE HOUSING REBOUND WE'RE IN THE REAL ESTATE BUSINESS AND PREPARING FOR CYCLES HE SAID CENTEX CONSTRUCTION PRODUCTS HAS BENEFITED OF LATE FROM HIGHER CEMENT AND GYPSUM PRICES AND THE UNIT'S LOSS PLAGUED NEW MEXICO GYPSUM OPERATION IS NOW PROFITABLE ANALYSTS SAID IT'S A BUSINESS THAT TURNED THE CORNER ABOUT A YEAR AGO SAID LAWRENCE J. HORAN OF PRUDENTIAL SECURITIES RESEARCH INCORPORATED CURRENT MANAGEMENT WILL CONTINUE TO RUN CENTEX CONSTRUCTION PRODUCTS THE COMPANY SAID AND MR. HIRSCH WILL BE CHAIRMAN OF THE AFFILIATE THE INITIAL PUBLIC OFFERING OF TEN POINT TWO MILLION SHARES EXPECTED TO BE PRICED BETWEEN FIFTEEN DOLLARS AND SEVENTEEN DOLLARS A SHARE WILL BE MANAGED BY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION DILLON READ AND COMPANY AND LEHMAN BROTHERS ROSS PEROT AND HIS FOLLOWERS HAVE SERVED NOTICE THAT THEY INTEND TO TAKE A MORE ACTIVE ROLE IN THE DEBATE OVER HEALTH CARE REFORM AND NOT IN A WAY THAT WILL HELP PRESIDENT CLINTON'S PROPOSALS HEALTH CARE WHICH HASN'T GENERALLY BEEN A PRIMARY ISSUE FOR MR. PEROT AND HIS FOLLOWERS APPEARED TO RISE IN PROMINENCE AT A WEEKEND CONVENTION OF MR. PEROT'S POLITICAL ORGANIZATION UNITED WE STAND AMERICA IN PARTICULAR MR. PEROT AND HIS GROUP'S STATE LEADERS GAVE A WARM RECEPTION TO REPRESENTATIVE JIM COOPER D. TENNESSEE CO AUTHOR OF A MORE MODERATE HEALTH CARE PLAN THAT HAS EMERGED AS THE CHIEF ALTERNATIVE TO THE CLINTON PROPOSAL AFTER MR. COOPER'S PRESENTATION MR. PEROT SAID HIS ORGANIZATION ISN'T YET ENDORSING ANY HEALTH PLAN BUT SAID THAT THE GROUP QUOTE MAY ENDORSE QUOTE THE COOPER APPROACH DOWN THE ROAD AND HE OFFERED NOTHING BUT CRITICAL COMMENTARY ON THE CLINTON PLAN GOVERNMENT TAKES OVER THE HEALTH CARE SYSTEM UNDER THE CLINTON PROGRAM MR. PEROT ASSERTED PERHAPS MORE IMPORTANT MR. PEROT TOLD THE STATE CHAIRMEN OF HIS ORGANIZATION I WOULD URGE YOU TO MAKE THIS A KEY ISSUE WITH FOLLOWERS AROUND THE COUNTRY MR. PEROT SPEAKING AT THE UNITED WE STAND GATHERING IN DALLAS PREDICTED THERE WILL BE A RAGING DEBATE AMONG OUR PEOPLE OVER PRECISELY WHAT POSITION TO TAKE ON HEALTH CARE EVEN BEFORE THIS WEEKEND'S ACTIVITIES UNITED WE STAND LEADERS HAD SET UP WORKING GROUPS TO STUDY HEALTH CARE REFORM IN EVERY STATE SAID A SPOKESWOMAN AND VIDEOTAPES OF THE COOPER PRESENTATION ARE TO BE DISTRIBUTED AMONG THE STATE UNITED WE STAND CHAPTERS MR. PEROT SAID STILL THERE IS SOME UNCERTAINTY WITHIN THE PEROT ORGANIZATION ABOUT HOW DEEPLY IMMERSED TO BECOME IN THE HEALTH CARE DEBATE SOME OF MR. PEROT'S FOLLOWERS PREFER TO STICK TO THE CORE PEROT AGENDA OF DEMANDING VARIOUS REFORMS OF THE WAY GOVERNMENT DOES BUSINESS SUCH AS TERM LIMITS FOR MEMBERS OF CONGRESS A LINE ITEM VETO TO CUT SPENDING A BALANCED BUDGET AMENDMENT AN END TO POLITICAL ACTION COMMITTEE DONATIONS AND AN OVERHAUL OF CAMPAIGN FINANCE AND LOBBYING RULES WHITE HOUSE OFFICIALS HAVE SUSPECTED THAT MR. PEROT WOULD CHOOSE TO KEEP A LOW PROFILE ON HEALTH CARE ARGUING THAT HIS CREDIBILITY IS SUSPECT ON THE ISSUE THEY HAVE ARGUED THAT IF HE WERE TO STRIKE A HIGH PROFILE HIS OBJECTIVITY WOULD BE QUESTIONABLE BOTH BECAUSE HE RAN A LARGE DATA PROCESSING BUSINESS THAT MADE MILLIONS OF DOLLARS HANDLING HEALTH CARE CLAIMS FOR STATE GOVERNMENTS AND BECAUSE THE PUBLIC GENERALLY TENDS TO DISTRUST THE VIEWS OF BIG BUSINESS MEN ON HEALTH CARE REFORM THE ADMINISTRATION IS LIKELY TO TRY TO FUEL THOSE DOUBTS IF MR. PEROT BECOMES VERY VOCAL ON THE HEALTH QUESTION THE KEY QUESTION ABOUT MR. PEROT AND HIS FOLLOWERS MAY TURN OUT TO BE HOW THEY HANDLE THE HEALTH CARE QUESTION IN THE FOUR HUNDRED THIRTY FIVE RACES FOR SEATS IN THE HOUSE THIS FALL BECAUSE OF ITS STATUS AS A TAX EXEMPT ORGANIZATION THE PEROT ORGANIZATION CAN'T ENDORSE CANDIDATES BUT MR. PEROT AND HIS FOLLOWERS MAY CHOOSE TO STAGE DEBATES AND OPEN MEETINGS AND CIRCULATE MATERIALS TO FOCUS ATTENTION ON LAWMAKERS' VIEWS AND VOTES OF WHICH THEY DISAPPROVE AT THE CLOSE OF ITS WEEKEND CONFERENCE THE UNITED WE STAND ORGANIZATION NAMED HEALTH CARE AS ONE OF ELEVEN PRIORITY ISSUES ITS MEMBERS INTEND TO FOCUS ON THIS YEAR THE CLINTON ADMINISTRATION RELEASES ITS BUDGET TODAY BASKING IN THE GLOW OF FAVORABLE NEWS COVERAGE THE ECONOMY IS GROWING THE BUDGET DEFICIT IS FALLING THE STOCK MARKET IS RISING AND INTEREST RATES REMAIN AT NEAR RECORD LOWS WHILE MANY PUNDITS ARE SWALLOWING THIS STORY HOOK LINE AND SINKER A MORE OBJECTIVE ANALYSIS INDICATES THAT MR. CLINTON'S POLICIES HAVE HINDERED THE ECONOMY'S PERFORMANCE ECONOMIC GROWTH AND JOB CREATION DESPITE RECENT UPTICKS ARE BOTH LAGGING FAR BEHIND HISTORICAL TRENDS PROJECTED BUDGET DEFICITS OF LESS THAN TWO HUNDRED BILLION DOLLARS MEANWHILE TURN OUT TO BE NOTHING MORE THAN ROSY ESTIMATES FOR FUTURE YEARS THE ADMINISTRATION MEASURES SUCCESS BY COMPARING HOW THE ECONOMY PERFORMS TODAY WITH HOW IT DID UNDER MR. BUSH WHILE THIS IS DOUBTLESSLY AN ASTUTE POLITICAL STRATEGY AND IS ALMOST SURE TO YIELD A FAVORABLE COMPARISON IT IS IRRELEVANT SINCE THE ECONOMIC POLICIES OF BOTH MR. CLINTON AND HIS PREDECESSOR ARE ALMOST IDENTICAL THE REAL QUESTION IS WHETHER MR. CLINTON'S RECORD TWO HUNDRED SIXTY TWO BILLION DOLLAR TAX INCREASE IS CAUSING THE ECONOMY TO GROW FASTER OR SLOWER THAN IT WOULD HAVE GROWN IF THE TAX BILL WAS REJECTED ARE MORE JOBS BEING CREATED AS A RESULT IF THE BUDGET DEFICIT IS REALLY FALLING SHOULD LAST YEAR'S BUDGET BILL GET THE CREDIT THE WHITE HOUSE JUSTIFIES LAST YEAR'S TAX INCREASE BY TRUMPETING PROJECTIONS SHOWING THAT THE BUDGET DEFICIT MAY SHRINK TO UNDER TWO HUNDRED BILLION DOLLARS IN NINETEEN NINETY FIVE MORE SOBER ANALYSIS SUGGESTS THE OUTLOOK MAY NOT BE SO ROSY THE NINETEEN NINETY FIVE FISCAL YEAR DOES NOT EVEN BEGIN UNTIL OCTOBER FIRST OF THIS YEAR AND HISTORY CLEARLY INDICATES THAT PROMISES OF FUTURE DEFICIT REDUCTION ARE NEBULOUS AT BEST SUPPORTERS OF THE NINETEEN NINETY BUDGET DEAL FOR INSTANCE FALSELY ALLEGED THAT THE BUDGET WOULD HAVE A SURPLUS OF MORE THAN SIXTEEN BILLION DOLLARS THIS YEAR IF MR. BUSH'S TAX INCREASE WERE ENACTED CONGRESS DUTIFULLY APPROVED THE TAX BILL YET THE BUDGET DEFICIT IS PROJECTED TO EASILY EXCEED TWO HUNDRED BILLION DOLLARS THIS YEAR SIMILARLY THE DEFICIT ROSE AFTER TAX INCREASES WERE APPROVED IN NINETEEN EIGHTY TWO NINETEEN EIGHTY FOUR AND NINETEEN EIGHTY SEVEN WITH ANY LUCK HISTORY WILL NOT REPEAT ITSELF THIS TIME AND THE DEFICIT WILL COME DOWN CONSIDERING THAT THE BUDGET DEFICIT WAS ONE HUNDRED FIFTY BILLION DOLLARS AND FALLING WHEN PRESIDENT REAGAN LEFT OFFICE MORE THAN FIVE YEARS AGO ANY PROGRESS WILL BE WELCOME NEWS TO LONG SUFFERING TAXPAYERS IT MAY BE TOO SOON HOWEVER TO BREAK OUT THE CHAMPAGNE EVEN IF THE DEFICIT DOES FALL IN NINETEEN NINETY FIVE AND NINETEEN NINETY SIX AS THE ADMINISTRATION AND THE CONGRESSIONAL BUDGET OFFICE ESTIMATE THE GOOD NEWS IS ONLY TEMPORARY ACCORDING TO THE C. B. O. THE DEFICIT BEGINS TO CLIMB RAPIDLY AFTER NINETEEN NINETY SIX BY THE YEAR TWO THOUSAND THREE THE BUDGET DEFICIT MORE THAN DOUBLES CLIMBING TO A RECORD THREE HUNDRED TWENTY FOUR BILLION DOLLARS AND WITH UNPUBLISHED ADMINISTRATION FIGURES SHOWING THAT HEALTH CARE COULD BOOST ANNUAL BUDGET DEFICITS BY NEARLY TWO HUNDRED BILLION DOLLARS BY THE TURN OF THE CENTURY THE FISCAL SITUATION COULD DETERIORATE EVEN MORE RAPIDLY THE MAJOR REASON DEFICITS ARE EXPECTED TO EXPLODE IS THE UNCONSTRAINED GROWTH OF DOMESTIC SPENDING ACCORDING TO THE C. B. O. TOTAL GOVERNMENT SPENDING WILL INCREASE BY THREE HUNDRED TWENTY EIGHT BILLION DOLLARS IN FIVE YEARS UNDER PRESIDENT CLINTON'S BUDGET AN ASTOUNDING NINETY SEVEN POINT THREE PERCENT OF THAT INCREASE IS DUE TO HIGHER DOMESTIC SPENDING INDEED THE C. B. O. PROJECTS THAT DOMESTIC SPENDING WILL GROW MORE THAN NINETY ONE PERCENT FASTER THAN NEEDED TO KEEP PACE WITH INFLATION THIS VERITABLE ORGY OF NEW SPENDING EXPOSES THE FAILURE TO IMPOSE ANY SPENDING DISCIPLINE IN LAST YEAR'S BUDGET DEAL WASHINGTON BASED INTEREST GROUPS OFTEN PERSUADE REPORTERS TO WRITE ABOUT TIGHT SPENDING CAPS BUT THE CAPS DO NOT APPLY TO ENTITLEMENT PROGRAMS AND SO CALLED DOMESTIC DISCRETIONARY PROGRAMS ARE GROWING THANKS TO UNPRECEDENTED RAIDS ON THE DEFENSE BUDGET IN ADDITION TO PAINTING A ROSY PICTURE OF THE BUDGET DEFICIT THE ADMINISTRATION ALSO TALKS AS IF THE ECONOMY WERE BOOMING UNFORTUNATELY THE NUMBERS DO NOT ADD UP THE ECONOMY DID GROW AT AN ANNUAL RATE OF FIVE POINT NINE PERCENT IN THE LAST THREE MONTHS OF NINETEEN NINETY THREE BUT EVEN WITH THIS LATE SURGE GROWTH FOR THE YEAR WAS JUST TWO POINT EIGHT PERCENT REPUBLICANS AND DEMOCRATS ARE ARGUING WHETHER THIS MEANS MR. CLINTON'S FIRST YEAR WAS BETTER THAN MR. BUSH'S LAST YEAR BUT BOTH ARE MISSING THE POINT THE LEVEL OF GROWTH IN BOTH NINETEEN NINETY TWO AND NINETEEN NINETY THREE WAS FAR FROM ROBUST THE ECONOMY'S PERFORMANCE TODAY IS PARTICULARLY DISCOURAGING SINCE ECONOMIC GROWTH FOLLOWING A RECESSION IS NORMALLY WELL ABOVE THE HISTORICAL AVERAGE AVERAGING MORE THAN FIVE PERCENT A YEAR YET GROWTH IN MR. BUSH'S LAST YEAR AND MR. CLINTON'S FIRST YEAR HAS FAILED TO EVEN REACH THE LONG TERM AVERAGE OF THREE PERCENT INDEED AN ANALYSIS OF ECONOMIC GROWTH RATES ELEVEN QUARTERS INTO A RECOVERY WHICH IS HOW LONG THE CURRENT QUOTE EXPANSION QUOTE HAS LASTED SHOWS THAT GROWTH HAS BEEN BARELY HALF THE LEVEL EXPERIENCED DURING PAST EXPANSIONS THE SAME ANALYSIS APPLIES TO THE JOB MARKET AT THIS STAGE IN AN ECONOMIC EXPANSION THIRTY THREE MONTHS AFTER THE NADIR OF THE RECESSION TOTAL EMPLOYMENT TRADITIONALLY HAS INCREASED BY AN AVERAGE OF NINE POINT TWO PERCENT EVEN INCLUDING THE ONE POINT SIX MILLION JOBS CREATED LAST YEAR TOTAL EMPLOYMENT HAS CLIMBED BY JUST TWO POINT FIVE PERCENT SINCE THE BOTTOM OF THE RECESSION FAR BELOW THE AVERAGE THE ADMINISTRATION ALSO IS TRYING TO TAKE CREDIT FOR LOW INTEREST RATES ACCORDING TO THE WHITE HOUSE LAST YEAR'S RECORD TAX INCREASE CONVINCED FINANCIAL MARKETS THAT WASHINGTON WAS FINALLY SERIOUS ABOUT DEFICIT REDUCTION WHILE THE ADMINISTRATION'S POLITICAL STRATEGY IS SOUND ITS ECONOMIC ANALYSIS IS NOT INTEREST RATES HAVE BEEN FALLING STEADILY SINCE NINETEEN EIGHTY NINE MOREOVER INTEREST RATES DURING THAT TIME FELL EVEN THOUGH THE BUDGET DEFICIT WAS NEARLY DOUBLING THE FEDERAL RESERVE BOARD'S ANTI INFLATION POLICY UNDER ALAN GREENSPAN'S LEADERSHIP IS THE REAL REASON INTEREST RATES ARE AT NEAR RECORD LOWS THE ECONOMIC AND BUDGET OUTLOOK AFTER THE PRESIDENT'S FIRST YEAR IN OFFICE LEAVES MUCH TO BE DESIRED MR. CLINTON CAMPAIGNED AS THE CANDIDATE OF CHANGE BUT HE HAS FAILED TO REVERSE MR. BUSH'S DISASTROUS TAX AND SPEND POLICIES INSTEAD HE COMPOUNDED THE DAMAGE BY IMPOSING A RECORD TAX INCREASE OF HIS OWN THE ECONOMY'S CONTINUED SLOW GROWTH AND ANEMIC LEVELS OF JOB CREATION ARE A DIRECT RESULT MR. MITCHELL IS A FELLOW AT THE HERITAGE FOUNDATION IN WASHINGTON DONALD R. CONKLIN PRESIDENT OF SCHERING PLOUGH PHARMACEUTICALS A UNIT OF SCHERING PLOUGH CORPORATION AND BARRY M. BLOOM RETIRED EXECUTIVE VICE PRESIDENT FOR RESEARCH AT PFIZER INCORPORATED WERE NAMED DIRECTORS OF THIS BIOTECHNOLOGY COMPANY MR. CONKLIN IS ALSO A DIRECTOR OF SCHERING THE NEW APPOINTMENTS BY VERTEX INCREASE THE SIZE OF ITS BOARD TO SEVEN DIRECTORS RALSTON PURINA COMPANY PLANS TO HOLD THE LINE ON PRICES FOR ITS PET FOODS AND BAKED GOODS BUT ANTICIPATES TEMPORARILY LOWER EARNINGS AS IT FIGHTS TO MAINTAIN MARKET SHARE IN THOSE CATEGORIES THE NATION'S LARGEST MAKER OF PET FOODS AND BAKED GOODS RALSTON SAID IT IS UNDERTAKING COMPREHENSIVE COST REDUCTION EFFORTS THAT EVENTUALLY SHOULD IMPROVE PROFITABILITY IN THOSE BUSINESSES AS WELL AS IN ITS READY TO EAT CEREAL OPERATION THE LARGEST U. S. MAKER OF PRIVATE LABEL CEREALS RALSTON'S SENIOR MANAGEMENT ALSO SAID THE COMPANY'S PENDING SPINOFF OF ITS CEREAL BABY FOOD CRACKERS AND SKI RESORTS BUSINESSES SHOULD ENHANCE OPERATIONS FOR BOTH THAT GROUP TO BE CALLED RALCORP HOLDINGS AS WELL AS FOR PET FOODS CURRENTLY THERE IS QUOTE NEGATIVE SYNERGY QUOTE BETWEEN THOSE BUSINESSES ONE EXECUTIVE SAID SETTING A SOBER TONE FOR THE COMPANY'S CENTENNIAL CELEBRATION ANNUAL MEETING LAST THURSDAY WILLIAM P. STIRITZ CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID RALSTON FINDS ITSELF IN A DIFFICULT AND DYNAMIC OPERATING ENVIRONMENT WHERE ALL THE COMPANY'S BUSINESSES FACE EXTREMELY COMPETITIVE CHALLENGERS AND IN SOME CASES FLAT TO DECLINING CONSUMPTION PATTERNS FOR ITS FISCAL FIRST QUARTER ENDED DECEMBER THIRTY FIRST RALSTON REPORTED EARNINGS OF ONE HUNDRED THIRTY THREE POINT SEVEN MILLION DOLLARS COMPARED WITH A YEAR AGO LOSS OF EIGHTY ONE POINT FOUR MILLION DOLLARS AFTER ACCOUNTING CHARGES ON A ONE PERCENT SALES INCREASE TO TWO POINT TWO BILLION DOLLARS RALSTON NO LONGER REPORTS PER SHARE EARNINGS AFTER SPLITTING ITS BUSINESSES INTO TWO OPERATING GROUPS LAST SUMMER ITS RALSTON PURINA GROUP WHICH INCLUDES PET AND HUMAN FOODS REPORTED EARNINGS OF ONE HUNDRED THIRTY THREE POINT FOUR MILLION DOLLARS OR ONE DOLLAR AND TWENTY SEVEN CENTS A SHARE COMPARED WITH PRO FORMA EARNINGS BEFORE SPECIAL ITEMS OF NINETY POINT SEVEN MILLION DOLLARS OR EIGHTY TWO CENTS A SHARE SALES ROSE TO ONE POINT SEVEN TWO BILLION DOLLARS FROM ONE POINT SIX NINE BILLION DOLLARS THE CONTINENTAL BAKING GROUP UNIT REPORTED QUARTERLY EARNINGS OF TWO HUNDRED THOUSAND DOLLARS BUT A PER SHARE LOSS OF ONE CENT A SHARE ON A TWO POINT SIX PERCENT SALES DECLINE TO FOUR HUNDRED SEVENTY SIX MILLION DOLLARS A YEAR AGO THE GROUP REPORTED PRO FORMA EARNINGS BEFORE ITEMS OF THREE POINT FIVE MILLION DOLLARS OR EIGHT CENTS A SHARE ACCORDINGLY CONTINENTAL DIRECTORS SUSPENDED THE COMPANY'S EIGHT CENT A SHARE QUARTERLY DIVIDEND PET FOODS HAS EXPERIENCED LOWER OPERATING EARNINGS IN THE PAST TWO YEARS AND THE COMPANY SAID IT IS BUDGETING FOR EARNINGS DECLINES IN THE CURRENT FISCAL YEAR AS WELL LARGELY BECAUSE OF HIGHER RAW MATERIALS COSTS WHICH WE HAVE ELECTED NOT TO OFFSET BY PRICE INCREASES AT THE SAME TIME PET FOOD ADVERTISING WILL BE INCREASED THIRTY PERCENT TO STIMULATE SALES THE COMPANY SAID STILL IT EXPECTS VOLUMES TO BE MARGINALLY BELOW A YEAR AGO W. PATRICK MCGINNIS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RALSTON'S GROCERY PRODUCTS GROUP TOLD ANALYSTS AFTER THE ANNUAL MEETING THAT THE COMPANY BELIEVES HIGHER COMMODITY COSTS FOR PET FOODS IS AN ABERRATION SO IT'S BETTER OFF NOT TO TAKE PRICE INCREASES THAT COULD IMPACT VOLUMES THE COMPANY ALSO DISCLOSED FOR THE FIRST TIME THAT U. S. PET FOODS REAPED OPERATING PROFIT OF THREE HUNDRED TEN MILLION DOLLARS IN THE FISCAL YEAR ENDED LAST SEPTEMBER THIRTIETH WHILE ITS EVEREADY BATTERY COMPANY UNIT REPORTED OPERATING EARNINGS OF TWO HUNDRED FIFTY MILLION DOLLARS THERE WERE NO PRIOR YEAR FIGURES FOR COMPARISON RALSTON PURINA'S BIGGEST PROBLEMS ARE AT ITS BAKING GROUP WHICH FINDS ITSELF IN A LOW GROWTH INDUSTRY FACING HIGH FIXED COSTS AND SIGNIFICANT EXCESS CAPACITY THE COMPANY SAID TO MAINTAIN MARKET SHARE BREAD PRICES WILL BE HELD AT FULLY COMPETITIVE LEVELS JAY W. BROWN CONTINENTAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID COMPETITORS' PRICE DISCOUNT PROMOTIONS WILL BE MATCHED COMPLETELY AS NEEDED TO PROTECT VOLUMES MOREOVER THERE WILL BE NO BROAD SCALE SNACK CAKE PRICE INCREASES IN THE NEAR FUTURE HE SAID TO STIMULATE BUSINESS CONTINENTAL HAS SIGNIFICANTLY INCREASED PROMOTIONAL SPENDING THEREBY QUOTE SEVERELY QUOTE DAMAGING PROFIT MARGINS MESA INCORPORATED SAID IT EXPECTS NATURAL GAS PRODUCTION FROM THE HUGOTON FIELD IN SOUTHWEST KANSAS TO INCREASE BY FIFTEEN BILLION TO TWENTY BILLION CUBIC FEET OVER THE NEXT THREE YEARS BECAUSE OF CHANGES BY KANSAS REGULATORS FOR THIS YEAR MESA SAID IT PROJECTS PRODUCTION WILL EXCEED SEVENTY BILLION CUBIC FEET OF EQUIVALENT NATURAL GAS COMPARED WITH FIFTY SEVEN BILLION LAST YEAR WITH MORE THAN HALF OF IT ATTRIBUTABLE TO THE REGULATORY CHANGES THE KANSAS CORPORATION COMMISSION RECENTLY APPROVED REVISIONS THAT PERMIT GAS PRODUCERS WITH SECOND QUOTE INFILL QUOTE WELLS TO PUMP THIRTY PERCENT MORE GAS THAN THOSE WHO DON'T HAVE SUCH WELLS MESA HAS MORE THAN THREE HUNDRED EIGHTY ONE INFILL WELLS IN THE HUGOTON FIELD MORE THAN ANY OTHER PRODUCER THERE SALES OF IMPORTED CARS TRUCKS AND BUSES IN JAPAN JUMPED THIRTY FOUR PERCENT IN JANUARY TO TWELVE THOUSAND ONE HUNDRED FIFTY SIX UNITS FROM A YEAR EARLIER THE JAPAN AUTOMOBILE IMPORTERS' ASSOCIATION REPORTED A SPOKESMAN FOR THE ASSOCIATION SAID THE SALES FIGURE FOR JANUARY WAS THE LARGEST EVER FOR IMPORTED CARS BY ORIGIN SALES OF VEHICLES FROM EVERY MAJOR EXPORTER EXCEPT FRANCE INCREASED HE ATTRIBUTED THE SHARP YEAR ON YEAR INCREASE MOSTLY TO PRICE CUTS BY MANY MAKERS REFLECTING THE APPRECIATION OF THE YEN AGAINST THE U. S. DOLLAR AND OTHER CURRENCIES THE INTRODUCTION OF NEW MODELS FOR NINETEEN NINETY FOUR ALSO CONTRIBUTED TO THE RESULTS SALES OF CARS MADE BY OVERSEAS SUBSIDIARIES OF JAPANESE AUTO MAKERS FELL FORTY TWO PERCENT TO ONE THOUSAND FIFTY SIX UNITS CARS MADE BY CHRYSLER CORPORATION SHOWED A PARTICULARLY STEEP INCREASE HELPED BY JEEP CHEROKEE SALES SALES OF GERMANY'S MERCEDES BENZ CARS ROSE FIFTY TWO PERCENT TO ONE THOUSAND NINE HUNDRED FOURTEEN UNITS FOLLOWING THE INTRODUCTION IN OCTOBER OF THE C. CLASS ENTRY MODEL THE INTERNATIONAL ENERGY AGENCY IN ITS FIRST BULLISH NOTE FOR OIL MARKETS IN MONTHS REVISED UPWARD ITS FORECAST OF WORLD PETROLEUM DEMAND FOR THE FIRST QUARTER THE PARIS BASED AGENCY NOW ESTIMATES FIRST QUARTER OIL DEMAND WILL AVERAGE SIXTY EIGHT POINT SEVEN MILLION BARRELS A DAY THAT IS SHARPLY HIGHER THAN OIL CONSUMPTION OF SIXTY EIGHT POINT THREE MILLION BARRELS A DAY IN THE YEAR EARLIER PERIOD AND ALSO IS TWO HUNDRED THOUSAND BARRELS A DAY MORE THAN THE I. E. A. WAS FORECASTING ONLY A MONTH AGO FOR THE CURRENT QUARTER AN AFFILIATE OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT THE I. E. A. MONITORS WORLD ENERGY DEVELOPMENTS FOR WESTERN OIL CONSUMING NATIONS ITS ESTIMATES ARE USED FOR PLANNING PURPOSES BY BOTH OIL CONSUMING AND OIL PRODUCING NATIONS AND CAN HAVE A SIGNIFICANT IMPACT ON WORLD MARKETS OIL PRICES HAD PLUNGED BELOW FOURTEEN DOLLARS A BARREL TO FIVE YEAR LOWS LATE LAST YEAR AFTER NUMEROUS DOWNWARD REVISIONS IN THE I. E. A.'S FORECASTS OF NINETEEN NINETY THREE WORLD OIL DEMAND AND THE LATE NOVEMBER REFUSAL OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO CUT OUTPUT HELPED BY THE DRAIN ON SUPPLIES FROM THE FRIGID WEATHER GRIPPING MUCH OF THE U. S. PETROLEUM PRICES HAVE RECOVERED SOMEWHAT SO FAR THIS YEAR RISING LAST WEEK TO THE HIGHEST LEVEL SINCE LATE NOVEMBER BUT ON FRIDAY CRUDE OIL PRICES DECLINED AGAIN DESPITE THE UPBEAT I. E. A. REPORT ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR MARCH DELIVERY FELL TWENTY SIX CENTS TO SETTLE AT FIFTEEN DOLLARS AND SIXTY THREE CENTS A BARREL IN ITS MONTHLY OIL MARKET REPORT RELEASED FRIDAY THE I. E. A. CITED ABNORMALLY COLD WEATHER IN THE U. S. AS WELL AS QUOTE UNEXPECTEDLY STRONG DELIVERIES QUOTE OF FUELS IN JAPAN AMONG REASONS FOR THE UPWARD DEMAND REVISIONS THE AGENCY NOTED IT ALSO INCREASED RETROACTIVELY PRIOR ESTIMATES OF OIL USE IN THE NINETEEN NINETY THREE FOURTH QUARTER BUT THE I. E. A. REDUCED SLIGHTLY THE EARLIER ESTIMATES OF WORLD OIL DEMAND FOR THE FINAL THREE QUARTERS OF NINETEEN NINETY FOUR THAT LEFT UNCHANGED ITS PREVIOUS PROJECTION OF SIXTY SEVEN POINT SIX MILLION BARRELS FOR THE ENTIRE YEAR ON THE SUPPLY SIDE THE I. E. A. SAID OPEC'S JANUARY CRUDE OIL OUTPUT REMAINED IN A RANGE BETWEEN TWENTY FOUR POINT SEVEN MILLION AND TWENTY FOUR POINT EIGHT MILLION BARRELS A DAY FOR THE THIRD CONSECUTIVE MONTH THAT IS HIGHER THAN THE PRODUCTION CEILING OF TWENTY FOUR POINT FIVE MILLION BARRELS A DAY BUT IS IN LINE WITH REQUIREMENTS FOR OPEC'S OIL AS INDICATED BY THE I. E. A. FIGURES ALTHOUGH THE I. E. A. TAKES INTO ACCOUNT PAST PRODUCTION IT DOESN'T FORECAST FUTURE OPEC OUTPUT BUT THE I. E. A.'S LATEST ASSESSMENTS OF WORLD OIL USE IMPLY THAT MUCH MORE OPEC OIL IS NEEDED DURING THE CURRENT QUARTER THAN INDICATED BY EARLIER DEMAND ESTIMATES BASED ON THE I. E. A. REPORT TWENTY FIVE POINT FIVE MILLION BARRELS A DAY OF CRUDE OIL WILL BE REQUIRED FROM OPEC AND FROM WITHDRAWALS FROM WORLD INVENTORIES FOR THE NINETEEN NINETY FOUR FIRST QUARTER FOR THE SEASONALLY WEAK SECOND QUARTER HOWEVER THE I. E. A.'S FIGURES SUGGEST THAT THE NEED FOR OPEC OIL EVEN ASSUMING NO WITHDRAWALS FROM INVENTORIES WOULD DROP TO TWENTY THREE POINT THREE MILLION BARRELS A DAY NORMALLY OIL COMPANIES DRAW DOWN THEIR INVENTORIES DURING THE PEAK DEMAND PERIOD OF WINTER AND THEN REBUILD THEM IN THE SECOND AND THIRD QUARTERS THE FEDERAL RESERVE IS TRYING TO SCARE INFLATION AWAY BUT WILL IT WORK THAT'S THE QUESTION ECONOMISTS AND BOND INVESTORS ARE PONDERING IN THE WAKE OF THE FED'S DECISION FRIDAY TO RAISE SHORT TERM INTEREST RATES FOR THE FIRST TIME IN NEARLY FIVE YEARS BECAUSE THE FED BARELY NUDGED UP THE RATE AT WHICH BANKS LEND EACH OTHER MONEY TO THREE POINT TWO FIVE PERCENT FROM THREE PERCENT THERE WON'T BE ANY SIGNIFICANT IMPACT ON THE ECONOMY MOST ECONOMISTS AGREE THEY SAY THE FED IS WAGING A PSYCHOLOGICAL WAR BY JUMPING IN BEFORE PRICE INFLATION HAS EVEN BEGUN TO ACCELERATE THE FED IS TRYING TO CONVINCE INVESTORS THAT IT QUOTE ISN'T ASLEEP AT THE WHEEL AS SOME CRITICS HAVE BEEN SAYING RECENTLY QUOTE SAID ROBERT GIORDANO DIRECTOR OF ECONOMIC RESEARCH AT GOLDMAN SACHS BOND INVESTORS FEAR INFLATION BECAUSE IT MEANS A FIXED INCOME BUYS LESS AT THE GROCERY STORE A CASE CAN BE MADE THAT THE FED'S PRE EMPTIVE STRIKE WILL BE GOOD FOR BOND PRICES BUT ON FRIDAY INVESTORS RECOILED THE PRICE OF THE BENCHMARK THIRTY YEAR BOND SANK FIVE EIGHTHS POINT OR SIX DOLLARS AND TWENTY FIVE CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR VALUE THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF PRICE ROSE TO SIX POINT THREE FIVE PERCENT FROM SIX POINT THREE ONE PERCENT ON THURSDAY TREASURYS WITH SHORTER MATURITIES WERE EVEN HARDER HIT THE BOND EQUIVALENT YIELD ON THE SIX MONTH BILL FOR EXAMPLE JUMPED MORE THAN ZERO POINT ONE ONE PERCENTAGE POINT TO THREE POINT FOUR SEVEN PERCENT THE HIGHEST LEVEL IN NEARLY FOURTEEN MONTHS IF THE FED SUCCEEDS IN REDUCING INFLATION FEARS LONG TERM BOND YIELDS COULD DROP ONCE AGAIN PERHAPS EVEN AS LOW AS FIVE POINT FIVE PERCENT SAYS MR. GIORDANO BUT EVEN HE SAYS THAT THIS MOVE WOULD BE TEMPORARY MORE LIKELY IS THAT LONG TERM YIELDS WILL BE LITTLE CHANGED OR PERHAPS SLIGHTLY HIGHER BY THE END OF THIS YEAR SAYS WILLIAM GROSS A MANAGING DIRECTOR AT PACIFIC INVESTMENT MANAGEMENT OF NEWPORT BEACH CALIFORNIA MR. GROSS IS ONE OF THE NATION'S MOST CLOSELY WATCHED AND RESPECTED BOND FUND MANAGERS BECAUSE OF THE HUGE AMOUNT OF BOND ASSETS HIS FIRM CONTROLS OVER FORTY BILLION DOLLARS AND HIS SUCCESSES THROUGH BULL AND BEAR MARKETS THE FED'S DECISION TO RAISE RATES PROBABLY SIGNALS AN END TO THE BULL BOND MARKET OF RECENT YEARS SAYS MR. GROSS THIS WAS PROBABLY THE OFFICIAL SEAL THAT SIGNALS THE GOOD TIMES ARE OVER HE ADDS AT THIS STAGE IN AN ECONOMIC RECOVERY AND WITH THE FED RAISING SHORT TERM INTEREST RATES IT WOULD BE VERY UNUSUAL FOR LONG TERM BOND YIELDS TO DROP VERY MUCH SAYS MR. GROSS WHAT'S MORE LIKELY IS THAT SHORT TERM RATES WILL GO UP A LOT AND LONG TERM RATES WILL GO UP LESS OR CHANGE LITTLE HE SAYS LONG TERM YIELDS ARE CRUCIAL FOR EVERYONE FROM HOMEOWNERS TO BUSINESSES THAT NEED TO BORROW THERE IS LITTLE DISAGREEMENT ON WHERE SHORT TERM INTEREST RATES WILL BE GOING OVER THE NEXT YEAR UP THE ONLY QUESTION IS HOW FAR THEY WILL RISE AND HOW FAST MR. GIORDANO EXPECTS A RISE IN THE SO CALLED FEDERAL FUNDS RATE AT WHICH BANKS LEND EACH OTHER MONEY OF ONE QUARTER TO ONE HALF POINT OVER THE NEXT YEAR WHILE MR. GROSS SAYS THE RISE COULD BE ONE HALF TO THREE QUARTERS POINT THE FEDERAL FUNDS RATE IS WHAT THE FED BOOSTED FRIDAY THE FED'S HIGHLY UNUSUAL ANNOUNCEMENT OF ITS INTENTION TO INCREASE SLIGHTLY THE DEGREE OF PRESSURE ON RESERVE POSITIONS AND BOOST THE FEDERAL FUNDS RATE WAS PARTLY A RESPONSE TO INVESTOR CONFUSION AND PARTLY A RESPONSE TO RECENT DEMANDS BY MEMBERS OF CONGRESS FOR MORE DISCLOSURE OF FED ACTIVITY ON THURSDAY THE FED FAILED TO INJECT MORE RESERVES INTO THE BANKING SYSTEM AS HAD BEEN EXPECTED AND ALLOWED THE FUNDS RATE TO RISE SLIGHTLY BUT IT WASN'T CLEAR WHETHER THE FED WAS ACTUALLY TIGHTENING SINCE THE RATE INCREASE WAS SO SLIGHT FRIDAY'S ANNOUNCEMENT HELPED CLEAR THE AIR LATER IN THE DAY A FED SPOKESMAN SAID THAT THE ANNOUNCEMENT WASN'T A PRECEDENT AND INVESTORS SHOULDN'T EXPECT THE FED TO CONTINUE SUCH SIGNALLING STILL INVESTORS FOUND SOMETHING ELSE TO FRET ABOUT FRIDAY HOW FAR DOES THE FED PLAN TO PUSH UP RATES BEFORE IT'S SATISFIED THAT INFLATIONARY PRESSURES HAVE BEEN ELIMINATED THE LAST TIME THE FED STARTED TO RAISE INTEREST RATES WAS IN THE LATE NINETEEN EIGHTIES AFTER INFLATION HAD ALREADY STARTED TO RISE IN ORDER TO MAKE UP FOR ITS TARDINESS IN RESPONDING THE FED HAD TO MOVE QUICKLY AND FAR BETWEEN MARCH NINETEEN EIGHTY EIGHT AND MARCH NINETEEN EIGHTY NINE THE MONTHLY AVERAGE OF THE FEDERAL FUNDS RATE JUMPED MORE THAN THREE POINT TWO FIVE PERCENTAGE POINTS BUT WITH THE FED APPEARING TO BE AHEAD OF THE CURVE THIS TIME AROUND ECONOMISTS DON'T BELIEVE THAT SCENARIO IS LIKELY TO BE REPEATED THE FED IS VERY SENSITIVE TO SHIFTS IN EXPECTATIONS BECAUSE IT NEEDS TO MAINTAIN ITS CREDIBILITY SAYS MR. GIORDANO QUOTE THAT HAD A LOT TO DO WITH GOING AHEAD NOW QUOTE AND RAISING RATES QUOTE RATHER THAN WAITING A FEW MORE MONTHS QUOTE HE EXPLAINS BUT INVESTORS WEREN'T CONVINCED THAT GRADUALISM WOULD BE ALAN GREENSPAN'S PLAN ACCORDING TO THE TRADING FOLLOWED BY GOVPX INCORPORATED WHICH TRACKS THE TRADING OF TREASURYS VOLUME REACHED ONE HUNDRED TWENTY THREE BILLION DOLLARS ON FRIDAY THE HIGHEST SINCE GOVPX STARTED KEEPING TRACK OF VOLUME IN NINETEEN NINETY ONE THE SECOND HIGHEST VOLUME DAY WAS THURSDAY AT ONE HUNDRED FOUR BILLION DOLLARS GOVPX OWNED BY A GROUP OF PRIMARY DEALERS IN THE TREASURY MARKET ESTIMATES THAT ITS NUMBERS COVER ABOUT SIXTY FIVE PERCENT OF TRADING VOLUME IT WOULD BE TOO MUCH TO THINK THAT THE MARKET'S RESPONSE TODAY WOULD BE IN ANY WAY DEFINITIVE SAYS JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS THIS HAS TO BE VIEWED AS THE FIRST STEP ON A JOURNEY THAT IS GOING TO LAST SOME TIME HE EXPLAINED THE FED'S TASK IF IT IS SERIOUS ABOUT REACHING ITS GOAL OF PRICE STABILITY IMPLIES THAT ECONOMIC GROWTH WILL HAVE TO DECELERATE OVER THE COMING YEAR OR SO TO ABOUT A TWO POINT FIVE PERCENT ANNUAL RATE AS MEASURED BY THE GROSS DOMESTIC PRODUCT BUT OVER THE NEXT FEW MONTHS THE ECONOMIC DATA THAT WILL BE RELEASED AREN'T LIKELY TO BE FRIENDLY TO LONG TERM INTEREST RATES MR. LIPSKY SAYS HE BELIEVES THE ECONOMIC DATA WILL CONTINUE TO TEST THE FED'S RESOLVE TO PUT OUT AN INFLATION SPARK BEFORE IT TURNS INTO A FIRE AS A RESULT QUOTE OVER THE NEXT FEW MONTHS EXPECT TO SEE THE FED UNDERTAKING ADDITIONAL TIGHTENING QUOTE MEASURES THE GOOD NEWS FOR INVESTORS IS THAT IF THE FED IS SUCCESSFUL LATER THIS YEAR WE SHOULD ACHIEVE A COMBINATION OF MODERATING ECONOMIC GROWTH STABLE INFLATION TIGHTENING FISCAL AND MONETARY POLICY AND WEAK ECONOMIC GROWTH ABROAD THE RESULT COULD BE A RETURN TO LOWER LONG TERM INTEREST RATES SAYS MR. LIPSKY IN THE RANGE OF FIVE POINT FIVE PERCENT TO SIX PERCENT MR. GIORDANO ALSO SAYS GRADUALISM WILL BE THE PATH THAT THE FED TAKES THE SITUATION IS VERY DIFFERENT FROM NINETEEN EIGHTY EIGHT AND NINETEEN EIGHTY NINE SAYS MR. GIORDANO BECAUSE AT THAT TIME THE ECONOMY WAS AT VIRTUALLY FULL EMPLOYMENT AND THE FED WAS BEHIND THE CURVE IN GETTING RATES HIGHER TO RESTRAIN INFLATION BUT THE KEY TO ALLOWING INFLATIONARY PRESSURES TO EASE WHILE REFRAINING FROM STARTLING THE FINANCIAL MARKETS IS WHETHER THE FED IS ANY GOOD AT PLAYING THERAPIST TO THE MILLIONS OF STOCK AND BOND INVESTORS WITH FRAYED NERVES IF THE MARKET CONCLUDES THAT THE FEDERAL RESERVE IS IN FACT A STEP BEHIND INFLATION INSTEAD OF A STEP AHEAD LONG TERM RATES COULD RISE SHARPLY SAYS MR. GIORDANO THE FEDERAL RESERVE'S MOVE TO TIGHTEN CREDIT AND TO PUBLICLY STATE THAT IT HAD DONE SO FRIDAY KNOCKED DOWN THE PRICES OF SECURITIES IN THE MORTGAGE CORPORATE AND MUNICIPAL MARKETS AS WELL THE POLICY CHANGE AND THE STATEMENT CONFIRMING IT UNNERVED MARKET PLAYERS AND LED TO CHAOTIC TRADING THE TIGHTENING CAME ABOUT THREE HOURS AFTER A WEAKER THAN EXPECTED JANUARY EMPLOYMENT REPORT HAD SQUELCHED EXPECTATIONS THAT ANY POLICY CHANGE WAS IMMINENT IT WAS HECTIC AND EXTREMELY VOLATILE PARTICULARLY AT THE LONG END OF TREASURY SECURITIES SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS FRIDAY'S SESSION BEGAN AMID EXPECTATIONS THAT A POLICY TIGHTENING WAS LIKELY SHOULD THE GOVERNMENT REPORT A LARGE JUMP IN MONTHLY NONFARM PAYROLLS FOR JANUARY BUT THE LABOR DEPARTMENT SAID NONFARM PAYROLL EMPLOYMENT ROSE JUST SIXTY TWO THOUSAND DURING JANUARY WELL BELOW FORECASTS CENTERING ON A GAIN OF ABOUT TWO HUNDRED THOUSAND IN RESPONSE THE MARKET SURGED AS PLAYERS SCRAMBLED TO BUY BACK SECURITIES THEY HAD SOLD THURSDAY HOWEVER THOSE HIGHER LEVELS MERELY BROUGHT IN FRESH SELLING BY TRADERS LOOKING TO GET OUT OF LONG POSITIONS BY MID MORNING THE MARKET HAD ERASED ALL OF ITS EARLY GAINS THE COUP DE GRACE FOR THE MARKET CAME WHEN THE FED ANNOUNCED SHORTLY AFTER ELEVEN A. M. E. S. T. THAT IT HAD IN FACT DECIDED TO PUSH SHORT TERM RATES SLIGHTLY HIGHER PRICES PLUNGED SOON AFTER ALSO TO BLAME FOR THE LONG END TROUBLES WERE CONCERNS ABOUT NEXT WEEK'S REFUNDING AUCTIONS AS WELL AS INFLATION FIGURES SCHEDULED TO BE RELEASED THIS WEEK THE THREE YEAR NOTE SLATED TO BE AUCTIONED TOMORROW YIELDED FOUR POINT SEVEN SIX PERCENT LATE FRIDAY IN WHEN ISSUED TRADING WHILE THE TEN YEAR NOTE TO BE AUCTIONED WEDNESDAY YIELDED FIVE POINT EIGHT FIVE PERCENT AND THE THIRTY YEAR BOND YIELDED SIX POINT THREE SEVEN PERCENT IN MORTGAGE SECURITIES AS IN SOME OTHER MARKETS THE FED'S MOVE MAY HAVE DRAMATICALLY ALTERED PROSPECTS A MAJOR CONSEQUENCE IS THAT LONG TERM INTEREST RATES AREN'T SEEN LIKELY TO DECLINE MUCH REDUCING THE LIKELIHOOD THAT MORTGAGE RATES COULD DROP ENOUGH TO SPUR ANOTHER BURST OF HOME MORTGAGE REFINANCINGS THIS WOULD SIGNIFICANTLY REDUCE THE RISK OF PREPAYMENTS ON MORTGAGE SECURITIES PREPAYMENTS ARE GOING TO BE SLOW SLOW SLOW SAYS DALE WESTHOFF VICE PRESIDENT OF THE MORTGAGE RESEARCH DEPARTMENT AT BEAR STEARNS HE HAD ALREADY BEEN CALLING FOR A PREPAYMENT SLOWDOWN BUT FRIDAY'S EVENTS LED HIM TO REVISE HIS ESTIMATES DOWN EVEN FURTHER QUOTE THE PROBABILITY IS LESS THAT WE'RE GOING TO BE HITTING NEW LOWS IN MORTGAGE RATES QUOTE SO A RENEWED REFINANCING BOOM WON'T LIKELY OCCUR HE ADDS MUNICIPAL BOND PRICES DROPPED AS MUCH AS FIVE EIGHTHS POINT HARRIS COUNTY TEXAS'S FIVE POINT OH OH PERCENT COUPON BONDS DUE TWO THOUSAND SIXTEEN FINISHED ONE HALF POINT LOWER AT NINETY FIVE AND ONE HALF TO YIELD FIVE POINT THREE ONE PERCENT COMPARED WITH FIVE POINT TWO SEVEN PERCENT ON THURSDAY THE FED'S TIGHTENING MAY CAUSE SOME ISSUERS TO MOVE UP THE PRICINGS OF THEIR OFFERINGS MUNI SPECIALISTS SAY EARTHQUAKES AND OTHER NATURAL DISASTERS ARE INCREASINGLY SPAWNING A FORMIDABLE AFTERSHOCK LAWSUITS ALTHOUGH SO CALLED ACTS OF GOD CERTAINLY CAN'T BE BLAMED ON HUMAN NEGLIGENCE LAWYERS SAY THAT THE RESULTING PROPERTY DAMAGE AND INJURIES OFTEN CAN LEAD TO LEGAL FINGERPOINTING QUOTE ACTS OF GOD CAN BE ANTICIPATED QUOTE SAID PHILIP H. CORBOY A LEADING CHICAGO PERSONAL INJURY LAWYER AND FORMER CHAIRMAN OF THE AMERICAN BAR ASSOCIATION'S LITIGATION SECTION YOU DON'T BUILD PAPIER MACHE HOUSES IN SAN FRANCISCO FOR EXAMPLE YOU CAN BE RESPONSIBLE NOT FOR THE ACT OF GOD BUT FOR PROTECTING FROM THE ACT OF GOD UNTIL RECENTLY BIG EARTHQUAKES RARELY RESULTED IN LAWSUITS SAID GARY T. SCHWARTZ A LAW PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES WHO HAS STUDIED THE SUBJECT ONLY WITH MODERN CHANGES IN LIABILITY LAW AND PUBLIC LITIGIOUSNESS HAVE SUCH SUITS BECOME MORE COMMON PROFESSOR SCHWARTZ ADDED THE SAN FRANCISCO EARTHQUAKE OF NINETEEN EIGHTY NINE SPAWNED AT LEAST THREE HUNDRED THIRTY LAWSUITS BY DRIVERS ALLEGING THAT ROADS AND BRIDGES SHOULD HAVE BEEN STURDIER THE CASES WERE RESOLVED THROUGH A MASS SETTLEMENT IN WHICH THE STATE PAID SIXTY NINE MILLION DOLLARS TO THE PLAINTIFFS THE ONE REMAINING SUIT BY A WOMAN WHO SAYS SHE HAS A PERMANENTLY FRACTURED LEG AND SEVERE POST TRAUMATIC STRESS DISORDER IS SCHEDULED TO GO TO TRIAL IN MAY ALTHOUGH IT'S STILL TOO EARLY TO SPOT LITIGATION STEMMING FROM THE RECENT LOS ANGELES EARTHQUAKE THE LARGE NUMBER OF INSURANCE CLAIMS FILED SUGGESTS THAT LAWSUITS WILL BE PLENTIFUL THE STATE'S LARGEST INSURER STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY BLOOMINGTON ILLINOIS ALREADY HAS GOTTEN AT LEAST SEVENTY FOUR THOUSAND CLAIMS MORE THAN TWICE ITS TOTAL CLAIMS AFTER THE SAN FRANCISCO QUAKE BECAUSE FEW DRIVERS WERE ON THE ROADS DURING THE PREDAWN LOS ANGELES QUAKE LAWSUITS PROBABLY WILL FOCUS ON BUILDING CONSTRUCTION DEFECTS PLAINTIFFS' LAWYERS SAID THAT MEANS LESS LIABILITY FOR THE STATE BUT MORE FOR HOME DEVELOPERS BUILDERS AND CONTRACTORS SOME LOS ANGELES CONSTRUCTION DEFECT LAWYERS ARE WARMING UP TO THE TASK WITH ADVERTISEMENTS SOLICITING QUAKE RELATED BUSINESS ONE SUCH ATTORNEY DANIEL G. EPSTEIN IN IRVINE IS PITCHING THE NOTION THAT HOMEOWNERS ALSO CAN SUE FOR LATENT CONSTRUCTION PROBLEMS THAT THE EARTHQUAKE REVEALED THINGS LIKE PROBLEMS WITH FRAMING ABSENCE OF SHEER WALLS ABSENCE OF SHEER NAILING USUALLY YOU HAVE TO OPEN UP THE WALLS TO FIND THAT OUT MR. EPSTEIN SAID BUT THE EARTHQUAKE DOES THAT FOR YOU ALTHOUGH MANY AREA RESIDENTS HAVE ALREADY CONTACTED LAWYERS ATTORNEYS HAVEN'T FILED MANY SUITS YET BECAUSE THEY NEED TO CONSULT WITH ARCHITECTS AND ENGINEERS TO SEE WHICH CLAIMS ARE VALID HE SAID LAWYERS ARE ALSO IN THE PROCESS OF NEGOTIATING WITH HOMEOWNERS' INSURERS THE INSURANCE INDUSTRY LARGELY DODGED ONE KIND OF CLAIM THAT'S USUALLY PREVALENT AFTER NATURAL DISASTERS WORKERS' COMPENSATION SUITS FILED BY INJURED EMPLOYEES BECAUSE OF THE DOUBLE FORTUITY THAT THE QUAKE OCCURRED BEFORE MOST PEOPLE'S COMMUTING HOURS ON A DAY IN WHICH MOST PEOPLE WERE OFF FROM WORK ANYWAY AS A RESULT OF MARTIN LUTHER KING'S BIRTHDAY INSURERS CAN EXPECT SOME LAWSUITS ARISING FROM COVERAGE DISPUTES BUT IT'S HARD TO PREDICT HOW EXTENSIVE A PROBLEM THAT WILL BE SAID JERRY PARSONS A STATE FARM SPOKESMAN ARCHITECTS AND DESIGNERS WHO GENERALLY CAN BE HELD LIABLE ONLY FOR BUILDINGS CONSTRUCTED WITHIN THE PAST TEN YEARS THAT DON'T COMPLY WITH INDUSTRY STANDARDS AREN'T EXPECTING TOO MANY QUAKE RELATED SUITS SCHINNERER MANAGEMENT SERVICES INCORPORATED A LEADING INSURER OF DESIGN PROFESSIONALS AND A UNIT OF MARSH AND MCLENNAN COMPANIES NEW YORK FACED ONLY TWO LAWSUITS AND SEVEN CLAIMS AFTER THE SAN FRANCISCO EARTHQUAKE SAID SCHINNERER'S PRESIDENT PAUL L. GENECKI HUMAN NATURE MAY COME INTO THIS HE SAID QUOTE WHEN IT IS SO DEVASTATING WHEN IT IS SO MUCH AN ACT OF GOD THERE MAY BE MORE OF AN ACCEPTANCE THAT THIS IS JUST PART OF THE RISK YOU RUN QUOTE NONETHELESS PLENTY OF PEOPLE SUED HOMEBUILDERS AFTER HURRICANE ANDREW SWEPT THROUGH FLORIDA IN NINETEEN NINETY TWO MIAMI BASED LENNAR CORPORATION THE STATE'S LARGEST DEVELOPER SPENT TWO POINT FOUR MILLION DOLLARS LAST YEAR TO SETTLE TWO LAWSUITS ARISING FROM ALLEGED HURRICANE DAMAGE IN THREE HUNDRED FIFTY HOMES THE COMPANY SAID IT DISAGREED WITH THE ALLEGATIONS IN THE SUITS ERVIN A. GONZALEZ A MIAMI ATTORNEY HANDLING SEVERAL HURRICANE SUITS SAID HE HAS REACHED SETTLEMENTS IN SUITS INVOLVING MORE THAN TWO THOUSAND FIVE HUNDRED HOMES FOR ALMOST TEN MILLION DOLLARS HE ALSO IS WORKING ON PENDING SUITS AGAINST TWO DEVELOPERS FLORIDA DEVELOPERS WON'T BE FULLY OUT OF THE WOODS UNTIL NINETEEN NINETY SEVEN WHEN THE LAST OF HURRICANE RELATED SUITS CAN BE FILED BUT ALLAN J. PEKOR LENNAR'S FINANCIAL VICE PRESIDENT SAID HE DOESN'T EXPECT MUCH MORE LITIGATION THE HURRICANE LITIGATION IS LONG BEHIND US HE SAID IN THE MIDWEST ON THE OTHER HAND LAWSUITS FROM MISSISSIPPI FLOODING IN JULY AND AUGUST COULD TRICKLE IN FOR YEARS A LOT OF THE SUITS WILL BE FILED BY FARMERS ALLEGING THAT NEIGHBORING FARMERS FAILED TO STORE PESTICIDES ABOVE THE WATER LINE SAID DON C. KEENAN AN ATLANTA LAWYER AND FORMER PRESIDENT OF THE AMERICAN BOARD OF TRIAL ADVOCATES LOS ANGELES THE LONG TERM DAMAGE THAT WAS DONE IS THE PESTICIDE COMMINGLING WITH WELL WATER CROPS AND HOMES SAID MR. KEENAN WHOSE FIRM IS LOOKING INTO A HANDFUL OF POTENTIAL FLOOD RELATED LAWSUITS THESE ARE THE KIND OF CASES THAT TAKE A LONG TIME TO INVESTIGATE THE MIDWEST FLOODS WILL GO ON INTO THE NEXT CENTURY I CAN ASSURE YOU HIS FIRM HASN'T FILED ANY FLOOD SUITS YET A TEN YEAR STATUTE OF LIMITATIONS FOR PROPERTY DAMAGE ALLOWS LAWYERS TO CONTINUE THEIR INVESTIGATIONS FOR YEARS EVENTUALLY GOVERNMENT AGENCIES ALSO MIGHT BE SUED FOR ALLEGEDLY FAILING TO ERECT SOLID FLOOD BARRIERS AND TO WARN OF IMPENDING DISASTER BUT IN THE CASE OF FLOOD AT LEAST BUILDERS WILL ESCAPE MOST LITIGATION FRANKLY OTHER THAN NOAH NOBODY'S BEEN ABLE TO BUILD SOMETHING THAT'S GOING TO SURVIVE A MASSIVE FLOOD MR. KEENAN SAID THE RECENT FREEZE IN THE NORTHEAST MEANWHILE IS ATTRACTING LITTLE INTEREST FROM INJURY LAWYERS IT'S POSSIBLE THAT MORE PEOPLE SLIPPED AND FELL LAST MONTH SAID NEW YORK ATTORNEY PAMELA A. LIAPAKIS BUT SHE HASN'T HEARD OF ANY SPECIAL FREEZE RELATED LITIGATION QUOTE WE TRY TO KEEP TO THE MORE SERIOUS CASES QUOTE SHE SAID A FEDERAL JUDGE DISMISSED INVENTOR ROBERT W. KEARNS'S WINDSHIELD WIPER PATENT CLAIMS AGAINST TWENTY TWO FOREIGN CAR COMPANIES A SIGNIFICANT SETBACK FOR MR. KEARNS AFTER PREVIOUS VICTORIES AGAINST FORD MOTOR COMPANY AND CHRYSLER CORPORATION MR. KEARNS CLAIMED IN HIS LAWSUIT THAT THE CAR COMPANIES INFRINGED HIS PATENTS ON THE INTERMITTENT WINDSHIELD WIPER IN DISMISSING THE CASE U. S. DISTRICT JUDGE AVERN COHN OF DETROIT FOUND THAT MR. KEARNS COULDN'T ADEQUATELY REPRESENT HIMSELF AND HAD REFUSED TO RETAIN A LAWYER THE JUDGE ALSO SAID IN HIS WRITTEN ORDER THAT DURING THE CASE MR. KEARNS HAD DEMONSTRATED HIS INABILITY TO FOCUS HIS INABILITY TO UNDERSTAND THE RULES OF LAW AND HIS FAILURE TO FOLLOW THE COURT'S ORDERS JUDGE COHN DISMISSED A SIMILAR KEARNS CASE AGAINST GENERAL MOTORS CORPORATION LAST SUMMER IN NINETEEN NINETY MR. KEARNS WON A TEN POINT TWO MILLION DOLLAR SETTLEMENT FROM FORD AFTER A JURY FOUND THAT FORD HAD INFRINGED HIS PATENTS FOR WIPER SYSTEMS TWO YEARS LATER HE WON A NINETEEN POINT EIGHT MILLION DOLLAR JURY VERDICT FROM CHRYSLER CORPORATION WHICH THE COMPANY HAS APPEALED MR. KEARNS WAS REPRESENTED BY LAWYERS IN THOSE CASES THE CURRENT CASE WAS FILED AGAINST FOREIGN AUTO MAKERS INCLUDING TOYOTA MOTOR CORPORATION NISSAN MOTOR COMPANY AND MAZDA MOTOR CORPORATION MR. KEARNS REFUSED TO FOLLOW THE COURT ORDERS HE REFUSED TO GET A LAWYER AND THE JUDGE FINALLY HAD HAD ENOUGH SAID GEORGE BADENOUCH A LAWYER WITH THE NEW YORK FIRM KENYON AND KENYON WHO REPRESENTED TWO OF THE DEFENDANTS IN THE CASE MR. KEARNS SAID HE WOULD ASK THE JUDGE TO RECONSIDER THE DECISION I FEEL SAD FOR MYSELF FOR OUR COUNTRY AND THE STANDARD OF LIVING OF OUR CITIZENS HE SAID THE REST OF THE WORLD IS BEING TOLD THAT THEY CAN SIMPLY INFRINGE U. S. PATENTS WITH IMPUNITY KEARNS VERSUS WOOD MOTORS U. S. DISTRICT COURT DETROIT CIVIL NUMBER CRAVATH'S NEW BRANCH THE NEW YORK LAW FIRM CRAVATH SWAINE AND MOORE TRADITIONALLY AVERSE TO OPENING BRANCH OFFICES VOTED TO EXPAND TO HONG KONG THE THREE HUNDRED TWENTY ATTORNEY FIRM WILL SEND TWO CURRENT PARTNERS AND A HANDFUL OF ASSOCIATES TO HONG KONG AS EARLY AS THIS SUMMER CONCENTRATING ON PRIVATIZATION PROJECT FINANCE AND SECURITIES WORK SAMUEL C. BUTLER PRESIDING PARTNER SAID THAT HONG KONG UNLIKE TOKYO IS A CENTER FOR COMPANIES SEEKING TO RAISE MONEY IN THE U. S. WHICH IS WHAT WE DO AT PRESENT CRAVATH'S ONLY BRANCH IS IN LONDON EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE A LEGAL BEAT ARTICLE MONDAY ABOUT LITIGATION OVER NATURAL DISASTERS MISSTATED THE FIRST NAME OF AN IRVINE CALIFORNIA PLAINTIFFS' ATTORNEY HE IS DAVID G. EPSTEIN CONTINENTAL AIRLINES SAID ITS JANUARY TRAFFIC FELL EIGHT POINT SIX PERCENT TO TWO POINT NINE NINE BILLION REVENUE PASSENGER MILES FROM THREE POINT TWO SEVEN BILLION A YEAR AGO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE SLIGHTLY TO FIFTY SEVEN POINT ONE PERCENT FROM FIFTY SIX POINT TWO PERCENT THE AIRLINE HAS SAID THAT JANUARY'S COLD WEATHER ON THE EAST COAST AFFECTED ITS OPERATIONS NISSAN MOTOR COMPANY JAPAN'S SECOND LARGEST AUTO MAKER SAID IT WILL EXPAND THE SERVICE OFFERED BY ITS CELLULAR AND PORTABLE TELEPHONE VENTURE TO THE COUNTRY'S SOUTHERN REGIONS OF KYUSHU AND OKINAWA NISSAN'S PHONE VENTURES ALREADY SERVE JAPAN'S MAJOR METROPOLITAN AREAS OF TOKYO AND OSAKA THE COMPANY SAID IT WILL SET UP DIGITAL T. U. KA KYUSHU LIMITED IN CONJUNCTION WITH JAPAN TELECOM COMPANY HITACHI LIMITED KYUSHU RAILWAY COMPANY AND OTHER LOCAL COMPANIES AND ARMS OF FOREIGN COMPANIES NISSAN'S KYUSHU MOBILE PHONE VENTURE PLANS TO START SERVICE IN NINETEEN NINETY SIX IN THE VENTURE WITH TWO BILLION YEN EIGHTEEN POINT FIVE MILLION DOLLARS OF CAPITAL NISSAN WILL HAVE A STAKE OF ALMOST TWENTY THREE PERCENT AS WILL JAPAN TELECOM OTHER JAPANESE PARTNERS INCLUDE NISHI NIPPON RAILROAD COMPANY NIPPON STEEL CORPORATION AND TOYOTA MOTOR CORPORATION K. D. D. JAPAN'S LEADING INTERNATIONAL TELEPHONE CARRIER WILL HAVE AN INTEREST AND SEVERAL JAPANESE TRADING HOUSES WILL HAVE SMALLER STAKES FOREIGN PARTNERS INCLUDE PACIFIC TELESIS GROUP'S PACIFIC TELESIS INTERNATIONAL INCORPORATED AND G. T. E. CORPORATION FROM THE U. S. AND BRITISH TELECOMMUNICATIONS P. L. C. NISSAN SAID THE SERVICE WILL START IN THE ISLAND'S SEVEN MAJOR CITIES AND WILL LOOK TO EXPAND TO OUTSIDE CITIES NISSAN WHICH WANTS TO SET UP A DIGITAL PHONE SERVICE NETWORK IN JAPAN INDICATED IT HOPES TO SERVE THE AREA AROUND NAGOYA IN CENTRAL JAPAN WHILE EXPANDING SERVICE AROUND TOKYO AND OSAKA FRENCH MUNICIPAL SERVICES GROUP LYONNAISE DES EAUX DUMEZ S. A. SAID IT HAS ENTERED INTO A PARTNERSHIP WITH THAILAND'S ITALTHAI LYONNAISE DUMEZ SAID THE ALLIANCE WILL ALLOW THE TWO COMPANIES TO BID JOINTLY FOR PROJECTS IN THAILAND TO DISTRIBUTE AND TREAT WATER TERMS OF THE PARTNERSHIP WEREN'T DISCLOSED ITALTHAI WITH ANNUAL REVENUE OF ABOUT FIVE BILLION FRANCS EIGHT HUNDRED FORTY SIX MILLION DOLLARS IS INVOLVED MAINLY IN CONSTRUCTION ACTIVITIES BUT ALSO HAS HOTEL AND PROPERTY DEVELOPMENT BUSINESS LYONNAISE DUMEZ SAID IT SAID ITALTHAI EMPLOYS THIRTY THOUSAND PEOPLE I. C. O. INCORPORATED SAID IT BOUGHT THE OUTSTANDING SHARES OF CAPITAL STOCK OF SHEARER SUPPLY LIMITED OF CANADA IN A CASH AND STOCK TRANSACTION VALUED AT ABOUT TWO POINT FIVE MILLION CANADIAN DOLLARS ONE POINT NINE MILLION U. S. DOLLARS I. C. O. SAID IT PAID FOR SHEARER WITH NINETY EIGHT THOUSAND TWO HUNDRED NINETY FOUR SHARES OF ITS COMMON STOCK AND THE REMAINDER IN CASH SHEARER WHICH HAD REVENUE OF FIVE POINT SIX MILLION DOLLARS FOR THE NINE MONTHS ENDED DECEMBER THIRTY FIRST AND NET INCOME OF FOUR HUNDRED ONE THOUSAND DOLLARS RECONDITIONS ENGINES USED WITH PUMPING UNITS OF OIL WELLS AND DISTRIBUTES PARTS AND SUPPLIES FOR PNEUMATIC POWER SYSTEMS I. C. O. WHICH INSPECTS AND RECONDITIONS NEW AND USED TUBULAR GOODS SAID IT BOUGHT SHEARER IN AN EFFORT TO EXPAND ITS CURRENT PRODUCTS AND SERVICES OUTSIDE THE U. S. SEPARATELY I. C. O. SAID IT PREPAID ABOUT FOUR POINT NINE MILLION DOLLAR FACE VALUE OF EIGHT PERCENT SENIOR SUBORDINATED PROMISSORY NOTES DUE OCTOBER FIRST NINETEEN NINETY NINE TO BAKER HUGHES INCORPORATED AS PART OF THE TRANSACTION BAKER EXERCISED WARRANTS TO BUY THREE HUNDRED FORTY NINE THOUSAND ONE HUNDRED FORTY THREE SHARES OF I. C. O.'S STOCK TITAN CORPORATION SAID IT WILL RECEIVE A TEN MILLION DOLLAR PAYMENT FROM THE NAVY AFTER RESOLVING A DISPUTE OVER THE COMPANY'S CONTRACT TO PROVIDE A SYSTEM TO LINK SHIPS AND SUBMARINES BY SATELLITE THE ELECTRONICS CONCERN SAID IT EXPECTS PAYMENT WITHIN THIRTY DAYS TITAN DECLARED A TEN MILLION DOLLAR LOSS LAST YEAR THAT WAS RELATED LARGELY TO THE CONTRACT A SPOKESWOMAN SAID TITAN IS EVALUATING HOW IT WILL ACCOUNT FOR THE PAYMENT ONE WORKER DIED AND TWO WERE SENT TO THE HOSPITAL FOR OBSERVATION AND RELEASED FOLLOWING AN APPARENT HYDROGEN SULFIDE GAS LEAK THURSDAY AT SHELL CHEMICAL COMPANY'S DEER PARK COMPLEX EAST OF HOUSTON THE THREE ALL EMPLOYEES OF BROWN AND ROOT INCORPORATED A UNIT OF OIL SERVICES CONCERN HALLIBURTON COMPANY WERE IN THE PLANT DOING MAINTENANCE WORK FOR SHELL CHEMICAL A UNIT OF ROYAL DUTCH SLASH SHELL GROUP INCORPORATED A BROWN AND ROOT SPOKESWOMAN SAID GEORGE BETANCOURT A THIRTY ONE YEAR OLD PIPEFITTER HELPER WAS FOUND UNCONSCIOUS AND TAKEN TO THE HOSPITAL WHERE HE WAS PRONOUNCED DEAD SHE DIDN'T IDENTIFY THE TWO OTHER MEN SHELL CHEMICAL SPOKESMAN DENNIS WINKLER SAID A HYDROGEN SULFIDE ALARM DID SOUND IN THE AREA WHERE MR. BETANCOURT WAS FOUND INDICATING A GAS LEAK MAY HAVE OCCURRED AN INVESTIGATIVE TEAM WAS FORMED TO DETERMINE WHAT HAPPENED MR. WINKLER SAID THE MEN WERE PERFORMING ROUTINE MAINTENANCE ON THE TREATMENT UNIT WHERE HYDROGEN SULFIDE IS REMOVED FROM CRUDE OIL WORKERS IN THAT AREA ARE REQUIRED TO WEAR RESPIRATORY EQUIPMENT FOR PROTECTION FROM THE GAS WHICH CAN CAUSE SEVERE RESPIRATORY COMPLICATIONS AND AT HIGH CONCENTRATIONS CAN MAKE BREATHING IMPOSSIBLE MR. BETANCOURT WAS WEARING THE REQUIRED RESPIRATORY EQUIPMENT MR. WINKLER SAID THE PROBLEM WAS CONTAINED TO THE IMMEDIATE AREA AND HAD NO IMPACT ON OTHER UNITS ON THE ONE THOUSAND FIVE HUNDRED ACRE COMPLEX MR. WINKLER SAID THE MAINTENANCE IS TO RESUME WHEN SHELL DETERMINES IT IS SAFE POLAND'S TWO PARTY COALITION HAS BEEN PLUNGED INTO CRISIS WITH THE RESIGNATION OF FINANCE MINISTER MAREK BOROWSKI IN A POWER STRUGGLE WITH PRIME MINISTER WALDEMAR PAWLAK MR. BOROWSKI WHO IS A MEMBER OF THE DEMOCRATIC LEFT ALLIANCE THE PARTY OF THE FORMER COMMUNISTS OFFERED HIS RESIGNATION FRIDAY SAYING THE PRIME MINISTER WAS NOT LETTING HIM CONTROL ECONOMIC ISSUES AS SPELLED OUT IN THE TWO PARTIES' COALITION AGREEMENT OF OCTOBER THE FIGHT BEGAN ON JANUARY TWENTY NINTH WHEN MR. PAWLAK DISMISSED DEPUTY FINANCE MINISTER STEFAN KAWALEC OVER MR. BOROWSKI'S OBJECTIONS MR. PAWLAK WHO HEADS THE PEASANT PARTY THE JUNIOR PARTNER IN THE THREE MONTH OLD LEFT WING COALITION SO FAR HASN'T ACCEPTED MR. BOROWSKI'S RESIGNATION IF MR. PAWLAK BACKS DOWN AND DOES NOT ACCEPT MR. BOROWSKI'S RESIGNATION THE MOVE WILL LIKELY BE INTERPRETED AS A SIGN THAT THE PEASANT PARTY HAS BEEN PUT IN ITS PLACE AS THE JUNIOR COALITION PARTNER MR. PAWLAK'S MOVES ARE A SIGN THAT THE PEASANT PARTY IS ATTEMPTING TO STEP OUT FROM UNDER DEMOCRATIC LEFT ALLIANCE DOMINATION AND SHOW ITS SUPPORTERS THAT IT WON'T ALLOW THE DEMOCRATIC LEFT ALLIANCE TO CONTROL ALL KEY ECONOMIC DECISIONS WHILE MR. BOROWSKI'S ACTUAL RESIGNATION WOULD INDICATE OPEN CONFLICT BETWEEN THE TWO PARTIES IF HE STAYS IT WILL PROBABLY MEAN THE DEMOCRATIC LEFT ALLIANCE HAS PREVAILED MR. BOROWSKI'S MOVE COULD HARDLY HAVE COME AT A WORSE TIME FOR POLAND AS GOVERNMENT ECONOMIC CHIEF MR. BOROWSKI HAS SPENT THE PAST MONTH PUSHING AN AUSTERE AND UNPOPULAR NINETEEN NINETY FOUR NATIONAL BUDGET THROUGH PARLIAMENTARY COMMITTEES THE BUDGET WHICH MEETS THE APPROVAL OF KEY INTERNATIONAL ASSISTANCE ORGANIZATIONS SUCH AS THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK IS SET TO REACH THE FLOOR OF PARLIAMENT LATER THIS MONTH WITHOUT MR. BOROWSKI AT THE HELM THE BUDGET'S FATE IS HIGHLY UNCERTAIN MEMBERS OF PARLIAMENT WHO HAVE SEEN THEIR PARTY LEADERSHIP BACKTRACK ON ELECTION PROMISES OF GREATER SPENDING MAY SEIZE THE OPPORTUNITY TO INCREASE THE STATE DEFICIT FROM THE FOUR POINT ONE PERCENT OF GROSS DOMESTIC PRODUCT ENVISAGED BY MR. BOROWSKI SHOULD DEFICIT RISE OR IF THE BUDGET GETS BOGGED DOWN AN I. M. F. DELEGATION NOW IN POLAND WOULD LIKELY WITHHOLD APPROVAL OF THE COUNTRY'S ECONOMIC PLANS THIS WOULD CAUSE THE SUSPENSION OF A YEAR OLD STANDBY AGREEMENT SET TO BE RENEWED IN MARCH NOT ONLY DOES I. M. F. APPROVAL OPEN THE WAY TO I. M. F. FUNDS OTHER AID AND GOVERNMENT ORGANIZATIONS LOOK TO I. M. F. OPINIONS TO SHAPE THEIR OWN POLICIES ON APRIL FIRST A SECOND ROUND OF DEBT RELIEF VALUED AT OVER TWENTY BILLION DOLLARS FROM POLAND'S WESTERN GOVERNMENT CREDITORS THE QUOTE PARIS CLUB QUOTE IS PLANNED TO TAKE EFFECT IF THE I. M. F. WITHDRAWS APPROVAL THE PARIS CLUB WILL PROBABLY POSTPONE ACTION I. M. F. HESITATION WOULD ALSO SCUTTLE RECENTLY ACCELERATING TALKS BETWEEN POLAND AND THE LONDON CLUB OF WESTERN COMMERCIAL BANK CREDITORS ON OVER TWELVE BILLION DOLLARS IN DEBT WITHOUT A LONDON CLUB DEAL FOREIGN BANKS AND INVESTORS WILL CONTINUE THEIR RELUCTANCE TO FUND LARGE OPERATIONS IN POLAND AND POLAND WILL REMAIN LOCKED OUT OF INTERNATIONAL FINANCIAL MARKETS MR. BOROWSKI'S RESIGNATION BRINGS TO A HEAD A SIMMERING CONFLICT BETWEEN TWO PARTIES JOINED IN A MARRIAGE OF CONVENIENCE IN FORMING THIS GOVERNMENT THE DEMOCRATIC LEFT ALLIANCE WHICH WON ONE HUNDRED SEVENTY THREE PARLIAMENTARY SEATS IN SEPTEMBER'S ELECTION OFFERED MR. PAWLAK AND THE ONE HUNDRED TWENTY EIGHT SEAT PEASANT PARTY THE POSITION OF PREMIER AND SEVERAL OTHER KEY POSTS IN RETURN FOR DEMOCRATIC LEFT ALLIANCE CONTROL OF FINANCE PRIVATIZATION AND OTHER KEY ECONOMIC POLICY MAKING POSITIONS SINCE ACCEPTING THE DEAL THE PEASANT PARTY HAS PROVEN UNCOOPERATIVE AND OBSTRUCTIONIST IN AREAS SUCH AS THE BUDGET TRADE POLICY AND PRIVATIZATION ACCORDING TO SOURCES WITHIN THE GOVERNMENT HIGH OFFICIALS OF THE DEMOCRATIC LEFT ALLIANCE HAVE ACCUSED MR. PAWLAK OF VIOLATING THE COALITION AGREEMENT BY DISMISSING MR. KAWALEC A NONPARTY TECHNOCRAT HANDLING FINANCIAL SECTOR REFORM WHO HAS WORKED IN THE MINISTRY SINCE POLISH REFORMS BEGAN IN NINETEEN EIGHTY NINE PRIME MINSTER PAWLAK'S PEASANT PARTY WAS REPORTEDLY UPSET BY MR. KAWALEC'S UNWILLINGNESS TO REFINANCE THE HEAVILY INDEBTED BANK FOR FOOD ECONOMY OR BGZ AN AGRICULTURALLY ORIENTED BANK WHICH HAS HEADQUARTERS IN THE SAME BUILDING AS THE PEASANT PARTY MR. KAWALEC ALSO CONTROLLED THE STRATEGIC AND POTENTIALLY LUCRATIVE POSITIONS OF DIRECTORS ON POLAND'S SOON TO BE PRIVATIZED STATE BANKS AND BOTH COALITION PARTIES HAVE BEEN AIMING TO PLACE THEIR OWN DESIGNATES ON THESE BOARDS COMPOUNDING THE FIGHT OVER POLICY FORMULATION IS A BATTLE TO INSTALL REGIONAL LEADERS IN POLAND'S FORTY NINE DISTRICTS AS WARSAW'S LINK TO LOCAL AREAS THESE POSITIONS ARE A KEY SPOIL IN CONTROLLING POLAND'S STILL CENTRALIZED GOVERNMENT ADMINISTRATION THE DEMOCRATIC LEFT ALLIANCE IS COMPLAINING THAT THE PEASANT PARTY IS REPLACING TOO MANY OF THESE POSITIONS WITH ITS OWN OFFICIALS WITHOUT CONSULTING THEIR SENIOR COALITION PARTNER SHARES ON THE WARSAW STOCK EXCHANGE WILL PROBABLY NOT TAKE THE WEEKEND'S POLITICAL DEVELOPMENTS WELL LAST WEEK THE MARKET LOST ALMOST TWENTY PERCENT OF ITS VALUE AFTER POLITICIANS' COMMENTS THAT THE EXCHANGE'S FAST RISING PRICE LEVELS HAD CREATED A BUBBLE ABOUT TO BURST IT WAS ONLY AFTER LAST YEAR'S AUSTERE BUDGET PASSED THROUGH PARLIAMENT AND THE CURRENT I. M. F. DEAL WAS SIGNED THAT POLAND'S BOURSE BEGAN ITS METEORIC RISE FUJI PHOTO FILM COMPANY SAID IT WILL BEGIN PRODUCING COLOR PHOTOGRAPHIC PAPER IN THE U. S. A BOLD MOVE CHALLENGING EASTMAN KODAK COMPANY'S DOMINANT POSITION IN THAT MARKET THE MOVE ALSO ADDS A NEW TWIST TO AN ANTI DUMPING PETITION FILED BY RIVAL KODAK WHICH CLAIMS TOKYO'S FUJI SOLD ITS PAPER IN THE U. S. AT QUOTE BELOW FAIR MARKET VALUE QUOTE SHOULD FUJI BECOME A U. S. PRODUCER IT COULD FREELY SET ITS PAPER PRICES WITHOUT RISKING CHARGES THAT IT WAS DUMPING OR SELLING IMPORTS AT UNFAIRLY LOW PRICES IN THE U. S. KODAK'S PETITION CLAIMS THAT FUJI CURRENTLY USES PROFITS FROM MONOPOLY LIKE SALES IN JAPAN TO SUBSIDIZE THE SELLING OF ITS PAPER IN THE U. S. FOR PRICES AS LOW AS ONE FOURTH OF WHAT FUJI CHARGES IN JAPAN AND THE NETHERLANDS KODAK IS ASKING FOR TARIFFS AS STEEP AS THREE HUNDRED PERCENT TO BE PLACED ON IMPORTED PHOTOGRAPHIC PAPER AND RELATED CHEMICALS SHOULD KODAK PREVAIL FUJI'S RANGE OF OPTIONS WOULD BE SMALL SAID MICHAEL ELLMANN AN ANALYST WITH WERTHEIM SCHRODER AND COMPANY THE INTERNATIONAL TRADE COMMISSION HAS ALREADY ISSUED A PRELIMINARY RULING THAT KODAK WAS MATERIALLY INJURED BY FUJI IMPORTS THE NEXT STEP IS FOR THE COMMERCE DEPARTMENT TO DECIDE THE MARGIN OF TARIFFS TO LEVY ON FUJI DEPENDING ON WHAT PRICE DISCREPANCIES EXIST BETWEEN FUJI'S U. S. PAPER AND JAPAN AND NETHERLANDS PAPER A PRELIMINARY DECISION IS EXPECTED MARCH TWENTY NINTH IF HOWEVER KODAK WERE TO WITHDRAW THE PETITION BEFORE THE END OF MARCH IT IS POSSIBLE FUJI WOULDN'T BUILD THE PLANT SAID TOM SHAY FUJI SPOKESMAN KODAK SAID IT HAD NO PLANS TO DROP THE PETITION AND DECLINED FURTHER COMMENT ON FUJI'S ANNOUNCEMENT ANALYSTS WEREN'T OVERLY CONCERNED ABOUT THE IMPACT ON KODAK THE BUILDING OF A U. S. PLANT WOULD OF COURSE ALLOW FUJI TO CHARGE WHATEVER THEY WANT SAID KIMBERLY RITRIEVI AN ANALYST WITH SHEARSON LEHMAN QUOTE BUT THE EXPENSE ASSOCIATED WITH BUILDING THE PLANT WILL DEFINITELY RAISE FUJI'S COST STRUCTURE SO THE EXTENT TO WHICH THEY COULD PUSH PRICES DOWN IS LOW QUOTE THE U. S. MARKET FOR COLOR PHOTOGRAPHIC PAPER IS GROWING AND THEREFORE IMPORTANT TO BOTH COMPANIES IF IT ESTABLISHES A DOMESTIC PLANT AND OFFERS LOWER PAPER PRICES FUJI COULD BECOME A MORE ENTICING OPTION TO PHOTO FINISHERS AND IGNITE A PRICE WAR I WOULD WELCOME THEM HAVING A PLANT HERE SAID RICK BACHELDER PRESIDENT OF FILMET COLOR LABORATORIES INCORPORATED IN PITTSBURGH THE INTEREST RATE BOGEYMAN FINALLY STRUCK LAST WEEK AND KNOCKED THE STOCK MARKET FOR A LOOP DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS NOTES THAT INVESTORS HAVEN'T EXPERIENCED A RATE INCREASE SINCE NINETEEN EIGHTY NINE QUOTE THE MARKET HAS ASSUMED FOR FIVE YEARS THAT THE FED WOULD PROVIDE THE LIQUIDITY TO PUSH STOCKS HIGHER QUOTE MR. SHULMAN SAYS THIS IS A SEA CHANGE IT'S THE END OF THE MARKET RELYING ON THE FED TO PROVIDE THAT LIQUIDITY BUT OTHER ANALYSTS CONTEND THAT STOCKS WILL BOUNCE BACK AFTER INVESTORS REALIZE THE INTEREST RATE INCREASE WILL DO LITTLE TO HARM THE ECONOMY THERE'S ALWAYS A KNEE JERK OVERREACTION SAYS PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES THE RATE HIKE WILL PROBABLY HELP THE ECONOMY BECAUSE PEOPLE WILL SPEED UP INTEREST RATE DEPENDENT PURCHASES SUCH AS LARGE CONSUMER DURABLES AND HOUSES LEHMAN BROTHERS' ELAINE GARZARELLI ONE OF WALL STREET'S MOST BULLISH FORECASTERS SAYS THE SELL OFF DIDN'T FAZE HER EVERYBODY SHOULD BE BUYING RIGHT NOW IT'S JUST A GIFT SHE SAYS OF FRIDAY'S PLUNGE SHE SAYS THE MARKET WAS DUE FOR A PULLBACK AND THAT THE WORST SHE ANTICIPATES FROM HERE IS A SIX PERCENT DECLINE TO THREE THOUSAND SIX HUNDRED FIFTY A TYPICAL TEMPORARY REACTION TO A FEDERAL RESERVE RATE INCREASE QUOTE THIS IS VERY NORMAL THE MARKET IS DOING EXACTLY WHAT IT SHOULD MS. GARZARELLI SAYS THE FED IS JUST DOING THIS TO MAKE THE BOND MARKET HAPPY AND THE BOND MARKET DOESN'T KNOW IT YET MICKEY D. LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK APPLAUDS THE FED FOR ELIMINATING THE UNCERTAINTY AND SPECULATION ABOUT A RATE INCREASE THAT SWEPT THROUGH THE MARKET LAST WEEK I FIND THIS QUITE POSITIVE FOR STOCKS BECAUSE THE FED ACTION IS A CLEAR SIGN IT MEANS BUSINESS ABOUT KEEPING INFLATION LOW AND LOW INFLATION PAVES THE WAY FOR SUSTAINED ECONOMIC GROWTH HE SAYS MR. LEVY ADDS THAT THE SHARP STOCK MARKET REACTION FRIDAY CAME BECAUSE MANY INVESTORS THINK THE FED'S MOVE IS THE BEGINNING OF A SERIES OF RATE INCREASES A NOTION THAT HE REJECTS EVEN IF THIS IS THE START OF A CLASSIC PATTERN OF RATE INCREASES THE STOCK MARKET SHOULD BE ABLE TO WEATHER A MODEST RISE IN SHORT RATES SOME ANALYSTS SAY ADMITTEDLY STOCKS PERFORMED BETTER IN THE TWELVE MONTHS PRIOR TO A FED TIGHTENING WITH THE S. AND P. RETURNING EIGHTEEN POINT SEVEN PERCENT BUT THE HISTORICAL AVERAGE GAIN OF ELEVEN POINT SIX PERCENT ARGUES FOR CONTINUED HIGH EXPOSURE TO STOCKS EVEN AFTER RATES START RISING MR. RAGSDALE SAYS HE ADDS THAT THE USUAL RELATIVE OUTPERFORMANCE OF STOCKS TO BONDS REMAINS CONSISTENT DURING THE PERIOD OF RISING RATES SOME ANALYSTS CONTEND THE STOCK MARKET WILL CONTINUE TO PUSH HIGHER AS LONG AS INCREASES IN THE FEDERAL FUNDS RATE ARE SMALL AND GRADUAL WITH THE RISES BEING NO MORE THAN A QUARTER OF A POINT AT A TIME BUT FEDERAL FUNDS ARE ONE THING A RISING DISCOUNT RATE THE RATE THE FED CHARGES MEMBER BANKS FOR SHORT TERM LOANS IS ANOTHER MATTER WHEN IT BEGINS TO RISE MR. RAGSDALE SAYS STOCKS TEND TO RUN INTO TROUBLE HIS STUDY SHOWS THAT PRICES TURN MARGINALLY LOWER IN THE MONTHS IMMEDIATELY FOLLOWING A DISCOUNT RATE INCREASE AND MANAGE ONLY A SMALL GAIN OF ONE POINT FIVE PERCENT AFTER TWELVE MONTHS STILL A DISCOUNT RATE INCREASE ISN'T LIKELY ANYTIME SOON SOME ANALYSTS SAY IT USUALLY COMES A CONSIDERABLE TIME AFTER THE FED'S INITIAL TIGHTENING PROVIDING STOCK MARKET INVESTORS A CHANCE TO RACK UP FURTHER GAINS BEFORE IT HAPPENS FOR EXAMPLE MR. RAGSDALE SAYS THE FED BEGAN A TIGHTENING IN DECEMBER NINETEEN EIGHTY SIX BUT DIDN'T RAISE THE DISCOUNT RATE UNTIL SEPTEMBER NINETEEN EIGHTY SEVEN NOT EVERYONE THINKS THE STOCK MARKET CAN SHRUG OFF RISING RATES THE CHICAGO MERCANTILE EXCHANGE LAST WEEK RAISED MARGIN REQUIREMENTS ON STOCK INDEX FUTURES IN AN EFFORT TO HEAD OFF A POSSIBLE STOCK MARKET TUMBLE AS A RESULT OF RISING RATES SALOMON BROTHERS' MR. SHULMAN ADDS THAT INVESTORS SHOULD WATCH CLOSELY WHAT EFFECT THE RATE RISE HAS ON MONEY FLOWING INTO MUTUAL FUNDS IF INDIVIDUAL INVESTORS TRIM BACK ON MUTUAL FUND INVESTMENTS THEN WE'RE GOING TO HAVE THAT LONGAWAITED CORRECTION HE SAYS ROBERT J. BARBERA AN ECONOMIST AT LEHMAN BROTHERS CONTENDS THAT BECAUSE THE ECONOMIC RECOVERY IS SELF SUSTAINING NOW ARTIFICIALLY LOW INTEREST RATES ARE NO LONGER NECESSARY HE PREDICTS THE FEDERAL FUNDS RATE WILL BE AT FOUR PERCENT BY THE END OF THE YEAR WITH ADVERSE IMPLICATIONS FOR THE STOCK MARKET HE EXPECTS THAT SOMETIME BETWEEN NOW AND YEAR END STOCK PRICES WILL EXPERIENCE A TEN PERCENT TO FIFTEEN PERCENT DECLINE I DON'T THINK ANYONE WOULD ARGUE THAT A FED FUNDS RATE OF FOUR PERCENT WOULDN'T CAUSE A CORRECTION HE SAYS QUOTE IT'S TOUGH TO SAY THAT WITH RISING SHORT RATES WE'D STILL HAVE A RISING MARKET BECAUSE IN THIS CIRCUMSTANCE WE'VE HAD AN EXTENDED CLIMB QUOTE MR. BARBERA SAYS I'M LOOKING FOR THE RISE IN RATES TO BE THE CAP ON THE MARKET'S ADVANCE THE DOW JONES INDUSTRIAL AVERAGE PLUMMETED NINETY SIX POINT TWO FOUR POINTS OR TWO POINT FOUR PERCENT TO THREE THOUSAND EIGHT HUNDRED SEVENTY ONE POINT FOUR TWO IT WAS THE DOW'S LARGEST ONE DAY POINT DECLINE SINCE NOVEMBER FIFTEENTH NINETEEN NINETY ONE WHEN IT PLUNGED ONE HUNDRED TWENTY POINTS STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX FELL TEN POINT NINE OH OR TWO POINT THREE PERCENT TO FOUR HUNDRED SIXTY NINE POINT EIGHT ONE AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SANK FIVE POINT NINE SEVEN OR TWO POINT TWO PERCENT TO TWO HUNDRED SIXTY ONE POINT TWO ONE THE NASDAQ COMPOSITE INDEX SLID TWENTY POINT FIVE ONE OR TWO POINT SIX PERCENT TO SEVEN HUNDRED SEVENTY SEVEN POINT TWO EIGHT THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX LOST EIGHT POINT EIGHT NINE OR ONE POINT EIGHT PERCENT TO FOUR HUNDRED SEVENTY EIGHT POINT TWO NINE FOR THE WEEK THE DOW LOST SEVENTY FOUR POINTS OR ONE POINT NINE PERCENT THE S. AND P. FIVE HUNDRED DROPPED NEARLY NINE POINTS OR ONE POINT NINE PERCENT AND THE NASDAQ COMPOSITE FELL MORE THAN NINETEEN POINTS OR TWO POINT FOUR PERCENT WORLD WIDE STOCK PRICES FELL FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST ONE POINT SIX THREE TO ONE HUNDRED SIXTEEN POINT SIX FOUR ECONOMICALLY SENSITIVE STOCKS AND FINANCIAL ISSUES WERE THE HARDEST HIT PROFIT TAKING CLOBBERED THE CYCLICALS WHICH HAVE LED THE MARKET'S ADVANCE DURING THE PAST SEVERAL MONTHS AMONG THE MOST ACTIVELY TRADED ISSUES ON THE BIG BOARD WERE CYCLICAL GIANTS SUCH AS GENERAL MOTORS WHICH DROPPED ONE AND THREE EIGHTHS TO SIXTY ONE AND FIVE EIGHTHS FORD WHICH LOST ONE AND THREE EIGHTHS TO SIXTY EIGHT AND DISNEY WHICH DECLINED ONE AND SEVEN EIGHTHS TO FORTY FIVE CITICORP PLUNGED TWO AND ONE QUARTER TO FORTY AND ONE QUARTER MERRILL LYNCH SKIDDED TWO AND SEVEN EIGHTHS TO FORTY ONE AND THREE EIGHTHS AND CHASE SHED ONE AND ONE HALF TO THIRTY THREE AND THREE QUARTERS EACH ON VOLUME OF NEARLY TWO MILLION SHARES OR MORE AMONG THE BIGGEST DECLINERS WAS INFORMATION RESOURCES WHICH PLUNGED EIGHT AND SEVEN EIGHTHS OR TWENTY FOUR PERCENT TO TWENTY EIGHT AND THREE QUARTERS ON NASDAQ VOLUME OF FOUR POINT SEVEN MILLION SHARES THE CHICAGO RETAILING MARKET RESEARCH COMPANY ESTIMATED ITS FOURTH QUARTER EARNINGS WILL REACH ONLY FIFTEEN CENTS TO SEVENTEEN CENTS A SHARE FAR BELOW EXPECTATIONS ANALYSTS HAD FORECAST EARNINGS OF THIRTY TWO CENTS TO THIRTY FOUR CENTS IN THE PERIOD AMERICAN DEPOSITARY RECEIPTS OF TELEFONOS DE MEXICO DECLINED TWO AND ONE QUARTER TO SEVENTY THREE ON HEAVY BIG BOARD VOLUME OF SIX POINT THREE MILLION THE MEXICAN TELEPHONE SERVICES PROVIDER SAID ITS NINETEEN NINETY THREE NET INCOME ROSE JUST FOUR POINT FIVE PERCENT SOMEWHAT BELOW ANALYSTS' EXPECTATIONS THE PLUNGE IN THE DOW INDUSTRIALS WAS THE EIGHTH GREATEST ONE DAY MOVE ON RECORD ON A POINT BASIS JUST BELOW APRIL FIFTEENTH NINETEEN EIGHTY EIGHT WHEN THE DOW LOST ONE HUNDRED ONE POINT FOUR SIX BUT ON A PERCENTAGE BASIS THE SLIDE WAS BARELY NOTABLE NOT EVEN MAKING THE TOP ONE HUNDRED THE DOW'S DECLINE ACTIVATED THE NEW YORK STOCK EXCHANGE'S COLLAR WHICH SLOWS COMPUTER AIDED PROGRAM TRADING WHENEVER THE INDUSTRIAL AVERAGE MOVES UP OR DOWN FIFTY POINTS FROM THE PREVIOUS DAY'S CLOSE IT WAS THE FIRST TIME THE COLLAR WAS ACTIVATED THIS YEAR WILLIAM POWER CONTRIBUTED TO THIS ARTICLE RYDER SYSTEM INCORPORATED EXPECTS TO REPORT AN ALMOST FORTY PERCENT JUMP IN FOURTH QUARTER EARNINGS PER SHARE FROM CONTINUING OPERATIONS M. ANTHONY BURNS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE RECENT QUARTER'S PERFORMANCE WILL BE COMPARED WITH A NINETEEN NINETY TWO FOURTH QUARTER IN WHICH THE HIGHWAY TRANSPORTATION CONCERN POSTED NET INCOME OF TWENTY EIGHT CENTS A SHARE FROM CONTINUING OPERATIONS MR. BURNS SAID IN AN INTERVIEW FOR ALL OF NINETEEN NINETY THREE MR. BURNS SAID RYDER WOULD REPORT A TWENTY PERCENT INCREASE IN PER SHARE EARNINGS FROM CONTINUING OPERATIONS IN NINETEEN NINETY TWO THE MIAMI BASED COMPANY'S CONTINUING OPERATIONS EARNED ABOUT NINETY EIGHT MILLION DOLLARS OR ONE DOLLAR AND SEVENTEEN CENTS A SHARE ON REVENUE OF FOUR BILLION DOLLARS HE SAID OTHER NUMBERS SUCH AS TOTAL EARNINGS FROM CONTINUING OPERATIONS IN THE FOURTH QUARTERS OF NINETEEN NINETY TWO AND NINETEEN NINETY THREE WEREN'T AVAILABLE THE FIGURES CITED BY MR. BURNS EXCLUDE RYDER'S LARGE AVIATION DIVISION WHICH IN DECEMBER WAS SPUN OFF INTO A PUBLICLY TRADED COMPANY CALLED AVIALL INCORPORATED THE AVIALL SPINOFF WAS THE LATEST AND LARGEST STEP IN A FOUR YEAR RESTRUCTURING PROGRAM AIMED AT REFOCUSING RYDER ON ITS CORE BUSINESS OF TRUCK LEASING TRUCK RENTING AUTO HAULING AND OTHER TRUCKING SERVICES QUOTE WE'VE NOW COMPLETED OUR TRANSITION QUOTE MR. BURNS SAID RYDER EXPECTS TO REPORT THAT ITS NINETEEN NINETY THREE REVENUE FROM CONTINUING OPERATIONS GREW TO FOUR POINT TWO BILLION DOLLARS FROM FOUR BILLION DOLLARS IN NINETEEN NINETY TWO FOR THE FOURTH QUARTER REVENUE FROM CONTINUING OPERATIONS INCREASED TO APPROXIMATELY ONE POINT ONE BILLION DOLLARS FROM ONE BILLION DOLLARS IN THE YEAR EARLIER PERIOD MR. BURNS ADDED WHEN RYDER REPORTS ITS NINETEEN NINETY THREE FINANCIAL RESULTS EXPECTED THIS WEEK THE AVIALL DIVISION'S FINANCIAL RESULTS FOR MOST OF THE YEAR WILL BE INCLUDED AS A RESULT RYDER PLANS TO REPORT AN OVERALL LOSS FOR THE YEAR DUE PRIMARILY TO A ONE HUNDRED SIXTY NINE POINT FOUR MILLION DOLLAR CHARGE RELATING TO THE AVIALL SPINOFF IN NINETEEN NINETY TWO INCLUDING ALL OPERATIONS RYDER POSTED EARNINGS OF ONE HUNDRED TWENTY FOUR MILLION DOLLARS OR ONE DOLLAR AND FIFTY ONE CENTS A SHARE ON REVENUE OF FIVE POINT TWO BILLION DOLLARS DURING THE FOURTH QUARTER OF NINETEEN NINETY TWO RYDER REPORTED EARNINGS OF TWENTY NINE POINT EIGHT MILLION DOLLARS OR THIRTY SIX CENTS A SHARE ON REVENUE OF ONE POINT THREE BILLION DOLLARS INCLUDING ALL OPERATIONS MR. BURNS ATTRIBUTED THE CONTINUING OPERATIONS GAINS AT RYDER LARGELY TO THE IMPROVED PERFORMANCE OF THE COMPANY'S LARGE VEHICLE LEASING AND SERVICES DIVISION WHERE EARNINGS FOR THE QUARTER ARE EXPECTED TO RISE FIFTY PERCENT FROM THE YEAR EARLIER PERIOD IN THE FOURTH QUARTER OF NINETEEN NINETY TWO THE DIVISION REPORTED PRETAX EARNINGS OF THIRTY ONE MILLION DOLLARS ON REVENUE OF EIGHT HUNDRED SIXTY EIGHT MILLION DOLLARS IF THE U. S. WERE TO ADOPT A CANADIAN STYLE NATIONAL MEDICAL PLAN HEALTH CARE SPENDING IN AMERICA WOULD A INCREASE BY TWENTY ONE POINT TWO BILLION DOLLARS B. DECREASE BY UP TO TWO HUNDRED FORTY ONE BILLION DOLLARS C. INCREASE BY THIRTY EIGHT BILLION DOLLARS THE ANSWER ALL OF THE ABOVE OR NONE OF THE ABOVE DEPENDING ON WHOSE DATA YOU BELIEVE EACH ESTIMATE IS BASED ON A SOPHISTICATED ECONOMIC MODEL THAT ITS SPONSORS SWEAR BY LEWIN VHI A CONSULTING FIRM PRODUCED ANSWER A THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE A NONPROFIT RESEARCH GROUP ANSWER B. AND THE CONGRESSIONAL BUDGET OFFICE ANSWER C. EACH IS DESIGNED TO GUIDE AMERICA'S LAWMAKERS IN THE HEALTH CARE DEBATE AND EACH UNDERSCORES A SIMPLE TRUTH IN THE COMPLEX EFFORT TO CALCULATE HEALTHCARE COSTS ECONOMIC MODELING AND FORECASTING ARE VERY UNCERTAIN SCIENCES DON'T NECESSARILY BELIEVE WHAT YOU READ QUOTE THE NUMBERS OUT OF THESE MODELS ARE BETTER THAN YOU COULD GET BY BACK OF THE ENVELOPE CALCULATIONS QUOTE SAYS CONSTANCE CITRO A RESEARCHER AT THE NATIONAL ACADEMY OF SCIENCES WHO HAS STUDIED HEALTH CARE MODELS BUT THERE NEEDS TO BE MORE RECOGNITION THAT THERE IS UNCERTAINTY ACTUALLY UNCERTAINTY ABOUNDS IT TAKES A MOUNTAIN OF COMPUTER CODING AND OFTEN MILLIONS OF PIECES OF DATA TO CREATE AN OPERATING MODEL A COMPUTER PROGRAM THAT ATTEMPTS TO SUM UP MATHEMATICALLY THE EFFECTS OF POTENTIAL POLICY CHANGES EVEN THE MOST SOPHISTICATED OF THESE MODELS IS USUALLY FAR FROM OBJECTIVE IN THE END A WELTER OF SUBJECTIVE JUDGMENTS AND GUESSES GETS FUNNELED INTO THE MODELS AND THAT'S WHERE THE TROUBLE BEGINS IT'S A WEAK POINT SAYS DONALD YETT A PROFESSOR AT THE UNIVERSITY OF SOUTHERN CALIFORNIA WHO HELPED DEVELOP ONE HEALTH CARE COST MODEL WE END UP HAVING TO MAKE RATHER CRUDE FORECASTS SOME QUESTIONS HOW MANY PEOPLE WILL STICK WITH THEIR OWN DOCTORS OR OPT INSTEAD TO JOIN HEALTH MAINTENANCE ORGANIZATIONS HOW EFFICIENTLY AND THUS INEXPENSIVELY WILL THESE H. M. O.S BE RUN ONCE PEOPLE WHO HAVE NEVER HAD COVERAGE BEFORE ARE INSURED HOW MUCH HEALTH CARE WILL THEY USE NO ONE KNOWS FOR SURE DIFFERENT ASSUMPTIONS ABOUT THESE AND MYRIAD OTHER FACTORS CAN RESULT IN ANSWERS THAT DIVERGE BY BILLIONS IF NOT TRILLIONS OF DOLLARS SO IT IS THAT THE GOVERNMENT PERPLEXED HAS BEEN EXAMINING THE EXAMINERS ONE STUDY BY CONGRESS'S OFFICE OF TECHNOLOGY ASSESSMENT WHICH LOOKED AT THE DIFFERING ANALYSES OF THE CANADIAN STYLE HEALTH PLAN IS TITLED AN INCONSISTENT PICTURE ANOTHER A PAPER PREPARED BY MS. CITRO AND ERIC MANUSHEK OF UNIVERSITY OF ROCHESTER ASKS WHY ARE THE NUMBERS SO DIFFERENT ONE REASON THE NUMBERS ARE DIFFERENT IS THAT AGAIN THE ASSUMPTIONS ARE TOO IN THEIR ANALYSIS OF THE CANADIAN STYLE HEALTH PLAN BOTH LEWIN VHI A UNIT OF MANAGED CARE CONCERN VALUE HEALTH INCORPORATED AND THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE CALCULATED THE ADMINISTRATIVE COSTS THE U. S. WOULD SAVE IF IT ADOPTED CANADA'S PROGRAM BUT THE INSTITUTE ADDED A FURTHER AND QUITE SIGNIFICANT ASSUMPTION THAT THE U. S. WOULD DRIVE DOWN ITS OVERALL HEALTH CARE SPENDING TO CANADA'S LEVEL AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT WHICH WOULD BE ABOUT A THIRTY PERCENT DROP WHILE THE INSTITUTE ACKNOWLEDGES THAT ISN'T REALISTIC QUOTE WE DID IT TO SEE WHAT WERE THE POTENTIAL SAVINGS IF WE HAD A SYSTEM THAT COSTS US AS LITTLE AS THE CANADIANS DID QUOTE SAYS THE INSTITUTE'S PRESIDENT JACK MEYER THE RESULT OF THAT ASSUMPTION IS THE HUGE DIFFERENCE IN THE TWO ESTIMATES THE SAME PROBLEM CROPS UP IN COMPETING MODELS OF THE CLINTON HEALTH PLAN TAKE FOR EXAMPLE THAT QUESTION ABOUT WHETHER H. M. O.S WOULD OR WOULDN'T BE LESS COSTLY THAN TRADITIONAL FEE FOR SERVICE PLANS LEWIN VHI ASSUMED NO THE CLINTON ADMINISTRATION ASSUMED YES AND WHAT ABOUT THE COST OF INSURING THE PREVIOUSLY UNINSURED AGAIN A WIDE DIFFERENCE OF OPINION BETWEEN LEWIN VHI AND THE ADMINISTRATION WITH THE CLINTON FORECASTERS COMING IN ON THE LOW SIDE WE JUST DISAGREED SAYS KENNETH E. THORPE DEPUTY ASSISTANT SECRETARY FOR HEALTH POLICY WHO COORDINATED THE WHITE HOUSE'S MODEL BASED ON ITS ASSUMPTIONS THE ADMINISTRATION FIGURED THAT OVER FIVE YEARS ITS PLAN WOULD CUT ABOUT FIFTY EIGHT BILLION DOLLARS FROM AMERICA'S BUDGET DEFICIT MORE THAN DOUBLE THE TWENTY FIVE BILLION DOLLAR FIGURE LEWIN ESTIMATED EVEN WITHIN THE WHITE HOUSE THOUGH THERE ISN'T ALWAYS UNANIMITY WHEN TWO DIFFERENT HEALTH CARE MODELING GROUPS IN THE ADMINISTRATION FOUND BIG DIFFERENCES IN THEIR COST FORECASTS FINGERS WAGGED SOME OBSERVERS FELT THAT ONE ORGANIZATION WAS PRODUCING NUMBERS MORE POLITICALLY CORRECT THAN ANOTHER SAYS DEAN FARLEY A SENIOR RESEARCH MANAGER AT THE AGENCY FOR HEALTH CARE POLICY AND RESEARCH IN FACT HE SAYS WHEN THE TWO GROUPS COMPARED NOTES THEY FOUND THAT WHAT THEY DISAGREED ON WASN'T THE FUTURE BUT THE PRESENT THE TWO HAD VERY DIFFERENT ESTIMATES OF WHAT IS BEING SPENT TO CARE FOR UNINSURED PEOPLE TODAY OUTDATED RESEARCH ALSO CAUSES PROBLEMS SOME OF THE MOST EXTENSIVE RESEARCH COMPARING H. M. O.S WITH FEE FOR SERVICE PLANS WAS DONE BY RAND CORPORATION IN THE LATE NINETEEN SEVENTIES AND EARLY NINETEEN EIGHTIES EVEN TODAY MANY MODELERS BASE SOME OF THEIR ASSUMPTIONS ON RAND'S RESULTS BUT TIMES HAVE CHANGED AND SO HAVE CONDITIONS IN THE HEALTH CARE MARKETPLACE BACK WHEN RAND DID ITS STUDY FOR EXAMPLE IT WAS EXAMINING AN EARLY FORM OF H. M. O. THAT HAD DOCTORS PRACTICING TOGETHER AS A GROUP TODAY HOWEVER LINKED NETWORKS OF INDIVIDUAL DOCTORS ARE THE MORE PREVALENT H. M. O. THAT DIFFERENCE MAY AFFECT COSTS IT'S RISKY TO ASSUME THAT THE PAST IS PROLOGUE TO THE FUTURE SAYS MR. MEYER AT THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE WHAT'S MORE THE SHEER VOLUME OF DATA AND THE COMPLEXITY OF CALCULATIONS INVOLVED OFTEN RESULT IN FLAWS CREEPING INTO BIG MODELS WE HAVE ERRORS IN THE ORIGINAL DATA SETS FORECASTING ERRORS JUDGMENTS THAT HAVE TO BE MADE ABOUT IMPORTANT PARAMETERS ESTIMATES THAT ECONOMISTS PULL OUT OF THEIR HEADS SAYS JACK RODGERS DIRECTOR OF HEALTH POLICY ANALYSIS AT PRICE WATERHOUSE THE ACCOUNTING FIRM WHAT COMES OUT THE OTHER END THE ANSWER IS TRULY THAT IT'S VERY COMPLICATED AND NO ONE KNOWS THE ANSWER QUOTE SO THE FORECASTS AND MODELING DATA FLOODING THE HEALTH CARE DEBATE MAY HELP LAWMAKERS VAGUELY SKETCH OUT THE HORIZON BUT LITTLE MORE IN THE END THE CHIEF THING THE MODELS CONFIRM IS SOMETHING LEGISLATORS ALREADY KNEW THE DIFFICULTIES WE HAVE IN ESTIMATING ARE A METAPHOR FOR THE DIFFICULTIES OF DOING THESE REFORMS IN THE FIRST PLACE SAYS JOHN SHEILS VICE PRESIDENT OF LEWIN VHI THIS IS A MASSIVE RESTRUCTURING AND WE DON'T KNOW HOW IT'S GOING TO COME OUT UNITED NATIONS SECRETARY GENERAL BOUTROS BOUTROS GHALI INCREASED THE PRESSURE FOR WESTERN MILITARY ACTION IN BOSNIA FOLLOWING THE WEEKEND SHELLING OF A SARAJEVO MARKET THAT KILLED SIXTY EIGHT PEOPLE AND WOUNDED MORE THAN TWO HUNDRED MR. BOUTROS GHALI ASKED THE NORTH ATLANTIC TREATY ORGANIZATION TO GIVE HIM THE POWER TO ORDER NATO AIR STRIKES ON ARTILLERY OR MORTAR POSITIONS AROUND SARAJEVO WHICH IS UNDER SIEGE BY BOSNIAN SERBS WHETHER THE ALLIANCE WILL LAUNCH THE LONG THREATENED AIR STRIKES OR SIMPLY INDULGE IN MORE HAND WRINGING AND RECRIMINATIONS ISN'T KNOWN MR. BOUTROS GHALI IS APPARENTLY MORE INTERESTED IN USING THE NEW AUTHORITY TO DETER FURTHER SERB ATTACKS AGAINST CIVILIANS THAN IN LAUNCHING AN IMMEDIATE RETALIATION FOR SATURDAY'S SLAUGHTER SPEAKING AFTER A MEETING WITH HIS TOP FOREIGN POLICY ADVISERS PRESIDENT CLINTON RULED OUT ANY IMMEDIATE MILITARY ACTION TELLING REPORTERS THAT THE U. S. FIRST HAD TO CONSULT WITH QUOTE RELUCTANT QUOTE ALLIES AND QUOTE GIVE THE UNITED NATIONS A CHANCE TO CONFIRM RESPONSIBILITY QUOTE FOR THE ATTACK THAT'S NOT TO SAY THERE WON'T BE RETALIATION BECAUSE WE CERTAINLY DISCUSSED IT IN CONSIDERABLE LENGTH TODAY MR. CLINTON SAID BUT HE EMPHASIZED THAT THE U. S. DIDN'T HAVE THE AUTHORITY TO ACT ON ITS OWN AND HE NOTED THAT THOSE COUNTRIES WITH PEACEKEEPERS ON THE GROUND WERE FAR MORE RELUCTANT TO LAUNCH AIR STRIKES MR. BOUTROS GHALI'S MOVE DID SIGNAL A MORE ASSERTIVE ATTITUDE ON THE PART OF FRANCE WHICH HAS THE LARGEST CONTINGENT OF PEACEKEEPERS ON THE GROUND HE'S RESPONDING TO HIS PRINCIPAL TROOP CONTRIBUTOR SAID A U. S. OFFICIAL IN THE PAST MR. BOUTRO GHALI HAS BEEN SEEN AS AN OBSTACLE TO MILITARY ACTION THE U. N. LEADER HAS REFUSED TO USE SIMILAR AUTHORITY TO THAT HE IS CURRENTLY SEEKING TO ORDER AIR STRIKES TO PROTECT U. N. TROOPS ON THE GROUND BUT WITH FRANCE'S CHANGE OF HEART MR. BOUTROS GHALI MAY TAKE A DIFFERENT APPROACH HOWEVER OTHER ALLIES REMAIN RELUCTANT THE KEY DECISIONS REST WITH THE NORTH ATLANTIC COUNCIL NATO'S POLITICAL ARM WHICH WILL MEET THIS WEEK BRITAIN AND CANADA TWO OTHER KEY TROOP CONTRIBUTORS CONTINUE TO OPPOSE THE IDEA ARGUING THAT AIR STRIKES WOULD INCREASE THE RISK TO THEIR PEACEKEEPERS AND DERAIL RELIEF DELIVERIES AND POLITICAL NEGOTIATIONS TO END THE CONFLICT BRITISH FOREIGN SECRETARY DOUGLAS HURD WARNED YESTERDAY THAT A RETALIATORY AIR STRIKE MAY YIELD SIMPLY ONE DAY OF SATISFACTION FOLLOWED NOT BY THE LIFTING OF THE SIEGE BUT BY ITS INTENSIFICATION A SENIOR U. S. OFFICIAL SAID YESTERDAY THAT THE ADMINISTRATION MAY NOW BE WILLING TO BECOME MORE INVOLVED IN NEGOTIATIONS TO BRING AN END TO THE BRUTAL BALKAN CONFLICT ONE IDEA THE OFFICIAL SAID WOULD BE TO SEND A SPECIAL ENVOY TO SARAJEVO TO HELP THE MUSLIM LED GOVERNMENT CRAFT A NEW PEACE SETTLEMENT MAP UNTIL NOW THE U. S. HAS REFUSED EUROPEAN CALLS TO JOIN IN THE NEGOTIATING PROCESS SAYING IT WOULDN'T PRESS THE BOSNIAN MUSLIMS TO GO ALONG WITH PARTICULAR PROPOSALS SECRETARY OF STATE WARREN CHRISTOPHER SPENT MUCH OF SUNDAY DISCUSSING BOSNIA WITH NATO ALLIES A SENIOR OFFICIAL DESCRIBED MR. CHRISTOPHER'S APPROACH AS SOMEWHERE BETWEEN PRESSING FOR AIR STRIKES AND SOLICITING OPINIONS A TOP EUROPEAN OFFICIAL MEANWHILE SAID THAT THE CLINTON ADMINISTRATION'S CREDIBILITY ON BOSNIA IS EXTREMELY LOW THESE DAYS ESPECIALLY AFTER IT REFUSED EUROPEAN REQUESTS THAT IT GET MORE DEEPLY INVOLVED IN PEACE NEGOTIATIONS SENATE REPUBLICAN LEADER BOB DOLE OF KANSAS SPEAKING ON N. B. C. TELEVISION SAID THAT PRESIDENT CLINTON WOULD HAVE STRONG BIPARTISAN SUPPORT IN THE CONGRESS IF HE DECIDED TO LAUNCH AIR STRIKES WHEN TOLD OF CONGRESSIONAL CALLS FOR AIR STRIKES MR. CLINTON RESPONDED QUOTE IT'S VERY WELL FOR THESE MEMBERS OF CONGRESS TO SAY THAT THEY DON'T HAVE CONSTITUENTS ON THE GROUND QUOTE AMERICAN C. ONE HUNDRED THIRTY TRANSPORT PLANES FERRIED MEDICINE AND SUPPLIES INTO SARAJEVO YESTERDAY AND FLEW OUT DOZENS OF THE WOUNDED FOR MEDICAL TREATMENT AT A U. S. MILITARY HOSPITAL IN GERMANY IN ALL TWO HUNDRED PEOPLE WERE WOUNDED IN SATURDAY'S ATTACK THE SECOND IN TWO DAYS ON FRIDAY A SERB LAUNCHED MORTAR BARRAGE KILLED TEN PEOPLE LINED UP FOR FOOD IN SARAJEVO FLIGHT INTERNATIONAL GROUP INCORPORATED SAID IT AND THREE OF ITS SUBSIDIARIES HAVE FILED FOR REORGANIZATION UNDER CHAPTER ELEVEN OF THE U. S. BANKRUPTCY CODE THE AVIATION SERVICES COMPANY SAID IT HAS QUOTE REACHED CONSENSUS IN PRINCIPLE QUOTE WITH THE MAJORITY OF ITS INSTITUTIONAL LENDERS FOR A DEBT RESTRUCTURING IT ALSO SAID IT EXPECTS TO EMERGE FROM REORGANIZATION AS A PROFITABLE COMPANY COMPANY OFFICIALS COULDN'T BE REACHED FOR FURTHER DETAILS THE COMPANY'S STOCK WAS DELISTED BY THE NASDAQ STOCK MARKET SEVERAL YEARS AGO WITH SUGAR AND COFFEE AND FAT BUT WE CAN'T EVEN HAVE THAT AND WALLETS OVER HERE TO WIT ON THE NINETEEN FORTY NINE INDEPENDENCE DAY THE SAME NEWSPAPER REPORTED A SPEECH BY KIM IL SUNG IN WHICH HE STATED THAT THE NINETEEN FIFTY INDEPENDENCE DAY WOULD BE CELEBRATED IN SEOUL INTERESTING IS IT NOT SINCE REFUSING LAST MONTH TO SERVE IN RUSSIA'S INCREASINGLY CONSERVATIVE CABINET YEGOR GAIDAR IS FREQUENTLY ASKED WHETHER PRESIDENT BORIS YELTSIN HAS ABANDONED THE REFORM COURSE MR. GAIDAR SET FOR RUSSIA TWO YEARS AGO QUOTE WHY DON'T YOU ASK HIM YOURSELF QUOTE MR. GAIDAR SUGGESTS IN AN INTERVIEW ADVISED THAT THIS ISN'T POSSIBLE MR. GAIDAR TRIES TO RESPOND CHOOSING HIS WORDS CAREFULLY YELTSIN HASN'T CHANGED HIS ATTITUDE TOWARD MARKET REFORM SAYS THE THIRTY SEVEN YEAR OLD ECONOMIST WHO ONCE WAS MR. YELTSIN'S MOST TRUSTED ADVISER BUT YELTSIN'S ESTIMATIONS OF RUSSIA'S POLITICAL AND SOCIAL REALITIES HAVE CHANGED WHAT THAT MEANS POLITICALLY ISN'T YET CLEAR WHEN MR. GAIDAR AND REFORMIST FINANCE MINISTER BORIS FYODOROV QUIT THE CABINET LAST MONTH THEY LEFT ECONOMIC POLICY FIRMLY IN THE HANDS OF PRIME MINISTER VIKTOR CHERNOMYRDIN WHO IS LIKELY TO SLOW RUSSIA'S MOVE TOWARD THE FREE MARKET THE FOCUS NOW ISN'T SO MUCH ON THE MARKET AS IT IS ON REVIVING STATE INDUSTRIES WITH OLD FASHIONED STATE SUPPORT THE ONLY CHANCE TO BLOCK THE RETURN TO SOVIET STYLE ECONOMICS SEEMS TO RESIDE IN MR. YELTSIN WHO RETAINS SUBSTANTIAL POWERS UNDER RUSSIA'S NEWLY ADOPTED CONSTITUTION YELTSIN IS THE STRONGEST POLITICAL FACTOR IN FAVOR OF REFORM IN RUSSIA SAYS MR. GAIDAR BUT FOR NOW HE SAYS THE PRESIDENT IS STANDING ON THE SIDELINES PASSIVELY WAITING FOR THE GOVERNMENT TO ANNOUNCE ITS NEW PROGRAMS WHAT HAPPENED TO BORIS YELTSIN DOES HE STILL SUPPORT RUSSIA'S RADICAL ECONOMIC REFORMS THESE ARE THE MILLION DOLLAR QUESTIONS FOR RUSSIA'S ECONOMY AND ONES THAT MR. GAIDAR CAN'T ANSWER THE PRESIDENT HIS AIDES SAY WAS STUNG BY THE RESULTS OF THE DECEMBER TWELFTH PARLIAMENTARY ELECTION IN THE VOTE THE PRO REFORM PARTY RUSSIA'S CHOICE HEADED BY MR. GAIDAR FARED FAR WORSE THAN ANTICIPATED THE MAIN BENEFICIARIES WERE THE REVIVED COMMUNIST PARTY AND THE ULTRANATIONALIST PARTY OF VLADIMIR ZHIRINOVSKY MR. GAIDAR BELIEVES VOTERS DIDN'T ACTUALLY REJECT MARKET REFORM RATHER HE SAYS THEY VOTED AGAINST THE REFORMERS TO PROTEST RISING CRIME AND OFFICIAL CORRUPTION NONETHELESS THE POLITICAL WINDS HAVE SHIFTED AND MR. GAIDAR BECAME A CASUALTY SENSING THE CONSERVATIVE SHIFT HE DECIDED TO QUIT THE CABINET ON JANUARY THIRTEENTH DURING THE VISIT TO RUSSIA OF PRESIDENT BILL CLINTON TO AVOID AWKWARD TIMING MESSRS YELTSIN AND GAIDAR AGREED TO POSTPONE THE ANNOUNCEMENT UNTIL JUST AFTER MR. CLINTON DEPARTED THAT ACTUALLY PROVED EMBARRASSING FOR MR. CLINTON SINCE THE ADMINISTRATION SPENT MOST OF ITS TIME IN MOSCOW LAUDING THE STRENGTH OF RUSSIA'S REFORM TEAM ONLY TO SEE IT FALL APART AS SOON AS THE PRESIDENTIAL VISIT ENDED THE TIMING WAS UNFORTUNATE CONCEDES MR. GAIDAR SITTING IN A SPACIOUS OFFICE IN HIS ECONOMIC THINK TANK IN CENTRAL MOSCOW THIS IS MR. GAIDAR'S SECOND FALL FROM POWER A YEAR AGO WHEN MR. YELTSIN PROPOSED HIM AS PRIME MINISTER PARLIAMENT REFUSED TO CONFIRM THE CHOICE MR. YELTSIN ABANDONED MR. GAIDAR AND TAPPED MR. CHERNOMYRDIN A FORMER SOVIET GAS INDUSTRY BOSS SEVERAL MONTHS LATER MR. GAIDAR REJOINED THE GOVERNMENT AS A FIRST DEPUTY TO MR. CHERNOMYRDIN MR. YELTSIN'S RECENT INACTIVITY HAS BREATHED NEW LIFE INTO THE ART OF KREMLIN WATCHING HE HAS BEEN PRONE IN THE PAST TO PROLONGED AND UNEXPLAINED PERIODS OF PASSIVITY BUT IT SEEMS NOTEWORTHY THAT HE HASN'T COME TO THE AID OF HIS BELEAGUERED REFORM TEAM INDEED MR. GAIDAR NOTES THAT MR. YELTSIN MADE NO EFFORT TO BLOCK HIS RESIGNATION LAST MONTH MR. YELTSIN IS DUE FINALLY TO WEIGH IN ON THE DEBATE NEXT WEEK DURING HIS FIRST SPEECH TO THE STATE DUMA THE LOWER HOUSE OF PARLIAMENT AIDES TO MR. YELTSIN ADVISE THE CURIOUS TO WATCH THE SPEECH BUT SEEM UNCLEAR AS TO WHAT MR. YELTSIN WILL SAY IT MAY WELL BE THAT MR. YELTSIN WILL BLESS MR. CHERNOMYRDIN'S EFFORTS TO LAUNCH A MORE CAUTIOUS REFORM PROGRAM IF THE PROGRAM SUCCEEDS MR. YELTSIN COULD TRY TO SHARE THE CREDIT IF IT PRODUCES A MUCHFEARED OUTBREAK OF HYPERINFLATION DEFINED AS MONTHLY INFLATION OF MORE THAN FIFTY PERCENT MR. YELTSIN MAY MOVE TO REMOVE HIS PRIME MINISTER AND BRING BACK THE REFORMERS WOULD MR. GAIDAR SERVE IN THE GOVERNMENT FOR A THIRD TIME QUOTE WE'LL SEE QUOTE HE SAYS WITH A SMILE UNLIKE MR. FYORODOV WHO BLASTED THE ONGOING SHIFT IN POLICY AS AN ECONOMIC COUP MR. GAIDAR IS HESITANT TO CRITICIZE THE NEW GOVERNMENT AT LEAST UNTIL IT OUTLINES ITS PLANS FOR THIS YEAR NONETHELESS HE WARNS OF THE RISING POWER OF THE LOBBIES THAT HE ONCE TRIED WITH ONLY PARTIAL SUCCESS TO SMASH THE AGRICULTURE DEFENSE AND ENERGY SECTORS TODAY THESE LOBBIES ARE REPRESENTED IN THE TOP RANKS OF GOVERNMENT IN THE END IT MAY BE UP TO MR. YELTSIN TO TRY TO BLOCK DEMANDS FOR CHEAP INFLATIONARY CREDITS TO RUSSIA'S AILING ECONOMIC SECTORS THE NEW CONSTITUTION PUTS IN THE HANDS OF THE PRESIDENT WAYS TO FIGHT THE LOBBYISTS' PRESSURE MR. GAIDAR SAYS METHODS WHICH INCLUDE THE POWER TO VETO LEGISLATION AND TO BLOCK EXPENDITURES THE NEW YORK STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING TWO INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED TEN NEW LISTINGS INCLUDING SEVEN INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS MORGAN STANLEY AFRICA INVESTMENT FUND INCORPORATED NEW YORK A CLOSED END FUND UNDER AFF AND WALDEN RESIDENTIAL PROPERTIES INCORPORATED DALLAS A REAL ESTATE INVESTMENT TRUST WDN THE BIG BOARD ALSO BEGAN TRADING THE CLASS A COMMON STOCK OF HEALTH SYSTEMS INTERNATIONAL INCORPORATED WOODLAND HILLS CALIFORNIA UNDER MQ A MANAGED HEALTH CARE COMPANY FORMED BY THE MERGER OF QUALMED INCORPORATED AND H. N. MANAGEMENT HOLDINGS INCORPORATED AND THE AMERICAN DEPOSITARY SHARES OF EMPRESAS LA MODERNA S. A. MONTERREY MEXICO A CIGARETTE MAKER ELM THE COMPANY'S SHARES ALSO TRADE ON THE MEXICAN STOCK EXCHANGE THE NASDAQ BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS ON ITS NATIONAL MARKET SYSTEM DIGITAL LINK CORPORATION SUNNYVALE CALIFORNIA A MAKER OF HIGH SPEED DIGITAL ACCESS PRODUCTS DLNK EQUITY MARKETING INCORPORATED NEW YORK A TOY AND GIFT MAKER EMAK ESMOR CORRECTIONAL SERVICES INCORPORATED MELVILLE N. Y. AN OPERATOR OF CORRECTIONAL AND DETENTION FACILITIES ESMR IGEN INCORPORATED ROCKVILLE MARYLAND A MAKER OF DIAGNOSTIC SYSTEMS BASED ON ELECTROCHEMILUMINESCENCE IGEN MAPINFO CORPORATION TROY N. Y. A MAKER OF DESKTOP MAPPING SOFTWARE AND OTHER PRODUCTS MAPS PARCPLACE SYSTEMS INCORPORATED SUNNYVALE CALIFORNIA A MAKER OF OBJECT ORIENTED APPLICATION DEVELOPMENT TOOLS PARQ AND U. S. A. MOBILE COMMUNICATIONS HOLDINGS INCORPORATED CINCINNATI A PAGING SERVICES COMPANY USAM NASDAQ ALSO BEGAN TRADING WARRANTS OF ECOGEN INCORPORATED LANGHORNE PENNSYLVANIA UNDER EECNW CLASS B. WARRANTS OF HEALTHCARE IMAGING SERVICES INCORPORATED MIDDLETOWN N. J. HISSZ AND COMMON SHARES OF ROANOKE GAS COMPANY ROANOKE VIRGINIA RGCO A NATURAL GAS DISTRIBUTION AND SALES COMPANY THE AMERICAN STOCK EXCHANGE WILL BEGIN TRADING OPTIONS ON THE AMERICAN DEPOSITARY RECEIPTS OF EMPRESA NACIONAL DE ELECTRICIDAD S. A. AND REPSOL S. A. TOMORROW AMEX ALSO LISTED BEAR STEARNS AND COMPANIES EQUITY LINKED TERM NOTES AMEX WILL ALSO BEGIN TRADING OPTIONS ON CONTINENTAL AIRLINES INCORPORATED AND WINNEBAGO INDUSTRIES INCORPORATED TOMORROW AMEX'S EMERGING COMPANY MARKETPLACE BEGAN TRADING WIZ TECHNOLOGY INCORPORATED THE STOCK PREVIOUSLY TRADED OVER THE COUNTER THE CHICAGO BOARD OPTIONS EXCHANGE WILL BEGIN TRADING OPTIONS ON THE A. D. R.'S OF EMPRESA NACIONAL DE ELECTRICIDAD S. A. AND ON THE A. D. R.'S OF REPSOL S. A. TOMORROW THE C. B. O. E. BEGAN TRADING OPTIONS ON THE FOLLOWING STOCKS ALIAS RESEARCH INCORPORATED CARL KARCHER ENTERPRISES INCORPORATED GUPTA CORPORATION HEALTH SYSTEMS INTERNATIONAL INCORPORATED MICROAGE INCORPORATED MILLICOM INTERNATIONAL CELLULAR S. A. AND WESTCOTT COMMUNICATIONS INCORPORATED TOMORROW THE C. B. O. E. WILL BEGIN TRADING OPTIONS ON CONTINENTAL AIRLINES CLASS B. AND WINNEBAGO INDUSTRIES INCORPORATED TODAY THE C. B. O. E. WILL LIST OPTIONS ON THE NASDAQ ONE HUNDRED INDEX DIRECT SPANISH INVESTMENT ABROAD IN NINETEEN NINETY THREE FELL FIFTEEN PERCENT TO FOUR HUNDRED FORTY TWO POINT EIGHT FOUR BILLION PESETAS THREE POINT ONE MILLION DOLLARS FROM FIVE HUNDRED EIGHTEEN POINT OH SIX BILLION PESETAS IN NINETEEN NINETY TWO THE FINANCE MINISTRY SAID THE OVERALL DECLINE WAS LESS THAN THE EIGHTEEN PERCENT DROP SEEN IN INVESTMENT FROM SIX HUNDRED THIRTY THREE POINT TWO OH BILLION PESETAS IN NINETEEN NINETY ONE THE MINISTRY NOTED THE BIGGEST PROPORTION OF DIRECT SPANISH INVESTMENT ABOUT FIFTY SEVEN PERCENT WENT TO EUROPEAN UNION COUNTRIES COMPARED WITH FIFTY SIX PERCENT IN NINETEEN NINETY TWO ABOUT FIFTEEN PERCENT OF SPANISH INVESTMENT ABROAD WENT TO LATIN AMERICA SHARPLY UP FROM NINETEEN NINETY TWO LEVELS OF THREE POINT FOUR PERCENT AND NEAR NINETEEN NINETY ONE LEVELS OF TWELVE PERCENT TAX HAVENS ATTRACTED THIRTEEN PERCENT OF DIRECT SPANISH INVESTMENT COMPARED WITH EIGHT POINT SEVEN PERCENT IN NINETEEN NINETY TWO WHILE AFRICAN COUNTRIES DREW FOUR POINT SIX PERCENT OF INVESTMENT COMPARED WITH SIX POINT SIX PERCENT IN NINETEEN NINETY TWO TO UNDERSTAND JAPAN'S LATEST POLITICAL UPROAR LOOK INTO THE CRYSTAL BALL OF THE NATION'S POWERFUL ECONOMIC PLANNERS IN THE YEAR TWO THOUSAND TWENTY THE FINANCE MINISTRY SEES A JAPAN THAT IS ALL GRAY A NATION IN WHICH TWO WORKERS MUST SUPPORT EACH RETIREE DOWN FROM FIVE PER PENSIONER TODAY ITS SOLUTION INCREASE SALES LEVIES NOW DESPITE TODAY'S RECESSION SO THAT JAPAN CAN BROADEN ITS TAX BASE PROMISING TO BOOST LEVIES IN THE MIDDLE OF A RECESSION MAY SEEM CRAZY TO AMERICANS BUT PRIME MINISTER MORIHIRO HOSOKAWA DELIVERED A TAX REFORM BLUEPRINT LAST WEEK THAT WOULD CUT INCOME TAXES NOW TO BOOST THE ECONOMY AND MAKE UP THE DIFFERENCE LATER BY MORE THAN DOUBLING THE NATIONAL CONSUMPTION TAX MR. HOSOKAWA'S TAX INCREASE ANNOUNCEMENT TRIGGERED AN UPRISING IN HIS SEVEN PARTY COALITION FACED WITH THE PROSPECT OF MASS DEFECTIONS AND POSSIBLY THE GOVERNMENT'S COLLAPSE MR. HOSOKAWA DROPPED THE PLAN HE HOPES TO FIND SOME SORT OF COMPROMISE TODAY EVEN IF MR. HOSOKAWA MANAGES TO STRIKE A SETTLEMENT THE FIGHT OVER TAX POLICY IS REVEALING IN THE FACE OF STRONG PRESSURE TO STIMULATE THE ECONOMY JAPAN'S DOMINANT IMPULSE IS TO SAVE FOR ITS OLD AGE THIS OBSESSION HAS BIG IMPLICATIONS FOR THE U. S. TIGHT SPENDING ALREADY HAS PROLONGED JAPAN'S RECESSION MANY ECONOMISTS ARGUE IT ALSO INTENSIFIES THE POLITICAL CONFUSION AT HOME DEFLECTING JAPAN'S ATTENTION FROM CRITICAL TRADE NEGOTIATIONS WITH WASHINGTON AND TOKYO'S TIGHTWAD FISCAL POLICIES ARE A MAJOR FACTOR SUSTAINING ITS HUGE TRADE SURPLUSES THE MINISTRY'S QUOTE EMPHASIS ON GOVERNMENT SAVINGS HAS BECOME COUNTERPRODUCTIVE QUOTE SAYS JAMES VESTAL ECONOMIST AT BARCLAYS DE ZOETE WEDD IN TOKYO IT SEEMS TO BE USING ITS POWER TO ENSURE A BUDGET SURPLUS SAYS MR. VESTAL A PROGRAM HE TERMS MISGUIDED THE PROBLEMS POSED BY AN ELDERLY POPULACE HAVE BEEN EATING AT JAPANESE PLANNERS SINCE NINETEEN SEVENTY THAT'S WHEN CITIZENS AGED SIXTY FIVE AND OVER FIRST ACCOUNTED FOR SEVEN PERCENT OF THE POPULATION CONSIDERED A BENCHMARK OF AN AGED SOCIETY SINCE THEN JAPAN'S LEADERS HAVE BEEN DRILLING INTO VOTERS' HEADS THE GRAVITY OF THE DEMOGRAPHIC PROBLEM SIRENS SOUNDED IN NINETEEN EIGHTY NINE WHEN THE NUMBER OF CHILDREN BORN TO THE AVERAGE JAPANESE WOMAN IN HER LIFETIME FELL TO ONE POINT FIVE SEVEN BELOW THE PACE NEEDED TO SUSTAIN THE POPULATION THE PUBLIC HAS ABSORBED THE LESSON IN A NINETEEN NINETY ONE GOVERNMENT SURVEY EIGHTY SIX PERCENT OF THOSE POLLED SAID THEY WERE CONCERNED ABOUT JAPAN'S AGING POPULATION NOTABLY THE WORRY CITED BY MOST RESPONDENTS WAS THE FISCAL HEALTH OF THE PENSION SYSTEM THE FINANCE MINISTRY'S OWN PET ANXIETY WITH THAT KIND OF PUBLIC SUPPORT FEW POLITICIANS DARE QUESTION THE MINISTRY'S REASONING EVEN THE SOCIALISTS WHO HAVE LONG OPPOSED THE SALES TAX SAY THEY AGREE THAT JAPAN NEEDS HIGHER VALUE ADDED LEVIES GIVEN THE UPCOMING AGING SOCIETY WE DON'T THINK THE CURRENT TAX SYSTEM IS RIGHT SAYS HARUMICHI HOSOYA A MEMBER OF THE SOCIALISTS' TAX POLICY COMMITTEE THE DEMOGRAPHIC DISASTER SCENARIO HAS ENABLED THE MINISTRY TO PUSH ITS PARSIMONIOUS FISCAL POLICIES IN THE NINETEEN SEVENTIES AND NINETEEN EIGHTIES JAPAN'S PORK BARREL POLITICIANS RAN UP A STRING OF HUGE BUDGET DEFICITS EVENTUALLY THE MINISTRY SHAMED LEGISLATORS INTO REINING IN THEIR SPENDING THAT FREED THE BUREAUCRATS TO START SALTING AWAY CASH FOR THE FUTURE FROM NINETEEN EIGHTY SEVEN TO NINETEEN NINETY TWO AS THE U. S. GOVERNMENT'S DEFICIT BALLOONED JAPAN RACKED UP LARGE SURPLUSES THE DOMINANCE OF THIS SCENARIO EXPLAINS WHY MR. HOSOKAWA AT GREAT POLITICAL RISK BACKED THE MINISTRY'S AGENDA WE HAVE PREPARED THE VISION QUITE CAREFULLY SAYS ONE FINANCE MINISTRY BUDGET OFFICIAL YET FINANCE MINISTRY OFFICIALS ALSO ARE CONCERNED WITH THE TRADE IMPLICATIONS OF THEIR FISCAL POLICY AND DENY THEY ARE TRYING TO PILE UP BUDGET SURPLUSES THAT IS WHY LAST WEEK DURING THE CURRENT TRADE NEGOTIATIONS WITH WASHINGTON TOP MINISTRY LEADERS CALLED IN A GROUP OF U. S. REPORTERS TO ARGUE THAT JAPAN ISN'T AS FRUGAL AS IT'S CRACKED UP TO BE THE OFFICIALS HANDED OUT A DOCUMENT CONTAINING BUDGET BALANCE PROJECTIONS MADE BY THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT THE FIGURES SHOW THAT JAPAN WILL RUN A DEFICIT IN ITS GENERAL GOVERNMENT BUDGET COMBINING ITS SOCIAL SECURITY CENTRAL AND LOCAL GOVERNMENT ACCOUNTS IN NINETEEN NINETY THREE NINETEEN NINETY FOUR AND NINETEEN NINETY FIVE WHAT'S MORE JAPAN'S DEFICIT IN NINETEEN NINETY FIVE WILL EXCEED THAT OF THE PROFLIGATE U. S. AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT JAPAN'S FISCAL BALANCE IS UNDOUBTEDLY WORSENING AS TAX REVENUE FALLS AND THE GOVERNMENT SPENDS MORE TO SPUR THE ECONOMY WHAT THE OFFICIALS NEGLECTED TO MENTION HOWEVER WERE THE O. E. C. D.'S ESTIMATES OF JAPAN'S SO CALLED STRUCTURAL BALANCE A MEASURE OF WHAT THE BALANCE WOULD BE IF THE ECONOMY WERE RUNNING AT FULL EMPLOYMENT ON THAT BASIS SAYS THE O. E. C. D. JAPAN WILL RUN A SURPLUS IN NINETEEN NINETY FIVE SOME ECONOMISTS CONSIDER THE STRUCTURAL BALANCE A BETTER INDICATOR OF UNDERLYING FISCAL HEALTH THE DISTINCTION MATTERS GREATLY TO WASHINGTON SINCE A HEALTHIER BALANCE SHEET WOULD MEAN JAPAN COULD SPLURGE A BIT MORE FRUGALITY LEADS THE JAPANESE TO CONSUME FEWER GOODS AND SERVICES THAN THEY PRODUCE AND HENCE RUN A TRADE SURPLUS WITH THE U. S. AND OTHER NATIONS THE FINANCE MINISTRY'S REPLY TO SUCH CONCERNS IS SIMPLE WAIT A FEW DECADES THE TRADE SURPLUS WILL TAKE CARE OF ITSELF MASAYOSHI KANABAYASHI CONTRIBUTED TO THIS ARTICLE J. CLAYBURN LA FORCE JUNIOR SIXTY FIVE YEARS OLD EMERITUS DEAN AND PROFESSOR AT THE JOHN E. ANDERSON GRADUATE SCHOOL OF MANAGEMENT AT THE UNIVERSITY OF CALIFORNIA LOS ANGELES WAS ELECTED A DIRECTOR OF THIS MAKER OF HIGHLY ENGINEERED BEARINGS AND ALLOY STEELS HE SUCCEEDS RICHARD A. GULLING A FORMER VICE PRESIDENT OF FINANCE AND A DIRECTOR SINCE NINETEEN SEVENTY SIX WHO RETIRED FROM THE BOARD IN COMPLIANCE WITH ITS RETIREMENT POLICY TIMKEN'S BOARD REMAINS AT TWELVE MEMBERS OF ALL THE TANTALIZING GLIMPSES OF THE HERMIT KINGDOM OF NORTH KOREA BILLY GRAHAM'S MAY BE THE MOST TANTALIZING OF ALL FOR THE AMERICAN EVANGELIST WHO JUST CONCLUDED A VISIT TO PYONGYANG AT THE INVITATION OF THE NORTH KOREANS PRESIDENT KIM IL SUNG ISN'T THE DEMON HE APPEARS TO BE TO THE REST OF THE WORLD QUOTE HE CAN BE TOUGH BUT HE HAS A TENDER PLACE IN HIS HEART QUOTE MR. GRAHAM SAID IN AN INTERVIEW THURSDAY NO SAINT EVER SPOKE MORE KINDLY OF ANY SINNER AND WHILE AN UNSAINTLY REPORTER PRAYS SHE MAY BE FORGIVEN FOR THINKING LESS CHARITABLE THOUGHTS OF THE MAN WHO RULES WITH AN IRON FIST THE MOST TOTALITARIAN NATION LEFT ON EARTH IT IS NEVERTHELESS NOTABLE THAT MR. KIM WOULD USE A MAN OF GOD TO CONVEY A MESSAGE TO PRESIDENT CLINTON MR. GRAHAM WON'T SAY WHAT THAT MESSAGE IS BUT HE CHARACTERIZES ITS TONE AS POSITIVE AN AIDE TO MR. GRAHAM WAS TO DELIVER THE MESSAGE TO THE WHITE HOUSE FRIDAY MR. GRAHAM ALSO CARRIED A PRIVATE MESSAGE FROM MR. CLINTON THAT MR. KIM FOUND VERY INTERESTING THE RECLUSIVE NORTH KOREAN PRESIDENT IS SEEN IN PUBLIC ABOUT AS OFTEN AS CHINA'S DENG XIAOPING AND RUMORS ABOUT THE STATE OF HIS HEALTH ABOUND AT A NEWS CONFERENCE IN HONG KONG MR. GRAHAM DESCRIBED MR. KIM AS VIGOROUS AND IN GOOD HEALTH A GROWTH ON HIS NECK THAT OTHER VISITORS HAVE REPORTED AND THAT DOESN'T SHOW UP IN THE CAREFULLY STAGED PHOTOS THAT LEAVE THE COUNTRY HAS BEEN THERE BOTH TIMES I'VE BEEN IN NORTH KOREA SAID MR. GRAHAM MY STRONG IMPRESSION WAS THAT HE CONTINUES TO BE THE DOMINANT FIGURE IN NORTH KOREAN POLITICAL AND SOCIAL LIFE BESIDES THE POLITICAL TOPICS THAT MR. GRAHAM WON'T DIVULGE THE TWO MEN ALSO DISCUSSED MR. KIM'S EARLY EXPOSURE TO CHRISTIANITY AS A BOY THE YOUNG KIM WENT TO CHURCH WITH HIS MOTHER WHO WAS A CHRISTIAN AN EARLY INFLUENCE ON HIS LIFE FROM ABOUT AGE SEVEN WAS A KOREAN PRESBYTERIAN MINISTER MR. GRAHAM PREACHED IN THE CHURCH THAT MR. KIM BUILT IN MEMORY OF HIS MOTHER NEAR HIS BOYHOOD HOME IN CHILGOL ON THE OUTSKIRTS OF PYONGYANG STORIES OF THE INFLUENCE OF CHRISTIANITY ON HIS EARLY LIFE ARE DETAILED IN MR. KIM'S UNFINISHED AUTOBIOGRAPHY WHICH MR. GRAHAM PRAISES AS THE QUOTE EASIEST MEMOIR OR AUTOBIOGRAPHY I'VE EVER READ QUOTE IT READS LIKE A NOVEL HE SAYS YOU CAN'T PUT IT DOWN MR. GRAHAM IS UP TO VOLUME FOUR WHICH ENDS JUST BEFORE THE KOREAN WAR NONE OF THIS IS TO SAY THAT RELIGIOUS FREEDOM EXISTS IN NORTH KOREA QUITE THE CONTRARY IT WASN'T UNTIL THE LATE EIGHTIES THAT MR. KIM PERMITTED THREE CHURCHES TO BE FORMED TWO PROTESTANT ONE CATHOLIC AS WELL AS SOME SMALL CONGREGATIONS THAT MEET IN PRIVATE HOMES STEPHEN LINTON A COLUMBIA UNIVERSITY KOREA SCHOLAR WHO IS TRAVELING WITH MR. GRAHAM SAYS NORTH KOREA OFFICIALLY PLACES THE NUMBER OF CHRISTIANS AT ABOUT TEN THOUSAND THIS COMPARES WITH THE TWENTY FIVE PERCENT TO FIFTY PERCENT OF THE SOUTH KOREAN POPULATION ESTIMATED TO BE CHRISTIAN KOREA HAS A LONG HISTORY OF CHRISTIANITY BEFORE WORLD WAR TWO AT THE TIME THE EIGHTY ONE YEAR OLD MR. KIM WAS GROWING UP PYONGYANG WAS THE CENTER OF MISSIONARY ACTIVITY IN ASIA WHERE IT WAS KNOWN AS THE JERUSALEM OF THE EAST MR. GRAHAM'S WIFE RUTH WHO IS THE DAUGHTER OF MISSIONARIES IN CHINA WENT TO HIGH SCHOOL IN PYONGYANG ALL THAT CHANGED IN THE LATE FORTIES WHEN KIM IL SUNG BACKED BY THE POSTWAR SOVIET OCCUPIERS OF THE NORTH BECAME PRESIDENT AND OUTLAWED RELIGION MANY CHRISTIANS FLED SOUTH BILLY GRAHAM IS IN ASIA ON ONE OF THE CRUSADES THAT HAVE TAKEN HIM TO MORE THAN ONE HUNDRED EIGHTY COUNTRIES OR TERRITORIES FOUR RALLIES IN TOKYO LAST MONTH DREW ABOUT ONE HUNDRED TWENTY THOUSAND PEOPLE IN A COUNTRY WHERE ONLY ABOUT ONE PERCENT OF THE POPULATION IS CHRISTIAN NUMBERS ARE UNCERTAIN BUT CHRISTIANITY APPEARS TO BE WINNING CONVERTS IN MUCH OF ASIA CHINA HAS ABOUT SIXTY MILLION CHRISTIANS AND MR. GRAHAM SAYS CHRISTIANITY IS GROWING RAPIDLY IN THAILAND A BUDDHIST COUNTRY AS WELL AS IN PREDOMINANTLY ISLAMIC MALAYSIA THERE IS A RESURGENCE OF CHRISTIANITY IN VIETNAM WHICH HAS ABOUT FIVE MILLION CATHOLICS NOW COMPARED WITH ONE POINT FIVE MILLION IN NINETEEN SEVENTY FIVE FUNDAMENTALIST PROTESTANTISM IS CATCHING ON IN THE PHILIPPINES WHICH IS OVERWHELMINGLY CATHOLIC MR. GRAHAM ATTRIBUTES THE GROWING INTEREST IN HIS RELIGION IN PART TO THE RAPID CHANGES THAT ASIANS ARE EXPERIENCING IN THEIR CULTURES ECONOMIES AND POLITICS THE OLD TRADITIONS HAVE BEEN CHANGING HE SAYS THERE'S A VOID AT THE SAME TIME HE SEES A LINK BETWEEN CHRISTIANITY AND FREEDOM QUOTE CHRISTIANITY DOES TEACH FREEDOM QUOTE HE SAYS GOD THROUGH THE BIBLE TEACHES FREEDOM OF CHOICE IN EVERYTHING SPEAKING OF THE TROUBLED RELATIONS BETWEEN THE U. S. AND NORTH KOREA MR. GRAHAM SAID I BELIEVE THE NORTH KOREAN PEOPLE AND THEIR LEADERSHIP WANT TO MOVE BEYOND THE RHETORIC OF THE COLD WAR AND FIND A PERMANENT SOLUTION TO THE PROBLEMS THAT SEPARATE US AT ABOUT THE SAME TIME THAT HE WAS UTTERING THESE WORDS IN HONG KONG A STATEMENT OF AN ENTIRELY DIFFERENT TONE WAS HEARD FROM PYONGYANG APPARENTLY IN RESPONSE TO THE RESOLUTION PASSED BY THE SENATE TUESDAY URGING MR. CLINTON TO SEND TACTICAL NUCLEAR WEAPONS BACK TO SOUTH KOREA IF THE IMPASSE WITH PYONGYANG CONTINUES THE OFFICIAL KOREAN CENTRAL NEWS AGENCY CARRIED A COMMENTARY THURSDAY THAT SAID IN PART IF THE U. S. TAKES A STANCE OF PRESSURE AGAINST US OUR REACTION WILL BE A HUNDRED TIMES STRONGER AND IT WILL BE CARRIED INTO PRACTICAL ACTION WE CANNOT SIT BACK AND WATCH THE MANEUVERS OF THE U. S. TO ISOLATE AND STIFLE US IF THESE HOSTILE WORDS DON'T SOUND LIKE THOSE OF THE MAN BILLY GRAHAM MET PERHAPS IT'S BECAUSE PRESIDENT KIM ISN'T AS SURE OF HIMSELF AS HE ONCE WAS WITH AGE CAN COME WISDOM IN SPECULATING ON WHY PRESIDENT KIM CALLED ON HIM AS A MESSENGER MR. GRAHAM SAID SOME OF HIS EARLY EXPERIENCES MAY BE INFLUENCING HIM NOW IT'S IMPOSSIBLE TO SEE INTO THE HEART OF ANY MAN MUCH LESS THAT OF A MAN WHO HAS SPENT A LIFETIME ISOLATING HIMSELF AND HIS PEOPLE FROM THE WORLD AND FROM GOD YET BILLY GRAHAM HAS A WAY OF TOUCHING THE HEARTS OF MEN AND WOMEN EVERYWHERE IF HE CAN TOUCH THE HEART OF ONE RECLUSIVE OLD ATHEISTIC COMMUNIST WHO LISTENED TO THE WORD OF GOD WITH HIS MOTHER THE WORLD WILL BE BETTER FOR IT MS. KIRKPATRICK IS ASSISTANT EDITOR OF THE JOURNAL'S EDITORIAL PAGE THE NORTHROP CORPORATION TEAM BUILDING A NEXT GENERATION STEALTHY CRUISE MISSILE STANDS TO LOSE AT LEAST ONE BILLION DOLLARS ON THE PROGRAM BY NINETEEN NINETY SEVEN ACCORDING TO AIR FORCE OFFICIALS THE OFFICIALS WHO OVERSEE DEVELOPMENT OF THE TRI SERVICE STANDOFF ATTACK MISSILE ARE QUOTED IN TODAY'S EDITION OF THE DEFENSE NEWSLETTER DEFENSE WEEK NORTHROP BASED IN LOS ANGELES HAS REPORTED SIX HUNDRED THREE MILLION DOLLARS IN LOSSES ON THE FIXED PRICE PROGRAM SO FAR THE COMPANY IS EXPECTED TO LOSE AS MUCH AS SEVEN HUNDRED FIFTY MILLION DOLLARS BRIGADEER GENERAL RICHARD ROELLIG SAID IN THE INTERVIEW AND IN WRITTEN FOLLOW UP RESPONSES THE REST OF THE PROJECTED ONE BILLION DOLLARS LOSSES ARE BEING INCURRED BY ABOUT TWENTY FIVE SUBCONTRACTORS A NORTHROP SPOKESMAN SAID HE IS FAMILIAR ONLY WITH THE COMPANY'S LOSSES DECLARED TO DATE HE ALSO CONFIRMED THE COMPANY HAS INCREASED OVERSIGHT OF THE PROGRAM THE ARMY HAS BEEN GRANTED PERMISSION TO LEAVE THE PROGRAM MEANING THE NUMBER OF MISSILES TO BE BOUGHT HAS DROPPED TO FOUR THOUSAND FIVE HUNDRED TWENTY FIVE FROM SIX THOUSAND SIX HUNDRED FIFTY THE AIR FORCE OFFICIALS SAID THE AIR FORCE ESTIMATES THE TOTAL COST OF EACH AIR FORCE MISSILE AT TWO POINT ONE MILLION DOLLARS WITH A NAVY VARIANT ESTIMATED TO COST FIVE POINT TWO MILLION DOLLARS EACH UNTIL NOW THE PROGRAM HAS BEEN HIGHLY CLASSIFIED MEANING FEW DETAILS HAVE BEEN AVAILABLE ON COSTS AND PLANNED DELIVERIES AS MORE AND MORE FOREIGN INVESTORS JOSTLE THEIR WAY INTO ASIA'S CAPITAL MARKETS THREE OF THE REGION'S MOST POWERFUL CENTRAL BANKS ARE STRUGGLING TO KEEP THE DOORS FROM OPENING TOO FAST OVER THE PAST MONTH MALAYSIA'S BANK NEGARA HAS IMPOSED A SERIES OF RESTRICTIONS ON FOREIGNERS' BANK DEPOSITS AND TAIWAN'S CENTRAL BANK HAS HELPED BLOCK PROPOSALS TO LET FOREIGNERS BUY MORE SHARES ON THE LOCAL STOCK EXCHANGE BANK OF KOREA MEANWHILE SHOWS NO SIGN OF LOOSENING STRICT LIMITS ON FOREIGNERS' STOCK PURCHASES DESPITE FRENZIED DEMAND FROM ABROAD THE SPECIFICS OF EACH CENTRAL BANK'S DILEMMA ARE DIFFERENT BUT ALL FACE THE SAME BASIC CHALLENGE KEEPING SOME OF ASIA'S HOTTEST ECONOMIES GROWING WITHOUT UNLEASHING INFLATION CENTRAL BANKERS FEAR THAT SUDDEN BLASTS OF FOREIGN CASH WILL BLOW THEM OFF THAT TIGHTROPE SOME ALSO FRET THAT INFLOWS OF FOREIGN MONEY WILL PUSH UP THEIR CURRENCIES MAKING EXPORTS LESS COMPETITIVE ASIA STILL WANTS FOREIGN MONEY OF COURSE MOST ASIAN COUNTRIES ARE COUNTING ON HUGE DOLLOPS OF FOREIGN FUNDS TO FINANCE DESPERATELY NEEDED INFRASTRUCTURE PROJECTS AND OTHER INVESTMENT OVER THE NEXT DECADE CHINA THE PHILIPPINES MALAYSIA AND THAILAND ALL HAVE OFFERED GOVERNMENT BONDS OVERSEAS FAMILY COMPANIES THAT ONCE SHUNNED OUTSIDE INVESTORS NOW ARE LISTING SHARES ON FOREIGN STOCK EXCHANGES BUT SOME CENTRAL BANKERS TRYING TO CRAFT POLICIES TO FIGHT INFLATION WORRY THAT THE WHOLE PROCESS IS GOING TOO QUICKLY THE BALANCING ACT BETWEEN CONTROLLING INFLATION AND ATTRACTING FOREIGN FUNDS HAS PROVED PARTICULARLY TRICKY IN MALAYSIA THAT COUNTRY'S CENTRAL BANK BANK NEGARA HAS BEEN BATTLING TO KEEP FOREIGN SPECULATORS FROM BIDDING UP THE MALAYSIAN DOLLAR OR RINGGIT THE PROBLEM IS THAT BANK NEGARA ALSO HAS BOOSTED INTEREST RATES IN AN EFFORT TO RESTRAIN MONEY SUPPLY GROWTH AND CHOKE OFF INFLATION SIXTH MONTH INTERBANK RATES IN MALAYSIA NOW STAND AT AROUND FIVE POINT SIX PERCENT COMPARED WITH THE THREE POINT FIVE PERCENT IN SINGAPORE'S INTERBANK MARKET SO FOREIGNERS HAVE BEEN SNAPPING UP MALAYSIAN DOLLAR INVESTMENTS TO LOCK IN HIGH INTEREST RATES AND BET ON A BIG RISE IN THE CURRENCY BANK NEGARA QUOTE COMMITTED A VERY BIG MISTAKE QUOTE SAID ALFRED WONG CHIEF ECONOMIST AT WARDLEY INVESTMENT SERVICES HONG KONG LIMITED A CENTRAL BANK CANNOT CONTROL A COUNTRY'S EXCHANGE RATE AND ITS MONEY SUPPLY THEY CAN ONLY CONTROL ONE OF THOSE THINGS UNDAUNTED BANK NEGARA HAS TAKEN TO FIGHTING FOREIGN DEMAND FOR ITS CURRENCY ANY WAY IT CAN LAST MONTH IT DUMPED RINGGITS ON THE FOREIGN EXCHANGE MARKETS IT ALSO HIT FOREIGN INVESTORS BY LIMITING BANKS' HOLDINGS OF FOREIGN FUNDS THAT AREN'T TRADE RELATED AND BARRING MALAYSIANS FROM SELLING SHORT TERM MONETARY INSTRUMENTS TO FOREIGNERS FOR NOW BANK NEGARA SEEMS TO BE PREVAILING THE RINGGIT HAS DECLINED ABOUT SEVEN PERCENT AGAINST THE U. S. DOLLAR SO FAR THIS YEAR BUT MANY ECONOMISTS THINK THE SPECULATORS WILL HAVE IT THEIR WAY EVENTUALLY MORGAN STANLEY ASIA LIMITED HAS TOLD CLIENTS THAT THE MALAYSIAN CURRENCY IS LIKELY TO APPRECIATE THIS YEAR TAIWAN'S DETERMINATION TO KEEP THE NEW TAIWAN DOLLAR RELATIVELY CHEAP HAS PITTED ITS CENTRAL BANK AGAINST FOREIGN STOCK INVESTORS MANY INVESTORS AND BROKERAGE FIRMS BLAME THE CENTRAL BANK'S STAND FOR LEAVING ONE OF ASIA'S MOST INDUSTRIALIZED COUNTRIES WITH A STOCK MARKET THAT HAS BECOME A PARIAH EVEN MAINLAND CHINA'S STOCK MARKETS ALLOW INVESTMENTS BY ANY FOREIGN INDIVIDUAL TAIWAN ALLOWS ONLY AUTHORIZED FOREIGN INSTITUTIONS TO BUY SHARES LAST MONTH TAIWAN'S CENTRAL BANK PERSUADED THE GOVERNMENT TO MAINTAIN A FIVE BILLION DOLLAR CEILING ON FOREIGN HOLDINGS OF LISTED TAIWANESE SHARES IF ALL THE CURRENT INVESTMENT APPLICATIONS FROM FOREIGNERS WERE APPROVED FOREIGN HOLDINGS WOULD VASTLY EXCEED THAT CEILING BROKERS SAY THE COUNTRY'S SECURITIES AND EXCHANGE COMMISSION RECENTLY SUGGESTED THAT THE CAP BE RAISED TO TWELVE BILLION DOLLARS THE CLINTON ADMINISTRATION FACES A BACKLASH FROM HIGH TECH COMPANIES OVER ITS DECISION TO PLOW AHEAD WITH A PLAN TO PUSH ONE SYSTEM FOR PROTECTING TELEPHONE AND COMPUTER COMMUNICATIONS THE DECISION COMES AFTER A LENGTHY REVIEW STARTED LAST APRIL WHEN THE ADMINISTRATION UNVEILED THE NEW COMPUTER CHIP WHICH WOULD BE INCLUDED IN ENCRYPTION DEVICES ATTACHED TO TELEPHONES TO SCRAMBLE SOUND OR INFORMATION FOR PRIVACY LAW ENFORCEMENT AGENCIES HOWEVER WOULD HAVE ACCESS TO THE CODE FOR UNSCRAMBLING THE ENCRYPTION COMPUTER COMPANIES CALLED FOR THE REVIEW COMPLAINING THE GOVERNMENT'S ACCESS TO THE CODES WOULD TURN OFF PROSPECTIVE BUYERS PARTICULARLY THOSE OVERSEAS BUT IN BASICALLY DECIDING AGAINST A POLICY SHIFT THE WHITE HOUSE WAS BUOYED BY ARGUMENTS FROM AGENCIES SUCH AS THE NATIONAL SECURITY AGENCY AND THE FEDERAL BUREAU OF INVESTIGATION IN ANNOUNCING THE DECISION VICE PRESIDENT AL GORE DUBBED ENCRYPTION QUOTE A LAW AND ORDER ISSUE QUOTE BECAUSE CRIMINALS USE IT TO BYPASS WIRETAPS THE CLINTON ADMINISTRATION WANTS TO MAKE THE NEW TECHNOLOGY CALLED THE CLIPPER CHIP THE STANDARD FOR PRIVATE INDUSTRY AND GOVERNMENT THE NEW TECHNOLOGY STARTED DURING THE BUSH ADMINISTRATION WAS PROMPTED BY THE INCREASING NUMBER OF COMMERCIAL ENCRYPTION TECHNOLOGIES OUT ON THE MARKET TODAY UNDER THE ADMINISTRATION PLAN OFFICIALS AT THE TREASURY DEPARTMENT AND THE COMMERCE DEPARTMENT'S NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY WOULD HOLD THE SO CALLED ELECTRONIC KEYS TO UNSCRAMBLE THE CLIPPER CHIP'S CODE AND F. B. I. AGENTS OR OTHER LAW ENFORCEMENT OFFICIALS WOULD HAVE ACCESS WITH A COURT ORDER THE ISSUE HAS BECOME A CONTROVERSIAL ONE BETWEEN LAW ENFORCEMENT OFFICIALS AND THE COMPUTER INDUSTRY AND CIVIL LIBERTARIANS IN UNFOLDING DETAILS OF THE ADMINISTRATION'S DECISION MIKE NELSON AN OFFICIAL AT THE OFFICE OF SCIENCE AND TECHNOLOGY POLICY SAID THE ISSUE WAS SO DIFFICULT IT REPRESENTED THE BOSNIA OF TELECOMMUNICATIONS POLICY JERRY BERMAN EXECUTIVE DIRECTOR OF THE ELECTRONIC FRONTIER FOUNDATION A WASHINGTON BASED COMPUTER USERS' CIVIL RIGHTS GROUP SAID THE ADMINISTRATION'S HANDLING OF THE CLIPPER CHIP POLICY COULD MAKE IT AS SUCCESSFUL AS THE BOSNIA POLICY WHICH HAS COME UNDER WIDESPREAD CRITICISM THE CLINTON ADMINISTRATION TRIED TO ACKNOWLEDGE THE WORRIES OF HIGH TECH COMPANIES BY PLEDGING TO STREAMLINE EXPORT LICENSING PROCEDURES FOR COMMUNICATIONS CODING PRODUCTS BUT IT SAID IT WASN'T GOING TO LIFT CURRENT RESTRICTIONS FOR THESE PRODUCTS THE BUSINESS SOFTWARE ALLIANCE A TRADE GROUP REPRESENTING SOFTWARE MAKERS SAID THE RESTRICTIONS THREATEN THE CONTINUED VIABILITY AND SUCCESS OF THE AMERICAN SOFTWARE INDUSTRY DAVID PEYTON A VICE PRESIDENT AT INFORMATION TECHNOLOGY ASSOCIATION OF AMERICA A GROUP WHOSE MEMBERS INCLUDE GENERAL MOTORS CORPORATION'S ELECTRONIC DATA SYSTEMS CORPORATION ARTHUR ANDERSEN AND COMPANY'S ANDERSEN CONSULTING UNIT AND MICROSOFT CORPORATION SAID THAT IT'S A COMPLETELY UNSATISFACTORY SITUATION THIS PROPOSAL MET A TIDAL WAVE OF PUBLIC OPPOSITION WHEN THEY PUT IT OUT THERE'S BEEN NO CHANGE QUOTE SOME BIG COMPANIES ARE TRYING TO BREAK THEIR GLASS CEILINGS THEY ARE PUTTING OUT THE WORD THAT ONLY WOMEN NEED APPLY FOR SOME OF THEIR TOP JOBS THAT'S A TURNABOUT FROM THE RECENT PAST WHEN WOMEN WERE CONSIDERED LAST IF AT ALL FOR SENIOR POSTS EXECUTIVE RECRUITERS SAY THE NEW PRACTICE ARISING FROM A DESIRE TO DIVERSIFY UPPER MANAGEMENT IS CONTROVERSIAL AND POTENTIALLY ILLEGAL WHEN BUSINESSES EXCLUDE MEN FROM CONSIDERATION FOR LUCRATIVE MANAGERIAL POSTS THEY RISK REVERSE SEX BIAS SUITS AND A DISRUPTIVE LOSS OF MORALE AMONG MALE EMPLOYEES AUTHORITIES SAY QUOTE THIS MAY BE A TICKING TIME BOMB WAITING TO GO OFF QUOTE WARNS GLORIA ALLRED A LOS ANGELES LAWYER WHO SPECIALIZES IN WOMEN'S RIGHTS CASES SOME CORPORATIONS TRY TO SIDESTEP THE ISSUE BY TELLING RECRUITERS MERELY THAT THEY WOULD PREFER TO HIRE A WOMAN IF QUALIFIED CANDIDATES EXIST SUCH TARGETED SEARCHES ARE MULTIPLYING DOZENS OF EXECUTIVE WOMEN AND HEADHUNTERS SAY THE TREND HAS DRAMATICALLY INCREASED OVER THE PAST YEAR OR SO SAYS YVONNE JACKSON SENIOR VICE PRESIDENT OF HUMAN RESOURCES AT BURGER KING CORPORATION A UNIT OF GRAND METROPOLITAN P. L. C. RECRUITERS SEEKING WOMEN FOR MANAGERIAL SPOTS CALL HER ONCE A WEEK TWO YEARS AGO SHE SAYS SHE GOT SUCH CALLS ONCE EVERY THREE MONTHS INDEED BURGER KING'S SEARCH FOR A WOMAN LANDED MS. JACKSON HER SIX FIGURE JOB IN DECEMBER THE COMPANY LOOKED OUTSIDE AFTER INSIDE CONTENDERS FOR THE JOB ALL MALE FAILED TO QUALIFY THE FASTFOOD CHAIN SAYS IT INTERVIEWED ONLY WOMEN BECAUSE ITS CHIEF EXECUTIVE OFFICER JAMES ADAMSON INSISTED THAT SENIOR MANAGEMENT BETTER REFLECT BURGER KING CUSTOMERS NEARLY HALF OF WHOM ARE FEMALE THE SELECTION OF MS. JACKSON A FORMER AVON PRODUCTS INCORPORATED EXECUTIVE ADDED A SECOND WOMAN TO BURGER KING'S TEN MEMBER EXECUTIVE COMMITTEE KORN SLASH FERRY INTERNATIONAL THE NATION'S BIGGEST SEARCH FIRM SAYS IT WAS ASKED TO FIND A WOMAN IN FOUR POINT ONE PERCENT OF ITS EXECUTIVE ASSIGNMENTS DURING FISCAL NINETEEN NINETY THREE FIVE YEARS AGO SAYS MADELEINE CONDIT HEAD OF THE FIRM'S U. S. DIVERSITY PRACTICE THAT PROPORTION WOULD HAVE BEEN NIL DURING THE PAST YEAR FIVE COMPANIES ASKED CORPORATE DIRECTIONS A CAREER COUNSELING AND SEARCH FIRM IN TORRANCE CALIFORNIA TO FILL MIDDLE MANAGEMENT AND SENIOR LEVEL JOBS WITH WOMEN SAYS GEORGE SCHMUTZ PRESIDENT FOUR SAID WE WILL INTERVIEW MEN BUT WE ARE ONLY GOING TO HIRE WOMEN HE RECOLLECTS ONE COMPANY SAID DON'T WASTE MY TIME SENDING ME MEN SO I ONLY SENT WOMEN QUOTE A. T. KEARNEY EXECUTIVE SEARCH IS GETTING TWICE OR THREE TIMES AS MANY REQUESTS FOR FEMALE TARGETED SEARCHES AS IT HAD EIGHTEEN MONTHS AGO SAYS CHARLES W. SWEET PRESIDENT OF THE A. T. KEARNEY INCORPORATED DIVISION LAST JUNE FOR EXAMPLE KEARNEY HELPED THE CHICAGO SUN TIMES RECRUIT BERNADETTE SOENS AS CONTROLLER THE FORTY FOUR YEAR OLD MS. SOENS PREVIOUSLY CHIEF FINANCIAL OFFICER OF A SMALL MANUFACTURER IN NILES ILLINOIS IS THE ONLY WOMAN AMONG THE NEWSPAPER'S EIGHT VICE PRESIDENTS SUN TIMES OFFICIALS SAY THEY INTERVIEWED ONLY FEMALE OUTSIDERS FOR THE CONTROLLER'S JOB BECAUSE THE INTERNAL CANDIDATES ALL MEN LACKED SUFFICIENT EXPERIENCE AND BECAUSE MS. SOENS'S PREDECESSOR WAS A WOMAN JOSEPH P. GAYNOR AN EXECUTIVE VICE PRESIDENT OF THE PARENT CHICAGO SUN TIMES COMPANY SAYS THE COMPANY FIGURED THAT A GOOD WAY TO FIND ANOTHER SENIOR WOMAN WAS TO LOOK IN AREAS LIKE FINANCE WHERE THERE WOULD BE LARGER POOLS OF QUALIFIED WOMEN CANDIDATES OTHER EMPLOYERS AGGRESSIVELY SEEKING FEMALE MANAGERS ALSO PINPOINT SPECIALTIES IN WHICH EXPERIENCED CONTENDERS ARE MORE LIKELY TO BE FOUND INCLUDING HUMAN RESOURCES PUBLIC RELATIONS LEGAL AFFAIRS AND OTHER STAFF FUNCTIONS BUT SOME FEMALE MANAGERS FEAR THE TACTIC WILL PERPETUATE PINK GHETTOS IF WE ARE REALLY GOING TO DIVERSIFY OUR WORKPLACES IT CAN'T JUST BE IN FINANCE OR IN HUMAN RESOURCES ARGUES BEVERLY PIERCE COMMUNICATIONS DIRECTOR OF ALLIEDSIGNAL INCORPORATED'S BRAKING SYSTEMS UNIT IN SOUTH BEND INDIANA VIRGINIA LUNDQUIST AN ALLIEDSIGNAL PUBLIC AFFAIRS VICE PRESIDENT HELPED TO CHOOSE MS. PIERCE FROM A LIST OF FIVE WOMEN I WAS QUITE HAPPY WITH THE FACT WE COULD PUT IN A FEMALE SAYS MS. LUNDQUIST THE ONLY SENIOR WOMAN EXECUTIVE IN ALLIEDSIGNAL'S AUTOMOTIVE SECTOR WHICH EMPLOYS THIRTY FIVE THOUSAND BUT EVEN THOUGH MS. PIERCE HAS WORKED OUT WELL MS. LUNDQUIST SAYS WE AREN'T GOING TO DIRECT ALL SEARCHES TO BE GENDER SPECIFIC HER ATTITUDE ISN'T SURPRISING WHEN COMPANIES LIMIT EXECUTIVE RECRUITING TO WOMEN THEY EXPOSE THEMSELVES TO ATTACKS FROM OVERLOOKED MEN SO FAR FEW MEN HAVE CHALLENGED GENDER SPECIFIC SEARCHES BUT A QUALIFIED MALE ASPIRANT EXCLUDED BECAUSE OF HIS SEX MAY FEEL HE HAS GOTTEN THE SHORT END OF THE STICK SAYS JOSEPH D. LUKSCH A PARTNER WITH EPSTEIN BECKER AND GREEN A MANAGEMENT LAW FIRM IN NEW YORK A HARD GOODS MANUFACTURER WITH ONE HUNDRED FIFTY MILLION DOLLARS IN ANNUAL SALES RECENTLY LOWERED THE EXPERIENCE REQUIREMENT FOR THE HEAD OF ITS RETAIL DIVISION RATHER THAN CONSIDER MEN RECALLS SUSAN LANDON A PRINCIPAL AT RECRUITERS LAMALIE AMROP INTERNATIONAL IN NEW YORK QUOTE THEY DIDN'T WANT TO HEAR ABOUT MALE CANDIDATES QUOTE SHE SAYS THEY WERE MORE WILLING TO CHANGE THE SPECIFICATIONS AS IT TURNED OUT THE WOMAN WHO WAS HIRED MET THE ORIGINAL REQUIREMENT WHETHER A BUSINESS CONSIDERS BOTH SEXES OR JUST WOMEN THOUGH A FEMALE TARGETED SEARCH DOESN'T ALWAYS SUCCEED THREE YEARS AGO XEROX CORPORATION'S CHAIRMAN PAUL ALLAIRE SOUGHT A WOMAN TO BE THE COMPANY'S HUMAN RESOURCES VICE PRESIDENT AN INFORMED INDIVIDUAL RECALLS BUT THE COMPANY REJECTED THREE EXTERNAL FEMALE CANDIDATES BECAUSE THEY LACKED EXPERIENCE IN HANDLING LARGE SCALE ORGANIZATIONAL CHANGE WILLIAM F. BUEHLER AN AMERICAN TELEPHONE AND TELEGRAPH COMPANY EXECUTIVE WAS HIRED INSTEAD FINALLY IN NINETEEN NINETY TWO MR. ALLAIRE PROMOTED MR. BUEHLER AND REPLACED HIM WITH ANNE MULCAHEY PREVIOUSLY DIRECTOR OF HUMAN RESOURCES SOME BIG BUSINESSES SIMPLY REFUSE TO GIVE UP IN THEIR QUESTS FOR OUTSIDE FEMALE EXECUTIVES BURGER KING WENT EIGHTEEN MONTHS WITHOUT A HUMAN RESOURCES CHIEF BECAUSE ITS SEARCH FOR A WOMAN WITH GLOBAL EXPERIENCE TOOK LONGER THAN EXPECTED WE ALL GRUMBLED A LOT ABOUT THE PINCH HITTING REQUIRED REMEMBERS CORI ZYWOTOW BURGER KING'S VICE PRESIDENT OF COMMUNICATIONS BUT WE WANTED IT TO BE RIGHT NOT FAST QUOTE TALKING SEX MAKING LOVE IN THE NINETIES QUOTE WILL SOON BE COMING TO YOUR SCREEN AND WHEN IT DOES IT WILL BE CLEAR THAT SEX IN THE NINETIES IS EVEN MORE COMPLICATED THAN MOST OF US SUPPOSED LET IT BE SAID AT ONCE THAT THE H. B. O. SPECIAL AIRING THURSDAY ELEVEN P. M. MIDNIGHT E. S. T. HAS ITS BRISK AND USEFUL SIDE AS IS EVIDENT IN ITS OUTPOURING OF LORE ON THE INCREASINGLY RICH VARIETY OF SEXUALLY TRANSMITTED DISEASES NOW AVAILABLE TO US THEN THERE ARE THE CONDOM LESSONS DISPENSED BY ROB JIGGETTS JUNIOR A PUBLIC HEALTH EDUCATOR WITH A FLAIR FOR COMEDY THAT SAID THE FIRST THING THAT MUST STRIKE ANYONE WATCHING THIS IS THAT FEAR OF AIDS HAS IMPELLED AT LEAST SOME OF THE YOUNG AND RESTLESS AND MANY OF RIPER YEARS TOO TO FIND A WAY OF SIDESTEPPING THE SEX ACT AS IT IS TRADITIONALLY UNDERSTOOD THE TECHNIQUE ALLOWS FOR ALL THE USUAL ACTIVITIES ALONG WITH OTHERS LESS USUAL SHORT OF FULL COUPLING IF WE ARE TO BELIEVE WHAT WE HEAR AND SEE IN THIS PROGRAM AND ELSEWHERE A WHOLE NEW SEXUAL CULTURE HAS BEEN BORN ONE WHOSE CORNERSTONE IS THE NEWLY POPULAR ACTIVITY CALLED WITH THE LYRIC GRACE SO COMMON TO OUR AGE OUTERCOURSE AS ALWAYS THE ARRIVAL OF A CULTURAL REVOLUTION BRINGS WITH IT ADVANCE MEN AND OTHER APOSTLES OF THE NEW TRUE WAY SO IT IS WITH OUTERCOURSE WHICH WE SHOULD NOT BE SURPRISED TO HEAR ON THIS SHOW IS SUPERIOR TO OUTERCOURSE'S NOW SUPERANNUATED OPPOSITE TO LISTEN TO SOME OF THE INTERVIEWEES HERE MOST OF THEM YOUNG TALK ABOUT SEX THE OLD WAY IS INDEED TO WONDER WHY THEY EVER PUT UP WITH ANYTHING SO BORING THERE IS OF COURSE MUCH TO BE SAID IN THE AGE OF AIDS FOR MAKING A VIRTUE OF NECESSITY AND IT IS TRUE AS ONE BOOMER BOMBSHELL AND DEVOTEE OF OUTERCOURSE POINTS OUT IT PUTS LESS PRESSURE ON MEN AND THAT'S NOT ALL ONE OF THE SHOW'S GUESTS HAS DISCOVERED LOOKING AND WATCHING AND HOW MUCH MORE EXCITING IT IS THAN ANYTHING MORE DIRECTLY CARNAL ANOTHER BEAUTY EAGERLY EXPLAINS THAT THERE IS A CERTAIN SPOT RIGHT BEHIND HER EAR THAT IS THE SOURCE OF ALL SHE NEEDS MANY OTHERS OFFER SIMILAR TESTIMONIALS IN FAVOR OF NONCOITIONAL ADVENTURE ONE MAN QUITE LIKELY HAPPY TO LEARN HOW LITTLE IT TAKES TO MAKE THE EARTH MOVE FOR SOME OF THESE WOMEN TAKES THE LOFTIER VIEW THAT OUTERCOURSE MAKES SEX A LEARNING EXPERIENCE SOME OF US WOULD LIKE TO THINK OF COURSE THAT THERE ARE STILL A FEW HUMAN ACTIVITIES LEFT IN THE WORLD THAT DON'T REQUIRE SANCTIFICATION AS A LEARNING EXPERIENCE AND THAT SEX IS ONE OF THEM BUT TRY TELLING THAT TO THE SEX EXPERTS WHO MAKE THEIR LIVING EXPOUNDING ON THIS SUBJECT ON HAND ALONG WITH OTHER EXPERTS IS DOCTOR LONNIE BARBACH P. H. D. AND SEX THERAPIST WHO AFFIRMS THAT OUTERCOURSE ET CETERA IS QUOTE MORE CREATIVE QUOTE ANOTHER GUEST RELATES THAT THE CLIMAXES THAT ENSUE ARE EVEN MORE POWERFUL AND WHY IT IS WE LEARN BECAUSE WE CAN BRING ALL SORTS OF ENERGIES TO THIS INTERACTION TRY RECITING THIS SENTENCE WHILE GATHERING ENERGIES FOR YOUR OWN INTERACTION NEXT WE VISIT WITH CAROL AND ROBERT WHO READ PORNOGRAPHY TO ONE ANOTHER FOR EXCITEMENT BUT MORE IMPORTANT THEY HAVE RECENTLY MADE A DISCOVERY THAT FOR ONE REASON OR ANOTHER COMES AS BIG NEWS TO THE GENERATION THAT CAME OF AGE IN THE SIXTIES AND AFTER NAMELY THAT THE POSTPONEMENT OF PLEASURE HAS ITS ADVANTAGES SEXUALLY AS IN MANY OTHER WAYS ONE WOMAN GOES ON A GOOD WHILE ABOUT HOW SHE PUT OFF SEX WITH A NEW LOVE INSTEAD OF JUMPING RIGHT IN AS USUAL AND FOUND MIRACULOUS LEVELS OF EXCITEMENT THAT WORD ABOUT THIS MIRACLE HAS REACHED THE DO IT GENERATION IS NATURALLY NICE TO HEAR STILL THERE IS SOMETHING EERIE ABOUT THE OUTERCOURSISTS WHO APPEAR ON CAMERA HERE OR IF THEY AREN'T EERIE THEY ARE AT THE VERY LEAST EXHAUSTING ONE BUSINESSLIKE LADY FOR INSTANCE INSTRUCTS US IN THE USE OF THE VEGETABLE SCRUBBER AS A SEX TOOL THIS IS TO BE USED ON THE SKIN PRESUMABLY THAT OF ONE'S PARTNER AND SLASH OR SELF THE SCRUBBER CAN BE FOLLOWED OR PRECEDED BY A FEATHER IN THIS WAY SO WE ARE ASSURED WE CAN BRING DIFFERENT TEXTURES INTO PLAY WHICH HEIGHTEN STIMULATION AS THOUGH WE WERE NOT ALREADY BUSY ENOUGH BRINGING DIFFERENT ENERGIES TO OUR INTERACTION WE ARE NEXT INFORMED THAT IT WOULD BE GOOD TO HAVE A BLINDFOLD ON HAND WHY WE CAN ONLY GUESS THOUGH ONE WOULD BE QUITE USEFUL AS A MEANS OF KEEPING A PARTNER IN THE DARK ABOUT THE FACT THAT HE SLASH SHE IS BEING ROMANCED BY A VEGETABLE SCRUBBER IN THIS RICH WORLD OF OUTERCOURSE IT IS CLEARLY NECESSARY TO BRING A LOT MORE EQUIPMENT INTO THE BEDROOM THAN USED TO BE REQUIRED THAT IS IF ANYBODY IS STILL DOING THINGS IN BEDROOMS AND THERE IS SO MUCH TO DO SUZI AND GUY FOR INSTANCE ARE VERY BUSY IN THE GYM FROM THE LOOK OF THINGS GUY'S WEAKNESS SUZI JOYFULLY CONFIDES IS THAT HE NEEDS TO VISUALIZE HE LOVES TO SEE EVERYTHING IT IS NOT NECESSARY HERE TO GO INTO THE MANY EXPLICIT AND CREATIVE WAYS IN WHICH SUZI HELPS GUY VISUALIZE IN ORDER TO APPRECIATE HOW MUCH HARD WORK ALL THIS IS THIS CONCUPISCENT TOIL SUZI EXPLAINS QUOTE IS WHAT WE BUILT THE WHOLE MARRIAGE ON QUOTE THERE IS A SHARP POINT LURKING AMONG ALL THE MILDLY PRURIENT VIGNETTES AND NEW AGE BLATHER THE FEAR OF AIDS AND OTHER INFECTION IS HAVING ITS EFFECT AND AN INTERESTING POINT IT IS HOWEVER LOST IT GETS IN THE PARADE OF WITNESSES HERE ONE OF THEM A YOUNG WOMAN AND DEVOUT PRACTITIONER OF OUTERCOURSE TELLS HOW SHE FINDS SEX EASIER AND MORE FUN NOW THIS NOTE SOUNDED OFTEN IN THIS PROGRAM CAN ONLY CONFIRM A LOT OF ALREADY STRONG SUSPICIONS THAT SOMETHING HAPPENED TO THE EXPERIENCE OF SEX AS A RESULT OF THE SEXUAL REVOLUTION THAT BEGAN SOME THIRTY YEARS AGO AND THAT THE SOMETHING WAS NOT GOOD THIS THIRTYISH WOMAN INDICATES THAT SHE HAS MOREOVER ONLY JUST RECENTLY DISCOVERED THE EROTIC PLEASURE OF THE LONG KISS BETTER LATE THAN NEVER DEAR AND DON'T FORGET THE VEGETABLE SCRUBBER THE FIRST INTEREST RATE RISE ENGINEERED BY THE FEDERAL RESERVE IN ALMOST FIVE YEARS ISN'T BY ITSELF ENOUGH TO PUSH AN ALREADY STRONG DOLLAR MUCH HIGHER THIS WEEK CURRENCY ANALYSTS BELIEVE BUT IT HAS PUT THE DOLLAR SQUARELY IN THE LIMELIGHT AND PROMPTED SPECULATIVE BUYING IN THE U. S. CURRENCY THEY SAID SOME OF THE MOST AGGRESSIVE CURRENCY TRADING ACCOUNTS ALREADY HAVE RUSHED BACK IN TO BUY THE DOLLAR TRADERS SAID WHAT REMAINS TO BE SEEN IS WHETHER LONG TERM MARKET PLAYERS SUCH AS FIXED INCOME FUND MANAGERS WILL FOLLOW FUELING A SUSTAINED RALLY QUOTE THE ONLY WAY THE DOLLAR IS GOING TO GO SUBSTANTIALLY HIGHER FROM HERE IS IF PEOPLE BECOME CONVINCED THE FED ISN'T DOING JUST A PRE EMPTIVE STRIKE AGAINST INFLATION BUT IS PREPARED TO AGGRESSIVELY RAISE RATES IN THE NEAR TERM QUOTE SAID MICHAEL FAUST VICE PRESIDENT AND FOREIGN EXCHANGE MANAGER AT BAILARD BIEHL AND KAISER IN SAN FRANCISCO CONVINCE THE FIELD AND THE DOLLAR HAS A GOOD CHANCE AT MAKING A RUN AT THE ONE POINT EIGHT OH OH OH MARK LEVEL MR. FAUST AND OTHER TRADERS SAID WHILE MANY CURRENCY ACCOUNTS WERE WILLING TO BET AT THAT LEVEL WHICH HASN'T BEEN SEEN SINCE SUMMER OF NINETEEN NINETY ONE MOST WEREN'T LOOKING FOR IT UNTIL LATE IN NINETEEN NINETY FOUR ON FRIDAY THE CENTRAL BANK SIGNALED THAT IT WAS RAISING ITS TARGET FOR THE FEDERAL FUNDS RATE THE RATE BANKS CHARGE ONE ANOTHER ON OVERNIGHT LOANS TO WHAT TRADERS BELIEVE IS NOW THREE POINT TWO FIVE PERCENT FROM THE PREVIOUS THREE PERCENT OR AS A FED RELEASE PUT IT THE POLICY MAKING FEDERAL OPEN MARKET COMMITTEE VOTED UNANIMOUSLY TO INCREASE SLIGHTLY THE DEGREE OF PRESSURE ON RESERVE POSITIONS IN THE PAST THE FED HASN'T FORMALLY ANNOUNCED ITS INTENTION TO PUSH THE FEDERAL FUNDS RATE TO A DIFFERENT LEVEL THE U. S. CURRENCY WAS TRADING AT ONE POINT SEVEN FIVE EIGHT FIVE MARKS LATE FRIDAY COMPARED WITH ONE POINT SEVEN FOUR ONE FIVE LATE IN NEW YORK THURSDAY THE DOLLAR ALSO TRADED AT ONE HUNDRED NINE POINT THREE OH YEN COMPARED WITH ONE HUNDRED EIGHT POINT ONE FOUR LATE THURSDAY ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED EIGHT POINT EIGHT EIGHT YEN AND AT ONE POINT SEVEN SIX TWO OH MARKS ON FRIDAY THE DOLLAR BRIEFLY TOUCHED ONE POINT SEVEN SIX FOUR OH MARKS A TWENTY NINE MONTH HIGH BUT EVEN THE STAUNCHEST DOLLAR BULLS WON'T BE WILLING TO TAKE THE CURRENCY MUCH HIGHER UNLESS THERE ARE SIGNS THAT THE FED WILL NUDGE RATES UPWARD AGAIN I DON'T THINK THERE'S MUCH MORE UPSIDE FOR THE DOLLAR BASED ON CURRENT NEWS SAID MIKE MALPEDE SENIOR CURRENCY ANALYST AT REFCO INCORPORATED CHICAGO FACTORING IN INTEREST RATE DIFFERENTIALS HE ADDED WE'VE PRICED IT THERE'S A LONG LINE OF PROMINENT WALL STREETERS WHO DO BELIEVE THAT MORE FED MOVES ARE FORTHCOMING HOWEVER JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS INCORPORATED SAID CERTAINLY ON THE SIDE OF THE FED THIS IS THE FIRST INSTALLMENT OF WHAT IS GOING TO BE A LONG PROCESS ATTEMPTING OVER TIME TO DECELERATE U. S. GROWTH IN ORDER TO MAINTAIN PRICE STABILITY BUT OTHERS SAID THAT IN LIGHT OF SOME CONTINUING DOUBTS ABOUT THE STRENGTH OF THE RECOVERY MORE RATE INCREASES MIGHT SPUR A POLITICAL MELEE DISTASTEFUL ALAN GREENSPAN THE FED'S CHAIRMAN AS SOMEONE SAID TO ME I DON'T THINK GREENSPAN WANTS TO SPEND THE REST OF THE YEAR IN FRONT OF A CONGRESSIONAL COMMITTEE EXPLAINING RATE HIKES IF THERE'S STILL A WEAK LABOR FRONT SAID STEVEN GEOVANIS MANAGING DIRECTOR OF FOREIGN EXCHANGE AT MERRILL LYNCH INTERNATIONAL BANK BAILARD BIEHL'S MR. FAUST AGREED AND ADDED THAT SUCH FALLOUT WOULD ALSO BE QUITE APPARENT AT THE ADMINISTRATION LEVEL QUOTE THERE IS A RISK THAT YOU SEE MORE OF A RIFT BETWEEN THE TREASURY AND THE FED QUOTE HE SAID HE CHARACTERIZED THE FED NOW AS PROACTIVE RATHER THAN REACTIVE WITH REGARD TO FIGHTING INFLATION THE NATIONAL ASSOCIATION OF MANUFACTURERS JUMPED ON THE BUSINESS BANDWAGON REJECTING THE CLINTON HEALTH CARE REFORM PLAN SAYING IT CAN'T SUPPORT THE PLAN QUOTE IN ITS PRESENT FORM QUOTE THE STATEMENT WHICH FOLLOWED A DEBATE AMONG BOARD MEMBERS OF THE TWELVE THOUSAND MEMBER TRADE GROUP CAPPED A WEEK IN WHICH TWO OTHER BUSINESS GROUPS ANNOUNCED THEIR OPPOSITION TO THE CLINTON PLAN UNTIL SATURDAY'S FIFTY SIX TO TWENTY VOTE BY THE N. A. M.'S BOARD THE ASSOCIATION HAD FOLLOWED A STRATEGY OF PUBLIC NEUTRALITY SO THAT IT COULD HAVE MORE LEVERAGE IN BARGAINING OVER HEALTH CARE REFORM WE'LL SIMPLY HAVE TO TAKE OUR LUMPS WITH THE CLINTON ADMINISTRATION SAID N. A. M. PRESIDENT JERRY JASINOWSKI ACKNOWLEDGING THAT THE ADMINISTRATION WON'T BE HAPPY WITH THE OUTCOME OF THE N. A. M.'S MEETING AT A RESORT HERE BUT HE SAID THE GROUP STILL WANTS TO BE INVOLVED IN SHAPING REFORM LEGISLATION AND THAT THE INTENT WAS TO SEND A CLEAR SIGNAL THAT WE NEED MAJOR CHANGES IN THE CLINTON PLAN AMONG OTHER THINGS THE N. A. M. DOESN'T LIKE WHAT IT SEES AS HEAVY RELIANCE ON GOVERNMENT AND PRICE CONTROLS TO SOLVE THE HEALTH CARE PROBLEMS THE CLINTON BILL HAS A LOT OF STUFF THAT WE FIND TROUBLESOME SAID CHICAGO INDUSTRIALIST ROBERT PRITZKER WHO IS THIS YEAR'S N. A. M. CHAIRMAN THE MOVE WAS JUST WHAT THE WHITE HOUSE WANTED TO PREVENT SNOWBALLING OPPOSITION TO THE LEGISLATION AT LEAST BY BUSINESS GROUPS THE ADMINISTRATION'S PLAN WAS REJECTED BY BOTH THE BUSINESS ROUNDTABLE AND U. S. CHAMBER OF COMMERCE WITH THE ROUNDTABLE SUPPORTING A RIVAL PLAN BY REPRESENTATIVE JIM COOPER D. TENNESSEE THE FORCE OF N. A. M. MEMBERS' HOSTILITY TO THE CLINTON PLAN APPEARED TO SURPRISE SOME OF THE ASSOCIATION'S OFFICIALS WHO HAD SAID THE GROUP WOULD NEITHER REJECT NOR ENDORSE ANY OF THE COMPETING HEALTH REFORM BILLS IN ADDITION REPRESENTATIVE COOPER HELPED HIS OWN CAUSE FRIDAY WITH A SPEECH THAT WAS WELL RECEIVED BY THE BOARD WHICH IS COMPOSED OF TOP EXECUTIVES OF MANUFACTURERS OF ALL SIZES THE COOPER BILL WOULD PROVIDE TAX INCENTIVES TO HELP PEOPLE BUY HEALTH INSURANCE AND WOULD RELY ON MARKET FORCES TO HOLD DOWN PRICES BUT THE N. A. M. DIDN'T GO SO FAR AS TO ENDORSE THE COOPER PLAN ALTHOUGH HILLARY RODHAM CLINTON HAD BEEN INVITED TO ADDRESS THE GROUP SATURDAY PRESIDENTIAL ASSISTANT ROBERT RUBIN WAS SCHEDULED TO GO IN HER PLACE AS MOMENTUM SWUNG IN FAVOR OF A STAND AGAINST THE CLINTON PLAN N. A. M. MEMBERS AND EXECUTIVES FEARED AN APPEARANCE BY THE ADMINISTRATION WOULD EMBARRASS BOTH THE TRADE GROUP AND THE WHITE HOUSE I DID NOT URGE HIM TO BREAK HIS BACK TO GET DOWN HERE SAID MR. JASINOWSKI WHO INFORMED THE WHITE HOUSE FRIDAY NIGHT OF THE LIKELY VOTE THE WHITE HOUSE CANCELED THE APPEARANCE MANY N. A. M. MEMBERS FELT IT WAS TIME TO STATE WHAT THEY WERE ALREADY SAYING IN PRIVATE MOST OF ITS MEMBERS DON'T LIKE THE CLINTON PLAN WE'VE GOT TO SAY THIS IS TRASH WARREN BATTS CHAIRMAN OF PREMARK INTERNATIONAL INCORPORATED ARGUED FRIDAY QUOTE LET'S START OVER AGAIN QUOTE HE MADE THE REMARKS AT A MEETING OF THE N. A. M.'S ECONOMIC AND REGULATORY POLICY COMMITTEE WHICH UNANIMOUSLY URGED THE BOARD'S EXECUTIVE COMMITTEE TO EXPRESS FULL OPPOSITION TO THE CLINTON PLAN OTHERS CONTENDED THAT REJECTING THE PLAN EVEN WITH A SUBSEQUENTLY TONED DOWN STATEMENT WOULD HURT THEIR EFFORTS TO INFLUENCE THE FINAL LEGISLATION I JUST DON'T THINK IT'S GOOD TACTICS AT THIS POINT CATERPILLAR INCORPORATED CHAIRMAN DONALD FITES TOLD FELLOW BOARD MEMBERS DURING SATURDAY'S DEBATE GENERAL MOTORS CORPORATION AND TRUCK MAKER NAVISTAR INTERNATIONAL CORPORATION WERE AMONG THOSE FAVORING CONTINUED NEUTRALITY IN ADDITION TO PREMARK A MAKER OF CONSUMER PRODUCTS AND RESTAURANT SUPPLIES LARGER EMPLOYERS WHO FAVORED REJECTING THE CLINTON PLAN INCLUDED INTERNATIONAL PAPER COMPANY AND GENERAL MILLS INCORPORATED BOARD MEMBERS SAID THEY DIDN'T WANT THEIR REJECTION OF THE CLINTON PLAN TO BE PERCEIVED AS HARSHLY AS THAT OF THE BUSINESS ROUNDTABLE A GROUP OF CHIEF EXECUTIVE OFFICERS OF LARGE COMPANIES IN BOTH SERVICE AND MANUFACTURING INDUSTRIES SOME MEMBERS AND N. A. M. OFFICIALS TRIED TO SOFTEN THE BLOW BY NOTING THAT THEY STILL WEREN'T ENDORSING ANY SINGLE PLAN SOME EVEN ARGUED THEY WEREN'T OPPOSING THE CLINTON PLAN BUT SIMPLY NOT SUPPORTING IT MANUFACTURERS REMAIN DIVIDED ON MANY ASPECTS OF HEALTH CARE REFORM LARGER HEAVILY UNIONIZED COMPANIES LIKE THE ADMINISTRATION'S IDEA OF FORCING ALL EMPLOYERS TO CONTRIBUTE TO A HEALTH BENEFITS PACKAGE BUT EVEN THOUGH NINETY SEVEN PERCENT OF THE N. A. M.'S MEMBER COMPANIES PROVIDE AT LEAST SOME HEALTH INSURANCE MANY SMALLER MANUFACTURERS OPPOSE SUCH MANDATES THE RESOLUTION REJECTING THE CLINTON PLAN REITERATED THE N. A. M.'S SUPPORT FOR AFFORDABLE BENEFITS SOUND FINANCING ADEQUATE EMPLOYER FLEXIBILITY ENCOURAGEMENT OF INNOVATION REASONABLE LIMITS ON GOVERNMENT INTRUSIVENESS EFFECTIVE COST CONTROLS AND AN END TO COST SHIFTING TO BUSINESS BUT IT SAID THE ADMINISTRATION'S PLAN IS DEFICIENT IN NUMEROUS SIGNIFICANT AREAS AND THE N. A. M. IS UNABLE TO SUPPORT IN ITS PRESENT FORM THE ADMINISTRATION'S HEALTHCARE REFORM PLAN NOTING THAT HE HAD ALREADY SENT MR. CLINTON A LETTER OBJECTING TO PARTS OF THE PLAN MR. JASINOWSKI SAID THE N. A. M.'S ACTION ESSENTIALLY MADE PUBLIC WHAT IT WAS ALREADY TELLING THE ADMINISTRATION IN PRIVATE NOW THAT THE U. S. EMBARGO AGAINST VIETNAM HAS BEEN LIFTED THE LARGEST U. S. AIRLINES ARE EAGER TO START SERVING THE SOUTHEAST ASIAN COUNTRY BUT NOT ALL OF THEM MAY BE ALLOWED IN BY HANOI OR BY WASHINGTON SO THE INTENSE LOBBYING THAT PRECEDED THE EMBARGO'S END IS TURNING INTO A HOTLY COMPETITIVE HORSE RACE U. S. AIRLINES ARE EAGER TO ADD A NEW COUNTRY TO THEIR ASIAN ROUTE MAPS ESPECIALLY ONE WHERE THEY WOULDN'T HAVE TO SHELL OUT MILLIONS OF DOLLARS TO PAY FOR ROUTE RIGHTS THEY EXPECT A FLOOD OF BUSINESS TRAVELERS INTENT ON DOING DEALS IN THE COUNTRY OF SEVENTY TWO MILLION AS WELL AS TRAFFIC FROM SOME OF THE ONE MILLION ETHNIC VIETNAMESE WHO LIVE IN THE U. S. QUOTE VIETNAM IS ONE OF THE MOST PROMISING COUNTRIES IN ASIA QUOTE SAYS A CONTINENTAL AIRLINES EXECUTIVE IN THE PAST FEW DAYS CARRIERS HAVE PEPPERED WASHINGTON WITH ROUTE APPLICATIONS AND DISPATCHED SQUADS OF EXECUTIVES TO HANOI AND HO CHI MINH CITY TO FURTHER THEIR CAUSE WITH AIRLINE AND GOVERNMENT OFFICIALS THERE THIS IS THE TWENTIETH CENTURY VERSION OF THE OKLAHOMA LAND RUSH DECLARES AN OFFICIAL OF ANOTHER U. S. AIRLINE JOCKEYING TO ENTER THE MARKET WITHIN TWO HOURS OF PRESIDENT CLINTON'S LIFTING OF THE EMBARGO THURSDAY U. A. L. CORPORATION'S UNITED AIRLINES ANNOUNCED THAT IT INTENDS TO FLY TO HO CHI MINH CITY FROM LOS ANGELES PROBABLY VIA TAIPEI THE NEXT DAY NORTHWEST AIRLINES SAID IT APPLIED TO THE U. S. TRANSPORTATION DEPARTMENT FOR A LICENSE TO FLY TO HO CHI MINH CITY FROM DETROIT VIA TOKYO CONTINENTAL CONFIRMED THAT ITS CONTINENTAL MICRONESIA UNIT APPLIED LAST YEAR FOR ROUTE RIGHTS TO VIETNAM AND HAS HAD EXTENSIVE DISCUSSIONS WITH VIETNAM AIRLINES ON TRAINING AIRCRAFT LEASING SUPPORT ACTIVITIES AND JOINT FLIGHTS FROM GUAM AND HONOLULU DELTA AIR LINES SAID IT HASN'T YET FILED FOR ROUTE AUTHORITY BUT CALLED VIETNAM A MARKET THAT HAS APPEAL THE CARRIER PROBABLY WOULD SERVE VIETNAM AS AN EXTENSION OF ITS FLIGHTS TO TAIPEI FROM LOS ANGELES A SPOKESMAN SAID AMERICAN AIRLINES' PARENT A. M. R. CORPORATION SAID IT CONTINUES TO BE INTERESTED IN SELLING AIRPORT MANAGEMENT AND OTHER AVIATION SERVICES TO THE VIETNAMESE AMERICAN WHICH HAS DROPPED ALL OF ITS ASIAN DESTINATIONS EXCEPT FOR JAPAN PROBABLY WOULDN'T WANT TO FLY TO VIETNAM CARGO CARRIER FEDERAL EXPRESS CORPORATION ALSO HAS INDICATED A DESIRE TO FLY TO VIETNAM ACCORDING TO THE U. S. TRANSPORTATION DEPARTMENT U. S. AIRLINES HAVE SPENT THE PAST TWO YEARS WOOING VIETNAMESE GOVERNMENT AND AIRLINE OFFICIALS IN ORDER TO GET A LEG UP ONCE THE EMBARGO ENDED BUT IT MAY NOT BE IN VIETNAM'S BEST INTERESTS TO LET ALL THE U. S. CARRIERS IN THE VIETNAM MARKET IS SO SMALL IT MIGHT BE SPOILED BY TOO MANY AIRLINES SAYS NGUYEN NGOC QUANG DIRECTOR OF CORPORATE AFFAIRS AT STATE OWNED VIETNAM AIRLINES MOREOVER THERE IS NO AGREEMENT BETWEEN THE TWO COUNTRIES ON AIR SERVICES ADDS MR. QUANG I CAN'T IMAGINE THE VIETNAMESE OPENING THEIR SKIES SAYS ONE U. S. AIRLINE'S REPRESENTATIVE IN SOUTHEAST ASIA QUOTE WITH ONLY ONE NATIONAL CARRIER THEY WOULD BE OVERWHELMED QUOTE MOREOVER THEY CAN EXACT WHATEVER THEY WANT FROM THE U. S. CARRIERS THAT WANT TO GET IN THERE HE SAYS COMPLICATING THIS IS VIETNAM AIRLINES' OWN PROBLEMS THE CARRIER WANTS TO OFFER A CREDIBLE SERVICE TO THE U. S. BUT IT LACKS THE NECESSARY AIRCRAFT FOR SUCH LONG FLIGHTS MR. QUANG SAYS THE SMALL AIRLINE WHICH CARRIED EIGHT HUNDRED THOUSAND PASSENGERS IN NINETEEN NINETY TWO HAS ONLY TWO TYPES OF MODERN LONG DISTANCE PLANES LEASED BOEING COMPANY SEVEN SIXTY SEVENS THAT IT FLIES TO AUSTRALIA RUSSIA SOUTH KOREA AND SOME REGIONAL DESTINATIONS AND FIVE AIRBUS INDUSTRIE A. THREE TWENTIES IT RECENTLY LEASED FOR SHORTER HOPS THE BULK OF ITS FLEET CONSISTS OF ELDERLY RUSSIAN BUILT JETS AND TURBOPROPS THEY ALMOST CERTAINLY WON'T OPERATE ON ROUTES TO THE U. S. THEMSELVES SAYS STEPHEN MILLER WHOSE HONG KONG BASED TRINITY AVIATION LIMITED LEASES THE BOEINGS TO VIETNAM AIRLINES THEY'LL PROBABLY OPT TO OPERATE WITH A U. S. CARRIER IN A JOINT VENTURE THEY'LL GO WITH WHOEVER WILL GIVE THEM THE BEST DEAL WITHOUT RECIPROCAL SERVICE TO THE U. S. BY VIETNAM AIRLINES OR THE NATION'S SMALL TROUBLED PACIFIC AIRLINES IT'S DOUBTFUL THAT HANOI WOULD OPEN ITS SKIES TO A SLEW OF U. S. AIRLINES THE VIETNAMESE KNOW IN A WAR OF ATTRITION ON THE PACIFIC THEY COULD NEVER WIN SAYS MR. MILLER WASHINGTON HAS QUOTE NOT RECEIVED NOTICE THAT THE VIETNAMESE WANT TO FLY HERE QUOTE SAYS ONE ADMINISTRATION OFFICIAL IF THEY DON'T WANT TO COME HERE THEY'D CLEARLY CALL THE SHOTS AND IF THE VIETNAMESE AREN'T WILLING TO ADMIT ALL U. S. OPERATORS THIS ADMINISTRATION MIGHT HAVE TO MAKE SOME CHOICES ON WHICH U. S. CARRIERS WILL GO IN HE SAYS UNITED BELIEVES IT HAS THE BEST CASE IT INHERITED OPERATING AUTHORITY TO VIETNAM FROM SEVERAL ASIAN CITIES WHEN IT BOUGHT PAN AM CORPORATION'S PACIFIC ROUTES IN NINETEEN EIGHTY SIX WHILE THE U. S. TRANSPORTATION DEPARTMENT HASN'T YET RENEWED UNITED'S LICENSE TO FLY TO VIETNAM THE CARRIER LAST WEEK URGED THE DEPARTMENT TO NOTIFY HANOI THAT UNITED HAS THE ROUTE AUTHORITY A UNITED SPOKESMAN NOTES THAT THE AIRLINE WILL NEED PERMISSION FROM VIETNAM AS WELL BOTH TO FLY THERE AND ALSO FOR RIGHTS TO PICK UP PASSENGERS AT AN INTERMEDIATE POINT SUCH AS TAIPEI HE CONFIRMED THAT STEPHEN WOLF U. A. L.'S CHAIRMAN AND CHIEF EXECUTIVE IS SCHEDULED TO VISIT HANOI FEBRUARY SIXTEENTH HIS SECOND VISIT IN A YEAR WE'VE HAD QUITE A CLOSE RELATIONSHIP WITH UNITED OVER THE PAST SIX MONTHS SAYS PHAM PHU KHOI VIETNAM AIRLINES' HONG KONG BASED MANAGER FOR NORTHEAST ASIA WHEN PRESSED HE ADDS THAT THE TWO AIRLINES HAVE HAD LOTS OF TALKS BUT NOT MADE ANY DEALS NORTHWEST UNITED'S BIGGEST RIVAL IN THE PACIFIC ALSO BELIEVES IT HAS A GOOD CHANCE NORTHWEST SINCE NINETEEN NINETY ONE HAS FLOWN CHARTER FLIGHTS BETWEEN HO CHI MINH CITY AND BANGKOK CARRYING VIETNAMESE REFUGEES RESETTLING IN THE U. S. BUT THE OTHERS HAVE BEEN ACTIVE AS WELL MR. QUANG SAYS HE VISITED HOUSTON LOS ANGELES AND SAN FRANCISCO LATE LAST YEAR COURTESY OF CONTINENTAL HE AND CONTINENTAL REPRESENTATIVES DISCUSSED MANY INITIATIVES INCLUDING HAVING VIETNAM AIRLINES PICK UP CONTINENTAL PASSENGERS IN MANILA FOR ONWARD FLIGHTS HE SAYS CONTINENTAL WHICH FLEW CHARTER FLIGHTS IN VIETNAM DURING THE VIETNAM WAR HAS A SIZABLE PRESENCE IN THE PACIFIC THROUGH ITS CONTINENTAL MICRONESIA UNIT CONTINENTAL EXPECTS THAT ALL U. S. AIRLINES WILL HAVE AN EQUAL OPPORTUNITY TO COMPETE FOR WHATEVER TRAFFIC RIGHTS ARE AGREED UPON BY THE TWO GOVERNMENTS A SPOKESMAN SAYS DELTA'S CHAIRMAN RONALD ALLEN VISITED VIETNAM IN NINETEEN NINETY TWO AND THE AIRLINE THAT YEAR HOSTED VIETNAM AIRLINES OFFICIALS ON A VISIT TO WALT DISNEY WORLD IN FLORIDA STILL IN THE ABSENCE OF DIPLOMATIC RELATIONS BETWEEN THE U. S. AND VIETNAM IT'S NOT CLEAR WHEN THE TWO COUNTRIES WILL SIT DOWN AND NEGOTIATE AN AVIATION AGREEMENT A U. S. REGULATION STILL IN EFFECT BARS U. S. REGISTERED AIRCRAFT FROM FLYING IN COMMUNIST CONTROLLED VIETNAM THE U. S. FEDERAL AVIATION ADMINISTRATION WILL HAVE TO CERTIFY THAT VIETNAM'S AIRPORTS AIR TRAFFIC CONTROL SYSTEM AND SECURITY MEASURES ARE ADEQUATE THE U. S. TREASURY DEPARTMENT WHICH ENFORCED THE EMBARGO WILL HAVE TO MAKE NEW REGULATIONS GOVERNING RELATIONS WITHOUT THE TRADE BAN ONE CONTINENTAL EXECUTIVE PREDICTS IT WILL BE AT LEAST THREE TO SIX MONTHS BEFORE U. S. PLANES LAND IN VIETNAM THIS SHOULD BE LOOKED AT AS AN ENTIRELY NEW BALL GAME SAYS A TRANSPORTATION DEPARTMENT OFFICIAL INDEED VIETNAM AIR'S MR. QUANG LAST WEEK IN HANOI SAID THAT HIS COMPANY PLANS MEETINGS TODAY TO DECIDE WHAT TO DO NEWS CORPORATION SAID IT AGREED TO SELL THE BOSTON HERALD TO PATRICK J. PURCELL THE LONGTIME PUBLISHER OF THE HERALD WHO ALSO SERVES AS PUBLISHER OF THE NEW YORK POST RUPERT MURDOCH NEWS CORPORATION'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER CITED FEDERAL COMMUNICATIONS COMMISSION CROSS OWNERSHIP RULES FOR THE EXPECTED SALE NEWS CORPORATION HAD SAID LAST FALL IT MIGHT SELL THE TABLOID WHICH HAS A DAILY CIRCULATION OF THREE HUNDRED TWENTY ONE THOUSAND SEVEN HUNDRED FIFTEEN WHEN IT RETAINED ITS OPTION TO BUY W. F. X. T. T. V. CHANNEL TWENTY FIVE A FOX INCORPORATED AFFILIATE HERE DREW MARCUS AN ANALYST WITH ALEXANDER BROWN AND SONS SAID THE MOVE CONTINUES A SHIFT FROM PRINT TO ELECTRONIC MEDIA BY NEWS CORPORATION QUOTE IT'S MUCH MORE IMPORTANT STRATEGICALLY FOR THE COMPANY TO OWN A BOSTON TELEVISION STATION THAN A NEWSPAPER QUOTE HE SAID ESPECIALLY IN THE WAKE OF NEWS CORPORATION'S FOX UNIT WINNING THE RIGHTS TO NATIONAL FOOTBALL LEAGUE BROADCASTS WITH THE N. F. L. DEAL AND THE PROFITS IT WILL BRING TO THE LOCAL AFFILIATE STATIONS IT MAKES SENSE FOR THEM TO OWN AS MANY MAJOR MARKET STATIONS AS POSSIBLE TERMS OF THE SALE WEREN'T DISCLOSED A HERALD EDITOR PUT THE PRICE AT ABOUT FIFTEEN MILLION DOLLARS PARTLY FINANCED BY NEWS CORPORATION BUT THIS COULDN'T BE CONFIRMED MR. PURCELL WHO ALSO HAD BACKING FROM BANK OF BOSTON CORPORATION FOR THE PURCHASE ASSERTED THAT THE PAPER HAS BEEN RUNNING CLOSE TO BREAK EVEN FOR THE PAST FEW YEARS HE SAID THAT WHILE THE HERALD'S CIRCULATION HAS SLIPPED IN RECENT YEARS FROM A PEAK OF THREE HUNDRED SIXTY FIVE THOUSAND IN NINETEEN EIGHTY EIGHT AS THE REGION'S ECONOMY REBOUNDS AS I THINK IT'S POISED TO DO CIRCULATION WILL GROW AGAIN HE SAID HE EXPECTS TO CUT COSTS AND HAS SOME IDEAS ON HOW TO BRING IN NEW ADVERTISING REVENUE THE HERALD COMPETES FOR READERS AND ADVERTISERS WITH THE LARGER BOSTON GLOBE NOW OWNED BY NEW YORK TIMES COMPANY WHICH HAS A DAILY CIRCULATION OF FIVE HUNDRED SEVEN THOUSAND SIX HUNDRED FORTY SEVEN AND DOMINATES LOCAL ADVERTISING WITH MORE THAN EIGHTY PERCENT OF THE MARKET BY SOME ESTIMATES THE TWO PAPERS ARE OFTEN BITTER COMPETITORS WITH THE HERALD'S SCREAMING HEADLINES AND POLITICALLY CONSERVATIVE VIEWS CONTRASTING WITH THE GLOBE'S MORE COMPREHENSIVE REGIONAL AND NATIONAL COVERAGE AND LIBERAL EDITORIAL PAGE THE GLOBE'S SUNDAY EDITION TOWERS OVER THE SUNDAY HERALD WITH CIRCULATION OF EIGHT HUNDRED FOURTEEN THOUSAND THIRTY SIX COPIES COMPARED WITH TWO HUNDRED THIRTEEN THOUSAND NINE HUNDRED EIGHTY FIVE FOR THE HERALD THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND ONE HALF PERCENT HIGH THREE PERCENT LOW THREE PERCENT NEAR CLOSING BID THREE AND ONE EIGHTH PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT ONE OH PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT ONE FIVE PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT ONE EIGHT PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT TWO OH PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT THREE OH PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT THREE FIVE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT FOUR FIVE PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE SIX PERCENT THIRTY DAYS THREE POINT TWO TWO PERCENT SIXTY DAYS THREE POINT TWO FIVE PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE FOUR PERCENT ONE MONTH TWO POINT FIVE SEVEN PERCENT TWO MONTHS TWO POINT SIX ONE PERCENT THREE MONTHS TWO POINT SEVEN FIVE PERCENT SIX MONTHS THREE POINT ONE TWO PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT THREE FIVE PERCENT ONE MONTH THREE POINT FOUR FIVE PERCENT THREE MONTHS THREE POINT SIX OH PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT TWO SEVEN PERCENT THIRTY DAYS THREE POINT THREE THREE PERCENT SIXTY DAYS THREE POINT THREE NINE PERCENT NINETY DAYS THREE POINT FOUR TWO PERCENT ONE HUNDRED TWENTY DAYS THREE POINT FOUR FIVE PERCENT ONE HUNDRED FIFTY DAYS THREE POINT FIVE OH PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT TWO MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT THREE AND FIVE SIXTEENTHS PERCENT FOUR MONTHS THREE AND ONE HALF PERCENT THREE AND THREE EIGHTHS PERCENT FIVE MONTHS THREE AND NINE SIXTEENTHS PERCENT THREE AND SEVEN SIXTEENTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE QUARTER PERCENT ONE MONTH THREE AND SEVEN SIXTEENTHS PERCENT THREE MONTHS THREE AND FIVE EIGHTHS PERCENT SIX MONTHS THREE AND FIFTEEN SIXTEENTHS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT FIVE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY THIRTY FIRST NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE NINE PERCENT THIRTEEN WEEKS THREE POINT ONE SIX PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SEVEN POINT OH SIX PERCENT SIXTY DAYS SEVEN POINT ONE TWO PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SEVEN POINT OH SIX PERCENT SIXTY DAYS SEVEN POINT ONE SIX PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT ONE FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN TWO PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS FIRST COLONY CORPORATION SAID DIRECTORS AUTHORIZED REPURCHASE OF UP TO FIVE MILLION OF THE COMPANY'S COMMON SHARES THE INSURANCE HOLDING COMPANY HAS FORTY NINE POINT THREE MILLION SHARES OUTSTANDING THE FEDERAL RESERVE RAISED SHORT TERM INTEREST RATES FOR THE FIRST TIME IN FIVE YEARS THE STOCK MARKET PLUNGED THE BOND MARKET FLINCHED A DEMOCRATIC SENATOR LIKENED THE ACTION TO BOMBING AVERAGE AMERICANS AND THE WHITE HOUSE WELL THE WHITE HOUSE SHRUGGED OFF THE MOVE AS ANTICIPATED CLEARLY THE BILL CLINTON ALAN GREENSPAN HONEYMOON ISN'T OVER YET AND IT SEEMS LIKELY TO CONTINUE AS LONG AS THE FED DOES WHAT GOVERNMENT OFFICIALS HERE NOW EXPECT KEEP SHORT TERM INTEREST RATES BELOW FOUR PERCENT FOR THE REST OF THE YEAR WHEN THE FED BROKE WITH TRADITION FRIDAY AND PUBLICLY ANNOUNCED THE RATE INCREASE TREASURY SECRETARY LLOYD BENTSEN AND CHIEF WHITE HOUSE ECONOMIST LAURA D'ANDREA TYSON WERE PREPARING TO BRIEF REPORTERS ON NEW UNEMPLOYMENT FIGURES MR. BENTSEN HAD EATEN BREAKFAST WITH MR. GREENSPAN BUT SAYS HE AVOIDED ASKING WHETHER THE LONG ADVERTISED RATE INCREASE WAS COMING ALERTED BY THE FED MOMENTS BEFORE WIRE SERVICE HEADLINES CARRIED THE NEWS MR. BENTSEN FIRST HUDDLED WITH MS. TYSON WHITE HOUSE ECONOMIC ADVISER ROBERT RUBIN AND PRESIDENTIAL IMAGE MEISTER DAVID GERGEN HE THEN TALKED BY PHONE WITH PRESIDENT CLINTON AROUND NOON THE TREASURY SECRETARY WENT TO THE WHITE HOUSE PRESS ROOM CHOOSING HIS WORDS MORE CAREFULLY THAN USUAL HE EMPHASIZED THAT INFLATION IS QUOTE WELL CONTAINED QUOTE BUT SAID THAT THE FED'S QUOTE PRE EMPTIVE STRIKE AGAINST INFLATION QUOTE WOULDN'T QUOTE INHIBIT GROWTH QUOTE ON SATURDAY THE TREASURY SECRETARY AND THE FED CHAIRMAN PLAYED TENNIS ON SUNDAY MR. BENTSEN SAID ON N. B. C.'S MEET THE PRESS THAT THE BIGGEST CONTROVERSY THAT I HAVE WITH THE CHAIRMAN OF THE FEDERAL RESERVE WAS EXPRESSED ON THE TENNIS COURTS MR. BENTSEN WON THE FIRST SET SIX TO TWO MR. GREENSPAN THE SECOND IN A TIE BREAKER MS. TYSON PRACTICALLY THANKED THE FED THIS MOVE TODAY IS CONSISTENT WITH THE CONTINUATION OF A SOLID AND SUSTAINED ECONOMIC EXPANSION SHE SAID FRIDAY SHE REMINDED REPORTERS THAT THE NEW WHITE HOUSE ECONOMIC FORECAST ANTICIPATES THAT THE FED WILL RAISE RATES BY ONE HALF PERCENTAGE POINT THIS YEAR FRIDAY'S INCREASE GOES HALFWAY THOUGH MR. BENTSEN SAID IN AN INTERVIEW THAT UNLESS INFLATION BECOMES MORE WORRISOME I DON'T SEE ANY REASON FOR ANOTHER QUARTER POINT INCREASE BEHIND THIS UNUSUAL COZINESS IS AN ALLIANCE THAT HAS BECOME CRITICAL FOR BOTH THE FED CHIEF AND THE PRESIDENT THE FED HOLDS IN ITS HANDS THE FUTURE OF PRESIDENT CLINTON TO EXAGGERATE IT JUST A LITTLE REPRESENTATIVE LEE HAMILTON AN INDIANA DEMOCRAT AND FORMER CHAIRMAN OF THE JOINT ECONOMIC COMMITTEE SAID RECENTLY HE'S NOT GOING TO PICK A FIGHT HE'S GOT TOO MUCH AT STAKE QUOTE MEANWHILE MR. GREENSPAN NEEDS WHITE HOUSE SUPPORT IN FENDING OFF CONGRESSIONAL AND TREASURY PROPOSALS TO CURB THE FED'S INDEPENDENCE AND WEAKEN ITS REGULATORY CLOUT OVER BANKS MR. CLINTON HAS AT LEAST ONE BIG ADVANTAGE OVER GEORGE BUSH IN DEALING WITH MR. GREENSPAN WITH THE ECONOMY SLUMPING MR. BUSH NEEDED THE FED TO CUT INTEREST RATES SWIFTLY ALL MR. CLINTON NEEDS IS FOR MR. GREENSPAN TO DO WHAT COMES NATURALLY MOVE VERY SLOWLY AND HE IS THE INCREASE IN THE FEDERAL FUNDS RATE WHICH BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS TO THREE POINT TWO FIVE PERCENT IS PROBABLY THE FIRST INSTALLMENT BUT IN THE FED'S LAST ROUND OF RATE INCREASES BEGINNING IN NINETEEN EIGHTY EIGHT IT INCREASED THEM BY MORE THAN THREE FULL PERCENTAGE POINTS WITHIN A YEAR UNLESS INFLATION SURGES OR THE ECONOMY TAKES AN UNFORESEEN DIP THE FED IS LIKELY TO KEEP THE FED FUNDS RATE AROUND FOUR PERCENT THROUGH NINETEEN NINETY FOUR PARTLY BECAUSE OF UNCERTAINTY ABOUT HOW FAR THE FED WILL GO THE DOW JONES INDUSTRIAL AVERAGE FELL NINETY SIX POINT TWO FOUR POINTS OR TWO POINT FOUR PERCENT TO THREE THOUSAND EIGHT HUNDRED SEVENTY ONE POINT FOUR TWO FRIDAY THE YIELD ON TEN YEAR TREASURY SECURITIES THE BENCHMARK RATE FOR FIXED RATE MORTGAGES ROSE BY NEARLY ONE TENTH OF A PERCENTAGE POINT ECONOMISTS BELIEVE BANKS ARE SURE TO RAISE THE RATES THEY PAY ON SHORT TERM DEPOSITS BUT AREN'T LIKELY TO BOOST THEIR PRIME LENDING RATE WIDELY USED AS A BENCHMARK FOR HOME EQUITY LOANS AND SOME BUSINESS LOANS SOME FED OFFICIALS THINK MR. GREENSPAN IS MOVING TOO SLOWLY BY WAITING SO LONG TO INCREASE RATES HE HAS FUELED CRITICISM THAT HE IS BEHOLDEN TO MR. CLINTON AND SOFT ON INFLATION WHILE PUSHING UP RATES TOO MODESTLY AT RECENT CLOSED DOOR MEETINGS OF FED OFFICIALS FED VICE CHAIRMAN DAVID MULLINS AND WAYNE ANGELL A FED GOVERNOR HAVE ARGUED THAT WHEN THE FED FINALLY MOVED IT SHOULD RAISE RATES A FULL ONE HALF PERCENTAGE POINT SIGNALING A ONE TIME ADJUSTMENT THAT WOULDN'T BE FOLLOWED BY A SERIES OF SMALL MOVES WHEN THE FED POLICY MAKERS ASSEMBLED THURSDAY AFTERNOON NEITHER MR. MULLINS NOR MR. ANGELL WAS THERE BOTH ARE LEAVING THE FED THE SESSION INTERRUPTED BY A FIRE ALARM WAS DOMINATED BY FED ECONOMISTS WHO SAID THAT THE U. S. ECONOMY IS PICKING UP MOMENTUM DESPITE WEAK DEMAND FOR U. S. EXPORTS AND TAX INCREASES AND DEFENSE CUTS AT HOME ALTHOUGH MR. GREENSPAN GOT HIS CUSTOMARY ADVANCE PEEK AT THE LABOR DEPARTMENT'S EMPLOYMENT REPORT LATE THURSDAY THE REST OF THE WORLD DIDN'T LEARN UNTIL FRIDAY MORNING THAT EMPLOYERS ADDED A FEWER THAN PREDICTED SIXTY TWO THOUSAND WORKERS IN JANUARY SOME FED WATCHERS QUICKLY CONCLUDED THAT THE FED WOULD HAVE TO PICK A MORE PROPITIOUS DAY TO RAISE RATES WEATHER DISTORTED JOBS REPORT DELAYS FED TIGHTENING MERRILL LYNCH AND COMPANY ECONOMISTS DECLARED IN A BULLETIN BUT AT THE FED IT WAS CLEAR THAT THE TIME HAD COME THE TRADITIONAL MORNING DISCUSSION OF THE FED'S OBJECTIVES FOR THE YEAR WAS DEFERRED UNTIL AFTERNOON SO THE COMMITTEE COULD VOTE ON THE IMMEDIATE QUESTION MR. GREENSPAN HAD EXPLAINED THE FED'S RATIONALE IN ADVANCE FIRST TO MR. CLINTON AND HIS SENIOR ECONOMIC ADVISERS AT AN UNANNOUNCED MEETING AT THE WHITE HOUSE ON JANUARY TWENTY FIRST AND THEN TO THE PUBLIC IN CONGRESSIONAL TESTIMONY LAST MONDAY THE FED MR. GREENSPAN SAID HAD BEEN HOLDING RATES DOWN SO THE ECONOMY WOULD GROW AS COMPANIES AND FAMILIES PAID OFF DEBTS FROM THE NINETEEN EIGHTIES ADJUSTED FOR INFLATION SHORT TERM INTEREST RATES HAVE BEEN NEAR ZERO SINCE SEPTEMBER NINETEEN NINETY TWO FED POLICY MAKERS VOTED TEN TO TWO TO HOLD RATES STEADY AT THEIR DECEMBER MEETING THE FED DISCLOSED FRIDAY MR. ANGELL AND GOVERNOR LAWRENCE LINDSEY DISSENTED IN FAVOR OF HIGHER RATES THE FED FIGURED THAT WITH THE ECONOMY FINALLY PICKING UP SPEED THE TIME WAS NEARING NOT TO SLAM ON THE BRAKES BUT TO LIFT ITS FOOT OFF THE ACCELERATOR WAITING FOR INFLATION TO SHOW ITSELF WOULD BE A MISTAKE MR. GREENSPAN HAS SAID SINCE IT WOULD RISK A DAMAGING INCREASE IN THE LONG TERM INTEREST RATES THAT FINANCIAL MARKETS SET ALTHOUGH SOME FED POLICY MAKERS WANTED TO RAISE SHORT TERM RATES BY ONE HALF PERCENTAGE POINT NOW MR. GREENSPAN'S CAUTIOUS QUARTER POINT INCREASE WON UNANIMOUS APPROVAL HAD IT STUCK TO PAST PRACTICE THE FED WOULD HAVE SIGNALED ITS DECISION ONLY BY PRIVATELY ORDERING TECHNICIANS TO DRAIN CREDIT FROM THE BANKING SYSTEM INSTEAD THE FED ISSUED AN UNPRECEDENTED STATEMENT TO AVOID ANY MISUNDERSTANDING THE FED SAID THE MOVE WAS MADE TO SUSTAIN AND ENHANCE THE ECONOMIC EXPANSION TRYING TO MAKE CLEAR THAT IT DOESN'T SEE ANY INFLATIONARY PRESSURES BUILDING THE DECISION TO GO PUBLIC DREW ALMOST AS MUCH ATTENTION AS THE RATE MOVE ITSELF THERE WAS SPECULATION THE FED WAS ANGLING TO PLACATE HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ A TEXAS DEMOCRAT WHO HAS INTRODUCED A BILL THAT WOULD AMONG OTHER THINGS REQUIRE THE CENTRAL BANK TO LIBERALIZE DISCLOSURE MR. GONZALEZ WAS QUICK TO CLAIM CREDIT FOR FRIDAY'S DISCLOSURE AND URGED CONGRESS TO ADOPT HIS PLAN LEST THE MONKS AT THE FED RECEDE BEHIND THEIR IVORY GATES MANY ON WALL STREET WERE QUICK TO APPLAUD THE FED MERRILL LYNCH ECONOMISTS AGREED THAT A TIGHTENING MOVE WAS NEEDED AT THIS TIME THE PRESIDENT OF THE NATIONAL ASSOCIATION OF MANUFACTURERS JERRY JASINOWSKI BLESSED THE MODEST MOVE BUT SAID THE FED SHOULDN'T DO MORE HOWEVER SENATOR PAUL SARBANES A MARYLAND DEMOCRAT LIKENED THE FED TO QUOTE A BOMBER COMING ALONG AND STRIKING A FARMHOUSE BECAUSE YOU THINK THAT THE VILLAIN INFLATION IS INSIDE WHEN IN FACT WHAT'S INSIDE IS A HAPPY FAMILY APPRECIATING THE RESTORATION OF ECONOMIC GROWTH QUOTE BUT THERE WAS NO SUCH VIEW WITHIN THE CLINTON TEAM WHICH HAS AVOIDED THE SLIGHTEST CRITICISM OF THE FED EVER SINCE MR. CLINTON'S FIRST MEETING WITH THE FED CHIEF IN LITTLE ROCK ARKANSAS IN DECEMBER NINETEEN NINETY TWO I THINK THEY HAVE TAKEN A VERY CONSTRUCTIVE ATTITUDE TOWARD DEALING WITH THE FED TOWARD MONETARY POLICY AND TOWARD ECONOMIC POLICY MAKING IN GENERAL SAYS THE FED'S MR. MULLINS WHEN THE FED CHAIRMAN LAST JULY LOUDLY WARNED THAT SHORT TERM RATES WOULD HAVE TO RISE THE BOND MARKET PUSHED UP LONG TERM RATES IN RESPONSE IN A PREVIEW OF TENSION THAT COULD STILL OCCUR IF THE FED MOVES TOO AGGRESSIVELY MR. GREENSPAN'S COMMENTS LED SHORTLY THEREAFTER TO A TENSE EXCHANGE BETWEEN ASSISTANT TREASURY SECRETARY ALICIA MUNNELL AND MR. GREENSPAN AT A LUNCH WITH OTHER FED AND TREASURY OFFICIALS BY PROVOKING AN INCREASE IN LONG TERM RATES MS. MUNNELL COMPLAINED THE CHAIRMAN HAD UNDERCUT THE ADMINISTRATION AS IT WAS TRYING TO GET ITS DEFICIT REDUCTION SCHEME THROUGH CONGRESS MR. GREENSPAN DENIED THAT AND SAID HE HAD A RESPONSIBILITY TO WARN PEOPLE THAT RATES WOULD RISE BUT MR. GREENSPAN IS RELYING ON MR. CLINTON PERHAPS MORE THAN PAST FED CHAIRMEN HAVE RELIED ON PAST PRESIDENTS AN INCREASINGLY HOSTILE CONGRESS THREATENS TO RESTRUCTURE THE FED AND FORCE IT TO BE MORE OPEN AND EVEN MR. BENTSEN'S TREASURY HAS PROPOSED A REGULATORY REORGANIZATION THAT WOULD YANK AWAY MUCH OF THE FED'S AUTHORITY OVER BANKS MESSRS CLINTON AND GREENSPAN MAKE AN ODD COUPLE THE FED CHAIRMAN WHO TURNS SIXTY EIGHT NEXT MONTH IS A REPUBLICAN STALWART WHO CAME TO WASHINGTON AS PRESIDENT FORD'S ECONOMIC ADVISER TWENTY YEARS AGO AND WAS AN EARLY INFLUENCE ON PRESIDENT REAGAN'S ECONOMIC STRATEGY HIS EARLY MENTOR WAS PHILOSOPHER AYN RAND WHO ONCE WROTE THAT EVERY GOVERNMENT INTERFERENCE IN THE ECONOMY CONSISTS OF GIVING AN UNEARNED BENEFIT EXTORTED BY FORCE TO SOME MEN AT THE EXPENSE OF OTHERS MR. CLINTON FORTY SEVEN AND A DEMOCRATIC BABY BOOMER GOT HIS EARLY POLITICAL EDUCATION FROM NOW LABOR SECRETARY ROBERT REICH WHO BELIEVES IN ACTIVIST GOVERNMENT MR. GREENSPAN A CONSUMMATE INSIDER HASN'T HAD ANY DIFFICULTY MIXING WITH THE NEW WASHINGTON ELITE HE MINGLED WITH CLINTON APPOINTEES AT MAJOR LEAGUE BASEBALL'S ALL STAR GAME IN BALTIMORE AND SHOWED UP AT THE NEW YEAR'S VERSION OF RENAISSANCE WEEKEND A TALKFEST THAT FOR YEARS HAS SERVED AS THE PREMIERE NETWORKING EVENT FOR THE CLINTON CROWD SOME AT THE CENTRAL BANK FRET THAT THE ALLIANCE MAY BE TOO CLOSE THE GRUMBLING AT THE FED BEGAN A YEAR AGO WHEN MR. GREENSPAN TURNED UP AT HILLARY CLINTON'S SIDE WHEN THE PRESIDENT UNVEILED HIS ECONOMIC PLAN TO CONGRESS AND THE NATION ON T. V. MY JAW DROPPED ABOUT A FOOT SAYS THE PRESIDENT OF ONE FED REGIONAL BANK THEN APPEARING BEFORE THE SENATE BANKING COMMITTEE DAYS AFTER MR. CLINTON DETAILED HIS DEFICIT REDUCTION PROPOSAL THE FED CHAIRMAN THRILLED THE WHITE HOUSE AND INFURIATED REPUBLICANS BY DECLARING MR. CLINTON'S PLAN AS SERIOUS CREDIBLE AND DETAILED WHETHER BECAUSE OF HIS NATURE OR HIS VIEW OF HIS ROLE MR. GREENSPAN SEEMS DRAWN TO THE PRESIDENCY NO MATTER WHO OCCUPIES IT IN THE BUSH YEARS MR. GREENSPAN DREW FIRE FROM INSIDE THE FED WHEN HE ACCEPTED MR. BUSH'S REQUEST TO CHAIR A COMMISSION WHICH WAS NEVER FORMED TO RESOLVE TECHNICAL QUESTIONS SURROUNDING POLITICALLY CONTENTIOUS PROPOSALS TO CUT CAPITAL GAINS TAX RATES AND BACK IN NINETEEN EIGHTY NINE HE TOLD CONGRESS THAT MR. BUSH'S MINI BUDGET WHICH WASN'T EVEN INTENDED TO BE A MEANINGFUL ATTEMPT AT DEFICIT REDUCTION WAS SIGNIFICANT ENOUGH TO HAVE A MAJOR IMPACT ON THE ECONOMY VETERAN GREENSPAN WATCHERS SAY ALL THIS REFLECTS THE FED CHAIRMAN'S PERSONALITY HE LIKES BEING A WASHINGTON INSIDER QUOTE HE KNOWS EVERYBODY ON A FIRST NAME BASIS HE HAS BEEN IN AND OUT OF VARIOUS ADMINISTRATIONS WHEN HE HAD HIS NEW YORK CONSULTING FIRM HE WAS IN WASHINGTON MORE THAN IN NEW YORK SAYS FORMER FED VICE CHAIRMAN PRESTON MARTIN NOTWITHSTANDING MR. GREENSPAN'S CONNECTIONS THE FED WAS UNABLE TO HEAD OFF A TREASURY SCHEME TO CONSOLIDATE FEDERAL BANKING REGULATION IN A NEW SUPER AGENCY WHICH WOULD ASSUME MANY OF THE FED'S CURRENT REGULATORY POWERS AFTER LABORIOUS NEGOTIATIONS FED OFFICIALS THOUGHT THEY HAD REACHED A COMPROMISE WITH THE TREASURY IN NOVEMBER AND WERE STUNNED WHEN THE TREASURY DISOWNED IT TREASURY OFFICIALS DENY THEY HAD ACTUALLY REACHED AN AGREEMENT BUT FOR REASONS THAT STILL PUZZLE FED INSIDERS AND WHITE HOUSE OFFICIALS MR. GREENSPAN FAILED TO SOUND ALARMS AT THE WHITE HOUSE WHEN THE TREASURY TOLD HIM IT WAS PROPOSING A PLAN THAT WOULD COST THE CENTRAL BANK UP TO FIFTEEN PERCENT OF ITS EMPLOYEES THEN AFTER TEN DAYS OF SILENCE MR. GREENSPAN AND OTHER FED OFFICIALS MOUNTED A PUBLIC RELATIONS BLITZ THROUGH INTERVIEWS AND OP ED PIECES MR. BENTSEN WHO SAYS HE WAS SURPRISED BY THE FED'S STRONG RESISTANCE REPLIED THAT THE CENTRAL BANK WAS JUST PROTECTING ITS TURF MR. CLINTON'S WHITE HOUSE ECONOMIC ADVISERS WERE AGHAST THAT THE RELATIONSHIP THEY HAD CAREFULLY CULTIVATED HAD TURNED TO OPEN WARFARE THEN MR. CLINTON WEIGHED IN ASKED ABOUT THE FED'S FEARS IN AN INTERVIEW LAST DECEMBER MR. CLINTON REFERRED TO THE BANKING PLAN NOT AS HIS OWN BUT AS MR. BENTSEN'S AND ADDED I KNOW THAT HE WOULD NOT NORMALLY DO ANYTHING THAT WOULD MAKE THEM LESS ABLE TO DO WHAT THEY'RE SUPPOSED TO LATER AT A MEETING WITH HIS ECONOMIC ADVISERS THE PRESIDENT ONLY HALF JOKINGLY ASKED MR. BENTSEN FOR REASSURANCE THAT THE PLAN WOULDN'T UNDERMINE THE FED MR. BENTSEN BLUSHED AND NODDED IN AFFIRMATION ACCORDING TO AN OFFICIAL WHO ATTENDED MR. BENTSEN'S BANKING PLAN DIDN'T GET A MENTION IN MR. CLINTON'S STATE OF THE UNION SPEECH AND AT LAST REPORT WHITE HOUSE ECONOMIC ADVISERS WERE SOUNDING OUT THE TREASURY TO SEE WHETHER A COMPROMISE MIGHT BE REACHED CANADA'S UNEMPLOYMENT RATE ROSE TO ELEVEN POINT FOUR PERCENT OF THE CIVILIAN LABOR FORCE IN JANUARY FROM ELEVEN POINT TWO PERCENT IN DECEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID FINANCE MINISTER PAUL MARTIN ATTRIBUTED THE INCREASE PARTLY TO A TEMPORARY SHUTDOWN OF SOME AUTO PLANTS FOR RETOOLING FOR NEW MODELS HE SAID THE JANUARY FIGURE SHOWS QUOTE THE ABSOLUTE NECESSITY OF GETTING ON WITH GIVING THIS ECONOMY THE CAPACITY TO CREATE JOBS QUOTE A PANEL OF MEDICAL EXPERTS WILL DECIDE THIS WEEK WHETHER A BACTERIUM IS THE UNDERLYING CAUSE OF PEPTIC ULCERS AND IF SO WHETHER DOCTORS SHOULD BEGIN TRYING TO TREAT ULCERS BY ERADICATING THE BACTERIUM THE DECISION COULD DRAMATICALLY AFFECT THE WAY DOCTORS TREAT THE TWENTY FIVE MILLION AMERICANS WHO WILL DEVELOP A PEPTIC ULCER AT LEAST ONCE IN THEIR LIFETIMES INCLUDING THE FOUR MILLION WHO HAVE THE PAINFUL AILMENTS THE RULING IS BEING ANXIOUSLY AWAITED NOT ONLY BY ULCER PATIENTS AND THEIR DOCTORS BUT BY SOME BIG DRUG MAKERS AND THEIR INVESTORS TWO ULCER MEDICATIONS ARE AMONG THE BEST SELLING DRUGS IN THE WORLD GLAXO HOLDINGS' XANTAC BRAND OF RANTIDINE WITH ESTIMATED WORLD WIDE SALES OF TWO BILLION DOLLARS ANNUALLY AND SMITHKLINE BEECHAM'S TAGAMET BRAND OF CIMETIDINE WITH ANNUAL SALES OF ONE BILLION DOLLARS MOST PEPTIC ULCER PATIENTS ARE TREATED WITH DRUGS THAT BLOCK THE PRODUCTION OF STOMACH ACID THESE DRUGS CALLED H. TWO ANTAGONISTS ARE HIGHLY EFFECTIVE IN HEALING ULCERS BUT UNLESS TAKEN FOR MONTHS OR YEARS AFTERWARD DON'T PREVENT RECURRENCE IN MANY PATIENTS IF THE BACTERIUM IS FOUND GUILTY THE EXPERTS WILL THEN RULE ON WHETHER SEVERAL DAYS OF ANTIBIOTIC TREATMENT WILL SAFELY AND EFFECTIVELY ERADICATE IT CURING THE PATIENT OF ULCER DISEASE ALTHOUGH THE SHORT TERM ANTIBIOTIC THERAPY WILL BE COMBINED WITH AN ULCER HEALING H. TWO ANTAGONIST IT COULD FREE THE PATIENT FROM LONG TERM USE OF THE H. TWO ANTAGONISTS IT ALSO MAY SEVERELY LIMIT THE H. TWO ANTAGONISTICS' MARKET THE PANEL OF FIFTEEN MEDICAL EXPERTS IS BEING CONVENED HERE THIS MORNING BY THE NATIONAL INSTITUTES OF HEALTH IN A PROCEDURE CALLED A CONSENSUS DEVELOPMENT CONFERENCE THE EXPERTS ARE CHOSEN BECAUSE THEY HAVEN'T BEEN INVOLVED IN RESEARCH ON THE BACTERIUM AND HAVEN'T TAKEN SIDES ON SOME OF THE MORE CONTROVERSIAL ISSUES FOR A DAY AND A HALF THEY'LL LISTEN TO PRESENTATIONS BY RESEARCHERS AND THEN REACH A CONSENSUS CHAIRMAN TADATAKA YAMADA HEAD OF THE INTERNAL MEDICINE DEPARTMENT AT THE UNIVERSITY OF MICHIGAN MEDICAL SCHOOL IN ANN ARBOR SAYS THE PANEL ALSO WILL TRY TO AGREE ON THE BEST WAY TO DIAGNOSE INFECTIONS OF THE BACTERIUM WHICH PATIENTS SHOULD BE TREATED AND THE BEST WAY TO TREAT THEM ALTHOUGH THE ISSUE PROBABLY WON'T BE RESOLVED THE EXPERTS ALSO WILL CONSIDER THE POSSIBLE LINK OF THE BACTERIUM TO STOMACH CANCER IF PROVED DOCTOR YAMADA EXPLAINS IT RAISES THE QUESTION OF WHETHER DOCTORS SHOULD TRY TO PREVENT THE CANCER BY ERADICATING THE BACTERIUM FROM THE INTESTINES OF MILLIONS OF PEOPLE WHO ARE INFECTED BUT DON'T HAVE ULCERS OR OTHER CONSEQUENCES BUT THE LINK BETWEEN PEPTIC ULCERS AND THE BACTERIUM IS THE PANEL'S FIRST ORDER OF BUSINESS PEPTIC ULCERS ARE PERFORATIONS OF THE MUCOUS MEMBRANE LINING THE STOMACH OR MORE COMMONLY THE DUODENUM WHERE THE SMALL INTESTINE JOINS THE STOMACH THE ULCER EXPOSES UNDERLYING TISSUES TO THE ERODING EFFECTS OF STOMACH ACID THE RESULTING PAIN WHICH CAN RANGE FROM A MILD HUNGER LIKE FEELING TO A SEVERE BURNING SENSATION CAN BE RELIEVED WITH ANTACIDS SOME STOMACH ULCERS ARE CAUSED BY CHRONIC USE OF DRUGS LIKE ASPIRIN OTHERS ARE DUE TO GENETIC DISORDERS OR TUMORS BUT THE CAUSE OF THE LARGE MAJORITY OF PEPTIC ULCERS HAS BEEN A MYSTERY EVIDENCE THAT PSYCHOLOGICAL STRESS CAUSES ULCERS BY INCREASING OUTPUT OF STOMACH ACID AS POPULARLY BELIEVED WAS ALWAYS INCONCLUSIVE MEDICAL SCIENTISTS SAY A DOZEN YEARS AGO GASTROENTEROLOGISTS IN AUSTRALIA DISCOVERED THAT SOME ULCER PATIENTS HARBORED A STRANGE HELICALSHAPED BACTERIUM IN A TINY STRUCTURE THE PYLORUS THAT LIES AT THE BOTTOM END OF THE STOMACH ONE OF THEM BARRY MARSHALL NOW AT THE UNIVERSITY OF VIRGINIA SPECULATED THAT THE BACTERIUM WAS THE CAUSE OF THE ULCERS LAUNCHING A DECADE OF CONTROVERSY AND RESEARCH NOW THE DATA ARE INCONTROVERTIBLE THAT THE BACTERIUM CAN CAUSE PEPTIC ULCERS SAYS GASTROENTEROLOGIST DAVID GRAHAM OF THE VETERANS ADMINISTRATION MEDICAL CENTER IN HOUSTON BUT PRACTICING DOCTORS HAVE BEEN SLOW TO TRY DIAGNOSING AND THEN ERADICATING THE BACTERIAL INFECTION DOCTOR YAMADA SUGGESTS THAT MANY PHYSICIANS ARE WAITING FOR THE RESOLUTION OF SOME OF THE ISSUES THE PANEL WILL TACKLE OTHERS SUGGEST THERE IS A PROBLEM OF GETTING THE WORD OUT TO DOCTORS QUOTE THERE'S NO MARKETING SUPPORT FOR THE ANTIBACTERIAL SIDE QUOTE OF TREATING PEPTIC ULCERS SAYS HEMANT K. SHAH AN INDEPENDENT SECURITIES ANALYST SPECIALIZING IN THE DRUG INDUSTRY HE EXPLAINS THAT WHILE GLAXO SMITHKLINE AND OTHERS HAVE SALES PEOPLE PUSHING THE H. TWO ANTAGONISTS TO DOCTORS THERE IS NO COMPARABLE SALES FORCE BEHIND THE USE OF ANTIBIOTICS FOR PEPTIC ULCERS MANY DOCTORS MAY NOT HAVE BEEN FULLY AWARE OF THE EVIDENCE IMPLICATING THE BACTERIUM MOREOVER MR. SHAH ADDS MANY PEOPLE WHO USE THE H. TWO ANTAGONISTS ARE SATISFIED WITH THEM SINCE THESE DRUGS REALLY HELP THUS THERE ISN'T ANY STRONG PRESSURE FROM PATIENTS FOR A NEW THERAPY MR. SHAH ESTIMATES THAT SIXTY PERCENT OF THE ULCER DRUGS' SALES ARE TO PATIENTS ON LONG TERM MAINTENANCE THERAPY WHICH WOULDN'T BE NECESSARY IF ANTIBIOTICS CURED PEPTIC ULCER DISEASE THE OTHERS ARE TAKING THE DRUGS TO HEAL ULCERS BUT MANY WILL GO ON MAINTENANCE THERAPY IN THE FUTURE HE NOTES IF THIS ANTIBACTERIAL APPROACH IS PROVEN THE WAY TO GO THEN ABOUT THREE QUARTERS OF THE H. TWO MARKET IS AT STAKE MR. SHAH SAYS U. S. AIR SAID ITS JANUARY TRAFFIC ROSE SLIGHTLY TO TWO POINT FIVE THREE BILLION REVENUE PASSENGER MILES FROM TWO POINT FIVE ONE BILLION REVENUE PASSENGER MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO FIFTY TWO POINT EIGHT PERCENT FROM FIFTY POINT SEVEN PERCENT IF HIGH TECH MEANT HOT STOCK IN THE EIGHTIES PRIVATIZATION SEEMS TO BE THE MANTRA OF INVESTING IN THE NINETIES LAST WEEK THE S. G. WARBURG GROUP AND KLEINWORT BENSON GROUP P. L. C. SAID THEY MAY TOGETHER RAISE MORE THAN ONE BILLION POUNDS ONE POINT FIVE BILLION DOLLARS IN THE U. K. TO INVEST IN EUROPEAN COMPANIES GOING PRIVATE GUINNESS FLIGHT WHICH IS EIGHTY PERCENT OWNED BY GUINNESS MAHON A UNIT OF BANK OF YOKOHAMA LAUNCHES ITS GLOBAL PRIVATIZATION UNIT TRUST OR MUTUAL FUND FEBRUARY FOURTEENTH C. S. HOLDING A. G.'S C. S. FIRST BOSTON UNIT WANTS TO RAISE TWO HUNDRED MILLION DOLLARS FOR EASTERN EUROPEAN STOCK MARKETS FIDELITY INVESTMENTS PLANS A GLOBAL PRIVATIZATION MUTUAL FUND IN MARCH AND THE FRAMLINGTON GROUP P. L. C.'S RUSSIAN INVESTMENT FUND RAISED FIFTEEN MILLION DOLLARS MORE THAN EXPECTED WHEN IT CLOSED IN DECEMBER NINETEEN NINETY THREE PRIVATIZATION QUOTE IS VERY SEXY QUOTE NOW SAYS ONE INVESTMENT PROFESSIONAL DON'T ASK WHY OTHER MARKET PROFESSIONALS SAY IT HAS A LOT TO DO WITH THE SUCCESS OF BRITISH PRIVATIZATION PROGRAMS UNDER PRIME MINISTER MARGARET THATCHER IN THE EIGHTIES MOST OF THE FUNDS ANNOUNCED SO FAR ARE AIMED AT U. K. INVESTORS WHO WATCHED SHARES OF COMPANIES SUCH AS BRITISH TELECOMMUNICATIONS P. L. C. AND BRITISH AIRWAYS P. L. C. OUTPERFORM THE U. K. MARKET ONCE THEY WERE WRESTED FROM THE HANDS OF THE STATE WE DID A STUDY IN OUR PROSPECTUS SAYS LOUGH CALLAHAN DIRECTOR OF MERCURY ASSET MANAGEMENT P. L. C. WHICH HAS INITIALLY RAISED THREE HUNDRED TWENTY FIVE MILLION POUNDS FOUR HUNDRED EIGHTY FIVE MILLION DOLLARS FOR THE WARBURG INVESTMENT TRUST CALLED MERCURY EUROPEAN PRIVATIZATION TRUST OVER THE LAST YEAR THE PRIVATIZED COMPANIES WENT UP BY FIFTY TWO PERCENT AS COMPARED TO THE F. T. ONE HUNDRED INDEX OF TWENTY FIVE PERCENT ADDS MARK HOWDLE EQUITY STRATEGIST AT J. P. MORGAN EVERYBODY WHO IS HALF AWARE KNOWS WHAT A GOOD THING THE BRITISH PRIVATIZATIONS WERE IN THE EIGHTIES ANDREW COUCH FUND MANAGER AT GUINNESS FLIGHT SAYS HE WAS STUNNED TO LEARN LAST SUMMER THAT SHARES OF PRIVATIZED BRITISH COMPANIES ROSE NEARLY TWICE AS FAST AS THE OVERALL U. K. MARKET DURING THE LAST TEN YEARS THE AREA IS RED HOT HE SAYS OF COURSE NO ONE KNOWS WHETHER A SIMPLE CHANGE OF OWNERSHIP WILL MAKE A SLEW OF STATE OWNED COMPANIES IN FRANCE ITALY SPAIN GERMANY AND EVEN HUNGARY POLAND AND THE CZECH REPUBLIC MORE EFFICIENT MORE PROFITABLE AND THUS MORE VALUABLE CURRENCY RISKS WILL ADD AN ELEMENT ABSENT FROM U. K. PRIVATIZATIONS BUT THE FACT THAT WESTERN EUROPEAN GOVERNMENTS EXPECT TO SELL ABOUT ONE HUNDRED NINETY BILLION DOLLARS WORTH OF STOCK IN STATE OWNED COMPANIES WILL CERTAINLY TEST THE MARKET J. P. MORGAN AND COMPANY EXPECTS ANOTHER ONE HUNDRED BILLION DOLLARS IN WESTERN DEALS YET TO BE ANNOUNCED SUCH NUMBERS DWARF THE MONEY RAISED THUS FAR BUT THERE'S HOPE THAT ALL THIS NEW EQUITY WILL INDEED BE SOAKED UP BY BUYERS MR. COUCH POINTS OUT THAT COMPANIES UNDERGOING PRIVATIZATION TEND TO BE ASSET RICH WITH STRONG BALANCE SHEETS AND NEAR MONOPOLIES IN THEIR MARKET HE HOPES TO RAISE THIRTY MILLION POUNDS TO FORTY MILLION POUNDS KLEINWORT BENSON SAYS IT INITIALLY EXPECTED TO RAISE ONLY ABOUT FORTY MILLION POUNDS WHEN IT STARTED OUT LAST DECEMBER THE OFFER WAS OVERSUBSCRIBED TO THE TUNE OF EIGHT HUNDRED EIGHTY MILLION POUNDS WITH BOTH INSTITUTIONS AND RETAIL CUSTOMERS EXPRESSING INTEREST SIMON WHITE MANAGING DIRECTOR OF KLEINWORT BENSON INVESTMENT TRUSTS SAYS INSTITUTIONAL CLIENTS FIND BUYING STOCK IN FOREIGN COMPANIES BOTHERSOME BECAUSE OF ADMINISTRATION PROCESSES AS WELL AS ALLOCATION LIMITS PLACED BY COUNTRIES ON PURCHASES BY FOREIGN ENTITIES THE TRUST SELLS A FIXED NUMBER OF SHARES TO BE LATER TRADED ON THE LONDON STOCK EXCHANGE ELIMINATING MUCH OF THE HASSLE QUOTE APPLYING FOR OUR FUND GAVE THEM TWO BITES OF THE CHERRY QUOTE SAYS MR. WHITE IT ALSO OF COURSE LETS FUND MANAGERS TAP INTO PRIVATIZATION MANIA EARNING FEES OF SOMETHING LESS THAN ONE PERCENT ANNUALLY OF THE FUNDS' ASSETS HARDER TO EXPLAIN IS THE SUCCESS OF THE FRAMLINGTON RUSSIAN FUND THAT FUND HAS THE BACKING OF THE EUROPEAN BANK FOR RECONSTRUCTION AND FINANCE WHICH INVESTED SIXTEEN POINT SIX MILLION DOLLARS AND OF THE INTERNATIONAL FINANCE CORPORATION AN ARM OF THE WORLD BANK WHICH INVESTED EIGHT MILLION DOLLARS IT ORIGINALLY SOUGHT A TOTAL OF FIFTY MILLION DOLLARS BUT HEAVY DEMAND FROM U. S. INSTITUTIONAL INVESTORS BROUGHT THE TOTAL TO SIXTY FIVE MILLION DOLLARS UNLIKE THE OTHER FUNDS HOWEVER THE FRAMLINGTON FUND IS FUNDAMENTALLY A VENTURE CAPITAL VEHICLE A CLOSED END FUND WITH A TEN YEAR LIFE ORGANIZED UNDER THE LAWS OF LUXEMBOURG INVESTORS WERE REQUIRED TO PUT UP A MINIMUM OF ONE HUNDRED THOUSAND DOLLARS THE FUND WILL INVEST IN RUSSIAN COMPANIES WITH THE ABILITY TO EARN HARD CURRENCY INVESTMENTS ARE EXPECTED TO BE HELD FOR A MINIMUM OF FIVE YEARS CCF ASSET MANAGEMENT RUSSIA A RUSSIAN COMPANY INCORPORATED BY FRAMLINGTON IS ACTING AS INVESTMENT ADVISERS EMPLOYING EIGHT RUSSIANS AS ANALYSTS IN MOSCOW RUSSIA IS TOO RISKY FOR U. K. FUNDS TARGETING ORDINARY PEOPLE MR. COUCH SAYS HIS FUND WILL AVOID EASTERN EUROPE ALTOGETHER FOR THE FIRST FEW YEARS FOCUSING INSTEAD ON WESTERN EUROPE SOUTHEAST ASIA AND AUSTRALASIA AS WELL AS TURKEY GREECE PORTUGAL AND SOUTH AMERICA SOME OF THE EMERGING MARKETS ARE TRAVELING ON HOPE HE SAYS C. D. RADIO INCORPORATED AN INITIAL OFFERING OF FOUR POINT FIVE MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR SIX HUNDRED SEVENTY FIVE THOUSAND ADDITIONAL SHARES VIA SEIDLER COMPANIES AND FIRST MARATHON SECURITIES LIMITED CIBER INCORPORATED AN INITIAL OFFERING OF ONE POINT SIX MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR TWO HUNDRED FORTY THOUSAND ADDITIONAL SHARES VIA HANIFEN IMHOFF INCORPORATED INTERNATIONAL LOTTERY INCORPORATED AN INITIAL OFFERING OF ONE MILLION FIFTY THOUSAND COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR ONE HUNDRED FIFTY SEVEN THOUSAND FIVE HUNDRED ADDITIONAL SHARES VIA INTERSTATE SLASH JOHNSON LANE CORPORATION AND STIFEL NICOLAUS AND COMPANY MAXWELL SHOE COMPANY AN INITIAL OFFERING OF TWO POINT FIVE MILLION CLASS A COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR THREE HUNDRED SEVENTY FIVE THOUSAND ADDITIONAL SHARES VIA BEAR STEARNS AND COMPANY ROUGE STEEL COMPANY AN INITIAL OFFERING OF SEVEN MILLION CLASS A COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR ONE MILLION FIFTY THOUSAND ADDITIONAL SHARES VIA MORGAN STANLEY AND COMPANY C. S. FIRST BOSTON AND PAINEWEBBER INCORPORATED TEXAS REGIONAL BANCSHARES INCORPORATED AN INITIAL OFFERING OF ONE POINT TWO MILLION SHARES WITH AN OVERALLOTMENT OPTION OF AN ADDITIONAL ONE HUNDRED EIGHTY THOUSAND SHARES VIA ALEXANDER BROWN AND SONS INCORPORATED PETER W. SOGNEFEST FIFTY TWO YEARS OLD HAS RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER VICKI L. MARION FORTY A SENIOR VICE PRESIDENT HAS BEEN NAMED ACTING PRESIDENT AND CHIEF EXECUTIVE OFFICER IN THE FEVERISH INVESTOR CLIMATE CURRENTLY SURROUNDING ENTERTAINMENT COMPANIES REPORTS CONTINUE TO CIRCULATE ABOUT POSSIBLE PLANS BY JAPANESE PARENTS OF MOVIE STUDIOS TO SPIN OFF PART OF THEIR ASSETS THE MOST RECENT OF THESE REPORTS THAT MATSUSHITA ELECTRIC INDUSTRIAL COMPANY OF JAPAN WAS CONSIDERING AN OFFERING OF M. C. A. INCORPORATED SHARES TO THE PUBLIC WAS VIGOROUSLY DENIED BY EXECUTIVES CLOSE TO THE SITUATION M. C. A. WOULDN'T COMMENT ON THE REPORT WHICH APPEARED IN SATURDAY'S EDITIONS OF THE LOS ANGELES TIMES THESE INDIVIDUALS SAID A FAR MORE LIKELY SCENARIO BUT ONE STILL IN THE DISCUSSION STAGE AND PERHAPS FAR OFF WAS SOME FORM OF PARTNERSHIP BY M. C. A. WITH A CABLE OR TELEPHONE COMPANY MOST PARTICULARLY TELE COMMUNICATIONS INCORPORATED THE CABLE GIANT WHICH HAS AGREED TO BE ACQUIRED BY BELL ATLANTIC CORPORATION T. C. I. HAS A BEVY OF ENTERTAINMENT ASSETS CONCENTRATED IN ITS LIBERTY MEDIA SPINOFF WHICH MIGHT BE COMBINED WITH M. C. A. TO LEAVE OUTSIDERS WITH A TWENTY FIVE PERCENT TO FORTY NINE PERCENT STAKE IN THE NEW COMPANY AND M. C. A. WITH A STAKE IN LIBERTY BUT AGAIN WITH THE CONSUMMATION OF THE MERGER BETWEEN BELL ATLANTIC AND T. C. I. MONTHS AWAY THEY CAUTION THAT THE TALKS MAY TAKE A LONG TIME TO REACH FRUITION OTHERS POINT TO A HISTORICAL RELUCTANCE FOR MATSUSHITA TO MAKE A MOVE BEFORE ACTION IS TAKEN BY ITS MORE AGGRESSIVE COMPETITOR SONY CORPORATION SONY LONG HAS BEEN SAID TO BE CONSIDERING SPINNING OFF A STAKE IN ITS COLUMBIA PICTURES AND TRI STAR PICTURES UNITS TO THE PUBLIC AND HAS ADVERTISED ITS DESIRE TO TAKE ON A STRATEGIC PARTNER WHILE DENYING THAT ANY DISCUSSIONS ARE TAKING PLACE INDIVIDUALS ACKNOWLEDGE THAT SELLING PUBLIC SHARES MIGHT MAKE GOOD SENSE FOR MATSUSHITA AND THAT A WIDE RANGE OF POSSIBILITIES HAVE BEEN EXPLORED QUOTE PEOPLE TALK ABOUT EVERYTHING QUOTE ONE INDIVIDUAL SAID THESE INDIVIDUALS SAY THAT EVEN IF MATSUSHITA DID SELL A STAKE TO A CABLE OR TELEPHONE COMPANY IT COULD ALSO RAISE CASH AND GIVE INCENTIVES TO ITS U. S. MANAGEMENT BY MAKING SHARES AVAILABLE TO THE PUBLIC IT WOULD ALSO GIVE EXECUTIVES AN IDEA OF HOW THE MARKET VALUES M. C. A. ACQUIRED FOR MORE THAN SIX BILLION DOLLARS IN NINETEEN NINETY THE COMPANY'S OPERATING RESULTS HAVE BEEN MIXED DESPITE SOME BRIGHT SPOTS LIKE LAST SUMMER'S MOVIE BLOCKBUSTER JURASSIC PARK AND SOLID THEME PARK ATTENDANCE BUT GROWING ENTHUSIASM FOR THE VALUE OF FILM AND T. V. PRODUCERS AS THE NATION BEGINS TO BE WIRED FOR INTERACTIVE ENTERTAINMENT ON DEMAND AN ARDOR THAT HAS VALUED PARAMOUNT COMMUNICATIONS INCORPORATED AT MORE THAN TEN BILLION DOLLARS HAS MADE MATSUSHITA'S INVESTMENT APPRECIATE AND MATSUSHITA WITH ITS CONSUMER ELECTRONICS BUSINESS FALTERING MIGHT LIKE AN OPPORTUNITY TO CASH OUT A PORTION OF THIS INVESTMENT M. D. C. HOLDINGS INCORPORATED SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED PLAN TO PURCHASE ONE HUNDRED PERCENT OF ITS RICHMOND HOMES INCORPORATED AFFILIATE M. D. C. SAID IT ISSUED SIX HUNDRED EIGHT THOUSAND SIX HUNDRED NINETY FIVE SHARES OF STOCK FOR THE THIRTY FIVE PERCENT OF RICHMOND HOMES OWNED BY TWO M. D. C. OFFICERS CHAIRMAN AND CHIEF EXECUTIVE LARRY A. MIZEL AND EXECUTIVE VICE PRESIDENT DAVID D. MANDARICH CIRCUIT CITY STORES INCORPORATED SAID JANUARY SALES WERE THREE HUNDRED FIFTY SEVEN POINT FIVE MILLION DOLLARS A TWENTY FOUR PERCENT INCREASE FROM YEAR EARLIER SALES OF TWO HUNDRED EIGHTY SEVEN POINT NINE MILLION DOLLARS SALES AT STORES OPEN MORE THAN ONE YEAR ROSE SIX PERCENT CIRCUIT CITY ALSO SAID IT REACHED AN AGREEMENT TO ASSUME THE LEASES OF EIGHTEEN LOS ANGELES AREA SILO STORES AS WELL AS THE EXTENDED SERVICE CONTRACTS ON MERCHANDISE PREVIOUSLY SOLD FROM THOSE STORES EFFECTIVE MARCH FIRST BOTH SILO AND CIRCUIT CITY ARE RETAILERS OF CONSUMER ELECTRONICS AND APPLIANCES IT'S A RUGGED STOCK MARKET SO LET'S PLAY IT THE HARD WAY SOME INVESTORS SAY HARD AS IN CAPITAL GOODS AS IN STEELMAKERS AND EVEN ALUMINUM COMPANIES IT IS A PUSH THAT SOME MARKET SKEPTICS DON'T AGREE WITH PARTICULARLY IN THE CASE OF THE ALUMINUM INDUSTRY WHERE EARNINGS HAVE BEEN POOR AMID RECORD LOW INFLATIONADJUSTED PRICES FOR THE METAL BUT THE BULLS ARE ADAMANT MAJOR ALUMINUM STOCKS HAVE JUMPED ELEVEN PERCENT SO FAR THIS YEAR AFTER PULLING OUT OF THE DOLDRUMS IN LATE NINETEEN NINETY THREE STEEL STOCKS THIS YEAR HAVE REMAINED STRONG AFTER A THIRTY ONE PERCENT JUMP IN NINETEEN NINETY THREE TWO OF WALL STREET'S BEST KNOWN SEERS VANGUARD GROUP'S JOHN NEFF AND LEHMAN BROTHERS MARKET GURU ELAINE GARZARELLI ARE BIG FANS OF ALUMINUM AND STEEL RESPECTIVELY QUOTE WE HAVE THE ALUMINUMS LARGE QUOTE MR. NEFF SAID FRIDAY ACKNOWLEDGING THAT QUOTE IT'S HARD TO WARM UP TO THEM IN TERMS OF CURRENT EARNINGS QUOTE MR. NEFF ENVISIONS AN EASING IN THE GLOBAL ALUMINUM GLUT AND GROWING ALUMINUM DEMAND BOTH FROM DETROIT AUTO MAKERS AND FROM WORLD WIDE USERS OF BEVERAGE CANS HIS BIGGEST ALUMINUM HOLDINGS ARE ALUMINUM COMPANY OF AMERICA AND REYNOLDS METALS DESPITE HAVING ABSORBED THE LATTER STOCK'S FIFTEEN PERCENT DECLINE IN NINETEEN NINETY THREE BUT MR. NEFF RECENTLY SOLD HIS ALUMAX FOR VALUATION REASONS HE SAYS MS. GARZARELLI MEANWHILE IS POUNDING THE TABLE FOR U. S. X. U. S. STEEL GROUP AND OTHER STEEL STOCKS WHICH FIT INTO HER SCENARIO OF A STRENGTHENING ECONOMY U. S. X. U. S. STEEL IS THE STEELMAKING UNIT OF U. S. X. CORPORATION AND TRADES ON ITS OWN ON THE BIG BOARD THIS IS THE STRONGEST UNDERPINNING I'VE SEEN FOR THIS ECONOMY SINCE NINETEEN SIXTY FIVE SHE TOLD AN INVESTORS' CONFERENCE IN ORLANDO FLORIDA LAST WEEK SHE RECENTLY UPGRADED THE METALS PAPER AND TRUCKING INDUSTRIES ARGUING THAT THIS IS THE NINETEEN SIXTIES ALL OVER AGAIN WHEN CAPITAL GOODS OUTPERFORM NONDURABLES SUCH AS TOBACCO AND DRUG STOCKS IN AN INTERVIEW FRIDAY MS. GARZARELLI ELABORATED THE REASON WE LIKE U. S. STEEL IS IT'S PROBABLY THE MOST CAPITAL INTENSIVE CAPITAL SPENDING STOCK YOU CAN THINK OF STEEL GOES INTO SPENDING ON PLANT ON MACHINERY JUST ABOUT EVERY BUILDING THERE IS THE STOCK IS EVEN MORE INVITING BY HER REASONING AFTER DECLINING ONE TO FORTY THREE IN FRIDAY'S MARKET DIVE STEELMAKERS ARE SELLING AS MUCH STEEL AS THEY CAN MAKE IN FACT FOR THE FIRST TIME EVER U. S. STEEL IS REVAMPING A HOT STRIP MILL ON THE FLY INSTEAD OF CLOSING DOWN THE MILL AT GARY INDIANA FOR A MONTH FOR THE NEARLY NINETY MILLION DOLLAR PROJECT IT'S IDLING THE OPERATION FOR FORTY EIGHT HOURS ONCE A MONTH U. S. STEEL DOESN'T WANT TO MISS OUT ON THE AUTO MARKET IT SUPPLIES MUCH OF THE STEEL FOR THE BEST SELLING FORD TAURUS THE STEEL INDUSTRY CONTINUES TO EXPECT HIGHER SHIPMENTS THIS YEAR THAN IN NINETEEN NINETY THREE ITSELF A STRONG YEAR AND WHILE THERE ARE SOME SIGNS OF RISING IMPORTS A BIG PART OF THAT IS BECAUSE U. S. STEELMAKERS CAN'T MAKE ENOUGH STEEL TO KEEP UP WITH DEMAND BETHLEHEM STEEL'S BURNS HARBOR INDIANA PLANT FOR INSTANCE IS IMPORTING SEMIFINISHED STEEL ANOTHER SIGN OF THE INDUSTRY'S STRENGTH ARMCO'S JOINT CARBON STEEL VENTURE WITH KAWASAKI STEEL CORPORATION OF JAPAN WILL BE PUT ON THE MARKET VIA AN INITIAL PUBLIC OFFERING SOME INVESTORS HAVE A HARDER TIME GETTING COMFORTABLE WITH ALUMINUM ALUMINUM STOCKS HAVE BEEN BUOYED BY THE RECENT ACCORD OUT OF BRUSSELS TO CUT GLOBAL OUTPUT BY ROUGHLY TEN PERCENT AN ATTEMPT TO ADDRESS OVERSUPPLY BUT WILL THE ACCORD STICK AFTER ALL THE CUTS ARE LARGELY VOLUNTARY MAVERICK PRODUCERS MAY CHOOSE TO IGNORE THEM IF PRICES RISE RUSSIAN SMELTERS DESPERATE FOR CURRENCY MAY NOT GO ALONG WITH THEIR GOVERNMENT'S WISHES TO SLASH PRODUCTION ALUMINUM COMPANY OF AMERICA KNOWN AS ALCOA JUST REPORTED A WIDER THAN EXPECTED QUARTERLY NET LOSS OF EIGHTY SIX POINT NINE MILLION DOLLARS OR ONE DOLLAR A SHARE IT'S CRAZY SAYS A LARGE NEW YORK INVESTOR WHO IS SHORTING THE STOCK THE BULLISH STORY IS FINE HE SAYS BUT NOT WHEN ALCOA'S STOCK PRICE AT SEVENTY SIX AND ONE EIGHTH QUOTE IS SELLING CLOSE TO ITS ALL TIME HIGH QUOTE A SHORT SALE IS A BET THAT A STOCK WILL DECLINE THE LAST TIME ALCOA STOCK SOLD AT THIS LEVEL WAS IN THE FIFTIES AND THEY WERE EARNING TEN DOLLARS A SHARE AND NOW THEY'RE LOSING MONEY THE INVESTOR GROWLS THE THING THAT'S IMPLAUSIBLE TO ME IS IF ALUMINUM PRICES ARE REALLY GOING UP THEN INFLATION IS BACK AND THAT'S BAD FOR THE MARKET INDEED THERE ISN'T UNIVERSAL AGREEMENT ABOUT THE METALS STOCKS EVEN AMONG PROPONENTS OF ONE METAL OR THE OTHER ALUMINUM FAN MR. NEFF MANAGER OF VANGUARD'S WINDSOR FUND HAS HIS DOUBTS ABOUT STEEL WE DID HAVE BIG HOLDINGS IN STEELS BUT THEY'VE HAD A PRETTY GOOD RUN AND WE'VE LIGHTENED UP THERE WITHOUT NAMING NAMES MR. NEFF SAYS TO UNDERSCORE THE HORROR OF THE NAZI ERA FILMMAKER STEVEN SPIELBERG SHOT QUOTE SCHINDLER'S LIST QUOTE MOSTLY IN BLACK AND WHITE AND USED A STARK DOCUMENTARY STYLE IN WASHINGTON'S NEW HOLOCAUST MUSEUM DESIGNER RALPH APPELBAUM RELIED ON A DIFFERENT WEAPON SPECTATOR INVOLVEMENT MR. APPELBAUM CONSTRUCTED A SCALE MODEL OF THE AUSCHWITZ DEATH CAMP REPLETE WITH CROSS SECTION VIEWS OF THE GAS CHAMBERS OVERLOOKING THE BARRACKS AT AUSCHWITZ VISITORS CAN LISTEN TO SURVIVORS DESCRIBING WHAT IT WAS LIKE TO LIVE THERE A BANK OF COMPUTER TERMINALS ALLOWS VISITORS TO CALL UP STORIES AND ARTICLES THAT DEPICT THE AMERICAN RESPONSE TO THE HOLOCAUST AT THE END OF THE EXHIBIT VISITORS CAN TAP INTO A GIANT DATABASE AND RETRIEVE INFORMATION THAT ISN'T ACCESSIBLE ELSEWHERE VISITORS ALSO RECEIVE THE NAME OF SPECIFIC HOLOCAUST VICTIMS AND CAN FOLLOW THEIR EXPERIENCES IN VARIOUS PLACES ON DISPLAY ALLOWING VISITORS TO INTERACT WITH DISPLAYS THROUGH VARIOUS MEDIA THESE PROJECTS AIM TO HELP THE SPECTATOR IDENTIFY WITH HISTORICAL EVENTS AND PEOPLE THEY ALSO REPRESENT A BIG STEP FOR THEIR CREATORS WHILE BIG COMPANIES EXPERIMENT WITH MULTIMEDIA AS A NEW SOURCE OF EARNINGS YEARS FROM NOW SMALLER FIRMS SUCH AS RALPH APPELBAUM ASSOCIATES ARE ALREADY EARNING PROFITS IN THE FIELD TACKLING MULTIMEDIA TECHNIQUES HAS MADE MANAGEMENT MORE COMPLEX BUT IT ALSO HAS HELPED FIRMS WIN FAR BIGGER CONTRACTS THAN THEY EVER ENJOYED BEFORE MOREOVER EXPERIENCE WITH THE NEW TECHNOLOGY GIVES FIRMS A MAJOR COMPETITIVE ADVANTAGE AGAINST OTHER DESIGN CONCERNS MUSEUMS AND PROFIT MAKING CORPORATIONS ALIKE CALL ON DESIGN BOUTIQUES SUCH AS APPELBAUM ASSOCIATES AND EDWIN SCHLOSSBERG INCORPORATED TO DRAW UPON MULTIMEDIA TECHNOLOGY AND ENGAGE AUDIENCES IN FUTURISTIC WAYS THE FINISHED WORKS MELD CONVENTIONAL DESIGNS WITH COMPLEX HIGH TECH CONSTRUCTIONS A FEW YEARS AGO THE SCHLOSSBERG AND APPELBAUM CONCERNS MAINLY RELIED ON ROUTINE JOBS FOR FIVE AND SIX DIGIT SUMS NOW THAT THE POSSIBILITIES OF MULTIMEDIA TECHNOLOGY HAVE EXPANDED RAPIDLY THE JOBS CAN RUN INTO SEVERAL MILLION DOLLARS MR. SCHLOSSBERG'S COMPANY RECENTLY DESIGNED THE PUBLIC SPACE INCLUDING A MUSEUM FOR SONY CORPORATION'S MADISON AVENUE HEADQUARTERS A SPRAWLING PLAZA WITH AN ESTIMATED PRICE TAG OF MORE THAN TWENTY MILLION DOLLARS THE CONCERN IS NOW WORKING ON A MULTIMILLION DOLLAR HIGH TECH CHILDREN'S MUSEUM IN OMAHA NEBRASKA ONLY TWO OR THREE YEARS AGO WE HAD TO TAKE ON SIX TO TEN PROJECTS A YEAR MR. SCHLOSSBERG SAYS NOW THREE TO SIX PROJECTS BRING IN THE SAME REVENUE IF NOT MORE HE ADDS MR. APPELBAUM'S NEW COMMISSIONS INCLUDE A LARGE DETROIT EXHIBIT THAT WILL CELEBRATE BLACK ENTREPRENEURSHIP AND THE ACHIEVEMENTS OF MOTOWN RECORDS AND ITS FOUNDER BARRY GORDY THE FIRM SAYS ITS FEE FOR REDESIGNING SIX EXHIBITS AT NEW YORK'S AMERICAN MUSEUM OF NATURAL HISTORY INCLUDING THE MUSEUM'S FAMED DINOSAURS WILL BE ABOUT TWENTY MILLION DOLLARS MULTIMEDIA TECHNOLOGY HAS GIVEN NEW IMPETUS TO INTERACTIVITY SAYS MICHAEL SPOCK VICE PRESIDENT OF PUBLIC PROGRAMS AT CHICAGO'S FIELD MUSEUM WITH MORE THAN EIGHT THOUSAND MUSEUMS SEARCHING FOR WAYS TO ATTRACT AUDIENCES AND CORPORATIONS LOOKING TO GET CLOSE TO THEIR CUSTOMERS THERE'S A REAL MARKET FOR THOSE WHO ARE EXPERIENCED IN SUCH DESIGNS ADDS THE OFFICIAL WHO PIONEERED SOME OF THE FIRST INTERACTIVE EXHIBITS AS A CURATOR OF BOSTON'S CHILDREN'S MUSEUM CREATING THESE NEW EXHIBITS MEANS MANAGING DIVERSITY MR. SCHLOSSBERG FOR EXAMPLE WORKS WITH A GROUP OF FORTY FIVE THAT INCLUDES ARCHITECTS INDUSTRIAL DESIGNERS SCENIC PAINTERS HISTORIANS PSYCHOLOGISTS EVEN POETS MR. APPELBAUM'S GROUP HAS FIFTY FIVE MEMBERS WITH EQUALLY VARIED BACKGROUNDS YOU NEED PEOPLE FROM A VERY WIDE MIX OF TRAINING AND BACKGROUND MR. SCHLOSSBERG SAYS I NEED PEOPLE WHO ARE NOT LIKE ME TO PRESENT FIVE OR SIX OR EVEN TEN WAYS TO APPROACH A SUBJECT HE SAYS GIANT MULTIMEDIA DESIGN ALSO TAKES RESEARCH AT THE SONY PROJECT FOCUS GROUPS AS WELL AS ROLE PLAYING BY THE DESIGN TEAMS YIELDED MANY OF THE QUESTIONS THAT PEOPLE WANTED TO HAVE ANSWERED THE MUSEUM PROJECT AT SONY PLAZA WHICH WILL OPEN NEXT MONTH AIMS TO SHOW HOW AUDIO AND VISUAL TECHNOLOGY HAS EVOLVED OVER THE PAST FIFTY YEARS WHEN VISITORS ENTER A COMPUTER USING DIGITAL TECHNOLOGY WILL CAPTURE THEIR FACES AND VOICES ON SMALL CARDS AS THEY WALK THROUGH THE EXHIBIT THEY CAN USE THE CARDS TO HEAR THEIR VOICES AND SEE THEIR PICTURES AS THEY WOULD HAVE BEEN DUPLICATED AT VARIOUS STAGES OF TECHNOLOGICAL DEVELOPMENT A BLACK AND WHITE PICTURE ON A NINETEEN FORTY FIVE TELEVISION SCREEN COMES ACROSS AS GRAINY AND BLURRED ON A MODERN DAY HIGH DEFINITION T. V. SCREEN IT IS REMARKABLY SHARP AND LIFELIKE AT THE HOLOCAUST MUSEUM MR. APPELBAUM FACED DIFFERENT PROBLEMS THERE ALREADY WAS AN ENORMOUS AMOUNT OF KNOWLEDGE ABOUT THE EVENTS SURROUNDING THE HOLOCAUST HE EXPLAINS AND HE DIDN'T WANT TO INUNDATE VISITORS WITH EXCESSIVE VISUAL MATERIAL PSYCHOLOGISTS ALSO WARNED AGAINST USING GRAPHIC VISUALS THAT COULD DISTURB CHILDREN THE FINAL DESIGN IS A MELANGE OF SIMPLE OBJECTS AND HIGH TECHNOLOGY PERSONAL ITEMS SUCH AS SHOES AND SUITCASES BECOME REMEMBRANCES OF VICTIMS AN OLD I. B. M. HOLLERITH COMPUTER A RAILROAD CAR ARE REMINDERS OF SIMPLE OBJECTS THAT BECOME TOOLS OF OPPRESSION INTERACTIVE AUDIO AND VIDEO MATERIALS PUT VISITORS IN CLOSE CONTACT WITH THE EVENTS QUOTE WE DIDN'T WANT TO CONFRONT AUDIENCES WITH THE HORRIBLE EXPERIENCE OF MURDER AND GENOCIDE THAT'S ALREADY BEEN DONE WE NEEDED TO USE THE TECHNOLOGY TO MAKE THEM UNDERSTAND WHY AND HOW SAYS MR. APPELBAUM MESSRS SCHLOSSBERG AND APPELBAUM ARE WINNING THE BIG MULTIMEDIA CONTRACTS PARTLY BECAUSE THEY HAVE HONED THEIR SKILLS ON SMALLER PROJECTS MR. SCHLOSSBERG STARTED HIS DESIGN FIRM IN NINETEEN SEVENTY SEVEN MAINLY CONCENTRATING ON EDUCATIONAL PROJECTS IN NINETEEN EIGHTY ONE HE DESIGNED A FARM IN MASSACHUSETTS TO TEACH HUMANE TREATMENT OF ANIMALS VISITORS HAVE TO WEAR AN OPTICAL MASK THAT ENABLES THEM TO SEE OBJECTS AS SHEEP SEE THEM AT BUSCH GARDENS IN WILLIAMSBURG VIRGINIA MR. SCHLOSSBERG RIGGED CHAIRS TO SIMULATE THE MOTION OF DIFFERENT TRAVEL MODES SUCH AS SPACE SHUTTLES SEA PLANES AND DOG SLEDS AT THE HENRY FORD MUSEUM IN DEARBORN MICHIGAN MR. SCHLOSSBERG DESIGNED A THREE THOUSAND TWO HUNDRED SQUARE FOOT MAZE OF TUBES PULLEYS LEVERS WHEELS ROPES CRANKS PEDALS VALVES AND FIVE THOUSAND BALLS OF VARIOUS COLORS TO HELP VISITORS UNDERSTAND THE ROLE OF TEAMWORK IN INNOVATION VISITORS DEVISE STRATEGIES TO SORT ALL THOSE BALLS AND CHANNEL THEM THROUGH THE MAZE THE MORAL OF THE GAME IF THEY DON'T WORK TOGETHER THEY CAN'T SOLVE THE PROBLEM E. GARRETT BEWKES THE THIRD SENIOR MANAGING DIRECTOR OF CORPORATE FINANCE AT BEAR STEARNS COMPANIES AND ONE OF ITS TOP THREE INVESTMENT BANKERS RESIGNED TO JOIN INVESTCORP AN INTERNATIONAL INVESTMENT GROUP BASED IN BAHRAIN MR. BEWKES FORTY THREE YEARS OLD WILL JOIN THE MANAGEMENT COMMITTEE OF INVESTCORP WHICH HAS A PORTFOLIO OF RETAIL COMPANIES IN THE U. S. AND OWNS ON BEHALF OF INVESTORS SUCH COMPANIES AS SAKS FIFTH AVENUE AND GUCCI GROUP MR. BEWKES WHO DIDN'T RETURN PHONE CALLS SPENT SEVEN YEARS AT THE NEW YORK INVESTMENT BANK AND SHARED THE CO HEAD OF INVESTMENT BANKING WITH TWO OTHER SENIOR EXECUTIVES MICHAEL JAY SOLOMON FIFTY SIX YEARS OLD SAID HE WILL LEAVE AS PRESIDENT OF TIME WARNER INCORPORATED'S WARNER BROTHERS INTERNATIONAL TELEVISION DISTRIBUTION ON APRIL FIRST TO FORM HIS OWN COMPANY IN LOS ANGELES TO SEEK INTERNATIONAL JOINT VENTURES IN ALL AREAS OF NEW COMMUNICATIONS TECHNOLOGY A SUCCESSOR HASN'T BEEN NAMED BUT COMPANY EXECUTIVES SAID A LEADING CONTENDER IS JEFFREY SCHLESINGER WHO HAD BEEN MR. SOLOMON'S SECOND IN COMMAND AT THE UNIT WHICH DISTRIBUTES ALL WARNER T. V. PROGRAMS OVERSEAS MR. SOLOMON WAS A CO FOUNDER OF TELEPICTURES CORPORATION IN NINETEEN SEVENTY EIGHT WHICH LATER MERGED WITH LORIMAR CORPORATION LORIMAR TELEPICTURES CORPORATION WAS IN TURN ACQUIRED BY WARNER BROTHERS IN NINETEEN EIGHTY NINE MR. SOLOMON WHOSE CONTRACT AT WARNER BROTHERS WAS TO EXPIRE SAID HE ALWAYS INTENDED TO GO OUT ON HIS OWN AGAIN QUOTE IT'S JUST MY PERSONALITY I'M AN ENTREPRENEUR HE SAID I FOUND NOTHING TO KEEP ME HERE AT WARNER BROTHERS WARNER SAID IT WISHED MR. SOLOMON WELL IN HIS VENTURE A BELLSOUTH CORPORATION SUBSIDIARY SAID IT SOLD ITS INTEREST IN THE MEXICAN CELLULAR COMPANY COMMUNICACIONES CELULARES DE OCCIDENTE S. A. TO GRUPO IUSACELL S. A. ALTHOUGH DETAILS OF THE TRANSACTION WEREN'T DISCLOSED BELLSOUTH SAID IT EXPECTS THE SALE TO BOOST ITS EARNINGS COMCEL BEGAN PROVIDING CELLULAR TELEPHONE SERVICE THROUGHOUT WESTERN MEXICO INCLUDING THE CITY OF GUADALAJARA IN AUGUST NINETEEN NINETY CHARLES B. COE PRESIDENT OF BELLSOUTH INTERNATIONAL SAID QUOTE WE CONTINUE TO LOOK FOR OTHER OPPORTUNITIES IN LATIN AMERICA INCLUDING MEXICO QUOTE EASTMAN KODAK COMPANY SAID IT WOULD RESUME BUSINESS ACTIVITY IN SOUTH AFRICA AFTER AN ABSENCE OF ABOUT SIX YEARS THE ROCHESTER N. Y. PHOTOGRAPHY COMPANY SAID IT EXPECTS TO EMPLOY FIFTEEN TO TWENTY PEOPLE IN SOUTH AFRICA BY MIDYEAR AND WILL CONCENTRATE ON MARKETING ITS CONSUMER AND PROFESSIONAL PRODUCTS INCLUDING THOSE IN ITS PHOTOGRAPHY COPIER MOTION PICTURE AND HEALTH DIVISIONS A KODAK SPOKESMAN SAID THE OPERATIONS WOULD MOST LIKELY BE BASED IN JOHANNESBURG BEFORE KODAK LEFT SOUTH AFRICA IN NINETEEN EIGHTY SEVEN ITS SALES THERE TOTALED LESS THAN ONE HUNDRED MILLION DOLLARS LESS THAN ONE PERCENT OF ITS WORLD WIDE SALES RYLAND GROUP INCORPORATED SAID PRIORITIES IN NINETEEN NINETY FOUR INCLUDE IMPROVING ITS HOME BUILDING OPERATIONS AN ARTICLE FRIDAY OMITTED THIS GOAL IN CITING THE COMPANY'S FOCUS ON QUOTE OPTIMIZING THE STRENGTH OF ITS MORTGAGE OPERATIONS AND MAXIMIZING SHAREHOLDER VALUE QUOTE PROGRAM TRADING STATISTICS THAT RAN IN FRIDAY'S EDITION WERE FOR THE WEEK ENDED JANUARY TWENTY EIGHTH THE TABLE WAS LABELED INCORRECTLY FOR THE WEEK ENDED FEBRUARY THIRD ALCO STANDARD CORPORATION'S UNISOURCE UNIT ACQUIRED ONLY THE HAWAIIAN PRINTING PAPER DISTRIBUTION BUSINESS OF BOISE CASCADE CORPORATION'S HOPACO BUSINESS AN ITEM IN LAST MONDAY'S BUSINESS BRIEFS SECTION INCORRECTLY SAID UNISOURCE ACQUIRED THE ENTIRE HOPACO BUSINESS ROGERS COMMUNICATIONS INCORPORATED HASN'T ATTACHED A VALUE TO ITS PLANNED OFFER FOR MOST OF MACLEAN HUNTER LIMITED AN ARTICLE THURSDAY SAID THE COMPANY VALUED THE OFFER AT TWO POINT SEVEN BILLION CANADIAN DOLLARS TWO POINT OH THREE BILLION U. S. DOLLARS THE FIGURE REPRESENTED THE INDICATED VALUE OF SUCH AN OFFER USING STOCK PRICES AT THAT TIME AMERICAN INTERNATIONAL GROUP INCORPORATED SAID ITS AMERICAN LIFE INSURANCE COMPANY UNIT FORMED A COMPANY TO MARKET DOLLAR DENOMINATED LIFE INSURANCE PRODUCTS IN ARGENTINA THE NEW COMPANY ALICO COMPANIA DE SEGUROS DE VIDA S. A. WILL BE BASED IN BUENOS AIRES AND WILL TARGET THE MIDDLE INCOME MARKET SELLING PRIMARILY THROUGH A NETWORK OF AGENTS RECENT CHANGES IN ARGENTINA PERMIT FULL FOREIGN OWNERSHIP OF LICENSED INSURANCE COMPANIES AND REMOVE CERTAIN LIMITATIONS ON FOREIGN CURRENCY TRANSACTIONS AND INVESTMENTS ACCORDING TO A. I. G. A NEW YORK BASED INSURANCE CONCERN AFTER MEDIATION ATTEMPTS SUDDENLY BROKE DOWN LAST NIGHT THE TEAMSTERS UNION HAS ADVISED ITS WORKERS TO DEFY A COURT ORDER AND STRIKE UNITED PARCEL SERVICE OF AMERICA INCORPORATED STARTING TODAY A STRIKE BY THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS COULD CRIPPLE THE ATLANTA BASED PACKAGE CARRIER AND DISRUPT BUSINESSES THROUGHOUT THE COUNTRY FROM CATALOG RETAILERS TO AUTO MANUFACTURERS BUT IT IS UNCLEAR HOW MANY UNION LOCALS WILL HONOR THE STRIKE AGAINST U. P. S. WHICH HANDLES ELEVEN MILLION PACKAGES A DAY AND IS THE WORLD'S LARGEST PACKAGE CARRIER THE COMPANY SAID THAT BASED ON A SURVEY OF UNION LOCALS IT QUOTE FULLY EXPECTS EMPLOYEES QUOTE TO REPORT TO WORK TODAY THE CALL FOR A STRIKE WHICH SHOCKED MANY LOCALS AND U. P. S. CAME AFTER A WEEKEND OF TALKS AND LEGAL ACTIONS THAT THE COMPANY AND UNION SAID WOULD AVERT A WALKOUT AT ISSUE IS U. P. S.'S PACKAGE WEIGHT LIMIT SCHEDULED TO JUMP TO ONE HUNDRED FIFTY POUNDS FROM SEVENTY POUNDS TODAY WHICH THE UNION SAID WOULD CAUSE SERIOUS WORKER INJURIES UNION LEADERS SAID THAT DURING THE MEDIATED TALKS U. P. S. REFUSED TO NEGOTIATE THE NEW LIMIT U. P. S. SAID IT CONTINUES TO WORK THROUGH A FEDERAL MEDIATOR TO RESOLVE THE SITUATION WE CANNOT UNDERSTAND WHY THEY WOULD STRIKE OVER A SERVICE THAT IS SAFE AND WOULD MEAN MORE JOBS AND JOB SECURITY SAID A U. P. S. SPOKESMAN IN AN ELECTRONIC MESSAGE SENT TO UNION LOCALS LAST NIGHT RON CAREY THE TEAMSTERS GENERAL PRESIDENT SAID THE NEW WEIGHT LIMIT IS INHUMANE AND U. P. S. HAS NO LEGAL RIGHT TO IMPOSE IT THE STRIKE COULD BE RISKY FOR THE UNION AND THE EMBATTLED MR. CAREY WHO IS TRYING TO CONSOLIDATE POWER AFTER A HARD FOUGHT ELECTION IN NINETEEN NINETY MOREOVER ON FRIDAY NIGHT U. P. S. WON A FIVE DAY TEMPORARY RESTRAINING ORDER FROM A FEDERAL JUDGE IN WASHINGTON D. C. BARRING A STRIKE A HEARING FOR A PERMANENT INJUNCTION WAS TO BE SCHEDULED FOR EARLY THIS WEEK UNLIKE COMPETITOR FEDERAL EXPRESS CORPORATION WHICH HAS HAD A ONE HUNDRED FIFTY POUND WEIGHT LIMIT FOR TEN YEARS U. P. S. DOESN'T INTEND TO PROVIDE BACK BRACES OR REQUIRE THAT TWO OR MORE WORKERS CARRY PACKAGES OVER SEVENTY FIVE POUNDS U. P. S. SAYS CARRIERS WILL HAVE TO CALL DISPATCH FOR HELP IF THEY NEED IT AND ADDS THAT IT HAS INVESTED MILLIONS OF DOLLARS IN NEW ROLLERS CARTS AND TRAINING VIDEOS TO ENSURE WORKER SAFETY U. P. S. ALSO ARGUES THAT THE ONE HUNDRED FIFTY POUND WEIGHT IS STANDARD IN THE INDUSTRY AND NECESSARY TO REMAIN COMPETITIVE MOREOVER U. P. S. SAID PACKAGES OVER THE OLD SEVENTY POUND LIMIT WILL MAKE UP LESS THAN ONE PERCENT OF TOTAL VOLUME A STRIKE COULD BE COSTLY FOR THE TEAMSTERS THE UNION'S STRIKE FUND IS DOWN TO EIGHTEEN MILLION DOLLARS ENOUGH TO SUSTAIN THE ONE HUNDRED SIXTY FIVE THOUSAND TEAMSTERS WORKERS AT U. P. S. FOR ABOUT THREE DAYS MOREOVER U. P. S. HAS SAID IT WOULD HOLD THE LOCALS LIABLE FOR COSTS WHICH COULD RUN TENS OF MILLIONS OF DOLLARS A DAY UNION MEMBERS DIDN'T VOTE ON THE STRIKE AND IT WAS UNCLEAR LAST NIGHT HOW MANY LOCALS WOULD FOLLOW MR. CAREY'S DIRECTIVE BUT SEVERAL LOCALS IN THE MIDWEST SAID THEY WOULD DEFY MR. CAREY'S CALL FOR A STRIKE BECAUSE OF THE LIABILITY CANADIAN IMPERIAL BANK OF COMMERCE SAID IT WILL RECORD A SPECIAL GAIN OF ABOUT NINETEEN MILLION CANADIAN DOLLARS U.S.FOURTEEN POINT MILLION DOLLARS FROM THE SALE OF A PORTFOLIO OF RESIDENTIAL MORTGAGES IN BRITAIN TO ABBEY NATIONAL P. L. C. CANADIAN IMPERIAL SAID THE PORTFOLIO HAS A FACE VALUE OF NINE HUNDRED MILLION U.S.ONE POINT BILLION DOLLARS OF MORTGAGES ABOUT TEN PERCENT OF WHICH ARE NONPERFORMING THE TORONTO BANK SAID THE SALE FITS WITH ITS STRATEGY OF CONCENTRATING ON ITS NORTH AMERICAN OPERATIONS CANADIAN IMPERIAL SAID IT HAS ANOTHER BRITISH MORTGAGE PORTFOLIO WITH A FACE VALUE OF TWO HUNDRED FORTY ONE MILLION POUNDS THAT IT PLANS TO SELL OVER THE NEXT FEW MONTHS ABBEY NATIONAL A BRITISH BUILDING SOCIETY WHICH IS SIMILAR TO A SAVINGS AND LOAN SAID IN A STATEMENT THAT THE PURCHASE IS PART OF ITS STRATEGY TO INCREASE ITS SHARE OF THE U. K. RESIDENTIAL MORTGAGE MARKET STARTING OUT IN BUSINESS IS NEVER EASY BUT THE IMPRESSION THAT IT'S NOTHING BUT A DOG EAT DOG WORLD OUT THERE FOR THOSE ON THEIR OWN IS GREATLY EXAGGERATED WHEN I STARTED OUT IN MY OWN BUSINESS I FOUND TO MY SURPRISE BUSINESS PEOPLE FRIENDS AND RELATIVES GOING OUT OF THEIR WAY TO HELP AT FIRST I THOUGHT THAT I WAS GETTING THE PERMANENT COLD SHOULDER FROM MOST OF OUR PROSPECTIVE CUSTOMERS COMPANY PRESIDENTS AND PURCHASING AGENTS I HAD CALLED ON BEFORE I WAS ON MY OWN AFTER A YEAR I WAS AMAZED TO FIND THAT THEY EVENTUALLY CAME THROUGH THEY HAD MERELY BEEN WAITING FOR PROOF OF OUR STAYING POWER BUT WHY DID THEY BOTHER AT ALL OUR PRODUCTS AND SERVICE WERE NO BETTER THAN OUR BEST COMPETITORS' PERHAPS THEY FELT THAT ANOTHER SUPPLIER ON THE SCENE WOULD BENEFIT THEM BUT KNOWING THE INDIVIDUALS AND SEEING THEIR DELIGHT IN GIVING US ORDERS I BELIEVED THAT THEY WERE MOTIVATED AT LEAST IN PART BY THEIR INHERENT GENEROSITY I ENCOUNTERED OTHER SUCH ACTS DURING THOSE EARLY YEARS NEEDING A GOOD CERTIFIED PUBLIC ACCOUNTANT I CONSULTED ONE WHO WAS HIGHLY RECOMMENDED BUT EXPENSIVE ON EXAMINING MY DISMAL FINANCIALS HE POINTED OUT THAT I COULDN'T AFFORD HIM THEN AFTER A PAUSE HE ADDED THAT HE WOULD DO THE WORK GRATIS UNTIL THE COMPANY MOVED INTO THE BLACK I WAS ASTONISHED DON'T BE HE SAID AS THE COMPANY PROGRESSED THROUGH THE YEARS HE WOULD EXPECT IT TO MAKE IT UP TO HIM HIS FIRM SERVED MY COMPANY FOR THE NEXT TWENTY YEARS UNTIL I SOLD IT HIS GESTURE IS AS INDELIBLE IN MY MIND AS IF IT HAD JUST HAPPENED ALSO DURING THOSE YEARS WHEN A RECESSION STRUCK AND MY COMPANY FELL INTO SUCH FINANCIAL STRAITS THAT I HAD EXHAUSTED ALL BANK CREDIT I CALLED MY WIFE'S WEALTHY UNCLE FOR HELP HIS FIRST AND ONLY QUESTION HOW MUCH DO YOU NEED WHEN I ASKED FOR FIFTY THOUSAND DOLLARS EQUIVALENT TO ABOUT FIVE HUNDRED THOUSAND DOLLARS TODAY HE NEVER FLINCHED LATER WHEN THE COMPANY STILL HAD A NEGATIVE NET WORTH AND MY TWO PARTNERS WERE SEEKING TO SELL THEIR SHARES HE OFFERED TO BUY THEM OUT ALTHOUGH I KNEW HE WOULD MAKE AN IDEAL SILENT PARTNER I WAS UNSURE OF THE FUTURE AND FEARED HIS RISK WOULD BE TOO HIGH I WOULDN'T ALLOW IT UNWITTINGLY I DID HIM A DISSERVICE THE COMPANY GREW TO BE WORTH SEVERAL MILLION DOLLARS BUT BOTH HE AND I WERE MOTIVATED BY SOMETHING MORE THAN PERSONAL GAIN RESPECT AND CONCERN FOR EACH OTHER MY EXPERIENCE IN BUSINESS SIMPLY DOESN'T SQUARE WITH NOVELS AND MOVIES IN WHICH BUSINESS PEOPLE ARE PORTRAYED AS HEARTLESS SELF CENTERED AND EXPLOITERS OF OTHERS ONE CUSTOMER WHOM I CALLED ON FOR FIVE YEARS TO NO AVAIL FINALLY SOUGHT OUR HELP WHEN OUR COMPETITOR FAILED HIM IN AN EMERGENCY WE PERFORMED AND BECAME HIS SOLE SUPPLIER FOR MORE THAN A DECADE HE COULD HAVE SHOPPED AROUND AND TRIED TO DRIVE OUR PRICES DOWN IN FACT THERE WAS NO NEED WE CHARGED HIM NO MORE THAN WE CHARGED HIS COMPETITORS WHO DROVE US TO THE WALL WE WERE AS LOYAL TO HIS COMPANY AS HE WAS TO OURS SOME YEARS LATER WE WERE FACED WITH HAVING TO PAY OFF THE MATURING PRINCIPAL OF A LARGE LOAN IF THE COMPANY FAILED TO MEET THE PAYMENT IT WOULD SPELL DISASTER FOR ME PERSONALLY OUR CASH FLOW WAS INSUFFICIENT AND OUR LINE OF CREDIT FULLY EXTENDED EXPECTING THE WORST I VISITED THE VICE PRESIDENT OF THE BANK AND DESCRIBED OUR PROBLEM INSTEAD OF PANICKING AND TAKING HARSH STEPS TO PROTECT THE BANK'S CLAIM THE VICE PRESIDENT CALMLY EXAMINED POSSIBLE WAYS TO RAISE ADDITIONAL FUNDS HE FOUND THEM IN OUR REAL ESTATE WHICH HAD APPRECIATED CONSIDERABLY OVER THE YEARS BY MORTGAGING IT WE WERE ABLE TO PAY OFF THE LOAN AND CONVERT OUR SHORT TERM DEBT INTO LONG TERM DEBT THE BANK HAD GIVEN US A NEW LEASE ON LIFE I'VE HAD A FRIENDLY FEELING TOWARD BANKS EVER SINCE CERTAINLY NOT ALL MY EXPERIENCES IN BUSINESS WERE UPLIFTING WE HAD OUR SHARE OF DEADBEAT CUSTOMERS SOME OF WHICH TOOK US ROYALLY BUT THEY DID IT ONLY ONCE AS A RESULT WE ADOPTED A TOUGH CREDIT POLICY WE LEARNED TO AVOID CUSTOMERS THAT WERE UNREASONABLE IN THEIR DEMANDS OR UNWILLING TO LET US BENEFIT FROM THE RELATIONSHIP MOST OF OUR PRODUCTS WERE CUSTOMMADE CUSTOMERS CALLED IN THEIR ORDERS OVER THE PHONE THE ORDERS RANGING IN VALUE FROM A FEW HUNDRED TO TENS OF THOUSANDS OF DOLLARS GENERALLY REQUIRED DELIVERY OF GOODS WITHIN ONE OR TWO DAYS IT MEANT THAT WE WOULD USUALLY BEGIN PRODUCING BEFORE RECEIVING A CONFIRMING PURCHASE ORDER THIS WAS BEFORE FAXES THE CUSTOMER'S WORD ALONE WAS ENOUGH IN MY TWENTY YEAR STINT AS C. E. O. NOT ONCE DID A CUSTOMER GO BACK ON IT UNUSUAL NOT AT ALL WITHOUT SUCH TRUST BUSINESS COULDN'T BE CONDUCTED SIMILAR TRANSACTIONS HAPPEN MILLIONS OF TIMES EVERY DAY DOG EAT DOG ONLY TO THAT MINORITY THE SELF SEEKING AND RUTHLESS IN EACH DESPERATE INSTANCE AS WE WERE STARTING OUT WE LEARNED THAT THERE ARE TWO WAYS TO GO AN EYE FOR AN EYE OR DO UNTO OTHERS WHAT YOU WOULD HAVE THEM DO UNTO YOU IN BUSINESS THE LATTER PHILOSOPHY IS FAR MORE COMMON SIMPLY BECAUSE IT MAKES THINGS WORK BETTER MR. AARON WRITES FROM BELFAST MAINE YOUR JANUARY SEVENTH MARKETPLACE ARTICLE CONCERNING VALUJET AIRLINES IN GEORGIA STATED THAT THE FITZGERALD AIRPORT FACILITIES CONSISTED OF QUOTE A SHORT TURF RUNWAY MORE SUITABLE TO TINY PROPJETS AND CROPDUSTERS QUOTE WHILE FITZGERALD MUNICIPAL IS CERTAINLY NO HARTFIELD OR LAGUARDIA IT IS ONE OF THE MOST UP TO DATE GENERAL AVIATION AIRPORTS IN THE STATE WITH AN F. A. A. APPROVED ONE MILE PAVED AND LIGHTED RUNWAY USED BY CORPORATE JETS OF MANY OF OUR FORTY INDUSTRIES AND THREE HUNDRED BUSINESSES WHILE WE ARE NOT SEEKING VALUJET'S SERVICE IT CERTAINLY WOULD NOT BE AN OUTRAGEOUS SUGGESTION AS YOU SEEM TO SUGGEST REPRESENTATIVE JIM COOPER WHOSE HEALTH CARE PLAN WAS EMBRACED LAST WEEK BY THE BUSINESS ROUNDTABLE RECEIVED THIRTY FIVE PERCENT OF HIS IDENTIFIABLE CAMPAIGN CONTRIBUTIONS FROM THE HEALTH CARE INDUSTRY IN THE SECOND HALF OF NINETEEN NINETY THREE ACCORDING TO AN ANALYSIS BY CITIZEN ACTION CITIZEN ACTION A CONSUMER GROUP THAT OPPOSES THE COOPER PLAN AND IS PUSHING FOR A CANADIAN STYLE QUOTE SINGLE PAYER QUOTE HEALTH SYSTEM FOUND THAT OF THE FIVE HUNDRED FIFTY FOUR THOUSAND DOLLARS REPRESENTATIVE COOPER RAISED FROM LARGE INDIVIDUAL DONORS DURING THE LAST SIX MONTHS OF THE YEAR ONE HUNDRED NINETY SIX THOUSAND SIX HUNDRED DOLLARS CAME FROM PEOPLE ASSOCIATED WITH THE HEALTH AND INSURANCE INDUSTRIES FOR ALL OF NINETEEN NINETY THREE THE GROUP FOUND TWENTY SEVEN PERCENT OF THE ONE POINT THREE MILLION DOLLARS REPRESENTATIVE COOPER RAISED FROM LARGE DONORS WAS CONTRIBUTED BY PEOPLE IN THOSE INDUSTRIES CAMPAIGN RECORDS ARE REQUIRED TO IDENTIFY ONLY THOSE PEOPLE WHO GIVE MORE THAN TWO HUNDRED DOLLARS TO A CANDIDATE REPRESENTATIVE COOPER A TENNESSEE DEMOCRAT WHO IS RUNNING FOR THE SENATE THIS YEAR DOESN'T TAKE MONEY FROM POLITICAL ACTION COMMITTEES REPRESENTATIVE COOPER HAS TAKEN A HOLIER THAN THOU POSITION WITH REGARD TO CAMPAIGN FINANCING ASSERTED CITIZEN ACTION'S MICHAEL PODHORZER YET WITHOUT TAKING A PENNY FROM PACS COOPER HAS MANAGED TO RAISE MORE MONEY FROM HEALTH AND INSURANCE INTERESTS THAN ANY OTHER MEMBER OF THE HOUSE NONETHELESS VIRTUALLY EVERY LAWMAKER WITH A PROMINENT ROLE IN THE HEALTH CARE DEBATE IS BEING SHOWERED WITH MONEY THESE DAYS FOR EXAMPLE REPRESENTATIVE FORTNEY STARK D. CALIFORNIA THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE CHAIRMAN WHO IS SYMPATHETIC TO SINGLE PAYER ADVOCATES RECEIVED MOST OF HIS LARGE DONOR CONTRIBUTIONS IN THE SECOND HALF OF NINETEEN NINETY THREE FROM DOCTORS AND OTHERS ASSOCIATED WITH THE HEALTH INDUSTRY ACCORDING TO FEDERAL ELECTION COMMISSION RECORDS IN ADDITION HEALTH PACS GAVE HIM TENS OF THOUSANDS OF DOLLARS IN CONTRIBUTIONS LAST YEAR MEANWHILE NEARLY A THIRD OF THE PAC MONEY SENT TO SENATOR JOHN CHAFEE THE RHODE ISLAND REPUBLICAN WHO HAS PUT OUT ANOTHER HEALTH CARE PLAN CAME FROM THE MEDICAL AND INSURANCE INDUSTRIES DURING THE LATTER HALF OF LAST YEAR F. E. C. RECORDS SHOW REPRESENTATIVE COOPER CRITICIZED CITIZEN ACTION FOR ATTACKING ME PERSONALLY RATHER THAN DEBATING ME ON THE MERITS OF THE BILL THE CONGRESSMAN NOTED THAT HE HAS BEEN RUNNING FOR THE SENATE FOR AN ENTIRE YEAR AND HAS RAISED LARGE SUMS FROM PEOPLE IN A VARIETY OF BUSINESSES HE SAID HE WAS CAMPAIGNING WITH ONE HAND TIED BEHIND MY BACK BY NOT ACCEPTING PAC MONEY I'VE PROBABLY TURNED DOWN TWO MILLION DOLLARS OF EASY HEALTH CARE MONEY THAT VIRTUALLY ANY OF MY COLLEAGUES IS WILLING TO ACCEPT UPON FILING HIS CAMPAIGN FINANCE REPORT LAST MONTH REPRESENTATIVE COOPER ALSO SAID THAT THREE QUARTERS OF HIS RECEIPTS HAVE COME FROM INDIVIDUALS IN HIS HOME STATE QUOTE RAISING MONEY PRIMARILY FROM TENNESSEANS RATHER THAN PROFESSIONAL SPECIAL INTEREST GROUPS IS A BETTER WAY TO FINANCE A CAMPAIGN QUOTE THE CONGRESSMAN SAID BUT CITIZEN ACTION SAID THAT TWENTY ONE PEOPLE ASSOCIATED WITH PACIFICARE HEALTH SYSTEMS INCORPORATED A CYPRESS CALIFORNIA HEALTH MAINTENANCE ORGANIZATION GAVE THIRTEEN THOUSAND FIVE HUNDRED DOLLARS TO REPRESENTATIVE COOPER CONTRIBUTORS CONNECTED WITH FIVE OTHER COMPANIES INCLUDING NASHVILLE HOSPITAL CHAINS HEALTHTRUST INCORPORATED AND H. C. A. HOSPITAL CORPORATION OF AMERICA ALSO SENT REPRESENTATIVE COOPER AT LEAST TEN THOUSAND DOLLARS DURING NINETEEN NINETY THREE REPRESENTATIVE COOPER'S HEALTH CARE PROPOSAL WHICH ENJOYS STRONG BIPARTISAN SUPPORT HAS GAINED CONSIDERABLE ATTENTION OF LATE THE BUSINESS ROUNDTABLE A GROUP OF CHIEF EXECUTIVES OF AMERICA'S LARGEST CORPORATIONS VOTED LAST WEEK TO BACK A BILL AUTHORED BY REPRESENTATIVE COOPER AND SENATOR JOHN BREAUX D. LOUISIANA AS A GOOD STARTING POINT FOR HEALTH CARE REFORM INFORMATION RESOURCES INCORPORATED WHICH STUNNED INVESTORS BY ANNOUNCING THAT IT WILL REPORT FOURTH QUARTER EARNINGS HALF OF WHAT WAS ANTICIPATED HAS LOST A MAJOR ACCOUNT BRISTOL MYERS SQUIBB COMPANY A CLIENT OF THE CHICAGO BASED MARKETING RESEARCH COMPANY SINCE NINETEEN NINETY ONE IS EXPECTED TO MOVE ITS BUSINESS BACK TO THE A. C. NIELSEN UNIT OF DUN AND BRADSTREET CORPORATION AN ANNOUNCEMENT OF THE SWITCH AS WELL AS POSSIBLY ANOTHER ACCOUNT DEFECTION TO I. R. I.'S ARCHRIVAL COULD COME WITHIN DAYS ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION I. R. I. LAST LOST A MAJOR CLIENT THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COMPANIES IN NINETEEN NINETY TWO AFTER I. R. I. SAID ON FRIDAY THAT EARNINGS WOULD BE LOWER THAN EXPECTED ITS SHARES FELL EIGHT POINT EIGHT SEVEN FIVE DOLLARS OR TWENTY FOUR PERCENT TO TWENTY EIGHT DOLLARS AND SEVENTY FIVE CENTS IN NASDAQ STOCK MARKET TRADING THE COMPANY SAID IT WOULD REPORT PER SHARE FOURTH QUARTER PROFIT OF BETWEEN FIFTEEN CENTS AND SEVENTEEN CENTS RATHER THAN THE THIRTY TWO CENTS TO THIRTY FOUR CENTS WALL STREET HAD PREDICTED FOR THE FULL YEAR I. R. I. SAID IT NOW EXPECTS TO REPORT PER SHARE EARNINGS OF BETWEEN EIGHTY EIGHT CENTS AND NINETY CENTS AGAINST A CONSENSUS FORECAST OF ONE DOLLAR AND SIX CENTS AND YEAR EARLIER EARNINGS OF SEVENTY EIGHT CENTS THE SHORTFALL TRANSLATES TO ABOUT FOUR POINT TWO MILLION DOLLARS IN NET INCOME I. R. I. ATTRIBUTED ABOUT TWO CENTS OF THE UNREALIZED EARNINGS TO EXTRAORDINARY COSTS ASSOCIATED WITH ACQUISITIONS I. R. I. BLAMED MOST OF THE SHORTFALL ON NEW CLIENT BUSINESS THAT HADN'T DEVELOPED LARGELY IT SAID BECAUSE OF QUOTE SWAT TEAM QUOTE SALESMANSHIP BY AN EXECUTIVE WHO HAD TEMPORARILY LEFT I. R. I. FOR NIELSEN DURING HIS FOUR MONTHS AS PRESIDENT OF NIELSEN'S NORTH AMERICAN OPERATIONS GEORGE R. GARRICK IS CREDITED WITH CONVINCING SEVERAL MAJOR CLIENTS TO REMAIN THERE WITH PROMISES THAT SERVICE WOULD IMPROVE HE DIDN'T HAVE TO DO THAT AT TOO MANY PLACES FOR IT TO REALLY HURT OUR REVENUE NUMBERS FOR THE QUARTER I. R. I. CHAIRMAN GIAN M. FULGONI SAID LAST NOVEMBER MR. FULGONI SUCCEEDED IN WOOING MR. GARRICK BACK TO I. R. I. WHERE HE HEADS UP ITS NORTH AMERICAN BUSINESS MR. FULGONI SAID THAT WALL STREET EXPECTS I. R. I.'S INFOSCAN SCANNER DATA OPERATION TO GROW BY AT LEAST TWENTY PERCENT A YEAR AND THAT NEW INFOSCAN CLIENTS REPRESENT HIGH MARGIN BUSINESS A COUPLE OF JOBS COULD TOTAL TWO MILLION DOLLARS IN PRETAX EARNINGS EASILY HE ADDED HE WOULDN'T IDENTIFY CLIENTS I. R. I. HAD BEEN COUNTING ON OTHER THAN TO CHARACTERIZE THEM AS BLUE CHIP BUT DURING THE QUARTER SEVERAL CLIENTS RENEWED WITH I. R. I. MR. FULGONI SAID AMONG THEM HERSHEY FOODS CORPORATION BAYER A. G.'S MILES LABORATORIES LAND O'LAKES INCORPORATED J. M. SMUCKER COMPANY AND THE CONTINENTAL BAKING GROUP OF RALSTON PURINA COMPANY HE ALSO SAID THAT SINCE MR. GARRICK HAS RETURNED I. R. I. HAS ADDED FORMER NIELSEN CLIENT DOLE FOOD COMPANY IN AN APPARENT EFFORT TO CUSHION THE BLOW I. R. I. BUNDLED THE EARNINGS REVISION WITH ANNOUNCEMENTS OF ACQUISITIONS INCLUDING THAT OF SURVEY RESEARCH GROUP A HONG KONG BASED CONCERN FOR SEVENTY SIX MILLION DOLLARS IN STOCK SRG WILL GIVE I. R. I. ENTRY INTO ASIA AS PART OF ITS EFFORTS TO MATCH NIELSEN IN GLOBAL REACH INCREASINGLY COMPANIES WANT TO TRACK CONSUMER BUYING HABITS WORLD WIDE SRG OPERATES IN CHINA HONG KONG INDONESIA MALAYSIA THE PHILIPPINES SINGAPORE TAIWAN AND THAILAND I. R. I. WHICH OUTBID NIELSEN FOR SRG SAID THE ACQUISITION WOULD BE ANTIDILUTIVE TO ITS SHARES I. R. I. ALSO SAID IT HAD SIGNED A LETTER OF INTENT TO BUY NEO INCORPORATED A SHELTON CONNECTICUT MANAGEMENT CONSULTING FIRM SPECIALIZING IN CONSUMER PACKAGED GOODS TERMS WEREN'T DISCLOSED MR. FULGONI WHO INCURRED A ONE DAY PAPER LOSS FRIDAY OF ABOUT TWO POINT SIX MILLION DOLLARS ON HIS PERSONAL HOLDINGS SOUGHT TO MINIMIZE THE STOCK'S PLUNGE CALLING INVESTORS SHORT SIGHTED A FIVE PERCENT REVENUE SHORTFALL HERE CAUSED A FIFTY PERCENT EARNINGS SHORTFALL THE CHAIRMAN AND CO CHIEF EXECUTIVE OFFICER SAID THE COMPANY CAUTIONED WALL STREET QUOTE NOT TO READ TOO MUCH QUOTE INTO QUARTER TO QUARTER EARNINGS HE SAID ADDING QUOTE THE VOLATILITY OF OUR EARNINGS SHOULDN'T BE USED TO INDICATE THE FUNDAMENTAL STRENGTH OF THE COMPANY QUOTE INDEED SOME ANALYSTS REGARD I. R. I.'S STOCK DECLINE AS A BUYING OPPORTUNITY I RECOMMEND PURCHASE AT THESE LEVELS BECAUSE I THINK THE FUNDAMENTALS OF THE BUSINESS ARE ACTUALLY BETTER IN LIGHT OF THE SRG ACQUISITION SAID RITA SPITZ OF WILLIAM BLAIR AND COMPANY CHICAGO MS. SPITZ SAID SHE ISN'T CHANGING HER NINETEEN NINETY FOUR EARNINGS ESTIMATE OF ONE DOLLAR AND FORTY CENTS A SHARE WITH A RANGE OF ONE DOLLAR AND THIRTY FIVE CENTS TO ONE DOLLAR AND FORTY FIVE CENTS QUICK AND REILLY INCORPORATED THE QUIET MEMBER OF THE DISCOUNT BROKERAGE INDUSTRY'S BIG THREE WANTS TO MAKE SOME NOISE AND FIGURES CALIFORNIA THE BACK YARD OF MARKET LEADER CHARLES SCHWAB AND COMPANY IS THE PLACE TO DO IT QUICK AND REILLY LAST MONTH HIRED AWAY ONE OF SCHWAB'S TOP EXECUTIVES MARK BRANDIN FORTY THREE YEARS OLD TO DIRECT AN INTENSIFIED MARKETING CAMPAIGN MR. BRANDIN AT ONE TIME SCHWAB'S CHIEF MARKETING EXECUTIVE IS ALREADY MAKING PLANS TO BOOST QUICK AND REILLY'S PROFILE WITH A STEPPED UP TELEVISION ADVERTISING CAMPAIGN AND LARGER ADS IN PRINT MOST RECENTLY HE WAS EXECUTIVE VICE PRESIDENT CAPITAL MARKETS SLASH TRADING AT SAN FRANCISCO BASED SCHWAB MR. BRANDIN'S SPECIFIC PLANS INCLUDE EMPHASIZING THE COMPANY'S SATISFACTION GUARANTEE DISMISSED BY CRITICS AS A GIMMICK WHEN IT WAS UNVEILED IN MARCH NINETEEN NINETY TWO THE GUARANTEE ALLOWS QUICK AND REILLY CUSTOMERS TO GET THEIR COMMISSION FEES BACK IF THEY ARE UNHAPPY WITH SERVICES RECEIVED ON A TRADE THE GUARANTEE DOESN'T APPLY TO DECLINES IN STOCK PRICES THE COMPANY SAYS ZERO POINT ZERO ONE PERCENT OF TRADES HAVE LED TO A REFUND REQUEST QUICK AND REILLY'S NEW AGGRESSIVE TACK UNDERSCORES THE CHANGING COMPETITION FOR CUSTOMERS AMONG DISCOUNT BROKERS WHILE THE RETAIL INVESTING BOOM CONTINUES TO SURGE BECAUSE OF THE LOW INTEREST RATE ENVIRONMENT THE DISCOUNT BROKERAGE MARKETPLACE IS TIGHTENING THE BIG THREE INCLUDING FIDELITY INVESTMENTS' DISCOUNT BROKERAGE BUSINESS CONTROL MORE THAN NINETY PERCENT OF THE DISCOUNT MARKET LEAVING LITTLE ROOM FOR MARKET SHARE GROWTH THAT ISN'T AT THE EXPENSE OF THE OTHER TWO QUICK'S NEW APPROACH IS QUOTE A NOT SO SUBTLE SHIFT IN STRATEGY QUOTE SAYS MICHAEL FLANAGAN AN ANALYST WITH LIPPER ANALYTICAL SERVICES NOT ONLY GOING AFTER SCHWAB'S NICHE MORE AGGRESSIVELY BUT ALSO GEOGRAPHICALLY GOING AFTER SCHWAB INTRIGUES ME HE SUGGESTS THAT IT COULD BE A RISKY UNDERTAKING THE FULL SERVICE DISCOUNT BUSINESS IN CALIFORNIA IS DOMINATED BY SCHWAB WHILE JACK WHITE AND COMPANY DOMINATES THE DEEP DISCOUNT BUSINESS QUICK AND REILLY WITH A MARKET CAPITALIZATION OF ABOUT THREE HUNDRED SIXTY FOUR MILLION DOLLARS MUST TAKE THE BATTLE TO A MUCH LARGER SCHWAB WHICH HAS A MARKET CAP OF ABOUT ONE POINT SIX SIX BILLION DOLLARS FRIDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING QUICK AND REILLY FELL ONE DOLLAR AND FIFTY CENTS TO THIRTY FOUR POINT ONE TWO FIVE DOLLARS TO BUILD A HIGHER PROFILE QUICK AND REILLY WILL INCREASE ITS MARKETING BUDGET FIFTY PERCENT TO AS MUCH AS EIGHT MILLION DOLLARS A YEAR ACCORDING TO INDIVIDUALS FAMILIAR WITH THE COMPANY'S PLANS IN ADDITION THE COMPANY WILL ADD MARKETING STAFF AND PUSH MORE PRODUCTS ATTEMPTING TO DIVERSIFY AWAY FROM ITS BREAD AND BUTTER TRANSACTION SERVICES MOREOVER QUICK AND REILLY WANTS TO PROMOTE RECENTLY INTRODUCED NO LOAD MUTUAL FUNDS AN AREA THAT HAS BEEN DOMINATED IN THE DISCOUNT BROKERAGE ARENA BY SCHWAB AND FIDELITY WE ARE REVERSING OUR TRADITIONAL LOW PROFILE STANCE SAYS TOM QUICK PRESIDENT OF THE COMPANY'S DISCOUNT BROKERAGE BUSINESS WE WANT TO EMPHASIZE WHAT WE CAN DO FOR OUR CUSTOMERS BEYOND STOCK TRANSACTIONS AND THAT INCLUDES MUTUAL FUNDS QUICK AND REILLY GROUP INCORPORATED THE PARENT COMPANY ALSO OPERATES SPECIALIST AND CLEARINGHOUSE BUSINESSES IN THE PAST FEW YEARS QUICK AND REILLY HAS RIDDEN THE RETAIL INVESTING BOOM TO STRONG EARNINGS AND REVENUE GROWTH THE COMPANY'S NET INCOME ROSE TO TWENTY EIGHT POINT SEVEN MILLION DOLLARS FOR THE YEAR ENDED LAST FEBRUARY FROM ABOUT TEN MILLION DOLLARS FOR THE YEAR ENDED IN FEBRUARY NINETEEN EIGHTY NINE OVER THAT PERIOD REVENUE ROSE TO ONE HUNDRED NINETY FIVE POINT NINE MILLION DOLLARS FROM SEVENTY SEVEN POINT SIX MILLION DOLLARS SCHWAB MEANWHILE HAS WATCHED NET INCOME GROW TO ONE HUNDRED EIGHTEEN MILLION DOLLARS IN NINETEEN NINETY THREE FROM NINETEEN MILLION DOLLARS IN NINETEEN EIGHTY NINE REVENUE HAS NEARLY TRIPLED TO NINE HUNDRED SIXTY FIVE MILLION DOLLARS IN NINETEEN NINETY TWO FROM THREE HUNDRED FORTY SIX MILLION DOLLARS IN NINETEEN EIGHTY NINE QUICK AND REILLY'S DECISION TO LAUNCH AN AGGRESSIVE MARKETING CAMPAIGN COMES AT A TIME WHEN SCHWAB SEEMS TO HAVE STUMBLED A BIT THE COMPANY'S STOCK HAS FALLEN FROM THIRTY ONE DOLLARS AND FIFTY CENTS ON JANUARY TWELFTH TO TWENTY SEVEN DOLLARS AND FIFTY CENTS SOME ANALYSTS EXPRESSED CONCERN THAT SCHWAB'S SPENDING PLANS HAVE EATEN TOO RAPIDLY INTO EARNINGS IN FACT EARNINGS BEFORE INCOME TAXES ACTUALLY DECLINED IN THE MOST RECENT QUARTER SCHWAB COUNTERS THAT TREMENDOUS GROWTH IN ASSETS UNDER MANAGEMENT FORCED THE COMPANY TO ACCELERATE CAPITAL SPENDING PROGRAMS IN NINETEEN NINETY THREE SCHWAB ADDED ALMOST THIRTY BILLION DOLLARS IN ASSETS UNDER MANAGEMENT TO GIVE THE FIRM ABOUT NINETY SEVEN BILLION DOLLARS IN ASSETS UNDER MANAGEMENT AT LEAST PART OF QUICK AND REILLY'S CAMPAIGN WILL BE FOUGHT OVER THE SIZE OF COMMISSIONS A BATTLEGROUND ON WHICH QUICK HOLDS AN ADVANTAGE ACCORDING TO A SURVEY BY MERCER INCORPORATED A FINANCIAL SERVICES RESEARCH AND CONSULTING CONCERN TO TRADE ONE THOUSAND SHARES OF A TEN DOLLAR STOCK SCHWAB CHARGES A COMMISSION OF ONE HUNDRED TEN DOLLARS FIDELITY ONE HUNDRED NINE DOLLARS AND FIFTY CENTS AND QUICK AND REILLY EIGHTY FOUR DOLLARS BUT QUICK FINDS ITSELF AT A DISADVANTAGE IN THE FIGHT TO OFFER INVESTORS MORE SERVICES BOTH SCHWAB AND FIDELITY OFFER A WIDER ARRAY OF SERVICES INCLUDING SUCH THINGS AS MORE EXTENSIVE RESEARCH AND ANALYSIS SCHWAB MADE A BIG HIT WITH ITS NO FEE MUTUAL FUND SERVICE A TACTIC THAT BOTH QUICK AND FIDELITY FOLLOWED THERE ALSO ARE TWO NEW BATTLEFIELDS LOOMING FOR ALL THREE FIRMS TECHNOLOGY AND INTERNATIONAL MARKETS ANALYSTS BELIEVE THAT TECHNOLOGY WILL PLAY AN INCREASINGLY IMPORTANT ROLE AMONG DISCOUNT BROKERAGE FIRMS AS THE INFORMATION SUPERHIGHWAY MAKES ACCESS TO INFORMATION EASIER FOR MORE PEOPLE WE HAVE MORE AND MORE CUSTOMERS SIGNING ONTO THEIR PERSONAL COMPUTERS AND PLACING TRADES THROUGH ON LINE SYSTEMS SAYS DONNA M. MORRIS SENIOR VICE PRESIDENT AT FIDELITY QUOTE AND AS CUSTOMERS BECOME MORE EDUCATED AND MORE ACCUSTOMED TO USING COMPUTERS WE EXPECT GROWING DEMAND FOR ON LINE PRODUCTS QUOTE CURRENTLY ALL THREE BROKERAGE FIRMS OFFER ON LINE TRADING AND SERVICES AND TWENTY FOUR HOUR TOUCH TONE ACCESS TO ACCOUNT AND STOCK INFORMATION INTERNATIONALLY GROWING INTEREST IN DISCOUNT BROKERAGE OPERATIONS HAS DRAWN SCHWAB AND FIDELITY TO LONDON QUICK AND REILLY HOWEVER HAS YET TO OPEN AN OFFICE OVERSEAS SCHWAB IS CURRENTLY DOMINANT BUT FIDELITY IS A MAJOR FACTOR SAYS MR. FLANAGAN QUICK AND REILLY IS ANOTHER PLAYER NOT YET WITH THE SAME SIZE OR PRESENCE I DO BELIEVE THEY ARE AN EFFICIENT LOW COST PROCESSOR OF TRADES BUT IN THIS MARKET SIZE IS VERY IMPORTANT IN CHALLENGING FOR SUPREMACY THE ANNOUNCEMENT BY THE FEDERAL RESERVE BOARD TIGHTENING ITS MONETARY POLICY SENT SMALL COMPANY STOCK BUYERS SCURRYING FOR COVER AS PRICES SLID SHARPLY THE RUSSELL TWO THOUSAND INDEX WHICH TRACKS THE PERFORMANCE OF SMALL CAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES FINISHED WITH A SHARP DEFICIT OF FIVE POINT NINE OH OR TWO POINT TWO ONE PERCENT TO TWO HUNDRED SIXTY ONE POINT SIX SEVEN ON NASDAQ THE COMPOSITE INDEX TUMBLED TWENTY POINT FIVE ONE OR TWO POINT FIVE SEVEN PERCENT TO SEVEN HUNDRED SEVENTY SEVEN POINT TWO EIGHT THE COMPOSITE'S LOSS WAS ITS SIXTH BIGGEST EVER ON A POINT BASIS OBSERVERS AGREED THAT THE FED'S MOVE WASN'T UNEXPECTED BUT DID COME SOONER THAN ANTICIPATED NASDAQ DECLINERS BATTERED ADVANCERS TWO THOUSAND FOUR HUNDRED FORTY THREE TO EIGHT HUNDRED SEVEN ON NASDAQ NATIONAL MARKET VOLUME OF THREE HUNDRED TWENTY ONE MILLION THREE HUNDRED THREE THOUSAND FOUR HUNDRED SHARES UP FROM TWO HUNDRED SEVENTY EIGHT MILLION THREE HUNDRED TWENTY SIX THOUSAND TWO HUNDRED THURSDAY NASDAQ TOTAL VOLUME WAS ITS FOURTH HIGHEST ONE DAY TURNOVER EVER AT THREE HUNDRED SEVENTY FIVE MILLION SEVENTY EIGHT THOUSAND EIGHT HUNDRED SHARES COMPARED WITH THREE HUNDRED THIRTY ONE MILLION SIX HUNDRED TWENTY THREE THOUSAND ONE HUNDRED THURSDAY MOST GROUPS WERE BADLY BRUISED AND INTEREST RATE SENSITIVE STOCKS WERE NO EXCEPTION PROVIDENT BANCORP CINCINNATI FELL ONE TO THIRTY MID ATLANTIC MEDICAL SERVICES A HEALTH MAINTENANCE ORGANIZATION DROPPED ONE AND ONE EIGHTH TO TWENTY SEVEN AND THREE QUARTERS AND CENTERBANK OF WATERBURY CONNECTICUT LOST SEVEN EIGHTHS TO ELEVEN AND ONE HALF PHOENIX LASER SYSTEMS PLUNGED ONE AND ONE HALF OR FORTY PERCENT TO TWO AND ONE QUARTER ON THE AMERICAN STOCK EXCHANGE THE COMPANY SAID AN INVOLUNTARY BANKRUPTCY PROCEEDING FILED AGAINST IT BY TWO FORMER EMPLOYEES AND MICRODYNE WON'T AFFECT A PRIVATE PLACEMENT AGREEMENT SIGNED RECENTLY WITH FUJIAN ENTERPRISES HOLDINGS MICRODYNE A DESIGNER OF SATELLITE EARTH STATION COMPONENTS ADDED ONE EIGHTH TO FIVE AND THREE EIGHTHS IN EARNINGS NEWS RALSTON CONTINENTAL BAKING GROUP DECLINED ONE AND THREE QUARTERS TO SEVEN AND THREE QUARTERS ON THE NEW YORK STOCK EXCHANGE AFTER REPORTING A FISCAL FIRST QUARTER LOSS OF ONE CENT A SHARE AFTER THE CLOSE THURSDAY IN THE YEAR EARLIER PERIOD THE COMPANY HAD PRO FORMA NET INCOME OF EIGHT CENTS IN ADDITION GOLDMAN SACHS AND COMPANY CUT ITS RATING ON RALSTON CONTINENTAL BAKING TO MARKET PERFORMER FROM MODERATE OUTPERFORMER CITING UNEXCITING FUNDAMENTALS SOUTHERN ELECTRONICS A DISTRIBUTOR OF PERSONAL COMPUTERS FELL ONE AND ONE QUARTER TO TEN AND THREE QUARTERS THE COMPANY SAID ITS FISCAL SECOND QUARTER EARNINGS FELL TO TWENTY TWO CENTS A SHARE FROM TWENTY NINE CENTS A YEAR EARLIER ON THE POSITIVE SIDE CORIMON JUMPED TWO AND SEVEN EIGHTHS TO TWENTY ONE AND FIVE EIGHTHS ON THE BIG BOARD INVESTORS ENTHUSIASTIC ABOUT THE TENOR OF ECONOMIC REFORM ANNOUNCED BY VENEZUELA'S NEW PRESIDENT SENT THE BUILDING MATERIALS COMPANY'S AMERICAN DEPOSITARY RECEIPTS HIGHER ON THE NEW ISSUES FRONT RENAISSANCE COMMUNICATIONS JUMPED TO TWENTY AND ONE QUARTER FROM ITS OFFERING PRICE OF NINETEEN LATE THURSDAY THE OPERATOR OF A GROUP OF TELEVISION STATIONS AFFILIATED WITH THE FOX BROADCASTING NETWORK PLANS TO USE PROCEEDS TO REDEEM OUTSTANDING SERIES B. EXCHANGEABLE PREFERRED STOCK AND TO REPAY SENIOR DEBT ALANTEC CLOSED AT FOURTEEN AND SEVEN EIGHTHS ABOVE ITS OFFERING PRICE FRIDAY OF THIRTEEN THE COMPANY WHICH DESIGNS DEVELOPS MAKES MARKETS AND SUPPORTS INTELLIGENT SWITCHING HUBS FOR ETHERNET AND FDDI LOCAL AREA NETWORKS EXPECTS TO USE PROCEEDS FOR GENERAL CORPORATE PURPOSES CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE MICRODYNE CORPORATION ALEXANDRIA VIRGINIA A MAKER OF COMPUTER HARDWARE AND SOFTWARE ISN'T INVOLVED IN A LAWSUIT AGAINST PHOENIX LASER SYSTEMS INCORPORATED YESTERDAY'S SMALL STOCK FOCUS COLUMN INCORRECTLY IDENTIFIED THE PUBLICLY TRADED COMPANY AS BEING INVOLVED IN THE SUIT PHOENIX LASER SYSTEMS SAID CLOSELY HELD MICRODYNE INCORPORATED ESCONDIDO CALIFORNIA IS THE COMPANY INVOLVED IN THE SUIT ORANGE AND ROCKLAND UTILITIES INCORPORATED PEARL RIVER N. Y. SAID IT WOULD PAY FOUR HUNDRED THIRTY NINE THOUSAND NINETY SIX DOLLARS TO CUSTOMERS IN NEW YORK AND NEW JERSEY TO ACCOUNT FOR IMPROPERLY SPENT FUNDS THE REFUND PAYMENTS STEM FROM THE MISAPPROPRIATION OF FUNDS BY A ONE TIME ORANGE AND ROCKLAND UTILITIES EXECUTIVE LINDA WINIKOW MS. WINIKOW FORMERLY VICE PRESIDENT OF CORPORATE POLICY AND EXTERNAL AFFAIRS HAS PLEADED GUILTY IN ROCKLAND COUNTY DISTRICT COURT TO MAKING ILLEGAL CAMPAIGN CONTRIBUTIONS AS WELL AS GRAND LARCENY AND COMMERCIAL BRIBE RECEIVING HER SENTENCING IS SCHEDULED FOR EARLY APRIL THE UTILITY SAID NEW YORK ELECTRIC CUSTOMERS WHO USE ABOUT FIVE HUNDRED KILOWATT HOURS A MONTH GOT ABOUT THIRTY SEVEN CENTS CREDIT FOR NOVEMBER AND DECEMBER AND WILL GET AN ADDITIONAL EIGHTEEN POINT FIVE CENTS CREDIT IN JANUARY GAS CUSTOMERS RECEIVED ABOUT FORTY CENTS CREDIT FOR NOVEMBER AND DECEMBER AND WILL RECEIVE AN ADDITIONAL TWENTY CENTS IN CREDIT NEW JERSEY ELECTRIC CUSTOMERS WILL RECEIVE ABOUT FORTY FIVE CENTS CREDIT OVER A TWO MONTH PERIOD BEGINNING FEBRUARY THIRD NEW YORK STATE REGULATORS CONTINUE TO INVESTIGATE ORANGE AND ROCKLAND THE UTILITY SAID IT IS ACTIVELY COOPERATING WITH THE INVESTIGATION NEW JERSEY REGULATORS ARE LOOKING INTO THE COMPANY AS PART OF A PREVIOUSLY PLANNED MANAGEMENT AUDIT THOMAS J. LEE COMPANY A BOSTON INVESTMENT FIRM THAT HOLDS A FORTY SEVEN POINT FIVE PERCENT STAKE IN SNAPPLE BEVERAGE CORPORATION SAID IT SIGNED A NONBINDING LETTER OF INTENT TO ACQUIRE A CLOSELY HELD BOTTLER AND DISTRIBUTOR FOR ABOUT THIRTY TWO MILLION DOLLARS MAJORITY HOLDERS OF KBG HOLDINGS INCORPORATED THE PARENT OF KEMMERER BOTTLING GROUP INCORPORATED DARIEN ILLINOIS SIGNED THE NONBINDING LETTER TO SELL THEIR EQUITY INTEREST TO THOMAS H. LEE AS PART OF THE PROPOSED TRANSACTION SNAPPLE WOULD ACQUIRE A TWENTY PERCENT STAKE IN KBG HOLDINGS KEMMERER IS AN INDEPENDENT REGIONAL BOTTLER AND DISTRIBUTOR OF CARBONATED AND OTHER BEVERAGES IN THE MIDWEST WITH ANNUAL SALES OF MORE THAN TWO HUNDRED MILLION DOLLARS SNAPPLE WHICH MAKES A WIDE RANGE OF MOSTLY BOTTLED BEVERAGES HAS BEEN A HIGH FLYING STOCK SINCE THE VALLEY STREAM N. Y. COMPANY WENT PUBLIC IN DECEMBER NINETEEN NINETY TWO THE PROPOSED TRANSACTION IS SUBJECT TO A DEFINITIVE AGREEMENT SHAREHOLDER APPROVAL AND REGULATORY CLEARANCE QUOTE THE RECOVERY DID NOT REALLY GET GOING UNTIL RECENTLY AND A LOT OF WORKING PEOPLE ARE ONLY NOW STARTING TO SEE SOME BENEFIT CLEARLY IT IS PREMATURE AT THIS POINT FOR THE FED TO START SLOWING THE ECONOMY SENATOR SARBANES AND LIKE MINDED OTHERS ARE CRITICIZING THE FED'S QUARTER POINT RISE IN THE FED FUNDS RATE AS A RESPONSE TO UNPROVEN INFLATION FEARS WE TOO WANT THE STRONG ECONOMY TO PERSIST BUT WE'RE FAIRLY CERTAIN THAT A FED THAT TIGHTENS TOO LATE AFTER THE INFLATION GOBLINS ARE LOOSE WILL RISK THE RETURN OF THE STAGFLATION DEVIL RATHER THAN FEARING THAT THIS QUARTER POINT WAS PREMATURE INDEED WE FEAR IT MAY BE A BIT LATE GIVEN THE UNUSUAL EXPLICIT ANNOUNCEMENT OF THE TIGHTENING THE FED MAY SHARE THIS FEAR A BRISK MONETARY POLICY HAS OFFSET THE DRAG OF THE CLINTON TAX INCREASES THE ECONOMY WAS ALSO BOOSTED BY A RELAXATION OF A REGULATORY CREDIT CRUNCH AND THE SUCCESS OF NAFTA THIS COMBINATION PRODUCED ECONOMIC GROWTH AND RENEWED OPTIMISM BUT MONETARY STIMULUS CANNOT GO ON FOREVER WITHOUT STIRRING INFLATION AND AFTER ONE GOOD QUARTER THE FED FEELS A NEED TO TIGHTEN WE HOPE THAT FRIDAY'S SELL OFF IS A TEMPORARY FINANCIAL PHENOMENON BUT IF IT TURNS OUT TO PRESAGE A DOWNTURN IN THE REAL ECONOMY THE SOLUTION IS NOT TO BEAT ON THE FED TO PRINT MORE MONEY THE SOLUTION WILL BE TO REVERSE THE CLINTON TAX INCREASES HIGH SCHOOLS BECAME ACCUSTOMED TO DECLINING ROLLS IN THE NINETEEN EIGHTIES AS THE SMALLER BABY BUST GENERATION FOLLOWED THE LARGE BABY BOOM BUT SCHOOLS SOON WILL SEE A LONG TERM RESURGENCE OF GRADUATES AS THE BABY BOOMLET COMES OF AGE TODAY'S U. S. HIGH SCHOOL GRADUATES WERE BORN IN THE MID NINETEEN SEVENTIES WHEN THE NUMBER OF BIRTHS BEGAN TO TURN UPWARD AFTER MORE THAN A DECADE OF DECLINE EIGHTEEN YEARS LATER THE BABY BOOMLET CONTINUES AND SOON WILL BOOST THE RANKS OF THOSE ATTENDING COMMENCEMENT EXERCISES AFTER DECLINING THROUGHOUT THE NINETEEN EIGHTIES THE NUMBER OF HIGH SCHOOL GRADUATES WILL RISE IN NINETEEN NINETY FIVE ACCORDING TO THE WESTERN INTERSTATE COMMISSION FOR HIGHER EDUCATION BASED IN BOULDER COLORADO THE NUMBER OF PUBLIC AND PRIVATE HIGH SCHOOL GRADUATES NATIONWIDE SHOULD GROW THIRTY TWO PERCENT BETWEEN NINETEEN NINETY TWO AND TWO THOUSAND NINE THIS INCREASE WILL BE ALMOST ENTIRELY DUE TO A GROWING POPULATION OF HIGH SCHOOL SENIORS ALTHOUGH THE PROJECTIONS ALSO ASSUME THAT A SLIGHT DECLINE IN DROPOUT RATES WILL CONTINUE THE GAINS WILL BE PARTICULARLY STRONG IN RAPIDLY GROWING WESTERN STATES NEVADA IS EXPECTED TO LEAD THE NATION WITH A PROJECTED ONE HUNDRED NINETY EIGHT PERCENT GAIN IN HIGH SCHOOL GRADUATES BETWEEN NINETEEN NINETY TWO AND TWO THOUSAND NINE FOLLOWED BY AN EIGHTY ONE PERCENT INCREASE IN CALIFORNIA AND SEVENTY SEVEN PERCENT IN ARIZONA MOST STATES WILL SEE MORE MODEST INCREASES IN NUMBERS OF HIGH SCHOOL GRADUATES AND DESPITE THE BABY BOOMLET A FEW STATES THAT HAVE HAD HEAVY POPULATION OUTFLOWS WILL SEE DECLINES LOUISIANA MAINE NORTH DAKOTA WEST VIRGINIA AND WYOMING THESE STATES MAY HAVE TO COMPETE WITH THEIR NEIGHBORS FOR QUALIFIED ENTRY LEVEL WORKERS AND COLLEGE STUDENTS PEOPLE WHO RELOCATE ACROSS COUNTY OR STATE LINES ARE OLDER THAN THE AVERAGE MOVER WHO MOSTLY ARE ON THE YOUNG SIDE OF THE FORTY ONE POINT FIVE MILLION AMERICANS AGED ONE YEAR OR OLDER WHO RELOCATED BETWEEN MARCH NINETEEN NINETY ONE AND MARCH NINETEEN NINETY TWO SIXTY FOUR PERCENT CHOSE A HOME IN THE SAME COUNTY A NEW CENSUS BUREAU REPORT SHOWS THAT NINETEEN PERCENT WENT TO ANOTHER COUNTY IN THE SAME STATE AND SEVENTEEN PERCENT MOVED TO ANOTHER STATE AN ADDITIONAL ONE POINT THREE MILLION PEOPLE SETTLED IN THE U. S. FROM ABROAD SEVENTEEN PERCENT OF PEOPLE WHO MOVED ACROSS COUNTY OR STATE LINES WERE AGED FORTY FIVE AND OLDER COMPARED WITH THIRTEEN PERCENT OF THOSE WHO MOVED WITHIN THE SAME COUNTY INTERCOUNTY MOVERS ALSO WERE BETTER EDUCATED MORE AFFLUENT AND MORE LIKELY TO BE HOMEOWNERS THAN WERE THOSE WHO DIDN'T CROSS COUNTY LINES HOWEVER THE MAJORITY OF MOVERS OVERALL ARE YOUNG AND RENT THEIR HOMES AND REFLECTING THE OVERALL POPULATION FIFTY ONE PERCENT OF ALL MOVERS AGED FIFTEEN OR OLDER HAD NINETEEN NINETY ONE PERSONAL INCOMES BELOW FIFTEEN THOUSAND DOLLARS YOUNGER PEOPLE AND RENTERS ARE MORE LIKELY TO MOVE IN A GIVEN YEAR PEOPLE AGED ONE TO THIRTY MADE UP FORTY THREE PERCENT OF THE U. S. POPULATION IN MARCH NINETEEN NINETY TWO BUT THEY ACCOUNTED FOR SIXTY TWO PERCENT OF THOSE WHO MADE A RECENT LOCAL MOVE AND FIFTY SEVEN PERCENT OF THOSE WHO MOVED TO ANOTHER COUNTY OR STATE AND ALTHOUGH JUST THIRTY THREE PERCENT OF THE GENERAL POPULATION LIVED IN RENTAL HOUSING SIXTY EIGHT PERCENT OF SHORT DISTANCE AND SIXTY ONE PERCENT OF LONG DISTANCE MOVERS RENTED THEIR HOMES IN THESE DAYS OF DEPRECIATING HOME VALUES HOME EQUITY LOANS APPEAL TO PEOPLE WHO WANT TO IMPROVE THE HOMES THEY ALREADY OWN IN NINETEEN NINETY THREE ELEVEN PERCENT OF AMERICAN HOMEOWNERS HAD LOANS SECURED BY THE HOME EQUITY THEY OWNED ACCORDING TO A STUDY CONDUCTED BY BANK ADVERTISING NEWS AND THE GALLUP ORGANIZATION NINE PERCENT OF HOMEOWNERS HAD REVOLVING LINES OF CREDIT SECURED BY HOME EQUITY BOTH SHARES HAVE FALLEN FROM NINETEEN NINETY'S LEVELS OF TWENTY ONE PERCENT AND THIRTEEN PERCENT RESPECTIVELY BUT GALLUP SENIOR ANALYST PHILIP DORIOT SAYS THE DOWNWARD TREND ISN'T STATISTICALLY SIGNIFICANT THOSE WITH LOANS DIFFER FROM THOSE WITH LINES OF CREDIT NORTHEASTERN HOMEOWNERS ARE ALMOST TWICE AS LIKELY AS THOSE IN THE MIDWEST TO HAVE LOANS SECURED BY HOME EQUITY FIFTEEN PERCENT COMPARED WITH NINE PERCENT BUT MIDWESTERNERS ARE MORE LIKELY TO HAVE A REVOLVING LINE OF CREDIT SECURED BY HOME EQUITY ELEVEN PERCENT COMPARED WITH EIGHT PERCENT OF NORTHEASTERNERS AND SOUTHERNERS HOMEOWNERS WITH SOME COLLEGE EDUCATION OR ANNUAL INCOMES OF FORTY THOUSAND DOLLARS TO FIFTY NINE THOUSAND NINE HUNDRED NINETY NINE DOLLARS ARE MOST LIKELY TO HAVE HOME EQUITY LOANS AT SEVENTEEN PERCENT THOSE WITH COLLEGE DEGREES AND INCOMES OF SIXTY THOUSAND DOLLARS OR MORE ARE MOST LIKELY TO HAVE REVOLVING LINES OF CREDIT TWELVE PERCENT AND THIRTEEN PERCENT RESPECTIVELY THE MOST COMMON REASON PEOPLE GIVE FOR BORROWING AGAINST THEIR HOME'S EQUITY IS TO FIX UP THOSE HOMES TWENTY NINE PERCENT OF BORROWERS CITED HOME IMPROVEMENTS REPAIRS OR ADDITIONS FOR OBTAINING SUCH A LOAN OR LINE OF CREDIT OTHER REASONS INCLUDED ATTRACTIVELY LOW INTEREST RATES TEN PERCENT STARTING OR MAINTAINING A BUSINESS NINE PERCENT AND CONSOLIDATING BILLS NINE PERCENT PEOPLE OFTEN CHOOSE HOME EQUITY LOANS OVER OTHER TYPES BECAUSE THEY OFFER LOWER INTEREST RATES TWENTY NINE PERCENT MENTIONED THIS REASON SEVENTEEN PERCENT CITED TAX ADVANTAGES THE INTEREST PAID ON HOME EQUITY LOANS IS TAX DEDUCTIBLE AND FIFTEEN PERCENT SAID THESE LOANS ARE EASIER TO APPLY FOR AND OBTAIN ONE IN TEN AMERICAN ADULTS ENJOYS WOODWORKING AS A HOBBY FINDS A SURVEY CONDUCTED FOR AMERICAN WOODWORKER MAGAZINE BY NFO RESEARCH BEGINNERS AVERAGE THREE HOURS A WEEK ON THEIR HOBBY COMPARED WITH FOURTEEN HOURS FOR ADVANCED CRAFTSMEN FORTY PERCENT OF NOVICES HAVE THEIR OWN WORKSHOPS COMPARED WITH SEVENTY NINE PERCENT OF THEIR MORE EXPERT COUNTERPARTS AMERICANS MADE NEARLY NINETEEN MILLION VISITS A YEAR TO PSYCHIATRISTS IN NINETEEN EIGHTY NINE AND NINETEEN NINETY SAYS A NEW REPORT FROM THE NATIONAL CENTER FOR HEALTH STATISTICS BOYS UNDER THE AGE OF FIFTEEN ARE SIGNIFICANTLY MORE LIKELY THAN GIRLS TO DO SO WHILE WOMEN AGED SIXTY FIVE OR OLDER ARE MORE LIKELY THAN ELDERLY MEN TO VISIT A PSYCHIATRIST M. I. M. HOLDINGS LIMITED AN AUSTRALIAN METAL MINING AND REFINING COMPANY SAID FOUR INTERNATIONAL BANKS HAVE COMMITTED TO UNDERWRITE AS MUCH AS ONE HUNDRED SEVENTY FIVE MILLION DOLLARS IN FINANCING TO ASSIST WITH DEVELOPMENT OF M. I. M.'S MCARTHUR RIVER ZINC LEAD SILVER MINE IN AUSTRALIA'S NORTHERN TERRITORY THE BANKS ARE WESTPAC BANKING CORPORATION NATWEST AUSTRALIA BANK LIMITED A UNIT OF NATIONAL WESTMINSTER BANK P. L. C. CREDIT LYONNAIS AUSTRALIA LIMITED A UNIT OF CREDIT LYONNAIS OF FRANCE AND AIDC LIMITED SEPARATELY M. I. M. SAID IT SIGNED A DEFINITIVE AGREEMENT WITH INTERNATIONAL MUSTO EXPLORATIONS LIMITED OF CANADA TO DEVELOP JOINTLY THE BAJO DE LA ALUMBRERA GOLD COPPER DEPOSIT IN CATAMARCA PROVINCE ARGENTINA M. I. M. HAS AGREED TO PAY INTERNATIONAL MUSTO ONE HUNDRED THIRTY MILLION DOLLARS FOR ITS FIFTY PERCENT STAKE IN THE PROJECT THE U.N. ' S. CHIEF SOUGHT NATO BACKING FOR AIR STRIKES IN BOSNIA AS SARAJEVANS MOURNED THE DEATHS OF SIXTY EIGHT PEOPLE KILLED IN A SHELLING ATTACK SATURDAY U. N. SECRETARY GENERAL BOUTROS GHALI ASKED THE WESTERN ALLIANCE TO GIVE HIM THE POWER TO ORDER NATO AIR STRIKES AGAINST ARTILLERY POSITIONS IN AND AROUND THE BOSNIAN CAPITAL A U. N. SPOKESMAN SAID MEANWHILE U. S. CARGO PLANES EVACUATED VICTIMS OF THE SHELLING AT SARAJEVO'S CENTRAL MARKET IT WAS THE DEADLIEST ATTACK IN THE TWENTY TWO MONTH SIEGE OF THE BOSNIAN CAPITAL IN WASHINGTON PRESIDENT CLINTON CALLED THE LATEST ATTACK QUOTE OUTRAGEOUS QUOTE AND SAID HE HOPED THAT QUOTE THE SHOCK OF THESE DEATHS QUOTE MIGHT SPUR NEW PEACE OVERTURES IN BOSNIA A THIRD BUSINESS GROUP SAID IT REJECTED CLINTON'S HEALTH REFORM PLAN THE NATIONAL ASSOCIATION OF MANUFACTURERS ANNOUNCED THAT IT CAN'T SUPPORT THE PRESIDENT'S PLAN IN ITS PRESENT FORM UNTIL SATURDAY'S FIFTY SIX TO TWENTY VOTE BY THE N. A. M.'S BOARD THE GROUP HAD FOLLOWED A STRATEGY OF PUBLIC NEUTRALITY THE CLINTON PLAN ALSO WAS REJECTED LAST WEEK BY THE BUSINESS ROUNDTABLE AND U. S. CHAMBER OF COMMERCE MEANWHILE ROSS PEROT SAID HIS ORGANIZATION EVENTUALLY MAY ENDORSE REPRESENTATIVE COOPER'S RIVAL PROPOSAL COOPER RECEIVED THIRTY FIVE PERCENT OF HIS IDENTIFIABLE CAMPAIGN CONTRIBUTIONS FROM THE HEALTH CARE INDUSTRY IN THE SECOND HALF OF NINETEEN NINETY THREE ACCORDING TO AN ANALYSIS BY A GROUP THAT OPPOSES HIS PLAN AN INTERNET INVESTIGATION TEAM SPOTTED WHAT MAY BE THE LARGEST COMPUTER SECURITY BREACH ON THE INTERNET AND URGED TENS OF THOUSANDS OF USERS LAST WEEK TO CHANGE THEIR PASSWORDS THE GROUP THAT PUT OUT THE WARNING SAID IT ISN'T CLEAR WHETHER THE INVADERS VANDALIZED COMPUTER SYSTEMS OR UNLEASHED VIRUSES THE CLINTON ADMINISTRATION FACES A BACKLASH FROM HIGH TECH FIRMS OVER ITS DECISION TO PROCEED WITH A PLAN TO PUSH ONE SYSTEM FOR PROTECTING TELEPHONE AND COMPUTER COMMUNICATIONS THE DECISION CAME AFTER A REVIEW OF PLANS FOR A NEW COMPUTER CHIP TO BE INCLUDED IN DEVICES THAT SCRAMBLE SOUNDS OR DATA FOUR TAX ANALYSTS AGREE THAT THE CLINTONS APPEAR TO HAVE TAKEN NEARLY TWENTY THOUSAND DOLLARS IN IMPROPER INTEREST DEDUCTIONS DURING THE NINETEEN EIGHTIES ON WHITEWATER RELATED LOANS A WHITE HOUSE AIDE DENIED THAT THE CLINTONS TOOK ANY IMPROPER DEDUCTIONS THE DEPUTY U. S. ATTORNEY GENERAL VOICED COMPLAINTS ABOUT HAVING WHITE HOUSE LAWYERS SIT IN ON STAFF INTERVIEWS BY JUSTICE DEPARTMENT INVESTIGATORS FOLLOWING THE JULY SUICIDE OF VINCENT FOSTER THE WHITE HOUSE DEPUTY COUNSEL A FIGURE SKATING PANEL FOUND REASONABLE GROUNDS TO BELIEVE TONYA HARDING WAS INVOLVED IN A JANUARY SIXTH ATTACK ON RIVAL SKATER NANCY KERRIGAN THE U. S. FIGURE SKATING ASSOCIATION ISSUED A STATEMENT SATURDAY CALLING FOR A DISCIPLINARY HEARING AGAINST HARDING BUT THE PANEL STOPPED SHORT OF OUSTING HER FROM THE U. S. OLYMPIC TEAM A TEN POINT THREE PERCENT POSTAL RATE BOOST MAY NOT BE HIGH ENOUGH SOME POSTAL SERVICE BOARD MEMBERS APPARENTLY THINK THE RISE BACKED BY POSTMASTER GENERAL RUNYON AND APPLYING EVENLY TO ALL CLASSES OF MAIL IS THE LOWER OF TWO PROPOSED INCREASES THAT ARE TO BE PRESENTED TO THE BOARD BYRON DE LA BECKWITH WAS CONVICTED SATURDAY OF MURDERING CIVIL RIGHTS LEADER MEDGAR EVERS IN NINETEEN SIXTY THREE BECKWITH SEVENTY THREE AN AVOWED WHITE SUPREMACIST HAD ESCAPED CONVICTION BY TWO ALL WHITE JURIES IN NINETEEN SIXTY FOUR HE WAS IMMEDIATELY SENTENCED TO LIFE IN PRISON AFTER THE VERDICT BY A JACKSON MISSISSIPPI JURY OF EIGHT BLACKS AND FOUR WHITES VETERAN DIPLOMAT AHTISAARI WON FINLAND'S FIRST DIRECT PRESIDENTIAL ELECTION SETTING UP POTENTIAL CONFLICTS WITH THE CENTER RIGHT GOVERNMENT OF PRIME MINISTER AHO AHTISAARI LEADER OF THE SOCIAL DEMOCRATS WANTS TO EXPAND THE ROLE OF THE PRESIDENCY USUALLY CONFINED TO FOREIGN POLICY TO TACKLE THE NATION'S SEVERE ECONOMIC PROBLEMS RUSSIA'S FORMER ECONOMIC CZAR DECLARED THAT YELTSIN HASN'T CHANGED HIS ATTITUDE TOWARD MARKET REFORM IN AN INTERVIEW GAIDAR STRESSED THAT THE PRESIDENT IS THE STRONGEST POLITICAL FACTOR IN FAVOR OF REFORM IN THE COUNTRY DIED JOSEPH COTTEN EIGHTY EIGHT VETERAN ACTOR WHO FIRST GAINED NATIONAL FAME FOR HIS ROLE IN THE NINETEEN FORTY ONE FILM CITIZEN KANE IN LOS ANGELES OF PNEUMONIA WORD THAT THE BUDGET DEFICIT IS ACTUALLY DECLINING HAS UNLEASHED A WAVE OF UNJUSTIFIED EUPHORIA IN SOME QUARTERS ABOUT THE STATE OF FEDERAL FINANCES NOW THAT LAST YEAR'S TAX INCREASES AND SPENDING RESTRAINTS ARE FIRMLY IN PLACE AND A PLAN PROMISING MUCH SLOWER GROWTH IN HEALTH CARE COSTS IS IN THE PIPELINE SOME ARGUE THAT THE MESSY JOB OF REDUCING THE DEFICIT IS PRETTY MUCH DONE QUOTE IF WE CONTINUE TO STICK TO THE DEFICIT REDUCTION PLAN THEN WE CLEARLY HAVE SET THE DEFICIT ON A DOWNWARD TRACK QUOTE BUDGET DIRECTOR LEON PANETTA SAID THE OTHER DAY IF WE CAN ENACT HEALTH CARE REFORM WE CAN CONTINUE THAT TRACK INTO THE NEXT CENTURY DON'T BET ON IT EVEN IF CONGRESS PASSES HEALTH REFORM IN SOME FASHION ANOTHER ROUND OF BROAD BASED TAX INCREASES AND BENEFIT CUTS PROBABLY WILL BE NEEDED BEFORE THE DECADE ENDS TREASURY SECRETARY LLOYD BENTSEN FOR ONE SAYS SO PUBLICLY AFTER LISTENING TO MR. PANETTA'S COMMENT MR. BENTSEN STEPPED TO THE MICROPHONE AND SAID LET ME ADD TO THAT THAT I THINK OVER THE YEARS TO COME WE'LL BE LOOKING FOR ADDITIONAL CUTS IN THAT DEFICIT YES LAST YEAR'S LAW TOOK A SUBSTANTIAL BITE OUT OF THE DEFICIT FOUR HUNDRED THIRTY THREE BILLION DOLLARS OVER FIVE YEARS IMPROVING THE LONG TERM OUTLOOK IN MARKED CONTRAST TO THE MONTHS FOLLOWING THE NINETEEN NINETY DEFICIT REDUCTION EFFORT THERE HAVE BEEN NO UNPLEASANT SURPRISES SO FAR EXCEPT FOR THE LOS ANGELES EARTHQUAKE WHICH WILL COST THE FEDERAL GOVERNMENT ABOUT EIGHT BILLION DOLLARS MR. PANETTA IS ALSO RIGHT THAT THE SOARING COST OF FEDERAL SPENDING ON HEALTH PROGRAMS FOR THE POOR AND THE OLD MEDICAID AND MEDICARE IS THE REASON THE DEFICIT WILL RISE AGAIN UNDER CURRENT POLICIES THE TOP LINE ON THE ACCOMPANYING CHART SHOWS WHAT THE CONGRESSIONAL BUDGET OFFICE PREDICTS IF THE FEDERAL GOVERNMENT FAILS TO RESTRAIN ITS HEALTH CARE SPENDING THE BOTTOM LINE SHOWS WHAT WOULD HAPPEN IF THE GROWTH RATE OF MEDICARE AND MEDICARE SPENDING WERE HALVED AND SPENDING ON THESE PROGRAMS GREW AT THE SAME PACE AS EVERYTHING ELSE IN THE FEDERAL BUDGET BUT ONLY A FEW PEOPLE PRESIDENT CLINTON'S HEALTH ADVISER IRA MAGAZINER IS ONE BELIEVE THE GOVERNMENT CAN SIMULTANEOUSLY GUARANTEE HEALTH INSURANCE TO ALL AND SAVE THE GOVERNMENT SUBSTANTIAL SUMS OVER THE NEXT FIVE OR SIX YEARS THE TOP LINE ON THE CHART MAY BE TOO PESSIMISTIC BUT THE BOTTOM LINE IS PROBABLY TOO OPTIMISTIC ENDING UP SOMEWHERE BETWEEN THE TWO LEAVES A DEFICIT STILL TOO LARGE TO IGNORE IS HEALTH CARE THE SOLUTION PART OF IT BUT NOT ALL OF IT SAYS ROBERT SHAPIRO OF THE PROGRESSIVE POLICY INSTITUTE A CENTRIST DEMOCRATIC THINK TANK MY JUDGMENT SAYS ECONOMIST CHARLES SCHULTZE OF THE BROOKINGS INSTITUTION IS THAT NOTHING THAT CAN REASONABLY BE DONE IN THE WAY OF HEALTH CARE REFORM EVEN IF SUCCESSFUL IN THE LONG RUN IS GOING TO CONTROL THE GROWING COST OF MEDICAL CARE SUFFICIENTLY TO GIVE US A DESIRABLE BUDGETARY PICTURE AROUND THE TURN OF THE CENTURY MR. MAGAZINER IS IMPATIENT WITH THIS VIEW ARGUING THAT THERE IS SO MUCH WASTE IN THE U. S. HEALTH CARE SYSTEM THAT THERE MUST BE ROOM TO SAVE BIG BUCKS BUT EVEN IF CONGRESS TACKLES THE HEALTH CARE ISSUE THIS YEAR IT COULD TAKE A DECADE BEFORE ANYONE KNOWS WHETHER CONGRESS IS SUCCESSFULLY CONTROLLING FEDERAL HEALTH SPENDING MEANWHILE THE DEFICIT COULD START TO WIDEN AGAIN IT WON'T PROVOKE A CATASTROPHIC STOCK MARKET CRASH OR A SUDDEN RECESSION BUT IT WILL CONTINUE TO ERODE THE PROSPECTS FOR THE FUTURE A BIG AND IT'S STILL BIG GOVERNMENT DEFICIT SHOWS THAT THE NATION CONTINUES TO SPEND TOO MUCH FOR TODAY AND TO SET ASIDE TOO LITTLE FOR TOMORROW THERE IS ANOTHER REASON TO ACT SOON MAKING ECONOMIC PREDICTIONS BEYOND TWO THOUSAND FOUR IS GENERALLY FOOLISH BUT ONE SURE FACT IS THAT THE BABY BOOMERS THE OLDEST OF WHOM TURN FORTY EIGHT THIS YEAR WILL BE CLOSER TO RETIREMENT AT THAT TIME AND THE CLOSER THE BABY BOOMERS ARE TO RETIRING THE HARDER IT WILL BE FOR POLITICIANS TO MAKE THE CHANGES IN SOCIAL SECURITY AND MEDICARE THAT MOST ECONOMISTS THINK ARE NEEDED TO PREVENT ENORMOUS DEFICITS OR HUGE TAX INCREASES IN THE FUTURE THE BABY BOOMERS WILL GET WHATEVER RETIREMENT BENEFITS HAVE BEEN PROMISED QUOTE WE WILL BE POLITICALLY POWERFUL ENOUGH TO ENSURE THAT QUOTE SAYS DEBORAH STEELMAN A REPUBLICAN BABY BOOMER WHO HEADED A COMMISSION THAT EXAMINED ALL THIS IN NINETEEN NINETY ONE WE WILL HURT THE GENERATIONS BEHIND US THE LAW ALREADY PROVIDES THAT THE SOCIAL SECURITY RETIREMENT AGE IS TO CLIMB GRADUALLY FROM SIXTY FIVE TO SIXTY SIX IN TWO THOUSAND NINE AND SIXTY SEVEN IN TWO THOUSAND TWENTY SEVEN WITH PEOPLE LIVING LONGER AND LONGER MR. BENTSEN HAS SAID IT IS TIME TO THINK ABOUT ACCELERATING THAT TIMETABLE OR RAISING THE AGE FURTHER OTHERS SUGGEST MAKING THE ELDERLY PAY MORE OF THE MEDICARE TAB OR TRIMMING OR TAXING BENEFITS PAID TO THE RELATIVELY WELL OFF OR IMPOSING NEW BROAD BASED TAXES NOW NONE OF THIS WILL BE MENTIONED IN THE BUDGET MR. CLINTON UNVEILS TODAY ENACT MY HEALTH CARE PLAN HE WILL SAY AND WE CAN SLAY THE DEFICIT DRAGON BUT A HARD LOOK AT THE UNDERLYING TRENDS SUGGESTS OTHERWISE WESTWOOD ONE INCORPORATED CULVER CITY CALIFORNIA SAID IT COMPLETED ITS ONE HUNDRED ONE POINT THREE MILLION DOLLAR PURCHASE OF THE RADIO NETWORK BUSINESS OF INFINITY BROADCASTING CORPORATION'S UNISTAR RADIO NETWORKS INCORPORATED IN A TRANSACTION GIVING NEW YORK BASED INFINITY A TWENTY FIVE PERCENT STAKE IN WESTWOOD ONE AS EXPECTED INFINITY WILL MANAGE WESTWOOD ONE WITH MEL KARMAZIN INFINITY'S CHIEF EXECUTIVE OFFICER SUCCEEDING NORMAN PATTIZ AS WESTWOOD ONE'S CHIEF EXECUTIVE OFFICER MR. PATTIZ REMAINS WESTWOOD ONE CHAIRMAN WESTWOOD ONE OPERATES THE MUTUAL BROADCASTING SYSTEM THE N. B. C. RADIO NETWORK AND OTHER RADIO NETWORKS WHILE INFINITY OWNS TWENTY TWO STATIONS IN THE NATION'S LARGEST RADIO MARKETS FOUR TAX EXPERTS AGREE THAT BILL AND HILLARY RODHAM CLINTON APPEAR TO HAVE TAKEN NEARLY TWENTY THOUSAND DOLLARS IN IMPROPER INTEREST DEDUCTIONS DURING THE NINETEEN EIGHTIES ON LOANS RELATED TO WHITEWATER DEVELOPMENT COMPANY AFTER ANALYZING THE CLINTONS' INCOME TAX RETURNS AND OTHER FINANCIAL DOCUMENTS THE TAX EXPERTS CONCUR THAT THE INTERNAL REVENUE SERVICE COULD PROBABLY CHALLENGE THE CLINTONS' PERSONAL TAX DEDUCTIONS FOR NINETEEN THOUSAND FIVE HUNDRED NINETY EIGHT DOLLARS IN INTEREST PAID ON CORPORATE LOANS THAT THE WHITE HOUSE ACKNOWLEDGES WERE WHITEWATER LIABILITIES BY ONE EXPERT'S CALCULATIONS THE DEDUCTIONS REDUCED THE CLINTONS' TAXES BY MORE THAN EIGHT THOUSAND SEVEN HUNDRED DOLLARS IN ADDITION THE EXPERTS SAY I. R. S. AUDITORS COULD PROBABLY OBJECT TO A ONE THOUSAND TWO HUNDRED SEVENTY FIVE DOLLAR DEDUCTION THAT THE CLINTONS TOOK ON THEIR NINETEEN EIGHTY EIGHT RETURNS FOR PAYING WHITEWATER'S REAL ESTATE TAXES BRUCE LINDSEY A SENIOR WHITE HOUSE OFFICIAL ANGRILY DENIED THAT THE CLINTONS HAD TAKEN ANY IMPROPER DEDUCTIONS HE ARGUED THAT THE CLINTONS HAVE DOCUMENTATION TO SHOW THAT THEY WERE ENTITLED TO ALL THE DEDUCTIONS IN QUESTION THE WALL STREET JOURNAL HAD STEVEN BANKLER A CERTIFIED PUBLIC ACCOUNTANT FROM SAN ANTONIO TEXAS ANALYZE THE CLINTONS' TAX RETURNS FROM NINETEEN EIGHTY THROUGH NINETEEN NINETY TWO TO ASSESS HOW THEY TREATED TAX ISSUES ARISING FROM THEIR WHITEWATER INVESTMENT A GROUP OF FOUR OTHER TAX EXPERTS A FORMER SENIOR I. R. S. EXECUTIVE A PARTNER IN A MAJOR ACCOUNTING FIRM A SENIOR TAX MANAGER WITH A BIG SIX ACCOUNTING FIRM AND MICHAEL GALLAGHER A GEORGE WASHINGTON UNIVERSITY PROFESSOR OF ACCOUNTANCY WERE SOUNDED OUT ON MR. BANKLER'S ANALYSIS ONLY THE SENIOR TAX MANAGER COULD CONCEIVE OF A TAX APPROACH THAT MIGHT ALLOW THE CLINTONS TO CLAIM THE DEDUCTIONS IN QUESTION HE SAYS HE WOULDN'T LIKE TO DEFEND THAT APPROACH TO I. R. S. AUDITORS OF THOSE PARTICIPATING IN THE JOURNAL'S ANALYSIS MESSRS BANKLER AND GALLAGER WERE THE ONLY ONES WILLING TO BE IDENTIFIED QUESTIONS HAVE ARISEN IN RECENT WEEKS ABOUT THE CLINTONS' INTEREST DEDUCTIONS AND AS A RESULT THE JOURNAL ASKED FOR A THOROUGH ANALYSIS THE JOURNAL INQUIRY FOCUSED ON THE NINETEEN EIGHTIES TIME MAGAZINE IS REPORTING IN THIS WEEK'S EDITION THAT QUESTIONABLE INTEREST DEDUCTIONS REDUCED THE CLINTONS' TAX LIABILITY BY AS MUCH AS ELEVEN THOUSAND DOLLARS IN NINETEEN SEVENTY EIGHT NINETEEN SEVENTY NINE AND NINETEEN EIGHTY THE CLINTONS HAVE ACKNOWLEDGED TAKING ABOUT FORTY THOUSAND DOLLARS IN WHITEWATER RELATED INTEREST DEDUCTIONS WHICH THE WHITE HOUSE HAS SAID MADE UP PART OF THE CLINTONS' TOTAL LOSS OF SIXTY EIGHT THOUSAND NINE HUNDRED DOLLARS ON WHITEWATER A REAL ESTATE VENTURE THEY UNDERTOOK IN NINETEEN SEVENTY EIGHT WITH JAMES MCDOUGAL OWNER OF NOW DEFUNCT MADISON GUARANTY SAVINGS AND LOAN IN LITTLE ROCK ARKANSAS ROBERT FISKE THE NEWLY APPOINTED SPECIAL COUNSEL IS INVESTIGATING AMONG OTHER THINGS WHETHER MADISON GUARANTY FUNDS WERE ILLEGALLY DIVERTED INTO THE WHITEWATER ESTATES DEVELOPMENT OR INTO THE CAMPAIGN COFFERS OF THEN GOVERNOR CLINTON OR OTHER POLITICIANS WHERE MR. LINDSEY AND THE TAX EXPERTS DISAGREE IS ON THE CRUCIAL QUESTION OF WHETHER THE CLINTONS WERE ENTITLED TO DEDUCT INTEREST PAYENTS ON WHITEWATER RELATED LOANS THAT WERE IN THEIR NAMES BUT BY ALL APPEARANCES HAD BEEN ASSUMED BY WHITEWATER IN AUGUST NINETEEN SEVENTY EIGHT THE CLINTONS AND THE MCDOUGALS BOUGHT TWO HUNDRED THIRTY ACRES ON THE WHITE RIVER FOR TWO HUNDRED THREE THOUSAND DOLLARS THEY FINANCED THE PURCHASE WITH A TWENTY THOUSAND DOLLAR DOWN PAYMENT FROM UNION NATIONAL BANK OF LITTLE ROCK AND A ONE HUNDRED EIGHTY THREE THOUSAND DOLLAR MORTGAGE FROM CITIZENS BANK OF FLIPPIN ARKANSAS THE FIRST LOAN WAS IN THE NAMES OF MESSRS CLINTON AND MCDOUGAL AND THE SECOND IN THE NAMES OF BOTH COUPLES IN JUNE NINETEEN SEVENTY NINE THEY FORMED WHITEWATER AND TRANSFERRED THE LAND TO THE CORPORATION FOUR YEARS LATER MR. CLINTON BORROWED TWENTY THOUSAND EIGHT HUNDRED DOLLARS FROM SECURITY BANK OF PARAGOULD ARKANSAS TO PAY OFF A HIGH INTEREST THIRTY THOUSAND DOLLAR NOTE THAT HIS WIFE HAD OBTAINED FROM A MCDOUGAL OWNED BANK TO PUT A MODEL HOME ON A LOT IN WHITEWATER ESTATES BOTH NOTES WERE CONSIDERED WHITEWATER LIABILITIES ACCORDING TO MR. LINDSEY THE NINETEEN SEVENTY NINE LAND TRANSFER WAS QUOTE SUBJECT TO THE EXISTING MORTGAGE QUOTE WHICH MEANS THAT THE CLINTONS COULD DEDUCT WHITEWATER INTEREST PAYMENTS ON THEIR PERSONAL TAX RETURNS BUT ONLY IF THEY ALSO LISTED AS INCOME WHATEVER INTEREST WHITEWATER PAID ON THE LOANS THE LOANS WERE DESIGNED IN A WAY THAT THE CLINTONS WOULD HAVE NO NET INCREASE OR DECREASE IN THEIR TAXABLE INCOME IF WHITEWATER WERE MAKING ITS PAYMENTS ON TIME ALL BUT ONE OF THE EXPERTS AGREE WITH MR. BANKLER THAT THE CLINTONS ERRED IN FAILING TO REPORT ANY INTEREST INCOME FROM WHITEWATER DURING THE YEARS THAT WHITEWATER WAS MAKING THE PAYMENTS ON THE NOTES THE JOURNAL'S ANALYSIS ASSUMES THAT ALL THE DEDUCTIONS LISTED ON THE CLINTON'S TAX RETURNS WERE ACCURATE HOWEVER MR. MCDOUGAL TOLD TIME THAT THE ONLY MONEY THE CLINTONS EVER CONTRIBUTED TO WHITEWATER WAS THIRTEEN THOUSAND THREE HUNDRED FIFTY DOLLARS IN INTEREST PAID IN NINETEEN EIGHTY THE WHITE HOUSE DENIES THIS ALLEGATION UNDER THE ORIGINAL FINANCIAL PLAN FOR WHITEWATER THE CLINTONS AND MCDOUGALS WERE TO BORROW MONEY FOR THE CORPORATION AND RELOAN IT TO WHITEWATER THE CORPORATION WAS TO PAY THEM BACK WITH INTEREST AND THEY IN TURN WERE TO PAY THE BANKS HAD THE PARTNERS ADHERED TO THE FORM OF THAT PLAN THE CLINTONS' TAX RETURNS WOULD SHOW INTEREST INCOME FROM WHITEWATER AND INTEREST EXPENSE PAID TO THE BANKS THE NET RESULT INCOME INTEREST WOULD CANCEL OUT INTEREST EXPENSE WHERE THE CLINTONS ERRED THE TAX EXPERTS CONCUR IS THEY NEVER FOLLOWED THE FORM OF THE WHITEWATER FINANCIAL PLAN INSTEAD WHITEWATER PAID THE BANKS DIRECTLY WITHOUT THE CLINTONS OR MCDOUGALS ACTING AS FINANCIAL INTERMEDIARIES FOR SEVERAL YEARS IN SO DOING UNDER CASE LAW WHITEWATER EFFECTIVELY ASSUMED THE LOANS AND ECLIPSED THE CLINTONS AS THE PRIMARY BORROWER ON THE LOANS THE CLINTONS EVEN THOUGH THEY WERE STILL GUARANTORS OF THE LOANS AND MADE SOME PAYMENTS COULDN'T CLAIM ANY DEDUCTIONS FOR INTEREST THAT THEY PAID FOR WHITEWATER ACCORDING TO THE EXPERTS IT'S LIKE A FATHER HELPING HIS SON ON HOME LOAN PAYMENTS FOR A COUPLE OF MONTHS SAYS MR. BANKLER JUST BECAUSE HE MAKES THE PAYMENTS HE CAN'T TAKE THE INTEREST DEDUCTION TO BUTTRESS HIS ARGUMENT MR. BANKLER CITES AN ENORMOUS BODY OF CASE LAW DATING FROM A NINETEEN THIRTY FIVE SUPREME COURT DECISION IN THE LANDMARK GREGORY VERSUS HELVERING CASE WHICH ASSERTS THAT THE SUBSTANCE OF TRANSACTIONS TAKES PRECEDENCE OVER THE FORM MR. LINDSEY CONTENDS THAT EVEN THOUGH QUOTE WHITEWATER MADE PAYMENTS TO BANKS IT DOESN'T CHANGE THE NATURE OF TRANSACTIONS QUOTE HE INSISTS THAT WHITEWATER DIDN'T ASSUME THE LOANS FROM THE CITIZENS UNION AND SECURITY BANKS THERE WAS NO ASSUMPTION HE SAYS THERE IS NO EVIDENCE THAT WHITEWATER WAS THE PRIMARY OBLIGATOR ON THOSE LOANS MR. LINDSEY ALSO DISMISSES THE ARGUMENT THAT THE FIRST COUPLE ERRED IN NOT FOLLOWING THE FORM OF THE WHITEWATER FINANCIAL SETUP MR. GALLAGHER THE PROFESSOR OF ACCOUNTANCY WHO SPECIALIZES IN TAXES AGREES WITH MR. BANKLER THAT THE CLINTONS WOULD FACE AN UPHILL FIGHT ARGUING AGAINST THE CUSTOMARY I. R. S. POSITION THAT SUBSTANCE CONTROLS FORM MR. GALLAGHER CITES THE AUTHORITATIVE TEXTBOOK FUNDAMENTALS OF CORPORATE TAXATION CASES AND MATERIALS AS SAYING THAT THE COURTS LONG HAVE BEEN WILLING TO SET ASIDE THE FORMAL DOCUMENTS SUCH AS MORTGAGES AND LEASES AND EVALUATE THE SUBSTANCE OF TRANSACTIONS THE COURTS ACCORDING TO THE TEXTBOOK ARE NOT INHIBITED FROM EXAMINING THE ARRANGEMENT AND RESTRUCTURING IT FOR TAX PURPOSES TO COMPORT WITH ECONOMIC REALITY FOR A DOZEN YEARS I HAVE OWNED AND OPERATED MINISTORAGES IN OUR SEMIRURAL AREA ACCORDINGLY I WAS MORE THAN ANGRY WHEN I READ THE ARTICLE QUOTE CHAMBERS OF HORRORS QUOTE ON JANUARY FIFTH THE ARTICLE DESCRIBED THE MANY THINGS LEFT IN SELF STORAGE LOCKERS INCLUDING THE BODIES OF MURDER VICTIMS THE THINGS YOU HAVE DISCUSSED HAPPEN IN ANY OCCUPIED BUILDING CONDO APARTMENT HOUSE GENERAL WAREHOUSE OR INDUSTRIAL BUILDING BECAUSE GACY BURIED BODIES IN HIS BACKYARD SHOULD WE ALLOW POLICE TO INSPECT EVERY RENTAL HOUSE ABSURD LIKEWISE FOR YOUR CONCLUSIONS WE STILL EXPECT ALL BUT A VERY SMALL MINORITY OF CITIZENS TO BE LAW ABIDING YOUR ARTICLE IMPLIES THE CONTRARY THAT ITSELF IS A SAD COMMENTARY ON YOUR VIEW OF OUR SOCIETY NOT JUST MINI STORAGES WITH TRADE TALKS IN A STALEMATE AND A DEADLINE LOOMING FRIDAY THE U. S. IS PRESSING JAPANESE CAR MAKERS IN THE U. S. TO ACCEPT DOMESTIC CONTENT RULES FAR TOUGHER THAN FOR ANY OTHER FOREIGN FIRMS JAPANESE NEGOTIATORS SAY THE U. S. WANTS SO CALLED JAPANESE TRANSPLANTS TO PRODUCE CARS THAT HAVE NINETY PERCENT OF THEIR PARTS MADE IN NORTH AMERICA U. S. OFFICIALS DON'T CONFIRM THAT NUMBER BUT ACKNOWLEDGE THEY WANT TOKYO TO ACCEPT LOCAL CONTENT QUOTAS SUBSTANTIALLY HIGHER THAN CALLED FOR IN THE NORTH AMERICAN FREE TRADE AGREEMENT UNDER THAT PACT CAR MAKERS LOCATED IN THE U. S. CANADA AND MEXICO MUST PRODUCE CARS WITH SIXTY TWO POINT FIVE PERCENT LOCALLY MADE PARTS WITHIN EIGHT YEARS TO QUALIFY FOR TARIFF FREE STATUS WITHIN NORTH AMERICA U. S. OFFICIALS SAID THEY FIGURED JAPANESE CAR MAKERS WOULD REACH THE NAFTA NUMBERS OUT OF SELF INTEREST BUT THE U. S. WANTS TO HOLD JAPANESE CAR MAKERS TO A HIGHER NUMBER TO ENSURE THAT VALUABLE PARTS OF THE CAR SUCH AS THE ENGINE OR TRANSMISSION ARE MADE IN NORTH AMERICA THE U. S. IS ASKING JAPANESE COMPANIES QUOTE TO MAKE GOOD ON WHAT THEY HAVE SAID PUBLICLY QUOTE COMMERCE UNDERSECRETARY JEFFREY GARTEN TOLD THE JAPAN SOCIETY FRIDAY QUOTE THAT THEY INTEND TO ACHIEVE SIGNIFICANTLY HIGHER LEVELS OF PARTS MADE IN THE UNITED STATES QUOTE MR. GARTEN DIDN'T NAME THE DOMESTIC CONTENT NUMBER THE U. S. SEEKS THE JAPANESE REJECT THE U. S. DEMAND AS UNFAIR AND CONTRARY TO INTERNATIONAL TRADE AGREEMENTS REQUIRING THAT FOREIGN COMPANIES BE TREATED THE SAME AS DOMESTIC ONES THE DISPUTE ALSO DEMONSTRATES HOW FAR APART THE TWO SIDES REMAIN ON THEIR FRAMEWORK TRADE TALKS PRIME MINISTER MORIHIRO HOSOKAWA IS TO ARRIVE IN WASHINGTON FRIDAY TO MEET PRESIDENT CLINTON AND SUPPOSEDLY WRAP UP A TRADE DEAL KOICHIRO MATSUURA JAPAN'S DEPUTY FOREIGN MINISTER SAID THE TALKS ARE AT AN IMPASSE OVER ONE OF THE MAIN ISSUES REFERRING TO THE U. S. DEMAND THAT JAPAN SET NUMERICAL TARGETS SUCH AS THE DOMESTIC CONTENT RULES MR. MATSUURA AND A TEAM OF JAPANESE OFFICIALS WILL RESUME TALKS WITH THEIR CLINTON ADMINISTRATION COUNTERPARTS IN WASHINGTON TODAY IN ADDITION TO THE DISAGREEMENT ON MICROECONOMIC ISSUES THE JAPANESE GOVERNMENT IS ALSO MOVING SLOWLY ON ANOTHER MAJOR U. S. DEMAND THAT TOKYO ENACT QUICK BOLD MACROECONOMIC MEASURES TO END ITS RECESSION WHICH IS DAMPING DEMAND FOR IMPORTS MR. HOSOKAWA HAD PLANNED TO ANNOUNCE AN INCOME TAX CUT AND A NEW PUBLIC WORKS SPENDING PACKAGE LAST WEEK BUT A BITTER FEUD WITHIN HIS COALITION GOVERNMENT OVER HOW TO PAY FOR THE STIMULUS FORCED HIM TO BACK OFF FROM HIS PLAN AND IT'S NOW UNCERTAIN WHEN THE PACKAGE WILL BE FINISHED MY HOPE IS THAT WHEN PRIME MINISTER HOSOKAWA GOES TO WASHINGTON HE WILL HAVE A NEW ECONOMIC PACKAGE IN PLACE MR. MATSUURA SAID IN AN INTERVIEW FRIDAY BUT HE ACKNOWLEDGED THAT THE UNEXPECTED ECONOMIC POLICY FRACAS WAS A SETBACK MANY OTHER STEPS WE INITIALLY ENVISAGED WE SHOULD TAKE BEFORE MR. HOSOKAWA LEAVES WILL BE AFFECTED MR. MATSUURA SAID DEFINITELY THERE IS A FURTHER DELAY IN ACTION IN MANY AREAS MR. CLINTON LAST WEEK DISPATCHED U. S. TRADE REPRESENTATIVE MICKEY KANTOR TO TOKYO TO TRY TO PUSH THE TALKS ALONG AFTER THREE DAYS OF MEETINGS WITH MR. HOSOKAWA AND OTHER TOP POLITICIANS HOWEVER MR. KANTOR APPEARS TO HAVE LEFT AFTER MAKING LITTLE PROGRESS AT A NEWS CONFERENCE FRIDAY THE MAIN ADVANCE MR. KANTOR COULD CITE WAS THAT THE PREMIER HAD QUOTE PERSONALLY DIRECTED HIS GOVERNMENT TO REDOUBLE THEIR EFFORTS TO REACH A SUCCESSFUL CONCLUSION QUOTE IN ADDITION FOREIGN MINISTER TSUTOMU HATA AGREED TO OVERSEE THE TALKS FOR THE JAPANESE SIDE THE U. S. HAS LONG COMPLAINED THAT TOP BUREAUCRATS HAVE STALLED THE TALKS THROUGH THEIR INTRANSIGENCE BUT MR. KANTOR AND HIS JAPANESE COUNTERPARTS DISAGREED EVEN ON WHAT THE TWO SIDES HAD AGREED TO LAST WEEK MR. KANTOR FOR EXAMPLE SAID MR. HATA NEITHER ACCEPTED NOR REJECTED THE U. S. DEMAND FOR NUMERICAL TARGETS DURING MEETINGS THAT IMPLIES THAT MR. HATA MAY BE MORE FLEXIBLE THAN THE BUREAUCRATS IN REACHING A TRADE DEAL BUT A SENIOR JAPANESE GOVERNMENT OFFICIAL INVOLVED WITH THE NEGOTIATIONS SAID IT'S NOT TRUE MR. HATA CLEARLY REFUSED NUMERICAL TARGETS THE OFFICIAL ADDED IN LESS CONTENTIOUS AREAS THOUGH THE TWO SIDES APPEAR TO HAVE MOVED AHEAD JAPAN'S NEGOTIATORS INDICATED THAT CHANGES WOULD BE MADE IN THE WAY THE JAPANESE BUY MEDICAL EQUIPMENT SO THAT FOREIGN COMPANIES HAVE A BETTER CHANCE TO WIN GOVERNMENT CONTRACTS SOME U. S. NEGOTIATORS BELIEVE THE JAPANESE STRATEGY IS TO MAKE ENOUGH CHANGES IN PROCEDURE THAT THE U. S. WILL DROP ITS INSISTENCE ON NUMERICAL TARGETS RATHER THAN FORGO THE JAPANESE CONCESSIONS SOME JAPANESE OFFICIALS SAID MR. KANTOR MAY ACTUALLY HAVE HURT THE TALKS BY TAKING A HOSTILE TONE AT MANY OF HIS MEETINGS DURING HIS VISIT MR. KANTOR MADE MANY NOT TOO SUBTLE HINTS THAT THE U. S. WOULD SLAP SANCTIONS ON JAPAN IF THE FRAMEWORK TALKS FELL THROUGH ON CAPITOL HILL MEANWHILE CALLS ARE MOUNTING FOR FURTHER PRESSURE ON THE JAPANESE IF THE FRAMEWORK TALKS FAIL THE GAP BETWEEN THE TWO SIDES WAS STARKLY APPARENT YESTERDAY WHEN HIROSHI KUMAGAI MINISTER FOR INTERNATIONAL TRADE AND INDUSTRY HELD AN UNUSUAL DEBATE WITH BOWMAN CUTTER A TOP U. S. NEGOTIATOR ON A JAPANESE SUNDAY MORNING TALK SHOW I WANT YOU TO UNDERSTAND CUTTER SAN THAT THE HOSOKAWA GOVERNMENT'S POLICY IS TO PROMOTE DRASTIC DEREGULATION MR. KUMAGAI SAID COMPLAINING THAT U. S. DEMANDS FOR JAPAN TO SET IMPORT TARGETS WOULD ACTUALLY BOOST GOVERNMENT INVOLVEMENT IN THE PRIVATE SECTOR WE CAN'T DO THINGS COUNTER TO THAT CRAIG FORMAN CONTRIBUTED TO THIS ARTICLE NOBODY SHOULD BE SURPRISED BY THE AMBIVALENCE WITH WHICH AMERICANS CONTEMPLATE THE CLINTON ADMINISTRATION'S DECISION TO LIFT THE TRADE EMBARGO WITH VIETNAM THE WAR HAS COME TO BE VIEWED AS AN OUTRIGHT U. S. DEFEAT AT LEAST IN THE SENSE THAT IT FAILED TO SPARE SOUTH VIETNAM THE RIGORS OF A COMMUNIST TAKEOVER AMONG SOPHISTICATES IT'S BEEN THE FASHION FOR SOME WHILE TO POKE FUN AT THE QUOTE DOMINO THEORY QUOTE THE NOTION THAT A COMMUNIST WALKOVER IN VIETNAM COULD HAVE PROVOKED SUCCESSIVE ATTACKS ON THAILAND MALAYSIA AND THE REST OF SOUTHEAST ASIA THE SAME SCHOOL EXPLAINS AWAY THE BLOODY TRIUMPH OF COMMUNISM IN CAMBODIA BY BLAMING IT ON THE AMERICANS INDEED THERE'S STILL A BODY OF OPINION THAT BELIEVES THAT THE AMERICAN INVOLVEMENT IN VIETNAM WAS AN EVIL ENTERPRISE FROM THE BEGINNING WE FAVOR THE LIFTING OF THE EMBARGO BUT NOT AS A WAY TO BURY THE PAST OR THE AMERICA THAT FOUGHT IN VIETNAM THE WAR WAS WAGED NOT WISELY BUT FOR HONORABLE PURPOSES IN MOVING TO A NEW PHASE OF U. S. VIETNAMESE RELATIONS WE HOPE THAT AMERICA'S POLICY MAKERS WILL CONTINUE TO DO WHAT THEY REASONABLY CAN TO ADVANCE THE CAUSE OF FREEDOM FOR THE PEOPLE OF VIETNAM AND ASIA GENERALLY FOR IN THIS PART OF THE WORLD THE WAR'S LEGACY LOOKS RATHER DIFFERENT IT WAS WIDELY UNDERSTOOD IN THOSE DAYS THAT ASIA'S FUTURE WAS INDEED UP FOR GRABS YOUNG NATIONS WERE JUST FINDING THEIR SEA LEGS AND LEFTIST IDEOLOGUES SAW A RIPE OPPORTUNITY TO COMMANDEER THESE UNSTEADY SOCIETIES AND MARCH THEM OFF AT GUNPOINT WITH MOSCOW AND BEIJING SUPPLYING THE GUNS TO THE LABORATORY FOR BIZARRE SOCIAL EXPERIMENTS IN THAT RESPECT AMERICA'S STAUNCHNESS LAID THE FOUNDATION FOR THE REGION'S PROSPERITY TODAY THIS DOES NOT NEED MUCH EXPLAINING TO ASIA'S PEOPLE THOUGH PERHAPS TO AMERICANS WHATEVER THEIR RELEVANCE TO THE CHALLENGES OF THE NEXT CENTURY THE REMARKABLE STAYING POWER OF LEADERS SUCH AS LEE KUAN YEW IN SINGAPORE SUHARTO IN INDONESIA AND EVEN FERDINAND MARCOS IN THE PHILIPPINES BEARS TESTIMONY TO THE FEARS AND HUNGER FOR STABILITY DERIVED FROM SO MANY YEARS OF LIVING DANGEROUSLY THE SAME CONCERNS GAVE BIRTH TO REGIONAL BODIES LIKE SEATO AND ASEAN BOTH FOUNDED WITH THE SPECIFIC AIM OF RESISTING COMMUNISM AND OF COURSE THE U. S. NAVY IS STILL A WELCOME AND COMFORTING PRESENCE THOUGH ASIAN POLITICIANS TRY NOT TO ADMIT IT TOO LOUDLY THE QUESTION REMAINS WHAT TO DO ABOUT VIETNAM BY ALL MEANS LET THERE BE MUTUALLY SATISFYING TRADE BETWEEN THE U. S. AND VIETNAM ECONOMICALLY AMERICAN BUSINESSES CAN JUDGE THEIR OWN RISKS POLITICALLY AS WITH CHINA TRADE WITH THE WEST CAN ONLY BE SUBVERSIVE OF THE ESTABLISHED ORDER IT IS BOUND TO SPREAD KNOWLEDGE OF THE OUTSIDE WORLD IT PRODUCES PROSPERITY SOMETHING COMMUNISM HAS NOT AND HELPS TO REAWAKEN AMONG OPPRESSED PEOPLE THE HABITS OF INDEPENDENT THOUGHT AND PERSONAL INITIATIVE OVER TIME HISTORY SUGGESTS ECONOMIC GROWTH RESULTS IN GREATER RESPECT FOR HUMAN RIGHTS AND DEMOCRACY TO BE EFFECTIVE THOUGH THESE PURPOSES NEED TO BE KEPT IN MIND IN PARTICULAR TRADE NEED NOT BE ACCOMPANIED BY DIPLOMATIC HYPOCRISY AND THE FULL PANOPLY OF GOVERNMENT TO GOVERNMENT PAYOLA THE KIND OF LARGESSE ROUTINELY DISHED OUT BY U. S. AID THE EXPORT IMPORT BANK AND THE MULTILATERAL LENDERS WOULD JUST FLOW INTO THE COFFERS OF THE HANOI REGIME AS INDEED IT ALREADY HAS THIS IS DUBIOUS ENOUGH AS AN ECONOMIC PROPOSITION AS POLITICS IT'S WORSE THE FLOW OF MONEY AND CREDIT MERELY BECOMES FUEL FOR THE SORT OF CORRUPTION AND FAVOR DISPENSING THAT ALLOWS COMMUNIST REGIMES TO RETAIN THEIR GRIP ON LIFE LONG AFTER EVEN THEIR OWN CADRES HAVE ABANDONED BELIEF IN ANYTHING BUT KEEPING THEMSELVES IN POWER SIMILARLY THE U. S. AND THE REST OF THE WORLD'S DEMOCRACIES SHOULD NOT DEPICT TRADE AS A STAMP OF APPROVAL FOR DESPOTIC REGIMES IN LIFTING THE EMBARGO INDEED PRESIDENT BILL CLINTON HAS OFFERED THE WORST OF ALL POSSIBLE REASONS HE SAYS HE'S MOTIVATED ENTIRELY BY CONCERN FOR RESOLVING THE FATE OF MISSING SERVICEMEN AND THAT ON THIS ISSUE HANOI HAS TURNED MORE REASONABLE HE RUNS AN ENORMOUS RISK THAT HISTORY WILL PROVE THIS A DELUSION IF NOT A LIE NOT EVEN JANE FONDA CAN STILL HARBOR ILLUSIONS ABOUT THE MORAL QUALITIES OF THE CLIQUE IN HANOI NOT AFTER HUNDREDS OF THOUSANDS OF VIETNAM'S OWN PEOPLE RISKED HORRIFYING DEATHS AT SEA TO ESCAPE ITS TYRANNICAL RULE THE HANOI REGIME MUST KNOW A GREAT DEAL ABOUT THE MISSING SERVICEMEN BUT HAS DISHED OUT INFORMATION IN A CYNICAL BARGAINING GAME NO DOUBT PATTING ITSELF ON THE BACK FOR EXPLOITING WHAT MUST BE REGARDED AS WESTERN SENTIMENTALITY THESE ARE THE SAME VIETNAMESE LEADERS WHO CALCULATEDLY SET UP THEIR OWN VIET CONG ALLIES IN THE SOUTH TO BE DECIMATED IN THE TET OFFENSIVE THUS DISPENSING WITH COLLEAGUES WHO MIGHT BE AN INCONVENIENCE AFTER VICTORY THE WESTERN MEDIA NATURALLY TOOK THE VIET CONG SACRIFICE AS A MEASURE OF THE COMMUNISTS' MORAL COMMITMENT BUT YOU DON'T EXACTLY HAVE TO RANSACK THE ARCHIVES TO FIND THAT THE NORTH VIETNAMESE TOOK A MORE CYNICAL VIEW SO WHILE IT SEEMS HIGHLY UNLIKELY THAT U. S. SOLDIERS AND AIRMEN ARE STILL BEING HELD THERE'S STILL A WORLD OF MYSTERY EMBODIED IN THE PHRASE DIED IN CAPTIVITY AMERICA MAY HAVE BEEN ON THE WAR'S LOSING SIDE BUT IT REMAINED THE RICHEST MOST POWERFUL NATION IN THE WORLD CERTAINLY IT'S POSSIBLE THAT SOME OF ITS P. O. W.S LEARNED OR SUFFERED THINGS WHILE IN COMMUNIST HANDS THAT HANOI WOULD PREFER THAT THE AMERICAN PEOPLE AND GOVERNMENT NEVER FIND OUT ABOUT DOES ANYBODY DOUBT THAT THE NORTH VIETNAMESE COMMUNISTS WERE CAPABLE OF STAGING THE MURDER OF TROUBLESOME PRISONERS THERE ALSO REMAINS THE UNANSWERED QUESTION OF WHETHER SOME PRISONERS WERE SHIPPED TO THE SOVIET UNION AND WHAT UNPLEASANT FATE OVERTOOK THEM THERE WHILE SOME OF OUR MOST HEROIC FORMER PRISONERS DISMISS THESE CONCERNS THEY ARE BY NO MEANS THE PROVINCE MERELY OF DISTRAUGHT FAMILIES CON MEN AND KOOKS GEORGE A. CARVER JUNIOR THE C. I. A. ANALYST WHOSE ESTIMATES WERE REPEATEDLY VINDICATED DURING THE WAR HAS SPELLED OUT HIS SUSPICIONS ON THESE PAGES THE P. O. W. DRAMA MAY TWENTIETH NINETEEN NINETY THREE AND FORMER NATIONAL SECURITY ADVISER ZBIGNIEW BRZEZINSKI HAS RAISED THE POSSIBILITY OF A KATYN MASSACRE OF RETAINED PRISONERS FOR THOSE WITH A TASTE FOR DETAIL JOHN CORRY HAS A LONG REPORT IN THE NEW AMERICAN SPECTATOR PRESIDENT CLINTON SHOWED WHAT WE HOPE WAS SINCERE SENSITIVITY TO THE CONCERNS OF THE M. I. A. P. O. W. FAMILIES IN THE WAY HE ANNOUNCED THE EMBARGO REPEAL DESPITE THIS HANOI WILL DO ALL THAT IT CAN TO BILL HIS INITIATIVE AS A BADGE OF RESPECTABILITY PRINCIPLE HAS NOT ALWAYS BEEN APPARENT IN CLINTON FOREIGN POLICY BY WELCOMING A PROPAGANDIST FOR THE IRISH REPUBLICAN ARMY HE HAS ANTAGONIZED GOOD BRITISH FRIENDS IN ORDER TO THROW A SOP TO THE IRISH LOBBY IN THE U. S. SENATE HIS EMBRACE OF BORIS YELTSIN HAS LATELY COME AT THE EXPENSE OF THE NEWLY INDEPENDENT EX SOVIET SUBJECT NATIONS WHICH NOW WONDER IF WASHINGTON PLANS TO ACQUIESCE IN THE RESURRECTION OF THE U. S. S. R. ON VIETNAM AGAIN THE PROBLEM IS NOT SO MUCH WHAT MR. CLINTON DID AS THE WAY HE TRIED TO EXPLAIN IT HIS OWN RELATIONSHIP TO THIS COMPLEX LEGACY REMAINS AMBIGUOUS TO PUT IT CHARITABLY NO DOUBT HE WANTS TO PUT VIETNAM BEHIND US AND HIM BUT IT WOULD BE REASSURING IF HE COULD RECOGNIZE THAT AMERICA FOUGHT THE WAR PARTLY TO SECURE THE FREEDOM AND HOPES FOR PROSPERITY OF THE VIETNAMESE PEOPLE AND THAT WHILE THE U. S. DID NOT ACHIEVE THIS GOAL IT HASN'T FORGOTTEN IT HONORING THE SACRIFICE OF THOSE WHO FOUGHT IN VIETNAM DOES NOT REQUIRE A PERPETUAL SELF DEFEATING EMBARGO BUT IT DOES REQUIRE TRYING TO DEVELOP RELATIONS IN WAYS THAT BRING CLOSER THE FREEDOM THAT THE VIETNAMESE MIGHT ALREADY ENJOY IF THE WAR HAD ENDED DIFFERENTLY NOVA T. V. THE FIRST COMMERCIAL NETWORK IN EASTERN EUROPE BEGAN BROADCASTING IN THE CZECH REPUBLIC ENDING FOUR DECADES OF STATE DOMINATED TELEVISION WHILE PRIVATE BROADCASTERS OPERATE IN SOME FORMER COMMUNIST STATES IN THE REGION INCLUDING POLAND AND ROMANIA NOVA IS THE FIRST TO WIN GOVERNMENT HELD RIGHTS TO A NATIONWIDE FREQUENCY MOST OF THE FORTY FIVE MILLION DOLLARS IN CAPITAL FOR NOVA A UNIT OF CET TWENTY ONE WITH FIVE OWNERS CAME FROM CENTRAL EUROPEAN DEVELOPMENT CORPORATION RUN BY A FORMER U. S. ENVOY TO HUNGARY MARK PALMER THE STATION CHALLENGING STATE SUBSIDIZED CZECH TELEVISION OFFERS A MIX OF CZECH PUBLIC AFFAIRS SHOWS AND WESTERN ENTERTAINMENT A NOVA TALK SHOW QUOTE CIVIC JUDO QUOTE JOINS THE PUBLIC AND JOURNALISTS IN QUESTIONING GOVERNMENT FIGURES STILL AN UNFAMILIAR SCENARIO FOR MANY CZECHS FOUR YEARS AFTER HARD LINE RULE COLLAPSED NOVA LAUNCHED ITS PRIME TIME WITH ELEMENTARY SCHOOL A NINETEEN NINETY TWO OSCAR NOMINATED CZECH HIT AND GHOSTBUSTERS STATE T. V. COUNTERED WITH THE GODFATHER FORBIDDEN UNDER COMMUNIST RULE BRITISH COAL PLANS TO CLOSE FOUR MORE MINES WITH THREE THOUSAND TOTAL EMPLOYEES FINANCIAL LOSSES AT EACH OF THESE COLLERIES ONE IN NORTHUMBERLAND THREE IN NOTTINGHAMSHIRE HAVE GROWN TO AS MUCH AS ONE POINT FIVE MILLION DOLLARS A MONTH BECAUSE OF DECLINING DEMAND FOR COAL THE CLOSURES WOULD LEAVE BRITISH COAL WITH SIXTEEN OPERATING PITS BRITISH COAL HAS CLOSED MORE THAN THIRTY MINES OVER THE PAST YEAR IN EFFORTS TO MAKE THE STATE OWNED INDUSTRY MORE EFFICIENT AND PREPARE IT FOR PRIVATIZATION IN EARLY NINETEEN NINETY FIVE THE CZECH REPUBLIC HUNGARY POLAND AND SLOVAKIA AGREED TO FORM THE CENTRAL EUROPEAN FREE TRADE ZONE BY NINETEEN NINETY SEVEN THREE YEARS EARLIER THAN PLANNED IN NINETEEN NINETY TWO THEY SIGNED AN ACCORD TO CREATE THE ZONE WITHIN EIGHT YEARS THE FOUR NATIONS WITH A MARKET OF SIXTY FIVE MILLION PEOPLE ARE AMONG THE MOST ECONOMICALLY ADVANCED OF THE FORMER SOVIET SATELLITES CREATION OF THE TRADE ZONE ALSO IS VIEWED AS A PRELIMINARY STEP TO APPLY TO JOIN THE EUROPEAN UNION OF WESTERN INDUSTRIALIZED COUNTRIES SWEDISH OPPOSITION TO MEMBERSHIP IN THE EUROPEAN UNION IS DECREASING A SURVEY PUBLISHED IN THE DAGENS INDUSTRI BUSINESS DAILY FOUND SWEDEN'S APPLICATION WAS FAVORED BY THIRTY NINE PERCENT OF THE RESPONDENTS AND OPPOSED BY THIRTY PERCENT WHILE THIRTY ONE PERCENT WERE UNCERTAIN IN A COMING REFERENDUM ON E. U. MEMBERSHIP FIFTY THREE PERCENT PLAN TO VOTE AGAINST IT AND FORTY SEVEN PERCENT FOR JOINING THIS GAP OF SIX PERCENTAGE POINTS SHRANK FROM TWENTY THREE POINTS IN A POLL TWO MONTHS AGO AND TWENTY FIVE POINTS IN SEPTEMBER AS ANOTHER ROUND OF TALKS ENDED REPRESENTATIVES OF CHINA AND TAIWAN CITED PROGRESS IN NARROWING DIFFERENCES IN THE BEIJING TALKS THE TWO SIDES ESSENTIALLY AGREED ON REPATRIATING AIRPLANE HIJACKERS RETURNING ILLEGAL IMMIGRANTS AND RESOLVING FISHING DISPUTES BUT SAID DETAILS REMAINED UNSETTLED THE MEETING AMOUNTED TO THE HIGHEST LEVEL CONTACT SINCE TWO SEMIOFFICIAL GROUPS HELD A GROUND BREAKING SUMMIT LAST APRIL TAIWAN HAS BANNED OFFICIAL CONTACT WITH CHINA SINCE NINETEEN FORTY NINE THOUGH IT EASED UP FOR CIVILIAN LINKS AND INDIRECT ECONOMIC TIES IN THE LATE NINETEEN EIGHTIES THE EUROPEAN UNION'S AVERAGE UNEMPLOYMENT IN NINETEEN NINETY THREE ROSE TO A PRELIMINARY RATE OF TEN POINT FIVE PERCENT FROM NINE POINT NINE PERCENT IN NINETEEN NINETY TWO EUROSTAT THE TWELVE COUNTRY BLOC'S STATISTICS AGENCY ESTIMATED THE NUMBER OF JOBLESS PEOPLE TOTALED FIFTEEN POINT EIGHT MILLION AN INCREASE OF ONE POINT NINE MILLION UNEMPLOYMENT INCREASED ACROSS THE BOARD LED BY SPAIN WHERE IT WAS UP SIX HUNDRED FIFTY NINE THOUSAND OR TWENTY FOUR PERCENT TO THREE POINT FIVE MILLION WESTERN GERMANY UP THREE HUNDRED FIFTY FIVE THOUSAND OR TWENTY SIX PERCENT TO ONE POINT SEVEN THREE MILLION ITALY UP TWO HUNDRED THIRTY FIVE THOUSAND OR NINE POINT FIVE PERCENT TO TWO POINT SEVEN MILLION AND FRANCE UP TWO HUNDRED TEN THOUSAND OR EIGHT POINT FIVE PERCENT TO TWO POINT SEVEN MILLION THE SMALLEST INCREASES WERE IN BRITAIN UP ONE HUNDRED TWO THOUSAND OR THREE PERCENT TO THREE POINT ONE MILLION AND IRELAND UP NINE THOUSAND ALSO THREE PERCENT TO TWO HUNDRED FIFTY FIVE THOUSAND A PUBLIC INTEREST LOBBY IN THE EUROPEAN UNION IS CAMPAIGNING FOR RESIDENTS TO REFUSE TO SHOW THEIR PASSPORTS WHEN TRAVELING FROM ONE MEMBER STATE TO ANOTHER EURO CITIZEN ACTION SERVICE SAID THIS WOULDN'T AMOUNT TO CIVIL DISOBEDIENCE RATHER IT BLAMED THE E. U. COUNTRIES THAT FAILED TO HONOR THEIR PLEDGE TO ELIMINATE BORDER CONTROLS THE CALL TO WITHHOLD PASSPORTS FOLLOWED THE FOURTH DELAY UNDER A PACT TO ABOLISH CONTROLS AT INTERNAL BORDERS OF NINE OF THE TWELVE E. U. STATES LAST WEEK WHEN THE LATEST DEADLINE WAS MISSED THE CITIZENS LOBBY REOPENED A BRUSSELS HOTLINE AND FIELDED MORE THAN ONE HUNDRED CALLS IN TWELVE HOURS FROM E. U. RESIDENTS SOME OF THE BIGGEST GRIPES CAME FROM NON E. U. NATIONALS WHO RESIDE LEGALLY IN AN E. U. MEMBER STATE THE AFGHAN BORN WIFE OF A GERMAN CITIZEN COMPLAINED ABOUT HAVING TO GO TO STUTTGART TO GET A VISA TO VISIT STRASBOURG EVEN THOUGH THE COUPLE LIVES JUST A HALF HOUR AWAY FROM THE FRENCH CITY JAPAN LAUNCHED ITS H. THE SECOND ROCKET THE FIRST WITH ALL DOMESTIC TECHNOLOGY PUTTING AN UNMANNED PROTOTYPE SHUTTLE AND A SATELLITE INTO ORBIT THE EUROPEAN UNION SET MINIMUM PRICES ON WHITE FISH AND SALMON IMPORTS THROUGH MARCH FIFTEENTH AT FRANCE'S REQUEST TO PROTECT FISHERMEN WHO HAVE PROTESTED LOW PRICED SUPPLIES FROM ABROAD THE BIBLE OR PARTS OF IT HAVE BEEN TRANSLATED INTO TWO THOUSAND SIXTY TWO OF THE WORLD'S ESTIMATED SIX THOUSAND LANGUAGES WITH FORTY FOUR LANGUAGES ADDED TO THE LIST LAST YEAR THE UNITED BIBLE SOCIETIES IN LONDON SAID MOBIL CORPORATION SAID IT WILL INCREASE ITS NINETEEN NINETY FOUR CAPITAL AND EXPLORATION BUDGET BY SEVENTEEN PERCENT TO FOUR POINT TWO BILLION DOLLARS FROM LAST YEAR'S THREE POINT SIX BILLION DOLLARS MOBIL'S CHAIRMAN ALLEN E. MURRAY SAID THE INCREASE QUOTE REFLECTS A STRONG BALANCE SHEET AND CONTINUED OPTIMISM ABOUT ATTRACTIVE OPPORTUNITIES FOR GROWTH QUOTE HE ADDED THAT THE FAIRFAX VIRGINIA OIL CONCERN WILL STAY FLEXIBLE AND THE BUDGET CAN BE REVISED IF THE BUSINESS ENVIRONMENT WARRANTS CHANGES DURING THE YEAR MR. MURRAY SAID SIXTY FIVE PERCENT OF THE SPENDING WILL BE FOCUSED IN THE INTERNATIONAL AREA ABOUT THE SAME RATE AS LAST YEAR SPENDING IN NINETEEN NINETY THREE WAS DOWN FROM NINETEEN NINETY TWO'S FOUR POINT FIVE BILLION DOLLARS BECAUSE OF THE TIMING OF SOME EXPENDITURES AND A SOMEWHAT SMALLER CAPITAL APPROPRIATIONS BUDGET SPENDING FOR EXPLORATION AND PRODUCING WILL RISE TO TWO POINT SIX BILLION DOLLARS FROM TWO BILLION DOLLARS IN MARKETING AND REFINING THE BUDGET WILL STAY THE SAME AT ONE POINT TWO BILLION DOLLARS AND SPENDING AT THE CHEMICAL DIVISION WILL REMAIN AT THREE HUNDRED MILLION DOLLARS IN ADDITION TO THE CAPITAL AND SPENDING PROJECTED FOR THIS YEAR MOBIL SAID ITS CASH INVESTMENTS IN EQUITY COMPANIES WILL BE ABOUT TWO HUNDRED MILLION DOLLARS DOUBLE LAST YEAR'S LEVEL STORAGE TECHNOLOGY CORPORATION IS EXPECTED TO SHOW ITS LONG DELAYED ICEBERG DATA STORAGE LINE AT A MEETING WITH SECURITIES ANALYSTS ON THURSDAY COMMON SHARES OF THE LOUISVILLE COLORADO MAKER OF TAPE AND DISK STORAGE SYSTEMS GAINED LAST WEEK RISING ONE POINT EIGHT SEVEN FIVE DOLLARS TO CLOSE AT THIRTY SIX DOLLARS AND TWENTY FIVE CENTS IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY A SPOKESMAN SAID FIFTEEN ICEBERG UNITS HAVE BEEN SENT TO CUSTOMERS INCLUDING BOTH TEST AND PRODUCTION UNITS HE WOULDN'T PREDICT WHEN VOLUME SHIPMENTS OF ICEBERG UNITS WOULD BEGIN BUT SAID THE COMPANY PLANS TO BRING OUT FOUR NEW DISK STORAGE PRODUCTS FOR MAINFRAME COMPUTERS THIS YEAR HE ALSO SAID STORAGE TECHNOLOGY WOULD INCREASE ITS WORK FORCE BY ABOUT ONE THOUSAND PEOPLE OR TEN PERCENT TO SUPPORT THE EFFORT ICEBERG IS DESIGNED TO BE FAULT TOLERANT TO CONTINUE WORKING EVEN IF A PART FAILS AND USES A DESIGN APPROACH IN WHICH MANY SMALLER DISKS WORK TOGETHER AS A SINGLE SYSTEM IT WAS ANNOUNCED TWO YEARS AGO BUT HAS BEEN DELAYED REPEATEDLY BY SOFTWARE RELATED PROBLEMS ELECTROCOM AUTOMATION INCORPORATED ARLINGTON TEXAS SAID IT EXPECTS TO REPORT FOURTH QUARTER EARNINGS WERE BETWEEN THIRTY FOUR CENTS AND THIRTY EIGHT CENTS A SHARE G. D. QUOTE DAN QUOTE THOMPSON PRESIDENT AND CHIEF EXECUTIVE SAID THE COMPANY HAD EARNINGS OF SIX POINT EIGHT MILLION DOLLARS OR TWENTY FIVE CENTS A SHARE ON SALES OF EIGHTY EIGHT POINT EIGHT MILLION DOLLARS A YEAR EARLIER SALES TOTALED ONE HUNDRED NINETEEN MILLION DOLLARS TO ONE HUNDRED TWENTY NINE MILLION DOLLARS IN THE LATEST QUARTER THE NINETEEN NINETY THREE FOURTH QUARTER RESULTS WERE WITHIN ANALYSTS' FORECASTS OF THIRTY FIVE CENTS TO FORTY CENTS A SHARE THE COMPANY SAID FOR THE YEAR THE MAKER OF AUTOMATED DOCUMENT PROCESSORS AND PACKAGE SORTERS EXPECTS TO REPORT PER SHARE EARNINGS OF ONE DOLLAR AND FOUR CENTS TO ONE DOLLAR AND EIGHT CENTS ON SALES OF FOUR HUNDRED FIVE MILLION DOLLARS TO FOUR HUNDRED FIFTEEN MILLION DOLLARS THE COMPANY HAD PROFIT OF TWENTY SEVEN POINT SEVEN MILLION DOLLARS OR ONE DOLLAR AND TWO CENTS A SHARE ON SALES OF FOUR HUNDRED SIXTY NINE POINT EIGHT MILLION DOLLARS A YEAR EARLIER MR. THOMPSON REPEATED THE COMPANY'S PREDICTION THAT ITS RESULTS IN NINETEEN NINETY FOUR WILL RESEMBLE NINETEEN NINETY THREE'S NUMBERS THE SOCIALIST GOVERNMENT HAS TURNED UP THE HEAT AND ORDERED A CRIMINAL INVESTIGATION INTO THE NINETEEN NINETY TWO SALE OF GREEK CEMENT MAKER AGET HERACLES S. A. TO A CONSORTIUM LED BY A SUBSIDIARY OF ITALY'S FERRUZZI COMPANY SOCIALIST JUSTICE MINISTER GEORGE KOUVELAKIS HAS REQUESTED THAT THE INVESTIGATION BE OPENED AMID ALLEGATIONS OF POSSIBLE FRAUD AND BRIBERY INVOLVING THE SALE OF THE COMPANY FOR TWO HUNDRED TWENTY FIVE MILLION DOLLARS TO A CONSORTIUM FORMED BY ITALY'S CONSTRUCTION GIANT CALCESTRUZZI COMPANY AND THE GREEK NATIONAL BANK AT THE TIME OF THE SALE THE THEN CONSERVATIVE GOVERNMENT HAILED THE TRANSACTION AS THE NATION'S BIGGEST PRIVATIZATION SUCCESS STORY BUT MORE THAN A YEAR AGO PARLIAMENT BEGAN TO TAKE A CLOSER LOOK AT THE DEAL AMID ALLEGATIONS OF BRIBES AND BID RIGGING AS WELL AS OPPOSITION CLAIMS THAT CONSERVATIVE PRIME MINISTER CONSTANTINE MITSOTAKIS HAD SOLD HERACLES AT A VERY LOW PRICE THAT PROBE WAS DROPPED WHEN PARLIAMENT WAS DISSOLVED MR. MITSOTAKIS HAS REPEATEDLY DENIED ANY WRONGDOING AND SAID THE PRICE THAT WAS SETTLED ON WAS HIGHER THAN OTHER OFFERS THE SOCIALISTS WHO REGAINED POWER IN OCTOBER HAVE SAID THEY PLAN TO RENATIONALIZE THE COMPANY BUT SO FAR HAVEN'T GIVEN ANY DETAILS ABOUT HOW OR WHEN THEY PLAN TO DO SO MEANWHILE CALCESTRUZZI AND ITS PARENT COMPANY FERRUZZI HAVE BEEN ENTANGLED IN ITALY'S WIDESPREAD CORRUPTION SCANDALS INVOLVING LARGE KICKBACKS PAID TO POLITICAL PARTIES IN ADDITION ITALIAN MAGISTRATES ARE LOOKING INTO THE HERACLES SALE TO DETERMINE WHETHER POLITICAL FIGURES WERE BRIBED AUTHORITIES IN ATHENS EXPECT THAT THEIR CRIMINAL PROBE WILL BE AIDED BY THE ITALIAN INVESTIGATION MR. KOUVELAKIS SAID THE GREEK GOVERNMENT HAD NO CHOICE BUT TO ORDER ITS INVESTIGATION AS NEW ALLEGATIONS OVER THE SALE COME TO LIGHT EVERY DAY THE JUSTICE MINISTER SAID NIKOS GEORGIADES HERACLES'S PRESIDENT BEFORE THE COMPANY WAS SOLD ADMITTED TO COURT AUTHORITIES THAT HE WAS PAID A COMMISSION OF TWELVE MILLION DOLLARS TO ACT AS A MIDDLEMAN IN THE SALE QUOTE IT IS A VERY LARGE COMMISSION PAYMENT AND WE HAVE TO INVESTIGATE WHETHER THIS MONEY WAS USED FOR BRIBES QUOTE MR. KOUVELAKIS SAID MR. GEORGIADES COULDN'T BE REACHED FOR COMMENT IF ANY EVIDENCE INVOLVING POLITICAL FIGURES ARISES IN THE CRIMINAL INVESTIGATION THE CASE WILL GO BACK TO PARLIAMENT WHICH CAN LAUNCH ITS OWN PROBE AND PROSECUTE DEPUTIES AND FORMER MINISTERS FORMER CONSERVATIVE ECONOMY MINISTERS STEPHANOS MANOS AND EFTHYMIOS CHRISTODOULOU AS WELL AS MR. MITSOTAKIS WERE ALL INVOLVED IN THE SALE AT ONE STAGE OR ANOTHER MR. MANOS AND MR. CHRISTODOULOU HAVE ALSO DENIED ANY WRONGDOING ONE OF THOSE INVOLVED WITH THE SALE FORMER NATIONAL BANK GOVERNOR MIHALIS VRANOPOULOS WAS SHOT AND KILLED IN ATHENS LAST MONTH THE EXTREME LEFTIST GUERILLA GROUP NOVEMBER SEVENTEENTH CLAIMED RESPONSIBILITY FOR THE MURDER BLAMING MR. VRANOPOULOS FOR BEING ONE OF THE KEY FIGURES IN THE SCANDAL SINCE LOSING POWER IN OCTOBER MR. MITSOTAKIS HAS BEEN THE TARGET OF A SERIES OF ALLEGATIONS BY THE SOCIALIST GOVERNMENT A TWENTY MEMBER PARLIAMENTARY COMMITTEE WAS FORMED LAST WEEK TO INVESTIGATE HIS ALLEGED INVOLVEMENT IN ILLEGAL WIRETAPPING WHILE A PUBLIC PROSECUTOR IS INVESTIGATING HIS PRIVATE ANTIQUITIES COLLECTION TO DETERMINE ITS ORIGIN CITFED BANCORP INCORPORATED DAYTON OHIO EXPECTS THAT STRONG HOME BUILDING ALONG WITH HIGHER FEE REVENUE FROM GROWING CONSUMER BANKING AND MORTGAGE BANKING BUSINESSES WILL CONTRIBUTE TO SHARPLY HIGHER EARNINGS FOR ITS FOURTH QUARTER ENDING MARCH THIRTY FIRST THE FINANCIAL SERVICES CONCERN'S MANAGEMENT DOESN'T QUARREL WITH ANALYSTS' FORECASTS OF A RISE OF ABOUT TWENTY PERCENT IN FISCAL FOURTH QUARTER EARNINGS SAID JERRY L. KIRBY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER IN FISCAL NINETEEN NINETY THREE CITFED EARNED EIGHT POINT SIX MILLION DOLLARS OR TWO DOLLARS AND THREE CENTS A SHARE ANALYSTS PROJECT EARNINGS OF TWO DOLLARS AND FIFTY CENTS A SHARE FOR THE CURRENT FISCAL YEAR THAT ESTIMATE INDICATES FOURTH QUARTER NET OF SIXTY THREE CENTS A SHARE COMPARED WITH FIFTY TWO CENTS A YEAR EARLIER EARNINGS WILL REFLECT HIGHER FEE REVENUE FROM MORTGAGE BANKING TRUST ACCOUNTS AND CHECKING ACCOUNTS OFFICIALS SAID IN ADDITION LOAN LOSS PROVISIONS WILL DROP TO BETWEEN SIX HUNDRED THOUSAND DOLLARS AND SEVEN HUNDRED FIFTY THOUSAND DOLLARS FROM TWO POINT SEVEN MILLION DOLLARS A YEAR EARLIER THEY SAID CITFED'S LARGEST UNIT IS CITIZENS FEDERAL BANK A SAVINGS BANK WITH ASSETS OF ONE POINT EIGHT THREE BILLION DOLLARS AS OF DECEMBER THIRTY FIRST PAXAR CORPORATION SAID IT FORMED AN ALLIANCE WITH SENSORMATIC ELECTRONICS CORPORATION TO APPLY ANTI THEFT LABELS AND TAGS TO APPAREL AND OTHER SOFT GOODS BEFORE THEY LEAVE THE MANUFACTURING PLANT BY SEWING THE ANTI THEFT LABELS INTO MERCHANDISE RETAILERS CAN SAVE TIME AND LABOR COSTS OF ATTACHING THE TAGS TO MERCHANDISE AT STORES PAXAR WHICH MAKES FABRIC LABELS AND TAGS FOR RETAIL AND APPAREL MARKETS SAID THE COMPANY WOULD INCORPORATE THE ANTI THEFT TAGS INTO THE LABELS IT ALREADY MAKES THE PEARL RIVER N. Y. COMPANY EXPECTS THE PROGRAM TO INCREASE SALES BY ABOUT ONE MILLION DOLLARS THIS YEAR SENSORMATIC DEERFIELD BEACH FLORIDA SUPPLIES ELECTRONIC SECURITY SYSTEMS TO RETAIL COMMERCIAL AND INDUSTRIAL MARKETS THE AGREEMENT WITH PAXAR REPRESENTS THE INTRODUCTION OF ITS UNIVERSAL PRODUCT PROTECTION PROGRAM TO THE SOFT GOODS INDUSTRY LAST MONTH IT SAID HOME DEPOT INCORPORATED BEGAN A SOURCE TAGGING PROGRAM TO PUT THE ANTI THEFT LABELS ONTO MERCHANDISE WHEN IT IS MADE OR DISTRIBUTED DIRECTORS OF PARAMOUNT COMMUNICATIONS INCORPORATED ENDORSED A TAKEOVER BID BY VIACOM INCORPORATED OVER A RIVAL BID BY Q. V. C. NETWORK INCORPORATED FOLLOWING THE FINAL ROUND OF BIDDING IN THE LONG RUNNING TAKEOVER BATTLE PARAMOUNT STOCKHOLDERS HAVE UNTIL FEBRUARY FOURTEENTH TO DECIDE WHICH OF THE TWO OFFERS EACH VALUED AT MORE THAN TEN BILLION DOLLARS TO ACCEPT THE BOARD URGED SHAREHOLDERS TO TENDER THEIR STOCK TO ONE OR THE OTHER BIDDER WARNING THAT ALLOWING THE CONTEST TO DRAG ON POSES A RISK TO PARAMOUNT'S BUSINESS AND COULD PERSUADE VIACOM TO DROP ITS OFFER ALTHOUGH VIACOM SAID FRIDAY THAT IT ISN'T CONSIDERING DROPPING ITS BID STOCK TRADERS SAID THAT FRIDAY'S NINETY SIX POINT TWO FOUR POINT DROP IN THE DOW JONES INDUSTRIAL AVERAGE MIGHT INDUCE INVESTORS TO MAKE A DECISION RATHER THAN RISK A STEEPER MARKET DECLINE THAT COULD CAUSE ONE OR BOTH BIDDERS TO REASESS THEIR OFFERS YOU REPORTED WORLD WIRE JANUARY TWENTY FIRST THAT THE FASHION HOUSE CHANEL AND DESIGNER KARL LAGERFELD HAVE PUT LINES FROM THE KORAN ON SOME OF THEIR SUMMER LINE THEN TO PLACATE A HANDFUL OF MUSLIMS WHOSE DELICATE SENSIBILITIES WERE OFFENDED THEY MADE AN INSTANT PILGRIMAGE TO CANOSSA IN ADDITION TO EXPUNGING ALL TRACE OF THE OFFENDING GARMENTS FROM THE FACE OF THE EARTH THEY ALSO ASKED THAT ALL PHOTOS AND T. V. RECORDS BE DESTROYED ALL THE WHILE DENYING THAT THEY WERE DOING SO OUT OF FEAR OF REPRISALS THEIR ACTIONS RAISE A FEW QUESTIONS WHY AREN'T THE DEFENDERS OF FREEDOM OF SPEECH ET CETERA SCREAMING BLOODY MURDER WHY WAS IT SO NECESSARY TO DENY THAT THEY FEARED REPRISALS WHEN NONE WERE THREATENED IF IN THE FUTURE THEY SHOULD SIMILARLY OFFEND JEWS OR CHRISTIANS WILL THEY UNDERTAKE SIMILAR CORRECTIVE ACTION WITH THE SAME ALACRITY SPONTANEOUSLY OR ONLY IF THE VATICAN STARTS OFFERING BOUNTIES WHOM DO THEY THINK THEY'RE KIDDING THE FED'S DECISION TO RAISE SHORT TERM INTEREST RATES FOR THE FIRST TIME IN NEARLY FIVE YEARS WON'T HAVE A SIGNIFICANT IMPACT ON THE ECONOMY MOST ECONOMISTS SAY THEY SAY THE FED BY NUDGING UP THE FEDERAL FUNDS RATE TO THREE POINT TWO FIVE PERCENT FROM THREE PERCENT BEFORE INFLATION HAD BEGUN TO ACCELERATE IS WAGING A PSYCHOLOGICAL WAR THE MOVE DREW A MILD RESPONSE FROM THE WHITE HOUSE DEMONSTRATING THAT A GREENSPAN CLINTON ALLIANCE CONTINUES STOCKS FELL SHARPLY ON THE FED ACTION BUT MANY ANALYSTS DON'T THINK THE RATE RISE WILL DERAIL THE BULL MARKET THE DOW JONES INDUSTRIALS PLUNGED NINETY SIX POINT TWO FOUR POINTS OR TWO POINT FOUR PERCENT TO THREE THOUSAND EIGHT HUNDRED SEVENTY ONE POINT FOUR TWO THE UNEMPLOYMENT RATE ROSE TO SIX POINT SEVEN PERCENT OF THE WORK FORCE IN JANUARY INTERRUPTING A STRING OF ENCOURAGING JOB GAINS BUT A HEALTHY RISE IN FACTORY EMPLOYMENT SUGGESTS THAT THE LABOR MARKET IS STILL ON SOLID FOOTING JAPANESE TRADE NEGOTIATORS SAY U. S. OFFICIALS ARE PRESSING JAPANESE CAR MAKERS IN THE U. S. TO PRODUCE CARS THAT HAVE NINETY PERCENT OF THEIR PARTS MADE IN NORTH AMERICA LOCAL CONTENT RULES FAR TOUGHER THAN FOR OTHER FOREIGN FIRMS THE TEAMSTERS UNION ADVISED ITS WORKERS TO DEFY A COURT ORDER AND STRIKE U. P. S. TODAY THE MOVE COULD CRIPPLE THE PACKAGE CARRIER AND DISRUPT BUSINESSES THROUGHOUT THE COUNTRY DETROIT'S BIG THREE ARE ESCALATING THEIR EFFORTS TO PERSUADE CLEAN AIR REGULATORS IN CALIFORNIA AND THE NORTHEAST TO RETREAT FROM A NINETEEN NINETY EIGHT DEADLINE FOR THE MASS PRODUCTION OF ELECTRIC CARS U. S. AUTO MAKERS RAISED THEIR PLANS FOR FIRST QUARTER CAR OUTPUT THREE POINT TWO PERCENT FROM THE ALREADY OPTIMISTIC SCHEDULE SET JUST A MONTH AGO IN ALL COMPANIES BUILDING VEHICLES IN THE U. S. PLAN TO PRODUCE TWENTY PERCENT MORE THAN A YEAR AGO CHRYSLER RECALLED ALL FIFTEEN THOUSAND NEON CARS BUILT SO FAR TO REPLACE A COMPUTER UNIT AFTER HAVING STRESSED THE QUALITY CONTROLS IT IMPOSED ON THE NEW CAR THE INTERNATIONAL ENERGY AGENCY RAISED ITS FORECAST OF WORLD WIDE PETROLEUM DEMAND FOR THE FIRST QUARTER MERRILL LYNCH WAS BARRED FROM A LEAD UNDERWRITER'S ROLE IN FORTHCOMING BOND SALES BY MASSACHUSETTS MAJOR U. S. AIRLINES ARE COMPETING FIERCELY FOR ROUTE RIGHTS TO VIETNAM AFTER SPENDING THE PAST TWO YEARS WOOING VIETNAMESE GOVERNMENT AND AIRLINE OFFICIALS IN ORDER TO GET A LEG UP ONCE THE U. S. EMBARGO ENDED ROGERS COMMUNICATIONS DELAYED ITS PLAN TO MAKE A BID FOR MACLEAN HUNTER CITING QUOTE UNCERTAINTIES QUOTE RELATED TO A BLOCK OF THE TARGET COMPANY'S STOCK INDIRECTLY HELD BY MACLEAN INFORMATION RESOURCES CLIENT BRISTOL MYERS IS EXPECTED TO SWITCH ITS ACCOUNT TO NIELSEN ON FRIDAY I. R. I. SAID ITS FOURTH QUARTER PROFIT WILL BE HALF OF WHAT WAS ANTICIPATED SENDING ITS STOCK DOWN EIGHT POINT EIGHT SEVEN FIVE DOLLARS OR TWENTY FOUR PERCENT TO TWENTY EIGHT DOLLARS AND SEVENTY FIVE CENTS W. L. R. FOODS' BOARD REJECTED AN UNSOLICITED OFFER BY TYSON FOODS TO BUY THE POULTRY PROCESSOR FOR THREE HUNDRED TWENTY NINE MILLION DOLLARS BRITISH AEROSPACE CHAIRMAN JOHN CAHILL IS EXPECTED TO RESIGN SOON IN THE WAKE OF A BOARDROOM TUSSLE ACCORDING TO VARIOUS U. K. NEWSPAPER REPORTS BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED SIXTY POINT EIGHT EIGHT OFF THIRTY FOUR POINT ONE THREE COMMODITIES OIL FIFTEEN DOLLARS AND SIXTY THREE CENTS A BARREL OFF TWENTY SIX CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY FIVE POINT FOUR NINE UP ZERO POINT SIX ZERO SPOT INDEX ONE HUNDRED THIRTY ONE POINT TWO SEVEN OFF ZERO POINT ZERO EIGHT DOLLAR ONE HUNDRED NINE POINT THREE OH YEN UP ONE POINT ONE SIX ONE POINT SEVEN FIVE EIGHT FIVE MARKS UP ZERO POINT ZERO ONE SEVEN ZERO JUDGING FROM SEVERAL IRATE LETTERS I HAVE RECEIVED IN REACTION TO MY JANUARY TENTH LETTER TO THE EDITOR SOME HAVE MISUNDERSTOOD MY STATEMENT THAT ALFRED RUSSEL WALLACE REJECTED NATURAL SELECTION FOR THE ORIGIN OF MAN TO MEAN THAT HE REJECTED IT AS A GENERAL EXPLANATION OF EVOLUTION THIS IMPRESSION MAY HAVE BEEN INFLUENCED BY YOUR HEADLINE QUOTE ORIGINATOR RECANTED ON NATURAL SELECTION QUOTE AND THE ASSUMPTION THAT IF SOMETHING IS TRUE FOR MAN IT MUST BE TRUE FOR ALL ORGANISMS WALLACE REMAINED FIRM IN HIS SUPPORT OF HIS GENERAL THEORY UNTIL HIS DEATH IN NINETEEN THIRTEEN HIS DEPARTURE FROM THIS VIEW FOR MAN MAY HAVE COST HIM DEARLY IN ACCREDITATION DARWIN ACCUSED HIM OF MURDERING OUR BABY BUT HE WAS NOT ONE TO BE GREATLY CONCERNED THE REAL ISSUE OF COURSE IS WHETHER COMPETENT SCIENTISTS RETAIN THE RIGHT TO TEACH A COURSE WHEN THEIR ANALYSIS OF THE FACTS LEADS THEM TO DEPART FROM THE CONVENTIONAL INTERPRETATION THE FACTS AFTER ALL ARE PRIMARY AND THE THEORIES IN SUCH AREAS AS EVOLUTION USUALLY TURN OUT TO BE WAY STATIONS AT BEST AND MERE CONSENSUAL DEVICES AT WORST THE FOLLOWING U. S. TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT A. C. F. INDUSTRIES HOLDING CORPORATION TWO HUNDRED MILLION DOLLARS OF FIVE YEAR SENIOR SECURED ZERO COUPON NOTES VIA MERRILL LYNCH AND COMPANY A. C. F. INDUSTRIES INCORPORATED TWO HUNDRED FIFTY MILLION DOLLARS OF TEN YEAR SENIOR NOTES VIA MERRILL LYNCH AMERICAN PAGING INCORPORATED INITIAL THREE POINT FIVE MILLION SHARES VIA GOLDMAN SACHS AND COMPANY AMLI RESIDENTIAL PROPERTIES INCORPORATED INITIAL NINE POINT TWO MILLION SHARES VIA MERRILL LYNCH CHIQUITA BRANDS INTERNATIONAL INCORPORATED ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF TEN YEAR SENIOR NOTES VIA LEHMAN BROTHERS CONSEP INCORPORATED INITIAL TWO POINT TWO MILLION SHARES VIA PRUDENTIAL SECURITIES INCORPORATED D. S. P. GROUP INCORPORATED INITIAL ONE MILLION EIGHT HUNDRED FIFTY THOUSAND SHARES VIA OPPENHEIMER AND COMPANY FEDERAL MOGUL CORPORATION FOUR MILLION SHARES VIA C. S. FIRST BOSTON G. B. PROPERTY FUNDING ONE HUNDRED EIGHTY FIVE MILLION DOLLARS OF TEN YEAR FIRST MORTGAGE BONDS VIA SALOMON BROTHERS INCORPORATED HEALTHCARE REALTY TRUST SIX MILLION TWO HUNDRED FIFTY THOUSAND SHARES VIA DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION INTERCEL INCORPORATED INITIAL ONE POINT SIX MILLION SHARES VIA ROBINSON HUMPHREY COMPANY ISTITUTO MOBILIARE ITALIANO INITIAL ELEVEN POINT SEVEN MILLION AMERICAN DEPOSITARY SHARES EQUAL TO ABOUT THIRTY FIVE MILLION SHARES VIA MORGAN STANLEY AND COMPANY JONES APPAREL GROUP INCORPORATED THREE POINT ONE MILLION SHARES VIA MERRILL LYNCH KAISER ALUMINUM CORPORATION ONE HUNDRED SEVENTY FIVE MILLION DOLLARS OF EIGHT YEAR SENIOR NOTES VIA MERRILL LYNCH LEVEL ONE COMMUNICATIONS INCORPORATED TWO POINT EIGHT MILLION SHARES VIA ALEXANDER BROWN AND SONS INCORPORATED NETMANAGE INCORPORATED ONE POINT NINE MILLION SHARES VIA ROBERTSON STEPHENS AND COMPANY NEXTEL COMMUNICATIONS INCORPORATED FOUR HUNDRED MILLION DOLLARS OF TEN YEAR SENIOR DISCOUNT NOTES VIA MERRILL LYNCH PACIFIC GULF PROPERTIES INITIAL THREE POINT NINE MILLION SHARES VIA ALEXANDER BROWN AND SONS PRT FUNDING CORPORATION EIGHTY FIVE MILLION DOLLARS OF TEN YEAR SENIOR NOTES VIA SALOMON BROTHERS INCORPORATED ROCHESTER TELEPHONE CORPORATION FIVE MILLION SHARES VIA SALOMON BROTHERS SKYWEST INCORPORATED ONE MILLION SHARES VIA ROBINSON HUMPHREY SUMMIT PROPERTIES TRUST INITIAL NINE POINT NINE MILLION SHARES VIA MORGAN STANLEY TATHAM OFFSHORE INCORPORATED INITIAL FIVE MILLION SHARES VIA BEAR STEARNS AND COMPANY THERATECH INCORPORATED TWO POINT ONE MILLION SHARES VIA WILLIAM BLAIR AND COMPANY TRISM INCORPORATED INITIAL ONE POINT EIGHT MILLION SHARES VIA ALEXANDER BROWN AND SONS WEBCO INDUSTRIES INCORPORATED INITIAL TWO POINT FIVE MILLION SHARES VIA KIDDER PEABODY AND COMPANY WESTERN NATIONAL LIFE INSURANCE COMPANY INITIAL THIRTY TWO POINT FOUR MILLION SHARES VIA MERRILL LYNCH XPEDITE SYSTEMS INCORPORATED INITIAL TWO MILLION SHARES VIA PRUDENTIAL SECURITIES ONTARIO DEVELOPMENT AGENCY CALIFORNIA ONE HUNDRED THIRTY THREE POINT SEVEN MILLION DOLLARS OF TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID ORANGE COUNTY LOCAL TRANSPORTATION AUTHORITY CALIFORNIA TWO HUNDRED MILLION DOLLARS OF BONDS VIA A LEHMAN BROTHERS GROUP NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY ONE HUNDRED NINETY MILLION DOLLARS OF MENTAL HEALTH SERVICES FACILITIES IMPROVEMENT REVENUE BONDS VIA A LAZARD FRERES AND COMPANY GROUP NEW MEXICO STUDENT LOAN AUTHORITY ONE HUNDRED FIFTY MILLION DOLLARS OF STUDENT LOAN REVENUE REFUNDING BONDS VIA A SMITH BARNEY SHEARSON GROUP OHIO ONE HUNDRED THIRTY FOUR MILLION DOLLARS OF INFRASTRUCTURE IMPROVEMENT AND REFUNDING BONDS VIA A BEAR STEARNS GROUP PHOENIX CIVIC IMPROVEMENT CORPORATION ARIZONA ONE HUNDRED TEN MILLION DOLLARS OF JUNIOR LIEN WATER SYSTEM REVENUE BONDS VIA A PRUDENTIAL SECURITIES GROUP HERMAN'S SPORTING GOODS INCORPORATED AND ITS OFFICIAL UNSECURED CREDITORS' COMMITTEE SAID THEY AGREED ON A REORGANIZATION PLAN FOR THE COMPANY THE PLAN IS EXPECTED TO PROVIDE UNSECURED CREDITORS WITH CASH AND EQUITY THAT WILL EXCEED NINETY CENTS ON THE DOLLAR FOR THEIR CLAIMS THE AGREEMENT IS SUBJECT TO REVIEW BY THE COMMITTEE'S INVESTMENT BANKERS THE CARTERET N. J. RETAILER SAID IT INTENDS TO FILE THE REORGANIZATION PLAN WITH U. S. BANKRUPTCY COURT IN NEW JERSEY SHORTLY AND EXPECTS TO EMERGE FROM CHAPTER ELEVEN BANKRUPTCY LAW PROTECTION BY MID NINETEEN NINETY FOUR HERMAN'S OPERATIONS AS WELL AS ITS SECURED DEBT WERE PURCHASED BY A U.S.BASED INVESTOR GROUP IN MARCH AND THE COMPANY FILED FOR BANKRUPTCY CODE PROTECTION SOON AFTER HERMAN'S CURRENTLY HAS ABOUT NINETY EIGHT STORES IN THE NORTHEAST CORRIDOR DOWN FROM TWO HUNDRED FIFTY THREE STORES AT ACQUISITION A HERMAN'S OFFICIAL SAID THE EXISTING OPERATION IS EXPECTED TO GENERATE THREE HUNDRED FORTY MILLION DOLLARS TO THREE HUNDRED FIFTY MILLION DOLLARS IN SALES IN THE FISCAL YEAR WHICH STARTED TUESDAY THE OPENING OF YOUR JANUARY TENTH ARTICLE ABOUT BLOCKBUSTER ENTERTAINMENT SELLING OUT TO VIACOM IS A REHASH OF NONSENSICAL VERBIAGE THAT WAS STARTED IN NINETEEN FIFTY SIX TO QUOTE HIGH FIDELITY MAGAZINE JUNE NINETEEN FIFTY SIX QUOTE THE DEATH KNELL HAS SOUNDED FOR THE RECORD INDUSTRY WITH THE ADVENT OF TAPE RECORDERS WHY BUY RECORDS WHEN YOU WILL BE ABLE TO TAPE THEM OFF THE RADIO THE COMPTROLLER OF THE CURRENCY ALLOWED NATIONSBANK CORPORATION TO MERGE TWO BRANCH NETWORKS IN MARYLAND AND THE DISTRICT OF COLUMBIA THE RULING BASED ON AN OBSCURE PROVISION IN FEDERAL LAW ALLOWS NATIONSBANK TO BYPASS PROHIBITIONS AGAINST OPERATING A SINGLE BRANCH NETWORK ACROSS STATE LINES IT ALSO CLEARS THE WAY FOR THE CHARLOTTE N. C. BASED COMPANY TO PURSUE AN AGGRESSIVE INTERSTATE CONSOLIDATION STRATEGY EVEN BEFORE CONGRESS REMOVES THE LONG STANDING OBSTACLES TO INTERSTATE BRANCHING THE COMPTROLLER'S ACTION FOLLOWS A SIMILAR DECISION LAST MONTH AFFECTING FIRST FIDELITY BANCORP'S OPERATIONS IN NEW JERSEY AND PENNSYLVANIA THE TWO RULINGS REFLECT A GROWING LEVEL OF SUPPORT FOR INTERSTATE BRANCHING AN INTERSTATE BANKING BILL THAT WOULD ALLOW BRANCH NETWORK CONSOLIDATION RECENTLY SURFACED IN CONGRESS AND RECEIVED UNANIMOUS APPROVAL LAST WEEK FROM A HOUSE BANKING SUBCOMMITTEE THE HOUSE BILL ALSO SEEKS TO ELIMINATE OBSTACLES TO INTERSTATE ACQUISITIONS SIMILAR MEASURES PENDING IN STATE LEGISLATURES INCLUDING THOSE IN GEORGIA VIRGINIA AND FLORIDA ARE FUELING THE MOVEMENT TOWARD INTERSTATE BANKING AS WELL QUOTE IT'S JUST A MATTER OF TIME BEFORE THESE BARRIERS ARE MOVED IN TERMS OF BOTH INTERSTATE BRANCHING AND INTERSTATE BANKING QUOTE PREDICTED KATHRYN H. BISSETTE AN ANALYST WITH STERNE AGEE AND LEACH INCORPORATED IN ATLANTA CURRENTLY BANK HOLDING COMPANIES IN MOST STATES MUST OPERATE A SEPARATE SUBSIDIARY IN EACH STATE WHERE THEY HAVE BRANCHES BUT NATIONSBANK AND OTHERS HAVE ARGUED THAT SUCH STRICTURES CREATE INCONVENIENCES FOR CUSTOMERS AND DRIVE UP COSTS FOR BANKS BEFORE THIS RULING FOR INSTANCE A NATIONSBANK CUSTOMER OPENING AN ACCOUNT IN MARYLAND COULDN'T MAKE A DIRECT DEPOSIT INTO THAT ACCOUNT FROM A BRANCH IN WASHINGTON WITH THE COMPTROLLER'S BACKING IN HAND NATIONSBANK MAY NOW PURSUE ADDITIONAL CONSOLIDATIONS ELSEWHERE IN ITS BRANCH SYSTEM WHICH COVERS NINE STATES AND THE DISTRICT OF COLUMBIA THE COMPANY IS LOOKING INTO THE POSSIBILITIES A SPOKESMAN SAID THOUGH IT HASN'T YET DETERMINED WHERE ITS NEXT MOVE MAY BE ONE CLEAR OPTION WOULD BE TO MERGE NATIONSBANK'S VIRGINIA OPERATIONS INTO ITS NEWLY CONSOLIDATED WASHINGTON AREA OPERATION ALTHOUGH IT WOULD NEED COMPTROLLER APPROVAL FOR THAT AND OTHER SUCH MOVES THE COMPTROLLER GRANTED THE SPECIAL RIGHTS TO NATIONSBANK AND FIRST FIDELITY UNDER A FEDERAL STATUTE THAT ALLOWS BANKS TO MOVE THEIR HEADQUARTERS AS MUCH AS THIRTY MILES AWAY FROM THE TOWN OR CITY WHERE THE BANK WAS ORIGINALLY CHARTERED REGARDLESS OF STATE BOUNDARIES NATIONSBANK CAN NOW MOVE THE OFFICIAL HEADQUARTERS OF AMERICAN SECURITY BANK N. A. FROM THE DISTRICT OF COLUMBIA TO SILVER SPRING MARYLAND SIX AND ONE HALF MILES FROM THE STATE LINE AMERICAN SECURITY CAN THEN BE MERGED WITH MARYLAND NATIONAL BANK BASED IN BALTIMORE NATIONSBANK PURCHASED BOTH BANKS LAST YEAR THE COMPANY SAID THE CONSOLIDATION IS EFFECTIVE IMMEDIATELY A CALIFORNIA STATE COURT JUDGE DISMISSED THEFT CHARGES AGAINST A WMX TECHNOLOGIES INCORPORATED UNIT AND EIGHT EMPLOYEES LIFTING A CLOUD THAT HAS HUNG OVER THE TRASH HAULER'S MUNICIPAL COLLECTION BUSINESS SINCE JULY NINETEEN NINETY TWO WHEN INDICTMENTS WERE DISCLOSED THE DISMISSALS ARE A BIG VICTORY FOR OAK BROOK ILLINOIS BASED WMX FORMERLY KNOWN AS WASTE MANAGEMENT INCORPORATED AND A SETBACK FOR ITS RIVAL IN THE TRASH BUSINESS HOUSTON BASED BROWNING FERRIS INDUSTRIES INCORPORATED THE CRIMINAL INDICTMENTS STEMMED FROM THE TWO COMPANIES' CONTRACTS WITH SAN JOSE CALIFORNIA FOR SEVERAL YEARS WMX HELD THE CITY'S HAULING CONTRACT AND BROWNING FERRIS HAD THE DUMP CONTRACT FORCING THE NATION'S RESPECTIVE NUMBER ONE AND NUMBER TWO WASTE CONCERNS TO WORK TOGETHER THE INDICTMENT CHARGED WMX WITH STEALING FROM THE CITY AND FROM BROWNING FERRIS BY DUMPING TRASH FROM COMMERCIAL CUSTOMERS AT A BROWNING FERRIS DUMP WHILE PAYING A LOW MUNICIPAL DUMPING FEE BROWNING FERRIS COMPLAINED THAT USING THE MUNICIPAL FEE TO DUMP TRASH COLLECTED FROM COMMERCIAL CUSTOMERS GAVE WMX AN UNFAIR MARKET ADVANTAGE WMX PERSUADED JUDGE DAVID LEAHY OF SUPERIOR COURT IN SANTA CLARA COUNTY THAT ITS CONTRACT WITH THE CITY ALLOWED TRASH COLLECTED UNDER COMMERCIAL CONTRACTS TO BE DUMPED AT THE BROWNING FERRIS SITE WMX TO COMPENSATE SAID IT DUMPED LIKE AMOUNTS OF MUNICIPAL TRASH AT ITS OWN OR OTHER DUMPS THUS NEITHER THE CITY NOR BROWNING FERRIS LOST ANY MONEY UNDER THE ARRANGEMENT THE REASON FOR THE MIXING OF TRASH WAS TO MAKE COLLECTION ROUTES MORE EFFICIENT WMX SAID SOME MUNICIPAL TRASH WAS PICKED UP BY WMX TRUCKS VERY CLOSE TO THE BROWNING FERRIS DUMP WHILE OTHER CITY WASTE WAS COLLECTED CLOSER TO WMX'S OWN DUMP QUOTE WE'VE SAID FROM THE START THAT NOTHING IMPROPER TOOK PLACE QUOTE A WMX SPOKESMAN SAID CONVICTIONS IN THE CASE WOULD HAVE BEEN A BLACK EYE FOR WMX'S HUGE MUNICIPAL COLLECTION BUSINESS IN THE U. S. BECAUSE TRASH FROM ONE CUSTOMER IS DIFFICULT TO DISTINGUISH FROM THAT OF ANOTHER A CERTAIN LEVEL OF TRUST IS REQUIRED IN MOST BIG HAULING AND DISPOSAL CONTRACTS THE SAN JOSE COLLECTION CONTRACT CLEARLY GAVE WMX AN ADDITIONAL EDGE WITH COMMERCIAL CUSTOMERS IN THE AREA ONE THAT IT EMPLOYED BUT IT WAS A LEGAL EDGE WMX SAID BROWNING FERRIS WHICH HAD LOST OUT ON THE COLLECTION CONTRACT WAS TRULY A SORE LOSER WMX SAID IN COURT PAPERS SEEKING DISMISSAL OF THE CHARGES IT WAS A BROWNING FERRIS COMPLAINT TO THE CITY AFTER THE COMPANY ALSO LOST OUT ON A COMMERCIAL COLLECTION CONTRACT TO WMX THAT INITIATED THE CASE TRASH FROM THAT COMMERCIAL CUSTOMER WAS DUMPED AT THE BROWNING FERRIS SITE UNDER THE CITY CONTRACT'S FEE WHICH WAS ABOUT HALF THE MARKET PRICE MORE THAN EIGHTY WITNESSES APPEARED BEFORE A GRAND JURY AND SAN JOSE POLICE FOR WEEKS TAILED WMX GARBAGE TRUCKS IN THE INVESTIGATION A BROWNING FERRIS SPOKESMAN DECLINED TO COMMENT YESTERDAY AFTER BRAGGING ABOUT THE STRICT QUALITY CONTROLS IT HAS IMPOSED ON ITS NEW NEON SMALL CAR CHRYSLER CORPORATION FINDS ITSELF IN THE EMBARRASSING POSITION OF RECALLING FOR REPAIRS ALL OF THE FIFTEEN THOUSAND CARS IT HAS BUILT SO FAR THIS IS THE SECOND RECALL IN THE CAR'S SHORT HISTORY THE PROBLEM INVOLVES WATER LEAKS THAT AFFECT THE CAR'S COMPUTER BRAIN THE RESULT IS THAT SOME NEONS WON'T START A PROBLEM THAT CHRYSLER PREVIOUSLY HAD IDENTIFIED AS THE NUMBER ONE WORRY OF POTENTIAL BUYERS TO CORRECT THE LATEST PROBLEM CHRYSLER IS REPLACING EACH COMPUTER UNIT A SMALL CIRCUIT BOARD AND A CHIP PACKED IN A ZINC DIE CAST BOX CALLED THE ENGINE CONTROL MODULE IN ALL THE CARS BUILT SO FAR IT ALSO IS SHUTTING DOWN ITS BELVIDERE ILLINOIS PLANT FOR A WEEK AS IT WAITS FOR ACUSTAR ITS OWN SUPPLY DIVISION TO PRODUCE ENGINE CONTROLLERS THAT WON'T LEAK THE RECALL BILL FOR PARTS ALONE COULD BE ONE POINT FIVE MILLION DOLLARS INCLUDING LABOR THE COST EASILY COULD DOUBLE AS EXPENSIVE AND POTENTIALLY DAMAGING TO THE CARS' REPUTATION AS THAT COULD BE CHRYSLER IS LOOKING FOR A SILVER LINING IN THE SITUATION ONLY ONE THOUSAND THREE HUNDRED OF THE CARS HAVE ACTUALLY BEEN SOLD TO RETAIL CUSTOMERS AND NOW CHRYSLER IS TRYING TO USE THE RECALL TO SHOW CUSTOMERS THAT IT WILL BEND OVER BACKWARD TO TREAT THEM WELL CHRYSLER HAS ASKED ITS DEALERS TO PICK THE CARS UP PROVIDE A REPLACEMENT CAR CLEAN THE NEONS AND FILL THEM UP WITH GASOLINE QUOTE YES WE HAVE A GLITCH QUOTE SAID BOB MARCELL THE HEAD OF CHRYSLER'S NEON PRODUCTION EFFORT QUOTE BUT EVERYBODY HAS GLITCHES AND HOW QUICKLY AND HOW POSITIVELY YOU REACT TO THE GLITCHES IS WHAT IS IMPORTANT QUOTE SOME ANALYSTS AGREED THE MOST IMPORTANT THING AT THE END OF THE DAY IS THAT THE CUSTOMER IS NEVER INCONVENIENCED SAID JOSEPH PHILLIPPI AN ANALYST WITH LEHMAN BROTHERS THEY'RE TRYING TO PULL A SATURN MR. PHILLIPPI SAID REFERRING TO THE STERLING REPUTATION THAT GENERAL MOTORS CORPORATION'S SATURN UNIT HAS DEVELOPED THROUGH ITS SOLICITOUS STRAIGHTFORWARD HANDLING OF RECALLS THE EARLIER RECALL OF THE NEON WHICH WENT ON SALE IN EARLY JANUARY INVOLVED A FLAWED BRAKE CYLINDER THAT HAD TO BE REPLACED ON SOME MODELS THIS WEEK'S PLANT SHUTDOWN IS SURE TO FURTHER ANNOY CHRYSLER DEALERS WHO HAVE BEEN COMPLAINING THAT THEY CAN'T GET ENOUGH NEONS ALAN GREENSPAN TOOK THE UNUSUAL STEP FRIDAY OF ANNOUNCING SOMETHING THE MARKETS SOON WOULD FIND OUT ANYWAY THAT THE FEDERAL RESERVE WAS LETTING SHORT TERM INTEREST RATES CLIMB A LITTLE BIT SINCE THIS WAS ONLY FOUR DAYS AFTER THE FED CHAIRMAN HAD TOLD CONGRESS THAT RATES MIGHT HAVE TO RISE QUOTE AT SOME POINT QUOTE YOU MIGHT SAY MR. GREENSPAN HAS BEEN PRACTICING THE ART OF PSYCHOLOGICAL PREPARATION SO FAR IT'S WORKING TREASURY SECRETARY LLOYD BENTSEN SAID THE FRIDAY DECISION WHICH KNOCKED NINETY SIX POINTS OFF THE DOW WAS NOT UNEXPECTED AND HAD INDEED ALREADY BEEN PROGRAMMED INTO THE ADMINISTRATION'S NINETEEN NINETY FOUR ECONOMIC GROWTH ESTIMATES DOES THIS MEAN THAT THE UNITED STATES HAS ENTERED SOME NEW STATE OF BLISS IN WHICH THE FED CAN ADJUST INTEREST RATES IN RESPONSE TO ITS BEST JUDGMENTS WITHOUT CREATING UNDUE EXCITEMENT IN WASHINGTON DON'T BET ON IT THE MILD REACTION WAS BORN OF THE EUPHORIA OF ECONOMIC RECOVERY BUT EUPHORIA IS EPHEMERAL THE FED THE MARKETS AND THE CLINTON ECONOMIC TEAM FACE MORE DIFFICULT TESTS JUST AHEAD MR. GREENSPAN TIPPED OFF HIS CONCERNS A WEEK AGO WHEN HE TESTIFIED THAT SHORT TERM INTEREST RATES ARE CURRENTLY ABNORMALLY LOW IN REAL TERMS AT SOME POINT ABSENT AN UNEXPECTED AND PROLONGED WEAKENING OF ECONOMIC ACTIVITY WE WILL NEED TO MOVE THEM TO A MORE NEUTRAL STANCE WHAT HE MEANT BY NEUTRAL IS THAT THE FED WOULD HAVE TO ADJUST TO RISING CREDIT DEMAND BY ALLOWING AN INCREASE IN THE BANKING SYSTEM'S INTERNAL MARKET PRICE OF SHORT TERM MONEY IF THE FED HAD KEPT SUPPLYING SUFFICIENT RESERVES TO HOLD THIS FED FUNDS RATE AT THREE PERCENT IT WOULD HAVE RISKED FLOODING THE ECONOMY WITH MONEY EITHER CREATING A DANGEROUS BUBBLE IN SECURITIES AND REAL ESTATE OR TOUCHING OFF INFLATION SO IT LET FED FUNDS EDGE UP BUT KEPT ITS MORE POLITICALLY SENSITIVE QUOTE DISCOUNT RATE QUOTE ON LOANS TO BANKS AT THREE PERCENT POWERFUL DEFLATIONARY PRESSURES BROUGHT ABOUT PRIMARILY BY REAL ESTATE DECLINES ARE EASING WHILE THEY EXISTED THE FED WAS SPARED THE KIND OF DECISION IT HAD TO TAKE LAST WEEK EARLY IN THIS DECADE IT BROUGHT SHORT RATES DOWN SHARPLY WITHOUT EVEN A GLIMMER OF RENEWED INFLATION IT HAS HELD THEM AT A ROCK BOTTOM THREE PERCENT FOR OVER A YEAR UP UNTIL FRIDAY IT HAD NOT HAD TO RAISE RATES FOR FIVE YEARS THE SLUGGISH U. S. ECONOMY OF THE EARLY NINETEEN NINETIES CASTS DOUBT ON THE THEORY HELD BY ALL POLITICIANS AND MANY ECONOMISTS THAT CHEAP MONEY IS AN INSTANT CURE FOR RECESSION NOT ONLY WERE RATES LOW BUT THE FED WAS ALSO CREATING BASIC MONEY AT A GOOD CLIP CONGRESS AIDED THIS PROCESS IN THE WAY IT LOVES BEST BY GENERATING LARGE NEW MOUNDS OF DEBT FOR THE FED TO BUY FOR A CENTRAL BANK CHAIRMAN THIS WAS HOG HEAVEN NO ONE COULD FAULT MR. GREENSPAN FOR NOT DOING HIS BIT FOR THE ECONOMY AND CONGRESS AND YET THE INFLATION RATE STAYED LOW HE WAS WARMLY RECEIVED ON CAPITOL HILL AND AT WHITE HOUSE SOCIAL GATHERINGS AND WAS LOOKED UP TO AS SOMETHING OF A GENIUS MAYBE HE REALLY IS BUT WE'LL KNOW MORE ABOUT THAT IF HE CAN GET THROUGH THE NEXT SEVERAL MONTHS UNSCATHED THERE ARE SOME TROUBLING STRAWS FLOATING AROUND IN THE WIND WITH INFLATION WARNINGS PAINTED ON THEM PRECIOUS METAL PRICES AND COMMODITY FUTURES INDEXES ARE POINTING UPWARD AGAIN TO ADD TO THESE FAINT SIGNALS AMERICA'S PURCHASING AGENTS REPORTED LAST WEEK THAT THEY ALSO ARE SEEING UPWARD PRICE ACTION IN THE GOODS THEY BUY NONE OF THIS SHOULD BE ESPECIALLY SURPRISING GIVEN THE SHARP SPURT IN THE ECONOMY LATE LAST YEAR CONSUMER SPENDING IN NINETEEN NINETY THREE WAS UP SIX PERCENT FROM THE YEAR BEFORE BUT AS MR. GREENSPAN TRIES TO STEER AROUND INFLATION'S SCYLLA HE ALSO HAS A CHARYBDIS TO AVOID ON HIS OTHER FLANK IT'S CALLED A SECURITIES MARKET CRASH IT IS INTERESTING THAT THE DROP IN STOCKS FRIDAY WAS ACCOMPANIED BY A FURTHER SOFTENING OF LONG BONDS A MARKET THAT SHOULD HAVE WELCOMED MOVES AGAINST INFLATION THE DOLLAR FIRMED IN LIGHT OF THIS SCENARIO OF FALLING SECURITIES AND RISING CASH IT IS USEFUL TO LOOK AT WHAT SOME MARKET BEARS HAVE BEEN SAYING THEY HAVE BEEN ASKING WHAT A RESURGENCE OF CREDIT DEMAND FROM THE REAL SECTOR WILL MEAN FOR THE FINANCIAL SECTOR BY THEIR ANALYSIS A LOT OF THE BASE MONEY THE FED HAS BEEN SO GENEROUSLY CREATING HAS BEEN FLOWING INTO SECURITIES IMPORTANTLY BY MEANS OF AN EXPLOSION OF MUTUAL FUNDS AND MAY ALREADY HAVE INFLATED SECURITIES VALUES SOME MONETARIST TYPES SUPPORT THIS THEORY BY NOTING THE CONTRAST BETWEEN THE FED'S HIGH RATE OF BASE MONEY CREATION AND THE SLOW GROWTH IN BROAD MONEY THE HIGHLY LIQUID FUNDS IN CHECKING AND SAVINGS ACCOUNTS BUT THEN IT IS NO SECRET THAT IT HAS BEEN FAR MORE ATTRACTIVE FOR SAVERS TO PUT THEIR MONEY INTO SECURITIES THAN TO LEAVE IT IN BANKS OR MONEY MARKET INSTRUMENTS AT THE LOW RETURNS THE FED HAS DECREED THE BOTTOM LINE OF THIS FORM OF ANALYSIS IS THAT THE FED DURING ALL THAT TIME WHEN IT WAS DWELLING IN CENTRAL BANKING NIRVANA MAY HAVE BEEN CREATING A SECURITIES MARKET BUBBLE NOW THAT THE FED IS BEING FORCED TO LET SHORT TERM RATES RISE THERE IS A RISK THAT A REVERSE FLOW WILL BEGIN OUT OF SECURITIES AND BACK INTO BANKS AND MONEY MARKET INSTRUMENTS THEREBY LETTING THE AIR OUT OF SECURITIES PRICES IF OUT OF FEAR OF JUST THAT THE FED REFUSES TO RAISE SHORT RATES SUFFICIENTLY WILL IT BRING ON THE INFLATION THAT MAY BE LURKING IN THE WINGS THE CONSEQUENCES OF THAT COULD BE EVEN MORE SERIOUS FOR THE ECONOMY AND IT WON'T HELP THE SECURITIES MARKET MUCH EITHER AS THE EXPERIENCE OF THE NINETEEN SEVENTIES SHOWED BUT THE FED WILL FACE THE USUAL POLITICAL PRESSURES TO KEEP RATE RAISES MODEST MR. CLINTON MR. BENTSEN AND CONGRESS WILL NOT BE AS SANGUINE AS THEY WERE LAST WEEK IF MR. GREENSPAN STARTS RAISING INTEREST RATES SHARPLY THIS YEAR IN ADVANCE OF A CONGRESSIONAL ELECTION NOW MAYBE ALL THIS IS JUST THE KIND OF SCARY TALK YOU ALWAYS HEAR FROM MARKET BEARS CASSANDRA TYPE WARNINGS ALWAYS SOUND A BIT OFF KEY WHEN SO MANY THINGS ARE LOOKING RIGHT LOW INFLATION RENEWED ECONOMIC GROWTH A HIGH DOW AND MAYBE EVEN A FEW SIGNS OF STIRRINGS IN THE ECONOMIES OF EUROPE AND JAPAN ALTHOUGH DON'T BET HEAVILY ON THAT YET ON THE SURFACE THE FINANCIAL SECTOR LOOKS STRONG CERTAINLY BANKS HAVE MADE AN IMPRESSIVE RECOVERY THANKS IN PART TO MR. GREENSPAN'S ADEPT MANAGEMENT OF MONETARY POLICY BUT THE BOND MARKET WAS FALTERING JUST A BIT EVEN BEFORE LAST WEEK'S LITTLE JOLT THERE ARE THOSE WISPS OF HEAT EMANATING FROM THE COMMODITY MARKETS AND FINALLY THERE IS MR. GREENSPAN HIMSELF ADMINISTERING PSCYHOLOGICAL PREPARATION TO POLITICIANS IT IS TO BE HOPED THAT THE MILD RESPONSE HE HAS RECEIVED SO FAR WILL REMAIN SO IF HE HAS TO ACT MORE VIGOROUSLY THAN SOME OF HIS FANS NOW EXPECT THE ECONOMY'S STRING OF ENCOURAGING JOB GAINS WAS INTERRUPTED IN JANUARY BUT A HEALTHY RISE IN FACTORY EMPLOYMENT SUGGESTS THE LABOR MARKET IS STILL ON SOLID FOOTING THE LABOR DEPARTMENT SAID THAT ONLY SIXTY TWO THOUSAND JOBS WERE CREATED LAST MONTH THAT'S A BIG DIFFERENCE FROM THE NEARLY TWO HUNDRED THOUSAND JOBS THE ECONOMY AVERAGED IN THE FOUR MONTHS BEFORE BUT THE FRIGID TEMPERATURES EXPERIENCED ACROSS MUCH OF THE NATION HELD DOWN EMPLOYMENT LAST MONTH ACCORDING TO KATHERINE ABRAHAM COMMISSIONER OF THE DEPARTMENT'S BUREAU OF LABOR STATISTICS EVEN SO THE MANUFACTURING SECTOR MANAGED TO GAIN TWENTY SIX THOUSAND JOBS CONTINUING GROWTH STARTED IN OCTOBER HOURS OF WORK AND EARNINGS BOTH INCREASED THE UNEMPLOYMENT RATE WHICH WAS REPORTED AT SIX POINT FOUR PERCENT OF THE WORK FORCE IN DECEMBER REGISTERED SIX POINT SEVEN PERCENT LAST MONTH BUT OFFICIALS CAUTIONED THAT THE BIG INCREASE IN THE RATE SHOULDN'T BE PERCEIVED AS A DETERIORATION IN JOB CONDITIONS JANUARY'S EMPLOYMENT REPORT WAS THE FIRST UNDER A NEW SURVEY DESIGN WITH DIFFERENT QUESTIONS TO WHICH THE ANSWERS ARE RECORDED ON COMPUTERS IT MAY BE MARCH BEFORE THERE'S A GOOD PICTURE OF HOW THE LABOR MARKET IS SHAPING UP THIS YEAR AS THE LOS ANGELES EARTHQUAKE COULD DISTORT FEBRUARY EMPLOYMENT THE COLD HAD THE MOST EFFECT ON SERVICE JOBS WHICH SERVED AS A PRIMARY SOURCE OF JOB GROWTH FOR NEARLY TWO YEARS BUT WAS FLAT IN JANUARY RETAIL FINANCE INSURANCE AND REAL ESTATE ALL ADDED FEWER JOBS IN JANUARY THAN IN DECEMBER CONSTRUCTION JOBS FELL FOR THE SECOND CONSECUTIVE MONTH BUT ANALYSTS EXPECT INCREASES IN COMING MONTHS TO KEEP UP WITH GROWTH IN THE HOUSING SECTOR WEATHER ASIDE THE EMPLOYMENT FIGURES WERE ENCOURAGING AND THE FEDERAL RESERVE DEFINITELY DIDN'T VIEW THE SMALL JOB GAINS AS A SIGN THE ECONOMY WAS HEADED FOR TROUBLE AS IT RAISED SHORT TERM INTEREST RATES MIDMORNING FRIDAY AFTER THE EMPLOYMENT FIGURES CAME OUT QUOTE THERE IS A LOT OF STRENGTH HERE QUOTE SAID DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY THE GROWTH IN MANUFACTURING JOBS CENTERED IN DURABLE GOODS INDUSTRIES SUCH AS AUTOS AND FURNITURE THIS SUGGESTS THAT WE MAY WELL HAVE TURNED THE CORNER ON THE MANUFACTURING JOBS FRONT SAID LAURA TYSON HEAD OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IN ADDITION NONFARM HOURS CLIMBED ZERO POINT NINE PERCENT AND MANUFACTURING HOURS WERE UP ZERO POINT THREE PERCENT THOSE WHO DID COME TO WORK CERTAINLY WORKED A LOT HARDER SAID RICHARD BERNER CHIEF ECONOMIST OF MELLON BANK IN PITTSBURGH AVERAGE HOURLY EARNINGS SHOT UP ZERO POINT EIGHT PERCENT THE LARGEST MONTHLY GAIN SINCE SEPTEMBER NINETEEN EIGHTY THREE THE LATEST UNEMPLOYMENT REPORT ALSO CHANGED THE DEFINITION OF DISCOURAGED WORKERS AND FOUND FEWER OF THEM AS A RESULT THE FIGURE HAS BEEN RUNNING AT ABOUT ONE POINT ONE MILLION FOR THE PAST TWO YEARS BUT THE NEW REPORT PUTS IT BEFORE SEASONAL ADJUSTMENT AT SIX HUNDRED THOUSAND A DISCOURAGED WORKER IS ONE WHO WANTS A JOB BUT CAN'T FIND ONE THE NEW DEFINITION EXCLUDES THOSE WHO HAVEN'T LOOKED FOR WORK IN THE PAST YEAR ALSO THE NUMBER OF PEOPLE EMPLOYED PART TIME FOR ECONOMIC REASONS WAS ABOUT ONE MILLION LOWER IN JANUARY THAN DECEMBER BECAUSE RESPONDENTS NOW MUST INDICATE THEY WANTED AND WERE AVAILABLE FOR FULL TIME WORK SEPARATELY THE FEDERAL RESERVE REVISED CAPACITY UTILIZATION RATES DATING BACK TO NINETEEN NINETY AND INDUSTRIAL PRODUCTION FIGURES DATING BACK TO NINETEEN NINETY ONE THE REVISIONS SHOW THAT INDUSTRY WAS USING SLIGHTLY LESS OF ITS CAPACITY THAN PREVIOUSLY THOUGHT IN NINETEEN NINETY THREE THE FED SAID INDUSTRY OPERATED AT EIGHTY ONE POINT FIVE PERCENT OF CAPACITY RATHER THAN THE EIGHTY ONE POINT NINE PERCENT ORIGINALLY REPORTED THERE WERE SMALLER REVISIONS IN EARLIER YEARS TO SEVENTY NINE POINT SEVEN PERCENT IN NINETEEN NINETY TWO SEVENTY NINE POINT ONE PERCENT IN NINETEEN NINETY ONE AND EIGHTY TWO POINT ONE PERCENT IN NINETEEN NINETY INDUSTRIAL PRODUCTION FOR NINETEEN NINETY THREE WAS REVISED TO SHOW A FOUR POINT ONE PERCENT INCREASE RATHER THAN FOUR POINT TWO PERCENT FOR THE PREVIOUS TWO YEARS THE FIGURES WEREN'T CHANGED UP TWO POINT THREE PERCENT IN NINETEEN NINETY TWO AND DOWN ONE POINT NINE PERCENT IN NINETEEN NINETY ONE THE REVISIONS INCORPORATE MORE COMPREHENSIVE MONTHLY SOURCE DATA RESULTS OF A REVIEW OF PRODUCTIVITY RELATIONSHIPS AND UPDATED SEASONAL FACTORS FIGURES IN THE EMPLOYMENT REPORT ARE ADJUSTED FOR SEASONAL VARIATIONS EXCEPT AS NOTED HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED THE U. S. CENTRAL BANK'S DECISION TO NUDGE UP SHORT TERM INTEREST RATES MARKS A POSSIBLE TURNING POINT IN A STORY THAT HAS BEEN POWERING THE RALLIES ON ASIAN STOCK MARKETS ANALYSTS SAY THROUGHOUT LAST YEAR LOW INTEREST RATES IN THE U. S. ENCOURAGED AMERICAN INVESTORS TO SHIFT LARGE SUMS OF MONEY FROM SECURITIES THERE INTO HIGH FLYING ASIAN STOCKS THAT WAVE OF CASH ACCELERATED MARKET RALLIES THROUGHOUT THE REGION AND BY THE END OF LAST YEAR HAD DRIVEN STOCK MARKETS ACROSS ASIA INTO RECORD TERRITORY ON FRIDAY THOUGH THE FED APPEARED TO THROW A WRENCH INTO THE WORKS BY PUSHING THE FEDERAL FUNDS RATE AT WHICH BANKS LEND TO ONE ANOTHER UP ZERO POINT TWO FIVE PERCENTAGE POINT TO THREE POINT TWO FIVE PERCENT THAT WAS THE FIRST RISE IN THE RATE SINCE NINETEEN EIGHTY NINE ON THE ONE HAND ANALYSTS IN HONG KONG VIEW THE ACTION AS SYMBOLIC BECAUSE THE INCREASE WAS SO SMALL ANY DECLINES IN ASIAN STOCKS TODAY ARE LIKELY TO BE ONLY KNEE JERK REACTIONS THEY BELIEVE QUOTE THIS RISE IS REALLY JUST A WARNING SHOT QUOTE SAYS ALAN BUTLER HENDERSON DIRECTOR OF ASIAN STRATEGY AT BARING SECURITIES LIMITED HE EXPECTS ASIAN STOCK MARKETS TO GENERALLY KEEP RISING DURING THE NEXT FEW MONTHS BUT ON THE OTHER HAND STOCK INVESTORS SHOULD BE PREPARING TO LOOK FOR EXIT POINTS OR WHAT SHARES THEY WANT TO SELL FOR A QUICK RETREAT MR. BUTLER HENDERSON SAYS THE REAL CRUNCH COULD COME IN THE SECOND HALF HE BELIEVES BY THEN THE U. S. RECOVERY MAY BE PICKING UP STEAM AND JAPAN AND GERMANY PROBABLY WILL HAVE SEEN THE NADIR OF THEIR RECESSIONS UNDER SUCH CONDITIONS THE FED COULD RAISE SHORTTERM RATES AS MUCH AS ONE POINT FIVE PERCENTAGE POINTS SAYS MR. BUTLER HENDERSON IN THAT CASE THE VULNERABLE MARKET WILL BE HONG KONG HE SAYS THE MONETARY PEG TYING HONG KONG'S DOLLAR FIRMLY TO THE U. S. DOLLAR MAKES MR. GREENSPAN'S MONETARY POLICY HONG KONG'S MONETARY POLICY HE SAYS REFERRING TO THE FED'S CHAIRMAN ALAN GREENSPAN SO INTEREST RATES WOULD HAVE TO RISE SHARPLY IN HONG KONG TOO AFTER FOUR YEARS OF STRONG ECONOMIC GROWTH FUELED BY THE INVESTMENT BOOM IN CHINA HONG KONG'S ECONOMY IS EXTREMELY TIRED HE SAYS IN PARTICULAR HIGH INFLATION THREATENS TO EXHAUST LOCAL CONSUMER SPENDING MEANWHILE HONG KONG COMPANIES' EARNINGS GROWTH IS INCREASINGLY DEPENDENT ON CRAZY CHURNING IN THE PROPERTY MARKET HE SAYS THE COMBINATION MAKES CORPORATE HONG KONG PARTICULARLY VULNERABLE EVEN TO FEARS OF ANY CREDIT CRUNCH QUOTE RISING INTEREST RATES DO IMPLY THAT THE EARNINGS CYCLE IN HONG KONG WILL BE TIRING A BIT QUOTE WARNS ANDREW HALL RESEARCH DIRECTOR OF MORGAN GRENFELL ASIA SECURITIES H. K. LIMITED IT WILL BE INCREASINGLY DIFFICULT FOR COMPANIES TO GET TWENTY PERCENT TO THIRTY PERCENT COMPOUNDED EARNINGS GROWTH WE WILL HAVE TO GET USED TO COMPOUNDED EARNINGS GROWTH IN THE TEENS HE ADDS TOKYO STOCKS ROSE FRIDAY PARTLY BECAUSE OF ARBITRAGE LINKED BUYING DESPITE JAPANESE POLITICAL WRANGLING ABOUT TAX POLICY LONDON SHARES FELL SOCKED BY INTEREST RATE WORRIES AFTER THE FED TIGHTENED CREDIT WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED SIXTEEN POINT SIX FOUR DOWN ONE POINT SIX THREE OR ONE POINT THREE EIGHT PERCENT REFLECTING DROPS IN MARKETS IN ALL REGIONS REAL ESTATE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED FORTY SEVEN POINT EIGHT FIVE UP ZERO POINT FIVE FIVE OR ZERO POINT THREE SEVEN PERCENT WITH HKR INTERNATIONAL OF HONG KONG POSTING AN EIGHT POINT EIGHT TWO PERCENT GAIN IN ITS LOCAL CURRENCY COAL STOCKS TRAILED AT ONE HUNDRED FOUR POINT TWO FOUR DOWN FOUR POINT FIVE FIVE OR FOUR POINT ONE EIGHT PERCENT WITH CYPRUS AMAX OF THE U. S. SLIDING TEN POINT FOUR THREE PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH FELL SEVENTY FIVE POINT TWO ONE POINTS THURSDAY ROSE ONE HUNDRED TWENTY SIX POINT SIX ONE TO TWENTY THOUSAND THREE HUNDRED ONE POINT FOUR THREE ALSO THE INTRADAY HIGH IN TRADING MONDAY THE NIKKEI FELL TWO HUNDRED SIXTY TWO POINT FIVE THREE POINTS TO CLOSE THE MORNING SESSION AT TWENTY THOUSAND THIRTY EIGHT POINT NINE OH FRIDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT THREE HUNDRED SEVENTY MILLION SHARES DOWN FROM FIVE HUNDRED FORTY POINT NINE MILLION SHARES A DAY EARLIER GAINERS TOPPED LOSERS SIX HUNDRED NINE TO FOUR HUNDRED TWENTY TWO THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH LOST FOURTEEN POINT NINE THREE POINTS THURSDAY GAINED TWO POINT OH SEVEN TO ONE THOUSAND SIX HUNDRED FOURTEEN POINT EIGHT OH INVESTORS CONTINUED TO TAKE PROFITS FROM RECENT HUGE GAINS AND STOCKS FELL FURTHER DURING THE SESSION BECAUSE OF FUTURES LED TRADING REFLECTING JAPANESE POLITICAL UNCERTAINTIES ABOUT ECONOMY STIMULATING MOVES BEFORE ARBITRAGE LINKED BUYING AND DEALERS BUYING FOR THEIR OWN ACCOUNTS HELPED STOCKS RECOUP LOSSES AND END HIGHER IN LONDON THE F. T. S. E. ONE HUNDRED SHARE INDEX LOST SIXTEEN POINT ONE POINTS TO THREE THOUSAND FOUR HUNDRED SEVENTY FIVE POINT FOUR NEAR THE DAY'S LOWS THE F. T. THIRTY STOCK INDEX DECLINED TWENTY FOUR POINT EIGHT POINTS TO TWO THOUSAND SIX HUNDRED SIXTY NINE POINT TWO VOLUME WAS SEVEN HUNDRED EIGHTY FIVE POINT ONE MILLION SHARES COMPARED WITH ONE POINT OH NINE BILLION SHARES IN THE PREVIOUS SESSION SHARES OPENED LOWER AMID CAUTION ABOUT U. S. ECONOMIC DATA AND CLIMBED ON THE U. S. UNEMPLOYMENT REPORT THEN TUMBLED AFTER THE FED PUSHED UP SHORT TERM INTEREST RATES WALL STREET ALSO WAS VOLATILE INFLUENCING LONDON STOCKS PRESSURED TOO BY THE U. S. DOLLAR'S STRENGTHENING AGAINST THE GERMAN MARK WHICH COULD HURT CHANCES OF GERMANY LOWERING ITS INTEREST RATES AND ALLOWNG BRITAIN TO FOLLOW SUIT IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX DROPPED THIRTEEN POINT FOUR SEVEN POINTS TO TWO THOUSAND ONE HUNDRED THIRTY EIGHT POINT TWO FIVE IN TECHNICALLY DRIVEN TRADING AS MANY INVESTORS WERE SIDELINED DISAPPOINTED BY GERMANY'S DECISION THURSDAY TO LEAVE INTEREST RATES UNCHANGED IN HONG KONG STOCKS RALLIED TWO POINT SIX PERCENT LED BY THE BANKING SECTOR ON STRONG EARNINGS EXPECTATIONS IN MEXICO CITY PRICES INCHED UP TO ANOTHER NEW HIGH AFTER FALLING ON PROFIT TAKING RALLYING AND THEN RETREATING AS WALL STREET SANK 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END U. S. PHYSICAL THERAPY INCORPORATED SAID IT WILL OPEN TWO FREE STANDING OUTPATIENT CLINICS NEXT MONTH ONE IN ATLANTA AND THE OTHER IN PLANO TEXAS WITH THE TWO NEW CLINICS THE COMPANY SAID IT ALONG WITH PARTNERS WILL OPERATE TWENTY EIGHT OUTPATIENT CLINICS IN THIRTEEN STATES WHEN ELIZABETH CROW TOOK OVER AS EDITOR OF MADEMOISELLE LAST OCTOBER SHE FOUND HERSELF IN AN OFFICE THAT LOOKED LIKE A DOWNTOWN DISCO WITH A CHANDELIER BLUE WALLS AND RED VELVET CURTAINS NOW THE WALLS ARE WHITE AND THE SUNNY NEAT ROOM LOOKS LIKE AN OFFICE AGAIN IT'S A RADICAL CHANGE BACK TO A TRADITIONAL LOOK THE SAME SHIFT SHE IS MAKING IN THE MAGAZINE THE MARCH ISSUE WHICH HITS NEWSTANDS NEXT WEEK IS HER FIRST FULL EFFORT AS EDITOR IN CHIEF AND IT HARKS BACK TO MADEMOISELLE'S PAST AS A MAINSTREAM MAGAZINE FOR YOUNG WOMEN FOUNDED IN NINETEEN THIRTY FIVE MADEMOISELLE HAS LONG BEEN A KEY PROPERTY IN THE CONDE NAST STABLE OF GLOSSY LIFESTYLE MAGAZINES OWNED BY THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INCORPORATED ALONG WITH GLAMOUR VOGUE SELF G. Q. AND GOURMET MADEMOISELLE SUFFERED AN IDENTITY CRISIS OVER THE LAST YEAR HOWEVER AS MS. CROW'S SHORT LIVED PREDECESSOR GABE DOPPELT TRIED TO REMAKE IT INTO A HIP CUTTING EDGE FASHION AND LIFESTYLE MAGAZINE THE CHANGES RADICALLY ALTERED THE LOOK AND CONTENT OF THE MAGAZINE ALIENATING READERS ADVERTISERS AND CONDE NAST CHAIRMAN S. I. NEWHOUSE JUNIOR MS. DOPPELT LEFT HER POST LAST FALL AFTER ONLY NINE ISSUES ALTHOUGH MADEMOISELLE'S PAGES SHRANK ONLY TWO PERCENT IN NINETEEN NINETY THREE TO ONE THOUSAND TWO HUNDRED SEVENTY FIVE PAGES THE MAGAZINE'S PUBLISHER SAYS MS. DOPPELT'S OCTOBER AND NOVEMBER ISSUES SO TURNED OFF ADVERTISERS THAT AD PAGES FOR THE FIRST QUARTER OF NINETEEN NINETY FOUR FELL EIGHTEEN PERCENT PAGES ARE EXPECTED TO BE UP FOR APRIL MS. CROW SAYS SHE WANTS TO BOOST AD PAGES AT MADEMOISELLE WHICH TRAILS COSMOPOLITAN AND GLAMOUR BY HUNDREDS OF PAGES ANNUALLY MS. CROW HAS ABANDONED THE GRUNGE LOOK AND REBELLIOUS ONE THE MAGAZINE BOASTED UNDER MS. DOPPELT WHOSE FIRST ISSUE CAME OUT LAST MARCH INSTEAD OF ARTICLES ON LESBIANISM AND HAIR DYE AS A POSSIBLE CAUSE OF CANCER THERE ARE ARTICLES ON CELIBACY AND QUOTE GOING GOING BLONDE QUOTE INITIAL REACTIONS TO MS. CROW'S REMAKE ARE LARGELY POSITIVE AND SHE IS BEGINNING TO DRAW SOME NEW ADVERTISERS BUT THERE ARE SOME IN FASHION AND BEAUTY CIRCLES WHO FEAR SHE MAY ERR IN MAKING THE MAGAZINE TOO MASS MARKET FORMULAIC AND BLAND MS. CROW WHO IS FORTY SEVEN YEARS OLD COMPARED WITH MS. DOPPELT'S THIRTY THREE HAS HAD TO ENDURE SNOTTY TRADE MAGAZINE REPORTS THAT SHE'S TOO OLD AND FRUMPY TO KNOW WHAT HIP WOMEN IN THEIR TWENTIES WANT AND THERE WERE RUMORS WHICH SHE DENIES THAT MADEMOISELLE HAS LATELY HAD TROUBLE ATTRACTING TOP MODELS AND PHOTOGRAPHERS MS. CROW SAYS THE MAGAZINE MIGHT HAVE BEEN MORE HIP BEFORE BUT SHE THINKS IT MADE A LOT OF YOUNG WOMEN FEEL INSECURE WHEREAS SHE WANTS TO BE REASSURING SHE SAYS SHE HASN'T BANNED SUPER SHORT SKIRTS AND SEE THROUGH BLOUSES IN FASHION SPREADS BECAUSE SHE'S A PRUDE BUT BECAUSE YOUNG WOMEN IN FOCUS GROUPS SAY THESE ARE CLOTHES THEY WOULD NEVER WEAR TO MAKE THE MAGAZINE MORE RELEVANT AND PRACTICAL SHE HAS INCREASED THE NUMBER OF FIRST PERSON FEATURES AND ADDED SIX MONTHLY Q. AND A PAGES ON TOPICS FROM SEX TO MONEY I THINK THE REMAKE IS BRIGHTER MORE OPTIMISTIC SAYS ELLIOT LASKY VICE PRESIDENT MARKETING FOR MATRIX ESSENTIALS INCORPORATED A LINE OF BEAUTY PRODUCTS SOLD IN HAIR SALONS MATRIX IS ADVERTISING IN THE APRIL ISSUE ITS FIRST TIME IN THE MAGAZINE WE CONSIDERED ADVERTISING IN MADEMOISELLE BEFORE BUT THE CHANGES HELPED SWING OUR DECISION SAYS MR. LASKY BEFORE IT WAS TOO DOOM AND GLOOM AND DIDN'T HAVE AS STRONG A FOCUS ON BEAUTY SOME CURRENT ADVERTISERS HAVEN'T UPPED THEIR PAGES BUT SEEM FAVORABLY IMPRESSED BY MS. CROW'S ALTERED FOCUS TO GET TO THEIR GOAL OF TWO MILLION CIRCULATION FROM THE CURRENT ONE POINT ONE MILLION THEY HAVE TO BROADEN THE MAGAZINE SAYS ARIE KOPELMAN CHAIRMAN OF CHANEL S. A. QUOTE MY REACTION IS TO WAIT AND SEE HOW THEY DO BUT MS. CROW DOES SEEM TO HAVE A REAL VISION OF WHAT THE BOOK WILL LOOK LIKE AND BE ABOUT QUOTE MS. CROW'S TRACK RECORD INCLUDES A SUCCESSFUL RELAUNCH OF GRUNER AND JAHR U. S. A. PUBLISHING'S TEEN MAGAZINE YM WHICH GREW IN CIRCULATION FROM EIGHT HUNDRED THIRTY FIVE THOUSAND IN NINETEEN EIGHTY NINE TO ONE POINT NINE MILLION IN NINETEEN NINETY THREE AND SHE HAS THE SUPPORT OF MR. NEWHOUSE IN HER STRATEGY TO BOOST MADEMOISELLE'S FORTUNES SHORTLY AFTER SHE STARTED SAYS MS. CROW SHE TOLD MR. NEWHOUSE THAT SOME PEOPLE ARE ACTING LIKE MASS IS A DIRTY WORD IN RESPONSE TO HER PLANS TO BRING MADEMOISELLE BACK TO A MAINSTREAM AUDIENCE HE REPLIED SHE SAYS WELL IT SOUNDS GOOD TO ME ROSALIE J. WOLF FIFTY TWO YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION A NEW POSITION AT THIS ELECTRIC POWER PLANT COMPANY MS. WOLF WAS MOST RECENTLY MANAGING DIRECTOR AT BANKERS TRUST COMPANY'S MERCHANT BANKING OPERATION AND CO HEAD OF B. T. INVESTMENT PARTNERS INCORPORATED FOR GENERATIONS HISTORIANS AND SELF PROCLAIMED OBSERVERS OF THE AMERICAN SCENE HAVE HELD THE CONVICTION THAT THE WEST NOT ONLY THE ACTUAL RUGGED VASTNESS BEYOND THE MISSISSIPPI BUT ALSO THE VERY IDEA OF ALL THAT SPACE WAS ONE OF THE DEFINING ELEMENTS OF THE AMERICAN CHARACTER NOW COMES THE ARGUMENT THAT SIBERIA MORE VAST MORE RUGGED AND QUITE A BIT COLDER PLAYED THE SAME ROLE FOR RUSSIA THIS ARGUMENT IS AT THE CENTER OF QUOTE THE CONQUEST OF A CONTINENT SIBERIA AND THE RUSSIANS QUOTE RANDOM HOUSE FIVE HUNDRED TWELVE PAGES THIRTY DOLLARS W. BRUCE LINCOLN'S LATEST VOLUME ON RUSSIA MR. LINCOLN WHO HAS WRITTEN ON THE ROMANOVS AND THE RUSSIAN CIVIL WAR HAS PRODUCED SOMETHING OF A RUSSIAN ANALOGUE TO HOW THE WEST WAS WON THE SHORT ANSWER IS WITH DIFFICULTY THE REAL ANSWER IS NOT COMPLETELY THE SIZE AND SCALE OF SIBERIA ARE ALMOST UNIMAGINABLE IT STRETCHES FROM THE URALS TO THE BERING SEA AND ENCOMPASSES SOME TWO MILLION SQUARE MILES OF SPACE MORE THAN THE ENTIRE U. S. MR. LINCOLN DELIGHTS IN NOTING FOR EXAMPLE THAT LAKE BAIKAL DROPPED IN THE MIDDLE OF SIBERIA IS BIGGER THAN BELGIUM THE REGION INCLUDES A THIRD OF THE WORLD'S IRON A QUARTER OF ITS TIMBER DIVERSE AND MONOTONOUS SINISTER AND ROMANTIC RICH AND IMPOVERISHED SIBERIA TO THIS DAY REMAINS A VIRTUAL CONTINENT UNTO ITSELF IN WHICH NATURE AND HISTORY HAVE JUXTAPOSED AN ENDLESS ARRAY OF CONTRADICTIONS AND OPPOSITES HE WRITES THIS STORY INCLUDES GENGHIS KHAN WHO SENT THE MONGOLS WARRING INTO RUSSIA IVAN THE TERRIBLE WHO CONQUERED SIBERIA FOR RUSSIA PETER THE GREAT WHO SUPPORTED SCIENTIFIC EXPEDITIONS AND MINING ENTERPRISES AND MIKHAIL GORBACHEV WHOSE GLASNOST POLICY PROMPTED A NEW SENSE OF SIBERIAN NATIONALISM IT IS ALSO THE STORY OF MILLIONS OF SOULS WHO THEMSELVES WERE CONQUERED BY SIBERIA VAST RICHES AND GREAT MISERY OFTEN INTERTWINED MARK THIS REGION THE WEALTH OF KOLYMA WHOSE GOLD FIELDS CREATED LEGENDS WAS MINED BY SLAVE LABORERS UNTOLD HUNDREDS OF WHOM DIED DIGGING WITH THEIR HANDS TODAY SIBERIA STILL HAS THE MINERALS BUT IS NO LONGER A VAST PRISON YARD NOTHING ABOUT SIBERIA HAS EVER ENCOURAGED ANYONE TO THINK SMALL THE LAND WAS SO BIG AND THE DISTANCES SO GREAT THAT EARLY FUR TRADERS COULD COUNT ON ONLY TWO SIBERIAN TRIPS A DECADE OR ABOUT HALF A DOZEN A LIFETIME LATER THE CENTRAL PLANNERS OF THE KREMLIN ESTABLISHED COLLECTIVE FARMS IN SIBERIA THAT WERE SO BIG THEY AVERAGED TWO HUNDRED FIFTY SQUARE MILES THAT WORKERS HAD TO CAMP OUT FOR WEEKS AT A TIME SO THEY COULD BE WITHIN A DAY'S WALK OF THEIR CROPS THE CONSTRUCTION OF THE TRANS SIBERIAN RAILROAD INVOLVED SEVENTY THOUSAND MEN WHO PUSHED AROUND SEVENTY SEVEN MILLION CUBIC FEET OF EARTH EVEN THE INDUSTRIAL DISPUTES WERE OUTSIZED THE LENA GOLDFIELDS WORKERS WHO LIVED IN ICY SQUALOR WHILE MINING SOME FORTY TONS OF GOLD A YEAR COURTED TRAGEDY IN THEIR NINETEEN TWELVE STRIKE FOR BETTER WORKING CONDITIONS SOME TWO HUNDRED FIFTY MEN WERE KILLED ANOTHER TWO HUNDRED SEVENTY WOUNDED PUBLIC HEALTH OFFICIALS LOOKING IN ON THE TRANS SIBERIAN RAILROAD FOUND THAT IT WAS IMPOSSIBLE TO LIVE UNDER SUCH CONDITIONS AND RETAIN ANY SHRED OF HUMAN DIGNITY PETER THE GREAT AND STALIN KHRUSHCHEV AND BREZHNEV ENVISAGED SIBERIA AS A BASE FOR BUILDING A HUGE INDUSTRIAL MACHINE CZARS AND COMMISSARS SAW IT AS THE PERFECT PRISON THE PRICE PROVED HORRIFYING ENVIRONMENTAL SCARS SICK CHILDREN MILLIONS OF TONS OF INDUSTRIAL POLLUTANTS AND A STANDARD OF LIVING THAT WAS SCARCELY BETTER THAN IN THE DAYS OF THE CZARS THE PRICE OF SIBERIA'S ROLE AS PRISON TO A NATION IS HARDER TO QUANTIFY YET PROBABLY IMMEASURABLY HIGHER BANISHMENT TO SIBERIA USUALLY MEANT DEATH SOONER OR LATER IN CZARIST DAYS PRISONERS SOME OF WHOM WERE BRANDED ON THEIR FACES WERE BEATEN WITH WHIPS OUTFITTED WITH LEAD WEIGHTED LASHES THEIR NUMBERS INCLUDED A SMALL PERCENTAGE OF WOMEN OFTEN ABUSED AND RAPED DOSTOEVSKI HIMSELF A VETERAN OF THE CAMPS WROTE THAT THEY PRODUCED COMPLETE MORAL DEGRADATION ABSOLUTE DEPRAVITY AND INSOLENT BASENESS MR. LINCOLN ESTIMATES THAT ONE ADULT MALE IN TEN IN THE OLD SOVIET UNION WAS IN LABOR CAMPS DURING THE STALIN YEARS SOME PRISONERS WERE WORKED TO DEATH SOME SIMPLY VEGETATED MINERALS WERE PULLED FROM THE EARTH TREES FELLED AND ROADS SCULPTED BUT MEN DIED AT ASTONISHING RATES THERE WAS AND IS SOMETHING ABOUT THE LAND OF SIBERIA THAT BRINGS OUT THE BRUTAL IN MEN PERHAPS IT IS THE COLD PERHAPS THE EMPTINESS PERHAPS EVEN THE FEELING THAT IT IS SO VERY FAR FROM CIVILIZATION IT WAS ALWAYS THIS WAY OFFICERS OF THE CZARS DELIGHTED IN TORTURING NATIVES QUOTE AS A MATTER OF COURSE QUOTE ACCORDING TO MR. LINCOLN ONE MILITARY GOVERNOR OF IAKUTSK HANGED TWENTY THREE CHIEFS RUSSIA TODAY REMAINS AN UNFINISHED COUNTRY A LOOK AT THE NEWSPAPER WILL PROVE THAT AND SIBERIA IS SO IMPORTANT TO THE RUSSIAN PSYCHE THAT THE NATION WILL NOT BE FINISHED UNTIL SIBERIA IS BROUGHT TO HEEL THE SCARS OF THE PRISONS REMOVED THE ENVIRONMENTAL RAVAGES HEALED MR. LINCOLN IS RIGHT IN BELIEVING THAT RUSSIA'S GREATEST BATTLE IS NOT YET OVER NOR IS IT CLOSE TO BEING WON MR. SHRIBMAN IS WASHINGTON BUREAU CHIEF OF THE BOSTON GLOBE ROGERS COMMUNICATIONS INCORPORATED DELAYED ITS PLAN TO MAKE A MULTIBILLION DOLLAR BID TO ACQUIRE MACLEAN HUNTER LIMITED CITING QUOTE UNCERTAINTIES QUOTE RELATED TO A BLOCK OF THE TARGET COMPANY'S STOCK INDIRECTLY HELD BY MACLEAN HUNTER MACLEAN HUNTER MEANWHILE SAID IT IS TALKING TO SEVERAL POSSIBLE BUYERS ABOUT MANY PARTS OF MACLEAN HUNTER RONALD OSBORNE PRESIDENT AND CHIEF EXECUTIVE OFFICER DECLINED TO NAME THEM OR SAY IF THE CABLE TELEVISION AND PUBLISHING COMPANY HAS DISCUSSED AN OUTRIGHT TAKEOVER BY A COMPANY OTHER THAN ROGERS ROGERS COMMUNICATIONS HAD BEEN EXPECTED TO ANNOUNCE TERMS OF AN OFFER AFTER A BOARD MEETING FRIDAY EARLIER LAST WEEK ROGERS HAD SAID IT PLANNED TO MAKE AN OFFER FOR MACLEAN IN A BID TO CONTROL A THIRD OF THE CANADIAN CABLE TELEVISION MARKET AT THE TIME ROGERS WHICH ALSO HAS INTERESTS IN TELECOMMUNICATIONS SAID IT WOULDN'T OFFER TO BUY THE THIRTY SIX POINT THREE MILLION SHARES OR SEVENTEEN PERCENT STAKE INDIRECTLY HELD BY MACLEAN HUNTER AT CURRENT MARKET PRICES A PURCHASE OF ALL MACLEAN HUNTER STOCK INCLUDING THOSE THIRTY SIX POINT THREE MILLION SHARES AND THE FOURTEEN POINT NINE MILLION SHARES ROGERS CAN PURCHASE FROM ITS OWN PRESIDENT EDWARD ROGERS WOULD HAVE A VALUE OF ABOUT THREE POINT SIX EIGHT BILLION CANADIAN DOLLARS TWO POINT SEVEN SEVEN BILLION U. S. DOLLARS IF ROGERS DOESN'T BUY THE THIRTY SIX POINT THREE MILLION SHARES THE REST OF MACLEAN HUNTER WOULD BE VALUED AT THREE POINT OH FOUR BILLION CANADIAN DOLLARS ROGERS WHOSE BOARD FRIDAY APPROVED IN PRINCIPLE A STRATEGIC MERGER WITH MACLEAN SAID IT WILL APPLY TO THE ONTARIO SECURITIES COMMISSION FOR CONFIRMATION THAT IT CAN PROCEED WITH A BID FOR MACLEAN HUNTER WITHOUT OFFERING TO BUY THE THIRTY SIX POINT THREE MILLION SHARES COMMISSION CHAIRMAN ED WAITZER SAID A HEARING IS LIKELY BUT HE DIDN'T KNOW HOW LONG IT WOULD LAST MACLEAN HUNTER HAS HELD THE SHARES INDIRECTLY THROUGH A SUBSIDIARY SINCE THE MID NINETEEN SEVENTIES WHEN A FORMER CONTROLLING SHAREHOLDER DONALD HUNTER SET UP THE ARRANGEMENT TO ADD STABILITY IN THE EVENT OF A TAKEOVER BID SAID MR. OSBORNE THE ARRANGEMENT CANNOT PREVENT A TAKEOVER IT WAS INTENDED TO BUY TIME FOR MACLEAN HUNTER'S MANAGEMENT AND DIRECTORS TO EXPLORE OPTIONS MR. OSBORNE SAID ROGERS COMMUNICATIONS VICE CHAIRMAN PHILIP LIND WOULDN'T SAY IF THE COMPANY WOULD STILL BID FOR MACLEAN HUNTER IF IT ISN'T ALLOWED TO EXCLUDE THE SHARES HE WOULDN'T ELABORATE ON WHY ROGERS WON'T PROCEED UNDER CURRENT CIRCUMSTANCES BUT ONE PERSON FAMILIAR WITH THE SITUATION SAID ROGERS IS RELUCTANT PARTLY BECAUSE IT IS WORRIED THAT IT COULD BE STUCK WITH A SIZABLE CAPITAL GAINS TAX BILL ON THE SHARES SUCH A BILL COULD COVER GAINS SINCE THE SHARES WERE FIRST PUT IN THE HANDS OF THE MACLEAN HUNTER UNIT MACLEAN HUNTER'S STOCK PRICE HAS JUMPED THREE CANADIAN DOLLARS AND SEVENTY FIVE CENTS OR TWENTY SEVEN PERCENT TO SEVENTEEN CANADIAN DOLLARS AND FIFTY CENTS IN HEAVY TRADING ON THE TORONTO STOCK EXCHANGE SINCE ROGERS' PLANS WERE FIRST ANNOUNCED WEDNESDAY WHILE ROGERS' SHARES HAVE SKIDDED TWO POINT THREE SEVEN FIVE CANADIAN DOLLARS OR ELEVEN PERCENT TO NINETEEN POINT EIGHT SEVEN FIVE CANADIAN DOLLARS ANALYSTS SAID INVESTORS ARE SPECULATING THAT OTHER COMPANIES MIGHT BID FOR MACLEAN HUNTER BUT ADDED THAT THE LIST IS SHORT ANY CHALLENGER FOR MACLEAN HUNTER WOULD NEED TO HAVE DEEP POCKETS AND BE CANADIAN BECAUSE OF REGULATIONS SOME OF THE POTENTIAL SUITORS FOR MACLEAN HUNTER MENTIONED BY ANALYSTS INCLUDE POWER CORPORATION OF CANADA A MEDIA CONCERN FLUSH WITH CASH AND B. C. E. INCORPORATED A HOLDING COMPANY THAT OWNS BELL CANADA THE COUNTRY'S LARGEST TELEPHONE COMPANY SPOKESMEN FOR POWER CORPORATION AND B. C. E. DECLINED TO COMMENT ANALYSTS ALSO SUGGESTED SEAGRAM COMPANY A BEVERAGE CONCERN WITH A MINORITY STAKE IN MEDIA GIANT TIME WARNER INCORPORATED OFFICIALS OF THOSE COMPANIES WEREN'T AVAILABLE FOR COMMENT A FEW COMPANIES INCLUDING MONTREAL MEDIA CONCERN QUEBECOR INCORPORATED AND TORONTO NEWSPAPER CONCERN HOLLINGER INCORPORATED SAID THEY WOULD CONSIDER BUYING SOME MEDIA ASSETS ROGERS COMMUNICATIONS FRIDAY REPORTED A FOURTH QUARTER LOSS OF ONE HUNDRED SIXTY THREE POINT THREE MILLION CANADIAN DOLLARS OR ONE CANADIAN DOLLAR AND TWO CENTS A SHARE INCLUDING SOME ONE TIME CHARGES COMPARED WITH A LOSS OF SEVENTY POINT TWO MILLION CANADIAN DOLLARS OR FORTY SEVEN CANADIAN CENTS A SHARE IN THE YEAR EARLIER PERIOD ITS OPERATING PROFIT HOWEVER MORE THAN TRIPLED MOSTLY DUE TO COST CUTTING REVENUE ALSO ROSE ELEVEN PERCENT TO THREE HUNDRED FIFTY FIVE POINT NINE MILLION CANADIAN DOLLARS FROM THREE HUNDRED TWENTY POINT SEVEN MILLION CANADIAN DOLLARS THE COMPANY HAD TWO POINT EIGHT BILLION CANADIAN DOLLARS IN LONG TERM DEBT AS OF DECEMBER THIRTY FIRST TWO CREDIT RATING AGENCIES SAID FRIDAY THEY ARE REVIEWING THEIR RATINGS ON ROGERS COMMUNICATIONS IN LIGHT OF THE DEBT THE COMPANY WOULD TAKE IN AN ACQUISITION THE LITTLE ADS FILL THE BACK PAGES OF NATIONAL REVIEW AND THE AMERICAN SPECTATOR THERE ARE BUMPER STICKERS THAT SAY QUOTE HONK IF YOU HATE CLINTON OR MY CHOICE ABORT CLINTON OR NEVER EVER EVER EVER TRUST A DRAFT DODGER THREE DOLLARS EACH TWO FOR FIVE DOLLARS T. SHIRTS ARE POPULAR TOO ONE OF THEM SHOWS THE PRESIDENTIAL SEAL AND THE WORDS SMOKE DOPE DODGE DRAFT CHEAT WIFE BECOME PRESIDENT THE NEW AMERICAN WAY SIXTEEN DOLLARS AND NINETY FIVE CENTS PLUS POSTAGE AND HANDLING SOMETHING CURIOUS IS GOING ON OUT THERE WHILE BILL CLINTON CELEBRATES AN ECONOMIC RECOVERY GLORIES IN SIXTY PERCENT JOB APPROVAL RATINGS IN THE POLLS AND GLOATS IN HIS STATE OF THE UNION ADDRESS OVER THE END OF LEGISLATIVE GRIDLOCK AN ANGRY SULLEN MINORITY CONTINUES TO VIEW HIM WITH EXTREME DISTASTE YOU GET SO MUCH DEEP HATRED OUT THERE SAYS BRIAN LAMB CHIEF EXECUTIVE OFFICER AND MODERATOR FOR C. SPAN CABLE TELEVISION'S PUBLIC AFFAIRS NETWORK IT COMES THROUGH IN THEIR ANGRY VOICES WHEN THEY SPEAK OUT ON C. SPAN'S DAILY VIEWER CALL IN SHOWS NOTHING IS GOING TO CHANGE THESE PEOPLE QUOTE EVERY PRESIDENT IN THE COUNTRY'S HISTORY HAS MANAGED TO MAKE SOME VOTERS ANGRY BUT WIDESPREAD HATRED IS FAIRLY UNUSUAL JIMMY CARTER NEVER STIRRED VERY MUCH HATRED PARTLY BECAUSE HE WAS SEEN AS INEFFECTIVE LYNDON JOHNSON DIDN'T INSPIRE VENOMOUS HATRED UNTIL THE LAST MONTHS HE WAS IN OFFICE AND THAT WAS CAUSED BY HIS PROSECUTION OF AN UNPOPULAR WAR IN VIETNAM THOSE CHANTS OF HEY HEY L. B. J. HOW MANY KIDS DID YOU KILL TODAY CAME MOSTLY FROM THE MOUTHS OF THE CHILDREN OF REGISTERED DEMOCRATS PEOPLE DISAGREED WITH BOTH RONALD REAGAN AND GEORGE BUSH BUT NOT VERY MANY PEOPLE REALLY HATED EITHER ONE OF THEM BUT BILL CLINTON AND HIS ACTIVIST WIFE HILLARY RODHAM CLINTON HAVE AROUSED SOMETHING DEEPER YOU CAN HEAR IT ON TALK SHOWS AND CONVERSATIONS WITH FRIENDS YOU CAN SEE IT IN LETTERS FROM NEWSPAPER READERS WHY DO SO MANY PEOPLE SO INTENSELY DISLIKE THE CLINTONS WHITE HOUSE COMMUNICATIONS DIRECTOR MARK GEARAN SAYS SOME PEOPLE LOATHE HIM FOR THE SAME REASON THAT OTHERS LOVE HIM HE HAS COME TO WASHINGTON WITH AN AGENDA OF CHANGE AND IN DOING SO HAS TAKEN ON SOME ENTRENCHED INTERESTS BUT THE EXPLANATION IS PROBABLY A LITTLE MORE COMPLICATED THAN THAT SOME OF IT IS SURELY CULTURAL AS THE PRESIDENCY'S FIRST BABY BOOMER WITH ALL THAT CONNOTES FROM VIETNAM PROTESTS TO MARIJUANA MR. CLINTON IS CARRYING THE BAGGAGE OF AN ENTIRE GENERATION ONE THAT MANY NONBOOMERS VIEW WITH A JAUNDICED EYE THEN THERE IS MRS. CLINTON SHE STOKES THE FIRES ESPECIALLY AMONG OLDER VOTERS ACCUSTOMED TO TRADITIONAL FAMILY VALUES PEOPLE WHO ARE ANGRY ABOUT THE PRESIDENT USUALLY ARE JUST AS ANGRY ABOUT THE FIRST LADY IT'S THIS WHOLE FEMINIST THING SAYS GEORGETOWN UNIVERSITY POLITICAL SCIENTIST JAMES REICHLEY THEY'RE JUST NOT COMFORTABLE WITH THIS LEADERSHIP ROLE SHE HAS TAKEN AT THE WHITE HOUSE BUT THERE'S MORE TO IT THAN THAT LIKE HIS PREDECESSORS FRANKLIN DELANO ROOSEVELT AND RICHARD NIXON BILL CLINTON AROUSES SOMETHING IN MANY VOTERS THAT MAKES STRONG DISLIKE TURN TO PASSIONATE HATRED IN MR. ROOSEVELT'S CASE MANY AMERICANS WORRIED ABOUT THEIR POCKETBOOKS AND THEIR FUTURE IN MR. NIXON'S CASE THEY WORRIED ABOUT WHETHER THEY COULD TRUST THEIR PRESIDENT MR. CLINTON IN A WAY DRAWS ON BOTH TRADITIONS F. D. R. DID AROUSE REAL HATRED A CLASSIC NINETEEN THIRTY SIX NEW YORKER CARTOON BY PETER ARNO SUMMED IT UP IT SHOWS TWO WELL DRESSED COUPLES STROLLING DOWN THE STREET ON THE WAY TO THE NEWS REEL THEATER ONE OF THESE TOFFS CALLS OUT TO FRIENDS COME ALONG WE'RE GOING TO THE TRANS LUX TO HISS ROOSEVELT MR. ROOSEVELT ANGERED WELL TO DO REPUBLICANS BY CALLING THEM QUOTE ECONOMIC ROYALISTS QUOTE REPRESENTING THE QUOTE FORCES OF SELFISHNESS QUOTE I WELCOME THEIR HATRED F. D. R. GLOATED AS HE PLAYED HIS OWN GAME OF CLASS WARFARE MUCH OF THE HATRED STEMMED FROM FEAR FEAR THAT F. D. R. WAS A POLITICAL MASTERMIND AND THAT HE REALLY WAS INTENT ON MAKING SWEEPING CHANGES IN THE WAY THE COUNTRY WAS STRUCTURED THERE'S A LITTLE OF THAT IN THE THINKING OF PEOPLE WHO CONDEMN MR. CLINTON TOO PEOPLE WORRIED ROOSEVELT MIGHT PULL IT OFF SAYS RICHARD VIGUERIE THE CONSERVATIVE DIRECT MAIL SPECIALIST WE SEE THIS GUY AS A SERIOUS PLAYER TOO AND WE WORRY HE MIGHT SUCCEED IN HIS CORE BELIEF EXPANDING THE ROLE OF THE FEDERAL GOVERNMENT G. O. P. POLLSTER TONY FABRIZIO WARNS THAT MR. CLINTON IS IN A PERFECT POSITION TO CO OPT TRADITIONAL REPUBLICAN ISSUES ESPECIALLY CRIME AND WELFARE REFORM HE URGES HIS PARTY TO WAKE UP TO THE CLINTON PERIL BEFORE IT'S TOO LATE BUT THE HATRED OF MR. CLINTON IS EQUALLY REMINISCENT OF THE WAY MANY AMERICANS FELT ABOUT RICHARD NIXON FROM THE VERY BEGINNING A SIGNIFICANT NUMBER OF AMERICANS DESPISED HIM IT HAD LITTLE TO DO WITH HIS POLICIES HE WAS AFTER ALL SOMETHING OF A POLITICAL PRAGMATIST AND NOT MANY PEOPLE BELIEVED HE WANTED TO RESTRUCTURE AMERICAN SOCIETY THEY JUST DISLIKED HIM PERSONALLY AND THEY NEVER DID TRUST HIM THE FEELING WAS SUMMED UP IN THE QUESTION WOULD YOU BUY A USED CAR FROM THIS MAN PEOPLE MOSTLY DEMOCRATS CALLED MR. NIXON QUOTE TRICKY QUOTE PEOPLE MOST OF THEM REPUBLICANS CALL MR. CLINTON SLICK IF MR. CLINTON ISN'T QUITE THE DEMOCRATIC RICHARD NIXON THERE IS SOME COMMON GROUND HERE SOME PEOPLE SAY IT'S A QUESTION OF TRUST AND CREDIBILITY AND IT LIES OUT THERE WAITING FOR HIM SHOULD THE TIME EVER COME WHEN VOTERS BEGIN TO REJECT HIS REFORM AGENDA I THINK THERE'S A SENSE AMONG A LOT OF PEOPLE THAT HE'S ILLEGITIMATE SAYS VIN WEBER A FORMER G. O. P. CONGRESSMAN AND NOW A LEADER OF A CONSERVATIVE ADVOCACY GROUP THESE PEOPLE THINK THE CHARACTER ISSUE SHOULD HAVE DISQUALIFIED HIM IN THE FIRST PLACE DURING THE NINETEEN NINETY TWO ELECTION RIGHT NOW MR. CLINTON IS RIDING FAIRLY HIGH IN THE PUBLIC OPINION POLLS DESPITE THE CONTROVERSY SURROUNDING HIS INVESTMENTS IN THE WHITEWATER DEVELOPMENT COMPANY IN ARKANSAS THAT HAS NOW LED TO THE APPOINTMENT OF A SPECIAL COUNSEL BUT NO MATTER HOW HIGH HIS APPROVAL RATING CLIMBS THE DOUBTS ABOUT HIM PERSIST IN THE LATEST WALL STREET JOURNAL SLASH N. B. C. NEWS POLL ONLY THIRTY FIVE PERCENT OF AMERICANS ARE VERY CONFIDENT THAT MR. CLINTON HAS THE RIGHT SET OF PERSONAL CHARACTERISTICS TO BE PRESIDENT DOWN FROM FIFTY PERCENT A YEAR EARLIER AND ONLY THIRTY THREE PERCENT DOWN FROM FIFTY PERCENT GIVE HIM HIGH MARKS FOR HIS ETHICAL AND MORAL VALUES QUOTE IT'S ALWAYS BEEN A PROBLEM FOR CLINTON QUOTE SAYS PAUL GREENBERG EDITOR OF THE EDITORIAL PAGE OF THE ARKANSAS DEMOCRAT GAZETTE IN LITTLE ROCK AND A LONG TIME CRITIC OF THE PRESIDENT HERE UNLIKE NIXON YOU HAVE THIS GREAT SALESMAN WONDERFUL IN THESE ONE ON ONE TELEVISION APPEARANCES BUT THE GUY HAS NO TRACTION HE'S APT TO CHANGE HIS MIND ABOUT ALMOST ANYTHING THE NEXT DAY HE'S JUST SO CASUAL ABOUT HIS PERSONAL AND POLITICAL OBLIGATIONS SOME ANALYSTS BELIEVE THIS SEETHING ANGER WILL BOIL OVER AT THE POLLING BOOTHS IN THE OFF YEAR ELECTIONS IN NOVEMBER PEOPLE WHO ARE MAD TURN OUT TO VOTE SAYS MR. WEBER AND A LOT OF PEOPLE ARE REALLY MAD SOME OF THE COMMENTS I HEAR ARE JUST AMAZING IT'S NOT GOING TO GO AWAY WHETHER IT DOES OR NOT THERE IS ONE GROUP THAT MUST BE THANKING ITS LUCKY STARS FOR MR. CLINTON THOSE WHO MAKE AN INDUSTRY OUT OF BASHING HIM THE AMERICAN SPECTATOR REPORTS ITS CIRCULATION HAS CLIMBED TO TWO HUNDRED FIFTY ONE THOUSAND FROM THIRTY FIVE THOUSAND IN EARLY NINETEEN NINETY TWO NATIONAL REVIEW REPORTS A SURGE FROM ONE HUNDRED FIFTY SEVEN THOUSAND TO TWO HUNDRED FORTY THOUSAND MEANWHILE THE REPUBLICAN NATIONAL COMMITTEE SAYS THAT IN NINETEEN NINETY THREE IT RAISED THIRTY MILLION DOLLARS IN INDIVIDUAL CONTRIBUTIONS OF ONE HUNDRED DOLLARS OR LESS SEVENTY EIGHT PERCENT OF ALL THE MONEY IT COLLECTED SMALL CONTRIBUTIONS WERE UP SHARPLY FROM NINETEEN NINETY TWO A PRESIDENTIAL ELECTION YEAR AT THE AMERICAN CONSERVATIVE UNION WHERE MEMBERSHIP HAS SOARED FROM THIRTY THOUSAND ON THE EVE OF MR. CLINTON'S INAUGURATION TO FOUR HUNDRED FIFTY THOUSAND NOW PRESIDENT DAVID KEENE SAYS SIMPLY QUOTE HE HAS BEEN A GODSEND QUOTE THE BIG THREE AUTO MAKERS ARE ESCALATING THEIR CAMPAIGN TO PERSUADE CLEAN AIR REGULATORS IN CALIFORNIA AND THE NORTHEAST TO BACK AWAY FROM A NINETEEN NINETY EIGHT DEADLINE FOR AUTO MAKERS TO MASS PRODUCE ELECTRIC CARS GENERAL MOTORS CORPORATION PRESIDENT JOHN F. SMITH JUNIOR AND FORD MOTOR COMPANY CHAIRMAN ALEXANDER TROTMAN IN SEPARATE APPEARANCES HERE LAST WEEK SAID THE AUTO INDUSTRY CAN'T MEET THE NINETEEN NINETY EIGHT DEADLINE MR. SMITH ARGUED THAT THE MANDATE SHOULD BE SUSPENDED UNTIL THE INDUSTRY PRODUCES BETTER BATTERY TECHNOLOGY AT THE SAME TIME THE TWO AUTO EXECUTIVES SAID THE BIG THREE STILL ARE LOOKING FOR A WAY TO COLLABORATE ON ELECTRIC VEHICLE PRODUCTION SHOULD THEIR LOBBYING FAIL LAST YEAR IT APPEARED THAT PROPOSAL HAD DIED AMID BICKERING AMONG RIVAL FACTIONS AT G. M. FORD AND CHRYSLER CORPORATION THE COMMENTS BY MESSRS SMITH AND TROTMAN SIGNAL THAT DETROIT'S BIG THREE ARE DETERMINED TO FIGHT PLANS BY CALIFORNIA AND TWELVE NORTHEASTERN STATES TO FORCE SALES OF SO CALLED QUOTE ZERO EMISSION QUOTE VEHICLES WITHIN FOUR YEARS WE DON'T HAVE THE KNOW HOW TO GET THERE WITH A VEHICLE THAT CUSTOMERS WILL PAY FOR MR. TROTMAN SAID DECLARING FORD WILL FIGHT TO ROLL BACK THE NINETEEN NINETY EIGHT CALIFORNIA DEADLINE MR. SMITH TOOK A SOFTER LINE SUGGESTING A DEAL THAT WOULD RESULT IN ELECTRIC VEHICLES BUT LATER MR. SMITH SAID HE WANTS TO MEET WITH CALIFORNIA'S AIR RESOURCES BOARD SO THAT HE CAN CONVINCE THE POWERFUL REGULATORY AGENCY THAT G. M.'S BEST ELECTRIC VEHICLE THE IMPACT WON'T MEET MOST CONSUMER NEEDS UNTIL A NEW GENERATION OF BATTERY TECHNOLOGY EMERGES NEW BATTERIES AREN'T LIKELY TO EMERGE BEFORE NINETEEN NINETY EIGHT THE YEAR THAT THE REGULATORY BOARD WANTS AUTO MAKERS TO BEGIN SELLING SUCH ZERO EMISSION VEHICLES MR. SMITH SAID THERE OUGHT TO BE A WAY OF TYING THIS ELECTRIC VEHICLE MANDATE TO A SECOND GENERATION OF BATTERIES MR. SMITH SAID WE STILL NEED MAJOR BREAKTHROUGHS BEFORE THE ELECTRIC VEHICLE CAN BE SUSTAINED IN THE MARKETPLACE MR. SMITH ALSO SUGGESTED THAT A MANDATE TO MAKE ZERO EMISSION VEHICLES COULD BE TIED TO THE SUCCESS OF THE CLINTON ADMINISTRATION'S SO CALLED SUPER CAR INITIATIVE WITH THE BIG THREE AND THE AUTO MAKERS' TWO HUNDRED SIXTY MILLION DOLLARS U. S. ADVANCED BATTERY CONSORTIUM A JOINT RESEARCH PROGRAM WITH THE ELECTRIC UTILITY INDUSTRY AND THE DEPARTMENT OF ENERGY AS PROUD AS WE ARE OF THE IMPACT AND ALL THE RAVE REVIEWS IT HAS RECEIVED WE THINK WE CAN MAKE THE ELECTRIC VEHICLE MORE PRACTICAL AND LESS COSTLY IF GIVEN MORE TIME MR. SMITH SAID GENERALLY AUTO MAKERS EXPECT ELECTRIC CARS TO COST THOUSANDS MORE THAN CONVENTIONAL VEHICLES WHETHER MR. SMITH'S PROPOSAL WILL WIN A FOLLOWING AMONG SKEPTICAL REGULATORS IS UNCERTAIN WHAT'S CLEAR IS THAT DETROIT'S EFFORTS TO DERAIL THE ELECTRIC CAR BANDWAGONS IN CALIFORNIA AND THE NORTHEAST HAVEN'T WORKED SO FAR DESPITE HEAVY LOBBYING REGULATORS IN TWELVE NORTHEASTERN STATES AND THE DISTRICT OF COLUMBIA LAST WEEK VOTED TO PUSH AHEAD WITH A REGIONAL PLAN TO ADOPT CALIFORNIA'S STRICT PROGRAM FOR REDUCING VEHICLE EMISSIONS INCLUDING ITS ZERO EMISSIONS COMPONENT SHOULD THAT PROPOSAL BECOME LAW AUTO MAKERS WOULD HAVE TO MARKET EMISSION FREE VEHICLES SUCH AS ELECTRIC CARS FOR NEARLY HALF OF THE NATION'S VEHICLE MARKET THE CONSENSUS AMONG AUTO MAKERS INCLUDING JAPANESE MANUFACTURERS IS THAT THE INDUSTRY CAN'T MEET THE REGULATORY DEMANDS WITH AVAILABLE TECHNOLOGY IF AUTO MAKERS ARE FORCED TO MEET THE NINETEEN NINETY EIGHT MANDATE MR. TROTMAN SAID THE RESULT WILL BE EXPENSIVE UNDER PERFORMING VEHICLES THAT CUSTOMERS WON'T BUY QUOTE YOU CAN'T MANDATE TECHNOLOGY QUOTE MR. TROTMAN SAID PULL UP YOUR CHAIR OR COUCH PENNY PINCHERS AND SPENDTHRIFTS YOUR MONEY THERAPIST IS LISTENING WHEN DIANNE AND BOB SMITH WERE FIRST MARRIED THEY SHARED A CHECKING ACCOUNT BUT THE WEEKLY BALANCING OF THE CHECKBOOKS TRANSFORMED THEIR HOME INTO A MINEFIELD FINALLY THE ANNAPOLIS MARYLAND COUPLE TURNED TO OLIVIA MELLAN A WASHINGTON BASED MONEY THERAPIST TODAY THE SMITHS SAY THEIR MONEY TROUBLES HAVE BEEN SOLVED BY THE TALKING CURE AROUND THE COUNTRY A GROWING NUMBER OF THERAPISTS ARE TREATING PEOPLE WHO SUFFER FROM QUOTE MONEY NEUROSIS QUOTE OR FINANCIAL DYSFUNCTION PEOPLE ARE INCREASINGLY AWARE OF HOW MONEY OR LACK OF IT CAN AFFECT THEIR LIVES SAYS THE PSYCHOLOGIST JOYCE BROTHERS THE DEMAND FOR HELP IN OVERCOMING MONEY PROBLEMS CERTAINLY KEEPS OUR OFFICES FULL SAYS ROBERT R. BUTTERWORTH A LOS ANGELES BASED CLINICAL PSYCHOLOGIST MONEY PROBLEMS OFTEN HAVE EMOTIONAL CAUSES SAYS DAVID KRUEGER A HOUSTON PSYCHIATRIST WHO TREATS SOME FINANCIAL DISORDERS MONEY ALONG WITH FOOD AND SEX ARE THE MOST COMMON PLACES WHERE EMOTIONAL ISSUES HITCHHIKE AND LIKE FOOD YOU CAN'T SIMPLY GO COLD TURKEY ON MONEY MONEY ALSO TAKES ON SYMBOLIC MEANINGS SOME PEOPLE FOR EXAMPLE THINK OF IT AS BEING DIRTY WHILE FOR OTHERS IT SYMBOLIZES FREEDOM SECURITY OR POWER MS. MELLAN TRACED THE SMITHS' MONEY TENSIONS TO MS. SMITH'S FATHER WHO USED TO MAKE HER APPLY FOR HER ALLOWANCE BY PAINSTAKINGLY ACCOUNTING FOR HOW SHE WOULD SPEND IT SO A SIMPLE INQUIRY FROM HER HUSBAND TURNED INTO AN EMOTIONALLY CHARGED DEBATE ABOUT CONTROL AND INDEPENDENCE THE SOLUTION SEPARATE CHECKING ACCOUNTS NOW MS. SMITH SIMPLY WRITES A CHECK TO HER HUSBAND FOR HER PART OF THE BILLS MONEY MAY NOT BE THE PRIMARY CAUSE OF PROBLEMS BUT WHEN YOU START TALKING TO PEOPLE ABOUT CONFLICT IN RELATIONSHIPS IT'S REALLY UP IN THE TOP THREE SAYS DOCTOR BUTTERWORTH ALL KINDS OF PEOPLE FROM ALL KINDS OF BACKGROUNDS SEEK MONEY THERAPY CHRISTOPHER MOGIL A BOSTON BASED COUNSELOR PRIMARILY TREATS PEOPLE WITH INHERITED WEALTH ONE CLIENT HAD INHERITED ONE HUNDRED MILLION DOLLARS AND WAS INTERESTINGLY ENOUGH SHAMED ABOUT MONEY SAYS MR. MOGIL PEOPLE WHO DON'T HAVE ENOUGH MONEY OR HAVE TOO MUCH FEEL THE SAME THINGS IF YOU HAVE A HUGE AMOUNT YOU FEEL YOU HAVE TOO MANY CHOICES IF YOU HAVE NO MONEY YOU HAVE NO CHOICES BOTH FEEL PARALYZED QUOTE HE SAYS AT ARLENE MATTHEWS'S PRACTICE IN NEW YORK CITY A YOUNG WOMAN JUST STARTING OUT AND A RETIREMENT AGE MAN WHO HAS MADE AND LOST SEVERAL FORTUNES ARE BOTH DOING TIME ON THE COUCH MS. MATTHEWS'S PRACTICE OFTEN ATTRACTS PATIENTS WHO WORK WITH MONEY AS A PROFESSION THEY'RE WONDERFUL AT MAKING MONEY FOR OTHER PEOPLE BUT THEY CAN'T MANAGE THEIR OWN THE PSYCHOTHERAPIST SAYS TODAY MANY PEOPLE FEEL A LOSS OF CONTROL OVER THEIR MONEY SUGGESTS TAHIRA K. HIRA PROFESSOR OF PERSONAL FINANCE AND CONSUMER BEHAVIOR MODERN CULTURE SAYS DOCTOR HIRA OF IOWA STATE UNIVERSITY ENCOURAGES OVERSPENDING AND IRRESPONSIBLITY HANDLING MONEY DEMANDS MORE CONTROL BECAUSE OF THE ENTICING PRODUCTS AROUND US SHE SAYS THE PROBLEMS PEOPLE HAVE WITH MONEY CHANGE WITH THE TIMES SAYS MS. MATTHEWS IT'S A PURGE BINGE THING SHE SAYS THE OVERWHELMING MESSAGE BEING PASSED AROUND IN THE EIGHTIES WAS BUY BUY BUY YOU CAN CATCH UP LATER BECAUSE THE BOOM TIMES ARE HERE TO STAY NOW IN THE NINETIES IT'S SAVE SAVE THE GROUP THINKING INFLUENCES THE WAY PEOPLE WITH MONEY ANXIETIES THINK ABOUT MONEY MS. MELLAN HAS TARGETED SEVEN TYPES OF PATIENTS WHO HAVE PROBLEMS WITH MONEY HOARDERS SPENDERS MONEY MONKS WHO THINK THAT MONEY IS EVIL AND CORRUPT MONEY WORRIERS MONEY AMASSERS WHO WANT TO COLLECT A LOT OF IT RISK TAKERS AND RISK AVOIDERS WHO WANT FINANCIAL SAFETY AND SECURITY ABOVE ALL ELSE IN HER COMING BOOK QUOTE MONEY HARMONY QUOTE SHE PRESCRIBES CURES FOR VARIOUS PERSONALITY TYPES FOR INSTANCE KEVIN WAS A MONEY AMASSER HE WORKED LONG HOURS AND SPENT MOST EVENINGS AND WEEKENDS AT THE COMPUTER MONITORING HIS STOCK INVESTMENTS ON VACATION HE FLAUNTED HIS WEALTH BUT HE COULDN'T RELAX ENOUGH TO ENJOY IT ONE DAY HIS WIFE DECIDED TO LEAVE HIM STUPEFIED HE ASKED HOW CAN YOU THINK ABOUT A DIVORCE AFTER ALL I'VE GIVEN YOU SHE ANSWERED BITTERLY ALL YOU THINK ABOUT IS YOUR MONEY HOW TO MAKE IT GROW HOW TO FLAUNT IT TO IMPRESS OTHERS I FEEL LIKE A SHOWPIECE NOT LIKE SOMEONE YOU ARE SHARING YOUR LIFE WITH AFTER THE SHOCK OF HIS DIVORCE KEVIN ENDED UP AT A MONEY THERAPY WORKSHOP RUN BY MS. MELLAN SOMETIMES A THERAPIST WILL HAVE PATIENTS PRETEND TO ENGAGE IN A DIALOGUE WITH MONEY PERSONIFIED IT MIGHT GO SOMETHING LIKE THIS MONEY YOU ARE DIRTY GET AWAY FROM ME SUCH AN EXERCISE CAN REVEAL HOW THE PATIENT REALLY FEELS ABOUT MONEY OR IT CAN UNCOVER EVEN DEEPER ROOTS LOW SELF ESTEEM DEPRESSION OR THE NEED TO HAVE CONTROL SOME PEOPLE SAYS ANNETTE LIEBERMAN A PSYCHOTHERAPIST IN NEW YORK CITY ACTUALLY REFUSE TO TOUCH MONEY AND BUY EVERYTHING WITH CREDIT CARDS AS PART OF THEIR THERAPY MS. LIEBERMAN TELLS THEM TO PAY FOR EVERYTHING WITH CASH AND KEEP A DIARY OF WHAT THEY BUY THE POINT IS TO MAKE PEOPLE MORE CONSCIOUS OF MONEY ATTITUDES SAYS MS. LIEBERMAN QUOTE IF PEOPLE COULD BECOME MORE AWARE THEY COULD MAKE AN INFORMED FINANCIAL DECISION THAT ISN'T TINGED WITH EMOTIONAL OVERLAY QUOTE OF COURSE CERTAIN PROFESSIONALS THINK MONEY THERAPY IS A LOT OF HOOEY I AM A PSYCHOLOGIST BUT I ALSO HAPPEN TO BE A JESUIT PRIEST WITH A VOW OF POVERTY SAYS DANIEL O'CONNELL CHAIRMAN OF THE PSYCHOLOGY DEPARTMENT AT GEORGETOWN UNIVERSITY AS YOU CAN SEE NO ONE EVER NEEDS TO COUNSEL ME ABOUT MONEY W. L. R. FOODS INCORPORATED A CHICKEN AND TURKEY PROCESSOR SAID ITS BOARD REJECTED AN UNSOLICITED OFFER BY TYSON FOODS INCORPORATED TO BUY THE COMPANY FOR THIRTY DOLLARS A SHARE OR THREE HUNDRED TWENTY NINE MILLION DOLLARS W. L. R. ALSO SET UP DEFENSIVE MEASURES AGAINST FUTURE HOSTILE BIDS IN A LETTER TO TYSON W. L. R. CHAIRMAN CHARLES W. WAMPLER JUNIOR SAID HIS COMPANY'S BOARD BELIEVES IT IS IN THE QUOTE BEST LONG TERM INTERESTS OF W. L. R. FOODS INCORPORATED AND ITS SHAREHOLDERS FOR THE COMPANY TO REMAIN INDEPENDENT QUOTE W. L. R.'S REJECTION CAME TWO DAYS AFTER TYSON'S FEBRUARY FOURTH DEADLINE FOR A RESPONSE A W. L. R. SPOKESWOMAN SAID TYSON HASN'T ANNOUNCED WHETHER IT WILL LAUNCH A PUBLIC TENDER OFFER FOR W. L. R. OFFICIALS OF TYSON FOODS THE NATION'S BIGGEST POULTRY COMPANY COULDN'T BE REACHED IN A SEPARATE LETTER TO SHAREHOLDERS W. L. R. ANNOUNCED IT HAD SET UP A SHAREHOLDER PROTECTION RIGHTS PLAN THAT COULD SUBSTANTIALLY DILUTE THE HOLDINGS OF ANY PERSON OR GROUP THAT ACQUIRES FIFTEEN PERCENT OR MORE OF THE COMPANY'S COMMON STOCK THE PLAN GIVES SHAREHOLDERS THE RIGHT TO BUY ADDITIONAL SHARES AT HALF THE CURRENT MARKET VALUE IN THE EVENT SOMEONE ATTEMPTS TO ACQUIRE CONTROL OF THE COMPANY THE TYSON BID REPRESENTED A FIFTY SEVEN PERCENT PREMIUM OVER THE NINETEEN DOLLARS CLOSING FOR W. L. R.'S STOCK ON THE DAY OF THE ANNOUNCEMENT IN NASDAQ STOCK MARKET TRADING FRIDAY W. L. R. SHARES CLOSED AT TWENTY EIGHT DOLLARS AND TWENTY FIVE CENTS DOWN ONE DOLLAR WHILE TYSON SHARES CLOSED UNCHANGED AT TWENTY ONE POINT EIGHT SEVEN FIVE DOLLARS IN EXPLAINING ITS REJECTION W. L. R. SAID IT HAS MADE SIGNIFICANT CAPITAL EXPENDITURES AND ACQUISITIONS IN RECENT YEARS TO STRATEGICALLY POSITION THIS COMPANY TO PROFIT IN A MORE FAVORABLE POULTRY CYCLE AND NATIONAL ECONOMY A SALE IT SAID WOULD DEPRIVE SHAREHOLDERS FROM REALIZING THE BENEFITS OF THAT INVESTMENT IT SAID POSTMASTER GENERAL MARVIN RUNYON IS BACKING A TEN POINT THREE PERCENT INCREASE IN POSTAL RATES BUT THERE ARE SIGNS THAT BOARD MEMBERS WHO MUST SUPPORT THE BOOST DON'T THINK IT WOULD BE ENOUGH THE TEN POINT THREE PERCENT INCREASE WHICH WOULD APPLY EVENLY TO ALL CLASSES OF MAIL IS THE LOWER OF TWO PROPOSED RATE INCREASES THAT WILL BE PRESENTED TO THE U. S. POSTAL SERVICE BOARD IN THE NEXT FEW DAYS THE OTHER PLAN WOULD IMPOSE VARIED INCREASES ON DIFFERENT CLASSES OF MAIL FOR AN AVERAGE INCREASE OF THIRTEEN POINT EIGHT PERCENT ACCORDING TO PEOPLE WITH KNOWLEDGE OF THE PLANS THE BOARD IS EXPECTED TO MAKE ITS DECISION NEXT MONTH GENERATING A FILING FOR A RATE INCREASE WITH THE INDEPENDENT POSTAL RATE COMMISSION HIGHER RATES WOULD LIKELY GO INTO EFFECT IN EARLY NINETEEN NINETY FIVE THE LOWER INCREASE WOULD BOOST THE PRICE OF MAILING A TYPICAL FIRST CLASS LETTER TO THIRTY TWO CENTS WHILE THE LARGER ONE WOULD LIFT THE PRICE TO THIRTY THREE CENTS THE MOST RECENT RATE INCREASE TOOK EFFECT IN FEBRUARY NINETEEN NINETY ONE LIFTING THE COST OF MAILING A FIRST CLASS LETTER FOUR CENTS TO TWENTY NINE CENTS BY THE TIME ANY RATE INCREASE NOW BEING CONSIDERED IS PUT INTO EFFECT THE INFLATION RATE WILL HAVE GAINED A CUMULATIVE FOURTEEN PERCENT OR FIFTEEN PERCENT FROM EARLY NINETEEN NINETY ONE MR. RUNYON WHO HAS EMBARKED ON A MUCH PUBLICIZED COST CUTTING EFFORT AT THE AGENCY IS SAID TO BE EAGER TO KEEP THE AVERAGE INCREASE BELOW THE INFLATION NUMBER NEITHER HE NOR OTHER POSTAL OFFICIALS COULD BE REACHED FOR COMMENT ON THE PLANS LATE LAST WEEK FOR THE FIRST TIME MR. RUNYON SAID HE BACKS THE SMALLER TEN POINT THREE PERCENT INCREASE AT A MEETING WITH POSTAL EMPLOYEES AND BUSINESS MAILERS IN HARRISBURG PENNSYLVANIA MR. RUNYON SAID QUOTE I'M PERSONALLY PUSHING THAT BUT THE BOARD OF GOVERNORS MAKES THE FINAL DECISION QUOTE THE HARRISBURG PATRIOT REPORTED BUSINESS MAILERS ARE EAGER TO GET BOARD BACKING FOR THE TEN POINT THREE PERCENT BOOST IN PART BECAUSE IT WOULD LIKELY SIDESTEP LEGAL WRANGLING THAT TYPICALLY HAS FOLLOWED RATE HIKES IN WHICH INCREASES VARIED FOR DIFFERENT CLASSES OF MAIL ON WEDNESDAY THE MAILERS COUNCIL A GROUP OF THE NATION'S BIGGEST MAILERS PLANS TO HOLD A NEWS CONFERENCE TO BACK THE ACROSS THE BOARD RATE INCREASE GROUPS AS VARIED AS THE AMERICAN BANKERS ASSOCIATION AND THE GREETING CARD ASSOCIATION ALSO ARE EXPECTED TO JOIN THE CALL BUSINESS OFFICIALS THREATEN THAT IF THE HIGHER THIRTEEN POINT EIGHT PERCENT AVERAGE BOOST IS SUPPORTED BY THE BOARD THE CONSENSUS WOULD BREAK DOWN AND THE RATE SETTING PROCESS WOULD TURN INTO A LEGAL MESS BUT OFFICIALS BOTH INSIDE AND OUTSIDE THE POSTAL SERVICE ARE BEGINNING TO DOUBT THE AGENCY'S ABILITY TO MAKE DO WITH A TEN POINT THREE PERCENT INCREASE RATES MUST BE HIGH ENOUGH TO KEEP THE POSTAL SERVICE SOLVENT AN INCREASINGLY TOUGH CHORE AS ALTERNATIVE METHODS FOR DELIVERING DOCUMENTS ADVERTISING AND OTHER MESSAGES SUCH AS FACSIMILE MACHINES AND TELEMARKETING CONTINUE TO EAT INTO THE POSTAL SERVICE'S CORE FRANCHISE UNDER THE LAW THE GOVERNORS MUST BE ABLE TO JUSTIFY WHY THEY BELIEVE ANY RATE INCREASE WILL BE SUFFICIENT TO COVER COSTS ONE SENIOR BOARD MEMBER WHO DECLINED TO BE QUOTED EXPRESSED SKEPTICISM THAT THE POSTAL SERVICE CAN MAKE ENDS MEET WITH A TEN POINT THREE PERCENT BOOST AND OFFICIALS OUTSIDE THE AGENCY SAY THEY HAVE SPOKEN WITH OTHER BOARD MEMBERS WHO HAVE EXPRESSED SIMILAR DOUBTS OUTSIDE THE AGENCY BUSINESS MAILING LEADERS ARE BEGINNING TO GROW DISCOURAGED WITH THE POSTAL SERVICE'S FINANCES IT'S EXTREMELY IMPORTANT THAT THE GOVERNORS GIVE SERIOUS CONSIDERATION TO THE TEN POINT THREE PERCENT ACROSS THE BOARD INCREASE SAID GENE DEL POLITO EXECUTIVE DIRECTOR OF THE ADVERTISING MAIL MARKETING ASSOCIATION BUT WITH EACH SUCCESSIVE ACCOUNTING PERIOD SKEPTICISM REGARDING THE PROBABILITY OF MANAGEMENT'S CHANCE OF SUCCESS GROWS HEADS UP HOMEOWNERS THE GREAT LOW LOW MORTGAGE RATE BONANZA MAY BE COMING TO AN END THE FEDERAL RESERVE BOARD LAST WEEK SOUNDED THE CLARION WHEN IT ANNOUNCED ITS DECISION TO TIGHTEN CREDIT POLICY A MOVE THAT IS LIKELY TO MAKE HOME FINANCING AND OTHER BORROWING MORE EXPENSIVE IN THE FUTURE QUOTE SOMETIME WITHIN THE NEXT FIVE YEARS PEOPLE LOOKING BACK WILL FIND THESE RATES JUST AS STRANGE AND UNUSUAL AS THE SIXTEEN PERCENT OF NINETEEN EIGHTY FOUR QUOTE PREDICTS HUGH LAMLE EXECUTIVE VICE PRESIDENT OF NEW YORK BASED M. D. SASS INVESTORS SERVICES INCORPORATED SO WHETHER YOU'RE A LONG TIME RESIDENT A FIRST TIME BUYER OR A TRADER UP TO NEW DIGS IT'S TIME TO GIVE YOUR MORTGAGE STRATEGY A REALITY CHECK FOR INSTANCE DO YOU HAVE OR ARE YOU CONTEMPLATING AN ADJUSTABLE RATE MORTGAGE IN THAT CASE YOU'LL BE AMONG THE FIRST TO FEEL THE KICK AS THESE LOANS TRACK SHORT TERM INTEREST RATES SUCH AS ONE YEAR TREASURY BILLS WHICH BEAR THE INITIAL BRUNT OF STIFFER MONETARY POLICY THE HARDEST HIT BY THE FED'S MOVE ARE GOING TO BE THE ARM HOLDERS WHOSE RATE COMES UP FOR ADJUSTMENT IN THE NEXT FEW WEEKS SAYS ROBERT K. HEADY PUBLISHER OF BANK RATE MONITOR A NORTH PALM BEACH FLORIDA NEWSLETTER MORTGAGE LENDERS SAY THEY EXPECT THE FED'S MOVES TO CHILL THE MARKET FOR NEW ARMS THEY'RE ALSO BRACING THEMSELVES FOR A RUSH OF REFINANCINGS AS MANY HOLDERS OF THE APPROXIMATELY EIGHT HUNDRED FIFTY BILLION DOLLARS OF EXISTING ARMS MOVE INTO FIXED RATES TO BE SURE SOME HOMEOWNERS MAY STILL WANT TO CONSIDER ARMS MANY INITIAL TEASER RATES ARE JUST OVER FOUR PERCENT NOW SO SOMEONE EXPECTING TO MOVE IN A FEW YEARS COULD SAVE ENOUGH IN THE FIRST FEW YEARS OF THE LOAN TO OFFSET FUTURE INCREASES WHAT'S MORE ALTHOUGH MOST ARMS ADJUST ANNUALLY THERE ARE ARMS THAT ADJUST ONLY ONCE EVERY THREE FIVE OR SEVEN YEARS AND OFFER CHEAPER RATES THAN MOST FIXED RATE LOANS TO WEIGH THE POTENTIAL COSTS OF ARMS BORROWERS SHOULD CALCULATE THE MAXIMUM AMOUNT THEIR PAYMENTS CAN RISE USUALLY BOOSTS ARE CAPPED AT TWO PERCENTAGE POINTS A YEAR AND SIX PERCENTAGE POINTS OVER THE LIFE OF THE LOAN EVEN SO MOST PEOPLE SHOPPING FOR A MORTGAGE ON A NEW HOME SHOULD BE LOOKING AT FIXED RATE LOANS RATES ON THESE MORTGAGES WEREN'T MUCH AFFECTED BY THE FED'S NEWS AND STILL ARE VERY ATTRACTIVE AFTER CREEPING UP ABOUT A QUARTER PERCENTAGE POINT FROM LAST AUTUMN'S LOWS THE AVERAGE RATE ON THIRTY YEAR FIXED RATE LOANS IS JUST OVER SEVEN PERCENT AND ON FIFTEEN YEAR MORTGAGES IT'S NEARLY HALF A PERCENTAGE POINT LOWER UNLESS YOU REALLY BELIEVE THAT SHORT TERM RATES ARE GOING TO STAY ABOUT WHERE THEY ARE NOW OR YOU'RE PLANNING TO MOVE OR PAY OFF YOUR MORTGAGE WITHIN THE NEXT YEAR OR TWO YOU WOULD DO WELL WITH A FIXED RATE MORTGAGE SAYS ROGER HARRINGTON A MORTGAGE ADVISER IN WHITE BEAR LAKE MINNESOTA INDEED SOME PROS SAY LONG TERM DEBT MAY EVEN BECOME A TOUCH CHEAPER IN THE WEEKS TO COME AS TIGHTER CREDIT REASSURES THE MARKET THAT INFLATION WILL REMAIN IN CHECK SUCH A DIP IN RATES WOULD PROVIDE AN EXTRA INCENTIVE TO CLINCH A FIXED RATE MORTGAGE DEAL SOONER RATHER THAN LATER AS ECONOMISTS ARE FORECASTING THAT RATES WILL BE HALF A PERCENTAGE POINT HIGHER BY YEAR END RATES ARE NOT GOING TO GET MUCH BETTER AND COULD GET WORSE SAYS WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKERS ASSOCIATION OF AMERICA A TRADE GROUP IN WASHINGTON I WOULDN'T WAIT TOO LONG THE PROS SAY EVERYONE WITH A MORTGAGE RATE HIGHER THAN EIGHT POINT FIVE PERCENT SHOULD AT LEAST BE CONSIDERING REFINANCING NOW THAT INCLUDES ALL FIVE MILLION COUCH POTATOES WHO COULD HAVE REFINANCED LAST YEAR AND BENEFITED FROM THE LOWEST INTEREST RATES IN TWENTY FIVE YEARS BUT DIDN'T QUOTE ANYONE WHO HASN'T AT LEAST THOUGHT ABOUT REFINANCING MUST BE BRAIN DEAD QUOTE SAYS M. D. SASS'S MR. LAMLE THE MORTGAGE BANKERS ASSOCIATION ESTIMATES THAT MORE THAN SIX HUNDRED BILLION DOLLARS OF EXISTING MORTGAGES CARRY INTEREST RATES ABOVE NINE PERCENT AND THAT INCLUDES ABOUT TWO HUNDRED FIFTY BILLION DOLLARS ABOVE TEN PERCENT ON WALL STREET MORTGAGE INVESTORS CALL IT BURNOUT WHEN BORROWERS JUST KEEP MAKING PAYMENTS ON SUCH HIGH RATE MORTGAGES BY WHATEVER NAME IT COSTS YOU A BUNDLE I TALK TO PEOPLE EVERY WEEK WHO ARE PAYING MORE THAN TEN PERCENT SAYS MR. HARRINGTON THE MORTGAGE ADVISER OF COURSE SOME PEOPLE HAVE GOOD REASONS NOT TO REFINANCE IF THEY PLAN TO MOVE IN A FEW YEARS OR IF THEY HAVE JUST A SMALL BALANCE LEFT ON THEIR LOAN THE COST AND HASSLE PROBABLY AREN'T WORTH IT BUT OTHERS MAY JUST NOT REALIZE HOW MUCH THEY CAN SAVE THEY THINK BECAUSE THEY'RE TEN OR FIFTEEN YEARS INTO A MORTGAGE AND STARTING TO PAY DOWN PRINCIPAL REFINANCING DOESN'T MAKE SENSE OR THEY SIMPLY OPT FOR THE LEAST AMBITIOUS STRATEGY WHICH IS TO RETIRE THEIR REMAINING DEBT MORE QUICKLY IT'S TRUE THAT MAKING ONE EXTRA PAYMENT A YEAR OR SWITCHING TO BIWEEKLY PAYMENTS CAN SHORTEN A THIRTY YEAR MORTGAGE BY SEVERAL YEARS AND EFFECTIVELY CUT INTEREST COSTS BY SEVERAL THOUSAND DOLLARS WITHOUT REFINANCING BUT CRUNCHING THE NUMBERS SHOWS THAT REFINANCING IS STILL THE BETTER DEAL THAT'S PARTICULARLY SO FOR HOMEOWNERS WHO OPT TO REFINANCE THEIR LOAN BALANCES INTO FIFTEEN YEAR LOANS RATES ARE SO LOW THAT NOT ONLY WILL THEIR MONTHLY PAYMENTS PROBABLY DECLINE BUT WHAT'S MORE THEIR NEW DEBT PROBABLY WON'T LAST LONGER THAN THE ORIGINAL LOAN WORK OUT WHAT YOU'VE SPENT ON YOUR MORTGAGE SO FAR AND WHAT A NEW MORTGAGE WILL COST ADVISES KEITH GUMBINGER OF H. S. H. ASSOCIATES A BUTLER N. J. FIRM THAT TRACKS MORTGAGE RATES THE REAL DECISION COMES DOWN TO OVERALL EXPENSE TAKE A COUPLE WHO BORROWED ONE HUNDRED THOUSAND DOLLARS IN NINETEEN SEVENTY NINE AT THE THEN PREVAILING RATE OF ABOUT TEN PERCENT BY NOW THEY WOULD HAVE PAID OFF EIGHTEEN THOUSAND ONE HUNDRED FORTY DOLLARS IN PRINCIPAL LEAVING A BALANCE OF EIGHTY ONE THOUSAND EIGHT HUNDRED SIXTY DOLLARS ACCORDING TO P. N. C. MORTGAGE CORPORATION A RIVERWOODS ILLINOIS UNIT OF P. N. C. FINANCIAL CORPORATION THEY WOULD ALSO HAVE PAID ONE HUNDRED FORTY THOUSAND DOLLARS IN INTEREST SINCE NINETEEN SEVENTY NINE IF THEY NOW DECIDED TO MAKE ONE EXTRA PAYMENT A YEAR AVOIDING THE COSTS AND HASSLE OF REFINANCING THEY WOULD SHORTEN THE MORTGAGE BY ABOUT TWO AND ONE HALF YEARS AND SAVE ABOUT FIFTEEN THOUSAND DOLLARS IN INTEREST COSTS OVER THE REMAINING FIFTEEN YEARS HOWEVER IF THEY REFINANCED THE EIGHTY ONE THOUSAND EIGHT HUNDRED SIXTY DOLLAR BALANCE INTO A NEW FIFTEEN YEAR LOAN AT TODAY'S RATE OF ABOUT SEVEN PERCENT THEY WOULD SAVE MORE THAN TWENTY FIVE THOUSAND DOLLARS OVER THAT SAME PERIOD MONTHLY PAYMENTS MEANWHILE WOULD FALL TO SEVEN HUNDRED THIRTY FIVE DOLLARS AND SEVENTY EIGHT CENTS FROM EIGHT HUNDRED SEVENTY SEVEN DOLLARS AND FIFTY SEVEN CENTS IF THEY WERE MORE AMBITIOUS AND KEPT PAYING EIGHT HUNDRED SEVENTY SEVEN DOLLARS AND FIFTY SEVEN CENTS A MONTH AS THEY HAD BEFORE A FIFTEEN YEAR REFINANCING WOULD BE A EVEN BIGGER BARGAIN ACCORDING TO CALCULATIONS BY P. N. C. MORTGAGE THE REMAINING DEBT WOULD BE PAID OFF IN LESS THAN TWELVE YEARS AT A TOTAL SAVINGS OF NEARLY FORTY THOUSAND DOLLARS IN INTEREST SPURRED BY NEWS FROM THE FED MANY HOMEOWNERS ARE AT LAST MAKING SUCH MOVES THERE WAS A SIGNIFICANT INCREASE IN APPLICATIONS LAST WEEK SAYS RICK COSSANO EXECUTIVE VICE PRESIDENT OF COUNTRYWIDE FUNDING CORPORATION A NATIONWIDE LENDER IN PASADENA CALIFORNIA FOR YEARS ARAB STATES HAVE TOLD THE U. S. THAT IF ISRAEL WOULD JUST RECONCILE WITH THE PALESTINIANS ALL ARAB ISRAELI PROBLEMS COULD BE SOLVED ISRAEL TOOK A GIANT STEP WHEN IT SIGNED AN ACCORD WITH THE PALESTINE LIBERATION ORGANIZATION NOW IT IS THE ARABS' TURN THE CLEAREST WAY FOR THE ARAB WORLD TO SIGNAL ITS READINESS TO BOLSTER MIDDLE EAST PEACE TALKS WOULD BE TO FORMALLY EASE ITS BOYCOTT OF ISRAEL THE SECRETARY GENERAL OF THE ARAB LEAGUE RECENTLY PROMISED U. S. COMMERCE SECRETARY RON BROWN THAT THE BOYCOTT WILL BE ON THE AGENDA WHEN THE GROUP HOLDS ITS REGULAR MINISTERIAL MEETING IN CAIRO NEXT MONTH BUT SEVERAL ARAB DIPLOMATS SAY THE LEAGUE ISN'T LIKELY TO RELAX THE BOYCOTT EVEN THOUGH DOING SO NO LONGER WOULD REQUIRE A HEROIC EFFORT SEVERAL MAJOR HOLES ALREADY HAVE BEEN POKED IN THE BOYCOTT MOROCCO HAS OPEN ECONOMIC LINKS WITH ISRAEL CLANDESTINE TRADE BETWEEN ISRAELIS AND ARABS IS ESTIMATED TO TOTAL FIVE HUNDRED MILLION DOLLARS YEARLY ACCORDING TO BENJAMIN GAON PRESIDENT AND CHIEF EXECUTIVE OF KOOR INDUSTRIES ISRAEL'S LARGEST CONGLOMERATE AND KUWAIT AND SAUDI ARABIA THANKFUL TO THE U. S. FOR HELPING SAVE THEM FROM SADDAM HUSSEIN UNOFFICIALLY IGNORE THE SO CALLED SECONDARY BOYCOTT UNDER WHICH ARAB STATES BLACKBALL U. S. COMPANIES THAT DO BUSINESS IN ISRAEL U. S. OFFICIALS SAY THESE STEPS AREN'T ENOUGH ESPECIALLY IN VIEW OF THE MOVE TOWARD RECONCILIATION BETWEEN ISRAEL AND THE PALESTINIANS ISRAELI PRIME MINISTER YITZHAK RABIN UNDER SIEGE FROM HARDLINERS AT HOME WON'T BE ABLE TO MAKE THE COMPROMISES NEEDED TO WIN PEACE WITH HIS ARAB NEIGHBORS UNLESS HE CAN SHOW ISRAELI VOTERS SOME TANGIBLE BENEFITS OF PEACE LIFTING AT LEAST THE SECONDARY BOYCOTT WOULD GIVE ISRAEL AN ECONOMIC BOOST REMOVING THE CONCERNS SOME MULTINATIONAL COMPANIES HAVE ABOUT DOING BUSINESS THERE IT WOULD PROVIDE A PSYCHOLOGICAL LIFT AS WELL EVEN FOR ARAB GOVERNMENTS THE THEORETICAL REASONS FOR MAINTAINING THE EMBARGO ARE RAPIDLY BEING OVERTAKEN BY PRACTICAL REASONS TO ELIMINATE IT THE U. S. IS TRYING TO ENCOURAGE PRIVATE INVESTMENT IN THE ISRAELI OCCUPIED WEST BANK AND GAZA STRIP TO BOLSTER THE PALESTINIAN GOVERNING BODY THAT WILL FUNCTION THERE FOLLOWING THE PLANNED ISRAELI WITHDRAWAL BUT MANY COMPANIES WON'T MAKE INVESTMENTS WITHOUT THE ASSURANCES THAT CAN BE PROVIDED ONLY BY OFFICIAL ELIMINATION OF THE BOYCOTT RULES SENIOR U. S. OFFICIALS REPEATEDLY HAVE TOLD P. L. O. CHAIRMAN YASSER ARAFAT THAT ENDING THE BOYCOTT WOULD BE IN THE ECONOMIC INTEREST OF PALESTINIANS HIS RESPONSE HAS BEEN THAT HE UNDERSTANDS THE CONNECTION BUT CAN'T CALL FOR AN END TO THE BOYCOTT UNTIL THE ISRAELI PALESTINIAN AGREEMENT SIGNED LAST SEPTEMBER THIRTEENTH IS IMPLEMENTED TWO WEEKS AGO THOUGH DURING AN INTERNATIONAL ECONOMIC GATHERING IN DAVOS SWITZERLAND MR. ARAFAT JOINED IN THE APPLAUSE WHEN A U. S. OFFICIAL CALLED FOR ENDING THE BOYCOTT U. S. OFFICIALS AREN'T SURE WHETHER THE ENIGMATIC MR. ARAFAT WAS SIGNALING A CHANGE OF POSITION OR JUST WASN'T PAYING ATTENTION TO THE SPEAKER MEANWHILE PRESSURE IS MOUNTING FROM THE U. S. CONGRESS THE SENATE RECENTLY APPROVED AN AMENDMENT THAT WOULD PROHIBIT THE SALE OF DEFENSE ITEMS TO COUNTRIES THAT ASK U. S. COMPANIES TO COOPERATE WITH THE BOYCOTT U. S. COMPANIES ALREADY ARE PROHIBITED FROM COOPERATING WITH THE BOYCOTT THE MEASURE DOES HAVE A LOOPHOLE THE WHITE HOUSE COULD WAIVE IT FOR REASONS OF NATIONAL INTEREST OR SECURITY STILL IT COULD BE AWKWARD FOR THE CLINTON ADMINISTRATION TO TAKE ADVANTAGE OF THE LOOPHOLE SAYS A SENIOR U. S. OFFICIAL QUOTE WE CAN'T COMPLETELY IGNORE THE CONCERNS OF THE CONGRESS ESPECIALLY IN CIRCUMSTANCES WHERE WE SUPPORT THE OBJECTIVES OF THE LEGISLATION QUOTE NOBODY EXPECTS THE ARAB LEAGUE NEXT MONTH TO REVOKE ITS PRIMARY BOYCOTT AND FREE ARAB GOVERNMENTS TO DO BUSINESS DIRECTLY WITH ISRAEL THAT STEP AND DIPLOMATIC RECOGNITION OF ISRAEL ARE CONCESSIONS THAT WILL BE HELD FOR FUTURE NEGOTIATIONS BUT THE TIME HAS COME TO END AT LEAST THE SECONDARY BOYCOTT AMERICAN IMPATIENCE FOR SUCH A MOVE IS INCREASING TALK HAS BEEN QUITE CHEAP ON THIS ISSUE AND ACTION QUITE DEAR SAYS REPRESENTATIVE CHARLES SCHUMER A NEW YORK DEMOCRAT AND STRONG ISRAEL SUPPORTER WITH THE LIFTING OF THE TRADE EMBARGO AGAINST VIETNAM MADISON AVENUE HAS SET ITS SIGHTS ON THAT COUNTRY'S SEVENTY TWO MILLION PEOPLE AT LEAST THREE MAJOR AGENCIES ARE ALREADY IN VIETNAM WITH LIAISON OR INFORMAL OFFICES NOW THAT THE EMBARGO HAS BEEN LIFTED J. WALTER THOMPSON AND OGILVY AND MATHER BOTH UNITS OF W. P. P. GROUP AND SAATCHI AND SAATCHI'S BACKER SPIELVOGEL BATES WORLDWIDE EXPECT TO BE UP AND RUNNING ALMOST IMMEDIATELY ANOTHER AGENCY INTERPUBLIC GROUP'S MCCANN ERICKSON ALREADY HAS PRODUCED A TELEVISION COMMERCIAL FOR COCA COLA A COKE SPOKESWOMAN IN ATLANTA DECLINED TO DESCRIBE THE COMMERCIAL BEYOND SAYING THAT IT WOULD INCLUDE THE GLOBAL SLOGAN QUOTE ALWAYS QUOTE A COKE OFFICIAL SAID PRODUCTION WOULD BEGIN AS SOON AS CONCENTRATE AND OTHER NECESSARY MATERIALS CAN BE BROUGHT INTO THE COUNTRY AS FOR RIVAL PEPSICO THE PURCHASE N. Y. BEVERAGE COMPANY WAS HANDING OUT SAMPLES OF THE SOFT DRINK IN HO CHI MINH CITY ON FRIDAY AND THE COMPANY PLANS TO BE FULLY OPERATIONAL IN A WEEK A SPOKESMAN SAID ALREADY PREPARED IS PEPSI'S FIRST T. V. COMMERCIAL AIMED AT THE VIETNAMESE MARKET VIETNAM IS THE NEXT GREAT FRONTIER SAYS BRIAN WATSON DEPUTY REGIONAL DIRECTOR OF MCCANN ERICKSON'S ASIA PACIFIC REGION WHO IS BASED IN HONG KONG THERE IS AN ENORMOUS AMOUNT OF INTEREST AMONG MANY CLIENTS EVERY MEETING STARTS WITH A QUESTION ABOUT GOING INTO VIETNAM MR. WATSON SAYS HE ANTICIPATES THAT SUCH COMPANIES AS GILLETTE AND UNILEVER WILL ENTER THE VIETNAM MARKET EVEN THOUGH VIETNAM APPEARS TO BE FERTILE GROUND FOR AMERICAN PRODUCTS IT IS LESS CLEAR HOW BIG THE MARKET WILL PROVE TO BE THE PER CAPITA INCOME REGISTERS A MERE TWO HUNDRED DOLLARS ANNUALLY FOR INSTANCE STILL AD AGENCY EXECUTIVES NOTE THAT MANY U. S. PRODUCTS INCLUDING COKE ARE ALREADY POPULAR IN VIETNAM THROUGH THE BLACK MARKET AT INFLATED PRICES ONCE THE MERCHANDISE IS LEGAL THE EXECUTIVES SAY THE PRICE WILL BE LOWER THERE ARE MANY BUSINESS OPPORTUNITIES OVER THERE BECAUSE IT IS A YOUNG POPULATION HARD WORKING AND VERY LITERATE SAYS JOJI KONOSHIMA PRESIDENT OF THE U. S. ASIA INSTITUTE A NONPROFIT ORGANIZATION IN WASHINGTON ACCORDING TO A STUDY LAST OCTOBER BY OGILVY AND MATHER TITLED THE LURE OF VIETNAM ABOUT FIFTY PERCENT OF THE POPULATION IS UNDER TWENTY IT IS THAT AGE GROUP MARKETING EXPERTS SAY THAT MOST CRAVES AMERICAN PRODUCTS SUCH AS BLUE JEANS AND ATHLETIC FOOTWEAR QUOTE THERE IS A SOLID MIDDLE CLASS QUOTE SAYS WILLIAM THOMPSON VICE CHAIRMAN AND CHIEF MARKETING OFFICER AT J. WALTER THOMPSON THE DILEMMA IS THAT THE INFRASTRUCTURE IS BAD THE TELEPHONE SYSTEM ISN'T UP TO NINETEEN NINETY FOUR STANDARDS MR. THOMPSON SAYS ADVERTISING AGENCIES WILL DEVISE CAMPAIGNS FOR VIETNAM THAT WILL BUILD A BRAND IMAGE BECAUSE IT WILL BE THE FIRST TIME CONSUMERS ARE BOMBARDED WITH SUCH PRODUCT NAMES ALBEIT SOME OF THEM FAMILIAR THE REAL BATTLE HE SAYS WILL BE WHO CAN BUILD THEIR BRAND FASTER SINCE MANY ARE STARTING FROM GROUND ZERO IT'LL BE A FIERCE RACE AND THAT'S WHERE ADVERTISING WILL COME IN MR. THOMPSON SAYS IT IS TOO EARLY TO BE SPECIFIC ABOUT WHICH THOMPSON CLIENTS WILL BE MARKETING IN VIETNAM QUOTE WE'RE READY TO GO WHEN OUR CLIENTS ARE READY TO GO QUOTE HE SAYS THOMPSON AND BACKER SPIELVOGEL ARE SEPARATE PARTNERS WITH THE VIETNAMESE AGENCY VINEXAD OGILVY AND MATHER IS A PARTNER WITH SAIGON ADVERTISING MCCANN ERICKSON HAS NO PARTNER AND MAY BE INDEPENDENT CARL SPIELVOGEL CHAIRMAN OF BACKER SPIELVOGEL SAYS SOME OF THE AGENCY'S REGIONAL CLIENTS INCLUDING HEINEKEN BEER AND BRITISH AMERICAN TOBACCO EXPRESSED INTEREST IN SELLING IN VIETNAM AD EXECUTIVES SAY THE FIRST VENUE FOR ADS WITH FEW EXCEPTIONS WON'T BE TELEVISION OR RADIO VIETNAM HAS FIVE MAJOR T. V. STATIONS THREE BROADCASTING FROM HANOI AND TWO FROM HO CHI MINH CITY BUT THE MOST POPULAR WAY TO ADVERTISE REMAINS THE MANY BILLBOARDS THAT POPULATE THE COUNTRY MR. SPIELVOGEL WHO HAS TRAVELED TO VIETNAM SEVERAL TIMES SAYS THERE IS AMPLE EVIDENCE THAT U. S. COMPANIES ARE THE LAST MAJOR ENTRANTS INTO VIETMAN ON A RECENT TRIP TO VIETNAM MR. SPIELVOGEL RECALLS HE STEPPED OUT ONTO THE BALCONY OF HIS HOTEL I STOOD FACING A HUGE BILLBOARD DIRECTLY ACROSS THE STREET HE SAYS IT SIMPLY SAID SONY OTHER COMPANIES PLASTERING THE LANDSCAPE WITH BILLBOARDS INCLUDE PANASONIC AND SHARP THEY WON'T BE ALONE FOR LONG SAY AD AGENCY EXECUTIVES ACCORDING TO AD AGENCY EXECUTIVES UNILEVER IS EXPLORING THE POSSIBILITY OF MARKETING LUX SOAP AS WELL AS TOOTHPASTE WITHIN A FEW MONTHS COLGATE PALMOLIVE IS ALSO CONTEMPLATING A MOVE INTO VIETNAM AND JUST WHAT KIND OF ADVERTISING WILL BE SEEN IT WILL BE SIMILAR TO WHAT WAS FIRST INTRODUCED IN CHINA SAYS MR. WATSON OF MCCANN INITIALLY MOST OF THE ADVERTISING WOULD BE SIMPLISTIC AND INVOLVE PRODUCT DEMONSTRATIONS CURIOUSLY ONE MAJOR COMPANY THAT PLANS A PRESENCE IN VIETNAM AMERICAN EXPRESS DOESN'T PLAN TO USE ADVERTISING AT ALL STEVE FRIEDMAN PRESIDENT AND GENERAL MANAGER OF ASIA OPERATIONS AT AMERICAN EXPRESS BASED IN TOKYO SAYS THE COMPANY SIGNED AN AGREEMENT WITH VIETNAMESE BANKS LAST WEEK TO MAKE IT POSSIBLE FOR THE CARD TO BE USED IN THE COUNTRY BUT SAYS MR. FRIEDMAN BECAUSE THE GOAL ISN'T TO PENETRATE THE DOMESTIC MARKET BY SIGNING VIETNAMESE TO BE CARDHOLDERS ADVERTISING WITHIN THE COUNTRY ISN'T NECESSARY INSTEAD THE OBJECTIVE IS FOR TRAVELERS TO USE THE CARD IN HOTELS AND RESTAURANTS C. B. S. INCORPORATED'S C. B. S. NETWORK SAID IT WILL OFFER AN ON LINE OLYMPICS INFORMATION SERVICE ON THE PRODIGY COMPUTER NETWORK AND PROMOTE IT DURING COVERAGE OF THE LILLEHAMMER GAMES AFTER THE GAMES ARE OVER C. B. S. SAID IT PLANS TO CONTINUE PROVIDING THE SERVICE ON THE PRODIGY NETWORK AS A PERMANENT INTERACTIVE QUOTE HUB QUOTE OF INFORMATION ABOUT REGULAR C. B. S. PROGRAMMING PRODIGY SERVICES COMPANY A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORPORATION AND SEARS ROEBUCK AND COMPANY IS A SPONSOR OF C. B. S.'S LATE NIGHT OLYMPICS COVERAGE PRODIGY AND THE OLYMPICS SERVICE ALSO WILL GET PLUGS DURING COVERAGE OF THE GAMES WITH C. B. S. HOSTS PROVIDING VIEWERS WITH PRODIGY'S TOLL FREE NEW SUBSCRIPTION PHONE NUMBER SAID GEORGE SCHWEITZER C. B. S. SENIOR VICE PRESIDENT OF MARKETING WE GET AN INTERACTIVE CAPABILITY AND THE ABILITY TO SPEAK TO A TARGETED AUDIENCE OF ON LINE USERS MR. SCHWEITZER SAID PRODIGY GETS TO ENHANCE THEIR POSITION WITH MILLIONS OF VIEWERS CARRY OUR INFORMATION AND BUILD THEIR NETWORK C. B. S. HAS USED THE PRODIGY NETWORK BEFORE INCLUDING AN ELECTRONIC FOCUS GROUP ABOUT LATE SHOW WITH DAVID LETTERMAN IT CONDUCTED LAST SUMMER THE ON LINE OLYMPICS SERVICE WILL INCLUDE SESSIONS WITH C. B. S. COMMENTATORS AND RESEARCHERS AS WELL AS BULLETIN BOARDS POLLS AND A WINTER OLYMPICS ARCHIVES AFTER THE GAMES ARE OVER MR. SCHWEITZER SAID C. B. S. PLANS TO ADD PROMOTIONS FOR SHOWS AND SPONSORS SHAWMUT KETCHUM ADVERTISING NEW YORK SAID IT RESIGNED FROM SHAWMUT NATIONAL CORPORATION'S NINE POINT FIVE MILLION DOLLAR ACCOUNT CITING COMPENSATION DIFFICULTIES A SPOKESMAN FOR THE NEW ENGLAND COMMERCIAL BANK CALLED THE DECISION MUTUAL AND SAID IT WAS STILL ASSESSING ITS OPTIONS FOR HIRING A NEW AGENCY SEPARATELY KETCHUM'S LOS ANGELES OFFICE SAID IT WON THE PROJECTED FIFTEEN MILLION DOLLARS PACIFICARE HEALTHCARE SYSTEMS ACCOUNT AND THE EIGHT MILLION DOLLAR ACCOUNT OF SOUTHERN CALIFORNIA KENTUCKY FRIED CHICKEN FRANCHISEES SPRINT SIX AGENCIES ARE STILL IN THE RUNNING TO BECOME SPRINT CORPORATION'S SECOND AGENCY HANDLING LONG DISTANCE ADS FOR THE COMPANY'S NEW BUSINESS SERVICES GROUP THEY ARE WELLS RICH GREENE B. D. D. P. GREY ADVERTISING INTERPUBLIC GROUP'S LINTAS OMNICOM GROUP'S GOODBY BERLIN AND SILVERSTEIN AND SAATCHI AND SAATCHI'S BACKER SPIELVOGEL BATES AND CLIFF FREEMAN AND PARTNERS UNITS AN APRIL DECISION IS EXPECTED QUOTE FOR SALE ONE PIG FIVE HUNDRED FIFTY POUNDS HANDSOME AND PINK QUOTE THIS CLASSIFIED AD DIDN'T APPEAR IN ANY NEWSPAPER NOR WAS IT PINNED TO A BULLETIN BOARD IT WAS SCRAWLED ON A ONE THOUSAND LIRE NOTE THAT SEEMS TO HAVE MADE ITS WAY WALLET TO WALLET FROM VERONA TO CARPI A TRIP OF FIFTY FOUR MILES THERE IT JOINED A PRIVATE COLLECTION WHETHER THIS PARTICULAR PIGGY WENT TO MARKET ISN'T KNOWN A PENNY DOESN'T SEEM TO BE ENOUGH FOR ONE'S THOUGHTS IN ITALY WHERE IT'S A NATIONAL PASTIME TO MAKE STATEMENTS ASK QUESTIONS AND SELL THINGS ON PAPER MONEY THE PREFERRED MEDIUM IS THE ONE THOUSAND LIRE NOTE WHICH IS WORTH ABOUT SIXTY U. S. THOUGHTS MESSAGES RANGE FROM THE SPIRITUAL I'VE SEEN THE MADONNA TO THE OUTERSPATIAL YESTERDAY I SAW A FLYING SAUCER THEY INCLUDE CHAIN LETTERS LOTTERY NUMBERS VULGARITIES AND COMPLAINTS ABOUT SCHOOL ONE STUDENT FILLED A ONE THOUSAND LIRE BILL WITH NOTES FOR A HISTORY EXAM THE NAMES OF POLITICIANS SOCCER TEAMS AND HEAVY METAL ROCK GROUPS VIE FOR THE WHITE SPACE WHERE WATERMARKS OF MARCO POLO AND MARIA MONTESSORI LIE HIDDEN WHY DO ITALIANS VENT THEIR FEELINGS ON MONEY DOES THE DESIRE FOR SELF EXPRESSION OVERFLOW THE NORMAL CHANNELS IS THE IMPULSE JUNGIAN OR FREUDIAN OR PERHAPS A FORM OF FOOLSCAPOPHOBIA PEOPLE HAVE ACTUALLY STUDIED THIS WRITING ON A BANK NOTE IS BOTH MISCHIEVOUS AND CREATIVE ACCORDING TO SIRA SEBASTIANELLI AND IVAN BATTISTA ROME PSYCHOLOGISTS WHO HAVE PUBLISHED A ONE HUNDRED FORTY PAGE BOOK ON THE SUBJECT BUT IT'S ALSO A DESIRE TO LEAVE BEHIND A SIGN OF ONESELF OF ONE'S EXISTENCE OFTEN OF THE EXISTENCE OF AN ALTER EGO UNKNOWN TO ONESELF A DOUBLE WHICH ERUPTS UNFORESEEN A SHADOWY PART THAT WE DIDN'T SUSPECT WAS SO STRONG AND PRESENT OR MAYBE IT'S SIMPLER THAN THAT SAYS ANNA GRASSO ROSSETTI A GRAPHOLOGIST AND PSYCHOLOGIST FROM BRESCIA SOME PEOPLE THINK THAT AT THE RATE SOCIETY SPENDS MONEY HAS BECOME THE CHEAPEST AND MOST IMMEDIATE MEANS TO MAKE SOMETHING KNOWN TO SOMEONE EVEN MORE THAN THE MASS MEDIA PICK UP GRANDPA THE EXPERTS ON MONEY SCRIBBLERS SAY LOVE IS THE HOTTEST TOPIC IN CIRCULATION A COLLECTOR IN ROME WHO MOONLIGHTS AS A TOLLBOOTH ATTENDANT PUBLISHED A BOOK OF ONE THOUSAND LIRE SQUIBS HERE ARE SOME EXAMPLES OF PUTTING YOUR MOUTH WHERE YOUR MONEY IS QUOTE A KISS IS LIKE WHISKEY IT'S BETTER DOUBLE QUOTE A KISS IS LIKE A BOXER IT KNOCKS OUT YOUR HEART A KISS IS A NICE WAY OF SPITTING IN SOMEONE'S MOUTH DO YOU WANT TO BE SPIT ON THE CARPI COLLECTOR OSCAR SACCHI DOESN'T PSYCHOANALYZE HIS FELLOW CITIZENS BUT HE DOES SPEND HOURS AMASSING AND SORTING HIS TWELVE MILLION EIGHT HUNDRED SIXTY ONE THOUSAND NOTES IN THOUSAND LIRE DENOMINATIONS HE PRIDES HIMSELF ON HIS COLLECTION AND HIS LISTING IN THE ITALIAN EDITION OF THE GUINNESS BOOK OF RECORDS HE HOLDS THE RECORD FOR A COLLECTION OF BANK NOTES BEARING WRITING OR DRAWINGS BY UNKNOWN HAND COLLECTING HE SAYS IS NOT ONLY FUN IT'S A GOOD INVESTMENT TOO QUOTE I NETTED ABOUT EIGHT MILLION LIRE LAST YEAR FROM EXHIBITING MY COLLECTION QUOTE MR. SACCHI SAYS I WOULD HAVE MADE ONLY ABOUT TWO TO TWO AND A HALF MILLION IF I'D INVESTED THE MONEY IN TREASURY BONDS THE FORTY SEVEN YEAR OLD PART OWNER OF A CARPI BASED CLOTHING LABEL COMPANY IS WELL KNOWN LOCALLY BOTH FOR HIS COLLECTION AND FOR ACTING STINTS AS THE VILLAGE IDIOT HIS COLLECTION GROWS DAILY AS HE MAKES THE ROUNDS OF THIS RENAISSANCE TOWN IN NORTH CENTRAL ITALY GOT ANYTHING FOR ME TODAY HE ASKS TAXI DRIVERS NEWSSTAND OWNERS AND BARTENDERS THEY REACH FOR SMALL PILES OF BILLS THEY HAVE SET ASIDE FOR HIM HE THANKS THEM AND PAYS UP ALTHOUGH THE LOVE CATEGORY IS THE LARGEST IN MR. SACCHI'S COLLECTION WORTH FOUR MILLION FIVE HUNDRED THIRTY ONE THOUSAND LIRE BY ITSELF THE COLLECTION ALSO INCLUDES TWO HUNDRED THREE THOUSAND LIRE IN THE DRASTIC AND PESSIMISTIC CATEGORY AND SEVENTY SIX THOUSAND LIRE IN THE MAFIA AND DRUGS CATEGORY ONE POIGNANT LETTER TO NOBODY IN PARTICULAR PUT INTO CIRCULATION LIKE A BOTTLED MESSAGE AT SEA WAS WRITTEN SO IT SEEMS BY A VICTIM OF THE MAFIA I'M A GIRL FROM REGGIO CALABRIA WITH MAFIOSI PARENTS AND BROTHERS TWO OF MY BROTHERS HAVE BEEN KILLED I MET A GOOD CLEAN BOY AT THE BEACH AND HE HAS ASKED ME TO MARRY HIM HE DOESN'T KNOW ABOUT MY FAMILY I WANT TO GO LIVE WITH HIM BUT MY PARENTS ARE GIVING ME AN APARTMENT AND THEY WON'T LET ME LEAVE REGGIO HE'S AGREED TO MOVE HERE BUT HE DOESN'T KNOW ANYTHING ABOUT MY FAMILY AND I'M AFRAID TO TELL HIM THE NEWS I TALKED TO MY BIG BROTHER WHO ADVISED ME TO KEEP QUIET AND SAID AFTERWARD HE'D TAKE CARE OF IT I'M AFRAID THAT WHEN HE FINDS OUT HE'LL FEEL BETRAYED I LOVE HIM I'M UNDECIDED AND AFRAID SANTINA PSYCHOLOGISTS LIKE MS. SEBASTIANELLI AND MR. BATTISTA BELIEVE THESE DIRECT CRIES FOR HELP ALONG WITH THE OTHER LIGHTER MESSAGES BY JOKESTERS OR ADOLESCENTS IN LOVE REVEAL A YOUNG ITALIAN POPULATION THAT IS REACHING OUT FOR ATTENTION MS. ROSSETTI THE GRAPHOLOGIST HAS EXTENSIVELY PHOTOGRAPHED OUTDOOR GRAFFITI TO COMPARE THEM TO THEIR PORTABLE COUNTERPARTS ON BANK NOTES SHE HAS CONCLUDED THAT ALL MESSAGE WRITERS HAVE THREE MAIN CHARACTERISTICS IN COMMON QUOTE ONE THEY'RE INFANTILE TWO THEY HAVE THE DESIRE TO AFFIRM THEIR EXISTENCE TO LEAVE THEIR MARK SHE SAYS AND THREE THEY'RE LACKING IN AFFECTION EXCEPT FOR THOSE WHO WRITE LOVE NOTES AN EXAMPLE OF MS. ROSSETTI'S ANALYSIS A NAME WRITTEN IN ROUND ATTACHED LETTERS WIDER THAN THEY ARE LONG WAS WRITTEN BY SOMEONE SWEET AFFECTIONATE DESIRING TO REVEAL HER FEELINGS WITH A ROMANTIC APPROACH HER ONLY FAULT A LITTLE MATERIALISTIC EGOISM NOT ALL THESE LONGHAND LONELY HEARTS ARE YOUNG OF COURSE ONE PERSONAL AD PLACED ON A ONE THOUSAND LIRE NOTE READS COMPANION SOUGHT ABOUT FIFTY FIVE YEARS OLD I'VE BEEN RETIRED THREE YEARS AND OWN APARTMENT AND GARAGE QUOTE HE GAVE HIS PHONE NUMBER ODDLY ENOUGH TWO YEARS INTO ITALY'S CORRUPTION SCANDAL NEITHER ONE THOUSAND LIRE NOTES NOR SUBWAY WALLS SHOW DEEP ANGER TOWARD POLITICIANS GRAFFITI ARTISTS ENCOURAGE AND THANK THOSE CONDUCTING THE INVESTIGATION SUCH AS THE MAIN PUBLIC PROSECUTOR ANTONIO DI PIETRO GRAZIE DI PIETRO THEY OCCASIONALLY MOCK A POLITICIAN UNDER INVESTIGATION LIKE THE BANK NOTE WITH A DRAWING OF FORMER PRIME MINISTER BETTINO CRAXI DRESSED AS A JAILBIRD BUT THEY DON'T GO MUCH FURTHER EVERYONE TALKS ABOUT POLITICS ALL THE TIME BUT THEY'RE HOLDING BACK EXPLORING WHAT THEIR NEIGHBOR THINKS SAYS SOCIOLOGIST AND COLUMNIST FRANCESCO ALBERONI IN ELECTIONS THIS MARCH HE ADDS HALF THE POLITICIANS WILL BE SENT PACKING THAT GIVES PEOPLE SATISFACTION MEANWHILE ITALIANS ARE TURNING THEIR PUBLIC SCRIBBLING TO MORE IMPORTANT MATTERS LIKE MAKING FUN OF CARABINIERI THE MILITARY POLICE CARABINIERE JOKES IN ITALY ARE LIKE POLISH JOKES IN AMERICA OR RUSSIAN JOKES IN POLAND A ONE THOUSAND LIRE BILL READS HOW TO MAKE A CARABINIERE ANGRY TURN OVER ON THE OTHER SIDE IT READS TURN OVER OHIO INSURANCE REGULATORS ARE INVESTIGATING WHETHER METROPOLITAN LIFE INSURANCE COMPANY VIOLATED STATE INSURANCE REGULATIONS WHEN THE COMPANY WON AN EXCLUSIVE CONTRACT TO SELL LIFE INSURANCE TO STATE EMPLOYEES THE MATTER IS SEPARATE FROM AN EIGHTEEN STATE INVESTIGATION INTO METLIFE'S METHODS OF SELLING LIFE INSURANCE TO INDIVIDUALS STILL IT ADDS TO THE QUESTIONS ABOUT THE MARKETING PRACTICES OF THE BIG LIFE INSURER THE OHIO INVESTIGATION CENTERS ON METLIFE'S HIRING IN NINETEEN EIGHTY SEVEN OF AN INSURANCE BROKER ASHER SCHAPIRO TO LOBBY THE STATE FOR THE GROUP INSURANCE CONTRACT SHORTLY THEREAFTER MR. SCHAPIRO BECAME A CONSULTANT FOR THE STATE TO RECOMMEND WHICH COMPANY SHOULD GET THE CONTRACT METLIFE WON THE CONTRACT IN THE FALL OF NINETEEN EIGHTY SEVEN QUOTE WE'RE INVESTIGATING WHETHER MET MIGHT HAVE VIOLATED INSURANCE LAWS QUOTE SAID DAVID RANDALL DEPUTY INSURANCE SUPERINDENDENT FOR OHIO MR. SCHAPIRO IS ALSO BEING INVESTIGATED NEW YORK BASED METLIFE DENIED ANY WRONGDOING AND SAID IT IS COOPERATING WITH THE STATE INVESTIGATION JOHN DOWD THE ATTORNEY FOR MR. SCHAPIRO SAID HIS CLIENT DIDN'T VIOLATE ANY LAWS BEGINNING IN NINETEEN EIGHTY SIX OHIO BEGAN TO LOOK INTO SELECTING A GROUP LIFE INSURANCE CONTRACT FOR SIXTY THOUSAND GOVERNMENT EMPLOYEES EMPLOYEES WOULD PAY FOR THE INSURANCE THEMSELVES BUT THEY WOULD GET A BETTER DEAL THROUGH THE PROGRAM THAN IF THEY BOUGHT INSURANCE ON THEIR OWN METLIFE AGREED TO PAY MR. SCHAPIRO A BROKER FROM TEANECK N. J. THREE HUNDRED FIFTY THOUSAND DOLLARS IF IT WON THE CONTRACT MR. SCHAPIRO THEN ARRANGED TO PAY FORMER OHIO DEMOCRATIC PARTY CHAIRMAN PAUL TIPPS ONE HUNDRED THOUSAND DOLLARS TO LOBBY THE STATE EVEN THOUGH THE STATE KNEW MR. SCHAPIRO HAD BEEN HIRED BY METLIFE IT ASKED THE BROKER TO EVALUATE CONTRACT PROPOSALS AND SELECT WHICH INSURANCE COMPANY THE STATE SHOULD HIRE MR. SCHAPIRO RECOMMENDED METLIFE SHORTLY AFTER METLIFE GOT WORD THAT IT WON THE COMPANY SENT MR. SCHAPIRO A CHECK FOR THREE HUNDRED FIFTY THOUSAND DOLLARS MR. DOWD MR. SCHAPIRO'S ATTORNEY SAID THE MONEY WASN'T A FEE BUT PAYMENT TO REIMBURSE MR. SCHAPIRO FOR EXPENSES IN SETTING UP THE INSURANCE PROGRAM HE ADDED THAT MR. SCHAPIRO WAS NEVER COMPENSATED BY THE STATE INSTEAD MR. SCHAPIRO'S COMPENSATION WOULD COME SOLELY FROM COMMISSIONS ON THE SALE OF LIFE INSURANCE BY METLIFE ACCORDING TO MR. DOWD THE ENTIRE PROCESS WAS ABOVE BOARD HE SAID MR. SCHAPIRO TOLD THE STATE FROM THE BEGINNING THAT HE WOULD PROBABLY SELECT METLIFE FOR THE CONTRACT BECAUSE IT WAS THE ONLY COMPANY WITH THE ABILITY TO HANDLE SUCH A CONTRACT SCOTT SOLSMAN BENEFITS ADMINISTRATOR WITH THE OHIO DEPARTMENT OF ADMINISTRATIVE SERVICE CONFIRMED THAT THE STATE KNEW ABOUT MR. SCHAPIRO'S RELATIONSHIP WITH METLIFE BUT THAT THE STATE REFUSED TO SEVER ITS TIES TO HIM IN A MEMO MR. SOLSMAN WROTE TO HIS BOSS IN NINETEEN EIGHTY SEVEN MR. SOLSMAN MENTIONED HIS CONCERN ABOUT A QUID PRO QUO ARRANGEMENT BETWEEN METLIFE AND MR. SCHAPIRO'S COMPANY MR. SCHAPIRO HAS BEEN IN THE SPOTLIGHT BEFORE IN NINETEEN NINETY TWO A FEDERAL GRAND JURY IN THE EASTERN DISTRICT OF MICHIGAN INDICTED MR. SCHAPIRO ACCUSING HIM OF PAYING NINETY EIGHT THOUSAND DOLLARS TO A FORMER EMPLOYEE OF AMERICAN MOTORS CORPORATION AND THREE OTHERS TO SELL INSURANCE TO THE CAR MAKER'S EMPLOYEES MR. SCHAPIRO WAS ACQUITTED DETAILS ABOUT THE METLIFE CONTRACT IN OHIO CAME OUT IN A LAWSUIT AGAINST METLIFE BROUGHT BY A KENTUCKY INSURANCE BROKER TERRY HAVENS IN THE CASE IN MANHATTAN FEDERAL COURT MR. HAVENS CHARGES THAT THE COMPANY OWES HIM A COMMISSION FOR A CONTRACT IT WON TO SELL INSURANCE TO STATE EMPLOYEES IN ILLINOIS METLIFE DECLINED COMMENT BECAUSE THE LITIGATION IS PENDING DOCUMENTS IN THE CASE HAVE BEEN SEALED AT REQUEST OF THE COMPANY BROKERAGE FIRM CHATFIELD DEAN AND COMPANY SETTLED WITH THE SECURITIES AND EXCHANGE COMMISSION A CIVIL CASE INVOLVING ITS TRADING SALES AND SUPERVISORY PRACTICES THE COMPANY AGREED TO PAY SEVEN HUNDRED FIFTY THOUSAND DOLLARS IN CIVIL PENALTIES AND SEVEN INDIVIDUALS INCLUDING THE FIRM'S TWO TOP OFFICERS ALSO WERE FINED AND PENALIZED THE FIRM AND INDIVIDUALS DIDN'T ADMIT OR DENY CHARGES THE S. E. C. CASE FOLLOWS A DISCIPLINARY PROCEEDING BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN DECEMBER THAT ORDERED THE FIRM TO REPAY CUSTOMERS ONE POINT NINE MILLION DOLLARS AND FINED THE FIRM SIX HUNDRED EIGHTY FIVE THOUSAND DOLLARS TO SETTLE CHARGES OF STOCK MANIPULATION AND OTHER VIOLATIONS A NUMBER OF EXECUTIVES ALSO WERE FINED AND DISCIPLINED IN THAT PROCEEDING IN THE S. E. C. SETTLEMENT CHATFIELD PRESIDENT SANFORD D. GREENBERG WAS FINED ONE HUNDRED THOUSAND DOLLARS AND SUSPENDED FOR SIX MONTHS FOLLOWING HIS SUSPENSION SENIOR EXECUTIVE VICE PRESIDENT ROBERT L. LEMON WILL BE SUSPENDED IN ANY SUPERVISORY CAPACITY FOR SIX MONTHS AND FINED FIFTY THOUSAND DOLLARS THE FIRM NOTED THE SUSPENSIONS WILL BE SERVED SEQUENTIALLY IN THE SETTLEMENT CHATFIELD AGREED TO RETAIN AS CONSULTANTS FORMER S. E. C. CHAIRMAN DAVID S. RUDER AND FORMER S. E. C. GENERAL COUNSEL DANIEL L. GOELZER TO IMPLEMENT RECOMMENDATIONS TO IMPROVE TRADING SALES AND SUPERVISORY COMPLIANCE PRACTICES MR. RUDER HAS BEEN WORKING WITH THE BROKERAGE FIRM SINCE APRIL NINETEEN NINETY TWO MR. RUDER SAID THE FIRM'S CURRENT SALES PRACTICES MARK UP POLICIES AND COMPLIANCE ENVIRONMENT QUOTE ARE ALL OF VERY HIGH QUALITY QUOTE THE COMPANY ALSO SAID IT ELIMINATED COMMISSION STRUCTURES THAT REWARDED A BROKER FOR SELLING ONE PRODUCT OVER ANOTHER THE S. E. C. SETTLEMENT REQUIRES CHATFIELD TO RECORD ALL TELEPHONE CONVERSATIONS AND RETAIN THEM FOR FIVE YEARS CHICAGO BRANCH MANAGER KEVIN C. GROM WAS FINED SEVENTY FIVE THOUSAND DOLLARS AND BARRED WITH A RIGHT TO REAPPLY AFTER THREE YEARS ENGLEWOOD COLORADO BRANCH MANAGER JOHN K. WATTON WAS FINED FIFTY THOUSAND DOLLARS AND BARRED WITH A RIGHT TO REAPPLY AFTER TWO YEARS ENGLEWOOD ASSISTANT BRANCH MANAGER ANTHONY G. DECAMILLIS WAS FINED TWENTY FIVE THOUSAND DOLLARS AND BARRED WITH A RIGHT TO REAPPLY AFTER ONE YEAR WILLIAM R. MACCALLUM HEAD TRADER WAS FINED FIFTY THOUSAND DOLLARS AND BARRED WITH A RIGHT TO REAPPLY AFTER ONE YEAR FORMER VICE PRESIDENT OF COMPLIANCE KENNETH S. BERNSTEIN WAS FINED FIFTY THOUSAND DOLLARS AND BARRED IN CERTAIN SUPERVISORY CAPACITIES WITH A RIGHT TO REAPPLY AFTER TWO YEARS FOREIGN COMPANIES ARE DIGGING IN THEIR HEELS AGAINST SURCHARGES IMPOSED ON SOME PRICES AND SERVICES FOR FOREIGNERS FOLLOWING JANUARY'S CURRENCY REFORMS BUSINESS GROUPS REPRESENTING HUNDREDS OF U. S. EUROPEAN AND ASIAN COMPANIES HAVE SENT LETTERS TO TOP CHINESE LEADERS TO PROTEST WHAT THEY DESCRIBE AS QUOTE DISCRIMINATORY QUOTE FIFTY PERCENT INCREASES ON PHONE RATES SALARIES OF CHINESE STAFF AND OTHER CHARGES THE CONFLICT HIGHLIGHTS THE CONFUSION THAT HAS FOLLOWED CHINA'S RUSHED INTRODUCTION OF A RAFT OF ECONOMIC REFORMS EARLY THIS YEAR BUT FOR MANY OVERSEAS INVESTORS IT ALSO RAISES QUESTIONS OVER BEIJING'S ABILITY TO ENSURE A FAIR RULE BY LAW ENVIRONMENT FOR DOING BUSINESS IT'S THE GREED FACTOR AND RIGHT NOW IT'S INCREASING ACROSS THE BOARD IN CHINA SAYS THE BEIJING REPRESENTATIVE OF A U. S. SERVICES COMPANY IF DISCRIMINATION AGAINST FOREIGN COMPANIES CONTINUES HERE LIKE THIS CHINA'S INVESTMENT CLIMATE WILL BE AFFECTED FOR THE USUALLY LOW PROFILE FOREIGN BUSINESS COMMUNITY THE CURRENT CONTROVERSY IS BORDERING ON THE DRAMATIC BUSINESS GROUPS ARE CHURNING OUT FAXES ORGANIZING SUPPORT AMONG MEMBER COMPANIES AND BRIEFING THE FOREIGN MEDIA THE AMERICAN CHAMBER OF COMMERCE HAS CONDUCTED A POLL OF U. S. FIRMS AND SET UP A HOTLINE MANY U. S. AND EUROPEAN COMPANIES ARE REFUSING TO PAY THE SURCHARGES IN RESPONSE SOME CHINESE ORGANIZATIONS INVOLVED ARE TURNING AWAY ANY PAYMENTS THAT ARE LESS THAN THE BILLED AMOUNT THE FOREIGN ENTERPRISE SERVICE CORPORATION WHICH PROVIDES LOCAL EMPLOYEES FOR MANY FOREIGN FIRMS HAS THREATENED TO KEEP WORKERS AT HOME IF THE FIRMS DON'T PAY OFFICIALS AT THE COMPANY KNOWN AS FESCO DECLINED TO COMMENT THE IMMEDIATE CAUSE OF THE CONFLICT IS BEIJING'S UNIFICATION OF THE YUAN ON JANUARY FIRST PREVIOUSLY CHINA HAD OPERATED ON A TWO TIER SYSTEM WITH ONE CURRENCY RENMINBI FOR THE CHINESE AND A SECOND FOREIGN EXCHANGE CERTIFICATES OR F. E. C.S FOR FOREIGNERS WHILE THE TWO RATES OFFICIALLY WERE EQUAL THE RENMINBI ACTUALLY TRADED AT A LOWER RATE OF EIGHT POINT SEVEN TO ONE U. S. DOLLAR AT THE COUNTRY'S FOREIGN EXCHANGE TRADING CENTERS COMPARED WITH THE F. E. C.'S OFFICIALLY SET RATE OF FIVE POINT SEVEN WHEN BEIJING UNIFIED ITS CURRENCY AND PEGGED THE NEW OFFICIAL RATE TO THE SWAP MARKET RATE SOME CHINESE ORGANIZATIONS RAISED PRICES TO MAKE UP FOR THE DIFFERENCE CAUSED BY THE YUAN'S SUBSEQUENT DEVALUATION UNDERLYING THE ISSUE IS A LARGER ONE OF WHAT FOREIGN COMPANIES SEE AS A POLICY OF DISCRIMINATION AGAINST THEM FOREIGNERS HAVE ALWAYS HAD TO PAY MORE FOR SERVICES RANGING FROM RENT TO TELEPHONE BILLS TO HOTEL RATES TO MUSEUM ENTRANCE FEES BECAUSE SOME FOREIGN FIRMS ARE RESTRICTED TO HIRING LOCAL WORKERS THROUGH ORGANIZATIONS LIKE FESCO THEY ARE FORCED TO PAY SALARIES MUCH HIGHER THAN THE GOING RATE FOR PHILIP CARMICHAEL'S HIGH TECHNOLOGY INSTRUMENTATION COMPANY THE SAVINGS FROM THE YUAN'S DEVALUATION SHOULD HAVE BEEN SUBSTANTIAL HIS COMPANY EMPLOYS SOME THIRTY FIVE FESCO EMPLOYEES MR. CARMICHAEL WHO SERVES AS AMERICAN CHAMBER PRESIDENT HERE ESTIMATES THAT HIS COMPANY'S ANNUAL SAVINGS SHOULD TOTAL THIRTY THOUSAND DOLLARS TO FIFTY THOUSAND DOLLARS IF CHINESE ORGANIZATIONS HADN'T IMPOSED A FIFTY PERCENT SURCHARGE HE MAINTAINS THAT BY CHINESE REGULATIONS THE SURCHARGES ARE ILLEGAL THIS ISSUE IS AT THE HEART OF MANY MANY PROBLEMS IN CHINA HE SAYS IT'S A QUESTION OF WHETHER CHINA IS WILLING AND ABLE TO LIVE BY RULE OF LAW IN THIS PART OF ITS DEVELOPMENT OVERTIME IS BECOMING MORE COMMONPLACE IN THE AUTO INDUSTRY GENERAL MOTORS CORPORATION FORD MOTOR COMPANY AND CHRYSLER CORPORATION ALL REPORTED OVERTIME SHIFTS AT VARIOUS U. S. ASSEMBLY PLANTS LAST WEEK ALTOGETHER THE TEN DOMESTIC AUTO MAKERS SAID THEY PLANNED TO BUILD TWO HUNDRED SIXTY FIVE THOUSAND NINE HUNDRED SIXTEEN CARS AND TRUCKS LAST WEEK UP SIXTEEN POINT NINE PERCENT FROM TWO HUNDRED TWENTY SEVEN THOUSAND FOUR HUNDRED FOURTEEN VEHICLES BUILT IN THE SAME WEEK A YEAR AGO THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT DEL WEBB CORPORATION ONE HUNDRED MILLION DOLLARS OF SENIOR SUBORDINATED DEBENTURES DUE FEBRUARY FIFTEENTH TWO THOUSAND SIX PRICED AT PAR TO YIELD NINE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE DEBENTURES ARE NOT CALLABLE FOR FIVE YEARS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY ALANTEC CORPORATION INITIAL OFFERING OF TWO POINT FIVE MILLION COMMON SHARES PRICED AT THIRTEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY HAMBRECHT AND QUIST AND KIDDER PEABODY AND COMPANY MORGAN STANLEY AFRICA INVESTMENT FUND INCORPORATED INITIAL OFFERING OF FIFTEEN POINT FOUR MILLION COMMON SHARES PRICED AT FIFTEEN DOLLARS EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY AND COMPANY FEDERAL NATIONAL MORTGAGE ASSOCIATION FIVE HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INCORPORATED THE OFFERING SERIES NINETEEN NINETY FOUR TO THIRTY FOUR IS BACKED BY THE AGENCY'S FIFTEEN YEAR SIX PERCENT MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION FIVE HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY PAINEWEBBER INCORPORATED THE OFFERING SERIES NINETEEN NINETY FOUR TO THIRTY SIX IS BACKED BY THE AGENCY'S THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT ONE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS FEDERAL HOME LOAN MORTGAGE CORPORATION FOUR HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY NOMURA SECURITIES INTERNATIONAL INCORPORATED THE OFFERING SERIES ONE THOUSAND SIX HUNDRED NINETY SEVEN IS BACKED BY THE AGENCY'S FIFTEEN YEAR SIX PERCENT MORTGAGE SECURITIES FEDERAL HOME LOAN BANK SYSTEM EIGHTY FIVE MILLION DOLLARS OF NOTES DUE FEBRUARY FOURTEENTH NINETEEN NINETY SIX PRICED AT PAR TO YIELD FOUR POINT TWO TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED FLAT TO TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY DAVID JACKSON FORTY SEVEN YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MICROEMULSION TECHNOLOGY COMPANY DOCTOR JACKSON SUCCEEDS ALAN DICKASON FIFTY SEVEN WHO WAS NAMED CHIEF SCIENTIFIC OFFICER A NEW POSITION THE DE BENEDETTI STAKE WAS INCREASED THROUGH THE PURCHASE OF TWENTY MILLION SHARES AT ONE THOUSAND FOUR HUNDRED THIRTY LIRE EIGHTY FOUR CENTS U. S. A SHARE COFIDE SAID THE PASSION AROUSED BY ANY QUESTIONING OF THE STANDARD VERSION OF EVOLUTION NEVER CEASES TO AMAZE ME LETTERS TO THE EDITOR DECEMBER FIFTEENTH AND QUOTE A SCOPES TRIAL FOR THE NINETIES QUOTE EDITORIAL PAGE DECEMBER SIXTH EVOLUTION AS A SERIOUS SCIENTIFIC CONCEPT WAS INTRODUCED BY LAMARCK A HALF CENTURY BEFORE DARWIN'S ORIGIN OF THE SPECIES IT IS ACCEPTED BY MANY LEADING RELIGIOUS THINKERS WHO ALSO FIRMLY BELIEVE IN A CREATOR ALL THE FUSS BEGAN WITH THE INTRODUCTION OF NATURAL SELECTION AS THE MECHANISM OF EVOLUTION ALTHOUGH CREDIT FOR THIS CONCEPT USUALLY GOES TO DARWIN ALFRED RUSSELL WALLACE IS ACKNOWLEDGED AS A CO DISCOVERER RECENT RESEARCH INDICATES THAT WALLACE WAS IN FACT THE FIRST ONE TO EXPRESS THIS VIEW FOR PUBLICATION BUT THAT DARWIN CARRIED OUT SOME FANCY FOOTWORK TO GAIN PRIORITY FOR THE DISCOVERY EVERYONE AGREES THAT WIDE ACCEPTANCE OF NATURAL SELECTION CAME WITH DARWIN'S FAMOUS BOOK OF ONE THOUSAND EIGHT HUNDRED FIFTY NINE BUT WALLACE CONTINUED TO BE THE MOST CONSISTENT ADVOCATE OF NATURAL SELECTION THROUGH THE REST OF THE NINETEENTH CENTURY WHILE DARWIN WAS FLIRTING WITH LAMARCK'S INHERITANCE OF ACQUIRED CHARACTERISTICS THE POINT OF ALL THIS IS THAT WALLACE AFTER MUCH DELIBERATION REJECTED NATURAL SELECTION FOR THE ORIGIN OF MAN AND CONCLUDED THAT HUMANS COULD HAVE ARISEN ONLY THROUGH THE INTERVENTION OF WHAT HE CALLED A HIGHER INTELLIGENCE ON THIS SCORE I SUPPOSE WALLACE WOULD NOT HAVE BEEN ALLOWED TO TEACH A BASIC COURSE ON EVOLUTION AT SAN FRANCISCO STATE NORTH KOREA MAY BE THE MOST VEXING PLACE ON EARTH RIGHT NOW WHILE IT OBSERVES THE DIPLOMATIC FORMS PUNCTILIOUSLY AT A FUNDAMENTAL LEVEL IT JUST DOESN'T OPERATE LIKE THE REST OF US NORTH KOREA'S WEIRDNESS WOULDN'T MATTER SO MUCH IF IT WERE SOME HARMLESS BACKWATER IT IS NOT IT IS NOW PLAYING CHICKEN WITH ITS NUCLEAR PROGRAM REFUSING TO ALLOW INSPECTIONS TO WHICH IT IS SUBJECT UNDER THE NUCLEAR NON PROLIFERATION TREATY DESPITE RECENT TALK OF PROGRESS ON INSPECTIONS NORTH KOREA ON FRIDAY DENOUNCED THE INTERNATIONAL ATOMIC ENERGY AGENCY'S QUOTE ABSURD QUOTE ASSERTION THAT THE KOREANS WERE MAKING SERIOUS INSPECTIONS IMPOSSIBLE ALL THE NORTH KOREANS HAD DONE WAS TELL THE AGENCY THAT REGULAR INSPECTIONS OF ITS CIVILIAN SITES WOULD BE FORBIDDEN AND A LOOK AT TWO UNDECLARED SITES WAS OUT OF THE QUESTION MEANWHILE PRESIDENT CLINTON WAS TELLING C. N. N. LAST WEEK IT'S CLEAR THE NORTH KOREANS ARE TRYING TO DEVELOP THE BOMB MR. CLINTON'S REACTION TO THIS IS THAT THE U. S. WILL CONTINUE TO WORK VERY HARD AND TO BE VERY FIRM ABOUT NOT WANTING KOREA TO JOIN THE FAMILY OF NUCLEAR STATES WE'RE NOT REASSURED IT NOW MUST BE CLEAR TO THE MOST CAUTIOUS OF COMPROMISERS THAT THE USUAL COMBINATION OF CARROTS AND STICKS OR IN THE CASE OF THE NEGOTIATIONS WITH THE U. S. CARROTS AND CARROTS SIMPLY HASN'T WORKED THE C. I. A. THINKS THAT PYONGYANG ALREADY HAS A BOMB OR TWO IN NOVEMBER PRESIDENT CLINTON FLATLY SAID THE U. S. COULD NOT ALLOW THIS AND IN THE TREMENDOUS EFFORT TO GET INSPECTIONS OF SOME KIND WE DIDN'T HEAR MUCH ABOUT WHAT THE CONSEQUENCES WOULD BE IF SOMETHING TRULY BAD WAS FOUND THE U. S. SIDE HAS OFFERED LOTS OF BLANDISHMENTS CANCELLATION OF ANNUAL MILITARY EXERCISES HIGH LEVEL TALKS AND THE POSSIBILITY OF AID AND DIPLOMATIC RELATIONS THAT NORTH KOREA WOULD LIKE TO HAVE ALL THESE CARROTS HAVE NOT APPEARED TO DIM PYONGYANG'S DETERMINATION TO DO WHATEVER IT IS DOING THE ASSUMPTION MUST THEREFORE BE THAT NORTH KOREA IS DETERMINED TO HAVE ITS BOMB WOULD PYONGYANG USE IT MAYBE NOT THAT IS THE ONE THING THAT COULD PROVOKE RETALIATION BUT THERE ARE SOME TROUBLING SIGNS TO CONSIDER JANE'S DEFENSE WEEKLY HAS REPORTED ON THE DEVELOPMENT OF THE NODONG ONE SHORT TO INTERMEDIATE RANGE BALLISTIC MISSILE AND RUSSIA THROUGH A JAPANESE COMPANY HAS JUST SOLD FORTY ATTACK SUBMARINES TO PYONGYANG THESE SUBS ALL ANCIENT BY NAVAL STANDARDS WERE SUPPOSEDLY SOLD FOR SCRAP METAL BUT WE THINK SKEPTICISM IS THE BETTER PART OF DIPLOMACY HERE AFTER ALL GIVEN THE STATE OF NORTH KOREAN INDUSTRY IT WOULD BE CHEAPER TO STRIP A FEW DISUSED LOCAL PLANTS FOR SCRAP INSTEAD OF SPENDING PRECIOUS HARD CURRENCY ON OLD SUBS THERE HAS ALSO BEEN MUCH TALK IN THE OFFICIAL PRESS OF REUNIFICATION IN NINETEEN NINETY FIVE A PYONGYANG TIMES EDITORIAL LAST WEEK NOTED WITH A SENSE OF URGENCY IT IS OUR NATION'S SUPREME TASK TO REUNIFY THE COUNTRY IN THE NINETIES AND HAND DOWN A REUNIFIED COUNTRY TO GENERATIONS TO COME AND IN DECEMBER A COMMUNIQUE AFTER THE CENTRAL COMMITTEE PLENUM SAID THAT THE ECONOMY WAS ROTTEN BLAMING WESTERN AGGRESSION FOR THE SITUATION WE COULD NOT BUT TAKE RESOLUTE SELF DEFENSE MEASURES THE COMMUNIQUE NOTED PUTTING THE WHOLE COUNTRY THE ENTIRE PEOPLE AND THE WHOLE ARMY IN A SEMIWAR STATE THAT MAY BE RHETORICAL EXAGGERATION BUT NORTH KOREA IS STILL THE WORLD'S MOST INTENSELY MILITARIZED COUNTRY WITH THE LEAST PREDICTABLE LEADERSHIP SUCH PRONOUNCEMENTS BEAR WATCHING UNDER THESE CIRCUMSTANCES ONE HAS TO QUESTION PRESIDENT CLINTON'S REFLEX IN OFFERING MORE AND MORE CONCESSIONS TO ENTICE GOOD OR AT LEAST NOT AWFUL BEHAVIOR FROM THE REGIME THE LESSON THAT KIM IL SUNG AND IRAQ AND IRAN AND LIBYA COULD EASILY DRAW IS THAT BAD BEHAVIOR PAYS FOR ALL THESE REASONS WE THINK IT'S TIME TO BRANDISH THE STICK YES WE KNOW CHINA IS NOT KEEN TO BE TOO TOUGH ON ITS SOCIALIST NEIGHBOR AND WE KNOW JAPAN DOESN'T WANT TO STOP THE FLOW OF FUNDS TO NORTH KOREA AND WE KNOW THE U. N. CAN'T BE EXPECTED TO DO MUCH STILL AT SOME POINT SERIOUSNESS AND CREDIBILITY DEMAND THAT PYONGYANG BEGIN TO INCUR A COST FOR ITS ACTIONS AS I SAT IN THE NEW YORK STATE ASSEMBLY LISTENING TO GOVERNOR MARIO CUOMO'S STATE OF THE STATE ADDRESS TWO WEEKS AGO I HAD THE IMPRESSION THE GOVERNOR WAS AUDITIONING FOR A PART IN YET ANOTHER REMAKE OF QUOTE INVASION OF THE BODY SNATCHERS QUOTE FOR ROUGHLY ONE HOUR IT SEEMED THAT RONALD REAGAN INHABITED THE BODY OF MARIO CUOMO NONETHELESS THIS WEEK MR. CUOMO PROPOSED A SIXTY TWO POINT FIVE BILLION DOLLAR BUDGET FOR NINETEEN NINETY FOUR THE LARGEST IN THE STATE'S HISTORY AND PROBABLY THE LARGEST IN THE U. S. IN HIS ADDRESS THE NEW IMPROVED CUOMO SAID THE WAY TO CREATE JOBS IS TO LOWER CORPORATE TAXES AND HAVE A MORE HOSPITABLE ENVIRONMENT FOR BUSINESS THIS CLAIM OBVIOUSLY WAS MADE BY THE CUOMO FACSIMILE SINCE THE REAL MARIO CUOMO SPOKE AT THE DEMOCRATIC CONVENTION IN NINETEEN NINETY TWO THAT MAN ARGUED THAT SUPPLY SIDE ECONOMICS LOWERING TAXES TO PROMOTE INVESTMENT WAS VOODOO ECONOMICS FOR TWELVE YEARS NEW YORK HAS BEEN IN A METAPHORICAL FIRESTORM NEW YORK HAS SEVEN POINT TWO PERCENT OF THE NATION'S POPULATION AND FIFTEEN PERCENT OF THE NATION'S ACCUMULATED DEBT IT HAS EIGHTEEN POINT FIVE PERCENT OF THE MEDICAID EXPENDITURES WITH ONLY EIGHT PERCENT OF THE MEDICAID RECIPIENTS IT HAS THIRTY FOUR PERCENT OF THE NATION'S WELFARE RECIPIENTS ONE POINT ONE MILLION IN NEW YORK CITY ALONE FORTY PERCENT OF ALL THE JOBS LOST IN THIS COUNTRY SINCE NINETEEN EIGHTY NINE WERE LOST HERE FIVE HUNDRED SEVENTY TWO THOUSAND JOBS WERE RELOCATED OR DISAPPEARED GOVERNOR CUOMO RECENTLY HAS PRESENTED HIMSELF AS A LOW TAX GOVERNOR HE AND HIS STAFF HAVE NOTED THAT NEW YORK'S INCOME TAX RATE IS AT ITS LOWEST LEVEL IN THIRTY YEARS THAT NEW YORK RANKS TWENTY FOURTH AMONG STATES IN THE PERCENTAGE OF INCOME TAX PAID IN STATE TAXES THAT GOVERNMENT JOBS HAVE BEEN REDUCED BY THIRTEEN PERCENT SINCE NOVEMBER NINETEEN NINETY AND THAT NEW YORK HELD THE LINE ON TAXES THROUGH THE PAST FOUR BUDGET YEARS THESE ARGUMENTS REPRESENT THE GOVERNOR'S MANTRA ABOUT HIS PERFORMANCE AND THE BASIS ON WHICH HIS NEXT CAMPAIGN WILL BE ORGANIZED BUT ARE THESE ARGUMENTS ACCURATE SINCE MR. CUOMO BECAME GOVERNOR IN NINETEEN EIGHTY THREE THE TAX RATE HAS INDEED GONE DOWN AS HE REPORTS BUT ACTUAL TAXES FOR EACH INDIVIDUAL HAVE GONE UP DRAMATICALLY IN PART THIS IS DUE TO STATE MANDATES THAT FORCE LOCALITIES TO BEAR THE FINANCIAL BRUNT OF GOVERNMENT REQUIREMENTS IN RESPONSE TO THESE STATE DEMANDS LOCALITIES HAVE TWO OPTIONS RAISE PROPERTY TAXES OR SALES TAXES THIS IS PRECISELY WHAT HAS BEEN DONE IN THE PAST ELEVEN YEARS NEW YORK HAS THE HIGHEST COMBINED STATE AND LOCAL TAXES PER CAPITA IN THE NATION THREE THOUSAND TWO HUNDRED SIXTY SEVEN DOLLARS A RATE THAT IS SIXTY TWO PERCENT HIGHER THAN THE NATIONAL AVERAGE ACCORDING TO THIS MONTH'S MONEY MAGAZINE IF ONE CONSIDERS A TWO INCOME FAMILY OF FOUR WITH INCOME OF ROUGHLY EIGHTY THOUSAND DOLLARS THE TAX BILL IN NEW YORK STATE LEAVING OUT FEDERAL TAXES IS ELEVEN THOUSAND TWENTY DOLLARS AS OPPOSED TO A ONE THOUSAND SIX HUNDRED NINETY FOUR DOLLAR TAB IN ALASKA NEW YORK'S SEVEN POINT EIGHT SEVEN FIVE PERCENT INCOME TAX IS FIFTY FOUR PERCENT ABOVE THE AVERAGE OF CONTIGUOUS STATES THE STATE'S TEN POINT THREE FIVE PERCENT CORPORATE TAX IS THE SECOND HIGHEST IN THE NATION AFTER CONNECTICUT THE DIFFERENCE BY THE WAY IS NEGLIGIBLE AND FIFTY THREE PERCENT ABOVE THE NATIONAL AVERAGE THE STATE DISCOURAGES BUSINESS ACTIVITY WITH ITS HIGH CORPORATE TAXES IT ALSO DOES SO WITH AN EFFECTIVE CAPITAL GAINS RATE OF THIRTY SIX POINT FIVE PERCENT IN NEW YORK CITY CAPITAL GAINS ARE TAXED AT AN ASTONISHING THIRTY NINE POINT SEVEN FIVE PERCENT RATE THE HIGHEST IN THE NATION THOSE NUMBERS SUGGEST WHY PRIVATE CAPITAL IS BEING CROWDED OUT OF EXISTENCE BY THE EXPANSIVE PUBLIC SECTOR AND WHY MANY PEOPLE ARE LEAVING THE STATE THESE STATISTICS ALSO INDICATE WHY NEW YORK LAGS SIGNIFICANTLY BEHIND THE REST OF THE NATION IN JOB PRODUCTION FROM NINETEEN EIGHTY THREE TO NINETEEN NINETY THREE THE PRIVATE SECTOR JOB FORCE INCREASED BY FOUR PERCENT IN NEW YORK AND CLOSE TO TWENTY FIVE PERCENT NATIONWIDE IN THE NINETEEN EIGHTIES NEW YORK RANKED FORTY SEVEN OUT OF THE FIFTY STATES IN JOB PRODUCTION HAD NEW YORK BEEN AT THE MEAN IT MIGHT WELL HAVE PAID ITS BILLS DESPITE THE GOVERNOR'S INSATIABLE APPETITE FOR SPENDING OF COURSE THAT WAS MR. CUOMO BEFORE HIS RECENT TRANSFORMATION MR. CUOMO HAS NOTED ACCURATELY I MIGHT ADD THAT GOVERNMENT JOBS HAVE BEEN REDUCED SINCE NOVEMBER NINETEEN NINETY BUT HE NEGLECTS TO POINT OUT TO UNWARY AUDIENCES THAT HE HAS BEEN GOVERNOR SINCE NINETEEN EIGHTY THREE SINCE NINETEEN NINETY THE STATE WORK FORCE HAS BEEN REDUCED BY SEVENTEEN THOUSAND FOUR HUNDRED FOURTEEN JOBS MOSTLY THROUGH ATTRITION EVEN AFTER THIS REDUCTION IS CALCULATED THE STATE GOVERNMENT HAS HAD AN INCREASE OF FIFTEEN THOUSAND TWO HUNDRED FIFTY SIX JOBS OR A SEVEN POINT FOUR THREE PERCENT INCREASE SINCE NINETEEN EIGHTY THREE NEW YORK HAS SIX HUNDRED TWENTY ONE POINT NINE STATE AND LOCAL EMPLOYEES PER TEN THOUSAND IN THE POPULATION THE HIGHEST AMONG INDUSTRIAL STATES AND NINETEEN PERCENT ABOVE THE NATIONAL AVERAGE LAST IS THE CLAIM THAT NEW YORK HELD THE LINE ON TAXES EVEN IF ONE DOESN'T VIEW MANDATES AS AN ENFORCED LOCAL TAX INCREASE THERE IS STILL THE MATTER OF STATE TAXES AND FEES IN THE PAST FOUR YEARS COUNTING THE SUSPENSION OF THE LAST YEAR OF THE PROMISED TAX CUT TAXES HAVE GONE UP MORE THAN ONE BILLION DOLLARS EACH YEAR OF COURSE MR. CUOMO CLAIMS THAT FEES AREN'T TAXES IF HE ACCEPTS THAT PREMISE THEN HE CAN DISCUSS HOLDING THE LINE ON TAXES WITH A STRAIGHT FACE DESPITE TWO TAX CUTS DURING HIS TENURE AND A REDUCTION IN THE TAX RATE THERE STILL HAS BEEN AN INCREASE OF ONE DOLLAR AND THIRTY SEVEN CENTS IN TAXES FOR EVERY TAX DOLLAR CUT ON BALANCE IT'S UNDERSTANDABLE THAT MR. CUOMO HAS BEEN TRANSFORMED INTO A BORN AGAIN TAX CUTTER HE ORCHESTRATED THE FAILURE OF NEW YORK AND NOW IS GROPING FOR A REMEDY MR. LONDON A REPUBLICAN RAN FOR GOVERNOR OF NEW YORK IN NINETEEN NINETY AND IS A CANDIDATE FOR NINETEEN NINETY FOUR HE IS A PROFESSOR OF HUMANITIES AT NEW YORK UNIVERSITY GEOGRAPHIC ILLITERACY REARS ITS UGLY HEAD AGAIN OR MAYBE THE FOLKS IN ATLANTA ARE SIMPLY THINKING WISHFULLY WHATEVER THE CAUSE VALUJET AIRLINES RECEIVED SOME FARFETCHED ENTRIES IN A RECENT CONTEST WHICH PUT THE CHOICE OF A NEW DESTINATION TO A POPULAR VOTE THE START UP CARRIER WHOSE BASE OF OPERATIONS IS ATLANTA ASKED ATLANTANS TO CHOOSE A TWELFTH MARKET FOR IT TO SERVE ALL OF ITS OTHER ELEVEN MARKETS ARE IN THE SOUTHEAST THE ONLY CAVEAT THAT THE NEW DESTINATION BE WITHIN FOUR HUNDRED MILES OF ATLANTA BECAUSE VALUJET SPECIALIZES IN SHORT HAULS MORE THAN HALF THE SEVEN THOUSAND FIVE HUNDRED OR SO ENTRIES VALUJET RECEIVED WERE FOR CITIES WELL BEYOND THAT BOUNDARY LINE SCORES OF ENTRIES CAME IN FOR TOURIST DESTINATIONS SUCH AS SAN DIEGO ONE THOUSAND EIGHT HUNDRED EIGHTY SEVEN MILES AWAY AND FOR SAN FRANCISCO TWO THOUSAND ONE HUNDRED THIRTY FIVE MILES DISTANT AT SEVEN HUNDRED THIRTY TWO MILES NASSAU IN THE BAHAMAS WAS WELL BEYOND THE MILEAGE LIMIT IT'S ALSO OUTSIDE THE U. S. AND VALUJET IS STRICTLY A DOMESTIC CARRIER THAT MEANT VOTES FOR ARUBA BERMUDA AND JAMAICA WERE ALSO OFF THE MAP VALUJET OFFICIALS DON'T KNOW WHETHER THE VOTERS DIDN'T READ THE RULES CORRECTLY WEREN'T REALLY SURE HOW FAR AWAY SOME OF THOSE CITIES WERE OR SIMPLY IGNORED THE RESTRICTIONS AND VOTED THEIR HEART'S DESIRE THE LATTER IS QUITE LIKELY GIVEN THAT VALUJET'S FARES START AT THIRTY NINE DOLLARS ONE WAY SO IF A FARE THAT LOW IS A POSSIBILITY WHY NOT NOMINATE A ROUTE THAT MATTERS IF ONLY TO ONE VOTER LIKE BLAIRSVILLE GEORGIA WHICH IS WITHIN FOUR HUNDRED MILES UNFORTUNATELY IT HAS ONLY SIX HUNDRED RESIDENTS AND NO COMMERCIAL AIRPORT IN FACT SEVERAL ENTRIES WERE FOR CITIES THAT HAVE NO COMMERCIAL SERVICE PERHAPS BECAUSE THEY HAVE NO COMMERCIAL AIRPORTS CHILLICOTHE OHIO FALLS IN THAT CATEGORY AS DOES FITZGERALD GEORGIA WHICH HAS ONLY A SHORT TURF RUNWAY MORE SUITABLE TO TINY PROPJETS AND CROPDUSTERS THAN VALUJET'S D. C. NINES AFTER WEEDING OUT THE OUTLANDISH AND INELIGIBLE VALUJET PLANS TO ANNOUNCE THE CONTEST RESULTS THIS MORNING NAMING THE CITY IT WILL ADD TO ITS SCHEDULE STARTING MAY FIRST AIRLINE OFFICIALS SAID THE TOP THREE VOTE GETTERS WERE CINCINNATI CHARLOTTE N. C. AND SAVANNAH GEORGIA NOT IN THE RUNNING MACON THAT GEORGIA TOWN WAS ONE OF TWELVE THAT WERE TOO NEAR QUOTE FROM THE ATLANTA AIRPORT MACON'S ONLY FORTY FIVE MINUTES AWAY QUOTE SAID A VALUJET SPOKESWOMAN IT DOESN'T MAKE ANY SENSE TO FLY YOU'D SPEND ALL YOUR TIME IN TRAFFIC GETTING TO THE AIRPORT CHINA'S NINETEEN NINETY THREE CRIME RATE GREW SIX POINT TWO PERCENT THE SAME ANNUAL PACE SINCE NINETEEN EIGHTY TWO BUT THE GOVERNMENT CITED THE ECONOMIC BOOM FOR A TWENTY THREE PERCENT INCREASE IN THE NUMBER OF SERIOUS CRIMES REPORTED MURDERS INCREASED SEVEN POINT EIGHT PERCENT TO THIRTY TWO THOUSAND POLICE SAID THEY CRACKED NINETEEN THOUSAND DRUG TRAFFICKING CASES UP THIRTY TWO PERCENT FROM NINETEEN NINETY TWO THEFTS AND ROBBERIES INCREASED TWENTY PERCENT TO FOUR HUNDRED FIFTY THOUSAND AUTHORITIES SAID THEY DETAINED SEVEN HUNDRED EIGHTY THOUSAND GANG MEMBERS UP FIFTY SIX PERCENT MEANWHILE IN SHANGHAI NINETY THOUSAND BICYCLES WERE REPORTED STOLEN LAST YEAR CHINESE REFER TO THEIR COUNTRY AS THE QUOTE KINGDOM OF BICYCLES QUOTE SHANGHAI ALONE HAS SEVEN MILLION BIKES ONE FOR EVERY TWO PEOPLE SEPARATELY CHINA'S INDUSTRIAL OUTPUT IN DECEMBER SURGED A RECORD THIRTY FIVE PERCENT TO FORTY SIX POINT ONE SIX BILLION DOLLARS FROM THE YEAR EARLIER MONTH REFLECTING BEIJING'S RELAXATION OF CURBS ON LOANS TO STATE COMPANIES THAT HAD FORCED THEM TO LAY OFF WORKERS FOR LACK OF OPERATING FUNDS KAZAKHSTAN WAS ACCEPTED FOR MEMBERSHIP IN THE ASIAN DEVELOPMENT BANK WHICH SAID IT WOULD TREAT THE FORMER SOVIET REPUBLIC AS A TEST ECONOMY IN MOVING AWAY FROM STATE CONTROL THE BANK BASED IN MANILA SAID IT INTENDED TO HELP THE CENTRAL ASIAN COUNTRY MAKE A GRADUAL BUT SMOOTH TRANSITION TO A MARKET ORIENTED ECONOMY BY RESTRUCTURING STATE ENTERPRISES SUPPORTING THE PRIVATE SECTOR AND ATTRACTING FOREIGN INVESTMENT HUNGARY'S HEALTH AGENCY SIGNED A JOINT VENTURE AGREEMENT WITH A U. S. PHYSICIAN'S FLORIDA CONCERN TO SET UP THE COUNTRY'S FIRST PRIVATE FOR PROFIT HOSPITAL THE HUNGARIAN BORN DOCTOR STEPHAN J. WITTMANN AN ANESTHETIST SAID THE ONE HUNDRED FIFTY BED HOSPITAL TO BE OPENED BY NINETEEN NINETY SIX WILL COST BETWEEN FORTY MILLION DOLLARS AND SEVENTY FIVE MILLION DOLLARS THE GOVERNMENT DONATED THE LAND AT A FORMER SOVIET ARMY BASE IN SZENTENDRE A DOZEN MILES NORTH OF BUDAPEST THE HOSPITAL WITH MANAGEMENT NURSES AND EQUIPMENT TO BE IMPORTED FROM THE U. S. IS TO SERVE ABOUT TWO HUNDRED THOUSAND HUNGARIANS WHO CAN AFFORD PRIVATE HEALTH CARE IN A COUNTRY WHERE MOST MEDICAL TREATMENT IS PROVIDED BY THE STATE A BRITISH INVESTIGATION OF THE WORLD'S TWELFTH WORST TANKER SPILL BLAMED THE SHIP'S CAPTAIN FOR THE ACCIDENT IN THE SHETLAND ISLANDS THE BRAER SPILLED TWENTY FOUR POINT SIX MILLION GALLONS OF OIL AFTER RUNNING AGROUND IN A SEVERE STORM ON JANUARY FOURTH NINETEEN NINETY THREE THE REPORT SAID THE GREEK CAPTAIN ALEXANDROS GELIS WAS DERELICT FOR FAILING TO PREVENT LOOSE STEEL PIPES FROM CAUSING DAMAGE THAT ALLOWED SEA WATER TO CONTAMINATE THE FUEL SUPPLY OF THE LIBERIAN REGISTERED TANKER THE MAIN ENGINE AND GENERATOR FAILED AND THE CREW ABANDONED SHIP WHICH WAS DRIVEN ASHORE BY HURRICANE FORCE WINDS ITALY RATIFIED AN INTERNATIONAL CONVENTION ON MONEY LAUNDERING PARTICIPATING NATIONS ALLOW CONFISCATION OF PROFITS OR GOODS GAINED FROM CRIMINAL ACTIVITY LIFT BANKING SECRECY FOR INQUIRIES SHARE POLICE INFORMATION AND ADOPT COMMON INVESTIGATING TECHNIQUES THE ACCORD TO TAKE EFFECT MAY FIRST IN ITALY IS IN FORCE IN BRITAIN BULGARIA THE NETHERLANDS AND SWITZERLAND RATIFICATION IS PENDING BY FIFTEEN OTHER NATIONS THAT HAVE SIGNED THE ACCORD FINNISH OPPOSITION TO JOINING THE EUROPEAN UNION SHRANK SIGNIFICANTLY IN THE PAST MONTH AN OPINION SAMPLING BY THE HELSINGIN SANOMAT NEWSPAPER FOUND IN A GALLUP POLL FORTY ONE PERCENT OF THE RESPONDENTS FAVORED FINLAND'S MEMBERSHIP IN THE FORMER EUROPEAN COMMUNITY AND TWENTY SEVEN PERCENT OPPOSED IT IN DECEMBER A SIMILAR POLL FOUND FORTY PERCENT FOR AND FORTY THREE PERCENT AGAINST THE E. U. APPLICATION THOSE WHO WERE UNDECIDED INCREASED TO THIRTY TWO PERCENT FROM SEVENTEEN PERCENT FINNS WILL VOTE ON E. U. MEMBERSHIP LATER THIS YEAR THE GOVERNMENT APPLIED TO JOIN IN NINETEEN NINETY TWO AND HOPES TO BE ACCEPTED BY NINETEEN NINETY FIVE THE FRENCH FASHION HOUSE CHANEL APOLOGIZED TO THE MUSLIM WORLD SAYING IT UNWITTINGLY PUT VERSES OF THE KORAN ON DRESSES SHOWN IN ITS SUMMER COLLECTIONS IN THE PARIS SHOW LAST WEEKEND ARABIC WORDS WERE EMBROIDERED IN PEARLS ON A TORSO HUGGING BUSTIER AND OTHER DRESSES CHANEL DESIGNER KARL LAGERFELD WHOSE CLIENTELE INCLUDES ARABS SAID HE TOOK THE DESIGN FROM A BOOK ON INDIA'S TAJ MAHAL PALACE A GERMAN MR. LAGERFELD SAID HE FOUND THE DESIGN AESTHETICALLY PLEASING AND WASN'T AWARE OF ITS MEANING AFTER A MUSLIM GROUP IN JAKARTA PROTESTED CHANEL SAID IT DESTROYED THE DRESSES WITH THE OFFENDING DESIGNS ALONG WITH NEGATIVES OF THE PHOTOS MADE OF THE GARMENTS IT ALSO APPEALED TO PRESS PHOTOGRAPHERS AND TELEVISION CREWS TO DO LIKEWISE CHANEL DENIED THAT IT FEARED REPRISALS FROM MUSLIMS FOR DESECRATING THE KORAN THE SACRED BOOK OF ISLAM IN NINETEEN EIGHTY NINE IRAN'S REVOLUTIONARY ISLAMIC LEADER THE LATE AYATOLLAH RUHOLLAH KHOMEINI ORDERED THE DEATH OF THE BRITISH WRITER SALMAN RUSHDIE FOR HIS NOVEL THE SATANIC VERSES CONSIDERED BLASPHEMOUS BY MANY MUSLIMS RUSSIAN COAL OUTPUT LAST YEAR DECREASED NINE POINT EIGHT PERCENT TO THREE HUNDRED FIVE MILLION METRIC TONS FROM A YEAR EARLIER AND EXPORTS TO COUNTRIES OUTSIDE THE FORMER SOVIET UNION DROPPED FIVE POINT THREE PERCENT TO EIGHTEEN MILLION TONS TO SHED ITS WARRING PAST AND BUILD ITS TOURISM APPEAL CAMBODIA NEXT MONTH WILL STAGE EVENTS SUCH AS A PEDICAB RACE AND PERFORMANCES OF TRADITIONAL DANCES AND SONGS OTHER PLANNED ATTRACTIONS INCLUDE MEKONG RIVER BOAT RACES AND A MARATHON NEAR THE ANCIENT TEMPLES OF ANGKOR WAT BLOCKBUSTER ENTERTAINMENT CORPORATION'S AGREEMENT TO MERGE WITH VIACOM INCORPORATED IS A CLEVER EXIT STRATEGY FOR ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER H. WAYNE HUIZENGA FROM WHAT MAY BE A DYING BUSINESS MANY ENTERTAINMENT EXECUTIVES SAY IT IS A QUOTE BEAUTIFUL BAILOUT QUOTE SAID ONE EXECUTIVE WHO KNOWS THE COMPANY AND MR. HUIZENGA WELL SAYS ANOTHER PERSON WITH CLOSE TIES TO THE BLOCKBUSTER EXECUTIVE MAYBE HE KNOWS HE'S HIT A PLATEAU BLOCKBUSTER HAS TREMENDOUS MOMENTUM LARGELY THROUGH ITS THREE THOUSAND FIVE HUNDRED NINETY THREE STORE VIDEO CHAIN IT GENERATES CASH FLOW OF NEARLY FIVE HUNDRED MILLION DOLLARS A YEAR ITS BALANCE SHEET IS NEARLY DEBT FREE ITS EARNINGS GROWTH IS STUNNING IT HAS POSTED QUARTERLY INCREASES RANGING FROM FORTY PERCENT TO SIXTY FOUR PERCENT IN THE LAST TWO YEARS AND ITS MANAGEMENT HAS REMAINED STEADFASTLY UPBEAT ABOUT THE COMPANY'S FUTURE MR. HUIZENGA DENIES THAT THE MERGER WITH VIACOM IS RELATED TO CONCERNS ABOUT HOW TO KEEP THE GROWTH GOING DISMISSING THE IDEA WITH AN EXPLETIVE THIS GIVES OUR SHAREHOLDERS A MUCH BETTER STOCK TO HOLD HE SAYS OF THE DEAL WHICH WOULD COMBINE BLOCKBUSTER'S VIDEO AND MUSIC CHAINS AND STAKES IN TWO SMALL MOVIE STUDIOS WITH VIACOM'S M. T. V. V. H. ONE NICKELODEON AND SHOWTIME CABLE NETWORKS BUT A LOT OF COMMUNICATIONS EXPERTS DON'T SEE HOW BLOCKBUSTER CAN PRESERVE ITS EARNINGS RECORD IN THE FACE OF THE IMMINENT THREAT FROM PAY PER VIEW TELEVISION UNTIL RECENTLY MANY MEDIA EXECUTIVES BELIEVED THAT IN HOME VIDEO SERVICE WAS AT LEAST A DECADE AWAY WITH TECHNOLOGICAL ADVANCES AND INDUSTRY CONSOLIDATION THE PROSPECT IS A LOT CLOSER TIME WARNER INCORPORATED IS PLANNING A SPRING ROLLOUT OF A PROTOTYPE CABLE SYSTEM IN ORLANDO FLORIDA THAT WILL FEATURE VIDEO ON DEMAND AND THE PHONE COMPANIES LIKE BELL ATLANTIC CORPORATION ARE RACING TO IMPLEMENT TECHNOLOGY TO DELIVER MOVIES ON DEMAND OVER PHONE LINES DESPITE DIVERSIFICATION ATTEMPTS THE MAJORITY OF BLOCKBUSTER'S REVENUE COMES FROM VIDEO RENTAL MR. HUIZENGA INSISTS THAT'S NOTHING TO WORRY ABOUT BLOCKBUSTER'S SHARE OF THE U. S. VIDEO RENTAL MARKET IS ONLY FIFTEEN PERCENT HE SAYS AND WILL BE BOLSTERED BY GOBBLING UP MOM AND POP OUTLETS EVEN AFTER INTERACTIVE PAY PER VIEW COMES ON LINE WE WILL STILL BE IN A BETTER POSITION IN VIDEO RENTAL REVENUE IN THE YEAR TWO THOUSAND THAN WE ARE TODAY HE SAYS BUT IT WILL BE A SHRINKING MARKET AS EARLY AS NINETEEN NINETY SIX THE VIDEO RENTAL BUSINESS WILL BE ERODING AT A RATE OF ABOUT TEN PERCENT A YEAR ACCORDING TO ROGER SIBONI MANAGING PARTNER OF K. P. M. G. PEAT MARWICK'S COMMUNICATIONS PRACTICE INDEED BLOCKBUSTER HAS BEEN AGGRESSIVELY PURSUING DIVERSIFICATION STRATEGIES FOR THREE YEARS IN LATE NINETEEN NINETY TWO IT BEGAN BUYING MUSIC RETAILERS IT HAS SINCE ACQUIRED SOUND WAREHOUSE MUSIC PLUS TURTLE'S AND RECORD BAR A YEAR AGO BLOCKBUSTER AGREED TO BUY A MINORITY INTEREST IN REPUBLIC PICTURES KNOWN FOR HAVING PRODUCED JOHN WAYNE MOVIES AND OTHER CLASSIC WESTERNS IN MARCH IT BOUGHT A CONTROLLING STAKE IN SPELLING ENTERTAINMENT GROUP INCORPORATED WHICH PRODUCES THE HIT T. V. SHOW BEVERLY HILLS NINETY THOUSAND TWO HUNDRED TEN AND OWNS THE RIGHTS TO SUCH SHOWS AS DYNASTY AND THE LOVE BOAT IN THE LAST YEAR MR. HUIZENGA HAS TALKED ABOUT BUILDING A VERTICALLY INTEGRATED FAMILY ENTERTAINMENT COMPANY WITH THEME PARKS AND MEGASTORES MARKETING C. D.S VIDEOS AND INTERACTIVE GAMES AND BEGINNING IN APRIL HE HAD SECRETLY BEGUN TALKING TO VIACOM ABOUT JOINT VENTURES AND ABOUT MERGING THE COMPANIES BEGINNING LAST FALL FOR BLOCKBUSTER GOING IT ALONE WOULD BE COSTLY AND TIME CONSUMING EVEN IN THE SHORTER TERM THE NEW RECORD AND MOVIE PRODUCTION BUSINESSES COULDN'T MATCH THE GROSS PROFIT MARGINS OF VIDEO RENTALS WHICH CAN BE AS HIGH AS SEVENTY PERCENT COMPARED WITH ABOUT TEN PERCENT FOR RECORD STORES ACCORDING TO ANALYSTS SOME INDUSTRY EXECUTIVES BELIEVED THAT BLOCKBUSTER'S MOVE INTO NONRENTAL AREAS WOULD EVENTUALLY HURT BOTH THE COMPANY'S EARNINGS AND ITS CACHET AS A HIGH GROWTH STOCK WHICH IS WHY SOME BLOCKBUSTER SHAREHOLDERS WHO WERE INITIALLY PUT OFF BY THE VIACOM DEAL APPEARED TO BE WARMING TO IT BY LATE YESTERDAY THIS IS AN INSURANCE POLICY AGAINST BLOCKBUSTER GOING EXTINCT SAYS LARRY HAVERTY A MONEY MANAGER FOR STATE STREET RESEARCH IN BOSTON ONE OF BLOCKBUSTER'S LARGEST SHAREHOLDERS AND BLOCKBUSTER HAS BEEN SUCH A GROWTH STOCK CLEVERLY USING ITS HIGH STOCK PRICE TO FURTHER EXPANSION THROUGH ACQUISITIONS PARTIALLY PAID FOR WITH STOCK THAT ALMOST ANY SLOWDOWN IN ITS MAIN BUSINESS COULD CAUSE BIG PROBLEMS FOR ITS SHARES ITS STOCK PRICE SOARED LAST YEAR FROM ABOUT EIGHTEEN DOLLARS A SHARE IN JANUARY TO ABOUT THIRTY DOLLARS BY YEAR'S END AS THE COMPANY REPORTED EARNINGS GAINS OF MORE THAN FIFTY PERCENT IN EACH OF THE FIRST THREE QUARTERS EARNINGS MOMENTUM QUOTE IS HOW THAT COMPANY HAS BEEN SOLD TO THE STREET QUOTE SAYS PAUL MARSH A SECURITIES ANALYST WITH NATWEST SECURITIES CORPORATION MR. HUIZENGA IS A MASTER AT KEEPING HIS STOCK PRICE PROPPED UP SAYS AN ENTERTAINMENT INDUSTRY EXECUTIVE THAT THE STOCK DIDN'T TAKE A LONG TERM HIT ON THE BASIS OF TECHNOLOGICAL OBSOLESENCE IS A WONDER IN ITSELF STILL MANY BLOCKBUSTER SHAREHOLDERS SHARED MR. HUIZENGA'S OPTIMISM ABOUT BLOCKBUSTER'S PROSPECTS AS A STAND ALONE COMPANY SO MUCH SO THAT INITIALLY MANY WERE ANGRY ABOUT THE MERGER I'M SHOCKED JUST TOTALLY SHOCKED SAID ONE LARGE SHAREHOLDER WHO BELIEVED BLOCKBUSTER'S STOCK WOULD REACH FIFTY DOLLARS A SHARE ON ITS OWN THE MERGER PROPOSAL VALUES BLOCKBUSTER STOCK AT ABOUT THIRTY ONE DOLLARS A SHARE A MODEST TEN PERCENT PREMIUM TO ITS FRIDAY CLOSE OF TWENTY EIGHT POINT THREE SEVEN FIVE DOLLARS SOME SHAREHOLDERS BELIEVED THE DEAL MAY ATTRACT RIVAL BIDDERS FOR BLOCKBUSTER THE PLAN HAS BEEN APPROVED BY BOTH COMPANIES' BOARDS AND IS SUBJECT TO SHAREHOLDER APPROVAL MR. HUIZENGA DEFENDS THE MERGER'S TERMS BY ARGUING THAT BLOCKBUSTER'S SHARES HAVE BEEN TRADING NEAR AN ALL TIME HIGH WHILE VIACOM'S STOCK IS DEPRESSED BECAUSE OF ITS BID FOR PARAMOUNT COMMUNICATIONS INCORPORATED IF VIACOM'S CLASS A AND B. SHARES RETURN TO THEIR PRE PARAMOUNT LEVELS BLOCKBUSTER'S STOCK VALUE COULD BE MORE THAN FORTY DOLLARS MR. HUIZENGA SAYS THAT IS A BIG BIG PREMIUM HE ADDS HE SAYS THAT DURING THE LATEST ROUND OF DISCUSSIONS THE TWO COMPANIES EXAMINED FIFTEEN TO TWENTY SCENARIOS INCLUDING MAKING VIACOM A LOAN BUYING STOCK CONVERTIBLES BUYING SELECTED VIACOM ASSETS AND MAKING A JOINT BID FOR PARAMOUNT QUOTE EVERYTHING LED BACK TO THE STRENGTHS OF THE COMPANIES TOGETHER QUOTE MR. HUIZENGA SAYS EVEN IF IT DOESN'T GET PARAMOUNT MR. HUIZENGA SEES VIACOM BLOCKBUSTER ONE DAY PRODUCING FEATURE FILMS THAT WILL BE DISTRIBUTED FIRST THROUGH MOVIE THEATERS OWNED BY VIACOM CHAIRMAN SUMNER REDSTONE THEN THROUGH BLOCKBUSTER'S VIDEO STORES AND THEN ON VIACOM'S SHOWTIME CABLE NETWORK ONE OF BLOCKBUSTER'S BIGGEST ASSETS IS A DATABASE FILLED WITH MORE THAN THIRTY MILLION CUSTOMER NAMES AND INFORMATION ABOUT THEIR PREFERENCES IN ACTORS DIRECTORS AND MOVIE GENRES THAT WOULD BE HELPFUL IN MARKETING FILMS BLOCKBUSTER ALSO COULD PROMOTE ITS MUSIC CHAIN ON VIACOM'S M. T. V. AND V. H. ONE NETWORKS IN ADDITION MR. HUIZENGA SAYS VIACOM BLOCKBUSTER CAN SHED REDUNDANT OPERATIONS AND SAVE ABOUT TWO HUNDRED MILLION DOLLARS A YEAR IN ADDITION TO HIS NEW POSITION AS VICE CHAIRMAN OF VIACOM BLOCKBUSTER MR. HUIZENGA SAYS HE WILL REMAIN C. E. O. AT THE BLOCKBUSTER SUBSIDARY HE HAS NO EMPLOYMENT CONTRACT HOWEVER HE SAYS HE EXPECTS TO HAVE A MUCH BIGGER MANAGEMENT ROLE IF THE COMPANY WINS PARAMOUNT WHEN CHARLES OSTERHOLM AND HIS STEPFATHER BID EIGHTY NINE DOLLARS AND NINETY CENTS FOR THE CONTENTS OF A LOCKER AT A SEATTLE AREA SELF STORAGE WAREHOUSE THEY HOPED TO STRIKE GOLD THEY KNEW FROM OPERATING A THRIFT SHOP THAT LOCKERS UNDER LEASE FOR A LONG TIME LIKE THIS ONE COULD HARBOR SOMETHING OF REAL VALUE WHAT THEY BOUGHT HOWEVER WERE THE RATHER DRAB BELONGINGS OF A FEDERAL WAY WASHINGTON HOUSEHOLD ENOUGH FURNITURE CLOTHING AND OTHER POSSESSIONS TO FILL A SMALL TRUCK TWICE THE MEN WERE PERPLEXED QUOTE WE DIDN'T UNDERSTAND WHY SOMEONE HAD SPENT THAT MUCH MONEY FOR THAT MANY YEARS STORING THAT MUCH GARBAGE QUOTE MR. OSTERHOLM SAYS THE REASON SOON BECAME CLEAR BURIED UNDER PILES OF CLOTHING THEY FOUND THE WIFE AND TWO SONS OF CAR SALESMAN MARK J. BENDER ALL KILLED WITH A HATCHET THE YOUNGEST BOY HAD BEEN WRAPPED IN HIS BEDDING HIS HEAD STILL NESTLED AGAINST HIS SNOOPY PILLOW SUDDENLY MR. OSTERHOLM SAYS EVERYTHING MADE SENSE IT WAS THE KIND OF SITUATION THAT LATELY HAS BECOME AN ACUTE EMBARRASSMENT TO THE SELF STORAGE INDUSTRY CRIMINALS HAVE DISCOVERED THAT SELF STORAGE UNITS THOSE GARAGE LIKE STRUCTURES OUTSIDE NEARLY EVERY CITY IN AMERICA CAN BE TERRIFIC PLACES TO STORE BOMBS DRUGS AND BODIES AND TO DUMP TOXIC CHEMICALS TOO DIFFICULT TO DISPOSE OF LEGALLY THE ANNALS OF STORAGE ABUSE INCLUDE SUCH WELL PUBLICIZED CRIMES AS THE WORLD TRADE CENTER BOMBING INVESTIGATORS FOUND SUSPICIOUS CHEMICALS POSSIBLY BOMB INGREDIENTS IN A LOCKER ALLEGEDLY RENTED BY A SUSPECT AND THE NINETEEN NINETY TWO KIDNAPPING AND MURDER OF EXXON CORPORATION EXECUTIVE SIDNEY RESO WHO DIED IN A STORAGE UNIT WHERE HE HAD BEEN HELD CAPTIVE NO ONE KNOWS WHAT ELSE OR WHO ELSE MAY BE STORED IN AMERICA'S NINE HUNDRED EIGHTEEN MILLION SQUARE FEET OF SELF STORAGE SPACE IF YOU WERE SUPERMAN AND YOU TRIED OUT YOUR X. RAY VISION ON THESE THINGS YOU'D CERTAINLY BE SHOCKED SAYS JAMES NEILSON A BOMB TECHNICIAN WITH THE AUSTIN TEXAS POLICE HIS SQUAD GETS SUMMONED TO STORAGE UNITS FOUR OR FIVE TIMES A YEAR HE SAYS LAST JULY IT REMOVED SEVEN BOMBS AND INCENDIARY BOOBY TRAPS FROM ONE STORAGE UNIT COMPANIES PROTEST THAT THE VAST MAJORITY OF SELF STORAGE CUSTOMERS ARE LAW ABIDING CITIZENS WE RENT PROBABLY THREE HUNDRED THOUSAND UNITS A YEAR SAYS MICHAEL ROWE PRESIDENT OF SHURGARD STORAGE CENTERS WHICH OWNS THE COMPLEX WHERE THE BENDER FAMILY WAS FOUND THE PROBLEMS WE'VE HAD YOU COULD PROBABLY DESCRIBE ON ONE HAND OR LESS THAN TWO THE APPEAL OF SELF STORAGE TO CROOKS HOWEVER SHOULD COME AS NO SURPRISE UNLIKE OPERATORS OF TRADITIONAL WAREHOUSES WHO ACCEPT LEGAL RESPONSIBILITY FOR THE THINGS THEY HOUSE SELF STORAGE COMPANIES LONG AGO JOINED TOGETHER TO CRAFT MODEL LEGISLATION ADOPTED BY MOST STATES THAT ELIMINATES ANY LEGAL LIABILITY FOR A CUSTOMER'S POSSESSIONS EVEN MEMBERS OF THE INDUSTRY CONCEDE THAT SOME OF ITS COMMON PRACTICES MAY INVITE CRIMINAL MISUSE SELF STORAGE BECAME A HOT BUSINESS IN THE NINETEEN SEVENTIES AS INVESTORS DISCOVERED THAT THESE VAST COMPLEXES MANY WITH THREE HUNDRED OR MORE STORAGE SPACES COULD BE BUILT ON CHEAP LAND AND RUN AT PRETAX PROFIT MARGINS APPROACHING SEVENTY PERCENT SECURITY IS MINIMAL ACCORDING TO AN INDUSTRY SURVEY ONLY TWENTY TWO PERCENT OF THE NATION'S SELF STORAGE FACILITIES HAVE ANY KIND OF CAMERA OR VIDEO SURVEILLANCE TO KEEP COSTS DOWN CRITICS SAY COMPANIES PAY THEIR MANAGERS POORLY GIVING THEM LITTLE INCENTIVE TO MONITOR INCOMING MATERIALS SAYS BOB WINET A SANTA MONICA CALIFORNIA STORAGE UNIT OPERATOR CRITICAL OF HOW COMPANIES PAY THEIR ON SITE MANAGERS QUOTE OUR INDUSTRY HAS GOTTEN AWAY WITH MURDER QUOTE AS THE INDUSTRY GREW SOME MARKETS BECAME SATURATED AS IN THE SOUTH AND WEST INSIDERS FEAR THAT AGGRESSIVE MARKETING TACTICS IN PARTICULAR THE DOLLAR A MONTH PROMOTIONS OF PUBLIC STORAGE INCORPORATED OF GLENDALE CALIFORNIA THE LARGEST SELF STORAGE COMPANY MAKE RENTAL RATES IRRESISTIBLE TO CRIMINALS WHEN YOU CHEAPEN WHAT YOU HAVE TO A POINT WHERE IT BECOMES JUST TOTALLY ACCESSIBLE YOU'RE INVITING PROBLEMS SAYS RONALD BOORSTEIN A PAST PRESIDENT OF THE SELF STORAGE ASSOCIATION HARVEY LENKIN CHAIRMAN OF PUBLIC STORAGE MANAGEMENT INCORPORATED WHICH MANAGES ALL THE COMPANY'S FACILITIES DISAGREES IF PEOPLE WANT TO DUMP STUFF HE SAYS THEY'RE GOING TO DUMP STUFF WHETHER YOU CHARGE ONE DOLLAR A MONTH OR FIFTY DOLLARS A MONTH HE SAYS CRIMINAL MISUSE OF PUBLIC STORAGE UNITS IS INFINITESIMAL STILL POLICE HAVE FOUND EXPLOSIVES STOLEN GOODS AND THE BODY OF A MURDER VICTIM IN PUBLIC STORAGE FACILITIES LAST JULY CUSTOMERS OF A PUBLIC STORAGE COMPLEX IN HOLLYWOOD COMPLAINED OF AN UNPLEASANT ODOR SEEPING FROM AN ADJACENT LOCKER INSIDE POLICE FOUND A CEMENT FILLED FREEZER THAT CONTAINED THE BODY OF CHARLES DEDAVIES A TWENTY NINE YEAR OLD MAN STRANGLED A WEEK EARLIER IN SCOTTSDALE ARIZONA THE KILLERS HAD NEEDED FIFTEEN MEN MOST OF THEM DAY LABORERS FROM THE SURROUNDING NEIGHBORHOOD TO MOVE THE HEAVY FREEZER FROM THEIR TRUCK INTO THE LOCKER ACCORDING TO ONE SUSPECT IN SOME CASES SELF STORAGE UNITS HAVE SERVED FOR YEARS AS THE BASE OF OPERATIONS FOR THRIVING CRIMINAL ENTERPRISES THE FEDERAL BUREAU OF INVESTIGATION IN NINETEEN NINETY TWO EXPOSED AN EXTENSIVE FRAUD RUN LARGELY FROM STORAGE UNITS IN LONG ISLAND N. Y. MEDICAID RECIPIENTS ACQUIRED EXPENSIVE PRESCRIPTION DRUGS AT NO CHARGE THEN RESOLD THEM INTO A BLACK MARKET NETWORK OF BUYERS AND DISTRIBUTORS THESE DISTRIBUTORS IN TURN SOLD THE DRUGS AT DEEP DISCOUNT TO CROOKED PHARMACISTS WHO RESOLD THEM TO CONSUMERS AT FULL PRICE POCKETING THE DIFFERENCE THIS WAS BIG BUSINESS ONE SUSPECT WAS ARRESTED WITH FIVE HUNDRED THOUSAND DOLLARS AND DRUGS VALUED AT ONE MILLION DOLLARS THE NEWEST BRAND OF CRIMINAL MISUSE TOXIC DUMPING MAY AT LAST HAVE BEGUN TO ERODE THE INDUSTRY'S LAISSEZ FAIRE ATTITUDE OPERATORS HAVE FOUND THAT EVEN THE INDUSTRY'S OWN LAWS CAN'T DEFLECT LIABILITY FROM SUCH CRIMES UNDER FEDERAL SUPERFUND LEGISLATION THE OWNER OF A PROPERTY ON WHICH POLLUTANTS ARE DUMPED IS JUST AS LIABLE FOR THE COSTS OF ANY CLEANUP AS THE DUMPER HIMSELF SUCH COSTS CAN BE HIGH IN ONE RECENT CASE A SHURGARD COMPLEX OUTSIDE SAN FRANCISCO PAID TWO HUNDRED THOUSAND DOLLARS THE EQUIVALENT OF MORE THAN FIVE THOUSAND MONTHS OF RENT ON A STANDARD FIVE BY TEN CHAMBER TO CLEAN UP A CACHE OF ONE THOUSAND CHEMICALS LEFT BY A TENANT THE FEAR OF SUCH OUTLAYS HAS DRIVEN COMPANIES TO STEP UP SECURITY MANAGEMENT COMPANY OF LITTLE FERRY N. J. HAD TO PAY THIRTY NINE THOUSAND DOLLARS TO CLEAN UP CHEMICALS LEFT BY TWO DIFFERENT TENANTS SAYS KENNETH COOLEY PRESIDENT NOW IN A DEPARTURE FROM INDUSTRY PRACTICE ACCESS RESERVES THE RIGHT TO INSPECT UNITS AND INSISTS RENTERS PROVIDE A COPY OF THE KEYS TO THEIR PADLOCKS SELF STORAGE RENTERS TYPICALLY SUPPLY THEIR OWN LOCKS THE COMPANY ALSO INSTALLED DUAL EXPOSURE CAMERAS THAT SIMULTANEOUSLY PHOTOGRAPH THE RENTER AND A PORTION OF THE LEASE OFTEN HOWEVER THERE IS LITTLE A COMPANY CAN DO TO KEEP CRIMINALS FROM MISUSING ITS STORAGE CHAMBERS SHURGARD FOR EXAMPLE INHERITED THE BENDER LOCKER WHEN IT ACQUIRED ANOTHER COMPANY'S COMPLEX THE BODIES CAME TO LIGHT IN NINETEEN NINETY TWO WHEN MR. BENDER'S SECOND WIFE ANGRY AT WRITING A MONTHLY CHECK TO STORE WHAT SHE BELIEVED WERE HIS EX WIFE'S BELONGINGS STOPPED PAYMENT WITHOUT TELLING HIM WHEN SEATTLE DETECTIVES CAUGHT UP WITH HIM MR. BENDER BY THEN A USED CAR SALESMAN AT HAPPY DAYS FORD IN NAMPA IDAHO WAS STUNNED AND SOON CONFESSED TO THE MURDERS I THOUGHT THE STORAGE UNIT WAS PAID FOR HE SAID THE FAMILY HAD BEEN THERE FOR TWELVE YEARS MYERS INDUSTRIES INCORPORATED AKRON OHIO SAID IT ACQUIRED CERTAIN ASSETS AND OPERATIONS OF NORTHWEST TIRE SHOP SUPPLY COMPANY OF PORTLAND OREGON MYERS INDUSTRIES MAKES REUSABLE PLASTIC STORAGE SYSTEMS AND DISTRIBUTES EQUIPMENT AND SUPPLIES FOR THE TIRE SERVICING AND REPAIR INDUSTRIES TERMS WEREN'T DISCLOSED COLTEC INDUSTRIES INCORPORATED PINE BLUFF ARKANSAS COMPLETED THE SALE OF ITS CENTRAL MOLONEY TRANSFORMER DIVISION TO THE DIVISION'S SENIOR MANAGERS THE SALE FOLLOWS COLTEC'S STRATEGY TO FOCUS ON DIVISIONS SERVING AEROSPACE AUTOMOTIVE AND OTHER INDUSTRIAL MARKETS TERMS WEREN'T DISCLOSED HORIZON HEALTHCARE CORPORATION ALBUQUERQUE N. M. ACQUIRED THE ASSETS OF MEDICAL DIAGNOSTIC SERVICE INCORPORATED A CARDIOPULMONARY AND RADIOLOGY ULTRASOUND CONCERN SERVING NEVADA NORTHERN ARIZONA AND EASTERN CALIFORNIA TERMS WEREN'T DISCLOSED MATRIX SERVICE COMPANY TULSA OKLAHOMA SIGNED AN AGREEMENT IN PRINCIPLE TO ACQUIRE BROWN STEEL CONTRACTORS INCORPORATED NEWMAN GEORGIA THE ACQUISITION IS EXPECTED TO BE COMPLETED BY MID APRIL BANKWORCESTER CORPORATION WORCESTER MASSACHUSETTS SAID ITS SHAREHOLDERS APPROVED THE PREVIOUSLY ANNOUNCED ACQUISITION OF THE INSTITUTION BY BANK OF BOSTON CORPORATION PENDING REGULATORY APPROVAL BANK OF BOSTON AGREED IN SEPTEMBER TO ACQUIRE BANKWORCESTER FOR THIRTY FOUR DOLLARS A SHARE OR ABOUT TWO HUNDRED FORTY SEVEN MILLION DOLLARS ALCO STANDARD CORPORATION'S UNISOURCE UNIT OF VALLEY FORGE PENNSYLVANIA ACQUIRED HOPACO THE HAWAIIAN PAPER DISTRIBUTION ARM OF PAPER PRODUCT COMPANY BOISE CASCADE CORPORATION TERMS WEREN'T DISCLOSED ALCO STANDARD CORPORATION'S UNISOURCE UNIT ACQUIRED ONLY THE HAWAIIAN PRINTING PAPER DISTRIBUTION BUSINESS OF BOISE CASCADE CORPORATION'S HOPACO BUSINESS AN ITEM IN LAST MONDAY'S BUSINESS BRIEFS SECTION INCORRECTLY SAID UNISOURCE ACQUIRED THE ENTIRE HOPACO BUSINESS PROCTER AND GAMBLE COMPANY AND CYGNUS THERAPEUTIC SYSTEMS FORMED AN AGREEMENT TO DEVELOP SMOKING CESSATION PRODUCTS INCLUDING NICOTINE PATCHES THE MOVE IS P. AND G'S FIRST FORAY INTO THE THREE HUNDRED FIFTY MILLION DOLLAR INDUSTRY P. AND G. WILL MAKE AN INVESTMENT IN CYGNUS AND HAVE EXCLUSIVE WORLD WIDE MARKETING RIGHTS TO PRODUCTS MANUFACTURED BY CYGNUS SPECIFIC TERMS WEREN'T DISCLOSED THIS IS ONE OF SEVERAL ALLIANCES THAT P. AND G. WITH ABOUT THIRTY BILLION DOLLARS IN ANNUAL SALES HAS FORMED WITH SMALL PHARMACEUTICAL AND BIOTECHNOLOGY COMPANIES P. AND G. DOESN'T CURRENTLY OFFER SMOKING CESSATION PRODUCTS WHICH ARE TYPICALLY OBTAINED BY PRESCRIPTION ONLY HOWEVER DON TASSONE A SPOKESMAN FOR P. AND G. SAID THE MOVE INTO A NEW INDUSTRY IS CONSISTENT WITH P. AND G'S GOAL OF QUOTE BRINGING SUPERIOR TECHNOLOGIES TO MARKET QUOTE CYGNUS REDWOOD CITY CALIFORNIA MAKES ADVANCED DRUG DELIVERY SYSTEMS AND ITS PRODUCTS INCLUDE NICOTROL A NICOTINE TRANSDERMAL PATCH FOR SMOKING CESSATION AS IS THE CASE WITH P. AND G. CYGNUS TYPICALLY DEVELOPS AND MANUFACTURES PRODUCTS AND LICENSES THE MARKETING TO PARTNERS CRAIG CARLSON A CYGNUS SPOKESMAN SAID JOHNSON AND JOHNSON OWNS NORTH AMERICAN MARKETING RIGHTS TO NICOTROL MR. CARLSON SAID THE ALLIANCE WITH P. AND G. IS FOR THE DEVELOPMENT OF NICOTINE TRANSDERMAL PATCHES WHICH ARE NOT THE SAME AS NICOTROL HE ADDED THAT THE AGREEMENT IS FOR A MINIMUM OF TWO PRODUCTS P. AND G. AND CYGNUS DECLINED TO DISCUSS WHEN THE NEW PRODUCTS WILL BE AVAILABLE ALTHOUGH SMOKING CESSATION PRODUCTS GENERATE THREE HUNDRED FIFTY MILLION DOLLARS IN ANNUAL SALES MR. CARLSON SAID MANY IN THE INDUSTRY BELIEVE THE FOOD AND DRUG ADMINISTRATION MAY SOME DAY APPROVE THE SALE OF SMOKING CESSATION PRODUCTS FOR OVER THE COUNTER SALE SO THE POTENTIAL MARKET IS LARGER THE ANNOUNCMENT CAME AFTER THE CLOSE OF TRADING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING P. AND G. CLOSED AT FIFTY NINE DOLLARS UP TWENTY FIVE CENTS CYGNUS CLOSED AT TEN DOLLARS AND FIFTY CENTS DOWN THIRTY SEVEN POINT FIVE CENTS IN NASDAQ STOCK MARKET TRADING I. T. T. CORPORATION REPORTED HEALTHY FOURTH QUARTER EARNINGS AGAINST A YEAR EARLIER LOSS AND SAID IT HAS PUMPED EIGHT HUNDRED MILLION DOLLARS INTO ITS I. T. T. SHERATON HOTEL UNIT WHICH IS PURSUING CASINO PROPERTIES THAT COULD INVOLVE AS MUCH AS ONE BILLION DOLLARS IN INVESTMENTS FOR THE QUARTER THE COMPANY REPORTED NET INCOME OF TWO HUNDRED NINETEEN MILLION DOLLARS OR ONE DOLLAR AND SEVENTY SEVEN CENTS A SHARE COMPARED WITH A LOSS OF SIX HUNDRED SEVENTEEN MILLION DOLLARS OR FIVE DOLLARS AND THIRTY THREE CENTS A SHARE A YEAR EARLIER AS OPERATING PROFIT ROSE THROUGHOUT MOST BUSINESS SEGMENTS SALES DECLINED TWO PERCENT TO FIVE POINT NINE EIGHT BILLION DOLLARS FROM SIX POINT ONE OH BILLION DOLLARS IN NINETEEN NINETY TWO I. T. T. SAID THE LOS ANGELES EARTHQUAKE CREATED MORE PROBLEMS THAN ORIGINALLY EXPECTED FOR ITS I. T. T. HARTFORD PROPERTY AND CASUALTY OPERATIONS CHAIRMAN RAND V. ARASKOG SAID THE COMPANY EXPECTS ABOUT TWENTY EIGHT MILLION DOLLARS IN PRETAX LOSSES IN THE FIRST QUARTER FROM THE QUAKE AND AN ADDITIONAL EIGHTEEN MILLION DOLLARS IN PRETAX LOSSES FROM THE RECENTLY BRUTAL WINTER WEATHER QUOTE AT FIRST WE THOUGHT IT WAS NOT SO BAD QUOTE MR. ARASKOG SAID THE NINETEEN NINETY THREE FOURTH QUARTER INCLUDED TAX RELATED CHARGES OF TWENTY SIX MILLION DOLLARS OR TWENTY ONE CENTS A SHARE A CHARGE OF NINETEEN MILLION DOLLARS OR SIXTEEN CENTS A SHARE FOR ACCELERATED WRITE DOWNS AT ITS I. T. T. SHERATON HOTELS UNIT A GAIN OF SEVEN MILLION DOLLARS OR SIX CENTS A SHARE FROM ITS SALE OF A STAKE IN BALLY'S LAS VEGAS OPERATIONS AND A GAIN OF TEN MILLION DOLLARS OR EIGHT CENTS A SHARE ON THE SALE OF A COMPONENTS DISTRIBUTION COMPANY THE NINETEEN NINETY TWO FOURTH QUARTER INCLUDED NEARLY EIGHT HUNDRED MILLION DOLLARS IN PRETAX RESTRUCTURING CHARGES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY I. T. T. GAINED ONE DOLLAR AND FIFTY CENTS TO ONE HUNDRED POINT EIGHT SEVEN FIVE DOLLARS A FIFTY TWO WEEK HIGH AN I. T. T. OFFICIAL SAID THE COMPANY IN THE FOURTH QUARTER CONVERTED ABOUT EIGHT HUNDRED MILLION DOLLARS OF I. T. T. SHERATON DEBT TO EQUITY AND CHAIRMAN RAND V. ARASKOG SAID THE UNIT EXPECTS TO MAKE SIGNIFICANT ANNOUNCEMENTS SOON IN ITS GAMBLING OPERATIONS IT'S OBVIOUS THAT THEY HAVE PLANS FOR SHERATON SAID JACK MODZELEWSKI AN ANALYST WITH PAINEWEBBER INCORPORATED HE AND SOME OTHER ANALYSTS THINK ONE POSSIBILITY MIGHT BE TO SPIN OFF PART OF SHERATON TO BE PUBLIC MEN'S WEARHOUSE SAID JANUARY SALES ROSE FORTY FOUR POINT SEVEN PERCENT TO TWENTY SEVEN POINT TWO MILLION DOLLARS FROM EIGHTEEN POINT EIGHT MILLION DOLLARS A YEAR AGO THE APPAREL RETAILER SAID SALES ROSE TWENTY ONE POINT TWO PERCENT AT STORES OPEN AT LEAST ONE YEAR PIER ONE IMPORTS INCORPORATED SAID SALES AT STORES OPEN MORE THAN ONE YEAR DROPPED THREE POINT SIX PERCENT IN THE FOUR WEEK PERIOD ENDED SATURDAY TOTAL SALES FOR THE PERIOD WERE ESSENTIALLY FLAT AT FORTY ONE POINT TWO MILLION DOLLARS THE SPECIALTY RETAILER SAID CANADIAN PRIMARY STEEL PRODUCTION TOTALED TWO HUNDRED THIRTY FIVE THOUSAND SIX HUNDRED SIXTEEN METRIC TONS IN THE WEEK ENDED JANUARY TWENTY NINTH A ONE POINT THREE PERCENT INCREASE FROM TWO HUNDRED THIRTY TWO THOUSAND FIVE HUNDRED ONE TONS IN THE PREVIOUS WEEK ACCORDING TO STATISTICS CANADA A GOVERNMENT AGENCY THE TOTAL REPRESENTED A SIXTEEN PERCENT DECLINE FROM TWO HUNDRED SEVENTY NINE THOUSAND SEVENTY FOUR TONS A YEAR EARLIER A METRIC TON IS EQUAL TO ABOUT TWO THOUSAND TWO HUNDRED FOUR POINT SIX TWO POUNDS HEILIG MEYERS COMPANY SAID JANUARY SALES ROSE ABOUT FORTY FIVE PERCENT TO AN ESTIMATED FIFTY POINT FOUR MILLION DOLLARS FROM THIRTY FOUR POINT NINE MILLION DOLLARS A YEAR AGO WHILE SAME STORE SALES ROSE EIGHT POINT FOUR PERCENT FOR THE ELEVEN MONTHS ENDED IN JANUARY SALES ROSE ABOUT THIRTY ONE PERCENT TO AN ESTIMATED SIX HUNDRED FIFTY SIX POINT EIGHT MILLION DOLLARS FROM FIVE HUNDRED TWO POINT FOUR MILLION DOLLARS WHILE SAME STORE SALES ROSE ABOUT TWELVE PERCENT HEILIG MEYERS IS A FURNITURE RETAILER OPERATING FIVE HUNDRED SEVENTY ONE STORES IN TWENTY TWO STATES TANDY CORPORATION SAID SALES AT STORES OPEN MORE THAN A YEAR INCREASED FIVE PERCENT IN THE U. S. IN JANUARY THE RETAILER OF CONSUMER ELECTRONICS GOODS SAID SALES AT ALL U. S. STORES WERE UP EIGHTEEN PERCENT TO THREE HUNDRED TWENTY THREE MILLION DOLLARS FROM TWO HUNDRED SEVENTY THREE POINT SEVEN MILLION DOLLARS JAMESWAY CORPORATION SAID SALES FOR THE FOUR WEEKS ENDED JANUARY TWENTY NINTH FELL NEARLY SIXTEEN PERCENT TO TWENTY FIVE MILLION DOLLARS FROM TWENTY NINE POINT SIX MILLION DOLLARS WHILE SAME STORE SALES FELL FIVE PERCENT THE DISCOUNT DEPARTMENT STORE CHAIN WHICH OPERATES STORES IN SEVEN MID ATLANTIC STATES SAID THE REDUCTION IN SALES REFLECTS SEVERE WEATHER AND THE DECLINE IN STORES TO NINETY FOUR THIS YEAR FROM ONE HUNDRED EIGHT A YEAR AGO SALES FOR THE FIFTY TWO WEEKS ENDED JANUARY TWENTY NINTH FELL SIXTEEN PERCENT TO SEVEN HUNDRED TWENTY TWO POINT TWO MILLION DOLLARS FROM EIGHT HUNDRED FIFTY SIX MILLION DOLLARS WHILE SAME STORE SALES FELL EIGHT PERCENT NEW BANKRUPTCY FILINGS HERE DECLINED SLIGHTLY TO THIRTY FOUR THOUSAND NINETY NINE IN NINETEEN NINETY THREE FROM THIRTY FOUR THOUSAND EIGHT HUNDRED NINETY SEVEN A YEAR EARLIER ACCORDING TO PUBLIC DATA CORPORATION A PRIVATE SUBSCRIPTION DATABASE COMPANY FOR THE FIRST HALF NINETEEN NINETY THREE FILINGS IN THE CITY WERE AT A RECORD HIGH LEVEL BUT TRAILED OFF IN THE LAST SIX MONTHS OF THE YEAR THE COMPANY SAID THE OFF PRICE RETAILER SAID THAT SALES FOR THE FISCAL YEAR ENDED SATURDAY INCREASED NINE POINT SIX PERCENT TO ONE HUNDRED SIXTY NINE POINT TWO MILLION DOLLARS FROM ONE HUNDRED FIFTY FOUR POINT FOUR MILLION DOLLARS COMPARABLE STORE SALES DECREASED FIVE POINT EIGHT PERCENT GOTTSCHALKS INCORPORATED SAID JANUARY SALES ROSE FOURTEEN PERCENT TO NINETEEN POINT THREE MILLION DOLLARS FROM SIXTEEN POINT NINE MILLION DOLLARS A YEAR AGO SAME STORE SALES INCREASED NEARLY ELEVEN PERCENT ON A YEAR TO DATE BASIS SAME STORE SALES AT THE DEPARTMENT STORE CHAIN ROSE THREE POINT THREE PERCENT TO THREE HUNDRED FORTY TWO MILLION DOLLARS FROM THREE HUNDRED THIRTY ONE MILLION DOLLARS GYMBOREE CORPORATION SAID JANUARY SALES ROSE FORTY TWO PERCENT TO EIGHT POINT EIGHT MILLION DOLLARS FROM SIX POINT TWO MILLION DOLLARS A YEAR AGO SALES AT STORES OPEN FOR AT LEAST A YEAR ROSE SEVEN PERCENT DURING THE PERIOD THE CHILDREN'S WEAR CHAIN SAID THE LOS ANGELES EARTHQUAKE AFFECTED THIRTEEN OF ITS STORES WITH THREE STILL CLOSED EXCLUDING THE THIRTEEN STORES FOR THE TWO WEEKS FOLLOWING THE EARTHQUAKE JANUARY SALES FOR THE ONE HUNDRED FIFTY TWO STORE CHAIN ROSE FORTY FIVE PERCENT AND SAME STORE SALES WERE UP TEN PERCENT GYMBOREE SAID DRESS BARN INCORPORATED SAID SALES FOR THE FOUR WEEKS ENDED SATURDAY FELL TEN PERCENT TO SIXTEEN POINT THREE MILLION DOLLARS FROM EIGHTEEN POINT TWO MILLION DOLLARS WHILE SALES AT STORES OPEN FOR AT LEAST A YEAR DROPPED EIGHTEEN PERCENT FOR THE THIRTEEN WEEKS ENDED SATURDAY SALES ROSE EIGHT POINT TWO PERCENT TO ONE HUNDRED SIX POINT SIX MILLION DOLLARS FROM NINETY EIGHT POINT FIVE MILLION DOLLARS WHILE SAME STORE SALES FELL FOUR PERCENT THE RETAILER OF WOMEN'S OFF PRICE APPAREL STORES IN FORTY ONE STATES OPERATED SIX HUNDRED FIFTY SEVEN STORES AS OF SATURDAY A TEN PERCENT INCREASE FROM A YEAR AGO THE COMPANY SAID SALES WERE HURT BY THE SEVERE COLD AND SNOWSTORMS DILLARD DEPARTMENT STORES INCORPORATED SAID SALES AT STORES OPEN FOR AT LEAST A YEAR ROSE THREE PERCENT FOR THE MONTH ENDED SATURDAY AND TOTAL SALES WERE UP SIX PERCENT TO TWO HUNDRED NINETY TWO POINT EIGHT MILLION DOLLARS FROM TWO HUNDRED SEVENTY SIX POINT NINE MILLION DOLLARS DURING THE TWELVE MONTH PERIOD ENDED SATURDAY TOTAL SALES ROSE NINE PERCENT TO FIVE POINT ONE BILLION DOLLARS FROM FOUR POINT SEVEN BILLION DOLLARS SALES AT STORES OPEN AT LEAST ONE YEAR INCREASED THREE PERCENT HI LO AUTOMOTIVE INCORPORATED SAID JANUARY SAME STORE SALES OR SALES AT STORES OPEN AT LEAST A YEAR WERE ESSENTIALLY FLAT WHEN COMPARED WITH JANUARY NINETEEN NINETY THREE TOTAL SALES ROSE TEN PERCENT TO SIXTEEN MILLION DOLLARS FROM FOURTEEN POINT FIVE MILLION DOLLARS DISCOUNT APPAREL RETAILER FIFTY OFF STORES INCORPORATED SAID SALES AT STORES OPEN FOR AT LEAST A YEAR INCREASED TWO POINT FIVE PERCENT IN THE FIVE WEEK PERIOD ENDED LAST FRIDAY AND THAT TOTAL SALES FOR THE PERIOD ROSE ELEVEN PERCENT FROM A YEAR EARLIER FOR THE FOURTH QUARTER ENDED FRIDAY COMPARABLE STORE SALES WERE ESSENTIALLY FLAT AND FOR FISCAL YEAR NINETEEN NINETY FOUR FIFTY OFF SAID SUCH SALES WERE DOWN MORE THAN TEN PERCENT TOTAL SALES FOR THE QUARTER INCREASED ELEVEN PERCENT TO SIXTY EIGHT POINT SIX MILLION DOLLARS FROM SIXTY ONE POINT SIX MILLION DOLLARS AND FOR THE YEAR GREW TEN PERCENT TO ONE HUNDRED NINETY NINE POINT SEVEN MILLION DOLLARS FROM ONE HUNDRED EIGHTY ONE MILLION DOLLARS TENNECO INCORPORATED SAID A UNIT WOULD PAY TWO HUNDRED FIFTY MILLION DOLLARS TO REDEEM NOTES THE UNIT TENNECO CREDIT CORPORATION WILL REDEEM ALL OF ITS EIGHT AND THREE EIGHTHS PERCENT NOTES DUE FEBRUARY FIRST NINETEEN NINETY SEVEN THE COMPANY SAID THE NOTES WILL BE REDEEMED FEBRUARY TWENTY EIGHTH AT ONE HUNDRED PERCENT OF PRINCIPAL PLUS INTEREST ACCRUED FROM FEBRUARY FIRST NINETEEN NINETY FOUR TO FEBRUARY TWENTY EIGHTH NINETEEN NINETY FOUR CHASE MANHATTAN BANK IS THE REDEMPTION AGENT A SPOKESWOMAN FOR TENNECO INCORPORATED A MANUFACTURING AND GAS PIPELINE CONCERN SAID THE REDEMPTION WAS PART OF AN OVERALL PLAN TO REDUCE THE COMPANY'S DEBT TRANSCONTINENTAL GAS PIPE LINE CORPORATION A UNIT OF TRANSCO ENERGY COMPANY SAID IT COMPLETED REPAIRS TO ITS NATURAL GAS TRANSMISSION MAIN LINE IN ROCKVILLE MARYLAND AFTER A THIRD PARTY CONTRACTOR PUNCTURED THE LINE WHILE WORKING WITH A BACKHOE TUESDAY REPAIRS WERE COMPLETED BY WEDNESDAY EVENING AND THE THIRTY INCH LINE WAS BACK IN SERVICE YESTERDAY MORNING THE BACKHOE HIT ONE OF FOUR PARALLEL NATURAL GAS LINES LOCATED NEAR ROUTE TWENTY EIGHT AND RESEARCH BOULEVARD THAT ARE PART OF THE COMPANY'S MAIN PIPELINE SYSTEM NO ONE WAS INJURED THE NATURAL GAS WAS REROUTED TO ADJACENT LINES AND DELIVERIES WEREN'T AFFECTED BABBAGE'S INCORPORATED SAID A QUOTE SUBSTANTIAL DECLINE QUOTE IN SALES OF VIDEO GAME SYSTEMS AND SOFTWARE DROVE COMPARABLE STORE SALES DOWN THIRTEEN PERCENT IN ITS FOURTH QUARTER ENDED SATURDAY THE FIGURES REPRESENT SALES AT STORES OPEN FOR AT LEAST A YEAR TOTAL SALES INCREASED TO ONE HUNDRED TWO POINT EIGHT MILLION DOLLARS UP ONLY TWO PERCENT FROM ONE HUNDRED POINT SEVEN MILLION DOLLARS A YEAR EARLIER SALES FOR FISCAL YEAR NINETEEN NINETY FOUR INCREASED TWELVE PERCENT TO TWO HUNDRED THIRTY THREE POINT FOUR MILLION DOLLARS FROM TWO HUNDRED NINE POINT TWO MILLION DOLLARS AND SALES AT STORES OPEN MORE THAN A YEAR ENDED THE FIFTY TWO WEEK PERIOD DOWN FIVE PERCENT THE SOFTWARE RETAILER SAID IT CUT PRICES ON VIDEO GAME SOFTWARE TITLES IN EARLY DECEMBER AND HAD REDUCED ITS INVENTORY BY MORE THAN TWENTY FIVE PERCENT PER STORE COMPARED WITH THE SAME TIME A YEAR EARLIER VALUE CITY DEPARTMENT STORES INCORPORATED SAID SALES FOR THE FOUR WEEKS ENDED SATURDAY FELL SEVEN POINT THREE PERCENT TO THIRTY THREE MILLION DOLLARS FROM THIRTY FIVE POINT SIX MILLION DOLLARS A YEAR AGO SALES AT STORES OPEN FOR AT LEAST A YEAR DECREASED NINE POINT ONE PERCENT THE COMPANY SAID HOWEVER TOTAL SALES FOR THE TWENTY SIX WEEKS ENDED SATURDAY ROSE TWO POINT NINE PERCENT TO FOUR HUNDRED EIGHTY SEVEN POINT ONE MILLION DOLLARS FROM FOUR HUNDRED SEVENTY THREE POINT SIX MILLION DOLLARS THE COMPANY ATTRIBUTED THE DECLINE IN MONTHLY SALES TO THE EFFECTS OF THE SEVERE WINTER WEATHER IN THE MIDWEST AND NORTHEAST WHERE ITS STORES ARE LOCATED VALUE CITY OPERATES A CHAIN OF SEVENTY FIVE FULL LINE DISCOUNT DEPARTMENT STORES JUST ONE DAY AFTER FLAUNTING A MINOR LEGAL VICTORY OVER GENERAL MOTORS CORPORATION VOLKSWAGEN A. G. WAS FORCED TO EAT ITS WORDS ABOUT BROAD EXONERATION IN AN ONGOING INDUSTRIAL ESPIONAGE DISPUTE IN A HUMILIATING REVERSAL OF STATEMENTS MADE WEDNESDAY V. W. CONCEDED YESTERDAY THAT A FRANKFURT DISTRICT COURT JUDGE NEVER SAID THERE WAS NO PROOF G. M. DOCUMENTS MADE THEIR WAY TO V. W. AND PROMISED NOT TO REPEAT THAT FALSE ASSERTION ON WEDNESDAY THE COURT DISMISSED G. M.'S CASE TO GET SEVEN OF ITS FORMER STAFFERS TEMPORARILY BARRED FROM WORKING AT RIVAL V. W. UPON THAT DECISION THE GERMAN AUTO MAKER HAD ISSUED A TRIUMPHANT STATEMENT TOUTING ITS SUCCESS IN THE CIVIL CASE V. W.'S STATEMENT ALSO CLAIMED DISTRICT COURT JUDGE GUENTHER KINNEL HAD ADDED IN HIS ORAL STATEMENTS THAT CRIMINAL ALLEGATIONS THAT G. M. DOCUMENTS MADE THEIR WAY TO V. W. QUOTE COULD NOT BE PROVEN QUOTE V. W. SPOKESMEN WENT ON TO SUGGEST THAT THE JUDGE THEREBY EXONERATED V. W. NOT ONLY OF THE LABOR POACHING CHARGES BUT ALSO IN THE SEPARATE BROADER SCANDAL OVER WHETHER FORMER G. M. PURCHASING CHIEF J. IGNACIO LOPEZ DE ARRIORTUA ABSCONDED WITH SENSITIVE G. M. DOCUMENTS WHEN HE JUMPED TO THE GERMAN CAR MAKER LAST MARCH AFTER THESE ASSERTIONS WERE BROUGHT TO THE ATTENTION OF JUDGE KINNEL HE CALLED V. W.'S LAWYERS TO HIS CHAMBERS AND ENCOURAGED THE COMPANY TO ISSUE A PUBLIC RETRACTION V. W. DID SO SAYING IT MADE A REGRETTABLE MISTAKE IN PUBLICIZING REMARKS THE JUDGE NEVER ACTUALLY MADE V. W. SAID ITS STATEMENT WEDNESDAY CONTAINED A MISINTERPRETATION OF THE ORAL STATEMENTS OF THE JUDGE HE DID NOT MAKE ANY STATEMENT ON THE STATE OF EVIDENCE CONCERNING WHETHER SECRET DOCUMENTS REACHED VOLKSWAGEN A. G. V. W. OFFERED NO EXPLANATION AS TO HOW THE MISINTERPRETATION OF THE JUDGE'S REMARKS CAME ABOUT JUDGE KINNEL COULDN'T BE REACHED FOR COMMENT A SPOKESMAN FOR THE DARMSTADT PUBLIC PROSECUTOR'S OFFICE WHICH HAS BEEN INVESTIGATING THE INDUSTRIAL ESPIONAGE ALLEGATIONS FOR MONTHS CALLED IT COMPLETE RUBBISH FOR V. W. TO IMPLY THAT A JUDGE IN A CIVIL COURT COULD OR WOULD MAKE A STATEMENT HAVING ANY BEARING ON THE CRIMINAL INVESTIGATIONS THE QUESTION OF INDUSTRIAL ESPIONAGE ISN'T IN THE JURISDICTION OF THE CIVIL COURT AND WAS THEREFORE NOT COMMENTED ON IN THE SEVENTEEN PAGE DECISION THE PUBLIC RELATIONS BLUNDER COMES AS THE LATEST IN A SERIES OF ACTIONS THAT UNDERMINE V. W.'S CREDIBILITY WITH THE PUBLIC WHEN THE INDUSTRIAL ESPIONAGE ALLEGATIONS FIRST ERUPTED MR. LOPEZ AND THE SEVEN MEN WHO FOLLOWED HIM TO V. W. SAID THEY HAD TAKEN NOTHING WITH THEM EXCEPT WHAT THEY HAD IN THEIR HEADS AFTER BOXES STUFFED FULL OF G. M. DOCUMENTS WERE FOUND THE STORY WAS AMENDED DOCUMENTS MAY HAVE BEEN TAKEN THEY SAID BUT THEY WEREN'T SECRET DOCUMENTS MR. LOPEZ LATER CONFIRMED THAT HE AND HIS COLLEAGUES HAD SHREDDED MANY G. M. DOCUMENTS SHORTLY AFTER LEAVING THE COMPANY TO PREVENT THEM FROM INADVERTENTLY FALLING INTO V. W. HANDS FOR NOW THE INVESTIGATION CONTINUES HOWEVER NO CHARGES HAVE BEEN FILED AND MR. LOPEZ DENIES ANY WRONGDOING SAGE TECHNOLOGIES INCORPORATED SAID IT INTENDS TO APPLY FOR LISTING ON THE NEW YORK STOCK EXCHANGE SEPARATELY THE COMPANY NAMED ERNST AND YOUNG INDEPENDENT AUDITORS FOR THE COMPANY SAGE SAID IT HAD QUOTE NO DISAGREEMENTS QUOTE WITH ITS FORMER INDEPENDENT AUDITORS ON ACCOUNTING AND FINANCIAL DISCLOSURE MATTERS BUT WANTED AN ACCOUNTING FIRM WITH A NATIONAL PRESENCE SAGE PROVIDES COMPUTER PRODUCTS AND SERVICES TO COMMERCIAL AND GOVERNMENTAL USERS PRINCIPALLY THROUGH ITS AMERIDATA UNIT TODAY'S MAN INCORPORATED SAID SALES FOR THE FOUR WEEKS ENDED JANUARY TWENTY NINTH ROSE ELEVEN PERCENT TO TWELVE POINT SIX MILLION DOLLARS FROM ELEVEN POINT THREE MILLION DOLLARS SALES AT STORES OPEN AT LEAST A YEAR DECLINED SIX PERCENT SALES FOR THE TWELVE MONTHS ENDED JANUARY TWENTY NINTH ROSE TWENTY SIX PERCENT TO ONE HUNDRED SIXTY SEVEN POINT ONE MILLION DOLLARS FROM ONE HUNDRED THIRTY TWO POINT SIX MILLION DOLLARS WHILE SAME STORE SALES ROSE THREE POINT EIGHT PERCENT TODAY'S MAN OPERATES TWENTY ONE MENSWEAR SUPERSTORES IN THREE NORTHEASTERN REGIONAL MARKETS ALTHOUGH OFFICE VACANCY RATES DROPPED IN MANY CITIES LAST YEAR THE FINANCIAL SQUEEZE ON OWNERS OF MANY NEWER BUILDINGS ACTUALLY TIGHTENED QUOTE THE GOOD NEWS IS THAT A RECOVERY IS UNDER WAY QUOTE SAID RAYMOND TORTO OF TORTO WEATON RESEARCH AN ARM OF C. B. COMMERCIAL INCORPORATED A LOS ANGELES BASED BROKERAGE FIRM THE BAD NEWS IS THAT BUILDING OWNERS ARE NOT OUT OF THE WOODS YET THE AVERAGE METROPOLITAN VACANCY RATE DROPPED TO AN EIGHT YEAR LOW OF SEVENTEEN POINT SIX PERCENT LAST YEAR THE FIRM REPORTED BUT IT REMAINED HIGH ENOUGH THAT TENANTS SEEKING NEW SPACE COULD STILL PUSH HARD FOR BARGAINS CONSEQUENTLY MANY OFFICE USERS WHOSE LEASES EXPIRE IN THE NEXT YEAR OR TWO WILL STILL HAVE THE WELCOME OPPORTUNITY TO CUT RENTAL COSTS THEIR SAVINGS WILL COME AT THE EXPENSE OF ALREADY HARD PRESSED DEVELOPERS AS WELL AS BANKS AND INSURANCE COMPANIES THAT GOT STUCK WITH BUILDINGS WHEN THE PREVIOUS OWNERS DEFAULTED ON THEIR LOANS STILL THE DECLINING VACANCY RATE MAY PROMPT MANY OF THEM TO HOLD ONTO THE PROPERTIES UNTIL RENTS START TO RECOVER VACANCY RATES ARE A LEADING INDICATOR BUT NET EFFECTIVE RENTS ARE WHERE THE RUBBER MEETS THE ROAD SAID CRAIG HATKOFF OF NEW YORK BASED VICTOR CAPITAL GROUP WHICH HELPS BANKS AND INSURANCE COMPANIES DETERMINE WHAT TO DO WITH FORECLOSED PROPERTIES BECAUSE VACANCY RATES IN MOST MARKETS REMAINED HIGH ENOUGH TO GIVE TENANTS THE UPPER HAND IN LEASE NEGOTIATIONS NET EFFECTIVE RENTS ERODED LAST YEAR IN NINE OF THE TWELVE MARKETS SURVEYED BY JULIEN J. STUDLEY INCORPORATED A NEW YORK BASED BROKERAGE FIRM NET EFFECTIVE RENTS THE BOTTOM LINE RETURN TO THE LANDLORDS BEFORE DEBT PAYMENTS ARE WHAT'S LEFT FOR THE OWNER AFTER OPERATING EXPENSES REAL ESTATE TAXES AND TENANT CONCESSIONS ARE TAKEN INTO ACCOUNT OWNERS OF POST NINETEEN EIGHTY EIGHT OFFICE BUILDINGS IN CHICAGO ACTUALLY LOST ONE DOLLAR AND THIRTY TWO CENTS PER SQUARE FOOT ON THE AVERAGE NEW TEN YEAR LEASE AND OWNERS IN DOWNTOWN LOS ANGELES LOST FIFTY THREE CENTS A FOOT ACCORDING TO THE SURVEY IT SHOWS HOW FAR BUILDING OWNERS HAVE TO GO TO GET BACK TO ECONOMIC STABILITY SAID STUDLEY CHAIRMAN JULIEN STUDLEY FEW PEOPLE REALIZE HOW FAR DOWN THEY ARE CHICAGO BASED SAM ZELL WHO HAS BEEN GROWING HIS NATIONAL OFFICE PORTFOLIO BY BUYING FORECLOSED PROPERTIES FROM LENDERS SAID OWNERS WHO WRITE BREAK EVEN OR MONEY LOSING LEASES ARE TRYING TO CUT THEIR LOSSES WHAT THEY'RE SAYING TO TENANTS IS I'LL GIVE YOU YOUR SPACE FOR FREE IF YOU CARRY MY OPERATING COSTS FOR TEN YEARS IN TEN YEARS THAT'S WHEN THEY START SEEING A RETURN QUOTE MR. ZELL SAID THAT ABOUT THE ONLY OWNERS WHO CAN AFFORD TO WRITE SUCH LEASES ARE DEEP POCKETED DEVELOPERS THOSE WHO HAVE RESTRUCTURED THEIR DEBT OR LENDERS WHO HAVE TAKEN BUILDINGS BACK THERE ARE VERY FEW OWNER DEVELOPERS LEFT WHO ARE STILL ALIVE HE SAID OWNERS OF NEWER BUILDINGS IN ATLANTA BALTIMORE BOSTON HOUSTON WEST LOS ANGELES PHILADELPHIA AND SAN FRANCISCO ALSO SAW EFFECTIVE RENTS DROP LAST YEAR THE SURVEY REPORTED IN WASHINGTON AND IN MIDTOWN AND DOWNTOWN MANHATTAN THEY SAW MODEST INCREASES SLOWLY DECLINING VACANCY RATES HOWEVER ARE EXPECTED TO REVERSE THE DOWNWARD TREND IN MOST CITIES BUT NOT RIGHT AWAY ACCORDING TO NEW YORK BASED CUSHMAN AND WAKEFIELD ANOTHER NATIONAL BROKERAGE FIRM AVERAGE VACANCY RATES IN CENTRAL BUSINESS DISTRICTS DROPPED TO EIGHTEEN POINT SEVEN PERCENT AT YEAR END FROM A RECORD NINETEEN POINT SIX PERCENT A YEAR EARLIER IN THE SUBURBS RATES FELL TO EIGHTEEN POINT NINE PERCENT FROM TWENTY POINT FOUR PERCENT ONE REASON FOR THE IMPROVEMENT IS THAT NEW CONSTRUCTION PLUNGED TO JUST FOUR MILLION SQUARE FEET LAST YEAR FROM TWENTY SIX MILLION IN NINETEEN NINETY TWO THE FIRM SAID WITH FORTY PERCENT OF NEW NINETEEN NINETY THREE BUILDING CONCENTRATED IN THE RELATIVELY HEALTHY MARKETS OF WASHINGTON SUBURBAN MARYLAND AND NORTHERN VIRGINIA IT'S GOOD NEWS FOR LANDLORDS BUT SOME OF THEM ARE GOING TO HAVE A LONG ROW TO HOE BEFORE THEY GET BACK TO POSITIVE YIELDS SAID ARTHUR MIRANTE THE SECOND CUSHMAN AND WAKEFIELD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN THE ABSENCE OF NEW CONSTRUCTION REAL ESTATE EXPERTS SAY RECOVERY WILL HINGE ON THE CREATION OF WHITE COLLAR JOBS FOR EXAMPLE BECAUSE OF THE RAPID GROWTH OF NATIONSBANK CORPORATION AND FIRST UNION CORPORATION BOTH OF CHARLOTTE N. C. THAT CITY'S VACANCY RATE PLUNGED TO NINE POINT EIGHT PERCENT LAST YEAR FROM NINETEEN POINT EIGHT PERCENT IN NINETEEN NINETY TWO ACCORDING TO C. B. COMMERCIAL THE LARGEST DROP OF THE FIFTY MARKETS IT TRACKS THEY GOBBLED UP VIRTUALLY ANYTHING THAT WOULD BE CONSIDERED CLASS A OR CLASS B. PROPERTY SAID THOMAS O'BRIEN WHO HEADS THE FIRM'S CHARLOTTE OFFICE AFTER DROPPING FROM A PEAK OF ABOUT TWENTY THREE DOLLARS A SQUARE FOOT THREE YEARS AGO TO SIXTEEN DOLLARS AND FIFTY CENTS CHARLOTTE OFFICE RENTS HAVE NOW JUMPED BACK UP TO ABOUT EIGHTEEN DOLLARS HE SAID OWNERS ARE ALSO BENEFITING FROM THE GENERAL EROSION OF CONCESSIONS LIKE FREE RENT TENANT IMPROVEMENTS AND PARKING ALLOWANCES SALT LAKE CITY FORT LAUDERDALE FLORIDA KANSAS CITY MISSOURI AND ORLANDO FLORIDA ALSO SAW VACANCY RATES DROP SIGNIFICANTLY OVER THE PAST YEAR ACCORDING TO C. B. COMMERCIAL IN TIGHTENING MARKETS OWNERS OFTEN FEEL THEY CAN TRIM OUT OF POCKET EXPENSES WITHOUT RISKING TENANT LOSS THIS IS PARTICULARLY TRUE FOR LARGE BLOCKS OF PRIME SPACE WHICH ARE USUALLY THE FIRST TO BECOME SCARCE THE FIRST THINGS TO GO IN A TIGHTENING MARKETPLACE ARE THE OWNER'S SOFT COSTS THE RENT CONCESSIONS AND PROMISES TO PAY FOR CONSTRUCTION EXPLAINED BRUCE MOSLER VICE CHAIRMAN OF GALBREATH RIVERBANK A NEW YORK BASED BROKERAGE QUOTE THE NEXT THING THAT GOES IS THE LANDLORD'S WILLINGNESS TO LOCK IN A LEASE FOR FIFTEEN YEARS QUOTE IN WASHINGTON FOR EXAMPLE ONE OF THE HEALTHIEST OFFICE MARKETS IN THE NATION OWNERS HAVE BECOME FAR STINGIER ON CONCESSIONS THE STUDLEY SURVEY REVEALED AS A RESULT WASHINGTON SAW NET EFFECTIVE RENTS JUMP MORE THAN THE ELEVEN OTHER CITIES SURVEYED WE DO THINK RENTS ARE STABILIZING SAID JEFF HINES PRESIDENT OF HOUSTON BASED HINES INTEREST WHICH OWNS OFFICE BUILDINGS NATIONWIDE BUT THEY MAY BE STABILIZING AT A VERY LOW RATE FOR A VERY LONG PERIOD OF TIME MR. TORTO OF C. B. COMMERCIAL PREDICTED IN NINETEEN NINETY EIGHT THE RENTS IN REAL TERMS WILL BE WHAT THEY WERE IN NINETEEN NINETY IT'S A GREAT SITUATION IF YOU'RE BUYING NOW BUT IF YOU'RE SITTING THERE TRYING TO RECOVER TO WHERE YOU WERE IN NINETEEN NINETY YOU'VE GOT FOUR MORE YEARS TO WAIT AND WITH MANY INSURANCE COMPANY LENDERS RELUCTANT TO EXTEND FIVE YEAR AND SEVEN YEAR LOANS THAT ARE NOW COMING DUE THE BOTTOMING OUT OF THE MARKET HAS COME TOO LATE FOR SOME OWNERS LANDLORDS ARE STILL LOSING THEIR BUILDINGS SAYS MR. STUDLEY QUOTE BUT IT MAY BE THAT THE FINANCIAL INSTITUTIONS THAT ARE RECOVERING THE BUILDINGS WILL BE BETTER OFF THAN THEY ANTICIPATED QUOTE REX STORES CORPORATION SAID TOTAL SALES FOR JANUARY ROSE THIRTY PERCENT TO TWENTY FOUR POINT NINE MILLION DOLLARS FROM NINETEEN POINT ONE MILLION DOLLARS A YEAR AGO COMPARABLE STORE SALES ROSE FIVE PERCENT TO EIGHTEEN POINT TWO MILLION DOLLARS FROM SEVENTEEN POINT THREE MILLION DOLLARS THE COMPANY SAID TOTAL SALES FOR THE NINETEEN NINETY FOUR FISCAL YEAR WERE TWO HUNDRED EIGHTY NINE POINT NINE MILLION DOLLARS UP FROM TWO HUNDRED TWENTY FIVE POINT SEVEN MILLION DOLLARS IN FISCAL NINETEEN NINETY THREE COMPARABLE STORE SALES FOR THE YEAR ROSE EIGHT PERCENT THE SPECIALTY RETAILER OF CONSUMER ELECTRONIC PRODUCTS AND APPLIANCES SAID COMPARABLE STORE SALES ARE THOSE FOR STORES OPEN FOUR FULL FISCAL QUARTERS BUT THE COMPANY SAID THAT FROM NOW ON IT WILL CONSIDER A STORE TO BE COMPARABLE AFTER IT HAS BEEN OPEN FOR SIX FULL FISCAL QUARTERS TOM BROWN INCORPORATED SAID ITS NATURAL GAS AND OIL RESERVES INCREASED NINETEEN PERCENT LAST YEAR THE COMPANY SAID RESERVES INCREASED TO AN EQUIVALENT OF ONE HUNDRED FIFTY ONE BILLION CUBIC FEET OF NATURAL GAS FROM ONE HUNDRED TWENTY SEVEN BILLION CUBIC FEET A YEAR EARLIER TOM BROWN SAID GAS RESERVES INCREASED TWENTY FIVE PERCENT TO ONE HUNDRED THIRTY ONE BILLION CUBIC FEET WHILE OIL RESERVES FELL THIRTEEN PERCENT TO THREE POINT THREE MILLION BARRELS INPUT SLASH OUTPUT INCORPORATED SAID IT DISCOVERED OIL IN MISSISSIPPI THE SEISMIC INSTRUMENT COMPANY SAID ITS EXPLORATION AND EXPLOITATION UNIT OUTPUT EXPLORATION COMPANY REPORTED THE KING RANCH OIL AND GAS INCORPORATED NUMBER ONE ATCHLEY THIRTEEN TO FOUR WELL FLOWED ONE THOUSAND ONE HUNDRED FIFTY BARRELS OF OIL A DAY FROM THE NORPHELT FORMATION BELOW FOURTEEN THOUSAND TWO HUNDRED FEET AND SEVEN HUNDRED TWENTY ONE BARRELS OF OIL A DAY FROM THE SMACKOVER FORMATION BELOW THIRTEEN THOUSAND NINE HUNDRED TWENTY SIX FEET INPUT SLASH OUTPUT SAID THE WELL THREE MILES SOUTH OF DESOTO MISSISSIPPI WILL BE COMPLETED FROM BOTH FORMATIONS AND PRODUCTION WILL BEGIN IN MARCH THE COMPANY SAID ITS UNIT OWNS A FIFTY PERCENT WORKING INTEREST IN THE WELL THE OPERATOR KING RANCH OIL AND GAS INCORPORATED OWNS A FORTY PERCENT WORKING INTEREST AND A PRIVATE INVESTOR OWNS TEN PERCENT A. WAYNE GRIFFITH RECENTLY RETIRED AS EXECUTIVE VICE PRESIDENT AND CHIEF MARKETING OFFICER OF CONSECO INCORPORATED WAS ELECTED A DIRECTOR OF THIS INSURANCE HOLDING COMPANY INCREASING BOARD MEMBERSHIP TO SEVEN CHARMING SHOPPES INCORPORATED SAID SALES FOR THE FOUR WEEKS ENDED JANUARY TWENTY NINTH WERE SIXTY POINT FIVE MILLION DOLLARS ABOUT FLAT WITH A YEAR AGO WHILE SALES AT STORES OPEN AT LEAST A YEAR FELL NINE PERCENT THE APPAREL RETAILER WHICH OPERATES ONE THOUSAND THREE HUNDRED THIRTY THREE STORES IN FORTY FIVE STATES UNDER THE NAMES FASHION BUG AND FASHION BUG PLUS SAID SEVERE WINTER STORMS HAD AN ADVERSE EFFECT ON SALES STARBUCKS CORPORATION SAID TOTAL SALES FOR THE FOUR WEEKS ENDED JANUARY THIRTIETH ROSE SEVENTY PERCENT TO SIXTEEN POINT FIVE MILLION DOLLARS FROM NINE POINT SEVEN MILLION DOLLARS A YEAR AGO SALES AT STORES OPEN AT LEAST THIRTEEN MONTHS INCREASED TWELVE PERCENT OWENS ILLINOIS INCORPORATED SAID IT IS SLASHING ITS U. S. WORK FORCE BY TEN PERCENT OR TWO THOUSAND EMPLOYEES AND TAKING A CHARGE OF THREE HUNDRED FIFTY FIVE MILLION DOLLARS OR TWO DOLLARS AND NINETY EIGHT CENTS A SHARE FOR THE NINETEEN NINETY THREE FOURTH QUARTER ON A PRETAX BASIS THE CHARGE TOTALS FIVE HUNDRED SEVENTY FIVE MILLION DOLLARS AND INCLUDES TWO HUNDRED FIFTY MILLION DOLLARS FOR RESTRUCTURING AND THREE HUNDRED TWENTY FIVE MILLION DOLLARS TO HANDLE FUTURE ASBESTOS CLAIMS ANALYSTS HAD EXPECTED EARNINGS OF AS MUCH AS FIVE CENTS A SHARE THE CHARGES ARE EXPECTED TO PUSH THE COMPANY SHARPLY INTO THE LOSS COLUMN WHEN IT ANNOUNCES ITS EARNINGS NEXT WEEK THE ONE TIME RESTRUCTURING CHARGE INCLUDES SEVERANCE AND EARLY RETIREMENT COSTS AND COSTS OF STREAMLINING FACTORY OPERATIONS OWENS ILLINOIS SAID THE RESTRUCTURING PROGRAM WILL RESULT IN ANNUAL PRETAX SAVING OF SEVENTY FIVE MILLION DOLLARS OR MORE BEGINNING IN NINETEEN NINETY FOUR THE COMPANY SAID THE RESTRUCTURING GREW OUT OF A QUOTE COMPREHENSIVE RE ENGINEERING STUDY QUOTE IN THE FOURTH QUARTER AND IS DESIGNED TO REDUCE COSTS IMPROVE EFFICIENCY AND ENHANCE CUSTOMER SERVICE THE GLASS AND PLASTIC PACKAGING MANUFACTURER SAID IN A STATEMENT THE WORK FORCE CUTBACKS WILL HIT AN ESTIMATED TWO THOUSAND HOURLY WORKERS AT TWENTY ONE GLASS PACKAGING PLANTS THROUGHOUT THE U. S. THE COMPANY SAID THE COMPANY'S OVERSEAS OPERATIONS WON'T BE AFFECTED BY THE CUTBACKS SEPARATELY THE COMPANY TOOK A CHARGE OF THREE HUNDRED TWENTY FIVE MILLION DOLLARS TO ACCOUNT FOR ANTICIPATED ASBESTOS LAWSUIT CLAIMS THE NUMBER OF CASES PENDING AGAINST THE COMPANY HAS BEEN REDUCED FROM A HIGH OF NINETY TWO THOUSAND IN NINETEEN NINETY ONE TO FORTY THREE THOUSAND AS OF DECEMBER THIRTY FIRST NINETEEN NINETY THREE ALTOGETHER THE COMPANY HAS DISPOSED OF ONE HUNDRED FORTY THREE THOUSAND CASES INCLUDING THIRTY ONE THOUSAND IN NINETEEN NINETY THREE IT SAID THE COST OF SOME SETTLEMENTS HAS BEEN HIGHER THAN EXPECTED SAID THOMAS L. YOUNG OWENS ILLINOIS EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL BUT WE HAVE CUT OUR CASE BACKLOG IN HALF AND SIGNIFICANTLY REDUCED OUR EXPOSURE TO HIGH COST CLAIMS THE COMPANY MAY NEED TO TAKE ADDITIONAL CHARGES IF IT LOSES A PENDING NEW JERSEY CASE IN WHICH IT IS SEEKING COVERAGE UNDER INSURANCE POLICIES FOR ASBESTOS CLAIMS BUT ONE ANALYST PRAISED THE WAY THE COMPANY IS REDUCING ITS MANUFACTURING COSTS AND ITS OUTSTANDING ASBESTOS LIABILITIES WHICH STEM FROM A BUSINESS UNIT THE COMPANY SOLD IN NINETEEN FIFTY EIGHT THIS IS GOING TO ADD BIG TIME TO THEIR EARNINGS SAID JOEL G. TISS AN ANALYST WITH LEHMAN BROTHERS THIS IS VERY POSITIVE FOR THE COMPANY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING OWEN ILLINOIS SHARES ROSE TWENTY FIVE CENTS APIECE TO ELEVEN POINT EIGHT SEVEN FIVE DOLLARS ORDERS TO U. S. FACTORIES ROSE FOR THE FIFTH CONSECUTIVE MONTH IN DECEMBER A FURTHER SIGN OF STRENGTH IN MANUFACTURING THAT COULD SPILL OVER INTO THIS YEAR THE COMMERCE DEPARTMENT REPORTED NEW ORDERS FOR ALL MANUFACTURERS ROSE ONE POINT TWO PERCENT IN DECEMBER TO TWO HUNDRED SIXTY SIX POINT OH TWO BILLION DOLLARS FROM TWO HUNDRED SIXTY TWO POINT SEVEN SEVEN BILLION DOLLARS THE PREVIOUS MONTH QUOTE BASICALLY THE ECONOMY IS GOING GREAT GUNS RIGHT NOW QUOTE SAID MERRILL LYNCH ECONOMIST BRUCE STEINBERG DURABLE GOODS POSTED ROBUST TWO POINT ONE PERCENT GROWTH IN DECEMBER ABOUT THE SAME AS THE TWO POINT TWO PERCENT ESTIMATE IN A PRELIMINARY REPORT LAST WEEK THIS INCREASE COMES ON THE HEELS OF TWO POINT TWO PERCENT GROWTH IN NOVEMBER AND TWO POINT SIX PERCENT IN OCTOBER ORDERS FOR NONDURABLE GOODS GAINED ZERO POINT TWO PERCENT IN DECEMBER THE DEPARTMENT SAID NEW ORDERS FOR THE WHOLE YEAR WERE UP FIVE POINT NINE PERCENT TO THREE POINT OH SIX NINE TRILLION DOLLARS ORDERS FOR DURABLE GOODS ACCOUNTED FOR MOST OF THE YEAR'S GROWTH RISING EIGHT POINT SEVEN PERCENT WHILE NONDURABLES GREW ONLY TWO POINT NINE PERCENT ORDERS OF NONDEFENSE CAPITAL GOODS EXCLUDING AIRCRAFT WENT UP SIX POINT TWO PERCENT IN DECEMBER CONTINUING A SEVEN MONTH CLIMB FOR THE FULL YEAR THESE ORDERS WERE UP FIFTEEN POINT FOUR PERCENT THE REPORT MEANS WE HAD STRONG INVESTMENT AND WILL BE ABLE TO COMPETE MORE EFFECTIVELY BY IMPROVING LABOR PRODUCTIVITY AND THE QUALITY OF GOODS SAID KURT KARL AN ECONOMIST FOR W. E. F. A. GROUP SEPARATELY THE FEDERAL RESERVE SAID IT WILL RELEASE REVISIONS TODAY ON ITS INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION FIGURES DATING BACK TO NINETEEN NINETY SOME ANALYSTS ARE EXPECTING THE REVISIONS IN CAPACITY UTILIZATION OVER THE PERIOD TO BE SUBSTANTIALLY DOWNWARD THAT WOULD SUGGEST INFLATION IS WELL UNDER CONTROL AS HIGH UTILIZATION FIGURES ARE OFTEN ASSOCIATED WITH PRODUCTION BOTTLENECKS AND PRICE INCREASES THE FED'S MOST RECENT REPORT FOR NOVEMBER SHOWED INDUSTRY OPERATING AT EIGHTY THREE POINT OH PERCENT OF CAPACITY ALSO YESTERDAY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS SOARED LAST WEEK PROBABLY BECAUSE CLAIMS WERE HELD DOWN THE PREVIOUS WEEK BY COLD WEATHER AND THE MARTIN LUTHER KING HOLIDAY CLAIMS LAST WEEK SHOT UP FIFTY NINE THOUSAND TO FOUR HUNDRED TWENTY TWO THOUSAND THE HIGHEST SINCE JULY NINETEEN NINETY TWO FROM A REVISED THREE HUNDRED SIXTY THREE THOUSAND THE PREVIOUS WEEK THE FOUR WEEK MOVING AVERAGE CONSIDERED A BETTER INDICATOR OF LABOR MARKET TRENDS ROSE TO THREE HUNDRED SEVENTY SEVEN THOUSAND TWO HUNDRED FIFTY FROM THREE HUNDRED SIXTY ONE THOUSAND THE WEEK BEFORE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED IT WAS A COLD WINTER NIGHT AND PAUL SPERCO HAD NO IDEA HE WAS ABOUT TO BECOME JUST ANOTHER HOTEL STATISTIC HE OPENED THE DOOR TO HIS ROOM AT THE NOVOTEL NEW YORK PUSHED OUT HIS ROOM SERVICE CART AND CLICK THE DOOR CLOSED BEHIND HIM AND HE WAS KEYLESS QUOTE I WALKED DOWN THE HALL LOOKING FOR A HOUSE PHONE TO CALL SOMEONE QUOTE SAYS MR. SPERCO A NORTH BRUNSWICK N. J. AUTO DEALER THANK GOD ONE AT LEAST HAD MY UNDERWEAR ON MOST HOTELS DON'T TRACK HOW MANY UNFORTUNATE CUSTOMERS GET LOCKED OUT BUT NOVOTEL A FOUR HUNDRED SEVENTY FOUR ROOM PROPERTY BASED IN MANHATTAN'S THEATER DISTRICT DOES TWO YEARS AGO IT STARTED SURVEYING ITS EMPLOYEES TO SEE HOW THEIR TIME WAS SPENT MANAGEMENT DISCOVERED THAT SECURITY PERSONNEL WERE SPENDING TOO MUCH TIME UNLOCKING DOORS FOR STRANDED GUESTS TWO HUNDRED FIFTY TWO TIMES LAST YEAR IN MANY CASES THESE ACCIDENTAL TOURISTS MEET THEIR FATE THROUGH TRAVELERS' VANITY GUESTS WHO ORDER WINE OR BEER FOR THEIR ROOMS SOMETIMES PREFER TO PUSH THEIR BOTTLE STREWN TRAYS DOWN THE HALL SAYS STEVE BAKER SALES DIRECTOR FOR NOVOTEL A UNIT OF ACCOR GROUP IN PARIS PREOCCUPIED WITH GOOD APPEARANCES THESE GUESTS FORGET THAT THEIR OWN DOORS AUTOMATICALLY LOCK SHUT IF YOU DON'T HAVE YOUR FOOT IN THE DOOR AND YOU DON'T HAVE YOUR KEY YOU'RE OUT MR. BAKER SAYS NOVOTEL WHICH CHARGES ABOUT ONE HUNDRED SEVENTY DOLLARS A NIGHT HAS SOME NICE AMENITIES SUCH AS MULTILINGUAL VOICE MAIL BUT THE HOUSE PHONES ON EACH OF THE HOTEL'S TWENTY SEVEN FLOORS HAVE TURNED OUT TO BE ESPECIALLY IMPORTANT AFTER ALL THE NAKED WOMAN WHO LOCKED HERSELF OUT SHE WAS GETTING ICE MIGHT HAVE CAUSED A STIR ON THE ELEVATOR LOCKOUTS ARE NOT ALWAYS ACCIDENTAL ONE HAPLESS MAN WAS EVICTED FROM HIS ROOM BY HIS ANGRY WIFE AND SHOWED UP IN THE LOBBY IN HIS UNDERWEAR HE HAD NOWHERE ELSE TO GO MR. BAKER SAYS ANOTHER TIME A SLEEP WALKING GUEST ENDED UP IN THE HALLWAY HE MEANT TO OPEN THE BATHROOM DOOR AND MISCALCULATED MR. BAKER SAYS FOR ALL THE EMBARRASSMENTS LESS THAN ONE PERCENT OF NOVOTEL'S GUESTS SUFFER OUT OF ROOM EXPERIENCES AND THE TRENDS ARE PROMISING THE NUMBER OF NOVOTEL GUESTS WHO SHUT THEMSELVES OUT LAST YEAR FELL BY THREE PERCENT COMPARED TO NINETEEN NINETY TWO BUT NOVOTEL ISN'T TAKING ANY CHANCES WE'VE INCREASED THE SIGNAGE ON ALL THE FLOORS MR. BAKER SAYS POINTING OUT THE HOUSE PHONES WARNER LAMBERT COMPANY MORRIS PLAINS N. J. S. MORGAN MORTON FIFTY FOUR YEARS OLD PRESIDENT OF THE WORLD WIDE SHAVING PRODUCTS GROUP AT THE HEALTH CARE AND CONSUMER PRODUCTS CONCERN WAS NAMED TO THE ADDITIONAL POSITION OF CORPORATE VICE PRESIDENT THE POSITION IS NEW WHAT ARE MUTUAL FUNDS TELLING INVESTORS TO EXPECT THIS YEAR IF THE LETTERS THEY'RE SENDING TO SHAREHOLDERS OFFER ANY CLUES THE MESSAGES OF CHOICE ARE DON'T EXPECT NINETEEN NINETY THREE STYLE RETURNS FOREVER AND DON'T START SELLING JUST BECAUSE THE MARKETS BECOME UNCOOPERATIVE TAKE A YEAR END WRAP UP LETTER RECENTLY MAILED BY FIDELITY INVESTMENTS AFTER POINTING OUT STOCK FUNDS' HEADY PERFORMANCE IN THE NINETIES AGAINST MAJOR INDEXES IT DELIVERS A PROGNOSTICATION QUOTE THROUGH THE REST OF THIS DECADE INVESTMENT RETURNS WILL PROBABLY BE MORE MODEST QUOTE OTHER FIRMS BEGAN PREACHING A SIMILAR SERMON WELL BEFORE THE NEW YEAR FOR INSTANCE SCUDDER STEVENS AND CLARK INCORPORATED INVESTMENT ADVISERS TO SCUDDER FUNDS IN LATE SEPTEMBER ASKED INVESTORS WHETHER RECENT HIGH RETURNS HAD CAUSED THEIR EXPECTATIONS TO BECOME TOO HIGH EXPLAINING THAT RECORD GAINS IN BOTH STOCKS AND BONDS WERE PROVOKED BY TUMBLING INTEREST RATES THE SCUDDER LETTER ADVISED THAT FEW AREAS OF SIGNIFICANT UNDERVALUATION EXIST IN THE MARKETS WHICH MEANS FEWER OPPORTUNITIES FOR RETURNS OF THE SAME MAGNITUDE AS THOSE WE HAVE WITNESSED SINCE NINETEEN EIGHTY TWO MOST ANY FIRM WOULD BE APT TO URGE CAUTION AFTER LOOKING AT NINETEEN NINETY THREE'S FIGURES ACCORDING TO LIPPER ANALYTICAL SERVICES DOMESTIC STOCK FUNDS RETURNED AN AVERAGE TWELVE POINT FIVE ONE PERCENT IN NINETEEN NINETY THREE WHILE THE AVERAGE GAIN FOR WORLD EQUITY FUNDS WAS A WHOPPING FORTY THREE PERCENT DOMESTIC TAXABLE BOND FUNDS AVERAGED A NINE POINT SIX SIX PERCENT RETURN THE NUMBERS CREATE SUCH POTENTIAL FOR FUTURE DISAPPOINTMENTS THAT FIDELITY ABANDONED ITS STANDARD OUTLOOK FORMAT WHICH TYPICALLY DEALS WITH SPECIFIC SECTORS OR FUNDS FOR A BROADER APPROACH TO SOME EXTENT PEOPLE IN NINETEEN NINETY THREE BECAME A LITTLE BIT MORE SPECULATIVE THAN THEY HAVE IN YEARS PAST NEIL LITVACK FIDELITY'S EXECUTIVE VICE PRESIDENT OF MARKETING SAID IN AN INTERVIEW ALTHOUGH PLENTY OF INVESTORS REMAIN TOO RISK AVERSE FOR THEIR FINANCIAL GOALS HE SAID AN IMPORTANT PURPOSE OF THE LETTER WAS TO CAUTION CUSTOMERS WHO GOT THEIR FIRST TASTE OF INVESTING IN NINETEEN NINETY THREE THOUGH THEY WERE LIKELY HANDSOMELY REWARDED FOR CHANCES THEY TOOK LAST YEAR'S SUCCESS DOESN'T MEAN THAT THEIR INVESTMENTS WERE THE RIGHT LONG TERM CHOICES HE ADDED THE SAME TONE PREVAILED IN RECENT INVESTOR LITERATURE FROM VANGUARD GROUP FUNDS LATE LAST YEAR THE FIRM MAILED INVESTORS A TWO PAGE QUESTION AND ANSWER INTERVIEW WITH CHAIRMAN JACK BOGLE THE SUBJECT RISK THE FORM LETTERS HOWEVER HAVE YET TO CHECK INVESTOR ENTHUSIASM MARKETING DEPARTMENTS REPORT STRONG STOCK FUND SALES WITH MANY PREDICTIONS THAT JANUARY WILL OUTPACE THE MONTHLY RECORD OF FOURTEEN POINT FIVE BILLION DOLLARS IN SALES SET IN DECEMBER BUT FACING THE POSSIBILITY THAT THIS ENTHUSIASM COULD TURN QUICKLY TO DISMAY FUND LETTERS ARE WARNING INVESTORS NOT TO TRY TO PREDICT SHORT TERM MARKET MOVES AND THEIR LANGUAGE SUGGESTS AN EFFORT TO AVOID AN EPIDEMIC OF REDEMPTIONS IF MARKETS HEAD SOMEWHERE OTHER THAN NORTH FOR EXAMPLE A VANGUARD NEWSLETTER MAKING ITS WAY THROUGH THE POST FEATURES A POINT SLASH COUNTERPOINT COLUMN THAT GIVES READERS A FACE OFF BETWEEN THE BULLS AND THE BEARS THE COLUMN'S SUMMARY HOWEVER ADDRESSES LONG TERM INVESTORS SAYING THE DEBATE IS LARGELY A DIVERSION RATHER THAN TRYING TO EXPLOIT PERCEIVED MARKET CONDITIONS POINT SLASH COUNTERPOINT COUNSELS STAY THE COURSE . REGARDLESS OF THE MOMENTARY WAXING AND WANING OF HOPES AND FEARS IN THE MARKETPLACE WHEN BIG BUSINESSES RECRUIT NEW COLLEGE GRADUATES NOWADAYS THEY INCREASINGLY ENCOUNTER NEW COMPETITION SMALL BUSINESSES MORE SMALL COMPANY OWNERS ARE TURNING TO COLLEGES AND UNIVERSITIES TO FILL JOBS ENTREPRENEURS WHO ONCE HAD TO HUNT FOR THE CAMPUS WELCOME MAT NOW FIND PLACEMENT OFFICERS EAGER TO COURT THEM AT THE SAME TIME SMALL EMPLOYERS ALSO RECEIVE MORE ATTENTION FROM JOB SEEKERS DISCOURAGED BY WEAK PROSPECTS AT MANY LARGER COMPANIES QUOTE MANY MORE M. B. A. GRADUATES AND ALUMNI ARE GOING INTO START UP VENTURES QUOTE SAYS LYNN SCHUMACHER DIRECTOR OF THE CENTER FOR PROFESSIONAL CAREER DEVELOPMENT AT DEPAUL UNIVERSITY IN CHICAGO HIRING BY SMALL BUSINESSES ALSO HAS SOARED RECENTLY AT SAINT LAWRENCE UNIVERSITY WE'RE LOOKING AT ABOUT THIRTY PERCENT OF OUR NINETEEN NINETY THREE GRADUATES GOING TO WORK FOR SMALL COMPANIES SAYS LEE SVETE DIRECTOR OF CAREER PLANNING FOR THE CANTON N. Y. SCHOOL THAT PERCENTAGE WAS JUST EIGHT PERCENT TO TEN PERCENT THREE YEARS AGO SOME OF THESE COMPANIES I NEVER EVEN HEARD OF HE ADDS LAST SPRING SAINT LAWRENCE ASSISTED KEITH BESSE IN FINDING A TECHNICAL SALES REPRESENTATIVE FOR SAPPHIRE ENGINEERING INCORPORATED HIS SMALL SPECIALTY MANUFACTURING FIRM IN NORTH FALMOUTH MASSACHUSETTS MR. BESSE SAYS THAT SAINT LAWRENCE HIS ALMA MATER LINED UP A POOL OF QUALIFIED APPLICANTS WITHIN TWO DAYS HE SELECTED SCOTT BISHOP AFTER INTERVIEWING NINE STUDENTS THE NINETEEN NINETY THREE GRADUATE IS DOING A GREAT JOB MR. BESSE SAYS THE TRADITIONAL COLLEGE PLACEMENT SYSTEM DOESN'T ALWAYS FIT THE NEEDS OF SMALL AND MIDSIZE COMPANIES HOWEVER THEIR HIRING PATTERNS DIFFER FROM THOSE OF BIG CONCERNS THEY DON'T SIT THERE IN JULY AND PLAN OUT A COLLEGE RECRUITING PLAN NOTES ROBERT GREENBERG DIRECTOR OF CAREER SERVICES AT THE UNIVERSITY OF TENNESSEE IN KNOXVILLE SMALL BUSINESS OWNERS TEND TO FILL VACANCIES AS THEY ARISE AND AREN'T INTERESTED IN TRAVELING TO DIFFERENT CAMPUSES TO FILL A POSITION DOCTOR GREENBERG SAYS IN FACT MANY ENTREPRENEURS LACK THE TIME TO CONDUCT ANY JOB INTERVIEWS ON CAMPUS SO PLACEMENT DIRECTORS ARE TAILORING THEIR SERVICES TO SUIT SMALL BUSINESS OWNERS HARVARD BUSINESS SCHOOL SAYS IT'S EXPLORING THE USE OF VIDEOCONFERENCING TO SPARE SMALL BUSINESSES THE CHORE OF GOING TO THE CAMPUS FOR INTERVIEWS SOME SCHOOLS ARE RUNNING JOB FAIRS AIMED AT SMALL BUSINESS OWNERS OTHERS ARE SPONSORING INTERNSHIP PROGRAMS TO FAMILIARIZE THEM WITH THE IDEA OF USING COLLEGE PLACEMENT OFFICES VICTOR R. LINDQUIST DIRECTOR OF NORTHWESTERN UNIVERSITY'S PLACEMENT SERVICE SAYS HE RECENTLY SPENT FIFTEEN MINUTES ON THE PHONE HELPING A SMALL BUSINESS OWNER WRITE A JOB DESCRIPTION FOR AN INDUSTRIAL ENGINEER THE OWNER LATER POSTED THE VACANCY ON CAMPUS BOSTON UNIVERSITY'S SCHOOL OF MANAGEMENT ESTABLISHED A COMPUTERIZED JOB MATCHING SYSTEM FOR NEW AND RECENT GRADUATES DURING THE PAST YEAR SMALL AND MEDIUM SIZE FIRMS ARE HEAVILY USING THIS NEW SYSTEM OFFICIALS SAY THE SCHOOL ALSO EMPLOYS CAREER SEARCH A NEEDHAM MASSACHUSETTS FIRM THAT LISTS TWO HUNDRED FORTY SEVEN THOUSAND BUSINESSES TO ASSIST GRADUATES IN LOCATING OTHER SMALLER EMPLOYERS NEARLY TWO DOZEN NINETEEN NINETY THREE GRADUATES LANDED JOBS MANY OF THEM WITH SMALL BUSINESSES THROUGH CAREER SEARCH OR THE JOB MATCHING SYSTEM SCHOOL OFFICIALS REPORT PETER VERUKI DIRECTOR OF CAREER PLANNING AND PLACEMENT AT THE OWEN SCHOOL OF MANAGEMENT AT VANDERBILT UNIVERSITY SAYS THAT HE AND HIS STAFF COMPILED A LIST OF FIVE THOUSAND MOSTLY SMALLER BUSINESSES BY VISITING CHAMBERS OF COMMERCE IN SOUTHEASTERN CITIES NOW ONCE A YEAR MR. VERUKI'S OFFICE SENDS THOSE COMPANIES PROFILE BOOKS DESCRIBING THE SCHOOL'S LATEST GRADUATES THE EFFORT HAS BEGUN TO PAY OFF WE'RE STARTING A FORMAL RECRUITING PROGRAM FOR COLLEGE GRADUATES THIS YEAR SAYS LEON KLEIN PRESIDENT OF SHARED RESOURCES MANAGEMENT INCORPORATED AN INFORMATION TECHNOLOGY SERVICES FIRM IN SUBURBAN SAINT PAUL MINNESOTA MR. KLEIN INITIALLY HESITATED WHEN PAUL REDIN CAREER SERVICES DIRECTOR AT BETHEL COLLEGE IN SAINT PAUL MINNESOTA INVITED HIM TO RECRUIT LAST FALL INSTEAD MR. KLEIN SELECTED ONE BETHEL STUDENT AS AN INTERN THE INTERN IS WORKING OUT SO WELL THAT MR. KLEIN SAYS HE PLANS TO HIRE AT LEAST SEVEN COLLEGE GRADUATES THIS SPRING OUT OF THE SEVENTY EMPLOYEES EXPECTED TO JOIN HIS ONE HUNDRED THIRTY PERSON FIRM DURING NINETEEN NINETY FOUR SHARED RESOURCES'S REVENUE HAS GROWN ONE HUNDRED PERCENT TO ABOUT SEVEN MILLION DOLLARS DURING THE PAST TWO YEARS HE NOTES QUOTE WE'RE AT THE SIZE WHERE WE'RE BUILDING TEAMS AND WE CAN START EXPOSING COLLEGE GRADUATES TO PROJECTS QUOTE SMALL BUSINESSES AREN'T ONLY FILLING ENTRY LEVEL SPOTS THROUGH THEIR EXPANDED COLLEGE RECRUITING BUSINESS SCHOOL GRADUATES MANY WITH EXTENSIVE WORK EXPERIENCE ARE ABLE TO HIT THE GROUND RUNNING AND CAN EVEN TAKE SENIOR LEVEL MANAGEMENT POSITIONS AT SMALL BUSINESSES SAYS PAULA DESLATTE DIRECTOR OF CAREER SERVICES AT THE GRADUATE SCHOOL OF BUSINESS AT THE UNIVERSITY OF CHICAGO TWO YEARS AGO KURT CERULLI FOUNDED CERULLI ASSOCIATES INCORPORATED A STRATEGIC CONSULTING FIRM FOR FINANCIAL COMPANIES AFTER WORKING MANY YEARS FOR LARGER CONCERNS HE HIRED THREE OF THE BOSTON FIRM'S FIVE STAFF MEMBERS STRAIGHT OUT OF BUSINESS SCHOOL MY IDEAL CANDIDATE WAS SOMEONE COMING OUT OF BUSINESS SCHOOL WHO HAD THREE OR FOUR YEARS OF FINANCIAL SERVICES EXPERIENCE MR. CERULLI RECALLS ALL THREE SUCCESSFUL CANDIDATES BROUGHT SUCH EXPERIENCE AT CERULLI ASSOCIATES PEOPLE LACK TITLES AND SEPARATE OFFICES AND EVERY CONSULTANT GETS THE SAME SALARY AND BONUS BASED ON PROFITABILITY MR. CERULLI SAYS THAT'S WHY HE SOUGHT HIGHLY MOTIVATED PEOPLE WHO MAY HAVE BEEN DISILLUSIONED BY THE POLITICS AND WASTE OFTEN FOUND IN A LARGER CORPORATE SETTING THAT DISILLUSIONMENT ALONG WITH THE DRASTIC REDUCTION IN JOB OPENINGS AT BIGGER COMPANIES HAS CHANGED MANY RECENT GRADUATES' NEGATIVE ATTITUDES ABOUT WORKING FOR SMALL BUSINESSES WHAT'S EXCITING ABOUT BEING WITH A SMALL COMPANY IS YOU'RE REALLY ESTABLISHING A PRECEDENT ALL THE RULES HAVEN'T BEEN WRITTEN YET SAYS TWENTY SIX YEAR OLD ELI NEUSNER MR. CERULLI HIRED MR. NEUSNER LAST MAY AFTER HE RECEIVED AN M. B. A. FROM BOSTON UNIVERSITY'S GRADUATE SCHOOL OF MANAGEMENT SCOTT BISHOP INTERVIEWED WITH TWENTY FIVE OR THIRTY FIVE MOSTLY LARGER COMPANIES BEFORE HE ACCEPTED SAPPHIRE ENGINEERING'S THIRTY THOUSAND DOLLAR A YEAR OFFER MOST OF HIS CLASSMATES WENT TO WORK FOR BIGGER CORPORATIONS BUT MR. BISHOP DOESN'T REGRET HIS DECISION HE NOTES I GOT THE FEELING THAT IF I CAME TO WORK HERE I WOULDN'T JUST BE SOME NUMBER STUCK IN A CUBICLE INTER REGIONAL FINANCIAL GROUP INCORPORATED MINNEAPOLIS JOHN C. APPEL FORTY FIVE YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE DAIN BOSWORTH INCORPORATED UNIT OF THIS BROKERAGE AND INVESTMENT BANKING CONCERN AS PRESIDENT MR. APPEL FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF BOTH THE PARENT AND DAIN BOSWORTH SUCCEEDS IRVING WEISER FORTY SIX WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE UNIT AS WELL AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PARENT COMPANY MR. APPEL CONTINUES AS AN EXECUTIVE VICE PRESIDENT OF INTER REGIONAL FINANCIAL THIS MANUFACTURER OF PERSONAL CARE PRODUCTS ELECTED FOUR DIRECTORS INCREASING BOARD MEMBERSHIP TO NINE JUDITH RODIN FORTY NINE YEARS OLD PROVOST OF YALE UNIVERSITY AND PRESIDENT DESIGNATE OF THE UNIVERSITY OF PENNSYLVANIA WALTER A. FORBES FIFTY ONE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF C. U. C. INTERNATIONAL JOHN J. LEE FIFTY SEVEN CHAIRMAN AND CHIEF EXECUTIVE OF HEXCEL CORPORATION AND CRAIG E. WEATHERUP FORTY EIGHT PRESIDENT AND CHIEF EXECUTIVE OF PEPSI COLA NORTH AMERICA FOOD LION INCORPORATED IS AGAIN THE SUBJECT OF ALLEGATIONS OF VIOLATING STATE FOOD AND SAFETY REGULATIONS BY A TRADE UNION GROUP CONSUMERS UNITED WITH EMPLOYEES A COALITION OF TRADE UNION AND RELIGIOUS ORGANIZATIONS SAID IN A REPORT THURSDAY THAT THE SALISBURY N. C. GROCERY CHAIN STOCKS OUT OF DATE INFANT FORMULA ON ITS SHELVES THE WASHINGTON D. C. UNION GROUP REVIEWED STATE INSPECTION RECORDS FROM NINETEEN EIGHTY NINE TO JANUARY NINETEEN NINETY FOUR AND SAID TWO HUNDRED TWELVE FOOD LION STORES IN GEORGIA NORTH CAROLINA TENNESSEE AND VIRGINIA HAD BEEN CITED FOR STOCKING INFANT FORMULA THAT WAS ON AVERAGE A MONTH OUT OF DATE C. U. E. SAID STATE AGENCIES PULLED THREE THOUSAND FIVE HUNDRED FORTY NINE CANS OFF STORE SHELVES DURING THAT PERIOD TOM E. SMITH FOOD LION'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE REPORT WAS PART OF THE UNITED FOOD AND COMMERCIAL WORKERS UNION'S QUOTE ONGOING CORPORATE CAMPAIGN TO DISCREDIT FOOD LION'S REPUTATION QUOTE FOOD LION SPOKESMAN MIKE MOZINGO SAID COMPANY POLICY IS TO REMOVE EXPIRED PRODUCTS FROM SHELVES PROMPTLY BUT HE CONCEDES WITH ONE THOUSAND ONE HUNDRED STORES IN FOURTEEN STATES YOU'LL OCCASIONALLY MISS A CAN OR TWO MR. SMITH SAID FOOD LION WOULD INVESTIGATE C. U. E.'S ALLEGATIONS IMMEDIATELY AND TAKE WHATEVER STEPS ARE NECESSARY TO CHANGE THE SITUATION A U. S. FOOD AND DRUG ADMINISTRATION SPOKESMAN SAID OUTDATED BABY FORMULA DOESN'T POSE A HEALTH HAZARD BUT THAT THE AGENCY WOULD LOOK INTO THE ALLEGATIONS A SPOKESWOMAN FOR THE VIRGINIA DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES SAID INSPECTORS ARE REQUIRED TO REMOVE AND DISCARD CONTAINERS OF OLD FORMULA WHEN THEY ARE FOUND DURING AN INSPECTION BUT SHE SAID THAT WHEN A SUPERMARKET IS GRADED FOR ITS SAFETY RECORD THE STATE CONSIDERS ITS OVERALL PERFORMANCE SHE NOTED THAT IN VIRGINIA FOOD LION'S OVERALL COMPLIANCE RATE WITH STATE INSPECTION REQUIREMENTS IS AMONG THE HIGHEST IN THE STATE SINCE NOVEMBER NINETEEN NINETY TWO FOOD LION A UNIT OF DELHAIZE LE LION S. A. OF BELGIUM HAS BEEN DOGGED BY ALLEGATIONS THAT ITS STORES AREN'T SANITARY THE CONTROVERSY BEGAN AFTER PRIME TIME LIVE AN A. B. C. NEWSMAGAZINE CLAIMED FOOD LION MISLED SHOPPERS ABOUT THE FRESHNESS OF ITS MEAT AND FISH AT THE TIME FOOD LION DENIED THE ALLEGATIONS AND SAID THE UFCW WAS BEHIND THE REPORT JAMES N. HOWELL FIFTY TWO YEARS OLD RESIGNED QUOTE EFFECTIVE IMMEDIATELY QUOTE FROM HIS POST AS SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS STEELMAKER THE COMPANY SAID MR. HOWELL RESIGNED TO PURSUE OTHER CAREER INTERESTS AND WOULD NOT ELABORATE FURTHER NO SUCCESSOR HAS BEEN NAMED AND THOSE PEOPLE REPORTING TO MR. HOWELL WILL TEMPORARILY REPORT TO RONALD H. DOERR PRESIDENT AND CHIEF EXECUTIVE OFFICER KELLEY OIL CORPORATION HOUSTON THE MANAGING GENERAL PARTNER OF KELLEY PARTNERS NINETEEN NINETY FOUR DEVELOPMENT DRILLING PROGRAM A TEXAS LIMITED PARTNERSHIP SAID THE REGISTRATION STATEMENT FOR TWENTY MILLION EIGHT HUNDRED SIXTY FOUR THOUSAND FOUR HUNDRED FOURTEEN UNITS OF LIMITED AND GENERAL PARTNER INTERESTS IN THE PARTNERSHIP WAS DECLARED EFFECTIVE BY THE SECURITIES AND EXCHANGE COMMISSION KELLEY OIL SAID THE UNITS BEING OFFERED AT THREE DOLLARS EACH WILL ONLY BE OFFERED TO DEPOSITARY UNITHOLDERS OF KELLEY OIL AND GAS PARTNERS LIMITED AS OF DECEMBER THIRTY FIRST THE OFFERING AMOUNT OF SIXTY TWO MILLION FIVE HUNDRED NINETY THREE THOUSAND TWO HUNDRED FORTY TWO DOLLARS WILL BE COMBINED WITH THE GENERAL PARTNERS' CONTRIBUTIONS OF TWO MILLION FIVE HUNDRED EIGHTY THOUSAND EIGHT HUNDRED NINETY SIX DOLLARS FOR A TOTAL OF SIXTY FIVE MILLION ONE HUNDRED SEVENTY FOUR THOUSAND ONE HUNDRED THIRTY EIGHT DOLLARS THE OFFERING TO RECORD UNITHOLDERS WILL END FEBRUARY TWENTY EIGHTH AT WHICH TIME KELLEY OIL CORPORATION WILL SUBSCRIBE FOR ALL UNITS NOT SUBSCRIBED BY OTHER UNITHOLDERS TUCKER ANTHONY INCORPORATED HAS BEEN NAMED AS SELECTED AGENT ALONG WITH VARIOUS OTHER SELLING AGENTS FOR THE OFFERING KELLEY OIL SAID THE PARTNERSHIP WAS FORMED TO CONDUCT DEVELOPMENT DRILLING ACTIVITIES ON PROPERTIES OF KELLEY PARTNERS SITUATED PRIMARILY IN LOUISIANA SPECULATION OVER WHEN THE FEDERAL RESERVE IS GOING TO TIGHTEN MONETARY POLICY BY RAISING SHORT TERM INTEREST RATES SENT A SHUDDER THROUGH ALL THE MAJOR BOND MARKETS MOST AFFECTED BY THE SKITTISHNESS WERE SHORT TERM U. S. INTEREST RATES WHICH SOARED THE BOND EQUIVALENT YIELD OF THE THREE MONTH TREASURY BILL FOR EXAMPLE ROSE ZERO POINT ZERO SEVEN PERCENTAGE POINT TO THREE POINT ONE NINE PERCENT THE HIGHEST SINCE THE END OF NOVEMBER THE YIELD OF OTHER SHORT TERM TREASURY SECURITIES ALSO ROSE SHARPLY MEANWHILE THE YIELD OF THE BENCHMARK THIRTY YEAR BOND ROSE TO SIX POINT THREE ONE PERCENT FROM SIX POINT TWO EIGHT PERCENT ON WEDNESDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS YIELD DROPPED MORE THAN THREE EIGHTHS POINT OR MORE THAN THREE DOLLARS AND SEVENTY FIVE CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY NINE AND FOUR THIRTY SECONDS WITH MANY RECENT REPORTS SUGGESTING THAT THE U. S. ECONOMY IS GAINING STRENGTH TALK OF WHEN THE FED WOULD RAISE INTEREST RATES HAS BEEN A POPULAR SPORT IN RECENT WEEKS THAT'S BECAUSE IT IS WIDELY BELIEVED THE FED WILL WANT TO MAKE A PRE EMPTIVE STRIKE AGAINST INFLATIONARY PRESSURES CREATED BY A GROWING ECONOMY BY RAISING SHORT TERM INTEREST RATES BEFORE RISING PRICES BECOME A PROBLEM THIS WEEK SUCH SPECULATION HAS GAINED MORE ATTENTION ON MONDAY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SPOKE BEFORE THE JOINT ECONOMIC COMMITTEE OF CONGRESS AND SAID THE FEDERAL RESERVE BOARD WOULD BOOST SHORT TERM RATES QUOTE AT SOME TIME QUOTE THOUGH HE DIDN'T SAY WHEN YESTERDAY'S JUMP IN YIELDS WAS SPARKED BY THE FED'S FAILURE TO INTERVENE IN THE MARKETS AS WAS EXPECTED EARLY YESTERDAY THE FEDERAL FUNDS RATE THE RATE AT WHICH BANKS LEND EACH OTHER MONEY WAS TRADING AT ONE EIGHTH PERCENTAGE POINT ABOVE ITS THREE PERCENT TARGET ANALYSTS HAD EXPECTED THE FED WOULD CORRECT THIS BY MAKING A ROUTINE TECHNICAL ADDITION OF RESERVES TO THE BANKING SYSTEM THE FED CONTROLS SHORTTERM RATES BY MANAGING THE LEVEL OF RESERVES IN THE SYSTEM WHEN THE FED'S NEW YORK OPEN MARKET DESK FAILED TO ADD RESERVES DURING ITS USUAL INTERVENTION PERIOD TRADERS SURMISED THE DESK WAS WILLING TO LET THE FED FUNDS RATE TRADE ABOVE ITS TARGET MANY ECONOMISTS BELIEVE THE FED'S NEXT MOVE WILL BE TO TIGHTEN POLICY BY RAISING THE TARGET TO THREE POINT TWO FIVE PERCENT BUT THERE IS LITTLE CONSENSUS ON WHEN THAT WILL OCCUR ECONOMISTS WERE GENERALLY LESS WILLING TO SEE A FED TIGHTENING IN THE INACTION THAN TRADERS BY FAILING TO ADD RESERVES THE FED WAS TIPPING ITS HAND THAT IT PLANS TO TIGHTEN MONETARY POLICY SAID DAVID JONES ECONOMIST AT AUBREY LANSTON MR. JONES WAS ONE OF FEW ECONOMISTS WHO SAID THE INACTION WAS A CLEAR SIGN THOUGH SOME DID SAY THE MOVE WAS SUSPICIOUS THEY TIPPED THEIR HAND TODAY WITH AN UNMISTAKABLE SIGNAL THAT THEY WERE IN THE PROCESS OF MOVING TO A TIGHTER POLICY STANCE THAT WILL OFFICIALLY BE SIGNALED TOMORROW MR. JONES SAID OTHER ECONOMISTS SAID IT WOULD MAKE NO SENSE FOR THE FEDERAL RESERVE TO ACT ON THE FIRST DAY OF ITS TWO DAY FEDERAL OPEN MARKET COMMITTEE POLICY MAKING MEETING WHICH STARTED YESTERDAY AND BEFORE JANUARY EMPLOYMENT DATA WHICH WILL BE REPORTED TODAY I DON'T THINK TODAY'S LACK OF ACTION INDICATES ANYTHING SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES IN HIS VIEW IF THE FEDERAL RESERVE WAS GOING TO TIGHTEN IT WOULD HAVE GIVEN THE MARKET A CLEAR SIGNAL PERHAPS BY DRAINING RESERVES FROM THE SYSTEM ON THE FIRST DAY OF THE FED'S FEDERAL OPEN MARKET COMMITTEE MEETING THE MEMBERS TYPICALLY DISCUSS LONG TERM MONETARY TARGETS AND LONGER TERM ECONOMIC TARGETS SAID MR. JONES ON THE SECOND DAY THE MEMBERS USUALLY SET THE FED'S STANCE TOWARD MONETARY POLICY HE EXPLAINED ACCORDING TO LOUIS CRANDALL CHIEF ECONOMIST AT R. H. WRIGHTSON AND ASSOCIATES A FIRM THAT PROVIDES ANALYSIS OF TREASURY ACTIVITIES THE FED'S DECISION NOT TO ADD RESERVES WHEN THE FED FUNDS RATE WAS ONE EIGHTH PERCENTAGE POINT ABOVE ITS TARGET WAS UNUSUAL HE SAID THAT IT WAS COMMON FOR THE FED TO IGNORE A ONE SIXTEENTH PERCENTAGE POINT GAP BUT NOT A ONE EIGHTH POINT GAP THE FED LAST RAISED SHORT TERM INTEREST RATES NEARLY FIVE YEARS AGO SINCE THEN THE FED HAS BEEN CUTTING INTEREST RATES IT'S BEEN OVER A YEAR SINCE THE LAST CUT WHICH OCCURRED IN DECEMBER NINETEEN NINETY TWO ACCORDING TO MR. CRANDALL THE FED DIDN'T HAVE TO ADD MUCH IN RESERVES PERHAPS HE SUGGESTED THE FED WAS SAVING ITS SHOTS FOR WHEN IT NEEDS THEM IN OTHER WORDS THERE WAS THE RISK THAT THE FED COULD HAVE OVERDONE IT AND BEEN FACED WITH THE NEED TO REDUCE RESERVES TO MAKE UP FOR IT HE SAID QUOTE THAT WOULD HAVE BEEN EVEN MORE MISLEADING QUOTE SAID MR. CRANDALL AND COULD HAVE HAD A QUOTE DISRUPTIVE QUOTE EFFECT ON THE MARKET FOR HIS PART MR. CRANDALL SAID HE WAS SURPRISED BY HOW THE MARKET REACTED TO THE FED'S DECISION AGAINST ADDING RESERVES THE NEED TO ADD SOME RESERVES WASN'T SUCH AN OBVIOUS THING THAT THEY HAD TO COME IN AND DO IT TODAY HE SAID MR. FINE SAID THAT WHEN THE FED MOVES TO TIGHTEN IT WILL MAKE ITS INTENTIONS MUCH MORE OBVIOUS THIS FED UNDER ALAN GREENSPAN HAS USUALLY BEEN RATHER DEFINITIVE IN NATURE HE SAID IF THEY WANT TO TIGHTEN THEY WILL COME IN AND HIT YOU OVER THE HEAD MR. FINE SAID THAT WHEN THE FED DOES TIGHTEN IT WILL MOVE THE FEDERAL FUNDS RATE UP ONE HALF PERCENTAGE POINT NOT JUST ONE QUARTER PERCENTAGE POINT TO MAKE IT VERY CLEAR TO THE BOND MARKETS THAT A SHIFT HAS OCCURRED SOME ECONOMISTS SPECULATED THAT BY REFRAINING FROM ACTION THIS SESSION THE FED HAS A CLEARER HAND TO STATE POLICY ONE WAY OR THE OTHER TODAY AFTER THE JANUARY EMPLOYMENT REPORT IS RELEASED THE FED FUNDS RATE WAS AT THREE POINT OH SIX TWO FIVE PERCENT LATE YESTERDAY IN THE FLURRY OF THURSDAY'S ACTIVITY SOME ECONOMISTS AND TRADERS WERE REMINDING PARTICIPANTS OF WHAT SOME REFERRED TO AS THE THANKSGIVING DAY MASSACRE OR A DAY DURING THANKSGIVING WEEK NINETEEN EIGHTY NINE WHEN TRADERS MISINTERPRETED A FED DECISION TO ADD RESERVES AS A SIGN THAT IT WAS CUTTING THE FED FUNDS RATE IN WHEN ISSUED TRADING THE THREE YEAR NOTE TO BE SOLD BY THE GOVERNMENT NEXT WEEK WAS YIELDING FOUR POINT SIX FIVE PERCENT THE TEN YEAR NOTE WAS YIELDING FIVE POINT SEVEN SIX PERCENT AND THE THIRTY YEAR BOND WAS YIELDING SIX POINT THREE TWO PERCENT LATE YESTERDAY THE FED REPORTED THAT ITS WIDELY WATCHED M. TWO A MEASURE OF MONEY SUPPLY DROPPED ONE BILLION DOLLARS FOR THE WEEK ENDED JANUARY TWENTY FOURTH THAT PUTS THE M. TWO GROWTH RATE AT TWO POINT FOUR PERCENT COMPARED WITH THE FOURTHQUARTER BASE OF NINETEEN NINETY THREE WHICH IS WITHIN THE FED'S TARGET RANGE OF ONE PERCENT TO FIVE PERCENT M. TWO INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN ONE HUNDRED THOUSAND DOLLARS 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 THREE HUNDRED SIXTY DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A THREE HUNDRED SIXTY FIVE DAY YEAR THE BILLS ARE DATED FEBRUARY TENTH AND MATURE FEBRUARY NINTH NINETEEN NINETY FIVE CORPORATE BOND MARKET FOCUSED ON DOMESTIC ISSUES FOR THE FIRST TIME THIS WEEK AMID NEW ISSUES FROM APPLE COMPUTER INCORPORATED CONNECTICUT LIGHT AND POWER COMPANY HERTZ CORPORATION AND SUNTRUST BANKS INCORPORATED IN TRADING MEANWHILE JUNK BONDS WERE ENDING UNCHANGED HOWEVER THE SECTOR SAW ACTIVE DEALINGS AND PRICES HAD BEEN UP ONE QUARTER TO ONE HALF POINT EARLIER IN THE DAY IN CONTRAST ACTIVITY WAS LIGHT IN THE INVESTMENT GRADE AREA AS PRICES EASED AND SPREADS OR THE MARGIN BETWEEN YIELDS OF CORPORATE AND TREASURY BONDS NARROWED SLIGHTLY WEDNESDAY'S GLOBAL NOTE OFFERING BY THE PEOPLE'S REPUBLIC OF CHINA TRADED DOWN IN THE SECONDARY MARKET CHINA'S SIX POINT FIVE PERCENT COUPON NOTES MATURING IN TWO THOUSAND FOUR DROPPED ZERO POINT FIVE TWO FIVE POINT OR FIVE DOLLARS AND TWENTY FIVE CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY EIGHT POINT EIGHT NINE ONE THE YIELD ROSE TO SIX POINT SIX FIVE THREE PERCENT FROM SIX POINT FIVE EIGHT TWO PERCENT GLOBAL NOTES ARE SECURITIES DESIGNED TO BE EASILY BOUGHT AND SOLD IN THE WORLD'S MAJOR MARKETS PROCEEDS FROM THE GLOBAL NOTES WILL BE USED TO FUND PROJECT FINANCE IN AREAS SUCH AS ENERGY TRANSPORTATION AND COMMUNICATION JIN RENQING CHINA'S VICE MINISTER OF FINANCE SAID THE OFFICIAL SPOKE AT A NEWS CONFERENCE IN NEW YORK AT MERRILL LYNCH WHICH WAS LEAD UNDERWRITER FOR THE DEBT OFFERING ALSO IN THE NEWS CONFERENCE WINTHROP SMITH JUNIOR EXECUTIVE VICE PRESIDENT OF MERRILL LYNCH AND CHAIRMAN OF MERRILL LYNCH INTERNATIONAL SAID THE GLOBAL OFFERING ATTRACTED MORE THAN ONE HUNDRED WORLD WIDE INSTITUTIONS IN ADDITION TO INDIVIDUAL INVESTORS OF MERRILL'S SALES MR. SMITH SAID SIXTY PERCENT OF THE BONDS WAS SOLD IN THE U. S. TWENTY PERCENT IN EUROPE AND TWENTY PERCENT IN ASIA IN THE U. S. APPLE COMPUTER SOLD THREE HUNDRED MILLION DOLLARS OF TEN YEAR SIX POINT FIVE PERCENT COUPON NOTES PRICED AT NINETY NINE POINT NINE TWO FIVE TO YIELD SIX POINT FIVE ONE PERCENT RATED B. A A ONE BY MOODY'S INVESTORS SERVICE AND SINGLE A MINUS BY STANDARD AND POOR'S THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS MUNICIPAL BONDS WERE CAUGHT UP IN THE SALES THAT UNDERCUT TREASURYS AND THEY WERE GENERALLY ONE EIGHTH TO ONE HALF POINT LOWER AT THE CLOSE IN THE NEW OFFERING SECTOR MUNI ISSUERS SOLD MORE THAN NINE HUNDRED MILLION DOLLARS OF DEBT DESPITE THE PRICE DECLINE THAT DROVE UP YIELDS THIS SESSION'S ISSUES INCLUDED THE MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY'S THREE HUNDRED THIRTY TWO MILLION DOLLARS NINETEEN NINETY FOUR SERIES A AND B. POWER SUPPLY SYSTEM BONDS THEY WERE PRICED BY A BEAR STEARNS GROUP AND GIVEN YIELDS THAT RANGE FROM TWO POINT FOUR PERCENT IN JULY NINETEEN NINETY FOUR TO FIVE POINT TWO EIGHT PERCENT IN TWO THOUSAND SEVENTEEN THERE WASN'T A REPRICING DESPITE THE MARKET'S CONDITION THE NEW YORK TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY'S NEWLY FREED TO TRADE FIVE POINT OH OH PERCENT BONDS DUE TWO THOUSAND TWENTY FOUR WERE QUOTED AT NINETY FIVE AND THREE EIGHTHS IN LATE TRADING YIELDING FIVE POINT THREE PERCENT WHEN THOSE BONDS INITIALLY CAME TO THE MARKET TUESDAY THEY WERE PRICED AT NINETY FIVE AND THREE QUARTERS AND HAD A FIVE POINT TWO EIGHT PERCENT YIELD MUNIS FELL WITH TREASURYS THIS SESSION AMID CONCERNS ABOUT FED TIGHTENING MORTGAGE SECURITIES PRICES ENDED DOWN AS MUCH AS NINE THIRTY SECONDS BUT THEY OUTPERFORMED TREASURYS PROMPTING SOME DOUBT ABOUT THE EXTENT OF DEALER DEMAND FOR COLLATERAL TO CREATE REMICS THE REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEAL FLOW HASN'T YET BEEN CHOKED OFF HOWEVER AS ONE SIZABLE NEW ISSUE AND INCREASES OF TWO OFFERINGS OUTSTANDING WERE ANNOUNCED FOR A TOTAL OF TWO POINT SEVEN BILLION DOLLARS NEW SECURITIES BUT THE LONGER MORTGAGE SECURITIES OUTPACE TREASURYS THE MORE EXPENSIVE MORTGAGE SECURITIES LOOK RELATIVE TO THEIR GOVERNMENT SECURITIES COUNTERPARTS AND WITH THE TREASURY ABOUT TO SELL ITS QUARTERLY REFUNDING PACKAGE NEXT WEEK FOR A TOTAL OF FORTY BILLION DOLLARS NEW SECURITIES CHANCES ARE THAT THE MORTGAGE MARKET COULD REMAIN RELATIVELY BUOYANT PRIMARY REMIC MARKET ACTIVITY WEDNESDAY WAS HIGHLIGHTED BY A ONE POINT FIVE FOUR NINE BILLION DOLLAR FEDERAL HOME LOAN MORTGAGE CORPORATION SERIES GOLD ONE THOUSAND SIX HUNDRED NINETY FIVE DEAL WHICH WAS COLLATERALIZED WITH THE AGENCY'S GOLD THIRTY YEAR SEVENS AND UNDERWRITTEN BY KIDDER PEABODY FREDDIE MAC'S SERIES GOLD ONE THOUSAND SIX HUNDRED EIGHTY SIX BACKED BY GOLD THIRTY YEAR SEVEN POINT FIVES WAS BOOSTED TO ONE POINT THREE BILLION DOLLARS FROM THE ORIGINAL THREE HUNDRED MILLION DOLLAR AMOUNT BY LEHMAN BROTHERS AND THE FEDERAL NATIONAL MORTGAGE ASSOCIATION'S SERIES NINETEEN NINETY FOUR TO TWENTY TWO BACKED BY SEVEN POINT FIVE PERCENT BACKED STRIPS TRUST TWO HUNDRED FIFTY FOUR WAS INCREASED TO THREE HUNDRED THIRTY FIVE MILLION DOLLARS FROM TWO HUNDRED MILLION DOLLARS BY GREENWICH CAPITAL MARKETS THERE WAS LITTLE NET MARKET MOVEMENT AFTER NEWS OF A FIFTY NINE THOUSAND JOBLESS CLAIMS RISE A ONE POINT TWO PERCENT DECEMBER FACTORY ORDERS GAIN OR THE FLAT MORTGAGE BANKERS ASSOCIATION'S WEEKLY REFINANCING INDEX THE BUNDESBANK CHILLED HOPES FOR LOWER GERMAN INTEREST RATES AT LEAST TEMPORARILY BY ANNOUNCING AN UNEXPECTEDLY SHARP JUMP IN DECEMBER MONEY SUPPLY WHICH IT TRACED TO SPECIAL FACTORS THE BUNDESBANK SAID ITS MEASURE OF BROADLY BASED M. THREE MONEY SUPPLY ROSE AT AN ANNUALIZED AND SEASONALLY ADJUSTED EIGHT POINT ONE PERCENT RATE IN DECEMBER UP FROM A PACE OF SEVEN POINT TWO PERCENT IN NOVEMBER AND MOVING FURTHER AWAY FROM ITS NINETEEN NINETY THREE TARGET CORRIDOR OF FOUR POINT FIVE PERCENT TO SIX POINT FIVE PERCENT FOR THE FOURTH QUARTER AVERAGE M. THREE GROWTH WAS UP SEVEN POINT FIVE PERCENT FROM THE YEAR EARLIER PERIOD ANALYSTS SUGGESTED THAT THE LATEST SURGE IN MONEY SUPPLY WHICH IS AN EARLY INDICATOR FOR FUTURE INFLATION TRENDS COULD OFFSET THE CHANCE FOR LOWER INTEREST RATES CREATED BY A DECELERATION IN WESTERN GERMAN INFLATION IN JANUARY TO THREE POINT FOUR PERCENT FROM THREE POINT SEVEN PERCENT IN DECEMBER THE GERMAN CENTRAL BANK LAST LOWERED OFFICIAL INTEREST RATES IN OCTOBER THE U. S. RECENTLY INCREASED PRESSURE ON THE BUNDESBANK TO RESUME ITS GRADUAL REDUCTION IN INTEREST RATES TO HELP PULL EUROPE'S LARGEST ECONOMY OUT OF RECESSION BUNDESBANK PRESIDENT HANS TIETMEYER HAS CLAIMED THAT THE BUNDESBANK IS WILLING TO RESUME LOOSENING CREDIT REINS AGAIN GIVEN MORE SIGNS OF EASING PRICE PRESSURES IN GERMANY'S ECONOMY PRIVATE SECTOR ECONOMISTS BELIEVE THAT SUCH INDICATIONS COULD COME BEFORE THE NEXT BUNDESBANK POLICY MEETING SCHEDULED FOR FEBRUARY SEVENTEENTH BY WHICH TIME THE BUNDESBANK COULD HAVE A VIEW OF HOW M. THREE PERFORMED IN JANUARY BUT GERMAN OFFICIALS SAY THEY NEED CLEAR EVIDENCE THAT INFLATION IS UNDER CONTROL POINTING TO SPECIAL FACTORS THAT INFLATED MONEY SUPPLY GROWTH IN DECEMBER SOME ECONOMISTS EXPECT THAT M. THREE GROWTH IN JANUARY COULD COME IN MUCH LOWER EVEN BELOW THE NEW NINETEEN NINETY FOUR TARGET RANGE OF FOUR PERCENT TO SIX PERCENT BUT OTHER OBSERVERS RECALL THAT A JANUARY M. THREE GROWTH FIGURE IS RARELY TAKEN AS A GOOD INDICATION BECAUSE THE ANNUALIZED RESULT IS CALCULATED ON THE BASIS OF ONLY ONE MONTH THE DECEMBER MONEY SUPPLY WAS PUSHED UP BY GERMAN COMPANIES THAT REPATRIATED AN ESTIMATED FIFTEEN BILLION MARKS EIGHT POINT SIX SIX BILLION DOLLARS IN LIQUID ASSETS HELD ABROAD FOR THE PURPOSE OF QUOTE WINDOW DRESSING QUOTE YEAR END ACCOUNTS IN ADDITION BANK LENDING TO COMPANIES AND PRIVATE INDIVIDUALS ROSE FORTY SIX PERCENT TO FIFTY EIGHT POINT FOUR BILLION MARKS FROM FORTY BILLION MARKS IN DECEMBER NINETEEN NINETY TWO AS MANY PEOPLE TOOK ADVANTAGE OF A NINETEEN NINETY THREE TAX BREAK ON HOME PURCHASES ALSO DRIVING UP MONEY AGGREGATES WERE TAX CHANGES AFFECTING FOREIGN INVESTMENT FUNDS WHICH CAUSED HEAVY SALES OF SUCH HOLDINGS UP TO THE END OF DECEMBER THE LAZARD INVESTMENT BANKING GROUP LED EUROPEAN CROSS BORDER MERGERS AND ACQUISITIONS DEALS IN NINETEEN NINETY THREE AHEAD OF DEUTSCHE BANK A. G.'S MORGAN GRENFELL UNIT AND GOLDMAN SACHS AND COMPANY IN SECOND AND THIRD PLACE RESPECTIVELY WITH TWENTY TWO TRANSACTIONS TOTALING FOUR POINT EIGHT BILLION POUNDS SEVEN POINT TWO BILLION DOLLARS THE COMBINATION FORMED BY THE THREE LAZARD HOUSES IN LONDON PARIS AND NEW YORK MOVED UP FROM THIRD PLACE IN NINETEEN NINETY TWO ACCORDING TO ACQUISITIONS MONTHLY A TRADE PUBLICATION AMONG THE MAJOR DEALS LAZARD FRERES ET COMPANY OF PARIS ADVISED UNION DES ASSURANCES DE PARIS ON ITS ONE POINT EIGHT BILLION TWO STEP BID FOR SEVENTY THREE POINT SIX PERCENT OF VINCI A DUTCH INSURANCE AND FINANCIAL SERVICES GROUP THROUGH THIS DEAL U. A. P. TOOK CONTROL OF COLONIA KONZERN A. G. A GERMAN INSURANCE COMPANY IN A CROSS SHAREHOLDER ARRANGEMENT WITH SUEZ ET COMPANY OF FRANCE IN BRITAIN MEANWHILE LAZARD BROTHERS AND COMPANY ADVISED U. K. RETAILER KINGFISHER P. L. C. ON ITS ONE BILLION POUND ACQUISITION OF FINANCIERE DARTY S. A. OF FRANCE MORGAN GRENFELL CAME SECOND IN THE MAGAZINE'S RATING WITH FORTY FOUR COMPLETED TRANSACTIONS THE HIGHEST NUMBER OF DEALS ACHIEVED BY ANY ADVISER IN THE TABLE TOTALING THREE POINT FIVE SIX BILLION GOLDMAN SACHS RANKED THIRD WITH THIRTY TWO CROSS BORDER DEALS TOTALING THREE POINT FIVE FIVE BILLION S. G. WARBURG GROUP P. L. C. WHICH LED THE MAGAZINE'S NINETEEN NINETY TWO RANKING FOR CROSS BORDER DEALS FIGURED SIXTH IN NINETEEN NINETY THREE WITH TWENTY ONE DEALS VALUED AT TWO POINT TWO BILLION ACCORDING TO ANOTHER RECENT RANKING PUBLISHED BY MERGERS AND ACQUISITIONS INTERNATIONAL HOWEVER WARBURG WAS TOP ADVISER FOR THE SECOND YEAR RUNNING IN ALL EUROPEAN DEALS INCLUDING DOMESTIC DEALS ROBERT G. BRITZ FORTY THREE YEARS OLD WAS NAMED SENIOR VICE PRESIDENT NEW LISTINGS AND CORPORATE LIAISON A NEW POSITION MR. BRITZ WAS FORMERLY A VICE PRESIDENT OF THE DIVISION ALSO FIVE MANAGING DIRECTORS WERE NAMED VICE PRESIDENTS ROBERT A. MARCHMAN THIRTY SIX ENFORCEMENT BRIAN MCNAMARA FORTY NINE MARKET SURVEILLANCE REGULATORY DEVELOPMENT RICHARD A. PECHEUR FORTY NINE MEMBER FIRM AND INSTITUTIONAL MARKETING AND SALES L. PAIGE THOMPSON FORTY SIX DOMESTIC LISTINGS AND THOMAS E. VEIT FORTY TWO LISTED COMPANY MARKETING ALL VICE PRESIDENTIAL POSITIONS ARE NEW CONCERNS ABOUT RISING INTEREST RATES NUDGED STOCK PRICES LOWER BUT THE MARKET FINISHED ABOVE ITS WORST LEVELS OF THE DAY AFTER THE MARKET'S SHARP GAINS IN THE PAST SEVERAL WEEKS ANALYSTS SAID INVESTORS ARE BECOMING MORE CAUTIOUS MODERATE LOSSES IN BOND PRICES TRIGGERED PROFIT TAKING YESTERDAY THEY SAID THE TREASURY'S THIRTY YEAR BOND WAS DOWN MORE THAN THREE EIGHTHS POINT YESTERDAY TO YIELD SIX POINT THREE ONE PERCENT EARLIER IT WAS OFF MORE THAN ONE HALF POINT THE DOW JONES INDUSTRIAL AVERAGE WHICH RALLIED TO WITHIN THREE POINTS OF A RECORD WEDNESDAY FELL SEVEN POINT EIGHT EIGHT OR ZERO POINT TWO ZERO PERCENT TO THREE THOUSAND NINE HUNDRED SIXTY SEVEN POINT SIX SIX BROAD BASED INDEXES FELL ABOUT THE SAME THE INDUSTRIAL AVERAGE HAD SKIDDED TO A LOSS OF MORE THAN TWENTY FIVE POINTS EARLIER IN THE DAY BIG BOARD VOLUME TOPPED THE ACTIVE THREE HUNDRED MILLION SHARE LEVEL FOR THE EIGHTH STRAIGHT SESSION AT THREE HUNDRED EIGHTEEN MILLION THOUSAND SHARES COMPARED WITH THREE HUNDRED TWENTY EIGHT MILLION SEVEN HUNDRED SEVENTY THOUSAND WEDNESDAY DECLINING ISSUES LED ADVANCERS ONE THOUSAND ONE HUNDRED NINETY TO NINE HUNDRED EIGHTEEN THE AVERAGE PRICE PER SHARE FELL SEVEN CENTS THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX LOST ONE POINT TWO NINE OR ZERO POINT TWO SEVEN PERCENT TO FOUR HUNDRED EIGHTY POINT SEVEN ONE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL ZERO POINT FIVE THREE OR ZERO POINT TWO ZERO PERCENT TO TWO HUNDRED SIXTY SEVEN POINT ONE EIGHT AND THE DOW JONES EQUITY MARKET INDEX SLIPPED ONE POINT ONE ONE OR ZERO POINT TWO FOUR PERCENT TO FOUR HUNDRED FIFTY FIVE POINT ONE SIX ALL SET RECORDS WEDNESDAY THE NASDAQ COMPOSITE INDEX DROPPED ONE POINT SEVEN EIGHT OR ZERO POINT TWO TWO PERCENT TO SEVEN HUNDRED NINETY SEVEN POINT SEVEN NINE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL ZERO POINT SEVEN ONE OR ZERO POINT ONE FIVE PERCENT TO FOUR HUNDRED EIGHTY SEVEN POINT ONE EIGHT ENDING A STREAK OF THREE STRAIGHT RECORD HIGHS THE DOW JONES UTILITIES AVERAGE FELL TWICE AS FAR AS THE DOW INDUSTRIALS SLIDING ZERO POINT NINE TWO OR ZERO POINT FOUR ONE PERCENT TO TWO HUNDRED TWENTY FOUR POINT TWO THREE THE FOCUS ON INTEREST RATES LEFT FINANCIAL STOCKS LOWER CITICORP DROPPED ONE TO FORTY TWO AND ONE HALF CHASE MANHATTAN FELL THREE QUARTERS TO THIRTY FIVE AND ONE QUARTER AMERICAN INTERNATIONAL AN INSURER SKIDDED ONE AND THREE EIGHTHS TO EIGHTY NINE AND ONE HALF EQUITABLE COMPANIES FELL ONE AND ONE HALF TO TWENTY EIGHT AND PAINEWEBBER EASED FIVE EIGHTHS TO TWENTY SEVEN AND SEVEN EIGHTHS SHARES OF THE BIG THREE AUTO MAKERS ADVANCED AFTER THE RELEASE OF SURPRISINGLY STRONG SALES FIGURES U. S. AUTO SALES REACHED A SEVEN POINT TWO MILLION UNIT ANNUAL RATE IN JANUARY TOPPING THE SIX POINT SEVEN MILLION RATE ANALYSTS HAD EXPECTED GENERAL MOTORS GAINED ONE AND ONE HALF TO SIXTY THREE FORD MOTOR ROSE ONE AND FIVE EIGHTHS TO SIXTY NINE AND THREE EIGHTHS AND CHRYSLER ADDED ONE AND ONE QUARTER TO SIXTY TWO AND ONE HALF R. J. R. NABISCO CLIMBED ONE QUARTER TO SEVEN AND SEVEN EIGHTHS IN HEAVY TRADING AMID RUMORS THAT THE COMPANY PLANNED TO SPIN OFF ITS TOBACCO UNIT R. J. R. RESPONDING TO INQUIRIES FROM THE NEW YORK STOCK EXCHANGE SAID THAT IT KNOWS OF NO REASON FOR THE UNUSUAL ACTIVITY IN ITS STOCK YESTERDAY R. J. R. DECLINED TO COMMENT ON THE MARKET RUMORS THIS SPRING MARKS THE FIFTH ANNIVERSARY OF THE KOHLBERG KRAVIS ROBERTS AND COMPANY LED LEVERAGED BUYOUT OF R. J. R. MAKING K. K. R. ELIGIBLE FOR A TAX FREE SPINOFF ALSO IN MAY R. J. R. IS EXPECTED TO RETIRE MORE THAN TWO BILLION DOLLARS IN HIGH COUPON DEBT THAT CONTAINS RESTRICTIVE COVENANTS THAT MAKE A SEPARATION OF THE COMPANY DIFFICULT MAYTAG SLUMPED TWO AND ONE EIGHTH TO SEVENTEEN AND ONE QUARTER AFTER THE NEWTON IOWA HOME APPLIANCE MAKER REPORTED LOWER THAN EXPECTED FOURTH QUARTER EARNINGS IT HAD A PROFIT OF SIXTEEN CENTS A SHARE IN THE PERIOD UP FROM ELEVEN CENTS A YEAR EARLIER BUT BELOW THE TWENTY THREE CENT MEAN ESTIMATE OF ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM WHIRLPOOL JUMPED ONE AND ONE QUARTER TO SEVENTY TWO AND THREE EIGHTHS EXCLUDING CHARGES THE BENTON HARBOR MICHIGAN APPLIANCE MAKER'S NET INCOME CLIMBED TO ONE DOLLAR AND THIRTEEN CENTS A SHARE IN THE FOURTH QUARTER FROM ONE DOLLAR AND TWO CENTS A YEAR EARLIER MANY RETAILING STOCKS ROSE AFTER RELEASE OF JANUARY SALES DATA DAYTON HUDSON WHOSE SAME STORE SALES THOSE FROM LOCATIONS OPEN AT LEAST A YEAR ROSE TWO POINT NINE PERCENT ADDING SEVEN EIGHTHS TO SIXTY SEVEN AND THREE EIGHTHS GAP WHOSE SAME STORE SALES CLIMBED THREE PERCENT ADVANCED THREE EIGHTHS TO FORTY ONE AND FIVE EIGHTHS AND SEARS ROEBUCK WHOSE SAME STORE SALES JUMPED SEVEN POINT NINE PERCENT WAS UP ONE QUARTER TO FIFTY ONE AND ONE HALF WOOLWORTH HOWEVER SKIDDED ONE AND ONE QUARTER TO TWENTY FOUR AND FIVE EIGHTHS THE NEW YORK RETAILER ESTIMATED THAT ITS FOURTH QUARTER EARNINGS WERE QUOTE WELL BELOW QUOTE THEIR YEAR EARLIER LEVEL ITS DOMESTIC SAME STORE SALES ROSE TWO POINT TWO PERCENT IN JANUARY TOTAL SALES FOR THE MONTH WERE OFF SEVEN POINT TWO PERCENT CHIRON NASDAQ DECLINED TWO AND ONE HALF TO NINETY AND ONE QUARTER AFTER GOLDMAN SACHS AND COMPANY ANALYST MAYKIN HO DOWNGRADED THE STOCK TO MODERATE OUTPERFORMER FROM RECOMMENDED FOR PURCHASE SHE CITED THE STOCK'S RECENT STRENGTH IT SET A FIFTY TWO WEEK HIGH MONDAY AS WELL AS CONCERNS ABOUT REIMBURSEMENT FOR THE EMERYVILLE CALIFORNIA COMPANY'S RECENTLY APPROVED MULTIPLE SCLEROSIS DRUG INTEL FELL TWO TO SIXTY THREE AND ONE QUARTER THE SANTA CLARA CALIFORNIA MICROCHIP COMPANY AGREED TO DISMISS SOME PATENT INFRINGEMENT CLAIMS AGAINST CYRIX TO PARTIALLY SETTLE LITIGATION BETWEEN THE COMPANIES SHARES OF CYRIX RICHARDSON TEXAS JUMPED THREE AND ONE EIGHTH TO TWENTY SIX AND ONE EIGHTH BOTH STOCKS TRADE ON NASDAQ TELEFONOS DE MEXICO'S AMERICAN DEPOSITARY RECEIPTS JUMPED ONE AND ONE QUARTER TO SEVENTY FIVE AND ONE QUARTER ON SPECULATION THAT THE MEXICAN TELEPHONE COMPANY WILL REPORT STRONG FOURTH QUARTER RESULTS U. S. SURGICAL TUMBLED TWO AND SEVEN EIGHTHS TO TWENTY EIGHT AND ONE QUARTER IN PART ON A CABLE TELEVISION REPORT THAT SAID MARKET SOURCES PREDICT SHARES OF THE NORWALK CONNECTICUT MEDICAL PRODUCTS COMPANY WILL SAG TO THE LOW TWENTIES LANCASTER COLONY NASDAQ DROPPED TWO TO FORTY THREE AND ONE QUARTER EVEN THOUGH THE COLUMBUS OHIO AUTOMOTIVE AND FOOD PRODUCTS MANUFACTURER REPORTED EARNINGS OF SIXTY EIGHT CENTS A SHARE FOR ITS FISCAL SECOND QUARTER ENDED DECEMBER THIRTY FIRST UP FROM FIFTY THREE CENTS A YEAR EARLIER FLUSH WITH CASH INSTITUTIONAL INVESTORS LIKELY TOOK ADVANTAGE OF THE DAY'S WEAKNESS TO BUY STOCKS LATE IN THE DAY SAID DAVID SHULMAN A MARKET STRATEGIST AT SALOMON BROTHERS PART OF THE CONCERN ABOUT RISING INTEREST RATES WAS LINKED TO THE SCHEDULED RELEASE TODAY OF LABOR DEPARTMENT DATA ON JANUARY EMPLOYMENT LEVELS SOME WORRY THE FEDERAL RESERVE WILL MOVE TO TIGHTEN CREDIT CONDITIONS IF THE REPORT SHOWS STRENGTH ECONOMISTS EXPECT AN INCREASE OF ABOUT ONE HUNDRED EIGHTY SIX THOUSAND IN NONFARM PAYROLLS JOSEPH MCALINDEN CHIEF INVESTMENT OFFICER AT DILLON READ AND COMPANY HOWEVER SAID A WEAKER THAN EXPECTED REPORT ON INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE YESTERDAY MIGHT MEAN TODAY'S DATA WILL COME IN AT THE LOW END OF EXPECTATIONS DEER PARK REFINING L. P. HOUSTON A JOINT VENTURE OF ROYAL DUTCH SLASH SHELL GROUP'S SHELL OIL COMPANY AND A PETROLEOS MEXICANOS S. A. UNIT SOLD FOUR HUNDRED MILLION DOLLARS IN NOTES IN A PRIVATE PLACEMENT TO INSTITUTIONAL BUYERS THE NOTES PRICED AT ZERO POINT SEVEN SEVEN POINT OVER THE TEN YEAR U. S. TREASURY NOTE CARRY A SIX POINT FOUR SEVEN PERCENT COUPON RATE AND HAVE A TEN YEAR WEIGHTED AVERAGE LIFE WITH A FIFTEEN YEAR FINAL MATURITY THE TRANSACTION CLOSED MONDAY PROCEEDS WILL BE USED TO PARTLY PAY FOR A ONE BILLION DOLLAR UPGRADE AT A REFINERY JOINTLY OWNED BY PEMEX AND SHELL AT SHELL'S DEER PARK TEXAS MANUFACTURING COMPLEX THE PROJECT IS EXPECTED TO BE COMPLETED IN NINETEEN NINETY FIVE THE CANADIAN GOVERNMENT SLOWED THE PACE OF ITS MONTHLY GOLD SALES IN JANUARY EASING PRESSURE ON GOLD PRICES THE FINANCE DEPARTMENT SAID YESTERDAY THAT THE GOVERNMENT SOLD ONE HUNDRED SEVENTEEN THOUSAND OUNCES OF GOLD FROM ITS OFFICIAL MONETARY RESERVES LAST MONTH DOWN FROM A NINETEEN NINETY THREE MONTHLY AVERAGE OF THREE HUNDRED TWENTY FOUR THOUSAND OUNCES CANADA IS THE ONLY COUNTRY THAT REGULARLY SELLS GOLD FROM ITS RESERVES GOLD ANALYSTS SAY OTHER COUNTRIES INCLUDING BELGIUM AND THE NETHERLANDS HAVE MADE SUBSTANTIAL GOLD SALES BUT NOT ON A REGULAR AND SUSTAINED BASIS LIKE CANADA THE CANADIAN GOVERNMENT RECEIVED AN AVERAGE OF THREE HUNDRED EIGHTY SEVEN DOLLARS AND EIGHTEEN CENTS AN OUNCE FOR THE GOLD IT SOLD IN JANUARY ON THE NEW YORK COMMODITY EXCHANGE GOLD WAS QUOTED LATE YESTERDAY FOR FEBRUARY DELIVERY AT THREE HUNDRED EIGHTY SEVEN DOLLARS AND THIRTY CENTS AN OUNCE THE JANUARY SALE REDUCED CANADA'S GOLD HOLDING TO FIVE POINT NINE MILLION OUNCES OR ABOUT A QUARTER OF THE GOLD STOCK IT HELD WHEN IT STARTED THE REGULAR SALES FOURTEEN YEARS AGO THE U. S. HOLDS TWO HUNDRED SIXTY ONE POINT EIGHT MILLION OUNCES GOLD PRODUCERS HAVE STRONGLY CRITICIZED THE CANADIAN SALES BUT CANADIAN OFFICIALS SAID CANADA'S GOLD SALES HAVE BEEN HIGHLY PROFITABLE AND HAVE INCREASED THE LIQUIDITY OF THE COUNTRY'S RESERVES AFTER SIGNING THE ISRAEL PALESTINE LIBERATION ORGANIZATION PEACE PACT THE P. L. O. SET UP AN OFFICIAL OFFICE TO PLAN FOR PALESTINIAN SELF RULE IN THIS WEST BANK CITY THE ACCORD HAS YET TO BE IMPLEMENTED BUT THE P. L. O. IS NOW DIVIDED INTO FOUR SEPARATE OFFICES EACH OFFICE SPORTS TWO PALESTINIAN FLAGS FLYING FROM THE WINDOW LIBERAL AMOUNTS OF GRAFFITI PROCLAIMING IN BOLD COLORS QUOTE P. L. O. OFFICE QUOTE AND WALL DECORATIONS CONSISTING PRIMARILY OF PICTURES OF P. L. O. CHAIRMAN YASSER ARAFAT DESPITE THE PHYSICAL SIMILARITIES EACH OFFICE MAINTAINS SEPARATE LEADERSHIP ACTIVISTS AND FINANCES EACH SPENDS MOST ITS TIME HELPING RESIDENTS RESOLVE SOCIAL PROBLEMS RANGING FROM TRAFFIC ACCIDENTS TO FAMILY DISPUTES MANY DISAPPOINTMENTS HAVE FOLLOWED THE SEPTEMBER THIRTEENTH SIGNING OF THE PEACE PACT THE ISRAELI PULLOUT FROM JERICHO AND THE GAZA STRIP WAS EXPECTED TO BEGIN DECEMBER THIRTEENTH AND IS STILL ON HOLD ISRAELI PRIME MINISTER SAYS THE TWO SIDES REMAIN WEEKS AWAY FROM AN AGREEMENT ON IMPLEMENTING THEIR ACCORD THE ISRAELI PRESS REPORTED THAT A SECRET POLL COMMISSIONED BY THE PRIME MINISTER'S OFFICE REVEALED THAT ISRAELI PUBLIC SUPPORT FOR THE ACCORD HAS DIPPED TO THIRTY FOUR PERCENT LESS THAN HALF OF WHAT IT WAS AT THE SIGNING MR. ARAFAT'S EL FATAH FACTION ALSO HAS BEEN ROCKED BY GROWING PUBLIC DISILLUSIONMENT WITH THE PEACE PACT IN ELECTIONS HELD LAST WEEKEND EL FATAH AND ITS ALLIES LOST THEIR MAJORITIES IN TWO PROFESSIONAL ASSOCIATIONS IN THE WEST BANK AND GAZA YET SOME PALESTINIAN ACTIVISTS SAY THE MOST DISTURBING RESULT OF THE LONG WAIT FOR THE START OF PALESTINIAN AUTONOMY HAS BEEN THE PROLIFERATION OF P. L. O. OFFICES THE PHENOMENON HAS REACHED SUCH LEVELS THAT LIKE RIVAL HAMBURGER CHAINS WHEN ONE P. L. O. OFFICE OPENS ITS DOORS TWO MORE SERVING MUCH THE SAME FARE ARE SURE TO FOLLOW NABLUS AND BETHLEHEM ALREADY BOAST THREE P. L. O. OFFICES EACH ONE WEST BANK VILLAGE HAS ONLY FIVE THOUSAND RESIDENTS AND FOUR P. L. O. OFFICES IN MANY CASES THE ACTIVISTS END UP FIGHTING NOT JUST AGAINST THE ISRAELI OCCUPATION BUT AMONG THEMSELVES THIS IS A VERY WEIRD PERIOD WAITING FOR ARAFAT TO ARRIVE WAS SUPPOSED TO LAST TWO MONTHS AND INSTEAD HAS ALREADY STRETCHED TO FIVE NO ONE IS GIVING ORDERS THERE IS NO CENTRAL AUTHORITY AND A LOT OF MONEY AND POWER IN THE FUTURE PALESTINIAN ENTITY IS AT STAKE WHEN YOU PUT ALL THIS TOGETHER IT IS INEVITABLE THAT THERE WILL BE A CERTAIN LEVEL OF ANARCHY SAYS BARRY RUBIN AUTHOR OF REVOLUTION UNTIL VICTORY THE POLITICS AND HISTORY OF THE P. L. O. ADNAN HAMMAD HEAD OF THE P. L. O. AFFILIATED PALESTINIAN DEMOCRATIC UNION LOOKS SHEEPISH WHEN HE IS ASKED WHY THE P. L. O. HAS FOUR OFFICES IN JERICHO WE DON'T NEED THAT MANY BUT IT WOULD BE IMPOSSIBLE TO GET US ALL IN ONE OFFICE HE SAYS EVERYONE IS ALWAYS QUARRELING DESPITE BEING MR. ARAFAT'S POLITICAL ALLY MR. HAMMAD IS OPENLY CRITICAL OF THE WAY THE P. L. O. HAS HANDLED THE NEGOTIATIONS WITH ISRAEL QUOTE WE SPEND MORE TIME ORGANIZING LECTURES IN JERICHO THAN THEY DO RUNNING THE PEACE TALKS QUOTE HE SAYS COMPLAINING THAT POLITICAL PROCRASTINATION MEANS THAT DELEGATES TO THE VARIOUS COMMITTEES ARE APPOINTED AT THE LAST MOMENT AND GIVEN INSUFFICIENT TIME TO PREPARE FOR JERICHO'S FOURTEEN THOUSAND RESIDENTS HAVING A WIDE SELECTION OF P. L. O. OFFICES FROM WHICH TO CHOOSE DOES HAVE CERTAIN ADVANTAGES PALESTINIAN ACTIVISTS SAY THE ISRAELI AUTHORITIES PREFER TO REFRAIN FROM INVOLVEMENT IN RESOLVING CIVIL DISPUTES LETTING THE POLITICAL GROUPS WORK IT OUT AMONG THEMSELVES RESIDENTS WITH A BEEF HAVE THEIR PICK OF P. L. O. OFFICES NATURALLY GRAVITATING TO THE ONE WHERE THEY ENJOY FAMILY OR SOCIAL CONNECTIONS OR WIELD POLITICAL CLOUT IF THEY ARE UNHAPPY WITH THE RESULT A DIFFERENT OFFICE CAN ALWAYS BE ENLISTED TO HELP OUT SAEB NADIF HEAD OF THE FATAH FACTION'S OFFICE DISPUTES THE IDEA THAT THE SPLINTERING OF THE P. L. O. ORGANIZATION INTO SEPARATE OFFICES IS A REFLECTION OF ANY SORT OF DISSATISFACTION WITH MR. ARAFAT'S LEADERSHIP HE PREFERS INSTEAD TO CALL IT A SIGN OF BURGEONING POLITICAL EXPRESSION BUT HE'S QUICK TO ADD THAT HIS OFFICE IS ACTUALLY THE ONLY ONE WHICH ENJOYS MR. ARAFAT'S APPROVAL WE ARE THE OFFICIAL P. L. O. OFFICE IN JERICHO HE DECLARES DOWN THE STREET AT THE PALESTINIAN DEMOCRATIC UNION MR. HAMMAD SITS BELOW A PORTRAIT OF MR. ARAFAT AND SHAKES HIS HEAD SLOWLY THE HINT OF A SMALL SMILE EMERGING WE DON'T CONSIDER THEM THE P. L. O. HE SNIFFS WE CONSIDER THEM FATAH SWING N. SLIDE CORPORATION JANESVILLE WISCONSIN RICHARD G. MUELLER FORTY FOUR YEARS OLD FORMERLY VICE PRESIDENT CONSUMER SALES MARKETING AND SERVICE AT TORO COMPANY AND PRESIDENT SLASH MANAGING DIRECTOR OF ITS WHEEL HORSE PRODUCTS UNIT WAS NAMED CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS MAKER OF WOODEN DO IT YOURSELF HOME PLAYGROUND EQUIPMENT AS CHIEF EXECUTIVE HE SUCCEEDS THOMAS R. BAER FORTY WHO CONTINUES AS CHAIRMAN THERE ARE NOW EIGHT BOARD MEMBERS USE OF STOCK OPTIONS CONTRACTS TO HEDGE STOCK PORTFOLIOS AND SPECULATE IN THE MARKET IS SURGING PUSHING OPTIONS TRADING TO LEVELS NOT SEEN SINCE THE NINETEEN EIGHTY SEVEN STOCK MARKET CRASH INVESTOR WARINESS AS THE DOW JONES INDUSTRIAL AVERAGE CONTINUES TO SET RECORDS HAS HELPED BRING NEW LIFE TO THIS PREVIOUSLY MORIBUND SECTOR OF THE U. S. FINANCIAL MARKETS AS HAS THE PROTRACTED TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INCORPORATED QUOTE THIS LONG DRAWN OUT TENDER OFFER HAS PROVEN TO BE VERY PROFITABLE FOR THE OPTIONS BUSINESS QUOTE SAID MICHAEL SCHWARTZ SENIOR VICE PRESIDENT AT OPPENHEIMER AND COMPANY BUT THERE ALSO HAS BEEN A STEADY TURNAROUND IN THE BUSINESS WITH AN INFLUX OF NEW USERS AND A CHANGE OF DIRECTION FROM INDEX OPTIONS TO EQUITY OPTIONS MANY PARTICIPANTS ATTENDING THE CHICAGO BOARD OPTIONS EXCHANGE CONVENTION HERE THIS WEEKEND ARE WONDERING HOW LONG THE NATION'S FOUR MAJOR OPTIONS EXCHANGES CAN MAINTAIN THEIR MOMENTUM BEFORE LAST MONTH WHEN THESE MARKETS POSTED THEIR HIGHEST DAILY AND MONTHLY VOLUME TOTALS IN MORE THAN FIVE YEARS THE CONSENSUS IN THE U. S. OPTIONS INDUSTRY WAS THAT IT HAD NEVER REALLY RECOVERED FROM THE CRASH THOUSANDS OF OVERLY AGGRESSIVE INVESTORS WHO USED OPTIONS CONTRACTS IN RISKY LEVERAGED TRADING STRATEGIES HAD BEEN DEVASTATED IN THE NINETEEN EIGHTY SEVEN CATACLYSM AND OPTIONS TRADING FELL SHARPLY IN THE YEARS THAT FOLLOWED NOW SOME IN THE OPTIONS INDUSTRY ARE PREDICTING THAT THE INDUSTRY'S FIVE YEAR SLUMP MAY BE FINISHED I THINK THE STRENGTH WILL CONTINUE SAID HENRY NOTHNAGEL SENIOR VICE PRESIDENT IN CHARGE OF DERIVATIVES AT KEMPER SECURITIES INCORPORATED IN NINETEEN NINETY FOUR I THINK WE'LL HAVE A VERY VOLATILE MARKET AND THAT LENDS ITSELF TO THE OPTIONS WHETHER YOU'RE A SPECULATOR OR A HEDGER OTHER OPTIONS SPECIALISTS CAUTION THAT THEIR INDUSTRY'S RECENT GAINS HAVEN'T MATCHED THE GROWTH OF TRADING IN THE RED HOT U. S. STOCK MARKET AND INDEED JANUARY'S AVERAGE DAILY VOLUME OF SIX HUNDRED NINETY EIGHT THOUSAND EIGHT HUNDRED SEVENTY TWO OPTIONS CONTRACTS WAS DWARFED BY STOCK TRADING VOLUME OF ROUGHLY FOUR HUNDRED MILLION SHARES A DAY BEFORE THE CRASH SKEPTICS SAID OPTIONS VOLUME ACCOUNTED FOR A BIGGER PERCENTAGE OF STOCK TRADING VOLUME YET LAST MONTH'S TOTAL VOLUME OF FOURTEEN POINT SEVEN MILLION OPTIONS CONTRACTS REPRESENTED THE BEST JANUARY THAT U. S. OPTIONS MARKETS HAVE EVER HAD AND THE HIGHEST TOTAL FOR ANY MONTH SINCE OCTOBER NINETEEN EIGHTY SEVEN OPTIONS DON'T EXIST IN A VACUUM SAID PAUL STEVENS PRESIDENT OF THE OPTIONS INDUSTRY COUNCIL A TRADE GROUP THE ECONOMY SEEMS TO BE IMPROVING THE STOCK MARKET WON'T QUIT AND OPTIONS ARE PARTICIPATING IN THAT BOOM STILL INVESTOR VOLUME SEEMS TO BE UP MORE THAN TOTAL VOLUME THAT SHOWS PEOPLE ARE USING OPTIONS IN INTELLIGENT WAYS TO HEDGE EQUITY POSITIONS AND DO MORE LONG TERM THINGS QUOTE IN PARTICULAR INVESTORS CAN USE OPTIONS TO LAY OFF THE RISK OF HEAVY LOSSES IN THE EVENT OF A MAJOR STOCK MARKET CORRECTION THE MARKET IS AT RECORD HIGHS A LOT OF ANALYSTS ARE LOOKING FOR A PULLBACK TO SOME LEVEL MR. NOTHNAGEL SAID WE'VE HAD THREE YEARS WITHOUT ANY KIND OF SIZABLE CORRECTION NOW PEOPLE ARE LOOKING TO PROTECT SOME OF THEIR GAINS WE'RE TELLING PEOPLE HERE THAT THIS MIGHT BE THE TIME TO HEDGE THEMSELVES PERHAPS THE MOST POPULAR TECHNIQUE FOR DOING THIS IS BUYING PUT OPTIONS WHICH CONFER THE RIGHT TO SELL STOCKS FOR PRESPECIFIED PRICES FOR INVESTORS WORRIED ABOUT A CORRECTION THE STRATEGY AMOUNTS TO ARRANGING IN ADVANCE TO SELL STOCKS FOR TODAY'S PRICES AT SOME POINT IN THE FUTURE THE COST OF THE STRATEGY IS THE PREMIUM OR FEE AN INVESTOR PAYS FOR THE OPTION PLUS THE STOCKBROKER'S COMMISSION FOR BLUE CHIP STOCKS OPTIONS USUALLY COST A FEW HUNDRED DOLLARS APIECE EACH OPTION CONFERS THE RIGHT TO SELL ONE HUNDRED SHARES ANOTHER POPULAR WAY TO HEDGE A BIG STOCK PORTFOLIO IS TO BUY STOCK INDEX OPTIONS WHICH REPRESENT A BROAD BASKET OF STOCKS SUCH AS THE STANDARD AND POOR'S INDEXES OF ONE HUNDRED AND FIVE HUNDRED LEADING STOCKS YET TRADING OF THESE INDEX OPTIONS WHICH WAS ALL THE RAGE BEFORE THE NINETEEN EIGHTY SEVEN CRASH IS BECOMING LESS PREVALENT THAN TRADING ORDINARY STOCK OPTIONS IN PART BECAUSE OF THE INCREASING SPECIALIZATION OF INVESTORS QUOTE WE'RE TRADING MORE EQUITY OPTIONS WHEREAS WE USED TO SEE MORE INDEX OPTIONS TRADING QUOTE SAID THOMAS HART SENIOR OPTIONS STRATEGIST FOR PAINEWEBBER INCORPORATED JANUARY ENDED UP BEING A PRETTY GOOD MONTH FOR US MY TRADING BUSINESS HAS ACTUALLY BEEN PRETTY GOOD OVER THE LAST SIX OR SEVEN MONTHS THE MOST HEAVILY TRADED STOCK OPTIONS CONTRACT IN THE U. S. LAST MONTH WAS TELEFONOS DE MEXICO THE BIG MEXICAN TELECOMMUNICATIONS COMPANY OPTIONS SPECIALISTS SAY INVESTORS VIEW MEXICO AS AN EMERGING GROWTH AREA AND TELEFONOS REPRESENTS ONE OF THE FEW OPPORTUNITIES TO INVEST IN THE REGION A TOTAL OF ONE POINT ONE MILLION TELEFONOS OPTIONS CHANGED HANDS LAST MONTH NEXT MOST POPULAR AMONG OPTIONS INVESTORS WAS PARAMOUNT COMMUNICATIONS WHICH TRADED SIX HUNDRED NINETY FOUR THOUSAND FIVE CONTRACTS IN JANUARY STRATEGISTS SAY THE WAY THE TENDER OFFERS FOR PARAMOUNT ARE STRUCTURED IS IN ITSELF A MAJOR BOON FOR PREVIOUSLY SLEEPY PARAMOUNT OPTIONS CONTRACTS WHICH ARE TRADED AT THE C. B. O. E. AND AT THE AMERICAN STOCK EXCHANGE IN NEW YORK THIS HAS BEEN VERY GOOD FOR THE OPTIONS CONTRACT SAYS MR. SCHWARTZ OF OPPENHEIMER BOTH AS AN INVESTOR HEDGE VEHICLE AND FOR ITS MARKET MAKERS AT THE C. B. O. E. AND AMEX WHO ARE NOW ACTIVELY TRADING AN OPTION THAT WASN'T PREVIOUSLY AMONG THE LEADERS MORE BROADLY A SURGE IN MERGER AND SPINOFF ACTIVITY SUCH AS THE JANUARY SPINOFF OF EASTMAN KODAK COMPANY'S CHEMICAL BUSINESS AS EASTMAN CHEMICAL COMPANY HAS BENEFITED THE OPTIONS BUSINESS AS A WHOLE STRATEGISTS SAY WE'VE SEEN MORE MERGERS IN OPTIONABLE STOCKS THAN WE'VE EVER SEEN SMALLER COMPANIES BEING TAKEN OVER BY RECOGNIZABLE NAME COMPANIES SAID LAURA HOLDER MAKOS VICE PRESIDENT FOR EQUITY OPTIONS AT A. G. EDWARDS AND COMPANY THE JANUARY OPTIONS EXPIRATION WAS PROBABLY THE BIGGEST EXPIRATION THAT WE HAVE HAD SINCE NINETEEN EIGHTY SEVEN KENT ROBERTSON FIFTY TWO YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS COMPUTER TECHNOLOGY COMPANY HE SUCCEEDS GARY VALENZUELA WHO LEFT THE COMPANY MR. ROBERTSON WHO WAS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF RASTEROPS CORPORATION ALSO SUCCEEDS ALLEN SMIRNEY AS SECRETARY MR. SMIRNEY REMAINS CHIEF COUNSEL GENERAL MOTORS CORPORATION HAS DECIDED TO END A CONTRACT WITH BANKERS TRUST NEW YORK CORPORATION TO SERVICE ITS ELEVEN BILLION DOLLARS EMPLOYEE SAVINGS FUND APPARENTLY DUE TO A DISPUTE OVER FEES G. M.'S DECISION COMES AS BANKERS TRUST HAS BEEN TRYING TO INCREASE ACTIVITY AT ITS ASSET SERVICING UNIT QUOTE IT'S CLEARLY A BIG ACCOUNT AND LOSING SUCH AN ACCOUNT IS NOT AN OCCASION FOR REJOICING QUOTE SAID ARTHUR SOTER AN ANALYST WITH MORGAN STANLEY AND COMPANY BUT IT'S NOT THE KISS OF DEATH WHEN YOU'RE TRYING TO GROW SOMETHING YOU HAVE SOME BUMPS IN THE ROAD THE G. M. EMPLOYEE SAVINGS FUND INVOLVES FOUR OH ONE K. PLANS FOR TWO HUNDRED SEVENTY THOUSAND PARTICIPANTS OR ABOUT TEN PERCENT OF THE NUMBER OF INDIVIDUAL ACCOUNTS SERVICED BY THE BANKERS TRUST UNIT BANKERS TRUST KEEPS TRACK OF PARTICIPANTS AT CENTERS IN LOS ANGELES JERSEY CITY N. J. AND NASHVILLE TENNESSEE BANKERS TRUST AND G. M. DECLINED TO COMMENT ON THE STATUS OF THE SERVICE CONTRACT A BANKERS TRUST INTERNAL MEMO HOWEVER CITED CONTINUING SERIOUS DIFFERENCES BETWEEN THE BANK AND G. M. DURING CONTRACT NEGOTIATIONS WHICH HAD LASTED THREE MONTHS ACCORDING TO THE MEMO DATED JANUARY THIRTY FIRST THE TWO COMPANIES HAVE MUTUALLY TERMINATED THE NEGOTIATIONS AND G. M. IS SEEKING ANOTHER COMPANY TO HANDLE THE ACCOUNTS AN ANNOUNCEMENT IS EXPECTED IN THE NEXT COUPLE OF WEEKS THE SERVICING CONTRACT INVOLVES THE ELEVEN BILLION DOLLARS G. M. EMPLOYEE FOUR OH ONE K. PLAN CALLED G. M. SAVINGS STOCK PURCHASE PROGRAM FOR SALARIED PERSONNEL AND G. M. PERSONAL SAVINGS PLAN FOR HOURLY EMPLOYEES ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION BANKERS TRUST AND G. M. FAILED TO REACH AN AGREEMENT ON FEES THE MEMO SAID SERVICE QUALITY WAS NOT A FACTOR BUT COMPENSATION WAS THE ISSUE IN DISPUTE THE MEMO INDICATED THAT G. M. INTENDS TO TRANSFER THE CONTRACT TO ANOTHER COMPANY IN EARLY NINETEEN NINETY FIVE BANKERS TRUST HAS SERVICED THE EMPLOYEE PENSION FUND SINCE NINETEEN NINETY ONE SOME INSIDERS ASSERT THAT BANKERS TRUST SUBMITTED A LOW BID TO LAND THE CONTRACT INITIALLY AND THAT G. M. BALKED WHEN BANKERS TRUST SOUGHT HIGHER FEES IN A CONTRACT RENEWAL BANKERS TRUST OFFICIALS DECLINED TO COMMENT ON WHAT WOULD HAPPEN TO EMPLOYEES INVOLVED IN THE G. M. CONTRACT ACCORDING TO AN EMPLOYEE IN BANKERS TRUST'S LOS ANGELES OFFICE ABOUT SEVENTY PEOPLE WORKED SOLELY ON THE G. M. ACCOUNT THE EMPLOYEE WHO SPOKE ON CONDITION OF ANONYMITY SAID MANAGEMENT HAS TOLD THOSE WHO WORK ON THE QUOTE G. M. TEAM QUOTE THAT THEY WOULD BE GIVEN BUYOUT PACKAGES AND SLASH OR OUTPLACEMENT HELP THEY DIDN'T OFFER TO PLACE US SOMEWHERE ELSE IN THE COMPANY THE EMPLOYEE SAID RUPERT MURDOCH'S BRITISH SATELLITE T. V. VENTURE ONCE DERIDED AS AN ALBATROSS AROUND HIS NECK HAS SUDDENLY BECOME A GOOSE LAYING GOLDEN EGGS THE VENTURE BRITISH SKY BROADCASTING LIMITED ANNOUNCED A SIXFOLD JUMP IN NET INCOME YESTERDAY FOR THE FISCAL FIRST HALF ENDED DECEMBER THIRTY FIRST PROFIT SOARED TO EIGHTY ONE POINT EIGHT MILLION POUNDS ONE HUNDRED TWENTY TWO POINT FOUR MILLION DOLLARS FROM TWELVE POINT FOUR EIGHT MILLION POUNDS A YEAR EARLIER THE VENTURE SAID THE NUMBER OF ITS SUBSCRIBERS ROSE FORTY PERCENT DURING THE HALF YEAR TO THREE POINT TWO FIVE MILLION OR FIFTEEN PERCENT OF BRITISH HOMES AS A DIVIDEND ON ITS GOOD FORTUNE IT ALSO SAID IT HAS STARTED PAYING BACK ITS EIGHT HUNDRED THIRTY MILLION POUND DEBT TO MR. MURDOCH'S NEWS CORPORATION AND OTHER HOLDERS THE VENTURE'S RESULTS WHICH FINALLY ENDED ITS REPUTATION AS A BLACK HOLE FOR MR. MURDOCH'S CASH ALSO HELPED SPRUCE UP ITS PARENT COMPANY'S PERFORMANCE ON WEDNESDAY NEWS CORPORATION REPORTED A SEVENTY PERCENT JUMP IN NET INCOME TO SEVEN HUNDRED SIXTY EIGHT POINT NINE MILLION AUSTRALIAN DOLLARS FIVE HUNDRED FIFTY POINT ONE MILLION DOLLARS FOR THE HALF BY NINETEEN NINETY BSKYB'S LOSSES APPEARED OUT OF CONTROL AND SOME ANALYSTS BEGAN SPECULATING THAT IT MIGHT PULL DOWN MR. MURDOCH'S ENTIRE GLOBAL MEDIA EMPIRE BUT THAT YEAR IT MERGED WITH A YOUNG RIVAL BRITISH SATELLITE BROADCASTING P. L. C. ELIMINATING COMPETITION AND GREATLY EXPANDING ITS PROGRAMMING MORE BRITONS OVERCOMING THEIR INITIAL DISTASTE FOR MOUNTING A DISH ON THEIR HOUSES BEGAN SUBSCRIBING IN MARCH NINETEEN NINETY TWO THE VENTURE BROKE INTO THE BLACK BUT THE LATEST BOOST CAME LARGELY FROM A NEW PROGRAMMING AND MARKETING CAMPAIGN BEGUN LAST SEPTEMBER BSKYB ADDED MORE CHANNELS AND INTRODUCED A NEW FEE STRUCTURE ENCOURAGING VIEWERS TO PAY EXTRA TO RECEIVE ALL OF ITS CHANNELS RATHER THAN JUST A FEW MONTHLY SUBSCRIPTIONS RANGE FROM SIX POUNDS AND NINETY NINE PENCE TO NINETEEN POUNDS AND NINETY NINE PENCE THE RESULT IN THE HALF REVENUE BALLOONED FORTY ONE PERCENT TO TWO HUNDRED FORTY ONE POINT FOUR MILLION POUNDS FROM ONE HUNDRED SEVENTY ONE POINT FIVE MILLION POUNDS A YEAR EARLIER LONDON MEDIA ANALYSTS FORECAST THAT FOR AT LEAST THE NEXT FEW YEARS BSKYB HAS NOWHERE TO GO BUT UP ITS MAIN POTENTIAL RIVALS BRITAIN'S CABLE NETWORKS HAVE SO FAR PROVED ALLIES BY DISTRIBUTING BSKYB'S PROGRAMMING TO THEIR OWN SUBSCRIBERS ANOTHER POTENTIAL COMPETITOR A VIDEO ON DEMAND SERVICE PLANNED BY BRITISH TELECOMMUNICATIONS P. L. C. IN THE MID NINETEEN NINETIES MAY SIMILARLY END UP WORKING WITH BSKYB BY TWO THOUSAND ACCORDING TO ANALYST ALASTAIR SMELLIE OF LEHMAN BROTHERS INCORPORATED AS MANY AS ELEVEN MILLION BRITISH HOMES MAY BE TUNED IN QUOTE I THINK BSKYB IS AN INCREASINGLY ATTRACTIVE PROPOSITION QUOTE BSKYB SAID THAT LAST YEAR IT REPAID FIFTY MILLION POUNDS OF ITS DEBT TO SHAREHOLDERS LEAVING FIVE HUNDRED MILLION POUNDS OWED TO NEWS CORPORATION A TOTAL OF THREE HUNDRED THIRTY MILLION POUNDS TO PEARSON GRANADA AND CHARGEURS AND FOUR HUNDRED THIRTY MILLION POUNDS TO BANKS SAID RICHARD BROOKE BSKYB'S CHIEF FINANCIAL OFFICER HE ADDED THAT BSKYB IS CONSIDERING REFINANCING SOME OF THE HOLDERS' DEBT TURNING IT INTO BANK DEBT BUT THE VENTURE DOESN'T PLAN TO TAP THE STOCK MARKET SQUELCHING WIDESPREAD SPECULATION YESTERDAY A NEWS CORPORATION SPOKESMAN SAID IT HAS NO INTEREST IN SEEING BSKYB SHARES SOLD IN A PUBLIC OFFERING IN SYDNEY TRADING THURSDAY NEWS CORPORATION SHARES ROSE FOUR POINT NINE PERCENT TO CLOSE AT TEN AUSTRALIAN DOLLARS AND FIFTY SIX CENTS ASSUME YOUR COMPANY MAKES HUGE AND COSTLY GENERATORS FOR POWER PLANTS A FOREIGN OFFICIAL PROMISES YOU A BIG ORDER PROVIDED YOU SLIP A FEW MILLION DOLLARS INTO HIS SWISS BANK ACCOUNT YOUR COMPANY NEEDS THE WORK SO YOU AGREE WHAT HAVE YOU DONE IF YOU'RE AN AMERICAN YOU'VE COMMITTED A FELONY AND FACE UP TO FIVE YEARS IN PRISON IF THE COPS FIND OUT BUT IF YOU'RE GERMAN DUTCH OR JAPANESE AMONG OTHERS YOU'VE MERELY BOOKED ANOTHER CORPORATE TAX DEDUCTION THE VALUE OF THE BRIBE AND YOU'VE GOT THE CONTRACT AS WELL THAT'S UNFAIR THE CLINTON ADMINISTRATION INSISTS IT WANTS THE LEADING INDUSTRIAL NATIONS TO ADOPT STRICT ANTIBRIBERY LAWS LIKE THOSE OF THE U. S. THE MOST COMPREHENSIVE ONES ANYWHERE IN HOPES THAT TOUGH NEW RULES WILL RAISE CORPORATE MORALITY WORLD WIDE IT ALSO WOULD LET U. S. COMPANIES COMPETE ON AN EQUAL BASIS FOR THOSE FAT CONTRACTS QUOTE THE U. S. HAS TAKEN A STEP NO ONE ELSE HAS AND IT PUTS OUR BUSINESS PEOPLE REGARDING ILLICIT PAYMENTS IN A DIFFICULT POSITION QUOTE COMPLAINS MICKEY KANTOR THE CHIEF U. S. TRADE NEGOTIATOR COMPANIES WHICH DON'T PAY BRIBES BECAUSE OF LEGAL CONSTRAINTS OR CORPORATE PRACTICE ARE UNFAIRLY DISADVANTAGED SAYS DANIEL TARULLO ASSISTANT SECRETARY OF STATE FOR ECONOMIC AND BUSINESS AFFAIRS AND POINT MAN FOR WASHINGTON'S CAMPAIGN U. S. BUSINESSMEN WELCOME THE EFFORT BECAUSE THE PROBLEM IS GETTING WORSE THEY SAY EUROPEAN COMPANIES IN PARTICULAR BATTERED BY RECESSION ARE EXTRA HUNGRY FOR OVERSEAS WORK BECAUSE THERE'S SO LITTLE TO DO AT HOME SO THEY DO MORE BRIBING IT'S COMPOUNDED BY THE FACT THAT MUCH OF THE AVAILABLE WORK IS FOR HUGE INFRASTRUCTURE PROJECTS IN DEVELOPING LANDS WHERE POORLY PAID AND SUSCEPTIBLE OFFICIALS DECIDE WHO GETS THE BUSINESS ONE U. S. EXECUTIVE SAYS HIS COMPANY RECENTLY WAS TOLD IT HAD WON A BIG MIDEAST POWER PROJECT BUT AFTER SOME LAST MINUTE FUNNY BUSINESS HE SAYS THE CONTRACT WENT TO EUROPE A RETIRED BRITISH EXECUTIVE WITH LONG EXPERIENCE IN ASIA AFRICA AND THE CARIBBEAN ONCE GRADED BRIBES THIS WAY FIVE PERCENT OF TWO HUNDRED THOUSAND DOLLARS WILL BE INTERESTING TO A SENIOR OFFICIAL BELOW THE TOP RANK WHILE FIVE PERCENT OF TWO HUNDRED MILLION DOLLARS JUSTIFIES THE SERIOUS ATTENTION OF THE HEAD OF STATE IN THE NINETEEN NINETIES HE ADDED RATES OF TEN PERCENT AND FIFTEEN PERCENT ARE MORE OFTEN HEARD IN THE U. S. CASE CITED ABOVE THE COMMISSION WAS TWENTY PERCENT STOPPING THIS IS DIFFICULT LEADING INDUSTRIAL NATIONS SUCH AS FRANCE GERMANY AND BRITAIN CITE MANY REASONS WHY THEY CAN'T ADOPT U. S. LAWS SUCH AS THE FOREIGN CORRUPT PRACTICES ACT WHICH OUTLAWS BRIBES OF FOREIGN OFFICIALS THEY SUGGEST FURTHER STUDY BY COMMITTEE THAT'S NO LONGER GOOD ENOUGH FOR THE AMERICANS A COMMITTEE HAS BEEN AT WORK FOR FOUR YEARS WITHOUT NOTABLE RESULT SO IN DECEMBER THE U. S. ASKED THAT PANEL FORMED BY THE TWENTY SIX NATION ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT IN PARIS TO DRAFT STRONG AND SPECIFIC RECOMMENDATIONS QUICKLY TO OUTLAW BRIBES OF FOREIGN OFFICIALS AND END THEIR TAX ADVANTAGES QUOTE THE TIME IS RIPE FOR ACTION QUOTE THE STATE DEPARTMENT SAYS BUT ACTION IS A RELATIVE THING AT THE O. E. C. D. FIRST IT WILL HOST ANOTHER MEETING FEBRUARY FOURTEENTH TO CONSIDER THE U. S. PROPOSAL IF OFFICIALS AGREE ON A TEXT MINISTERS WILL MEET IN APRIL OR MAY TO CONSIDER APPROVAL THAT COULD PRODUCE GUIDELINES TO HELP ALL MEMBER STATES DRAFT THEIR OWN ANTIBRIBERY CODES ALONG SIMILAR LINES YET THINGS AREN'T LIKELY TO MOVE THAT FAST SOME REASONS ARE LEGAL AND POLITICAL MANY GOVERNMENTS CLAIM ANTICORRUPTION LAWS MIGHT BE SEEN AS MEDDLING IN OTHER COUNTRIES' AFFAIRS AND UNLIKE THE AMERICANS MANY AREN'T EAGER TO REGULATE THEIR OWN CITIZENS OVERSEAS ESPECIALLY IN BUSINESS OR TAX MATTERS WE CANNOT ACCEPT THE IDEA OF THIS O. E. C. D. RECOMMENDATION SOMEWHAT OBLIGING JAPAN TO CHANGE ITS CRIMINAL LAW SYSTEM SAYS A FOREIGN MINISTRY OFFICIAL IN TOKYO BUT DON'T FORGET GREED AND DISTRUST COMPANIES WANT MORE BUSINESS AND SUSPECT THEIR RIVALS WON'T PLAY FAIR SO THEY OPPOSE EFFORTS TO LEGISLATE IDEALISM NOT LONG AGO A GERMAN ATTEMPT TO ABOLISH TAX CREDITS FOR FOREIGN BRIBES WAS REJECTED BY THE BUNDESTAG INDUSTRIAL NATIONS HAVE PLENTY OF DOMESTIC CORRUPTION THINK OF JAPAN AND ITALY YET MUCH BRIBERY ALSO OCCURS WHERE LOCAL OFFICIALS FINANCE MAJOR PROJECTS WITH FOREIGN AID AND THAT MAY CONTINUE UNTIL TAXPAYERS WHO SUPPLY THOSE FUNDS GET ANGRY ENOUGH TO DEMAND A HALT OR THE U. S. ACTS AGAINST BIG TIME BRIBERS ON ITS OWN BRAZIL'S GOVERNMENT STRUGGLED TO KEEP AN ECONOMIC STABILIZATION PLAN ON TRACK AFTER CONGRESS SPURNED A VOTE ON A KEY MEASURE THE LEGISLATURE RACKED BY DIVISIONS AND INFIGHTING AHEAD OF GENERAL ELECTIONS IN OCTOBER FAILED WEDNESDAY NIGHT TO SCHEDULE AND APPROVE A CONSTITUTIONAL AMENDMENT CENTRAL TO GOVERNMENT PROPOSALS TO COMBAT HIGH INFLATION AN INFURIATED ECONOMY MINISTER FERNANDO HENRIQUE CARDOSO BITTERLY ATTACKED THE LEGISLATURE IN RESPONSE SAYING THE BRAZILIAN PEOPLE WERE PAYING THE PRICE FOR ITS LACK OF ACTION QUOTE WE GO FROM IMPASSE TO IMPASSE HOW MUCH MORE CAN THE PEOPLE TAKE MR. CARDOSO SAID GOVERNMENT LEADERS IN CONGRESS REDOUBLED EFFORTS TO LINE UP A QUICK VOTE ON THE CONSTITUTIONAL AMENDMENT CREATING A SPECIAL WELFARE FUND SOUGHT BY THE GOVERNMENT BUT FINAL APPROVAL IF IT COMES MIGHT ONLY OCCUR NEXT WEEK OR EVEN LATER THE GOVERNMENT IS OPERATING WITHOUT AN APPROVED BUDGET FOR NINETEEN NINETY FOUR IT WAS THE SECOND TIME IN A WEEK THAT CONGRESS HAD BALKED AT GOVERNMENT PROPOSALS AIMED AT BALANCING THE BUDGET AND REINING IN INFLATION CURRENTLY RUNNING AT FORTY PERCENT A MONTH LAST WEEK THE LEGISLATURE SNUBBED THE GOVERNMENT BY APPROVING ONLY PART OF A PACKAGE OF TAX INCREASES RICHARD W. MCNAIRY FORMERLY AN EXECUTIVE AT HALLIBURTON COMPANY WAS NAMED CHIEF FINANCIAL OFFICER OF THIS PROVIDER OF SEISMIC DATA TO THE PETROLEUM INDUSTRY MR. MCNAIRY FIFTY THREE YEARS OLD FILLS A NEWLY CREATED POSITION INSURANCE COMPANIES ARE EXPECTED TO PAY SEVEN HUNDRED TWENTY FIVE MILLION DOLLARS IN CLAIMS ARISING FROM DAMAGE CAUSED BY LAST MONTH'S FRIGID WEATHER IN THE EASTERN U. S. THE PROPERTY CLAIMS SERVICE DIVISION OF THE AMERICAN INSURANCE SERVICES GROUP THE OFFICIAL SCOREKEEPER OF INSURANCE CLAIMS SAID COLLAPSED ROOFS BUSTED PIPES DOWNED GUTTERS AND POWER BLACKOUTS TRIGGERED CLAIMS IN TWENTY STATES CONNECTICUT NEW YORK NEW JERSEY AND PENNSYLVANIA SUFFERED THE MOST SEVERE DAMAGE PENNSYLVANIA ALONE HAD SIXTY FIVE MILLION DOLLARS IN DAMAGES THE STORMS HIT JANUARY FOURTEENTH THROUGH JANUARY TWENTIETH THE CLAIMS SERVICE IS CURRENTLY PREPARING AN ESTIMATE ON THE LOS ANGELES EARTHQUAKE OF JANUARY SEVENTEENTH UNOFFICIAL ESTIMATES PUT THE CLAIMS AT MORE THAN TWO BILLION DOLLARS E. M. C. CORPORATION CONTINUING ITS RAPID GROWTH LARGELY AT INTERNATIONAL BUSINESS MACHINES CORPORATION'S EXPENSE SAID FOURTH QUARTER PROFIT MORE THAN QUADRUPLED AS REVENUE MORE THAN DOUBLED TO TWO HUNDRED FORTY EIGHT POINT SIX MILLION DOLLARS THE HOPKINTON MASSACHUSETTS BASED MAKER OF DATA STORAGE SYSTEMS FOR MAINFRAME COMPUTERS POSTED NET INCOME OF FORTY SIX POINT EIGHT MILLION DOLLARS OR TWENTY THREE CENTS A SHARE IN THE YEAR EARLIER FOURTH QUARTER NET INCOME WAS TEN POINT FOUR MILLION DOLLARS OR SIX CENTS A SHARE ON FIFTEEN PERCENT FEWER SHARES REVENUE WAS ONE HUNDRED SEVENTEEN POINT EIGHT MILLION DOLLARS THE RESULTS CAME IN SLIGHTLY ABOVE MOST ANALYSTS' ESTIMATES OF TWENTY CENTS A SHARE THE STOCK ROSE TWENTY FIVE CENTS TO TWENTY ONE DOLLARS AND FIFTY CENTS A SHARE IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING OF MORE THAN TWO POINT SEVEN MILLION SHARES QUOTE E. M. C. CONTINUES TO EXECUTE FLAWLESSLY WHILE ITS BIGGER AND MORE POWERFUL COMPETITORS KEEP ON STUMBLING QUOTE SAYS MICHAEL GERAN AN ANALYST WITH THE PERSHING DIVISION OF DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION MICHAEL RUETTGERS E. M. C.'S PRESIDENT AND CHIEF EXECUTIVE CALLED NINETEEN NINETY THREE A SPECTACULAR YEAR FOR E. M. C. AND NOTED THAT GROSS PROFIT MARGINS ACTUALLY ROSE AT THE END OF THE YEAR TO FIFTY THREE PERCENT FROM FIFTY TWO POINT SEVEN PERCENT BUCKING THE INDUSTRY TREND I'D GUESS WE WERE THE ONLY COMPUTER HARDWARE COMPANY WITH IMPROVED GROSS MARGIN IN THE FOURTH QUARTER HE PREDICTED THAT THE COMPANY WOULD CONTINUE TO GROW AND GAIN MARKET SHARE IN NINETEEN NINETY FOUR AND THAT COMPETING PRODUCTS FROM I. B. M. AND STORAGE TECHNOLOGY CORPORATION WOULDN'T BE WIDELY AVAILABLE UNTIL MIDYEAR HOWEVER CITING WHAT HE CALLED THE LAW OF LARGE NUMBERS AND THE COMPANY'S DOUBLING OF ITS ANNUAL REVENUE GROWTH RATE IN NINETEEN NINETY THREE HE CAUTIONED THAT IT WOULD BE DIFFICULT TO GROW AT THAT RATE AGAIN THIS YEAR ANALYSTS SAY E. M. C.'S RAPID EXPANSION IS REMARKABLE GIVEN THAT ITS MARKET MAINFRAME DATA STORAGE ISN'T GROWING E. M. C.'S GAINS HAVE COME BY GRABBING MARKET SHARE FROM ITS MUCH LARGER COMPETITORS INCLUDING I. B. M. AMDAHL CORPORATION STORAGE TECHNOLOGY AND HITACHI LIMITED OF JAPAN E. M. C. HAS ACCOMPLISHED WHAT NO OTHER COMPANY HAS BEEN ABLE TO DO FOR YEARS TAKE A VISIBLE MARKET SHARE IN THE MAINFRAME COMPUTER INDUSTRY SAYS BARRY F. BOSAK AN ANALYST WITH SMITH BARNEY SHEARSON E. M. C.'S SHARE OF THE MAINFRAME STORAGE MARKET GREW TO FOURTEEN POINT SEVEN PERCENT LAST YEAR FROM SIX POINT TWO PERCENT IN NINETEEN NINETY TWO ACCORDING TO MARKET RESEARCHER INTERNATIONAL DATA CORPORATION E. M. C. ACCOMPLISHED THIS WITH A RADICAL DESIGN APPROACH IN WHICH SCORES OF SMALL HARD DISK DRIVES ARE WIRED TOGETHER TO FUNCTION AS A SINGLE LARGE DATA RESPOSITORY AN APPROACH KNOWN AS RAID FOR REDUNDANT ARRAYS OF INEXPENSIVE DISKS THIS TAKES ADVANTAGE OF THE ECONOMIES OF LARGE SCALE PRODUCTION AND COMMODITY PRICING OF THE SMALLER DEVICES WHILE PROVIDING MORE CAPACITY IN A SMALLER CABINET E. M. C. BUYS ITS COMPONENT DRIVES FROM A VARIETY OF SUPPLIERS WIRES THEM INTO RACKS AND TIES THEM TOGETHER WITH THE CRUCIAL SOFTWARE AND CACHE DEVICES THAT MAKES THE INDIVIDUAL DRIVES WORK TOGETHER AS ONE MR. RUETTGERS SAYS THE COMPANY PLANS TO PUSH BEYOND MAINFRAMES THIS YEAR INTO NEW MARKET SEGMENTS SUCH AS ON LINE SYSTEMS AND MULTIMEDIA DATA STORAGE IN WHICH VIDEO VOICE AND INTERACTIVE SERVICES DEMAND FAR GREATER STORAGE CAPACITY THAN IS NEEDED TODAY FOR THE YEAR E. M. C.'S NET INCOME MORE THAN QUADRUPLED TO ONE HUNDRED TWENTY SEVEN POINT ONE MILLION DOLLARS OR SIXTY FIVE CENTS A SHARE FROM TWENTY NINE POINT FIVE MILLION DOLLARS OR SEVENTEEN CENTS A SHARE ON FOURTEEN PERCENT FEWER SHARES IN NINETEEN NINETY TWO REVENUE ROSE TO SEVEN HUNDRED EIGHTY TWO POINT SIX MILLION DOLLARS FROM THREE HUNDRED EIGHTY FIVE POINT SEVEN MILLION DOLLARS WITH HIS TWO NEW HOLLYWOOD STUDIOS IN THE BAG TED TURNER IS ON THE PROWL AGAIN HE WANTS A NETWORK MORE THAN EVER HE SAYS HE IS INTERESTED IN NEW BUSINESS ALLIANCES AND FOR THE FIRST TIME EVER THE RESTLESS CHAIRMAN CHIEF EXECUTIVE AND FOUNDER OF TURNER BROADCASTING SYSTEM INCORPORATED SAYS HE IS PREPARED TO GIVE UP HIS FIFTY ONE PERCENT VOTING CONTROL OF THE COMPANY TO ACCOMPLISH THOSE GOALS HE WOULD NOW PART WITH A SIZABLE CHUNK OF HIS STOCK QUOTE IN A BLUE MINUTE QUOTE HE SAYS THE NEXT MOVE I MAKE I'LL BE BELOW FIFTY ONE PERCENT INDEED THE MAN WHO WAS CONSIDERING BREAKING UP HIS COMPANY A YEAR AGO NOW APPEARS BACK IN IT FOR THE LONG TERM EVEN IF IT MEANS HE HAS A SMALLER STAKE NOW FIFTY FIVE YEARS OLD AND MARRIED TO ACTRESS JANE FONDA MR. TURNER'S DISTINCTIONS ARE MANY AND VARIED A WINNER OF THE AMERICA'S CUP IN HIS YACHT COURAGEOUS IN NINETEEN SEVENTY SEVEN AND THE OWNER OF THE ATLANTA BRAVES HE STARTED HIS BUSINESS CAREER WITH A BILLBOARD COMPANY AT AGE TWENTY FOUR AND BUILT IT INTO A BROACASTING EMPIRE THAT GREW TO INCLUDE CABLE NEWS NETWORK AS HE DISCUSSES THE FUTURE ELEVEN T. V. SCREENS IN HIS SPACIOUS OFFICE BEAM OUT PROGRAMMING FROM HIS OWN CABLE NETWORKS AS WELL AS THE COMPETITION HIS CALENDAR IS JAMMED WITH MEETINGS WITH MEDIA AND ENTERTAINMENT COMPANIES AS HE PONDERS HIS NEXT MOVE AFTER LAST SUMMER'S PURCHASE OF CASTLE ROCK ENTERTAINMENT AND NEW LINE CINEMA CORPORATION I DON'T LIKE BEING THE NINTH OR TENTH LARGEST PLAYER IN THE GAME HE SAYS NOW VIACOM WHICH WAS MY SIZE IS TWICE AS BIG SONY WHICH OWNS COLUMBIA IS TEN TIMES AS BIG MURDOCH IS A LOT BIGGER MR. TURNER LETS IT DROP THAT HE HAS MET WITH EXECUTIVES AT COLUMBIA BUT WON'T DISCUSS THOSE TALKS FURTHER NOR WILL HE COMMENT ON DEALS HE MAY BE WORKING ON BUT PEOPLE CLOSE TO THE COMPANY SAY MR. TURNER HAS RECENTLY TALKED WITH BOTH N. B. C. A DIVISION OF GENERAL ELECTRIC COMPANY AND A. B. C. A UNIT OF CAPITAL CITIES SLASH A. B. C. INCORPORATED ONE PERSON CLOSE TO THE COMPANY SAYS MR. TURNER MIGHT BE WILLING TO DROP HIS VOTING SHARES IN TURNER BROADCASTING AS LOW AS TWENTY FIVE PERCENT TO DO SOME KIND OF NETWORK DEAL AND FORGE OTHER ALLIANCES SUCH A DIMINISHED STAKE WOULD UNDERSCORE THE DAUNTING TASK MR. TURNER HAS SET FOR HIMSELF ALREADY ANY MAJOR CORPORATE MOVE IS SUBJECT TO VETO BY A BOARD DOMINATED BY CABLE T. V. OPERATORS INCLUDING TELE COMMUNICATIONS INCORPORATED AND TIME WARNER INCORPORATED THE COMPANY'S NEXT TWO BIGGEST SHAREHOLDERS THEY HAVE IN THE PAST BLOCKED MOVES WHERE HIS INTERESTS CONFLICTED WITH THEIRS AND EVEN IN CASES WHERE MR. TURNER HAS PREVAILED LIKE THE PURCHASE OF THE CASTLE ROCK AND NEW LINE MOVIE STUDIOS LAST YEAR HE HAS GIVEN UP SOME MANEUVERING ROOM IN ADDITION TO THE NEARLY EIGHT HUNDRED MILLION DOLLARS TURNER BROADCASTING PAID FOR THE TWO STUDIOS IT GRANTED THEIR EXECUTIVES CONSIDERABLE AUTONOMY MR. TURNER NONETHELESS FEELS HIS COMPANY MUST GROW EVEN IF IN THE PROCESS HIS OWN ONCE ABSOLUTE CONTROL DECLINES AS HE EXPLAINS IT JUST TAKE A LOOK AT THE SOFT DRINK BUSINESS HOW MANY VIABLE COMPETITORS ARE THERE ONLY TWO HOW ABOUT THE AIRLINE BUSINESS THERE ARE FOUR OR FIVE HOW MANY REALLY VIABLE FAST FOOD CHAINS ARE THERE QUOTE SO TENTH IS NOT SO HOT QUOTE MR. TURNER NEEDS A NEW NETWORK HE SAYS PARTLY BECAUSE HE IS HOBBLED BY HIS CABLE PROGRAMMER STATUS WE CAN'T BID FOR THE OLYMPICS WE CAN'T BE A PRIMARY BIDDER FOR THE N. F. L. WE'RE ALWAYS BIDDING ON SECONDARY PACKAGES HE COULD ALSO SAVE MONEY BY COMBINING VARIOUS NETWORK NEWS FUNCTIONS WITH C. N. N. HE SAYS HIS TWO NEW STUDIOS WILL BE A BIG HELP IN SUPPLYING FRESH SOURCES OF PROGRAMMING BUT NOT RIGHT AWAY THE COMPANY PLANS A GRADUAL INCREASE IN THE NUMBER OF MOVIES ITS STUDIOS MAKE EACH YEAR COMPANY OFFICIALS SAY TURNER PICTURES THE COMPANY'S INTERNALLY DEVELOPED STUDIO WILL GO FROM MAKING ONE MOVIE IN NINETEEN NINETY THREE THE CIVIL WAR EPIC GETTYSBURG TO AS MANY AS EIGHT IN FIVE YEARS SAYS TURNER ENTERTAINMENT PRESIDENT SCOTT SASSA WHO WILL OVERSEE THAT VENTURE ALONG WITH THE COMPANY'S CABLE NETWORKS T. B. S. T. N. T. THE CARTOON NETWORK AND THE UPCOMING TURNER CLASSIC MOVIES CASTLE ROCK AND NEW LINE WHICH REPORT DIRECTLY TO MR. TURNER WILL ALSO ADD ONLY A COUPLE OF FILMS A YEAR TO THEIR RESPECTIVE PRODUCTION SCHEDULES EVEN THEN MR. TURNER STILL FACES CONSIDERABLE HURDLES IN THE MOVIE BUSINESS CHIEF AMONG THOSE IS COST HOLLYWOOD EXECUTIVES SAY A MAJOR STUDIO CAN SPEND ONE MILLION DOLLARS A DAY IN ADMINISTRATIVE COSTS AND ANOTHER EIGHT HUNDRED MILLION DOLLARS OR SO EACH YEAR PRODUCING MOVIES BY STARTING OUT SLOWLY TURNER BROADCASTING SAYS IT CAN FUND BIG BUDGET MOVIES LIKE CASTLE ROCK'S IN THE LINE OF FIRE IT HAS PLEDGED TO MAKE MOVIES LIKE THAT FOR BOTH CASTLE ROCK AND NEW LINE SUCH FILMS TYPICALLY AVERAGE AROUND FORTY MILLION DOLLARS PER PICTURE AFTER ADVERTISING COSTS ARE FIGURED IN BUT TURNER OFFICIALS SAY MOST OF THE COSTS CAN BE FINANCED THROUGH THE CASH FLOW OF THE STUDIOS AND TURNER ITSELF OUR INCREMENTAL BORROWING IS EXPECTED TO BE MODEST SAYS WAYNE PACE TURNER'S CHIEF FINANCIAL OFFICER INITIALLY CASTLE ROCK AND NEW LINE COMBINED SHOULD CONTRIBUTE SMALL OPERATING PROFITS TO TURNER BROADCASTING THIS YEAR MR. PACE SAYS ALTHOUGH CASTLE ROCK HAD BEEN PLAGUED BY CASH FLOW PROBLEMS NEW LINE HAS BEEN PROFITABLE FOR YEARS AND ITS NINETEEN NINETY FOUR PROFITS SHOULD JUMP TO TWENTY THREE MILLION DOLLARS FROM THIRTEEN MILLION DOLLARS LAST YEAR ACCORDING TO A SECURITY AND EXCHANGE COMMISSION FILING MANAGING THE NEW STUDIOS COULD ALSO PROVE TRICKY ALL THREE WILL OPERATE INDEPENDENTLY WHILE MR. SASSA WILL OVERSEE TURNER PICTURES MR. TURNER HIMSELF WILL OVERSEE CASTLE ROCK AND NEW LINE HE HAS BENT OVER BACKWARD TO MAKE SURE THAT HE KEEPS THEIR CREATIVE TALENT SO CRITICAL TO SUCCESSFUL MOVIE MAKING INTACT HE SIGNED BOTH ROB REINER PERHAPS CASTLE ROCK'S MOST RESPECTED PRODUCER AND DIRECTOR AND ALAN HORN THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE TO SEVEN YEAR CONTRACTS SIMILARLY NEW LINE CHIEF EXECUTIVE OFFICER AND FOUNDER ROBERT SHAYE AND PRESIDENT MICHAEL LYNNE WHO BUILT A SUCCESSFUL TWO HUNDRED FILM LIBRARY OF MOSTLY LOW BUDGET B. MOVIES HAVE SIGNED EMPLOYMENT AGREEMENTS THROUGH NINETEEN NINETY EIGHT TO SEAL THAT DEAL MR. TURNER AGREED TO PAY BOTH MEN MORE THAN ONE MILLION DOLLARS A YEAR OR SUBSTANTIALLY MORE THAN HIS OWN NINETEEN NINETY TWO BASE SALARY OF SEVEN HUNDRED SIXTY FIVE THOUSAND FIVE HUNDRED FIFTY FOUR DOLLARS HE HAS ASSURED HIS NEW MOVIE EXECUTIVES THAT THEY WILL GET COMPLETE CREATIVE CONTROL QUOTE THERE'S NOTHING WORSE THAN BUYING A BUSINESS BUILT ON CREATIVITY AND TAKING THAT CREATIVITY AWAY FROM THEM THAT WOULD BE DUMB MR. TURNER SAYS THAT ARRANGEMENT COULD PROVE NETTLESOME DOWN THE ROAD MR. TURNER'S MOVIE BUDGET WILL BE SUBJECT TO BOARD APPROVAL AND HE WILL DIVVY IT UP AMONG THE THREE STUDIOS WHO WILL HAVE ULTIMATE SAY IN HOW TO SPEND IT THE TURNER BOARD WHICH KEEPS A CLOSE EYE ON COSTS ISN'T LIKELY TO TOLERATE BIG OVERRUNS AND THAT COULD LIMIT THE STUDIOS' FREEDOM TO TAKE RISKS AND SOME INDUSTRY EXPERTS WONDER JUST HOW FAR BOARD MEMBER TIME WARNER IS WILLING TO GO IN LETTING MR. TURNER CREATE A MOTION PICTURE COMPETITOR TIME WARNER PARENT OF WARNER BROTHERS STUDIO WILL VOTE ALONG WITH THE OTHER DIRECTORS ON TURNER BROADCASTING'S ANNUAL FILMMAKING BUDGETS AND COULD EFFECTIVELY KEEP MR. TURNER'S MOVIE AMBITIONS IN CHECK MR. TURNER INSISTS THAT WON'T BE A PROBLEM AS DIRECTORS OF TURNER BROADCASTING HE SAYS TIME WARNER CAN'T DO THINGS THAT ARE NOT IN THE BEST INTERESTS OF THIS CORPORATION MOREOVER MR. TURNER WHO WAS SO FRUSTRATED BY HIS BOARD ALLIANCES A YEAR AGO NOW SEEMS QUITE RESIGNED TO THEM I REALLY DO LIKE THE COLLABORATIVE MODEL RATHER THAN THE DOMINATOR MODEL HE SAYS YOU ARE NEVER GOING TO CONQUER THE WORLD CONQUEST IS OUT PEOPLE DON'T WANT TO BE DOMINATED GEORGE F. PICKETT JUNIOR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS REGIONAL AIR CARRIER WAS NAMED CHAIRMAN MR. PICKETT FIFTY TWO YEARS OLD SUCCEEDS ALAN VOORHEES SEVENTY TWO WHO WILL CONTINUE TO SERVE AS A BOARD MEMBER JOHN W. BEISER FIFTY THREE A SENIOR VICE PRESIDENT WILL SUCCEED MR. PICKETT AS PRESIDENT THE ASIAN DEVELOPMENT BANK IN AN UNUSUALLY BLUNT BOUT OF SELF CRITICISM ACKNOWLEDGED THAT IT HAS BEEN MORE CONCERNED WITH MEETING LENDING TARGETS THAN WITH THE BENEFITS OF THE PROJECTS IT HAS FUNDED AND IT PROMISED TO DO BETTER IN THE FUTURE HOWEVER PLANNED CHANGES MAY COST MORE MONEY AND COULD SLOW THE PACE AT WHICH THE BANK'S DEVELOPMENT LENDING HAS BEEN GROWING IN RECENT YEARS THE BANK'S SELF SCRUTINY CONTAINED IN AN INTERNAL REPORT RELEASED YESTERDAY FOLLOWS CALLS BY DONOR COUNTRIES NOTABLY THE U. S. FOR THE MULTILATERAL LENDING AGENCY TO TAKE A HARDER LOOK AT WHERE ITS MONEY IS GOING QUOTE MANY DELEGATES POINTED OUT THE NEED FOR THIS KIND OF EXERCISE QUOTE SAID A. D. B. PRESIDENT MITSUO SATO THE FIFTY SIX PAGE REPORT WHICH NOTES THAT ABOUT A FIFTH OF THE BANK'S PROJECTS ARE HAVING SOME TROUBLE SUGGESTS A ONE TIME SPRING CLEANING OF INACTIVE OR SLOW MOVING PROJECTS THE REPORT BLAMES THE BANK'S APPROVAL CULTURE THE DESIRE TO MEET PROGRAMMED LENDING TARGETS FOR BOTH SPEEDING UP THE PROCESSING OF LOANS AT THE EXPENSE OF PROJECT DESIGN AND FOR INSUFFICIENT CONSIDERATION OF LOCAL NEEDS DEMANDS AND ABSORBTIVE CAPACITIES FOR EXAMPLE THE REPORT SAYS LOAN FACT FINDING MISSIONS SOMETIMES START EVEN BEFORE PROJECT FEASIBILITY STUDIES ARE COMPLETED ANOTHER CONSEQUENCE OF THE APPROVAL CULTURE IS THAT PROJECT IMPLEMENTATION DOESN'T GET AS MUCH ATTENTION AS DO PREPARATION AND LOAN APPROVALS THE REPORT SAYS CHANGING THE BANK'S INSTITUTIONAL MIND SET WON'T BE EASY HOWEVER JUST PREACHING IT IS NOT ENOUGH MR. SATO TOLD REPORTERS PLEDGING VERY DEEP CHANGES IN THE BANK'S CORPORATE CULTURE AND PROCEDURES AND MORE DIVERSIFICATION IN ITS STAFF AS A START HE PLANS TO PUT PROJECT ADMINISTRATION ON AN EQUAL FOOTING WITH PROJECT PROCESSING TO OFFER INCENTIVES FOR CHANGE TO THE BANK'S EMPLOYEES THE REPORT ALSO ADVOCATES DECENTRALIZING BANK OPERATIONS FOR GREATER FLEXIBILITY AND INITIATIVE SUGGESTS MORE REGULAR REVIEWS OF PROJECTS AND RECOMMENDS INCORPORATING THE FEEDBACK OBTAINED FROM PAST PROJECTS MOREOVER THE REPORT SAYS LOAN RECIPIENTS OUGHT TO BE MORE INVOLVED IN PROJECTS WE MIGHT HAVE BEEN TOO PATERNALISTIC TO MEMBER COUNTRIES SAID MR. SATO QUOTE WE MIGHT HAVE BEEN SPOILING THEM QUOTE IF ACCEPTED THE RECOMMENDATIONS WOULD SLOW DOWN THE PROCESSING OF LOANS WHILE MR. SATO SAID HE DOESN'T EXPECT ANY DECLINE IN THE BANK'S LENDING LENDING GROWTH COULD DIMINISH FROM THE SEVEN PERCENT TO EIGHT PERCENT PACE OF THE PAST FEW YEARS THE CHANGES MAY ALSO COST MONEY ALTHOUGH JUST HOW MUCH ISN'T YET CLEAR THERE WILL BE PRODUCTIVITY GAINS AND SOME RESOURCE SAVINGS AS A RESULT OF THE IMPLEMENTATION OF SOME OF THESE RECOMMENDATIONS BUT THE TRADE OFFS BETWEEN PROJECT QUALITY AND THE NEED FOR MORE RESOURCES WILL HAVE TO BE CLOSELY EXAMINED MR. SATO SAID STILL THE REPORT WILL PROBABLY HELP CLEAR THE WAY FOR A CAPITAL INCREASE THAT WAS PROPOSED BY THE BANK LAST YEAR BUT WAS STYMIED BY U. S. FOOT DRAGGING MR. SATO SAID HE IS CONFIDENT OF SECURING APPROVAL TO ROUGHLY DOUBLE THE BANK'S AUTHORIZED SHARE CAPITAL TO FORTY SIX BILLION DOLLARS BANK OFFICIALS SAID THEY WOULD HAVE TO DRASTICALLY CUT BACK ON LENDING IF THE INCREASE ISN'T APPROVED THE BANK'S SHAREHOLDER COUNTRIES WERE ASKED TO CONTRIBUTE A TOTAL OF ABOUT ONE POINT ONE FIVE BILLION DOLLARS OR LESS WITH THE REST OF THE INCREASED CAPITAL IN CALLABLE EQUITY WHICH COULD BE SOLICITED BY THE BANK IN AN EMERGENCY WITH ABOUT A SIXTEEN PERCENT STAKE EACH THE U. S. AND JAPAN ARE THE BANK'S BIGGEST SHAREHOLDERS THE SECURITIES AND EXCHANGE COMMISSION CHARGED GOLDMAN SACHS AND COMPANY WITH VIOLATING SECURITIES LAW IN CONNECTION WITH A SERIES OF PREARRANGED TREASURY SECURITIES TRADES DESIGNED TO DEFER TAXES IN ITS ACTION YESTERDAY THE S. E. C. CENSURED GOLDMAN SACHS AND FINED IT TWO HUNDRED FIFTY THOUSAND DOLLARS THE CIVIL PENALTIES WERE BASED ON RECORD KEEPING VIOLATIONS FOUND AFTER OCTOBER FIFTEENTH NINETEEN NINETY THE EFFECTIVE DATE OF A LAW AUTHORIZING THE S. E. C. TO LEVY CIVIL PENALTIES GOLDMAN SACHS WAS ORDERED TO CEASE AND DESIST FROM FUTURE VIOLATIONS AND TO INSTITUTE INTERNAL PROCEDURES WITHIN NINETY DAYS DESIGNED TO ASSURE COMPLIANCE WITH THE LAW GOLDMAN SACHS SETTLED THE S. E. C.'S COMPLAINT WITHOUT ADMITTING OR DENYING THE ALLEGATIONS A STATEMENT BY THE FIRM'S MANAGEMENT COMMITTEE SAID THE COMPANY COOPERATED FULLY WITH THE S. E. C.'S INVESTIGATION AND THAT THE INTERNAL CONTROLS ORDERED BY THE AGENCY ARE BEING IMPLEMENTED THE S. E. C. ALLEGED THAT GOLDMAN SACHS BROKE RECORD KEEPING RULES BY FALSELY RECORDING FIFTEEN TRADES IN THE NINETEEN EIGHTIES AS BONA FIDE TRANSACTIONS IN WHICH THE OWNERSHIP OF SECURITIES CHANGED HANDS WHEN IN FACT NO CHANGE IN OWNERSHIP OCCURRED IT ALSO CHARGED THE FIRM WITH BOOKS AND RECORDS VIOLATIONS UNRELATED TO THE SO CALLED TAX TRADES WHICH WERE AIMED AT SHOWING LOSSES FOR TAX PURPOSES ACCORDING TO AN S. E. C. ADMINISTRATIVE COMPLAINT FILED YESTERDAY THE AGENCY CHARGED GOLDMAN SACHS WITH FAILING TO PROPERLY SUPERVISE THOSE RESPONSIBLE FOR THE TRADES NO INDIVIDUALS WERE NAMED IN THE COMPLAINT AND NO FURTHER S. E. C. ACTION IS EXPECTED IN THE CASE SPOKESMEN FOR GOLDMAN SACHS AND SALOMON BROTHERS INCORPORATED WITH WHOM GOLDMAN SACHS CONDUCTED SOME OF THE TRADES BOTH DECLINED TO COMMENT ON WHETHER THEY HAVE HAD ANY CONTACT WITH THE INTERNAL REVENUE SERVICE REGARDING THEIR TAX TRADES THE I. R. S. ALSO DECLINED TO COMMENT THE ALLEGED VIOLATIONS TRIGGERING THE TWO HUNDRED FIFTY THOUSAND DOLLAR PENALTY WEREN'T RELATED TO THE SUPPOSED TAX TRADES BUT INSTEAD FLOWED FROM WHAT THE S. E. C. DEPICTED AS SLIPSHOD RECORD KEEPING PRACTICES IN GOLDMAN'S GOVERNMENT SECURITIES OPERATIONS AFTER ENACTMENT OF THE CIVIL PENALTIES LAW QUOTE IN THE PAST AND AS RECENTLY AS AUGUST NINETEEN NINETY ONE GOLDMAN GOVERNMENT SECURITIES TRADERS AND SALES REPRESENTATIVES DID NOT MAKE RECORDS OF CUSTOMER ORDERS THEY RECEIVED QUOTE THE AGENCY SAID THE S. E. C. SAID THE PREARRANGED NATURE OF THE TAX TRADES ELIMINATED MARKET RISK IT SAID GOLDMAN WAS ABLE TO REALIZE LOSSES TOTALING THIRTY SIX POINT SIX MILLION DOLLARS FROM THESE TRADES WHICH ALLOWED THE FIRM TO DEFER CERTAIN TAX OBLIGATIONS JOSEPH GOLDSTEIN AN ASSOCIATE S. E. C. ENFORCEMENT DIRECTOR SAID THAT TRADING FOR TAX MOTIVATED PURPOSES CAN BE QUITE LEGITIMATE WHAT ISN'T LEGITIMATE HE SAID IS TO RECORD TRADES AS BONA FIDE AT RISK TRANSACTIONS WHEN THAT ISN'T THE CASE THE FEDERAL GOVERNMENT IS CONSIDERING MAKING ANTILOCK BRAKES MANDATORY BUT THE AUTO INDUSTRY SAYS NO MANDATE IS NEEDED BECAUSE CONSUMERS ARE DEMANDING THE SOPHISTICATED BRAKES THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION IS ASKING FOR PUBLIC COMMENT ON A POSSIBLE RULE THAT WOULD REQUIRE ANTILOCK BRAKES ON ALL CARS AND TRUCKS THE REQUEST FOR COMMENT BY MARCH SEVENTH STARTS A LENGTHY RULE MAKING AND REVIEW PROCESS QUOTE WE'RE NOT SURE IT SHOULD BE MANDATED SINCE WE'RE DOING IT ANYWAY QUOTE SAID ROBERT MUNSON EXECUTIVE DIRECTOR OF AUTOMOTIVE SAFETY AND ENGINEERING STANDARDS AT FORD MOTOR COMPANY ABOUT FORTY TWO PERCENT OF U. S. BUILT CARS WERE SOLD WITH ANTILOCK BRAKES IN THE NINETEEN NINETY THREE MODEL YEAR UP FROM THIRTY TWO PERCENT THE PREVIOUS YEAR ACCORDING TO WARD'S AUTOMOTIVE REPORTS A TRADE JOURNAL MOST VEHICLES SOLD IN THE U. S. HAVE ANTILOCK BRAKES EITHER STANDARD OR AVAILABLE AS AN OPTION THE AGENCY'S MOVE TOWARD INCREASING ANTILOCK BRAKE USE COMES ONLY A WEEK AFTER AN INSURANCE GROUP RELEASED A STUDY SHOWING THAT ANTILOCK BRAKES DON'T DO MUCH TO REDUCE CLAIMS IN ACCIDENTS MOST CONSUMERS LIKE THE ADDED CONTROL THE BRAKES GIVE ON ICE ACCORDING TO FORD NINETY PERCENT OF CONSUMERS WITH ANTILOCK BRAKES AND SEVENTY PERCENT OF THOSE WITHOUT ANTILOCK BRAKES WOULD LIKE THE EQUIPMENT ON THEIR NEXT VEHICLE THEY ADD ABOUT FIVE HUNDRED SIXTY FIVE DOLLARS TO THE COST OF A FORD TAURUS PAINEWEBBER GROUP INCORPORATED IS EXPECTED TO ANNOUNCE TODAY A TOP LEVEL REORGANIZATION DESIGNED TO POSITION THE RETAIL BROKERAGE COMPANY FOR A BIG PUSH FOR NEW BUSINESS THE MANAGEMENT SHAKE UP FOLLOWS A THREE FOR TWO STOCK SPLIT DECLARED YESTERDAY THE FIRM ALSO BOOSTED ITS QUARTERLY DIVIDEND TO TWELVE CENTS A SHARE PREVIOUSLY IT HAD PAID A QUARTERLY OF FIFTEEN CENTS WHICH IS EQUAL TO TEN CENTS A SHARE ON A POSTSPLIT BASIS PAINEWEBBER SHARES SLID DESPITE NEWS OF THE SPLIT AND THE DIVIDEND BOOST EASING TO TWENTY SEVEN POINT EIGHT SEVEN FIVE DOLLARS DOWN SIXTY TWO POINT FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE SHAKE UP ANNOUNCED IN AN INTERNAL COMPANY MEMO STREAMLINES THE COMPANY INTO FOUR REGIONAL DIVISIONS IT ELEVATES JOSEPH GRANO PAINEWEBBER'S FORTY FIVE YEAR OLD PRESIDENT OF RETAIL SALES AND MARKETING AND LEE FENSTERSTOCK FORTY FIVE DIRECTOR OF CAPITAL MARKETS TO TOP MANAGEMENT THEY WILL JOIN THE FIRM'S CHAIRMAN DONALD MARRON AND ITS PRESIDENT PAUL GUENTHER ON A FOUR PERSON EXECUTIVE COMMITTEE THE FIRM ALSO ANNOUNCED A SERIES OF PROMOTIONS MOST OF WHICH WENT TO EXECUTIVES ON ITS SALES SIDE OR WHO HAD BEEN INVOLVED IN THE DESIGN AND IMPLEMENTATION OF A NEW COMPUTER SYSTEM DESIGNED TO BOOST BROKER PRODUCTIVITY THE GOAL OF THE MANAGEMENT CHANGES PAINEWEBBER OFFICIALS SAID IS TO STRENGTHEN LINKS BETWEEN THE PRODUCT SIDE OF THE BUSINESS AND THE RETAIL SIDE AND BOOST SALES ROBERT SILVER WHO HEADED THE RETAIL BRANCH NETWORK BECOMES CHIEF OF MARKETING AND FRANK MINARD CHAIRMAN OF THE MITCHELL HUTCHINS ASSET MANAGEMENT DIVISION THAT OVERSEES PAINEWEBBER'S MUTUAL FUNDS WILL NOW REPORT TO THE HEAD OF RETAIL SALES MR. GRANO THE REORGANIZATION COMES AS THE FIRM ROLLS OUT AT ITS BRANCH OFFICES A ONE HUNDRED MILLION DOLLAR COMPUTER DATABASE AND BROKER OVERSIGHT SYSTEM THE SYSTEM CALLED QUOTE WINDOW OF OPPORTUNITY QUOTE FLAGS A BROKER WHEN A PARTICULAR STOCK HAS DROPPED LISTS ANY AVAILABLE PAINEWEBBER RESEARCH REPORTS ON THE STOCK DISPLAYS THE NAMES AND PHONE NUMBERS OF ANY BRANCH CLIENTS WHO OWN THE STOCK AND DISPLAYS SUGGESTED ALTERNATIVE INVESTMENTS ROBERT BENMOSCHE DESIGNER OF THE COMPUTER SYSTEM AND THE FIRM'S HEAD OF SYSTEMS AND OPERATIONS HAS BEEN PROMOTED TO SOUTHERN DIVISION MANAGER MARTEN HOEKSTRA MANAGER OF THE CHICAGO OFFICE WILL RUN THE NORTHEAST DIVISION MIKE DAVIS FORMERLY HEAD OF SOUTHERN PACIFIC BUSINESS BECOMES WESTERN DIVISION MANAGER CLARENCE CATALLO REMAINS NORTH CENTRAL DIVISION MANAGER THE FIRM ALSO CREATED AN EIGHTEEN MEMBER BOARD OF DIRECTORS FOR THE BROKERAGE UNIT AND NAMED REGINA DOLAN ITS PRINCIPAL FINANCIAL OFFICER TO THE ADDITIONAL POSITION OF CHIEF FINANCIAL OFFICER OF THE PARENT THE STOCK SPLIT IS PAYABLE MARCH TENTH TO SHARES OF RECORD FEBRUARY SEVENTEENTH THE CASH DIVIDEND IS PAYABLE APRIL EIGHTEENTH TO SHARES OF RECORD MARCH TWENTY EIGHTH GOLDEN WEST FINANCIAL CORPORATION SWEETENED ITS PROPOSED TAKEOVER BID FOR TROUBLED CALIFORNIA FEDERAL BANK OFFERING TO ADD A SPECULATIVE SECURITY THAT WOULD EQUAL THE DIFFERENCE IN THE TWO BANKS' VALUATION OF CALFED IN A LETTER TO CALFED'S BOARD GOLDEN WEST'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HERBERT M. SANDLER PROPOSED THE ESTABLISHMENT OF RESERVES COVERING POSSIBLE ADDITIONAL LOSSES ON CALFED'S ASSETS MR. SANDLER SAID GOLDEN WEST WOULD CONSULT WITH CALFED'S ADVISER FIRST BOSTON TO ESTABLISH THE RESERVES UNDER THE ACQUISITION OFFER CALFED HOLDERS WOULD RECEIVE A SECURITY REPRESENTING AN INTEREST IN THE RESERVES QUOTE TO THE EXTENT THE ADDITIONAL RESERVES PROVE TO BE UNNECCESARY QUOTE MR. SANDLER SAID QUOTE THEN HOLDERS OF THIS SECURITY WOULD RECEIVE THE VALUE OF THE RESERVE QUOTE GOLDEN WEST ACKNOWLEDGED THE PROPOSAL WAS BASED ON A SIMILAR PROVISION INVENTED BY BANKAMERICA CORPORATION DURING ITS SUCCESSFUL TAKEOVER OF SEAFIRST CORPORATION A DECADE AGO THOSE SECURITIES DUBBED HOPE CERTIFICATES BY SKEPTICS IN THE FINANCIAL COMMUNITY PROVED NEARLY WORTHLESS TO SEAFIRST SHAREHOLDERS WHEN THE SEATTLE BASED BANK'S LOANS WERE EVALUATED BY OUTSIDE UMPIRES OVER THE FIVE YEARS AFTER THE SECURITIES WERE ISSUED MR. SANDLER'S OFFER COMES ON TOP OF GOLDEN WEST'S CONDITIONAL SIX HUNDRED THIRTY MILLION DOLLAR BID FOR CALFED LAST MONTH GOLDEN WEST SAID IT WOULD PAY TWENTY ONE DOLLARS AND FIFTY CENTS A SHARE FOR CALFED'S TWENTY FIVE MILLION COMMON SHARES OUTSTANDING PLUS NINETY MILLION DOLLARS FOR PREFERRED STOCK BUT WOULD DEDUCT POTENTIAL LOSSES UNCOVERED DURING GOLDEN'S REVIEW OF CALFED'S RECORDS SUCH AS ANY ADDITIONAL REAL ESTATE WRITE DOWNS CALFED'S BOARD REJECTED THE OFFER SAYING IT WASN'T ENOUGH AND DECLARING THE LOS ANGELES BASED THRIFT WAS NOT FOR SALE AT THIS TIME CALFED WITH FIFTEEN POINT SEVEN BILLION DOLLARS IN ASSETS HAS REPORTED CONTINUING LOSSES ALTHOUGH A SPOKESMAN SAID IT CUT ITS NONPERFORMING ASSETS BY THIRTY ONE PERCENT IN THE LAST QUARTER CALFED'S SPOKESMAN DECLINED TO COMMENT ON GOLDEN WEST'S SWEETENED BID OTHER THAN TO SAY THE THRIFT'S BOARD WOULD LOOK AT IT DURING ITS NEXT SCHEDULED MEETING FEBRUARY EIGHTEENTH SOME ANALYSTS CHEERED GOLDEN WEST'S NEW BID IT'S ABOUT AS FIRM AN OFFER AS THEY COULD COME UP WITH AT THIS STAGE SAID JOSEPH JOLSON OF MONTGOMERY SECURITIES IN SAN FRANCISCO MR. JOLSON SAID THAT GIVEN CALFED'S SHAKY FINANCES THE THRIFT WOULD BE WISE TO ACCEPT THE PLAN PRIVATELY HOWEVER SEVERAL PEOPLE CONTACTED CALFED OFFICIALS AND LARGE SHAREHOLDERS IN THE THRIFT DISMISSED THE SCHEME AS TOO SPECULATIVE TO BE MEANINGFUL IF THEY WERE WILLING TO ISSUE GOLDEN WEST STOCK TO MAKE UP THE DIFFERENCE THAT MIGHT BE SOMETHING SAID ONE LARGE HOLDER WHO REQUESTED ANONYMITY I DON'T KNOW WHAT VALUE THIS SECURITY HAS I DON'T THINK IT WILL GET PAST THE BOARD GOLDEN WEST'S COMMON STOCK FELL FIFTY CENTS OR ONE POINT ONE PERCENT TO CLOSE AT FORTY FOUR POINT ONE TWO FIVE DOLLARS A SHARE WHILE CALFED'S FELL TWELVE POINT FIVE CENTS OR ZERO POINT EIGHT PERCENT TO FOURTEEN POINT EIGHT SEVEN FIVE DOLLARS BOTH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MONEY MARKET MUTUAL FUND ASSETS TUMBLED NINE POINT TWO SIX BILLION DOLLARS TO FIVE HUNDRED NINETY THREE POINT SEVEN BILLION DOLLARS FROM A REVISED SIX HUNDRED TWO POINT NINE SIX BILLION DOLLARS FOR THE WEEK ENDED WEDNESDAY FEBRUARY SECOND THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF SIX HUNDRED FIFTY TWO RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY EIGHT HUNDRED TWENTY SIX MILLION DOLLARS TO FOUR HUNDRED POINT OH THREE BILLION DOLLARS THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF FOUR HUNDRED FIVE TAXABLE MONEY MARKET FUNDS INCREASED BY FIVE HUNDRED FIFTY FOUR POINT SIX MILLION DOLLARS TO THREE HUNDRED TEN BILLION DOLLARS ASSETS OF TWO HUNDRED FORTY SEVEN RETAIL TAX EXEMPT FUNDS INCREASED BY TWO HUNDRED SEVENTY ONE POINT FOUR MILLION DOLLARS TO NINETY POINT OH THREE BILLION DOLLARS ASSETS OF THE TWO HUNDRED EIGHTY TWO INSTITUTIONAL MONEY MARKET FUNDS FELL BY TEN POINT OH NINE BILLION DOLLARS TO ONE HUNDRED NINETY THREE POINT SIX SEVEN BILLION DOLLARS AMONG INSTITUTIONAL FUNDS THE ASSETS OF TWO HUNDRED TWENTY EIGHT TAXABLE MONEY MARKET FUNDS DROPPED BY TEN POINT TWO TWO BILLION DOLLARS TO ONE HUNDRED SEVENTY POINT EIGHT FOUR BILLION DOLLARS ASSETS OF FIFTY FOUR TAX EXEMPT FUNDS ROSE BY ONE HUNDRED THIRTY FOUR POINT EIGHT MILLION DOLLARS TO TWENTY TWO POINT EIGHT THREE BILLION DOLLARS TOKYO STOCKS FELL THURSDAY AS INVESTORS WERE NERVOUS ABOUT THE STABILITY OF JAPAN'S GOVERNING COALITION WHICH IS DIVIDED ABOUT TAX PROPOSALS THE LONDON AND FRANKFURT MARKETS EACH TUMBLED ON DISAPPOINTMENT THAT GERMANY DIDN'T LOWER INTEREST RATES AND THAT THE GERMAN MONEY SUPPLY SURGED NEWS THAT ALSO PRESSURED PRICES ON OTHER EUROPEAN BOURSES BUT SYDNEY STOCKS ADVANCED ONE POINT ONE PERCENT TO A RECORD WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED EIGHTEEN POINT TWO SEVEN DOWN ZERO POINT SEVEN FIVE REFLECTING LOWER MARKETS IN ALL REGIONS COAL STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED EIGHT POINT SEVEN NINE UP TWO POINT ONE FIVE OR TWO PERCENT WITH CYPRUS AMAX MINERALS OF THE U. S. POSTING A FOUR PERCENT GAIN IN ITS LOCAL CURRENCY COMMUNICATIONS WITH A. T. AND T. STOCKS TRAILED AT ONE HUNDRED FORTY FIVE POINT EIGHT FIVE DOWN THREE POINT FIVE SEVEN OR TWO POINT FOUR PERCENT WITH OKI ELECTRIC INDUSTRY OF JAPAN SLIDING THREE POINT TWO PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH DROPPED ONE HUNDRED SIXTY SIX POINT THREE ONE POINTS WEDNESDAY FELL SEVENTY FIVE POINT TWO ONE TO TWENTY THOUSAND ONE HUNDRED SEVENTY FOUR POINT EIGHT TWO IN TRADING ON FRIDAY THE NIKKEI INDEX ROSE TWENTY FIVE POINT SEVEN OH POINTS TO CLOSE THE MORNING SESSION AT TWENTY THOUSAND TWO HUNDRED POINT FIVE TWO THURSDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT FIVE HUNDRED FIFTY MILLION SHARES DOWN FROM SIX HUNDRED SIXTY NINE POINT FIVE MILLION SHARES A DAY EARLIER DECLINERS OUTNUMBERED ADVANCERS EIGHT HUNDRED EIGHT TO TWO HUNDRED FIFTY SEVEN THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH FELL FIFTEEN POINT FOUR FOUR POINTS WEDNESDAY DROPPED FOURTEEN POINT NINE THREE TO ONE THOUSAND SIX HUNDRED TWELVE POINT SEVEN THREE SOME ENTHUSIASM ABOUT THE JAPANESE GOVERNMENT'S UNVEILING OF LONG AWAITED STIMULATIVE TAX POLICIES WANED WHEN THE SOCIAL DEMOCRATIC PARTY INDICATED ITS OPPOSITION TO THE PROPOSALS MIGHT RESULT IN THE PARTY'S WITHDRAWAL FROM THE COALITION THE TAX MEASURES WERE LARGELY IN LINE WITH MARKET EXPECTATIONS LEAVING INVESTORS WITH LITTLE REASON TO PUSH SHARES HIGHER FOLLOWING SHARP GAINS EARLIER THIS WEEK THE SOCIAL DEMOCRATS' INTRANSIGENCE CAUSED MANY JAPANESE TO BE LEERY ABOUT THE GOVERNMENT'S FUTURE AND THEY SOLD STOCKS THE NIKKEI JUMPED AT THE OPENING BECAUSE OF THE TAX PROPOSALS BUT DRIFTED LOWER UNTIL MIDAFTERNOON WHEN BUYERS MOVED IN A LATE BURST OF FUTURES DRIVEN BUYING PUSHED THE BENCHMARK INDEX BACK UP IN THE FINAL MINUTES FOREIGN INVESTORS CONTINUED TO BUY SHARES BUT AT A SLOWER PACE ALSO CONTRIBUTING TO THE MARKET'S JITTERS WERE THE JAPANESE YEN'S CONTINUED STRENGTH AGAINST THE U. S. DOLLAR AND AN APPARENT LACK OF PROGRESS IN U. S. JAPAN TRADE TALKS AHEAD OF NEXT FRIDAY'S MEETING BETWEEN PRIME MINISTER MORIHIRO HOSOKAWA AND U. S. PRESIDENT BILL CLINTON IN LONDON AFTER SETTING A NEW HIGH WEDNESDAY THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX LOST TWENTY EIGHT POINT EIGHT POINTS TO THREE THOUSAND FOUR HUNDRED NINETY ONE POINT FIVE THE F. T. THIRTY STOCK INDEX DROPPED NINETEEN POINT SIX POINTS TO TWO THOUSAND SIX HUNDRED NINETY FOUR POINT OH VOLUME WAS ONE POINT OH NINE BILLION SHARES COMPARED WITH ONE POINT OH EIGHT BILLION SHARES A DAY EARLIER AFTER AN OPENING SURGE THAT TOOK THE F. T. ONE HUNDRED UP NINETEEN POINTS SENTIMENT WAS BATTERED ON NEWS THAT GERMANY'S MONEY SUPPLY ROSE LAST YEAR MUCH MORE THAN EXPECTED FANNING INFLATION FEARS AND INDICATING THE GERMAN BUNDESBANK THE CENTRAL BANK WILL BE SLOW TO LOWER INTEREST RATES WHICH COULD FAN PRESSURE ON CONSUMER PRICES FURTHER THEN AT MIDDAY THE BUNDESBANK SAID IT WASN'T CHANGING ITS KEY RATES DEALING ANOTHER BLOW TO THE LONDON BOURSE WHICH HOPES FOR A TANDEM BRITISH LENDING RATE CUT TO BOOST ECONOMIC RECOVERY IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX WHICH HAD GAINED FOR FIVE CONSECUTIVE SESSIONS SANK THIRTY TWO POINT TWO NINE POINTS OR ONE POINT FIVE PERCENT TO TWO THOUSAND ONE HUNDRED FIFTY ONE POINT SEVEN TWO ALSO THE INTRADAY LOW AFTER TRADING AS HIGH AS TWO THOUSAND ONE HUNDRED EIGHTY SEVEN POINT EIGHT EIGHT PRICES ALREADY UNDER PRESSURE FROM SOME PROFIT TAKING AND DISSATISFACTION WITH THE UNEXPECTEDLY HIGH EXPANSION OF GERMANY'S MONEY SUPPLY DIVED ON THE BUNDESBANK'S INACTION ON INTEREST RATES THOUGH MOST INVESTORS HADN'T EXPECTED THE CENTRAL BANK TO CUT ITS RATES SOME HAD BET OTHERWISE IN PARIS AFTER SCORING A RECORD HIGH THE DAY BEFORE SHARES FELL ACROSS THE BOARD IN HEAVY TRADING ON DISAPPOINTMENT THAT GERMAN MONETARY POLICY WASN'T EASED A PALL ALSO FELL OVER THE MARKET BECAUSE OF A PLUNGE IN FRENCH BOND PRICES AND FISHERMEN'S VIOLENT PROTESTS AGAINST INEXPENSIVE IMPORTS IN MILAN SHARES ENDED LOWER AFTER PROFIT TAKING CHIPPED AWAY AT EARLY GAINS AIDED BY MORE BUYING BY FOREIGN INVESTORS IN MADRID EQUITIES SLIPPED DAMPED BY THE LACK OF A RATE REDUCTION IN GERMANY IN STOCKHOLM PROFIT TAKING ALSO WAS TOUCHED OFF BY WEAKNESS IN OTHER MAJOR MARKETS AND HIGHER BOND AND MONEY MARKET YIELDS AND STOCKS ENDED AT THE DAY'S LOWS IN ZURICH SHARE PRICES FELL AFTER THE GERMAN MONEY SUPPLY FIGURES CAME IN HIGHER THAN ANTICIPATED IN MEXICO CITY EQUITIES ROSE ONE POINT FOUR PERCENT TO A RECORD ON CONFIDENCE ABOUT STRONG EARNINGS IN THE TELECOMMUNICATIONS SECTOR WHICH WOULD INDICATE AN ECONOMIC TURNAROUND HAD BEGUN IN THE FOURTH QUARTER IN SYDNEY STOCKS WERE PROPELLED TO NEW HIGHS BY STRONGER COMMODITY PRICES INCLUDING OIL SOLID CORPORATE EARNINGS AND STRONG BUYING BY FOREIGN INVESTORS IN HONG KONG DESPITE RELATIVELY UNEVENTFUL TRADING SHARES REBOUNDED MORE THAN RECOUPING THE PREVIOUS SESSION'S LOSSES AS PARTICIPANTS CONTINUED TO HOPE FOR A CHINESE NEW YEAR RALLY THE HOLIDAY IS NEXT THURSDAY IN SINGAPORE PRICES CLIMBED ALMOST ONE PERCENT IN SUBDUED ACTIVITY AS DEALINGS CONTINUED TO BE TECHNICALLY DRIVEN IN TAIPEI SHARES JUMPED ONE POINT SIX PERCENT IN HEAVY TRADING EVEN AFTER PROFIT TAKERS CLIPPED HUGE EARLIER GAINS IN THE FINAL HALF HOUR FINANCIAL ISSUES DOMINATED DEALINGS SURGING FOUR POINT THREE PERCENT WHILE OTHER SECTORS ENDED MIXED BULLISHNESS IN THE TAIPEI MARKET WHICH HAS POSTED GAINS IN SIX OF THE PAST SEVEN SESSIONS WAS SUSTAINED BY MORE REPORTS THAT THE TAIWAN GOVERNMENT WILL RAISE THE LIMIT ON FOREIGN INVESTMENT IN STOCKS IN MANILA SHARES GAINED ON NEWS THAT THE PHILIPPINE GROSS NATIONAL PRODUCT GREW TWO POINT THREE PERCENT LAST YEAR IN WELLINGTON STOCKS ROSE STRONGLY IN HEAVY TRADING LED BY FORESTRY ISSUES BUT IN SEOUL PRICES TUMBLED TWO PERCENT HURT BY THE THIRD SET OF MEASURES ANNOUNCED WEDNESDAY NIGHT BY THE SOUTH KOREAN GOVERNMENT TO CURB SPECULATIVE DEMAND FOR STOCKS WITH CASH ABUNDANT THE MARKET ATTEMPTED AN UPTURN AT MIDDAY BUT THIS FIZZLED UNDER THE WEIGHT OF THE MEASURES TO PREVENT OVERHEATING HIGH PRICED BLUE CHIPS AND CONSTRUCTION SHARES WERE HIT HARDEST THOUGH MEDIUM PRICED BLUE CHIPS AND SOME SMALL ISSUES ENDED HIGHER AMONG CORPORATE DEVELOPMENTS IN AMSTERDAM K. L. M. ROYAL DUTCH AIRLINES FINISHED AT FORTY EIGHT POINT TWO OH GUILDERS TWENTY FOUR DOLLARS AND EIGHTY TWO CENTS OFF EIGHTY CENTS PULLED DOWN BY THE WEAKER MARKET THOUGH THE CARRIER POSTED THIRD QUARTER PROFIT OF FIFTEEN MILLION GUILDERS SEVEN POINT SEVEN MILLION DOLLARS COMPARED WITH A YEAR EARLIER LOSS OF FOUR HUNDRED THIRTY SEVEN MILLION GUILDERS AND UNVEILED AN ISSUE OF TWENTY MILLION COMMON SHARES FOR MARCH IN SYDNEY NEWS CORPORATION SOARED FIFTY TWO CENTS OR FIVE POINT TWO PERCENT TO TEN POINT FIVE SIX AUSTRALIAN DOLLARS SEVEN U. S. DOLLARS AND FIFTY SIX CENTS ON HIGHER THAN EXPECTED EARNINGS FOR THE FIRST HALF ENDED DECEMBER THIRTY FIRST PROFIT JUMPED SEVENTY PERCENT TO SEVEN HUNDRED SIXTY EIGHT POINT NINE MILLION AUSTRALIAN DOLLARS FIVE HUNDRED FIFTY POINT ONE MILLION U. S. DOLLARS FROM A YEAR EARLIER 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END THE PHILIPPINES ONE OF ASIA'S FASTEST GROWING TRAVEL MARKETS MAY BE OUT OF REACH FOR THOUSANDS OF TOURISTS DURING ITS BUSIEST HOLIDAY SEASON OF THE YEAR FLIGHT ATTENDANTS AT PHILIPPINE AIRLINES HAVE THREATENED TO STRIKE NEXT WEEK UNLESS THEIR DEMANDS FOR BETTER WORKING CONDITIONS ARE MET THE WALKOUT WOULD COINCIDE WITH LUNAR NEW YEAR CELEBRATIONS AND DAMP TOURISM IN A COUNTRY STRUGGLING TO RE ESTABLISH ITSELF AS A PRIME TRAVEL DESTINATION LEADERS OF THE FLIGHT ATTENDANTS AND STEWARDS ASSOCIATION OF THE PHILIPPINES SAID AT A NEWS CONFERENCE IN MANILA ON WEDNESDAY THAT AN OVERWHELMING NUMBER OF PAL'S ONE THOUSAND EIGHT HUNDRED FOURTEEN FLIGHT ATTENDANTS HAD VOTED FOR A STOPPAGE THE PILOTS UNION AND THE GROUND EMPLOYEES ASSOCIATION SAID THEY BACKED THE FLIGHT ATTENDANTS PAL SAID IT WAS QUOTE SADDENED BY THE ANNOUNCEMENT QUOTE BUT ADDED THAT AIRLINE EXECUTIVES WOULD MEET WITH UNION REPRESENTATIVES AGAIN IN AN ATTEMPT TO AVERT A STOPPAGE A COMPANY SPOKESWOMAN SAID THE DEPARTMENT OF LABOR WILL MEDIATE THE DISPUTE DATES TO DECEMBER WHEN THE AIRLINE LAUNCHED NONSTOP FLIGHTS BETWEEN MANILA AND LOS ANGELES REQUIRING ITS STAFF TO WORK BEYOND AN AGREED UPON LIMIT OF FOURTEEN HOURS AT A STRETCH PAL SUSPENDED SEVENTY ONE FLIGHT ATTENDANTS WHO REFUSED TO FLY THE LONG HAUL FLIGHT LAST MONTH BUT ABOUT TWENTY HAVE RETURNED A UNION SPOKESWOMAN SAID THE FLIGHT ATTENDANTS UNION IS ALSO DEMANDING WAGES MORE IN LINE WITH THOSE PAID BY OTHER ASIAN CARRIERS A UNION SPOKESWOMAN SAID THAT THE STARTING MONTHLY SALARY FOR A PAL FLIGHT ATTENDANT IS ABOUT TWO HUNDRED SIXTY DOLLARS COMPARED WITH ABOUT ONE THOUSAND DOLLARS FOR A RECRUIT AT HONG KONG BASED CATHAY PACIFIC AIRWAYS A STRIKE WOULD CRIPPLE PAL AND HURT TOURISM IN THE PHILIPPINES DURING THE PEAK SEASON FOR VISITS FROM NEIGHBORING COUNTRIES AFTER A LONG DRY SPELL THE RETURN OF POLITICAL STABILITY HELPED BOOST TOURIST ARRIVALS LAST YEAR TO A RECORD ONE POINT FOUR MILLION UP ABOUT TWENTY PERCENT FROM NINETEEN NINETY TWO THIS YEAR THE DEPARTMENT OF TOURISM IS AIMING FOR A FIFTEEN PERCENT GAIN TO ONE POINT SIX MILLION PEOPLE WHO HAD SHIED AWAY BECAUSE OF NATIONAL CALAMITIES AND POLITICAL UNCERTAINTIES WERE STARTING TO VISIT SAID JAMES KAPLAN MANAGING DIRECTOR OF KAPLAN CONSULTANCY WHICH SPECIALIZES IN EMERGING TOURISM MARKETS A STRIKE IS THE KIND OF THING THAT WILL TURN SOME PEOPLE OFF DURING JANUARY NINETEEN NINETY THREE IN WHICH LAST YEAR'S LUNAR NEW YEAR FELL ABOUT SIXTY TWO THOUSAND EAST ASIANS VISITED THE COUNTRY COMPARED WITH THIRTY THOUSAND TO FORTY THOUSAND IN OTHER MONTHS ACCORDING TO OFFICIAL FIGURES ABOUT HALF OF THE VISITORS ARRIVED ON PAL FLIGHTS NEWS OF A POSSIBLE WALKOUT SENT PEOPLE BOOKED ON PAL SCURRYING TO FIND SEATS ON OTHER CARRIERS I CAN'T GET A SEAT ON ANY FLIGHT OUT OF HERE WAILED LUZ LORENZO A SENIOR ECONOMIST AT PEREGRINE BROKERAGE LIMITED IN HONG KONG WHO IS BOOKED ON A PAL FLIGHT TO MANILA NEXT WEDNESDAY IT LOOKS LIKE I MIGHT GET STUCK HERE FOR MANY TRAVELERS IT BRINGS BACK BAD MEMORIES OF LAST YEAR'S LUNAR NEW YEAR WHEN CATHAY'S THREE THOUSAND EIGHT HUNDRED MEMBER FLIGHT ATTENDANTS UNION LAUNCHED A SEVENTEEN DAY STRIKE THEY'RE TAKING THEIR CUE FROM CATHAY PACIFIC SAID JIM ECKES DIRECTOR OF INDOSWISS AVIATION A REGIONAL AIRLINE CONSULTANCY QUOTE THEY'RE PICKING THE OPTIMUM TIME TO TRY AND SQUEEZE THE MOST OUT OF THE AIRLINE QUOTE THE SECURITIES AND EXCHANGE COMMISSION SAID IT OBTAINED AN EIGHTY NINE MILLION DOLLAR JUDGMENT IN BRITISH COURT AGAINST EDDIE ANTAR FOUNDER OF THE NOWDEFUNCT CRAZY EDDIE INCORPORATED CONSUMER ELECTRONICS CHAIN THE JUDGMENT WILL ALLOW THE S. E. C. TO ATTEMPT TO COLLECT MONEY FROM MR. ANTAR'S HOLDINGS IN BRITAIN ACCORDING TO S. E. C. LAWYER RICHARD WALLACE THE S. E. C. ALLEGING FEDERAL SECURITIES VIOLATIONS OBTAINED A SEVENTY THREE POINT FIVE MILLION DOLLAR JUDGMENT AGAINST MR. ANTAR IN THE U. S. IN JULY NINETEEN NINETY WITH INTEREST THE JUDGMENT NOW TOTALS EIGHTY NINE MILLION DOLLARS HOWEVER IT WASN'T ENFORCEABLE WITHOUT FOREIGN COURT ORDERS MR. ANTAR WHO WAS EXTRADITED FROM ISRAEL ABOUT A YEAR AGO WAS CONVICTED IN THE U. S. OF STOCK FRAUD AND RACKETEERING FOR INFLATING CRAZY EDDIE'S MARKET VALUE THROUGH PHONY SALES AND INVENTORY REPORTS NOW IN FEDERAL PRISON HE CONTINUES TO FIGHT CIVIL CASES PENDING AGAINST HIM IN BRITAIN ISRAEL AND SWITZERLAND THE S. E. C. SAID MR. ANTAR IS APPEALING THE BRITISH COURT'S JUDGMENT THAT WAS ENTERED LAST WEEK PARIS BASED CATERING GROUP ABELA CORPORATION LODGED A FORMAL COMPLAINT WITH THE EUROPEAN UNION COMMISSION ON WEDNESDAY AGAINST OLYMPIC AIRWAYS OF GREECE TO BLOCK THE AIRLINE'S APPLICATION FOR A ONE POINT TWO BILLION DOLLAR DEBT WRITE OFF ABELA ACCUSED OLYMPIC OF VIOLATING SEVERAL E. U. LAWS BY BREAKING CONTRACTS THAT WOULD HAVE GIVEN ABELA A MAJORITY STAKE IN THE GREEK AIRLINE'S CATERING UNIT THE MOVE FOLLOWS AN ANNOUNCEMENT IN JANUARY BY ABELA OF ITS PLAN TO FILE A LAWSUIT IN A GREEK COURT SEEKING AS MUCH AS TWENTY FIVE MILLION DOLLARS IN DAMAGES FROM OLYMPIC AND A FURTHER ACTION IN GENEVA CLAIMING AS MUCH AS SEVENTY FIVE MILLION DOLLARS ABELA CLAIMS THAT THE AIRLINE BROKE A NINETEEN NINETY ONE AGREEMENT UNDER WHICH IT BOUGHT FORTY NINE PERCENT OF OLYMPIC CATERING FOR FOURTEEN MILLION DOLLARS UNDER THAT DEAL ABELA WAS EVENTUALLY TO TAKE AN ADDITIONAL SEVENTEEN PERCENT THROUGH AN OPTION BUT WHEN ABELA SOUGHT TO EXCERCISE THAT OPTION LAST SEPTEMBER AFTER RESTORING THE CATERING UNIT TO PROFITABILITY OLYMPIC REFUSED THE DEAL AND SOON AFTER DISMISSED SENIOR MANAGERS AND BOARD MEMBERS INSTALLED BY THE PARISIAN COMPANY QUOTE WHAT WE ARE SAYING IS THAT THEY HAVE RENATIONALIZED THE COMPANY THROUGH THE BACK DOOR QUOTE ALLEGED ALEXIS SACRE FORMERLY ABELA'S CHIEF REPRESENTATIVE AT OLYMPIC CATERING WE FEEL THE COMPANY TODAY IS WORTH AT LEAST SEVENTY FIVE MILLION DOLLARS WE'LL BE BACKING IT UP WITH ACCOUNTS OR WHATEVER IT TAKES ON TUESDAY GREEK NEWSPAPERS PRINTED A MEMO SENT TO OLYMPIC EMPLOYEES IN WHICH THE AIRLINE MANAGEMENT SAID THAT ITS DEBTS WOULD SOON REACH ABOUT FIVE HUNDRED THIRTY BILLION DRACHMAS TWO POINT ONE THREE BILLION DOLLARS AND THAT THE AIRLINE WOULD HAVE TO SHUT DOWN IF ITS REQUEST TO WRITE OFF ABOUT HALF THAT IS BLOCKED BY THE E. U. COMMISSION IN A GAMBIT TO ATTRACT HISPANIC TELEVISION VIEWERS IN THE U. S. A REGIONAL SPORTS NETWORK WILL LAUNCH THE FIRST NATIONAL SPANISH LANGUAGE SPORTS CABLE T. V. NETWORK IN LATE NINETEEN NINETY FOUR PRIME TICKET NETWORK WHICH IS MAJORITY OWNED BY CABLE PIONEER BILL DANIELS WILL UNVEIL PLANS NEXT WEEK FOR QUOTE LA CADENA DEPORTIVA NACIONAL QUOTE THE NATIONAL SPORTS NETWORK THE COMPANY IS TRYING TO CONVINCE CABLE OPERATORS IT CAN REPLICATE THE EARLY SUCCESS OF ITS REGIONAL SPANISH LANGUAGE NETWORK LA CADENA DEPORTIVA PRIME TICKET WHICH IT LAUNCHED IN THE FALL TO SOME SEVEN HUNDRED THOUSAND HOMES IN SOUTHERN CALIFORNIA THE AD SUPPORTED NETWORK JOINS A GROWING LIST OF U. S. PROGRAMMERS TRYING TO COURT THE NATION'S TWENTY FOUR MILLION HISPANICS GENERAL ELECTRIC COMPANY'S N. B. C. UNIT VIACOM INCORPORATED'S M. T. V. AND TIME WARNER'S HOME BOX OFFICE HAVE ALL STAKED CLAIMS ON THE U. S. HISPANIC MARKET WITH SPANISH LANGUAGE VERSIONS OF THEIR SERVICES WE BELIEVE THE DEMAND IS THERE AND THE TIME IS RIGHT SAID ROGER WERNER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PRIME TICKET AND FORMER PRESIDENT OF E. S. P. N. THE ENGLISH LANGUAGE NATIONAL SPORTS CABLE NETWORK MR. WERNER IS PROMISING THE NEW SPANISH LANGUAGE NETWORK WHICH WILL TARGET MEN CAN DRAW NEW REVENUES TO CABLE OPERATORS WHICH ARE NOW FACING SLOW SUBSCRIBER GROWTH STRICT FEDERAL RATE REGULATIONS AND THE MASSIVE COST OF UPGRADING THEIR SYSTEMS HISPANICS MAKE UP NEARLY TEN PERCENT OF THE U. S. POPULATION THEIR NUMBERS ARE GROWING AT SEVEN TIMES THE NATIONAL AVERAGE AND THEY HAVE AN AGGREGATE BUYING POWER OF TWO HUNDRED SIX BILLION DOLLARS ACCORDING TO THE U. S. CENSUS BUREAU THE GROUP IS SPREAD OUT IN SIX POINT FIVE MILLION HOMES CONCENTRATED IN CALIFORNIA TEXAS NEW YORK AND FLORIDA BUT MR. WERNER SAYS THAT CABLE PENETRATION IN HISPANIC HOUSEHOLDS IS ONLY ABOUT EIGHTEEN PERCENT IN SOUTHERN CALIFORNIA COMPARED WITH OVER FIFTY FIVE PERCENT FOR ANGLO AMERICANS AND NATIONAL FIGURES ARE COMPARABLE LA CADENA DEPORTIVA NACIONAL HAS ALREADY SECURED EXCLUSIVE U. S. RIGHTS FOR MORE THAN FOUR HUNDRED INTERNATIONAL SOCCER GAMES FROM MEXICO SPAIN ARGENTINA AND OTHER COUNTRIES AND IT WILL RUN OVER ONE THOUSAND FIVE HUNDRED HOURS OF BOXING MATCHES AUTO RACING AND LIFESTYLE AND NEWS SHOWS BUT SOME WONDER IF THE NEW NETWORK HAS ENOUGH TOP RATED SPORTS PROGRAMMING TO BUILD AN AUDIENCE THEY DON'T HAVE ENOUGH PRODUCT TO INTEREST ENOUGH PEOPLE SAYS STEPHEN HAMMOND A SPOKESMAN FOR UNIVISION TELEVISION NETWORK UNIVISION THE LARGEST SPANISH LANGUAGE T. V. NETWORK REACHES OVER NINETY PERCENT OF U. S. HISPANIC T. V. HOMES AND OWNS THE RIGHTS TO THE POPULAR NINETEEN NINETY FOUR WORLD CUP ROBIN LOREY DIDN'T EVEN KNOW WHAT ARBITRATION WAS WHEN SHE AGREED TO WAIVE HER RIGHT TO A JURY TRIAL AS A MEMBER OF THE KAISER PERMANENTE HEALTH MAINTENANCE ORGANIZATION BUT LIKE MORE THAN FIVE MILLION OTHERS WHO BELONG TO THE COUNTRY'S BIGGEST H. M. O. MS. LOREY HAD NO CHOICE KAISER REQUIRES ALL OF ITS MEMBERS IN CALIFORNIA COLORADO HAWAII AND MASSACHUSETTS TO AGREE TO ARBITRATE MEDICAL MALPRACTICE CLAIMS AND OTHER DISPUTES RATHER THAN TAKE THEM TO COURT SO WHEN MS. LOREY CLAIMED THAT A SPINAL PROCEDURE DONE DURING THE DELIVERY OF HER THIRD CHILD IN NINETEEN NINETY ONE CAUSED BACK PROBLEMS SHE HAD TO TAKE HER CASE AGAINST KAISER NOT TO A JUDGE AND JURY BUT TO THREE PRIVATE ARBITRATORS SEATED IN A SMALL CONFERENCE ROOM AND WHEN THE ARBITRATORS LAST MONTH RULED AGAINST MS. LOREY A THIRTY THREE YEAR OLD NURSE FROM SUN CITY CALIFORNIA SHE HAD NO RIGHT TO APPEAL AS CONGRESS CONSIDERS A VARIETY OF MEDICAL MALPRACTICE REFORMS KAISER'S TRACK RECORD AND THE EXPERIENCE OF PEOPLE SUCH AS MS. LOREY ARE CERTAIN TO COME UNDER SCRUTINY THAT RECORD SUGGESTS THAT LIKE ALMOST EVERY OTHER ISSUE IN THE HEALTH CARE DEBATE ARBITRATION INVOLVES SOME DIFFICULT TRADE OFFS KAISER HAS ASKED PATIENTS TO FORFEIT SOME OF THEIR RIGHTS BUT IN SO DOING IT HAS MANAGED BOTH TO CUT ITS LEGAL COSTS AND TO COMPENSATE A SIGNIFICANT PERCENTAGE OF INJURED PEOPLE MORE THAN A DOZEN STATES ALREADY HAVE PASSED LAWS MAKING IT EASIER FOR HEALTH PLANS TO USE ARBITRATION A METHOD THAT IS COMMON IN A VARIETY OF SECURITIES CONSTRUCTION AND CONTRACT DISPUTES CONSEQUENTLY A GROWING NUMBER OF HOSPITALS AND H. M. O.S ARE ALLOWING THEIR PATIENTS TO CHOOSE ARBITRATION THOUGH VERY FEW REQUIRE THEM TO DO SO THE CLINTON HEALTH PLAN PROPOSES MORE USE OF MEDIATION AND ARBITRATION IN MEDICAL MALPRACTICE SUITS BUT WOULD GUARANTEE COURT APPEALS OF THE RESULTS SO FAR ONLY A PROPOSAL BY SENATOR PETE DOMENICI R. N. M. WOULD MANDATE THAT MOST AMERICANS SUBMIT TO THE KIND OF BINDING ARBITRATION THAT KAISER REQUIRES THE KAISER APPROACH CERTAINLY DESERVES PRAISE FOR SPEEDY RESOLUTIONS THE CASES THE H. M. O. ARBITRATES ARE TYPICALLY RESOLVED IN ABOUT NINETEEN MONTHS COMPARED WITH AN AVERAGE OF THIRTY THREE MONTHS FOR MALPRACTICE LAWSUITS HANDLED BY THE COURT SYSTEM ACCORDING TO A NINETEEN NINETY TWO U. S. GENERAL ACCOUNTING OFFICE REPORT BASED ON INFORMATION PROVIDED BY KAISER ARBITRATION QUOTE REDUCES THE COST OF LITIGATION PRETTY SUBSTANTIALLY AND THEREFORE WE'RE ABLE TO OFFER OUR MEMBERS A BETTER DEAL IN TERMS OF THE COST OF CARE OVERALL QUOTE SAYS TRISHA O'HANLON SENIOR COUNSEL FOR KAISER'S SOUTHERN CALIFORNIA REGION KAISER ALSO CREDITS ARBITRATION WITH COMPENSATING A LARGER PERCENTAGE OF INJURED PATIENTS THAN JURIES DO THOUGH USUALLY IN MORE MODEST AMOUNTS THE H. M. O. ESTIMATES THAT PLAINTIFFS WIN ABOUT HALF ITS ARBITRATIONS COMPARED WITH ABOUT A THIRD OF ALL MALPRACTICE CASES IN THE COURT SYSTEM AND WITH ARBITRATION YOU DON'T HAVE ONE HUNDRED MILLION DOLLARS VERDICTS ON A BAD BABY CASE SAYS MS. O'HANLON KAISER DECLINED HOWEVER TO PROVIDE DATA ON THE SIZE OF THE AVERAGE ARBITRATION AWARD IT'S TYPICALLY FASTER THAN A TRIAL BECAUSE IT'S LESS FORMALIZED SAYS PAUL WEILER A HARVARD LAW SCHOOL MALPRACTICE SPECIALIST THERE IS AN EXPERT WHO'S MAKING THE DECISION WHICH WILL GIVE YOU MORE PREDICTABLE AND MORE RATIONAL RESULTS BUT MANY PATIENTS SUCH AS MS. LOREY HAVEN'T READ ALL THE FINE PRINT IN THEIR EMPLOYER PROVIDED HEALTH PLANS INCLUDING THE PROVISION ABOUT ARBITRATION MS. LOREY SAYS SHE DIDN'T LEARN ABOUT THE ARBITRATION AGREEMENT UNTIL THE DAY SHE WAS ADMITTED TO THE HOSPITAL FOR THE DELIVERY OF HER CHILD MS. LOREY'S CASE WAS HEARD IN A CONFERENCE ROOM NEAR SAN DIEGO WHERE THE PLAINTIFF SAT SURROUNDED BY SIX LAWYERS AND ARBITRATORS IN THE CASE IT'S SUCH A CLOSED SETTING MS. LOREY SAYS I FELT PRETTY GANGED UP ON PRETTY INTIMIDATED KAISER DROPPED ITS ARBITRATION REQUIREMENT IN NINETEEN NINETY ONE IN OREGON AND WASHINGTON PARTLY BECAUSE IT WAS UNDER PRESSURE FROM COMPANIES THERE THAT THOUGHT THEIR EMPLOYEES MIGHT OBJECT TO THE PROVISION BUT IN GENERAL KAISER DEFENDS THE ARBITRATION PROCESS SAYING ONE BENEFIT IS ITS LACK OF FORMALITY IT IS QUOTE DIFFICULT TO BELIEVE THAT SOMEONE WOULD FIND IT MORE INTIMIDATING TO SIT IN A ROOM WITH PEOPLE SITTING AROUND A TABLE THAN TO GO INTO A COURTROOM WITH A BOX FULL OF PEOPLE THAT YOU DON'T KNOW AND A JUDGE SITTING UP IN A THRONE LIKE SEAT QUOTE SAYS MS. O'HANLON THE KAISER LAWYER SHE ALSO SAYS KAISER IS TRYING TO MAKE PATIENTS MORE AWARE OF THE ARBITRATION REQUIREMENT IN PUBLICATIONS SENT TO MEMBERS IN A KAISER HEARING THE PATIENT AND THE H. M. O. EACH SELECT ONE ARBITRATOR TYPICALLY A LAWYER OR A RETIRED JUDGE AND A THIRD IS CHOSEN WITH THE CONSENT OF BOTH SIDES TO SERVE AS A NEUTRAL TIE BREAKER EACH PARTY HAS ITS OWN LEGAL REPRESENTATION AND PAYS ITS OWN ARBITRATOR AN HOURLY FEE THE TWO SIDES SPLIT THE NEUTRAL ARBITRATOR'S BILL WHICH CAN RUN AS HIGH AS THREE HUNDRED FIFTY DOLLARS AN HOUR EVIDENCE SUCH AS THAT PROVIDED BY MEDICAL EXPERTS IS PRESENTED MUCH THE WAY IT WOULD BE IN A COURTROOM THE NEED FOR A NEUTRAL ARBITRATOR IN EVERY CASE HAS RAISED ANOTHER PRACTICAL PROBLEM FOR KAISER FINDING ENOUGH OF THEM WHO DON'T HAVE CONFLICTS OF INTEREST THAT WAS THE ISSUE HIGHLIGHTED IN THE CASE OF THE LATE FREYA NEAMAN WHOSE FAMILY SUED KAISER FOR ALLEGEDLY FAILING TO PROMPTLY DIAGNOSE HER LUNG CANCER MS. NEAMAN'S FAMILY LOST THE ARBITRATION BUT LAST YEAR THEY GOT THE CALIFORNIA SUPREME COURT TO THROW OUT THE RULING BECAUSE THE NEUTRAL ARBITRATOR A RETIRED JUDGE HADN'T DISCLOSED THAT HE HAD SERVED AS KAISER'S OWN ARBITRATOR IN FIVE PREVIOUS CASES THE BAN ON APPEALING ARBITRATIONS GENERALLY CAN BE LIFTED IF THERE IS EVIDENCE OF BIAS OR FRAUD THE JUDGE'S RELATIONSHIP WITH KAISER WAS A SUBSTANTIAL BUSINESS RELATIONSHIP AND SHOULD HAVE BEEN FULLY DISCLOSED THE COURT SAID KAISER SAYS IT IS MAKING MORE EFFORTS TO ENSURE THAT NEUTRAL ARBITRATORS ARE TRULY UNBIASED BUT WITH A LIMITED POOL OF EXPERIENCED ARBITRATORS SOME LAWYERS BELIEVE IT WILL BE INCREASINGLY DIFFICULT TO FIND PEOPLE WITHOUT TIES TO KAISER IT'S BAD ENOUGH THAT I LOST MY MOTHER SAYS BLYTHE LEIDERMAN MS. NEAMAN'S DAUGHTER WHO IS NOW TRYING TO GET A COURT HEARING FOR THE CASE THEN TO FIND OUT THAT THE PERSON WHO WAS SUPPOSED TO BE OBJECTIVE AND NEUTRAL REALLY WASN'T THAT REALLY HURTS A FEDERAL COURT RULING THAT WOULD FORCE GENERAL MOTORS CORPORATION TO REINSTATE FULL HEALTH CARE BENEFITS FOR FIFTY THOUSAND EARLY RETIREES COULD COST G. M. TENS OF MILLIONS OF DOLLARS U. S. DISTRICT JUDGE JOHN FEIKENS OF DETROIT RULED WEDNESDAY THAT G. M. BROKE A CONTRACT WITH EARLY RETIREES BY IMPOSING HEALTH CARE DEDUCTIBLES AND COPAYMENTS BEGINNING IN NINETEEN EIGHTY EIGHT THE ONE HUNDRED NINETEEN PAGE RULING COVERS G. M. EMPLOYEES WHO TOOK EARLY RETIREMENTS FROM NINETEEN SEVENTY FOUR TO NINETEEN EIGHTY EIGHT QUOTE I FIND THAT G. M. ENTERED INTO CONTRACTS WITH ITS EARLY RETIREES WHICH VESTED IN THE RETIREES AND THEIR SPOUSES CERTAIN HEALTH CARE BENEFITS FOR THEIR LIFETIMES AT NO COST TO THEM JUDGE FEIKENS WROTE THE RULING MAY PUSH THE LIMITS OF WHAT RETIREES IN OTHER COMPANIES CAN DEMAND UNDER EMPLOYEE BENEFITS LAW THOUGH THE FACT THAT THIS WAS A LOWER COURT RULING LESSENS THE IMMEDIATE IMPACT OF THE DECISION BEYOND THE FACTS OF THE CASE G. M. IS CONSIDERING AN APPEAL G. M. SAID IT WAS PREMATURE TO SPECULATE HOW MUCH MONEY IT MIGHT HAVE TO PAY AS A RESULT OF THE RULING OR WHETHER G. M. WOULD REQUIRE A CHARGE TO COVER IT UNTIL NINETEEN EIGHTY EIGHT G. M. RETIREES HAD ENJOYED ALMOST FREE HEALTH CARE BENEFITS BUT IN THAT YEAR AS PART OF A COST CUTTING MOVE G. M. TOLD FAMILIES THEY WOULD BE RESPONSIBLE FOR AS MUCH AS SEVEN HUNDRED FIFTY DOLLARS A YEAR IN OUT OF POCKET MEDICAL EXPENSES IF THEY REMAINED IN TRADITIONAL INSURANCE PLANS THE CLASS ACTION LAWSUIT INITIATED BY G. M. RETIREES IN THE FLINT MICHIGAN AREA WAS FILED SHORTLY AFTERWARD BY EIGHTY FOUR THOUSAND RETIREES IN NINETEEN NINETY ONE JUDGE FEIKENS RULED THAT G. M. HAD ACTED WITHIN ITS RIGHTS IN SLASHING BENEFITS FOR THIRTY FOUR THOUSAND RETIREES WHO HAD TAKEN NORMAL RETIREMENT HIS RULING WEDNESDAY APPLIES TO THE FIFTY THOUSAND G. M. SALARIED WORKERS WHO RETIRED UNDER VARIOUS EARLY RETIREMENT PLANS BEFORE NINETEEN EIGHTY EIGHT THE RULING DOESN'T AFFECT G. M.'S RETIRED HOURLY EMPLOYEES WHO STILL ENJOY FULL MEDICAL BENEFITS IN SOME EMPLOYEE HANDBOOKS THE JUDGE CONCLUDED IN THE LATEST RULING G. M. DIDN'T CLEARLY STATE THAT IT MIGHT CUT OFF THE BENEFITS AND SOME INTERNAL G. M. MEMOS ASSURED RETIREES THAT THEY WOULD HAVE HEALTH BENEFITS FOR LIFE IN ADDITION THE JUDGE SAID SOME EMPLOYEES DIDN'T BELIEVE THE HANDBOOKS APPLIED TO THEM AND SOME THOUGHT THAT LANGUAGE PERMITTING G. M. TO CHANGE HEALTH BENEFITS MEANT ONLY THAT BENEFITS MIGHT BE UPGRADED JUDGE FEIKENS ALSO SAID RELEASES THAT EMPLOYEES SIGNED WHEN THEY RETIRED WERE IN EFFECT CONTRACTS WITH G. M. NEAL TEMPLIN AND JUNDA WOO CONTRIBUTED TO THIS ARTICLE PRODIGY SERVICES COMPANY STAGED AN UNUSUAL NEWS CONFERENCE TO TAKE A TACIT SWIPE AT ITS UPSTART RIVAL AMERICA ONLINE INCORPORATED A TOP PRODIGY EXECUTIVE HOSTED A CONFERENCE CALL WITH REPORTERS TO BRAG ABOUT THE PRODIGY ON LINE SYSTEM'S ABILITY TO SERVE HUGE NUMBERS OF USERS EARLIER THIS WEEK AMERICA ONLINE TOLD CUSTOMERS IT WOULD HAVE TO RATION ACCESS TO ITS COMPUTER SERVICE DURING PEAK HOURS BECAUSE RAPID GROWTH HAD OVERWHELMED ITS ABILITY TO SERVE ALL USERS THE BROADSIDE WAS A SIGN OF THE SCRAP BREAKING OUT IN THE BURGEONING MARKET FOR ON LINE COMPUTER SERVICES PRODIGY HAS DEEP POCKETS AND ONE MILLION HOUSEHOLDS BUT IT HAS YET TO TURN A PROFIT AFTER ABOUT FIVE YEARS OF OPERATION AMERICA ONLINE BY CONTRAST IS INDEPENDENT HAS SIX HUNDRED THOUSAND SUBSCRIBERS AND IS A WALL STREET DARLING POSTING PROFITS RELATIVELY EARLY AND GOING PUBLIC IN A HUGELY SUCCESSFUL OFFERING SCOTT KURNIT EXECUTIVE VICE PRESIDENT AT PRODIGY SAID IN THE CONFERENCE CALL THAT HIS ON LINE SERVICE QUOTE COULD ACTUALLY HANDLE ALL OF THE FORTY MILLION PERSONAL COMPUTERS THAT ARE CURRENTLY IN HOUSEHOLDS QUOTE WHILE HE AVOIDED NAMING AMERICA ONLINE EXPRESSLY HE CHALLENGED REPORTERS TO CHECK OUT PRODIGY'S HARDWARE STRENGTH AND COMPARE IT WITH AN UNNAMED RIVAL LOOK AT US AND LOOK AT THEM AND SEE HOW THEY'RE BUILT AND KICK THE TIRES PRODIGY A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORPORATION AND SEARS ROEBUCK AND COMPANY ALSO RAN T. V. COMMERCIALS SIX TIMES WEDNESDAY NIGHT STRESSING A SIMILIAR MESSAGE THE SPOTS BEGAN WITH AN ACTRESS MENTIONING THAT SOME PEOPLE ARE HAVING TROUBLE GETTING ONTO THE ELECTRONIC SUPERHIGHWAY THAT BROUGHT A PHILOSOPHICAL RESPONSE FROM STEVE CASE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF VIENNA VIRGINIA BASED AMERICA ONLINE I'D SAY ALL'S FAIR IN LOVE AND WAR AMERICA ONLINE'S SUBSCRIBER BASE HAS MORE THAN DOUBLED IN THE PAST YEAR ANALYSTS ESTIMATE IT NEEDS TO BE ABLE TO SERVE AS MANY AS SIXTEEN THOUSAND CUSTOMERS DURING PEAK USAGE BUT THAT IT CAN TAKE ONLY EIGHT THOUSAND MR. CASE DISPUTES THOSE NUMBERS BUT WON'T SAY WHETHER THEY ARE TOO HIGH OR TOO LOW WHEN THE SYSTEM OVERLOADS CUSTOMERS CAN GET BUSY SIGNALS OR SLOW RESPONSES THE PERFORMANCE IS VERY SLOW SAID MICHAEL B. WILLIAMS A SOFTWARE ENGINEER IN WALTHAM MASSACHUSETTS WHO IS A FREQUENT USER OF ON LINE SERVICES IF SERVICE DOESN'T IMPROVE HE SAID HE WILL CANCEL HIS MEMBERSHIP RATHER THAN ASK FOR THE PERIODIC REFUNDS THE COMPANY HAS PROMISED TO PAY MR. CASE SAID AMERICA ONLINE HAS HIRED STAFF ACQUIRED EXTRA COMPUTER GEAR AND MODIFIED THE NETWORK SOFTWARE AND HOPES TO SOLVE THE PROBLEM WITHIN TWO MONTHS HE ALSO SAID THE COMPANY WILL TEMPORARILY CURB SOME EFFORTS TO SIGN UP SUBSCRIBERS WE'RE HOLDING BACK ON DIRECT MARKETING FORGOING MAILED PITCHES UNTIL THE OVERLOAD PROBLEMS ARE FIXED BUT THERE IS STILL DEMAND IN THE PIPELINE AND WE INTEND TO MEET THAT DEMAND HE SAID ANALYSTS STRESS THAT AMERICA ONLINE MUST ACT QUICKLY SAYS MARK STAHLMAN OF NEW MEDIA ASSOCIATES A CONSULTING FIRM QUOTE IT'S CRUCIAL THAT THEY RETAIN THE SUBSCRIBERS THEY ALREADY HAVE QUOTE JOHN G. MEDLIN JUNIOR SIXTY WAS NAMED A DIRECTOR OF THIS MEDIA COMPANY FILLING A VACANCY ON THE NINE MEMBER BOARD HE IS CHAIRMAN AT WACHOVIA CORPORATION A BANK HOLDING COMPANY IN WINSTON SALEM N. C. ROBERT E. ALLEN THE FIFTY NINE YEAR OLD CHAIRMAN OF AMERICAN TELEPHONE AND TELEGRAPH COMPANY WAS NAMED TO THE BOARD OF THIS AUTO MAKER EXPANDING BOARD MEMBERSHIP FROM TO FOURTEEN CHRYSLER'S CHAIRMAN ROBERT J. EATON SAID THAT A. T. AND T. HAS QUOTE GONE THROUGH THE KIND OF CULTURAL CHANGES THAT CHRYSLER IS NOW WORKING ON QUOTE AND THAT MR. ALLEN WILL HELP GUIDE CHRYSLER THROUGH ITS CONTINUING QUOTE PROCESS OF INTERNAL CHANGE AND IMPROVED COMPETITIVENESS QUOTE MR. ALLEN WAS ELECTED A MEMBER OF THE BOARD'S FINANCE AND NOMINATING COMMITTEES HE ALSO SITS ON THE BOARD OF THE FEDERAL RESERVE BANK OF NEW YORK PEPSICO INCORPORATED AND BRISTOL MYERS SQUIBB COMPANY SEPARATELY JAMES D. DONLON THE THIRD FORTY SEVEN CHRYSLER'S CONTROLLER WAS ELECTED A VICE PRESIDENT HE WILL CONTINUE TO SERVE AS CONTROLLER LEGISLATION WRITTEN BY REPRESENTATIVE JIM COOPER D. TENNESSEE GAINED NEW ATTENTION THIS WEEK WHEN THE BUSINESS ROUNDTABLE SUPPORTED IT AS A QUOTE STARTING POINT QUOTE FOR CONGRESSIONAL DELIBERATIONS ON HEALTH CARE TO MANY PEOPLE THE COOPER BILL HAS BECOME THE LEADING ALTERNATIVE TO PRESIDENT CLINTON'S HEALTH PLAN THE RALLYING SYMBOL FOR THOSE WHO CONSIDER THE WHITE HOUSE PROPOSAL TO BE TOO RICH TOO REGULATORY AND TOO BUREAUCRATIC BUT TO OTHERS INCLUDING THE ADMINISTRATION THE COOPER PLAN IS TOO TIMID AND TOO VAGUE COVERAGE THE CLINTON BILL WOULD GUARANTEE HEALTH COVERAGE FOR ALL AMERICANS THE COOPER BILL WOULDN'T ALTHOUGH ITS AUTHORS ARGUE IT WOULD REMOVE SO MANY OBSTACLES THAT NEARLY EVERYONE COULD OBTAIN HEALTH INSURANCE UNDER THE WHITE HOUSE PLAN ALL EMPLOYERS WOULD BE REQUIRED TO PAY ON BEHALF OF EACH FULL TIME WORKER AT LEAST EIGHTY PERCENT OF THE COST OF THE AVERAGE PRICE OF A FEDERALLY DEFINED HEALTH BENEFITS PACKAGE LESSER CONTRIBUTIONS WOULD BE REQUIRED FOR PART TIME WORKERS POOR AND UNEMPLOYED PEOPLE WOULD GET GOVERNMENT SUBSIDIES TO HELP PAY FOR COVERAGE THE COOPER BILL WOULD REQUIRE ALL EMPLOYERS TO OFFER THEIR EMPLOYEES A HEALTH PLAN BUT IT WOULDN'T REQUIRE THEM TO PAY FOR IT IT WOULD PROVIDE SUBSIDIES TO HELP LOW INCOME PEOPLE BUY HEALTH INSURANCE BOTH THE CLINTON AND COOPER PROPOSALS WOULD OUTLAW A NUMBER OF INSURANCE PRACTICES THAT MAKE IT DIFFICULT FOR PEOPLE TO OBTAIN COVERAGE THEY WOULD FORBID INSURANCE FIRMS FROM DENYING COVERAGE TO PEOPLE WITH SO CALLED PRE EXISTING MEDICAL CONDITIONS FROM RAISING PREMIUMS ON THE SICK AND FROM DROPPING HIGH RISK PEOPLE FROM HEALTH POLICIES BENEFITS THE CLINTON BILL WOULD ESTABLISH A NATIONAL BENEFITS PACKAGE FOR EVERY AMERICAN INCLUDING COVERAGE FOR HOSPITALIZATION PHYSICIAN VISITS PRESCRIPTION DRUGS AND A RANGE OF PREVENTIVE SERVICES LIKE CHILDHOOD IMMUNIZATIONS THE COOPER BILL ALSO PROVIDES FOR A STANDARD BENEFITS PACKAGE BUT THE DETAILS WOULD BE DETERMINED LATER BY A FEDERAL COMMISSION AND WOULD BE SUBJECT TO CONGRESSIONAL APPROVAL GUIDELINES IN THE COOPER LEGISLATION SAY THE PACKAGE WOULD HAVE TO COVER PREVENTIVE CARE PRESCRIPTION DRUGS AND MEDICALLY APPROPRIATE SERVICES AND PROCEDURES MR. COOPER SAID THIS WEEK HE IS WILLING TO SPECIFY AN INTERIM BENEFITS PACKAGE IN THE BILL PURCHASING POOLS BOTH PLANS WOULD UNITE BUSINESSES AND CONSUMERS IN INSURANCE BUYING POOLS THE POOLS WOULD COLLECT PREMIUMS FROM INDIVIDUALS AND BUSINESSES TO PAY FOR VARIOUS PLANS PROVIDING THE STANDARD BENEFITS PACKAGE INDIVIDUALS THEN WOULD SELECT FROM AMONG THE PLANS THE IDEA BEHIND THE POOLS IS TO SPREAD INSURANCE RISK AND INCREASE THE NEGOTIATING POWER OF CONSUMERS IN THE HEALTH CARE MARKET BUT THERE ARE BIG DIFFERENCES BETWEEN THE CLINTON AND THE COOPER PLANS THE CLINTON BILL WOULD REQUIRE ALL EMPLOYERS WITH FEWER THAN FIVE THOUSAND WORKERS TO JOIN THE HEALTH ALLIANCES IN THEIR REGIONS THE ALLIANCES WOULD BE SET UP AND SUPERVISED BY THE STATES THEY WOULD MONITOR THE QUALITY OF HEALTH PLANS AND WOULD IMPOSE CEILINGS ON HEALTH INSURANCE PREMIUMS THE COOPER BILL WOULD SET UP REGIONAL NONPROFIT STATE CHARTERED HEALTH PLAN PURCHASING COOPERATIVES ONLY BUSINESSES WITH FEWER THAN ONE HUNDRED EMPLOYEES WOULD BE REQUIRED TO JOIN THE COOPERATIVES WHICH WOULDN'T HAVE AS MANY POWERS AS THE CLINTON HEALTH ALLIANCES COST CONTAINMENT BOTH BILLS SEEK TO STIMULATE COMPETITION IN THE HEALTH INDUSTRY IN ORDER TO HOLD DOWN PRICES BUT THE CLINTON PLAN ALSO WOULD PLACE LEGAL CEILINGS ON PREMIUMS FOR THE STANDARD BENEFITS PACKAGE BOTH WOULD OFFER INCENTIVES TO ENCOURAGE ENROLLMENT IN HEALTH MAINTENANCE ORGANIZATIONS AND OTHER PREPAID NETWORKS OF DOCTORS AND HOSPITALS TAXATION OF HEALTH BENEFITS TEN YEARS AFTER ENACTMENT OF THE CLINTON BILL EMPLOYEES WOULD HAVE TO PAY TAXES ON ANY HEALTH BENEFITS THEY RECEIVE THAT AREN'T IN THE STANDARD BENEFITS PACKAGE UNLESS THEY WERE RECEIVING THESE EXTRA BENEFITS AS OF JANUARY FIRST NINETEEN NINETY THREE EMPLOYERS COULD CONTINUE TO DEDUCT ALL THEIR HEALTH BENEFITS COSTS THE COOPER BILL WOULD LIMIT EMPLOYER DEDUCTIONS TO THE COST OF THE LOWEST PRICE ACCOUNTABLE HEALTH PLAN IN EACH REGION FOR WORKERS HEALTH BENEFITS WOULD CONTINUE TO BE TAX FREE THE COOPER PLAN ALSO WOULD ALLOW INDIVIDUALS TO DEDUCT ANY PORTION OF THEIR HEALTH BENEFITS THAT THEY PAY THEMSELVES BOTH PLANS WOULD ALLOW SELF EMPLOYED PEOPLE TO DEDUCT ONE HUNDRED PERCENT OF THE COST OF THEIR HEALTH COVERAGE FINANCING THE CLINTON PLAN WOULD RAISE TAXES ON CIGARETTES AND OTHER TOBACCO PRODUCTS IT WOULD CAP SPENDING ON MEDICARE AND MEDICAID THE TWO BIG GOVERNMENT HEALTH PROGRAMS AND USE THE SAVINGS TO HELP FINANCE UNIVERSAL COVERAGE IT ALSO WOULD ASSESS A ONE PERCENT PAYROLL CHARGE ON LARGE CORPORATIONS THAT OPT NOT TO JOIN THE REGIONAL ALLIANCES THE COOPER PLAN WOULD USE REVENUES RAISED FROM LIMITING EMPLOYER DEDUCTIONS FOR HEALTH BENEFITS TO FINANCE SUBSIDIES FOR LOW INCOME PEOPLE SUBSIDIES THE CLINTON PLAN WOULD SUBSIDIZE HEALTH PREMIUMS FOR PEOPLE WHOSE INCOME IS LESS THAN ONE HUNDRED FIFTY PERCENT OF THE POVERTY LEVEL AND FOR BUSINESSES WITH FEWER THAN SEVENTY FIVE WORKERS AND WAGES THAT AVERAGE UNDER TWENTY FOUR THOUSAND DOLLARS IT ALSO WOULD HAVE THE FEDERAL GOVERNMENT ABSORB EIGHTY PERCENT OF THE HEALTH INSURANCE COSTS OF PEOPLE WHO RETIRE BEFORE AGE SIXTY FIVE THE COOPER PLAN WOULD SUBSIDIZE HEALTH PREMIUMS FOR PEOPLE WHO EARN LESS THAN TWO HUNDRED PERCENT OF THE POVERTY LEVEL MEDICARE BOTH PLANS WOULD LEAVE IT VIRTUALLY ALONE SPONSORSHIP THE CLINTON PLAN IS SPONSORED ALMOST ENTIRELY BY DEMOCRATS WITH THE EXCEPTION OF SENATOR JAMES JEFFORDS R. VERMONT THE COOPER PLAN HAS BIPARTISAN SPONSORSHIP CONSISTING MOSTLY OF CONSERVATIVE DEMOCRATS AND MODERATE REPUBLICANS WHILE MR. COOPER HAS GOTTEN MOST OF THE PUBLICITY THE LEGISLATION'S OTHER CHIEF SPONSOR IN THE HOUSE IS REPRESENTATIVE FRED GRANDY R. IOWA A COMPANION BILL IN THE SENATE IS SPONSORED BY JOHN BREAUX D. LOUISIANA AND DAVID DURENBERGER R. MINNESOTA RAILROADS IN EUROPE ARE TRYING TO FIGURE OUT HOW TO REVERSE DECLINING RIDERSHIP AND DEAL WITH A LACK OF INNOVATION OFFICIALS OF THE UNPROFITABLE AND DEEPLY INDEBTED SYSTEMS SAID THEY NEED REVAMPING TO LURE MOTORISTS FROM HIGHWAYS AND COMPETE WITH OTHER KINDS OF TRANSPORTATION ANTONIO LORENZO NECCI AN ITALIAN RAILROAD ADMINISTRATOR AND CHAIRMAN OF THE INTERNATIONAL UNION OF RAILWAYS SAID QUOTE LITTLE BY LITTLE WE'VE BECOME A SYSTEM OF TRANSPORTATION THAT'S BECOME MARGINAL QUOTE IN THE PAST TWO DECADES THE RAIL SHARE OF THE EUROPEAN PASSENGER MARKET FELL TO SEVEN PERCENT FROM TEN PERCENT CURRENT TRENDS AREN'T ENCOURAGING RAIL PASSENGER TRAFFIC FELL IN ALL TWELVE COUNTRIES OF THE EUROPEAN UNION LAST YEAR FOR AN AVERAGE DROP OF THREE POINT SIX PERCENT YET OUR ADVANTAGE NOW IS THAT HIGHWAYS ARE FULL MR. NECCI SAID AMONG SOLUTIONS PROPOSED BY THE RAIL GROUP FRANCO GERMAN COOPERATION IN THE HIGH SPEED TRAIN BUSINESS AND HIGHER GASOLINE TAXES TO PAY FOR RAIL IMPROVEMENTS THE GEORGES POMPIDOU MODERN ART CENTER IN PARIS TOUTED AS THE WORLD'S MOST VISITED MUSEUM WILL BE RENOVATED IN A CAMPAIGN TO RENEW THE FRENCH CAPITAL'S CULTURAL LANDMARKS THE POMPIDOU CENTER OPENED SEVENTEEN YEARS AGO WITH CAPACITY FOR THREE HUNDRED STAFF MEMBERS AND SEVEN THOUSAND VISITORS A DAY BUT HAS ONE THOUSAND FIVE HUNDRED STAFF SERVING TWENTY FIVE THOUSAND VISITORS DAILY A TWENTY MILLION DOLLAR TWO YEAR OVERHAUL OF THE EXTERIOR PIAZZA WILL START NEXT JANUARY THE SECOND PHASE IS TO UPGRADE THE INTERIOR OTHER AGING AND STRUCTURALLY DEFECTIVE LANDMARKS TO GET IMPROVEMENTS INCLUDE THE PALAIS GARNIER OPERA HOUSE PANTHEON GRAND PALAIS EXHIBITION HALL COMEDIE FRANCAISE THEATER AND TROCADERO SQUARE TO HELP BOLSTER UKRAINE'S FALTERING ECONOMY EUROPEAN UNION AMBASSADORS AGREED TO OFFER THE REPUBLIC A MORE GENEROUS PARTNERSHIP AND COOPERATION AGREEMENT SIMILAR TO THAT BEING NEGOTIATED WITH RUSSIA TO SOFTEN E. U. TRADE DEFENSES THE TWELVE COUNTRY BLOC ALSO AGREED TO NEGOTIATE MEATIER FREE TRADE PACTS WITH ESTONIA LATVIA AND LITHUANIA SUCH AS LOWERING BARRIERS ON PRODUCTS IN A MOVE TOWARD CONCLUDING MORE ADVANCED ASSOCIATION ACCORDS WITH THE THREE BALTIC NATIONS THE STEPS ARE EXPECTED TO BE ENDORSED BY E. U. FOREIGN MINISTERS ON MONDAY CONSUMER PRODUCTS COMPANIES HOPING FOR CHINESE CONSUMER SPENDING TO SURGE OVER THE LUNAR NEW YEAR HOLIDAY MAY BE DISAPPOINTED CHINESE BUYING HABITS HAVE CHANGED IN RECENT YEARS REFLECTING INCREASING URBANIZATION AND EXPOSURE TO WESTERN CUSTOMS A HONG KONG TRADE DEVELOPMENT COUNCIL ECONOMIST SAID THE CHINESE PURCHASE MORE AT CHRISTMASTIME NOWADAYS HE SAID AND THIS RESTRAINS SPENDING IN THE CHINESE NEW YEAR CELEBRATED NEXT THURSDAY BUT IN RURAL AREAS FEW PEOPLE EXCHANGE GIFTS AT CHRISTMAS AND THUS ARE MORE LIKELY TO SPEND MORE FOR THE CHINESE NEW YEAR BRITAIN BEGAN A PILOT STUDY BY FORENSIC SCIENTISTS TO SET UP A GENETIC DATABASE TO TRAP CRIMINALS LEGISLATION BEFORE PARLIAMENT WOULD WIDEN POLICE POWERS TO TAKE D. N. A. SAMPLES FROM SALIVA AND HAIR SAMPLES FOR A NATIONAL DATABASE OF CONVICTED CRIMINALS WE WILL BRING THE FULL FORCE OF MODERN SCIENCE TO BEAR ON THE MODERN CRIMINAL A U. K. OFFICIAL SAID TAIWAN'S CABINET APPROVED REIMPOSING A CAPITAL GAINS TAX ON SECURITIES THAT WAS SCRAPPED IN NINETEEN EIGHTY NINE AND CUTTING THE STOCK TRANSACTION TAX TO ZERO POINT TWO PERCENT FROM ZERO POINT THREE PERCENT STARTING JULY FIRST UNDER THE PLAN WHICH NEEDS PARLIAMENTARY APPROVAL SOME INDIVIDUALS WOULD BE SUBJECT TO A ZERO POINT SIX PERCENT CAPITAL GAINS TAX THE LEVY WOULD BE ZERO POINT THREE PERCENT FOR INSTITUTIONAL INVESTORS SEPARATELY IN ITS BID TO JOIN THE GENERAL AGREEMENT ON TARIFFS AND TRADE TAIWAN OFFERED TO CUT TARIFFS ON FOUR HUNDRED SEVENTY FIVE IMPORTED ITEMS AN AVERAGE OF TWENTY PERCENT THE U. S. SEEKS A HALVING OF DUTIES ON SIX HUNDRED NINETY NINE ITEMS ONE DAY PROTESTS OF GOVERNMENTS' INACTION ACTION AND PROPOSALS STRETCHED FROM SOUTH AMERICA TO ASIA IN POLAND SIXTY THOUSAND ARMS INDUSTRY WORKERS SHUT THIRTY ONE FACTORIES IN A NATIONWIDE WARNING STRIKE TO DEMAND A VISION FOR THE AILING DEFENSE SECTOR UNIONS WANT HIGHER PAY AND MORE GOVERNMENT PURCHASES AND SUBSIDIES FOR RESTRUCTURING THE SECTOR ITS SALES CRUSHED BY THE EAST BLOC'S COLLAPSE IN ECUADOR A GENERAL STRIKE TO PROTEST THE GOVERNMENT'S SEVENTY ONE PERCENT INCREASE IN GASOLINE PRICES TURNED VIOLENT IN MANY AREAS IN PAKISTAN A STRIKE CALLED BY A POLITICAL OPPOSITION PARTY OVER POWER DILUTION FROM REDISTRICTING SHUT DOWN KARACHI WHERE SHOOTINGS CAUSED FATALITIES IN WESTERN GERMANY METALWORKING INDUSTRIES HELD TO A PROPOSED WAGE FREEZE AS UNION WARNING STRIKES EXTENDED INTO A FOURTH DAY ONE HUNDRED SEVENTY SIX THOUSAND WORKERS WALKED OUT OF FIVE HUNDRED NINETY ENTERPRISES FRANCE TIGHTENED CUSTOMS' QUALITY CONTROLS AFTER ONE THOUSAND TWO HUNDRED STRIKING FISHERMEN SACKED A HUGE WHOLESALE FOOD MARKET TO PROTEST INEXPENSIVE IMPORTS THEY SAY THREATEN THEIR LIVELIHOOD THEY WANT EUROPEAN PRICE MINIMUMS AND IMPORT PROTECTION BRITISH CUSTOMS OFFICERS EMPTIED TEN THOUSAND BEER WINE AND LIQUOR BOTTLES INTO SEWERS TO WARN AGAINST BOOTLEGGING IN THE BARRIER FREE EUROPEAN UNION TAKING ALCOHOLIC BEVERAGES HOME FROM OTHER COUNTRIES FOR PERSONAL USE IS LEGAL BUT PROFITEERING ISN'T MOUNT SEMNERU A NINE THOUSAND EIGHT HUNDRED SEVENTY SEVEN FOOT HIGH VOLCANO IN EAST JAVA INDONESIA ERUPTED FOR THE FIRST TIME IN THIRTEEN YEARS SUGAR FUTURES PRICES SOARED PUSHING THE VALUE OF THE ACTIVELY TRADED MARCH FUTURES CONTRACT TO ELEVEN CENTS A POUND FOR THE FIRST TIME SINCE OCTOBER AT NEW YORK'S COFFEE SUGAR AND COCOA EXCHANGE SUGAR FOR MARCH DELIVERY WAS UP ZERO POINT FIVE TWO CENT ON THE DAY TO SETTLE AT ELEVEN CENTS A POUND LENDING STRENGTH TO THE SUGAR FUTURES MARKET WHICH HAS TRADED IN A RELATIVELY NARROW PRICE RANGE FOR MONTHS WERE EXPECTATIONS OF THE IMPOSITION OF A WHITE SUGAR TAX BY RUSSIA A MAJOR IMPORTER OF SUGAR SUGAR TRADERS HAVE LONG EXPECTED THE ANNOUNCEMENT OF THE RUSSIAN SUGAR TAX BUT MOST HAVE BEEN EXPECTING THE TAX TO BE QUITE LARGE PERHAPS AS MUCH AS FIFTY PERCENT OF THE PRICE OF SUGAR YESTERDAY ALTHOUGH THERE WAS STILL NO FORMAL ANNOUNCEMENT OF THE TAX THE TALK IN THE MARKET WAS THAT IT WOULD BE LESS THAN THAT PERHAPS TWENTY PERCENT TO TWENTY FIVE PERCENT OF SUGAR'S PRICE QUOTE EVERYONE KNOWS THE TAX IS COMING BUT IT'S NOT GOING TO BE AS BIG AS PEOPLE MIGHT HAVE THOUGHT QUOTE SAID SANDRA KAUL SENIOR ANALYST FOR SMITH BARNEY SHEARSON MOREOVER IN THE MONTHS BETWEEN WHEN THE TAX IS ANNOUNCED AND WHEN IT IS ACTUALLY IMPOSED MANY TRADERS EXPECT RUSSIAN IMPORTS TO SURGE PROVIDING ADDITIONAL SHORT TERM SUPPORT FOR FUTURES PRICES SAID JUDITH GANES SENIOR ANALYST FOR MERRILL LYNCH ALSO IN THE MARKET YESTERDAY MS. GANES SAID WERE REPORTS THAT EGYPT BOUGHT FIVE CARGOS OF SUGAR OR ABOUT SIXTY FIVE THOUSAND TONS DEMAND FOR SUGAR IS GENERALLY EXPECTED TO BE STRONG OVER THE NEXT FEW MONTHS AMONG THE MOST PREVALENT REPORTS CIRCULATING IN THE MARKET ARE EXPECTATIONS THAT CHINA AND INDIA WILL MAKE MAJOR PURCHASES OF SUGAR SOMETIME SOON BUYING HAS ALSO BEEN MATERIALIZING FROM OTHER QUARTERS MS. KAUL SAID WE'VE BEEN SEEING INCREASED MIDDLE EASTERN BUYING SHE SAID IT'S BEGINNING TO GET US TO A POINT WHERE THERE ARE CONCERNS ABOUT AVAILABILITY OF WHITE SUGAR BECAUSE OF TIGHT SUPPLIES OF SUGAR AND EXPECTATIONS OF STRONG DEMAND MANY ANALYSTS EXPECT PRICES TO CONTINUE TO RISE OVER THE NEXT FEW MONTHS THE LONG TERM PICTURE FOR THIS MARKET IS CERTAINLY HEALTHY MS. GANES SAID ADDING THAT IT IS POSSIBLE THE PRICES OF SUGAR COULD RISE TO AS MUCH AS THIRTEEN CENTS IN THE NEAR FUTURE PRECIOUS METALS NERVOUSNESS ABOUT THE FEDERAL RESERVE BOARD'S RELUCTANCE TO INTERVENE IN THE U. S. MONETARY SYSTEM PUSHED PRECIOUS METALS PRICES HIGHER ANALYSTS SAID AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY WAS UP TWO DOLLARS AND SIXTY CENTS TO THREE HUNDRED EIGHTY NINE DOLLARS AND TEN CENTS AN OUNCE WHILE THE ACTIVELY TRADED SILVER FUTURES CONTRACT ROSE TWELVE POINT FIVE CENTS TO FIVE DOLLARS AND FORTY SEVEN CENTS AN OUNCE METALS PRICES WERE ALSO SUPPORTED BY A SHARP DOWNTURN IN BOND PRICES WHICH TEND TO MOVE IN INVERSE CORRELATION TO COMMODITY PRICES IN GENERAL SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY HELPED TO STRENGTHEN SILVER'S RALLY YESTERDAY AS THESE FUNDS BOUGHT LARGE NUMBERS OF SILVER FUTURES CONTRACTS GRAINS AND SOYBEANS PRICES OF WHEAT FUTURES CONTRACTS SETTLED LOWER IN QUIET TRADING CORN AND SOYBEAN PRICES SETTLED MIXED THE MARKETS CONTINUE TO BE DOMINATED BY FORECASTS FOR A BUMPER SOYBEAN CROP IN SOUTH AMERICA AS WELL AS FEEBLE FOREIGN DEMAND FOR U. S. GRAIN WE'VE GOT THE FEBRUARY BLAHS SAID DANIEL W. BASSE DIRECTOR OF RESEARCH AT AGRESOURCE COMPANY CHICAGO IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY DROPPED THREE POINT FIVE CENTS A BUSHEL TO SETTLE AT THREE POINT SEVEN ONE TWO FIVE DOLLARS A BUSHEL DELTA AIR LINES ANNOUNCED PLANS TO CUT ITS TRANS ATLANTIC CAPACITY BY TWELVE PERCENT THIS SUMMER ELIMINATING SCORES OF THE MONEY LOSING ROUTES IT INHERITED AFTER BUYING PAN AM CORPORATION'S AILING EUROPEAN OPERATIONS MORE THAN TWO YEARS AGO LATE LAST FALL DELTA SAID IT WOULD FIX SELL OR TRADE ROUTES THAT WEREN'T MAKING MONEY AND YESTERDAY'S ANNOUNCEMENT APPEARS TO FOLLOW THROUGH ON THAT VOW ATLANTA BASED DELTA SAID IT WILL DROP TO TWO HUNDRED FIFTY NINE FROM TWO HUNDRED NINETY THREE THE NUMBER OF WEEKLY FLIGHTS ACROSS THE NORTH ATLANTIC THIS SUMMER AS PART OF A DETAILED PLAN THAT CALLS FOR EVERY ATLANTIC FLIGHT TO PAY ITS OWN WAY DELTA HAS LOST HUNDREDS OF MILLIONS OF DOLLARS ON THE EUROPEAN ROUTES SINCE IT STARTED FLYING THEM IN NOVEMBER NINETEEN NINETY ONE AND THE LOSSES HAVE FORCED THE AIRLINE TO INITIATE PAINFUL COMPANYWIDE COST CUTTING MOVES WHILE INDUSTRY OBSERVERS GENERALLY APPROVED OF DELTA'S MOVE MANY THOUGHT IT WAS ABOUT TIME THE COMPANY UNDERTOOK IT QUOTE IT'S A MUCH NEEDED MUCH DELAYED STEP THEY NEEDED TO HAVE DONE THIS SOONER SAID DAVID ULMER VICE PRESIDENT OF THE AIRLINE CONSULTING FIRM ROBERTS ROACH AND ASSOCIATES IN SAN FRANCISCO THEY'VE TAKEN LONGER TO DIGEST THE PAN AM SYSTEM THAN THEY THOUGHT AND IT'S BEEN A BIGGER LOSER THAN THEY THOUGHT IN A STATEMENT DELTA CHAIRMAN RONALD W. ALLEN SAID PRELIMINARY CALENDAR YEAR NINETEEN NINETY THREE OPERATING RESULTS FOR DELTA'S TRANS ATLANTIC OPERATIONS SHOWED A TWELVE PERCENT IMPROVEMENT YEAR OVER YEAR ONCE ONE TIME CHARGES ARE EXCLUDED WHILE UNIT COSTS ARE DOWN SIX PERCENT BUT EVEN THAT IMPROVEMENT IS COSTLY TO THE COMPANY PAUL KAROS AN AIRLINE ANALYST WITH C. S. FIRST BOSTON INCORPORATED SAID HE ESTIMATES DELTA'S LOSS ON TRANS ATLANTIC OPERATIONS FOR NINETEEN NINETY THREE WILL BE FOUR HUNDRED MILLION DOLLARS MR. KAROS WAS ENTHUSIASTIC ABOUT DELTA'S ACTION CALLING IT A VERY SIGNIFICANT STRATEGIC MOVE EVEN WHILE DELTA CUTS DOWN ON FLIGHTS ACROSS THE ATLANTIC IT PLANS TO BEEF UP DOMESTIC SERVICE TO ITS HUB AT NEW YORK'S JOHN F. KENNEDY AIRPORT AND INTRA EUROPE SERVICE FROM ITS HUB IN FRANKFURT DELTA SAID THAT EFFECTIVE MAY FIRST IT WILL RESTRUCTURE ITS J. F. K. OPERATIONS AND ADD TEN DOMESTIC FLIGHTS FROM OTHER DELTA HUBS IN FRANKFURT CAPACITY WILL JUMP FORTY TWO PERCENT ON FLIGHTS BEYOND THE HUB AS THE AIRLINE REPLACES SMALLER JETS WITH LARGER ONES ON FLIGHTS FROM FRANKFURT TO ATHENS MOSCOW AND ISTANBUL FOR INSTANCE DELTA WILL REPLACE ONE HUNDRED NINETEEN SEAT BOEING SEVEN TWENTY SEVENS WITH ONE HUNDRED SEVENTY SEVEN PASSENGER AIRBUS INDUSTRIE A. THREE TENS AND INTRODUCE ITS TWO HUNDRED SIXTY FIVE PASSENGER MCDONNELL DOUGLAS M. D. ELEVEN FROM LOS ANGELES TO FRANKFURT AND FROM FRANKFURT TO INDIA DELTA HAS SAID IT FILLS A HIGH PERCENTAGE OF SEATS ON FLIGHTS BEYOND FRANKFURT IN THE COMPETITIVE FRANKFURT MARKET DELTA CAN'T AFFORD TO CUT BACK DELTA PROBABLY IS LOATH TO GIVE UP ANY CAPACITY BECAUSE SOMEBODY ELSE WILL COME IN AND GET IT SAYS JON ASH WITH THE WASHINGTON CONSULTING FIRM GLOBAL AVIATION ASSOCIATES IT'S A TOUGH POSITION THEY'RE PROTECTING THERE AS FOR SPECIFIC FLIGHTS DELTA SAID IT WILL DISCONTINUE ITS DAILY NONSTOPS BETWEEN SAN FRANCISCO AND FRANKFURT IN APRIL AND BETWEEN NEW YORK AND BUDAPEST IN MAY DELTA ALSO WILL BEGIN A CODESHARE ARRANGEMENT WITH MALEV HUNGARIAN AIRLINES IN MAY WHICH WILL ENABLE DELTA PASSENGERS WHO WANT TO GO TO BUDAPEST TO DO SO BY SWITCHING TO A MALEV JET AT J. F. K. LAST MONTH DELTA BEGAN A SIMILAR CODESHARE ARRANGEMENT WITH SABENA AND ELIMINATED ITS DAILY J. F. K. BRUSSELS FLIGHT DELTA ALREADY HAD ANNOUNCED PLANS TO ELIMINATE ITS NONSTOP MIAMI FRANKFURT AND NEW YORK VIENNA FLIGHTS PRESIDENT CLINTON LIFTED THE NINETEEN YEAR OLD TRADE EMBARGO ON VIETNAM SETTING OFF A RACE BY U. S. COMPANIES TO CATCH UP WITH THEIR FOREIGN COMPETITORS IN THAT POTENTIALLY LUCRATIVE MARKET IN SOUTHEAST ASIA SOME U. S. COMPANIES WHICH HAVE BEEN POSITIONING THEMSELVES FOR MORE THAN A YEAR FOR THE EMBARGO'S END WILL JUMP OUT OF THE STARTING BLOCK AMERICAN EXPRESS COMPANY FOR EXAMPLE IS EXPECTED TO IMMEDIATELY SIGN AN AGREEMENT WITH VIETNAM THAT WILL PERMIT THE USE OF ITS CREDIT CARDS THERE ACCORDING TO EUGENE MATHEWS A U. S. CONSULTANT TO THE COMPANY WHO HAS LIVED IN VIETNAM SINCE NINETEEN NINETY ALTHOUGH ASIAN AND EUROPEAN BUSINESS COMPETITORS HAVE IGNORED THE U. S. EMBARGO FOR YEARS MR. MATHEWS BELIEVES THAT SOME U. S. COMPANIES PARTICULARLY IN THE CONSUMER PRODUCTS FIELD WILL CATCH UP QUICKLY MANY AMERICAN PRODUCTS SUCH AS COCA COLA HAVE BEEN SMUGGLED INTO VIETNAM FOR YEARS OTHER PRODUCTS RANGING FROM TOOTHPASTE TO COMPUTERS MADE BY INTERNATIONAL BUSINESS MACHINES CORPORATION ARE REMEMBERED FROM THE WAR YEARS BY THAT GENERATION OF VIETNAMESE PRESIDENT CLINTON WHO AVOIDED MILITARY SERVICE DURING THE VIETNAM WAR DELIBERATELY PLAYED DOWN THE COMMERCIAL OPPORTUNITIES IN DEFERENCE TO THE FAMILIES OF SOLDIERS WHO REMAIN UNACCOUNTED FOR MANY FAMILY AND VETERANS GROUPS STRONGLY OPPOSED HIS DECISION TO LIFT THE EMBARGO INSTEAD MR. CLINTON AND SENIOR U. S. OFFICIALS EMPHASIZED HANOI'S COOPERATION OVER THE PAST YEAR IN HELPING TO RESOLVE SOME OF THESE CASES AND SAID A RECIPROCAL GESTURE WAS CALLED FOR QUOTE I AM ABSOLUTELY CONVINCED IT OFFERS THE BEST WAY TO RESOLVE THE FATE OF THOSE WHO REMAIN MISSING AND ABOUT THOSE ABOUT WHOM WE ARE NOT SURE QUOTE MR. CLINTON SAID I WANTED TO MAKE SURE THAT THE TRADE QUESTIONS DID NOT ENTER INTO THIS DECISION MR. CLINTON SAID I NEVER HAD A BRIEFING ON IT AND WE NEVER HAD A DISCUSSION ABOUT IT MR. CLINTON ALSO AUTHORIZED THE ESTABLISHMENT OF LIAISON OFFICES IN WASHINGTON AND HANOI TO HELP WITH THE PROCESS OF ACCOUNTING FOR MISSING SOLDIERS AND ALSO TO PROVIDE SUPPORT SERVICES FOR U. S. COMPANIES AND CITIZENS IN VIETNAM BUT THE U. S. WON'T ESTABLISH FULL DIPLOMATIC RELATIONS WITH HANOI AT THIS TIME HOLDING BACK THAT STEP AS LEVERAGE TO ENSURE FURTHER PROGRESS ON THE ISSUE OF MISSING SOLDIERS FURTHERMORE THERE WILL STILL BE IMPEDIMENTS IN THE WAY OF U. S. VIETNAM TRADE HANOI FOR INSTANCE WON'T HAVE MOST FAVORED NATION TRADE STATUS WHICH MEANS THAT PRODUCTS MADE THERE FOR THE U. S. MARKET WILL BE SUBJECT TO SUBSTANTIALLY HIGHER U. S. TARIFFS THAN GOODS FROM NEARLY ALL OTHER U. S. TRADING PARTNERS AND THE OVERSEAS PRIVATE INVESTMENT CORPORATION WHICH SUPPORTS MAJOR U. S. INVESTMENTS IN DEVELOPING COMPANIES CAN'T SIGN AN AGREEMENT TO OPERATE IN VIETNAM UNTIL FULL DIPLOMATIC RELATIONS ARE ESTABLISHED THERE ALSO ARE VARIOUS U. S. LAWS ON THE BOOKS THAT BAR TRADE OR AID TO VIETNAM SUCH AS THE NINETEEN NINETY THREE FOREIGN AID APPROPRIATIONS BILL AND AMENDMENTS TO LAWS CONCERNING THE U. S. EXPORT IMPORT BANK WHICH AIDS U. S. EXPORTERS U. S. OFFICIALS ALSO SAID THAT IT WOULD TAKE WEEKS AT LEAST TO WORK OUT FEDERAL REGULATIONS THAT WOULD GOVERN TRADE WITH VIETNAM ON CAPITOL HILL REPUBLICAN SENATOR JOHN MCCAIN OF ARIZONA THE FORMER VIETNAM PRISONER OF WAR WHO COSPONSORED A RECENT SENATE RESOLUTION FOR LIFTING THE EMBARGO SAID THE DECISION WOULD HONOR THE NATION'S COMMITMENT TO OUR P. O. W. SLASH M. I. A.S AND THEIR FAMILIES PROTECT OUR NATIONAL INTERESTS AND ADVANCE OUR VALUES ABROAD BUT BITTERNESS WILL LINGER OVER THE PRESIDENT'S DECISION SENATOR BOB SMITH R. N. H. ANOTHER VIETNAM VETERAN QUESTIONED THE PRESIDENT'S VERY RIGHT TO MAKE THE DECISION WHEN MR. CLINTON REFUSED TO SERVE IN VIETNAM PROTESTED THE WAR AND HAS NO MILITARY EXPERIENCE AS PRESIDENT CLINTON ANNOUNCED HIS DECISION A LONE PROTESTER DRESSED IN BLACK AND HOLDING A BLACK P. O. W. SLASH M. I. A. FLAG STOOD LIKE A SENTRY OUTSIDE THE WHITE HOUSE GATE THE DECISION IS A BIG VICTORY FOR VIETNAM NEARLY TWO DECADES AFTER FORCING THE U. S. TO WITHDRAW HANOI WHICH FEARS MILITARY DOMINATION BY CHINA AND COMMERCIAL DOMINATION BY JAPAN NOW WANTS A MAJOR U. S. PRESENCE AS A COUNTERWEIGHT AND EVEN THOUGH THE U. S. EMBARGO HAD LITTLE AFFECT ON OTHER NATIONS MR. CLINTON'S DECISION GIVES A BOOST TO THE PROCESS OF WELCOMING VIETNAM WHICH HAS UNDERGONE MAJOR ECONOMIC REFORM BACK INTO THE INTERNATIONAL FINANCIAL COMMUNITY TRYING TO CLOSE THE CIRCLE YESTERDAY MR. CLINTON SAID WHATEVER THE VIETNAM WAR MAY HAVE DONE IN DIVIDING OUR COUNTRY IN THE PAST TODAY OUR NATION IS ONE IN HONORING THOSE WHO SERVED AND PRESSING FOR ANSWERS ABOUT ALL THOSE WHO DID NOT RETURN HE ADDED QUOTE I REMAIN PERSONALLY COMMITTED TO CONTINUING THE SEARCH FOR THE ANSWERS AND THE PEACE OF MIND THAT THE FAMILIES OF THE MISSING DESERVE QUOTE JACKIE CALMES CONTRIBUTED TO THIS ARTICLE MESCALERO APACHE TRIBE LEADERS TENTATIVELY AGREED TO ALLOW A MINNESOTA UTILITY TO STORE SPENT NUCLEAR FUEL ON ITS RESERVATION IN AN INITIAL STEP TOWARD ESTABLISHING A PRIVATELY OPERATED NUCLEAR WASTE STORAGE SITE UNDER THE PACT TRIBAL LEADERS CONDITIONALLY AGREED TO LET MINNEAPOLIS BASED NORTHERN STATES POWER COMPANY STORE USED FUEL RODS FROM ITS NUCLEAR POWER PLANT IN ABOVE GROUND SEALED METAL CASKS ON THE TRIBE'S RESERVATION IN SOUTHERN NEW MEXICO QUOTE IN ORDER TO MAKE THIS A VIABLE PROJECT WE NEED MORE THAN THE SPENT FUEL FROM NSP QUOTE JAMES J. HOWARD THE UTILITY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW HE ADDED THAT THE COMPANY WILL NOW BEGIN CONTACTING OTHER UTILITIES TO DETERMINE WHETHER THEY'RE INTERESTED IN JOINING THE VENTURE THE PACT IS SURE TO SPARK CONTROVERSY AND ANY FINAL CONTRACT MUST BE APPROVED BY A VOTE OF THE TRIBE MEMBERSHIP ABOUT THREE THOUSAND TWO HUNDRED PEOPLE LATE YESTERDAY NEW MEXICO'S GOVERNOR VOWED TO RESIST ANY EFFORT TO LOCATE SUCH A FACILITY IN NEW MEXICO WHILE CONCEDING THAT THE MESCALERO APACHES AS A SELF GOVERNING TRIBE HAVE THE RIGHT TO ENTER INTO SUCH A DEAL THE FEDERAL GOVERNMENT IS OBLIGATED TO BEGIN ACCEPTING SPENT RODS FROM UTILITIES IN FUTURE YEARS AND IT'S BEEN SEEKING TO ESTABLISH A SO CALLED MONITORED RETRIEVABLE STORAGE FACILITY SUCH A FACILITY WOULD ALLOW THE RADIOACTIVE FUEL TO BE STORED ON AN INTERIM BASIS UNTIL A PERMANENT DISPOSAL SITE IS DEVELOPED SOMETIME IN THE NEXT CENTURY BUT THE GOVERNMENT'S EFFORT IS BOGGED DOWN AND THE MESCALERO APACHES DECIDED TO EXPLORE A PRIVATE VENTURE AS A RESULT OF DELAYS TERMS OF THE TENTATIVE AGREEMENT WHICH ONE TRIBAL OFFICIAL DESCRIBED AS ANOTHER STEP ALONG OUR ROAD TO SELF SUFFICIENCY ARE STILL SUBJECT TO NEGOTIATION NSP SAID THE BUSINESS ORIENTED MESCALERO APACHES ALREADY OPERATE A SKI RESORT A LARGE CATTLE HERD AND A LOGGING OPERATION ON THE RESERVATION LIKE OTHER UTILITIES WITH NUCLEAR PLANTS NORTHERN STATES NOW STORES MANY YEARS' WORTH OF USED UP BUT STILL RADIOACTIVE FUEL RODS UNDERWATER IN SWIMMING POOL LIKE STRUCTURES ON THE SITE OF ITS PLANT THE POOLS WERE INTENDED TO BE ONLY A TEMPORARY HOLDING POINT FOR RODS THAT WOULD BE SHIPPED TO REPROCESSING SITES OR EXPECTED DISPOSAL BUT PLANS TO ESTABLISH REPROCESSING FACILITIES WERE CANCELED IN THE NINETEEN SEVENTIES AND THE RODS THE PLANTS CONTINUE TO PRODUCE ARE STILL PUT IN THE TEMPORARY POOLS NSP IS SEEKING CLEARANCE BY THE END OF APRIL FROM MINNESOTA OFFICIALS TO STORE THE OLDER RODS FROM ITS PRAIRIE ISLAND PLANT IN ABOVE GROUND CASKS ON SITE THE COMPANY HOPES TO STORE THE CASKS AT THE MINNESOTA NUCLEAR FACILITY UNTIL ABOUT THE YEAR TWO THOUSAND ONE OR TWO THOUSAND TWO BY WHICH TIME THE NEW MEXICO FACILITY WOULD BE ABLE TO RECEIVE THEM IF THE UTILITY DOESN'T GET ADDITIONAL SPENT FUEL STORAGE FACILITIES THE COMPANY SAYS IT WILL HAVE TO BEGIN SHUTTING THE PLANT BEGINNING IN NINETEEN NINETY FIVE THE FACILITY REPRESENTS TWENTY PERCENT OF THE COMPANY'S TOTAL GENERATING CAPACITY UNDER THE AGREEMENT WITH THE TRIBE THE UTILITIES THAT MAKE USE OF ITS STORAGE SITE WILL ASSUME RESPONSIBILITY AND LIABILITY FOR TRANSPORTING THE SPENT FUEL TO THE FACILITY AND WILL RETAIN OWNERSHIP OF THE FUEL WHILE IT'S STORED THERE GENERAL ELECTRIC COMPANY'S G. E. INVESTMENTS UNIT SAID IT AGREED TO SELL A LINE OF MUTUAL FUNDS THROUGH CROSSLAND SAVINGS SERVICES CORPORATION A UNIT OF CROSSLAND SAVINGS THE AGREEMENT CALLS FOR THE BANK TO MAKE G. E. FUNDS AVAILABLE TO CUSTOMERS AT ITS THIRTY FIVE BRANCHES IN THE NEW YORK METROPOLITAN AREA THE UNIT WILL OFFER U. S. EQUITY GLOBAL EQUITY TAX EXEMPT FIXED INCOME STRATEGIC INVESTMENT AND MONEY MARKET MUTUAL FUNDS G. E. FUNDS ARE ALSO AVAILABLE THROUGH CHEMICAL BANK OF NEW YORK AND FOUNDERS NATIONAL TRUST BANK NAPLES FLORIDA MUST BE QUOTE ADDRESSED QUOTE FIRMLY PLANTED THE U. S. CHAMBER OF COMMERCE SCRAPPING FRIENDLIER TESTIMONY RELEASED ONLY HOURS BEFORE DELIVERED A BROADSIDE ON THE CLINTON HEALTH PLAN AND WARNED CONGRESS AGAINST EVEN USING THE BILL AS A QUOTE STARTING POINT QUOTE FOR FUTURE LEGISLATION THE STATEMENT CAME ON THE HEELS OF A BUSINESS ROUNDTABLE VOTE WEDNESDAY ALSO REBUFFING THE ADMINISTRATION PLAN A SENIOR CHAMBER OFFICIAL DESCRIBED THE TWIN ACTIONS AS A WAKE UP CALL TO THE PRESIDENT OF ERODING BUSINESS SUPPORT FOR HIS HEALTH CARE PLAN DEMOCRATS AND LABOR LEADERS REACTED WITH ANGER A. F. L. C. I. O. PRESIDENT LANE KIRKLAND ACCUSED BUSINESS OF CRACKING THE WHIP AND INVOKING CLASS SOLIDARITY PERHAPS THE MOST EMOTIONAL REACTION CAME FROM SENATOR JAY ROCKEFELLER D. WEST VIRGINIA WHO INTRODUCED HIMSELF AT A NEWS CONFERENCE AS JOHN D. ROCKEFELLER THE FOURTH AND PROCEEDED TO CASTIGATE THE BIG CORPORATE INTERESTS SO ASSOCIATED WITH HIS WEALTHY FAMILY I STAND BEFORE YOU TO SAY SHAME ON BIG BUSINESS SAID MR. ROCKEFELLER WHO SAVED HIS SHARPEST REBUKES FOR THE ROUNDTABLE AN ORGANIZATION OF CHIEF EXECUTIVE OFFICERS OF SOME OF THE NATION'S LARGEST CORPORATIONS THEY HAVE WALKED AWAY FROM THEIR WORKERS SAID MR. ROCKEFELLER ADDING THAT THERE IS SPECIAL PLACE IN HELL FOR ROBERT WINTERS CHAIRMAN OF PRUDENTIAL INSURANCE COMPANY OF AMERICA WHO HEADS THE ROUNDTABLE'S HEALTH POLICY TASK FORCE THAT BROUGHT A STERN REBUKE FROM PRUDENTIAL QUOTE I AM DISAPPOINTED A SENATOR OF HIS STATURE WOULD LEVEL SUCH A HARSH PERSONAL ATTACK ON OUR CHAIRMAN A PERSON OF OUTSTANDING INTEGRITY SIMPLY BECAUSE THEY DISAGREE OVER DIFFICULT PUBLIC POLICY ISSUES QUOTE SAID JOSEPH VECCHIONE VICE PRESIDENT FOR PUBLIC RELATIONS AT PRUDENTIAL MUCH OF THE DEBATE COMES DOWN TO WHO WILL PAY FOR CHANGES IN THE HEALTH CARE SYSTEM BUSINESS INTERESTS ARE CLEARLY ALIGNING THEMSELVES WITH MORE CONSERVATIVE ALTERNATIVES THAT UNLIKE THE CLINTON PROPOSAL WOULDN'T REQUIRE EMPLOYERS TO HELP PAY THEIR WORKERS' HEALTH PREMIUMS THE TONE SET BY THE CHAMBER THE NATION'S LARGEST BUSINESS LOBBY GROUP WAS STRIKING SINCE THE ORGANIZATION HAD SENT THE HOUSE WAYS AND MEANS COMMITTEE ADVANCE TESTIMONY INDICATING THAT IT WAS OPEN TO EMPLOYER MANDATES IF THE EMPLOYER SHARE COULD BE PARED BACK TO ABOUT FIFTY PERCENT OF THE COST OF COVERAGE THE ADMINISTRATION PROPOSES AN EIGHTY PERCENT EMPLOYER CONTRIBUTION WE ACCEPT THE PROPOSITION THAT EMPLOYERS SHOULD PROVIDE AND HELP PAY FOR INSURANCE ON A PHASED IN BASIS OVER TIME SAID THE TEXT WHICH WAS DELIVERED IN ANTICIPATION OF A HEARING YESTERDAY MORNING WE SUGGEST THAT THE REQUIRED LEVEL OF CONTRIBUTION BE NO MORE THAN FIFTY PERCENT AND APPLIED WITH REFERENCE TO LOWER COST PLAN PREMIUMS WHEN ROBERT PATRICELLI CHAIRMAN OF THE CHAMBER'S HEALTH COMMITTEE APPEARED BEFORE THE WAYS AND MEANS COMMITTEE THIS LANGUAGE WAS GONE AND THE MESSAGE AND TONE WERE VERY DIFFERENT WE SPECIFICALLY CANNOT SUPPORT THE PRESIDENT'S HEALTH SECURITY ACT HE TOLD THE PANEL AFTER RECITING A LIST OF PERCEIVED FLAWS IN THE CLINTON PROPOSAL THE EXECUTIVE WARNED THE COMMITTEE AGAINST EVEN USING THE BILL AS ITS BASE TEXT IN DRAFTING LEGISLATION THIS SPRING THE CLINTON BILL FOR ONE CERTAINLY GIVES MANDATES A BAD NAME SAID MR. PATRICELLI QUOTE IF EMPLOYER MANDATES BECOME THE VEHICLE FOR THOSE WHO FAVOR THE TRAPPINGS OF A GOVERNMENT DOMINATED SYSTEM WE WILL NOT ACCEPT THOSE MANDATES QUOTE WHILE THE CHAMBER REMAINS OPEN TO SOME COST SHARING FORMULA THE ADMINISTRATION MUST PARE BACK ON OTHER ELEMENTS OF THE PLAN IF IT IS TO RESTORE BUSINESS SUPPORT FOR A COMMON FINANCING SCHEME MR. PATRICELLI SAID HE SAID THE INITIAL TESTIMONY WAS A MISTAKE OF WELL MEANING CHAMBER STAFF WHO HADN'T CLEARED THE TEXT WITH TOP OFFICIALS BUT THIS EXPLANATION IS AT ODDS WITH THE CHAMBER'S REPUTATION AS A TIGHTLY CONTROLLED ORGANIZATION AND MANY OBSERVERS SAW THE NEW TOUGHER STATEMENT AS DESIGNED TO BUILD ON THE ROUNDTABLE VOTE WEDNESDAY EVENING REPRESENTATIVE FORTNEY PETE STARK D. CALIFORNIA CHAIRMAN OF THE WAYS AND MEANS HEALTH SUBCOMMITTEE LIKENED THE CHAMBER TO A REPUBLICAN APOLOGIST SOCIETY AND MAJORITY LEADER RICHARD GEPHARDT D. MISSOURI IS EXPECTED TO USE A SPEECH TODAY IN WASHINGTON TO ATTACK REPUBLICANS FOR A LONG HISTORY OF OPPOSING HEALTH REFORM PRESIDENT CLINTON FOR HIS PART YESTERDAY PLAYED DOWN THE ROUNDTABLE AND CHAMBER STATEMENTS I DON'T WANT TO MAKE TOO MUCH OF IT BECAUSE THE PEOPLE WHO CAME IN HERE TO SEE ME SAID IT WAS A NEGOTIATING STRATEGY HE SAID THIS IS THE BEGINNING OF WHAT WILL BE A PROTRACTED LEGISLATIVE DISCUSSION SOME BUSINESS PEOPLE SAID THEY WEREN'T HOPEFUL ABOUT NEGOTIATING WITH THE WHITE HOUSE IN AN INTERVIEW P. ROY VAGELOS CHAIRMAN AND CHIEF EXECUTIVE OF MERCK AND COMPANY THE GIANT PHARMACEUTICAL CONCERN SAID WE WOULD LOVE TO WORK WITH THEM WE'VE TRIED REPEATEDLY TO GET WITH THEM UNFORTUNATELY WE'RE ALWAYS LEFT WITH THE FEELING IF WE'RE NOT SUPPORTIVE OF WHAT THEY WANT WE'LL BE EXCLUDED SO YOU'RE EITHER A SUPPORTER OR AN ENEMY QUOTE WE'RE SORRY THEY FEEL THAT WAY REPLIED JEFF ELLER A WHITE HOUSE SPOKESMAN WE THINK THAT WE HAVE TRIED TO BE AS OPEN AS POSSIBLE WHILE AT THE SAME TIME BEING CONSISTENT WITH THE PRESIDENT'S GOALS WHICH INCLUDE COVERAGE FOR ALL AMERICANS WE WANT TO CONTINUE WE WANT A CONSTRUCTIVE DIALOGUE AMID THE RHETORIC TWO NEW STUDIES WERE ADDED TO THE HEALTH CARE DEBATE REPUBLICANS SAID THE FIRST A REPORT BY THE JOINT COMMITTEE ON TAXATION SUPPORTS THEIR CONCERNS THAT THE CLINTON PLAN'S PROPOSED EMPLOYER MANDATE WOULD BRING JOB AND WAGE LOSSES BUT THE OTHER A PRELIMINARY ANALYSIS BY GEORGE WASHINGTON UNIVERSITY'S CENTER FOR HEALTH POLICY RESEARCH SUGGESTS THAT LOW INCOME PEOPLE WOULD BE LEFT STRANDED WITHOUT THE REQUIRED EMPLOYER CONTRIBUTIONS UNDER THE PROPOSAL FAVORED BY THE ROUNDTABLE IT SAID A MOTHER WHO HAS TWO CHILDREN AND EARNS TWENTY THREE THOUSAND SEVEN HUNDRED EIGHTY DOLLARS A YEAR WOULD HAVE TO BUDGET MORE THAN FIFTEEN PERCENT OF HER INCOME FOR HEALTH INSURANCE PREMIUMS ALONE ACTIONS IN THE HOUSE AND THE SENATE APPEARED TO REMOVE A TRADITIONAL OBSTACLE TO PASSAGE OF A NATIONWIDE BANKING BILL THE TOP LEGISLATIVE GOAL OF MANY OF THE NATION'S LARGEST BANKS A HOUSE BANKING COMMITTEE PANEL VOTED UNANIMOUSLY TO ALLOW BANKS TO ESTABLISH NATIONWIDE BRANCH SYSTEMS IN THE SENATE MEANWHILE SENATOR CHRISTOPHER DODD D. CONNECTICUT WITHDREW AN INSURANCE AMENDMENT THAT HAS BLOCKED PASSAGE OF NATIONWIDE BANKING IN THE PAST THE ACTIONS FOLLOW MONTHS OF LOBBYING BY LEADERS OF MAJOR BANK COMPANIES WHICH ARGUE THAT THE CREATION OF INTERSTATE BRANCH NETWORKS COULD SAVE THE INDUSTRY BILLIONS OF DOLLARS ANNUALLY BY ALLOWING THEM TO CONSOLIDATE OPERATIONS IN DIFFERENT STATES INTO UNIFIED NETWORKS PASSAGE OF SUCH A PLAN WOULD TRIGGER A WAVE OF ACQUISITIONS AS COMPANIES SUCH AS BANKAMERICA CORPORATION AND NATIONSBANK CORPORATION SCRAMBLE TO ESTABLISH CROSS COUNTRY EMPIRES ACCELERATING THE CURRENT INDUSTRY CONSOLIDATION NATIONWIDE BRANCH NETWORKS WOULD MAKE IT EASIER FOR CONSUMERS AND BUSINESSES TO USE ONE BANK TO MEET ALL THEIR BANKING NEEDS NO MATTER WHERE THEY ARE IN THE COUNTRY FOR YEARS EFFORTS TO ALLOW THE CREATION OF NATIONWIDE BANKING NETWORKS HAVE FAILED BECAUSE INSURANCE AGENTS A POLITICALLY POWERFUL GROUP HAVE TRIED TO USE THE BILLS AS VEHICLES FOR LIMITS ON INSURANCE SALES BY BANKS THE ADDITION OF INSURANCE RESTRICTIONS TO PREVIOUS BILLS TURNED THE BANKING INDUSTRY AGAINST THE LEGISLATION BECAUSE BANKS WANT TO PRESERVE THEIR RIGHT TO SELL A WIDER RANGE OF FINANCIAL PRODUCTS SUCH AS INSURANCE AND MUTUAL FUNDS ALTHOUGH INSURANCE AND OTHER ISSUES COULD DERAIL THE BILL AS IT WORKS ITS WAY THROUGH CONGRESS THE CHANCES OF PASSAGE THIS YEAR ARE STRONGER THAN EVER YESTERDAY'S CONGRESSIONAL ACTION QUOTE IS VERY GOOD FOR INTERSTATE IT OPENS UP THE POSSIBILITY OF PASSAGE SAID EDWARD YINGLING CHIEF LOBBYIST FOR THE AMERICAN BANKERS ASSOCIATION IN THE HOUSE BANKING COMMITTEE THE SUBCOMMITTEE ON FINANCIAL INSTITUTIONS VOTED TWENTY NINE TO ZERO FOR AN INTERSTATE PLAN THE BILL AVOIDS ANY REFERENCE TO INSURANCE AND SUBCOMMITTEE CHAIRMAN STEPHEN NEAL D. N. C. EXPRESSED CONFIDENCE THAT THE BILL WILL MAKE IT THROUGH THE FULL BANKING COMMITTEE AND THE HOUSE THE SENATE BANKING COMMITTEE IS SCHEDULED TO TAKE UP AN INTERSTATE BILL ON FEBRUARY TWENTY THIRD IN THE PAST SENATOR DODD HAS OFFERED AN AMENDMENT TO RESTRICT THE CURRENT ABILITY OF NATIONALLY CHARTERED BANKS TO SELL INSURANCE NATIONWIDE THROUGH UNITS IN SMALL TOWNS BUT IN A STATEMENT LAST NIGHT SENATOR DODD SAID HE WAS WITHDRAWING HIS INSURANCE AMENDMENT BECAUSE HE HADN'T BEEN ABLE TO WORK OUT A PLAN THAT COULD WIN SENATE PASSAGE WHILE I WILL CONTINUE TO SUPPORT LEGISLATION TO RATIONALIZE BANK SALES OF INSURANCE I DO NOT WANT TO HOLD UP INTERSTATE BRANCHING LEGISLATION HE SAID ONE YEAR AFTER ENACTMENT THE FEDERAL RESERVE BOARD WOULD BE ABLE TO ALLOW BANK HOLDING CONCERNS OR FOREIGN BANKS TO BUY BANKS ANYWHERE IN THE NATION EIGHTEEN MONTHS AFTER ENACTMENT A BANK HOLDING COMPANY WITH UNITS IN MORE THAN ONE STATE CAN CONSOLIDATE THEM INTO ONE SYSTEM THREE YEARS AFTER ENACTMENT AND EARLIER IF STATES AGREE THE COMPTROLLER OF THE CURRENCY WHICH REGULATES NATIONALLY CHARTERED BANKS MAY APPROVE THESE BANKS' APPLICATIONS TO ACQUIRE BANKS ACROSS STATE LINES A NUMBER OF CONSUMER AND OTHER AMENDMENTS STILL COULD END UP SLOWING OR BLOCKING PASSAGE OF THE LEGISLATION WHENEVER YAACOV NIMRODI STARTS TALKING ABOUT HIS LIFE'S ADVENTURES HIS BOYISH FACE LIGHTS UP SOON THE SIXTY SEVEN YEAR OLD ISRAELI SPY TURNED BUSINESSMAN IS BOUNDING ACROSS HIS STUDY TO THE MAHOGANY BOOKSHELVES PULLING DOWN OLD PHOTO ALBUMS QUOTE HERE'S ADNAN AND ME IN ITALY DURING MY DAUGHTER'S HONEYMOON QUOTE HE SAYS DISPLAYING A SNAPSHOT OF THE NIMRODI CLAN DINING LAST FALL WITH ADNAN KHASHOGGI THE SAUDI ARABIAN FINANCIER MR. NIMRODI SMILES ADNAN IS A GREAT MAN HE SAYS HE LOVES PEACE HE LOVES ISRAEL ADNAN KHASHOGGI AND YAACOV NIMRODI THE ARMS DEALING DUO WHO HELPED BRING THE WORLD THE IRAN CONTRA FIASCO ARE BACK POOLING THEIR CHUTZPAH AGAIN FOR A NEW ERA IN THE MIDEAST THIS TIME THE GUNRUNNERS WHO HAVE TRAVELED THE WORLD TARGETING A BUCK HAVE SWORN OFF THE BUSINESS OF DEATH INSTEAD THEY ARE PLOWING THEIR MONEY INTO PEACE MESSRS KHASHOGGI AND NIMRODI ARE ANGLING TO BECOME THE LEADING INDUSTRIALISTS IN THE GAZA STRIP AFTER ISRAEL'S ANTICIPATED WITHDRAWAL LATER THIS YEAR THEIR PLANS COVER THE WATERFRONT IN THE WORKS ARE A TELECOMMUNICATIONS SYSTEM ELECTRIC POWER GENERATOR DESALINIZATION PLANT PIPE FACTORY A MUSLIM PILGRIMAGE COMPANY INVESTMENT BANK RAILROAD EVEN AN AIRLINE IN ALL MR. NIMRODI SAYS THE INVESTMENTS COULD REACH FIVE HUNDRED MILLION DOLLARS THE COMRADES IN ARMS AREN'T EQUAL PARTNERS IN EVERY PLANNED VENTURE SOME OF THE PROJECTS ARE TAKING SHAPE ABOARD THE PERIPATETIC MR. KHASHOGGI'S D. C. NINE JET WHILE OTHERS ARE EVOLVING HERE IN MR. NIMRODI'S GATSBY ESQUE MANSION NEAR TEL AVIV BUT THE TWO ADVENTURERS ARE WORKING WITH EACH OTHER AND WITH THE WORLD BANK TO FORM SEVERAL LARGE INDUSTRIAL COMPANIES THAT WOULD BE OWNED BY ISRAELI PALESTINIAN AND OTHER ARAB INVESTORS THIS ISN'T CHARITY WE'RE FULLY PROFIT ORIENTED THE FIFTY EIGHT YEAR OLD MR. KHASHOGGI SAYS IN HIS PARIS TOWNHOUSE WITH HIS U. S. BANKRUPTCY PROBLEMS BEHIND HIM MR. KHASHOGGI SAYS HE IS FOCUSING ON RUSSIA IRAN AND THE MIDEAST IN THE PAST TWO YEARS HE SAYS HE HAS MADE NEARLY THREE MILLION DOLLARS ON THE TEL AVIV STOCK EXCHANGE QUOTE IF WE CAN HELP THE PALESTINIANS TODAY QUOTE HE SAYS QUOTE WE'LL PROFIT LATER ON QUOTE MR. KHASHOGGI SAYS HE HAS BEEN SECRETLY SOWING SEEDS IN ISRAEL FOR YEARS AS FAR BACK AS NINETEEN SIXTY SEVEN THE CONFIDANT OF SAUDI KINGS OPENED CLANDESTINE LINKS WITH WESTERN JEWS MOSSAD AGENTS AND ISRAELI POLITICIANS IN AN EFFORT TO BRIDGE THE ARAB ISRAELI DIVIDE THE CONTACTS WERE A RISKY BREACH OF THE ARAB BOYCOTT OF ISRAEL BUT NOW THAT PEACE SEEMS AT HAND MR. KHASHOGGI IS EMERGING FROM THE SHADOWS MY ROLE HAS ALWAYS BEEN A SOFT ONE HE SAYS I WAS JUST OPENING DOORS THE KHASHOGGI VISION IS SIMPLE FORGE PEACE THROUGH COMMERCE ADNAN HAS ALWAYS HAD THIS NOTION OF MARRYING THE ENERGY AND BUSINESS ACUMEN OF THE ISRAELI WITH THE CAPITAL OF THE ARAB WORLD SAYS KENNETH BIALKIN THE FINANCIER'S LONG TIME U. S. LAWYER AND A PARTNER IN THE NEW YORK FIRM OF SKADDEN ARPS SLATE MEAGHER AND FLOM AS A FORMER CHAIRMAN OF THE CONFERENCE OF PRESIDENTS OF MAJOR AMERICAN JEWISH ORGANIZATIONS MR. BIALKIN HAS INTRODUCED MR. KHASHOGGI TO MANY POWERFUL ISRAELIS OVER THE YEARS HE HAS ALWAYS SAID IN A JOCULAR WAY THAT IF WE CAN'T MAKE PEACE PERHAPS WE CAN MAKE MONEY MR. BIALKIN SAYS THAT IS NAIVE SAYS NASSER NASHASHIBI SCION OF ONE OF JERUSALEM'S OLDEST PALESTINIAN FAMILIES AND A PAL OF THE SAUDI I KNOW MR. KHASHOGGI'S CONCEPT OF PEACE IS THAT BUSINESS HAS NO NATIONALITY MR. NASHASHIBI SAYS BUT HE ISN'T MATURE POLITICALLY IF HE ACCEPTS ANY ADVICE FROM ME IT'S TO REMEMBER HE'S A MUSLIM AND AN ARAB DON'T RUSH INTO BUSINESS AND LOSE FRIENDS TO WIN ENEMIES QUOTE THERE ARE ISRAELIS WHO WOULD GIVE YAACOV NIMRODI THE SAME ADVICE BORN IN BAGHDAD AND RAISED IN JERUSALEM MR. NIMRODI BECAME ONE OF THE YOUNG JEWISH STATE'S MOST GIFTED SPY MASTERS IN INTELLIGENCE CIRCLES HE IS LEGENDARY FOR HIS MASTERY OF THE LANGUAGE AND MANNERISMS OF ARABS AND PERSIANS SKILLS HE USED TO RECRUIT SOME OF ISRAEL'S BEST SPIES IN THE MID NINETEEN FIFTIES MR. NIMRODI WAS SENT TO TEHRAN AS ISRAEL'S SECRET MILITARY ATTACHE TO IRAN THOUGH ISRAEL AND IRAN HAD NO FORMAL DIPLOMATIC TIES THE YOUNG COLONEL REMAINED IN TEHRAN FOR TWENTY FOUR YEARS THE FIRST FOURTEEN FOR ISRAEL THE LAST TEN FOR HIMSELF HE BUILT THE SHAH'S INTELLIGENCE AGENCY WHILE EARNING HUGE COMMISSIONS ON SOME TWO HUNDRED FIFTY MILLION DOLLARS A YEAR IN ARMS SALES TO IRAN THAT IS HOW HE GOT TO KNOW MR. KHASHOGGI WHO AMASSED AND LATER SPENT ONE OF THE WORLD'S BIGGEST FORTUNES BY BROKERING ARMS TO SAUDI ARABIA THEY MET IN PARIS IN NINETEEN SEVENTY FIVE THE RENDEZVOUS WAS ARRANGED BY THE LATE HERMAN HANK GREENSPUN PUBLISHER OF THE LAS VEGAS SUN NEWSPAPER AND A HERO IN ISRAEL FOR SMUGGLING GUNS TO THE JEWISH STATE IN ITS WAR OF INDEPENDENCE IN NINETEEN FORTY EIGHT MR. GREENSPUN KNEW MR. KHASHOGGI THROUGH EUGENE WARNER ANOTHER JEWISH ACTIVIST IN LAS VEGAS AND AN ADVISER TO THE SAUDI TYCOON MR. WARNER WHO LIVES AT THE SANDS HOTEL AND CASINO IN LAS VEGAS DIDN'T RETURN PHONE CALLS FOR THIS ARTICLE BUT MR. KHASHOGGI SAYS HE MET MR. WARNER IN NINETEEN FIFTY EIGHT ON A VISIT TO NEVADA AS A GUEST OF HOWARD HUGHES HE DESCRIBES MR. WARNER AS MY LAS VEGAS REAL ESTATE AGENT ASSOCIATES OF BOTH MEN SAY MR. WARNER TRAVELED WIDELY WITH MR. KHASHOGGI FOR DECADES INCLUDING MANY TRIPS TO SAUDI ARABIA WHERE JEWS ARE LEGALLY BARRED SAUDI ARABIA ALSO FORBIDS ITS CITIZENS TO DO BUSINESS WITH ISRAEL WITH MR. WARNER THE SAUDI MET OTHER PROMINENT JEWS AND ISRAELIS ALL THESE JEWISH FRIENDS OF MINE ENDORSED ME TO THE ISRAELIS MR. KHASHOGGI EXPLAINS SO THEY WOULDN'T FEAR ME AT THEIR NINETEEN SEVENTY FIVE INTRODUCTION MESSRS KHASHOGGI AND NIMRODI WERE JOINED BY ADOLPH AL SCHWIMMER THE ISRAELI AMERICAN FOUNDER OF ISRAEL AIRCRAFT INDUSTRIES THE COUNTRY'S BIGGEST DEFENSE CONTRACTOR A DECADE LATER MR. SCHWIMMER WOULD PARTICIPATE WITH THEM IN THE IRAN CONTRA AFFAIR AT THE PARIS MEETING THEY DISCUSSED WAYS OF OPENING LINKS BETWEEN ISRAEL AND SAUDI ARABIA AND MR. KHASHOGGI WHO WAS CLOSE TO ANWAR AL SADAT CONVEYED THE EGYPTIAN PRESIDENT'S READINESS FOR PEACE WITH ISRAEL MR. SCHWIMMER DECLINES TO COMMENT ACCORDING TO ARABS AND ISRAELIS WHO KNOW BOTH MEN MESSRS KHASHOGGI AND NIMRODI ARRANGED ARMS TRANSACTIONS LONG BEFORE THE FIRST IRAN CONTRA DEAL IN NINETEEN EIGHTY FIVE BOTH OF THEM HOWEVER NOW DENY THIS THEY DABBLED IN DIPLOMACY AS EGYPT AND ISRAEL WERE NEGOTIATING PEACE IN THE LATE NINETEEN SEVENTIES MR. KHASHOGGI FLOATED A PROPOSAL BY KING FAHD THEN THE SAUDI CROWN PRINCE FOR PEACE WITH ISRAEL IN EXCHANGE FOR SAUDI CONTROL OF THE MUSLIM HOLY SITES IN JERUSALEM AS AN ADDED INCENTIVE SAYS MR. NIMRODI THE SAUDIS DANGLED SOME ONE HUNDRED BILLION DOLLARS OF INVESTMENT CAPITAL FOR THE REGION TO UNDERWRITE DEVELOPMENT MR. NIMRODI TOOK THE OFFER TO ISRAELI PRIME MINISTER MENACHEM BEGIN WHO DISCUSSED IT WITH MR. KHASHOGGI IN NEW YORK MR. KHASHOGGI RECALLS THAT MR. BEGIN WHO DIED IN NINETEEN NINETY TWO TOLD ME THAT BEFORE WE COULD TALK ABOUT JERUSALEM WE NEEDED TO MAKE TOTAL PEACE I SAID SIR PART OF TOTAL PEACE IS TO FLY THE SAUDI FLAG OVER THE MOSQUES HE DIDN'T BUY IT HE LECTURED ME FOR TWO AND ONE HALF HOURS ON THE HISTORY OF THE JEWS AND SAID JERUSALEM WASN'T FOR SALE QUOTE THE PLOTS THICKENED ACCORDING TO MR. NIMRODI IN NINETEEN EIGHTY ONE AFTER MANY FORTUNES WERE WIPED OUT IN THE IRANIAN REVOLUTION MESSRS KHASHOGGI NIMRODI AND SCHWIMMER DECIDED TO OVERTHROW AYATOLLAH RUHOLLAH KHOMEINI IN MOROCCO MESSRS NIMRODI AND KHASHOGGI SAY THEY RECRUITED THE LATE SHAH'S SON PRINCE REZA PAHLAVI TO LEAD THE EFFORT THE MERCENARIES WOULD BE FUNDED BY RIYADH ARMED BY ISRAEL AND TRAINED IN SUDAN ACCORDING TO MR. NIMRODI THERE FOLLOWED A GATHERING AT MR. KHASHOGGI'S SAFARI RANCH IN SOUTHERN KENYA IN MAY NINETEEN EIGHTY TWO ALONG WITH MESSRS NIMRODI AND SCHWIMMER CAME ARIEL SHARON THEN ISRAELI DEFENSE MINISTER AND DAVID KIMCHE THEN DIRECTOR GENERAL OF ISRAEL'S FOREIGN MINISTRY AND LATER A KEY ISRAELI REPRESENTATIVE IN THE IRAN CONTRA AFFAIR MR. KHASHOGGI SAYS HE HAD KNOWN MR. KIMCHE FROM THE ISRAELI'S DAYS AS A MOSSAD AGENT IN PARIS IN THE NINETEEN SIXTIES MR. KHASHOGGI BROUGHT ALONG SUDANESE PRESIDENT GAFAAR NUMEIRI WHO HAS SINCE BEEN DEPOSED ACCORDING TO MR. NIMRODI EVERYTHING WAS SET MR. SHARON AGREED TO PROVIDE SURPLUS ISRAELI WEAPONRY FOR AS MUCH AS ONE BILLION DOLLARS BEING OFFERED BY SAUDI ARABIA THE SUDANESE PRESIDENT WAS HAPPY TO HOST THE GUERRILLAS IN EXCHANGE FOR CASH AND ISRAELI HELP IN CONTAINING LIBYAN LEADER MOAMMAR GADHAFI THE CENTRAL INTELLIGENCE AGENCY WHICH WAS KEPT ABREAST OF THE PLAN DIDN'T INTERFERE MR. NIMRODI SAYS THE C. I. A. DECLINES TO COMMENT BUT THE MOSSAD INTELLIGENCE SERVICE DESPITE DEFENSE MINISTER SHARON'S INVOLVEMENT ULTIMATELY KILLED THE SCHEME THE MOSSAD HAD CONCLUDED IN THIS AND OTHER CASES THAT IT WAS NOT A GOOD IDEA TO TRUST ARABS EXPLAIN AUTHORS DAN RAVIV AND YOSSI MELMAN IN THEIR NINETEEN NINETY BOOK EVERY SPY A PRINCE YITZHAK HOFI THE MOSSAD'S CHIEF AT THE TIME RESENTED THE ENCROACHMENT ON HIS TURF BY MESSRS KHASHOGGI AND NIMRODI AND SENT WORD TO THE BABY SHAH AS THE PRINCE WAS KNOWN NOT TO WORK WITH THEM THE AUTHORS WRITE THE KENYA MEETING PROVED INSTRUMENTAL HOWEVER IN ISRAEL'S EVACUATION OF THOUSANDS OF FAMINE STRICKEN JEWS FROM ETHIOPIA THANKS TO MR. SHARON'S REQUEST TO MR. NUMEIRI MANY JEWS WERE AIRLIFTED TO ISRAEL FROM SUDAN'S CAPITAL KHARTOUM MR. SHARON AND MR. KIMCHE WERE TRAVELING AND COULDN'T BE REACHED FOR COMMENT IN NINETEEN EIGHTY FOUR WHEN WORD BROKE ABOUT THE RESCUE OPERATION YASSER ARAFAT LEADER OF THE PALESTINE LIBERATION ORGANIZATION WAS ANGRY AT MR. KHASHOGGI FOR HELPING ISRAEL SO THE SAUDI TYCOON WHO HAD NEVER MET MR. ARAFAT PAID HIM A VISIT I WALKED INTO HIS OFFICE AND YASSER WAS WEARING HIS GUN SO I SAID SHOOT ME MR. KHASHOGGI SAYS WE LAUGHED AND KISSED FOR THE NEXT SEVERAL MONTHS MR. KHASHOGGI SAYS HE CARRIED PEACE FEELERS BETWEEN MR. ARAFAT AND SHIMON PERES ISRAEL'S PRIME MINISTER AT THE TIME THE CONTACTS DIDN'T GO ANYWHERE BUT MR. KHASHOGGI'S RAPPORT WITH MR. PERES WHOM HE HAD KNOWN THROUGH MR. SCHWIMMER WOULD BE CRUCIAL IN THE NEXT ADVENTURE TRADING ARMS FOR HOSTAGES WITH IRAN THE IRAN CONTRA ESCAPADE STRAINED THE LONG KHASHOGGI NIMRODI RELATIONSHIP THOUGH MR. KHASHOGGI HAD INTRODUCED IRANIAN MIDDLEMAN MANUCHER GHORBANIFAR TO THE ISRAELIS AND PROVIDED BRIDGE LOANS FOR THE SECRET WEAPONS DEALS HE AND HIS OUTSIDE PARTNERS LOST AT LEAST SEVEN MILLION DOLLARS IN THE FIASCO ACCORDING TO THE FINAL REPORT OF SPECIAL PROSECUTOR LAWRENCE WALSH MUCH OF THEIR MONEY WAS DIVERTED TO NICARAGUA'S REBELS WHO WERE TRYING TO OUST THE SANDINISTA GOVERNMENT BY LIEUTENANT COLONEL OLIVER NORTH MR. WALSH CONCLUDED BY NINETEEN EIGHTY EIGHT AFTER MR. KHASHOGGI'S TRIAD AMERICAN CORPORATION HAD COLLAPSED THE SAUDI ISRAELI MACHINATIONS WERE BACK ON MR. KHASHOGGI AGREED TO MEET IN LONDON WITH MEYER KAPLAN A NIMRODI PROTEGE WHO WAS STARTING A COMPANY TO BRING MUSLIM PILGRIMS TO JERUSALEM BRAINSTORMING TOGETHER MR. KHASHOGGI ADVISED MR. KAPLAN THAT ISRAEL'S CHIEF RABBI SHOULD INVITE MOROCCO'S KING HASSAN THE SECOND A NOTED ARAB MODERATE TO JERUSALEM TO PRAY MR. KHASHOGGI ALSO HELPED OPEN CONTACTS FOR THE ISRAELI WITH TOURISM OFFICIALS IN JORDAN AND OFFERED TO INVEST ONE MILLION DOLLARS IN THE ENTERPRISE HIMSELF THE MONEY HOWEVER STILL HASN'T ARRIVED IN JERUSALEM NOR HAS KING HASSAN THE SECOND ADNAN IS BRILLIANT HE PENETRATES TO THE HEART OF THE PROBLEM BETWEEN MUSLIM AND JEW SAYS MR. KAPLAN A RETIRED ISRAELI POLICE DETECTIVE AND HEAD OF MR. NIMRODI'S ZIARA INTERNATIONAL THE QUOTE INTIFADA QUOTE OR PALESTINIAN UPRISING BRED STILL MORE KHASHOGGI INITIATIVES IN NINETEEN EIGHTY NINE AT THE HEIGHT OF THE REBELLION MR. KHASHOGGI PROPOSED THAT ISRAEL SIMPLY ABANDON THE GAZA STRIP HE AND SOME ARAB BACKERS WOULD STEP IN AND WITH TWENTY BILLION DOLLARS OR SO TURN THE SWATH OF SAND DUNES AND REFUGEE CAMPS INTO A CROSS BETWEEN LAS VEGAS AND HONG KONG MR. KHASHOGGI DISCUSSED THE PLAN IN PARIS WITH MR. SHARON THEN ISRAEL'S HOUSING MINISTER I TOLD HIM THE ONLY SOLUTION FOR GAZA WAS TO WALK OUT MR. KHASHOGGI RECALLS LET THE ARABS WORRY ABOUT IT WITH ISRAELI PRIME MINISTER YITZHAK SHAMIR'S KNOWLEDGE MR. NIMRODI EXPLORED THE CONCEPT FURTHER WITH BASSAM ABU SHERIF A CLOSE P. L. O. ASSOCIATE OF MR. ARAFAT THOUGH THE PERSIAN GULF WAR SPECIFICALLY SAUDI ANGER AT THE P. L. O. FOR SYMPATHIZING WITH IRAQ KILLED THE PROPOSAL MESSRS KHASHOGGI AND NIMRODI TAKE CREDIT FOR LEADING THE WAY TO LAST SEPTEMBER'S AGREEMENT CALLING FOR ISRAEL'S EVENTUAL WITHDRAWAL FROM THE GAZA STRIP AND THE CITY OF JERICHO THIS WAS THE BEGINNING OF WHAT I CALL THE OPENING OF THE ISRAELI MIND MR. KHASHOGGI SAYS ADDS MR. NIMRODI ARAFAT AND RABIN TOOK THE GAZA IDEA FROM US AFTER THE GULF WAR AND THE MIDEAST PEACE CONFERENCE IN MADRID THE PACE QUICKENED MR. KHASHOGGI BEGAN INVESTING HEAVILY IN ISRAELI STOCKS HE TRIED TO ORGANIZE A VISIT TO JERUSALEM BY ONE HUNDRED SAUDIS BUT WAS STYMIED BY JORDAN'S KING HUSSEIN A BOARDING SCHOOL CLASSMATE WHO WOULDN'T LET THE GROUP TRAVEL THROUGH AMMAN LAST YEAR AFTER ENGINEERING COLONEL GADHAFI'S THREE HUNDRED SEVEN MILLION DOLLAR INVESTMENT IN A CHAIN OF LONHRO P. L. C. HOTELS MR. KHASHOGGI PERSUADED THE LIBYAN LEADER TO SEND TWO HUNDRED MUSLIM PILGRIMS TO JERUSALEM VIA MR. NIMRODI'S COMPANY COLONEL GADHAFI HOPED THE GESTURE WOULD ERODE HIS INTERNATIONAL ISOLATION CAUSED BY THE NINETEEN EIGHTY EIGHT PAN AM JET BOMBING OVER LOCKERBIE SCOTLAND IN WHICH TWO HUNDRED SEVENTY PEOPLE WERE KILLED BUT THE TRIP BACKFIRED AMID A SWIRL OF ISRAELI PALESTINIAN AND LIBYAN RECRIMINATIONS GADHAFI'S A FRIEND OF THE PEACE PROCESS MR. KHASHOGGI CONTENDS THEIR GAZA BUSINESS PLANS BEGAN CHURNING NEARLY A YEAR AGO MONTHS BEFORE THE ISRAELI P. L. O. AGREEMENT WAS SIGNED MR. NIMRODI PROPOSED TO HIS OLD FRIEND THAT THEY BUILD A TWENTY FIVE MILLION DOLLAR FACTORY TO PRODUCE HIGH CAPACITY WATER AND SEWAGE PIPE FOR EXPORT THROUGHOUT THE MIDEAST PARTICULARLY LIBYA THE PARTNERS CREATED A THREE WAY JOINT VENTURE WITH AN ITALIAN PIPEMAKER AND GOT THE ISRAELI GOVERNMENT TO RELEASE THIRTY EIGHT ACRES OF LAND FOR THE PLANT ON THE EDGE OF THE GAZA STRIP LAST FALL MR. KHASHOGGI MET WITH ISRAEL'S ECONOMIC MINISTER SHIMON SHETREET IN GENEVA TO DISCUSS THE PLAN GROUNDBREAKING IS SCHEDULED IN SIX MONTHS FIVE HUNDRED GAZA ARABS ARE EXPECTED TO WORK IN THE PLANT THAT IS JUST FOR STARTERS MR. KHASHOGGI'S THIRD WIFE TWENTY NINE YEAR OLD SHAPURI A COUSIN OF THE LATE SHAH OF IRAN HAS COLLECTED FIFTEEN MILLION DOLLARS TO BUILD A CHILDREN'S HOSPITAL IN THE GAZA STRIP SHE RECENTLY VISITED ISRAEL TO MAKE CONTACTS MR. KHASHOGGI HIMSELF IS RAISING CAPITAL FOR AN ARAB ISRAELI INVESTMENT BANK AND MR. NIMRODI RECENTLY VISITED KUWAIT ON A QUOTE NON ISRAELI QUOTE PASSPORT HE SAYS TO BUY A TEN PERCENT STAKE IN SHOROUK AIRLINES A KUWAITI EGYPTIAN VENTURE THAT PLANS TO FLY TO JERUSALEM FROM CAIRO AND KUWAIT NEXT UP MESSRS NIMRODI AND KHASHOGGI HAVE SUBMITTED A PROPOSAL TO THE P. L. O. AND WORLD BANK FOR A SIXTY MILLION DOLLAR GENERATOR TO HANDLE GAZA'S ELECTRICITY NEEDS AND TO POWER A DESALINIZATION PLANT THAT WOULD SUPPLY WATER FOR ONE MILLION PEOPLE MR. NIMRODI WHO OWNS A DESALINIZATION TECHNOLOGY COMPANY IN ISRAEL HAS BEEN DEVELOPING THE PROJECT FOR YEARS ADNAN AND ME WE KNOW HOW TO GET MONEY WE HAVE THE RIGHT CONNECTIONS WE CAN DEVELOP THE ECONOMY TO PUT ARABS AND JEWS TO WORK MR. NIMRODI GUSHES MR. KHASHOGGI REMAINS A LITTLE MORE COY I DON'T WANT THIS IMPRESSION TO BE LEFT THAT BECAUSE I'M DOING ONE OR TWO TRANSACTIONS WITH YAACOV HE'S MY ONLY AGENT HE SAYS I KNOW LOTS OF ISRAELIS PERHAPS WALL STREET BROKERAGE FIRMS AREN'T AS SHY ABOUT PROGRAM TRADING AS THEY HAD BEEN IN A REVERSAL OF THE TREND SINCE THE NINETEEN EIGHTY SEVEN STOCK MARKET CRASH MOST OF THE COMPUTER AIDED PROGRAM TRADING DONE LAST WEEK ON THE NEW YORK STOCK EXCHANGE WAS BY BIG BOARD BROKERAGE FIRMS TRADING FOR THEIR OWN ACCOUNTS RATHER THAN FOR CUSTOMERS IN ITS REGULAR WEEKLY REPORT THE BIG BOARD SAID FIFTY EIGHT POINT EIGHT PERCENT OF LAST WEEK'S PROGRAM TRADING WAS FOR THE FIRMS' OWN ACCOUNTS OR QUOTE AS PRINCIPAL QUOTE THE AVERAGE WAS FORTY FOUR POINT FIVE PERCENT FOR ALL OF NINETEEN NINETY THREE AND IT WASN'T A CASE OF A SINGLE FIRM THROWING OFF THE AVERAGE ALL FIVE OF THE MOST ACTIVE PROGRAM TRADING FIRMS FOR THE WEEK ENDED JANUARY TWENTY EIGHTH EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS THE BIG BOARD SAID THESE FIRMS WERE MORGAN STANLEY GROUP INCORPORATED WHICH HAS SAID PREVIOUSLY THAT ITS PROGRAM TRADING OPERATION IS GEARED MAINLY FOR CUSTOMERS SUSQUEHANNA INVESTMENT GROUP U. B. S. SECURITIES C. S. HOLDING A. G.'S C. S. FIRST BOSTON INCORPORATED AND COOPER NEFF AND ASSOCIATES TRADERS COULDN'T REMEMBER A RECENT WEEK WHEN ALL FIVE MOST ACTIVE FIRMS TRADED MOSTLY FOR THEIR OWN ACCOUNTS PROGRAM TRADING IS THE RAPID COMPUTER AIDED TRADING OF LONG LISTS OF STOCKS OFFICIALLY AT LEAST FIFTEEN STOCKS WITH A TOTAL VALUE OF ONE MILLION DOLLARS OR MORE THE ACTIVITY HIT A RECORD ELEVEN POINT NINE PERCENT OF OVERALL BIG BOARD VOLUME LAST YEAR UNLESS THIS IS A ONE WEEK ABERRATION THE STATISTICS SUGGEST THAT WALL STREET BROKERAGE FIRMS AREN'T AS SENSITIVE TO THE CONTROVERSY OVER PROGRAM TRADING AS THEY WERE AFTER THE CRASH WHEN MANY CURTAILED THEIR PRINCIPAL TRADING AND OTHERS CEASED TRADING ENTIRELY THE CLINTON ADMINISTRATION UNVEILED ITS PLAN FOR REWRITING THE SUPERFUND LAW TO MIXED REVIEWS FROM MEMBERS OF CONGRESS ENVIRONMENTALISTS AND INDUSTRY THE PROPOSAL ANNOUNCED YESTERDAY BY CAROL BROWNER HEAD OF THE ENVIRONMENTAL PROTECTION AGENCY INCLUDES A NEW NON JUDICIAL ARBITRATION PROCESS AIMED AT REMOVING SUPERFUND DISPUTES FROM THE COURTS A NEW TAX ON COMMERCIAL INSURANCE COMPANIES SET TO RAISE THREE POINT ONE BILLION DOLLARS OVER FIVE YEARS TO BE USED TO SETTLE SUPERFUND RELATED LAWSUITS BETWEEN POLLUTING BUSINESSES AND THEIR INSURERS AND A RELAXATION OF CLEANUP STANDARDS UNDER CERTAIN CONDITIONS WHICH THE ADMINISTRATION CONTENDS WILL REDUCE CLEANUP COSTS AS MUCH AS TWENTY FIVE PERCENT THE KEY DEMOCRATIC LEADERS ON THE ISSUE AGREED TO SPONSOR OR COSPONSOR THE ADMINISTRATION'S BILL THOUGH IT IS EXPECTED THEY WILL WORK TO CHANGE SOME OF IT ONE OF THEM REPRESENTATIVE AL SWIFT D. WASHINGTON CALLED THE BILL QUOTE A GOOD BEGINNING QUOTE REACTION BY BUSINESS AND ENVIRONMENTALISTS WAS SIMILARLY AMBIVALENT WITH BUSINESSES GENERALLY HOPING TO REDUCE THE LIABILITY OF INDIVIDUAL COMPANIES EVEN FURTHER AND ENVIRONMENTALISTS HOPING TO SHORE UP THE POLLUTER PAYS PRINCIPLE BEHIND THE SUPERFUND AND TO STIFFEN THE BILL'S CLEANUP REQUIREMENTS MAIN FEATURES OF THE PROPOSAL HAD BEEN DISCLOSED PREVIOUSLY BUT YESTERDAY'S ANNOUNCEMENT GAVE MORE DETAILS ON THE PROPOSED TAX ON INSURERS WHICH WOULD BE BASED ON PREMIUMS CHARGED ON COMMERCIAL POLICIES SINCE NINETEEN SEVENTY ONE THE ADMINISTRATION HOPES THE BILL WILL AT LEAST HALVE THE LITIGATION RELATED TO THE NINETEEN EIGHTY SUPERFUND LAW WHICH GOVERNS CLEANUP OF ABANDONED HAZARDOUS WASTE SITES THE MONEY RAISED FROM THE NEW INSURANCE TAX WOULD BE USED TO SETTLE LAWSUITS FILED AGAINST INSURERS BY POLLUTING COMPANIES HELD LIABLE FOR SUPERFUND CLEANUP COSTS PRIOR TO NINETEEN EIGHTY SIX WHEN THE BULK OF DUMPING SUBJECT TO THE SUPERFUND LAW OCCURRED LITIGATION COSTS PAID BY INSURERS REPRESENT ROUGHLY ONE THIRD OF ALL SUPERFUND LITIGATION COSTS BOTH LEVIES COULD BE DEDUCTED BY INSURERS AS A BUSINESS EXPENSE AND COMPANIES THAT COULD DEMONSTRATE THEY'VE WRITTEN FEW POLICIES RELATED TO SUPERFUND WOULD BE EXEMPT UNDER THE BILL THE E. P. A. WOULD CREATE A THREE HUNDRED MILLION DOLLAR FUND TO PICK UP SO CALLED ORPHAN SHARES OR PORTIONS OF SUPERFUND CLEANUP COSTS THAT AREN'T ASSIGNED TO A PARTICULAR COMPANY AN E. P. A. OFFICIAL SAID THAT THE MONEY WOULD COME FROM A SURPLUS IN REVENUE FROM AN EXISTING SUPERFUND TAX ON BUSINESSES UNDER THE NEW ALLOCATION SYSTEM A NON GOVERNMENTAL PARTY SUCH AS A NONPROFIT GROUP WOULD ASSIGN SUPERFUND CLEANUP COSTS AMONG BUSINESSES THAT POLLUTED AT A HAZARDOUS WASTE SITE IF A BUSINESS AGREED TO PAY THE AMOUNT REQUESTED IT COULDN'T BE SUED BY OTHER COMPANIES THAT CONTRIBUTED WASTE TO THE SITE AND SOUGHT TO SHIFT CLEANUP COSTS ELSEWHERE IF THE BUSINESS DIDN'T AGREE TO PAY THE AMOUNT REQUESTED IT COULD BE SUED BY THE OTHER COMPANIES AND THE FEDERAL GOVERNMENT COULD HOLD THE COMPANY RESPONSIBLE FOR THE ENTIRE COST OF CLEANING UP THE SITE POLLUTING BUSINESSES THAT CHOSE TO SETTLE SUPERFUND LAWSUITS WITH THEIR INSURERS DRAWING ON THE THREE POINT ONE BILLION DOLLAR FUND WOULD RECEIVE TWENTY PERCENT FORTY PERCENT OR SIXTY PERCENT OF CLEANUP COSTS DEPENDING ON WHETHER THE LAW IN THE STATE WHERE THE LAWSUIT WAS FILED FAVORED THE INSURER FAVORED NEITHER SIDE OR FAVORED THE POLLUTING BUSINESS A COMPANY THAT RECEIVED A GIVEN PERCENTAGE IN ONE SUPERFUND RELATED LAWSUIT AGAINST AN INSURER WOULD ALSO BE PLEDGING TO ACCEPT THE SAME PERCENTAGE TO SETTLE ANY FUTURE SUPERFUND RELATED DISPUTES WITH INSURERS MIKE MCGAVICK DIRECTOR OF THE AMERICAN INSURANCE ASSOCIATION'S SUPERFUND PROJECT WHO HELPED THE ADMINISTRATION CRAFT THE BILL SAID WITH PROPER MODIFICATION THIS COULD BE A GENUINE STEP FORWARD SIMILARLY FRED KRUPP EXECUTIVE DIRECTOR OF THE ENVIRONMENTAL DEFENSE FUND WHICH ALSO PARTICIPATED IN ADMINISTRATION DISCUSSIONS ON THE BILL SAID HIS GROUP IS GREATLY ENCOURAGED BY THE OVERALL STRUCTURE BUT WOULD PRESS FOR STRENGTHENING IMPROVEMENTS THE SIERRA CLUB HOWEVER TERMED THE SUPERFUND PROPOSAL A MAJOR RETREAT THAT WOULD SHIFT COSTS FROM POLLUTERS TO THE GOVERNMENT WITH NO NEW REVENUE TO PAY FOR IT LUXURY AUTO MAKER BAYERISCHE MOTOREN WERKE A. G. IS LIKELY TO REPORT NINETEEN NINETY THREE EARNINGS THAT ARE MORE THAN DOUBLE THE SIX MONTH NET INCOME OF TWO HUNDRED FIFTY FIVE MILLION MARKS ONE HUNDRED FORTY SEVEN POINT ONE MILLION DOLLARS A B. M. W. BOARD MEMBER SAID THAT RESULT WOULD STILL BE LOWER THAN NINETEEN NINETY TWO EARNINGS HOWEVER WHICH TOTALED SEVEN HUNDRED TWENTY SIX MILLION MARKS FULL NINETEEN NINETY THREE RESULTS ARE DUE TO BE RELEASED IN MARCH COMMENTING ON B. M. W.'S BIG ACQUISITION ANNOUNCED EARLIER THIS WEEK THE BOARD MEMBER HORST TELTSCHIK SAID B. M. W.'S EIGHTY PERCENT PURCHASE OF BRITISH AUTO MAKER ROVER GROUP LIMITED WILL HELP B. M. W. SAVE RESEARCH AND DEVELOPMENT COSTS AND STRENGTHEN ITS POSITION IN WORLD MARKETS MR. TELTSCHIK ALSO SAID THAT WITH ROVER B. M. W. HAS IMMEDIATE ACCESS TO TECHNOLOGY FOR FRONT WHEEL AND FOUR WHEEL DRIVE LEADING TO RESEARCH AND DEVELOPMENT COST SAVINGS IN THOSE SPECIFIC AREAS UNDER A PRE EXISTING AGREEMENT B. M. W. ALREADY HAD PLANNED TO SUPPLY A LINE OF ROVER VEHICLES WITH A DIESEL MOTOR MR. TELTSCHIK SAID LAST FRIDAY THE COMMERCE DEPARTMENT PRONOUNCED THE NATION'S ECONOMY STRONGER THAN AT ANY POINT SINCE LATE NINETEEN EIGHTY SEVEN NO ONE HAD TO TELL THE SOUTHEAST QUOTE THINGS ARE SO GOOD RIGHT NOW THAT I DON'T EVEN WANT TO TALK ABOUT IT QUOTE SAYS JIM DIFFEE PRESIDENT OF BROOKWOOD FURNITURE COMPANY IN PONTOTOC MISSISSIPPI FOR THE PAST EIGHTEEN MONTHS HE SAYS BROOKWOOD WHICH MAKES SOFAS LOVE SEATS AND CHAIRS FOR HOME FURNITURE COMPANIES HAS BEEN GOING LIKE GANGBUSTERS SALES IN NINETEEN NINETY THREE WERE UP THIRTY PERCENT FROM NINETEEN NINETY TWO AND NET INCOME TRIPLED THE NEWS IS THE SAME THROUGH MUCH OF THE REGION THANKS LARGELY TO A UNIQUE MIX OF MANUFACTURERS THAT ARE ABLE TO TAKE ADVANTAGE OF THE NATIONWIDE HOUSING BOOM THE SOUTHEAST'S ECONOMY HAS BEEN MOVING SMARTLY AHEAD THAT MIX OF HOUSEHOLD TEXTILES APPLIANCES FURNITURE AND CONSTRUCTION PRODUCTS HELPED KEEP MANUFACTURING EMPLOYMENT RATES IN THE REGION LEVEL THROUGH THE FIRST NINE MONTHS OF NINETEEN NINETY THREE BY CONTRAST MANUFACTURING EMPLOYMENT NATIONWIDE FELL ONE POINT SIX PERCENT THROUGH THE THIRD QUARTER SUCH INDUSTRIES OF COURSE CAN BE FOUND THROUGHOUT THE COUNTRY BUT THE CONCENTRATION OF THOSE MANUFACTURERS IN THE SOUTHEAST ACCORDING TO THE RECENT REGIONAL UPDATE BY THE FEDERAL RESERVE BANK OF ATLANTA MEANS THAT BROOKWOOD FURNITURE AND ITS NEIGHBORS SHOULD CONTINUE TO OUTPACE THE REST OF THE COUNTRY AS NATIONAL HOUSING ACTIVITY BOUNCES BACK LAST YEAR FOR INSTANCE BROOKWOOD ADDED SIXTY EIGHT EMPLOYEES TO ITS ROLLS BOOSTING THE NUMBER OF WORKERS SEVENTEEN PERCENT TO FOUR HUNDRED SIXTY FOUR THE COMPANY WOULD LIKE TO ADD MORE THIS YEAR SAYS MR. DIFFEE BUT WITH UNEMPLOYMENT IN THE AREA OF ONLY FOUR PERCENT BROOKWOOD IS FACING A RARE LABOR SHORTAGE THE CARPET MARKET IS UP FIVE PERCENT REPORTS JOHN SWIFT CHIEF FINANCIAL OFFICER OF MOHAWK INDUSTRIES INCORPORATED AN ATLANTA MANUFACTURER OF COMMERCIAL AND RESIDENTIAL CARPETS THAT'S NOT A BAD INCREASE SINCE WE'VE BEEN AT BETWEEN TWO PERCENT AND THREE PERCENT ANNUAL GROWTH FOR A WHILE HE SAYS MR. SWIFT SEES THE INCREASE IN RESIDENTIAL CARPET SALES WHICH ACCOUNT FOR A BIGGER PORTION OF MOHAWK'S SALES INCREASE AS DIRECTLY TIED TO THE HOUSING MARKET THE SOUTHEAST'S ABOVE AVERAGE ECONOMIC PERFORMANCE IS BECOMING SOMETHING OF A HABIT THE REGION HAS CONSISTENTLY ATTRACTED NEW BUSINESSES AND CREATED JOBS AT A PACE WELL AHEAD OF THE NATION SAYS MARK VITNER AN ECONOMIST WITH FIRST UNION BANK IN CHARLOTTE N. C. THAT GROWING JOB DISPARITY HAS BROUGHT JOB SEEKERS TO THE AREA WHICH IN TURN HAS GIVEN THE HOUSING MARKET A LIFT SIX SOUTHEAST STATES RANK AMONG THE TOP TEN IN TERMS OF ATTRACTING NEW RESIDENTS FROM OTHER STATES MR. VITNER SAID CORRESPONDINGLY BUILDING PERMITS FOR SINGLE FAMILY HOMES WERE UP NEARLY TWELVE PERCENT THROUGHOUT THE REGION IN NINETEEN NINETY THREE AND SHOULD RISE AN ADDITIONAL SEVEN PERCENT IN NINETEEN NINETY FOUR HE SAYS ALSO SETTING THE SOUTHEASTERN ECONOMY APART FROM THE NATION HAS BEEN THE NORMALITY OF THE REGION'S ECONOMIC RECOVERY ECONOMISTS SAY WHILE THE NATION'S GROSS DOMESTIC PRODUCT SHOT UP AT AN ANNUAL RATE OF FIVE POINT NINE PERCENT IN THE NINETEEN NINETY THREE FOURTH QUARTER ACCORDING TO FIGURES RELEASED LAST WEEK BY THE COMMERCE DEPARTMENT THE RECOVERY HAS BEEN LACKING IN JOB GROWTH BUT NOT FOR THE SOUTHEAST FOR ONE THING CORPORATE LAYOFFS HAVEN'T BEEN AS BIG A FACTOR IN THE REGION AS IN THE REST OF THE COUNTRY WHEN YOU TAKE A LOOK AND SAY WHAT ARE THE FACTORS MAKING THE ECONOMY SHRINK NATIONALLY YOU'LL SEE WE DON'T REALLY HAVE THOSE INDUSTRIES SAYS DONALD RATAJCZAK DIRECTOR OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY IN ATLANTA QUOTE IT'S THE MILITARY FOR INSTANCE WELL WE'VE GOT MILITARY IN THE SOUTHEAST BUT WE DON'T MAKE THE EQUIPMENT FOR THEM SO WE DON'T HAVE THE BIG DRAIN A CALIFORNIA OR A CONNECTICUT IS TAKING FURTHERMORE A GREAT DEAL OF REGIONAL PRIDE IN THE SOUTH MANIFESTING ITSELF IN THE BOOSTERISH PRO BUSINESS ATTITUDE PARTICULARLY PREVALENT IN PLACES LIKE ATLANTA AND CHARLOTTE HAS HELPED THE REGION RECRUIT AND RETAIN BUSINESSES YOU LOOK AT AREAS IN THE NORTHEAST WITH A CHRONIC REVENUE SHORTFALL WELL THEY'RE ALWAYS LOOKING FOR BUSINESSES TO PICK UP TAXES MR. VITNER SAID THAT'S CHASING A LOT OF BUSINESSES OUT OF THEIR STATES STILL THE SOUTHEAST HAS ITS PROBLEMS WHILE METROPOLITAN AREAS LIKE ATLANTA CHARLOTTE NASHVILLE TENNESSEE AND JACKSONVILLE FLORIDA ARE SEEING HUGE POPULATION GROWTH RURAL AREAS AREN'T SHARING IN THAT GROWTH THESE AREAS ECONOMISTS SAY WHICH HAVE LONG DEPENDED LARGELY ON A SINGLE COMPANY FOR EMPLOYMENT ARE FINDING THAT SHIFTS TO HIGH TECHNOLOGY MACHINERY ARE MAKING HOMETOWN COMPANIES LESS LABOR INTENSIVE IN ADDITION THE REGION'S HEAVY RELIANCE ON MANUFACTURING MEANS THAT JOB LOSSES IN THE APPAREL INDUSTRY NATIONWIDE ARE FELT PARTICULARLY IN THE SOUTH EVEN THOSE LOSSES HOWEVER SHOULD BE OFFSET BY EMPLOYMENT GAINS IN FACTORIES THAT MAKE CONSTRUCTION MATERIALS AND HOME FURNISHINGS THE FEDERAL RESERVE SAYS THE GOOD TIMES WON'T LAST FOREVER THOUGH CONSTRUCTION ISN'T GOING TO DO BETTER THAN OTHER INDUSTRY FOREVER SAYS TOM CUNNINGHAM AN ECONOMIST WITH THE FEDERAL RESERVE THEN THAT SINGLE IMPETUS FOR RAPID GROWTH WILL FADE WHAT'S MORE AS THE SOUTHEAST GROWS IN POPULATION IT WILL BEGIN TO LOOK MORE LIKE THE REST OF THE COUNTRY QUOTE IF YOU'RE A SMALL AREA IT'S EASY TO BE DIFFERENT QUOTE MR. CUNNINGHAM SAYS ONCE YOU GET BIG IT'S HARDER LONG CONSIDERED THE POOR COUSINS OF THEIR MORE ESTABLISHED FRENCH NEIGHBORS ITALIAN WINES CAN NONETHELESS YIELD A COMPARABLE RETURN ON INVESTMENT EXPERTS SAY QUOTE A HIGH QUALITY ITALIAN WINE COSTS ABOUT ONE THIRD LESS THAN A FRENCH ONE AND CAN APPRECIATE IN VALUE JUST AS MUCH IN THE AGING QUOTE SAYS LUIGI COTTI OWNER OF ENOTECA COTTI A MILAN WINE SHOP ITALIAN WINE WASN'T ALWAYS CONSIDERED SUCH A COLLECTOR'S ITEM AND A HIGH QUALITY FRENCH WINE STILL IS USUALLY MORE EXPENSIVE THAN A COMPARABLE ITALIAN ONE WINE DEALERS SAY THAT WHILE AMERICANS HAVE APPRECIATED THE INVESTMENT VALUE OF A GOOD BARBARESCO FOR AT LEAST A DECADE EUROPEANS AND EVEN ITALIANS THEMSELVES HAVE CAUGHT ON ONLY RECENTLY WHILE FINE VINTAGES ALWAYS HAVE BEEN APPRECIATED IN ITALY AND CAN COME WITH A HEFTY PRICE TAG WINE TYPICALLY IS CONSIDERED A BEVERAGE NOT A JEWEL IN ITALY TABLE WINE CAN OFTEN BE HAD FOR LESS THAN THE PRICE OF GASOLINE UNTIL A FEW YEARS AGO WINE WAS NOT SINGLED OUT AS AN INVESTMENT IN ITALY ITALIANS ONLY CHANGED THEIR MINDS TOWARD THE PRODUCT IN THE EIGHTIES SAYS LUISA RONCHI OWNER OF A MILAN WINE SHOP CALLED ENOTECA RONCHI FOUNDED IN ONE THOUSAND EIGHT HUNDRED SIXTY FIVE THE ITALIAN WINE MARKET ISN'T AS DEVELOPED AS THE FRENCH BECAUSE OF A LACK OF TRADITION AND ORGANIZATION MS. RONCHI SAYS AS A RESULT DEALERS AND WINE STORE OWNERS OFTEN GIVE ONLY VAGUE INDICATIONS OF PRICES AND NO OFFICIAL PRICE LIST EXISTS IN ITALY NEVERTHELESS WE HAVE MANY GOOD WINES THAT CAN APPRECIATE IN VALUE IN THE FUTURE SHE SAYS WINES THAT APPRECIATE IN VALUE MOST ARE THE NEWER TYPES CREATED AFTER WORLD WAR TWO DEALERS SAY PARTICULARLY IN TUSCANY FOR EXAMPLE LUDOVICO ANTINORI'S NINETEEN NINETY SASSICAIA WHICH COULD BE PURCHASED IN THE NINETEEN EIGHTIES FOR AROUND FIFTEEN DOLLARS AT THE CURRENT EXCHANGE RATE NOW IS VALUED AT AROUND EIGHTY NINE DOLLARS OTHER EXAMPLES ARE NINETEEN EIGHTY NINE ORNELLAIA AND SOLAIA BOTH TUSCAN REDS WHICH NOW COST ABOUT THIRTY TWO DOLLARS AND FIFTY CENTS AND ARE EXPECTED TO REACH PRICES OF FROM FIFTY NINE DOLLARS TO SEVENTY ONE DOLLARS IN ABOUT FIVE YEARS OTHER NEW WINES TO KEEP AN EYE ON INCLUDE TIGNANELLO CIGNALE PERGOLE TORTE SAN MARCO AND CASTELLO DI AMA ALL FROM THE CHIANTI REGION THEY ALL COST AROUND TWENTY DOLLARS AND FIFTY CENTS TO TWENTY SIX DOLLARS AND FIFTY CENTS CURRENTLY AND ARE EXPECTED TO DOUBLE IN VALUE OVER THE NEXT FIVE YEARS EXPERTS SAY THESE WINES SHOULD HAVE GOOD VALUE APPRECIATION BECAUSE THEY ARE NORMALLY CONSIDERED TOP TABLE WINES GOOD FOR RESTAURANTS OR GIFTS SAYS MR. COTTI EXPERTS ATTRIBUTE THEIR HIGH QUALITY IN PART TO USE OF MODERN PRODUCTION METHODS QUOTE SASSICAIA TIGNANELLO AND ORNELLAIA ARE NOT EVERY DAY WINES BECAUSE OF THEIR HIGH QUALITY QUOTE SAYS SERENA SUTCLIFFE HEAD OF SOTHEBY'S WINE DEPARTMENT IN LONDON WHICH AUCTIONS OFF SMALL ITALIAN WINE COLLECTIONS SEVERAL TIMES A YEAR ASIDE FROM THE NEW WINES EXPERTS SAY OTHER GOOD INVESTMENTS ARE CLASSIC TYPES FROM THE NORTH PIEDMONT AND THE VENETO REGION AND THE CENTER TUSCANY THIS IS BECAUSE OF TRADITION AND BECAUSE CENTRAL AND NORTHERN PRODUCERS HAVE INTRODUCED NEW TECHNOLOGIES MS. RONCHI SAYS SOME OF THE HIGHEST PRICES HAVE BEEN FETCHED BY BAROLO AND BARBARESCO FROM ASTI IN PIEDMONT AND AMARONE RECIOTO FROM VERONA IN VENETO WHILE BRUNELLO DI MONTALCINO IS A HIGH PROFILE WINE FROM TUSCANY CLASSIC RED WINES ARE CONSIDERED A BETTER INVESTMENT THAN WHITE BECAUSE THEY HAVE A LONGER PERIOD OF AGING AND THE WHITES DON'T APPRECIATE WITH AGE EXPERTS SAY BAROLO AND BARBARESCO TWO CLASSIC RED WINES GRAB THE MOST ATTENTION FROM OENOLOGISTS AND ARE THOSE BEST KNOWN ON THE INTERNATIONAL MARKETS THESE WINES HAVE A GOOD MARKET IN THE U. S. AFFIRMS FAITH WILLINGER A FLORENCE BASED WINE WRITER THEY ARE NORMALLY SOUGHT AFTER BY COLLECTORS AND SPECIALIZED SHOPS MR. COTTI THE WINE SHOP OWNER AGREES THE BEST INVESTMENTS IN CLASSIC WINES ARE IN BAROLO AND BARBARESCO THEY ALWAYS INCREASE IN VALUE EXAMPLES OF GOOD VINTAGES TO STOCK UP ON ARE NINETEEN EIGHTY EIGHT NINETEEN EIGHTY NINE AND NINETEEN NINETY BAROLO OR NINETEEN EIGHTY FIVE NINETEEN EIGHTY EIGHT NINETEEN EIGHTY NINE AND NINETEEN NINETY BARBARESCO DEALERS SAY IN GENERAL ITALIAN CLASSIC WINES APPRECIATE IN QUALITY AND VALUE UNTIL THEY REACH ABOUT TWENTY TO TWENTY FIVE YEARS THEN THE PRICE AS WELL AS THE QUALITY STABILIZES IT IS BETTER TO AVOID BAROLOS OR BARBARESCOS BOTTLED IN NINETEEN EIGHTY FOUR NINETEEN EIGHTY SEVEN NINETEEN NINETY TWO AND NINETEEN NINETY THREE EXPERTS SAY AS WELL AS IN NINETEEN SIXTY TWO NINETEEN SIXTY FIVE AND NINETEEN SIXTY NINE ITALY HAS ABOUT ONE HUNDRED SPECIALTY WINE SHOPS AND CUSTOMERS CAN BARGAIN FOR BETTER PRICES ESPECIALLY WHEN BUYING SEVERAL BOTTLES AT ONCE OWNERS EXPLAIN ANOTHER WAY OF ACQUIRING FINE ITALIAN WINES IS BY PURCHASING FUTURES THIS MEANS BUYING WINE ABOUT A YEAR AND A HALF BEFORE IT REACHES THE SHOP SUCH DEALS BROKERED BY WINE SHOPS THAT ADVISE ON VINTAGE QUALITY CAN SAVE AN INVESTOR AS MUCH AS FIFTY PERCENT BUT NOT ALL PRODUCERS APPRECIATE THIS TYPE OF SALE BECAUSE MANY OF THEM ARE TOO CONSERVATIVE MS. RONCHI SAYS THIS SUNDAY SOTHEBY'S WILL AUCTION OFF NINETEEN SEVENTY SIX NINETEEN EIGHTY AND NINETEEN EIGHTY THREE SASSICAIA NINETEEN EIGHTY BIONDI SANTI BRUNELLO DI MONTALCINO AND NINETEEN SEVENTY NINE AND NINETEEN EIGHTY ONE BARBARESCO GAJA A CLASSIC WINE TWELVE MAGNUMS OR DOUBLE SIZED BOTTLES OF NINETEEN EIGHTY SASSICAIA ARE VALUED AT SIX HUNDRED DOLLARS AT THE CURRENT EXCHANGE RATE BETWEEN THE POUND AND DOLLAR SIX BOTTLES OF BARBARESCO GAJA NINETEEN SEVENTY NINE WILL START BIDDING AT THREE HUNDRED SEVENTY FIVE DOLLARS TWELVE BOTTLES OF NINETEEN EIGHTY BIONDI SANTI BRUNELLO DI MONTALCINO ALSO WILL START AT THREE HUNDRED SEVENTY FIVE DOLLARS REALLY OLD WINES MEANWHILE ARE MORE FUN THAN PROFITABLE EXPERTS SAY BOTTLES DATED NINETEEN HUNDRED CAN RUN FOR THREE HUNDRED FIFTY FIVE DOLLARS WHILE A FRENCH ONE OF A COMPARABLE AGE WILL COST ABOUT FOUR HUNDRED SEVENTY FOUR DOLLARS BUT THEY WON'T GO MUCH HIGHER IN ITALY THESE ARE SOMETIMES GIVEN FOR A WEDDING OR BIRTHDAY SOMETIMES A BUYER WILL SELECT A WINE DATING FROM THE YEAR HIS FRIEND WAS BORN AS A SPECIAL GIFT THIS FASHION COMPANY SAID IT NAMED RONALD L. FRASCH SENIOR VICE PRESIDENT IN CHARGE OF WOMEN'S APPAREL FOR THE NEIMAN MARCUS UNIT OF NEIMAN MARCUS GROUP INCORPORATED TO BE THE PRESIDENT OF ITS ESCADA U. S. A. DIVISION AT NEIMAN MR. FRASCH FORTY FIVE YEARS OLD WORKED CLOSELY WITH ESCADA WHICH HAS BEEN ONE OF NEIMAN'S TOP SELLING DESIGNER COLLECTIONS BASED IN NEW YORK ESCADA U. S. A. IS A WHOLESALER AND RETAILER OF WOMEN'S DESIGNER APPAREL WITH NINETEEN NINETY THREE SALES OF ABOUT ONE HUNDRED TWENTY MILLION DOLLARS MR. FRASCH REPLACES PETER LANIAK SIXTY THREE WHO SERVED AS ESCADA U. S. A.'S PRESIDENT SINCE NINETEEN EIGHTY SIX AND HAD PREVIOUSLY ANNOUNCED HIS PLANS TO RETIRE ESCADA SAID THAT MR. LANIAK HAS BEEN ELECTED VICE CHAIRMAN OF ITS U. S. BOARD SHEARSON ONE OF THE BIGGEST NAMES ON WALL STREET FOR NEARLY A CENTURY MAY SOON BITE THE DUST A PLANNING COMMITTEE OF TRAVELERS INCORPORATED PARENT OF BROKERAGE GIANT SMITH BARNEY SHEARSON INCORPORATED RECENTLY VOTED TO CONSIDER DROPPING THE SHEARSON NAME ON MAY FIRST PEOPLE FAMILIAR WITH THE MATTER SAID THE TRAVELERS UNIT WAS FORMED IN JULY BY COMBINING SHEARSON'S BROKERAGE OPERATIONS WITH SMITH BARNEY HARRIS UPHAM AND COMPANY IT'S LIKELY THE SHEARSON NAME WILL INDEED BE SHELVED THE PEOPLE SAID THE PROBLEM WITH SHEARSON IT SEEMS IT THAT IT DOESN'T HAVE MUCH CACHE ANYMORE BEFORE ITS MERGER WITH SMITH BARNEY SHEARSON HAD BEEN MIRED IN RED INK FOR SEVERAL YEARS INCLUDING A NINETEEN NINETY LOSS OF NINE HUNDRED SIXTY SIX MILLION DOLLARS A RECORD FOR THE BROKERAGE BUSINESS QUOTE WITH ALL THE BAGGAGE PEOPLE WILL BE JUST AS HAPPY THAT IT'S GONE QUOTE SAYS THEODORE A. KREBSBACH SHEARSON'S FORMER LITIGATION CHIEF WHO IS NOW WITH KITTAY GOLD AND KREBSBACH A NEW YORK LAW FIRM BUT I HAVE A TOUGH TIME BELIEVING THAT THE SMITH BARNEY NAME IS MUCH BETTER THE LIKELIHOOD OF DROPPING SHEARSON SURPRISED SOME BROKERAGE EXECUTIVES THAT'S BECAUSE TRAVELERS CHAIRMAN SANFORD I. WEILL WHO MADE HIS MARK ON WALL STREET BY COBBLING TOGETHER SHEARSON IN THE NINETEEN SEVENTIES AND NINETEEN EIGHTIES HAS ALWAYS KEPT THE SHEARSON SIGNATURE THROUGHOUT A SERIES OF MERGERS AND ACQUISITIONS OBVIOUSLY HE LOVES SHEARSON BUT HE'S WILLING TO GO THE WAY OF THE COMMITTEE A PERSON FAMILIAR WITH THE MATTER SAID MR. WEILL WAS OUT OF THE COUNTRY AND UNAVAILABLE FOR COMMENT THE SHEARSON TALKS ARE PART OF A BROADER REVIEW OF THE TRAVELERS NAME AND ITS RELATIONSHIP WITH VARIOUS UNITS ONE MATTER UNDER REVIEW FOR INSTANCE IS NOT USING THE TRAVELERS NAME IN CONNECTION WITH ITS BROKERAGE UNIT BECAUSE OF THE INSURANCE CONNOTATION THAT THE TRAVELERS NAME AND ITS FAMOUS RED UMBRELLA LOGO BRINGS SHEARSON HAS BEEN AMONG WALL STREET'S LONGEST RUNNING NAMES SINCE IT WAS FOUNDED IN NINETEEN OH TWO AS SHEARSON HAMMILL AND COMPANY BY ED SHEARSON A CANADIAN BROKERAGE EXECUTIVE SHEARSON HAMMILL'S NAME STAYED THE SAME FOR SEVENTY TWO YEARS BEFORE HAYDEN STONE BOUGHT IT IN NINETEEN SEVENTY FOUR AND CALLED IT SHEARSON HAYDEN STONE SINCE THEN THE FIRM HAS BEEN CALLED SHEARSON LOEB RHOADES NINETEEN SEVENTY NINE SHEARSON SLASH AMERICAN EXPRESS NINETEEN EIGHTY ONE SHEARSON LEHMAN SLASH AMERICAN EXPRESS NINETEEN EIGHTY FOUR SHEARSON LEHMAN BROTHERS NINETEEN EIGHTY FIVE AND SHEARSON LEHMAN HUTTON NINETEEN EIGHTY EIGHT IT REVERTED TO THE NAME SHEARSON LEHMAN BROTHERS IN NINETEEN NINETY BEFORE LAST YEAR'S CHANGE TO SMITH BARNEY SHEARSON WHEN FOR THE FIRST TIME THE SHEARSON NAME DIDN'T GET TOP BILLING THERE'S STILL A CHANCE THAT THE SHEARSON NAME WILL REMAIN FOR SELECTED DIVISIONS OF SMITH BARNEY SOME SMITH BARNEY MUTUAL FUNDS FOR INSTANCE MAY RETAIN THE SHEARSON MONIKER THE PEOPLE SAID AND SHEARSON MAY CARRY MORE WEIGHT IN INTERNATIONAL AND INVESTMENT BANKING CIRCLES A PERSON FAMILIAR WITH THE MATTER SAID IRRADIATING BEEF MAY HELP SAVE LIVES BUT THE MEAT INDUSTRY IS STILL WAITING FOR THE GOVERNMENT'S GREEN LIGHT AGRICULTURE DEPARTMENT SCIENTISTS RECENTLY REPORTED THAT SMALL DOSES OF IRRADIATION COULD WIPE OUT QUOTE NEARLY ONE HUNDRED PERCENT QUOTE OF THE E. COLI BACTERIAL STRAIN IN BEEF THESE BACTERIA WERE BLAMED IN THREE WEST COAST TAINTED HAMBURGER FATALITIES MORE THAN A YEAR AGO AND IN SEVERAL SUBSEQUENT CASES MOST INVOLVING CHILDREN IRRADIATION HAS ALREADY BEEN SHOWN TO STERILIZE MEAT AND PRODUCE AGAINST PRACTICALLY ALL BACTERIA THAT CAUSE SPOILAGE WHILE AN AIDE SAYS AGRICULTURE SECRETARY MIKE ESPY IS CLOSE TO ANNOUNCING HIS POSITION ON THE ISSUE OTHERS SUSPECT THAT POLITICS IS HOLDING HIM BACK WITHIN THE CLINTON ADMINISTRATION THERE IS CONCERN THAT THE PUBLIC MIGHT LINK BEEF IRRADIATION WITH THE GOVERNMENT RADIATION EXPERIMENTS OF THE NINETEEN FIFTIES SOME PROPONENTS HAVE EVEN SUGGESTED GETTING RID OF THE NAME IRRADIATION CALLING THE PROCESS IONIZED PASTEURIZATION INSTEAD CRITICISM OF IRRADIATION HAS COME PRIMARILY FROM A SMALL BUT VOCAL GROUP CALLED FOOD AND WATER INCORPORATED WHICH CONTENDS THAT DESPITE YEARS OF RESEARCH NOT ENOUGH IS KNOWN ABOUT THE STRAY MOLECULES CREATED DURING IRRADIATION CRITICS ALSO WORRY THAT THE PROCESS MAY REDUCE NUTRIENT LEVELS INDEED MR. ESPY'S PRESS SECRETARY STEVE KINSELLA RECENTLY SAID THAT BEFORE MR. ESPY WOULD RECOMMEND IRRADIATION AS PART OF STEPPED UP SAFETY MEASURES FOR BEEF THE PROCESS WOULD HAVE TO BE PROVEN IT IS SAFE AND ACCEPTABLE BY CONSUMERS THE MOST COMMON METHOD OF IRRADIATING FOOD IS WITH BRIEF BURSTS OF GAMMA RAYS FROM THE RADIOACTIVE ISOTOPE COBALT SIXTY THIS PROCEDURE WHICH TAKES PLACE IN A ROOM WITH CONCRETE WALLS IS USED TO TREAT PRODUCE AND SOME POULTRY IN FLORIDA IN THE COUNTRY'S ONLY COMMERCIAL FOOD IRRADIATION PLANT THE METHOD HAS LONG BEEN USED IN THE U. S. TO STERILIZE MEDICAL DEVICES AND THE FOOD THAT ACCOMPANIES ASTRONAUTS INTO SPACE AND HAS BEEN USED FOR YEARS IN EUROPE AND THE MIDDLE EAST TO PREVENT SPOILAGE IN FACT AT LEAST SOME OF THE SHRIMP IMPORTED INTO THE U. S. HAS BEEN IRRADIATED IN EUROPE A PROPOSAL FROM THE MEAT INDUSTRY URGING MR. ESPY'S SUPPORT HAS BEEN AT THE AGRICULTURE DEPARTMENT FOR WEEKS BUT HE HASN'T HELD A FULL DEPARTMENT LEVEL MEETING TO DISCUSS IT PEOPLE FAMILIAR WITH THE MATTER SAY MR. ESPY DECLINED TO BE INTERVIEWED SOME PROPONENTS SUSPECT THAT THE DECISION ON BEEF IS HUNG UP ON PHILOSOPHICAL DISAGREEMENTS WITHIN THE DEPARTMENT THEY NOTE THAT ELLEN HAAS NOW AN ASSISTANT SECRETARY IN CHARGE OF FOOD AND CONSUMER SERVICES ACTIVELY OPPOSED IRRADIATION WHILE SHE WAS EXECUTIVE DIRECTOR OF PUBLIC VOICE FOR FOOD AND HEALTH POLICY THAT CONSUMER ADVOCACY GROUP ONCE SUGGESTED THAT IRRADIATED FOODS BE MARKED WITH A SKULL AND CROSSBONES A SPOKESMAN FOR MS. HAAS SAYS SHE HASN'T DISCUSSED THE TOPIC WITH MR. ESPY MR. ESPY PASSED UP A CHANCE TO ENDORSE IRRADIATION LAST WEEK WHEN HE ATTENDED A SEMINAR ON FOOD SAFETY IN NEW YORK CITY SPONSORED BY THE PARENTS OF A GIRL WHO HAD DIED OF KIDNEY FAILURE AFTER EATING FOOD POISONED BY THE BACTERIA KNOWN AS E. COLI ZERO ONE FIVE SEVEN H. SEVEN IN HIS REMARKS MR. ESPY SPOKE ABOUT IMPROVING THE CURRENT PACKING PLANT INSPECTION SYSTEM BUT DIDN'T MENTION IRRADIATION PRESSURE FOR HIM TO ENDORSE IS GROWING SENATOR CHARLES GRASSLEY R. IOWA RECENTLY URGED MR. ESPY TO RECOMMEND IRRADIATING BEEF CALLING IT THE MOST PROMISING PATH WE KNOW TO HALT AND EVENTUALLY ELIMINATE THE PROLIFERATION OF PATHOGENS IN OUR FOOD SUPPLY OTHERS IN CONGRESS ALSO WANT ACTION OUR POSITION IS LET'S GO SAYS AN AIDE TO SENATOR SLADE GORTON R. WASHINGTON THE AMERICAN MEDICAL ASSOCIATION'S COUNCIL ON SCIENTIFIC AFFAIRS HAS RECOMMENDED THAT IRRADIATION BE ADDED TO WHAT IT CALLED THE QUOTE ARMAMENTARIUM OF TECHNIQUES QUOTE TO ENSURE FOOD SAFETY AND IN MAINE STATE EPIDEMIOLOGIST KATHLEEN GENSHEIMER HOPES THAT STATE'S BAN ON IRRADIATED FOOD WILL BE REPEALED SOON FOOD IRRADIATION IS AN EXAMPLE OF TECHNOLOGY NOT BEING PUT TO GOOD USE SHE SAYS TWENTY THREE CASES OF E. COLI INFECTION WERE REPORTED IN MAINE IN THE SECOND HALF OF NINETEEN NINETY THREE WHILE E. COLI CASES AREN'T ROUTINELY REPORTED NATIONALLY DENISE KOO AN EPIDEMIOLOGIST AT THE U. S. CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA BELIEVES THE E. COLI ZERO ONE FIVE SEVEN H. SEVEN STRAIN IS INCREASING IN INCIDENCE CARRIERS OF THE PATHOGEN ARE SOMETIMES DIFFICULT TO PINPOINT BUT SAYS DOCTOR KOO OFTEN HEALTH DEPARTMENTS CAN TRACE IT BACK TO A BEEF SOURCE JAMES MARSDEN VICE PRESIDENT OF SCIENTIFIC AND TECHNICAL AFFAIRS AT THE AMERICAN MEAT INSTITUTE A TRADE GROUP WHOSE MEMBERSHIP INCLUDES BEEFPACKERS SAYS IF THE U. S. D. A. IS GOING TO SUCCESSFULLY ADDRESS PATHOGENS IN MEAT AND POULTRY THIS IS ONE TECHNOLOGY THEY WILL HAVE TO STRONGLY CONSIDER AT THE VERY MINIMUM YOU NEED TO GIVE CONSUMERS A CHOICE THE GOVERNMENT APPROVED IRRADIATING POULTRY IN NINETEEN NINETY TWO BUT SO FAR NO NATIONALBRAND PROCESSOR HAS SOLD IRRADIATED POULTRY IN PART BECAUSE OF WORRIES ABOUT POTENTIAL CONSUMER BACKLASH AND THE QUESTIONS THE PROCESS MIGHT RAISE ABOUT NONIRRADIATED POULTRY BECAUSE IRRADIATION IS CONSIDERED A FOOD ADDITIVE ALTHOUGH IT LEAVES NO TRACES AND IS UNDETECTABLE THE F. D. A. BY LAW MUST APPROVE THE TECHNIQUE FOR BEEF AS IT HAS FOR POULTRY BUT THE F. D. A. CAN'T ACT UNTIL THE U. S. D. A. WHICH OVERSEES THE NATION'S MEAT SUPPLY FORMALLY RECOMMENDS THAT IT DO SO AGRICULTURE DEPARTMENT AIDES ALSO SUGGEST THAT MR. ESPY IS SEEKING LESS VOLATILE ALTERNATIVES TO IRRADIATION QUOTE OUR SCIENTISTS HAVE LOOKED AT TECHNOLOGIES ALREADY USED IN THE PHARMACEUTICALS AND CHEESE MANUFACTURING INDUSTRIES QUOTE AS WELL AS POSSIBLE APPLICATIONS OF CHEMICAL WARFARE DETECTION SYSTEMS USED IN DESERT STORM ONE AIDE SAID WHILE ITS LEADERSHIP WEIGHS THE MATTER U. S. D. A. RESEARCHERS ARE PRESSING FORWARD ON SEVERAL OTHER FRONTS INCLUDING A SEARCH FOR AN E. COLI VACCINE SCIENTISTS AT A GOVERNMENT LABORATORY IN BELTSVILLE MARYLAND HAVE INSERTED INTO PIGS SHEEP AND MICE A MOUSE GENE THAT PRODUCES AN ANTIBODY AGAINST E. COLI WHAT IT IS SHORT BURSTS OF GAMMA RAYS FROM THE RADIOACTIVE ISOTOPES COBALT SIXTY OR CESIUM ONE HUNDRED THIRTY SEVEN OR FROM ELECTRON BEAMS WHAT IT DOES REMOVES ALMOST ALL TRACES OF E. COLI IN BEEF SALMONELLA IN POULTRY CHOLERA IN FISH TRICHINOSIS IN PORK AND BACTERIA THAT SPOIL PRODUCE PROPONENTS OF BEEF IRRADIATION THE NATIONAL FOOD PROCESSORS ASSOCIATION THE AMERICAN MEDICAL ASSOCIATION THE WORLD HEALTH ORGANIZATION AND THE AMERICAN MEAT INSTITUTE ALL SAY BEEF IRRADIATION WILL HELP REDUCE DEATHS FROM E. COLI CRITICS OF BEEF IRRADIATION FOOD AND WATER INCORPORATED THEY SAY NUTRIENTS ARE LOST IN THE PROCESS AND NOT ENOUGH IS KNOWN ABOUT THE STRAY MOLECULES THAT RESULT FROM IT PROGRAM TRADING IN THE WEEK ENDED JANUARY TWENTY EIGHTH ACCOUNTED FOR SEVEN PERCENT OR AN AVERAGE TWENTY TWO POINT THREE MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL EIGHT POINT ONE 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 FIFTEEN DIFFERENT STOCKS WITH A TOTAL VALUE OF ONE MILLION DOLLARS OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD FORTY POINT ONE PERCENT INVOLVED STOCK INDEX ARBITRAGE UP FROM THIRTY NINE PERCENT THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCK INDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME FIFTY EIGHT POINT EIGHT PERCENT OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE THIRTY EIGHT POINT EIGHT PERCENT WAS FOR THEIR CUSTOMERS AN ADDITIONAL TWO POINT FOUR PERCENT WAS DESIGNATED AS CUSTOMER FACILITATION IN WHICH FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOST ACTIVE FIRMS MORGAN STANLEY U. B. S. SECURITIES FIRST BOSTON COOPER NEFF AND SUSQUEHANNA EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS PROGRAM TRADING STATISTICS THAT RAN IN FRIDAY'S EDITION WERE FOR THE WEEK ENDED JANUARY TWENTY EIGHTH THE TABLE WAS LABELED INCORRECTLY FOR THE WEEK ENDED FEBRUARY THIRD IN YOUR JANUARY TWENTIETH MONEY MATTERS QUOTE SAVVY FUND INVESTORS CAN BE A BANE TO SOME BROKERS QUOTE JANUARY TWENTIETH YOU QUOTED TWO SENTENCES FROM AN ARTICLE OF MINE QUOTE THE PERNICIOUS FICTION OF TRACK RECORD QUOTE IN INVESTMENT ADVISOR MAGAZINE YOU USED THE QUOTES OUT OF CONTEXT YOU IMPLY THAT I ENCOURAGE BROKERS TO TRY TO DIVERT INVESTORS' ATTENTION FROM MUTUAL FUND PERFORMANCE TO THE POTENTIAL DETRIMENT OF INVESTORS THE WHOLE POINT OF MY ARTICLE WAS THAT MUTUAL FUND PERFORMANCE NOW MORE THAN EVER IS NOT THE BOTTOM LINE AND THAT INVESTORS NEED AN INFORMED BROKER TO HELP THEM UNDERSTAND THE RISK THAT A FUND'S PERFORMANCE MAY NOT BE REPEATABLE INVESTING PRIMARILY ON THE BASIS OF PAST PERFORMANCE I ARGUED IGNORES THE CYCLICAL NATURE OF MARKETS IT WON'T MATTER FOR INSTANCE WHICH GOVERNMENT BOND FUND ONE CHOOSES IF ONE EXPECTS THAT GOVERNMENT BOND FUNDS WILL RETURN OVER THE NEXT DECADE WHAT THEY DID OVER THE LAST WHICH MANY OF TODAY'S FIRST TIME FUND INVESTORS CLEARLY DO IF BIG CAP STOCK FUNDS HAVE THE BEST RECORD AT THE MOMENT AND THE INVESTOR PICKS ONE ON THE BASIS OF PERFORMANCE HE'LL MISS THE FACT THAT CYCLICALLY BIG CAP MAY NOW UNDERPERFORM SMALL CAP THE MORE ONE MISTAKENLY ASSUMES THAT PERFORMANCE IS THE BOTTOM LINE THE MORE LIKELY ONE IS TO DRIVE DOWN THE ROAD LOOKING ONLY IN THE REARVIEW MIRROR U. S. SALES OF CARS AND LIGHT TRUCKS CONTINUED TO BOOM IN JANUARY RISING THIRTEEN POINT SEVEN PERCENT FROM A YEAR EARLIER COMING IN THE FACE OF HIGHER VEHICLE PRICES AND DESPITE THE DISRUPTIONS OF UNUSUALLY COLD WEATHER AND THE CALIFORNIA EARTHQUAKE THE RISE IN CAR AND TRUCK SALES TO ONE MILLION TWENTY TWO THOUSAND FIVE HUNDRED FORTY THREE VEHICLES SEEMED TO UNDERSCORE THE STRENGTH OF THE ECONOMIC RECOVERY THE AUTO INDUSTRY IS BANKING ON THE UPTREND TO CONTINUE THROUGH THIS YEAR AT LEAST ON A SEASONALLY ADJUSTED BASIS THE JANUARY RESULTS WERE EQUIVALENT TO ABOUT FIFTEEN MILLION VEHICLE SALES A YEAR INCLUDING BOTH IMPORTS AND NORTH AMERICAN BUILT VEHICLES THAT COMPARES WITH A YEAR EARLIER SEASONALLY ADJUSTED ANNUAL SALES RATE OF ABOUT THIRTEEN POINT FIVE MILLION THE JANUARY RATE IS IN LINE WITH INDUSTRY FORECASTS FOR THIS YEAR'S SALES IN NINETEEN NINETY THREE U. S. VEHICLE SALES TOTALED THIRTEEN POINT NINE MILLION QUOTE BUSINESS QUOTE DECLARED ROSS ROBERTS THE FORD MOTOR COMPANY VICE PRESIDENT IN CHARGE OF ITS FORD MARKETING DIVISION QUOTE IS GOOD QUOTE NORTH AMERICAN BUILT VEHICLES CONTINUED TO ACCOUNT FOR THE RISING SALES TOTALS IMPORTED CAR AND TRUCK SALES BOTH DECLINED IN JANUARY DELIVERIES OF NEW TRUCKS WHICH INCLUDE THE FAST GROWING MINIVAN AND SPORT UTILITY VEHICLE SEGMENTS SURGED TWENTY FOUR PERCENT IN JANUARY WHILE CAR SALES ROSE SEVEN POINT SEVEN PERCENT THE MARKET SHARE HELD BY DETROIT'S BIG THREE EDGED UP SEVEN TENTHS OF A PERCENTAGE POINT TO SEVENTY FOUR POINT EIGHT PERCENT MOSTLY AT THE EXPENSE OF JAPANESE NAMEPLATES WALL STREET WHICH HAS BEEN BULLISH ON THE AUTO STOCKS FOR SOME TIME RESPONDED BY PUSHING UP BIG THREE PRICES IN ACTIVE TRADING FORD SHARES SPURTED ONE POINT SIX TWO FIVE DOLLARS TO CLOSE AT SIXTY NINE POINT THREE SEVEN FIVE DOLLARS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GENERAL MOTORS CORPORATION WAS UP ONE DOLLAR AND FIFTY CENTS TO CLOSE AT SIXTY THREE DOLLARS AND CHRYSLER CORPORATION GAINED ONE DOLLAR AND TWENTY FIVE CENTS TO CLOSE AT SIXTY TWO DOLLARS AND FIFTY CENTS ONE MAJOR FACTOR IN THE RECENT SALES GROWTH HAS BEEN THE AGGRESSIVE PROMOTION OF SHORT TERM LEASING PARTICULARLY BY FORD SEPARATELY AS EXPECTED FORD YESTERDAY DISCLOSED DETAILS OF ITS NEW USED CAR LEASING PROGRAM WHICH IS TO BEGIN FEBRUARY FIFTEENTH THE PROGRAM FOCUSES ON TWO YEAR OLD FORDS THAT ARE COMING BACK INTO DEALERS' HANDS AT THE END OF TWO YEAR LEASES FORD SAID IT EXPECTS ABOUT ONE HUNDRED THIRTY THOUSAND SUCH VEHICLES TO COME BACK THIS YEAR OF THOSE ABOUT HALF ARE LIKELY TO BE LEASED AGAIN UNDER THE NEW PROGRAM FORD SAID FORD WILL SWEETEN ITS USED CAR LEASE DEALS BY EXTENDING ITS STANDARD NEW CAR WARRANTY TO COVER THE LEASE PERIOD AND BY OFFERING ROADSIDE ASSISTANCE THE USED CAR LEASES WILL CARRY LOWER INTEREST RATES THAN THOSE ON NEW CAR LEASES REDUCING POTENTIAL MONTHLY PAYMENTS ABOUT ONE HUNDRED DOLLARS A MONTH FORD SAID G. M. WAS THE BIG WINNER IN JANUARY POSTING A SIXTEEN POINT SIX PERCENT SALES GAIN TO THREE HUNDRED FORTY FIVE THOUSAND THREE HUNDRED ELEVEN CARS AND LIGHT TRUCKS THE NUMBER ONE AUTO MAKER SEIZED NEARLY A FULL PERCENTAGE POINT MORE OF MARKET SHARE TO THIRTY THREE POINT EIGHT PERCENT LIKE THE REST OF THE INDUSTRY G. M. WAS PARTICULARLY STRONG IN TRUCK SALES REPORTING A FORTY FOUR POINT FIVE PERCENT INCREASE IN FULL SIZED CHEVROLET PICKUP TRUCK DELIVERIES A THIRTY NINE POINT FOUR PERCENT INCREASE IN SMALL BLAZER SPORT UTILITY VEHICLE SALES AND A TWENTY TWO PERCENT TOTAL INCREASE IN TRUCK SALES IT WILL BE A GOOD HEALTHY MARKET THIS YEAR PREDICTED J. MICHAEL LOSH THE G. M. VICE PRESIDENT FOR SALES SERVICE AND MARKETING BUT MR. LOSH CAUTIONED THAT G. M.'S MARKET SHARE IS LIKELY TO SEE SAW DURING THE YEAR BECAUSE PLANT CLOSINGS FOR MODEL CHANGEOVER ARE LIKELY TO DISRUPT THE COMPANY'S CAR SALES DURING THE SECOND AND THIRD QUARTERS CONSEQUENTLY HE SAID G. M.'S MARKET SHARE SHOULD FINISH NINETEEN NINETY FOUR ABOUT WHERE IT FINISHED NINETEEN NINETY THREE AROUND THIRTY THREE PERCENT FORD'S JANUARY SALES ROSE FOURTEEN POINT NINE PERCENT TO TWO HUNDRED SIXTY THOUSAND NINE HUNDRED THIRTY SIX CARS AND TRUCKS THE NUMBER TWO AUTO MAKER OBSERVED THAT ITS RANGER PICKUPS EXPLORER SPORT UTILITY VEHICLES AND VILLAGER MINIVANS ALL SET SALES RECORDS FOR JANUARY AND THAT THE TOP SELLING TAURUS CAR POSTED A TWENTY FIVE PERCENT SALES INCREASE DESPITE TIGHT SUPPLIES THE NEW MUSTANG SOLD ELEVEN THOUSAND FIVE HUNDRED SEVENTY SEVEN UNITS MORE THAN TWICE AS MANY AS THE OLD MODEL SOLD A YEAR EARLIER ON THE OTHER HAND UNDERSCORING RELATIVE WEAKNESS IN THE LUXURY COUPE SEGMENT SALES OF THE LINCOLN MARK EIGHT PLUNGED THIRTY SEVEN PERCENT IN JANUARY G. M.'S COMPETING ELDORADO SOLD TWENTY EIGHT PERCENT FEWER THAN A YEAR EARLIER MEXICO FOR SALE IN THE U. S. TOTALS INCLUDE ALL VEHICLE SALES REPORTED IN THE PERIOD EXCEPT TOURIST DELIVERY SALES OF IMPORTED MODELS A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME YOUR PAGE ONE ARTICLE QUOTE HOW DRUG FIRMS SAVED PUERTO RICO TAX BREAK AFTER CLINTON ATTACK QUOTE DECEMBER TWENTY FIRST GRAPHICALLY DETAILS WHAT WE ENDURE THE INSIDIOUS INFLUENCE OF GIANT MAINLAND COMPANIES OVER THE DAILY LIVES OF THE ISLAND'S THREE POINT SIX MILLION SECOND CLASS CITIZENS WHILE THESE FIRMS BOAST OF SECTION NINE HUNDRED THIRTY SIX'S HIGHER PAYING HIGH TECH JOBS THE FACTS BELIE THEIR CLAIMS NOT ONE SUCH NEW JOB HAS BEEN CREATED SINCE NINETEEN SEVENTY FIVE AND WORSE MANY OF MY PATIENTS ARE UNABLE TO EVEN AFFORD THE MEDICATIONS THEY MANUFACTURE THEY FILL THEIR PRESCRIPTIONS ON LAY AWAY BUYING REQUIRED DOSAGES AS NEEDED NO WONDER ISLANDERS WERE EASY PREY TO THREATS OF JOB LOSS AND COMPANIES BOLTING THE ISLAND IF NINE HUNDRED THIRTY SIX WAS ELIMINATED WHEN UNEMPLOYMENT RUNS TWICE THE MAINLAND'S AND PER CAPITA INCOME IS HALF OF MISSISSIPPI'S HALF OF A LOAF OF BREAD IS BETTER THAN HAVING NONE AT ALL SECTION NINE HUNDRED THIRTY SIX MONEY PERMEATES THE ISLAND'S ECONOMY AND POLITICS FROM THE BANKS WHO TAKE IN THE BILLIONS TO THE PUBLIC OFFICIALS PROFESSIONALS AND BUSINESS PEOPLE WHO PROSPER FROM IT THEY HAVE A VESTED INTEREST IN KEEPING PUERTO RICO A U. S. APPENDAGE AS STATEHOOD WOULD END CORPORATE AMERICA'S GREAT TREASURY RAID THIS POWER AND INFLUENCE WAS NO MORE EVIDENT THAN IN OUR RECENT STATUS PLEBISCITE AS SIMILAR NINE HUNDRED THIRTY SIX THREATS WERE BANDIED ABOUT TO A FRIGHTENED ELECTORATE COMPROMISING OUR RIGHT TO FREELY EXPRESS SELF DETERMINATION VIEWS NOTWITHSTANDING THESE FALSE PROMISES OF STATEHOOD WITHOUT TAXATION A MAJORITY OF ISLANDERS REJECTED COMMONWEALTH FOR THE FIRST TIME IN FORTY YEARS OUR ISLAND HAS BEEN A U. S. POSSESSION FOR NINETY FIVE YEARS AND OUR PEOPLE AMERICAN CITIZENS SINCE NINETEEN SEVENTEEN LONGER THAN ANY OTHER TERRITORY NOT GRANTED STATEHOOD OR INDEPENDENCE PUERTO RICANS HAVE EARNED THEIR RIGHT TO A FIVE L. S. T. STAR THROUGH COMMITMENT TO AMERICAN IDEALS AT HOME AND IN DEFENSE OF FREEDOM ABROAD MIRIAM RAMIREZ DE FERRER M. D. YOU FAILED TO EXAMINE THE ESSENTIAL VALUE OF THE SECTION NINE HUNDRED THIRTY SIX TAX INCENTIVE TO THE PUERTO RICAN ECONOMY YOU MAKE THE SUBJECTIVE AND UNSUBSTANTIATED OBSERVATIONS THAT SECTION NINE HUNDRED THIRTY SIX IS ILL CONCEIVED AND WIDELY VIEWED AS ONE OF THE MOST INEFFICIENT PROVISIONS OF THE U. S. TAX CODE IN FACT SECTION NINE HUNDRED THIRTY SIX HAS BEEN REMARKABLY SUCCESSFUL IN MEETING ITS OBJECTIVES OF JOB CREATION AND ECONOMIC DEVELOPMENT TRANSFORMING PUERTO RICO FROM THE POORHOUSE OF THE CARIBBEAN INTO A THRIVING INDUSTRIAL ECONOMY MANUFACTURING ACCOUNTS FOR NEARLY FORTY PERCENT OF THE ISLAND G. D. P. ANNUAL SALARIES IN MANUFACTURING GENERALLY AVERAGE MORE THAN TWENTY TWO THOUSAND DOLLARS AND AVERAGE MORE THAN THIRTY FIVE THOUSAND DOLLARS IN THE PHARMACEUTICAL INDUSTRY ALTOGETHER ABOUT THREE HUNDRED THOUSAND JOBS OR NEARLY ONE THIRD THE ISLAND'S TOTAL EMPLOYMENT ARE DIRECTLY OR INDIRECTLY GENERATED BY SECTION NINE HUNDRED THIRTY SIX AS PUERTO RICO'S ECONOMY HAS IMPROVED IT HAS BECOME ONE OF THE WORLD'S LARGEST MARKETS FOR MAINLAND GOODS AND SERVICES THREE HUNDRED THOUSAND JOBS CREATED ON THE ISLAND TWO HUNDRED THOUSAND JOBS CREATED ON THE MAINLAND AND A VASTLY IMPROVED QUALITY OF LIFE FOR OUR FELLOW CITIZENS OF PUERTO RICO AT AN ANNUAL COST OF THREE BILLION DOLLARS ARE NOT THE RESULTS OF AN ILL CONCEIVED OR INEFFICIENT PROGRAM INDEED FEW IF ANY DOMESTIC OR FOREIGN AID PROGRAMS HAVE AN ECONOMIC IMPACT EQUIVALENT TO THAT OF SECTION NINE HUNDRED THIRTY SIX THE ARTICLE SUGGESTS THAT THERE IS SOMETHING SORDID IN THE COMPANIES' COMMINGLING THEIR OWN INTERESTS WITH THOSE OF THE PUERTO RICAN WORKERS OF COURSE THEIR INTERESTS ARE COMMINGLED PUERTO RICANS WOULD NOT HAVE JOBS IF THE COMPANIES CAN'T AFFORD TO OPERATE IN PUERTO RICO IT ISN'T EVERY DAY THAT WALL STREET CAN READ THE TEA LEAVES AND PREDICT WHICH COMPANIES ARE LIKELY TO WIN THEIR BATTLES WITH THE INTERNAL REVENUE SERVICE BUT ROBERT WILLENS IS WILLING TO DO IT BESIDES BEING A LEHMAN BROTHERS ANALYST MR. WILLENS IS A TAX ACCOUNTANT HE THINKS THAT A RECENT I. R. S. RULING INVOLVING BOAT MAKER BRUNSWICK CORPORATION ROLLS OUT THE CRYSTAL BALL FOR INVESTORS SUGGESTING THAT OTHER UNRELATED COMPANIES INCLUDING INTERNATIONAL MULTIFOODS CHARLES SCHWAB FIRST U. S. A. AND PETROLEUM HEAT AND POWER MAY MANAGE TO SETTLE THEIR TAX DISPUTES FAVORABLY THE RULING INVOLVES AN ODDITY FOUND ON THE BOOKS OF A LOT OF ACQUISITION HUNGRY COMPANIES QUOTE INTANGIBLE ASSETS QUOTE THE ACCOUNTANTS CALL THEM INCLUDED ARE SUCH ITEMS AS CUSTOMER LISTS DEALER NETWORKS AND COMPUTER SOFTWARE A STEEL MILL GENERALLY RAISES NO EYEBROWS AT THE I. R. S. WHEN ITS VALUE IS DEPRECIATED DEDUCTED FROM A COMPANY'S TAXABLE INCOME OVER A PERIOD OF YEARS BUT THE I. R. S. HAS LONG SQUIRMED AT DEPRECIATION OF INTANGIBLES BECAUSE OF THE COST TO UNCLE SAM IN THE BRUNSWICK CASE INVOLVING INTANGIBLES HOWEVER THE COMPANY LAST MONTH AGREED TO PAY THE I. R. S. ONLY FIFTY FIVE MILLION DOLLARS OUT OF FIVE HUNDRED MILLION DOLLARS THAT THE AGENCY HAD CLAIMED WAS OWED THE I. R. S. APPROVED THE SETTLEMENT PROVIDED BRUNSWICK WOULD STRETCH THE DEPRECIATION PERIOD TO FIFTEEN YEARS FROM AN AVERAGE OF LESS THAN TEN IT COULD SET A PRECEDENT FOR OTHER CORPORATIONS BATTLING THE I. R. S. ON INTANGIBLE ASSETS MR. WILLENS SAYS OF THE BRUNSWICK CASE THE I. R. S. INSISTED IT WASN'T ESTABLISHING A PATTERN BUT THERE'S A BIT OF HISTORY BEHIND THE I. R. S. MOVE LAST YEAR THE SUPREME COURT IN DECIDING THE SEPARATE CASE OF NEWARK MORNING LEDGER BOLSTERED BRUNSWICK'S ARGUMENT THAT FIVE HUNDRED MILLION DOLLARS OF INTANGIBLE ASSETS ACQUIRED IN NINETEEN EIGHTY SIX SHOULD BE DEDUCTIBLE AND IN AUGUST A MAJOR TAX LAW AFFIRMED THE HIGH COURT'S STANCE DIRECTING THE I. R. S. TO SETTLE SUCH DISPUTES WITH COMPANIES THOUGH ALSO SHAVING POTENTIAL INTANGIBLES RELATED DEDUCTIONS BY STRETCHING THE DEPRECIATION PERIOD TO FIFTEEN YEARS AT INTERNATIONAL MULTIFOODS A MINNEAPOLIS FOOD SERVICE CONCERN THE I. R. S. ISN'T ALLOWING INTANGIBLE ASSET DEDUCTIONS FOR THE YEAR ENDED FEBRUARY TWENTY NINTH NINETEEN EIGHTY EIGHT OR FOR THE PRIOR YEAR THOSE ASSETS INCLUDING DISTRIBUTOR NETWORKS AND CUSTOMER LISTS WERE OBTAINED BY ACQUIRING DISTRIBUTORS AND WHOLESALERS DURING THE TWO YEARS JOHN SCHAEFER INTERNATIONAL MULTIFOODS' DIRECTOR OF TAXES SAYS ABOUT TWENTY MILLION DOLLARS TO THIRTY MILLION DOLLARS IN TAXES ARE INVOLVED WE'VE BEEN TOLD BY THE I. R. S. THAT IT WILL SOON ISSUE GUIDELINES AND WE HOPE THAT THE BRUNSWICK DECISION POINTS THE WAY HE ADDS HE ESTIMATES A FAVORABLE I. R. S. DECISION COULD BOOST CASH FLOW OF INTERNATIONAL MULTIFOODS BY ONE MILLION DOLLARS TO TWO MILLION DOLLARS A YEAR FOR A DECADE OR MORE CHARLES SCHWAB THE SAN FRANCISCO DISCOUNT BROKERAGE HOUSE TWO YEARS AGO FILED A U. S. TAX COURT PETITION REBUTTING AN I. R. S. CLAIM FOR ADDED TAXES OF TWENTY EIGHT MILLION DOLLARS FOR NINETEEN EIGHTY EIGHT THE NINETEEN NINETY TWO ANNUAL REPORT SAYS THE I. R. S. CLAIM RELATES TO A MANAGEMENT BUYOUT OF SCHWAB IN NINETEEN EIGHTY EIGHT THE BROKERAGE HOUSE NOW IS PUBLICLY TRADED ON THE NEW YORK STOCK EXCHANGE HUGO QUACKENBUSH SENIOR VICE PRESIDENT SAYS THE I. R. S. IS DISPUTING DEPRECIATION OF INTANGIBLE ASSETS SUCH AS SOFTWARE INVOLVED IN THE MANAGEMENT BUYOUT IF SCHWAB'S CLAIM FOR NINETEEN EIGHTY EIGHT IS ACCEPTED BY THE I. R. S. SIMILAR DEDUCTIONS OF INTANGIBLE ASSETS FROM NINETEEN EIGHTY NINE THROUGH NINETEEN NINETY TWO ALSO COULD PREVAIL THE ANNUAL REPORT INDICATES IF THE I. R. S. TAX SETTLEMENT IS REASONABLE AS INDICATED BY THE BRUNSWICK CASE WE EXPECT TO PAY LITTLE OF THE TWENTY EIGHT MILLION DOLLARS SAYS MR. QUACKENBUSH THE BRUNSWICK DECISION HAS LIFTED A CLOUD FROM THE COMPANY FIRST U. S. A. OF DALLAS IN THE CREDIT CARD BUSINESS HAS TAKEN TAX DEDUCTIONS TO DEPRECIATE INTANGIBLE ASSETS RANGING FROM FIFTY THREE MILLION DOLLARS TO MORE THAN FIFTY SIX MILLION DOLLARS IN EACH OF THE THREE CONSECUTIVE FISCAL YEARS THROUGH JUNE THIRTIETH NINETEEN NINETY THREE AS OF DECEMBER THIRTY FIRST HOWEVER FIRST U. S. A. STILL HAD TWO HUNDRED FOUR MILLION DOLLARS IN INTANGIBLE ASSETS LEFT TO DEPRECIATE THE ASSETS INVOLVE OVERPAYMENTS IN BUYING CREDIT CARD LOANS WHEN MANAGEMENT WITH MERRILL LYNCH PARTNERS BOUGHT FIRST U. S. A. FROM LOMAS FINANCIAL IN NINETEEN EIGHTY NINE FIRST U. S. A. WENT PUBLIC IN NINETEEN NINETY TWO IN A REGULATORY FILING FIRST U. S. A. SAYS THE COMPANY BELIEVES ITS DEDUCTIONS WERE PROPER GEORGE MCCANE SENIOR VICE PRESIDENT SAYS THE COMPANY IS STUDYING THE BRUNSWICK CASE BUT HASN'T YET FORMED AN OPINION ABOUT ITS EFFECT ON FIRST U. S. A. AT PETROLEUM HEAT AND POWER A STAMFORD CONNECTICUT FUEL OIL DEALER GEORGE LEIBOWITZ SENIOR VICE PRESIDENT FINANCE NOTES THAT THE COMPANY WAS AUDITED BY THE I. R. S. FROM LATE NINETEEN NINETY ONE UNTIL EARLY NINETEEN NINETY THREE OVER INTANGIBLE ASSET DEDUCTIONS RESULTING FROM ONE HUNDRED TWENTY ACQUISITIONS OF DISTRIBUTORS FROM NINETEEN SEVENTY NINE THROUGH NINETEEN NINETY IN NINETEEN NINETY TWO FOR EXAMPLE THE COMPANY DEDUCTED TWENTY THREE POINT FIVE MILLION DOLLARS FOR ACQUIRING CUSTOMER LISTS HE SAYS PETROLEUM HEAT HASN'T NEEDED TO USE THESE DEDUCTIONS LATELY TO REDUCE TAXABLE INCOME BECAUSE IT HAS BEEN UNPROFITABLE WITH A NET LOSS WIDER THAN EIGHT MILLION DOLLARS FOR NINETEEN NINETY THREE QUOTE BUT THERE COULD ALWAYS HAVE BEEN A POTENTIAL PROBLEM WITH THE I. R. S. GOING FORWARD QUOTE HE SAYS QUOTE SO THE BRUNSWICK CASE HELPS REMOVE ANY UNCERTAINTY ABOUT OUR COMPANY QUOTE K. L. M. ROYAL DUTCH AIRLINES SAID IT SWUNG TO A PROFIT OF AROUND FIFTEEN MILLION GUILDERS SEVEN POINT SEVEN MILLION DOLLARS IN ITS THIRD QUARTER ENDED DECEMBER THIRTY FIRST FROM A LOSS OF FOUR HUNDRED THIRTY SEVEN MILLION GUILDERS A YEAR EARLIER THE THIRD QUARTER PROFIT WAS MUCH BETTER THAN THE FORTY MILLION SEVENTY MILLION GUILDERS OF LOSSES ANALYSTS SAID THEY WERE EXPECTING ALTHOUGH THERE HAD BEEN RUMORS ON THE AMSTERDAM STOCK EXCHANGE THAT THE COMPANY WOULD REPORT A SMALL PROFIT AS EXPECTED K. L. M. ALSO ANNOUNCED A LONG AWAITED CAPITAL ISSUE OF TWENTY MILLION COMMON SHARES TO BE SOLD IN MARCH A FILING WITH THE U. S. SECURITIES AND EXCHANGE COMMISSION WILL BE MADE SHORTLY THE DUTCH FLAG CARRIER SAID K. L. M. ADDED THAT THE DUTCH GOVERNMENT INTENDS TO MAINTAIN ITS THIRTY EIGHT POINT TWO PERCENT STAKE IN K. L. M. BY BUYING SOME OF THE COMMON STOCK BEING OFFERED IN MARCH AS WELL AS BY PURCHASING PREFERENCE SHARES TO BE ISSUED BY THE COMPANY AT THE CURRENT K. L. M. SHARE PRICE OF AROUND FORTY EIGHT GUILDERS THE COMMON STOCK ISSUE ALONE WOULD RAISE THE EQUIVALENT OF NEARLY ONE BILLION GUILDERS THE MAJOR FACTOR BEHIND THE SWING TO A PROFIT IN THE LATEST THIRD QUARTER FROM THE HUGE LOSS A YEAR EARLIER IS A THREE HUNDRED MILLION GUILDER CHARGE K. L. M. BOOKED A YEAR AGO TO COVER THE WRITE OFF OF ITS THEN REMAINING INVESTMENT IN NORTHWEST AIRLINES K. L. M. HOLDS TWENTY PERCENT OF THE COMMON STOCK IN NORTHWEST PLUS AROUND THREE HUNDRED MILLION DOLLARS OF SUBORDINATED PREFERRED BONDS IN THE THIRD QUARTER OF FISCAL NINETEEN NINETY FOUR K. L. M. HAD A ONE MILLION GUILDER PRETAX LOSS ON ITS MINORITY HOLDINGS COMPARED WITH A THREE HUNDRED FIFTY FIVE MILLION GUILDER DEFICIT THAT INCLUDES THE CHARGE A YEAR EARLIER BUT DUE TO LAST YEAR'S NORTHWEST WRITE OFF K. L. M. ISN'T ANY LONGER EXPOSED TO THE U. S. AFFILIATE'S LOSSES MEANTIME THE LATEST FISCAL THIRD QUARTER NET PROFIT WAS BUOYED BY ELEVEN MILLION GUILDERS OF PRETAX EARNING FROM ASSET SALES THERE WASN'T ANY SUCH PROFIT A YEAR EARLIER ANOTHER FACTOR FOR THE RETURN TO PROFIT LAST QUARTER WAS THAT K. L. M. WAS ABLE TO HOLD OPERATING COSTS STEADY WHILE REVENUE ROSE SEVEN POINT ONE PERCENT FOR THE FIRST NINE MONTHS OF THE CURRENT FISCAL YEAR K. L. M. SWUNG TO A NET PROFIT OF TWO HUNDRED SIXTY MILLION GUILDERS OR FOUR POINT THREE NINE GUILDERS A SHARE FROM THE YEAR EARLIER LOSS OF TWO HUNDRED TWENTY NINE MILLION GUILDERS OR FOUR POINT THREE FOUR GUILDERS A SHARE REVENUE ROSE THREE PERCENT TO SIX POINT SIX TWO BILLION GUILDERS FROM SIX POINT FOUR SIX BILLION K. L. M. REITERATED ITS POSITIVE VIEW THAT IT WILL POST A QUOTE SLIGHT QUOTE NET PROFIT FOR THE FULL FISCAL YEAR ENDING NEXT MARCH THIRTY FIRST BUT BECAUSE OF THE USUAL SEASONAL SLACKNESS IN THE JANUARY MARCH PERIOD THE FOURTH QUARTER WILL SHOW A LOSS K. L. M. ADDED SEPARATELY K. L. M. SAID THE CHAIRMAN OF THE BOARD OF SUPERVISORS IS STEPPING DOWN FOR HEALTH REASONS THE AIRLINE SAID SIXTY ONE YEAR OLD MAX ALBRECHT WILL BE SUCCEEDED BY THE CURRENT VICE CHAIRMAN OF THE SUPERVISORS C. J. OORT THE SUPERVISORY BOARD OF A DUTCH COMPANY OVERSEES THE BOARD OF DIRECTORS AND HAS A SAY IN STRATEGIC MATTERS LIKE A BELEAGUERED GENERAL EDWARD QUOTE TED QUOTE ROGERS SPREADS OUT A MAP OF ONTARIO AND DESCRIBES THE BATTLE LINES ROGERS COMMUNICATIONS INCORPORATED SERVES CABLE CUSTOMERS IN THE RED AREAS MACLEAN HUNTER LIMITED IN THE BLUE ZONES BUT THE TELEPHONE COMPANY IS EVERYWHERE YOU JUST HAVE TO KNOW MILITARY HISTORY TO KNOW WHAT WILL HAPPEN MR. ROGERS SAYS WE'LL BE ENCIRCLED AND WE'LL BE WIPED OUT IT IS TO CONSOLIDATE THE BLUE AND RED FORCES MR. ROGERS SAYS THAT HE PLANS A TAKEOVER OFFER FOR MACLEAN HUNTER BY ROGERS COMMUNICATIONS OF WHICH HE IS PRESIDENT CHIEF EXECUTIVE OFFICER AND CONTROLLING SHAREHOLDER TERMS OF ROGERS' OFFER FOR EIGHTY THREE PERCENT OF MACLEAN HUNTER'S STOCK WON'T BE DECIDED UNTIL A ROGERS BOARD MEETING TODAY BUT THE CURRENT VALUE OF THOSE SHARES IS THREE BILLION CANADIAN DOLLARS TWO POINT TWO SIX BILLION U. S. DOLLARS CANADA HASN'T YET HAD THE FLURRY OF CROSS MEDIA ACQUISITIONS THAT IS SWEEPING THE U. S. BUT REGULATIONS PREVENTING TELEPHONE COMPANIES FROM BUYING MAJOR CABLE OPERATORS ARE UNDER REVIEW AND MR. ROGERS WANTS TO BE READY JUST IN CASE HE ALSO WANTS TO EXPAND THE SUBSCRIBER BASE FOR MULTIMEDIA OFFERINGS HE IS DEVELOPING CANADIAN REGULATORS WILL TAKE A CLOSE LOOK AT ANY LINKUP BETWEEN ROGERS COMMUNICATIONS THE NATION'S LEADING CABLE T. V. OPERATOR AND MACLEAN HUNTER WHICH RANKS FOURTH BECAUSE TOGETHER THEY ACCOUNT FOR THIRTY FIVE PERCENT OF THE CANADIAN CABLE BUSINESS BUT MR. ROGERS SAYS REGULATORS SHOULD ALLOW CABLE COMPANIES TO CONSOLIDATE ON A REGIONAL BASIS OR YOU BREAK UP THE TELEPHONE COMPANIES AND LET THEM HAVE ALL DIFFERENT COLORS ON THEIR MAPS TOO MR. ROGERS WHO IS SOMETIMES CALLED THE TED TURNER OF CANADA IS A TELECOMMUNICATIONS PIONEER IN A FAMILY THAT HAS A TRADITION OF PIONEERING HIS FATHER INVENTED THE FIRST HOME RADIO TO RUN ON HOUSE CURRENT INSTEAD OF BATTERIES AND THE YOUNGER MR. ROGERS STARTED CANADA'S FIRST COMMERCIAL F. M. STATION WHILE HE WAS STILL IN LAW SCHOOL IN THE NINETEEN SIXTIES MR. ROGERS BECAME AN EARLY CABLE TELEVISION OPERATOR AND HE WENT INTO THE FLEDGLING CELLULAR TELEPHONE BUSINESS IN NINETEEN EIGHTY THREE HE NOW CONTROLS CANADA'S LARGEST CELLULAR TELEPHONE COMPANY AND BIGGEST CABLE OPERATOR AND HE IS A MINORITY PARTNER IN UNITEL COMMUNICATIONS INCORPORATED THE COUNTRY'S BIGGEST LONG DISTANCE COMPETITOR TO TRADITIONAL TELEPHONE COMPANIES MR. ROGERS' FRIENDS SUCH AS DOUGLAS BASSETT A TORONTO BROADCASTING EXECUTIVE SAY HE'S GENEROUS DOWN TO EARTH AND RESPONSIVE TO CUSTOMERS DURING THE GULF WAR A CABLE SUBSCRIBER WITH FAMILY IN ISRAEL WAS UPSET WHEN MR. ROGERS' COMPANY STOPPED TRANSMITTING CABLE NEWS NETWORK ON A FREE TRIAL BASIS A SALES REPRESENTATIVE TOLD THE SUBSCRIBER THAT IT WOULD TAKE A WEEK TO ADD C. N. N. TO HIS REGULAR SERVICE SO THE SUBSCRIBER LOOKED UP MR. ROGERS' NUMBER IN THE PHONE BOOK AND CALLED HIM AT HOME THE NEXT MORNING A SUNDAY ON MR. ROGERS' ORDERS TECHNICIANS ARRIVED AT THE SUBSCRIBER'S HOUSE TO HOOK HIM UP TO THE NEWS CHANNEL MR. BASSETT SAYS MR. ROGERS NEVER SLOWS DOWN EVEN ON HOLIDAYS AT HIS COTTAGE ON THE MUSKOKA LAKES NORTH OF TORONTO TALL AND SLIM AND SPORTING A TAN FROM HIS FREQUENT GETAWAYS TO THE BAHAMAS THE SIXTY YEAR OLD MR. ROGERS SAYS HIS ARM IS GETTING A LITTLE TOO CREAKY FOR TENNIS BUT HE SWIMS A LOT TO STAY FIT PUBLIC SHAREHOLDERS IN MR. ROGERS' COMPANIES HAVE LITTLE VOTING POWER AND RARELY SEE A PROFIT HE CONTROLS THE BUSINESSES THROUGH SPECIAL VOTING SHARES NEW PROJECTS AND EXPANSION TAKE PRECEDENCE OVER NET INCOME THE FLAGSHIP ROGERS COMMUNICATIONS REPORTED LOSSES OF ONE HUNDRED TWENTY THREE POINT SEVEN MILLION CANADIAN DOLLARS IN THE NINE MONTHS ENDED SEPTEMBER THIRTIETH AND ONE HUNDRED EIGHTY POINT THREE MILLION CANADIAN DOLLARS FOR ALL OF NINETEEN NINETY TWO BUT SHAREHOLDERS ARE HAPPY TO BE ABOARD BECAUSE SHARP GROWTH HAS MEANT HEFTY CAPITAL GAINS A DOLLAR INVESTED IN ROGERS COMMUNICATIONS' SHARES IN NINETEEN SEVENTY NINE WOULD HAVE A VALUE OF MORE THAN TWENTY FIVE CANADIAN DOLLARS TODAY HIS EXPANSION EFFORTS HAVE FORCED MR. ROGERS TO PIONEER IN THE ART OF RAISING MONEY AS WELL JUST LAST MONTH ROGERS COMMUNICATIONS ISSUED THE COUNTRY'S FIRST CANADIAN DOLLAR DENOMINATED JUNK BONDS IN NINETEEN NINETY ONE IT WAS THE FIRST CANADIAN COMPANY TO ISSUE LIQUID YIELD OBLIGATION NOTES OR LYONS WHICH ARE HYBRID SECURITIES THAT ARE PART STOCK AND PART BOND DESPITE THE BIG MONEY INVOLVED IN THE MACLEAN HUNTER BID MR. ROGERS PLAYS DOWN THE DEAL AS MERELY A CONTINUATION OF ROGERS' GROWTH HE'S SKETCHY ON HIS PLANS IF THE ACQUISITION SUCCEEDS BUT HE HAS BIG PLANS FOR NEW MULTIMEDIA SERVICES HE MET WITH MICROSOFT CORPORATION CHAIRMAN BILL GATES LAST MONTH AND HOPES TO TEST SOME MICROSOFT SOFTWARE IN CANADA WITHIN SIX MONTHS UNLIKE SOME OF HIS EARLIER FORAYS INTO NEW TECHNOLOGY MR. ROGERS SAYS THE MACLEAN HUNTER BID POSES NO RISK HERE AT ALL IN FACT QUOTE HE ADDS QUOTE THERE'S A RISK IN NOT DOING IT FOR THE INDUSTRY AND FOR US QUOTE WILLIAM H. GRAY THE THIRD WAS ELECTED A DIRECTOR OF THE DIVERSIFIED HIGH TECHNOLOGY CONCERN INCREASING THE BOARD'S SIZE TO THIRTEEN MEMBERS MR. GRAY FIFTY TWO YEARS OLD IS PRESIDENT OF THE UNITED NEGRO COLLEGE FUND FRANZ JOSEF KORTUEM CHAIRMAN OF AUDI A. G. THE LUXURY CAR DIVISION OF VOLKSWAGEN A. G. IS EXPECTED TO BE OUSTED FROM HIS POST TODAY AT AN EXTRAORDINARY MEETING OF THE SUPERVISORY BOARD V. W. INSIDERS SAID BOTH AUDI AND V. W. PRESS OFFICES REFUSED TO COMMENT OFFICIALLY ON REPORTS OF MR. KORTUEM'S IMPENDING DISMISSAL AUDI SAID MR. KORTUEM WASN'T AVAILABLE FOR COMMENT MR. KORTUEM WAS INSTALLED JUST THIRTEEN MONTHS AGO TO SUCCEED FERDINAND PIECH WHO BECAME V. W. CHAIRMAN MR. PIECH WHO IS HIMSELF UNDER SEVERE PRESSURE TO TURN AROUND EUROPE'S LARGEST AND MOST TROUBLED CAR MAKER IS SAID TO WANT TO REPLACE MR. KORTUEM FOR WHAT HE DEEMS TO BE UNSATISFACTORY PERFORMANCE AT AUDI AFTER POSTING A FIVE HUNDRED EIGHT MILLION MARK TWO HUNDRED NINETY THREE POINT ONE MILLION DOLLARS PRETAX PROFIT IN NINETEEN NINETY TWO UNDER MR. PIECH'S MANAGEMENT AUDI IS EXPECTED TO POST A NINETEEN NINETY THREE LOSS OF AROUND TWO HUNDRED FORTY MILLION MARKS SALES IN NINETEEN NINETY THREE DROPPED TWENTY FIVE PERCENT TO TWELVE POINT FIVE BILLION MARKS FROM SIXTEEN POINT SEVEN BILLION MARKS IN NINETEEN NINETY TWO MR. KORTUEM'S DEPARTURE WOULD COME ON THE HEELS OF MR. PIECH'S DISMISSAL IN LATE SEPTEMBER OF JUAN ANTONIO DIAZ ALVAREZ THE CHAIRMAN OF V. W.'S SPANISH SUBSIDIARY SEAT S. A. MR. DIAZ ALVAREZ WAS FAULTED FOR BROADSIDING V. W.'S RECOVERY PLANS WITH A SURPRISE LOSS OF ONE POINT FOUR BILLION MARKS AT SEAT LAST YEAR MR. KORTUEM IS EXPECTED TO BE SUCCEEDED BY AUDI'S CURRENT CHIEF FOR TECHNICAL DEVELOPMENT HERBERT DEMEL BUT PEOPLE CLOSE TO V. W. SAID MR. DEMEL WILL BE GIVEN ONLY THE TITLE OF SPOKESMAN FOR THE MANAGEMENT BOARD NOT CHAIRMAN BACK IN THE DAYS WHEN MONEY WAS CALLED QUOTE DOUGH QUOTE AND HIGH NET WORTH INDIVIDUALS WERE SIMPLY CALLED QUOTE RICH QUOTE IT WAS A CINCH TO KNOW WHAT YOUR BROKER WAS TALKING ABOUT BUT TODAY BROKERS INSURANCE AGENTS AND OTHER FINANCIAL SALESPEOPLE USE A NEW VOCABULARY THAT GLOSSES OVER THE HARD FACT THAT THEY'RE WELL SELLING SOMETHING AND HOPING TO EARN A COMMISSION ON THE DEAL WALK INTO A BROKER'S OFFICE THESE DAYS YOU WON'T BE SOLD A PRODUCT YOU WON'T EVEN FIND A BROKER INSTEAD A FINANCIAL ADVISER WILL HELP YOU SELECT AN APPROPRIATE PLANNING VEHICLE OR OFFER A MENU OF INVESTMENT CHOICES OR OPTIONS AMONG WHICH TO ALLOCATE YOUR MONEY INVESTORS WHO AREN'T CURRENT WITH THE LINGO MIGHT FAIL TO KEEP THEIR CONSUMERS' WITS ABOUT THEM AND END UP BUYING A LEMON FORGET ABOUT BUYING HOWEVER THESE DAYS YOU'RE CHOOSING SELECTING INVESTING ALLOCATING AND OTHERWISE EMPOWERING YOUR ASSETS IF YOU UNDERSTAND THE TERMINOLOGY YOU'RE HALF WAY THERE SAYS JAMES E. WILSON PRESIDENT OF THE CONSUMER FINANCIAL EDUCATION FOUNDATION IN COLUMBIA S. C. YOU AT LEAST KNOW WHAT QUESTIONS TO ASK TAKE THE WORD COMMISSION THAT OLD FASHIONED TERM FOR WHAT BROKERS CHARGE FOR DOING BUSINESS WITH YOU COMMISSIONS ARE THE REAL REASON BROKERS TALK TO YOU AND WHY THEY MIGHT RECOMMEND ONE PRODUCT SUCH AS A VARIABLE ANNUITY WHICH PAYS A SIX PERCENT COMMISSION OVER ANOTHER SUCH AS A FIXED ANNUITY WHICH PAYS THREE PERCENT BUT THE NEW SALES VERNACULAR GENERALLY DOESN'T SPEAK OF COMMISSIONS EVEN THOUGH YOU STILL PAY THEM SOMETIMES THE CHARGES ARE BUILT INTO THE PRICE OF THE INVESTMENT AS THEY ARE FOR BONDS INSURANCE POLICIES AND OVER THE COUNTER STOCKS MORE OFTEN THEY GO BY SOME OTHER NAME FOR INSTANCE WHEN YOU BUY MUTUAL FUNDS FROM A BROKER YOU TYPICALLY PAY QUOTE FRONT END LOADS QUOTE WHEN YOU SELL SUCH FUNDS YOU MIGHT PAY BACK END LOADS ALSO KNOWN AS SURRENDER PENALTIES WHICH SEEM TO IMPLY YOU'VE DONE SOMETHING WRONG THUS A SALES PITCH THAT CLAMORS THERE'S NO COMMISSION SO ALL YOUR MONEY GOES TO WORK FOR YOU AT ONCE OFTEN TRANSLATES TO THERE'S A DOOZY OF A FEE WHEN YOU TAKE YOUR MONEY OUT TO COMPLICATE MATTERS FURTHER MANY MUTUAL FUNDS SOLD BY BROKERS DON'T HAVE FRONT END OR BACK END LOADS BUT THAT DOESN'T MEAN THEY'RE NO LOAD FUNDS LIKE THOSE SOLD DIRECTLY TO INVESTORS BY MUTUAL FUND COMPANIES RATHER IT PROBABLY MEANS THE BROKER IS HAWKING CLASS C. SHARES WHERE SALES CHARGES ARE ROLLED INTO THE FUND'S ANNUAL EXPENSES INSTEAD OF COMMISSIONS YOU HAVE EXPENSE RATIOS THAT ARE ABOUT TWICE AS HIGH AS THOSE FOR OTHER FUNDS FOR INVESTORS IT ENDS UP BEING THE SAME THING INDEED WHENEVER A BROKER MAKES A POINT OF INSISTING THERE'S NO COMMISSION AT ALL START LOOKING FOR ONE NO MATTER WHAT ANYONE SAYS YOU CAN COUNT ON THIS THERE'S ALWAYS A COMMISSION THESE PEOPLE DON'T PUSH THESE PRODUCTS FOR FREE INSURANCE AGENTS LIKEWISE ABHOR THE USE OF COMMISSIONS THE WORD THAT IS AND BECAUSE INSURANCE SALESPEOPLE AREN'T REQUIRED TO DISCLOSE SUCH CHARGES UNSCHOOLED INVESTORS MAY THINK THEY DON'T EXIST IN REALITY INSURANCE POLICIES HAVE AMONG THE HIGHEST COMMISSIONS OF ANY FINANCIAL PRODUCT RUNNING AS HIGH AS ONE HUNDRED PERCENT OF INITIAL INVESTMENTS IF YOU PLUNK DOWN A THIRTEEN THOUSAND DOLLAR FIRST YEAR PREMIUM FOR WHOLE LIFE OR UNIVERSAL LIFE INSURANCE ROUGHLY NINE THOUSAND DOLLARS WOULD GO TO THE AGENT AS A COMMISSION ABOUT TWO THOUSAND DOLLARS WOULD GO TO THE GENERAL AGENT AS COMMISSION AND THE REMAINING TWO THOUSAND DOLLARS WOULD GO TO COVER OTHER MARKETING COSTS THAT'S WHY IF YOU CANCEL YOUR POLICY IN THE EARLY YEARS YOU WALK AWAY EMPTY HANDED TO BE SURE AGENTS DO DISCUSS COMMISSIONS AMONG THEMSELVES BUT WHEN PRESSED IN PUBLIC THEY INSIST THAT REGULATORS LIMIT SUCH CHARGES TO FIFTY PERCENT OR SO OF THE FIRST YEAR PAYMENTS COMMISSIONS ABOVE THAT LEVEL ARE SIMPLY RENAMED QUOTE EXPENSE ALLOWANCE REIMBURSEMENTS QUOTE SAYS CONSUMER FINANCIAL'S MR. WILSON AND WHAT ARE THOSE AGENTS SELLING ANYWAY NOTHING SO PROSAIC AS LIFE INSURANCE INSTEAD THEY PEDDLE SUCH EUPHEMISMS AS PRIVATE RETIREMENT ACCOUNTS COLLEGE SAVINGS PLANS AND CHARITABLE REMAINDER TRUSTS PETER KATT AN INSURANCE ADVISER IN WEST BLOOMFIELD MICHIGAN SAYS HE EVEN SAW A POLICY MARKETED AS AN INTERMEDIATE TERM BOND FUND WITH A MORTALITY CHARGE INCREASINGLY THE LIFE INSURANCE INDUSTRY SPENDS ITS TIME TRYING TO CONCOCT WAYS TO AVOID USING THAT TERM SAYS JOHN R. GRAHAM OF GRAHAM COMMUNICATIONS AN INSURANCE MARKETER BASED IN QUINCY MASSACHUSETTS SALESMEN AND BROKERS HAVE ALSO BEEN EXPUNGED FROM THE NEW SALES LEXICON INSURERS NOWADAYS RELY ON ESTATE PLANNING SPECIALISTS RETIREMENT PLANNING SPECIALISTS AND BENEFITS SPECIALISTS TO SELL THEIR POLICIES QUOTE YOU RARELY SEE A BUSINESS CARD FROM A LIFE INSURANCE AGENT THAT HAS THE WORD INSURANCE ON IT QUOTE SAYS MR. GRAHAM THE LAST THING THEY WANT TO BE KNOWN AS IS AN INSURANCE AGENT BECAUSE THEY DON'T THINK ANYONE WILL WANT TO TALK TO THEM ON WALL STREET MEANWHILE IT'S THE FINANCIAL CONSULTANTS AND INVESTMENT ADVISERS WHO DO THE TOUTING THESE DAYS THEY WERE CALLING THEMSELVES FINANCIAL PLANNERS FOR A WHILE BUT PLANNING DIDN'T HAVE THE SAME SEX APPEAL AS ADVISING IT'S A WAY TO IMMUNIZE YOURSELF FROM CRITICISM SAYS H. LYNN HOPEWELL EDITOR OF THE JOURNAL OF FINANCIAL PLANNING IN FALLS CHURCH VIRGINIA SUCH LANGUAGE MAKES IT HARDER TO DISLIKE BROKERS OR QUESTION THEIR MOTIVES OR ADVICE INVESTORS HAVE CODE NAMES TOO A QUICK SCAN THROUGH THE TRADE LITERATURE THAT BROKERS AND INSURANCE AGENTS READ TO PICK UP SELLING TIPS REVEALS THAT INDIVIDUALS ARE QUOTE CLIENTS QUOTE TO THEIR FACE AND QUOTE PROSPECTS QUOTE BEHIND THEIR BACKS THE BEST KIND IS A RISK TOLERANT HIGH NET WORTH INDIVIDUAL OR HNWI PRONOUNCED HEN WEE WHICH IS SOMEONE WITH A LOT OF MONEY WHO IS WILLING TO TAKE A FLIER ALTERNATELY THE RISK AVERSE HNWI IS A PROSPECT WHO WILL BUY BONDS AMONG OTHER LINGUISTIC SLEIGHTS OF HAND IN COMMON USAGE THESE DAYS SAYING TAX FREE WHEN IN FACT IT'S ONLY TAX DEFERRED HIGH YIELD WHEN IT'S DOWNRIGHT RISKY AND PROJECTED RETURNS WHEN IT'S MORE LIKELY IN YOUR DREAMS GUARANTEED LIKE LITE AND ALL NATURAL MORE OFTEN THAN NOT MEANS NOTHING AT ALL THE THREE MAJOR BROADCAST NETWORKS FRUSTRATED WITH THE QUALITY OF THE TELEVISION RATINGS PROVIDED BY A. C. NIELSEN COMPANY SAID THEY ARE SETTING UP THEIR OWN EXPERIMENTAL RATINGS SERVICE THE TWENTY MILLION DOLLARS TEST SYSTEM NETWORK EXECUTIVES SAID YESTERDAY IS MEANT TO BE MORE ACCURATE AND MORE USER FRIENDLY THAN NIELSEN'S CURRENT SYSTEM MORE THAN TEN BILLION DOLLARS ANNUALLY IN ADVERTISING TIME ON THE THREE NETWORKS IS BOUGHT AND SOLD BASED ON THE NIELSEN RATINGS THE THREE NETWORK PROJECT CALLED THE SYSTEM FOR MEASURING AND REPORTING TELEVISION IS BEING DEVELOPED THROUGH THE COMMITTEE ON NATIONAL TELEVISION AUDIENCE MEASUREMENT WHOSE MEMBERS ARE CAPITAL CITIES SLASH A. B. C. INCORPORATED C. B. S. INCORPORATED GENERAL ELECTRIC COMPANY'S N. B. C. AND THE NATIONAL ASSOCIATION OF BROADCASTERS IT WILL BEGIN TESTING IN NINETEEN NINETY FIVE AND COULD BE TURNED INTO A NATIONAL SYSTEM TO RIVAL NIELSEN'S IN THREE YEARS IF NIELSEN DOESN'T MAKE CHANGES EXECUTIVES SAID QUOTE IF WE FEEL THE NEED WE'RE PREPARED TO GO THAT ROUTE DOWN THE LINE QUOTE SAID PETER CHRISANTHOPOULOS AN A. B. C. EXECUTIVE VICE PRESIDENT NIELSEN A UNIT OF DUN AND BRADSTREET CORPORATION HAS HAD A MONOPOLY ON NATIONAL TELEVISION RATINGS SINCE A COMPETITOR BRITAIN'S A. G. B. TELEVISION RESEARCH FOLDED ITS U. S. OPERATIONS IN NINETEEN EIGHTY EIGHT FOR LACK OF FINANCIAL SUPPORT FROM THE INDUSTRY PLANS FOR ANOTHER NATIONAL MEASUREMENT SERVICE FROM CERIDIAN CORPORATION'S ARBITRON COMPANY WERE ABANDONED IN SEPTEMBER NINETEEN NINETY TWO CONTAM HAS BEEN TRACKING WHAT IT SAYS ARE PROBLEMS WITH THE NIELSEN SYSTEM FOR THE LAST SEVERAL YEARS INCLUDING POSSIBLE UNDERSTATEMENT OF THE NUMBER OF YOUNG VIEWERS AND DECLINING COOPERATION RATES AMONG HOUSEHOLDS THAT HAVE BEEN IN THE NIELSEN SAMPLE FOR A LONG TIME WHEN YOU'RE DEALING WITH A MONOPOLY SERVICE DETERIORATES TO SOME DEGREE AND THE RATINGS DATA ARE NOT AS ACCURATE AS YOU'D LIKE THEM TO BE MR. CHRISANTHOPOULOUS SAID AT YESTERDAY'S NEWS CONFERENCE TO ANNOUNCE THE EXPERIMENT NIELSEN'S CURRENT SYSTEM BOTH UNDERSTATES AND OVERSTATES VIEWING SAID NICHOLAS SCHIAVONE AN N. B. C. VICE PRESIDENT AND CHAIRMAN OF CONTAM IT IS NOT GOOD ENOUGH FOR THE FUTURE WHEN MEASUREMENT WILL GET MORE COMPLICATED AS THE NUMBER OF CHANNELS MULTIPLIES THE NUMBER OF T. V. SETS GROWS AND SETS BECOME MORE PORTABLE JOHN DIMLING PRESIDENT AND CHIEF OPERATING OFFICER OF NIELSEN MEDIA RESEARCH THE NIELSEN UNIT THAT DOES THE RATINGS PLAYED DOWN THE SIGNIFICANCE OF THE POTENTIAL NEW RIVAL SAYING HE WELCOMED WHAT NIELSEN COULD LEARN FROM IT I'M SURE THE NETWORKS WANT IMPROVEMENTS MADE FASTER THAN WE OR ANYONE ELSE CAN MAKE THEM HE SAID BUT ADDED I DON'T VIEW THIS AS AN ATTACK ON NIELSEN HE SAID NIELSEN'S OWN GOAL IS TO IMPROVE THE WAY IT MEASURES TELEVISION I HOPE THEY COME UP WITH SOMETHING WE CAN USE HE SAID CONTAM HIRED STATISTICAL RESEARCH INCORPORATED WESTFIELD N. J. TO RUN THE TEST SYSTEM BASED ON A PROTOTYPE THAT HAS BEEN OPERATING SINCE JUNE NINETEEN NINETY THREE THE ESTIMATED TWENTY MILLION DOLLAR COST IS ABOUT EQUAL TO WHAT THE THREE NETWORKS CURRENTLY PAY NIELSEN ANNUALLY FOR RATINGS NIELSEN'S SYSTEM REQUIRES REWIRING THE TELEVISION SETS OF THE FOUR THOUSAND HOUSEHOLD SAMPLE USED TO DETERMINE THE RATINGS STATISTICAL RESEARCH EXPECTS THAT PARTICIPANTS IN ITS FIVE HUNDRED HOUSEHOLD TEST WILL BE MORE ACCEPTING OF ITS PENCIL THIN DEVICE WHICH ATTACHES TO THE T. V. SET WITHOUT ADDITIONAL WIRES THE DEVICE DETECTS WHETHER THE SET IS ON AND TO DETERMINE WHICH SHOW IS BEING WATCHED READS A UNIVERSAL PROGRAM CODE THAT WILL BE EMBEDDED IN THE SHOW'S SIGNAL THE DATA ARE THEN SENT VIA HOUSEHOLD CURRENT AND PHONE LINES TO STATISTICAL RESEARCH STATISTICAL RESEARCH USES A REMOTE CONTROL DEVICE TO DETERMINE WHO IS WATCHING THE T. V. SET NIELSEN'S SIMILAR SYSTEM KNOWN AS A PEOPLEMETER HAS BEEN CRITICIZED FOR BEING TOO COMPLICATED PARTICULARLY FOR CHILDREN STATISTICAL RESEARCH HAS BEEN EXPERIMENTING WITH HAVING THE DEVICE ACTUALLY TALK TO VIEWERS AND LETTING THEM TALK BACK INSTEAD OF PUSHING A BUTTON ONE NETWORK EXECUTIVE SAID CONTAM MAY ALSO DECIDE TO ABANDON ALTOGETHER MEASURING CHILDREN'S VIEWING BETSY FRANK A SENIOR VICE PRESIDENT AT ADVERTISING AGENCY SAATCHI AND SAATCHI SAID THE CONTAM EXPERIMENT IS A GOOD IDEA THAT WILL HELP THE ENTIRE INDUSTRY PREPARE FOR THE FUTURE QUOTE CLEARLY THE NETWORKS HAVE HAD GRIPES WITH NIELSEN FOR SOME TIME QUOTE SHE SAID QUOTE AND NOW THEY'RE PUTTING THEIR MONEY WHERE THEIR COLLECTIVE MOUTHS ARE QUOTE AS FOR THE TEST RATINGS BEING PRODUCED BY THE COMPANIES THAT WOULD SELL OFF OF THEM MS. FRANK SAID CERTAINLY THIS WILL MAKE PEOPLE QUESTION WHETHER THE INTERPRETATION OF THE NUMBERS IS SELF SERVING BUT THERE'S CONFIDENCE IN STATISTICAL RESEARCH AS BEING ETHICAL THE WHOLE INDUSTRY IS FEELING THE HOT BREATH OF THE FUTURE AS A STRAIN ON EXISTING TECHNOLOGY SAID JERRY DOMINUS A SENIOR VICE PRESIDENT AT W. P. P. GROUP'S J. WALTER THOMPSON AD AGENCY CLEARLY EVERYONE WILL WELCOME THE IMPROVEMENT BUT I JUST HOPE PEOPLE ARE PREPARED TO FUND IT HE SAID REFERRING TO A. G. B. WHICH FOLDED FOR LACK OF FINANCIAL SUPPORT FROM MOST OF THE INDUSTRY THE FEDERAL COMMUNICATIONS COMMISSION STREAMLINED ITS PROCEDURES FOR REGULATING MOBILE COMMUNICATIONS SERVICES AND APPROVED A PLAN TO LICENSE A NEW GENERATION OF WIRELESS DATA AND MESSAGE SERVICES THE NEW REGULATORY FRAMEWORK ESSENTIALLY REQUIRES UNIFORM REGULATION FOR QUOTE COMMERCIAL MOBILE RADIO SERVICES QUOTE WHICH INCLUDE ANY CELLULAR PHONE PAGING DISPATCH POCKET PHONE OR MOBILE DATA SERVICE THAT CONNECTS TO THE PUBLIC TELEPHONE NETWORK AND IS OFFERED TO THE PUBLIC FOR A PROFIT THE CHANGES WERE DESIGNED TO HELP THE AGENCY KEEP PACE WITH RAPID ADVANCES IN WIRELESS TECHNOLOGIES AND BRING ALL AMERICANS READY ACCESS TO THE INFORMATION HIGHWAY SAID RALPH HALLER WHO HEADS THE F. C. C.'S PRIVATE RADIO BUREAU THE CHANGES HE SAID REPLACE A PATCHWORK APPROACH THAT WAS BECOMING UNWORKABLE AS NEW TECHNOLOGIES BLURRED THE LINES BETWEEN VARIOUS COMMUNICATIONS SERVICES WIRELESS SERVICES CARRYING PHONE CALLS TWO WAY DATA AND VIDEO PROGRAMMING ARE EXPECTED TO BECOME AN IMPORTANT PART OF THE NATION'S FUTURE COMMUNICATIONS BECAUSE THEY WILL ENABLE COMPANIES TO AVOID HAVING TO LAY FIBER OPTIC OR WIRE LINES TO REACH REMOTE AREAS WHILE MOBILE SERVICES WILL BE SUBJECT TO A HOST OF F. C. C. REGULATIONS TO PROTECT CONSUMERS COMPANIES GENERALLY WON'T BE REQUIRED TO MAKE THEIR RATES PUBLIC BY FILING THEM WITH THE AGENCY THE AGENCY ALSO AGREED TO TAKE A NEW LOOK AT COMPETITION BETWEEN CELLULAR PHONE SERVICES THE AGENCY HAS LICENSED TWO CELLULAR CARRIERS IN EACH OF HUNDREDS OF LOCAL MARKETS ACROSS THE NATION AND WANTS TO MAKE SURE THE DUOPOLY APPROACH IS WORKING IN OTHER ACTION THE F. C. C. CARVED UP THE COUNTRY INTO SPECIFIC LICENSING TERRITORIES FOR A NEW CATEGORY OF SERVICES KNOWN AS NARROW BAND PERSONAL COMMUNICATIONS SERVICES THE SERVICES WHICH COULD BE OFFERED IN SELECT MARKETS WITHIN THE NEXT TWO YEARS USE A SLIM PORTION OF THE AIRWAVES THEY ARE LIKELY TO INCLUDE PAGING SERVICES THAT ALLOW THE RECIPIENT TO ACKNOWLEDGE A MESSAGE AND PERHAPS MOBILE ANSWERING MACHINES THE NEW LICENSES MAY BE THE FIRST ONES THE AGENCY PUTS UP FOR BID THIS SUMMER UNDER ITS NEW AUCTION AUTHORITY BUT FIRST THE F. C. C. MUST COME UP WITH RULES SPELLING OUT HOW IT WILL CONDUCT THE AUCTIONS THE F. C. C. ESTABLISHED ELEVEN NATIONWIDE LICENSES SIX MORE LICENSES IN EACH OF FIVE REGIONS SEVEN OTHERS IN MAJOR TRADING AREAS REGIONS DEFINED BY RAND MCNALLY AND TWO IN EACH BASIC TRADING AREA CITIES OR METROPOLITAN AREAS THE F. C. C. SAID IT WOULD ALLOW INDIVIDUAL COMPANIES TO OWN AS MANY AS THREE LICENSES THE COMMISSION ALSO AFFIRMED ITS DECISION TO GRANT MOBILE TELECOMMUNICATIONS TECHNOLOGIES INCORPORATED KNOWN AS MTEL ONE OF THE ELEVEN NATIONWIDE LICENSE BASED ON THE COMPANY'S PIONEERING TECHNOLOGY THE DOLLAR SURGED AGAINST THE MARK ON SPECULATION THE FEDERAL RESERVE IS BRACING FOR A RATE INCREASE AFTER EARLIER TAKING A DRUBBING ON A BUNDESBANK DECISION TO LEAVE RATES UNDISTURBED LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FOUR ONE FIVE MARKS UP FROM ONE POINT SEVEN THREE THREE SIX MARKS LATE WEDNESDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED EIGHT POINT ONE FOUR YEN UP FROM ONE HUNDRED SEVEN POINT EIGHT EIGHT YEN STERLING WAS TRADING AT ONE POINT FOUR EIGHT SEVEN OH DOLLARS DOWN FROM ONE POINT FOUR NINE FIVE FIVE DOLLARS ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED EIGHT POINT FOUR OH YEN AND AT ONE POINT SEVEN FOUR TWO THREE MARKS INITIALLY THE DOLLAR FLOUNDERED ON THE DECISION BY THE BUNDESBANK'S GOVERNING BOARD TO LEAVE ITS BENCHMARK DISCOUNT AND LOMBARD RATES UNCHANGED THE DOLLAR'S DECLINE WAS GIVEN FURTHER IMPETUS BY UNEXPECTEDLY BEARISH U. S. EMPLOYMENT STATISTICS SHOWING WEEKLY UNEMPLOYMENT CLAIMS HAD SPIRALED UPWARD BY FIFTY NINE THOUSAND TO FOUR HUNDRED TWENTY TWO THOUSAND FOR THE WEEK ENDED JANUARY TWENTY NINTH COMPARED WITH FORECASTS OF A RISE OF ONLY THIRTY ONE THOUSAND THE COMBINATION OF STEADY GERMAN INTEREST RATES AND BEARISH U. S. ECONOMIC NEWS PILOTED THE DOLLAR TO AN INTRADAY LOW OF ONE POINT SEVEN TWO EIGHT FIVE MARKS BUT THE U..S. CURRENCY'S SLIDE WAS REVERSED BY SPECULATION OVER THE FED'S DECISION NOT TO INTERVENE IN THE OPEN MARKETS DESPITE THE FACT THAT FED FUNDS WERE TRADING ABOVE THE PERCEIVED TARGET OF THREE PERCENT THE FEDERAL FUNDS RATE THE RATE WHICH COMMERCIAL BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS IS THE FED'S MOST IMPORTANT MONEY MARKET POLICY TOOL IN THE PAST THE FED HAS TENDED TO INTERVENE WHENEVER THE RATE WAS SIGNIFICANTLY ABOVE THREE PERCENT AND JUST PRIOR TO THE USUAL INTERVENTION PERIOD THE RATE STOOD AT THREE AND ONE EIGHTH PERCENT TO MANY TRADERS THE LACK OF INTERVENTION SUGGESTED AN EARLY RATE INCREASE IS LIKELY THEY ALSO NOTED THAT THE POLICY MAKING FEDERAL OPEN MARKETS COMMITTEE IS MEETING TODAY AND TOMORROW TO DISCUSS INTEREST RATE POLICY IN ADDITION ALAN GREENSPAN FED CHAIRMAN MADE CLEAR EARLIER THIS WEEK THAT HE WANTS SHORT TERM INTEREST RATES TO RISE IN A PRE EMPTIVE STRIKE AGAINST INFLATION BUT HE LEFT OPEN THE QUESTION AS TO WHEN AND HOW MUCH RATES WILL GO UP HOWEVER MANY TRADERS WERE QUICK TO DOUBT THE RATE INCREASE SPECULATION NOTING THAT THE FED'S LACK OF INTERVENTION WAS PROBABLY A TECHNICALITY QUOTE PEOPLE WERE READING TOO MUCH QUOTE INTO THE FED'S INACTION SAID RICK PORTER VICE PRESIDENT AT BANK BRUSSELS LAMBERT IN NEW YORK EVEN SO THE DOLLAR SHOT UP ALMOST TWO PFENNIGS IN TWO HOURS PIERCING A KEY RESISTANCE LEVEL OF ONE POINT SEVEN THREE EIGHT OH MARKS TO HIT AN INTRADAY HIGH OF ONE POINT SEVEN FOUR FIVE FIVE MARKS THE PERCEPTION WAS THAT THE U. S. MAY COME THROUGH ON INTEREST RATES WHERE THE GERMANS DIDN'T SAID ERIK DEPAUL A TRADER AT THE ROYAL BANK OF SCOTLAND BUT AS MANY TRADERS DECIDED THEY HAD OVERREACTED THE DOLLAR LATER RETREATED A BIT ON PROFIT TAKING ACCORDING TO MR. DEPAUL TRADERS HEARKENED BACK TO THE NEGATIVE WEEKLY JOBLESS NUMBERS WHICH BODED BADLY FOR THE FAR MORE IMPORTANT NONFARM PAYROLL DATA DUE OUT TOMORROW IT PUT A DOWNWARD BIAS ON HOW PEOPLE WILL BE READING THE PAYROLL NUMBER MR. DEPAUL SAID NOTING THAT A WEAK JANUARY EMPLOYMENT NUMBER WOULD LESSEN THE INFLATION DANGER AND THUS REDUCE THE NEED FOR AN INTEREST RATE INCREASE IN REGARD TO YOUR JANUARY NINETEENTH ASIDE QUOTE MR. WALSH'S METER QUOTE IF YOU THINK THAT SIXTY FIVE THOUSAND THREE HUNDRED SEVENTY ONE DOLLARS PER PAGE DIVIDED BY TWO HUNDRED FIFTY WORDS A PAGE EQUALS TWO THOUSAND SIX HUNDRED FIFTEEN DOLLARS A WORD YOU NEED A TUTOR IN REMEDIAL ARITHMETIC I SUGGEST YOU SEEK HELP FROM THAT EX CONVICT YOU ADMIRE SO GREATLY MICHAEL MILKEN HE IS ALLEGEDLY QUITE CRAFTY WITH NUMBERS LEXICON CORPORATION COMPLETED THE ACQUISITION OF A JAI ALAI FRONTON AND INTER TRACK WAGERING FACILITY LOCATED IN FORT PIERCE FLORIDA FROM WJA REALTY LIMITED MIAMI DOING BUSINESS UNDER THE NAME WORLD JAI ALAI INCORPORATED ALLIEDSIGNAL INCORPORATED REACHED A TEN YEAR AGREEMENT VALUED AT NEARLY ONE HUNDRED MILLION DOLLARS TO REPAIR AND OVERHAUL AUXILIARY POWER UNITS FOR SOUTHWEST AIRLINES OFFSHORE PIPELINES INCORPORATED SIGNED A MEMORANDUM OF UNDERSTANDING TO ACQUIRE A FORTY NINE PERCENT INTEREST IN A UNIT OF CLOSELY HELD GRUPO CONSORCIO DE FABRICACIONES Y. CONSTRUCCIONES OF MEXICO CITY TERMS WEREN'T DISCLOSED EXECUTONE INFORMATION SYSTEMS INCORPORATED WILL REPURCHASE UP TO ONE MILLION OF ITS COMMON SHARES BY THE END OF NINETEEN NINETY FOUR SAY WHAT YOU WILL ABOUT PRESIDENT AND MRS. CLINTON THEY DON'T LACK FOR BRASS THE COUPLE WHO APPOINTED A PROTEGEE AND FRIEND TO SUPERVISE MADISON GUARANTY S. AND L. IN LITTLE ROCK NOW WANT A CHUM OF THE FIRST LADY TO REGULATE AMERICAN BANKS DOES ANYONE ELSE FIND THIS ODD IN ARKANSAS BEVERLY BASSETT SCHAFFER WAS THE CLINTON APPOINTEE WHO GAVE MADISON A REGULATORY PASS INFORMING MRS. CLINTON WITH A QUOTE DEAR HILLARY QUOTE LETTER IN WASHINGTON RICKI TIGERT IS MR. CLINTON'S NOMINEE TO LEAD THE FEDERAL DEPOSIT INSURANCE CORPORATION TIME MAGAZINE HAS REPORTED THAT HILLARY'S FAVORITE ACTIVITY AT RENAISSANCE WEEKEND EACH YEAR IS HANGING OUT WITH FRIENDS INCLUDING F. D. I. C. NOMINEE RICKI TIGERT EVERY PRESIDENT APPOINTS PALS BUT THIS NOMINATION IS NOTABLE BECAUSE IT FITS A PATTERN OF CLINTON REGULATORY CRONYISM THAT PRODUCED WHITEWATER MADISON IN ARKANSAS AND IS NOW MIGRATING TO THE BELTWAY COMBINE THIS PATTERN WITH THE CLINTON TREASURY'S REMARKABLE PROPOSAL TO UNITE ALL U. S. BANK REGULATION UNDER ONE AGENCY THUS GRABBING POWER FROM THE INDEPENDENT FEDERAL RESERVE AND AT LEAST SOME QUESTIONS DESERVE TO BE ASKED FOR STARTERS WHAT'S GOING ON HERE PERHAPS MS. TIGERT WILL TURN OUT TO BE A TIGER OF INDEPENDENCE BUT THE BELTWAY ATTORNEY SOUNDED MORE LIKE A WHITE HOUSECAT AT HER SENATE CONFIRMATION HEARINGS ON TUESDAY NORTH CAROLINA'S LAUCH FAIRCLOTH AND NEW YORK'S AL D'AMATO GAVE HER SEVERAL CHANCES TO SAY SHE'D RECUSE HERSELF FROM ANY MATTER INVOLVING THE CLINTONS MS. TIGERT REFUSED TO RECUSE OFFERING LAWYER LIKE EVASIONS AND SHE WASN'T EVEN ASKED TOUGH QUESTIONS SUCH AS WHAT ROLE SHE PLAYED IN MONITORING B. C. C. I. DURING HER SEVEN YEARS AS A FEDERAL RESERVE LAWYER MS. TIGERT WAS ASSOCIATE GENERAL COUNSEL WHEN THAT CORRUPT BANKING EMPIRE INFILTRATED THE U. S. FINANCIAL SYSTEM MOREOVER MS. TIGERT WAS SLAVISH IN ENDORSING THE CLINTON ADMINISTRATION'S BANK REGULATORY HEIST THIS IS THE PROPOSAL TO CONSOLIDATE ALL REGULATORY POWERS INTO ONE NEW AGENCY OSTENSIBLY INDEPENDENT BUT IN PRACTICE BEHOLDEN TO TREASURY THE NEW BANKING CZAR WOULD IN EFFECT BE ANOTHER CLINTON PAL FROM THEIR OXFORD AND YALE DAYS EUGENE LUDWIG THE CURRENT COMPTROLLER OF THE CURRENCY THIS POWER GRAB IS BEING SOLD AS MORE REINVENTING GOVERNMENT AND SOME STREAMLINING IS DESIRABLE BUT MAYBE POLITICS ALSO EXPLAINS A LOT ONE BIG SUPPORTER IS SENATE BANKING CHAIRMAN DON RIEGLE WHO PERFECTED THE LINK BETWEEN POLITICS AND REGULATION WITH HIS EXERTIONS FOR CHARLIE KEATING MR. RIEGLE WHO DOESN'T DARE STAND FOR RE ELECTION THIS YEAR WANTS TO GO DOWN IN HISTORY FOR SOMETHING MORE THAN BEING CHARLIE'S ANGEL TWO FORMER RIEGLE AIDES ARE NOW PUSHING CONSOLIDATION FROM KEY POSITIONS AT TREASURY AND THE COMPTROLLER'S OFFICE THE TREASURY AIDE RICHARD CARNELL ACTUALLY WROTE MUCH OF THE BURDENSOME FINANCIAL REGULATION OF RECENT YEARS SO NOW HE IS FLACKING A PROPOSAL THAT WOULD IN EFFECT GIVE HIM MORE POWER ALL IN THE NAME OF EASING THE OVERREGULATION HE HELPED CREATE HE'S NOT SHORT OF BRASS EITHER HAVING A SINGLE ALL POWERFUL REGULATOR WOULD ALSO ENHANCE THE WELL OPPORTUNITIES FOR POLITICAL MEDIATION LAST WEEK MR. CARNELL EXULTED IN PUBLIC THAT QUOTE THE PROPOSAL WILL GIVE CONSUMER INTERESTS SOMETHING THEY HAVE NEVER HAD BEFORE A FEDERAL REGULATOR THAT TAKES THEM SERIOUSLY QUOTE PARSE THAT SENTENCE BY CONSUMER INTERESTS HE MEANS NOT JOE DEPOSITOR BUT INTEREST GROUPS AND NADER TYPE LOBBIES TRYING TO ALLOCATE BANK LENDING VIA POLITICS FEAR OF SUCH POWER IS ONE REASON BANKERS ARE RESISTING ALL OF THIS OR AT LEAST MOST OF THEM ARE ONE LAGGARD SO FAR IS THE AMERICAN BANKERS ASSOCIATION A. B. A. A FACT THAT HAS RAISED EYEBROWS BECAUSE OF THE PRESENCE OF CURT BRADBURY ON THE TWENTY THREE MEMBER A. B. A. BOARD MR. BRADBURY IS THE C. E. O. OF ARKANSAS'S WORTHEN BANKING CORPORATION WHICH LENT MR. CLINTON'S CAMPAIGN CASH AT A TIME OF NEED IN NINETEEN NINETY TWO WORTHEN HAS BEEN IN A SPAT WITH THE FED WHICH HAS BEEN TOUGHER ON WORTHEN THAN THE COMPTROLLER AND WOULD LOSE CLOUT UNDER THE CLINTON PROPOSAL DONALD OGILVIE THE A. B. A.'S MAN IN WASHINGTON SAYS MR. BRADBURY HASN'T DICTATED A. B. A. POLICY WHICH HE EXPECTS WILL BE DECIDED NEXT WEEK IF THE A. B. A. BLINKS EYEBROWS WILL STAY RAISED THE BIGGEST POLITICAL PLAY HERE HOWEVER IS THE SLAP AT THE FED ONE BELTWAY INSTITUTION THE CLINTON TEAM DOESN'T YET DOMINATE FED CHAIRMAN ALAN GREENSPAN AND HIS COLLEAGUES ARE FIGHTING THE RIEGLE CLINTON POWER GRAB AND IN UNUSUALLY BLUNT TERMS THIS ALONG WITH BANKER RESISTANCE MEANS CONGRESS PROBABLY WON'T GO ALONG UNLESS THAT IS MR. CLINTON CAN CHANGE THE FED AT LEAST THAT'S THE MESSAGE SENT BY FRANK NEWMAN A SENIOR TREASURY AIDE WHEN HE MR. CARNELL AND MR. LUDWIG MET LAST MONTH WITH THE EXECUTIVE COMMITTEE OF THE INDEPENDENT BANKERS ASSOCIATION OF AMERICA WHICH IS FIGHTING THE CLINTON PLAN MR. NEWMAN SAID THE ADMINISTRATION WILL GET THREE FED APPOINTMENTS IN THE COMING YEARS THE MESSAGE WAS IF WE DON'T GET YOU NOW WE'LL GET YOU LATER SAYS A WITNESS WITH FED VICE CHAIRMAN DAVID MULLINS'S SURPRISE DEPARTURE THIS WEEK THAT LATER COULD BE EVEN SOONER EVERY PRESIDENT NEEDS PALS IN HIGH PLACES BUT MAYBE NOT IN REGULATORY PLACES IF YOU'VE TAKEN ON AS MUCH WHITEWATER AS THIS PRESIDENT HAS IF MR. CLINTON IS GOING TO INSIST ON NAMING CRONIES AS THE NATION'S TOP FINANCIAL REGULATORS THEN MAYBE HE CAN AT LEAST STOP TRYING TO GIVE THEM ALL OF THE REGULATORY POWER PEOPLE MIGHT GET THE WRONG IDEA AFTER A TWO YEAR MARKETING ROMANCE EQUAL IS NO LONGER SWEET ON CHER NUTRASWEET THE MAKER OF EQUAL ASPARTAME SWEETENER IS EMBARKING ON A NEW ADVERTISING CAMPAIGN WITHOUT THE FORTY SEVEN YEAR OLD SINGER AND ACTRESS INSTEAD NEW COMMERCIALS WILL BEGIN AIRING DURING THE WINTER OLYMPICS ON C. B. S. WITH LAUREN HUTTON THE FIFTY YEAR OLD GAP TOOTHED FASHION MODEL NUTRASWEET FACES SEVERAL CHALLENGES AS IT AGGRESSIVELY MARKETS ITS BLUE PACKETS OF EQUAL THROUGH TELEVISION ADVERTISING ONE OF ITS RIVALS SWEET 'N LOW WHICH CONTAINS SACCHARIN PLANS A MAJOR AD BLITZ POSSIBLY BEGINNING IN APRIL FURTHERMORE NUTRASWEET'S PATENT ON ASPARTAME EXPIRED IN DECEMBER NINETEEN NINETY TWO RESULTING IN CHALLENGES TO EQUAL BY PRIVATE LABEL PRODUCTS CUMBERLAND PACKING THE BROOKLYN N. Y. MAKER OF SWEET 'N LOW IS SLOWLY ROLLING OUT NATIONALLY ITS OWN ASPARTAME BASED COMPETITOR CALLED NATRATASTE EQUAL'S NEW ADVERTISING COMES AS THE ARTIFICIAL SWEETENER CATEGORY TASTES A DROP IN SALES ACCORDING TO DATA SUPPLIED BY NIELSEN MARKETING RESEARCH EQUAL'S SUPERMARKET SALES DROPPED FOUR POINT EIGHT PERCENT TO ONE HUNDRED NINE POINT SEVEN MILLION DOLLARS IN THE FIFTY TWO WEEK PERIOD ENDED DECEMBER TWENTY FIFTH SUPERMARKET SALES FOR SWEET 'N LOW FELL THREE POINT TWO PERCENT TO SIXTY SIX POINT SEVEN MILLION DOLLARS BOTH COMPANIES SAY SWEET 'N LOW OUTSELLS EQUAL IN SUPERMARKETS ON A UNIT BASIS EQUAL WHICH COSTS AT LEAST DOUBLE THE PRICE OF SWEET 'N LOW OUTSELLS ITS PINK PACKAGED RIVAL IN DRUG STORES AND MASS MARKET OUTLETS IN BOTH DOLLAR SALES AND UNIT SALES ACCORDING TO NIELSEN AND THE TWO COMPANIES IT IS AGAINST THIS BACKDROP THAT EQUAL IS BREAKING ITS NEW ADS ALTHOUGH NUTRASWEET EXECUTIVES DECLINE TO COMMENT ON THE AD BUDGET OLYMPICS ADVERTISING TIME IS SO EXPENSIVE THAT THE BUDGET IS EXPECTED TO BE AN INCREASE OVER LAST YEAR IN THE JANUARY TO NOVEMBER PERIOD OF NINETEEN NINETY THREE EQUAL SPENT ELEVEN POINT THREE MILLION DOLLARS ON ADVERTISING ACCORDING TO COMPETITIVE MEDIA REPORTING REPLACING CHER WITH MS. HUTTON IS NOT WITHOUT RISKS FOR ONE CHER PROVED TO BE A POPULAR SPOKESWOMAN IN A SEPTEMBER SURVEY OF THREE THOUSAND PEOPLE BY VIDEO STORYBOARD TESTS CHER LEAPFROGGED TO THE NUMBER THREE POSITION OF TOP TELEVISION ENDORSERS EVEN THOUGH SHE HADN'T MADE THE LIST THE YEAR BEFORE QUOTE ORIGINALLY WE ENVISIONED A SERIES OF CELEBRITIES FOR OUR COMMERCIALS BUT THEN CHER CAME OUT OF THE GATE SO WELL THAT WE EXTENDED USING HER QUOTE SAYS TOM HALL CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT W. P. P. GROUP'S CHICAGO OFFICE OF OGILVY AND MATHER EQUAL'S AD AGENCY THE DECISION TO MOVE TO ANOTHER CELEBRITY AFTER TWO YEARS COINCIDED WITH CHER'S CHOICE TO DISCONTINUE SOME PRODUCT ENDORSEMENTS SAYS DEBBIE LALLA MANAGER OF EQUAL'S MARKETING WE WANT WOMEN WHO ARE KNOWN FOR LOOKING GREAT BY TAKING CARE OF THEMSELVES WE ALSO WANT WOMEN WHO ARE OUTSPOKEN AND VERY CREDIBLE SHE ADDS MARKETING EXPERTS SAY THAT USING MIDDLE AGED CELEBRITIES AS OPPOSED TO ACTRESSES IN THEIR TWENTIES ISN'T A FAULTY STRATEGY ALTHOUGH THEY MAY NOT APPEAL AS MUCH TO YOUNGER CONSUMERS A PERSONALITY LIKE LAUREN HUTTON SHOWS ENERGY AND VITALITY AND TIMELESSNESS SAYS LILLIAN MARESCH PRESIDENT OF GENERATION INSIGHTS A MARKETING CONSULTING FIRM IN MINNEAPOLIS SHE IS A WONDERFUL ICON WITH STAYING POWER AND WHILE MS. HUTTON MAY NOT COMMAND TOP OF MIND AWARENESS AMONG CONSUMERS IN THEIR TEENS OR TWENTIES MS. MARESCH SAYS THE MODEL HAS QUALITIES WITH STRENGTHS EQUAL'S FIRST AD WITH MS. HUTTON WHICH WILL AIR FEBRUARY SIXTEENTH ON THE WINTER OLYMPICS WILL BE SEEN ON SUBSEQUENT NIGHTS ON QUOTE SEINFELD QUOTE QUOTE MAD ABOUT YOU QUOTE QUOTE SISTERS QUOTE AND QUOTE ROSEANNE QUOTE AS WELL AS QUOTE LATE SHOW WITH DAVID LETTERMAN QUOTE AMONG OTHERS MS. HUTTON WILL APPEAR IN THREE COMMERCIALS THE SPOT SAID TO BE THE FAVORITE OF OGILVY AND NUTRASWEET SHOWS MS. HUTTON SCRATCHING HER CHEEK SAYING MY MOTHER LIKES TO TAKE CARE OF ALL HER DAUGHTERS AND ONE DAY I JUST GOT A BOX A BLUE BOX IN THE MAIL WITH A LITTLE NOTE THAT SAID DARLING USE THIS MR. HALL SAYS THE COMMERCIAL REFLECTS A TRUE STORY VIEWERS ARE THEN TOLD BY MS. HUTTON THAT SHE USES EQUAL WITH HER ESPRESSO TEA AND CEREAL SMILING HER TRADEMARK GRIN MS. HUTTON BLOWS A KISS THANKS MOM SHE SAYS IN ANOTHER SPOT SHE SAYS I PRETEND TO WORK OUT ALL THE TIME AND EAT ALL THE RIGHT THINGS BUT I DON'T QUOTE SHE GOES ON TO SAY THAT SHE DOES USE EQUAL HOWEVER THE COMMERCIALS REFLECT ANOTHER DIMENSION TO MS. HUTTON SAYS MR. HALL SHE IS OPEN FRIENDLY FUN AND HAS A TWINKLE IN HER EYE EQUAL IS JUST ANOTHER FACTOR IN THE HUTTON COMEBACK AFTER A QUIET PERIOD MS. HUTTON ADORNS J. CREW CATALOGS AND IN APRIL SHE SIGNED A NEW THREE YEAR CONTRACT WITH REVLON ONE ADVANTAGE MS. HUTTON HAS OVER CHER IS THAT SHE ISN'T REMOTELY CONTROVERSIAL WE THOUGHT ABOUT HAVING FUN WITH THE CHER SPOTS SAYS MARVIN E. EISENSTADT PRESIDENT OF CUMBERLAND PACKING WE TOYED WITH THE IDEA OF HIRING SONNY CHER'S ONE TIME HUSBAND AND SINGING PARTNER BUT FOR REASONS I DON'T REMEMBER IT DIDN'T WORK OUT ANDREW BALBIRER VICE PRESIDENT OF THE TABLETOP GROUP OF NUTRASWEET SAYS MORE CELEBRITIES ARE ON THE WAY ALTHOUGH HE DECLINES TO BE SPECIFIC THE PEOPLE WE USE WILL BE TIMELESS HE SAYS NOT FLASHES IN THE PAN ANY CHANCE A MALE CELEBRITY WILL MAKE IT INTO AN EQUAL AD PROVING THAT ENDORSERS ARE CREATED EQUAL QUOTE EQUAL IS A PRODUCT THAT APPEALS TO WOMEN SHOPPERS QUOTE SAYS MS. LALLA BUT THAT DOESN'T RULE OUT THE POSSIBILITY OF MEN ONE DAY FASHION DESIGNER DONNA KARAN AND CREATIVE BOUTIQUE ARNELL GROUP HAVE ENDED THEIR NINE YEAR RELATIONSHIP ACCORDING TO THE NEW YORK AGENCY ARNELL GROUP SAID IN A STATEMENT THAT DONNA KARAN ADVERTISING WOULD BE HANDLED BY THE CLIENT'S IN HOUSE CREATIVE SERVICES GROUP DONNA KARAN OFFICIALS DIDN'T RETURN CALLS SEEKING COMMENT ARNELL GROUP SAID IT WOULD CONTINUE WORKING FOR THE DESIGNER THROUGH THE SUMMER EXACT BILLINGS COULDN'T BE DETERMINED HOWEVER DONNA KARAN COMPANY SAID IN A REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THAT IT AND ITS LICENSEES PLANNED TO SPEND TWENTY FIVE MILLION DOLLARS ON ADVERTISING IN NINETEEN NINETY THREE THE S. E. C. REGISTRATION STATEMENT WAS FOR AN INITIAL PUBLIC OFFERING THAT THE COMPANY PLANNED LAST YEAR BUT LATER CALLED OFF INDUSTRY ESTIMATES PUT ACTUAL EXPENDITURES CLOSER TO FOURTEEN MILLION DOLLARS PETER ARNELL CHAIRMAN OF ARNELL GROUP CREATED HIGH PROFILE CAMPAIGNS FOR THE DESIGNER'S FASHION AND BEAUTY PRODUCTS LINES HIS AGENCY CAME UP WITH THE IDEA OF THE DKNY BRAND AND ALSO CREATED STRIKING PRINT ADS IN NINETEEN NINETY TWO FEATURING A GLAMOROUS MODEL IN THE ROLE OF U. S. PRESIDENT AN AGENCY GETS KNOWN BY ITS MOST VISIBLE WORK MR. ARNELL CONCEDED BUT ADDED WE BOTH DECIDED OUR BUSINESSES WEREN'T GOING IN THE SAME DIRECTION AS PART OF THE SPLIT MR. ARNELL SAID THE AGENCY'S TOKYO OFFICE A JOINT VENTURE WITH JAPANESE ADVERTISING GIANT DENTSU WOULD CLOSE NEON CHRYSLER AND B. B. D. O. A UNIT OF OMNICOM GROUP UNVEILED A POOL OF ADS FOR THE NEON SUBCOMPACT CAR AIMED AT THE SO CALLED GENERATION X. A MARKET PRIMARILY OF TREND CONSCIOUS BUYERS IN THEIR TWENTIES CHRYSLER SAID TWENTY PERCENT OF ITS FIFTY MILLION DOLLAR MARKETING BUDGET WILL BE SPENT ON NONTRADITIONAL MEDIA ADVERTISING THOSE EFFORTS INCLUDE AN AD IN A SAMPLE VIDEO GAME DISK FROM ELECTRONIC ENTERTAINMENT MAGAZINE AND A MUSIC VIDEO STARRING EX BEATLE PAUL MCCARTNEY AND SEVERAL CHRYSLER MODELS THAT IS INTENDED TO DISCOURAGE DRINKING AND DRIVING CAMBODIA INTERPUBLIC GROUP'S MCCANN ERICKSON SAID IT WILL OPEN AN OFFICE IN CAMBODIA UNDER AN EXCLUSIVE AGREEMENT WITH KHMER GENERAL SERVICES A CAMBODIAN TRADING COMPANY DUBBED KGS ADVERTISING IT IS MCCANN'S FIRST OFFICE IN INDOCHINA SEVERAL OTHER INTERNATIONAL NETWORKS ARE PREPARING TO SET UP SHOP IN VIETNAM BILL WHITE SIXTY FOUR YEARS OLD WHO RETIRED LAST YEAR AS CHAIRMAN OF MCCANN'S THAILAND OFFICE WILL BE RESPONSIBLE FOR THE OFFICE AGENCY SEARCH I. T. T. HARTFORD INSURANCE GROUP AN I. T. T. UNIT SAID IT HAS BEGUN A SEARCH FOR A NEW AD AGENCY TO REPLACE MCCAFFREY AND MCCALL NEW YORK ITS AGENCY OF TWENTY SEVEN YEARS MCCAFFREY WAS ABSORBED INTO SAATCHI AND SAATCHI'S BACKER SPIELVOGEL BATES NEW YORK EARLIER THIS WEEK A HARTFORD INSURANCE SPOKESMAN SAID THE COMPANY HAD DECIDED TO LOOK FOR A NEW AGENCY BEFORE LEARNING THAT MCCAFFREY WOULD BE ABSORBED BY BACKER BILLINGS ARE THREE MILLION DOLLARS TO FIVE MILLION DOLLARS HE SAID ACCOUNT BALLY'S HEALTH AND TENNIS CORPORATION A CHICAGO UNIT OF BALLY MANUFACTURING TAPPED THE CHICAGO OFFICE OF HAL RINEY AND PARTNERS FOR ITS ESTIMATED FIFTY MILLION DOLLAR ACCOUNT PREVIOUSLY AT SUISSAMILLER SANTA MONICA CALIFORNIA REAL ESTATE IS BACK ON THE SHOPPING LISTS OF BIG INSTITUTIONAL INVESTORS WITH PUBLIC AND CORPORATE PENSION FUNDS EXPECTING TO INCREASE THEIR PROPERTY HOLDINGS BY THIRTY SIX BILLION DOLLARS OR ABOUT FORTY PERCENT DURING THE NEXT THREE YEARS AFTER TWO YEARS OF CUTBACKS EVEN PENSION FUNDS THAT STILL HAVE LOSSES ON EXISTING REAL ESTATE INVESTMENTS ARE BITING THE BULLET AND PREPARING TO RE ENTER THE MARKET BUT THIS TIME AROUND THE FUNDS ARE AIMING TO BE SMARTER BUYERS QUOTE SO MANY PENSION FUNDS FELT SO HELPLESS SITTING BACK WATCHING THEIR REAL ESTATE ASSETS DETERIORATE IN THE LATE NINETEEN EIGHTIES THAT THEY'VE STARTED TAKING A MUCH MORE PROACTIVE APPROACH QUOTE SAYS KEVIN LYNCH WHO ADVISES PENSION PLANS ON REAL ESTATE FOR CLEVELAND BASED TOWNSEND GROUP THE FUNDS ARE PARTICULARLY LEERY OF GETTING BURNED AGAIN BY HIRED MANAGERS IN PRIVATE INVESTMENT POOLS KNOWN AS COMMINGLED FUNDS AS A RESULT THEY'RE TIGHTENING CONTROLS ON OUTSIDE REAL ESTATE ADVISERS AND INSISTING ON CLEAR STRATEGIES FOR EXITING INVESTMENTS SOME BIG PENSION PLANS ARE ALSO EARMARKING BIG BUCKS FOR REAL ESTATE INVESTMENT TRUSTS WHICH TRADE LIKE STOCKS ON MAJOR EXCHANGES AFTER THE PAST DECADE'S BUYING BINGE PENSION PLANS NOW HAVE SOME FIFTY BILLION DOLLARS OR ABOUT HALF THEIR TOTAL REAL ESTATE HOLDINGS IN COMMINGLED FUNDS SPONSORED BY INSURANCE COMPANIES AND REAL ESTATE ADVISORY FIRMS THE SPONSORS PROMISED THE FUNDS COULD CASH IN THEIR HOLDINGS AT ANY TIME BUT WHEN THE COMMERCIAL REAL ESTATE MARKET STARTED COLLAPSING AFTER NINETEEN EIGHTY SEVEN SO MANY INVESTORS RUSHED TO EXIT AT ONCE THAT FUND SPONSORS COULDN'T COMPLY HUNDREDS OF MILLIONS OF DOLLARS IN REDEMPTION REQUESTS ARE STILL OUTSTANDING DESPITE SUCH BRUISING EXPERIENCES PENSION FUNDS TODAY FIND THAT REAL ESTATE'S FUNDAMENTALS ARE TOO ALLURING TO RESIST FOR INSTANCE AT TODAY'S DEPRESSED PRICES MANY PROPERTIES OFFER CASH ON CASH YIELDS OF SEVEN PERCENT OR MORE IN OTHER WORDS THE RENTS AND OTHER INCOME GENERATED BY THE PROPERTIES NET OF EXPENSES AND OTHER ADJUSTMENTS AMOUNT TO AT LEAST SEVEN PERCENT OF THE PURCHASE PRICE A HIGHER YIELD THAN MANY LONG TERM CORPORATE BONDS OFFER TODAY WHAT'S MORE WITH PROPERTY PRICES ALREADY STARTING TO RECOVER IN SOME AREAS TOTAL RETURNS ON REAL ESTATE MIGHT WELL BE EVEN HIGHER IN THE LONG RUN AT A TIME WHEN STOCKS ARE AT RECORD HIGHS AND BOND YIELDS AT LONG TERM LOWS FEW ASSETS LOOK AS GOOD AS PROPERTY TO PENSION STRATEGISTS TODAY BY NINETEEN NINETY SIX PUBLIC RETIREMENT FUNDS EXPECT TO BOOST THEIR HOLDINGS TO SEVENTY BILLION DOLLARS OR FOUR POINT SEVEN PERCENT OF TOTAL ASSETS FROM FORTY SIX BILLION DOLLARS OR THREE POINT EIGHT PERCENT OF ASSETS TODAY ACCORDING TO A RECENT SURVEY BY GREENWICH ASSOCIATES A PENSION CONSULTANT BASED IN GREENWICH CONNECTICUT CORPORATE PLANS MEANWHILE SEE HOLDINGS RISING TO FIFTY FIVE BILLION DOLLARS OR THREE POINT EIGHT PERCENT OF ASSETS FROM FORTY THREE BILLION DOLLARS OR THREE POINT FIVE PERCENT CURRENTLY AMONG LARGE SOPHISTICATED PLANS THE MOST POPULAR ROUTE IS STILL TO BUY REAL ESTATE DIRECTLY BECAUSE THAT GIVES THE GREATEST CONTROL OVER THOSE WHO MANAGE PROPERTIES ON A DAY TO DAY BASIS UNFORTUNATELY SMALL AND MIDSIZE PENSION FUNDS TYPICALLY LACK THE MEANS TO BUILD AND MANAGE DIVERSIFIED REAL ESTATE PORTFOLIOS ON THEIR OWN BUT TO AVOID BEING LUMPED TOGETHER WITH SCORES OF OTHER INVESTORS IN COMMINGLED FUNDS THEY'RE OPTING TO CO INVEST WITH SMALL GROUPS OF LIKE MINDED PENSION FUNDS SUCH ARRANGEMENTS GIVE EACH INVESTOR MORE CLOUT AND MAKE IT EASIER FOR INDIVIDUAL FUNDS TO TAKE ACTION AGAINST HIRED MANAGERS I THINK THAT CO INVESTING IS THE WAY OF THE FUTURE SAYS HOWARD HARPSTER DIRECTOR OF PENSION INVESTMENTS AT CLEVELAND BASED B. P. AMERICA INCORPORATED IF YOU DON'T LIKE MANAGEMENT YOU CAN CAN THEM IT ONLY TAKES THREE OR FOUR PEOPLE TO DO IT IN A COMMINGLED FUND IT TAKES A HUNDRED SO IT NEVER HAPPENED B. P. AMERICA HAS TEAMED UP WITH FOUR OTHER FUNDS IN A ONE HUNDRED SEVENTY FIVE MILLION DOLLAR LIMITED PARTNERSHIP TO INVEST IN OFFICE RETAIL AND INDUSTRIAL SPACE IN THE UNITED KINGDOM AND EUROPE MORE RECENTLY IT JOINED A STATE FUND WHICH WASN'T IDENTIFIED TO BUY A NINE MILLION DOLLAR APARTMENT COMPLEX NEAR RALEIGH N. C. THE COLORADO PUBLIC EMPLOYEES RETIREMENT ASSOCIATION HAS SIMILARLY JOINED FORCES WITH THE SCHOOL EMPLOYEES RETIREMENT SYSTEM OF OHIO THE ALASKA PERMANENT FUND AND TWO OTHER FUNDS TO BUY RESIDENTIAL PROPERTIES THE GROUP PURCHASED A NINETY PERCENT INTEREST IN TWELVE APARTMENT PROJECTS OWNED BY PHOENIX HOME LIFE MUTUAL INSURANCE COMPANY OF HARTFORD CONNECTICUT PAYING ONE HUNDRED EIGHT MILLION DOLLARS FOR THE STAKE PHOENIX WILL MANAGE THE PROPERTIES AND RETAIN THE REMAINING TEN PERCENT OWNERSHIP STAKE COLORADO AND ITS CO INVESTORS HAVE THE RIGHT TO FIRE PHOENIX HOME LIFE AS MANAGER IN A FAIRLY SHORT PERIOD OF TIME WITHOUT A LOT OF NOTICE AND WITHOUT LITIGATION SAYS SOL RASO COLORADO'S DIRECTOR OF REAL ESTATE QUOTE WE HAVE ABSOLUTE CONTROL BUT WE DON'T HAVE TO GET INVOLVED IN MICROMANAGEMENT QUOTE MEANWHILE WALL STREET INVESTMENT BANKERS NOT WANTING TO MISS OUT ON THE ACTION ARE TOUTING SECURITIZED PROPERTY IN THE FORM OF R. E. I. T.S SO FAR THE FUNDS HAVEN'T BEEN AVID BUYERS BECAUSE THEY WORRY THAT SUCH INVESTMENTS WOULD TOO CLOSELY TRACK THE REST OF THE STOCK MARKET AND THUS DEFEAT THE PURPOSE OF BUYING REAL ESTATE BUT THE FUNDS ARE WARMING TO THE IDEA ON JANUARY EIGHTEENTH FOR INSTANCE DIRECTORS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM THE NATION'S LARGEST PENSION PLAN FOR STATE EMPLOYEES DECIDED THAT R. E. I. T.S COULD CONSTITUTE UP TO TEN PERCENT OF THE FUND'S REAL ESTATE HOLDINGS DURING THE NEXT TWO YEARS CALPERS INTENDS TO BUY ABOUT TWO HUNDRED FIFTY MILLION DOLLARS OF PUBLICLY TRADED R. E. I. T.S REAL ESTATE ADVISERS THAT TRADITIONALLY MANAGED THE FUNDS' PROPERTY INVESTMENTS ARE ALSO JUMPING ON THE R. E. I. T. BANDWAGON FOR INSTANCE ALDRIDGE EASTMAN AND WALTCH OF BOSTON AND DIMENSIONAL FUND ADVISORS INCORPORATED OF SANTA MONICA CALIFORNIA RECENTLY LAUNCHED A REAL ESTATE INDEX FUND TO INVEST IN PUBLICLY TRADED REAL ESTATE COMPANIES WHICH SO FAR HAS ATTRACTED THIRTY MILLION DOLLARS THE FUND WILL TRADE LIKE A NORMAL MUTUAL FUND AND IS DESIGNED TO TRACK THE RETURN OF THE ENTIRE U. S. REAL ESTATE SECTOR OTHER ADVISERS SUCH AS SAN FRANCISCO BASED R. R. E. E. F. FUNDS HAVE PUT TOGETHER PRIVATE R. E. I. T.S WHICH THEY MANAGE ON BEHALF OF SMALL GROUPS OF INSTITUTIONAL SHAREHOLDERS ALTHOUGH PRIVATE R. E. I. T.S AREN'T EXCHANGE TRADED THEY'RE SUPPOSED TO GIVE INVESTORS MORE LIQUIDITY THAN COMMINGLED FUNDS AND MORE CONTROL OVER MANAGERS MEANTIME THERE ARE TWO SEPARATE EFFORTS AFOOT TO LAUNCH A SECONDARY MARKET FOR COMMINGLED FUND SHARES LIQUIDITY FINANCIAL GROUP OF EMERYVILLE CALIFORNIA AND ATLANTA BASED SAYLOR PROPERTY CAPITAL HAVE TEAMED UP IN A VENTURE CALLED SMART WHILE BLAKE EAGLE CHAIRMAN OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S CENTER FOR REAL ESTATE IN CAMBRIDGE MASSACHUSETTS AND A GROUP OF INDUSTRY VETERANS ARE LAUNCHING A NONPROFIT ELECTRONIC NETWORK CALLED CLEARINGHOUSE WHERE PENSION FUNDS CAN TRADE THEIR SHARES EAGLE HARDWARE AND GARDEN INCORPORATED AN AMENDED OFFERING OF SEVENTY FIVE MILLION DOLLARS OF CONVERTIBLE SUBORDINATED DEBENTURES INSTEAD OF ONE HUNDRED MILLION DOLLARS AS REPORTED EARLIER VIA ALEXANDER BROWN AND SONS INCORPORATED NN BALL AND ROLLER INCORPORATED AN INITIAL OFFERING OF TWO MILLION COMMON SHARES WITH AN OVER ALLOTMENT OPTION FOR THREE HUNDRED THOUSAND ADDITIONAL SHARES VIA MCDONALD AND COMPANY SECURITIES INCORPORATED AND WHEAT FIRST BUTCHER AND SINGER CAPITAL MARKETS SAFETY FIRST INCORPORATED AN OFFERING OF ONE POINT TWO MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INCORPORATED DEAN WITTER REYNOLDS INCORPORATED AND ADVEST INCORPORATED EVERY OTHER TUESDAY IN THE BASEMENT OF AN OLD LABORATORY BUILDING HERE HOPE SWEET SEARCHES FOR DEVIANTS CLAD IN A LAB COAT HER HAIR PULLED BACK IN A KNOT MS. SWEET MOVES BRISKLY FROM TABLE TO TABLE PAUSING AT EACH TO PLUCK WRIGGLING MICE FROM PAPER BUCKETS OF THE TWENTY EXAMINED THIS WEEK CULLED FROM A BREEDING COLONY OF HALF A MILLION NINETEEN ARE REJECTED THEY ARE TOO NORMAL BUT AS THE LID IS POPPED ON THE TWENTIETH CONTAINER A MURMUR RIPPLES THROUGH A GROUP OF LAB WORKERS LOOKING ON QUOTE WOW QUOTE MS. SWEET EXCLAIMS THESE ARE HEAD BOBBERS ALL RIGHT POSSIBLY RELATED SHE DECIDES TO ANOTHER STRAIN CALLED THE CIRCLING MUTANTS FOUR TINY MICE MOVE THEIR HEADS UP AND DOWN AS IF LISTENING TO A RHYTHM ONLY THEY CAN HEAR EXPERIMENTS ON WEIRD AND AFFLICTED MICE ARE CONSIDERED VITAL TO MEDICAL RESEARCH AND NOBODY HAS WEIRDER MICE THAN MS. SWEET'S EMPLOYER THE JACKSON LABORATORY PHONE EIGHT HUNDRED TO FOUR HUNDRED TWENTY TWO MICE OVER FIFTY YEARS IN THE BUSINESS JACKSON SCIENTISTS HAVE BRED AND SOLD MILLIONS OF FURRY MUTANTS DIABETIC MICE MICE WITH GOITER LUNG CANCER OR HIGH BLOOD PRESSURE NERVOUS MICE FAT MICE MICE WITH PSORIASIS SPONTANEOUS MUTATIONS INCLUDING THE ONES FOUND BY MS. SWEET'S PRACTICED EYE HAVE OFTEN PLAYED IMPORTANT ROLES IN UNDERSTANDING DISEASE IN HUMAN BEINGS NOW BIOTECHNOLOGY IS MAKING THE LABORATORY MOUSE STILL MORE USEFUL BY INJECTING GENES INTO MICE EMBRYOS OR BY KNOCKING GENES OUT SCIENTISTS CAN CREATE CUSTOM MUTANTS WITH HUMANOID AILMENTS NEW GOVERNMENT REGULATIONS AND ANIMAL RIGHTS ACTIVISTS MEANWHILE HAVE MADE RESEARCH ON RABBITS DOGS AND MONKEYS MORE OF A HEADACHE ALL THE EXCITEMENT LED THE HARVARD HEALTH LETTER TO CALL THE NINETEEN NINETIES THE DECADE OF THE MOUSE GRANTS AND DONATIONS TO JACKSON ARE ON THE RISE AFTER YEARS OF BARELY SQUEAKING BY THE NATIONAL INSTITUTES OF HEALTH RECENTLY GAVE MONEY TO THE NONPROFIT INSTITUTION TO HELP ESTABLISH A NATIONAL CENTER FOR BREEDING GENETICALLY ENGINEERED MICE EMPLOYEES TAKE PARTICULAR PRIDE IN FOILING THE FORCES OF NATURAL SELECTION THIS IS MOUSE MECCA SAYS PRISCILLA SKIPPY LANE SEVENTY TWO WHO HAS BEEN CATALOGING ODD MICE FOR FORTY TWO YEARS WE'VE GOT THE BEST SELECTION OF MUTANTS IN THE BUSINESS IN A NOON MEETING OVER SANDWICHES IN A CONFERENCE ROOM WITH A VIEW OF ACADIA NATIONAL PARK TALK TURNS TO THE LACK OF COOPERATION CREEPING INTO THE WORLD OF MOUSE RESEARCH AS MORE COMPANIES SEEK TO PROFIT FROM PATENTED MICE THESE BIOTECH COMPANIES ALL WANT TO BE THE FIRST TO COME UP WITH THE MILLION DOLLAR MOUSE COMPLAINS MURIEL DAVISSON A SENIOR SCIENTIST AT JACKSON THEY LIKE TO CHAT ABOUT MOUSY FREAKS OF NATURE QUOTE THE BEST ONE I EVER SAW WAS A FIVE LEGGED MOUSE A FEW YEARS BACK QUOTE SAYS CLAUDIA BASSO WHO HAS BEEN REARING RODENTS HERE FOR THIRTEEN YEARS IT HAD FEELING IN THE LEG AND EVERYTHING THAT'S NOTHING COUNTERS ANOTHER STAFF MEMBER WE STILL HAVE A SIX LEGGED SKELETON NEITHER MOUSE WAS OF MUCH MEDICAL INTEREST HOWEVER AND THEY DIDN'T REPRODUCE SEARCHING FOR MUTANTS WITH GENETIC DEFECTS WORTH STUDYING IS A LITTLE LIKE GOLD MINING YOU NEVER KNOW WHEN YOU'LL FIND SOMETHING VALUABLE MS. DAVISSON SAYS THE LAB SELLS NEARLY TWO MILLION MICE A YEAR BRINGING IN TWENTY MILLION DOLLARS AND ENGAGING THE EFFORTS OF TWO HUNDRED OF THE LAB'S FIVE HUNDRED SIXTY WORKERS THREE TIMES A WEEK EIGHTEEN WHEELER TRUCKS FERRY THOUSANDS OF LIVE MICE TO BOSTON'S AIRPORT FOR SHIPMENT AROUND THE WORLD THESE MICE SELL FOR AS LITTLE AS EIGHT DOLLARS APIECE AS MUCH AS SEVENTY TWO DOLLARS AND EIGHTY CENTS FOR A BREEDING PAIR JACKSON IS THE MOUSE GENETICS CAPITAL OF THE WORLD SAYS MELVIN BALK SCIENTIFIC DIRECTOR AT CHARLES RIVER LABORATORIES INCORPORATED WILMINGTON MASSACHUSETTS PHONE EIGHT HUNDRED LAB RATS WHICH IS JACKSON'S LARGEST FOR PROFIT COMPETITOR CHARLES RIVER ALSO STOCKS MANY OF THE HOT NEW GENETICALLY ENGINEERED STRAINS INCLUDING ONCOMOUSE WHICH IS DESIGNED TO CONTRACT CANCER MICE MUTANTS GIVE US A WINDOW ON THE UNKNOWN SAYS JACKSON LAB DIRECTOR KENNETH PAIGEN CONSIDER STARGAZER WHOSE TRANCE LIKE SKYWARD STARE WAS FIRST SEEN IN NINETEEN EIGHTY FIVE IN A SINGLE MALE IN JACKSON'S COLONY WHEN THAT MOUSE WAS STUDIED WITH TINY ELECTROENCEPHALOGRAPH WIRES TAPED TO HIS HEAD HE BECAME AN EXPERIMENTAL MODEL FOR STUDYING THE ROLE OF DEFECTIVE GENES IN CERTAIN CASES OF EPILEPSY STARGAZER QUOTE WAS MY FIRST DEVIANT QUOTE MS. DAVISSON EXPLAINS HER CRAMPED OFFICE IS FILLED WITH TINY STUFFED MICE MOUSE ART A MOUSE LETTER OPENER PEOPLE GIVE THEM TO ME SHE SAYS WITH A SIGH SERENDIPITY HAS PLAYED A ROLE IN MANY MICE DISCOVERIES IN NINETEEN FORTY SIX A RESEARCHER WALKED INTO A ROOM HERE IDLY JINGLING HIS KEYS AND WAS STARTLED BY A COMMOTION IN ONE OF THE MOUSE CAGES LOOKING INTO IT FURTHER HE IDENTIFIED AND BEGAN BREEDING A NEW STRAIN WITH A HEREDITARY SEIZURE DISORDER TRIGGERED BY SOUND OVER THE YEARS PROMISING MUTANTS HAVE INCLUDED THE NUDE MOUSE A HAIRLESS VARIETY THAT USUALLY IS BORN WITHOUT A THYMUS GIVING IT SEVERE IMMUNE DEFICIENCIES USEFUL TO AIDS RESEARCHERS AN INBRED COUSIN THE STREAKER HAS A THYMUS BUT RELIABLY DEVELOPS THYMUS LYMPHOMAS THE SHAKER HAS A NEUROLOGICAL DEFECT AS DOES ITS COUSIN THE WALTZER WHICH HAS A MUTATION AFFECTING ITS INNER EAR AND SENSE OF BALANCE ANOTHER MORE RECENT MOUSE IS FLAKY THE POOR FELLOW SEEMS TO HAVE A BAD CASE OF DANDRUFF WHICH IS BEING EXPLORED AS A MODEL FOR PSORIASIS ONCE RESEARCHERS HAVE DECIDED THAT A MOUSE IS WORTHY OF FURTHER STUDY THE STOCK IS BRED TO STRENGTHEN THE CHARACTERISTIC THAT FREQUENTLY INVOLVES INBREEDING WITH LITTERMATES FOR SEVERAL GENERATIONS WITH SO MANY MICE SCURRYING ABOUT ONE MIGHT WONDER DOES ANYBODY GET ATTACHED TO THEM NO THEY DON'T REALLY MAKE GOOD PETS MS. LANE SAYS RATS ARE BETTER THEY'RE SMARTER COST CONSCIOUS COMPANIES MANY OF WHICH PAID HUGE SUMS IN THE NINETEEN EIGHTIES TO JURY CONSULTANTS IN HIGH STAKES CASES ARE STARTING TO INSIST ON MORE OF A NO FRILLS APPROACH TO JURY PICKING IT'S NOT THAT JURY CONSULTING HASN'T WORKED IN MANY MAJOR BUSINESS CASES AND HIGH PROFILE CRIMINAL PROSECUTIONS USING PSYCHOLOGISTS AND SOCIOLOGISTS TO PICK JURIES AND THEN PREDICT HOW JURORS ARE LIKELY TO REACT TO THE EVIDENCE HAS BECOME AS ROUTINE AS TAKING A DEPOSITION BUT IN RECENT YEARS THE FIELD HAS LOST MUCH OF ITS MYSTIQUE AS LAWYERS HAVE BECOME MORE ACCUSTOMED TO JURY CONSULTING THEY ALSO HAVE LEARNED THAT THEY DON'T NECESSARILY NEED EVERYTHING THAT IS IN A CONSULTANT'S BAG OF TRICKS AND LIKE ALL OTHER ASPECTS OF LITIGATION JURY CONSULTING HAS RAISED INTENSE CONCERNS ABOUT COST QUOTE EVERYBODY IN THE FIELD IS AWARE OF THE PRESSURES THAT ARE ON THE LAW FIRMS TO CUT COSTS QUOTE SAYS BETH BONORA PRESIDENT OF THE OAKLAND CALIFORNIA BRANCH OF THE NATIONAL JURY PROJECT A TRIAL CONSULTING FIRM THEY WANT MORE FOR LESS THAT APPROACH IS A FAR CRY FROM THE HONEYMOON ATMOSPHERE OF THE MID NINETEEN EIGHTIES WHEN JURY CONSULTING FIRST WAS EMBRACED IN A BIG WAY BY COMMERCIAL LITIGATORS JURY CONSULTING ENABLED COMPANIES TO GLEAN HOW JURORS WERE LIKELY TO REACT TO DEFENSE THEORIES TO WITNESSES TO VISUAL AIDS OF ANY COLOR OR DIMENSION EVEN TO THE LANGUAGE USED IN A CLOSING ARGUMENT BECAUSE THE PROCESS SEEMED MYSTERIOUS EVEN MAGICAL LAWYERS FOR COMPANIES WERE HARD PRESSED TO BARGAIN OVER THE DETAILS OF A WORK PROPOSAL THAT COST FIVE HUNDRED THOUSAND DOLLARS OR MORE LAWYERS' WILLINGNESS TO PAY NEARLY ANY ASKING PRICE ALSO WAS LINKED TO THE STAKES INVOLVED IF A CONSULTANT MIGHT HELP WIN A BILLION DOLLAR CASE IT SEEMED TANTAMOUNT TO MALPRACTICE NOT TO TAKE ADVANTAGE OF THE SERVICE TODAY THOUGH JURY CONSULTANTS HAVE SUCCEEDED IN EDUCATING LITIGATORS ABOUT THE FIELD LAWYERS FOR COMPANIES KNOW THAT A SHADOW JURY SITS THROUGH THE TRIAL AND REPORTS DAILY ON ITS IMPRESSIONS SO THAT LAWYERS CAN GET A SENSE OF WHAT THE REAL JURY MAY BE THINKING BUT THEY ALSO KNOW THAT SHADOW JURIES OFTEN AREN'T WORTH THE EXPENSE THEY KNOW THAT PRE TESTING THE CASE BEFORE MULTIPLE GROUPS OF MOCK JURORS MAY BE SLIGHTLY MORE USEFUL THAN PERFORMING JUST A COUPLE OF TESTS BUT LAWYERS FREQUENTLY FIND THAT ONE OR TWO FOCUS GROUPS ARE ENOUGH AFTER YEARS OF HIRING JURY CONSULTANTS I'M A MORE COMPETENT SOPHISTICATED PURCHASER OF THOSE SERVICES TODAY SIMPLY BECAUSE OF MY EXPERIENCE SAYS THOMAS HEIDEN A DETROIT LAWYER I KNOW WHAT TO EXPECT FOR THE MONEY NO FRILLS VERSIONS OF JURY RESEARCH DRAW ON SMALLER SAMPLE SIZES AND PROVIDE LESS ANALYSIS THAN THE MORE EXPENSIVE PRODUCTS JOSEPH RICE OF JURY RESEARCH INSTITUTE IN WALNUT CREEK CALIFORNIA SAYS HIS TEN YEAR OLD FIRM NOW OFFERS QUOTE AN A LA CARTE MENU QUOTE OF INDIVIDUAL SERVICES WE DON'T COME IN AND SAY YOU NEED A ONE HUNDRED THOUSAND DOLLAR PROPOSAL MR. RICE ADDS A SIMPLE FOCUS GROUP STARTS AT ABOUT FIVE THOUSAND DOLLARS JURYTHINK A SMALL MINNEAPOLIS FIRM THAT BEGAN LAST YEAR SAYS THAT FOR TEN THOUSAND DOLLARS IT WILL PUT TOGETHER A SURROGATE JURY TO HEAR A CASE BEFORE THE ACTUAL TRIAL NOT EVERYONE IS CONVINCED HOWEVER THAT THE LESS EXPENSIVE ALTERNATIVES DO MUCH FOR CLIENTS DONALD VINSON ONE OF THE EARLY LEADERS IN THE FIELD AND NOW HEAD OF DECISIONQUEST A JURY CONSULTING FIRM IN LOS ANGELES SAYS CLIENTS ARE PAYING FOR ACCURACY AND THAT THE LESS EXPENSIVE CONSULTING SERVICES CAN'T OFFER THE INSIGHT THAT MORE COMPREHENSIVE STUDIES PROVIDE INTO JURORS' MINDS IT'S NOT ONLY COSTS EVEN MORE IMPORTANT YOU'VE GOT TO DELIVER VALUE TO YOUR CLIENTS HE SAYS FOCUS GROUPS ARE REALLY IN VOGUE TODAY BECAUSE THEY ARE CHEAP AND EASY ANY DIMWIT CAN RUN A FOCUS GROUP MR. VINSON'S OWN FIRM HOWEVER HAS SOME SAVINGS TO OFFER TOO HE SAYS THAT IMPROVEMENTS IN TECHNOLOGY HAVE BROUGHT DOWN THE COST OF THE RESEARCH HIS FIRM PROVIDES AS WELL AS OF THE ELECTRONIC THREE DIMENSIONAL GRAPHICS IT PREPARES FOR USE AT TRIAL QUOTE VERY FEW JURY CONSULTANTS CAN COME IN AND DO ANY MEANINGFUL WORK FOR LESS THAN FIFTY THOUSAND OR ONE HUNDRED THOUSAND BUCKS QUOTE SAYS ROBERT ZEAVIN A LOS ANGELES LAWYER WHO OFTEN USES JURY CONSULTANTS MR. ZEAVIN SAYS THAT IN A RECENT TRIAL OVER ENVIRONMENTAL CLAIMS HE NOW WISHES HE HAD SPENT AN ADDITIONAL FIFTY THOUSAND DOLLARS ON JURY CONSULTING A MOCK JURY WAS USED IN THE CASE TO EVALUATE REACTIONS TO OPENING STATEMENTS BUT MR. ZEAVIN SAYS A MORE COMPREHENSIVE STUDY MIGHT HAVE HELPED EVALUATE HOW THE JURORS WOULD REACT TO A COMPLICATED SPECIAL VERDICT FORM THAT WAS USED STILL BECAUSE OF HEIGHTENED CONCERN ABOUT COSTS THE CLIENT MIGHT NOT HAVE BEEN WILLING TO PAY FOR THE EXTRA WORK MR. ZEAVIN SAYS IN HOPES OF ATTRACTING NEW CUSTOMERS AS PRICES DECLINE SOME JURY CONSULTANTS ARE TEAMING UP WITH LARGER MORE DIVERSE COMPANIES SUCH AS ACCOUNTING FIRMS AND TECHNOLOGY MANUFACTURERS WHICH OFFER THEIR OWN TRIAL SERVICES AND PRODUCTS LOS ANGELES BASED LITIGATION SCIENCES INCORPORATED FORMERLY A UNIT OF ADVERTISING GIANT SAATCHI AND SAATCHI LAST MONTH WAS ACQUIRED BY QUIXOTE CORPORATION WHICH PRODUCES TRIAL GRAPHICS AND HIGH TECH DATA PRODUCTS FOR LAWYERS DECISIONQUEST HAS SOLD A STAKE TO ACCOUNTING FIRM PRICE WATERHOUSE KNOWN FOR ITS EXPERT WITNESS AND FINANCIAL ANALYSIS SERVICES FOR LITIGATION AND FTI CORPORATION AN ANNAPOLIS MARYLAND JURY CONSULTING AND ENGINEERING ANALYSIS FIRM LAST SUMMER BEGAN AN ALLIANCE WITH ARTHUR ANDERSEN AND COMPANY SOME LAWYERS HOWEVER QUESTION WHETHER THE CONVENIENCE OF ONE STOP SHOPPING IS MUCH OF A FACTOR TO CLIENTS OF COURSE THERE REMAIN SOME TRIAL LAWYERS WHO WOULD JUST AS SOON NOT BE BOTHERED BY CONSULTANTS FRILLS OR NO FRILLS AFFILIATED OR INDEPENDENT WHY DO I NEED SOMEONE TELLING ME HOW TO COMMUNICATE SAYS FREDERICK P. FURTH A TRIAL LAWYER IN SAN FRANCISCO AS THE CHIEF EXECUTIVE OFFICER OF ONE OF MR. FURTH'S CLIENTS TOLD HIM AFTER WATCHING JURY CONSULTANTS AT WORK I THOUGHT THAT'S WHAT I PAY YOU FOR ONE LITTLE NOTICED ELEMENT OF PRESIDENT CLINTON'S HEALTH CARE REFORM PROPOSAL IS THE INTRODUCTION OF IMPLICIT PRICE REGULATION FOR PHARMACEUTICALS THE NEW ADVISORY COUNCIL ON BREAKTHROUGH DRUGS WILL DETERMINE THE QUOTE REASONABLENESS QUOTE OF NEW DRUG PRICES BASED ON PRICES CHARGED IN OTHER COUNTRIES AND PRODUCER COSTS FOR MEDICARE THE SECRETARY OF HEALTH AND HUMAN SERVICES CAN NEGOTIATE A SPECIAL REBATE BASED ON THE LOWEST MANUFACTURER PRICE IN ANY ONE OF MORE THAN TWENTY COUNTRIES THIS IS IN ADDITION TO THE SEVENTEEN PERCENT ACROSS THE BOARD DISCOUNT REQUIRED FOR ALL DRUGS REIMBURSED BY MEDICARE FAILURE TO NEGOTIATE AN ACCEPTABLE REBATE CAN LEAD TO TOTAL EXCLUSION FROM MEDICARE COVERAGE A GENERAL ACCOUNTING OFFICE REPORT RELEASED BY REPRESENTATIVE HENRY WAXMAN THIS WEEK CONCLUDES THAT DRUG PRICES ARE SIXTY PERCENT HIGHER IN THE U. S. THAN IN THE U. K. BUT THIS STUDY IS BASED ON FLAWED METHODOLOGY THAT INVALIDATES ITS CONCLUSIONS MOREOVER EVEN A METHODOLOGICALLY SOUND AND MOST ARE NOT COMPARISON OF PRICES COULD NOT MEASURE THE FULL EFFECTS OF REGULATION MORE FUNDAMENTALLY THE PRESUMPTION THAT DRUG PRICES SHOULD BE THE SAME FOR ALL USERS IS MISGUIDED IN FACT PRICE DIFFERENTIALS BENEFIT MOST CONSUMERS INCLUDING U. S. CONSUMERS USING FOREIGN PRICES TO REGULATE IMPLICITLY OR EXPLICITLY PRICES CHARGED AT HOME HAS A LONG TRADITION IN SOME COUNTRIES BUT THAT DOES NOT MAKE IT GOOD POLICY FOR THE U. S. THE G. A. O.'S U. S. U. K. COMPARISON INCLUDES ONLY SEVENTY SEVEN LEADING BRANDED PRODUCTS AND FOR EACH PRODUCT INCLUDES ONLY ONE OF THE MANY DOSAGE FORMS STRENGTHS AND PACKAGE SIZES THAT ARE AVAILABLE THESE PACKS ACCOUNT FOR LESS THAN TEN PERCENT OF U. S. SALES AND ARE OFTEN UNREPRESENTATIVE EVEN OF THE PRODUCTS INCLUDED FOR THE LEADING U. S. PRODUCT AMOXIL FOR EXAMPLE THE U. K. PRICE IS SIXTY FIVE PERCENT HIGHER THAN THE U. S. PRICE FOR THE PARTICULAR PACK IN THE STUDY BUT WHEN WE AVERAGE OVER ALL DOSAGE FORMS AND STRENGTHS THE U. K. PRICE IS THREE TIMES THE U. S. PRICE MOREOVER THE G. A. O.'S U. S. U. K. STUDY DOES NOT GIVE GENERICS APPROPRIATE WEIGHT IN THE OVERALL PRICE COMPARISON YET GENERICS ACCOUNT FOR ONE THIRD OF ALL U. S. PRESCRIPTIONS GENERIC MARKET SHARE WILL SURGE IN THE NEXT FEW YEARS WITH PATENT EXPIRATION DUE FOR MORE THAN EIGHTY MAJOR PRODUCTS BY NINETEEN NINETY NINE AND INSURERS INCREASINGLY REIMBURSING ONLY FOR GENERICS MY STUDY'S COMPARISON OF DRUG PRICES IN NINE COUNTRIES USING ALL SALES OF ALL MATCHING PRODUCTS INCLUDING GENERICS AND SOME OVER THE COUNTER DRUGS REACHES VERY DIFFERENT CONCLUSIONS COMPARING PRICE PER DOSE OR UNIT CANADA GERMANY SWITZERLAND AND SWEDEN ARE MORE EXPENSIVE THAN THE U. S. THE U. K. AT TWENTY FOUR PERCENT LOWER PRICES THAN THE U. S. IS THE LOWEST EXCEPT FOR FRANCE MY ANALYSIS APPROPRIATELY WEIGHTED TO REFLECT EACH DRUG'S IMPORTANCE TO U. S. CONSUMERS INDICATES THAT U. S. CONSUMERS ARE NOT AS BADLY OFF COMPARED TO FOREIGN CONSUMERS AS THE G. A. O. HAS SUGGESTED NEVERTHELESS MY MEASURES STILL OVERSTATE THE RELATIVE PRICES OF DRUGS IN THE U. S. BECAUSE THEY DO NOT REFLECT THE DISCOUNTS AND REBATES RECEIVED BY MANAGED CARE AND BY MEDICAID AND OTHER GOVERNMENT PROGRAMS MANAGED DRUG BENEFIT PROGRAMS ARE RAPIDLY BECOMING THE NORM AND THIS GROWTH IS ACCELERATING IT IS THESE DISCOUNTED PRICES THAT ARE THE RELEVANT BENCHMARK FOR PROSPECTIVE POLICY MAKING THUS PRICE COMPARISONS SUCH AS THE G. A. O.'S FAIL TO MEASURE ACCURATELY THE COST OF DRUG THERAPY TO CONSUMERS THESE COMPARISONS AT ONE POINT IN TIME ALSO FAIL TO MEANINGFULLY MEASURE PRODUCER REVENUE SINCE THIS DEPENDS ON SALES OVER A DRUG'S ENTIRE ECONOMIC LIFE WHICH IS OFTEN SHORTER IN THE U. S. BECAUSE OF REGULATORY DELAYS IN LAUNCHING DRUGS AND THE RAPID POST PATENT ENTRY OF GENERICS BUT LET'S IGNORE FAULTY METHODOLOGY AND SUPPOSE THAT REGULATION DOES LOWER SOME PRICES IN OTHER COUNTRIES IT DOES NOT FOLLOW THAT THE U. S. SHOULD MIMIC SUCH POLICIES PRICE REGULATION HAS LONG TERM EFFECTS NOT REFLECTED IN SIMPLE PRICE COMPARISONS ON INNOVATION DRUG AVAILABILITY AND THE HEALTH AND WELL BEING OF CONSUMERS REGULATION THAT CALIBRATES U. S. PRICES TO FOREIGN PRICES OR TO PRODUCTION COSTS AS PROPOSED BY PRESIDENT CLINTON IS BAD ECONOMICS AND BAD INDUSTRIAL POLICY IT IGNORES THE CRITICAL ROLE OF COMMON COSTS IN THE COST STRUCTURE OF RESEARCH BASED DRUG FIRMS THE COSTS OF R. AND D. ARE LARGELY FIXED REGARDLESS OF WHETHER ONE PATIENT OR MILLIONS OF PATIENTS ARE SERVED AND CANNOT RATIONALLY BE ALLOCATED TO SPECIFIC PATIENTS MOREOVER THE COSTS OF DRY HOLES THAT NEVER MAKE IT TO MARKET ARE REAL COSTS OF PRODUCING A SUCCESSFUL COMPOUND YET THEY CANNOT BE ATTRIBUTED TO ANY SINGLE PRODUCT STILL LESS TO A PARTICULAR PACK SOLD IN A PARTICULAR COUNTRY PRODUCTION MARKETING AND DISTRIBUTION ALSO ENTAIL SIGNIFICANT COMMON COSTS THAT CANNOT BE PRECISELY ALLOCATED TO PARTICULAR PRODUCTS THIS COST STRUCTURE MEANS THAT PRICE REGULATION GEARED TO COSTS IS INHERENTLY ARBITRARY BUT WITH A STRONG DOWNWARD BIAS REGULATORS AND OTHER POWERFUL BUYERS FACE AN IRRESISTIBLE TEMPTATION TO PAY ONLY THEIR MARGINAL COSTS WHICH ARE A TINY FRACTION OF TOTAL COSTS HOPING OTHERS WILL COVER THE COMMON COSTS SMALL COUNTRIES CAN FREERIDE INDEFINITELY WITHOUT SIGNIFICANTLY AFFECTING GLOBAL SALES AND SUCH FREE RIDING MAY BE LEGITIMATE FOR LOW INCOME COUNTRIES BUT IF LARGE AFFLUENT COUNTRIES SUCH AS THE U. S. PLAY THE SAME GAME NO ONE IS LEFT TO COVER THE COMMON COSTS OF R. AND D. U. S. PRICE REGULATION WOULD IMPOSE AT LEAST AN EIGHTFOLD LARGER REDUCTION ON GLOBAL REVENUES FOR RESEARCH BASED DRUG COMPANIES THAN SIMILAR REGULATION IN THE U. K. AND THE IMPACT ON U. S. BASED COMPANIES WOULD BE EVEN LARGER SINCE THEIR REVENUES COME DISPROPORTIONATELY FROM THE U. S. MARKET THE GLOBAL SUPPLY OF INNOVATIVE PRODUCTS AND OUR PRE EMINENCE WITHIN THIS MARKET WOULD BOTH DECLINE REGULATING PRICES BY REFERENCE TO PRICES IN OTHER COUNTRIES IS EQUALLY MISGUIDED UNIFORM WORLD WIDE PRICES WOULD MEAN THAT MANY CONSUMERS IN LOW INCOME COUNTRIES COULDN'T AFFORD INNOVATIVE THERAPIES AND WHILE LOWERING PRICES IN RICHER COUNTRIES TO LEVELS THAT POORER ONES COULD AFFORD WOULD INITIALLY BENEFIT WEALTHY CONSUMERS THE FLOW OF INNOVATIVE DRUGS WOULD DECLINE INCLUDING MANY THAT THESE RICHER CONSUMERS WOULD HAVE BEEN WILLING TO PAY FOR EVERYONE WOULD LOSE SO WHO SHOULD PAY FOR THE COMMON COSTS CONSUMERS WHO VALUE THE SERVICES MOST ACCORDING TO WELL ESTABLISHED ECONOMIC PRINCIPLES THIS LOGIC IS APPLIED IN OTHER INDUSTRIES WITH SIGNIFICANT COMMON COSTS PEAK USERS PAY MORE FOR ELECTRICITY AIRLINE PASSENGERS WITH INFLEXIBLE SCHEDULES PAY MORE SINCE AMERICANS HAVE A HIGHER DEMAND FOR MOST HIGH TECH THERAPIES THAN CONSUMERS IN MOST OTHER COUNTRIES AMERICANS SHOULD PAY MORE THAN A PRO RATA SHARE OF THE COMMON COSTS OF DEVELOPING THEM IF WE DON'T WE WILL BE THE GREATEST LOSERS IN THE LONG RUN THE CURRENT INTEREST IN DRUG PRICE COMPARISONS AND REGULATION GREW OUT OF CONCERN OVER UNAFFORDABLE OUT OF POCKET DRUG COSTS FOR THE ELDERLY THIS IS AN INSURANCE PROBLEM THAT SHOULD BE ADDRESSED BY APPROPRIATE INSURANCE NOT BY REGULATING DRUG PRICES COMPETITIVE DRUG MANAGEMENT PLANS COULD CONTROL DRUG COSTS FOR THE ELDERLY AS THEY DO FOR THE NONELDERLY LET US HOPE THAT THIS APPROACH TO THE PROPOSED NEW MEDICARE BENEFIT IS ADDRESSED AT REPRESENTATIVE WAXMAN'S HEARINGS SCHEDULED FOR TUESDAY MANAGED DRUG BENEFIT PROGRAMS USE A RANGE OF STRATEGIES THAT RESEMBLE SOME USED BY FOREIGN GOVERNMENTS BUT WHEN GOVERNMENT APPLIES THESE REGULATORY CONTROLS AS A MONOPOLY PURCHASER CONSUMERS HAVE NOWHERE ELSE TO GO IF THEY DON'T LIKE THE PACKAGE MS. DANZON IS A HEALTH ECONOMIST AT THE WHARTON SCHOOL OF THE UNIVERSITY OF PENNSYLVANIA IN MOST STATES FEW PEOPLE HAVE ANY IDEA WHO RUNS THE STATE PENSION FUND BUT ALABAMA'S PUGNACIOUS DAVID BRONNER GETS INTO SO MANY PUBLIC SCRAPES THAT HIS NAME HAS BECOME ALMOST A HOUSEHOLD WORD A FEW MONTHS AGO GOVERNOR JIM FOLSOM'S OFFICE SENT INVESTIGATORS INCOGNITO TO EXAMINE DOCTOR BRONNER'S RECORDS MOST PENSION MANAGERS WOULD HAVE TREMBLED DOCTOR BRONNER THREW THEM OUT FOR SHOWING INSUFFICIENT IDENTIFICATION QUOTE THEY HAVEN'T BEEN BACK QUOTE HE SAYS GOVERNOR FOLSOM DROPPED HIS INVESTIGATION DOCTOR BRONNER IN FACT HAS BUILT A STRONG POLITICAL POWER BASE AND HE USES HIS POWER TO TAKE RISKS FINANCIAL AND POLITICALTHAT WOULD TERRIFY MOST STATE FUND MANAGERS IF MOST FUND MANAGERS WANTED TO PUT PENSION MONEY INTO THE LEISURE BUSINESS FOR INSTANCE THEY WOULD DO SO BY BUYING A LEISURE COMPANY'S STOCK DOCTOR BRONNER IS DOING IT BY SPENDING ONE HUNDRED TWENTY MILLION DOLLARS OF PENSION MONEY TO BUILD SEVEN HUGE GOLF COMPLEXES ACROSS THE STATE MANY PENSION MANAGERS INVEST IN REAL ESTATE BUT DOCTOR BRONNER IS BUILDING FUND OWNED OFFICE TOWERS AND PARKING GARAGES IN DOWNTOWN MONTGOMERY SO MANY THAT HE HAS BECOME THE MOST ACTIVE DEVELOPER IN ALABAMA'S CAPITAL OFFICIALLY JUST THE BUREAUCRAT WHO MANAGES MONEY FOR TEACHERS AND STATE EMPLOYEES DOCTOR BRONNER HAS COME TO VIEW HIMSELF AS THE PERSONAL GUARDIAN OF ALABAMA'S FUTURE WHEN HE DECIDED A FEW YEARS AGO THAT THE STATE WAS STAGNATING HE LAUNCHED THE FUND ON A CAMPAIGN TO FINANCE NEW BUSINESS INVESTMENT HELPING PULL IN A CHEMICAL PLANT A PULP PLANT EVEN A WAL MART DISTRIBUTION CENTER HE ALSO GIVES SPEECHES ON PET THEMES SUCH AS HOW TO REDUCE INFANT MORTALITY OVERCOME THE STATE'S TROUBLED PAST AND FIGHT THE CROOKS AND THIEVES IN GOVERNMENT WE ARE ALWAYS GOING TO HAVE CROOKS IN GOVERNMENT HE WARNED TROY STATE UNIVERSITY SENIORS IN A ROUSING SPEECH LAST DECEMBER NEVER GIVE UP NEVER GIVE UP BY GOD NEVER GIVE UP TRYING TO MAKE ALABAMA REACH ITS POTENTIAL IN A STATE WHERE THE PREVIOUS GOVERNOR LEFT OFFICE LAST YEAR AFTER BEING CONVICTED OF USING A TWO HUNDRED THOUSAND DOLLAR INAUGURAL FUND FOR PERSONAL GAIN THAT KIND OF TALK HAS TURNED THE PENSION CHIEF INTO A POPULAR HERO BUT HE ALSO HAS MADE PLENTY OF ENEMIES IN HIGH PLACES HIS CRITICS ARE SAYING THEY THINK THEIR POPULIST PENSION MANAGER FINALLY HAS GONE OFF THE DEEP END OPENLY ABUSING HIS POWER WHO SAID THEY ASK THAT A PENSION MANAGER SHOULD CLEAN UP POLITICS REDEVELOP THE STATE OR POPULARIZE GOLF I THINK ALL THE PUBLICITY HAS GONE TO HIS HEAD AND HE'S GOTTEN RECKLESS WITH THE PEOPLE'S MONEY SAYS STATE FINANCE DIRECTOR JAMES WHITE ONE OF ALABAMA'S MOST POWERFUL POLITICAL APPOINTEES HE CONTENDS THAT DOCTOR BRONNER'S FANCY OFFICE BUILDINGS ARE OVERPRICED QUOTE AND TO BUILD THIS ROBERT TRENT JONES GOLF TRAIL AS THE GOLF COURSES ARE CALLED THAT'S THE MOST RIDICULOUS THING I'VE EVER HEARD OF TO DO WITH RETIREMENT MONEY QUOTE THE FINANCE DIRECTOR SAYS TO DOCTOR BRONNER'S CHAGRIN HIS COURSES HAVE HIT FINANCIAL TROUBLE TECHNICALLY THE FORTY NINE YEAR OLD OFFICIAL CAN BE REMOVED FROM HIS JOB BY THE TWO PENSION BOARDS THAT APPOINTED HIM TWENTY YEARS AGO SOME ALABAMA POLITICIANS HAVE BEEN TRYING TO GET RID OF HIM SINCE THE GEORGE WALLACE DAYS BUT THEY HAVE FAILED HIS STRENGTH ISN'T REALLY DUE TO HIS PENSION FUND'S PERFORMANCE IT PROBABLY HAS DONE A BIT ABOVE AVERAGE EXPERTS SAY BUT HE HAS KEPT THE MONEY WHICH HAS GROWN TO MORE THAN THIRTEEN BILLION DOLLARS FROM JUST FIVE HUNDRED MILLION DOLLARS IN NINETEEN SEVENTY THREE OUT OF THE HANDS OF THE MUCH MISTRUSTED POLITICIANS TO MANY IN ALABAMA INCLUDING DOCTOR BRONNER HIMSELF THAT ALONE IS A HERCULEAN ACCOMPLISHMENT WE NEED HIM TO PROTECT US FROM ALL THOSE POLITICIANS SAYS HOWELL REGISTER A TEACHER IN SOUTHEASTERN ALABAMA EVEN A VAGUE THREAT TO THE PENSION CHIEF CAN STIR UP A POPULAR OUTCRY WHEN GOVERNOR FOLSOM TRIED TO APPOINT ONE OF HIS OWN ALLIES TO A PENSION FUND SUPERVISORY COMMITTEE LAST YEAR AN ACT THAT IN MOST STATES WOULD HAVE GONE UNNOTICED IT WAS WIDELY VIEWED AS AN ATTACK ON DOCTOR BRONNER'S INDEPENDENCE BRONNER SUPPORTERS FLOODED THE GOVERNOR'S OFFICE WITH ANGRY PHONE CALLS NEWSPAPERS WROTE EDITORIALS HOMEMADE PROTEST BANNERS HUNG FROM HIGHWAY BRIDGES THE NEW APPOINTEE RESIGNED A FOLSOM SPOKESWOMAN NOW SAYS THAT THE GOVERNOR AND DOCTOR BRONNER NEVER REALLY DISAGREED AND THAT THE GOVERNOR HAS HIGH REGARD FOR DOCTOR BRONNER EVERYONE'S AFRAID OF HIM COMPLAINS VICTOR POOLE ONE OF ALABAMA'S MOST SENIOR STATE SCHOOL BOARD MEMBERS WHO SAYS NO BUREAUCRAT SHOULD HAVE THIS KIND OF POWER I CALL HIM KING DAVID WHEN MR. POOLE PROPOSED THAT THE STATE PUT LESS MONEY INTO THE RETIREMENT SYSTEM AND SPEND MORE ON SCHOOLS DOCTOR BRONNER DESCRIBED HIM AS A SLEAZE IN A SPEECH TO SCHOOL SUPERINTENDENTS DOCTOR BRONNER SAYS MR. POOLE TURNED ON THE FUND AFTER BEING REFUSED A LOAN FOR A BUSINESS PROJECT MR. POOLE ANGRILY DENIES SEEKING MONEY DOCTOR BRONNER CAN INTIMIDATE EVEN THE BOARDS THAT OVERSEE HIM WHEN IN ONE RECENT MEETING A BOARD MEMBER SAID DOCTOR BRONNER SHOULD BE LESS OUTSPOKEN DOCTOR BRONNER RECALLS THAT I SAID I'M THE ONE WHO GOT THE LAW CHANGED SO YOU COULD BE ON THIS BOARD SO THEN HE SHUT UP AND WHEN ALABAMA JUDGES WHO ARE ELECTED OFFICIALS BEGAN RULING AGAINST THE FUND IN TWO CURRENT COURT CASES A FURIOUS DOCTOR BRONNER WARNED THAT PENSIONERS MIGHT HAVE TO GET INVOLVED IN JUDICIAL ELECTIONS DOCTOR BRONNER BASKS IN THE ATTENTION HE CAN PRODUCE EIGHTEEN SCRAPBOOKS OF NEWSPAPER CLIPPINGS CHRONICLING HIS BATTLES HE MAY BE AMERICA'S ONLY PENSION MANAGER WHOSE OFFICE WALLS ARE COVERED WITH DOZENS OF POLITICAL CARTOONS FROM LOCAL NEWSPAPERS THEY DEPICT HIM AS RHETT BUTLER AND AS SUPERMAN FOR EXAMPLE QUOTE DAVID BRONNER IS UNIQUE QUOTE SAYS DEWITT BOWMAN CHIEF INVESTMENT OFFICER OF THE HUGE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM I REALLY DON'T KNOW OF ANY OTHER PUBLIC PENSION SYSTEM OFFICIAL WHO OPERATES THE WAY HE DOES MOST OF US OPERATE IN AN ARENA WHERE YOU CAN'T AFFORD TO GET INTO POLITICAL SQUABBLES BECAUSE IT'S YOUR JOB IF YOU DO DOCTOR BRONNER THRIVES ON CONTROVERSY WHEN CONCRETE FOR ONE OF HIS FUND'S MONTGOMERY OFFICE TOWERS DIDN'T MEET HIS STANDARDS HE ORDERED THIRTY SIX ENORMOUS SUPPORT COLUMNS DEMOLISHED AND REBUILT WHEN HE FOUND LITTER AT ONE OF HIS FUND'S NEW GOLF COURSES HE FILLED A GOLF CART WITH THE TRASH AND DUMPED IT ON THE MANAGER'S DESK TO SEND A MESSAGE DOCTOR BRONNER SCOFFS AT SUGGESTIONS THAT HE IS POWER MAD MY THING ISN'T MONEY IT ISN'T EGO AND IT ISN'T POWER HE SAYS IT IS FIGHTING AGAINST WHAT I SEE AS THE UNINFORMED THE BAD GUYS THE CORRUPT WHO HAVE HELD ALABAMA DOWN FOR SO LONG AS FOR COMPLAINTS THAT THIS ISN'T HIS JOB HE SAYS IT IS HIS DUTY TO RETIREES TO MAKE THE STATE ADVANCE AND HE HAS PUT THAT PHILOSOPHY UNDER HIS NAME ON PLAQUES NEXT TO THE GOLF CLUBHOUSE DOORS THE SON OF A MINNESOTA POOL HALL OWNER DOCTOR BRONNER DIDN'T SET FOOT IN ALABAMA UNTIL HE WAS TWENTY FOUR YEARS OLD AND SCOUTING FOR A LAW SCHOOL HE EARNED BOTH A LAW DEGREE AND PUBLIC ADMINISTRATION DOCTORATE AT THE UNIVERSITY OF ALABAMA AND RECOMMENDED BY THE BUSINESS SCHOOL DEAN TOOK CHARGE OF THE PENSION PROGRAM WHEN HE WAS TWENTY EIGHT HE FOUND OFFICIALS SQUIRRELING CHECKS AWAY FOR WEEKS BEFORE DEPOSITING THEM AND READILY CASHABLE BEARER BONDS BEING LEFT ON TABLES WHILE CLERKS WENT TO LUNCH HE MODERNIZED SYSTEMS AND BEGAN GROWING ASSETS DOCTOR BRONNER SAYS THAT HIS CONSERVATIVE INVESTMENT RULES LONG KEPT HIS RETURNS FROM GETTING MUCH ABOVE AVERAGE BUT THAT HE AVOIDED DISASTERS SUCH AS JUNK BONDS AND REAL ESTATE PARTNERSHIPS HIS RECENT MOVES INTO HIGHER RISK PROJECTS SUCH AS GOLF COURSES AND REAL ESTATE HAVE AFFECTED FUND PERFORMANCE LITTLE SO FAR LIKE OTHER PENSION MANAGERS HE IS LOOKING FOR HIGHER RETURNS IN A WORLD WHERE BOND RATES HAVE FALLEN TOO LOW TO COVER PENSION NEEDS HE EXPLAINS HE IS EVEN THINKING OF FINANCING MOVIES WHICH MOST PENSION MANAGERS AVOID HE MADE GOSSIP COLUMNS LAST SUMMER BY HAVING LUNCH IN MONTGOMERY WITH ACTOR BURT REYNOLDS DOCTOR BRONNER'S THEORY OF MOVIE FINANCE INVEST ALONG WITH EXPERIENCED PARTNERS WHO RISK THEIR OWN MONEY AND INVEST BIG I WOULDN'T DO JUST ONE OR TWO MOVIES HE EXPLAINS BUT IF SOMEONE WERE WILLING TO PUT UP MONEY WITH ME I COULD DO TEN OR TWELVE AND IN TEN OR TWELVE YOU HAVE TO HAVE A FEW WINNERS THERE ARE SOME INVESTMENTS WHERE IF YOU PUT ENOUGH MONEY IN IT YOU ELIMINATE THE RISK QUOTE BUT MR. REYNOLDS HASN'T GOT BACK TO HIM AND DOCTOR BRONNER SAYS THE IDEA IS ON A BACK BURNER DOCTOR BRONNER STARTED BUILDING GOLF COURSES AFTER A NINETEEN NINETY NATIONAL SCANDAL WHEN IT WAS WIDELY REPORTED THAT BIRMINGHAM'S SHOAL CREEK GOLF CLUB SITE OF THE P. G. A. CHAMPIONSHIP THAT YEAR WAS SEGREGATED ALL I WAS SEEING WAS MY WORK OF TWENTY YEARS GETTING BLOWN AWAY BY ALL THESE ISSUES BEING RAISED AGAIN HE SAYS A GOLFING ENTHUSIAST WHO KEEPS A PHOTO OF HIMSELF WITH ARNOLD PALMER IN HIS OFFICE DOCTOR BRONNER BUILT SEVEN TOP DRAWER PUBLIC FACILITIES EACH WITH THIRTY SIX TO FIFTY FOUR HOLES FINANCE DIRECTOR WHITE COMPLAINS THAT HE CAN'T GET ENOUGH DETAILS ON THAT OR OTHER SUBJECTS WITH THE TWO MEN FEUDING OPENLY LAST SUMMER MR. WHITE REQUESTED EXTENSIVE FIGURES ON PENSION FINANCE DOCTOR BRONNER SAID THE REQUEST WAS FAR TOO DETAILED AND WROTE TO MR. WHITE THAT THE PENSION PROGRAM IS NOT LIKE A SMALL INVESTMENT ACCOUNT AT THE LOCAL BANK ASH WILLIAMS WHO HEADS FLORIDA'S RETIREMENT SYSTEM SAYS HE LOOKED INTO GOLF AND MOVIES AND DECIDED BOTH WERE FAR TOO RISKY CALIFORNIA'S MR. BOWMAN HOWEVER CALLS DOCTOR BRONNER A GIFTED DEAL MAKER AND ADDS IF IT IS PROPERLY MONITORED AND THE PERSON HAS THE RIGHT SKILLS WHY NOT MAKE USE OF THEM BUT COSTS SOARED AND THE GOLF PROJECT WOUND UP MORE THAN TWENTY PERCENT OVER BUDGET WITH THE COURSES ONLY NOW BECOMING FULLY OPERATIONAL DOCTOR BRONNER SAYS HE WON'T KNOW FOR A YEAR OR TWO HOW THEY WILL FARE BUT ON PURELY FINANCIAL GROUNDS HE SAYS HE NOW COULDN'T JUSTIFY BUILDING THEM AFTER INITIALLY SHARING OWNERSHIP WITH A DEVELOPMENT GROUP THAT RAN INTO FINANCIAL TROUBLE THE PENSION FUND TOOK FULL CONTROL LAST SUMMER IF WE'RE GOING TO CRASH HE SAYS I WANT TO BE IN THE COCKPIT HOWEVER DOCTOR BRONNER RECENTLY EMPHASIZED TO HIS BOARD WHAT HE CALLED THE COURSES' ECONOMIC BENEFITS THEIR ABILITY TO PULL IN TOURISTS AND CORPORATE INVESTMENT IF YOUR STATE IS IN THE BOTTOM FIVE OR TEN YOU'VE JUST GOT TO DO IT BECAUSE IT IS THE ONLY WAY TO CHANGE THE DIRECTION OF YOUR STATE HE SAYS HE ADDS IN AN INTERVIEW LATER THAT THE PROJECT REPRESENTS ONLY A TINY PART OF THE FUND'S PORTFOLIO QUOTE WORST CASE SCENARIO WE END UP LOSING A LITTLE AND SELLING IT AND THEN ALABAMA STILL HAS SOME BEAUTIFUL GOLF COURSES QUOTE HE SAYS ANYWAY HE STILL ISN'T SHYING AWAY FROM RISK HE IS SPENDING MILLIONS OF DOLLARS TO REFURBISH A HUGE NEW YORK OFFICE TOWER AT FIFTY FIVE WATER STREET ON MANHATTAN'S SOUTHERN TIP INITIALLY A LENDER TO THE PROJECT HIS FUND ACQUIRED MAJORITY CONTROL AFTER THE OWNER THE U. S. UNIT OF OLYMPIA AND YORK DEVELOPMENTS LIMITED RAN INTO DEBT TROUBLE HE IS AS COMBATIVE AS EVER WHEN MAY DEPARTMENT STORES COMPANY TRIED TO PREPAY SOME HIGH INTEREST BONDS HE PERSUADED OTHER PENSION MANAGERS TO HELP HIM CHALLENGE THE MOVE IN COURT THE CASE WHICH COULD SET A MAJOR PRECEDENT IS BEING HEARD IN STATE COURT IN MONTGOMERY AND HE IS CONTINUING TO STIR UP CONTROVERSY AT HOME ONE OF HIS MOST POTENT WEAPONS IS A MONTHLY NEWSLETTER THAT HE WRITES FOR THE TWO HUNDRED TWENTY THREE THOUSAND RETIREMENT PROGRAM MEMBERS COUNTING THEIR RELATIVES AND FRIENDS HE FIGURES IT GETS HIS IDEAS INTO AS MANY AS FORTY PERCENT OF ALABAMA'S HOMES WHEN HE WANTS TO APPLY PRESSURE HE ISN'T ABOVE PUBLISHING SOMEONE'S HOME PHONE NUMBER AND URGING READERS TO CALL HE DOESN'T MINCE WORDS A RECENT NEWSLETTER ARTICLE ABOUT JUDGES SEEKING HIGHER PENSIONS WAS HEADLINED UNBELIEVABLE GREED AND IN NOVEMBER A STRONGLY WORDED ARTICLE ACCUSED FINANCE DIRECTOR WHITE THE STATE'S HIGHEST RANKING BLACK APPOINTED OFFICIAL OF UNDULY FAVORING BLACKS FOR TWO STATE JOBS THE ARTICLE WAS CRITICIZED BY ALMOST EVERY CIVIL RIGHTS ORGANIZATION IN ALABAMA BUT DOCTOR BRONNER SAYS HE STANDS BY HIS ACCUSATIONS AS THE CARTOONS IN HIS OFFICE ATTEST HE HAS WEATHERED OTHER STORMS LATE IN THE NINETEEN SEVENTIES HE EXPOSED BRIBERY IN STATE CONTRACTS IN THE NINETEEN EIGHTIES HE TRIED TO FORCE BELOVED UNIVERSITY OF ALABAMA FOOTBALL COACH PAUL BEAR BRYANT TO RETIRE AT AGE SEVENTY LIKE OTHER STATE EMPLOYEES COACH BRYANT RENDERED THE ISSUE MOOT BY DYING DOCTOR BRONNER LATER OUTRAGED FREEDOM OF THE PRESS ADVOCATES BY TRYING BUT FAILING TO BUY MONTGOMERY'S INFLUENTIAL N. B. C. TELEVISION AFFILIATE WITH PENSION MONEY DOCTOR BRONNER SAYS HIS ACTIVIST INVESTING DATES FROM THE MID NINETEEN EIGHTIES WHEN ALABAMA WAS REPORTED NEAR THE BOTTOM OF THE NATION IN LITERACY INFANT MORTALITY AND HIGHSCHOOL GRADUATION RATES HE WAS STRONGLY INFLUENCED BY HIS FATHER WHO BELIEVED YOU CAN'T SOLVE BIG PROBLEMS UNLESS YOU TAKE CARE OF SMALL ONES SUCH AS CLEANLINESS I SCRUBBED MY FATHER'S POOL HALL EVERY SATURDAY NIGHT HE SAYS IT WAS THE CLEANEST DAMN POOL HALL IN MINNESOTA TODAY DOCTOR BRONNER WRITES MONTGOMERY MAYOR EMORY FOLMAR AS OFTEN AS ONCE A WEEK TELLING HIM WHERE HE HAS SEEN LITTER WEEDS OR BROKEN STREET LIGHTS THE MAYOR WHO INITIALLY DISLIKED THE MEDDLESOME PENSION CHIEF HAS BECOME A BIG FAN HE APPLAUDS THE DOWNTOWN BUILDING SPREE AND EVEN DOCTOR BRONNER'S CRITICS AREN'T SURE THE LATEST CONTROVERSY WILL WEAKEN HIS POPULARITY HE'S ROCK SOLID LAMENTS JOHN TYSON JUNIOR THE ONLY SCHOOL BOARD MEMBER WHO IS BACKING MR. POOLE IN HIS ARGUMENT WITH DOCTOR BRONNER THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND THREE SIXTEENTHS PERCENT HIGH THREE PERCENT LOW THREE PERCENT NEAR CLOSING BID THREE AND ONE EIGHTH PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT ONE OH PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT ONE EIGHT PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT TWO OH PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT TWO FIVE PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT THREE OH PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT THREE FIVE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT FOUR FIVE PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE SIX PERCENT THIRTY DAYS THREE POINT TWO TWO PERCENT SIXTY DAYS THREE POINT TWO FIVE PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE THREE PERCENT ONE MONTH TWO POINT FIVE EIGHT PERCENT TWO MONTHS TWO POINT SIX ONE PERCENT THREE MONTHS TWO POINT SEVEN SEVEN PERCENT SIX MONTHS THREE POINT ONE TWO PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH NINE PERCENT ONE MONTH THREE POINT TWO ONE PERCENT THREE MONTHS THREE POINT THREE NINE PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH SEVEN PERCENT THIRTY DAYS THREE POINT ONE ONE PERCENT SIXTY DAYS THREE POINT ONE SEVEN PERCENT NINETY DAYS THREE POINT TWO ONE PERCENT ONE HUNDRED TWENTY DAYS THREE POINT TWO SEVEN PERCENT ONE HUNDRED FIFTY DAYS THREE POINT THREE ONE PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT ONE MONTH THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT TWO MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT THREE AND FIVE SIXTEENTHS PERCENT FOUR MONTHS THREE AND ONE HALF PERCENT THREE AND THREE EIGHTHS PERCENT FIVE MONTHS THREE AND NINE SIXTEENTHS PERCENT THREE AND SEVEN SIXTEENTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND THREE SIXTEENTHS PERCENT ONE MONTH THREE AND THREE EIGHTHS PERCENT THREE MONTHS THREE AND NINE SIXTEENTHS PERCENT SIX MONTHS THREE AND SEVEN EIGHTHS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT SIX PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY THIRTY FIRST NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE NINE PERCENT THIRTEEN WEEKS THREE POINT ONE SIX PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT NINE THREE PERCENT SIXTY DAYS SEVEN PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT EIGHT PERCENT SIXTY DAYS SIX POINT NINE EIGHT PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT OH FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN TWO PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS THE PRESIDENT LIFTED A NINETEEN YEAR OLD U. S. TRADE EMBARGO AGAINST VIETNAM THE PRESIDENT SAID HE BELIEVED THE STEP WOULD FURTHER EFFORTS TO GET A FULL ACCOUNTING OF AMERICANS MISSING IN VIETNAM HE INSISTED THAT REMOVING THE TRADE EMBARGO WASN'T THE SAME AS RESTORING FULL DIPLOMATIC RELATIONS WITH HANOI SAYING THE U. S. IS DEMANDING MORE ANSWERS ON THE M. I. A. ISSUE THE DECISION WILL SET OFF A RACE BY U. S. COMPANIES TO CATCH UP WITH FOREIGN COMPETITORS IN VIETNAM ONE OF ASIA'S FASTEST GROWING MARKETS CLINTON WHO AVOIDED MILITARY SERVICE IN VIETNAM PLAYED DOWN THE BUSINESS OPPORTUNITIES IN DEFERENCE TO THE FAMILIES OF MISSING SOLDIERS MANY VETERANS GROUPS OPPOSED LIFTING THE EMBARGO THE SENATE CONFIRMED WILLIAM PERRY TO BE U. S. DEFENSE SECRETARY THE NINETY SEVEN TO ZERO VOTE CAME SLIGHTLY MORE THAN A WEEK AFTER CLINTON NOMINATED PERRY UNTIL NOW THE NUMBER TWO PENTAGON ADMINISTRATOR TO SUCCEED LES ASPIN PERRY WAS SWORN IN LAST NIGHT TRANSPORTATION OFFICIALS UNVEILED NEW COMPREHENSIVE REGULATIONS THAT INSTITUTE ALCOHOL TESTING AND EXPAND DRUG TESTING IN THE TRANSPORT INDUSTRIES THE RULES CALL FOR RANDOM ALCOHOL AND DRUG TESTS FOR PILOTS TRUCKERS BUS DRIVERS TRAIN ENGINEERS AND OTHERS IN JOBS THAT AFFECT PUBLIC SAFETY BOSNIAN SERBS BOWED TO A U. N. THREAT OF FORCE AND REMOVED A ROADBLOCK OUTSIDE SARAJEVO GIVING PEACEKEEPERS ACCESS TO THE CAPITAL A DAY EARLIER THE NEW U. N. MILITARY COMMANDER IN BOSNIA GENERAL MICHAEL ROSE PROMISED A QUOTE HARD NOSED QUOTE EFFORT TO AID CIVILIANS AND THREATENED TO USE COMBAT VEHICLES TO FORCE A WAY PAST THE ROADBLOCK NATION OF ISLAM LEADER FARRAKHAN SAID HE HAD DISMISSED A TOP AIDE FOR MAKING REPUGNANT ANTI SEMITIC REMARKS IN A NOVEMBER SPEECH THAT SPARKED DENUNCIATIONS IN CONGRESS BUT FARRAKHAN COUPLED HIS REBUKE WITH AN ATTACK ON A JEWISH GROUP THE ANTI DEFAMATION LEAGUE WHICH HE CALLED SELF CENTERED AND ANTIBLACK JAPAN'S RULING COALITION SHELVED A DAYOLD TAX CUT PLAN THAT HAD THREATENED TO TOPPLE THE HOSOKAWA GOVERNMENT BUT FINANCE MINISTRY OFFICIALS PREDICTED A PACKAGE WITH TAX CUTS WILL BE WORKED OUT BEFORE THE PRIME MINISTER MEETS WITH CLINTON IN WASHINGTON NEXT FRIDAY E. P. A. CHIEF BROWNER ANNOUNCED THE ADMINISTRATION'S PLAN FOR REWRITING THE SUPERFUND LAW TO MIXED REVIEWS FROM MEMBERS OF CONGRESS ENVIRONMENTALISTS AND INDUSTRY THE SPACE SHUTTLE DISCOVERY BLASTED OFF FROM CAPE CANAVERAL FLORIDA CARRYING FIVE U. S. ASTRONAUTS AND A COSMONAUT ON AN EIGHT DAY RESEARCH MISSION THE HEAD OF RUSSIA'S SPACE PROGRAM PRAISED THE APPARENTLY FLAWLESS LIFTOFF CONSIDERED A PRELUDE TO A SHARED SPACE STATION THE ADMINISTRATION IS SEEKING TO BOOST SPENDING ON JOB TRAINING PROGRAMS BY THIRTEEN PERCENT TO OVER SEVEN BILLION DOLLARS FOCUSING ON MIDDLE CLASS UNEMPLOYED WORKERS BUT ADDING FUNDS FOR THE INNER CITY POOR MEXICO'S DEPUTY FOREIGN MINISTER ISSUED A STATEMENT CRITICIZING A U. S. CONGRESSIONAL HEARING THAT CONVENED THIS WEEK TO DISCUSS WHETHER LAST MONTH'S CHIAPAS UPRISING MIGHT SPREAD ROZENTAL SAID NAFTA DOESN'T GIVE U. S. LAWMAKERS THE RIGHT TO SIT IN JUDGMENT ON MEXICAN ISSUES EMERGENCY QUAKE AID WAS APPROVED BY THE HOUSE WHICH REJECTED ATTEMPTS TO FINANCE THE ASSISTANCE THROUGH NEW CUTS IN OTHER PROGRAMS THE SEVEN POINT SEVEN BILLION DOLLARS IN LOS ANGELES EARTHQUAKE AID AND ANOTHER ONE BILLION DOLLARS IN LOANS WON APPROVAL IN A THREE HUNDRED THIRTY SEVEN TO SEVENTY FOUR VOTE AS PART OF A BROADER MEASURE AUTHORIZING SUPPLEMENTAL SPENDING THE SENATE AGREED TO DENY FEDERAL FUNDS TO ANY STATE OR LOCAL AGENCIES THAT BAR CONSTITUTIONALLY PROTECTED PRAYER IN PUBLIC SCHOOLS THE SEVENTY FIVE TO TWENTY TWO VOTE CAME AFTER SENATOR HELMS MODIFIED THE LANGUAGE IN HIS PROPOSAL TO ENSURE THAT IT WOULD APPLY ONLY TO STUDENTINITIATED VOLUNTARY PRAYER WHICH IS PERMITTED UNDER THE CONSTITUTION INFLUENCE IN GEORGIA IN EXCHANGE FOR ECONOMIC AID IN A SIGN OF CONTINUED WEAKNESS IN THE MEXICAN ECONOMY TELEFONOS DE MEXICO S. A. THE GIANT TELEPHONE CONCERN REPORTED A MEAGER FOUR POINT FIVE PERCENT GAIN IN NET INCOME FOR NINETEEN NINETY THREE TELMEX'S EARNINGS ARE PERHAPS THE MOST WIDELY WATCHED AMONG MEXICAN COMPANIES TELMEX WHOSE AMERICAN DEPOSITARY SHARES TRADE ON THE NEW YORK STOCK EXCHANGE IS A BELLWETHER FOR MEXICO'S ECONOMY AND STOCK MARKET TRADERS BID UP THE STOCK AND THE MEXICAN MARKET AS A WHOLE BEFORE THE EARNINGS REPORT AS RUMORS OF A SIX DOLLAR A SHARE EARNINGS FIGURE CIRCULATED THE MEXICAN MARKET CLOSED AT A RECORD HIGH THURSDAY WHILE IN NEW YORK TELMEX ADSS ROSE ONE DOLLAR AND TWENTY FIVE CENTS TO SEVENTY FIVE DOLLARS AND TWENTY FIVE CENTS APIECE BUT AFTER THE EARNINGS ANNOUNCEMENT ANALYSTS EXPECTED SELLING IN TELMEX ADSS THIS MORNING IN NEW YORK QUOTE A LOT OF PEOPLE OVER THE PAST COUPLE OF DAYS THOUGHT THE EARNINGS WERE GOING TO BE A LOT HIGHER QUOTE SAID ERIC ANDERSON ANALYST WITH AFIN SECURITIES INTERNATIONAL NEW YORK HE SAID THE EARNINGS REFLECT A WEAK MEXICAN ECONOMY TELMEX POSTED TWELVE POINT EIGHT PERCENT GROWTH FOR THE YEAR IN THE NUMBER OF TELEPHONE LINES IN LINE WITH EXPECTATIONS NET RYLAND GROUP INCORPORATED REPORTED A TEN PERCENT INCREASE IN FOURTH QUARTER EARNINGS LARGELY DUE TO IMPROVEMENTS IN ITS HOMEBUILDING OPERATIONS THE COLUMBIA MARYLAND HOMEBUILDER AND MORTGAGE SERVICES COMPANY POSTED FOURTH QUARTER NET INCOME OF SEVEN POINT SIX MILLION DOLLARS OR FORTY FIVE CENTS A SHARE UP FROM SIX POINT NINE MILLION DOLLARS OR FORTY CENTS A SHARE A YEAR EARLIER REVENUE TOTALED FOUR HUNDRED THIRTY POINT TWO MILLION DOLLARS A RISE OF NEARLY NINE PERCENT FROM THE SAME PERIOD A YEAR EARLIER RYLAND'S NINETEEN NINETY FOUR FOCUS IS ON QUOTE OPTIMIZING THE STRENGTH OF OUR MORTGAGE OPERATIONS AND MAXIMIZING SHAREHOLDER VALUE QUOTE SAID R. CHAD DREIER THE COMPANY'S RECENTLY NAMED PRESIDENT AND CHIEF EXECUTIVE FOR THE YEAR RYLAND HAD A NET LOSS OF TWO POINT SEVEN MILLION DOLLARS OR THIRTY FOUR CENTS A SHARE COMPARED WITH NET INCOME OF TWENTY SEVEN POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND SIXTY SIX CENTS A SHARE IN NINETEEN NINETY TWO REVENUE ROSE ABOUT TWO PERCENT TO ONE POINT FOUR SEVEN BILLION DOLLARS RYLAND GROUP INCORPORATED SAID PRIORITIES IN NINETEEN NINETY FOUR INCLUDE IMPROVING ITS HOME BUILDING OPERATIONS AN ARTICLE FRIDAY OMITTED THIS GOAL IN CITING THE COMPANY'S FOCUS ON OPTIMIZING THE STRENGTH OF ITS MORTGAGE OPERATIONS AND MAXIMIZING SHAREHOLDER VALUE TWELVE MONTHS AFTER MOSCOW SIGNED THE CHEMICAL WEAPONS CONVENTION IN PARIS THE RUSSIAN GOVERNMENT HAS JAILED A SCIENTIST WHO REVEALED THE EXISTENCE OF A CLANDESTINE PROGRAM TO DEPLOY THE MOST LETHAL CHEMICAL WEAPON EVER DEVELOPED HIS TRIAL WILL BE THE FIRST TEST OF RUSSIA'S JUDICIAL SYSTEM UNDER ITS NEW CONSTITUTION BUT IT IS ALSO A TEST OF WHETHER MOSCOW INTENDS TO HONOR ITS COMMITMENTS TO SHARE INFORMATION ON CHEMICAL WEAPONS PROGRAMS AND THE ELIMINATION OF MOST OF ITS POISON GAS ARSENAL THE DEFENDANT VIL MIRZAYANOV IS ONE OF A NEW GROUP OF DISSIDENT SCIENTISTS EMERGING FROM RUSSIA'S SPRAWLING MILITARY INDUSTRIAL COMPLEX IN SEPTEMBER NINETEEN NINETY TWO HE AND COLLEAGUE LEV FEDOROV IN AN ARTICLE IN MOSCOW NEWS TOLD OF A BINARY CHEMICAL WEAPON CALLED NOVICHOK A POISON FIVE TO TEN TIMES AS LETHAL AS THE VX GAS CURRENTLY IN WORLD ARSENALS MR. MIRZAYANOV SAYS HE HELPED DEVELOP THE TOXIN UNTIL HIS CONSCIENCE MADE HIM STOP BUT IN GOING PUBLIC HE TOUCHED A SENSITIVE NERVE DESPITE MOSCOW'S COMMITMENTS TO ELIMINATE THE BULK OF ITS ARSENALS AND OPEN ITS FACILITIES TO INSPECTION ITS BIOLOGICAL AND CHEMICAL WEAPONS PROGRAMS REMAIN SHROUDED IN SECRECY MR. MIRZAYANOV'S PROSECUTION BEGAN BEFORE THE NEW CONSTITUTION'S OFFICIAL ADOPTION IN DECEMBER BUT THE TRIAL IS TAKING PLACE NOW WITH LITTLE REGARD FOR THE RIGHTS THAT DOCUMENT PROMISED THE ORIGINAL TRIAL DATE OF JANUARY SIXTH WAS CHANGED APPARENTLY TO AVOID DISRUPTING THE CLINTON YELTSIN SUMMIT WHEN THE TRIAL OPENED JANUARY TWENTY FOURTH THE COURT DENIED ALL DEFENSE MOTIONS INCLUDING REQUESTS TO HAVE INDEPENDENT EXPERTS TESTIFY ON THE SCIENTIST'S BEHALF AND TO PERMIT INTERNATIONAL OBSERVERS TO ATTEND MR. MIRZAYANOV MAINTAINS THAT THE TRIAL VIOLATES STATUTE TWENTY OF THE CRIMINAL CODE WHICH GIVES THE ACCUSED THE RIGHT TO BE SUBJECT TO A QUOTE THOROUGH FULL AND OBJECTIVE INVESTIGATION QUOTE THE PROSECUTION'S INVESTIGATION WAS NOTHING OF THE SORT IT WAS CARRIED OUT BY THE MINISTRY OF SECURITYTHE RENAMED INTERNAL SECURITY SECTION OF THE FORMER K. G. B. WHICH WITNESSES SAY HAS DISTORTED THEIR STATEMENTS ONE SUCH WITNESS IS BALTIMORE SUN REPORTER WILL ENGLUND WHO COVERED MR. MIRZAYANOV'S PLIGHT FROM THE BEGINNING AND WAS HELD AND INTERROGATED BY THE K. G. B. IN APRIL WITHOUT BEING GIVEN THE RIGHT TO HAVE A LAWYER OR U. S. EMBASSY OFFICIAL PRESENT MR. MIRZAYANOV ALSO ARGUES THAT HIS PROSECUTION VIOLATES RUSSIA'S NEW CONSTITUTION WHICH STATES THAT ANY LAW ACT OR DECREE ENTERS INTO FORCE ONLY AFTER IT HAS BEEN PUBLISHED THE SCIENTIST IS BEING TRIED UNDER FIVE GOVERNMENT ACTS ALL UNPUBLISHED ONE WAS A MARCH THIRTIETH NINETEEN NINETY THREE EDICT BY PRIME MINISTER VIKTOR CHERNOMYRDIN THAT MADE MR. MIRZAYANOV'S STATEMENTS A CRIME SIX MONTHS AFTER THE FACT IN A LETTER TO THE THREE JUDGE PANEL TRYING HIS CASE MR. MIRZAYANOV WROTE THE ONLY POSSIBLE OPTION FOR ME IS NOT TO PARTICIPATE IN THIS CRIMINAL EVENT THEREFORE I AM INFORMING YOU THAT FROM THIS POINT ON I WILL NOT APPEAR IN THE COURT PROCEEDINGS HE BOYCOTTED THE SECOND DAY OF THE TRIAL AND WAS ARRESTED AND IMPRISONED UNTIL A NEW TRIAL SET TO BEGIN THIS WEEK IF MR. MIRZAYANOV IS CONVICTED THE GOVERNMENT IS LIKELY TO PROSECUTE OTHER DISSIDENT SCIENTISTS AS WELL ONE IS VLADIMIR UGLEV ONE OF RUSSIA'S TOP DESIGNERS OF BINARY WEAPONS AND AN INVENTOR OF KEY COMPOUNDS IN NOVICHOK AT A CLANDESTINE LABORATORY IN SHIKHANY AFTER RUSSIA SIGNED THE CHEMICAL WEAPONS CONVENTION HE WROTE AN ARTICLE DESCRIBING FIFTEEN YEARS OF DEVELOPMENT OF HUNDREDS OF DEADLY CHEMICAL AGENTS AND CONFIRMED MR. MIRZAYANOV'S STORY HE WAS FIRED AND INVESTIGATED BY THE FORMER K. G. B. MOSCOW'S BEHAVIOR IN TRYING TO QUASH EXPOSURE OF NOVICHOK HAS MANY PARALLELS TO SOVIET ATTEMPTS TO COVER UP THE NINETEEN SEVENTY NINE ANTHRAX DISASTER IN SVERDLOVSK WHERE AN ACCIDENT AT A SECRET BIOLOGICAL WEAPONS LAB KILLED SIXTY FOUR PEOPLE JUST AS SVERDLOVSK WAS A CLOSED CITY THROUGH THE SOVIET PERIOD THE MAIN SITE OF RUSSIAN CHEMICAL WEAPONS PRODUCTION SHIKHANY REMAINS CLOSED TO FOREIGNERS TO THIS DAY THE DISREGARD FOR PUBLIC SAFETY IS ALSO SIMILAR ACCORDING TO A STATEMENT FROM ANDREI ZHELEZNYAKOV A SCIENTIST WHO ALSO WORKED ON NOVICHOK A MOSCOW LAB KNOWINGLY RELEASED TOXINS INTO THE AIR THROUGH A FILTER OFFICIALS KNEW WAS FAULTY MR. UGLEV ALLEGES THAT THERE HAVE BEEN MYSTERIOUS OUTBREAKS OF DISEASE IN THE VOLSK REGION AROUND SHIKHANY AND THAT SECRECY QUOTE IS AN OBSTACLE TO FINDING OUT THE CAUSES QUOTE VICTIMS AND DOCTORS WERE SILENCED IN BOTH CASES WHEN MR. ZHELEZNYAKOV WAS HOSPITALIZED AFTER BEING EXPOSED TO A NOVICHOK STRAIN IN A NINETEEN EIGHTY SEVEN LAB ACCIDENT THE K. G. B. INSTRUCTED DOCTORS TO SIGN A SECRECY PLEDGE A DYING MR. ZHELEZNYAKOV WAS GIVEN A DISABILITY PENSION IN EXCHANGE FOR HIS SILENCE AS IN THE SVERDLOVSK CASE WHERE AUTHORITIES USED TAINTED MEAT AS AN EXCUSE TO EXPLAIN THE ANTHRAX OUTBREAK THE K. G. B. TOLD DOCTORS THAT MR. ZHELEZNYAKOV WAS SUFFERING FROM THE EFFECTS OF SPOILED SAUSAGE AND JUST AS THE THREE JUDGE PANEL HAS REFUSED TO ADMIT INDEPENDENT TESTIMONY IN THE NOVICHOK CASE SO IT WAS IN THE EARLY SVERDLOVSK PROBE IN EACH CASE SCIENTISTS WERE FORCED TO REMAIN SILENT OR WERE HARASSED FOR HAVING SPOKEN OUT NO ONE WITH KNOWLEDGE OF THE ANTHRAX INCIDENT DARED TALK TO JOURNALISTS FOR MORE THAN A DECADE MESSRS MIRZAYANOV AND UGLEV WERE FIRED FROM THEIR JOBS WHILE THEIR SILENT COLLEAGUES REMAIN ON THE PAYROLL JOURNALISTS AND THEIR SOURCES WERE HARASSED IN BOTH INSTANCES THE SOURCES OF THE FIRST RUSSIAN REPORTER TO PROBE THE SVERDLOVSK INCIDENT ELEVEN YEARS AFTER THE FACT WERE SUBJECTED TO OFFICIAL HARASSMENT MOSCOW NEWS IZVESTIA AND NOVOYE VREMYA WHICH COVERED THE NOVICHOK STORY ALSO RECEIVED VISITS FROM THE FORMER K. G. B. WHY ARE THE RUSSIANS SO UPSET WITH MR. MIRZAYANOV HE IS ALLEGED TO HAVE REVEALED RESULTS OF AN ENTIRE PROGRAM OF SECRET WEAPONRY AND ACKNOWLEDGEMENT OF A SECRET WEAPON NOT ONLY WOULD FORCE RUSSIA TO PLACE NOVICHOK UNDER THE CHEMICAL WEAPONS CONVENTION AND THUS SCUTTLE THE PROGRAM BUT WOULD ALSO JEOPARDIZE HUNDREDS OF MILLIONS OF DOLLARS IN AMERICAN AND OTHER WESTERN AID THE DISSIDENT SCIENTISTS ARE UNANIMOUS THAT THE CHEMICAL GENERALS CANNOT BE TRUSTED TO DISMANTLE THE NERVE GAS DEVELOPMENT AND PRODUCTION FACILITIES OR EVEN TO DESTROY EXISTING STOCKS THE SCIENTISTS HAVE A WELL FOUNDED FEAR OF THE GENERALS' HISTORICAL DISREGARD FOR PUBLIC SAFETY MR. UGLEV IS ALSO CONCERNED THAT CORRUPT OFFICERS WILL SELL THE NOVICHOK FORMULA TO TERRORIST STATES AND ORGANIZATIONS ONCE THE FORMULA AND PROCESS ARE KNOWN HE SAYS NOVICHOK IS EASY TO PRODUCE WITH COMMERCIALLY AVAILABLE CHEMICALS MR. MIRZAYANOV HAS ALLEGED THAT WESTERN MONEY EARMARKED FOR CHEMICAL WEAPONS DESTRUCTION WILL BE COUNTERPRODUCTIVE HE SAID IN AN INTERVIEW PUBLISHED IN MOSCOW NEWS OUR GENERALS RAISED AN OUTCRY ALLEGING THAT RUSSIA WOULD NOT MANAGE TO DESTROY ITS CHEMICAL WEAPONS UNAIDED AND THAT WE NEED AT LEAST SIX HUNDRED MILLION DOLLARS THEY WANT TO GET THAT SUM THROUGH YELTSIN FROM THE U. S. A. QUOTE THE POINT HE ADDS IS TO FINANCE THE DESTRUCTION OF OBSOLESCENT STOCKS AND TO CARRY ON THE DEVELOPMENT OF BINARY WEAPONS MR. ZHELEZNYAKOV AGREED BEFORE HE DIED LAST SUMMER HE TOLD NOVOYE VREMYA THE GENERALS CANNOT BE TRUSTED WITH THE DESTRUCTION OF CHEMICAL WEAPONS THE MONEY RECEIVED FROM THE AMERICANS FOR THIS PURPOSE WILL DEFINITELY BE CHANNELED INTO THE DEVELOPMENT OF NEW AND MORE POWERFUL TOXIC SUBSTANCES MR. WALLER IS DIRECTOR OF INTERNATIONAL SECURITY AFFAIRS AT THE INTERNATIONAL FREEDOM FOUNDATION IN WASHINGTON IF THE NELLIE FOX SOCIETY HAD EXISTED TWENTY FIVE YEARS AGO GETTING LITTLE NELL ELECTED TO THE BASEBALL HALL OF FAME WOULD HAVE BEEN NO PROBLEM IF HE HAD NEEDED FOURTEEN VOTES ON THE EIGHTEEN MEMBER VETERANS COMMITTEE AS HE WILL WHEN THE GROUP MEETS ON FEBRUARY TWENTY FIFTH IN TAMPA FLORIDA HE'D HAVE HAD TWENTY OR THIRTY VOTES FOR SURE DA BOYS WOULDA SEEN TO IT BUT THINGS CHANGE AND NOT ALWAYS FOR THE BETTER SO THE PROSPECT OF ANOTHER YEAR IN IMMORTALITY LIMBO FOR THE LATE GREAT CHICAGO WHITE SOX SECOND BASEMAN IS REAL PHIL RIZZUTO THE OLD NEW YORK YANKEES SHORTSTOP WHO'S NOW A BROADCASTER IS CONSIDERED A SERIOUS THREAT TO COP THE SINGLE PLAYER SPOT THE VETERANS COMMITTEE CAN FILL ANNUALLY JOE GORDON THE FORMER YANK SECOND BASEMAN ROGER MARIS WHO HIT SIXTY ONE HOME RUNS FOR THE NINETEEN SIXTY ONE YANKEES AND GIL HODGES THE METS EX MANAGER ALSO ARE SAID TO BE IN THE RUNNING NEW YORKERS DO NOT LACK FOR CLOUT IN THESE MATTERS AND THAT'S TOO BAD SAYS LOUIS HEGEMAN THE CHICAGO LAWYER WHO'S A COFOUNDER OF THE FIVE YEAR OLD FOX SOCIETY QUOTE OUR CAUSE IS JUST QUOTE HEGEMAN DECLARES WE'D HATE TO SEE NELLIE DENIED AGAIN BECAUSE OF POLITICS GIVEN THE MAKEUP OF HEGEMAN'S GROUP THAT'S A STRANGE KIND OF COMPLAINT FOX SOCIETY ROLLS INCLUDE CHICAGO MAYOR RICHARD M. DALEY FORMER ILLINOIS GOVERNOR JAMES THOMPSON COOK COUNTY SHERIFF MICHAEL SHEAHAN AND STATE'S ATTORNEY JACK O'MALLEY ALSO ENOUGH JUDGES AND LAWYERS TO KEEP THE WORLD IN KNOTS FOR CENTURIES THEY AND SEVERAL HUNDRED OTHERS MEET A COUPLE OF TIMES A YEAR SITTING AROUND WEARING NINETEEN FIFTIES STYLE WHITE SOX CAPS REMINISCING ABOUT THEIR CITY'S GREAT SOUTH SIDE AND PLOTTING WAYS TO ELEVATE THEIR HERO WE DO SOME LOBBYING WITH VETERANS COMMITTEE MEMBERS BUT IT'S NOTHING LIKE THE OLD MACHINE DAYS HEGEMAN SAYS APOLOGETICALLY AMONG OTHER THINGS WE'RE BIPARTISAN WHICH CAN BE A HINDRANCE HEY WE EVEN HAVE A FEW CUBS FANS THE MOTIVATING FORCE BEHIND THE GROUP IS JACOB NELSON FOX WHO WAS BORN IN SAINT THOMAS PENNSYLVANIA ON CHRISTMAS DAY NINETEEN TWENTY SEVEN AND DIED IN BALTIMORE OF CANCER ON DECEMBER FIRST NINETEEN SEVENTY FIVE HE PLAYED BIG LEAGUE BASEBALL FOR NINETEEN SEASONS FOURTEEN OF THEM FROM NINETEEN FIFTY THROUGH NINETEEN SIXTY THREE WITH THE WHITE SOX HE WAS NICKNAMED LITTLE NELL AND THE MIGHTY MITE EVEN THOUGH AT FIVE FOOT TEN AND ONE HUNDRED SIXTY POUNDS HE WASN'T TINY ADD THE ENORMOUS CHAW OF TOBACCO HE ALWAYS CARRIED IN HIS CHEEK AFIELD AND HE WEIGHED A FEW POUNDS MORE NELLIE WAS VERY STRONG HEGEMAN VOLUNTEERS QUOTE GUYS WHO PLAYED WITH HIM SAY HE USED TO TURN OFF THE LOCKER ROOM SHOWERS AS A PRANK HE'D HAVE THE VALVE SCREWED SO TIGHT THAT THE ONLY ONE WHO COULD TURN IT BACK ON WAS BIG TED KLUSZEWSKI FOX WAS A THIRTEEN TIME PARTICIPANT IN THE ALL STAR GAME AND THE AMERICAN LEAGUE MOST VALUABLE PLAYER IN NINETEEN FIFTY NINE THE LAST YEAR THE WHITE SOX WON THE PENNANT HE HAD TWO THOUSAND SIX HUNDRED SIXTY THREE REGULAR SEASON HITS AND A LIFETIME BATTING AVERAGE OF ZERO POINT TWO EIGHT EIGHT HE STRUCK OUT ONLY TWO HUNDRED EIGHTEEN TIMES IN NINE THOUSAND TWO HUNDRED TWENTY THREE OFFICIAL TIMES AT BAT THAT RATIO OF FORTY TWO TO ONE IS THE THIRD BEST IN BASEBALL HISTORY TRAILING ONLY THAT OF JOE SEWELL AND LLOYD WANER FOX'S LIFETIME FIELDING PERCENTAGE WAS AN OUTSTANDING ZERO POINT NINE EIGHT FOUR HE HOLDS THE RECORD FOR MOST DOUBLE PLAYS BY AN AMERICAN LEAGUE SECOND BASEMAN NINE TIMES HE LED THE LEAGUE IN CHANCES ACCEPTED SHOWING HE DIDN'T ACHIEVE HIS FIELDING MARK BY STANDING STILL HE WAS A NOTABLE IRONMAN TOO MISSING JUST FIFTEEN GAMES OVER THE TEN SEASONS FROM NINETEEN FIFTY TWO THROUGH NINETEEN SIXTY ONE AND APPEARING IN SEVEN HUNDRED NINETY EIGHT CONSECUTIVE GAMES IN ONE STRETCH THAT NELL WAS ADMIRED BY HIS CONTEMPORARIES WAS SEEN MOST STRONGLY IN THE NUMBER OF VOTES HE RECEIVED FROM SPORTSWRITERS WHEN THOSE WORTHIES CONSIDERED HIM FOR HALL OF FAME MEMBERSHIP IN NINETEEN EIGHTY FIVE THE LAST YEAR HE COULD HAVE BEEN ELECTED VIA THAT ROUTE HE RECEIVED TWO HUNDRED NINETY FIVE VOTES OR SEVENTY FOUR POINT SIX SEVEN EIGHT PERCENT OF THOSE CAST JUST TWO SHY OF THE REQUIRED SEVENTY FIVE PERCENT NO ONE ELSE HAS COME THAT CLOSE AND NOT MADE IT MANY STILL MAINTAIN THAT FOX'S VOTE PERCENTAGE THAT YEAR SHOULD HAVE BEEN ROUNDED UP SO HE COULD HAVE BEEN ADMITTED NO MATTER HOW TALENTED OR WELL INTENTIONED THE BASEBALL WRITERS MIGHT BE THEY SHOULD NEVER BE ENTRUSTED WITH THE FINER POINTS OF ACCOUNTING THE FOX SOCIETY CONTENDS FOX'S BOOSTERS ARE EAGER TO COMPARE THEIR MAN'S CREDENTIALS WITH THOSE OF RIZZUTO WHOM THEY THINK FOX MUST BEAT TO GAIN ENTRY THIS YEAR FOX THEY NOTE PLAYED MORE YEARS THAN RIZZUTO NINETEEN TO THIRTEEN WAS A MORE FREQUENT ALL STAR THIRTEEN TIMES TO FIVE HAD OVER ONE THOUSAND MORE HITS AND HIGHER LIFETIME BATTING AND FIELDING AVERAGES THE MOST VOTES THE EX YANK EVER GOT FROM THE SPORTSWRITERS WAS ONE HUNDRED FORTY NINE OR FIFTY ONE PERCENT IN NINETEEN SEVENTY SIX SURE RIZZUTO PLAYED IN NINE WORLD SERIES TO FOX'S ONE BUT IT WASN'T NELLIE'S FAULT THAT PHIL HAD BETTER TEAMMATES THEY SAY THE MATTER OF MATES RUBS FOX'S BACKERS PARTICULARLY BECAUSE SOME BELIEVE THAT ONE HIS OLD WHITE SOX MANAGER AL LOPEZ HAS KEPT NELLIE FROM THE COOPERSTOWN N. Y. SHRINE THROUGH FAINT PRAISE LOPEZ'S VIEW IS IMPORTANT BECAUSE HE'S A VETERANS COMMITTEE MEMBER ALONG WITH FORMER OFFICIALS AND WRITERS AND EX PLAYERS TED WILLIAMS STAN MUSIAL MONTE IRVIN BILL WHITE YOGI BERRA AND PEE WEE REESE ALTHOUGH HE WON'T SAY HOW HE HAS VOTED OR WILL VOTE ON THE FOX CANDIDACY IT'S A SECRET BALLOT YOU KNOW LOPEZ NOW EIGHTY FIVE YEARS OLD AND LIVING NEAR TAMPA PROFESSES TO BE PERPLEXED BY THE CHARGE NELLIE WAS A REAL GOOD PLAYER FOR ME YOU CAN'T BLAME THE CHICAGO PEOPLE FOR WANTING HIM IN HE SAYS OF COURSE I HAD OTHER GOOD PLAYERS IN CHICAGO LIKE LUIS APARICIO EARLY WYNN AND SHERM LOLLAR AND DON'T FORGET JIMMY LANDIS HE WAS GOOD TOO QUOTE SO MAYBE NELLIE WON'T MAKE IT THIS YEAR EVEN THOUGH BY ALL RIGHTS HE SHOULD THAT WOULD NOT END THE BATTLE WE ARE IN THIS FOR THE LONG HAUL VOWS HEGEMAN IF YOU AREN'T PATIENT YOU AREN'T A WHITE SOX FAN AND IF FOX IS ELECTED THE SOCIETY WON'T LACK FOR FUTURE CAUSES LET ME TELL YOU ABOUT BILLY PIERCE HE SAYS NOW THERE WAS A REALLY GREAT PITCHER WHO EVERYBODY UNDERRATES ANNTAYLOR STORES CORPORATION NEW YORK SAID SALES FOR OWNED STORES ROSE NINE POINT THREE PERCENT IN THE FOUR WEEKS ENDED JANUARY TWENTY NINTH TO THIRTY POINT FIVE MILLION DOLLARS FROM TWENTY SEVEN POINT NINE MILLION DOLLARS WHILE OWNED SAME STORE SALES FELL ONE POINT FOUR PERCENT TOTAL SALES FOR THE PERIOD ROSE SIX PERCENT TO THIRTY POINT FIVE MILLION DOLLARS FROM TWENTY EIGHT POINT SEVEN MILLION DOLLARS INCLUDING LEASED SHOE DEPARTMENT SALES OF EIGHT HUNDRED SIXTY FOUR THOUSAND DOLLARS IN THE YEAR AGO PERIOD THE LEASED SHOE DEPARTMENT WAS PHASED OUT EFFECTIVE FEBRUARY FIRST NINETEEN NINETY THREE TOTAL SAME STORE SALES WERE DOWN FOUR PERCENT IN THE PERIOD FOR THE FISCAL YEAR ENDED JANUARY TWENTY NINTH SALES FOR OWNED STORES ROSE NINE PERCENT TO FIVE HUNDRED ONE POINT SIX MILLION DOLLARS FROM FOUR HUNDRED SIXTY POINT TWO MILLION DOLLARS TOTAL SALES IN THE LATEST FISCAL YEAR ROSE SEVEN POINT ONE PERCENT FROM FOUR HUNDRED SIXTY EIGHT POINT FOUR MILLION DOLLARS THE PREVIOUS YEAR WHICH INCLUDED LEASED SHOE DEPARTMENT SALES OF EIGHT POINT TWO MILLION DOLLARS TOTAL SALES AND OWNED STORE SALES WERE THE SAME IN THE LATEST YEAR ANNTAYLOR IS A WOMEN'S SPECIALTY RETAILER THAT OPERATES TWO HUNDRED THIRTY ONE STORES IN THIRTY EIGHT STATES VALUEVISION INTERNATIONAL INCORPORATED MINNEAPOLIS SAID IT PLANS TO LAUNCH A ONE HUNDRED THIRTY FOUR MILLION DOLLAR TWO STEP TENDER OFFER FOR NATIONAL MEDIA CORPORATION WHICH SPURNED A SLIGHTLY LOWER BID LAST WEEK VALUEVISION THE NATION'S THIRD LARGEST HOME SHOPPING NETWORK SAID IT PLANS BY WEDNESDAY TO OFFER TEN DOLLARS AND FIFTY CENTS A SHARE IN CASH FOR FIVE POINT EIGHT THREE MILLION SHARES OF NATIONAL MEDIA A PHILADELPHIA BASED TELEVISION MARKETER VALUEVISION SAID THAT BLOCK PLUS THE ONE POINT TWO MILLION SHARES IT ALREADY OWNS WOULD REPRESENT FIFTY POINT TWO PERCENT OF NATIONAL MEDIA VALUEVISION SAID IT PLANS TO THEN OFFER TEN DOLLARS AND FIFTY CENTS IN VALUEVISION STOCK FOR EACH OF THE REMAINING NATIONAL MEDIA SHARES NATIONAL MEDIA HAD REJECTED A TEN DOLLAR A SHARE OFFER BY VALUEVISION AS INADEQUATE NATIONAL MEDIA EXECUTIVES COULDN'T BE REACHED FOR COMMENT VALUEVISION SAID ITS OFFERING IS SUBJECT TO AMONG OTHER THINGS FINANCING AND NATIONAL MEDIA NEUTRALIZING A PREFERRED STOCK PURCHASE RIGHTS PLAN THE BUSINESS ROUNDTABLE'S OVERWHELMING VOTE AGAINST SUPPORTING THE CLINTON HEALTH CARE PROPOSAL DESERVES SOME ATTENTION FOR WHAT IT SAYS ABOUT THIS ISSUE AND MORE GENERALLY ABOUT BUSINESS'S DEALINGS WITH WASHINGTON UP TO NOW THERE'S OFTEN BEEN A DEMARCATION LINE BETWEEN BIG AND SMALL BUSINESS ON ISSUES LIKE THIS ONE THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE SMALL BUSINESS LOBBY HAS COME TO BE VIEWED AS THE MAIN OPPONENT OF GOVERNMENT EXPANSIONS WHILE THE BUSINESS ROUNDTABLE HISTORICALLY HAS BEEN SUSPECTED OF AN INSTINCT TO CUT A DEAL ABSORB THE COSTS AND LET THEIR SMALLER COMPETITION FIGURE OUT HOW TO SURVIVE THE ADDED BURDENS THE CLINTON ADMINISTRATION SEEMS TO HAVE BEEN SURPRISED TO DISCOVER THAT THE ROUNDTABLE'S NORMALLY ROUND HEELS ARE SUDDENLY DUG IN WE KNOW THE CLINTONITES DISLIKE THE NINETEEN EIGHTIES BUT MAYBE THEY SHOULD HAVE BEEN PAYING CLOSER ATTENTION TO WHAT WAS GOING ON THEN IN CORPORATE AMERICA BETTER YET RATHER THAN GIVING OFF THE IMPRESSION THAT THEY'RE TOO SMART TO TALK TO BUSINESSMEN WE'RE THINKING OF THE EYES ONLY WHITE HOUSE HEALTH CARE TASK FORCE THEY MIGHT HAVE SPENT SOME TIME WITH THE C. E. O.S NOW RUNNING THESE COMPANIES THE KEY THOUGH WOULD HAVE BEEN TO TALK TO THEM ABOUT BUSINESS NOT THE BLUE SKY OF PUBLIC POLICY THEY'D HAVE LEARNED THAT THE OLD STYLE CORPORATE EMPIRE BUILDERS ARE LARGELY GONE DURING THE NINETEEN EIGHTIES CORPORATE AMERICA WAS FORCED TO RESTRUCTURE DOWNSIZE AND ADOPT SOME NEW WAYS OF DOING BUSINESS THE NEW BREED OF C. E. O.S WHO'VE GONE THROUGH THOSE WRENCHING CHANGES ARE OBSESSED WITH CONTROLLING COSTS PRESIDENT CLINTON AND HILLARY CLINTON BOTH MADE PERSONAL APPEALS TO THE ROUNDTABLE SO DID SUPERWONK IRA MAGAZINER THEY APPARENTLY DIDN'T SHIFT A SINGLE VOTE ONE BIG REASON WE SUSPECT IS THAT THE PITCH HAD NO CREDIBILITY ON THE COST SIDE ONE OF THE MOST IMPORTANT LESSONS BUSINESS LEADERS HAVE BEEN FORCED TO LEARN THE PAST TWENTY YEARS IS MANDATES CONCEAL COSTS AND SO TEND TO PROLIFERATE LIKE MUSHROOMS STATE AND LOCAL GOVERNMENTS HAVE LONG BEEN BURDENED BY FEDERAL MANDATES THAT DRIVE UP BUDGETS AND RESTRICT FLEXIBILITY THEY ALSO KNOW THAT THE FEDS LARGELY TURN A DEAF EAR TO COMPLAINTS ABOUT ENFORCEMENT ABSURDITIES AND THEY RARELY SUFFER POLITICALLY FOR THE DAMAGE MANDATES CAUSE MEMBERS OF THE ROUNDTABLE AND THE U. S. CHAMBER OF COMMERCE WHICH ALSO DECLARED ITS OPPOSITION TO THE CLINTON PLAN YESTERDAY SAY THEY ARE CONVINCED THE EMPLOYER HEALTH INSURANCE MANDATE IN THE CLINTON PLAN WOULD WORK THE SAME WAY BUSINESS WOULD BECOME IN EFFECT THE TAX COLLECTOR FOR THE HEALTH CARE STATE WHEN THE SYSTEM'S FINANCING PROVED INADEQUATE PRICE CONTROLS WOULD BE TIGHTENED AND THE PLAN'S INSURANCE QUOTE ALLIANCES QUOTE WOULD START RATIONING SOME TYPES OF CARE THERE'S ANOTHER SIGNIFICANT SHIFT EVIDENT IN THE ROUNDTABLE OUTCOME ON MOST SUCH ISSUES IT'S OFTEN THE CORPORATIONS' WASHINGTON REPS WHO SHAPE THEIR PUBLIC POSTURE THESE FOLKS ARE BELTWAY LIFERS MANY ARE EX CONGRESSIONAL STAFFERS AND HISTORICALLY FEW EXECUTIVES WERE WILLING TO IGNORE THE ROAD MAPS THE REPS DREW TO STEER FIRMS AROUND LEGISLATIVE ROAD HAZARDS AND OTHER ARCANA BUT WE'RE TALKING HERE ABOUT REPAVING ONE SEVENTH OF THE ECONOMY IRA MAGAZINER TOLD THE ROUNDTABLE'S WASHINGTON REPS THAT THE CENTER OF THE HEALTH CARE DEBATE LIES BETWEEN BETWEEN THE COOPER BILL AND CANADA NAMELY CLINTON THAT'S THE KIND OF COMPROMISE REPS HAVE SOLD TO C. E. O.S IN THE PAST BUT IT APPEARS THIS ISSUE'S IMPLICATIONS ARE TOO VAST TO ABSORB THE COSTS OF ANOTHER BELTWAY DEAL WE HOPE THAT NOW THE ROUNDTABLE'S MEMBERS WILL PUT THE HEALTH CARE PLAN DRAFTED BY DEMOCRATIC REPRESENTATIVE JIM COOPER UNDER THE SAME GLASS THEY USED TO FLYSPECK THE CLINTON PLAN SOME MEMBERS PRIVATELY AGREE THAT COOPER CONTAINS PROVISIONS THAT COULD EXPAND BUREAUCRACY AND MANDATES THOUGH IT AVOIDS THE ONE SIZE FITS ALL CLINTON APPROACH IT LOOKS THOUGH AS IF FOLKS ON BOTH SIDES OF THE ISSUE LEARNED A FEW THINGS THIS WEEK IT'D BE NICE TO THINK THAT A LOT OF BELTWAY FOLKS LEARNED WHAT THE BUSINESS COMMUNITY DISCOVERED IN THE EIGHTIES YOU GET PUNISHED FOR TRYING TO HIDE OR IGNORE YOUR REAL COSTS BLUE DOLPHIN ENERGY COMPANY SAID IT EXPECTS TO REPORT A PRETAX GAIN OF EIGHT HUNDRED NINETY THOUSAND DOLLARS IN THE FIRST QUARTER IN THE YEAR EARLIER QUARTER THE COMPANY HAD NET INCOME OF TWO HUNDRED EIGHTY NINE THOUSAND SEVEN HUNDRED FIFTY TWO DOLLARS OR ONE CENT A SHARE ON REVENUE OF NINE HUNDRED SEVENTY NINE THOUSAND DOLLARS THE RESULTS INCLUDED A GAIN OF TWO HUNDRED EIGHTY EIGHT THOUSAND EIGHT HUNDRED ELEVEN DOLLARS THE OIL AND NATURAL GAS COMPANY IN HOUSTON SAID THE NINETEEN NINETY FOUR GAIN RESULTS FROM ITS RECENT DEBT RESTRUCTURING WHICH LOWERED ITS INTEREST RATE THE COMPANY SAID IT WAS ABLE TO RETIRE THE DEBT BECAUSE IT ARRANGED A TEN MILLION DOLLAR LOAN SO IT COULD RETIRE AND CONSOLIDATE EXISTING DEBT AND FINANCE FUTURE WORKING CAPITAL NEEDS INCLUDING ACQUISITION AND DEVELOPMENT OF ASSETS GENERAL SIGNAL CORPORATION REPORTED FOURTH QUARTER NET INCOME OF FOUR POINT NINE MILLION DOLLARS DRIVEN BY CONTINUED COST CUTTING AND A PICKUP IN ORDERS AND SALES A YEAR EARLIER THE COMPANY HAD A LOSS OF THIRTY SEVEN POINT FIVE MILLION DOLLARS FOURTH QUARTER NET INCOME WAS TEN CENTS A SHARE COMPARED WITH LAST YEAR'S LOSS OF EIGHTY NINE CENTS A SHARE THE FOURTH QUARTER INCLUDED A NUMBER OF ONE TIME CHARGES THE COMPANY SAID EARNINGS ON A CONTINUING BASIS AFTER EXCLUDING SPECIAL CHARGES CLIMBED FOURTEEN PERCENT TO FIFTY SEVEN CENTS A SHARE QUOTE OVERALL THE QUARTER WAS OUR BEST FROM AN ONGOING BUSINESS BASIS IN OVER TWO YEARS REFLECTING CONTINUED DISCIPLINE IN COST CONTAINMENT AND ASSET MANAGEMENT QUOTE SAID EDMUND M. CARPENTER CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY IN STAMFORD CONNECTICUT MAKES EQUIPMENT AND INSTRUMENTS FOR PROCESS CONTROL ELECTRICAL AND OTHER INDUSTRIES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SHARES OF GENERAL SIGNAL CLOSED AT THIRTY SIX DOLLARS AND FIFTY CENTS UP TWENTY FIVE CENTS THE CLINTON ADMINISTRATION IS SEEKING TO BOOST SPENDING ON FEDERAL JOB TRAINING PROGRAMS BY THIRTEEN PERCENT TO MORE THAN SEVEN BILLION DOLLARS FOCUSING LARGELY ON MIDDLE CLASS UNEMPLOYED WORKERS BUT ALSO ADDING FUNDS FOR THE INNER CITY POOR THE LABOR DEPARTMENT WHICH ADMINISTERS THE PROGRAMS WOULD BE ONE OF THE WINNERS IN THE ADMINISTRATION'S FISCAL NINETEEN NINETY FIVE BUDGET TO BE RELEASED MONDAY BUT IT ISN'T CLEAR WHAT WILL HAPPEN TO TRAINING PROGRAMS RUN BY OTHER AGENCIES OR WHAT PROGRAMS WITHIN THE LABOR DEPARTMENT MIGHT BE CUT TO HELP PAY FOR THE ROUGHLY EIGHT HUNDRED MILLION DOLLAR INCREASE IN FEDERAL TRAINING FUNDS THE CORE OF THE ADMINISTRATION'S NEW TRAINING INITIATIVES IS A QUOTE DISLOCATED WORKER PROGRAM QUOTE AIMED AT HELPING PEOPLE PERMANENTLY LAID OFF BECAUSE OF A CLOSED FACTORY CORPORATE STREAMLINING OR IMPORT COMPETITION THAT PROGRAM IS BUDGETED AT MORE THAN TWO BILLION DOLLARS FOR THE COMING FISCAL YEAR AND IS PROJECTED TO COST THREE BILLION DOLLARS ANNUALLY WHEN FULLY IMPLEMENTED THE DISLOCATED WORKER FUND WOULD COMBINE SIX EXISTING FUNDING STREAMS CURRENTLY BUDGETED AT ABOUT ONE POINT FIVE BILLION DOLLARS BUT THE LABOR DEPARTMENT'S FOCUS ON THE DISLOCATED WORKER PROGRAM IS RAISING QUESTIONS ABOUT WHETHER THE WHITE HOUSE IS SHIFTING THE FOCUS OF FEDERAL JOB TRAINING TO THE MIDDLE CLASS FROM THE POOR ADMINISTRATION OFFICIALS SENSITIVE TO SUCH CRITICISM SAID THE CONTENTION ISN'T TRUE LABOR SECRETARY ROBERT REICH REFUSED TO TALK ABOUT THE SPECIFICS OF THE BUDGET BUT ARGUED THAT MONEY WOULD BE DOLED OUT FAIRLY THIS ISN'T A ZERO SUM GAME MR. REICH SAID IN AN INTERVIEW THE PRESIDENT WANTS TO EXPAND PROGRAMS FOR THE DISADVANTAGED AS WELL AS FOR DISLOCATED WORKERS HE NOTED THAT THOSE LAID OFF WORKERS ELIGIBLE FOR THE DISLOCATED WORKER PROGRAM ARE BOTH DISADVANTAGED AND WORKING CLASS OR LOWER MIDDLE CLASS A LOOK AT FIGURES IN THE PRESIDENT'S PLANNED BUDGET SHOWS THAT SPENDING ON PROGRAMS FOR YOUTHS WHO NEED TO BE POOR TO QUALIFY FOR MOST PROGRAMS WOULD GROW TWELVE PERCENT NEXT YEAR ACCORDING TO OFFICIALS WHO HAVE SEEN THE BUDGET PROPOSAL IN ALL YOUTH PROGRAMS MOSTLY TARGETED AT THE POOR WILL INCREASE TO THREE POINT ONE BILLION DOLLARS WHILE SPENDING ON PROGRAMS FOR ADULTS WOULD GAIN FOURTEEN PERCENT TO FOUR POINT ONE BILLION DOLLARS LARGELY THROUGH THE DISLOCATED WORKER PROGRAM FOR EXAMPLE JOB CORPS A PROGRAM THAT TAKES POOR TEENAGERS OUT OF THE INNER CITY AND PUTS THEM IN A BOOT CAMP TYPE ENVIRONMENT WOULD GET AN ELEVEN PERCENT BUDGET INCREASE TO ONE POINT ONE SIX BILLION DOLLARS UNDER THE PRESIDENT'S PROPOSAL THE SUMMER YOUTH EMPLOYMENT PROGRAM WOULD GAIN ONE HUNDRED SIXTY EIGHT MILLION DOLLARS OR NINETEEN PERCENT TO ONE POINT OH SIX BILLION DOLLARS AND THE JOB TRAINING PARTNERSHIP ACT PROGRAM FOR POOR ADULTS WOULD GAIN ONE HUNDRED FORTY TWO MILLION DOLLARS OVER ITS CURRENT BUDGET AUTHORITY OF ALMOST ONE BILLION DOLLARS AT THE SAME TIME HOWEVER THE PROGRAM FOR DISADVANTAGED YOUTH WHICH STUDIES HAVE SHOWN FELL SHORT OF EXPECTATIONS WOULD BE CUT BY ABOUT NINE PERCENT OR SIXTY MILLION DOLLARS TO JUST BELOW SIX HUNDRED MILLION DOLLARS ADVOCATES FOR EXPANSIONS OF JOB TRAINING ARE WARILY AWAITING MONDAY'S BUDGET ANNOUNCEMENT CLEARLY THE AMOUNT OF MONEY THEY'RE WILLING TO PUT IN IS ONE OF THE CHIEF DEFINING CHARACTERISTICS OF WHETHER THIS PROGRAM IS GOING TO BE A GOOD ONE SAID LAWRENCE MISHEL RESEARCH DIRECTOR OF THE ECONOMIC POLICY INSTITUTE A WASHINGTON THINK TANK FUNDED IN PART BY UNIONS IF THERE ISN'T ENOUGH MONEY THEN THERE IS A HOLLOW PROMISE WITH ENOUGH MONEY IT COULD BE A REAL ADVANCE IN OUR LABOR MARKET POLICIES QUOTE A. E. A. INVESTORS INCORPORATED A NEW YORK INVESTMENT FIRM WITHDREW ITS FIVE HUNDRED SIXTY FIVE MILLION DOLLAR OFFER TO PURCHASE TWO DIVISIONS OF KLOSTER CRUISE LIMITED CORAL GABLES FLORIDA A. E. A. SAID THE ACQUISITIONS WOULDN'T FIT WITH ITS INVESTMENT GOALS QUOTE WITHIN THE FINANCIAL FRAMEWORK PROPOSED FOR THE TRANSACTION QUOTE IN DECEMBER A. E. A. SAID IT SIGNED A PRELIMINARY AGREEMENT TO PURCHASE ROYAL VIKING LINE AND ROYAL CRUISE LINE TWO OF KLOSTER'S UNITS A. E. A. HADN'T YET DONE DUE DILIGENCE ON THE TRANSACTION KLOSTER IS OWNED BY THE OSLOCRUISE AND FERRY CONCERN VARD AS WHILE KLOSTER HAD SAID THE SALES WOULD ALLOW THE COMPANY TO REDUCE DEBT AND MODERNIZE OTHER LINES IT SAID YESTERDAY THAT EARNINGS WILL BE HELPED BY THE RETENTION OF THE DIVISIONS BECAUSE BOOKINGS ARE STRONGER THAN THOSE FROM PRIOR YEARS PHOENIX LASER SYSTEMS INCORPORATED SAID IT INTENDS TO CONTEST INVOLUNTARY BANKRUPTCY PROCEEDINGS FILED AGAINST IT BY TWO FORMER EMPLOYEES AND MICRODYNE INCORPORATED PHOENIX BASED IN FREMONT CALIFORNIA SAID IT HADN'T RECEIVED FORMAL NOTIFICATION OF THE JANUARY THIRTY FIRST FILING BUT CALLED IT QUOTE A SPURIOUS AND MALICIOUS ATTEMPT TO DISCREDIT THE COMPANY QUOTE TRADING IN THE COMPANY'S SHARES WAS HALTED BY THE AMERICAN STOCK EXCHANGE YESTERDAY AFTER PHOENIX DISCLOSED THE FILING THE COMPANY WHICH DEVELOPS INTEGRATED LASER SYSTEMS FOR MEDICAL AND INDUSTRIAL USE SAID IT LEARNED THE FORMER EMPLOYEES' CLAIM WAS BASED ON GOLDEN PARACHUTES FOR SENIOR EMPLOYEES WHICH THE COMPANY SAID HAD BEEN RESCINDED BY ITS BOARD PHOENIX SAID IT HAD NO OWNERSHIP INTEREST IN MICRODYNE A COMMUNICATIONS AND LOCAL AREA NETWORK CONCERN BASED IN ESCONDIDO CALIFORNIA MICRODYNE OFFICIALS COULDN'T BE REACHED FOR COMMENT GLIMCHER REALTY TRUST SAID AN UNDERWRITING GROUP LED BY PAINEWEBBER INCORPORATED EXERCISED AN OPTION TO PURCHASE TWO MILLION THREE HUNDRED SEVENTY THREE THOUSAND SEVEN HUNDRED FIFTY COMMON SHARES FROM THE COMPANY AT TWENTY DOLLARS AND TWENTY FIVE CENTS A SHARE THE OPTION WAS GRANTED TO COVER OVER ALLOTMENTS INCURRED IN CONNECTION WITH GLIMCHER REALTY'S RECENTLY COMPLETED INITIAL PUBLIC OFFERING GLIMCHER REALTY WILL RECEIVE ABOUT FORTY FIVE MILLION DOLLARS AFTER COMMISSIONS AND UNDERWRITING DISCOUNTS THE PROCEEDS WILL BE APPLIED TO REDUCE DEBT UNDER THE COLUMBUS OHIO COMPANY'S ONE HUNDRED MILLION DOLLAR CREDIT FACILITY TO ABOUT THIRTY THREE MILLION DOLLARS FROM SEVENTY EIGHT MILLION DOLLARS THE NET PROCEEDS RECEIVED BY THE COMPANY FROM ITS I. P. O. INCLUDING THE EXERCISE OF THE OVER ALLOTMENT OPTION WERE THREE HUNDRED FORTY TWO POINT TWO MILLION DOLLARS WHICH HAS BEEN APPLIED PARTIALLY TO THE ACQUISITIONS OF SHOPPING CENTERS AND TO THE REDUCTION OF DEBT GLIMCHER IS A REAL ESTATE INVESTMENT TRUST RECENTLY FORMED TO CONTINUE THE BUSINESS AND OPERATIONS OF GLIMCHER COMPANY NALCO CHEMICAL COMPANY AND EXXON CORPORATION'S CHEMICAL UNIT SAID THEY TENTATIVELY AGREED TO FORM AN ENERGY CHEMICALS JOINT VENTURE THE VENTURE WILL INCLUDE NALCO'S U. S. PETROLEUM CHEMICALS DIVISION SOME SEGMENTS OF NALCO'S INTERNATIONAL PETROLEUM CHEMICALS BUSINESS AND EXXON CHEMICAL COMPANY'S ENERGY CHEMICALS BUSINESS NALCO IS BASED IN NAPERVILLE ILLINOIS EXXON IS BASED IN NEW YORK THE VENTURE TO BE NAMED NALCO SLASH EXXON ENERGY CHEMICALS IS SLATED TO BEGIN OPERATION BY THE MIDDLE OF THIS YEAR SUBJECT TO REGULATORY APPROVALS AND A DEFINITIVE AGREEMENT THE VENTURE WILL MAKE CHEMICALS USED IN OIL EXPLORATION AND PRODUCTION IN A RELATED MOVE NALCO SAID IT SIGNED A LETTER OF INTENT TO SELL ITS FREEPORT TEXAS PLANT AND ITS AUTOMOTIVE PAINT SPRAY BOOTH BUSINESS TO PITTSBURGH BASED P. P. G. INDUSTRIES INCORPORATED FED ACTION TO RAISE INTEREST RATES STILL MAY COME SOON BUT WHEN IS UNCERTAIN SOME FED WATCHERS THOUGHT THE MOVE WAS HAPPENING YESTERDAY MORNING BUT FED POLICY MAKERS DIDN'T EVEN BEGIN THEIR TWODAY MEETING UNTIL AFTER LUNCH IF THEY DON'T ACT TODAY FED BANK PRESIDENTS WANT THE CALL TO BE MADE AT ANOTHER MEETING RATHER THAN GIVE FED CHIEF GREENSPAN INTERIM AUTHORITY TO MAKE THE MOVE HIMSELF THE NEXT POLICYMAKERS MEETING IS SET FOR MARCH TWENTY SECOND THE STRENGTHENING ECONOMY AND A RESTLESS BOND MARKET ADD TO PRESSURE TO RAISE RATES FOR THE FIRST TIME IN FIVE YEARS BUT CONFUSION OVER MARKET REACTION TO TODAY'S JOBLESS RATE NEW FED DATA SHOWING THAT INDUSTRY IS STILL OPERATING SHY OF CAPACITY AND A DESIRE TO SEE HOW THE FIRST QUARTER IS SHAPING UP COULD LEAD THE FED TO WAIT ABSENT FROM THIS WEEK'S MEETING DEPARTING FED MEMBERS ANGELL AND MULLINS TWO BACKERS OF HIGHER RATES PRESSURE GROWS FOR MORE CLINTON ACTION TO RESTORE HAITI'S DEMOCRACY THE HAITIAN MILITARY REMAINS IN CHARGE DESPITE U. S. PREDICTIONS THAT SANCTIONS WOULD EXHAUST THEIR FUEL SUPPLIES BY NOW NEW YORK REPRESENTATIVE OWENS HEAD OF THE BLACK CAUCUS'S HAITIAN TASK FORCE PLANS TO CALL A CONFERENCE OF U. S. BLACK LEADERS ON THE ISSUE HE CALLS U. S. ACTIONS QUOTE WIMPISH QUOTE AND WARNS OF A NEW FLOOD OF REFUGEES U. S. OFFICIALS CLAIM THAT THE POLICY OF APPLYING PRESSURE SHOWS SIGNS OF SPLITTING HAITI'S MILITARY LEADERS THE U. S. AND OTHERS MAY PROPOSE MORE UNITED NATION SANCTIONS BY NEXT WEEK UNDER CONSIDERATION EXPANDING THE LIST OF HAITIANS WHOSE FOREIGN ASSETS ARE FROZEN BUT NO MILITARY MOVES ARE CONTEMPLATED THE U. N. ALSO MAY PUSH FOR A WORLD WIDE TRADE EMBARGO COOPER FACES NEW ATTACKS AS HIS HEALTH CARE REFORM PLAN GAINS MOMENTUM ADDING TO THIS WEEK'S BUSINESS ROUNDTABLE BACKING THE NATIONAL ASSOCIATION OF MANUFACTURERS AND FOUR OTHER BUSINESS GROUPS PRAISE THE TENNESSEE DEMOCRAT FOR WORKING WITH G. O. P. SENATOR CHAFEE ON A COMPROMISE COOPER WILL ADDRESS THE N. A. M. TODAY AND IN A MOVE SURE TO ANGER THE WHITE HOUSE HE WILL SPEAK TO ROSS PEROT'S UNITED WE STAND AMERICA TOMORROW IN DALLAS CALIFORNIA REPRESENTATIVE WAXMAN TELLS COOPER THAT BUSINESS GROUPS ARE JUST USING HIM TO UNDERCUT CLINTON'S PLAN CLINTON AIDES AND CONGRESSIONAL CRITICS CHARGE THAT COOPER'S BILL WOULD MEAN HIGHER TAXES ON THE MIDDLE CLASS AN ANALYSIS BY CITIZEN ACTION SHOWS THAT MORE THAN THIRTY PERCENT OF THE MONEY COOPER RAISED FROM LARGE DONORS IN THE SECOND HALF OF NINETEEN NINETY THREE WAS FROM HEALTH INTERESTS CALIFORNIA DEMOCRATIC REPRESENTATIVE STARK SAYS HE WOULD RATHER THROW UP THAN VOTE FOR COOPER'S BILL GETTING EVEN ANGERED BY THE BUSINESS ROUNDTABLE'S SUPPORT OF COOPER'S PLAN OVER CLINTON'S THE WHITE HOUSE MAPS NEW ATTACKS AGAINST INSURANCE COMPANIES WHICH IT CLAIMS ORCHESTRATED THE DEFEAT THOSE WHO LED THE FIGHT AGAINST US KNOW WE'RE NOT HAPPY THEY'LL BE REMINDED OF THAT FROM TIME TO TIME SAYS CLINTON AIDE JEFF ELLER GUNS AND DRUGS CLINTON WILL TAKE A HIGH PROFILE ON BOTH ISSUES AS CONGRESS WRAPS UP CRIME LEGISLATION HE WILL PROPOSE AN ANTIGUN INITIATIVE THAT WOULD GIVE PUBLICHOUSING DEVELOPMENTS AUTHORITY TO BAN GUNS ON THEIR PROPERTIES HE ALSO INTENDS TO DETAIL AN ANTIDRUG POLICY THAT WILL PROPOSE MORE MONEY FOR TREATMENT CLINTONITES SPLIT OVER WHEN TO INTRODUCE LEGISLATION TO APPROVE THE WORLD TRADE AGREEMENT U. S. TRADE REPRESENTATIVE KANTOR'S OFFICE FAVORS EARLY MAY SOON AFTER THE PACT IS SIGNED TO MINIMIZE MOVES TO ATTACH CONDITIONS BUT THE WHITE HOUSE HESITATES FOR FEAR OF SLOWING HEALTH REFORM POSTSCRIPT PAPERS OF FORMER FED CHAIRMAN ARTHUR BURNS REVEAL A NINETEEN SEVENTY FOUR MEMO FROM FED SPOKESMAN JOSEPH COYNE ADVISING BURNS TO CALL WASHINGTON POST PUBLISHER KATHARINE GRAHAM TO COMPLAIN ABOUT COLUMNIST NICHOLAS VON HOFFMAN COYNE REPORTED THAT THEN POST BUSINESS EDITOR HOBART ROWAN AGREED IT WOULD BE AN EXCELLENT IDEA ROWAN SAYS HE DOESN'T REMEMBER THE MATTER PEROT PLOTS STRATEGY FOR PUTTING HIS IMPRINT ON THIS YEAR'S ELECTIONS THE TEXAS BILLIONAIRE WANTS TO INFLUENCE HOUSE RACES BUT CAN'T ENDORSE CANDIDATES AND KEEP THE TAX EXEMPT STATUS FOR UNITED WE STAND AMERICA SOME PEROT FOLLOWERS TALK OF RUNNING AS INDEPENDENTS BUT FOR PEROTISTAS TO HAVE AN IMPACT THEY'RE BETTER OFF TELLING PEOPLE TO VOTE AGAINST ALL INCUMBENTS SAYS POLLSTER FRANK LUNTZ PEROT'S COURSE MAY BECOME CLEARER TODAY WHEN HE KICKS OFF A MEETING OF HIS GROUP'S STATE LEADERS IN DALLAS THEY MUST DECIDE HOW TO DIVIDE EFFORTS BETWEEN PUSHING THEIR POLITICAL REFORM AGENDA AND LOBBYING FOR HEALTH CARE REFORM THE INVITATION TO REPRESENTATIVE COOPER MAY SET THE STAGE FOR STEPPED UP ATTACKS ON THE CLINTON PLAN PEROT'S BROADER CHALLENGE IS TO SHOW THAT HE STILL LEADS A BIG ARMY BACKERS ARE QUOTE SPLINTERING QUOTE AS HIS POPULARITY FADES POLLSTER LUNTZ SAYS MINOR MEMOS THE NEW HOT SELLING NESTING DOLL IN MOSCOW FEATURES U. S. PRESIDENTS IT GOES FROM SMALLEST FIGURE JOHN F. KENNEDY TO THE LARGEST OUTSIDE DOLL HILLARY RODHAM CLINTON CLINTON POLITICAL STRATEGIST JAMES CARVILLE PLANS A POPULIST DARK AGES WEEKEND TO COUNTER THE ELITIST RENAISSANCE WEEKEND THE PRESIDENT ATTENDS ATTENDEES AT THE SPOUSES' COUNTER DINNER TO THE BANQUET HELD BY THE ALFALFA CLUB WHICH ADMITTED THREE WOMEN THIS YEAR NUMBERED MORE THAN FIFTY FEMALES AND ERIC TARLOFF HUSBAND OF CLINTON ECONOMIST LAURA TYSON MAXTOR CORPORATION SAID IT WOULD LAY OFF FIVE HUNDRED EMPLOYEES AS PART OF CORPORATE RESTRUCTURING THAT CAUSED THE DISK DRIVE MAKER TO TAKE AN EIGHTY EIGHT POINT FOUR MILLION DOLLAR CHARGE AGAINST THIRD QUARTER EARNINGS CURRENTLY THE SAN JOSE CALIFORNIA COMPANY HAS SEVEN THOUSAND EIGHT HUNDRED EMPLOYEES INCLUDING THE CHARGE WHICH TOTALED THREE DOLLARS A SHARE THE COMPANY SAID ITS NET LOSS FOR THE PERIOD ENDED DECEMBER TWENTY FIFTH WAS ONE HUNDRED TWENTY ONE POINT THREE MILLION DOLLARS OR FOUR DOLLARS AND TWELVE CENTS A SHARE A YEAR EARLIER MAXTOR EARNED EIGHTEEN POINT SIX MILLION DOLLARS OR FIFTY NINE CENTS A SHARE REVENUE DECLINED TO THREE HUNDRED EIGHTY ONE POINT ONE MILLION DOLLARS FROM FOUR HUNDRED TWO POINT SIX MILLION DOLLARS MAXTOR ONE OF SEVERAL DRIVE MAKERS HURT BY FIERCE COMPETITION IN THE FAST MOVING BUSINESS SAID IT WILL PHASE OUT THE HIGH PERFORMANCE DISK DRIVES THAT WERE ITS ORIGINAL SPECIALITY INSTEAD THE COMPANY WILL FOCUS ON LESS EXPENSIVE DRIVES USED WITH DESKTOP COMPUTERS A MAXTOR SPOKESMAN SAID MOST OF THE COMPANY'S PRODUCT DEVELOPMENT WORK WILL BE CONCENTRATED AT FACILITIES IN LONGMONT COLORADO AND PHASED OUT OF SAN JOSE MAXTOR ALSO ANNOUNCED COMPLETION OF A PREVIOUSLY ANNOUNCED SALE OF A FORTY PERCENT INTEREST IN THE COMPANY TO SOUTH KOREA'S HYUNDAI ELECTRONICS INDUSTRY COMPANY AND SEVERAL RELATED MEMBERS OF THE HYUNDAI BUSINESS GROUP FOR ONE HUNDRED FIFTY MILLION DOLLARS CONSOLIDATED EDISON COMPANY STANDARD AND POOR'S CORPORATION SAID IT LOWERED ITS RATINGS ON ABOUT FOUR POINT FIVE BILLION DOLLARS OF THIS UTILITY'S SECURITIES THE RATING AGENCY SAID IT DOWNGRADED CON ED'S SENIOR SECURED DEBT TO DOUBLE A MINUS FROM DOUBLE A ITS SENIOR UNSECURED DEBT AND PREFERRED STOCK TO SINGLE A PLUS FROM DOUBLE A MINUS AND ITS PREFERENCE STOCK TO SINGLE A FROM SINGLE A PLUS S. AND P. SAID THE DOWNGRADE REFLECTS EXPECTATIONS THAT MANAGEMENT WON'T QUOTE BE ABLE TO SUSTAIN A FINANCIAL PROFILE COMMENSURATE WITH FORMER RATINGS IN VIEW OF LIMITED SALES GROWTH PROSPECTS DECLINING AUTHORIZED RETURNS ON EQUITY AND INCREASING PURCHASED POWER OBLIGATIONS QUOTE A SPOKESMAN FOR CON ED SAID THE COMPANY WAS DISAPPOINTED TO LEARN ABOUT THE S. AND P. DOWNGRADE WE THINK WHEN YOU LOOK AT OUR FINANCIAL STRENGTH THE HIGHER RATINGS HAD BEEN WARRANTED HE SAID CONTINUING ITS MOVE INTO BIGGER CARS AIMED AT AGING BABY BOOMERS TOYOTA MOTOR CORPORATION UNVEILED A NEW LARGE SEDAN THE AVALON WHICH IS TO BE BUILT EXCLUSIVELY IN GEORGETOWN KENTUCKY THE NEW CAR IS WIDER LONGER AND HAS MORE INTERIOR SPACE THAN TOYOTA'S PREVIOUS BIGGEST CAR THE CAMRY AND IS AIMED AT HOLDING ONTO CUSTOMERS WHO HAVE OUTGROWN THE CAMRY TOYOTA SAID THE AVALON WILL COME EQUIPPED WITH STANDARD DUAL AIR BAGS AUTOMATIC TRANSMISSION POWER WINDOWS AND A ONE HUNDRED NINETY TWO HORSEPOWER V. SIX ENGINE TOYOTA DIDN'T ANNOUNCE THE NEW CAR'S PRICE BUT IT IS EXPECTED TO FALL BETWEEN THE TWENTY SIX THOUSAND FIVE HUNDRED DOLLARS THAT THE TOP OF THE LINE CAMRY COSTS AND THE THIRTY ONE THOUSAND TWO HUNDRED DOLLARS THAT THE CHEAPEST LEXUS COSTS TOYOTA SAID IT EXPECTS TO SELL TWENTY THOUSAND TO THIRTY THOUSAND AVALONS ANNUALLY THE CAR IS TO GO ON SALE THIS FALL COPLEY PHARMACEUTICAL INCORPORATED SAID THAT IT NOW BELIEVES THE SOURCE OF BACTERIAL CONTAMINATION IN ITS ALBUTEROL SULFATE ASTHMA MEDICINE WAS A PROCESS IT USED FOR RINSING OFF EQUIPMENT IN ITS PACKAGING LINE COPLEY SAID IT DOESN'T USE THE PROCESS ON ANY OF ITS OTHER LINES IT HAS RECALLED ITS ZERO POINT FIVE PERCENT ALBUTEROL FROM THE MARKET BECAUSE OF THE CONTAMINATION SEVERAL LAWSUITS HAVE BEEN FILED AGAINST COPLEY ALLEGING THAT ALBUTEROL USE CAUSED ILLNESS COPLEY SAID IT QUOTE HAS RECEIVED REPORTS OF DEATHS AND ILLNESSES CLAIMED TO BE ASSOCIATED WITH THE USE OF ITS PRODUCT QUOTE IT ADDED NONE OF THESE REPORTS HAVE BEEN CONFIRMED SOME EIGHTY TWO PERCENT OF AMERICANS ARE AT RISK FOR CORONARY HEART DISEASE DESPITE SOME LIFESTYLE CHANGES THAT WERE EXPECTED TO YIELD A LOWER NUMBER OF PEOPLE AT RISK OVERALL ACCORDING TO A FEDERAL STUDY EVEN MORE DISTURBING FEDERAL RESEARCHERS SAY THEIR FINDINGS INDICATE THAT ONCE SOMEONE BECOMES AT RISK FOR CORONARY HEART DISEASE NO AMOUNT OF TREATMENT CAN UNDO THE DAMAGE AND PUT THEM BACK ON PAR WITH SOMEONE WHO WAS NEVER AT RISK FOR EXAMPLE RESEARCHERS SAY PEOPLE WHO EFFECTIVELY CONTROL THEIR HIGH BLOOD PRESSURE ONE OF THE SIX MAJOR RISK FACTORS WILL REMAIN AT A HIGHER RISK FOR CORONARY HEART DISEASE THAN DO PEOPLE WHO NEVER DEVELOP HYPERTENSION ACCORDING TO THE STUDY BY THE U. S. CENTERS FOR DISEASE CONTROL AND PREVENTION QUOTE THIS REALLY POINTS OUT THE NEED FOR PRIMARY PREVENTION QUOTE SAID DRUE BARRETT AN OFFICER WITH THE EPIDEMIC INTELLIGENCE SERVICE DIVISION OF THE C. D. C.'S CARDIOVASCULAR HEALTH STUDIES BRANCH IT MEANS WE NEED TO KEEP PEOPLE FROM EVEN DEVELOPING THE RISK FACTORS DOCTORS CAUTIONED THAT THE STUDY DOESN'T MEAN THAT THOSE AT RISK NEED NOT BOTHER TRYING TO MAKE LIFESTYLE CHANGES TO REDUCE THEIR RISK THE SIX ESTABLISHED RISK FACTORS ARE OBESITY LACK OF EXERCISE HIGH BLOOD PRESSURE HIGH BLOOD CHOLESTEROL DIABETES AND CIGARETTE SMOKING DEFINED AS HAVING SMOKED AT LEAST ONE HUNDRED CIGARETTES IN ONE'S LIFETIME PHYSICAL ACTIVITY AND DIET CHANGES FOR EXAMPLES DO HELP TO REDUCE ONE'S RISK MEDICAL EXPERTS MAINTAINED BUT DON'T ERASE IT ALTOGETHER THE EMPHASIS NEEDS TO BE THAT YOU NEVER DEVELOP THE RISK FACTORS RATHER THAN WHAT TO DO ONCE YOU HAVE DOCTOR BARRETT SAID THAT MEANS MORE PREVENTIVE PROGRAMS NEED TO BE TARGETED TO HEALTHY YOUNG PEOPLE WHO ARE NOT AT RISK AT ALL DOCTORS SAID MEN AND WOMEN BETWEEN THE AGES OF EIGHTEEN AND THIRTY FOUR WERE LEAST LIKELY TO BE AT RISK FOR HEART DISEASE ON A STATE BY STATE BASIS UTAH COLORADO AND WASHINGTON REPORTED THE LOWEST PERCENTAGES OF PEOPLE AT RISK WHILE SOUTH DAKOTA WEST VIRGINIA AND MISSISSIPPI REPORTED THE MOST PEOPLE AT RISK THE RESULTS OF THE STUDY CONDUCTED ON NINETY ONE THOUSAND PEOPLE SURPRISED RESEARCHERS WHO EXPECTED THAT SUPPOSED LIFESTYLE CHANGES NATIONWIDE WOULD TRANSLATE INTO FEWER PEOPLE AT RISK FOR HEART DISEASE THERE WAS NO PREVIOUS FEDERAL STUDY OF THIS SIZE FOR COMPARISON BUT RESEARCHERS STILL EXPECTED A LOWER RISK GROUP THAN EIGHTY TWO PERCENT GENERALLY CHOLESTEROL LEVELS ARE LOWER NOW THAN IN PRIOR DECADES RESEARCHERS SAID AND MANY FEWER PEOPLE SMOKE IN NINETEEN NINETY ONE THE PERCENTAGE OF U. S. ADULTS WHO SMOKED CIGARETTES HAD DROPPED TO TWENTY SIX PERCENT FROM FORTY PERCENT IN NINETEEN SIXTY FIVE WHILE THE PERCENTAGE OF ADULTS WITH HIGH CHOLESTEROL LEVELS DECREASED TO TWENTY PERCENT FROM TWENTY SIX PERCENT IN NINETEEN SEVENTY MAYBE THE WORLD IS WATCHING THE WRONG RUSSIAN REFORM THE ECONOMIC SIDE IS TROUBLING THE POLITICAL SIDE IS SERIOUSLY DISTURBING IN THE COLUMNS ALONGSIDE SEE RELATED ARTICLE QUOTE TRIALS OF A NEW RUSSIAN DISSIDENT QUOTE W. S. J. FEBRUARY FOURTH NINETEEN NINETY FOUR J. MICHAEL WALLER DESCRIBES THE CURRENT TRIAL IN MOSCOW OF RUSSIAN SCIENTIST VIL MIRZAYANOV WHO IS ACCUSED OF REVEALING QUOTE STATE SECRETS QUOTE REGARDING PRODUCTION OF A NEW RUSSIAN CHEMICAL WEAPON CALLED NOVICHOK COMPLIANCE WITH CHEMICAL WEAPONS TREATIES ASIDE THE MIRZAYANOV TRIAL RAISES QUESTIONS ABOUT THE INTEGRITY OF RUSSIA'S LEGAL PROCESSES ABOUT THE ROLE OF THE FORMER K. G. B. IN RUSSIA TODAY AND ABOUT WHO CONTROLS THE MILITARY COMPLEXES THIS TRIAL HOWEVER ISN'T THE ONLY ECHO BEING HEARD FROM THE SOVIET PAST A LOT OF RUSSIANS ARE ISSUING DIKTATS THESE DAYS REMINDING THE WORLD THAT A SIGNIFICANT PART OF THAT SOCIETY'S LEADERSHIP REMAINS UNTOUCHED BY POST COMMUNIST REFORM OR FOR THAT MATTER BY THE ORDINARY RULES OF CIVILITY AND DECENCY A FEW EXAMPLES VLADIMIR ZHIRINOVSKY WENT STORMING THROUGH THE BUDAPEST AIRPORT YESTERDAY DEMANDING THAT A HUNGARIAN AIRLINER TO MOSCOW WAIT FOR HIM BECAUSE I AM A DEPUTY OF THE RUSSIAN PARLIAMENT WHEN THE AIRLINE STAFF WASN'T IMPRESSED HE THREATENED TO PUNISH THEM WHEN HE BECOMES PRESIDENT OF RUSSIA HE GENTLY DESCRIBED THE AIRPORT AS A WHOREHOUSE AT THE SAME TIME IN MOSCOW THAT OTHER GREAT REFORMER PRIME MINISTER VIKTOR CHERNOMYRDIN WAS BANNING THE RUSSIAN PRESS FROM FURTHER COVERAGE OF CABINET MEETINGS HE NO DOUBT WANTS TO SPARE RUSSIAN VOTERS FROM THE IDIOCIES LIKELY TO BE UTTERED BY SOME OF HIS RECENT APPOINTEES THE ARROGANCE THAT INTERESTS US MOST CAME FROM RUSSIAN DEFENSE MINISTER PAVEL GRACHEV HE WAS VISITING GEORGIA NOW PART OF RUSSIA'S NEO IMPERIALIST DESIGNS MR. GRACHEV USED THE OCCASION TO TELL NATO HOW TO CONDUCT ITSELF NATO YOU WILL RECALL IS THE ALLIANCE THAT AT ITS SUMMIT A MONTH AGO WENT TO GREAT PAINS NOT TO OFFEND RUSSIAN SENSIBILITIES IT TIMIDLY BOWED TO RUSSIAN DEMANDS THAT IT NOT GRANT NATO MEMBERSHIP TO RUSSIA'S FORMER WARSAW PACT SATELLITES IN GEORGIA MR. GRACHEV TOLD THOSE SAME NATIONS THAT IF THEY SEE BILL CLINTON'S PARTNERSHIP FOR PEACE PROGRAM AS AN INTERMEDIATE STEP TOWARD FULL NATO MEMBERSHIP THEY HAD BETTER FORGET IT BECAUSE WE WILL NOT SUPPORT IT SO WE HAVE MR. ZHIRINOVSKY AND MR. GRACHEV IN THEIR OWN WAYS REASSERTING THE BREZHNEV DOCTRINE THAT CRUDE FIAT HELD THAT THE SOVIET EMPIRE WAS SACROSANCT AND THAT ALL MOSCOW'S SUBJECTS WOULD REMAIN SUBJECTS FOR ALL TIME IT DIDN'T WORK OUT THAT WAY BUT THAT WAS MAINLY BECAUSE BALTS POLES CZECHS AND HUNGARIANS WERE BRAVE ENOUGH TO RISE UP AGAINST THE ROTTEN REGIME IN MOSCOW AND EXPOSE ITS FUNDAMENTAL WEAKNESS SO WHY SHOULD THE WEST BE SO TENDER TODAY IN TRYING TO PROTECT THE SENSIBILITIES OF THESE FORMER IMPERIALISTS INSTEAD OF PACIFYING THEM THIS APPROACH IS CLEARLY HAVING THE OPPOSITE EFFECT EMBOLDENING THEM TO ISSUE ULTIMATUMS TO THE STATES THAT WERE ONCE UNDER THEIR CONTROL MR. GRACHEV ALSO SAID THAT RUSSIA WOULD LIKE INTENDS TO KEEP TROOPS IN THE TRANSCAUCASUS REPUBLICS GEORGIA ARMENIA AND AZERBAIJAN RUSSIAN FOREIGN MINISTER ANDREI KOZYREV GAVE A SPEECH LAST MONTH SUGGESTING THAT RUSSIA MIGHT NOT EVEN WITHDRAW TROOPS FROM THE BALTIC STATES HE LATER BACKED HALFWAY DOWN AFTER A RUCKUS FROM WASHINGTON THESE ARE THE KINDS OF SENSIBILITIES THAT MR. CLINTON AND HIS FELLOW NATO SUMMITEERS WERE TRYING TO PROTECT COULD THEY HAVE DONE WORSE IF THEY HAD INVITED THE BALTIC STATES POLAND HUNGARY AND THE CZECH AND SLOVAK REPUBLICS INTO NATO TELLING THE RUSSIANS THAT IT WAS NONE OF THEIR BUSINESS WHAT WAS THE POINT ANYWAY OF ACCEPTING THE IDEA THAT RUSSIA STILL HAS DE FACTO CONTROL OVER THESE SOVEREIGN NATIONS OR AS HENRY KISSINGER WONDERED IN A RECENT SEVERE CRITIQUE OF THE ADMINISTRATION'S PARTNERSHIP FOR PEACE QUOTE IF RUSSIA CAN VETO NATO MEMBERSHIP NOW WHEN IT IS IN NEED OF ECONOMIC SUPPORT WHAT WILL IT VETO WHEN IT HAS BEEN STRENGTHENED THROUGH REFORM AND AMERICAN ECONOMIC ASSISTANCE QUOTE WE ARE TEMPTED TO ASK IF SOMEONE IN THE STATE DEPARTMENT IS STILL TRYING TO PRESERVE MIKHAIL GORBACHEV'S SOVIET EMPIRE THE POINT IS THAT BY TREATING RUSSIA AS A HEGEMONIC POWER THE WEST IS CAUSING THE RUSSIANS TO BELIEVE IT THEMSELVES AND TO TRY TO TAKE MAXIMUM ADVANTAGE OF THE INVITATION MR. CLINTON AND RUSSIAN POLICY MASTERMIND STROBE TALBOTT WERE WARNED ABOUT THIS BY PEOPLE WHO KNOW MUCH MORE ABOUT THE RUSSIANS THAN MR. TALBOTT WILL EVER KNOW THEY ARE THE POLES BALTS CZECHS AND HUNGARIANS WHO LIVED UNDER RUSSIAN HEGEMONY FOR FORTY YEARS THEY KNOW THAT THERE STILL ARE A LOT OF BULLYING ZHIRINOVSKYS IN THE RUSSIAN POWER STRUCTURE BACK IN OCTOBER INCIDENTALLY SENATOR BILL BRADLEY ASKED MR. TALBOTT TO RAISE THE ISSUE OF SCIENTIST MIRZAYANOV WITH THE RUSSIANS WITH NO VISIBLE RESULTS IF MR. CLINTON ISN'T TOO BUSY DIRECTING HIS ENERGIES AT DOMESTIC POLICY HE MIGHT WANT TO REVIEW FOREIGN POLICY A SUBJECT HE HARDLY TOUCHED IN HIS STATE OF THE UNION ADDRESS IF THE U. S. AND ITS ALLIES DON'T STAND UP TO RUSSIA THEY WILL BE HEARING MORE BOLD DIKTATS IN THE DAYS AHEAD AVON PRODUCTS INCORPORATED POSTED A TWO PERCENT RISE IN FOURTH QUARTER PROFIT WITH GAINS IN INTERNATIONAL OPERATIONS COMPENSATING FOR A LARGE PROFIT DROP IN ITS U. S. UNIT THE BEAUTY PRODUCTS CONCERN HAD NET OF ONE HUNDRED FIVE POINT FOUR MILLION DOLLARS OR ONE DOLLAR AND FORTY SIX CENTS A SHARE COMPARED WITH ONE HUNDRED THREE POINT THREE MILLION DOLLARS OR ONE DOLLAR AND FORTY THREE CENTS A SHARE A YEAR EARLIER SALES ROSE SEVEN PERCENT TO ONE POINT TWO SIX BILLION DOLLARS AS EXPECTED NEW YORK BASED AVON ALSO SAID ITS BOARD AUTHORIZED THE PURCHASE OF UP TO TEN PERCENT OF THE COMPANY'S COMMON STOCK OR SEVEN MILLION SHARES AVON ATTRIBUTED THE SALES AND PROFIT GAINS TO ITS INTERNATIONAL UNIT AS WELL AS TO LOWER FOREIGN EXCHANGE LOSSES ITS U. S. BUSINESS CONTINUED TO SHOW WEAKNESS QUOTE U. S. RESULTS WERE OBVIOUSLY DISAPPOINTING BUT SHOWED AN IMPROVING TREND LATE IN THE QUARTER AND SALES MOMENTUM HAS ACCELERATED SIGNIFICANTLY GOING INTO NINETEEN NINETY FOUR QUOTE SAID CHAIRMAN JAMES E. PRESTON IMPROVING SALES COMBINED WITH OUR PLANS TO REDUCE EXPENSES FROM THE UNUSUALLY HIGH NINETEEN NINETY THREE LEVELS GIVES US CONFIDENCE THAT A STRONG RECOVERY IN THE PROFITABILITY IN THE U. S. IS UNDERWAY HE SAID AVON CLOSED AT FIFTY FIVE POINT EIGHT SEVEN FIVE DOLLARS UP TWO POINT EIGHT SEVEN FIVE DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PORSCHE A. G. THE MAKER OF PRICEY GERMAN SPORTS CARS WHOSE PRODUCTS BECAME A SYMBOL OF EIGHTIES EXCESS IS TRYING TO RETUNE ITSELF FOR THE FRUGAL NINETIES QUOTE A PORSCHE REPRESENTS THE ULTIMATE DEFERABLE PURCHASE QUOTE FREDERICK J. SCHWAB THE PRESIDENT OF PORSCHE OF NORTH AMERICA INCORPORATED ACKNOWLEDGED AT THE CHICAGO AUTO SHOW OUR GOAL IS TO MAKE IT O. K. TO DRIVE A PORSCHE AGAIN MR. SCHWAB OUTLINED A STRATEGY INTENDED TO BOOST SALES FIFTEEN PERCENT THIS YEAR AND TO PUSH WORLD WIDE VOLUMES TO THIRTY THOUSAND ANNUALLY BY NINETEEN NINETY SEVEN THE STRATEGY INCLUDES CATCHING UP WITH THE REST OF THE INDUSTRY IN ADOPTING LEAN PRODUCTION TECHNIQUES CUTTING PRICES AND INTRODUCING AN ENTRY LEVEL MODEL A NEW AD CAMPAIGN IN THE U. S. POKES FUN AT PORSCHE'S TENDENCY FOR TAKING ITSELF TOO SERIOUSLY BUT THE STRATEGY DOESN'T INCLUDE SELLING OUT TO A LARGER AUTO MAKER AS MOST OTHER SMALL INDEPENDENT COMPANIES ALREADY HAVE I PERSONALLY DON'T THINK PORSCHE CAN KEEP ITS UNIQUENESS AND CHARACTER AS PART OF A LARGER GROUP MR. SCHWAB SAID AND THE FAMILY CAN AFFORD TO STAY INDEPENDENT NONETHELESS THE CLOSELY HELD STUTTGART CONCERN IS EXPECTED TO LAUNCH A PUBLIC STOCK OFFERING THIS SPRING OF MORE THAN FOUR HUNDRED FORTY THOUSAND SHARES MR. SCHWAB SAID HALF OF THE SHARES ARE TO BE PURCHASED BY THE CONTROLLING PORSCHE FAMILY OF WHOM FERDINAND PIECH THE CHAIRMAN OF VOLKSWAGEN A. G. IS A SCION AFTER SHEDDING HUNDREDS OF EMPLOYEES AND SUPPLIERS WORLD WIDE AND ADOPTING LEAN PRODUCTION TECHNIQUES PORSCHE MANAGED ITS FIRST PROFIT IN YEARS DURING THE FISCAL YEAR ENDED JULY NINETEEN NINETY THREE MR. SCHWAB SAID PORSCHE HOPES ITS NEW PRICING STRATEGY WILL HELP BOOST SALES WHEN REDESIGNED NINE HUNDRED ELEVEN COUPES AND CABRIOLETS DEBUT THIS MARCH IN THE U. S. BOTH WILL BE PRICED ABOUT FIVE THOUSAND DOLLARS LOWER THAN THEIR COMPARABLY EQUIPPED PREDECESSORS FIFTY NINE THOUSAND NINE HUNDRED DOLLARS FOR THE COUPE SIXTY EIGHT THOUSAND TWO HUNDRED DOLLARS FOR THE CABRIOLET IN NINETEEN NINETY SEVEN PORSCHE IS TO INTRODUCE A COUPE BASED ON A POPULAR AUTO SHOW CONCEPT CAR THE BOXER PRICED UNDER THIRTY NINE THOUSAND NINE HUNDRED FIFTY DOLLARS LOWERING THE HURDLE FOR ENTRY LEVEL PORSCHE BUYERS TOGETHER WITH ITS EIGHTY THOUSAND DOLLAR PLUS NINE HUNDRED TWENTY EIGHT MODELS THIS WILL GIVE PORSCHE A MODEL LINEUP IN NINETEEN NINETY SEVEN THAT SHOULD BOOST U. S. SALES TO ABOUT TEN THOUSAND CARS A YEAR MR. SCHWAB SAID ROSS STORES INCORPORATED CITING INCREASED FOURTH QUARTER PRICE COMPETITION SAID IT EXPECTS TO REPORT A DECLINE OF ABOUT THIRTEEN PERCENT IN FISCAL NINETEEN NINETY FOUR EARNINGS THE NEWARK CALIFORNIA DISCOUNT RETAIL CHAIN SAID IT EXPECTS TO REPORT PROFIT OF BETWEEN ONE DOLLAR AND TWELVE CENTS AND ONE DOLLAR AND FIFTEEN CENTS A SHARE FOR THE YEAR ENDED JANUARY TWENTY NINTH ROSS HAD NET INCOME OF THIRTY FOUR MILLION DOLLARS OR ONE DOLLAR AND THIRTY TWO CENTS A SHARE A YEAR EARLIER THE COMPANY WILL REPORT EARNINGS IN MARCH NORMAN FERBER ROSS'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID EARNINGS DECLINED BECAUSE OF COMPETITION AMONG APPAREL RETAILERS DURING THE HOLIDAY SEASON ROSS SAID ITS JANUARY SALES ROSE FOURTEEN PERCENT TO FIFTY SIX MILLION DOLLARS FROM FORTY NINE MILLION DOLLARS A YEAR AGO SAME STORE SALES FOR THE PERIOD ROSE FIVE PERCENT FOR THE FISCAL YEAR SALES WERE ONE POINT ONE TWO BILLION DOLLARS UP EIGHT PERCENT FROM ONE POINT OH FOUR BILLION DOLLARS A YEAR EARLIER SAME STORE SALES FOR THE PERIOD FELL ONE PERCENT REDWOOD EMPIRE BANCORP SAID IT EXPECTS TO REPORT FOURTH QUARTER EARNINGS OF ONE MILLION DOLLARS TO ONE POINT ONE MILLION DOLLARS OR THIRTY FOUR CENTS TO THIRTY SIX CENTS A SHARE UP MORE THAN FORTY PERCENT FROM THE YEAR EARLIER THE SANTA ROSA CALIFORNIA COMPANY PART SAVINGS AND LOAN ASSOCIATION AND PART COMMERCIAL BANK CITED A FLOOD OF NEW HOME LOAN BUSINESS THE ESTIMATED RESULTS COMPARE WITH NET INCOME OF SEVEN HUNDRED NINE THOUSAND DOLLARS OR TWENTY EIGHT CENTS A SHARE IN NINETEEN NINETY TWO'S FOURTH QUARTER FOR ALL OF NINETEEN NINETY THREE REDWOOD EXPECTS TO REPORT EARNINGS OF FOUR POINT FIVE MILLION DOLLARS TO FOUR POINT SIX MILLION DOLLARS OR ONE DOLLAR AND FIFTY THREE CENTS TO ONE DOLLAR AND FIFTY FOUR CENTS A SHARE UP SEVENTY THREE PERCENT FROM TWO POINT SIX MILLION DOLLARS OR ONE DOLLAR AND ELEVEN CENTS A SHARE IN NINETEEN NINETY TWO SAID JOHN H. DOWNEY JUNIOR CHAIRMAN THE ESTIMATES ARE WITHIN THE RANGE EXPECTED BY ANALYSTS REDWOOD SAID IT PLANS TO ANNOUNCE RESULTS FEBRUARY FOURTEENTH THE S. AND L. BUSINESS GENERATES SEVENTY FIVE PERCENT OF ITS EARNINGS MAINLY THROUGH ORIGINATIONS OF HOME MORTGAGES LAST YEAR IT WROTE ONE POINT NINE BILLION DOLLARS IN SUCH LOANS A ONE HUNDRED TWENTY SEVEN PERCENT INCREASE FROM NINETEEN NINETY TWO THE CHAIRMEN OF TWO HOUSE SUBCOMMITTEES ARE QUESTIONING THE ABILITY OF THE SECURITIES AND EXCHANGE COMMISSION TO SUPERVISE PUBLIC UTILITY COMPANIES THAT ENTER THE TELECOMMUNICATIONS BUSINESS DEMOCRATIC REPRESENTATIVES EDWARD MARKEY OF MASSACHUSETTS AND PHILIP SHARP OF INDIANA SAID UTILITY COMPANIES' PROPOSALS TO ADD TELECOMMUNICATIONS TO THEIR BUSINESS PORTFOLIOS QUOTE RAISE A PROFOUND PUBLIC POLICY ISSUE CONCERNING WHETHER MULTISTATE ELECTRIC UTILITIES WOULD BE EFFECTIVELY REGULATED IF THEY WERE ALLOWED TO DIVERSIFY INTO FIELDS NOT RELATED TO THEIR CORE ENERGY BUSINESSES QUOTE THE S. E. C. OVERSEES PUBLIC UTILITY HOLDING COMPANIES AND MUST APPROVE THE COMPANIES' DIVERSIFICATION INTO OTHER BUSINESSES THE S. E. C.'S OVERSIGHT DATES BACK TO LEGISLATION THAT FOLLOWED THE NINETEEN TWENTY NINE STOCK MARKET CRASH EARLIER THIS WEEK REPRESENTATIVE RICK BOUCHER D. VIRGINIA SUGGESTED THAT HE WOULD OFFER LEGISLATION GIVING UTILITY COMPANIES A BLANKET EXEMPTION FROM S. E. C. REGULATIONS THAT COULD PROHIBIT THEIR JOINING THE TELECOMMUNICATIONS BUSINESS MR. BOUCHER'S DECLARATION PROMPTED MR. MARKEY CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE AND MR. SHARP CHAIRMAN OF THE HOUSE ENERGY AND POWER SUBCOMMITTEE TO DIRECT A SERIES OF QUESTIONS TO S. E. C. CHAIRMAN ARTHUR LEVITT REGARDING THE STATUS OF ANY UTILITY COMPANY REQUESTS TO ENTER THE TELECOMMUNICATIONS BUSINESS AND THE ABILITY OF THE S. E. C. TO REGULATE SUCH WIDE RANGING INTERESTS MR. BOUCHER ALSO SIGNED THE LETTER TO MR. LEVITT THE TRANSPORTATION DEPARTMENT SAID IT WILL REQUIRE TRANSPORTATION COMPANIES TO TEST FOR ALCOHOL USE TWENTY FIVE PERCENT OF WORKERS WHOSE JOBS AFFECT SAFETY BUT WILL ALLOW THE RATE TO CHANGE DEPENDING ON HOW EACH INDUSTRY PERFORMS THE NEW TESTING RULES CRAFTED TO MEET A LAW PASSED IN NINETEEN NINETY ONE ALSO WOULD DOUBLE THE NUMBER OF TRANSPORTATION WORKERS COVERED BY FEDERAL DRUG TESTING RULES TO ABOUT SEVEN POINT FIVE MILLION WORKERS THE ALCOHOL AND DRUG TESTING RULES WILL COVER AIRLINES TRUCKING COMPANIES TRANSIT SYSTEMS RAILROADS AND GAS PIPELINE CONCERNS THE EXTRA DRUG AND ALCOHOL TESTING WOULD COST BUSINESSES AN ESTIMATED TWO BILLION DOLLARS OVER THE NEXT TEN YEARS AND THE RULES COULD FACE LEGAL CHALLENGES FROM UNIONS AND EMPLOYERS BOTH GROUPS FOUND FAULT WITH THE REGULATIONS YESTERDAY UNIONS SAID THE RULES DON'T GIVE WORKERS ENOUGH PROTECTION AGAINST ERRONEOUS TEST RESULTS AND ALLOW EMPLOYERS TO IMPOSE A TOUGHER STANDARD THAN THE GOVERNMENT DOES THE RULES REQUIRE AN EMPLOYEE WHOSE BLOOD ALCOHOL LEVEL TESTS ABOVE ZERO POINT ZERO FOUR PERCENT TO BE RELIEVED FROM SAFETY RELATED DUTIES BUT QUOTE AN EMPLOYEE COULD FALL UNDER THE THRESHOLD AND STILL BE FIRED QUOTE SAID ED WYTKIND AN EXECUTIVE DIRECTOR OF THE A. F. L. C. I. O.'S TRANSPORTATION TRADES DEPARTMENT INDUSTRY REPRESENTATIVES SAID THE RULES WOULD BE COSTLY FOR BUSINESSES TO PUT INTO EFFECT PARTICULARLY BECAUSE THE TRANSPORTATION DEPARTMENT WOULD ALSO REQUIRE EMPLOYEES TO BE TESTED FOR ALCOHOL WHEN THEY APPLY FOR A JOB PRE EMPLOYMENT TESTING IS AN I. Q. TEST NOT A SAFETY TEST SAID JOHN J. COLLINS A LOBBYIST FOR THE AMERICAN TRUCKING ASSOCIATIONS HE ALSO QUESTIONED THE VALUE OF ALCOHOL TESTS THAT TRUCKERS WOULD RECEIVE ONLY WHEN THEY RETURNED TO THE TERMINALS AND TESTS THAT INDEPENDENT TRUCKERS WOULD PERFORM THEMSELVES TRANSPORTATION DEPARTMENT OFFICIALS SAID THE SAFETY BENEFITS FAR EXCEED THE COSTS THEY SAID THE GOVERNMENT COULDN'T PREVENT EMPLOYERS FROM TAKING THEIR OWN ACTIONS AGAINST EMPLOYEES AND THAT PEOPLE HAVE SHOWN UP FOR AIRLINE INTERVIEWS WITH DRUGS IN THEIR SYSTEM FEDERICO PENA TRANSPORTATION SECRETARY SAID UNIONS AND BUSINESSES SHOULD SPEND THEIR MONEY REDUCING DRUG AND ALCOHOL USE INSTEAD OF FIGHTING THE RULES MR. PENA NOTED THAT SMALL BUSINESSES WOULD HAVE UNTIL JANUARY NINETEEN NINETY SIX INSTEAD OF NEXT JANUARY TO BEGIN ALCOHOL TESTING AND SAID THE RULES HAVE CLEAR COMMON SENSE INCENTIVES FOR BUSINESSES TO DECREASE ALCOHOL AND DRUG USE INDUSTRIES THAT PERFORM WELL IN RANDOM ALCOHOL TESTS COULD TEST AS FEW AS TEN PERCENT OF THEIR WORKERS EACH YEAR WHILE INDUSTRIES THAT PERFORM POORLY WOULD HAVE TO TEST FIFTY PERCENT THE AIRLINE INDUSTRY MUST NOW TEST FIFTY PERCENT OF PILOTS FLIGHT ATTENDANTS AND GROUND CREWS FOR DRUGS AIRLINES WOULD NOW BE ALLOWED TO TEST TWENTY FIVE PERCENT INSTEAD SINCE POSITIVE RESULTS HAVE BEEN BELOW THE TRANSPORTATION DEPARTMENT'S THRESHOLD SEAGULL ENERGY CORPORATION SAID IT INCREASED ITS PROVEN RESERVES OF NATURAL GAS CRUDE OIL AND CONDENSATE SIGNIFICANTLY SINCE THE BEGINNING OF LAST YEAR THE HOUSTON OIL AND GAS EXPLORER AND PRODUCER SAID THAT IT ENDED NINETEEN NINETY THREE WITH PROVEN U. S. RESERVES OF NINE HUNDRED FIFTEEN BILLION CUBIC FEET OF NATURAL GAS AND FOURTEEN POINT EIGHT MILLION BARRELS OF CRUDE OIL CONDENSATE AND NATURAL GAS LIQUIDS OR A TOTAL ENERGY EQUIVALENT OF ONE BILLION CUBIC FEET OF NATURAL GAS A YEAR EARLIER THE COMPANY'S PROVEN U. S. RESERVES TOTALED EIGHT HUNDRED EIGHTY FOUR BILLION CUBIC FEET OF NATURAL GAS AND EIGHTEEN POINT ONE MILLION BARRELS OF OIL CONDENSATE AND NATURAL GAS LIQUIDS OR A TOTAL OF NINE HUNDRED NINETY THREE BILLION CUBIC FEET OF NATURALGAS EQUIVALENTS LAST MONTH SEAGULL EXPANDED ITS RESERVE BASE TO INCLUDE CANADIAN GAS AND OIL PROPERTIES WHEN IT ACQUIRED SEAGULL ENERGY CANADA LTD FORMERLY NOVALTA RESOURCES INCORPORATED CALGENE INCORPORATED DAVIS CALIFORNIA SAID ITS FISCAL NINETEEN NINETY FOUR LOSS WILL BE LARGER THAN NINETEEN NINETY THREE'S LOSS BECAUSE OF DELAYS IN GETTING FOOD AND DRUG ADMINISTRATION APPROVAL FOR ITS GENETICALLY ENGINEERED FLAVR SAVR TOMATO CALGENE REPORTED A LOSS OF TWENTY FIVE POINT SIX MILLION DOLLARS OR ONE DOLLAR AND THIRTEEN CENTS A SHARE IN THE NINETEEN NINETY THREE FISCAL YEAR ENDED JUNE THIRTIETH THE BIOTECH COMPANY SAID THE F. D. A. IS STILL REVIEWING FLAVR SAVR WHICH IS EXPECTED TO LAST LONGER AND TASTE BETTER THAN CONVENTIONAL TOMATOES FEDERAL REGULATORS HAVE GIVEN NO INDICATION WHEN THEY WILL CLEAR THE TOMATO TO BE SOLD CALGENE SAID THE COMPANY WHICH EXPECTED TO BEGIN MARKETING FLAVR SAVR LAST FALL NOW SAYS IT DOESN'T ANTICIPATE BEING ABLE TO PUT IT ON THE MARKET UNTIL AT LEAST THE SECOND QUARTER OF THIS CALENDAR YEAR CALGEN OFFICIALS DECLINED TO SPECULATE ON HOW MUCH LARGER THE LOSS WILL BE FOR THIS FISCAL YEAR BUT THEY SAID THE F. D. A. HOLDUP AND PREMARKETING COSTS ARE PUSHING UP COSTS BEYOND PREVIOUS ESTIMATES LEGEND HOLDINGS LIMITED A HONG KONG COMPANY THAT LAST WEEK CLOSED SUBSCRIPTIONS ON ITS FIRST SHARE ISSUE WILL BEGIN MARKETING PERSONAL COMPUTER COMPONENTS INTERNATIONALLY IN MARCH ITS VICE CHAIRMAN SAID DANNY T. P. LUI WHO IS RESPONSIBLE FOR INTERNATIONAL SALES SAID THE COMPANY PLANS TO MARKET AN UPGRADABLE ALL IN ONE BOARD FOR P. C.S STARTING IN MARCH LEGEND HOPES TO SELL THE COMPONENT AND FUTURE PRODUCTS SUCH AS SPECIALIZED ADD ON BOARDS TO BRAND NAME COMPUTER COMPANIES THE COMPONENTS WILL BE DESIGNED AND MADE BY LEGEND IN CHINA SELLING SUCH PRODUCTS OVERSEAS WOULD BE A NEW BUSINESS STRATEGY FOR THE GROUP LEGEND A SINO HONG KONG JOINT VENTURE IS ONE OF THE LARGEST DISTRIBUTORS AND MAKERS OF PERSONAL COMPUTERS IN CHINA AND HONG KONG THE GROUP'S SALES IN THE YEAR ENDED IN MARCH NINETEEN NINETY THREE TOTALED H. K. ONE POINT EIGHT BILLION DOLLARS TWO HUNDRED THIRTY THREE MILLION U. S. DOLLARS ON WHICH IT EARNED AN AFTER TAX PROFIT OF H. K. TWENTY SIX POINT FIVE MILLION DOLLARS THE GROUP HAS PROJECTED AFTER TAX PROFIT FOR THE CURRENT YEAR OF AT LEAST H. K. SIXTY FIVE MILLION DOLLARS WHILE THE OUTLOOK IS BRIGHT MICHAEL L. Y. NG DEPUTY GENERAL MANAGER SAID LEGEND'S SHARE OF THE CHINESE MADE PERSONAL COMPUTER MARKET MAY HAVE SLIPPED LAST YEAR LEGEND BRAND COMPUTERS MADE IN CHINA ACCOUNTED FOR ABOUT SIX POINT FIVE PERCENT OF THE TWO HUNDRED FORTY THOUSAND OR SO COMPUTERS SOLD IN CHINA DURING NINETEEN NINETY TWO MR. NG ESTIMATED THAT AS MANY AS FOUR HUNDRED THOUSAND P. C.S WERE SOLD LAST YEAR IN CHINA OF LEGEND'S OWN BRAND SALES THERE MR. NG SAID QUOTE THE VOLUME HAS GROWN BUT I DON'T KNOW ABOUT MARKET SHARE QUOTE HE SAID HIS UNCERTAINTY STEMMED FROM SURGING POPULARITY OF MORE EXPENSIVE FOREIGN BRAND NAME COMPUTERS HOWEVER BECAUSE LEGEND IS THE LARGEST DISTRIBUTOR OF A. S. T. RESEARCH INCORPORATED COMPUTERS AND A BIG DISTRIBUTOR OF OTHER FOREIGN BRANDS IN CHINA HE SAID THE COMPANY'S OVERALL SALES IN CHINA CONTINUE TO GROW RAPIDLY LEGEND ALSO IS A LEADER IN SUPPLYING COMPUTERS FOR SPECIALIZED VALUE ADDED PURPOSES IT ALSO PROVIDES COMPONENTS USEFUL FOR CHINESE LANGUAGE PROGRAMS AND IS DESIGNING NEW SEMICONDUCTOR CHIPS AND MOTHERBOARDS SUCH SALES ARE RISING FAST MR. NG SAID AND THE GROUP IS INVESTING HEAVILY IN RESEARCH AND DEVELOPMENT THE COMPANY'S NEW ISSUE OF ONE HUNDRED SIXTY EIGHT POINT EIGHT MILLION SHARES IS EXPECTED TO RAISE H. K. TWO HUNDRED TWENTY FOUR POINT FIVE MILLION DOLLARS THE SECURITIES WILL TRADE ON THE HONG KONG STOCK EXCHANGE LATE WEDNESDAY THE COMPANY ANNOUNCED THAT ITS NEW ISSUE WAS ABOUT FOUR HUNDRED FIVE TIMES OVERSUBSCRIBED APPLICATIONS FOR SHARES BROUGHT IN H. K. NINETY ONE POINT EIGHT BILLION DOLLARS REFUNDS FOR UNSUCCESSFUL APPLICATIONS WILL BE REFUNDED AFTER SHARES ARE ALLOTTED LEGEND PLANS TO USE THE FUNDS IT RAISES TO EXPAND ITS PRODUCTION AND RESEARCH AND DEVELOPMENT CAPABILITIES IT ALSO WILL PUT ABOUT H. K. SIXTY MILLION DOLLARS TOWARD ESTABLISHING AN INTERNATIONAL SALES NETWORK A SHAREHOLDER LAWSUIT THAT SPECTRUM INFORMATION TECHNOLOGIES INCORPORATED HAD AGREED TO SETTLE IS BEING EXPANDED AFTER NEW DISCLOSURES OF INSIDER SALES AND A FEDERAL INVESTIGATION OF THE WIRELESS TECHNOLOGY COMPANY SPECTRUM IS UNDER SCRUTINY FROM THE SECURITIES AND EXCHANGE COMMISSION BECAUSE OF UPBEAT STATEMENTS IT MADE ABOUT THE VALUE OF ITS PATENTS IN NOVEMBER SPECTRUM SAID IT HAD AGREED TO SETTLE A RELATED CLASS ACTION SHAREHOLDER LAWSUIT FOR ONE POINT FIVE MILLION DOLLARS AND NEW WARRANTS PENDING FINAL TERMS JOHN SCULLEY SPECTRUM'S NEW CHIEF EXECUTIVE HAD MADE SETTLING THE LITIGATION A TOP PRIORITY WHEN HE JOINED THE COMPANY IN OCTOBER COMPANY EXECUTIVES HAVE SINCE CITED THE SETTLEMENT AS A SIGN THAT THE COMPANY IS PUTTING ITS PROBLEMS BEHIND IT BUT THE LAWYER FOR SHAREHOLDER PLAINTIFFS YESTERDAY SAID THE TWO SIDES HAVEN'T SETTLED ANYTHING QUOTE IN LIGHT OF WHAT HAS BEEN OCCURRING OVER THE LAST SEVERAL WEEKS OUR DISCOVERY IN THIS CASE IS BEING BROADENED SUBSTANTIALLY QUOTE THE ATTORNEY DANIEL KRASNER SAID MR. KRASNER SAID THE SETTLEMENT AGREEMENT WAS NEVER PRESENTED TO THE COURT AND THE COMPLAINT NOW WILL BE EXPANDED IN LIGHT OF RECENT DISCLOSURES ABOUT SPECTRUM THESE INCLUDE THE SALE OF STOCK BY COMPANY PRESIDENT PETER CASERTA AND OTHER INSIDERS AFTER THE HIRING OF MR. SCULLEY SENT SHARES RISING STRONGLY THE DISCLOSURE OF THE S. E. C. INVESTIGATION AND THE DISMISSAL OF ARTHUR ANDERSEN AND COMPANY AS SPECTRUM'S AUDITOR AFTER THE ACCOUNTING FIRM FOUND PROBLEMS WITH INTERNAL CONTROLS OFFICIALS OF SPECTRUM WHICH IS BASED IN MANHASSET N. Y. COULDN'T BE REACHED FOR COMMENT THE SHAREHOLDER SUITS LATER CONSOLIDATED INTO A CLASS ACTION COMPLAINT IN FEDERAL COURT IN NEW YORK WERE FILED AFTER THE WILD RIDE TAKEN BY SPECTRUM'S STOCK LAST SPRING WHEN AMERICAN TELEPHONE AND TELEGRAPH COMPANY DISAVOWED A BOAST FROM MR. CASERTA THAT THE DEAL WOULD BE WORTH HUNDREDS OF MILLIONS OF DOLLARS IN ROYALTIES SPECTRUM SHARES FELL TWELVE POINT FIVE CENTS OR TWO PERCENT TO SIX POINT OH SIX TWO FIVE DOLLARS IN NASDAQ STOCK MARKET TRADING YESTERDAY THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS IS THREATENING TO STRIKE UNITED PARCEL SERVICE OF AMERICA ON MONDAY BECAUSE THE PACKAGE DELIVERY COMPANY IS RAISING ITS PACKAGE WEIGHT LIMITS JUST FOUR MONTHS AFTER ITS LAST STRIKE THREAT AGAINST U. P. S. THE UNION SAID IT WILL QUOTE GRIND THE COMPANY TO A HALT QUOTE IF IT GOES THROUGH WITH A PLAN TO ACCEPT PACKAGES OF ONE HUNDRED FIFTY POUNDS UP FROM THE CURRENT SEVENTY POUNDS THE CHANGE TAKES EFFECT MONDAY MANY IN THE INDUSTRY CONSIDERED A STRIKE UNLIKELY THE ONE HUNDRED FIFTY POUND WEIGHT LIMIT IS STANDARD IN THE INDUSTRY THEY SAY AND IS USED BY U. P. S.'S MAIN COMPETITOR FEDERAL EXPRESS CORPORATION MOREOVER THE UNION WOULD HAVE NO LEGAL GROUNDS FOR A STRIKE AND COULD NOT SURVIVE A BITTER LABOR DISPUTE THEY SAID A U. P. S. SPOKESMAN SAID THE COMPANY ALSO BELIEVES A STRIKE IS UNLIKELY FRANKLY WE DON'T UNDERSTAND WHY THIS HAS BECOME SUCH AN ISSUE HE SAID COMPANY OFFICIALS WILL MEET WITH UNION OFFICIALS TODAY TEAMSTERS OFFICIALS CONTEND THEY DO HAVE SOLID LEGAL GROUNDS FOR A STRIKE UNDER FEDERAL LABOR LAW A COMPANY MUST NEGOTIATE WITH A UNION FOR MAJOR CHANGES IN WORKING CONDITIONS THEY SAY THE CLOSELY HELD PACKAGE CARRIER IS THE LARGEST TEAMSTERS EMPLOYER WITH ONE HUNDRED SIXTY FIVE THOUSAND UNIONIZED WORKERS SEVERAL ANALYSTS SUGGESTED THE TEAMSTERS MAY BE TRYING TO STRENGTHEN ITS OWN POSITION IN CURRENT NEGOTIATIONS WITH THE FREIGHTERS THE UNION RECENTLY KICKED OFF TALKS WITH THE NATION'S LARGEST TRUCKING FIRMS FOR A NEW THREE YEAR CONTRACT ALLIED LYONS P. L. C. A BRITISH BEVERAGE CONCERN SAID ITS HIRAM WALKER SPIRITS AND WINES UNIT ACQUIRED PRIVAT WEINBRENNEREI JACOBI GMBH A GERMAN DISTRIBUTOR ALLIED LYONS SAID THE CONSIDERATION PAID WASN'T MATERIAL TO ITS NET ASSETS JACOBI HAS BEEN DISTRIBUTING CERTAIN HIRAM WALKER BRANDS SINCE LAST AUGUST BEGINNING IN APRIL JACOBI WILL ASSUME RESPONSIBILITY FOR THE SALES AND MARKETING OF ADDITIONAL HIRAM WALKER BRANDS THAT HAVE BEEN DISTRIBUTED BY UNI HANDELSGESELLSCHAFT GMBH ALLIED LYONS SAID THE COMPANY SAID THE ACQUISITION COMPLETES ITS PLANS TO STREAMLINE DISTRIBUTION OPERATIONS IN FRANCE AND GERMANY A DISTRIBUTION PACT WITH ANOTHER GERMAN COMPANY BORCO WILL BE MAINTAINED ALLIED LYONS SAID BORCO JACOBI AND UNI DISTRIBUTE DIFFERENT HIRAM WALKER BRANDS M. B. I. A. INCORPORATED AN INSURER OF MUNICIPAL BONDS REPORTED A TWENTY EIGHT PERCENT INCREASE IN FOURTH QUARTER NET INCOME AS THE COMPANY CONTINUED TO CAPITALIZE ON AN ACTIVE MUNICIPAL BOND ISSUING MARKET FOR THE QUARTER M. B. I. A. REPORTED NET INCOME OF SIXTY TWO POINT SEVEN MILLION DOLLARS OR ONE DOLLAR AND FORTY EIGHT CENTS A SHARE COMPARED WITH FORTY EIGHT POINT NINE MILLION DOLLARS OR ONE DOLLAR AND SIXTEEN CENTS A SHARE IN THE YEAR EARLIER QUARTER REVENUE INCREASED TWENTY THREE PERCENT TO ONE HUNDRED NINE POINT FIVE MILLION DOLLARS FROM EIGHTY EIGHT POINT NINE MILLION DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY M. B. I. A. STOCK FELL ONE DOLLAR OR ONE POINT SIX PERCENT TO CLOSE AT SIXTY TWO POINT EIGHT SEVEN FIVE DOLLARS A SHARE JIM BACA THE CONTROVERSIAL HARD DRIVING HEAD OF THE BUREAU OF LAND MANAGEMENT RESIGNED IN A CLASH WITH INTERIOR SECRETARY BRUCE BABBITT OVER MANAGEMENT STYLE MR. BABBITT SAID HE HAD OFFERED MR. BACA THE POST OF DEPUTY ASSISTANT SECRETARY FOR LAND AND MINERALS MANAGEMENT BUT MR. BACA DECLINED THE ASSIGNMENT MR. BABBITT INSISTED THAT MR. BACA'S VIEWS ON BOOSTING GRAZING FEES PAID BY RANCHERS AND ON OTHER ISSUES DON'T DIFFER FROM HIS POLICIES BUT SAID QUOTE JIM AND I HAVE DIFFERENT APPROACHES TO MANAGEMENT STYLE AND CONSENSUS BUILDING QUOTE MR. BACA HAS RILED MANY RANCHERS SENATORS AND GOVERNORS BY PUSHING ENVIRONMENTALIST POLICIES MR. BACA FORMER NEW MEXICO LAND COMMISSIONER HAD STRONG SUPPORT FROM ENVIRONMENTAL GROUPS THE GROUPS CONTENDED THAT MR. BACA WAS FORCED OUT BECAUSE HE PUSHED HARD FOR THE INTERIOR DEPARTMENT'S EFFORTS TO CHANGE GRAZING AND MINING POLICIES MR. BABBITT NAMED MICHAEL DOMBECK ACTING BUREAU DIRECTOR MR. DOMBECK IS CURRENTLY CHIEF OF STAFF TO ASSISTANT SECRETARY BOB ARMSTRONG AND ACTING DEPUTY ASSISTANT SECRETARY COLGATE PALMOLIVE COMPANY SAID FOURTH QUARTER NET INCOME ROSE ELEVEN PERCENT LED BY STRONG GAINS OVERSEAS AND IN ITS HILLS PET FOOD BUSINESS THE NEW YORK BASED CONSUMER PRODUCTS GIANT POSTED NET OF ONE HUNDRED TWENTY TWO POINT ONE MILLION DOLLARS OR SEVENTY EIGHT CENTS A SHARE UP FROM ONE HUNDRED TEN MILLION DOLLARS OR SIXTY SIX CENTS A SHARE A YEAR EARLIER REVENUE FOR THE QUARTER CLIMBED THREE POINT NINE PERCENT TO ONE POINT EIGHT FOUR BILLION DOLLARS FROM ONE POINT SEVEN SEVEN BILLION DOLLARS COLGATE SAID IT ENTERS NINETEEN NINETY FOUR WITH QUOTE INCREASING MOMENTUM QUOTE CITING A SHIFT TO HIGHER MARGIN PRODUCTS IT SAID ITS GROSS PROFIT MARGIN REACHED FORTY SEVEN POINT SIX PERCENT UP FROM FORTY SIX POINT NINE PERCENT IN THE FOURTH QUARTER OF NINETEEN NINETY TWO FOR THE FULL YEAR NET DROPPED SIXTY PERCENT TO ONE HUNDRED EIGHTY NINE POINT NINE MILLION DOLLARS OR ONE DOLLAR AND EIGHT CENTS A SHARE FROM FOUR HUNDRED SEVENTY SEVEN MILLION DOLLARS OR TWO DOLLARS AND NINETY TWO CENTS A SHARE IN NINETEEN NINETY TWO THE NINETEEN NINETY TWO RESULTS WERE DEPRESSED BY A CHARGE OF THREE HUNDRED FIFTY EIGHT POINT TWO MILLION DOLLARS OR TWO DOLLARS AND THIRTY CENTS A SHARE FOR ACCOUNTING CHANGES REVENUE FOR THE YEAR GREW ONE POINT NINE PERCENT TO SEVEN POINT ONE FOUR BILLION DOLLARS FROM SEVEN POINT OH ONE BILLION DOLLARS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE COLGATE CLOSED AT SIXTY ONE DOLLARS AND TWENTY FIVE CENTS UP FIFTY CENTS U. S. SHOE CORPORATION SAID COMPARABLE STORE SALES FOR THE FOUR WEEKS ENDED LAST SATURDAY FELL EIGHT POINT THREE PERCENT COMPARABLE STORE SALES ARE THOSE FOR STORES OPEN AT LEAST A YEAR THE CINCINNATI COMPANY SAID THE POOR WEATHER CONDITIONS IN THE EASTERN HALF OF THE U. S. AS WELL AS THE RECENT CALIFORNIA EARTHQUAKE HURT SALES RESULTS FOR THE COMPANY'S WOMEN'S APPAREL OPTICAL AND FOOTWEAR RETAILING BUSINESSES TOTAL SALES FOR THE THREE RETAILING GROUPS LAST MONTH WERE ONE HUNDRED TWENTY TWO POINT ONE MILLION DOLLARS COMPARED WITH ONE HUNDRED THIRTY SEVEN POINT FOUR MILLION DOLLARS IN JANUARY NINETEEN NINETY THREE U. S. SHOE SAID THIS REPRESENTS AN ELEVEN POINT TWO PERCENT DECREASE U. S. SHOE SAID THAT IN THE YEAR ENDED LAST SATURDAY COMPARABLE STORE SALES INCREASED ZERO POINT FIVE PERCENT TOTAL RETAIL SALES FOR THE YEAR WERE TWO POINT ONE SIX BILLION DOLLARS A ZERO POINT NINE PERCENT DROP FROM THE SAME PERIOD A YEAR EARLIER CONTINENTAL AIRLINES' NET LOSS WIDENED TO TWENTY SIX POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND FORTY SEVEN CENTS A SHARE IN THE FOURTH QUARTER FROM THIRTEEN POINT NINE MILLION DOLLARS A YEAR EARLIER THE CARRIER ATTRIBUTED THE RESULTS TO LOWER CAPACITY DUE TO THE WITHDRAWAL OF ELEVEN PLANES FROM ITS FLEET FOR OVERHAULS THE PER SHARE FIGURE FOR THE NINETEEN NINETY TWO QUARTER ISN'T AVAILABLE BECAUSE THE HOUSTON COMPANY HAS RESTATED ITS RESULTS AND ADOPTED FRESH START ACCOUNTING SINCE EMERGING FROM CHAPTER ELEVEN BANKRUPTCY LAW PROTECTION LAST APRIL CONTINENTAL'S CHIEF EXECUTIVE OFFICER ROBERT R. FERGUSON THE THIRD SAID IN A STATEMENT THAT QUOTE WE ARE NEVER SATISFIED WITH A NET LOSS BUT WE ARE CONFIDENT THAT THE NECESSARY ELEMENTS ARE COMING TOGETHER AND WILL PRODUCE SIGNIFICANTLY BETTER RESULTS IN THE FUTURE QUOTE CONTINENTAL POSTED AN OPERATING PROFIT FOR THE QUARTER OF EIGHT POINT FIVE MILLION DOLLARS COMPARED WITH AN OPERATING LOSS OF FORTY THREE POINT SIX MILLION DOLLARS A YEAR EARLIER REVENUE EDGED UP TO ONE POINT THREE SEVEN BILLION DOLLARS FROM ONE POINT THREE FOUR BILLION DOLLARS MR. FERGUSON CITED THE INTRODUCTION LAST FALL OF LOW FARE SHORT HAUL SERVICE PRIMARILY IN THE SOUTHEAST COMPANY FINANCIERE DE PARIBAS PARIS ESTIMATED YESTERDAY THAT ITS NINETEEN NINETY THREE GROUP NET INCOME ROSE FIFTY EIGHT PERCENT TO ONE POINT FOUR BILLION FRANCS TWO HUNDRED THIRTY EIGHT MILLION DOLLARS FROM EIGHT HUNDRED EIGHTY SIX MILLION FRANCS IN NINETEEN NINETY TWO PARIBAS CHAIRMAN ANDRE LEVY LANG ATTRIBUTED MUCH OF THE INCREASE TO A STRONG PERFORMANCE OF CAPITAL MARKET OPERATIONS AND BANKING OPERATIONS OF THE GROUP'S BANQUE PARIBAS UNIT PARIBAS SAID THAT ITS INDUSTRIAL PORTFOLIO CONTRIBUTED LITTLE TO GROUP PROFIT IN NINETEEN NINETY THREE BECAUSE THERE WERE FEW MAJOR ASSET SALES NEVERTHELESS IT SAID LATENT CAPITAL GAINS IN ITS INDUSTRIAL PORTFOLIO WHICH WAS VALUED AT FORTY BILLION FRANCS AT THE END OF NINETEEN NINETY THREE AMOUNT TO TEN BILLION FRANCS THE VALUE OF THE COMPANY'S FINANCIAL PORTFOLIO IS ESTIMATED AT TWENTY BILLION FRANCS GENERAL INSTRUMENT CORPORATION SAID FOURTH QUARTER NET INCOME LEAPED AMID BOOMING SALES FOR CABLE TELEVISION EQUIPMENT NET JUMPED TO THIRTY NINE POINT FIVE MILLION DOLLARS OR SIXTY FOUR CENTS A SHARE FROM SEVEN POINT TWO MILLION DOLLARS OR TWELVE CENTS A SHARE A YEAR EARLIER SALES CLIMBED THIRTY SEVEN PERCENT TO FOUR HUNDRED EIGHT POINT FOUR MILLION DOLLARS FROM TWO HUNDRED NINETY EIGHT POINT ONE MILLION DOLLARS CHICAGO BASED GENERAL INSTRUMENT REPORTED GAINS IN ALL BUSINESS AREAS INCLUDING DIGITAL COMPRESSION TECHNOLOGY CABLE T. V. SET TOP BOXES AND OTHER GEAR FOR VIDEO DISTRIBUTION AND TRANSMISSION FOR THE FULL YEAR NET INCOME WAS NINETY POINT SIX MILLION DOLLARS OR ONE DOLLAR AND FORTY EIGHT CENTS A SHARE AGAINST A LOSS OF FIFTY THREE MILLION DOLLARS OR ONE DOLLAR AND EIGHT CENTS A SHARE IN NINETEEN NINETY TWO THE NINETEEN NINETY TWO RESULTS INCLUDE A CHARGE OF ELEVEN POINT SIX MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE RELATED TO EARLY EXTINGUISHMENT OF DEBT SALES FOR THE YEAR ROSE THIRTY PERCENT TO ONE POINT THREE NINE BILLION DOLLARS FROM ONE POINT OH SEVEN BILLION DOLLARS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING GENERAL INSTRUMENT CLOSED AT FIFTY NINE POINT EIGHT SEVEN FIVE DOLLARS UP FIFTY CENTS THE U. S. AND JAPANESE GOVERNMENTS HAVE AGREED TO RESUME STALLED NEGOTIATIONS OVER REACHING A NEW TRADE QUOTE FRAMEWORK QUOTE IN WASHINGTON ON MONDAY A SENIOR JAPANESE GOVERNMENT OFFICIAL SAID THE TWO COUNTRIES ARE TRYING TO REACH AN AGREEMENT ON INCREASING FOREIGN ACCESS TO JAPANESE MARKETS IN AUTOS AND AUTO PARTS INSURANCE AND GOVERNMENT PROCUREMENT BY THE TIME PRIME MINISTER MORIHIRO HOSOKAWA MEETS IN WASHINGTON WITH PRESIDENT CLINTON NEXT FRIDAY THE TWO COUNTRIES DECIDED TO RESTART THE TALKS BETWEEN HIGH LEVEL NEGOTIATORS AFTER U. S. TRADE REPRESENTATIVE MICKEY KANTOR SPENT THE WEEK IN TOKYO MEETING WITH TOP JAPANESE POLITICIANS AND MAKING VEILED THREATS OF SANCTIONS IF AN AGREEMENT ISN'T REACHED THE SENIOR JAPANESE GOVERNMENT OFFICIAL WHO BRIEFED REPORTERS ON CONDITION OF ANONYMITY SAID THAT JAPANESE LEADERS TOLD MR. KANTOR THIS WEEK THAT JAPAN IS ADHERING TO ITS REFUSAL TO ACCEPT NUMERICAL TARGETS SCOTTS COMPANY OFFICIALS SAID THEY EXPECT SHARPLY HIGHER EARNINGS FOR THE FISCAL YEAR ENDING SEPTEMBER THIRTIETH BECAUSE OF RISING CONSUMER SPENDING ON HOMES AND YARDS AND A LARGE NUMBER OF NEW PRODUCTS OFFICIALS OF THE MARYSVILLE OHIO PRODUCER OF FERTILIZERS SOILS AND OTHER LAWN AND GARDEN PRODUCTS WERE UNWILLING TO GIVE SPECIFIC EARNINGS ESTIMATES BUT THEY DIDN'T QUARREL WITH ANALYST PROJECTIONS FOR A RISE IN PER SHARE EARNINGS OF MORE THAN TWENTY FIVE PERCENT TO ONE DOLLAR AND THIRTY FIVE CENTS A SHARE AND A SALES INCREASE OF WELL OVER THIRTY PERCENT TO BETWEEN SIX HUNDRED TWENTY FIVE MILLION DOLLARS AND SIX HUNDRED FIFTY MILLION DOLLARS IN FISCAL NINETEEN NINETY THREE SCOTTS HAD OPERATING PROFIT OF TWENTY ONE MILLION DOLLARS OR ONE DOLLAR AND SEVEN CENTS A SHARE ON SALES OF FOUR HUNDRED SIXTY SIX MILLION DOLLARS AFTER AN EXTRAORDINARY CHARGE FOR ACCOUNTING CHANGES NET INCOME WAS SEVEN POINT NINE MILLION DOLLARS OR FORTY CENTS A SHARE SAFECO CORPORATION SAID IT EXPECTS CLAIMS TO THE COMPANY FROM LAST MONTH'S EARTHQUAKE IN LOS ANGELES TO TOP FIFTY MILLION DOLLARS TRIGGERING ITS CATASTROPHE REINSURANCE COVERAGE SAFECO OF SEATTLE SAID THAT UNDER ITS REINSURANCE PROGRAM IT WILL BE REIMBURSED FOR NINETY PERCENT OF THE LOSSES BETWEEN FIFTY MILLION DOLLARS AND TWO HUNDRED MILLION DOLLARS TO DATE THE FIRE AND CASUALTY INSURANCE CONCERN SAID IT HAS HANDLED ABOUT FIVE THOUSAND FIVE HUNDRED EARTHQUAKE RELATED CLAIMS SPECIALTY RETAILER LIMITED INCORPORATED COLUMBUS OHIO SAID IT EXPECTS NET INCOME FOR THE YEAR TO TOTAL ABOUT THREE HUNDRED NINETY MILLION DOLLARS OR ONE DOLLAR AND EIGHT CENTS A SHARE A BIT LOWER THAN ITS PREVIOUS ESTIMATE OF ONE DOLLAR AND TEN CENTS TO ONE DOLLAR AND TWENTY CENTS A SHARE BASED ON NINE MONTH RESULTS THE LATEST ESTIMATE SUGGESTS FOURTH QUARTER EARNINGS OF AROUND TWO HUNDRED MILLION DOLLARS OR ABOUT FIFTY FOUR CENTS A SHARE IN THE YEAR ENDED JANUARY THIRTIETH NINETEEN NINETY THREE THE COMPANY HAD NET INCOME OF FOUR HUNDRED FIFTY FIVE POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND TWENTY FIVE CENTS A SHARE SALES FOR THE FOUR WEEK PERIOD ENDED JANUARY TWENTY NINTH FELL ONE PERCENT TO THREE HUNDRED EIGHTY TWO POINT FOUR MILLION DOLLARS WHILE SALES FOR THE TWELVE MONTHS ROSE EIGHT PERCENT TO SEVEN POINT TWO FIVE BILLION DOLLARS COMPARABLE STORE SALES FELL NINE PERCENT FOR THE FOUR WEEKS AND ONE PERCENT FOR THE YEAR LESLIE H. WEXNER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID NINETEEN NINETY THREE RESULTS WERE SLIGHTLY BELOW THE EARLIER FORECAST DUE TO SEVERE JANUARY WEATHER AND THE LOS ANGELES EARTHQUAKE MR. WEXNER SAID THE COMPANY REPURCHASED FIVE POINT THREE MILLION OF ITS COMMON SHARES DURING THE FOURTH QUARTER THE LIMITED OPERATES FOUR THOUSAND SIX HUNDRED TWENTY THREE SPECIALTY STORES AND DISTRIBUTES VICTORIA'S SECRET CATALOGUE Q. V. C. NETWORK INCORPORATED SHARES FELL YESTERDAY AS THE COMPANY TRIED TO RALLY SUPPORT FROM SHAREHOLDERS OF PARAMOUNT COMMUNICATIONS INCORPORATED WHICH CONTINUES TO FAVOR RIVAL BIDDER VIACOM INCORPORATED THE PARAMOUNT BOARD MEANWHILE IS EXPECTED TO ENDORSE VIACOM'S LATEST OFFER AT A MEETING LATER TODAY PARAMOUNT SHAREHOLDERS HAVE UNTIL FEBRUARY FOURTEENTH TO DECIDE WHICH BID TO ACCEPT AND THE BIDDER THAT GETS FIFTY POINT ONE PERCENT OF THE SHARES AT THAT POINT WINS THE CONTEST THE WINNER MUST THEN KEEP ITS OFFER OPEN ANOTHER TWO WEEKS TO ACCEPT OTHER SHARES Q. V. C. STOCK FELL EIGHTY SEVEN POINT FIVE CENTS TO FORTY FIVE POINT EIGHT SEVEN FIVE DOLLARS ON THE NASDAQ STOCK MARKET AND VIACOM CLASS B. SHARES ROSE FIFTY CENTS TO THIRTY FOUR DOLLARS ON THE AMERICAN STOCK EXCHANGE SHARES OF PARAMOUNT ROSE TWELVE POINT FIVE CENTS TO SEVENTY EIGHT POINT ONE TWO FIVE DOLLARS ON THE NEW YORK STOCK EXCHANGE BECAUSE Q. V. C.'S CASH AND STOCK BID CONTAINS ROUGHLY THREE POINT FOUR BILLION DOLLARS OF Q. V. C. STOCK CHIEF EXECUTIVE BARRY DILLER AND HIS ADVISERS HOPE TO BOOST THE DEMAND FOR Q. V. C. STOCK AMONG INSTITUTIONAL INVESTORS THEIR OBJECT IS TO PERSUADE TAKEOVER STOCK TRADERS THAT Q. V. C. SHARES WOULDN'T DECLINE AS MUCH AS THEY THINK IF Q. V. C. SUCCEEDS IN ACQUIRING PARAMOUNT Q. V. C. PLANS TO PROMOTE MR. DILLER AS A MANAGER OF ENTERTAINMENT ASSETS AND TO ATTACK VIACOM'S ALLEGED WEAKNESSES SUCH AS NEW COMPETITION IT FACES FOR ITS M. T. V. MUSIC VIDEO CABLE NETWORK VIACOM OFFICIALS SAY THEY AREN'T WORRIED ABOUT COMPETITIVE THREATS ATTORNEY GENERAL JANET RENO ISSUED PROCEDURES DESIGNED TO SPEED THE RELEASE OF DOCUMENTS IN CASES OF QUOTE EXTRAORDINARY INTEREST TO THE NEWS MEDIA QUOTE UNDER THE NEW PROCEDURES THE DEPARTMENT'S DIRECTOR OF PUBLIC AFFAIRS MAY MOVE A FREEDOM OF INFORMATION ACT REQUEST AHEAD OF OTHERS IF THERE IS EXCEPTIONAL MEDIA INTEREST IN THE CASE AND IF THE INFORMATION CONCERNS QUESTIONS RELATING TO GOVERNMENTAL INTEGRITY THE JUSTICE DEPARTMENT SAID MS. RENO AUTHORIZED AN EXEMPTION TO THE FIRST IN FIRST OUT PROCESSING AFTER ASKING WHY IT IS TAKING SO LONG TO PROCESS REQUESTS FOR REPORTS RELATING TO THE DEATH OF VINCENT FOSTER WHO WAS DEPUTY WHITE HOUSE COUNSEL AND PRESIDENT CLINTON'S PERSONAL LAWYER THOUGH THE FOSTER CASE LED TO THE NEW POLICY THOSE RECORDS MAY NOT BE IMMEDIATELY RELEASED UNDER IT SAID CARL STERN THE DEPARTMENT'S DIRECTOR OF PUBLIC AFFAIRS BEFORE THE FOSTER DOCUMENTS ARE RELEASED THEY WILL HAVE TO BE REVIEWED BY INDEPENDENT COUNSEL ROBERT FISKE WHO IS INVESTIGATING MATTERS LINKED TO MR. FOSTER'S DEATH MR. STERN EXPLAINED THE EDITOR OF THE WALL STREET JOURNAL SUED THE JUSTICE DEPARTMENT LAST WEEK BECAUSE IT HASN'T PROVIDED DOCUMENTS REQUESTED IN AUGUST UNDER THE FOIA OR GIVEN A REASON WHY IT HAS NOT WILLIAM KRISTOL HAS IT RIGHT THAT NOW IS THE TIME TO KILL THE CLINTON HEALTH PLAN OUTRIGHT RATHER THAN ATTEMPT TO PRESENT SOME MODIFIED VERSION BUT HE DOES NOT GO FAR ENOUGH IN THE RIGHT DIRECTION QUOTE HOW TO OPPOSE THE HEALTH PLAN AND WHY QUOTE EDITORIAL PAGE JANUARY ELEVENTH MR. KRISTOL IS RIGHT WHEN HE SAYS THE PRESIDENT'S PLAN WOULD HAVE A SERIOUSLY DELETERIOUS EFFECT ON THE QUALITY OF MEDICAL CARE IS UNNECESSARY THAT THERE IS NO HEALTH CRISIS THAT THE PLAN WOULD GUARANTEE AN UNPRECEDENTED INTRUSION INTO THE ECONOMY AND WOULD SIGNAL A REBIRTH OF CENTRALIZED WELFARE STATE POLICY AT THE VERY MOMENT THAT THIS IS PERCEIVED AS A FAILURE AROUND THE WORLD WHERE HE GOES WRONG IS IN NOT TAKING THE NEXT STEP RECOGNIZING THAT THE PROBLEM IS ENTIRELY CAUSED BY THE INSURANCE SYSTEM ITSELF AND THAT NO TINKERING WITH IT WILL SOLVE THE PROBLEM FORTY TWO PERCENT OF CURRENT MEDICAL CARE COST IS ADMINISTRATIVE OVERHEAD TO SHUFFLE INSURANCE PAPER AND INSURANCE IS RESPONSIBLE FOR ADDED COSTS THAT TOTAL AN INCREDIBLE SEVENTY FIVE CENTS ON THE DOLLAR OF HEALTH COSTS BY TERMINATING MEDICAL INSURANCE PAYMENT FOR MEDICAL CARE THE FEDERAL LEGISLATION MR. KRISTOL PROPOSES TO FIX THE SEVERAL PROBLEMS HE DISCERNS IN AMERICAN HEALTH CARE BECOME UNNECESSARY INCLUDING MAKING INSURANCE PORTABLE FROM JOB TO JOB ENDING LIMITS ON PRE EXISTING CONDITIONS SIMPLIFYING HEALTH CARE PAPERWORK ET CETERA THE PRESENT SYSTEM IS AKIN TO INSURING THE PATIENT'S OIL CHANGES WHEN IT SHOULD BE LIMITED TO HELPING HIM PAY FOR A MAJOR CAR ACCIDENT TO THAT END SUPER CATASTROPHIC MEDICAL INSURANCE PURCHASED BY THE INDIVIDUAL AND NOT BY THE EMPLOYER IS THE ONLY KIND THAT SHOULD BE IN PLACE AS SUGGESTED BY MILTON FRIEDMAN ABSENCE OF INSURANCE DEEP POCKETS WOULD MAKE IT NECESSARY FOR DOCTORS AND HOSPITALS TO LOWER FEES AGAIN TO LEVELS PEOPLE COULD AFFORD AND WOULD HAVE THE SECONDARY BENEFIT OF RESTORING THE PHYSICIAN'S PROFESSIONAL IMAGE A MEDICAL SAVINGS ACCOUNT TAX DEDUCTIBLE FOR THE INDIVIDUAL WHICH IS NOT PRESENTLY THE CASE AND WHICH WOULD ACCUMULATE IF NOT SPENT AND ROLLED INTO THE PATIENT'S RETIREMENT PLAN WOULD ENCOURAGE THE PATIENT'S CLOSE MONITORING OF COST AND WOULD REPRESENT TRUE MANAGED CARE LOWERING EXPENSES DRASTICALLY THE RENEWAL OF THE OLD FASHIONED DOCTOR PATIENT RELATIONSHIP WOULD PREVENT WASTE FRAUD AND ABUSE NOT THE CASE WITH THE PRESENT INTRUSION OF THE THIRD PARTY INSURANCE PAYER WHERE THERE IS INCENTIVE NEITHER TO PATIENT NOR DOCTOR TO CURB COSTS MALPRACTICE REFORM CERTAINLY AS HE SUGGESTS SHOULD BE INSTITUTED BUT IN ADDITION THE RENEWAL OF A CLOSE RELATIONSHIP BETWEEN DOCTOR AND PATIENT IN ITSELF WOULD HELP TO LOWER MALPRACTICE CLAIMS PEOPLE WILL BE EXPECTED TO SAVE FOR MEDICAL CARE AGAIN AS THEY DO FOR COLLEGE COSTS AND RETIREMENT AND THOSE WHO ARE NEGLIGENT WILL PAY A PRICE EVEN MEDICARE AND MEDICAID SHOULD BE REPLACED BY A WELFARE TYPE OF MEDICAL CARE FOR THOSE IN NEED FUNDED AS IN THE PAST IN PART BY DOCTORS' FREE MEDICAL CARE TO THE INDIGENT AND BY PUBLIC AND PRIVATE CHARITY FOR THOSE WHO HAVE NOT BEEN ABLE TO SAVE FOR MEDICAL CARE ONE MORE THING LITTLE NOTICED IN THE INSURANCE SYSTEM CONTROL OF MEDICINE HAS BEEN ITS OBLITERATION OF THE IDEAL OF EXCELLENCE THE TERM HEALTH CARE PROVIDER WAS INTRODUCED EARLY ON BY INSURANCE CARRIERS IN A CLEAR ATTEMPT TO DE PROFESSIONALIZE THE IMAGE OF THE DOCTOR WHAT THE TERM IMPLIES IS THAT ONE DOCTOR IS NO BETTER NOR WORSE THAN ANY OTHER DOCTOR AND THAT MOREOVER NOT ONLY ARE DOCTORS FUNGIBLE BUT THE NURSES PHYSICIAN ASSISTANTS OPTOMETRISTS SOCIAL WORKERS AND PSYCHOLOGISTS ET CETERA ALL OF WHO ARE ALSO PROVIDERS ARE FUNGIBLE WITH DOCTORS AND WILL BE USED BY THE INSURANCE COMPANIES IN THE INTERESTS OF THEIR BOTTOM LINE IF ARTISTS WERE JUDGED BY THE SIZE OF THEIR EXHIBITIONS ROBERT MORRIS WOULD BE UP THERE WITH MICHELANGELO HE IS CURRENTLY OCCUPYING MORE GALLERY SPACE HERE THAN ANY OTHER ARTIST LIVING OR DEAD THE RETROSPECTIVE EXHIBITION OF HIS WORK OPENING TODAY AT THE SOLOMON R. GUGGENHEIM MUSEUM IS A TWO VENUE AFFAIR SPILLING OVER FROM THE FIFTH AVENUE HEADQUARTERS TO THE MUSEUM'S BARNLIKE SOHO BRANCH ARGUABLY MR. MORRIS EVEN DESERVES SUCH TREATMENT ALONG WITH DONALD JUDD AND CARL ANDRE HE WAS A FOUNDER OF MINIMALISM IN THE NINETEEN SIXTIES HIS THEORETICAL WRITINGS HAVE MADE HIM ONLY MORE CENTRAL TO THE MOVEMENT WHOSE LEAN UNDERSTATED WORKS ARE PRESUMED TO NEED A THICK USER'S MANUAL OR AT LEAST AN ACCOMPANYING TEXT TO ENSURE WE UNDERSTAND THEM QUOTE ROBERT MORRIS THE MIND SLASH BODY PROBLEM QUOTE UP THROUGH APRIL SEVENTEENTH IS IN KEEPING WITH THIS SPIRIT OF PONTIFICATION YOU WALK IN AND ALREADY YOU'RE ON THE INTELLECTUAL DEFENSIVE WONDERING ABOUT THAT PHRASE MIND SLASH BODY AND TRYING TO REMEMBER THE LECTURE ON DESCARTES FROM PHILOSOPHY ONE HUNDRED ONE IS IT THAT THE MIND AND THE SENSES ARE DESTINED TO REMAIN SEPARATE FORGET IT THE EXHIBITION ORGANIZED BY THOMAS KRENS THE MUSEUM'S DIRECTOR AND ROSALIND KRAUSS A STAR OF THE ACADEMIC CIRCUIT ISN'T ABOUT CARTESIAN PHILOSOPHICAL TRADITIONS THE ONE HUNDRED SEVENTY OBJECTS ON VIEW WHICH RANGE FROM MINIMALIST SCULPTURES TO MAXIMALIST PAINTINGS TO VIDEO SCREENS FLASHING WITH FOOTAGE OF MR. MORRIS IN THE BUFF OFTEN SEEM CLOSE TO ANOTHER COLLEGE EXPERIENCE REBELLION CULTIVATED FOR ITS OWN POINTLESS SAKE MUCH WAS SACRIFICED TO THIS GOAL AS I WAS REMINDED IN FRONT OF A PIECE CALLED STADIUM A REFABRICATION OF A NINETEEN SIXTY SEVEN SCULPTURE IN WHICH EIGHT MASSIVE WEDGES OF STEEL ARE ARRANGED LIKE PIE PIECES INTO A CIRCLE IN PREPARATION FOR THE SHOW'S OPENING A MUSEUM EMPLOYEE WITH A BLOND PONYTAIL WAS PAINTING THE SCULPTURE GRAY WITH THE HELP OF A ROLLER I ASKED HIM WHY HE WAS APPLYING FINISHING TOUCHES TO A WORK THAT WAS NOT HIS OWN HE POLITELY REPLIED THAT MR. MORRIS ROUTINELY ENTRUSTED THE REFABRICATION OF HIS SCULPTURES TO OTHERS WE TREAT THE WORK LIKE ARCHITECTURE HE SAID WE PAINT IT THE WAY WE PAINT THE BATHROOMS HERE OR ANYTHING ELSE SUCH CAVALIER INDIFFERENCE TO CRAFT IS OF COURSE A HALLMARK OF MINIMALISM WHICH SOUGHT TO GET THE HAND OUT OF ART AND TO PUT THE BRAIN IN OR SO THE RHETORIC WENT LATELY THERE'S BEEN A REVIVAL OF INTEREST IN THE MOVEMENT AT A TIME WHEN SO MUCH CONTEMPORARY ART SCREAMS WITH CHARGES OF RACISM SEXISM AND OTHER FORMS OF VICTIMIZATION PERHAPS WE'RE NOSTALGIC FOR MINIMALISM'S MUTE SURFACES AND THE PRINCELY ALOOFNESS OF ITS CREATORS STILL THE MINIMALISM WE'RE SEEING ISN'T SO MINIMAL AFTER ALL THE ROBERT RYMAN SHOW AT THE MUSEUM OF MODERN ART IN THE FALL GAVE US AN ARTIST WHO HAS PAINTED EXCLUSIVELY IN WHITE FOR DECADES BUT WHO AT HIS BEST IS REALLY A CLOSET EXPRESSIONIST AND NOW HERE'S ROBERT MORRIS WHO HAS BEEN VERY CLEAR ABOUT WHAT HE CONSIDERS EXPENDABLE IN ART IN HIS NINETEEN SIXTY SIX ESSAY NOTES ON SCULPTURE HE OBSERVED THE SENSUOUS OBJECT RESPLENDENT WITH COMPRESSED INTERNAL RELATIONS HAS TO BE REJECTED THE IRONY IS IT'S PRECISELY AS A MAKER OF QUOTE SENSUOUS OBJECTS QUOTE THAT HE EXCELS TO BE SURE MR. MORRIS BEGAN HIS CAREER WITH PLAIN AND SIMPLE OBJECTS MADE FROM L. BEAMS AND I BEAMS AND WENT ON TO PRODUCE NEODADA ASSEMBLAGES THAT RELATE CLOSELY TO THE WORK OF JASPER JOHNS BUT IN SPITE OF HIS MINIMALIST EXHORTATIONS IT WASN'T UNTIL MR. MORRIS DISAVOWED HIS OWN RHETORIC IN THE SEVENTIES THAT HIS ART REALLY FLOURISHED HIS CAREER SUGGESTS THAT IN REMOVING THE HAND FROM ART ARTISTS REMOVED TOO MUCH IF NOT EVERYTHING THAT MAKES ART INTERESTING MR. MORRIS'S FELT PIECES LOOK GOOD AT THE GUGGENHEIM THE VERY WORD FELT HINTS PUNNINGLY AT A SWITCH IN ALLEGIANCES ON HIS PART A CONVERSION TO AN ART THAT IS FELT OR DISCOVERED RATHER THAN MERELY DEDUCED I PARTICULARLY LIKED UNTITLED SHOULDER OF NINETEEN SEVENTY THREE IN WHICH A THREE LAYERED BAND OF INDUSTRIAL FELT IS TACKED TO THE WALL ITS SIDES FOLDED DOWN LIKE ORIGAMI IT HAS A WEIRDLY HOVERING PRESENCE AND LOOKS LIKE A CROSS BETWEEN A MARK ROTHKO AND A BATHROBE A GOOD PORTION OF THE GUGGENHEIM SHOW IS DEVOTED TO MR. MORRIS'S DRAWINGS WHICH SIMILARLY ABOUND WITH TACTILE EFFECTS A SERIES FROM THE SEVENTIES CALLED DRAWING BLINDFOLDED WAS EXECUTED AS DESCRIBED IN SPITE OF THIS OLD SURREALIST RUSE AND ALL IT IMPLIES ABOUT OPENNESS TO RISK THE DRAWINGS SUCCEED AS TRADITIONAL ABSTRACTIONS MAYBE HE PEEKED MADE BY SMUDGING GRAPHITE ON FIBERGLASS PAPER THEY'RE DENSE WITH BLACK FINGERPRINTS AND ALTERNATIVELY SUGGEST THE TREADS OF A TIRE FLYING BEES AND FLUFFY CUMULUS CLOUDS MORE RECENTLY MR. MORRIS HAS TURNED TO THOUGHTS OF NUCLEAR HOLOCAUST AND GLOBAL DESTRUCTION YET HIS DRAWINGS REMAIN ENTIRELY ELEGANT LESS A REFLECTION OF VEHEMENT POLITICS THAN OF EIGHTEENTH CENTURY VENETIAN PAINTING A WORK SUCH AS UNTITLED FIRESTORM OF NINETEEN EIGHTY TWO EXPLOITS THE BLACK MAGIC OF CHARCOAL FOR AIRY VAPOROUS EFFECTS AS IF A TIEPOLO HAD BEEN CAUGHT IN A FIRE AND EMERGED COVERED WITH SOOT FOR ME THE DRAWINGS WERE THE HIGH POINT OF THE SHOW THOUGH OTHERS I SUPPOSE WILL FAVOR THE INSTALLATION DOWNTOWN THERE MR. MORRIS HAS ARRANGED NINE LARGE SCALE MIRROR WORKS TO CREATE A FUN HOUSE OF OPTICAL TRICKS IN ONE UNTITLED PIECE FROM NINETEEN SEVENTY FIVE YOU PEER THROUGH A SUCCESSION OF STEEL FRAMES SUSPENDED FROM THE CEILING ONLY TO FIND THAT THE FACE REFLECTED IN THE MIRROR BEFORE YOU BELONGS TO SOMEBODY ELSE IN THE ROOM IT'S SUPPOSED TO BE DEEP A LESSON IN THE ARTIFICIALITY OF IMAGES BUT SEEING HEADS INSIDE ALL THOSE CUBES REMINDED ME OF NOTHING SO MUCH AS THE T. V. GAME SHOW QUOTE HOLLYWOOD SQUARES QUOTE SPEAKING OF PERFORMERS IT'S WORTH POINTING OUT THAT A PHOTO OF MR. MORRIS APPEARS ON THE COVER OF THE CATALOG HE'S NUDE FROM HEAD TO TOE SMILING SMUGLY WICKEDLY EVEN AS HE EXPOSES HIS ANATOMY LIKE JOHN AND YOKO ON AN ALBUM COVER HIS BODY IS ENCASED INSIDE A CUTOUT OF THE LETTER I. THE IMAGE IS FROM HIS I BOX NINETEEN SIXTY TWO AND IT'S MEANT TO HARK BACK TO THE CARTESIAN MIND BODY SCHISM THAT'S THE THEME OF THIS SHOW HOW CAN THE BODY CAUSE THE MIND TO HAVE SENSIBLE IDEAS THE QUESTION IS NEVER ANSWERED BY THIS EXHIBITION WHICH BRANCHES IN TOO MANY DIRECTIONS AT ONCE WHILE OFFERING UP PERSONALITY IN PLACE OF PROFUNDITY MR. MORRIS MAY HAVE BROODED LONG AND HARD ON DESCARTES BUT THE ULTIMATE MESSAGE OF HIS WORK IS I THINK BUT NOT ENOUGH ZENITH ELECTRONICS CORPORATION SAID THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM HAS JUST WITHDRAWN A SHAREHOLDER PROPOSAL SEEKING TO CREATE A QUOTE LEAD INDEPENDENT DIRECTOR QUOTE AT ZENITH AFTER GAINING QUOTE ADDITIONAL INSIGHT QUOTE ABOUT THE COMPANY'S GOVERNANCE HENCE ZENITH SAYS IT SHOULDN'T HAVE BEEN INCLUDED IN AN ARTICLE WEDNESDAY AS ONE OF THE COMPANIES TARGETED BY CALPERS FOR SPRING PROXY FIGHTS ABOUT CORPORATE GOVERNANCE ISSUES UNITED TECHNOLOGIES CORPORATION'S PRATT AND WHITNEY DIVISION CLAIMED A SIGNIFICANT VICTORY AS IT BEAT OUT MAJOR RIVALS FOR JAPAN AIRLINES AIRCRAFT ENGINE ORDERS WITH A POTENTIAL VALUE OF FOUR HUNDRED FIFTY MILLION DOLLARS PRATT AND WHITNEY SAID THE JAPANESE CARRIER SELECTED ITS QUOTE HIGH THRUST QUOTE P. W. FOUR THOUSAND OVER ENGINES MADE BY GENERAL ELECTRIC COMPANY AND BY ROLLS ROYCE P. L. C. THE SALE MEANS THAT PRATT AND WHITNEY WHICH FELL OUT OF FAVOR WITH JAPANESE AIRLINES BACK IN THE LATE NINETEEN EIGHTIES NOW WOULD BE AN ENGINE SUPPLIER TO ALL THREE MAJOR JAPANESE AIRLINES KARL KRAPEK PRESIDENT OF PRATT AND WHITNEY CONTENDED THAT THE SALE GIVES THE EAST HARTFORD CONNECTICUT JET ENGINE MAKER A FIFTY ONE PERCENT SHARE OF THE HOTLY CONTESTED MARKET FOR A NEW GENERATION OF ENGINES TO POWER LONGRANGE WIDE BODIED AIRCRAFT G. E.'S G. E. NINETY AND ROLLS ROYCE'S TRENT EIGHT HUNDRED ENGINES ARE THE MAIN COMPETITORS G. E. AND ROLLS ROYCE COULDN'T BE REACHED FOR COMMENT UNLIKE THE ALL NEW G. E. AND ROLLS ROYCE ENGINES PRATT AND WHITNEY'S ENGINE IS DERIVED FROM ITS OLDER FAMILY OF ENGINES P. W. FOUR THOUSAND INTRODUCED IN NINETEEN EIGHTY SEVEN MR. KRAPEK SAID THE NEW HIGH THRUST VERSION AND THE OLDER ENGINE HAVE EIGHTY FIVE PERCENT OF THEIR PARTS IN COMMON WE THINK OUR DERIVATIVE APPROACH IS FAVORED BY JAPAN AS THE LEAST RISK APPROACH HE SAID ADDING THAT THE OLDER ENGINE WILL HAVE ABOUT TEN MILLION HOURS OF FLYING TIME WHEN JAPAN AIRLINES PUTS THE NEW HIGH THRUST VERSION ON ITS NEW FLEET OF BOEING SEVEN HUNDRED SEVENTY SEVEN PLANES PRATT AND WHITNEY WAS THE SOLE ENGINE SUPPLIER FOR A LONG TIME TO JAPAN AIRLINES THEN IN NINETEEN EIGHTY SEVEN THE AIRLINER PICKED G. E. OVER PRATT AND WHITNEY TO POWER A FOUR ENGINE WIDE BODIED PLANE JAPAN AIRLINES WAS VERY CRITICAL OF OUR TECHNICAL SUPPORT AND DELAYS IN DELIVERING PARTS A SPOKESMAN SAID PRATT AND WHITNEY RETURNED HOWEVER IN NINETEEN EIGHTY NINE BY WINNING ORDERS FOR ENGINES TO POWER JAPAN AIRLINES' THREE ENGINE LONGRANGE PLANES THE LATEST CONTRACT INCLUDES FIRM ORDERS VALUED AT TWO HUNDRED FORTY MILLION DOLLARS FOR TWENTY INSTALLED ENGINES AND FOUR SPARES AND OPTIONS FOR ANOTHER TWENTY ENGINES FOR AN ESTIMATED TWO HUNDRED TEN MILLION DOLLARS PRATT AND WHITNEY SAID DELIVERIES WILL BEGIN IN NINETEEN NINETY FIVE AND RUN THROUGH NINETEEN NINETY NINE UNITED TECHNOLOGIES IS BASED IN HARTFORD CONNECTICUT JAPAN KEEPS GETTING HARDER TO GOVERN THE GOVERNMENT FRIDAY MORNING SHELVED CONTROVERSIAL PLANS FOR A TAX CUT AFTER A DISPUTE THREATENED TO TEAR APART THE RULING COALITION QUOTE WE HAVE DECIDED TO GO BACK TO THE DRAWING BOARD QUOTE SAID ICHIRO OZAWA A KEY COALITION LEADER BUT FINANCE MINISTRY OFFICIALS WERE CONFIDENT THAT A PACKAGE INCLUDING TAX CUTS WILL BE WORKED OUT BEFORE PRIME MINISTER MORIHIRO HOSOKAWA MEETS PRESIDENT CLINTON AT THEIR WASHINGTON SUMMIT NEXT FRIDAY THE DISCUSSION HAS RETURNED TO SQUARE ONE BUT IT DOESN'T MEAN THERE WON'T BE A TAX REDUCTION SAID ONE MINISTRY OFFICIAL THE FRACAS REFLECTS THE POLITICAL MAYHEM THAT HAS STALLED ECONOMIC PLANNING FOR MONTHS AS MR. HOSOKAWA AND HIS RULING COALITION HAVE BEEN CAUGHT IN A TUG OF WAR OVER A CRITICAL ECONOMIC STIMULUS PACKAGE MOST RECENT BATTLES HAVE BEEN LIMITED TO JAPAN'S POLITICAL WORLD THE FINANCE BATTLE HAS ENGULFED THE MIGHTY BUREAUCRACY WHICH TRIED TO TAKE ADVANTAGE OF THE POLITICAL INSTABILITY TO PUSH ITS OWN AGENDA BUT QUICKLY GOT CAUGHT IN THE CROSSFIRE TAX POLICY IS AT THE HEART OF THE DISPUTE THE LATEST STRUGGLE BEGAN EARLY THURSDAY WHEN MR. HOSOKAWA PROPOSED CUTTING INCOME TAXES AND OTHER LEVIES BY SIX TRILLION YEN FIFTY FIVE BILLION DOLLARS THE CENTERPIECE OF HIS PLAN TO SPUR BUSINESS ACTIVITY TO OFFSET THE REVENUE LOSS AND TO APPEASE THE FISCAL CONSERVATIVES AT THE MINISTRY OF FINANCE HE SAID THE GOVERNMENT WOULD REPLACE THE NATION'S THREE PERCENT SALES TAX IN NINETEEN NINETY SEVEN WITH A SEVEN PERCENT NATIONAL WELFARE TAX A EUPHEMISM FOR A EUROPEAN STYLE VALUE ADDED TAX THE ANNOUNCEMENT TOUCHED OFF ONE OF THE MOST HECTIC DAYS IN MR. HOSOKAWA'S STORMY SIX MONTH REIGN THE SOCIALISTS THE LARGEST BLOC IN HIS GOVERNMENT AND LONG TIME OPPONENTS OF SALES LEVIES PROMPTLY THREATENED TO LEAVE THE COALITION EVEN MEMBERS OF MR. HOSOKAWA'S OWN PARTY WHO SUPPORT THE PLAN IN BROAD OUTLINE ACCUSED HIM OF HATCHING THE PROGRAM IN BACKROOM BARGAINING I CAN'T UNDERSTAND WHY MR. HOSOKAWA TOOK A POLICY LINE TOTALLY DICTATED BY THE FINANCE MINISTRY SAID SHUN OHIDE A SENIOR SOCIALIST LEGISLATOR THIS SQUALL IS PARTICULARLY UNNERVING FOR THE U. S. GOVERNMENT WHICH IS URGENTLY DEMANDING PROGRESS IN STALLED TRADE TALKS BEFORE THE PLANNED SUMMIT BETWEEN MR. HOSOKAWA AND PRESIDENT CLINTON WITH JUST OVER A WEEK TO GO U. S. TRADE REPRESENTATIVE MICKEY KANTOR IS NOW IN TOKYO TRYING TO FORCE MR. HOSOKAWA AND OTHER TOP POLITICIANS TO FOCUS ON THE NEGOTIATIONS MR. KANTOR REFUSED TO MAKE ANY PUBLIC ASSESSMENT OF HIS MEETINGS BUT DID TELL REPORTERS THAT HE HAD A VERY GOOD SESSION THURSDAY WITH MR. HOSOKAWA WHILE FORCING SOME DELAYS THE TAX POLICY DISPUTE PROBABLY WON'T DERAIL MR. HOSOKAWA'S ECONOMIC STIMULUS PACKAGE JAPAN'S LEADERS ARE UNDER INTENSE PRESSURE FROM BUSINESS EXECUTIVES AND THE CLINTON ADMINISTRATION TO SPUR DOMESTIC DEMAND AND IMPORTS AND EVEN IF THE SOCIALISTS DO ABANDON MR. HOSOKAWA MOST ANALYSTS THINK HE COULD SURVIVE FOR A WHILE AS THE HEAD OF A GOVERNMENT WITH A PARLIAMENTARY MINORITY BUT HOWEVER THE TAX TUSSLE ENDS IT HIGHLIGHTS THE DISTURBING INSTABILITIES OF THE NEW ERA OF COALITION RULE WHILE MR. HOSOKAWA'S SALES TAX DECISION MAY HAVE PLEASED JAPAN'S ELITE BUREAUCRATS IT RISKS UNDERMINING HIS CONSIDERABLE POPULARITY AFTER HIS TAX ANNOUNCEMENT THE PRIME MINISTER TOOK HIS WORST PUBLIC TONGUE LASHING SINCE TAKING POWER THE ASAHI SHIMBUN NEWSPAPER RAN A FRONT PAGE ARTICLE BLASTING HIS TAX MOVE AS ABRUPT AND UNCONVINCING OVER THE LONGER TERM THE NEW ERA OF MULTIPARTY RULE EXPOSES FINANCE POLICY TO GREATER PUBLIC DEBATE ENDANGERING THE BUREAUCRATS' CONTROL OF THE AGENDA QUOTE THERE ARE SOME PEOPLE WHO WANT TO GET SOCIAL SECURITY COVERAGE WITHOUT PAYING THE BURDEN QUOTE SAID RYUTARO HASHIMOTO A FORMER LIBERAL DEMOCRAT FINANCE MINISTER IN AN INTERVIEW LAST MONTH ECONOMIC MEASURES WILL BECOME AN ISSUE MASAYOSHI KANABAYASHI CONTRIBUTED TO THIS ARTICLE NISSAN MOTOR COMPANY IN AN UNPRECEDENTED MOVE SAID IT WILL BUY BACK ALL THE ESTIMATED THIRTY THREE THOUSAND NISSAN VANS IT SOLD FROM NINETEEN EIGHTY SEVEN TO NINETEEN NINETY BECAUSE OF POTENTIAL ENGINE FIRES THE PROGRAM COULD COST NISSAN AS MUCH AS ONE HUNDRED EIGHTY MILLION DOLLARS ACCORDING TO INDUSTRY OFFICIALS THE MOVE COMES FIVE MONTHS AFTER NISSAN LAUNCHED ITS FOURTH RECALL OF THE NISSAN VAN CODE NAMED C. TWENTY TWO THE JAPANESE AUTO MAKER HAS ALREADY REPURCHASED ONE THOUSAND THREE HUNDRED FIFTY VANS THAT WERE TOO EXPENSIVE TO REPAIR AND HAD THEM DESTROYED NISSAN SAID IT IS OFFERING TO BUY BACK THE VANS TO KEEP ITS CUSTOMERS SATISFIED QUOTE WE CAN'T RUN AWAY FROM AN ISSUE JUST BECAUSE WE THINK IT'S A FINANCIAL HARDSHIP QUOTE SAID EARL HESTERBERG VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S NISSAN DIVISION BRAND IMAGE IS VERY IMPORTANT WE BELIEVE THAT SHOULD STAND BEHIND THE PRODUCT BUT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION MADE CLEAR THAT IT EXPECTED SOME MORE AGGRESSIVE ACTION SAID BILL BOEHLY THE N. H. T. S. A.'S ASSOCIATE ADMINISTRATOR HE SAID HE IS PLEASED WITH THE BUYBACK PLAN AND URGED VAN OWNERS TO ACCEPT THE OFFER NISSAN OFFICIALS DECLINED TO COMMENT ABOUT HOW MUCH THE COMPANY WILL PAY BUT INDUSTRY EXPERTS EXPECT NISSAN TO PAY AN AVERAGE OF SIX THOUSAND DOLLARS A VEHICLE DEPENDING ON ITS CONDITION NISSAN SAID IT ALSO SETTLED A CLASS ACTION SUIT FILED BY NISSAN VAN OWNERS WHO HAD SOUGHT TO FORCE THE COMPANY TO REFUND THE FULL RETAIL PRICE OF THE VEHICLES AS PART OF THE SETTLEMENT OWNERS OF THE NINETEEN EIGHTY SEVEN TO NINETY VANS WILL ALSO RECEIVE A FIVE HUNDRED DOLLAR COUPON TOWARD THE PURCHASE OF ANOTHER NISSAN VEHICLE THE COUPON WHICH EXPIRES AT THE END OF THE YEAR COULD COST NISSAN AN ADDITIONAL FIFTEEN MILLION DOLLARS IF EVERY NISSAN VAN OWNER CASHED IN THE PROBLEM WITH THE VANS ORIGINATES WITH THE FAN BELT WHICH IF IT BREAKS COULD CAUSE THE MINIVAN TO OVERHEAT POSSIBLY RESULTING IN FIRES IN THE ENGINE COMPARTMENT NISSAN WILL NOTIFY OWNERS OF THE NINETEEN EIGHTY SEVEN TO NINETY MODEL YEAR VANS OF THE REFUND OFFER WHICH EXPIRES ONE HUNDRED TWENTY DAYS AFTER RECEIPT OF THE LETTER OWNERS ACCEPTING THE OFFER WILL RECEIVE A CHECK FOR THE CURRENT RETAIL VALUE OF THE NISSAN VAN BUT NISSAN'S LONG RUNNING TROUBLES WITH THE VANS MAY NOT BE OVER YESTERDAY FOUR SURVIVING CHILDREN OF AN ORLANDO COUPLE THAT DIED IN A NINETEEN EIGHTY EIGHT NISSAN VAN FILED A SUIT AGAINST NISSAN IN ORANGE COUNTY CIRCUIT COURT IN FLORIDA CLAIMING THAT DEFECTS CAUSED THE CRASH THAT RESULTED IN THEIR PARENTS' DEATH EARL AND GEORGIA F. ADAMS WERE KILLED DECEMBER TENTH WHEN THEIR NINETEEN EIGHTY EIGHT NISSAN VAN VEERED OFF THE ROAD CRASHED INTO A TRACTOR TRAILER AND EXPLODED JOHN OVERCHUCK AN ATTORNEY REPRESENTING THE CHILDREN SAID THE SUIT SEEKS MORE THAN FIFTEEN THOUSAND DOLLARS IN DAMAGES IN CARSON CALIFORNIA A NISSAN SPOKESMAN SAID THE SUIT IS WITHOUT MERIT WE HAVE INVESTIGATED THE ACCIDENT AND IT HAS NOTHING TO DO WITH THE RECALL CONDITION THE NISSAN SPOKESMAN SAID IT IS A CAR CRASH AS FOR THE BUYBACK SEAN KANE SENIOR ASSOCIATE AT FOR RALPH HOAR AND ASSOCIATES AN ARLINGTON VIRGINIA RESEARCH FIRM CALLED IT QUOTE TOO LITTLE TOO LATE QUOTE HIS ORGANIZATION HAD PETITIONED THE N. H. T. S. A. LAST YEAR TO ORDER NISSAN TO REPURCHASE ALL THE VANS THE N. H. T. S. A. HAD DENIED THAT PETITION AFTER NISSAN AGREED TO CONDUCT THE FOURTH RECALL LAST AUGUST THERE HAVE BEEN SOME ONE HUNDRED SIXTY REPORTS OF FIRES IN THE VANS NISSAN SAID ALTHOUGH NOT ALL OF THEM WERE CAUSED BY ENGINE COMPARTMENT PROBLEMS THE NISSAN SPOKESMAN SAID THERE HAVE BEEN NO SERIOUS INJURIES OR FATALITIES RELATED TO PRODUCT DEFECTS THE REPAIRS MADE IN THE RECALLS NEVER RESOLVED THE PROBLEM NISSAN IS ON THE COMEBACK TRAIL WITH A HOT SELLING MINIVAN AND MIDSIZED SEDAN AND SAW THE RECURRING RECALLS AS A STAIN ON ITS IMAGE THE BUYBACK DOESN'T INCLUDE NISSAN'S CURRENT QUEST MINIVAN BUT COVERS AN EARLIER MINIVAN THAT NISSAN STOPPED BUILDING IN NINETEEN NINETY NISSAN DEALERS ARE HOPEFUL THAT THIS ACTION WILL CLOSE THE BOOK ON THIS RECALL DEBACLE THIS VAN WAS A PROBLEM CHILD TO START WITH SAID JOHN BALDWIN NEW CAR MANAGER AT GREEN GIFFORD MOTOR NORFOLK VIRGINIA NISSAN HAS GONE THE EXTRA MILE TO SOOTH THOSE NERVES BUT IT'S BEEN A COMEDY OF ERRORS ASIA'S INSATIABLE DEMAND FOR ELECTRICITY WILL SPUR THE REGION TO PLACE MORE THAN FORTY FIVE PERCENT OF ALL GLOBAL ORDERS FOR POWER GENERATION EQUIPMENT OVER THE NEXT TEN YEARS ACCORDING TO A GENERAL ELECTRIC COMPANY FORECAST INDUSTRIALIZATION RURAL ELECTRIFICATION AND SIMPLY THE QUOTE CONSUMERISM OF A GROWING MIDDLE CLASS QUOTE ARE AMONG THE REASONS WHY ASIA IS RIGHT NOW QUOTE THE WORLD'S HOTTEST MARKET QUOTE FOR SUCH EQUIPMENT SAID DELBERT WILLIAMSON PRESIDENT OF G. E.'S ASIAN INDUSTRIAL AND POWER SYSTEMS UNIT HE PREDICTED THAT THE REGION WILL ORDER MORE THAN FOUR HUNDRED SIXTY GIGAWATTS OF ELECTRIC POWER IN TEN YEARS OR MORE THAN WHAT THE U. S. CANADA AND MANY OTHER WESTERN COUNTRIES COMBINED WILL PUT ON ORDER MR. WILLIAMSON PRESENTED HIS FORECAST AT A WASHINGTON CONFERENCE EARLIER THIS WEEK ON POWER REQUIREMENTS IN THE ASIAN PACIFIC REGION HE SAID THE FORECAST IS BASED ON G. E.'S ANALYSIS OF VARIOUS NATIONAL AND REGIONAL ENERGY PLANS FUEL AVAILABILITY AND PRICE PROJECTIONS AND OTHER FACTORS GAS AND STEAM TURBINES NUCLEAR REACTORS AND COGENERATION PLANTS ARE AMONG THE KINDS OF EQUIPMENT THAT G. E. REFERS TO G. E. IS ESSENTIALLY FORECASTING A CONTINUATION OF AN ALREADY EVIDENT BUYING TREND THE REGION ORDERED ONE HUNDRED SEVENTY TWO GIGAWATTS OF POWER IN THE FIVE YEAR PERIOD BETWEEN NINETEEN EIGHTY EIGHT TO NINETEEN NINETY TWO IN THE NEXT FIVE YEARS ASIA WILL ORDER TWO HUNDRED TWENTY TWO GIGAWATTS MORE AND ANOTHER TWO HUNDRED THIRTY EIGHT GIGAWATTS IN NINETEEN NINETY EIGHT TO TWO THOUSAND TWO THE FORECAST SAYS A GIGAWATT IS A THOUSAND MEGAWATTS BY WAY OF COMPARISON A ONE THOUSAND NINE HUNDRED MEGAWATT PLANT CAN GENERATE ENOUGH POWER TO SUPPLY THE NEEDS OF DETROIT OR ANY OTHER MODERN CITY WITH A POPULATION OF ONE POINT THREE MILLION TWO DEVELOPING COUNTRIES CHINA AND INDIA WILL ACCOUNT FOR JUST ABOUT HALF OF THOSE REGIONAL ORDERS THE HONG KONG BASED G. E. UNIT SAID UNQUESTIONABLY THE BIGGEST OPPORTUNITY IS CHINA WHICH ALONE WILL ACCOUNT FOR MORE THAN ONE HUNDRED SEVENTY GIGAWATTS OF NEW ORDERS AS THEIR ECONOMY GROWS BY LEAPS AND BOUNDS OVER THE COURSE OF THE NEXT TEN YEARS MR. WILLIAMSON SAID WHILE CHINA CAN EVENTUALLY SUPPLY SOME OF ITS OWN EQUIPMENT IT WILL HAVE TO DEPEND ON IMPORTED TECHNOLOGY IN THE SHORT TERM G. E. EXPECTS CHINA TO SEEK FOREIGN SUPPLIERS FOR AS MUCH AS THREE TO FIVE GIGAWATTS OF NEW CAPACITY EACH YEAR BEIJING IS GIVING THE PROVINCES MORE AUTHORITY TO PLAN FOR AND BUILD NEW POWER CAPACITY BUT FINANCING IS STILL A MAJOR HITCH MR. WILLIAMSON SAID FOR EXAMPLE GUANGDONG WILL NEED BILLIONS OF DOLLARS TO COVER THE NEXT FIVE POWER PROJECTS AND MUST OBTAIN EXPORT CREDITS TO COVER THIS AMOUNT HE SAID MUCH OF THIS CREDIT HAS TO COME FROM NON CHINESE INSTITUTIONS HE ADDED INDIA CAN ORDER AS MUCH AS SIXTY GIGAWATTS OF POWER OVER THE SAME PERIOD TO COPE WITH A STILL GROWING POPULATION AND SERIOUS POWER SHORTFALLS THE G. E. UNIT SAID FINANCING IS ALSO A PROBLEM BUT G. E. IS ENCOURAGED BY NEW DELHI'S LATEST MOVES TO INVITE FOREIGN INVESTORS AND INDEPENDENT POWER PRODUCERS INTO THE COUNTRY G. E. REGARDS JAPAN SOUTH KOREA AND TAIWAN AS MATURING POWER EQUIPMENT MARKETS BUT IT STILL EXPECTS AS MUCH AS SEVENTY FIVE GIGAWATTS OF NEW JAPANESE ORDERS IN THE NEXT TEN YEARS SOME ORDERS WILL BE FOR NUCLEAR POWER AND COMBINED CYCLE PLANTS WHICH GENERATE ADDITIONAL POWER BY USING EXHAUST GASES TO DRIVE A GENERATOR G. E. EXPECTS INDONESIA'S POWER DEMAND TO INCREASE BY FIFTEEN PERCENT A YEAR OR MORE THAN TWICE ITS ECONOMIC GROWTH RATE PRIVATE POWER AGAIN MAY BE THE WINNING FORMULA MR. WILLIAMSON SAID JAKARTA IS PUSHING THE PRIVATE SECTOR TO SUPPLY FORTY PERCENT TO FIFTY PERCENT OF THE COUNTRY'S ADDITIONAL NEEDS HE ADDED G. E. DOESN'T PROVIDE ESTIMATES OF THE VALUE OF THESE ASIAN ORDERS BUT ANOTHER FIRM GAS VENTURES ADVISORS INCORPORATED EXPECTS CHINA ALONE TO SPEND TWO HUNDRED TWENTY SEVEN BILLION DOLLARS FOR POWER PROJECTS OVER THE NINETEEN NINETY TWO TO TWO THOUSAND PERIOD GAS VENTURES ALSO PROJECTS ONE HUNDRED TWENTY SIX BILLION DOLLARS IN EXPENDITURES FOR INDIA OVER THE SAME PERIOD THE FIRM IN BOSTON PRESENTED THESE ESTIMATES AT THE WASHINGTON CONFERENCE G. E.'S INDUSTRIAL AND POWER SYSTEMS DIVISION IS ITSELF A MAJOR SUPPLIER OF THIS EQUIPMENT IT COMPETES IN THE ASIAN MARKET WITH A NUMBER OF JAPANESE AND EUROPEAN SUPPLIERS COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE BERNARD CANAVAN FIFTY EIGHT YEARS OLD WAS ELECTED A DIRECTOR OF THIS BIOPHARMACEUTICAL COMPANY INCREASING BOARD MEMBERSHIP TO EIGHT DOCTOR CANAVAN RECENTLY RETIRED AS PRESIDENT OF AMERICAN HOME PRODUCTS CORPORATION SEGA ENTERPRISES LIMITED AND M. C. A. INCORPORATED ARE PLANNING TO BUILD A NEW ENTERTAINMENT ATTRACTION AS PART OF M. C. A.'S UNIVERSAL STUDIOS HOLLYWOOD COMPLEX IN SOUTHERN CALIFORNIA ACCORDING TO INDIVIDUALS CLOSE TO THE SITUATION THE TWO COMPANIES HAVE COMMISSIONED ARCHITECTS AND DESIGNERS TO BUILD AN ATTRACTION THAT WILL COMBINE SEGA'S EXPERTISE IN HIGH TECH ARCADE GAMES WITH M. C. A.'S MOVIE AND TELEVISION THEMES PEOPLE FAMILIAR WITH THE PLAN SAY CONSTRUCTION COULD BEGIN AS EARLY AS THIS YEAR IN UNIVERSAL CITY CALIFORNIA WHERE M. C. A. OPERATES A THEME PARK AN EIGHTEEN SCREEN MOVIE THEATER A MUSIC AMPHITHEATER AND A RETAIL COMPLEX CALLED QUOTE CITYWALK QUOTE THE COST OF THE NEW COMPLEX WAS SAID TO BE PERHAPS TWENTY MILLION DOLLARS THE PARTNERSHIP IS SEGA'S MOST SERIOUS ATTEMPT YET TO MOVE UP FROM ITS LUCRATIVE VIDEO ARCADE BUSINESS INTO THE COMPETITIVE U. S. MARKET FOR LARGER ENTERTAINMENT ATTRACTIONS WHILE THE TOKYO BASED VIDEOGAME MAKER HAS TALKED ABOUT COMPETING WITH THE WALT DISNEY COMPANY DISNEY HAS LOOKED AT SUCH MIDSIZED COMPLEXES AND HAS SO FAR DECIDED THEY DON'T MAKE MUCH ECONOMIC SENSE AT THE SAME TIME THE SEGA M. C. A. ALLIANCE HIGHLIGHTS THE POTENTIAL CONFLICTS EMERGING AS HARDWARE SOFTWARE AND ENTERTAINMENT COMPANIES COME TOGETHER TO CREATE NEW FORMS OF INTERACTIVE MULTIMEDIA ENTERTAINMENT M. C. A.'S PARENT OSAKA BASED CONSUMER ELECTRONICS GIANT MATSUSHITA ELECTRIC INDUSTRIAL COMPANY COMPETES AGAINST SEGA IN THE HOME VIDEO GAME MARKET THROUGH ITS TIE UP WITH THREE D. O. COMPANY SEGA M. C. A. AND MATSUSHITA ALL DECLINED COMMENT ON THE NEW PROJECT SEGA WHICH DERIVES NEARLY HALF ITS REVENUE FROM ARCADE OPERATIONS AND SALES OF ARCADE GAMES OPERATES A STRING OF UPSCALE VIDEO ARCADES IN JAPAN AND HAS RECENTLY STARTED EXPORTING THE CONCEPT TO THE U. S. TO SEGA HOWEVER THAT BUSINESS MERELY LAID THE GROUNDWORK FOR SO CALLED HIGH TECH THEME PARKS THAT BLEND AMUSEMENT PARK RIDES WITH VIRTUAL REALITY VIDEO GAME TECHNOLOGY SEGA PLANS TO OPEN A PROTOTYPE HIGH TECH PARK IN OSAKA IN MARCH WITH A FULL BLOWN VERSION PARK TO FOLLOW IN YOKOHAMA IN JULY USING THE UNIVERSAL CITY CALIFORNIA SITE AS A SHOWCASE SEGA AND M. C. A. INTEND TO BUILD A PROTOTYPE OF AN ATTRACTION THAT BLENDS THE COMPANIES' DIFFERENT APPROACHES TO ENTERTAINMENT UNLIKE SEGA'S PLANNED HIGH TECH PARKS IN JAPAN THE NEW COMPLEX LIKELY WILL INCLUDE NOT JUST EIGHT PLAYER FLIGHT SIMULATION AND RACE CAR GAMES AND OTHER VIRTUAL REALITY ATTRACTIONS BUT GAMES AND RIDES EMPLOYING M. C. A.'S MOVIE MAKING EXPERTISE AND PERHAPS EVEN THEMES CULLED FROM ITS MOVIES AND TELEVISION SHOWS M. C. A.'S UNIVERSAL PICTURES UNIT PRODUCED JURASSIC PARK E. T. THE EXTRA TERRESTRIAL AND THE BACK TO THE FUTURE SERIES THE COST OF THE THIRTY THOUSAND SQUARE FOOT TO FIFTY THOUSAND SQUARE FOOT COMPLEX WOULD BE WELL BELOW THE BILLIONS SPENT BY M. C. A. AND DISNEY FOR GIANT THEME PARKS BUT CONSIDERABLY MORE THAN THE ESTIMATED FIVE POINT FIVE MILLION DOLLARS SPENT TO BUILD VIRTUALAND SEGA'S SOUPED UP ARCADE FOR THE NEW LUXOR RESORT IN LAS VEGAS IT'S ALSO MUCH LESS THAN THE SEVEN BILLION YEN ROUGHLY SIXTY FIVE MILLION DOLLARS SEGA ESTIMATES ITS YOKOHAMA HIGH TECH PARK WILL COST DISCUSSIONS TOOK PLACE BETWEEN SEGA PRESIDENT HAYAO NAKAYAMA AND M. C. A. EXECUTIVE VICE PRESIDENT SKIP PAUL THE HEAD OF M. C. A.'S INTERACTIVE MULTIMEDIA EFFORT AT LAST MONTH'S CONSUMER ELECTRONICS SHOW IN LAS VEGAS SAY INDIVIDUALS THE SEGA MATSUSHITA COMPETITION ISN'T THOUGHT TO BE A PROBLEM THESE PEOPLE SAY THE NEW COMPLEX IS AN M. C. A. PROJECT AND LOCATION BASED ENTERTAINMENT ISN'T RELATED TO THE LIVING ROOM WARS BETWEEN SEGA MATSUSHITA AND NINTENDO COMPANY MORE MARKET RESEARCHERS ARE GETTING WIRED ON COMPUTER NETWORKS AND FINDING THAT FOCUS GROUPS IN CYBERSPACE ARE FASTER AND CHEAPER THAN THE OLD FASHIONED KIND THE LATEST AND POTENTIALLY BIGGEST VENTURE INVOLVES BKG AMERICA A NEW YORK RESEARCH FIRM SPECIALIZING IN CHILDREN TEENS AND GENERATION X. IT HAS AN EXCLUSIVE AGREEMENT WITH AMERICA ONLINE TO CONDUCT ELECTRONIC RESEARCH WITH FIVE TO TWENTY NINE YEAR OLDS BKG WILL COLLECT DATA VIA BROAD SURVEYS AND IN DEPTH ELECTRONIC CHAT SESSIONS AND SELL THE FINDINGS TO CORPORATE AND AD AGENCY CLIENTS THE SERVICE AMERICAN DIALOGUE BEGINS THIS MONTH WITH BKG ELECTRONICALLY PROBING SIX HUNDRED HOUSEHOLDS WITH FIVE TO TWELVE YEAR OLDS MARIAN SALZMAN BKG AMERICA PRESIDENT SAYS MARKETERS WANT REALTIME FEEDBACK PARTICULARLY FROM THE TWENTY TO TWENTY NINE YEAR OLDS WHO MAKE UP GENERATION X. OTHER COMPANIES ARE DOING CONSUMER RESEARCH ON LINE VIACOM'S NICKELODEON NETWORK ESTABLISHED ITS OWN PRIVATE FORUM OF EIGHT TO TWELVE YEAR OLDS LAST YEAR ON THE COMPUSERVE NETWORK A UNIT OF H. AND R. BLOCK PRODIGY SERVICES A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES AND SEARS ROEBUCK MARKETS A FOCUS GROUP PACKAGE TO COMPANIES AND COUNTS THE THREE MAJOR TELEVISION NETWORKS AMONG ITS USERS BKG PLANS TO WIRE UP FIVE THOUSAND TO TEN THOUSAND CHILDREN AND YOUNG ADULTS BY OFFERING THEM FREE AMERICA ONLINE SOFTWARE ELECTRONIC PARTICIPANTS ALSO GET THIRTY FIVE DOLLARS TO FIFTY DOLLARS PER SESSION THE AMOUNT PAID TO MEMBERS OF TRADITIONAL FOCUS GROUPS ELECTRONIC RESEARCH IS CHEAPER THAN GATHERING DATA FACE TO FACE MS. SALZMAN SAYS A TYPICAL IN PERSON FOCUS GROUP COSTS FOUR THOUSAND DOLLARS SHE ESTIMATES ELECTRONICALLY IT COULD BE DONE FOR ONE THOUSAND FIVE HUNDRED DOLLARS AND ALTHOUGH ELECTRONIC RESEARCH DOESN'T YET ALLOW VISUAL OBSERVATION MS. SALZMAN SAYS THAT ISN'T A PROBLEM QUOTE THE DEGREE OF INTIMACY IN THIS MEDIUM MAKES UP FOR WHAT YOU'RE LOSING QUOTE SHE SAYS CONSUMER EXPERTS ARE INTRIGUED BY THE IDEA BUT CAUTION THAT IT WON'T REPLACE TRADITIONAL FOCUS GROUPS YET BARBARA FEIGIN EXECUTIVE VICE PRESIDENT AT GREY ADVERTISING NOTES ONLINE USERS ARE A TINY SLIVER OF THE POPULATION USERS MOSTLY UPSCALE HIGHLY EDUCATED MEN ARE A FINE SUBJECT FOR RESEARCH ABOUT HIGH TECH PRODUCTS SHE SAYS BUT NOT MASSMARKET ITEMS THEY AREN'T THE TRUE TARGET SHE SAYS THEY'RE NOT THE ONES WHO ARE GOING TO BUY IT THE PHILADELPHIA PROPERTY MANAGEMENT FIRM OF RUBIN STROUSE REALTY IS TRYING TO ADAPT CONSUMER MARKETING TACTICS TO THE COMMERCIAL REAL ESTATE BUSINESS THE OFFICE AND INDUSTRIAL DIVISION OF RUBIN ORGANIZATION IS HOPING TO ATTRACT NEW TENANTS AND KEEP EXISTING ONES WITH THE RUBINEDGE A PACKAGE OF PERKS AND DISCOUNTS TO MAKE COMMERCIAL TENANTS FEEL GOOD ABOUT THEIR LANDLORD RUBIN STROUSE'S OFFICE TENANTS RECEIVE A PERSONALIZED IDENTIFICATION CARD ENTITLING THEM TO SMALL AMENITIES IN THE LOBBIES OF RUBIN PROPERTIES SUCH AS FREE UMBRELLA LOANS ON RAINY DAYS OR DOUGHNUTS AND COFFEE ON COLD MORNINGS LOCAL RETAILERS AND RESTAURANTS OFFER CARDHOLDERS DISCOUNTS THE COMPANY ALSO PRODUCES NEWSLETTERS FOR THE TENANTS IN ITS COMMERCIAL BUILDINGS RUBIN ALSO HAS BEGUN A BULK BUYING PROGRAM COVERING ABOUT A DOZEN PROPERTIES GIVING THOSE OWNERS CHEAPER PRICES ON ALL THEY BUY FOR THEIR BUILDINGS FROM ELEVATOR MAINTENANCE TO PAPER PRODUCTS BAD NEWS FOR THRIFTY SHOPPERS MARKETERS ISSUED ABOUT THE SAME NUMBER OF CENTS OFF COUPONS LAST YEAR AS THEY DID IN NINETEEN NINETY TWO ENDING TWENTY YEARS OF STEADY INCREASES MANUFACTURERS DISTRIBUTED THREE HUNDRED TWENTY THREE BILLION COUPONS LAST YEAR ROUGHLY ON PAR WITH NINETEEN NINETY TWO ACCORDING TO CAROLINA MANUFACTURERS SERVICE A WINSTON SALEM N. C. FIRM THAT TRACKS COUPON USAGE THE THREE HUNDRED TWENTY TWO MILLION ISSUED IN NINETEEN NINETY TWO MARKED A TEN PERCENT INCREASE OVER NINETEEN NINETY ONE WHEN COMPANIES WERE EAGER TO WOO RECESSION BATTERED SHOPPERS COUPON DISTRIBUTION BEGAN ITS DECLINE AT THE END OF NINETEEN NINETY TWO C. M. X. SAYS BECAUSE MANY COMPANIES EXHAUSTED PROMOTION BUDGETS EARLY IN THE YEAR IN NINETEEN NINETY THREE COUPON USAGE DIDN'T PICK UP PARTLY BECAUSE EVERYDAY LOW PRICING POLICIES BECOME POPULAR ALL THE TRADITIONAL WAYS OF PROMOTING PRODUCTS HAVE BEEN CALLED INTO QUESTION SAYS JOAN JOHNSON C. M. X. MANAGER OF MARKETING COMMUNICATIONS SHOPPERS TOO ARE APPARENTLY LESS INTERESTED IN COUPONS THEY REDEEMED SEVEN POINT SEVEN BILLION COUPONS LAST YEAR A MERE TWO POINT THREE PERCENT OF ALL MANUFACTURERS' COUPONS DISTRIBUTED DOWN THREE PERCENT FROM THE SEVEN POINT NINE BILLION REDEEMED IN NINETEEN NINETY TWO THE REDEMPTION RATE FOR FREE STANDING INSERTS THOSE GLOSSY COUPONS IN SUNDAY NEWSPAPERS WAS EVEN LOWER AT TWO POINT ONE PERCENT IN NINETEEN NINETY THREE COMPARED WITH TWO POINT THREE PERCENT IN NINETEEN NINETY TWO C. M. X. SAYS MANUFACTURERS HAVE DIMINISHED COUPONS' EFFECTIVENESS BY FEATURING MORE THAN ONE PER PAGE IN INSERTS AND BY GIVING CONSUMERS LESS TIME TO USE THEM IN NINETEEN NINETY THREE COUPONS HAD AN AVERAGE LIFE OF THREE POINT EIGHT MONTHS IN NINETEEN EIGHTY EIGHT THEY LASTED TWICE AS LONG VALENTINE'S DAY IS STILL MORE A HOLIDAY FOR WOMEN ACCORDING TO GODIVA CHOCOLATIER A UNIT OF CAMPBELL SOUP EIGHTY PERCENT OF AMERICAN MEN SAY THEY INTEND TO GIVE THEIR VALENTINE A GIFT COMPARED WITH SIXTY FIVE PERCENT OF WOMEN BOTH MEN AND WOMEN CONSIDER FLOWERS THE MOST ROMANTIC GIFT FOLLOWED BY JEWELRY LINGERIE CHOCOLATES AND PERFUME IN THE LAST SIX MONTHS SIXTY TWO PERCENT OF SHOPPERS LEFT A STORE WITHOUT BUYING ANYTHING BECAUSE THEY COULDN'T FIND A SALES CLERK ACCORDING TO A YANKELOVICH PARTNERS SURVEY FOR MASTERCARD INTERNATIONAL AND THE NATIONAL RETAIL FEDERATION THE CLINTON HEALTH PLAN RECEIVED ANOTHER BROADSIDE FROM BUSINESS AS THE U. S. CHAMBER OF COMMERCE WARNED CONGRESS AGAINST EVEN USING THE BILL AS A QUOTE STARTING POINT QUOTE FOR FUTURE LEGISLATION THE STATEMENT CAME ON THE HEELS OF A BUSINESS ROUNDTABLE VOTE ALSO REBUFFING THE ADMINISTRATION PLAN A SENIOR CHAMBER OFFICIAL DESCRIBED THE TWIN ACTIONS AS A WAKE UP CALL TO THE PRESIDENT OF ERODING BUSINESS SUPPORT FOR HIS PLAN DELTA PLANS TO CUT TRANS ATLANTIC CAPACITY TWELVE PERCENT THIS SUMMER ELIMINATING SCORES OF UNPROFITABLE ROUTES IT INHERITED AFTER BUYING PAN AM'S EUROPEAN OPERATIONS OVER TWO YEARS AGO RETAILERS REPORTED DISAPPOINTING SALES GROWTH FOR JANUARY HURT BY THE SEVERE WINTER WEATHER AND THE CALIFORNIA EARTHQUAKE BUT EVEN ALLOWING FOR THOSE FACTORS SALES DIDN'T APPEAR TO REFLECT THE IMPROVED ECONOMY AND CONSUMER CONFIDENCE ANALYSTS SAID U. S. SALES OF CARS AND LIGHT TRUCKS INCREASED THIRTEEN POINT SEVEN PERCENT IN JANUARY FROM A YEAR EARLIER TO ONE MILLION TWENTY TWO THOUSAND FIVE HUNDRED FORTY THREE VEHICLES SEGA AND M. C. A. ARE PLANNING TO BUILD AN ENTERTAINMENT ATTRACTION AS PART OF M. C. A.'S UNIVERSAL STUDIOS HOLLYWOOD COMPLEX IN SOUTHERN CALIFORNIA PEOPLE CLOSE TO THE SITUATION SAY TED TURNER SAID HE IS WILLING TO RELINQUISH FIFTY ONE PERCENT VOTING CONTROL OF TURNER BROADCASTING SYSTEM TO FULFILL HIS GOAL OF ESTABLISHING A NETWORK SHORT TERM U. S. INTEREST RATES SOARED AS SPECULATION ABOUT WHEN THE FED WILL TIGHTEN MONETARY POLICY SENT A SHUDDER THROUGH THE BOND MARKETS THE BUNDESBANK CHILLED HOPES FOR LOWER GERMAN INTEREST RATES ANY TIME SOON BY REPORTING AN UNEXPECTEDLY BIG JUMP IN DECEMBER MONEY SUPPLY A HOUSE PANEL VOTED TO ALLOW BANKS TO BUILD NATIONWIDE BRANCH SYSTEMS AND IN THE SENATE AN AMENDMENT THAT HAS BLOCKED PASSAGE OF NATIONWIDE BANKING IN THE PAST WAS WITHDRAWN OWENS ILLINOIS SAID IT IS SLASHING ITS U. S. WORK FORCE BY TEN PERCENT OR TWO THOUSAND EMPLOYEES AND TAKING A THREE HUNDRED FIFTY FIVE MILLION DOLLAR CHARGE FOR THE NINETEEN NINETY THREE FOURTH QUARTER THE THREE MAJOR BROADCAST NETWORKS ARE SETTING UP A TWENTY MILLION DOLLAR TEST T. V. RATINGS SERVICE CITING FRUSTRATION WITH THE QUALITY OF NIELSEN'S SYSTEM MANUFACTURING ORDERS CLIMBED ONE POINT TWO PERCENT IN DECEMBER TO TWO HUNDRED SIXTY SIX POINT OH TWO BILLION DOLLARS THE FIFTH CONSECUTIVE MONTHLY INCREASE NISSAN PLANS TO BUY BACK ALL OF THE ESTIMATED THIRTY THREE THOUSAND NISSAN VANS IT SOLD FROM NINETEEN EIGHTY SEVEN TO NINETEEN NINETY BECAUSE OF POTENTIAL ENGINE FIRES THE MOVE COULD COST UP TO ONE HUNDRED EIGHTY MILLION DOLLARS INDUSTRY OFFICIALS SAID THE F. C. C. STREAMLINED ITS METHODS OF REGULATING MOBILE COMMUNICATIONS AND APPROVED A PLAN TO LICENSE NEW WIRELESS DATA AND MESSAGE SERVICES RUPERT MURDOCH'S BRITISH SKY BROADCASTING VENTURE POSTED A SIXFOLD JUMP IN PROFIT FOR THE FISCAL FIRST HALF BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED NINETY FIVE POINT OH ONE OFF TWENTY POINT SEVEN EIGHT COMMODITIES OIL FIFTEEN DOLLARS AND EIGHTY NINE CENTS A BARREL OFF FIFTEEN CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY FOUR POINT EIGHT NINE UP ONE POINT THREE SIX SPOT INDEX ONE HUNDRED THIRTY ONE POINT THREE FIVE UP ZERO POINT SIX THREE DOLLAR ONE HUNDRED EIGHT POINT ONE FOUR YEN UP ZERO POINT TWO SIX ONE POINT SEVEN FOUR ONE FIVE MARKS UP ZERO POINT ZERO ZERO SIX NINE UNUSUALLY SEVERE WINTER WEATHER AND THE CALIFORNIA EARTHQUAKE CAUSED RETAILERS TO REPORT DISAPPOINTING SALES RESULTS FOR JANUARY BUT EVEN ALLOWING FOR THE ELEMENTS SALES AT BIG RETAIL CHAINS DIDN'T APPEAR TO REFLECT THE IMPROVED ECONOMY AND MORE BUOYANT CONSUMER CONFIDENCE INDUSTRY WATCHERS SAID SALES ROSE UP TO THREE POINT FIVE PERCENT JANUARY SALES AT THE NATION'S BIGGEST RETAILERS GREW THREE POINT FIVE PERCENT ACCORDING TO AN INDEX COMPILED BY SALOMON BROTHERS INCORPORATED A SIMILAR INDEX COMPILED BY PAINEWEBBER INCORPORATED SAW RETAIL SALES CLIMB THREE POINT THREE PERCENT IN BOTH INDEXES THE JANUARY GAIN WAS LOWER THAN SALES INCREASES IN DECEMBER NINETEEN NINETY THREE AND IN THE YEAR EARLIER MONTH IN KEEPING WITH A RECENT DEVELOPMENT RETAILERS THAT SELL HOME FURNISHINGS DID BETTER THAN ALL BUT A FEW OF THOSE THAT SELL CLOTHING DISCOUNT AND DEPARTMENT STORES FARED BETTER THAN SPECIALTY RETAILERS QUOTE IT'S VERY DIFFICULT TO TRACE THE TRANSFER OF RENEWED CONSUMER CONFIDENCE INTO ACCELERATED SPENDING QUOTE SAID JANET MANGANO A RETAIL ANALYST AT BURNHAM SECURITIES INCORPORATED CONSUMERS WOULD RATHER SPEND THEIR HARD EARNED DOLLARS OR BORROW MONEY FOR MERCHANDISE THAT THEY FEEL HAS A LONG LASTING VALUE WHICH IN GENERAL IS MERCHANDISE FOR THE HOME OR CARS THE DISAPPOINTING JANUARY RESULTS AREN'T LIKELY TO HAVE A SUBSTANTIAL EFFECT ON RETAILERS' FISCAL FOURTH QUARTER EARNINGS THOUGH BECAUSE JANUARY NORMALLY CONTRIBUTES LESS THAN TWENTY PERCENT OF FOURTH QUARTER SALES AND AN EVEN LOWER PORTION OF PROFITS ANALYSTS SAID THEY ADDED THAT THE OUTLOOK FOR THE NEXT THREE MONTHS IS GOOD BECAUSE RETAILERS FACE EASIER YEAR TO YEAR COMPARISONS THAN THEY DID IN DECEMBER AND JANUARY THE FISCAL FIRST QUARTER WHICH BEGAN JANUARY THIRTIETH WILL GIVE RETAILERS PROBABLY THE EASIEST COMPARISONS BACK TO BACK IN A COUPLE OF YEARS SAID JEFFREY FEINER A RETAIL ANALYST AT SALOMON BROTHERS MR. FEINER SAID HE THEREFORE REMAINS OPTIMISTIC ABOUT THE BIG RETAILERS' PROSPECTS HE NOTED THAT AT LEAST A FEW COMPANIES POSTED STRONG APPAREL SALES GAINS J. C. PENNEY COMPANY SAID IT GOT ITS BIGGEST BOOST FROM ITS HOME FURNISHINGS DEPARTMENT BUT ADDED THAT ITS WOMEN'S APPAREL SOLD WELL ALSO PENNEY REPORTED A FOUR POINT SIX PERCENT SALES GAIN IN STORES OPEN AT LEAST A YEAR WAL MART STORES INCORPORATED THE NATION'S LARGEST RETAILER POSTED A FIVE PERCENT SAME STORE SALES GAIN FOR JANUARY SEARS ROEBUCK AND COMPANY SAID IMPROVED SALES OF WOMENS' APPAREL HELPED IT ACHIEVE A NINE POINT ONE PERCENT SAME STORE SALES GAIN THE SEVERE WEATHER WORKED TO SEARS'S BENEFIT IN SOME AREAS AS IT REPORTED DOUBLE DIGIT SALES GAINS OF TIRES AND CAR BATTERIES OTHER RETAILERS WERE HURT BADLY BY THE ELEMENTS DAYTON HUDSON CORPORATION SAID THE CALIFORNIA EARTHQUAKE WILL CAUSE IT TO TAKE A PRETAX FOURTH QUARTER CHARGE OF TWENTY MILLION DOLLARS TO TWENTY FIVE MILLION DOLLARS FIVE OF ITS ONE HUNDRED SEVEN STORES IN SOUTHERN CALIFORNIA REMAIN CLOSED OVERALL DAYTON HUDSON POSTED A TWO POINT NINE PERCENT SALES GAIN IN STORES OPEN AT LEAST A YEAR MERCANTILE STORES COMPANY SAID STORES IN SOME OF ITS KEY AREAS SUCH AS TENNESSEE AND ALABAMA WERE HIT WITH THE SEVEREST WEATHER EXPERIENCED IN SEVENTEEN YEARS THE COMPANY SHOWED A SEVEN POINT SIX PERCENT SAME STORE SALES DECLINE IN JANUARY MAY DEPARTMENT STORES COMPANY DIDN'T INCLUDE IN ITS MONTHLY REPORT RESULTS FROM THE SEVEN STORES THAT REMAIN CLOSED AS A RESULT OF THE EARTHQUAKE EXCLUDING THOSE STORES MAY HAD A FIVE PERCENT SAME STORE SALES GAIN LOOKING FORWARD RETAIL ANALYSTS SAID THEY ALREADY HAVE DETECTED EVIDENCE OF INCREASED CONSUMER SPENDING QUOTE THERE'S A SHOPPING SPREE GOING ON IN THE FIRST WEEK OF FEBRUARY ON THE EAST COAST QUOTE SAID MARGO MCGLADE A PAINEWEBBER RETAIL ANALYST ALWAYS STICK AROUND FOR ONE MORE DRINK NEVER GO SOUTH OF GASTON STREET OBSERVE THE HIGH HOLIDAYS SAINT PATRICK'S DAY AND THE DAY OF THE GEORGIA FLORIDA FOOTBALL GAME NOT ALL SAVANNAHIANS PLAY BY MR. ODOM'S RULES OF COURSE BUT HIS DEDICATION TO DRINKING PARTYING AND A SNOBBERY THAT IGNORES CERTAIN SECTIONS OF THE CITY IS SHARED BY MOST OF THE DOZENS OF EXOTICS WHO FEATURE IN JOHN BERENDT'S ENTERTAINING ACCOUNT OF GOOD TIMES SERIOUS CRIME AND RAFFISH BEHAVIOR QUOTE MIDNIGHT IN THE GARDEN OF GOOD AND EVIL QUOTE RANDOM HOUSE THREE HUNDRED EIGHTY EIGHT PAGES TWENTY THREE DOLLARS I DON'T KNOW WHAT THIS BOOK WILL DO FOR SAVANNAH TOURISM OVERALL BUT IT IS CERTAIN TO ATTRACT ANYONE WITH A TASTE FOR OLD HOUSES AND ENDURING VICES ONE SAVANNAHIAN WHO HAD BOTH WAS JIM WILLIAMS A CONTROVERSIAL AND FLAMBOYANT ANTIQUES DEALER HOW DOES IT FEEL TO BE NOUVEAU RICHE WILLIAMS WAS ASKED IT'S THE RICHE THAT COUNTS HE REPLIED OF THE OLD MONEY SOCIAL ELITE WILLIAMS TOLD MR. BERENDT THAT IF THEY SHARE A SINGLE TRAIT IT'S THEIR LOVE OF MONEY AND THEIR UNWILLINGNESS TO SPEND IT SOME MEMBERS OF OLD FAMILIES FOUGHT WITH OR SNUBBED WILLIAMS BUT WILLIAMS WAS FAMOUS FOR HIS CHRISTMAS PARTY IN HIS HOME THE LARGEST PRIVATE RESIDENCE IN THE CITY THE GRANDEUR OF HIS HOUSE THE BEAUTY OF ITS FURNISHINGS HIS CLEVER MANIPULATION OF HIS GUEST LIST AND HIS LAVISH SPENDING TURNED WILLIAMS'S GALA INTO SAVANNAH'S PARTY OF THE YEAR FROM WILLIAMS MR. BERENDT GOT AN INTRODUCTION TO SAVANNAH'S DARKER SIDE YOU MUSTN'T BE TAKEN IN BY THE MOONLIGHT AND MAGNOLIAS THERE'S MORE TO SAVANNAH THAN THAT THINGS CAN GET VERY MURKY WILLIAMS SAID WHILE DESCRIBING A SERIES OF MURDERS AMONG THE RICH THAT HAD BEEN SWEPT UNDER THE RUG SOON MURK DESCENDED ON WILLIAMS HIMSELF IN HIS STUDY HE SHOT AND KILLED A TWENTY ONE YEAR OLD HUSTLER NAMED DANNY HANSFORD WHO HAD BEEN HIS LOVER AND ALSO WORKED IN HIS FURNITURE RESTORATION SHOP HANSFORD'S FAME FOR SEXUAL ABILITY HAD BEEN SPREADING PRENTISS CROWE AN OLD MONEY SAVANNAHIAN REACTED TO THE KILLING WITH CONFIDENCE THAT SAVANNAH JUSTICE WOULD ONCE AGAIN SHIELD A RICH MAN CAUGHT IN AN EXPOSED POSITION BUT WITH EQUAL CERTAINTY THAT SOME MEN AND WOMEN WOULD BE RESENTFUL HE EXPLAINED HANSFORD WAS KNOWN AS A GOOD TIME BUT A GOOD TIME NOT YET HAD BY ALL IN KEEPING WITH THE ELITE'S ATTITUDE TOWARD THE LESS FORTUNATE DEAD WILLIAMS WAS COOL WHEN ASKED IN COURT ABOUT THE APPROPRIATENESS OF HIS RELATIONSHIP WITH HANSFORD GIVEN THEIR AGES QUOTE I WAS FIFTY TWO YEARS OLD BUT HE HAD FIFTY TWO YEARS' WORTH OF MILEAGE ON HIM QUOTE HE REPLIED NEW YORK BASED MR. BERENDT FELL FOR SAVANNAH'S SINFUL WAYS AND OLD FASHIONED CHARMS IN THE EARLY NINETEEN EIGHTIES AND DECIDED TO TAKE UP BI CITY LIVING HE WASN'T THERE LONG BEFORE HE SAW A BOOK BEFORE HIS EYES MIDNIGHT IS AT ITS BEST WHEN IT IS SKETCHING THE NATURE OF THE CITY AND INTRODUCING CHARACTERS SUCH AS THE BLACK TRANSVESTITE CHABLIS COLONEL JIM ATWOOD OWNER OF HITLER'S SILVERWARE AND LUTHER DRIGGERS A MAN WHO MAY OR MAY NOT HAVE A VIAL OF DEADLY POISON BUT IS MORE IMMEDIATELY DETERMINED TO MAKE GOLDFISH GLOW IN THE DARK THE WILLIAMS MURDER TRIALS THERE WERE THREE OF THEM BECAME THE CORE STORY OF MIDNIGHT IN THE GARDEN OF GOOD AND EVIL MR. BERENDT IS A SKILLFUL NARRATOR BUT INTERESTING AS THE WILLIAMS CASE IS IT DOESN'T REMAIN FASCINATING OVER ALL THE PAGES MR. BERENDT GIVES IT ALL THE MAIN CHARACTERS ARE MEMORABLE THOUGH AT LEAST UNTIL THE READER REACHES THE BOOK'S LAST PAGE AND FINDS AN AUTHOR'S NOTE REVEALING THAT A NUMBER OF PSEUDONYMS HAVE BEEN USED AND WHAT'S MORE MR. BERENDT HAS ALTERED DESCRIPTIONS OF SOME PEOPLE TO PROTECT THEIR PRIVACY THOUGH THIS IS A WORK OF NONFICTION I HAVE TAKEN CERTAIN STORYTELLING LIBERTIES PARTICULARLY HAVING TO DO WITH THE TIMING OF EVENTS MR. BERENDT ADDS ALTERED HOW WAS DANNY HANSFORD REALLY DANIELLE HANSFORD AND WHAT STORYTELLING LIBERTIES ALLOW A NONFICTION WRITER TO ALTER CHRONOLOGY FACTION IS AN UNLIKABLE HYBRID A FULLY FICTIONAL EVOCATION OF ANOTHER GREAT SOUTHERN PORT CITY CAN BE FOUND IN JOHN GREGORY BROWN'S DECORATIONS IN A RUINED CEMETERY HOUGHTON MIFFLIN TWO HUNDRED FORTY FOUR PAGES NINETEEN DOLLARS AND NINETY FIVE CENTS SET IN NEW ORLEANS AND SPANNING THE YEARS FROM THE SIXTIES UNTIL THE PRESENT MR. BROWN'S FIRST NOVEL IS COMPELLINGLY TOLD IN THE VOICES OF TWO WHITE WOMEN AND A BLACK MAN IN THE TRADITION OF FAULKNER AND OTHER SOUTHERN WRITERS THE STORY GRADUALLY UNTANGLES ACTIONS TAKEN YEARS AGO THE EFFECTS OF WHICH HAVE PASSED AFFLICTION DOWN OVER THE YEARS MR. BROWN'S COMPLICATED PLOT DEVELOPMENT ISN'T ALWAYS MESMERIZING BUT HIS WRITING FREQUENTLY IS HIS WORDS CONVEY YEARS OF WONDER AND THE WORLD OF HURT THAT COMES WITH LOVE UNANSWERED U. S. X. CORPORATION PITTSBURGH SAID IT APPROVED A TWELVE PERCENT LOWER CAPITAL INVESTMENT AND EXPLORATION BUDGET FOR ITS MARATHON GROUP UNIT FOR NINETEEN NINETY FOUR IN HOPES THAT LOWER SPENDING WILL HELP REDUCE DEBT AND IMPROVE THE COMPANY'S FINANCIAL PROFILE U. S. X. A STEEL PETROLEUM AND NATURALGAS CONCERN APPROVED A BUDGET OF EIGHT HUNDRED NINETY FIVE MILLION DOLLARS DOWN FROM THE ONE POINT OH ONE BILLION DOLLARS SPENT IN NINETEEN NINETY THREE THE COMPANY SAID IT NOTED THAT THE DECREASE PRIMARILY RESULTS FROM THE SUBSTANTIAL COMPLETION OF THREE MULTIYEAR PROJECTS MARATHON'S CAPITAL BUDGET OF SEVEN HUNDRED FIFTY TWO MILLION DOLLARS INCLUDES FOUR HUNDRED NINETY SIX MILLION DOLLARS FOR PRODUCTION ACTIVITIES TWO HUNDRED FORTY SIX MILLION DOLLARS FOR REFINING MARKETING AND TRANSPORTATION AND TEN MILLION DOLLARS FOR OTHER EXPENDITURES ITS WORLD WIDE EXPLORATION BUDGET OF ONE HUNDRED FORTY THREE MILLION DOLLARS INCLUDES EIGHTY FOUR MILLION DOLLARS FOR INTERNATIONAL ACTIVITIES BOND PRICES SANK ON SPECULATION THAT THE FEDERAL RESERVE HAS DECIDED TO BOOST SHORT TERM INTEREST RATES STOCK PRICES FOLLOWED BONDS LOWER AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE FELL SEVEN POINT EIGHT EIGHT POINTS TO THREE THOUSAND NINE HUNDRED SIXTY SEVEN POINT SIX SIX STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX LOST ONE POINT TWO NINE TO FOUR HUNDRED EIGHTY POINT SEVEN ONE AND THE NASDAQ COMPOSITE INDEX SLIPPED ONE POINT SEVEN EIGHT TO SEVEN HUNDRED NINETY SEVEN POINT SEVEN NINE TRADERS SPECULATED ABOUT A RISE IN RATES AFTER THE FED FAILED TO INTERVENE IN THE MARKET WHEN THE FEDERAL FUNDS RATE WAS TRADING ABOVE THE TARGETED THREE PERCENT LEVEL QUOTE I WOULD TAKE THAT AS A SIGN THE FED HAS BEGUN TO TIGHTEN QUOTE SAID DONALD MAUDE CHIEF U. S. FIXED INCOME STRATEGIST AT SCOTIA MCLEOD U. S. A. IT'S VERY VERY SUBTLE AT BEST AN IMPLICIT INDICATION THEY MAY BE MOVING MR. MAUDE SAID AN IMMINENT MOVE WOULD SURPRISE HIM BUT HE BELIEVES RECENT STRENGTH IN COMMODITIES PRICES AND SOME INFLATIONARY PRESSURES IN THE LATEST PURCHASING MANAGERS' REPORTS MAY HAVE FORCED THE FED'S HAND ALAN SINAI CHIEF ECONOMIST AT LEHMAN BROTHERS SAID HE EXPECTS THE FED TO SHIFT ITS STANCE FROM NEUTRAL TO A BIAS TOWARD TIGHTENING DURING THE MEETING OF THE FEDERAL OPEN MARKET COMMITTEE WHICH ENDS TODAY BUT HE THINKS THERE'S ONLY A TWENTY FIVE PERCENT CHANCE OF A BOOST IN SHORT RATES TODAY WITH THE ODDS RISING TO SEVENTY FIVE PERCENT BY MID MARCH THE INDUSTRIAL AVERAGE PLUNGED MORE THAN TWENTY FIVE POINTS DURING THE SESSION BUT BOUNCED BACK IN LATE TRADING ANALYSTS SAID THE REBOUND SUGGESTS THAT INVESTORS ARE APPROPRIATELY FOCUSED ON THE POSITIVE ECONOMIC ENVIRONMENT WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST ZERO POINT SEVEN FIVE TO ONE HUNDRED EIGHTEEN POINT TWO SEVEN STOCK PRICES FELL VOLUME TOTALED THREE HUNDRED EIGHTEEN MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND ONE HUNDRED NINETY ISSUES FELL AND NINE HUNDRED EIGHTEEN ROSE BOND PRICES SLID THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE FELL MORE THAN THREE EIGHTHS POINT OR MORE THAN THREE DOLLARS AND SEVENTY FIVE CENTS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT THREE ONE PERCENT THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN FOUR ONE FIVE MARKS AND ONE HUNDRED EIGHT POINT ONE FOUR YEN COMPARED WITH ONE POINT SEVEN THREE THREE SIX MARKS AND ONE HUNDRED SEVEN POINT EIGHT EIGHT YEN WEDNESDAY FIGGIE INTERNATIONAL INCORPORATED FACING A LIQUIDITY CRUNCH PUT ITS RAWLINGS SPORTING GOODS DIVISION ON THE BLOCK FIGGIE SAID IT RETAINED DILLON READ AND COMPANY TO MANAGE THE SALE OF ALL OR PART OF RAWLINGS WHICH MAKES BASEBALLS BASKETBALLS EQUIPMENT AND UNIFORMS INCLUDING THOSE USED BY PROFESSIONAL SPORTS TEAMS THE COMPANY IS TRYING TO FOCUS ON INDUSTRIAL AND TECHNICAL MANUFACTURING ON JANUARY NINTH FIGGIE SAID IT INCURRED A QUOTE SIGNIFICANT QUOTE LOSS FOR THE FOURTH QUARTER AND YEAR AND WAS SEEKING TO SELL SOME NONCORE ASSETS TO PAY DOWN DEBT IT HASN'T YET REPORTED FOURTH QUARTER RESULTS MEANWHILE ACKNOWLEDGING A CASHFLOW SQUEEZE FIGGIE IS RENEGOTIATING ITS CREDIT LINES WITH ITS BANK SYNDICATE AFTER EXHAUSTING ITS ONE HUNDRED FIFTY MILLION DOLLAR LINE OF CREDIT WHILE FIGGIE DOESN'T RELEASE FINANCIAL RESULTS OF ITS INDIVIDUAL UNITS ANALYSTS PUT RAWLINGS'S ANNUAL REVENUE AT ABOUT ONE HUNDRED TWENTY FIVE MILLION DOLLARS THE SAINT LOUIS BASED DIVISION WITH ONE THOUSAND THREE HUNDRED EMPLOYEES IS THE LARGEST PIECE OF FIGGIE'S CONSUMER PRODUCTS GROUP WHICH HAD AN OPERATING PROFIT OF TWENTY NINE MILLION DOLLARS ON SALES OF TWO HUNDRED TWENTY THREE MILLION DOLLARS IN NINETEEN NINETY TWO IT'S A GOOD CHOICE TO DROP SAID ONE ANALYST WHO ASKED NOT TO BE IDENTIFIED IT HASN'T BEEN THAT GREAT ON THE BOTTOM LINE YET THE NAME AND THE FRANCHISE ARE GOOD ENOUGH THAT SOMEBODY WILL BE WILLING TO PAY A GOOD PRICE FOR IT FIGGIE CHAIRMAN HARRY FIGGIE IS THE AUTHOR OF THE BEST SELLING BOOK BANKRUPTCY NINETEEN NINETY FIVE A GRIM WARNING ABOUT THE U. S.'S MOUNTING DEFICIT FIGGIE'S DEBT HAS BEEN GROWING STEEPLY AS WELL AS OF SEPTEMBER THIRTIETH FIGGIE HAD ABOUT FOUR HUNDRED FIFTY MILLION DOLLARS OF DEBT MR. FIGGIE SAYS HE WANTS TO REDUCE DEBT TO TWO HUNDRED MILLION DOLLARS IN NINETEEN NINETY FOUR IN NINETEEN NINETY TWO FIGGIE HAD NET INCOME OF TWENTY EIGHT POINT THREE MILLION DOLLARS ON SALES OF ONE POINT TWO BILLION DOLLARS FROM ITS MIX OF CONSUMER TECHNICAL INDUSTRIAL AND SERVICE BUSINESSES RANGING FROM FIREFIGHTING EQUIPMENT TO PRIVATE SECURITY OPERATIONS ROBERT KUOK HOCK NIEN HAS A MADE A CAREER OF PLANTING HOTELS IN PLACES OTHERS SHUN NOW THE MALAYSIAN CHINESE TYCOON'S SHANGRI LA CHAIN IS REAPING THE REWARDS SHANGRI LA ASIA LIMITED A HOLDING COMPANY FOR MR. KUOK'S HOTELS IN CHINA AND HONG KONG HAS TRADED AS HIGH AS TWELVE DOLLAR AND THIRTY CENT HONG KONG DOLLARS ONE U. S. DOLLAR AND FIFTY NINE CENTS A SHARE SINCE ITS OFFERING IN JUNE AT FOUR DOLLARS AND NINETY CENTS THE COMPANY FIFTY NINE PERCENT OWNED BY THE FAMILY CONTROLLED KUOK GROUP IS EXPECTED TO REPORT IN MARCH THAT NET INCOME SURGED ABOUT SEVENTY PERCENT IN NINETEEN NINETY THREE ANALYSTS SEE FURTHER SHARP GAINS IN THE NEXT FEW YEARS FOR SHANGRI LA WHICH TRADES ON HONG KONG'S STOCK EXCHANGE AIDES TO MR. KUOK SAY HIS HOTEL OPERATIONS ELSEWHERE IN THE ASIAN PACIFIC REGION ALSO ARE PROFITABLE AND EXPANDING BUT HIS BOLDEST AMBITIONS ARE IN CHINA IN DECEMBER SHANGRI LA ISSUED TWO HUNDRED FIFTY NINE MILLION U. S. DOLLARS IN CONVERTIBLE BONDS TO FINANCE ELEVEN PROJECTS IN CHINA BRINGING THE CHAIN'S HOTEL PORTFOLIO THERE TO AT LEAST EIGHTEEN BY NINETEEN NINETY EIGHT HOWEVER QUOTE THESE HOTELS ARE JUST A DROP IN THE BUCKET QUOTE SAID PHO B. A. QUAN SHANGRI LA'S CHAIRMAN MR. KUOK HAS SAID HE WANTS TO BUILD ONE HUNDRED HOTELS IN HIS LIFETIME IN CHINA MR. KUOK SEVENTY YEARS OLD IS AIMING HIGH SHANGRI LA CREATED A DECADE AGO RIVALS SUCH LONG ESTABLISHED ASIAN LUXURY HOTEL CHAINS AS MANDARIN ORIENTAL INTERNATIONAL LIMITED AND HONGKONG AND SHANGHAI HOTELS LIMITED IT HAS EXPANDED AGGRESSIVELY IN BOTH CHINA AND THE PHILIPPINES IN RECENT YEARS WHILE SOME OTHER ASIAN CHAINS PLAYED IT SAFE BY INVESTING IN U. S. AND EUROPEAN PROPERTIES MR. KUOK'S BIGGEST VENTURE IN CHINA DATES TO NINETEEN EIGHTY FOUR WHEN HE AGREED TO BUILD CHINA WORLD TRADE CENTRE IN BEIJING A FIVE HUNDRED TEN MILLION U. S. DOLLAR HOTEL APARTMENT AND COMMERCIAL COMPLEX DURING THE SUPPRESSION IN NINETEEN EIGHTY NINE OF CHINESE PRO DEMOCRACY DEMONSTRATIONS SEVERAL WINDOWS OF THE COMPLEX WERE SHATTERED THE CRACKDOWN SENT MANY INVESTORS AND TOURISTS SCURRYING BUT MR. KUOK CONTINUED TO INVEST IN THE DARK DAYS SAID NICK PEACOCK HEAD OF INVESTMENT RESEARCH AT SCHRODERS ASIA LIMITED TODAY MANY COMPANIES WOULD LIKE TO INVEST THERE HE SAID BUT YOU CAN'T JUST WALK INTO CHINA MR. KUOK HAS AN EDGE BECAUSE FEW CAN MATCH HIS CONTACTS THOSE CONNECTIONS CULTIVATED THROUGH HIS INTERESTS IN COMMODITIES SHIPPING MEDIA AND HOTELS HELP HIM OBTAIN CHOICE SITES AND JOINT VENTURE PARTNERS INDUSTRY EXECUTIVES SAY MEANWHILE MANDARIN ORIENTAL AND HONGKONG AND SHANGHAI HOTELS ARE STILL SEARCHING FOR OPPORTUNITIES IN CHINA A DECADE AGO HONGKONG AND SHANGHAI HAD A LEAD IN NINETEEN EIGHTY TWO IT BECAME THE FIRST INTERNATIONAL HOTEL COMPANY TO MANAGE A JOINT VENTURE HOTEL IN CHINA TAKING ON THE JIANGUO HOTEL BEIJING BUT IT RELINQUISHED MANAGEMENT IN NINETEEN EIGHTY SEVEN AND THAT OF THE GARDEN HOTEL GUANGZHOU IN NINETEEN NINETY BECAUSE CONTRACTS EXPIRED CURRENTLY THE FIRM OPERATES ONLY ONE HOTEL IN CHINA THE PALACE IN BEIJING IN WHICH IT HAS A TWENTY PERCENT STAKE IT PULLED OUT OF THE SIX HUNDRED FORTY SEVEN ROOM PORTMAN HOTEL PART OF THE SHANGHAI CENTRE COMMERCIAL AND RESIDENTIAL PROJECT IN NINETEEN NINETY AFTER NEARLY FOUR YEARS OF INVOLVEMENT CITING AN HONEST DIVERGENCE OF PHILOSOPHY SHANGRI LA INTERNATIONAL LIMITED THE KUOK GROUP'S HOTEL MANAGEMENT COMPANY STEPPED INTO THE BREACH TAKING OVER MANAGEMENT OF THE PORTMAN SHANGRI LA ASIA ACQUIRED A TWENTY PERCENT STAKE IN THE ENTIRE COMPLEX IN DECEMBER NINETEEN NINETY TWO NOW THE PORTMAN SHANGRI LA WITH ADJOINING APARTMENTS AND COMMERCIAL SPACE IS ONE OF SHANGRI LA ASIA'S MOST PROFITABLE OPERATIONS IN CHINA THE COSTS OF EXPANDING IN CHINA LED TO LOSSES IN NINETEEN NINETY AND NINETEEN NINETY ONE AT SHANGRI LA ASIA BUT THE COMPANY RECORDED NINETEEN NINETY TWO PROFIT OF H. K. TWO HUNDRED TWENTY TWO POINT FOUR MILLION DOLLARS TWENTY EIGHT POINT EIGHT MILLION U. S. DOLLARS FOR NINETEEN NINETY THREE THE COMPANY HAS SAID IT EXPECTS EARNINGS OF AT LEAST H. K. THREE HUNDRED SIXTY FIVE MILLION DOLLARS BARCLAYS DE ZOETE WEDD ASIA LIMITED FORECASTS THAT GROWTH WILL AVERAGE THIRTY PERCENT ANNUALLY THIS YEAR AND NEXT MR. KUOK ALSO MOVED INTO THE PHILIPPINES EVEN AS TURMOIL THERE MADE OTHER INVESTORS SKITTISH IN NINETEEN EIGHTY NINE KUOK GROUP INTERESTS AND KUOK PHILIPPINE PROPERTIES INCORPORATED WHICH IS LISTED LOCALLY BEGAN THE SIXTY THREE MILLION U. S. DOLLARS EDSA PLAZA HOTEL IN MANILA AND CLINCHED FINANCING TO BUILD THE ONE HUNDRED EIGHTEEN MILLION U. S. DOLLAR SHANGRI LA MANILA INTERNATIONAL FINANCE CORPORATION A WORLD BANK AFFILIATE MADE A TWENTY MILLION U. S. DOLLAR LOAN TO THE SHANGRI LA MANILA PROJECT AND LED A SYNDICATION TO RAISE ANOTHER THIRTY MILLION U. S. DOLLARS IN COMMERCIAL BANK LOANS IT ALSO ASSISTED OTHER PROJECTS THE INVESTMENTS APPARENTLY ARE PAYING OFF OCCUPANCY AT THE SEVEN HUNDRED THREE ROOM SHANGRI LA MANILA HAS HOVERED AT SEVENTY PERCENT TO EIGHTY PERCENT SINCE ITS APRIL OPENING DESPITE HIS EAGERNESS TO EXPAND THE CHAIN MR. KUOK HAS BACKED AWAY FROM SOME DEALS IN NINETEEN EIGHTY SEVEN AIDES SAY HE PULLED OUT OF A PROJECT IN SEOUL SOUTH KOREA BECAUSE OF WHAT HE SAW AS FICKLE BEHAVIOR ON THE PART OF THE JOINT VENTURE PARTNER IN NINETEEN NINETY TWO HE DECIDED NOT TO PROCEED WITH TWO PROJECTS IN BEIJING FOR SIMILAR REASONS IF IT DOESN'T FEEL RIGHT HE'LL JUST WALK AWAY FROM IT SAID JAMES KAPLAN A HONG KONG BASED HOTEL CONSULTANT SHANGRI LA ALSO HAS STUCK WITH A POLICY OF CHARGING PREMIUM ROOM RATES THE CHEAPEST PUBLISHED RATE IS ONE HUNDRED SEVENTY U. S. DOLLARS AT THE PORTMAN SHANGRI LA AND TWO HUNDRED SEVENTY FIVE U. S. DOLLARS AT THE ISLAND SHANGRI LA IN HONG KONG THOUGH THERE ARE SEASONAL AND CORPORATE DISCOUNTS WHEN MR. QUAN MET FUND MANAGERS IN EUROPE AND THE U. S. RECENTLY HE SAYS THEY WERE SURPRISED TO HEAR THAT THE WEAK ECONOMIES THERE HAVE QUOTE HARDLY HAD ANY IMPACT ON US QUOTE ASIAN TRAVELERS ACCOUNT FOR MORE THAN HALF THE CHAIN'S CLIENTELE AND ARE OFTEN BIGGER SPENDERS THAN WESTERN CUSTOMERS WHILE A WESTERNER MIGHT DINE ALONE AT THE HOTEL COFFEE SHOP MR. QUAN SAID THE ASIAN GUY WILL INVITE HIS FRIENDS AND BUSINESS COLLEAGUES AND HAVE A BIG CHINESE DINNER DRINKING EXPENSIVE COGNAC INSTEAD OF BEER BUT RANDOLPH GUTHRIE FORMER MANAGING DIRECTOR OF SHANGRI LA INTERNATIONAL WHICH MANAGES THE CHAIN'S HOTELS WORRIES THAT SERVICE MIGHT BE SUFFERING AS THE CHAIN BALLOONS MR. GUTHRIE NOW MANAGING DIRECTOR OF FORTE GRAND HOTELS IN BRITAIN SAID HE LEFT SHANGRI LA IN MARCH AFTER TEN YEARS BECAUSE HE WAS AT ODDS WITH A NEW MORE PRACTICAL APPROACH TO RUNNING THE HOTELS MR. GUTHRIE WHO CALLS MR. KUOK A VISIONARY AND AN ABSOLUTE GENIUS RECALLED THAT THE TYCOON USED TO INSPECT THE DECOR OF GUEST ROOMS AND THE FOOD IN HOTEL KITCHENS BUT MR. GUTHRIE SAID THAT IN RECENT YEARS MR. KUOK INCREASINGLY LEFT DAY TO DAY OPERATIONS TO FINANCIAL WIZARDS RATHER THAN INNKEEPERS HOWEVER A SHANGRI LA OFFICIAL REJECTED THAT IDEA I CERTAINLY DON'T THINK THE STANDARDS HAVE SLIPPED HE SNIFFED ADDING THAT MR. KUOK HAS THE ABILITY TO REMAIN INVOLVED AND DELEGATE AT THE SAME TIME THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT APPLE COMPUTER INCORPORATED THREE HUNDRED MILLION DOLLARS OF NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS SIX POINT FIVES AT NINETY NINE POINT NINE TWO FIVE TO YIELD SIX POINT FIVE ONE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SEVENTY FIVE BASIS POINTS ABOVE TREASURYS RATED B. A A ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE A MINUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY CONNECTICUT LIGHT AND POWER ONE HUNDRED FORTY MILLION DOLLARS OF FIRST AND REFUNDING MORTGAGE BONDS DUE FEBRUARY FIRST NINETEEN NINETY NINE PRICED AS FIVE POINT FIVES AT NINETY NINE POINT SEVEN EIGHT TWO TO YIELD FIVE POINT FIVE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF FORTY THREE BASIS POINTS ABOVE TREASURYS RATED B. A A ONE BY MOODY'S AND TRIPLE B. PLUS BY S. AND P. THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY GOLDMAN SACHS AND COMPANY CONNECTICUT LIGHT AND POWER IS A UNIT OF NORTHEAST UTILITIES CONNECTICUT LIGHT AND POWER ONE HUNDRED FORTY MILLION DOLLARS OF FIRST AND REFUNDING MORTGAGE BONDS DUE FEBRUARY FIRST TWO THOUSAND FOUR PRICED AS SIX POINT ONE TWO FIVES AT NINETY EIGHT POINT THREE FIVE FOUR TO YIELD SIX POINT THREE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE BONDS WHICH ARE NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF SIXTY FIVE BASIS POINTS ABOVE TREASURYS THE ISSUE WHICH IS RATED B. A A ONE BY MOODY'S AND TRIPLE B. PLUS BY S. AND P. WAS SOLD THROUGH A COMPETITIVE BID WON BY SALOMON BROTHERS INCORPORATED FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED MILLION DOLLARS OF STEP UP NOTES DUE FEBRUARY TWENTY FIFTH NINETEEN NINETY NINE PRICED AT PAR TO YIELD FOUR POINT TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR ONE YEAR AND THE FIRST COUPON WAS PRICED SPREAD OF THIRTY BASIS POINTS ABOVE TREASURYS THE NOTES WILL STEP UP TO FIVE POINT EIGHT PERCENT ON FEBRUARY TWENTY FIFTH NINETEEN NINETY FIVE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST TENNESSEE BANK FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED MILLION DOLLARS OF NOTES DUE FEBRUARY FIFTEENTH NINETEEN NINETY SIX PRICED AT PAR TO YIELD FOUR POINT THREE ONE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR ONE YEAR AND WERE PRICED AT A SPREAD OF THREE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED FEDERAL HOME LOAN MORTGAGE CORPORATION THREE HUNDRED MILLION DOLLARS OF THREEYEAR CALLABLE DEBENTURES DATED FEBRUARY TENTH PRICED AT PAR TO YIELD FOUR POINT SEVEN EIGHT PERCENT THE NOTES ARE CALLABLE AFTER ONE YEAR INTEREST WILL BE PAID SEMIANNUALLY ON AUGUST TENTH AND FEBRUARY TENTH BEGINNING THIS YEAR IN AUGUST THE DEBENTURES MATURE ON FEBRUARY TENTH NINETEEN NINETY SEVEN AND WILL BE SOLD THROUGH FREDDIE MAC'S SELLING GROUP HERTZ CORPORATION ONE HUNDRED FIFTY MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIRST TWO THOUSAND ONE PRICED AS SIXES AT NINETY NINE POINT ONE THREE FOUR TO YIELD SIX POINT ONE FIVE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SIXTY FIVE BASIS POINTS ABOVE TREASURYS RATED B. A A ONE BY MOODY'S AND TRIPLE B. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY J. P. MORGAN SECURITIES INCORPORATED STONE CONTAINER CORPORATION SEVEN HUNDRED TEN MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIRST TWO THOUSAND ONE PRICED AT PAR TO YIELD NINE POINT EIGHT SEVEN FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLE B. ONE BY MOODY'S AND SINGLE B. BY S. AND P. THE NOTES WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED SUNTRUST BANKS INCORPORATED TWO HUNDRED MILLION DOLLARS OF SUBORDINATED NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS SIX POINT ONE TWO FIVES AT NINETY NINE POINT EIGHT EIGHT SEVEN TO YIELD SIX POINT ONE FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF FORTY FIVE BASIS POINTS ABOVE THE WHEN ISSUED TEN YEAR TREASURY RATED SINGLE A TWO BY MOODY'S AND SINGLE A BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED IGEN INCORPORATED INITIAL OFFERING OF TWO POINT SIX MILLION COMMON SHARES PRICED AT ELEVEN DOLLARS AND FIFTY CENTS APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY AND C. S. FIRST BOSTON INCORPORATED RENAISSANCE COMMUNICATIONS CORPORATION INITIAL OFFERING OF SIX POINT THREE MILLION COMMON SHARES PRICED AT NINETEEN DOLLARS APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY AND DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION STONE CONTAINER CORPORATION SIXTEEN POINT FIVE MILLION COMMON SHARES PRICED AT FIFTEEN DOLLARS AND TWENTY FIVE CENTS APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED STORAGE EQUITIES INCORPORATED FIVE POINT TWO MILLION COMMON SHARES PRICED AT FOURTEEN DOLLARS AND SEVENTY FIVE CENTS APIECE THROUGH UNDERWRITERS LED BY PAINEWEBBER INCORPORATED AND BEAR STEARNS AND COMPANY YOUTH SERVICES INTERNATIONAL INCORPORATED INITIAL PUBLIC OFFERING OF ONE POINT THREE MILLION COMMON SHARES PRICED AT TEN DOLLARS APIECE THROUGH UNDERWRITERS LED BY FERRIS BAKER WATTS INCORPORATED MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY THREE HUNDRED THIRTY TWO MILLION DOLLARS NINETEEN NINETY FOUR SERIES A AND SERIES B. POWER SUPPLY SYSTEM BONDS PRICED BY A BEAR STEARNS AND COMPANY GROUP INCLUDED IN THE OFFERING ARE ONE HUNDRED SIXTEEN MILLION DOLLARS NINETEEN NINETY FOUR SERIES A REVENUE BONDS WHICH ARE PRICED TO YIELD FROM TWO POINT FOUR PERCENT IN JULY NINETEEN NINETY FOUR TO FIVE POINT TWO EIGHT PERCENT IN TWO THOUSAND SEVENTEEN BONDS DUE IN NINETEEN NINETY FOUR TO OH NINE ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION AND BONDS DUE IN TWO THOUSAND TEN TO SEVENTEEN ARE INSURED BY AMBAC INDEMNITY CORPORATION THE BONDS CARRY TRIPLE A RATINGS FROM BOTH MOODY'S AND S. AND P. THE TWO HUNDRED SIXTEEN MILLION DOLLARS NINETEEN NINETY FOUR SERIES B. REFUNDING BONDSWHICH ARE INSURED BY M. B. I. A. ARE PRICED TO YIELD FROM TWO POINT FOUR PERCENT IN JULY TO FIVE POINT TWO EIGHT PERCENT IN TWO THOUSAND SEVENTEEN NEW YORK STATE DORMITORY AUTHORITY ONE HUNDRED FORTY TWO POINT SEVEN MILLION DOLLARS SERIES NINETEEN NINETY FOUR A REVENUE BONDS PRICED BY A GOLDMAN SACHS AND COMPANY GROUP YIELDS RANGE FROM FIVE POINT ONE PERCENT IN TWO THOUSAND ELEVEN TO FIVE POINT TWO FIVE PERCENT IN TWO THOUSAND EIGHTEEN AND TWO THOUSAND TWENTY FOUR THE BONDS WHICH ARE FOR THE MOUNT SINAI SCHOOL OF MEDICINE ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION AND CARRY TRIPLE A RATINGS FROM BOTH MOODY'S AND S. AND P. SAN DIEGO FOUR HUNDRED THIRTY MILLION DOLLAR PENSION OBLIGATION BONDS PRICED BY A MERRILL LYNCH AND COMPANY GROUP AND GIVEN YIELDS THAT RANGE FROM FOUR POINT SEVEN TWO PERCENT IN NINETEEN NINETY SIX TO SIX POINT FIVE NINE PERCENT IN TWO THOUSAND SEVEN THE BONDS WHICH ARE TAXABLE HAVE A SINGLE A RATING FROM MOODY'S AND A SINGLE A PLUS RATING FROM S. AND P. FEDERAL HOME LOAN MORTGAGE CORPORATION ONE POINT FIVE FIVE BILLION DOLLARS OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY AND COMPANY THE OFFERING SERIES GOLD ONE THOUSAND SIX HUNDRED NINETY FIVE IS BACKED BY FREDDIE MAC GOLD THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT SIX PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS BERLINER HANDELS UND FRANKFURTER BANK GERMANY ONE HUNDRED FIFTY BILLION ITALIAN LIRE OF EIGHT POINT ONE TWO FIVE PERCENT EUROBONDS DUE FEBRUARY TWENTY EIGHTH TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED ONE POINT SEVEN VIA BANCA COMMERCIALE ITALIANA BONDS YIELD EIGHT POINT ONE SIX PERCENT AFTER FULL FEES OF ONE POINT EIGHT SEVEN FIVE CHELTENHAM AND GLOUCESTER BUILDING SOCIETY UNITED KINGDOM ONE HUNDRED MILLION POUNDS OF FLOATING RATE EURONOTES DUE JANUARY NINETEEN NINETY NINE VIA KLEINWORT BENSON LIMITED BONDS TRADE INTERCHANGEABLY WITH ONE HUNDRED FIFTY MILLION POUNDS OF OUTSTANDING IDENTICAL NOTES REOFFERED AT NINETY NINE POINT EIGHT ONE PAYABLE SEMIANNUALLY AT THREE MONTH LONDON INTERBANK OFFERED RATE PLUS TEN BASIS POINTS FROM APRIL TWENTIETH BEFORE THAT COUPON AT FIVE POINT FOUR ONE TWO FIVE PERCENT CALLABLE QUARTERLY AT PAR FROM JANUARY NINETEEN NINETY EIGHT FEES UNDISCLOSED COMPANIA GENERAL DE COMBUSTIBLES S. A. ARGENTINA FIFTY MILLION DOLLARS OF EIGHT POINT FIVE PERCENT EUROBONDS DUE FEBRUARY TWENTY SECOND NINETEEN NINETY NINE AT NINETY NINE POINT FIVE VIA PARIBAS CAPITAL MARKETS BONDS YIELD MARGIN OF THREE HUNDRED FIFTY BASIS POINTS OVER COMPARABLE U. S. TREASURY FEES ONE PAYABLE SEMIANNUALLY DRESDNER INTERNATIONAL FINANCE GERMAN PARENT ONE HUNDRED MILLION MARKS OF LEVERAGED FLOATING RATE EURONOTES DUE MARCH FIRST TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT TWO VIA DRESDNER BANK A. G. FIRST TWO YEARS ANNUAL COUPON FIVE POINT ONE TWO FIVE PERCENT THEREAFTER PAYABLE SEMIANNUALLY AT TWICE SIX MONTH MARK LIBOR MINUS SIX POINT NINE PERCENT GUARANTOR DRESDNER BANK A. G. FEES ONE POINT FIVE EUROPEAN INVESTMENT BANK SUPRANATIONAL FIFTEEN BILLION PORTUGUESE ESCUDOS OF EIGHT POINT TWO PERCENT BONDS DUE FEBRUARY TWENTY THIRD TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED ONE POINT ONE TWO FIVE VIA DEUTSCHE BANK DE INVESTIMENTO AND BANCO PORTUGUES DO ATLANTICO E. P. RECOMMENDED REOFFER NINETY NINE POINT SEVEN FIVE TO YIELD EIGHT POINT TWO FIVE PERCENT FEES ONE POINT SIX TWO FIVE LESS ZERO POINT ONE TWO FIVE FOR LEAD MANAGER HONG KONG CHINA TREASURY LIMITED HONG KONG ONE HUNDRED TWENTY MILLION DOLLARS OF PRIVATELY PLACED GUARANTEED CONVERTIBLE TWO PERCENT NOTES DUE DECEMBER THIRTY FIRST NINETEEN NINETY NINE AT PAR VIA DAIWA BANK SWITZERLAND NOTES CONVERTIBLE FROM MARCH TWENTY SECOND TO NOVEMBER THIRTIETH NINETEEN NINETY NINE AT FIVE POINT ONE SEVEN TWO HONG KONG DOLLARS A SIXTEEN PERCENT PREMIUM ABOVE THREE DAY AVERAGE CLOSING SHARE PRICE EXCHANGE RATE IS TO BE FIXED MONDAY CO MANAGER FEES ONE POINT SEVEN FIVE OLYMPIC CORPORATION JAPAN FIVE BILLION YEN OF ONE POINT TWO FIVE PERCENT CONVERTIBLE EUROBONDS DUE FEBRUARY TWENTY EIGHTH NINETEEN NINETY EIGHT AT ISSUE PRICE PAR NIKKO EUROPE P. L. C. BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES FROM MARCH FOURTEENTH TO FEBRUARY TWENTIETH NINETEEN NINETY EIGHT AT INDICATED PREMIUM TWO POINT FIVE PERCENT TERMS ARE TO BE FIXED TUESDAY CALLABLE FROM MARCH FIRST NINETEEN NINETY SIX AT ONE HUNDRED ONE DECLINING SEMIANNUALLY BY ZERO POINT TWO FIVE POINT TO PAR SUBJECT TO SHARE PRICE BEING AT LEAST ONE HUNDRED THIRTY PERCENT OF CONVERSION PRICE FEES TWO POINT FIVE LESS ZERO POINT THREE FIVE FOR LEAD MANAGER PAYABLE SEMIANNUALLY RENAULT FRANCE TWO BILLION FRENCH FRANCS OF SIX POINT TWO FIVE PERCENT EUROBONDS DUE MARCH SECOND TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT TWO SIX VIA SOCIETE GENERALE REOFFERED AT NINETY NINE POINT SIX THREE FIVE TO YIELD SIX POINT THREE PERCENT A MARGIN OF FIFTY SIX BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES TWO RHEINLAND PFALZ GERMAN STATE FIFTY MILLION MARKS OF STEPUP BONDS DUE NOVEMBER TWENTY NINTH TWO THOUSAND EIGHTEEN AT ISSUE AND REOFFER PRICE ONE HUNDRED POINT THREE FIVE VIA MERRILL LYNCH BANK A. G. FIRST TEN YEARS COUPON SIX POINT OH EIGHT PERCENT THEREAFTER SIX POINT EIGHT FIVE PERCENT PUT OPTION EXERCISABLE ANNUALLY AT PAR FROM TENTH ANNIVERSARY BONDS TO TRADE INTERCHANGEABLY WITH ONE HUNDRED MILLION MARKS OF IDENTICAL BONDS OUTSTANDING FEES UNDISCLOSED S. G. WARBURG GROUP P. L. C. U. K. ONE HUNDRED TWENTY FIVE MILLION POUNDS OF SUBORDINATED UNDATED NINE PERCENT EUROBONDS AT ISSUE PRICE ONE HUNDRED ONE POINT SEVEN THREE SEVEN VIA S. G. WARBURG SECURITIES LIMITED REOFFERED AT NINETY NINE POINT NINE EIGHT SEVEN TO YIELD NINE POINT OH OH ONE PERCENT ANNUALLY A SPREAD OF TWO HUNDRED TWENTY FIVE BASIS POINTS OVER EIGHT POINT SEVEN FIVE PERCENT GILT DUE TWO THOUSAND SEVENTEEN CALLABLE FROM FEBRUARY EIGHTEENTH NINETEEN NINETY NINE TO FEBRUARY SEVENTEENTH TWO THOUSAND TWENTY FOUR AT HIGHER OF PAR OR PRICE TO YIELD FLAT WITH PREVAILING LONG DATED GILT CALLABLE THEREAFTER AT PAR FEES TWO POINT FIVE WORLD BANK SUPRANATIONAL ONE HUNDRED MILLION MARKS OF REVERSECOUPON FLOATING RATE EURONOTES DUE MARCH EIGHTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT TWO FIVE VIA MITSUBISHI BANK DEUTSCHLAND GMBH PAYABLE SEMIANNUALLY AT SIX MONTH MARK LIBOR PLUS TWENTY SEVEN POINT FIVE BASIS POINTS FIRST FIVE YEARS REVERTING TO ANNUAL COUPON SIX POINT THREE SEVEN FIVE PERCENT LAST FIVE YEARS FEES ZERO POINT TWO FIVE SMALL COMPANY STOCKS AGAIN SHOWED RESILIENCE BOUNCING OFF MIDDAY LOWS TO END THE SESSION ONLY SLIGHTLY LOWER THE MAJOR SMALL CAPITALIZATION INDEXES POSTED MARGINAL DECLINES TRADERS AND ANALYSTS SAID THE OUTLOOK FOR A STRONG ECONOMY AND CONTINUED STRONG EARNINGS REPORTS ARE OVERPOWERING FEARS OF A RESURGENCE IN INFLATION OR A TIGHTENING OF MONETARY POLICY BY THE FEDERAL RESERVE ON NASDAQ DECLINERS SLIGHTLY OUTNUMBERED ADVANCERS ONE THOUSAND FIVE HUNDRED NINETY FIVE TO ONE THOUSAND FOUR HUNDRED THIRTY SEVEN ON TOTAL VOLUME OF THREE HUNDRED THIRTY ONE POINT SIX MILLION SHARES UP FROM THREE HUNDRED THIRTY FOUR POINT NINE MILLION SHARES WEDNESDAY NATIONAL MARKET VOLUME WAS TWO HUNDRED SEVENTY SEVEN MILLION SHARES COMPARED WITH TWO HUNDRED EIGHTY FOUR MILLION WEDNESDAY DESPITE THE LINGERING THREAT OF HIGHER INTEREST RATES THE SMALL COMPANY MARKET CONTINUES TO BE A PICK AND CHOOSE ARENA IN WHICH NEWS AND COMPANY FUNDAMENTALS TEND TO OVERPOWER MARKETWIDE TRENDS SMALL COMPUTER TECHNOLOGY COMPANIES GENERALLY ENDED LOWER BUT I. E. C. ELECTRONICS A NEWARK N. Y. COMPANY THAT MAKES COMPLEX PRINTED CIRCUIT BOARD ASSEMBLIES AND ELECTRONIC SYSTEMS ROSE ONE AND ONE HALF OR NINE POINT TWO PERCENT TO SEVENTEEN AND THREE QUARTERS THE RISE COMES ON THE HEELS OF RAYMOND JAMES'S INITIATION OF COVERAGE WITH A QUOTE BUY QUOTE RATING RAYMOND JAMES PREDICTED I. E. C. WHOSE LARGEST CUSTOMER IS COMPAQ COMPUTER WILL SHOW NET INCOME GROWTH OF FORTY THREE PERCENT AND NINETEEN PERCENT IN FISCAL NINETEEN NINETY FOUR AND NINETEEN NINETY FIVE RESPECTIVELY RETAILING ISSUES ALSO SHOWED A MARKED TENDENCY TO REACT TO NEWS GOTTSCHALKS WHICH OPERATES A CHAIN OF DEPARTMENT STORES WAS UP ONE AND ONE QUARTER OR FIFTEEN PERCENT TO NINE AND ONE HALF IN NEW YORK STOCK EXCHANGE TRADING AFTER REPORTING THAT JANUARY SAME STORE SALES ROSE TEN POINT FIVE PERCENT FROM A YEAR EARLIER THE FRESNO CALIFORNIA RETAILER SAID IT EXPECTS A STRONG AND PROFITABLE FOURTH QUARTER PAYLESS CASHWAYS ROSE ONE AND THREE QUARTERS OR NINE POINT NINE PERCENT TO NINETEEN AND THREE EIGHTHS IN BIG BOARD TRADING THE KANSAS CITY MISSOURI CHAIN OF BUILDING SUPPLY STORES REPORTED A TEN POINT EIGHT PERCENT INCREASE IN JANUARY SAME STORE SALES CHICO'S F. A. S. A FORT MYERS FLORIDA CLOTHING STORE OPERATOR PLUNGED THREE OR NINETEEN PERCENT TO TWELVE AND THREE QUARTERS AFTER ITS STOCK WAS DOWNGRADED BY RAYMOND JAMES TO HOLD FROM BUY LOAN AMERICA FINANCIAL A MIAMI LAKES FLORIDA MORTGAGE BANKING SERVICER WAS UP TWO OR EIGHTEEN PERCENT AT THIRTEEN AFTER SAYING IT MIGHT BE BOUGHT BY A FINANCIAL INSTITUTION THAT WASN'T IDENTIFIED CYRIX A RICHARDSON TEXAS MICROPROCESSOR FIRM WAS UP THREE AND ONE EIGHTH OR FOURTEEN PERCENT AT TWENTY SIX AND ONE EIGHTH FOLLOWING AN ANNOUNCEMENT LATE WEDNESDAY THAT THE COMPANY AND INTEL SETTLED VARIOUS ISSUES IN THEIR LEGAL BATTLE OVER CYRIX'S RIGHT TO SELL COMPUTER CHIPS THAT ARE CLONES OF INTEL'S CHIPS KOMAG A MILPITAS CALIFORNIA MAKER OF THIN FILM COMPONENTS FOR DISK DRIVES ROSE THREE AND ONE HALF OR SEVENTEEN PERCENT TO TWENTY THREE AND FIVE EIGHTHS DASTEK ITS JOINT VENTURE WITH ASAHI GLASS AMERICA SAID IT WILL LEAVE THE INDUCTIVE THIN FILM HEAD BUSINESS AFTER FULFILLING EXISTING COMMITMENTS THE COMPANY SAID IT WILL TAKE A SUBSTANTIAL FOURTH QUARTER CHARGE MERCURY AIR GROUP ROSE THREE QUARTERS OR SEVENTEEN PERCENT TO FIVE AND ONE EIGHTH IN AMERICAN STOCK EXCHANGE TRADING THE LOS ANGELES AIR CARGO COMPANY REPORTED SECOND QUARTER EARNINGS OF THIRTY FOUR CENTS A SHARE UP FROM SIXTEEN CENTS A YEAR AGO ONE OF THE DAY'S BIGGEST DECLINERS WAS FOURTH DIMENSION SOFTWARE OF TEL AVIV WHICH FELL SEVEN AND FIVE EIGHTHS OR FORTY PERCENT TO ELEVEN AND ONE HALF THE COMPANY LATE WEDNESDAY REPORTED FOURTH QUARTER EARNINGS OF THREE CENTS A SHARE COMPARED WITH SIXTEEN CENTS A YEAR EARLIER KULICKE AND SOFFA A WILLOW GROVE PENNSYLVANIA SEMICONDUCTOR COMPANY DROPPED THREE AND ONE EIGHTH OR TWENTY ONE PERCENT TO ELEVEN AND THREE QUARTERS AFTER IT REPORTED FISCAL FIRST QUARTER EARNINGS OF TWENTY EIGHT CENTS A SHARE THAT WAS ABOVE LAST YEAR'S SIX CENTS BUT WELL BELOW ANALYSTS' EXPECTATIONS OF THIRTY NINE CENTS VENTRITEX FELL FOUR OR TEN PERCENT TO THIRTY FIVE AND ONE HALF AFTER HAMBRECHT AND QUIST DOWNGRADED THE SUNNYVALE CALIFORNIA COMPANY TO UNDERPERFORM FROM BUY PEOPLE KEEP EXPECTING THE MARKET TO TANK BUT IT JUST WON'T COOPERATE WITH THE BEARS SAID WILLIAM SULYA HEAD OF OVER THE COUNTER TRADING AT A. G. EDWARDS SMALL COMPANY STOCKS FELL EARLY ON A WAVE OF PROFIT TAKING AND WEAKNESS IN THE BOND MARKET BUT AFTER MIDDAY QUOTE WE BOUNCED BACK VERY SMARTLY QUOTE MR. SULYA SAID THE BUYERS CAME OUT OF THE WALLS HE SAID ONE OF THE STRENGTHS OF THE SMALLCAP MARKET IS THAT IT'S NOT RUNNING AWAY ON THE UPSIDE IT'S PICKING AWAY IT'S A CONTROLLED SITUATION SOME BROKERS THINK INVESTORS ARE BECOMING JUST A LITTLE TOO SMART FOR THEIR OWN GOOD THE BROKERS' GOOD THAT IS INDIVIDUALS NOWADAYS RECEIVE A WEALTH OF INFORMATION AND ADVICE ABOUT FINANCES FROM NEWSPAPERS MAGAZINES CABLE TELEVISION INVESTMENT NEWSLETTERS AND ON LINE DATA SERVICES THE EXPLOSIVE GROWTH OF MUTUAL FUNDS MEANWHILE MAKES IT EASY FOR SMALL INVESTORS TO HIRE EXPERTS TO MANAGE THEIR MONEY AND TO COMPARISON SHOP AMONG THOSE EXPERTS INDIVIDUALS CAN EASILY PERUSE THE MANAGERS' TRACK RECORDS IN STATISTICS PUBLISHED BY SUCH ORGANIZATIONS AS MORNINGSTAR INCORPORATED AND LIPPER ANALYTICAL SERVICES INCORPORATED NOT SURPRISINGLY THESE TRENDS ALARM BROKERS BECAUSE THE MORE INDIVIDUAL INVESTORS LEARN TO THINK FOR THEMSELVES THE LESS THEY NEED THEIR BROKERS DATA ON MANAGERS' TRACK RECORDS IN PARTICULAR QUOTE RENDER THE SALESMAN SUPERFLUOUS QUOTE WARNS NICK MURRAY A POPULAR INDUSTRY SPEAKER AND COLUMNIST FOR INVESTMENT ADVISOR A TRADE PUBLICATION THAT INCLUDES TIPS FOR BROKERS ON HOW TO SELL MORE EFFECTIVELY PERFORMANCE NUMBERS ALSO MAKE THE COSTS OF BROKER SOLD MUTUAL FUNDS OBVIOUS TO INVESTORS IN CONTRAST TO NO LOAD FUNDS BROKER SOLD FUNDS TYPICALLY COME WITH HEFTY LOADS OR SALES CHARGES AS WELL AS SURRENDER FEES WHAT'S MORE ALL THE ACADEMIC RESEARCH I'VE EVER SEEN SHOWS THAT THERE'S NO DIFFERENCE IN PERFORMANCE BETWEEN LOAD AND NO LOAD FUNDS UNTIL YOU ADD IN THE SALES LOADS SAYS JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS ONCE LOADS ARE ACCOUNTED FOR THE BROKER SOLD FUNDS TEND TO LAG THE MORE YOUR PRESENTATIONS MAKE TRACK RECORD A CRITICAL VARIABLE THE MORE CLEARLY YOU TELL THE INVESTOR TO JUST GO BUY MONEY MAGAZINE'S TOP PERFORMING NO LOAD FUND MR. MURRAY TELLS BROKERS TO SELL THEIR FUNDS IN THE FACE OF SUCH EVIDENCE BROKERS OFTEN RESORT TO TELLING CLIENTS TO IGNORE THE BOTTOM LINE YOU CAN'T ARGUE WITH PERFORMANCE NUMBERS SO IT'S EASIER FOR THE BROKER TO SAY DON'T LOOK AT PERFORMANCE TRUST ME TO HELP YOU CHOOSE A FUND SAYS MR. MARKESE SOMETIMES THE BROKERS EVEN FIGHT BACK WITH A FEW STATISTICS OF THEIR OWN TAKE A RECENT STUDY FROM DALBAR FINANCIAL SERVICES A COMPANY THAT PRODUCES MUTUAL FUND MARKETING INFORMATION AND RESEARCH FOR ORGANIZATIONS THAT RELY ON BROKERS AND OTHER SALESPEOPLE TO DISTRIBUTE THEIR FUNDS THE DALBAR STUDY PURPORTS TO SHOW THAT QUOTE NO LOAD FUND INVESTORS UNDERPERFORM LOAD INVESTORS QUOTE HOWEVER IT DOESN'T ACTUALLY COMPARE PERFORMANCE RATHER IT MEASURES RETENTION RATES OR HOW LONG INVESTORS HOLD ON TO THEIR MUTUAL FUNDS ALTHOUGH IT DOESN'T SPECIFY HOW THOSE RATES ARE MEASURED ACCORDING TO DALBAR LOAD FUND INVESTORS HOLD ONTO THEIR MUTUAL FUNDS FOR AN AVERAGE OF FORTY EIGHT POINT EIGHT FOUR MONTHS COMPARED WITH AN AVERAGE TWENTY ONE POINT EIGHT FOUR MONTHS FOR NO LOAD INVESTORS THE RESULTS ARE BASED ON DALBAR'S PROPRIETARY DATA BASE OF FUNDS FOR THE NEARLY TEN YEAR PERIOD BETWEEN JANUARY FIRST NINETEEN EIGHTY FOUR AND SEPTEMBER THIRTIETH NINETEEN NINETY THREE BASED ON THESE RETENTION RATES THE STUDY CONCLUDES THAT INVESTORS WHO BUY MUTUAL FUNDS FROM BROKERS WERE IN THE MARKET LONGER AND THEREFORE ENJOYED HIGHER RETURNS IN CONTRAST DIRECT BUYERS WERE MORE LIKELY TO CHURN THEIR ACCOUNTS WHICH RESULTED IN LOWER RETURNS THE STUDY SAYS BUT THAT DOESN'T WASH WITH MARTIN J. GRUBER CHAIRMAN OF THE FINANCE DEPARTMENT AT THE STERN SCHOOL OF BUSINESS AT NEW YORK UNIVERSITY THEY'RE MAKING AN UNWARRANTED CONCLUSION HE SAYS FOR ONE THING THE STUDY ASSUMES THAT PEOPLE WITH NO LOAD FUNDS GOT OUT OF THE MARKET HE NOTES IN REALITY THEY MAY HAVE MOVED INTO OTHER STOCK FUNDS FURTHER SAYS MR. GRUBER IT'S NOT SURPRISING THAT THE AVERAGE DOLLAR REMAINED INVESTED LONGER IN LOAD FUNDS BUT THIS MAY BE MORE A FUNCTION OF SURRENDER CHARGES THAT PENALIZE INVESTORS FOR TAKING THEIR MONEY OUT OF SUCH FUNDS THAN A REFLECTION OF PRUDENT HAND HOLDING ON THE PART OF THE BROKER WILL GOETZMANN A FINANCE PROFESSOR AT COLUMBIA UNIVERSITY BUSINESS SCHOOL WHO SPECIALIZES IN MUTUAL FUND PERFORMANCE AND ASSET FLOWS SAYS IT'S IMPOSSIBLE TO TRACK INDIVIDUAL INVESTORS USING DALBAR'S METHODS MR. GOETZMANN SAYS THAT CURRENT RESEARCH ON CASH FLOWS IN AND OUT OF MUTUAL FUNDS SHOWS THAT WHILE MONEY POURS QUICKLY INTO FUNDS WITH WINNING RECORDS IT OOZES RATHER SLOWLY OUT OF LOSING FUNDS HE LIKENS IT TO A ROACH MOTEL EFFECT QUOTE INVESTORS WHO BUY LOAD FUNDS MAY BE LESS KNOWLEDGEABLE AND MORE PRONE TO STAY IN LOSING FUNDS LONGER QUOTE HE SAYS STILL JERRY TUCCILLE SENIOR FINANCIAL ANALYST AT DALBAR DEFENDS THE STUDY ASSUMING LOAD FUND INVESTORS DID TEND TO STAY PUT LONGER THUS ENJOYING MORE OF THE BENEFITS OF THE PAST DECADE'S BULL MARKET THEY WOULD HAVE REAPED RETURNS OF SIX POINT EIGHT TWO PERCENT A YEAR ON A COMPOUND ANNUAL BASIS MEANWHILE THE RESTLESSNESS DALBAR SEES AMONG NO LOAD FUND INVESTORS WOULD HAVE REDUCED THEIR RETURNS TO JUST FIVE POINT SIX ONE PERCENT COMPOUNDED ANNUALLY THE STUDY SHOWS ACTUAL PERFORMANCE FIGURES REVERSE THOSE STANDINGS HOWEVER ACCORDING TO MORNINGSTAR THE AVERAGE COMPOUNDED ANNUAL RETURN FOR NO LOAD FUNDS WAS TWELVE POINT THREE EIGHT PERCENT FOR THE TEN YEARS ENDED DECEMBER THIRTY FIRST NINETEEN NINETY THREE A NOTCH ABOVE THE TWELVE POINT ONE SIX PERCENT AVERAGE FOR BROKER SOLD FUNDS THOSE RESULTS DON'T ACCOUNT FOR LOADS WHICH WOULD MAKE THE BROKER SOLD FUNDS LOOK EVEN WORSE INCIDENTALLY BOTH GROUPS DID EXTREMELY POORLY RELATIVE TO SOMEONE WHO JUST BOUGHT AND HELD A FUND THAT TRACKED THE STANDARD AND POOR'S FIVE HUNDRED INDEX THIS LOW COST INVESTMENT STRATEGY WOULD HAVE PRODUCED COMPOUND ANNUAL RETURNS OF FIFTEEN POINT OH SEVEN PERCENT IN THE NINETEEN EIGHTY FOUR TO NINETY THREE PERIOD INVESTORS WHO RELY ON PERFORMANCE DATA TO PICK AND CHOOSE AMONG MUTUAL FUNDS SHOULD BE CAREFUL NOT TO READ MORE INTO THOSE NUMBERS THAN IS WARRANTED HOWEVER FOR INSTANCE TO AVOID THE APPLES TO ORANGES PROBLEM ONLY JUDGE PERFORMANCE RELATIVE TO SIMILAR INVESTMENTS SAYS MR. MARKESE AND TO CHECK THE INTEGRITY OF THE DATA EXPERTS SAY INVESTORS SHOULD MAKE SURE THE NUMBERS ARE SUPPLIED BY A THIRD PARTY SUCH AS MORNINGSTAR OR LIPPER COVER A MEANINGFUL STRETCH OF TIME PREFERABLY FIVE YEARS OR LONGER AND HAVE BEEN ADJUSTED FOR ALL FEES EXPENSES AND POTENTIAL LOADS IT'S ALSO USEFUL TO FIND OUT HOW A FUND DOES IN BOTH BULL AND BEAR MARKETS A GOOD BROKER WILL BE HAPPY TO SUPPLY THIS INFORMATION AND WILL WELCOME AN INVESTOR'S DESIRE TO BETTER EDUCATE HIMSELF SAYS JENNIFER STRICKLAND A CONSULTANT AT MORNINGSTAR A LOT OF FINANCIAL PLANNERS AND BROKERS HAVE TOLD ME THAT THEIR BEST CUSTOMERS ARE THE BEST EDUCATED CUSTOMERS SHE SAYS INDEPENDENT COUNSEL LAWRENCE WALSH'S SEVEN YEAR IRAN CONTRA PROBE FINALLY ENDED YESTERDAY WITH THE RELEASE OF A FIVE HUNDRED SIXTY SIX PAGE REPORT THAT CHARGED THE REAGAN WHITE HOUSE QUOTE COVERED UP QUOTE THE SCANDAL IT REMAINS TO BE SEEN WHETHER THE WALSH PROSECUTION IN FACT SURFACED ANYTHING SIGNIFICANT THAT HASN'T ALREADY BEEN REPORTED BY THE TOWER COMMISSION OR CONGRESSIONAL HEARINGS IN NINETEEN EIGHTY SEVEN NONETHELESS TAX PAYERS PAID DEARLY FOR THE WALSH MARATHON HE SPENT AT LEAST THIRTY SEVEN MILLION DOLLARS ON RESEARCH LAWYERS AND OFTEN QUESTIONABLE EXPENSES THAT BREAKS DOWN TO SIXTY FIVE THOUSAND THREE HUNDRED SEVENTY ONE DOLLARS FOR EVERY ONE OF THE FIVE HUNDRED SIXTY SIX PAGES IN HIS FINAL REPORT ASSUMING TWO HUNDRED FIFTY WORDS A PAGE HIS REPORT COST AN EYE POPPING TWO THOUSAND SIX HUNDRED FIFTEEN DOLLARS A WORD A NEW STANDARD NO DOUBT FOR RUNNING THE METER ON A LITIGATION IDLING IN PARK HEALTH CARE POLITICS ARE NOW AT A STALEMATE PUBLIC ENTHUSIASM FOR THE PRESIDENT'S PLAN HAS PRECIPITOUSLY DECLINED BUT ITS OPPONENTS HAVE FAILED TO CAPITALIZE ON ITS OBVIOUS FLAWS AND KILL IT OUTRIGHT THIS IS JUST A TEMPORARY LULL HOWEVER THE PLAN IS DUE FOR RESUSCITATION UNLESS A STRONG COUNTEROFFENSIVE IS MOUNTED IN POLITICAL TERMS THAT TASK FALLS MAINLY TO MEMBERS OF THE REPUBLICAN PARTY WHAT FORM SHOULD THEIR OPPOSITION TAKE A SIMPLE GREEN EYESHADE CRITICISM OF THE PRESIDENT'S HEALTH PLAN ON THE GROUNDS THAT ITS NUMBERS DON'T ADD UP THEY DON'T OR THAT IT COSTS TOO MUCH IT DOES OR THAT IT WILL KILL JOBS AND DISRUPT THE ECONOMY IT WILL IS FINE AS FAR AS IT GOES BUT IT IS NOT ENOUGH SUCH OPPOSITION CAN ONLY WIN CONCESSIONS ON THE WAY TO A QUOTE LEAST BAD QUOTE COMPROMISE BUT PASSAGE OF THE CLINTON HEALTH CARE PLAN IN ANY FORM WOULD BE DISASTROUS IT WOULD GUARANTEE AN UNPRECEDENTED FEDERAL INTRUSION INTO THE AMERICAN ECONOMY ITS SUCCESS WOULD SIGNAL A REBIRTH OF CENTRALIZED WELFARE STATE POLICY AT THE VERY MOMENT THAT SUCH POLICY IS BEING PERCEIVED AS A FAILURE IN OTHER AREAS AND NOT LEAST IT WOULD DESTROY THE PRESENT BREADTH AND QUALITY OF THE AMERICAN HEALTH CARE SYSTEM THE WORLD'S FINEST EVEN WITH SO MUCH AGAINST IT HOWEVER THE CLINTON PLAN WILL NOT BE EASY TO DEFEAT TO GET BIPARTISAN BACKING AND LURE WAYWARD REPUBLICANS MR. CLINTON WILL OF COURSE MAKE CONCESSIONS MOST IMPORTANT IN TWO WEEKS HE WILL GIVE A NATIONALLY TELEVISED STATE OF THE UNION ADDRESS THAT WILL NO DOUBT BE DEVOTED TO ADVERTISING HIS PLAN'S GLORIES AND REMINDING HIS AUDIENCE HOW SUPPOSEDLY PERILOUS THEIR OWN HEALTH SECURITY REMAINS INDEED EVER MORE FEAR MONGERING SHOULD BE EXPECTED A WHITE HOUSE OFFICIAL WAS QUOTED LAST WEEK SAYING WE NEED TO RETURN TO THE CRISIS ATMOSPHERE THE NEXT ONE HUNDRED DAYS ARE THUS CRITICAL FOR OPPONENTS OF THE PLAN THE RISK IS THAT THE PRESIDENT WILL RECAPTURE THE HIGH GROUND ON HEALTH CARE LEAVING THEM MERELY TO COMPLAIN ABOUT FLAWED FINANCING AND CUMBERSOME BUREAUCRACY BUT THE OPPORTUNITY ALSO EXISTS TO WRENCH THE DEBATE FROM THE PRESIDENT BY REDEFINING BOTH WHAT IS AT STAKE AND HOW REFORM SHOULD PROCEED FIRST OPPONENTS MUST INSISTENTLY SHOW THAT THE CLINTON PLAN IS DAMAGING TO THE QUALITY OF AMERICAN MEDICINE AND TO THE RELATIONSHIP BETWEEN PATIENT AND DOCTOR SECOND THEY MUST AGGRESSIVELY DEBUNK THE ADMINISTRATION'S CRISIS RHETORIC WHICH IN ANY CASE IS MERELY A JUSTIFICATION FOR ITS RADICAL REFORMS EVEN THE DEMOCRATIC CHAIRMAN OF THE SENATE FINANCE COMMITTEE SENATOR DANIEL PATRICK MOYNIHAN ACKNOWLEDGED OVER THE WEEKEND THAT WE DON'T HAVE A HEALTH CARE CRISIS IN THIS COUNTRY REPUBLICANS SHOULD HAVE THE COURAGE TO SEND THE SAME MESSAGE HAVING SHOWN THAT THE CLINTON PLAN IS RADICALLY DANGEROUS AND FUNDAMENTALLY UNNECESSARY REPUBLICANS SHOULD ACT WITH DISPATCH TO ADVANCE A MEANINGFUL REFORM ALTERNATIVE NOT A COMPETING PLAN BUT A SET OF PROPOSALS TARGETED AT THE SPECIFIC AND LIMITED PROBLEMS THAT ARE OF GREATEST CONCERN TO MOST AMERICANS THE CHIEF VIRTUE OF SMALL SCALE FOCUSED REFORMS IS THAT MANY OF THEM ALREADY ENJOY STATED SUPPORT FROM LARGE NUMBERS OF REPUBLICAN AND DEMOCRATIC LAWMAKERS INDEED AN INCREMENTAL APPROACH TO HEALTH CARE REFORM WAS ADVOCATED AS RECENTLY AS NINETEEN NINETY TWO BY NOW TREASURY SECRETARY LLOYD BENTSEN WHOSE SENATE FINANCE COMMITTEE REPORTED OUT ONE SET OF PROPOSALS AT THE TIME SENATOR GEORGE MITCHELL D. MAINE APPARENTLY RECOGNIZING THAT SUCH A PLAN WOULD ROB THE DEMOCRATIC PARTY OF A KEY ELECTION YEAR ISSUE STOPPED IT FROM COMING TO A FLOOR VOTE TO BLOCK SUCH MEASURES NOW HOWEVER WOULD BE TO STAND IN THE WAY OF REFORMS THAT MOST AMERICANS WOULD WELCOME SUCH A POSITION ON THE PART OF DEMOCRATS WOULD IN TURN UNDERMINE THE ALREADY THIN RATIONALE FOR THE PRESIDENT'S ELABORATE NETWORK OF REGULATION AND PRICE CONTROLS IN SUM OPPONENTS OF THE CLINTON HEALTH PLAN SHOULD IMMEDIATELY PROPOSE SIMPLE FEDERAL LEGISLATION THAT FIXES THE MOST SERIOUS PROBLEMS IN AMERICAN HEALTH CARE AND FORCE THE PRESIDENT TO EXPLAIN WHY HE SAYS NO TO IT REFORM INSURANCE MARKETS TO MAKE HEALTH INSURANCE STABLE AND PORTABLE MINOR CHANGES TO EXISTING COBRA LEGISLATION WOULD ALLOW CURRENTLY INSURED WORKERS WHATEVER THE NUMBER OF EMPLOYEES AT THEIR COMPANY TO CONTINUE THEIR HEALTH COVERAGE EVEN AFTER THEY LEAVE THEIR JOBS BY PAYING PREMIUMS DIRECTLY TO THE INSURER THIS REFORM WOULD GUARANTEE ACCESS TO UNINTERRUPTED HEALTH COVERAGE TO ALL AMERICANS WHO ARE NOW DEPENDENT ON THEIR EMPLOYER FOR INSURANCE ADDITIONAL SMALL REFORMS COULD EXTEND THE SAME GUARANTEE TO INDIVIDUALS ONCE COVERED AS DEPENDENTS A WOMAN WHO SEPARATES FROM HER SPOUSE FOR EXAMPLE LIMIT PRE EXISTING CONDITION RESTRICTIONS UNDER EMPLOYER HEALTH PLANS IF CONGRESS ADOPTS MEASURES TO ASSURE EVERYONE ALREADY IN THE HEALTH INSURANCE SYSTEM THAT HIS OR HER COVERAGE CANNOT BE DENIED IN THE FUTURE EVEN WITH A CHANGE OF JOBS OR A MOVE THE WIDESPREAD FEAR OF BEING DROPPED OR TURNED DOWN BY AN INSURANCE PLAN BECAUSE OF A SEVERE ILLNESS WILL EVAPORATE THESE PROVISIONS COULD ALSO GUARANTEE THAT INDIVIDUALS WITH A PRE EXISTING CONDITION WHO HAVE HEALTH INSURANCE BUT HAVE TO CHANGE INSURANCE CARRIERS WOULD BE CHARGED NO MORE FOR THEIR NEW PLAN THAN THE NORMAL PREMIUM RATE CHARGED TO ALL NEW CUSTOMERS ELIMINATE BARRIERS TO SMALL BUSINESS INSURANCE POOLS ACCORDING TO A STUDY BY THE EMPLOYEE BENEFIT RESEARCH INSTITUTE TWENTY PERCENT TO THIRTY PERCENT OF EMPLOYEES AT FIRMS THAT EMPLOY FEWER THAN ONE HUNDRED PEOPLE ARE WITHOUT HEALTH INSURANCE IF EXISTING REGULATORY BARRIERS INVOLVING GEOGRAPHICAL PROXIMITY AND COMMON BUSINESS PRACTICE REQUIREMENTS WERE ELIMINATED MORE BUSINESS GROUPS COULD PURCHASE HEALTH INSURANCE COLLECTIVELY THROUGH POOLS OR TAX EXEMPT TRUSTS INCREASING THEIR BARGAINING POWER AND DRAMATICALLY REDUCING THEIR COSTS LOWER INSURANCE PREMIUMS BY MAKING THEM TAX DEDUCTIBLE TODAY PEOPLE WHO RECEIVE HEALTH COVERAGE THROUGH THEIR EMPLOYERS ARE NOT SUBJECT TO TAXATION ON THOSE BENEFITS BY CONTRAST THE SELF EMPLOYED WHO PURCHASE THEIR OWN INSURANCE ARE GIVEN ONLY A TWENTY FIVE PERCENT TAX DEDUCTION MAKING HEALTH INSURANCE FULLY DEDUCTIBLE FOR BOTH THE SELF EMPLOYED AND WORKERS WHOSE EMPLOYERS DO NOT PROVIDE IT WILL LOWER THE PRICE OF HEALTH CARE INSURANCE AND MAKE IT MORE ACCESSIBLE PERMIT THE ESTABLISHMENT OF MEDICAL SAVINGS ACCOUNTS CURRENT TAX LAW PERMITS EMPLOYEES TO SET ASIDE INCOME IN A TAX EXEMPT ACCOUNT TO BE USED FOR MEDICAL EXPENSES A SLIGHT CHANGE TO THE TAX CODE ALLOWING SUCH ACCOUNTS TO ROLL OVER WOULD EFFECTIVELY PERMIT THE ESTABLISHMENT OF MEDICAL SAVINGS ACCOUNTS FURTHER SMALL CHANGES WOULD PERMIT THE SELF EMPLOYED TO HAVE THEIR OWN QUOTE MEDICAL I. R. A.S QUOTE IF SUCH ACCOUNTS WERE USED IN CONCERT WITH LOWERPREMIUM CATASTROPHIC INSURANCE PLANS INDIVIDUALS WOULD HAVE MORE CONTROL OVER THEIR HEALTH CARE SPENDING AND COSTS WOULD COME DOWN REDUCE COSTS THROUGH MALPRACTICE REFORM MEDICAL MALPRACTICE INSURANCE IS AMONG THE FASTEST GROWING COMPONENTS OF A PHYSICIAN'S BUSINESS COSTS PROPOSALS TO ALTER THIS PERVERSE ASPECT OF TORT LAW ARE A COMMON COMPONENT OF SEVERAL CURRENT AND PAST HEALTH CARE REFORM PLANS SIMPLIFY HEALTH CARE PAPERWORK THROUGH ADMINISTRATIVE REFORMS THE BURDEN OF HEALTH CARE ADMINISTRATION COULD BE EASED BY THE CREATION OF A STANDARD CLAIMS FORM AND DATA SET A HOST OF OTHER STEPS TO REDUCE HEALTH CARE FRAUD AND IMPROVE INFORMATION COLLECTION HAVE ALREADY BEEN PROPOSED IN CONGRESS THE COST SAVINGS OF ALL THESE MEASURES WOULD BE SUBSTANTIAL REDUCE MEDICAID AND MEDICARE EXPENSES BY LIFTING THE REGULATORY BURDEN ON STATES REPUBLICAN GOVERNORS IN CALIFORNIA WISCONSIN MASSACHUSETTS AND ELSEWHERE HAVE ALREADY BEGUN TO REFORM HEALTH CARE BY ENACTING SOME OF THE MEASURES LISTED ABOVE AT THE STATE LEVEL FEDERAL REGULATIONS ON STATE MEDICAID AND MEDICARE PROGRAMS SHOULD BE STEEPLY ROLLED BACK TO GIVE GOVERNORS THE FLEXIBILITY TO SUPERVISE THEM AS THEY SEE FIT PROVIDE HEALTH INSURANCE TAX CREDITS OR VOUCHERS TO LOW INCOME FAMILIES FOR THOSE WORKING HEADS OF HOUSEHOLDS WHO ARE NOT POOR ENOUGH TO QUALIFY FOR MEDICAID BUT STILL FIND THE COST OF AN INSURANCE PLAN BEYOND THEIR REACH A GOVERNMENT VOUCHER OR TAX CREDIT SYSTEM COULD HELP DEFRAY THE COST OF ADEQUATE COVERAGE THIS PROPOSAL IS NOT WITHOUT SOME EXPENSE BUT MUCH OF IT COULD BE FINANCED BY REDIRECTING FEDERAL PAYMENTS ALREADY MADE TO STATES FOR HOSPITAL COSTS INCURRED THROUGH THE TREATMENT OF LOW INCOME INDIVIDUALS WHATEVER FORM IT TAKES A TAX CREDIT OR VOUCHER SYSTEM WOULD INCREASE ACCESS TO HEALTH INSURANCE FOR LOW INCOME AMERICANS WITHOUT A VAST SYSTEM OF EMPLOYER MANDATES PRICE CONTROLS GOVERNMENT RATIONING AND MANDATORY ALLIANCES THERE ARE OTHER POSSIBLE REFORMS OF COURSE BUT THESE AT LEAST POINT IN THE RIGHT DIRECTION TO REPEAT THE PRESIDENT'S PLAN WOULD HAVE A SERIOUSLY DETRIMENTAL EFFECT ON THE QUALITY OF AMERICAN MEDICAL CARE AND THE PRESIDENT'S PLAN IS UNNECESSARY THERE IS NO HEALTH CARE CRISIS AND THE REFORMS SUGGESTED ABOVE SHOW HOW REAL PROBLEMS CAN BE DIRECTLY ADDRESSED THAT IS THE MOST EFFECTIVE ARGUMENT THAT OPPONENTS OF THE CLINTON PLAN CAN MAKE IN THE OPENING MONTHS OF NINETEEN NINETY FOUR MR. KRISTOL IS CHAIRMAN OF THE PROJECT FOR THE REPUBLICAN FUTURE THIS ARTICLE IS ADAPTED FROM ITS HEALTH CARE STRATEGY MEMORANDUM RELEASED THIS WEEK SUGAR AND ARTIFICIAL SWEETENERS HAVE NO EFFECT ON YOUNG CHILDREN'S BEHAVIOR OR THINKING ACCORDING TO A RIGOROUS STUDY PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE THE NEW STUDY FUNDED IN PART BY THE FEDERAL GOVERNMENT IS EXPECTED TO DRAW MUCH ATTENTION BECAUSE RESEARCHERS DOCTORS AND PARENTS HAVE ARGUED FOR YEARS OVER CLAIMS THAT CERTAIN CHILDREN CAN BE ADVERSELY AFFECTED BY CONSUMING FOODS CONTAINING SUGAR OR THE ARTIFICIAL SWEETENER ASPARTAME THE DEBATE HAS FLARED UNABATED DESPITE SEVERAL RECENT STUDIES THAT FAILED TO LINK SUGAR USE AND HYPERACTIVITY IN YOUNG CHILDREN THE RESEARCH CONDUCTED BY MEDICAL INVESTIGATORS AT VANDERBILT UNIVERSITY IN NASHVILLE TENNESSEE AND THE UNIVERSITY OF IOWA COLLEGE OF MEDICINE IN IOWA CITY WASN'T DESIGNED TO ADDRESS TRANSIENT INCREASES IN ENERGY LEVELS OR IRRITABILITY THAT MAY RESULT SOON AFTER CHILDREN EAT AN ICE CREAM CONE OR CHOCOLATE CAKE INSTEAD THE STUDY CLOSELY MONITORED A GROUP OF FORTY EIGHT CHILDREN DURING A NINE WEEK PERIOD TO MEASURE WHETHER THEY BEHAVED OR PERFORMED MENTAL TASKS DIFFERENTLY DEPENDING ON WHETHER THEY ATE FOOD WITH OR WITHOUT SUGAR OR ASPARTAME THE RESULTS WERE RESOUNDINGLY DEFINITIVE QUOTE EVEN WHEN INTAKE EXCEEDS TYPICAL DIETARY LEVELS NEITHER DIETARY SUCROSE NOR ASPARTAME AFFECTS CHILDREN'S BEHAVIOR OR COGNITIVE FUNCTION QUOTE SAID THE REPORT WHICH WAS HEADED BY MARK L. WOLRAICH OF VANDERBILT'S CHILD DEVELOPMENT CENTER IN THE STUDY THE RESEARCHERS RECRUITED THE FAMILIES OF TWENTY FIVE PRESCHOOL CHILDREN AGED THREE TO FIVE WHO AGREED TO ADHERE RIGIDLY TO SPECIFIC DIETS FOR THEIR CHILDREN DURING THE NINE WEEK PERIOD AT THE BEGINNING OF EACH WEEK THE FAMILIES WERE PROVIDED WITH SPECIALLY DESIGNED FOODS AND DRINKS FOR THREE WEEKS AT A TIME THE CHILDREN ATE A DIET CONTAINING SUGAR ASPARTAME OR SUGAR FREE SACCHARIN THOUGH THE PARENTS AND THE RESEARCHERS DIDN'T KNOW WHICH DIET THE CHILDREN WERE CONSUMING NONE OF THE CHILDREN IN THIS GROUP WERE DESCRIBED BY THEIR PARENTS AS BEING ESPECIALLY SENSITIVE TO THE EFFECTS OF SUGAR THE RESEARCHERS ALSO RECRUITED A SEPARATE GROUP OF TWENTY THREE CHILDREN AGED SIX TO TEN WHOSE FAMILIES DID BELIEVE SUGAR AFFECTED THEIR CHILDREN'S ACTIONS ABILITY TO CONCENTRATE OR PERFORM MENTAL ACTIVITIES BOTH SETS OF CHILDREN UNDERWENT EXTENSIVE TESTS FOR MENTAL PERFORMANCE AND BEHAVIOR WITH EVALUATIONS CONDUCTED ONCE A WEEK AT THE CHILDREN'S HOMES IN ALMOST EVERY CATEGORY THE CHILDREN'S CUMULATIVE RESULTS VARIED LITTLE NO MATTER WHAT THEIR DIET INDEED THE ONLY STATISTICALLY SIGNIFICANT DIFFERENCE OCCURRED AMONG THE PRESCHOOL AGE CHILDREN WHO ACTUALLY PERFORMED BETTER IN COGNITIVE TESTS CONDUCTED BY THEIR PARENTS DURING THE WEEKS THEY CONSUMED A DIET CONTAINING SUGAR THAN THEY DID DURING THE THREE WEEKS WHEN THEIR DIET CONTAINED ASPARTAME OR SACCHARIN DOCTOR WOLRAICH WHO TREATS AND STUDIES CHILDREN DIAGNOSED AS BEING HYPERACTIVE SAID PARENTS WHO BELIEVE SUGAR CAUSES PROBLEMS FOR THEIR CHILDREN SHOULD INVESTIGATE OTHER POSSIBLE CAUSES INSTEAD HE SAID THE CHILDREN'S PROBLEMS MIGHT RESULT FROM GENETIC FACTORS FROM PROBLEMS IN SCHOOL OR WITH THEIR PEERS ISSUES AT HOME OR ANY NUMBER OF A BROAD RANGE OF THINGS THE RESEARCH RECEIVED TEN PERCENT OF ITS FUNDING FROM THE NUTRITION FOUNDATION INTERNATIONAL LIFE SCIENCE INSTITUTE OF WASHINGTON WHICH REPRESENTS THE INTERESTS OF VARIOUS FOOD COMPANIES DOCTOR WOLRAICH SAID THE INSTITUTE'S GRANT HAD NO EFFECT ON THE STUDY'S DESIGN OR OUTCOME WHICH WAS LARGELY FUNDED AND OVERSEEN BY THE NATIONAL INSTITUTE OF CHILD HEALTH AND HUMAN DEVELOPMENT IN BETHESDA MARYLAND IN A COMMENTARY ACCOMPANYING THE STUDY MARCEL KINSBOURNE A RESEARCHER AT TUFTS UNIVERSITY OUTSIDE BOSTON PRAISED THE NEW RESEARCH'S DESIGN DOCTOR KINSBOURNE NOTED THAT WHILE PREVIOUS REPORTS HAVE DISCOUNTED THE EFFECT OF SUGAR ON CHILDREN'S BEHAVIOR MANY PARENTS TEACHERS AND DOCTORS CONTINUE TO ATTRIBUTE PROBLEMS TO SUGAR OR OTHER FOOD ADDITIVES DOCTOR KINSBOURNE SAID THAT TAKEN TOGETHER THE RESEARCH SUGGESTS THAT ANY ADVERSE EFFECT OF SUGAR IS BY NO MEANS AS SEVERE OR PREVALENT AS UNCONTROLLED OBSERVATIONS AND OPINION WOULD SUGGEST SPECIFICALLY THERE IS NO EVIDENCE THAT SUGAR ALONE CAN TURN A CHILD WITH NORMAL ATTENTION INTO A HYPERACTIVE CHILD CONTINUED COLD WEATHER IN THE U. S. AND BULLISH DATA ON FUEL SUPPLIES LED THE RALLY IN WORLD OIL MARKETS INTO A SECOND DAY FUEL PRICES SURGED AGAIN IN FUTURES TRADING IN BOTH NEW YORK AND LONDON IN THE WAKE OF THE AMERICAN PETROLEUM INSTITUTE'S LATEST WEEKLY REPORT ON U. S. OIL INVENTORIES THE A. P. I. REPORT ISSUED TUESDAY AFTER THE CLOSE OF TRADING SHOWED A DROP OF SEVEN POINT FOUR MILLION BARRELS LAST WEEK IN U. S. INVENTORIES OF DISTILLATE FUELS DISTILLATES INCLUDE HOME HEATING OIL AND PRICES OF THAT FUEL ROSE SHARPLY YESTERDAY IN HEAVY TRADING THAT HELPED TO FIRM UP MARKETS FOR OTHER FUELS AND FOR CRUDE OIL ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FOR MARCH DELIVERY WHICH HAD JUMPED MORE THAN TWO CENTS A GALLON TUESDAY GAINED ONE POINT SEVEN FIVE CENTS A GALLON TO SETTLE AT FIFTY THREE POINT FIVE EIGHT CENTS ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE FUTURES PRICES OF GAS OIL HEATING OIL CLOSED AS MUCH AS FOUR DOLLARS AND SEVENTY FIVE CENTS A TON HIGHER ALAN H. LEVINE AN OIL ECONOMIST AND OIL TRADER WITH SMITH BARNEY SHEARSON HAD TOLD HIS CLIENTS AFTER THE LATE TUESDAY A. P. I. REPORT THAT SUPPLIES OF DISTILLATES WERE TIGHT AND THAT HIGHER HEATING OIL PRICES WERE LIKELY POSSIBLY RISING AS HIGH AS FIFTY FOUR CENTS A GALLON YESTERDAY'S HIGH IN INTRADAY TRADING WAS FIFTY THREE POINT EIGHT CENTS STILL MR. LEVINE SAID QUOTE I WAS SOMEWHAT SURPRISED BY THE VELOCITY OF THE HEATING OIL MOVE QUOTE SOME OF HEATING OIL'S STRENGTH CONTINUED TO SPILL OVER INTO OTHER PETROLEUM MARKETS ALTHOUGH CRUDE OIL FOR MARCH DELIVERY FAILED TO MATCH ITS TUESDAY RUN UP OF SEVENTY THREE CENTS A BARREL IT BROKE THROUGH THE PSYCHOLOGICALLY IMPORTANT LEVEL OF SIXTEEN DOLLARS A BARREL IN EARLY TRADING YESTERDAY THE MARCH CRUDE SETTLED AT SIXTEEN DOLLARS AND FOUR CENTS UP TWELVE CENTS FOR THE DAY THAT WAS THE FIRST TIME THE NEAR MONTH FUTURES CONTRACT HAD SETTLED ABOVE SIXTEEN DOLLARS SINCE LATE NOVEMBER JUST BEFORE THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES DECIDED NOT TO CUT OUTPUT TO TRIM THE WORLD OIL GLUT BUT HAS THE WEATHER RELATED RALLY BROUGHT ONLY A TEMPORARY RESPITE OR AN END TO THE BEARISH SENTIMENT THAT DROVE WORLD OIL PRICES TO THE NEAR COLLAPSE OF RECENT MONTHS THERE IS DEBATE AMONG TRADERS ANALYSTS AND OIL ECONOMISTS OVER THE ANSWER MR. LEVINE OF SMITH BARNEY SHEARSON LOOKS FOR A PRICING PULLBACK ONCE THE WEATHER THAWS BUT EDWARD KRAPELS PRESIDENT OF ENERGY SECURITY ANALYSIS ESTIMATED THAT THE COLD WEATHER ALREADY HAS HAD AN IMPACT OF AS MUCH AS FIVE HUNDRED THOUSAND TO SIX HUNDRED THOUSAND BARRELS A DAY ON THE PREVIOUS SURPLUS OF WORLD SUPPLIES EXCEPT FOR POSSIBLY A LITTLE WEAKNESS AFTER THE NEXT WEEK OR SO THE WORST IS OVER FOR THE OIL MARKETS MR. KRAPELS SAID I DON'T THINK OPEC WILL HAVE TO CUT OUTPUT WHEN IT MEETS IN MARCH COTTON COTTON FUTURES PRICES FELL AFTER SETTING NEW CONTRACT HIGHS FOR FOURTEEN OF THE PAST FIFTEEN TRADING SESSIONS AT NEW YORK'S COTTON EXCHANGE COTTON FOR MARCH DELIVERY WAS DOWN ONE POINT SIX NINE CENTS TO SEVENTY FIVE POINT SIX FIVE CENTS A POUND THIS IS NOTHING MORE THAN A CORRECTION AFTER THE EXPLOSIVE UP MOVE THAT WE'VE HAD SAID SANDRA KAUL SENIOR ANALYST FOR SMITH BARNEY SHEARSON THROUGHOUT THIS MOVE THE U. S. HAS REMAINED COMPETITIVELY PRICED WITH OTHER WORLD GROVES COTTON PRICES HAVE RISEN BECAUSE GLOBAL SUPPLIES OF HIGH QUALITY COTTON ARE EXTREMELY LIMITED THE U. S. IS ONE OF THE FEW TRADITIONAL SUPPLIERS OF COTTON THAT STILL HAS HIGH QUALITY STOCKS TO OFFER AND COTTON PRICES OVERSEAS HAVE BEEN RISING FASTER THAN U. S. PRICES THUS MS. KAUL SAID SHE EXPECTS THE MARKET TO RESUME ITS UPWARD TREND AS SOON AS FABRIC COMPANIES AND OTHER CONSUMERS BEGIN TO BUY U. S. COTTON GRAINS AND SOYBEANS PRICES OF WHEAT FUTURES CONTRACTS ROSE AMID CONTINUING SPECULATION THAT CHINA IS INTERESTED IN BUYING EIGHTEEN POINT FOUR MILLION BUSHELS OF SUBSIDIZED U. S. WHEAT IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY ROSE FOUR POINT FIVE CENTS A BUSHEL TO SETTLE AT THREE POINT SEVEN FOUR SEVEN FIVE DOLLARS A BUSHEL SOYBEAN PRICES SLIPPED AS BENEFICIAL RAIN IN BRAZIL AND ARGENTINA INCREASED THE PROSPECTS FOR A BUMPER SOYBEAN CROP IN SOUTH AMERICA YIELDS ON TAXABLE MONEY MARKET FUNDS EDGED LOWER AND ASSETS FELL IN THE WEEK ENDED TUESDAY I. B. C. SLASH DONOGHUE'S AVERAGE SEVEN DAY COMPOUND YIELD ON TAXABLE FUNDS EASED TO TWO POINT SEVEN ONE PERCENT FROM TWO POINT SEVEN TWO PERCENT ACCORDING TO MONEY FUND REPORT AN ASHLAND MASSACHUSETTS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVEN DAY SIMPLE YIELD ON TAXABLE FUNDS WAS UNCHANGED AT TWO POINT SIX EIGHT PERCENT WHILE THE THIRTY DAY SIMPLE YIELD SLID TO TWO POINT SIX NINE PERCENT FROM TWO POINT SEVEN ONE PERCENT THE THIRTY DAY COMPOUND YIELD EDGED DOWN TO TWO POINT SEVEN THREE PERCENT FROM TWO POINT SEVEN FOUR PERCENT ASSETS OF THE SIX HUNDRED THIRTY SEVEN TAXABLE FUNDS SURVEYED PLUNGED ELEVEN POINT EIGHT THREE BILLION DOLLARS TO FOUR HUNDRED EIGHTY SIX POINT FOUR THREE BILLION DOLLARS THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR ALMOST ALL OF THE OUTFLOW AS THEY WITHDREW ELEVEN POINT ONE THREE BILLION DOLLARS WHILE INDIVIDUAL INVESTORS TOOK OUT THE REMAINING SIX HUNDRED NINETY EIGHT POINT NINE MILLION DOLLARS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE OUTFLOW TO FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S WARNING ON MONDAY THAT SHORT TERM INTEREST RATES WOULD RISE FOR INSTITUTIONAL INVESTORS YIELDS ON NINETY DAY TREASURY BILLS AND OTHER SHORT TERM SECURITIES ARE ALREADY MORE ATTRACTIVE THAN MONEY MARKET YIELDS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORT TERM CORPORATE I. O. U.S AND TREASURY BILLS WAS LENGTHENED BY ONE DAY TO SIXTY ONE DAYS THE AVERAGE TAX EXEMPT SEVEN DAY COMPOUND YIELD ROSE TO ONE POINT EIGHT SIX PERCENT FROM ONE POINT SEVEN SEVEN PERCENT IN THE LATEST WEEK THE LATEST TAX FREE YIELD IS EQUIVALENT TO A TAXABLE TWO POINT NINE ONE PERCENT FOR SOMEONE PAYING THIRTY SIX PERCENT IN TAXES AND TO THREE POINT OH EIGHT PERCENT FOR THOSE PAYING THIRTY NINE POINT SIX PERCENT ASSETS OF THE THREE HUNDRED FORTY TWO TAX EXEMPT FUNDS SURVEYED TWO MORE THAN THE PREVIOUS WEEK TOTALED ONE HUNDRED NINE POINT FOUR OH BILLION DOLLARS ACCORDING TO THE NEWSLETTER THE TAX FREE FUNDS' AVERAGE PORTFOLIO MATURITY WAS SHORTENED BY ONE DAY TO FIFTY SEVEN DAYS MONEY FUND REPORT IS PUBLISHED BY I. B. C. SLASH DONOGHUE INCORPORATED A SUBSIDIARY OF I. B. C. U. S. A. PUBLICATIONS INCORPORATED WALGREEN COMPANY SAID SALES DURING JANUARY AT STORES OPEN MORE THAN ONE YEAR CLIMBED SIX POINT ONE PERCENT FROM JANUARY NINETEEN NINETY THREE WALGREEN WHICH OPERATED ONE THOUSAND EIGHT HUNDRED NINETY SEVEN DRUGSTORES IN JANUARY COMPARED WITH ONE THOUSAND SEVEN HUNDRED SIXTY SIX UNITS A YEAR EARLIER SAID TOTAL SALES CLIMBED TWELVE PERCENT TO SEVEN HUNDRED FORTY FIVE POINT FOUR MILLION DOLLARS FROM SIX HUNDRED SIXTY THREE POINT FIVE MILLION DOLLARS JOHN J. SCHORNACK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF KRAFTSEAL CORPORATION WAS ELECTED A DIRECTOR OF THIS MAKER OF SPRAY FINISHING AND COATING APPLICATION EQUIPMENT HE SUCCEEDS J. MILTON MOON WHO DIED LAST NOVEMBER AS BANKERS HELD INCONCLUSIVE TALKS ABOUT ITS FATE EURO DISNEY S. C. A. REPORTED THAT ITS NET LOSS FOR THE FISCAL FIRST QUARTER WIDENED BY THIRTY ONE PERCENT TO FIVE HUNDRED FIFTY THREE MILLION FRANCS NINETY FOUR MILLION DOLLARS OVER THE YEAR EARLIER QUARTER BUT IN A SIGN THAT A NEW MANAGEMENT STRATEGY IS STARTING TO BRING RESULTS THE TROUBLED THEME PARK OUTSIDE PARIS SUCCEEDED IN PRUNING ITS BLOATED COSTS AS A RESULT ITS OPERATING LOSS WAS UNCHANGED EVEN THOUGH REVENUE FELL TWELVE PERCENT AFTER THE PARK SLASHED ITS ADMISSION CHARGE AND OTHER PRICES IN A BID TO ATTRACT MORE VISITORS THE WIDER NET LOSS LARGELY REFLECTS HIGHER INTEREST EXPENSES THE RESULTS QUOTE SHOW SOME ENCOURAGING SIGNS QUOTE SAID CHARLES ALLEN AN ANALYST AT BROKERS NATWEST SELLIER IN LONDON IT'S MORE HEALTHY BUT IT'S STILL NOT HEALTHY ENOUGH EURO DISNEY WHICH IS FORTY NINE PERCENT OWNED BY WALT DISNEY COMPANY STILL FACES A SURVIVAL THREATENING PROBLEM RELATING TO ITS DEBT OF ABOUT TWENTY ONE BILLION FRANCS INTEREST PAYMENTS ON THE DEBT ARE CURRENTLY FAR BEYOND THE RESORT'S FINANCIAL MEANS AND WALT DISNEY HAS SAID IT WILL CONTINUE FUNDING THE SHORTFALL ONLY UNTIL THE END OF MARCH AT A TEN HOUR MEETING IN PARIS YESTERDAY IN A PAVILION NEAR THE PLACE DE LA CONCORDE REPRESENTATIVES OF EURO DISNEY'S SIXTY CREDITOR BANKS DISCUSSED THE RESORT'S PERILOUS FINANCIAL SITUATION WITHOUT REACHING ANY CONCLUSIONS BANKERS ATTENDING THE MEETING SAID AUDITORS K. P. M. G. PEAT MARWICK MADE A PRELIMINARY PRESENTATION DETAILING THE PARK'S SITUATION AND ITS POSSIBLE FUTURE DEVELOPMENT BUT IT WASN'T ABLE TO PRODUCE A FULL AUDIT OF EURO DISNEY AS HAD BEEN EXPECTED AND THE BANKERS ARE DUE TO RECONVENE IN MID FEBRUARY TO RECEIVE A MORE COMPLETE REPORT BANKERS AND ANALYSTS BELIEVE EURO DISNEY'S DEBT MUST BE CUT BY AT LEAST FIFTY PERCENT TO ENSURE THE RESORT'S LONG TERM VIABILITY WALT DISNEY ITSELF PRESENTED A BUSINESS PLAN TO CREDITORS LAST OCTOBER THAT CALLS FOR THE DEBT TO BE CUT BY ABOUT ELEVEN BILLION FRANCS MORE THAN HALF OF WHICH WOULD BE THROUGH AN INJECTION OF FRESH CAPITAL ACCORDING TO SEVERAL BANKERS PRESENT AT YESTERDAY'S CREDITORS' MEETING K. P. M. G.'S INITIAL FINDINGS LARGELY MESH WITH DISNEY'S OWN CALCULATIONS THERE WAS NO BOMBSHELL SAID ONE BRITISH BANKER PRESENT WITH BOTH SIDES APPARENTLY SHARING A SIMILAR ANALYSIS OF THE PROBLEMS THE KEY ISSUE REMAINING TO BE RESOLVED IS WHO WILL PAY HOW MUCH TO BAIL OUT EURO DISNEY THE BANKS ARE INSISTING THAT WALT DISNEY TAKE A DISPROPORTIONATE SHARE OF THE RESTRUCTURING BURDEN EVEN THOUGH THE U. S. COMPANY IS LEGALLY ONLY A MINORITY SHAREHOLDER THE BANKS' REASONING IS THAT THE PARK IS A WALT DISNEY CREATION AND RESPONSIBILITY EVEN IF THE U. S. COMPANY MANAGED TO SHIELD ITSELF THROUGH A COMPLEX FINANCIAL AND LEGAL STRUCTURE WITH TIME FOR A RESTRUCTURING RUNNING OUT SOME CREDITORS ARE UNHAPPY AT THE SLOW PACE OF THE TALKS AND CRITICAL OF THE LEAD FRENCH BANKS INVOLVED BANQUE NATIONALE DE PARIS AND BANQUE INDOSUEZ ONE JAPANESE BANKER EMERGING FROM THE MEETING SAID HE WAS DISAPPOINTED THAT THE LEAD BANKS WEREN'T ABLE TO PROVIDE MORE DETAILED ANSWERS AT THE MEETING A BRIEF COMMUNIQUE ISSUED AT THE END OF THE TALKS SAID THAT A STEERING COMMITTEE OF SOME OF THE MAIN BANKS HAD ASKED FOR A MANDATE TO OPEN DISCUSSIONS WITH WALT DISNEY AND EURO DISNEY ON A RESTRUCTURING BUT ODDLY THE STATEMENT DIDN'T SAY WHETHER THE MEETING HAD AGREED TO DO SO THE BANKERS ALSO DISCUSSED EURO DISNEY'S RESULTS FOR THE FISCAL FIRST PERIOD ENDED DECEMBER THIRTY FIRST NINETEEN NINETY THREE THE COMPANY SAID OPERATING EARNINGS FELL TO EIGHT HUNDRED TWENTY EIGHT MILLION FRANCS FROM NINE HUNDRED FORTY FOUR MILLION FRANCS REFLECTING THE PRODUCT REPOSITIONING AND PRICING INITIATIVES TAKEN BY THE EURO DISNEY MANAGEMENT IN ADDITION TO LOWER ADMISSION CHARGES FOR OFF PEAK SEASONS HOTEL AND RESTAURANT PRICES AT THE PARK HAVE BEEN REDUCED AND SOME STAFF HAVE BEEN LAID OFF COMPANY OFFICIALS SAID ATTENDANCE AT THE PARK WAS STABLE ALTHOUGH THEY DIDN'T GIVE DETAILS THE NET LOSS OF FIVE HUNDRED FIFTY THREE MILLION FRANCS COMPARES WITH A LOSS OF FOUR HUNDRED TWENTY THREE MILLION FRANCS FOR THE YEAR EARLIER PERIOD ON THE PARIS STOCK MARKET EURO DISNEY CLOSED AT THIRTY SIX POINT TWO OH FRANCS YESTERDAY DOWN FROM THIRTY SEVEN POINT SEVEN FIVE FRANCS E. W. SCRIPPS COMPANY AGREED TO ACQUIRE ONE OF THE COUNTRY'S LARGEST INDEPENDENT PRODUCERS OF CABLE TELEVISION PROGRAMMING AS IT SEEKS TO BECOME A KEY PROVIDER OF ENTERTAINMENT SERVICES SCRIPPS WHICH OWNS SIGNIFICANT NEWSPAPER AND CABLE OPERATIONS SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO ACQUIRE CLOSELY HELD BAGWELL COMMUNICATIONS SLASH CINETEL PRODUCTIONS FROM ITS FOUNDER AND CHAIRMAN ROSS K. BAGWELL SENIOR TERMS WEREN'T DISCLOSED BUT THE EVENTUAL ACQUISITION PRICE IS EXPECTED TO BE BETWEEN FIFTEEN DOLLARS AND TWENTY MILLION DOLLARS DESPITE THE RELATIVELY SMALL SIZE OF THE ACQUISITION THE MOVE BOLSTERS SCRIPPS'S EFFORTS IN RECENT MONTHS TO DIVERSIFY BEYOND NEWSPAPERS INTO NONPRINT INFORMATION AND ENTERTAINMENT SERVICES LAST SUMMER SCRIPPS ANNOUNCED PLANS TO SIGN ON EIGHT MILLION SUBSCRIBERS FOR ITS TWENTY FOUR HOUR HOME AND GARDEN TELEVISION NETWORK CABLE CHANNEL TO BE LAUNCHED THIS YEAR IT ALSO ESTABLISHED A HOLLYWOOD PRODUCTION COMPANY SCRIPPS HOWARD PRODUCTIONS TO MAKE T. V. MOVIES AND MINISERIES QUOTE THIS IS A MAJOR STATEMENT THAT OUR FUTURE IS IN THE OWNERSHIP PRODUCTION AND SALES OF INFORMATION AND ENTERTAINMENT QUOTE SAID KEN LOWE PRESIDENT OF THE HOME AND GARDEN TELEVISION NETWORK IN AN INTERVIEW BUT HE ADDED WE'RE NOT MOVING AWAY FROM PRINT SCRIPPS SAID THE BAGWELL SLASH CINETEL FACILITY IN KNOXVILLE TENNESSEE WILL BECOME THE MAIN PRODUCTION CENTER FOR THE HOME AND GARDEN NETWORK AND ELIMINATE THE NEED FOR THE COMPANY TO BUILD AS PREVIOUSLY PLANNED A SEPARATE PRODUCTION FACILITY THE CINETEL OPERATIONS PRODUCED NETWORK SERIES AND PRIME TIME SPECIALS FOR THE NASHVILLE NETWORK ARTS AND ENTERTAINMENT THE DISCOVERY CHANNEL NICKELODEON AND OTHER CABLE NETWORKS IN NINETEEN NINETY THREE SIMILAR PRODUCTION IS EXPECTED TO CONTINUE THE WIRE IN THE ATLANTA OLYMPIC COMMITTEE'S HIGH WIRE ACT HAS JUST GOTTEN HIGHER BUT OFFICIALS HERE SAY THEY STILL AREN'T WORRIED ABOUT FALLING OFF IN THEIR ANNUAL FINANCIAL FORECAST OLYMPICS OFFICIALS YESTERDAY SAID THEY NO LONGER PLAN TO HAVE A SURPLUS AT THE END OF THE NINETEEN NINETY SIX SUMMER GAMES HERE A YEAR AGO THE PROJECTED SURPLUS WAS SIXTEEN MILLION DOLLARS MOREOVER A CONTINGENCY FUND THAT WAS BUDGETED AT ONE HUNDRED MILLION DOLLARS LAST YEAR HAS BEEN REDUCED IN THE NEW BUDGET TO SIXTY MILLION DOLLARS YESTERDAY'S FORECAST DETAILING PROJECTED REVENUE AND EXPENDITURES SHOWS THAT THE SIZE OF THE PIES THEMSELVES ARE LITTLE CHANGED IT WILL STILL COST CLOSE TO ONE POINT SIX BILLION DOLLARS TO STAGE THE GAMES BUT THE MARGIN FOR ERROR HAS ALL BUT VANISHED THE FORECAST AS WELL AS THE SHRINKING SIZE OF THE OLYMPIC COMMITTEE'S SAFETY NET IS CRITICAL TO A NUMBER OF CONSTITUENCIES THE LOCAL ORGANIZING COMMITTEE IS A PRIVATE NONPROFIT GROUP THAT HAS PLEDGED TO STAGE THE GAMES WITHOUT USING ANY PUBLIC MONEY THE SHEER SIZE OF THE UNDERTAKING HOWEVER INCLUDING A HEFTY FIVE HUNDRED SIXTEEN POINT SIX MILLION DOLLARS IN PLANNED CONSTRUCTION COSTS HAS RAISED QUESTIONS AMONG SOME GOVERNMENT OFFICIALS INTERNATIONAL SPORTS FEDERATIONS AND OTHERS ABOUT WHETHER THE COMMITTEE MIGHT END UP IN THE RED OR BE FORCED TO SCALE BACK SOME OF ITS AMBITIOUS PLANS THE ANSWER TO BOTH THOSE QUESTIONS ACCORDING TO A. D. FRAZIER JUNIOR CHIEF OPERATING OFFICER FOR ATLANTA'S OLYMPIC COMMITTEE IS QUOTE NO QUOTE MR. FRAZIER WHO DESCRIBES THE COMMITTEE'S FINANCES AS RIGHT ON TRACK SAYS FURTHER THE TAXPAYER CAN REST EASY ABOUT SPENDING MONEY TO PUT ON THE OLYMPICS MOREOVER HE SAYS NO SIGNIFICANT CHANGES HAVE BEEN MADE IN PLANS FOR ANY SPORTS FACILITIES OR ATHLETIC EVENTS WHILE ACKNOWLEDGING THAT THERE IS STILL SOME RISK MR. FRAZIER DESCRIBES HIMSELF AS BEING MORE COMFORTABLE WITH THESE STATISTICS THAN EVER BEFORE THE SIZE OF THE CONTINGENCY HE SAYS IS LESS IMPORTANT TODAY THAN IT WAS EVEN A YEAR AGO BECAUSE OLYMPIC OFFICIALS NOW HAVE MORE PRECISE ESTIMATES FOR THE COST OF SAY TRAINING FEEDING AND OUTFITTING VOLUNTEERS ABOUT FOUR MILLION DOLLARS LESS THAN ORIGINALLY PLANNED MOREOVER LARGE SOURCES OF REVENUE THAT WERE STILL QUESTION MARKS A YEAR AGO SUCH AS THE SALE OF U. S. TELEVISION RIGHTS WHICH WENT TO THE NATIONAL BROADCASTING COMPANY LAST JULY FOR FOUR HUNDRED FIFTY SIX MILLION DOLLARS ARE NOW ACCOUNTED FOR WITH REGARD TO THE SURPLUS NOW ELIMINATED MR. FRAZIER SAYS SIMPLY THAT WE WEREN'T SETTING OUT TO CREATE A POT OF CASH AT THE END OF THE GAMES WHILE THAT MAY BE TECHNICALLY TRUE OLYMPIC OFFICIALS HAVE BECOME VICTIMS OF THEIR OWN RHETORIC WHEN IT COMES TO EXCESS CASH IN THE LATE NINETEEN EIGHTIES WHEN THE CITY WAS CAMPAIGNING TO WIN THE GAMES AND IN THE EARLY NINETEEN NINETIES ONCE THAT PRIZE WAS AWARDED LOCAL OLYMPIC OFFICIALS TALKED OF A SURPLUS OF ONE HUNDRED FIFTY MILLION DOLLARS OR MORE NO LONGER RAISING MONEY FROM PRIVATE SOURCES PROVED MORE DIFFICULT THAN IMAGINED AND SOME EXPENSES FOR SECURITY AND TECHNOLOGY FOR EXAMPLE HAVE GONE UP INDEED THE BIGGEST CHANGE IN THE BUDGET RELEASED YESTERDAY CAME IN THE BROAD AREA OF OPERATIONS WHERE PROJECTED EXPENDITURES CLIMBED TO FOUR HUNDRED FIVE POINT FOUR MILLION DOLLARS FROM THREE HUNDRED THIRTY FIVE POINT FOUR MILLION DOLLARS A YEAR AGO AN INCREASE OF TWENTY PERCENT THAT CATEGORY WHICH INCLUDES EXPENSES FOR SECURITY AND EQUIPMENT AT VARIOUS ATHLETIC SITES HAS BEEN AFFECTED BY DECISIONS TO ADD SEVERAL SPORTS TO THE GAMES INCLUDING BEACH VOLLEYBALL AND MOUNTAIN BIKING AND TO MOVE THE LOCATION OF SEVERAL OTHERS INCLUDING ROWING AND CANOEING THE CHANGES HAVE PUMPED UP COSTS FOR SECURITY AND LOGISTICS IN PREVIOUS OLYMPICS SOME CITIES MOST NOTABLY MONTREAL IN NINETEEN SEVENTY SIX HAVE BEEN PLAGUED BY ENORMOUS COST OVERRUNS IN CONSTRUCTION AS OLYMPIC CONSTRUCTION QUICKENS IN ATLANTA THIS YEAR THERE IS SOME CONCERN THAT SIMILAR PROBLEMS WILL OCCUR BUT MR. FRAZIER SAYS OLYMPIC OFFICIALS ARE LEAVING A FAIR AMOUNT OF BREATHING ROOM IN THEIR AGREEMENTS WITH CONTRACTORS DESIGNERS AND BUILDERS WE'RE NOT PINNED TO A LOT OF ABSOLUTES MR. FRAZIER SAYS IF NEED BE WE'LL SCALE BACK THE SCOPE OF SOME OF THE WORK BUT THAT HASN'T HAPPENED SO FAR AND I DON'T EXPECT IT TO HAPPEN QUOTE INDEED THE PUBLIC PANEL THAT OVERSEES THE ATLANTA OLYMPIC COMMITTEE THE METROPOLITAN ATLANTA OLYMPIC GAMES AUTHORITY YESTERDAY AUTHORIZED OLYMPIC OFFICIALS TO CONTINUE WITH CONSTRUCTION OF A TWO HUNDRED NINE MILLION DOLLAR OLYMPIC STADIUM THE PLANNED CENTERPIECE OF THE GAMES IN ALL OLYMPIC OFFICIALS SAY THEY HAVE COMMITMENTS FOR ABOUT HALF THE MONEY THEY NEED TO STAGE THE SIXTEEN DAY EVENT A GOOD CHUNK OF THE REMAINDER WILL COME FROM TICKET SALES A PROJECTED TWO HUNDRED SIXTY ONE POINT TWO MILLION DOLLARS AS WELL AS FROM ADDITIONAL SALES OF T. V. RIGHTS OVERSEAS AND FROM ADDITIONAL SPONSORSHIP AGREEMENTS WE'RE STEAMING AHEAD SAYS MR. FRAZIER PROJECTED REVENUE NOW EQUAL PROJECTED EXPENDITURES FOR THE NINETEEN NINETY SIX SUMMER GAMES ELIMINATING PLANS FOR A SURPLUS AND REDUCING A PLANNED CONTINGENCY TO SIXTY MILLION DOLLARS FROM ONE HUNDRED MILLION DOLLARS THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND ONE HALF PERCENT HIGH THREE PERCENT LOW THREE AND ONE QUARTER PERCENT NEAR CLOSING BID THREE AND THREE EIGHTHS PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT ONE OH PERCENT THIRTY TO EIGHTY NINE DAYS THREE POINT ONE FIVE PERCENT NINETY TO ONE HUNDRED FIFTY NINE DAYS THREE POINT TWO THREE PERCENT ONE HUNDRED SIXTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO SEVEN PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT THREE SEVEN PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE FIVE PERCENT THIRTY DAYS THREE POINT ONE SEVEN PERCENT SIXTY DAYS THREE POINT TWO OH PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE THREE PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT FIVE EIGHT PERCENT THREE MONTHS TWO POINT SEVEN FOUR PERCENT SIX MONTHS THREE POINT ONE OH PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT ONE TWO PERCENT ONE MONTH THREE POINT ONE EIGHT PERCENT THREE MONTHS THREE POINT THREE FIVE PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH NINE PERCENT THIRTY DAYS THREE POINT ONE THREE PERCENT SIXTY DAYS THREE POINT ONE SIX PERCENT NINETY DAYS THREE POINT TWO OH PERCENT ONE HUNDRED TWENTY DAYS THREE POINT TWO SIX PERCENT ONE HUNDRED FIFTY DAYS THREE POINT THREE ONE PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT TWO MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT THREE MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT FOUR MONTHS THREE AND SEVEN SIXTEENTHS PERCENT THREE AND FIVE SIXTEENTHS PERCENT FIVE MONTHS THREE AND ONE HALF PERCENT THREE AND THREE EIGHTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND THREE SIXTEENTHS PERCENT ONE MONTH THREE AND FIVE SIXTEENTHS PERCENT THREE MONTHS THREE AND ONE HALF PERCENT SIX MONTHS THREE AND THIRTEEN SIXTEENTHS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT SIX PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY THIRTY FIRST NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE NINE PERCENT THIRTEEN WEEKS THREE POINT ONE SIX PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT NINE TWO PERCENT SIXTY DAYS SIX POINT NINE EIGHT PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT SEVEN PERCENT SIXTY DAYS SIX POINT NINE SEVEN PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN TWO PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS CAPITAL CITIES SLASH A. B. C. INCORPORATED LOOKING TO EXPAND ITS IN HOUSE PRODUCTION CAPABILITY IS SETTING UP A JOINT VENTURE WITH BRILLSTEIN GREY ENTERTAINMENT AN INDEPENDENT PRODUCER WITH STRONG TIES TO THE STAND UP COMEDY CIRCUIT CAPITAL CITIES SLASH A. B. C. WILL FINANCE THE VENTURE WHICH WILL HAVE AN INITIAL CAPITALIZATION OF ABOUT ONE HUNDRED MILLION DOLLARS ACCORDING TO AN EXECUTIVE FAMILIAR WITH THE DEAL BRILLSTEIN GREY WILL RUN THE DAY TO DAY OPERATIONS OF THE NEW COMPANY WHICH WILL BE BASED IN LOS ANGELES AND WILL HIRE A PRESIDENT AND STAFF OF ABOUT THIRTY THE VENTURE WILL BE CHARGED WITH DEVELOPING MOSTLY HALF HOUR SERIES FOR THE A. B. C. TELEVISION NETWORK BUT WILL ALSO DEVELOP PROGAMMING FOR PAY PER VIEW VIDEOCASSETTES RADIO AND INTERACTIVE TELEVISION CAPITAL CITIES WILL HAVE INITIAL RIGHTS TO ANY PROJECTS BUT THE NEW COMPANY MAY SELL TO OTHER OUTLETS AS WELL QUOTE AS WE MOVE FORWARD INTO THIS MORE COMPLEX TECHNOLOGICAL WORLD THE NEED TO OWN PRODUCT AND SOFTWARE BECOMES EVEN MORE CRITICAL QUOTE SAID ROBERT IGER PRESIDENT OF THE A. B. C. TELEVISION NETWORK GROUP BRILLSTEIN GREY HE SAID HAS AN INCREDIBLE TRACK RECORD OF DISCOVERING TALENT AMONG THE PROJECTS BRILLSTEIN GREY HAS PRODUCED OR PACKAGED ARE THE LARRY SANDERS SHOW AND DEF COMEDY JAM FOR TIME WARNER INCORPORATED'S H. B. O. AS WELL AS THE MOVIE WAYNE'S WORLD BRILLSTEIN GREY'S MOTION PICTURE DIVISION AND TALENT MANAGEMENT BUSINESS WILL NOT BE PART OF THE NEW COMPANY THE COMPANY REPRESENTS ABOUT ONE HUNDRED TWENTY FIVE PEOPLE INCLUDING COMEDIANS GARRY SHANDLING DANA CARVEY AND MIKE MYERS ACTORS NICOLAS CAGE AND BRAD PITT AND SATURDAY NIGHT LIVE EXECUTIVE PRODUCER LORNE MICHAELS BRAD GREY ONE OF THE PRINCIPALS IN BRILLSTEIN GREY SAID THE COMPANY WILL BEGIN OPERATIONS IN THE LATE SPRING ONCE THE CURRENT NETWORK TELEVISION DEVELOPMENT SEASON IS COMPLETED HE SAID THE COMPANY IS IN TALKS WITH SONY CORPORATION'S COLUMBIA PICTURES TELEVISION TO HANDLE DOMESTIC SYNDICATION OF ANY SUCCESSFUL SERIES ST. PAUL COMPANIES JOHN DASBURG PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NORTHWEST AIRLINES WAS ELECTED A DIRECTOR OF THIS INSURANCE CONCERN THERE ARE NOW FOURTEEN MEMBERS ON THE BOARD IN A SETBACK FOR GENERAL MOTORS CORPORATION A FRANKFURT DISTRICT COURT REJECTED G. M.'S PLEA THAT VOLKSWAGEN A. G. SHOULD TEMPORARILY SUSPEND SEVEN MANAGERS IT HIRED AWAY FROM THE U. S. AUTO MAKER LAST MARCH HOWEVER THE DECISION IN THIS CIVIL CASE HAS ABSOLUTELY NO INFLUENCE ON THE CENTRAL DEBATE BETWEEN THE TWO COMPANIES G. M.'S ALLEGATIONS THAT FORMER PURCHASING CZAR J. IGNACIO LOPEZ DE ARRIORTUA AND HIS COLLEAGUES ABSCONDED WITH A HOARD OF SENSITIVE G. M. DOCUMENTS WHEN HE DEFECTED TO V. W. THE HIRING AWAY OF A WHOLE TEAM OF G. M. MANAGERS BY V. W. CONSTITUTED A FURTHER SYSTEMATIC ATTEMPT TO UNFAIRLY DAMAGE A COMPETITOR G. M. MAINTAINED BUT THE FRANKFURT COURT RULED THAT QUOTE DESPITE REMAINING DOUBTS QUOTE IT COULDN'T BE PROVED THAT UNFAIR COMPETITION PRACTICES PLAYED A ROLE IN THE SEVEN MEN FOLLOWING MR. LOPEZ TO V. W. BECAUSE OF MR. LOPEZ'S PERSONAL DYNAMISM AND THE CLOSE TEAM SPIRIT AMONG HIS SUBORDINATES IT COULDN'T BE RULED OUT THAT THE MEN FOLLOWED HIM ON THEIR OWN INITIATIVE THE COURT SAID V. W. CAN CONTINUE TO EMPLOY THE SEVEN MEN AND G. M. MUST BEAR EIGHTY PERCENT OF THE COURT COSTS THE COURT RULED THE GERMAN CAR MAKER SEIZED ON THE RULING AS A TRIUMPH CONFIRMING ITS INNOCENCE NOT ONLY IN THE LABOR POACHING DISPUTE BUT ALSO MORE BROADLY IN CONNECTION WITH THE ALLEGATIONS SURROUNDING MR. LOPEZ NO CRIMINAL CHARGES FOR INDUSTRIAL ESPIONAGE HAVE BEEN FILED AND V. W. HAS AT ALL TIMES DENIED WRONGDOING BUT PUBLIC PROSECUTORS IN BOTH THE U. S. AND GERMANY HAVE BEEN INVESTIGATING THE CASE FOR MONTHS THE DISTRICT COURT HAS UNAMBIGUOUSLY ESTABLISHED THAT THERE WERE NO UNFAIR COMPETITION PRACTICES OF ANY KIND IN CONNECTION WITH THE SWITCH OF THE FORMER G. M. SLASH OPEL EMPLOYEES TO V. W. THE GERMAN CAR MAKER SAID THAT RESPONSE ANGERED G. M. THE STATEMENT BY VOLKSWAGEN A. G. ABOUT THE FRANKFURT DISTRICT COURT ADDRESSING THE ISSUE OF INDUSTRIAL ESPIONAGE IN ITS RULING IS FACTUALLY INACCURATE ADAM OPEL A. G. G. M.'S GERMAN SUBSIDIARY SAID IN A STATEMENT OPEL CHAIRMAN DAVID HERMAN STRESSED THAT THE LABOR POACHING DISPUTE WAS A LEGAL SIDESHOW SEPARATE FROM THE MORE IMPORTANT MATTER OF THE CRIMINAL INVESTIGATIONS G. M. SAID IT HASN'T DECIDED WHETHER TO APPEAL THE RULING ITALY'S CONSUMER PRICE INDEX WAS UP ZERO POINT SIX PERCENT IN JANUARY FROM DECEMBER AND UP FOUR POINT TWO PERCENT FROM A YEAR EARLIER THE STATE STATISTICAL INSTITUTE ISTAT REPORTED ISTAT SAID THE RISE IN JANUARY FROM DECEMBER WAS LARGELY A RESULT OF AN INCREASE IN ELECTRICITY TRANSPORT AND COMMUNICATION COSTS AND HOUSING COSTS PRESIDENT LEONID KRAVCHUK SAID HE IS CONFIDENT THAT UKRAINE WILL SURVIVE ITS CURRENT TROUBLES AND BEGIN THE ECONOMIC REBUILDING THAT IT SO DESPERATELY NEEDS EVEN THE PROBLEM POSED BY LAST SUNDAY'S ELECTION OF YURI MESHKOV AS PRESIDENT OF CRIMEA AN AUTONOMOUS REPUBLIC IN UKRAINE CAN BE SETTLED WITHOUT CONFLICT MR. KRAVCHUK SAID IN AN INTERVIEW MR. MESHKOV VOWS TO SECEDE FROM UKRAINE AND JOIN RUSSIA BUT ANY MOVE BY CRIMEAN PRESIDENT MESHKOV TO JOIN RUSSIA WOULD BE STRONGLY RESISTED MR. KRAVCHUK SAID QUOTE THE PRESIDENT OF CRIMEA IS NOT THE HEAD OF A NATION QUOTE HE SAID WHILE CRIMEA COULD CREATE ITS OWN ECONOMIC PROGRAM AND TRADE TIES MR. KRAVCHUK SAID IT WOULD PROBABLY DECIDE ON ITS OWN THAT SECESSION ISN'T REALISTIC ANY DISCUSSION ABOUT CRIMEAN INDEPENDENCE WOULD BEGIN WITH ISSUES SUCH AS THE BILLIONS OF DOLLARS THAT THE COUNTRY WOULD HAVE TO PAY FOR WATER SUPPLIES AND ENERGY RESOURCES MOST OF WHICH COME FROM UKRAINE HE ALREADY HAS HAD A PHONE CONVERSATION WITH MR. MESHKOV AND WILL BE MEETING WITH HIM IN THE NEXT FEW DAYS HE ADDED MR. KRAVCHUK FEELS SURE THAT MR. MESHKOV WILL NOW END HIS MORE EXTREME CAMPAIGN RHETORIC HE SAID A PERSON CHANGES RIGHT AWAY UNDER THE BURDEN OF POWER EITHER IN A BETTER OR WORSE WAY I EXPECT THIS WILL BE IN A BETTER WAY FOR UKRAINE THERE HAVE BEEN MANY SETBACKS AND UNCERTAINTIES IN TRYING TO ESTABLISH ITSELF AS A SELF SUPPORTING COUNTRY FOLLOWING ITS SPLIT FROM THE FORMER SOVIET UNION MANY UKRAINIANS SAY THAT MR. KRAVCHUK HIMSELF IS PART OF THE NATION'S PROBLEM AND THAT HE IS NOW NEAR THE END OF HIS LONG POLITICAL CAREER THE SIXTY YEAR OLD FORMER COMMUNIST PARTY IDEOLOGY CHIEF WAS PARLIAMENTARY SPEAKER BEFORE THE COUNTRY'S INDEPENDENCE AND THEN WON THE PRESIDENCY IN THE COUNTRY'S FIRST ELECTIONS IN DECEMBER NINETEEN NINETY ONE HE SAID HE HASN'T DECIDED WHETHER HE WILL BE A CANDIDATE IN PRESIDENTIAL ELECTIONS WHICH HE AGREED TO SCHEDULE IN JUNE PARLIAMENTARY ELECTIONS WILL BE ON MARCH TWENTY SEVENTH MR. KRAVCHUK WON THE PRAISE OF BILL CLINTON FOR AGREEING LAST MONTH TO THE U. S. RUSSIA UKRAINE UNDERSTANDING HIGHLY CONTROVERSIAL WITH UKRAINE'S PARLIAMENT THAT WILL DISMANTLE SOME ONE THOUSAND EIGHT HUNDRED NUCLEAR WEAPONS IN THE NEXT SEVEN YEARS MR. KRAVCHUK SAID HE EXPECTS BOTH THE U. S. AND RUSSIA TO LIVE UP TO THEIR END OF THE DEAL NAMELY TO HELP UKRAINE ESTABLISH MORE SECURITY AT A TIME WHEN POLITICAL FORCES IN RUSSIA AND IN CRIMEA ARE THREATENING UKRAINE'S EXISTENCE MR. KRAVCHUK SAID THAT SETTLING THE NUCLEAR WEAPONS ISSUE WOULD ALLOW UKRAINE TO MOVE ON TO ITS MOST PRESSING PROBLEM THE COLLAPSING ECONOMY THE OUTGOING PARLIAMENT AGREED ON MONDAY TO AN AUSTERE BUDGET THAT EVERYONE HOPES WILL HELP STOP THE RUNAWAY INFLATION AND MR. KRAVCHUK VOWED THAT UKRAINE WOULD MOVE FORWARD WITH A PLAN TO PRIVATIZE EIGHT THOUSAND COMPANIES THIS YEAR BUT HE BRISTLED AT CRITICISM OF UKRAINE'S PACE OF ECONOMIC CHANGE I'LL TELL YOU VERY OPENLY THIS IRRITATES ME WHEN WESTERN LEADERS TALK ABOUT QUICK REFORMS AND ASK ME WHY THEY AREN'T GOING AHEAD HE SAID HIS VOICE RISING IN ANGER QUOTE I WOULD LIKE FOR THESE MEN TO COME TO THESE ENTERPRISES AND LISTEN TO THOSE PEOPLE AND TO WHAT THEY WILL TELL THEM ABOUT REFORMS AND HOW QUICK THEY ARE SUPPOSED TO GO THAT'S WHY WE ARE TAKING INTO ACCOUNT THE REAL SITUATION SO THERE WILL BE NO SOCIAL EXPLOSION THE CANADIAN GOVERNMENT SAID IT SOLD AT AN AUCTION TWO BILLION CANADIAN DOLLARS ONE POINT FIVE BILLION U. S. DOLLARS OF SIX POINT FIVE PERCENT BONDS DUE JUNE FIRST TWO THOUSAND FOUR AT AN AVERAGE YIELD OF SIX POINT FOUR SEVEN SEVEN PERCENT THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES JACOBS ENGINEERING GROUP INCORPORATED SAID IT WON A CONTRACT FROM A CHEVRON CORPORATION UNIT FOR ENGINEERING DESIGN AND CONSTRUCTION OF A TWO HUNDRED NINETY MILLION DOLLAR MODERNIZATION PROJECT AT CHEVRON'S RICHMOND CALIFORNIA REFINERY THE WORK AT THE SO CALLED FLUID CATALYTIC CRACKING UNIT WILL INCREASE THE CONVERSION OF FEEDSTOCKS TO MORE VALUABLE LIGHT PRODUCTS AND IMPROVE ENERGY EFFICIENCY WHEN IT IS COMPLETED IN LATE NINETEEN NINETY FIVE A SPOKESMAN FOR THE ENGINEERING CONCERN SAID THE VALUE TO JACOBS REPRESENTS SUBSTANTIALLY ALL OF THE TOTAL VALUE OF THE PROJECT IT BRINGS US THE CHANGE OF SEASON NOW TIRED OF FOOTBALL COLD AND RAIN REJOICE SUMMER'S ON ITS WAY AGAIN BEVIS LONGSTRETH SIXTY YEAR OLD PARTNER AT DEBEVOISE AND PLIMPTON OF NEW YORK AND PROFESSOR OF LAW AT COLUMBIA UNIVERSITY SCHOOL OF LAW WAS NAMED TO THE BOARD OF THIS MORTGAGE COMPANY FILLING A VACANCY HOLLYWOOD CASINO CORPORATION SAID IT FORMED A PARTNERSHIP WITH DEVELOPER CHRISTOPHER HEMMETER TO COMPETE FOR A RIVERBOAT GAMING LICENSE IN MICHIGAN CITY INDIANA MR. HEMMETER'S MICHIGAN CITY CASINO AND LODGE INCORPORATED WAS THE FIRST TO APPLY FOR THE LICENSE LAST SEPTEMBER HOLLYWOOD CASINO SAID THE ONE HUNDRED SIXTY ONE MILLION DOLLAR PROPOSAL INCLUDES A RIVERBOAT CASINO RESTAURANTS A HOTEL AND CONVENTION FACILITIES HOLLYWOOD WHICH OWNS AND OPERATES TWO RIVERBOATS IN AURORA ILLINOIS AND THE SANDS HOTEL AND CASINO IN ATLANTIC CITY N. J. WILL BE AN EQUAL PARTNER IN THE INDIANA PROJECT WITH MR. HEMMETER MICHAELS STORES INCORPORATED SAID JANUARY SALES AT STORES OPEN MORE THAN A YEAR INCREASED SIX PERCENT FROM JANUARY NINETEEN NINETY THREE AND TOTAL SALES FOR THE MONTH WERE UP THIRTY TWO PERCENT TO FIFTY SEVEN POINT FOUR MILLION DOLLARS FROM FORTY THREE POINT SIX MILLION DOLLARS SAME STORE SALES FOR BOTH THE FOURTH QUARTER AND THE FISCAL YEAR ENDED JANUARY THIRTIETH INCREASED THREE PERCENT THE ARTS AND CRAFT RETAILER SAID TOTAL SALES FOR THE FOURTH QUARTER WERE UP TWENTY NINE PERCENT TO TWO HUNDRED THIRTY FOUR POINT SEVEN MILLION DOLLARS FROM ONE HUNDRED EIGHTY TWO POINT ONE MILLION DOLLARS AND TOTAL SALES FOR THE YEAR INCREASED TWENTY SIX PERCENT TO SIX HUNDRED NINETEEN POINT SEVEN MILLION DOLLARS FROM FOUR HUNDRED NINETY THREE POINT TWO MILLION DOLLARS ALUMINUM COMPANY ALAIN BELDA FIFTY YEARS OLD WAS NAMED AN EXECUTIVE VICE PRESIDENT OF THIS ALUMINUM PRODUCER HE HAD BEEN A VICE PRESIDENT OF ALCOA AND PRESIDENT LATIN AMERICA AND ALCOA ALUMINIO S. A. ALCOA'S MAJORITY OWNED BRAZILIAN AFFILIATE INTEGRATED HEALTH SERVICES INCORPORATED SAID IT COMPLETED AN AGREEMENT WITH CLOSELY HELD CRESTWOOD HOSPITALS INCORPORATED OF STOCKTON CALIFORNIA TO MANAGE TWENTY THREE LONG TERM CARE AND PSYCHIATRIC FACILITIES IN NORTHERN CALIFORNIA INTEGRATED HEALTH SAID THE PACT GIVES IT THE OPTION TO PURCHASE THE FACILITIES AT THE END OF THE AGREEMENT'S TEN YEAR TERM FINANCIAL TERMS WEREN'T DISCLOSED DESPITE A LACKLUSTER REGIONAL ECONOMY BANK OF BOSTON CORPORATION IS MAKING AN AGGRESSIVE PUSH INTO AN AREA MANY BANKS ARE STILL RELUCTANT TO TREAD NEW BUSINESS LENDING THE BANK WHICH ONLY RECENTLY RECOVERED FROM THE SEVERE SLUMP IN NEW ENGLAND REAL ESTATE INCREASED ITS OVERALL LOAN PORTFOLIO THIRTEEN PERCENT IN NINETEEN NINETY THREE TO TWENTY EIGHT POINT SEVEN EIGHT BILLION DOLLARS THAT FAR OUTPACES THE DOMESTIC LOAN GROWTH OF OTHER U. S. BANKS WHICH AVERAGED A ONE POINT EIGHT PERCENT RISE IN THE YEAR ENDED JUNE THIRTIETH MOREOVER WHILE OTHER BANKS FOCUS ON EXPANDING THEIR CONSUMER LENDING BANK OF BOSTON'S NEW CUSTOMERS ARE PRIMARILY SMALL BUSINESS OWNERS NOT A TRADITIONAL AREA OF STRENGTH FOR THE BANK NEW ENGLAND'S SECOND LARGEST BANK SAYS IT IS BETTING ON A CONTINUED PICKUP IN THE ECONOMY IF THE STRATEGY WORKS THE BANK WILL HAVE CREATED A NEW AND PROFITABLE BUSINESS FOR ITSELF AS SOME SMALLER BORROWERS GROW INTO LARGER CUSTOMERS BUT WITH NEW ENGLAND'S ECONOMY STILL LAGGING BEHIND THE REST OF THE COUNTRY ANALYSTS SAY THE STRATEGY CARRIES SUBSTANTIAL RISK AS ONE SIGN OF THE SLUGGISHNESS EMPLOYMENT IN THE REGION HAS PLUNGED TEN PERCENT TO FIVE POINT NINE MILLION JOBS FROM ITS PEAK IN FEBRUARY NINETEEN EIGHTY NINE WHILE U. S. EMPLOYMENT IS UP ZERO POINT EIGHT SEVEN PERCENT FROM A PEAK IN JUNE NINETEEN NINETY IF THE ALREADY WEAK REGIONAL RECOVERY STALLS BANK OF BOSTON COULD LOSE WHATEVER CHANCE IT HAS TO REGAIN ITS STANDING AS NEW ENGLAND'S LARGEST BANK FLEET FINANCIAL GROUP INCORPORATED OF PROVIDENCE R. I. EARNED THAT DISTINCTION WITH ITS BANK OF NEW ENGLAND TAKEOVER IN NINETEEN NINETY ONE QUOTE FOR THE FIRST TIME IN UMPTEEN YEARS THERE WILL BE SOME SUSTAINED ECONOMIC PICKUP FROM NINETEEN NINETY FOUR TO NINETEEN NINETY SIX QUOTE SAYS CHARLES K. GIFFORD BANK OF BOSTON'S PRESIDENT I BELIEVE THE MARKET HAS TURNED AROUND AS ONE SIGN OF RENEWED CONFIDENCE MR. GIFFORD SAYS THAT MANY BUSINESSES HAVE STOPPED PAYING OFF THEIR DEBT AND ARE NO LONGER AFRAID TO TAKE ON ADDED BORROWING ANALYSTS SAY BANK OF BOSTON IS INCREASING MARKET SHARE BY OFFERING ATTRACTIVE INTEREST RATES AND FLEXIBLE LENDING TERMS THAT COMPETITORS AREN'T MATCHING MOST OF THE BANKS IN THE NORTHEAST ARE HAVING DIFFICULTY GENERATING THE LOAN GROWTH THAT BANK OF BOSTON IS GENERATING SAYS GERARD S. CASSIDY AN ANALYST AT HANCOCK INSTITUTIONAL EQUITY SERVICES THEY BANK OF BOSTON MUST BE OFFERING SOMETHING THAT IS INDUCING PEOPLE TO LEAVE THEIR EXISTING RELATIONSHIPS BUT AS AN OUTSIDER LOOKING IN ONE WOULD HAVE TO SAY THAT BUYING MARKET SHARE IN THIS ENVIRONMENT COULD BACKFIRE SAYS MR. CASSIDY DEPENDING ON HOW THEY STRUCTURED THE LOANS IT COULD COME BACK TO BITE THEM FEDERAL RESERVE GOVERNOR JOHN LAWARE WARNED NEW ENGLAND BANKS AGAINST THE DANGERS OF TOO RAPID EXPANSION IN A SPEECH TO CORPORATE EXECUTIVES IN BOSTON RECENTLY QUOTE PRESSURE ON EARNINGS WILL BE MATERIAL IF BANKS FIX RATES TOO LOW ON LONG TERM ASSETS QUOTE MR. LAWARE SAID BANK OF BOSTON DENIES CUTTING INTEREST RATES OR MAKING RISKY LOANS THERE IS TREMENDOUS COMPETITION FOR MIDDLE MARKET CORPORATE LOANS SAYS MR. GIFFORD WE HAVE TO BE CAREFUL OUR MANAGEMENT DOESN'T LET COMPETITION OUTWEIGH JUDGMENT ON LOANS THE OBVIOUS DANGER IS YOU'LL MAKE BAD LOANS AND YOU'LL DO IT TOO CHEAPLY I'M CONVINCED WE'RE DOING NEITHER THIS INSTITUTION AND ITS SHAREHOLDERS FELT SUCH PAIN IN NINETEEN EIGHTY NINE FROM CREDIT QUALITY CONCERNS THAT WE'RE NOT ABOUT TO GO IN THE SOUP AGAIN LIKE MANY NEW ENGLAND BANKS BANK OF BOSTON WAS HIT HARD BY BAD REAL ESTATE LOANS BEGINNING IN NINETEEN EIGHTY NINE RESULTING IN REGULATORY CONSTRAINTS AND A LOSS OF APPETITE FOR LENDING AFTER TWO YEARS SPENT ON THE MEND THE COMPANY WAS THE FIRST MAJOR NEW ENGLAND BANK TO DECLARE ITSELF OUT OF THE WOODS ITS STRATEGY SINCE HAS BEEN TO PURSUE ACQUISITIONS AND NEW BORROWERS LAST YEAR IT ACQUIRED MULTIBANK FINANCIAL CORPORATION OF DEDHAM MASSACHUSETTS AND SOCIETY FOR SAVINGS BANCORP OF HARTFORD CONNECTICUT OTHER REGIONAL BANKS ARE ALSO MAKING ACQUISITIONS BUT THEIR TACK ON GENERATING INTERNAL GROWTH HASN'T DEPENDED AS MUCH ON LOANS SHAWMUT NATIONAL CORPORATION OF HARTFORD CONNECTICUT HAD FIFTEEN POINT THREE EIGHT BILLION DOLLARS IN LOANS AS OF DECEMBER THIRTY FIRST UP THREE PERCENT FROM THE YEAR AGO PERIOD MUCH OF BANK OF BOSTON'S GAIN IN LOANS HAS COME IN COMMERCIAL LENDING IF INTEREST RATES RISE AS THE ECONOMY QUICKENS COMMERCIAL LENDING AT LOWER RATES COULD BE RISKIER ESPECIALLY IF DEPOSIT COSTS RISE AS OF DECEMBER THIRTY FIRST NINETEEN NINETY THREE BANK OF BOSTON HAD ELEVEN POINT NINE NINE BILLION DOLLARS IN COMMERCIAL AND INDUSTRIAL LOANS COMPARED WITH TEN POINT THREE THREE BILLION DOLLARS A YEAR AGO THE COMMERCIAL LOAN PORTFOLIO WAS BOLSTERED BY THE BANK'S COMMITMENT ANNOUNCED EIGHTEEN MONTHS AGO TO LEND SIX BILLION DOLLARS TO DATE THE BANK HAS COMMITTED ABOUT FIVE BILLION DOLLARS TO ONE THOUSAND TWO HUNDRED NEW ENGLAND COMMERCIAL AND INDUSTRIAL CUSTOMERS OF THE FIVE BILLION DOLLARS LOANS OUTSTANDING ARE ABOUT THREE BILLION DOLLARS IN THE PAST WE'VE BEEN CRITICIZED FOR HAVING LOAN GROWTH DRIVEN BY HUGE LOANS SAYS MR. GIFFORD BANK OF BOSTON IS COUNTING ON SMALL BUSINESS CUSTOMERS TO GENERATE INCOME FROM OTHER BANK PRODUCTS SUCH AS CHECKING AND SAVINGS ACCOUNTS THE PROFIT HAS TO DO WITH THE FACT THAT SMALL BUSINESS CUSTOMERS ARE TYPICALLY LOYAL THEY GENERALLY DO MORE WITH THEIR BANK THAN BORROWING QUOTE SAYS JOHN KAHWATY A SPOKESMAN FOR BANK OF BOSTON DENISE RHONE AND CARRIE JONES APPROACHED BANK OF BOSTON LAST MARCH AFTER FIVE OTHER BANKS REJECTED THEIR REQUEST FOR A FIFTY THOUSAND DOLLAR LOAN FOR THEIR BUSINESS SPARKLE CLEANING ASSOCIATES OF NATICK MASSACHUSETTS BEING A COMMERCIAL CLEANING FIRM WE HAD NO REAL COLLATERAL THAT BANKS WERE INTERESTED IN SAYS MS. RHONE BANK OF BOSTON'S LOAN ENABLED THE COMPANY TO BUY CARPET SHAMPOO MACHINES TRUCKS AND A COMPUTER SPARKLE CLEANING NOW HAS LARGER CORPORATE CONTRACTS AND HAS SEEN REVENUE JUMP TO ABOUT ONE MILLION DOLLARS IN NINETEEN NINETY THREE ITS STAFF HAS GROWN TO SIXTY FIVE FROM TWENTY FIVE OUTSIDE OF NEW ENGLAND BANK OF BOSTON'S COMMERCIAL PORTFOLIO HAS CONTINUED ITS GROWTH IN SPECIALIZED INDUSTRY LENDING TO MEDIA TRANSPORTATION AND ENVIRONMENTAL SERVICES COMPANIES THE BANK ALSO HAS SEEN GROWTH IN ITS INTERNATIONAL LENDING IN ARGENTINA BRAZIL CHILE AND URUGUAY WHICH TOGETHER MADE UP TWENTY PERCENT OF ITS LOAN BUSINESS IN NINETEEN NINETY THREE THE ACQUISITIONS OF MULTIBANK FINANCIAL AND SOCIETY FOR SAVINGS BANCORP CONTRIBUTED AN ADDITIONAL THREE POINT THREE BILLION DOLLARS TO NINETEEN NINETY THREE'S TOTAL LOANS OUTSTANDING THE BANK SAID MR. GIFFORD SAID INTERNAL LOAN GROWTH COMBINED WITH THE RECENT ACQUISITIONS CAUSED THE NINETEEN NINETY THREE DOMESTIC LOAN PORTFOLIO TO GROW MORE THAN TWENTY FIVE PERCENT FROM NINETEEN NINETY TWO INTERNATIONAL LOANS WERE ALSO UP ABOUT TWENTY FIVE PERCENT HE SAID JAMES M. GROUT FORTY NINE YEARS OLD WAS NAMED PRESIDENT OF SHONEY'S RESTAURANT DIVISION MR. GROUT'S PREVIOUS POSITION HAD BEEN EXECUTIVE VICE PRESIDENT FOR FRANCHISING AND DEVELOPMENT FOR THIS RESTAURANT COMPANY HE FILLS A POSITION THAT OPENED UP TEN MONTHS AGO WHEN STEVE SANDERS THE FORMER PRESIDENT LEFT TO BECOME A SHONEY'S FRANCHISEE JAMES W. ARNETT JUNIOR PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT COMPANY HAD ASSUMED MR. SANDERS' DUTIES IN THE INTERIM UNION TEXAS PETROLEUM HOLDINGS INCORPORATED SAID A UNIT SIGNED AN AGREEMENT TO EXPLORE FOR OIL AND GAS IN ALASKA THE OIL AND NATURAL GAS COMPANY SAID ITS UNION TEXAS PETROLEUM ALASKA CORPORATION AND COOK INLET REGION INCORPORATED AN ALASKA NATIVE REGIONAL COMPANY AGREED TO PURSUE A THREE YEAR EXPLORATION PROGRAM ON MORE THAN THREE HUNDRED FORTY THOUSAND ACRES ON THE KENAI PENINSULA IN SOUTH CENTRAL ALASKA ABOUT FIFTY MILES SOUTHWEST OF ANCHORAGE THE UNIT WHICH WILL HAVE A ONE HUNDRED PERCENT WORKING INTEREST WILL CONDUCT THE EXPLORATION PROGRAM IT ALSO WILL HAVE THE OPTION OF ACQUIRING OIL AND GAS LEASES ON THE ACREAGE AND COOK INLET REGION WILL HAVE THE OPTION OF PARTICIPATING IN DRILLING PROGRAMS A SPOKESMAN SAID UNION TEXAS PETROLEUM WOULD COLLECT AND STUDY DATA ON THE ACREAGE IN NINETEEN NINETY FOUR AND NINETEEN NINETY FIVE AND DRILLING MIGHT BEGIN IN NINETEEN NINETY FIVE OR NINETEEN NINETY SIX WRT ENERGY CORPORATION SAID IT COMPLETED A SIXTEEN POINT FIVE MILLION DOLLAR ACQUISITION OF PROVED RESERVES AND OIL FIELD EQUIPMENT IN LOUISIANA THE OIL AND NATURAL GAS COMPANY HAD ANNOUNCED EARLIER THIS MONTH THAT IT WOULD SWAP ONE POINT SEVEN MILLION SHARES OF ITS COMMON STOCK VALUED AT ABOUT EIGHTEEN POINT SIX MILLION DOLLARS FOR WORKING INTERESTS IN THE CAMERON PARISH LOUISIANA PROPERTIES INSTEAD THE COMPANY PAID TEXAS AMERICAN RESOURCES INCORPORATED AND BUCKINGHAM CAPITAL CORPORATION ELEVEN POINT FIVE MILLION DOLLARS IN CASH AND FOUR HUNDRED FIFTY FOUR THOUSAND SHARES OF RESTRICTED COMMON STOCK VALUED AT FIVE MILLION DOLLARS FOR A ONE HUNDRED PERCENT WORKING INTEREST IN THREE THOUSAND FIVE HUNDRED ACRES OF OIL AND GAS LEASES AND FOR TWO DRILLING RIGS AND ASSOCIATED EQUIPMENT VALUED AT TWO POINT FIVE MILLION DOLLARS A COMPANY SPOKESMAN SAID THE ACQUISITION INCREASED THE COMPANY'S PROVED OIL RESERVES TWO HUNDRED NINETY THREE PERCENT TO FIVE POINT FIVE MILLION BARRELS OF OIL FROM ONE POINT FOUR MILLION BARRELS OF OIL AND INCREASED ITS GAS RESERVES FORTY PERCENT TO THIRTEEN POINT SIX BILLION CUBIC FEET FROM NINE POINT SEVEN BILLION CUBIC FEET EXPLORATION COMPANY OF LOUISIANA SAID IT OBTAINED A TWENTY NINE POINT TWO MILLION DOLLAR LOAN FROM INTERNATIONAL NEDERLANDEN U. S. CAPITAL CORPORATION THE OIL AND NATURAL GAS EXPLORATION COMPANY SAID THE NEW LOAN WHICH REQUIRES INTEREST ONLY PAYMENTS FOR EIGHTEEN MONTHS REPLACED A PREVIOUS BANK LOAN MARSDEN W. MILLER JUNIOR CHAIRMAN SAID THAT OBTAINING THE NEW LOAN COMPLETED THE FIRST PHASE OF THE COMPANY'S CAPITAL REORGANIZATION MR. MILLER SAID THIS WILL ALLOW THE COMPANY TO DRILL THREE WELLS OFFSHORE CHINA DURING THE NEXT FIFTEEN MONTHS AND TO CONTINUE DEVELOPING THE BERRY R. COX FIELD IN SOUTH TEXAS BON TON STORES INCORPORATED SAID HARSH WINTER WEATHER CONTRIBUTED TO A SIXTEEN PERCENT DECLINE IN JANUARY SALES AT STORES OPEN MORE THAN ONE YEAR THE CLOTHING RETAILER SAID TOTAL SALES FOR THE FOUR WEEKS ENDED JANUARY TWENTY NINTH FELL EIGHTEEN PERCENT TO TWELVE POINT ONE MILLION DOLLARS SAME STORE SALES FOR THE FULL YEAR EDGED DOWN ZERO POINT FIVE PERCENT WHILE TOTAL SALES EDGED UP ZERO POINT NINE PERCENT TO THREE HUNDRED THIRTY SIX POINT SEVEN MILLION DOLLARS DESPITE THE BAD WEATHER MICHAEL GLEIM SENIOR EXECUTIVE VICE PRESIDENT SAID THE COMPANY REMAINS COMFORTABLE WITH ANALYSTS' EARNINGS ESTIMATES FOR THE YEAR MR. GLEIM SAID THE COMPANY EXPECTS TO EARN SEVENTY SIX CENTS A SHARE BEFORE A FOURTEEN CENT GAIN FROM A CHANGE IN ACCOUNTING FOR THE YEAR ENDED SATURDAY A YEAR EARLIER BONTON STORES HAD NET INCOME OF SEVEN POINT ONE MILLION DOLLARS OR SIXTY FOUR CENTS A SHARE U. S. F. AND G. CORPORATION REPORTED SURPRISINGLY STRONG FOURTH QUARTER EARNINGS SIGNALING THAT ITS RESTRUCTURING IS BEGINNING TO PAY OFF THE RESULTS PROPELLED U. S. F. AND G. STOCK UP ONE DOLLAR AND FIFTY CENTS OR ELEVEN PERCENT TO CLOSE AT FIFTEEN POINT THREE SEVEN FIVE DOLLARS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE ONCE STRUGGLING INSURER HAS REPORTED EIGHT STRAIGHT QUARTERLY PROFITS BUT UNTIL NOW THE COMPANY HAS BEEN SHRINKING INSTEAD OF GROWING CONSIDERABLE SKEPTICISM STILL SURROUNDS THE U. S. F. AND G. TURNAROUND AND WHETHER IT CAN PRODUCE INCREASING PROFITS OVER THE LONG TERM BUT YESTERDAY'S RESULTS MARKED THE FIRST TIME IN THREE YEARS THAT THE COMPANY REPORTED AN INCREASE IN PREMIUMS AFTER ADJUSTING FOR FACTORS THAT EXAGGERATED THE GROWTH PREMIUMS GREW FOUR PERCENT IN THE FOURTH QUARTER COMPARED WITH THE PRIOR YEAR QUOTE I WAS VERY PLEASED QUOTE SAID STEVEN GAVIOS A STOCK ANALYST WITH KIDDER PEABODY AND COMPANY U. S. F. AND G. SAID IT EARNED FIFTY NINE MILLION DOLLARS OR FIFTY FIVE CENTS A SHARE COMPARED WITH PRIOR YEAR RESULTS OF THIRTEEN MILLION DOLLARS OR ONE CENT A SHARE DESPITE THE INCREASE IN PREMIUMS TOTAL REVENUE EDGED DOWN TO SEVEN HUNDRED NINETY NINE MILLION DOLLARS FROM EIGHT HUNDRED TWO MILLION DOLLARS UNDER CHAIRMAN NORMAN BLAKE WHO TOOK OVER THREE YEARS AGO U. S. F. AND G. HAS CUT ITS WORK FORCE BY FORTY EIGHT PERCENT AND CUT COSTS BY THIRTY ONE PERCENT BUT ANALYSTS SAY TRIMMING IS EASY COMPARED WITH TRYING TO INCREASE PROFIT AND REVENUE PARTICULARLY IN THE MARKETS WHERE U. S. F. AND G. SPECIALIZES THE COMPANY IS FOCUSED ON SELLING COMMERCIAL INSURANCE TO SMALL AND MIDSIZED BUSINESSES THEY HAVE MADE THEMSELVES FROM A BELOW AVERAGE COMPANY TO AN AVERAGE ONE SAID NORTHINGTON PARTNERS ANALYST JAMES RAMENDA BUT TO GO FROM A AVERAGE COMPANY TO A GROWING COMPANY WILL BE A REAL CHALLENGE DAN HALE CHIEF FINANCIAL OFFICER FOR U. S. F. AND G. SAID THE COMPANY HAS COMPLETED ITS WITHDRAWALS FROM STATES WHERE WORKERS COMPENSATION AND AUTO INSURANCE LAWS MAKE IT TOUGH TO EARN A PROFIT HE SAID THE COMPANY PLANS TO GROW BY OFFERING SUPERIOR SERVICE TO SMALL BUSINESSES AND BY SELLING SPECIALIZED INSURANCE PROGRAMS TO MIDSIZE BUSINESSES BUSINESSES BEING TARGETED INCLUDE TAVERNS RESTAURANTS MANUFACTURERS AND CONTRACTORS INDUSTRIES WHERE OTHER INSURERS HAVE SUSTAINED DISAPPOINTING RESULTS WILLIAM H. DOUGHERTY RETIRED CHIEF FINANCIAL OFFICER OF KEYCORP ALBANY N. Y. WAS ELECTED A DIRECTOR OF THIS BANKING SOFTWARE SUPPLIER MR. DOUGHERTY SIXTY THREE YEARS OLD SUCCEEDS GREGOR P. PETERSON WHO RETIRED LAST AUGUST FROM THE FIVE MEMBER BOARD ARMCO INCORPORATED REPORTED A LOSS FOR THE FOURTH QUARTER AND THE YEAR PARTLY REFLECTING A COSTLY RESTRUCTURING BUT THE CORE SPECIALTY STEEL BUSINESS SHOWED YEAR TO YEAR GAINS FOR THE FOURTH QUARTER THE PITTSBURGH PRODUCER OF STAINLESS AND ELECTRICAL STEELS POSTED A LOSS OF NINETY EIGHT MILLION DOLLARS OR NINETY NINE CENTS A SHARE THE RESULT INCLUDED A FORTY FIVE MILLION DOLLAR LOSS RELATED TO THE EXPECTED SALE OF ARMCO'S INSURANCE OPERATIONS A TEN MILLION DOLLAR EQUITY LOSS RELATED TO AN ADDITIONAL CAPITAL CONTRIBUTION TO A STEEL JOINT VENTURE EQUITY LOSSES OF NINE POINT NINE MILLION DOLLARS FROM OTHER JOINT VENTURES AND AN EXTRAORDINARY LOSS OF SEVEN POINT THREE MILLION DOLLARS RELATED TO DEBT RETIREMENT THE YEAR AGO LOSS WAS THREE HUNDRED SEVENTY SIX POINT SEVEN MILLION DOLLARS OR THREE DOLLARS AND SIXTY EIGHT CENTS A SHARE INCLUDING SPECIAL CHARGES AND LOSSES FROM JOINT VENTURES AND DISCONTINUED OPERATIONS OF THREE HUNDRED SIXTY TWO POINT FIVE MILLION DOLLARS THE OPERATING LOSS WAS THREE POINT THREE MILLION DOLLARS IN THE LATEST QUARTER WITHOUT INCLUDING SIX POINT NINE MILLION DOLLARS OF ADDITIONAL EXPENSE FOR A POSTRETIREMENT ACCOUNTING CHANGE THE YEAR AGO OPERATING LOSS WAS ONE POINT EIGHT MILLION DOLLARS NOT COUNTING SPECIAL CHARGES OF ONE HUNDRED SIXTY EIGHT POINT NINE MILLION DOLLARS IN THE LATEST QUARTER INCREASED PROFITABILITY OF ARMCO'S CORE SPECIALTY STEEL BUSINESS AND DOUGLAS DYNAMICS WHICH MAKES SNOWPLOWS FOR CERTAIN VEHICLES LARGELY OFFSET ESCALATING CARBON STEEL SCRAP PRICES AT THE EMPIRE DETROIT STEEL BUSINESS AND THE START UP OF A STRETCH MILL THE COMPANY ALSO SAID IT WAS BENEFITING FROM RECORD LEVELS OF CHROME STAINLESS SHIPMENTS TO THE AUTOMOTIVE MARKET ARMCO'S PRESIDENT AND CHIEF EXECUTIVE JAMES F. WILL WHILE STATING HE WAS QUOTE NOT SATISFIED QUOTE WITH OVERALL RESULTS AND THE PERFORMANCE OF SOME UNITS EXPECTS THE COMPANY WILL BENEFIT FROM ITS RESTRUCTURING MOVES CASH FROM DIVESTING NONSTRATEGIC OPERATIONS HAS IMPROVED OUR LIQUIDITY HE SAID WE REFINANCED AND RETIRED OBLIGATIONS SO THAT WE HAVE NO SUBSTANTIAL DEBT DUE UNTIL NINETEEN NINETY NINE THE COMPANY ALSO EXPECTS TO RETURN THE EMPIRE DETROIT BUSINESS TO PROFITABILITY OVERALL SALES FELL TWENTY TWO PERCENT TO THREE HUNDRED SIXTY THREE POINT FIVE MILLION DOLLARS FROM FOUR HUNDRED SIXTY FOUR MILLION DOLLARS SALES FOR THE SPECIALTY FLAT ROLLED STEEL BUSINESS FELL TO TWO HUNDRED TWENTY FIVE MILLION DOLLARS FROM TWO HUNDRED FORTY TWO MILLION DOLLARS LARGELY REFLECTING CHANGES IN PRODUCT MIX ARMCO SAID MR. WILL SAID ORDERS ARE STRONG FOR BOTH STAINLESS AND ELECTRICAL STEEL PRODUCTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ARMCO ROSE TWENTY FIVE CENTS OR THREE POINT NINE PERCENT TO SIX POINT SIX TWO FIVE DOLLARS TAMBRANDS INCORPORATED REPORTED A THIRTY TWO PERCENT DECLINE IN FOURTH QUARTER EARNINGS ON LOWER SALES THAT RESULTED MAINLY FROM FLUCTUATIONS IN TRADE CUSTOMER INVENTORIES IN THE U. S. THE MAKER OF TAMPAX BRAND TAMPONS SAID NET INCOME FOR THE QUARTER FELL TO TWENTY ONE POINT ONE MILLION DOLLARS OR FIFTY FIVE CENTS A SHARE FROM THIRTY ONE POINT ONE MILLION DOLLARS OR EIGHTY CENTS A SHARE A YEAR EARLIER SALES IN THE QUARTER DECLINED ELEVEN PERCENT TO ONE HUNDRED FORTY SIX POINT SEVEN MILLION DOLLARS FROM ONE HUNDRED SIXTY FIVE POINT THREE MILLION DOLLARS THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS POSITIVE TRENDS THAT BEGAN IN THE THIRD QUARTER CONTINUED INTO THE FOURTH QUARTER HOWARD B. WENTZ JUNIOR CHAIRMAN SAID QUOTE I BELIEVE WE HAVE RESOLVED THE DIFFICULTIES OF THE FIRST HALF OF LAST YEAR AND PUT A SOLID FOUNDATION IN PLACE FOR NINETEEN NINETY FOUR AND BEYOND QUOTE HE SAID THE COMPANY'S U. S. MARKET SHARE FOR THE SECOND HALF OF NINETEEN NINETY THREE WHEN TAMBRANDS BEGAN ITS NEW MARKETING STRATEGY WAS MORE THAN A FULL POINT HIGHER THAN IN THE FIRST HALF HE SAID A SPOKESMAN SAID THERE HAS BEEN A SIGNIFICANT DECLINE IN THE AMOUNT OF INVENTORY RETAILERS HAVE ON HAND HE NOTED THAT ALTHOUGH SALES TO THE TRADE OF TAMPAX TAMPONS DECREASED FOURTEEN PERCENT IN THE U. S. IN BOTH DOLLARS AND UNITS FOR THE FOURTH QUARTER UNITS OF TAMPONS PURCHASED BY CONSUMERS ROSE ABOUT ONE POINT FOUR PERCENT FROM THE NINETEEN NINETY THREE FOURTH QUARTER WE EXPECT OUR SALES TO MUCH MORE CLOSELY MATCH CONSUMER PURCHASES IN NINETEEN NINETY FOUR THE SPOKESMAN SAID FOR THE YEAR NET FELL FORTY EIGHT PERCENT TO SIXTY THREE POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND SIXTY FOUR CENTS A SHARE FROM ONE HUNDRED TWENTY ONE POINT FOUR MILLION DOLLARS OR THREE DOLLARS AND SIX CENTS A SHARE SALES DECLINED ELEVEN PERCENT TO SIX HUNDRED ELEVEN POINT FIVE MILLION DOLLARS FROM SIX HUNDRED EIGHTY FOUR POINT ONE MILLION DOLLARS REFLECTING LOWER VOLUMES CAUSED MOSTLY BY THE REDUCTION IN TRADE INVENTORIES WEAKENING OF EUROPEAN CURRENCIES AND THE NINETEEN NINETY TWO DIVESTITURES OF THE MAXITHINS SANITARY PAD BUSINESS IN NORTH AMERICA AND THE PAD AND DIAPER BUSINESSES IN BRAZIL AND MEXICO EARNINGS FOR THE YEAR INCLUDED A ONE TIME CHARGE OF TEN POINT THREE MILLION DOLLARS OR TWENTY SEVEN CENTS A SHARE RELATED TO AN ACCOUNTING CHANGE FOR POST EMPLOYMENT BENEFITS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TAMBRANDS CLOSED AT FORTY THREE POINT ONE TWO FIVE DOLLARS UP TWELVE POINT FIVE CENTS ASTRID CARRIERE A MOTHER OF FIVE YEAR OLD TRIPLETS NEEDED HELP AROUND THE HOUSE AFTER SHE GAVE BIRTH TO HER FOURTH CHILD MATHIEU SO SHE CALLED HER HOME INSURANCE COMPANY HER INSURANCE COMPANY AS PART OF THE OTTAWA WOMAN'S POLICY THE INSURER CANADIAN SURETY COMPANY SENT A HOMEMAKER TO MS. CARRIERE'S HOUSE FREE OF CHARGE THE HOMEMAKER WASHED DIAPERS SCRUBBED FLOORS AND FED THE OLDER KIDS FOR THREE DAYS GIVING THE NEW MOTHER MORE TIME TO RECUPERATE QUOTE IT WAS WONDERFUL WE CAME HOME AND THE WHOLE HOUSE WAS SPOTLESS MS. CARRIERE SAYS THE SERVICE IS PART OF CANADIAN SURETY'S HOME ASSISTANCE PROGRAM BELIEVED TO BE THE FIRST OF ITS KIND IN NORTH AMERICA UNDER THE PROGRAM POLICYHOLDERS ALSO CAN GET BABYSITTERS SENT TO THEIR HOMES IN AN EMERGENCY OR NURSING CARE WHEN RECOMMENDED BY A DOCTOR OTHER COMPANIES ALSO HAVE ADDED FRILLS TO THEIR POLICIES ONE INSURER KEEPS TRADESPEOPLE ON HAND TO GIVE TELEPHONE ADVICE ON SUCH PROBLEMS AS STOPPING A FLOODING TOILET THE OFFBEAT PROGRAMS REFLECT A GROWING TREND BY CANADIAN INSURANCE COMPANIES TO WIN CUSTOMER LOYALTY IN THE OVERCROWDED PROPERTY AND CASUALTY INSURANCE MARKET UNLIKE IN THE U. S. WHERE STATE FARM AND ALLSTATE CORPORATION DOMINATE THE HOME AND AUTO INSURANCE MARKETS THE CANADIAN INDUSTRY IS HIGHLY FRAGMENTED WHICH HAS LED TO STIFF PRICE COMPETITION ADDING TO THE INDUSTRY'S WOES ARE PLANS BY THE COUNTRY'S MAJOR BANKS TO BEGIN SELLING THEIR OWN INSURANCE PRODUCTS FOLLOWING RECENT FINANCIAL DEREGULATION THE BANKS ARE GOING TO COME IN WITH LOW COST WELL TRAINED STAFF AND TOP NOTCH COMPUTERS THE CONVENTIONAL COMPANIES ARE ALL STUDYING HOW TO WITHSTAND THE ONSLAUGHT SAYS TED BELTON AN INDEPENDENT INSURANCE INDUSTRY ANALYST THE LOOMING BATTLE WITH THE BANKS IS EXPECTED TO SPARK WIDESPREAD CONSOLIDATION AMONG CANADA'S TWO HUNDRED TWENTY PROPERTY AND CASUALTY INSURERS WHICH WRITE FOURTEEN BILLION CANADIAN DOLLARS TEN POINT SEVEN BILLION U. S. DOLLARS IN NEW BUSINESS A YEAR IN JANUARY FOR INSTANCE A SUBSIDIARY OF BRITAIN'S ROYAL INSURANCE HOLDINGS P. L. C. ACQUIRED THE CANADIAN PROPERTY AND CASUALTY BUSINESS OF SUN ALLIANCE AND LONDON INSURANCE P. L. C. CONTINUING A STRING OF RECENT MERGERS IN THE INDUSTRY CANADIAN IMPERIAL BANK OF COMMERCE WAS THE FIRST OF THE COUNTRY'S BIG BANKS RECENTLY TO START ITS OWN INSURANCE SUBSIDIARY A KEY ADVANTAGE OVER TRADITIONAL INSURANCE COMPANIES IS THE BANK'S ABILITY TO CAPITALIZE ON CUSTOMER LOYALTY BY PITCHING ITS PRODUCTS DIRECTLY TO ITS LARGE NATIONWIDE CLIENT BASE OBSERVERS SAY CANADA'S INSURERS ARE RESPONDING TO THE NEW COMPETITIVE THREAT BY APPEALING DIRECTLY TO THEIR CUSTOMERS HOPING TO GENERATE LOYALTY OF THEIR OWN CURRENTLY CANADIANS BUY THE BULK OF THEIR HOME AND AUTO INSURANCE THROUGH BROKERS AND THUS KNOW LITTLE ABOUT THE COMPANIES ISSUING THE POLICIES OFTEN NOT EVEN THE FIRMS' NAMES MANY INSURERS ARE TOO SMALL TO SET UP THEIR OWN DIRECT MARKETING TEAMS BUT SOME ARE EXPERIMENTING WITH NEW KINDS OF APPROACHES TO CUSTOMERS SUCH AS CANADIAN SURETY'S HOME ASSISTANCE PROGRAM THERE'S ONLY SO FAR YOU CAN GO TO COMPETE IN SELLING FIRE AND THEFT INSURANCE WE WANT TO SHOW PEOPLE WE'RE ADDING VALUE TO THE POLICY FOR A VERY SMALL EXTRA CHARGE SAYS ROGER LONG VICE PRESIDENT PERSONAL INSURANCE AT CANADIAN SURETY A TORONTO SUBSIDIARY OF ASSURANCES GENERALES DE FRANCE MR. LONG SAYS CANADIAN SURETY ADDED TEN CANADIAN DOLLARS SEVEN U. S. DOLLARS AND SIXTY ONE CENTS A YEAR TO THE PRICE OF ITS POLICIES TO COVER THE COST OF THE HOME ASSISTANCE PROGRAM MS. CARRIERE THE CANADIAN SURETY POLICYHOLDER SAYS SHE WOULD USE THE ASSISTANCE PROGRAM AGAIN IT SHOWS THAT THE COMPANY QUOTE MAY BE MORE SENSITIVE TO THE EVERYDAY NEEDS QUOTE OF ITS CUSTOMERS SHE SAYS HOPING TO WIN SIMILAR LOYALTY FROM THEIR CUSTOMERS OTHER INSURERS ALSO HAVE BEGUN OFFERING SERVICES THAT HAVE LITTLE TO DO WITH INSURANCE ZURICH CANADA A UNIT OF SWITZERLAND'S ZURICH INSURANCE GROUP HAS A TELEPHONE ASSISTANCE LINE TO GIVE ADVICE ON EMERGENCY REPAIRS AROUND THE HOUSE SUCH AS LEAKY PLUMBING IT ALSO REFERS POLICYHOLDERS TO SELECTED AUTO MECHANICS AND HOUSE CONTRACTORS AND GUARANTEES THE WORK ITSELF AND DOMINION OF CANADA GENERAL INSURANCE COMPANY A UNIT OF E. L. FINANCIAL CORPORATION OF TORONTO OFFERS CUSTOMERS DISCOUNTS ON EYEGLASSES AND CONTACT LENSES IT'S GIVING PEOPLE VALUE FOR THEIR INSURANCE DOLLAR WITHOUT HAVING TO WAIT FOR AN ACCIDENT TO HAPPEN SAYS TONY LUPPINO SPOKESMAN AT ZURICH CANADA C. A. E. INCORPORATED THE LARGEST SUPPLIER OF SIMULATORS AND TRAINING SYSTEMS TO THE U. S. MILITARY WROTE DOWN THE VALUE OF ITS C. A. E. LINK MILITARY SIMULATION BUSINESS BY THREE HUNDRED NINETY SIX POINT FIVE MILLION CANADIAN DOLLARS TWO HUNDRED NINETY EIGHT POINT ONE MILLION U. S. DOLLARS OR SIXTY PERCENT C. A. E. SAID THE WRITE DOWN COMES AMID THE COMPANY'S DISAPPOINTMENT THAT U. S. DEFENSE OFFICIALS HAVEN'T EMBRACED TRAINING SIMULATORS AS A CHEAPER SUBSTITUTE FOR TRAINING PILOTS IN REAL AIRCRAFT THE TORONTO COMPANY HAD LONG ESPOUSED THE NOTION THAT CUTBACKS IN DEFENSE SPENDING WOULD LEAD TO GREATER USE OF SIMULATION DEVICES AS A MORE COST EFFECTIVE MEANS OF TRAINING FOR MILITARY CONFLICTS C. A. E. SAID IT ALSO SET ASIDE FROM ITS EARNINGS A THIRTY THREE MILLION CANADIAN DOLLAR PROVISION TO COVER THE COSTS OF FURTHER REDUCTIONS IN OPERATIONS AND STAFF AT C. A. E. LINK WHICH IS BASED IN BINGHAMTON N. Y. QUOTE THE SPEED WITH WHICH THE MILITARY HAS SHIFTED TO TRAINING SIMULATORS HAS BEEN A LOT SLOWER THAN WE EXPECTED PILOTS LIKE TO FLY AIRPLANES THEY DON'T LIKE TO FLY SIMULATORS SAID JOHN CALDWELL C. A. E.'S PRESIDENT AND CHIEF EXECUTIVE OFFICER THE SIMULATION MARKET'S WEAKNESS IS A DIRECT CASUALTY OF DEFENSE CUTBACKS AS APPROPRIATIONS FOR NEW EQUIPMENT ARE DELAYED OR CANCELED THE NEED FOR NEW TRAINING DEVICES TRADITIONALLY THE BREAD AND BUTTER OF SIMULATOR BUILDERS ALSO IS CURTAILED MR. CALDWELL SAID HE EXPECTS C. A. E. LINK'S ORDER BOOK FOR THE REST OF THE DECADE TO COMPRISE MAINLY LOWER VALUE CONTRACTS TO UPGRADE OR MODIFY EXISTING SIMULATORS C. A. E.'S ORDER BACKLOG WAS ONE BILLION CANADIAN DOLLARS AT THE END OF LAST YEAR DOWN FROM ONE POINT FOUR BILLION CANADIAN DOLLARS A YEAR EARLIER MR. CALDWELL DECLINED TO DETAIL WHAT ADDITIONAL CUTBACKS IN OPERATIONS ARE PROPOSED AT C. A. E. LINK SAYING PLANS ARE STILL BEING WORKED OUT C. A. E. IN RECENT YEARS HAS CUT THE SUBSIDIARY'S WORK FORCE BY MORE THAN HALF AND CONSOLIDATED MOST OF THE UNIT'S OPERATIONS AT THE BINGHAMTON HEADQUARTERS ANALYSTS SAID THE WRITE DOWN AT CAELINK WAS TO BE EXPECTED BECAUSE OF WEAKNESS IN THE INDUSTRY DECLINING VOLUMES IN BOTH C. A. E.'S MILITARY AND COMMERCIAL AIRCRAFT SIMULATION BUSINESS HAVE RESULTED IN LOWER REVENUES TO THE COMPANY FOR SEVERAL YEARS C. A. E. SHARES CLOSED YESTERDAY DOWN THIRTY SEVEN POINT FIVE CANADIAN CENTS AT SIX CANADIAN DOLLARS AND FIFTY CENTS ON THE TORONTO STOCK EXCHANGE MR. CALDWELL SAID THE SLOWDOWN AT C. A. E. LINK ADDS GREATER URGENCY TO THE COMPANY'S DRIVE TO DEVELOP NEW BUSINESSES TO BOLSTER REVENUES C. A. E. IS ACTIVELY MARKETING SIMULATION DEVICES IN THE MEDICAL FIELD AND EXPECTS TO ROLL OUT NEW PRODUCTS IN COMING MONTHS HE SAID THE WRITE DOWN AND PROVISIONS RELATED TO C. A. E. LINK WERE RECORDED AGAINST C. A. E.'S EARNINGS FOR ITS FISCAL THIRD QUARTER ENDED DECEMBER THIRTY FIRST AS A RESULT THE COMPANY HAD A LOSS FOR THE QUARTER OF FOUR HUNDRED EIGHTEEN POINT SEVEN MILLION CANADIAN DOLLARS OR THREE CANADIAN DOLLARS AND EIGHTY SIX CENTS A SHARE COMPARED WITH A PROFIT OF TEN POINT NINE MILLION CANADIAN DOLLARS OR TEN CANADIAN CENTS A SHARE A YEAR EARLIER REVENUES WERE UP FOUR PERCENT TO TWO HUNDRED SIXTY THREE POINT NINE MILLION CANADIAN DOLLARS IN THE QUARTER MOTOROLA INCORPORATED PLANS TO ANNOUNCE NEXT MONTH THE FIRST PERSONAL COMMUNICATOR WITH THE BUILT IN ABILITY TO SEND DATA OVER A DIGITAL WIRELESS NETWORK THE COMPANY IS COMPETING WITH APPLE COMPUTER INCORPORATED AMERICAN TELEPHONE AND TELEGRAPH COMPANY SONY CORPORATION AND MANY OTHER COMPUTER AND CONSUMER ELECTRONICS COMPANIES FOR A DOMINANT POSITION IN THE EMERGING MARKET FOR HAND HELD COMMUNICATORS MARKET RESEARCHERS ASSERT THAT MARKET WILL GROW AT ABOUT THE SAME RATE AS OR FASTER THAN CELLULAR PHONES WHICH WERE INTRODUCED TEN YEARS AGO AND NOW HAVE FIFTEEN MILLION USERS IN THE U. S. ROBERT GROWNEY CHIEF OF MOTOROLA'S WIRELESS DATA DIVISION SAID IN AN INTERVIEW THAT THE NEW PRODUCT CALLED THE ENVOY WILL HAVE A BUILT IN MODEM TO SEND DATA BOTH OVER TELEPHONE LINES AND OVER THE ARDIS DATA NETWORK WHICH IS JOINTLY OWNED BY MOTOROLA AND INTERNATIONAL BUSINESS MACHINES CORPORATION ARDIS PROVIDES WIRELESS DATA MESSAGING IN ALL MAJOR METROPOLITAN AREAS MR. GROWNEY SAID THE PRODUCT WOULD BE ANNOUNCED AT A MOBILE COMPUTING CONFERENCE ON MARCH SEVENTH AND SHIPPED EARLY IN THE SECOND HALF OF THE YEAR WIRELESS MESSAGING IS CONSIDERED THE MOST COMPELLING EARLY USE TO WHICH PERSONAL COMMUNICATORS WILL BE PUT QUOTE OUR DEVICE IS GOING TO BE DIFFERENT QUOTE FROM THE MUCH MALIGNED APPLE NEWTON AND A. T. AND T.'S UNSUCCESSFUL EO COMMUNICATOR MR. GROWNEY SAID THE PRODUCT IS SMALL LIGHTWEIGHT DOESN'T USE MUCH IN THE WAY OF BATTERIES AND HAS INTEGRATED WIRELESS COMMUNICATIONS HE SAID MOTOROLA BASED IN SCHAUMBURG ILLINOIS PLANNED TO DEVELOP FUTURE MODELS WITH A WIRELESS MODEM THAT WOULD WORK WITH AN ARDIS RIVAL RAM MOBILE DATA AND WITH EMERGING WIRELESS NETWORKS SUCH AS CELLULAR DIGITAL PACKET DATA WHICH IS BEING PUSHED BY MCCAW CELLULAR COMMUNICATIONS INCORPORATED KIRKLAND WASHINGTON RAM MOBILE IS A JOINT VENTURE BETWEEN BELLSOUTH CORPORATION AND RAM BROADCASTING CORPORATION MR. GROWNEY SAID THE PRICE OF THE ENVOY HASN'T YET BEEN DETERMINED ADDING THAT WE ARE GOING TO HAVE MORE COMMUNICATIONS THAN COMPETITORS BUT I'M VERY SENSITIVE TO MAKING A MARKET THE PRICE IS GOING TO BE ATTRACTIVE SONY PLANS TO LAUNCH A PERSONAL COMMUNICATOR THIS SUMMER THAT CAN COMMUNICATE OVER TELEPHONE LINES BUT WON'T HAVE A BUILT IN WIRELESS MODEM THAT MODEL IS EXPECTED TO BE PRICED AT ABOUT ONE THOUSAND DOLLARS OR SO DESPITE WEAKNESS IN THE MEDICAL SECTOR SMALL COMPANY STOCKS ROSE HIGHER IN TANDEM WITH STRONG BONDS SENDING A KEY INDEX TO ANOTHER RECORD THE RUSSELL TWO THOUSAND INDEX REACHED ITS ELEVENTH RECORD CLOSE THIS YEAR RISING ONE POINT ONE TWO POINTS OR ZERO POINT FOUR TWO PERCENT TO TWO HUNDRED SIXTY SEVEN POINT SIX TWO THE PREVIOUS RECORD OF TWO HUNDRED SIXTY SIX POINT FIVE TWO WAS SET ON MONDAY THE BAROMETER WHICH TRACKS SMALL CAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES HAD MEANDERED BETWEEN POSITIVE AND NEGATIVE TERRITORY EARLY IN THE DAY BUT A STEADY UPWARD MOVE IN BONDS HELPED EQUITIES ACROSS THE BOARD NASDAQ STOCKS PERFORMED WELL WITH THE NASDAQ COMPOSITE INDEX CLIMBING TWO POINT THREE THREE POINTS OR ZERO POINT TWO NINE PERCENT TO SEVEN HUNDRED NINETY NINE POINT FIVE SEVEN JUST SHY OF ITS RECORD CLOSE OF EIGHT HUNDRED POINT FOUR SEVEN SET MONDAY ADVANCING NASDAQ ISSUES CAME BACK TO OVERTAKE DECLINERS ONE THOUSAND FIVE HUNDRED THIRTY FOUR TO ONE THOUSAND FOUR HUNDRED EIGHTY SEVEN AFTER LAGGING EARLY IN THE SESSION TOTAL NASDAQ VOLUME EASED TO THREE HUNDRED THIRTY FOUR MILLION NINE HUNDRED FIFTY FIVE THOUSAND SHARES FROM THREE HUNDRED THIRTY NINE MILLION SEVEN HUNDRED FIFTY FOUR THOUSAND TWO HUNDRED TUESDAY NASDAQ NATIONAL MARKET VOLUME SLIPPED TO TWO HUNDRED EIGHTY TWO MILLION NINE HUNDRED NINETY ONE THOUSAND SEVEN HUNDRED SHARES TODAY FROM TWO HUNDRED EIGHTY SIX MILLION SEVEN HUNDRED SIXTY SIX THOUSAND FOUR HUNDRED PAUL STANTON HEAD OF OVER THE COUNTER TRADING AT JOHNSTON LEMON AND COMPANY SAID MEDICAL STOCKS FELL IN SYMPATHY WITH A SLIDE IN BIOTECHNOLOGY LEADER AMGEN'S STOCK PRICE THE THOUSAND OAKS CALIFORNIA COMPANY DROPPED THREE TO FORTY FOUR AFTER REPORTING WEAKER FOURTH QUARTER EARNINGS OF SIXTY FOUR CENTS A SHARE DOWN FROM NINETY ONE CENTS ON A GAIN A YEAR EARLIER ANALYSTS HAD EXPECTED EARNINGS OF SIXTY SIX CENTS QUOTE IF AMGEN TAKES ONE STEP DOWN EVERYBODY IN THE GROUP STEPS DOWN QUOTE MR. STANTON SAID REHABILITY A BRENTWOOD TENNESSEE PROVIDER OF OUTPATIENT REHABILITATION SERVICES SLIPPED THREE QUARTERS TO TEN BIOCHEM PHARMA A CANADIAN DEVELOPER OF THERAPEUTIC PRODUCTS WAS OFF FIVE EIGHTHS TO TWELVE AND SHEFFIELD MEDICAL TECHNOLOGIES HOUSTON LOST SEVEN EIGHTHS TO EIGHT AND ONE EIGHTH ON THE AMERICAN STOCK EXCHANGE BUT OTHER GROUPS ATTRACTED BUYING AND PATRICK DAVIS MANAGER OF NASDAQ TRADING AT SALOMON BROTHERS INCORPORATED SAID INVESTORS ARE STILL FEELING OPTIMISTIC TRANSPORTATION ISSUES SURGED HEARTLAND EXPRESS CORALVILLE IOWA SOARED FOUR AND ONE QUARTER TO THIRTY SIX AND ONE HALF AND T. N. T. FREIGHTWAYS ROSEMONT ILLINOIS ADDED ONE AND THREE QUARTERS TO TWENTY SIX AND THREE QUARTERS WISCONSIN CENTRAL TRANSPORTATION GAINED TWO TO SIXTY THREE THE ROSEMONT ILLINOIS RAILROAD FREIGHT TRANSPORTATION CONCERN SAID FOURTH QUARTER NET INCOME JUMPED TO NINETY SIX CENTS A SHARE FROM FORTY EIGHT CENTS A YEAR EARLIER IN THE TECHNOLOGY GROUP SYMANTEC ROSE SHARPLY AFTER THE COMPANY REPORTEDLY BACKED ANALYSTS' FISCAL FOURTH QUARTER EARNINGS ESTIMATES OF ABOUT TWENTY ONE CENTS A SHARE WHICH COMPARES WITH A LOSS OF THREE CENTS IN THE YEAR EARLIER QUARTER SHARES OF THE CUPERTINO CALIFORNIA SOFTWARE PRODUCTS FIRM CLIMBED ONE AND SEVEN EIGHTHS TO FIFTEEN AND THREE EIGHTHS AMONG NEW ISSUES ESMOR CORRECTIONAL SERVICES ROSE TO EIGHT AND ONE QUARTER WELL ABOVE ITS OFFERING PRICE OF SIX AND ONE QUARTER THE NEW YORK BASED COMPANY MANAGES JAILS PRISONS AND HALFWAY HOUSES FOR LOCAL AND STATE GOVERNMENTS AND THE FEDERAL GOVERNMENT A NOTABLE DECLINER WAS PACE AMERICAN GROUP TUCSON ARIZONA WHICH PLUMMETED THREE AND ONE HALF OR FORTY FIVE PERCENT TO FOUR AND ONE QUARTER ON TUESDAY THE UNDERWRITER OF SURETY BONDS SAID ITS BOARD WAS BEGINNING AN INTERNAL INVESTIGATION INTO ALLEGATIONS THAT CERTAIN FORMER AND PRESENT SENIOR MANAGERS ENGAGED IN IMPROPER TRANSACTIONS INVOLVING PACE'S BUSINESS BIG BOARD TRADED CAPITAL GUARANTY FELL ONE AND THREE QUARTERS TO SEVENTEEN AND THREE QUARTERS AS BROKERGE FIRMS REVISED THEIR EARNINGS ESTIMATES AND INVESTMENT OPINIONS FOLLOWING THE SAN FRANCISCO INSURER'S LOWER THAN EXPECTED FOURTH QUARTER PROFIT ELECTROLUX OF SWEDEN SURGED SIX AND ONE EIGHTH TO FIFTY ONE AND ONE QUARTER THE HOUSEHOLD APPLIANCES CONCERN REPORTED A PRELIMINARY FIFTY TWO PERCENT INCREASE IN NINETEEN NINETY THREE PRETAX PROFIT AFTER FINANCIAL ITEMS DURIRON MOVED TWO AND THREE QUARTERS HIGHER TO TWENTY SEVEN AND THREE QUARTERS ON THE BIG BOARD FOLLOWING A POSITIVE EARNINGS FORECAST THE DAYTON OHIO MAKER OF FLUID HANDLING EQUIPMENT SAID IT EXPECTS TO SIGNIFICANTLY EXCEED ANALYSTS' EARNINGS ESTIMATES OF ABOUT THIRTY SIX CENTS A SHARE FOR THE FOURTH QUARTER TESORO PETROLEUM GAINED ONE AND ONE QUARTER TO ELEVEN AND FIVE EIGHTHS ON THE NEW YORK STOCK EXCHANGE THE SAN ANTONIO TEXAS COMPANY'S SHARES ROSE AFTER C. N. B. C. CORRESPONDENT DAN DORFMAN CITED AN ANALYST'S VIEW THAT TESORO IS IN THE MIDST OF A MAJOR TURNAROUND ALSO ON THE N. Y. S. E. OHM CORPORATION GAINED ONE AND FIVE EIGHTHS TO FIFTEEN AND FIVE EIGHTHS THE FINDLAY OHIO PROVIDER OF ENVIRONMENTAL REMEDIATION SERVICES SAID IT HAS RECEIVED A NAVY CONTRACT THAT INCLUDING OPTIONS HAS A TOTAL POTENTIAL VALUE OF TWO HUNDRED FIFTY MILLION DOLLARS OVER FIVE YEARS JOHN W. OWENSBY SIXTY SIX YEARS OLD WAS ELECTED A DIRECTOR OF THIS OIL AND NATURAL GAS COMPANY INCREASING THE NUMBER OF BOARD MEMBERS TO EIGHT MR. OWENSBY IS CHIEF EXECUTIVE OFFICER OF PETRO MARINE ENGINEERING OF TEXAS INCORPORATED PETRO MARINE ENGINEERING INCORPORATED AND DATEC INCORPORATED PRESIDENT OF WORKNET CORPORATION AND VICE PRESIDENT OF OWENSBY AND KRITIKOS INCORPORATED IN THE SLUGGISH SOFT DRINK INDUSTRY LAST YEAR COCA COLA COMPANY GAINED U. S. MARKET SHARE WHILE RIVAL PEPSICO INCORPORATED'S SHARE FELL A NEW STUDY SHOWS IN THE SOFT DRINK INDUSTRY MARKET SHARE MOVEMENTS ARE A CLOSELY WATCHED MEASUREMENT OF COMPANY PERFORMANCE FIGURES WERE RELEASED YESTERDAY BY THE MAXWELL CONSUMER REPORT ON THE SOFT DRINK INDUSTRY AN ANNUAL STATISTICAL SURVEY OF BEVERAGE TRENDS ACCORDING TO THE MAXWELL REPORT COCA COLA INCREASED ITS SHARE OF THE MARKET TO FORTY ONE POINT ONE PERCENT FROM FORTY POINT SIX PERCENT IN NINETEEN NINETY TWO PEPSICO.'S SHARE SLIPPED TO THIRTY POINT EIGHT PERCENT FROM THIRTY ONE POINT THREE PERCENT IN NINETEEN NINETY TWO INDUSTRY EXPERTS SAID MUCH OF COKE'S STRENGTH CAN BE ATTRIBUTED TO ITS STRONG GAINS IN THE FOUNTAIN INDUSTRY MEANWHILE PEPSI'S TOP TWO BRANDS PEPSI AND DIET PEPSI POSTED LACKLUSTER PERFORMANCE DIET PEPSI LOST ITS RANKING AS THE FOURTH BEST SELLING DRINK TO DOCTOR PEPPER ACCORDING TO BEVERAGE DIGEST A TRADE PUBLICATION THAT YESTERDAY RELEASED A MARKET SHARE REPORT THE MAXWELL REPORT ESTIMATES THAT THE TOTAL SOFT DRINK INDUSTRY GREW AT TWO POINT NINE PERCENT IN NINETEEN NINETY THREE EXCLUDING TEA PRODUCTS THAT COMPARES WITH A ONE POINT FIVE PERCENT GROWTH RATE IN NINETEEN NINETY TWO THE NINETEEN NINETIES HAVE PROVED TO BE A TIME OF MUCH SLOWER GROWTH THAN THE PAST DECADE WHEN THE INDUSTRY WAS POSTING VOLUME GAINS OF FIVE PERCENT TO SEVEN PERCENT THE MARKET SHARE FOR COLAS CONTINUED TO DROP TO SIXTY SEVEN PERCENT OF THE MARKET COMPARED WITH SIXTY EIGHT POINT THREE PERCENT IN NINETEEN NINETY TWO ACCORDING TO THE MAXWELL REPORT THE MARKET SHARE FOR DIET SOFT DRINKS ALSO DECLINED FOR THE SECOND YEAR IN A ROW THE COMPANY'S MARRIOTT LODGING DIVISION NAMED TODD CLIST AND ED FULLER TO THE NEWLY CREATED POSTS OF EXECUTIVE VICE PRESIDENTS MR. CLIST FIFTY TWO YEARS OLD WILL HAVE RESPONSIBILITY FOR HOTELS IN THE U. S. AND CANADA HE PREVIOUSLY SERVED AS EXECUTIVE VICE PRESIDENT FOR THE FAIRFIELD INN AND COURTYARD SEGMENTS OF THE DIVISION MR. FULLER FORTY EIGHT WHO WILL OVERSEE THE COMPANY'S PROPERTIES IN COUNTRIES OUTSIDE THE U. S. AND CANADA PREVIOUSLY WAS SENIOR VICE PRESIDENT AND MANAGING DIRECTOR OF MARRIOTT LODGING INTERNATIONAL THE PARENT IS A HOTEL AND MANAGEMENT SERVICES CONCERN RIO ALGOM LIMITED SAID IT PLANS TO RAISE GROSS PROCEEDS OF ONE HUNDRED EIGHTY MILLION CANADIAN DOLLARS ONE HUNDRED THIRTY FIVE POINT THREE MILLION U. S. DOLLARS THROUGH AN ISSUANCE OF SHARES AND SHARE PURCHASE WARRANTS THE UNITS AREN'T REGISTERED FOR SALE IN THE U. S. THE TORONTO MINING COMPANY SAID IT HAS AGREED WITH UNDERWITERS TO SELL EIGHT MILLION UNITS AT TWENTY TWO CANADIAN DOLLARS AND FIFTY CENTS EACH EACH UNIT WILL COMPRISE ONE COMMON SHARE AND ONE HALF OF A WARRANT EACH FULL WARRANT WILL ENTITLE THE HOLDER WITHIN TWO YEARS TO BUY ONE COMMON SHARE FOR TWENTY FIVE CANADIAN DOLLARS RIO ALGOM CURRENTLY HAS ABOUT FORTY THREE POINT SEVEN MILLION SHARES OUTSTANDING THEY CLOSED YESTERDAY AT TWENTY TWO POINT ONE TWO FIVE CANADIAN DOLLARS DOWN FIFTY CANADIAN CENTS IN TRADING ON THE TORONTO STOCK EXCHANGE THE AGREEMENT WITH THE UNDERWRITERS IS SUBJECT TO REGULATORY APPROVAL PROCEEDS WILL BE USED TO REDEEM TWENTY ONE POINT FIVE MILLION CANADIAN DOLLARS OF PREFERRED SHARES AND FOR GENERAL CORPORATE PURPOSES INCLUDING THE POSSIBLE EXPANSION OF THE CERRO COLORADO MINE IN CHILE NEW YORK'S NEW REPUBLICAN MAYOR PROPOSED TAX REDUCTIONS AIMED AT STIMULATING ECONOMIC GROWTH AND HELPING SMALL BUSINESS IN THE NATION'S LARGEST CITY THE PROPOSALS BY MAYOR RUDOLPH W. GIULIANI INCLUDE LOWERING TAXES ON COMMERCIAL RENTS WHICH HAVE BEEN AN ESPECIALLY SORE POINT WITH SMALL BUSINESSES HERE THE MAYOR ALSO SEEKS TO ELIMINATE THE CITY'S PORTION OF THE SALES TAX ON ITEMS OF CLOTHING UNDER ONE HUNDRED DOLLARS A MEASURE AIMED AT STIMULATING RETAIL SALES THOSE IDEAS ARE ONLY A TINY PART OF THE MAYOR'S NEWLY UNVEILED FINANCIAL PLAN FOR FISCAL YEARS NINETEEN NINETY FOUR THROUGH NINETEEN NINETY EIGHT AND THEY FALL SHORT OF WHAT MANY SMALL BUSINESS OWNERS WANT SUCH AS MEASURES TO CONTROL ACTUAL RENTS STILL THEY MAY COME AS PLEASANT SURPRISES FOR ENTREPRENEURS WHO KNOW THE CITY IS STRUGGLING TO CLOSE HUGE PROJECTED BUDGET GAPS THE PLAN AS A WHOLE CALLS FOR TOTAL EXPENDITURES OF THIRTY TWO BILLION DOLLARS IN THE FISCAL YEAR ENDING JUNE THIRTIETH NINETEEN NINETY FIVE THAT WOULD BE A SPENDING CUT OF SIX HUNDRED SEVENTEEN MILLION DOLLARS FROM FISCAL NINETEEN NINETY FOUR THE LOWEST PROJECTED SPENDING RATE SINCE NINETEEN SEVENTY FIVE CITY OFFICIALS SAID SOME FIFTEEN THOUSAND MUNICIPAL JOBS WOULD BE ELIMINATED BY THE END OF FISCAL NINETEEN NINETY FIVE MR. GIULIANI WHO ASSUMED OFFICE LAST MONTH SAID HE AIMS TO CUT THE CITY GOVERNMENT TO AN AFFORDABLE SIZE STRENGTHEN THE CITY'S ABILITY TO PROVIDE ESSENTIAL SERVICES AND ENCOURAGE PRIVATE ECONOMIC GROWTH QUOTE ONE OF THE REASONS NEW YORK CITY'S ECONOMY HAS LAGGED OTHER PARTS OF THE U. S. IS THE HIGH TAX BURDEN QUOTE THE CITY'S OFFICE OF MANAGEMENT AND BUDGET SAID IN A DOCUMENT OUTLINING THE NEW FINANCIAL PLAN IF THE STIMULUS PACKAGE AS PROPOSED BY THE MAYOR IS EVENTUALLY INCLUDED IN AN ACTUAL CITY BUDGET IT WILL BEGIN WITH A REDUCTION IN THE HOTEL TAX TO FIVE PERCENT FROM SIX PERCENT EFFECTIVE DECEMBER FIRST SEPARATELY DEMOCRATIC GOVERNOR MARIO CUOMO HAS PROPOSED REPEALING THE STATE'S EXTRA FIVE PERCENT TAX ON ROOMS THAT RENT FOR MORE THAN ONE HUNDRED DOLLARS A NIGHT THE CITY HOTEL TAX CUT WOULD SAVE PAYERS OF THE TAX AN ESTIMATED SEVEN MILLION DOLLARS IN FISCAL NINETEEN NINETY FIVE AND CITY OFFICIALS HOPE THE CUT WOULD HELP CITY HOTELS ATTRACT AND RETAIN BUSINESS THE PORTION OF BUSINESSES EXEMPT FROM PAYING COMMERCIAL RENT TAXES MAINLY SMALL COMPANIES WOULD RISE SHARPLY CITY OFFICIALS SAID THE CITY WOULD PHASE IN INCREASES IN THE THRESHOLD BASED ON RENT PAID THAT DETERMINES WHICH CONCERNS MUST PAY THE TAX EVENTUALLY THE TAX WOULD BE ELIMINATED EXCEPT IN MANHATTAN SOUTH OF NINETY SIXTH STREET BY FISCAL NINETEEN NINETY SEVEN ANNUAL TAX RELIEF FROM THESE CHANGES WOULD BE ONE HUNDRED TWELVE MILLION DOLLARS ACCORDING TO THE MAYOR'S PLAN OFFICIALS SAID THAT ELIMINATING THE CITY PORTION OF THE SALES TAX ON ITEMS OF CLOTHING UNDER ONE HUNDRED DOLLARS WOULD SAVE CONSUMERS TWO HUNDRED EIGHTEEN MILLION DOLLARS ANNUALLY BY FISCAL NINETEEN NINETY SEVEN WHEN THE CHANGE WOULD BE FULLY EFFECTIVE A PARTNERSHIP LED BY JONES INTERCABLE INCORPORATED SAID IT BOUGHT FOUR UNITED KINGDOM CABLE COMPANIES FROM PACTEL CABLE THE TERMS WEREN'T DISCLOSED THE COMPANIES ARE PETERBOROUGH CABLEVISION LIMITED NORWICH CABLEVISION HOLDING COMPANY BROADLAND CABLEVISION HOLDING COMPANY AND FENLAND CABLEVISION HOLDING COMPANY TOGETHER THEY REPRESENT ABOUT TWO HUNDRED TWENTY FIVE THOUSAND FRANCHISE LICENSED HOMES IN THE U. K. PACTEL CABLE IS A UNIT OF PACIFIC TELESIS GROUP CHRYSLER CORPORATION IS RECALLING SEVENTEEN THOUSAND EIGHT HUNDRED OF ITS NEW DODGE RAM PICKUPS THE SECOND RECALL SINCE THE VEHICLES WENT ON SALE IN THE FALL THE RECALL INVOLVES A RELATIVELY MINOR SEAT LATCH PROBLEM BUT THE LATEST RECALL AND A RECENTLY ANNOUNCED RECALL OF JEEP GRAND CHEROKEES COULD PROVE MAJOR OBSTACLES TO THE CHRYSLER'S EFFORT TO CREATE AN IMAGE OF ITSELF AS THE WORLD'S QUOTE PREMIER QUOTE AUTO MAKER LIKE THE GRAND CHEROKEES THE DODGE RAMS WERE BUILT AND DESIGNED UNDER A NEW APPROACH THAT KEEPS DOWN INVESTMENT COSTS BY RELYING ON SUPPLIERS TO DESIGN PARTS BUT THE VEHICLES WERE RECALLED BECAUSE OF GLITCHES IN SUPPLIER PROVIDED PARTS IN AN EFFORT TO BETTER UNDERSTAND HOW CUSTOMERS RESPOND TO RECALLS CHRYSLER IS TEST MARKETING AT LEAST THREE SEPARATE RECALL APPROACHES TO THE DODGE RAM PROBLEM ACROSS THE COUNTRY IN SOME INSTANCES CUSTOMERS ARE DROPPING OFF THEIR CARS AND HAVING THE PROBLEMS FIXED IN OTHER CASES CUSTOMERS ARE RECEIVING FREE GIFTS SUCH AS A CAR WASH OR A TEMPORARY REPLACEMENT VEHICLE AND IN SOME CASES DODGE DEALERS ARE PICKING UP THE TRUCKS TO CORRECT THE PROBLEMS AFTER THE RECALL IS CONCLUDED CHRYSLER WILL SURVEY THE TRUCK OWNERS IN AN EFFORT TO SEE HOW BEST TO HANDLE FUTURE RECALLS CHRYSLER SAID AT ISSUE IN THE LATEST RAM RECALL COVERING TRUCKS BUILT BETWEEN JULY AND LATE OCTOBER OF NINETEEN NINETY THREE IS THE LATCH THAT PREVENTS THE SEAT BACK FROM FALLING FORWARD CHRYSLER SAID NO INJURIES OR ACCIDENTS HAVE BEEN REPORTED AS A RESULT OF THE PROBLEM IN NOVEMBER CHRYSLER RECALLED TWO THOUSAND RAMS BUILT BEFORE SEPTEMBER TWENTY FIFTH BECAUSE OF A FRONT SUSPENSION BOLT JON P. GOODMAN FIFTY ONE YEARS OLD RESIGNED AS CHAIRMAN AND A DIRECTOR OF THIS BANKING CONCERN AND ITS CALIFORNIA UNITED BANK N. A. UNIT SHE WAS SUCCEEDED AS CHAIRMAN OF C. U. BANCORP BY PAUL W. GLASS A FORTY SEVEN YEAR OLD DIRECTOR DOCTOR GOODMAN INFORMED THE BOARD THAT SHE HAS SUCCEEDED IN HELPING RETURN THE BANK TO STABILITY AND WANTS TO SPEND MORE TIME AS A DIRECTOR OF THE ENTREPRENUER PROGRAM AT THE UNIVERSITY OF SOUTHERN CALIFORNIA MR. GLASS IS A PRINCIPAL IN THE ENCINO ACCOUNTING FIRM OF GLASS AND ROSEN IN RELATED MOVES STEPHEN G. CARPENTER FIFTY THREE WAS ELECTED CHAIRMAN OF CALIFORNIA UNITED BANK WHERE HE WILL CONTINUE TO SERVE AS AS CHIEF EXECUTIVE DAVID I. RAINER THIRTY SIX WAS NAMED PRESIDENT OF THE BANK WHERE HE WILL CONTINUE AS CHIEF OPERATING OFFICER ROGERS COMMUNICATIONS INCORPORATED SAID IT PLANS TO MAKE AN OFFER VALUED AT TWO POINT SEVEN BILLION CANADIAN DOLLARS TWO POINT OH THREE BILLION U. S. DOLLARS FOR EIGHTY THREE PERCENT OF MACLEAN HUNTER LIMITED IF THE BID WHICH WAS UNSOLICITED IS SUCCESSFUL IT WOULD CREATE A MEDIA COMPANY THAT WOULD CONTROL A THIRD OF CANADIAN CABLE TELEVISION TED ROGERS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE TELECOMMUNICATIONS AND CABLE TELEVISION COMPANY HAS PURCHASED SHARES REPRESENTING EIGHT POINT THREE PERCENT OF MACLEAN HUNTER WHICH WOULD IN TURN BE SOLD TO ROGERS COMMUNICATIONS AS PART OF THE PLANNED BID MR. ROGERS SAID HIS COMPANY'S BOARD WILL MEET TOMORROW TO DETERMINE THE PRICE AND TERMS OF THE OFFER ADDING THAT THE OFFER WILL BE MOSTLY CASH WITH SOME ROGERS COMMUNICATIONS SHARES THE COMPANY WON'T OFFER TO PURCHASE THE SEVENTEEN PERCENT OF MACLEAN HUNTER STOCK CONTROLLED BY THE COMPANY'S INDEPENDENT DIRECTORS NEWS OF THE ANNOUNCEMENT BOOSTED SHARES OF MACLEAN HUNTER AND OTHER CANADIAN CABLE COMPANIES MR. ROGERS SAID CANADA HASN'T KEPT PACE WITH THE U. S. IN CREATING LARGE POWERFUL MULTIMEDIA COMPANIES QUOTE IF WE ARE TO MAINTAIN A DISTINCTIVE CANADIAN VOICE QUOTE HE SAID QUOTE IT IS ESSENTIAL TO BUILD COMPANIES OF COMPARABLE SCALE AND SOPHISTICATION QUOTE IN ADDITION TO ITS CABLE OPERATIONS MACLEAN HUNTER ALSO OWNS SIXTY TWO PERCENT OF THE TORONTO SUN PUBLISHING COMPANY AND HAS INTERESTS IN MAGAZINES AND RADIO IT ALSO HAS FIVE HUNDRED FORTY THOUSAND U. S. CABLE SUBSCRIBERS AND PUBLISHING INTERESTS IN THE U. S. MR. ROGERS SAID IF THE OFFER IS SUCCESSFUL THE NEW COMPANY WOULD LIKELY TRY TO SELL MACLEAN HUNTER'S U. S. CABLE INTERESTS BUT KEEP THE REMAINING ASSETS INTACT MACLEAN HUNTER DIDN'T APPEAR TO WELCOME ROGERS'S ADVANCES WHICH IT DISCLOSED YESTERDAY MORNING BEFORE ITS SUITOR HAD DECIDED ON TERMS FOR THE BID OR LINED UP ALL ITS FINANCING MACLEAN HUNTER SAID IT WAS APPROACHED BY MR. ROGERS AND DECIDED TO DISCLOSE THAT INFORMATION WHEN IT BECAME APPARENT ROGERS COMMUNICATIONS INTENDED TO MAKE A BID RONALD OSBORNE PRESIDENT AND CHIEF EXECUTIVE OF MACLEAN HUNTER SAID THE COMPANY WILL LOOK AT ALL OUR OPTIONS IF ROGERS PROCEEDS WITH A BID HE SAID THE COMPANY WANTS TO CONSIDER THE BEST INTERESTS OF ITS SHAREHOLDERS EMPLOYEES AND THE CONSUMERS OF ITS NEWSPAPERS AND OTHER PROPERTIES WE WANT TO MAKE SURE ALL THE PROPERTIES ARE IN SAFE AND STABLE HANDS HE SAID ROGERS COMMUNICATIONS SAID IT WOULD ARRANGE TWO BILLION CANADIAN DOLLARS IN DEBT FINANCING TO FUND THE OFFER THE COMPANY ALREADY HAD TWO POINT SEVEN BILLION CANADIAN DOLLARS IN LONG TERM DEBT AS OF JUNE THIRTIETH ROGERS COMMUNICATIONS IS CANADA'S LEADING CABLE TELEVISION OPERATOR WITH ONE POINT EIGHT MILLION OF THE COUNTRY'S SEVEN POINT TWO MILLION HOUSEHOLD SUBSCRIBERS MACLEAN HUNTER RANKING FOURTH IN THE COUNTRY HAS ABOUT SEVEN HUNDRED THOUSAND SUBSCRIBERS MR. ROGERS SIXTY YEARS OLD OWNS ABOUT EIGHTY NINE PERCENT OF THE VOTING SHARES OF ROGERS COMMUNICATIONS HE'S KNOWN FOR SPOTTING TRENDS EARLY IN THE HIGH TECHNOLOGY SERVICE SECTOR HE FORMED CANADA'S FIRST COMMERCIAL F. M. RADIO STATION AND MOVED INTO CABLE TELEVISION IN THE NINETEEN SIXTIES AND CELLULAR COMMUNICATIONS IN THE EARLY NINETEEN EIGHTIES CABLE T. V. PENETRATED CANADIAN HOMES EARLIER AND FASTER THAN IN MOST OTHER COUNTRIES PARTLY BECAUSE OF MR. ROGERS'S EFFORTS SOME ANALYSTS WERE PUZZLED BY ROGERS'S INTEREST IN MACLEAN HUNTER I'M JUST MYSTIFIED SAID STEVE GARMAISE A LONGTIME ROGERS COMMUNICATIONS ANALYST WITH FIRST MARATHON SECURITIES LIMITED IN TORONTO WITH ITS LARGE CABLE NETWORK AND A STAKE IN TELECOMMUNICATIONS CONCERN UNITEL COMMUNICATIONS INCORPORATED ROGERS COMMUNICATIONS IS ALREADY WELL POSITIONED TO BECOME A MAJOR PLAYER IN THE EMERGING TECHNOLOGIES IN THE TELEVISION AND COMMUNICATIONS INDUSTRIES MR. GARMAISE SAID I DON'T SEE WHAT MORE THIS ADDS ANDREW MCCREATH AN ANALYST WITH GORDON CAPITAL CORPORATION IN TORONTO SAID ROGERS COMMUNICATIONS IS MAINLY INTERESTED IN MACLEAN HUNTER SO THAT IT CAN BEEF UP ITS CANADIAN CABLE HOLDINGS FOR THE MULTIMEDIA SERVICES THAT ROGERS WILL EVENTUALLY OFFER MACLEAN HUNTER'S SHARES JUMPED ONE POINT SIX TWO FIVE CANADIAN DOLLARS TO FIFTEEN POINT THREE SEVEN FIVE CANADIAN DOLLARS ELEVEN U. S. DOLLARS AND FIFTY SIX CENTS IN ACTIVE TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY ROGERS COMMUNICATIONS STOCK SANK EIGHTY SEVEN POINT FIVE CANADIAN CENTS TO TWENTY ONE POINT THREE SEVEN FIVE CANADIAN DOLLARS STOCKS OF OTHER CANADIAN CABLE TELEVISION COMPANIES ROSE INCLUDING MONTREAL BASED VIDEOTRON LIMITED UP SEVENTY FIVE CANADIAN CENTS TO TWENTY NINE CANADIAN DOLLARS AND SHAW COMMUNICATIONS INCORPORATED OF EDMONTON ALBERTA UP ONE CANADIAN DOLLAR AND TWENTY FIVE CENTS TO TWENTY SIX CANADIAN DOLLARS AND FIFTY CENTS ANALYSTS CAUTIONED THAT BIDDING WARS WERE UNLIKELY FOR VIDEOTRON OR SHAW BECAUSE LIKE ROGERS THEY'RE EACH CONTROLLED BY A DOMINANT SHAREHOLDER WITH A MAJORITY OF VOTING STOCK ANY TAKEOVER OF MACLEAN HUNTER WOULD FACE A HURDLE WITH CANADIAN REGULATORS SINCE ROGERS WOULD BECOME BY FAR THE DOMINANT OPERATOR IN THE CANADIAN CABLE BUSINESS ROGERS COMMUNICATIONS INCORPORATED HASN'T ATTACHED A VALUE TO ITS PLANNED OFFER FOR MOST OF MACLEAN HUNTER LIMITED AN ARTICLE THURSDAY SAID THE COMPANY VALUED THE OFFER AT TWO POINT SEVEN BILLION CANADIAN DOLLARS TWO POINT OH THREE BILLION U. S. DOLLARS THE FIGURE REPRESENTED THE INDICATED VALUE OF SUCH AN OFFER USING STOCK PRICES AT THAT TIME BELL ATLANTIC CORPORATION LINED UP ANOTHER ALLY IN ITS PUSH INTO INTERACTIVE SERVICES AGREEING WITH NEWSPAPER PUBLISHER KNIGHT RIDDER INCORPORATED TO DEVELOP NEWS ENTERTAINMENT AND ADVERTISING FOR DELIVERY INTO THE HOME THE TWO SIDES EXPECT TO SIGN A FINAL PACT IN A QUOTE FEW MONTHS QUOTE SAID ROBERT TOWNSEND VICE PRESIDENT OF THE VIDEO SERVICES UNIT AT BELL ATLANTIC A REGIONAL OPERATING COMPANY THAT PROVIDES LOCAL TELEPHONE SERVICE ACROSS THE MIDDLE ATLANTIC REGION BUT HE SAID THE PARTNERS HAD NO IDEA WHEN THEIR COLLABORATION MIGHT PRODUCE THE FIRST SERVICES OR WHERE OR HOW MUCH THEY WOULD COST OR EVEN WHAT THE FIRST OFFERINGS MIGHT LOOK LIKE THE AGREEMENT MARKS THE FIRST TIME BELL ATLANTIC HAS ALLIED WITH A MAJOR NEWSPAPER PUBLISHER FOR ITS INTERACTIVE EFFORTS AND IS FURTHER EVIDENCE THAT THE PUBLISHING INDUSTRY APPEARS TO BE TURNING TO THE BELLS TO HELP THEM LOOK FOR NEW DISTRIBUTION WAYS MR. TOWNSEND SAID THE PACT MIGHT ALSO INDICATE BELL ATLANTIC DESPITE ITS PENDING ACQUISITION OF CABLE GIANT TELE COMMUNICATIONS INCORPORATED STILL DOESN'T HAVE ENOUGH PROGRAMMING TO MEET FUTURE NEEDS IT SAYS THE T. C. I. DEAL WASN'T ENOUGH THAT THEY'RE STILL SCRATCHING AND REACHING WHEN IT COMES TO CONTENT SAID MARION BOUCHER A BEAR STEARNS AND COMPANY ANALYST FOR KNIGHT RIDDER THE PACT MARKS A RETURN TO INTERACTIVE SERVICES AFTER A RUDE INTRODUCTION IN THE NINETEEN EIGHTIES THE COMPANY HAD EXPERIMENTED WITH A VIDEOTEX SERVICE CALLED VIEWTRON PULLING THE PLUG IN NINETEEN EIGHTY SIX AFTER LOSING ABOUT FIFTY MILLION DOLLARS THEY LEARNED WHAT NOT TO DO SAID MR. TOWNSEND A KNIGHT RIDDER SPOKESWOMAN SAID THE SERVICE FLOPPED PARTLY BECAUSE MOST PEOPLE DIDN'T USE COMPUTERS BACK THEN BELL ATLANTIC HOPES TO USE WHATEVER EMERGES FROM THE COLLABORATION TO PROMOTE ITS NEW STARGAZER BRAND OF VIDEO PRODUCTS AND SERVICES AT THE MOMENT IT IS AN EXPERIMENTAL SERVICE LIMITED TO A NAVIGATIONAL TOOL THAT LETS USERS SIFT THROUGH MOVIE LISTINGS AND INTERACTIVE SHOPPING SERVICES OVER BELL ATLANTIC'S NETWORK OTHER NEWSPAPER COMPANIES HAVE MADE RECENT MOVES TO GO ON LINE LAST MONTH WASHINGTON POST COMPANY SIGNED AN ALLIANCE WITH ORACLE CORPORATION WHICH IS A KEY SUPPLIER OF THE NEW TECHNOLOGY TO BELL ATLANTIC TO PUBLISH NEWS AND INFORMATION USING VIDEO AND SOUND FOR ON LINE DISTRIBUTION EARLIER NEW YORK TIMES COMPANY ANNOUNCED PLANS TO LAUNCH AN ELECTRONIC VERSION OF ITS NEWSPAPER ON AMERICA ONLINE A COMPUTER SERVICE THAT ALREADY OFFERS THE CHICAGO TRIBUNE AND OTHER NEWSPAPERS JARED SANDBERG CONTRIBUTED TO THIS ARTICLE AS ANTICIPATED SILICON GRAPHICS INCORPORATED NAMED EDWARD R. MCCRACKEN TO SUCCEED JAMES H. CLARK CHAIRMAN AND FOUNDER MR. MCCRACKEN FIFTY YEARS OLD HAS PLAYED THE NUTS AND BOLTS MAN TO MR. CLARK'S ROLE AS VISIONARY WITHIN THE COMPANY IT WAS MR. CLARK FOR EXAMPLE WHO WAS CREDITED WITH FORGING SILICON GRAPHICS RECENT MULTIMEDIA JOINT VENTURES WITH TIME WARNER INCORPORATED AND NINTENDO BUT ANALYSTS SAID THEY DIDN'T EXPECT THE TRANSITION TO CAUSE ANY RIPPLES IN SILICON GRAPHICS' STRATEGY OF MOVING INTO OTHER DIGITAL MEDIA VENTURES QUOTE SILICON GRAPHICS HAS A NUMBER OF VISIONARIES BESIDES JIM CLARK I WOULDN'T BE SURPRISED IF THEY HAD OTHER UNANNOUNCED PARTNERSHIPS ON THE BOARDS SAID LAURA CONIGLIARO OF PRUDENTIAL SECURITIES RESEARCH JIM CLARK'S VISION IS ALIVE AND WELL IN THE COMPANY SAID ROBERT HERWICK OF HAMBRECHT AND QUIST ANALYSTS CITED AS PROOF SILICON GRAPHICS SEPARATE ANNOUNCEMENT YESTERDAY THAT FOREST BASKETT FIFTY THE COMPANY'S SENIOR VICE PRESIDENT OF RESEARCH AND DEVELOPMENT WAS BEING GIVEN THE ADDITIONAL TITLE OF CHIEF TECHNOLOGY OFFICER DOCTOR BASKETT IS KNOWN AS ONE OF THE COMPANY'S LEADING INNOVATORS SILICON GRAPHICS SAID MR. MCCRACKEN WILL RETAIN HIS TITLE AS CHIEF EXECUTIVE OFFICER HIS JOB AS PRESIDENT WILL SHIFT TO THOMAS JERMOLUK THIRTY SEVEN MR. JERMOLUK IN TURN WILL REMAIN CHIEF OPERATING OFFICER BUT THE COMPANY WILL RETIRE HIS OTHER TITLE OF EXECUTIVE VICE PRESIDENT THE U. S. AND THE UNITED NATIONS MAY SOON HAVE TO DECIDE WHETHER TO USE QUOTE A VERY BIG STICK QUOTE AND IMPOSE ECONOMIC SANCTIONS ON NORTH KOREA DEFENSE SECRETARY DESIGNATE WILLIAM PERRY SAID DEFENDING THE CLINTON ADMINISTRATION'S HANDLING OF THE STANDOFF OVER NORTH KOREA'S PURSUIT OF NUCLEAR WEAPONS MR. PERRY APPEARED TO CONCEDE THAT U. S. NEGOTIATORS THUS FAR HAVE OFFERED ONLY CARROTS TO THE NORTH KOREANS BUT HE WARNED AT HIS CONFIRMATION HEARING BEFORE THE SENATE ARMED SERVICES COMMITTEE THERE ARE STICKS DOWNSTREAM ALSO THE EFFICACY OF THE CONTEMPLATED ECONOMIC SANCTIONS WOULD LARGELY BE DETERMINED BY THE DEGREE TO WHICH CHINA BACKS THEM MR. PERRY ADDED THUS HE ARGUED WHILE IT IS IMPORTANT TO SUPPORT HUMAN RIGHTS IN CHINA THAT GOAL WOULD PALE IN COMPARISON WITH THE PROSPECT OF NUCLEAR WAR ON THE KOREAN PENINSULA CONCEDING THAT NORTH KOREA MAY ALREADY POSSESS A NUCLEAR WEAPON MR. PERRY SAID HIS BIGGEST CONCERN ISN'T WHETHER SUCH A WEAPON EXISTS BUT RATHER STOPPING NORTH KOREA FROM PURSUING A PENDING PROGRAM TO DEVELOP WHAT MAY BE DOZENS OF NUCLEAR BOMBS REFLECTING THE CONCERN THAT KOREA IS NOW PROVOKING IN THE ADMINISTRATION MR. PERRY AT ONE POINT REFERRED TO KOREA IN A FREUDIAN SLIP AS THE NUCLEAR PENINSULA THE IDEA OF A TOUGHER STANCE AGAINST NORTH KOREA GAINED SUPPORT YESTERDAY IN THE SENATE ON VOICE VOTES SENATORS APPROVED TWO AMENDMENTS THAT SEEK INTERNATIONAL SANCTIONS AGAINST NORTH KOREA AND CALL FOR A RENEWED U. S. NUCLEAR PRESENCE ON THE KOREAN PENINSULA MR. PERRY IS EXPECTED TO BE CONFIRMED AS DEFENSE SECRETARY EASILY PERHAPS AS SOON AS TODAY JOHN DEUTCH CURRENTLY UNDERSECRETARY OF DEFENSE FOR ACQUISITION IS EXPECTED TO BE NOMINATED SOON TO SUCCEED MR. PERRY AS DEPUTY DEFENSE SECRETARY THE PENTAGON'S NUMBER TWO SLOT LIKE MR. PERRY MR. DEUTCH IS A TECHNOCRAT WITH A BACKGROUND IN ACADEMIA AND THE CARTER ADMINISTRATION IN SHARP CONTRAST TO HIS REPUTATION AS A MILITARY TECHNOLOGIST WITH AN UNSURE VOICE IN THE BROADER ISSUES OF NATIONAL SECURITY MR. PERRY STAKED OUT STANCES ON A RANGE OF FOREIGN POLICY QUESTIONS IN ADDITION TO HIS COMMENTS ON KOREA HE DISAGREED WITH A NONBINDING SENATE RESOLUTION PASSED LAST WEEK AND ARGUED AGAINST LIFTING THE U. N. ARMS EMBARGO ON THE BOSNIAN MUSLIMS AND HE APPEARED TO ENDORSE LIFTING THE TRADE EMBARGO ON VIETNAM MR. PERRY ALSO PUT SOME RESPECTFUL DISTANCE BETWEEN HIMSELF AND DEFENSE SECRETARY LES ASPIN WHO WAS FORCED TO SUBMIT HIS RESIGNATION IN DECEMBER HE VOWED TO RESTRUCTURE WHAT HE CALLED THE PENTAGON'S QUOTE INEFFECTIVE QUOTE POLICY MAKING OPERATION WHICH CRITICS HAD SAID FOR MONTHS WAS A BUREAUCRATIC DISASTER THAT REFLECTED MR. ASPIN'S MANAGERIAL FLAWS IN WHAT APPEARED TO BE A VEILED REFERENCE TO MR. ASPIN'S SINGLE BIGGEST MISSTEP HIS SEPTEMBER DECISION TO REJECT A REQUEST FROM THE U. S. COMMANDER IN SOMALIA FOR ARMORED VEHICLES MR. PERRY IN HIS WRITTEN STATEMENT PLEDGED TO GIVE HIS MILITARY COMMANDERS THE REQUIRED SUPPORT AS THEY DIRECT OUR FORCES IN THE FIELD WE'RE VERY DIFFERENT PEOPLE MR. PERRY SAID ABOUT HIMSELF AND MR. ASPIN WHEN PRODDED BY THE COMMITTEE BUT OUR PHILOSOPHIES AND OUR OBJECTIVES WHAT WE'RE TRYING TO ACHIEVE AT THE PENTAGON ARE VERY SIMILAR IF ANYTHING MR. PERRY IS EXPECTED TO ACCELERATE THE IMPLEMENTATION OF THE PENTAGON'S NEW ACTIVIST POLICY TO HELP THE DEFENSE INDUSTRY SHRINK BUT REMAIN HEALTHY THAT POLICY IS PROBABLY THE BIGGEST DEPARTURE THE PENTAGON HAS MADE UNDER THE CLINTON ADMINISTRATION YET ONLY ONE MEMBER OF THE GENERALLY CONSERVATIVE ARMED SERVICES PANEL CHALLENGED MR. PERRY'S ADVOCACY OF IT SENATOR JOHN MCCAIN R. ARIZONA BRIEFLY RAISED THE ISSUE OF THE PENTAGON'S RECENT DECISION TO SPEND SEVERAL BILLION DOLLARS BUILDING A THIRD SEAWOLF ATTACK SUBMARINE EVEN THOUGH IT ISN'T NEEDED MILITARILY OTHER MEMBERS OF THE PANEL APPEARED SOMEWHAT COWED BY MR. PERRY'S TECHNICAL AND FISCAL EXPERTISE MR. PERRY ALSO SHOWED A NERVY WILLINGNESS TO TANGLE EVEN WITH COMMITTEE CHAIRMAN SAM NUNN D. GEORGIA GIVING MR. PERRY A CHANCE TO BACK DOWN FROM HIS WRITTEN TESTIMONY WHICH SAID THE B. TWO STEALTH BOMBER PROGRAM SHOULD STOP AT THE TWENTY AIRCRAFT PLANNED SENATOR NUNN RECOMMENDED THAT HE LOOK AT WHETHER HE MIGHT WANT TO HAVE NORTHROP CORPORATION BUILD MORE B. TWO STEALTH BOMBERS IN THE FUTURE BUT MR. PERRY DIDN'T TAKE THE BAIT AND POLITELY STOOD BY HIS VIEW THAT THE U. S. BOMBER FORCE SHOULD SHRINK TO ABOUT ONE HUNDRED B. ONES AND B. TWOS PLUS SEVERAL DOZEN ELDERLY B. FIFTY TWOS THE AIR FORCE CURRENTLY OPERATES NINETY FIVE B. ONES NINETY FIVE B. FIFTY TWO H.S AND ONE B. TWO PLUS SIX B. FIFTY TWO G.S THAT WILL BE RETIRED NEXT WEEK FOR A TOTAL BOMBER FLEET OF ONE HUNDRED NINETY SEVEN AIRCRAFT SEEMING TO ISSUE A MORE GENERAL CHALLENGE TO CAPITOL HILL MR. PERRY PROMISED IN HIS WRITTEN STATEMENT TO WORK WITH CONGRESS BUT HE CONTINUED I WON'T SHIRK FROM MAKING THE TOUGH CHOICES THAT STATEMENT APPEARED TO REFER TO THE FRUSTRATION HE AND OTHER SENIOR PENTAGON OFFICIALS HAVE FELT OVER THE PAST YEAR AS THEIR EFFORTS TO CUT OVERHEAD HAVE RUN INTO ROADBLOCKS PLACED BY LAWMAKERS TRYING TO PROTECT THE SECURE HIGH WAGE JOBS IN DEFENSE DEPARTMENT FACILITIES IN THEIR DISTRICTS TOUCHING ON ANOTHER MAJOR ACQUISITION ISSUE MR. PERRY SAID THAT AS EXPECTED THE FISCAL NINETEEN NINETY FIVE DEFENSE BUDGET WILL CALL FOR BUILDING A NEW AIRCRAFT CARRIER THE C. V. N. SEVENTY SIX THAT SHIP WOULD BE BUILT BY TENNECO INCORPORATED'S NEWPORT NEWS SHIPBUILDING AND DRY DOCK COMPANY THE DEFTNESS OF MR. PERRY'S PERFORMANCE BEFORE THE COMMITTEE WAS SUMMED UP IN A SELF CRITICISM HE DELIVERED IN AN OFFHANDED WAY THE PRESS HAS OBSERVED THAT A PRINCIPAL DEFICIENCY I HAD FOR THIS JOB WAS BEING SOFT SPOKEN AND I WILL WORK VERY HARD TO OVERCOME THAT PROBLEM HE SAID INSURANCE COMPANIES WHICH INITIALLY CHEERED THE CLINTON ADMINISTRATION'S PLAN TO REVISE THE SUPERFUND LAW NOW FEAR A NEW TAX IN THE PLAN WILL DO LITTLE TO EASE THEIR COSTS FOR CLEANING UP HAZARDOUS WASTE SITES NOW ESTIMATED AS ULTIMATELY COSTING AS MUCH AS TWO HUNDRED BILLION DOLLARS THE ADMINISTRATION'S PLAN TO REVISE THE SUPERFUND LAW SCHEDULED TO BE RELEASED TODAY PROPOSES WHAT'S EXPECTED TO BE A THREE POINT ONE BILLION DOLLAR ASSESSMENT OVER FIVE YEARS ON COMPANIES THAT WRITE COMMERCIAL PROPERTY AND CASUALTY INSURANCE THE MONEY WOULD GO INTO A TRUST FUND THAT COMPANIES WITH POLLUTION LIABILITIES CAN TAP FOR PART OF THEIR CLEAN UP COSTS THE INDUSTRY HAD SUPPORTED THE TRUST FUND CONCEPT BECAUSE IT COULD SLASH LEGAL FEES WHICH ARE ONE OF THE BIGGEST COSTS NOW ASSOCIATED WITH CLEANING WASTE SITES BUT UPON FURTHER ANALYSIS OF THE CLINTON PLAN INSURERS WORRY THAT THE CHANGES MIGHT BE WORSE THAN THE STATUS QUO THAT'S BECAUSE THE ADMINISTRATION WOULD ALLOW POLLUTERS TO SIDESTEP THE TRUST FUND AND SUE THE INSURANCE COMPANIES TO PAY THE ENTIRE CLEAN UP COSTS AS THEY DO NOW QUOTE I'M PESSIMISTIC ABOUT THE PROPOSAL AT THIS POINT QUOTE SAID JOHN ARLINGTON SENIOR COUNSEL FOR THE AMERICAN INSURANCE ASSOCIATION A LEADING INDUSTRY TRADE GROUP INSURANCE COMPANIES FEAR POLLUTERS WITH WEAK COURT CASES WOULD TAP THE TRUST FUND AND GET MORE MONEY THAN MERITED BY THEIR LEGAL POSITION MEANWHILE POLLUTERS WITH STRONG COURT CASES WOULD SUE AND GET MORE MONEY THAN THEY COULD FROM THE TRUST FUND IT'S THAT ESCAPE HATCH THAT IS SO DIFFICULT TO CALCULATE SAID JOHN MASCOTTE CHAIRMAN OF CONTINENTAL CORPORATION CONTINENTAL AND OTHER INSURERS ARE NOW TRYING TO MAKE THOSE CALCULATIONS FIGURING WHETHER THEY WOULD PAY MORE OR LESS UNDER THE CLINTON PLAN THAN THEY DO NOW THEIR FINDINGS COULD DETERMINE WHETHER THE INSURANCE INDUSTRY DECIDES TO SUPPORT OR OPPOSE THE ADMINISTRATION BILL THERE'S A DISTINCT POSSIBILITY THAT THE REMEDY WILL COST MORE THAN IT CURRENTLY COSTS SAID DAVID FARMER A VICE PRESIDENT FOR THE ALLIANCE OF AMERICAN INSURERS ANOTHER INSURANCE TRADE ASSOCIATION INSURANCE EXPERTS SAY ANOTHER ISSUE IS WHETHER THE TRUST FUND WILL HAVE ENOUGH MONEY TO PAY ALL THE CLEAN UP COSTS THE AVERAGE SUPERFUND SITE COSTS ABOUT TWENTY FIVE MILLION DOLLARS TO CLEAN IF THE FUND RUNS DRY WASHINGTON COULD IMPOSE AN EVEN HIGHER TAX ON THE INSURANCE INDUSTRY SAID JOHN SNYDER SENIOR VICE PRESIDENT FOR A. M. BEST COMPANY NO BIGGER ISSUE FACES THE PROPERTY AND CASUALTY INSURANCE INDUSTRY THAN POLLUTION CLAIMS SAID KIDDER PEABODY AND COMPANY STOCK ANALYST STEVEN GAVIOS HE BELIEVES THE ULTIMATE COSTS FOR THE INSURANCE INDUSTRY WILL RANGE FROM ONE HUNDRED BILLION DOLLARS TO TWO HUNDRED BILLION DOLLARS IN PRETAX DOLLARS OVER THE NEXT SEVERAL YEARS THAT'S A STAGGERING AMOUNT FOR AN INDUSTRY WITH ANNUAL NET INCOME OF TEN BILLION DOLLARS TO FIFTEEN BILLION DOLLARS BY COMPARISION THE INSURERS PAID A TOTAL OF TWENTY TWO BILLION DOLLARS ON HURRICANE AND OTHER CATASTROPHE CLAIMS DURING THE ENTIRE NINETEEN EIGHTIES SOME INSURERS ARE LIKELY TO FAIL BECAUSE OF POLLUTION CLAIMS MR. GAVIOS ESTIMATES BUT STRONGER PLAYERS WILL BE IN A MUCH BETTER SITUATION HE SAID AFTER THE POLLUTION ISSUE IS BEHIND THEM MOST OF THE POLLUTION CLAIMS MADE AGAINST INSURERS ARISE FROM GENERAL LIABILITY POLICIES WRITTEN IN THE NINETEEN FIFTIES NINETEEN SIXTIES AND NINETEEN SEVENTIES INSURERS HAVE TRIED TO DENY PAYMENT ARGUING THAT THEY NEVER ENVISIONED POLLUTION CLAIMS AND THE STRICT ENVIRONMENTAL LAWS POLICYHOLDERS HAVE RESPONDED BY SUING THE INSURANCE COMPANIES AND IN ABOUT HALF THE CASES THEY'VE WON THE ADMINISTRATION'S PLAN WILL TRY TO STREAMLINE THE PROCESS BY CREATING A NO FAULT SYSTEM IN WHICH THE POLLUTERS WOULD TAP THE TRUST FUND FOR PART OF THEIR CLEAN UP COSTS THE AMOUNT THEY'RE ELIGIBLE TO RECEIVE WOULD DEPEND ON THE HISTORY OF CLAIMS DISPUTES IN THEIR STATES IN STATES WHERE SIXTY PERCENT OF THE CASES HAVE BEEN WON BY THE POLLUTERS THE POLLUTER COULD APPLY FOR A SIXTY PERCENT RECOVERY WHERE POLLUTERS WON ONLY TWENTY PERCENT OF THE CASES THEY WOULD BE ELIGIBLE FOR A TWENTY PERCENT RECOVERY THE PROPOSAL DOES CONTAIN ONE SIGNIFICANT CONCESSION TO THE INSURANCE INDUSTRY HOWEVER IF ONE OF ITS POLICYHOLDERS CHOOSES TO USE TRUST FUND MONEY TO CLEAN UP A SITE THE FUND WILL INDEMNIFY THE INSURER FROM CLAIMS BY OTHER POLICYHOLDERS WHO POLLUTED THE SAME SITE A. M. BEST'S MR. SNYDER ADDED THAT WELL RUN INSURERS WHICH ARE FAR ALONG THE ROAD TO SETTLING THEIR BIGGEST POLLUTION CLAIMS MIGHT FIGHT THE TRUST FUND APPROACH BECAUSE IT WOULD PUT THEM INTO THE POSITION OF BAILING OUT INSURERS THAT ARE LESS WELL MANAGED YOU COULD HAVE COMPANIES AT ODDS OVER THIS ISSUE HE SAID THE INTERNAL REVENUE SERVICE IS PLANNING TO AUDIT AS MANY AS TWO HUNDRED MUNICIPAL BOND ISSUES AND IS TRYING TO KEEP THE EFFORT FROM RATTLING INVESTOR CONFIDENCE IN THE MUNI MARKET QUOTE THE MERE FACT THAT AN AUDIT IS UNDER WAY COULD HAVE A SPILL OVER EFFECT ON THE ABILITY OF AN ISSUER TO SELL NEW BONDS QUOTE SAID MARCUS OWENS THE I. R. S. OFFICIAL SPEARHEADING THE AGENCY'S INITIATIVE TO BEEF UP MUNICIPAL BOND ENFORCEMENT THE PLANS FOR AUDITS WERE DISCLOSED BY MR. OWENS ON MONDAY AT AN AMERICAN BAR ASSOCIATION GATHERING IN HOUSTON YESTERDAY HE ELABORATED ON THE AGENCY'S NEW APPROACH TO MUNI ENFORCEMENT AT A MEETING HERE OF THE GOVERNMENT FINANCE OFFICERS ASSOCIATION HE SAID THE AUDITS AIM TO ASSESS THE LEVEL OF VOLUNTARY COMPLIANCE WITH LAWS AND REGULATIONS GOVERNING TAX EXEMPT BONDS SEPARATE AUDITS WILL ADDRESS SPECIFIC SUSPECTED PROBLEMS SAID MR. OWENS WHO ADDED THAT THIRTY SUCH AUDITS ALREADY ARE UNDER WAY AND THAT THE I. R. S. HAS ANOTHER ONE HUNDRED OR SO LEADS OR COMPLAINTS REGARDING SUSPECTED PROBLEM ISSUES THAT NEED TO BE LOOKED INTO MR. OWENS SAID THE AGENCY WILL STRIVE TO LIMIT PROBLEMS FOR BOND ISSUING JURISDICTIONS WHOSE BONDS ARE BEING AUDITED HE NOTED THAT THE TAX CODE'S PENALTY FOR NONCOMPLIANCE IS TO DECLARE THE BONDS TAXABLE AND THAT THE BY THE BOOK REMEDY IS FOR THE AGENCY TO TAX BONDHOLDERS HE SAID THIS IS A FAIRLY DRASTIC STEP BUT ONE THAT THE I. R. S. HAS TAKEN AND WILL TAKE AGAIN BUT THE FAVORED ALTERNATIVE TO TAXING BONDHOLDERS THE I. R. S. OFFICIAL SAID IS FOR THE AGENCY TO ENTER INTO SETTLEMENTS WITH ISSUERS OF BAD BONDS UNDER SUCH AGREEMENTS THE I. R. S. RECEIVES CERTAIN FUNDS AND AGREES TO LEAVE BONDHOLDERS UNSCATHED TO LIMIT ANY ADVERSE SPILL OVER EFFECTS FROM THE DISCLOSURE OF AN AUDIT MR. OWENS SUGGESTED THAT THE I. R. S. AND THE ISSUER COULD MAKE IT CLEAR UP FRONT TO BONDHOLDERS AND POTENTIAL INVESTORS THAT ANY TAX PROBLEMS IDENTIFIED DURING A BOND AUDIT WOULD BE REMEDIED BY A SETTLEMENT NOT BY TAXING BONDHOLDERS MR. OWENS SAID THE I. R. S. IS COMMITTED TO HAVING A VERY REAL ENFORCEMENT PROGRAM AND THE RANDOM AUDIT OF UP TO TWO HUNDRED MUNI ISSUES IS NEEDED TO GET A STATISTICALLY RELIABLE UNDERSTANDING OF THE LEVEL OF VOLUNTARY COMPLIANCE HE SAID THE I. R. S. WON'T DISCLOSE THE EXISTENCE OF SPECIFIC AUDITS BUT NOTED THAT SECURITIES LAW CONSIDERATIONS MAY FORCE BOND ISSUERS TO DISCLOSE THEY'RE BEING AUDITED OR THAT WORD OF THE AUDIT COULD BE LEAKED AND HE SAID SOME INVESTORS COULD SHY AWAY FROM BONDS OF A JURISDICTION BEING AUDITED BY THE I. R. S. THE I. R. S. HAS THE ASSURANCE OF BOND LAWYERS THAT EVERYTHING IS JUST FINE IN TERMS OF MUNI MARKET COMPLIANCE MR. OWENS SAID BUT HE ADDED THAT HE TAKES SUCH ASSURANCES WITH A LARGE GRAIN OF SALT HE EXPLAINED THAT CRITICISM OF THE I. R. S.'S PREVIOUS MUNI ENFORCEMENT EFFORTS BY THE GENERAL ACCOUNTING OFFICE AND THE DESIRES OF I. R. S. COMMISSIONER MARGARET RICHARDSON LED LAST SUMMER TO A COMPLETE REORDERING OF THE AGENCY'S MUNI ENFORCEMENT EFFORTS QUOTE WE ARE MINDING THE STORE NOW QUOTE SAID MICHAEL BAILEY AN I. R. S. OFFICIAL WHO ACCOMPANIED MR. OWENS ADDING THAT QUOTE THERE ARE VERY SIGNIFICANT DOLLARS AT STAKE QUOTE MORE BIG INSTITUTIONAL INVESTORS ARE BEING DRAWN TO THE BIG RISKS AND HEADY RETURNS OF PRIVATE QUOTE HEDGE FUNDS QUOTE AND ONE SIGN OF THE TREND IS AN APPOINTMENT BY BLACKSTONE GROUP INCORPORATED YESTERDAY CLOSELY HELD BLACKSTONE SAID MICHAEL F. HOLLAND JOINED THE INVESTMENT BOUTIQUE AS A GENERAL PARTNER TO EXPAND THE FIRM'S ASSET MANAGEMENT BUSINESS BLACKSTONE IS ONE OF SEVERAL FIRMS THAT ARE VYING TO HELP INSTITUTIONS FUNNEL INVESTMENT DOLLARS INTO AN ARRAY OF HEDGE FUNDS FOR A FEE AN INSTITUTION WILL TURN OVER A SUM TO BLACKSTONE WHICH WILL SPREAD IT AMONG SEVERAL HEDGE FUNDS TO MINIMIZE RISK MR. HOLLAND'S JOB IS TO EXPAND THAT BUSINESS A GREGARIOUS FORTY NINE YEAR OLD HE IS A VETERAN OF SEVERAL SUCCESSFUL ASSET MANAGEMENT BUSINESSES AS VICE CHAIRMAN AT OPPENHEIMER AND COMPANY WHICH HE LEFT IN NOVEMBER MR. HOLLAND ADDED SEVERAL PUBLICLY TRADED CLOSED END FUNDS TO THE FIRM'S MONEY MANAGEMENT BUSINESS PRIOR TO THAT MR. HOLLAND WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE ASSET MANAGEMENT OPERATION SALOMON BROTHERS LAUNCHED IN SPRING NINETEEN EIGHTY NINE BY MARCH NINETEEN NINETY TWO WHEN HE LEFT THE FIRM HAD ATTRACTED FIFTEEN BILLION DOLLARS FROM INSTITUTIONS AND WEALTHY INDIVIDUALS MR. HOLLAND'S BIGGEST COUP DURING HIS TENURE AT SALOMON BROTHERS WAS THE LUCRATIVE CONTRACT TO MANAGE A SEVEN POINT ONE BILLION DOLLAR PORTFOLIO FOR THE RESOLUTION TRUST CORPORATION MUCH OF THAT DISTRESSED SECURITIES FROM THRIFTS TAKEN OVER BY THE FEDERAL AGENCY FROM NINETEEN EIGHTY FOUR TO NINETEEN EIGHTY NINE MR. HOLLAND WAS CHIEF EXECUTIVE OF FIRST BOSTON ASSET MANAGEMENT CORPORATION WHICH HE FOUNDED WHEN THE INVESTMENT BANKING FIRM BOUGHT HIS MONEY MANAGEMENT BUSINESS BLACKSTONE WITH SIX HUNDRED MILLION DOLLARS UNDER MANAGEMENT INCLUDING ONE HUNDRED FORTY MILLION DOLLARS OF PARTNERS' FUNDS IS IN ITS INFANCY COMPARED WITH MORE ESTABLISHED MONEY MANAGEMENT BUSINESSES BUT STEPHEN A. SCHWARZMAN THE FIRM'S PRESIDENT IS CONFIDENT THAT HE CAN ATTRACT ENOUGH FROM PENSION FUNDS AND OTHER INVESTORS TO REACH ONE BILLION DOLLARS UNDER MANAGEMENT WITHIN THE YEAR CURRENTLY BLACKSTONE MONITORS THE PERFORMANCE OF ABOUT EIGHTY HEDGE FUNDS BUT INVESTS IN ONLY TWO DOZEN AT A TIME LAST YEAR THE FIRM RETURNED THIRTY PERCENT FOR ITS FOURTEEN CLIENTS BEFORE SUBTRACTING A ONE POINT TWO FIVE PERCENT MANAGEMENT FEE VENEZUELA'S NEW PRESIDENT RAFAEL CALDERA SAID THE NATION WOULD HAVE TO MAKE SACRIFICES TO OVERCOME ITS DEPENDENCE ON OIL BUT ADDED THAT A RECENTLY IMPOSED VALUE ADDED TAX WAS AN UNJUST BURDEN THAT HE WOULD ATTEMPT TO REPEAL MR. CALDERA WHO CAMPAIGNED AS A POPULIST TAKES OFFICE AT A MOMENT WHEN VENEZUELA'S ECONOMY IS WRACKED BY RECESSION HIGH INFLATION AND A SHAKY BANKING SYSTEM THE VENEZUELAN STOCK MARKET SURGED SEVEN POINT FOUR PERCENT YESTERDAY IN THE WAKE OF HIS INAUGURATION SPEECH A RISE THAT ANALYSTS ATTRIBUTED MORE TO THE BROAD GOALS MR. CALDERA OUTLINED THAN TO THE SPECIFIC PROPOSALS HE PRESENTED IN GENERAL TERMS MR. CALDERA PROMISED TO STRUGGLE QUOTE INCESSANTLY QUOTE AGAINST INFLATION HE SAID HE INTENDED TO PURSUE TRADE LIBERALIZATION PRIMARILY THROUGH RECIPROCAL TRADE AGREEMENTS AND HE PLEDGED GOVERNMENT AUSTERITY INCLUDING A REDUCED BUDGET THIS YEAR BUT MR. CALDERA'S PROPOSAL TO SCALE BACK THE CONTROVERSIAL TEN PERCENT VALUE ADDED TAX RAISED QUESTIONS ABOUT HOW HE INTENDS TO CONTROL THE BUDGET DEFICIT WHICH SWELLED LAST YEAR TO FIVE PERCENT OF GROSS DOMESTIC PRODUCT THAT DEFICIT HAS FUELED SPIRALING PRICES THE VALUE ADDED TAX WHICH WAS PROJECTED TO GENERATE REVENUES ROUGHLY EQUAL TO THREE PERCENT OF G. D. P. WAS DESIGNED TO COMPENSATE FOR BUDGET SHORTFALLS CAUSED BY THE DECLINE IN THE OIL REVENUES THAT HAVE LONG BEEN THE MAINSTAY OF VENEZUELA'S ECONOMY BUT SINCE IT WAS PUT INTO EFFECT LAST OCTOBER THE TAX HAS FACED CHALLENGES IN VENEZUELAN COURTS AND RESISTANCE FROM BOTH BUSINESSES AND CONSUMERS MR. CALDERA SAID THAT HE WOULD SHORTLY PRESENT LEGISLATION TO ELIMINATE THE VALUE ADDED TAX AND REPLACE IT WITH A SALES TAX THAT WOULD BE APPLIED SELECTIVELY AT THE WHOLESALE LEVEL HE ADDED THE REVISION IN THE VALUE ADDED TAX WOULD BE PART OF A BROAD OVERHAUL OF THE TAX SYSTEM THAT WOULD PROVIDE FOR IMPROVED COLLECTION AND HIGHER INCOME TAXES ON THE WEALTHY MANY ANALYSTS WERE DUBIOUS SOME SAID MR. CALDERA'S REVISED LEVY MIGHT ULTIMATELY BEAR A CLOSE RESEMBLANCE TO THE CURRENT VERSION OF THE TAX THEY ADDED THAT IT WAS UNCLEAR WHETHER MR. CALDERA A POLITICAL INDEPENDENT WHOSE LOYALISTS HOLD ONLY FIFTY OF THE ONE HUNDRED NINETY NINE SEATS OF THE LOWER HOUSE OF CONGRESS HAS THE CONGRESSIONAL SUPPORT TO REPEAL THE TAX THE OUTGOING FINANCE MINISTER CARLOS RAFAEL SILVA RECENTLY WARNED CONGRESS THAT A REPEAL OF THE TAX COULD CAUSE THE DEFICIT TO BALLOON TO NINE PERCENT OF G. D. P. EARLIER THIS WEEK MR. CALDERA NAMED HIS CABINET WHICH INCLUDED AS FINANCE MINISTER JULIO SOSA RODRIGUEZ THE CHIEF OF A BANK AND CHEMICAL COMPANY AND THE FORMER VENEZUELAN AMBASSADOR TO THE U. S. UPON BEING NAMED TO THE POST MR. SOSA PLEASED INTERNATIONAL MARKETS BY IDENTIFYING INFLATION AS THE COUNTRY'S MAJOR PROBLEM NEVERTHELESS SOME IN VENEZUELA VIEW MR. SOSA AS BEING ALIGNED WITH PROTECTIONIST INTERESTS WITHIN THE BUSINESS COMMUNITY WHILE WALL STREET REACTED FAVORABLY TO THE CABINET SOME ANALYSTS BASED IN VENEZUELA TENDED TO TAKE A LESS SANGUINE VIEW OF THE CALDERA TEAM THE CABINET BASICALLY IS MADE UP OF PEOPLE WHO ARE NOT VERY MARKET ORIENTED AND NOT PARTICULARLY EXPERIENCED AT RUNNING A GOVERNMENT SAYS ROBERT BOTTOME AN ECONOMIC ANALYST IN CARACAS OPERATORS OF THE PERRY NUCLEAR POWER PLANT NEAR CLEVELAND SETTLED THEIR LAWSUIT WITH GENERAL ELECTRIC COMPANY APPARENTLY ENDING A WAVE OF LITIGATION THAT HAD SOUGHT BILLIONS OF DOLLARS IN DAMAGES FROM G. E. FOR A DEFECTIVE CONTAINMENT VESSEL DESIGN TERMS CALL FOR G. E. TO MAKE A CASH PAYMENT AND PROVIDE DISCOUNTS ON QUOTE FUTURE PURCHASES QUOTE TO CENTERIOR ENERGY CORPORATION'S CLEVELAND ELECTRIC ILLUMINATING COMPANY AND TOLEDO EDISON COMPANY UNITS OHIO EDISON COMPANY AND ITS PENNSYLVANIA POWER COMPANY UNIT AND DUQUESNE LIGHT COMPANY THE AMOUNT OF THE CASH PAYMENT WASN'T DISCLOSED CITING A CONFIDENTIALITY AGREEMENT THE UTILITIES WOULDN'T SAY HOW CLOSE THE SETTLEMENT CAME TO INITIAL DAMAGE ESTIMATES A NINETEEN EIGHTY EIGHT OHIO STUDY CITED BY THE PERRY UTILITIES HAD SAID G. E.'S DESIGN ERRORS CREATED HUNDREDS OF MILLIONS OF DOLLARS OF EXCESS COSTS THEIR SUIT FILED IN FEDERAL COURT IN CLEVELAND IN NINETEEN NINETY ONE HADN'T SPECIFIED DAMAGES BUT ALLEGED BREACH OF CONTRACT AND FRAUD AND ASKED THAT ANY AWARD BE TREBLED THE UTILITIES DON'T EXPECT A MATERIAL IMPACT ON THEIR RESULTS BECAUSE THE PAYMENTS AND DISCOUNTS WILL BE RECORDED OVER A PERIOD OF YEARS THEY SAID G. E. WILL MAKE OUTLAYS TO THE FIVE ACCORDING TO THEIR OWNERSHIP OF THE PERRY PLANT THE CENTERIOR COMPANIES HAVE A FIFTY ONE PERCENT INTEREST THIRTY FIVE PERCENT IS OWNED BY OHIO EDISON AND PENNSYLVANIA POWER AND DUQUESNE LIGHT HAS FOURTEEN PERCENT G. E. SAID THE SETTLEMENT RESULTS IN THE PRESERVATION OF OUR RELATIONSHIP WITH A VALUED CUSTOMER A SPOKESMAN SAID THERE WEREN'T ANY SUITS REMAINING OVER THE CONTAINMENT VESSEL ISSUE AMONG OPERATORS OF THE THIRTY NINE SO CALLED BOILING WATER REACTORS IT HAS BUILT IN THE U. S. HE WOULDN'T ESTIMATE THE FAIRFIELD CONNECTICUT COMPANY'S TOTAL SETTLEMENT COSTS THE PROBLEMS WITH ITS STEEL REINFORCED CONTAINMENT VESSELS SURFACED WHEN G. E. REPORTED IN NINETEEN SEVENTY FOUR THAT CERTAIN ACCIDENTS COULD DAMAGE THE STRUCTURES DESIGNED TO HOLD THE NUCLEAR FUEL IMMERSED IN WATER AND CREATE STEAM TO DRIVE TURBINES AND MAKE ELECTRICITY UTILITIES THAT HAD BOUGHT THE G. E. SYSTEMS CONTENDED THAT IN AN EARLY G. E. DESIGN AN EMERGENCY SHUTDOWN CHANNELING STEAM INTO SUPPRESSION POOLS UNDER THE CONTAINMENT VESSEL COULD CREATE VIOLENT WAVES THAT WOULD DAMAGE IT G. E. MAINTAINED THAT THE DESIGN PROBLEMS REFLECTED NUCLEAR REGULATORY COMMISSION REQUIREMENTS THAT HAD TAKEN EFFECT AFTER THE PLANTS WERE BUILT BUT A NUMBER OF UTILITIES CONTENDED THAT G. E. KNEW OF DESIGN FLAWS BEFORE IT SOLD THE PLANTS SAFETY WASN'T AN ISSUE IN THE DISPUTES BUT RATHER WHO WOULD PAY FOR REPAIRS THAT WERE MADE TO CONTAINMENT VESSELS TO PREVENT THE POTENTIAL PROBLEM G. E. HAS BEEN ABLE TO KEEP SETTLEMENT TERMS SECRET IN SEVERAL AGREEMENTS WITH UTILITIES AROUND THE COUNTRY IN MARCH NINETEEN NINETY TWO WASHINGTON PUBLIC POWER SUPPLY SYSTEM SETTLED A LAWSUIT THAT HAD SOUGHT ONE POINT TWO BILLION DOLLARS WITHOUT TERMS BEING DISCLOSED LONG ISLAND LIGHTING COMPANY ALSO SETTLED A SUIT THAT HAD SOUGHT FOUR HUNDRED MILLION DOLLARS IN JUNE NINETEEN NINETY ONE IN THE SAME MONTH HOWEVER PENNSYLVANIA POWER AND LIGHT COMPANY VALUED ITS SETTLEMENT FROM G. E. AT EIGHTY MILLION DOLLARS IN CASH SERVICES AND DISCOUNTS AND ILLINOIS POWER COMPANY WHICH SETTLED WITH G. E. WITHOUT FILING SUIT VALUED ITS PACKAGE OF DISCOUNTS ON G. E. EQUIPMENT SERVICES AND FUEL PURCHASES AT SIXTY FIVE MILLION DOLLARS DOES SHE OR DOESN'T SHE CHANCES ARE EXCELLENT THAT SHE DOES AT HOME SALES OF AT HOME HAIR COLOR ARE RISING DRIVEN IN PART BY YOUTH OBSESSED BABY BOOMERS QUOTE THIS IS A GENERATION OF PEOPLE WHO ARE ACCUSTOMED TO LOOKING AS GOOD AS THEY CAN POSSIBLY LOOK QUOTE SAYS MARY ATHERTON EDITOR OF MODERN SALON MAGAZINE ALCIRA ESPARRAGOZA IS ONE SUCH PERSON A FORTY YEAR OLD EMPLOYEE OF A NEW YORK FINANCIAL SERVICES COMPANY SHE COLORS HER BROWN HAIR A NATURAL REDDISH BLOND EVERY FEW WEEKS BECAUSE IT JUST MAKES YOUR LIFE BETTER SHE SAYS TO MS. ESPARRAGOZA REVEALING GRAY HAIR IS SIMPLY UNACCEPTABLE HAIR COLOR SALES IN SUPERMARKETS DRUGSTORES AND MASS MERCHANDISE OUTLETS ROSE FOURTEEN POINT FOUR PERCENT IN THE YEAR ENDED NOVEMBER FOURTEENTH ACCORDING TO INFORMATION RESOURCES INCORPORATED A CHICAGO BASED RESEARCH FIRM AND DEMOGRAPHICS INDICATE THE TREND WILL CONTINUE THE NUMBER OF WOMEN IN THEIR FORTIES WILL RISE BY TWENTY SEVEN PERCENT IN THE NEXT DECADE REACHING TWENTY TWO POINT FOUR MILLION IN TWO THOUSAND THREE ACCORDING TO THE CENSUS BUREAU SALES FOR MEN'S PRODUCTS ARE RISING TOO ALTHOUGH THEY STILL REPRESENT ONLY EIGHT PERCENT OF THE MARKET ACCORDING TO INFORMATION RESOURCES PERSONAL CARE COMPANIES ARE RIDING THE TREND BY AGGRESSIVELY PROMOTING A STREAM OF SEMIPERMANENT PRODUCTS LIKE CLAIROL'S GLINTS CONDITIONING COLOR ENHANCER THAT COME IN A SINGLE BOTTLE AND WASH AWAY AFTER SIX SHAMPOOS L'OREAL THE HAIR CARE DIVISION OF COSMAIR INCORPORATED INTRODUCED CASTING LAST SPRING A PRODUCT THAT COVERS GRAY BUT WEARS AWAY AFTER SIX WEEKS BUT AREN'T CONTEMPORARY WOMEN SUPPOSED TO BE EMBRACING THE NATURAL LOOK YES BUT THEIR DEFINITION OF NATURAL HAS CHANGED SAYS LILLIAN MARESCH WHO RESEARCHES ATTITUDES OF BABY BOOMERS AT GENERATION INSIGHTS A MARKETING CONSULTING FIRM IN TONKA BAY MINNESOTA THE NEW PRODUCTS ALLOW WOMEN TO APPEAR TO SLOW RATHER THAN ARREST THE AGING PROCESS WOMEN ARE LOOKING TO PERHAPS MINIMIZE WITHOUT TOTALLY OBLITERATING THE SIGNS OF GRAY MS. MARESCH SAYS THAT ALLOWS THEM TO FEEL THEY'RE AGING GRACEFULLY SHE ADDS THESE DAYS THE TRICK TO A HAIR COLOR'S SUCCESS IS HOW LITTLE IT DOES SAYS JOE CAMPINELL SENIOR VICE PRESIDENT AND GENERAL MANAGER OF L'OREAL QUOTE IT MAY NOT NECESSARILY DO AS MUCH AS YOU WANT IT TO BUT IT NEVER DOES MORE THAN YOU WANT IT TO QUOTE HE SAYS AND THAT HE BELIEVES HAS ENCOURAGED MORE TIMID CONSUMERS TO TRY THE PRODUCT THE POPULARITY OF CASTING HELPED BOOST L'OREAL'S SALES OF HAIR COLORING PRODUCTS BY TWENTY ONE POINT EIGHT PERCENT TO TWO HUNDRED FIFTY TWO POINT FIVE MILLION DOLLARS LAST YEAR POSTING HIGHER GROWTH THAN BRISTOL MYERS SQUIBB COMPANY'S CLAIROL THE MARKET LEADER ACCORDING TO INFORMATION RESOURCES MADELINE SOLANO TWENTY FIVE SAYS HER HEART BEATS FASTER EVERY TIME SHE GETS READY TO USE THE PERMANENT ASH BROWN THAT SHE SAYS MATCHES HER COMPLEXION I NEVER LEAVE THE STUFF ON FOR MORE THAN TEN MINUTES SHE SAYS EVEN THOUGH THE DIRECTIONS RECOMMEND TWENTY FIVE MANUFACTURERS SAY EVEN OLD STYLE PERMANENT COLOR TODAY IS LESS MESSY AND SMELLY AND MORE NATURAL LOOKING THAN IT USED TO BE SUBTLE RESULTS THEY SAY CAN BE ACHIEVED BY CHOOSING THE PERFECT MATCH FROM AMONG AS MANY AS FORTY SHADES WITH SUCH NAMES AS NATURAL HONEYCOMB OR EXTRA LIGHT BEIGE BLONDE IN A PRODUCT LINE STILL APPLICATION CAN BE DAUNTING AFTER MIXING LIQUIDS FROM TWO DIFFERENT BOTTLES THE FORMULA IS APPLIED TO DRY HAIR AND LATHERED LIKE SHAMPOO INDUSTRY OBSERVERS SAY THE GENERAL INTEREST IN COLORING HAIR IS HELPING SALONS TOO BUT SOME INDIVIDUAL SALON OWNERS DISAGREE JOSEPH CIONE WHO OWNS A CHAIN OF HAIR SALONS IN NEW YORK SAYS HE SUSPECTS SOME FORMER CLIENTS NOW HEAD STRAIGHT FOR THE DRUGSTORE AT ABOUT FIVE DOLLARS A BOTTLE AT HOME KITS ARE MUCH CHEAPER THAN A SALON TREATMENT WHICH CAN COST UP TO ONE HUNDRED TWENTY FIVE DOLLARS AFTER NOTICING A TEN PERCENT DROP IN THE NUMBER OF CUSTOMERS REQUESTING HAIR COLORING MR. CIONE SAYS HE DECIDED TO MAIL HIS CUSTOMERS COUPONS DISCOUNTING BY TEN DOLLARS HIS FIFTY FIVE DOLLAR HAIR COLORING FEE TO BE SAFE MARKETERS AREN'T JUST COUNTING ON BABY BOOMERS FOR GROWTH ANOTHER PROMISING TARGET FOR HAIR COLOR MANUFACTURERS IS YOUNGER WOMEN LIKE MS. SOLANO IF CONSUMERS START USING HAIR COLORING BEFORE THEY GO GRAY THEY'LL REALIZE THAT USING A HAIR COLORING ISN'T SUCH A BIG DEAL SAYS L'OREAL'S MR. CAMPINELL CLAIROL WHICH UNTIL NOW HAS FOCUSED MAINLY ON PRODUCTS THAT CONCEAL GRAY HOPES TO CAPTURE WOMEN IN THEIR TEENS AND TWENTIES WITH GLINTS WHICH IT LAUNCHED LAST SUMMER THE COLORING PRODUCT WASHES OUT AFTER SIX TO EIGHT SHAMPOOS IT'S LIKE USING HAIR COLOR ALMOST AS A COSMETIC SAYS RUSTY PIERCE CLAIROL'S VICE PRESIDENT OF CONSUMER MARKETING THE FASHION WORLD IS EMBRACING THE ARTIFICIAL TOO CLAIROL NOTES THAT MANY DESIGNERS AT A RECENT FASHION SHOW IN NEW YORK COLORED THEIR MODELS' HAIR BLOND IS THE COLOR OF THE MOMENT BUT LINDA WELLS EDITOR OF ALLURE FASHION MAGAZINE PREDICTS A REVIVAL OF FROSTED HAIR A PARTICULARLY ARTIFICIAL STYLE POPULAR IN THE NINETEEN SEVENTIES FEATURING ALTERNATING STRANDS OF DARK AND LIGHT HAIR DURIRON COMPANY CITING STRONG SHIPMENTS AND EARNINGS SAID IT EXPECTS TO SIGNIFICANTLY EXCEED ANALYSTS' PROFIT ESTIMATES FOR THE FOURTH QUARTER ANALYSTS' ESTIMATES FOR THE QUARTER RANGED FROM THIRTY FIVE CENTS TO FORTY CENTS WITH A CONSENSUS OF THIRTY SEVEN CENTS THE DAYTON OHIO COMPANY SAID ITS QUOTE MANUFACTURING AND SHIPPING VOLUMES QUOTE FROM ITS NORTH AMERICAN OPERATIONS QUOTE COMBINED WITH EFFECTIVE CONTROL OF COSTS AND ASSETS QUOTE ENABLED DURIRON TO CAPITALIZE ON THE INVESTMENTS MADE IN MANUFACTURING THE COMPANY PLANS TO RELEASE ITS NINETEEN NINETY THREE RESULTS ON FEBRUARY TENTH FOR THE YEAR AGO FOURTH QUARTER THE COMPANY EARNED FIVE HUNDRED TWENTY SIX THOUSAND DOLLARS OR FOUR CENTS A SHARE INCLUDING A RESTRUCTURING CHARGE OF THREE POINT EIGHT MILLION DOLLARS OR THIRTY CENTS A SHARE DURIRON MAKES CORROSIVE RESISTANT EQUIPMENT PUMPS VALVES AND OTHER FLUID HANDLING EQUIPMENT D. RANDY LANEY A FORMER WAL MART STORES INCORPORATED TREASURER WAS PROMOTED TO CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RALLY'S HAMBURGERS INCORPORATED SUCCEEDING BURT SUGARMAN MR. SUGARMAN THE TROUBLED FAST FOOD CHAIN'S BIGGEST SHAREHOLDER SAID HE CHOSE TO STEP DOWN FROM THE TOP JOBS AT RALLY'S BUT REMAINS A DIRECTOR QUOTE WHEN I SAW THE PROFESSIONAL MANAGERIAL SKILLS RANDY HAS I FELT HE WAS MORE SUITED TO DO THAT THAN I WAS QUOTE MR. SUGARMAN SAID HE SAID HE CONSIDERED STAYING ON AS VICE CHAIRMAN BUT IT WOULD LOOK LIKE I WASN'T LETTING GO THAT'S NOT THE CASE HE IS GOING TO RUN THE COMPANY PERIOD ANALYSTS SAID MR. SUGARMAN'S FAST GROWTH APPROACH HAD LARGELY FAILED HE OPENED STORES TOO FAST AND DIDN'T FOCUS ENOUGH ATTENTION ON SITE SELECTION AND EVEN MORE IMPORTANTLY HIRING TRAINING AND PROVIDING INCENTIVES TO UNIT LEVEL MANAGEMENT SAID BRYAN ELLIOTT AN ANALYST WITH ROBINSON HUMPHREY COMPANY ATLANTA MR. ELLIOTT NOTED THAT IN NINETEEN NINETY THREE RALLY'S STOCK WENT FROM A HIGH OF TWENTY FOUR POINT ONE TWO FIVE DOLLARS TO A LOW OF EIGHT DOLLARS LATE LAST YEAR IN RECENT WEEKS IT HAS RALLIED TRADING AROUND ELEVEN DOLLARS TO TWELVE DOLLARS IN NASDAQ STOCK MARKET TRADING YESTERDAY RALLY'S WAS UNCHANGED AT ELEVEN POINT EIGHT SEVEN FIVE DOLLARS A SHARE MR. LANEY THIRTY EIGHT YEARS OLD WAS RECRUITED FROM WAL MART IN SEPTEMBER TO TURN AROUND RALLY'S WHOSE SAME STORE SALES AND INCOME HAD BEEN SLIPPING MR. LANEY WHO JOINED RALLY'S AS SENIOR EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IS CONSIDERED BY ANALYSTS AS SOFTSPOKEN AND BRAINY WITH EXTENSIVE RETAIL EXPERIENCE MR. SUGARMAN BY CONTRAST IS A PROMOTER A BIG PICTURE RATHER THAN DETAIL ORIENTED EXECUTIVE SAID MR. ELLIOTT THE ANALYST THE FIFTY FOUR YEAR OLD MR. SUGARMAN IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GIANT GROUP LIMITED HARLEYVILLE S. C. WHICH HAS CEMENT AS WELL AS RECYCLING AND RESOURCERECOVERY BUSINESSES MR. SUGARMAN A ONE TIME MOVIE PRODUCER IS BASED IN BEVERLY HILLS CALIFORNIA AND MARRIED TO MARY HART CO HOST OF THE SYNDICATED ENTERTAINMENT TONIGHT TELEVISION PROGRAM MR. SUGARMAN MS. HART AND GIANT GROUP OWN MORE THAN FORTY ONE PERCENT OF RALLY'S COMMON SHARES OUTSTANDING SAID BRUCE LEY EXECUTIVE VICE PRESIDENT OF MARKETING THE PROBLEMS AT RALLY'S HAVE FORCED GIANT GROUP TO TAKE NONCASH CHARGES OF ONE POINT TWO MILLION DOLLARS ACCORDING TO A REPORT BY STEPHEN D. WEINRESS OF INVESTMENT BANKER L. H. FRIEND WEINRESS AND FRANKSON INCORPORATED IRVINE CALIFORNIA MR. SUGARMAN SAID HE OWNS ABOUT FORTY PERCENT OF GIANT GROUP'S STOCK RALLY'S HAS BEEN HURT BY THE BURGERCHAIN PRICE WARS POORLY CHOSEN LOCATIONS AND INATTENTION TO SUCH DETAILS AS CLEANLINESS A PROBLEM COMPOUNDED BY NEARLY DOUBLING THE NUMBER OF RESTAURANTS TO FIVE HUNDRED TWENTY ONE SINCE NINETEEN NINETY ACCORDING TO ANALYSTS UNLIKE TRADITIONAL BURGER JOINTS RALLY'S CATERS MAINLY TO TAKE OUT CUSTOMERS WITH TWO DRIVE THROUGH WINDOWS AND PATIO SEATING BUT NO INDOOR SEATING THE MENU IS LIMITED FEATURING HAMBURGERS COATED FRENCH FRIES AND SOFT DRINKS REPRESENTATIVE JOHN DINGELL ASKED THE FEDERAL RESERVE BOARD AND THE SECURITIES AND EXCHANGE COMMISSION TO INVESTIGATE WHETHER CITIBANK AND BANK OF AMERICA BROKE ANY U. S. LAWS IN THEIR ROLES IN A ONE POINT FOUR BILLION DOLLAR SECURITIES SCANDAL IN INDIA MR. DINGELL CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE ASKED FOR REPORTS ON THE FINDINGS FROM FED CHAIRMAN ALAN GREENSPAN AND S. E. C. CHAIRMAN ARTHUR LEVITT THE MICHIGAN DEMOCRAT ALSO ASKED WHETHER THE FED AND S. E. C. CURRENTLY RECEIVE QUOTE SUFFICIENT INFORMATION ON THE FOREIGN SECURITIES ACTIVITIES OF U. S. BANKS AND COOPERATION FROM FOREIGN REGULATORS TO CONDUCT ADEQUATE SURVEILLANCE AND ENFORCEMENT QUOTE CITIBANK AND BANK OF AMERICA WERE NAMED LAST DECEMBER IN A REPORT BY AN INDIAN PARLIAMENTARY COMMITTEE THAT INVESTIGATED THE NINETEEN NINETY TWO SCANDAL OFFICIALS WITH THE BANKS' PARENT COMPANIES CITICORP AND BANKAMERICA CORPORATION HAVE DENIED ANY WRONGDOING THE REPORT ALLEGED THAT BANK OF AMERICA AND CITIBANK ALONG WITH STANDARD CHARTERED BANK A UNIT OF STANDARD CHARTERED P. L. C. AND A. N. Z. GRINDLAYS A UNIT OF A. N. Z. BANKING GROUP WERE DEEPLY INVOLVED IN IRREGULARITIES IN SECURITIES TRANSACTIONS AND THAT THEY ALL FAILED TO FOLLOW PROCEDURES OF INTERNAL CONTROL THE SCANDAL REVOLVED AROUND THE DIVERSION OF BANK FUNDS INTO THE STOCK MARKET USING FORGED OR FICTITIOUS RECEIPTS FOR SECURITIES THE INJECTION OF MONEY SET THE MARKET ON AN UNPRECEDENTED BULL RUN BEFORE THE MARKET CRASHED WHEN THE SCANDAL WAS EXPOSED STATE SECURITIES REGULATORS ARE EXAMINING WAYS OF PRODDING BROKERAGE FIRMS TO TELL INVESTORS MORE ABOUT INVESTMENTS BEFORE INVESTORS MAKE THEM AMONG THE PROPOSALS TO BE CONSIDERED BY A NEWLY FORMED DISCLOSURE REFORM COMMITTEE OF STATE REGULATORS IS ONE REQUIRING FIRMS TO PROVIDE PROSPECTUSES ABOUT PARTNERSHIPS AND OTHER INVESTMENTS AT THE TIME INVESTORS BUY THEM NOT SEVERAL DAYS LATER WITH THEIR TRADE CONFIRMATION SLIPS QUOTE THERE'S A HYPOCRISY IN DELIVERING THE DISCLOSURE DOCUMENT WITH THE CONFIRM QUOTE SAYS NANCY SMITH NEW MEXICO'S SECURITIES DIRECTOR WHO IS HEADING UP THE STATE REGULATORS' COMMITTEE WHEN RECEIVING A PROSPECTUS AFTER THE SALE SHE SAYS WHAT YOU KNOW IS WHETHER YOU MADE A GOOD DEAL OR WHETHER OR NOT YOU BOUGHT A LAWSUIT INDEED CONSIDERING HOW LATE INVESTORS SOMETIMES RECEIVE A PROSPECTUS SOME HAVE SUGGESTED THAT THE DISCLOSURE DOCUMENT INSTEAD BE CALLED A RETROSPECTUS THE REGULATORS' MOVE TO BUTTRESS BROKERAGE DISCLOSURE STEMS FROM THE SCANDAL AT PRUDENTIAL SECURITIES INCORPORATED A UNIT OF PRUDENTIAL INSURANCE COMPANY OF AMERICA WHICH HAS BEEN ACCUSED OF WIDESPREAD FRAUD IN SELLING EIGHT POINT ONE FIVE BILLION DOLLARS OF PARTNERSHIPS AMONG THE PROBLEMS RAISED IN THE PRUDENTIAL MESS WAS THAT BROKERS ROUTINELY SOLD RISKY PARTNERSHIPS BASED SOLELY ON ROSY SALES SCRIPTS AND DIDN'T RELY ON THE PROSPECTUS A STATE REGULATORY SURVEY OF TWENTY TWO THOUSAND PRUDENTIAL PARTNERSHIP INVESTORS LAST YEAR SHOWED THAT JUST FIFTEEN PERCENT SAID THEY RECEIVED THE PROSPECTUS BEFORE MAKING A DECISION TO BUY THE PARTNERSHIPS MOREOVER FORMER PRUDENTIAL BROKERS HAVE TESTIFIED IN VARIOUS COURT CASES THEY WERE TOLD NOT TO RELY ON THE PROSPECTUS FOR FEAR INVESTORS WOULD SHUN THE PARTNERSHIPS RETAIL CUSTOMERS WOULD NOT READ OR UNDERSTAND PROSPECTUSES AND WOULD BE SO CONFUSED THAT THEY WOULD NOT PURCHASE PARTNERSHIPS ACCORDING TO AFFIDAVITS FILED IN VARIOUS COURT CASES FROM ABOUT THREE DOZEN FORMER PRUDENTIAL BROKERS THE REGULATORS' DISCLOSURE COMMITTEE FORMED LAST MONTH ISN'T EXPECTED TO PROPOSE RECOMMENDATIONS UNTIL LATE THIS YEAR AMONG THE OPTIONS FOR THE COMMITTEE IS TO CHANGE STATES' SECURITIES REGULATIONS OR THE GUIDELINES OF THE NORTH AMERICAN SECURITIES ADMINISTRATORS ASSOCIATION A STATE REGULATORS' UMBRELLA ORGANIZATION SPONSORING THE COMMITTEE THE DISCLOSURE GROUP ALSO COULD ADVOCATE FEDERAL LEGISLATION INDEED COMMITTEE MEMBERS SAY THEY ARE WORKING CLOSELY WITH THE SECURITIES AND EXCHANGE COMMISSION ON THE MATTER UNDER FEDERAL SECURITIES LAW INVESTORS TECHNICALLY HAVE ONE YEAR TO TRY TO RESCIND A TRADE IF THEY DISCOVER THAT THE DATA IN THE PROSPECTUS CONFLICT WITH WHAT THEIR BROKER TOLD THEM BUT MANY INVESTORS DON'T BOTHER TO READ PROSPECTUSES WHICH TYPICALLY RUN FIFTY TO THREE HUNDRED PAGES AND ARE STEEPED IN TECHNICAL LANGUAGE SO DENSE THAT SOME SECURITIES LAWYERS CAN'T EASILY UNDERSTAND THEM LAST YEAR'S STATE SURVEY SHOWED THAT JUST SIX PERCENT OF PRUDENTIAL PARTNERSHIP INVESTORS SURVEYED CAREFULLY READ THE PROSPECTUS AMONG OTHER POTENTIAL PROPOSALS BY THE DISCLOSURE COMMITTEE IS SIMPLIFYING PROSPECTUSES TO MAKE THEM MORE READABLE THE COMMITTEE ALSO IS LOOKING INTO REQUIRING THAT BROKERAGE FIRMS INCLUDE THE NATURE OF THE INVESTMENT AND ALL FEES ON TRADE CONFIRMATION STATEMENTS ONE POSSIBILITY BEING DISCUSSED FOR INSTANCE IS LANGUAGE ON THE CONFIRMATION STATEMENT THAT SAYS THE INVESTMENT HAS BEEN APPROVED FOR EITHER CONSERVATIVE OR SPECULATIVE INVESTORS THIS WOULD BE A FLAG FOR INVESTORS TO SAY WAIT A MINUTE MY BROKER SAID THIS WAS SAFE AND THIS CONFIRM SAYS IT'S SPECULATIVE SAYS THOMAS R. GRADY A NAPLES FLORIDA PLAINTIFFS' LAWYER WHO WAS ASKED TO SERVE AS AN ADVISER TO THE STATE COMMITTEE ANOTHER RECOMMENDATION THE COMMITTEE IS LIKELY TO CONSIDER IS REQUIRING THAT FIRMS INCLUDE ALL FEES ON THE CONFIRMATION SLIPS THERE'S NEVER A SPOT WHERE YOU ACTUALLY SEE WHAT PROPORTION OF A DOLLAR INVESTED IS GOING TOTALLY TO FEES SAYS MS. SMITH THE COMMITTEE CHIEF THE PRACTICE OF BROKERAGE FIRMS PROVIDING PROSPECTUSES AFTER THE SALE HAS EVOLVED DURING THE PAST SEVERAL YEARS QUOTE IN MOST SALES MADE PRIOR TO ABOUT EIGHTY SIX OR EIGHTY SEVEN PROSPECTUSES WERE DELIVERED WITH THE SALES PITCH QUOTE SAYS CHARLES BENNETT DIRECTOR OF CORPORATE FINANCING AT THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SINCE THEN HE SAYS A LOT OF THE WALL STREET FIRMS STARTED LOOKING FOR WAYS TO CONDUCT BUSINESS OVER THE PHONE IN SELLING PARTNERSHIPS CANADIAN WHEAT STOCKS TOTALED ONE POINT OH TWO BILLION BUSHELS AT DECEMBER THIRTY FIRST A TWO PERCENT INCREASE FROM ONE BILLION BUSHELS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE STOCKS ON FARMS AND AT ELEVATORS AND OTHER COMMERCIAL LOCATIONS INCLUDED ONE HUNDRED THIRTY SEVEN POINT ONE MILLION BUSHELS OF DURUM WHEAT A ONE POINT THREE PERCENT DECLINE FROM ONE HUNDRED THIRTY EIGHT POINT NINE MILLION A YEAR EARLIER DURUM WHEAT IS USED TO MAKE PASTA PRODUCTS RAPESEED STOCKS AT DECEMBER THIRTY FIRST TOTALED ONE HUNDRED FIFTY POINT EIGHT MILLION BUSHELS A TWENTY EIGHT PERCENT INCREASE FROM ONE HUNDRED EIGHTEEN POINT ONE MILLION A YEAR EARLIER RAPESEED ALSO KNOWN AS CANOLA IS CANADA'S BIGGEST OIL SEED CROP FAST GROWING COMPUSA INCORPORATED ANNOUNCED A SERIES OF MOVES TO GET A HANDLE ON ITS EXPENSES RESULTING IN A LOSS FOR THE FISCAL SECOND QUARTER AND A THIRTEEN PERCENT JUMP IN THE COMPANY'S STOCK PRICE THE COMPUTER SUPERSTORE CHAIN'S STEPS INCLUDE REORGANIZING AND CONSOLIDATING ITS MANAGEMENT STRUCTURE RESULTING IN THE DISMISSAL OF AN UNSPECIFIED NUMBER OF EXECUTIVES IN AN INTERVIEW COMPUSA'S CHIEF EXECUTIVE OFFICER JAMES F. HALPIN SAID THE JOB CUTS RANGE FROM THE STORE LEVEL TO A QUOTE VERY SENIOR QUOTE RANK NEVERTHELESS COMPUSA SAID IT PLANS TO CONTINUE ITS RAPID EXPANSION AND PREDICTED A QUICK RETURN TO WHAT IT CALLED ACCEPTABLE PROFITABILITY IN THE CURRENT QUARTER THE MOVES SENT COMPUSA STOCK SURGING TWO POINT THREE SEVEN FIVE DOLLARS TO TWENTY POINT ONE TWO FIVE DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY FOR THE QUARTER ENDED DECEMBER TWENTY FIFTH THE COMPANY POSTED A LOSS OF FIVE POINT FIVE MILLION DOLLARS OR THIRTY CENTS A SHARE AFTER A NINE POINT NINE MILLION DOLLAR PRETAX RESTRUCTURING CHARGE A YEAR EARLIER COMPUSA EARNED THREE MILLION DOLLARS OR SIXTEEN CENTS A SHARE REVENUE SURGED SIXTY FIVE PERCENT IN THE LATEST QUARTER TO FIVE HUNDRED THIRTY SIX POINT NINE MILLION DOLLARS FROM THREE HUNDRED TWENTY FOUR POINT FIVE MILLION DOLLARS A YEAR EARLIER THE MOVES UNVEILED YESTERDAY MARK THE FIRST MAJOR STEPS BY MR. HALPIN WHO BECAME C. E. O. IN DECEMBER SUCCEEDING NATHAN P. MORTON WHO RESIGNED AS CHAIRMAN AND C. E. O. AMID DISSATISFACTION WITH THE COMPANY'S PROFITABILITY MR. HALPIN IS OBVIOUSLY TAKING A SCALPEL TO THE COMPANY'S EXPENSES SAID RETAILING CONSULTANT DAVID GOLDSTEIN OF CHANNEL MARKETING CORPORATION HE'S A BOTTOM LINE DRIVEN MANAGER THE RETAILER DECIDED TO TRANSFER ITS MANUFACTURING OPERATION WHICH MAKES THE COMPANY'S PRIVATE LABEL COMPUDYNE BRAND OF PERSONAL COMPUTERS TO ACER AMERICA OF SAN JOSE CALIFORNIA A UNIT OF TAIWAN'S ACER GROUP IT DIDN'T GIVE DETAILS ABOUT THE MOVE THE COMPUDYNE BRAND ACCOUNTS FOR A LITTLE LESS THAN TEN PERCENT OF COMPUSA'S SALES MR. HALPIN SAID THE COMPANY ALSO DECIDED TO CENTRALIZE PART OF ITS INVENTORY MANAGEMENT AND TO SUSPEND FOR EIGHTEEN TO TWENTY FOUR MONTHS ITS SEARCH FOR SITES TO OPEN STORES IN FOREIGN COUNTRIES COMPUSA WHICH HAS SEVENTY SUPERSTORES SAID IT STILL PLANS TO ADD TWELVE STORES DURING THE REST OF THE FISCAL YEAR FOR A TOTAL OF THIRTY NEW OUTLETS FOR THE YEAR IN FISCAL NINETEEN NINETY FIVE IT PLANS TO OPEN ANOTHER THIRTY STORES MR. HALPIN EMPHASIZED THAT THE COMPANY ISN'T CLOSING ANY STORES OUR MODEL WORKS OUR CONCEPT WORKS HE SAID WE LET EXPENSES GET AHEAD OF OURSELVES JAMES M. MEYER AN ANALYST AT JANNEY MONTGOMERY SCOTT INCORPORATED IN PHILADELPHIA SAID COMPUSA'S COST CUTTING STEPS ARE QUOTE HOPEFUL SIGNS QUOTE BUT HE ADDED THEY STILL HAVE A WAYS TO GO THE EUROPEAN UNION'S HIGHEST COURT IN A VICTORY FOR CLINIQUE COSMETICS SAID THE PRODUCTS CAN BE SOLD IN GERMANY WITHOUT ALTERING THE BRAND NAME ESTEE LAUDER COMPANIES HAS LONG SOLD THE LINE AS LINIQUE IN GERMANY WHICH CLAIMED THE CLINIQUE NAME COULD DECEIVE CONSUMERS INTO BELIEVING THE PRODUCTS HAVE MEDICINAL QUALITIES WHEN THE COMPANY MOVED TO USE THE CORRECT NAME TO REDUCE MARKETING AND ADVERTISING COSTS A TRADE GROUP FILED A CHALLENGE BUT THE E. U. COURT SAID THE PRODUCTS ARE SOLD ONLY IN GERMAN PERFUMERIES AND DEPARTMENT STORES NOT IN PHARMACIES AND EVERYWHERE ELSE UNDER THE CLINIQUE NAME WITHOUT HURTING CONSUMERS UNDER GERMAN CASE LAW ON CONSUMER PROTECTION DECEPTION IS ASSUMED IF ONLY FIVE PERCENT TO TEN PERCENT OF CONSUMERS WOULD BE MISLED ABOUT A PRODUCT'S HEALTH IMPLICATIONS THE E. U. HAS LONG ARGUED WITH GERMANY ABOUT WHAT TYPE OF CONSUMER SHOULD BE CONSIDERED IN EVALUATING PRODUCT CLAIMS OR LABELS QUOTE I HAVE THE IMPRESSION THAT GERMAN LAWS ARE BASED ON THE PREMISE THAT BEING A CONSUMER IS A FORM OF MENTAL RETARDATION QUOTE AN E. U. OFFICIAL SAID THE FRENCH GOVERNMENT WILL ISSUE HIGH TECHNOLOGY IDENTITY CARDS TO REPLACE CITIZENS' PAPER DOCUMENTS THE PLASTIC COVERED BLUE CARDS ARE ALREADY IN USE ON A TRIAL BASIS IN A FEW REGIONS AND WILL BE PHASED IN NATIONWIDE BY THE END OF NINETEEN NINETY FIVE THEY WILL BE LINKED TO A CENTRAL COMPUTER SYSTEM IN A BID TO COMBAT FORGERIES IN NINETEEN NINETY TWO ALONE FRANCE FOUND TEN THOUSAND FAKES AMONG THE TOTAL OF THREE MILLION DOCUMENTS ISSUED BUT NO FORGERIES WERE DETECTED AMONG ABOUT FIVE HUNDRED THOUSAND TEST CARDS ISSUED SINCE NINETEEN EIGHTY EIGHT WEST OF PARIS FRANCE ALSO IS CONSIDERING REPLACING FOREIGNERS' RESIDENCE PERMITS WITH A COMPUTERIZED STAMP ATTACHED TO PASSPORTS A CHURCH OF ENGLAND BISHOP DENIED LONGSTANDING REPORTS THAT HE DIDN'T BELIEVE IN HELL THE VIRGIN BIRTH OR RESURRECTION OF CHRIST WHICH HAVE STIRRED WIDESPREAD ANGER BRITAIN SAID THE BISHOP OF DURHAM THE RIGHT REVEREND DAVID JENKINS SIXTY NINE WHO WAS THE SUBJECT OF A WALL STREET JOURNAL ARTICLE IN DECEMBER WILL RETIRE IN JULY AND BE SUCCEEDED IN THE CHURCH'S FOURTH MOST SENIOR POST BY THE BISHOP OF ROCHESTER MICHAEL TURNBULL AS THE CHURCH REPRESENTS THE STATE RELIGION THE GOVERNMENT APPOINTS SENIOR CLERGY DOCTOR JENKINS CONTENDED HIS VIEWS ON BLASPHEMY HAD BEEN TAKEN OUT OF CONTEXT AND DISTORTED GLOBAL TEMPERATURES LAST YEAR WERE HALF A DEGREE WARMER THAN THE AVERAGE FOR THE PREVIOUS FOUR DECADES BRITAIN'S METEOROLOGICAL OFFICE SAID THE AGENCY WHICH ANALYZES GOVERNMENTS' TEMPERATURE REPORTS TERMED THE RISE INSIGNIFICANT AND ATTRIBUTED IT TO USUAL CLIMATIC VARIABILITIES RATHER THAN GLOBAL WARMING A POTENTIAL CONSEQUENCE OF BURNING FOSSIL FUELS AND SENDING OTHER CHEMICALS INTO THE AIR KUWAIT RATIFIED A UNITED NATIONS CONVENTION ON COMBATING DISCRIMINATION AGAINST WOMEN BUT THE PERSIAN GULF STATE SAID IT MADE THE ENDORSEMENT WITH RESERVATIONS ABOUT PROVISIONS IN THE NINETEEN SEVENTY NINE PACT GUARANTEEING WOMEN THE RIGHT TO VOTE AND EQUAL RIGHTS IN CHILD CUSTODY DISPUTES THE CLAUSES THE EMIRATE RATIFIED STIPULATE EQUAL PAY EQUAL RIGHTS IN CHOICE OF WORK AND IN JOB PROMOTIONS PROTECTION AGAINST BIAS ON MATERNITY THE RIGHT TO CHOOSE A SPOUSE AND ENCOURAGEMENT OF MIXED EDUCATION FOREIGN INVESTMENT IN COLOMBIA'S NONOIL SECTORS LAST YEAR INCREASED TWENTY FIVE PERCENT TO FOUR HUNDRED THIRTY SIX POINT FIVE MILLION DOLLARS FROM A YEAR EARLIER U. S. COMPANIES LED THE LIST INVESTING ONE HUNDRED FIFTY THREE MILLION DOLLARS OR THIRTY FIVE PERCENT OF THE TOTAL FOLLOWED BY FIRMS FROM VENEZUELA AT SIXTY FIVE POINT EIGHT MILLION DOLLARS AND PANAMA AT FORTY NINE MILLION DOLLARS SAID INVEST IN COLOMBIA CORPORATION A JOINT PRIVATE PUBLIC ORGANIZATION THE MOST FOREIGN CAPITAL WENT TO THE CHEMICAL PLASTIC AND RUBBER SECTORS RUSSIANS' AVERAGE LIFE EXPECTANCY HAS DROPPED TO FIFTY NINE FROM SIXTY TWO YEARS FOR MEN AND TO SEVENTY THREE POINT TWO FROM SEVENTY THREE POINT EIGHT YEARS FOR WOMEN THE GOVERNMENT SAID QUANTIFYING THE TOLL ON PUBLIC HEALTH FROM POVERTY VIOLENCE DISEASE AND STRESS BY COMPARISON U. S. LONGEVITY IS SEVENTY TWO YEARS FOR MEN AND SEVENTY NINE FOR WOMEN THE RUSSIAN MEN'S LONGEVITY LOSS WAS BELIEVED TO BE THE BIGGEST FOR ANY YEAR SINCE WORLD WAR TWO AND UNPRECEDENTED AMONG DEVELOPED NATIONS THE PUBLIC HEALTH DECLINE BEGAN IN THE LATE NINETEEN EIGHTIES A MOSCOW PHYSICIAN SAID CITING VARIED REASONS INCLUDING CURRENT SOCIOECONOMIC DIFFICULTIES CAUSED BY THE FORMER SOVIET UNION'S ENVIRONMENTAL ABUSES AND RUSSIA'S AILING SWITCH TO A MARKET ECONOMY THE PRELIMINARY DATA ALSO SHOWED THAT RUSSIA'S NINETEEN NINETY THREE BIRTH RATE FELL TO NINE POINT TWO FOR EVERY ONE THOUSAND PEOPLE FROM TEN POINT SEVEN IN NINETEEN NINETY TWO BIRTHS DECLINED TO ONE POINT FOUR MILLION FROM ONE POINT SIX MILLION LEGAL ABORTIONS TOTALED THREE POINT FIVE MILLION THE DEATH RATE CLIMBED TO FOURTEEN POINT SIX FROM TWELVE POINT TWO PER ONE THOUSAND DEATHS INCREASED TO TWO POINT TWO MILLION FROM ONE POINT EIGHT MILLION THE INFANT MORTALITY RATE CONTINUING A TREND THAT BEGAN IN NINETEEN NINETY ROSE TO NINETEEN POINT THREE FROM SEVENTEEN POINT EIGHT PER ONE THOUSAND ABOUT ONE HUNDRED THOUSAND WORKERS AT THREE HUNDRED EIGHTY FOUR COMPANIES IN GERMANY'S ENGINEERING SECTOR WALKED OFF THEIR JOBS IN THE THIRD DAY OF ROLLING STRIKES BY THE METAL WORKERS UNION TO PROTEST A PROPOSED WAGE FREEZE BAMBINELLO A FIFTEENTH CENTURY ARTWORK REPUTED TO HAVE MIRACULOUS HEALING POWERS WAS STOLEN FROM A ROME CHURCH PARENTS TRADITIONALLY TAKE NEWBORN OR SICK CHILDREN TO THE STATUE DEPICTING THE INFANT JESUS ASK FOR A BLESSING AND LEAVE JEWELS WHICH ARE SOLD TO PROVIDE MONEY FOR THE POOR THE GOVERNMENT'S BAROMETER OF FUTURE ECONOMIC ACTIVITY ROSE IN DECEMBER ALONG WITH SALES OF NEW HOMES AND HELP WANTED ADS IN NEWSPAPERS GIVING FURTHER EVIDENCE THAT THE ECONOMY IS GAINING MOMENTUM THE INDEX IS DESIGNED TO FORECAST FUTURE ECONOMIC HEALTH EIGHT OF THE ELEVEN INDICATORS THAT MAKE UP THE INDEX IMPROVED THE MOST ROBUST INDICATORS WERE CONSUMER EXPECTATIONS MATERIALS PRICES AND INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS CAPITAL EQUIPMENT UNFILLED ORDERS FOR DURABLE GOODS AND THE MONEY SUPPLY WERE DOWN VERY SLIGHTLY OR UNCHANGED ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST COMPANY IN CHICAGO SAID QUOTE WE'RE IN A FULL FLEDGED CYCLICAL EXPANSION BEFORE WE HAD ONE OR MORE OF THE CYLINDERS OF THE ECONOMY NOT WORKING NOW THEY ARE ALL RUNNING SEPARATELY SALES OF NEW HOMES SHOT UP ELEVEN POINT FOUR PERCENT IN DECEMBER TO AN ANNUAL RATE OF EIGHT HUNDRED SIXTY TWO THOUSAND THE HIGHEST IN SEVEN YEARS ACCORDING TO A REPORT BY THE COMMERCE DEPARTMENT AND THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HOMES SALES FIGURES ARE VOLATILE AN INCREASE ONE MONTH IS OFTEN FOLLOWED BY A DECLINE THE NUMBERS ALSO HAVE LARGE MARGINS OF ERROR THE BIG INCREASE SURPRISED SOME ANALYSTS COMING ON THE HEELS OF A REVISED SIX POINT TWO PERCENT INCREASE IN NOVEMBER MUCH OF THE DECEMBER GROWTH WAS DUE TO A JUMP OF BETWEEN FIFTY ONE PERCENT AND SEVENTY FIVE PERCENT IN THE MIDWEST AND A MODEST INCREASE IN THE SOUTH DESPITE THE WIDE MARGINS OF ERROR IT WAS CLEAR THAT THE HOUSING MARKET EXPERIENCED STRONG GROWTH THE DECEMBER NINETEEN NINETY THREE FIGURE WAS THIRTY POINT TWO PERCENT HIGHER THAN THAT OF DECEMBER NINETEEN NINETY TWO THE NUMBER OF HOUSES FOR SALE HAS INCREASED STEADILY OVER THE PAST YEAR BUT SALES HAVE OUTPACED SUPPLY THERE WERE SIX HUNDRED SIXTY NINE THOUSAND UNITS SOLD IN NINETEEN NINETY THREE AN INCREASE OF NINE POINT SEVEN PERCENT FROM THE PREVIOUS YEAR SEPARATELY THE CONFERENCE BOARD SAID ITS INDEX OF HELP WANTED ADVERTISING ROSE TO ONE HUNDRED TEN IN DECEMBER FROM ONE HUNDRED SEVEN IN NOVEMBER AND IS NOW ABOUT SIXTEEN PERCENT HIGHER THAN A YEAR EARLIER AN INDICATION THAT BUSINESSES ARE BEGINNING TO HIRE AGAIN EMPLOYERS SEEM TO FEEL THAT SUSTAINED IMPROVEMENT IN THE GENERAL ECONOMIC ENVIRONMENT ALLOWS THEM ROOM TO HIRE NEW STAFF RATHER THAN SIMPLY TRY TO MEET INCREASED DEMAND BY SCHEDULING MORE OVERTIME HOURS SAID CONFERENCE BOARD ECONOMIST KEN GOLDSTEIN IN THE PAST THREE MONTHS HELP WANTED ADVERTISING INCREASED IN ALL REGIONS EXCEPT FOR A TWO POINT ONE PERCENT DECLINE IN THE AREA AROUND BIRMINGHAM ALABAMA AND MEMPHIS TENNESSEE SHARP GAINS WERE REPORTED IN THE WEST AND THE NORTHEAST ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A ZERO POINT SEVEN PERCENT RISE IN THE INDEX FOR DECEMBER AND A ZERO POINT FIVE PERCENT RISE FOR NOVEMBER THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS ONE POINT ONE FIVE UNCHANGED FROM ONE POINT ONE FIVE IN THE PREVIOUS MONTH THE COMPANY'S I. B. M. PERSONAL COMPUTER COMPANY UNIT NAMED MARK LOUGHRIDGE AS ASSISTANT GENERAL MANAGER FOR FINANCE AND PLANNING MR. LOUGHRIDGE FORTY YEARS OLD MOST RECENTLY SERVED AS ASSISTANT CONTROLLER FOR CORPORATE FINANCE AT I. B. M. HE SUCCEEDS EDWARD ROGERS FIFTY SIX CHIEF FINANCIAL OFFICER OF I. B. M. P. C. WHO WILL RETIRE MR. ROGERS WHO HAS SPENT THIRTY ONE YEARS AT I. B. M. AND IS CREDITED WITH HELPING MANAGE I. B. M. P. C.'S RECENT TURNAROUND SAYS HE WILL SEEK ANOTHER JOB WARNER INSURANCE SERVICES INCORPORATED SAID IT EXPECTS TO SERVICE AS MUCH AS FIFTEEN MILLION DOLLARS OF ADDITIONAL PREMIUMS THIS YEAR THE INCREASE IS DUE TO THE ADDITION OF LIBERTY MUTUAL INSURANCE COMPANY OF BOSTON TO THE GROUP OF INSURANCE COMPANIES WHOSE NEW JERSEY AUTOMOBILE ASSIGNED RISK INSURANCE OBLIGATIONS ARE HANDLED BY WARNER AS THE SERVICING CARRIER AND CLARENDON NATIONAL INSURANCE COMPANY OF NEW YORK AS THE INSURER IN NINETEEN NINETY THREE WARNER SERVICED ABOUT ONE HUNDRED FORTY MILLION DOLLARS IN TOTAL PREMIUMS A SPOKESWOMAN SAID POCO PETROLEUMS LIMITED CALGARY ALBERTA SAID IT EXPECTS TO RAISE NINETY EIGHT POINT NINE MILLION CANADIAN DOLLARS SEVENTY FOUR POINT FOUR MILLION U. S. DOLLARS AFTER COMMISSIONS ON THE SALE OF NEW SHARES TO AN UNDERWRITING SYNDICATE LED BY BURNS FRY LIMITED TORONTO THE OIL AND GAS PRODUCER SAID IT REACHED AN AGREEMENT WITH THE GROUP TO ISSUE TEN MILLION COMMON SHARES FROM THE TREASURY AT TEN CANADIAN DOLLARS AND THIRTY CENTS EACH ON A BOUGHT DEAL BASIS THE TRANSACTION WOULD RAISE THE NUMBER OF POCO SHARES OUTSTANDING TO ABOUT NINETY TWO POINT SEVEN MILLION THE COMPANY SAID IT WILL USE PROCEEDS TO FINANCE OIL AND GAS EXPLORATION AND DEVELOPMENT PROJECTS AND PROPERTY ACQUISITIONS AND INITIALLY TO REDUCE LONG TERM DEBT IT SAID IT PLANS TO FILE A PRELIMINARY PROSPECTUS TODAY AND EXPECTS THE TRANSACTION TO CLOSE FEBRUARY TWENTY SECOND ONE OF THE SEMINAL EVENTS IN THE HISTORY OF THE PERSONAL COMPUTER WAS THE INVENTION OF THE ELECTRONIC SPREADSHEET A TYPE OF SOFTWARE PROGRAM THAT PERMITS PEOPLE TO LINK NUMBERS AND FORMULAS TO EACH OTHER AND THEN ALMOST INSTANTLY CALCULATE HOW A CHANGE IN ANY ONE FIGURE AFFECTS ALL THE OTHERS IT WAS ONLY AFTER THE FIRST POPULAR SPREADSHEET PROGRAM VISICALC APPEARED ON THE OLD APPLE TWO MACHINE THAT P. C.S BEGAN TO PENETRATE BUSINESSES IN SIGNIFICANT NUMBERS AND IT WAS THE NEXT GREAT SPREADSHEET PROGRAM LOTUS DEVELOPMENT'S ONE TWO THREE THAT HELPED PROPEL THE FIRST I. B. M. PERSONAL COMPUTER TO SUCCESS IRONICALLY HOWEVER THE SPREADSHEET IS ONE OF THE LEAST UNDERSTOOD AND THEREFORE ONE OF THE MOST UNDERUTILIZED TYPES OF SOFTWARE MICROSOFT STUDIES SHOW THE VAST MAJORITY OF SPREADSHEET USERS DO LITTLE MORE THAN MAKE LISTS OF DATA AND PERFORM ONLY SIMPLE CALCULATIONS ON THOSE LISTS SUCH AS ADDING THEM UP SO IN RECENT YEARS THE TOP SPREADSHEET PUBLISHERS HAVE LAUNCHED SERIOUS EFFORTS TO MAKE THEM EASIER TO USE MICROSOFT'S EXCEL SPREADSHEET FOR WINDOWS AND ITS CHIEF RIVALS LOTUS' ONE TWO THREE FOR WINDOWS AND BORLAND INTERNATIONAL'S QUATTRO PRO FOR WINDOWS EACH HAVE ADDED SHORTCUTS AND AUTOMATION FEATURES THAT THE OTHERS HAVE QUICKLY COPIED NOW IT'S MICROSOFT'S TURN AGAIN IT HAS JUST RELEASED THE LATEST EDITION OF EXCEL VERSION FIVE POINT OH AND IT IS A MIX OF CATCH UP FEATURES DESIGNED TO MATCH INNOVATIONS FROM ITS RIVALS PLUS SOME ORIGINAL EASE OF USE IMPROVEMENTS THEY UNDOUBTEDLY WILL ADOPT SOON IN PARTICULAR THE SOFTWARE GIANT HAS TRIED TO BUILD INTO EXCEL SOME OF THE QUOTE INTELLISENSE QUOTE TECHNOLOGY INTRODUCED EARLIER THIS YEAR IN MICROSOFT WORD WHICH CAUSES THE SOFTWARE TO MAKE INTELLIGENT GUESSES ABOUT WHAT USERS WANT TO DO IN ADDITION EXCEL HAS BEEN REDESIGNED SO THAT ITS MENUS AND COMMANDS ARE ALMOST IDENTICAL TO THOSE IN WORD THE RESULT IS A VERY GOOD SPREADSHEET THAT INCHES AHEAD OF ITS RIVALS BUT IT ISN'T A DAZZLING NEW BENCHMARK IN THE FIELD MOST PEOPLE CAN'T GO WRONG BUYING EXCEL FIVE POINT OH BUT I WAS DISAPPOINTED THAT THE COMPANY DIDN'T DO EVEN MORE TO MAKE THINGS EASIER EXCEL FIVE POINT OH PLACES NOTEBOOK STYLE TABS AT THE BOTTOM OF EACH SPREADSHEET A FEATURE CREATED BY BORLAND TO BETTER IDENTIFY SPREADSHEETS AND NAVIGATE AMONG THEM FROM LOTUS ONE TWO THREE MICROSOFT HAS BORROWED IN CELL EDITING WHICH ALLOWS USERS TO ENTER AND EDIT DATA RIGHT IN ITS LOCATION ON A SPREADSHEET RATHER THAN USING A SEPARATE AREA AT THE TOP OF THE SCREEN AS HAS BEEN TRADITIONAL ANOTHER CATCH UP FEATURE IS THE PIVOT TABLE INTRODUCED IN LOTUS'S IMPROV PROGRAM WHICH PERMITS USERS TO VIEW DATA QUICKLY FROM DIFFERENT PERSPECTIVES FOR INSTANCE YOU CAN VIEW SALES BY PRODUCT LINE FOR EACH QUARTER OR BY QUARTER FOR EACH PRODUCT LINE WITH A COUPLE OF MOUSE CLICKS NEW FEATURES IN EXCEL FIVE POINT OH INCLUDE A TIP WIZARD WHICH WATCHES HOW YOU WORK AND SUGGESTS QUICKER ALTERNATIVES IT'S A POTENTIALLY GOOD TOOL THAT SUPPOSEDLY LEARNS YOUR HABITS OVER TIME AND ADJUSTS TO THEM HOWEVER WHEN YOU START USING THE PROGRAM IT TENDS TO OFFER GRATUITOUS ADVICE A LOT THERE'S ALSO A FUNCTION WIZARD THAT WALKS YOU STEP BY STEP THROUGH THE PROCESS OF ENTERING FORMULAS THAT USE FINANCIAL STATISTICAL AND OTHER FUNCTIONS IT EVEN REMEMBERS THE ONES YOU USE MOST OFTEN ANOTHER NICE ADDITION IS CALLED DRAG AND PLOT IT ALLOWS YOU TO HIGHLIGHT A RANGE OF NUMERICAL DATA THEN DRAG THOSE FIGURES ON TOP OF A CHART USING THE MOUSE WHEN YOU RELEASE THE MOUSE BUTTON EXCEL REDRAWS THE CHART TO INCLUDE THE NEW FIGURES BUT EXCEL'S DESIGNERS HAVE PLACED MOST OF THEIR EMPHASIS ON MANAGING LISTS OF DATA THE TASK MICROSOFT SAYS SPREADSHEET USERS PERFORM MOST OFTEN THERE ARE THREE NEW AUTOMATION FEATURES IN EXCEL FIVE POINT OH TO MAKE HANDLING LISTS OF DATA MUCH SIMPLER THAN IN PRIOR SPREADSHEETS FIRST IS AN AUTO FILTER THAT AUTOMATICALLY FIGURES OUT ROW AND COLUMN HEADINGS IN A DATA TABLE AND LETS YOU VIEW CATEGORIES OF INFORMATION WITH A FEW MOUSE CLICKS AN AUTOMATED SUBTOTALS FEATURE MAKES IT MUCH EASIER TO GET TOTALS ON SUBCATEGORIES OF DATA SUCH AS PAYROLL FOR SPECIFIC DEPARTMENTS AND AUTOMATED SORTING MAKES IT A BREEZE TO ARRANGE DATA IN A WIDE VARIETY OF WAYS STILL I WISH MICROSOFT HAD INCLUDED IN EXCEL MANY MORE QUOTE WIZARDS QUOTE AUTOMATED ROUTINES FOR CREATING SPECIFIC KINDS OF DOCUMENTS THESE MIGHT HAVE INCLUDED PROFIT AND LOSS STATEMENTS OR PAYROLL OR SALES REPORTS SEVERAL OTHER MICROSOFT PROGRAMS INCLUDE SUCH DOCUMENT CREATION WIZARDS BUT NOT EXCEL IN ADDITION I WONDER WHY THE COMPANY WHICH INTRODUCED THE AUTO SUM BUTTON FOR INSTANTLY TOTING UP A COLUMN OF FIGURES HASN'T FOLLOWED UP WITH ONE STEP METHODS FOR PERFORMING OTHER COMMON CALCULATIONS SUCH AS AN AUTO AVERAGE OR AUTO COUNT BUTTON MY ONLY OTHER CAUTION ABOUT EXCEL IS THAT IT IS A VERY LARGE PROGRAM IT RUNS BARELY ACCEPTABLY ON COMPUTERS WITH THE MOST COMMON MEMORY CONFIGURATION FOUR MEGABYTES BUT IF YOU USE VERY COMPLEX CALCULATIONS VERY LARGE SPREADSHEETS OR LOTS OF CHARTS THE PROGRAM BECOMES TOO SLOW FOR COMFORT ON SUCH MACHINES HEAVY DUTY USERS SHOULDN'T BUY EXCEL FIVE POINT OH UNLESS THEY HAVE AT LEAST SIX MEGABYTES OF MEMORY WHICH ADDS TO THE COST OF HARDWARE ALSO A TYPICAL INSTALLATION TAKES AROUND FIFTEEN MEGABYTES OF HARD DISK SPACE AND IF YOU INSTALL EVERY FEATURE IT CAN TOP TWENTY MEGABYTES SO YOU'LL NEED A HEFTY HARD DISK EXCEL FIVE POINT OH IS A VERY NICE SPREADSHEET BUT I THINK MICROSOFT COULD HAVE DONE BETTER INTEL CORPORATION SAID IT SETTLED SEVERAL ISSUES IN A COMPLEX AND LONG RUNNING PATENT INFRINGEMENT DISPUTE WITH CYRIX CORPORATION UNDER THE SETTLEMENT INTEL AND CYRIX OF RICHARDSON TEXAS AGREED TO DROP PATENT INFINGEMENT COUNTERCLAIMS INVOLVING A SYSTEM OF EXTERNAL MEMORY AND PAGING SOFTWARE KNOWN AS THE THREE HUNDRED THIRTY EIGHT PATENT THEY ALSO AGREED ON WHICH THIRDPARTY COMPANIES WILL BE ALLOWED TO BUILD CYRIX'S MICROPROCESSOR WHICH IS PART OF THE THREE HUNDRED THIRTY EIGHT SYSTEM THE COMPANIES SAID THEY WILL ASK THE INTERNATIONAL TRADE COMMISSION TO DROP THREE HUNDRED THIRTY EIGHT RELATED CLAIMS AGAINST A THIRD COMPANY THAT USED CYRIX CHIPS BUT INTEL SAID IT PLANS TO PROCEED ON A SEPARATE CLAIM IN THE CASE INVOLVING THE CYRIX CUSTOMER'S USE OF CHIPS MADE BY ADVANCED MICRO DEVICES INCORPORATED THE TWO COMPANIES' DISPUTE OVER THE THREE HUNDRED THIRTY EIGHT PATENT HAS BEEN IN U. S. COURT SINCE NINETEEN NINETY TWO THEY WENT TO TRIAL OVER THE PATENT LAST MONTH IN FEDERAL COURT IN SHERMAN TEXAS QUOTE THIS SETTLEMENT ENDS THE TRIAL QUOTE AN INTEL SPOKESMAN SAID BUT INTEL SAID THE SETTLEMENT STILL LEAVES SOME THREE HUNDRED THIRTY EIGHT PATENT ISSUES UNRESOLVED IT IS APPEALING A DECISION IN THE SHERMAN FEDERAL COURT LAST MONTH THAT INTEL MAY NOT COLLECT ROYALTIES FROM CYRIX CUSTOMERS WHO BOUGHT CLONES OF INTEL'S THREE EIGHTY SIX AND FOUR EIGHT SIX CHIPS MADE BY CYRIX'S PRIMARY SUBCONTRACTOR CYRIX IS ALSO SEEKING THE COURT'S PERMISSION FOR TWO OTHER THIRD PARTY FACTORIES TO BUILD CLONED CHIPS REPRESENTATIVE PHILIP SHARP A MODERATE STEWARD OF THE NATION'S ENERGY POLICY FOR NEARLY TWO DECADES WILL RETIRE FROM CONGRESS AFTER THIS YEAR THE FIFTY ONE YEAR OLD INDIANA DEMOCRAT HOLDS UNIQUE SWAY OVER ENERGY ISSUES AS BOTH CHAIRMAN OF THE ENERGY AND COMMERCE COMMITTEE'S ENERGY SUBCOMMITTEE AND THE SECOND RANKING DEMOCRAT ON THE NATURAL RESOURCES COMMITTEE AND ITS ENERGY PANEL ONCE A SHEPHERD OF PRESIDENT CARTER'S ENERGY POLICY BY NINETEEN NINETY TWO HE SPONSORED THE COMPREHENSIVE LAW ENCOURAGING OIL CONSERVATION NUCLEAR PLANT LICENSING AND ALTERNATIVE FUELS THE FORMER POLITICAL SCIENCE PROFESSOR TYPIFIED THE IDEALISTIC YOUNG OUTSIDERS WHO WON OFFICE IN NINETEEN SEVENTY FOUR IN THE LARGE WATERGATE CLASS OF DEMOCRATS THE PARTY QUICKLY MARKED REPRESENTATIVE SHARP AS A COMER BUT THE GRIND OF CONSTANT CAMPAIGNING IN A G. O. P. LEANING DISTRICT TEMPERED HIS EARLY LIBERALISM AND LOWERED HIS PUBLIC PROFILE LONG DISAPPOINTED REPUBLICANS NOW SEE GOOD ODDS TO WIN THE SEAT MR. SHARP SAID HE WASN'T LEAVING OUT OF FRUSTRATION WITH CONGRESS OR THE PUBLIC'S ANTIPATHY IN HIS HOUSE SPEECH YESTERDAY HE EXPRESSED PRIDE IN THE INSTITUTION QUOTE I'M TIRED OF CAMPAIGNING QUOTE HE TOLD REPORTERS AFTERWARD HIS TWELVE YEAR OLD SON STANDING NEARBY WOULD NO LONGER HAVE HIS NOVEMBER FOURTH BIRTHDAY MESSED UP BY ELECTIONS THE LAWMAKER ADDED ABOUT THREE DOZEN HOUSE MEMBERS HAVE ANNOUNCED OR ARE EXPECTED TO ANNOUNCE THEIR DEPARTURES NEARLY HALF OF THEM TO SEEK HIGHER OFFICE THE SENATE IS FINALLY JOINING THE DEBATE OVER THE FUTURE OF TELECOMMUNICATIONS IN THE U. S. A BIPARTISAN GROUP OF INFLUENTIAL SENATORS IS EXPECTED TO INTRODUCE LEGISLATION TODAY DESIGNED TO ENSURE ACCESS TO TELEPHONE SERVICES WHILE BREAKING DOWN BARRIERS BETWEEN CABLE TELEVISION COMPANIES AND LONG DISTANCE AND REGIONAL TELEPHONE COMPANIES THEIR PLAN HAS BEEN EAGERLY AWAITED IN THE HOUSE TWO BILLS ALREADY ARE ON THE FAST TRACK AND MANY LAWMAKERS AND INTEREST GROUPS HAVE BEEN WAITING IMPATIENTLY FOR THE SENATE TO SPRING INTO ACTION SPONSORS OF THE SENATE LEGISLATION INCLUDE COMMERCE COMMITTEE CHAIRMAN ERNEST HOLLINGS OF SOUTH CAROLINA AND COMMUNICATIONS SUBCOMMITTEE CHAIRMAN DANIEL INOUYE OF HAWAII BOTH DEMOCRATS AS WELL AS REPUBLICANS JOHN DANFORTH OF MISSOURI AND TED STEVENS OF ALASKA THEIR BILL EMPHASIZES THE GOAL OF ENSURING THAT EVERY U. S. HOUSEHOLD CAN RECEIVE TELEPHONE SERVICE ALL TELECOMMUNICATIONS CARRIERS FOR EXAMPLE WOULD BE REQUIRED TO CONTRIBUTE TO A FUND OR PROVIDE IN KIND PAYMENTS TO ENSURE THAT PHONE SERVICES REMAIN AVAILABLE TO ALL HOUSEHOLDS BEYOND THAT THE BILL WOULD ALLOW REGIONAL BELL TELEPHONE COMPANIES TO MANUFACTURE TELECOMMUNICATIONS EQUIPMENT AN ACTIVITY THAT IS OFF LIMITS FOR THE QUOTE BABY BELLS QUOTE UNDER THE NINETEEN EIGHTY TWO CONSENT DECREE THAT BROKE UP THE BELL SYSTEM THE SENATE LEGISLATION ALSO WOULD SET UP A FRAMEWORK THAT EVENTUALLY WOULD ALLOW THE SEVEN GIANT BELL COMPANIES INTO THE LONG DISTANCE BUSINESS THE OTHER ACTIVITY BANNED BY THE CONSENT DECREE THE DECISION ON THAT WOULD REST WITH THE FEDERAL COMMUNICATIONS COMMISSION WHICH WOULD BE REQUIRED TO CONSULT WITH THE ATTORNEY GENERAL BEFORE ENTERING THE LONG DISTANCE ARENA BABY BELLS WOULD HAVE TO MEET FAIRLY STRINGENT TESTS DESIGNED TO PREVENT THEM FROM USING MARKET POWER TO SQUASH COMPETITORS TO PROVIDE LONG DISTANCE SERVICE OUTSIDE OF ITS REGION A REGIONAL BELL WOULD HAVE TO SHOW THAT THERE IS NO SUBSTANTIAL POSSIBILITY IT COULD USE MARKET POWER TO HARM COMPETITION IN THE MARKET IT PLANS TO ENTER BEFORE ENTERING LONG DISTANCE SERVICE INSIDE ITS TERRITORY A BELL COMPANY WOULD HAVE TO JUMP A MUCH HIGHER HURDLE THE F. C. C. WOULD HAVE TO FIND THAT THE BELL COMPANY NOT ONLY HAS OPENED ITS OWN NETWORK TO COMPETITORS BUT ALSO ACTUALLY FACES REAL COMPETITION TO HASTEN COMPETITION IN LOCAL TELEPHONE SERVICE THE BILL WOULD REMOVE BARRIERS THAT PREVENT CABLE AND TELEPHONE COMPANIES FROM ENTERING EACH OTHER'S BUSINESSES UNLIKE A HOUSE BILL THAT WOULD REQUIRE BABY BELLS TO WAIT FIVE YEARS BEFORE FEDERAL REGULATORS CAN BEGIN REVIEWING WHETHER THEY CAN ENTER THE LONG DISTANCE MARKET THE SENATE BILL WOULDN'T IMPOSE A WAITING PERIOD THE HOUSE BILL SPONSORED BY JUDICIARY CHAIRMAN JACK BROOKS OF TEXAS AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL OF MICHIGAN WOULD LET STATE REGULATORS DECIDE WHEN A BELL COMPANY CAN PROVIDE INTRASTATE LONG DISTANCE SERVICE THE HOUSE ALSO IS CONSIDERING A BILL DESIGNED TO SPUR COMPETITION IN THE LOCAL TELEPHONE ARENA AND TO ESTABLISH A REGULATORY FRAMEWORK FOR FUTURE HIGH SPEED INTERACTIVE NETWORKS THAT CARRY VOICE DATA AND VIDEO SIGNALS THAT BILL WAS INTRODUCED BY REPRESENTATIVE EDWARD MARKEY D. MASSACHUSETTS CHAIRMAN OF THE TELECOMMUNICATIONS PANEL AND REPRESENTATIVE JACK FIELDS D. TEXAS RANKING MINORITY MEMBER HOUSE ACTION ON BOTH BILLS IS EXPECTED LATER THIS MONTH A MAJOR PROVISION OF THE SENATE BILL WOULD ENCOURAGE MEDIA DIVERSITY INCLUDING BY ALLOWING BROADCASTERS TO USE THE AIRWAVES TO OFFER DATA TRANSMISSION AND OTHER NONTRADITIONAL SERVICES AS LONG AS THEY PAY FOR USE OF THE SPECTRUM MEANWHILE LONG DISTANCE CARRIERS WARNED REPRESENTATIVE BROOKS AND OTHER LAWMAKERS THAT THE DELICATELY CRAFTED COMPROMISE WITH REPRESENTATIVE DINGELL COULD PUT MANY SMALLER LONG DISTANCE CARRIERS OUT OF BUSINESS IN AN OFTEN CONTENTIOUS HEARING BEFORE THE HOUSE JUDICIARY COMMITTEE'S ECONOMIC AND COMMERCIAL LAW PANEL THEY TOOK AIM AT THE BILL'S PROVISION ALLOWING STATE REGULATORS TO DECIDE WHETHER A BELL COMPANY CAN OFFER LONG DISTANCE SERVICE WITHIN STATE BOUNDARIES BERNARD J. EBBERS PRESIDENT OF L. D. D. S. METROMEDIA COMMUNICATIONS INCORPORATED TOLD LAWMAKERS THAT INSTEAD OF FUELING COMPETITION THE BELL COMPANIES COULD SMOTHER IT BECAUSE THE LONG DISTANCE INDUSTRY'S SMALLEST PLAYERS GENERALLY CONCENTRATE ON IN STATE SERVICE A MCKESSON CORPORATION UNIT WILL UNVEIL PLANS TODAY TO EXTEND ITS MANAGED PHARMACEUTICAL CARE SERVICES INTO THE FIELD OF HOME INFUSION THERAPY IN A VENTURE IT SAYS WILL CUT HEALTH CARE PROVIDERS COSTS FOR SUCH SERVICE BY TWENTY FIVE PERCENT STEVEN I. GERINGER PRESIDENT OF THE UNIT P. C. S. HEALTH SYSTEMS INCORPORATED SAID THAT BY MAY HE HOPES TO BRING ON LINE A NETWORK OF PHARMACIES USING COMPUTERS TO MONITOR AND MANAGE THE DRUGS INFUSED AT HOME THESE INCLUDE PAIN MEDICATIONS CHEMOTHERAPY INTRAVENOUS NUTRITION IMMUNE SYSTEM BOOSTERS AND ANTI INFECTIVE DRUGS HOME INFUSION THERAPY CONCEIVED AS A COST EFFECTIVE WAY TO ADMINISTER TREATMENT OUTSIDE THE HOSPITAL HAS RECENTLY COME UNDER FIRE FOR ALLEGED PRICE GOUGING QUOTE WE THINK WE'VE PUT TOGETHER A PROACTIVE RESPONSE TO A WELL PUBLICIZED PROBLEM IN THIS INDUSTRY QUOTE MR. GERINGER SAID IN AN INTERVIEW ADDING THAT HE EXPECTS THE BUSINESS TO BE A PROFITABLE VENTURE P. C. S. ALREADY HAS A MAJOR STAKE IN THE MANAGED PHARMACEUTICAL BUSINESS PROCESSING TWO HUNDRED MILLION PRESCRIPTION DRUG CLAIMS TOTALING SIX BILLION DOLLARS A YEAR EXTENDING SUCH MANAGED CARE SERVICES TO THE INFUSION CARE INDUSTRY WILL SAVE HEALTH CARE PLAN SPONSORS AN AVERAGE OF TWENTY FIVE PERCENT FROM CURRENT OUTLAYS MR. GERINGER ASSERTED HOME INFUSION CASE MANAGEMENT WILL ALSO ALLOW P. C. S. PHARMACISTS TO MONITOR CASES AND RECOMMEND COST EFFECTIVE ALTERNATIVES THAT CAN SAVE TENS OF THOUSANDS OF DOLLARS PER PATIENT THE COMPANY SAID IN THE YEAR ENDED MARCH THIRTY FIRST NINETEEN NINETY THREE MCKESSON EARNED ONE HUNDRED FOURTEEN POINT SEVEN MILLION DOLLARS OR TWO DOLLARS AND SIXTY NINE CENTS A SHARE ON REVENUE OF ELEVEN POINT SIX SEVEN BILLION DOLLARS TIMOTHY R. GALLAGHER FORTY SIX YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF NATIONS FINANCIAL CAPITAL CORPORATION A DIVERSIFIED FINANCIAL SERVICES COMPANY BASED IN STAMFORD CONNECTICUT HE SUCCEEDS JAMES H. OZANNE FIFTY WHO PREVIOUSLY WAS NAMED CHAIRMAN OF THE NEWLY FORMED NATIONS FINANCIAL HOLDING CORPORATION PARENT COMPANY OF NATIONS FINANCIAL CAPITAL CORPORATION AND NATIONSCREDIT THE NATIONSBANK CONSUMER FINANCE UNIT WHEN CALIFORNIA VOTERS WERE SOLD A SALES TAX INCREASE LAST YEAR THEY WERE PROMISED THE MONEY WOULD GO TO QUOTE PUBLIC SAFETY QUOTE BUT IN RIVERSIDE COUNTY NEAR LOS ANGELES FIVE PERCENT OF THE FUNDS WILL BE GOING TO MIDNIGHT BASKETBALL AND OTHER SOCIAL SERVICE PROGRAMS DESIGNED TO DIVERT YOUNGSTERS FROM TROUBLE SUPERVISORS THERE HAVE DECIDED MAYBE AFTER HOURS HOOPS DETERS CRIME BETTER THAN EXPENSIVE COPS BUT THAT WASN'T WHAT CLINT EASTWOOD TOLD THE VOTERS IN THE T. V. COMMERCIALS THAT SWUNG THE ELECTION AND MADE THE PUBLIC SECTOR'S DAY ROBERT A. PIRRAGLIA FORTY FOUR YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MEDICAL WASTE MANAGEMENT SERVICES CONCERN HE SUCCEEDS GENE FRISCO THIRTY FIVE WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR. PIRRAGLIA WAS VICE PRESIDENT CHIEF FINANCIAL OFFICER DENNIS A. MILLER FIFTY SIX WAS NAMED TO THE ADDED POST OF EXECUTIVE VICE PRESIDENT A MUCH HERALDED JOINT VENTURE BETWEEN THE POP SINGER AND COMPOSER FORMERLY CALLED PRINCE AND WARNER BROTHERS RECORDS INCORPORATED A UNIT OF TIME WARNER INCORPORATED HAS BEEN DISBANDED THE VENTURE PAISLEY PARK RECORDS WAS CREATED IN NINETEEN NINETY TWO BY WARNER BROTHERS RECORDS AND PAISLEY PARK ENTERPRISES INCORPORATED AN ENTERTAINMENT COMPANY BASED IN CHANHASSEN MINNESOTA THAT IS FULLY OWNED BY THE POP STAR ALTHOUGH WARNER BROTHERS RECORDS DECLINED TO COMMENT THOSE FAMILIAR WITH THE VENTURE SAY IT WAS DISBANDED BECAUSE OF LOSSES MO OSTIN CHAIRMAN OF WARNER BROTHERS RECORDS ISSUED A STATEMENT THAT DESCRIBED THE RELATIONSHIP SIMPLY AS QUOTE EXCITING AND CREATIVELY REWARDING QUOTE WHEN THE VENTURE WAS ANNOUNCED IN SEPTEMBER NINETEEN NINETY TWO THE POP STAR'S PUBLICITY TEAM CALLED IT THE BIGGEST SUCH CONTRACT IN RECORDING INDUSTRY HISTORY WITH VALUES RANGING FROM SIXTY MILLION DOLLARS TO ONE HUNDRED MILLION DOLLARS WARNER BROTHERS RECORDS HOWEVER NEVER CONFIRMED THE VALUE OF THE PACT AND THOSE FAMILIAR WITH THE ACCORD SUGGESTED YESTERDAY THAT SUCH FIGURES WERE HIGHLY SPECULATIVE IF THE JOINT VENTURE HAD TAKEN FLIGHT IT COULD HAVE BEEN VERY BIG BUT WARNER DIDN'T INVEST ANYTHING CLOSE TO SIXTY MILLION DOLLARS SAID ONE EXECUTIVE IT IS ESTIMATED THAT WARNER BROTHERS RECORDS MAY HAVE INVESTED TEN MILLION DOLLARS IN PAISLEY PARK RECORDS SINCE SIGNING THE VENTURE AGREEMENT ON JANUARY FIRST NINETEEN NINETY TWO AT THE TIME WARNER BROTHERS RECORDS WAS SO OPTIMISTIC THAT IT MADE THE POP STAR A VICE PRESIDENT THE PERFORMER WHO WAS BORN PRINCE ROGERS NELSON CHANGED HIS NAME LAST JUNE SEVENTH HIS BIRTHDAY TO A SYMBOL WHOSE PRONUNCIATION ISN'T CLEAR A PUBLICIST FOR THE PERFORMER SAID YESTERDAY THAT HE HASN'T GIVEN ANY EXPLANATION FOR THAT DECISION THIS ISN'T THE FIRST TIME A HEAVILY PUBLICIZED VENTURE BETWEEN AN ENTERTAINMENT COMPANY AND A MAJOR RECORDING STAR HAS PROVED DISAPPOINTING IN THE SPRING OF NINETEEN NINETY ONE SONY CORPORATION SIGNED AN AGREEMENT WITH MICHAEL JACKSON THAT CALLED FOR HIM TO PRODUCE MOVIES AND RECORDS AT THE TIME SONY SAID IT EXPECTED THE PACT TO GENERATE IN EXCESS OF ONE BILLION DOLLARS IN RETAIL SALES SEVERAL PROJECTS IN WHICH MR. JACKSON WAS EXPECTED TO PARTICIPATE NEVER MATERIALIZED HOWEVER AND THE PERFORMER'S CAREER IS UNDER A CLOUD NOW THAT HE HAS SETTLED A CIVIL SUIT AGAINST HIM FOR A SUM SAID TO BE ABOUT TWENTY MILLION DOLLARS LAST YEAR PAISLEY PARK RECORDS ISSUED NEW ALBUMS BY ERIC LEEDS MAVIS STAPLES AND GEORGE CLINTON AS WELL AS A GREATEST HITS PACKAGE FROM PRINCE ENTITLED THE HITS SLASH THE B. SIDES IT IS POSSIBLE THAT WARNER BROTHERS RECORDS MAY SIGN CONTRACTS WITH MR. LEEDS MR. CLINTON AND MS. STAPLES AT A LATER DATE BUT NOTHING HAS BEEN DECIDED YET BOB MERLIS SENIOR VICE PRESIDENT AND DIRECTOR OF MEDIA INFORMATION FOR WARNER BROTHERS RECORDS SAID THE POP STAR WILL CONTINUE TO MAKE AND PRODUCE RECORDS FOR THE COMPANY R. M. I. TITANIUM CORPORATION SAID IT FILED PRELIMINARY PROXY MATERIAL TO EFFECT A REVERSE ONE FOR TEN STOCK SPLIT THE COMPANY SAID ITS PROXY MATERIAL STATES THAT IT INTENDS TO USE A RIGHTS OFFERING TO RAISE AS MUCH AS THIRTY MILLION DOLLARS FOR THE DEVELOPMENT OF NEW MARKETS FOR ITS PRODUCTS R. M. I. MANUFACTURES TITANIUM MILL PRODUCTS HOT FORMED AND SUPERPLASTICALLY FORMED PARTS AND TITANIUM POWDER STANDARD AND POOR'S CORPORATION RAISED ITS RATINGS ON BALLY MANUFACTURING CORPORATION'S ONE POINT TWO BILLION DOLLARS IN DEBT CITING THE GAMBLING AND HEALTH CLUB CONCERN'S LOWER NEAR TERM OBLIGATIONS BETTER LIQUIDITY AND STRONG CASINO RESULTS THE RATING CONCERN SAID THAT WHILE BALLY'S CONSOLIDATED DEBT LEVERAGE REMAINS HIGH COMPLETION OF A NUMBER OF CORPORATE REFINANCINGS QUOTE HAS RESULTED IN MINIMAL DEBT MATURITIES OVER THE NEXT FEW YEARS QUOTE THE REFINANCINGS COUPLED WITH DEBT ISSUED LAST YEAR BY THE CHICAGO BASED COMPANY'S BALLY'S CASINO HOLDING UNIT HAVE SUBSTANTIALLY IMPROVED THE PARENT'S LIQUIDITY AND REDUCED EARLIER CONCERNS ABOUT ITS ABILITY TO MEET SINKING FUND REQUIREMENTS ON CERTAIN DEBT ISSUES THE RATING CONCERN SAID S. AND P. SAID BALLY'S GAMBLING OPERATIONS HAVE PERFORMED QUITE WELL BUT THAT OPERATIONS AT BALLY'S HEALTH AND TENNIS UNIT CONTINUE TO SUFFER FROM A HEAVY DEBT BURDEN AND HIGH OPERATING LEASES BALLY MANUFACTURING'S SUBORDINATED DEBT WAS RAISED TO SINGLE B. PLUS FROM SINGLE B. AS WERE SENIOR SUBORDINATED NOTES ISSUED BY BALLY'S HEALTH AND TENNIS AND SENIOR DISCOUNT NOTES ISSUED BY BALLY'S CASINO HOLDINGS S. AND P. ALSO RAISED ITS RATING ON FIRST MORTGAGE NOTES ISSUED BY BALLY PARK PLACE FUNDING INCORPORATED TO DOUBLE B. FROM DOUBLE B. MINUS THE FIRST GENERATION OF PERSONAL COMMUNICATORS IS DEAD IN THE WATER LONG LIVE THE SECOND GENERATION LESS THAN A YEAR AFTER THEIR INTRODUCTION THE FIRST HAND HELD DATA COMMUNICATORS SOMETIMES CALLED PERSONAL DIGITAL ASSISTANTS HAVE BEEN JUDGED BY THE MARKET AND FOUND WANTING APPLE COMPUTER COMPANY'S NEWTON MESSAGEPAD STARTED OUT WITH A BANG LAST AUGUST SELLING FIFTY THOUSAND UNITS IN THE FIRST MONTH BUT ITS SALES CURVE IS NOW GOING THE WRONG WAY HAVING DROPPED TO AN AVERAGE OF SEVEN THOUSAND FIVE HUNDRED UNITS OVER THE FOLLOWING FOUR MONTHS AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S EO DEVICE IS A MARKETING DISASTER SELLING A LITTLE MORE THAN ONE THOUSAND UNITS A MONTH SINCE LAST MARCH ACCORDING TO ESTIMATES ANOTHER MODEL THE ZOOMER MADE BY CASIO AND SOLD BY TANDY CORPORATION HAS HARDLY MADE A DENT IN THE MARKET QUOTE THE P. D. A. MARKET DOESN'T LOOK REAL ROSY FOR NINETEEN NINETY FOUR QUOTE SAYS WILLIAM LEMPESIS A MARKET ANALYST IN PLEASANTON CALIFORNIA WHO LAST MONTH CUT HIS FORECAST FOR THE YEAR TO UNIT SALES OF ONE HUNDRED THIRTY THOUSAND TO ONE HUNDRED FORTY THOUSAND FROM A PREVIOUS ESTIMATE OF THREE HUNDRED FORTY THOUSAND PERSONAL COMMUNICATORS ARE INTENDED TO BE HANDY LITTLE GADGETS THAT STORE AND LINK A USER'S PERSONAL INFORMATION SUCH AS ADDRESSES PHONE NUMBERS AND TO DO LISTS AND SEND AND RECEIVE TEXT MESSAGES VIA PAGERS WIRELESS NETWORKS AND TELEPHONE LINES BUT TECHNOLOGISTS AND MARKETERS ALIKE SAY THE PIONEERING COMPANIES DELIVERED TECHNICALLY FLAWED OVERPRICED DEVICES THAT DIDN'T DO ANYTHING PARTICULARLY COMPELLING SUCH AS COMMUNICATE WIRELESSLY I'VE HEARD PEOPLE SAY THAT EASE OF USE IS ONE OF THE KEY BARRIERS BUT I THINK THAT'S COMPLETELY WRONG SAYS NATHAN MYHRVOLD SENIOR VICE PRESIDENT OF ADVANCED TECHNOLOGY AT MICROSOFT CORPORATION THE PROBLEM IS THEY DON'T DO ANYTHING USEFUL BOTH APPLE AND A. T. AND T. MADE CRITICAL MARKETING AND TECHNICAL ERRORS JOHN SCULLEY APPLE'S FORMER CHAIRMAN CREATED INFLATED EXPECTATIONS FOR THE NEWTON BY HYPING IT FOR A FULL YEAR BEFORE ITS INTRODUCTION SAYING IT IS THE MOST IMPORTANT THING APPLE HAS EVER DONE AND WOULD BE INSTRUMENTAL IN CREATING A THREE POINT FIVE TRILLION DOLLAR DIGITAL INFORMATION INDUSTRY OTHER PERSONAL COMMUNICATOR MAKERS ASSERT HIS TACTICS CREATED A SEVERE BACKLASH WHEN THE VERY LIMITED NEWTON WAS FINALLY SHIPPED EO'S MAKERS MISJUDGED THEIR MARKETPLACE INCORRECTLY ASSUMING USERS WOULD WANT TO USE A STYLUS TO ENTER LARGE AMOUNTS OF DATA IN THEIR DEVICES MOREOVER BOTH THE NEWTON AND EO RELY ON ERROR PRONE HANDWRITING RECOGNITION SOFTWARE AND EASY COMMUNICATIONS CAPABILITY SEEMS TO BE AN AFTERTHOUGHT FOR INSTANCE NEITHER HAS AN INTERNAL MODEM FOR SPEEDY WIRELESS DATA COMMUNICATIONS THE EO INCLUDES A CELLULAR PHONE BUT COSTS A HEFTY TWO THOUSAND FIVE HUNDRED DOLLARS THE NEWTON STARTS OUT AT SEVEN HUNDRED DOLLARS BUT NEEDS A MODEM PAGER AND CONNECTIVITY KIT TO COMMUNICATE AT ALL TOTAL COST ABOUT ONE THOUSAND THREE HUNDRED DOLLARS STILL THE HISTORY OF TECHNOLOGY STRONGLY INDICATES THAT THERE'S NOTHING REMARKABLE OR PARTICULARLY OMINOUS ABOUT THE PERSONAL COMMUNICATOR'S PROBLEMS OR SLOW START APPLE'S MACINTOSH FOR EXAMPLE LANGUISHED FOR TWO GENERATIONS BECAUSE IT WAS TOO EXPENSIVE TOO LIMITED AND DIDN'T HAVE ANY JAZZY SOFTWARE TO RUN MOTOROLA INCORPORATED SONY CORPORATION AND COMPAQ COMPUTER CORPORATION ARE ALREADY WORKING ON MORE ADVANCED PERSONAL COMMUNICATORS AND APPLE AND A. T. AND T. ARE GOING TO COME OUT WITH IMPROVED SECOND GENERATION MODELS LATER THIS YEAR IT WILL TAKE TWO OR THREE ITERATIONS BEFORE THESE THINGS ARE ANY GOOD SAYS KIMBALL BROWN THE CHIEF ANALYST FOR MOBILE COMPUTING FOR DATAQUEST A RESEARCH FIRM ADDS ANDREW SEYBOLD PUBLISHER OF A MOBILE COMPUTING NEWSLETTER THE GRANDSON OF NEWTON WILL BE A GREAT PRODUCT A SURVEY BY A RESEARCH FIRM LINK RESOURCES OF NEW YORK INDICATES STRONG INTEREST BY CONSUMERS IN A PRODUCT THAT WOULD MANIPULATE THEIR PERSONAL DATA PROVIDE BOTH VOICE AND WIRELESS DATA COMMUNICATIONS AND CONNECT THEM TO THEIR DESKTOP COMPUTERS BUT LINK ALSO FOUND THAT BUSINESS PEOPLE WILL BE THE INITIAL USERS OF WIRELESS DEVICES AND THAT A CONSUMER MARKET WON'T BEGIN TO DEVELOP UNTIL NEXT YEAR AT THE EARLIEST WHILE ALL PERSONAL COMMUNICATORS WILL FACE EXTERNAL OBSTACLES SUCH AS AN INITIAL LACK OF ATTRACTIVE SOFTWARE APPLICATIONS AND INEXPENSIVE WIRELESS NETWORKS MOTOROLA AND SONY ARE GOING TO SOME PAINS TO AVOID THE MISTAKES MADE BY APPLE AND A. T. AND T. MOTOROLA FOR EXAMPLE IS CREATING A DEVICE THAT'S A LITTLE THINNER AND LIGHTER THAN THE NEWTON AND WILL HAVE BOTH A TELEPHONE LINE MODEM AND A WIRELESS MODEM BUILT IN BOTH MOTOROLA AND SONY WILL OFFER A NEW OPERATING SYSTEM CALLED MAGIC CAP THAT THEY ASSERT WILL PROVIDE THE ADDED VALUE AND USEFULNESS MISSING IN FIRST GENERATION P. D. A.S MAGIC CAP DEVELOPED BY GENERAL MAGIC INCORPORATED A SOFTWARE CONSORTIUM BASED IN MOUNTAIN VIEW CALIFORNIA HAS THE LOOK AND FEEL OF AN INTRIGUING VIDEO GAME BUT IT ALLOWS USERS TO SEND MESSAGES WITH THE TAP OF A STYLUS OR FINGER AND IT FACILITATES THE USE OF ELECTRONIC AGENTS THAT CAN BE SENT OUT ON SPECIAL NETWORKS TO PERFORM SUCH TASKS AS FINDING AND FILTERING INFORMATION A. T. AND T. PLANS TO INTRODUCE A NATIONWIDE AGENT BASED NETWORK CALLED PERSONALINK THIS SUMMER BY WHICH TIME MOTOROLA AND SONY PLAN TO HAVE THEIR DEVICES ON STORE SHELVES QUOTE WE HOPE THIS IS A REAL BUSINESS IN NINETEEN NINETY FIVE QUOTE SAYS ROBERT GROWNEY THE HEAD OF MOTOROLA'S WIRELESS DATA GROUP IT WON'T REALLY START IN NINETEEN NINETY FOUR MODELS FROM MOTOROLA AND SONY ARE EXPECTED TO COST ABOUT ONE THOUSAND DOLLARS EACH OR SLIGHTLY MORE DEPENDING ON THE NUMBER OF FEATURES APPLE AND A. T. AND T. CAN HARDLY BE COUNTED OUT AT THIS STAGE BOTH ARE PARTNERS IN GENERAL MAGIC AND PLAN TO USE THE AGENT BASED TECHNOLOGY THEMSELVES A. T. AND T. HAS GONE BACK TO THE DRAWING BOARD WITH THE EO PLANNING TO SHRINK IT TO A CELLULAR PHONE WITH BUILT IN SOFTWARE FOR STORING FILES AND MESSAGES BELLSOUTH CORPORATION IS ABOUT TO SHIP A SIMILAR KIND OF PERSONAL COMMUNICATOR DESIGNED BY I. B. M. CALLED THE SIMON MOTOROLA AND JAPAN'S SHARP AND MATSUSHITA ELECTRIC INDUSTRIAL COMPANY HAVE ALL LICENSED NEWTON'S OPERATING SYSTEM AND INTEND TO SUPPORT THE TECHNOLOGY MOTOROLA'S MR. GROWNEY SAYS RIDICULE OF THE NEWTON'S HANDWRITING RECOGNITION SOFTWARE HAS BEEN ALMOST VICIOUS AND HE BELIEVES IT CAN BE PERFECTED IN LATER MODELS ALTHOUGH MANY TECHNOLOGISTS ARE DUBIOUS APPLE ITSELF IS DEVELOPING APPLICATIONS IN SOME CASES WITH OTHER COMPANIES THAT WILL DE EMPHASIZE OR ELIMINATE THE NEED FOR HANDWRITING RECOGNITION OR OFFER ALTERNATIVE INPUT OPTIONS SUCH AS AUTOMATIC DATA TRANSFER FROM DESKTOPS IT WILL OFFER LATER THIS YEAR A NEW MODEL WITH A LARGER SCREEN TO WHICH A KEYBOARD CAN BE ATTACHED AND IT DOESN'T RULE OUT A KEYBOARD ATTACHMENT FOR THE NEXT GENERATION OF THE CURRENT MODEL GASTON BASTIAENS GENERAL MANAGER OF APPLE'S PERSONAL INTERACTIVE ELECTRONICS DIVISON SAYS THE NEWTON HAS BEEN THE VICTIM OF INFLATED SALES PROJECTIONS BY OUTSIDE ANALYSTS AS WELL AS APPLE'S OWN PRE INTRODUCTION HYPE OF THE PRODUCT NEWTON SALES HAVE EXCEEDED MY WILDEST EXPECTATIONS HE SAYS TAKE THE HISTORY OF ANY NEW PRODUCT OR PLATFORM YOU'VE NEVER SEEN A PRODUCT TAKE OFF SO FAST NEWTON'S FIVE MONTH SALES ALTHOUGH DOWN SHARPLY FROM THE INITIAL LAUNCH PERIOD ARE STILL CLOSE TO THE TOTAL SALES OF C. D. PLAYERS IN THEIR FIRST TWO YEARS ON THE MARKET ACCORDING TO SONY IRA BRODSKY A WIRELESS EXPERT WHO HEADS DATACOMM RESEARCH COMPANY WILMETTE ILLINOIS SAYS APPLE SHOULDN'T BE FAULTED FOR NOT GETTING IT RIGHT THE FIRST TIME QUOTE COMPANIES NOW HAVE TO FOLLOW THE PRODUCT DEVELOPMENT MODEL MORE FAMILIAR IN CONSUMER ELECTRONICS QUOTE HE SAYS PUT A PRODUCT OUT EVERY SIX MONTHS AND DO YOUR RESEARCH IN THE MARKETPLACE BY SEEING HOW PEOPLE RESPOND TO IT HE ADDS IT WOULD BE A TERRIBLE MISTAKE FOR SOME OF THESE COMPANIES TO CONCLUDE THIS MARKET ISN'T TO BE ANDY HERTZFELD GENERAL MAGIC'S SOFTWARE CHIEF AGREES AT THIS POINT WE'RE ALL PUTTING STAKES IN THE GROUND AS MUCH AS MAKING REAL PRODUCTS THIS IS A TEN TO FIFTEEN YEAR ADVENTURE DON CLARK CONTRIBUTED TO THIS ARTICLE THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FORT HOWARD CORPORATION SEVEN HUNDRED FIFTY MILLION DOLLARS TWO PART ISSUE OF NOTES PRICED IN TWO PARTS THROUGH LEAD MANAGER MORGAN STANLEY AND COMPANY THE FIRST TRANCHE ONE HUNDRED MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIRST TWO THOUSAND TWO WAS PRICED AT PAR TO YIELD EIGHT POINT TWO FIVE PERCENT THE NONCALLABLE ISSUE IS RATED SINGLE B. ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLEB PLUS BY STANDARD AND POOR'S CORPORATION THE SECOND TRANCHE SIX HUNDRED FIFTY MILLION DOLLARS OF SENIOR SUBORDINATED NOTES DUE FEBRUARY FIRST TWO THOUSAND SIX WAS PRICED AT PAR TO YIELD NINE PERCENT THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLE B. TWO BY MOODY'S AND SINGLE B. BY S. AND P. REPAP WISCONSIN INCORPORATED FOUR HUNDRED MILLION DOLLARS TWO PART ISSUE OF NOTES PRICED THROUGH LEAD MANAGER C. S. FIRST BOSTON INCORPORATED ACCORDING TO M. C. M. CORPORATEWATCH THE FIRST TRANCHE TWO HUNDRED FIFTY MILLION DOLLARS OF FIRST PRIORITY SENIOR SECURED NOTES DUE FEBRUARY FIRST TWO THOUSAND TWO WAS PRICED AT PAR TO YIELD NINE POINT TWO FIVE PERCENT THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLE B. ONE BY MOODY'S AND SINGLE B. PLUS BY S. AND P. THE SECOND TRANCHE ONE HUNDRED FIFTY MILLION DOLLARS OF SECOND PRIORITY SENIOR SECURED NOTES DUE MAY FIRST TWO THOUSAND SIX WAS PRICED AT PAR TO YIELD NINE POINT EIGHT SEVEN FIVE PERCENT THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLE B. THREE BY MOODY'S AND SINGLE B. BY S. AND P. BOTH ISSUES HAVE A THREE YEAR INITIAL PUBLIC OFFERING CALL OPTION FOR UP TO THIRTY FIVE PERCENT OF THE COMPANY'S EQUITY REPAP WISCONSIN IS A UNIT OF REPAP ENTERPRISES INCORPORATED U. S. A. MOBILE COMMUNICATIONS INCORPORATED ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIRST TWO THOUSAND FOUR PRICED AT PAR TO YIELD NINE POINT FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLE B. THREE BY MOODY'S AND TRIPLE C. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY NOMURA SECURITIES INTERNATIONAL INCORPORATED U. S. A. MOBILE IS A UNIT OF U. S. A. MOBILE COMMUNICATIONS HOLDINGS INCORPORATED EMPRESAS LA MODERNA S. A. INITIAL OFFERING OF FIVE POINT THREE MILLION AMERICAN DEPOSITARY SHARES PRICED AT THIRTY TWO DOLLARS AND FIFTY THREE CENTS APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY AND COMPANY EACH DEPOSITARY SHARE REPRESENTS FOUR CLASS ONE SERIES A COMMON SHARES EQUITY MARKETING INCORPORATED INITIAL PUBLIC OFFERING OF ONE POINT EIGHT MILLION COMMON SHARES PRICED AT SIX DOLLARS APIECE THROUGH LEAD UNDERWRITER JOSEPHTHAL LYON AND ROSS INCORPORATED U. S. A. MOBILE COMMUNICATIONS HOLDINGS INCORPORATED INITIAL OFFERING OF FIVE POINT FIVE MILLION COMMON SHARES PRICED AT TEN DOLLARS APIECE THROUGH UNDERWRITERS LED BY NOMURA SECURITIES INTERNATIONAL INCORPORATED AND BRENNER SECURITIES WALDEN RESIDENTIAL PROPERTIES INCORPORATED INITIAL OFFERING OF SIX POINT EIGHT MILLION COMMON SHARES PRICED AT NINETEEN DOLLARS AND TWENTY FIVE CENTS APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION THREE HUNDRED MILLION DOLLAR REVENUE BONDS APPARENTLY WON BY A GOLDMAN SACHS AND COMPANY GROUP WITH A BID SETTING THE TRUE INTEREST COST AT FOUR POINT EIGHT THREE ONE THREE PERCENT YIELDS RANGE FROM TWO POINT SEVEN PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT ONE FIVE PERCENT IN TWO THOUSAND THIRTEEN THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION AND CARRY TRIPLE A RATINGS FROM BOTH MOODY'S AND S. AND P. SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY TWO HUNDRED TWENTY SEVEN MILLION DOLLAR REFUNDING REVENUE BONDS PRICED BY A C. S. FIRST BOSTON INCORPORATED GROUP YIELDS RANGE FROM FOUR POINT SEVEN FIVE PERCENT IN TWO THOUSAND SIX TO FIVE POINT THREE PERCENT IN TWO THOUSAND TWENTY THE BONDS ARE INSURED BY AMBAC INDEMNITY CORPORATION AND CARRY TRIPLE A RATINGS FROM BOTH MOODY'S AND S. AND P. FEDERAL HOME LOAN MORTGAGE CORPORATION SIX HUNDRED FORTY SIX POINT SEVEN MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS AND COMPANY THE OFFERING SERIES ONE THOUSAND SIX HUNDRED NINETY THREE IS BACKED BY THE AGENCY'S FIFTEEN YEAR SIX PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SIX POINT SIX TWO FIVE PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF ONE HUNDRED SEVENTY SEVEN MONTHS FEDERAL HOME LOAN MORTGAGE CORPORATION FIVE HUNDRED ONE MILLION DOLLARS OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION THE OFFERING SERIES ONE THOUSAND SIX HUNDRED NINETY FOUR IS BACKED BY THE AGENCY'S THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT OH FIVE PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY NINE MONTHS FEDERAL HOME LOAN MORTGAGE CORPORATION NINETY SEVEN POINT THREE MILLION DOLLARS OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY AND COMPANY THE OFFERING SERIES TWO HUNDRED SEVEN IS BACKED BY THE AGENCY'S FIFTEEN YEAR EIGHT POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF NINE POINT FOUR SEVEN PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF EIGHTY EIGHT MONTHS FEDERAL HOME LOAN MORTGAGE CORPORATION SIXTY SIX MILLION DOLLAR OFFER OF INTEREST ONLY STRIPPED MORTGAGE BACKED SECURITIES IO STRIP G. S. OH OH FIVE IS BACKED BY THE AGENCY'S STRIPPED THIRTY YEAR GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES COMPANIA ESPANOLA DE PETROLEOS S. A. SPAIN FIFTEEN BILLION SPANISH PESETAS OF SEVEN POINT NINE PERCENT MATADOR BONDS DUE DECEMBER TWENTY EIGHTH TWO THOUSAND AT ISSUE PRICE PAR VIA BANCO CENTRA HISPANO AMERICA S. A. FEES UNDISCLOSED CREDIT LOCAL DE FRANCE FRENCH AGENCY THREE HUNDRED MILLION E. C. U.S OF FIVE POINT TWO FIVE PERCENT EUROBONDS DUE DECEMBER TWENTY NINTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED ONE POINT ONE SEVEN FIVE VIA LEHMAN BROTHERS INTERNATIONAL LIMITED AND SWISS BANK CORPORATION REOFFERED AT NINETY NINE POINT FIVE FIVE TO YIELD FIVE POINT THREE FIVE PERCENT FEES ONE POINT EIGHT SEVEN FIVE GENERAL ELECTRIC CAPITAL CORPORATION U. S. PARENT TWO HUNDRED FIFTY MILLION DOLLARS OF FOUR POINT TWO FIVE PERCENT EUROBONDS DUE MARCH FOURTH NINETEEN NINETY SIX AT ISSUE PRICE ONE HUNDRED POINT NINE NINE VIA C. S. FIRST BOSTON INCORPORATED REOFFERED AT NINETY NINE POINT NINE NINE TO YIELD FOUR POINT TWO SIX PERCENT A MARGIN OF TWO BASIS POINTS OVER COMPARABLE U. S. TREASURY FEES ONE POINT ONE TWO FIVE JCR PHARMACEUTICALS COMPANY JAPAN FIFTY MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE ZERO POINT SIX TWO FIVE PERCENT NOTES DUE MARCH THIRTY FIRST NINETEEN NINETY EIGHT AT PAR VIA KANKAKU SUISSE S. A. NOTES CONVERTIBLE FROM MARCH TENTH TO MARCH EIGHTEENTH NINETEEN NINETY EIGHT AT EXPECTED TWO POINT FIVE PERCENT PREMIUM OVER CLOSING SHARE PRICE MONDAY WHEN TERMS ARE TO BE FIXED FEES ONE POINT SIX TWO FIVE PEABODY DONATION FUND UNITED KINGDOM FIFTY MILLION OF TEN POINT TWO FIVE PERCENT DEBENTURE STOCK DUE FEBRUARY TWENTY SECOND TWO THOUSAND EIGHTEEN AT ISSUE PRICE ONE HUNDRED TWENTY ONE POINT SEVEN TWO THREE VIA NATWEST CAPITAL MARKETS STOCK YIELDS EIGHT POINT ONE EIGHT FIVE PERCENT A MARGIN OF ONE HUNDRED SIXTY FIVE BASIS POINTS OVER EIGHT POINT SEVEN FIVE PERCENT U. K. GILT OF TWO THOUSAND SEVENTEEN STOCK TO TRADE INTERCHANGEABLY WITH FIFTY MILLION OF IDENTICAL STOCK OUTSTANDING FEES UNDISCLOSED PAYABLE SEMIANNUALLY PEOPLE'S REPUBLIC OF CHINA SOVEREIGN ONE BILLION DOLLARS OF SIX POINT FIVE PERCENT GLOBAL BONDS DUE FEBRUARY SEVENTEENTH TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE NINETY NINE POINT FOUR OH SIX VIA MERRILL LYNCH AND COMPANY BONDS YIELD SIX POINT FIVE EIGHT TWO PERCENT A MARGIN OF EIGHTY FIVE BASIS POINTS OVER COMPARABLE U. S. TREASURY FEES ZERO POINT THREE SEVEN FIVE PAYABLE SEMIANNUALLY ROYAL BANK OF SCOTLAND P. L. C. U. K. FIVE HUNDRED MILLION OF SIX POINT SIX TWO FIVE PERCENT EUROBONDS DUE MARCH SECOND TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT FIVE EIGHT FIVE VIA U. B. S. LIMITED S. G. WARBURG SECURITIES LIMITED AND ROYAL BANK OF SCOTLAND REOFFERED AT NINETY EIGHT POINT NINE THREE FIVE TO YIELD SIX POINT SEVEN SEVEN PERCENT A MARGIN OF FORTY BASIS POINTS OVER COMPARABLE U. K. GILT FEES TWO TRIBUNE COMPANY'S FOURTH QUARTER EARNINGS CLIMBED THIRTY EIGHT PERCENT ON STRENGTHENED RESULTS AT ITS BROADCAST AND NEWSPAPER OPERATIONS LOWER INTEREST OUTLAYS AND REDUCED EXPOSURE TO THE CONTINUING WEAKNESS OF ITS NEWS PRINT SUBSIDIARY THE BIG MEDIA CONCERN REPORTED NET INCOME OF FIFTY EIGHT POINT ONE MILLION DOLLARS OR EIGHTY CENTS A SHARE UP FROM THE YEAR AGO PERIOD'S FORTY TWO MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE REVENUE FELL SIX POINT NINE PERCENT TO FIVE HUNDRED THIRTEEN POINT NINE MILLION DOLLARS FROM FIVE HUNDRED FIFTY TWO POINT ONE MILLION DOLLARS A YEAR AGO THE REVENUE DOWNTURN REFLECTS THE COMPANY'S NINETEEN NINETY THREE OFFERING OF A FIFTY ONE PERCENT VOTING STAKE IN ITS CANADA BASED NEWS PRINT UNIT NOW KNOWN AS QUNO CORPORATION QUNO'S RESULTS ARE REPORTED UNDER THE EQUITY METHOD OF ACCOUNTING TRIBUNE'S NEWSPAPER OPERATIONS WHICH INCLUDE THE CHICAGO TRIBUNE AND FIVE OTHER DAILIES SHOWED A FOURTEEN PERCENT OPERATING PROFIT INCREASE EXCLUSIVE OF A CHARGE IN THE YEAR AGO PERIOD TO COVER SHUTDOWN OF A NORTHERN CALIFORNIA DAILY NEWSPAPER AD REVENUE GREW SEVEN PERCENT HELPED BY A SOLID TWELVE PERCENT INCREASE FROM CLASSIFIED ADS THE YEAR AGO CHARGE TO CLOSE THE PALO ALTO CALIFORNIA PENINSULA TIMES TRIBUNE TRIMMED TWELVE CENTS A SHARE FROM EARNINGS BUT WAS OFFSET BY A TWELVE CENT GAIN THAT TRIBUNE COMPANY WHICH OWNS THE CHICAGO CUBS BASEBALL TEAM REAPED FROM ITS SHARE OF MAJOR LEAGUE BASEBALL EXPANSION FUNDS TRIBUNE'S BROADCASTING AND ENTERTAINMENT GROUP WHICH BESIDES THE CUBS TEAM INCLUDES SEVEN TELEVISION STATIONS SIX RADIO STATIONS AND A SYNDICATED PROGRAMMING BUSINESS SAW OPERATING PROFIT EXCLUDING THE BASEBALL EXPANSION FEES RISE FORTY ONE PERCENT ON HIGHER REVENUES AT ITS T. V. AND RADIO OPERATIONS TRIBUNE'S PORTION OF QUNO'S FOURTH QUARTER LOSS CUT ELEVEN CENTS A SHARE FROM THE LATEST RESULTS IN THE YEAR AGO PERIOD WHEN TRIBUNE WAS THE UNIT'S SOLE OWNER QUNO'S LOSS REDUCED NET BY THIRTEEN CENTS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TRIBUNE SHARES ROSE ONE POINT THREE SEVEN FIVE DOLLARS TO SIXTY POINT THREE SEVEN FIVE DOLLARS A SHARE THE CHICAGO MERCANTILE EXCHANGE IN AN APPARENT EFFORT TO AVERT A NASTY STOCK MARKET SELL OFF IF INTEREST RATES BEGIN TO RISE SHARPLY IS MAKING IT MORE EXPENSIVE TO SPECULATE IN STOCK INDEX FUTURES THE CHICAGO MERC SAID IT WILL RAISE THE INITIAL AMOUNT OF MONEY SPECULATORS MUST PUT UP TO BUY OR SELL A FUTURES CONTRACT BASED ON THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX EFFECTIVE MONDAY AFTER THE CLOSE OF TRADING THE TWENTY FIVE PERCENT RISE WILL REQUIRE SPECULATORS PUT UP ELEVEN THOUSAND TWO HUNDRED FIFTY DOLLARS OR FOUR POINT SIX PERCENT OF THE CONTRACT VALUE FROM NINE THOUSAND DOLLARS SO CALLED MAINTENANCE MARGIN OR THE AMOUNT OF MONEY NEEDED TO KEEP A POSITION OPEN WILL INCREASE TO TEN THOUSAND DOLLARS FROM EIGHT THOUSAND DOLLARS FOR SPECULATORS IT IS THE FIRST TIME SINCE JANUARY NINETEEN NINETY ONE THAT THE CHICAGO MERC HAS RAISED THE INITIAL MARGIN REQUIREMENTS ON THE S. AND P. FUTURES CONTRACT THE MOVE APPLIES TO INVESTORS WHO AREN'T MEMBERS OF THE CHICAGO MERC THE ACTION APPARENTLY FOLLOWS PRESSURE FROM FEDERAL RESERVE AND COMMODITY FUTURES TRADING COMMISSION OFFICIALS A FED SPOKESMAN SAID THE CENTRAL BANK HAD NO TALKS WITH THE EXCHANGE BUT A C. F. T. C. SPOKESMAN CONFIRMED THAT THE AGENCY DISCUSSED THE MATTER WITH THE CHICAGO MERC WILLIAM BRODSKY PRESIDENT OF THE CHICAGO MERC SAID THE EXCHANGE DECIDED IT WAS QUOTE PRUDENT QUOTE TO RAISE INITIAL MARGIN REQUIREMENTS QUOTE AFTER CONSULTATION WITH PEOPLE IN WASHINGTON THE TRUTH IS THAT THE STOCK MARKET IS UP FOUR HUNDRED POINTS IN FOUR MONTHS A VERY SIGNIFICANT ONE WAY MOVE MR. BRODSKY SAID OBVIOUSLY WE ARE NOT UNAWARE THAT THERE MAY BE AN UPTICK IN INTEREST RATES AND IT MAY HAVE AN IMPACT ON THE MARKET BUT IT IS ONE OF MANY THINGS WE CONSIDER UNDER THE C. F. T. C. REAUTHORIZATION BILL THAT WAS PASSED IN NINETEEN NINETY TWO THE FEDERAL RESERVE HAS OVERSIGHT AUTHORITY OVER MARGIN REQUIREMENTS ON STOCK INDEX FUTURES WHICH IT HAS DELEGATED TO THE C. F. T. C. SOME ECONOMISTS SUGGESTED THE CHICAGO MERC MAY BE ACTING BECAUSE IT IS CONCERNED ABOUT A BRUTAL SELL OFF IN STOCKS IF THE FED RAISES INTEREST RATES ON MONDAY A DAY BEFORE THE CHICAGO MERC'S MOVE FED CHAIRMAN ALAN GREENSPAN WARNED THE JOINT ECONOMIC COMMITTEE OF CONGRESS THAT THE FED WOULD BOOST SHORT TERM INTEREST RATES AT SOME POINT BUT REFUSED TO SPECULATE ABOUT WHEN IT MIGHT DO SO OR HOW HIGH RATES MIGHT RISE THE CHICAGO MERC IS IN EFFECT SAYING THAT THEY THINK THE ODDS OF FED TIGHTENING HAVE INCREASED SAID EDWARD YARDENI CHIEF ECONOMIST AT C. J. LAWRENCE QUOTE THE CHICAGO MERC DID THE PRUDENT THING THEY WANT TO MAKE SURE THAT PEOPLE WHO ARE BETTING ON THE STOCK MARKET ARE WELL CAPITALIZED QUOTE HE SAID MR. YARDENI ADDED THAT IF THE FED DID INDEED WEIGH UPON THE EXCHANGE TO RAISE ITS MARGIN REQUIREMENTS ONE COULD ASSUME THAT THE FED IS GEARING UP TO TIGHTEN MONETARY POLICY AND THEY DON'T WANT TO CREATE A DESTABILIZING SELL OFF IN THE MARKET INITIAL MARGIN REQUIREMENTS ON STOCK INDEX FUTURES HAVE VARIED SIGNIFICANTLY DURING THE PAST DECADE AND HAVE BEEN AS HIGH AS TWENTY TWO THOUSAND DOLLARS FOR SPECULATORS THE CHICAGO MERC UNDER PRESSURE FROM REGULATORS RAISED MARGIN REQUIREMENTS ON STOCK INDEX FUTURES AFTER THE OCTOBER NINETEEN EIGHTY SEVEN CRASH AND AGAIN AFTER THE IRAQ INVASION OF KUWAIT BUT DURING THE PAST TWO YEARS THE MERC HAS BEEN LOWERING THE INITIAL MARGIN REQUIREMENTS ON STOCK INDEX FUTURES THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER SAID THE MERC'S MOVE SUGGESTS THE EXCHANGE IS CONCERNED ABOUT THE LEVEL OF SPECULATION IN THE MARKET IT MEANS THAT THE PEOPLE WHO RUN THE EXCHANGE THINK THAT SPECULATION IS GETTING A LITTLE BIT SCARY AND THEY ARE MAKING IT HARDER FOR PEOPLE TO SPECULATE HE SAID WESTERN RESOURCES INCORPORATED SAID IT WOULD REDEEM NINETY NINE MILLION DOLLARS OF SEVERAL SERIES OF ITS FIRST MORTGAGE BONDS MARCH FOURTH THE COMPANY SAID IT WOULD REDEEM ITS EIGHT AND ONE EIGHTH PERCENT SERIES DUE TWO THOUSAND SEVEN AT A PRICE OF ONE HUNDRED ITS SEVEN AND FIVE EIGHTHS PERCENT SERIES DUE NINETEEN NINETY NINE AT ONE HUNDRED POINT ONE TWO AND ITS EIGHT AND FIVE EIGHTHS PERCENT SERIES DUE TWO THOUSAND SEVENTEEN AT ONE HUNDRED FIVE POINT OH FIVE FOUR THE BONDS WILL BE REDEEMED WITH FUNDS THAT RESULTED FROM THE COMPANY'S SALE OF ITS MISSOURI GAS PROPERTIES TO SOUTHERN UNION COMPANY LAST MONTH WESTERN RESOURCES PROVIDES NATURAL GAS SERVICE IN KANSAS AND NORTHERN OKLAHOMA AND ELECTRIC SERVICE TO CUSTOMERS IN EASTERN AND CENTRAL KANSAS FRANCHISEES' NEGLIGENCE CAN COST FRANCHISERS PLENTY FRANCHISERS HAVE LONG ARGUED THAT FRANCHISEES ARE INDEPENDENT BUSINESSES WITH LEGAL RESPONSIBILITY FOR THEIR MISSTEPS BUT INCREASINGLY COURTS ARE HOLDING THAT THE CONTROL FRANCHISERS EXERCISE OVER THEIR CHAINS MAKES THEM LIABLE TOO SPECIALISTS SAY THE LESS LEEWAY GIVEN TO FRANCHISEES THE GREATER THE RISK TO FRANCHISERS THEY ADD IN RECENT YEARS QUOTE THERE HAS BEEN AN EXPLOSION OF CASES HOLDING FRANCHISERS VICARIOUSLY LIABLE FOR THE ACTS AND OMISSIONS OF FRANCHISEES QUOTE SAYS DAVID J. KAUFMANN A NEW YORK FRANCHISING LAWYER CONSIDER FRANCHISER DOMINO'S PIZZA INCORPORATED THE TARGET OF LAWSUITS OVER ITS FORMER PRACTICE OF PROMISING PIZZA DELIVERY WITHIN THIRTY MINUTES A PRACTICE ALLEGED TO CAUSE ITS DRIVERS TO RUSH THE ANN ARBOR MICHIGAN FRANCHISER ABANDONED THAT POLICY IN DECEMBER AFTER A MISSOURI JURY AWARDED SEVENTY EIGHT MILLION DOLLARS IN MOSTLY PUNITIVE DAMAGES TO A SAINT LOUIS WOMAN WHO HAD BEEN INJURED BY A DRIVER FOR A DOMINO'S FRANCHISE THE PLAINTIFF CONTENDED THAT THE FRANCHISER'S DELIVERY POLICY WAS NEGLIGENT AND MADE IT LIABLE FOR HER INJURY WHEN IT COMES TO LEGAL PRECEDENT THOUGH DOMINO'S AND OTHER FRANCHISERS MAY HAVE MORE TO WORRY ABOUT IN A FLORIDA CASE THAT MORE EXPLICITLY ADDRESSES THE ISSUE OF SO CALLED VICARIOUS LIABILITY FOR FRANCHISEES' ERRORS AN APPEALS COURT IN WEST PALM BEACH REJECTED THE NOTION THAT AS A MATTER OF LAW DOMINO'S CAN'T BE SUED OVER AN AUTO ACCIDENT ALLEGEDLY TRIGGERED BY A TRUCK DRIVER FOR A DOMINO'S FRANCHISE IN A SUIT IN OKEECHOBEE COUNTY COURT BROTHERS RALPH AND RICKY PARKER SAY THEY WERE ATTEMPTING TO AID VICTIMS OF A TWO VEHICLE MISHAP IN THAT COUNTY IN NINETEEN EIGHTY SIX WHEN A THIRD VEHICLE STRUCK THEM THEY SUED BOTH DOMINO'S AND ITS FRANCHISEE J. AND B. ENTERPRISES INCORPORATED OKEECHOBEE IN A SUMMARY JUDGMENT IN NINETEEN NINETY TWO HOWEVER THE TRIAL COURT SAID DOMINO'S WASN'T LIABLE AS THE FRANCHISEE IS AN INDEPENDENT CONTRACTOR THE PARKERS APPEALED THAT RULING AND WON A DECISION THAT THE FRANCHISER POSSIBLY CAN BE HELD LIABLE DEPENDING ON HOW MUCH CONTROL IT EXERCISED OVER THE FRANCHISEE THE CASE WAS REMANDED TO THE TRIAL COURT DOMINO'S IS ASKING THE APPEALS COURT TO RECONSIDER THE RULING FRANCHISING IS BASED ON THE PREMISE THAT THE FRANCHISEE IS AN INDEPENDENT BUSINESS OWNER SAYS JOEL F. GRAZIANI AN ANN ARBOR ATTORNEY FOR THE FRANCHISER BUT PHILIP M. BURLINGTON A WEST PALM BEACH ATTORNEY FOR THE PARKERS SAYS THE LEVEL OF CONTROL BY DOMINO'S OVER ITS FRANCHISEE IS SO GREAT THAT THE FRANCHISER SHARES RESPONSIBILITY FOR ANY INJURIES THAT THE FRANCHISEE CAUSES THE LEGAL PRINCIPLES THAT GOVERN THE APPEALS DECISION AREN'T NEW AND ARE VERY WELL ESTABLISHED HE SAYS ADMIRAL INMAN'S ZOE BAIRD PROBLEM AIDS MAID SERVICE FRANCHISERS SUCH FRANCHISERS SEE A SILVER LINING IN THE CLOUDS AROUND BOBBY RAY INMAN THE LATEST PUBLIC FIGURE TO BE EMBARRASSED BY REPORTS OF IMMIGRATION OR TAX PROBLEMS WITH HOUSEHOLD HELP DAVID G. MCKINNON PRESIDENT OF MOLLY MAID INCORPORATED ANN ARBOR SAYS A DOZEN POTENTIAL FRANCHISEES HAVE MENTIONED ADMIRAL INMAN'S TARDY PAYMENT OF TAXES FOR A WORKER AS ONE REASON THAT THEY SEE A MAID SERVICE FRANCHISE AS ATTRACTIVE WHEN CONSUMERS USE MAIDS FROM A FRANCHISE THE FRANCHISEE TAKES CARE OF THE TAXES AND OTHER PAPERWORK MOLLY MAID SAYS IT SOLD THIRTY THREE U. S. FRANCHISES LAST YEAR UP FROM SEVENTEEN THE YEAR BEFORE IN PART BECAUSE BUYERS EXPECT GROWING NUMBERS OF CUSTOMERS OTHERS ALSO SAY THE FIELD IS BOOMING BUT MOSTLY FOR DEMOGRAPHIC REASONS THE NANNYGATE STUFF IS SMALL POTATOES SAYS DON M. HAY PRESIDENT OF MAID BRIGADE INCORPORATED ATLANTA THAT FRANCHISER SAYS SYSTEM WIDE REVENUE SURGED FIFTEEN PERCENT LAST YEAR TO FIFTEEN MILLION DOLLARS MOSTLY BECAUSE GROWING NUMBERS OF WOMEN WORK OUTSIDE THE HOME A NEGATIVE ARTICLE ON DECORATING DEN CREATES AN UPROAR WITH JAMES S. BUGG SENIOR EXPECTED TO TAKE OVER FEBRUARY THIRTEENTH AS CHAIRMAN OF THE INTERNATIONAL FRANCHISE ASSOCIATION A MCCALL'S MAGAZINE REPORT ON DECORATING DEN SYSTEMS INCORPORATED IS TOPIC A IN CURRENT INDUSTRY TALK MR. BUGG IS PRESIDENT OF THE FRANCHISER COPIES OF THE ARTICLE FAXED BY GOSSIPS ARE REACHING FRANCHISING PEOPLE WHO DON'T NORMALLY READ THE WOMEN'S MAGAZINE IT IS CERTAINLY AN EXPLOSIVE ARTICLE SAYS ONE EAST COAST PUBLIC RELATIONS SPECIALIST THE PIECE SHATTERED DREAMS WOMEN WHO LOST ALMOST EVERYTHING FOCUSES ON DISGRUNTLED HOME DECORATING FRANCHISEES OF DECORATING DEN CITING COMPANY FIGURES IT SAYS DECORATING DEN HAS AN UNUSUALLY HIGH TERMINATION RATE FOR FRANCHISES AND ALSO HAS MANY FRANCHISEES WHO FAIL TO MAKE MONEY DECORATING DEN CONFIRMS THAT FIVE HUNDRED SEVENTY SEVEN FRANCHISES SHUT DOWN IN THE THREE YEARS ENDED DECEMBER THIRTY FIRST NINETEEN NINETY TWO ON THAT DATE ONE THOUSAND ONE HUNDRED THIRTY EIGHT FRANCHISES WERE IN OPERATION THE BETHESDA MARYLAND FRANCHISER CONTENDS THAT THE TERMINATION RATE IS ACCEPTABLE FOR AN INEXPENSIVE HOME BASED FRANCHISE IN PART BECAUSE SOME PEOPLE ABANDON SUCH VENTURES AFTER TRYING THEM OUT FOR A WHILE AND IT SAYS MCCALL'S MOSTLY IGNORED HAPPY FRANCHISEES DECORATING DEN SAYS COMPANY OFFICIALS AND THEIR ALLIES HAVE FIRED OFF DOZENS OF INDIGNANT LETTERS NOT ONLY TO MCCALL'S BUT ALSO TO THE INDIVIDUAL DIRECTORS OF THE MAGAZINE'S OWNER NEW YORK TIMES COMPANY QUOTE A TABLOID HATCHET JOB QUOTE WROTE STEVEN C. BURSTEN FOUNDER OF DECORATING DEN AND THE TEN YEAR OLD DAUGHTER OF ONE HAPPY FRANCHISEE COMPLAINED THAT MCCALL'S IS VERRY PREGADOS THAT IS VERY PREJUDICED AGAINST THE FRANCHISER MR. BUGG MAINTAINS IF WE WERE EVEN HALF AS BAD AS THIS ARTICLE PURPORTS US TO BE THE MARKET FORCES THAT OPERATE IN OUR ECONOMY WOULD HAVE ENDED OUR COMPANY YEARS AGO KATE WHITE EDITOR IN CHIEF OF MCCALL'S SAYS SHE STANDS BY THE ARTICLE AS VERY FAIR AND BALANCED THE MAGAZINE SAYS IT HAS ALSO RECEIVED LETTERS FROM PEOPLE APPLAUDING THE ARTICLE MR. BUGG'S AGGRESSIVE DEFENSE HAS DONE NOTHING TO SILENCE HIS CRITICS OR THE I. F. A.'S THE FRANCHISER GROUP HAS BEEN TRYING TO POLISH THE INDUSTRY'S IMAGE BUT IS JIM BUGG'S THE BEST FACE TO PUT FORWARD OBVIOUSLY NOT SAYS SUSAN P. KEZIOS A FRANCHISEE ADVOCATE IN CHICAGO MR. BUGG SAYS HE INTENDS TO SERVE AS I. F. A. CHAIRMAN IF MEMBERS RATIFY HIS SELECTION BRIEFS THE I. F. A. PREDICTS RECORD ATTENDANCE TOPPING ONE THOUSAND FOR ITS ANNUAL CONVENTION TO BE HELD IN LAS VEGAS FEBRUARY THIRTEENTH TO SIXTEEN AT THE CONVENTION THE WORKSHOP ON PUBLIC RELATIONS WILL BE MODERATED BY PATTI COONS SENIOR VICE PRESIDENT OF DECORATING DEN AMBER'S STORES INCORPORATED SAID ITS SALES ROSE TWENTY NINE PERCENT IN JANUARY TO FOUR POINT FIVE MILLION DOLLARS FROM THREE POINT FIVE MILLION DOLLARS A YEAR EARLIER THE ARTS AND CRAFTS RETAILER'S SALES AT STORES OPENED FOR AT LEAST ONE YEAR FELL TWELVE POINT FOUR PERCENT FOR THE YEAR ENDED JANUARY THIRTY FIRST AMBER'S SALES ROSE FORTY SEVEN PERCENT TO SIXTY TWO MILLION DOLLARS FROM FORTY TWO POINT TWO MILLION DOLLARS SAME STORE SALES FELL SEVEN POINT SIX PERCENT THE SECURITIES AND EXCHANGE COMMISSION SETTLED CIVIL FRAUD CHARGES AGAINST BROKER DEALER STRATTON OAKMONT INCORPORATED AND THREE OF ITS TOP OFFICERS THE LAKE SUCCESS N. Y. COMPANY WHICH DIDN'T ADMIT OR DENY CHARGES AGREED TO QUOTE DISGORGEMENT QUOTE OF ONE POINT FIVE MILLION DOLLARS PLUS PREJUDGMENT INTEREST OF FIVE HUNDRED EIGHTEEN THOUSAND SIX HUNDRED TWENTY TWO DOLLARS AND CIVIL PENALTIES OF FIVE HUNDRED THOUSAND DOLLARS THE S. E. C. ORIGINALLY CHARGED IN MARCH NINETEEN NINETY TWO THAT STRATTON'S FOUR TOP OFFICERS USED AGGRESSIVE STOCK SELLING TACTICS TO MAKE AT LEAST ELEVEN MILLION DOLLARS IN TWO EPISODES OF MANIPULATING THE SHARES OF NOVA CAPITAL INCORPORATED ATLANTA THE S. E. C. HAD CHARACTERIZED STRATTON AS A BOILER ROOM OPERATION THAT USED UNTRAINED BROKERS FOR MASSIVE COLDCALL SELLING UNDER THE SETTLEMENT STRATTON OAKMONT REMAINS IN BUSINESS BUT THREE TOP OFFICERS AGREED TO FINES AND STIFF PENALTIES THE BROKERAGE FIRM ALSO AGREED TO SET UP A FUND TO FIRST PAY INDIVIDUAL CLIENTS WHO SUFFERED LOSSES AS A RESULT OF THEIR PURCHASES AND SALES OF NOVA'S STOCK AND THEN FOR CUSTOMERS WHO HAVE WON ARBITRATION AWARDS AGAINST THE FIRM FORMER STRATTON OAKMONT PRESIDENT JORDAN BELFORT WILL PAY A CIVIL PENALTY OF ONE HUNDRED THOUSAND DOLLARS AND HAS AGREED TO BE BARRED FROM ASSOCIATION WITH ANY BROKER DEALER INVESTMENT ADVISER INVESTMENT COMPANY OR MUNICIPAL SECURITIES DEALER FORMER SECRETARY KENNETH GREENE WILL PAY A ONE HUNDRED THOUSAND DOLLAR CIVIL PENALTY AND IS BARRED WITH A RIGHT TO REAPPLY AFTER FIVE YEARS TO BECOME ASSOCIATED WITH BROKERS INVESTMENT COMPANIES OR SIMILAR ENTITIES FORMER VICE PRESIDENT DANIEL PORUSH WHO HAS BEEN PRESIDENT OF THE FIRM FOR THE PAST SIX MONTHS WAS SUSPENDED IN A SALES SUPERVISORY CAPACITY FOR TWELVE MONTHS AND ORDERED TO PAY A CIVIL PENALTY OF ONE HUNDRED THOUSAND DOLLARS HE WILL CONTINUE AS PRESIDENT OF THE FIRM STRATTON OAKMONT SAID IT WAS EXTRAORDINARILY PLEASED WITH THE S. E. C. SETTLEMENT NEW YORK ATTORNEY IRA LEE SORKIN OUTSIDE COUNSEL FOR THE FIRM NOTED THAT STRATTON OAKMONT HAD SET UP A RESERVE IN ANTICIPATION OF A SETTLEMENT THE FIRM HAS MORE THAN SUFFICIENT FUNDS TO KEEP ITS THREE HUNDRED EMPLOYEES AND BROKERS IN BUSINESS AND MEET ALL REGULATORY FINANCIAL REQUIREMENTS HE SAID NICHOLS RESEARCH CORPORATION SAID ITS PRESIDENT AND CHIEF OPERATING OFFICER LAWRENCE R. GREENWOOD ASKED TO BE QUOTE PHASED OUT QUOTE OF HIS CURRENT POSITIONS MR. GREENWOOD HAS SERVED IN THE POSITIONS FOR TWO YEARS HE COULDN'T BE REACHED FOR COMMENT AND OFFICIALS AT NICHOLS DIDN'T RETURN PHONE CALLS A STATEMENT BY THE COMPANY SAID MR. GREENWOOD'S TRANSITION WILL OCCUR DURING NINETEEN NINETY FOUR AND WILL ALLOW HIM TO PURSUE OTHER BUSINESS INTERESTS THE COMPANY ADDED THAT MR. GREENWOOD DURING THE TRANSITION WILL CONTINUE TO FOCUS ON CERTAIN AREAS OF BUSINESS DEVELOPMENT AT NICHOLS NICHOLS PROVIDES TECHNICAL SERVICES FOR STATE GOVERNMENTS THE DEPARTMENT OF DEFENSE AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION IN NASDAQ STOCK MARKET TRADING YESTERDAY THE COMPANY'S STOCK ROSE FIFTY CENTS TO FIFTEEN DOLLARS AND TWENTY FIVE CENTS A SHARE THE CLINTON ADMINISTRATION AND CONGRESS ARE ABOUT TO TRY TO ALLEVIATE THE SUPERHEADACHE KNOWN AS SUPERFUND AT A NEWS CONFERENCE AND CONGRESSIONAL HEARING TODAY ENVIRONMENTAL PROTECTION ADMINISTRATOR CAROL BROWNER WILL UNVEIL DETAILS OF THE ADMINISTRATION'S PLAN TO REWRITE THE SUPERFUND LAW WHICH GOVERNS THE CLEANUP OF ABANDONED HAZARDOUS WASTE DUMPS OF ALL THE NATION'S ENVIRONMENTAL LAWS IT IS ARGUABLY THE ONE MOST HATED BY BUSINESSES HAVING ALREADY COST THEM AN ESTIMATED FIVE POINT SEVEN BILLION DOLLARS IN CLEANUP AND LITIGATION COSTS WITH NO END IN SIGHT ADMINISTRATION OFFICIALS CLAIM THEIR PROPOSAL IS DESIGNED TO REDUCE THE COST TO BUSINESSES WITHOUT DIMINISHING THE BENEFITS FOR THE ENVIRONMENT IN FACT BOTH BUSINESS GROUPS AND ENVIRONMENTALISTS WILL LIKELY HAVE COMPLAINTS WITH THE NEW PROPOSAL BUT IN GENERAL THE NEW SUPERFUND PLAN PROVIDES FURTHER EVIDENCE THAT THE CLINTON ADMINISTRATION IS FAR MORE PRO BUSINESS IN ITS APPROACH TO THE ENVIRONMENT THAN ITS CAMPAIGN RHETORIC WOULD HAVE SUGGESTED WHAT'S WRONG WITH THE CURRENT SUPERFUND LAW IN HIS FIRST SPEECH TO CONGRESS LAST YEAR PRESIDENT CLINTON DECLARED QUOTE I'D LIKE TO USE THAT SUPERFUND TO CLEAN UP POLLUTION FOR A CHANGE AND NOT JUST PAY LAWYERS QUOTE FROM BUSINESSES AND THE ENVIRONMENTAL COMMUNITY AS WELL THE MAIN COMPLAINT IS THAT THE LAW ENACTED IN NINETEEN EIGHTY AND REVISED IN NINETEEN EIGHTY SIX HAS LED TO TOO MANY LAWSUITS AND TOO LITTLE CLEANUP OF THE THIRTEEN POINT FOUR BILLION DOLLARS THAT BUSINESS AND GOVERNMENT HAVE SPENT ON SUPERFUND ACCORDING TO AN ESTIMATE BY THE CONGRESSIONAL BUDGET OFFICE THREE BILLION DOLLARS HAS BEEN SPENT ON LITIGATION MOST OF THE BUSINESS COMMUNITY BLAMES THE LITIGATION EXPLOSION ON THE FACT THAT AS CURRENTLY WRITTEN THE LAW CALLS FOR JOINT AND SEVERAL LIABILITY IN CLEANING UP TOXIC WASTE SITES THAT MEANS AN INDIVIDUAL COMPANY CAN BE HELD FINANCIALLY LIABLE FOR CLEANUP OF AN ENTIRE DUMP SITE EVEN IF THE COMPANY DUMPED ONLY A MINUTE AMOUNT OF WASTE THERE AND EVEN IF THAT WASTE WAS DUMPED LAWFULLY AT THE TIME ANY COMPANY HELD LIABLE THEN HAS A STRONG INCENTIVE TO TURN AROUND AND SUE THE OTHER COMPANIES RESPONSIBLE THE RESULT IS A FLURRY OF LAWSUITS THAT CAN DELAY CLEANUP BUSINESS GROUPS AND ESPECIALLY THE INSURANCE COMPANIES WHICH OFTEN END UP PAYING CLEANUP BILLS ARGUE THAT THEY SHOULDN'T BE HELD LIABLE FOR TOXIC WASTES DUMPED BEFORE THE LAW WAS ENACTED IN NINETEEN EIGHTY OR EVEN BEFORE NINETEEN EIGHTY SIX WHEN FEDERAL RECORD KEEPING REQUIREMENTS MADE IT EASIER TO DETERMINE WHICH COMPANIES DUMPED WHICH MATERIALS AT A SITE NOT COINCIDENTALLY NINETEEN EIGHTY SIX IS ALSO WHEN INSURERS STARTED WRITING POLICIES THAT EXPLICITLY EXCLUDE LIABILITY FOR HAZARDOUS WASTE CLEANUP ENVIRONMENTALISTS ON THE OTHER HAND LIKE THE CURRENT SYSTEM BECAUSE IT STRENGTHENS THE GOVERNMENT'S HAND IN REACHING OUT OF COURT SETTLEMENTS AND ENFORCES THE PRINCIPLE THAT NO MATTER WHAT THE LAW SAID AT ANY GIVEN TIME IT IS THE POLLUTER AND NOT THE GENERAL PUBLIC THAT PAYS FOR CLEANUP HOW WOULD THE CLINTON PLAN CHANGE LIABILITY UNDER THE SUPERFUND LAW THE PRESIDENT'S PLAN WHICH IS EXPECTED TO BE INTRODUCED IN THE HOUSE BY DEMOCRATIC REPRESENTATIVE AL SWIFT OF WASHINGTON AND IN THE SENATE BY DEMOCRATIC SENATOR FRANK LAUTENBERG OF NEW JERSEY WOULD LIMIT THOUGH NOT ELIMINATE LAWSUITS BASED ON THE TWO CONTROVERSIAL TYPES OF LIABILITY UNDER THE PRESIDENT'S PLAN A NONGOVERNMENTAL ARBITRATOR SUCH AS A NONPROFIT GROUP WOULD DETERMINE WHICH COMPANIES ARE RESPONSIBLE FOR WHICH WASTES AT A GIVEN DUMP AND ALLOCATE COSTS AMONG THEM ACCORDINGLY COMPANIES WOULDN'T HAVE TO ACCEPT THIS NONJUDICIAL DECISION BUT IF THEY DID THEY COULDN'T BE SUED BY OTHER BUSINESSES SEEKING TO RID THEMSELVES OF PART OF THEIR LIABILITY FOR SITE CLEANUP FOR COMPANIES THAT FIGHT THE ENVIRONMENTAL PROTECTION AGENCY IN COURT JOINT AND SEVERAL LIABILITY WOULD STILL EXIST BUSINESSES WOULD STILL BE LIABLE FOR DUMPING THAT OCCURRED PRIOR TO NINETEEN EIGHTY SIX BUT THE FEDERAL GOVERNMENT WOULD CREATE A NEW FUND TO SETTLE LAWSUITS BETWEEN POLLUTING BUSINESSES AND THEIR INSURERS WITH AN AIM TOWARD REDUCING SUCH SUITS BY NINETY FIVE PERCENT THE FUND WOULD BE CREATED BY TAXING PROPERTY AND CASUALTY INSURERS FIVE HUNDRED MILLION DOLLARS IN EACH OF THE FIRST TWO YEARS AFTER THE LAW TAKES EFFECT AND AS MUCH AS SEVEN HUNDRED MILLION DOLLARS A YEAR IN THE FOLLOWING THREE YEARS DEPENDING ON THE LAWS OF THE STATE IN WHICH THEY ARE SUING POLLUTING COMPANIES COULD GET TWENTY PERCENT FORTY PERCENT OR SIXTY PERCENT OF THEIR CLEANUP COSTS FOR WASTES DUMPED BEFORE NINETEEN EIGHTY SIX FROM THE NEW FUND IN STATES THAT TEND TO FAVOR INSURERS IN SUCH CASES SUCH AS FLORIDA AND NEW YORK THE FUND WOULD LIKELY PAY TWENTY PERCENT IT WOULD LIKELY PAY SIXTY PERCENT IN STATES THAT TEND TO FAVOR POLLUTING COMPANIES SUCH AS NEW JERSEY WHAT OTHER SIGNIFICANT CHANGES ARE IN THE BILL REFLECTING A LONGSTANDING CONSENSUS BETWEEN THE E. P. A. AND THE BUSINESS COMMUNITY THE SUPERFUND PLAN WOULD ALLOW FEDERAL OFFICIALS GREATER FLEXIBILITY TO APPROVE DIFFERENT LEVELS OF CLEANUP FOR A SUPERFUND SITE DEPENDING ON THAT SITE'S EXPECTED FUTURE USE IN OTHER WORDS THE STANDARD WOULD BE DIFFERENT IF THE SITE IS GOING TO BECOME A PARKING LOT OR IF IT IS GOING TO BECOME A PLAYGROUND BUT THE E. P. A. WOULD MOVE MORE QUICKLY ON HOT SPOTS OR AREAS WITHIN WASTE SITES WHERE DANGER FROM CONTAMINATION IS PARTICULARLY HIGH OVERALL THE ADMINISTRATION ESTIMATES THE CHANGES IN STANDARDS WILL REDUCE CLEANUP COSTS BY ROUGHLY TWENTY FIVE PERCENT THOUGH THAT COULD CHANGE AS THE BILL MAKES ITS WAY THROUGH CONGRESS IN ADDITION PURCHASERS OF ABANDONED URBAN PROPERTIES THAT HAVE ALREADY BEEN DESIGNATED AS SUPERFUND SITES WOULD BE EXEMPTED FROM SUPERFUND LIABILITY A MOVE THAT IS AIMED AT EASING FINANCIAL BARRIERS TO REVITALIZING URBAN AREAS WHAT ARE PROSPECTS FOR THE BILL'S PASSAGE ENVIRONMENTAL AND BUSINESS GROUPS ARE BOTH LIKELY TO BE CRITICAL OF PARTS OF THE BILL BUT WILL PROBABLY FOCUS MOST OF THEIR EFFORTS ON QUIETLY CHANGING THE BILL AS IT MAKES ITS WAY THROUGH CONGRESS THE STRONGEST CRITICISM OF THE ADMINISTRATION BILL WILL COME FROM AN UNLIKELY ALLIANCE BETWEEN REVEREND BEN CHAVIS EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE AND SEVERAL INSURANCE AND OTHER BUSINESSES INCLUDING AMERICAN INTERNATIONAL GROUP INCORPORATED TEXACO INCORPORATED SHELL OIL COMPANY PHILLIPS PETROLEUM COMPANY AND OLIN CORPORATION MR. CHAVIS A LEADER OF THE ENVIRONMENTAL JUSTICE MOVEMENT SAYS THAT THE QUICKEST WAY TO CLEAN UP SUPERFUND SITES WHICH ARE DISPROPORTIONATELY LOCATED IN MINORITY COMMUNITIES IS TO ELIMINATE THE TWO CONTROVERSIAL TYPES OF LIABILITY AND PAY FOR CLEANUP ENTIRELY WITH TAXES ON BUSINESSES AND INDIVIDUALS VIRTUALLY EVERYONE AGREES THAT THE LEGISLATION ISN'T LIKELY TO MOVE QUICKLY THROUGH CONGRESS AND THAT FINAL PASSAGE MAY NOT OCCUR BEFORE THE PRESENT LAW EXPIRES NEXT FALL IF THAT IS THE CASE CONGRESS WILL HAVE TO PASS A STOPGAP BILL LATER THIS YEAR CONTINUING FUNDING FOR THE PROGRAM SUCH A MOVE HOWEVER IS LIKELY TO SLOW THE PACE OF CLEANUPS HOW WILL THE TAX ON INSURERS BE ASSESSED THE FEE AS THE ADMINISTRATION PREFERS TO CALL IT WILL BE DETERMINED BY TWO FORMULAS ONE OF THEM BASED ON PREMIUMS CHARGED FOR PROPERTY AND CASUALTY POLICIES WRITTEN BETWEEN NINETEEN SEVENTY AND NINETEEN EIGHTY FIVE AND THE OTHER FOR POLICIES WRITTEN AFTER NINETEEN EIGHTY FIVE NEWS CORPORATION SAID AFTER TAX PROFIT BEFORE SPECIAL ITEMS FOR ITS FISCAL FIRST HALF ENDED DECEMBER THIRTY FIRST ROSE TWENTY EIGHT PERCENT TO SIX HUNDRED TWENTY FOUR POINT NINE MILLION DOLLARS AUSTRALIAN DOLLARS FOUR HUNDRED FORTY SEVEN MILLION U. S. DOLLARS WHILE REVENUE GREW MORE THAN NINE PERCENT TO FIVE POINT EIGHT THREE BILLION AUSTRALIAN DOLLARS NET INCOME INCLUDING SPECIAL ITEMS WAS SEVEN HUNDRED SIXTY EIGHT POINT NINE MILLION AUSTRALIAN DOLLARS UP SEVENTY PERCENT FROM FOUR HUNDRED FIFTY TWO POINT EIGHT MILLION AUSTRALIAN DOLLARS INTEREST EXPENSE FELL MORE THAN ELEVEN PERCENT TO THREE HUNDRED FORTY THREE POINT NINE MILLION AUSTRALIAN DOLLARS DUE TO LOWER DEBT LEVELS IN THE U. S. NEWS CORPORATION'S MOVIE BUSINESS REPORTED THAT OPERATING PROFIT MORE THAN DOUBLED AIDED BY THE FILM QUOTE MRS. DOUBTFIRE QUOTE WHICH HAS GROSSED OVER ONE HUNDRED SEVENTY MILLION DOLLARS SO FAR AND IS JUST ENTERING WORLDWIDE DISTRIBUTION THE TELEVISION BUSINESS HAD RECORD EARNINGS THE COMPANY SAID ALTHOUGH RESULTS WERE AFFECTED BY LOSSES FROM THE CANCELLATION OF THE CHEVY CHASE SHOW OPERATING PROFITS FROM MAGAZINES AND INSERTS FELL TWENTY FOUR PERCENT DUE TO PRICING PRESSURES WHILE BOOK PUBLISHER HARPERCOLLINS'S WORLD WIDE OPERATING PROFITS ROSE SEVEN PERCENT ON A SIX PERCENT REVENUE GAIN IN THE U. K. NEWSPAPER OPERATING RESULTS FELL THIRTY PERCENT DUE TO PRICE CUTS ALTHOUGH THE COMPANY NOTED CIRCULATON GAINS AT THE SUN AND TIMES NEWSPAPERS AUSTRALIAN NEWSPAPERS' OPERATING PROFIT ROSE AN UNSPECIFIED AMOUNT WHILE THE STAR T. V. OPERATION HAD A SMALL LOSS BUT HAS SHOWN ENCOURAGING GROWTH NEWS CORPORATION SAID SEPARATELY PATRICK PURCELL PUBLISHER OF NEWS CORPORATION'S BOSTON HERALD IS UNDERSTOOD TO BE NEGOTIATING TO BUY THE NEWSPAPER FROM NEWS CORPORATION FOR AN ESTIMATED TEN MILLION DOLLARS NEWS CORPORATION DECLINED COMMENT SOME LOCAL GOVERNMENTS HAVE RAIDED THEIR AIRPORTS FOR HUNDREDS OF MILLIONS OF DOLLARS IN FEDERAL GRANT MONEY OVER THE PAST TWELVE YEARS ACCORDING TO A CONGRESSIONAL STUDY THE REPORT RELEASED YESTERDAY BY THE HOUSE TRANSPORTATION APPROPRIATIONS SUBCOMMITTEE FOUND THAT SEVENTEEN OF THIRTY THREE AIRPORTS SURVEYED HAVE HAD MONEY DIVERTED FOR NONAVIATION PURPOSES SINCE NINETEEN EIGHTY TWO AND THAT THE DIVERTED FUNDS ALMOST NINE HUNDRED MILLION DOLLARS NEARLY EQUALED THE FEDERAL GRANTS THE SEVENTEEN AIRPORTS RECEIVED ALTHOUGH THE REPORT SAYS AT LEAST SIX HUNDRED FORTY MILLION DOLLARS OF THE DIVERSION WAS LEGAL SOME OF IT WAS IMPROPER THE STUDY IS LIKELY TO FUEL AIRLINES' CLAIMS THAT AIRPORTS ARE INCREASING SURCHARGES ON PASSENGERS AND AIRLINES SO THEY CAN PUMP EXTRA CASH INTO THE CITIES AND STATES THAT RUN THE AIRPORTS QUOTE AS WE HAVE SUSPECTED LOCAL OFFICIALS HAVE BECOME VERY CREATIVE IN FINDING WAYS TO CIRCUMVENT FEDERAL PROHIBITIONS AND GET MONEY OFF AIRPORTS QUOTE SAID JIM LANDRY PRESIDENT OF THE AIR TRANSPORT ASSOCIATION WHICH REPRESENTS AIRLINES THE ASSOCIATION HAS BEEN FIGHTING LOS ANGELES OVER A RECENT TRIPLING OF LANDING FEES AT LOS ANGELES INTERNATIONAL AIRPORT DIVERSION OF AIRPORT FUNDS FOR NONAVIATION USE IS GENERALLY ILLEGAL UNLESS AIRPORT AUTHORITIES RECEIVE SPECIAL PERMISSION FROM THE TRANSPORTATION DEPARTMENT HAWAII WHICH HAS PROPOSED INCREASING SIXFOLD LANDING FEES AT HONOLULU INTERNATIONAL AIRPORT DIVERTED MORE THAN THREE HUNDRED MILLION DOLLARS OF AIRPORT REVENUE TO OTHER PURPOSES OVER FOUR YEARS ACCORDING TO THE REPORT HAWAII DID SO WITH THE PERMISSION OF THE TRANSPORTATION DEPARTMENT AND OTHER AIRPORT OPERATORS HAVE RECEIVED SIMILAR EXEMPTIONS ALSO AIRPORTS THAT OPERATE UNDER PORT AUTHORITIES SUCH AS BOSTON'S LOGAN INTERNATIONAL AIRPORT ARE ALLOWED TO SHIFT FUNDS TO OTHER PORT AUTHORITY USES OTHER CITIES CLAIM THEY ARE EXEMPT INCLUDING SAN FRANCISCO WHICH HAS DIVERTED ONE HUNDRED NINETEEN MILLION DOLLARS FROM SAN FRANCISCO INTERNATIONAL AIRPORT OVER TWELVE YEARS TO SUBSIDIZE THE CITY'S PUBLIC TRANSPORTATION SYSTEM ACCORDING TO THE REPORT BUT THE TRANSPORTATION DEPARTMENT HASN'T DECIDED WHETHER THE CITY IS EXEMPT SOME AIRPORTS INCLUDING NEW ORLEANS INTERNATIONAL AIRPORT DONATE MONEY TO CHARITIES BUT THE CITED DIVERSIONS MORE OFTEN INVOLVE THINGS SUCH AS PAYMENTS IN LIEU OF TAXES AND MUNICIPAL USE OF AIRPORT PROPERTY THE LEGALITY OF SUCH PRACTICES WOULD DEPEND ON THE DETAILS OF EACH CASE AUSTIN TEXAS FOR EXAMPLE RUNS AN EIGHTEEN HOLE GOLF COURSE ON AIRPORT LAND AT ROBERT MUELLER MUNICIPAL AIRPORT ACCORDING TO THE HOUSE STUDY THE EIGHTY FOUR THOUSAND DOLLARS IN PROFIT THAT THE CITY KEPT LAST YEAR WAS A DIVERSION OF AIRPORT REVENUE CHARLES BROTHERS AN ASSISTANT CITY ATTORNEY IN AUSTIN DISAGREES SAYING THE CITY PAYS FOR MAINTAINING THE LAND AND THAT THE FEDERAL AVIATION ADMINISTRATION HASN'T RULED THAT THE ACCOUNTING FOR THE GOLF COURSE IS IMPROPER BOB CARR D. MICHIGAN CHAIRMAN OF THE HOUSE SUBCOMMITTEE SAID THE F. A. A.'S ENFORCEMENT OF DIVERSION RULES HAS BEEN NOTHING SHORT OF A JOKE HE SAID REGULATORS SHOULD CONSIDER STRIPPING FEDERAL FUNDS FROM AIRPORTS CAUGHT IMPROPERLY DIVERTING BUT SAID HE WOULDN'T SUPPORT GENERAL REDUCTIONS IN FEDERAL GRANTS TO AIRPORTS AIRPORTS HAVE BEEN CUT OFF FROM FEDERAL GRANT MONEY FOR SEVERAL MONTHS BECAUSE THE SENATE FAILED TO PASS AN AIRPORT FUNDING BILL LAST YEAR THE CLINTON ADMINISTRATION LAST WEEK PROPOSED A FOUR YEAR AIRPORT GRANT BILL TOTALING SEVEN BILLION DOLLARS L'OREAL S. A. WAS HIT WITH A ONE HUNDRED MILLION DOLLAR LAWSUIT IN NEW YORK STATE SUPREME COURT BASED ON ALLEGATIONS THAT THE FRENCH COSMETICS CONCERN COMPLIED UNLAWFULLY WITH THE ARAB LEAGUE'S BOYCOTT OF ISRAEL THE SUIT WAS BROUGHT BY TWO BROTHERS JEAN AND DAVID FRYDMAN WHO WERE PARTNERS WITH L'OREAL IN A FILM DISTRIBUTION COMPANY CALLED PARAVISION INTERNATIONAL S. A. THEY SAY THAT TO MOLLIFY THE ARAB BOYCOTT COMMITTEE THE FRENCH COSMETICS GROUP FORCED JEAN FRYDMAN FROM PARAVISION'S BOARD IN NINETEEN EIGHTY NINE BECAUSE HE IS JEWISH THEIR SUIT NAMES L'OREAL AND SEVERAL AFFILIATED COMPANIES AND EMPLOYEES IT ALLEGES THAT L'OREAL COMMITTED A VARIETY OF CRIMES INCLUDING BRIBERY IN COMPLYING WITH THE BOYCOTT L'OREAL SAID THAT IT HADN'T ANALYZED THE SUIT IN DETAIL BUT THAT THE FILING QUOTE APPEARS TO REPEAT PAST ALLEGATIONS WHICH ARE TOTALLY WITHOUT MERIT QUOTE THE FRYDMANS FIRST RAISED THE CHARGES IN NINETEEN NINETY ONE THEN AS NOW L'OREAL ACKNOWLEDGES HAVING MADE COMMITMENTS TO THE BOYCOTT OFFICE ALTHOUGH IT INSISTS THAT IT MERELY PROMISED TO DO THINGS IT WAS DOING FOR BUSINESS REASONS ANYHOW IT SAYS IT FOLLOWED THE ADVICE OF FRENCH OFFICIALS AND DIDN'T BREAK FRENCH LAW IT SAYS THE FRYDMANS ARE SIMPLY TRYING TO PRESSURE L'OREAL TO SETTLE AN OLD BUSINESS DISPUTE THEY HAVE WITH THE COMPANY AFTER FAILING TO WIN A SETTLEMENT IN FRANCE THE FRYDMANS ARE SUING IN NEW YORK IN PART BECAUSE U. S. ANTI BOYCOTT LAW IS STRONGER THAN FRENCH LAW THE FRYDMANS ALSO ALLEGE THAT EFFORTS TO WRONG THEM WERE HANDLED PARTLY IN THE U. S. BY A FORMER NAZI COLLABORATOR JACQUES CORREZE WHO ONCE HEADED L'OREAL'S U. S. DISTRIBUTION COMPANY COSMAIR INCORPORATED MR. CORREZE DIED IN NINETEEN NINETY ONE COSMAIR SAID MR. CORREZE WAS ONLY THE COMPANY'S NON EXECUTIVE CHAIRMAN WITHOUT ANY OPERATING RESPONSIBILITIES AND THAT THE LAWSUIT CLEARLY MISSTATES THE ACTIVITIES OF COSMAIR INCORPORATED DESPITE VIGOROUS WHITE HOUSE LOBBYING AN INFLUENTIAL BUSINESS GROUP VOTED TO SUPPORT A HEALTH CARE BILL THE ADMINISTRATION OPPOSES THE POLICY COMMITTEE OF THE BUSINESS ROUNDTABLE AN ORGANIZATION OF CHIEF EXECUTIVES OF SOME OF THE NATION'S LARGEST CORPORATIONS VOTED TO BACK QUOTE AS THE STARTING POINT QUOTE FOR HEALTH CARE REFORM A BILL AUTHORED BY REPRESENTATIVE JIM COOPER D. TENNESSEE AND SENATOR JOHN BREAUX D. LOUISIANA THE BILL HAS BEEN PUBLICLY CRITICIZED BY HILLARY RODHAM CLINTON AND OTHER ADMINISTRATION OFFICIALS PARTLY BECAUSE IT WOULDN'T MEET THE ADMINISTRATION'S GOAL OF GUARANTEEING HEALTH COVERAGE TO EVERY AMERICAN ROUNDTABLE OFFICIALS WOULDN'T DISCLOSE THE VOTE TALLY BUT A WHITE HOUSE OFFICIAL SAID IT WAS FORTY SIX TO FOURTEEN IN FAVOR OF THE COOPER PLAN THAT SUGGESTS THAT MORE THAN TWO WEEKS OF INTENSIVE WHITE HOUSE ARM TWISTING URGING ROUNDTABLE MEMBERS TO REFRAIN FROM PUBLICLY BACKING ANY PARTICULAR PIECE OF LEGISLATION FAILED TO SWAY EVEN A SINGLE VOTE TO THE PRESIDENT'S SIDE IN TELEPHONE CONFERENCE CALLS AMONG ROUNDTABLE MEMBERS JANUARY THIRTEENTH AND FOURTEEN THE GROUP'S POLICY COMMITTEE HAD VOTED FORTY FIVE TO FOURTEEN TO ADOPT A RESOLUTION SUPPORTING THE COOPER BREAUX BILL THE COOPER BILL WOULD PROVIDE TAX INCENTIVES TO HELP INDIVIDUALS BUY HEALTH INSURANCE WHILE THE CLINTON PLAN WOULD REQUIRE EMPLOYERS TO HELP BUY COVERAGE FOR THEIR WORKERS IN ADDITION THE COOPER BILL WOULD SEEK TO STIMULATE MARKET FORCES TO HOLD DOWN MEDICAL PRICES THE ADMINISTRATION PLAN WOULD DO THE SAME BUT IT WOULD LIMIT INSURANCE PREMIUMS IF MARKET FORCES FAIL HOURS BEFORE THE VOTE YESTERDAY ADMINISTRATION OFFICIALS INCLUDING MRS. CLINTON WERE STILL MAKING CALLS TO THE EXECUTIVES THE POLICY COMMITTEE WAS ACTING ON A RECOMMENDATION FROM THE GROUP'S HEALTHCARE TASK FORCE HEADED BY ROBERT WINTERS CHAIRMAN OF PRUDENTIAL INSURANCE COMPANY OF AMERICA THE TASK FORCE INCLUDES AMONG OTHERS A NUMBER OF INSURANCE FIRMS AND PHARMACEUTICAL COMPANIES THE ROUNDTABLE'S CHAIRMAN JOHN ONG CHIEF EXECUTIVE OFFICER OF B. F. GOODRICH COMPANY SAID THE GROUP WASN'T ENDORSING THE COOPER BILL FULLY BUT HE SAID IT WOULD BE THE BEST APPROACH BECAUSE IT FOSTERS COMPETITION WHICH YIELDS A BETTER HEALTH CARE PRODUCT FOR THE CONSUMER AT A LOWER PRICE THE CLINTON BILL HE SAID WOULD RELY TOO MUCH ON GOVERNMENT REGULATION ADMINISTRATION OFFICIALS EXPRESSED DISPLEASURE BUT NOT SURPRISE AFTER THE VOTE WE THINK IT WAS A MISTAKE AND WE REGRET THEIR DECISION SAID JEFF ELLER A WHITE HOUSE SPOKESMAN WE WILL CONTINUE TO SEEK CONSTRUCTIVE DIALOGUE WITH MEMBERS OF THE BUSINESS ROUNDTABLE AND BUSINESSES THROUGHOUT AMERICA THE PRESIDENT IS A LOT MORE CONCERNED ABOUT THE WAY THIS PROCESS ENDS THAN HOW IT BEGINS MR. COOPER HOWEVER WAS DELIGHTED I THOUGHT MAYBE THE MOMENTUM HAD SHIFTED AGAINST US HE SAID ALONG WITH STATEMENTS THIS WEEK BY THE NATIONAL GOVERNORS ASSOCIATION THE ROUNDTABLE ENDORSEMENT WILL HINDER WHITE HOUSE EFFORTS TO WIN APPROVAL OF THE SO CALLED EMPLOYER MANDATE MR. COOPER PREDICTED EARLIER MR. COOPER CLASHED DURING A HEARING WITH HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D. MICHIGAN AND REPRESENTATIVE HENRY WAXMAN D. CALIFORNIA CHAIRMAN OF THE PANEL'S HEALTH SUBCOMMITTEE ALTERNATELY BRASH AND THIN SKINNED HE SNAPPED AT MR. DINGELL QUOTE I LOOK FORWARD TO QUESTIONING THE CHAIRMAN ON HIS BILLS IN THE FUTURE QUOTE AND THE TENNESSEEAN'S PENCHANT FOR CLICHES CLEARLY EXASPERATED HIS OLDER COLLEAGUES I'M A NEW DEMOCRAT MR. COOPER SAID PROUDLY IN ONE EXCHANGE TO WHICH MR. WAXMAN ANSWERED YOU'RE A YOUNG DEMOCRAT THE MAJOR FOCUS OF THE HEARING WAS THE COOPER PLAN'S PROPOSED CAP ON CORPORATE DEDUCTIONS FOR EMPLOYEE HEALTH BENEFITS A TAX CHANGE THAT WOULD YIELD SUBSTANTIAL REVENUE WHILE SERVING AS AN INCENTIVE TO CONTROL FUTURE HEALTH COSTS BUDGET ESTIMATES INDICATE THE CAP WOULD SAVE THE TREASURY AS MUCH AS SEVENTY NINE BILLION DOLLARS OVER FIVE YEARS SOME OF THIS WOULD PAY FOR SUBSIDIES FOR LOW INCOME PEOPLE BUT ABOUT TWO THIRDS WOULD PAY FOR A NEW TAX DEDUCTION TO HELP PEOPLE PAY FOR HEALTH COVERAGE THE IDEA BORROWS FROM ONE ADVANCED BY EARLY PROPONENTS OF THE MANAGED COMPETITION SCHOOL OF HEALTH CARE REFORM WHO PROPOSED THAT WORKERS BE TAXED ON ANY BENEFITS ABOVE A BASIC LEVEL THE GOAL WOULD BE TO USE THE TAX CODE TO DISCOURAGE EXCESSIVELY GENEROUS HEALTH EXPENDITURES BUT THE INITIAL IDEA OF MORE INCOME TAXES WAS UNACCEPTABLE TO MANY CONSERVATIVES THE COOPER DEDUCTION SCHEME AVOIDS THIS PROBLEM BY TAKING TAX DEDUCTIONS AWAY FROM CORPORATIONS RATHER THAN INDIVIDUALS BUT IT WOULD TEND TO FAVOR THE WEALTHY BECAUSE BENEFITS REDISTRIBUTED IN THE FORM OF A NEW DEDUCTION WOULD BE WORTH MORE TO HIGHER INCOME INDIVIDUALS REPRESENTATIVE FRED GRANDY R. IOWA A MEMBER OF THE HOUSE WAYS AND MEANS COMMITTEE AND LEAD CO SPONSOR OF THE COOPER BILL ACKNOWLEDGED IT MAY BE NECESSARY TO MAKE ADJUSTMENTS IN THE PROPOSED INDIVIDUAL DEDUCTION AND REPRESENTATIVE JAMES GREENWOOD R. PENNSYLVANIA AN IMPORTANT SWING VOTE ON THE ENERGY AND COMMERCE PANEL ARGUED FOR A MORE GENEROUS DEFINITION OF WHAT BASIC BENEFIT COSTS CORPORATIONS COULD DEDUCT IN THE SPIRIT OF TAPPING JOSEPH KENNEDY TO OVERHAUL THE SECURITIES AND EXCHANGE COMMISSION SIXTY YEARS AGO WHO BETTER TO PRESCRIBE CHANGES FOR THE TROUBLED INSTITUTION OF CONGRESS THAN TONY COELHO THE FIFTY ONE YEAR OLD MR. COELHO AFTER A METEORIC RISE RESIGNED AS HOUSE DEMOCRATIC WHIP IN NINETEEN EIGHTY NINE UNDER A CLOUD OF ETHICAL SUSPICION HE HAS GONE ON TO ACHIEVE STUNNING SUCCESS WITH WERTHEIM SCHRODER AND COMPANY A WALL STREET INVESTMENT FIRM IN THE PROCESS HE WAS CLEARED OF ANY LEGAL WRONGDOING HE STILL POSSESSES ENORMOUS AFFECTION FOR CONGRESS BUT BRINGS A PERSPECTIVE THAT COMES ONLY FROM DISTANCE SITTING IN ONE OF HIS OFFICES LATE LAST WEEK SURROUNDED BY PICTURES AND MEMORABILIA OF HIS EARLIER LIFE THE FORMER CALIFORNIA DEMOCRATIC LAWMAKER ZEROS IN ON WHAT'S WRONG QUOTE CONGRESS HAS BECOME STAGNANT IT HASN'T GROWN WITH THE CHANGES THAT HAVE OCCURRED IN SOCIETY THEY HAVE CREATED MORE POWER CENTERS AND WITH THEM MORE OPPORTUNITIES FOR GRIDLOCK THESE ARE NOT ONLY LEGISLATIVE CENTERS BUT YOU THEN GET THE LAW FIRMS THE LOBBYISTS AND ALL THE INDUSTRIES THAT THEN FIT IN WITH THEM JUST AS JOE KENNEDY WAS ABLE TO MANIPULATE FINANCIAL MARKETS IN THE NINETEEN TWENTIES TONY COELHO WAS ABLE TO MANIPULATE THIS SYSTEM IN THE NINETEEN EIGHTIES HE UNDERSTOOD THESE POWER CENTERS AND HOW THEY THRIVED ON WHAT THE LATE CALIFORNIA POLITICIAN JESSE UNRUH CALLED THE MOTHER'S MILK OF POLITICS MONEY OR CAMPAIGN CONTRIBUTIONS HERE'S HOW TONY COELHO WOULD CHANGE THE SYSTEM HE KNOWS SO WELL LIMIT SERVICE ON CONGRESSIONAL COMMITTEES RATHER THAN IMPOSE TERM LIMITS FOR OFFICE A CONSTITUENCY HAS A RIGHT TO ELECT THEIR REPRESENTATIVE FOR AS LONG AS THEY WANT SAYS MR. COELHO WHO SERVED FOR ELEVEN YEARS AND HAS EXTOLLED THE VIRTUES OF CHANGE AND TURNOVER TO OLD CONGRESSIONAL FRIENDS BUT CONGRESSIONAL TERM LIMITS WOULD ELIMINATE MUCH OF THE KNOWLEDGE AND EXPERIENCE IN CONGRESS AND IN EFFECT TURN OVER POWER TO STAFF TO LOBBYISTS AND TO THE PRESS I DON'T THINK THAT'S WHERE THE POWER SHOULD BE THE UNDERLYING CASE FOR TERM LIMITS THAT CONGRESS IS DOMINATED BY LONG SERVING PROFESSIONAL POLITICIANS IS ERODING CHARLES COOK THE BEST INDEPENDENT ELECTION ANALYST NOW CALCULATES THAT IN THE NEXT CONGRESS AT LEAST TWO HUNDRED TWENTY FIVE TO TWO HUNDRED THIRTY REPRESENTATIVES OR OVER HALF THE HOUSE WILL HAVE BEEN ELECTED IN THE NINETEEN NINETIES INSTEAD MR. COELHO WANTS TERM LIMITS FOR COMMITTEE SERVICE SIX YEARS ON A SUBCOMMITTEE AND EIGHT YEARS ON A FULL COMMITTEE THEN LAWMAKERS WOULD HAVE TO ROTATE COMMITTEE ASSIGNMENTS WHEN INDIVIDUALS HAVE BEEN SUBCOMMITTEE OR COMMITTEE CHAIRMEN FOR TOO LONG THEY ARE NOT AS RECEPTIVE TO NEW IDEAS NEW CHALLENGES A SAM NUNN OR A DAN ROSTENKOWSKI HOWEVER WOULD RETAIN EXPERTISE FROM HIS PREVIOUS COMMITTEES QUOTE YOU PROBABLY WOULDN'T SEE AS MANY PEOPLE STAYING AS LONG BUT YOU STILL WOULD RETAIN A LOT OF THE KNOWLEDGE AND EXPERIENCE AND IT WOULD MAKE FOR MUCH MORE INTERESTING FLOOR DELIBERATIONS QUOTE MR. COELHO NOTES AUTOMATICALLY REORGANIZE CONGRESS EVERY DECADE AN OFT REPEATED MYTH IS THAT CONGRESSIONAL STAFFS AND SUBCOMMITTEES HAVE BEEN MUSHROOMING YET AS LAST YEAR'S EXCELLENT STUDY OF CONGRESS BY THE AMERICAN ENTERPRISE INSTITUTE AND BROOKINGS INSTITUTION REPORTED CONGRESSIONAL STAFFING HAS BEEN LEVEL FOR MORE THAN A DECADE AND THE NUMBER OF SUBCOMMITTEES IS DECLINING SUBCOMMITTEES DID PROLIFERATE AFTER WORLD WAR TWO REACHING A PEAK IN BOTH BODIES IN NINETEEN SEVENTY FIVE ONE HUNDRED FIFTY ONE IN THE HOUSE AND ONE HUNDRED FORTY IN THE SENATE BUT THEY HAVE DROPPED TODAY TO ONE HUNDRED FIFTEEN IN THE HOUSE AND EIGHTY SIX IN THE SENATE TONY COELHO SAYS THE SYSTEM STILL IS OUT OF KILTER STAFF AND SUBCOMMITTEES COULD BE CUT SOME MORE HE BELIEVES AND THERE'S AN OBVIOUS NEED FOR REARRANGING LEGISLATIVE RESPONSIBILITIES HERE MR. COELHO SHIES AWAY FROM SPECIFICS BUT SOME ARE APPARENT PANELS LIKE THE HOUSE ADMINISTRATION COMMITTEE AND THE SENATE SELECT COMMITTEES OUGHT TO BE ELIMINATED AND IT'S CLEAR THAT THE HOUSE WAYS AND MEANS AND SENATE FINANCE COMMITTEES HAVE TOO WIDE A JURISDICTION MOST CONGRESSIONAL CHANGES ARE DONE ON AN AD HOC BASIS SO THE FORMER HOUSE DEMOCRATIC WHIP WANTS AN AUTOMATIC REORGANIZATION AT LEAST EVERY TEN YEARS DIRECTED BY THE DEMOCRATIC AND REPUBLICAN LEADERS OF BOTH HOUSES COMBINED WITH TERM LIMITS FOR COMMITTEES THAT SHOULD HELP REDUCE BOTH THE SPECIAL INTEREST DRIVEN PARALYSIS AND THE PREVAILING LET'S DO IT THIS WAY BECAUSE THAT'S THE WAY WE'VE ALWAYS DONE IT SYNDROME MR. COELHO WORRIES LESS ABOUT TOO MUCH POWER SHIFTING TO CONGRESS NOTING THAT THESE EXECUTIVE LEGISLATIVE BALANCE OF POWER EQUATIONS INVARIABLY GO IN CYCLES HE DOES HOWEVER SUPPORT A MODIFIED LINE ITEM VETO FOR TAXES AS WELL AS SPENDING TO GIVE THE PRESIDENT MORE LEVERAGE ON BUDGETARY MATTERS REFORM CAMPAIGN FINANCING SO LEGISLATORS DEAL MORE WITH SUBSTANTIVE ISSUES AND LESS WITH RAISING CAMPAIGN MONEY IN AMERICAN POLITICS THERE HASN'T BEEN A BETTER POLITICAL FUND RAISER THAN TONY COELHO NOBODY KNOWS BETTER WHAT A DEBILITATING PROCESS IT IS THE PROBLEM IS NOT SO MUCH THAT CONTRIBUTORS THINK THEY OWN YOU OR INDUSTRIES CONTROL YOU ALTHOUGH THERE ARE EXAMPLES OF THAT MY CONCERN IS THE AMOUNT OF TIME IT TAKES FOR INDIVIDUALS TO RAISE MONEY I HAD A VERY CLOSE FRIEND IN THE SENATE WHO TOLD ME THAT IN THE TWO YEARS PRIOR TO RE ELECTION HE SPENDS AS MUCH AS SEVENTY PERCENT OF HIS TIME RAISING MONEY THAT MEANS HE ONLY SPENDS THIRTY PERCENT OF HIS TIME ON THE COUNTRY'S PROBLEMS THERE HAS BEEN A REAL ARMS RACE IN SPENDING ON CONGRESSIONAL CAMPAIGNS SOARING FIVEFOLD FROM NINETY NINE MILLION DOLLARS IN NINETEEN SEVENTY SIX TO FIVE HUNDRED TWENTY SIX POINT SIX MILLION DOLLARS LAST TIME MR. COELHO WOULD PLACE A STRICT CAP ON OVERALL SPENDING HIGH ENOUGH NOT TO DISADVANTAGE CHALLENGERS REQUIRE FULL DISCLOSURE OF ALL CONTRIBUTIONS AND PROVIDE PARTIAL PUBLIC FINANCING HE WOULD REQUIRE THAT A SIGNIFICANT AMOUNT OF A CANDIDATE'S OVERALL MONEY COME FROM THAT PARTICULAR DISTRICT OR STATE TOTAL PUBLIC FINANCING AS IN PRESIDENTIAL GENERAL ELECTIONS IS DESIRABLE BUT MR. COELHO DOUBTS THERE'S SUFFICIENT PUBLIC SUPPORT BUT HE SUGGESTS MORE THAN A FEW MEMBERS USE PUBLIC OPPOSITION AS AN EXCUSE TO OPPOSE EVEN PARTIAL PUBLIC FINANCING THEY DON'T WANT A COMPETITIVE RACE AND PUBLIC FINANCING WOULD CREATE MORE COMPETITIVE RACES AND THE MAN WHO ASSEMBLED THE DEMOCRAT'S MOST EFFECTIVE FUND RAISING MACHINE IN THE NINETEEN EIGHTIES KNOWS HE HELPED CREATE A MONSTER CAMPAIGNS HAVE NOW BECOME A FULL TIME BUSINESS YOU SET UP THE MECHANISM TO HAVE FULL TIME POLLSTERS FULL TIME MEDIA PEOPLE AND OTHERS THEY ARE ENGAGED YEAR ROUND THAT MEANS YOU RAISE ENOUGH MONEY TO PAY THEM ALL YEAR THE CYCLE JUST GOES ON AND ON ALSO IT'S LIKE HEALTH CARE IN THAT EVERY NEW FANDANGLE THING THAT COMES ALONG POLITICALLY YOUR CONSULTANT WANTS TO TRY YOU DON'T NEED IT BUT YOU'RE AFRAID THE OTHER SIDE WILL HAVE IT AND IT JUST KEEPS DRIVING COSTS UP YOUR JANUARY ELEVENTH MARKETPLACE ARTICLE ON U. S. CONSUMER OVERUSE OF NONPRESCRIPTION MEDICINES FAILED EVEN TO ACKNOWLEDGE THE ESSENTIAL POINT THAT NONPRESCRIPTION MEDICINES TODAY ARE SERIOUS SAFE AND RELIABLE CONTRIBUTORS TO HEALTH CARE IN COST EFFECTIVENESS CONVENIENCE AND IN OFFERING EVER WIDENING OPPORTUNITIES FOR AMERICANS TO SEEK RELIEF FROM EVERYDAY ILLNESSES AND INJURIES YOU QUOTED A HALF DOZEN OR SO INDIVIDUALS GIVING ANECDOTAL EVIDENCE THAT AMERICANS OVERUSE NONPRESCRIPTION MEDICINES BUT YOU FAILED TO MENTION EVEN ONE OF THE NINE U. S. STUDIES ALL PUBLISHED AND ALL AVAILABLE TO THE MOST CASUAL RESEARCHER WHICH SINCE NINETEEN EIGHTY FOUR HAVE REPEATEDLY DOCUMENTED THAT AMERICANS ARE CAUTIOUS AND RESPONSIBLE IN USING SELF MEDICATIONS PREFER TO TOUGH OUT EVERYDAY ACHES AND PAINS WHEN THEY CAN AND RESORT TO NONPRESCRIPTION MEDICAL RELIEF ONLY ABOUT ONE THIRD OF THE TIME THEY REPORT A PROBLEM HELLER STUDIES IN NINETEEN EIGHTY THREE AND AGAIN IN NINETEEN NINETY TWO FOR EXAMPLE SHOW BEYOND REASONABLE ARGUMENT THAT AMERICAN CONSUMERS ARE KNOWLEDGEABLE ABOUT THE MEDICINES THEY USE IN THE HOME AND GENERALLY UNDERSTAND THE BENEFITS AS WELL AS THE LIMITATIONS OF SELF MEDICATION THE STORY IS A DISSERVICE TO THOUSANDS OF YOUR READERS WHO BECAUSE OF COST CONSIDERATIONS PERSONAL CONVENIENCE AND A SENSE OF SELF EMPOWERMENT CONTINUE TO TURN TO DOING FOR THEMSELVES WHEN THEY CAN IN THEIR OWN HEALTH CARE AND THE FACTS SHOW THEY GENERALLY DO A GOOD JOB WEARING BAGGY DENIM GARB DARK SHADES AND A BLUE AND WHITE BANDANA AROUND HER HEAD LICHELLE QUOTE BOSS QUOTE LAWS SAUNTERS ARROGANTLY BEFORE A CROWD OF ARM WAVING FANS AT THE D. C. ARMORY IN A VEXATIOUS VOICE SHE SAYS I DON'T GIVE A F. ABOUT NONE OF YA'LL THE AUDIENCE ROARS ADORINGLY AS ONE OF THE FIRST FEMALE GANGSTER RAPPERS TO CLIMB THE CHARTS THE TWENTY FOUR YEAR OLD MS. LAWS IS BECOMING AS WELL KNOWN FOR HER PERSONA AS FOR HER MUSIC SHE BOASTS OF A PERSONAL ARSENAL OF AUTOMATIC WEAPONS AND OF HANGING WITH STREET GANGS SHE DRINKS MALT LIQUOR FROM FORTY OUNCE BOTTLES CURSES INCESSANTLY AND MUSES ALOUD ABOUT KILLING SOMEONE ANYONE SHE CERTAINLY DOESN'T RESEMBLE THE LITTLE GIRL WHO LILLIE AND JOE LAWS RAISED IN A MIDDLE CLASS NEIGHBORHOOD OF DETROIT THE YOUNGEST OF THREE DAUGHTERS LICHELLE ATTENDED PRIVATE SCHOOL FROM FIRST GRADE THROUGH HIGH SCHOOL FOR FIFTEEN YEARS SHE WAS A STUDENT OF BALLET MODERN DANCE AND THE PIANO SHE ATTENDED CHURCH AND WENT TO COLLEGE SHE MAJORED IN BUSINESS AND BECAME A FRATERNITY SWEETHEART HOW DID THIS GIRL NEXT DOOR BECOME A MENACE TO SOCIETY RAPPER I COME FROM A GOOD HOME BUT I'VE SEEN BOTH SIDES SHE SAYS I'VE SLEPT ON A BENCH AND HUSTLED IN THE GHETTO TOO MS. LAWS NOW WORKS IN A GENRE GANGSTER RAP IN WHICH PROJECTING A TOUGH IMAGE IS AS IMPORTANT AS HER SOUND THE SAD TRUTH IS THE HARDER THE RAPPER'S IMAGE THE MORE MUSIC THEY SELL SAYS DAVID DICKERSON A SILVER SPRING MARYLAND RAP MUSIC PRODUCER IT WASN'T UNTIL MS. LAWS ACQUIRED QUOTE THE FLAVOR QUOTE ENTERTAINMENT INDUSTRY JARGON DESCRIBING THE STYLE FOUND AMONG YOUTH FROM AMERICA'S MEAN STREETS THAT SHE WAS ABLE TO LAND A RECORDING CONTRACT I TRIED THE STRAIGHT UP NICE GIRL APPROACH SHE SAYS AND IT DIDN'T WORK SO SHE NOW RAPS SONGS SUCH AS A BLIND DATE WITH BOSS IN WHICH SHE ACTS OUT THE SEDUCTION AND MURDER OF HER DATE A MACHO MISOGYNIST WHEN MS. LAWS WAS GROWING UP HER PARENTS WOULD TAKE THEIR THREE DAUGHTERS OUT TO DINNERS MOVIES AND PLAYS HER FATHER A RETIRED AUTO WORKER RECALLS DRIVING THROUGH THE CITY'S DEPRESSED AREAS AND TELLING HIS GIRLS THIS IS WHY I WANT YOU TO GO TO SCHOOL SO YOU DON'T HAVE TO LIVE LIKE THIS AT SAINT MARY OF REDFORD SCHOOL WHERE MS. LAWS ATTENDED GRADES ONE THROUGH TWELVE SHE WAS KNOWN AS A QUIET STUDENT ONE OF HER COUNSELORS SISTER LORETTA SCHROEDER RECALLS HER AS A VERY PRETTY GIRL AND A LITTLE ON THE SHY SIDE BUT FOLLOWING THE LEAD OF HER MORE OUTGOING OLDER SISTER KARYL LICHELLE EVENTUALLY BROKE FROM HER SHELL AND BECAME A CHEERLEADER AND MEMBER OF THE HOMECOMING QUEEN'S COURT AFTER FINISHING HIGH SCHOOL IN NINETEEN EIGHTY SEVEN MS. LAWS ENROLLED AT OAKLAND UNIVERSITY IN ROCHESTER MICHIGAN AROUND THIS TIME SHE BEGAN ADMIRING THE FEMALE RAP GROUPS THAT WERE JUST BECOMING POPULAR SHE STARTED WRITING MATERIAL OF HER OWN AND TRYING IT OUT ON FELLOW STUDENTS SHE WOULD STAND OUTSIDE THE DORM AND RAP RECALLS CLASSMATE KEITH ARNOLD QUOTE IT WAS OBVIOUS THAT SHE HAD A PASSION FOR IT QUOTE EVENTUALLY MS. LAWS AND CLASSMATE IRENE MOORE FORMED A GROUP AND PERFORMED AT CAMPUS FUNCTIONS LIKE OTHER FEMALE RAPPERS THEN THE ACT WAS FREE OF PROFANITY AND VIOLENT LYRICS WE WERE WEARING LITTLE CUTE MATCHING OUTFITS ON STAGE MS. LAWS RECALLS IN THE MIDDLE OF HER JUNIOR YEAR MS. LAWS DECIDED TO DROP OUT TO CONCENTRATE ON A CAREER AS A RAPPER SHE WORKED DAYS IN COMPUTER DATA ENTRY AND PERFORMED IN DETROIT RAP CLUBS AT NIGHT BY EARLY NINETEEN NINETY MS. LAWS AND MS. MOORE HAD MOVED TO LOS ANGELES IN HOPES OF GETTING DISCOVERED THEY SOON LEARNED THAT THE INDUSTRY WAS MORE FASCINATED WITH A GROUP OF HARDCORE GANGSTA RAPPERS LIKE ICE T. AND N. W. A. THAN WITH THEIR SOFTER STYLE PRODUCERS WHO TURNED THEM DOWN WERE TELLING US THAT WE DIDN'T CURSE ENOUGH SAYS MS. LAWS THE WOMEN DECIDED TO START USING PROFANITY IN THEIR RAPS WITH LITTLE MONEY MS. LAWS SAYS THEY STAYED FIRST IN ROACH INFESTED HOTELS AND WHEN THEIR MONEY RAN OUT ON BENCHES OR AT PEOPLES' HOMES JEFF FORSTON A RAPPER AND PRODUCER SAYS HE PUT THEM UP FOR A FEW DAYS THE WOMEN WERE LIVING REAL FOUL HE RECALLS MS. LAWS BEGAN DRESSING DOWN DONNING BAGGY PANTS BIG WORK SHIRTS AND SKULL CAPS DUDS FAVORED BY GANGSTER RAPPERS IN PROMOTING HER CAREER AS A GANGSTER RAPPER MS. LAWS HAS MADE MUCH OF HER EXPERIENCES OF LIVING IN THE STREETS SHE SAYS SHE SOLD DRUGS AND HUNG WITH THE NOTORIOUS STREET GANG THE BLOODS SHE ALSO SAYS SHE SPENT SOME TIME IN JAIL SHE DIDN'T AND THE STORIES ABOUT HER LIFE ON THE STREETS CAN'T BE VERIFIED HER MOTHER ALSO INSISTS THAT SHE SENT HER DAUGHTER MONEY QUOTE LICHELLE COULD HAVE STAYED AT THE EMBASSY SUITES WITH ALL OF THE MONEY WE WERE SENDING HER QUOTE SHE SAYS IN ANY CASE HER MUSIC BEGAN TO REFLECT THE DESPERATION OF STREET LIFE SHE BEGAN WRITING EXPLICITLY VIOLENT AND SEXUAL RAP LYRICS THEN A YEAR AFTER ARRIVING IN LOS ANGELES MS. LAWS AND MS. MOORE WALKED INTO THE OFFICES OF TWO PRODUCERS TRACY KENDRICK AND COURTNEY BRANCH THEY INSISTED THAT SOMEONE LISTEN TO THEM RAP OR THEY WOULDN'T LEAVE RECALLS MR. KENDRICK HE AND MR. BRANCH LISTENED AND IMMEDIATELY BEGAN WORKING WITH THEM HELPING THEM POLISH THEIR MATERIAL AND GIVING THEM A PLACE TO LIVE EVERYONE ELSE OUT HERE HAD BEEN TURNING THEM DOWN SAYS MR. BRANCH I HEARD LICHELLE RAP AND I SAID THIS IS THE GREATEST RAPPER ON EARTH ABOUT SIX MONTHS LATER WITH HER NEW MATERIAL DRESSED DOWN IMAGE AND THE GUIDANCE OF MESSRS BRANCH AND KENDRICK MS. LAWS SIGNED WITH DEF JAM WEST RECORDS A UNIT OF SONY CORPORATION'S SONY MUSIC ENTERTAINMENT INCORPORATED NOW GROSS SALES FROM MS. LAWS'S FIRST ALBUM BORN GANGSTAZ HAVE REACHED SEVEN HUNDRED THIRTY THREE THOUSAND DOLLARS SINCE ITS RELEASE LAST SPRING ACCORDING TO DEF JAM SHE HAS JUST RELEASED A VIDEO AND IS WORKING ON A SECOND ALBUM AND OTHER PROJECTS ON THE COVER OF BORN GANGSTAZ MS. LAWS AND MS. MOORE STRIKE VARIOUS POSES CLUTCHING AUTOMATIC WEAPONS BUT MS. MOORE APPEARS ON THE RECORDING ONLY AS A GUEST MS. MOORE IS NOW COMPLETING HER OWN ALBUM FOR DEF JAM AND THE TWO WOMEN NO LONGER PERFORM TOGETHER FOR MS. LAWS'S PARENTS ACCEPTING THEIR DAUGHTER'S NEW FOUND FAME HASN'T BEEN EASY QUOTE AT FIRST WE WERE COMPLETELY DISGUSTED WITH HER QUOTE SAYS HER MOTHER WHEN STUDENTS AT THE JUNIOR HIGH SCHOOL WHERE SHE TAUGHT WOULD COME UP TO ME AND SAY I HEAR BOSS IS YOUR DAUGHTER I'D SAY NO I DON'T KNOW A THING ABOUT HER MRS. LAWS RETIRED FROM TEACHING LAST JUNE MEMBERS OF HER CHURCH TALK ABOUT HER DAUGHTER TOO NOT TOO MANY OF OUR ADULT FRIENDS AGREE WITH WHAT SHE'S DOING SAYS MRS. LAWS MS. LAWS MAKES NO APOLOGIES FOR HER MUSIC A LINE FROM ONE SONG THEY WONDER WHY THEY LABEL ME INSANE BECAUSE I LOADED THE CLIP AND TOOK THE NINE TO THE COPPER'S BRAIN EVEN AMONG THOSE WHO APPRECIATE GANGSTER RAP THERE ARE CRITICS WHO SAY THAT MS. LAWS STILL ISN'T THE REAL THING ONE POPULAR PUBLICIST SAYS THAT AFTER MEETING HER RECENTLY HE REALIZED SHE'S NOT REALLY A GANGSTER SHE'S AS SWEET AS PIE BUT WHEN SHE RAPS HE ADDS SHE'S VERY CONVINCING MS. LAWS ANSWERS SUCH CRITICISM THIS WAY QUOTE I'M BOTH A GANGSTER AND A SMART BUSINESS PERSON I KNOW WHAT I'M DOING AND I KNOW HOW TO MAKE IT IN THIS BUSINESS THE MEAN SPIRITED TITLE YOU GAVE TO MY RECENT JANUARY TWENTY SIXTH EDITORIAL PAGE ARTICLE ON CRIME POLICY QUOTE LET 'EM ROT QUOTE DISGUSTED ME DISTORTED MY MESSAGE AND DISHONORED YOU AS I WROTE THE AMERICAN PEOPLE ARE MORALLY AND INTELLECTUALLY RIGHT ABOUT THE NEED TO INCARCERATE CHRONIC CRIMINALS ADULT AND JUVENILE MILLIONS OF SERIOUS CRIMES ARE COMMITTED EACH YEAR BY CRIMINALS WHO SHOULD HAVE BEEN KEPT BEHIND BARS PRESIDENT CLINTON IS RIGHT TO ENDORSE LIFE TERMS FOR THRICE CONVICTED VIOLENT FELONS NOW LET HIM KEEP FAITH WITH THE PEOPLE ON CRIME AND OTHER ISSUES MY POPULIST PLEA TO LOCK UP VIOLENT AND REPEAT CRIMINALS IS ONE THING BUT YOUR REACTIONARY ROAR TO LET 'EM ROT IS QUITE ANOTHER YOUR TITLE IMPLIES A LACK OF CONCERN ABOUT CONDITIONS OF CONFINEMENT AND AN IRRELIGIOUS VENGEFULNESS TOWARD CRIMINALS YOUNG AND OLD THAT I LIKE MOST AMERICANS DO NOT SHARE EVERY SURVEY SHOWS THAT MOST AMERICANS WANT PRISONS TO BE NEITHER COUNTRY CLUBS NOR HELLHOLES PRISONERS DESERVE DECENT LIVING CONDITIONS AND SHOULD BE PROVIDED WITH EVERY OPPORTUNITY DRUG TREATMENT EDUCATION VOCATIONAL TRAINING FOR SELF BETTERMENT IN GOVERNING PRISONS NINETEEN EIGHTY SEVEN COURTS AND CORRECTIONS NINETEEN NINETY AND NO ESCAPE NINETEEN NINETY ONE I EXPLORED WAYS OF MAKING OUR COUNTRY'S PENAL INSTITUTIONS INCLUDING HIGH SECURITY PRISONS FOR LONG TERM PRISONERS AND LIFERS MORE SAFE HUMANE AND COST EFFECTIVE LIKEWISE MOST AMERICANS DO NOT WANT TO THROW THE KEY AWAY ON YOUTHFUL OFFENDERS STUDIES BY MYSELF AND OTHERS SHOW THAT WHILE SIXTIES STYLE PREVENTION PROGRAMS DON'T WORK MANY GOVERNMENT PROGRAMS CAN AND DO MAKE A POSITIVE DIFFERENCE IN THE LIVES OF JUVENILES WHO HAVE BEEN IN TROUBLE WITH THE LAW FOR THEM THE WATCHWORD IS REHABILITATION NOT ROT YOUR SELF TITILLATING TITLE REMINDED ME THAT WHEN IT COMES TO CRIME POLICY LIBERAL ELITES HAVE TOO LONG DENIED THE PUBLIC'S LEGITIMATE DEMAND FOR PROTECTION AND JUSTICE BUT CONSERVATIVE ELITES HAVE TOO OFTEN DISHONORED ITS JUDEO CHRISTIAN CAPACITY FOR COMPASSION AND MERCY IN REGARD TO DOROTHY RABINOWITZ JANUARY TWENTIETH EDITORIAL PAGE ESSAY QUOTE INMAN'S FALSE CRY OF MCCARTHYISM QUOTE IN PURPORTEDLY CLARIFYING THE DEFINITION OF THE WORD QUOTE MCCARTHYISM QUOTE SO FLAGRANTLY OVERUSED IN THE NINETEEN NINETIES MS. RABINOWITZ DOESN'T COMPLETE THE ORIGINAL DEFINITION OF THE WORD WHEN IT WAS NEWLY MINTED IN NINETEEN FIFTY SEVERAL VICTIMS OF THE WISCONSIN WILD MAN'S OUTRAGEOUS LIES NOTABLY SCHOLAR OWEN LATTIMORE CHALLENGED THE SENATOR TO REPEAT HIS CHARGES OFF THE SENATE FLOOR WHERE HE COULD BE SUED FOR SLANDER THE GUTLESS BULLY ALWAYS DUCKED THESE CHALLENGES MCCARTHYISM THUS IMPLIES COWARDICE AS WELL AS RECKLESS MENDACITY FORTUNATELY NO OTHER CONGRESSMAN BEFORE OR SINCE HAS EXPLOITED CONGRESSIONAL IMMUNITY LIKE THE LATE UNLAMENTED SENATOR MCCARTHY PAXAR CORPORATION SAID IT EXPECTS TO REPORT LOWER FOURTH QUARTER SALES AND PROFIT BECAUSE OF WEAKNESS IN THE APPAREL INDUSTRY ITS MAIN CUSTOMER PAXAR A PEARL RIVER N. Y. COMPANY THAT MAKES IDENTIFICATION SYSTEMS AND PRODUCTS INCLUDING BAR CODING AND IN PLANT LABELING SYSTEMS SAID FOURTH QUARTER NET INCOME IS EXPECTED TO BE ABOUT ONE POINT EIGHT MILLION DOLLARS OR THIRTEEN CENTS A SHARE COMPARED WITH YEAR EARLIER NET OF TWO POINT FOUR MILLION DOLLARS OR SEVENTEEN CENTS A SHARE SALES ARE EXPECTED TO BE THIRTY THREE POINT FIVE MILLION DOLLARS COMPARED WITH THE YEAR EARLIER'S THIRTY FOUR POINT FOUR MILLION DOLLARS IN NASDAQ STOCK MARKET TRADING PAXAR STOCK ROSE THIRTY SEVEN POINT FIVE CENTS OR TWO POINT SEVEN PERCENT TO CLOSE AT FOURTEEN POINT ONE TWO FIVE DOLLARS IT'S FEEDING TIME AT THE IOWA TROUGH AGAIN THE ISSUE IS PUBLIC SUBSIDY FOR CORPORATE DEVELOPMENT AND THIS TIME BIG LABOR HAS IT RIGHT AND THE PRO BUSINESS REPUBLICAN GOVERNOR HAS IT WRONG IOWA GOVERNOR TERRY BRANSTAD WANTS TO OFFER ABOUT SEVENTY THREE MILLION DOLLARS IN SUBSIDIES TO LURE IPSCO A CANADIAN STEELMAKER TO LOCATE A PLANT NEAR THE MISSISSIPPI RIVER TOWN OF MONTPELIER WITH THREE HUNDRED JOBS INITIALLY PLEDGED THAT WOULD AMOUNT TO ABOUT TWO HUNDRED FORTY THREE THOUSAND DOLLARS IN SPECIAL TAX BREAKS AND GRANTS FOR EACH OF THE WORKERS THIS WOULDN'T SET THE RECORD KENTUCKY HOLDS THAT AT THREE HUNDRED FIFTY THOUSAND DOLLARS A POP ALSO FOR A MINIMILL RUN BY ANOTHER CANADIAN STEELMAKER BUT IOWA IS NO PIKER IN THE STATES' BIDDING WAR FOR DESIRED BUSINESSES AND IPSCO THINKS IT CAN GET ITS PRICE FROM SOMEONE SO IT'S TOLD THE IOWA LEGISLATURE TO GET A MOVE ON APPROVING THE DEAL THE IOWA FEDERATION OF LABOR SAYS STOP PRESIDENT JAMES WENGERT OBJECTS TO FAVORING SELECT COMPANIES WITH QUOTE CORPORATE WELFARE QUOTE AT THE EXPENSE OF OTHER POTENTIAL USES FOR THE TAX MONEY ONE SUCH USE WE'D SUGGEST COULD BE GENERAL TAX RELIEF SUCH AS A REDUCTION IN THE PROPERTY LEVY ON EXPENSIVE MACHINERY THAT VEXES THE IPSCO FOLKS AND NO DOUBT MANY OTHER BUSINESSES MR. WENGERT SAYS LABOR IS OPPOSED EVEN THOUGH HE EXPECTS AN IPSCO FACILITY TO BE UNIONIZED AS ITS CANADIAN PLANTS ARE AN EXISTING UNION STEELMAKER IN THE AREA CONTENDS IT COULD BE PLACED AT A DISADVANTAGE INDEED AS TOM VILSACK A DOWNRIVER DEMOCRATIC STATE SENATOR OBSERVES YOU'RE ACTUALLY PICKING AND CHOOSING BUSINESSES SEVERAL DEMOCRATS IN IOWA AT LEAST DON'T THINK THAT'S A PROPER ROLE FOR GOVERNMENT THEY OUGHT TO SEND THAT MESSAGE TO THE WHITE HOUSE THE HANDOUT GAME WHETHER IT INVOLVES STEEL MILLS OR BASEBALL TEAMS OR HIGH TECH R. AND D. STOPS WHEN POLITICIANS FATHOM OR ARE MADE TO LEARN THAT IT DOESN'T PAY OFF IN MOST CASES AND IT ISN'T THEIR ROLE IN LIFE TO BESTOW THESE FAVORS ANYWAY THEY OUGHT TO ATTEND TO COMPETITIVENESS BY MAXIMIZING THE APPEAL OF THEIR JURISDICTION TO EVERY KIND OF ENTERPRISE NOT JUST THOSE WITH A BIG SNOUT MARC RICH THE SWISS BASED FINANCIER WHO HAS MADE HUNDREDS OF MILLIONS OF DOLLARS IN DEALS AROUND THE GLOBE DISCOVERED NOT LONG AGO THE PERILS OF DOING BUSINESS IN SPAIN MR. RICH AND A GROUP OF SOPHISTICATED INVESTORS BOUGHT A BEACH SIDE VACATION DEVELOPMENT ON THE ISLAND OF MAJORCA FROM TWO SUBSIDIARIES OF BANCO ESPANOL DE CREDITO IN NINETEEN EIGHTY EIGHT WITH SPAIN'S ECONOMY BOOMING AND TOURISTS FLOODING THE ISLAND THE DEAL SEEMED A SURE THING BUT THE INVESTORS LATER LEARNED THAT THE COMPLEX ONE THOUSAND FOUR HUNDRED SEVENTY APARTMENTS IN NINETEEN BUILDINGS WAS BUILT WITHOUT PROPER ZONING PERMITS AND THEY COULDN'T LEGALLY DO MAINTENANCE WORK AND WOULDN'T BE ABLE TO SELL THE PROPERTY TO CASH IN ON THEIR INVESTMENT MR. RICH AND HIS PARTNERS SUED THE BANK KNOWN AS BANESTO AND WON FIVE POINT SEVEN BILLION PESETAS FORTY POINT FOUR MILLION DOLLARS IN AN ARBITRATION RULING IN DECEMBER WHETHER THEY WILL EVER RECOVER ANY MONEY IS UNCLEAR THE CLAIM IS A DROP IN THE OCEAN OF LOSSES RECENTLY UNCOVERED AT THE SPANISH BANK THOUGH BANESTO SUPPOSEDLY WAS ON THE MEND WITH THE HELP OF J. P. MORGAN AND COMPANY OF NEW YORK REGULATORS EFFECTIVELY TOOK OVER BANESTO AFTER FINDING A FINANCIAL SHORTFALL NOW ESTIMATED AT FOUR POINT THREE BILLION DOLLARS EMBARRASSED SPANISH OFFICIALS ARE DISCOVERING THAT THE MAJORCA DEAL WASN'T AN ABERRATION INSTEAD IT IS PART OF AN EMERGING COMPLEX PICTURE OF INEFFICIENCY GREED AND CORRUPTION AT ONE OF SPAIN'S LARGEST AND MOST PRESTIGIOUS BANKS QUOTE WHEN WE GOT HERE WE WERE AMAZED QUOTE SAYS ONE OF THE OFFICIALS BROUGHT IN BY THE BANK OF SPAIN THE CENTRAL BANK AT YEAR END TO RUN BANESTO THE BANK'S ORGANIZATION WAS TWENTY YEARS OUT OF DATE ITS CONCEPT OF RISK WAS COMPLETELY DIFFERENT FROM OURS MOST SURPRISING OF ALL PEOPLE DIDN'T SEEM TO KNOW WHOM THEY WERE WORKING FOR THE BOARD OF THE BANK THE BANK ITSELF OR JUST A FEW PEOPLE WITHIN THE BANK INDEED AS INVESTIGATORS TRY TO FIND OUT WHAT WENT WRONG AT BANESTO SOME SPANIARDS WONDER WHETHER THE BROADER QUESTION IS WHAT HAS GONE WRONG WITH SPAIN A WAVE OF OPTIMISM SET OFF BY THE DEATH OF DICTATOR FRANCISCO FRANCO IN NINETEEN SEVENTY FIVE AND SPAIN'S SUBSEQUENT ADMITTANCE INTO THE NORTH ATLANTIC TREATY ORGANIZATION IN NINETEEN EIGHTY TWO AND THE EUROPEAN COMMUNITY IN NINETEEN EIGHTY SIX HAS LARGELY SUBSIDED DESPITE HUGE INFUSIONS OF E. C. AID SPAIN STILL GENERALLY LAGS BEHIND MOST OF ITS NEIGHBORS TO THE NORTH UNEMPLOYMENT IS A STAGGERING TWENTY THREE PERCENT THE GAP BETWEEN RICH AND POOR IS WIDENING NATIONAL PRIDE IS DISSOLVING INTO SELF DOUBT BAD LOANS AND BAD INVESTMENTS IN NONBANKING BUSINESSES AREN'T ALL THAT BROUGHT DOWN BANESTO AND ITS FORMER CHAIRMAN MARIO CONDE A FORTY FIVE YEAR OLD FOND OF EXTRAVAGANT LIVING SPAIN'S TRADITIONALLY COZY RELATIONSHIPS BETWEEN FINANCIERS AND POLITICIANS WEAK BANK AND STOCK MARKET REGULATION AND OUTSIDE DIRECTORS' FAILURE TO KEEP TABS ON EXECUTIVES CREATED THE CONDITIONS FOR SUCH A SCANDAL NEITHER MR. CONDE NOR HIS LAWYERS RESPONDED TO REQUESTS FOR COMMENT SPANIARDS WORRY THAT BANESTO ILLUSTRATES THE DARK SIDE OF HOW BUSINESS IS DONE IN SPAIN THERE'S A LOT OF PESSIMISM SAYS RAMON REYES A CONSULTANT AT EGON ZEHNDER INTERNATIONAL HERE PEOPLE WERE BEING DELUDED BY A MIRAGE OF GROWTH NOW THEY'RE BEGINNING TO REALIZE THEY WERE TAKEN FOR A RIDE ALTHOUGH BANESTO IS STILL OPERATING AND ITS STOCK RESUMED TRADING THIS WEEK ITS RECENT HISTORY OBSERVES LUIS MIRANDA LOPEZ MANAGING DIRECTOR OF A. P. V. BAKER IBERICA S. A. A MAKER OF FOOD PROCESSING MACHINERY QUOTE SHOWS HOW DIVORCED FINANCE AND THE PRODUCTIVE ECONOMY HAVE BECOME INDUSTRY IS FIGHTING TO SURVIVE IN A CRISIS THAT DOESN'T SEEM TO HAVE TOUCHED BOTTOM WHILE BANKS LIKE BANESTO MAKE MONEY THROUGH ACCOUNTING TRICKS THE BANESTO MESS IS ONLY ONE OF A SERIES OF FINANCIAL SCANDALS GERMANY'S VOLKSWAGEN A. G. RECENTLY ALLEGED THAT ITS SEAT CAR MAKING SUBSIDIARY IN SPAIN DELIBERATELY UNDERREPORTED LOSSES TO ITS PARENT INSTEAD OF EIGHTY FIVE MILLION DOLLARS SEAT ACTUALLY HAD A ONE POINT THREE BILLION DOLLAR LOSS LAST YEAR IN ANOTHER CASE MORE THAN TWENTY THOUSAND SPANISH UNION MEMBERS HAVE SEEN THEIR SAVINGS DISAPPEAR IN A FIVE HUNDRED MILLION DOLLAR REAL ESTATE SCANDAL AND IN THE BIGGEST CASE OF ALL DISCLOSED LAST YEAR THE KUWAIT INVESTMENT OFFICE LOST SOME FIVE BILLION DOLLARS ON INVESTMENTS IN VENTURES ORGANIZED BY ITS SPANISH REPRESENTATIVE JAVIER DE LA ROSA ALL FOUR SCANDALS INVOLVED LAX FINANCIAL AND MANAGEMENT CONTROLS THOUGH NO ONE EXPECTS ANOTHER BANK COLLAPSE ON QUITE THE SCALE OF BANESTO'S SOME FEAR THAT IN SPAIN'S CURRENT POLITICAL AND BUSINESS ENVIRONMENT LAX OVERSIGHT OF BUSINESS COULD CAUSE MORE TROUBLE SOMETHING LIKE BANESTO COULD EASILY HAPPEN AGAIN WARNS FEDERICO JIMENEZ LOSANTOS A WRITER WHO HAS EXTENSIVELY CRITICIZED MR. CONDE LAX ATTITUDES ARE A PROBLEM ALL ACROSS SPANISH SOCIETY COMPANIES ROUTINELY PAY EMPLOYEES PART OF THEIR EARNINGS IN CASH TO AVOID STEEP SOCIAL SECURITY TAXES SAYS A PARTNER IN AN ENGINEERING FIRM TAX EVASION IS COMMON WHEN BANCO POPULAR ESPANOL FIRED A BRANCH MANAGER LAST YEAR FOR HELPING A CLIENT EVADE TAXES IT GOT AN AVALANCHE OF LETTERS DEFENDING THE MANAGER HIGH TAXES AND RED TAPE SAYS LUIS SANTOS A REAL ESTATE DEVELOPER HAVE LED TO A STEADY EROSION OF MORAL VALUES AS PEOPLE BEGIN TO MOVE INTO GRAY AREAS WHERE THEY CLASSIFY THINGS AS ONLY MARGINALLY ILLEGAL THE RESULT SOME SAY IS A BREAKDOWN IN SOCIETAL NORMS THIS IS A COUNTRY WITHOUT A MORAL CONSCIENCE SAYS GERMAN SANCHEZ RUIPEREZ WHO OWNS GRUPO ANAYA S. A. SPAIN'S LEADING EDUCATIONAL PUBLISHER WE NEED TO GO THROUGH THE SAME CLEANSING PROCESS AS ITALY BITTERNESS OVER BANESTO'S DOWNFALL IS ALL THE SHARPER BECAUSE OF THE HOPES MR. CONDE RAISED WHEN HE CAME TO THE BANK IN DECEMBER NINETEEN EIGHTY SEVEN WITH HIS ELOQUENT RHETORIC THE YOUTHFUL FORMER LAWYER SEEMED TO EMBODY A WAVE OF REJUVENATION IN SPANISH SOCIETY TOGETHER WITH THE HEIR TO A FAMILY BUSINESS FOR WHICH HE ONCE WORKED MR. CONDE HAD JUST PULLED OFF A FINANCIAL COUP BY GAINING CONTROL OF ANTIBIOTICOS S. A. AND SELLING THE PHARMACEUTICALS COMPANY TO ITALY'S MONTEDISON COMPANY THEY INVESTED THEIR PROFITS IN BANESTO JUST AS IT BECAME THE TARGET OF SPAIN'S FIRST MAJOR HOSTILE TAKEOVER BID FROM A SMALLER RIVAL BANCO DE BILBAO PROMISING AN OVERHAUL MR. CONDE HELPED BANESTO FIGHT OFF THE OFFER LONG DOMINATED BY AN OLIGARCHY OF FAMILY SHAREHOLDERS AND WEAKENED BY A SERIES OF FINANCIAL CRISES BANESTO WAS RIPE FOR CHANGE ITS STAFF WAS UNDERTRAINED ITS MANAGEMENT AGING AND ITS TECHNOLOGY RUDIMENTARY AIDED BY MATINEE IDOL GOOD LOOKS A BRILLIANT MIND AND SKILLFUL PUBLIC RELATIONS THE NEW BANESTO CHAIRMAN WAS SOON BASKING IN ADMIRATION NEWSPAPERS AND MAGAZINES HONORED HIM AS BUSINESSMAN AND BANKER OF THE YEAR HIS YACHT WAS MAGNIFICENT AND HIS NEWLY ACQUIRED COUNTRY ESTATE LUXURIOUS SWOONING MATRONS SAW HIM AS THE SON IN LAW OF THEIR DREAMS WOULD BE YUPPIES IDOLIZED HIM QUOTE I WANT TO BE MARIO CONDE QUOTE JINGLED A POP SONG AT THE TIME A FLIRTATION WITH SPAIN'S RIGHT WING OPPOSITION PROMPTED SPECULATION THAT HE MIGHT ENTER POLITICS HEDGING HIS BETS HOWEVER HE SIMULTANEOUSLY BUILT BRIDGES WITH PRIME MINISTER FELIPE GONZALEZ'S SOCIALIST PARTY HE APPOINTED TO BANESTO'S BOARD A SOCIALIST WHO HAD RUN A STATE OWNED ELECTRIC UTILITY BUT HAD NO EXPERIENCE IN BANKING HIRED AS AN ADVISER A CONSERVATIVE LEGISLATOR WHO WAS FRIENDLY WITH ALFONSO GUERRA THE LEADER OF THE SOCIALISTS' LEFT WING AND NAMED ANOTHER SOCIALIST'S WIFE TO HEAD THE BANK'S CULTURAL FOUNDATION TO WIN FAVORABLE PUBLICITY AND SOME BELIEVE STIFLE ANY CRITICISM MR. CONDE BEGAN INVESTING IN THE MEDIA FIRST WITH HIS OWN MONEY AND THEN BANESTO'S FOR A WHILE HE WAS A SHAREHOLDER IN EL INDEPENDIENTE A WEEKLY NEWSPAPER AFTER IT FOLDED BANESTO TOOK A STAKE IN EL MUNDO A MADRID DAILY THE BANK ALSO BOUGHT A TWENTY FOUR POINT NINE PERCENT STAKE IN ANTENA THREE DE TELEVISION S. A. AND TWELVE POINT FIVE PERCENT OF GRUPO ZETA A MAGAZINE AND NEWSPAPER PUBLISHER ACCORDING TO MR. JIMENEZ LOSANTOS MR. CONDE USED THESE INVESTMENTS TO INFLUENCE COVERAGE THE WRITER SAYS FOR EXAMPLE THAT SOME MONTHS AFTER BANESTO FIRST BECAME A SHAREHOLDER IN NINETEEN NINETY ONE ANTENA THREE T. V. SWITCHED FROM HAWKISH CRITICISM OF THE SOCIALISTS TO BLAND COVERAGE MORE FAVORABLE TO MR. GONZALEZ AND HIS GOVERNMENT MR. JIMENEZ LOSANTOS WHO ALSO WAS A POLITICAL COMMENTATOR FOR THE T. V. STATION WAS FIRED SO WERE SEVERAL COLLEAGUES DESPITE BANESTO'S FLASHY PUBLICITY CAMPAIGNS THE BANK WASN'T AS STRONG AS IT SEEMED NEITHER MR. CONDE NOR THE TEAM HE BROUGHT WITH HIM FROM ANTIBIOTICOS HAD MUCH BANKING EXPERIENCE BETWEEN NINETEEN EIGHTY EIGHT AND NINETEEN NINETY TWO THE BANK LAVISHED EIGHT HUNDRED THIRTY SEVEN MILLION DOLLARS ON REMODELING BRANCHES AND ON A NEW COMPUTER SYSTEM AS REGULATORS DISCOVERED LATER HOWEVER IT FAILED TO INSTALL CONTROLS TO KEEP TABS ON ITS BURGEONING LOAN PORTFOLIO TO INSTILL NEW DRIVE AMONG STAFFERS IN ITS TWO THOUSAND THREE HUNDRED BRANCHES IT ABOLISHED RULES REQUIRING THEM TO SEEK HIGHER LEVEL AUTHORIZATION FOR MANY LOANS ACCORDING TO FORMER BANESTO EXECUTIVES IT ALSO FAILED TO TRAIN THEM IN ASSESSING CLIENTS' CREDIT WORTHINESS WHEN SPAIN SLIPPED INTO RECESSION IN LATE NINETEEN NINETY TWO BANESTO'S LOAN PORTFOLIO SOURED LAST MONTH A MEMBER OF THE BANK'S NEW BOARD SAID MANY OF ITS LARGE LOANS AND APPROXIMATELY TWENTY PERCENT OF ITS SMALL ONES THOSE BELOW ONE HUNDRED SEVENTY SEVEN THOUSAND DOLLARS WERE NONPERFORMING OR SUBSTANDARD AT THE SAME TIME BANESTO HAD CHARGED INTO A COSTLY INTEREST RATE WAR WITH OTHER SPANISH BANKS FOR DEPOSITS AND ITS OPERATING MARGINS ERODED JUST AS IT WAS RUNNING INTO OTHER PROBLEMS DATING FROM BEFORE MR. CONDE'S ARRIVAL THE BANK CONTROLLED AN INSURANCE COMPANY LA UNION AND EL FENIX ESPANOL S. A. AND AN ARRAY OF INDUSTRIAL COMPANIES RANGING FROM OIL TO MINING CONCERNS MANY OF THEM WERE ALSO BIG BORROWERS FROM BANESTO THOSE LINKS HAD POSED NO PROBLEM IN SPAIN'S ONCE LAXLY REGULATED BUSINESS ENVIRONMENT BUT THEY SUDDENLY THREATENED TO CONTRAVENE A NEW E. C. DIRECTIVE ON BANKING PRACTICES WORRIED ABOUT BANESTO'S CORE BANKING BUSINESS AND THE RISKS TO DEPOSITORS FROM ITS NONBANKING VENTURES THE BANK OF SPAIN PRESSURED MR. CONDE TO REDUCE THESE HOLDINGS EVER INVENTIVE HE PLANNED TO MERGE BANESTO'S NONBANKING OPERATIONS UNDER THE UMBRELLA OF A NEW ONE HUNDRED PERCENT OWNED HOLDING COMPANY CORPORACION INDUSTRIAL Y. FINANCIERA DE BANESTO OR LA CORPORACION IN PLACE OF HISTORIC BOOK VALUES FOR ITS SHAREHOLDINGS BANESTO WOULD BE ABLE TO BOLSTER ITS BALANCE SHEET BY RESTATING THEIR VALUES TO REFLECT HIGHER MARKET PRICES AT THE TIME TO RAISE ADDITIONAL CAPITAL THE HOLDING COMPANY WOULD SELL NEW SHARES BUT JUST AS HE WAS READY TO LAUNCH THE STOCK OFFERING IN NINETEEN NINETY IRAQ INVADED KUWAIT AND STOCK MARKETS PLUNGED THE PLANNED OFFERING HAD TO BE POSTPONED SO BANESTO RESORTED TO INCREASINGLY COMPLICATED MANEUVERS TO BOLSTER ITS FINANCES IN THE SERIES OF TRANSACTIONS SOME WERE BARGAINS FOR THE BUYERS OTHERS BENEFITED BANESTO AT THE EXPENSE OF ITS PARTNERS FORMER EXECUTIVES SAY IN A COMPLEX NINETEEN NINETY ONE TRANSACTION FOR EXAMPLE ASSURANCES GENERALES DE FRANCE PAID FOUR HUNDRED TWENTY FIVE MILLION DOLLARS FOR A TWO PERCENT STAKE IN BANESTO AND THREE POINT THREE SEVEN PERCENT OF LA CORPORACION PLUS STAKES IN JOINT VENTURES THAT GAVE A. G. F. AN INDIRECT TWENTY THREE PERCENT IN BANESTO'S LA UNION AND EL FENIX AND SALES OUTLETS FOR ITS OWN INSURANCE PRODUCTS THROUGH BANESTO BRANCHES THE FRENCH INSURER LATER CONCLUDED THAT LA UNION HAD INADEQUATE PROVISIONS FOR POTENTIAL CLAIMS HOPING TO SALVAGE ITS INVESTMENT A. G. F. RECENTLY AGREED TO ACQUIRE MAJORITY CONTROL OF LA UNION BUT IT HAS LOST A FEW FEATHERS IN AN OPERATION THAT PROVED MUCH MORE COSTLY THAN EXPECTED AN A. G. F. OFFICIAL ADMITS MEANWHILE ACCORDING TO FORMER EXECUTIVES MR. CONDE WAS DIRECTING TRANSACTIONS INVOLVING THE BANK IN WAYS THAT WHILE PERHAPS NOT ILLEGAL RAISE QUESTIONS ABOUT CONFLICTS OF INTEREST ACCORDING TO ONE FORMER EXECUTIVE OF BANESTO MR. CONDE MIXED HIS OWN AND HIS ASSOCIATES' BUSINESS INTERESTS WITH THOSE OF THE BANK IN THE CONTEXT OF ASSET SALES BY BANESTO BETWEEN NINETEEN EIGHTY NINE AND NINETEEN NINETY ONE THIS EXECUTIVE SAYS UP TO FIVE PERCENT OF THE VALUE OF SOME TRANSACTIONS WAS PAID IN THE FORM OF COMMISSIONS TO LAW FIRMS AND ADVISERS CLOSE TO MR. CONDE ONE DEAL THAT HAS COME UNDER PUBLIC SCRUTINY IS THE SALE OF THE MAJORCA BEACH DEVELOPMENT BY BANESTO UNITS TO MR. RICH AND HIS GROUP THE DEVELOPMENT WAS ACQUIRED BY TWO DUTCH INVESTMENT COMPANIES WHOSE INVESTORS INCLUDED MR. RICH WITH THE UNDERSTANDING THAT LOCAL ADMINISTRATIVE REQUIREMENTS HAD BEEN MET THE ARBITRATORS AWARDED THE BUYERS THEIR CLAIM FOR THE RETURN OF THE PURCHASE PRICE BANESTO IS APPEALING THE DECISION MR. RICH DIDN'T RESPOND TO REQUESTS FOR COMMENT EVEN MORE BIZARRE WAS THE ONE HUNDRED THIRTY FIVE MILLION DOLLAR SALE OF BANESTO'S ELEVEN STORY MADRID HEADQUARTERS AND NINE BRANCH BUILDINGS SELLING REAL ESTATE IS A COMMON CORPORATE MOVE TO FREE UP CASH FOR BETTER USE THE COMPANIES LEASE THE OFFICE SPACE BACK IN THIS CASE HOWEVER THE BUYER WAS LATER FOUND TO BE A COMPANY THAT HAD BORROWED MONEY FROM BANESTO TO FINANCE THE PURCHASE AND THE BANK RENTED BACK THE BUILDINGS AT ABOUT TRIPLE MARKET RATES ACCORDING TO THE BANK'S NEW MANAGEMENT THIS MANEUVER ENABLED BANESTO TO DISGUISE SOME OF ITS PROBLEMS WITH PROFITS FROM A ONETIME CAPITAL GAIN THAT'S BECAUSE THE BUILDINGS WERE SOLD AT A PRICE HIGHER THAN THE VALUE STATED ON BANESTO'S BOOKS BUT OVER THE NEXT EIGHT YEARS ACCORDING TO A MEMBER OF THE BANK'S NEW MANAGEMENT TEAM BANESTO UNDERTOOK TO PAY HIGH ENOUGH RENT TO COVER THE PURCHASER'S INTEREST PAYMENTS ON THE LOAN AND REPAYMENT OF THE LOAN ITSELF IN EFFECT WIPING OUT THE CAPITAL GAIN BY NINETEEN NINETY TWO THE BANK OF SPAIN WAS VOICING MISGIVINGS ABOUT BANESTO WHOSE PROVISIONS FOR FUTURE PENSION OBLIGATIONS WERE DEEMED INSUFFICIENT BY THE CENTRAL BANK AND WHOSE LOAN PORTFOLIO WAS DETERIORATING AS THE RECESSION INFLICTED MORE LOAN LOSSES AND DEPRESSED FOREIGNERS' INTEREST IN BUYING SPANISH COMPANIES RUMORS OF SERIOUS DIFFICULTIES AT BANESTO BEGAN SPREADING THE CONSERVATIVE BANCO POPULAR STOPPED LENDING TO BANESTO IN THE INTERBANK MARKET OTHERS ATTRACTED IN SOME CASES BY HIGH INTEREST RATES CONTINUED TO LEND MONEY TO BANESTO ALTHOUGH AT ONE POINT THE BANK OF SPAIN HAD TO PROVIDE IT WITH EMERGENCY LIQUIDITY CALLING IN MR. CONDE THE CENTRAL BANK SET SPECIFIC TARGETS FOR THE FUTURE ALLOCATION OF BANESTO'S EARNINGS TO PROVISIONS FOR BAD LOANS AND ITS PENSION FUND AND THE CENTRAL BANK BEGAN SCRUTINIZING BANESTO'S LOAN PORTFOLIO JUST AS THINGS SEEMED AT THEIR DARKEST BANESTO'S CHAIRMAN PULLED OFF ANOTHER COUP HIRING J. P. MORGAN AS ADVISER MR. CONDE ANNOUNCED A MAJOR PLAN TO RAISE MORE CAPITAL AND THAT CALMED FINANCIAL MARKETS AS PART OF THE PLAN MORE THAN FORTY INSTITUTIONAL AND PRIVATE INVESTORS JOINED J. P. MORGAN LAST SUMMER IN TAKING A SEVEN POINT NINE PERCENT STAKE IN BANESTO THROUGH A MORGAN PROMOTED INVESTMENT FUND ALSO LAST SUMMER THE U. S. CENTRAL CREDIT UNION WHICH PROVIDES FINANCIAL SERVICES FOR SOME THIRTEEN THOUSAND U. S. CREDIT UNIONS DEPOSITED TWO HUNDRED FIFTY FIVE MILLION DOLLARS IN UNINSURED ACCOUNTS AT BANESTO SPANISH GOVERNMENT OFFICIALS SAID HOWEVER THAT THE MONEY WOULD BE FULLY REPAID IN DECEMBER THE BUBBLE FINALLY BURST AFTER ANOTHER BANK OF SPAIN INSPECTION FOUND BANESTO'S LOAN PORTFOLIO IN WORSE STATE THAN PREVIOUSLY FEARED MR. CONDE AND J. P. MORGAN WERE STILL TRYING TO COBBLE TOGETHER ANOTHER CAPITAL RAISING EXERCISE HOWEVER IN CONVERSATIONS WITH THE BANK OF SPAIN ACCORDING TO SPANISH OFFICIALS J. P. MORGAN CONCEDED THAT IT COULDN'T GUARANTEE SUCCESS A SPOKESMAN FOR MORGAN DECLINES TO COMMENT ON ITS ROLE FACED WITH HEAVY SELLING OF BANESTO SHARES AND FEARS OF A RUN ON DEPOSITS THE BANK OF SPAIN INTERVENED IT DISMISSED MR. CONDE AND HIS BOARD INCLUDING ROBERTO MENDOZA A J. P. MORGAN VICE CHAIRMAN AND APPOINTED A NEW MANAGEMENT TEAM HEADED BY ALFREDO SAENZ A VICE CHAIRMAN OF THE GIANT BANCO BILBAO VIZCAYA THE BANK OF SPAIN HAS PROPOSED A BAILOUT IN AN EFFORT TO REMOVE THE RISK OF A CRISIS HITTING THE COUNTRY'S ENTIRE BANKING SYSTEM AND TO REASSURE SMALL INVESTORS BOTH MR. CONDE WHO FINANCED HIS PARTICIPATION IN THE RECENT BANESTO CAPITAL INCREASE WITH A FIFTY MILLION DOLLAR LOAN FROM ANOTHER BANK AND OTHER INVESTORS INCLUDING J. P. MORGAN'S CORSAIR PARTNERSHIP L. P. HAVE SUFFERED A SHARP DROP IN THE VALUE OF THEIR SHARES WHEN TRADING WAS RESUMED ON THE MADRID STOCK EXCHANGE TUESDAY AFTER A FIVE WEEK SUSPENSION BANESTO SHARES PLUNGED FIFTY SEVEN PERCENT FROM END OF DECEMBER LEVELS YESTERDAY THEY ROSE FIFTEEN PESETAS OR ONE POINT EIGHT PERCENT TO A CLOSE OF EIGHT HUNDRED SEVENTY PESETAS A MORGAN SPOKESMAN DECLINES TO COMMENT ON THE SHARE PRICES BUT MORGAN HAS SAID IN THE PAST THAT IT REGARDS CORSAIR'S HOLDING IN BANESTO AS A LONG TERM INVESTMENT LOOKING ON THE POSITIVE SIDE SOME SPANIARDS VIEW MR. CONDE'S PROBLEMS AS EVIDENCE OF THE END OF THE GET RICH QUICK FEVER OF THE NINETEEN EIGHTIES AND AS AN IMPORTANT STEP IN THE MODERNIZATION OF SPANISH SOCIETY BUT CHANGE IS LIKELY TO BE GRADUAL THE BANK OF SPAIN HAS OPENED PROCEEDINGS THAT COULD LEAD TO DISCIPLINARY ACTION AGAINST MR. CONDE AND OTHER MEMBERS OF BANESTO'S FORMER BOARD IN RELATION TO SUCH POSSIBLE IRREGULARITIES AS FAILING TO ENSURE BANESTO'S COMPLIANCE WITH CAPITAL ADEQUACY RULES AT WORST HOWEVER THEY WOULD BE FINED ONLY TEN MILLION PESETAS ABOUT SEVENTY ONE THOUSAND DOLLARS AND BANNED FROM ACTING AS BANK EXECUTIVES FOR TEN YEARS FEW SPANIARDS EXPECT ANY MORE DRASTIC SANCTIONS TO BEFALL BANESTO'S FORMER CHAIRMAN EVEN IF MR. CONDE IS FOUND TO HAVE VIOLATED THE LAW MR. JIMENEZ LOSANTOS PREDICTS NOTHING WILL HAPPEN TO CONDE TAXPAYERS WILL HAVE TO PAY FOR HIS YACHT AND HIS FORTUNE IN YOUR NOVEMBER TWENTY SIXTH PAGE ONE ARTICLE QUOTE CURRENCY WAVES GLOBAL MONEY TRENDS RATTLE SHOP WINDOWS IN HEARTLAND AMERICA QUOTE YOU DISCUSS HOW THE YEN HAS AFFECTED HOBART BROTHERS COMPANY UNFORTUNATELY YOU USE HOBART AND MOTOMAN INCORPORATED INTERCHANGEABLY MOTOMAN IS A JOINT VENTURE ROBOT COMPANY WHOSE MARKET IS THE AMERICAS NORTH AND SOUTH WE HAVE HAD A RECORD NINETEEN NINETY THREE WITH MORE THAN THIRTY EIGHT MILLION DOLLARS IN BOOKINGS AND THIRTY THREE MILLION DOLLARS IN REVENUE REFLECTING A FORTY FIVE PERCENT COMPOUNDED GROWTH SINCE OUR FORMATION FOUR AND A HALF YEARS AGO OUR PROFITS ARE ALSO STRONG YOUR ARTICLE CLAIMS THAT DUE TO THE IMPACT OF THE YEN AND THE FLUCTUATIONS OF THE SWEDISH KRONA THAT MOTOMAN SHED OUR SWEDISH ROBOTICS BUSINESS ACTUALLY MOTOMAN HAS NOTHING TO DO WITH EUROPE AND IT WAS HOBART WHO SOLD ITS INTEREST IN THE SWEDISH ROBOTICS COMPANY TO OUR OTHER PARENT YASKAWA ELECTRIC CORPORATION THE WORLD'S LEADING MANUFACTURER OF INDUSTRIAL ROBOTS THE BOTTOM LINE IN YOUR ARTICLE APPEARS TO BE THAT THE IMPACT OF THE YEN IS NEGATIVELY CHANGING THE LANDSCAPE OF HEARTLAND AMERICA THAT DEALS WITH THE JAPANESE THOUGH THIS WOULD BE THE LOGICAL CONCLUSION TO DRAW IN REALITY THE COMPANIES THAT DEAL WITH THE JAPANESE ARE FOCUSING ON CUSTOMER SATISFACTION AGGRESSIVE COST REDUCTION PROGRAMS AND DYNAMIC PRODUCT AND CURRENCY STRATEGIES RESULTING IN INCREASED SUCCESS IN SPITE OF THE DOLLAR'S WEAKNESS JAPAN'S GOVERNMENT IS PUTTING THE FINISHING TOUCHES ON A MASSIVE PACKAGE OF TAX CUTS AND OTHER MEASURES TO SPUR ITS SLUMBERING ECONOMY BUT THE POLITICAL COSTS MAY PROVE PROHIBITIVE MOREOVER WHILE THE PLAN MAY KEEP THE ECONOMY FROM DETERIORATING IT PROBABLY WON'T SPARE JAPAN THE KIND OF PAINFULLY LONG AND ANEMIC RECOVERY THAT THE U. S. RECENTLY ENDURED EARLY THURSDAY MORNING PRIME MINISTER MORIHIRO HOSOKAWA ANNOUNCED THE FIRST PART OF THE STIMULUS PACKAGE A CUT IN INCOME TAXES AND OTHER RELATED LEVIES VALUED AT ROUGHLY SIX TRILLION YEN FIFTY FIVE POINT SIX BILLION DOLLARS MR. HOSOKAWA ADDED THAT THE GOVERNMENT WORRIED ABOUT BALANCING THE BOOKS WOULD MAKE UP FOR LOST REVENUE BY BOOSTING THE CURRENT THREE PERCENT CONSUMPTION TAX TO SEVEN PERCENT APPARENTLY TO APPEASE THE DISSENTING SOCIALISTS THE TAX WILL BE RENAMED THE QUOTE WELFARE TAX QUOTE NEVERTHELESS THE DE FACTO TAX INCREASE DREW IMMEDIATE FIRE FROM THE LARGEST BLOC IN MR. HOSOKAWA'S FRAGILE COALITION THE SOCIALISTS WHO THREATENED TO ABANDON THE ALLIANCE AS A RESULT IT WILL BE DIFFICULT FOR US TO CONTINUE TO COOPERATE WITH THE COALITION SAID TOMIICHI MURAYAMA THE SOCIALIST PARTY CHAIRMAN AT A TWO A. M. NEWS CONFERENCE HE SAID THE PARTY MAY DECIDE WITHIN TWENTY FOUR HOURS WHETHER TO PULL ITS SIX MEMBERS OUT OF MR. HOSOKAWA'S CABINET MR. MURAYAMA ALSO THREATENED TO TRY TO BLOCK MR. HOSOKAWA'S STIMULUS PLAN WHEN IT COMES UP FOR PARLIAMENTARY DEBATE IN THE NEXT FEW WEEKS IT ISN'T CLEAR HOW A SOCIALIST DEFECTION WOULD AFFECT MR. HOSOKAWA'S ABILITY TO GOVERN POLITICAL ANALYSTS HAVE SPECULATED MR. HOSOKAWA'S ALLIANCE COULD SURVIVE FOR SOME TIME AS A MINORITY GOVERNMENT BUT WOULD BECOME MORE DEPENDENT ON COOPERATION FROM THE CONSERVATIVE OPPOSITION THE FULL PACKAGE WHICH MAY BE RELEASED THURSDAY IS EXPECTED TO TOTAL ABOUT FIFTEEN TRILLION YEN ONE HUNDRED THIRTY EIGHT BILLION DOLLARS MORE THAN ANY OF THE THREE PREVIOUS STIMULUS PACKAGES JAPAN HAS RELEASED IN THE PAST SEVENTEEN MONTHS BY COMPLEMENTING THE CONVENTIONAL PUBLIC WORKS SPENDING WITH INCOME TAX CUTS AS WELL AS DEREGULATION THIS ECONOMIC STIMULUS PACKAGE PUTS THE BURDEN ON JAPAN'S CONSUMERS NOT ITS BUREAUCRATS TO GET THE ECONOMY GOING BUT WHILE ANY PACKAGE COMES AS A RELIEF LARGELY BECAUSE LONG EXPECTED ECONOMIC MEASURES HAVE BEEN DELAYED BY POLITICAL TURMOIL AND SPLITS OVER HOW TO FINANCE TAX CUTS ECONOMISTS DON'T HAVE HIGH HOPES FOR AN IMMEDIATE TURNAROUND THE PROBLEMS GO SO MUCH DEEPER THAN A SHOT OF STIMULUS CAN FIX SAID DONALD KIMBALL ECONOMIST AT MITSUBISHI BANK LIMITED THE ONLY OUT IS TIME ECONOMISTS THINK THE TAX CUTS WILL HELP YET THEY WARN AGAINST TOO MUCH ENTHUSIASM DESPITE THE THIRTY TRILLION YEN TOTAL FOR THE PREVIOUS PACKAGES MOST ANALYSTS THINK THE FOURTH QUARTER DURING WHICH INDUSTRIAL PRODUCTION FELL AT AN ESTIMATED THIRTEEN POINT NINE PERCENT ANNUALIZED RATE MAY HAVE BEEN THE WORST YET IN JAPAN'S LONG ECONOMIC SLUMP THE TAX CUT IS HARDLY THE START OF AN ECONOMIC REVOLUTION FOR ONE THING THE CUTS PROBABLY WON'T KICK IN UNTIL MIDYEAR AT THE EARLIEST MOREOVER THEY WILL BE OFFSET EVENTUALLY BY THE NEW WELFARE TAX A REFLECTION OF THE POWER OF THE FISCALLY CONSERVATIVE MINISTRY OF FINANCE WHICH OPPOSES DEFICIT SPENDING ECONOMISTS ALSO ARE SKEPTICAL HOW MUCH CONSUMERS WOULD SPEND RIGHT AWAY AND HOW MUCH THEY WOULD SAVE TAX RELIEF SHOULD HAVE A POSITIVE PSYCHOLOGICAL EFFECT ON THE AVERAGE PERSON IN JAPAN WHERE THE TOP TAX RATE IS ABOUT SIXTY FIVE PERCENT THE TOP U. S. FEDERAL RATE IS UNDER FORTY PERCENT IT TAKES SOME OF THE BURDEN OFF US SALARYMEN SAID YOSHIKAZU MIYABE A SIXTY FIVE YEAR OLD EXECUTIVE BUT HE DOUBTS HE'LL SPEND MUCH OF HIS WINDFALL I DON'T HAVE ANY ROOM TO PUT NEW THINGS BECAUSE OF JAPAN'S NOTORIOUSLY SMALL HOMES MOST ANALYSTS SEE THE JAPANESE ECONOMY BOUNCING ALONG THE BOTTOM OVER THE NEXT SIX MONTHS REGISTERING LITTLE OR NO GROWTH THEY SEE A GRADUAL PICKUP ONCE CONSUMERS START TO SPEND AND BUSINESSES RESOLVE THEIR INVENTORY OVERHANGS AND RESUME INVESTMENT CONSENSUS ECONOMICS LONDON PUTS GROWTH AT JUST ZERO POINT TWO PERCENT THIS YEAR AND ONE POINT FIVE PERCENT IN NINETEEN NINETY FIVE THAT ADDS UP TO THE SORT OF SLOW GROWTH RECOVERY THAT UNTIL RECENTLY FRAYED NERVES IN THE U. S. ROBERT FELDMAN CHIEF ECONOMIST AT SALOMON BROTHERS ASIA LIMITED SEES AN ANNUALIZED ZERO POINT ONE PERCENT RATE OF GROWTH IN THE FIRST HALF OF NINETEEN NINETY FOUR AND A ONE POINT NINE PERCENT RATE IN THE SECOND HALF THE BIGGEST OBSTACLE TO RECOVERY IS THAT SOME OF JAPAN'S ECONOMIC PROBLEMS ARE BEYOND THE REACH OF STIMULUS PACKAGES TAKE FOR EXAMPLE THE RESURGENT YEN THE YEN HAS RISEN TO ABOUT ONE HUNDRED EIGHT TO THE DOLLAR FROM ONE HUNDRED TWELVE IN THE PAST THREE WEEKS PARTLY OUT OF FEAR THAT TRADE FRICTIONS MAY AGAIN PROMPT U. S. OFFICIALS TO TALK UP THE JAPANESE CURRENCY SINCE THAT MAKES JAPANESE GOODS MORE EXPENSIVE OVERSEAS THAT COULD WOUND THIS EXPORT DRIVEN ECONOMY MOREOVER THE PACKAGE WOULDN'T ATTACK SOME OF THE STRUCTURAL PROBLEMS IN THE ECONOMY THERE'S A HUGE AMOUNT OF OVERCAPACITY IN THE MANUFACTURING SECTOR A RESULT OF EXCESS CAPITAL SPENDING IN THE LATE NINETEEN EIGHTIES AUTO EXECUTIVES SAY JAPAN HAS TWO MILLION CARS' WORTH OF IDLE FACTORY CAPACITY A SITUATION THAT'S LIKELY TO WORSEN AS JAPANESE AUTO MAKERS SHIFT PRODUCTION OVERSEAS TO COPE WITH THE HIGH YEN EXCESS CAPACITY ALSO MEANS EXCESS LABOR IN JAPAN WHERE IT'S STILL HARD TO LAY OFF WORKERS EVEN LOW ESTIMATES SAY JAPAN HAS ABOUT ONE MILLION REDUNDANT WORKERS STILL ON PAYROLLS IN CASE ANYONE IS STILL INTERESTED IN THE KANAB AMBERSNAIL DECEMBER TWENTY SEVENTH EDITORIAL AND JANUARY THIRTEENTH LETTER HERE'S A STORY THAT MIGHT ADD SOME PERSPECTIVE MY NINETY SIX YEAR OLD UNCLE G. R. QUOTE DOC QUOTE AIKEN IS A LONGTIME RESIDENT OF KANAB UTAH HE SERVED FOR MANY YEARS AS THE TOWN'S ONLY PHYSICIAN AND WAS ALSO MAYOR AND REPRESENTATIVE TO THE UTAH LEGISLATURE LAST JUNE WHEN I TOLD HIM ABOUT THE REPORTS OF THE ENDANGERED AMBERSNAIL HE EXCLAIMED MY GOD I HOPE THOSE AREN'T THE SNAILS NITA AND I TOOK TO THE PONDS IT SEEMS THAT BACK IN THE LATE NINETEEN THIRTIES DOC'S WIFE NITA ORDERED SOME WATERLILIES FROM CHINA TO DECORATE THE POND BEHIND THE HOSPITAL WHEN THE LILIES ARRIVED THEY WERE INFESTED WITH DOZENS OF SMALL YELLOWISH SNAILS RATHER THAN KILL THEM DOC TOOK THEM TO SOME PONDS NORTH OF TOWN AND RELEASED THEM THINKING NOTHING MORE ABOUT IT UNTIL LAST JUNE COULD IT BE THAT THE ENDANGERED AMBERSNAIL IS ACTUALLY A FOREIGN INVADER WITH LOTS OF RELATIVES BACK HOME IN RESPONSE TO YOUR JANUARY SEVENTEENTH EDITORIAL QUOTE SWARTHMORE'S CONFUSED CORRECTNESS QUOTE MALES SHOULD KNOW THAT QUOTE CRUDE AMOROUS PERSISTENCE QUOTE IS INAPPROPRIATE AND WILL NOT BE TOLERATED WHERE DO YOU DRAW THE LINE BETWEEN CRUDE PERSISTENCE AND CRIMINAL STALKING THAT LINE REMAINS UNCLEAR UNTIL A WOMAN HAS BEEN ATTACKED IT IS BETTER TO ERR IN THE DIRECTION OF BEING OVERPROTECTIVE BASED ON YOUR EDITORIAL I SUPPORT THE SWARTHMORE DECISION TO DISMISS THE INTIMIDATING STUDENT I DOUBT THAT THE FEMALE STUDENT WOULD HAVE GONE THROUGH THE ORDEAL OF PURSUING PROTECTION FROM THE SCHOOL ADMINISTRATION IF SHE DID NOT FEEL SERIOUSLY THREATENED I DOUBT THAT THE SCHOOL WOULD HAVE TAKEN THIS ACTION IF IT DID NOT BELIEVE THAT THERE WAS REASON TO DO SO THE FOLLOWING IS EXCERPTED FROM AN EXCHANGE TUESDAY AT THE SENATE BANKING COMMITTEE CONFIRMATION HEARINGS OF THE NOMINEE TO CHAIR THE FEDERAL DEPOSIT INSURANCE CORPORATION RICKI TIGERT SENATOR LAUCH FAIRCLOTH R. N. C. I HAD THE OPPORTUNITY LAST WEEK TO VISIT WITH MS. TIGERT VERY BRIEFLY BUT THERE ARE A LOT OF ISSUES THAT ARE GOING TO BE CONFRONTING THE F. D. I. C. IN THE NEXT FEW YEARS BUT SINCE THERE HAVE BEEN NO HEARINGS ON THE WHITEWATER FIASCO I WANTED TO TALK TO MISS TIGERT TODAY ABOUT MADISON GUARANTY SAVINGS AND LOAN AND UNLESS AND UNTIL CONGRESS HOLDS HEARINGS FORUMS SUCH AS THIS ARE ABOUT THE ONLY OPPORTUNITY WE HAVE TO ASK THE QUESTIONS THE AMERICAN PEOPLE WANT ANSWERED IF YOU WOULD TEND TO AS SHORT AN ANSWER AS POSSIBLE MS. TIGERT I WOULD APPRECIATE IT RICKI TIGERT OF COURSE SENATOR FAIRCLOTH IN LOOKING AT THE NEWS STORIES PUBLISHED I SEE YOU ARE A PERSONAL FRIEND AND I DID NOT KNOW THIS IN THE MEETING THE OTHER DAY OF PRESIDENT AND MRS. CLINTON I SEE IN TIME MAGAZINE JANUARY SEVENTEENTH EDITION ONE OF MRS. CLINTON'S STATEMENTS WAS THAT HER FAVORITE ACTIVITY AT RENAISSANCE WEEKEND WAS QUOTE HANGING OUT WITH RICKI TIGERT QUOTE THAT WAS HER FAVORITE ACTIVITY IS IT ACCURATE TO SAY THAT YOU ARE A PERSONAL FRIEND OF BOTH MRS. CLINTON AND PRESIDENT CLINTON TIGERT I'VE KNOWN THE PRESIDENT AND MRS. CLINTON FOR EIGHT YEARS AND I RESPECT AND ADMIRE BOTH OF THEM SENATOR FAIRCLOTH DID YOU KNOW ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL TIGERT I'VE NEVER MET MR. HUBBELL FAIRCLOTH DID YOU EVER MEET VINCE FOSTER TIGERT I'VE NEVER MET I DID NOT MEET MR. FOSTER FAIRCLOTH WERE THESE BOTH NOT ATTENDANTS AT RENAISSANCE WEEKEND TIGERT TO MY KNOWLEDGE THEY NEVER ATTENDED FAIRCLOTH THE F. D. I. C. HAS AN ONGOING INVESTIGATION INTO THE MILLIONS OF DOLLARS THAT MADISON GUARANTY LOST THAT THE TAXPAYERS PICKED UP VERY BRIEFLY WHAT IS THE STATUS OF THE INVESTIGATION AND WHAT HAVE YOU LEARNED ABOUT THE INVOLVEMENT OF WEBSTER HUBBELL AND THE ROSE LAW FIRM TIGERT SENATOR I KNOW NOTHING ABOUT THIS MATTER OTHER THAN WHAT I'VE READ IN THE NEWSPAPER I CONSIDER MYSELF TO BE A PRIVATE CITIZEN UNTIL AND IF I AM CONFIRMED BY THE U. S. SENATE FAIRCLOTH IF YOU ARE CONFIRMED YOU ARE GOING TO BE HEAD OF WHAT IS SUPPOSED TO BE AN INDEPENDENT AGENCY YOU ARE ALSO A VERY CLOSE FRIEND OF THE CLINTONS AND MANY OTHERS WHO ARE IMPLICATED IN THE WHITEWATER SCANDAL NOW EVERY OTHER FRIEND OF THE CLINTONS THAT HAS BEEN APPOINTED TO GOVERNMENT HAS BEEN DISCOURAGING CONGRESSIONAL INVESTIGATIONS INTO THE WHITEWATER AND MADISON SAVINGS AND LOAN SCANDALS MS. RENO WAS HERE NOVEMBER SEVENTH AND I ASKED HER VERY STRAIGHTFORWARD TO APPOINT AN INDEPENDENT INVESTIGATOR TO TAKE A LOOK AT IT SHE WAS QUITE ADAMANT IN HER STATEMENT THAT SHE WAS HANDLING IT SHE WOULD DECIDE WHEN TO APPOINT AN INVESTIGATOR AND THAT THE BUCK STOPPED WITH HER I WAS REALLY IMPRESSED BY WHAT SHE HAD TO SAY BUT I FIND OUT THREE MONTHS OR TWO AND A HALF MONTHS LATER THAT SHE DECIDES THAT SHE NEEDS TO APPOINT AN INVESTIGATOR WHEN THE INVESTIGATEES I. E. PRESIDENT CLINTON AND MS. CLINTON SAY IT IS FINE TO APPOINT SOMEBODY TO INVESTIGATE US SHE NEVER MOVED UNTIL THE PRESIDENT SAID YES IT LOOKS LIKE NOW WE BETTER APPOINT AN INVESTIGATOR AND UP SHE COMES WITH AN INVESTIGATOR IS THAT THE KIND OF INDEPENDENCE WE CAN EXPECT FROM YOU OR WILL THERE BE ANOTHER KIND TIGERT SENATOR I'VE SPENT MOST OF MY CAREER IN PUBLIC SERVICE IN NONPOLITICAL JOBS I SPENT SEVEN OF THOSE YEARS AT THE FEDERAL RESERVE I KNOW WHAT INDEPENDENCE IS I'VE SERVED AT AN INDEPENDENT AGENCY I BELIEVE IN THE CREDIBILITY OF THE REGULATORY PROCESS AND I THINK IT IS ESSENTIAL THAT THE F. D. I. C. CONTINUE ITS STRONG HISTORY OF INDEPENDENCE AND IF I'M CONFIRMED BY THE SENATE I CAN ASSURE YOU THAT THE F. D. I. C. WILL BE INDEPENDENT FAIRCLOTH WELL DOESN'T IT PRESENT AN ALMOST IMPOSSIBLE SITUATION WHEN THIS VERY VERY CLOSE FRIENDSHIP WITH MRS. CLINTON SHE SAYS SHE ENJOYS HANGING OUT WITH YOU DOESN'T THAT PRESENT ALMOST AN IMPOSSIBLE SITUATION THAT HERE YOU ARE INVESTIGATING AND IN CHARGE OF ANY POSSIBLE CRIMINAL VIOLATIONS AND CERTAINLY EXTREME EMBARRASSMENT OF YOUR FAVORITE HANGING OUT FRIEND AND SHE BEING THE FIRST LADY THAT WOULD PRESENT A PROBLEM TO ME TIGERT SENATOR WITH RESPECT TO ANY ISSUE THAT COMES BEFORE THE F. D. I. C. DURING MY TENURE IF I AM CONFIRMED BY THE U. S. SENATE I WILL BE EXTREMELY SENSITIVE TO ISSUES OF POTENTIAL CONFLICTS OF INTEREST OR ANY APPEARANCE OF CONFLICT OF INTEREST AS I'VE INDICATED I KNOW NOTHING ABOUT THIS MATTER OTHER THAN READING A FEW NEWSPAPER ARTICLES BUT I AM ABSOLUTELY COMMITTED TO ASSURING THE CREDIBILITY OF EVERY REGULATORY UNDERTAKING OF THE F. D. I. C. SHOULD AN OCCASION ARISE WITH RESPECT TO ANY ISSUE WHERE THE ISSUE OF AN APPEARANCE OF CONFLICT OF INTEREST COULD COME UP I WILL CONSULT WITH THE ETHICS OFFICIALS OF THE F. D. I. C. AND WITH THE OFFICE OF GOVERNMENT ETHICS AND TAKE THE APPROPRIATE STEPS FAIRCLOTH WELL DON'T WE ALMOST GO IN WITH AN INEVITABLE CONFLICT WHEN YOUR CLOSEST PERSONAL FRIEND YOU ARE RESPONSIBLE FOR INVESTIGATING WOULDN'T YOU ALMOST HAVE TO WITHDRAW BEFORE YOU SENATOR ALFONSE D'AMATO R. N. Y. WOULD THE SENATOR YIELD FOR A POINT ON THAT FAIRCLOTH I WILL D'AMATO MISS TIGERT LET ME ASK YOU THIS IF INDEED YOU FOUND YOURSELF IN A SITUATION WHERE YOU ARE CONFIRMED AND YOU HAVE AN ONGOING INVESTIGATION AND IT MIGHT POSSIBLY INVOLVE THE PRESIDENT OR MRS. CLINTON WOULD YOU RECUSE YOURSELF TIGERT AS I'VE INDICATED SENATOR WITH RESPECT TO ANY MATTER WHERE THERE IS AN APPEARANCE OF CONFLICT OF INTEREST AFTER CONSULTATION WITH THE APPROPRIATE ETHICS OFFICIALS I WILL TAKE THE NECESSARY STEPS TO ASSURE THE CREDIBILITY OF THE REGULATORY AND ENFORCEMENT PROCESS D'AMATO I THINK WHAT SENATOR FAIRCLOTH IS REALLY COMING TO IS THAT IT WOULD BE AND WOULD APPEAR TO BE EXTREMELY DIFFICULT IF NOT IMPOSSIBLE AS IT RELATES TO ANY ACTIONS THAT THE F. D. I. C. MIGHT HAVE TO TAKE OR DECIDE TO TAKE ONE WAY OR THE OTHER THAT YOU WOULD BE IN A POSITION IN A JUST ABSOLUTELY UNTENABLE POSITION IF YOU WERE A PERSON WHO HAD TO MAKE THAT DECISION I BELIEVE THAT WHAT WE ARE GETTING TO IS HOW WOULD YOU HANDLE THAT WOULD YOU RECUSE YOURSELF AND I DON'T THINK YOU'D HAVE TO LOOK TO ETHICS PEOPLE I THINK ANYBODY MIGHT TELL YOU THAT YOU MIGHT WANT SOME TIME TO THINK ABOUT THIS BUT IT WOULD SEEM THAT A RECUSAL WOULD BE MOST OBVIOUS IN THIS KIND OF SITUATION IN ANYTHING IN ANY DEALINGS WITH WHITEWATER OR WITH THE POSSIBLE REVIEW OR WITH BRINGING ANY ACTIONS AS IT RELATES TO MADISON ET CETERA YOU WOULD BE IN THIS POSITION AND ANYONE ELSE IN YOUR POSITION WOULD DO THE SAME GOOD FAITH WOULD PROBABLY REQUIRE YOU TO RECUSE YOURSELF I COULDN'T SEE HOW YOU COULD GET AROUND THIS I DO NOT MEAN TO BE ARGUMENTATIVE OR TO PUT YOU ON THE SPOT I'M TRYING TO HELP YOU OUT TIGERT I APPRECIATE THAT SENATOR D'AMATO FAIRCLOTH FROM WHAT MRS. CLINTON HAS SAID AND FROM WHAT YOU SAID YOU ARE TALKING ABOUT AVOIDING A CONFLICT AND IF I HAVE ANY SENSITIVITY AS TO WHERE WE ARE HEADED IT IS AS STRAIGHT INTO ONE AS YOU CAN GO BECAUSE FROM EVERYTHING WE HAVE READ AND I CERTAINLY HAVE NO KNOWLEDGE OTHER THAN WHAT I HAVE READ IN EVERY PUBLICATION OUT THAT THERE IS AN INVESTIGATION OF WHITEWATER ROSE LAW FIRM MADISON SAVINGS AND LOAN MANY ASPECTS OF IT INVOLVE MRS. CLINTON AND PRESIDENT CLINTON NOW THE F. D. I. C. IS IN THE MIDDLE OF THE INVESTIGATION AND THE INVESTIGATION INVOLVES YOUR TWO CLOSEST PERSONAL FRIENDS WHAT ARE YOU GOING TO ASK SOMEBODY THE ETHICS COMMITTEE WHAT ARE YOU GOING TO ASK THEM ARE THEY REALLY YOUR CLOSE PERSONAL FRIENDS I DON'T EVEN SEE IT SEEMS INEVITABLE D'AMATO I DON'T THINK IT'S ABOVE QUESTION AND I THINK WHAT WE'RE ATTEMPTING TO GET FROM YOU STRAIGHT UP OR DOWN WILL YOU RECUSE YOURSELF IN ANY MATTER AS IT RELATES TO MADISON AND WHITEWATER SENATOR DONALD RIEGLE D. MICHIGAN AS I HEAR YOUR ANSWER WHAT YOU'VE SAID IS THAT YOU DON'T KNOW ANYTHING BEYOND WHAT YOU'VE SEEN IN THE NEWSPAPERS YOU'RE ABOUT TO ASSUME THIS JOB IF CONFIRMED AND THAT IF YOU FIND THAT IN THE COURSE OF THE WAY THAT ISSUE IS BEING HANDLED WITHIN THE F. D. I. C. OR FOR THAT MATTER ANYTHING ELSE BUT SPECIFICALLY ON THIS ONE IF YOU FIND ANYTHING THAT SUGGESTS TO YOU ANY CONFLICT OR APPEARANCE OF CONFLICT YOU'LL ACT ON THAT YOU'LL TALK TO THE ETHICS OFFICIALS AND YOU'LL TAKE WHATEVER STEPS ARE APPROPRIATE FORMER SECRETARY OF STATE SHULTZ IN HIS JANUARY TWENTY EIGHTH LETTER TO THE EDITOR IN RESPONSE TO MY JANUARY TWENTY FOURTH EDITORIAL PAGE ARTICLE SAYS I WAS WRONG TO SAY THAT SPECIAL PROSECUTOR LAWRENCE WALSH HAD REPORTED THAT MR. SHULTZ HAD ADMITTED FALSE TESTIMONY HERE IS WHAT MR. WALSH WROTE P. THREE HUNDRED SEVENTY THREE OF HIS FINAL REPORT READERS MAY JUDGE FOR THEMSELVES IF I WAS WRONG TAKEOVER STOCK TRADERS SAID VIACOM INCORPORATED HAS A CLEAR BUT NARROW EDGE OVER RIVAL BIDDER Q. V. C. NETWORK INCORPORATED AFTER TUESDAY'S FINAL ROUND OF BIDDING FOR ENTERTAINMENT AND PUBLISHING COMPANY PARAMOUNT COMMUNICATIONS INCORPORATED REFLECTING TRADERS' VIEW THAT Q. V. C. HAS THE INFERIOR BID Q. V. C. STOCK SURGED YESTERDAY ENDING AT FORTY SEVEN DOLLARS A SHARE UP TWO DOLLARS AND TWENTY FIVE CENTS ON THE NASDAQ STOCK MARKET VIACOM CLASS B. SHARES SAGGED SIXTY TWO POINT FIVE CENTS A SHARE TO THIRTY THREE DOLLARS AND FIFTY CENTS ON THE AMERICAN STOCK EXCHANGE BECAUSE THE WINNING BIDDER FOR PARAMOUNT WILL ISSUE MILLIONS OF NEW SHARES AND TAKE ON DEBT SHARES OF THE PERCEIVED LEADING BIDDER USUALLY FALL WHILE THE TRAILING BIDDER'S STOCK RISES TUESDAY'S FINAL BIDS CLIMAXED AN EPIC TAKEOVER BATTLE FOR ONE OF THE LAST REMAINING INDEPENDENT ENTERTAINMENT COMPANIES PARAMOUNT HAS BEEN SWEPT UP IN A FRENZY OF DEMAND FOR PROGRAMMING AMONG CABLE T. V. PUBLISHING AND TELECOMMUNICATIONS COMPANIES ALL JOCKEYING FOR POSITION IN THE MULTIMEDIA FUTURE RICHARD H. SCHNEIDER A TAKEOVER STOCK TRADER SAID QUOTE I THINK IT IS VERY CLEAR THAT VIACOM HAS COME UP WITH REAL QUANTIFIABLE VALUE TO THE PARAMOUNT SHAREHOLDERS AND ABSENT SOME STRONG TURN OF EVENTS MY FEELING IS THAT VIACOM WILL BE THE PARAMOUNT VICTOR QUOTE BUT THE HIGHER MARKET VALUE OF Q. V. C.'S CASH AND STOCK OFFER CONTINUED TO CONFUSE SOME INVESTORS DURING TRADING YESTERDAY AND CLOUDED THE OUTCOME OF THE CONTEST INVESTORS HAVE UNTIL FEBRUARY FOURTEENTH TO CHOOSE BETWEEN THE TWO OFFERS Q. V. C. A HOME SHOPPING COMPANY WAS CLEARLY HOPING TO CAPITALIZE ON THE FACT THAT THE MARKET VALUE OF ITS OFFER WHICH NOW TOPS EIGHTY SEVEN DOLLARS A SHARE OR TEN POINT FOUR BILLION DOLLARS FAR EXCEEDS THE ROUGHLY EIGHTY THREE DOLLAR A SHARE TEN BILLION DOLLAR VALUE OF VIACOM'S BID EVEN THOUGH MOST TRADERS CONSIDER THOSE DAILY PRICE QUOTES ALMOST MEANINGLESS MEANWHILE PARAMOUNT'S OPERATIONS HAVE SUFFERED EVEN AS THE BIDDING FOR THE COMPANY HAS ESCALATED YESTERDAY PARAMOUNT SURPRISED WALL STREET WITH THE ANNOUNCEMENT THAT IT EXPECTS TO REPORT A LOSS OF ABOUT THIRTY FIVE MILLION DOLLARS TO FORTY MILLION DOLLARS OR TWENTY NINE CENTS TO THIRTY THREE CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED MONDAY THAT WOULD COMPARE WITH A LOSS OF SIXTY SIX POINT EIGHT MILLION DOLLARS OR FIFTY SIX CENTS A SHARE A YEAR EARLIER PARAMOUNT SAID IT EXPECTS TO REPORT AN EIGHTEEN MILLION DOLLAR LOSS FROM CABLE CHANNEL U. S. A. NETWORK WHICH IT OWNS JOINTLY WITH M. C. A. INCORPORATED PARAMOUNT SAID IT ALSO WILL REPORT A LOSS IN ITS MOVIE OPERATIONS LARGELY BECAUSE OF AN UNEXPECTED WRITE DOWN ON THE FILM ADDAMS FAMILY VALUES ANALYSTS GENERALLY HAD EXPECTED THE COMPANY TO REPORT A PROFIT IN THE QUARTER THIS IS ANOTHER INDICATION OF THE VOLATILITY AND RISKINESS OF THIS BUSINESS SAID ED HATCH AN ANALYST AT U. B. S. SECURITIES Q. V. C. OR VIACOM WILL HAVE THEIR WORK CUT OUT FOR THEM IN TURNING PARAMOUNT AROUND PARAMOUNT SHARES SLUMPED ONE POINT EIGHT SEVEN FIVE DOLLARS A SHARE TO SEVENTY EIGHT DOLLARS ON THE NEW YORK STOCK EXCHANGE REFLECTING DISAPPOINTMENT AMONG INVESTORS WHO HAD BEEN HOPING FOR HUGE LAST MINUTE INCREASES IN ONE OR BOTH OF THE OFFERS AS WELL AS CONCERN ABOUT PARAMOUNT'S RESULTS BOTH Q. V. C. AND VIACOM HAD BEEN INFORMED OF THE EXPECTED LOSS MEANWHILE SOME TRADERS WHO BEGAN THE DAY CALLING VIACOM A CABLE T. V. PROGRAMMER THE SURE WINNER WERE LESS CERTAIN BY MIDAFTERNOON BASED ON REPORTS THAT Q. V. C. MIGHT TAKE NEW STEPS TO GET BACK INTO THE CONTEST PEOPLE IN THE Q. V. C. CAMP UNWILLING TO CONCEDE DEFEAT WERE SAID TO BE WEIGHING AT THE VERY LEAST A PUBLIC RELATIONS CAMPAIGN TO PROMOTE Q. V. C. STOCK IN THE TWO WEEKS LEADING UP TO FEBRUARY FOURTEENTH WITH VIACOM AHEAD IN THE VIEW OF MANY OF THE SHORT TERM TRADERS WHO OWN ROUGHLY HALF THE STOCK Q. V. C. HOPES TO WIN SUPPORT AMONG LONGER TERM INSTITUTIONAL INVESTORS BY STRESSING ITS BUSINESS PROSPECTS OVER VIACOM'S MUCH WILL DEPEND ON Q. V. C.'S PERSUASIVENESS OVER THE NEXT TWO WEEKS AND THE SUPPORT THE STOCK WILL RECEIVE FROM BELLSOUTH AND OTHERS SAID MR. HATCH LISBETH BARRON AN ANALYST AT S. G. WARBURG AND COMPANY ADDED IF YOU'RE A TRADER YOU DON'T HAVE ANY CHOICE BUT TO GO TO VIACOM BUT SHE SAID INVESTORS WITH QUOTE ANY TYPE OF LONGER TERM PERSPECTIVE QUOTE MAY FAVOR Q. V. C. PARTLY BECAUSE IT WOULD BUY PARAMOUNT WITH LESS DEBT THERE WAS ALSO SPECULATION THAT Q. V. C. OR ONE OF ITS CORPORATE ALLIES MIGHT ACT TO IMPROVE THE Q. V. C. BID BY ANNOUNCING A PLAN TO ACQUIRE Q. V. C. SHARES WHICH COULD BOLSTER THE STOCK COMPONENT OF Q. V. C.'S BID BUT SUCH A MOVE MIGHT DRAW A LEGAL CHALLENGE BECAUSE BOTH COMPANIES AGREED NOT TO MAKE CHANGES IN THEIR OFFERS AFTER FEBRUARY FIRST UNDER BIDDING PROCEDURES SET UP SIX WEEKS AGO BY PARAMOUNT AND ANY COORDINATED Q. V. C. SHARE BUYING PLAN COULD BE INTERPRETED AS A CHANGED BID CHARLES LEEDS A PARTNER AT OMEGA ADVISERS INCORPORATED A HEDGE FUND THAT OWNS MORE THAN FOUR MILLION PARAMOUNT SHARES SAID HE BELIEVES THE VIACOM BID IS CLEARLY SUPERIOR TO Q. V. C.'S BY A MARGIN OF ABOUT TWO DOLLARS A PARAMOUNT SHARE TRADERS SAID VIACOM'S STOCK WAS TRADING ON A BASIS THAT INCLUDES THE DILUTIVE EFFECTS OF ISSUING STOCK TO FINANCE THE ACQUISITION WHILE Q. V. C.'S STOCK WAS TRADING WITHOUT SUCH DILUTIVE EFFECTS ONE TRADER WITH A LARGE PARAMOUNT POSITION ASSUMES THAT Q. V. C. STOCK WOULD TRADE AT THIRTY FIVE DOLLARS A SHARE IF Q. V. C. WON THE CONTEST TWELVE DOLLARS BELOW ITS CURRENT MARKET VALUE BUT THAT VIACOM B. SHARES WOULD ONLY TRADE ONE DOLLAR AND FIFTY CENTS A SHARE BELOW THE CURRENT MARKET PRICE IF VIACOM WON ON THAT BASIS THIS TRADER VALUES THE Q. V. C. BID AT SEVENTY NINE DOLLARS AND THIRTY CENTS A SHARE OR NINE POINT FIVE BILLION DOLLARS COMPARED WITH EIGHTY ONE DOLLARS AND FIVE CENTS A SHARE OR NINE POINT SEVEN BILLION DOLLARS FOR VIACOM ANOTHER TRADER NOTED THAT Q. V. C.'S BID INCLUDES THREE POINT FOUR BILLION DOLLARS IN COMMON STOCK COMPARED WITH ONLY ONE POINT NINE BILLION DOLLARS FOR VIACOM BUT THAT VIACOM'S STOCK COMPONENT IS PROTECTED WITH A SECURITY DESIGNED TO PROVIDE VALUE IF VIACOM STOCK DOESN'T RISE OVER THE NEXT FEW YEARS PARAMOUNT ADVISERS CLEARLY CONCERNED THAT THE BIDDING PROCESS RESULTED IN SUCH DISAPPOINTING BIDS WHILE THE COMPANY'S FUNDAMENTALS ARE DETRIORATING WERE ALSO MAPPING PLANS TO END THE PROCESS EVEN IF NEITHER BIDDER GAINS FIFTY POINT ONE PERCENT OF PARAMOUNT STOCK BY FEBRUARY FOURTEENTH ONE PLAN UNDER CONSIDERATION IF NEITHER BIDDER GAINED THE REQUIRED MAJORITY WAS FOR THE PARAMOUNT BOARD TO DROP THE COMPANY'S POISON PILL TAKEOVER DEFENSE FOR WHICHEVER BIDDER RECEIVED MORE SHARES UNDER ITS TENDER OFFER THE BOARD WHICH ENDORSED VIACOM'S LAST BID ON JANUARY TWENTY FIRST IS EXPECTED TO HOLD TO THAT VIEW AT A MEETING TOMORROW MEANWHILE A PERSON IN THE VIACOM CAMP SAID THAT PARAMOUNT'S DISAPPOINTING EARNINGS ESTIMATE DOESN'T CHANGE THE WAY VIACOM LOOKS AT THE VALUE OF THE ASSET Q. V. C. HAD NO COMMENT ANALYSTS WERE PARTICULARLY SURPRISED BY THE RESULTS AT U. S. A. NETWORK LONG CONSIDERED ONE OF THE INDUSTRY'S MOST SUCCESSFUL CABLE CHANNELS BUT THE COMPANY APPARENTLY OVERPAID FOR PROGRAMMING THAT DIDN'T GENERATE EXPECTED RATINGS AND ADVERTISING DOLLARS PARAMOUNT SAID U. S. A. EXPECTS TO RECORD A SEVENTY EIGHT MILLION DOLLAR PRETAX CHARGE FOR THE YEAR ENDED DECEMBER THIRTY FIRST TO ADJUST THE VALUE OF RIGHTS TO THE PROGRAMMING LAURA LANDRO CONTRIBUTED TO THIS ARTICLE K. N. ENERGY INCORPORATED'S GAS RESERVES DEVELOPMENT UNITS PURCHASED A SUBSTANTIAL PORTION OF THE GAS RESERVES AND PRODUCTION PROPERTIES OF FUEL RESOURCES DEVELOPMENT COMPANY A UNIT OF PUBLIC SERVICE COMPANY OF COLORADO TERMS WEREN'T DISCLOSED NORTH AMERICAN TECHNOLOGIES GROUP SIGNED A LETTER OF INTENT TO BUILD A PETROLEUM UPGRADING TEST FACILITY FOR ESG PETROLEUM LIMITED IN ALBERTA GLOBAL CASINOS INCORPORATED DALLAS ENTERED A JOINT VENTURE TO OPEN A CASINO IN DOWNTOWN MINSK THE CAPITAL OF BELARUS THE PARTNER WASN'T IDENTIFIED AND TERMS WEREN'T DISCLOSED JASON INCORPORATED MILWAUKEE COMPLETED THE ACQUISITION OF CLOSELY HELD DELTAK CORPORATION A MAKER OF AUTOMOTIVE AND INDUSTRIAL PARTS FOR ABOUT THIRTY MILLION DOLLARS THE COURAGEOUS AND PERHAPS OVERLY OPTIMISTIC CLINTON ADMINISTRATION MEANS TO REINVENT GOVERNMENT IN THE AREA OF BANK REGULATION IT PROPOSES TO CONSOLIDATE THE FOUR BANK AND THRIFT REGULATORY AUTHORITIES INTO ONE INDEPENDENT FEDERAL REGULATORY AGENCY THIS NEW UNIFIED AGENCY WOULD BE GOVERNED BY A FIVE MEMBER BOARD ONE MEMBER FROM THE TREASURY DEPARTMENT ONE FROM THE FEDERAL RESERVE AND THREE INDEPENDENT MEMBERS APPOINTED BY THE PRESIDENT CONFIRMED BY THE SENATE AND MOST IMPORTANT REMOVABLE ONLY FOR CAUSE TODAY AS A RESULT OF HISTORICAL ACCIDENT THE FEDERAL DEPOSIT INSURANCE CORPORATION THE OFFICE OF THE COMPTROLLER OF THE CURRENCY THE OFFICE OF THRIFT SUPERVISION AND THE FEDERAL RESERVE SYSTEM EACH HAVE A PIECE OF THE FEDERAL REGULATORY ACTION THIS BUREAUCRATIC GANG WARFARE CREATES A HIGH COST SYSTEM RIFE WITH DUPLICATION AND DELAY AND CAN FROM TIME TO TIME COME CLOSE TO DESTROYING EFFECTIVE AND EFFICIENT BANK SUPERVISION WHEN THESE AGENCIES DISAGREE NOT THE PRESIDENT OR THE POPE CAN FORCE THEM TO AGREE THERE IS NO PLACE TO GET A FINAL DECISION ON IMPORTANT ISSUES LIKE HOW MUCH CAPITAL BANKS MUST HAVE TO BE SAFE AND SOUND UNDER THE ADMINISTRATION'S NEW PLAN THE TWO AGENCIES WITH PURE REGULATORY POWERS O. T. S. AND O. C. C. WILL GO OUT OF BUSINESS WHILE THE TWO OTHER AGENCIES WILL BE STRIPPED OF SUPERVISORY DUTIES THE F. D. I. C. WOULD CONTINUE TO BE AN INDEPENDENT INSURER AND THE FEDERAL RESERVE WOULD CONTINUE TO INDEPENDENTLY DETERMINE MONETARY POLICY WHO WOULD OPPOSE SUCH A SIMPLE AND LOGICAL PLAN TO IMPROVE THE WAY THE GOVERNMENT GOVERNS THE BANKING INDUSTRY THE ANSWER IS NO SURPRISE THE PRIMARY OPPOSITION COMES FROM THE FEDERAL RESERVE SYSTEM WHICH STANDS TO LOSE THE MOST ADDITIONAL OPPOSITION WILL COME FROM STATE BANK REGULATORS AND THEIR COMMUNITY BANK FRIENDS BECAUSE THEY FEAR NEEDLESSLY I BELIEVE THAT THE STATE AND FEDERAL DUAL BANKING SYSTEM MAY EVENTUALLY BE JEOPARDIZED BY THE REGULATORY WEIGHT OF A SINGLE GIANT FEDERAL AGENCY BUT IN THE END THE FEDERAL RESERVE HOLDS THE KEY TO WHETHER THE ADMINISTRATION'S PLAN SUCCEEDS OR FAILS AND THE FED HAS GONE ALL OUT TO PRESERVE ITS POWERS TO REGULATE HERE'S WHAT OFFICIALS AT THE FED HAVE SAID IN A SERIES OF UNPRECEDENTED OP ED ATTACKS ON THE PRESIDENT'S PLAN QUOTE IF REGULATORY AUTHORITY IS VESTED IN A SINGLE AGENCY AND LITTLE IN THE CENTRAL BANK OUR NATION'S ABILITY TO RESPOND EFFICIENTLY AND EFFECTIVELY TO A CRISIS WOULD SURELY BE IMPAIRED LET US EXAMINE THESE CLAIMS ON THE CHARITABLE ASSUMPTION THAT THEY HAVE ONLY A MINIMAL RELATIONSHIP TO THE OLD POLITICAL ADAGE THAT WHERE YOU SIT IS WHERE YOU STAND MR. GREENSPAN'S STATEMENT TO THE EFFECT THAT SOUND MONETARY POLICY REQUIRES SUPERVISORY AUTHORITY HAS NOT BEEN SUPPORTED BY THE EXPERIENCE OF OTHER CENTRAL BANKS PARTICULARLY THE GERMAN BUNDESBANK WHICH MANY CONSIDER THE PRE EMINENT MONETARY OPERATOR IN EUROPE AND PERHAPS THE WORLD THE BUNDESBANK HAS NO REGULATORY DUTIES NOR DO ABOUT TWO THIRDS OF THE CENTRAL BANKS IN THE COUNTRIES OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT FURTHER WHILE THE BANK OF ENGLAND HAS SUCH AUTHORITY MANY FEEL IT IS UNDESIRABLE BECAUSE THERE IS OFTEN A CONFLICT OF DUTY BETWEEN THE REGULATOR AND THE MONETARY AUTHORITY THERE IS AN OBVIOUS EXAMPLE OF SUCH A CONFLICT WHEN MONETARY POLICY CALLS FOR AN EXPANSION OF BANK CREDIT FOR ECONOMIC EXPANSION BUT REGULATORY RESPONSIBILITY MANDATES RESTRICTION OF LENDING DEEMED TO BE RISKY NOTE THE RECENT CALL IN THE U. S. BY BOTH THE BUSH AND CLINTON ADMINISTRATIONS FOR REGULATORS TO LET UP ON BANKS SO THAT MORE LENDING CAN EXPAND THE ECONOMY WHILE AT THE SAME TIME REGULATORS ARE STILL WORRIED ABOUT THE EFFECTS OF THE BANKING MISTAKES OF THE NINETEEN EIGHTIES WHAT ABOUT THE ARGUMENT THAT THE FED WOULD BE UNABLE TO HANDLE A CRISIS IN THE SYSTEM WITHOUT SUPERVISORY AND REGULATORY AUTHORITY IT IS SAID THAT IT IS TOO RISKY TO COUNT ON EXAMINATION REPORTS PREPARED BY OTHERS BUT UNDER THE ADMINISTRATION'S PROPOSAL THE FEDERAL RESERVE WILL BE PART OF THE REGULATORY AUTHORITY AS A BOARD MEMBER AND NO DOUBT MOST OF ITS CURRENT EXAMINERS WILL TRANSFER TO AND WORK FOR THE NEW CONSOLIDATED AGENCY FURTHER ALL INFORMATION RELATED TO THE ENTIRE BANKING INDUSTRY BY LAW WILL BE INSTANTLY AVAILABLE IN ONE PLACE ON A FULLY COORDINATED BASIS FOR THE FED'S USE SUCH INFORMATION IS NOT AVAILABLE TO THE FED OR ANYONE ELSE TODAY THE NEW SYSTEM WILL PROVIDE BETTER MORE CURRENT AND COMPREHENSIVE INFORMATION ON THE BANKING SYSTEM THAN IS AVAILABLE IN GOVERNMENT TODAY SINCE THE FED NOW SUPERVISES ONLY A SMALL PERCENTAGE OF BANKING ASSETS LESS THAN TWENTY PERCENT ITS INFORMATION BASE WILL BE IMPROVED BY A FACTOR OF FIVE FED OFFICIALS WILL BE ABLE TO TALK TO REGULATORY PERSONNEL FOR AS LONG AND IN AS MUCH DETAIL AS THEY DESIRE WITH REGARD TO THE ARGUMENT THAT TWO OR MORE REGULATORS ARE NECESSARY AS CHECKS AND BALANCES DO WE NEED TWO S. E. C.S OR TWO F. C. C.S FOR BALANCE OR TO PROVIDE REGULATORY SHOPPING THE ANSWER IS NO CLEARLY NO ONE WOULD EVEN SUGGEST SUCH A THING AS A FORMER F. D. I. C. CHAIRMAN AND FORMER CHAIRMAN OF A FEDERAL RESERVE BANK BRANCH I HAVE HAD THE UNUSUAL OPPORTUNITY TO OBSERVE OUR PRESENT REGULATORY SITUATION FROM BOTH SIDES OF THE FENCE BASED ON MY EXPERIENCE IT IS CLEAR TO ME THAT FOR THE GOOD OF THE COUNTRY'S FINANCIAL SYSTEM THE ADMINISTRATION'S PROPOSED PLAN SHOULD BE SUPPORTED WHAT IS NEEDED IS A PLACE TO GET A UNIFORM RAPID AND FINAL DECISION ON IMPORTANT REGULATORY ISSUES NEITHER THE PRESENT SYSTEM NOR A PROPOSED TWO REGULATOR SYSTEM RECENTLY TOSSED OUT BY THE FED WILL PROVIDE THIS ESSENTIAL INGREDIENT OF ANY REAL BANKING REGULATORY REFORM MY FORMER COLLEAGUES AT THE FED AND IN THE F. D. I. C. WILL NO DOUBT FEEL THAT MY JUDGMENT HAS BECOME IMPAIRED SINCE I SERVED THESE TWO FINE INSTITUTIONS BUT I BELIEVE IT REALLY MAY HAVE BEEN IMPROVED BY A VIEW NOT COLORED BY BEING PART OF THE PROBLEM MR. SEIDMAN WHO WAS HEAD OF THE F. D. I. C. FROM NINETEEN EIGHTY FIVE TO NINETEEN NINETY ONE IS CHAIRMAN OF COMMAC INCORPORATED A FINANCIAL SERVICES COMPANY A RECOVERY IN THE BOND MARKET CLEARED THE WAY FOR ANOTHER RECORD SETTING DAY ON WALL STREET AFTER A ONE DAY SLIDE THE DOW JONES INDUSTRIAL AVERAGE BOUNCED BACK GAINING ELEVEN POINT FIVE THREE OR ZERO POINT TWO NINE PERCENT TO THREE THOUSAND NINE HUNDRED SEVENTY FIVE POINT FIVE FOUR LESS THAN THREE POINTS FROM ITS ALL TIME HIGH OF THREE THOUSAND NINE HUNDRED SEVENTY EIGHT POINT THREE SIX AND BACK WITHIN STRIKING DISTANCE OF FOUR THOUSAND BROAD BASED INDEXES WERE EVEN STRONGER SETTING HIGHS IN MANY CASES ADVANCING ISSUES OUTPACED DECLINERS ABOUT ONE THOUSAND TWO HUNDRED SEVENTY NINE TO EIGHT HUNDRED FIFTY ONE ON THE NEW YORK STOCK EXCHANGE VOLUME THERE CLIMBED TO ABOUT THREE HUNDRED TWENTY EIGHT MILLION SEVEN HUNDRED SEVENTY THOUSAND SHARES FROM THREE HUNDRED TWENTY TWO MILLION FOUR HUNDRED FORTY THOUSAND TUESDAY THE AVERAGE PRICE PER SHARE ROSE SEVENTEEN CENTS THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX INCREASED TWO POINT THREE EIGHT OR ZERO POINT FIVE ZERO PERCENT TO FOUR HUNDRED EIGHTY TWO POINT OH OH THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE ONE POINT TWO SEVEN OR ZERO POINT FOUR EIGHT PERCENT TO TWO HUNDRED SIXTY SEVEN POINT SEVEN ONE AND THE DOW JONES EQUITY MARKET INDEX ADDED TWO POINT OH SEVEN OR ZERO POINT FOUR SIX PERCENT TO FOUR HUNDRED FIFTY SIX POINT TWO SEVEN ALL THREE CLOSED AT RECORD LEVELS THE NASDAQ COMPOSITE INDEX CLIMBED TWO POINT THREE THREE OR ZERO POINT TWO NINE PERCENT TO SEVEN HUNDRED NINETY NINE POINT FIVE SEVEN LESS THAN A POINT FROM ITS ALL TIME HIGH THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADVANCED ONE POINT NINE OH OR ZERO POINT THREE NINE PERCENT TO FOUR HUNDRED EIGHTY SEVEN POINT EIGHT NINE A THIRD STRAIGHT RECORD ECONOMICALLY SENSITIVE STOCKS AMONG THE STRONGEST MARKET SEGMENTS FOR WEEKS WERE JOINED IN THE LEADERSHIP POSITION YESTERDAY BY OIL RELATED ISSUES BIG GAINERS INCLUDED UNION CARBIDE WHICH ROSE ONE AND ONE EIGHTH TO TWENTY FIVE AND THREE QUARTERS TEXACO WHICH RALLIED ONE AND ONE QUARTER TO SIXTY SEVEN AND THREE QUARTERS AND BAKER HUGHES WHICH JUMPED ONE AND ONE QUARTER TO TWENTY ONE AND ONE QUARTER SEARS ROEBUCK TUMBLED TWO AND ONE HALF TO FIFTY ONE AND ONE QUARTER AS SIX POINT NINE MILLION OF ITS SHARES CHANGED HANDS LEADING BIG BOARD VOLUME PRUDENTIAL SECURITIES DOWNGRADED THE BIG CHICAGO RETAILER TO QUOTE HOLD QUOTE FROM QUOTE BUY QUOTE AMGEN NASDAQ SLUMPED THREE TO FORTY FOUR AFTER THE COMPANY TOLD ANALYSTS THAT SALES GROWTH FOR ITS NEUPOGEN DRUG LIKELY WILL EASE THIS YEAR RUMORS ABOUT A SLOWDOWN HAVE BATTERED THE STOCK ALL WEEK THE THOUSAND OAKS CALIFORNIA COMPANY'S STOCK ENDED AT FORTY NINE AND THREE QUARTERS ON FRIDAY THE DRUG IS USED TO CONTROL INFECTIONS IN PATIENTS UNDERGOING CANCER CHEMOTHERAPY PARAMOUNT COMMUNICATIONS LOST ONE AND SEVEN EIGHTHS TO SEVENTY EIGHT SOME INVESTORS WERE SAID TO BE DISAPPOINTED THAT VIACOM AND Q. V. C. NETWORK WEREN'T MORE AGGRESSIVE LATE TUESDAY WHEN THEY SWEETENED THEIR BIDS FOR THE NEW YORK MEDIA COMPANY ALTHOUGH THE TWO OFFERS CARRY ROUGHLY THE SAME VALUE INVESTORS YESTERDAY GAVE VIACOM AN EDGE IN THE TAKEOVER BATTLE CITING PROVISIONS IN ITS PROPOSAL THAT PROTECT INVESTORS FROM A POTENTIAL SLIDE IN ITS STOCK PRICE VIACOM'S CLASS B. STOCK AMEX LOST FIVE EIGHTHS TO THIRTY THREE AND ONE HALF Q. V. C. NASDAQ ADDED TWO TO FORTY SIX AND THREE QUARTERS BLOCKBUSTER ENTERTAINMENT WHICH IS BACKING VIACOM LOST THREE QUARTERS TO TWENTY SIX AND SEVEN EIGHTHS BELLSOUTH WHICH IS AIDING Q. V. C. DROPPED THREE QUARTERS TO FIFTY NINE POLAROID DROPPED ONE AND THREE EIGHTHS TO THIRTY THREE AND FIVE EIGHTHS ALTHOUGH THE CAMBRIDGE MASSACHUSETTS CAMERA MAKER REPORTED STRONG FOURTH QUARTER EARNINGS TUESDAY ANALYSTS YESTERDAY CAUTIONED THAT THE COMPANY'S EARNINGS COULD BE DEPRESSED EARLY THIS YEAR EMPRESAS LA MODERNA JUMPED TO THIRTY FIVE AND THREE QUARTERS IN ITS FIRST DAY OF TRADING ON VOLUME OF FOUR POINT TWO MILLION SHARES THE BIG MEXICAN CIGARETTE PRODUCER HAD AN INITIAL OFFERING OF FIVE POINT THREE MILLION AMERICAN DEPOSITARY SHARES PRICED AT THIRTY TWO DOLLARS AND FIFTY THREE CENTS APIECE SPRINT ADDED ONE AND FIVE EIGHTHS TO THIRTY SEVEN AND ONE EIGHTH THE KANSAS CITY MISSOURI TELEPHONE SERVICE PROVIDER REPORTED FOURTH QUARTER EARNINGS OF FIFTY FIVE CENTS A SHARE COMPARED WITH INCOME FROM OPERATIONS OF THIRTY FOUR CENTS A YEAR EARLIER GENERAL ELECTRIC SHARES INCREASED TWO AND ONE QUARTER TO ONE HUNDRED NINE AND ONE EIGHTH OFFICIALS OF THE DIVERSIFIED FAIRFIELD CONNECTICUT COMPANY COULDN'T ACCOUNT FOR THE RISE SHARES OF PRECIOUS METALS PRODUCERS EASED AFTER SURGING TUESDAY AMERICAN BARRICK FELL ONE TO TWENTY SEVEN AND FIVE EIGHTHS HOMESTAKE MINING DROPPED ONE AND THREE EIGHTHS TO TWENTY ONE AND SEVEN EIGHTHS NEWMONT MINING DECLINED ONE TO FIFTY FOUR AND ONE HALF AND ECHO BAY MINES AMEX SLIPPED THREE EIGHTHS TO THIRTEEN AND THREE EIGHTHS U. S. F. AND G. ROSE ONE AND ONE HALF TO FIFTEEN AND THREE EIGHTHS THE BALTIMORE INSURANCE COMPANY REPORTED FOURTH QUARTER EARNINGS OF FIFTY FIVE CENTS A SHARE UP FROM ONE CENT A YEAR EARLIER THE LATEST PERIOD INCLUDED A GAIN FROM A TAX BENEFIT FLIGHTSAFETY CLIMBED FOUR AND ONE HALF TO THIRTY NINE AND ONE QUARTER THE NEW YORK COMPANY WHICH PROVIDES TRAINING TO PILOTS HAD A PROFIT OF SIXTY ONE CENTS A SHARE IN THE FOURTH QUARTER UP FROM FIFTY TWO CENTS A YEAR EARLIER ANALYSTS SAID INVESTORS IN PART WERE ENCOURAGED BY THE MARKET'S RELATIVELY MINOR LOSSES IN THE FACE OF BAD NEWS TUESDAY INCLUDING THE BOND SLUMP AND A JUMP IN COMMODITIES PRICES THE DOW WAS OFF JUST FOURTEEN POINT THREE FIVE YESTERDAY AFTER SURGING SEVENTY POINTS IN THE PREVIOUS THREE TRADING DAYS I THINK INVESTORS CAME IN WITH SOME CONFIDENCE YESTERDAY THAT THE REAL TREND IN STOCKS IS UP SAID RICHARD SCARLATTA A NEWSLETTER EDITOR AT SUTTON FINANCIAL SERVICES IN CHICAGO MANY BIG INVESTORS STILL HAVE MONEY TO SPEND SAID RICKY HARRINGTON A TECHNICAL ANALYST AT INTERSTATE JOHNSON LANE INFLOWS TO EQUITY MUTUAL FUNDS WERE AT A RECORD LEVEL IN DECEMBER AND FUND EXECUTIVES HAVE PROJECTED PERHAPS EVEN LARGER INFLOWS FOR JANUARY THESE DAYS EVIL WOULD SEEM TO BE ROOTED IN QUANGOS QUOTE PEERS ATTACK QUANGO CULTURE QUOTE BLARED ONE RECENT HEADLINE HERE REDWOOD ACCUSED IN QUANGO SCANDAL SAID ANOTHER A DAILY TELEGRAPH ARTICLE ON THE DIFFICULTY OF KILLING QUANGOS LIKENED THEM TO THE HYDRA YOU CUT OFF THE HEAD OF ONE AND ANOTHER NINE GROW IN ITS PLACE INDEED THE NATION ABOUNDS WITH WARNINGS OF QUANGO PROLIFERATION QUANGOS ACRONYM FOR QUASI AUTONOMOUS NON GOVERNMENTAL ORGANIZATIONS ARE PUBLIC BODIES CHARGED WITH OVERSIGHT OR IMPLEMENTATION OF A PARTICULAR ASSIGNMENT NATIONWIDE THERE ARE AN ESTIMATED ONE THOUSAND FIVE HUNDRED OF THEM THE SENSE THAT THEIR NUMBERS ARE GROWING NO ONE REALLY KNOWS FOR SURE IS PROMPTING MANY TO CALL FOR THE RETURN TO PARLIAMENT OF SIR PHILIP HOLLAND AUTHOR OF QUELLING THE QUANGO AND QUANGO QUANGO QUANGO BEFORE RETIRING IN NINETEEN EIGHTY SEVEN AS BRITAIN'S GREATEST EVER QUANGO HUNTER HE ELIMINATED MORE THAN THREE HUNDRED OF THEM I DEPLORE THE EXISTENCE OF QUANGOS SAYS SIR PHILIP BUT GOVERNMENT OFFICIALS KEEP CREATING NEW ONES EACH WITH ITS OWN NAME THE HOME GROWN CEREALS AUTHORITY THE ADVISORY COMMITTEE ON SCOTLAND'S TRAVELLING PEOPLE THE ADVISORY PANEL ON THE IMPORTATION OF SEXUALLY EXPLICIT FILMS FOR HEALTH PURPOSES SUPPORTERS SAY COMMITTEE MEMBERS PERFORM VITAL FUNCTIONS OFTEN FOR LITTLE OR NO PAY IN A HOUSE OF LORDS DEBATE LAST MONTH ON QUANGOS BARONESS MILLER OF HENDON SAID HER WORK ON A FAMILY HEALTH COMMITTEE PAID LESS THAN SHE PAID HER CLEANING LADY YET MANY QUANGO EXECUTIVES RECEIVE MUCH MORE THAN THAT AS MUCH AS SEVENTY THOUSAND POUNDS ONE HUNDRED FIVE THOUSAND DOLLARS A YEAR IN POSITIONS THAT ARE APPOINTED RATHER THAN ELECTED THE QUANGOCRACY IS A SYSTEM OF POLITICAL PATRONAGE SAYS SIR PHILIP NOTING THAT CERTAIN QUANGURUS AS HE CALLS THEM TEND TO LAND ONE QUANGO JOB AFTER ANOTHER IN HIS NEARLY TWENTY YEARS IN PARLIAMENT SIR PHILIP KILLED SUCH QUANGOS AS THE LOCATION OF OFFICES BUREAU THE FURNITURE DEVELOPMENT COUNCIL AND THE ADVISORY COMMITTEE ON RHODESIAN TRAVEL RESTRICTIONS BUT HE SAYS HE HAS FAILED TO PERSUADE ANY NEW MEMBER OF PARLIAMENT TO TAKE UP THE CAUSE AND LITTLE WONDER DURING THE RECENT HOUSE OF LORDS DEBATE CRITICS WHEN PRESSED ADMITTED THAT EVEN THEY SERVED ON SOME QUANGOS ALLIEDSIGNAL INCORPORATED SAID IT REACHED A PRELIMINARY AGREEMENT TO BUY THE FLUOROCHEMICALS BUSINESS OF AKZO CHEMICALS B. V. OF THE NETHERLANDS TERMS WEREN'T DISCLOSED BUT A SPOKESMAN FOR ALLIEDSIGNAL BASED IN MORRISTOWN N. J. SAID SALES OF THE AKZO FLUOROCHEMICALS BUSINESS SHOULD TOTAL ABOUT EIGHTEEN MILLION DOLLARS IN NINETEEN NINETY FOUR AKZO CHEMICALS IS A UNIT OF AKZO N. V. THE AKZO BUSINESS MAKES HYDROFLUORIC ACID THE KEY RAW MATERIAL IN FLUOROCARBONS USED IN REFRIGERATION AND FOAM INSULATION AMONG OTHER THINGS THE AGREEMENT CALLS FOR ALLIEDSIGNAL TO BUY AKZO'S MANUFACTURING PLANTS IN WEERT THE NETHERLANDS WHICH EMPLOY ABOUT SEVENTY PEOPLE ALLIEDSIGNAL HAS AEROSPACE AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS INTERESTS AKZO'S PRODUCTS INCLUDE CHEMICALS FIBERS COATINGS AND HEALTH CARE PRODUCTS P. H. H. CORPORATION EXPECTS SLOWER EARNINGS GROWTH IN THE SECOND HALF OF ITS FISCAL YEAR ENDING APRIL THIRTIETH THAN OCCURRED IN THE FIRST HALF BUT NET INCOME FOR THE YEAR WILL RISE TO ABOUT THREE DOLLARS AND SIXTY FIVE CENTS TO THREE DOLLARS AND SEVENTY CENTS A SHARE SAID ROY A. MEIERHENRY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IN FISCAL NINETEEN NINETY THREE THE VEHICLE LEASING MORTGAGE BANKING AND RELOCATION SERVICES COMPANY EARNED FIFTY SIX POINT FOUR MILLION DOLLARS OR THREE DOLLARS AND TWENTY FIVE CENTS A SHARE ON REVENUE OF TWO POINT OH TWO BILLION DOLLARS BECAUSE OF A SURGE IN MORTGAGE REFINANCINGS PER SHARE PROFIT FOR THE SIX MONTHS ENDED OCTOBER THIRTY FIRST JUMPED TO ONE DOLLAR AND SEVENTY FOUR CENTS FROM ONE DOLLAR AND FORTY SEVEN CENTS A YEAR EARLIER THE HUNT VALLEY MARYLAND COMPANY'S MORTGAGE BANKING BUSINESS WILL PRODUCE MOST OF THE EARNINGS GAIN FOR FISCAL NINETEEN NINETY FOUR MR. MEIERHENRY SAID IN AN INTERVIEW VEHICLE LEASING WILL ALSO HAVE HIGHER EARNINGS HE SAID BUT EARNINGS FROM RELOCATION SERVICES WILL BE QUOTE FLAT TO DOWN QUOTE PRESIDENT CLINTON'S NEW BUDGET CALLS FOR DEEP AND CONTROVERSIAL CUTS IN SCORES OF FEDERAL PROGRAMS AND ELIMINATING MORE THAN ONE HUNDRED OTHERS RANGING FROM COAST GUARD BOAT SAFETY GRANTS TO THE COMMERCE DEPARTMENT'S NATIONAL UNDERSEA RESEARCH PROGRAM ADMINISTRATION OFFICIALS SAID IN THE BUDGET TO BE RELEASED MONDAY MR. CLINTON WILL PROPOSE SHARP CUTS IN NEXT YEAR'S SPENDING FOR PUBLIC HOUSING ARMY CORPS OF ENGINEERS CONSTRUCTION PROJECTS RURAL ELECTRIFICATION ADMINISTRATION LOAN SUBSIDIES OPERATING SUBSIDIES FOR LOCAL TRANSIT SYSTEMS AND AID TO HELP POOR PEOPLE PAY HEATING BILLS OFFICIALS SAID FORCED BY CONGRESS TO LIVE WITH TIGHT CAPS ON ANNUALLY APPROPRIATED SPENDING MR. CLINTON HAD TO IDENTIFY TENS OF BILLIONS OF DOLLARS IN SPENDING CUTS TO MAKE ROOM FOR INCREASED SPENDING ON PRIORITIES SUCH AS THE HEADSTART PROGRAM FOR PRESCHOOLERS WORKER TRAINING HIGHWAY CONSTRUCTION AND PROGRAMS FOR THE HOMELESS CLINTON ADMINISTRATION OFFICIALS ARE NOW CALLING ATTENTION TO SOME OF THE CUTS TO DEMONSTRATE THAT THE PRESIDENT MADE SOME HARD CHOICES THE PRESIDENT WILL ALSO ASK CONGRESS TO RESCIND ABOUT FIVE BILLION DOLLARS OR SLIGHTLY LESS THAN ONE PERCENT OF THE SPENDING IT APPROVED FOR THE CURRENT FISCAL YEAR INCLUDING MONEY FOR LOCAL HIGHWAY PROJECTS THAT REFLECT THE CLOUT OF PARTICULAR CONGRESSMEN AT THE SAME TIME THE PRESIDENT ALREADY HAS ASKED FOR TEN POINT FIVE BILLION DOLLARS IN ADDED SPENDING FOR CALIFORNIA EARTHQUAKE VICTIMS AND PENTAGON PEACEKEEPING EFFORTS USING LAST YEAR'S APPROPRIATIONS AS A BASE MR. CLINTON'S BUDGET WILL SEEK TO SPEND FOUR HUNDRED FORTY EIGHT MILLION DOLLARS OR SEVENTY FOUR PERCENT LESS ON PUBLIC HOUSING DEVELOPMENT AND TWO HUNDRED SEVENTY FIVE MILLION DOLLARS OR TWENTY PERCENT LESS ON WHAT ARE CALLED HOME GRANTS TO STATE AND LOCAL GOVERNMENTS FOR CONSTRUCTION REHABILITATION AND RENTAL ASSISTANCE A PROGRAM MR. CLINTON SOUGHT TO INCREASE LAST YEAR THE CUTS ARE SMALLER THAN THOSE INITIALLY CONTEMPLATED BY THE ADMINISTRATION AND DON'T AFFECT BILLIONS OF DOLLARS ALREADY IN THE PIPELINE BUT REFLECT A DECISION THAT PUBLIC HOUSING CONSTRUCTION ISN'T ONE OF MR. CLINTON'S PRIORITIES MR. CLINTON ALSO PROPOSES TO SPEND FIFTY ONE MILLION DOLLARS OR SEVENTY PERCENT LESS ON REA LOAN SUBSIDIES THREE HUNDRED FORTY FIVE MILLION DOLLARS OR TWENTY FIVE PERCENT LESS ON ARMY CORPS OF ENGINEERS CONSTRUCTION PROJECTS EIGHTY FIVE MILLION DOLLARS OR SEVENTY PERCENT LESS ON THE NEXT GENERATION WEATHER RADAR PROJECT WHICH IS TO PROVIDE EARLIER WARNINGS OF TORNADOS AND HURRICANES AND THIRTEEN MILLION DOLLARS OR FOUR PERCENT LESS ON PUBLIC BROADCASTING ENERGY DEPARTMENT SPENDING TO PRODUCE AND STOCKPILE NUCLEAR MATERIALS ALSO IS SLATED FOR BIG CUTS THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION IS ANOTHER LOSER IN THE CLINTON BUDGET THE PRESIDENT WILL PROPOSE SPENDING TWO HUNDRED THIRTY MILLION DOLLARS LESS A SMALL CUT FROM LAST YEAR BUT IF APPROVED BY CONGRESS IT WOULD BE THE FIRST REDUCTION FOR NASA IN TWENTY ONE YEARS AMONG THE PROGRAMS THAT MR. CLINTON WILL SEEK TO TERMINATE ALTOGETHER ARE AID TO PUBLIC SCHOOLS WITH DEPENDENTS OF MILITARY PERSONNEL FOR WHICH CONGRESS APPROPRIATED ONE HUNDRED TWENTY THREE MILLION DOLLARS LAST YEAR FEDERAL CONTRIBUTIONS TO PERKINS REVOLVING LOAN FUNDS WHICH PROVIDE LOW INTEREST STUDENT LOANS ONE HUNDRED FIFTY EIGHT MILLION DOLLARS AND THE ENERGY DEPARTMENT'S ATOMIC VAPOR LASER ISOTOPE SEPARATION PROGRAM TO DEVELOP NEW TECHNIQUES FOR ENRICHING URANIUM ONE HUNDRED SEVENTY SEVEN MILLION DOLLARS A PROGRAM DEEMED OBSOLETE BECAUSE SO MUCH RUSSIAN URANIUM IS NOW AVAILABLE MR. CLINTON ALSO SEEKS TO CLOSE THE PENTAGON'S MEDICAL SCHOOL A RECOMMENDATION FROM VICE PRESIDENT AL GORE'S REPORT ON QUOTE REINVENTING GOVERNMENT QUOTE SMALLER PROGRAMS THAT MR. CLINTON WOULD ELIMINATE INCLUDE SMALL BUSINESS ASSOCIATION GRANTS FOR TREE PLANTING THE FEDERAL RAILROAD ADMINISTRATION'S LOCAL RAIL FREIGHT ASSISTANCE THE COMMERCE DEPARTMENT'S COLUMBIA RIVER HATCHERIES AND ITS WIND PROFILER DEMONSTRATION NETWORK A FIFTY MILLION DOLLAR ANNUAL EXPORT SUBSIDY FOR SUNFLOWER AND COTTONSEED OIL AND A PROGRAM THAT PAYS LAW STUDENTS TO WORK IN CLINICS FOR THE POOR THE BUDGET PROJECTS THAT THE NUMBER OF CIVILIAN WORKERS MEASURED IN FULL TIME EQUIVALENTS ON THE FEDERAL PAYROLL WILL BE ONE HUNDRED EIGHTEEN THOUSAND LOWER BY SEPTEMBER THIRTIETH NINETEEN NINETY FIVE THAN WHEN MR. CLINTON TOOK OFFICE THE SAVINGS ARE USED TO COMPLY WITH THE SPENDING CAPS SET BY CONGRESS IN LAST YEAR'S DEFICIT REDUCTION LAW MR. CLINTON VOWS TO ELIMINATE AN ADDITIONAL ONE HUNDRED THIRTY FOUR THOUSAND SLOTS BY THE END OF THE DECADE THE BUDGET LAW LIMITS MR. CLINTON'S TOTAL REQUEST FOR CONGRESSIONAL APPROPRIATIONS BOTH FOR DEFENSE AND NONDEFENSE PROGRAMS TO FIVE HUNDRED SEVENTEEN BILLION DOLLARS FOR FISCAL NINETEEN NINETY FIVE WHICH BEGINS OCTOBER FIRST OR ROUGHLY THE SAME AS IN NINETEEN NINETY FOUR THE LAW NO LONGER SETS SEPARATE FLOORS FOR DEFENSE SPENDING BUT SENATE ARMED SERVICES CHAIRMAN SAM NUNN D. GEORGIA SAID YESTERDAY THAT HE AND SENATOR PETE DOMENICI R. N. M. WILL AGAIN SEEK TO REIMPOSE THE SEPARATE LIMITS DEFENSE SECRETARY DESIGNATE WILLIAM PERRY SAID AT HIS CONFIRMATION HEARING YESTERDAY THAT THE DEFENSE BUDGET THAT WILL BE UNVEILED NEXT WEEK MAKES SUBSTANTIAL TRADEOFFS BETWEEN READINESS AND PROCUREMENT WITH THE LOSER BEING PROCUREMENT OR MODERNIZATION OF EQUIPMENT EVEN THOUGH WE HAVE A SMALLER FORCE PROJECTED FOR NINETY FIVE THAN FOR NINETY FOUR HE SAID WE HAVE ASKED FOR SUBSTANTIALLY GREATER FUNDS FOR THE OPERATION AND MAINTENANCE ACCOUNT THE ACCOUNT WHICH IS THE PRINCIPAL DRIVER OF NEAR TERM READINESS IN SEARCH OF THE NEXT HOME DEPOT NEW NICHE IDEAS TEST THE SUPERSTORE FORMAT QUOTE WE'RE COMING TO THE END OF THE OBVIOUS SUPERSTORE QUOTE IDEAS WITH CLEARLY LARGE MARKETS SAYS LLOYD D. RUTH OF MARQUETTE VENTURE PARTNERS IN DEERFIELD ILLINOIS NEVERTHELESS HE IS PUTTING MONEY ON LIL THINGS A STORE FOR BABIES AND SMALL CHILDREN THE THREE NEW LIL THINGS STORES IN DALLAS BOAST HAIR SALONS AND PORTRAIT SHOPS AS WELL AS TOGS TOYS AND FURNITURE IN AUSTIN TEXAS GARY HOOVER A BOOK SUPERSTORE PIONEER PLANS A SHOPPING MECCA FOR TRAVELERS TRAVELFEST SUPERSTORES WILL SELL TRAVEL GEAR SUCH AS LUGGAGE AS WELL AS SERVICES LIKE FARE AND TOUR BOOKINGS MEANWHILE CHICAGO'S REITERS INCORPORATED THIS WEEK OPENED A SEVEN THOUSAND FIVE HUNDRED SQUARE FOOT STORE JUST FOR CUSTOM AND READY MADE WINDOW COVERINGS THERE'S ROOM FOR A CATEGORY KILLER IN THIS AREA SAYS GEORGE ROSENBAUM A CHICAGO CONSULTANT BUT HOW WILL SUPERSTORES FARE WITH THE DAWN OF ELECTRONIC SHOPPING THEY HAVE THE SOURCING EXPERTISE AND THE COMPUTER AND DISTRIBUTION SYSTEMS TO MAKE THE SHIFT SAYS R. FULTON MACDONALD A NEW YORK RETAIL CONSULTANT MANY STILL SAY IT WITH FLOWERS BUT OFFBEAT VALENTINE'S DAY GESTURES ABOUND THE ARLINGTON PARK HILTON IN ILLINOIS TOUTS A TWENTY SIX THOUSAND TWO HUNDRED DOLLAR SAFARI PACKAGE THAT INCLUDES A WEEKEND IN A PALM BEDECKED SAFARI SUITE AND A JEEP CHEROKEE TO TAKE HOME COUPLES WHO PREFER INNER EXPLORATION CAN SAMPLE A GETAWAY AT SEATTLE'S MAYFLOWER PARK HOTEL COMPLETE WITH CHAMPAGNE BUBBLE BATH AND A RELATIONSHIP SEMINAR IS A LOVE NOTE PEDESTRIAN VALENTINE MAILING IN JAMAICA N. Y. WILL POST YOUR CARD FROM PARIS THE COST OF CONTINENTAL CACHET FIFTEEN DOLLARS MEANWHILE THE AMERICAN BAT CONSERVATION SOCIETY ROCKVILLE MARYLAND SUGGESTS BAT BITES TINY CHOCOLATE BAT SCULPTURES THE GROUP IS TRYING TO MAKE THE CREATURES INTO VALENTINE ICONS TO DRIVE HOME THE MESSAGE THAT THEY ARE ADORABLE AND LOVABLE IN THE WORDS OF TOM VALLEGA PRESIDENT AND ROWE MANSE EMPORIUM CLIFTON N. J. URGES SERIOUS CHOCOHOLICS TO BRUSH UP ON ROMANCE WITH A JAR OF CHOCOLATE BODY PAINT CALIFORNIA HO MOVERS SAY GETTING THERE MAY BE EVEN CHEAPER THIS SUMMER ANTICIPATING A BIGGER THAN USUAL SPIKE IN DEMAND THIS SUMMER FOR MOVING SERVICES OUT OF QUAKE DAMAGED LOS ANGELES AND THE STATE SOME MOVERS EXPECT TO CUT PRICES FOR INBOUND MOVES TO GET MORE TRUCKS INTO THE AREA QUOTE WE'LL BE OUT THERE FIGHTING TO GET YOUR BUSINESS TO GET TRUCKS GOING QUOTE TO CALIFORNIA SAYS JAMES WILSON OF UNITED VAN LINES IN SAINT LOUIS FOR MOVES FROM SOME STATES HE EXPECTS DISCOUNTS OF FIFTEEN PERCENT TO FIFTY PERCENT THIS SUMMER MEANWHILE RYDER SYSTEMS MIAMI HAS ALREADY CUT RENTAL PRICES FOR TRUCKS GOING TO CALIFORNIA UP TO FIFTEEN PERCENT TO MEET DEMAND IN THE QUAKE'S AFTERMATH THE PRICEY ALTERNATIVE DRIVING OR SENDING EMPTY TRUCKS BY RAIL TO THE STATE IN THE PAST TWO SUMMERS ALLIED VAN LINES CHICAGO HAULED APPLIANCES TO CALIFORNIA RETAILERS TO BOLSTER ITS SUPPLY OF VANS IN THE STATE BUT SINCE IT IS THE SLOW SEASON RIGHT NOW ALLIED DOESN'T HAVE TO RESORT TO SUCH TACTICS DESPITE THE JUMP IN LOS ANGELES BUSINESS ALLIED CURRENTLY HAS ENOUGH VANS IN THE STATE TO MEET DEMAND A SPOKESWOMAN SAID RUSHDIE IS REMEMBERED THIS VALENTINE'S DAY THE FIFTH ANNIVERSARY OF THE ISLAMIC DEATH EDICT ON THE WRITER ABOUT FOUR THOUSAND BOOKSTORES WILL INSERT A PAMPHLET ON SALMAN RUSHDIE'S PLIGHT IN ALL BOOKS SOLD CHAT NOW DEAL LATER FORRESTER RESEARCH A CAMBRIDGE MASSACHUSETTS TECHNOLOGY RESOURCE FIRM ESTIMATES THAT THE COMMERCIAL ON LINE COMPUTER SERVICE MARKET WILL GROW TO A THREE BILLION DOLLAR INDUSTRY BY NINETEEN NINETY EIGHT UP FROM TODAY'S FIVE HUNDRED THIRTY MILLION DOLLARS AS USERS MOVE BEYOND TALK AND DATA SHARING TO BUYING GOODS AND SERVICES THE ART OF LENDING IS PRACTICED BY THE WHITNEY MUSEUM OF AMERICAN ART WHICH WILL SEND THE SAN JOSE MUSEUM OF ART HUNDREDS OF WORKS FOR FOUR LONG TERM EXHIBITS OVER SEVEN YEARS IN TURN THE NEW YORK MUSEUM WILL GET THREE MILLION DOLLARS FROM SAN JOSE'S REDEVELOPMENT AGENCY SCREENING FOR P. C. SMARTS FIRMS UPDATE TESTS FOR SECRETARIAL APPLICANTS COMPANIES ARE CHANGING THEIR TESTS TO KEEP UP WITH HOW COMPUTERS HAVE ALTERED SECRETARIAL WORK AVNET COMPANY GREAT NECK N. Y. DITCHED ITS ELECTRIC TYPING TEST THREE YEARS AGO AFTER COMPLAINTS FROM APPLICANTS THAT IT DIDN'T REPLICATE REALITY SAYS BOB ZIERK VICE PRESIDENT IT NOW USES A THREE HUNDRED NINETY DOLLAR SOFTWARE PROGRAM TO GAUGE WORDPERFECT SKILLS FROM COMPOSING LETTERS TO CLEANING UP A DRAFT STATE FARM MUTUAL AUTOMOBILE ALSO RESORTS TO READY MADE SOFTWARE BUT JUST FOR TYPING SKILLS SINCE THE INSURER USES MANY PROGRAMS YOU BRING IN SOMEBODY WITH BASIC KEYBOARD SKILLS AND THEN TRAIN THEM ON A PARTICULAR WORD PROCESSOR A SPOKESMAN SAYS DETROIT EDISON WAITS FOR TESTS BEING DEVISED JUST FOR UTILITIES BY THE EDISON ELECTRIC INSTITUTE A TRADE GROUP THIS WAY THE COMPANY REDUCES CONCERNS THAT AN APPLICANT HAS HAD THE SAME TEST ELSEWHERE CHARLES SCHWAB THE DISCOUNT BROKER DISPENSES WITH TESTS PREFERRING EXTENSIVE REFERENCE CHECKS YOU CAN TEACH COMPUTER SKILLS A SPOKESMAN SAYS BRIEFS NEW YORK UNIVERSITY PRESS PUBLISHES THE GAY LESBIAN AND BISEXUAL STUDENTS' GUIDE TO COLLEGES UNIVERSITIES AND GRADUATE SCHOOLS MORTAL COMBAT IN A PLAY FOR THE VIDEO GAME GENERATION PRINCE SPORTS GROUP INCORPORATED WILL GIVE AWAY TWO HUNDRED TENNIS RACKETS IN EXCHANGE FOR VIDEO GAME CARTRIDGES IN ATLANTA THIS SATURDAY FOR YEARS FLOATING RATE TREASURY SECURITIES HAVE BEEN ON THE WISH LIST OF WALL STREET AND YESTERDAY THAT WISH CAME ONE STEP CLOSER TO REALITY THE TREASURY DEPARTMENT SAID IT IS STUDYING A PROPOSAL TO OFFER A FLOATING RATE NOTE WHICH COULD ATTRACT NEW INVESTORS PRESENTLY ALL TREASURY SECURITIES ARE SOLD AT A FIXED RATE OF INTEREST ACCORDING TO A DRAFT DOCUMENT OF THE PROPOSED TERMS FOR A FLOATING RATE NOTE THE TREASURY IS CONSIDERING A NOTE WITH A FIVE TO SEVEN YEAR MATURITY THAT WOULD BE QUOTE SUBJECT TO EARLY CALL OR REDEMPTION QUOTE THE NOTE WOULD BE INDEXED TO THE PER ANNUM AVERAGE BOND EQUIVALENT RATE FOR THIRTEEN WEEK TREASURY BILLS THE TREASURY SAID THE FACT THAT IT IS STUDYING THE ISSUE WHICH WAS PROPOSED BY ITS PRIVATE SECTOR ADVISORY COMMITTEE LAST JUNE ISN'T NECESSARILY AN INDICATION THAT IT FEELS THE NOTES MIGHT BE A GOOD IDEA WE HAVE NO PLANS TO CHANGE THE CURRENT REGULAR ISSUE CYCLES AND WE HAVE NO BIAS AS TO WHETHER OR NOT THE FLOATING RATE NOTES WOULD BE A VIABLE OPTION FOR US SAID DARCY BRADBURY DEPUTY ASSISTANT SECRETARY FOR FEDERAL FINANCE ISSUING FLOATING RATE DEBT WOULD SUBJECT THE GOVERNMENT TO THE VAGARIES OF SHIFTING INTEREST RATES A SHARP RISE IN SHORT TERM INTEREST RATES TO WHICH THE FLOATING RATE NOTES WOULD BE INDEXED COULD MAKE THEM MORE EXPENSIVE FOR THE GOVERNMENT THAN FIXED RATE NOTES BUT CAMPBELL HARVEY A PROPONENT OF THE PROPOSAL AND A PROFESSOR OF FINANCE AT THE FUQUA SCHOOL OF BUSINESS AT DUKE UNIVERSITY THINKS OTHERWISE GIVEN THE BIG GAP BETWEEN SHORT TERM AND LONG TERM INTEREST RATES SHORT TERM RATES COULD GO UP AND FLOATING RATE DEBT WOULD STILL BE CHEAPER THAN FIXED LONG TERM DEBT HE SAID LET'S SAY THE GOVERNMENT SELLS FLOATING RATE FIVE YEAR NOTES SAID MR. HARVEY IF THE INTEREST RATE IS PEGGED TO THE THIRTEEN WEEK TREASURY BILL IT WOULD BE ABOUT THREE POINT ONE TWO PERCENT AS OF YESTERDAY HE EXPLAINED SINCE FIXED RATE FIVE YEAR NOTES YIELDED FIVE POINT OH EIGHT PERCENT YESTERDAY THE TREASURY WOULD BE SAVING INTEREST COSTS AS LONG AS THE BILL RATES DIDN'T RISE ABOVE THE FIVE YEAR NOTE RATES AND EVEN IF BILL RATES DID RISE ABOVE THE FIVE YEAR NOTE RATES AT SOME POINT SAID MR. HARVEY THEY WOULD HAVE TO RISE VERY QUICKLY AND VERY FAR FOR FLOATING RATE NOTES TO BECOME MORE EXPENSIVE IN TERMS OF INTEREST COSTS LET'S SAY BILL RATES RISE ABOVE THE FIVE YEAR RATE IN THE FOURTH YEAR HE SAID QUOTE THE GOVERNMENT WOULD HAVE SAVED MONEY OVER THOSE FOUR YEARS QUOTE OF COURSE ROSY PREDICTIONS OF INTERESTRATE SAVINGS DEPEND ON THE PATH OF INTEREST RATES IN THE FUTURE WHICH EVEN MANY OF THE NATION'S TOP ECONOMISTS WERE UNABLE TO PREDICT CORRECTLY LAST YEAR IN MARKET ACTIVITY THE BENCHMARK THIRTY YEAR TREASURY BOND YIELD DROPPED TO SIX POINT TWO EIGHT PERCENT FROM SIX POINT THREE ONE PERCENT ON TUESDAY THE PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF THE YIELD ROSE ONE HALF POINT OR FIVE DOLLARS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY NINE AND SEVENTEEN THIRTY SECONDS MEANWHILE THE REPUBLIC OF CHINA SOLD ONE BILLION DOLLARS OF TEN YEAR GLOBAL NOTES IT WAS THE NATION'S FIRST GLOBAL NOTE OFFERING AND WILL LIKELY SERVE AS A BENCHMARK FOR FUTURE DEBT ISSUES FROM CHINA GLOBAL NOTES ARE SECURITIES DESIGNED TO BE EASILY BOUGHT AND SOLD IN THE WORLD'S MAJOR MARKETS MS. BRADBURY OF THE TREASURY DEPARTMENT SAID THE MAIN FACTOR IN DETERMINING WHETHER THE TREASURY WOULD OPT FOR A FLOATING RATE NOTE WOULD BE WHETHER SUCH AN ITEM WOULD REDUCE BORROWING COSTS FOR THE DEPARTMENT LAST JUNE THE TREASURY ADVISORY BORROWING COMMITTEE SUGGESTED THE DEPARTMENT CONSIDER FLOATING RATE NOTES IN ORDER TO PREVENT POSSIBLE FUNDING DIFFICULTIES THE SUGGESTION STEMMED FROM THE TREASURY'S DECISION LAST SPRING TO CUT THE AMOUNT OF LONG TERM DEBT IT SELLS IN FAVOR OF ISSUING MORE SHORT TERM DEBT FLOATING RATE SECURITIES ARE COMMONPLACE IN THE CORPORATE AND MUNICIPAL BOND MARKETS BUT THEY WOULD AMOUNT TO A NEW WRINKLE FOR THE TREASURY'S FINANCING SCHEMES POSSIBLE BUYERS FOR SUCH SECURITIES WOULD INCLUDE INSTITUTIONS LOOKING TO HEDGE THEIR EXPOSURE TO INTEREST RATE SWAPS IN WHICH ONE INSTITUTION SWAPS FLOATING INTEREST RATE PAYMENTS FOR FIXED ONES SAID LOUIS CRANDALL CHIEF ECONOMIST AT R. H. WRIGHTSON AND ASSOCIATES A FIRM THAT PROVIDES ANALYSIS OF TREASURY POLICIES AND ACTIVITIES THE INTEREST RATE SWAP MARKET IS ONE OF THE FASTEST GROWING SECTORS IN ALL THE WORLD'S BOND MARKETS ACCORDING TO ART ZIMMER A PORTFOLIO MANAGER AT OPPENHEIMER MANAGEMENT CORPORATION BANKS MAY FIND FLOATING RATE TREASURY NOTES ATTRACTIVE AS WELL BANKS TEND TO BUY SHORT MATURITY SECURITIES AND FLOATING RATE INSTRUMENTS WOULD ELIMINATE A LOT OF INTEREST RATE RISK HE SAID MR. ZIMMER ADDED THAT OPPENHEIMER HAS ABOUT TWENTY FIVE PERCENT OF ITS TOTAL ASSETS OF SEVEN BILLION DOLLARS IN FLOATING RATE OR VARIABLE RATE SECURITIES THE REDUCTION OF INTEREST RATE RISK COULD BE A RATHER SIGNIFICANT BENEFIT FOR MANY INVESTORS HE SAID BUT THE GOVERNMENT WOULD BE TAKING IT ON INSTEAD HE POINTED OUT BUT MR. CRANDALL OF WRIGHTSON AND ASSOCIATES SAID THERE IS SOMETHING CURIOUS ABOUT THE FACT THAT WHEN EVERYONE ELSE IN AMERICA IS TRYING TO LOCK IN THE LONGEST RATES THEY CAN THE TREASURY HAS DECIDED IT LIKES TO BORROW AT THE SHORT END OF THE CURVE THOUGH THE TREASURY'S PROPOSED FLOATING RATE NOTE COULD HAVE MATURITIES OF FIVE TO SEVEN YEARS THEY WOULD BE PAYING INTEREST OF SHORT TERM SECURITIES EVEN IF THERE WEREN'T A BIG GAP BETWEEN SHORT AND LONG TERM RATES MR. HARVEY OF DUKE ARGUES THAT FLOATING RATE DEBT WOULD STILL BE A GOOD IDEA ISSUANCE OF FLOATING RATE DEBT COULD HAVE A DIRECT INFLUENCE ON ECONOMIC POLICY MR. HARVEY ADDED FLOATING RATE DEBT PENALIZED AN INFLATIONARY POLICY HE SAID QUOTE IF THERE IS ANY IDEA OF REINFLATION SHORT TERM RATES WOULD RISE AND THE SERVICING COSTS OF THE DEBT WOULD GO UP AS WELL QUOTE HE SAID IT'S A POLICY CONSISTENT STRATEGY SEPARATELY THE TREASURY SAID IT PLANS TO SELL FORTY BILLION DOLLARS OF NOTES AND BONDS IN ITS MID QUARTER REFUNDING NEXT WEEK TO RAISE ABOUT SIXTEEN BILLION DOLLARS IN NEW CASH THE REFUNDING WILL CONSIST OF SEVENTEEN BILLION DOLLARS IN THREE YEAR NOTES DUE FEBRUARY FIFTEENTH NINETEEN NINETY SEVEN TO BE SOLD TUESDAY IN MINIMUM DENOMINATIONS OF FIVE THOUSAND DOLLARS TWELVE BILLION DOLLARS IN TEN YEAR NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND FOUR TO BE AUCTIONED WEDNESDAY IN MINIMUM DENOMINATIONS OF ONE THOUSAND DOLLARS AND ELEVEN BILLION DOLLARS IN THIRTY YEAR BONDS DUE AUGUST FIFTEENTH TWO THOUSAND TWENTY THREE TO BE SOLD NEXT THURSDAY IN MINIMUM DENOMINATIONS OF ONE THOUSAND DOLLARS SOME OF THE PROCEEDS OF THE SALE WILL BE USED TO REFUND TWENTY FOUR BILLION DOLLARS IN MATURING DEBT THE CUSIP NUMBERS ARE NINE ONE TWO EIGHT TWO SEVEN N. SEVENTY THREE FOR THE THREE YEAR NOTES NINE ONE TWO EIGHT TWO SEVEN N. EIGHTY ONE FOR THE TEN YEAR NOTES AND NINE ONE TWO EIGHT ONE OH E. Q. SEVEN FOR THE THIRTY YEAR BONDS NONCOMPETITIVE TENDERS FOR THE NOTES AND BONDS MUST BE RECEIVED BY NOON E. D. T. ON THE DAY OF THE AUCTION AT FEDERAL RESERVE BANKS OR BRANCHES THE AUCTION SIZES WERE MOSTLY AS EXPECTED ALTHOUGH SOME IN THE MARKET HAD BEEN LOOKING FOR A SMALLER THIRTY YEAR BOND OFFERING IN WHEN ISSUED TRADING LATE YESTERDAY THE THREE YEAR NOTE YIELDED FOUR POINT FIVE FIVE PERCENT THE TEN YEAR NOTE YIELDED FIVE POINT SIX SEVEN PERCENT AND THE BOND YIELDED SIX POINT TWO NINE PERCENT PRICES OF MOST U. S. TREASURY NOTES AND BONDS ENDED HIGHER YESTERDAY AFTER A LATE AFTERNOON RALLY REVERSED A PORTION OF TUESDAY'S DECLINES THE BEST PERFORMING ISSUES WERE LONGER TERM MATURITIES WITH SHORT TERM TREASURY SECURITIES STILL UNDER PRESSURE FROM CONCERNS THAT THE FEDERAL RESERVE IS CLOSER TO RAISING INTEREST RATES THAN HAD BEEN RECENTLY THOUGHT THE TEN YEAR NOTE ROSE NEARLY ONE QUARTER POINT TO ONE HUNDRED AND EIGHT THIRTY SECONDS TO YIELD FIVE POINT SEVEN NINE PERCENT COMPARED WITH FIVE POINT SEVEN THREE PERCENT ON TUESDAY THE TWO YEAR NOTE ENDED UNCHANGED AT NINETY NINE AND TWENTY THIRTY SECONDS TO YIELD FOUR POINT ONE EIGHT PERCENT THE PROMISE OF CONTINUED GROWTH IN THE PEOPLE'S REPUBLIC OF CHINA LURED U. S. AND ASIAN INVESTORS TO THE COUNTRY'S DEBUT ONE BILLION DOLLAR GLOBAL NOTE OFFERING YESTERDAY CHINA'S SIX POINT FIVE PERCENT COUPON TEN YEAR GLOBAL NOTES WERE SOLD AT NINETY NINE POINT FOUR OH SIX TO YIELD SIX POINT FIVE EIGHT TWO PERCENT THROUGH LEAD MANAGER MERRILL LYNCH THE COMPANY SOLD THE NOTES ONLY HOURS AFTER IT WAS LAUNCHED AND A DAY EARLIER THAN EXPECTED MERRILL LYNCH OFFICIALS DECLINED TO COMMENT ON THE GLOBAL NOTE OFFERING HOWEVER NOT EVERYONE LINED UP TO BUY THE PAPER ONE INVESTOR WHO DIDN'T BUY SAID HE WAS SKEPTICAL ABOUT CHINA'S ECONOMIC PROSPECTS HE ADDED THAT HE DOESN'T BELIEVE THE BONDS OFFERED ENOUGH YIELD TO COMPENSATE FOR THE RISKS INVOLVED THE INVESTOR SUGGESTED THAT THE DEAL'S PRICING MAY HAVE BEEN SPEEDED UP BECAUSE OF A CLINTON ADMINISTRATION REPORT TUESDAY TO CONGRESS SPOTLIGHTING BEIJING'S REPORTED HUMAN RIGHTS VIOLATIONS HE SAID THE REPORT RAISES CONCERNS THAT THE HUMAN RIGHTS ISSUE COULD ENDANGER CHINA'S MOST FAVORED NATION STATUS WITH THE U. S. SYNDICATE OFFICIALS COUNTERED THAT THE BOND MARKET HAS ALREADY FACTORED INTO THE PRICING THE REPEATED REPORTS OF CHINA'S HUMAN RIGHTS ABUSES AND POSSIBLE TRADE CONSEQUENCES THE DESIRE FOR YIELD IS CLOUDING OUT AND CROWDING OUT ALL OTHER ISSUES SAID JAMES SWANSON SENIOR VICE PRESIDENT AT MASSACHUSETTS FINANCIAL SERVICES ADDING THAT INVESTMENT GRADE BUYERS ARE SCRAMBLING TO BOOST RETURNS EUROPEAN INVESTORS SEEMED TO SHUN THE OFFERING ONE SYNDICATE OFFICIAL INVOLVED WITH THE OFFERING SAID THE DEBT WAS PRICED AT A YIELD SPREAD THAT WAS ZERO POINT ZERO FIVE TO ZERO POINT ONE ZERO PERCENTAGE POINT TOO NARROW TO LURE EUROPEAN INVESTORS WHO AREN'T AS UPBEAT ON CHINA AS THEIR ASIAN AND U. S. COUNTERPARTS CHINA'S GLOBAL NOTES WHICH ARE RATED SINGLE A THREE BY MOODY'S INVESTORS SERVICE AND TRIPLE B. BY STANDARD AND POOR'S WERE PRICED ZERO POINT EIGHT FIVE PERCENTAGE POINT OVER THE TEN YEAR TREASURY NOTE THE SUCCESS OR FAILURE OF THE DEAL WILL ULTIMATELY BE DETERMINED IN THE SECONDARY MARKET THE REAL TELLING STORY IS HOW IT WILL SELL IN TWENTY FOUR HOURS ONE OFFICIAL INVOLVED WITH CHINA'S OFFERING SAID MUNICIPAL BONDS FINISHED YESTERDAY'S SLOW TRADING UNCHANGED TO ONE QUARTER POINT HIGHER HAVING MAINTAINED A STRONG TONE DESPITE TWO MORE UNEXPECTEDLY STRONG U. S. ECONOMIC REPORTS SALEM COUNTY NEW JERSEY'S FIVE POINT FOUR FIVE PERCENT BONDS DUE TWO THOUSAND THIRTY TWO CLOSED ONE EIGHTH HIGHER AT NINETY NINE AND FIVE EIGHTHS YIELDING FIVE POINT FOUR SEVEN PERCENT SALES OF NEW SINGLE FAMILY HOMES JUMPED ELEVEN POINT FOUR PERCENT IN DECEMBER TO AN EIGHT HUNDRED SIXTY TWO THOUSAND ANNUAL RATE THAT MONTH THE INDEX OF LEADING INDICATORS ROSE ZERO POINT SEVEN PERCENT REGISTERING THE FIFTH CONSECUTIVE RISE AND CAPPING THE STRONGEST STRING OF INCREASES IN A DECADE THE COMMERCE DEPARTMENT SAID ALTHOUGH MUNIS HAVE HAD A GENERALLY STRONG TONE FOR THE LAST WEEK OR SO SOME MARKET PARTICIPANTS NOTE THAT PURCHASES HAVEN'T BEEN VERY AGGRESSIVE BUT SMITH BARNEY SHEARSON PORTFOLIO STRATEGIST GEORGE FRIEDLANDER SAID THAT MUNIS SHOULD GET A BOOST IN THE MONTHS AHEAD FROM A WIDELY ANTICIPATED ISSUANCE SLOWDOWN PRICINGS OF REFUNDING BONDS WHICH EXCEEDED ONE HUNDRED EIGHTY FIVE BILLION DOLLARS IN NINETEEN NINETY THREE AND SET A RECORD ARE EXPECTED TO EBB THIS YEAR MOODY'S INVESTORS SERVICE SAID ITS OUTLOOK FOR MUNICIPAL CREDIT QUALITY IN NINETEEN NINETY FOUR IS CAUTIOUSLY OPTIMISTIC AND PREDICTED THAT THE YEAR WILL BE CHARACTERIZED BY FOUR BROAD POSITIVE TRENDS THOSE TRENDS ARE THE NATIONAL ECONOMIC RECOVERY LOWER DEBT SERVICE COSTS BECAUSE OF REFUNDINGS LOWER OIL PRICES AND THE END OF THE DETERIORATION IN STATE CREDIT QUALITY MOODY'S SAID LUCINDA HARPER IN WASHINGTON CONTRIBUTED TO THIS ARTICLE THE BUSINESS ROUNDTABLE VOTED TO SUPPORT A HEALTH CARE BILL THE CLINTON ADMINISTRATION OPPOSES DESPITE ARDENT WHITE HOUSE LOBBYING THE ORGANIZATION OF CHIEF EXECUTIVES OF SOME OF THE NATION'S LARGEST CORPORATIONS AGREED TO BACK THE COOPER BREAUX BILL WHICH WOULD FALL SHORT OF THE ADMINISTRATION'S GOAL OF GUARANTEEING COVERAGE FOR EVERY AMERICAN THE INDEX OF LEADING ECONOMIC INDICATORS JUMPED A VIGOROUS ZERO POINT SEVEN PERCENT IN DECEMBER ITS FIFTH CONSECUTIVE RISE SEPARATELY SALES OF NEW HOMES SHOT UP ELEVEN POINT FOUR PERCENT IN DECEMBER TO AN ANNUAL RATE OF EIGHT HUNDRED SIXTY TWO THOUSAND THE HIGHEST IN SEVEN YEARS ROGERS COMMUNICATIONS PLANS TO MAKE AN OFFER VALUED AT TWO POINT OH THREE BILLION DOLLARS FOR EIGHTY THREE PERCENT OF MACLEAN HUNTER TO FORM A MEDIA COMPANY THAT WOULD CONTROL ONE THIRD OF CANADIAN CABLE T. V. A BIPARTISAN GROUP OF SENATORS IS EXPECTED TO INTRODUCE LEGISLATION DESIGNED TO ENSURE ACCESS TO TELEPHONE SERVICES WHILE BREAKING DOWN BARRIERS BETWEEN CABLE T. V. FIRMS AND LONG DISTANCE AND REGIONAL PHONE COMPANIES STATE REGULATORS ARE EXAMINING WAYS TO PROD BROKERS TO DISCLOSE INVESTMENT INFORMATION MORE QUICKLY A MOVE STEMMING FROM THE PARTNERSHIP SCANDAL AT PRUDENTIAL SECURITIES VIACOM HAS A CLEAR BUT NARROW EDGE OVER Q. V. C. AFTER THE FINAL ROUND OF BIDDING FOR PARAMOUNT TRADERS SAID Q. V. C. STOCK SURGED TWO DOLLARS AND TWENTY FIVE CENTS TO FORTY SEVEN DOLLARS AND VIACOM CLASS B. SHARES FELL SIXTY TWO POINT FIVE CENTS TO THIRTY THREE DOLLARS AND FIFTY CENTS REFLECTING THE VIEW THAT THE EVENTUAL WINNER WILL ISSUE MILLIONS OF NEW SHARES AND TAKE ON DEBT VANGUARD GROUP PLANS TO ENTER THE EMERGING MARKETS MUTUAL FUND ARENA WITH AN INDEX FUND THAT AIMS TO KEEP TRADING AND EXPENSES TO A MINIMUM THE TREASURY IS STUDYING A PROPOSAL TO OFFER A FLOATING RATE NOTE WHICH MAY ATTRACT MORE INVESTORS MANY U. S. COMPANIES ARE EAGER TO ENTER THE VIETNAM MARKET BUT SEVERAL MORE DIPLOMATIC STEPS ARE NEEDED BEFORE SOME CAN TAKE FULL ADVANTAGE THE CHICAGO MERCANTILE EXCHANGE IS MAKING IT MORE EXPENSIVE TO SPECULATE IN STOCK INDEX FUTURES APPARENTLY TO AVERT A STOCK MARKET SELL OFF IF INTEREST RATES BEGIN TO INCREASE SHARPLY TOKYO UNVEILED A TAX CUT AS THE FIRST PART OF ITS STIMULUS PACKAGE WHICH IS EXPECTED TO TOTAL ABOUT ONE HUNDRED THIRTY EIGHT BILLION DOLLARS JACOBY AND MEYERS LAUNCHED WHAT LEGAL EXPERTS SAY ARE THE FIRST TELEVISION ADS TO INVITE PEOPLE TO CONSIDER SUING A SPECIFIC COMPANY COPLEY PHARMACEUTICAL WHICH RECALLED AN ASTHMA DRUG ALBUTEROL LAST MONTH EURO DISNEY POSTED A THIRTY ONE PERCENT WIDER LOSS FOR ITS FIRST QUARTER AS BANKERS HELD INCONCLUSIVE TALKS ABOUT ITS FATE BELL ATLANTIC AND KNIGHT RIDDER AGREED TO JOINTLY DEVELOP NEWS ENTERTAINMENT AND ADVERTISING PROGRAMMING FOR AN INTERACTIVE SERVICE BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND SIX HUNDRED FIFTEEN POINT SEVEN NINE UP FIFTEEN POINT SIX EIGHT COMMODITIES OIL SIXTEEN DOLLARS AND FOUR CENTS A BARREL UP TWELVE CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY THREE POINT FIVE THREE UP ZERO POINT FOUR ONE SPOT INDEX ONE HUNDRED THIRTY POINT SEVEN TWO UP ZERO POINT ONE EIGHT DOLLAR ONE HUNDRED SEVEN POINT EIGHT EIGHT YEN UP ZERO POINT ONE EIGHT ONE POINT SEVEN THREE THREE SIX MARKS UP ZERO POINT ZERO ZERO ONE SIX INVESTMENT PROFESSIONALS SCORED A DECISIVE VICTORY IN THIS COLUMN'S LATEST STOCK PICKING CONTEST BUT A RANDOM THROW OF DARTS DIDN'T DO TOO BADLY EITHER LED BY EDWARD C. QUOTE TED QUOTE RORER FOUNDER AND CHIEF INVESTMENT OFFICER OF RORER ASSET MANAGEMENT IN PHILADELPHIA FOUR PROS CHALKED UP A TWENTY SEVEN POINT EIGHT PERCENT AVERAGE GAIN IN THE CONTEST THAT RAN FROM AUGUST SIXTEENTH THROUGH JANUARY THIRTY FIRST THE WHIMS OF CHANCE REPRESENTED BY FOUR WALL STREET JOURNAL STAFFERS FLINGING DARTS AT THE STOCK LISTINGS POSTED AN EIGHTEEN POINT FIVE PERCENT AVERAGE GAIN THE DOW JONES INDUSTRIAL AVERAGE SHOWED A GAIN OF ELEVEN POINT TWO PERCENT DURING THE PERIOD THE LATEST RESULTS BRING THE TALLY OF PRO WINS AGAINST THE DARTS TO TWENTY SIX TO EIGHTEEN IN THIS SERIES OF OVERLAPPING SIX MONTH CONTESTS THAT BEGAN IN NINETEEN NINETY AGAINST THE INDUSTRIAL AVERAGE HOWEVER THE PROS EKED OUT A MUCH NARROWER LEAD OF TWENTY THREE WINS TO TWENTY ONE THE PROS LOOK BETTER MEASURED BY THE ACTUAL PERFORMANCE OF THEIR SELECTIONS FOR ALL FORTY FOUR SIX MONTH CONTESTS THE AVERAGE GAIN FOR THE PROS IS EIGHT POINT THREE PERCENT COMPARED WITH AN AVERAGE THREE POINT EIGHT PERCENT FOR THE DARTS AND FOUR POINT FIVE PERCENT FOR THE DOW INDUSTRIALS THIS TIME AROUND EACH OF THE PROS' FOUR PICKS BEAT THE INDUSTRIAL AVERAGE THE TOP PERFORMER MR. RORER'S CHOICE OF SANTA FE PACIFIC CORPORATION THE SCHAUMBURG ILLINOIS RAILROAD COMPANY ROSE A RESOUNDING FORTY POINT SEVEN PERCENT IT WAS FOLLOWED BY A TWENTY NINE POINT SIX PERCENT GAIN FOR PHILIP MORRIS COMPANIES THE NEW YORK TOBACCO AND FOOD GIANT SELECTED BY MICHAEL METZ CHIEF INVESTMENT STRATEGIST FOR OPPENHEIMER AND COMPANY IN NEW YORK AS IS CUSTOMARY THE TOP TWO FINISHERS HAVE BEEN INVITED BACK FOR ANOTHER SKIRMISH IT WILL BE MR. METZ'S THIRD TIME AS A CONTESTANT HE PLACED FIRST IN THE COMPETITION THAT RAN FROM FEBRUARY THROUGH JULY OF LAST YEAR WHEN HIS CHOICE OF HOMESTAKE MINING SOARED EIGHTY PERCENT MR. RORER IS BETTING ON A COMMODITY PLAY TO REPEAT HIS FIRST PLACE FINISH IN THE CURRENT CONTEST HIS STOCK PICK FOR THE COMING SIX MONTHS IS I. M. C. FERTILIZER GROUP INCORPORATED OF NORTHBROOK ILLINOIS WHICH MINES PHOSPHATE AND MAKES DIAMMONIUM PHOSPHATE A FERTILIZER KNOWN AS D. A. P. THEIR KEY TO PROFITABILITY IS THE PRICE OF D. A. P. MR. RORER SAYS PRICES FELL TO A TWENTY YEAR LOW LAST YEAR AS WORLD WIDE SUPPLY EXCEEDED DEMAND AND SUBSIDIES FOR FOREIGN PRODUCERS SQUEEZED U. S. EXPORTERS REVIVING DEMAND PLUS THE SCRAPPING OF SOME SUBSIDIES HAS BUOYED PRICES THIS YEAR ALTHOUGH MR. RORER NOTES THAT THEY'RE STILL BELOW THEIR TEN YEAR AVERAGE AND WELL BELOW THE NINETEEN EIGHTY EIGHT PEAK I. M. C. STOCK TRADED LATE YESTERDAY ON THE BIG BOARD AT FORTY FIVE DOLLARS UP FROM A LOW OF TWENTY FOUR POINT THREE SEVEN FIVE DOLLARS LAST YEAR BUT STILL LOWER THAN THE SIXTY EIGHT DOLLARS A SHARE IT FETCHED IN NINETEEN NINETY TWO THE COMPANY RESOLVED SOME PENDING PROBLEMS IN NINETEEN NINETY THREE BY SETTLING A LAWSUIT RELATED TO A NINETEEN NINETY ONE EXPLOSION AT A PLANT IT OPERATED FOR ALBERTA NATURAL GAS COMPANY'S ANGUS CHEMICAL UNIT AND BY RESTRUCTURING ITS DEBT MR. RORER SAYS I. M. C. ALSO CUT PHOSPHATE PRODUCTION COSTS THROUGH A JOINT VENTURE WITH A LIMITED PARTNERSHIP THAT IS FIFTY ONE POINT THREE PERCENT OWNED BY FREEPORT MCMORAN INCORPORATED LOOKING FORWARD MR. RORER ADDS FERTILIZER DEMAND SHOULD GET A BOOST FROM GROWTH IN THE WORLD'S POPULATION SINCE MORE PEOPLE WILL HAVE TO BE FED WITH CROPS GROWN ON A FIXED AMOUNT OF LAND THE U. S. MARKET LOOKS GOOD HE SAYS BECAUSE CORN PRODUCTION PLUMMETED THIRTY ONE PERCENT LAST YEAR AND INVENTORIES HAVE TO BE REPLENISHED MEANWHILE OPPENHEIMER'S MR. METZ IS PUTTING HIS CHIPS ON GOLD TO WIN THE CURRENT CHALLENGE HIS CHOICE IS HORSHAM CORPORATION A TORONTO HOLDING COMPANY WHICH CONTROLS TWENTY PERCENT OF AMERICAN BARRICK RESOURCES CORPORATION A TORONTO GOLD MINING CONCERN MR. METZ SAYS GOLD PRICES COULD RISE TO FIVE HUNDRED DOLLARS AN OUNCE THIS YEAR FROM ABOUT THREE HUNDRED EIGHTY FIVE DOLLARS CURRENTLY HORSHAM ALSO OWNS CLARK REFINING AND MARKETING INCORPORATED OF SAINT LOUIS AND HAS REAL ESTATE INTERESTS IN GERMANY MR. METZ NOTES THAT THE COMPANY HAS AN EIGHT HUNDRED MILLION DOLLAR CASH HORDE TO USE FOR ACQUISITIONS INCLUDING FIVE HUNDRED FIFTY MILLION DOLLARS FROM A DEBENTURE OFFERING AT THREE AND ONE QUARTER PERCENT IT'S CHEAP MONEY I THINK THEY WILL PUT IT TO GOOD USE HE SAYS THE DEBENTURES ARE CONVERTIBLE INTO AMERICAN BARRICK SHARES AT HORSHAM'S OPTION HORSHAM OFFICIALS HAVE SAID THEY'VE RULED OUT ACQUIRING ANOTHER GOLD MINING CONCERN BUT OTHERWISE THEIR POSSIBILITIES AREN'T LIMITED BY GEOGRAPHY OR INDUSTRY IT'S PARTLY A GOLD PLAY PARTLY AN ENTREPRENEURIAL PLAY MR. METZ SAYS ABOUT HIS CHOICE THE COMPANY HAS STRONG ENTREPRENEURIAL MANAGEMENT THE STOCK TRADED AT FOURTEEN POINT SIX TWO FIVE DOLLARS LATE YESTERDAY ON THE NEW YORK STOCK EXCHANGE MR. METZ THINKS THE PRICE COULD RISE AS MUCH AS FIFTY PERCENT DURING THE COURSE OF THE CONTEST JOINING MR. RORER AND MR. METZ IN THE CURRENT COMPETITION WHICH RUNS THROUGH JULY THIRTY FIRST ARE THERESA HAMACHER AND BEN ZACKS MS. HAMACHER IS MANAGING DIRECTOR OF PRUDENTIAL INVESTMENT ADVISORS THE NEWARK N. J. UNIT OF PRUDENTIAL INSURANCE COMPANY OF AMERICA THAT MANAGES THE PRUDENTIAL MUTUAL FUNDS MR. ZACKS IS EXECUTIVE VICE PRESIDENT OF ZACKS INVESTMENT RESEARCH INCORPORATED IN CHICAGO MS. HAMACHER'S CHOICE IS U. S. X. U. S. STEEL GROUP THE STEELMAKING UNIT OF THE PITTSBURGH BASED U. S. X. CORPORATION THAT TRADES AS A SEPARATE COMPANY THE ENTIRE STEEL INDUSTRY HAS UNDERGONE A MASSIVE RESTRUCTURING SHE SAYS AND STANDS TO BENEFIT FROM THE ECONOMIC RECOVERY PARTICULARLY THE STRONG AUTO CYCLE THAT WE'RE SEEING U. S. STEEL HAS REDUCED COSTS SUBSTANTIALLY CUTTING CAPACITY TO A THIRD OF WHAT IT WAS IN NINETEEN EIGHTY MS. HAMACHER SAYS PLANT MODERNIZATION COSTS ARE BEHIND THE COMPANY NOW AND ITS PENSION PLAN IS OVERFUNDED SHE ADDS COST REDUCTIONS AND A WEAK DOLLAR PUT U. S. STEEL IN A STRONG COMPETITIVE POSITION INTERNATIONALLY AND IT ALSO STANDS TO BENEFIT FROM CAPACITY REDUCTIONS OVERSEAS MS. HAMACHER SAYS SHE SAYS THE STOCK PRICE COULD GO TO SIXTY DOLLARS OR SIXTY FIVE DOLLARS IN THE NEXT SIX MONTHS IT TRADED ON THE NEW YORK STOCK EXCHANGE LATE YESTERDAY AT FORTY TWO DOLLARS AND FIFTY CENTS MR. ZACKS FOR HIS PART LIKES U. A. L. CORPORATION THE CHICAGO BASED PARENT OF UNITED AIRLINES ASSUMING THAT THE COMPANY'S PROPOSED EMPLOYEE LED BUYOUT IS APPROVED BY SHAREHOLDERS THIS SPRING HE EXPECTS EARNINGS ESTIMATES TO RISE PUSHING UP THE STOCK PRICE QUOTE THE TWO LARGEST COST ITEMS IN THE AIRLINE BUSINESS ARE LABOR AND FUEL AND BOTH APPEAR TO BE COMING DOWN DRAMATICALLY QUOTE MR. ZACKS SAYS HE ALSO THINKS THE AIRLINE'S ROUTES TO THE FAR EAST WILL GENERATE INCREASED REVENUE AND PROFITS I DON'T THINK ANY OF THIS IS REFLECTED IN THE STOCK PRICE HE SAYS UNDER TERMS OF THE BUYOUT PROPOSAL WHICH HAS BEEN APPROVED BY THE AIRLINE'S PILOTS AND MACHINISTS EMPLOYEES WOULD EXCHANGE WAGE AND WORK RULE CONCESSIONS FOR AN INITIAL FIFTY THREE PERCENT STAKE IN U. A. L. THE PLAN ALSO WOULD PERMIT UNITED TO SET UP A SEPARATE LOW FARE SHORT ROUTE CARRIER WITH LOWER LABOR COSTS MAKING IT A STRONGER COMPETITOR AGAINST NO FRILLS CARRIERS U. A. L. TRADED LATE YESTERDAY AT ONE HUNDRED FORTY SIX DOLLARS ON THE NEW YORK STOCK EXCHANGE THE PROS' STOCK SELECTIONS WILL BE UP AGAINST A DARTBOARD PORTFOLIO CONSISTING OF BANCFIRST CORPORATION OF OKLAHOMA CAMPBELL SOUP COMPANY CARENETWORK INCORPORATED AND NORTHERN BORDER PARTNERS L. P. WIN THIS CONTEST A COUPLE OF TIMES AND PEOPLE WILL BEAT A PATH TO YOUR PICKS A STUDY BY SCOTT SMART AND JASON GREENE OF INDIANA UNIVERSITY FINDS THAT THE AVERAGE STOCK FEATURED IN THE INVESTMENT DARTBOARD COLUMN RISES ONE POINT SIX PERCENT ON PUBLICATION DAY WITH AN EIGHTY SEVEN PERCENT INCREASE IN TRADING VOLUME BUT STOCKS FAVORED BY CONTESTANTS WHO HAVE PREVIOUSLY DONE WELL IN THE CONTEST FINISHING FIRST OR SECOND AT LEAST TWICE RISE FIVE POINT FOUR PERCENT ON AVERAGE WITH AN INCREASE IN TRADING VOLUME OF TWO HUNDRED THIRTY FOUR PERCENT READERS WHO HOPE TO PROFIT BY JUMPING ON THE BANDWAGON MAY WELL MISS OUT HOWEVER THE INDIANA RESEARCHERS SAY MOST OF THE PRICE JUMP OCCURS DURING THE FIRST HALF HOUR OF TRADING SERVICES SLASH TRADELINE LAKESHORE BANCORP UP THIRTY ONE POINT NINE PERCENT GENERAL ELECTRIC UP TEN POINT TWO PERCENT CAPITAL AMERICAN FINANCIAL DOWN TWO POINT TWO PERCENT FOUR YEARS AGO MARIO BARRAZA JUMPED AT A CHANCE TO WORK FOR A SMALL METAL RECYCLING SHOP IN ALBUQUERQUE N. M. BUT LATER THE UNEMPLOYED YOUNG FATHER DID CONFIDE ONE WORRY TO HIS FAMILY THE HUGE QUOTE GUILLOTINE SHEAR QUOTE THAT HE WAS THEN OPERATING AT ACME IRON AND METAL COMPANY SEEMED DANGEROUS THE MACHINE COMPACTED SCRAP METAL IN A STEEL BOX TWENTY TWO FEET LONG AND PUSHED OUT THE COMPACTED MASS THEN ITS VERTICAL BLADE SLICED IT LIKE BUTTER IN SEPTEMBER NINETEEN NINETY TWO MR. BARRAZA GOT CAUGHT INSIDE THE MACHINE AND WAS CUT IN HALF THOUGH NOBODY WITNESSED THE ACCIDENT A NEW MEXICO SAFETY INSPECTOR SAID MR. BARRAZA PROBABLY WAS TRYING TO RETRIEVE A PIECE OF SCRAP THAT HAD STALLED THE MACHINE WHEN THE RAM RE ENERGIZED AND KILLED HIM INSTANTLY THE STATE CITED ACME IRON AND METAL FOR EIGHTEEN SERIOUS SAFETY VIOLATIONS INCLUDING LACK OF ANY PROGRAM TO PREVENT THE GUILLOTINE SHEAR FROM UNEXPECTEDLY STARTING UP THE SIX HUNDRED FIFTY THOUSAND DOLLAR MACHINE LACKED A COMMON SAFETY DEVICE A THIRTY DOLLAR PADLOCK ON ITS POWER SWITCH A WELL TRAINED EMPLOYEE WOULD LOCK OFF THE POWER BEFORE DOING ANY MAINTENANCE ACME'S OWNER WALTER SCHMIDER SAYS THAT SAFETY HAS ALWAYS BEEN IMPORTANT TO HIM AND THAT SINCE THE ACCIDENT THE COMPANY HAS INVESTED UP TO SEVENTY THOUSAND DOLLARS IN EQUIPMENT TO MEET REGULATIONS BUT HE CONTENDS THAT THE CHANGES HAVEN'T MADE HIS COMPANY ANY SAFER AND DOUBTS THAT A PADLOCK WOULD HAVE SAVED MR. BARRAZA'S LIFE ALTHOUGH UNSAFE CONDITIONS AT GIANT CORPORATIONS ATTRACT THE MOST ATTENTION MANY OF THE WORST HAZARDS ARE AT SMALL COMPANIES A WALL STREET JOURNAL COMPUTER ANALYSIS OF MORE THAN FIVE HUNDRED THOUSAND FEDERAL AND STATE SAFETY INSPECTION RECORDS FROM NINETEEN EIGHTY EIGHT THROUGH NINETEEN NINETY TWO SHOWS THAT FOUR THOUSAND THREE HUNDRED THIRTY SEVEN WORKERS DIED AT INSPECTED WORKPLACES WITH FEWER THAN TWENTY EMPLOYEES BUT ONLY ONE HUNDRED TWENTY SEVEN DIED AT THOSE WITH MORE THAN TWO THOUSAND FIVE HUNDRED WORKERS AT THE SMALLEST SITES THERE WERE ONE POINT NINE SEVEN DEATHS PER ONE THOUSAND WORKERS OVER THE FIVE YEARS COMPARED WITH JUST ZERO POINT ZERO ZERO FOUR DEATHS PER ONE THOUSAND WORKERS AT THE LARGEST WORKPLACES OF EMPLOYEES AT INSPECTED WORK SITES WITH FEWER THAN TWENTY WORKERS ONE IN SIX WORKED IN AN AREA CITED FOR A SERIOUS SAFETY VIOLATION AT THE BIG SITES ONLY ONE IN SIX HUNDRED DID OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION OFFICIALS CAUTION THAT BECAUSE OF GOVERNMENT INSPECTION POLICIES ANY DATABASE ANALYSIS MIGHT EXAGGERATE THE DANGERS IN A SMALL BUSINESS THEY SAY A HIGH NUMBER OF INSPECTIONS OF SMALL VERY HAZARDOUS CONSTRUCTION SITES MAY PARTLY SKEW THE RESULTS THEY ADD THAT INVESTIGATORS TYPICALLY INSPECT A SMALL PLANT THOROUGHLY BUT A LARGE ONE ONLY PARTIALLY MOREOVER MANY SMALL WORKPLACES DO MAINTAIN HIGH SAFETY AND HEALTH STANDARDS AND SOME ARE PARTS OF BIG COMPANIES STILL THE FINDINGS RAISE FRESH CONCERNS ABOUT WORKER HEALTH AND SAFETY ESPECIALLY AS BIG COMPANIES LAY OFF EMPLOYEES AND MORE PEOPLE WORK AT SMALL FIRMS THE STATISTICAL EVIDENCE ECHOES THE EXPERIENCE OF PROFESSIONALS IN THE FIELD WE HAVE SEEN MORE DEPLORABLE CONDITIONS IN SMALL BUSINESSES THAN IN LARGE ONES SAYS GARY ANDERSON AREA DIRECTOR FOR THE OSHA OFFICE IN CALUMET CITY ILLINOIS CAROL AMATO ADMINISTRATOR OF VIRGINIA'S OCCUPATIONAL HEALTH AND SAFETY PROGRAM NOTES THAT MORE THAN HALF OF THE DEATHS THAT HER OFFICE INVESTIGATES OCCUR AT SITES WITH FEWER THAN TWENTY ONE EMPLOYEES AT MANY SMALL BUSINESSES SHE SAYS IT TAKES A SERIOUS ACCIDENT OR FATALITY FOR THEM TO WAKE UP PROFESSIONALS SAY SMALL BUSINESSES GENERALLY DON'T FACE THE PUBLICITY UNION PRESSURE AND GOVERNMENT SCRUTINY THAT FORCE LARGE COMPANIES TO TAKE HEALTH AND SAFETY SERIOUSLY INSTEAD MANY ARE PREOCCUPIED WITH JUST STAYING IN BUSINESS SOMETIMES SMALL BUSINESSES SURVIVE BY PUSHING LABOR STANDARDS DOWN SAYS HARLEY SHAIKEN A UNIVERSITY OF CALIFORNIA AT BERKELEY WORKPLACE SPECIALIST ACME'S MR. SCHMIDER FOR EXAMPLE SAYS HE IS RELUCTANT TO DISMISS EMPLOYEES WHO DON'T OBSERVE SAFETY PRACTICES A COMMON COURSE OF ACTION AT LARGE COMPANIES NOTING THAT HIS STARTING PAY IS ONLY FIVE DOLLARS AND FIFTY CENTS TO SIX DOLLARS AND FIFTY CENTS AN HOUR HE SAYS WE CAN'T GET PEOPLE SO HOW CAN WE FIRE THEM MOST SMALL COMPANIES DON'T HAVE ANY MEDICAL STAFF TRAINED SUPERVISORS AND PROFESSIONALS WHO TRACK HEALTH AND SAFETY REGULATIONS A RECENT NATIONAL SAFETY COUNCIL SURVEY FOUND THAT ONLY THIRTY ONE PERCENT OF COMPANIES WITH FEWER THAN FIFTY EMPLOYEES HAVE LABOR MANAGEMENT COMMITTEES THAT MONITOR WORKPLACE HEALTH AND SAFETY COMPARED WITH SEVENTY FIVE PERCENT OF LARGER EMPLOYERS LACK OF EXPERTISE BREEDS DISREGARD OF HAZARDS ULYSSES GRIFFIN WORKED FOR YEARS SANDBLASTING METAL PRODUCTS WITH SILICA SAND AT COMMERCIAL STEEL TREATING COMPANY A TINY METAL TREATING FIRM IN CLEVELAND HE DIED IN JULY NINETEEN NINETY ONE AT AGE FIFTY SIX OF SEVERE SILICOSIS MEDICAL PROFESSIONALS SAY ALTHOUGH THE DANGERS OF BREATHING SILICA DUST HAVE BEEN KNOWN FOR CENTURIES OSHA'S NANCY NEWMAN WHO SUPERVISED A COMMERCIAL STEEL INSPECTION AFTER MR. GRIFFIN DIED SAYS NOBODY WHO WORKED THERE HAD ANY IDEA HOW BAD IT REALLY WAS FROM THE WORKERS TO THE OWNER TO HIS SONS NOBODY HAD A CLUE THAT THE SILICA WAS MAKING THE EMPLOYEES SO SICK QUOTE EMPLOYEES WERE TOLD MR. GRIFFIN HAD DIED OF TUBERCULOSIS AN EARLY DIAGNOSIS OF HIS SYMPTOMS ACCORDING TO GOVERNMENT INSPECTORS' REPORTS THE COMPANY CONTINUED USING TONS OF SILICA A WEEK IN BAGS WITH CLEAR WARNINGS ONE REPORT SAYS IN EARLY NINETEEN NINETY TWO HEALTH OFFICIALS FOUND A PILE OF SILICA SAND AND DUST THAT STOOD AS HIGH AS SIX FEET AND COVERED A FIFTEEN BY FIFTY FOOT AREA ON THE FACTORY FLOOR THEY ALSO FOUND ACCORDING TO THEIR REPORTS EMPLOYEES EXPOSED TO SILICA DUST WITHOUT PROPER RESPIRATORS OR PROTECTIVE GEAR THE GOVERNMENT ADMINISTERED CHEST X. RAYS TO SIXTEEN CURRENT AND FORMER EMPLOYEES AND FIVE HAD LUNG TISSUE INDICATING SILICA DUST REACTION ONE OF THE FIVE THIRTY SEVEN YEAR OLD WALLACE OVERBY HAD SYMPTOMS OF A SEVERE OFTEN FATAL FORM OF SILICOSIS ACCORDING TO GOVERNMENT MEDICAL REPORTS AND HIS LAWYERS MR. OVERBY FILED A LAWSUIT LAST YEAR IN STATE COURT IN CLEVELAND THAT ALLEGES COMMERCIAL STEEL INTENTIONALLY CAUSED HIM PERMANENT TOTAL DISABILITY THE COMPANY DENIES THE CHARGES HAROLD SEITZ COMMERCIAL STEEL'S SEVENTY NINE YEAR OLD OWNER COMPARES THE COMPANY'S PROBLEMS TO OTHER WARNINGS PEOPLE IGNORE SUCH AS LABELS ON YOUR CIGARETTES HE REFUSES TO COMMENT FURTHER CITING THE LITIGATION IN A SETTLEMENT WITH THE GOVERNMENT COMMERCIAL STEEL WHILE NOT ADMITTING TO ANY ALLEGATIONS AGREED TO PAY A TWENTY FIVE THOUSAND DOLLAR PENALTY ABATE VIOLATIONS AND BEGIN MEDICAL MONITORING AND TREATMENT FOR CURRENT AND FORMER EMPLOYEES IT ALSO SWITCHED TO A LESS TOXIC ABRASIVE EVEN A SMALL COMPANY'S INFORMALITY WHICH MANY PEOPLE LIKE CAN LEAD TO UNEXPECTED DANGERS AKIRA KON LOVED THE CREATIVE ATMOSPHERE AT ALTURA STUDIOS INCORPORATED A TINY WOODWORKING BUSINESS IN NEW YORK CITY AND SWORE HE WOULD NEVER WORK ON A BIG FURNITURE MAKER'S ASSEMBLY LINE IN OCTOBER NINETEEN NINETY TWO MR. KON WAS HELPING A CO WORKER GET A FOUR BY EIGHT FOOT MAPLE PANEL FROM A STACK LEANING AGAINST A WALL WHEN PULLED OFF THE WALL AND BALANCING ON EDGE THE HEAVY PANELS FELL AND STRUCK MR. KON HE HIT HIS HEAD ON A STEEL TABLE AND DIED SHORTLY AFTERWARD ALTURA'S OWNER JEFF BEHNKE SAYS THAT IF HE HAD SEEN THE MEN TRYING TO MOVE THE PANELS HE WOULD HAVE INSISTED ON HAVING A THIRD PERSON HELP OUT BUT MR. BEHNKE WAS IN HIS OFFICE AND HIS PRODUCTION MANAGER WASN'T AVAILABLE THERE'S NO WAY I CAN BE OUT IN THE SHOP FOLLOWING EVERYBODY AROUND AND SAYING THIS LOOKS A LITTLE DANGEROUS MR. BEHNKE SAYS STEVEN WILKES AN OSHA COMPLIANCE OFFICER WHO INVESTIGATED THE ACCIDENT SAYS THE TYPICAL SMALL BUSINESS OWNER ACCEPTS RESPONSIBILITY FOR SAFETY BUT WEARS TOO MANY HATS TO PAY SUFFICIENT ATTENTION YOU HAVE WORKMEN WORKING BY THEMSELVES AND NOBODY HAS THE TIME TO WATCH THEM HE SAYS WHAT'S MORE COMPETITIVE PRESSURES CAN CAUSE SMALL BUSINESSES TO AVOID INVESTMENTS IN SAFETY IN NOVEMBER NINETEEN NINETY TWO THREE SAINT LOUIS WORKMEN WERE USING LACQUER THINNER TO REFINISH THE METAL INSIDE A CLOSED ELEVATOR WHEN ACCORDING TO A POLICE REPORT A RAG TOUCHED EXPOSED WIRES THE ELEVATOR CAUGHT FIRE AND TWO DIED THE OTHER COMPANIES WHO DO NOT TAKE ELEVATOR DOORS OFF WOULD GET THE JOBS AND OUR EMPLOYEES WOULD BE OUT OF WORK SAYS A COMPANY FILING WITH AN ADMINISTRATIVE REVIEW COMMISSION THE FIRM IS CONTESTING OFFICIAL ACCOUNTS OF THE ACCIDENT CHEMICAL HAZARDS ARE COMMON PROBLEMS A NINETEEN NINETY ONE GENERAL ACCOUNTING OFFICE SURVEY FOUND THAT FIFTY EIGHT PERCENT OF EMPLOYERS WITH FEWER THAN TWENTY WORKERS WEREN'T COMPLYING WITH SOME ASPECT OF FEDERAL REQUIREMENTS THAT THEY IDENTIFY SUCH HAZARDS AND INFORM EMPLOYEES ONLY TWENTY PERCENT OF EMPLOYERS WITH FIVE HUNDRED OR MORE WORKERS FAILED TO COMPLY BUT SMALL BUSINESSES OFTEN SKIMP ON SAFETY INFORMATION AND TRAINING ACROSS THE BOARD THAT CAN BE ESPECIALLY RISKY BECAUSE SUCH COMPANIES RELY MORE HEAVILY THAN DO BIG COMPANIES ON WORKERS WHO ARE YOUNG OR SPEAK LITTLE ENGLISH IN FEBRUARY NINETEEN NINETY TWO EVERARDO RANGEL JASSO WAS CRUSHED TO DEATH AT DENTON PLASTICS INCORPORATED A PORTLAND OREGON PLASTICS RECYCLER ACCORDING TO AN OSHA REPORT THE SEVENTEEN YEAR OLD WAS BACKING UP A FORKLIFT WITH A BOX HIGH ON ITS FORK WHEN HE CUT THE REAR WHEELS SHARPLY AND THE VEHICLE TIPPED OVER A POSTED SIGN IN ENGLISH WARNED FORKLIFT DRIVERS TO WEAR SEAT BELTS BUT THE MEXICAN YOUTH DIDN'T SPEAK ENGLISH INSPECTORS REPORTED ONE INSPECTOR SURMISED THAT A SEAT BELT MIGHT HAVE SAVED HIS LIFE EMPLOYEES TOLD INVESTIGATORS THAT HISPANIC WORKERS LEARNED THEIR JOBS THROUGH QUOTE HAND SIGNALS AND BODY GESTURES QUOTE THEY ALSO SAID MANAGEMENT TOLD UNTRAINED WORKERS TO RUN FORKLIFTS THOUGH MANAGEMENT CONTENDED THAT ONLY TRAINED WORKERS WERE PERMITTED TO DO SO AN INVESTIGATOR'S REPORT NOTES MR. RANGEL JASSO HADN'T RECEIVED ANY FORKLIFT TRAINING AND LACKED A DRIVER'S LICENSE AND A JUVENILE'S WORK PERMIT ACCORDING TO OFFICIAL SOURCES THE COMPANY DISPUTING THE OFFICIAL ACCOUNTS IS CONTESTING A TEN THOUSAND DOLLAR FEDERAL FINE FOR ALLEGEDLY PERMITTING A MINOR TO OPERATE A FORKLIFT AND A SIXTY FOUR THOUSAND EIGHT HUNDRED FIVE DOLLAR PENALTY FOR ALLEGED VIOLATIONS OF STATE HEALTH AND SAFETY REGULATIONS THE COMPANY AND TWO PRINCIPALS ALSO HAVE PLEADED NOT GUILTY IN A PORTLAND STATE COURT TO A TWO COUNT INDICTMENT STEMMING FROM THE ACCIDENT SEPARATELY THE COMPANY AGREED TO PAY EIGHTY THOUSAND DOLLARS TO SETTLE A STATE COMPLAINT ON CHILD LABOR AND OVERTIME VIOLATIONS MANY COMPANIES ESCAPE SCRUTINY ALTOGETHER CONGRESS EXEMPTS EMPLOYERS IN LOW HAZARD INDUSTRIES WITH TEN OR FEWER WORKERS FROM REGULAR OSHA INSPECTIONS OSHA IN PRACTICE ALSO EXEMPTS FROM REGULAR INSPECTIONS SMALL COMPANIES IN HIGHLY HAZARDOUS INDUSTRIES OTHER THAN CONSTRUCTION MOREOVER SMALL EMPLOYERS CITED FOR STANDARD VIOLATIONS ROUTINELY GET DISCOUNTS ON THEIR OSHA PENALTIES OFTEN OSHA STEPS IN ONLY AFTER A TRAGEDY LAKES ILLUSTRATED INCORPORATED A MOUNTAIN VERNON MISSOURI MAKER OF ELECTRONIC FISHING GEAR WAS FIRST INSPECTED IN NINETEEN NINETY TWO AFTER A PRESSURIZED FIFTY FIVE GALLON LUBRICATING DRUM EXPLODED AND KILLED A TWENTY EIGHT YEAR OLD TECHNICIAN WILLIAM N. COEN OSHA CITED THE COMPANY FOR NUMEROUS SERIOUS VIOLATIONS FORMER EMPLOYEES SAY WORKING CONDITIONS AT THE PLANT HAD BEEN UNSAFE FOR YEARS THEY RECALL EMPLOYEES USING OPEN CONTAINERS OF HAZARDOUS SOLVENTS FOR CLEANING PARTS POOR VENTILATION PILES OF BOXES BLOCKING AN EXIT AN OVERHEAD WEIGHT BEARING CABLE THAT OFTEN BROKE AND POORLY GROUNDED ELECTRICAL EQUIPMENT JEAN COATES A FORMER EMPLOYEE SAYS THE CONDITIONS CONTRASTED SHARPLY WITH THOSE AT BIG PLANTS WHERE SHE WORKED PREVIOUSLY SINCE THE ACCIDENT JOSEPH MEIRICK THE COMPANY'S OWNER SAYS IT HAS COMPLIED WITH OSHA REQUIREMENTS IT STARTED SAFETY TRAINING SET UP A SAFETY COMMITTEE AND AGREED TO PAY NINE THOUSAND DOLLARS IN REDUCED PENALTIES MR. MEIRICK ADMITS THAT BEFORE THE ACCIDENT HIS COMPANY DIDN'T SPEND AS MUCH TIME EFFORT OR MONEY ON SAFETY MEASURES AS IT SHOULD HAVE GETTING OUT NEW LINES OF FISHING GEAR TOOK PRIORITY HE SAYS EDWARD P. FOLDESSY DID COMPUTER ANALYSIS OF GOVERNMENT DATA FOR THIS ARTICLE WILL SYNTEX'S DIVIDEND GO UNDER THE KNIFE YIELD STARVED INVESTORS HAVE BEEN SNAPPING UP SHARES OF THE PALO ALTO CALIFORNIA DRUG COMPANY WHICH OFFERS A DIVIDEND YIELD OF SIX POINT EIGHT PERCENT FOR NOW ANALYSTS SAY THERE'S A STRONG CHANCE THE MOUTH WATERING YIELD WON'T LAST QUOTE I THINK THEY'LL PROBABLY CUT THEIR DIVIDEND SOMETIME OVER THE NEXT YEAR OR SO QUOTE SAYS JACK LAMBERTON A DRUG ANALYST WITH NATWEST SECURITIES WE WOULD ARGUE THAT THE CHANCE OF A DIVIDEND CUT IS FIFTY TO FIFTY SAYS WERTHEIM SCHRODER ANALYST JONATHAN GELLES EVEN FANS OF THE STOCK DON'T HOLD OUT A LOT OF HOPE THERE'S EVERY POSSIBILITY THAT THE DIVIDEND WILL BE REDUCED SAYS WARREN ISABELLE MANAGER OF THE PIONEER CAPITAL GROWTH FUND WITH TWO HUNDRED THIRTY MILLION DOLLARS IN ASSETS THE COMPANY ITSELF WON'T SAY WHETHER THE DIVIDEND IS SAFE AT A RECENT MEETING WITH ANALYSTS SYNTEX CHAIRMAN PAUL FREIMAN DECLINED TO SPECULATE ABOUT FUTURE DIVIDEND DECLARATIONS SAYING THAT THE DIVIDEND IS THE RESPONSIBILITY OF THE BOARD OF DIRECTORS SYNTEX ISN'T THE ONLY DRUG COMPANY THAT SOME THINK MAY CUT ITS DIVIDEND ANALYSTS SPECULATE THAT MARION MERRELL DOW AND UPJOHN COULD ALSO TRIM THEIR QUARTERLY PAYOUTS WE DON'T EVER SPECULATE ON FUTURE DECISIONS OF THAT SORT RESPONDS RICHARD JOHNSON A SPOKESMAN FOR MARION MERRELL DOW ENHANCING SHAREHOLDER VALUE THROUGH A COMBINATION OF STOCK PRICE APPRECIATION AND DIVIDEND YIELD WILL REMAIN ONE OF OUR TOP PRIORITIES SAYS UPJOHN SPOKESMAN JOHN LAMBRECHTS BUT AMONG HEALTH CARE COMPANIES SYNTEX IS THE MOST VULNERABLE TO A DIVIDEND CUT SAY ANALYSTS THAT DOESN'T AUGUR HAPPY TIMES FOR THE YIELD HUNGRY SMALL INVESTORS WHO HAVE BEEN BUYING SYNTEX SHARES QUOTE I THINK THERE ARE PLENTY OF PEOPLE WHO OWN THE STOCK WHO DON'T THINK THERE'S GOING TO BE A DIVIDEND CUT AND JUST AREN'T PAYING ATTENTION QUOTE SAYS NATWEST'S MR. LAMBERTON AND WHEN THEY CUT THE DIVIDEND I THINK THEY'LL CUT IT SO AGGRESSIVELY THAT THEY MAY SURPRISE EVEN THOSE WHO ARE EXPECTING A CUT MR. LAMBERTON THINKS THE COMPANY MIGHT CUT THE ONE DOLLAR AND FOUR CENT ANNUAL DIVIDEND IN HALF SO THAT IT GETS ALL THE BAD NEWS OUT OF THE WAY IN ONE FELL SWOOP THE WORST THING WOULD BE TO HAVE TO MAKE TWO DIVIDEND CUTS HE SAYS IF THEY HAD A FIFTY PERCENT DIVIDEND CUT I THINK YOU'D HAVE A THIRTEEN DOLLAR STOCK AND MAYBE LOWER SYNTEX CLOSED YESTERDAY AT FIFTEEN AND THREE EIGHTHS UNCHANGED MR. LAMBERTON CONCEDES THAT SYNTEX COULD MAINTAIN ITS DIVIDEND BY DIPPING INTO THE COMPANY'S CASH RESERVES AND DRAWING HEAVILY ON ITS CASH FLOW BUT THAT STRATEGY WOULD CARRY A STEEP PRICE IN TERMS OF SYNTEX'S FUTURE GROWTH THEY DO HAVE THE MONEY TO COVER THE DIVIDEND IF THEY REALLY WANT TO SAYS MR. LAMBERTON THE QUESTION IS WHAT ARE THEIR PRIORITIES THEY COULD MAINTAIN THEIR DIVIDEND BUT THEY'D BE UNDERINVESTING IN THE REST OF THE BUSINESS QUOTE MR. LAMBERTON FIGURES THAT SYNTEX HAS ENOUGH CASH FLOW TO COVER ITS DIVIDEND IN THE FISCAL YEAR ENDING IN JULY BUT HE FORECASTS THAT CASH FLOW WILL FALL SHORT OVER THE NEXT TWO FISCAL YEARS BEFORE RECOVERING IN THE FISCAL YEAR ENDING JULY NINETEEN NINETY SEVEN HE ATTRIBUTES THE CASH FLOW CRUNCH TO DECLINING SALES OF NAPROSYN AND ANAPROX SYNTEX'S TWO ARTHRITIC PAIN RELIEVERS THAT LOST PATENT PROTECTION ON DECEMBER TWENTY FIRST MR. LAMBERTON ESTIMATES THAT U. S. SALES OF THESE TWO PRODUCTS WHICH NOW FACE COMPETITION FROM GENERIC ALTERNATIVES ACCOUNTED FOR HALF OF SYNTEX'S EARNINGS IN THE NINETEEN NINETY THREE FISCAL YEAR IT'S VERY UNLIKELY THAT THE STOCK WILL RISE OF ITS OWN ACCORD MR. LAMBERTON SAYS THE RISK IN NOT OWNING SYNTEX IS THAT THEY GET TAKEN OVER BY ANOTHER COMPANY I THINK THAT'S UNLIKELY BUT A TAKEOVER IS WHAT SOME BULLS ARE BETTING ON THE REASON WE BOUGHT THE STOCK IS NOT FOR ITS LONG TERM PROSPECTS SAYS PIONEER'S MR. ISABELLE WE WERE CLEARLY LOOKING FOR A CONSOLIDATION PLAY HERE I DON'T THINK THIS IS A COMPANY WHOSE NAME YOU'LL SEE AS A STAND ALONE NAME FIVE YEARS FROM NOW QUOTE ANALYST DAVID SAKS HOWEVER ISN'T WILLING TO BET ON A TAKEOVER FOR TEN YEARS I'VE HEARD THAT STORY SAYS MR. SAKS OF GRUNTAL AND COMPANY THE REASON WHY YOU BUY A COMPANY IS BECAUSE YOU LIKE WHAT YOU SEE WHY BUY A COMPANY THAT'S GOT A CLEAR CUT DOWNWARD FINANCIAL OUTLOOK BECAUSE SYNTEX'S FUTURE EARNINGS ARE LIKELY TO BE WEAK MR. SAKS RECKONS THE STOCK IS A POOR INVESTMENT WHETHER OR NOT THE DIVIDEND IS CUT I THINK THE YIELD IS TEMPTING TO SOME HE SAYS BUT IF THE STOCK GOES DOWN FIVE PERCENT WHAT'S THE WORTH OF A SIX POINT EIGHT PERCENT DIVIDEND FIRST QUARTER OCTOBER THIRTY FIRST NINETEEN NINETY THREE IN THE SPIRIT OF THE SILLY BRITISH HEADMISTRESS WHO RECENTLY DECIDED THAT SHAKESPEARE'S QUOTE ROMEO AND JULIET QUOTE IS INAPPROPRIATE FOR HER STUDENTS BECAUSE IT'S A QUOTE TOTALLY HETEROSEXUAL STORY QUOTE THE AMERICAN BAR ASSOCIATION IS POISED TO ADOPT A POLITICALLY CORRECT SPEECH CODE FOR LAWYERS AT ITS MIDYEAR MEETING IN KANSAS CITY MISSOURI NEXT WEEK THE A. B. A. STANDING COMMITTEE ON ETHICS AND PROFESSIONAL RESPONSIBILITY WANTS TO AMEND THE MODEL RULES OF PROFESSIONAL CONDUCT TO PROHIBIT LAWYERS FROM EXPRESSING CERTAIN POINTS OF VIEW SPECIFICALLY THE PROPOSED RULE PROVIDES THAT IT IS PROFESSIONAL MISCONDUCT FOR A LAWYER TO KNOWINGLY MANIFEST BY WORDS OR CONDUCT IN THE COURSE OF REPRESENTING A CLIENT BIAS OR PREJUDICE BASED UPON RACE SEX RELIGION NATIONAL ORIGIN DISABILITY AGE SEXUAL ORIENTATION OR SOCIOECONOMIC STATUS THIS PROPOSAL VIOLATES NEARLY EVERY PRINCIPLE OF FREEDOM OF SPEECH UNDER THE CONSTITUTION IT RESTRICTS POLITICAL SPEECH AT THE VERY CORE OF THE FIRST AMENDMENT IT CENSORS SPEECH ON THE BASIS OF VIEWPOINT AND IT IS CHILLINGLY VAGUE AND OVERBROAD SUPPOSE SEVERAL ATTORNEYS ARE REPRESENTING CLIENTS AT THE CLOSING OF A BUSINESS TRANSACTION DURING A SHORT LULL IN THE MEETING ATTORNEY A ASKS TWO OF HIS COLLEAGUES WHAT THEY THINK OF A GAY RIGHTS LAW CURRENTLY BEFORE THE STATE LEGISLATURE ATTORNEY B. SAYS HE FAVORS THE LEGISLATION BECAUSE GAYS ARE AN OPPRESSED MINORITY AND ATTORNEY C. SAYS HE OPPOSES THE LEGISLATION BECAUSE HOMOSEXUALITY IS IMMORAL AND UNNATURAL WHEN I POSED THIS HYPOTHETICAL TO GEORGE KUHLMAN COUNSEL TO THE A. B. A. COMMITTEE THAT DRAFTED THE SPEECH CODE HE SAID THAT ATTORNEY C'S WORDS MIGHT BE A VIOLATION OF THE RULE ATTORNEY B'S STATEMENT WHICH IS THE POLITICALLY CORRECT ONE ACCORDING TO THE A. B. A. IS NOT A VIOLATION AS MR. KUHLMAN CONCEDED THE POTENTIAL REACH OF THE RULE IS PRACTICALLY LIMITLESS SUPPOSE THAT IN OUR HYPOTHETICAL THE ATTORNEYS ARE DISCUSSING ECONOMIC POLICY INSTEAD OF GAY RIGHTS IF ATTORNEY B. CONDEMNS TAX CUTS THAT FAVOR ONLY THE GREEDY RICH AND ATTORNEY C. COMPLAINS THAT WELFARE SUBSIDIZES THE IRRESPONSIBLE POOR BOTH OF THEM MIGHT FIND THEMSELVES IN HOT WATER FOR HAVING EXPRESSED BIAS ON THE BASIS OF SOCIOECONOMIC STATUS SUCH WILL BE THE RISKS OF PRACTICING LAW IN THE SENSITIVE NINETIES MOREOVER THE CONSEQUENCES FOR ATTORNEYS WHO EXPRESS THE WRONG OPINIONS ARE SIGNIFICANT UNDER THE NEW REGIME AS DAVID ISBELL CHAIRMAN OF THE A. B. A.'S STANDING COMMITTEE ON ETHICS AND PROFESSIONAL RESPONSIBILITY NOTED IN A LETTER TO THE HOUSE OF DELEGATES WHAT WE ARE SAYING IS THAT A FAILURE TO COMPLY WITH THAT POLICY SHOULD RESULT IN LAWYER SANCTIONS INCLUDING SUSPENSION FROM THE PRACTICE OF LAW THAT OUGHT TO GET THEIR ATTENTION LIKE MOST P. C. NONSENSE THE PROPOSED A. B. A. RULE IS WELL INTENDED WE CAN ALL AGREE THAT LAWYERS LIKE EVERYONE ELSE SHOULD STRIVE FOR CIVILITY AND TOLERANCE THIS IS PARTICULARLY TRUE WHEN LAWYERS PARTICIPATE IN JUDICIAL PROCEEDINGS BECAUSE OF THE SOCIETAL GOAL OF ENSURING FAIR AND IMPARTIAL TRIALS BUT THIS INTEREST CALLS FOR ONLY A NARROW RESTRICTION ON LAWYERS' SPEECH INDEED THE MODEL CODE OF JUDICIAL CONDUCT ALREADY PLACES UPON JUDGES THE DUTY TO REQUIRE LAWYERS PRACTICING BEFORE THEM TO REFRAIN FROM EXPRESSING BIAS OR PREJUDICE AGAINST PARTIES WITNESSES COUNSEL OR OTHERS THE PROPOSED A. B. A. SPEECH CODE SWEEPS FAR BEYOND THE COURTROOM AND USES A HATCHET TO PERFORM SURGERY THAT CALLS FOR A LASER SINCE ATTORNEYS SPEND MOST OF THEIR DAY AT THE OFFICE QUOTE REPRESENTING QUOTE CLIENTS THE RULE OBVIOUSLY REGULATES AND CHILLS A GREAT DEAL OF SPEECH OF THE TYPICAL LAWYER WE CAN SHRUG AND LAUGH AT THE HEADMISTRESS WHO BANNED THE BARD FOR HIS HETEROSEXISM BUT IF THE A. B. A. WISHES TO BE TAKEN MORE SERIOUSLY IT WOULD DO WELL TO REAFFIRM ITS COMMITMENT TO FREEDOM OF SPEECH BY REJECTING THE PROPOSED LAWYER SPEECH CODE AS ALWAYS THE PROPER RESPONSE TO OPINIONS ONE FINDS OFFENSIVE IS COUNTERSPEECH NOT CENSORSHIP SADLY THIS IS A LESSON THAT THAT THE A. B. A. IS IN DANGER OF FORGETTING MR. DUNCAN IS A PROFESSOR AT THE UNIVERSITY OF NEBRASKA COLLEGE OF LAW IN A MOVE THAT WILL SHARPEN COMPETITION IN THE HOT REALM OF EMERGING MARKETS MUTUAL FUNDS THE ONE HUNDRED THIRTY ONE BILLION DOLLAR FUND COMPANY VANGUARD GROUP IS PREPARING TO LAUNCH A CHEAPER VERSION IT'S CALLED AN EMERGING MARKETS INDEX FUND AND IT IS SURE TO STIR UP THE MUTUAL FUND INDUSTRY THAT'S BECAUSE VANGUARD'S NEW FUND WILL UNDOUBTEDLY COST FAR LESS TO RUN THAN MOST OF THE EXISTING FUNDS TRYING TO BEAT THE MARKETS IN EXOTIC COUNTRIES FROM ARGENTINA TO THAILAND AS AN INDEX FUND VANGUARD'S NEW ENTRY WILL SCOOP UP A BASKET OF STOCKS IN FAST GROWING DEVELOPING NATIONS THEN HOLD THEM IT'S A WAY TO KEEP TRADING AND EXPENSES TO A MINIMUM INDEX FUNDS BUY THE SAME STOCKS AS THOSE IN A PARTICULAR STOCK MARKET INDEX AND THEN SIMPLY HANG ON FOR THE RIDE THE VANGUARD FUND COULD PROVE POPULAR MANY INVESTORS BELIEVE THAT TRYING TO BEAT STOCK MARKETS IS A LOSING GAME FOR ALL BUT A FEW MONEY MANAGERS ASKED ABOUT THE NEW FUND WHICH WAS DISCLOSED BY PEOPLE WITH TIES TO THE FUND INDUSTRY VANGUARD SPOKESMAN BRIAN MATTES SAID QUOTE WE HAVE FILED NOTHING ALONG THOSE LINES WHATSOEVER I CANNOT COMMENT ANY FURTHER ABOUT FUTURE PLANS WITH RESPECT TO ANY FUND OFFERING BUT PEOPLE IN THE FUND INDUSTRY EXPECT THE NEW FUND WILL INVEST LARGELY IN STOCKS IN THE MORGAN STANLEY CAPITAL INTERNATIONAL EMERGING MARKETS FREE INDEX SOME LOOK FOR A FEW ADDITIONS SUCH AS SINGAPORE WHICH STRADDLE THE LINE BETWEEN MATURE AND DEVELOPING MARKETS THE NEW FUND OFFERING WILL BRING NORMALLY CAUTIOUS VANGUARD INTO SPECULATIVE TERRAIN MANY INVESTMENT ADVISERS RECOMMEND THAT LONG TERM PORTFOLIOS HOLD A LEAVENING OF EMERGING MARKETS BUT THESE MARKETS ARE SUBJECT TO WILD ZIGZAGS IN PRICE TAKE MALAYSIA ONE OF THE BEST STOCK MARKETS IN THE WORLD LAST YEAR IT HAS SINCE BECOME A SUBMERGING MARKET LOSING FIFTEEN POINT ONE PERCENT IN DOLLAR TERMS IN JANUARY ACCORDING TO THE DOW JONES WORLD STOCK INDEX AS RECENTLY AS LAST YEAR VANGUARD EXECUTIVES TALKED ABOUT THE RISKS OF MUTUAL FUNDS IN EMERGING MARKETS IF THERE'S A PANIC AND HOLDERS FLEE FUND MANAGERS CAN BE FORCED TO SELL STOCKS INDISCRIMINATELY HURTING THE REMAINING FUND SHAREHOLDERS MOREOVER BROKERAGE AND TRADING COSTS TEND TO BE MUCH HIGHER IN EMERGING MARKETS THAN IN THE U. S. BUT TRANSACTION COSTS MAY TURN OUT TO BE AN ADVANTAGE FOR AN INDEX FUND WHOSE BUY AND HOLD STRATEGY ELIMINATES HEAVY TRADING U. S. INVESTORS HAVE BEEN POURING MONEY INTO EMERGING MARKETS IN THE NINE MONTHS THROUGH SEPTEMBER U. S. INVESTORS BOUGHT EIGHT BILLION DOLLARS MORE THAN THEY SOLD OF EMERGING MARKETS STOCKS AND MUTUAL FUNDS ACCORDING TO THE SECURITIES INDUSTRY ASSOCIATION THIS ONSLAUGHT BEAT THE PRIOR FULL YEAR RECORD OF FIVE POINT SIX BILLION DOLLARS SET IN NINETEEN NINETY TWO STOCK FUNDS INVESTING IN BROADLY DIVERSIFIED EMERGING MARKETS HAD A TOTAL RETURN INCLUDING DIVIDENDS OF SIXTY SIX POINT ONE OH PERCENT ON AVERAGE LAST YEAR ACCORDING TO LIPPER ANALYTICAL SERVICES WHICH TRACKS MUTUAL FUND PERFORMANCE BUT THE MORGAN STANLEY EMERGING MARKETS INDEX DID EVEN BETTER WITH A GAIN OF SEVENTY FOUR POINT EIGHT FOUR PERCENT IN NINETEEN NINETY THREE BEATING SEVEN OF THE TEN OPEN END FUNDS WITH FULL YEAR RECORDS TRACKED BY LIPPER THE LIPPER DATA DON'T INCLUDE PUBLICLY TRADED OR CLOSED END FUNDS FUND GROUPS ARE TRIPPING OVER THEMSELVES INTRODUCING NEW FUNDS LAST YEAR THERE WERE THIRTY NINE REGISTRATIONS FILED WITH REGULATORS FOR OPEN END AND CLOSED END EMERGING MARKET MUTUAL FUNDS ACCORDING TO MUTUAL FUND ADVANCE A WASHINGTON D. C. NEWSLETTER AND A UNIT OF DOW JONES AND COMPANY PUBLISHER OF THIS NEWSPAPER ONLY TWELVE REGISTRATIONS WERE FILED IN NINETEEN NINETY TWO ALMOST ALL EMERGING MARKETS STOCK FUNDS ARE ACTIVE MANAGERS MEANING THAT THEY DO RESEARCH TO TRY TO PICK BETTER THAN AVERAGE STOCKS DIVERSIFIED EMERGING MARKETS FUNDS AS OPPOSED TO REGIONAL ASIAN OR LATIN AMERICAN FUNDS TRACKED BY LIPPER LAST YEAR COST ONE DOLLAR AND NINETY SIX CENTS A YEAR TO RUN FOR EVERY ONE HUNDRED DOLLARS IN FUND ASSETS AT THE HIGH END FIDELITY EMERGING MARKETS CHARGED TWO DOLLARS AND SIXTY CENTS PER ONE HUNDRED DOLLARS IN ASSETS ALMOST DOUBLE THE ONE DOLLAR AND THIRTY FOUR CENT AVERAGE FOR ALL DIVERSIFIED STOCK FUNDS INVESTING PRIMARILY IN THE U. S. INVESTING OVERSEAS COSTS MORE THAN INVESTING IN THE U. S. BUT THE FORTHCOMING VANGUARD FUND WILL MOST LIKELY COST CONSIDERABLY LESS THAN EVEN THE AVERAGE U. S. STOCK FUND TO RUN THE EXACT COST ISN'T KNOWN BUT IT PROBABLY WON'T BE AS CHEAP AS THE THIRTY TWO CENTS PER ONE HUNDRED DOLLARS IN ASSETS CHARGED BY VANGUARD'S PACIFIC INDEX FUND MOREOVER ALTHOUGH THE NEW FUND PROBABLY WON'T IMPOSE A SALES CHARGE OR LOAD IT WILL LIKELY CHARGE A ONE TIME PORTFOLIO TRANSACTION FEE TO NEW INVESTORS THAT FEE ISN'T TECHNICALLY A LOAD AS IT DOESN'T GO TO VANGUARD IT GETS PAID TO THE FUND ITSELF TO COMPENSATE EXISTING SHAREHOLDERS FOR THE COSTS OF BUYING STOCK IN THINLY TRADED MARKETS VANGUARD CHARGES A ONE PERCENT FEE FOR ITS EXISTING INTERNATIONAL INDEX FUNDS AND IT'S CONCEIVABLE THAT THE FEE MIGHT BE HIGHER FOR THE EMERGING MARKETS FUND SOME INSTITUTIONS ALREADY INVEST IN EXOTIC LOCALES STATE STREET BANK RUNS INDEXED EMERGING MARKET ACCOUNTS FOR INSTITUTIONAL INVESTORS AND IT CHARGES FIFTY CENTS PER ONE HUNDRED DOLLARS IN ASSETS FOR THOSE WITH AT LEAST FIVE MILLION DOLLARS TO INVEST STATE STREET HAS FILED TO BRING OUT A QUASI INDEX MUTUAL FUND FOR SMALL INVESTORS SEVEN SEAS EMERGING MARKETS BUT ITS PERFORMANCE WILL DIFFER FROM INDEX RETURNS BECAUSE THE MANAGER WILL TRY TO PICK THE COUNTRIES WITH THE BEST OUTLOOKS RATHER THAN INVESTING IN THEM BY THEIR WEIGHT IN AN INDEX DIMENSIONAL FUND ADVISERS A BIG INDEX FUND MANAGER RUNS AN EMERGING MARKETS FUND FOR AN INSTITUTIONAL INVESTOR THE FUND STAYS OUT OF CERTAIN EMERGING MARKETS WHERE TRADING APPEARS TO BE RIGGED AGAINST FOREIGN INVESTORS SAYS REX SINQUEFIELD CHIEF INVESTMENT OFFICER AT D. F. A. WITHOUT BEING SPECIFIC HE SAID IN SOME MARKETS QUOTE BROKERS ARE JUST WAITING FOR THE NEXT VICTIM THERE ARE A LOT OF GAMES THAT CAN BE PLAYED AT YOUR EXPENSE EMERGING MARKET STOCK FUNDS HAD A GREAT YEAR LAST YEAR BUT MANY OF THEM FAILED TO BEAT THE MORGAN STANLEY INDEX A COMMON INDEX OF EMERGING MARKETS BELOW TOTAL RETURNS INCLUDING PRICE MOVEMENTS AND DIVIDENDS FOR FUNDS IN EXISTENCE DURING ALL OF NINETEEN NINETY THREE GEORGIA PACIFIC CORPORATION SAID IT WILL SPEND ONE POINT SIX BILLION DOLLARS DURING THE NEXT TWO YEARS TO UPGRADE AND ENHANCE ITS WOOD PRODUCTS PULP AND PAPER OPERATIONS THE ATLANTA FOREST PRODUCTS COMPANY SAID IT PLANS TO INVEST MOST OF THE MONEY IN ITS WOOD PRODUCTS BUSINESSES ABOUT NINE HUNDRED MILLION DOLLARS WILL BE SPENT THIS YEAR WITH THE FUNDS COMING FROM OPERATIONS AND ASSET SALES IN NINETEEN NINETY THREE CAPITAL SPENDING TOTALED FOUR HUNDRED SIXTY SEVEN MILLION DOLLARS ANALYSTS GENERALLY APPLAUDED THE NEWS SAYING NOW IS AN IDEAL TIME FOR THE COMPANY TO MAKE MORE CAPITAL INVESTMENTS QUOTE WITH THE TIMBER SHORTAGE IN THE PACIFIC NORTHWEST THERE ARE OPPORTUNITIES FOR COMPANIES LIKE GEORGIA PACIFIC WITH A LARGE SOUTHERN BASE TO PICK UP SOME OF THE SLACK AND DO IT PROFITABLY QUOTE SAID CHIP DILLON OF SALOMON BROTHERS A FEDERAL COURT JUDGE RULED YESTERDAY THAT GENERAL MOTORS CORPORATION MUST RESTORE RETIREE HEALTH CARE BENEFITS THAT WERE REDUCED OR ELIMINATED IN THE NINETEEN EIGHTIES THE RULING BY JUDGE JOHN FEIKENS IN U. S. DISTRICT COURT AFFECTS SOME FORTY FIVE THOUSAND RETIREES A G. M. SPOKESMAN SAID THE COMPANY WAS CONSIDERING AN APPEAL AND THAT IT WAS QUOTE PREMATURE TO SPECULATE QUOTE ABOUT THE POSSIBLE COSTS OF THE RULING WE BELIEVE WE DO HAVE THE RIGHT TO AMMEND MODIFY OR CHANGE OUR BENEFITS PLAN RICHARD F. O'BRIEN G. M.'S VICE PRESIDENT OF CORPORATE PERSONNEL SAID IN A PREPARED STATEMENT MR. O'BRIEN CALLED G. M. BENEFITS AMONG THE BEST IN ALL OF INDUSTRY THE SUIT CHARGED THAT THE DETROIT COMPANY BREACHED CONTRACTUAL OBLIGATIONS TO PROVIDE LIFETIME HEALTH BENEFITS TO RETIREES G. M. STOCK ROSE FIFTY CENTS OR ZERO POINT EIGHT PERCENT TO CLOSE AT SIXTY ONE DOLLARS AND FIFTY CENTS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SINCE ITS OPENING A YEAR AGO THE MUSEUM OF TOLERANCE IN WEST LOS ANGELES HAS ATTRACTED NEARLY THREE HUNDRED THOUSAND VISITORS AT SEVEN DOLLARS AND FIFTY CENTS PER ADULT HEAD IT HAS ALSO ATTRACTED ALONG WITH PREDICTABLE PRAISE FOR ITS GOOD INTENTIONS AND INGENIOUS TECHNOLOGY CRITICISM FOR WHAT SOME SEE AS A TRIVIALIZING QUOTE DISNEYLAND QUOTE APPROACH TO ITS THREE CENTRAL THEMES RACIAL PREJUDICE GENERALLY ANTI SEMITISM SPECIFICALLY AND THE NAZIS' ATTEMPT TO EXTERMINATE ALL THE JEWS OF EUROPE THE MUSEUM EXPERIENCE IS DESIGNED SO THAT ONE GRADUATES FROM THE FIRST THEME TO THE SECOND TO THE THIRD BUT IT IS CLEARLY THE THIRD THE HOLOCAUST THAT DOMINATES THE VISITOR'S TIME AND ATTENTION AS IT DID THE INTENTIONS OF THE MUSEUM'S CREATORS AT THE SIMON WIESENTHAL CENTER NEXT DOOR THE MUSEUM'S HEBREW NAME IS BEIT HASHOAH OR HOUSE OF THE HOLOCAUST THE CARPING JUDGMENTS HAVE COME FROM CRITICS WHO FIND THE LOS ANGELES MUSEUM'S APPROACH VULGAR AND KITSCHY BIGOTRY SOUPED UP FOR THE M. T. V. GENERATION IT WAS CALLED BY U. S. NEWS AND WORLD REPORT DESPITE SOME DUBIOUS AUDIOVISUAL TECHNIQUES THE MUSEUM'S MISSION SHOULD NOT BE DISMISSED BY SUCH SIMPLE INSULTS IN THE DARK STARK CONCRETE FINAL BUNKER WHICH INEVITABLY SUGGESTS A GAS CHAMBER VISITORS STAND OR SIT ON A HARD SLAB TO SEE AND HEAR INDIVIDUAL HORROR STORIES TOLD ON EIGHT WALL MOUNTED MONITORS AS THE STORIES END DOORS OPEN INTO A WELCOME WANLY HOPEFUL LIGHT THIS GRIM CHAMBER HAS ROOM FOR ABOUT TWENTY FIVE PEOPLE AND TOURS OF THE MUSEUM ARE ORGANIZED IN GROUPS OF THIS SIZE RABBI MARVIN HIER THE FOUNDING DIRECTOR OF BOTH THE SIMON WIESENTHAL CENTER AND ITS MUSEUM BELIEVES THAT FORCED TOURS ARE ESSENTIAL IF THE INSTITUTION IS TO SUCCEED IN ITS EDUCATIONAL MISSION THIS MUSEUM IS NOT DESIGNED FOR THE KNOWLEDGEABLE HE SAYS NOR FOR THE CONVERTED LEFT TO THEMSELVES RABBI HIER FEARS VISITORS MIGHT WANDER ABOUT AT WILL AND MISS ESSENTIAL LESSONS AS PART OF THIS INCULCATION RABBI HIER AND HIS DESIGNERS KARL KATZ AND JAMES GARDNER CREATED DISPLAYS STRESSING JEWISH RESISTANCE TO HITLER TO COUNTER THE DEGRADING IMAGE OF LAMBS TO THE SLAUGHTER AND MADE USE OF FREQUENT CITATIONS FROM NAZI DOCUMENTS TO CRUSH THE IGNORANT OR MALICIOUS CLAIMS OF THE HOLOCAUST DENIERS AFTER EACH GROUP OF TWENTY FIVE HAS GATHERED AN ATTENDANT LEADS IT DOWN A SPIRAL RAMP TO THE BOTTOM OF THE NINETY FOOT HIGH CENTRAL LIGHT WELL WHICH IS FILLED WITH AN ABSTRACT SCULPTURE SUGGESTING FENCES AND GATES AND STUDDED WITH PHOTOGRAPHS OF AUSCHWITZ VICTIMS AT THE BOTTOM OF THE RAMP VISITORS ARE LED INTO THE FLASHY MULTIMEDIA QUOTE TOLERANCENTER QUOTE WHERE THE GUIDE LEAVES THEM FROM HERE ON THEY ARE LED BY RECORDED VOICES AND AUTOMATICALLY OPENING DOORS ON A TIMED TOUR ORGANIZED BY SYNCHRONIZED COMPUTERS EACH GROUP MOVES PERISTALTICALLY ALONG LOOKING AT THE SAME DISPLAYS LISTENING TO THE SAME RECORDED DIALOGUE THE WAY BOATLOADS OF TOURISTS IN DISNEYLAND ARE LED PAST REGULARLY REPEATING ANIMATED TABLEAUX A FEW ATTEMPTS HAVE BEEN MADE TO CONJURE UP ARCHITECTURALLY THE STAGES THAT LED TO THE GAS OVENS SHABBY BRICK WALLS LIKE THOSE OF THE WARSAW GHETTO A REPLICA OF THE GATES OF AUSCHWITZ LEADING TO DARK TUNNELS MARKED ABLE BODIED AND CHILDREN AND OTHERS HOWEVER UNSETTLING THESE STRIKE ME AS SOMEWHAT STAGEY LIKE THE ENTRY DOORS LABELED PREJUDICED AND UNPREJUDICED THE LATTER IS ALWAYS LOCKED OR THE MOCKUP OF A NINETEEN THIRTIES BERLIN STREET TOUR GROUPS PASS THROUGH IN ORDER TO SEE MEIN KAMPF IN A BOOKSTORE WINDOW AND NAZI POSTERS ON THE WALL TO OVERHEAR THE BIGOTED CONVERSATIONS OF GRAY MANNEQUINS WHO REPRESENT TYPICAL BERLINERS AT A COFFEE HOUSE ONE WAY TO JUDGE THE MUSEUM IS TO COMPARE IT WITH ITS IMMENSELY POPULAR WASHINGTON COUNTERPART WHICH OPENED TWO MONTHS LATER AND COST THREE TIMES AS MUCH THE VISITOR'S PRIMARY EXPERIENCE OF THE NEW U. S. HOLOCAUST MEMORIAL MUSEUM IN WASHINGTON IS LIKELY TO BE THAT OF ARCHITECT JAMES I. FREED'S AWESOME BUILDING ITSELF WHICH INTENTIONALLY EVOKES THE MATERIALS FORMS AND EMOTIONAL WEIGHT OF NAZI CONCENTRATION CAMPS WITHIN ITS EXPRESSIVE SPACES IS AN OVERWHELMING COLLECTION OF ARTIFACTS DOCUMENTS AND PHOTOGRAPHS THE CLOTHING AND POSSESSIONS OF VICTIMS GATES COBBLESTONES RECONSTRUCTED BARRACKS A BOXCAR AN OVEN THE LOS ANGELES MUSEUM DEPENDS ON NEITHER ARCHITECTURE NOR ARTIFACTS FOR ITS IMPACT FROM THE MOMENT YOU DESCEND INTO THE UNDERGROUND PARKING LEVELS YOU SCARCELY NOTICE THAT THERE IS ANY ARCHITECTURE UNTIL YOU ENTER THE OMINOUS FINAL ROOM A SMALL SAMPLING OF THE MUSEUM'S COLLECTION OF HOLOCAUST RELATED OBJECTS IS CURRENTLY ON DISPLAY AND WILL EVENTUALLY BE ENLARGED BUT MORE IMPORTANT THAN EITHER THE BUILDING OR ITS COLLECTIONS IS A SERIES OF CLEVER REFINEMENTS IN INFOTAINMENT TECHNOLOGY WHICH SEEMS QUITE AT HOME IN LOS ANGELES RABBI HIER'S GOAL WAS TO CREATE A PERMANENT PERSUASIVE AND LIVING REPLACEMENT FOR THE LAST GENERATION OF HITLER ERA SURVIVORS NOW RAPIDLY DYING OUT IN PARTICULAR HE WANTED TO FIND A WAY TO PASS THE WORD ALONG TO T. V. TRAINED CHILDREN WHO ENTER AT A GREATLY REDUCED RATE FOR WHOM THE NAZI ERA MAY SEEM AS REMOTE AS THE JURASSIC IN THEIR EAGERNESS TO REACH CHILDREN WITH TALKING PUPPETS FLASHY VIDEOS AND POP ICONS HOWEVER THE L. A. MUSEUM DESIGNERS MAY BE UNDERSHOOTING SOME ADULTS MOST OF THE EXAMINE YOUR CONSCIENCE GAMES IN THE TOLERANCENTER A SORT OF POLITICALLY CORRECT VIDEO ARCADE SEEM TO ME MORE HEAVY HANDED THAN USEFULLY PROVOCATIVE LIKE MANY CALIFORNIAN VISITORS I SPENT CONSIDERABLE TIME RELIVING THE NINETEEN NINETY TWO RIOTS BY MEANS OF VIDEOTAPED FOOTAGE ONE IS PERMITTED AT INDIVIDUAL STATIONS TO SELECT CUT MIX FREEZE AND JUDGE A SHORT SPLIT SCREEN FILM ON THE NINETEEN SIXTIES CIVIL RIGHTS STRUGGLE BY ORLANDO BAGWELL CO CREATOR OF QUOTE EYES ON THE PRIZE QUOTE IS THE STRONGEST SINGLE ELEMENT OF THE PRE HOLOCAUST SECTION DISPLAYS AFTER THAT I FOUND MYSELF RESISTING MANY OF THE OVERSIMPLIFIED HISTORY LECTURES AND FICTIONAL RESTAGINGS OF EVENTS SOMETIMES PRESENTED THROUGH TALKING SHOP WINDOW DIORAMAS YET I RESPONDED WITH UNDIMINISHED HORROR TO EYEWITNESS ACCOUNTS AND PHOTOS OR FILMS FROM THE NINETEEN THIRTIES AND FORTIES BUT THEN AS RABBI HIER POINTS OUT HIS MUSEUM WAS NOT INTENDED FOR OVER EDUCATED MIDDLE AGED CRITICS LIKE ME THE SEQUENCING OF EXHIBITS IMPLIES A DIRECT LINK BETWEEN THE KIND OF CASUAL OFFHAND STEREOTYPING IRONICALLY DRAMATIZED IN THE POP TOLERANCENTER AND THE NAZIS' WILLFUL SLAUGHTER OF SIX MILLION JEWS I GET THE POINT BUT ON THE WHOLE THIS SEEMS TO ME A PRETTY WIDE RHETORICAL STRETCH I DOUBT THAT MANY PEOPLE LEAVE THE MUSEUM VOWING TO AVOID MAKING OFFENSIVE ASSUMPTIONS OR GENERALIZATIONS ABOUT PEOPLE UNLIKE THEMSELVES BECAUSE THEY HAVE BEEN PERSUADED BY A SERIES OF AUDIOVISUAL DISPLAYS THAT SUCH IDEAS AND REMARKS ARE LIKELY TO LEAD TO MASS EXTERMINATION ON THE SECOND FLOOR OF THE MUSEUM OF TOLERANCE AFTER THE TIMED TOUR YOU ARE INVITED AS YOU ARE IN WASHINGTON TO SIT AND COMMUNICATE WITH ONE OF THIRTY INTERACTIVE COMPUTER MONITORS TO ASK THEM SET QUESTIONS ABOUT THE NAZIS AND THE JEWS AND RECEIVE IN REPLY SAMPLES FROM A HUGE ARRAY OF DATA STORED ON C. D. ROM DISKS IN THE FORM OF STILL AND MOVING PICTURES MAPS MUSIC TEXTS AND STATISTICS THE RECENT EARTHQUAKE LEFT THE MUSEUM UNHARMED MAKING IT STILL POSSIBLE THAT UP TO A THOUSAND OR MORE PEOPLE A DAY IN LOS ANGELES ARE BECOMING IF NOT NECESSARILY LESS INTOLERANT OF THEIR FELLOW CITIZENS AT LEAST LESS IGNORANT ABOUT THE HOLOCAUST THAN THEY WERE BEFORE IF IT TAKES HOLLYWOOD GLITZ TO ACCOMPLISH THAT HOORAY FOR HOLLYWOOD MR. LITTLEJOHN IS A NOVELIST CRITIC AND PROFESSOR OF JOURNALISM AT THE UNIVERSITY OF CALIFORNIA BERKELEY NOVA INDUSTRIAL HOLDINGS LIMITED OF HONG KONG A LEADING IMPORTER OF WOOL INTO CHINA WAS ACQUIRED BY A TINY COLORADO SOFTWARE CONCERN FOR STOCK VALUED AT SIXTY TWO POINT FOUR MILLION DOLLARS THOUGH GENERATION FIVE TECHNOLOGY INCORPORATED IS TECHNICALLY THE ACQUIRING COMPANY IT IS BEING SWALLOWED UP BY THE MUCH LARGER NOVA WHICH WILL ACCOUNT FOR MOST OF THE OPERATIONS OF THE COMBINED COMPANY IN ADDITION TO IMPORTING WOOL INTO CHINA NOVA EXPORTS INDUSTRIAL CHEMICALS AND OTHER GOODS FROM CHINA TO ELSEWHERE IN ASIA AND TO AFRICA SAID CHARLES HAWLEY CHIEF EXECUTIVE OFFICER OF WESTMINSTER BASED GENERATION FIVE HE SAID NOVA ALSO PLANS TO START MAKING MOPEDS IN CHINA FOR SALE THERE IN NINETEEN NINETY THREE NOVA HAD UNAUDITED EARNINGS OF TEN POINT TWO MILLION DOLLARS ON SALES OF ONE HUNDRED THIRTY SEVEN MILLION DOLLARS GENERATION FIVE SAID IN THE THIRD QUARTER OF NINETEEN NINETY THREE GENERATION FIVE POSTED A LOSS OF THREE HUNDRED SEVENTY NINE THOUSAND NINE HUNDRED DOLLARS OR TWENTY FOUR CENTS A SHARE ON REVENUE OF FOUR HUNDRED ELEVEN THOUSAND FIVE HUNDRED THIRTEEN DOLLARS A FEDERAL DISTRICT COURT WILL SOON BE DECIDING WHETHER A PLAN DEVISED TO PRESERVE THE FAMOUSLY ALL MALE CHARACTER OF THE VIRGINIA MILITARY INSTITUTE WHILE PROVIDING SEPARATE BUT EQUIVALENT MILITARY EDUCATION FOR WOMEN WILL BE ACCEPTABLE THE WOMEN IN QUESTION WOULD BE STUDENTS OF MARY BALDWIN COLLEGE AN ALL WOMEN'S INSTITUTION IN NEARBY STAUNTON BEYOND VMI THOUGH THE COURT'S DECISION WILL HAVE AN IMPACT ON OTHER LARGER ISSUES AMONG THEM THE MATTER OF WHETHER GENDER SEGREGATION IS AN OFFENSE EQUAL TO RACIAL SEGREGATION THE SUPREME COURT HASN'T YET RULED ON THIS RICH QUESTION BUT THE TIME MAY BE APPROACHING VMI'S LEGAL TROUBLES BEGAN IN NINETEEN NINETY WHEN IT REFUSED TO ADMIT A FEMALE APPLICANT WHICH SWITCHED ON THE PROGRAMMED WRATH OF JUSTICE DEPARTMENT ENFORCERS WHO CHARGED THE STATEFINANCED SCHOOL WITH DISCRIMINATION LAST MAY THE U. S. SUPREME COURT UPHELD AN APPEALS COURT RULING THAT VMI COULD ONLY RETAIN ITS ALL MALE STATUS IN TWO WAYS EITHER BY BECOMING A PRIVATE INSTITUTION OR BY PROVIDING A SEPARATE BUT PARALLEL VMI EDUCATION FOR WOMEN ACCORDINGLY A PLAN WAS CONCEIVED BY ADMINISTRATORS AND FACULTY AT ALL WOMEN MARY BALDWIN A NEW PROGRAM IN CONJUNCTION WITH VMI WOULD BE CREATED FOR MARY BALDWIN STUDENTS WITH HEAVY EMPHASIS ON LEADERSHIP AND DISCIPLINE THE PROGRAM WOULD BE FINANCED IN PART BY A SIX POINT NINE MILLION DOLLAR GRANT FROM VMI ALUMNI IT PROVIDES FOR R. O. T. C. JOINT EXERCISES WITH VMI MILITARY SCIENCE COURSES TO BE TAUGHT BY VMI INSTRUCTORS USE OF VMI FACILITIES RIGOROUS PHYSICAL TRAINING AN HONOR CODE AND MORE OF THE KIND THE STATE WOULD PROVIDE MARY BALDWIN WITH THE SAME FUNDING PER CADET THAT VMI GETS IT WAS TO BE EXPECTED THAT THIS ENTERPRISING AND SANE PLAN WOULD PROVOKE FIERCE OPPOSITION FROM WOMEN'S RIGHTS IDEOLOGUES WHO SEE THE DESTRUCTION OF VMI'S ALL MALE TRADITION AS JUST ONE MORE NECESSARY STEP IN THE PERPETUAL MARCH TO HIS CREDIT THEN GOVERNOR DOUGLAS WILDER A DEMOCRAT WAS AMONG THE FIRST TO ENDORSE THE PLAN DEVELOPED LAST SEPTEMBER AND ALSO TO RECOGNIZE ITS KEY VIRTUE THIS WAS THE FACT THAT IT WAS A PLAN THAT IN THE GOVERNOR'S WORDS QUOTE RECOGNIZED THE PHYSIOLOGICAL AND PSYCHOLOGICAL DIFFERENCES BETWEEN MEN AND WOMEN QUOTE TO BE SURE THERE ARE ENOUGH WOMEN CAPABLE OF SURVIVING THE RIGORS OF CADET LIFE AT VMI THE ILLUSTRIOUS MILITARY SCHOOL WHERE STONEWALL JACKSON ONCE TAUGHT PHILOSOPHY AND WHOSE MOST FAMOUS GRADUATE IN THIS CENTURY WAS ONE GEORGE C. MARSHALL STILL IT IS NO SURPRISE THAT THE EDUCATORS WHO CONCEIVED THE PROPOSED MARY BALDWIN PROGRAM DECIDED IT WOULD BE UNNECESSARY TO EMULATE CERTAIN OF THE MORE DISTINCTIVE FEATURES OF LIFE AT VMI FIRST YEAR VMI STUDENTS FOR EXAMPLE CAN LOOK FORWARD TO WALKING THE FAMOUS RAT LINE THAT IS ADHERING TO A RIGID IMAGINARY LINE WHILE IN THE BARRACKS MARCHING DOUBLE TIME UP AND DOWN STAIRS EARLY MORNING WAKEUP SUMMONSES TO SWEAT PARTIES PUSH UPS AND OTHER HEAVY DUTY FUN AND SUCH CREATORS OF THE MARY BALDWIN PLAN CONCLUDED THAT THIS SORT OF ADVERSARIAL TRAINING WASN'T LIKELY TO BE PRODUCTIVE WITH WOMEN HOWEVER CHERISHED A TRADITION IT WAS AT VMI IN ITS REASONABLENESS AND INTELLIGENCE THE VMI MARY BALDWIN PLAN REPRESENTS A KIND OF SOLUTION THAT DOESN'T COME ALONG ALL THAT OFTEN IN OUR NOISY POLITICAL TIMES IT'S PROBABLY HOPELESS TO TRY TO PERSUADE THE SORT OF TRUE BELIEVERS WHO WANT THE VMI TO BE FORCED TO ADMIT WOMEN AS HAS JUST HAPPENED TO THE CITADEL IN SOUTH CAROLINA MARY BALDWIN'S SOLUTION MUST NOT PASS THE ARGUMENT GOES LEST THE OFFENDING INSTITUTION BE ALLOWED TO PERPETUATE THE OLD BOY NETWORK EVERYONE ELSE NOT LIVING FULL TIME ON THIS PARTICULAR RAMPART HOWEVER MIGHT WANT TO CONSIDER SOME OF THE COMPLICATIONS THAT MAY ENSUE IF THE LEGAL CAMPAIGN TO UNDO THE CHARACTER OF THE NATION'S OLDEST MILITARY COLLEGE SUCCEEDS A COURT RULING THAT VMI MUST ACCEPT WOMEN WOULD BE BAD NEWS NOT ONLY FOR THAT SCHOOL BUT FOR THE FUTURE OF ALL WOMEN'S AND POSSIBLY ALL BLACK COLLEGES THAT RECEIVE STATE FUNDS DOCTOR CYNTHIA TYSON THE PRESIDENT OF MARY BALDWIN COLLEGE NOTES THAT HER SUPPORT FOR THE JOINT VENTURE WITH VMI IS LARGELY DUE TO HER CERTAINTY WHICH MANY SHARE THAT WHAT IS AT STAKE IN THE VMI CASE IS NOTHING LESS THAN THE SURVIVAL OF THE SINGLE SEX COLLEGE WE WOULD ADD TO THAT A CONSIDERATION THAT IS IN OUR VIEW AN EVEN MORE IMPORTANT MATTER NAMELY WHETHER REASON AND SENSE CAN PREVAIL AGAINST THE CLAMOR OF FANATICS JUST TEN DAYS AFTER STARTING A SERIES OF TELEVISION ADVERTISEMENTS ABOUT THE RECALLED ASTHMA DRUG ALBUTEROL LAWYERS FOR JACOBY AND MEYERS IN ARIZONA HAVE FILED TWO LAWSUITS ON BEHALF OF SEVEN CLIENTS AGAINST THE DRUG'S MANUFACTURER COPLEY PHARMACEUTICAL INCORPORATED THE JACOBY AND MEYERS ADVERTISEMENTS BREAK NEW GROUND IN DRUMMING UP CLIENTS LEGAL EXPERTS SAY THEY ARE THE FIRST TELEVISION ADS THAT INVITE PEOPLE TO EXPLORE LITIGATION POSSIBILITIES AGAINST A SPECIFIC COMPANY WITH A PROBLEM PRODUCT ALSO SOLICITATIONS ABOUT PRODUCTS GENERALLY DON'T OCCUR UNTIL AFTER THERE ARE CONFIRMED CASES OF INJURIES RELATED TO IT THE ADS WHICH FIRST AIRED IN PHOENIX AND ARE SHOWING IN NEW YORK PHILADELPHIA AND SACRAMENTO CALIFORNIA GIVE A TOLL FREE NUMBER FOR THE FIRM WHICH SENDS CALLERS QUOTE FACT SHEETS QUOTE ABOUT ALBUTEROL ON JACOBY AND MEYERS LETTERHEAD AFTER CONTACTING YOUR DOCTOR THE FIRM ADVISES PROSPECTIVE CLIENTS CONTACT JACOBY AND MEYERS FOR ADVICE REGARDING A POTENTIAL DAMAGE CLAIM AGAINST COPLEY PHARMACEUTICAL INCORPORATED COPLEY RECALLED ALBUTEROL ON JANUARY FIFTH TWO OTHER LAWSUITS ARE PENDING IN CHICAGO THE JACOBY ADS HAVE GENERATED FOUR HUNDRED SEVENTY ONE INQUIRIES IN PHOENIX AND ABOUT FIFTY IN TUCSON SAID PARTNER STEPHEN MEYERS THE FIRM YESTERDAY FILED ONE LAWSUIT IN PHOENIX AND ONE IN TUCSON ON BEHALF OF THE FAMILIES OF SEVEN CHILDREN I WOULD GUESS THAT WITHIN SEVERAL WEEKS WE WOULD HAVE MAYBE ONE THOUSAND CASES SAID MR. MEYERS THE FIRM HAS ITS NATIONAL OFFICES IN NEW YORK THINGS ARE GOING TO HAPPEN MUCH MORE QUICKLY WITH RESPECT TO DEFECTIVE PRODUCTS NOW BECAUSE WE CAN INFORM THE PUBLIC VERY QUICKLY SAID MR. MEYERS AND THEY'LL CONTACT US IN HUGE NUMBERS MR. MEYERS SAID IT WAS IMPORTANT TO ACT QUICKLY IN THIS CASE BECAUSE OF WIDESPREAD CONFUSION ABOUT THE RECALL HE ALSO SAID THAT COPLEY HAS BEEN DOING A POOR JOB OF INFORMING THE PUBLIC THAT IT DISCOVERED POTENTIALLY HARMFUL BACTERIA IN ALBUTEROL WHICH PROMPTED THE RECALL MR. MEYERS SAYS MORE THAN ONE HUNDRED TWENTY FIVE CLIENTS HAVE RETAINED THE FIRM TO PURSUE POSSIBLE CASES A COPLEY REPRESENTATIVE SAID THE COMPANY WOULDN'T COMMENT ON THE LITIGATION OR THE ADVERTISING EXPERTS ON LEGAL ADVERTISING SAID THEY HAD FEW ETHICAL CONCERNS ABOUT THE JACOBY AND MEYERS ADS SO LONG AS THEY DON'T PROMPT AN AVALANCHE OF FRIVOLOUS LAWSUITS THERE ARE SANCTIONS BUILT INTO THE CIVIL JUSTICE SYSTEM FOR FRIVOLOUS SUITS SAID WILL HORNSBY STAFF COUNSEL TO AMERICAN BAR ASSOCIATION COMMISSION ON ADVERTISING MR. HORNSBY SAID PRINT SOLICITATIONS TARGETED AT INJURY VICTIMS HAVE BEEN INCREASING ONE SEATTLE LAWYER BEGAN BUYING QUARTER PAGE ADS IN LOCAL NEWSPAPERS LAST YEAR AFTER AN E. COLI BACTERIA OUTBREAK LINKED TO TAINTED UNDERCOOKED HAMBURGERS SICKENED SIX HUNDRED ADULTS AND RESULTED IN SEVERAL DEATHS WHEN A CHICAGO AREA COMMUTER TRAIN CRASHED LAST YEAR ONE INDIANA LAWYER TOOK OUT FOUR BY FIVE INCH NEWSPAPER ADS ENTITLED QUOTE SOUTH SHORE ACCIDENT VICTIMS KNOW YOUR RIGHTS QUOTE THE JACOBY AND MEYERS SOLICITATIONS ARE UNIQUE SAID MR. HORNSBY BECAUSE THEY APPEAR ON TELEVISION THE SPOTS ARE THE NEWEST INNOVATION IN LEGAL ADVERTISING ONCE CONSIDERED UNETHICAL BY LAWYERS AND PROHIBITED BY STATE AND LOCAL BAR GROUPS BUT IT'S TAKEN OFF SINCE A NINETEEN SEVENTY SEVEN U. S. SUPREME COURT DECISION STRIKING DOWN SUCH PROHIBITIONS AS A VIOLATION OF COMMERCIAL FREE SPEECH INDEED JACOBY AND MEYERS WAS THE FIRST LAW FIRM TO ADVERTISE ON TELEVISION WHILE COPLEY'S RECALL NOTICE SAYS CONTAMINATED BOTTLES OF ALBUTEROL MIGHT CAUSE INFECTIONS IN PEOPLE WITH ASTHMA OR OTHER RESPIRATORY AILMENTS JACOBY AND MEYERS GOES A STEP FARTHER WARNING AGAINST THE POSSIBILITY OF PNEUMONIA IN THE TWO LAWSUITS YESTERDAY FILED IN STATE COURT IN TUCSON AND PHOENIX THE PLAINTIFFS ALLEGED THEIR CHILDREN CONTRACTED SERIOUS ILLNESSES AND RESPIRATORY COMPLICATIONS INCLUDING PNEUMONIA FROM USING ALBUTEROL TRADITIONAL LAW FIRMS HAVE LONG RESISTED LEGAL ADS PARTICULARLY ON TELEVISION OVER CONCERN THAT THEY DEMEAN THE PROFESSION'S IMAGE MORE RECENTLY STATE BAR GROUPS HAVE BECOME CONCERNED THAT TELEVISION PARTICULARLY ADS THAT SOLICIT PERSONAL INJURY VICTIMS MAY TURN PUBLIC OPINION AGAINST LAWYERS AND CLAIMANTS A FIRED GENERAL ELECTRIC COMPANY EXECUTIVE AND SELF PROCLAIMED WHISTLE BLOWER WON A ROUND IN HIS WRONGFUL DISMISSAL ACTION AS A FEDERAL MAGISTRATE RECOMMENDED DENIAL OF G. E.'S MOTION TO DISMISS THE SUIT THE MAGISTRATE'S RECOMMENDATION PAVES THE WAY FOR A JURY TRIAL WHICH G. E. HAD HOPED TO AVOID UNDER THE OHIO WHISTLEBLOWER STATUTE IN FEDERAL COURT IN CINCINNATI THE MAGISTRATE ALSO RECOMMENDED GRANTING G. E. MOTIONS TO DISMISS TWO OTHER CLAIMS THAT WOULD HAVE ALLOWED THE DEFENDANT TO INTRODUCE BROADER CHARGES AND SEEK BROADER REDRESS THE DISMISSAL RECOMMENDATION SIGNIFICANTLY NARROWS THE CASE A G. E. SPOKESWOMAN SAID THE TRIAL AT WHICH G. E. CHAIRMAN JOHN F. WELCH IS EXPECTED TO TESTIFY IS SCHEDULED FOR FEBRUARY TWENTY FIRST IT IS EXPECTED TO MAKE PUBLIC A RAFT OF HITHERTO SEALED CHARGES COUNTER CHARGES DEPOSITIONS AND DOCUMENTS INVOLVING PRICE FIXING ALLEGATIONS THAT ARE CURRENTLY UNDER INVESTIGATION BY THE U. S. JUSTICE DEPARTMENT MUCH OF THE SEALED MATERIAL CONCERNING THE FIRING ALSO OFFERS A RARE LOOK AT THE INNER WORKING OF G. E.'S TOP MANAGEMENT THE SUIT WAS FILED IN APRIL NINETEEN NINETY TWO BY EDWARD RUSSELL WHO WAS VICE PRESIDENT OF G. E. SUPERABRASIVES IN WORTHINGTON OHIO BEFORE BEING FIRED ON SEPTEMBER FIFTH NINETEEN NINETY ONE BY MR. WELCH MR. RUSSELL CHARGES THAT HE WAS FIRED BECAUSE HE RAISED ANTITRUST OBJECTIONS TO HIS BOSS'S MEETING WITH G. E.'S ONLY MAJOR COMPETITOR IN INDUSTRIAL DIAMONDS G. E. WHICH MAINTAINS THAT AT THE MEETING WAS TO DISCUSS TECHNOLOGY EXCHANGE CONTENDS THAT MR. RUSSELL WAS FIRED FOR POOR PERFORMANCE WITHOUT PASSING ANY JUDGMENT ON THE MERITS OF THE CASE MAGISTRATE JUDGE ROBERT STEINBERG SAID G. E. DIDN'T PRESENT ENOUGH EVIDENCE TO PREVAIL IN ITS MOVE TO GET THE COURT TO DISMISS MR. RUSSELL'S SUIT THE MAGISTRATE LISTED HIS FINDINGS AND RECOMMENDATIONS IN A THIRTY PAGE REPORT TO THE JUDGE WHO IS SCHEDULED TO PRESIDE OVER THE TRIAL COMMENTING ON MAGISTRATE STEINBERG'S ACTION A G. E. SPOKESWOMAN SAID THAT THE MAGISTRATE'S RULING SIMPLY MEANS THAT THERE ARE GENUINE DISPUTES OVER THE MATERIAL FACTS IN ONE OF MR. RUSSELL'S CHARGES AND THEREFORE IT SHOULD GO TO TRIAL NORIEGA MOTION LAWYERS FOR MANUEL NORIEGA ASKED FOR A NEW TRIAL IN HIS DRUG CASE SAYING A NEW BOOK INDICATES JURORS IMPROPERLY PRESSURED A HOLDOUT THEN MISLED THE JUDGE ACCORDING TO THE ASSOCIATED PRESS THE BOOK QUOTE THE CASE AGAINST THE GENERAL MANUEL NORIEGA AND THE POLITICS OF AMERICAN JUSTICE QUOTE BY JOURNALIST STEVE ALBERT QUOTE RAISES NEW AND DISTURBING QUESTIONS CONCERNING THE CONDUCT OF THE JURORS BOTH DURING THE DELIBERATIONS AS WELL AS BEFORE THIS COURT QUOTE SAID THE MOTION FROM ATTORNEY JON MAY THE OUSTED PANAMANIAN MILITARY LEADER WAS CONVICTED IN APRIL NINETEEN NINETY TWO ON EIGHT FEDERAL DRUG AND RACKETEERING COUNTS DAN GELBER SPOKESMAN FOR THE U. S. ATTORNEY IN MIAMI SAID HIS OFFICE WOULD NOT LITIGATE THIS THROUGH THE MEDIA AND REFUSED TO COMMENT AMAL KUMAR NAJ CONTRIBUTED TO THIS ARTICLE SOUTHWEST AIRLINES REPORTED FOURTH QUARTER AND YEAR END PROFITS THAT WERE MORE THAN FORTY PERCENT HIGHER THAN A YEAR EARLIER DALLAS BASED SOUTHWEST SAID IT HAD FOURTH QUARTER NET INCOME OF THIRTY EIGHT POINT FOUR MILLION DOLLARS OR TWENTY SIX CENTS A SHARE ON REVENUE OF SIX HUNDRED EIGHT POINT FIVE MILLION DOLLARS FOR THE YEAR EARLIER PERIOD SOUTHWEST EARNED TWENTY SIX POINT SEVEN MILLION DOLLARS OR EIGHTEEN CENTS A SHARE ON REVENUE OF FOUR HUNDRED EIGHTY THREE POINT THREE MILLION DOLLARS THE RESULTS INCLUDE THOSE OF MORRIS AIR CORPORATION WHICH SOUTHWEST BOUGHT IN DECEMBER THROUGH ISSUING THREE MILLION FIVE HUNDRED SEVENTY FOUR THOUSAND SIX HUNDRED FIFTY SIX COMMON SHARES AND ACCOUNTING FOR THE PURCHASE AS A POOLING OF INTEREST THE DEAL WAS VALUED AT ABOUT ONE HUNDRED TWENTY EIGHT MILLION DOLLARS SOUTHWEST HAD A ONE TIME CHARGE IN THE FOURTH QUARTER FROM MERGER COSTS WHICH REDUCED NET INCOME BY SIX POINT THREE MILLION DOLLARS OR FOUR CENTS A SHARE FOR THE YEAR NET INCOME WAS ONE HUNDRED SIXTY NINE POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND FIFTEEN CENTS A SHARE COMPARED WITH THE YEAR EARLIER ONE HUNDRED NINE POINT NINE MILLION DOLLARS OR SEVENTY SEVEN CENTS A SHARE REVENUE ROSE TO TWO POINT TWO NINE BILLION DOLLARS FROM ONE POINT EIGHT OH BILLION DOLLARS FRENCH CAR MAKER RENAULT S. A. SOLD A FOUR POINT EIGHT FIVE PERCENT STAKE OF A. B. VOLVO THE SWEDISH COMPANY WITH WHICH A PLANNED MERGER HAD FAILED RENAULT SAID IT NOW HOLDS THREE POINT FOUR FIVE PERCENT OF VOLVO CAPITAL AND EIGHT POINT SEVEN SIX PERCENT OF ITS VOTING RIGHTS IT PREVIOUSLY HELD EIGHT POINT THREE PERCENT OF THE CAPITAL AND NINE POINT NINE NINE PERCENT OF THE VOTING RIGHTS RENAULT HAD BUILT UP ITS STAKE IN VOLVO GRADUALLY BUYING ITS SHARES ON THE OPEN MARKET UNTIL SEPTEMBER THE SHAREHOLDING WAS CHARACTERIZED AS AN INVESTMENT AND WASN'T RELATED TO THE CROSS SHAREHOLDING AGREEMENTS THAT CEMENTED THE INDUSTRIAL ALLIANCE BETWEEN THE TWO CAR GROUPS UNDER THESE ACCORDS THE SWEDISH GROUP TOOK A TWENTY PERCENT SHAREHOLDING IN RENAULT S. A. AND FORTY FIVE PERCENT OF RENAULT'S TRUCK DIVISION RENAULT VEHICULES INDUSTRIELS OR RVI THE REMAINDER OF RENAULT'S SHARES ARE HELD BY THE FRENCH GOVERNMENT IN RETURN RENAULT ACQUIRED TWENTY FIVE PERCENT OF VOLVO'S CAR DIVISION AND FORTY FIVE PERCENT OF VOLVO TRUCKS ACCORDING TO UNOFFICIAL ESTIMATES RENAULT MADE A PROFIT OF CLOSE TO SEVEN HUNDRED FIFTY MILLION FRANCS ONE HUNDRED TWENTY SEVEN POINT FIVE MILLION DOLLARS FROM THE SALE OF ITS STAKE RENAULT SOLD THREE POINT TWO MILLION A. B. VOLVO SHARES AT SIX HUNDRED FIFTY FIVE KRONOR EIGHTY TWO DOLLARS AND NINETY NINE CENTS ON TUESDAY FOR A TOTAL AMOUNT OF TWO POINT ONE BILLION KRONOR COCA COLA ENTERPRISES INCORPORATED ATLANTA REPORTED A FOURTH QUARTER PROFIT AGAINST A YEAR EARLIER LOSS AS THE COMPANY BENEFITED FROM GAINS IN VOLUME AND LOWER PACKAGING COSTS THE LARGE COKE BOTTLER SAID NET INCOME TOTALED FOUR MILLION DOLLARS OR THREE CENTS A SHARE COMPARED WITH A LOSS OF THIRTY ONE MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE A YEAR EARLIER REVENUE ROSE THREE PERCENT TO ONE POINT THREE TWO BILLION DOLLARS FROM ONE POINT TWO EIGHT BILLION DOLLARS THE STOCK CLOSED AT SEVENTEEN POINT EIGHT SEVEN FIVE DOLLARS UP ONE POINT THREE SEVEN FIVE DOLLARS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE COMPANY WHICH IS FORTY THREE PERCENT OWNED BY COCA COLA COMPANY ALSO IN ATLANTA SAID THAT SALES OF BOTTLED AND CANNED SOFT DRINKS ROSE ABOUT THREE PERCENT IN THE FOURTH QUARTER EXCLUDING THE EFFECT OF ACQUISITIONS FOUNTAIN GALLON VOLUME AGAIN EXCLUDING THE EFFECT OF ACQUISITIONS INCREASED ABOUT SIX PERCENT FOR THE YEAR COCA COLA ENTERPRISES HAD A NET LOSS OF FIFTEEN MILLION DOLLARS OR ELEVEN CENTS A SHARE COMPARED WITH A NET LOSS OF ONE HUNDRED EIGHTY SIX MILLION DOLLARS OR ONE DOLLAR AND FORTY FIVE CENTS A SHARE A YEAR EARLIER THE NINETEEN NINETY THREE RESULTS INCLUDE A CHARGE OF FORTY MILLION DOLLARS OR THIRTY ONE CENTS A SHARE FOR THE RESTATEMENT OF DEFERRED TAX LIABILITY FOR THE FIRST TIME IN A DECADE FORD MOTOR COMPANY WILL SHIP ABOUT THREE THOUSAND MUSTANG MUSCLE CARS TO JAPAN THIS YEAR AS PART OF A BROADER STRATEGY TO BOOST PROFITS BY SHARING MORE PRODUCTS AND TECHNOLOGY AMONG ITS OPERATIONS WORLD WIDE DURING A NEWS CONFERENCE IN ADVANCE OF THE CHICAGO AUTO SHOW FORD CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALEXANDER TROTMAN SAID FORD'S LONG TERM GOAL IS TO EARN A FIVE PERCENT RETURN ON REVENUE OR AN EIGHT PERCENT TO TEN PERCENT RETURN ON ASSETS ROUGHLY FIVE BILLION DOLLARS A YEAR ON FORD'S CURRENT SALES TO DO THAT MR. TROTMAN SAID FORD WILL PURSUE A VARIETY OF INITIATIVES TO MORE CLOSELY LINK ITS OPERATIONS WORLD WIDE AS AN EXAMPLE MR. TROTMAN CITED FORD'S NEW MERCURY MYSTIQUE WHICH WAS OFFICIALLY UNVEILED YESTERDAY THE MYSTIQUE AND ITS FORD TWIN THE CONTOUR ARE SEDANS THAT WERE LARGELY ENGINEERED BY FORD OF EUROPE AND WILL BE MANUFACTURED IN EUROPE THE U. S. AND MEXICO FORD WILL HAVE CAPACITY TO BUILD THREE HUNDRED THOUSAND CONTOURS AND MYSTIQUES FOR THE NORTH AMERICAN MARKET THE PRIVATIZATION OF SOCIETE NATIONALE ELF AQUITAINE WILL GET UNDER WAY TODAY WITH THE PUBLIC OFFER IN FRANCE PRICED AT THREE HUNDRED EIGHTY FIVE FRANCS SIXTY FIVE DOLLARS AND FORTY FOUR CENTS PER SHARE THE ECONOMICS MINISTRY SAID THE OPERATION FRANCE'S BIGGEST EVER PRIVATIZATION WILL BRING THE GOVERNMENT AT LEAST THIRTY FOUR BILLION FRANCS FROM THE SALE OF EIGHTY NINE MILLION SHARES IN THE OIL COMPANY THE SHARE OFFER WILL RUN THROUGH NEXT THURSDAY A TOTAL OF THIRTY THREE MILLION TWO HUNDRED SEVEN THOUSAND FIVE HUNDRED THIRTY WILL BE SOLD THROUGH THE PUBLIC OFFER IN FRANCE A SEPARATE TRANCHE OF TWENTY SEVEN MILLION ONE HUNDRED SIXTY NINE THOUSAND SEVEN HUNDRED NINETY SIX SHARES WILL BE OFFERED TO INSTITUTIONAL INVESTORS IN FRANCE AND ABROAD PRICING FOR THAT ISSUE WILL BE ANNOUNCED FEBRUARY FOURTEENTH THE MINISTRY SAID TWENTY TWO MILLION SHARES REPRESENTING EIGHT POINT FIVE PERCENT OF THE COMPANY ARE BEING ALLOCATED TO A CORE GROUP OF SHAREHOLDERS INCLUDING STATE CONTROLLED INSURANCE GROUP UNION DES ASSURANCES DE PARIS A FURTHER SIX POINT SEVEN MILLION SHARES HAVE BEEN SET ASIDE FOR ELF AQUITAINE'S PRESENT AND PAST EMPLOYEES ERAP ELF AQUITAINE'S HOLDING COMPANY ALSO HAS AN OPTION TO OFFER BANKS HANDLING THE INSTITUTIONAL PLACEMENT AN EXTRA BLOCK OF SHARES EQUIVALENT TO TEN PERCENT OF THAT PLACEMENT IF THAT OPTION IS EXERCISED THE GOVERNMENT'S STAKE IN ELF WOULD FALL TO THIRTEEN PERCENT FROM THE CURRENT FIFTY POINT EIGHT PERCENT ELF AQUITAINE SHARES CLOSED AT FOUR HUNDRED THIRTY POINT SEVEN FRANCS ON THE PARIS BOURSE YESTERDAY UP FROM FOUR HUNDRED TWENTY FOUR FRANCS ON TUESDAY THE PENTAGON'S TOP LAWYER JAMIE GORELICK HAS EMERGED AS THE LEADING CANDIDATE TO SUCCEED PHILIP HEYMANN AS DEPUTY ATTORNEY GENERAL MR. HEYMANN ANNOUNCED HIS RESIGNATION LAST WEEK MS. GORELICK WOULD LIKELY ENJOY AN EASY CONFIRMATION PROCESS HAVING UNDERGONE ONE LAST YEAR FOR HER CURRENT POSITION THE FORTY THREE YEAR OLD HARVARD LAW SCHOOL GRADUATE HAS BEEN A MAJOR PLAYER IN THE DEVELOPMENT OF THE DEFENSE DEPARTMENT'S POLICY ON GAYS IN THE MILITARY AND HAS WORKED WITH THE JUSTICE DEPARTMENT AND THE FEDERAL TRADE COMMISSION IN DEVELOPING AN ANTITRUST ENFORCEMENT STRATEGY CONCERNING THE CONSOLIDATING DEFENSE INDUSTRY MS. GORELICK IS AUTHOR OF QUOTE DESTRUCTION OF EVIDENCE QUOTE A NINETEEN EIGHTY NINE TREATISE ON MAINTAINING DOCUMENTS AND PENALTIES FOR DESTROYING EVIDENCE BEFORE JOINING THE PENTAGON MS. GORELICK WAS A LITIGATOR IN THE WASHINGTON LAW FIRM OF MILLER CASSIDY LARROCA AND LEWIN WHERE SHE SPECIALIZED IN CIVIL AND CRIMINAL MATTERS INCLUDING GRAND JURY INVESTIGATIONS THE EMERGENCE OF MS. GORELICK AS A LEADING CANDIDATE WAS FIRST REPORTED BY THE NEW YORK TIMES YESTERDAY CLEAR CHANNEL COMMUNICATIONS INCORPORATED SAID FOURTH QUARTER REVENUE SURGED FIFTY PERCENT AND NET INCOME NEARLY TRIPLED SURPASSING ANALYSTS' ESTIMATES AND SENDING THE BROADCASTING COMPANY'S STOCK HIGHER CLEAR CHANNEL BASED IN SAN ANTONIO TEXAS HAD NET INCOME OF FOUR POINT EIGHT MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE ON REVENUE OF FORTY SEVEN POINT NINE MILLION DOLLARS LAST YEAR THE COMPANY POSTED FOURTH QUARTER EARNINGS OF ONE POINT SIX MILLION DOLLARS OR FOURTEEN CENTS A SHARE ON REVENUE OF THIRTY ONE POINT NINE MILLION DOLLARS ACCORDING TO THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM ANALYSTS HAD EXPECTED EARNINGS OF TWENTY ONE CENTS A SHARE IN THE QUARTER AS A RESULT CLEAR CHANNEL SHARES ROSE TWO POINT ONE TWO FIVE DOLLARS OR FIVE POINT THREE PERCENT TO FORTY TWO DOLLARS AND FIFTY CENTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CLEAR CHANNEL RAISED FIFTY EIGHT MILLION DOLLARS IN A SECONDARY STOCK OFFERING DURING THE QUARTER AND COMPLETED THE ACQUISITION OF A MINNEAPOLIS TELEVISION STATION L. LOWRY MAYS PRESIDENT AND CHIEF EXECUTIVE SAID THE RESULTS REFLECTED BOTH THE COMPANY'S ACQUISITIONS AND IMPROVED OPERATIONS AT EXISTING STATIONS CHANNEL ONE THE ADVERTISING SUPPORTED NEWS PROGRAM BROADCAST IN SCHOOLS NATIONWIDE SLIGHTLY IMPROVES STUDENTS' KNOWLEDGE OF CURRENT EVENTS A UNIVERSITY OF MICHIGAN STUDY CONCLUDED THE STUDY COMMISSIONED BY CHANNEL ONE'S OWNER WHITTLE COMMUNICATIONS L. P. FOUND THAT HIGH SCHOOL STUDENTS WHO WATCHED THE DAILY PROGRAM IN NINETEEN NINETY THREE PERFORMED AN AVERAGE OF FIVE PERCENT BETTER ON CURRENT EVENTS TESTS THAN NONVIEWING STUDENTS MIDDLE SCHOOL STUDENTS PERFORMED EIGHT PERCENT BETTER THAN NONVIEWERS ACCORDING TO THE STUDY AN EARLIER MICHIGAN STUDY WHICH SURVEYED NINETEEN NINETY TO NINETEEN NINETY TWO VIEWERS FOUND THAT CHANNEL ONE STUDENTS ON AVERAGE PERFORMED ONLY ABOUT THREE PERCENT BETTER ON CURRENTEVENTS TESTS AND TYPICALLY TALKED OR DID HOMEWORK DURING THE BROADCAST JEROME JOHNSTON ONE OF THE RESEARCHERS SAID THAT EVEN THE BRIGHTEST CHANNEL ONE VIEWERS LEARN QUOTE MUCH MORE QUOTE IF THEIR TEACHERS DISCUSS THE MEANING OF THE NEWS ON A REGULAR BASIS PROGRAMMING ALONE DOESN'T IMPROVE STUDENT LEARNING OF CURRENT EVENTS HE CONCLUDED PEGGY CHARREN FOUNDER OF ACTION FOR CHILDREN'S TELEVISION QUESTIONED THE SIGNIFICANCE OF THE STUDY'S FINDINGS SINCE CHANNEL ONE'S PROGRAMMING INCLUDES SOME SPORTS AND ENTERTAINMENT NEWS WHAT KIND OF CURRENT EVENTS ARE THEY LEARNING ABOUT MOVIE FADS AND WHAT'S HAPPENING IN THE ENTERTAINMENT WORLD THAT'S NOT SOMETHING THEY NEED TO LEARN IN SCHOOLS SHE SAID A. B. ELECTROLUX'S EARNINGS MORE THAN DOUBLED IN THE FOURTH QUARTER AND JUMPED A BETTER THAN EXPECTED FIFTY TWO PERCENT FOR THE FULL YEAR THE NEWS PUSHED THE SWEDISH APPLIANCE MAKER'S SHARES UP SEVEN POINT THREE PERCENT IN HEAVY TRADING IN STOCKHOLM YESTERDAY THE PROFIT SURGE WAS ATTRIBUTED TO THE WEAKER SWEDISH KRONA WHICH BALLOONED THE VALUE OF EARNINGS ABROAD AND THE POSITIVE EFFECTS OF TOUGH RESTRUCTURING AND COST CUTTING PROGRAMS PRETAX PROFIT JUMPED TO FIVE HUNDRED EIGHTY NINE MILLION KRONOR SEVENTY FOUR POINT SEVEN MILLION DOLLARS FOR THE FOURTH QUARTER FROM TWO HUNDRED EIGHTY MILLION KRONOR A YEAR EARLIER AS SALES ROSE TWENTY PERCENT TO TWENTY FIVE POINT EIGHT FIVE BILLION KRONOR FROM TWENTY ONE POINT FOUR EIGHT BILLION KRONOR FOR THE FULL YEAR PRETAX PROFIT JUMPED TO ONE POINT FIVE FIVE BILLION KRONOR FROM ONE POINT OH TWO BILLION KRONOR SALES CLIMBED TWENTY FOUR PERCENT TO ONE HUNDRED POINT ONE BILLION KRONOR FROM EIGHTY POINT FOUR FOUR BILLION THE PREVIOUS YEAR READER'S DIGEST ASSOCIATION INCORPORATED SAID REVENUE DECLINED BUT PROFIT WAS UP IN ITS SECOND QUARTER PRIMARILY BECAUSE OF LOWER PROMOTIONAL COSTS FOR THE FISCAL SECOND QUARTER ENDED DECEMBER THIRTY FIRST THE PLEASANTVILLE N. Y. COMPANY REPORTED NET INCOME OF EIGHTY EIGHT POINT EIGHT MILLION DOLLARS OR SEVENTY SIX CENTS A SHARE UP TWENTY SIX PERCENT FROM SEVENTY POINT FOUR MILLION DOLLARS OR FIFTY NINE CENTS A SHARE A YEAR EARLIER REVENUE SLIPPED ONE PERCENT TO EIGHT HUNDRED TWO POINT ONE MILLION DOLLARS FROM EIGHT HUNDRED SIX POINT SEVEN MILLION DOLLARS THE COMPANY SAID THAT IT CUT BACK ON ITS PROMOTIONAL ACTIVITY IN ITS U. S. BOOKS AND HOME ENTERTAINMENT BUSINESS AFTER SEEING REVENUE IN THOSE AREAS DECLINE THOSE MOVES HELPED THE SECOND QUARTER RESULTS BUT READER'S DIGEST DOES NOT QUOTE EXPECT THE EARNINGS GROWTH RATES IN THE FIRST HALF TO CONTINUE IN THE SECOND HALF OF NINETEEN NINETY FOUR QUOTE SAID GEORGE V. GRUNE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SHARES OF READER'S DIGEST GAINED FIFTY CENTS TO FORTY FOUR DOLLARS AND FIFTY CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE STOCK PRICES IN TOKYO EASED WEDNESDAY ON PROFIT TAKING FOLLOWING THEIR RECENT SURGE BUT LONDON'S RALLY RESUMED AND STOCKS FINISHED AT RECORD HIGHS DRIVEN PARTLY BY EXPECTATIONS FOR LOWER EUROPEAN INTEREST RATES WHICH ALSO PROPELLED THE PARIS EXCHANGE TO A NEW HIGH WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED NINETEEN POINT OH TWO UP ZERO POINT ZERO ONE REFLECTING HIGHER AMERICAN AND EUROPEAN MARKETS AND LOWER ASIA SLASH PACIFIC MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT TWO HUNDRED TWENTY SEVEN POINT SEVEN ONE UP NINE POINT FOUR NINE OR FOUR POINT FOUR PERCENT WITH KUMPULAN GUTHRIE OF MALAYSIA POSTING A EIGHT POINT NINE PERCENT GAIN IN ITS LOCAL CURRENCY CONSUMER ELECTRONICS STOCKS TRAILED AT ONE HUNDRED THIRTY FOUR POINT FOUR FOUR DOWN THREE POINT OH NINE OR TWO POINT TWO FIVE PERCENT WITH SONY OF JAPAN SLIDING THREE POINT SIX PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH ROSE ONE HUNDRED EIGHTY SEVEN POINT THREE FOUR POINTS TUESDAY FELL ONE HUNDRED SIXTY SIX POINT THREE ONE TO TWENTY THOUSAND TWO HUNDRED FIFTY POINT OH THREE IN TRADING THURSDAY THE NIKKEI INDEX EASED SIXTY POINT OH ONE POINTS TO CLOSE THE MORNING SESSION AT TWENTY THOUSAND ONE HUNDRED NINETY POINT OH TWO WEDNESDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT SIX HUNDRED SEVENTY MILLION SHARES STILL BRISK THOUGH DOWN FROM NINE HUNDRED FIFTY POINT EIGHT MILLION SHARES A DAY EARLIER LOSERS OUTNUMBERED GAINERS SIX HUNDRED SIXTY FOUR TO THREE HUNDRED NINETY ONE THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH ADDED THIRTEEN POINT EIGHT EIGHT POINTS TUESDAY DROPPED FIFTEEN POINT FOUR FOUR TO ONE THOUSAND SIX HUNDRED TWENTY SEVEN POINT SIX SIX THE TOKYO CORRECTION HAD BEEN EXPECTED FOLLOWING THE HUGE GAINS EARLIER THIS WEEK AFTER A STRONG OPENING THE NIKKEI PLUNGED MORE THAN TWO HUNDRED POINTS ON ARBITRAGE RELATED SELLING A WAVE OF BUYING IN AFTERNOON DEALINGS REINED IN THE DECLINES YET STOCKS' GENERALLY LIMITED DROPS SIGNALED THAT INVESTORS WERE COMFORTABLE WITH THE CURRENT PRICE RANGE FOREIGNERS PROVIDED MUCH OF THE BUYING SUPPORT AS THEY HAVE FOR THE PAST MONTH JAPANESE DEALERS AND INSTITUTIONAL INVESTORS WERE AMONG THOSE TAKING PROFITS THOUGH SOME DEALERS RESUMED BUYING LATER IN THE SESSION STILL SOME INVESTORS WERE WORRIED THAT THE JAPANESE YEN'S RECENT GAINS IN CURRENCY MARKETS THREATENED TO CUT INTO EARNINGS OF JAPANESE EXPORTERS THE YEN'S STRENGTH ALSO MAKES YEN DENOMINATED ASSETS MORE EXPENSIVE FOR OVERSEAS INVESTORS A PUSH HIGHER BY THE YEN COULD COOL OVERSEAS INVESTORS' ARDOR FOR JAPANESE ASSETS IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX JUMPED THIRTY EIGHT POINT EIGHT POINTS OR ONE POINT ONE PERCENT TO THREE THOUSAND FIVE HUNDRED TWENTY POINT THREE AN ALL TIME HIGH THAT TOPPED THE THREE THOUSAND FIVE HUNDRED LEVEL FOR THE FIRST TIME THE F. T. THIRTY STOCK INDEX ROCKETED UP THIRTY SIX POINT SEVEN POINTS OR ONE POINT FOUR PERCENT TO TWO THOUSAND SEVEN HUNDRED THIRTEEN POINT SIX AND THE F. T. TWO HUNDRED FIFTY INDEX SURGED FORTY FIVE POINT FIVE POINTS OR ONE POINT ONE PERCENT TO FOUR THOUSAND ONE HUNDRED FIFTY POINT NINE VOLUME WAS UNCHANGED AT ONE POINT OH EIGHT BILLION SHARES THE ACROSS THE BOARD GAINS WITH FOREIGN AND U. S. INVESTORS FIGURING HEAVILY AS BUYERS CAME DESPITE A LACK OF FRESH CORPORATE NEWS AN EASING IN BOND PRICES AND LOWER INTEREST RATE FUTURES THE STOCK MARKET'S RISE WAS LINKED TO THE FUTURES PIT WHICH WAS DRIVEN BY SPECULATION THAT GERMANY'S CENTRAL BANK MIGHT CUT INTEREST RATES TODAY AND SOME LONDON STOCK MARKET PARTICIPANTS WERE CONVINCED BRITAIN WOULD FOLLOW SUIT WITH A LENDING RATE CUT THAT SPECULATION SENT STOCK INDEX FUTURES RALLYING EARLY CATCHING INVESTORS AND DEALERS IN THE STOCK MARKET BY SURPRISE AND FORCING THE COVERING OF SOME UNDERWEIGHTED POSITIONS BULLS ALSO WERE HEARTENED BY A STATEMENT BY BRITAIN'S TREASURY THAT THE RETAIL SALES TREND REMAINS QUOTE STRONGLY UPWARD QUOTE AND THAT THE LATEST ECONOMIC DATA SUGGEST QUOTE FURTHER RECOVERY QUOTE IN FRANKFURT PRICES CLOSED MIXED TO SLIGHTLY HIGHER IN A DIRECTIONLESS SESSION AS INVESTORS WERE DIVIDED ON WHETHER GERMAN RATES WOULD BE REDUCED THE D. A. X. THIRTY STOCK INDEX ROSE FOUR POINT THREE FOUR POINTS TO TWO THOUSAND ONE HUNDRED EIGHTY FOUR POINT OH ONE FOR THE FIFTH GAIN IN A ROW AND A TWO POINT FOUR PERCENT GAIN THIS WEEK IN PARIS STOCKS ADVANCED ONE POINT ONE PERCENT TO A RECORD THE SECOND THIS WEEK AMID SNOW BALLING EXPECTATIONS FOR LOWER INTEREST RATES OPINION WAS DIVIDED ABOUT PROSPECTS FOR GERMANY THE RATE SETTING LEADER TO MAKE A REDUCTION BUT PARIS INVESTORS DIDN'T LET ANY UNCERTAINTY DAMP THEIR OPTIMISM A GERMAN RATE CUT COULD CLEAR THE WAY FOR FRANCE'S CENTRAL BANK TO ACT LIKEWISE IN MILAN REVERSING EARLY DECLINES FROM PROFIT TAKING SHARES ENDED SHARPLY HIGHER BUOYED BY A PUBLIC OFFERING IN THE FINANCIAL SECTOR THAT WAS POPULAR AMONG FOREIGN INVESTORS AND BY POTENTIAL TURNAROUNDS FOR SOME FINANCIALLY AILING COMPANIES IN MADRID EQUITIES REBOUNDED DRIVEN UP BY SPANISH MUTUAL FUNDS THAT HAVE BEEN HAVING HUGE GROWTH AND BY DECLINING BOND YIELDS PROVIDING SEEMINGLY ENDLESS LIQUIDITY FOR BUYING STOCKS SENTIMENT ALSO WAS HELPED BY SPECULATION ABOUT RATE CUTS IN EUROPE IN STOCKHOLM PRICES LOPED UP IN RECORD TURNOVER LED BY THE AUTO AND HOUSEHOLD APPLIANCE SECTORS PARTLY ON FAVORABLE EARNINGS IN ZURICH SHARES ROSE PACED BY ROBUST BUYING IN THE BANKING SECTOR IN BRUSSELS PROFIT TAKING KNOCKED PRICES DOWN FOLLOWING BIG GAINS IN HONG KONG AFTER SEESAW TRADING IN HEAVY TURNOVER PRICES SLIPPED INTO NEGATIVE TERRITORY LATE IN THE SESSION AND ENDED AT THEIR LOWS STOCKS TRADED UNSTEADILY BUT WITH GAINS IN A WIDE BAND MOST OF THE DAY WITH LITTLE CORPORATE NEWS TO INFLUENCE A TREND PARTICIPANTS WERE DISAPPOINTED BY CHINA'S COOL REACTION TO THE BRITISH COLONIAL GOVERNMENT'S LATEST FUNDING PROPOSALS FOR A NEW AIRPORT IN SINGAPORE SHARES FELL BECAUSE OF LATE PROFIT TAKING WHILE FOREIGN INVESTORS ONLY NIBBLED SELECTIVELY AND RETAIL INVESTORS ALSO WERE QUIET BUT IN KUALA LUMPUR STOCKS SURGED THREE POINT SEVEN PERCENT IN MODERATE TRADING LIFTED BY BROAD SUPPORT FOR BLUE CHIPS AND SOME FRESH SPECULATIVE PLAYS IN TAIPEI STOCKS CLIMBED ONE POINT THREE PERCENT ON HEALTHY VOLUME FOLLOWING TUESDAY'S ONE PERCENT GAIN BRINGING THE MAIN INDEX'S ADVANCE TO SEVEN POINT THREE PERCENT FOR THE PAST SIX TRADING DAYS THE SEASONAL BULL RUN AHEAD OF THE HOLIDAY NEXT THURSDAY FOR THE LUNAR NEW YEAR WAS REINFORCED BY THE TAIWAN CENTRAL BANK'S RECENT EASING OF ITS TIGHT MONEY POLICY IN MANILA SHARES RALLIED TWO POINT FIVE PERCENT IN LIGHT VOLUME IN A TECHNICAL REBOUND AFTER FALLING SINCE THE PHILIPPINE GOVERNMENT LAST FRIDAY ANNOUNCED PRICE INCREASES ON PETROLEUM PRODUCTS ELECTRICITY RATES AND TRANSPORTATION FARES AND IN SEOUL PRICES ADVANCED ONE POINT FIVE PERCENT IN ROBUST ACTIVITY AS BIG HIGH PRICED BLUE CHIP ISSUES CONTINUED THEIR BULL RUN DEFYING REPEATED THREATS OF SOUTH KOREAN GOVERNMENT INTERVENTION TO NARROW GAPS WITH LOW PRICED STOCKS AMONG CORPORATE DEVELOPMENTS IN PARIS ELF AQUITAINE JUMPED SIX POINT SEVEN FRENCH FRANCS OR ONE POINT SIX PERCENT TO FOUR HUNDRED THIRTY POINT SEVEN FRANCS SEVENTY THREE DOLLARS AND TWENTY ONE CENTS THE OFFERING OF EIGHTY NINE MILLION SHARES IN THE PRIVATIZATION OF THE FRENCH STATE CONTROLLED OIL COMPANY TO RUN TODAY THROUGH NEXT THURSDAY WAS PRICED AT THREE HUNDRED EIGHTY FIVE FRANCS A SHARE WHICH COULD RAISE A TOTAL OF AT LEAST THIRTY FOUR BILLION FRANCS FIVE POINT SEVEN EIGHT BILLION DOLLARS IN AMSTERDAM FOKKER SLID ONE POINT NINE OH GUILDERS OR EIGHT POINT THREE PERCENT TO TWENTY ONE GUILDERS TEN DOLLARS AND EIGHTY ONE CENTS AMID NEWS REPORTS THAT THE AIRCRAFT COMPANY FACES HUGE LOSSES THIS YEAR AND THAT A BOARDROOM BATTLE MAY CLAIM ADDITIONAL VICTIMS THE CHAIRMAN THIS WEEK DEPARTED FOLLOWING AN APPARENT DISPUTE ABOUT RESTRUCTURING 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END LIBBEY INCORPORATED SAID IT EXPECTS TO POST AN OPERATING PROFIT OF AS MUCH AS FIFTY FOUR MILLION DOLLARS FOR NINETEEN NINETY THREE UP FROM A NINETEEN NINETY TWO PRO FORMA OPERATING PROFIT OF FORTY SEVEN POINT ONE MILLION DOLLARS OFFICIALS OF THE TOLEDO OHIO MAKER OF GLASS TABLEWARE SAID THEY'RE COMFORTABLE WITH ANALYSTS' ESTIMATES FOR NINETEEN NINETY THREE PER SHARE EARNINGS BETWEEN ONE DOLLAR AND FIFTY THREE CENTS TO ONE DOLLAR AND FIFTY FIVE CENTS COMPARED WITH ONE DOLLAR AND TWENTY SEVEN CENTS A YEAR EARLIER LIBBEY WHICH BECAME A PUBLICLY TRADED COMPANY IN JUNE PLANS TO RELEASE ITS FOURTH QUARTER RESULTS NEXT WEEK QUOTE WE ARE CAUTIOUSLY OPTIMISTIC ABOUT NINETEEN NINETY FOUR AND WHAT IT OFFERS FOR US QUOTE SAID JOHN F. MEIER LIBBEY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE FOOD SERVICE INDUSTRY CONTINUES TO REBOUND HOTEL OCCUPANCY IS NOW APPROACHING THE HIGH SIXTY PERCENT LEVEL AND OUR EXPORT BUSINESS IS GROWING WALT DISNEY COMPANY SAID IT TENTATIVELY AGREED TO SPEND TWENTY NINE MILLION DOLLARS TO RESTORE AND REOPEN THE HISTORIC NEW AMSTERDAM THEATER ON WEST FORTY SECOND STREET IN NEW YORK THE RENOVATION WHICH GOVERNMMENT OFFICIALS HOPE WILL SPEED PLANS TO REVITALIZE THE FORTY SECOND STREET ENTERTAINMENT DISTRICT WILL BE FINANCED BY AN EIGHT MILLION DOLLAR DISNEY INVESTMENT AND A TWENTY ONE MILLION DOLLAR GOVERNMENT LOAN TO THE COMPANY A DISNEY SPOKESMAN SAID AN AGREEMENT FOR THE FINANCING WAS UNVEILED BY DISNEY CHAIRMAN MICHAEL EISNER NEW YORK GOVERNOR MARIO M. CUOMO AND NEW YORK MAYOR RUDOLPH W. GIULIANI MR. EISNER SAID THE MOVE BY THE BURBANK CALIFORNIA COMPANY MARKS ITS EXPANDING COMMITMENT TO LIVE ENTERTAINMENT THE COMPANY ALREADY IS INVOLVED IN ANOTHER MAJOR NEW YORK LIVE ENTERTAINMENT VENTURE WITH ITS PREMIERE OF QUOTE BEAUTY AND THE BEAST THE MUSICAL QUOTE AT THE PALACE THEATER SCHEDULED FOR APRIL SEVENTH MOODY'S INVESTORS SERVICE INCORPORATED SAID IT UPGRADED THE RATING OF THIS DRUGSTORE CHAIN OPERATOR'S ONE HUNDRED FORTY MILLION DOLLARS NINE POINT ONE TWO FIVE PERCENT SENIOR UNSECURED NOTES DUE TWO THOUSAND TO B. A. ONE FROM B. A. THREE MOODY'S SAID QUOTE THE RATING ADJUSTMENT REFLECTS THE BENEFIT REALIZED FROM THE RELEASE OF SECURITY AGAINST THE BANK GROUP QUOTE AS WELL AS CONTINUED IMPROVEMENTS IN THE OPERATING PERFORMANCE AND THE DEBT SERVICING CAPABILITIES OF THE COMPANY HOWEVER THESE FACTORS ARE SOMEWHAT OFFSET BY THE CONTINUING PRESSURE ON GROSS MARGINS AND OTHER ITEMS THE RATINGS AGENCY SAID LUKENS INCORPORATED REPORTED A NET LOSS OF SEVEN POINT EIGHT MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE FOR THE FOURTH QUARTER ENDED DECEMBER TWENTY FIFTH NINETEEN NINETY THREE REFLECTING SEVERAL RESTRUCTURING CHARGES A YEAR EARLIER THE COATESVILLE PENNSYLVANIA STEEL PLATE MAKER HAD NET INCOME OF EIGHT POINT FIVE MILLION DOLLARS OR FIFTY FIVE CENTS A SHARE LUKENS SAID THE LOSS REFLECTS TWENTY POINT FIVE MILLION DOLLARS IN PRETAX PROVISIONS FOR WORK FORCE REDUCTIONS VALUATION OF DISCONTINUED OPERATIONS AND OTHER CHARGES THE CHARGES TAKEN IN THE CURRENT QUARTER REDUCED THE EARNINGS PER SHARE AMOUNT BY EIGHTY FIVE CENTS LUKENS SAID FISCAL FOURTH QUARTER SALES DECREASED SLIGHTLY TO TWO HUNDRED TWO POINT SEVEN MILLION DOLLARS FROM TWO HUNDRED FOUR POINT EIGHT MILLION DOLLARS THE YEAR BEFORE FOR ALL OF FISCAL NINETEEN NINETY THREE LUKENS REPORTED A NET LOSS OF FIFTY MILLION DOLLARS OR THREE DOLLARS AND FIFTY ONE CENTS A SHARE REFLECTING ADOPTION OF SEVERAL ACCOUNTING CHANGES RELATED TO RETIREE MEDICAL AND LIFE INSURANCE BENEFITS AND ACCOUNTING FOR INCOME TAXES IN FISCAL NINETEEN NINETY TWO LUKENS EARNED THIRTY THREE POINT ONE MILLION DOLLARS OR TWO DOLLARS AND THIRTY ONE CENTS A SHARE FISCAL NINETEEN NINETY THREE SALES TOTALED EIGHT HUNDRED SIXTY TWO POINT ONE MILLION DOLLARS UP FROM SIX HUNDRED NINETY FIVE POINT EIGHT MILLION DOLLARS THE YEAR BEFORE BRIDGESTONE SLASH FIRESTONE INCORPORATED SAID IT WILL RAISE BY THREE PERCENT THE PRICES OF ALL BRIDGESTONE AND FIRESTONE PASSENGER LIGHT TRUCK MEDIUM AND HEAVY TRUCK AGRICULTURAL AND FORESTRY TIRES IN THE U. S. REPLACEMENT MARKET THE BOOST TAKES EFFECT APRIL FIRST THE NASHVILLE TENNESSEE COMPANY CITED QUOTE THE ESCALATION IN RAW MATERIAL COSTS INCLUDING BOTH NATURAL AND SYNTHETIC RUBBER QUOTE THE MOVE FOLLOWS SIMILAR PRICE INCREASES IN RECENT WEEKS BY RIVALS BRIDGESTONE SLASH FIRESTONE IS A UNIT OF BRIDGESTONE CORPORATION OF JAPAN LAST MONTH BRIDGESTONE SLASH FIRESTONE'S DAYTON TIRE COMPANY UNIT ANNOUNCED A THREE PERCENT TO FIVE PERCENT PRICE INCREASE ON ITS DAYTON AND ROAD KING LINES AS WELL AS PRIVATE LABEL LINES AND AN AVERAGE THREE PERCENT PRICE INCREASE ON ITS SEIBERLING TIRES EFFECTIVE MARCH FIRST SHARP MICROELECTRONICS TECHNOLOGY INCORPORATED SAID IT WILL SPEND THIRTY MILLION DOLLARS TO EXPAND A LIQUID CRYSTAL DISPLAY OR L. C. D. FACILITY AT ITS CAMAS WASHINGTON HEADQUARTERS THE PLANT WILL BEGIN PRODUCING TEN THOUSAND ACTIVE MATRIX COLOR L. C. D. UNITS A MONTH BY OCTOBER SHARP SAID THE UNIT OF JAPAN BASED SHARP CORPORATION SAID THE EXPANSION IS NEEDED TO MEET THE STRONG DEMAND FOR THE L. C. D. PANELS USED IN COLOR LAPTOP AND NOTEBOOK COMPUTERS IN ADDITION TO THE PRODUCTION EXPANSION SHARP IS ALSO ESTABLISHING AN ADVANCED TECHNOLOGY DEVELOPMENT CENTER FOR L. C. D. RESEARCH THE WORK FORCE IS EXPECTED TO INCREASE TO FIVE HUNDRED TEN BY THE END OF NEXT YEAR FROM THREE HUNDRED FIFTY IT SAID ROCHESTER TELEPHONE CORPORATION ANNOUNCED A VOLUNTARY EARLY RETIREMENT PLAN THAT INCLUDES ENHANCED PENSION BENEFITS AND SAID IT EXPECTS THAT FIFTY TO ONE HUNDRED OF ITS EMPLOYEES WILL OPT FOR IT THE ROCHESTER N. Y. COMPANY SAID THAT UNDER THE PROGRAM IT WILL GRANT CERTAIN ELIGIBLE EMPLOYEES AN ADDITIONAL FIVE YEARS' WORTH OF AGE AND SERVICE ACCRUED AS OF MARCH THIRTY FIRST NINETEEN NINETY FOUR WHICH WILL BE CONSIDERED WHEN DETERMINING AN EMPLOYEE'S PENSION ROCHESTER TELEPHONE SAID IT ESTIMATES THAT ABOUT ONE THOUSAND FOUR HUNDRED OF ITS WORKERS ARE ELIGIBLE FOR THE PROGRAM WITH FOUR HUNDRED OF THEM ELIGIBLE TO RECEIVE A SERVICE PENSION IMMEDIATELY THOSE EMPLOYEES WHO DECIDE TO RETIRE BY MARCH THIRTY FIRST AND WHO DECLARE THEIR INTENTION BY MARCH FIFTEENTH WILL RECEIVE THE PREPENSION LEAVE BENEFIT WHICH IS BEING DISCONTINUED THE COMPANY SAID AMERICA WEST AIRLINES SAID IT EXTENDED A FARE SALE THAT OFFERS DISCOUNTS OF AS MUCH AS A THIRD OFF ITS LEISURE CLASS TICKETS THE AIRLINE SAID TICKETS MUST BE PURCHASED BY FEBRUARY TWENTY SECOND FOR TRAVEL BY MAY FIFTEENTH AND REQUIRE FOURTEEN DAY ADVANCE PURCHASE AND A SATURDAY NIGHT STAY PHOENIX BASED AMERICA WEST HAS OFFERED THESE LOWER FARES OFF AND ON FOR THE PAST YEAR A SPOKESWOMAN SAID QUOTE AND THEY'VE BEEN VERY SUCCESSFUL FOR US QUOTE OTHER AIRLINES ARE LIKELY TO MATCH THE LOWER TICKET PRICES IN MARKETS WHERE THEY COMPETE HEAD TO HEAD WITH AMERICA WEST CABLETRON SYSTEMS INCORPORATED NEXT WEEK WILL UNVEIL A NEXT GENERATION COMPUTER NETWORK HUB PUSHING THE COMPANY INTO NEW MARKETS SAID CRAIG BENSON CHAIRMAN AND CHIEF OPERATING OFFICER MR. BENSON SAID THE PRODUCT WILL OFFER MORE DATA CAPACITY THAN COMPETITORS' PRODUCTS AND QUOTE WILL HAVE A MAJOR IMPACT ON CABLETRON'S REVENUE LATER THIS YEAR AND IN NINETEEN NINETY FIVE QUOTE HE SAID THE ROCHESTER N. H. COMPANY HAS SPENT ONE HUNDRED MILLION DOLLARS DEVELOPING THE NEW LINE THE PRODUCT WILL BE UNVEILED MONDAY AND THE FIRST UNITS WILL BE SHIPPED IN MAY RICK KIMBALL AN ANALYST AT MONTGOMERY SECURITIES EXPECTS CABLETRON TO POST NET INCOME FOR THE FISCAL FOURTH QUARTER ENDING FEBRUARY TWENTY EIGHTH OF THIRTY TWO POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND FIFTEEN CENTS A SHARE ON REVENUE OF ONE HUNDRED SIXTY SEVEN MILLION DOLLARS IN THE YEAR EARLIER PERIOD NET WAS TWENTY FOUR POINT FIVE MILLION DOLLARS OR EIGHTY SEVEN CENTS ON REVENUE OF ONE HUNDRED TWENTY THREE MILLION DOLLARS PREUSSAG A. G. HANOVER GERMANY REPORTED A FIFTY SIX PERCENT PLUNGE IN FISCAL NINETEEN NINETY THREE PROFIT AND ANNOUNCED A MANAGEMENT SHAKEUP THE METALS AND ENGINEERING CONCERN SAID GROUP PROFIT DROPPED TO ONE HUNDRED NINETY THREE MILLION MARKS ONE HUNDRED ELEVEN POINT THREE MILLION DOLLARS IN THE YEAR ENDED SEPTEMBER THIRTIETH FROM FOUR HUNDRED FORTY MILLION MARKS A YEAR EARLIER THE YEARLY DIVIDEND HOWEVER WILL REMAIN AT TEN MARKS A SHARE THE COMPANY SAID PREUSSAG DIDN'T ELABORATE ON THE PROFIT DECLINE BUT THE RESULT PARTLY REFLECTS A PREVIOUSLY ANNOUNCED LOSS OF ONE HUNDRED THREE MILLION MARKS AT THE COMPANY'S FIFTY ONE PERCENT OWNED FRENCH SUBSIDIARY METALEUROP S. A. PREUSSAG PREVIOUSLY REPORTED THAT FISCAL NINETEEN NINETY THREE GROUP SALES FELL EIGHT POINT NINE PERCENT TO TWENTY THREE POINT THREE BILLION MARKS MEANWHILE PREUSSAG SAID MANAGEMENT BOARD MEMBERS MAXIMILIAN ARDELT AND SIEGFRIED JAECK WILL STEP DOWN IMMEDIATELY QUOTE BY MUTUAL AGREEMENT QUOTE THE DEPARTURES ARE PART OF A GENERAL REORGANIZATION IN PREUSSAG'S MANAGEMENT BOARD A COMPANY SPOKESMAN SAID OHM CORPORATION SAID IT WAS AWARDED A TWO HUNDRED FIFTY MILLION DOLLAR ENVIRONMENTAL REMEDIATION CONTRACT BY THE U. S. NAVY FOR AN INITIAL BASE PERIOD WHICH MAY BE EXTENDED FOR FOUR ADDITIONAL OPTION PERIODS THE TWO HUNDRED FIFTY MILLION DOLLARS POTENTIAL VALUE EXTENDS OVER THE FIVE YEARS THE CONTRACT PROVIDES THAT OHM WILL CLEAN UP ENVIRONMENTALLY CONTAMINATED SITES AT NAVY MARINE CORPS AND OTHER GOVERNMENT INSTALLATIONS LOCATED IN HAWAII GUAM AND OTHER PACIFIC AND INDIAN OCEAN AREAS OHM OF FINDLAY OHIO IS AN ON SITE HAZARDOUS WASTE REMEDIATION FIRM WITH ANNUAL REVENUE OF TWO HUNDRED NINE MILLION DOLLARS IN NINETEEN NINETY TWO A TABLE ACCOMPANYING TUESDAY'S ARTICLE ON BROKERAGE HOUSE STOCK PICKS CONTAINED ERRORS HARCOURT GENERAL INCORPORATED DECLINED NINETEEN PERCENT NOT TWENTY SEVEN PERCENT WHILE RECOMMENDED BY C. S. FIRST BOSTON CORPORATION IN THE FOURTH QUARTER THE FIRM'S BIGGEST QUARTERLY LOSER THEREFORE WASN'T HARCOURT BUT UNION TEXAS PETROLEUM HOLDINGS INCORPORATED DOWN TWENTY THREE PERCENT AS A RESULT C. S. FIRST BOSTON'S LIST WAS UP ZERO POINT ONE PERCENT FOR THE QUARTER INSTEAD OF DOWN ZERO POINT ONE PERCENT FOR THE YEAR IT WAS UP TWELVE POINT FOUR PERCENT NOT TWELVE POINT TWO PERCENT THE BIGGEST WINNER RECOMMENDED BY RAYMOND JAMES AND ASSOCIATES INCORPORATED IN THE QUARTER WAS CORDIS CORPORATION UP FIFTY FOUR PERCENT RATHER THAN STANLEY FURNITURE COMPANY UP FORTY ONE PERCENT THE ERRORS WERE MADE BY ZACKS INVESTMENT RESEARCH INCORPORATED WHICH PREPARED THE TABLE EASTMAN KODAK COMPANY'S STOCK CLOSED AT FORTY FOUR POINT ONE TWO FIVE DOLLARS A SHARE ON JANUARY THIRTY FIRST DOWN ZERO POINT EIGHT PERCENT FROM DECEMBER THIRTY FIRST NINETEEN NINETY THREE YESTERDAY'S INVESTMENT INSIGHT TABLE INCORRECTLY STATED THAT THE STOCK FELL TWENTY ONE POINT FIVE SIX PERCENT BECAUSE IT FAILED TO ACCOUNT FOR THE SPINOFF OF EASTMAN CHEMICAL COMPANY AMERICAN BARRICK RESOURCES CORPORATION'S REPORTED A TWENTY ONE PERCENT DECLINE IN FOURTH QUARTER EARNINGS AND ANNOUNCED A JOINT VENTURE TO DEVELOP GOLD PROPERTIES IN CHINA THE TORONTO GOLD PRODUCER SAID NET INCOME FELL TO FIFTY ONE POINT EIGHT MILLION DOLLARS FROM SIXTY FIVE POINT FIVE MILLION DOLLARS A YEAR EARLIER QUOTE WHEN GRADE WAS UNUSUALLY HIGH QUOTE AT THE COMPANY'S GOLDSTRIKE MINE IN NEVADA REVENUE DROPPED TO ONE HUNDRED SEVENTY POINT TWO MILLION DOLLARS FROM TWO HUNDRED MILLION DOLLARS FOR ALL NINETEEN NINETY THREE EARNINGS ROSE TWENTY TWO PERCENT TO TWO HUNDRED THIRTEEN POINT FOUR MILLION DOLLARS AS REVENUE CLIMBED TO SIX HUNDRED SIXTY SEVEN POINT FIVE MILLION DOLLARS FROM FIVE HUNDRED FORTY POINT FOUR MILLION DOLLARS GOLD PRODUCTION REACHED ONE POINT SIX MILLION OUNCES COMPARED WITH ONE POINT THREE MILLION OUNCES A YEAR EARLIER BARRICK SAID IT FORMED A JOINT VENTURE WITH POWER CORPORATION OF CANADA TO DEVELOP GOLD PROPERTIES IN CHINA ROBERT SMITH BARRICK'S PRESIDENT SAID THE COMPANY WILL COMPLETE A FEASIBILITY STUDY THIS YEAR FOR A PROPERTY IN NORTHERN CHINA AND OTHER PROPERTIES ARE BEING EXAMINED POWER CORPORATION A MONTREAL FINANCIAL SERVICES AND MEDIA CONCERN WILL HOLD TWENTY FIVE PERCENT OF THE VENTURE AND BARRICK WILL HOLD THE REST QUOTE WE'RE NOT AN EASY PAPER TO FALL INTO QUOTE NEW YORK TIMES PUBLISHER ARTHUR OCHS QUOTE PUNCH QUOTE SULZBERGER ONCE REMARKED TOWARD THE END OF HIS CAREER YOU'VE GOT TO WORK AT IT YOU COULD SAY THE SAME THING ABOUT EDWIN DIAMOND'S BOOK BEHIND THE TIMES INSIDE THE NEW YORK TIMES VILLARD FOUR HUNDRED FORTY EIGHT PAGES TWENTY FOUR DOLLARS MR. DIAMOND MAKES HIS LIVING AS A MEDIA CRITIC FOR NEW YORK MAGAZINE WHICH MEANS THAT HE WRITES ABOUT WHAT OTHER PEOPLE WRITE AND SOMETIMES WRITES ABOUT WHAT OTHER PEOPLE HAVE WRITTEN ABOUT WHAT OTHER PEOPLE HAVE WRITTEN BEHIND THE TIMES IS PRIMARILY DEVOTED TO THE LAST THIRTY YEARS IN TIMES HISTORY WHEN EDITOR A. M. ABE ROSENTHAL AND HIS SUCCESSOR MAX FRANKEL BROADENED THE SCOPE OF THE PAPER BY MAKING IT LIGHT AND UP MR. DIAMOND PORTRAYS MR. ROSENTHAL AS A FIERCELY TERRITORIAL MAN WHO OUTMANEUVERED MORE GIFTED RIVALS THROUGH TENACITY AND AN ABILITY TO INTUIT THE WISHES OF THE SULZBERGER FAMILY WHICH HAS OWNED THE TIMES SINCE ONE THOUSAND EIGHT HUNDRED NINETY SIX ONE OF THOSE WISHES WAS TO KEEP THE TIMES PROFITABLE DURING AN ERA WHEN AMERICANS WERE READING FEWER PAPERS AND WATCHING MORE T. V. MR. ROSENTHAL DID THIS BY ADDING PUFFY MAGAZINE LIKE SECTIONS AND PLACING GREAT EMPHASIS ON FOOD FASHION COMPUTERS ROCK AND ROLL AND THE FATE OF THE DINOSAURS THE HISTORY OF DUMBING DOWN WON'T COME AS A SURPRISE TO SEASONED TIMES READERS NOR WILL MR. DIAMOND'S REHASHES OF SUCH WIDELY DISCUSSED CONTROVERSIES AS THE TIMES' DECISION TO PUBLISH THE NAME OF THE YOUNG WOMAN ALLEGEDLY RAPED BY WILLIE KENNEDY SMITH OR TO TREAT THE PUBLICATION OF KITTY KELLEY'S SCURRILOUS BOOK ABOUT THE REAGAN FAMILY AS A NEWS STORY MUCH OF THE BOOK SEEMS LIKE AN OPPORTUNITY FOR MR. DIAMOND TO RECYCLE WELL WORN MATERIAL AND TO SUPPLY INCONTROVERTIBLE EVIDENCE THAT EMPLOYEES OF THE TIMES ARE NOT AN ESPECIALLY MIRTHFUL LOT THERE ARE ALSO WOEFUL OMISSIONS MR. DIAMOND APPARENTLY ISN'T AWARE THAT ONE FOURTH OF THE DAILY TIMES IS DEVOTED TO BUSINESS NEWS A SECTION THAT HAS VASTLY IMPROVED IN THE PAST DECADE STILL THERE ARE NICE FLOURISHES IN RECOUNTING HOW EDITORIAL PAGE EDITOR JOHN OAKES WAS DEPOSED BY HIS OWN COUSIN PUNCH AND HOW MR. ROSENTHAL HIMSELF WAS NUDGED INTO SEMI RETIREMENT AS A PART TIME PONTIFICATOR MR. DIAMOND SUGGESTS THAT EMPLOYEES ONLY APPEAR TO BE RUNNING THE SHIP THAT ALL THE IMPORTANT MANAGERIAL DECISIONS ARE CARRIED OUT BY THE SECRET HAND OF THE SULZBERGERS MR. DIAMOND DOES A GOOD JOB OF FLESHING OUT MR. ROSENTHAL AS A RUTHLESS PRACTITIONER OF MANAGEMENT BY NASTY MEMO HE ALSO PROVIDES FINE EXAMPLES OF THE PAPER'S FAMOUS IMPERSONALITY NOTES SPORTSWRITER DAVE ANDERSON A TWENTY EIGHT YEAR VETERAN QUOTE IF VINCENT CANBY OR ANNA QUINDLEN GOT ON THIS ELEVATOR WITH ME TODAY I WOULDN'T RECOGNIZE EITHER OF THEM QUOTE ON MS. QUINDLEN MR. DIAMOND QUITE ADMIRABLY NOTES THAT THE CROWN PRINCESS OF YUPPIE WHINERS HASN'T HAD AN ORIGINAL THOUGHT IN YEARS HE ALSO TAKES A SHOT AT THE TIMES FOR ELEVATING PINHEAD MUSIC CRITIC JON PARELES TO A POSITION OF POWER MR. PARELES IS THE ADDLED YOUTH WHO HAS REPEATEDLY GONE TO BAT FOR ANTI SEMITIC HOMOPHOBIC SOCIOPATHIC SEXIST GANGSTA RAPPERS AS PART OF THE NEWSPAPER'S OFTEN PATHETIC ATTEMPT TO SEEM CUTTING EDGE MR. PARELES IS JUST THE SORT OF BONEHEAD THAT JOHN CORRY VAINLY ATTEMPTED TO TAKE ON DURING THE WANING DAYS OF HIS THIRTY ONE YEAR STINT AT THE TIMES MR. CORRY WHO STARTED OUT AS A COPY BOY IS THE AUTHOR OF MY TIMES ADVENTURES IN THE NEWS TRADE PUTNAM TWO HUNDRED FORTY EIGHT PAGES TWENTY FOUR DOLLARS AND NINETY FIVE CENTS THIS IS A VERY READABLE MEMOIR BY A MAN WHO AFTER A LIFETIME OF EXEMPLARY WORK FOR THE TIMES FOUND HIMSELF GENTLY ENCOURAGED BY MR. FRANKEL TO GO ELSEWHERE WHAT GOT MR. CORRY IN TROUBLE WERE HIS BLATANTLY RIGHT OF CENTER ARTICLES WRITTEN WHEN HE SERVED AS THE PAPER'S FIRST T. V. NEWS CRITIC IN THE MID NINETEEN EIGHTIES RIPPING INTO SIXTY MINUTES FOR DISMANTLING THE DISTINCTION BETWEEN ENTERTAINMENT AND JOURNALISM MR. CORRY CLAIMS THAT THE POWERS THAT BE AT C. B. S. USED EVERY POWER AVAILABLE TO HAVE HIM MUZZLED MR. CORRY ALSO MADE WAVES BY SUGGESTING THAT AN A. B. C. MOVIE ENCOURAGING COMPASSION TOWARD CHILD MOLESTERS WAS IDIOTIC LONG BEFORE HIS MISFORTUNES AS T. V. NEWS CRITIC MR. CORRY HAD CREATED PROBLEMS FOR HIMSELF BY CROSSING THE FLATULENT JAMES RESTON ANNA QUINDLEN WITH A PIPE AND BY WRITING AN ARTICLE CONTENDING THAT THE POLISH EMIGRE NOVELIST JERZY KOSINSKI HAD BEEN THE VICTIM OF A PLOT BY POLISH COMMUNISTS TO PERSUADE THE WESTERN PRESS THAT HIS BOOKS HAD BEEN GHOSTWRITTEN AND THAT HE HIMSELF WAS CONNECTED TO THE C. I. A. OFTEN MY TIMES READS LIKE THE MEMOIRS OF A CRANKY OLD GEEZER WHY DON'T THESE CUB REPORTERS DRINK ANY ROTGUT AND WHERE THE HELL DID ALL THESE WOMEN COME FROM AND MR. CORRY TELLS US FAR MORE ABOUT HIS PERSONAL LIFE THAN WE NEED TO KNOW BUT HE MAKES UP FOR THIS WITH A BITTERSWEET WELL WRITTEN PAEAN TO AN INSTITUTION THAT NO LONGER EXISTS THE HARD NEWS NO NONSENSE TIMES AND HE COMES AS CLOSE AS ANYONE HAS EVER COME TO EXPLAINING WHY EVEN SO YOUNG PEOPLE STILL BECOME JOURNALISTS INSTEAD OF LAWYERS OR UPSCALE CATERERS WHEN HE SAYS EACH STORY I WROTE DEFINED ME IN A SOCIETY WHERE SO MANY ACHE TO BE HEARD A BYLINE WAS BETTER THAN MONEY QUOTE IT STILL IS THE FORT LAUDERDALE FLORIDA VIDEO AND MUSIC RETAILER'S RESULTS CAME IN AT THE HIGH END OF ANALYSTS' ESTIMATES FOURTH QUARTER NET INCOME ROSE TO EIGHTY ONE POINT THREE MILLION DOLLARS OR THIRTY FOUR CENTS A SHARE FROM FORTY SEVEN POINT SIX MILLION DOLLARS OR TWENTY THREE CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED SIXTY SIX PERCENT TO SEVEN HUNDRED TWENTY THREE POINT SEVEN MILLION DOLLARS FROM FOUR HUNDRED THIRTY SIX POINT SEVEN MILLION DOLLARS REVENUE AT BLOCKBUSTER VIDEO STORES OPEN FOR MORE THAN A YEAR INCREASED FIVE POINT FIVE PERCENT IN THE QUARTER AND NINE POINT TWO PERCENT FOR THE YEAR SAME STORE SALES FIGURES FOR THE COMPANY'S MUSIC STORES AREN'T YET AVAILABLE GREGORY K. FAIRBANKS BLOCKBUSTER'S VICE CHAIRMAN SAID THIRTY FIVE PERCENT OF FOURTH QUARTER REVENUE AND THIRTY TWO PERCENT OF OPERATING PROFIT CAME FROM THE COMPANY'S MUSIC RETAILING PROGRAMMING AND DISTRIBUTION OPERATIONS DURING THE FOURTH NINETEEN NINETY TWO QUARTER WHEN BLOCKBUSTER WAS IN THE PROCESS OF MAKING ACQUISITIONS IN THOSE AREAS ONLY SEVENTEEN PERCENT OF REVENUE AND LESS THAN TEN PERCENT OF OPERATING PROFIT WAS GENERATED BY THE COMPANY'S NONVIDEO BUSINESSES MR. FAIRBANKS SAID CRAIG BIBB AN ANALYST AT PAINEWEBBER SAID BLOCKBUSTER CONTINUES TO REAP THE BENEFITS OF THOSE ACQUISITIONS THE PROFITABILITY OF THE MUSIC STORES HAS BEEN BETTER THAN EXPECTED PARTLY BECAUSE OF THE SUCCESSFUL INTEGRATION OF THE MUSIC CHAIN'S BACK OFFICE OPERATIONS INTO BLOCKBUSTER ALSO SYNDICATION REVENUE FROM SPELLING ENTERTAINMENT GROUP PROGRAMS HAS BEEN STRONG HE ADDED BLOCKBUSTER OWNS SEVENTY POINT FIVE PERCENT OF SPELLING AS WELL AS THIRTY FIVE PERCENT OF REPUBLIC PICTURES CORPORATION SPELLING AND REPUBLIC WHICH PRODUCE AND DISTRIBUTE FILM AND TELEVISION SHOWS HAVE ANNOUNCED PLANS TO MERGE A MOVE THAT IS EXPECTED TO BE COMPLETED BY THE END OF MARCH BLOCKBUSTER ITSELF IS BEING ACQUIRED BY VIACOM INCORPORATED AN ENTERTAINMENT COMPANY WITH INTERESTS IN CABLE T. V. RADIO AND OTHER RELATED BUSINESSES BLOCKBUSTER SAID YESTERDAY THAT THE TRANSACTION IS LIKELY TO BE COMPLETED IN THE SECOND QUARTER FOR THE YEAR BLOCKBUSTER SAID EARNINGS JUMPED SIXTY FOUR PERCENT TO TWO HUNDRED FORTY THREE POINT SIX MILLION DOLLARS OR ONE DOLLAR AND TEN CENTS A SHARE FROM ONE HUNDRED FORTY EIGHT POINT THREE MILLION DOLLARS OR SEVENTY SIX CENTS A SHARE A YEAR EARLIER REVENUE ROSE SIXTY NINE PERCENT TO TWO POINT TWO THREE BILLION DOLLARS FROM ONE POINT THREE TWO BILLION DOLLARS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BLOCKBUSTER STOCK DROPPED SEVENTY FIVE CENTS TO TWENTY SIX POINT EIGHT SEVEN FIVE DOLLARS A SHARE SOME ANALYSTS SAID BLOCKBUSTER'S STRONG RESULTS TOOK A BACK SEAT TO CONCERNS ABOUT THE VIACOM SLASH BLOCKBUSTER BID FOR PARAMOUNT COMMUNICATIONS INCORPORATED PAUL MARSH OF NATWEST SECURITIES CORPORATION LOWERED HIS RATING ON BLOCKBUSTER STOCK FROM QUOTE ACCUMULATE QUOTE TO QUOTE BUY QUOTE BECAUSE OF WHAT HE SAW AS FUTURE VULNERABILITY IN BLOCKBUSTER'S STOCK PRICE LATE AFTERNOON SUNLIGHT GLINTS OFF THE STEEL SKELETON OF A MODEL HOUSE HOME BUILDERS HERE FOR A RECENT CONVENTION STOMP ACROSS A FLOOR SCREWED TO THE STEEL FRAME TESTING ITS STRENGTH OTHERS PROD POKE AND KICK AT THE STRANGE BEAST ONE THROWS UP HIS HANDS AND WAILS QUOTE SO THIS IS THE FUTURE QUOTE MAYBE FOR YEARS A FEW BUILDERS HAVE USED STEEL INSTEAD OF WOOD TO FRAME HOUSES AND SKYROCKETING LUMBER PRICES HAVE TRIGGERED A SURGE IN THOSE USING OR INTERESTED IN THE MATERIAL BUT SOME BUILDERS ARGUE THAT IF STEEL REALLY BITES INTO THE LUMBER MARKET THE PRESSURE ON THE TIMBER SUPPLY WILL DECREASE AND THE PRICE WILL DROP STILL TIMBER PRICES HAVE NEARLY DOUBLED IN THE PAST TWO YEARS ADDING AS MUCH AS FIVE THOUSAND DOLLARS TO THE COST OF A HOUSE AND BECAUSE OF LAWSUITS BY ENVIRONMENTALISTS EVEN THE MEAGER AMOUNT OF LUMBER THE CLINTON ADMINISTRATION PROMISED FROM FEDERAL LAND HASN'T BEEN CUT THAT HAS CREATED A SHORTAGE THAT COULD SEND PRICES CLIMBING ANOTHER TWENTY PERCENT ACCORDING TO LYNN O. MICHAELIS CHIEF ECONOMIST AT WEYERHAEUSER COMPANY A TACOMA WASHINGTON TIMBER CONCERN AS A RESULT BUILDERS ARE LOOKING FOR ALTERNATIVES TO WOOD AND THE MOST WIDELY TOUTED IS GALVANIZED STEEL EVERYBODY'S LOOKING AT IT SAYS ROBERT LEWIS PRESIDENT OF LEWIS HOMES OF NEVADA PROPONENTS RHAPSODIZE ABOUT THE MATERIAL THREE TO FOUR RECYCLED CARS WILL PRODUCE A STEEL HOUSE FRAME COMPARED WITH FIFTEEN THOUSAND BOARD FEET OF LUMBER STEEL DOESN'T BURN WARP ROT OR ATTRACT TERMITES AND FIRE INSURANCE DROPS ON STEEL HOUSES SCREWED TOGETHER INSTEAD OF NAILED STEEL HOMES HAVE WEATHERED HURRICANES BETTER THAN TRADITIONAL HOUSES WHOSE ROOFS BLOW OFF WHEN NAILS PULL OUT BUILDERS' INTEREST IN STEEL MOVES IN LOCK STEP WITH LUMBER PRICES A FEW RESIDENTIAL BUILDERS HAVE USED STEEL SINCE THE NINETEEN TWENTIES AND INTERMITTENT LUMBER PRICE SPIKES HAVE PIQUED CURIOSITY ABOUT THE MATERIAL WHICH COSTS ABOUT THE SAME AS WOOD AT CURRENT PRICES A SURVEY BY THE NATIONAL ASSOCIATION OF HOME BUILDERS RECENTLY FOUND THAT ELEVEN PERCENT OF THOSE QUESTIONED ALREADY USE STEEL FRAMING AND A THIRD PLAN TO TRY THE MATERIAL TWO YEARS AGO THE ASSOCIATION FOUND ONLY TWENTY PERCENT INTERESTED AND A SCANT ONE PERCENT USING ANY STEEL THE AMERICAN IRON AND STEEL INSTITUTE EXPECTS SEVENTY FIVE THOUSAND STEEL HOMES TO BE PUT TOGETHER THIS YEAR UP FROM TWENTY THOUSAND LAST YEAR AND A MERE FIVE HUNDRED IN NINETEEN NINETY TWO BUT THERE IS ALSO RESISTANCE THERE HAS BEEN A LOT OF HOOPLA ABOUT STEEL EVERYTIME THERE'S A LUMBER CRISIS SAYS ROBERT I. TOLL CHAIRMAN AND CHIEF EXECUTIVE OF TOLL BROTHERS INCORPORATED A LARGE BUILDER IN HUNTINGDON VALLEY PENNSYLVANIA JUST AS SOON AS YOU GET READY TO PUT IN YOUR ORDER FOR STEEL STUDS LUMBER PRICES COME DOWN I WON'T BECOME INTERESTED IN STEEL UNTIL IT BECOMES SIGNIFICANTLY CHEAPER THAN LUMBER AND WE SEE HOW THE CONSUMERS REACT ADDS IRA C. NORRIS CHAIRMAN AND CHIEF EXECUTIVE OF INCO HOMES CORPORATION IN UPLAND CALIFORNIA SO DO BUILDERS WHICH EXPLAINS THE SKEPTICISM AT THE HOME BUILDERS CONVENTION HERE RECENTLY WHEN THOUSANDS OF PEOPLE INSPECTED A ONE THOUSAND THREE HUNDRED FIFTY SQUARE FOOT STEEL FRAME CONSTRUCTION IN A PARKING LOT BUILDERS ALSO HAVE OTHER OPTIONS THAN STEEL INCLUDING CONSTRUCTING FEWER OR SMALLER HOMES AND USING LESS WOOD POURING CONCRETE PATIOS SAY INSTEAD OF PUTTING IN A WOOD DECK MORE THAN A THIRD OF THOSE IN THE ASSOCIATION SURVEY SAID THEY WERE ALREADY USING ENGINEERED WOOD PRODUCTS IN WHICH CHEAP WOOD PARTS ARE GLUED TOGETHER AND ALMOST A QUARTER SAID THEY WOULD USE THEM IN THE FUTURE IT'S NOT STEEL VERSUS WOOD I USE A LOT OF WOOD QUOTE SAYS BRUCE WARD A BUILDER FROM SALEM OREGON WHOSE COMPANY RESTEK INCORPORATED PROMOTES THE USE OF STEEL AND TEACHES OTHERS HOW TO BUILD WITH IT MR. WARD HAS BEEN MAKING HOMES OUT OF LIGHT GAUGE STEEL FOR SIXTEEN YEARS I THINK IT'S A SUPERIOR PRODUCT HE SAYS CLAD IN WOOD AND OTHER TRADITIONAL MATERIALS STEEL HOMES DON'T LOOK ANY DIFFERENT STEEL DOES HAVE PROBLEMS THOUGH METAL IS MORE CONDUCTIVE THAN WOOD SO IT HEATS UP AND COOLS OFF FASTER AND THUS REQUIRES MORE INSULATION AFTER SITTING AT A BUILDING SITE IN THE HOT SUN STEEL STUDS CAN BURN UNGLOVED HANDS AND WHILE INTERIOR STEEL STUDS ARE FAIRLY WIDELY AVAILABLE EXTERIOR STEEL FRAMING MATERIAL STILL ISN'T WIDELY DISTRIBUTED BUT THE BIGGEST DRAWBACK IS UNFAMILIARITY FEW CONSTRUCTION WORKERS KNOW THE MATERIAL WELL AND ITS INTRODUCTION SLOWS DOWN BUILDING THOUGH BACKERS SAY THAT CREWS CAN BE UP TO SPEED WITH STEEL AFTER A FEW PROJECTS STEEL'S KEY SELLING POINT IS ITS RELATIVE PRICE STABILITY COMPARED WITH TIMBER'S FREQUENT ROLLERCOASTER RIDES LAST WEEK LUMBER WAS SELLING FOR THREE HUNDRED SEVENTY DOLLARS PER THOUSAND BOARD FEET UP TEN PERCENT FROM A YEAR AGO BUT DOWN TWENTY EIGHT PERCENT FROM ITS PEAK IN DECEMBER WE GOT SLAUGHTERED FOR TWO MILLION DOLLARS LAST YEAR BECAUSE OF PRICE SPIKES SAYS MR. TOLL STEEL PRICES MEANWHILE ARE UP LESS THAN TEN PERCENT THIS YEAR AND CAPACITY CAN BE INCREASED IN A YEAR TO RESPOND TO DEMAND THAT MEANS THAT DEVELOPMENTS IN THE HOUSING MARKET ARE BEING WATCHED CLOSELY IN TIMBER COUNTRY STEEL WILL MAKE SOME INROADS CONCEDES MR. MICHAELIS THE WEYERHAEUSER ECONOMIST IF LUMBER PRICES DO COME BACK DOWN THE QUESTION IS WILL BUILDERS COME BACK TO TRADITIONAL PRODUCTS MOTOROLA INCORPORATED ONE OF THE MOST PROMINENT U. S. SUCCESS STORIES IN JAPAN HAS HAD TO FIGHT AGAINST JAPAN INCORPORATED FOR THE ACCESS TO JAPAN'S MARKET IT HAS ACQUIRED NOW MOTOROLA IS ONCE AGAIN IN A BATTLE TO GAIN QUOTE COMPARABLE QUOTE ACCESS WHERE IT FEELS IT HAS BEEN DENIED IN A REPRISE OF A SIMILAR NINETEEN EIGHTY NINE FIGHT THE COMPANY HAS ENLISTED THE HELP OF THE U. S. GOVERNMENT WHICH WILL DECIDE BY FEBRUARY FIFTEENTH WHETHER JAPAN HAS VIOLATED ITS EARLIER AGREEMENT TO ALLOW FOREIGN COMPANIES INTO ITS CELLULAR TELEPHONE MARKET DESPITE THE PREVIOUS TRADE AGREEMENT WE WERE NOT GETTING THE KIND OF COMPARABLE MARKET ACCESS MOTOROLA EXPECTED SAYS SKIP ORR DIRECTOR OF GOVERNMENT RELATIONS AT THE COMPANY'S JAPAN UNIT IT'S BEEN A NINE YEAR PROCESS MOTOROLA HAS BENT OVER BACKWARD TO RESOLVE THIS SITUATION MOTOROLA'S EXPERIENCE DEMONSTRATES AGAIN THE FRAGILITY OF U. S. JAPAN TRADE PACTS WHICH HAVE SHOWN A DISTRESSING TENDENCY TO UNRAVEL YEARS AFTER THE TWO SIDES THOUGHT MATTERS HAD BEEN SOLVED EVEN NOW THE U. S. AND JAPAN MAY BE REPEATING THAT PROCESS IN THEIR CURRENT NEGOTIATIONS UNDER A PREVIOUSLY AGREED TRADE FRAMEWORK AN EFFORT THAT INCLUDES TALKS ON JAPAN'S PROCUREMENT OF TELECOMMUNICATIONS EQUIPMENT THE CELLULAR DISPUTE HOWEVER IS ALSO EMBLEMATIC OF THE BUSINESS AND BUREAUCRATIC OBSTACLES THAT FOREIGN HIGH TECH MANUFACTURERS PARTICULARLY THOSE IN THE AREA OF TELECOMMUNICATIONS MUST OVERCOME IN JAPAN MOTOROLA HAS THE ADVANTAGE OF ARGUING ITS CASE FROM A STRONG POSITION THANKS TO ITS TECHNOLOGY AND A CLOSE PARTNERSHIP WITH D. D. I. CORPORATION ONE OF SEVERAL NEW LONG DISTANCE COMPANIES THAT HAVE TAKEN ON FORMER MONOPOLY NIPPON TELEGRAPH AND TELEPHONE CORPORATION MOTOROLA HAS ESTABLISHED ITS CELLULAR BASE STATIONS AND PHONE HANDSETS ACROSS JAPAN THE COMPANY DOESN'T RELEASE SALES OR EARNINGS FIGURES FROM THE JAPANESE MARKET MOTOROLA IN FACT IS D. D. I.'S SOLE SUPPLIER OF CELLULAR NETWORK EQUIPMENT IN THE EIGHT GEOGRAPHIC REGIONS WHERE D. D. I. COMPETES DIRECTLY AGAINST N. T. T.'S CELLULAR SYSTEM THE MUCH SMALLER COMPANY HAS GRABBED ROUGHLY HALF THE MARKET FROM ITS LARGER RIVAL QUOTE PART OF THE REASON FOR OUR SUCCESS IN THE CELLULAR MARKET IS THAT THE MOTOROLA INFRASTRUCTURE IS SUPERIOR IN MANY MANY RESPECTS QUOTE TO THAT OF N. T. T. SAYS SACHIO SEMMOTO A SENIOR VICE PRESIDENT AT D. D. I. EVEN BUREAUCRATS AT THE MINISTRY OF POSTS AND TELECOMMUNICATIONS CONCEDE THAT MOTOROLA DOESN'T FIT THE COMMON STEREOTYPE OF THE FOREIGN COMPANY THAT DOESN'T TRY HARD ENOUGH TO SUCCEED IN JAPAN I BELIEVE MOTOROLA UNDERSTANDS THE JAPANESE MARKET VERY WELL IF YOU LOOK AT THE SUCCESS THEY'VE ALREADY HAD SAYS SHUN SAKURAI DIRECTOR OF THE POSTAL MINISTRY'S TRADE POLICY OFFICE NEVERTHELESS MOTOROLA HAS HIT A BRICK WALL IN A DENSELY POPULATED ONE HUNDRED FIFTY FIVE MILE LONG CORRIDOR THAT STRETCHES SOUTH FROM TOKYO ALONG THE EASTERN COAST OF JAPAN TO NAGOYA OUTSIDE THAT REGION MOTOROLA'S CELLULAR NETWORK EQUIPMENT SERVES ROUGHLY THREE HUNDRED SIXTY NINE THOUSAND PEOPLE INSIDE WHERE ROUGHLY HALF OF JAPAN'S ESTIMATED ONE POINT SEVEN MILLION CELLULAR SUBSCRIBERS LIVE MOTOROLA'S EQUIPMENT SERVES A MERE TWELVE THOUSAND NINE HUNDRED PEOPLE THE REASONS FOR THAT DISPARITY RUN BACK TO NINETEEN EIGHTY NINE WHEN THE U. S. AND JAPAN REACHED AN AGREEMENT AFTER LONG INSISTING OTHERWISE THE POSTAL MINISTRY SUDDENLY FOUND IT WAS ABLE TO ALLOCATE A CHUNK OF THE TOKYO NAGOYA RADIO SPECTRUM TO TACS THE CELLULAR SYSTEM USED BY MOTOROLA AND D. D. I. TACS ISN'T COMPATIBLE WITH N. T. T.'S CELLULAR SYSTEM THE MINISTRY HOWEVER DIDN'T LICENSE THE NEW FREQUENCIES TO D. D. I. WHICH ALREADY USED MOTOROLA EQUIPMENT OUTSIDE OF TOKYO AND NAGOYA INSTEAD THE MINISTRY HANDED THEM TO IDO CORPORATION ANOTHER LONG DISTANCE COMPANY WHICH HAD ALREADY BEGUN INSTALLING AN N. T. T. STYLE CELLULAR SYSTEM MR. SAKURAI SAYS THAT ALLOWING D. D. I. INTO THE TOKYO NAGOYA MARKET WOULD HAVE VIOLATED MINISTRY POLICY BY ALLOWING TOO MANY COMPETITORS IN THAT MARKET IDO SUDDENLY FOUND ITSELF INSTALLING A NEW CELLULAR NETWORK THAT WOULD COMPETE DIRECTLY WITH ITS EXISTING N. T. T. STYLE SERVICE THE RESULTS HAVEN'T PLEASED ANYONE AS OF JANUARY IDO HAD SPENT SIXTY FIVE BILLION YEN SIX HUNDRED MILLION DOLLARS TO INSTALL FOUR HUNDRED TEN BASE STATIONS FOR THE N. T. T. SYSTEM BUT ONLY THIRTY FIVE BILLION YEN ON ONE HUNDRED TEN TACS BASE STATIONS IDO HAS ONLY TWELVE THOUSAND TACS CUSTOMERS BUT IT HAS MORE THAN THREE HUNDRED THOUSAND SUBSCRIBERS TO ITS N. T. T. STYLE SYSTEM YOU CAN SEE WHY NO ONE WANTS TO USE MOTOROLA PHONES IN TOKYO OR NAGOYA SAYS ERIC GAN A TELECOMMUNICATIONS ANALYST WITH GOLDMAN SACHS JAPAN CORPORATION IDO SAYS IT'S IN THE PROCESS OF UPGRADING ITS TACS NETWORK IT PLANS TO INSTALL ANOTHER SEVENTY MOTOROLA BASE STATIONS BY APRIL AND AN ADDITIONAL ONE HUNDRED IN THE COMING YEAR OR SO MOTOROLA AND U. S. OFFICIALS HOWEVER COMPLAIN THAT THE COMPANY'S EFFORTS ARE TWO LITTLE TOO LATE U. S. OFFICIALS CLAIM THAT JAPAN HAS VIOLATED A PROMISE IN THE NINETEEN EIGHTY NINE AGREEMENT TO ENSURE COMPARABLE MARKET ACCESS IN THAT REGION IF THE U. S. FINDS JAPAN IN FORMAL VIOLATION OF THE AGREEMENT ON FEBRUARY FIFTEENTH SANCTIONS COULD RESULT JAPANESE OFFICIALS HOWEVER DENY THAT CHARGE AND HAVE RESORTED TO NARROW LEGALISMS TO REFUTE IT MR. SAKURAI ARGUES FOR EXAMPLE THAT JAPAN DIDN'T GUARANTEE COMPARABLE MARKET ACCESS ONLY MEASURES THAT WOULD REFLECT THE PRINCIPLES OF COMPARABLE MARKET ACCESS SIMILARLY JAPAN INSISTS THAT THE TOKYO NAGOYA CELLULAR MARKET IS A BUSINESS MATTER BEST LEFT TO IDO AND MOTOROLA AND THAT GOVERNMENTS HAVE NO ROLE BEYOND URGING THE COMPANIES TO TALK TO ONE ANOTHER IT'S A LITTLE DISINGENUOUS TO SAY IT'S SIMPLY A BUSINESS PROBLEM SAYS MR. ORR QUOTE ONCE THEY FORCED THIS MARRIAGE BETWEEN MOTOROLA AND IDO IT AUTOMATICALLY BECAME A GOVERNMENT ISSUE QUOTE AN AVALANCHE OF NEGATIVE NEWS STORIES CAUSED SHARES IN FOKKER N. V. TO SLIDE EIGHT POINT THREE PERCENT YESTERDAY BUT THE DUTCH AEROSPACE COMPANY DISMISSED THE REPORTS THE SHARES CLOSED AT TWENTY ONE GUILDERS TEN DOLLARS AND EIGHTY ONE CENTS ON THE AMSTERDAM EXCHANGE DOWN FROM TWENTY TWO POINT NINE OH GUILDERS TUESDAY AMID REPORTS THAT THE COMPANY FACES MASSIVE LOSSES THIS YEAR AND THAT A BOARD ROOM BATTLE MAY CLAIM ADDITIONAL VICTIMS ALREADY THIS WEEK CHAIRMAN ERIK JAN NEDERKOORN ANNOUNCED HIS DEPARTURE AFTER AN APPARENT DISAGREEMENT WITH OTHER DIRECTORS OVER ONGOING RESTRUCTURING EFFORTS FOKKER WHICH IS FIFTY ONE PERCENT CONTROLLED BY THE DEUTSCHE AEROSPACE A. G. ARM OF GERMAN INDUSTRIAL GROUP DAIMLER BENZ A. G. WAS SAID TO BE FACING LOSSES THIS YEAR OF ANYWHERE BETWEEN ONE HUNDRED EIGHT MILLION AND TWO HUNDRED SEVENTY SIX MILLION GUILDERS HOWEVER THE COMPANY ISSUED A STATEMENT SAYING THE INTERNAL REPORT USED BY THE MEDIA IS OUTDATED ALTHOUGH IT DIDN'T GIVE ANY LOSS ESTIMATES BROCK CONTROL SYSTEMS INCORPORATED IN A SURGING MARKET FOR PRODUCTIVITY AIDS EXPECTS ITS BUSINESS TO GROW FORTY PERCENT OR SLIGHTLY MORE BY NINETEEN NINETY SEVEN ITS CHIEF EXECUTIVE OFFICER SAID THE ATLANTA COMPANY WHICH PROVIDES SOFTWARE FOR AUTOMATING SALES MARKETING AND CUSTOMER SERVICE OPERATIONS ALSO SAID IT IS QUOTE VERY COMFORTABLE QUOTE WITH ANALYSTS' FOURTH QUARTER ESTIMATES WHICH CALL FOR NET INCOME OF ONE POINT FOUR MILLION DOLLARS OR THIRTY ONE CENTS A SHARE ON REVENUE OF EIGHT MILLION DOLLARS YEAR EARLIER NET WAS NINE HUNDRED SEVENTY ONE THOUSAND DOLLARS OR THIRTY CENTS A SHARE ON REVENUE OF FIVE POINT EIGHT MILLION DOLLARS RODGER JOHNSON PRESIDENT AND C. E. O. SAID HE IS ALSO COMFORTABLE WITH ANALYSTS' ESTIMATES FOR THE FULL YEAR WHICH CALL FOR EARNINGS OF SIXTY TWO CENTS A SHARE UP FROM A YEAR EARLIER FIFTY ONE CENTS A SHARE HE SAID BROCK ANTICIPATES GROWTH IN LINE WITH OR MODERATELY FASTER THAN THE INDUSTRY'S ANALYSTS EXPECT THE FIVE HUNDRED FIFTY MILLION DOLLAR ANNUAL MARKET TO GROW FORTY PERCENT BY NINETEEN NINETY SEVEN GENERAL MOTORS CORPORATION EXPECTS TO REPORT THAT ITS HUGE FINANCE UNIT EARNED ABOUT ONE BILLION DOLLARS LAST YEAR ROBERT T. O'CONNELL CHAIRMAN OF GENERAL MOTORS ACCEPTANCE CORPORATION SAID ORDINARILY THAT WOULD BE NO BIG ACCOMPLISHMENT FOR EACH OF THE PAST NINE YEARS G. M. A. C. HAS CONTRIBUTED ABOUT THAT MUCH TO ITS PARENT'S BOTTOM LINE SUCH AN OUTCOME IS ALSO REFLECTED IN WALL STREET'S ESTIMATES THAT THE PARENT COMPANY NEXT WEEK WILL REPORT NET INCOME OF MORE THAN TWO BILLION DOLLARS FOR NINETEEN NINETY THREE BUT NINETEEN NINETY THREE WAS NO ORDINARY YEAR AS THE YEAR OPENED G. M. A. C. WAS STILL RECOVERING FROM A SCANDAL THAT HAD LED TO A HOUSECLEANING OF TOP MANAGEMENT THE PARENT'S CREDIT RATING HAD BEEN DOWNGRADED JEOPARDIZING G. M. A. C.'S ABILITY TO RAISE CHEAP FUNDS FIFTEEN BILLION DOLLARS OF BANK CREDIT LINES WERE DUE FOR RENEGOTIATION AND WORRIED MANAGERS WERE EMBARKING ON A PLAN TO SHRINK THE ASSET BASE QUOTE IT WAS VERY SCARY QUOTE MR. O'CONNELL ACKNOWLEDGED G. M. A. C. RESPONDED BY GROWING MORE AGGRESSIVE IN MEETING COMPETITIVE THREATS AT THE RETAIL LEVEL REORGANIZING AND SLIMMING ITS OPERATIONS TO CUT COSTS AND SEEKING OUT CREATIVE NEW FINANCING SOURCES IT WAS ALSO LUCKY INTEREST RATES DECLINED THE MONEY MARKETS STILL LIKED G. M. A. C. COMMERCIAL PAPER DESPITE ITS LOWER RATING AND CAR SALES IMPROVED MR. O'CONNELL SAID G. M. A. C.'S SHARE OF BUSINESS INVOLVING G. M. DEALERS WAS BACK TO THIRTY ONE PERCENT BY DECEMBER AFTER DROPPING AS LOW AS TWENTY FOUR PERCENT IN MARCH NINETEEN NINETY THREE THE FIGURE HAD BEEN ABOUT THIRTY THREE PERCENT IN NINETEEN NINETY TWO AND MR. O'CONNELL EXPECTS IT TO EVENTUALLY RETURN TO ITS HISTORICAL LEVEL OF THIRTY FIVE PERCENT G. M. A. C.'S CHIEF MISSION IS TO ACT AS BANKER TO G. M. DEALERS FINANCING THEIR PURCHASES OF CARS AND TRUCKS AND MAKING LOANS TO THEIR RETAIL CUSTOMERS WITH ABOUT EIGHTY BILLION DOLLARS OF ASSETS G. M. A. C. IS BIGGER THAN ALL BUT THREE U. S. BANKS A JUMP IN BOND PRICES HELPED PUSH STOCKS HIGHER THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE GAINED ELEVEN POINT FIVE THREE POINTS TO THREE THOUSAND NINE HUNDRED SEVENTY FIVE POINT FIVE FOUR JUST SHY OF ITS RECORD OF THREE THOUSAND NINE HUNDRED SEVENTY EIGHT POINT THREE SIX STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX ROSE TWO POINT THREE EIGHT TO A RECORD FOUR HUNDRED EIGHTY TWO POINT OH OH AND THE NASDAQ COMPOSITE INDEX CLIMBED TWO POINT THREE THREE TO SEVEN HUNDRED NINETY NINE POINT FIVE SEVEN BOND PRICES RECOVERED FROM TUESDAY'S TUMBLE AS TRADERS LARGELY IGNORED FURTHER SIGNS OF AN IMPROVING ECONOMY AND FOCUSED INSTEAD ON EXPECTATIONS THAT THE FEDERAL RESERVE BOARD WILL ACT TO HEAD OFF INFLATIONARY PRESSURES IF THEY ARISE RICHARD B. BERNER CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH SAID MANY TRADERS REGARDED A SHARP JUMP IN DECEMBER NEW HOME SALES AS OLD NEWS ESPECIALLY AS IT FAILS TO TAKE INTO ACCOUNT THE SEVERE WINTER AND LOS ANGELES EARTHQUAKE THAT ARE LIKELY TO DISRUPT JANUARY HOME SALES QUOTE THE MARKET MAY BE LOOKING THROUGH THE STRONG NUMBERS TO A PRONOUNCED DROPOFF IN JANUARY QUOTE MR. BERNER SAID BOND TRADERS ALSO WERE ENCOURAGED THAT YESTERDAY'S ANNOUNCEMENT OF THE TREASURY'S PLANS FOR ITS QUARTERLY REFUNDING WAS IN LINE WITH EXPECTATIONS WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED ZERO POINT ZERO ONE TO ONE HUNDRED NINETEEN POINT OH TWO STOCK PRICES ROSE VOLUME TOTALED THREE HUNDRED TWENTY EIGHT POINT EIGHT MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND TWO HUNDRED SEVENTY NINE ISSUES ROSE AND EIGHT HUNDRED FIFTY ONE FELL BOND PRICES CLIMBED THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE GAINED ONE HALF POINT OR FIVE DOLLARS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT TWO EIGHT PERCENT THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS AT ONE POINT SEVEN THREE THREE SIX MARKS AND ONE HUNDRED SEVEN POINT EIGHT EIGHT YEN COMPARED WITH ONE POINT SEVEN THREE TWO OH MARKS AND ONE HUNDRED SEVEN POINT SEVEN OH YEN TUESDAY THE CLINTON ADMINISTRATION AS PART OF A REVAMPED IMMIGRATION STRATEGY PLANS TO INCREASE ENFORCEMENT AGAINST EMPLOYERS WHO KNOWINGLY HIRE UNDOCUMENTED WORKERS ATTORNEY GENERAL JANET RENO PLANS TO ANNOUNCE SEVERAL STEPS TO CORRECT IMMIGRATION RELATED PROBLEMS INCLUDING A REORGANIZATION OF THE IMMIGRATION AND NATURALIZATION SERVICE AT A NEWS CONFERENCE WITH I. N. S. COMMISSIONER DORIS MEISSNER TODAY INCREASED ENFORCEMENT WHICH INCLUDES HIRING AND REDEPLOYING HUNDREDS OF BORDER PATROL AGENTS OVER TWO YEARS IS ONE OF FOUR INITIATIVES DESIGNED TO IMPROVE THE I. N. S. AN AGENCY THAT HAS ACQUIRED A REPUTATION AS AN ADMINISTRATIVE BASKET CASE UNDER THE NEW IMMIGRATION STRATEGY I. N. S. AGENTS WILL STEP UP ENFORCEMENT AGAINST EMPLOYERS WHO HAVE SHOWN A QUOTE PATTERN AND PRACTICE QUOTE OF EMPLOYING UNDOCUMENTED WORKERS ACCORDING TO A CONGRESSIONAL AIDE WHO WAS BRIEFED ON THE PROGRAM EMPLOYERS MUST CHECK CERTAIN DOCUMENTS OF JOB APPLICANTS IN AN ATTEMPT TO ASCERTAIN THAT THEY AREN'T IN THE COUNTRY ILLEGALLY BEFORE HIRING THEM IN ADDITION TO ENFORCEMENT AND REORGANIZATION THE INITIATIVES INCLUDE REDUCING THE ENORMOUS BACKLOG OF APPLICATIONS FOR POLITICAL ASYLUM BY HIRING ADDITIONAL ASYLUM OFFICERS AND CUTTING THE TIME IT TAKES TO PROCESS NATURALIZATION APPLICATIONS BY HIRING ADDITIONAL STAFF IN A MESSAGE SENT TO I. N. S. EMPLOYEES MONDAY MS. MEISSNER SAID THAT THE REORGANIZATION PLAN RESPONDS TO THE WIDELY HELD VIEW WITHIN I. N. S. AND BY OUR STAKEHOLDERS THAT THE AGENCY IS NOT WORKING WELL AS PRESENTLY STRUCTURED THE STATEMENT DIDN'T SPECIFY COST OR PERSONNEL FIGURES MCCAFFREY AND MCCALL THE FORMER SAATCHI AND SAATCHI ADVERTISING AGENCY WHOSE BILLINGS HAD RECENTLY BEEN IN A FREE FALL YESTERDAY CALLED IT QUITS AND FOLDED THE LAST OF ITS ACCOUNTS INTO SAATCHI'S BACKER SPIELVOGEL BATES AGENCY THE MOVE MARKS THE DEATH OF A ONCE HEALTHY MIDSIZE AGENCY WITH BILLINGS OF ALMOST THREE HUNDRED MILLION DOLLARS AS RECENTLY AS NINETEEN NINETY ONE AND A LIST OF BLUE CHIP CLIENTS INCLUDING MERCEDES BENZ TIFFANY BACARDI IMPORTS AND I. T. T. CORPORATION'S HARTFORD INSURANCE BUT MCCAFFREY ENDED ITS LIFE ON MADISON AVENUE WITH BILLINGS OF ONLY ABOUT ONE HUNDRED MILLION DOLLARS BACKER SAID MCCAFFREY'S FAST DEMISE RUNS COUNTER TO THE LATEST TREND ON MADISON AVENUE OTHER SMALL AND MIDSIZE SHOPS ARE BEING HAILED AS THE FUTURE OF THE AD BUSINESS AND ARE SNARING SUCH BIG ACCOUNTS AS MASTERCARD INTERNATIONAL AND INTERNATIONAL BUSINESS MACHINES SMALL AND MIDSIZE SHOPS RECENTLY EVEN SHUT GIANT INTERNATIONAL ADVERTISING NETWORKS OUT OF ONE OF THE BIGGEST ACCOUNT PITCHES IN YEARS GRAND METROPOLITAN'S BURGER KING MANY MIDSIZE AGENCIES PRIDE THEMSELVES ON LIMITING THEIR BUSINESS TO A SMALL NUMBER OF ACCOUNTS BUT MCCAFFREY'S END UNDERSCORES THE RISK OF FOLLOWING THAT STRATEGY MCCAFFREY NEVER COULD REVERSE THE DOWNWARD MOMENTUM AFTER ITS MOST IMPORTANT CLIENT DAIMLER BENZ'S MERCEDES BENZ OF NORTH AMERICA PUT ITS NINETY MILLION DOLLAR ACCOUNT INTO REVIEW IN NINETEEN NINETY ONE THE MOVE SPARKED A STAMPEDE AS BACARDI TIFFANY AND OTHERS LEFT THE AGENCY MCCAFFREY WAS NEVER ABLE TO RECOVER ITS FOOTING PARTLY BECAUSE ITS MANAGEMENT HAD DIVIDED INTO BITTER FACTIONS ADVERTISING INDUSTRY EXECUTIVES SAID ONE GROUP SUPPORTED THEN CHAIRMAN BOB CHERINS WHILE ANOTHER LINED UP BEHIND WILLIAM VIESER THE AGENCY'S PRESIDENT AND HEAD OF THE MERCEDES ACCOUNT AT THE TIME IN THE WAKE OF THE MERCEDES LOSS BOTH EXECUTIVES LOST THEIR POWER MR. CHERINS STEPPED ASIDE TO OVERSEE THE AGENCY'S DIRECT MAIL OPERATIONS AND HAS SINCE LEFT THE AGENCY MICHAEL ROBERTSON THEN A NEWCOMER TO MCCAFFREY WAS NAMED ITS CHIEF EXECUTIVE SOON AFTER MR. VIESER LEFT FOR SCALI MCCABE SLOVES TO MANAGE THE MERCEDES ACCOUNT THE NEWS MARKS THE FINAL CHAPTER OF AN AGENCY FOUNDED IN NINETEEN SIXTY TWO BY TWO VETERANS OF THE VENERABLE OGILVY AND MATHER AGENCY DAVID MCCALL AND JIM MCCAFFREY IN THE NINETEEN SIXTIES THE AGENCY MADE WAVES WITH A CORNY COMMERCIAL FOR HAI KARATE COLOGNE FEATURING CROWDS OF WOMEN ATTACKING A SWEETSMELLING MAN IN A PHONE BOOTH IT ALSO WAS AMONG THE FIRST AGENCIES TO CREATE INTERACTIVE ADS ALBEIT IN A PRIMITIVE FORM FOR CANADIAN CLUB WHISKEY THE AGENCY PUBLISHED TREASURE MAPS IN PRINT ADS SENDING CONSUMERS OFF IN SEARCH OF A CASE OF LIQUOR HIDDEN SOMEWHERE IN THE SOUTH PACIFIC OR IN MIDTOWN MANHATTAN BUT THE AGENCY ALSO WAS KNOWN FOR HIGH BROW ADS ORCHESTRATING ESSO CORPORATION'S SUCCESSFUL NAME AND IMAGE CHANGE TO EXXON ITS MERCEDES ADS WERE CONSIDERED PACE SETTERS IN AUTOMOTIVE ADVERTISING ONE FEATURED A PROFESSIONAL STUNT DRIVER WHO WALKED OUT OF A TRUCK CRASH AND INTO HIS MERCEDES IT WAS RESPONSIBLE FOR THE WELL KNOWN SLOGAN QUOTE ENGINEERED LIKE NO OTHER CAR IN THE WORLD QUOTE MCCAFFREY BECAME PART OF THE SAATCHI EMPIRE IN NINETEEN EIGHTY THREE WHEN THE HOLDING COMPANY BOUGHT IT FOR THIRTY FOUR MILLION DOLLARS AS PART OF SAATCHI THE AGENCY WAS OVERSHADOWED BY SAATCHI'S BIG INTERNATIONAL AGENCIES BUT STILL CONSIDERED A GEM IN THE ADVERTISING BUSINESS BILL TRAGOS CHAIRMAN OF T. B. W. A. ADVERTISING LAUNCHED A SHORT LIVED EFFORT TO BUY THE AGENCY IN NINETEEN NINETY ONE WITH THE AGENCY'S FOUNDERS RETIRED NINE EXECUTIVES AGREED TO BUY MCCAFFREY BACK FROM SAATCHI PAYING TWO MILLION DOLLARS IN CASH AND FIFTEEN MILLION DOLLARS IN THE FORM OF AN INTEREST BEARING NOTE AS PART OF THE CURRENT TRANSACTION NO MONEY CHANGED HANDS SAATCHI SAID IN EFFECT FORGIVING THE MONEY MCCAFFREY STILL OWED IN EXCHANGE SAATCHI'S BACKER SPIELVOGEL SAID IT WILL ABSORB ABOUT FORTY EMPLOYEES AND THE SIX CLIENTS OF MCCAFFREY'S NEW YORK OFFICE INCLUDING THE CARIBBEAN TOURISM ORGANIZATION CIBA GEIGY'S CIBA VISION CONTACT LENSES AND BURROUGHS WELLCOME'S BIG SUDAFED ACCOUNT MCCAFFREY'S INDIANAPOLIS OFFICE WITH FORTY FOUR EMPLOYEES AND FIVE CLIENTS WILL CONTINUE AS A SEPARATE UNIT OF BACKER AS WILL MCCAFFREY'S DIRECT MAIL BUSINESS MR. ROBERTSON FORTY FIVE YEARS OLD WAS NAMED A CREATIVE DIRECTOR AT BACKER'S NEW YORK OFFICE ROBERT HENRY MCCAFFREY'S FORTY SIX YEAR OLD CHIEF OPERATING OFFICER WAS NAMED AN EXECUTIVE VICE PRESIDENT AT BACKER MR. ROBERTSON SAID MCCAFFREY'S UNDOING ULTIMATELY STEMMED FROM THE FACT THAT THE AGENCY WASN'T BIG ENOUGH TO HELP CLIENTS WHO WANTED GLOBAL ADVERTISING FOR EXAMPLE BACARDI LEFT FOR INTERPUBLIC GROUP'S LINTAS WHILE TIFFANY MOVED ITS ACCOUNT TO INTERPUBLIC GROUP'S MCCANN ERICKSON MEDIUM SIZED AGENCIES WILL DO WELL FOR CLIENTS THAT ARE DOMESTIC AND SMALL OR MEDIUM SIZED THEMSELVES SAID MR. ROBERTSON A GLOBAL CLIENT'S NEEDS ARE COMPLETELY DIFFERENT THAT IS WHERE MIDSIZED AGENCIES GET STUCK THE SEARCH IS ON FOR AN AGENCY TO HANDLE THE TEN MILLION DOLLAR PLUS STOLICHNAYA VODKA ACCOUNT NOW THAT DISTRIBUTION RIGHTS TO THE BRAND HAVE MOVED TO GRAND METROPOLITAN'S CARILLON IMPORTERS THE FORMER MARKETER OF ABSOLUT VODKA TWENTY NINE AGENCIES ARE IN LINE TO PITCH THE BUSINESS SAID MICHEL ROUX CARILLON'S CHARISMATIC CHIEF EXECUTIVE OFFICER DECLINING TO IDENTIFY THEM BUT INDUSTRY EXECUTIVES SAID THE LIST INCLUDES SHOPS OF EVERY SIZE AND STRIPE INCLUDING BIG AGENCIES LIKE AYER AND SAATCHI AND SAATCHI'S C. M. E. KHBB AS WELL AS SMALL CREATIVE SHOPS SUCH AS BURKHARDT AND CHRISTY AND GRACE AND ROTHSCHILD AGENCIES ARE THIRSTING NOT SO MUCH FOR THE SIZE OF THE BUSINESS BUT FOR THE VISIBILITY OF AN ACCOUNT HEADED BY CARILLON AND MR. ROUX WHOSE ABSOLUT BRAND HELPED BUILD T. B. W. A. ADVERTISING I HAVE SOMETHING IN THE BACK OF MY MIND MR. ROUX SAID CRYPTICALLY AND WHOEVER WILL COME CLOSEST TO THAT WILL GET THE ACCOUNT GREY ADVERTISING SAID THAT IT HAS RESIGNED FROM MITSUBISHI MOTOR SALES OF AMERICA'S DEALER ASSOCIATION BUSINESS JUST TWO MONTHS AFTER FORMING A DEDICATED QUOTE SATELLITE QUOTE SHOP DUBBED QUOTE G. TWO QUOTE TO SERVICE THE BIG AUTOMOTIVE ACCOUNT BILLINGS COULDN'T BE DETERMINED MITSUBISHI OFFICIALS COULDN'T BE REACHED A GREY SPOKESWOMAN SAID THE AGENCY RESIGNED TO FOCUS ITS EFFORTS ON MITSUBISHI'S NATIONAL BRAND ADVERTISING ACCOUNT MITSUBISHI IS A UNIT OF MITSUBISHI MOTORS CORPORATION OF JAPAN GREY'S G. TWO UNIT BASED IN HUNTINGTON BEACH CALIFORNIA WORKED FOR ABOUT HALF OF THE MITSUBISHI DEALER ASSOCIATIONS INCLUDING THOSE IN DALLAS HOUSTON CHICAGO LOS ANGELES AND SAN FRANCISCO THE OTHER HALF HAD CHOSEN THEIR OWN LOCAL AGENCIES LAST YEAR AFTER MITSUBISHI CHANGED ITS ADVERTISING POLICIES AND ALLOWED THEM TO SELECT THEIR OWN SHOPS GREY SAID IT WOULD CONTINUE TO WORK FOR THE ASSOCIATIONS UNTIL THEY CHOOSE A NEW AGENCY AS PRESIDENT CLINTON PREPARES TO LIFT THE ECONOMIC EMBARGO AGAINST VIETNAM MANY U. S. COMPANIES ARE EAGER TO ENTER THE MARKETS THERE BUT SEVERAL MORE DIPLOMATIC AND BUREAUCRATIC STEPS ARE NEEDED BEFORE SOME U. S. BUSINESSES CAN TAKE FULL ADVANTAGE OF THE OPENING MOBIL CORPORATION IS POISED TO EXERCISE AN OPTION THAT WILL PERMIT IT TO BEGIN OFFSHORE OIL EXPLORATION CATERPILLAR INCORPORATED IS STUDYING AN EXPECTED SEVEN BILLION DOLLARS IN DEVELOPMENT PROJECTS THAT SHOULD YIELD SALES OF AS MUCH AS SEVEN HUNDRED MILLION DOLLARS IN HEAVY EARTHMOVING AND OTHER EQUIPMENT AND MICROSOFT CORPORATION SAYS VIETNAM IS THE NEXT LOGICAL STEP IN ITS PLAN TO MOVE INTO EMERGING MARKETS BUT WHEN THE INITIAL EUPHORIA FADES OBSTACLES MAY LOOM FOR SOME U. S. COMPANIES FOR INSTANCE THE OVERSEAS PRIVATE INVESTMENT CORPORATION THE U. S. GOVERNMENT AGENCY THAT PROVIDES U. S. COMPANIES WITH LOAN GUARANTEES AND POLITICAL RISK INSURANCE FOR LONG TERM INVESTMENTS IN DEVELOPING COUNTRIES WON'T BE OPERATING IN VIETNAM SOON O. P. I. C. CAN'T SIGN AGREEMENTS WITH NATIONS THAT DON'T HAVE DIPLOMATIC RELATIONS WITH THE U. S. WHILE MR. CLINTON IS EXPECTED TO LIFT THE NINETEEN YEAR OLD EMBARGO SOON THE U. S. DOESN'T PLAN TO OPEN DIPLOMATIC TIES WITH HANOI AT THIS TIME AN O. P. I. C. OFFICIAL SAYS THAT HUNDREDS OF U. S. COMPANIES USE ITS PROGRAMS THE U. S. EXPORT IMPORT BANK WHICH MAKES LOANS AND PROVIDES INSURANCE AND GUARANTEES FOR U. S. EXPORTS NEEDS TO GO THROUGH ITS OWN BUREAUCRATIC PROCESS BEFORE IT GETS INVOLVED WITH EXPORTS TO VIETNAM AN OFFICIAL SAYS THERE IS A TWO STEP PROCESS TO DETERMINE HOW MUCH RISK THE BANK WOULD BE EXPOSED TO IN VIETNAM THE OFFICIAL COULDN'T ESTIMATE HOW LONG THE PROCESS MIGHT TAKE THE INITIAL LACK OF SUCH U. S. SUPPORT COULD HAVE A TWOFOLD IMPACT ON SOME POTENTIAL TRADE WITH VIETNAM A GROWING MARKET WITH SEVENTY MILLION CONSUMERS QUOTE I WOULD EXPECT THEM U. S. COMPANIES TO BE QUITE DEPENDENT ON O. P. I. C. FOR LOAN GUARANTEES AND ALSO FOR POLITICAL INSURANCE QUOTE SAID O. P. I. C. PRESIDENT RUTH HARKIN PARTICIPATION BY AGENCIES SUCH AS O. P. I. C. ALSO SENDS A SIGNAL THAT THE FEDERAL GOVERNMENT IS WILLING TO PUT ITS FULL FAITH AND CREDIT BEHIND A DEAL SHE ADDS STILL MANY U. S. COMPANIES ARE BULLISH ON VIETNAM A RECENT SURVEY OF ONE HUNDRED TEN U. S. COMPANIES BY THE PRIVATE U. S. ASEAN COUNCIL FOR BUSINESS AND TECHNOLOGY INCORPORATED FOUND THAT THE COMPANIES EXPECT THE BUSINESS OPPORTUNITIES TO TOTAL ABOUT TWO POINT SEVEN BILLION DOLLARS IN THE FIRST TWO YEARS AFTER THE EMBARGO IS LIFTED AND REACH EIGHT POINT TWO BILLION DOLLARS BY THE FIFTH YEAR WE DO SEE VIETNAM AS HAVING POTENTIAL SOLELY BECAUSE OF THE VOLUME OF CONSUMERS WHO WOULD USE THE PRODUCTS THAT WE MANUFACTURE DAY IN AND DAY OUT SAID A SPOKESMAN FOR PROCTER AND GAMBLE COMPANY THE CINCINNATI BASED HOUSEHOLD PRODUCTS MAKER AND ONCE THE EMBARGO IS LIFTED WESTINGHOUSE ELECTRIC CORPORATION SAID IT IS POISED TO SELL POWER PLANT EQUIPMENT REFRIGERATION UNITS FOR CONTAINERS AND PROCESS CONTROL SYSTEMS TO DISTRIBUTORS NEARLY ALL EUROPEAN AND ASIAN BUSINESS COMPETITORS IGNORE THE U. S. TRADE SANCTIONS AND U. S. COMPANIES ARE EAGER TO CATCH UP BOEING COMPANY FINDS THAT ARCHRIVAL AIRBUS INDUSTRIE OF EUROPE HAS SLIPPED IN AND LEASED TO VIETNAM AIRLINES FIVE A. THREE TWENTY NARROW BODY AIRLINERS BOEING MANAGERS WHO HAVE WANTED TO PLACE SEVEN THIRTY SEVENS THEIR SMALLEST JETLINERS IN VIETNAM FEEL THAT PART OF THE DOOR IS CLOSED BUT THEY PLAN TO MOVE AGGRESSIVELY NONETHELESS AS SOON AS THE SANCTIONS ARE LIFTED A SPOKESMAN SAID THE COMPANY STILL HAS HIGH HOPES FOR PLACING LARGER WIDE BODY JETS SUCH AS THE SEVEN SIXTY SEVEN THERE THEY SAID THAT DEMAND IN VIETNAM SHOULD RANGE FROM SIXTY TO EIGHTY JETS IN THE NEXT DECADE OR SO NUMBERS THAT LOOK PRETTY ATTRACTIVE GIVEN THE DEPRESSED STATE OF THE AIRLINER MARKET CHEVRON CORPORATION ALSO FINDS THAT EUROPEAN COMPETITORS SUCH AS ELF AQUITAINE OF FRANCE AND ROYAL DUTCH SLASH SHELL GROUP OF THE NETHERLANDS HAVE SOAKED UP MUCH OF THE BUSINESS IN VIETNAM WE'RE ALWAYS INTERESTED IN NEW OPPORTUNITIES A SPOKESMAN SAID HOWEVER OUR COMPETITIORS FROM OUTSIDE THE U. S. HAVE BEEN IN VIETMAN FOR SOME TIME PURSUING THE PROSPECTS SO WE'D HAVE TO EVALUATE OUR INTEREST VERY CAREFULLY THE U. S. HAS TAKEN A SERIES OF SMALL STEPS TOWARDS WHAT IS EXPECTED TO BE MR. CLINTON'S LIFTING OF THE TRADE EMBARGO IN DECEMBER NINETEEN NINETY TWO FORMER PRESIDENT BUSH PERMITTED U. S. COMPANIES TO OPEN OFFICIES AND HIRE STAFF BUT NOT SIGN CONTRACTS TO DO BUSINESS AND IN SEPTEMBER MR. CLINTON AUTHORIZED U. S. COMPANIES TO BID ON PROJECTS FINANCED BY INTERNATIONAL FINANCIAL INSTITUTIONS DIGITAL EQUIPMENT CORPORATION HAS BEEN AMONG THE U. S. COMPANIES TAKING ADVANTAGE OF EACH LITTLE OPENING ALONG THE WAY IT SET UP AN OFFICE IN HANOI IN NOVEMBER AND HAS BEEN SIGNING UP PROSPECTIVE CUSTOMERS WITH CONTRACTS THAT BECOME EFFECTIVE AS SOON AS THE EMBARGO LIFTS THE COMPUTER MAKER ALSO NAMED A VIETNAM MARKET DEVELOPMENT MANAGER CURRENTLY BASED IN TOKYO WHO SPENT TWENTY WEEKS IN THE COUNTRY LAST YEAR QUOTE WE HAVE BEEN BUILDING BUSINESS RELATIONSHIPS THAT WILL SPRING INTO LIFE AS SOON AS THE EMBARGO IS LIFTED QUOTE SAID THOMAS EHRGOOD INTERNATIONAL TRADE COUNSEL STILL THE EXPLOSIVE INCREASE OF VIETNAM'S POPULATION AND THE NATION'S RELATIVE LACK OF RESOURCES MAKES SOME EXPERTS BEARISH ABOUT ITS LONG TERM GROWTH PROSPECTS THEY DISMISS ASSERTIONS THAT IT WILL RIVAL NEIGHBORING THAILAND'S METEORIC GROWTH VIETNAM IS STARTING FROM AN INCREDIBLY LOW BASE SAYS TERRY RAMBO DIRECTOR OF THE INDOCHINA INITIATIVE AT THE EAST WEST CENTER A THINK TANK IN HONOLULU EVEN IF IT GROWS TEN PERCENT A YEAR WHICH IS HIGHLY UNLIKELY IT WON'T EVEN BE AT INDONESIA'S LEVEL FOR TEN YEARS THE U. S. CHAMBER OF COMMERCE WAS A STALWART OPPONENT OF BIG GOVERNMENT IN THE NINETEEN EIGHTIES BUT SINCE BILL CLINTON'S ELECTION IT HAS BECOME WELL MORE FLEXIBLE CHAMBER OFFICIALS CROW THAT THIS APPROACH GIVES THEM QUOTE ACCESS QUOTE TO CLINTON ADVISERS BUT THE RESULT HAS MOSTLY BEEN A GREATER WILLINGNESS ON THEIR PART TO SIDE WITH THE WHITE HOUSE YESTERDAY AS THE BUSINESS ROUNDTABLE VOTED SIXTY TO TWENTY TO REJECT THE CLINTON HEALTH PLAN WE RECEIVED A COPY OF THE HEALTH CARE TESTIMONY THE CHAMBER HAD SUBMITTED TO HOUSE WAYS AND MEANS FOR DELIVERY TODAY FOR THOSE WHO REMEMBER THE OLD CHAMBER IT WAS AN EYE OPENER ROBERT PATRICELLI WHO HEADS A MANAGED CARE HEALTH COMPANY AND CHAIRS THE CHAMBER'S HEALTH CARE COMMITTEE NOTED THAT THE CHAMBER WAS IN FULL AGREEMENT WITH THE CLINTON GOAL OF UNIVERSAL COVERAGE THE CHAMBER'S TESTIMONY WENT ON TO ACCEPT THE PROPOSITION THAT EMPLOYERS SHOULD PROVIDE AND HELP PAY FOR INSURANCE ON A PHASED IN BASIS THAT SOUNDED LIKE AN ENDORSEMENT OF AN EMPLOYER MANDATE FOR HEALTH CARE SO WE CALLED THE CHAMBER TO CLARIFY ITS POSITION JUST BEFORE PRESS TIME THE CHAMBER FAXED US A NEW STATEMENT FROM MR. PATRICELLI IN IT HE SAID THE TESTIMONY WE'D SEEN WAS INADVERTENTLY SENT TO THE COMMITTEE BY CHAMBER STAFF AND DOES NOT ACCURATELY REFLECT THE POSITION OF THE CHAMBER ON HEALTH CARE REFORM WE CANNOT SUPPORT ANY OF THE MANDATE PROPOSALS MR. PETROCELLI THEN SAYS THE CLINTON PLAN WOULD IMPOSE SUCH A BURDEN OF REGULATION AND BUREAUCRACY THAT WE BELIEVE IT CANNOT EVEN BE USED AS A STARTING POINT FOR COMMITTEE MARKUP SOUNDS AS IF AFTER SOME CONFUSION THE ROUNDTABLE AND THE CHAMBER HAVE THE SAME POSITION IT WAS IMPOSSIBLE NOT TO LEARN THAT QUOTE I'LL DO ANYTHING QUOTE BEGAN AS A MUSICAL BUT HAD ITS SONGS AXED AND THEN GOT MAJOR RECONSTRUCTIVE SURGERY THIS STRONGLY AFFECTED THE WAY I SAW IT THROUGHOUT THE PICTURE I KEPT WONDERING WHETHER SONGS WOULD HAVE EXPLAINED THE MOVIE'S MANY INCONSISTENCIES OR AT LEAST GIVEN SOME LOGICAL DESTINATION FOR PAUSES THAT NOW LEAD NOWHERE I'LL DO ANYTHING IS A MESS BUT ENTERTAINING AND ONLY PARTLY BECAUSE THE DIRECTOR AND WRITER JAMES BROOKS HAS WRITTEN SOME FUNNY JOKES ABOUT THE MOVIE BUSINESS THE MOVIE'S FASCINATION ALSO LIES IN ITS WEAKNESSES IN ITS UNCERTAIN TONE ITS WAVERING BETWEEN NICENESS AND BITTERNESS ITS BIG AMBITIONS AND SCATTERED ACCOMPLISHMENTS MAKE IT PERPLEXING TO WATCH BUT INTERESTING TO THINK ABOUT MR. BROOKS HAS SPENT MOST OF HIS ADULT LIFE IN TELEVISION AND MOVIES SPECIALIZING IN QUIRKY ENDEARING CHARACTERS HIS HUMOR CAN BE EDGY BUT HIS CHARACTERS ARE ALMOST ALWAYS LIKABLE THOUGH HE'S HAD HIS FAILURES HE DID WRITE THE SCRIPT FOR STARTING OVER SUCCESS HAS COME MORE READILY TO HIM HIS TELEVISION SHOWS INCLUDE THE MARY TYLER MOORE SHOW TAXI AND THE SIMPSONS HE'S MADE TWO MOVIES TERMS OF ENDEARMENT AND BROADCAST NEWS BOTH BIG COMMERCIAL HITS TERMS OF ENDEARMENT WON A FEW OSCARS INCLUDING BEST PICTURE THERE MAY BE CURRENTS OF CYNICISM IN THE WORK BUT THEY ARE ALWAYS SMOOTHED OVER BY A GOOD NATURED BELIEF IN ALMOST EVERY CHARACTER EVEN TED BAXTER THE DUNDERHEAD NEWSMAN ON THE MARY TYLER MOORE SHOW WAS PERIODICALLY ALLOWED TO REVEAL THE GOOD GUY HE REALLY WAS QUOTE BROADCAST NEWS QUOTE HAD PERCEPTIVE THINGS TO SAY ABOUT THE CHANGE OF NEWS INTO ENTERTAINMENT BUT THE MOVIE OFFERED US NO VILLAINS ITS FUN CAME FROM ITS SMART WITTY CHARACTERS AND THE CHARGE THEY GOT OUT OF WORK AND FROM EACH OTHER WITH THIS RECORD OF SUCCESS BEHIND HIM MR. BROOKS COULD EASILY PERSUADE HIMSELF AND FILMLAND'S MONEY MEN THAT HE COULD DO ANYTHING EVEN TRIUMPH WHERE OTHER TALENTED PEOPLE HAD FAILED THE MUSICAL FORM HAD PREVIOUSLY EXERTED A FATAL TEMPTATION OVER FRANCIS FORD COPPOLA TWICE WITH ONE FROM THE HEART AND THE COTTON CLUB STEVEN BOCHCO SUCCUMBED TO THE SAME DEATH WISH ON T. V. COP ROCK NONE OF THESE MAJOR FAILURES NECESSARILY MEANT MR. BROOKS WOULDN'T FIND A WAY TO MAKE THE PUBLIC SING SO HE MADE I'LL DO ANYTHING WITH MUSICAL NUMBERS BY CAROLE KING SINEAD O'CONNOR AND PRINCE AND DANCES BY TWYLA THARP IT WAS UNMADE AT A PREVIEW SCREENING AT WHICH REPORTEDLY ONE HUNDRED PEOPLE WALKED OUT LATER THEY EXPLAINED WHY THEY HATED THE SONGS SO I'LL DO ANYTHING WAS REMADE THIS TIME WITHOUT MUSIC IN THIS FORM THE STORY'S DARKNESS ITS NASTINESS IS SO PRONOUNCED THAT THE HAPPY ENDING MAKES NO SENSE WHAT BEGINS AS A SATIRE OF HOLLYWOOD ENDS AS A CELEBRATION THE CHARACTERIZATIONS USUALLY THE MAINSTAY OF A BROOKS CREATION ARE SURPRISINGLY GLIB THOUGH ALBERT BROOKS IS HILARIOUS AS A MINOR MOVIE MOGUL THE STORY IS ABOUT A TALENTED BUT MYSTERIOUSLY UNEMPLOYABLE ACTOR NICK NOLTE WHO FINDS HIMSELF PUT IN CHARGE OF THE SIX YEAR OLD DAUGHTER HE HASN'T SEEN FOR TWO YEARS THIS OCCURS JUST AS HIS FOREVER LAGGING CAREER MIGHT BE ON THE UPSWING BECAUSE A WOMAN EXECUTIVE AT A PRODUCTION COMPANY LIKES HIM AND HIS ACTING TOO HE HASN'T YET SNAGGED A PART BUT HE HAS FOUND WORK AS CHAUFFEUR TO THE RUDE NEUROTIC ALBERT BROOKS WHO RUNS THE COMPANY HE FINDS HIMSELF SURROUNDED BY MANIPULATIVE PEOPLE WHO THINK IT'S OKAY TO BE RUTHLESS SO LONG AS YOU SAY QUOTE THANKS QUOTE THESE INCLUDE HIS LITTLE GIRL PLAYED WITH SCARY COLDNESS BY WHITTNI WRIGHT AND THE WOMAN MOVIE EXECUTIVE PLAYED BY JOELY RICHARDSON JULIE KAVNER IS ON HAND TO PROVIDE THE HUMANITY SHE'S IN LOVE WITH THE MOVIE MOGUL SO SHE FEELS OBLIGED TO POINT OUT HIS SHORTCOMINGS AS A HUMAN TO HIM THERE ARE MANY CLEVER LINES AND SITUATIONS MR. BROOKS IS VERY OBSERVANT AND HE HAS BEEN OBSERVING THE HOLLYWOOD SCENE FROM THE INSIDE FOR A LONG TIME HE KNOWS ABOUT THE GLIBLY CRUEL YOUNG EXECUTIVES WHO HAVE LITTLE CREATIVITY AND LOTS OF POWER AND THE SHORT BALD MEN WHO SHOW UP AT HOT RESTAURANTS WITH THEIR TALL BLOND WIVES BUT THE STORY'S THEMES AND THE MAIN RELATIONSHIPS NEVER SEEM TO CONNECT MAYBE THEY'VE BEEN SHORT CIRCUITED BY THE DELETION OF THE SONGS MAYBE NOT WE'LL FIND OUT WHEN AND IF THE ORIGINAL VERSION APPEARS ON LASER DISK BLINK IS A THRILLER ABOUT A PRETTY MUSICIAN NAMED EMMA WHO REGAINS HER SIGHT AFTER TWENTY YEARS OF BLINDNESS JUST IN TIME TO WITNESS A MURDERER LEAVING HIS VICTIM SHE BECOMES HIS PREY WHICH LEADS HER NOT ONLY INTO THE USUAL SPASMS OF THRILLER VICTIM BUT ALSO INTO THE ARMS OF THE HANDSOME DETECTIVE PUT ON THE CASE THIS MAY SOUND UNREMARKABLE BUT THE DIRECTOR MICHAEL APTED HAS MADE THE PICTURE BOTH SCARY AND EMOTIONALLY CONVINCING ESPECIALLY IN THE FIRST HALF BEFORE THE PLOT WEARS ITSELF OUT HE HAS BEEN HELPED CONSIDERABLY BY HIS LEADING LADY MADELEINE STOWE ONE OF THE MOST EXCITING YOUNG ACTRESSES TO EMERGE IN THE LAST COUPLE OF YEARS SHE WAS ONE OF THE LEAD PLAYERS IN LAST OF THE MOHICANS AND A MAJOR FORCE IN ROBERT ALTMAN'S SHORT CUTS SHE GIVES THE ILLUSION OF HAVING ALL THE RIGHT THINGS GUTS SEXINESS AND THE INNER TENSION OF A THINKING PERSON SHE IS ALSO NICELY PAIRED WITH AIDAN QUINN WHO MAY OR MAY NOT BE A CONVINCING STREET COP BUT HE'S A GOOD MATCH FOR MS. STOWE IN THE GUTS SEXINESS AND THINKING PERSON DEPARTMENT IT HELPS THAT THEY'VE BEEN GIVEN SMART THINGS TO SAY BY SCREENWRITER DANA STEVENS VIDEO TIP FRANCIS FORD COPPOLA'S MUSICALS DIDN'T GET VERY GOOD REVIEWS AND FAILED AT THE BOX OFFICE BUT THEY ARE SOMETHING TO SEE EVEN SPECTACULAR THEY MAY NOT HAVE THE HEART AND SOUL AND COHERENCE OF THE GREAT MOVIE MUSICALS BUT THEY SURELY ARE BEAUTIFUL TO BEHOLD THE JUSTICE DEPARTMENT CLEARED COMMERCE SECRETARY RONALD BROWN OF ALLEGATIONS THAT HE SOUGHT A BRIBE TO HELP LIBERALIZE U. S. VIETNAM TRADE RELATIONS QUOTE WE HAVE COMPLETED A THOROUGH INVESTIGATION AND HAVE CONCLUDED THAT THE EVIDENCE DOES NOT SUBSTANTIATE THE ALLEGATION THAT MR. BROWN ENTERED INTO ANY SUCH AGREEMENT QUOTE SAID JOSEPH GANGLOFF ACTING CHIEF OF THE DEPARTMENT'S PUBLIC INTEGRITY SECTION IN A LETTER TO MR. BROWN'S LAWYER NO FURTHER INVESTIGATION IS WARRANTED ACCORDINGLY WE ARE CLOSING THE INVESTIGATION FEDERAL INVESTIGATORS CONCLUDED WEEKS AGO THERE WAS NO CASE AGAINST MR. BROWN BUT TOP JUSTICE DEPARTMENT OFFICIALS WANTED TO BE CERTAIN EVERY POSSIBLE LEAD HAD BEEN CHECKED BEFORE ISSUING THE CLEARANCE LETTER SO THAT NO CREDIBLE CHARGE OF A COVERUP COULD BE RAISED REID WEINGARTEN MR. BROWN'S LAWYER SAID THE FEDERAL BUREAU OF INVESTIGATION WENT BY THE BOOK THEY TURNED OVER EVERY ROCK AS WE HAD EXPECTED AND FOUND ABSOLUTELY NOTHING TO CORROBORATE THE ALLEGATIONS MR. BROWN'S OFFICE RELEASED A STATEMENT SAYING THE COMMERCE SECRETARY HAS MAINTAINED FROM THE OUTSET THAT THE ALLEGATIONS WERE BASELESS MR. BROWN IT CONTINUED QUOTE IS PLEASED THAT THE INQUIRY HAS FULLY AND FAIRLY EXONERATED HIM OF ANY WRONGDOING QUOTE ABOUT A YEAR AGO A FORT LAUDERDALE FLORIDA BUSINESSMAN LY THANH BINH ALSO KNOWN AS BINH LY TOLD FEDERAL AGENTS AND REPORTERS THAT MR. BROWN REQUESTED SEVEN HUNDRED THOUSAND DOLLARS PLUS OIL AND GAS ROYALTIES TO ADVANCE VIETNAMESE TRADE INTERESTS MR. BINH WHO ADMITTED THAT HE HAD NEVER SPOKEN TO MR. BROWN SAID HIS INFORMATION CAME FROM NGUYEN VAN HAO A FORMER SOUTH VIETNAMESE OFFICIAL WHO ALLEGEDLY SERVED AS THE MIDDLE MAN BETWEEN THE SECRETARY AND VIETNAMESE OFFICIALS MR. HAO WHO WAS A BUSINESS PARTNER WITH MR. BINH DENIED MR. BINH'S ALLEGATIONS BOTH MR. HAO AND MR. BINH APPEARED BEFORE A FEDERAL GRAND JURY IN MIAMI WHICH INVESTIGATED THE CHARGES MR. HAO'S LAWYER RELEASED A STATEMENT SAYING MR. HAO BELIEVES CLOSING THE CASE WAS JUST FAIR AND A COMPLETE VINDICATION OF HIS ACTIONS CHARACTER AND TRUTHFULNESS MR. BINH SAID WRONGDOING IS TAKING PLACE AND IS BEING SUPPRESSED BY THE ADMINISTRATION THOUGH THERE NEVER WAS ANY SUPPORT FOR MR. BINH'S ALLEGATIONS MR. BROWN'S CREDIBILITY WAS QUESTIONED BY SOME CONSERVATIVE REPUBLICANS AFTER A COMMERCE DEPARTMENT SPOKESMAN ISSUED A STATEMENT LAST AUGUST SAYING MR. BROWN NEVER HAD ANY BUSINESS FINANCIAL OR PROFESSIONAL RELATIONSHIP WITH ANY VIETNAMESE INDIVIDUAL ORGANIZATION OR GROUP OR ANY PERSON CLAIMING TO REPRESENT VIETNAMESE GOVERNMENT OR BUSINESS INTERESTS THE NEXT MONTH MR. WEINGARTEN SAID THE SECRETARY MET MR. HAO THREE TIMES BETWEEN NOVEMBER NINETEEN NINETY TWO AND JANUARY NINETEEN NINETY THREE INCLUDING ONCE IN MR. BROWN'S COMMERCE DEPARTMENT OFFICE PAYMENTS TO MR. BROWN WERE NEVER DISCUSSED MR. WEINGARTEN SAID MR. BROWN'S SUPPORTERS HAVE SPECULATED THAT THE ALLEGATIONS WERE RAISED TO DERAIL ANY CLINTON ADMINISTRATION EFFORT TO NORMALIZE RELATIONS WITH VIETNAM REPRESENTATIVE DANA ROHRABACHER R. CALIFORNIA SAID HE HOPES TO QUESTION MR. BROWN ABOUT THE ALLEGATIONS SOMETIME WHEN THE COMMERCE SECRETARY TESTIFIES BEFORE CONGRESS MR. BROWN SAID DURING A HEARING LAST YEAR THAT HE WOULDN'T ANSWER QUESTIONS ABOUT THE ALLEGATIONS DURING THE INVESTIGATION SEPARATELY JUSTICE DEPARTMENT OFFICIALS HAVE DECIDED THEY WON'T PROSECUTE TWO FORMER STATE DEPARTMENT EMPLOYEES WHO SEARCHED THE PERSONNEL FILES OF ONE HUNDRED SIXTY BUSH ADMINISTRATION APPOINTEES THE TWO FORMER EMPLOYEES WERE CLINTON CAMPAIGN WORKERS WHO WERE FIRED BY SECRETARY OF STATE WARREN CHRISTOPHER FOR GOING THROUGH THE FILES OF G. O. P. APPOINTEES TEMPORARILY RETAINED BY THE CLINTON ADMINISTRATION IN A LETTER TO THE EDITOR YESTERDAY ON BREAST CANCER THERE WAS A SIGNIFICANT TYPOGRAPHICAL ERROR IN ONE SENTENCE IT SHOULD HAVE READ QUOTE IN FACT FIVE OUT OF THE EIGHT TRIALS HAVE SHOWN THAT MAMMOGRAPHY SCREENING CAN REDUCE DEATHS FROM CANCER FOR WOMEN AGES FORTY TO FORTY NINE BY TWENTY TWO PERCENT AS IN THE EDINBURGH TRIAL TO AS MUCH AS FORTY NINE PERCENT IN THE MALMO TRIAL QUOTE CABOT OIL AND GAS CORPORATION HOUSTON SAID IT WILL SPEND EIGHTY ONE MILLION DOLLARS FOR ITS NINETEEN NINETY FOUR CAPITAL AND EXPLORATION BUDGET SIXTY PERCENT MORE THAN THE FIFTY POINT SIX MILLION DOLLARS BUDGETED IN NINETEEN NINETY THREE ACTUAL CAPITAL EXPENDITURES FOR NINETEEN NINETY THREE TOTALED ONE HUNDRED THIRTY SIX POINT THREE MILLION DOLLARS BECAUSE OF ACQUISITIONS THAT THE COMPANY MADE DURING THE YEAR A COMPANY SPOKESMAN SAID ONLY THE ACQUISITIONS FOR WHICH THE COMPANY HAS SIGNED AGREEMENTS IN HAND ARE INCLUDED IN THE INITIAL BUDGET AT THIS TIME NINETEEN NINETY FOUR ACQUISITION FUNDS ARE SET AT TWENTY FOUR POINT TWO MILLION DOLLARS COMPARED WITH NINETEEN NINETY THREE'S ACTUAL EXPENDITURES OF EIGHTY SIX POINT SIX MILLION DOLLARS THE BUDGET ALSO INCLUDES THIRTY NINE POINT SEVEN MILLION DOLLARS FOR DRILLING AND WORKOVERS COMPARED WITH THIRTY SIX POINT THREE MILLION DOLLARS LAST YEAR CABOT SAID IT PLANS TO DRILL ONE HUNDRED FIFTY WELLS IN THE APPALACHIAN REGION AND TWENTY ONE WELLS IN THE ANADARKO REGION OF SOUTH CENTRAL U. S. A. M. R. CORPORATION A SHELF OFFERING OF UP TO FIVE HUNDRED MILLION DOLLARS OF DEBT SECURITIES AND WARRANTS TO PURCHASE DEBT SECURITIES HEALTHSOUTH REHABILITATION CORPORATION AN OFFERING OF UP TO TWO HUNDRED FIFTY MILLION DOLLARS OF SENIOR SUBORDINATED NOTES AND UP TO ONE HUNDRED MILLION DOLLARS OF CONVERTIBLE SUBORDINATED DEBENTURES VIA SMITH BARNEY SHEARSON INCORPORATED MILLICOM INTERNATIONAL CELLULAR S. A. AN OFFERING OF FOUR MILLION SEVEN HUNDRED TWENTY FIVE THOUSAND COMMON SHARES VIA S. G. WARBURG AND COMPANY AND MORGAN STANLEY AND COMPANY COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE MCGRAW HILL INCORPORATED SAID FOURTH QUARTER PROFIT WAS FLAT AS WEAK RESULTS IN ITS EXPANDING TEXTBOOK BUSINESS OFFSET GAINS IN FINANCIAL SERVICES THE PUBLISHING AND INFORMATION COMPANY POSTED FOURTH QUARTER NET INCOME OF FORTY FOUR POINT NINE MILLION DOLLARS OR NINETY ONE CENTS A SHARE UP SLIGHTLY FROM FORTY FOUR POINT SEVEN MILLION DOLLARS OR NINETY ONE CENTS A SHARE A YEAR AGO REVENUE ROSE EIGHTEEN PERCENT TO SIX HUNDRED EIGHTY TWO POINT SIX MILLION DOLLARS FROM FIVE HUNDRED SEVENTY EIGHT POINT SEVEN MILLION DOLLARS THE NINETEEN NINETY TWO RESULTS INCLUDED A TWELVE POINT EIGHT MILLION DOLLAR LOSS FROM MCGRAW HILL'S FIFTY PERCENT SHARE OF A TEXTBOOK AND EDUCATIONAL MATERIALS BUSINESS IN NINETEEN NINETY THREE MCGRAW HILL BOUGHT THE OTHER FIFTY PERCENT AND THE NINETEEN NINETY THREE RESULTS REFLECT THE ENTIRE OPERATION'S PERFORMANCE FOR THE YEAR MCGRAW HILL NET FELL SIXTY PERCENT TO ELEVEN POINT FOUR MILLION DOLLARS OR TWENTY THREE CENTS A SHARE FROM TWENTY EIGHT POINT SIX MILLION DOLLARS OR FIFTY EIGHT CENTS A SHARE RESULTS FOR NINETEEN NINETY THREE INCLUDE A CHARGE OF ONE HUNDRED SIXTY POINT EIGHT MILLION DOLLARS RELATED TO THE TEXTBOOK BUSINESS STAKE THE NINETEEN NINETY TWO RESULTS INCLUDE A CHARGE OF ONE HUNDRED TWENTY FOUR POINT SIX MILLION DOLLARS FROM AN ACCOUNTING CHANGE IN LATE NEW YORK STOCK EXCHANGE TRADING MCGRAW HILL'S STOCK WAS QUOTED AT SIXTY NINE POINT ONE TWO FIVE DOLLARS DOWN TWENTY FIVE CENTS CLINTON IS PROPOSING TO SLASH SPENDING FOR MANY FEDERAL PROGRAMS THE PRESIDENT'S BUDGET TO BE RELEASED MONDAY CALLS FOR DEEP CUTS IN SCORES OF PROGRAMS AND THE ELIMINATION OF MORE THAN ONE HUNDRED OTHERS CLINTON WILL SEEK REDUCTIONS IN NEXT YEAR'S SPENDING FOR PUBLIC HOUSING ARMY CORPS OF ENGINEERS CONSTRUCTION PROJECTS RURAL ELECTRIFICATION LOAN SUBSIDIES SUBSIDIES FOR TRANSIT SYSTEMS AND AID TO HELP POOR PEOPLE PAY THEIR HEATING BILLS OFFICIALS SAID CLINTON ADMINISTRATION OFFICIALS ARE CALLING ATTENTION TO SOME OF THE CUTS TO DEMONSTRATE THAT THE PRESIDENT MADE SOME DIFFICULT CHOICES THE U. S. AND THE U. N. MAY BE FORCED TO DECIDE SOON WHETHER TO IMPOSE SANCTIONS ON NORTH KOREA DEFENSE SECRETARY DESIGNATE PERRY SAID CONCEDING PYONGYANG MAY HAVE A NUCLEAR WEAPON HE SAID HIS BIGGEST CONCERN IS STOPPING NORTH KOREA FROM ANY EFFORT TO DEVELOP WHAT MAY BE QUOTE DOZENS QUOTE OF BOMBS THE WORLD MUST DEFEND BOSNIA AGAINST THE MERCILESS SAVAGERY OF ETHNIC AGGRESSION PRIME MINISTERS BHUTTO OF PAKISTAN AND CILLER OF TURKEY SAID DURING A VISIT TO SARAJEVO THE TWO LEADERS ASKED FOR A FAIR PEACE TO BE REACHED AS SOON AS POSSIBLE AND APPEALED TO THE U. N. CHIEF TO CALL FOR AIR STRIKES AGAINST BOSNIAN SERBS RUSSIAN EXTREMIST ZHIRINOVSKY CLAIMED THAT HE HAD GIVEN THE GO AHEAD FOR THE USE OF A NEW SECRET WEAPON AGAINST MUSLIM MILITARY UNITS IN THE FORMER YUGOSLAVIA THE ULTRANATIONALIST POLITICIAN WHO IS TOURING THE REGION HAS YET TO PRODUCE ANY EVIDENCE OF THE WEAPON'S EXISTENCE THE JUSTICE DEPARTMENT CLEARED COMMERCE SECRETARY BROWN OF ALLEGATIONS THAT HE SOUGHT A BRIBE TO HELP LIBERALIZE U. S. VIETNAM TRADE RELATIONS THOUGH INVESTIGATORS CONCLUDED WEEKS AGO THERE WAS NO CASE AGAINST BROWN OFFICIALS WANTED TO CHECK EVERY POSSIBLE LEAD TO AVOID CHARGES OF A COVERUP VENEZUELA'S NEW PRESIDENT DECLARED THAT THE NATION WOULD HAVE TO MAKE SACRIFICES TO OVERCOME ITS DEPENDENCE ON OIL BUT ADDED THAT A RECENTLY IMPOSED VALUE ADDED TAX WAS AN UNJUST BURDEN THAT HE WOULD ATTEMPT TO REPEAL CALDERA WHO ALSO SERVED AS PRESIDENT FROM NINETEEN SIXTY NINE TO NINETEEN SEVENTY FOUR WAS SWORN IN YESTERDAY THE RECENT MEXICAN UPRISING ISN'T LIKELY TO SPREAD THE STATE DEPARTMENT'S TOP LATIN AMERICAN OFFICIAL ALEXANDER WATSON SAID HIS ASSESSMENT CAME AT A CONGRESSIONAL HEARING ON THE CHIAPAS UPRISING DURING WHICH REPRESENTATIVE TORRICELLI SAID THE ADMINISTRATION HAS A RESPONSIBILITY TO INFORM U. S. FIRMS IF FURTHER INSTABILITY IS EXPECTED ISRAEL'S RABIN SAID IT WOULD TAKE A MIRACLE TO RESOLVE REMAINING DIFFERENCES IN NEXT WEEK'S ISRAELI P. L. O. NEGOTIATIONS THE P. L. O. SAID MORE DELAYS IN IMPLEMENTING PALESTINIAN AUTONOMY WOULD HURT THE PEACE PROCESS THREE JEWISH SETTLERS WERE WOUNDED IN A DRIVE BY SHOOTING IN THE WEST BANK ATTORNEY GENERAL RENO PLANS TO ANNOUNCE STEPS TODAY TO CORRECT IMMIGRATIONRELATED PROBLEMS INCLUDING INCREASED ENFORCEMENT AGAINST EMPLOYERS WHO KNOWINGLY HIRE UNDOCUMENTED WORKERS FEDERAL AGENTS INTEND TO TARGET EMPLOYERS WHO HAVE MADE IT A PRACTICE TO HIRE SUCH WORKERS CHILDREN'S BEHAVIOR ISN'T AFFECTED BY SUGAR OR ARTIFICIAL SWEETENERS ACCORDING TO A NEW MEDICAL STUDY THE STUDY FUNDED IN PART BY THE GOVERNMENT FOUND THAT EVEN WHEN INTAKE LEVELS WERE EXCESSIVE NEITHER SUGAR NOR ASPARTAME INFLUENCES CHILDREN'S BEHAVIOR OR THINKING SINN FEIN LEADER GERRY ADAMS ENDED A U. S. VISIT PLEDGING THAT HE WOULD MAKE CONCRETE DECISIONS SOON ON HIS PARTY'S ROLE IN THE NORTHERN IRELAND PEACE PROCESS ADAMS WHOSE PARTY IS THE POLITICAL WING OF THE IRISH REPUBLICAN ARMY DIDN'T OFFER ANY NEW POLICY INITIATIVES DURING HIS VISIT THE BRITISH GOVERNMENT REPORTEDLY SAID IT WOULD PRESENT NEW PROPOSALS FOR A POLITICAL SETTLEMENT IN NORTHERN IRELAND THE PROPOSALS ARE SAID TO INVOLVE IDEAS FOR REDUCING BRITAIN'S ROLE IN THE PROVINCE AND MECHANISMS FOR ENHANCING CROSS BORDER COOPERATION WITH THE REPUBLIC OF IRELAND A RADICAL ISLAMIC GROUP TOLD FOREIGNERS THEY SHOULD LEAVE EGYPT WARNING OF EXTREMELY FEROCIOUS ACTIONS THE RADICALS REACTED ANGRILY TO A POLICE RAID TUESDAY IN CAIRO IN WHICH SEVEN SUSPECTED MUSLIM EXTREMISTS WERE KILLED SCANA CORPORATION EXPECTS TO REPORT THAT PER SHARE EARNINGS FOR THE FOURTH QUARTER AND YEAR QUOTE WILL CERTAINLY BE IN LINE WITH AND PERHAPS BE A BIT MORE QUOTE THAN ANALYSTS' ESTIMATES SAID LAWRENCE M. GRESSETTE JUNIOR CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SCANA A COLUMBIA S. C. HOLDING COMPANY WITH ELECTRIC AND NATURAL GAS UTILITY OPERATIONS IS ALSO LIKELY TO INCREASE ITS QUARTERLY DIVIDEND OF SIXTY EIGHT POINT FIVE CENTS A SHARE MR. GRESSETTE SAID IN AN INTERVIEW ANALYSTS HAVE BEEN ESTIMATING PER SHARE EARNINGS OF ABOUT SIXTY SEVEN CENTS FOR SCANA'S FOURTH QUARTER AND ABOUT THREE DOLLARS AND SIXTY EIGHT CENTS FOR ALL OF NINETEEN NINETY THREE IN THE NINETEEN NINETY TWO FOURTH QUARTER THE COMPANY EARNED TWENTY SEVEN POINT ONE MILLION DOLLARS OR SIXTY FOUR CENTS A SHARE ON REVENUE OF TWO HUNDRED EIGHTY MILLION DOLLARS FOR ALL OF NINETEEN NINETY TWO SCANA REPORTED EARNINGS OF ONE HUNDRED SEVENTEEN POINT SIX MILLION DOLLARS OR TWO DOLLARS AND EIGHTY FOUR CENTS A SHARE ON REVENUE OF ONE POINT ONE FOUR BILLION DOLLARS THE DOLLAR DRIFTED SLIGHTLY HIGHER YESTERDAY IN SLUGGISH TRADING AS UNCERTAINTY OVER GERMAN INTEREST RATES AND A NEW JAPANESE FISCAL STIMULUS PACKAGE OVERSHADOWED BULLISH U. S. ECONOMIC DATA TRADERS SAID THE MARKET IS DIVIDED ON WHETHER THE BUNDESBANK GERMANY'S CENTRAL BANK WILL CUT INTEREST RATES AT ITS POLICY MAKING COUNCIL MEETING TODAY THEY ALSO NOTED A MARKETWIDE RELUCTANCE TO TAKE NEW POSITIONS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN THREE THREE SIX MARKS UP A BIT FROM ONE POINT SEVEN THREE TWO OH MARKS LATE TUESDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED SEVEN POINT EIGHT EIGHT YEN UP FROM ONE HUNDRED SEVEN POINT SEVEN OH YEN STERLING WAS TRADING AT ONE POINT FOUR NINE FIVE FIVE DOLLARS DOWN FROM ONE POINT FIVE OH ONE OH DOLLARS ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED EIGHT POINT TWO ONE YEN AND AT ONE POINT SEVEN THREE FIVE FIVE MARKS QUOTE THERE IS A LOT OF UNCERTAINTY IN THE MARKET QUOTE SAID JACK GRIFFIN ASSISTANT VICE PRESIDENT OF CORPORATE FOREIGN EXCHANGE AT FUJI BANK IN NEW YORK HE SAID TRADERS WHO HAD BEEN BURNED BY PAST EXPECTATIONS OF BUNDESBANK DECISIONS ARE UNWILLING TO PLACE BETS ON WHICH WAY THE MARKET WILL GO IN ADDITION THE MARKET WAS UNSURE ABOUT THE IMPLICATIONS OF JAPAN'S LONGAWAITED ECONOMIC STIMULUS PROGRAM BASED ON THE INITIAL NEWS REPORTS FROM TOKYO JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA ANNOUNCED A PLAN TO CUT INCOME AND RESIDENCE TAXES BY SIX TRILLION YEN FIFTY FIVE POINT FIVE BILLION DOLLARS IMMEDIATELY AND TO RAISE THE CURRENT THREE PERCENT CONSUMER SALES TAX TO A SEVEN PERCENT PEOPLE'S WELFARE IN APRIL NINETEEN NINETY SEVEN HOWEVER EVEN THE DELAYED CONSUMER TAX INCREASE APPEARS IMPERILED WITH THE SOCIALISTS THREATENING TO QUIT MR. HOSOKAWA'S FRAGILE RULING COALITION IF THE MEASURE IS PASSED BY PARLIAMENT IN ADDITION THE U. S. RESPONSE TO THE STIMULUS PROGRAM HAS BEEN WEAK AT BEST U. S. TREASURY SECRETARY LLOYD BENTSEN ISSUED A TERSE THREE SENTENCE RESPONSE SAYING HE WAS PLEASED THAT JAPAN HAD TAKEN A STEP TOWARD PROVIDING ECONOMIC STIMULUS BUT CAUTIONED THAT MORE DETAILS WERE NEEDED ANALYSTS SAID THE PACKAGE ONCE FULLY UNVEILED IS LIKELY TO BE GIVEN A SOUR GREETING BY THE CLINTON ADMINISTRATION AND COULD RESURRECT U. S. PRESSURE FOR A STRONG YEN AS AN ANTIDOTE FOR JAPAN'S HUGE TRADE SURPLUS THE TAX CUT IS NOT GOING TO BE LARGE ENOUGH TO SATISFY THE U. S. SAID SUNG WON SOHN CHIEF ECONOMIST FOR NORWEST BANK CORPORATION IN MINNEAPOLIS WE WOULD LIKE THE TAX CUT TO HAVE BEEN IN THE SEVEN TO TEN TRILLION YEN RANGE BUT IT'S LESS THAN THAT GIVEN THE QUARRELSOME COALITION THAT HOSOKAWA IS HEADING THERE ARE QUESTIONS WHETHER THIS THING WILL MAKE IT THROUGH PARLIAMENT HE ADDED QUOTE THE MARKET HAS LITTLE CONFIDENCE IN HOSOKAWA'S ABILITY TO REALLY DELIVER QUOTE THERE ALSO APPEARED TO BE LITTLE PROGRESS IN THE CONTINUING U. S. JAPAN TALKS ON LOWERING TRADE BARRIERS THE SO CALLED FRAMEWORK TALKS BETWEEN U. S. TRADE REPRESENTATIVE MICKEY KANTOR AND JAPANESE DEPUTY PRIME MINISTER TSUTOMU HATA WERE DESCRIBED AS SEVERE AND A VISIT TO JAPAN BY HIGH LEVEL U. S. NEGOTIATORS WAS PUT ON HOLD IMPLYING A LACK OF PROGRESS PRIOR TO MR. HOSOKAWA'S VISIT TO WASHINGTON ON FEBRUARY ELEVENTH TRADERS SAID EVENTS IN GERMANY AND JAPAN DIMMED THE MARKET'S REACTION TO MORE BULLISH U. S. ECONOMIC NEWS THE COMMERCE DEPARTMENT SAID SALES OF NEW SINGLE FAMILY HOUSES ROSE A STRONGER THAN EXPECTED ELEVEN POINT FOUR PERCENT IN DECEMBER TO A SEASONALLY ADJUSTED ANNUAL RATE OF EIGHT HUNDRED SIXTY TWO THOUSAND THE HIGHEST SINCE NINETEEN EIGHTY EIGHT SPRINT CORPORATION'S FOURTH QUARTER NET INCOME JUMPED SEVENTY EIGHT PERCENT ON ROBUST REVENUE GROWTH IN LONG DISTANCE AND CELLULAR TELEPHONE SERVICES AND IMPROVED COSTCUTTING WHILE THE COMPANY IS STILL A DISTANT THIRD IN THE LONG DISTANCE MARKET BEHIND AMERICAN TELEPHONE AND TELEGRAPH COMPANY AND M. C. I. COMMUNICATIONS CORPORATION SPRINT'S PROFIT AND REVENUE NUMBERS WERE HIGHER THAN ANALYSTS' PREDICTIONS SPRINT'S LOCAL PHONE OPERATIONS CONTINUED TO OUTPERFORM THE REGIONAL BELL COMPANIES IN REVENUE AND PHONE LINE GROWTH FOURTH QUARTER NET WAS ONE HUNDRED EIGHTY NINE POINT ONE MILLION DOLLARS OR FIFTY FIVE CENTS A SHARE COMPARED WITH ONE HUNDRED SIX POINT FIVE MILLION DOLLARS OR THIRTY ONE CENTS A SHARE A YEAR EARLIER REVENUE GREW TEN PERCENT TO TWO POINT NINE EIGHT BILLION DOLLARS FROM TWO POINT SEVEN BILLION DOLLARS FOR THE YEAR CHARGES TOTALING SIX HUNDRED NINETEEN POINT FOUR MILLION DOLLARS IN NINETEEN NINETY THREE RESULTED IN NET INCOME OF FIFTY FOUR POINT NINE MILLION DOLLARS OR FIFTEEN CENTS A SHARE DOWN EIGHTY NINE PERCENT FROM FIVE HUNDRED TWO POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND FORTY EIGHT CENTS A SHARE IN NINETEEN NINETY TWO THE CHARGES WERE TAKEN FOR POST RETIREMENT BENEFITS EARLY DEBT RETIREMENT AND COSTS ASSOCIATED WITH SPRINT'S MERGER WITH CENTEL CORPORATION REVENUE CLIMBED NINE PERCENT TO ELEVEN POINT THREE SEVEN BILLION DOLLARS FROM TEN POINT FOUR TWO BILLION DOLLARS QUOTE WE'VE GOT ALL OUR CYLINDERS RUNNING NOW QUOTE WILLIAM T. ESREY SPRINT'S CHAIRMAN SAID IN AN INTERVIEW SOME ANALYSTS BELIEVE SPRINT WILL SOON LINE UP INTERNATIONAL SERVICE PARTNERS AS M. C. I. AND A. T. AND T. HAVE DONE BUT MR. ESREY DECLINED TO COMMENT AN INTERNATIONAL DEAL WILL BE SIGNED IN THE NEXT TWO MONTHS CONTENDED BLAKE BATH AN ANALYST AT SANFORD BERNSTEIN AND COMPANY IT'S IMMINENT AND COULD INCLUDE AN EQUITY INFUSION FROM A MAJOR INVESTOR SPRINT IS CAPITAL CONSTRAINED SPRINT'S STOCK CLOSED YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT THIRTY SEVEN POINT ONE TWO FIVE DOLLARS A SHARE UP ONE POINT SIX TWO FIVE DOLLARS OR FOUR POINT SIX PERCENT SPRINT'S LONG DISTANCE BUSINESS POSTED A TWENTY SIX PERCENT RISE IN OPERATING EARNINGS TO ONE HUNDRED THIRTY THREE MILLION DOLLARS IN THE QUARTER AND SIXTY ONE PERCENT GROWTH FOR THE YEAR TO FIVE HUNDRED ONE MILLION DOLLARS LONG DISTANCE REVENUE GREW SEVEN PERCENT TO ONE POINT SIX BILLION DOLLARS FOR THE QUARTER AND ROSE NINE PERCENT TO SIX POINT ONE FOUR BILLION DOLLARS FOR ALL OF NINETEEN NINETY THREE SPRINT BASED IN WESTWOOD KANSAS PEGGED THE GAIN TO GROWTH IN THE CONSUMER AND SMALL BUSINESS MARKETS PARTICULARLY FROM TOLL FREE EIGHT HUNDRED LINES WHERE SPRINT SAID IT PICKED UP TWO PERCENTAGE POINTS SINCE LAST MAY CALLING TRAFFIC VOLUME GREW SEVEN PERCENT FROM A YEAR EARLIER OPERATING PROFIT FROM LOCAL SERVICES GREW TWENTY EIGHT PERCENT TO TWO HUNDRED FIFTY ONE MILLION DOLLARS IN THE QUARTER AND ROSE FOURTEEN PERCENT TO NINE HUNDRED FIFTY FOUR MILLION DOLLARS FOR THE YEAR REVENUE IN THE SEGMENT INCREASED NINE PERCENT TO ONE POINT OH EIGHT BILLION DOLLARS IN THE QUARTER AND ROSE SEVEN PERCENT TO FOUR POINT ONE THREE BILLION DOLLARS FOR THE YEAR SPRINT SAID ITS LOCAL PHONE LINES GREW FOUR POINT EIGHT PERCENT TO MORE THAN SIX POINT ONE MILLION SPRINT'S CELLULAR BUSINESS HAD OPERATING PROFIT OF THREE MILLION DOLLARS IN THE QUARTER COMPARED WITH A YEAR EARLIER LOSS OF TWO MILLION DOLLARS FOURTH QUARTER REVENUE GREW FIFTY PERCENT TO ONE HUNDRED THIRTY SEVEN MILLION DOLLARS FOR THE YEAR CELLULAR OPERATIONS HAD OPERATING PROFIT OF TWENTY FOUR MILLION DOLLARS COMPARED WITH A LOSS OF THREE MILLION DOLLARS IN NINETEEN NINETY TWO AND REVENUE INCREASED FORTY FOUR PERCENT TO FOUR HUNDRED SIXTY FOUR MILLION DOLLARS FROM THREE HUNDRED TWENTY TWO MILLION DOLLARS THE PREVIOUS YEAR SPRINT SAID ITS NUMBER OF CELLULAR SUBSCRIBERS GREW SIXTY SEVEN PERCENT LAST YEAR TO SIX HUNDRED FIFTY TWO THOUSAND WHEN TEXAS LEGISLATORS OVERHAULED THE WORKERS' COMPENSATION SYSTEM IN NINETEEN EIGHTY NINE THE NEW LAW WAS HAILED AS A MODEL FOR OTHER STATES A MODEL IT DEPENDS WHOM YOU ASK FOR MANY OF THE STATE'S LARGEST BUSINESSES THE REFORMS DESIGNED TO LOWER COSTS AND IMPROVE BENEFITS HAVE WORKED WELL BUT ASK SMALL BUSINESSES AND IT'S A DIFFERENT STORY MANY REMAIN OUTSIDE THE SYSTEM ARGUING THAT COSTS HAVEN'T COME DOWN NEARLY AS MUCH AS PROMISED IF THEY HAVE COME DOWN AT ALL AND INJURED WORKERS ARE EVEN MORE UPSET COMPLAINING THAT THEY ARE CAST ADRIFT IN A COMPLEX HEARING PROCESS OUTGUNNED BY COMPANY LAWYERS AND ABANDONED BY PLAINTIFFS' ATTORNEYS WHO WON'T WORK UNDER LIMITS ON LEGAL FEES IN FACT A STATE APPEALS COURT IN AUGUST RULED THE LAW UNCONSTITUTIONALLY DEPRIVES WORKERS OF THEIR RIGHT TO FAIR COMPENSATION FOR WORKPLACE INJURIES AND EVEN IF THE LAW IS UPHELD BY THE STATE SUPREME COURT IT HAS TO SURVIVE A CONCERTED ATTACK BY LEGISLATIVE ENEMIES IN THE NINETEEN NINETY FIVE SESSION QUOTE THE TEXAS REFORMS HAVE BEEN TOUTED AS A MODEL FOR OTHER STATES QUOTE SAYS DEECE ECKSTEIN A MEMBER OF THE STATE BOARD OF INSURANCE BUT IT HASN'T BEEN ESTABLISHED YET THAT THE BENEFITS HAVE BEEN IMPROVED FOR INJURED WORKERS OR THAT COSTS HAVE GONE DOWN FOR MOST BUSINESSES ESPECIALLY SMALL BUSINESSES THAT WASN'T THE WAY IT WAS SUPPOSED TO BE FOUR YEARS AGO WHEN LEGISLATORS APPROVED SWEEPING CHANGES IN THE SEVENTY FIVE YEAR OLD SYSTEM FOR COMPENSATING EMPLOYEES FOR WORKPLACE INJURIES TAKING AIM AT RUNAWAY COSTS THAT THREATENED TO CHASE INSURERS AND BUSINESSES FROM THE STATE LEGISLATORS SET STANDARDS BASED ON AMERICAN MEDICAL ASSOCIATION GUIDELINES FOR DETERMINING DISABILITY TIED ATTORNEYS' FEES TO ACTUAL TIME AND EXPENSES AND PUT LIMITS ON LUMP SUM SETTLEMENTS EMPLOYERS IN TEXAS CAN BUY WORKERS' COMPENSATION INSURANCE FROM AMONG SOME TWO HUNDRED SIXTY PRIVATE INSURERS OR FROM THE TEXAS WORKERS' COMPENSATION INSURANCE FUND A PRIVATE FUND CAPITALIZED BY A STATE BOND ISSUE LARGE EMPLOYERS ALSO CAN SELF INSURE WHILE KEEPING THE LAW'S PROTECTION AGAINST LARGE LEGAL JUDGMENTS BUT TEXAS IS ALSO ONE OF THREE STATES THAT ALLOW EMPLOYERS TO GO BARE NOT PROVIDE ANY WORKERS' COMPENSATION COVERAGE AT ALL MANY COMPANIES INSTEAD PAY FOR EMPLOYEES' INJURIES OUT OF POCKET OR BY PURCHASING STANDARD HEALTH AND DISABILITY POLICIES ALONG WITH AN INDEMNITY POLICY TO GUARD AGAINST CATASTROPHIC CLAIMS ACCORDING TO A STUDY BY TEXAS A AND M. UNIVERSITY FORTY FOUR PERCENT OF BUSINESSES IN THE STATE DON'T PROVIDE WORKERS' COMP INSURANCE THAT MAY CHANGE THE TEXAS WORKERS' COMPENSATION COMMISSION IS CONSIDERING ASKING FOR A LEGISLATIVE REVIEW OF MANDATORY COVERAGE COMMISSIONERS COULD DECIDE TOMORROW TO INCLUDE THE ISSUE IN A LIST OF TOPICS FOR CONSIDERATION BY THE TEXAS SUNSET COMMISSION BY MANY MEASURES THE REFORMS WHICH HAVE THE SUPPORT OF MOST OF THE STATE'S BUSINESS ASSOCIATIONS HELPED DOUBLE DIGIT INCREASES IN PREMIUMS PAID BY BUSINESSES TO INSURANCE COMPANIES HAVE BEEN CURBED AND TOTAL PREMIUMS DROPPED BY TWENTY FIVE PERCENT IN NINETEEN NINETY TWO TO TWO POINT NINE BILLION DOLLARS FROM FOUR BILLION DOLLARS IN A RECENT SURVEY BY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS NEARLY A THIRD OF TEXAS SMALL BUSINESSES THAT ARE IN THE SYSTEM SAW THEIR RATES FALL IN THE PAST YEAR AT THE SAME TIME COMPENSATION FOR SOME WORKERS HAS IMPROVED THE AVERAGE WEEKLY BENEFIT HAS INCREASED TO TWO HUNDRED FIFTY DOLLARS FROM ONE HUNDRED NINETY DOLLARS UNDER THE OLD LAW MAXIMUM BENEFITS HAVE NEARLY DOUBLED TO FOUR HUNDRED SIXTY FOUR DOLLARS A WEEK BUT LOOK A LITTLE CLOSER AND THE GAINS BECOME LESS IMPRESSIVE NEARLY HALF OF THOSE SURVEYED SMALL BUSINESSES FOR INSTANCE SAID THEIR WORKERS' COMP RATES ROSE IN THE PAST YEAR MOREOVER ONE BILLION DOLLARS OF THE ONE POINT ONE BILLION DOLLAR DECLINE IN PREMIUMS STEMS FROM THE FACT THAT UNDER THE NEW LAW INSURANCE COMPANIES CAN OFFER DEDUCTIBLES THE COSTS IN OTHER WORDS HAVE BEEN SHIFTED FROM THE FRONT END TO THE BACK IN ADDITION CRITICS SAY THE USE OF DEDUCTIBLES PRIMARILY HELPS LARGE COMPANIES WHICH CAN BETTER ABSORB BIG LOSSES BIG ENTERPRISES ALSO CAN USE THEIR CLOUT TO NEGOTIATE RATES BELOW THE STATE ESTABLISHED BENCHMARKS LITTLE WONDER THEN THAT EIGHTY EIGHT PERCENT OF BUSINESSES WITH MORE THAN ONE THOUSAND EMPLOYEES HAVE CHOSEN TO REMAIN IN THE SYSTEM COMPARED WITH SIXTY PERCENT OF THOSE WITH TWO TO FIVE EMPLOYEES CERTAINLY TOM WEEKLEY OWNER OF WHALEN FURNITURE INCORPORATED IN MCALLEN HASN'T SEEN HIS RATES FALL HIS RATES JUMPED EIGHT POINT EIGHT PERCENT IN NINETEEN NINETY TWO LEAVING HIS ANNUAL PREMIUMS AT TWICE THEIR NINETEEN NINETY LEVEL EVEN THOUGH HE HASN'T HAD A CLAIM IN FOURTEEN YEARS FOR THEIR PART INSURERS INSIST THEY NEED TO RECOUP LOSSES INCURRED UNDER THE OLD SYSTEM WHILE MANY REMAIN RELUCTANT TO LOWER RATES WHILE THE REFORMS STILL COULD BE REVERSED BY THE COURTS PERHAPS BUT UNTIL RATES COME DOWN SIGNIFICANTLY MANY COMPANIES WILL CONTINUE TO OPT OUT OF THE SYSTEM A CASE IN POINT SOUTHERN FOODS GROUP INCORPORATED A DALLAS MILK PROCESSING COMPANY WITH TWO THOUSAND TWO HUNDRED EMPLOYEES WHICH DECIDED TWO YEARS AGO TO OPERATE WITHOUT WORKERS' COMP INSURANCE THE BIG REASON SAYS PAMELA BUSH THE COMPANY'S OCCUPATIONAL INJURY BENEFITS MANAGER WAS COST SINCE LEAVING THE SYSTEM SHE SAYS PREMIUMS THAT WERE IN THE MILLIONS HAVE BEEN ELIMINATED INSTEAD THE COMPANY PAYS INJURED WORKERS' MEDICAL EXPENSES AND EIGHTY PERCENT OF LOST SALARY FOR AS LONG AS AN INJURED EMPLOYEE IS OFF WORK COMPARED WITH SEVENTY PERCENT TO SEVENTY FIVE PERCENT FOR NO MORE THAN TWO YEARS UNDER WORKERS' COMPENSATION AND IT BUYS AN INDEMNITY POLICY TO COVER CATASTROPHIC LOSSES AND INSTEAD OF SENDING PERMANENTLY DISABLED WORKERS A CHECK TO COMPENSATE FOR THE LOSS OF WAGE EARNING CAPACITY SOUTHERN RETRAINS ITS EMPLOYEES FOR NEW JOBS SOUTHERN'S ANNUAL COSTS NOW LESS THAN ONE MILLION DOLLARS NONSUBSCRIPTION ALSO DOES AWAY WITH THE INSURANCE COMPANY MIDDLEMAN MS. BUSH SAYS ALLOWING HER TO COMMUNICATE DIRECTLY WITH THE INJURED WORKER AND GIVING HER GREATER CONTROL OVER TREATMENT FOR THOSE OF US WHO HAVE REALLY GOOD ALTERNATIVE PROGRAMS GOING BACK WOULD BE DEVASTATING SHE SAYS NONSUBSCRIBERS HOWEVER FACE SUBSTANTIAL RISKS A COMPANY WITHOUT WORKERS' COMP INSURANCE HAS TO BE ONLY PARTLY NEGLIGENT TO BE FULLY LIABLE FOR DAMAGES AND WHILE CLAIMS FOR DAMAGES UNDER THE WORKERS' COMP LAW ARE CAPPED OUTSIDE THE SYSTEM THEY ARE LIMITLESS WITNESS A RECENT CASE IN HOUSTON IN WHICH A TRUCK DRIVER SLIPPED OUT OF HIS TRUCK INJURING HIS BACK AND SUSTAINING SEVENTEEN THOUSAND DOLLARS IN MEDICAL COSTS HIS JURY AWARD THREE POINT FIVE MILLION DOLLARS STILL IF BUSINESSES ARE UNHAPPY WITH THE NEW LAW INJURED WORKERS ARE DEVASTATED FOR MANY INJURED WORKERS NONSUBSCRIPTION CAN MEAN THEY ARE AT THE MERCY OF NOT ALWAYS BENEVOLENT EMPLOYERS SOME FEEL THEY ARE RUSHED BACK TO WORK TOO SOON OR THAT HARD TO VERIFY INJURIES SUCH AS BACK PAIN ARE DOWNPLAYED IT'S A FIEFDOM SAYS RICHARD LEVY TEXAS A. F. L. C. I. O.'S STAFF COUNSEL QUOTE THERE ISN'T A SYSTEM TO INSURE THAT THE WORKER'S RIGHTS ARE PROTECTED QUOTE MOREOVER PLAINTIFFS' LAWYERS WHO IN THE PAST DID VERY WELL PRESSING WORKERS' COMPENSATION CLAIMS HAVE ALL BUT ABANDONED THE FIELD THEY COMPLAIN THAT THE NEW LIMITS ON FEES AND LUMP SUM SETTLEMENTS HAVE MADE COMPENSATION CASES UNAFFORDABLE THIS IS ABOUT THE WORST LAW I'VE EVER SEEN THE TEXAS LEGISLATURE PASS SAYS PHIL HARDBERGER A SAN ANTONIO ATTORNEY WHOSE WORKERS' COMPENSATION CASE LOAD HAS PLUNGED TO TWO FROM FOUR HUNDRED MARY FLORES A CARDIAC NURSE IN SAN ANTONIO DIDN'T HAVE A LAWYER WHEN SHE PRESSED HER CLAIM FOR A CHRONIC FOOT INJURY THROUGH THE TEXAS WORKERS' COMPENSATION COMMISSION'S NEW HEARING PROCESS SHE WON HER CASE IN AN ADMINISTRATIVE HEARING BUT A COMMISSION APPEALS PANEL OVERTURNED THE DECISION SHE THEN SCOURED PAGE AFTER PAGE IN THE TELEPHONE BOOK LOOKING FOR A LAWYER WILLING TO APPEAL HER CASE IN STATE COURT NO TAKERS WHEN YOU HAVE AN ATTORNEY THEY KNOW THE LAW THEY KNOW WHEN TO MOVE FAST AND THEY WILL FIGHT FOR YOU MS. FLORES SAYS IF YOU DON'T HAVE AN ATTORNEY YOU CAN'T DO ANYTHING I THINK THE LAW IS VERY UNFAIR SO FAR STATE COURTS HAVE AGREED MOST RECENTLY THE FOURTH COURT OF APPEALS IN SAN ANTONIO UPHELD A STATE DISTRICT JUDGE AND FOUND THE WORKERS' COMP REFORMS UNCONSTITUTIONAL IN A FOUR TO THREE DECISION WHICH HAS BEEN APPEALED TO THE STATE SUPREME COURT THE COURT FOUND IT WAS ARBITRARY AND IRRATIONAL TO MAKE IT HARD FOR ONLY ONE SIDE TO HIRE A LAWYER THE APPEALS COURT FOUND MUCH IN THE LAW TO FAULT IT CONCLUDED THE A. M. A. GUIDELINES ARE IRRELEVANT IN DETERMINING HOW MUCH A SPECIFIC INJURY IS LIKELY TO IMPAIR JOB PERFORMANCE AND THAT THE LIMITS ON JURY TRIALS DENIES ACCESS TO THE COURTS BACKERS WORRY THAT A LESS THAN RESOUNDING REJECTION OF THE LOWER COURTS' ARGUMENTS COULD CAST A PALL OVER THE LEGISLATURE'S SUNSET REVIEW OF THE WORKERS' COMP COMMISSION AND EVEN WITH A FAVORABLE COURT DECISION INDUSTRY EXPECTS A TOUGH LOBBYING EFFORT BY TRIAL LAWYERS AND ORGANIZED LABOR TO GUT THE LAW CONCEDES DICK BROWN AN INSURANCE INDUSTRY LOBBYIST QUOTE IT'S GOING TO TAKE A COLOSSAL STRUGGLE TO GET THE SYSTEM THROUGH INTACT QUOTE IN HIS STATE OF THE UNION ADDRESS LAST NIGHT PRESIDENT CLINTON TOOK A STEP IN THE RIGHT DIRECTION ON CRIME FOR EXAMPLE THE PUBLIC WANTS THRICE CONVICTED VIOLENT CRIMINALS LOCKED UP FOR GOOD AND LAST NIGHT THE PRESIDENT HEEDED THEIR CALL BUT WHO REALLY SPEAKS FOR THIS ADMINISTRATION ON CRIME THE PRESIDENT OR ATTORNEY GENERAL JANET RENO MS. RENO HAS CHALLENGED THE NEED FOR MANDATORY MINIMUM PRISON SENTENCES PRAISED NINETEEN SIXTIES STYLE CRIMINAL REHABILITATION PROGRAMS THAT DON'T WORK AND MUMBLED ABOUT QUOTE PREVENTION QUOTE EVEN AS VIOLENT CRIMES BY JUVENILES HAVE REACHED HORRIFYING NEW HEIGHTS ON CRIME AND OTHER ISSUES LAST NIGHT THE PRESIDENT SOUNDED LIKE A BORN AGAIN NEW DEMOCRAT BUT WHEN POLITICAL PUSH COMES TO POLICY SHOVE WILL HE CHOOSE THE CENTRIST MAJORITIES OF BOTH PARTIES OVER THE LIBERAL ELITE OF HIS OWN THE RECORD OF THE PAST YEAR IS HARDLY ENCOURAGING BUT THE CRIME ISSUE AFFORDS HIM THE PERFECT OPPORTUNITY TO REHABILITATE HIMSELF AS THE PRESIDENT'S POLLSTERS SURELY KNOW SOLID MAJORITIES OF AMERICANS INCLUDING OVERWHELMING MAJORITIES OF AFRICAN AMERICANS BELIEVE THAT CRIMINALS WHO ASSAULT RAPE ROB BURGLARIZE DEAL DRUGS OR MURDER SHOULD BE ARRESTED PROSECUTED AND PUNISHED IN A SWIFT AND CERTAIN FASHION THEY BELIEVE THAT VIOLENT AND REPEAT CRIMINALS SHOULD BE IMPRISONED THAT A PRISON SENTENCE OF X. YEARS SHOULD MEAN A PRISON SENTENCE OF X. YEARS TRUTH IN SENTENCING THAT CRIMINALS WITH MULTIPLE CONVICTIONS SHOULD RECEIVE LONG PRISON SENTENCES OR LIFE WITHOUT PAROLE TWO OR THREE TIME LOSER LAWS AND THAT CAPITAL PUNISHMENT IS WARRANTED ON BOTH SOCIAL AND MORAL GROUNDS AMONG THE LIBERAL ELITE HOWEVER ONLY GUN CONTROL IS POLITICALLY CORRECT CRIMINAL CONTROL ISN'T FOR A GENERATION NOW THE SORTS OF PEOPLE WHO HAVE BEEN CHEERING MS. RENO'S SPEECHES HAVE BEEN SPEAKING CONDESCENDINGLY OF THE NEED TO EDUCATE THE PUBLIC ABOUT THE VIRTUES OF ALTERNATIVES TO INCARCERATION AND LAMENTING THE OSTENSIBLE FAILURE OF POLICY MAKERS TO RESIST PUBLIC PRESSURES TO LOCK UP STREET PREDATORS BY EVERY MEASURE THE ANTI INCARCERATION ELITE HAS BEEN WINNING ITS TUG OF WAR WITH THE PUBLIC ON CRIME THE SO CALLED GET TOUGH LAWS OF THE NINETEEN EIGHTIES WERE FILLED WITH GET OUT OF JAIL LOOPHOLES PRISON IS NOW THE ALTERNATIVE SENTENCE ABOUT THREE OF EVERY FOUR CONVICTED CRIMINALS MORE THAN THREE MILLION PEOPLE ARE ON THE STREETS WITHOUT MEANINGFUL PROBATION OR PAROLE SUPERVISION THE AVERAGE TIME SERVED IN CONFINEMENT FELL BY SEVERAL MONTHS IN THE NINETEEN EIGHTIES MOST CONVICTED CRIMINALS SPEND ONLY ABOUT ONE THIRD OF THEIR SENTENCES IN PRISON ON AVERAGE CONVICTED RAPISTS SPEND BARELY FIVE YEARS IN PRISON ROBBERS SPEND THREE POINT NINE YEARS ASSAULTERS AND BURGLARS SPEND BARELY TWO YEARS AND DRUG TRAFFICKERS SPEND LESS THAN TWO YEARS ONLY FORTY TWO PERCENT OF REPORTED MURDERS RESULT IN A PRISON SENTENCE MOST CONVICTED MURDERERS SPEND WELL UNDER TEN YEARS BEHIND BARS THE SWISS CHEESE OF MANDATORY SENTENCING LAWS HAS LEFT LITTLE ROOM BEHIND BARS FOR PETTY FIRST TIME OR NONVIOLENT CRIMINALS MORE THAN NINETY THREE PERCENT OF STATE PRISONERS ARE VIOLENT CRIMINALS REPEAT CRIMINALS WITH TWO OR MORE FELONY CONVICTIONS OR VIOLENT REPEAT CRIMINALS MOST OF THE PROPERTY OFFENDERS BEHIND BARS HAVE LONG CRIMINAL HISTORIES AND A PROPENSITY FOR VIOLENCE WITHIN THREE YEARS ABOUT TWO THIRDS OF ALL PROBATIONERS GET INTO SERIOUS TROUBLE WITH THE LAW AGAIN AND TWENTY PERCENT OF RELEASED PROPERTY OFFENDERS ARE REARRESTED FOR A VIOLENT CRIME IT'S TRUE THAT MEASURED IN RELATION TO THE COUNTRY'S TOTAL RESIDENTIAL POPULATION THE RATE OF INCARCERATION IN THE U. S. HAS BEEN GOING UP BUT SO HAS THE RATE OF CEREAL CONSUMPTION BIKE HELMET WEARING AND GASOLINE CONSUMPTION THE RELEVANT MEASURE IS THE RATE OF INCARCERATION RELATIVE TO THE NUMBER OF SERIOUS CRIMES BEING COMMITTED TODAY ONLY SOME SEVEN PERCENT OF BURGLARIES IN THE U. S. EVER RESULT IN AN ARREST AND BARELY ONE POINT TWO PERCENT EVER RESULT IN IMPRISONMENT AND THE PROBABILITY THAT A VIOLENT CRIMINAL OR VIOLENT REPEAT CRIMINAL WILL GO TO PRISON AND SERVE MOST OF HIS TIME BEHIND BARS IN THE U. S. IS TODAY ONLY ABOUT ONE FIFTH WHAT IT WAS IN THE EARLY NINETEEN SIXTIES EVEN THOUGH CRIME HAS LONG BEEN A LEADING PUBLIC CONCERN BARELY A HALF CENT OF EVERY GOVERNMENT DOLLAR FEDERAL STATE AND LOCAL GOES TO KEEPING CONVICTED CRIMINALS BEHIND BARS AND JUST OVER THREE CENTS GOES TO ALL CRIMINAL JUSTICE ACTIVITIES COPS COURTS AND CORRECTIONS INDEED AMERICAN TAXPAYERS SPEND ABOUT SEVEN TIMES MORE ON TRANSPORTATION TWELVE TIMES MORE ON PUBLIC WELFARE PROGRAMS AND TWENTY SEVEN TIMES MORE ON EDUCATION AND LIBRARIES THAN THEY DO ON PRISON AND JAILS IN SHORT THE PEOPLE KNOW WHAT THE RENOS DENY AMERICA HAS CRIME WITHOUT PUNISHMENT AND IT HAS GOT TO STOP IF WE ARE EVEN GOING TO REBUILD PUBLIC CONFIDENCE IN GOVERNMENT LET ALONE OUR ECONOMICALLY CRIME RAVAGED INNER CITIES BUT AS YEARS OF PUBLIC FRUSTRATION WITH CRIME HAVE BEGUN TO BOIL OVER THE PEOPLE ARE BEING SUBJECTED TO A LAST DITCH ANTI INCARCERATION DODGE EVEN THOUGH PUBLIC SPENDING ON PRISONS RELATIVE TO OTHER GOVERNMENT ACTIVITIES IS A PITTANCE IT WOULD COST TOO MUCH WE ARE TOLD TO IMPRISON ALL VIOLENT REPEAT CRIMINALS FOR ALL OR MOST OF THEIR TERMS EVEN IF CRIME PAYS STIFFENING SENTENCES ABOLISHING PAROLE AND ADDING PRISONS WON'T HELP THE BEST AVAILABLE EVIDENCE HOWEVER SUGGESTS THAT PRISON PAYS FOR MOST PRISONERS IN NINETEEN EIGHTY SEVEN A JUSTICE DEPARTMENT STUDY ANALYZED THE SOCIAL COSTS AND BENEFITS OF IMPRISONMENT THAT STUDY GAVE RISE TO A STORM OF CRITICISM MOST OF IT PURELY IDEOLOGICAL SINCE THEN A NUMBER OF INDEPENDENT STUDIES INCLUDING ONE BY HARVARD ECONOMIST ANN PIEHL AND ME PUBLISHED IN THE BROOKINGS REVIEW HAVE BEEN DONE THEY SUGGEST THAT ON AVERAGE IT COSTS SOCIETY ABOUT TWICE AS MUCH TO LET A CRIMINAL ROAM THE STREETS AS IT DOES TO KEEP HIM BEHIND BARS PRISONER SELF REPORT SURVEYS CONDUCTED IN NEW JERSEY WISCONSIN AND OTHER JURISDICTIONS REVEAL THAT THE TYPICAL STREET CRIMINAL COMMITS MORE THAN A DOZEN SERIOUS CRIMES A YEAR WHEN FREE EXCLUDING ALL DRUG CRIMES EACH CRIME IMPOSES COSTS ON ITS VICTIMS AND ON SOCIETY PHYSICAL PAIN AND SUFFERING HOSPITAL BILLS DAYS LOST FROM WORK PSYCHOLOGICAL TRAUMA INCLUDING THE TRAUMA OF EXPERIENCING A MERE PROPERTY CRIME SUCH AS BURGLARY ACCORDING TO SEVERAL STUDIES IT COSTS SOCIETY HUNDREDS OF BILLIONS OF DOLLARS EACH YEAR TO HEAL THE ECONOMIC AND HUMAN WOUNDS WROUGHT BY STREET CRIME PRISON PAYS FOR CHRONIC JUVENILE OFFENDERS TOO FOR EXAMPLE IN NINETEEN EIGHTY THREE THE FEDERAL GOVERNMENT BEGAN A PROGRAM FOR SERIOUS HABITUAL JUVENILE CRIMINALS IN TWENTY CITIES LAW ENFORCEMENT OFFICIALS IDENTIFIED JUVENILES WHO HAD DONE THREE OR MORE MAJOR CRIMES THESE JUVENILES WERE TARGETED FOR ARREST AND PROSECUTION AND THEY RECEIVED THE MAXIMUM PENALTIES AVAILABLE UNDER LAW AS A RESULT OF THIS PROGRAM A NUMBER OF JURISDICTIONS EXPERIENCED SHARP DECREASES IN BOTH VIOLENT AND PROPERTY CRIMES GET TOUGH POLITICS IS GOOD CRIME POLICY ONE CAN ONLY HOPE THAT THE PRESIDENT WHO DELIVERED LAST NIGHT'S SPEECH WILL ORDER HIS ATTORNEY GENERAL TO PUBLISH A LIST OF THE FEDERAL AND STATE PRISONERS WHO SHE BELIEVES OUGHT NEVER TO HAVE BEEN INCARCERATED COMPLETE WITH AN OBJECTIVE ACCOUNT OF THEIR CRIMINAL HISTORIES OR INSIST THAT SHE STOP SPOUTING WACO REASONED CANT ABOUT MANDATORY PRISON TERMS LET HIM FURTHER DEMAND THAT SHE SUPPORT NEW MANDATORY MINIMUM SENTENCES FOR VIOLENT AND REPEAT CRIMINALS OR DETAIL HER FUNDAMENTAL DISAGREEMENTS WITH PRESIDENTIAL POLICY AND RESIGN AND LET HIM BROOK NO NONSENSE FROM DEMOCRATIC CONGRESSMEN WHO DEMAND MORE MONEY FOR GREAT SOCIETY RETREADS AS THE PRICE OF THEIR SUPPORT FOR SERIOUS ANTICRIME MEASURES IF THE PRESIDENT BREAKS FAITH WITH THE PUBLIC ON CRIME HE WILL BE A THREE TIME LOSER MORALLY INTELLECTUALLY AND POLITICALLY LET US HOPE THAT LAST NIGHT'S WORDS MEAN THAT WHEN IT COMES TO THE GOVERNMENT'S ROLE IN FIGHTING CRIME HE'S DECIDED TO GO STRAIGHT MR. DIIULIO IS PROFESSOR OF POLITICS AND PUBLIC AFFAIRS AT PRINCETON UNIVERSITY AND A FELLOW IN GOVERNMENTAL STUDIES AT THE BROOKINGS INSTITUTION NEVER UNDERESTIMATE THE DELIRIUM THAT CAN NOWADAYS SEIZE COLLEGE ADMINISTRATORS FORCED TO ADJUDICATE THE MANY MODERN CORRECTNESSES ESPECIALLY QUOTE HARASSMENT QUOTE OR QUOTE INTIMIDATION QUOTE THE LATEST CAUTIONARY FIASCO COMES FROM PRESTIGIOUS SWARTHMORE COLLEGE IN PENNSYLVANIA SWARTHMORE NOW HAS THE DISTINCTION OF HAVING FORCED THE DEPARTURE OF A MALE STUDENT ON NO BETTER GROUNDS THAN THE ACCUSATION THAT HE CAUSED A YOUNG WOMAN TO FEEL INTIMIDATED IT THEN OFFERED TO PAY HIS TUITION AND FACILITATE HIS ENTRY IF HE WOULD GO TO ANOTHER SCHOOL NO ONE SHOULD DOUBT AND WE DON'T THAT THERE WERE COMPLEXITIES IN THE CASE OF EIGHTEEN YEAR OLD FRESHMAN EWART YEARWOOD IT'S CLEAR TOO THAT A COLLEGE HAS THE RIGHT AND INDEED THE DUTY TO ENFORCE A STANDARD OF CIVILIZED CONDUCT THE PROBLEM IS THAT COLLEGE ADMINISTRATORS' NOTIONS OF THEIR DUTY ARE TODAY SO PROFOUNDLY MUDDLED BY THE POLITICIZED PARANOIA NOW REIGNING ON CAMPUSES THAT IT HAS BECOME IMPOSSIBLE FOR SOME OF THEM TO DISTINGUISH BETWEEN A FACT AND A CHARGE THE SWARTHMORE CASE BEGAN IN SEPTEMBER WHEN FRESHMAN ALEXIS CLINANSMITH COMPLAINED TO A DEAN THAT MR. YEARWOOD HAD HARASSED AND INTIMIDATED HER BY HANGING AROUND LEAVING A SIGN TELLING HER SHE WAS A BEAUTIFUL WOMAN GOING TO HER ROOM UNINVITED BY TOSSING HIS LACROSSE STICK BACK AND FORTH WHILE HE TALKED TO HER WHICH SHE FOUND ALARMING BY THE TIME IT ENDED THIS MONTH EWART YEARWOOD HAD BEEN FORCED OUT AND WAS BEING PORTRAYED BY SCHOOL OFFICIALS AND A PUBLIC RELATIONS TEAM HIRED BY SWARTHMORE AS HAVING DEEP AND DANGEROUS PSYCHOLOGICAL PROBLEMS NOT SURPRISINGLY SOME ALARMED STUDENTS AT COLUMBIA UNIVERSITY WHERE MR. YEARWOOD HOPED TO SPEND THE SPRING SEMESTER GOT THE IDEA THAT SOMEONE ONLY SLIGHTLY LESS DANGEROUS THAN AN AX MURDERER COULD BE HEADED THEIR WAY COLUMBIA HAS REFUSED TO ACCEPT HIM NOTWITHSTANDING SWARTHMORE OFFICIALS' EFFORTS TO GET HIM ADMITTED SURELY NO COLLEGE HEAD AS WELL INTENTIONED AS SWARTHMORE PRESIDENT AL BLOOM HAS BEEN REPRESENTED TO BE WOULD TRY TO FOB OFF A STUDENT TO ANOTHER COLLEGE IF HE ACTUALLY BELIEVED THAT STUDENT GUILTY OF A MENACING PATTERN OF BEHAVIOR SCHOOL OFFICIALS NOW HAVE TAKEN TO ACCUSING MR. YEARWOOD OF PUBLICITY MONGERING AND STARTING A MEDIA BLITZ NOW THIS IS AN ODD CHARGE CONSIDERING THE WAY THE COLLEGE'S PUBLIC RELATIONS TEAM HAS BEEN BURNING UP THE TELEPHONE WIRES CALLING THE PRESS TO SPIN THE PICTURE OF MR. YEARWOOD AS A HIGHLY DISTURBED THREATENING FIGURE IN DEEP NEED OF PSYCHOLOGICAL HELP EWART YEARWOOD IS A MUSCULAR HISPANIC MALE BROUGHT UP IN ONE OF NEW YORK'S ROUGHEST NEIGHBORHOODS WHO MANAGED TO TURN HIMSELF INTO A WELL EDUCATED STUDENT OF UNDENIABLE INTELLECTUAL GIFTS HE IS ALSO A YOUNG MAN NOT GIVEN TO SMILING MUCH WHEN ANGRY HE LOOKS ANGRY ACCORDING TO THE ACCUSING WOMAN AND HER FRIENDS THERE WAS SOMETHING ABOUT EWART THAT FRIGHTENED AND INTIMIDATED THEM THIS VAGUE TESTIMONY IS WHAT THE ADMINISTRATION CITED AS PROOF OF THE CHARGES AGAINST HIM IN THIS AGE AS WE'VE SEEN BEFORE IT IS NO LONGER NECESSARY TO PROVIDE CLEAR PROOF OF AN OFFENSE THE STUDENT NEED ONLY FEEL INTIMIDATED AND HARASSED UPON THE FIRST COMPLAINT THAT HE MADE MS. CLINANSMITH UNCOMFORTABLE MR. YEARWOOD WAS DIRECTED TO FOLLOW A PATTERN OF ACTIVE AVOIDANCE SUBSEQUENTLY THE COMPLAINANT CHARGED MR. YEARWOOD AT A DANCE HAD MUTTERED UNPLEASANT COMMENTS TO HIS FRIENDS THAT MS. CLINANSMITH OVERHEARD AND HAD LOOKED AT HER DURING A FOOTBALL GAME HE WAS FORCED TO LEAVE CAMPUS FOR SIX DAYS TILL A DEANS' TRIBUNAL COULD BE CONVENED THE TRIBUNAL ULTIMATELY FOUND HIM GUILTY OF THE CHARGE THAT HE WAS INSUFFICIENTLY METICULOUS IN FOLLOWING THE ACTIVE AVOIDANCE ORDERS BUT IT FAILED TO FIND HIM GUILTY OF HARASSMENT AND INTIMIDATION HE WAS NONETHELESS TO BE SUSPENDED FOR THE SPRING SEMESTER AND INSTRUCTED DURING THE CURRENT ONE TO STAY FORTY FEET AWAY FROM THE YOUNG WOMAN IT IS NOTEWORTHY THAT THESE SANCTIONS HAD FALLEN ON MR. YEARWOOD EVEN THOUGH HE HAD NOT BEEN FOUND GUILTY OF HARASSMENT AND INTIMIDATION AS HIS PRO BONO LAWYER HARVEY SILVERGLATE EXPLAINS THERE ARE NOW APPARENTLY CRIMES SO TERRIBLE THAT INNOCENCE ITSELF IS NOT AN ADEQUATE DEFENSE SHORTLY AFTER THE FORTY FOOT ORDER DEAN NGINA LYTHCOTT INFORMED MR. YEARWOOD THAT HE WAS CHARGED WITH HAVING COME WITHIN FIFTEEN FEET OF MS. CLINANSMITH IN THE DINING HALL AND ANOTHER TIME AS CLOSE AS FOUR FEET MATTERS WENT DOWNHILL FROM THERE THE YOUNG WOMAN WHO PRESSED FOR MR. YEARWOOD'S REMOVAL DESERVES SYMPATHY IF ONLY FOR THE REASON THAT SHE LIVES IN TIMES SO GENUINELY FRIGHTENING IT IS A TIME SO SHAPED BY A PREOCCUPATION WITH PERSONAL QUOTE RIGHTS QUOTE AND THE TERRORS OF MALE SEXUAL AGGRESSION THAT A CASE OF CRUDE AMOROUS PERSISTENCE CAN BE CONVERTED INTO QUOTE CRIMINAL STALKING QUOTE ONCE UPON A TIME LERNER AND LOEWE WROTE A MUSICAL CALLED MY FAIR LADY IN WHICH A REJECTED SUITOR CALLED FREDDY HUNG ABOUT AND SANG ON THE STREET WHERE YOU LIVE IT WAS ALL TERRIBLY ROMANTIC TODAY A YOUNG MAN HANGING AROUND IS LIKELY TO BE CHARGED WITH INTIMIDATION AND TERRORIZATION ONCE UPON A TIME TOO COLLEGE ADMINISTRATORS WHO WANTED TO IMPROVE BEHAVIOR WOULD TELL A STUDENT TO SHAPE UP OR GET OUT TODAY AT THE FIRST COMPLAINT THE MACHINERY OF TRIBUNALS AND WITNESSES BEGIN ROLLING ALONG WITH ELABORATE ARRANGEMENTS ABOUT THE NUMBER OF FEET THE ACCUSED IS REQUIRED TO PUT BETWEEN HIMSELF AND THE ACCUSER SOME DAYS THE RETURN OF REASON SEEMS A LONG WAY OFF THE TEXAS PUBLIC UTILITY COMMISSION SPOKE LAST WEEK AND CONSUMERS ARE SCRAMBLING TO FIND THE MEANING THE COMMISSION'S APPROVAL OF A FOUR HUNDRED THIRTY NINE MILLION DOLLAR RATE INCREASE FOR T. U. ELECTRIC WAS THE FIRST MAJOR RATE CASE DECISION BY THE CURRENT COMMISSION WHICH NOW CONSISTS ENTIRELY OF GOVERNOR ANN RICHARDS'S APPOINTEES ALTHOUGH LARGE THE INCREASE WAS HALF OF WHAT T. U. ELECTRIC HAD REQUESTED THE LAST TIME THE UTILITY CAME TO THE RATE TABLE IN NINETEEN NINETY ONE IT RECEIVED ALL OF THE FOUR HUNDRED FORTY TWO MILLION DOLLAR INCREASE IT SOUGHT BUT HOW DOES THE COMMISSION DECIDE AND WHO CAN ASK IT TO REVIEW RATES HERE ARE ANSWERS TO SOME OFTEN ASKED QUESTIONS ABOUT ELECTRIC RATES IN TEXAS HOW DO TEXAS' RATES COMPARE WITH RATES IN THE REST OF THE COUNTRY IT DEPENDS ON WHAT YOU COMPARE TEXAS' AVERAGE DECEMBER RATE IS LOWER THAN THE NATIONAL AVERAGE LARGELY BECAUSE OF LOW RATES CHARGED BY THE STATE'S RURAL COOPERATIVES AND BECAUSE THE NATIONAL RATE IS SKEWED BY HIGH COSTS IN BOSTON AND NEW YORK BUT CUSTOMERS OF MOST OF THE LARGE INVESTOR OWNED UTILITIES IN TEXAS PAY HIGHER RATES THAN NEARLY EVERY OTHER MAJOR CITY IN THE COUNTRY THAT GAP IS EVEN MORE PRONOUNCED WHEN YOU LOOK AT AVERAGE MONTHLY BILLS PARTICULARLY IN THE SUMMER WHEN USAGE IS HIGHEST THE AVERAGE BILL IN AUGUST IN TEXAS IS ONE HUNDRED ONE DOLLARS COMPARED WITH A NATIONAL AVERAGE OF SEVENTY FIVE DOLLARS AT INVESTOR OWNED UTILITIES WHO PAYS THE HIGHEST AND LOWEST RATES IN TEXAS BY NEARLY EVERY MEASURE EL PASO ELECTRIC COMPANY HAS THE HIGHEST ELECTRIC RATES IN THE STATE BUT THE AREA'S MILD CLIMATE KEEPS THE AVERAGE RESIDENTIAL ELECTRIC BILL LOW ONLY SIXTY DOLLARS DURING AUGUST COMPARED WITH ONE HUNDRED FIFTY SIX DOLLARS IN THE MUGGY GULF REGION SERVED BY HOUSTON LIGHTING AND POWER MEANWHILE THE TWENTY SIX THOUSAND EAST TEXAS RESIDENTS WHO BUY POWER FROM THE UPSHUR RURAL ELECTRIC COOPERATIVE CAN BOAST THE LOWEST RESIDENTIAL RATES COMPANIES SERVED BY SOUTHWESTERN ELECTRIC POWER COMPANY IN LONGVIEW HAVE THE LOWEST COMMERCIAL RATES AND BUSINESSES IN EAST TEXAS SERVED BY SOUTHWESTERN ELECTRIC SERVICE COMPANY A UNIT OF TEXAS UTILITIES COMPANY DALLAS HAVE THE LOWEST INDUSTRIAL RATES WHY THE DIFFERENCE EL PASO ELECTRIC WHICH SINCE JANUARY NINETEEN NINETY TWO HAS OPERATED UNDER CHAPTER THIRTEEN BANKRUPTCY PROTECTION HAS SUFFERED FROM AN EXPENSIVE INVESTMENT IN THE PALO VERDE NUCLEAR POWER PLANT IN ARIZONA AND A RELATIVELY SMALL CUSTOMER BASE RESULTING IN HIGH PER CUSTOMER CHARGES EARLIER COMMISSIONS ALLOWED THE UTILITY TO INCLUDE LARGE PORTIONS OF THE PALO VERDE INVESTMENT IN ITS RATE BASE AS WELL AS APPROVING RATES OF RETURN EXCEEDING THIRTEEN PERCENT MEANWHILE AMARILLO BASED SOUTHWESTERN PUBLIC SERVICE COMPANY WHOSE RATES ARE AMONG THE LOWEST IN THE STATE IS CONSIDERED A TIGHT FISTED UTILITY THAT OPERATES FUEL EFFICIENT COAL BURNING PLANTS WITH THE LOWEST OPERATING COSTS IN THE COUNTRY HOW DOES THE P. U. C. DECIDE WHAT RATES A UTILITY CAN CHARGE REGULATED UTILITIES CAN CHARGE RATES THAT ALLOW IT TO RECOVER ITS QUOTE PRUDENT QUOTE EXPENSES AND EARN A REASONABLE PROFIT BASED ON THE VALUE OF ITS ASSETS THE COMMISSION DETERMINES THOSE EXPENSES AND PROFIT NUMBERS AFTER HEARINGS CONSIDER THE T. U. ELECTRIC CASE THE COMPANY A UNIT OF TEXAS UTILITIES ASKED THE COMMISSION A YEAR AGO FOR PERMISSION TO RAISE RATES TO BRING IN AN ADDITIONAL SEVEN HUNDRED SIXTY MILLION DOLLARS IN ANNUAL REVENUE A FIFTEEN POINT THREE PERCENT INCREASE THE COMPANY NEEDED THE RATE INCREASE LARGELY TO BEGIN RECOVERING THE COSTS OF ITS FOUR POINT THREE BILLION DOLLAR INVESTMENT IN UNIT TWO OF ITS COMANCHE PEAK NUCLEAR PLANT BUT EARLY IN THE PROCESS THE COMPANY AGREED TO EXCLUDE THREE HUNDRED THIRTY THREE MILLION DOLLARS IN COMANCHE PEAK CONSTRUCTION COSTS COMMISSIONERS ALSO RULED THAT THE COMPANY COULDN'T INCLUDE ONE POINT SEVEN MILLION DOLLARS IN CHARITABLE CONTRIBUTIONS AND THIRTY THREE MILLION DOLLARS IN SO CALLED HYPOTHETICAL TAXES IN ITS EXPENSES AND IT REDUCED THE COMPANY'S REQUEST FOR A TWELVE POINT FIVE PERCENT RATE OF RETURN ON EQUITY TO ELEVEN POINT THREE FIVE PERCENT WHAT ARE HYPOTHETICAL TAXES UNTIL NINETEEN NINETY TWO THE COMMISSION ALLOWED A UTILITY TO ESTIMATE ITS FEDERAL INCOME TAXES BASED ON ITS STAND ALONE REVENUE EVEN IF THE UTILITY WAS PART OF A HOLDING COMPANY WHOSE CONSOLIDATED TAX BILL WAS REDUCED BY DEDUCTIONS OR LOSSES INCURRED BY UNREGULATED SUBSIDIARIES THESE HYPOTHETICAL TAXES WERE CHARGED TO CONSUMERS EVEN THOUGH THEY WERE NEVER ACTUALLY PAID UTILITY EXECUTIVES INSIST SUCH CHARGES ARE LEGITIMATE ANY TAX SAVINGS AT THE PARENT COMPANY SHOULD FLOW TO THE BENEFIT OF ITS SHAREHOLDERS THEY SAY NOT TO RATEPAYERS THE COMMISSION DISAGREED ARGUING THAT UTILITIES CAN ONLY CHARGE THEIR CUSTOMERS FOR THE ACTUAL TAXES PAID THE ISSUE IS EXPECTED TO COME UP AGAIN DURING THE NEXT LEGISLATIVE SESSION WHO CAN ASK THE P. U. C. TO REVIEW RATES TYPICALLY REQUESTS WILL COME EITHER FROM THE UTILITY WHICH WANTS TO RAISE THEM OR FROM CITIES CONSUMER GROUPS OR INDIVIDUAL CUSTOMERS WHO WANT TO LOWER THEM IN MAY NINETEEN NINETY TWO A LAID OFF EMPLOYEE OF HOUSTON LIGHTING AND POWER FILED A COMPLAINT WITH THE COMMISSION ALLEGING THAT THE HOUSTON INDUSTRIES UNIT EARNS TOO MUCH HE ALSO SOUGHT TO REMOVE THE TROUBLED SOUTH TEXAS NUCLEAR PROJECT FROM H. L. AND P'S RATE BASE ARGUING IT WAS AN IMPRUDENT INVESTMENT THE CASE IS PENDING BEFORE AN ADMINISTRATIVE LAW JUDGE WHO WILL RECOMMEND WHETHER THE COMMISSION SHOULD OPEN A FULL BLOWN RATE REVIEW OIL PRICES ARE WAY WAY DOWN SHOULDN'T MY RATES BE FALLING UTILITIES DON'T BURN MUCH OIL NATURAL GAS IS GENERALLY CHEAPER CLEANER AND MORE READILY AVAILABLE BUT EVEN IF THEY DID IT WOULD HAVE ONLY A MODEST EFFECT ON RATES IN TEXAS CHANGES IN FUEL COSTS AREN'T PASSED ON TO CUSTOMERS AUTOMATICALLY A SAFEGUARD DESIGNED TO PROTECT CONSUMERS FROM SUDDEN SPIKES IN ENERGY COSTS AND BECAUSE UTILITIES PURCHASE FUEL ON LONG TERM CONTRACTS LOWER ENERGY COSTS MIGHT NOT SHOW UP IN LOWER UTILITY BILLS AT ALL IF TODAY'S LOWER OIL PRICES PROVE TO BE A TEMPORARY DIP DO MY BILLS PAY FOR ALL THOSE T. V. COMMERCIALS FROM UTILITIES CONSUMERS PAY FOR SOME BUT NOT ALL UTILITY ADVERTISING ADS DESIGNED TO BOOST A COMPANY'S IMAGE OR ENCOURAGE PEOPLE TO USE MORE ELECTRICITY ARE SPECIFICALLY EXCLUDED THE REST IS AT THE DISCRETION OF THE COMMISSION MICHAEL LEDEEN'S JANUARY TWENTY FOURTH EDITORIAL PAGE ARTICLE QUOTE DAMNING NEWS IN WALSH REPORT QUOTE ALLEGES ERRONEOUSLY THAT I QUOTE ADMITTED FALSE TESTIMONY QUOTE IN THE IRAN CONTRA AFFAIR AND FURTHERMORE THAT QUOTE IT APPEARS THAT MR. SHULTZ SYSTEMATICALLY MISLED MR. WALSH AND CONGRESS ABOUT THE EXTENT OF HIS KNOWLEDGE THROUGHOUT IRAN CONTRA QUOTE IN FACT I HAVE NEVER ADMITTED FALSE TESTIMONY AND MR. WALSH HAS MADE NO SUCH CHARGE NOR DID I SYSTEMATICALLY MISLEAD MR. WALSH AND CONGRESS I HAVE TESTIFIED TO THE FULLEST EXTENT OF MY KNOWLEDGE THROUGHOUT THE IRAN CONTRA PROCEEDINGS IN REVIEWING MORE THAN TWENTY TWO THOUSAND PAGES OF NOTES TAKEN BY MY EXECUTIVE ASSISTANT CHARLES HILL THE INDEPENDENT COUNSEL'S OFFICE FOUND REFERENCES NOT ONLY CONFIRMING THE EVENTS TO WHICH I TESTIFIED BUT ALSO FOUND REFERENCES TO AN EPISODE OF A PLANNED ARMS SALE IN LATE MAY NINETEEN EIGHTY SIX AND TO A SIMILAR BRIEF AND ABORTED EFFORT OF WHICH I WAS INFORMED ON FEBRUARY ELEVENTH NINETEEN EIGHTY SIX I DID NOT REFER TO THESE EPISODES IN MY TESTIMONY BECAUSE I HAD NOT REMEMBERED THEM AND MY EXECUTIVE ASSISTANT HAD NOT FOUND REFERENCES TO THEM IN HIS REVIEW OF HIS NOTES BEFORE I TESTIFIED THE INDEPENDENT COUNSEL ALSO FOUND A NOTE IN THE FILES OF DEFENSE SECRETARY CASPAR WEINBERGER REFERRING TO A CONVERSATION HE HAD WITH ME ON MAY THIRTEENTH NINETEEN EIGHTY SIX IN WHICH MR. WEINBERGER TOLD ABOUT ANOTHER ARMS SALE TO IRAN I DID NOT RECALL THIS CONVERSATION AND HAD NEVER SEEN MR. WEINBERGER'S NOTE SO ITS CONTENTS WERE NOT REFLECTED IN MY TESTIMONY EITHER AS THE REPORT AND MY RESPONSE TO THE REPORT MAKE CLEAR I INFORMED THE INDEPENDENT COUNSEL IN A FEBRUARY NINETEEN NINETY TWO INTERVIEW THAT IF I HAD BEEN GIVEN THOSE NOTES BEFORE MY NINETEEN EIGHTY SIX TO EIGHTY SEVEN TESTIMONY I WOULD HAVE INCLUDED REFERENCES TO THE INFORMATION THEY DESCRIBED IN MY STATEMENT TO THE COMMITTEE THESE INCIDENTS AND THE ADDITIONAL INFORMATION ABOUT THEM DO NOT CHANGE THE PICTURE I PRESENTED OF MY CONSISTENT OPPOSITION TO THE ARMS FOR HOSTAGES EFFORTS MY CONSISTENT PUSH TO GET THE FACTS OUT TO THE PUBLIC FULLY AND AS SOON AS POSSIBLE AND THE FRAGMENTARY NATURE OF MY KNOWLEDGE OF WHAT THOSE ON THE NATIONAL SECURITY COUNCIL STAFF AND IN THE C. I. A. WERE DOING ON THE ARMS FOR HOSTAGES EFFORT THE REPORT ITSELF STATES THAT MY TESTIMONY WAS FULLY CONSISTENT WITH ALL THE NOTES ONE HAVE BEEN SHOWN IN THE PROCESS OF PREPARING FOR MY TESTIMONY THE REPORT ACKNOWLEDGES THAT THE CONTEMPORANEOUS NOTES TAKEN BY CHARLES HILL IN NOVEMBER AND DECEMBER NINETEEN EIGHTY SIX AND IN NINETEEN EIGHTY SEVEN INCLUDED EXTENSIVE NOTES ON PRECISELY HOW I AND MY STAFF PREPARED FOR MY NINETEEN EIGHTY SIX TO EIGHTY SEVEN TESTIMONY AND THAT NONE OF THE CONTEMPORANEOUS NOTES CREATED IN NOVEMBER AND DECEMBER NINETEEN EIGHTY SIX SUGGEST THAT SHULTZ IN FACT REMEMBERED MORE OR DIFFERENT INFORMATION THAN THAT TO WHICH HE TESTIFIED PAGE THREE HUNDRED SEVENTY TWO FURTHERMORE THE INDEPENDENT COUNSEL'S REPORT CONCEDES MY ADMIRABLE ROLE IN NOVEMBER NINETEEN EIGHTY SIX BOTH IN STOPPING THE INITIATIVE AND IN URGING DISCLOSURE OF THE EVENTS OF NINETEEN EIGHTY FIVE AND NINETEEN EIGHTY SIX PAGE THREE HUNDRED FORTY FIVE THERE ARE IMPORTANT LESSONS TO BE LEARNED FROM THE IRAN CONTRA AFFAIR AND I HAVE TRIED TO SET THEM FORTH IN FOUR CHAPTERS OF MY MEMOIR TURMOIL AND TRIUMPH WHICH DESCRIBES FROM MY ANGLE OF VIEW HOW THIS COMPLICATED DRAMA UNFOLDED AND HOW DIFFICULT IT WAS TO STOP THE ARMS FOR HOSTAGES EFFORT EVEN AFTER THE EXPLOSIVE REVELATION OF ARMS TO IRAN AND THE DIVERSION OF FUNDS TO THE CONTRAS MR. SHULTZ A DISTINGUISHED FELLOW AT THE HOOVER INSTITUTION WAS SECRETARY OF STATE UNDER PRESIDENT REAGAN THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR FELL TO ONE HUNDRED TEN POINT SEVEN TWO IN THE LATEST WEEK FROM A REVISED ONE HUNDRED TEN POINT NINE SIX THE PRIOR WEEK CONTRIBUTING TO THE DECLINE INITIAL UNEMPLOYMENT CLAIMS ROSE SHARPLY AND TEXAS REFINERY OUTPUT FELL BUT THE YEAR OVER YEAR CHANGE IN THE INDEX ROSE TO TWO POINT TWO FIVE PERCENT FROM TWO POINT TWO FOUR PERCENT REVERSING EIGHT STRAIGHT WEEKS OF FALLING FIGURES MOST OF THE WORKING PRESS HOPING AS THEY HAD FOR SEVEN YEARS THAT IRAN CONTRA SPECIAL PROSECUTOR LAWRENCE WALSH WOULD SOMEHOW PULL A FLUFFY CRIME OUT OF HIS EMPTY HAT TREATED MR. WALSH'S FINAL REPORT AS OLD NEWS AND IN ONE SENSE THEY WERE RIGHT AFTER MR. WALSH'S ELECTION EVE INDICTMENT OF CASPAR WEINBERGER THE STATUTE OF LIMITATIONS HAVING QUITE CLEARLY EXPIRED AFTER HIS TENDENTIOUS QUOTE INTERIM REPORTS QUOTE THAT SLANDERED HIS TARGETS WITHOUT ENABLING THEM TO REPLY AFTER HIS UTTERLY UNETHICAL PUBLIC STATEMENTS ABOUT THE QUOTE GUILT QUOTE OF ONE OR ANOTHER TARGET THE SPECIAL PROSECUTOR EXPIRED WITH A LONG SIGH THERE WAS NO EVIDENCE TO JUSTIFY ANY FURTHER PROSECUTIONS HE EVEN HAD SOME KIND WORDS FOR RONALD REAGAN HE MEANT WELL HE THOUGHT HE WAS ADVANCING THE NATIONAL INTEREST YET THERE IS NEWS IN THE FINAL REPORT FOR STARTERS THERE IS A DRASTICALLY REVISED PORTRAIT OF SECRETARY OF STATE GEORGE SHULTZ PREVIOUSLY ENTHRONED AS THE LONE TELLER OF TRUTH OF THE REAGAN CABINET IT APPEARS THAT MR. SHULTZ SYSTEMATICALLY MISLED MR. WALSH AND CONGRESS ABOUT THE EXTENT OF HIS KNOWLEDGE THROUGHOUT IRAN CONTRA THE FINAL REPORT CONTAINS DOZENS OF EXCERPTS FROM NOTES AND MEMORANDUMS PREPARED BY MR. SHULTZ'S TWO TOP ASSISTANTS THAT SHOW THAT MANY STATE DEPARTMENT OFFICIALS WERE VERY WELL INFORMED INDEED ABOUT MATTERS THAT MR. SHULTZ HAD SWORN THE DEPARTMENT IN GENERAL AND HE IN PARTICULAR HAD BEEN KEPT IN THE DARK ABOUT SHULTZ ULTIMATELY ACKNOWLEDGED THAT HIS TESTIMONY HAD BEEN INCORRECT THE REPORT SAYS BUT MR. WALSH DECIDED NOT TO PROSECUTE THE FORMER SECRETARY OF STATE BECAUSE HE COULDN'T PROVE BEYOND A REASONABLE DOUBT THAT HIS TESTIMONY WAS WILLFULLY FALSE YET HE DID PROSECUTE MR. WEINBERGER FOR ALLEGEDLY DOING PRECISELY WHAT MR. SHULTZ HAD DONE AND THE EVIDENCE PRESENTED AGAINST MR. SHULTZ IS IF ANYTHING MORE COPIOUS THAN THAT AGAINST MR. WEINBERGER THE CHOICE WAS PROBABLY DICTATED BY PERSONAL RAPPORT AND POLITICAL CALCULATION MR. SHULTZ WAS THE DARLING OF CAPITOL HILL WHILE MR. WEINBERGER WAS A PRICKLIER PERSONALITY MR. SHULTZ WAS COOPERATIVE WITH MR. WALSH AND ADMITTED FALSE TESTIMONY WHILE MR. WEINBERGER DEFIANTLY HELD HIS GROUND A SECOND BIT OF NEWS IS A RETURN TO ONE OF MR. WALSH'S ORIGINAL THEORIES ABOUT IRAN CONTRA THAT AMONG MR. SHULTZ MR. WEINBERGER DONALD REGAN JOHN POINDEXTER WILLIAM CASEY ED MEESE AND ROBERT MCFARLANE THERE WAS A GREAT CONSPIRACY TO PREVENT THE SPECIAL PROSECUTOR AND THE AMERICAN PEOPLE FROM LEARNING WHAT HAD REALLY HAPPENED IT IS A HILARIOUS NOTION EVIDENTLY WRITTEN BY MR. WALSH'S LEFT HAND FOR THE RIGHT HAND HAS GIVEN US COPIOUS EVIDENCE THAT THE WOULD BE CONSPIRATORSAT THE VERY MOMENT MR. WALSH SAYS THEY WERE PLOTTING WERE ACTUALLY MAKING FEVERISH EFFORTS TO GET EACH OTHER FIRED IT REQUIRES A HYPERACTIVE IMAGINATION TO BELIEVE THAT SUCH ANTAGONISMS COULD BE SUBLIMATED IN THE CREATION OF AN IRAN CONTRA COVERUP AND THEN SUSTAINED FOR SEVEN YEARS THE THIRD HEADLINE CONCERNS GEORGE BUSH OR RATHER MR. WALSH'S NEWFOUND OBSESSION WITH HIM AFTER YEARS OF SHADOWING MR. REAGAN AND HINTING DARKLY THAT HE'D EVENTUALLY BE HARPOONED MR. WALSH SUDDENLY GAVE UP THE CHASE AND SHIFTED TARGETS WHATEVER THE EXPLANATION THE SHIFT BESPEAKS A CERTAIN CAPRICIOUSNESS IN MR. WALSH'S DECISION MAKING PROCESS RATHER THAN THE RELENTLESS INVESTIGATORY RIGOR HE WOULD HAVE US BELIEVE HE EMPLOYED BUT MOST OF THE NEWS IS ABOUT MR. WALSH AND HIS TEAM APPENDED TO MR. WALSH'S ACCOUNT ARE MORE THAN ONE THOUSAND PAGES OF RESPONSES FROM PERSONS NAMED IN THE REPORT OR GIVEN THE NATURE OF WASHINGTON FROM THEIR LAWYERS A VICTIM'S GUIDE TO HOW WE SUBVERTED OUR OWN LEGAL SYSTEM MUCH OF THIS IS BRAND NEW FOR IT COMES FROM THE INDIANS NOT FROM THE CHIEFS FROM SECRETARIES AND ASSISTANTS AND OTHER MIDLEVEL CIVIL SERVANTS NO ONE IS TOO SMALL TO BECOME A TARGET OF MR. WALSH'S CRUELTY HE ACCUSES THEM ALL OF CRIME OR SIN WHILE STRESSING HE DOES NOT HAVE ENOUGH TO WARRANT INDICTMENT OR ENSURE CONVICTION HE PUTS HIS BLACK SPOT ON THEM THEIR RESPONSES CONSTITUTE A BLOODCURDLING CATALOG OF MR. WALSH'S VICIOUSNESS UNETHICAL BEHAVIOR AND ASTOUNDING INCOMPETENCE FOR EXAMPLE BOTH OF MR. WEINBERGER'S SECRETARIES PENTAGON PROFESSIONALS FOR MORE THAN TWENTY YEARS WERE ACCUSED OF LYING BOTH DENIED IT ONE OF THEM THELMA STUBBS SMITH WAS HAULED IN FRONT OF A GRAND JURY WHERE ONE OF MR. WALSH'S MEN ACCUSED HER OF LYING SHOCKED SHE DENIED IT AND HER LAWYER DEMANDED A CORRECTION NONE WAS MADE LATER MR. WALSH'S LAWYER ASKED TO INTERVIEW HER WITHOUT HER LAWYER BEING PRESENT THE REQUEST WAS CATEGORICALLY DENIED THREE DAYS LATER MR. WALSH'S LAWYER SHOWED UP AT HER DOOR AT EIGHT ASKING TO TALK TO HER HER HUSBAND SENT THE ROGUE AWAY MEANWHILE THE OTHER SECRETARY KAY LEISZ WAS INFORMED THAT SHE WAS NOW A SUBJECT OF MR. WALSH'S INVESTIGATION THE REPORT ACCUSES HER OF FALSE TESTIMONY HER LAWYER'S RESPONSE SHOWS THE OPPOSITE AND SAYS IT APPEARS THAT THE ONLY RATIONALE THAT MR. WALSH'S OFFICE MIGHT HAVE IS THAT SHE MAY NOT HAVE SAID WHAT THEY WANTED TO HEAR THE SAME KINDS OF VENGEFUL ACTIONS WERE TAKEN AGAINST SAMUEL WATSON ONE OF MR. BUSH'S ASSISTANTS MR. WATSON WAS ACCUSED OF PRONOUNCING THE MAGIC WORDS CONTRA RESUPPLY AS A POSSIBLE SUBJECT FOR DISCUSSION AT A MEETING IN THE VICE PRESIDENT'S OFFICE HE DIDN'T REMEMBER IT AND DENIED ANY KNOWLEDGE OF THE SUPPLY OF MILITARY EQUIPMENT TO THE CONTRAS MR. WALSH SOMEHOW CONVINCED THAT MR. WATSON WAS COVERING UP FOR MR. BUSH PROCLAIMS HIM A LIAR MR. WATSON'S LAWYER FORMER SPECIAL PROSECUTOR JACOB STEIN OBSERVED THAT IT WAS NOT FOR ILLEGAL ACTS THEMSELVES THAT THE SPECIAL PROSECUTOR SOUGHT MR. WATSON BUT RATHER FOR HIS INABILITY YEARS LATER TO REMEMBER EVENTS AS THE SPECIAL PROSECUTOR WISHED HIM TO MR. STEIN DELICATELY OBSERVES THAT SUCH BEHAVIOR QUOTE VIOLATES THE FAIRNESS OF OUR AMERICAN SENSE OF RIGHT AND WRONG QUOTE THE ENTIRE CASE AGAINST C. I. A. STATION CHIEF JOE FERNANDEZ WAS A JOKE MR. WALSH BUNGLED THE HANDLING OF CLASSIFIED INFORMATION SO BADLY THAT NOT EVEN AN APPEAL FROM THE JUSTICE DEPARTMENT TO THE COURT COULD SAVE HIM TYPICALLY MR. WALSH THANKED JUSTICE BY BLAMING THEM FOR THE SCREWUP HIS KEY WITNESS TO THE CHARGE OF FALSE TESTIMONY AGAINST MR. FERNANDEZ HAD ALREADY TOLD THE OFFICE OF THE INDEPENDENT COUNSEL THAT HIS OWN MEMORY WAS TAINTED BY THE PUBLIC TESTIMONY OF OTHERS THEREBY MAKING HIM A USELESS SOURCE MR. WALSH'S LAWYERS ATTEMPTED TO BROWBEAT HIM INTO TESTIFYING THAT THERE WAS NO TAINT AND LAWYERS' REPLIES SHOW THAT SEVERAL OF THE STATEMENTS MR. WALSH CHARACTERIZED AS FALSE WERE IN FACT TRUE STRIKINGLY GIVEN MR. WALSH'S PROPENSITY FOR ACCUSING FOLKS OF WITHHOLDING INFORMATION FROM HIM THERE ARE SEVERAL CASES WHERE MR. WALSH WAS CHASTISED BY FEDERAL JUDGES FOR FAILING TO PROVIDE THE DEFENSE WITH EXCULPATORY MATERIAL IN THE WEINBERGER AND FERNANDEZ CASES DEFENSE ATTORNEYS HAD TO USE PRETTY ROUGH LANGUAGE TO GET MR. WALSH'S TEAM TO COMPLY AND IN ONE OF THOSE ODD MOMENTS THAT MAKE IRAN CONTRA SUCH AN UNLIKELY TALE IT WAS ONLY WHEN OLIVER NORTH'S LAWYERS INSISTED ON IT THAT MR. WALSH REALIZED HE HAD DOZENS OF CARTONS OF MR. NORTH'S FILES IN HIS POSSESSION SUCH TESTIMONY AND THERE ARE DOZENS OF EXAMPLES SHOWS MR. WALSH STOMPING ON HIS VICTIMS' BASIC RIGHTS INDEED PUBLISHING THE REPORT IS ITSELF PROFOUNDLY UNFAIR IF NOT ILLEGAL FROM TIME IMMEMORIAL IT HAS BEEN CONSIDERED UNETHICAL FOR PROSECUTORS TO MAKE ALLEGATIONS AGAINST PERSONS THEY DO NOT INDICT YET THE FINAL REPORT CONTAINS HUNDREDS PERHAPS THOUSANDS OF SUCH UNPROVEN ALLEGATIONS EVEN INCLUDING EXCERPTS OF GRAND JURY TESTIMONY GRAND JURY PROCEEDINGS HAVE ALWAYS BEEN SECRET IN PART TO PROTECT PEOPLE THE GRAND JURY DECIDES NOT TO INDICT MR. WALSH BIZARRELY PROCLAIMED THAT SUCH REQUIREMENTS DO NOT APPLY TO SPECIAL PROSECUTORS AND STUCK THE TESTIMONY IN HIS REPORT THE SPECIAL COURT THAT THEORETICALLY OVERSEES THE WORK OF SPECIAL PROSECUTORS REJECTED HIS THEORY BUT PERMITTED THE REPORT TO APPEAR ANYWAY ON THE FEEBLE GROUNDS THAT VERY LITTLE OF THE MATERIAL WAS REALLY SECRET ANYWAY AND A LOT OF PEOPLE ESPECIALLY JOURNALISTS WOULD BE ANGRY IF THE COURT DIDN'T PUBLISH IT IT WAS A COWARDLY THING FOR THE COURT TO DO AND THE THREE JUDGES OBVIOUSLY KNEW IT FOR THEY TOOK PAINS TO INDICATE THEIR SYMPATHY FOR THOSE UNINDICTED PEOPLE BESMIRCHED BY THE REPORT HAD THEY BEEN MADE OF STERNER STUFF THE JUDGES WOULD HAVE INSTRUCTED MR. WALSH TO DELETE ALL ACCUSATIONS AGAINST UNINDICTED PEOPLE AND TO REMOVE ALL REFERENCES TO GRAND JURY TESTIMONY SUCH A DOCUMENT WOULD HAVE FULFILLED MR. WALSH'S OBLIGATION TO SUBMIT A FINAL REPORT AND ALSO MAINTAINED THE QUAINT NOTION THAT AMERICANS ARE HELD INNOCENT UNLESS PROVED GUILTY WE LEARNED SOME YEARS AGO THAT MR. WALSH WAS CONTEMPTUOUS OF SUCH ARCHAIC LEGAL NOTIONS IT WAS BAD NEWS THAT THE SPECIAL COURT WOULDN'T DEFEND THEM EITHER MR. LEDEEN A RESIDENT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE WAS A CONSULTANT TO NATIONAL SECURITY ADVISER ROBERT MCFARLANE IN NINETEEN EIGHTY FIVE HE WAS THE FIRST AMERICAN OFFICIAL TO MAKE CONTACT WITH ISRAELIS AND IRANIANS IN WHAT LATER BECAME THE IRAN INITIATIVE AND WAS CLEARED OF ALL ALLEGATIONS OF WRONGDOING IN THE FINAL IRAN CONTRA REPORT OF THE MANY RESPONSES TO RETIRED ADMIRAL BOBBY RAY INMAN'S ANNOUNCED REASON FOR DECLINING THE NOMINATION FOR THE POST OF DEFENSE SECRETARY NAMELY THE EXISTENCE OF A MCCARTHYITE CONSPIRACY AGAINST HIM SENATE MINORITY LEADER ROBERT DOLE'S STANDS OUT FOR ITS SUCCINCTNESS QUOTE I THINK QUOTE THE SENATOR MUSED QUOTE HE OUGHT TO GO HOME AND GET A GOOD NIGHT'S SLEEP QUOTE A PRIME TARGET OF ADMIRAL INMAN'S ACCUSATIONS ALONG WITH COLUMNIST WILLIAM SAFIRE SENATOR DOLE HAD SOME REASON FOR DISPENSING THIS WASPISH IF ALSO SAGE BIT OF ADVICE UNFORTUNATELY THE PROPENSITY NOW RAMPANT FOR REPRESENTING ONESELF AS A VICTIM OF A NEW MCCARTHYISM ISN'T LIKELY TO BE CURED BY ANYTHING AS SIMPLE AS A GOOD NIGHT'S SLEEP IF ADMIRAL INMAN THINKS HE IS THE VICTIM OF A MODERN DAY MCCARTHYISM BECAUSE OF SOME PRESS CRITICISM IT MIGHT BE INSTRUCTIVE TO KNOW WHAT HE THINKS HAPPENED TO ROBERT BORK AND CLARENCE THOMAS STILL ONE REMEDY DOES EXIST NAMELY A WILLINGNESS TO REMEMBER WHAT THE REAL MCCARTHYISM WAS ADMIRAL INMAN IS AS HE NOTES HIMSELF OLD ENOUGH TO REMEMBER IT ONLY REQUIRED BEING OLD ENOUGH TO READ A PAPER DURING THE MCCARTHY ERA TO REMEMBER WHAT MCCARTHYISM WAS FOREVER AND THOSE WHO HAVE THIS MEMORY AREN'T INCLINED TO THROW ACCUSATIONS OF MCCARTHYISM AROUND LIGHTLY NOR IS IT EASY FOR MANY OF THEM TO CHOOSE WHICH EVENT BEST RECALLS THE ERA AND THE ISM THE ATTACK ON GEORGE C. MARSHALL ADMIRAL INMAN MIGHT WANT TO STUDY THAT ONE FOR A REFRESHER ON WHAT MCCARTHYISM ACTUALLY WAS AND WAS NOT IT WAS NOT ABOUT FOR EXAMPLE CRITICISM BY COLUMNISTS OR SUGGESTIONS THAT NOMINEES FOR HIGH OFFICE MIGHT FACE SOME GRILLING BEFORE BEING CONFIRMED MCCARTHYISM'S FOCUS WAS THE EXPLOITATION OF PUBLIC FEARS IN A DANGEROUS POSTWAR WORLD IN WHICH THE SOVIET THREAT AND ATOMIC WARFARE LOOMED LARGE ON JUNE FOURTEENTH NINETEEN FIFTY ONE THE SENATOR FROM WISCONSIN WENT BEFORE THE SENATE TO DELIVER WORD THAT SECRETARY OF STATE MARSHALL HAD AS A MILITARY LEADER IN WORLD WAR TWO STUBBORNLY AND SKILLFULLY ALWAYS AND INVARIABLY SERVED THE WORLD POLICY OF THE KREMLIN AND HAD ALONG WITH DEAN ACHESON LATER BROUGHT ABOUT STEP BY STEP BY WILL AND INTENTION A CONSPIRACY ON A SCALE SO IMMENSE AS TO DWARF ANY PREVIOUS SUCH VENTURE IN THE HISTORY OF MAN THE OBJECT OF MARSHALL'S CONSPIRACY THE SENATOR WENT ON TO EXPLAIN WAS THAT THE U. S. WOULD FINALLY FALL VICTIM TO SOVIET INTRIGUE FROM WITHIN AND RUSSIAN MILITARY MIGHT FROM WITHOUT SENATOR MCCARTHY'S DEVOTED ADHERENT CANDY MANUFACTURER AND JOHN BIRCHITE ROBERT H. WELCH JUNIOR WOULD SOME YEARS LATER ADD DWIGHT EISENHOWER TO THE MIX OF SOLDIER STATESMAN TRAITORS IN MR. WELCH'S VIEW PROCLAIMED IN THE POLITICIAN GENERAL EISENHOWER WAS THROUGHOUT THE WAR AND DURING HIS PRESIDENCY A DEDICATED CONSCIOUS AGENCY OF THE COMMUNIST CONSPIRACY HE HAD COME TO THIS CONCLUSION MR. WELCH ASSURED HIS AUDIENCE THROUGH AN ACCUMULATION OF DETAILED EVIDENCE SO EXTENSIVE AND SO PALPABLE THAT IT SEEMS TO PUT THIS CONVICTION BEYOND ANY REASONABLE DOUBT IT'S HARDLY NECESSARY TO ADD THAT MCCARTHYISM AND ITS ADHERENTS ON THE CONGRESSIONAL COMMITTEES INVESTIGATING LOYALTY TOOK THEIR GREATEST TOLL ON CAREERS AND IN SOME CASES LIVES OF LESS RENOWNED CITIZENS THAN THOSE CITED ABOVE THE STORIES OF WHAT HAPPENED TO THE HAPLESS PERFORMERS WHOSE NAMES APPEARED IN SAY QUOTE RED CHANNELS QUOTE OR THE TEACHER WHO HAD ONCE GONE TO A MEETING OF SOME ORGANIZATION LATER REVEALED AS A COMMUNIST FRONT ARE TOO WELL KNOWN TO REQUIRE REPEATING STILL THEY HAVE A WAY OF RISING UP IN MEMORY WHENEVER SOMEBODY INVOKES FRIVOLOUS CLAIMS OF MCCARTHYISM TODAY THERE IS SUCH A THING AS A MODERN DAY MCCARTHYISM OF COURSE AND THOSE OF US WHO REMEMBER THE REAL THING KNOW THE NEW KIND WHEN WE SEE IT MCCARTHYISM'S REINCARNATION IS FOR INSTANCE ALIVE AND WELL ON AMERICAN COLLEGE CAMPUSES PLACES WHERE FOR INSTANCE VIOLATION OF THE PREVAILING POLITICAL RELIGIONS CAN MEAN FOR AN ACADEMIC THE END OF ANY HOPE OF PROFESSIONAL ADVANCEMENT IN THE ERA OF THE BLACKLIST IN THE NINETEEN FIFTIES LOYALTY SPECIALISTS EXAMINED HOLLYWOOD SCRIPTS FOR WORDS AND IDEAS THAT CONSTITUTED PROOF OF SUBVERSION ON CAMPUSES TODAY WORDS AND IDEAS UTTERED IN CLASSROOMS UNDERGO SIMILAR SCRUTINY FOR SIGNS OF SEXUAL OR RACIAL INSULT THE GREAT DIFFERENCE BETWEEN THE CAMPUSES DURING THE NINETEEN FIFTIES AND TODAY IS THAT DURING THE MCCARTHY PERIOD THE COLLEGES WERE CENTERS OF RESISTANCE TO THE KNOW NOTHINGS TODAY THEY ARE THE VITAL CENTERS OF A CULTURAL POLICE STATE MORE PRIMITIVE EVEN THAN THE OLD MCCARTHYISM PERHAPS ADMIRAL INMAN HAS TAKEN AWAY THE WRONG LESSONS FROM HIS OWN EXPERIENCE OF THE MCCARTHY ERA THERE IS INDEED A SLIGHT TOUCH OF THE OLD MCCARTHY FLAIR ITSELF IN THE WAY THE ADMIRAL CHARACTERIZES HIS CRITICS IN THE FACILITY WITH WHICH THOUGHTS OF CONSPIRACY REAR THEIR HEADS IN THE WAY WITNESSES TO THE PLOTS AGAINST HIM GO UNNAMED IT ISN'T TOO LATE FOR THE ADMIRAL AND THOSE SIMILARLY DISPOSED TO GO BACK AND GET A GRIP ON THE FACTS OF MCCARTHYISM THE REAL THING MS. RABINOWITZ IS A WALL STREET JOURNAL EDITORIAL WRITER IN RESPONSE TO YOUR DECEMBER TWENTY SEVENTH EDITORIAL QUOTE A SNAIL RETREAT QUOTE BEST FRIENDS ANIMAL SANCTUARY IS THE QUOTE WILDLIFE REFUGE QUOTE TO WHICH YOU REFER IT'S THE LARGEST NO KILL ANIMAL SANCTUARY FOR DOGS AND CATS IN THE COUNTRY AND IT'S ADJACENT TO BRANDT CHILD'S PROPERTY FEDERAL OFFICIALS TOLD MR. CHILD HE WOULD BE FINED FIFTY THOUSAND DOLLARS PER SNAIL IF THE GEESE SOMEONE ABANDONED ON HIS PROPERTY ATE ANY OF THE ENDANGERED KANAB AMBERSNAILS IN THE LAKES ON HIS LAND YES IT'S TRUE THAT MR. CHILD WILL NOT BE ALLOWED TO TURN HIS SMALL PIECE OF THIS DELICATE LAND INTO ANOTHER GOLF COURSE BESIDES THERE'S ALREADY A GOLF COURSE IN THE TINY LOCAL TOWN AND MOST TOURISTS DON'T COME HERE TO PLAY GOLF MOSTLY THEY'RE ECOTOURISTS AND ANIMAL LOVERS WHO COME TO VISIT THE INSPIRING WONDERS OF THE GRAND CANYON AND THE GOLDEN CIRCLE OF NATIONAL PARKS SURROUNDING ANGEL CANYON WHEN WE HEARD ABOUT THE AMBERSNAIL PROBLEM WE OFFERED TO RELOCATE AS MANY AS POSSIBLE OF THE CRITTERS TO THE SANCTUARY HERE WHERE THERE'S A GOOD SNAIL HABITAT BUT THE PUBLICITY MR. CHILD HAS ENJOYED IS PROMISING TO MAKE HIS PIECE OF THE LOCAL ECOSYSTEM A MORE PROFITABLE ENTERPRISE THAN A GOLF COURSE COULD EVER HAVE DONE THIS SUMMER IT WILL BE ANOTHER STOPPING PLACE FOR NATURE LOVERS ON VACATION HOUSTON PRIVATE EYE EDMUND J. PANKAU CLAIMS TO HAVE PULLED OFF EXPLOITS THAT WOULD TURN SAM SPADE HIMSELF GREEN WITH ENVY IN THE COURSE OF HIS TWO DECADE CAREER THE FORTY EIGHT YEAR OLD INVESTIGATOR ACCORDING TO PUBLISHED REPORTS HAS HELPED NAB A NOTORIOUS GANG OF JEWEL THIEVES VIDEOTAPED DONNA RICE AND FORMER U. S. SENATOR GARY HART TOGETHER AND RUSHED INTO A BURNING BUILDING TO SNATCH A COMPUTER PRINTOUT OF THE FINANCIAL HOLDINGS OF DEPOSED PANAMANIAN LEADER MANUEL NORIEGA FROM THESE AND OTHER TALES MR. PANKAU HAS GAINED A COLORFUL NOTORIETY PARTICULARLY IN TEXAS NEARLY ALL MAJOR NEWSPAPERS IN THE U. S. INCLUDING THIS ONE HAVE QUOTED HIM HE APPEARS OFTEN ON TELEVISION NEWSMAGAZINE SHOWS PHIL DONAHUE LARRY KING AND JOAN RIVERS HAVE ALL INTERVIEWED HIM THE HEADLINE OF A NINETEEN NINETY TWO NEW YORK TIMES PAGE ONE ARTICLE BILLED HIM AS QUOTE A NEW BREED OF SAM SPADE QUOTE THAT STORY WAS FOLLOWED BY A BOOK DEAL WITH MACMILLAN INCORPORATED FOR HIS AUTOBIOGRAPHY BUT WHETHER MR. PANKAU'S LARGER THAN LIFE IMAGE IS JUSTIFIED IS AN OPEN QUESTION WRITER ROBERT PACK WHO SIGNED TO WORK ON THE AUTOBIOGRAPHY SPENT SIX MONTHS RESEARCHING HIS SUBJECT'S CLAIMS AND HE BEGAN TO WORRY THAT THE DETECTIVE WHO BUILT HIS CAREER ON SNIFFING OUT UNTRUTHS MIGHT BE TELLING A FEW HIMSELF I DO NOT BELIEVE IT IS POSSIBLE TO PRODUCE A TRUE LIBEL FREE BOOK ABOUT YOUR CAREER MR. PACK WROTE MR. PANKAU LAST APRIL IN AN ACCOMPANYING FIFTEEN PAGE STATEMENT WHICH BECAME PUBLIC LAST WEEK AS PART OF A LAWSUIT MR. PACK ARGUED THAT THE SLEUTH COULDN'T DOCUMENT CLAIMS HE HAD MADE BEFORE SIGNING THE BOOK DEAL MR. PACK SAYS MR. PANKAU HAD PROMISED BUT NEVER DELIVERED NEW INFORMATION ON THE IRAN CONTRA SCANDAL AND DETAILS OF HIS INVESTIGATIONS OF GIGANTIC FIGURES IN WHITE COLLAR CRIME PEOPLE HE CALLED UNKNOWN KEATINGS ACCORDING TO MR. PACK'S STATEMENT MR. PANKAU'S PROMISES MAY CONSTITUTE FRAUD ON HIM AND MACMILLAN THE PUBLISHER DECLINES TO COMMENT THE DOCUMENT BECAME PUBLIC WHEN MR. PANKAU FILED A DEFAMATION SUIT AGAINST MR. PACK IN STATE DISTRICT COURT IN HOUSTON LAST MONTH THE SUIT SEEKING MORE THAN FIVE MILLION DOLLARS IN DAMAGES CHARGES THAT MR. PACK IS SPREADING VICIOUS AND UNSUBSTANTIATED STATEMENTS ABOUT ED PANKAU'S VERACITY MORAL CHARACTER AND HONOR MR. PANKAU'S ATTORNEYS IN ATTACHING MR. PACK'S STATEMENT AS EVIDENCE FILED A MOTION TO SEAL IT FROM PUBLIC VIEW BUT DISTRICT COURT JUDGE MICHAEL SCHNEIDER INITIALLY LEFT IT OPEN PENDING A HEARING ON THE MOTION AT MR. PACK'S REQUEST THE CASE WAS TRANSFERRED TO FEDERAL DISTRICT COURT IN HOUSTON FRIDAY AND A MOTION BY MR. PANKAU'S LAWYERS TO SEAL PARTS OF THE FILES IS NOW PENDING THERE MR. PACK WHO AMONG OTHER THINGS COLLABORATED WITH FORMER WHITE HOUSE SPOKESMAN LARRY SPEAKES ON A BEST SELLER ABOUT THE REAGAN ADMINISTRATION DECLINES TO COMMENT ON MR. PANKAU HE IS UNDER AN ORDER PROHIBITING HIM FROM COMMENTING ACCORDING TO THE LAWSUIT AS PART OF A CASE HE HAS PENDING AGAINST MR. PANKAU WITH THE AMERICAN ARBITRATION ASSOCIATION THE SUIT DOESN'T SPECIFY WHAT THE ARBITRATION CASE IS ABOUT MR. PANKAU WHO HEADS HIS OWN HOUSTON BASED FIRM INTERTECT INCORPORATED HAS DECLINED TO DISCUSS THE LAWSUIT AND THE ALLEGATIONS IN MR. PACK'S STATEMENT WITH THE WALL STREET JOURNAL ASIDE FROM ONE BRIEF PHONE CONVERSATION ASKED FOR HIS VERSION OF THE HIGHLIGHTS OF HIS CAREER MR. PANKAU MADE AN APPOINTMENT WITH A REPORTER BUT HIS OFFICE CANCELED IT SAYING HE WAS DETAINED IN DALLAS THE NEXT DAY MR. PANKAU AGREED TO CALL A REPORTER AT A SPECIFIED TIME BUT DIDN'T HIS WIFE SAID HE WAS CALLED AWAY ON AN EMERGENCY SOME FORMER CLIENTS DEFEND MR. PANKAU AS A COMPETENT INVESTIGATOR MONTY E. PENDLETON A HOUSTON BASED CONSULTANT SAYS MR. PANKAU TRACKED DOWN REAL ESTATE HOLDINGS OF ONE OF HIS DEBTORS BY FORAGING THROUGH PUBLIC RECORDS IN ANOTHER STATE QUOTE HE'S GOT A BIG EGO AND LIKES TO BRAG QUOTE MR. PENDLETON SAYS BUT HE ALSO DELIVERS WELL KNOWN AS A FINANCIAL INVESTIGATOR MR. PANKAU HAS WORKED FOR CLIENTS RANGING FROM BANKS TO THE FEDERAL GOVERNMENT SINCE NINETEEN EIGHTY NINE HE HAS DONE THIRTY TWO JOBS FOR THE RESOLUTION TRUST CORPORATION MOSTLY SEARCHES OF PUBLIC RECORDS AND COLLECTED ABOUT ONE HUNDRED FIFTY THOUSAND DOLLARS IN FEES SAYS AGENCY SPOKESMAN STEPHEN KATSANOS HE WAS AN AVERAGE PERFORMER MR. KATSANOS SAYS MR. PANKAU HAS LONG CLAIMED TO BE WELL ABOVE AVERAGE AS A DETECTIVE BUT HE HASN'T CHAMPIONED HIS VERACITY IN HIS NINETEEN NINETY TWO BOOK CHECK IT OUT A HOW TO BOOK ON FINDING OUT ABOUT THE PEOPLE IN YOUR LIFE HE ADVISES WOULD BE PRIVATE EYES NOT TO BE SHY ABOUT TELLING A FIB OR TWO THE TRUE SECRET OF THE SUPERSLEUTHS IS OFTEN A GLIB TONGUED SMOOTH TALKING LITTLE PRETEXT A WHITE LIE THAT OFTEN FALLS INTO THE GRAY AREA BUT NOT ILLEGAL REALM OF THE LAW ONE OF MR. PACK'S BIGGEST COMPLAINTS ACCORDING TO HIS STATEMENT IS THAT IN THE COURSE OF HIS INTERVIEWS WITH MR. PANKAU SOME OF THEM TAPED THE DETECTIVE CONTRADICTED HIMSELF REPEATEDLY SOME PUBLICATIONS INCLUDING BUSINESS WEEK HAVE SAID MR. PANKAU WAS A GREEN BERET IN VIETNAM ONE ARTICLE IN A NINETEEN NINETY TWO ISSUE OF FLORIDA STATE MAGAZINE SAID HE WAS WOUNDED IN COMBAT BUT MR. PANKAU TOLD HIS BIOGRAPHER HE WAS NEVER IN VIETNAM ACCORDING TO MR. PACK'S STATEMENT WHEN PRESSED TO EXPLAIN HE ALLEGEDLY GAVE MR. PACK SEVERAL STORIES ONCE SAYING HE HAD FLOWN OVER VIETNAM AND LANDED BRIEFLY NEVER LEAVING THE PLANE AND ANOTHER TIME CLAIMING HE HAD BEEN IN VIETNAM FOR A COUPLE OF DAYS BUT WASN'T ALLOWED TO TALK ABOUT IT ARMY FILES FROM THE GOVERNMENT'S NATIONAL PERSONNEL RECORDS CENTER IN SAINT LOUIS SHOW MR. PANKAU SPENT TWO WEEKS IN OKINAWA BUT OTHERWISE SERVED ENTIRELY IN THE U. S. HIS FILES DON'T INDICATE THAT HE WAS A GREEN BERET OR THAT HE WAS WOUNDED INFORMATION THAT WOULD NORMALLY BE INCLUDED ON MILITARY RECORDS SAYS CHERYL BETTS A SPOKESWOMAN FOR THE CENTER MR. PANKAU HAS BUILT HIS IMAGE PARTLY ON HIS EXPERIENCE WITH THE INTERNAL REVENUE SERVICE THE BIOGRAPHICAL SKETCH IN CHECK IT OUT CITES HIS TWENTY YEARS OF INVESTIGATIVE EXPERIENCE BOTH AS A SPECIAL AGENT FOR THE I. R. S. AND AS A PRIVATE EYE THE BOOK ALSO RECOUNTS HOW MR. PANKAU'S BOSS AT THE I. R. S. TRACKED A NOTORIOUS GANG OF JEWELRY THIEVES BY SCREENING SUBSCRIPTION LISTS OF JEWELRY MAGAZINES FOR PEOPLE WITH CRIMINAL RECORDS QUOTE THE INFAMOUS MURPH THE SURF AND HIS GANG NEVER DID FIGURE OUT THAT WE NAILED THEM BY FINDING THEIR ADDRESS ON A JEWELRY MAGAZINE SUBSCRIPTION LIST QUOTE MR. PANKAU WRITES IN QUOTE CHECK IT OUT QUOTE BUT WHEN MR. PACK TOLD MR. PANKAU THAT MURPH THE SURF WAS JAILED BEFORE MR. PANKAU BEGAN WORKING FOR THE I. R. S. THE PRIVATE EYE SAID HE HAD FORGOTTEN THAT AND CHANGED HIS STORY TO SAY THE UNIT HAD INVESTIGATED OTHER MEMBERS OF THE GANG ACCORDING TO MR. PACK'S STATEMENT JOHN MCRAE A SUPERVISOR AT THE MIAMI I. R. S. UNIT IN THE EARLY NINETEEN SEVENTIES WHEN MR. PANKAU WAS THERE DISPUTES EVEN THE SCALED DOWN VERSION I DON'T REMEMBER ANYTHING ABOUT MURPH THE SURF MR. MCRAE SAYS IF WE HAD A SUCCESSFUL INVESTIGATION ON HIM I WOULD REMEMBER MOREOVER MR. MCRAE SAYS MR. PANKAU WAS PRIMARILY A TRAINEE NOT A FULL FLEDGED SPECIAL AGENT AND STAYED LESS THAN A YEAR MR. MCRAE SAYS HE REMEMBERS MR. PANKAU ONLY BECAUSE HE FAILED THE BACKGROUND CHECK THAT'S VERY RARE MR. MCRAE SAYS ADDING THAT HE DOESN'T REMEMBER WHY MR. PANKAU THEN IN HIS MID TWENTIES FAILED THE I. R. S.'S FLORIDA OFFICES SAY THEIR RECORDS DON'T GO BACK FAR ENOUGH TO HAVE ANY INFORMATION ON MR. PANKAU ONE OF MR. PANKAU'S MOST RENOWNED FEATS OF DERRING DO WAS THE TIME HE SUPPOSEDLY SNATCHED A LIST OF GENERAL NORIEGA'S HOLDINGS FROM A BURNING BUILDING NEW YORK TIMES REPORTER STEVE LOHR WROTE IN HIS ARTICLE ON PAGE ONE OF THE PAPER'S FEBRUARY TWENTIETH NINETEEN NINETY TWO EDITION MR. PANKAU WAS IN PANAMA ON AN INSURANCE INVESTIGATION DURING THE AMERICAN INVASION IN THE CONFUSION HE SLIPPED INTO A BUILDING AND MADE OFF WITH A COMPUTER PRINTOUT LISTING MORE THAN EIGHT HUNDRED MILLION DOLLARS IN ASSETS HELD IN EIGHTEEN COUNTRIES ASSETS HE IS CONVINCED ARE GENERAL NORIEGA'S PERSONAL HOLDINGS QUOTE A SIMILAR VERSION APPEARS IN CHECK IT OUT MR. PANKAU BEGINS I JUST HAPPENED TO BE IN PANAMA DURING THE NINETEEN EIGHTY NINE INVASION SITTING IN A BAR WHEN PARACHUTES BLOSSOMED ALL OVER THE SKY BUT MR. PANKAU NOW SAYS HE WASN'T IN PANAMA WHEN THE FIGHTING BROKE OUT IN THE BRIEF PHONE CONVERSATION WITH THE WALL STREET JOURNAL MR. PANKAU SAID THAT THE TIMES STORY WAS A MISQUOTE AND THAT HIS EMPLOYEES NOT HE WERE IN PANAMA HE CUT OFF QUESTIONING BEFORE A REPORTER COULD ASK ABOUT THE DISCREPANCY BETWEEN THIS VERSION AND THE ACCOUNT HE GAVE IN HIS BOOK MR. LOHR THE TIMES REPORTER WAS TRAVELING AND COULDN'T BE REACHED A SPOKESMAN WILLIAM ADLER SAID TIMES EDITORS WERE NO LONGER FAMILIAR ENOUGH WITH DETAILS OF THE ARTICLE TO COMMENT THE U. S. ATTORNEY'S OFFICE IN MIAMI WHICH IN NINETEEN NINETY TWO SUCCESSFULLY PROSECUTED MR. NORIEGA ON DRUG TRAFFICKING CHARGES SAYS IT CONSIDERED USING THE DOCUMENT THAT MR. PANKAU CLAIMS LISTS GENERAL NORIEGA'S HOLDINGS BUT DIDN'T BECAUSE IT WAS NOT POSSIBLE TO VERIFY ITS AUTHENTICITY SAYS ASSISTANT U. S. ATTORNEY MICHAEL P. SULLIVAN MR. PANKAU MEANWHILE TOLD THE WALL STREET JOURNAL LAST WEEK THAT HE HAS BEEN RETAINED BY THE PANAMANIAN GOVERNMENT TO TRACK DOWN MR. NORIEGA'S ASSETS BUT EUSEBIO MARCHOSKY WHO HEADS THE PANAMANIAN GOVERNMENT'S LEGAL EFFORT TO RECOVER GENERAL NORIEGA'S ASSETS WORLD WIDE SAYS THE GOVERNMENT ISN'T IN CONTACT WITH MR. PANKAU QUOTE WE DON'T HAVE ANY SORT OF AGREEMENT WITH HIM QUOTE IN HIS STATEMENT MR. PACK SAYS MR. PANKAU HAD ALLUDED TO IMMORAL AND IN SOME CASES CRIMINAL ACTIVITY BY MAJOR PUBLIC AND POLITICAL FIGURES LEADING THE WRITER TO BELIEVE THAT EACH AND EVERY ONE OF PANKAU'S TIDBITS ABOUT THESE CELEBRITIES WOULD IF TRUE CREATE A MAJOR SENSATION UPON PUBLICATION OF THE BOOK BUT MR. PACK SAYS HE COULDN'T GET THE EVIDENCE HE NEEDED FROM MR. PANKAU ONE OF MR. PANKAU'S MOST NOTED ESCAPADES IS THE STORY HE TOLD ABOUT VIDEOTAPING MS. RICE AND SENATOR HART TOGETHER WHICH HE RECOUNTED IN A NINETEEN NINETY TWO ARTICLE IN THE WASHINGTON POST THE VERSION HE GAVE MR. PACK WAS EVEN MORE DETAILED CLAIMING ACCORDING TO MR. PACK'S STATEMENT IT WAS HE WHO CAUGHT GARY HART WITH DONNA RICE AND THAT HE TIPPED OFF THE MIAMI HERALD WHICH RESULTED IN NINETEEN EIGHTY SEVEN NEWS STORIES THAT KNOCKED HART THE LEADING CONTENDER FOR THE NINETEEN EIGHTY EIGHT DEMOCRATIC PRESIDENTIAL NOMINATION OUT OF THE RACE AND ENDED HART'S POLITICAL CAREER JAMES SAVAGE ASSOCIATE EDITOR FOR INVESTIGATIVE REPORTING AT THE MIAMI HERALD SAYS MR. PANKAU NEVER INFORMED THE HERALD OR GAVE IT ANY PICTURES BEFORE ITS STORY ON SENATOR HART'S RELATIONSHIP WITH MS. RICE I WAS THE EDITOR ON THE STORY I WOULD HAVE KNOWN MR. SAVAGE SAYS MR. PACK'S STATEMENT ALSO SAYS HE COULDN'T GET MR. PANKAU TO DOCUMENT A HOST OF DRAMATIC STORIES SUCH AS A CLAIM THAT HE WAS KIDNAPPED BY MIAMI DRUG LORDS OR AN ANECDOTE ABOUT THE TIME HE WON A BUGATTI AN EXPENSIVE ITALIAN SPORTS CAR IN A POKER GAME WITH A WEALTHY RANCHER ACCUSED OF MANSLAUGHTER LIKE THE NORIEGA STORY THE BUGATTI TALE HAS GONE THROUGH SEVERAL VERSIONS THE NEW YORK TIMES SAID HE WON THE CAR IN A JAILHOUSE POKER GAME WHILE MR. PACK CLAIMS THE PRIVATE EYE TOLD HIM THE GAME TOOK PLACE AT THE DEFENDANT'S HOME MR. PACK ALSO SAYS MR. PANKAU SHOWED HIM IN NINETEEN NINETY TWO THE CAR HE CLAIMED TO HAVE WON AND IT WASN'T A BUGATTI BUT QUOTE A V. W. BEETLE WITH SOME KIND OF FAKE FRONT END ATTACHED TO IT QUOTE ASKED TO RECOUNT THE STORY OF THE CAR TO THE JOURNAL MR. PANKAU SAID I DON'T WANT TO RIGHT NOW WHITTLE COMMUNICATIONS L. P. SAID THAT THREE MAJOR DRUG COMPANY ADVERTISERS WILL PROVIDE ONE HUNDRED FORTY SEVEN MILLION DOLLARS TO SPONSOR ITS MEDICAL NEWS NETWORK BUT THE COMPANY STILL NEEDS ABOUT FIFTY THREE MILLION DOLLARS MORE IN SPONSORSHIP COMMITMENTS TO LAUNCH THE NETWORK NATIONALLY THIS FALL WHITTLE DECLINED TO IDENTIFY THE THREE COMPANIES MEDICAL NEWS NETWORK AN ELECTRONIC NEWS AND INFORMATION SERVICE DELIVERED BY SATELLITE TO DOCTOR'S OFFICES HAS JUST COMPLETED A ONE YEAR TEST OF THE SERVICE IN SIX THOUSAND PHYSICIANS' OFFICES A NUMBER OF MAJOR DRUG COMPANIES PROVIDED ONE HUNDRED MILLION DOLLARS IN ADVERTISING AND SPONSORSHIP DOLLARS TO THE TEST WHICH ENDED MONDAY BUT CIBA GEIGY CORPORATION MERCK AND COMPANY AND ABBOTT LABORATORIES INCORPORATED CONFIRMED THAT FOR A NUMBER OF REASONS INCLUDING BUDGET CUTS AND CHANGES IN COMPANY MARKETING PLANS THEY WILL NOT PARTICIPATE IN THE NATIONAL LAUNCH OF MEDICAL NEWS NETWORK OTHERS THAT PARTICIPATED IN THE TEST INCLUDING MARION MERRELL DOW INCORPORATED PFIZER INCORPORATED JOHNSON AND JOHNSON AND GLAXO INCORPORATED SAID THEY WERE EITHER UNDECIDED ABOUT BACKING THE WHITTLE PROJECT FURTHER OR STILL IN NEGOTIATIONS WITH THE COMPANY IF MERCK STICKS WITH ITS DECISION NOT TO SUPPORT THE NATIONAL LAUNCH OF MEDICAL NEWS NETWORK IT WOULD BE A BLOW TO WHITTLE'S PLANS MERCK THE COUNTRY'S LARGEST DRUG COMPANY GAVE THE LARGEST CHUNK OF MONEY FOR WHITTLE'S TEST OF THE NETWORK CHRISTOPHER WHITTLE COMPANY FOUNDER AND CHAIRMAN SAID YESTERDAY IN AN INTERVIEW THAT WHITTLE IS QUOTE STILL IN DISCUSSIONS QUOTE WITH MERCK BUT LATE YESTERDAY A MERCK SPOKESWOMAN SAID WE HAVE DEFINITELY DECLINED TO PARTICIPATE FURTHER AT THIS TIME OUR RELATIONSHIP WITH WHITTLE IS TERMINATED ALAN GREENBERG MEDICAL NEWS NETWORK CHAIRMAN SAID IN A STATEMENT THAT IN ADDITION TO THE THREE THAT HAVE SIGNED ON FOR THE NATIONAL LAUNCH WHITTLE IS IN THE FINAL STAGES OF TALKS WITH FIVE OTHER POTENTIAL DRUG COMPANY SPONSORS NEGOTIATIONS ARE EXPECTED TO BE FINISHED IN A FEW WEEKS AND BY THE END OF THIS MONTH WHITTLE EXECUTIVES SAID THEY WILL RELEASE DETAILS ABOUT THE NETWORK'S NATIONAL LAUNCH INCLUDING PLANS FOR A SECOND ELECTRONIC NETWORK THAT WOULD REACH HEALTH INDUSTRY MANAGED CARE EXECUTIVES MEDICAL NEWS NETWORK LAUNCHED IN EARLY NINETEEN NINETY THREE WAS DEVISED AS AN INTERACTIVE WAY FOR MAJOR DRUG COMPANIES TO REACH THEIR MOST IMPORTANT CLIENTS PHYSICIANS WHO PRESCRIBE DRUGS AND MEDICATION WHITTLE HAS SPENT AN UNDISCLOSED SUM TO INSTALL PERSONAL COMPUTER LIKE VIDEO MONITORS AND KEYBOARDS IN PHYSICIANS' OFFICES DOCTORS CAN VIEW A DAILY MEDICAL NEWS PROGRAM ORDER DRUG SAMPLES REQUEST INFORMATION FROM COMPANIES BY FAX OR MAIL AND VIEW ACCREDITED CONTINUING MEDICALEDUCATION PROGRAMS AND NEWS SPECIALS FAILURE TO ATTRACT ENOUGH DRUG COMPANY SPONSORS FOR THE NATIONAL LAUNCH WOULD DEAL A POTENTIALLY CRIPPLING BLOW TO MEDICAL NEWS NETWORK AND ADD TO WHITTLE'S WOES IN GENERAL WHITTLE'S SPECIAL REPORT NETWORK FOR DOCTORS' WAITING ROOMS IS OPERATING AT A LOSS AND IS CONSIDERED PROBLEMATIC ACCORDING TO ONE WHITTLE EXECUTIVE EVEN THOUGH IT HAS HIRED NEW SALES PEOPLE AND OPENED NEW SALES OFFICES IN CHICAGO AND LOS ANGELES IN RECENT MONTHS AND WHITTLE'S FOR PROFIT EDISON SCHOOL PROJECT WHILE IMPRESSING PUBLIC SCHOOL GROUPS AND HIRING NEW STAFF WAS UNABLE TO ATTRACT BIG CORPORATE PARTNERS AND HAS BEEN SCALED BACK WHITTLE'S ADVERTISER SUPPORTED CHANNEL ONE IN SCHOOL NEWS BROADCAST CONTINUES TO GENERATE CONTROVERSY THOUGH WHITTLE SAID ADVERTISING DEMAND ON THE SYSTEM REMAINS STRONG THE HEAD OF THE INTERNATIONAL MONETARY FUND WARNED QUOTE IT MAY NOT BE EASY QUOTE FOR RUSSIA TO AGREE TO THE ECONOMIC REFORMS NECESSARY TO UNLOCK BILLIONS OF DOLLARS OF I. M. F. AND PRIVATE FINANCING MICHEL CAMDESSUS THE I. M. F.'S MANAGING DIRECTOR USED AN UNUSUAL MEETING WITH REPORTERS TO SEND A FIRM MESSAGE TO THE RUSSIAN GOVERNMENT AND TO DEFLECT GROWING CRITICISM THAT THE I. M. F. HAS DONE TOO LITTLE TO PRESS ECONOMIC REFORMS ON MOSCOW WE CONSIDER IT VITAL TO SPEED UP THE STABILIZATION AND REFORM PROCESS IN RUSSIA TO CREATE THE NECESSARY PRECONDITIONS FOR SUSTAINED GROWTH AND IMPROVED LIVING STANDARDS MR. CAMDESSUS SAID WE ALL KNOW THAT WITHOUT ADEQUATELY STRONG MONETARY AND BUDGETARY POLICIES NO EFFORTS TO REDUCE INFLATION AND STABILIZE THE RUBLE WILL BE SUCCESSFUL FOR LONG HE NOTED THAT LOWER INFLATION IS A PRECONDITION FOR ATTRACTING OFFICIAL AID AND PRIVATE INVESTMENT THAT RUSSIA NEEDS TO BUILD A STRONG MARKET ORIENTED ECONOMY MR. CAMDESSUS SPOKE AGAINST A BACKGROUND OF INCREASING CONCERN IN WASHINGTON AND EUROPE THAT RUSSIA IS MOVING IN THE WRONG DIRECTION WORSENING ECONOMIC CONDITIONS IN RUSSIA HAVE PRODUCED A BACKLASH AGAINST THE MONETARY AND BUDGETARY DISCIPLINE THAT'S AT THE HEART OF I. M. F. ADJUSTMENT PROGRAMS THE NEW PARLIAMENT ELECTED IN DECEMBER IS LESS COMMITTED TO WESTERN STYLE RESTRUCTURING AND SEVERAL LEADING REFORMERS HAVE RECENTLY LEFT THE GOVERNMENT AN I. M. F. TEAM ARRIVED IN RUSSIA THIS WEEK TO START NEGOTIATIONS ON AID THE IMMEDIATE ISSUE IS WHETHER RUSSIA CAN IMPOSE ENOUGH DISCIPLINE ON ITS ECONOMY TO WIN THE RELEASE OF ONE POINT FIVE BILLION DOLLARS IN I. M. F. FUNDS THE GOVERNMENT WANTS THE MONEY TO PAY OFF BUDGET ARREARS BUT AN ACCEPTABLE REFORM PROGRAM COULD ALSO UNFREEZE BILLIONS OF DOLLARS OF ADDITIONAL I. M. F. FUNDS TO HELP STABILIZE THE RUBLE AND CREATE THE CONDITIONS TO ATTRACT THE PRIVATE INVESTMENT NECESSARY TO HELP RUSSIA REBUILD ITS DILAPIDATED ENERGY MINING MANUFACTURING AND AGRICULTURAL INDUSTRIES WE DON'T GO TO MOSCOW WITH A PRE ESTABLISHED LIST OF THINGS THEY MUST DO MR. CAMDESSUS SAID BUT HE TICKED OFF THE KEY REQUIREMENTS LOWER INFLATION A CONSISTENT PACE OF STRUCTURAL REFORM LEADING TO A MARKET ECONOMY BASED ON WORLD PRICES THE GENERATION OF MORE RESOURCES FOR UNEMPLOYMENT BENEFITS PENSIONS AND OTHER SOCIAL SAFETY NETS BY DIVERTING MONEY FROM INDUSTRIAL SUBSIDIES A NATIONAL CONSENSUS FOR REFORM AND APPROPRIATE INTERNATIONAL SUPPORT MR. CAMDESSUS EXPRESSED PARTICULAR CONCERN ABOUT INFLATION WHICH IS CURRENTLY RUNNING AT A MONTHLY RATE OF ABOUT TWENTY PERCENT UP FROM TWELVE PERCENT IN DECEMBER WE MUST HAVE INFLATION GOING DOWN WE MUST HAVE A CREDIBLE BUDGET QUOTE HE SAID THEY WOULD LIKE TO PUT EMPHASIS ON NONMONETARY METHODS FOR CONTROLLING INFLATION HE SAID IF THAT MEANS BUDGET RESTRAINT THAT WOULD BE MUSIC TO OUR EARS HOWEVER HE SAID WE'RE HEARING ABOUT AID TO SPECIFIC SECTORS WHICH WOULD MEAN MORE NOT LESS GOVERNMENT SPENDING THE RUSSIAN REFORM EFFORT IS THE BIGGEST MOST COMPLEX JOB THE I. M. F. HAS UNDERTAKEN IN DEALING WITH RUSSIA THE I. M. F. HAS BEEN CALLED BOTH TOO HARSH AND TOO TIMID WE ARE THE SCAPEGOAT MR. CAMDESSUS SAID WE ARE THE CONVENIENT TARGET FOR CRITICISM WE MUST LIVE WITH THAT QUOTE MR. CAMDESSUS NOTED THAT THE WEST HAS DISBURSED THIRTY EIGHT BILLION DOLLARS OF THE FIFTY FIVE BILLION DOLLARS IT HAS PROMISED TO RUSSIA SINCE NINETEEN NINETY TWO MOST OF THE REST OF THE MONEY IS BEING HELD BACK BY THE I. M. F. AND THE WORLD BANK UNTIL CONDITIONS STABILIZE IN RUSSIA BUT IT IS PRIVATE INVESTMENT NOT OFFICIAL AID THAT ULTIMATELY WILL FINANCE THE REBUILDING OF RUSSIA WITH STABLE ECONOMIC CONDITIONS THE RATE OF RETURN ON INVESTMENT IN RUSSIA COULD BE EXTREMELY HIGH MR. CAMDESSUS SAID IN A MAJOR SHIFT IN STRATEGY PHILIP MORRIS COMPANIES SUED THE CITY OF SAN FRANCISCO TO TRY TO OVERTURN ONE OF THE NATION'S TOUGHEST ANTISMOKING ORDINANCES WITH THE SUIT PHILIP MORRIS'S FIRST LEGAL CHALLENGE TO A CITY SMOKING ORDINANCE THE COMPANY IS STEPPING UP ITS FIGHT AGAINST A NEW GENERATION OF SMOKING RESTRICTIONS AT THE LOCAL LEVEL THE SAN FRANCISCO ORDINANCE WHICH WENT INTO EFFECT YESTERDAY BANS SMOKING IN OFFICES AND CALLS FOR A BAN ON SMOKING IN RESTAURANTS BY JANUARY FIRST NINETEEN NINETY FIVE PHILIP MORRIS ASKED A STATE COURT TO DECLARE THE ORDINANCE INVALID AND UNENFORCEABLE ON THE GROUND THAT IT IS PRE EMPTED BY STATE SAFETY REGULATIONS IN THE PAST TWELVE MONTHS DOZENS OF CITIES AROUND THE COUNTRY HAVE PASSED EXTREMELY TOUGH ANTISMOKING LAWS BOLSTERED BY LAST YEAR'S ENVIRONMENTAL PROTECTION AGENCY REPORT THAT FOUND SECOND HAND CIGARETTE SMOKE CAUSES CANCER QUOTE LOCAL ORDINANCES ARE BY FAR THE MOST IMPORTANT SUCCESSES IN TOBACCO CONTROL QUOTE SAYS MARK PERTSCHUK CO DIRECTOR OF AMERICANS FOR NONSMOKERS' RIGHTS IN BERKELEY CALIFORNIA AT THE STATE AND FEDERAL LEVEL THE TOBACCO INDUSTRY IS REMARKABLY POWERFUL AND YOU DO NOT SEE THE KIND OF SUCCESSES WE SEE AT THE LOCAL LEVEL STEVE PARRISH PHILIP MORRIS'S GENERAL COUNSEL SAID THE COMPANY WILL SERIOUSLY CONSIDER CHALLENGING OTHER RESTRICTIVE CITY ORDINANCES AROUND THE COUNTRY THERE HAVE BEEN A LOT OF THEM COMING UP ESPECIALLY SINCE THE E. P. A. REPORT CAME OUT LAST YEAR SAID MR. PARRISH WE THINK THEY ARE A POTENTIAL PROBLEM PHILIP MORRIS JOINED WITH A GROUP OF LOCAL BUSINESSES TO FILE THE SUIT AS PART OF ITS FIGHT AGAINST TOUGH SMOKING RESTRICTIONS ON THE LOCAL LEVEL PHILIP MORRIS HAS BEEN AGGRESSIVELY LOBBYING AT STATE CAPITALS TO PASS LAWS THAT PRE EMPT RESTRICTIVE MUNICIPAL ORDINANCES ANTISMOKING ACTIVISTS IN NORTH CAROLINA ARE FUMING AT A TOBACCO INDUSTRY SUPPORTED LAW THAT REGULATES SMOKING IN PUBLIC PLACES BUT CONTAINS NO ACTUAL RESTRICTIONS ON SMOKING IT'S WORSE THAN BAD SAID ADAM GOLDSTEIN AN ASSISTANT PROFESSOR OF FAMILY MEDICINE AT THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL THE LAW WHICH WAS PASSED LAST YEAR CONTAINS A PROVISION THAT PREVENTS CITIES FROM ENACTING MORE RESTRICTIVE LAWS GOVERNING SMOKING IN PUBLIC PLACES QUOTE IT WILL STYMIE A LOT OF THE ACTION THAT WOULD HAVE OCCURRED AS A RESULT OF THE E. P. A. REPORT QUOTE SAID DOCTOR GOLDSTEIN WHO NOTES THAT NORTH CAROLINA CITIES RUSHED TO PASS TOUGH LOCAL LAWS BEFORE THE BILL BECAME LAW DOCTOR GOLDSTEIN SAID THE TOBACCO INDUSTRY ACTIVELY SUPPORTED THE LAW IT WAS THEIR BILL HE SAID THE ISSUE IS SOMEWHAT DIFFERENT IN THE CALIFORNIA CASE PHILIP MORRIS WHICH JOINED WITH LOCAL BAR AND HOTEL OWNERS TO FIGHT THE ORDINANCE ARGUES THAT THE CITY IS PRE EMPTED FROM PASSING THE LAW BECAUSE STATE WORKPLACE SAFETY RULES ARE RESPONSIBLE FOR REGULATING THE SAFETY OF WORKERS PHILIP MORRIS NOTES THAT IN A SIMILAR LAWSUIT IN NINETEEN NINETY TWO A CALIFORNIA JUDGE THREW OUT A SAN FRANCISCO ORDINANCE REGULATING THE USE OF VIDEO DISPLAY TERMINALS IN PRIVATE BUSINESSES BUT IN RECENT YEARS CITIES HAVE BEGUN TO ASSERT MORE AUTHORITY IN DETERMINING WHAT IS SAFE FOR THEIR RESIDENTS THERE ARE MANY ARGUMENTS FOR ALLOWING THIS TYPE OF THING TO BE DECIDED LOCALLY SAID GERALD FRUG A PROFESSOR OF LAW AT THE HARVARD LAW SCHOOL IT COULD BE DECIDED EITHER WAY HE ADDED THAT THE QUESTION OF PRE EMPTION IS BECOMING MORE OF AN ISSUE BECAUSE CITIES HAVE BECOME MORE CONCERNED ABOUT PROTECTING WORKERS BUT JEFFREY TANENBAUM A SAN FRANCISCO ATTORNEY REPRESENTING PHILIP MORRIS ASSERTED THAT SAN FRANCISCO HAS EXCEEDED ITS AUTHORITY IF EVERY LOCAL GOVERNMENT TOOK IT UPON ITSELF TO ISSUE VARYING WORKPLACE REGULATIONS HE SAID IT WOULD BE IMPOSSIBLE TO DO BUSINESS IN THIS NATION CALIFORNIA IN PARTICULAR HAS BECOME INCREASINGLY INHOSPITABLE TO SMOKERS WHICH IS PRESUMABLY ANOTHER REASON FOR PHILIP MORRIS'S STRONG SHOW OF FORCE LAST YEAR THE LOS ANGELES CITY COUNCIL PASSED A LAW BANNING SMOKING IN THE CITY'S SEVEN THOUSAND RESTAURANTS THE BAN WHICH HAS ALREADY TAKEN EFFECT IS BEING CHALLENGED IN COURT BY LOCAL BUSINESSES ANTISMOKING ACTIVISTS SAY THE CHALLENGE IS FUNDED BY THE TOBACCO INDUSTRY IN SAN FRANCISCO PHILIP MORRIS ACKNOWLEDGES IT APPROACHED BUSINESSES ABOUT JOINING FORCES ON THE LAWSUIT CALIFORNIA IS ALSO ONE OF THE ONLY STATES IN THE COUNTRY TO BUY ADVERTISEMENTS ON POPULAR TELEVISION SHOWS TO RUN ANTITOBACCO ADS THE PROGRAM IS FINANCED BY THE STATE CIGARETTE TAX QUOTE CALIFORNIA HAS SET A PRECEDENT THAT IS GOING TO SWEEP ACROSS THE U. S. QUOTE SAYS ANGELA ALIOTO PRESIDENT OF SAN FRANCISCO'S BOARD OF SUPERVISORS AND THE AUTHOR OF THE CITY'S ANTISMOKING LAW THE AS SLASH FOUR HUNDRED THE MIDRANGE COMPUTER ACCLAIMED AS A SIGN OF STRENGTH AT INTERNATIONAL BUSINESS MACHINES CORPORATION WHEN IT WAS INTRODUCED IN NINETEEN EIGHTY EIGHT IS NOW IN TROUBLE LIKE I. B. M.'S BIGGER MAINFRAMES THE AS SLASH FOUR HUNDRED IS GETTING UNDERCUT BY CHEAPER AND EVER MORE POWERFUL DESKTOP MACHINES FOR THE FIRST TIME SINCE THE PRODUCT WAS UNVEILED I. B. M. ALSO LOST MARKET SHARE LAST YEAR IN THE MIDRANGE SEGMENT AS RIVALS MOVED MORE QUICKLY TO MAKE THEIR MIDRANGE COMPUTERS MORE QUOTE OPEN QUOTE LETTING CUSTOMERS MIX AND MATCH VARIOUS COMPUTERS AND SOFTWARE PROGRAMS THE STEEPNESS OF THE SLIDE FIRST DISCLOSED IN I. B. M.'S YEAR END RESULTS LAST WEEK CAUGHT SOME ANALYSTS BY SURPRISE SALES OF THE AS SLASH FOUR HUNDRED WHICH HAS BEEN I. B. M.'S MOST PROFITABLE HARDWARE PRODUCT IN THESE TWILIGHT YEARS OF THE MAINFRAME DECLINED ABOUT TEN PERCENT IN NINETEEN NINETY THREE TO THREE POINT THREE BILLION DOLLARS FROM THREE POINT SEVEN BILLION DOLLARS IN NINETEEN NINETY TWO ANALYSTS FIGURE PROFITS WERE DOWN EVEN MORE SHARPLY PLUMMETING TO ONLY EIGHTY FIVE MILLION DOLLARS LAST YEAR FROM SEVEN HUNDRED EIGHTY MILLION DOLLARS IN NINETEEN NINETY TWO THEY ARE REVISING THEIR NINETEEN NINETY FOUR AS SLASH FOUR HUNDRED ESTIMATES DOWNWARD AS WELL IT'S JUST ONE MORE PIECE OF THE PIE THIS WHOLE COMPANY FACES TREMENDOUS SECULAR CHANGES IN THE WORLD AND IT IS MAKING MONEY ON THE OLD STUFF SAYS CURT ROHRMAN AN ANALYST WHO FOLLOWS I. B. M. FOR FIRST BOSTON CORPORATION FOR THE LAST TWO YEARS PEOPLE HAVE SAID THE AS SLASH FOUR HUNDRED WOULD ROLL OVER AND NOW IT IS I. B. M. ISN'T THE ONLY COMPUTER MAKER TO FACE DIFFICULTIES IN THE MIDRANGE LINE ORIGINALLY CONCEIVED AS A SMALLER LESS EXPENSIVE MAINFRAME FOR SMALL AND MEDIUM SIZED BUSINESSES SUCH MINICOMPUTERS WERE ACTUALLY THE FIRST TO FEEL THE SQUEEZE FROM LINKED UP NETWORKS OF PERSONAL COMPUTERS MIDRANGE MAKER DIGITAL EQUIPMENT CORPORATION RECENTLY SURPRISED WALL STREET WITH A NEW ROUND OF DIFFICULTIES DIGITAL AND HEWLETT PACKARD COMPANY ARE WORKING ON TRANSITIONS TO MORE OPEN SYSTEMS TO COMPETE MORE EFFECTIVELY AGAINST THE LOWER END ENTRIES BUT FOR I. B. M. THE PROBLEMS IT MUST OVERCOME TO REVIVE THE AS SLASH FOUR HUNDRED LINE MAY BE MORE INTRACTABLE AS WITH I. B. M.'S MAINFRAME LINE THE SLIPPAGE OF THE AS SLASH FOUR HUNDRED HAS CREATED A WINDOW OF OPPORTUNITY FOR COMPETITORS I. B. M. WILL NEED SOME TIME BEFORE IT CAN MAKE THE TRANSITION TO A MORE OPEN SOFTWARE SYSTEM FOR THE MIDRANGE SERIES LETTING RIVALS CAST IT AS A CLOSED PRODUCT THAT IS HARD TO INSTALL IN A MULTIBRAND ENVIRONMENT IN ADDITION I. B. M.'S EFFORTS ARE HURT BY THE RECESSION IN EUROPE WHERE I. B. M. GETS HALF OF ALL AS SLASH FOUR HUNDRED SALES ONLY THIRTY FIVE PERCENT OF SALES OCCUR IN THE U. S. WHERE THE ECONOMY IS REBOUNDING THE REST ARE GENERATED IN ASIA EVEN IF SALES IN EUROPE ARE REVIVED THE QUESTION REMAINS WHETHER CUSTOMERS WILL COME BACK TO I. B. M. OR SHOP ELSEWHERE QUOTE THE PERCEPTION IS THAT THE AS SLASH FOUR HUNDRED ISN'T A VERY OPEN SYSTEM AND EUROPE IS REALLY INTO OPENNESS QUOTE SAYS JAMES CASSELL OF GARTNER GROUP A STAMFORD CONNECTICUT CONSULTING FIRM I. B. M. ISN'T SITTING STILL YESTERDAY IT ANNOUNCED A NEW HIGH POWER MODEL IN THE AS SLASH FOUR HUNDRED SERIES THAT DELIVERS TWENTY PERCENT MORE PERFORMANCE AT ONLY A SLIGHT PRICE INCREASE AND NO CHANGE AT ALL IN COST FOR THE ACCOMPANYING SOFTWARE THAT MOVE IS EXPECTED TO PROMPT I. B. M. TO IMPOSE PRICE CUTS IN OTHER MODELS IN THE SAME PRODUCT LINE BIG BLUE ALSO WILL INTRODUCE BY THE END OF THE YEAR A NEW PRICING APPROACH THAT AMOUNTS TO ANOTHER REDUCTION IN SOFTWARE CHARGES THE NEW USAGE BASED METHOD WILL LET CUSTOMERS PAY ACCORDING TO THE NUMBER OF USERS RATHER THAN A RIGID ONE TIME CHARGE BUT I. B. M. HAS VOWED TO IMPOSE THE MOST MARKED CHANGE NEXT YEAR WHEN IT PLANS TO INTRODUCE AN AS SLASH FOUR HUNDRED MODEL RUNNING ON THE NEW POWERPC CHIP THE NEW CHIP DESIGNED BY A JOINT VENTURE OF I. B. M. MOTOROLA INCORPORATED AND APPLE COMPUTER INCORPORATED WILL PUSH THE AS SLASH FOUR HUNDRED INTO A MORE OPEN RISC DESIGN WHICH STANDS FOR REDUCED INSTRUCTION SET COMPUTING THAT WILL MAKE IT FASTER CHEAPER AND ABLE TO INTERACT WITH MORE APPLICATIONS I. B. M. IS STILL PLANNING TO KEEP THE AS SLASH FOUR HUNDRED'S OPERATING SYSTEM OUR JOB IS TO INCREASE MARKET SHARE IN THE COMING YEAR SAYS DAVID THOMAS VICE PRESIDENT AND GENERAL MANAGER OF THE AS SLASH FOUR HUNDRED DIVISION I DO THINK THE AS SLASH FOUR HUNDRED HAS A CHANCE TO SELL OTHERS ALSO BELIEVE I. B. M. CAN SOLVE THE AS SLASH FOUR HUNDRED'S PROBLEMS THE CUSTOMER BASE ITSELF IS A VALUABLE FRANCHISE OF MORE THAN FOUR HUNDRED THOUSAND INSTALLED MACHINES IT HAS PROVED ITSELF LOYAL IN THE PAST BOOSTING THE AS SLASH FOUR HUNDRED TO THE HIGHEST MARKET SHARE IN THE BUSINESS AFTER IT REPLACED AN EARLIER MODEL THIS ISN'T A SERIOUS PROBLEM FOR I. B. M. MAINTAINS DANIEL MANDRESH WHO FOLLOWS I. B. M. FOR MERRILL LYNCH AND COMPANY MR. MANDRESH ADDS THAT THE HIGH PROFIT MARGINS I. B. M. HAS ENJOYED IN THE AS SLASH FOUR HUNDRED BUSINESS LEAVE IT AMPLE ROOM TO FURTHER CUT PRICES INDEED THE AS SLASH FOUR HUNDRED HAS BEEN ADMIRED FOR ITS RELATIVELY LOW COST AND EASE OF USE BECAUSE I. B. M. PRELOADS THE OPERATING SYSTEM IT IS CONSIDERED A PLUG AND PLAY MACHINE THAT CAN PERFORM COMPLEX ACCOUNTING AND DATA SORTING TASKS IT HAS BEEN POPULAR IN SMALL BUSINESSES AND BRANCH OFFICES THAT DON'T NEED TO LINK UP WITH CENTRALIZED MAINFRAME COMPUTERS PRODUCT TRANSITIONS HOWEVER ALWAYS POSE RISK CUSTOMERS TEND TO WAIT FOR THE LATEST WARES INSTEAD OF BUYING THE OLDER ONES IN THE MEANTIME THEY SHOP AROUND TO SEE WHAT ELSE IS ON THE MARKET DIGITAL MAYNARD MASSACHUSETTS HAS SEEN ITS TOTAL SALES SLIP TWELVE PERCENT TO THREE POINT TWO FIVE BILLION DOLLARS IN THE LATEST QUARTER AS ITS MIDRANGE SERIES MADE THE SWITCH TO A NEW CHIP THE ALPHA NOW HOWEVER DIGITAL CLAIMS IT IS POISED TO STRIKE AT I. B. M.'S CUSTOMER BASE BECAUSE IT'S AHEAD OF I. B. M. IN MAKING THE TRANSITION QUOTE WE'RE TWO YEARS AHEAD OF COMPETITION QUOTE SAYS STEPHEN KOENIG A GROUP MARKETING MANAGER AT DIGITAL THE AS SLASH FOUR HUNDRED PROPRIETARY OPERATING SYSTEM IS THE NUMBER ONE CRITICISM AMONG I. B. M.'S CUSTOMERS AND WE DON'T HAVE THAT PROBLEM ANYMORE HE SAYS PETER BURRIS AN ANALYST AT INTERNATIONAL DATA CORPORATION IN BOSTON ADDS IN A PRODUCT TRANSITION YOU'RE PERCEIVED TO BE OUT OF STEP WITH THE GROOVY OPEN STUFF I'D EXPECT I. B. M. WILL LOSE SHARE AS CUSTOMERS KICK THE TIRES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY I. B. M. SHARES CLOSED AT FIFTY SIX DOLLARS AND FIFTY CENTS UNCHANGED GENEVA STEEL SAID IT COMPLETED A PUBLIC OFFERING OF ONE HUNDRED NINETY MILLION DOLLARS OF NINE AND ONE HALF PERCENT SENIOR NOTES DUE TWO THOUSAND FOUR THE COMPANY SAID NET PROCEEDS WILL BE USED TO REFINANCE ITS PRIVATELY PLACED SENIOR AND SUBORDINATED TERM DEBT AND FOR CAPITAL EXPENDITURES AND GENERAL CORPORATE PURPOSES UNDERWRITERS WERE CITICORP SECURITIES INCORPORATED AND SALOMON BROTHERS INCORPORATED GENEVA STEEL MAKES HOT ROLLED STEEL SHEET PLATE AND PIPE CENTRAL ILLINOIS PUBLIC SERVICE COMPANY SAID THE ONE THOUSAND EMPLOYEES REPRESENTED BY THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL SEVEN HUNDRED TWO RATIFIED A NEW LABOR CONTRACT THE CONTRACT REPLACES A PACT THAT EXPIRED JUNE THIRTIETH NINETEEN NINETY TWO AT ONE POINT DURING THE NEGOTIATIONS THE UTILITY LOCKED OUT UNION MEMBERS AND CONTINUED TO OPERATE WITH ITS SALARIED STAFF THE MOVE TRIGGERED A COMPLAINT BY THE NATIONAL LABOR RELATIONS BOARD WHICH IS EXPECTED TO HOLD HEARINGS ON THE MATTER THIS YEAR THE NEW CONTRACT EXPIRES JUNE THIRTIETH NINETEEN NINETY FIVE PRIDE PETROLEUM SERVICES INCORPORATED SAID IT COMPLETED THE ACQUISITION OF HYDRODRIL ARGENTINA S. A. TERMS WEREN'T DISCLOSED THE ACQUISITION WAS COMPLETED THROUGH PRIDE'S PRIDE INTERNATIONAL LIMITED UNIT HYDRODRIL OWNS AND OPERATES FOUR LAND BASED WELL SERVICING RIGS IN SOUTHERN ARGENTINA PRIDE PROVIDES WELL SERVICING AND CONTRACT DRILLING SERVICES DOMINION TEXTILE INCORPORATED SAID ITS SPECIALTY YARNS DIVISION WILL CLOSE A SPINNING PLANT IN SHERBROOKE QUEBEC AND A DYEING PLANT IN MONTREAL RESULTING IN THREE HUNDRED EIGHTY LAYOFFS THE TEXTILES MAKER SAID IT WILL INVEST FIVE MILLION CANADIAN DOLLARS THREE POINT EIGHT MILLION U. S. DOLLARS THIS YEAR TO MODERNIZE ITS OTHER YARN MILL IN SHERBROOKE B. J. SERVICES COMPANY SAID IT SIGNED A THREE YEAR AGREEMENT WITH CONOCO INCORPORATED TO PROVIDE SERVICES TO ALL OF CONOCO'S U. S. ONSHORE DRILLING OPERATIONS AND FIFTY PERCENT OF ITS OFFSHORE DRILLING OPERATIONS IN THE PAST A SPOKESMAN FOR B. J. SERVICES SAID THE COMPANY HAD PROVIDED THIRTY PERCENT OF THE OIL FIELD PRESSURE PUMPING SERVICES NEEDED BY CONOCO A UNIT OF DUPONT COMPANY THE VALUE OF THE CONTRACT WILL DEPEND ON THE AMOUNT OF DRILLING CONOCO DOES THE SPOKESMAN SAID CONOCO PAID TWENTY MILLION DOLLARS FOR PRESSURE PUMPING SERVICES IN NINETEEN NINETY THREE CRSS INCORPORATED SAID IT BOUGHT BACK A NINETEEN PERCENT STAKE IN ONE OF ITS UNITS FOR SEVENTEEN MILLION DOLLARS PARIBAS NORTH AMERICA INCORPORATED A UNIT OF THE FRENCH BANQUE PARIBAS HAD HELD THE INTEREST IN CRSS'S INDEPENDENT POWER SUBSIDIARY CRSS CAPITAL INCORPORATED SINCE JUNE NINETEEN EIGHTY NINE CRSS NOW OWNS ONE HUNDRED PERCENT OF THE UNIT CRSS A DESIGN AND CONSTRUCTION COMPANY SAID CRSS CAPITAL CONTRIBUTED MORE THAN SEVENTEEN MILLION DOLLARS TO CRSS'S FISCAL NINETEEN NINETY THREE CONSOLIDATED OPERATING PROFIT AND IS EXPECTED TO CONTRIBUTE SIGNIFICANTLY TO EARNINGS IN THE CURRENT FISCAL YEAR WHICH ENDS JUNE THIRTIETH MESA AIRLINES SAID ITS DECEMBER NINETEEN NINETY THREE TRAFFIC ROSE ZERO POINT THREE PERCENT TO SEVENTY SIX MILLION REVENUE PASSENGER MILES FROM THE YEAR EARLIER PERIOD'S SEVENTY FIVE POINT EIGHT MILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE DECEMBER'S LOAD FACTOR OR PERCENTAGE OF SEATS FILLED WAS FORTY NINE PERCENT DOWN FROM A YEAR EARLIER FIFTY ONE PERCENT THE COMPANY SAID FULL YEAR NINETEEN NINETY THREE TRAFFIC ROSE FORTY ONE PERCENT TO NINE HUNDRED TWENTY EIGHT POINT SEVEN MILLION REVENUE PASSENGER MILES FROM SIX HUNDRED FIFTY SIX POINT EIGHT MILLION LOAD FACTOR IN BOTH YEARS WAS FIFTY PERCENT THE PALESTINIAN ECONOMY HAS LACKED ANY COMPREHENSIVE BANKING SERVICES SINCE ISRAEL CAPTURED THE WEST BANK AND GAZA STRIP IN THE NINETEEN SIXTY SEVEN WAR NOW ISRAELI JORDANIAN AND PALESTINIAN BANKS ARE FIGHTING TO BE THE FIRST TO OPEN THEIR DOORS DURING THE COMING PERIOD OF PALESTINIAN SELF RULE ESTABLISHING A STRONG BANKING SYSTEM HAS LONG BEEN VIEWED AS A KEY TO DEVELOPING THE PALESTINIAN ECONOMY BUT THE BANKS AREN'T BATTLING OVER WHICH OF THEM GETS TO PROVIDE FINANCIAL SERVICES TO THE PALESTINIANS WHO UP UNTIL NOW HAVE KEPT THEIR SAVINGS AT HOME AND RELIED ON THE LOCAL MONEY CHANGER FOR ANY BANKING NEEDS INSTEAD WHAT IS DRIVING THE COMPETITION IS THE PROSPECT OF MILLIONS OF DOLLARS IN LUCRATIVE COMMISSIONS AND RELATED BUSINESS ARISING OUT OF THE TRANSFER AND DISTRIBUTION OF THE TWO BILLION DOLLARS IN AID PLEDGED OVER THE NEXT FIVE YEARS BY WESTERN NATIONS TO HELP THE PALESTINE LIBERATION ORGANIZATION SET UP A SELF RULING AUTHORITY QUOTE BANKS QUOTE SAYS ONE PALESTINIAN ECONOMIST QUOTE ARE GOING TO BE A PROFITABLE BUSINESS QUOTE IDEALLY THE PALESTINIANS WOULD LIKE TO KEEP THE PROFITS FOR THEMSELVES AID COMING TO THE WEST BANK SHOULD BE IN PALESTINIAN HANDS ONLY AND DISTRIBUTED THROUGH PALESTINIAN INSTITUTIONS SAYS KHALED SHAIR CHIEF EXECUTIVE OFFICER AND GENERAL MANAGER OF THE COMMERCIAL BANK OF PALESTINE WHICH IS SET TO BE THE FIRST PALESTINIAN BANK WHEN IT OPENS ITS DOORS IN RAM ALLAH THIS MONTH IT HAS RECEIVED P. L. O. APPROVAL TO ACT AS A CONDUIT OF FOREIGN AID BUT THE PALESTINIANS ARE INCREASINGLY WORRIED BY JORDAN'S EAGERNESS TO REOPEN ITS BANKS EIGHT JORDANIAN BANKS WITH A TOTAL OF THIRTY ONE BRANCHES OPERATED IN THE WEST BANK BEFORE NINETEEN SIXTY SEVEN AND THE JORDANIAN CENTRAL BANK HAS ALREADY GIVEN APPROVAL TO FIVE OF THEM TO REOPEN SOME OF THEIR BRANCHES CURRENTLY ALL BANKS WISHING TO OPERATE IN THE WEST BANK MUST ALSO BE APPROVED BY THE ISRAELI CENTRAL BANK THE P. L. O. AND JORDAN MAY SPEAK OF ENJOYING A BROTHERLY RELATIONSHIP AS REFLECTED BY THE SIGNING LAST MONTH OF AN ECONOMIC COOPERATION AGREEMENT BUT PRIVATELY MANY PALESTINIAN BANKERS ARE AFRAID THAT THE JORDANIAN BANKS ARE GOING TO OVERPOWER US SAYS THE ECONOMIST SO IN WHAT SURELY MUST BE ONE OF THE ODDEST ECONOMIC ALLIANCES TO ARISE OUT OF THE ISRAEL P. L. O. PEACE ACCORD THE P. L. O. HAS TURNED TO THE ISRAELIS AS A KIND OF INSURANCE POLICY AGAINST THE IMPENDING JORDANIAN BANKING INVASION IT HAS GIVEN THE GO AHEAD TO A GROUP OF PALESTINIAN BUSINESSMEN TO SET UP A NEW COMMERCIAL BANK IN THE OCCUPIED TERRITORIES IN PARTNERSHIP WITH BANK LEUMI AN ISRAELI BANK CLOSELY ASSOCIATED THROUGHOUT ITS HISTORY WITH THE ZIONIST MOVEMENT THE BANK TO BE CALLED THE INTERNATIONAL PALESTINIAN BANK OR IPB WILL BE JOINTLY OWNED BY THE PALESTINIAN INVESTORS WHO ARE IN THE PROCESS OF REGISTERING AS A COMPANY TO BE BASED IN RAM ALLAH BANK LEUMI BANQUE COMMERCIALE DU MAROC OF MOROCCO AND BANCO CENTRAL HISPANO OF SPAIN EACH GROUP WILL INVEST TEN MILLION DOLLARS AND NOMINATE THREE MEMBERS TO THE BOARD OF DIRECTORS OF THE NEW ENTERPRISE WHICH WILL BE MANAGED BY A QUALIFIED BANKER OF ARAB ORIGIN ACCORDING TO MOSHE SANBAR CHAIRMAN OF BANK LEUMI MR. SANBAR SAYS THE AGREEMENT WHICH HAS BEEN FORMALLY SIGNED BY ALL OF THE PARTIES EXCEPT THE PALESTINIAN INVESTMENT GROUP IS BASED ON THE PREMISE THAT ALL POLITICS WILL BE KEPT OUT OF THE BANK VAULT THE COMBINATION OF PARTNERS MAKES THE BANK IDEALLY POSITIONED TO WIN A LARGE CHUNK OF BUSINESS FROM FOREIGN INVESTORS AND DONORS SAYS MR. SANBAR BANK LEUMI WILL TURN OVER THE TWO BRANCHES IT CURRENTLY OPERATES IN THE WEST BANK TO IPB AS WELL AS A SOPHISTICATED COMPUTER SYSTEM BANCO CENTRAL HISPANO HAS IMPORTANT TIES IN EUROPE BANQUE COMMERCIALE DU MAROC IN THE ARAB WORLD AND THE PALESTINIAN PARTNERS WITH THE P. L. O. SINCE THE PALESTINIANS PROFESS TO FEAR ISRAELI INTENTIONS TOWARD THEIR FRAGILE ECONOMY AS MUCH AS THEY DO THOSE OF THE JORDANIANS WHY GO TO THE ISRAELIS INSTEAD OF FORMING AN ALLIANCE WITH ONE OF THE JORDANIAN BANKS WE HAVE LEARNED NOT TO PUT ALL OUR EGGS IN ONE BASKET SAYS HANNA S. SINIORA A PALESTINIAN BUSINESSMAN IN JERUSALEM WHO IS CONSIDERING INVESTING IN IPB ONE ISRAELI BANKING OFFICIAL SAYS THE PALESTINIANS' ECONOMIC PRAGMATISM ALSO STEMS FROM A DESIRE TO ENSURE THAT THERE ARE NO DELAYS IN THE ARRIVAL OF AID PLEDGED BY THE DONORS QUOTE CULTURALLY AND LANGUAGEWISE THE PALESTINIANS WOULD BE MORE COMFORTABLE WITH JORDANIAN BANKS AS PARTNERS QUOTE HE SAYS BUT THEY THINK THE WESTERN DONORS WOULD BE MORE COMFORTABLE WITH US ALDUS CORPORATION'S STOCK SLUMPED FIFTEEN PERCENT AFTER THE SOFTWARE PUBLISHER'S FOURTH QUARTER GROSS PROFIT MARGINS FAILED TO MATCH STRONG THIRD QUARTER MARGINS ALDUS POSTED PROFIT OF FOUR POINT SEVEN MILLION DOLLARS OR THIRTY FOUR CENTS A SHARE FOR THE FOURTH QUARTER MORE THAN DOUBLE THE ONE POINT NINE MILLION DOLLARS OR FOURTEEN CENTS A SHARE EARNED A YEAR EARLIER THE LATEST EARNINGS WHICH INCLUDED A RESTRUCTURING CHARGE OF THREE CENTS A SHARE WERE TWO CENTS BELOW ANALYSTS' MEAN EXPECTATIONS REVENUE FOR THE SEATTLE COMPANY'S FOURTH QUARTER WAS UP TWENTY FIVE PERCENT TO FIFTY SEVEN POINT FOUR MILLION DOLLARS FROM FORTY FIVE POINT NINE MILLION DOLLARS A YEAR AGO THE BIG LETDOWN ANALYSTS SAID WAS ALDUS'S FOURTH QUARTER MARGIN WHICH FELL TO SEVENTY NINE PERCENT FROM EIGHTY TWO PERCENT IN THE THIRD QUARTER ALDUS OFFICIALS SAID THE COMPANY'S THIRD QUARTER GROSS MARGINS WERE UNUSUALLY STRONG BECAUSE OF HEAVY SHIPMENTS OF HIGH MARGIN UPGRADES FOR ALDUS'S PAGEMAKER PUBLISHING SOFTWARE IN TRADING ON THE NASDAQ STOCK MARKET ALDUS CLOSED AT TWENTY TWO DOLLARS AND TWENTY FIVE CENTS A SHARE DOWN FOUR DOLLARS A HEALTHY RISE IN ORDERS HELPED THE MANUFACTURING SECTOR EXPAND AGAIN IN JANUARY ACCORDING TO A SURVEY OF PURCHASING MANAGERS BUT THE GROWTH BROUGHT ALONG NEW HINTS OF INFLATION THE REPORT FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT INDICATED THAT MANUFACTURERS GAINED GROUND FOR THE FIFTH STRAIGHT MONTH AND THAT THE ECONOMY IS PICKING UP MOMENTUM THE PURCHASING MANAGERS' INDEX ROSE TO FIFTY SEVEN POINT SEVEN PERCENT IN JANUARY FROM DECEMBER'S REVISED FIFTY SEVEN POINT ONE PERCENT AND CLIMBED BACK TO PRERECESSION LEVELS THE REPORT SAID A READING OVER FIFTY PERCENT GENERALLY MEANS THE MANUFACTURING SECTOR IS GROWING THE INDEX FOR NEW ORDERS ROSE TO SIXTY SIX POINT TWO PERCENT FROM SIXTY FIVE PERCENT REACHING THE HIGHEST LEVEL IN TEN YEARS THE REPORT ALSO SAID NEW EXPORT ORDERS ROSE TO THEIR HIGHEST POINT IN MORE THAN TWO YEARS HOWEVER THE REPORT RECORDED A LARGE AND UNEXPECTED INCREASE IN PRICES THE INDEX'S PRICE COMPONENT JUMPED TO FIFTY NINE POINT EIGHT PERCENT FROM FIFTY ONE POINT THREE PERCENT IN DECEMBER ALTHOUGH A READING OVER FORTY SEVEN PERCENT GENERALLY MEANS THAT PRICES FOR MANUFACTURERS ARE RISING ANALYSTS SAID THE JANUARY INCREASE SHOULDN'T CAUSE ALARM IN DECEMBER CONSUMER AND WHOLESALE PRICES WERE BOTH WELL RESTRAINED QUOTE WE SHOULDN'T BLITHELY IGNORE IT BUT WE SHOULDN'T PANIC INFLATION IS HERE EITHER QUOTE SAID SAMUEL KAHAN CHIEF ECONOMIST AT FUJI SECURITIES IN CHICAGO FINANCIAL MARKETS REACTED NEGATIVELY TO THE REPORT BOND PRICES PLUNGED WHICH HELPED PUSH STOCKS LOWER THE DOW JONES INDUSTRIAL AVERAGE SANK FOURTEEN POINT THREE FIVE POINTS TO THREE THOUSAND NINE HUNDRED SIXTY FOUR POINT OH ONE PRICE INCREASES WERE CONFINED MOSTLY TO STEEL GRAIN CHLORINE AND LUMBER ROBERT BRETZ WHO HEADS THE SURVEY AND IS DIRECTOR OF CORPORATE PURCHASING FOR PITNEY BOWES INCORPORATED DIDN'T BELIEVE THE INCREASES INDICATE AN INFLATIONARY TREND HE EXPLAINED THAT STEEL WENT UP BECAUSE OF TRADE RESTRICTIONS GRAIN WENT UP BECAUSE OF THE MIDWEST FLOODS AND LUMBER WENT UP BECAUSE OF THE FLOOD INDUCED CONSTRUCTION BOOM REDUCED CUTTING IN THE NORTHWEST AND THE WINTER CLOSING OF NORTHERN MILLS THE REPORT INDICATED BACKLOGGED ORDERS AND SUPPLIER DELIVERIES WERE UP WHILE INVENTORIES AND UNEMPLOYMENT WERE DOWN IN A CONTINUING TREND SUGGESTING DEMAND EXCEEDED SUPPLY MANUFACTURERS HAVE BEEN CAUTIOUS IN HIRING BUT STRONG DEMAND WILL LIKELY LEAD TO FURTHER HIRING INCREASES SAID CHARLES LIEBERMAN MANAGING DIRECTOR OF CHEMICAL SECURITIES INCORPORATED IN NEW YORK SEPARATELY THE COMMERCE DEPARTMENT REPORTED NEW CONSTRUCTION SPENDING FOR DECEMBER ROSE TWO POINT ONE PERCENT FOLLOWING REVISED INCREASES OF ONE POINT SIX PERCENT IN NOVEMBER AND TWO POINT ONE PERCENT IN OCTOBER IT WAS THE SIXTH CONSECUTIVE MONTH OF INCREASES FOR ALL OF NINETEEN NINETY THREE TOTAL NEW CONSTRUCTION SPENDING INCREASED EIGHT PERCENT SPENDING ROSE SIX PERCENT ON RESIDENTIAL CONSTRUCTION AND JUMPED THIRTEEN PERCENT ON SINGLE FAMILY HOMES COMMERCIAL CONSTRUCTION SPENDING GREW TWELVE PERCENT WHILE PUBLIC CONSTRUCTION SPENDING GREW THIRTEEN PERCENT LAST YEAR THE STRONGEST GAINS IN DECEMBER WERE POSTED FOR PUBLIC AND COMMERCIAL CONSTRUCTION AND SINGLE FAMILY HOME BUILDING CONTINUED TO RISE MICHAEL CARLINER AN ECONOMIST WITH THE NATIONAL ASSOCIATION OF HOME BUILDERS SAID COMMERCIAL CONSTRUCTION HAS FINALLY TURNED AROUND AND ALTHOUGH THERE WAS NO RECOVERY IN MULTIFAMILY HOUSING RECENT BUILDING PERMITS INDICATE THIS SHOULD IMPROVE IN THE NEXT FEW MONTHS ALL FIGURES ADJUSTED FOR INFLATION AND NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES JASON SIMON IS AN ART CURATOR OBSESSED WITH GAMBLING HE'S FASCINATED BY POOL BLACKJACK AND POKER SEVEN CARD STUD HI LO AND TEXAS HOLD 'EM ARE THE NAMES OF HIS GAMES HE CAN TELL YOU WHO INVENTED THE ROULETTE WHEEL IT LIKELY WAS BLAISE PASCAL THE SEVENTEENTH CENTURY PHILOSOPHER WHO MADE A NOTORIOUS WAGER BACKING RELIGIOUS FAITH OVER ATHEISM NOTHING TO LOSE EVERYTHING TO GAIN AND INSISTS THAT PREHISTORIC MAN SAT IN CAVES THROWING BONES IN AN ALLEY OOP VERSION OF CRAPS SO EARNEST AND INFECTIOUS IS MR. SIMON'S BELIEF IN THE BEAUTY OF PLAY THAT HE HAS MANAGED TO CONVINCE THE OWNERS OF A MEDIUM TO HIGH STAKES POKER CLUB IN MANHATTAN TO LET HIM CURATE AN ART SHOW THERE THE MAYFAIR CLUB IS AS UNLIKELY A SPOT FOR A CONTEMPORARY ART EXHIBIT AS CAN BE FOUND IN NEW YORK CITY BILLING ITSELF AS A QUOTE MEMBERSHIP BASED ESTABLISHMENT SPECIALIZING IN CARDS QUOTE IT'S THE KIND OF PLACE YOU WOULD EXPECT TO BE ILLEGAL AND UNDERGROUND IT ISN'T PLAYERS PAY ONE HUNDRED DOLLARS A YEAR TO JOIN AND A NIGHTLY FEE SEVEN DAYS A WEEK AND AS LATE AS DAWN TO GET INTO THE ACTION THE FEE DEPENDS ON THE STAKES OF THE GAME AND IT CAN COST AS MUCH AS TEN THOUSAND DOLLARS TO ANTE UP THE HOUSE TAKES NO PART OF THE GAMBLING HANDLE THERE'S NO ALCOHOL SOLD ON THE PREMISES AND NO CASH ON THE TABLES THE CLUB IS CLEAN AND WELL LIGHTED AND EVEN ADVERTISES IN THIS NEWSPAPER NOW IT HAS OPENED ITS DOORS TO ART ENTHUSIASTS HOSTING JASON SIMON'S MAYFAIR SHOW WHICH IS NOT FOR MEMBERS ONLY THE SHOW FEATURING ART WITH GAMBLING RELATED THEMES IS OPEN TO THE PUBLIC FROM SEVEN P.M.TO FOUR A. M. EVERY DAY THROUGH FEBRUARY TWELFTH WITH SOME OF THE ART ON VIEW DURING MORE NORMAL HOURS AT THE AMERICAN FINE ARTS COMPANY GALLERY IN SOHO TWENTY TWO WOOSTER STREET THE BULK OF THE MAYFAIR SHOW CONSISTING OF PAINTINGS PRINTS PHOTOGRAPHS AND DRAWINGS IS DISPLAYED THROUGHOUT THE POKER CLUB'S THREE GAMING ROOMS AND THE LOUNGE IN ITS HEADQUARTERS AT FIFTY ONE E. TWENTY FIFTH SAINT MAYFAIR MEMBERS HAVE TAKEN THIS IN THEIR STRIDE PLAYERS BARELY LOOK UP FROM THEIR CARDS WHEN ART MAVENS COME TO GAWK AT PICTURES OR AT THE TABLES IT'S PECULIAR VIEWING ART IN A ROOM IN WHICH DOZENS OF PEOPLE ARE INTENTLY FOCUSED ON A GAME OF CHANCE CLICKING THEIR CHIPS AND COMMUNICATING IN A VIRTUAL SECRET LANGUAGE WHILE THE PLAYERS MURMUR ABOUT FLOPS AND THE TURN AND THE RIVER THE MAYFAIR STAFF NOISELESSLY SERVES THEM PLATES OF FOOD ON TABLESIDE TRAYS OR DELIVERS COFFEE OR CIGARETTES IN THAT ENVIRONMENT THE ART IS NOT THE FIRST THING THAT STRIKES YOU MR. SIMON HIMSELF ADMITS IT'S A SOTTO VOCE PRESENCE MR. SIMON WHO ATTENDED THE WHITNEY MUSEUM'S INDEPENDENT STUDY PROGRAM AND TEACHES AT SARAH LAWRENCE COLLEGE IS WELL VERSED IN PSYCHOANALYTIC AND SOCIOLOGICAL THEORIES OF GAMBLING HE HAS ROUNDED UP ARTWORK THAT ILLUSTRATES WHAT HE SEES AS THE SHARED CONCERNS OF ARTISTS AND GAMBLERS THE MOST OBVIOUS BEING THEIR EXISTENCE OUTSIDE MAINSTREAM SOCIETY AND THE EVER PRESENT POSSIBILITY OF FINANCIAL RUIN MR. SIMON EVEN IS INTERESTED IN THE FUNCTION OF GAMBLING CLUBS AND CASINOS AS SMALL PRIVATE ECONOMIES A NOTION BASED ON ROBERT REICH'S WRITINGS THE MAYFAIR SHOW INCLUDES BLACK AND WHITE SILKSCREEN PRINTS BY ASHLEY BICKERTON WHICH INCORPORATE GOOD AND EVIL IMAGES RESEMBLING PLAYING CARD SUITS PAINTINGS BY DAVID SMITH WHO USES METHODS OF SHUFFLING IMAGES TO DETERMINE THE DESIGN OF HIS WORK AND PAINTINGS BY THE AUSTRIAN HANS WEIGAND HIMSELF A PLAYER OF HIGH STAKES BLACKJACK ALSO IN THE SHOW ARE A PAINTING BY ADAM SIMON ON A PAGE FROM THE DAILY RACING FORM AND MOYRA DAVEY'S HUGE PHOTOGRAPHS OF DETAILS FROM FIFTY DOLLARS AND ONE HUNDRED DOLLAR BILLS AN EXHIBITION CATALOGUE FEATURES THE TRANSCRIPT OF A DIALOGUE BETWEEN A PSYCHOANALYST AND A GAMBLER ON THE SUBJECT OF BLUFFING TO COMPLETE THE CIRCUIT BY EXHIBITING THE GAMBLING WORLD IN THE BOSOM OF THE ART WORLD MR. SIMON HAS INSTALLED THE WORK OF MAYFAIR CLUB MEMBER MELISSA HAYDEN AT AMERICAN FINE ARTS MS. HAYDEN IS A PHOTOGRAPHER WHO BECAME A COMPETITIVE CARD PLAYER IN THE COURSE OF TAKING A SERIES OF PICTURES OF PROFESSIONAL POKER CHAMPIONS HER SUBJECTS INCLUDE POKER LEGENDS DOYLE BRUNSON TWO TIME WINNER OF THE WORLD SERIES OF POKER HELD EACH YEAR IN LAS VEGAS WITH THE WINNER TAKING A POT OF ABOUT ONE MILLION DOLLARS AND AUTHOR OF QUOTE THE SUPER SYSTEM OF POKER QUOTE THE BIBLE OF TEXAS HOLD 'EM AND SAILOR ROBERTS ANOTHER WORLD SERIES WINNER MS. HAYDEN ALSO HAS CREATED AN INSTALLATION OF ONE HUNDRED TWENTY POLAROID PHOTOS SHOWING SHE SAYS THE WAY LIFE IMITATES POKER AND POKER IMITATES LIFE FOR ALL THE HIFALUTIN THEORY BEHIND THE MAYFAIR SHOW IT SPRANG FROM A SIMPLE IMPULSE OF AESTHETIC GENEROSITY A DESIRE TO GIVE MAYFAIR MEMBERS SOMETHING PLEASANT TO LOOK AT IN THE ROOMS WHERE THEY SPEND SO MUCH TIME WHEN MR. SIMON BEGAN HANGING AROUND THE MAYFAIR ABOUT TWO YEARS AGO PLAYING IN THE BABY HOLD 'EM GAMES HE NOTICED THAT THE CLUB'S WALLS WERE UNADORNED THE FIRST THING YOU WERE STRUCK WITH WAS THIS IS A BARREN CLINICAL ENVIRONMENT IT'S NOT A KIND SPACE SAYS MR. SIMON AS A CURATOR I THOUGHT I COULD MAKE IT A LITTLE MORE HOSPITABLE TO THE PEOPLE WHO STOOD TO LOSE HUGE AMOUNTS OF MONEY THERE SO HE APPROACHED CLUB OWNERS FRANK AND MARY LOU KAVALER SHE'S A RETIRED ART TEACHER ABOUT HANGING A SHOW THERE AND THEY LIKED THE IDEA QUOTE WE HAVE TROUBLE COVERING THE WALLS QUOTE MR. KAVALER SAYS AND THESE PEOPLE SHOULD BE EXPOSED TO OTHER THINGS MR. KAVALER'S HOPES OF AWAKENING A LOVE OF CONTEMPORARY ART IN THE MAYFAIR MEMBERS SEEM UNLIKELY TO BE REALIZED HOWEVER WHEN ASKED WHAT THEY THINK ABOUT THE ART THEIR RESPONSE IS LARGELY NEGATIVE A DISCLAIMER HAS BEEN POSTED NEXT TO ONE OF THE ASHLEY BICKERTONS EVER SINCE SOME MEMBERS TOOK OFFENSE AT SWASTIKA IMAGES IN THE PRINT BUT THE REACTION OF MAYFAIR CLUB MEMBER KENNY ENGELS MAY BE MORE TYPICAL OF THE PLAYERS WHOSE GAMES AFTER ALL DEMAND UNDIVIDED CONCENTRATION I THINK THE ART IS COOL MR. ENGELS SAYS BUT I HAVE TO ADMIT I DIDN'T EVEN NOTICE IT UNTIL IT HAD BEEN UP FOR TWO WEEKS MS. WOODS IS A COPY EDITOR AT DOW JONES NEWS SERVICE IN NEW YORK A CORRECTION HERE AND THERE TUESDAY SLOWED BUT DIDN'T REVERSE THE GLOBAL BULL RUN IN STOCKS TYPIFYING ACTIVITY ON ASIAN EXCHANGES TOKYO SHARES SCORED SOLID GAINS IN EXTREMELY HEAVY VOLUME BUOYED BY CONTINUED BUYING BY FOREIGN INVESTORS PRICES ON MOST EUROPEAN BOURSES ENDED MIXED AS DID LONDON WHERE INVESTORS SNAGGED PROFITS AMONG BLUE CHIPS FOLLOWING THE PREVIOUS DAY'S RALLY WHILE THE BROADER MARKET CHALKED UP GAINS WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED NINETEEN POINT OH ONE UP ZERO POINT FOUR ONE REFLECTING HIGHER ASIA SLASH PACIFIC MARKETS AND LOWER AMERICAN AND EUROPEAN MARKETS HEAVY MACHINERY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED THIRTY ONE POINT OH THREE UP FOUR POINT THREE NINE OR THREE POINT FIVE PERCENT WITH HITACHI CONSTRUCTION MACHINERY OF JAPAN POSTING AN EIGHTEEN PERCENT GAIN IN ITS LOCAL CURRENCY TOYS STOCKS TRAILED AT EIGHTY SEVEN POINT FOUR EIGHT DOWN TWO POINT FOUR FOUR OR TWO POINT SEVEN PERCENT WITH ELECTRONIC ARTS OF THE U. S. SLIDING SIX POINT ONE PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH SOARED ONE THOUSAND FOUR HUNDRED SEVENTY ONE POINT TWO FOUR POINTS OR SEVEN POINT EIGHT PERCENT ON MONDAY CLIMBED ONE HUNDRED EIGHTY SEVEN POINT TWO TWO TO TWENTY THOUSAND FOUR HUNDRED SIXTEEN POINT THREE FOUR IN TRADING WEDNESDAY THE NIKKEI FELL TWO HUNDRED FIFTY SIX POINT ONE TWO POINTS TO CLOSE THE MORNING SESSION AT TWENTY THOUSAND ONE HUNDRED SIXTY POINT TWO TWO TUESDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT NINE HUNDRED FIFTY MILLION SHARES THE HIGHEST LEVEL IN TEN MONTHS AND UP FROM EIGHT HUNDRED THIRTY NINE POINT FOUR MILLION SHARES A DAY EARLIER GAINERS CLOBBERED LOSERS SIX HUNDRED SEVENTY SEVEN TO THREE HUNDRED FORTY SEVEN THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH SWELLED ONE HUNDRED ONE POINT FOUR OH POINTS MONDAY ADVANCED THIRTEEN POINT EIGHT EIGHT TO ONE THOUSAND SIX HUNDRED FORTY THREE POINT ONE OH PARTICIPANTS WERE SURPRISED BY THE STRONG TURNOVER OVERSEAS INVESTORS SOME OF WHOM MISSED OUT ON MONDAY'S RUNUP GENERALLY BOUGHT SHARES AND INDIVIDUALS RETURNED TO JUMP ONTO THE BUYING BANDWAGON WHILE JAPANESE CORPORATE AND INSTITUTIONAL INVESTORS SOLD POSITIONS TAKING PROFITS AHEAD OF THE MARCH THIRTY FIRST FISCAL YEAR END THE SUSTAINED UPTURN WAS A RESULT OF JAPANESE PARLIAMENTARY PASSAGE LAST WEEKEND OF POLITICAL REFORM BILLS WHICH FREED POLITICIANS TO FOCUS ONCE AGAIN ON MEASURES TO PERK UP THE SAGGING ECONOMY WHICH COULD BE UNVEILED THURSDAY THE BEST PERFORMERS IN THE TOKYO SESSION WERE IN THE COMMUNICATIONS AND BROKERAGE FIRM SECTORS COMMUNICATIONS SHARES GAINED ON EXPECTATIONS THAT THE JAPANESE GOVERNMENT WILL INVEST MORE IN SOCIAL INFRASTRUCTURE SUCH AS COMPUTERS AND TELECOMMUNICATIONS WHILE THE BROKERAGE SHARES ROSE ON HOPES FOR CONTINUED HEAVY TRADING ACTIVITY THAT WILL BOLSTER THEIR EARNINGS IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX FELL TEN POINT THREE POINTS TO THREE THOUSAND FOUR HUNDRED EIGHTY ONE POINT FIVE THE F. T. THIRTY STOCK INDEX EDGED DOWN ZERO POINT FOUR POINT TO TWO THOUSAND SIX HUNDRED SEVENTY SIX POINT NINE VOLUME WAS A HEAVY ONE POINT OH EIGHT BILLION SHARES COMPARED WITH NINE HUNDRED EIGHTY NINE POINT TWO MILLION SHARES A DAY EARLIER DESPITE THE F. T. ONE HUNDRED'S DECLINE IT FINISHED OFF THE SESSION'S WORST LEVELS WHEN IT WAS DOWN TWENTY POINT EIGHT POINTS BLUE CHIPS OPENED STRONGLY WITH THE MAIN INDEX SCORING A TWENTY TWO POINT GAIN BUT WITH LITTLE FRESH NEWS TO DRIVE SENTIMENT THE MOMENTUM FALTERED LATER PROFIT TAKING EARLY ON WALL STREET AND ON SOME EUROPEAN BOURSES ALSO PRESSURED LONDON BLUE CHIPS YET THE F. T. S. E. TWO HUNDRED FIFTY INDEX ADVANCED TWENTY ONE POINT ONE POINTS TO FOUR THOUSAND ONE HUNDRED FIVE POINT FOUR SHOWING THAT UNDERLYING DEMAND FOR EQUITIES REMAINED INTACT AND THAT THE DECLINE IN THE BENCHMARK ONE HUNDRED STOCK INDEX WAS A TECHNICAL CORRECTION TO MONDAY'S FORTY FOUR POINT FOUR POINT GAIN IN FRANKFURT STOCK PRICES CLOSED MIXED TO SLIGHTLY HIGHER AFTER FAILING TO HOLD ON TO EARLY GAINS FOLLOWING THE PREVIOUS DAY'S TWO POINT ONE PERCENT SURGE THE D. A. X. THIRTY STOCK INDEX ROSE TWO POINT TWO TWO POINTS TO TWO THOUSAND ONE HUNDRED SEVENTY NINE POINT SIX SEVEN LITTLE CORPORATE NEWS SURFACED TO INFLUENCE THE MARKET WHICH TOOK CUES FROM LONDON AND NEW YORK IN PARIS PRICES FINISHED NARROWLY MIXED IN LACKLUSTER TRADING AS INVESTORS CAUGHT THEIR BREATH FOLLOWING MONDAY'S RECORD BREAKING ADVANCE IN AMSTERDAM EQUITIES ALSO ENDED MIXED WITH BLUE CHIPS WEAKER BECAUSE OF SELECTIVE PROFITTAKING A LOWER DOLLAR IN CURRENCY DEALINGS AND SOFTNESS IN SOME OTHER BIG BOURSES IN MILAN SHARES FELL AS INVESTORS COLLECTED PROFITS AND CONSOLIDATED POSITIONS FOLLOWING A SPATE OF RECORD SETTING SESSIONS IN STOCKHOLM STOCKS FELL ACROSS THE BOARD IN A CORRECTION FROM THE PREVIOUS DAY'S RECORD HIGH IN MADRID THE MARKET DROPPED SHARPLY PARTLY ON PROFIT TAKING FOLLOWING RECENT BIG GAINS AND PRIMARILY BY BANCO ESPANOL DE CREDITO ON ITS FIRST DAY OF TRADING FOLLOWING A SPANISH GOVERNMENT TAKEOVER BANESTO SHARES PLUNGED FIFTY SEVEN PERCENT TO EIGHT HUNDRED FIFTY FIVE PESETAS SIX DOLLARS AND ELEVEN CENTS AND IN ZURICH INVESTORS SNAGGED PROFITS IN SOME BLUE CHIPS SENDING THE MARKET DOWN AFTER A STRING OF STRONG SESSIONS IN MEXICO CITY STOCKS ROSE TO THEIR FOURTH RECORD HIGH IN A ROW AFTER SEESAW TRADING IN WHICH A MIDDAY ROUND OF PROFITTAKING RAN OUT OF STEAM BRAZILIAN STOCKS MEANWHILE SOARED AS INVESTORS SHOWED CONFIDENCE IN THE GOVERNMENT'S ECONOMIC PACKAGE THE SAO PAULO STOCK EXCHANGE'S BOVESPA INDEX GAINED EIGHT THOUSAND SIX HUNDRED THIRTY ONE POINTS OR ELEVEN POINT SEVEN PERCENT TO EIGHTY TWO THOUSAND SIX HUNDRED EIGHTY SIX THE RIO DE JANEIRO EXCHANGE ADDED THREE THOUSAND SEVEN HUNDRED TEN POINTS OR THIRTEEN POINT SEVEN PERCENT TO THIRTY THOUSAND SEVEN HUNDRED THIRTY FOUR BOTH EXCHANGES SAID THEY WERE THE BIGGEST INCREASES SINCE NOVEMBER NINETEEN NINETY TWO FINANCE MINISTER FERNANDO HENRIQUE CARDOSO SAID YESTERDAY THAT CONGRESSMEN HAVE ASSURED HIM THEY WOULD SUPPORT HIS ECONOMIC STABILIZATION PLAN IN SYDNEY PRICES ENDED MIXED AFTER PROFIT TAKING CAUSED SHARP DECLINES FROM AN EARLY BULL RUN IN RESPONSE TO STRENGTH IN THE PRICE OF GOLD AND IN OVERSEAS STOCK MARKETS THAT POWERED THE ALL ORDINARIES INDEX TO AN ALL TIME INTRADAY HIGH OF TWO THOUSAND THREE HUNDRED TWENTY SEVEN POINT SIX BREAKING THE TRADING RECORD OF TWO THOUSAND THREE HUNDRED TWELVE POINT FIVE SET SEPTEMBER TWENTY FIRST NINETEEN EIGHTY SEVEN THE INDEX HAS CLIMBED SIX POINT THREE PERCENT THIS YEAR IN HONG KONG SHARES RALLIED THREE PERCENT AS SENTIMENT TURNED EVEN MORE BULLISH FOLLOWING STRONG DAY EARLIER GAINS IN TOKYO LONDON AND NEW YORK STOCKS ALSO FOUND SUPPORT FROM EXPECTATIONS OF FUNDS FLOWING INTO THE HONG KONG BOURSE AHEAD OF THE CHINESE NEW YEAR CELEBRATIONS AND HOPES FOR A SINO BRITISH FINANCING AGREEMENT FOR THE COLONY'S AIRPORT PROJECT IN TAIPEI EQUITIES ADVANCED ONE PERCENT IN HEAVY TRADING EVEN AFTER PROFIT TAKING PULLED THE MARKET DOWN FROM HIGHER LEVELS FOLLOWING ITS ONE POINT SIX PERCENT JUMP THE PREVIOUS DAY CONSTRUCTION ISSUES SOARED THREE POINT SIX PERCENT LEADING WINNERS IN SEOUL STOCKS JUMPED ONE POINT FIVE PERCENT ON A POWERFUL SURGE BY LARGE BLUE CHIPS HEAVILY WEIGHTED IN THE MAIN INDEX EXPLAINING WHY DECLINING ISSUES OUTNUMBERED GAINERS FOUR HUNDRED FIFTY ONE TO THREE HUNDRED FORTY FIVE THE STOCK MARKET STABILIZATION FUND SOLD BLUE CHIPS TO SLOW THE INDEX'S RISE BUT THE INTERVENTION WAS INEFFECTIVE AND ONLY WIDENED FURTHER THE PRICE GAPS BETWEEN BIG AND SMALL STOCKS AS INSTITUTIONS UNLOADED THE INEXPENSIVE ISSUES TO BUY BIG ONES IN WELLINGTON THE MARKET RESPONDED TO POSITIVE ECONOMIC NEWS TO END HIGHER FOR THE FOURTH DAY IN A ROW POSTING A ONE POINT ONE PERCENT INCREASE IN THE MAIN INDEX THE GAINS WERE SPURRED BY A REPORT THAT NEW ZEALAND'S GROSS DOMESTIC PRODUCT EXPANDED FOUR POINT TWO PERCENT IN THE YEAR ENDED SEPTEMBER THIRTIETH AND THAT GROWTH OF TWO POINT THREE PERCENT IN THE FISCAL FOURTH QUARTER SIGNIFICANTLY EXCEEDED EXPECTATIONS FOR A ONE PERCENT RISE BUT IN MANILA SHARES SANK ONE POINT FOUR PERCENT MARKING THE THIRD STRAIGHT DECLINE ON CONTINUED SELLING FOLLOWING LAST FRIDAY'S ANNOUNCEMENT OF PRICE INCREASES FOR PETROLEUM PRODUCTS AND ELECTRICITY RATES IN BANGKOK STOCKS PLUMMETED TWO POINT FIVE PERCENT IN SLUGGISH CHOPPY TRADING 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END FIVE GROUPS LED BY FOREIGN TELEPHONE CONCERNS HAVE SAID THEY WILL TENDER BIDS FOR CONTROLLING STAKES IN TWO PHONE COMPANIES OPERATED BY THE PERUVIAN GOVERNMENT THE GOVERNMENT'S SALE OF A CONTROLLING INTEREST IN ITS WHOLLY OWNED EMPRESA NACIONAL DE TELECOMUNICACIONES DEL PERU OR ENTEL AND ITS TWENTY PERCENT OWNED COMPANIA PERUANA DE TELEFONOS OR C. P. T. IS BEING VIEWED AS A BELLWETHER OF INVESTOR INTEREST IN PERU'S RESURGENT ECONOMY ALTHOUGH PERU'S PHONE SYSTEM IS UNDERDEVELOPED EVEN BY LATIN AMERICAN STANDARDS ANALYSTS SAY THAT THE TWO PHONE COMPANIES WHICH WILL BE SOLD AS A PACKAGE COULD FETCH FROM THREE HUNDRED MILLION DOLLARS TO FIVE HUNDRED MILLION DOLLARS BIDDING WILL TAKE PLACE FEBRUARY TWENTY EIGHTH ONE OF THE GROUPS THAT HAS REGISTERED TO BID IS MADE UP OF SOUTHWESTERN BELL CORPORATION OF SAN ANTONIO KOREA TELECOM OF SEOUL SOUTH KOREA GRUPO CARSO A CONGLOMERATE FROM MEXICO CITY DAEWOO TELECOM ALSO OF SEOUL AND BANCO DE CREDITO OVERSEAS LIMITED A BAHAMAS REGISTERED CORPORATION THAT IS BELIEVED TO REPRESENT PERUVIAN INVESTORS ALSO REGISTERING IS A CONSORTIUM CONSISTING OF G. T. E. CORPORATION STAMFORD CONNECTICUT COMPANHIA PORTUGUESA RADIO MARCONI S. A. OF LISBON AND EMPRESA BRASILEIRA DE TELECOMUNICACOES OF SAO PAULO BRAZIL ANOTHER GROUP IS COMPOSED OF AMERICAN TELEPHONE AND TELEGRAPH COMPANY NEW YORK GODOY AND BARCLAY S. A. B. A PERUVIAN BROKERAGE FIRM AND MANUEL PABLO OLAECHEA ALVAREZ CALDERON A REPRESENTATIVE OF PRIVATE PERUVIAN INVESTORS ALSO REGISTERING IS A CONSORTIUM INCLUDING FRANCE TELECOM OF PARIS AND SOCIETA FINANZIARIA TELEFONICA OF TORINO ITALY THE FIFTH GROUP INCLUDES TELEFONICA DE ESPANA S. A. OF MADRID CERVECERIA BACKUS AND JOHNSTON S. A. PERU'S LARGEST BEER MAKER BANCO WIESE LIMITED PERU'S SECOND LARGEST BANK AND GRANA Y. MONTERO S. A. A PERUVIAN CONSTRUCTION CONCERN THE COMPANIES HAD UNTIL MONDAY TO REGISTER TO BID GOVERNMENT OFFICIALS HOPE THAT THE SELL OFF WILL BECOME A BREAKTHROUGH DEAL FOR A COUNTRY FINALLY OVERCOMING A LONG SLUMP BROUGHT ON BY ECONOMIC MISMANAGEMENT AND POLITICAL TURMOIL QUOTE WE THINK THIS SALE WILL MAKE MORE INVESTORS AWARE THAT THERE ARE EXCITING OPPORTUNITIES IN PERU QUOTE SAID JORGE MELO VEGA ONE OF THE OFFICIALS WORKING ON THE PRIVATIZATION LAST YEAR PERU'S ECONOMY GREW AT A STRONG RATE OF SIX POINT EIGHT PERCENT WHILE INFLATION WAS TAMED TO FORTY PERCENT FROM SEVEN THOUSAND PERCENT JUST A FEW YEARS AGO MOREOVER TERRORIST ATTACKS BY MAOIST SHINING PATH GUERRILLAS DECLINED SHARPLY AS MUCH OF THE MOVEMENT'S LEADERSHIP WAS PUT BEHIND BARS INVESTOR INTEREST IN THE PHONE PRIVATIZATION HAS BEEN REFLECTED IN THE RUN UP OF THE STOCK OF C. P. T. WHICH IS LISTED ON THE LIMA STOCK EXCHANGE C. P. T. HAS RISEN MORE THAN THIRTY PERCENT DURING THE PAST THIRTY DAYS C. P. T. WHICH PROVIDES LOCAL PHONE SERVICE TO LIMA ALSO HAS A CABLE TELEVISION LICENSE ENTEL PROVIDES LONG DISTANCE PHONE SERVICES FOR THE ENTIRE COUNTRY AS WELL AS LOCAL SERVICE OUTSIDE OF LIMA THE GOVERNMENT PLANS TO SELL TWENTY PERCENT OF ITS C. P. T. SHARES THROUGH THE PRIVATIZATION AND TO ALLOW THE NEW OWNER TO AMASS A CONTROLLING STAKE BY MAKING A FIFTEEN PERCENT INCREASE IN THE COMPANY'S CAPITAL THE GOVERNMENT WILL SELL OFF THIRTY FIVE PERCENT OF ITS ENTEL SHARES TO ENSURE THAT THE PURCHASING GROUP OBTAINS OPERATING CONTROL ENTEL'S BYLAWS PROBABLY WILL BE AMENDED TO GIVE SPECIAL VOTING RIGHTS TO THE SHARES SOLD IN THE PRIVATIZATION THE REMAINING SIXTY FIVE PERCENT OF THE GOVERNMENT'S ENTEL STOCK WILL BE PUT IN A SPECIAL TRUST AND SOLD THROUGH A SECONDARY STOCK OFFERING LATER THE CONSORTIUM THAT WINS THE BIDDING WILL HAVE A FORMIDABLE TURNAROUND JOB AHEAD OF IT LATIN AMERICA IS KNOWN FOR WRETCHED PHONE SERVICE BUT PERU HOLDS THE DUBIOUS DISTINCTION OF HAVING THE LOWEST DISTRIBUTION OF TELEPHONES IN THE REGION WITH JUST TWO POINT FIVE LINES PER ONE HUNDRED RESIDENTS PERU ALSO HAS SIX PEOPLE WAITING FOR LINES FOR EVERY TEN LINES IN SERVICE THE LARGEST BACKLOG ON THE CONTINENT THE NEW OWNER OF THE PHONE SYSTEM WILL BE REQUIRED TO ADD ONE MILLION LINES IN THE NEXT FIVE YEARS TO A SYSTEM THAT CURRENTLY HAS ONLY SIX HUNDRED THOUSAND LINES BUT THE WINNING BIDDER WILL HAVE A MONOPOLY ON NATIONAL AND LONG DISTANCE SERVICE UNTIL NINETEEN NINETY EIGHT THE PERUVIAN GOVERNMENT ALSO PLANS TO SELL THIS YEAR INTERESTS IN A HOST OF OTHER COMPANIES INCLUDING A CEMENT MAKER SOME ELECTRIC UTILITIES AND SEVERAL HOTELS IN ALL THE GOVERNMENT HOPES TO EARN THREE BILLION DOLLARS TO FOUR BILLION DOLLARS FROM THE PRIVATIZATIONS STEEP LOSSES IN THE BOND MARKET SMOTHERED A THREE DAY RALLY IN STOCKS AFTER SETTING THREE STRAIGHT HIGHS AND SURGING SEVENTY POINTS SINCE LAST WEDNESDAY THE DOW JONES INDUSTRIAL AVERAGE SLIPPED FOURTEEN POINT THREE FIVE OR ZERO POINT THREE SIX PERCENT TO THREE THOUSAND NINE HUNDRED SIXTY FOUR POINT OH ONE DECLINING ISSUES LED ADVANCERS ONE THOUSAND ONE HUNDRED FORTY EIGHT TO NINE HUNDRED SIXTY ONE ON THE NEW YORK STOCK EXCHANGE VOLUME WAS ACTIVE AT THREE HUNDRED TWENTY TWO MILLION FOUR HUNDRED FORTY THOUSAND SHARES VERSUS THREE HUNDRED TWENTY TWO MILLION SEVEN HUNDRED FIFTY THOUSAND ON MONDAY THE AVERAGE PRICE PER SHARE FELL NINE CENTS THE NASDAQ COMPOSITE INDEX WHICH TOPPED EIGHT HUNDRED YESTERDAY FOR THE FIRST TIME DECLINED THREE POINT TWO THREE OR ZERO POINT FOUR ZERO PERCENT TO SEVEN HUNDRED NINETY SEVEN POINT TWO FOUR THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX THOUGH MANAGED TO GAIN ZERO POINT THREE ONE OR ZERO POINT ZERO SIX PERCENT TO FOUR HUNDRED EIGHTY FIVE POINT NINE NINE A SECOND STRAIGHT HIGH THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX LOST ONE POINT NINE NINE OR ZERO POINT FOUR ONE PERCENT TO FOUR HUNDRED SEVENTY NINE POINT SIX TWO THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DROPPED ZERO POINT SIX SIX OR ZERO POINT TWO FIVE PERCENT TO TWO HUNDRED SIXTY SIX POINT FOUR FOUR AND THE DOW JONES EQUITY MARKET INDEX FELL ONE POINT SIX EIGHT OR ZERO POINT THREE SEVEN PERCENT TO FOUR HUNDRED FIFTY FOUR POINT TWO OH EACH HAD SET THREE CONSECUTIVE RECORDS BEFORE YESTERDAY THE MARKET'S WEAK TONE CAME EVEN AS INVESTORS RECEIVED MORE ENCOURAGING NEWS ON CORPORATE DIVIDENDS STANDARD AND POOR'S REPORTED THAT ONE HUNDRED EIGHTY FIVE COMPANIES RAISED THEIR DIVIDENDS LAST MONTH COMPARED WITH ONE HUNDRED FORTY SIX A YEAR EARLIER SIX COMPANIES LOWERED THEIR DIVIDENDS DOWN FROM NINE IN JANUARY NINETEEN NINETY THREE FIVE COMPANIES OMITTED THEIR DIVIDENDS IN JANUARY COMPARED WITH ELEVEN A YEAR EARLIER GAP SLUMPED ONE AND THREE EIGHTHS TO FORTY AND SEVEN EIGHTHS SANFORD C. BERNSTEIN AND COMPANY REDUCED ITS RATING ON THE SAN FRANCISCO APPAREL RETAILER TO QUOTE HOLD QUOTE FROM QUOTE BUY QUOTE THE BROKERAGE COMPANY SAID GAP SHARES WHICH ARE NEAR THEIR FIFTY TWO WEEK HIGH AREN'T LIKELY TO RISE SIGNIFICANTLY AT THIS TIME ALLEGHENY LUDLUM LOST ONE AND ONE HALF TO TWENTY AND THREE QUARTERS AFTER DROPPING ONE AND ONE HALF MONDAY ON DISAPPOINTING FOURTH QUARTER EARNINGS ANALYSTS HAD NEGATIVE COMMENTS YESTERDAY INCLUDING J. P. MORGAN SECURITIES WHICH LOWERED A RATING ON THE PITTSBURGH SPECIALTY STEEL COMPANY'S SHARES TO UNDERPERFORM FROM MARKET PERFORMER PARAMOUNT COMMUNICATIONS ADDED ONE QUARTER TO SEVENTY NINE AND SEVEN EIGHTHS VIACOM CLASS B. AMEX FELL ONE AND ONE EIGHTH TO THIRTY FOUR AND ONE EIGHTH AND Q. V. C. NETWORK NASDAQ ADDED THREE QUARTERS TO FORTY FOUR AND THREE QUARTERS AFTER THE MARKET CLOSED BOTH VIACOM AND Q. V. C. SWEETENED THE TERMS OF THEIR BIDS FOR PARAMOUNT AMGEN NASDAQ LOST ONE AND THREE QUARTERS TO FORTY SEVEN AMID RUMORS THAT SALES FROM ITS FLAGSHIP NEUPOGEN PRODUCT WERE LOWER THAN EXPECTED IN THE FOURTH QUARTER BUT LATE IN THE DAY THE THOUSAND OAKS CALIFORNIA COMPANY SAID QUARTERLY SALES OF THE PRODUCT ROSE SIXTEEN PERCENT TO ONE HUNDRED EIGHTY SIX POINT NINE MILLION DOLLARS LEGENT NASDAQ LOST TWO AND THREE QUARTERS TO TWENTY SEVEN IT HAD INCOME FROM OPERATIONS OF FORTY FOUR CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED DECEMBER THIRTY FIRST COMPARED WITH NET INCOME OF FIFTY FOUR CENTS A YEAR EARLIER ANALYSTS SAID THE HERNDON VIRGINIA COMPANY'S REVENUE GROWTH WAS WEAKER THAN EXPECTED IN THE QUARTER ROHM AND HAAS ADDED SEVEN EIGHTHS TO FIFTY EIGHT THE PHILADELPHIA BASED CHEMICAL MAKER SIGNED A LETTER OF INTENT TO BUY THE PYRIDINE CHEMICAL OPERATIONS OF SAINT LOUIS BASED MONSANTO TERMS WEREN'T DISCLOSED MONSANTO ROSE TWO TO SEVENTY NINE AND ONE QUARTER SAINT PAUL COMPANIES DROPPED TWO TO EIGHTY SIX AND THREE EIGHTHS EVEN THOUGH THE SAINT PAUL MINNESOTA INSURANCE COMPANY INCREASED ITS QUARTERLY DIVIDEND TO SEVENTY FIVE CENTS FROM SEVENTY CENTS EFFECTIVE WITH A PAYOUT TO BE MADE ON APRIL FIFTEENTH ITS BOARD ALSO RECOMMENDED THAT HOLDERS APPROVE A TWO FOR ONE STOCK SPLIT BOND INVESTORS WERE RATTLED BY A PAIR OF ECONOMIC READINGS ONE FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SHOWING GAINS IN MANUFACTURING CONDITIONS AND ANOTHER FROM THE COMMERCE DEPARTMENT SHOWING AN INCREASE IN DECEMBER CONSTRUCTION SPENDING IN ADDITION FEDERAL RESERVE BOARD VICE CHAIRMAN DAVID MULLINS SAID HE WILL RESIGN ONCE AGAIN THE MARKET IS SENSITIVE TO WEAKNESS IN BONDS SAID A. MARSHALL ACUFF PORTFOLIO STRATEGIST AT SMITH BARNEY SHEARSON HE SAID STOCKS THAT HAD RISEN THE MOST OF LATE WERE AMONG THE BIGGEST LOSERS THE APPROACH OF FOUR THOUSAND IN THE DOW JONES INDUSTRIALS ALSO CONTRIBUTED TO THE MARKET'S SLIDE THAT MAY BE CAUSING PEOPLE TO BACK OFF A LITTLE BIT MR. ACUFF SAID THE BUYERS BECOME LESS AGGRESSIVE AND THE SELLERS DO THEIR THING WAYNE L. STERN PRESIDENT OF THE MINNESOTA LUNG CENTER WAS ELECTED A DIRECTOR OF THIS MAKER OF PERSONAL COMPUTER BASED MULTIMEDIA PRODUCTS FOR BUSINESS COMMUNICATIONS INCREASING BOARD MEMBERSHIP TO SEVEN MARTIN SNEIDER PRESIDENT OF EDISON BROTHERS STORES INCORPORATED WAS ELECTED A DIRECTOR OF THIS UNIFORM RENTAL CONCERN MR. SNEIDER FIFTY ONE YEARS OLD FILLS A VACANCY CREATED BY THE RETIREMENT OF JAMES E. STEFOFF SIXTY FIVE WHO STEPPED DOWN AS A DIRECTOR AND EXECUTIVE VICE PRESIDENT I. C. F. KAISER INTERNATIONAL INCORPORATED SAID IT SOLD SUBSTANTIALLY ALL THE OPERATING BUSINESSES OF ITS CYGNA ENERGY SERVICES UNIT TO GENERAL PHYSICS CORPORATION OF COLUMBIA MARYLAND TERMS WEREN'T DISCLOSED CYGNA IN OAKLAND CALIFORNIA AND GENERAL PHYSICS PROVIDE ENGINEERING AND OTHER SERVICES TO THE COMMERCIAL NUCLEAR POWER INDUSTRY I. C. F. KAISER AN ENGINEERING CONSTRUCTION AND CONSULTING SERVICES COMPANY SAID IT WILL KEEP THE SUBSIDIARY'S NONNUCLEAR SEISMIC ENGINEERING BUSINESS BURLINGTON NORTHERN RAILROAD SAID IT EXPECTS ITS CAPITAL INVESTMENTS TO INCREASE TWENTY SIX PERCENT TO EIGHT HUNDRED FIFTY MILLION DOLLARS IN NINETEEN NINETY FOUR GERALD GRINSTEIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID CAPITAL SPENDING TOTALED SIX HUNDRED SEVENTY SIX MILLION DOLLARS LAST YEAR AND THE COMPANY IS SET TO PURCHASE MORE EQUIPMENT THAN EVER THIS YEAR FOR NINETEEN NINETY FOUR ABOUT FOUR HUNDRED EIGHTY FIVE MILLION DOLLARS IS EARMARKED FOR ROADWAY IMPROVEMENTS WHILE THREE HUNDRED SIXTY FIVE MILLION DOLLARS IS TO BE SPENT FOR NEW EQUIPMENT INCLUDING LOCOMOTIVES COVERED GRAIN HOPPER CARS AND ALUMINUM COAL CARS THE RAILROAD IS A UNIT OF BURLINGTON NORTHERN INCORPORATED FRANCIS J. MARINO WAS NAMED VICE CHAIRMAN OF THIS CREDIT CARD SERVICES COMPANY MR. MARINO FIFTY YEARS OLD IS CURRENTLY A SENIOR MEMBER OF THE LAW FIRM MAHONEY ADAMS AND CRISER HE HASN'T BEEN NAMED TO SAFECARD'S BOARD RICHARD J. ORWIG FIFTY TWO YEARS OLD FORMERLY VICE PRESIDENT AND DIRECTOR OF ADMINISTRATION WAS NAMED CHIEF FINANCIAL OFFICER AND CHIEF ADMINISTRATIVE OFFICER OF THE MAKER OF CARBIDE PRODUCTS CERAMICS AND MACHINECUTTING TOOLS HE SUCCEEDS JAMES E. MORRISON WHO HAS BEEN ACTING FINANCE CHIEF SINCE MID AUGUST MR. MORRISON CONTINUES AS TREASURER R. ANTHONY MCKINNON FIFTY THREE YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS COMPANY'S AMERICAN HAWAII CRUISES UNIT A POSITION THAT HAD BEEN VACANT SINCE THE SUBSIDIARY WAS ACQUIRED LAST FALL MR. MCKINNON WAS FORMERLY A CONSULTANT FOR GRAYCON GROUP INCORPORATED OF DALLAS SMALL BUSINESS BORROWERS ARE GETTING A BREAK FROM A SOURCE THEY DIDN'T EXPECT GOVERNMENT PRESSURE TOUGHER REGULATORY SCRUTINY OF SMALL BUSINESS LENDING HAS ENCOURAGED SOME BANKS TO CHARGE AS LITTLE AS TWO POINTS BELOW THE PRIME RATE FOR LOANS TO SMALL COMPANIES AUTHORITIES SAY BIG BANKS FEAR THE PERSISTENT PUBLIC PERCEPTION THAT THEY HAVE NEGLECTED SMALL BORROWERS MAY INCREASE POLITICAL OBSTACLES TO THEIR EXPANSION PLANS THE GOVERNMENT PRESSURE IS PAYING OFF AT A TIME WHEN SMALL BUSINESSES ALREADY BENEFIT FROM OTHER FORCES OF COURSE WEAK AND VERY YOUNG COMPANIES STILL REPORT FRUSTRATION AT THE BANK BUT THE STRONGER SMALL AND MID SIZE FIRMS FOUND LARGE LENDERS BEGAN WOOING THEM A FEW YEARS AGO TO OFFSET SLUGGISH DEMAND AMONG BIG CORPORATE BORROWERS BIG BANKS WERE SEARCHING FOR NEW MARKETS QUOTE BECAUSE TRADITIONAL MARKETS WERE DRYING UP QUOTE SAYS JOSEPH NORTON PROFESSOR OF BANKING LAW AT SOUTHERN METHODIST UNIVERSITY IN DALLAS SUCH MARKET FORCES REMAIN A SIGNIFICANT FACTOR PROFESSOR NORTON SAYS BUT NOW HE ADDS A PRIORITY OF MOST MAJOR BANKS COMMITTED TO EXPANSION AND GROWTH IS TO BE MORE AGGRESSIVE SMALL BUSINESS LENDERS TO CURRY FAVOR WITH THE GOVERNMENT AND BE IN COMPLIANCE UNDER LAWS SUCH AS THE COMMUNITY REINVESTMENT ACT AT THE SAME TIME BORROWERS OF ALL SORTS ARE BENEFITING FROM DECLINES IN INTEREST RATES THIS IS THE BEST TIME FOR SMALLER COMPANIES THAT HAVE DECENT CREDIT QUALITY TO BORROW SAYS JIM COLLET AN ERNST AND YOUNG SENIOR MANAGER OF CORPORATE FINANCE WHO SPECIALIZES IN SMALLER FIRMS COMPETITION FOR SUCH BORROWERS IS UNPRECEDENTED HE SAYS I HAVEN'T SEEN ANYTHING LIKE THIS IN MY CAREER WHILE MR. COLLET SAYS REGULATORY PRESSURE ACCOUNTS FOR JUST PART OF BIG BANKS' NEW AGGRESSIVENESS HE AGREES THAT IT IS A NEW AND GROWING INFLUENCE ON SMALL BUSINESS LENDING PRACTICES WHEN BANKS SEEK FEDERAL APPROVAL TO EXPAND HE ADDS THEY WANT TO SHOW THEIR BANK IS A GREAT USER FRIENDLY ORGANIZATION TO WOO KEYS FITNESS PRODUCTS INCORPORATED NATIONSBANK CORPORATION LAST SEPTEMBER AGREED TO INCREASE THE COMPANY'S CREDIT LINE TO THREE MILLION DOLLARS FROM TWO MILLION DOLLARS AND CUT ITS VARIABLE INTEREST RATE BY ONE PERCENTAGE POINT TO ONE POINT OVER PRIME SAYS TIM CHEN PRESIDENT AND FOUNDER OF THE DALLAS EXERCISE EQUIPMENT DISTRIBUTOR COMPANY SALES LAST YEAR GREW ABOUT FORTY PERCENT TO TWENTY MILLION DOLLARS MR. CHEN SAYS NATIONSBANK IN CHARLOTTE N. C. WAS ONE OF THREE LARGE BANKS THAT SOLICITED HIS BUSINESS IN NINETEEN NINETY THREE MORE THAN COURTED HIM DURING THE PREVIOUS TWO YEARS COMBINED ONE UNSUCCESSFUL SUITOR A CALIFORNIA BANK HAS SINCE OFFERED TO INCREASE KEYS' CREDIT LINE ANOTHER ONE MILLION DOLLARS REDUCE ITS INTEREST RATE TO THE PRIME RATE AND WAIVE CERTAIN CLOSING FEES LATELY BANKS SEEM WILLING TO DO ANYTHING FOR OUR BUSINESS MR. CHEN ADDS EVEN TINY BUSINESSES ARE BENEFITING FROM THE LENDING BONANZA FAMILY OWNED FONTES SALON IN READING PENNSYLVANIA WHOSE ANNUAL SALES GREW TEN PERCENT LAST YEAR TO TWO HUNDRED THOUSAND DOLLARS SWITCHED BANKERS LAST MAY WHEN PENNSYLVANIA NATIONAL BANK AND TRUST COMPANY AGREED TO CUT THE INTEREST RATE ON ITS ONE HUNDRED TEN THOUSAND DOLLAR DEBT NEARLY TWO PERCENTAGE POINTS TO SEVEN POINT TWO FIVE PERCENT SAYS DUANE CABRERA THE BEAUTY SALON'S MANAGER THE BANK A UNIT OF KEYSTONE FINANCIAL INCORPORATED ALSO EXTENDED AN UNSECURED TEN THOUSAND DOLLAR REVOLVING CREDIT LINE QUOTE SOMETHING NO BANK HAS EVER OFFERED US BEFORE QUOTE MR. CABRERA CONTINUES HE SAYS THE LOWER INTEREST RATE SAVES THE BUSINESS ABOUT EIGHT HUNDRED FIFTY DOLLARS A MONTH THE SALON USED THE NEW CREDIT LINE TO MEET PAYROLL TAXES AND WILL ALSO TAP IT TO PURCHASE COMPUTER EQUIPMENT HE SAYS THE BANK WAS VERY WILLING TO ACCOMMODATE US IN ALMOST EVERY WAY MR. CABRERA SAYS SOME BIG BANK OFFICERS SAY THEIR STEPPED UP MARKETING REFLECTS THEIR SUCCESS AT RESOLVING RECESSION RELATED PROBLEM LOANS AS WELL AS THE IMPROVING ECONOMY SOME OF THEIR STATED REASONING ALSO SEEMS INTENDED TO APPEAL TO POLITICIANS' SYMPATHETIC VIEW OF SMALL BUSINESSES AND THEIR ROLE IN THE RECOVERY SMALL BUSINESS IS AN IMPORTANT ENGINE OF ECONOMIC GROWTH AND JOB CREATION SAYS ALAN MCNALLY CHIEF EXECUTIVE OFFICER OF HARRIS BANKCORP A BANK OF MONTREAL UNIT IN CHICAGO THAT LAST MONTH BEGAN OFFERING SMALL BUSINESS LOANS AT A HALF POINT BELOW THE PRIME RATE THIS RATE IS GOOD FOR SMALL BUSINESS AND GOOD FOR THE ECONOMY BUT OTHER BANKERS CONCEDE THAT THEY ARE RESPONDING TO RISING REGULATORY PRESSURES MUCH OF THAT PRESSURE COMES FROM THE COMMUNITY REINVESTMENT ACT WHICH GOVERNS LENDING TO LOW INCOME BORROWERS AND AFFECTS BANKS WHEN THEY SEEK FEDERAL APPROVAL SMALL BUSINESS LENDING ADVOCATES HAVE USED HEARINGS RELATED TO THE ACT TO SPOTLIGHT THE SCARCITY OF SMALL BUSINESS LENDING AMONG BIG BANKS IN ADDITION THE CLINTON ADMINISTRATION WANTS TO EXPAND THE ACT TO REQUIRE MORE DETAILED REPORTING OF BANKS' SMALL BUSINESS LENDING ACTIVITY PEOPLE IN COMMUNITY REINVESTMENT ADVOCACY FEEL JOBS AND ECONOMIC DEVELOPMENT ARE JUST AS ESSENTIAL AS HOME LOANS TO REVITALIZING A COMMUNITY SAYS WOODY WIDROW VICE PRESIDENT OF THE NATIONAL COMMUNITY REINVESTMENT COALITION IN WASHINGTON IN NINETEEN NINETY TWO THE FEDERAL RESERVE BOARD HELD PUBLIC HEARINGS ABOUT BANKAMERICA CORPORATION'S PROPOSED ACQUISITION OF SECURITY PACIFIC CORPORATION AT THE HEARINGS A RECURRING THEME WAS THAT IT'S VERY DIFFICULT FOR SMALL BUSINESSES TO GET CONVENTIONAL FINANCING OF FIFTY THOUSAND DOLLARS OR BELOW SAYS A BANKAMERICA SPOKESMAN AS A RESULT THE SAN FRANCISCO BANK CREATED A SPECIAL PROGRAM AND MADE ONE HUNDRED NINETY ONE MILLION DOLLARS OF SUCH LOANS IN NINETEEN NINETY THREE THE SPOKESMAN SAYS IN EARLY NINETEEN NINETY THREE BANKAMERICA PLEDGED TO LEND ONE POINT EIGHT BILLION DOLLARS TO SMALL BUSINESSS OVER THREE YEARS OF COURSE FOR PLENTY OF SMALL BUSINESS OWNERS THE SHORTAGE OF FINANCING SEEMS AS ACUTE AS EVER BABY COTTAGE INCORPORATED A DAYCARE CENTER IN STAMFORD CONNECTICUT RECENTLY LEARNED THAT ITS BANK LOAN WOULDN'T BE RENEWED BECAUSE THE BUILDING SECURING THE DEBT HAD LOST ABOUT THIRTY PERCENT OF ITS VALUE SINCE THE LATE NINETEEN EIGHTIES SAYS OWNER NICK SNOW QUOTE BANKS ONLY WANT TO MAKE LOANS TO COMPANIES THAT DON'T NEED THEM QUOTE MR. SNOW SAYS HE CLAIMS THAT THE LENDER'S REFUSAL TO EXTEND HIS LOAN THREATENS TO PUT US OUT OF BUSINESS BELL ATLANTIC CORPORATION AND TELE COMMUNICATIONS INCORPORATED SAID YESTERDAY THEY HAVE RESOLVED QUOTE THE MAJOR ISSUES QUOTE OF THEIR PROPOSED COMBINATION AND HOPE TO SIGN A DEFINITIVE AGREEMENT WITHIN TWO WEEKS BELL ATLANTIC A REGIONAL BELL TELEPHONE COMPANY PLANS TO ACQUIRE T. C. I. THE NATION'S BIGGEST CABLE SYSTEM OPERATOR THEY ARE STILL WRESTLING WITH A NUMBER OF NETTLESOME POINTS IN THEIR MULTIBILLION DOLLAR TRANSACTION INCLUDING THE CRITICAL QUESTION OF HOW MUCH FINANCIAL PROTECTION TO GIVE T. C. I. SHAREHOLDERS THE COMPANIES WHICH WERE TO HAVE SIGNED A FINAL PACT FOR BELL ATLANTIC'S ACQUISITION OF T. C. I. AND ITS LIBERTY MEDIA SPINOFF BY LAST MONDAY DECLINED TO SET A NEW DEADLINE YESTERDAY THE COMPANIES REFUSED TO SAY WHICH MAJOR ISSUES HAVE BEEN DECIDED ONE EXECUTIVE FAMILIAR WITH THE TALKS SAID BELL ATLANTIC IS MAKING PROGRESS IN IRONING OUT SOME CRUCIAL AREAS LAST OCTOBER BELL ATLANTIC HAD PROPOSED ISSUING TWO HUNDRED TWENTY MILLION NEW SHARES TO ACQUIRE MOST OF T. C. I.'S ASSETS ESSENTIALLY GUARANTEEING A VALUE OF FIFTY FOUR DOLLARS FOR EACH NEW SHARE BUT THE PARTIES NOW ARE CONSIDERING ELIMINATING THE FIFTY FOUR DOLLAR A SHARE FLOOR THIS EXECUTIVE SAID INSTEAD THE COMPANIES ARE CONSIDERING DEVISING A PLAN THAT WOULD GIVE T. C. I. SHAREHOLDERS PRICE PROTECTION ON THE BACK END OF THE DEAL AFTER IT IS COMPLETE THE EXECUTIVE SAID ONE WAY TO ACHIEVE THAT MIGHT BE TO OFFER T. C. I. SHAREHOLDERS A GREATER STAKE IN BELL ATLANTIC AT SOME FUTURE DATE OTHER ISSUES YET TO BE RESOLVED INCLUDE HOW TO VALUE THE OWNERSHIP STAKES THAT T. C. I. AND LIBERTY HAVE IN A PLETHORA OF CABLE CHANNELS INCLUDING THE DISCOVERY CHANNEL ENCORE AND MORE THAN A DOZEN REGIONAL SPORTS NETWORKS THE COMPANIES ARE REPORTEDLY VERY CLOSE TO RESOLVING THE VALUATION ISSUE BELL ATLANTIC T. C. I. AND LIBERTY ALL DECLINED TO COMMENT PEOPLE WHO HAVE BEEN FOLLOWING THE NEGOTIATIONS ATTRIBUTE MOST OF THE DELAYS TO THE SHEER COMPLEXITY OF THE PROPOSAL RATHER THAN TO ANY MAJOR OBSTACLE YOU KNOW A TRANSACTION OF THIS SIZE IS GOING TO TAKE QUITE A BIT OF TIME SAID MARION BOUCHER AN ANALYST AT BEAR STEARNS AND COMPANY I THINK EVERYBODY WAS ANTICIPATING THAT IT WAS GOING TO BE A BUMPY ROAD KIRK O. KUWITZKY WAS NAMED VICE PRESIDENT OF MARKETING AT THIS NATURAL GAS PRODUCER AND MARKETER MOST RECENTLY HE HAD BEEN VICE PRESIDENT OF MARKETING AT ENRON GAS MARKETING A UNIT OF ENRON CORPORATION AND HE SUCCEEDS RALPH D. ROBINSON WHO RESIGNED LAST YEAR IN AN EFFORT TO BOLSTER ITS DERIVATIVES BUSINESS SALOMON BROTHERS INCORPORATED HIRED RICHARD KLOTZ AWAY FROM MERRILL LYNCH AND COMPANY TO BECOME DIRECTOR OF ITS FIXED INCOME DERIVATIVES RESEARCH OPERATION A NEW POSITION MR. KLOTZ RESIGNED AS HEAD OF MORTGAGE BACKED SECURITIES RESEARCH AT MERRILL LYNCH ON FRIDAY MERRILL LYNCH SAID IT HAD NO IMMEDIATE PLANS TO REPLACE THE FORMER MANAGING DIRECTOR AND DECLINED TO ELABORATE ON MR. KLOTZ'S DEPARTURE SALOMON BROTHERS A UNIT OF SALOMON INCORPORATED SAID MR. KLOTZ WILL REPORT TO TOM KLAFFKY MANAGING DIRECTOR IN CHARGE OF BOND PORTFOLIO ANALYSIS A SPOKESMAN FOR SALOMON SAID MR. KLOTZ WILL BEGIN WORK ON MONDAY QUOTE HIS EXPERIENCE IN A WIDE VARIETY OF FIXED INCOME SECURITIES INCLUDING DERIVATIVES ALLOWS US TO INTEGRATE DERIVATIVES RESEARCH INTO THE MAINSTREAM OF OUR OVERALL FIXED INCOME BUSINESS QUOTE A SALOMON BROTHERS SPOKESMAN SAID IT'S UNFORTUNATE THAT MERRILL LYNCH LOST SOMEONE OF HIS CALIBER SAID STEVEN LAZARUS AN EXECUTIVE RECRUITER WITH MARIASCHIN AND COMPANY HE SHOULD ENHANCE THE COMPANY'S DERIVATIVES OPERATIONS BECAUSE OF HIS STRONG BACKGROUND IN RESEARCH MR. KLOTZ ALSO BRINGS A POTENT STATISTICAL AND THEORETICAL BACKGROUND TO SALOMON INCLUDING EXTENSIVE ACADEMIC TRAINING IN MATHEMATICS AS DERIVATIVES BECOME INCREASINGLY ARCANE ANALYSTS BELIEVE THAT ACADEMIC AND MATHEMATICAL EXPERTISE WILL BECOME MORE HIGHLY PRIZED MEANWHILE MORGAN STANLEY GROUP INCORPORATED HIRED WILLIAM LEVY THIRTY SIX YEARS OLD AS VICE PRESIDENT IN ITS GLOBAL DERIVATIVES GROUP MR. LEVY WHO RESIGNED FROM KIDDER PEABODY AND COMPANY LAST WEEK WILL BE RESPONSIBLE FOR DISTRIBUTION OF OVER THE COUNTER EQUITY PRODUCTS A MORGAN STANLEY SPOKESMAN SAID MR. LEVY WOULD FOCUS HIS ATTENTION ON MARKETING TIMELY CUSTOMIZED OPTIONS SWAPS AND BASKETS TO THE FIRM'S CLIENTS KIDDER PEABODY IS A UNIT OF GENERAL ELECTRIC COMPANY B. JURGEN HINTZ FIFTY ONE WAS ELECTED TO THE BOARD OF THIS COMPUTER COMPANY INCREASING THE BOARD TO SEVEN MEMBERS MR. HINTZ IS CHIEF EXECUTIVE OFFICER OF CARNAUD METALBOX S. A. AN ANGLO FRENCH PACKAGING GROUP COMPAQ COMPUTER CORPORATION IS EXPECTED TO INTRODUCE NEXT WEEK ITS FIRST QUOTE SUBNOTEBOOK QUOTE COMPUTER JOINING A THRONG OF COMPETITORS HOPING FOR A SLICE OF PORTABLE COMPUTING'S HOTTEST NICHE ACCORDING TO ANALYSTS AND TRADE PRESS REPORTS COMPAQ'S MACHINE WITH THE CODE NAME AERO WILL RESEMBLE OTHER SUBNOTEBOOK MODELS WITH A WEIGHT OF ABOUT THREE POINT FIVE POUNDS A BLACK AND WHITE SCREEN AND MANY OF THE SAME FEATURES FOUND ON NOTEBOOK COMPUTERS THAT WEIGH NEARLY TWICE AS MUCH THE TWIST SAY THE EXPERTS IS THAT COMPAQ'S OFFERING WILL BE PRICED AS MUCH AS ONE THOUSAND DOLLARS BELOW THE COMPETITION AT ABOUT ONE THOUSAND FOUR HUNDRED DOLLARS AND WILL BE PITCHED AS A P. C. FOR THE HOME OTHER SUBNOTEBOOKS SUCH AS THOSE FROM INTERNATIONAL BUSINESS MACHINES CORPORATION AND TOSHIBA CORPORATION HAVE BEEN MARKETED TO TRAVELING EXECUTIVES OR OFFICE WORKERS NEEDING A SECOND COMPUTER KIMBALL BROWN AN ANALYST AT DATAQUEST INCORPORATED A SAN JOSE CALIFORNIA MARKET RESEARCH CONCERN PREDICTS COMPAQ'S PRICES WILL HIT A SWEET SPOT IN THE MARKET THEY'RE SO ON TRACK ON THIS THAT IT'S DISGUSTING SAID MR. BROWN RESPONDING TO SPECULATION ABOUT COMPAQ'S SUBNOTEBOOK STRATEGY PEOPLE LOOK AT THESE PRODUCTS AND SAY IT'S LITTLE SO IT SHOULD COST LESS THEY'RE DOING EXACTLY WHAT THEY SHOULD BE DOING A SPOKESWOMAN FOR THE HOUSTON P. C. GIANT WOULDN'T COMMENT ON THE MACHINE WHICH IS EXPECTED TO BE FORMALLY ANNOUNCED MONDAY COMPAQ'S PROBLEM EXPERTS SAY IS THAT IT IS A LATECOMER TO A MARKET THAT IS ALREADY CROWDED IN ADDITION TO I. B. M.'S THINKPAD AND TOSHIBA'S PORTEGE MODELS COMPAQ'S MACHINE WILL BE COMPETING AGAINST SIMILAR PRODUCTS FROM GATEWAY TWO THOUSAND INCORPORATED ZEOS INTERNATIONAL LIMITED AND HEWLETT PACKARD COMPANY WILLIAM BLUESTEIN A DIRECTOR OF COMPUTER STRATEGY RESEARCH AT FORRESTER RESEARCH INCORPORATED IN CAMBRIDGE MASSACHUSETTS SAYS COMPAQ VIEWS THE SUBNOTEBOOK MARKET AS PARTICULARLY IMPORTANT GIVEN THE COMPANY'S LEGACY AS A TRENDSETTER IN PORTABLE P. C.S COMPAQ USED TO BE THE PACESETTER IN NOTEBOOKS AND ALL OF THE SUDDEN THEY'RE GETTING ONE UPPED MR. BLUESTEIN SAID WHILE THE SUBNOTEBOOK MARKET IS STILL TINY WHEN COMPARED WITH BIGGER MACHINES ANALYSTS ARE BRACING FOR BIG GAINS DATAQUEST ESTIMATES THAT ONE POINT THREE MILLION SUBNOTEBOOKS WILL BE SOLD THIS YEAR DOUBLE FROM THE SIX HUNDRED THIRTEEN THOUSAND IN NINETEEN NINETY THREE WITHIN FIVE YEARS DATAQUEST PREDICTS SUBNOTEBOOK SALES WILL EQUAL THOSE OF NOTEBOOKS AS WHEN WE SAW IT THERE BUT WE DON'T HAVE HIS PANACHE I'VE DONE SOMETHING CONCRETE STEPHEN J. IANUZZI THIRTY FIVE YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF EXECUTIVE OFFICER AT THE BLENHEIM HOLDINGS INCORPORATED UNIT OF THIS PRODUCER OF CONFERENCES AND EXHIBITIONS MR. IANUZZI MOST RECENTLY CHIEF OPERATING OFFICER OF THE FORT LEE N. J. UNIT WILL BE RESPONSIBLE FOR THE GROUP'S NORTH AMERICAN MEXICAN AND LATIN AMERICAN ACTIVITIES E. BRIAN SMITH CHIEF EXECUTIVE OFFICER WAS ALSO ELECTED CHAIRMAN SUCCEEDING TONY C. CANONIE JUNIOR MR. SMITH FIFTY SIX YEARS OLD IS THE PRINCIPAL SHAREHOLDER OF SMITH ENVIRONMENTAL TECHNOLOGIES CORPORATION WHICH RECENTLY ACQUIRED A FORTY SIX POINT FIVE PERCENT STAKE IN CANONIE FROM W. R. GRACE AND COMPANY AND PLACED FOUR NEW DIRECTORS ALUMINUM COMPANY OF AMERICA SAID IT WILL USE TWO HUNDRED TWENTY FIVE MILLION DOLLARS OF THE PROCEEDS FROM ITS OFFERING OF FIVE POINT SEVEN FIVE PERCENT NOTES DUE TWO THOUSAND ONE TO REDEEM ALL OF THE COMPANY'S OUTSTANDING SEVEN PERCENT DEBENTURES DUE TWO THOUSAND ELEVEN THE COMPANY SAID THE REDEMPTION AT ONE HUNDRED PERCENT WILL RESULT IN AN EXTRAORDINARY CHARGE TO FIRST QUARTER NINETEEN NINETY FOUR EARNINGS OF SIXTY SIX MILLION DOLLARS OR SEVENTY FIVE CENTS A SHARE ALCOA POSTED NET INCOME OF TWENTY SEVEN POINT SIX MILLION DOLLARS OR THIRTY ONE CENTS A SHARE IN THE NINETEEN NINETY THREE FIRST QUARTER ALCOA SAID THE TWENTY FIVE MILLION DOLLARS THAT WILL REMAIN FROM THE NOTE OFFERING WILL BE USED FOR GENERAL CORPORATE PURPOSES CCP INSURANCE INCORPORATED SAID ITS BOARD AUTHORIZED THE REPURCHASE OF UP TO ONE MILLION OR AN INDICATED THREE POINT FOUR PERCENT OF ITS TWENTY NINE MILLION COMMON SHARES OUTSTANDING THE INSURANCE CONCERN SAID IT CONSIDERS ITS SHARES TO BE UNDERVALUED CURRENTLY THE TIMING AND TERMS OF ANY REPURCHASES WOULD BE BASED ON MARKET CONDITIONS THE COMPANY SAID IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CCP CLOSED AT TWENTY FOUR DOLLARS AND FIFTY CENTS A SHARE UP EIGHTY SEVEN POINT FIVE CENTS CLINTON CAUTIONED AGAINST SUPERFICIAL TINKERING WITH THE HEALTH SYSTEM THE PRESIDENT SAID HE OPPOSED ANY LEGISLATIVE EFFORTS TO ACHIEVE HEALTH CARE REFORM INCREMENTALLY SAYING IT WOULD BE A MISTAKE TO QUOTE TINKER AT THE EDGES QUOTE MEANWHILE THE WHITE HOUSE LOBBIED TO STAVE OFF AN EMBARRASSING VOTE BY AN INFLUENTIAL BUSINESS GROUP IN FAVOR OF A RIVAL HEALTH CARE BILL THE BUSINESS ROUNDTABLE PLANS TO VOTE TODAY ON A PANEL RECOMMENDATION SUPPORTING THE COMPETING LEGISLATION AUTHORED BY REPRESENTATIVE COOPER AND SENATOR BREAUX A KEY CLINTON ALLY ON HEALTH CARE SENATOR JAY ROCKEFELLER CRITICIZED THE PRESIDENT FOR TALKING ABOUT COMPROMISE ON COST CONTROLS DURING A MEETING WITH GOVERNORS SAYING CLINTON'S COMMENTS WEREN'T PARTICULARLY USEFUL THE HEAD OF THE I. M. F. SAID HIS AGENCY WOULD NOT BACK AWAY FROM THE STIFF CONDITIONS IT HAS SET FOR THE RELEASE OF MORE AID TO RUSSIA CAMDESSUS PREDICTED THAT BECAUSE OF THE I. M. F.'S POSITION AND COMMENTS MADE BY THE YELTSIN GOVERNMENT TALKS AIMED AT UNLOCKING ONE POINT FIVE BILLION DOLLARS IN I. M. F. FUNDS MAY NOT BE EASY A BOSTON LAWYER WAS NOMINATED BY CLINTON TO BE ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS DEVAL PATRICK THIRTY SEVEN HAS BEEN INVOLVED IN A NUMBER OF PRO BONO CIVIL RIGHTS CASES THE POST FOR CHIEF CIVIL RIGHTS ENFORCER HAS BEEN VACANT SINCE CLINTON TOOK OFFICE TWO PRIOR CHOICES LANI GUINIER AND JOHN PAYTON WERE FORCED TO WITHDRAW SERBS ARE INTENSIFYING THEIR PERSECUTION OF MUSLIMS AND CROATS IN NORTHWESTERN BOSNIA WITH KILLINGS BEATINGS AND EVICTIONS IN THE VICINITY OF SERB CONTROLLED BANJA LUKA A U. N. OFFICIAL SAID IN WASHINGTON BRITAIN'S FOREIGN SECRETARY URGED THE U. S. TO ASSUME AN ACTIVE ROLE IN DIPLOMATIC EFFORTS TO SETTLE THE WAR IN BOSNIA RUSSIAN LEADERS CLASHED OVER THE POSSIBILITY OF AIR STRIKES AGAINST SERBS IN BOSNIA WITH PREMIER CHERNOMYRDIN RULING OUT AIR RAIDS AND FOREIGN MINISTER KOZYREV SAYING MOSCOW DOESN'T OPPOSE THE IDEA ULTRANATIONALIST ZHIRINOVSKY VOWED IN MONTENEGRO THAT HE WOULD UNSEAT THE MOSCOW GOVERNMENT AND HELP SERBS RESIST THE WEST IRISH ACTIVIST GERRY ADAMS CALLED FOR THE CLINTON ADMINISTRATION TO BE ACTIVELY INVOLVED IN THE NORTHERN IRELAND PEACE PROCESS AND TO PROD BRITAIN TO BREAK A DEADLOCK SPEAKING IN NEW YORK ADAMS WHO HEADS THE I. R. A.'S POLITICAL WING ACCUSED THE BRITISH OF STALLING AN EMBARGO ON VIETNAM MAY BE LIFTED THIS WEEK BY CLINTON A SENIOR U. S. OFFICIAL SAID PRESIDENTIAL ADVISERS HAVE RECOMMENDED SUCH A MOVE BASED ON HANOI'S COOPERATION IN EFFORTS TO HELP THE U. S. RESOLVE CASES OF M. I. A.S FROM THE VIETNAM WAR LAST WEEK THE SENATE APPROVED A RESOLUTION CALLING FOR AN END TO THE NINETEEN YEAR OLD EMBARGO THE U. S. WAS FORCED BY ITS MAJOR TRADING PARTNERS TO SCALE BACK A PLAN TO LIBERALIZE EXPORT CONTROLS ON CERTAIN COMPUTERS ADMINISTRATION OFFICIALS SAID THAT MEMBERS OF COCOM REJECTED THE U. S. PROPOSAL TO EASE RESTRICTIONS COMMERCE SECRETARY BROWN IS EXPECTED TO BE INFORMED BY THE JUSTICE DEPARTMENT THIS WEEK THAT IT HASN'T FOUND ANY EVIDENCE TO SUPPORT CHARGES THAT BROWN SOUGHT A BRIBE TO INFLUENCE U. S. POLICY TOWARD VIETNAM A LETTER FROM THE DEPARTMENT WILL MOST LIKELY BE SENT TO BROWN WITHIN A FEW DAYS AN ADMINISTRATION OFFICIAL SAID THE P. L. O. HAS ASSURED ISRAEL THAT PALESTINIANS ARE HEADED TOWARD CONFEDERATION WITH JORDAN RATHER THAN A SEPARATE STATE THE ISRAELI FOREIGN MINISTER SAID MANY ISRAELIS HAVE FEARED THAT PALESTINIAN AUTONOMY IN GAZA AND JERICHO COULD LEAD TO A PALESTINIAN STATE ISRAEL WILL BE ALLOWED TO EXPORT EQUIPMENT TO THE U. S. DERIVED FROM THAT NATION'S BALLISTIC MISSILE PROGRAM AS A RESULT U. S. FIRMS MAY BE ABLE TO IMPORT ISRAEL'S SPACELAUNCH VEHICLE TONYA HARDING'S EX HUSBAND PLEADED GUILTY TO TAKING PART IN THE JANUARY SIXTH ATTACK THAT FORCED HARDING'S RIVAL NANCY KERRIGAN OUT OF THE U. S. FIGURE SKATING CHAMPIONSHIPS JEFF GILLOOLY STRUCK A PLEA BARGAIN UNDER WHICH HE CONFESSED TO A RACKETEERING CHARGE IN EXCHANGE FOR HIS TESTIMONY HARDING HAS DENIED THAT SHE HELPED PLAN THE ATTACK A HOUSE COMMITTEE APPROVED SEVEN POINT SEVEN BILLION DOLLARS IN EMERGENCY ASSISTANCE FOR VICTIMS OF THE LOS ANGELES EARTHQUAKE CLEARING THE WAY FOR THE FULL HOUSE TO CONSIDER THE MATTER AS EARLY AS TOMORROW THE SALE OF AN EIGHTY PERCENT STAKE IN BRITISH AUTO MAKER ROVER CARS TO BAYERISCHE MOTOREN WERKE A. G. PUTS HONDA MOTOR COMPANY THE OWNER OF THE REMAINING TWENTY PERCENT BETWEEN A ROCK AND A HARD PLACE THE JAPANESE AUTO MAKER HAD LOOKED AT ITS MINORITY STAKE IN ROVER AS A FOOT IN THE DOOR OF QUOTE FORTRESS EUROPE QUOTE WHOSE PERCEIVED BARRIERS TO TRADE HAVE WORRIED HONDA EXECUTIVES NOW WITH THE DOOR SLAMMED UNEXPECTEDLY ON ITS TOES HONDA CAN EITHER ABANDON THAT STRATEGY OR REMAIN A RELUCTANT PLAYER IN A NEW PARTNERSHIP IT DIDN'T SEEK INDEED THE NEW PARTNERS ARE TO SOME EXTENT RIVALS WHILE HONDA AND B. M. W. DON'T COMPETE HEAD ON THROUGHOUT THEIR PRODUCT LINES THE GERMAN CAR MAKER IS ONE OF THE FEW FOREIGN CAR MAKERS THAT HAS MANAGED TO CRACK THE JAPANESE MARKET SELLING MORE THAN TWENTY FIVE THOUSAND UNITS HERE LAST YEAR B. M. W. FILLS A SMALL BUT LUCRATIVE NICHE IN JAPAN FOR TOP FLIGHT EUROPEAN CARS WHILE HONDA AND OTHER JAPANESE VOLUME CAR PRODUCERS HAVE BEEN HURTING IN JAPAN'S RECESSION B. M. W. IS ONE OF OUR COMPETITORS SAID A HONDA SPOKESMAN AND A COMPETITOR HOLDING AN EIGHTY PERCENT SHARE IN A HONDA AFFILIATE IS NOT A NATURAL SITUATION WHILE THE TRANSACTION ANNOUNCED MONDAY BETWEEN B. M. W. AND ROVER WHICH IS A UNIT OF BRITISH AEROSPACE P. L. C. IS A SETBACK FOR HONDA IT ISN'T A DISASTER ANALYSTS SAY HONDA HAS ITS OWN FOOTHOLD IN THE EUROPEAN MARKET WITH A SEPARATE AUTO FACTORY IN BRITAIN MOREOVER ANALYSTS SAY THE B. M. W. INVESTMENT IN ROVER WON'T HURT HONDA'S BOTTOM LINE OTHER THAN HURT PRIDE WE SEE NO LASTING EFFECT ON HONDA'S BUSINESS CAUSED BY B. M. W.'S PURCHASE SAID JONATHAN DOBSON AN AUTOMOBILE INDUSTRY ANALYST AT JARDINE FLEMING SECURITIES HIS ANALYSIS IS SIMPLE IF IT HANGS ON TO ITS ROVER STAKE HONDA WILL STILL BE THE TWENTY PERCENT OWNER OF RELATIVELY BUOYANT ROVER INDEED ANALYSTS SAY ROVER MAY SOON BE TURNING A CONSIDERABLE PROFIT FOR ITS OWNERS THANKS IN LARGE PART TO HONDA'S TECHNICAL ASSISTANCE MOREOVER HONDA PAID ABOUT ONE HUNDRED FORTY MILLION TWO HUNDRED ELEVEN POINT ONE MILLION DOLLARS FOR ITS TWENTY PERCENT STAKE THAT STAKE IS NOW VALUED AT ROUGHLY TWO HUNDRED MILLION BASED ON THE EIGHT HUNDRED MILLION B. M. W. IS PAYING FOR THE REMAINING EIGHTY PERCENT STILL THE B. M. W. PURCHASE WILL FORCE HONDA TO RE EXAMINE SEVERAL OF ITS OPERATING ASSUMPTIONS FOR EUROPE BUSINESS HASN'T BEEN GOOD FOR HONDA LATELY A STRONG YEN HAS EATEN INTO REVENUE FROM THE U. S. AND AN ECONOMIC DOWNTURN IN JAPAN HAS ERODED PROFIT AT HOME IN THE FISCAL FIRST HALF HONDA'S CONSOLIDATED NET INCOME DROPPED SIXTY THREE PERCENT TO NINE POINT THREE BILLION YEN EIGHTY FIVE POINT SEVEN MILLION DOLLARS MANY ANALYSTS SAY THAT DEPLETED COFFERS ARE THE MAIN REASON HONDA TURNED DOWN AN OPTION FOR IT TO ACQUIRE A MAJORITY INTEREST IN ROVER HONDA LIKELY WAS UNWILLING TO TAKE MORE OF ROVER BECAUSE IT DIDN'T WANT TO SPEND THE MONEY GIVEN THE HARD TIMES IT IS EXPERIENCING IN JAPAN AND THE U. S. SAID JARDINE FLEMING'S MR. DOBSON HONDA SAYS IT DECLINED TO BUY MORE OF ROVER BECAUSE IT WANTED TO PRESERVE THE COMPANY'S BRITISH CHARACTER MOREOVER A SPOKESMAN SAID TUESDAY THAT HONDA HASN'T DECIDED ON ANY COURSE OF ACTION HE INDICATED THE COMPANY EXPECTS TO HAVE TALKS WITH B. M. W. EXECUTIVES BEFORE DECIDING ITS STRATEGY EVEN IF HONDA DECIDES TO BACK OUT OF ITS TWENTY PERCENT HOLDING COOPERATION BETWEEN ROVER AND HONDA'S EUROPEAN UNIT IS LIKELY TO CONTINUE FOR AT LEAST THE SHORT TERM SINCE NINETEEN SEVENTY NINE WHEN HONDA FIRST ENTERED A LICENSING AGREEMENT WITH ROVER THE TIES BETWEEN THE TWO COMPANIES HAVE GROWN INCREASINGLY CLOSE WITH SEVERAL TECHNOLOGICAL AND PARTS SHARING AGREEMENTS MANY ROVERS COME EQUIPPED WITH HONDA ENGINES BESIDES GIVING ROVER TECHNOLOGICAL ASSISTANCE HONDA HAS BEGUN INTEGRATING OPERATIONS BETWEEN ROVER AND ITS OWN PLANT IN THE U. K. THE RELATIONSHIP INVOLVES MORE THAN JUST THE SHAREHOLDING ASPECT SAID THE HONDA SPOKESMAN QUOTE IT MUST CONTINUE FOR A WHILE QUOTE SEPARATELY BRITISH INDUSTRY MINISTER TIM SAINSBURY SOUGHT TO REASSURE JAPANESE INVESTORS IN THE U. K. IN THE WAKE OF THE B. M. W. ROVER DEAL I WOULD LIKE TO REASSURE ANY JAPANESE INVESTORS THAT AS FAR AS THIS COUNTRY IS CONCERNED WE WILL CONTINUE TO WELCOME JAPANESE INVESTMENT HE SAID EXPRESSING SYMPATHY FOR HONDA THEIR PARTNER HAS GONE OFF WITH SOMEBODY ELSE AND I CAN UNDERSTAND THEIR REACTION OIL PRICES JUMPED ON REPORTS THAT BITTERLY COLD WEATHER WILL PLAGUE MUCH OF THE U. S. THROUGH NEXT WEEK CONCERN THAT SEVERE TEMPERATURES WOULD CAUSE OIL USE TO RISE ENGENDERED A SURGE OF BUYING THAT GREW THROUGHOUT THE TRADING SESSION THE BUYING TURNED QUOTE INTO A RALLY OUT OF THE BLUE QUOTE TRADERS SAID AS SHORT TERM BULLISH FACTORS TOOK PRECEDENCE OVER LONG TERM BEARISH FUNDAMENTALS SEASONALITY TOOK A FRONT SEAT WHILE ISSUES SUCH AS OPEC ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES OVERPRODUCTION TOOK A BACK SEAT SAID PETER GIGNOUX MANAGER OF THE PETROLEUM DESK FOR SMITH BARNEY SHEARSON LIMITED'S LONDON OFFICE CRUDE OIL FOR MARCH DELIVERY SOARED SEVENTY THREE CENTS A BARREL TO FIFTEEN DOLLARS AND NINETY TWO CENTS A BARREL HEATING OIL FOR THE SAME PERIOD JUMPED BY TWO POINT TWO EIGHT CENTS A GALLON TO FIFTY ONE POINT EIGHT THREE CENTS WHILE GASOLINE PRICES ROSE TWO POINT THREE THREE CENTS A GALLON TO FORTY FIVE POINT FIVE FIVE CENTS FUELING THE PRICE INCREASES WERE REPORTS THAT UNUSUALLY LOW TEMPERATURES THROUGH SUNDAY WOULD CAUSE ENERGY USE THROUGHOUT THE U. S. TO RISE BY TWENTY FIVE PERCENT ABOVE NORMAL LEVELS ACCORDING TO ACCU WEATHER INCORPORATED IN STATE COLLEGE PENNSYLVANIA JAMES CANDOR ASSISTANT VICE PRESIDENT FOR THE WEATHER FORECASTING ORGANIZATION SAID THAT IN THE NORTHEAST THE WORLD'S LARGEST HEATING OIL MARKET TEMPERATURES WERE EXPECTED TO BE EIGHT TO TEN DEGREES BELOW NORMAL NORMAL TEMPERATURES IN NEW YORK CITY FOR THIS TIME OF YEAR RANGE BETWEEN TWENTY FIVE DEGREES AND THIRTY SEVEN DEGREES FAHRENHEIT HE SAID NEXT WEEK ACCU WEATHER EXPECTS TEMPERATURES IN THE NORTHEAST AND IN THE MIDWEST TO LOG IN AT THREE DEGREES TO SIX DEGREES FAHRENHEIT BELOW NORMAL JON DAVIS METEOROLOGIST FOR SMITH BARNEY SHEARSON SAYS PLAIN AND SIMPLY IT'S GOING TO BE BRUTALLY COLD AS TWO ARCTIC AIR MASSES MOVE DOWN ACROSS THE U. S. OVER THE NEXT WEEK TO TEN DAYS REPORTS THAT HEATING OIL SUPPLIES IN SOME AREAS ARE BECOMING TIGHT HELPED TO DRIVE THE RALLY ACCORDING TO A SPOKESMAN FOR SUN COMPANY IN PHILADELPHIA CONTRACT CUSTOMERS AREN'T ABLE TO TAKE THE FULL VOLUME THEY CONTRACTED FOR ALL AT ONCE AS THEY SOMETIMES CHOOSE TO DO RATHER THEY WILL HAVE TO SPREAD THEIR PURCHASES OUT OVER THE MONTH AND NONCONTRACT CUSTOMERS ARE BEING BARRED FROM PURCHASING ANY SUPPLIES FROM CERTAIN SUN TERMINALS AS THEY SOMETIMES DO THIS CONDITION WILL LIKELY LAST THROUGH FEBRUARY THE SUN SPOKESMAN SAID THAT BARGES HAVE HAD TROUBLE MOVING UP THE FROZEN RIVERS TO THE TERMINALS IN ADDITION THE SEVERE COLD HAS CAUSED SOME PRODUCTION PROBLEMS AT SUN REFINERIES FOLLOWING A SERIES OF FIRES POSSIBLY CAUSED BY COLD WEATHER AMOCO CORPORATION SAID THAT IT IS STILL ALLOCATING SOME SUPPLIES OF DIESEL FUEL ALTHOUGH THE ALLOCATION OF GASOLINE SUPPLIES HAS BEEN LIFTED AMOCO SAID ITS REFINERY IN WHITING INDIANA WAS AGAIN OPERATING AT MORE THAN SEVENTY FIVE PERCENT OF ITS CAPACITY OF FOUR HUNDRED THOUSAND BARRELS A DAY ITS PRODUCTION HAD BEEN REDUCED BECAUSE OF THE FIRES COPPER COPPER FUTURES PRICES SURGED AS DEMAND FOR COPPER REMAINED STRONG AND INDUSTRIAL METALS PRICES ROSE ACROSS THE BOARD AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR MARCH DELIVERY WAS UP TWO POINT EIGHT CENTS TO EIGHTY NINE POINT SIX CENTS A POUND FRED DEMLER METALS ECONOMIST FOR E. D. AND F. MAN SAID STRONG SUPPLY AND DEMAND FACTORS CONTINUE TO EXERT UPWARD PRESSURE ON COPPER FUTURES PRICES WORLD WIDE COPPER CONSUMPTION WAS UP TWO POINT FOUR PERCENT IN NINETEEN NINETY THREE WHILE WORLD WIDE MINE PRODUCTION DROPPED ONE POINT EIGHT PERCENT HE SAID IN THE FOURTH QUARTER OF NINETEEN NINETY THREE U. S. CONSUMPTION OF COPPER WAS UP MORE THAN EIGHT PERCENT FROM THE YEAR AGO PERIOD IN LONDON PRICES OF ALUMNIMUM NICKEL AND ZINC ALSO ROSE YESTERDAY LIVESTOCK AND MEATS PRICES OF CATTLE FUTURES CONTRACTS FELL AMID CONTINUING SIGNS OF WEAK DEMAND AT THE RETAIL LEVEL IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE THE CATTLE CONTRACT FOR FEBRUARY DELIVERY DROPPED ONE POINT OH TWO CENTS A POUND TO SETTLE AT SEVENTY TWO POINT TWO SEVEN CENTS A POUND BEEF DEMAND HAS BEEN LACKLUSTER SINCE LAST FALL TRADERS ARE ALSO BEGINNING TO FOCUS ON THE FRIDAY RELEASE OF THE AGRICULTURE DEPARTMENT'S JANUARY FIRST SURVEY OF THE NATION'S CATTLE HERD DAN VAUGHT A LIVESTOCK ANALYST AT A. G. EDWARDS AND SONS SAINT LOUIS SAID HE EXPECTS THE GOVERNMENT TO REPORT THAT THE U. S. HERD INCREASED ONE PERCENT TO ONE HUNDRED ONE POINT NINE MILLION ANIMALS FROM A YEAR EARLIER HOG PRICES SLIPPED IN SYMPATHY WITH CATTLE RON KAPLAN VICE PRESIDENT OF SALES AND MARKETING WAS NAMED PRESIDENT OF THIS GIFT AND SNACK MAKER MR. KAPLAN TWENTY EIGHT YEARS OLD SUCCEEDS HIS FATHER WARREN KAPLAN FIFTY SIX HIS WIFE JUDITH KAPLAN REMAINS CHIEF EXECUTIVE OFFICER A COMPANY SPOKESPERSON SAID THE CHANGE FOLLOWS THE EXPIRATION OF THE SENIOR MR. KAPLAN'S EMPLOYMENT CONTRACT AND GIVES THE COMPANY A QUOTE MORE AGGRESSIVE LEADER QUOTE THE KAPLANS DECLINED FURTHER COMMENT WHEN SVETLANA OVCHARENKO A UKRAINIAN BIOCHEMIST OPENS A DOOR OFF A DIM BASEMENT CORRIDOR IN THE BRONX STRONG HERBAL AND EARTHY SCENTS RUSH OUT THE SCENTS EMANATE FROM WHITE MUSLIN SACKS PILED NEARLY TO THE CEILING WITHIN ARE HUNDREDS OF PLANT SAMPLES FROM WISCONSIN TEXAS PUERTO RICO AND THE GARDEN'S OWN TWO HUNDRED FIFTY ACRES IN THE BRONX N. Y. HOME TO ABOUT TWO THOUSAND NATIVE SPECIES THE SAMPLES HAVE BEEN COLLECTED IN A JOINT PROJECT BY PHARMACEUTICAL GIANT PFIZER INCORPORATED AND THE NEW YORK BOTANICAL GARDEN TO FIND PLANTS TO TEST AS POTENTIAL DRUGS ACKNOWLEDGING THAT NATURE MAY SOMETIMES OUTSTRIP CHEMISTRY AT MAKING MEDICINES THEY ARE GUESSING THAT A CANCER CURE MAY BE GROWING IN YOUR BACKYARD PLANTS HAVE BEEN A BOUNTIFUL SOURCE OF MEDICINES FOR THOUSANDS OF YEARS ONE QUARTER OF ALL PRESCRIPTION DRUGS USED IN THE U. S. HAVE ORIGINS IN PLANTS THE ROSY PERIWINKLE AND THE PACIFIC YEW TREE HAVE YIELDED IMPORTANT CANCER TREATMENTS THE HEART MEDICINE DIGITALIS COMES FROM THE FOXGLOVE LEAF FROM THE POISONOUS BELLADONNA HAVE COME COMPOUNDS USED TO DILATE THE PUPIL YET FEWER THAN ONE PERCENT OF THE WORLD'S TWO HUNDRED FIFTY THOUSAND FLOWERING PLANT SPECIES HAVE UNDERGONE THOROUGH ANALYSIS AS POTENTIAL MEDICINES ACCORDING TO THE BOTANICAL GARDEN PLANTS ARE HARD TO WORK WITH AND PLANT CHEMISTRIES CAN CHANGE UNPREDICTABLY DEPENDING ON THE SEASON SOIL CONDITIONS AND THE PRESENCE OF PESTS SAYS GARY R. SCHULTE THE SENIOR RESEARCH SCIENTIST HEADING UP THE PROJECT FOR PFIZER DRUG RESEARCHERS INSTEAD USUALLY PREFER TO CREATE THEIR OWN SYNTHETIC CHEMICALS HE SAYS BUT THE PFIZER PLANT PROJECT SEEKS TO TAKE DRUG RESEARCH BACK TO ITS ROOTS LITERALLY IN THE FIRST YEAR OF THE TWO MILLION DOLLARS THREE YEAR PROJECT THE BOTANICAL GARDEN IS TRYING TO COLLECT A BROAD SAMPLE OF U. S. PLANTS COLLECTIONS IN THE SECOND AND THIRD YEARS WILL FOCUS MORE ON PLANT VARIETIES THAT ARE KNOWN TO PRODUCE MEDICINAL COMPOUNDS OR THAT HAVE BEEN USED AS FOLK REMEDIES IN OTHER CULTURES MICHAEL J. BALICK LEADS THE PROGRAM FOR THE GARDEN AFTER ESTABLISHING A PLANT'S IDENTITY THE PROJECT'S FOUR FIELD BOTANISTS SEPARATE IT INTO ITS PARTS LEAVES ROOTS STEMS FLOWERS BARKS BERRIES EACH OF WHICH MAY PRODUCE DIFFERENT CHEMICAL COMPOUNDS EXTRACTING THOSE CHEMICAL COMPOUNDS BEGINS UPSTAIRS FROM THE SCENTED ROOM IN A LABORATORY STAFFED BY MS. OVCHARENKO AND AN ASSISTANT ERICA RODRIGUEZ ON A RECENT MORNING MS. RODRIGUEZ FILLED A LARGE BELL BOTTOMED FLASK WITH COARSELY GROUND WOOD SHAVINGS AND METHANOL A CLEAR LIQUID THAT IMMEDIATELY TOOK ON A GREEN TINT AS IT BEGAN DRAWING OUT THE PLANT'S CHEMICAL COMPOUNDS EVENTUALLY THE LIQUID IS REDUCED TO ROUGHLY A TABLESPOON OF GELLIKE EXTRACT THE HUNT FOR NEW DRUGS BEGINS IN EARNEST AFTER THE EXTRACTS ARRIVE AT THE NEWLY CREATED NATURAL PRODUCTS CHEMISTRY GROUP AT PFIZER'S MAIN RESEARCH FACILITY IN GROTON CONNECTICUT THE OPERATION IS STAFFED BY A GROUP OF YOUNG SCIENTISTS DRAWN FROM MORE TRADITIONAL PFIZER RESEARCH OPERATIONS BY THE APPEAL OF WORKING WITH NATURAL MATERIALS BUT LITTLE ELSE RESEMBLES NATURE IN THE PFIZER LABORATORY WHICH HUMS WITH COMPUTERIZED ROBOTIC ARMS AND OTHER SCIENTIFIC INSTRUMENTS A MAJOR BARRIER TO WORKING WITH PLANTS IN THE PAST WAS THE TEDIUM OF MANUALLY SEPARATING THE DOZENS OF CHEMICAL COMPOUNDS IN A PLANT EXTRACT A PROCESS THAT WOULD OFTEN TAKE MONTHS BUT NEW TECHNOLOGY NOW ENABLES THE LAB TO PROCESS HUNDREDS OF EXTRACTS CONTAINING THOUSANDS OF COMPOUNDS A WEEK DOCTOR SCHULTE SAYS IN THE PFIZER LAB THE PLANT'S CONGLOMERATION OF CHEMICALS IS ROUGHLY SEPARATED INTO NINETY TINY TEST TUBES EACH CONTAINING A MORE MANAGEABLE TEN TO TWENTY COMPOUNDS THE EXTRACTS ARE TAKEN TO ONE OF TWO BIOLOGICAL SCREENING ROOMS WHERE THEIR EFFECT IS TESTED ON DOZENS OF DISEASES INCLUDING CANCERS DIABETES BACTERIAL INFECTIONS ALZHEIMER'S DISEASE AND HEART DISEASE IN A MACHINE THE SIZE OF A DESKTOP COPIER CALLED A MICROTITER PLATE SPECTROPHOTOMETER THE EXTRACTS' EFFECT ON QUOTE SCREENS QUOTE CONTAINING BACTERIA ENZYMES AND DISEASE CAUSING D. N. A. IS MEASURED BY THE COLOR CHANGES OR CLOUDINESS THAT RESULT EACH YEAR PFIZER RUNS HUNDREDS OF THOUSANDS OF CHEMICALS MOSTLY SYNTHETIC THROUGH THE SCREENS AND GETS THOUSANDS OF HITS OR PROMISING RESULTS SAYS JAMES J. VALENTINE A PFIZER SENIOR SCIENTIST RESPONSIBLE FOR SCREENING THE NATURAL PRODUCTS A SYNTHETIC CHEMICAL CAN PROCEED TO MORE ADVANCED TESTING BECAUSE ITS EXACT STRUCTURE IS KNOWN BUT THE COMPOUNDS CONTAINED IN PLANT EXTRACTS THEIR STRUCTURE AND EVEN WHICH ONE CAUSED THE HIT ARE UNKNOWN THE RESEARCHERS SEARCH FOR CLUES TO THE COMPOUNDS' WEIGHT AND STRUCTURE BY EXPOSING THE EXTRACT TO ULTRAVIOLET LIGHT LASERS AND OTHER TESTS ALREADY THE NATURAL PRODUCTS LAB HAS FOUND A PROMISING COMPOUND FROM A PLANT THAT WAS USED BY AMERICAN INDIANS TO TREAT HEART TROUBLE FEVERS INFLAMMATION AND IMPOTENCE A TUMBLE IN BOND PRICES GAVE STOCK MARKET INVESTORS AN EXCUSE TO TAKE PROFITS AFTER THE RECENT RALLY THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SANK FOURTEEN POINT THREE FIVE POINTS TO THREE THOUSAND NINE HUNDRED SIXTY FOUR POINT OH ONE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX FELL ONE POINT NINE NINE TO FOUR HUNDRED SEVENTY NINE POINT SIX TWO AND THE NASDAQ COMPOSITE INDEX LOST THREE POINT TWO THREE TO SEVEN HUNDRED NINETY SEVEN POINT TWO FOUR ALL THREE HIT RECORD HIGHS ON MONDAY BOND PRICES WERE PUMMELED BY FURTHER SIGNS OF A STRENGTHENING ECONOMY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORTED A STRONGER THAN EXPECTED JUMP IN ITS INDEX OF MANUFACTURING ACTIVITY FOR JANUARY ANALYSTS SAID BOND TRADERS WERE ESPECIALLY CONCERNED ABOUT A SHARP RISE IN THE PRICE COMPONENT OF THE INDEX RAISING FEARS OF INFLATION ALSO THE COMMERCE DEPARTMENT SAID CONSTRUCTION SPENDING ROSE A BETTER THAN EXPECTED TWO POINT SIX PERCENT IN DECEMBER ANALYSTS ADDED THAT PERHAPS MOST TROUBLING TO BOND INVESTORS WAS THE UNEXPECTED ANNOUNCEMENT BY FEDERAL RESERVE BOARD VICE CHAIRMAN DAVID MULLINS THAT HE WILL RESIGN HIS POST THIS MONTH TO JOIN THE PRIVATE SECTOR HIS RESIGNATION LEAVES TWO VACANCIES WITH THE IMPENDING DEPARTURE OF FED GOVERNOR WAYNE ANGELL THIS MONTH FOLLOWING THE END OF HIS TERM IN JANUARY MICKEY D. LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK SAID BOND TRADERS REACTED NEGATIVELY BECAUSE THEY FEARED MR. MULLINS'S RESIGNATION GIVES THE CLINTON ADMINISTRATION A GREATER CHANCE TO INFLUENCE THE MAKEUP OF THE BOARD QUOTE MOST LIKELY MULLINS'S REPLACEMENT WILL BE MORE ALIGNED WITH THE ADMINISTRATION NOT ONLY ON BANK REGULATORY POLICY BUT ALSO ON MONETARY POLICY QUOTE MR. LEVY SAID SLUMPING BOND PRICES CARRIED STOCK PRICES LOWER AS INVESTORS LOCKED IN PROFITS FROM THE STOCK MARKET'S SHARP CLIMB OF THE PAST WEEK IN FOUR TRADING DAYS THROUGH MONDAY THE INDUSTRIAL AVERAGE HAD GAINED TWO POINT ONE PERCENT AMID YESTERDAY'S DECLINE ECONOMICALLY SENSITIVE STOCKS CONTINUED TO OUTPERFORM THE MARKET WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED ZERO POINT FOUR ONE TO ONE HUNDRED NINETEEN POINT OH ONE STOCK PRICES SLID VOLUME TOTALED THREE HUNDRED TWENTY TWO POINT FOUR MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND ONE HUNDRED FORTY EIGHT ISSUES FELL AND NINE HUNDRED SIXTY ONE ROSE BOND PRICES PLUNGED THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE LOST MORE THAN ONE POINT OR MORE THAN TEN DOLLARS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT THREE ONE PERCENT THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN THREE TWO OH MARKS AND ONE HUNDRED SEVEN POINT SEVEN OH YEN COMPARED WITH ONE POINT SEVEN THREE FOUR FIVE MARKS AND ONE HUNDRED EIGHT POINT SEVEN OH YEN MONDAY JOHN J. LEE CHAIRMAN OF THIS MANUFACTURER OF HIGH TECH MATERIALS WAS NAMED SOLE CHIEF EXECUTIVE OFFICER AND ROBERT D. KRUMME WAS NAMED VICE CHAIRMAN THEY SUCCEED JOHN L. DOYLE WHO RESIGNED FROM BOTH POSITIONS BUT REMAINS A DIRECTOR HEXCEL'S BOARD ALSO ELECTED THREE DIRECTORS EXPANDING THE BOARD TO TEN THEY ARE MR. KRUMME CHARLES A. LYNCH CHAIRMAN OF GREYHOUND LINES INCORPORATED AND CHAIRMAN OF MARKET VALUE PARTNERS COMPANY AND DONALD J. O'MARA HEXCEL'S PRESIDENT AND CHIEF OPERATING OFFICER ALAN POTTASCH IS ALMOST WHISPERING AS HE SPEAKS THE MAN WHO SPENT ALMOST THIRTY FIVE YEARS SHAPING THE ADS FOR PEPSICO'S FLAGSHIP PEPSI COLA BRAND IS OFFERING A CANDID ASSESSMENT OF ITS CURRENT QUOTE BE YOUNG HAVE FUN DRINK PEPSI CAMPAIGN IT TARGETS KIDS FIFTEEN YEARS OLD AND YOUNGER SAYS MR. POTTASCH AS A MAJOR SOFT DRINK PRODUCT YOU SHOULDN'T ALIENATE ANYBODY WHAT MAKES HIS COMMENT ESPECIALLY NOTEWORTHY IS THE FACT THAT MR. POTTASCH ISN'T A FORMER EXECUTIVE WITH A VENDETTA AGAINST PEPSICO HARDLY RATHER MR. POTTASCH IS ON THE INSIDE AND SAYS HE HAS THE GREATEST JOB IN THE ENTIRE WORLD TWO YEARS AFTER A VOLUNTARY RETIREMENT THE MAN WHO APPROVED THE MUCH LAUDED PEPSI GENERATION CAMPAIGN IN NINETEEN SIXTY THREE AND LED YEARS OF SUBSEQUENT MEMORABLE COMMERCIALS IS BACK AT PEPSI IN SOMERS N. Y. HIS NEW RESPONSIBILITIES INCLUDE ADVERTISING FOR PEPSI COLA INTERNATIONAL INTERNATIONAL ADVERTISING FOR KENTUCKY FRIED CHICKEN AND DOMESTIC ADVERTISING FOR THE FRITO LAY DIVISION HE WAS PART OF THE TEAM THAT WORKED ON THE WAVY LAY'S CHIP AD FEATURING FORMER VICE PRESIDENT DAN QUAYLE THAT WAS SHOWN ON THE SUPER BOWL BUT IT IS THE DOMESTIC ADVERTISING THAT CAUSES MR. POTTASCH AN AFFABLE SIXTY SEVEN YEAR OLD TO SHAKE HIS HEAD THE SOFT DRINK MANUFACTURER IS QUOTE TURNING OFF PEOPLE FORTY YEARS OLD AND UP QUOTE HE SAYS REFERRING TO THE VERY LARGE FIRST WAVE OF BABY BOOMERS SOME OF PEPSI'S ADS STRIKE MR. POTTASCH AS JUST PLAIN CURIOUS ONE AD SHOWN DURING THE SUPER BOWL FEATURED MODEL CINDY CRAWFORD BEING DEPRIVED OF PEPSI FOR A MONTH AND AS A RESULT TURNING INTO RODNEY DANGERFIELD THAT ENDED ON A DOWNER HE SAYS IT MIGHT HAVE BEEN MORE EFFECTIVE TO HAVE RODNEY DANGERFIELD DRINK NOTHING BUT PEPSI AND AFTER A TIME TURN INTO CINDY CRAWFORD THAT IS UPLIFTING HE SAYS PEPSI DECLINES TO COMMENT ON MR. POTTASCH'S ASSESSMENT REFERRING CALLS TO PHILIP B. DUSENBERRY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF OMNICOM GROUP'S B. B. D. O. NEW YORK PEPSI'S AD AGENCY ALAN AND I HAVE WORKED TOGETHER FOR A GREAT MANY YEARS MR. DUSENBERRY SAYS WE'RE IN THE MIDST OF BREAKING NEW GROUND ON OUR GLOBAL MARKETING FOR PEPSI COLA AND WE JUST RECENTLY COMPLETED SOME TERRIFIC SPOTS FOR FRITO LAY QUOTE MR. DUSENBERRY ONE OF MR. POTTASCH'S CLOSE FRIENDS DECLINES TO COMMENT FURTHER MR. POTTASCH IS TAKING SOME SATISFACTION THAT ONE OF THE ADS HE WAS INVOLVED WITH WAS ORIGINALLY SUPPOSED TO BE SHOWN ONLY IN FOREIGN COUNTRIES BUT THE AD STARRING A CHIMP WHO DRINKS PEPSI AS PART OF A LABORATORY EXPERIMENT AND WINDS UP ESCAPING TO CAVORT WITH YOUNG FEMALE HUMANS ON A BEACH APPEARED DURING THE SUPER BOWL AND HAS BECOME PART OF PEPSI'S DOMESTIC ROTATION BY ALL ACCOUNTS MR. POTTASCH SHOULD BE ENJOYING RETIREMENT HE HAS A HOUSE IN THE CAYMAN ISLANDS HE IS A SCUBA DIVING INSTRUCTOR HE FLIES AN ANTIQUE NINETEEN FORTY SIX J. THREE CUB AIRPLANE NEAR HIS HOME IN RURAL CONNECTICUT AND HE HAS A FOUR YEAR OLD DAUGHTER AS WELL AS THREE GROWN CHILDREN YET ONE GETS THE SENSE THAT HE LOVES THE BARE KNUCKLES AD WAR BETWEEN PEPSI AND ARCHRIVAL COCA COLA IT WAS CHRIS SINCLAIR PRESIDENT AND CHIEF EXECUTIVE OF PEPSICO'S FOODS AND BEVERAGES INTERNATIONAL WHO CALLED TO COAX MR. POTTASCH BACK TO WORK MR. POTTASCH TAKES A VERY BASIC VIEW OF ADVERTISING HIS PRODUCT WE DON'T HAVE A COMPLICATED MESSAGE HE SAYS TOO OFTEN MARKETING EXECUTIVES WANT TO GET TOO CEREBRAL WITH A MESSAGE INSTEAD OF APPEALING EMOTIONALLY MY PHILOSOPHY IS SIMPLY SHOW ME SOMEONE WITH A MOUTH AND I'LL SHOW YOU A CUSTOMER ADS HE SAYS SHOULD CONSIST OF THE SELLING MESSAGE AND SOME ENTERTAINMENT TO PAY THE GUY OFF FOR LISTENING MR. POTTASCH HAS BEEN APPEALING TO U. S. CONSUMERS SINCE HE JOINED PEPSI IN NINETEEN FIFTY NINE AFTER A STINT AS A VICE PRESIDENT OF KENYON AND ECKHARDT THE AD AGENCY THAT IS NOW PART OF BOZELL JACOBS KENYON AND ECKHARDT MR. POTTASCH HAD BEEN A DIRECTOR AT A. B. C. AND IN THE LATE NINETEEN FORTIES WORKED AT A DALLAS TELEVISION STATION AS A PRODUCER AND DIRECTOR IT WAS IN HIS EARLY DAYS AT PEPSI THAT THE COMPANY REALIZED IT COULD NEVER COMPETE WITH COKE'S ALL AMERICAN IMAGE SAYS MR. POTTASCH SO WE CHOSE TO HAVE A FOCUS WHERE THE ADVERTISING WAS THE CONSUMER NOT THE PRODUCT SUCH A PHILOSOPHY LED TO CAMPAIGNS FOR PEPSI INCLUDING QUOTE NOW IT'S PEPSI FOR THOSE WHO THINK YOUNG QUOTE IN NINETEEN SIXTY WHICH RESEMBLES THE NINETEEN NINETY FOUR SLOGAN QUOTE COME ALIVE YOU'RE IN THE PEPSI GENERATION YOU'VE GOT A LOT TO LIVE AND PEPSI'S GOT A LOT TO GIVE AND PEPSI THE CHOICE OF A NEW GENERATION IN FACT ONE OF PEPSI'S FEW MISFIRES DURING ITS GOLDEN ADVERTISING ERA CAME WHEN PEPSI DISPATCHED MR. POTTASCH TO JAPAN TO HEAD ITS OPERATIONS IN THE FAR EAST IN THE LATE NINETEEN SIXTIES THEN PEPSI CHANGED ITS CAMPAIGN TO TASTE THAT BEATS THE OTHERS COLD PEPSI POURS IT ON MR. POTTASCH DECLINES TO CRITICIZE THE CAMPAIGN BUT OTHER EXECUTIVES CLOSE TO THE SITUATION SAY THAT RESEARCH SHOWED CONSUMERS PREFERRED THE PEPSI GENERATION ADS HE SAYS HE IS GLAD HE HAS NOTHING TO DO WITH PEPSI'S CURRENT DOMESTIC ADVERTISING AND WANTS TO EMPHASIZE THAT HIS CRITICISM IS NOT MEANT TO CAUSE RESENTMENT OR ILL FEELINGS WITHIN THE COMPANY HE CLEARLY LOVES BUT MR. POTTASCH ALMOST CAN'T HELP TALKING ABOUT THE CURRENT PEPSI ADS IN THE U. S. DURING A NINETY MINUTE BREAKFAST CONVERSATION YESTERDAY HE OFTEN HAD TO FORCE HIMSELF TO STOP IN MID SENTENCE WHEN DISCUSSING PEPSI'S ADS AS FOR COKE'S ADS PRODUCED BY CREATIVE ARTISTS AGENCY MR. POTTASCH IS UNIMPRESSED QUOTE ALL THOSE HEADLINES AND ALL THAT PUBLICITY QUOTE HE SAYS QUOTE AND ALL THEY HAVE LEFT IS THE POLAR BEARS COKE HAS GOTTEN AWAY FROM THE AMERICANA THAT MADE IT SO POPULAR FOR DECADES COKE DECLINED TO COMMENT ON HIS VIEW MR. POTTASCH SAYS HE IS GRATIFIED THAT HIS NEW INTERNATIONAL SPOT WITH THE CHIMP IS ALREADY CAUSING WAVES IN GREECE A TELEVISION NETWORK PULLED THE SPOT COMPARATIVE ADVERTISING IS BANNED OR RESTRICTED IN SOME OVERSEAS COUNTRIES THIS IS GREAT SAYS MR. POTTASCH A FEW YEARS AGO JAPAN PULLED AN AD FEATURING RAP SINGER M. C. HAMMER BECAUSE IT FEATURED COKE AS WELL WELL WE TOLD PEOPLE TO WRITE TO US AND WE WOULD SEND THEM THE BANNED AD THE RESPONSE ONE HUNDRED THOUSAND VIDEOTAPES WERE SENT I LOVE THIS HE SAYS QUOTE TO ME LIVING IS DOING QUOTE RADIO AD REVENUE REBOUNDED NINE PERCENT TO NINE POINT FIVE SEVEN BILLION DOLLARS IN NINETEEN NINETY THREE FROM EIGHT POINT SEVEN SIX BILLION DOLLARS IN NINETEEN NINETY TWO ACCORDING TO THE RADIO ADVERTISING BUREAU AN INDUSTRY GROUP MADE UP OF RADIO STATIONS NETWORKS AND SALES COMPANIES THE INCREASE MARKS THE RADIO BUSINESS'S BEST YEAR SINCE NINETEEN EIGHTY FIVE WHEN GROWTH WAS ALMOST TWELVE PERCENT IT WAS A FLAT MARKET IN NINETEEN NINETY TWO WHEN REVENUES INCHED UP JUST TWO PERCENT IN NINETEEN NINETY ONE INDUSTRY REVENUES DECLINED TWO POINT EIGHT PERCENT THE FIRST DECLINE SINCE NINETEEN SIXTY ONE THE BUREAU SAID REVENUE GROWTH IN NINETEEN NINETY FOUR IS MATCHING GROWTH IN NINETEEN NINETY THREE LOCAL RADIO ADS WHICH MAKE UP ABOUT THREE FOURTHS OF ALL RADIO AD REVENUE WERE UP ABOUT NINE PERCENT IN NINETEEN NINETY THREE NATIONAL SPOT ADS OR THOSE LOCAL ADS PURCHASED BY NATIONAL ADVERTISERS GREW TEN PERCENT AND AD REVENUES ON RADIO NETWORKS GREW EIGHT PERCENT SAATCHI AND SAATCHI COMPANY THE BRITISH AGENCY HOLDING COMPANY SOLD ITS HALL HARRISON COWLEY GROUP AGENCY FOR ONE POINT FIVE MILLION TWO POINT THREE MILLION DOLLARS IN STOCK AND CASH TO A COMPANY FORMED BY THE MANAGEMENT OF HALL HARRISON SAATCHI SAID IT WILL RECEIVE NINE HUNDRED THOUSAND IN REDEEMABLE PREFERENCE SHARES IN THE NEW COMPANY AND SIX HUNDRED THOUSAND IN CASH HALL HARRISON A REGIONAL U. K. ADVERTISING AND PUBLIC RELATIONS AGENCY IS WELL ESTABLISHED AND PROFITABLE SAATCHI SAID IT IS NOT HOWEVER CONSIDERED BY SAATCHI TO BE WITHIN THE COMPASS OF ITS CORE BUSINESS SAATCHI SAID OLYMPIC SPONSORSHIP BAUSCH AND LOMB ROCHESTER N. Y. HAS JOINED THE CROWD OF SPONSORS OF U. S. FIGURE SKATER NANCY KERRIGAN THE COMPANY'S RAY BAN SUNGLASSES UNIT SAID IT SIGNED A TWO YEAR AGREEMENT WITH MS. KERRIGAN UNDER WHICH SHE WILL WEAR RAY BANS DURING APPEARANCES OFF THE ICE NORM SALIK VICE PRESIDENT OF BAUSCH AND LOMB'S EYEWEAR DIVISION SAID HER ROLE IN ADVERTISING WOULD BE LIMITED TO A CONGRATULATORY PRINT AD IF SHE WINS A MEDAL AT THE LILLEHAMMER GAMES ACCOUNT THE DALLAS OFFICE OF BLOOM F. C. A. A UNIT OF FRENCH AGENCY PUBLICIS SAID IT WON AN AD ASSIGNMENT FOR A NEW WOOD FINISH PRODUCT ACQUIRED BY ARMOR ALL PRODUCTS CORPORATION AN ALISO VIEJO CALIFORNIA UNIT OF MCKESSON CORPORATION FOOTE CONE AND BELDING CONTINUES TO HANDLE ARMOR ALL'S BIG CAR PRODUCT ACCOUNT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE S. E. C. AND OTHER REGULATORS BY THE TENTH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPEN MARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN TWO DOLLARS A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED C. B. CHAIRMAN P. PRESIDENT D. DIRECTOR V. P. VICE PRESIDENT O. OFFICER Z. OTHER TIDEWATER INCORPORATED SAID IT WILL BUY BACK SIXTY THOUSAND SHARES OF ITS COMMON STOCK COMMISSION FREE FROM HOLDERS OF FEWER THAN ONE HUNDRED SHARES THE COMPANY SAID IT WILL PAY A PER SHARE PRICE DETERMINED BY THE AVERAGE CLOSING MARKET PRICE FOR THE STOCK FROM FEBRUARY FIRST THROUGH MARCH FOURTH NINETEEN NINETY FOUR INCLUSIVE SHAREHOLDERS COMMUNICATIONS CORPORATION WILL MANAGE THE PROGRAM WHICH IS OPEN TO HOLDERS OF RECORD FEBRUARY FIRST AND EXPIRES MARCH FOURTH A SPOKESWOMAN FOR TIDEWATER AN OWNER AND OPERATOR OF VESSELS THAT SERVICE THE OIL INDUSTRY SAID THE PROGRAM PROVIDES AN INEXPENSIVE WAY FOR SMALL SHAREHOLDERS TO SELL THEIR STOCK AND SAVES THE COMPANY MONEY ASSOCIATED WITH SERVICING THEIR ACCOUNTS IN A POLICY CHANGE THAT WILL BROADEN THE FLOW OF SPACE LAUNCH TECHNOLOGY INTO THE U. S. THE CLINTON ADMINISTRATION HAS DECIDED TO ALLOW IMPORTS OF EQUIPMENT FROM ISRAEL DERIVED FROM ISRAEL'S BALLISTIC MISSILE PROGRAM ACCORDING TO A STATE DEPARTMENT OFFICIAL THE EARLIER PROHIBITION AGAINST THE ISRAELI TECHNOLOGY WAS DROPPED BECAUSE THE ADMINISTRATION CONCLUDED THAT SUCH IMPORTS INVOLVE QUOTE NO PROLIFERATION RISKS QUOTE U. S. COMPANIES NOW MAY IMPORT ISRAEL'S SPACE LAUNCH VEHICLE CALLED THE SHAVIT WHICH IS CAPABLE OF PLACING SMALL SATELLITES INTO ORBIT THE OFFICIAL SAID SOME PROLIFERATION EXPERTS CRITICIZE THE CHANGE BECAUSE THE SHAVIT IS THE CIVILIAN VERSION OF THE JERICHO THE SECOND MISSILE WHICH WAS DEVELOPED SECRETLY IN THE NINETEEN SEVENTIES TO CARRY NUCLEAR WARHEADS IMPROVED VERSIONS HAVE A RANGE OF THREE THOUSAND MILES THE MISSILE IS THOUGHT TO HAVE BEEN DEVELOPED IN PART FROM U. S. AND FRENCH TECHNOLOGY IF THEY THE ISRAELIS CAN COMMERCIALIZE THE MISSILE IT CUTS DOWN THEIR PER UNIT COSTS WHAT WE'RE THE U. S. DOING IS PUTTING DOLLARS INTO A PROLIFERANT COUNTRY'S MISSILE PROGRAM FOR THE FIRST TIME SAID GARY MILHOLLIN DIRECTOR OF THE WISCONSIN PROJECT ON NUCLEAR ARMS CONTROL THE DEAL THAT PROVOKED THE POLICY SHIFT INVOLVES ATLANTIC RESEARCH CORPORATION A UNIT OF SEQUA CORPORATION OF NEW YORK ACCORDING TO ISRAELI DIPLOMATS WHO ASKED NOT TO BE IDENTIFIED ATLANTIC RESEARCH IS IMPORTING A SO CALLED APOGEE KICK MOTOR FROM RAFAEL ARMAMENT DEVELOPMENT AUTHORITY WHICH IS PART OF ISRAEL'S DEFENSE MINISTRY THE MOTOR PART OF THE SHAVIT EQUIPMENT IS CONSIDERED SENSITIVE TECHNOLOGY BECAUSE IT GIVES A SATELLITE OR OTHER ROCKET PAYLOAD SUCH AS A WARHEAD THE FINAL PRECISE BOOST ON ITS JOURNEY ACCORDING TO THE ISRAELIS ATLANTIC RESEARCH IS BUYING THE RIGHTS TO MANUFACTURE THE MOTOR IN THE U. S. UNDER ISRAELI LICENSE A SPOKESWOMAN FOR ATLANTIC RESEARCH SAID THE U. S. POLICY SHIFT WILL GIVE U. S. COMPANIES ACCESS TO ISRAELI TECHNOLOGY THAT IS WELL SUITED TO A NEW CLASS OF SMALL COMMERCIAL SATELLITE LAUNCH VEHICLES SHE SAID THE COMPANY HAS WORKING AGREEMENTS WITH TWO ISRAELI COMPANIES THAT MANUFACTURE THE EQUIPMENT RAFAEL AND TAAS ISRAEL INDUSTRIES THE CHANGE IN U. S. IMPORT POLICY WAS CONVEYED TO ISRAEL'S PRIME MINISTER YITZHAK RABIN IN A LETTER FROM PRESIDENT CLINTON ON JANUARY SIXTEENTH THE STATE DEPARTMENT OFFICIAL SAID THE SHIFT MIGHT PERMIT IMPORTS OF SPACE TECHNOLOGY FROM OTHER COUNTRIES CURRENTLY THE U. S. IMPORTS VERY LITTLE SPACE TECHNOLOGY HOWEVER IT IS PLANNING TO IMPORT ROCKET MOTORS AND OTHER ITEMS FROM RUSSIA AS PART OF A COLLABORATION ON THE SPACE STATION PROJECT THE SHAVIT DEAL ACCORDING TO AN ISRAELI DIPLOMAT WILL EVENTUALLY ALLOW ISRAEL TO COMPETE IN THE LUCRATIVE U. S. SPACE LAUNCH MARKET HENRY SOKOLSKI WHO WORKED ON MISSILE PROLIFERATION PROBLEMS FOR THE BUSH ADMINISTRATION SAID ISRAEL'S CAMPAIGN TO SELL ITS SPACE LAUNCH TECHNOLOGY IN THE U. S. BEGAN AT LEAST THREE YEARS AGO AND HAS PROVOKED MUCH INTERNAL OPPOSITION IN THE STATE AND DEFENSE DEPARTMENTS THIS HAS A POLICY PROFILE THAT I DON'T THINK WILL BE WELCOME TO DIPLOMATS WHO ARE TRYING TO PREVENT THE PROLIFERATION OF MISSILE TECHNOLOGY IN THE MIDDLE EAST ASSERTED MR. SOKOLSKI WHO SAYS THE NEW POLICY RUNS AGAINST THE SPIRIT OF THE MISSILE TECHNOLOGY CONTROL REGIME UNDER WHICH THE U. S. AND SEVERAL INDUSTRIAL NATIONS ARE ATTEMPTING TO CONTAIN THE SPREAD OF MISSILE RELATED ITEMS BY SUBSIDIZING THE MISSILE PROGRAM OF ISRAEL WHICH ISN'T A MEMBER OF THE GROUP THE U. S. APPEARS TO BE UNDERMINING THE POLICY HE SAID THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED DEVELOPING A PLAN FOR QUOTE REDUCING OR PROHIBITING QUOTE THE DISCHARGE OF CHLORINE AND CHLORINATED COMPOUNDS INTO BODIES OF WATER THE PROPOSED STUDY WHICH SURPRISED AND DELIGHTED ENVIRONMENTALISTS WAS ONE OF SEVERAL ADMINISTRATION RECOMMENDATIONS ON HOW TO REWRITE THE CLEAN WATER ACT A SENATE SUBCOMMITTEE IS EXPECTED TO CONSIDER CLEAN WATER LEGISLATION TODAY THE ADMINISTRATION ENDORSED A NUMBER OF OTHER PROVISIONS IN THE BILL INCLUDING ONES TO INCREASE FEDERAL FUNDS FOR STATE EFFORTS TO IMPROVE WATER SYSTEMS REVERSE A NINETEEN EIGHTY SEVEN SUPREME COURT DECISION LIMITING THE SCOPE OF LAWSUITS BROUGHT BY CITIZENS AGAINST INDUSTRIES THAT HAVE VIOLATED THE CLEAN WATER LAW GIVE STATES AND CITIES MORE FLEXIBILITY IN COMPLYING WITH FEDERAL CONTROLS ON THE DISCHARGE OF STORM WATER AND SEWAGE AND ESTABLISH A NEW PROGRAM CRAFTED LARGELY BY THE STATES TO REDUCE RUNOFF OF PESTICIDES AND OTHER POLLUTANTS FROM FARMS CHLORINE WHICH IS WIDELY USED IN THE MANUFACTURE OF PULP AND PAPER IS AN ISSUE OF GROWING CONCERN TO ENVIRONMENTALISTS ITS BYPRODUCTS INCLUDE DIOXIN AND OTHER ORGANOCHLORINES WHICH MAY CAUSE HEALTH EFFECTS RANGING FROM CANCER TO BIRTH DEFECTS AN E. P. A. OFFICIAL SAID THE PROPOSED STUDY WOULD DIFFER FROM A CURRENT AGENCY REVIEW OF THE HEALTH EFFECTS OF DIOXIN BECAUSE IT WOULD TAKE INTO ACCOUNT HOW CHLORINE AND CHLORINATED COMPOUNDS ARE USED BY INDUSTRY AND THE DEGREE TO WHICH THE PUBLIC IS EXPOSED TO THE CHEMICALS THIS IS THE FIRST TIME WE'VE BEEN ABLE TO GIVE UNQUALIFIED PRAISE TO THE ADMINISTRATION SINCE THEY TOOK OFFICE SAID RICK HIND LEGISLATIVE DIRECTOR OF THE GREENPEACE TOXICS CAMPAIGN ENVIRONMENTALISTS WERE CRITICAL IN THE FALL WHEN THE ADMINISTRATION DROPPED A PROPOSAL TO REDUCE FEDERAL USE OF CHLORINE BLEACHED PAPER UNDER THE ADMINISTRATION PROPOSAL A TASK FORCE TO EXAMINE THE HEALTH EFFECTS OF CHLORINE AND CHLORINATED COMPOUNDS WOULD BE CONVENED WITHIN SIX MONTHS AFTER A REVISED CLEAN WATER BILL IS PASSED THE STUDY ALSO WOULD EXAMINE THE IMPACT OF THE CHEMICALS ON WILDLIFE THE E. P. A. SAID AFTER REVIEWING THE TASK FORCE'S STUDY THE E. P. A. ADDED THE E. P. A. ADMINISTRATOR SHOULD CONSIDER ANY NUMBER OF APPROPRIATE ACTIONS INCLUDING RESTRICTING OR PROHIBITING USE OF CHLORINE AND CHLORINATED COMPOUNDS UNDER THE PROPOSAL THE E. P. A. ADMINISTRATOR WOULD BE REQUIRED TO MAKE THIS DECISION WITHIN THIRTY MONTHS OF THE CLEAN WATER BILL'S PASSAGE ALTHOUGH CHLORINE IS WIDELY USED TO TREAT DRINKING WATER ENVIRONMENTALISTS HAVE FOCUSED THEIR CONCERNS ABOUT HEALTH EFFECTS ON WASTE WATER DISCHARGES OF THE CHEMICAL BY MANUFACTURERS WHICH END UP IN THE FOOD CHAIN THROUGH FISH AND OTHER ANIMALS A SENATE SUBCOMMITTEE WILL VOTE TODAY ON A CLEAN WATER BILL SPONSORED BY SENATOR BOB GRAHAM D. FLORIDA THE GRAHAM BILL DOESN'T INCLUDE THE CHLORINE PROVISION AT A NEWS CONFERENCE YESTERDAY HOWEVER E. P. A. ADMINISTRATOR CAROL BROWNER SENATOR GRAHAM AND OTHER KEY LAWMAKERS ALL SAID THEY WERE IN AGREEMENT ABOUT MOST PARTS OF THE BILL INDEED SENATOR GRAHAM'S BILL WAS DEVELOPED IN CONSULTATION WITH THE E. P. A. AND MOST OF YESTERDAY'S RECOMMENDATIONS DUPLICATE PROVISIONS IN THE BILL THERE IS NOT ANY PHILOSOPHICAL DIFFERENCE HERE SAID MS. BROWNER UNDER BOTH THE E. P. A. RECOMMENDATIONS AND MR. GRAHAM'S BILL THE COST OF THE CLEAN WATER LAW TO INDUSTRY AND GOVERNMENT WOULD INCREASE TO SEVENTY BILLION DOLLARS A YEAR ACCORDING TO THE E. P. A. THIS IS TEN BILLION DOLLARS MORE THAN THE ESTIMATED CURRENT COST BUT THE E. P. A. FIGURES THAT IF THE LAW ISN'T CHANGED THE COST WILL RISE TO ONE HUNDRED BILLION DOLLARS A YEAR IN THE NEAR FUTURE THE E. P. A. PLAN AND SENATOR GRAHAM'S BILL ALSO WOULD EXTEND A STATE REVOLVING LOAN FUND THROUGH SEPTEMBER TWO THOUSAND FOUR AT AS MUCH AS TWO BILLION DOLLARS A YEAR THE FUND WHICH IS DUE TO EXPIRE THIS YEAR IS USED BY STATE AND LOCAL GOVERNMENTS TO BUILD WASTE WATER TREATMENT PLANTS A SEPARATE PROVISION IN BOTH SENATOR GRAHAM'S BILL AND THE E. P. A. PLAN WOULD OVERTURN A NINETEEN EIGHTY SEVEN SUPREME COURT RULING THAT THE LAW ALLOWED COMMUNITIES TO SUE BUSINESS ONLY FOR EXISTING VIOLATIONS OF THE CLEAN WATER ACT AND NOT FOR PAST ONES IN ADDITION FUNDING FOR GRANTS TO FARMERS AIMED AT REDUCING RUNOFF OF CHEMICALS WOULD INCREASE TO THREE HUNDRED MILLION DOLLARS FROM ONE HUNDRED THIRTY MILLION DOLLARS A YEAR THE BILL WOULD ALSO REQUIRE STATES TO DEVELOP METHODS FOR PROSECUTING FARMERS WHO DON'T COMPLY WITH THE CLEAN WATER LAW A SUBSIDIARY OF INSURER UNUM CORPORATION WILL BE AMONG THE FIRST CORPORATE INVESTORS TO BUY A STAKE IN LLOYD'S OF LONDON TO HELP RESCUE THE BRITISH INSURER FROM MOUNTING LOSSES DUNCANSON AND HOLT A NEW YORK BASED REINSURANCE UNDERWRITER WILL INVEST AT LEAST SIX MILLION DOLLARS TO BOLSTER THE FINANCES OF THE THREE HUNDRED YEAR OLD INSTITUTION UNUM SAID BY PLEDGING THE CAPITAL DUNCANSON AND HOLT WILL BE ABLE TO PARTICIPATE IN THE UNDERWRITING OF ABOUT TWICE THAT MUCH IN INSURANCE PREMIUMS M. C. SHIPPING INCORPORATED WHICH OWNS AND OPERATES SECOND HAND VESSELS SAID IT PLANS TO ACQUIRE MORE VESSELS WITH PROCEEDS FROM A RIGHTS OFFERING FOR THREE POINT ONE MILLION SHARES OF COMMON STOCK SHAREHOLDERS WILL RECEIVE THE RIGHT TO BUY A COMMON SHARE FOR EACH SHARE HELD AS OF THE RECORD DATE EXPECTED TO BE FEBRUARY NINTH THE SUBSCRIPTION PRICE IS EXPECTED TO BE AT A DISCOUNT TO A RECENT AVERAGE FOR THE SHARES WHICH HAVE TRADED BETWEEN THREE DOLLARS AND TWENTY FIVE CENTS AND FIVE POINT SIX TWO FIVE DOLLARS A SHARE IN THE LAST MONTH SHARES OF M. C. SHIPPING CLOSED UP TWENTY FIVE CENTS AT FIVE POINT SIX TWO FIVE DOLLARS ON MORE THAN FIVE TIMES AVERAGE VOLUME IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE SO WHY DID BILL CLINTON LET SINN FEIN LEADER GERRY ADAMS INTO THE UNITED STATES BRITISH FOREIGN SECRETARY DOUGLAS HURD SPOKE SEVERELY ABOUT THE DECISION YESTERDAY NORTHERN IRELAND IS ENGLAND'S MOST NEURALGIC PROBLEM SO IT'S MORE THAN A LITTLE DIFFICULT TO SEE HOW MR. CLINTON JUSTIFIES PICKING AT THAT SORE AND CAUSING THE BRITS PROBLEMS THEY DIDN'T ASK FOR PERHAPS PAT MOYNIHAN'S SUPPORT FOR ADMITTING MR. ADAMS AND HIS CRITICISM OF THE CLINTON HEALTH PLAN HAS A LITTLE TO DO WITH IT GLIMCHER REALTY TRUST SAID IT ACQUIRED A COMMERCIAL REAL ESTATE PORTFOLIO OF FORTY SIX SHOPPING CENTERS FROM CLOSELY HELD CONCORD ASSETS GROUP OF BOCA RATON FLORIDA TERMS WEREN'T DISCLOSED THE ACQUISITIONS WHICH COVER EIGHTEEN STATES INCLUDE THIRTY THREE COMMUNITY CENTERS TWELVE SINGLE TENANT RETAIL PROPERTIES AND ONE REGIONAL SHOPPING CENTER GLIMCHER SAID IT CLOSED ON THE ACQUISITION BY USING THE PROCEEDS FROM ITS JANUARY TWENTY SIXTH INITIAL PUBLIC OFFERING GLIMCHER SAID IT NOW OWNS A TOTAL OF SEVENTY FIVE PROPERTIES IN TWENTY STATES SOUTH KOREA'S TRADE BALANCE REGISTERED A DEFICIT OF FOURTEEN POINT SEVEN BILLION DOLLARS IN JANUARY ENDING THE PAST FOUR STRAIGHT MONTHS OF SURPLUSES AS A RESULT OF A HEFTY RISE IN IMPORTS THE MINISTRY OF TRADE INDUSTRY AND ENERGY SAID IN A PRELIMINARY REPORT THE MINISTRY SAID THAT THE NATION'S EXPORTS ROSE FOURTEEN PERCENT TO SIX POINT OH NINE BILLION DOLLARS IN JANUARY FROM FIVE POINT THREE THREE BILLION DOLLARS A YEAR EARLIER IMPORTS GAINED A HEFTY TWENTY PERCENT TO SEVEN POINT FIVE SIX BILLION DOLLARS FROM SIX POINT THREE OH BILLION DOLLARS THE YEAR EARLIER PEPSICO INCORPORATED POSTED A SIXTY SEVEN PERCENT GAIN IN FISCAL FOURTH QUARTER NET INCOME REFLECTING STRONGER DOMESTIC SNACK FOOD AND RESTAURANT SALES AND A RESTRUCTURING CHARGE A YEAR EARLIER THE PURCHASE N. Y. BEVERAGE FOOD AND RESTAURANT CONCERN SAID EARNINGS FOR THE QUARTER ENDED DECEMBER TWENTY FIFTH NINETEEN NINETY THREE ROSE TO FOUR HUNDRED FORTY TWO POINT FIVE MILLION DOLLARS OR FIFTY FIVE CENTS A SHARE FROM TWO HUNDRED SIXTY FIVE POINT SIX MILLION DOLLARS OR THIRTY TWO CENTS A SHARE A YEAR EARLIER THE NINETEEN NINETY TWO QUARTER INCLUDED RESTRUCTURING CHARGES OF ONE HUNDRED TWENTY EIGHT POINT FIVE MILLION DOLLARS OR SIXTEEN CENTS A SHARE FOURTH QUARTER SALES ROSE FOURTEEN PERCENT TO SEVEN POINT SEVEN TWO BILLION DOLLARS FROM SIX POINT EIGHT BILLION DOLLARS THE PER SHARE RESULTS FELL A COUPLE OF CENTS SHORT OF ANALYSTS' FORECASTS REFLECTING THE DILUTIVE EFFECT OF ACQUISITIONS DURING THE YEAR AND CONTINUED PROBLEMS WITH INTERNATIONAL RESTAURANT RESULTS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PEPSI CLOSED AT THIRTY NINE POINT SIX TWO FIVE DOLLARS A SHARE OFF SEVENTY FIVE CENTS IN SOFT DRINKS ANALYSTS SAID TRADITIONAL CARBONATED BEVERAGES ARE SHOWING SLUGGISH GROWTH BECAUSE OF A SHIFT AMONG CONSUMERS TO OTHER DRINKS BUT PEPSI'S BEVERAGE OPERATING PROFIT GREW TEN PERCENT LARGELY BECAUSE OF SALES OF ALTERNATIVE DRINKS SUCH AS LIPTON ICED TEA AND OCEAN SPRAY FRUIT DRINKS PEPSICO'S RESTAURANT BUSINESS SHOWED STRONG GROWTH IN U. S. MARKETS SALES AT OUTLETS OPEN AT LEAST A YEAR ROSE FIVE PERCENT AT PIZZA HUT TEN PERCENT AT K. F. C. AND SEVEN PERCENT AT TACO BELL K. F. C. WHICH HAD BEEN A DISAPPOINTMENT TO ANALYSTS HAD ITS BEST QUARTER SINCE PEPSICO ACQUIRED IT IN NINETEEN EIGHTY SEVEN THANKS TO A ROTISSERIE CHICKEN PRODUCT WHICH APPEALS TO A DIFFERENT SEGMENT OF CONSUMERS THAN ITS TRADITIONAL FRIED MEALS QUOTE THAT PRODUCT MAY BRING IN MORE WHITE COLLAR SUBURBAN CUSTOMERS WHO KNOW THEIR CHOLESTEROL COUNTS QUOTE SAYS JOSEPH J. DOYLE ANALYST AT SMITH BARNEY SHEARSON INCORPORATED BUT PEPSICO IS STILL STRUGGLING WITH K. F. C.'S INTERNATIONAL BUSINESS FACING A CONTINUING DECLINE IN AUSTRALIA MCDONALD'S CORPORATION HAS ADOPTED ITS VALUE MENUS IN THAT MARKET SO K. F. C. MEALS ARE COMPARATIVELY OVERPRICED MR. DOYLE SAID THE SOFT PERFORMANCE OVERSEAS OFFSET THE STRONG DOMESTIC PERFORMANCE AT K. F. C. AS A RESULT K. F. C.'S FOURTH QUARTER PROFIT FELL SIXTEEN PERCENT PROFITS FOR ALL OF PEPSICO'S INTERNATIONAL RESTAURANT OPERATIONS FELL FORTY ONE PERCENT IN SNACK FOODS PEPSICO'S NEW DORITOS TORTILLA THINS ROLD GOLD PRETZELS AND OTHER PRODUCTS BOOSTED FOURTH QUARTER OPERATING PROFIT IN THAT SEGMENT BY TWELVE PERCENT I. C. N. PHARMACEUTICALS INCORPORATED SAID SHAREHOLDERS QUOTE OVERWHELMINGLY QUOTE VOTED TO BACK MILAN PANIC I. C. N.'S FOUNDER AND LONGTIME CHAIRMAN REBUFFING A TEN MONTH CAMPAIGN BY STOCKBROKER RAFI KHAN TO OUST MR. PANIC AND HIS BOARD THE DRUG HOLDING COMPANY SAID MORE THAN NINETY PERCENT OF THE VOTES CAST WENT TO THE MANAGEMENT SLATE BUT IT DECLINED TO GIVE A MORE SPECIFIC VOTE COUNT UNTIL THE FINAL VOTE IS TALLIED MR. PANIC PRESIDING CONFIDENTLY OVER THE ANNUAL MEETING IN THE COMPANY'S CAFETERIA HERE HAILED THE OUTCOME MR. PANIC RETURNED TO I. C. N. LAST YEAR AFTER A NINE MONTH STINT AS PRIME MINISTER OF WARTORN YUGOSLAVIA THE SHAREHOLDERS HAVE SPOKEN DEMONSTRATING THAT CAPITALISM TRULY FUNCTIONS MR. PANIC SAID HE SAID THE MARGIN IN HIS FAVOR WAS ONE OF THE LARGEST EVER IN A PROXY FIGHT INVOLVING A NEW YORK STOCK EXCHANGE LISTED COMPANY MOST OF THE TWO HOUR MEETING WAS A SALES PITCH FOR I. C. N. AND ITS THREE PUBLICLY TRADED AFFILIATES MR. KHAN WHO CLASHED WITH MR. PANIC ONLY BRIEFLY DURING THE TIGHTLY CONTROLLED MEETING CONCEDED DEFEAT BUT ANGRILY CHALLENGED THE VOTE TALLY HE CLAIMED TO HAVE CARRIED ABOUT TWO MILLION SHARES OR ABOUT SIXTEEN PERCENT OF THE TWELVE POINT FIVE MILLION SHARES I. C. N. SAID WERE CAST I. C. N. HAS TWENTY POINT FOUR MILLION SHARES OUTSTANDING AT A NEWS BRIEFING AFTER THE MEETING MR. PANIC DISMISSED THE APPARENT VOTE TALLY DISCREPANCY AS UNIMPORTANT AFTER THE MEETING MR. KHAN LASHED OUT AT THE PRESS FOR ALLEGED ERRORS THAT HE SAID DAMAGED HIS REPUTATION AND DISCREDITED HIM WITH SHAREHOLDERS I. C. N.'S THREE LARGEST INSTITUTIONAL INVESTORS INCLUDING INVESCO M. I. M. P. L. C. BASED IN LONDON WITH A SIX POINT FOUR PERCENT STAKE VOTED WITH MANAGEMENT PARTLY BECAUSE OF HIGHLY PUBLICIZED AND BASELESS ALLEGATIONS OF IMPROPER DEALINGS WITH HIM MR. KHAN SAID MR. KHAN SAID HIS SUPPORT CAME FROM SMALLER INSTITUTIONS WITH FIFTY THOUSAND TO TWO HUNDRED THOUSAND SHARES OF I. C. N. STOCK WHOSE NAMES HADN'T CROPPED UP IN REPORTS OF THE BITTER BATTLE HE DIDN'T IDENTIFY THEM WHEN MR. KHAN LAUNCHED HIS ATTACK ON I. C. N. MANAGEMENT LAST APRIL HE FREELY USED THE NAME OF INVESCO AND OTHER LARGE HOLDERS BOASTING THAT HE WOULD BE SHOCKED IF THEY DIDN'T SUPPORT HIM SEVERAL SHAREHOLDERS AT THE MEETING SAID THEY VOTED WITH MANAGEMENT BUT THOUGHT THAT MR. KHAN HAD RAISED SOME VALID CONCERNS ONE TEXAS INVESTOR THANKED MR. PANIC FOR HIS QUOTE HUMANITARIAN QUOTE EFFORTS IN YUGOSLAVIA BUT COMPLAINED THAT I. C. N. PRIVATE STOCK PLACEMENTS IN EUROPE LAST YEAR WEREN'T PROPERLY DISCLOSED ANOTHER HOLDER COMPLAINED THAT I. C. N. LACKED INDEPENDENT BOARD MEMBERS WITH STRONG BUSINESS BACKGROUNDS MR. PANIC DISAGREED WITH THAT ASSESSMENT HE INDICATED THAT THE COMPANY HAS AN EVEN STRONGER NEED FOR SCIENTIFIC ADVISERS ON THE BOARD WHO CAN HELP MAKE MAJOR STRATEGIC DECISIONS ABOUT DEVELOPMENT OF THE COMPANY'S RIBAVIRIN ANTIVIRAL DRUG AND OTHER DRUG RESEARCH SHAREHOLDERS RE ELECTED THE ENTIRE MANAGEMENT SLATE OF NINE DIRECTORS FOLLOWING THE SHAREHOLDERS MEETING DIRECTORS ELECTED A TENTH DIRECTOR MICHAEL SMITH A CHEMIST FROM THE UNIVERSITY OF BRITISH COLUMBIA VANCOUVER AND A NINETEEN NINETY THREE NOBEL PRIZE WINNER FOR CHEMISTRY DOCTOR SMITH'S ELECTION WAS A STEP TOWARD FULFILLING A PROMISE TO SHAREHOLDERS TO ADD TWO OUTSIDE DIRECTORS IN RECENT MONTHS THE COMPANY HAS STARTED A DIALOGUE WITH ITS SHAREHOLDERS THAT WILL CONTINUE MR. PANIC PLEDGED THE COMPANY HAS DELIBERATELY DECIDED NOT TO PROMOTE ITSELF MR. PANIC SAID AFTER GOVERNMENT CENSURE AND CRITICISM OF ITS ATTEMPTS TO PROMOTE RIBAVIRIN AS AN AIDS TREATMENT SEVERAL YEARS AGO MR. PANIC ALSO SAID I. C. N. HAS A FIVE YEAR GOAL OF BECOMING A WORLD CLASS PHARMACEUTICAL COMPANY UNDER THAT PLAN THE COMPANY'S FORTY TWO PERCENT OWNED S. P. I. PHARMACEUTICALS INCORPORATED AFFILIATE WOULD ACHIEVE TWO BILLION DOLLARS IN ANNUAL SALES A FOUR FOLD INCREASE FROM CURRENT ANNUAL SALES FOR S. P. I. OTHER I. C. N. AFFILIATES ARE VIRATEK INCORPORATED AND I. C. N. BIOMEDICALS INCORPORATED MUCH OF THE MEETING WAS DEVOTED TO UPBEAT FINANCIAL AND SCIENTIFIC PRESENTATIONS BY MR. PANIC AND OTHER EXECUTIVES FOR HIS PART MR. KHAN WOULDN'T SAY WHETHER HE INTENDS TO TRY AGAIN TO TAKE CONTROL OF THE I. C. N. BOARD HE SAID HE IS NEARLY BROKE AFTER HAVING SPENT ABOUT TWO MILLION DOLLARS ON HIS FIGHT TO REPLACE I. C. N. DIRECTORS WITH HIS OWN SLATE I. C. N. HAS SPENT CLOSE TO FOUR MILLION DOLLARS TO DEFEND ITSELF MR. PANIC SAID MR. KHAN NOW FACES LEGAL CHARGES OF PERJURY AND INSIDER TRADING IN A NEW YORK COURT CASE BROUGHT BY I. C. N. IN THE NEAR TERM MR. KHAN SAID QUOTE I WILL LOOK TO CLEAR MY NAME QUOTE RON KAPLAN VICE PRESIDENT OF SALES AND MARKETING WAS NAMED PRESIDENT OF THIS GIFT AND SNACK MAKER MR. KAPLAN TWENTY EIGHT YEARS OLD SUCCEEDS HIS FATHER WARREN KAPLAN FIFTY SIX HIS WIFE JUDITH KAPLAN REMAINS CHIEF EXECUTIVE OFFICER A COMPANY SPOKESPERSON SAID THE CHANGE FOLLOWS THE EXPIRATION OF THE SENIOR MR. KAPLAN'S EMPLOYMENT CONTRACT AND GIVES THE COMPANY A QUOTE MORE AGGRESSIVE LEADER QUOTE THE KAPLANS DECLINED FURTHER COMMENT ROBERT C. LOWES FORTY EIGHT YEARS OLD DEPUTY GROUP FINANCE DIRECTOR WAS NAMED CHIEF EXECUTIVE OFFICER OF GRANDMET FOODS EUROPE SUCCEEDING PETER THOMPSON WHO RESIGNED TWO ARKANSAS STATE AGENCIES RENTED SPACE IN AN OFFICE BUILDING AND A RENOVATED SERVICE STATION OWNED BY MADISON GUARANTY SAVINGS AND LOAN IN NINETEEN EIGHTY FIVE FOR A TOTAL OF SEVEN THOUSAND FOUR HUNDRED THIRTY TWO DOLLARS A MONTH AN ARTICLE MONDAY INCORRECTLY REPORTED THAT THE RENT ON THE SERVICE STATION ALONE TOTALED SEVEN THOUSAND FOUR HUNDRED THIRTY TWO DOLLARS MOUNT MITCHELL IN NORTH CAROLINA IS THE HIGHEST PEAK IN THE SOUTHEAST IN A PAGE ONE ARTICLE JANUARY TWENTY FIFTH ABOUT SKIING IN THE REGION BEECH MOUNTAIN WAS INCORRECTLY IDENTIFIED AS THE TALLEST POINT RATHER BEECH MOUNTAIN IS THE HIGHEST SKI AREA IN THE SOUTHEAST TRIARC COMPANIES' SHARES ARE TRADED ON THE NEW YORK STOCK EXCHANGE YESTERDAY'S ABREAST OF THE MARKET COLUMN INCORRECTLY SAID THE COMPANY'S STOCK IS TRADED ON THE AMERICAN STOCK EXCHANGE REPRESENTATIVE BOB LIVINGSTON OF LOUISIANA IS ONE OF THREE REPUBLICANS SEEKING DATA FROM THE SECURITIES AND EXCHANGE COMMISSION ABOUT HILLARY RODHAM CLINTON'S INVESTMENTS AN ARTICLE YESTERDAY INCORRECTLY CALLED HIM BOB LANCASTER UPJOHN COMPANY SAID WORLD WIDE SALES OF ITS HALCION SLEEPING PILL ROSE ONE PERCENT IN THE FOURTH QUARTER FROM A YEAR EARLIER AN ARTICLE YESTERDAY INCORRECTLY STATED THAT HALCION SALES WERE OFF ONE PERCENT FOR THE PERIOD THE FIRST TWO CLASSES OF A SOCIETY NATIONAL BANK TWO HUNDRED THIRTY FOUR POINT SEVEN MILLION DOLLAR STUDENT LOAN ASSET BACKED SECURITIES ISSUE HAVE NINE PERCENT SUBORDINATION THE BANK IS A UNIT OF SOCIETY CORPORATION THE SUBORDINATION IS THE PORTION OF THE ISSUE SET ASIDE TO PROTECT HOLDERS OF THE FIRST TWO CLASSES A ONE AND A TWO FROM LOSS THE HOLDERS OF THESE TWO CLASSES HAVE THE RIGHT TO RECEIVE PRINCIPAL AND INTEREST BEFORE THE HOLDERS OF THE THIRD CLASS B. ONE THE FIRST TWO CLASSES ARE FLOATING RATE NOTES AND THE THIRD CLASS IS FLOATING RATE CERTIFICATES IN FRIDAY'S NEW SECURITIES ISSUES COLUMN THE SUBORDINATION OF THE FIRST TWO CLASSES WAS MISSTATED AS TEN PERCENT AND THE THIRD CLASS WAS MISIDENTIFIED AS A THREE MONTGOMERY WARD AND COMPANY IN ITS FIRST MAJOR PURCHASE SINCE IT WENT PRIVATE IN NINETEEN EIGHTY EIGHT SAID IT AGREED TO BUY LECHMERE INCORPORATED AN APPLIANCE AND CONSUMER ELECTRONICS RETAILER BASED IN WOBURN MASSACHUSETTS THE ACQUISITION TAKES GENERAL MERCHANDISER MONTGOMERY WARD A STEP FURTHER IN ITS PLANS TO EXPAND ITS GEOGRAPHICAL REACH AND OPEN MORE SPECIALTY STORES MONTGOMERY WARD LAST MONTH SAID IT PLANNED TO OPEN SIX STORES THIS YEAR THAT SELL ONLY CONSUMER ELECTRONICS APPLIANCES AND FURNITURE DETAILS OF THE LECHMERE TRANSACTION FINALIZED LAST WEEKEND WEREN'T DISCLOSED AS BOTH COMPANIES ARE CLOSELY HELD BUT A SOURCE FAMILIAR WITH THE DEAL SAID MONTGOMERY WARD IS PAYING ABOUT SEVEN HUNDRED FIFTY MILLION DOLLARS MONTGOMERY WARD DID SAY IT WILL FINANCE THE DEAL PRIMARILY THROUGH BORROWINGS AND WILL ASSUME ABOUT ONE HUNDRED MILLION DOLLARS OF LECHMERE'S LONG TERM DEBT LECHMERE WHOSE TWENTY FOUR STORES GENERATED SALES OF EIGHT HUNDRED MILLION DOLLARS LAST YEAR WILL OPERATE AS A SEPARATE COMPANY UNDER ITS OWN NAME SAID MONTGOMERY WARD OFFICIALS ADDED THAT IT ISN'T YET KNOWN WHO IF ANY AMONG LECHMERE'S MANAGEMENT WILL STAY ON TO RUN THE COMPANY WHICH EMPLOYS ABOUT FIVE THOUSAND PEOPLE THE ACQUISITION WHICH IS EXPECTED TO BE COMPLETED BY EARLY APRIL WILL BRING SYNERGIES TO MONTGOMERY WARD ACCORDING TO CHAIRMAN BERNARD F. BRENNAN BOTH COMPANIES ARE MAJOR SELLERS OF APPLIANCES AND ELECTRONICS MONTGOMERY WARD THROUGH ITS ELECTRIC AVENUE STORES WITHIN STORES BUT MR. BRENNAN NOTED THAT LECHMERE ALSO IS STRONG IN AREAS IN WHICH MONTGOMERY WARD ISN'T SUCH AS HOUSEWARES HOME OFFICE PRODUCTS AND PRERECORDED MUSIC WHAT'S MORE MONTGOMERY WARD HAS ONLY FOURTEEN OF ITS THREE HUNDRED SIXTY STORES IN LECHMERE'S TERRITORY NEW ENGLAND AND UPSTATE NEW YORK OF THOSE ONLY FOUR ARE LOCATED IN MARKETS ALSO SERVED BY LECHMERE MR. BRENNAN SAID LECHMERE STANDS TO GAIN LEVERAGE WITH SUPPLIERS THROUGH MONTGOMERY WARD'S MORE FORMIDABLE BUYING POWER MONTGOMERY WARD EXPECTS TO ANNOUNCE NINETEEN NINETY THREE SALES OF SIX BILLION DOLLARS ALL TOLD THE COMPANIES OVERLAP IN PRODUCT CATEGORIES WHOSE COMBINED SALES AMOUNT TO FOUR BILLION DOLLARS HE SAID DESPITE THE SYNERGIES AND SYMMETRY BOTH COMPANIES ARE STRUGGLING WITH THE SAME PROBLEM INTENSE PRICE COMPETITION FROM APPLIANCE AND CONSUMER ELECTRONICS RETAILERS SUCH AS CIRCUIT CITY STORES INCORPORATED AND FRETTER INCORPORATED SUCH PRESSURES CONTRIBUTED TO THE MEAGER TWO PERCENT OPERATING EARNINGS GAIN MONTGOMERY WARD RECORDED IN THE FIRST THREE QUARTERS OF NINETEEN NINETY THREE QUOTE THE SOLUTION FOR ONE IS THE SOLUTION FOR THE OTHER QUOTE SAID STEVE HERMAN A SUDBURY MASSACHUSETTS RETAIL CONSULTANT HE ADDED THAT LECHMERE COULD BENEFIT FROM MR. BRENNAN'S WELL KNOWN ABILITY TO CUT COSTS AND REDUCE DEBT LECHMERE FACES THE ADDITIONAL CHALLENGE OF DOING BUSINESS IN NEW ENGLAND CLEARLY THE NEW ENGLAND ECONOMY IS NOT THE FASTEST GROWING IN THE COUNTRY SAID MONTGOMERY WARD'S MR. BRENNAN BUT I FIRMLY BELIEVE THAT IF YOU HAVE THE LOCATIONS THE DOMINANT MARKET SHARE AND THE NAME THEN YOU'RE GOING TO GET MORE THAN YOUR SHARE OF BUSINESS LECHMERE WAS TAKEN PRIVATE IN A NINETEEN EIGHTY NINE MANAGEMENT LED LEVERAGED BUYOUT THAT WAS FINANCED BY BERKSHIRE PARTNERS A BOSTON BUYOUT SPECIALIST MR. HERMAN THE RETAIL CONSULTANT SAID THE PRIVATE SALE TO MONTGOMERY WARD IS AN INDICATION THAT LECHMERE LACKS CONFIDENCE IN ITS ABILITY TO MAKE A SUCCESSFUL PUBLIC OFFERING MR. BRENNAN LED A THREE POINT EIGHT BILLION DOLLAR LEVERAGED BUYOUT OF MONTGOMERY WARD IN NINETEEN EIGHTY EIGHT TENNECO INCORPORATED SWUNG TO A PROFIT IN THE FOURTH QUARTER FROM A SIZABLE LOSS A YEAR AGO AFTER RESTRUCTURING CHARGES AND SAID IT ISN'T CURRENTLY PLANNING TO SELL ITS LARGEST UNIT THE CASE CORPORATION FARM EQUIPMENT MAKER TENNECO REPORTED FOURTH QUARTER NET INCOME OF ONE HUNDRED FIFTY MILLION DOLLARS OR EIGHTY THREE CENTS A SHARE COMPARED WITH A YEAR EARLIER LOSS OF EIGHT HUNDRED TWENTY SIX MILLION DOLLARS OR FIVE DOLLARS AND SIXTY THREE CENTS A SHARE THE MOST RECENT QUARTER'S RESULTS INCLUDE A GAIN OF TEN MILLION DOLLARS ON THE SALE OF CERTAIN ASSETS AND A GAIN OF TWENTY SEVEN MILLION DOLLARS FROM THE SALE OF CUMMINS ENGINE COMPANY STOCK THE NINETEEN NINETY TWO QUARTER INCLUDED A RESTRUCTURING CHARGE OF EIGHT HUNDRED FORTY THREE MILLION DOLLARS AND A LOSS OF TWELVE MILLION DOLLARS FROM A PENALTY FOR EARLY RETIREMENT OF DEBT REVENUE ROSE TWO PERCENT TO THREE POINT THREE EIGHT BILLION DOLLARS FROM THREE POINT THREE ONE BILLION DOLLARS DANA MEAD TENNECO'S PRESIDENT AND CHIEF OPERATING OFFICER SAID THAT TENNECO'S CASE DIVISION WHICH HAS STRUGGLED FINANCIALLY IN RECENT YEARS WAS THE BIGGEST CONTRIBUTOR TO THE IMPROVED YEARLY RESULTS POSTING OPERATING PROFIT OF EIGHTY TWO MILLION DOLLARS COMPARED WITH A LOSS OF TWO HUNDRED SIXTY MILLION DOLLARS BEFORE RESTRUCTURING CHARGES A YEAR AGO NEVERTHELESS MR. MEAD RESPONDED TO QUESTIONS ABOUT SPECULATION ON WALL STREET THAT TENNECO IS PLANNING TO SELL CASE BY SAYING QUOTE WE HAVE ALWAYS SAID WE'RE OPPORTUNISTIC QUOTE AND WANT TO QUOTE IMPROVE SHAREHOLDER VALUE QUOTE BUT HE ADDED WE HAVEN'T PUT IT ON THE BLOCK WE'RE NOT OUT PEDDLING IT HE ALSO SAID TENNECO HASN'T BEEN APPROACHED BY A PROSPECTIVE BUYER SOME SECURITIES ANALYSTS SAY A MORE LIKELY STRATEGY IS TO MAKE AN INITIAL PUBLIC OFFERING OF CASE OR TO SPIN IT OFF TO SHAREHOLDERS AS A SEPARATE COMPANY MR. MEAD DECLINED TO COMMENT ON THOSE OPTIONS RONALD BARONE A KIDDER PEABODY ANALYST SAID MY GUESS IS THAT IF THEY'RE EVER GOING TO DO ANYTHING WITH IT THIS WILL BE THE YEAR THEN THEY CAN USE THE PROCEEDS FOR HIGHER RETURN BUSINESSES SEPARATELY MR. MEAD SAID THAT MICHAEL WALSH TENNECO'S CHAIRMAN AND CHIEF EXECUTIVE CONTINUES RECOVERING FROM BRAIN SURGERY LAST WEEKEND HE SAID THAT ALTHOUGH IT'S UNCLEAR WHEN MR. WALSH WILL RETURN TO WORK WE EXPECT IT WILL BE WITHIN A REASONABLE PERIOD OF TIME FOR THE YEAR TENNECO REPORTED NET INCOME OF FOUR HUNDRED TWENTY SIX MILLION DOLLARS OR TWO DOLLARS AND FORTY FOUR CENTS A SHARE COMPARED WITH A LOSS OF ONE POINT THREE TWO BILLION DOLLARS OR NINE DOLLARS AND TWENTY NINE CENTS A SHARE A YEAR AGO THE MOST RECENT YEAR'S RESULTS INCLUDE A PENALTY OF TWENTY FIVE MILLION DOLLARS FROM EARLY RETIREMENT OF DEBT THE PREVIOUS YEAR'S RESULTS INCLUDE A RESTRUCTURING CHARGE OF EIGHT HUNDRED FORTY THREE MILLION DOLLARS AND A CHARGE OF SIX HUNDRED NINETY NINE MILLION DOLLARS FROM A CHANGE IN ACCOUNTING METHODS REVENUE EDGED UP TO THIRTEEN POINT TWO SIX BILLION DOLLARS FROM THIRTEEN POINT ONE FOUR BILLION DOLLARS TENNECO ALSO SAID IT EXPECTS TO TAKE A FIRST QUARTER CHARGE OF THIRTY NINE MILLION DOLLARS OR TWENTY TWO CENTS A SHARE FROM AN ACCOUNTING CHANGE FOR THE YEAR AGO FIRST QUARTER THE COMPANY HAD NET INCOME OF SEVENTY FOUR MILLION DOLLARS OR FORTY SIX CENTS A SHARE ON REVENUE OF THREE POINT TWO FIVE BILLION DOLLARS ENVIRONMENTAL REGULATORS IN THE NORTHEAST VOTED IN FAVOR OF ADOPTING STRINGENT CALIFORNIA STYLE VEHICLE EMISSIONS RULES THAT WOULD IN EFFECT REQUIRE THE SALE OF ELECTRIC CARS DEALING A SETBACK TO THE AUTO INDUSTRY AS A RESULT OF A VOTE BY REGULATORS MEETING IN WASHINGTON AN ORGANIZATION REPRESENTING TWELVE STATES AND THE DISTRICT OF COLUMBIA WILL PETITION THE ENVIRONMENTAL PROTECTION AGENCY TO IMPOSE A REGIONAL VEHICLE EMISSIONS PROGRAM SIMILAR TO THAT ADOPTED INDEPENDENTLY BY CALIFORNIA AMONG OTHER THINGS THE CALIFORNIA PROGRAM REQUIRES MAJOR AUTO MAKERS TO SELL ZERO EMISSION VEHICLES SUCH AS THOSE POWERED BY ELECTRICITY BEGINNING IN NINETEEN NINETY EIGHT THE AUTO INDUSTRY LED BY DETROIT'S BIG THREE HAS BEEN FIGHTING THE NORTHEAST REGULATORS' MOVE TOWARD FILING SUCH A PETITION ARGUING CHIEFLY AGAINST THE ZERO EMISSION VEHICLE ASPECTS YESTERDAY THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION SAID IT STANDS BY AN ALTERNATIVE PROPOSAL THAT IT OUTLINED LATE LAST YEAR THAT PROPOSAL CALLS FOR INTRODUCING VEHICLES THAT ARE CLEANER THAN CURRENTLY REQUIRED UNDER THE CLEAN AIR ACT BUT NOT ELECTRIC VEHICLES QUOTE WE STAND READY TO WORK WITH THE STATE REGULATORS TOWARD THE END OF ADOPTING SOMETHING THAT MEANS SOMETHING TO CONSUMERS QUOTE AN INDUSTRY SPOKESMAN SAID YESTERDAY THE NORTHEAST REGULATORS TOGETHER MAKE UP THE OZONE TRANSPORT COMMISSION A POLICY BOARD CREATED UNDER THE CLEAN AIR ACT TO ADDRESS THE REGION'S AIR QUALITY PROBLEMS EIGHT STATES AND THE DISTRICT OF COLUMBIA VOTED FOR THE PROPOSAL MORE THAN ENOUGH VOTES FOR IT TO MOVE AHEAD NOW THE RECOMMENDATION MOVES TO THE E. P. A. FOR A NINE MONTH EVALUATION PERIOD DURING WHICH SOME OF THE REGULATORS HOPE TO HEAR DIFFERENT ALTERNATIVE PROPOSALS FROM DETROIT EVEN THOUGH IT FOCUSES ON THE BENEFITS OF THE CALIFORNIA PROGRAM THE RECOMMENDATION OFFERS THE FULL FLEXIBILITY TO COME UP WITH AN ALTERNATIVE SAID TIM KEENEY THE COMMISSION'S VICE CHAIRMAN AND CONNECTICUT'S COMMISSIONER FOR ENVIRONMENTAL PROTECTION STILL STAUNCH SUPPORTERS OF CALIFORNIA'S ZERO EMISSION MANDATE HAILED THE NINE TO FOUR VOTE AS A STRONG VICTORY THOSE VOTING IN FAVOR INCLUDED STATES SUCH AS NEW YORK AND MASSACHUSETTS THOSE TWO STATES ALREADY HAVE PROGRAMS MODELED ON CALIFORNIA'S THAT HAVE INCURRED LAWSUITS FROM THE INDUSTRY I THINK THIS REALLY MOVES THE DEBATE OVER THE CAR OF THE TWENTY FIRST CENTURY FORWARD SAID DANIEL GREENBAUM COMMISSIONER FOR ENVIRONMENTAL PROTECTION IN MASSACHUSETTS THE BIG THREE HAVE OPPOSED THE NORTHEAST EFFORT BECAUSE OF ITS SALES MANDATE FOR ZERO EMISSION VEHICLES AN INITIATIVE THEY HAVE BEEN WORKING TO SQUELCH IN CALIFORNIA DETROIT EVEN OFFERED A COUNTERPROPOSAL THAT EXCLUDED ZERO EMISSION VEHICLES BUT IT FAILED TO GARNER WIDESPREAD SUPPORT TELEVISION BROADCASTERS ARE EXPECTED TO ASK CONGRESS TODAY TO LET THEM USE SOME OF THEIR SPECTRUM FOR OTHER PURPOSES INCLUDING SENDING DATA TO LAPTOP COMPUTERS FACSIMILE MACHINES AND PAGERS T. V. STATION OWNERS SAY THEY NEED CONGRESS'S HELP IN ORDER TO PROVIDE COMPETITION TO CABLE OPERATORS AND TELEPHONE COMPANIES FOR ADVANCED TELECOMMUNICATIONS SERVICES BUT THE BID FOR FLEXIBILITY IS ALREADY RAISING HACKLES AMONG OPPONENTS WHO SAY THE PUBLIC SHOULD GET A CHANCE TO ACQUIRE ANY SPECTRUM BROADCASTERS DON'T NEED FOR THEIR TELEVISION SIGNALS IN PARTICULAR POLICE AND FIRE DEPARTMENTS QUOTE DEFINITELY NEED IT DESPERATELY QUOTE SAYS JOHN LANE A WASHINGTON LAWYER REPRESENTING LOCAL GOVERNMENTS IN A FIGHT FOR ADDITIONAL SPECTRUM HE SAID PUBLIC SAFETY OFFICIALS COULD USE THE SPECTRUM FOR COMMUNICATIONS SERVICES THAT COULD MOVE FINGERPRINTS MUG SHOTS AND X. RAYS TO WORKERS IN THE FIELD TWO YEARS AGO THOSE GROUPS LOST OUT WHEN THE FEDERAL COMMUNICATIONS COMMISSION DECIDED TO AWARD ADDITIONAL CHUNKS OF SPECTRUM TO BROADCASTERS SO THAT THEY COULD MAKE THE TRANSITION TO DIGITAL HIGH DEFINITION TELEVISION BROADCASTING BUT H. D. T. V. IS FACING INCREASING SKEPTICISM WITHIN THE INDUSTRY ESPECIALLY BECAUSE OF UNCERTAINTY OVER HOW T. V. STATIONS WOULD PAY FOR THE HUGE COSTS WHILE BROADCASTERS INSIST THEY AREN'T GIVING UP ON H. D. T. V. THEY'RE INCREASINGLY PRESSING FOR THE RIGHT TO MIX OTHER SERVICES ON EITHER THEIR EXISTING CHANNELS OR THEIR NEW DIGITAL CHANNELS IN TESTIMONY PREPARED FOR A HOUSE TELECOMMUNICATIONS SUBCOMMITTEE TODAY THE NATIONAL ASSOCIATION OF BROADCASTERS SAYS TELEVISION STATIONS COULD SEND DATA TO PAGERS FACSIMILE MACHINES OR LAPTOP COMPUTERS OR COULD PROVIDE DETAILED INFORMATION ABOUT A CAR'S PRICE OR DEALERS ALONG WITH A CAR COMMERCIAL BUT THE TRADE GROUP SAYS IT NEEDS A NEW REGULATORY FRAMEWORK THE BROADCASTERS ARE SEEKING CONGRESSIONAL HELP BECAUSE THE F. C. C. APPEARS UNLIKELY TO ALLOW BROADCASTERS SUCH FLEXIBILITY ESPECIALLY ON THE NEW H. D. T. V. CHANNEL WHAT WE DON'T WANT TO HAPPEN IS ANY STEP THAT WOULD PROLONG THE INTRODUCTION OF H. D. T. V. SAID THOMAS STANLEY THE F. C. C.'S CHIEF ENGINEER BROADCASTERS HAVE BEEN LOBBYING MEMBERS OF CONGRESS TO AMEND A HOUSE BILL THAT WOULD ALLOW CABLE AND TELEPHONE COMPANIES TO COMPETE MORE EASILY REPRESENTATIVES OF THE BROADCASTERS ASSOCIATION MET SEVERAL WEEKS AGO WITH THE STAFF OF THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE WHICH IS CONSIDERING THE BILL SPONSORED BY SUBCOMMITTEE CHAIRMAN EDWARD MARKEY D. MASSACHUSETTS PRESTON PADDEN EXECUTIVE VICE PRESIDENT OF NEWS CORPORATION'S FOX BROADCASTING COMPANY SAID HE GOT A FAVORABLE RECEPTION YESTERDAY FROM THE STAFF OF REPRESENTATIVE JACK FIELDS R. TEXAS A CO SPONSOR OF THE HOUSE BILL FOX IS SEEKING THE RIGHT TO PROVIDE SEVERAL NEW CHANNELS ALONG WITH H. D. T. V. ON ITS NEW SPECTRUM MR. FIELDS'S STAFF COULDN'T BE REACHED FOR COMMENT EVEN IF THE BROADCASTERS DO WIN SUPPORT IN CONGRESS THEY STILL FACE OBSTACLES ANDREW SCHWARTZMAN EXECUTIVE DIRECTOR OF THE MEDIA ACCESS PROJECT WHICH OPPOSED THE GRANT OF SPECTRUM TO EXISTING BROADCASTERS SAID THE SUPREME COURT HAS GUARANTEED THE PUBLIC THE RIGHT TO COMPETE FOR SPECTRUM WHEN IT BECOMES AVAILABLE ALSO MR. SCHWARTZMAN SAID THAT IF T. V. STATIONS CRAM NEW CHANNELS INTO THEIR SIGNALS VIEWERS WILL ALMOST CERTAINLY NEED A SPECIAL SET TOP BOX TO DECODE THE SIGNALS YOU'RE LOOKING AT MAKING THE SERVICE UNAVAILABLE TO PEOPLE WHO DON'T SUBSCRIBE HE SAID SEPARATELY WITNESSES FROM CABLE AND TECHNOLOGY CONCERNS TOLD A HOUSE SUBCOMMITTEE THAT THE CONVERTER BOX WILL BE A MAIN LINK TO THE FUTURE INFORMATION SUPERHIGHWAY AND SHOULD BE REQUIRED TO HANDLE A LARGE VARIETY OF SOURCES THEY URGED MEMBERS OF THE HOUSE PANEL TO AVOID MANDATING SPECIFIC TECHNOLOGICAL STANDARDS AND TO PROHIBIT TELEPHONE CABLE SATELLITE OR BROADCAST COMPANIES FROM REQUIRING CONSUMERS TO BUY OR RENT SET TOP BOXES THAT CARRY ONLY INFORMATION FROM LIMITED SOURCES IT WILL BE LIKE DRIVING DOWN THE INFORMATION HIGHWAY WITH FIVE STEERING WHEELS AND NO MAP SAID ANDREW LIPPMAN ASSOCIATE DIRECTOR OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S MEDIA LAB AS ENVISIONED BY VICE PRESIDENT AL GORE AND OTHERS THE NATIONAL INFORMATION INFRASTRUCTURE WOULD BE A NETWORK OF NETWORKS INCLUDING TELEPHONE CABLE SATELLITE AND BROADCASTING AND OTHER WIRELESS LINKS AS PART OF THAT THE CONVERTER BOX BUSINESS COULD GO THE WAY OF THE TELEPHONE INDUSTRY SINCE AMERICAN TELEPHONE AND TELEGRAPH COMPANY LOST ITS BATTLE TO PLUG ONLY EQUIPMENT MADE BY ITS WESTERN ELECTRIC UNIT INTO THE BELL SYSTEM NETWORK THE CHOICE OF TELEPHONE EQUIPMENT HAS MUSHROOMED AND PRICES HAVE PLUNGED THE CLINTON ADMINISTRATION SAID CHINA'S HUMAN RIGHTS RECORD LAST YEAR QUOTE FELL FAR SHORT OF INTERNATIONAL NORMS QUOTE RAISING THE PROSPECT THAT BEIJING COULD LOSE ITS FAVORABLE TRADE STATUS WITH THE U. S. IN THE ANNUAL HUMAN RIGHTS REPORT TO CONGRESS THE ADMINISTRATION SAID IT WAS IMPOSSIBLE TO DOCUMENT HOW MANY POLITICAL PRISONERS WERE BEING DETAINED BY BEIJING BUT ESTIMATED IT COULD BE IN THE THOUSANDS IT ALSO FOUND THAT PHYSICAL ABUSE INCLUDING TORTURE BY POLICE AND PRISON OFFICIALS PERSISTED AND CONCLUDED THAT OVERALL POLITICAL AND CIVIL RIGHTS REMAINED SEVERELY RESTRICTED THE REPORT ALSO CRITICIZED THE HUMAN RIGHTS RECORDS OF SEVERAL U. S. ALLIES INCLUDING EGYPT ISRAEL SAUDI ARABIA AND TURKEY AS WELL AS THE SOUTHERN NEIGHBOR OF THE U. S. MEXICO OLD COLD WAR ENEMIES INCLUDING MANY STATES OF THE FORMER SOVIET UNION ALSO WERE CRITICIZED FOR HUMAN RIGHTS ABUSES AS WAS VIETNAM BUT THE CHAPTER ON CHINA LOOMED LARGE BECAUSE OF THE POSSIBLE TRADE CONSEQUENCES TIMOTHY WIRTH THE STATE DEPARTMENT'S COUNSELOR SAID THAT LIMITED PROGRESS WAS MADE IN CHINA OVER THE PAST YEAR BUT HE SAID THAT MUCH MORE SIGNIFICANT PROGRESS IS GOING TO BE NECESSARY BEFORE PRESIDENT CLINTON WOULD BE ABLE TO RENEW CHINA'S MOST FAVORED NATION TRADING STATUS IN JUNE LAST YEAR MR. CLINTON RENEWED THE TRADE STATUS BUT TOLD BEIJING THAT IT MUST MAKE OVERALL SIGNIFICANT PROGRESS IN HUMAN RIGHTS IN ORDER TO KEEP THE DESIGNATION WHICH GIVES CHINA THE SAME TARIFF TREATMENT AS MOST OTHER U. S. TRADING PARTNERS CHINA'S BAD MARKS IN THE HUMAN RIGHTS REPORT HAD BEEN EXPECTED BUT THE ANNUAL REPORT'S PUBLICATION YESTERDAY PUTS BEIJING AND WASHINGTON ON WHAT COULD BE A COLLISION COURSE MR. CLINTON WHO CRITICIZED FORMER PRESIDENT BUSH AS BEING SOFT ON BEIJING IS INSISTING THAT CHINA IMPROVE ITS HUMAN RIGHTS BEHAVIOR BUT DOESN'T WANT TO PENALIZE U. S. BUSINESS BY CUTTING OFF TRADE WITH THE WORLD'S FASTEST GROWING ECONOMY OVERALL JOHN SHATTUCK THE STATE DEPARTMENT'S ASSISTANT SECRETARY FOR HUMAN RIGHTS SAID THAT WITH THE END OF THE IDEOLOGICAL STRUGGLE OF THE COLD WAR MANY HUMAN RIGHTS ABUSES NOW STEM FROM ETHNIC RACIAL AND RELIGIOUS CONFLICTS IN PLACES SUCH AS BOSNIA ANGOLA AND PARTS OF THE FORMER SOVIET UNION AT THE SAME TIME HE SAID DRAMATIC FIRST STEPS TOWARD RECONCILIATION IN SUCH PLACES AS THE MIDDLE EAST CAMBODIA SOUTH AFRICA AND EL SALVADOR HAVE TENDED TO REDUCE HUMAN RIGHTS ABUSES THE REPORT SAID THAT QUOTE RUSSIA CONTINUED ITS PROGRESS ON HUMAN RIGHTS QUOTE LAST YEAR BUT ADDED THAT MOSCOW'S RECORD STILL WAS QUOTE UNEVEN AND SOME SERIOUS PROBLEMS REMAIN QUOTE THE REPORT CITED SUCH PROBLEMS AS THE EXPULSION OF PEOPLE FROM CENTRAL ASIA AND THE CAUCASUS REGION OF THE FORMER SOVIET UNION WHICH OCCURRED WHEN PRESIDENT BORIS YELTSIN DECLARED A STATE OF EMERGENCY IN THE CAPITAL IN OCTOBER THE REPORT SAID THAT VIETNAM CONTINUED TO LIMIT SEVERELY BASIC POLITICAL AND CIVIL FREEDOMS BUT THAT HANOI LAST YEAR EASED RESTRICTIONS ON TRAVEL AND THAT ITS CITIZENS' CONTACTS WITH FOREIGNERS IS MORE WIDELY ACCEPTED PRESIDENT CLINTON IS EXPECTED TO DECIDE SOON WHETHER TO LIFT THE TWO DECADE OLD U. S. TRADE EMBARGO OF VIETNAM HOWEVER HUMAN RIGHTS WON'T BE A MAJOR CONSIDERATION IN THAT DECISION RATHER MR. CLINTON MUST DECIDE WHETHER VIETNAM IS COOPERATING SUFFICIENTLY WITH EFFORTS TO RESOLVE CASES OF UNACCOUNTED FOR U. S. SOLDIERS FROM THE VIETNAM WAR IN THE ISRAELI OCCUPIED WEST BANK AND GAZA STRIP THE REPORT SAID THERE ARE CREDIBLE REPORTS THAT AMID THE SURGE IN VIOLENCE FOLLOWING THE ISRAELI PALESTINIAN PEACE ACCORD SIGNED LAST SEPTEMBER ISRAELI SOLDIERS MISTREATED PALESTINIAN PRISONERS THE REPORT SAID THIS MISTREATMENT INCLUDED TORTURE ADMINISTRATIVE DETENTION AND DESTRUCTION OF HOUSES OF SUSPECTED TERRORISTS THE REPORT ALSO SAID THAT IN MEXICO DESPITE EFFORTS BY THE GOVERNMENT THE SECURITY FORCES IN PARTICULAR THE POLICE CONTINUED TO COMMIT SERIOUS HUMAN RIGHTS VIOLATIONS IN NINETEEN NINETY THREE THE REPORT ALSO NOTED THE RECENT ARMED UPRISING IN THE MEXICAN STATE OF CHIAPAS STATING THAT INDIGENOUS GROUPS THERE REMAIN LARGELY OUTSIDE THE COUNTRY'S POLITICAL AND ECONOMIC MAINSTREAM BUT THE REPORT DIDN'T INCLUDE MUCH DETAIL ON THE UPRISING WHICH OCCURRED IN JANUARY AND WILL BE PART OF NEXT YEAR'S REPORT PROFIT TAKERS SPURRED ON BY HIGHER INTEREST RATES JUMPED IN TO REVERSE FOUR STRAIGHT SESSIONS OF SMALL COMPANY STOCK GAINS QUOTE THIS WAS JUST A LITTLE SELL OFF IN WHAT'S BEEN A VERY POWERFUL MARKET QUOTE SAID RICHARD HOLDEN MANAGER OF NASDAQ TRADING AT ALEXANDER BROWN AND SONS INCORPORATED PRETTY MUCH EVERYTHING WAS FOR SALE TODAY BUT THERE HASN'T BEEN ANY KIND OF PANIC SELLING THE RUSSELL TWO THOUSAND INDEX WHICH TRACKS THE PERFORMANCE OF SMALL CAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES DIDN'T FARE TOO BADLY AND MANAGED TO RECOUP SOME OF ITS EARLIER LOSSES THE BAROMETER FINISHED DOWN JUST ZERO POINT ZERO TWO OR ZERO POINT ZERO ONE PERCENT AT TWO HUNDRED SIXTY SIX POINT FIVE OH AFTER BEING DOWN NEARLY A POINT DURING THE SESSION THE RUSSELL HAD SET CLOSING HIGHS IN THE PREVIOUS TWO SESSIONS THE NASDAQ COMPOSITE INDEX DROPPED THREE POINT TWO THREE OR ZERO POINT FOUR ZERO PERCENT TO SEVEN HUNDRED NINETY SEVEN POINT TWO FOUR WELL ABOVE ITS LOW FOR THE DAY WHEN IT HAD SLUMPED ABOUT FIVE AND ONE HALF POINTS WEAK TECHNOLOGY AND HEALTH CARE ISSUES CAUSED MOST OF THE DAMAGE NASDAQ DECLINERS LED ADVANCERS ONE THOUSAND SIX HUNDRED SIXTY SIX TO ONE THOUSAND FOUR HUNDRED FIFTY NINE ON NASDAQ NATIONAL MARKET VOLUME OF TWO HUNDRED EIGHTY FIVE MILLION SIX HUNDRED TWENTY FOUR THOUSAND TWO HUNDRED FIFTY SHARES AND TOTAL VOLUME OF THREE HUNDRED THIRTY NINE MILLION SEVEN HUNDRED FIFTY FOUR THOUSAND SHARES MONDAY NATIONAL MARKET VOLUME WAS TWO HUNDRED SEVENTY EIGHT MILLION FIVE HUNDRED TWO THOUSAND FIVE HUNDRED SHARES AND TOTAL TURNOVER HIT THREE HUNDRED TWENTY NINE MILLION NINE HUNDRED TWENTY ONE THOUSAND EIGHT HUNDRED SOME TECHNOLOGY STOCKS WEAKENED JETFORM A CANADIAN SOFTWARE FIRM LOST ONE TO TEN AND ONE QUARTER CHIPS AND TECHNOLOGIES A SAN JOSE CALIFORNIA INTEGRATED CIRCUIT DESIGNER GAVE UP ONE HALF TO FIVE AND ONE QUARTER AND TRINZIC A PALO ALTO CALIFORNIA SOFTWARE COMPANY WAS OFF ONE HALF AT FIVE AND THREE EIGHTHS BUT ALDUS SEATTLE WAS THE SECTOR'S BIG DECLINER TUMBLING FOUR TO TWENTY TWO AND ONE QUARTER ON DISAPPOINTING FOURTH QUARTER EARNINGS OLICOM A SLASH S. DROPPED ONE AND FIVE EIGHTHS TO NINE AND THREE EIGHTHS THE DANISH SOFTWARE AND HARDWARE PRODUCTS CONCERN SAID FOURTH QUARTER EARNINGS FELL TO SEVENTEEN CENTS A SHARE FROM TWENTY THREE CENTS IN THE YEAR EARLIER PERIOD IN THE HEALTH CARE GROUP IMAGEAMERICA A BRENTWOOD TENNESSEE MEDICAL DIAGNOSTIC IMAGING SERVICES COMPANY GAVE UP ONE HALF TO THREE AND ONE QUARTER ENZO BIOCHEM A FARMINGDALE N. Y. HEALTH CARE PRODUCTS FIRM DIPPED THREE QUARTERS TO EIGHTEEN AND THREE EIGHTHS ON THE AMERICAN STOCK EXCHANGE AND MEDCO RESEARCH A LOS ANGELES CARDIOVASCULAR DRUG COMPANY LOST ONE HALF TO FOURTEEN AND ONE HALF ALSO ON THE AMEX INTEREST RATE SENSITIVE STOCKS WHICH HAD HELD UP WELL IN RECENT SESSIONS SLIPPED AS BONDS FELL U. S. FACILITIES A COSTA MESA CALIFORNIA INSURANCE COMPANY RETREATED ONE TO TEN AND ONE HALF VICTORIA FINANCIAL CLEVELAND DECLINED THREE QUARTERS TO EIGHT AND ONE HALF AND SILICON VALLEY BANCSHARES SAN JOSE CALIFORNIA SLIPPED THREE QUARTERS TO NINE AND ONE QUARTER THREE NEW ISSUES WERE IN THE SPOTLIGHT MAPINFO TROY N. Y. JUMPED TO TWENTY FOUR AND ONE QUARTER FROM ITS OFFERING PRICE OF NINETEEN THE COMPANY DEVELOPS DESKTOP MAPPING SOFTWARE MAPPING APPLICATION TOOLS AND GEOGRAPHIC AND DEMOGRAPHIC INFORMATION PRODUCTS DIGITAL LINK CLIMBED TO SEVENTEEN AND SEVEN EIGHTHS FROM ITS OFFERING PRICE OF FOURTEEN THE SUNNYVALE CALIFORNIA CONCERN MAKES HIGH SPEED DIGITAL TELECOMMUNICATIONS PRODUCTS ALSO PARCPLACE SYSTEMS SURGED TO TWENTY ONE AND ONE HALF FROM ITS INITIAL PRICE OF FIFTEEN AND ONE HALF THE SUNNYVALE CALIFORNIA COMPANY DEVELOPS TOOLS FOR COMPUTER SOFTWARE DESIGN APPLICATIONS KATHY SMITH AN ANALYST AT RENAISSANCE CAPITAL GREENWICH CONNECTICUT SAID MAPINFO DIGITAL LINK AND PARCPLACE WERE THREE OF THE QUALITY DEALS ON THE CALENDAR SHE ADDED THAT BECAUSE THEY'RE NOT ENORMOUS IN SIZE THEIR PRICES GOT PUSHED UP A LOT BY ALL THE INVESTORS WHO WANTED TO GET IN ON THE DEALS ELSEWHERE HEARTLAND EXPRESS CORALVILLE IOWA ADDED ONE AND ONE HALF TO THIRTY TWO AND ONE QUARTER THE TRANSPORT COMPANY AND MUNSON TRANSPORTATION INCORPORATED AGREED TO MERGE MUNSON WILL BECOME A WHOLLY OWNED HEARTLAND SUBSIDIARY RIGHT MANAGEMENT CONSULTANTS ROSE TWO AND ONE HALF POINTS TO TWENTY THE PHILADELPHIA PROVIDER OF CAREER MANAGEMENT AND HUMAN RESOURCE CONSULTING SERVICES SAID FOURTH QUARTER NET INCOME WAS FORTY FIVE CENTS A SHARE COMPARED WITH OPERATING EARNINGS OF TWENTY TWO CENTS A YEAR EARLIER CATHERINES STORES MEMPHIS TENNESSEE SAGGED ONE AND ONE QUARTER TO FOURTEEN AND ONE QUARTER THE RETAIL STORE OPERATOR SAID FOURTH QUARTER EARNINGS ARE EXPECTED TO FALL BELOW THE EIGHT CENTS A SHARE POSTED A YEAR EARLIER IT CITED JANUARY STORE SALES THAT WILL BE LESS THAN LAST YEAR AND SIGNIFICANTLY BELOW PLAN EASTERN COMPANY GAINED ONE AND THREE QUARTERS TO FOURTEEN AND ONE QUARTER ON THE AMEX THE NAUGATUCK CONNECTICUT SECURITY PRODUCTS FIRM SAID FOURTH QUARTER EARNINGS ROSE TO FORTY EIGHT CENTS A SHARE FROM TWENTY EIGHT CENTS A YEAR EARLIER AMERICA ONLINE SKIDDED ONE AND THREE QUARTERS TO SIXTY TWO FLOODED WITH NEW SUBSCRIBERS THE VIENNA VIRGINIA COMPANY HAS BEEN FORCED TO RESTRICT ACCESS TO ITS COMPUTER BASED INFORMATION SERVICES NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED ONE HUNDRED TWENTY SIX WHILE TWENTY TWO HIT NEW LOWS THERE'S A NEW QUIET FORM OF COMPUTER AIDED TRADING FOR CUSTOMERS GOING ON INSIDE ONCE SWASHBUCKLING SALOMON INCORPORATED AND SOME ANALYSTS THINK THE FIRM'S STOCK WILL GET A BOOST FROM IT IN THE PAST INVESTORS GREW SEASICK AS THE SHARES SOARED AND PLUNGED ALONG WITH THE VARIOUS HIGH RISK BETS IN STOCK AND BOND MARKETS TAKEN BY THE COMPANY'S SALOMON BROTHERS SECURITIES BUSINESS BUT WHAT'S ENCOURAGING THE BULLS TODAY IS A NEW AND MORE CIRCUMSPECT MOOD WITHIN SALOMON WHICH SOME THINK MAKES THE STOCK UNDULY CHEAP AT ITS CURRENT MULTIPLE OF ABOUT SEVEN AND ONE HALF TIMES TRAILING EARNINGS WANTON RISK IS OUT SALOMON SAYS STABILITY IS IN FOR EVIDENCE TAKE A LOOK AT SALOMON'S HIGH TECH TRADING ARM KNOWN AS THE QUANTITATIVE TRADING GROUP IT EXECUTES OFF EXCHANGE COMPUTER ASSISTED PROGRAM TRADES FOR BIG CUSTOMERS SUCH AS MUTUAL FUND PORTFOLIO MANAGERS AT LOWER THAN USUAL COMMISSION RATES A VISIT TO THE FORTIETH FLOOR OPERATION CONFIRMS IT'S A FAR CRY FROM BRASH IN HOUSE TRADING REALM FOR WHICH SALOMON WAS KNOWN IN THE NINETEEN EIGHTIES IN A CORNER MILLIONS OF DOLLARS IN STOCKS ARE TRADED WITH A TOUCH OF A BUTTON BUT NOT BECAUSE SOME TRADER IS GAMBLING ON THE STOCKS' PROSPECTS THE QUANTITATIVE TRADING UNIT IS QUOTE EXCHANGING QUOTE LONG LISTS OF STOCKS FROM SALOMON'S INVENTORY DIRECTLY WITH CUSTOMERS AT PREVIOUSLY AGREED UPON PRICES THE BENEFIT FOR CUSTOMERS LOWER COMMISSION RATES THAN CONVENTIONAL TRADING AND NO FUSS SINCE THE TRADES DON'T SHOW UP IN THE PUBLIC MARKETS WE WOULD LIKE TO DRIVE THE COST OF TRADING DOWN AS MUCH AS POSSIBLE SAYS NEIL YELSEY A THIRTY FIVE YEAR OLD FORMER STOCK ANALYST WITH AN ENGINEERING DEGREE WHO HEADS THE TRADING OPERATION HIS BOSS JONATHAN SANDELMAN SAYS THE UNIT'S IMPROVED ANALYTICS HOLD DOWN BOTH SALOMON'S RISKS AND CUSTOMERS' COSTS SALOMON IS ALSO ACTIVE IN CONVENTIONAL PROGRAM TRADING ON THE NEW YORK STOCK EXCHANGE OF COURSE THIS ISN'T A TRENDY TIME TO BE POSITIVE ON SALOMON OR ANY OTHER BROKERAGE INDUSTRY STOCK THOUGH BROKERAGE STOCKS JUMPED TWENTY SEVEN PERCENT IN NINETEEN NINETY THREE MANY INVESTORS ARE FLEEING THE SECTOR FEARING THE END IS NIGH FOR THE BULL MARKET THIS WEEK OPPENHEIMER AND COMPANY ISSUED A BUY RATING ON SALOMON CITING THE PROSPECT FOR MORE STABLE EARNINGS AS ITS BUSINESS MIX CHANGES THEY'RE DEFINITELY BUILDING UP THE CUSTOMER DRIVEN STUFF OPPENHEIMER ANALYST STEVEN EISMAN SAID YESTERDAY HE SET A PRICE TARGET OF SIXTY TO SIXTY FIVE FOR THE STOCK OVER THE NEXT TWELVE TO EIGHTEEN MONTHS HE CALLED SALOMON'S CURRENT VALUATION INCLUDING A PRICE ONLY ONE POINT THREE TIMES BOOK VALUE EXTREMELY COMPELLING MR. EISMAN ALSO ISSUED BUYS ON MERRILL LYNCH NOW AT FORTY THREE AND SEVEN EIGHTHS AND MORGAN STANLEY NOW AT SEVENTY NINE AND ONE HALF HE CITED THOSE FIRMS' INROADS IN EUROPE AND EMERGING MARKETS PLUS BEEFED UP QUOTE MANAGEMENT CONTROLS QUOTE SALOMON FOR ITS PART IS ALSO MOVING TO BUILD UP ITS MANAGEMENT AND RISK SYSTEMS WITHIN MR. YELSEY'S UNIT SALOMON TRIES TO KEEP SUCH AN ACCURATE TRACK OF ITS STOCK INVENTORY THAT IT CAN COMPLETE MULTISTOCK PROGRAM TRADES DIRECTLY WITH CUSTOMERS AT LOW COST TO BOTH SIDES CUSTOMERS USE SALOMON PROVIDED SOFTWARE TO SEE THE PRECISE COMMISSION RATES THEY WILL PAY TO TRADE ANY OF THE FOUR HUNDRED OR MORE STOCKS IN THE QUANTITATIVE GROUP'S INVENTORY A CUSTOMER MIGHT SCAN THE COMMISSION CHARGES FOR EACH OF SAY ONE HUNDRED STOCKS IN A PROGRAM PACKAGE AND CHOOSE TO ELIMINATE A FEW WITH HIGH COMMISSIONS FOR SALOMON IT IS ALL A MORE STABLE GAME THAN GAMBLING ON INTEREST RATES THIS IS A BUSINESS SAYS A SALOMON SPOKESMAN WHERE OUR BALANCE SHEET IS USED FOR THE CUSTOMER YEAR ENDED DECEMBER THIRTY FIRST NINETEEN NINETY THREE FOURTH QUARTER DECEMBER THIRTY FIRST NINETEEN NINETY THREE DENNIS M. CHORBA FIFTY THREE YEARS OLD VICE PRESIDENT OF ADMINISTRATION WAS ELECTED A DIRECTOR OF THIS CHEMICAL COMPANY EXPANDING THE BOARD TO EIGHT MEMBERS YOUR DECEMBER FOURTEENTH LABOR LETTER ABOUT OFFICE BUILDING JANITORS IN WASHINGTON STATES THAT QUOTE THE SERVICE EMPLOYEES UNION SAYS THE NATION'S CAPITAL IS THE FIRST MAJOR CITY TO GO UNION FOR JANITORS SINCE BEFORE WORLD WAR TWO QUOTE WASHINGTON D. C. IS NOT A UNION CITY AND NEVER WILL BE FOR JANITORS AS ONE OF THE LARGEST JANITORIAL COMPANIES IN WASHINGTON WE CAN FIRMLY STATE THAT THE FREE ENTERPRISE SYSTEM IS ALIVE AND WELL IN FACT MORE THAN EIGHTY PERCENT OF THE NONGOVERNMENT BUILDINGS DO NOT HAVE ANY UNION CONTRACTS A FIGURE UNCHANGED IN THE PAST TEN YEARS THE TREASURY PLANS TO PAY DOWN ONE POINT OH EIGHT BILLION DOLLARS ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT TWENTY FIVE POINT TWO BILLION DOLLARS IN SHORT TERM BILLS MATURING BILLS OUTSTANDING TOTAL TWENTY SIX POINT TWO SEVEN BILLION DOLLARS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN THIRTEEN WEEK BILLS CUSIP NINE ONE TWO SEVEN NINE FOUR K. FIFTY TWO MATURING MAY TWELFTH NINETEEN NINETY FOUR AND TWENTY SIX WEEK BILLS CUSIP NINE ONE TWO SEVEN NINE FOUR M. SEVENTY SIX MATURING AUGUST ELEVENTH NINETEEN NINETY FOUR NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON E. S. T. MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY ONE P. M. E. S. T. THE BILLS ARE AVAILABLE IN MINIMUM DENOMINATIONS OF TEN THOUSAND DOLLARS THE U. S. WAS FORCED BY ITS MAJOR TRADING PARTNERS TO SCALE BACK A PLAN TO LIBERALIZE EXPORT CONTROLS ON COMPUTERS CLINTON ADMINISTRATION OFFICIALS SAID MEMBERS OF THE COORDINATING COMMITTEE ON MULTILATERAL EXPORT CONTROLS REJECTED A U. S. PROPOSAL THAT WOULD HAVE EASED EXPORT RESTRICTIONS ON COMPUTERS OPERATING UP TO FIVE HUNDRED MTOPS OR MILLION THEORETICAL OPERATIONS PER SECOND AN INDICATOR THAT MEASURES THE SPEED OF A COMPUTER THE CONTROLS WHICH REQUIRE GOVERNMENT APPROVAL OF CERTAIN EXPORTS APPLY TO COMPUTER SALES TO COCOM PROSCRIBED COUNTRIES INCLUDING THE FORMER SOVIET UNION OTHER FORMER COMMUNIST COUNTRIES AND CHINA THE OFFICIALS SAID COCOM COUNTRIES WHICH INCLUDE JAPAN AUSTRALIA AND ALL MEMBERS OF THE NORTH ATLANTIC TREATY ORGANIZATION EXCEPT ICELAND HAVE ACCEPTED EASING RESTRICTIONS ON COMPUTERS ONLY UP TO TWO HUNDRED SIXTY MTOPS LATE LAST YEAR COCOM MEMBERS AGREED TO RAISE THE LIMIT TO SIXTY SEVEN MTOPS FROM TWELVE POINT FIVE THE TWO HUNDRED SIXTY MTOP LEVEL SHOULD INCLUDE MOST WORKSTATIONS ON THE MARKET TODAY BUT U. S. COMPUTER MAKERS HAVE EXPRESSED CONCERN THAT IT WOULDN'T COVER PRODUCTS THAT WILL BE MANUFACTURED OVER THE NEXT COUPLE OF YEARS QUOTE WE SETTLED ON THAT BECAUSE THAT IS AS HIGH AS WE COULD GET AS A CONSENSUS QUOTE A U. S. OFFICIAL SAID BUT WE HAVEN'T GIVEN UP ON FIVE HUNDRED IT WAS VIEWED BY US AS AN INTERIM MEASURE ANOTHER U. S. OFFICIAL SAID THE ADMINISTRATION IS PLANNING TO ISSUE DETAILS OF THE NEW ARRANGEMENT SOON PROBABLY IN THE COMING DAYS THE U. S. OFFICIALS ALSO SAID JAPAN HAS REFUSED TO ACCEPT A U. S. PROPOSAL DEFINING SUPERCOMPUTERS AS PRODUCTS OPERATING AT MORE THAN TWO THOUSAND MTOPS IN RECENT NEGOTIATIONS THE JAPANESE DREW THE LINE AT COMPUTERS OPERATING AT MORE THAN ONE THOUSAND FIVE HUNDRED MTOPS THAT WOULD REPRESENT A HUGE BOOST FROM THE CURRENT DEFINITION OF ANY COMPUTER OPERATING OVER ONE HUNDRED NINETY FOUR MTOPS BUT IT TOO FALLS SHORT OF U. S. CORPORATE DEMANDS PRODUCTS DEFINED AS SUPERCOMPUTERS ARE SUBJECT TO TOUGHER EXPORT CONTROLS THE CLINTON ADMINISTRATION LAID OUT THE FIVE HUNDRED MTOP LEVEL AS ONE OF ITS GOALS LAST OCTOBER IN A MUCH BALLYHOOED REPORT OF ITS INTER AGENCY TRADE PROMOTION COORDINATION COMMITTEE HEADED BY COMMERCE SECRETARY RON BROWN PAUL FREEDENBERG A LAWYER FOR THE COMPUTER AND BUSINESS EQUIPMENT MANUFACTURERS ASSOCIATION AND A COMMERCE UNDERSECRETARY IN THE REAGAN ADMINISTRATION SAID HE UNDERSTANDS JAPAN REPRESENTED THE MAIN OBSTACLE TO RAISING THE LIMIT TO FIVE HUNDRED MTOPS THEY ARE ESSENTIALLY BEHIND US IN TECHNOLOGY AND THEY ARE SUSPICIOUS THE U. S. IS TRYING TO GET A COMPETITIVE ADVANTAGE BY EASING EXPORT RESTRICTIONS HE SAID RICHARD BARTH ASSISTANT DIRECTOR OF INTERNATIONAL TRADE RELATIONS AND GOVERNMENT RELATIONS AT MOTOROLA INCORPORATED A SCHAUMBURG ILLINOIS BASED ELECTRONICS COMPANY SAID THE COMPUTER INDUSTRY IS LIKELY TO BE DISAPPOINTED THAT THE ADMINISTRATION COULDN'T DELIVER ON ITS PROPOSAL TO DECONTROL TO FIVE HUNDRED MR. BARTH HEADED A PROJECT BY THE COUNCIL ON COMPETITIVENESS A WASHINGTON BUSINESS BACKED GROUP THAT LAYS OUT THE COST OF UNILATERAL EXPORT RESTRICTIONS THE REPORT IS EXPECTED TO BE RELEASED TOMORROW ALTHOUGH COCOM IS TO BE DISBANDED NEXT MONTH THE LIMITS AGREED UPON NOW ARE CONSIDERED IMPORTANT BECAUSE THEY WILL BASICALLY DEFINE COMPUTER EXPORT CONTROLS UNTIL A NEW SYSTEM IS CREATED TO SET RESTRICTIONS U. S. NEGOTIATORS ARE STILL DISCUSSING VARIOUS PROPOSALS WITH OTHER COCOM MEMBERS THE U. S. OFFICIALS SAID THEY ARE HOPEFUL THEY CAN REACH THE FIVE HUNDRED MTOP LEVEL EVEN IN A POST COCOM SYSTEM WHICH IS EXPECTED TO SHIFT ITS FOCUS TO RESTRICT EXPORTS TO NATIONS SUCH AS IRAQ IRAN LIBYA AND NORTH KOREA RATHER THAN THE FORMER SOVIET AND COMMUNIST COUNTRIES THE ADMINISTRATION WAS SUPPOSED TO PRESENT PROPOSED LEGISLATION COVERING EXPORT CONTROL REFORM TODAY AT A CAPITOL HILL HEARING BUT THAT HEARING WAS POSTPONED UNTIL NEXT WEEK AS THE ADMINISTRATION STILL TRIES TO SETTLE ON ITS PLAN THE ADMINISTRATION IS UNDER PRESSURE TO LIBERALIZE EXPORT CONTROLS BY CORPORATE INTERESTS WHICH ARGUE THE RESTRICTIONS ARE COSTLY TO THE U. S. ECONOMY WHAT'S LOVE GOT TO DO WITH IT ANYWAY FOR LAWYERS IN DALLAS YOU MIGHT HAVE TO WONDER LAST WEEK THE DALLAS BAR ASSOCIATION ISSUED A NEWS RELEASE PROMOTING ITS LEGALLINE SERVICE WHICH ALLOWS CALLERS TO TALK FREE OF CHARGE TO LAWYERS FOR GENERIC LEGAL ASSISTANCE THE FEBRUARY LEGALLINE SPECIAL ACCORDING TO THE BAR ASSOCIATION WILL BE DIVORCE CUSTODY AND FAMILY LAW TOPICS IN CELEBRATION OF VALENTINE'S DAY THIS IS NO QUOTE LAWYER JOKE QUOTE THE BAR ASSOCIATION SAYS BROKEN HEARTS ARE NO LAUGHING MATTER FAMILY LAW IS THE NUMBER ONE AREA OF THE LAW FOR QUESTIONS AND THIS WAS A WAY TO HIGHLIGHT FAMILY LAW SAYS DAWN CARBONE SPOKESWOMAN FOR ALL THE ROMANTICS AT THE BAR ASSOCIATION TRUTHFULLY WE'RE JUST TRYING TO MAKE IT MORE VISIBLE THE GROUP STARTED ITS LEGALLINE LAST JUNE AND RECEIVES ABOUT ONE HUNDRED CALLS A MONTH IT HAS OFFERED HELP WITH LABOR LAW FOR LABOR DAY AND CONSUMER LAW FOR CHRISTMAS WE'RE JUST TRYING TO COME UP WITH NEW WAYS TO KEEP IT BEFORE THE PUBLIC MS. CARBONE SAYS FIVE MINUTES BEFORE ITS EXPIRATION NEW YORK'S BANKING DEREGULATION LAW WHICH AMONG OTHER THINGS KEPT CAPS OFF MOST LOAN AND CREDIT CARD RATES WAS EXTENDED PERMANENTLY THE STATE'S THIRTEEN YEAR OLD LAW ALLOWING BANKS TO SET RATES WAS SCHEDULED TO EXPIRE AT TWELVE OH ONE A. M. E. S. T. YESTERDAY LAWMAKERS WORKED INTO THE NIGHT TO RESOLVE SEVERAL STICKING POINTS IN THE NEW WIDE RANGING BANKING BILL INCLUDING HOW TO ALLOCATE MONEY FOR SMALL BUSINESS DEVELOPMENT ONCE PASSED GOVERNOR MARIO CUOMO SIGNED THE BILL ON THE ASSEMBLY FLOOR TO MAKE SURE THE LAW DIDN'T LAPSE IN ADDITION TO ALLOWING BANKS TO SET LOANS RATES AND CREATING NEW SMALL BUSINESS INVESTMENT PROGRAMS THE LAW PROVIDES FOR NEW AUTO LEASE TERM DISCLOSURE REQUIREMENTS A CONSUMER AUTO LEASING GRIEVANCE PROCEDURE THE CREATION OF A CONSUMER EIGHT HUNDRED NUMBER FOR INFORMATION ON CREDIT CARD RATES AND TERMS AND A REQUIREMENT THAT BANKS SET UP LOW COST CHECKING ACCOUNTS FOR POOR PEOPLE EASTMAN KODAK COMPANY'S NET INCOME DROPPED THIRTY THREE PERCENT IN THE FOURTH QUARTER BUT OPERATING PROFIT ROSE BECAUSE OF COST CUTTING AND STRENGTH IN ITS HEALTH AND INFORMATION SYSTEMS SEGMENTS THE PHOTOGRAPHY AND HEALTH CONCERN REPORTED NET INCOME OF TWO HUNDRED ONE MILLION DOLLARS OR SIXTY ONE CENTS A SHARE COMPARED WITH TWO HUNDRED NINETY NINE MILLION DOLLARS OR NINETY TWO CENTS A SHARE A YEAR EARLIER THE PRIOR PERIOD'S RESULTS INCLUDE GAINS OF TWENTY THREE CENTS A SHARE ON INVESTMENT SALES AND FIFTEEN CENTS A SHARE IN INCOME FROM DISCONTINUED OPERATIONS OF ITS CHEMICAL DIVISION SALES FROM CONTINUING OPERATIONS IN THE LATEST QUARTER WERE FLAT AT FOUR POINT FOUR EIGHT BILLION DOLLARS THE RESULTS EXCEEDED ANALYSTS' CONSENSUS ESTIMATE OF FIFTY SIX CENTS A SHARE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE KODAK ROSE TWELVE POINT FIVE CENTS TO CLOSE AT FORTY FOUR DOLLARS AND TWENTY FIVE CENTS BUT SOME ANALYSTS REMAINED CAUTIOUS QUOTE THE KEY ISSUE IS THAT COST SAVINGS WERE ACHIEVED IN NINETEEN NINETY THREE QUOTE SAYS JACK KELLY AN ANALYST WITH GOLDMAN SACHS AND COMPANY THE REAL QUESTION IS WHY AREN'T MORE OF THOSE COST SAVINGS FLOWING TO THE BOTTOM LINE HE POINTED OUT FOR EXAMPLE THAT OVERALL COSTS OF GOODS SOLD INCREASED SIX PERCENT KODAK BASED IN ROCHESTER N. Y. SAID OPERATING PROFIT FROM ITS IMAGING INFORMATION AND HEALTH SEGMENTS ROSE TWENTY PERCENT IN THE FOURTH QUARTER THE BOOST CAME PRIMARILY FROM A FIFTY SEVEN PERCENT EARNINGS INCREASE IN KODAK'S HEALTH DIVISION DRIVEN BY VOLUME INCREASES AND COST CONTROL SAID WILBUR J. PREZZANO HEALTH GROUP PRESIDENT DESPITE POSTING ITS LOWEST QUARTERLY EARNINGS OF THE YEAR KODAK'S BELEAGUERED INFORMATION SYSTEMS UNIT STILL EARNED TWENTY TWO MILLION DOLLARS IN THE FOURTH QUARTER AGAINST A LOSS OF TWELVE MILLION DOLLARS THE YEAR BEFORE THE UNIT BENEFITED FROM SUBSTANTIAL EARNINGS GAIN IN COPY PRODUCTS WHICH CHIEF EXECUTIVE OFFICER GEORGE FISHER SAID WAS NOT FOR SALE EARLIER THIS MONTH ENDING MORE THAN A YEAR OF SPECULATION SOME COSTS WERE ALSO LOWER MR. FISHER SAID WITH RESEARCH AND DEVELOPMENT EXPENSES DROPPING THIRTEEN PERCENT IN THE QUARTER AND SALES ADMINISTRATIVE AND OTHER RELATED EXPENSES DOWN TEN PERCENT MICHAEL ELLMANN AN ANALYST WITH WERTHEIM SCHRODER AND COMPANY SAID THAT KODAK HAS MADE SOME SIGNIFICANT PROGRESS IN COST REDUCTION BUT THAT IT HAD TO SURRENDER SOME OF THE BENEFITS TO THE MARKETPLACE FOR EXAMPLE MR. ELLMANN SAID THAT KODAK'S REVENUE FROM THIRTY FIVE M. M. COLOR NEGATIVE FILM SALES IN THE U. S. SLIPPED BETWEEN TWO PERCENT AND FOUR PERCENT DESPITE AN INCREASE OF TWO PERCENT TO THREE PERCENT IN THE VOLUME OF FILM SOLD HE PLACED SOME BLAME FOR THE REVENUE DROP ON THE COMPANY'S FOURTH QUARTER SEASONAL PACKAGING PROMOTIONS OF ITS GOLD FILM THE HOLIDAY DISCOUNT PACKAGE WAS SUPPOSED TO BE A TRIAL FOR KODAK'S NEW ECONOMY FUNTIME FILM ANNOUNCED LAST WEEK IT'S HARD TO FEEL ANY MORE COMFORTABLE WITH FUNTIME AFTER REVIEWING RESULTS OF THIS QUARTER MR. ELLMANN SAYS FOR THE YEAR KODAK REPORTED A LOSS OF ONE POINT FIVE TWO BILLION DOLLARS OR FOUR DOLLARS AND SIXTY TWO CENTS A SHARE INCLUDING A CHARGE OF TWO POINT ONE SEVEN BILLION DOLLARS OR SIX DOLLARS AND SIXTY CENTS A SHARE FROM ACCOUNTING CHANGES TAKEN PRIMARILY IN THE FIRST QUARTER AND A THREE HUNDRED EIGHTY SEVEN MILLION DOLLAR OR ONE DOLLAR AND EIGHTEEN CENTS A SHARE THIRD QUARTER RESTRUCTURING CHARGE RELATING TO KODAK'S PREVIOUSLY ANNOUNCED TEN THOUSAND LAYOFFS SALES FOR THE YEAR FELL SLIGHTLY TO ABOUT SIXTEEN POINT THREE SIX BILLION DOLLARS FROM SIXTEEN POINT FIVE FIVE BILLION DOLLARS LAST YEAR KODAK POSTED NET INCOME OF ONE POINT ONE FIVE BILLION DOLLARS OR THREE DOLLARS AND FIFTY THREE CENTS A SHARE INCLUDING A ONE HUNDRED FORTY ONE MILLION DOLLAR OR FORTY THREE CENT CHARGE AND A ONE HUNDRED FIFTY TWO MILLION DOLLAR OR FORTY SEVEN CENTS A SHARE BOOST FROM ACCOUNTING CHANGES NOT ONLY DOES THIS BLUE COLLAR CITY WELCOME PRISONS IN ITS BACK YARD IT WOULD PROBABLY PUT THEM ON THE FRONT PORCH AND IN THE PARLOR LOCAL LEADERS COULDN'T BE PROUDER OF THE BRAND NEW MAXIMUM SECURITY PRISON LOOMING IN A FORMER RICE FIELD JUST SOUTH OF HERE THANKS TO THEIR LOBBYING PLANNING ALREADY IS UNDER WAY FOR FOUR OTHER CORRECTIONS FACILITIES INCLUDING A GIANT FEDERAL COMPLEX BY NINETEEN NINETY SEVEN BEAUMONT WILL BE THE HOME AWAY FROM HOME FOR SOME NINE THOUSAND CONVICTED CRIMINALS ONE OF THE LARGEST SUCH CONCENTRATIONS IN THE STATE IF ANYONE HAS MISGIVINGS THEY AREN'T SPEAKING UP THAT'S BECAUSE IT'S STARTING TO LOOK AS THOUGH PRISONS MAY RESURRECT AN ECONOMY THAT HAS BEEN BATTERED BY DOWNSIZING IN THE PETROCHEMICAL AND REFINING INDUSTRY THE REGION'S MAINSTAY SINCE WORLD WAR TWO QUOTE THIS IS THE BIGGEST THING SINCE SPINDLETOP FOR US QUOTE SAYS MARK STILES A POWERFUL LOCAL STATE REPRESENTATIVE AS TEXAS EMBARKS ON THE MOST AMBITIOUS PRISON EXPANSION PROJECT IN THE COUNTRY MANY COMMUNITIES AROUND THE STATE ARE HOPING FOR A GUSHER OF THEIR OWN IN CONTRAST TO THE TIME WHEN TOWNS FOUGHT TOOTH AND NAIL TO WARD OFF PRISONS NOW MANY ARE FIGHTING JUST AS HARD TO ATTRACT THEM PARTICULARLY IN RURAL AREAS SUFFERING FROM THE OIL AND GAS DOWNTURN PRISONS ARE VIEWED AS A GODSEND BRINGING CONSTRUCTION CONTRACTS RELATIVELY HIGH PAYING JOBS FOR LOW SKILLED WORKERS AND PERHAPS MOST IMPORTANT STABILITY WE DON'T HAVE TO WORRY ABOUT LAYOFFS SAYS REED SMITH ASSISTANT WARDEN AT THE NEW PRISON HERE I'VE BEEN WITH THEM FIFTEEN YEARS AND I'VE NEVER HEARD OF A LAYOFF BUT THE ECONOMIC IMPACT OF THE PRISON BOOM ISN'T NECESSARILY ALL POSITIVE SETTING ASIDE THE CAPITAL EXPENDITURES THE COST OF OPERATING THE NEW FACILITIES WILL ADD A STAGGERING ONE BILLION DOLLARS TO THE NINETEEN NINETY SIX TO NINETY SEVEN PRISON BUDGET LEADING MANY EXPERTS TO PREDICT A BIG TAX INCREASE AND EVEN THE TOWNS THAT WIN THE PRISON LOCATION DERBY MAY PROSPER LESS THAN THEY EXPECT SINCE STATE INMATES RAISE MOST OF THEIR OWN FOOD MAKE THEIR OWN CLOTHES AND EVEN PRODUCE THE STAINLESS STEEL FIXTURES FOR THEIR CELLS THERE'S A LIMITED NEED FOR LOCAL PURCHASES SOME SKEPTICS ALSO WONDER WHETHER COMMUNITIES ARE GIVING AWAY TOO MUCH FOR THE SITES AWARDED BETWEEN NINETEEN EIGHTY SEVEN AND NINETEEN NINETY TWO TOWNS WERE GENERALLY REQUIRED TO PROVIDE FREE SEWAGE AND WATER HOOKUPS AND DONATE LARGE TRACTS OF LAND WHICH WERE THEN TAKEN OFF PROPERTY TAX ROLLS FINALLY SOME OPPONENTS CONTEND THAT PRISONS HURT DEVELOPMENT BY SCARING OFF OTHER BUSINESSES AND DRIVING DOWN PROPERTY VALUES LAST MONTH HUNDREDS OF GRAND PRAIRIE RESIDENTS TURNED OUT TO PROTEST A PROPOSAL TO PLACE A STATE JAIL THERE BUT NONE OF THIS HAS QUELLED BEAUMONT'S ENTHUSIASM FOR THE PRISONS ESPECIALLY WITH CHEMICAL AND REFINING EMPLOYMENT IN THE REGION DOWN ABOUT NINE THOUSAND THREE HUNDRED FIFTY JOBS OR THIRTY NINE PERCENT BELOW ITS NINETEEN EIGHTY ONE PEAK INDEED LOCAL HOME BUILDERS AGREED TO DONATE A THREE THOUSAND SQUARE FOOT HOUSE FOR THE NEW WARDEN TO USE THE CITY AND COUNTY MEANWHILE SPENT ABOUT TEN MILLION DOLLARS FOR LAND UTILITIES AND OTHER INFRASTRUCTURE THE RETURN ON THIS INVESTMENT ROUGHLY THREE HUNDRED FIFTY MILLION DOLLARS OF NEW DETENTION FACILITIES AND AN IMMEDIATE BOOM IN CONSTRUCTION RELATED JOBS SOME FOUR THOUSAND OVER THE NEXT THREE YEARS ONE EARLY BENEFICIARY WAS REPRESENTATIVE STILES WHO RUNS THE CONCRETE SUBCONTRACTOR FOR THE NEW MAXIMUM SECURITY PRISON WHICH INCIDENTALLY IS NAMED THE MARK W. STILES UNIT HE POINTS OUT THAT HE WAS THE LOW BIDDER OVER THE LONG TERM THE WINNERS WILL BE THE FACILITIES' THREE THOUSAND SEVEN HUNDRED EMPLOYEES TYPICAL IS TIM LEBLANC A THIRTY EIGHT YEAR OLD FORMER REFINERY EMPLOYEE AND PLUMBING CONTRACTOR WHO STRUGGLED THROUGH YEARS OF SPORADIC EMPLOYMENT BEFORE BEING HIRED AS A PRISON PLUMBING SUPERVISOR MR. LEBLANC SAYS THE PAY ABOUT ONE THOUSAND NINE HUNDRED SIXTY DOLLARS A MONTH IS LESS THAN HE WOULD MAKE AT HIS OLD JOBS IN THE FREE WORLD BUT FACTORING IN MEDICAL BENEFITS PERKS SUCH AS FREE HAIRCUTS FROM THE INMATES AND PAID HOLIDAYS HE FIGURES HE COMES OUT ABOUT EVEN MOSTLY HE ADDS IT'S NICE TO GO HOME AND KNOW YOU'RE GOING TO HAVE A JOB NEXT MORNING NOTE DOES NOT INCLUDE FOUR FIVE HUNDRED BED PRIVATE PRE RELEASE CENTERS UNDER CONSTRUCTION OR THE ADDITION OF THIRTEEN THOUSAND FIVE HUNDRED BEDS TO EXISTING UNITS ANOTHER NAIL IN THE COFFIN IN CASE THERE WAS ANY DOUBT ABOUT THE FUTURE OF TEXAS' CURRENT HIGH SPEED RAIL PROJECT GOVERNOR ANN RICHARDS HAS WEIGHED IN WITH A RESOUNDING NO AS REPORTED THE COMPANY WITH THE FRANCHISE TO BUILD THE TWO HUNDRED MPH TRAIN TEXAS TGV CORPORATION FAILED TO MAKE GOOD ON PROMISES TO RAISE ONE HUNDRED SEVENTY MILLION DOLLARS BY A DECEMBER THIRTY FIRST DEADLINE ALTHOUGH STATE HIGH SPEED RAIL OFFICIALS HAVE SAID THE COMPANY IS IN DEFAULT TEXAS TGV HAS YET TO CONCEDE IN A JANUARY TWENTY FIFTH LETTER TO STATE SENATOR JIM TURNER GOVERNOR RICHARDS GAVE HER VIEW QUOTE BY MISSING THE DECEMBER THIRTY FIRST DEADLINE THE CORPORATION HAS DEFAULTED ON THE AGREEMENT QUOTE SHE WROTE I BELIEVE THAT THE AUTHORITY SHOULD REVOKE THE FRANCHISE AMERICA ONLINE INCORPORATED ITS ONLINE COMPUTER SERVICE CLOGGED BY A SHARP RISE IN NEW SUBSCRIBERS SAID IT WILL BEGIN RATIONING ACCESS TO THE SYSTEM DURING PEAK HOURS THE VIENNA VIRGINIA COMPANY WHICH PROVIDES SHOPPING ELECTRONIC MAIL AND NEWS SERVICES HAS SEEN ITS STOCK PRICE RISE STRONGLY ON SURPRISING GROWTH IN ITS SUBSCRIBER BASE AFTER THE COMPANY ANNOUNCED ITS NEW RESTRICTIONS ON ACCESS YESTERDAY ITS SHARES ENDED ONE DOLLAR AND SEVENTY FIVE CENTS LOWER CLOSING AT SIXTY TWO DOLLARS APIECE IN NASDAQ STOCK MARKET TRADING AMERICA ONLINE RECENTLY SAID IT HAD ADDED SEVENTY THOUSAND NEW USERS LAST MONTH ALONE PUSHING ITS TOTAL USER BASE TO SIX HUNDRED THOUSAND FROM LESS THAN HALF THAT NUMBER A YEAR AGO SUCH GAINS HAD SENT THE COMPANY'S SHARE PRICE SOARING RISING TEN DOLLARS SINCE LAST THURSDAY BUT THE EXPLOSIVE GROWTH HAS APPARENTLY EXCEEDED THE COMPANY'S HARDWARE CAPABILITIES WHEN THE SYSTEM OVERLOADS CUSTOMERS END UP GETTING BUSY SIGNALS OR THEY HOOK UP TO THE NETWORK BUT CAN'T GET QUOTE INSIDE QUOTE TO ACCESS ITS VARIOUS SERVICES SOME AMERICA ONLINE SUBSCRIBERS HAVE BEGUN VOICING THEIR FRUSTRATION BY JOINING AN ONLINE DISCUSSION ON THE INTERNET A PUBLIC NETWORK CALLED AOL GOING DOWNHILL WHEN AN AMERICA ONLINE EMPLOYEE SENT A COMPUTER MESSAGE DEFENDING THE COMPANY ONE USER RETORTED THAT THE EMPLOYEE SHOULD GET A CLUE AND DEMANDED THAT THE COMPANY IMPROVE ACCESS AND CUSTOMER SUPPORT AMERICA ONLINE DECLINED YESTERDAY TO SPECIFY THE NUMBER OF USERS IT WILL ALLOW ONTO THE SYSTEM DURING PEAK HOURS EACH EVENING ANALYSTS ESTIMATE THAT THE SYSTEM CAN SERVE AT MOST EIGHT THOUSAND USERS AT A TIME BUT THAT IT NEEDS TO SERVE TWICE THAT NUMBER SIMULTANEOUSLY THE CAPACITY PROBLEM ALSO HAS DELAYED THE ROLL OUT OF NEW INTERNET SERVICES THAT THE COMPANY HAD SAID WOULD START APPEARING BY LATE LAST MONTH ANALYSTS VIEW THAT AS A GOOD THING FOR THE MOMENT BECAUSE A NEW ARRAY OF INTERNET SERVICES WOULD INVITE NEW USERS TO SUBSCRIBE AND ADD TO THE COMPANY'S CURRENT OVERLOAD ALTHOUGH WALL STREET ANALYSTS REMAIN BULLISH ON THE COMPANY SOME ISSUE THE CAUTION THAT IF ACCESS PROBLEMS PERSIST THE SERVICE RISKS A BACKLASH IT ISN'T A PLEASANT THING FOR ANY SUBSCRIBER SAID RICK MARTIN ANALYST FOR CHICAGO CORPORATION ADDING THAT THE COMPANY'S CURRENT DIFFICULTIES WOULD CAUSE IT TO LOSE SOME USERS BUT NOT CORE SUBSCRIBERS THE COMPANY SAID IT HAS PURCHASED HARDWARE AND HIRED ADDITIONAL PERSONNEL TO EXPAND THE CAPACITY OF THE NETWORK IN A LETTER TO SUBSCRIBERS THE COMPANY SAID IF THESE PROBLEMS HAVE RESULTED IN YOU FEELING YOU ARE OVERPAYING FOR THE SERVICE WE'LL MAKE AN APPROPRIATE ADJUSTMENT PROMISING POSSIBLE REFUNDS WE'RE TAKING THE PROBLEM SERIOUSLY STEVE CASE AMERICA ONLINE'S PRESIDENT SAID BUT HE ADDED QUOTE IT APPEARS TO US THAT THE MAJORITY OF OUR CUSTOMERS AREN'T AFFECTED BY THIS IT REALLY HAS TO DO WITH THE PEAK USAGE PERIODS FOR WEEKS THE CLINTON ADMINISTRATION HAS IMPLORED JAPANESE POLITICAL LEADERS TO SAVE STALLED TRADE TALKS BY ARM TWISTING THEIR COUNTRY'S INTRANSIGENT BUREAUCRAT NEGOTIATORS WASHINGTON MAY BE DISAPPOINTED QUOTE NUMERICAL TARGETS ARE LIKE MANAGED TRADE AND GOVERNMENT INVOLVEMENT IN THE PRIVATE SECTOR QUOTE FOREIGN MINISTER TSUTOMU HATA SAID YESTERDAY ATTACKING THE CORE U. S. DEMAND IN THE SO CALLED FRAMEWORK NEGOTIATIONS MR. HATA'S REMARKS CAME JUST HOURS BEFORE U. S. TRADE REPRESENTATIVE MICKEY KANTOR LANDED IN TOKYO FOR EMERGENCY TALKS WITH MR. HATA AND OTHER LEADERS THE TWO COUNTRIES HAVE LESS THAN TWO WEEKS TO REACH AN AGREEMENT BEFORE PRIME MINISTER MORIHIRO HOSOKAWA MEETS PRESIDENT CLINTON IN WASHINGTON SINCE TAKING OFFICE SIX MONTHS AGO MR. HOSOKAWA AND HIS CABINET HAVE BEEN UNUSUALLY FRANK ABOUT THEIR NEED TO CURB BUREAUCRATIC POWER THAT HAS ENCOURAGED U. S. OFFICIALS TO TRY TO TAKE ADVANTAGE OF THOSE APPARENT DIVISIONS BUT SO FAR AT LEAST JAPAN'S POLITICIANS HAVEN'T SHOWN ANY SIGN OF SIDING WITH THE U. S. AGAINST JAPAN'S MANDARINS INDEED MR. HATA ARGUED YESTERDAY THAT U. S. DEMANDS SUCH AS GOVERNMENT AGREEMENTS SETTING GOALS TO INCREASE FOREIGN AUTOPARTS SALES IN JAPAN CONTRADICT MR. HOSOKAWA'S PLEDGE TO REDUCE GOVERNMENT INVOLVEMENT IN THE ECONOMY DEPUTY TREASURY SECRETARY ROGER ALTMAN DISMISSED MR. HATA'S REMARKS AS RHETORIC AND PUBLIC RELATIONS ESTRANGED HUSBANDS AND WIVES DON'T JUST SUE FOR DIVORCE THESE DAYS THEY SUE FOR DAMAGES AND FREQUENTLY THEY WIN UNDER A DEVELOPING LEGAL SPECIALTY KNOWN AS DOMESTIC TORTS CLAIMS OF INJURY FROM WRONGFUL CONDUCT IN A MARRIAGE ARE LEADING TO SIZABLE AWARDS FOR SUCH OFFENSES AS ASSAULT INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS FRAUD AND WIRETAPPING QUOTE JUST ABOUT ANYTHING THAT CAN BE A TORT BETWEEN TWO STRANGERS IS NOW ACTIONABLE BETWEEN TWO SPOUSES QUOTE SAYS EDWARD J. O'DONNELL A DIVORCE SPECIALIST AT THE LIVINGSTON N. J. LAW FIRM OF SKOLOFF AND WOLFE YOUR IMAGINATION CAN BE YOUR GUIDE A DECADE AGO SUCH CIVIL DAMAGE CLAIMS WERE VIRTUALLY UNHEARD OF IN MATRIMONIAL LAW THE MAIN REASON WAS SPOUSAL IMMUNITY A WELL RECOGNIZED COMMON LAW DOCTRINE THAT BARS SPOUSES FROM SUING EACH OTHER UNDER IT A MAN AND WOMAN MELDED INTO A SINGLE LEGAL ENTITY UPON MARRIAGE BUT COURTS IN AT LEAST THIRTY NINE STATES HAVE CHIPPED AWAY AT THE PROHIBITION AS INJURY CLAIMS BETWEEN SPOUSES HAVE INCREASED THE ADVENT OF NO FAULT DIVORCE HAS ALSO FUELED THE TREND BY ELIMINATING BLAME AS AN ISSUE IN HOW PROPERTY SHOULD BE DIVIDED NO FAULT LAWS PRECLUDE FINANCIAL REMEDIES FOR SPOUSES WHO FEEL THEY'VE BEEN WRONGED SAYS NEW YORK DIVORCE SPECIALIST HELENE BREZINSKY THE RESULT HAS BEEN AN EXPLOSION OF CIVIL DAMAGE SUITS WHEN A MANILA ARKANSAS WOMAN WAS BEATEN SO SEVERELY BY HER HUSBAND DURING THEIR PENDING DIVORCE THAT SHE NEEDED EXTENSIVE RECONSTRUCTIVE SURGERY ON HER FACE SHE SUED FOR ASSAULT BATTERY AND OUTRAGE A JURY AWARDED HER TEN THOUSAND DOLLARS IN COMPENSATORY DAMAGES AND THREE HUNDRED FIFTY THOUSAND DOLLARS IN PUNITIVE DAMAGES IT IS UNDERSTANDABLE THAT A JURY MIGHT WISH TO PUNISH SUCH CONDUCT AND DETER OTHERS FROM SIMILAR ACTS THE ARKANSAS SUPREME COURT RULED LAST YEAR IN UPHOLDING THE AWARD ANOTHER EXAMPLE INVOLVED A WESTERN ILLINOIS FARMER WHO TRIED TO HIRE A HIT MAN TO KILL HIS ESTRANGED WIFE DURING THEIR DIVORCE A NOT UNCOMMON EVENT FAMILY LAW EXPERTS SAY THE WIFE SUED FOR INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS AND AN ILLINOIS STATE APPEALS PANEL ALLOWED THE CASE TO PROCEED TO TRIAL IT RECENTLY SETTLED OUT OF COURT FOR A SIX FIGURE SUM IN ANOTHER CASE WHEN A PENNSYLVANIA GAS STATION OWNER CONCEALED FROM HIS ESTRANGED WIFE THAT HE WAS NEGOTIATING THE SALE OF A JOINT PROPERTY FOR EIGHT HUNDRED THOUSAND DOLLARS WHEN THE SETTLEMENT AGREEMENT HE SIGNED VALUED THE LAND AT FORTY FIVE THOUSAND DOLLARS SHE SUED FOR FRAUD A JURY AWARDED FORTY THOUSAND DOLLARS IN PUNITIVE DAMAGES AND TWO HUNDRED THOUSAND DOLLARS IN COMPENSATORY DAMAGES HALF THE SALE'S NET PROCEEDS THIS TYPE OF OUTRAGEOUS CONDUCT CAN ONLY BE PUNISHED AND DETERRED BY PUNITIVE DAMAGES THE APPEALS COURT THAT UPHELD THE AWARD DETERMINED QUOTE THIS IS REALLY HOT STUFF QUOTE SAYS LEE ROSEN A RALEIGH N. C. DIVORCE LAWYER AND CHAIRWOMAN OF THE DOMESTIC VIOLENCE COMMITTEE FOR THE FAMILY LAW SECTION OF THE AMERICAN BAR ASSOCIATION SOME OF THE APPELLATE COURTS AROUND THE COUNTRY ARE BEGINNING TO RECOGNIZE THESE CREATIVE CAUSES OF ACTION OF COURSE IT HELPS WHEN THE SPOUSE BEING SUED IS WEALTHY TAKE THE CASE OF JOHN WAYNE BOBBITT THE UNEMPLOYED BAR BOUNCER AND EX MARINE WHO WAS MUTILATED LAST JUNE BY HIS WIFE LORENA BOBBITT SHE ADMITTED ATTACKING HER HUSBAND WITH A KITCHEN KNIFE BUT SAID SHE DID SO AFTER HE RAPED HER IN CRIMINAL CASES HE WAS ACQUITTED OF MARITAL ASSAULT IN NOVEMBER AND SHE WAS FOUND NOT GUILTY OF MALICIOUS WOUNDING BY REASON OF INSANITY NEITHER HAS FILED A CIVIL SUIT AGAINST THE OTHER BEFORE THEIR TRIALS BROUGHT THEM LUCRATIVE BOOK AND MOVIE OFFERS NEITHER BOBBITT OWNED MUCH WORTH SUING OVER IT TAKES THE RIGHT COMBINATION TO SUCCEED ON ONE OF THESE LAWSUITS SAYS HOUSTON DIVORCE EXPERT JOHN F. NICHOLS AT THE TOP OF THE LIST HE SAYS IS A DEEP POCKET NONETHELESS LAWYERS ARE BEGINNING TO EXPLORE NEW AVENUES OF RECOVERY IN DOMESTIC TORTS PARTICULARLY UNDER HOMEOWNER INSURANCE POLICIES THESE USUALLY EXCLUDE COVERAGE FOR DAMAGES FROM INTENTIONAL ACTS BUT INTENTIONAL ACTS THAT RESULT IN UNINTENTIONAL CONSEQUENCES MIGHT BE GROUNDS FOR COVERAGE LAWYERS SAY THAT'S A VERY SERIOUS OPEN QUESTION THAT NOBODY KNOWS THE ANSWER TO YET SAYS NEW JERSEY DIVORCE SPECIALIST GARY SKOLOFF LAWYERS ALSO ARE LOOKING AT COLLECTING POSSIBLE DAMAGES FROM AN EXSPOUSE'S FUTURE EARNINGS OR PENSION PLAN NOT ALL COURTS ARE RUSHING TO EMBRACE NEW GROUNDS FOR DOMESTIC TORTS AND SOME CLAIMS PARTICULARLY EMOTIONAL DISTRESS ARE OPEN TO HIGHLY SUBJECTIVE REVIEW IN HOUSTON THREE YEARS AGO A TEXAS APPEALS COURT FOUND THAT THE WIFE OF A BANK PRESIDENT WAS ENTITLED TO DAMAGES BECAUSE HER HUSBAND HAD TEMPER TANTRUMS DOLED OUT STINGY AMOUNTS OF CASH MADE HER WEAR CHEAP CLOTHES AND BELITTLED HER IN FRONT THEIR DAUGHTER THE WIFE WAS AWARDED THREE HUNDRED SIXTY TWO THOUSAND DOLLARS FOR EMOTIONAL DISTRESS AMONG OTHER CLAIMS ABOUT THE SAME TIME A KENTUCKY APPEALS COURT THREW OUT A SIMILAR CLAIM BY A WOMAN WHOSE HUSBAND ABANDONED HER SPENT THE PROCEEDS FROM THE JOINT SALE OF THEIR HOUSE KEPT THEIR CAR TRIED TO CASH IN HER RETIREMENT PLAN FORGED HER NAME TO CASH IN A JOINT TAX RETURN AND MOVED TO VIRGINIA WITH HIS GIRLFRIEND FRAUD AND ADULTERY MAY BE VERY PAINFUL AND DIFFICULT BUT DOES NOT NECESSARILY IMPLICATE THE TORT OF OUTRAGE OUTRAGEOUS CONDUCT THE APPEAL COURT RULED AND WHILE SOME JUDGES AND JURIES MAY BE GENEROUS IN AWARDING DAMAGES COLLECTING THE MONEY IS ANOTHER MATTER QUOTE MOST OF THESE PEOPLE IN DIVORCE CASES IF YOU HIT THEM TOO HARD THEY JUST GO FILE BANKRUPTCY QUOTE SAYS MR. NICHOLS THE HOUSTON LAWYER WHO REPRESENTED THE BANK PRESIDENT'S WIFE AS SOON AS THE JUDGMENT WAS AFFIRMED ON APPEAL THE HUSBAND FILED FOR PERSONAL BANKRUPTCY WHERE THE DAMAGE AWARD IS STILL MIRED AS FOR THE BOBBITTS EITHER COULD SUE FOR CIVIL DAMAGES UNDER VIRGINIA LAW SAYS MRS. BOBBITT'S LAWYER LISA M. KEMLER ASSAULT FOR HIM SHE SAYS INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS FOR HER NEITHER WANTS TO LAWYERS FOR BOTH SIDES SAY UNLESS THE OTHER STRIKES FIRST IF SHE BROUGHT A SUIT AGAINST HIM SAYS MR. BOBBITT'S LAWYER GREGORY L. MURPHY HE WOULD DEFINITELY COUNTERSUE HER A FEDERAL APPEALS COURT HAS UPHELD A JURY FINDING THAT PAN AMERICAN WORLD AIRWAYS WAS LIABLE FOR WILLFUL MISCONDUCT STEMMING FROM THE NINETEEN EIGHTY EIGHT TERRORIST BOMBING OF PAN AM FLIGHT ONE HUNDRED THREE OVER LOCKERBIE SCOTLAND MONDAY'S TWO TO ONE DECISION BY A THREE JUDGE PANEL OF THE SECOND U. S. CIRCUIT COURT OF APPEALS IN NEW YORK BRINGS VICTIMS' SURVIVORS A STEP CLOSER TO THE PAYMENT OF AN ESTIMATED FIVE HUNDRED MILLION DOLLARS TO SEVEN HUNDRED FIFTY MILLION DOLLARS IN DAMAGES ABOUT TWO HUNDRED TWENTY FIVE CASES WERE CONSOLIDATED IN A THIRTEEN WEEK TRIAL IN BROOKLYN N. Y. IN SPRING NINETEEN NINETY TWO THAT PROCEEDING DECIDED ISSUES OF LIABILITY COMMON TO ALL THE CASES AND ESTABLISHED THE EXTENT OF DAMAGES FOR THREE PASSENGERS TWO LAWYERS WHOSE SURVIVORS RECEIVED ABOUT NINE MILLION DOLLARS EACH AND AN ELECTRICIAN AND PART TIME MUSICIAN WHOSE FAMILY RECEIVED ONE POINT SEVEN MILLION DOLLARS THE APPEALS COURT SAID THE STANDARD FOR THOSE DAMAGE AWARDS WOULD APPLY IN THE REMAINING TWO HUNDRED TWENTY TWO CASES THE APPEALS COURT SUPPORTED THE JURY'S FINDING THAT PAN AM AND ITS SECURITY ARM ALERT MANAGEMENT SYSTEMS INCORPORATED PERMITTED A BREACH OF SECURITY THAT ALLOWED EXPLOSIVES TO BE PLACED IN UNACCOMPANIED LUGGAGE BEFORE FLIGHT ONE HUNDRED THREE LEFT LONDON FOR NEW YORK THE BOMBING KILLED TWO HUNDRED SEVENTY PASSENGERS CREW MEMBERS AND INDIVIDUALS ON THE GROUND UNDER AN INTERNATIONAL TREATY THE WARSAW CONVENTION AN AIRLINE'S LIABILITY FOR DAMAGES IS LIMITED TO SEVENTY FIVE THOUSAND DOLLARS PER PASSENGER BUT LIABILITY IS UNLIMITED IF THERE IS A FINDING OF WILLFUL MISCONDUCT AN APPELLATE COURT PREVIOUSLY RULED THAT PUNITIVE DAMAGES MAY NOT BE COLLECTED UNDER THE TREATY PAN AM WHICH HAS FILED FOR BANKRUPTCY COURT PROTECTION AND BEEN LIQUIDATED SINCE THE CRASH WAS INSURED FOR UP TO SEVEN HUNDRED FIFTY MILLION DOLLARS ITS INSURERS THE LARGEST OF WHICH IS A CONSORTIUM OF FIFTEEN COMPANIES KNOWN AS U. S. AVIATION INSURANCE GROUP ARE LIABLE FOR DAMAGES STEMMING FROM THE BOMBING ACCORDING TO LEE S. KREINDLER THE PLANTIFFS' LEAD ATTORNEY ATTORNEYS FOR THE AIRLINE WHICH COULD SEEK A HEARING BEFORE THE FULL APPEALS COURT OR THE U. S. SUPREME COURT DID NOT RETURN CALLS SEEKING COMMENT LAWYERS FOR AN ATTORNEY WHO WAS FIRED FROM BAKER AND MCKENZIE BECAUSE HE HAD AIDS SUED THE MAKERS OF PHILADELPHIA THE HIT MOVIE THAT RELATES A SIMILAR STORY THE LAWSUIT WAS FILED BY THE TWO NEW YORK ATTORNEYS WHO REPRESENTED FORMER BAKER AND MCKENZIE ASSOCIATE GEOFFREY BOWERS ON BEHALF OF THEMSELVES MR. BOWERS'S FAMILY AND HIS ESTATE THE COMPLAINT ALLEGES THAT DETAILS OF MR. BOWERS'S STRUGGLE AGAINST HIS ILLNESS AND AGAINST HIS LAW FIRM WERE MISAPPROPRIATED BY TRISTAR PICTURES THE HOLLYWOOD STUDIO THAT PRODUCED PHILADELPHIA ALSO NAMED IN THE SUIT WERE A PRODUCER SCOTT RUDIN AND THE FILM'S SCREENWRITER RON NYSWANER PRODUCER ED SAXON AND DIRECTOR JONATHAN DEMME YESTERDAY A TRISTAR SPOKESMAN SAID THE COMPANY HAD NOT SEEN THE SUIT BUT DESCRIBED IT AS MERITLESS SAYING QUOTE PHILADELPHIA QUOTE IS A FICTIONAL STORY PHILADELPHIA STARRING TOM HANKS HAS GROSSED THIRTY SIX POINT SIX MILLION DOLLARS SINCE IT OPENED DECEMBER TWENTY SECOND THE STRONG RESULTS THE FILM WAS NUMBER ONE IN THE BOX OFFICE FOR TWO CONSECUTIVE WEEKENDS HAVE SURPRISED INDUSTRY EXECUTIVES WHO HAD WORRIED THAT A SOBERING ACCOUNT OF AIDS DISCRIMINATION MIGHT PUT OFF MOVIEGOERS INSTEAD THE FILM IS DOING SO WELL THAT TRISTAR A UNIT OF SONY CORPORATION'S SONY PICTURES ENTERTAINMENT IS EXPANDING ITS RELEASE MR. BOWERS DIED AT AGE THIRTY THREE IN SEPTEMBER NINETEEN EIGHTY SEVEN WHILE IN THE MIDST OF A DISCRIMINATION HEARING AGAINST BAKER AND MCKENZIE BEFORE THE NEW YORK STATE DIVISION OF HUMAN RIGHTS IN A RECENT RULING THE STATE FINED THE CHICAGO BASED LAW FIRM THE COUNTRY'S LARGEST FIVE HUNDRED THOUSAND DOLLARS THE SUIT AGAINST THE MOVIE MAKERS ALLEGES THAT MR. RUDIN CONTACTED MR. BOWERS'S LAWYERS ROBERT BALSAM AND DANIEL FELBER AND PROMISED THEM COMPENSATION IN RETURN FOR THE SOLE RIGHT TO MAKE A MOVIE BASED ON THEIR INFORMATION MR. RUDIN WAS GIVEN UNLIMITED ACCESS TO THE LAWYERS AND FAMILY MEMBERS ACCORDING TO THE COMPLAINT BUT SIGNED OVER HIS RIGHTS TO MR. SAXON WHO LANDED THE PROJECT AT TRISTAR THE ORAL CONTRACT FOR COMPENSATION HAD TO BE FULFILLED REGARDLESS OF WHETHER INFORMATION ABOUT THE BOWERS ULTIMATELY BECAME AVAILABLE FROM PUBLIC RECORDS MR. BALSAM SAID RADIATION SUIT A LAWSUIT SEEKING CLASS ACTION STATUS HAS BEEN FILED ON BEHALF OF EIGHT HUNDRED WOMEN WHO ALLEGEDLY WERE VICTIMS OF COLD WAR RADIATION EXPERIMENTS THE SUIT FILED IN NASHVILLE TENNESSEE BY SAN FRANCISCO PLAINTIFFS LAWYER MELVIN BELLI AND LIEFF CABRASER AND HEIMANN ALLEGES THAT THE WOMEN WHO WERE PREGNANT AT THE TIME WERE EXPOSED TO RADIOACTIVE IRON AT THE VANDERBILT UNIVERSITY HOSPITAL IN THE NINETEEN FORTIES IT IS BELIEVED TO BE THE FIRST CLASS ACTION FILED SINCE ENERGY SECRETARY HAZEL O'LEARY ACKNOWLEDGED IN DECEMBER THAT THE GOVERNMENT HAD AUTHORIZED RADIATION EXPERIMENTS EDWARD FELSENTHAL AND MARGARET A. JACOBS CONTRIBUTED TO THIS ARTICLE AN ANADARKO PETROLEUM CORPORATION UNIT SAID IT HAD A SECOND OIL DISCOVERY IN THE SAHARA DESERT IN ALGERIA THE HBN NUMBER ONE WELL IN THE GHADAMES BASIN ON BLOCK FOUR HUNDRED FOUR WAS DRILLED TO A TOTAL DEPTH OF ELEVEN THOUSAND TWO HUNDRED FIFTY ONE FEET AND FLOWED AT A RATE OF FOUR THOUSAND NINE HUNDRED BARRELS PER DAY OF FORTY TWO DEGREES A. P. I. GRAVITY CRUDE OIL AND SIX POINT THREE MILLION CUBIC FEET OF GAS PER DAY THROUGH A THREE QUARTERS INCH CHOKE WITH ONE THOUSAND THREE HUNDRED THIRTY POUNDS PER SQUARE INCH OF FLOWING TUBING PRESSURE PERFORATIONS WERE BETWEEN TEN THOUSAND SIX HUNDRED TWENTY ONE AND TEN THOUSAND SEVEN HUNDRED THIRTY TWO FEET PARTNERS IN THE VENTURE INCLUDE ANADARKO ALGERIA CORPORATION AND SONATRACH THE NATIONAL OIL AND GAS ENTERPRISE OF ALGERIA AND OTHERS ANADARKO PETROLEUM IS A NATURAL GAS AND CRUDE OIL EXPLORATION AND PRODUCTION COMPANY SONATRACH OWNS TEN POINT TWO PERCENT OF ANADARKO'S COMMON STOCK CALIFORNIA'S GIANT STATE EMPLOYEE PENSION SYSTEM TURNED TO THE CORPORATE WORLD FOR A NEW TOP INVESTMENT STRATEGIST NAMING SHERYL PRESSLER CHIEF INVESTMENT OFFICER EFFECTIVE APRIL FIRST MS. PRESSLER WHO HAS BEEN OVERSEEING EIGHT BILLION DOLLARS IN EMPLOYEE BENEFIT FUNDS OF MCDONNELL DOUGLAS CORPORATION SAINT LOUIS WILL SUCCEED DEWITT BOWMAN WHO IS RETIRING FROM THE HELM OF THE EIGHTY TWO BILLION DOLLAR FUND OPERATED BY THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM DALE HANSON WILL REMAIN AS CALPERS'S CHIEF EXECUTIVE OFFICER DURING HIS FIVE YEAR TENURE MR. BOWMAN TURNED CALPERS THE NATION'S LARGEST PENSION PLAN INTO A DEMANDING POLITICAL AND CORPORATE FORCE HE HELPED INCREASE FUND ASSETS BY SEVENTY THREE PERCENT AND CHALLENGED SOME OF THE NATION'S LARGEST CORPORATIONS OVER THEIR LACKLUSTER PERFORMANCE MS. PRESSLER WILL BE PAID ONE HUNDRED SEVENTY FIVE THOUSAND DOLLARS ABOUT FIVE THOUSAND DOLLARS MORE THAN HER PREDECESSOR BUT CONSIDERABLY LESS THAN MOST MANAGERS OF LARGE PRIVATE INVESTMENT FUNDS CALPERS SAID MR. BOWMAN WILL ASSIST IN THE TRANSITION TO MS. PRESSLER WHO HAS THIRTEEN YEARS EXPERIENCE IN PENSION MANAGEMENT BESIDES HER SALARY MS. PRESSLER WILL RECEIVE INCENTIVE COMPENSATION BASED UP HER SUCCESS IN ACHIEVING PERFORMANCE OBJECTIVES ESTABLISHED BY THE CALPERS BOARD MS. PRESSLER HAS A MASTER OF BUSINESS ADMINISTRATION DEGREE FROM WASHINGTON UNIVERSITY THE CALPERS POST IS ONE OF THE MOST PRIZED IN THE WORLD OF PUBLIC PENSION PLANS MS. PRESSLER WILL HELP PIONEER A NOVEL QUOTE RELATIONSHIP INVESTING QUOTE FUND THE PREVIOUSLY PROPOSED FUND TO BE MANAGED INTERNALLY IS THE LATEST MOVE IN CALPERS'S SHAREHOLDER ACTIVISM CURRENTLY CALPERS'S HOLDINGS IN TARGETED COMPANIES ARE DETERMINED ACCORDING TO AN INVESTMENT POLICY OF INDEXATION UNDER WHICH CALPERS BUYS SHARES IN COMPANIES TO MIMIC CERTAIN STOCK MARKET INDEXES CALPERS IS NOW TARGETING TEN COMPANIES AND ITS BOARD ANNOUNCED JANUARY NINETEENTH THAT IT'S GEARING UP FOR SPRING PROXY FIGHTS OVER CORPORATE GOVERNANCE ISSUES AT THREE OF THEM BOISE CASCADE CORPORATION U. S. SHOE CORPORATION AND ZENITH ELECTRONICS CORPORATION CALPERS CURRENTLY HAS ABOUT FORTY PERCENT OF ITS INVESTMENTS IN STOCKS AND THIRTY PERCENT IN BONDS THE REST IS IN MORTGAGE SECURITIES REAL ESTATE AND CASH EQUIVALENTS BUT CALPERS HAS OCCASIONALLY TAKEN BOLD BETS INCLUDING ILL TIMED BETS ON REAL ESTATE AND INTERNATIONAL STOCKS SEVERAL YEARS AGO CALPERS MISSED OUT TO SOME EXTENT ON THE U. S. BULL MARKET BECAUSE OF ITS MODEST COMMITMENT TO DOMESTIC STOCKS IN THE NINETEEN EIGHTIES THE FUND'S ANNUALIZED TOTAL RETURN FOR THE FIVE YEARS THROUGH SEPTEMBER THIRTIETH NINETEEN NINETY THREE WAS TWELVE POINT THREE PERCENT THAT IS BELOW THE MEDIAN FOR PUBLIC EMPLOYEE PENSION FUNDS OF TWELVE POINT FOUR PERCENT ACCORDING TO WILSHIRE ASSOCIATES INCORPORATED A PENSION CONSULTING FIRM IN SANTA MONICA CALIFORNIA FOR THE TWELVE MONTHS THROUGH SEPTEMBER HOWEVER CALPERS'S FIFTEEN PERCENT RETURN BEAT THE FOURTEEN POINT TWO PERCENT MEDIAN ZENITH ELECTRONICS CORPORATION SAID THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM HAS JUST WITHDRAWN A SHAREHOLDER PROPOSAL SEEKING TO CREATE A LEAD INDEPENDENT DIRECTOR AT ZENITH AFTER GAINING ADDITIONAL INSIGHT ABOUT THE COMPANY'S GOVERNANCE HENCE ZENITH SAYS IT SHOULDN'T HAVE BEEN INCLUDED IN AN ARTICLE WEDNESDAY AS ONE OF THE COMPANIES TARGETED BY CALPERS FOR SPRING PROXY FIGHTS ABOUT CORPORATE GOVERNANCE ISSUES RONALD LEVY FIFTY FIVE YEARS OLD AND VICE PRESIDENT OF ARTHUR D. LITTLE INCORPORATED A CAMBRIDGE MASSACHUSETTS CONSULTING CONCERN WAS ELECTED A DIRECTOR OF THIS MAKER OF PROTECTIVE TAPES AND COATINGS MR. LEVY FILLS ONE OF THE VACANCIES CREATED BY THREE RECENT RETIREMENTS YOU WOULD THINK THAT LANCER CORPORATION HAD A ROTTEN FINANCIAL TRACK RECORD A RECENT PHONE CALL TO THE SAN ANTONIO MANUFACTURER OF BEVERAGE DISPENSING EQUIPMENT ELICITED THIS IRRITATED RESPONSE FROM THE WOMAN WHO ANSWERED QUOTE WELL WHAT MAKES YOU THINK WE WANT TO TALK ABOUT THAT DON'T YOU THINK IT SHOULD BE OUR DECISION IF WE WANT OUR COMPANY IN THE NEWSPAPER OR NOT REPORTERS AREN'T THE ONLY ONES WHO GET THE COLD SHOULDER INVESTORS AND STOCK ANALYSTS SAY IT'S NEARLY IMPOSSIBLE TO SQUEEZE ANYTHING OUT OF SECRETIVE LANCER SAVE FOR THE QUARTERLY AND YEARLY FILINGS IT MUST MAKE AS A PUBLICLY TRADED ENTITY ONE MONEY MANAGER EVEN CALLED COCA COLA LANCER'S MAIN CUSTOMER IN SEARCH OF INSIGHT COKE INSTEAD OF MAKING ANY COMMENTS CALLED LANCER LANCER PHONED THE MONEY MANAGER AND WARNED HIM TO STOP SNOOPING THIS IS JUST A BIZARRE LITTLE COMPANY YOU'D THINK THEY'RE ON A SPY MISSION SAYS YET ANOTHER MONEY MANAGER WHO LIKE MOST PEOPLE CONTACTED FOR THIS ARTICLE SAYS HE DOESN'T WANT TO BE NAMED FOR FEAR OF ANGERING LANCER FUNNY THING IS LANCER DOESN'T APPEAR TO BE ROTTEN AT ALL IN FACT IT HAS BEEN RACKING UP THE KINDS OF NUMBERS THAT WOULD MAKE MOST COMPANIES CROW FOR THE LATEST NINE MONTHS LANCER HAD PROFIT OF ONE POINT NINE MILLION DOLLARS OR EIGHTY ONE CENTS A SHARE AN EIGHTY SEVEN PERCENT INCREASE OVER THE ONE MILLION DOLLARS OR FORTY FOUR CENTS A SHARE EARNED IN THE YEAR EARLIER PERIOD EXCLUDING EXTRAORDINARY ITEMS REVENUE IS GROWING AT ABOUT A THIRTY PERCENT ANNUAL CLIP THE STOCK PRICE HAS MORE THAN DOUBLED IN THE PAST YEAR INCLUDING A THIRTY PERCENT JUMP SINCE DECEMBER THIRTY FIRST LANCER CURRENTLY TRADES AROUND EIGHTEEN DOLLARS THEY'VE GOT INCREDIBLE GROWTH AHEAD OF THEM JUST INCREDIBLE SAYS DALLAS MONEY MANAGER FREDERICK SHAD ROWE THE ONLY VOICE WILLING TO BE QUOTED AND WHO IN THE SAME BREATH NOTES THAT LANCER IS RUN BY JUST A BUNCH OF CRANKY GRUMPY OLD MEN THE SECRET TO LANCER'S SUCCESS AND ITS POPULARITY WITH WALL STREET DESPITE MANAGEMENT'S DEMEANOR IS ITS EXPERTISE AT THE SURPRISINGLY COMPLICATED TASK OF MAKING SODA FOUNTAIN DISPENSERS FOUNDED IN NINETEEN SIXTY SEVEN BY BROTHERS ALFRED AND GEORGE SCHROEDER WHO WERE FIFTY SIX AND FIFTY THREE YEARS OLD RESPECTIVELY LAST YEAR ACCORDING TO A COMPANY PROXY STATEMENT THE FAMILY RUN BUSINESS HAS WON REKNOWN FOR DESIGNING STATE OF THE ART VALVES THAT GUARANTEE JUST THE RIGHT BLEND OF SYRUP AND CARBONATED WATER TO MAKE YOUR COKE TASTE WELL LIKE COKE THIS ISN'T AS EASY AS IT SOUNDS TO ENSURE CONSISTENCY FOUNTAIN EQUIPMENT MUST TAKE INTO ACCOUNT VARIOUS FACTORS SUCH AS SYRUP THICKNESS CARBONATION HUMIDITY TEMPERATURE AND PRESSURE AS IT TURNS OUT LANCER HAS THE BEST DISPENSING VALVE IN THE WORLD REPORTS MR. ROWE WHOSE FUND OWNS ABOUT FIVE POINT EIGHT PERCENT OF THE COMPANY'S SHARES OUTSTANDING SO SUPERB IS THIS SYSTEM AT MIXING THE PERFECT SOFT DRINK THAT COCA COLA HAS LASSOED LANCER AS ITS DISPENSER MAKER OF CHOICE AND ACCORDING TO SOME MONEY MANAGERS HAS REBUFFED RIVAL PEPSICO'S ATTEMPTS TO HORN IN UNDER AGREEMENTS WITH COCA COLA LANCER IS OBLIGATED TO MAKE ITS MANUFACTURING EXPERTISE AVAILABLE SOLELY FOR THE BENEFIT OF THE ATLANTA COLA CONCERN LANCER FIXTURES REPUTEDLY DISPENSE NINETY FIVE PERCENT OF COKE'S FOUNTAIN BUSINESS WORLD WIDE AS FOR THE OTHER FIVE PERCENT THE MAKERS OF THAT EQUIPMENT RELY ON LANCER COMPONENTS AS A RESULT COCA COLA ACCOUNTS FOR ABOUT THREE FOURTHS OF LANCER'S NET SALES WHEREVER YOU FIND A COKE COMING OUT OF A FOUNTAIN ONE FOLLOWER SAYS YOU CAN BET IT'S PROBABLY COMING OUT OF A LANCER DISPENSER THE DOWNSIDE OF SUCH DEPENDENCE OF COURSE COMES IF ANOTHER COMPANY UNCORKS A BETTER WAY OF DISPENSING THE PERFECT FOUNTAIN COKE LANCER COULD SEE ITS SALES SPIGOT SHUT OFF NO ONE FORESEES THAT THOUGH NAMELY BECAUSE COCA COLA HELPS FUND LANCER'S RESEARCH AND DEVELOPMENT THE FORECASTS OF CONTINUED GROWTH ARE BASED LARGELY ON THE RAPIDLY GROWING MARKET FOR FOUNTAIN DISPENSED DRINKS OVERSEAS WHILE THE U. S. MARKET HAS GONE FLAT QUOTE FOREIGN MARKETS ARE GOING THROUGH WHAT THE U. S. DID TEN AND TWENTY YEARS AGO WITH THE GROWTH OF FAST FOOD OUTLETS QUOTE SAYS ROBERT NICOLSON CHIEF FINANCIAL OFFICER AT ANOKA MINNESOTA BASED I. M. I. CORNELIUS THE WORLD'S LARGEST MAKER OF FOUNTAIN DISPENSING SYSTEMS AND A UNIT OF BRITISH CONGLOMERATE I. M. I. P. L. C. MR. NICOLSON RATES LANCER HIS EMPLOYER'S MOST RESPECTED COMPETITOR THE ONLY THING MORE DIFFICULT THAN GETTING INFORMATION FROM LANCER IS SNAPPING UP SHARES OF ITS STOCK ONLY TWO POINT THREE SIX MILLION SHARES EXIST OF THAT MANAGEMENT OWNS JUST UNDER ONE MILLION SHARES WHILE LARGE BLOCK SHAREHOLDERS CONTROL ANOTHER FIVE HUNDRED THOUSAND OR SO EVEN COMPETITORS ARE SAID TO HOLD STAKES THUS THE NUMBER OF TRADABLE SHARES IS THOUGHT TO BE LESS THAN THREE HUNDRED THOUSAND WHEN ONE MONEY MANAGER TRIED TO PICK UP FIVE THOUSAND SHARES RECENTLY HE COULDN'T FIND ENOUGH SELLERS BUT HIS EFFORTS CAUSED THE STOCK TO RISE FIVE DOLLARS A SHARE IN THREE DAYS ONE GROUP EXCITED ABOUT LANCER'S PROSPECTS ALTHOUGH IT PLAYS DOWN ITS INTEREST IS DALLAS BASED G. H. S. MANAGEMENT LAST MONTH THE MONEY MANAGEMENT FIRM ANNOUNCED ONLY BECAUSE SECURITIES AND EXCHANGE COMMISSION LAWS MANDATE AS MUCH THAT IT HAD ACCUMULATED A NINE POINT TWO PERCENT STAKE IN LANCER STOCK HOWEVER THAT'S AS FAR AS G. H. S. MANAGEMENT WILL GO WITH PUBLIC DISCLOSURE OWNER JIM SMITH DECLINES TO DISCUSS LANCER SIMILARLY A CALL TO NEW YORK BROKER SLASH DEALER NEUBERGER AND BERMAN WHICH OWNS MORE THAN SIX PERCENT OF THE COMPANY'S SHARES GENERATES LITTLE MORE THAN WE DON'T REALLY DON'T CARE TO COMMENT ON SUCH MATTERS SOFTWARE SPECTRUM SHARES DROPPED FIVE DOLLARS AND SEVENTY FIVE CENTS OR NEARLY TWENTY FIVE PERCENT AFTER A PIPER JAFFRAY ANALYST DOWNGRADED THE STOCK TO REASONABLY PRICED FROM BUY THE GARLAND BASED RESELLER OF MICROCOMPUTER BUSINESS SOFTWARE LAST WEEK REPORTED THIRD QUARTER NET INCOME OF FORTY ONE CENTS A SHARE COMPARED WITH FORTY EIGHT CENTS A YEAR AGO PIPER JAFFRAY HAD ESTIMATED SIXTY CENTS FOR THE PERIOD COOPER INDUSTRIES DROPPED MORE THAN TWENTY PERCENT AFTER THE COMPANY ANNOUNCED THAT IT ANTICIPATES A SIGNIFICANT DECLINE IN EARNINGS AS MUCH AS TWENTY FIVE PERCENT FOR NINETEEN NINETY FOUR THE HOUSTON BASED DIVERSIFIED MANUFACTURING COMPANY ATTRIBUTES THE EXPECTED DECLINE TO THE RECENT DROP IN OIL PRICES WHICH IS AFFECTING THE COMPANY'S PETROLEUM AND INDUSTRIAL EQUIPMENT UNIT AS A RESULT COOPER SAID OPERATING EARNINGS AT PETROLEUM AND INDUSTRIAL COULD DROP BY ABOUT SEVENTY FIVE PERCENT PIZZA INN AND PILGRIM'S PRIDE GAINED FIFTEEN PERCENT AND EIGHT POINT TWO PERCENT RESPECTIVELY THANKS TO IMPROVED EARNINGS FOR THE SIX MONTHS ENDED DECEMBER TWENTY SIXTH PIZZA INN OF DALLAS REPORTED NET INCOME OF NINE HUNDRED EIGHTY EIGHT THOUSAND DOLLARS OR SEVEN CENTS A SHARE COMPARED WITH SEVEN HUNDRED EIGHTY SEVEN THOUSAND DOLLARS OR SIX CENTS A SHARE A YEAR AGO THE PIZZA CONCERN ALSO NOTED THAT SALES AT STORES OPEN A YEAR OR MORE INCREASED FIVE PERCENT IN THE FIRST SIX MONTHS PILGRIM'S PRIDE OF PITTSBURG A PRODUCER OF CHICKEN PRODUCTS REPORTED THAT FOR THE FISCAL FIRST QUARTER ENDED JANUARY FIRST NET INCOME JUMPED TO EIGHT POINT FOUR MILLION DOLLARS OR THIRTY ONE CENTS A SHARE COMPARED WITH LAST YEAR'S SIX POINT EIGHT MILLION DOLLARS OR TWENTY FIVE CENTS A SHARE ZONAGEN WITH A TINY MARKET CAPITALIZATION OF ABOUT THIRTY SEVEN MILLION DOLLARS POPPED UP MONDAY ON THE BIOWORLD FINANCIAL WATCH LIST OF LAST WEEK'S TOP GAINERS ZONAGEN THE WOODLANDS BASED BIOMEDICAL CONCERN JUMPED TWENTY ONE PERCENT TO ELEVEN DOLLARS A SHARE THE COMPANY NAMED ROBERT S. SCHENKEN A NATIONALLY RECOGNIZED FEMALE INFERTILITY AND ENDOMETRIOSIS EXPERT AS CHIEF SCIENTIFIC ADVISER FEMALE INFERTILITY A ONE TWO PUNCH COMBINATION SENT THE U. S. TREASURY MARKET REELING YESTERDAY FIRST THERE WERE HINTS OF A STRONGER ECONOMY AND RISING INFLATION IN THE LATEST MONTHLY SURVEY BY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT THEN CAME THE SURPRISE RESIGNATION OF A TOP FEDERAL RESERVE OFFICIAL THE BENCHMARK THIRTY YEAR TREASURY BOND DROPPED MORE THAN A POINT OR MORE THAN TEN DOLLARS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY NINE AND ONE THIRTY SECOND ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO SIX POINT THREE ONE PERCENT FROM SIX POINT TWO THREE PERCENT MONDAY BEFORE ANY MAJOR NEWS ITEMS REACHED THE MARKET PRICES OF SHORT TERM TREASURY SECURITIES CAME UNDER PRESSURE AS DEALERS CONSIDERED COMMENTS MADE BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN ON MONDAY MR. GREENSPAN SPEAKING BEFORE A CONGRESSIONAL PANEL HAD WARNED THAT AT SOME POINT THE FED MUST RAISE SHORT TERM INTEREST RATES THEN AT MID MORNING THE ASSOCIATION REPORTED THAT ITS JANUARY INDEX OF MANUFACTURING CONDITIONS ROSE TO FIFTY SEVEN POINT SEVEN FROM FIFTY SEVEN POINT ONE IN DECEMBER THE SLIGHT RISE CONTRASTED WITH EXPECTATIONS THAT THE INDEX WOULD SLIP BECAUSE OF THE COLD WEATHER THAT GRIPPED MUCH OF THE EASTERN U. S. LAST MONTH EVEN MORE TROUBLING TO THE BOND MARKET THE ASSOCIATION'S PRICE INDEX RAISED CONCERNS THAT THE TORRID PACE OF GROWTH IN LATE NINETEEN NINETY THREE MIGHT FINALLY BE CREATING PRODUCTION BOTTLENECKS THAT IN TURN ARE FORCING BUSINESS TO RAISE PRICES THE PRICE INDEX ROSE TO FIFTY NINE POINT EIGHT FROM FIFTY ONE POINT THREE IN DECEMBER SHORTLY AFTER THE FEDERAL RESERVE ANNOUNCED THAT VICE CHAIRMAN DAVID MULLINS HAD RESIGNED TO TAKE A PRIVATE SECTOR JOB HIS RESIGNATION MEANS THERE ARE NOW TWO FED VACANCIES FOR PRESIDENT CLINTON TO FILL AS FED GOVERNOR WAYNE ANGELL'S TERM ALSO EXPIRES THIS MONTH THE RESIGNATION OF MR. MULLINS QUOTE CAUGHT THE MARKET OFFSIDE QUOTE SAID RON CONNORS MANAGER OF GOVERNMENT SECURITIES TRADING AT BEAR STEARNS AND WHAT IT DID WAS TO ADD A DEGREE OF POLITICAL UNCERTAINTY ABOUT THE FED'S COMMITMENT TO STRIKE PRE EMPTIVELY AT INFLATION THAT UNCERTAINTY WAS ESPECIALLY PUNISHING FOR LONGER TERM SECURITIES AFTER HOLDING UP RELATIVELY WELL THROUGH EARLY TRADING THE TEN YEAR NOTE AND THIRTY YEAR BOND ENDED UP SUFFERING THE WORST DECLINES THE TEN YEAR NOTE DROPPED MORE THAN FIVE EIGHTHS POINT YESTERDAY TO ONE HUNDRED AND ONE THIRTY SECOND TO YIELD FIVE POINT SEVEN THREE PERCENT COMPARED WITH FIVE POINT SIX FOUR PERCENT ON MONDAY BUT ANALYSTS SAID TRADERS AND INVESTORS NEED NOT WORRY THAT THE VACANCIES CREATED BY MR. MULLINS AND MR. ANGELL WOULD CAST DOUBT ABOUT THE FED'S INFLATION FIGHTING CREDENTIALS THEY OVERREACTED TO MULLINS LEAVING SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES A LOT OF PEOPLE FEEL THAT IF CLINTON NOMINATES SOMEBODY BY DEFINITION THEY ARE NOT GOING TO FIGHT INFLATION BUT WHEN THE ECONOMY IS MOVING AHEAD AND IS GROWING AT A FAIRLY STEADY RATE VIRTUALLY ALL ECONOMISTS WOULD AGREE TO RAISE RATES HE SAID INSTEAD ANALYSTS SAID THE MARKET SHOULD FOCUS MORE ON THE ECONOMIC NEWS MANY TRADERS AND INVESTORS HAVE BEEN BETTING THAT THE COLD WEATHER COUPLED WITH THE EARTHQUAKE IN SOUTHERN CALIFORNIA WOULD TEMPORARILY AFFECT ECONOMIC DATA CREATING THE APPEARANCE THAT THE ECONOMY HAD SLOWED AND DELAYING ANY FED TIGHTENING BUT YESTERDAY'S REPORT INDICATES THAT SUCH A DELAY MIGHTN'T BE AS LONG AS SOME HAD THOUGHT PEOPLE HAD BEEN SAYING THE FED IS GOING TO TIGHTEN BUT THAT IT'S GOING TO COME LATER SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT S. G. WARBURG QUOTE BUT THAT COMPLACENT VIEW ON THE FED HAS BEEN CALLED INTO QUESTION QUOTE HE SAID ALONG WITH THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORT THERE WERE ALSO SIGNS THAT CONSUMER SPENDING HELD UP BETTER THAN EXPECTED THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES AND RYAN INCORPORATED REPORTED CHAIN AND DEPARTMENT STORE SALES ROSE ONE PERCENT IN JANUARY FROM DECEMBER FROM WHAT WE'VE SEEN SO FAR IT LOOKS LIKE ACTIVITY WAS BETTER SUSTAINED THAN WE'D THOUGHT SAID ALAN LEVENSON A MONEY MARKET ECONOMIST AT U. B. S. SECURITIES TRADERS HAVE SEVERAL MORE SIGNIFICANT EVENTS TO CONTEND WITH THIS WEEK TODAY THE TREASURY DEPARTMENT IS SCHEDULED TO ANNOUNCE THE TERMS OF NEXT WEEK'S QUARTERLY REFUNDING AUCTIONS ECONOMISTS EXPECT THE TREASURY TO SELL FORTY BILLION DOLLARS WORTH OF SECURITIES INCLUDING SEVENTEEN BILLION DOLLARS OF THREE YEAR NOTES TWELVE BILLION DOLLARS OF TEN YEAR NOTES AND ELEVEN BILLION DOLLARS OF THIRTY YEAR BONDS THAT WOULD BE THE SAME AMOUNT OF THREE AND TEN YEAR NOTES AS IN NOVEMBER WHILE THE BOND OFFERING WOULD BE UNCHANGED FROM LAST AUGUST TRADERS ARE ALSO LOOKING AHEAD TO FRIDAY'S JANUARY EMPLOYMENT REPORT WALL STREET IS LOOKING FOR A RISE IN NONFARM PAYROLL EMPLOYMENT OF ABOUT TWO HUNDRED THOUSAND WHICH WOULD FOLLOW THE ONE HUNDRED EIGHTY THREE THOUSAND GAIN CHALKED UP IN DECEMBER THE REPUBLIC OF ICELAND MADE ITS DEBUT IN THE U. S. CORPORATE BOND MARKET YESTERDAY WITH A TWO HUNDRED MILLION DOLLAR YANKEE BOND OFFERING AND IT RECEIVED A WARM RECEPTION THE REPUBLIC OF PORTUGAL G. T. E. CORPORATION PROPERTY TRUST OF AMERICA ALUMINUM COMPANY OF AMERICA AND UNOCAL CORPORATION ALSO CAME TO MARKET WITH MORE THAN ONE POINT FIVE BILLION DOLLARS OF DEBT TRADING IN THE INVESTMENT GRADE AND JUNK BOND MARKETS WAS LIGHT WITH PRICES CHANGING LITTLE INVESTMENT GRADE TRADERS SPECULATED THAT UNCERTAINTY ABOUT THE FUTURE OF SHORT TERM INTEREST RATES MAY BE CURBING TRADING IN THE CORPORATE BOND MARKET A LOT OF ACCOUNTS ARE UNSURE ABOUT THE TREASURY MARKET ONE TRADER SAID HOWEVER ONE SYNDICATE OFFICIAL SAID THE LACK OF ACTIVITY IS TEMPORARY AND STEMS FROM THE RECENT FOCUS ON NEW ISSUES JUNK BOND OFFERINGS FROM A. C. F. INDUSTRIES INCORPORATED AND A. C. F. INDUSTRIES HOLDING CORPORATION CONTINUE TO STRUGGLE IN THE JUNK BOND MARKET MERRILL LYNCH IS LEAD MANAGING THE DEAL THAT WAS EXPECTED TO PRICE LATE LAST WEEK INVESTORS ARE REPORTEDLY HAGGLING OVER COVENANT CHANGES FOR THE BOND OFFERINGS FROM THE TWO COMPANIES CONTROLLED BY FINANCIER CARL ICAHN MEANWHILE INVESTORS FLOCKED TO ICELAND'S YANKEE OFFERING OF SIX POINT ONE TWO FIVE PERCENT COUPON TEN YEAR NOTES WHICH WERE PRICED AT NINETY EIGHT POINT EIGHT ONE TO YIELD SIX POINT TWO EIGHT SEVEN PERCENT THROUGH LEAD MANAGER J. P. MORGAN SECURITIES ICELAND WITH A POPULATION OF TWO HUNDRED SEVENTY THOUSAND MAY BE TINY BUT THE COUNTRY HAS A STRONG ECONOMY THAT IS VERY MUCH ON THE UPSWING SAID BOB HUGIN HEAD OF J. P. MORGAN'S FIXED INCOME SYNDICATE YANKEE BONDS ARE SECURITIES SOLD BY FOREIGN ISSUERS IN THE U. S. MUNICIPAL ISSUERS BROUGHT MORE THAN ONE BILLION DOLLARS OF DEBT TO THE MARKET DESPITE A PRICE SLIP THAT BOOSTED YIELDS THE DAY'S LARGEST ISSUE THE NEW YORK TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY'S SIX HUNDRED SIXTY POINT ONE MILLION DOLLAR GENERAL PURPOSE REVENUE BONDS CAME TO THE MARKET VIA A BEAR STEARNS GROUP FOLLOWING A REPRICING AT WHICH A FEW YIELDS WERE RAISED ONE POINT OH TO THREE POINT OH BASIS POINTS TO ATTRACT BUYERS YIELDS RANGE FROM TWO POINT FIVE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT TWO EIGHT PERCENT IN TWO THOUSAND TWENTY FOUR THE INITIAL YIELD SCALE WAS TWO POINT FIVE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT TWO FIVE PERCENT IN TWO THOUSAND TWENTY FOUR IN SECONDARY DEALINGS MUNIS SLUMPED WITH TREASURYS ON CONCERNS ABOUT THE STRENGTHENING ECONOMY AND CLOSED AS MUCH AS THREE QUARTERS POINT LOWER THIS WEEK'S PRICING CALENDAR INCLUDES AT LEAST TWO MORE BIG ISSUES SAN DIEGO'S FOUR HUNDRED THIRTY MILLION DOLLAR PENSION OBLIGATION BONDS ARE TO BE PRICED BY A MERRILL LYNCH GROUP AND THE NEW YORK STATE DORMITORY AUTHORITY'S TWO HUNDRED THIRTY MILLION DOLLAR REVENUE BONDS ARE TO BE PRICED BY A GOLDMAN SACHS GROUP MEANWHILE YESTERDAY NEW YORK CITY COMPTROLLER ALAN HEVESI SAID HE EXPECTS MAYOR RUDOLPH GIULIANI'S BUDGET TO BE EXTRAORDINARILY PAINFUL AS IT ATTEMPTS TO ATTACK AN ESTIMATED TWO POINT THREE BILLION DOLLAR DEFICIT THE BUDGET IS SLATED TO BE UNVEILED TODAY NEW YORK IS ONE OF THE NATION'S LARGEST ISSUERS OF MUNICIPAL DEBT MR. HEVESI SAID HE WANTS TO REDUCE THE CITY'S DEBT SERVICE COSTS WHICH HE SAYS IS EXCESSIVE NEW YORK CITY'S DEBT SERVICE IS APPROACHING TWENTY PERCENT OF THE BUDGET HE SAID QUOTE IT SHOULD BE TWELVE PERCENT OR THIRTEEN PERCENT QUOTE PRICES OF MORTGAGE BACKED SECURITIES SLIPPED BUT NOT AS MUCH AS TREASURYS ALLOWING YIELDS ON CURRENT COUPON SECURITIES TO NARROW TO THE TREASURY'S TEN YEAR NOTE GOOD BUYING HAS BEEN SEEN FOR SEVERAL SECTORS OF THE MORTGAGE MARKET ALTHOUGH FLOWS THIS SESSION WERE SAID TO BE LIGHT RISING INTEREST RATES ARE OFTEN VIEWED AS BULLISH FOR THE MARKET BECAUSE OF THE EFFECT THEY HAVE ON SLOWING PREPAYMENTS FREDDIE MAC GOLD SIX POINT FIVES ARE YIELDING SIX POINT FIVE THREE PERCENT ONLY SEVENTY NINE BASIS POINTS MORE THAN THE TREASURY'S TEN YEAR NOTE THE TEN YEAR NOTE IS A PRICING BENCHMARK FOR CURRENT COUPONS WHICH HAVE A SIMILAR AVERAGE LIFE AT THE CLOSE OF TRADING MONDAY THE YIELD SPREAD BETWEEN FREDDIE SIX POINT FIVES AND THE TEN YEAR NOTE WAS EIGHTY THREE BASIS POINTS GINNIE MAE SIX POINT FIVES FOR FEBRUARY DELIVERY WERE ENDING DOWN FOURTEEN THIRTY SECONDS AT NINETY NINE AND TWENTY EIGHT THIRTY SECONDS FREDDIE MAC GOLD SIX POINT FIVES WERE DOWN THIRTEEN THIRTY SECONDS AT NINETY NINE AND THIRTY ONE THIRTY SECONDS AND FANNIE MAE SIX POINT FIVES WERE DOWN THIRTEEN THIRTY SECONDS AT NINETY NINE AND TWENTY FIVE THIRTY SECONDS IN THE PRIMARY MARKET FANNIE MAE ANNOUNCED TWO REAL ESTATE MORTGAGE INVESTMENT CONDUITS TOTALING ONE POINT SIX TWO FIVE BILLION DOLLARS BACKED BY FIFTEEN YEAR SIX POINT FIVE PERCENT SECURITIES AND A TWO POINT TWO SEVEN FIVE BILLION DOLLAR TRUST OF STRIPPED MORTGAGE BACKED SECURITIES BACKED BY SEVEN PERCENT COLLATERAL ALSO THE AGENCY ANNOUNCED A ONE HUNDRED MILLION DOLLAR INCREASE OF A THIRTY YEAR SEVEN POINT FIVE PERCENT REMIC AND A TWENTY FIVE MILLION DOLLAR INCREASE TO A STRIPPED MORTGAGE BACKED TRUST BACKED BY FIFTEEN YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES FREDDIE MAC ANNOUNCED A ONE BILLION DOLLAR INCREASE TO AN ISSUE OF GOLD MODIFIABLE AND COMBINABLE SECURITIES THE SIZE OF THE ISSUE WHICH WAS BACKED BY THIRTY YEAR SEVEN POINT FIVE PERCENT SECURITIES WAS RAISED TO TWO POINT TWO FIVE BILLION DOLLARS FROM ONE POINT TWO FOUR FIVE BILLION DOLLARS THE LONDON INTERNATIONAL FINANCIAL FUTURES AND OPTIONS EXCHANGE SAID IT WILL LAUNCH A NEW FUTURES CONTRACT BASED ON THE F. T. S. E. MID TWO HUNDRED FIFTY EQUITY INDEX FEBRUARY TWENTY FIFTH THREE WEEKS AFTER A COMPETITOR LAUNCHES A SIMILAR CONTRACT ROGER BARTON THE EXCHANGE'S MANAGING DIRECTOR SAID THE NEW CONTRACT IS THE RESULT OF INTENSIVE RESEARCH AND DEMAND FROM LIFFE MEMBERS AND U. K. FUND MANAGERS LOOKING TO BROADEN THEIR USE OF DERIVATIVE PRODUCTS VOLUME ON THE F. T. S. E. ONE HUNDRED FUTURES CONTRACT ON LIFFE LAST YEAR TOTALED THREE MILLION ONE HUNDRED NINETEEN THOUSAND NINE HUNDRED SEVENTY ONE UP NINETEEN PERCENT FROM A YEAR EARLIER THE F. T. S. E. INDEX IS BRITAIN'S MOST WIDELY TRACKED MEASURE OF EQUITY PERFORMANCE MR. BARTON SAID THE RECENT PERFORMANCE OF THE F. T. S. E. TWO HUNDRED FIFTY INDEX DETERMINED THE APPROPRIATE TIMING FOR A LAUNCH IS NOW BUT LIFFE APPARENTLY HAS BEEN RUSHED INTO ANNOUNCING THE NEW CONTRACT BECAUSE OMLX THE LONDON SECURITIES AND DERIVATIVES EXCHANGE PLANS TO LAUNCH CONVENTIONAL AND FLEXIBLE FUTURES AND OPTIONS ON THE INDEX ON FRIDAY IN AN UNEXPECTED MOVE LAST NOVEMBER THE LONDON STOCK EXCHANGE AWARDED BOTH OMLX AND LIFFE LICENSES TO TRADE DERIVATIVES ON THE INDEX OF MEDIUM SIZED U. K. COMPANIES THE CHICKEN POX VACCINE MADE BY MERCK AND COMPANY WON'T PAY FOR ITSELF IN SAVINGS TO THE HEALTH CARE SYSTEM RESEARCHERS PREDICTED BUT IF COSTS SUCH AS PARENTS' LOST WORK DAYS ARE INCLUDED THE RESEARCHERS CLAIM THE DRUG WILL BENEFIT SOCIETY THE CHICKEN POX VACCINE VARIVAX IS UNDER FOOD AND DRUG ADMINISTRATION REVIEW AFTER AN F. D. A. PANEL LAST WEEK FOUND THE VACCINE SAFE AND EFFECTIVE SOME IMPORTANT MEDICAL QUESTIONS REMAIN UNRESOLVED HOWEVER SUCH AS WHETHER THE IMMUNITY WILL WANE OVER TIME ALLOWING THE DISEASE TO STRIKE IN ADULTHOOD WHEN IT IS MORE SERIOUS THE F. D. A. COMMITTEE RECOMMENDED THAT THE AGENCY LOOK INTO THESE ISSUES BEFORE MAKING ITS FINAL DECISION IF THE DRUG CLEARS THE REGULATORY HURDLE THE VACCINE WILL THEN CONFRONT THE LARGER QUESTION WILL THE MARKET ACCEPT IT THAT WILL IN PART DEPEND ON WHETHER PHYSICIANS AND HEALTH INSURERS DECIDE THAT THE DRUG'S BENEFITS ARE WORTH ITS COST IN A STUDY PUBLISHED IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION RESEARCHERS CONDUCTED A MATHEMATICAL ANALYSIS OF THE ECONOMIC CONSEQUENCES OF A CHICKEN POX VACCINATION PROGRAM THE STUDY INCLUDED COSTS ARISING FROM THE DISEASE INCLUDING MEDICATION HOSPITALIZATIONS EMERGENCY ROOM VISITS AND PHYSICIAN VISITS THOSE COSTS WERE THEN COMPARED WITH THE COST OF A VACCINATION PROGRAM ESTIMATED AT EIGHTY EIGHT MILLION DOLLARS ANNUALLY OR THIRTY FIVE DOLLARS A DOSE THE VACCINATION PROGRAM WOULD PREVENT THREE POINT SEVEN MILLION CHICKEN POX CASES NINE THOUSAND THREE HUNDRED HOSPITALIZATIONS AND FIFTY TWO DEATHS ANNUALLY THE RESEARCHERS PREDICTED THE PROGRAM HOWEVER WOULD COST EIGHT MILLION DOLLARS A YEAR MORE THAN IT WOULD SAVE IN DIRECT MEDICAL COSTS THE STUDY FOUND A CHICKEN POX VACCINATION PROGRAM WON'T SAVE HEALTH INSURERS MONEY SAID TRACY A. LIEU OF THE UNIVERSITY OF CALIFORNIA SAN FRANCISCO THE STUDY'S LEAD RESEARCHER MANY MEDICAL INTERVENTIONS COST MONEY BUT BECAUSE THEY ACHIEVE A BENEFIT THEY ARE JUDGED COST EFFECTIVE SHE SAID WHEN THE RESEARCHERS INCLUDED INDIRECT COSTS OF CHICKEN POX SUCH AS WORK DAYS LOST WHEN PARENTS STAY HOME TO CARE FOR SICK CHILDREN THE PROGRAM MOVED INTO THE BLACK PRODUCING SAVINGS TO SOCIETY OF THREE HUNDRED EIGHTY FOUR MILLION DOLLARS A YEAR SUCH AN ANALYSIS MIGHT APPEAL TO EMPLOYERS WHO ARE SENSITIVE TO THE COST OF ABSENTEEISM SAID MIRIAM JACOBSON OF THE WASHINGTON BUSINESS GROUP ON HEALTH BUT ALAN L. HILLMAN DIRECTOR OF THE CENTER FOR HEALTH POLICY AT THE UNIVERSITY OF PENNSYLVANIA SAID THE STUDY ASSUMES THE VACCINE WILL WORK IN MOST PEOPLE OVER THE LONG TERM WHICH HASN'T BEEN PROVEN IF THE VACCINE'S IMMUNITY WANES AND ADULTS DEVELOP CHICKEN POX THE MORE SERIOUS COMPLICATIONS CAN BE FAR MORE COSTLY HE SAID ANTHONY MASSO SENIOR VICE PRESIDENT OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA AN INDUSTRY GROUP SAID HEALTH INSURERS WOULD VIEW A CHICKEN POX VACCINATION PROGRAM AS BENEFICIAL FOR SOCIETY AND WOULD RECOMMEND THAT EMPLOYERS COVER PREVENTIVE SERVICES SUCH AS THE CHICKEN POX VACCINE HIGHER TAXES AND LOWER INVESTMENT YIELDS STRAINED FOURTH QUARTER RESULTS AT AMERICAN GENERAL CORPORATION THE INSURANCE AND FINANCIAL SERVICES COMPANY HAD A LOSS OF ONE HUNDRED SIXTY THREE POINT FIVE MILLION DOLLARS OR SEVENTY SIX CENTS A SHARE COMPARED WITH PROFIT OF ONE HUNDRED THIRTY THREE POINT SEVEN MILLION DOLLARS OR SIXTY TWO CENTS A SHARE FOR THE YEAR AGO QUARTER RESULTS INCLUDED A PREVIOUSLY ANNOUNCED THREE HUNDRED MILLION DOLLAR CHARGE TO WRITE DOWN ACQUISITION RELATED GOODWILL IN ITS LIFE INSURANCE DIVISION EARNINGS BEFORE THE CHARGE WERE ONE HUNDRED THIRTY SIX POINT FIVE MILLION DOLLARS OR SIXTY THREE CENTS A SHARE AT THE LOW END OF ANALYSTS' EXPECTATIONS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY AMERICAN GENERAL WAS DOWN THIRTY SEVEN POINT FIVE CENTS AT TWENTY EIGHT DOLLARS AND TWENTY FIVE CENTS FOR THE YEAR AMERICAN GENERAL EARNED TWO HUNDRED FOUR MILLION DOLLARS OR NINETY FOUR CENTS A SHARE AFTER ONE TIME CHARGES UP FROM FIVE HUNDRED THIRTY THREE MILLION DOLLARS OR TWO DOLLARS AND FORTY FIVE CENTS A SHARE A YEAR EARLIER ASSETS GREW ELEVEN PERCENT TO FORTY THREE POINT NINE EIGHT BILLION DOLLARS FROM THIRTY NINE POINT SEVEN FOUR BILLION DOLLARS AMERICAN GENERAL SAID PROFIT IN ITS LIFE INSURANCE DIVISION FELL NINE POINT NINE PERCENT SALES GAINS IN THE DIVISION WERE MORE THAN OFFSET BY LOWER INVESTMENT YIELDS AND A TWENTY ONE MILLION DOLLAR INCREASE IN INCOME TAX EXPENSE THAT RESULTED FROM THE LOSS OF SOME TAX BENEFITS EARNINGS ROSE TWENTY FIVE PERCENT IN THE RETIREMENT ANNUITIES DIVISION AND INCREASED TWENTY EIGHT PERCENT IN THE CONSUMER FINANCE DIVISION PRESIDENT JAMES R. TUERFF SAID THE COMPANY EXPECTS CONTINUED SALES GROWTH IN NINETEEN NINETY FOUR IN LIFE INSURANCE IN ADDITION AMERICAN GENERAL PLANS TO INCREASE ITS ANNUITIES SALES FORCE TO EIGHT HUNDRED FORTY REPRESENTATIVES FROM SEVEN HUNDRED FORTY THIS YEAR AND PROJECTS BETTER RETURNS IN CONSUMER FINANCE THROUGH NEW PRODUCTS AND A COMPUTERIZED ACCOUNTING SYSTEM MAPCO INCORPORATED SAID THERE WAS AN EXPLOSION AND FIRE AT ITS PIPELINE STATION NEAR IOWA CITY IOWA BUT THE COMPANY DIDN'T IMMEDIATELY KNOW THE EXTENT OF ANY DAMAGE NO ONE WAS INJURED IN THE BLAST WHICH OCCURED SHORTLY AFTER NINE A. M. E. S. T. YESTERDAY ACCORDING TO COMPANY SPOKESMAN RICK NEAL AN ASSOCIATED PRESS REPORT SAID WITNESSES HEARD FIVE EXPLOSIONS AND SAW FLAMES SHOOTING ONE HUNDRED FEET INTO THE AIR MAPCO'S MR. NEAL SAID TWO COMPANY PIPELINES DELIVER NATURAL GAS LIQUIDS TO THE SITE WHERE THE LIQUIDS ARE STORED IN TWO UNDERGROUND CAVERNS AND PIPED TO SITES IN IOWA AND WISCONSIN ONE CAVERN HOLDS TWO HUNDRED THOUSAND BARRELS OF AN ETHANE PROPANE MIXTURE THE OTHER HOLDS FOUR HUNDRED THOUSAND BARRELS OF PROPANE MR. NEAL SAID THE FIRE WAS UNDER CONTROL AND THAT HE BELIEVED THE FIRE WAS LIMITED TO AN ABOVE GROUND PUMP MR. NEAL DID NOT YET KNOW HOW OPERATIONS AT THE FACILITY MIGHT BE AFFECTED MEL LEVINE SPENT A DECADE IN CONGRESS AS ONE OF ISRAEL'S MOST AGGRESSIVE SUPPORTERS JAMES ZOGBY HAS FOUNDED FOUR GROUPS TO DEFEND ARAB AND ARAB AMERICAN RIGHTS THEY MET ONLY AS OPPONENTS JOUSTING ON C. N. N.'S CROSSFIRE OR AT CONGRESSIONAL HEARINGS WHERE MR. ZOGBY RECALLS THE CALIFORNIA DEMOCRAT QUOTE RAKED ME OVER THE COALS QUOTE NOW MESSRS LEVINE AND ZOGBY ARE CO PRESIDENTS OF BUILDERS FOR PEACE A PRIVATE GROUP TRYING TO GET ARAB AMERICAN AND U. S. JEWISH BUSINESS LEADERS TO INVEST IN THE ISRAELI OCCUPIED WEST BANK AND GAZA BACKED BY THE CLINTON ADMINISTRATION THE TWO MEN BELIEVE THAT BOLSTERING THE PRIVATE ECONOMY IS THE BEST WAY TO PROMOTE PEACE IN THE AREAS ISRAEL HAS AGREED TO TURN OVER TO PALESTINIAN RULE THE DUO RECENTLY TOOK A GROUP OF U. S. EXECUTIVES TO ISRAEL TO EXPLORE THE THEORY BUILDERS FOR PEACE IS A MICROCOSM OF THE COMPLEXITIES FACING ISRAELIS AND PALESTINIANS AS THEY TRY TO WORK OUT HOW TO LIVE TOGETHER PEACEFULLY IT IS AN IDEA FULL OF PROMISE AS EXEMPLIFIED BY THE WARM RELATIONS OF ITS TWO FOUNDERS BUT IT FACES MANY DAUNTING PROBLEMS NOT THE LEAST OF WHICH IS THE ACCUMULATED MISTRUST BUILT UP OVER THE DECADES OF TENSIONS IN THE MIDDLE EAST A PLACE WHERE THE PAST ALWAYS INTRUDES UPON THE PRESENT DESPITE THEIR PAST AND THE UPS AND DOWNS OF MIDEAST PEACE MESSRS LEVINE AND ZOGBY HAVE DEVELOPED AN EASY RAPPORT MR. ZOGBY THE FORTY EIGHT YEAR OLD PRESIDENT OF THE ARAB AMERICAN INSTITUTE A PRIVATE POLITICAL AND POLICY RESEARCH GROUP COMPLAINED RECENTLY THAT BECAUSE OF HIS WORK WITH MR. LEVINE HE WAS CALLED A COLLABORATOR BY THE ASSOCIATION OF ARAB AMERICAN UNIVERSITY GRADUATES YOU PEOPLE HAVE MORE ORGANIZATIONS THAN WE DO OBSERVES THE FIFTY YEAR OLD MR. LEVINE YEAH BUT THAT'S BECAUSE YOU PEOPLE PUT ALL YOUR GROUPS TOGETHER AND CALL IT A FEDERATION RETORTS THE CIGAR WIELDING MR. ZOGBY YET AFFABILITY ALONE CAN'T BRIDGE THE VAST CULTURAL GAP SEPARATING ARABS AND JEWS MUTUAL SUSPICIONS SURFACED IMMEDIATELY WHEN MESSRS LEVINE AND ZOGBY BROUGHT TOGETHER ARAB AND JEWISH AMERICANS FOR THE FIRST PLANNING SESSION OF BUILDERS FOR PEACE AND DURING THE GROUP'S TRIP TO ISRAEL PALESTINIAN BUSINESS LEADERS BITTERLY VENTED THE FRUSTRATIONS RESULTING FROM A QUARTER CENTURY OF OCCUPATION EVEN MESSRS LEVINE AND ZOGBY TWO MAINSTREAM LIBERAL DEMOCRATS WHO HOLD SIMILAR VIEWS ON VIRTUALLY EVERY OTHER POLICY SUBJECT DON'T SEE EYE TO EYE ON THE MOST VITAL ASPECTS OF ISRAELI PALESTINIAN PEACE MR. LEVINE STRONGLY OPPOSES AN INDEPENDENT PALESTINIAN STATE AS DO MOST ISRAELIS I WOULDN'T BE DOING THIS IF I WEREN'T CONVINCED IT WAS VERY MUCH IN ISRAEL'S INTEREST HE SAYS ON THE OTHER HAND MR. ZOGBY THINKS SUCH A STATE IS INEVITABLE NECESSARY AND DESIRABLE THE TWO MEN ALSO REACTED DIFFERENTLY IN ISRAEL WHEN THEY HEARD A NUMBER OF PALESTINIAN ENTREPRENEURS COMPLAIN ABOUT ROUGH TREATMENT FROM ISRAELI OFFICIALS BEING TAXED WITHOUT RECEIVING BENEFITS FROM THE OCCUPYING ISRAELI GOVERNMENT AND BEING BARRED FROM THE ISRAELI MARKET MESSRS LEVINE AND ZOGBY HAD VOWED TO STEER CLEAR OF POLITICS BUT MR. ZOGBY COULDN'T RESIST CITING THE OPPRESSION EVEN SUCCESSFUL PALESTINIANS ARE FORCED TO LIVE UNDER MR. LEVINE A LAWYER WHO DIVIDES HIS TIME BETWEEN WASHINGTON AND LOS ANGELES STICKS TO THE ISRAELI LINE HE TENDS TO PLAY DOWN THE UNEQUAL TREATMENT PALESTINIANS RECEIVE AND EMPHASIZE THAT ISRAEL PROVIDES SERVICES SUCH AS WATER AND ELECTRICITY TO THE TERRITORIES UNBURDENED BY THE EMOTIONS OF OCCUPATION MR. LEVINE'S MESSAGE IS TO STOP FOCUSING ON THE PAST AND CONCENTRATE ON BUSINESS OPPORTUNITIES IN THE FUTURE THAT'S THE GOAL OF BUILDERS FOR PEACE WHICH WAS BORN AMID THE EUPHORIA OF THE ISRAELI PALESTINIAN PEACE ACCORD SIGNED SEPTEMBER THIRTEENTH AT THE WHITE HOUSE THE IDEA EMERGED FROM A MEETING THAT DAY BETWEEN PRESIDENT CLINTON AND A GROUP OF ARAB AMERICAN AND U. S. JEWISH BUSINESS EXECUTIVES LATER VICE PRESIDENT AL GORE ASKED MR. LEVINE AN OLD FRIEND AND COLLEAGUE FROM THE HOUSE AND MR. ZOGBY A WHITE HOUSE ADVISER ON ARAB AMERICAN ISSUES TO HEAD THE PRIVATE OPERATION BUT THE EUPHORIA DIDN'T LAST LONG ABOUT SIX WEEKS LATER AT THE GROUP'S INITIAL DINNER AT WASHINGTON'S HAY ADAMS HOTEL IT LOOKED MOMENTARILY LIKE BUILDERS FOR PEACE WOULD COLLAPSE AS THE GROUP WAITED FOR MR. GORE WHO WAS AN HOUR LATE BOARD MEMBER NAJEEB HALABY THE FORMER PAN AMERICAN WORLD AIRWAYS CHIEF EXECUTIVE OFFICER AND THE FATHER OF JORDAN'S QUEEN BEGAN TALKING ABOUT THE QUOTE INTOLERABLE QUOTE CONDITIONS IN WHICH GAZANS AND WEST BANK PALESTINIANS LIVE ATTORNEY MAX KAMPELMAN ROSE TO DEFEND ISRAEL AND CHALLENGE THE CHARACTERIZATION IT WASN'T HORRIBLE OR AGGRESSIVE SAYS MR. ZOGBY BUT EVERYBODY WAS STAKING OUT HIS OWN GROUND MR. LEVINE REMEMBERS EXPERIENCING A FEELING OF RELIEF WHEN MR. GORE FINALLY ARRIVED WHEN POLITICS IS KEPT ASIDE SOME PROMISING OPPORTUNITIES EMERGE ON THE TRIP TO ISRAEL LAST MONTH FOR INSTANCE STEVEN GREEN CHAIRMAN OF ASTRUM CORPORATION A HOLDING COMPANY THAT OWNS SEVERAL LUGGAGE MANUFACTURERS INCLUDING SAMSONITE MET WITH A LUGGAGE MAKER IN GAZA THE GAZAN TOLD MR. GREEN THAT HIS COMPANY COULD MEET MR. GREEN'S COMPANY'S QUALITY STANDARDS AND MANUFACTURE ITS PRODUCTS IN THE MIDDLE EAST MR. GREEN WAS SO IMPRESSED WITH THE PRESENTATION HE SAYS THAT HE ASKED SAMSONITE'S PRESIDENT TO FLY TO THE REGION FOR FURTHER TALKS I THINK I SAW SOME IMPACT SAYS MR. GREEN A DIALOGUE WAS STARTED TODAY THAT ALLOWED PEOPLE TO EXPRESS BOTH THEIR CONCERNS AND THEIR OPTIMISM ABOUT WHAT THEY CAN DO WITH THEIR BUSINESSES BUILDERS FOR PEACE ALSO WILL NEED TO USE ITS CONNECTIONS WITH MR. GORE TO HELP REMOVE SOME BUREAUCRATIC ROADBLOCKS IN THE WAY OF BUSINESS OPPORTUNITIES LEO KRAMER AN AMERICAN CONSULTANT AND BUSINESSMAN SAYS THAT U. S. GOVERNMENT AGENCIES SUCH AS THE AGENCY FOR INTERNATIONAL DEVELOPMENT MOVE TOO SLOWLY AND AREN'T SUFFICIENTLY ACCUSTOMED TO WORKING WITH THE PRIVATE BUSINESS SECTOR TO BRING THE NEEDED QUICK PAYOFF TO THE OCCUPIED TERRITORIES WHERE THE UNEMPLOYMENT RATE IS ABOUT FORTY PERCENT GOVERNMENT AID IS NEEDED TO BUILD THE STRUCTURE IN WHICH PRIVATE BUSINESS CAN THRIVE THE GROUP'S SUCCESS ALSO WILL DEPEND HEAVILY ON THE PROGRESS OF THE PEACE TALKS BETWEEN ISRAEL AND PALESTINIANS AS WELL AS ISRAEL'S WILLINGNESS TO RELINQUISH CONTROL OVER THE DAILY LIVES OF PALESTINIANS MESSRS LEVINE AND ZOGBY SAY THEY HAVE A COMMITMENT FROM ISRAEL'S MINISTER OF INDUSTRY AND TRADE MICHA HARISH TO APPOINT A LIAISON TO WORK WITH BUILDERS FOR PEACE MEL AND I HAVE DIFFERENCES ABOUT THE PAST AND ABOUT THE FUTURE SAYS MR. ZOGBY BUT IN THE PRESENT WE HAVE A COMMON INTEREST IN HELPING CREATE STABILITY IN THE WEST BANK AND GAZA SOMETHING HAS GONE AWRY IN RURAL TEXAS' QUEST FOR ECONOMIC DEVELOPMENT IN HIDALGO FUNDS EARMARKED FOR THE CREATION OF NEW INDUSTRIAL JOBS WERE USED TO BUILD A STATUE OF A GIANT KILLER BEE IN CAMERON OFFICIALS ARE USING SIMILAR FUNDS TO KEEP THE LOCAL HOSPITAL AFLOAT AND IN KEMAH OFFICIALS APPROVED USING SUCH MONEY FOR THE PURCHASE AND STRINGING OF CHRISTMAS LIGHTS IN THE TOWN QUOTE IT'S KIND OF A CONSTANT BATTLE TO KEEP THIS MONEY RESERVED FOR WHAT IT WAS INTENDED FOR QUOTE SAYS SENATOR BILL RATLIFFE A REPUBLICAN FROM MOUNT PLEASANT THERE ARE GOING TO BE CASES WHERE PEOPLE DON'T USE IT WISELY IF ANYBODY KNOWS THE PURPOSE OF THIS MONEY IT'S MR. RATLIFFE IN NINETEEN EIGHTY NINE HE SPONSORED THE LEGISLATION THAT GAVE TEXAS' SMALLER CITIES THOSE IN COUNTIES WITH FEWER THAN FIVE HUNDRED THOUSAND PEOPLE THE OPPORTUNITY TO COLLECT UP TO A ONE HALF CENT SALES TAX PROVIDED THE PROCEEDS WERE USED FOR THE CREATION OF INDUSTRIAL JOBS THE LAW WAS AMENDED TWO YEARS LATER PERMITTING SOME LARGER CITIES TO COLLECT THE TAX AND USE IT FOR A BROADER RANGE OF PURPOSES ARLINGTON'S ONE HUNDRED NINETY MILLION DOLLARS STADIUM WAS PRIMARILY FINANCED BY THE TAX CURRENTLY ONE HUNDRED NINETEEN CITIES LEVY THE SALES TAX WHICH HAS GENERATED MORE THAN ONE HUNDRED FIFTY MILLION DOLLARS SINCE NINETEEN EIGHTY NINE AND LAST MONTH FIFTEEN NEW CITIES VOTED TO BEGIN COLLECTING THE TAX THE INCENTIVES HAVE BECOME A VERY BIG PART OF ECONOMIC DEVELOPMENT IN TERMS OF RECRUITING COMPANIES AND IN KEEPING THE ONES YOU HAVE SAYS MICHAEL BOURN EXECUTIVE DIRECTOR OF THE AMARILLO ECONOMIC DEVELOPMENT CORPORATION THE AGENCY THAT OVERSEES THE SPENDING OF THE SALES TAX THEY ARE PARTICULARLY NECESSARY TOOLS IN COMMUNITIES THAT ARE OUTSIDE THE MAJOR URBAN AREAS MR. BOURN SAYS THAT AMARILLO HAS SPENT ABOUT TWENTY MILLION DOLLARS TO SPONSOR TWENTY FOUR PROJECTS THAT ARE EXPECTED TO CREATE FOUR THOUSAND FOUR HUNDRED DIRECT AND INDIRECT JOBS BUT CONCERN THAT THE TAX IS BEING MISUSED HAS RAISED THE POSSIBILITY THAT THE LEGISLATURE WILL CRACK DOWN EITHER BY REQUIRING STATE APPROVAL FOR EXPENDITURES IMPOSING STRICTER GUIDELINES OR DOING AWAY WITH THE TAX ALTOGETHER IT CAN AND SHOULD BE A VALUABLE TOOL FOR THE ECONOMIC DEVELOPMENT OF TEXAS SAYS BILL R. SHELTON MANAGING DIRECTOR OF THE CORNERSTONE GROUP A FORT WORTH CONSULTING FIRM THAT HAS CONDUCTED SURVEYS ON CITIES' USE OF THE TAX THE ABUSES UNFORTUNATELY ARE NOT GOING UNNOTICED THOSE ABUSES CRITICS SAY COVER A WIDE RANGE SOME TOWNS THEY SAY SPEND MONEY ON PROJECTS THAT APPEAR TO BE CLEARLY OUTSIDE THE PURPOSE OF CREATING INDUSTRIAL JOBS BUYING CHRISTMAS LIGHTS FOR INSTANCE OR EXPANDING THE COUNTY COURTHOUSE BUT A BIGGER PROBLEM CRITICS CHARGE IS THAT MANY SMALL TOWNS DON'T HAVE THE EXPERTISE TO EVALUATE INVESTMENT OPTIONS AND END UP THROWING MONEY AWAY ON QUESTIONABLE PROJECTS THAT SOME SUGGEST IS WHAT HAPPENED IN COPPERAS COVE A CITY OF TWENTY FOUR THOUSAND NEAR KILLEEN THE PROBLEMS STARTED WHEN THE BOARD OF THE LOCAL ECONOMIC DEVELOPMENT CORPORATION GUARANTEED A FOURTEEN THOUSAND DOLLAR LOAN TO A LOCAL PHOTOGRAPHY STUDIO THE STUDIO OFFICIALS SAY WANTED TO HIRE ANOTHER EMPLOYEE AND PURCHASE NEW EQUIPMENT IN ORDER TO EXPAND INSTEAD THE COMPANY DEFAULTED ON THE LOAN AND LEFT TOWN WITH THE COLLATERAL BUT THAT'S NOT THE WORST OF IT THE BOARD LAST YEAR ALSO BACKED A LOAN FOR MORE THAN ONE MILLION DOLLARS FOR NO TOUCH INCORPORATED A START UP CONTAINER MANUFACTURING COMPANY SIX MONTHS LATER THE BOARD GUARANTEED ANOTHER THREE HUNDRED THOUSAND DOLLAR LOAN THIS ONE FROM THE LOCAL BANK AND IN ANTICIPATION OF THE SUPPORT OPERATIONS NO TOUCH WOULD NEED THE BOARD GUARANTEED A FORTY NINE THOUSAND DOLLAR LOAN FOR THE COVE TOOL AND DIE MANUFACTURING COMPANY A COPPERAS COVE FIRM BUT LATE LAST YEAR CITY OFFICIALS SAY NO TOUCH FILED FOR REORGANIZATION UNDER THE BANKRUPTCY LAWS COVE TOOL QUICKLY FOLLOWED AND NOW THE COPPERAS COVE ECONOMIC DEVELOPMENT CORPORATION IS REPAYING ALL THE DEBT THE EPISODE HAS ALL BUT DEPLETED THE CITY'S ECONOMIC DEVELOPMENT FUNDS AND PROMPTED CALLS TO REPEAL THE TAX AND DISBAND THE CORPORATION AFTER TWO YEARS OF COLLECTING AN ESTIMATED ONE POINT TWO MILLION DOLLARS IN TAX FUNDS THE CORPORATION IS LEFT WITH A BALANCE OF ABOUT THIRTY THREE THOUSAND FIVE HUNDRED DOLLARS AND IT STILL HAS TO PAY OFF MOST OF THE ONE MILLION DOLLAR LOAN TWO WEEKS AGO THE ECONOMIC DEVELOPMENT BOARD FIRED EXECUTIVE DIRECTOR AND FORMER CITY MAYOR JIM FRENCH QUOTE WE CREATED THE ECONOMIC DEVELOPMENT CORPORATION IN HOPES OF DIVERSIFYING OUR ECONOMY QUOTE SAYS TERESA CLEGHORN EDITOR OF THE COPPERAS COVE LEADER PRESS THE TOWN'S WEEKLY NEWSPAPER INSTEAD OF HAVING HUNDREDS OF NEW JOBS WE HAVE A LOT OF PEOPLE WHO ARE UNEMPLOYED BECAUSE THE COMPANIES THEY WERE WORKING FOR ARE IN BANKRUPTCY OTHER TOWNS HAVE BEEN CRITICIZED FOR PUTTING THE TAX MONEY INTO PROJECTS THAT ARE OUTSIDE THE LEGISLATION'S REQUIREMENTS WHETHER THE SPENDING IS ILLEGAL HASN'T BEEN TESTED BUT THERE'S NO QUESTION THAT SOME OF THE PROJECTS HAVE BEEN WELL ODD IN HIDALGO THE CITY SPENT NEARLY TWENTY THOUSAND DOLLARS IN NINETEEN NINETY TWO TO ERECT A FIBERGLASS AND STEEL STATUE OF THE KILLER BEE HIDALGO SAY CITY OFFICIALS WAS THE PLACE WHERE THE AFRICANIZED HONEY BEES FIRST CROSSED INTO THE U. S. IN NINETEEN NINETY THE BIG BEE WAS FUNDED WITH ECONOMIC DEVELOPMENT TAX FUNDS UNDER PROVISIONS THAT ALLOW SOME OF THE MONEY TO BE SPENT ON MARKETING AND PROMOTION HIDAGLO OFFICIALS CONCEDE THE BEE PROBABLY SEEMS SILLY TO OUTSIDERS BUT THEY MAKE NO APOLOGIES THE BEE THE CITY CLAIMS HAS GENERATED MUCH MORE THAN TWENTY THOUSAND DOLLARS WORTH OF NATIONAL PUBLICITY AND TOUR BUSES NOW STOP TO SEE THE BEE WE HAVE OVER TWENTY FIVE THOUSAND CARS THAT COME ACROSS THE INTERNATIONAL BRIDGE EVERY DAY GOING TO AND FROM MCALLEN BUT THEY JUST DRIVE THROUGH OUR TOWN SAYS JOE VERA PRESIDENT OF THE HIDALGO CHAMBER OF COMMERCE WE FEEL LIKE WE'VE DETOURED SOME OF THAT TRAFFIC IN THE EAST TEXAS CITY OF ATHENS ABOUT THREE MILLION DOLLARS IN SALES TAX FUNDS WERE USED TO WOO A FISH HATCHERY BUT WHAT MADE THIS DEAL UNUSUAL IS THAT IT IS A STATE OPERATED FISH HATCHERY OTHER CITIES SUCH AS ABILENE AND AMARILLO HAVE USED THE TAX FUNDS TO COURT STATE OPERATED PRISONS BUT THE FISH HATCHERY HAS PROMPTED THE MOST CRITICISM BECAUSE PRISONS AT LEAST CAN CREATE HUNDREDS OF JOBS THE FISH HATCHERY SCHEDULED FOR GROUNDBREAKING THIS MONTH SHOULD CREATE NINETEEN JOBS IT IS CERTAINLY ON THE MARGINS OF GOOD USE FOR IT SAYS SENATOR RATLIFFE WHO WHILE RELUCTANT TO CRITICIZE USE OF THE MONEY FOR PRISONS CONCEDES IT'S A LITTLE IRONIC THEY WOULD USE IT TO ATTRACT STATE PAYROLL ATHENS OFFICIALS ADMIT THREE MILLION DOLLARS FOR NINETEEN JOBS PROBABLY SOUNDS LIKE A BAD DEAL BUT THEY ARGUE THAT THE FISH HATCHERY WILL BOOST TOURISM ALTHOUGH CITY OFFICIALS SAY ATHENS NOW ATTRACTS ABOUT SIXTY THOUSAND TOURISTS A YEAR THEY CLAIM A STUDY FOUND THE FISH HATCHERY WOULD BOOST THAT NUMBER BY THREE HUNDRED THOUSAND TO FIVE HUNDRED THOUSAND PEOPLE THIS PART OF TEXAS IS WELL KNOWN FOR ITS BASS FISHING SAYS DON MANNING ATHENS CITY MANAGER WHO SAYS THAT THE CITY ALSO HAS USED ITS SALES TAX MONEY TO ATTRACT A MEDICAL SUPPLY COMPANY ONE OF THE MOST QUESTIONABLE USES OF THE TAX FUNDS IS IN CAMERON WHERE ALL OF THE CITY'S ESTIMATED THREE HUNDRED THIRTY NINE THOUSAND DOLLARS IN SALES TAX COLLECTIONS HAS GONE TOWARD PAYING OFF SIX HUNDRED THOUSAND DOLLARS IN OPERATING BONDS FOR CENTRAL TEXAS HOSPITAL TEXAS ATTORNEY GENERAL DAN MORALES HAS ISSUED AN OPINION STATING THAT THE TAX MONEY CAN NOT BE USED TO SUPPORT HOSPITALS BUT THE PRACTICE CONTINUES QUOTE THEY JUSTIFIED IT BY SAYING THAT IF THERE WASN'T A HOSPITAL THAT INDUSTRY WOULDN'T STAY OR WOULDN'T COME INTO CAMERON QUOTE SAYS JANET SHEGUIT TAX ASSESSOR COLLECTOR ONE OTHER CONCERN ABOUT THE WAY THE TAX HAS WORKED OUT TEXAS TOWNS AREN'T ONLY COMPETING WITH OTHER STATES FOR NEW JOBS THEY'RE COMPETING WITH EACH OTHER THE CITY OF ALLEN FOR INSTANCE SCORED BIG WHEN IT CONVINCED T. R. W. INFORMATION SYSTEMS A UNIT OF T. R. W. INCORPORATED CLEVELAND TO CONSOLIDATE OFFICES PREVIOUSLY LOCATED IN RICHARDSON DALLAS AND ANAHEIM CALIFORNIA IN ALLEN BRINGING WITH IT ONE THOUSAND JOBS BUT ALLEN'S SUCCESS CAME AT THE EXPENSE OF DALLAS AND RICHARDSON NEITHER OF WHICH ARE ELIGIBLE TO COLLECT THE TAX IN SOME WAYS IT GIVES US A MUCH GREATER ADVANTAGE OVER CITIES THAT DON'T HAVE THE TAX SAYS DAVID PITSTICK DIRECTOR OF THE ALLEN ECONOMIC DEVELOPMENT CORPORATION BUT IF WE DIDN'T HAVE IT COULD WE COMPETE WITH BIGGER CITIES NO WAY DESPITE ALL THE PROBLEMS SENATOR RATLIFFE IS HESITANT TO CALL FOR CHANGES IN THE LAW THE BOTTOM LINE HE SAYS IS THAT ELECTED CITY OFFICIALS DECIDE HOW TO SPEND THE MONEY EITHER BY THEMSELVES OR THROUGH THEIR APPOINTED REPRESENTATIVE I ASSUME THESE PLACES HAVE VOTERS SENATOR RATLIFFE SAYS AND IF THEY THINK THIS MONEY IS NOT BEING SPENT THE WAY IT OUGHT TO BE SOMEBODY OUGHT TO BE CALLED TO ANSWER FOR IT BUT AS A RESULT OF THE CONCERNS STATE ECONOMIC DEVELOPMENT OFFICIALS ARE WORKING WITH CITIES TO CLARIFY THE DOS AND DON'TS THE TEXAS INDUSTRIAL DEVELOPMENT COUNCIL INCORPORATED WHOSE MEMBERS INCLUDE ECONOMIC DEVELOPMENT CORPORATIONS AND CHAMBERS OF COMMERCE IS CREATING A SPECIAL NEWSLETTER JUST FOR THOSE CITIES THAT COLLECT THE TAX TWO INFORMATION MEETINGS IN PLANO AND SAN ANTONIO ALSO ARE SCHEDULED IN THE COMING MONTHS AND THE GROUP IS SOLICITING INPUT FROM MEMBERS TO DETERMINE WHETHER TO LOBBY FOR CHANGES IN THE LAW DURING THE NEXT LEGISLATIVE SESSION THE TAX QUOTE IS BEGINNING TO BE JUST ANOTHER REVENUE SOURCE FOR THE CITY IT'S NOT BEING USED TO CREATE NEW JOBS QUOTE SAYS JOE NEWMAN EXECUTIVE DIRECTOR OF THE INDUSTRIAL DEVELOPMENT COUNCIL WE'RE VERY CONCERNED THAT IT'S GOING TO DILUTE THE ORIGINAL PURPOSE OF THE BILL QUITE A BIT ALLEGED CASES OF QUOTE VITAMIN ABUSE QUOTE ARE EXTREMELY RARE BUT HAVE BEEN TRUMPETED ABOUT RECENTLY BY THE F. D. A. AS IT SEEKS TO RESTRICT OUR ACCESS TO VITAMINS AND FOOD SUPPLEMENTS PLEASE DON'T ALLOW YOURSELVES TO BECOME AN UNWITTING PAWN IN THE F. D. A.'S DANGEROUS POWER GRAB THE LIVES AND WELL BEING OF MILLIONS OF US ARE AT STAKE YOU POINTED OUT THE WIDESPREAD PAINKILLER ABUSE GOING ON IN AMERICAN OFFICES I AM SHOCKED TO SEE BOTTLES OF TYLENOL ON MANY EXECUTIVES' DESKS WHERE THEY YIELD FREQUENT DOSES THERE IS SOMETHING VERY WRONG WITH THIS SITUATION AND YOUR REPORTER HIT IT RIGHT BUT PLEASE DON'T CONFUSE VITAMINS WITH PAINKILLERS ONE IS A FOOD THE OTHER A DRUG NU WEST INDUSTRIES INCORPORATED ENGLEWOOD COLORADO THE COMPANY SAID ITS CHAIRMAN E. THEODORE STOLBERG WILL LEAVE HIS POST WHEN HIS TERM EXPIRES FEBRUARY TWENTY FOURTH THE MAKER OF PHOSPHATE FERTILIZER PRODUCTS SAID CRAIG HARLEN THE COMPANY'S CHIEF EXECUTIVE OFFICER AND PRESIDENT IS EXPECTED TO SUCCEED MR. STOLBERG AS CHAIRMAN MR. HARLEN IS FORTY FOUR YEARS OLD PETER B. PFISTER WAS NAMED TO SUCCEED MR. STOLBERG AS A DIRECTOR MR. PFISTER THIRTY FOUR IS A PARTNER IN WEISS PECK AND GREER AN INVESTMENT FIRM THAT OWNS A MAJORITY STAKE IN NU WEST IN AN INTERVIEW MR. STOLBERG WHO IS FORTY FOUR AND HAS BEEN CHAIRMAN OF NU WEST SINCE THE COMPANY WAS FOUNDED IN NINETEEN EIGHTY SEVEN SAID HE IS LEAVING TO DEVOTE MORE TIME TO STOLBERG PARTNERS A NEW YORK INVESTMENT FIRM THAT HE STARTED IN MARCH ALLSTATE CORPORATION SAID IT EXPECTS TO PAY THREE HUNDRED FIFTY MILLION DOLLARS IN CLAIMS ON THE LOS ANGELES EARTHQUAKE SUGGESTING THE INSURANCE INDUSTRY MIGHT END UP PAYING MORE IN CLAIMS THAN THE TWO BILLION DOLLARS CURRENTLY ESTIMATED MOST OF ALLSTATE'S LOSSES STEM FROM HOMEOWNERS INSURANCE THE COMPANY HAS ABOUT FIFTEEN POINT SIX PERCENT OF THE CALIFORNIA MARKET FOR HOMEOWNERS COVERAGE SUGGESTING INDUSTRYWIDE HOMEOWNER CLAIMS OF ABOUT TWO POINT TWO BILLION DOLLARS BUT THAT WOULD ONLY BE PART OF THE TOTAL COST THE INDUSTRY MUST ALSO PAY CLAIMS FOR DAMAGE TO COMMERCIAL PROPERTIES AND FOR INCOME LOST BY POLICYHOLDERS WITH BUSINESS INTERRUPTION COVERAGE ALLSTATE THE SECOND LARGEST HOMEOWNER INSURANCE COMPANY AFTER STATE FARM MUTUAL LIFE INSURANCE COMPANY IS THE FIRST MAJOR HOMEOWNERS INSURER TO REPORT ITS CLAIMS COST ON THE EARTHQUAKE BY COMPARISON ALLSTATE PAID TWO POINT SEVEN BILLION DOLLARS IN CLAIMS ON HURRICANE ANDREW IN NINETEEN NINETY TWO ALTHOUGH THE SEARS ROEBUCK AND COMPANY UNIT DIDN'T SAY HOW MUCH ITS NET FINANCIAL LOSS WILL BE ON THE EARTHQUAKE THE LOSS FIGURE ISN'T EXPECTED TO DIFFER WIDELY FROM THE CLAIMS AMOUNT BECAUSE ALLSTATE HAS LITTLE REINSURANCE FOR ITS HOMEOWNERS COVERAGE REINSURANCE ALLOWS INSURANCE COMPANIES TO TRANSFER RISK AMONG EACH OTHER QUOTE VIRTUALLY NO REINSURANCE APPLIES HERE QUOTE SAID AN ALLSTATE SPOKESWOMAN THE COMPANY SAID IT RECEIVED MORE THAN TWENTY FIVE THOUSAND CLAIMS INCLUDING BOTH AUTO AND PROPERTY SEPARATELY TRAVELERS INCORPORATED SAID IT DOESN'T EXPECT ITS NET COSTS ON THE EARTHQUAKE AFTER TAXES AND REINSURANCE WILL BE MORE THAN FIFTEEN MILLION DOLLARS TRAVELERS RECEIVED FEWER THAN ONE HUNDRED FIFTY CLAIMS MOTOROLA INCORPORATED SAID ITS BOARD APPROVED A TWO FOR ONE STOCK SPLIT AND INCREASED THE ELECTRONICS COMPANY'S QUARTERLY DIVIDEND BY TWENTY SEVEN PERCENT THE BOARD'S MOVES REFLECT MOTOROLA'S CONTINUED STRONG SHOWING IN NINETEEN NINETY THREE LAST MONTH THE COMPANY REPORTED AN EIGHTY EIGHT PERCENT SURGE IN FOURTH QUARTER PROFIT AND SAID IT MORE THAN DOUBLED ITS NINETEEN NINETY TWO RESULTS FOR THE YEAR THE STOCK SPLIT WILL BE IN THE FORM OF A STOCK DIVIDEND PAYABLE APRIL EIGHTEENTH TO HOLDERS OF THE COMPANY'S SHARES ON MARCH FIFTEENTH THE INCREASED QUARTERLY DIVIDEND WHICH RISES TO FOURTEEN CENTS FROM ELEVEN CENTS IS EFFECTIVE ON A PRE SPLIT BASIS WITH THE SAME PAY AND RECORD DATES MOTOROLA LAST SPLIT ITS STOCK AND INCREASED ITS DIVIDEND IN NINETEEN NINETY TWO CHEVRON CORPORATION'S TORTURED HISTORY OF OFFSHORE OPERATIONS NEAR HERE SUFFERED YET ANOTHER BLOW YESTERDAY WHEN BUREAUCRATIC INDECISION COMBINED WITH THE AFTEREFFECTS OF THE NORTHRIDGE EARTHQUAKE MADE IT LIKELY THAT PRODUCTION WILL HAVE TO BE CUT TO ABOUT ONE FIFTH OF CAPACITY AFTER HUGE INVESTMENTS AND MORE THAN A DECADE OF CONTROVERSY OVER THE POINT ARGUELLO FIELD THE LARGEST DOMESTIC OIL DISCOVERY SINCE THE LATE NINETEEN SIXTIES CHEVRON FAILED TO MEET A FEBRUARY FIRST DEADLINE FOR A FIRM AGREEMENT TO BUILD A NEW PIPELINE TO CARRY CRUDE SOUTH TO LOS ANGELES REFINERIES CHEVRON AND REGULATORS PREVIOUSLY AGREED THAT WITHOUT SUCH AN ACCORD AND WITHOUT THE NECESSARY CONSTRUCTION PERMITS NO MORE TANKERS WOULD BE USED TO SHIP OIL FROM THE FIELD BUT NOBODY FACTORED IN LAST MONTH'S EARTHQUAKE THE DAMAGE HAS TEMPORARILY SHUT DOWN ONE OF THE PIPELINES SERVING POINT ARGUELLO A SECOND LINE HAS TEMPORARILY REDUCED THE AMOUNT OF OIL IT IS CARRYING STATE AND COUNTY OFFICIALS HAVE PUT OFF CHEVRON'S REQUEST TO CONTINUE USING TANKERS ON AN EMERGENCY BASIS SO CHEVRON IS STORING LARGE AMOUNTS OF CRUDE IN TEMPORARY TANKS BUT BY NEXT WEEK UNLESS THE IMPASSE IS BROKEN PRODUCTION IS LIKELY TO PLUMMET TO ABOUT TWENTY THOUSAND BARRELS A DAY IN A FIELD WHOSE MAXIMUM IS CLOSE TO ONE HUNDRED THOUSAND BARRELS A DAY AND COMPANY OFFICIALS ARE FUMING CHAIRMAN KENNETH DERR WHO HAS ARGUED THAT ENVIRONMENTAL CONTROLS ON THE INDUSTRY ARE EXCESSIVE AND A QUOTE NATIONAL DISGRACE QUOTE CITES POINT ARGUELLO AS SPURRING CHEVRON'S INCREASING FOCUS OVERSEAS GENESCO INCORPORATED HURT BY SLUGGISH SALES OF CLOTHING AND FOOTWEAR SAID IT WILL TAKE A THIRTY EIGHT MILLION DOLLAR FOURTH QUARTER CHARGE FOR A RESTRUCTURING THAT WILL INCLUDE ELIMINATING ONE THOUSAND FOUR HUNDRED JOBS OR TWENTY PERCENT OF THE COMPANY'S WORK FORCE THE CLOTHING AND FOOTWEAR MANUFACTURER AND RETAILER SAID THE RESTRUCTURING WOULD REDUCE MANUFACTURING CAPACITY CORPORATE OVERHEAD AND OPERATING EXPENSES AS PART OF THE RESTRUCTURING GENESCO SAID IT WILL CLOSE ABOUT SIXTY OF ITS FIVE HUNDRED THIRTY RETAIL SHOE STORES A SPOKESWOMAN SAID THE COMPANY HASN'T YET DECIDED WHICH OF ITS FOURTEEN PLANTS WILL BE AFFECTED GENESCO HAS THREE FOOTWEAR CHAINS JARMAN JOHNSTON AND MURPHY AND JOURNEYS THE JOURNEYS CHAIN WHICH SELLS SHOES TO THE TEENAGE MARKET HAS BEEN THE WEAKEST PERFORMER BUT THE COMPANY HASN'T YET DETERMINED WHICH STORES WOULD BE CLOSED THE SPOKESWOMAN SAID SOME OF ITS FOOTWEAR BRANDS SUCH AS LAREDO WESTERN BOOTS HAVE SOLD WELL IN WESTERN WEAR SHOPS BUT OTHERS SUCH AS CODE WEST A FASHION BOOT SOLD IN DEPARTMENT STORES HAD WEAKER SALES IN APPAREL GENESCO BLAMES THE MOVE TOWARD MORE CASUAL DRESS AT THE WORKPLACE FOR WEAKER SALES OF TAILORED CLOTHING IN THE YEAR EARLIER PERIOD ENDED JANUARY THIRTY FIRST NINETEEN NINETY THREE NET INCOME WAS THREE POINT SIX MILLION DOLLARS OR FIFTEEN CENTS A SHARE THE QUARTER INCLUDED A CHARGE OF FIVE HUNDRED EIGHTY THREE THOUSAND DOLLARS OR TWO CENTS A SHARE FROM EARLY RETIREMENT OF DEBT GENESCO SAID IT REVISED ITS CREDIT AGREEMENTS WITH ITS BANKS PROVIDING AS MUCH AS ONE HUNDRED MILLION DOLLARS TO THE COMPANY HEALTHIER FINANCES IN MANY STATES AND CITIES EASE PRESSURES TO RAISE TAXES QUOTE FOR THE FIRST TIME IN RECENT MEMORY NO REGION IS IN DECLINE AND EVEN THE MORE TROUBLED ECONOMIES OF CALIFORNIA AND THE NORTHEAST SEEM TO HAVE BOTTOMED OUT QUOTE SAYS A REPORT BY MOODY'S INVESTORS SERVICE INCORPORATED MANY STATE AND LOCAL GOVERNMENTS BENEFIT FROM STRONGER ECONOMIC GROWTH HIGHER TAX REVENUE AND SHARPLY LOWER BORROWING COSTS SAYS DANIEL HEIMOWITZ MOODY'S EXECUTIVE VICE PRESIDENT BUT WARNING FLAGS STILL FLY IN SOME PLACES MOODY'S REMAINS CONCERNED ABOUT CALIFORNIA ESPECIALLY IN THE AFTERMATH OF THE EARTHQUAKE THE ECONOMIC SLUMP IN THE LOS ANGELES AREA HAS BEEN DEEPER AND MORE PROLONGED THAN ANY SINCE WORLD WAR TWO THE REPORT SAYS SCHOOL FINANCE REFORM IN MICHIGAN HAS CREATED GREAT UNCERTAINTY FOR SCHOOLS AND CITIES THERE BUT A PRICE WATERHOUSE REPORT SAYS THAT WITH ELECTIONS COMING UP NINETEEN NINETY FOUR WILL NOT BE A BIG YEAR FOR TAX INCREASES FOR A MAJORITY OF STATES MORE STATES SUCH AS OHIO AND MINNESOTA MAY EVEN CONSIDER TAX CUTS SAYS DOUG LINDHOLM OF PRICE WATERHOUSE SOME HOMEOWNERS WHO REFINANCED MAY BE OVERLOOKING A VALUABLE DEDUCTION MANY PEOPLE TOOK ADVANTAGE OF LOW INTEREST RATES LAST YEAR TO REFINANCE THEIR MORTGAGE FOR A SECOND OR THIRD TIME SOME OF THOSE PEOPLE NOW MAY BE ABLE TO DEDUCT MORE OF THE POINTS THEY PAID ON THE EARLIER REFINANCING THAN THEY REALIZE SAYS LARRY AXELROD A PARTNER AT DELOITTE AND TOUCHE POINTS ARE A FORM OF PREPAID INTEREST THAT LENDERS TYPICALLY CHARGE AS AN UPFRONT FEE POINTS PAID ON A REFINANCING GENERALLY ARE DEDUCTED OVER THE LIFE OF THE LOAN SUPPOSE SOMEONE WHO REFINANCED IN NINETEEN NINETY TWO AND PAID POINTS DID SO AGAIN IN NINETEEN NINETY THREE FROM A DIFFERENT LENDER PAYING POINTS AGAIN POINTS PAID ON THE NINETEEN NINETY THREE REFINANCING SHOULD BE DEDUCTED OVER THE LIFE OF THE NEW LOAN BUT POINTS FROM THE EARLIER REFINANCING THAT HAVEN'T YET BEEN DEDUCTED MAY BE DEDUCTED IN FULL FOR NINETEEN NINETY THREE MR. AXELROD SAYS FEWER TAX BATTLES CLOG THE COURTS BUT THE STAKES ARE HIGHER THESE TRENDS EMERGE FROM A REPORT TO BE PRESENTED TODAY BY DAVID L. JORDAN THE I. R. S.'S ACTING CHIEF COUNSEL TO NEW MEMBERS OF THE I. R. S. COMMISSIONER'S ADVISORY GROUP AS OF SEPTEMBER THIRTIETH THE TAX COURT FACED A BACKLOG OF FORTY TWO THOUSAND SEVENTY FOUR CASES DOWN FROM FIFTY FOUR THOUSAND ONE HUNDRED THIRTY FIVE THREE YEARS EARLIER BUT THE AMOUNT OF MONEY AT STAKE ROSE TO THIRTY SIX BILLION DOLLARS AS OF SEPTEMBER THIRTIETH FROM THIRTY THREE POINT FOUR BILLION DOLLARS THREE YEARS EARLIER MR. JORDAN SAYS AN ADDITIONAL THREE POINT ONE BILLION DOLLARS WAS AT STAKE IN OTHER COURTS AS OF SEPTEMBER THIRTIETH UP FROM TWO BILLION DOLLARS IN NINETEEN NINETY WE'RE GETTING FEWER CASES BUT THE CASES WE'RE GETTING ARE MUCH LARGER SAYS MR. JORDAN AS OF SEPTEMBER THIRTIETH THERE WERE TWO EIGHTY SIX TAX COURT CASES THAT EACH INVOLVED MORE THAN TEN MILLION DOLLARS OF THOSE ONE HUNDRED EIGHTY INVOLVED CORPORATE INCOME TAX ISSUES SIXTY FOUR DEALT WITH INDIVIDUAL INCOME TAX ISSUES AND THE OTHER FORTY TWO WERE ON ESTATE AND GIFT TAX ISSUES THE CORPORATE CASES INVOLVED TWENTY ONE POINT ONE BILLION DOLLARS THE INDIVIDUAL INCOME TAX CASES INVOLVED TWO POINT ONE BILLION DOLLARS AND THE ESTATE AND GIFT TAX CASES TWO POINT FOUR BILLION DOLLARS LESS THAN ONE PERCENT OF ALL TAX COURT CASES ACCOUNTED FOR MORE THAN SEVENTY PERCENT OF THE DOLLARS AT STAKE IN ALL CASES A. T. LAST AN ADMINISTRATION OFFICIAL SAYS QUOTE WE ARE VERY CLOSE QUOTE TO ANNOUNCING A NOMINEE FOR THE JOB OF I. R. S. CHIEF COUNSEL THE POSITION HAS BEEN VACANT FOR ABOUT A YEAR EARTHQUAKE VICTIMS IN CALIFORNIA GET A NEW BREAK THEY WON'T OWE PENALTIES ON RETURNS OR TAXES DUE BETWEEN JANUARY FIFTEENTH AND FEBRUARY TWENTY EIGHTH IF THE RETURN OR TAX PAYMENT IS POSTMARKED BY FEBRUARY TWENTY EIGHTH BUT THE I. R. S. SAYS PAYMENT OF INTEREST IS REQUIRED BY LAW TAX REFUND FRAUD WILL BE STUDIED AT A FEBRUARY TENTH HEARING OF A HOUSE WAYS AND MEANS SUBCOMMITTEE CHAIRED BY REPRESENTATIVE PICKLE D. TEXAS THE HEARING WILL FOCUS ESPECIALLY ON THE GROWING PROBLEM OF FRAUD STEMMING FROM ELECTRONICALLY FILED RETURNS NEW BUSINESSES IN NEW YORK CITY FACE TOUGH ODDS A CITY REPORT SHOWS ON AVERAGE NEARLY TWENTY FIVE PERCENT OF THEM ARE NO LONGER ON THE TAX ROLLS AFTER A YEAR AND MORE THAN FIFTY PERCENT ARE OUT OF BUSINESS OR NO LONGER DOING BUSINESS IN THE CITY AFTER FIVE YEARS IMPORTANT I. R. S. DATA IS UNAVAILABLE OR UNRELIABLE A CONGRESSIONAL AGENCY SAYS FOR EXAMPLE THE I. R. S. CAN'T EVEN PROVIDE DETAILED INFORMATION ON HOW MUCH IT COLLECTS IN EXCISE AND SOCIAL SECURITY TAXES ACCORDING TO A GENERAL ACCOUNTING OFFICE REPORT THAT IS BECAUSE PAYMENT INFORMATION FOR SOME TYPES OF TAXES IS LUMPED TOGETHER THE WATCHDOG AGENCY SAYS SOCIAL SECURITY AND INDIVIDUAL INCOME TAXES WITHHELD FROM EMPLOYEES ARE COMBINED INTO A SINGLE CATEGORY AS ARE ABOUT FIFTY DIFFERENT EXCISE TAXES THE REPORT SAYS THE G. A. O. SAYS EXCISE TAXES THAT SHOULD BE DISTRIBUTED TO VARIOUS GOVERNMENT TRUST FUNDS BASED ON ACTUAL I. R. S. COLLECTIONS ARE INSTEAD DISTRIBUTED ON THE BASIS OF TAX ASSESSMENTS NATURALLY ASSESSMENTS EXCEED COLLECTIONS THUS SLOPPY I. R. S. BOOKKEEPING EFFECTIVELY RESULTS IN SUBSIDIES FROM THE GENERAL REVENUE FUND TO TRUST FUNDS THE G. A. O. SAYS THE I. R. S. AGREES WITH SOME RECOMMENDATIONS BUT SAYS MANY REQUIRE COORDINATION WITH OTHER AGENCIES OR LEGISLATIVE CHANGES BRIEFS HOW'S THAT AN I. R. S. LAWYER DESCRIBES THE I. R. S.'S EFFORTS TO MOVE INTO THE ELECTRONIC AGE AS ELECTRONICIZATION A BOOKLET BY TAX LAWYER CONRAD TEITELL ON ESTATE PLANNING AND GIFTS IS TITLED GOD'S WILL IS NOT SUBJECT TO PROBATE BUT YOURS IS IN AN OPINION FOR A UNANIMOUS COURT CHIEF JUSTICE WILLIAM REHNQUIST LAST WEEK HELD IN NOW V. SCHEIDLER THAT THE SANCTIONS OF THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT KNOWN AS RICO CAN BE APPLIED AGAINST ANTIABORTION PROTESTERS IN SCHEIDLER THE NATIONAL ORGANIZATION FOR WOMEN AND ABORTION CLINICS SUED THE PRO LIFE ACTION NETWORK AND SEVERAL INDIVIDUALS ALLEGING THAT PRO LIFE DEMONSTRATORS HAD VIOLATED FEDERAL AND STATE LAW IN THEIR ATTEMPTS TO CLOSE DOWN THE CLINICS THE RICO CLAIM ALLEGED THAT THE DEFENDANTS COMMITTED TWO OR MORE ACTS OF INTERSTATE EXTORTION BY USING QUOTE FORCE VIOLENCE OR FEAR QUOTE TO INDUCE THE CLINICS TO GIVE UP THEIR RIGHT TO OPERATE THE DEFENDANTS ARGUED THAT RICO SHOULD NOT APPLY TO AN ESSENTIALLY POLITICAL STRUGGLE BUT SHOULD BE LIMITED TO CRIMES WITH A PROFIT GENERATING MOTIVE THE COURT HELD HOWEVER THAT THERE IS NO RICO REQUIREMENT OF ECONOMIC MOTIVE AS A MATTER OF SIMPLE STATUTORY INTERPRETATION THE OPINION WAS OVERLY BROAD THE COURT HAD PREVIOUSLY HELD IN NINETEEN SIXTY ONE AND NINETEEN SIXTY FIVE THAT THE SHERMAN ANTITRUST ACT DOES NOT APPLY TO EFFORTS TO CHANGE LAW EVEN IF DONE BY CONSPIRACY AND WITH AN ANTICOMPETITIVE MOTIVE A SIMILAR APPROACH SHOULD HAVE BEEN USED TO LIMIT RICO IN THIS CASE BUT THE MOST SERIOUS FAILURE IN THE OPINION WAS THE JUSTICES' INABILITY TO APPRECIATE THE POSITIVE ROLE THAT ILLEGAL BUT ESSENTIALLY PEACEFUL PROTEST HAS PLAYED IN AMERICAN HISTORY IMPLICIT IN THE LEAD OPINION BUT MADE QUITE EXPLICIT IN THE CONCURRENCE BY JUSTICES DAVID SOUTER AND ANTHONY KENNEDY IS THE VIEW THAT SOCIAL PROTEST CAN BE DIVIDED INTO TWO TYPES THAT PROTECTED BY THE FIRST AMENDMENT WHICH CANNOT BE MADE ILLEGAL AT ALL AND THAT NOT PROTECTED BY THE FIRST AMENDMENT WHICH CAN BE PUNISHED QUITE SEVERELY A MOMENT'S REFLECTION SHOWS THAT IN FACT SOCIAL PROTEST HAS NEVER LIMITED ITSELF TO LEGAL FORMS IN THE EARLY TWENTIETH CENTURY LABOR UNIONS OCCUPIED FACTORIES AND REFUSED TO MOVE AT AROUND THE SAME TIME WOMEN'S RIGHTS ADVOCATES CHAINED THEMSELVES TO FENCES AT THE WHITE HOUSE LATER CIVIL RIGHTS AND STUDENT PROTESTERS ROUTINELY INVADED BUSINESS AND SCHOOL PREMISES IN MASSIVE SIT INS AND TODAY A WIDE VARIETY OF PROTESTERS ROUTINELY CLIMB FENCES AND BREAK DOWN DOORS TO TRY TO STOP POWER PLANTS INCINERATORS AND SO FORTH NONE OF THESE ACTIVITIES HAVE EVER BEEN PROTECTED BY THE FIRST AMENDMENT OBVIOUSLY NO SOCIETY COULD TOLERATE UNRESTRICTED FORCEFUL ENTRY AND TRESPASS BUT JUST AS OBVIOUSLY THESE ILLEGAL BUT ESSENTIALLY PEACEFUL FORMS OF PROTEST HAVE SERVED A VERY IMPORTANT ROLE IN U. S. HISTORY BY DRAMATIZING OPPOSITION TO THE STATUS QUO ILLEGAL PROTEST HAS ALSO CHANNELED ALIENATED COMMUNITIES AWAY FROM VIOLENCE AND INTO THE STYLIZED ACTIONS OF CIVIL DISOBEDIENCE AND THE SIT IN THESE FORMS OF ILLEGAL PROTESTS HAVE BEEN MANAGED BY AN UNSTATED BUT CLEAR SOCIAL CONVENTION THAT THE CRIMES COMMITTED ARE NOT THAT SERIOUS IN PRACTICE THE PROTESTERS ARE FORCIBLY REMOVED SPEND SOME TIME IN JAIL AND THE CHARGES ARE IN MOST CASES LATER DROPPED IF THE PROTESTS CONTINUE ACTUAL JAIL SENTENCES ARE SERVED BUT THESE SENTENCES USUALLY AMOUNT TO ONLY A FEW DAYS PROSECUTORS AND STATE JUDGES UNDERSTAND THAT THEIR ROLE IS TO MINIMIZE AND CONTROL THE DISRUPTIONS NOT TO END THE PROTESTS AND NOT TO DESTROY THE PROTESTING ORGANIZATION THE COURT'S SCHEIDLER DECISION PUTS AN END TO THIS ACCOMMODATION UNDER THE COURT'S OPINION TWO ACTS OF FORCEFUL ENTRY INTENDED TO INTERFERE WITH THE RIGHTS OF BUSINESS CAN BE CONSIDERED EXTORTION FOR PURPOSES OF THE RICO ACT EVEN IF THE CONTEXT IS OBVIOUSLY ONE OF POLITICAL STRUGGLE RATHER THAN ECONOMICALLY MOTIVATED CRIMINAL ACTIVITY THUS IF ABORTION DEMONSTRATORS TWICE PUSH THEIR WAY INTO A CLINIC'S WAITING ROOM OCCUPY IT BLOCK THE HALLWAYS AND REFUSE TO MOVE THE DEMONSTRATORS ARE ALL SUBJECT TO RICO THEY MAY BE JAILED FOR UP TO TWENTY YEARS THEY CAN BE MADE TO PAY TREBLE DAMAGES AND SLASH OR PUNITIVE DAMAGES THE ORGANIZATION THAT SPONSORED THEM AND ANYONE WHO ENCOURAGED THEM ARE SUBJECT TO THE SAME SEVERE PENALTIES IT IS CLEAR THAT UNDER THESE CIRCUMSTANCES ONLY THE HARDIEST SOULS WILL ENGAGE IN SIT INS ORGANIZATIONS LIKE GREENPEACE THAT ROUTINELY ENGAGE IN SUCH ACTIVITY ARE NO DOUBT SERIOUSLY RECONSIDERING THEIR TACTICS IT IS TRUE THAT EVEN UNDER THE SCHEIDLER OPINION THE PROTESTER WILL EVENTUALLY BE ABLE TO ARGUE TO A CIVIL OR CRIMINAL JURY THAT THE PROTEST ACTIVITY DID NOT AMOUNT TO EXTORTION BECAUSE THERE WAS INSUFFICIENT FORCE OR BECAUSE OTHERS PRESENT AT THE PROTEST WERE NOT REASONABLY PUT IN FEAR BY THE PROTEST SOMETIMES THEY WILL WIN SUCH ARGUMENTS BUT THE PROTECTION OF THE JURY THOUGH IMPORTANT DOES NOT LESSEN SCHEIDLER'S THREAT TO THE SIT IN IF THE REALISTIC POTENTIAL PUNISHMENT FOR A SIT IN IS A DAY OR TWO IN JAIL MANY PEOPLE WILL ENGAGE IN THE PRACTICE IF THE STAKES ARE INSTEAD A JURY TRIAL A SUBSTANTIAL FINE TWENTY YEARS IN JAIL AND CIVIL DAMAGES FEW PEOPLE WILL SIT IN IT IS ALSO TRUE THAT CONCURRING JUSTICES SOUTER AND KENNEDY ARE AWARE THAT THE SCHEIDLER DECISION THREATENS SOCIAL PROTEST JUSTICE SOUTER INVOKED A NINETEEN EIGHTY TWO CASE N. DOUBLE A. C. P. V. CLAIBORNE HARDWARE COMPANY TO REMIND LOWER COURT JUDGES TO BE SENSITIVE TO FREE SPEECH VALUES IN TRYING RICO CASES CLAIBORNE HELD THAT THE N. DOUBLE A. C. P. COULD NOT BE LIABLE FOR ORGANIZING A CIVIL RIGHTS BOYCOTT OF LOCAL BUSINESSES EVEN THOUGH BOYCOTTS BY ECONOMIC COMPETITORS ARE ACTIONABLE UNFORTUNATELY AS JUSTICE SOUTER NOTES CASES LIKE CLAIBORNE PROTECT SOCIAL PROTEST ONLY TO THE EXTENT THAT THE ACTIONS TAKEN TURN OUT TO BE FULLY PROTECTED FIRST AMENDMENT ACTIVITY THE SIT IN IS NOT PROTECTED BY THE FIRST AMENDMENT NOR SHOULD IT BE PEOPLE CANNOT BE ALLOWED FREELY TO INVADE THE PROPERTY OF OTHERS THAT DOES NOT MEAN HOWEVER THAT WE SHOULD TRY TO STAMP OUT SIT INS COMPLETELY THE SIT IN SHOULD BE DISCOURAGED BY THE LAW OF TRESPASS IT SHOULD NOT BE SUBJECT TO FELONY AND TREBLE DAMAGE TREATMENT AS RICO WOULD ALLOW NO DOUBT THERE ARE MANY WHO APPLAUD THE COURT'S DECISION IN SCHEIDLER SOME DO SO BECAUSE THEY SUPPORT ABORTION RIGHTS AND CONSIDER ANTIABORTION PROTESTERS TO BE TERRORISTS SOME DO SO BECAUSE THEY SUPPORT PROPERTY RIGHTS AND SEE NO REASON WHY THE LAW SHOULD EVER BE VIOLATED THESE VIEWS ARE SHORT SIGHTED RICO WAS NEVER NEEDED TO COMBAT TRULY VIOLENT PROTEST MURDER ASSAULT AND ARSON ALREADY CARRY SEVERE STATE AND FEDERAL PENALTIES RICO LAWSUITS WILL NOT BE AIMED AT THEM RATHER THEY WILL BE AIMED AT ILLEGAL BUT ESSENTIALLY PEACEFUL PROTEST FIRST ABORTION CLINICS WILL USE RICO TO DEFEND THEMSELVES AGAINST PROTEST EVENTUALLY POWERFUL ECONOMIC INTERESTS MAY DO SO PROTEST WILL NOT END BUT IT WILL BECOME LESS OPEN AND MORE SECRETIVE LESS PEACEFUL AND MORE VIOLENT LESS HOPEFUL AND MORE BITTER MR. LEDEWITZ IS A PROFESSOR OF LAW AT DUQUESNE UNIVERSITY IN PITTSBURGH SOUTHERN UNION COMPANY SAID IT PAID ABOUT FOUR HUNDRED MILLION DOLLARS TO ACQUIRE NATURAL GAS PROPERTIES AND OPERATIONS FROM WESTERN RESOURCES INCORPORATED SOUTHERN UNION'S PURCHASE OF THE PROPERTIES AND OPERATIONS IN WESTERN AND CENTRAL MISSOURI WAS FIRST ANNOUNCED IN JULY NINETEEN NINETY THREE WITH THE ACQUISITION SOUTHERN UNION A NATURAL GAS DISTRIBUTION COMPANY BASED IN AUSTIN TEXAS GAINED APPROXIMATELY FOUR HUNDRED SIXTY THOUSAND CUSTOMERS NEARLY DOUBLING ITS CUSTOMER BASE THE COMPANY SAID IT FUNDED THE ACQUISITION THROUGH A RECENT COMMON STOCK OFFERING AND SALE OF SENIOR NOTES WESTERN RESOURCES A KANSAS CITY MISSOURI UTILITY SAID IT WOULD USE THE PROCEEDS TO LOWER LONG TERM AND SHORT TERM DEBT THE DOLLAR TUMBLED TO NEW LOWS FOR THIS YEAR AGAINST THE YEN ON FRESH CONCERNS OVER THE FUTURE DIRECTION OF U. S. INTEREST RATES AND OVER STALLED TRADE NEGOTIATIONS WITH JAPAN THE DOLLAR FELL HEAVILY AGAINST MOST OTHER MAJOR CURRENCIES BUT RECOVERED SOME LOST GROUND ON PROMISING NEW U. S. ECONOMIC DATA AND A SPATE OF SHORT COVERING AND BARGAIN HUNTING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN THREE TWO OH MARKS DOWN FROM ONE POINT SEVEN THREE FOUR FIVE MARKS LATE MONDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED SEVEN POINT SEVEN OH YEN DOWN FROM ONE HUNDRED EIGHT POINT SEVEN OH YEN STERLING WAS TRADING AT ONE POINT FIVE OH ONE OH DOLLARS DOWN FROM ONE POINT FIVE OH SIX OH DOLLARS ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED EIGHT POINT TWO OH YEN AND AT ONE POINT SEVEN THREE THREE SIX MARKS THE SURPRISE RESIGNATION OF DAVID MULLINS VICE CHAIRMAN OF THE FEDERAL RESERVE YESTERDAY ROUSED SPECULATION THAT U. S. INTEREST RATES LONG THOUGHT TO BE HEADED FOR HIGHER GROUND WILL STAY FLAT THE DEPARTURE OF MULLINS CONSIDERED AN ANTI INFLATION HAWK OPENS THE WAY FOR PRESIDENT CLINTON TO APPOINT AN INFLATION DOVE AS HIS SUCCESSOR THE MOVE ALSO COUNTERED SOMEWHAT WARNINGS ON MONDAY BY ALAN GREENSPAN THE FED'S CHAIRMAN THAT SHORT TERM U. S. RATES WILL MOVE HIGHER EVENTUALLY IN ORDER TO PREVENT ANY RETURN OF INFLATION MR. MULLINS WHO WILL RESIGN FEBRUARY FOURTEENTH SAID HE WON'T ATTEND THE MEETING OF THE FEDERAL OPEN MARKET COMMITTEE TOMORROW AND FRIDAY TRADERS SAID THAT MAY DIMINISH THE LIKELIHOOD OF A PANEL VOTE IN FAVOR OF HIGHER RATES AT THIS WEEK'S MEETING IN ADDITION MR. MULLINS' LEAVE TAKING COINCIDES WITH THE DEPARTURE FEBRUARY TENTH OF FEDERAL RESERVE GOVERNOR WAYNE ANGELL A FAR MORE RESOLUTE ANTI INFLATION HAWK QUOTE YOU HAVE TWO PEOPLE THAT HISTORICALLY HAVE BEEN INFLATION FIGHTERS LEAVING AT THE SAME TIME QUOTE SAID ALAN LESLIE CHIEF ECONOMIST FOR DISCOUNT CORPORATION OF NEW YORK THEY WERE BOTH APPOINTED BY MORE CONSERVATIVE ADMINISTRATIONS AND EXPECTATIONS ARE THAT CLINTON WILL APPOINT MORE GROWTH ORIENTED PEOPLE AS OPPOSED TO ANTI INFLATION PEOPLE WHICH MEANS LOWER INTEREST RATES AND A LOWER DOLLAR HE SAID THE MULLINS ANNOUNCEMENT BROUGHT THE DOLLAR TO ITS INTRADAY LOW OF ONE HUNDRED SEVEN POINT FIVE FIVE YEN THE LOWEST LEVEL SINCE DECEMBER EIGHTH TRADERS ALSO SAID THE SLIDE WAS PUSHED ALONG BY CONCERNS THAT U. S. TRADE REPRESENTATIVE MICKEY KANTOR'S TRIP TO JAPAN TO FURTHER TRADE NEGOTIATIONS WILL BE TOO LITTLE TOO LATE THE DOLLAR YEN IS REACTING TO MICKEY KANTOR SAID CARL FORCHESKI A TRADER AT CHEMICAL BANK THERE ARE WORRIES THAT NOTHING WILL COME OF HIS VISIT INDEED JAPAN IS UNDER THE GUN TO PRODUCE A VIABLE TRADE AGREEMENT PRIOR TO PRIME MINISTER MORIHIRO HOSOKAWA'S MEETING WITH MR. CLINTON FEBRUARY ELEVENTH AND TRADERS FEAR THAT LACK OF AN AGREEMENT WILL PROMPT MORE U. S. PRESSURE FOR A STRONG YEN MEANWHILE THE DOLLAR MADE A PARTIAL RECOVERY FROM ITS FALL AGAINST THE MARK ON A COMBINATION OF SHORT COVERING AND PROMISING U. S. ECONOMIC DATA THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S JANUARY REPORT SHOWED ITS OVERALL INDEX OF BUSINESS ACTIVITY ROSE TO FIFTY SEVEN POINT SEVEN PERCENT FROM FIFTY SEVEN POINT ONE PERCENT IN DECEMBER ECONOMISTS HAD PREDICTED A DECLINE TO FIFTY SIX PERCENT PRESIDENT CLINTON IS TAKING POLITICAL SOUNDINGS ON WHETHER HE SHOULD LIFT THE TRADE EMBARGO AGAINST VIETNAM ALTHOUGH I FOUGHT AND WAS WOUNDED IN THE VIETNAM WAR AND FOR YEARS OPPOSED LIFTING THE EMBARGO I NOW BELIEVE WITH ONE IMPORTANT CAVEAT THAT IT IS IN THE INTEREST OF BOTH OUR PEOPLES AS WELL AS OF AMERICA'S FUTURE ROLE IN ASIA TO MOVE FORWARD OVER THE PAST THREE YEARS I HAVE SPENT A GREAT DEAL OF TIME TRAVELING THROUGHOUT VIETNAM IT HAS NOT ALWAYS BEEN PLEASANT THE COUNTRY'S INFRASTRUCTURE IS BADLY DETERIORATED AND TO PUT IT MILDLY ITS OFFICIALS HAVE NOT ALWAYS WELCOMED ME BUT CHANGES HAVE OCCURRED ALSO THE U. S. EMBARGO LOST MUCH OF ITS ECONOMIC LEVERAGE MORE THAN A YEAR AGO WHEN JAPAN ENDED ITS OWN IRONICALLY THE STRONGEST INVESTORS IN VIETNAM ARE ANTI COMMUNIST COUNTRIES JAPAN SOUTH KOREA TAIWAN SINGAPORE AND HONG KONG PROBABLY THE UGLIEST NEW BUILDING IN DOWNTOWN SAIGON IS A MASSIVE GREEN GLASS STRUCTURE ERECTED BY THE SOUTH KOREAN TRADE MINISTRY IN ADDITION TO THE EMBARGO'S HAVING LOST ITS ORIGINAL PURPOSE TWO VITAL CONCERNS DICTATE THAT WE NOW MOVE CAREFULLY BUT SURELY TOWARD NORMALIZATION WITH VIETNAM THE FIRST REGARDS OUR DIMINISHED PRESENCE IN ASIA AT A TIME WHEN CHINA IS GROWING EVER STRONGER AND MORE DANGEROUS VIETNAM RETAINS A HISTORICAL ANTIPATHY TO CHINA AS CHINA'S ECONOMIC AND POLITICAL MIGHT EXPANDS ONE CAN FORESEE FUTURE CIRCUMSTANCES WHERE VIETNAMESE AND AMERICAN INTERESTS COULD INTERSECT THE SECOND RELATES TO AN UNFINISHED OBLIGATION TO THE VIETNAMESE WHO STOOD WITH US DURING THE WAR AND WHO CONTINUE TO SUFFER SECOND CLASS CITIZENSHIP AS A RESULT WE ARE LITERALLY THE ONLY PEOPLE ON EARTH WHO RETAIN MEMORIES OF THE BRAVE AND CARING ALLIES WHO WERE HUMILIATED AFTER OUR WITHDRAWAL MOST OF WHOM WILL NEVER HAVE A FULL LIFE WITHOUT OUR REINVOLVEMENT IT WOULD BE SHAMEFUL FOR OUR COUNTRY TO BEGIN A NEW RELATIONSHIP WITHOUT PROTECTING THOSE WHO HAVE SUFFERED SO GREATLY AS A RESULT OF OUR OLD RELATIONSHIP LIFTING THE EMBARGO WILL BE STRONGLY RESISTED BY MANY INCLUDING SEVERAL WELL INTENTIONED VETERANS GROUPS THAT REMAIN CONCERNED OVER THE LACK OF FULL ACCOUNTING OF THOSE STILL LISTED AS MISSING IN ACTION FROM THE WAR THE P. O. W. DILEMMA IS ONE OF THE GREAT TRAGEDIES OF OUR TIME ITS ROOTS WERE IN HANOI'S UNPRECEDENTED USE OF P. O. W.S AS NEGOTIATING QUOTE PEARLS QUOTE WHICH TURNED P. O. W.S INTO ANONYMOUS HOSTAGES AND IN THE AMERICAN GOVERNMENT'S FAILURE TO OBTAIN A BY NAME LISTING OF THOSE WHO WERE BEING HELD IN CAPTIVITY PRIOR TO THE SIGNING OF THE PARIS PEACE ACCORDS WE KNEW FROM THE FRENCH WAR IN INDOCHINA THAT SUCH AN ACCOUNTING SHOULD HAVE BEEN REQUIRED LACKING SUCH A LIST WE HAVE BEEN OPERATING IN THE DARK EVER SINCE THE PRESENT P. O. W. SEARCH INSIDE VIETNAM HAS BEEN WELL EXECUTED BY BOTH SIDES AND THE VIETNAMESE GOVERNMENT HAS FULLY COOPERATED IN THIS EFFORT BUT IN TERMS OF SOLVING THE ISSUE OF WHETHER AMERICANS WERE HELD INSIDE VIETNAM AFTER THE WAR IT APPROACHES FARCE TENS OF MILLIONS OF DOLLARS HAVE BEEN SPENT IN SEARCHING REMOTE JUNGLE AREAS WHERE CRASHES OCCURRED A QUARTER CENTURY AGO WHEN THE ANSWERS IF AVAILABLE AT ALL CAN BE FOUND ONLY IN COMPARTMENTED INTELLIGENCE DATA KEPT BY THE U. S. VIETNAM CHINA AND RUSSIA FOR THIS REASON IT ALSO HAS BEEN FRUITLESS FOR OUR POLITICIANS TO BERATE VIETNAMESE DIPLOMATS FOR NOT PRODUCING INFORMATION THEY WOULD NO MORE HAVE SUCH SENSITIVE INFORMATION THAN WOULD OUR DIPLOMATS LOOKING BACK THE SORT OF PRESSURE THAT HAS BEEN BROUGHT ON THE P. O. W. ISSUE BY WELL MEANING AMERICANS HAS SURELY BEEN COUNTERPRODUCTIVE IF THE VIETNAMESE WERE INDEED HOLDING LIVE AMERICANS AFTER THE WAR THE GREATEST DETERRENT TO RELEASING THEM AND THE GREATEST DANGER TO THEIR SURVIVAL WOULD BE LOUD ACCUSATIONS AND THREATS ACCUSATIONS INVOLVE A LOSS OF FACE QUIET NEGOTIATION IS THE ASIAN WAY MUCH OF THE EMOTION OVER THE P. O. W. ISSUE STEMS FROM THE REALITY THAT IT PROVIDES ONE OF THE FEW FOCAL POINTS FOR THOSE WHO KNOW WE SHOULD HAVE DEFEATED THE COMMUNISTS AND WHO REMAIN RIGHTFULLY ANGRY AT THEIR BLATANT VIOLATIONS OF THE NINETEEN SEVENTY THREE PARIS PEACE ACCORDS THE REPRESSION THEY BROUGHT AFTER THEIR NINETEEN SEVENTY FIVE TAKEOVER MORE SOUTH VIETNAMESE DIED IN RE EDUCATION CAMPS AFTER THE WAR THAN AMERICANS DID DURING THE WAR AND THE FAILURE OF THOSE WHO OPPOSED THE WAR IN THIS COUNTRY TO ACKNOWLEDGE THAT THEY ERRED IN THEIR JUDGMENT OF COMMUNIST INTENTIONS THE BEST WAY TO ADDRESS THOSE HISTORICAL INEQUITIES IS TO REMEMBER WHAT BROUGHT US INTO SOUTH VIETNAM IN THE FIRST PLACE AND TO PLEDGE AN EFFORT TO ASSIST THE PEOPLE OF VIETNAM AS THEY REACH TOWARD ECONOMIC GROWTH AND POLITICAL LIBERALIZATION THEREFORE I HAVE BEEN PROPOSING FOR MORE THAN A YEAR THAT OUR GOVERNMENT DO THE FOLLOWING LIFT THE TRADE EMBARGO IMMEDIATELY WITH THE VIETNAMESE GOVERNMENT CLEARLY STATING THAT ALL VIETNAMESE REGARDLESS OF THEIR WARTIME AFFILIATION HAVE THE RIGHT TO SHARE FULLY IN THE BENEFITS OF RENEWED ECONOMIC AND POLITICAL TIES WITH THE U. S. AS VIETNAM'S POLICY OF EQUAL TREATMENT BECOMES MEASURABLE AND CLEAR AND AS OTHER ISSUES SUCH AS POLITICAL PRISONERS AND P. O. W. SLASH M. I. A.S ARE ACCEPTABLY RESOLVED RECIPROCATE BY ESTABLISHING FULL DIPLOMATIC RELATIONS AFTER NORMALIZATION CONSIDER GRANTING MOST FAVORED NATION TRADING STATUS TO VIETNAM BASED ON VIETNAM'S CONTINUED COMMITMENT TO ALLOWING ALL CITIZENS EQUAL ACCESS TO THE BENEFITS OF THE NEW RELATIONSHIP WITH THE U. S. IF THIS POLICY IS ADOPTED AND PURSUED THE RESULT COULD BE BETTER RELATIONS FOR THE U. S. IN ALL OF ASIA A BASIS FOR THE VIETNAMESE TO BEGIN A NEW ERA REMOVED FROM THE HATREDS AND RETRIBUTIONS OF THE PAST AND IN TIME A STRONG WESTERN ORIENTED ALLY WITH A MUTUAL INTEREST IN COUNTERBALANCING THE EVER BURGEONING STRENGTH OF CHINA MR. WEBB SERVED AS ASSISTANT SECRETARY OF DEFENSE AND SECRETARY OF THE NAVY IN THE REAGAN ADMINISTRATION INTER REGIONAL FINANCIAL GROUP INCORPORATED ITS BROKERAGE OPERATIONS BOOSTED BY THE STOCK MARKET'S CONTINUED STRENGTH REPORTED A THIRTY FOUR PERCENT INCREASE IN FOURTH QUARTER EARNINGS ON A TWELVE PERCENT UPTURN IN REVENUE NET FOR THE PARENT OF REGIONAL BROKERAGE FIRMS DAIN BOSWORTH INCORPORATED AND RAUSCHER PIERCE REFSNES INCORPORATED JUMPED TO TWELVE POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND FIFTY ONE CENTS A SHARE FROM NINE POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND ELEVEN CENTS A SHARE REVENUE ROSE TO ONE HUNDRED THIRTY FOUR POINT THREE MILLION DOLLARS FROM ONE HUNDRED TWENTY MILLION DOLLARS QUOTE EXCEPTIONAL MARKETS QUOTE HELPED THE HOLDING COMPANY TO A RECORD EARNINGS YEAR IRVING WEISER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN MINNEAPOLIS BUT HE ALSO CITED PRODUCTIVITY GAINS AND COST CONTROL EFFORTS YOUR JANUARY TWENTY SEVENTH ARTICLE THAT DISCUSSED THE F. A. S. B.'S MEETING ON JANUARY TWENTY SIXTH MAY HAVE CONFUSED YOUR READERS THE BOARD DISCUSSED SEVERAL REQUESTS TO DELAY THE EFFECTIVE DATE OF F. A. S. B. STATEMENT ONE HUNDRED FOURTEEN ACCOUNTING BY CREDITORS FOR IMPAIRMENT OF A LOAN INSTEAD OF DELAYING THE EFFECTIVE DATE THE BOARD DECIDED TO SIMPLIFY THE STATEMENT SO THAT IT WOULD BE EASIER FOR CREDITORS TO IMPLEMENT WE EXPECT TO ISSUE A PROPOSAL WITHIN THE NEXT FEW WEEKS THAT IN FINAL FORM WOULD ELIMINATE THE PROVISION THAT DESCRIBES HOW A CREDITOR SHOULD RECOGNIZE INCOME ON AN IMPAIRED LOAN THE SIMPLIFICATION WOULD NOT CHANGE THE BASIC PROVISION OF STATEMENT ONE HUNDRED FOURTEEN AND GENERALLY WOULD AFFECT ONLY THE CLASSIFICATION OF INCOME OR EXPENSE ON IMPAIRED LOANS NOT THE TOTAL AMOUNT OF INCOME OR EXPENSE RECOGNIZED OUTSIDE THE NEON LIT ENTRANCE TO FATTY'S RESTAURANT A POSTER INFORMS DINERS THAT A FIFTEEN PERCENT DISCOUNT IS OFFERED TO MEN WHO WEIGH MORE THAN TWO HUNDRED SEVEN POUNDS AND TO WOMEN OF MORE THAN ONE HUNDRED EIGHTY THREE POUNDS INSIDE THE TABLES ARE FULL A PLUMP TWENTY THREE YEAR OLD ENTREPRENEUR NAMED ZHANG WEIPING TAKES HIS TURN ON THE BATHROOM SCALE NEAR THE DOOR HIS RATHER SLIMMER COMPANIONS SHRIEK WITH DELIGHT AS HE WEIGHS IN AT TWO HUNDRED TWENTY ONE POUNDS QUOTE THIS IS THE FIRST TIME I'VE WEIGHED MYSELF IN A WHILE QUOTE MR. ZHANG BLUSHES THE WEIGHTY DISCOUNTS AREN'T JUST A GIMMICK SAYS MANAGER ZHANG YAN HIMSELF ALL OF TWO HUNDRED NINE POUNDS THEY'RE JUST ONE WEAPON IN THE BATTLE FOR CUSTOMERS IN THE MARKET ECONOMY YOU HAVE TO DO SOMETHING SPECIAL TO ATTRACT CUSTOMERS HE SAYS THERE ARE TOO MANY RESTAURANTS AND COMPETITION IS FIERCE SO FIERCE IN FACT THAT BEIJING'S RESTAURATEURS ARE DREAMING UP EVER MORE NOVEL CONCEPTS TO ATTRACT CUSTOMERS THE REMEMBERING BITTERNESS THINKING OF SWEET THINGS RESTAURANT WHICH OPENED IN OCTOBER IN XIDAN BEIJING'S BUSIEST SHOPPING AREA USED TO BE A KINDERGARTEN NOW ITS MENU BASED ON THE HARDSHIP FOOD OF THE DARKEST DAYS OF THE CULTURAL REVOLUTION IS PACKING IN CROWDS OF DINERS ITS NAME HAS A HISTORY DURING THE CULTURAL REVOLUTION YOUNG PEOPLE SENT TO THE COUNTRYSIDE WOULD BE EXPECTED TO ATTEND MEALS ONCE OR TWICE A YEAR KNOWN AS REMEMBERING BITTERNESS THINKING OF SWEET THINGS THE FOOD WAS ALMOST INEDIBLE BUT NOBODY DARED TO SAY SO AND WE HAD TO SHOUT OUT LOUD DOWN WITH THE LANDLORDS DURING THE MEAL RECALLS A MIDDLE AGED CIVIL SERVANT MRS. WANG THAT IS EXACTLY THE SORT OF MEMORY MANAGER DUAN YUNSONG AIMED TO CONJURE UP WHEN HE NAMED THE RESTAURANT THOUGH HE HIMSELF AT TWENTY THREE IS TOO YOUNG TO SHARE IN THE NOSTALGIA THE FIRST THOUGHT PEOPLE HAVE WHEN THEY HEAR THE NAME MUST BE THAT IT SOUNDS INTERESTING AND THEY SHOULD GIVE IT A GO SAYS DEPUTY MANAGER ZHANG SHUSEN NEVER MIND WHETHER OR NOT IT TURNS OUT TO BE ANY GOOD THE CONCEPT'S WORKING DINERS MUST QUEUE FOR A TABLE AT REMEMBERING BITTERNESS ONCE THROUGH THE DOOR OF THE PICTURESQUE COURTYARD THEY STEP BACK IN TIME CORN COBS HANG FROM THE EAVES INCENSE BURNS IN FRONT OF A STATUE OF THE GOD OF WEALTH AND THE RESTAURANT EVEN OFFERS FREE SHOESHINES FIRST TIME DINERS MAY ARRIVE EXPECTING STARVATION RATIONS BUT IN FACT THE FOOD IS QUITE TASTY QUOTE WE CAN'T REALLY EXPECT PEOPLE TO EAT HUSKS QUOTE EXPLAINS THE RESTAURANT'S ADVISER LIU ZHENGJING THE FOOD IS NORTHERN HOME COOKING OFFERING WILLOW LEAVES WILD GREENS CORN BREAD AND INSECTS YES INSECTS THERE ARE SAUTEED CATERPILLARS STILL FAT AND CREAMY WHITE ON THE PLATE IF THESE DO NOT APPEAL THERE'S THE CRISP BLACKENED SHELL OF A DEEP FRIED LOCUST WHICH TASTES OF NOTHING MUCH IN PARTICULAR A PLATE OF SILKWORM CHRYSALIDES SCORPIONS OR CICADAS FILLS ANY GAPS THEY ARE FULL OF PROTEIN EXPLAINS ONE ENTHUSIASTIC AND RATHER DRUNK DINER POPPING A CATERPILLAR IN HIS MOUTH AND THEY ARE NOT POLLUTED BY ANYTHING NOR ARE THEY TRADITIONAL NORTHERN FARE WE ATE GRASSHOPPERS DURING TIMES OF FAMINE SAYS MR. LIU BUT PEOPLE ONLY STARTED EATING THE OTHER INSECTS RECENTLY IT'S A SOUTHERN HABIT EATING INSECTS SNIFFS ONE MIDDLE AGED MAN EATING SUCH CREEPY CRAWLIES SEEMS TO BE A FASHIONABLE SYMBOL OF MACHISMO AMPLY DEMONSTRATED BY A TABLE OF POLICEMEN WHO TUCK INTO A SELECTION WHILE POURING GLASSES OF ERGUOTOU THE CLEAR GRAIN LIQUOR SO POPULAR AMONG BEIJING'S SERIOUS DRINKERS ONCE FINISHED RESIDENTS OF REMEMBERING BITTERNESS'S XIDAN ARE OFFERED A FREE RIDE HOME IN A RESTAURANT OWNED PEDICAB WHICH IS DECORATED WITH BUNCHES OF PLASTIC GRAPES AS WELL AS COPIOUS ADVERTISING IN THE NORTH OF THE CITY A BIRDLIKE SIXTY FOUR YEAR OLD PEASANT WOMAN WITH GRAY HAIR HAS ALSO DISCOVERED THAT HISTORY MAKES GOOD MARKETING TANG RUIREN HAS SET UP A RESTAURANT ON THE STRENGTH OF ONE PHOTOGRAPH TAKEN MORE THAN THIRTY YEARS AGO WHEN CHAIRMAN MAO VISITED HIS HOMETOWN SHAOSHAN IN HUNAN PROVINCE MRS. TANG WAS ONE OF MANY PEOPLE WORKING THE NEARBY FIELDS BUT SHE HAD THE LUCK TO BE PHOTOGRAPHED STANDING WITH A FEW OTHERS HER SON IN HER ARMS LITTLE MORE THAN THREE FEET FROM THE GREAT HELMSMAN HIMSELF NOT LONG AFTERWARD SHE SET UP THE MAO FAMILY RESTAURANT IN SHAOSHAN NOW SHE HAS OPENED A BRANCH IN BEIJING'S DONGCHENG DISTRICT THE FACADE IS OF WOODEN LOGS IN THE STYLE OF MAO'S BIRTHPLACE AND A GIANT COPY OF THE FAMOUS PHOTOGRAPH IS GIVEN PRIDE OF PLACE IN THE DINING ROOM MAO WOULD TURN IN HIS CRYSTAL SARCOPHAGUS IF HE COULD SEE THE REST SEVERAL PRIVATE BANQUET ROOMS A KARAOKE ROOM COMPLETE WITH FLASHING DISCO LIGHTS A BAR AN ILLUMINATED DANCE FLOOR AND DRINKING BOOTHS LIT BY A SOFT RED GLOW I AM NOT A CAPITALIST I DON'T DO THIS TO MAKE MONEY PROTESTS MRS. TANG AS SHE EATS AN EVENING BOWL OF RICE AND PLATE OF RED CHILIS QUOTE THERE ARE LOTS OF VETERAN REVOLUTIONARIES AND THEIR CHILDREN WHO HAVEN'T BEEN TO SHAOSHAN THEY DON'T KNOW WHETHER THE FOOD CHAIRMAN MAO ATE WAS GOOD WHETHER THE WINE HE DRANK WAS GOOD SO I'VE BROUGHT THEM TO BEIJING QUOTE IN FACT SHE IS MAKING ENOUGH TO PAY THOUSANDS OF YUAN IN TAXES EVERY MONTH AND TO MAKE DONATIONS TO THE COMMUNIST PARTY IN RETURN FOR WHICH THE COMMUNIST YOUTH LEAGUE AND OTHERS HEARTILY ENDORSE HER RESTAURANT IN THE RESTAURANT'S DRAFTY PUBLIC DINING ROOM THE FOOD AT LEAST IS HOT EMPLOYING THE CHILIS SO BELOVED OF HUNAN PROVINCE WHICH ARE REPUTED TO BREED FEARLESS REVOLUTIONARIES THE MOST POPULAR DISHES ARE THOSE WHICH MAO IS SAID TO HAVE ENJOYED ONE IS HUOBEIYU AN ANCHOVY LIKE FISH THAT LIVED IN THE POND OUTSIDE MAO'S HOUSE THEY'RE COOKED DRY THEN SMOKED AND FRIED WITH CHILI ANOTHER IS HONGSHAOROU GREAT LUMPS OF FAT BACON IN A RICH RED SAUCE DESPITE SUCH TEMPTING FARE CYNICS BELIEVE THAT THE MAO FAMILY RESTAURANT'S SUCCESS OWES LESS TO THE POPULARITY OF MAO THAN TO ITS SHEER NOVELTY VALUE RIGHT NOW IN BEIJING SAYS ONE PATRON YOU COULD OPEN A RESTAURANT CALLED HITLER'S AND PEOPLE WOULD GO TO IT MS. SAMPSON IS A JOURNALIST IN BEIJING IN A DECEMBER TWENTY SEVENTH MARKETPLACE ARTICLE ON AN A. B. C. NEWS BROADCAST OF A NEW ALLEGATION ABOUT A CONSPIRACY TO KILL MARTIN LUTHER KING I WAS DESCRIBED AS A HOLLYWOOD PRODUCER WHO QUOTE HELPED REV THE ENGINE QUOTE BY SHOPPING THE THEORY TO QUOTE SIXTY MINUTES QUOTE THIS WAS AN UNFAIR CHARACTERIZATION ALL I DID WAS ASK A FORMER COLLEAGUE AT THE C. B. S. NEWSMAGAZINE TO INVESTIGATE THE THEORY TO SEE WHETHER OR NOT IT WAS TRUE IF THE STORY HAD CREDIBILITY SIXTY MINUTES AND I MIGHT BOTH HAVE A STORY IF IT DIDN'T I WOULD HAVE NOTHING NOT EVEN HOLLYWOOD DARES TO MAKE A HISTORICAL FILM FROM A NONSTORY THE STORY OF DOCTOR KING'S MURDER STILL CONTAINS GIANT QUESTION MARKS I WOULD THINK ANY NEWS ORGANIZATION WORTH ITS REPUTATION WOULD TRY TO FIND OUT WHAT HAPPENED TO HIM IF MORE REPORTORIAL ENERGY WERE EXPENDED IN THAT DIRECTION INSTEAD OF REPORTING ON THE BEHAVIOR OF OTHER NEWS ORGANIZATIONS AND PRODUCERS SUCH AS ME MAYBE HISTORY WOULD BE THE BENEFICIARY YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS CHANGED LITTLE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIX MONTH SMALL DENOMINATION QUOTE SAVINGS QUOTE C. D.S EASED TO TWO POINT SEVEN ONE PERCENT FROM TWO POINT SEVEN TWO PERCENT ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVE YEAR SAVINGS C. D.S SLIPPED TO FOUR POINT FOUR TWO PERCENT FROM FOUR POINT FOUR FOUR PERCENT THE WILMINGTON DELAWARE INFORMATION SERVICE SAID ON LARGE DENOMINATION JUMBO C. D.S WHICH TYPICALLY REQUIRE DEPOSITS OF NINETY FIVE THOUSAND DOLLARS AND MORE THE AVERAGE YIELD ON A SIX MONTH CERTIFICATE INCHED UP TO TWO POINT SEVEN SEVEN PERCENT FROM TWO POINT SEVEN SIX PERCENT ACCORDING TO THE SURVEY ON FIVE YEAR JUMBOS THE AVERAGE DECLINED TO FOUR POINT SIX ONE PERCENT FROM FOUR POINT SIX THREE PERCENT BANXQUOTE REPORTED THE AVERAGE YIELD ON SIX MONTH BROKER SOLD C. D.S FELL TO THREE POINT OH TWO PERCENT FROM THREE POINT ONE OH PERCENT ACCORDING TO THE BANXQUOTE SURVEY ON FIVE YEAR BROKER SOLD C. D.S THE AVERAGE YIELD REMAINED AT FOUR POINT FOUR EIGHT PERCENT THE SURVEY SAID OUT OF THE RUBBLE OF WORLD WAR TWO THE JAPANESE PEOPLE WORKED AND SACRIFICED FOR FORTY FIVE YEARS TO BUILD THE WORLD'S SECOND RICHEST NATION THEY THEN TURNED AROUND LAST WEEKEND AND THUMBED THEIR NOSES AT THE WHOLE CLASS OF POLITICIANS WHO'D PRESIDED OVER THIS ECONOMIC MIRACLE PRIME MINISTER MORIHIRO HOSOKAWA A FUNCTIONAL NOBODY UNTIL A FEW MONTHS AGO SUDDENLY IS MORE POPULAR THAN MADONNA THE TOKYO STOCK MARKET JUMPED A STUNNING SEVEN POINT EIGHT PERCENT ON THE FIRST TRADING DAY AFTER HIS REFORM COMPROMISE PASSED THESE EVENTS ARE SOMETHING THAT THE REST OF ASIA WILL BE INSPECTING CLOSELY FOR THEY BEAR DIRECTLY ON THE QUESTION OF THE HOUR CAN GROWTH ECONOMICS BE DIVORCED FROM DEMOCRATIZATION THE SHORT ANSWER FROM TOKYO SEEMS TO BE A RESOUNDING NEGATIVE THE LONGER ANSWER REQUIRES AN EXCURSION INTO ECONOMIC HISTORY WITH THE RELEVANT PRECEDENT BEING ANOTHER LAND OF INDUSTRIOUS SOULS BRITAIN IN THE NINETEENTH CENTURY LIKE JAPAN UNTIL LAST SATURDAY THE BRITISH ELITE HAD TIED ITSELF TO INTEREST GROUPS WHOSE IDEA OF THE PUBLIC GOOD WAS INCREASINGLY AT ODDS WITH THE THINKING OF THE TOWNS AND EMERGING COMMERCIAL CLASSES WHATEVER THEIR OTHER MERITS THE EXISTING BATCH OF POLITICIANS HAD BECOME A STUMBLING BLOCK TO FURTHER GROWTH AND IT TOOK A MAJOR REVAMPING OF THE VOTING SYSTEM TO MOVE THEM OUT OF THE WAY THE PARALLEL TO MR. HOSOKAWA'S REJIGGERING OF JAPAN'S ELECTORAL SYSTEM WAS THE BRITISH PARLIAMENT'S GREAT REFORM OF ONE THOUSAND EIGHT HUNDRED THIRTY TWO IT DOUBLED AT A STROKE THE NUMBER OF URBANITES ENTITLED TO VOTE AND DID AWAY WITH THE NOTORIOUS QUOTE ROTTEN BOROUGHS QUOTE WHICH HAD ALLOWED MANY A RURAL GRANDEE TO NOMINATE AND ELECT HIS OWN MEMBER OF PARLIAMENT ONE LORD OF THE MANOR REGULARLY SENT HIS RETAINERS OUT IN A ROWBOAT TO SELECT A MEMBER FOR A DISTRICT THAT HAD BEEN SUBMERGED FOR CENTURIES IN SIMILAR FASHION MR. HOSOKAWA'S REFORMS ARE AIMED AT REDUCING THE ELECTORAL CLOUT OF JAPAN'S RICE FARMERS WHO EFFECTIVELY ENJOY THREE TIMES AS MUCH REPRESENTATION IN THE DIET AS THE AVERAGE CITY DWELLER THE REFORMS ARE ALSO SUPPOSED TO CLIP THE WINGS OF THE SHADY FUND RAISERS WHO HAVE LONG FINANCED THE CAMPAIGNS OF THE LIBERAL DEMOCRATIC PARTY EVEN THOUGH IT WAS ONLY A WATERED DOWN VERSION THAT FINALLY SQUEAKED THROUGH THE PRESSURE FOR CHANGE WILL PERSIST BOTH SETS OF REFORMS TENDED TO TRANSFER POWER FROM PROTECTIONIST INTERESTS TO CONSUMERIST INTERESTS THE BRITISH HAD THINKERS LIKE RICHARD COBDEN AND DAVID RICARDO WHO ELABORATED THEORIES OF FREE TRADE AND COMPARATIVE ADVANTAGE TO EXPLAIN WHY THIS WAS GOOD IDEAS MATTER IN TIMES LIKE THESE NOT LEAST BECAUSE THEY HELP TO FOCUS RESENTMENT CONSTRUCTIVELY EVEN SO THE AVERAGE NINETEENTH CENTURY BRIT DIDN'T NEED A PROFESSOR TO EXPLAIN WHY MERCANTILIST LEGISLATION CUT INTO HIS STANDARD OF LIVING IT WAS NO ACCIDENT THAT THE ENFRANCHISEMENT OF URBAN VOTERS WAS SOON FOLLOWED BY REPEAL OF THE CORN LAWS WHICH HAD KEPT THE PRICE OF BREAD HIGH IN ORDER TO FATTEN THE PURSES OF BRITAIN'S LANDED GENTRY THE JAPANESE TAKE JUSTIFIABLE PRIDE IN SEEING THE WORLD FILL UP WITH SONYS AND TOYOTAS AND OTHER EXCELLENT PRODUCTS FROM THEIR WORKSHOPS YET JAPANESE CONSUMERS HAVE EVERY RIGHT TO BE DISCONTENTED TRAVELING ABROAD IN GROWING NUMBERS THEY HAVE DISCOVERED THAT THEY DO INDEED LIVE IN RABBIT HUTCHES AT LEAST COMPARED WITH THE RESIDENTS OF OTHER INDUSTRIALIZED COUNTRIES AND PAY HIGHER PRICES FOR SONYS AND TOYOTAS THAN FOREIGNERS DO THE ELECTORAL POWER OF THE RURAL DISTRICTS DOES MORE THAN ALL THE SANCTIMONY SPOUTED BY THE RICE LOBBY TO EXPLAIN WHY JAPANESE HOUSEWIVES STILL SHELL OUT FOUR TIMES THE WORLD PRICE FOR RICE THAT'S WHAT COMES OF A POLITICAL SYSTEM TILTED TOWARD PROTECTING PRODUCERS FROM CONSUMERS TRUE THE JAPANESE APPROACH ALLOWED SOME WORKERS TO LAND LIFETIME TENURE AT BIG COMPANIES AND IT ALLOWED JAPAN TO RACK UP HUGE TRADE SURPLUSES WHICH SEEMED TO REPRESENT SOME KIND OF INSURANCE AGAINST THE WORLD AGAIN SHUTTING JAPAN OFF FROM RAW MATERIALS THESE NO DOUBT DID MUCH TO APPEASE THE PERVASIVE INSECURITY OF THE GENERATION THAT SURVIVED THE WAR AND SUBSEQUENT DEPRIVATION BUT HAVING GROWN RICHER AND MORE SECURE THE JAPANESE TODAY ARE LOOKING BEYOND MERE SECURITY AND BEGINNING TO SEEK THE OPPORTUNITY TO LIVE MORE FULLY WHEN THE PSYCHOLOGY OF A NATION SHIFTS IN RESPONSE TO CHANGING MATERIAL CIRCUMSTANCES IT'S THE JOB OF THE POLITICAL SYSTEM TO ACCOMMODATE EVOLVING ATTITUDES THE OLD RASCALS MUST GO AND MAKE WAY FOR NEW RASCALS WHO ARE MORE IN TUNE WITH THE TIMES EVEN IF IT SOMETIMES TAKES A POLITICAL REVOLUTION TO PERSUADE THE OLD CROWD THAT ITS DAYS ARE OVER JAPAN AND BRITAIN AT LEAST HAD DEMOCRATIC INSTITUTIONS IN PLACE WHEN THIS CHALLENGE CAME OTHER ASIAN COUNTRIES AND LEADERS ESPECIALLY THOSE THAT STILL ENTERTAIN THE NOTION THAT THEIR PEOPLE CAN GET RICH WITHOUT ALSO GETTING THE VOTE OUGHT TO PONDER THE LESSON MCCORMICK AND COMPANY ACQUIRED GRUPO PESA MEXICO CITY TERMS WEREN'T DISCLOSED PANHANDLE EASTERN CORPORATION'S TEXAS EASTERN TRANSMISSION CORPORATION UNIT FILED AN APPLICATION WITH THE FEDERAL ENERGY REGULATORY COMMISSION SEEKING APPROVAL TO TRANSPORT NATURAL GAS TO KENTUCKY UTILITIES COMPANY'S E. W. BROWN ELECTRIC GENERATING STATION NEAR DANVILLE KENTUCKY DONNELLY CORPORATION WILL BUILD A FIVE MILLION DOLLAR FACILITY NEAR LANGERS FRANCE THAT WILL MAKE WINDOW SYSTEMS FOR A NINETEEN NINETY FIVE MODEL MINIVAN TO BE PRODUCED BY EUROSTAR A JOINT VENTURE BETWEEN THE CHRYSLER CORPORATION AND STEYR DAIMLER PUCH CAMDEN PROPERTY TRUST ACQUIRED A TEN ACRE SITE SOUTH OF DENVER AND PLANS TO DEVELOP TWO HUNDRED SIXTEEN APARTMENTS AT A TOTAL PROJECT COST OF TWELVE POINT SIX MILLION DOLLARS AMERICAN ECOLOGY CORPORATION SIGNED A LETTER OF INTENT TO BUY THE ASSETS AND ASSUME CERTAIN LIABILITIES OF QUADREX CORPORATION'S QUADREX RECYCLE CENTER TERMS OF THE PACT WEREN'T DISCLOSED FIRST FIDELITY BANCORP COMPLETED ITS ACQUISITION OF GREENWICH FINANCIAL CORPORATION GREENWICH CONNECTICUT FOR FORTY ONE POINT NINE MILLION DOLLARS IN CASH MOTHERS WORK INCORPORATED COMPLETED ITS ACQUISITION OF PAGE BOY COMPANY DALLAS FOR ABOUT ONE POINT FIVE MILLION DOLLARS IN CASH AND STOCK THE JURISPRUDENTIAL WORLD ACCORDING TO EUGENE W. HICKOK AND GARY L. MCDOWELL IS DIVIDED INTO TWO CAMPS THOSE MOSTLY BUT NOT ALWAYS LIBERALS WHO SUBVERT JUDICIAL PROCESSES TOWARD IDEOLOGICAL ENDS AND THOSE WHO ADHERE TO CONSTITUTIONAL PRINCIPLES NO MATTER HOW UNJUST THE RESULT MESSRS HICKOK AND MCDOWELL COUNT THEMSELVES AMONG THE GUARDIANS OF THE CONSTITUTION'S TRUE VISION NONETHELESS DESPITE ATTACKING THE VERY REAL PROBLEM OF RESULTS ORIENTED JURISPRUDENCE THIS LATEST FORAY INTO THE WORLD OF QUOTE JUDICIAL RESTRAINT QUOTE AND QUOTE ORIGINAL INTENT QUOTE PROVES ULTIMATELY AS UNSATISFYING AS THE HOBSON'S CHOICE THAT FORMS ITS THESIS AS REFLECTED IN THE TITLE JUSTICE VERSUS LAW COURTS AND POLITICS IN AMERICAN SOCIETY FREE PRESS TWO HUNDRED FIFTY THREE PAGES TWENTY FOUR DOLLARS AND NINETY FIVE CENTS THE AUTHORS ASSERT THAT THESE VALUES OFTEN CONFLICT AND WHEN THEY DO OUR REPUBLIC'S SURVIVAL DEPENDS ON PROTECTING THE LATTER NO MATTER HOW GREAT THE SACRIFICE OF THE FORMER RONALD REAGAN MADE THIS SAME POINT WHEN HE PLEDGED TO APPOINT JUDGES WHO WOULD ACT LIKE JUDGES AND NOT LIKE A BUNCH OF SOCIOLOGY MAJORS BUT THE REAGAN REVOLUTION WAS INCOMPLETE ARGUE MESSRS HICKOK AND MCDOWELL FOR RATHER THAN DECIDING CASES ON THE BASIS OF CONCRETE PRINCIPLES UNDERSTOOD AS NEUTRALLY TRANSCENDING THE CASE AT HAND THE CONTEMPORARY JUDGE ALL TOO FREQUENTLY OPTS FOR ATTEMPTING TO INDIVIDUALIZE JUSTICE FOR THE CASE BEFORE HIM THE ILLUSTRATION THAT WINDS ITS WAY THROUGH THE BOOK IS THE NINETEEN SEVENTY NINE U. S. SUPREME COURT CASE OF DESHANEY VERSUS WINNEBAGO COUNTY IN WHICH A NINE YEAR OLD CHILD WHO WAS SAVAGELY BEATEN BY HIS FATHER TO THE POINT OF NEAR BRAIN DEATH SOUGHT MONETARY RECOVERY FROM THE SOCIAL SERVICES AGENCY THAT FAILED TO REMOVE HIM FROM HIS CLEARLY UNSAFE HOME THE LEGAL THEORY PRESSED BY THE LAD'S LAWYERS WAS THAT THE FOURTEENTH AMENDMENT'S DUE PROCESS CLAUSE IMPOSES AN AFFIRMATIVE DUTY UPON THE STATE TO PROTECT CITIZENS AGAINST OTHERS THE COURT RULED SIX TO THREE AGAINST JOSHUA DESHANEY BUT THE DISSENTERS EXEMPLIFIED WHAT MESSRS HICKOK AND MCDOWELL CONSIDER THE APOTHEOSIS OF LIBERAL ACTIVISM POOR JOSHUA PROCLAIMED JUSTICE HARRY BLACKMUN ASSAILING THE MAJORITY FOR FAILING TO FOLLOW A VIEW THAT COMPORTS WITH DICTATES OF FUNDAMENTAL JUSTICE AND RECOGNIZES THAT COMPASSION NEED NOT BE EXILED FROM THE PROVINCE OF JUDGING BUT IF DESHANEY WAS THE HIGH POINT FOR JUDICIAL RESTRAINT THE COURT QUICKLY REVERTED TO ACTIVIST FORM THREE YEARS LATER IN PLANNED PARENTHOOD OF SOUTHEASTERN PENNSYLVANIA VERSUS CASEY IN IT THE COURT PRESERVED THE RIGHT TO ABORTION WHILE UPHOLDING SOME RESTRICTIONS SUGGESTING THAT ADHERENCE TO ORIGINAL INTENT WOULD BE A CASE BY CASE EFFORT THE DECISION ARGUE THE AUTHORS GAVE POLITICAL EXPRESSION TO THE MORAL SENTIMENTS PRESUMED TO BE HELD BY THE PEOPLE MESSRS HICKOK AND MCDOWELL CORRECTLY ASSAIL JURISPRUDENCE BASED ON NOTHING MORE CONCRETE THAN WHAT JUSTICE WILLIAM DOUGLAS CALLED QUOTE PENUMBRAS FORMED BY EMANATIONS QUOTE WHICH ARE THE CONSTITUTIONAL EQUIVALENT OF EXHAUST FUMES BUT THE ALTERNATIVE VISION THEY PRESENT IN WHICH COURTS PASSIVELY DEFER TO LEGISLATIVE AND EXECUTIVE DECISIONS IS JUST AS MUCH A RECIPE FOR TYRANNY LIKE THE LIBERALS THEY CRITICIZE ADVOCATES OF JUDICIAL RESTRAINT ALSO HAVE A RESULTS ORIENTED AGENDA IN THEIR CASE IT IS STATES' RIGHTS AND UNFETTERED MAJORITARIANISM THEY EMBRACE ORIGINAL INTENT WHEN IT SERVES THOSE ENDS BUT IGNORE IT WHENEVER IT INVESTS THE JUDICIARY WITH POWER TO PROTECT INDIVIDUAL LIBERTIES FOR INSTANCE THE FOURTEENTH AMENDMENT EXPLICITLY GUARANTEES NOT ONLY DUE PROCESS AND EQUAL PROTECTION OF THE LAWS BUT ALSO THE PRIVILEGES OR IMMUNITIES OF CITIZENS WHICH ENCOMPASSES SUCH BASIC RIGHTS AS FREEDOM OF CONTRACT AND THE RIGHT TO WORK IN A CHOSEN BUSINESS OR PROFESSION BUT MESSRS HICKOK AND MCDOWELL PREFER TO DWELL ON ANOTHER SECTION OF THE AMENDMENT WHICH GIVES CONGRESS ENFORCEMENT POWERS SUCH SELECTIVE INTENT PRODUCES SOME ECCENTRIC RESULTS THE AUTHORS APPLAUD THE ONE THOUSAND EIGHT HUNDRED SEVENTY TWO SLAUGHTER HOUSE CASES WHICH EVISCERATED THE PRIVILEGES OR IMMUNITIES CLAUSE AND JUDICIAL PROTECTION FOR ECONOMIC LIBERTIES AND THEY ASSAIL BROWN VERSUS BOARD OF EDUCATION WHICH ABOLISHED THE SEPARATE BUT EQUAL DOCTRINE AS AN EXERCISE OF RAW POLITICAL POWER WHILE MESSRS HICKOK AND MCDOWELL'S PRESCRIPTION WOULD GO FAR TO CURB COURTS THAT CREATE RIGHTS OUT OF THIN AIR IT FUELS THE EVEN MORE PERNICIOUS FORM OF JUDICIAL ACTIVISM THAT READS PRECIOUS RIGHTS OUT OF THE CONSTITUTION IT THEREBY DENIES THE VITAL ROLE THE FRAMERS ASSIGNED TO THE JUDICIARY DEFERENTIAL TO MAJORITY WILL WHEN ADDRESSED TOWARD LEGITIMATE ENDS BUT VIGOROUSLY PROTECTIVE OF FUNDAMENTAL LIBERTIES THE DICHOTOMY BETWEEN LAW AND JUSTICE IS NOT NEARLY SO GREAT AS MESSRS HICKOK AND MCDOWELL WOULD HAVE IT AND TO SUGGEST OTHERWISE IS NOT ONLY TO BESTOW AN ENORMOUS LOGISTICAL ADVANTAGE UPON LIBERAL ACTIVISTS BUT TO UNRAVEL THE CONSTITUTIONAL TAPESTRY THAT WAS SO CAREFULLY WOVEN TO ENSURE A SOCIETY IN WHICH NOT ONLY DEMOCRACY BUT LIBERTY FLOURISHES MR. BOLICK IS LITIGATION DIRECTOR AT THE INSTITUTE FOR JUSTICE IN WASHINGTON D. C. THE SECURITIES AND EXCHANGE COMMISSION WORRIED ABOUT HIDDEN RISKS LURKING IN CERTAIN TRIPLE A RATED MORTGAGE SECURITIES IS INVESTIGATING WHETHER TO TIGHTEN DISCLOSURE STANDARDS ON SUCH SECURITIES KNOWN AS CASH FLOW OR QUOTE KITCHEN SINK QUOTE BONDS KITCHEN SINKERS SO NAMED BECAUSE THEY CONTAIN ALMOST EVERYTHING BUT ARE OFFSPRING OF COLLATERALIZED MORTGAGE OBLIGATIONS WHICH ARE BACKED BY THE INTEREST AND PRINCIPAL PAYMENTS FROM POOLS OF MORTGAGE LOANS IN ESSENCE KITCHEN SINK BONDS ARE CREATED BY LUMPING TOGETHER RISKY UNWANTED C. M. O.S INTO A TRUST AND RECYCLING THE TRUST'S CASH FLOWS INTO NEW SECURITIES THAT APPEAR MORE APPETIZING SINCE MAY WALL STREET HAS SOLD ABOUT FOUR BILLION DOLLARS OF SUCH KITCHEN SINKERS THIS IS THE FIRST TIME THE S. E. C. HAS RAISED QUESTIONS ABOUT THE COMPLEX C. M. O. MARKET WHICH REPRESENTS ABOUT EIGHT HUNDRED BILLION DOLLARS OF SECURITIES OUTSTANDING THE REGULATORY SCRUTINY HAS ALREADY HAD A CHILLING EFFECT ON NEW ISSUANCE OF EXOTIC TYPES OF C. M. O.S FOR EXAMPLE BEAR STEARNS AND COMPANY OF NEW YORK WHICH UNDERWROTE MORE THAN TWO THIRDS OF THE KITCHEN SINKERS OUTSTANDING SAYS IT WON'T SELL ANY MORE OF THEM UNTIL THE S. E. C. COMPLETES ITS REVIEW WE LOOK FORWARD TO AN OPPORTUNITY TO CONTINUE DISCUSSIONS WITH THE S. E. C. AND WILL CONTINUE TO WORK ON A RESOLUTION PRIOR TO ANY FURTHER ISSUANCE SAYS PETER CHERASIA A SENIOR MANAGING DIRECTOR AT BEAR STEARNS AMONG OTHER THINGS THE S. E. C. INQUIRY AIMS TO DETERMINE WHETHER UNDERWRITERS SHOULD PROVIDE BUYERS WITH MORE INFORMATION ABOUT THE TYPES OF HARD TO ANALYZE C. M. O.S THAT BACK KITCHEN SINKER TRUSTS THE AGENCY ALSO QUESTIONS WHETHER THE KITCHEN SINKERS' TRIPLE A RATINGS WHICH MEASURE THE LIKELIHOOD OF INVESTORS' RECEIVING SPECIFIED AMOUNTS OF CASH FLOW NOT THE RISKINESS OF THE BONDS MIGHT BE MISLEADING WHILE THE S. E. C. HAS RAISED CONCERNS ABOUT THE APPROPRIATENESS OF KITCHEN SINKERS FOR SMALL INVESTORS UNDERWRITERS SAY THAT'S A MOOT POINT SINCE THESE SECURITIES HAVEN'T BEEN SOLD TO INDIVIDUALS THE S. E. C. WON'T COMMENT ABOUT ITS MEETINGS WITH UNDERWRITERS AND RATING AGENCIES BUT PEOPLE ON WALL STREET FAMILIAR WITH THE DISCUSSIONS SAY THE AGENCY'S INTEREST MAY GO BEYOND KITCHEN SINKERS IN THE COURSE OF A MEETING TWO WEEKS AGO BETWEEN S. E. C. OFFICIALS AND REPRESENTATIVES FROM FITCH INVESTORS SERVICE A NEW YORK RATING AGENCY S. E. C. OFFICIALS ALSO QUESTIONED THE APPLICATION OF A TRIPLE A RATING TO SECURITIES BACKED BY WHOLE LOANS OR MORTGAGES ON COMMERCIAL REAL ESTATE AND OTHER BIG PROPERTIES SENIOR S. E. C. OFFICIALS FROM THE DIVISIONS OF MARKET REGULATION AND CORPORATE FINANCE FIRST BEGAN MEETING WITH REPRESENTATIVES FROM WALL STREET FIRMS IN NOVEMBER AFTER REPORTS IN THIS NEWSPAPER RAISED DOUBTS ABOUT INVESTORS' ABILITY TO ANALYZE THE COMPLEX SECURITIES REPRESENTATIVE HENRY B. GONZALEZ D. TEXAS CHAIRMAN OF THE HOUSE BANKING FINANCE AND URBAN AFFAIRS COMMITTEE HAS ECHOED THOSE CONCERNS I AM AFRAID THAT THESE SECURITIES LIKE OTHER DERIVATIVES PILE RISK ON TOP OF RISK HE SAYS CURRENTLY THE S. E. C. DOESN'T REQUIRE UNDERWRITERS OF KITCHEN SINKER TRUSTS TO DISCLOSE WHERE THE RECYCLED C. M. O.S CAME FROM WHAT THEIR CHARACTERISTICS ARE WHO ORIGINALLY UNDERWROTE THEM HOW THE C. M. O.S WERE PRICED WHEN CONTRIBUTED TO THE TRUST OR THE VALUATION METHOD USED ONE MONEY MANAGER WITH TWO BILLION DOLLARS INVESTED IN MORTGAGE BACKED SECURITIES SAYS IT WOULD TAKE HIM SEVERAL HOURS ON A HIGH SPEED COMPUTER TO FIGURE OUT HOW THE KITCHEN SINKERS WOULD REACT TO CHANGES IN INTEREST RATES DESPITE THEIR COMPLEXITIES KITCHEN SINKERS ENJOY MORE LENIENT DISCLOSURE REQUIREMENTS THAN NORMAL BOND OFFERINGS OR PUBLIC SALES OF STOCK THAT'S BECAUSE THE C. M. O.S THAT BACK THEM ARE DERIVED FROM MORTGAGES THAT ARE GUARANTEED BY GOVERNMENT SPONSORED AGENCIES SUCH AS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATION AS A RESULT KITCHEN SINKERS ARE DEEMED TO BE GOVERNMENT SECURITIES WHICH EXEMPTS THEM FROM DISCLOSURE RULES OF THE SECURITIES ACT OF NINETEEN THIRTY THREE THE FACT THAT MANY KITCHEN SINKERS HAVE BEEN BLESSED WITH A TRIPLE A RATING ALSO WORRIES REGULATORS SENIOR S. E. C. OFFICIALS SAY INVESTORS MAY MISUNDERSTAND WHAT THAT RATING REPRESENTS SINCE THE TRIPLE A RATING ON THESE BONDS HAS NOTHING TO DO WITH THE SAFETY OF THESE INVESTMENTS BUT ONLY WITH THE LIKELIHOOD THAT INVESTORS WILL RECEIVE THEIR CASH FLOWS AS PROMISED AS LONG AS THIRTY YEARS FROM NOW THE S. E. C. WANTS TO KNOW HOW WE DO OUR ANALYSIS OF CASH FLOW SAYS STEPHEN JOYNT EXECUTIVE VICE PRESIDENT OF MORTGAGE BACKED SECURITIES AT FITCH QUOTE WE ARE TRYING TO BE RESPONSIVE TO THEM QUOTE THE QUESTION IS WHETHER A RATING CAN BE LIMITED AS NARROWLY AS THESE RATINGS ARE SAYS ANDREW JONES AN ANALYST AT DUFF AND PHELPS WHICH HAS RATED MANY KITCHEN SINKERS CERTAINLY NONE OF THAT SEEMS TO MATTER SO FAR TO INVESTORS WHO REMAIN DAZZLED BY THEIR FAT YIELDS OF TWO PERCENTAGE POINTS OVER SHORT TERM FLOATING RATE NOTES COMPUTER PRODUCTS INCORPORATED SAID JOHN N. LEMASTERS CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL RESIGN THOSE POSTS AS SOON AS A SUCCESSOR IS FOUND MR. LEMASTERS SIXTY YEARS OLD SAID HE AND OTHER DIRECTORS DECIDED TO SEARCH FOR A NEW C. E. O. FOLLOWING THE RESIGNATION OF RON RITCHIE CHIEF OPERATING OFFICER IN JANUARY MR. RITCHIE'S RESIGNATION DERAILED THE SUCCESSION PLANS WHICH CALLED FOR MR. RITCHIE TO BECOME C. E. O. IN NINETEEN NINETY FIVE MR. LEMASTERS WILL REMAIN A DIRECTOR AND CONSULTANT TO THE COMPANY THE ELECTRONICS CONCERN ALSO REPORTED A FOURTH QUARTER NET LOSS OF ONE POINT ONE MILLION DOLLARS OR SIX CENTS A SHARE REFLECTING A THREE MILLION DOLLAR RESTRUCTURING CHARGE IN THE YEAR AGO QUARTER THE COMPANY POSTED NET INCOME OF ONE POINT SEVEN MILLION DOLLARS OR EIGHT CENTS A SHARE SALES ROSE FOURTEEN PERCENT TO THIRTY THREE POINT NINE MILLION DOLLARS FROM TWENTY NINE POINT NINE MILLION DOLLARS IN NINETEEN NINETY TWO MR. LEMASTERS SAID THE RESTRUCTURING WILL REDUCE PLANT CAPACITY AND ELIMINATE ABOUT FIVE PERCENT OF THE COMPANY'S ONE THOUSAND FIVE HUNDRED JOBS IN NASDAQ STOCK MARKET TRADING COMPUTER PRODUCTS SHARES CLOSED AT TWO POINT FOUR THREE SEVEN FIVE DOLLARS UP TWELVE POINT FIVE CENTS OR FIVE POINT FOUR PERCENT PRESIDENT CLINTON NOMINATED BOSTON LAWYER DEVAL PATRICK AS ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS THE POST FOR CHIEF CIVIL RIGHTS ENFORCER HAS BEEN EMPTY SINCE MR. CLINTON TOOK OFFICE MR. PATRICK THIRTY SEVEN YEARS OLD IS A PARTNER IN THE FIRM OF HILL AND BARLOW WHERE HE HAS A CIVIL AND CORPORATE PRACTICE HE ALSO IS INVOLVED IN A NUMBER OF PRO BONO CIVILRIGHTS CASES MR. PATRICK GREW UP IN A POOR BLACK NEIGHBORHOOD ON CHICAGO'S SOUTH SIDE WHERE HIS FAMILY RECEIVED WELFARE FOR A TIME HE ATTENDED MILTON ACADEMY PREPARATORY SCHOOL IN MASSACHUSETTS HARVARD COLLEGE AND HARVARD LAW SCHOOL HE SPENT A YEAR WORKING AND TRAVELING IN THE SUDAN AND NIGERIA AND WAS A STAFF LAWYER WITH THE N. DOUBLE A. C. P. LEGAL DEFENSE AND EDUCATIONAL FUND MR. PATRICK IS THE THIRD PERSON PUT FORWARD FOR THE JOB THE NOMINATION OF LANI GUINIER A UNIVERSITY OF PENNSYLVANIA LAW PROFESSOR WAS WITHDRAWN BECAUSE OF CONTROVERSY SURROUNDING HER WRITINGS AND JOHN PAYTON DISTRICT OF COLUMBIA CORPORATION COUNSEL WITHDREW HIS NAME AFTER HE DIDN'T GET SUPPORT FROM MEMBERS OF THE CONGRESSIONAL BLACK CAUCUS MR. PATRICK'S NOMINATION QUICKLY DREW FIRE FROM THE CONSERVATIVE LEADER WHO LED THE ATTACK AGAINST MS. GUINIER CLINT BOLICK VICE PRESIDENT OF THE INSTITUTE OF JUSTICE SAID MR. PATRICK FAVORS RACIAL QUOTAS AN AFFIRMATIVE ACTION TOOL MR. PATRICK SPECIFICALLY HAS SAID HE OPPOSES MR. CLINTON IN ANNOUNCING THE NOMINATION STRUCK BACK AT MR. PATRICK'S OPPONENTS SAYING QUOTE THEY DON'T GIVE A RIP ABOUT CIVIL RIGHTS QUOTE WORDS OF PRAISE ALSO CAME QUICKLY REPRESENTATIVE JOHN CONYERS A MICHIGAN DEMOCRAT WHO IS DEAN OF THE CONGRESSIONAL BLACK CAUCUS SAID MR. PATRICK'S COMBINATION OF CREDENTIALS AND LIFE EXPERIENCE WILL BE A BOON TO THE DEPARTMENT ON THE TABLE OF ALL THE HINTS OF FLEXIBILITY ON HEALTH CARE SEEPING OUT OF THE WHITE HOUSE THIS WEEK THE MOST SIGNIFICANT WAS ONE OFFERED BY PRESIDENT CLINTON HIMSELF AT A PRIVATE WHITE HOUSE MEETING IN A TALK WITH GOVERNORS MR. CLINTON HINTED TO REPUBLICAN CARROLL CAMPBELL OF SOUTH CAROLINA THAT HE IS WILLING TO COMPROMISE ON HIS PLAN'S MANDATORY HEALTH CARE QUOTE ALLIANCES QUOTE ALLIANCES ARE THE NEW AGENCIES THE CLINTON PLAN WOULD SET UP TO MARKET HEALTH INSURANCE TO PEOPLE AND COMPANIES THROUGHOUT A STATE OR REGION THE PURPOSE OF ALLIANCES OF COURSE IS TO PUSH DOWN INSURANCE COSTS BY POOLING THE BUYING POWER OF HEALTH CARE CONSUMERS BUT TO MANY CONSUMERS ALLIANCES ARE STARTING TO LOOK LIKE A GOOD IDEA EMBELLISHED TOO FAR IN SOME RESPECTS ALLIANCES HAVE EMERGED AS AN ACHILLES HEEL OF THE CLINTON PLAN AN ELEMENT THAT FEEDS THE PUBLIC'S VAGUE FEARS THAT THAT PLAN WOULD SIMPLY BE TOO BUREAUCRATIC AND IMPERSONAL TO CRITICS OF THE CLINTON PLAN WHOSE REAL OBJECTIONS ACTUALLY LIE ELSEWHERE ALLIANCES HAVE BECOME A DEVICE FOR UNDERMINING PUBLIC CONFIDENCE SO AS GOVERNOR CAMPBELL AND OTHER GOVERNORS GATHERED IN WASHINGTON FOR THEIR ANNUAL WINTER MEETING AGREE THE PRESIDENT'S WILLINGNESS TO COMPROMISE IS AN IMPORTANT STEP DOWN THE MURKY PATH TOWARD A BIPARTISAN HEALTH CARE PLAN MOST PUBLIC ATTENTION HAS FOCUSED ON THE PIECES OF HEALTH CARE REFORM ON WHICH PRESIDENT CLINTON ISN'T COMPROMISING HIS DEMAND FOR UNIVERSAL COVERAGE FOR ALL AMERICANS AND HIS CALL FOR EMPLOYERS TO PICK UP EIGHTY PERCENT OF WORKERS' INSURANCE COSTS IN SHEER POLITICAL TERMS THOSE ARE BIG STUMBLING BLOCKS WITH REPUBLICANS AND CONSERVTIVE DEMOCRATS BUT IN PUBLIC OPINION TERMS MR. CLINTON IS ON FAIRLY FIRM GROUND ON THOSE FUNDAMENTAL ISSUES IN A RECENT WALL STREET JOURNAL SLASH N. B. C. NEWS POLL SEVENTY EIGHT PERCENT OF THOSE SURVEYED SUPPORTED THE CALL FOR UNIVERSAL COVERAGE AND SIXTY FIVE PERCENT SUPPORTED A MANDATE THAT BUSINESSES PAY AT LEAST EIGHTY PERCENT OF EMPLOYEES' COST WITH GOVERNMENT AID TO SUBSIDIZE SMALL BUSINESSES YET OVERALL PUBLIC SUPPORT FOR THE CLINTON PLAN HAS BEEN SLIPPING THAT SEEMS TO BE HAPPENING BECAUSE OF UNDERLYING FEARS THAT THE PLAN WOULD JUST CREATE NEW HEALTH BUREAUCRACIES IN THE NAME OF CHOPPING DOWN OLD ONES ALLIANCES LIE AT THE HEART OF SOME OF THOSE FEARS UNDER THE CLINTON PLAN THE NEW REGIONAL ALLIANCES WOULD BE SET UP EITHER AS NONPROFIT ORGANIZATIONS OR STATE AGENCIES THEY WOULD BE RUN BY BOARDS OF DIRECTORS INCLUDING CONSUMERS AND EMPLOYERS ALLIANCES WOULD FIRST CONTRACT WITH INSURANCE COMPANIES AND HEALTH PLANS WILLING TO PROVIDE A STANDARD PACKAGE OF HEALTH BENEFITS AND THEN LET CONSUMERS PICK FROM A MENU OF THOSE QUALIFYING HEALTH PLANS SO FAR SO GOOD BUT THE CLINTON PLAN GOES FURTHER IT WOULD REQUIRE COMPANIES WITH FEWER THAN FIVE THOUSAND EMPLOYEES TO GET THEIR INSURANCE THROUGH ALLIANCES ALLIANCES WOULD HAVE THE POWER TO APPROVE MARKETING MATERIALS USED BY HEALTH PLANS AND THEY COULD EXCLUDE HEALTH PLANS THAT ARE DEEMED TOO EXPENSIVE THEY WOULD SET A SCHEDULE FOR PAYMENTS TO BE MADE UNDER FEE FOR SERVICE PLANS IN WHICH PATIENTS USE THEIR INSURANCE BENEFITS TO DIRECTLY PAY ANY HEALTH CARE PROVIDER AND IF TOO MANY CONSUMERS WANT TO PARTICIPATE IN A PARTICULAR HEALTH PLAN THE ALLIANCE COULD RANDOMLY SELECT WHO GET SPOTS CLINTONITES HAVE LONG VIEWED ALLIANCES AS A WAY TO GIVE THE AVERAGE PERSON A SENSE OF POWER AND LOCAL CONTROL BUT CELINDA LAKE A DEMOCRATIC POLLSTER WHO HAS DONE EXTENSIVE POLLS AND FOCUS GROUP DISCUSSIONS ABOUT HEALTH CARE SAYS THE ALLIANCE SYSTEM FREQUENTLY AROUSES MISGIVINGS AMONG CONSUMERS THEY ARE VERY CONCERNED ABOUT IT BEING BUREAUCRATIC SHE SAYS THEY THINK THERE'S AN INTERMEDIARY NOW BETWEEN THEM AND THEIR HEALTH CARE PROVIDERS AND THEY WANT TO GET RID OF THAT LAYER AND RATHER THAN REASSURE AMERICANS SHE SAYS THE CONCEPT OF A NETWORK OF VARIOUS STATE AND REGIONAL ALLIANCES OFTEN RAISES FEARS OF A PATCHWORK HEALTH CARE SYSTEM IN WHICH PEOPLE WON'T BE SURE WHAT HAPPENS WHEN THEY MOVE FROM ONE STATE TO THE NEXT CONSUMERS DO LIKE THE IDEA OF GIVING SMALL BUSINESSES AND INDIVIDUALS MORE BUYING CLOUT BY HELPING THEM TO FORM INSURANCE PURCHASING COOPERATIVES MS. LAKE SAYS SO SHE SAYS PARING THE ALLIANCE CONCEPT BACK DOWN TO A SIMPLER VERSION WOULD BE APPEALING WHAT THEY NEED TO DO IN AUTOMOTIVE TERMS IS STRIP AWAY THE FINS ADDS PETER HART A DEMOCRAT WHO CONDUCTS THE JOURNAL SLASH N. B. C. POLL THE WHITE HOUSE SEEMS TO BE MOVING IN THAT DIRECTION TREASURY SECRETARY LLOYD BENTSEN SAID A FEW DAYS AGO THAT SOME COMPANIES WITH FEWER THAN FIVE THOUSAND EMPLOYEES MAY BE EXEMPTED FROM THE ALLIANCES AND THE MESSAGE FROM MR. CLINTON THIS WEEK WAS THAT THE ALLIANCE ISSUE IS ON THE TABLE FOR DISCUSSION SAYS VERMONT DEMOCRATIC GOVERNOR HOWARD DEAN WHO WAS INVOLVED IN THE WHITE HOUSE DISCUSSION THAT HE NOTED IS A VERY BIG THING PARALLEL PETROLEUM CORPORATION SAID THAT ITS NINETEEN NINETY THREE VOLUME OF PROVED OIL AND GAS RESERVES INCREASED SIXTEEN PERCENT TOTAL PROVED RESERVES ROSE TO FOUR POINT EIGHT MILLION EQUIVALENT BARRELS OF OIL FROM FOUR POINT ONE FIVE MILLION AT YEAR END NINETEEN NINETY TWO PROVED OIL RESERVES INCREASED TWENTY FIVE PERCENT TO ONE MILLION SIX HUNDRED EIGHTEEN THOUSAND BARRELS AT YEAR END FROM ONE MILLION TWO HUNDRED NINETY SIX THOUSAND FROM A YEAR AGO PROVED NATURAL GAS RESERVES JUMPED TWELVE PERCENT TO NINETEEN POINT ONE BILLION CUBIC FEET FROM SEVENTEEN POINT ONE BILLION CUBIC FEET THE PRESENT VALUE OF THE MIDLAND TEXAS COMPANY'S TOTAL PROVED RESERVES IS ESTIMATED AT TWENTY ONE POINT ONE MILLION DOLLARS UP TWO PERCENT FROM TWENTY POINT EIGHT MILLION DOLLARS THE VALUE OF THE PROVED RESERVES LAST YEAR WAS BASED ON AN OIL PRICE OF THIRTEEN DOLLARS AND TWENTY FIVE CENTS A BARREL DOWN TWENTY NINE PERCENT FROM EIGHTEEN DOLLARS AND FIFTY CENTS A BARREL A YEAR EARLIER THE NATURAL GAS PRICE BASIS AT YEAR END NINETEEN NINETY THREE WAS ONE DOLLAR AND EIGHTY FIVE CENTS PER THOUSAND CUBIC FEET DOWN THIRTEEN PERCENT FROM TWO DOLLARS AND TWELVE CENTS A YEAR AGO DYNAMICS RESEARCH CORPORATION BATTERED BY LOSING A CONTRACT EXPECTS TO REPORT NET INCOME FELL EIGHTY PERCENT ON A FIVE PERCENT DROP IN REVENUE FOR ITS FISCAL FOURTH QUARTER ENDED DECEMBER TWENTY FIFTH ALBERT RAND PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE BOSTON BASED PROVIDER OF COMPUTERIZED SYSTEMS FOR THE MILITARY EXPECTS TO REPORT NET FOR THE PERIOD FELL TO ABOUT THREE HUNDRED SIXTY FIVE THOUSAND DOLLARS OR SEVEN CENTS A SHARE FROM ONE POINT EIGHT MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE REVENUE FELL TO THIRTY ONE POINT SEVEN MILLION DOLLARS FROM THIRTY THREE POINT FOUR MILLION DOLLARS HE SAID AS PREVIOUSLY REPORTED DYNAMICS RESEARCH LOST A FIFTEEN MILLION DOLLAR A YEAR CONTRACT TO MANAGE ENGINEERING SPECIFICATIONS FOR THE HANSCOM AIR FORCE BASE IN LEXINGTON MASSACHUSETTS MR. RAND SAID THAT PIECES OF THE CONTRACT WERE WON BY SEVEN OTHER COMPANIES MANY OF WHICH WON THEM UNDER SMALL BUSINESS OR MINORITY SET ASIDE PRORGAMS MOST OF THOSE COMPANIES HAVE ENDED UP SUBCONTRACTING WITH DYNAMICS TO CONTINUE DOING THE WORK BUT AT A LOWER PRICE DESPITE THE WEAK QUARTER MR. RAND HE IS QUOTE UPBEAT QUOTE ABOUT THE CURRENT YEAR BUT DIDN'T MAKE SPECIFIC PROJECTIONS I WAS IMPRESSED BY YOUR ARTICLE ON EDMUND PANKAU IN THE JANUARY TWELFTH EDITION QUOTE PANKAU P. I. LESS THAN MEETS THE EYE QUOTE MY CLOSE FRIEND AND CONFIDANT TOM SHERMAN SENIOR OWNER OF THE LAKE CHARLES AMERICAN PRESS AND OTHER NEWSPAPERS ONCE SHARED WITH ME HIS THOUGHTS ON THE STATE OF INVESTIGATIVE REPORTING HE SAID IN SUMMARY THAT IT WAS A LOST ART THE TIME WAS DURING THE NINETEEN SIXTIES FOR ME THE ARTICLE ON MR. PANKAU CLEARLY ESTABLISHES THAT YOU BOTH KNOW AND PRACTICE THE ART I COMMEND YOU FOR IT TOM WOULD TOO IF HE WERE STILL ALIVE MOODY'S INVESTORS SERVICE INCORPORATED LOWERED THE DEBT RATING ON SENIOR NOTES OF ROWAN COMPANIES REFLECTING ITS VIEW THAT THE COMPANY'S INCREASED EXPOSURE TO THE DEPRESSED DRILLING INDUSTRY WILL RESULT IN CONTINUED LOSSES THE RATING AGENCY LOWERED THE DEBT RATING ON THE COMPANY'S TWO HUNDRED MILLION DOLLARS OF ELEVEN POINT EIGHT SEVEN FIVE PERCENT SENIOR UNSECURED NOTES TO B. A THREE FROM B. A TWO MOODY'S SAID THAT IT EXPECTS ROWAN'S MARATHON LETOURNEAU ACQUISITION WHICH IS TO CLOSE DURING THE CURRENT QUARTER WILL INCREASE ROWAN'S QUOTE ALREADY CONSIDERABLE EXPOSURE QUOTE TO QUOTE EXTREMELY VOLATILE AND UNPREDICTABLE QUOTE EXPLORATION AND DEVELOPMENT ACTIVITY ROWAN A HOUSTON OFFSHORE CONTRACT DRILLING AND HELICOPTER SERVICE PROVIDER LAST YEAR AGREED TO PURCHASE THE MARATHON LETOURNEAU COMPANY UNIT OF GENERAL CABLE CORPORATION FOR ABOUT FIFTY MILLION DOLLARS THE UNIT PRODUCES HEAVY EQUIPMENT FOR THE MINING AND TIMBER INDUSTRIES AND BUILDS DRILLING RIGS MOODY'S SAID IN A STATEMENT THAT THE NEW RATING FACTORS IN AN EXPECTATION OF SOME EARNINGS IMPROVEMENT FROM THE CONTINUING STRENGTH OF DOMESTIC GAS PRICES AS WELL AS ROWAN'S CONSIDERABLE LIQUIDITY FOR ITS PART ROWAN SAID IN A STATEMENT THAT WHILE OIL AND GAS PRICES ARE STILL UNPREDICTABLE IT BELIEVES ITS NINETEEN NINETY FOUR FIRST QUARTER WILL BE MUCH BETTER THAN THE NINETEEN NINETY THREE FIRST QUARTER'S NET LOSS OF THIRTEEN POINT FIVE MILLION DOLLARS THE COMPANY SAID ITS CASH AND RECEIVABLES AT YEAR END NINETEEN NINETY THREE EXCEEDED TWO HUNDRED MILLION DOLLARS UP FROM EIGHTY FOUR MILLION DOLLARS A YEAR EARLIER AS FOR MARATHON LETOURNEAU THE COMPANY WAS SLIGHTLY PROFITABLE LAST YEAR AND APPEARS IT WILL BE PROFITABLE IN THE CURRENT QUARTER SAID C. R. PALMER ROWAN'S CHAIRMAN AND CHIEF EXECUTIVE I FORESEE NO CIRCUMSTANCE THAT WILL ALTER ROWAN'S ABILITY OR COMMITMENT TO CUSTOMERS EMPLOYEES SUPPLIERS LENDERS OR SHAREHOLDERS YOU PUBLISHED STUART CREQUE'S EDITORIAL PAGE PIECE QUOTE WE MUST RESPECT POLICE OFFICERS QUOTE ON DECEMBER TWENTY NINTH IT WAS REPRINTED IN THE OAKLAND TRIBUNE ON JANUARY TWELFTH WITHIN A WEEK THESE HEADLINES APPEARED IN TWO BAY AREA NEWSPAPERS OFFICERS FACE DISCIPLINE IN INJURY OF TWO LATINOS COPS KILL MAN IN SEARCH OF HOUSE AND COP TO STAND TRIAL IN ASSAULT CASE YET MR. CREQUE CANNOT GRASP WHY THERE EXISTS A SEGMENT OF POPULATION THAT HAS NO CONCEPT OF THE RULE OF LAW OR SOCIAL ORDER IT REGARDS THE POLICE AS AN IMPLACABLE ENEMY PERHAPS A PLACE TO START LOOKING FOR ANSWERS LIES IN THE FACTS OF THE CASE MR. CREQUE DISCUSSES THE SO CALLED PIT BULL INCIDENT IN WHICH MY SON LUKE MY HUSBAND RAPHAEL GRINAGE AND OFFICER WILLIAM GRIJALVA AND OUR DOG WERE ALL KILLED IT WOULD BE INTERESTING TO KNOW THE SOURCE OF THE INFORMATION HE CITES WITH AUTHORITY FOR IT IS CLEAR HE DID NOT INTERVIEW THE FAMILY OR THE NEIGHBORS MR. CREQUE CLAIMS THE POLICE DEPARTMENT'S ANIMAL CONTROL SECTION HAD ATTEMPTED TO PICK UP CHEWY OUR DOG ON THE DAY PRIOR TO THE SHOOTING THIS IS NOT TRUE ANIMAL CONTROL CALLED LUKE TWO DAYS BEFORE THE TRAGEDY TO DISCUSS THE VALIDITY OF THE DOG'S RABIES SHOTS BUT DID NOT COME TO THE HOUSE BEFORE DECEMBER FIFTEENTH THE ARTICLE SAYS CHEWY HAD BITTEN A NEIGHBOR THE DAY BEFORE THIS IS NOT TRUE CHEWY HAD BITTEN A TRESPASSER WHO HAD ENTERED THE HOUSE FIVE DAYS EARLIER THE ARTICLE SAY CHEWY'S VACCINATION HAD EXPIRED THE SHOTS HAD BEEN GIVEN BY ANIMAL CONTROL IN OCTOBER NINETEEN NINETY ONE AND RABIES SHOTS ARE VALID FOR THREE YEARS ACCORDING TO THE A. S. P. C. A. THE REST OF THE FACTS RECITED BY MR. CREQUE CONTINUE TO REFLECT THE SELECTED EVENTS REPORTED BY THE POLICE SOME OF THE OMISSIONS INCLUDE THE FACT THAT EYEWITNESSES REPORT THAT LUKE WAS BEATEN TO THE GROUND BY AT LEAST TWO OFFICERS WITH BILLY CLUBS LUKE'S FIRST RESPONSE WAS WITH HIS FIST NOT WITH A GUN AND IT IS NOT CLEAR WHO WAS THE FIRST TO DRAW A WEAPON MR. CREQUE CONCLUDES THERE YOU HAVE IT THREE MEN KILLED SENSELESSLY HE MIGHT HAVE GONE FURTHER AND SPECULATED AS TO WHY IT HAPPENED AND WHO WAS IN A POSITION TO HAVE AVOIDED THIS TRAGIC ENDING TO A CIVIL DISPUTE OVER PAPERWORK WHEN PEOPLE LIKE MR. CREQUE START REALIZING THAT POLICE OFFICERS WILL BE RESPECTED WHEN THEY RESPECT THE CITIZENS THEY ARE EMPLOYED TO SERVE WE WILL BEGIN TO SEE SOME POSITIVE CHANGE IN THE OUTLOOK OF THAT QUOTE SEGMENT OF THE COMMUNITY THAT REGARDS THE POLICE AS AN IMPLACABLE ENEMY QUOTE COMMENTING THAT THE OAKLAND POLICE DEPARTMENT WAS ONCE NOTED FOR ITS EXCESSIVE VIGOR IN ENFORCING THE LAW MR. CREQUE CLAIMS THAT IN THE PAST TWENTY SIX YEARS THE CITY HAS BEEN SUCCESSFUL IN REFORMING THE POLICE DEPARTMENT IT IS OBVIOUS THAT HE HAS NO IDEA OF THE NUMBER OF FAMILIES WHOSE MEMBERS HAVE BEEN INSULTED PHYSICALLY ABUSED INJURED AND KILLED BY POLICE OFFICERS IN RECENT YEARS IF IT'S RESPECT WE MUST HAVE THEN LET IT BE RESPECT FOR JUSTICE FOR FAIRNESS AND FOR THOSE WHO SEEK TO ATTAIN IT THROUGH THEIR BEHAVIOR LET US NEVER RESPECT A UNIFORM AND A BADGE WHEN THOSE BECOME SYMBOLS OF ABUSIVE POWER LET US RESPECT POLICE OFFICERS WHEN THEY REPRESENT MEMBERS OF THE COMMUNITY PROTECT CITIZENS FROM DANGER AND PROMOTE PEACE IN OUR NEIGHBORHOODS YOUR RECENT ARTICLE ON ELECTRIC RATES QUOTE WHY THE INCREASE HOW DO WE COMPARE ANSWERING QUESTIONS ABOUT ELECTRIC RATES JANUARY TWELFTH REPORTED THAT UPSHUR RURAL ELECTRIC COOPERATIVE HAS THE STATE'S LOWEST RESIDENTIAL ELECTRIC RATES IN FACT I WOULD LIKE TO POINT OUT THAT THE CITY OF FREDERICKSBURG'S FOUR THOUSAND RESIDENTIAL ELECTRIC CUSTOMERS PAY LOWER RESIDENTIAL RATES THAN UPSHUR RURAL ELECTRIC COOPERATIVE CUSTOMERS OUR COMMERCIAL AND INDUSTRIAL ELECTRIC RATES AS WELL AS THE CITY'S WATER AND SEWER RATES ARE ALSO AMONG THE STATE'S LOWEST WITH FOUNDER SERGIO BOSCO AND STOCKBROKER RAFI KHAN IN THE FRONT SEAT A CABLE TELEVISION AND PROGRAMMING COMPANY CALLED FUTURE COMMUNICATIONS INCORPORATED TOOK A WILD RIDE ON THE STOCK MARKET LAST SUMMER PICKING UP TECHNO HUNGRY INVESTORS ALONG THE WAY THEY ALL SHOULD HAVE KNOWN BETTER THE COMPANY WHOSE STOCK LEAPT FROM ABOUT SEVEN DOLLARS AT THE START OF JUNE TO TWENTY SEVEN DOLLARS AND FIFTY CENTS IN LATE AUGUST AS MR. KHAN WAS SAYING IT WAS ON ITS WAY TO FORTY DOLLARS NOW IS BEING SUED FOR FRAUD BY THE SECURITIES AND EXCHANGE COMMISSION AND SEVERAL SHAREHOLDER GROUPS MILTON BERLE IS SUING TOO SAYING FUTURE VIOLATED HIS CONTRACT AS CELEBRITY SPOKESMAN PRICE WATERHOUSE IS DENYING FUTURE'S CONTENTION THAT PRICE WATERHOUSE AGREED TO BECOME FUTURE'S AUDITOR AND FUTURE HAS FILED FOR CHAPTER ELEVEN PROTECTION UNDER THE BANKRUPTCY LAW FUTURE CREATES TELEVISION PROGRAMMING AND SENDS IT BY SATELLITE TO STATIONS IN EXCHANGE FOR ADVERTISING TIME THAT FUTURE CAN SELL MR. BOSCO HAS ENVISIONED IT AS A T. V. NETWORK THAT WOULD GROW TO RIVAL THE MAJOR NETWORKS IN SIZE A QUOTE FIFTH ALTERNATIVE QUOTE FOR AMERICAN VIEWERS BUT CREATING T. V. NETWORKS ISN'T CHEAP FOX SPENT A REPORTED ONE HUNDRED FORTY MILLION DOLLARS LAUNCHING ONE AND FUTURE HAS NEVER REPORTED ANNUAL REVENUE OF MORE THAN SIX POINT SIX MILLION DOLLARS WORSE COURT RECORDS REVEAL FUTURE TO BE A FINANCIAL AND MANAGEMENT MORASS ALTHOUGH FUTURE ATTRACTED FUND MANAGERS AT SUCH INSTITUTIONS AS FIDELITY INVESTMENTS IN BOSTON PIONEERING MANAGEMENT CORPORATION OF BOSTON AND THE INVESCO FUNDS GROUP OF DENVER THE STOCK LAST FALL WAS DELISTED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS FOR INVESTORS TEMPTED BY THE GLAMOUR OF FASHIONABLE INDUSTRIES FUTURE'S STORY IS A VIVID REMINDER OF JUST HOW BADLY HOPES CAN OUTSTRIP REALITY ESPECIALLY WHEN BOOSTED BY HYPERBOLIC PRONOUNCEMENTS AND OBSCURED BY A CONVOLUTED CORPORATE STRUCTURE FUTURE GOT ITS START IN THE LATE NINETEEN SEVENTIES WHEN MR. BOSCO AN ELECTRONICS WHIZ WHO HAD FORMED SEVERAL SMALL FIRMS ON NEW YORK'S LONG ISLAND TO BUILD CABLE T. V. SYSTEMS WENT PUBLIC BY MERGING ONE OF HIS COMPANIES INTO A SHELL COMPANY A DECADE LATER HE MOVED THE FIRM INITIALLY CALLED FUTURESAT INDUSTRIES INCORPORATED TO DALLAS AND CHANGED ITS NAME TO FUTURE COMMUNICATIONS OVER THE YEARS MR. BOSCO HAS LEFT A TRAIL OF BITTER BUSINESS ASSOCIATES INVESTORS AND FORMER EMPLOYEES SOME OF WHOM DESCRIBE BEING BEGUILED BY HIS EVER SUNNY DISPOSITION SOME OF THESE ADVERSARIES SUED ACCOUNTING FOR DOZENS OF LAWSUITS FILED AGAINST MR. BOSCO THE COMPANY AND ITS UNITS IN FEDERAL STATE AND COUNTY COURTS IN DALLAS ALONE MR. BOSCO SEVERAL FORMER EMPLOYEES RECALL WAS KNOWN FOR SAYING WE DON'T PAY THEM UNTIL THEY'RE ON THE COURTHOUSE STEPS THROUGH HIS LAWYER HE DENIES SAYING THAT FUTURE HAD TROUBLE MEETING SOME OF THE STANDARDS OF PUBLIC COMPANIES IN THE NINETEEN EIGHTIES IT MISSED OR WAS LATE ON FOUR ANNUAL AND EIGHT QUARTERLY REPORTS AN S. E. C. INJUNCTION SHOWS IN NINETEEN EIGHTY EIGHT AND NINETEEN NINETY FUTURE DIDN'T ISSUE PROXY MATERIALS OR HOLD ANNUAL MEETINGS MR. BOSCO'S LAWYER SAYS IT HELD MEETINGS EVERY TWO YEARS TO SAVE MONEY FUTURE STILL HASN'T HELD AN ANNUAL MEETING FOR THE YEAR ENDED OCTOBER THIRTY FIRST NINETEEN NINETY TWO TO SAY NOTHING OF THE SUBSEQUENT FISCAL YEAR ONE POSTPONEMENT REASON STATED IN A PRESS RELEASE WAS THAT OFFICIALS WERE TOO BUSY FUTURE AND ITS WEB OF AFFILIATED FIRMS ARE RUN FOR THE MOST PART BY MR. BOSCO FAMILY MEMBERS AND FRIENDS MR. BOSCO'S WIFE JOSEPHINE WHO SUFFERS FROM EMPHYSEMA AND REQUIRES OXYGEN TWENTY FOUR HOURS A DAY IS DIRECTOR OF PROGRAMMING FOR MSTV INCORPORATED THE CORE PROPERTY HER NINE YEAR OLD GRANDSON STARS IN ONE PROGRAM MR. BOSCO'S SON RICHARD IS PRESIDENT OF COMMUNICATIONS INVESTMENT CORPORATION AN AFFILIATED COMPANY SERGIO BOSCO'S DAUGHTER LIA GORMAN ACTS AS HIS SECRETARY AND ADMINISTRATOR AND HOLDS A STAKE IN CLASSIC VIDEO THEATER INCORPORATED A FLORIDA COMPANY THAT SUPPLIES PROGRAMMING TO MSTV MR. BOSCO'S SON IN LAW DAVID GORMAN WAS NAMED PRESIDENT OF FUTURE IN LATE SEPTEMBER AS FOR HIS QUALIFICATIONS PAST PROXY STATEMENTS SAID THAT IN NINETEEN EIGHTY ONE TO NINETEEN EIGHTY THREE HE RAN A DALLAS CABLE T. V. PROGRAM DISTRIBUTION UNIT OF OAK INDUSTRIES INCORPORATED OF WALTHAM MASSACHUSETTS IN FACT FROM AUGUST NINETEEN EIGHTY ONE TO MARCH NINETEEN EIGHTY THREE MR. GORMAN WAS SERVING TIME IN A FLORIDA PRISON AFTER BEING ARRESTED IN AN ORLANDO PARKING LOT WITH ONE HUNDRED FORTY ONE POUNDS OF MARIJUANA MR. GORMAN AFTER FIRST SAYING THIS WAS SOMEONE ELSE WITH THE SAME NAME AND BIRTH DATE LATER ADMITTED SERVING PRISON TIME FOR THE CRIME AND SAID FUTURE'S PROXIES WERE ERRONEOUS BECAUSE HE HADN'T GIVEN IT CORRECT INFORMATION MR. GORMAN SAYS THAT WHEN HE BECAME FUTURE'S PRESIDENT HE REPLACED GARY DARTNALL WHOSE APPOINTMENT AS PRESIDENT AND A DIRECTOR FUTURE ANNOUNCED A YEAR AGO BUT MR. DARTNALL SAYS HE NEVER ASSUMED THE POST OF PRESIDENT HE SAYS HE WAS AN HONORARY PART TIME CONSULTANT FUTURE SAYS HE QUIT THE COMPANY LAST FALL AT FUTURE'S FORMER OFFICES IN WEST DALLAS MONEY OFTEN WAS SHUTTLED AMONG UNITS FOR INSTANCE ON NOVEMBER TWENTY THIRD AND TWENTY FOUR NINETEEN NINETY TWO JOHN DUPERTUIS NOW FUTURE'S CHIEF FINANCIAL OFFICER WROTE TWO CHECKS TOTALING EIGHTY SEVEN THOUSAND SIX HUNDRED DOLLARS TO MSTV OUT OF ONE UNIT'S BANK ACCOUNT ACCORDING TO BANKRUPTCY COURT DOCUMENTS FOR A COMPANY AFFILIATED WITH THE UNIT ON NOVEMBER TWENTY THIRD AN EIGHTY SEVEN THOUSAND SIX HUNDRED DOLLAR DEPOSIT WAS MADE INTO THAT ACCOUNT FROM ANOTHER UNIT I SAW THEM TAKE ALL THIS MONEY AND MOVE IT THROUGH ACCOUNTS TO BUILD UP THEIR REVENUES BALANCE SHEET AND PROFITS AND LOSSES SAYS PUTT FLEMING WHO WAS A CONSULTANT TO FUTURE FOR PART OF NINETEEN NINETY TWO MR. DUPERTUIS SAYS SHUTTLING MONEY ABOUT IS COMMON FOR COMPANIES WHOSE UNITS SHARE COMMON WORKING CAPITAL IT DOES NOT AFFECT THE INCOME STATEMENT HE SAYS SOME OF THIS ACTIVITY WAS DESIGNED TO COVER CASH SHORTAGES LIKE MANY GROWING COMPANIES MR. DUPERTUIS SAYS FUTURE HASN'T ALWAYS HAD ENOUGH CASH ON HAND THEIR NONSUFFICIENT CHECK CHARGES HAD TO BE ASTRONOMICAL SAYS SHELLEY MCBRIDE A SALESMAN WHO QUIT A YEAR AGO AFTER HE SAYS HE RECEIVED A SERIES OF BOUNCED CHECKS FOR WAGES AND BUSINESS EXPENSES FROM THE COMPANY IN ITS REPORT FOR THE FISCAL SECOND QUARTER ENDED APRIL THIRTIETH FUTURE SAID ITS OUTSTANDING CHECKS TOTALED ONE HUNDRED NINETY EIGHT THOUSAND FIVE HUNDRED TWENTY DOLLARS MORE THAN ITS BANK BALANCE MR. DUPERTUIS SAYS THAT PART OF THE REPORT WAS AN ERROR AS FOR FUTURE'S BOARD ARNE JENSEN A DIRECTOR UNTIL SEPTEMBER SAYS THAT AT BOARD MEETINGS HE WAS OFTEN THE ONLY ONE OF THREE OUTSIDE DIRECTORS IN ATTENDANCE MR. JENSEN A FORMER C. B. S. NEWS TECHNICAL SUPERVISOR ALSO SAYS HE WAS PLACED ON THE AUDIT COMMITTEE WITHOUT HIS KNOWLEDGE AND QUOTE NEVER EVEN ATTENDED A MEETING QUOTE OF IT MR. BOSCO DENIES THIS THROUGH HIS ATTORNEY MR. BOSCO WHO DECLINED TO BE INTERVIEWED HAS TEMPORARILY STEPPED ASIDE FROM THE COMPANY'S OPERATIONS DESPITE ALL THIS FUTURE'S STOCK GOT HOT LAST SUMMER IT WAS PLUGGED FOR MONTHS BY MARKET MAKER CHELSEA STREET SECURITIES INCORPORATED OF IRVING TEXAS AND LATER BY REYNOLDS KENDRICK STRATTON INCORPORATED OF BEVERLY HILLS CALIFORNIA WHICH ABSORBED SOME CHELSEA BROKERS AFTER CHELSEA CLOSED IN JUNE OFFERING UNWAVERING SUPPORT AT REYNOLDS KENDRICK WAS MR. KHAN THE BROKER SAW GREAT PROMISE IN FUTURE'S MSTV NETWORK WHICH DEALS MOSTLY WITH LOW POWER STATIONS HE TOLD INVESTORS THAT THE FEDERAL CABLE ACT OF NINETEEN NINETY TWO IN REQUIRING CABLE SYSTEMS TO CARRY SOME LOW POWER STATIONS' SIGNALS TRANSFORMS MSTV'S ONE HUNDRED PLUS LOCAL LOWER POWER T. V. STATION AFFILIATES WITH A LIMITED LOCAL AUDIENCE INTO A VIABLE ALTERNATIVE VIEWING NETWORK HE ENVISIONED A THREE YEAR BONANZA FUTURE'S OWN FORECASTS WERE NO LESS ROSY IN ONE S. E. C. FILING IT SAID MSTV HAD A POTENTIAL VIEWERSHIP OF MORE THAN FORTY TWO MILLION HOUSEHOLDS A HUGE FORTY NINE PERCENT OF THE U. S. MARKET AND ALREADY HAD ONE HUNDRED EIGHTEEN AFFILIATES DEFINED AS STATIONS THAT BROADCAST AT LEAST FOUR HOURS OF ITS PROGRAMMING DAILY BUT THIRTY ONE OF THE STATIONS LISTED AS AFFILIATES DON'T MEET THAT DEFINITION TWENTY THREE OF THEM IN FACT BROADCAST JUST ONE HOUR OF MSTV PROGRAMMING WEEKLY USUALLY BILLY BOB'S COUNTRY A COUNTRY MUSIC PROGRAM FILMED AT A FORT WORTH NIGHTCLUB MR. GORMAN CONTENDS THAT STATIONS THAT TAKE ANY PROGRAMMING ARE AFFILIATES THROUGH THE SUMMER FUTURE ITSELF ISSUED A SERIES OF ANNOUNCEMENTS A DEAL HAD BEEN MADE TO ACQUIRE TWO FILM LIBRARIES CONTAINING SEVEN HUNDRED COPYRIGHTED FILMS EARNINGS PER SHARE FOR THE THIRD QUARTER ENDING JULY THIRTY FIRST WOULD MORE THAN DOUBLE FROM THE TWENTY THREE CENTS REPORTED A YEAR EARLIER THEY CAME IN AT FORTY NINE CENTS HOWEVER AS MR. KHAN'S BULLISHNESS ON FUTURE INTENSIFIED AND THE STOCK TOOK OFF HIS EMPLOYER REYNOLDS KENDRICK WAS AGGRESSIVELY SELLING SHARES ON JUNE ELEVENTH WHEN FUTURE'S STOCK WAS AT SEVEN POINT THREE SEVEN FIVE DOLLARS THE BROKERAGE FIRM AND ITS RETAIL CLIENTS OWNED ONE MILLION ONE HUNDRED SEVENTY SIX THOUSAND TWO HUNDRED FIFTY FIVE SHARES ACCORDING TO AN AFFIDAVIT GIVEN BY MICHAEL J. CHIODO REYNOLDS KENDRICK'S VICE PRESIDENT FOR FINANCE IN A SUIT FILED IN A FEDERAL COURT IN NEW YORK CITY AGAINST THE FIRM AND MR. KHAN BY SHORT SELLERS IN SUBSEQUENT WEEKS FUTURE ANNOUNCED IT HAD OBTAINED A COMMITMENT LETTER FOR TWELVE POINT FIVE MILLION DOLLARS IN FINANCING FROM A WEST COAST FINANCE COMPANY SO IT COULD BUY SEVEN HUNDRED FILMS FEATURING SUCH STARS AS CHARLIE CHAPLIN BUSTER KEATON AND LAURENCE OLIVIER ON AUGUST SEVENTEENTH FUTURE ANNOUNCED IT HAD COMPLETED THE ACQUISITION THE NEXT DAY MR. KHAN RECOMMENDED AGGRESSIVE ACCUMULATION OF FUTURE SHARES HOWEVER THREE WEEKS LATER FUTURE FILED AN EIGHT K. REPORT WITH THE S. E. C. THAT DISCLOSED THAT THE FILM PURCHASE HADN'T BEEN COMPLETED MR. GORMAN SAYS CLOSING DOCUMENTS WERE SIGNED ON JULY TWENTY NINTH BUT THE FINANCING NEVER CAME THROUGH BY AUGUST TWENTY SEVENTH THE NUMBER OF FUTURE SHARES HELD BY REYNOLDS KENDRICK AND ITS RETAIL CLIENTS WAS DOWN SIXTY SEVEN PERCENT FROM JUNE TO THREE HUNDRED EIGHTY FIVE THOUSAND SEVEN HUNDRED TWENTY EIGHT SHARES THREE DAYS LATER ON AUGUST THIRTIETH THE STOCK PEAKED AT TWENTY SEVEN DOLLARS AND FIFTY CENTS ON AUGUST THIRTY FIRST N. A. S. D. HALTED TRADING QUESTIONING FUTURE'S QUALIFICATIONS FOR LISTING REYNOLDS KENDRICK'S CHAIRMAN WILLIAM STRATTON EXPLAINS THE STOCK SELLING AS PROFIT TAKING BY LONGTIME FUTURE SHAREHOLDERS AS FOR THE INSTITUTIONS THAT BOUGHT ON MR. KHAN'S RECOMMENDATIONS DURING THIS PERIOD THEY WERE QUOTE VERY SOPHISTICATED INVESTORS NOT DUPES FOR ANYBODY QUOTE MR. STRATTON SAYS SEVERAL INVESTMENT PROS WERE AMONG THE BELIEVERS DANIEL LEONARD MANAGER OF INVESCO STRATEGIC TECHNOLOGY FUND BOUGHT TWO THOUSAND SHARES FOR HIS PERSONAL PORTFOLIO AND ONE HUNDRED SIXTY THOUSAND FOR THE FUND BANKRUPTCYCOURT RECORDS SHOW WALTER DOWNEY A PORTFOLIO MANAGER AT FIDELITY WAS HIGH ON THE STOCK THROUGH LAST OCTOBER FIDELITY BOUGHT ONE HUNDRED FIVE THOUSAND SHARES PIONEERING MANAGEMENT BOUGHT ONE HUNDRED FORTY FIVE THOUSAND FUTURE SHARES BUT SKEPTICAL INVESTORS WERE SHORTING FUTURE THAT IS BETTING ON A DECLINE BY BORROWING THE STOCK AND SELLING IT STEPHEN CARLSON OF ASPEN CAPITAL IN DENVER SAID IN EARLY SEPTEMBER THAT HE SAW FUTURE AS A FRAUD OF MONUMENTAL PROPORTIONS ON SEPTEMBER THIRD FUTURE'S AUDITOR ALEGNANI AND COMPANY OF DALLAS RESIGNED FUTURE ANNOUNCED THAT PRICE WATERHOUSE WOULD BE ITS NEW AUDITOR BUT A LAWYER FOR PRICE WATERHOUSE TOLD THE S. E. C. ON OCTOBER FIRST THAT THE ACCOUNTING FIRM NEVER AGREED TO TAKE THE ACCOUNT WITH SHARES NOT TRADING PUBLICLY REYNOLDS KENDRICK TRIED TO FORCE SHORT SELLERS TO REPAY BORROWED STOCK AT A RATE OF THIRTY SIX DOLLARS A SHARE A PRICE IT SAID IT GOT BY CHECKING WITH ITS CUSTOMERS FIVE SHORT SELLERS SUED ALLEGING THAT MR. KHAN AND REYNOLDS KENDRICK HAD MANIPULATED FUTURE'S STOCK AND HAD ACCESS TO MATERIAL UNDISCLOSED INFORMATION CHARGES MR. KHAN AND REYNOLDS KENDRICK DENIED ONE SUIT HAS SINCE BEEN WITHDRAWN ONE DISMISSED AND THREE ORDERED INTO ARBITRATION ON OCTOBER FOURTEENTH THE N. A. S. D. DELISTED FUTURE ALLEGING THE DISSEMINATION OF ERRONEOUS AND MISLEADING INFORMATION AND THE WITHHOLDING OF MATERIAL INFORMATION MR. GORMAN FUTURE'S PRESIDENT CONTENDS FUTURE WAS A VICTIM OF A BRUISING STOCK MARKET DUEL BETWEEN INVESTORS AND SHORT SELLERS WHEN THE PRICE OF THE STOCK CONTINUED TO RISE THESE SHORT SELLERS STOOD TO LOSE SEVENTY FIVE MILLION DOLLARS TO EIGHTY FIVE MILLION DOLLARS HE SAYS AND DROVE THE PRICE DOWN THE S. E. C. IN SUING FUTURE AND MR. BOSCO IN FEDERAL COURT IN DALLAS ALLEGED DISSEMINATION OF MISLEADING INFORMATION AND FRAUDULENT INFLATION OF THE STOCK PRICE IT SEEKS MONETARY PENALTIES AND THE RETURN OF ANY ILLEGAL TRADING PROFITS MR. BOSCO MAY HAVE MADE THE AGENCY AND FUTURE ARE WORKING ON A POSSIBLE SETTLEMENT A LAWYER FOR THE S. E. C. SAYS IT SEEKS TO BAR MR. BOSCO FROM SERVING AS AN OFFICER OR DIRECTOR OF A PUBLIC COMPANY ON NOVEMBER NINTH FUTURE FILED FOR CHAPTER ELEVEN LISTING ASSETS OF TWENTY TWO POINT TWO MILLION DOLLARS AND LIABILITIES OF FIVE POINT THREE MILLION DOLLARS ABOUT HALF OF THEM IN CLAIMS FOR STOCK OPTIONS AND WAGES FROM MR. BOSCO HIS FAMILY AND COMPANY OFFICERS AND EMPLOYEES MR. GORMAN SAYS FUTURE FILED BECAUSE IT COULDN'T MEET FINANCIAL OBLIGATIONS AND WANTED TO CENTRALIZE THE LITIGATION IT FACES FUTURE HAS SUED PRICE WATERHOUSE IN U. S. BANKRUPTCY COURT IN DALLAS FOR BREACH OF CONTRACT PRICE WATERHOUSE CALLS THE SUIT NONSENSE WHAT THE FUTURE HOLDS FOR FUTURE IS UNCERTAIN MR. BERLE WOULD LIKE TO CONTINUE AS ITS CELEBRITY SPOKESMAN IF THE DISPUTE OVER HIS FIVE YEAR ONE POINT TWO FIVE MILLION DOLLAR CONTRACT CAN BE RESOLVED A BERLE LAWYER SAYS MR. JENSEN THE FORMER DIRECTOR SAYS HE IS TICKED OFF AT MR. BOSCO BUT STILL BELIEVES THE COMPANY IS SITTING ON A GOLD MINE MR. LEONARD AT INVESCO SAYS HIS FUND WILL HANG ONTO ITS FOUR PERCENT STAKE QUOTE I THINK THEY HAVE A VALUABLE FRANCHISE WITH ALL THOSE T. V. STATIONS AND BILLY BOB'S QUOTE HE SAYS HE EXPECTS FUTURE TO FILE A REORGANIZATION PLAN SOON FIDELITY'S MR. DOWNEY WHO SAID AS LATE AS OCTOBER THAT THE FUNDAMENTALS ARE PRETTY GOOD ON THIS COMPANY NOW DECLINES TO COMMENT MR. KHAN WHO HAS LEFT REYNOLDS KENDRICK AND NOW WORKS IN LOS ANGELES FOR DESERT MOUNTAIN SECURITIES OF PHOENIX REMAINS A BOOSTER I'VE SEEN NOTHING OF SUBSTANCE TO QUESTION THE CORE ASSETS THE CONTROVERSIAL BROKER SAYS HE WOULD LIKE TO SEE CURRENT MANAGEMENT OUSTED THAT WOULD CLEAN THE MUDDIED WATERS BETTER THAN ANYTHING ELSE BUT BISHOP CHEEN AN ANALYST AT PAUL KAGAN ASSOCIATES IN CARMEL CALIFORNIA SAYS THE IDEA OF BUILDING NETWORKS OUT OF LOW POWER STATIONS HAS BEEN TRIED AND HAS DIED MANY TIMES BEFORE FUTURE ISN'T A COMPANY MR. CHEEN TRACKS BUT HE SAYS THE CABLE ACT OF NINETEEN NINETY TWO MANDATES ONLY THAT LOW POWER STATIONS BE CARRIED ON CABLE SYSTEMS IN SPARSELY POPULATED AREAS WHERE THERE ISN'T A FULL POWER STATION AVAILABLE THE COMPANY IS STILL OUT THERE PEDDLING ITS VISION A CONVENTION LAST WEEK IN MIAMI BEACH OF THE NATIONAL ASSOCIATION OF TELEVISION PROGRAM EXECUTIVES HAD A BUSY MSTV BOOTH PASSERS BY COULD PICK UP A FEBRUARY PROGRAM SCHEDULE AND THE FIRST ISSUE COLLECTOR'S EDITION OF MAIN STREET MAGAZINE ALL ABOUT THE NASCENT NETWORK IT DESCRIBES MILTON BERLE AS CHAIRMAN OF THE NETWORK'S EXECUTIVE COMMITTEE AND MSTV AS A DIVISION OF FUTURE COMMUNICATIONS INCORPORATED TRADED OVER THE COUNTER ON THE NASDAQ SYSTEM UNDER THE STOCK SYMBOL F. C. M. I. SERGIO BOSCO CHAIRMAN AND C. E. O. OF FUTURE TEMPORARILY STEPPED ASIDE IN OCTOBER DAVID W. GORMAN PRESIDENT OF FUTURE ROBERT RIOS JUNIOR EXECUTIVE VICE PRESIDENT AND SECRETARY OF FUTURE RONALD I. PALLUTH ELECTRICAL TECHNICIAN AND CONSULTANT TO FUTURE ROBERT K. WILPITZ ENERGY CONSULTANT LUIS MIGUEL AGUILAR C. E. O. OF POR CABLE TELEVISION NACIONAL OF MEXICO GERALD BEESON BANK EXECUTIVE JOINED BOARD IN SEPTEMBER REPLACING ARNE JENSEN A FORMER C. B. S. NEWS TECHNICAL SUPERVISOR MARINE MIDLAND BANKS INCORPORATED SAID FOURTH QUARTER PROFIT JUMPED TWENTY SEVEN PERCENT HELPED BY WIDER PROFIT MARGINS BETWEEN BORROWING AND LENDING RATES AND A DROP IN THE COST OF BAD DEBTS THE BUFFALO N. Y. BANK WHICH HAS EIGHTEEN BILLION DOLLARS IN ASSETS IS OWNED BY H. S. B. C. HOLDINGS P. L. C. OF LONDON MARINE MIDLAND POSTED NET INCOME OF FORTY FIVE POINT FOUR MILLION DOLLARS COMPARED WITH YEAR EARLIER NET OF THIRTY FIVE POINT SEVEN MILLION DOLLARS FOR THE FULL YEAR THE BANK REPORTED NET INCOME OF ONE HUNDRED SEVENTY THREE POINT TWO MILLION DOLLARS UP FIFTY NINE PERCENT FROM NINETEEN NINETY TWO RESULTS OF ONE HUNDRED NINE POINT TWO MILLION DOLLARS MARINE REDUCED EXPENSES BY ELEVEN PERCENT LAST YEAR WHILE INCREASING THE SO CALLED NET INTEREST MARGIN BETWEEN BORROWING RATES AND YIELDS ON LOANS AND INVESTMENTS THE MARGIN WIDENED TO FOUR POINT NINE THREE PERCENTAGE POINTS IN THE FOURTH QUARTER FROM FOUR POINT THREE NINE PERCENTAGE POINTS IN THE FOURTH QUARTER OF NINETEEN NINETY TWO THE COMPANY DIDN'T SET ASIDE A PROVISION FOR BAD DEBTS IN THE QUARTER IN THE YEAR EARLIER PERIOD THE PROVISION WAS THREE POINT FOUR MILLION DOLLARS FOR THE YEAR HOWEVER THE PROVISION CLIMBED TO ONE HUNDRED FIFTEEN MILLION DOLLARS FROM SEVENTY THREE POINT TWO MILLION DOLLARS IN NINETEEN NINETY TWO MICHAEL BAKER CORPORATION SAID ITS INTELCOM SUPPORT SERVICES INCORPORATED UNIT WAS AWARDED A CONTRACT BY THE U. S. NAVY TO PROVIDE BASE OPERATIONS SUPPORT SERVICES AT SEVERAL SITES IN HAWAII THE COMPANY SAID THE CONTRACT WHICH IS VALUED AT EIGHTY EIGHT MILLION DOLLARS HAS A BASE YEAR AND FOUR OPTION YEARS EACH YEAR OF THE CONTRACT IS VALUED AT ABOUT SEVENTEEN POINT SEVEN MILLION DOLLARS MICHAEL BAKER SAID UNDER THE CONTRACT INTELCOM WILL PROVIDE FACILITY AND UTILITY MAINTENANCE POWER PLANT OPERATION FIRE AND EMERGENCY SERVICES FACILITY ENGINEERING WASTE TREATMENT AND OTHER SERVICES RELATED TO TRANSPORTATION FOOD SUPPLIES FUELS AND SECURITY AT THE NAVY'S PACIFIC MISSILE RANGE FACILITY HAWAIIAN AREA BARKING SANDS WHICH HAS SITES ON THE ISLANDS OF KAUAI OAHU AND NIIHAU MICHAEL BAKER IS AN ENGINEERING CONSTRUCTION AND OPERATIONS AND MAINTENANCE SERVICES CONCERN IN PITTSBURGH NEARLY FIFTY YEARS AGO THE SPECTER OF LONG TERM MASS JOBLESSNESS UNNERVED AMERICA WORLD WAR TWO HAD ENDED IN TRIUMPH BUT THE OUTBREAK OF PEACE HELD ITS OWN PERILS THE GREAT DEPRESSION HAD BEEN SUBMERGED BY WAR RATHER THAN RESOLVED AND THERE SEEMED LITTLE REASON TO BELIEVE THAT NINETEEN FORTY EIGHT WOULD LOOK MUCH DIFFERENT FROM NINETEEN THIRTY EIGHT THE RETURNING G. I.S IT WAS THOUGHT MUST EITHER DISPLACE THE NEW WORKERS WHO HAD RUN THE WARTIME ECONOMY OR ELSE FACE UNEMPLOYMENT THEMSELVES AS THE DEPRESSION SET IN AGAIN IT SEEMED PERFECTLY PLAIN TO EXPERTS AND ORDINARY CITIZENS ALIKE THAT PROSPECTS WERE GRIM FOR A HUGE NUMBER OF AMERICAN WORKERS YET THIS PERIOD OF APPARENTLY WELLFOUNDED PESSIMISM GAVE WAY TO AN ERA OF RAPID GROWTH AND RISING LIVING STANDARDS THE TRANSITION WAS BY NO MEANS PAINLESS BUT THE MAIN STORY STILL IS THE ENORMOUS DISCREPANCY BETWEEN THE FEARFUL EXPECTATIONS OF THE POSTWAR YEARS AND THE POSITIVE TURN THAT HISTORY ACTUALLY TOOK THE EXPLANATION SEEMS SIMPLE AMERICANS AT THE TIME HAD A VIVID PICTURE OF IMPERILED OLD JOBS AND ONLY DIM INKLINGS OF BETTER JOBS TO COME THE ECONOMY'S CAPACITY TO CREATE NEW JOBS SIMPLY EXCEEDED THE MIND'S CAPACITY TO IMAGINE THEM WE MAY BE AT SUCH A JUNCTURE ONCE AGAIN GLOBAL COMPETITION DEFENSE DOWNSIZING CORPORATE RESTRUCTURING AND TECHNOLOGICAL CHANGE HAVE PUT MANY ESTABLISHED JOBS AT RISK EVEN INFORMED AMERICANS DESPAIR THAT THERE WILL EVER BE ENOUGH GOOD JOBS FOR NEW ENTRANTS TO THE LABOR FORCE OR FOR DISPLACED WORKERS ANXIOUS VOICES QUOTE WHERE ARE THE JOBS QUOTE TRAINING FOR WHAT GREET PROPOSALS TO REFORM EDUCATION AND DELIVER COMPETITIVE JOB SKILLS THE FUTURE TO BE SURE IS ULTIMATELY AS UNKNOWABLE IN NINETEEN NINETY FOUR AS IT WAS IN NINETEEN FORTY NINE BUT WE MAY BE ABLE TO USE THE LESSONS OF THE PAST AS WELL AS SOME MODEST ADVANCES IN ECONOMIC FORECASTING TO GAIN A DEGREE OF INSIGHT INTO THE JOBS OF THE FUTURE A CLEARER VIEW OF EMPLOYMENT PROSPECTS MAY PREVENT PESSIMISM FROM UNDERMINING CONCRETE MEASURES THAT WOULD MAKE THE GOOD JOBS OF THE FUTURE COME FASTER AND MORE SURELY FOR AMERICAN WORKERS ALL THE EVIDENCE POINTS TO STRONG LONG TERM GROWTH IN DEMAND FOR WORKERS WITH PROBLEM SOLVING SKILLS IN THE CLINTON ADMINISTRATION'S FIRST ELEVEN MONTHS THE ECONOMY CREATED MORE THAN ONE POINT SIX MILLION PRIVATE SECTOR JOBS OVER THE PAST YEAR NEARLY HALF OF THE EMPLOYMENT GROWTH HAS BEEN IN MANAGERIAL AND PROFESSIONAL JOBS THE BUREAU OF LABOR STATISTICS PREDICTS THAT THE NUMBER OF JOBS FOR TECHNICIANS WILL GROW THIRTY SEVEN PERCENT BETWEEN NINETEEN NINETY AND TWO THOUSAND FIVE YET THESE FAMILIAR CATEGORIES ARE ONLY APPROXIMATE LABELS FOR THE SKILL CENTERED WORK THAT IS EMERGING DISTINCTIONS ARE ERODING THE OLD HIERARCHY OF MID LEVEL MANAGERS LOWER LEVEL SUPERVISORS AND LOW SKILLED DRONES IS BLURRING INTO A BROAD CLASS OF WORKPLACE PROBLEM SOLVERS EXPERTISE AND AUTHORITY SEEP AWAY FROM THE FRONT OFFICE AND ARE DISPERSED THROUGHOUT THE PRODUCTIVE TEAM GOODS AND SERVICES ARE BECOMING LESS DISTINCT AS MORE AND MORE OF THE VALUE OF A PRODUCT IS EMBEDDED IN RELATED SERVICES DELIVERED BOTH BEFORE IT IS MANUFACTURED DESIGN PROGRAMMING PROCESS ENGINEERING AND AFTER IT IS SOLD TARGETED DISTRIBUTION CUSTOMIZED INSTALLATION TRAINING IN APPLICATIONS CREDENTIALISM IS BREAKING DOWN MANY OF THE FASTEST GROWING GOOD JOBS FACTORY TECHNICIAN DATA PROCESSOR DON'T REQUIRE A COLLEGE DEGREE BUT AS FORMAL CREDENTIALS BECOME LESS ESSENTIAL UP TO DATE SKILLS BECOME EVER MORE CRUCIAL EVEN IN JOBS WHERE THE UNSKILLED COULD FORMERLY THRIVE WORKERS WITHOUT SKILLS MEANWHILE FIND THEIR OPTIONS SHRINKING MORE THAN EVER BEFORE WHAT YOU EARN DEPENDS ON WHAT YOU LEARN AMERICANS WITHOUT TRAINING BEYOND HIGH SCHOOL HAVE SUFFERED A CONTINUING DECLINE IN EARNINGS OVER THE PAST FIFTEEN YEARS HIGH SCHOOL DROPOUTS HAVE BEEN HIT EVEN HARDER WITH COLLAPSING WAGE RATES AND RISING UNEMPLOYMENT LIKE COMPARABLE PERIODS BEFORE OUR CURRENT ERA OF RAPID ECONOMIC CHANGE OPENS NEW OPPORTUNITIES EVERY AMERICAN CAN DEVELOP THE SKILLS TO MAKE IT IN THE NEW ECONOMY THE WINNERS WON'T BE LIMITED TO COLLEGE GRADUATES A RECENT STUDY BY ECONOMISTS TOM KANE AND CECILIA ROUSE FOUND THAT EVERY YEAR OF POSTSECONDARY TRAINING IN UNIVERSITIES OR COMMUNITY COLLEGES AND WHETHER LEADING TO A DEGREE OR NOT BOOSTS ANNUAL EARNING POWER BY FIVE PERCENT TO TEN PERCENT THE GOOD JOBS OF THE FUTURE WON'T FIT NEATLY INTO OUR CURRENT CATEGORIES OF MANAGER SLASH MANAGED OR HIGH TECH SLASH LOW TECH EXAMPLES ABOUND THERE'S A NEW KIND OF DELIVERY TRUCK DRIVER EQUIPPED WITH A COMPUTER AND MODEM IN HER CAB SO SHE CAN TIME DELIVERIES TO EXACTLY WHEN CUSTOMERS NEED THEM AND THEN CUSTOM ASSEMBLE THE COMPLEX MACHINERY SHE'S DELIVERING SHE SHARES LITTLE MORE THAN A JOB TITLE WITH THE TRUCKER OF TEN YEARS AGO SHE'S A HIGH SKILLED SERVICE TECHNICIAN AND SHE'S MAKING GOOD MONEY THROUGHOUT THE ECONOMY FAMILIAR SOUNDING JOBS ARE BECOMING MORE DEMANDING AND MORE REWARDING AS JOB DESCRIPTIONS METAMORPHOSE IN NINETEEN NINETY JUST EIGHTEEN PERCENT OF THE FUNCTIONS IN A TYPICAL FORD AUTOMOBILE WERE COMPUTER CONTROLLED IN NINETEEN NINETY FOUR THE PROPORTION IS EIGHTY TWO PERCENT THIS TECHNOLOGICAL SHIFT HAS PROFOUND CONSEQUENCES FOR THE NUMBER AND NATURE OF GOOD JOBS AUTO MECHANICS SKILLED IN COMPUTER DIAGNOSTICS CAN COMMAND ANNUAL SALARIES RANGING FROM THIRTY THOUSAND DOLLARS TO SEVENTY FIVE THOUSAND DOLLARS IN THE SAME WAY ASSEMBLY WORK IS TRANSFORMED AS A NEW KIND OF FACTORY WORKER SITS BEHIND A COMPUTER PROGRAMMING AND REPROGRAMMING A ROBOT THAT DOES THE PULLING AND TWISTING THAT HUMAN BEINGS USED TO DO THE BAD NEWS ABOUT OUR CURRENT JUNCTURE IN ECONOMIC HISTORY IS REAL ENOUGH MORE AND MORE OLD JOBS ARE IMPERILED BY GLOBAL ECONOMIC INTEGRATION AND TECHNOLOGICAL CHANGE FEWER AND FEWER AMERICANS CAN COUNT ON HOLDING A SINGLE JOB THROUGHOUT THEIR CAREERS AND THE UNSKILLED FACE WORSENING ODDS FOR SUSTAINABLE PROSPERITY BUT THE GOOD NEWS IS EQUALLY REAL IF LESS OBVIOUS THE PAYOFF TO SKILLS IS SURGING TECHNOLOGICAL EVOLUTION IS SPAWNING A PROFUSION OF GOOD NEW JOBS INTEGRATED EXPANDING GLOBAL MARKETS CREATE MANY MORE OPPORTUNITIES THAN THEY CLOSE OFF AND THE SKILLS NEEDED FOR MANY OF THESE HIGH SKILL HIGH WAGE JOBS CAN BE LEARNED OFTEN THROUGH TWO YEAR ASSOCIATE'S DEGREES APPRENTICESHIP PROGRAMS AND ON THE JOB TRAINING HARD QUESTIONS REMAIN HOW DO WE ENSURE THAT THE RIGHT KINDS OF TRAINING ARE AVAILABLE AT THE RIGHT TIME AS AMERICANS STRUGGLE WITH WORK FORCE TRANSITIONS HOW DO WE BUFFER THE SHOCK OF CHANGE FOR WORKERS WHO NOW DEPEND ON VULNERABLE JOBS AND INDUSTRIES THE CLINTON ADMINISTRATION IS WORKING HARD TO ANSWER THESE QUESTIONS BUT ONE QUESTION TRAINING FOR WHAT IS EASIER TO ANSWER THAN IT SEEMS THE EVIDENCE SHOWS THAT SKILLS PAY OFF THE EVIDENCE SHOWS THAT AMERICAN WORKERS CAN LEARN TRAINING FOR WHAT FOR THE HIGH SKILL WORK TAKING SHAPE ALL AROUND US TODAY AMERICA'S ECONOMY IS RACING INTO THE FUTURE THERE IS NO EXCUSE FOR LEAVING A SINGLE CITIZEN BEHIND MR. REICH IS THE U. S. SECRETARY OF LABOR G. T. E. CORPORATION STAMFORD CONNECTICUT REPORTED A FOURTH QUARTER LOSS OF FOUR HUNDRED SIXTY SIX MILLION DOLLARS LARGELY DUE TO A PREVIOUSLY ANNOUNCED ONE POINT TWO BILLION DOLLAR CHARGE TO RESTRUCTURE AND SLASH THIRTEEN PERCENT OF ITS WORK FORCE THE LOSS PER SHARE WAS FIFTY CENTS AND COMPARES WITH NET INCOME OF FOUR HUNDRED SEVENTEEN MILLION DOLLARS OR FORTY FOUR CENTS A SHARE A YEAR EARLIER THE NINETEEN NINETY THREE QUARTER ALSO INCLUDED A GAIN OF NINETY ONE MILLION DOLLARS OR TEN CENTS A SHARE FROM THE SALE OF TELEPHONE PROPERTIES REVENUE FOR THE QUARTER SLIPPED ONE POINT FOUR PERCENT TO FIVE POINT OH SIX BILLION DOLLARS FROM FIVE POINT ONE THREE BILLION DOLLARS AS G. T. E.'S PHONE BUSINESS CUT RATES AMID PRICE WARS AND FEDERAL PURCHASES OF MOBILE COMMUNICATION EQUIPMENT DECLINED FOR THE FULL YEAR G. T. E. POSTED NET INCOME OF NINE HUNDRED MILLION DOLLARS OR NINETY THREE CENTS A SHARE COMPARED WITH A NINETEEN NINETY TWO LOSS OF SEVEN HUNDRED FIFTY FOUR MILLION DOLLARS OR EIGHTY SIX CENTS A SHARE MONSANTO COMPANY SAINT LOUIS SAID IT SIGNED A LETTER OF INTENT TO SELL ITS PYRIDINE PESTICIDE BUSINESS TO ROHM AND HAAS COMPANY THE CHEMICAL COMPANIES DIDN'T DISCLOSE TERMS MONSANTO USES THE PYRIDINE CHEMICAL FAMILY TO MAKE DIMENSION WHICH IS SOLD IN THE U. S. TO KILL CRABGRASS THE CHEMISTRY IS ALSO PART OF AN HERBICIDE CALLED VISOR WHICH IS USED IN ORCHARDS AND OLIVE GROVES IN SPAIN IN ADDITION PYRIDINES ARE USED TO MAKE A FUNGICIDE A MONSANTO SPOKESMAN SAID IT IS SELLING THE BUSINESS AS PART OF A PLAN TO FOCUS ITS HERBICIDE RESEARCH ON MAJOR CROPS SUCH AS CORN WHEAT AND SOYBEANS A MONSANTO EXECUTIVE HOWEVER SAID IN A PUBLISHED REPORT IN JANUARY THAT DIMENSION WASN'T AS PROFITABLE AS THE COMPANY HAD EXPECTED PHILADELPHIA BASED ROHM AND HAAS SAID THE PROGRAM FITS INTO ITS LINEUP OF HERBICIDE PRODUCTS BECAUSE IT CONCENTRATES ON NICHE MARKETS THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND THREE EIGHTHS PERCENT HIGH THREE AND ONE EIGHTH PERCENT LOW THREE AND ONE EIGHTH PERCENT NEAR CLOSING BID THREE AND ONE QUARTER PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH SEVEN PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT ONE OH PERCENT SIXTY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE THREE PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FIFTY NINE DAYS THREE POINT TWO OH PERCENT ONE HUNDRED SIXTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO FOUR PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT THREE THREE PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE TWO PERCENT THIRTY DAYS THREE POINT ONE FIVE PERCENT SIXTY DAYS THREE POINT ONE SEVEN PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE TWO PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT FIVE SIX PERCENT THREE MONTHS TWO POINT SEVEN OH PERCENT SIX MONTHS THREE POINT OH FIVE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH SEVEN PERCENT ONE MONTH THREE POINT ONE SEVEN PERCENT THREE MONTHS THREE POINT THREE OH PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH SIX PERCENT THIRTY DAYS THREE POINT OH SEVEN PERCENT SIXTY DAYS THREE POINT OH EIGHT PERCENT NINETY DAYS THREE POINT ONE THREE PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE EIGHT PERCENT ONE HUNDRED FIFTY DAYS THREE POINT TWO OH PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FOUR MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT FIVE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT THREE AND FIVE SIXTEENTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT SIX MONTHS THREE AND THREE QUARTERS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT NINE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY THIRTY FIRST NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE NINE PERCENT THIRTEEN WEEKS THREE POINT ONE SIX PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT NINE PERCENT SIXTY DAYS SIX POINT NINE SIX PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT SIX PERCENT SIXTY DAYS SIX POINT NINE SIX PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN TWO PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS MERISEL INCORPORATED SAID IT COMPLETED ITS ACQUISITION OF COMPUTERLAND CORPORATION'S FRANCHISE AND DISTRIBUTION OPERATION IN A TRANSACTION VALUED AT AS MUCH AS ONE HUNDRED TEN MILLION DOLLARS MERISEL AN EL SEGUNDO CALIFORNIA DISTRIBUTOR OF MICROCOMPUTER HARDWARE AND SOFTWARE PRODUCTS TO COMPUTER RESELLERS SAID IT PAID ABOUT EIGHTY MILLION DOLLARS IN CASH FOR THE OPERATION OF WHICH TWENTY MILLION DOLLARS WILL BE CONVERTED TO MERISEL COMMON STOCK AT A PRICE OF EIGHTEEN DOLLARS AND THIRTEEN CENTS A SHARE MERISEL WHICH ANNOUNCED THE PROPOSED TRANSACTION IN SEPTEMBER SAID IT COULD PAY AS MUCH AS THIRTY MILLION DOLLARS MORE BASED ON FUTURE REVENUE AND OTHER FACTORS THE OPERATION COMPUTERLAND SOLD TO MERISEL HAS ACCOUNTED FOR ROUGHLY HALF OF COMPUTERLAND'S REVENUE THE CLOSELY HELD COMPANY BASED IN PLEASANTON CALIFORNIA SOLD THE BUSINESS TO RAISE MONEY AND BECAUSE THE COMPANY WANTS TO FOCUS ON SERVICING ITS LARGEST ACCOUNTS MERISEL NOW GETS THE RIGHTS TO THE COMPUTERLAND NAME IN THE U. S. COMPUTERLAND SAID IT WILL ANNOUNCE A NEW NAME IN MARCH BUT RETAINS THE RIGHTS TO THE COMPUTERLAND NAME ABROAD OIL SERVICES GIANT SCHLUMBERGER LIMITED SAID IT PLANS TO INVEST SEVEN BILLION DOLLARS OVER FIVE YEARS ON EQUIPMENT NEW PRODUCT DEVELOPMENT AND STREAMLINING SPEAKING TO FINANCIAL ANALYSTS CHAIRMAN EUAN BAIRD ALSO SAID THE COMPANY EXPECTS TO KEEP ABOUT ONE BILLION DOLLARS LIQUID IN ORDER TO SUSTAIN ITS INVESTMENTS AND QUOTE TO REACT QUICKLY WHEN A NEW OPPORTUNITY TO ENHANCE OUR BUSINESS ARISES QUOTE MR. BAIRD SAID THE NEW YORK BASED COMPANY WILL SPEND FOUR BILLION DOLLARS ON NEW OIL FIELD EQUIPMENT ONE POINT FIVE BILLION DOLLARS ON OIL FIELD PRODUCT DEVELOPMENT SOFTWARE AND COMMUNICATIONS AND ONE POINT FIVE BILLION DOLLARS ON STREAMLINING SOME PRODUCTS AND ON ACQUISITIONS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SCHLUMBERGER CLOSED AT FIFTY NINE DOLLARS A SHARE DOWN ZERO POINT THREE SEVEN FIVE DOLLARS A QUIET REVOLUTION IS STIRRING IN THE SCHOOL REFORM MOVEMENT NOW HISPANICS ARE JOINING WITH BLACK AND ANGLO PARENTS IN WANTING A GREATER SAY IN THE TEACHING OF THEIR CHILDREN FROM CHARTER SCHOOLS NOW OPERATING IN CALIFORNIA TO A NEW VOUCHER PROGRAM THAT'S BECOME LAW IN PUERTO RICO HISPANIC PARENTS ARE INCREASINGLY SAYING QUOTE YA BASTA QUOTE HAD ENOUGH THE RED HOT CENTER OF THIS ISSUE RIGHT NOW IS ARIZONA EDUCATION REFORMERS NEED ONLY A HANDFUL OF VOTES TO PASS A SWEEPING EDUCATION REFORM BILL IT WOULD INCLUDE A PILOT PROGRAM OF SCHOOL VOUCHERS FOR TWO THOUSAND ARIZONA CHILDREN THE VOUCHER PROVISION IS OPPOSED BY LIBERAL DEMOCRATS AND A HANDFUL OF REPUBLICANS SIDING WITH THE STATE TEACHERS UNION HISPANIC DEMOCRATS IN THE LEGISLATURE ARE THE SWING VOTE THEY'RE SYMPATHETIC TO SUCH IDEAS AS SCHOOL CHOICE AND CHARTER SCHOOLS BUT ARE UNDER ENORMOUS PRESSURE FROM THEIR PARTY TO SIDE WITH THE PRODUCERS OF EDUCATION RATHER THAN THE CONSUMERS IN THE NEXT FEW DAYS THEY HAVE TO DECIDE BETWEEN THE STATUS QUO OR ENHANCING CHOICES FOR THEIR COMMUNITY NATIONWIDE POLLS SHOW THAT A CLEAR MAJORITY OF HISPANICS FAVOR SCHOOL CHOICE IT IS OUR KIDS WHO SUFFER THE MOST FROM FAILING PUBLIC SCHOOLS SAYS TEXAS STATE REPRESENTATIVE HUGO BERLANGA AN HISPANIC DEMOCRAT LAST YEAR HE SPONSORED A PILOT VOUCHER BILL THAT CAME WITHIN A SINGLE VOTE OF PASSING THE TEXAS HOUSE IN CALIFORNIA HISPANIC PARENTS PROVIDED MAJOR SUPPORT FOR A NEW LAW THAT ALLOWS PARENTS AND TEACHERS TO FORM THEIR OWN INDEPENDENT SCHOOLS WHICH RECEIVE PUBLIC MONEY BUT ARE EXEMPT FROM MANY STIFLING STATE RULES AND REGULATIONS HISPANIC PARENTS SAY PUBLIC SCHOOLS DON'T PROVIDE ENOUGH INDIVIDUALIZED INSTRUCTION AND OFTEN ISOLATE THEIR CHILDREN IN POORLY DESIGNED BILINGUAL CLASSES THEY OFTEN LEAVE ELEMENTARY SCHOOL WITH POOR ENGLISH SKILLS AND ARE THEN SHUNTED INTO CLASSES FOR SLOW LEARNERS CLEMENTINA DURON IS THE PRINCIPAL OF THE JINGLETOWN CHARTER MIDDLE SCHOOL IN OAKLAND CALIFORNIA SHE SAYS JINGLETOWN STUDENTS ARE BECOMING PROFICIENT IN BOTH LANGUAGES BECAUSE PARENTS HELPED HIRE THE BILINGUAL TEACHERS AND AGREED TO BOTH VOLUNTEER AT THE SCHOOL AND ATTEND MONTHLY MEETINGS PARENTS WHO FEEL TEACHERS WILL LISTEN TO THEIR CONCERNS BECOME MORE INTERESTED IN THE SUCCESS OF THEIR CHILDREN SAYS JOSEPH SAMANIEGO A PARENT WHO HELPED SET UP THE JINGLETOWN CHARTER SCHOOL IN PUERTO RICO WHICH LAST YEAR CREATED THE SECOND SCHOOL VOUCHER PROGRAM COVERING U. S. CITIZENS THE PRELIMINARY RESULTS ARE ENCOURAGING EDUCATION SECRETARY JOSE ARSENIO TORRES SAYS IT'S A MYTH THAT SCHOOL CHOICE WILL LEAD TO THE COLLAPSE OF PUBLIC SCHOOLS INSTEAD THE COMPETITION WILL FORCE THEM TO IMPROVE MR. TORRES NOTES THAT MORE PARENTS HAVE USED THE VOUCHERS TO TRANSFER THEIR CHILDREN TO NEW SELF GOVERNING CHARTER SCHOOLS THAN TO PRIVATE SCHOOLS IT'S EVIDENT THAT A LOT OF HISPANIC PARENTS HAVE CONCLUDED THAT SOME PUBLIC SCHOOLS CAN'T OR WON'T PROVIDE THEIR CHILDREN WITH THE TOOLS THEY'RE GOING TO NEED ONCE THEY GO OUT INTO THE U. S.'S HIGHLY COMPETITIVE WORK FORCE IT'S ALSO EVIDENT THAT SOME HISPANICS THINK THE ANYTHING GOES VALUES SYSTEM THAT'S TOLERATED OR EVEN PROMOTED IN MANY AMERICAN PUBLIC SCHOOLS IS SOMETHING THEY'D AS SOON NOT BE PART OF EVENTUALLY EVEN THE POLITICIANS MAY BEGIN TO NOTICE THAT RALLIES FOR EDUCATIONAL REFORM FROM CALIFORNIA TO NEW YORK CITY TO TEXAS TO ARIZONA HAVE MORE AND MORE HISPANIC FACES NORTH AMERICAN BIOLOGICALS INCORPORATED EXPECTS TO REPORT FOURTH QUARTER EARNINGS OF ABOUT ONE POINT FOUR MILLION DOLLARS OR ABOUT TEN CENTS A SHARE SAID DAVID J. GURY PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE THE MIAMI SUPPLIER OF BLOOD PLASMA HAD A NET LOSS OF FIVE HUNDRED FOURTEEN THOUSAND DOLLARS OR FOUR CENTS A SHARE A YEAR EARLIER NORTH AMERICAN BIOLOGICALS SHARES SOARED NINETEEN PERCENT ON THE NEWS UP EIGHTY ONE POINT TWO FIVE CENTS TO FIVE POINT ONE EIGHT SEVEN FIVE DOLLARS IN NASDAQ STOCK MARKET TRADING FOR THE FULL YEAR THE COMPANY EXPECTS TO POST ABOUT THREE POINT FIVE MILLION DOLLARS IN NET INCOME OR ABOUT TWENTY SIX CENTS A SHARE COMPARED WITH A LOSS OF FIVE HUNDRED SEVENTY THREE THOUSAND DOLLARS OR FOUR CENTS A SHARE IN NINETEEN NINETY TWO MR. GURY SAID IN AN INTERVIEW SALES FOR THE FOURTH QUARTER ARE EXPECTED TO BE ABOUT TWENTY NINE POINT EIGHT MILLION DOLLARS COMPARED WITH TWENTY TWO POINT FOUR MILLION DOLLARS A YEAR EARLIER FOR THE YEAR NORTH AMERICAN BIOLOGICALS EXPECTS TO REPORT ABOUT ONE HUNDRED ONE POINT SIX MILLION DOLLARS IN SALES COMPARED WITH EIGHTY TWO POINT FOUR MILLION DOLLARS IN NINETEEN NINETY TWO DALLAS OFFICIALS MANAGED TO ARRANGE LIABILITY INSURANCE FOR A COWBOY VICTORY PARADE DESPITE THE MAYHEM THAT SULLIED LAST YEAR'S SUPER BOWL CELEBRATION SPACE AGE DOCS PHYSICIANS AT THE JOHNSON SPACE CENTER NEAR HOUSTON PERFORMED EYE EXAMS ON FIVE PATIENTS IN COLORADO VIA A NEW NASA SATELLITE DALLAS PIGS THE CITY COUNCIL PASSED AN ORDINANCE BANNING PEOPLE FROM SLAUGHTERING ANIMALS IN THEIR YARDS ALAMODOME SAN ANTONIO'S SPIFFY NEW COVERED STADIUM LOST ONE POINT SEVEN MILLION DOLLARS IN ITS FIRST FOUR MONTHS MUCH WORSE THAN CITY LEADERS PREDICTED FISHNAPPERS THE F. B. I. IS INVESTIGATING THE THEFT OF A MILLION YOUNG HYBRID CATFISH FROM SPAWNING PONDS IN BRAZORIA COUNTY TERESA RODRIGUEZ FEDERAL AUTHORITIES PLAN TO AUCTION MORE THAN ONE MILLION DOLLARS WORTH OF JEWELRY FURS AND A RANCH TO HELP PAY OFF THE DEBTS OF THIS PROMINENT HOUSTON BUSINESSWOMAN REEBOK INTERNATIONAL LIMITED SIDESTEPPING A SHARP DECLINE IN U. S. FOOTWEAR SALES POSTED FOURTH QUARTER NET INCOME OF FIFTY POINT SEVEN MILLION DOLLARS OR FIFTY NINE CENTS A SHARE COMPARED WITH OPERATING PROFIT OF FORTY NINE POINT EIGHT MILLION DOLLARS A YEAR EARLIER THE NINETEEN NINETY TWO FOURTH QUARTER RESULTS INCLUDED A CHARGE FROM ASSET SALES YIELDING A NET LOSS OF SIXTY SEVEN POINT SEVEN MILLION DOLLARS OR SEVENTY FOUR CENTS A SHARE REVENUE FELL TO SIX HUNDRED TWO POINT SIX MILLION DOLLARS IN THE LATEST QUARTER COMPARED WITH SIX HUNDRED SIXTY MILLION DOLLARS A YEAR EARLIER PAUL FIREMAN CHAIRMAN AND CHIEF EXECUTIVE OF THE STOUGHTON MASSACHUSETTS COMPANY ATTRIBUTED THE DECLINE IN PART TO A TWENTY THREE PERCENT DROP IN U. S. FOOTWEAR SALES EATON CORPORATION REPORTED A THIRTY THREE PERCENT DROP IN FOURTH QUARTER PROFIT DUE TO A RESTRUCTURING CHARGE RELATED TO ITS ONE POINT ONE BILLION DOLLAR ACQUISITION OF WESTINGHOUSE ELECTRIC CORPORATION'S DISTRIBUTION AND CONTROL BUSINESS NET INCOME WAS TWENTY SIX MILLION DOLLARS OR THIRTY SIX CENTS A SHARE DOWN FROM THIRTY NINE MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER INCLUDED A CHARGE OF FIFTY FIVE MILLION DOLLARS CALCULATED BEFORE INCOME TAX CREDITS FOR COSTS RELATED TO THE ACQUISITION OF WESTINGHOUSE'S DISTRIBUTION AND CONTROL BUSINESS EATON CLOSED THAT TRANSACTION ON MONDAY AND ALSO SAID IT SOLD SOME OF ACQUIRED WESTINGHOUSE ASSETS TO THOMAS AND BETTS CORPORATION TO SATISFY FEDERAL ANTITRUST CONCERNS ON AN OPERATING BASIS HOWEVER EATON EARNED SIXTY FOUR MILLION DOLLARS OR NINETY CENTS A SHARE MAINLY REFLECTING STRONG RESULTS IN THE COMPANY'S VEHICLES COMPONENTS BUSINESS WHICH INCLUDES THE MANUFACTURE OF TRANSMISSION SYSTEMS SUSPENSIONS AND BRAKES THE LATEST QUARTER'S NET INCOME ALSO INCLUDED THE EFFECT OF A FOUR MILLION DOLLAR CHARGE RELATED TO A DEBENTURE REDEMPTION CLEVELAND BASED EATON SAID SALES ROSE TO ONE POINT ONE TWO BILLION DOLLARS FROM ONE POINT OH THREE BILLION DOLLARS CONTRARY TO THE CONCLUSION REACHED IN THE JOURNAL'S ARTICLE ON JANUARY NINETEENTH QUOTE WORKERS' COMP DID THE REFORMS HELP QUOTE THE NEW WORKERS' COMPENSATION LAW IS WORKING WELL FOR MOST TEXAS EMPLOYERS AND WORKERS FOR EVIDENCE YOU NEED LOOK NO FURTHER THAN THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS SURVEY MENTIONED IN THE ARTICLE ITSELF ACCORDING TO THAT SURVEY FIFTY POINT FIVE PERCENT OF SMALL BUSINESSES SAW THEIR WORKERS' COMPENSATION PREMIUMS REMAIN THE SAME OR DECLINE AND OF THOSE THAT REPORTED AN INCREASE MORE THAN TWO THIRDS SAW CHANGES OF TEN PERCENT OR LESS THIS REPRESENTS A DRAMATIC IMPROVEMENT OVER TWO YEARS AGO WHEN ANNUAL INCREASES OF FIFTY PERCENT OR MORE WERE COMMONPLACE EVEN BETTER RESULTS MAY BE IN STORE FOR INSTANCE TOM WEEKLY A MCALLEN SMALL BUSINESS MAN EXEMPLIFIED IN THE ARTICLE AS NOT BENEFITING FROM THE LAW TOLD ME THAT HIS NINETEEN NINETY FOUR PREMIUMS HAVE DECLINED TWENTY PERCENT IN ADDITION HE NOW SAYS BOTH WORKERS AND BUSINESSES ARE COMING OUT AHEAD UNDER THE LAW AND TERMS IT A GOOD DEAL ALL AROUND UNLESS YOU'RE A LAWYER THE ARTICLE ALSO CASTS ONLY PARTIAL LIGHT ON THE TREATMENT OF INJURED WORKERS IT SUGGESTS THAT THEY MUST GO IT ALONE IN SETTLING CLAIMS DISPUTES YET IT FAILS TO REPORT THAT ACCORDING TO THE TEXAS WORKERS' COMPENSATION COMMISSION NINETY PERCENT OF WORKERS' COMP CLAIMS NOW ARE HANDLED WITH NO NEED FOR DISPUTE RESOLUTION COMPARED WITH SIXTY PERCENT BEFORE THE REFORMS THE FACT IS THAT UNDER THE NEW LAW EMPLOYERS OF ALL SIZES WHO HAVE WORKERS' COMP COVERAGE ARE BEGINNING TO REALIZE SAVINGS MOREOVER THE INJURED ON THE JOB EMPLOYEES WHO WORK FOR THEM ARE RECEIVING GREATER BENEFITS MORE SPEEDILY AND WITH FEWER HASSLES THAN BEFORE THAT SOUNDS LIKE AN IMPROVEMENT TO ME MYLAN LABORATORIES INCORPORATED PITTSBURGH SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET ALPRAZOLAM TABLETS A GENERIC VERSION OF UPJOHN COMPANY'S XANAX USED TO TREAT ANXIETY RONALD NORDMANN ANALYST AT PAINEWEBBER INCORPORATED NOTED THAT THE F. D. A. HAD ALREADY APPROVED ABOUT TEN OTHER GENERIC VERSIONS OF XANAX AND MARKET PRICES FOR THE DRUGS WHICH ARE MINOR TRANQUILIZERS ARE QUOTE COLLAPSING QUOTE IN OCTOBER MYLAN BECAME THE FIRST GENERIC DRUG COMPANY TO WIN F. D. A. APPROVAL TO MAKE AND MARKET CIMETIDINE THE GENERIC EQUIVALENT OF SMITHKLINE BEECHAM P. L. C.'S TAGAMET ULCER DRUG BUT MYLAN DIDN'T HAVE THE ADVANTAGE OF BEING THE FIRST TO MARKET THE GENERIC VERSION OF XANAX MR. NORDMANN SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MYLAN SHARES ROSE FIFTY CENTS TO TWENTY FOUR DOLLARS AND TWENTY FIVE CENTS NORDSON CORPORATION EXPECTS BOOMING U. S. DEMAND FOR ITS SPECIALIZED MACHINERY COMBINED WITH SOME IMPROVEMENT ABROAD TO PRODUCE SHARPLY HIGHER EARNINGS FOR THE FISCAL FIRST QUARTER WILLIAM P. MADAR PRESIDENT AND CHIEF EXECUTIVE SAID AMERICAN MANUFACTURERS ARE MAKING QUOTE STRATEGIC INVESTMENTS QUOTE IN MODERNIZATION PROJECTS MR. MADAR SAID THEY'RE DOING THE KIND OF THINGS THAT COMPANIES DO WHEN THEY EXPECT A LENGTHY PERIOD OF GOOD DEMAND FOR THEIR PRODUCTS OFFICIALS OF NORDSON BASED IN WESTLAKE OHIO DECLINED TO MAKE SPECIFIC EARNINGS PROJECTIONS BUT MR. MADAR IN AN INTERVIEW DIDN'T QUARREL WITH ANALYSTS' FORECASTS OF AN EARNINGS RISE OF ABOUT TWENTY PERCENT FOR THE QUARTER ENDED JANUARY THIRTY FIRST ANALYST ESTIMATES FOR QUARTER AVERAGE FORTY TWO CENTS A SHARE UP FROM OPERATING EARNINGS OF SIX POINT SEVEN MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE A YEAR EARLIER ON SALES OF ONE HUNDRED POINT THREE MILLION DOLLARS THE YEAR EARLIER FIGURE EXCLUDES AN EXTRAORDINARY CHARGE OF TWENTY FIVE CENTS A SHARE NET FOR THE QUARTER WAS ONE POINT NINE MILLION DOLLARS OR TEN CENTS A SHARE COCA COLA COMPANY HAS REDESIGNED THE CAN FOR COCA COLA CLASSIC THE NEW CAN FEATURES TWO DRAWINGS OF THE CONTOURED COKE BOTTLE A FAMILIAR TRADEMARK FOR THE BRAND THAT COKE WANTS TO CAPITALIZE ON INDUSTRY EXECUTIVES HAVE SAID THE ATLANTA COMPANY IS GRADUALLY ROLLING OUT THE CAN WITH PLANS FOR NATIONWIDE DISTRIBUTION BY THE MIDDLE OF THE YEAR A SPOKESWOMAN SAID COKE WOULDN'T PROVIDE FURTHER DETAILS SOFT DRINK EXECUTIVES HAVE SAID THEY ARE SPIFFING UP THEIR PACKAGES THIS YEAR AND INTRODUCING LOTS OF PRODUCTS AS PART OF AN EFFORT TO REVIVE CONSUMER INTEREST IN WHAT HAS BEEN A SLOWING DOMESTIC SOFT DRINK MARKET LAST MONTH PEPSICO INCORPORATED CHANGED ITS DIET PEPSI LABEL AND THE DESIGN FOR ITS MULTIPACK CARDBOARD BOXES FOR OTHER BIG BRANDS MATTEL INCORPORATED SAID IT PREPAID ONE HUNDRED MILLION DOLLARS OF THE HIGH INTEREST DEBT IT ASSUMED IN LAST YEAR'S ACQUISITION OF FISHER PRICE INCORPORATED AND WILL TAKE A FOURTEEN POINT SEVEN MILLION DOLLAR CHARGE IN NINETEEN NINETY THREE'S FOURTH QUARTER EARNINGS TO REFLECT A PREPAYMENT PENALTY AND OTHER COSTS THE EL SEGUNDO CALIFORNIA TOY MAKER SAID THE DEBT THAT WAS PREPAID CARRIED A TEN POINT SIX NINE PERCENT INTEREST RATE GIVING MATTEL QUOTE SIGNIFICANT SAVINGS QUOTE IN FUTURE INTEREST EXPENSES PREPAYMENT FUNDS CAME FROM MATTEL'S YEAR END CASH POSITION OF APPROXIMATELY FIVE HUNDRED MILLION DOLLARS THE COMPANY SAID IN NINETEEN NINETY TWO'S FOURTH QUARTER MATTEL REPORTED NET INCOME OF THIRTY FIVE POINT SEVEN MILLION DOLLARS ON SALES OF FIVE HUNDRED ELEVEN MILLION DOLLARS HOWEVER A MATTEL SPOKESMAN SAID QUARTERLY EARNINGS TO BE REPORTED NEXT WEEK WILL RESTATE THE NINETEEN NINETY TWO PERIOD TO GIVE PRO FORMA EFFECT TO THE ONE POINT ONE BILLION DOLLAR ACQUISITION OF FISHER PRICE YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MATTEL COMMON CLOSED AT TWENTY TWO DOLLARS AND TWENTY FIVE CENTS OFF FIFTY CENTS ON VOLUME OF SIX HUNDRED THIRTEEN THOUSAND ONE HUNDRED SHARES YOUR ARTICLE ON WORKERS' COMPENSATION REFORM WAS COMPREHENSIVE YOU STATE HOWEVER THAT THE ONE BILLION DOLLAR DECLINE IN WORKERS' COMPENSATION PREMIUMS STATEWIDE WAS CAUSED BY LARGE DEDUCTIBLES THIS IS TRUE ONLY TO A SMALL DEGREE AND THE PHENOMENON ENDED WHEN THE CURRENT RATE WAR BROKE OUT LAST SUMMER AND FALL WITH UPFRONT PREMIUM DISCOUNTS OF AS MUCH AS FORTY PERCENT MOST CUSTOMERS HAVE JETTISONED DEDUCTIBLES AND NONSUBSCRIBERS ARE RE ENTERING THE SYSTEM COMPETITION IS NOT PERMITTING INSURANCE COMPANIES TO RECOUP LOSSES FROM PRIOR YEARS THERE ARE TOO MANY HUNGRY INSURANCE COMPANIES WILLING TO UNDERWRITE AT CURRENT PROJECTED LOSSES AND COSTS EMPLOYERS WITH TWENTY OR MORE NONOFFICE TYPE WORKERS WITH AVERAGE RECORDS ARE SEEING RATES AT LEAST TWENTY PERCENT BELOW LAST YEAR'S AND PROBABLY FORTY PERCENT BELOW THE RATES IN NINETEEN NINETY THIS ONE BILLION DOLLARS SAVING IS MONEY COMING RIGHT OUT OF THE POCKETS OF THE PLAINTIFFS BAR AND THEREBY OUT OF THE POCKETS OF CAMPAIGN FUNDS OF OUR LEGISLATURE AND JUDGES THEREFORE LOOK FOR ACTION IN OUR NEXT SESSION OF THE LEGISLATURE TO REMEDY THE PROBLEM THEIR SOLUTION WILL NOT BE GOOD FOR TEXAS BUSINESS AND IT WILL NOT BE GOOD FOR THE WORKERS UPON WHOM THEY DEPEND FOR JOBS A PLUS COMMUNICATIONS INCORPORATED SAID IT PLANS TO EXPAND ITS PAGING NETWORK COVERAGE IN NORTH CAROLINA AND SOUTH CAROLINA WITHIN THE NEXT THREE MONTHS ELLIOTT H. SINGER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT BECAUSE THE PAGING COMPANY REACHED A BREAK EVEN POINT IN ITS OPERATING CASH FLOW IN THOSE TWO STATES IT WILL NOW WORK ON QUOTE INCREASING THE FOOTPRINT QUOTE OF ITS SERVICES THERE WE PLAN TO HAVE COVERAGE FROM THE MOUNTAINS TO THE SEA WITHIN THE NEXT NINETY DAYS MR. SINGER SAID SERVICE WILL BE EXPANDED FROM LUMBERTON AND WILMINGTON N. C. TO CHARLESTON AND HILTON HEAD S. C. FOR THE FOURTH QUARTER THE NASHVILLE TENNESSEE CONCERN EXPECTS TO REPORT A NET LOSS OF ABOUT SIXTY FIVE THOUSAND DOLLARS OR ONE CENT A SHARE COMPARED WITH A NET LOSS OF SEVEN HUNDRED TWENTY THREE THOUSAND DOLLARS OR TWENTY THREE CENTS A SHARE A YEAR EARLIER VIACOM AND Q. V. C. EACH INCREASED SLIGHTLY THEIR OFFERS FOR PARAMOUNT MOMENTS BEFORE THE DEADLINE Q. V. C. RAISED THE CASH PORTION OF ITS OFFER TO ONE HUNDRED FOUR DOLLARS A SHARE FROM NINETY TWO DOLLARS BUT REDUCED THE AMOUNT OF Q. V. C. STOCK IN THE BID VIACOM LEFT THE CASH PORTION OF ITS OFFER UNCHANGED AT ONE HUNDRED SEVEN DOLLARS A SHARE BUT BOOSTED THE VALUE OF SECURITIES BEING OFFERED MANY TRADERS SAID THE CONTEST WAS TOO CLOSE TO CALL ALTHOUGH SEVERAL SAID VIACOM STILL RETAINED A SLIGHT EDGE A HEALTHY RISE IN ORDERS HELPED THE MANUFACTURING SECTOR EXPAND AGAIN IN JANUARY ACCORDING TO A SURVEY OF PURCHASING MANAGERS BUT THE GROWTH BROUGHT ALONG NEW HINTS OF INFLATION BOND PRICES PLUNGED ON THE STRONG MANUFACTURING ACTIVITY REPORT THE TREASURY'S THIRTY YEAR ISSUE LOST OVER ONE POINT AND ITS YIELD WAS SIX POINT THREE ONE PERCENT THE DOW JONES INDUSTRIALS FELL FOURTEEN POINT THREE FIVE TO THREE THOUSAND NINE HUNDRED SIXTY FOUR POINT OH ONE THE FEDERAL RESERVE BOARD'S DAVID MULLINS RESIGNED AS VICE CHAIRMAN THE MOVE COINCIDES WITH THE END OF WAYNE ANGELL'S TERM ALLOWING CLINTON TO FILL TWO OF THE FED'S SEVEN SEATS AS IT IS DECIDING WHEN AND HOW MUCH TO RAISE SHORT TERM INTEREST RATES CLEAN AIR REGULATORS IN THE NORTHEAST VOTED IN FAVOR OF ADOPTING STRINGENT CALIFORNIA STYLE VEHICLE EMISSIONS RULES THAT WOULD IN EFFECT REQUIRE THE SALE OF ELECTRIC CARS DEALING A SETBACK TO THE AUTOMOBILE INDUSTRY PHILIP MORRIS SUED SAN FRANCISCO TO TRY TO OVERTURN ONE OF THE NATION'S TOUGHEST ANTISMOKING ORDINANCES R. J. R. NABISCO POSTED A FOURTH QUARTER LOSS OF FOUR HUNDRED SIXTY ONE MILLION DOLLARS LARGELY REFLECTING A CHARGE FOR WORK FORCE CUTS TWO CONTINENTAL BANK DIRECTORS BOUGHT SHARES IN THE COMPANY DURING TALKS THAT LED TO THE PROPOSED ONE POINT NINE BILLION DOLLAR ACQUISITION BY BANKAMERICA T. V. BROADCASTERS ARE EXPECTED TO ASK CONGRESS TO EXPAND THE WAYS THEY CAN USE THEIR SPECTRUM INCLUDING SENDING DATA TO LAPTOP COMPUTERS I. C. N. SAID SHAREHOLDERS QUOTE OVERWHELMINGLY QUOTE VOTED TO BACK MILAN PANIC REBUFFING A TEN MONTH CAMPAIGN BY RAFI KHAN TO OUST THE CHAIRMAN THE S. E. C. IS INVESTIGATING WHETHER TO TIGHTEN DISCLOSURE STANDARDS ON CERTAIN TRIPLE A RATED MORTGAGE ISSUES OIL PRICES JUMPED ON REPORTS THAT BITTER COLD WEATHER WILL PLAGUE MUCH OF THE COUNTRY THROUGH NEXT WEEK BELL ATLANTIC RESOLVED KEY ISSUES ABOUT ITS PLANNED PURCHASE OF T. C. I. AND HOPES FOR A PACT WITHIN TWO WEEKS MONTGOMERY WARD AGREED TO ACQUIRE LECHMERE AN APPLIANCE AND CONSUMER ELECTRONICS RETAILER KODAK'S NET INCOME DROPPED THIRTY THREE PERCENT FOR THE FOURTH QUARTER BUT OPERATING EARNINGS ROSE BECAUSE OF COST CUTTING COMPAQ IS EXPECTED TO UNVEIL NEXT WEEK ITS FIRST SUBNOTEBOOK COMPUTER FOR ABOUT ONE THOUSAND DOLLARS LESS THAN ITS RIVALS THE NOMINEE TO HEAD THE F. D. I. C. RICKI TIGERT WON STRONG SUPPORT FROM SENATE BANKING COMMITTEE MEMBERS PEPSICO POSTED A SIXTY SEVEN PERCENT GAIN IN FOURTH QUARTER PROFIT REFLECTING A YEAR AGO CHARGE AND STRONGER DOMESTIC SNACK FOOD AND RESTAURANT SALES TENNECO POSTED FOURTH QUARTER EARNINGS OF ONE HUNDRED FIFTY MILLION DOLLARS COMPARED WITH A YEAR AGO LOSS AND SAID IT ISN'T PLANNING TO SELL ITS CASE DIVISION BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND SIX HUNDRED POINT ONE ONE OFF FORTY SIX POINT EIGHT SEVEN COMMODITIES OIL FIFTEEN DOLLARS AND NINETY TWO CENTS A BARREL UP SEVENTY THREE CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY THREE POINT ONE TWO UP ZERO POINT NINE SEVEN SPOT INDEX ONE HUNDRED THIRTY POINT FIVE FOUR UP ZERO POINT EIGHT ONE DOLLAR ONE HUNDRED SEVEN POINT SEVEN OH YEN OFF ONE POINT OH ONE POINT SEVEN THREE TWO OH MARKS OFF ZERO POINT ZERO ZERO TWO FIVE IN A DRAMATIC SHOWDOWN MOMENTS BEFORE THE FINAL BIDDING DEADLINE RIVALS VIACOM INCORPORATED AND Q. V. C. NETWORK INCORPORATED EACH MADE SMALL INCREASES IN THEIR TAKEOVER BIDS FOR PARAMOUNT COMMUNICATIONS INCORPORATED ALTHOUGH SEVERAL TAKEOVER STOCK TRADERS SAID VIACOM RETAINED A SLIGHT EDGE IN THE BIDDING THERE WAS NO KNOCKOUT BLOW AND OTHER TRADERS SAID IT WAS TOO EARLY TO DETERMINE WHICH OF THE THE COMPLEX CASH AND STOCK BIDS WOULD PREVAIL QUOTE NO ONE HAS EMERGED AS A CLEAR WINNER QUOTE SAID JESSICA REIF AN ANALYST AT OPPENHEIMER AND COMPANY INVESTORS HAVE UNTIL FEBRUARY FOURTEENTH TO DECIDE WHICH BID TO SELECT AND IT APPEARED POSSIBLE THAT NEITHER BIDDER WOULD GAIN THE FIFTY POINT ONE PERCENT MAJORITY OF PARAMOUNT STOCK NEEDED TO WIN THE CONTEST UNDER BIDDING GROUND RULES SET BY PARAMOUNT AT THAT POINT THOSE BIDDING RULES WOULD LAPSE AND BIDS COULD RESUME Q. V. C.'S BID APPEARED TO BE HIGHER WITH A VALUE OF ROUGHLY TEN POINT THREE BILLION DOLLARS OR EIGHTY SIX DOLLARS A SHARE WHILE VIACOM'S BID HAD A VALUE OF ROUGHLY TEN BILLION DOLLARS OR EIGHTY THREE DOLLARS A SHARE HOWEVER VALUATIONS VARIED WIDELY BASED ON TRADERS' EXPECTATIONS OF WHERE THE BIDDERS' STOCKS WOULD TRADE IF THEY WON WHILE Q. V. C. RAISED THE CASH PORTION OF ITS OFFER FOR FIFTY POINT ONE PERCENT OF PARAMOUNT SHARES TO ONE HUNDRED FOUR DOLLARS A SHARE FROM NINETY TWO DOLLARS OR SEVEN HUNDRED FIFTY MILLION DOLLARS THE HOME SHOPPING CABLE T. V. CHANNEL OPERATOR REDUCED THE AMOUNT OF COMMON AND PREFERRED STOCK BEING OFFERED FOR THE REMAINING FORTY NINE POINT NINE PERCENT OF PARAMOUNT Q. V. C. WAS AIDED BY A FIVE HUNDRED MILLION DOLLAR STOCK SALE TO BELLSOUTH CORPORATION WHICH IS ALREADY BACKING ITS BID Q. V. C. ALSO IGNORED APPEALS FROM INVESTORS TO PROVIDE SOME EXTRA COMPENSATION THAT WOULD INCREASE IF ITS STOCK DOESN'T PERFORM WELL A FEATURE THAT HELPED VIACOM'S PREVIOUS BID GAIN THE BACKING OF PARAMOUNT'S BOARD ON JANUARY TWENTY FIRST IN THE NEW OFFER VIACOM IMPROVED THE TERMS OF THAT FEATURE KNOWN AS A CONTINGENT VALUE RIGHT AS A RESULT MEDIA ANALYST LISBETH G. BARRON OF S. G. WARBURG AND COMPANY SAID Q. V. C.'S BID IS HIGHER BUT VIACOM'S IS MORE SECURE VIACOM LEFT THE CASH PORTION OF ITS OWN OFFER UNCHANGED AT ONE HUNDRED SEVEN DOLLARS A SHARE FOR FIFTY POINT ONE PERCENT OF PARAMOUNT BUT THE CABLE T. V. PROGRAMMER BOOSTED THE VALUE OF SECURITIES BEING OFFERED FOR THE REMAINING FORTY NINE POINT NINE PERCENT THE SMALL INCREASES IN THE BIDS COMING JUST BEFORE YESTERDAY'S FIVE P. M. E. S. T. DEADLINE SUGGEST THAT BOTH VIACOM AND Q. V. C. ARE WORRIED ABOUT OVERPAYING FOR THE ENTERTAINMENT AND PUBLISHING GIANT AMID SIGNS THAT ITS RESULTS HAVE BEEN DETERIORATING EVEN AS BIDS ESCALATED DURING THE FOUR AND ONE HALF MONTH TAKEOVER CONTEST PARAMOUNT ONE OF THE LAST INDEPENDENT T. V. AND MOVIE STUDIOS BECAME THE OBJECT OF THE TAKEOVER FIGHT BECAUSE MEDIA COMPANIES ARE SCRAMBLING TO ACQUIRE ENTERTAINMENT ASSETS TO FEED A BURGEONING MULTIMEDIA UNIVERSE TAKEOVER STOCK TRADERS SAID THE BIDS ARE ALSO DIFFICULT TO VALUE BECAUSE OF THE VARIETY OF SECURITIES THEY CONTAIN IN VIACOM'S CASE FIVE DIFFERENT SECURITIES ARE BEING OFFERED FOR FORTY NINE POINT NINE PERCENT OF PARAMOUNT'S SHARES ONE INVESTMENT BANKER SAID THE OFFERS READ LIKE TWO MENUS FROM CHINESE RESTAURANTS VIACOM IS OFFERING ONE SECURITY THAT WILL EITHER BE A DEBT SECURITY PAYING EIGHT PERCENT INTEREST IF VIACOM COMPLETES ITS PROPOSED ACQUISITION OF BLOCKBUSTER ENTERTAINMENT CORPORATION OR A PREFERRED STOCK PAYING A FIVE PERCENT DIVIDEND IF THE BLOCKBUSTER TRANSACTION ISN'T COMPLETED BY JANUARY FIRST NINETEEN NINETY FIVE VIACOM AND Q. V. C. EACH IMMEDIATELY BEGAN PROMOTING ITS BID AS SUPERIOR IN WHAT COULD BE THE START OF A TWO WEEK SOLICITATION CAMPAIGN LEADING UP TO THE FEBRUARY FOURTEENTH DECISION BY TRADERS AND INVESTORS Q. V. C. CHAIRMAN BARRY DILLER SAID HE FELT HIS COMPANY HAD TO RESPOND TO VIACOM'S PREVIOUS INCREASE IN THE CASH PORTION OF THE DEAL I DID FEEL THAT TO A NORMAL PERSON THE CASH DIFFERENTIAL SPOKE LOUDLY HE SAID I FELT WE HAD AN OBLIGATION TO ADDRESS IT BUT THE HOME SHOPPING COMPANY'S CHIEF VIGOROUSLY DEFENDED HIS DECISION NOT TO BOLSTER THE SO CALLED BACK END OF THE OFFER AS VIACOM DID IT'S UNFAIR TO OUR HOLDERS TO PUT THEM IN A POSITION THAT COULD COST THEM AN EXTRAORDINARY AMOUNT OF DILUTION IF ADDITIONAL Q. V. C. SHARES HAD TO BE ISSUED UNDER A CONTINGENT VALUE SECURITY TAKEOVER STOCK TRADERS WHO ALREADY FAVORED THE PREVIOUS VIACOM OFFER SAID THAT VIACOM'S INCREASE IN THE VALUE OF SECURITIES BEING OFFERED FOR FORTY NINE POINT NINE PERCENT OF PARAMOUNT WAS GREATER THAN THE INCREASE IN Q. V. C.'S OVERALL BID QUOTE UNLESS SOMETHING DRAMATIC HAPPENS IN THE INTERIM WE'LL BE TENDERING OUR SHARES TO VIACOM AS WILL ALL THE SHORT TERM INVESTORS QUOTE SAID MARK DICKSTEIN PRESIDENT OF THE INVESTMENT FIRM OF DICKSTEIN PARTNERS INCORPORATED Q. V. C. SAID IT'S FINANCING THE BULK OF THE INCREASED CASH IN ITS BID WITH A PLANNED FIVE HUNDRED MILLION DOLLAR STOCK SALE TO BELLSOUTH WHICH HAD ALREADY AGREED TO INVEST ONE POINT FIVE BILLION DOLLARS BUT SOME TRADERS SAID THE FORTY TWO DOLLARS A SHARE THAT BELLSOUTH AGREED TO PAY TWO DOLLARS AND SEVENTY FIVE CENTS BELOW Q. V. C.'S MARKET PRICE COULD UNDERCUT MR. DILLER'S ARGUMENT THAT THE STOCK IS A GOOD BUY BELLSOUTH ALSO WON A REDUCTION IN THE PRICES IT PREVIOUSLY AGREED TO PAY FOR Q. V. C. STOCK UNDER THE ONE POINT FIVE BILLION DOLLARS COMMITMENT INDICATING THAT THE NEGOTIATION FOR THE ADDITIONAL FUNDS WAS HARD FOUGHT FOR EXAMPLE ONE TRADER WITH A LARGE PARAMOUNT POSITION ASSUMES THAT Q. V. C. STOCK WOULD TRADE AT THIRTY FIVE DOLLARS A SHARE IF Q. V. C. WON THE CONTEST AND VIACOM CLASS B. SHARES WOULD TRADE AT THIRTY TWO DOLLARS IF VIACOM WON AT THOSE LEVELS HE VALUES THE Q. V. C. BID AT SEVENTY NINE DOLLARS AND THIRTY CENTS A SHARE OR NINE POINT FIVE BILLION DOLLARS AND THE VIACOM BID AT EIGHTY ONE DOLLARS AND TWENTY FIVE CENTS A SHARE OR NINE POINT EIGHT BILLION DOLLARS MARIO GABELLI WHOSE GABELLI INVESTMENT FUNDS OWN PARAMOUNT SHARES SAID THAT BASED ON THE CLOSING PRICE OF THE TWO STOCKS YESTERDAY Q. V. C. APPEARS TO HAVE A THREE DOLLAR TO FOUR DOLLARS ADVANTAGE OVER VIACOM THOUGH HE ACKNOWLEDGED THAT TRADERS MAY NOT VALUE IT THAT WAY TODAY THE MAIN THING IS YOU STILL HAVE TWO BUYERS THEY'RE BOTH STILL THERE KEEPING THE BALL ROLLING MR. GABELLI SAID BUT I DON'T THINK EITHER HAS SHOWN THEIR BEST DEAL YET HE ADDED THIS IS WHAT I CALL THE HIGHWAY CHICKEN GAME THAT TEENAGERS PLAY ONLY VIACOM AND Q. V. C. ARE PLAYING IT ON THE INFORMATION HIGHWAY THE FIRST ONE TO LET THE OTHER GET FIFTY PERCENT LOSES AS OF YESTERDAY MORNING VIACOM WAS SLIGHTLY OUTDRAWING Q. V. C. UNDER THE COMPANIES' PREVIOUS COMPETING TENDER OFFERS VIACOM HAD RECEIVED TWENTY ONE POINT SEVEN MILLION PARAMOUNT SHARES OR EIGHTEEN PERCENT UNDER ITS NINE POINT SEVEN BILLION DOLLAR OFFER COMPARED WITH Q. V. C.'S TOTAL OF NINETEEN MILLION OR SIXTEEN PERCENT FOR ITS TEN POINT TWO BILLION DOLLAR OFFER NEITHER BIDDER CAME CLOSE TO RECEIVING THE FIFTY POINT ONE PERCENT MAJORITY OF SHARES NEEDED TO WIN THE CONTEST BECAUSE TRADERS WANTED TO GET A LOOK AT YESTERDAY'S FINAL BIDS Q. V. C. STOCK ROSE SEVENTY FIVE CENTS A SHARE TO FORTY FOUR DOLLARS AND SEVENTY FIVE CENTS ON THE NASDAQ STOCK MARKET VIACOM CLASS B. SHARES TUMBLED ONE POINT ONE TWO FIVE DOLLARS TO THIRTY FOUR POINT ONE TWO FIVE DOLLARS ON THE AMERICAN STOCK EXCHANGE THE EIGHTEEN PERCENT TO SIXTEEN PERCENT MARGIN OF SHARES TENDERED TO EACH BIDDER WAS IN LINE WITH AN OPINION BY PARAMOUNT'S INVESTMENT ADVISER LAZARD FRERES AND COMPANY THAT THE VIACOM OFFER WAS MARGINALLY SUPERIOR MOODY'S INVESTORS SERVICE INCORPORATED SAID IT UPGRADED AMPHENOL'S NINETY FIVE MILLION DOLLAR ISSUE OF SENIOR SUBORDINATED NOTES DUE TWO THOUSAND TWO TO SINGLE B. ONE FROM SINGLE B. TWO MOODY'S SAID THE UPGRADE REFLECTS QUOTE THE GOOD RETURNS AND FAVORABLE OUTLOOK QUOTE OF THE COAXIAL CABLE BUSINESS OF AMPHENOL'S TIMES FIBER UNIT PROGRESS ON DEBT REDUCTION AND THE ANTICIPATED BENEFITS OF A POSSIBLE STOCK SALE AMPHENOL MAKES ELECTRICAL ELECTRONIC AND FIBER OPTIC EQUIPMENT THE NOMINEE TO HEAD THE FEDERAL DEPOSIT INSURANCE CORPORATION TOLD HER CONFIRMATION HEARING THAT SHE WANTS TO RELIEVE BANKS OF CUMBERSOME REGULATION BUT REPUBLICANS TRIED TO TURN THE HEARING INTO A SESSION ON PRESIDENT CLINTON'S CONNECTIONS TO A FAILED ARKANSAS THRIFT RICKI TIGERT WON STRONG SUPPORT TO HEAD THE F. D. I. C. FROM MEMBERS OF THE SENATE BANKING COMMITTEE WHILE GIVING HER VIEWS ON BANKING ISSUES RANGING FROM DERIVATIVES TO DISCRIMINATORY LENDING SHE MANAGED TO SIDESTEP REPUBLICAN EFFORTS TO FORCE HER TO RECUSE HERSELF FROM ANY AGENCY INVESTIGATION OF MADISON GUARANTY SAVINGS AND LOAN A FAILED THRIFT THAT HAS BEEN LINKED TO MR. CLINTON'S POLITICAL CAMPAIGNS AND HIS INVESTMENT IN WHITEWATER DEVELOPMENT COMPANY THE F. D. I. C. IS TANGENTIALLY INVOLVED IN THE MADISON GUARANTY AFFAIR WHICH IS THE SUBJECT OF AN INDEPENDENT COUNSEL'S INVESTIGATION THE AGENCY HIRED THE ROSE LAW FIRM OF LITTLE ROCK ARKANSAS TO SUE AN ACCOUNTING FIRM THAT HAD DONE WORK FOR MADISON BEFORE IT FAILED HILLARY RODHAM CLINTON WAS A PARTNER IN THE ROSE FIRM AND WAS AT ONE TIME RETAINED TO DO LEGAL WORK FOR MADISON NOW THE F. D. I. C. IS TRYING TO DECIDE WHETHER ROSE ACCURATELY INFORMED THE AGENCY OF ITS TIES TO MADISON ALTHOUGH MS. TIGERT IS A FRIEND OF MRS. CLINTON'S SHE REBUFFED EFFORTS BY G. O. P. SENATORS LAUCH FAIRCLOTH OF NORTH CAROLINA AND ALFONSE D'AMATO OF NEW YORK TO HAVE HER RECUSE HERSELF FROM ANY F. D. I. C. CONSIDERATION OF THE CASE INSTEAD SHE SAID SHE WOULD CHECK WITH F. D. I. C. ETHICS OFFICERS AND QUOTE TAKE THE NECESSARY STEPS TO INSURE THE CREDIBILITY OF THE REGULATORY PROCESS QUOTE IN FACT THE ISSUE MAY BE OVER BEFORE MS. TIGERT A BANKING LAWYER IN THE WASHINGTON OFFICE OF GIBSON DUNN AND CRUTCHER REACHES THE F. D. I. C. ANDREW HOVE THE AGENCY'S ACTING CHAIRMAN TOLD THE PANEL THAT THE AGENCY WILL COMPLETE AN INVESTIGATION OF THE ROSE ISSUE IN TEN DAYS TO TWO WEEKS MR. HOVE HAS BEEN NOMINATED TO ANOTHER TERM AS VICE CHAIRMAN AND IS EXPECTED TO WIN CONFIRMATION WITHOUT CONTROVERSY ANNE HALL A THIRD NOMINEE TO THE FIVE MEMBER BOARD IS ALSO EXPECTED TO WIN CONFIRMATION MS. HALL IS A VICE PRESIDENT OF BANC ONE CORPORATION IN COLUMBUS OHIO REPUBLICANS HAVE BEEN TRYING TO GET THE BANKING COMMITTEES IN BOTH THE HOUSE AND THE SENATE TO HOLD HEARINGS ON MADISON GUARANTY BUT THE DEMOCRATIC CHAIRMEN HAVE REFUSED YESTERDAY HOWEVER THE TWO CHAIRMEN SENATOR DONALD RIEGLE OF MICHIGAN AND REPRESENTATIVE HENRY GONZALEZ OF TEXAS SAID THEY WILL HOLD HEARINGS ON OVERSIGHT OF THE RESOLUTION TRUST CORPORATION WHICH DISPOSES OF FAILED THRIFTS AND LAUNCHED THE MADISON INQUIRY IN THE FIRST PLACE REPUBLICANS HOPE TO USE THESE HEARINGS AS A VEHICLE FOR RAISING QUESTIONS ABOUT THE TIES BETWEEN THE CLINTONS AND MADISON THE FORMER OWNER OF MADISON WAS A PARTNER WITH THE CLINTONS IN WHITEWATER DEVELOPMENT A LAND COMPANY AND WAS A POLITICAL FUND RAISER FOR MR. CLINTON WHEN HE WAS GOVERNOR OF ARKANSAS ONE ISSUE IS WHETHER MADISON FUNDS WERE IMPROPERLY USED TO FUND CAMPAIGN CONTRIBUTIONS AND BUSINESS INVESTMENTS MS. TIGERT STRONGLY SUPPORTED THE CLINTON ADMINISTRATION'S PROPOSAL TO CONSOLIDATE FOUR BANK REGULATORY AGENCIES INTO A NEW FEDERAL BANKING COMMISSION TO STREAMLINE BANK SUPERVISION A MORE THOUGHTFUL STRUCTURE FOR BANK REGULATION SHOULD INCREASE THE ENERGY AND FUNDS THAT BANKS CAN DEVOTE TO THE U. S. ECONOMY SHE SAID BANKS MUST BE RELIEVED FROM CONFUSING DUPLICATIVE AND OVERLAPPING REGULATION THAT IS NOT ESSENTIAL TO SAFETY AND SOUNDNESS SHE EXPRESSED HOPE THAT THE TREASURY AND THE FEDERAL RESERVE BOARD WHERE SHE ONCE WORKED WILL RESOLVE THEIR DIFFERENCES OVER THE PROPOSAL SHE ALSO SUPPORTED ALLOWING BANKS TO OPERATE INTERSTATE BRANCH NETWORKS AS A WAY TO CUT COSTS AND INCREASE EFFICIENCY A HOUSE PANEL IS EXPECTED TO APPROVE AN INTERSTATE BRANCH PLAN THIS WEEK THE RAPID GROWTH OF BANK INVOLVEMENT IN DERIVATIVES PRODUCTS USED TO HEDGE AGAINST INTEREST RATE FLUCTUATIONS AND OTHER RISKS IS A SOURCE OF CONCERN MS. TIGERT TOLD THE PANEL SHE SAID THAT THE FINANCIAL INDUSTRY HAS ISSUED RECOMMENDATIONS FOR LIMITING THE RISK OF DERIVATIVES AND THAT THE CLINTON ADMINISTRATION IS MONITORING THE DERIVATIVES MARKET MS. TIGERT ALSO SAID SHE WAS WORRIED BY SURVEYS SHOWING THAT MANY PEOPLE WHO PURCHASE MUTUAL FUNDS FROM BANKS MISTAKENLY THINK THEY'RE COVERED BY FEDERAL DEPOSIT INSURANCE SHE SUGGESTED THAT MORE DISCLOSURE MAY BE NECESSARY YESTERDAY THE BANKING INDUSTRY ISSUED A STATEMENT BASED ON GOVERNMENT GUIDELINES DESIGNED TO END CONFUSION ABOUT BANK SALES OF MUTUAL FUNDS THE WHITE HOUSE LOBBIED AGGRESSIVELY TO STAVE OFF AN EMBARRASSING VOTE BY AN INFLUENTIAL BUSINESS GROUP IN FAVOR OF A RIVAL HEALTH CARE BILL THE BUSINESS ROUNDTABLE A GROUP OF CHIEF EXECUTIVE OFFICERS OF SOME OF THE NATION'S LARGEST CORPORATIONS IS SCHEDULED TO VOTE THIS AFTERNOON ON A RECOMMENDATION BY ITS HEALTH CARE TASK FORCE TO SUPPORT LEGISLATION AUTHORED BY REPRESENTATIVE JIM COOPER D. TENNESSEE AND SENATOR JOHN BREAUX D. LOUISIANA THE PROSPECT OF THE BUSINESS GROUP BACKING THE COOPER BILL LED THE WHITE HOUSE TO INVITE A GROUP OF TOP EXECUTIVES TO MEET YESTERDAY AFTERNOON WITH HILLARY RODHAM CLINTON AND SENIOR ADMINISTRATION OFFICIALS PRESIDENT CLINTON HIMSELF DROPPED BY FOR A FEW MINUTES ACCORDING TO PARTICIPANTS UNDERSCORING THE URGENCY OF THE BUSINESS ROUNDTABLE VOTE AMONG THOSE AT THE MEETING WERE THE CHIEF EXECUTIVES OF T. R. W. INCORPORATED PROCTER AND GAMBLE COMPANY BOEING COMPANY ALUMINUM COMPANY OF AMERICA DUPONT COMPANY AND U. A. L. CORPORATION'S UNITED AIRLINES ADMINISTRATION OFFICIALS INCLUDING ECONOMIC ADVISER ROBERT RUBIN DEPUTY TREASURY SECRETARY ROGER ALTMAN AND SENIOR WHITE HOUSE HEALTH CARE AIDE IRA MAGAZINER TOLD THE GROUP THAT IT WOULD BE UNWISE TO BACK A PARTICULAR HEALTH CARE BILL AT THIS STAGE QUOTE WE TOLD THEM TO LOOK AT ALL OF THE OPTIONS ON THE TABLE QUOTE SAID ALEXIS HERMAN WHO HEADS THE WHITE HOUSE'S OFFICE OF PUBLIC LIAISON WHY FORECLOSE YOUR OPTIONS THIS EARLY IN THE PROCESS WE THINK THAT'S A MESSAGE BUSINESS UNDERSTANDS THE ADMINISTRATION OFFICIALS STRESSED THAT THEY UNDERSTAND THE BUSINESS COMMUNITY'S CONCERNS ABOUT THE CLINTON HEALTH CARE PLAN BUT THEY SAID THE PRESIDENT HAS SHOWN HE'S WILLING TO COMPROMISE ON SUCH ISSUES AS CAPS ON HEALTH INSURANCE PREMIUMS AND THE SHAPE OF PROPOSED REGIONAL INSURANCE BUYING POOLS BEYOND THAT THE ADMINISTRATION OFFICIALS QUESTIONED WHY THE C. E. O.S WOULD WANT TO ENDORSE THE COOPER BILL WHEN IT WOULDN'T GUARANTEE HEALTH COVERAGE FOR EVERYONE THEY NOTED THAT BIG COMPANIES ALREADY PROVIDE MEDICAL INSURANCE FOR THEIR WORKERS PRESIDENT CLINTON HAS MADE UNIVERSAL COVERAGE THE ONE POINT ON WHICH HE WON'T YIELD EVEN THREATENING TO VETO ANY LEGISLATION THAT DOESN'T MEET THAT STANDARD MS. HERMAN DENIED THAT YESTERDAY'S MEETING WAS A LAST MINUTE SCRAMBLE CHARACTERIZING IT INSTEAD AS PART OF A CONTINUING EFFORT BY THE ADMINISTRATION TO REACH OUT TO BUSINESS LEADERS BUT THE WHITE HOUSE CLEARLY IS WORRIED ABOUT THE BIPARTISAN SUPPORT THE COOPER BILL ENJOYS AT THE WHITE HOUSE'S REQUEST REPRESENTATIVES DAN ROSTENKOWSI D. ILLINOIS AND JOHN DINGELL D. MICHIGAN HAVE BEEN CONTACTING COMPANIES TO MAKE THE ADMINISTRATION'S CASE REPRESENTATIVE ROSTENKOWSKI CALLED A GROUP OF TOP EXECUTIVES TO A MEETING ON CAPITOL HILL LAST NIGHT IN ADDITION MESSRS RUBIN ALTMAN MAGAZINER AND WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY HAVE BEEN WORKING THE PHONES AMONG THOSE WHO HAVE BEEN CONTACTED BY THE WHITE HOUSE ARE EASTMAN KODAK COMPANY FORD MOTOR COMPANY AND XEROX CORPORATION IF THE WHITE HOUSE SUCCEEDS IN QUASHING A ROUNDTABLE VOTE IN FAVOR OF THE COOPER BILL IT WILL BE A CONSIDERABLE VICTORY THE PRO COOPER RESOLUTION ALREADY WAS APPROVED BY THE ROUNDTABLE'S POLICY COMMITTEE IN A LOPSIDED VOTE EARLIER THIS MONTH BUT THE WHITE HOUSE ASKED THE BUSINESS GROUP TO DELAY ANNOUNCING THE VOTE UNTIL AFTER THE PRESIDENT'S STATE OF THE UNION ADDRESS LAST WEEK THE ROUNDTABLE AGREED TO RECONSIDER THE VOTE AT ITS POLICY COMMITTEE'S ANNUAL MEETING TODAY WHILE THE ADMINISTRATION LOBBIED ROUNDTABLE MEMBERS YESTERDAY PRESIDENT CLINTON STEPPED UP HIS ATTACK ON THE NATION'S HEALTH INSURANCE INDUSTRY IN TWO SEPARATE SPEECHES HE ASSERTED THAT INSURERS ARE WASTEFUL DISCRIMINATORY AND AN IMPEDIMENT TO A FULVLY FUNCTIONING HEALTH CARE SYSTEM INSURANCE COMPANIES HAVE SET UP A SYSTEM WHICH ENABLES THEM TO SLAM THE DOOR ON PEOPLE WHO AREN'T HEALTHY ENOUGH TO GET COVERED MR. CLINTON CHARGED DURING A SPEECH TO THE AMERICAN HOSPITAL ASSOCIATION LATER HE TOLD THE NATIONAL GOVERNORS ASSOCIATION WE DO HAVE A SYSTEM UNLIKE ANY OTHER IN THE ADVANCED COUNTRIES IN THE WORLD IN WHICH INSURANCE COMPANIES DECIDE WHO'S COVERED AND WHO ISN'T WHAT THE COST OF INSURANCE IS AND WHAT'S COVERED IN SPECIFIC POLICIES DEMOCRATS ON CAPITOL HILL ALSO SCORNED THE INSURERS AT A SENATE FINANCE COMMITTEE HEARING THE HEALTH INSURANCE LOBBY HEARD ANGRY WORDS ABOUT ITS MULTIMILLION DOLLAR ADVERTISING CAMPAIGN DESIGNED TO UNDERCUT THE CLINTON HEALTH PLAN QUOTE YOU'RE SCARING PEOPLE QUOTE SAID SENATOR JAY ROCKEFELLER D. WEST VIRGINIA IN A SHARP EXCHANGE WITH FORMER REPRESENTATIVE WILLIS GRADISON AN OHIO REPUBLICAN WHO RESIGNED FROM CONGRESS LAST YEAR TO HEAD THE HEALTH INSURANCE ASSOCIATION OF AMERICA MR. GRADISON NOTED THAT HIS GROUP SUPPORTS MANY INSURANCE REFORMS IN THE CLINTON ADMINISTRATION'S BILL SENATOR ROCKEFELLER ALSO SUGGESTED THAT THE PRESIDENT'S PROFESSED WILLINGNESS TO COMPROMISE ON SUCH ISSUES AS THE PREMIUM CAPS WASN'T PARTICULARLY USEFUL IN RESPONSE MR. CLINTON LATER SAID I WOULD CAUTION SENATOR ROCKEFELLER TO NOT THINK THAT I HAVE LEFT HIS POSITION IF WE CHANGE POSITIONS HE AND I WE'RE GOING TO TRY AND DO IT TOGETHER JEFFREY H. BIRNBAUM AND MICHAEL K. FRISBY CONTRIBUTED TO THIS ARTICLE ALLIEDSIGNAL INCORPORATED AND SEXTANT AVIONIQUE BROKE OFF TALKS ON A JOINT VENTURE IN AVIONICS SAYING THEY COULDN'T FIND A WAY TO INTEGRATE THEIR AVIONICS BUSINESSES WHEN THE COMPANIES ANNOUNCED PLANS TO MERGE THEIR AVIONICS OPERATIONS LAST AUGUST ANALYSTS SAID INCREASING COMPETITION IN THE INDUSTRY NECESSITATED SUCH A MERGER STILL SOME AEROSPACE EXPERTS QUESTIONED THE PLANNED MERGER SAYING THE CORPORATE CULTURES OF THE TWO COMPANIES CLASHED BUT ALLIEDSIGNAL SAID MERGER TALKS UNRAVELED BECAUSE THE TWO COMPANIES COULDN'T AGREE ON HOW TO INCORPORATE SEXTANT'S MILITARY OPERATIONS THE JOINT VENTURE WOULD HAVE HAD TOTAL SALES OF ABOUT ONE BILLION DOLLARS A YEAR THE COMPANIES SAID SEXTANT AVIONIQUE A FRENCH CONCERN CREATED IN NINETEEN EIGHTY NINE PRODUCES ELECTRONICS AND COMPUTERS FOR AIRCRAFT ALLIEDSIGNAL BASED IN MORRIS TOWNSHIP N. J. MAKES AEROSPACE AND AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS NORTHROP CORPORATION REPORTED A FOURTH QUARTER LOSS BECAUSE OF A LARGER THAN EXPECTED LOSS PROVISION OF ONE HUNDRED SEVEN MILLION DOLLARS OR TWO DOLLARS AND EIGHTEEN CENTS A SHARE FOR THE CLASSIFIED TRI SERVICE STANDOFF ATTACK MISSILE THE LOS ANGELES COMPANY RECORDED A FOURTH QUARTER LOSS OF THIRTY FIVE MILLION DOLLARS OR SEVENTY THREE CENTS A SHARE COMPARED WITH EARNINGS OF FIFTY FIVE MILLION DOLLARS OR ONE DOLLAR AND SEVENTEEN CENTS A SHARE IN THE FOURTH QUARTER OF NINETEEN NINETY TWO THE PRETAX LOSS PROVISION WAS ONE HUNDRED SIXTY FOUR MILLION DOLLARS NORTHROP'S SALES FOR THE NINETEEN NINETY THREE QUARTER FELL SEVENTEEN PERCENT TO ONE POINT TWO SIX BILLION DOLLARS FROM ONE POINT FIVE ONE BILLION DOLLARS A YEAR EARLIER THE COMPANY ATTRIBUTED THE LATEST LOSS PROVISION FOR THE FIXED PRICE MISSILE PROGRAM TO RISING COSTS OF DEVELOPMENT IN ALL THE COMPANY HAS MADE LOSS PROVISIONS OF SIX HUNDRED THREE MILLION DOLLARS FOR THE PROGRAM NORTHROP STOCK ROSE ONE DOLLAR OR TWO POINT SIX PERCENT TO CLOSE AT THIRTY NINE POINT EIGHT SEVEN FIVE DOLLARS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY HERITAGE MEDIA CORPORATION DALLAS SAID A HALLMARK CARDS INCORPORATED UNIT IS CONSIDERING SELLING ITS FIFTEEN POINT SEVEN PERCENT STAKE IN THE TELEVISION RADIO AND MARKETING CONCERN THROUGH A SECONDARY OFFERING ACCORDING TO A STATEMENT FROM HERITAGE THE KANSAS CITY MISSOURI GREETING CARD COMPANY SAID IT IS CONSIDERING THE SALE TO FOCUS ON ITS CORE BUSINESSES THE ANNOUNCEMENT WAS MADE AFTER THE STOCK MARKET CLOSED YESTERDAY IN AMERICAN STOCK EXCHANGE TRADING HERITAGE SHARES FELL THIRTY SEVEN POINT FIVE CENTS TO TWENTY POINT SIX TWO FIVE DOLLARS AT THAT PRICE HALLMARK'S STAKE TOTALING TWO POINT SEVEN MILLION SHARES WOULD FETCH FIFTY FIVE POINT SEVEN MILLION DOLLARS HALLMARK WAS ONE OF HERITAGE'S ORIGINAL INVESTORS IN NINETEEN EIGHTY EIGHT SEPARATELY HERITAGE REPORTED THAT ITS PROFIT FELL TWENTY FOUR PERCENT IN THE FOURTH QUARTER TO FOUR POINT NINE MILLION DOLLARS OR TWENTY CENTS A SHARE FROM SIX POINT FOUR MILLION DOLLARS OR TWENTY NINE CENTS A SHARE A YEAR EARLIER REVENUE ROSE ELEVEN PERCENT TO NINETY SEVEN POINT NINE MILLION DOLLARS FROM EIGHTY SEVEN POINT EIGHT MILLION DOLLARS PACE AMERICAN GROUP INCORPORATED SAID ITS BOARD HAS BEGUN AN INVESTIGATION INTO CHARGES THAT CERTAIN FORMER AND PRESENT MEMBERS OF SENIOR MANAGEMENT HAVE QUOTE ENGAGED IN IMPROPER TRANSACTIONS INVOLVING BUSINESS OF THE COMPANY QUOTE THE SURETY BOND COMPANY SAID IN TUCSON ARIZONA THAT TWO TOP OFFICERS HAVE TAKEN VOLUNTARY LEAVES OF ABSENCE TO FACILITATE THE INVESTIGATION THEY ARE DON H. PACE PRESIDENT AND CHIEF EXECUTIVE OFFICER AND GREG S. KAPLAN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FRANK J. BARRETT A DIRECTOR WAS NAMED INTERIM PRESIDENT AND CHIEF EXECUTIVE DURING THE INVESTIGATION STEVEN L. RAMSEY A CERTIFIED PUBLIC ACCOUNTANT WAS NAMED INTERIM SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THE COMPANY SAID IT HAS REACHED NO CONCLUSIONS AS TO THE TRUTH OF THE ALLEGATIONS IT DECLINED TO COMMENT FURTHER THE JUSTICE DEPARTMENT IS EXPECTED TO INFORM COMMERCE SECRETARY RONALD BROWN THIS WEEK THAT IT HASN'T FOUND ANY EVIDENCE TO SUPPORT CHARGES THAT HE SOUGHT A BRIBE TO INFLUENCE U. S. POLICY TOWARD VIETNAM A LETTER FROM DEPARTMENT OFFICIALS TO MR. BROWN PROBABLY WILL BE SENT WITHIN A FEW DAYS A CLINTON ADMINISTRATION OFFICIAL SAID INVESTIGATORS WEEKS AGO CONCLUDED THERE WASN'T ANY BASIS FOR CHARGING MR. BROWN BUT TOP DEPARTMENT OFFICIALS WANTED TO BE CERTAIN THAT ALL POSSIBILITIES HAD BEEN THOROUGHLY CHECKED BEFORE CLEARING THE SECRETARY MR. BROWN'S SOLE ACCUSER LY THANH BINH TOLD REPORTERS AND FEDERAL AGENTS THAT MR. BROWN WANTED SEVEN HUNDRED THOUSAND DOLLARS PLUS OIL AND GAS ROYALTIES FOR HIS ASSISTANCE IN IMPROVING TRADE RELATIONS BETWEEN THE U. S. AND VIETNAM MR. BINH WAS A BUSINESS PARTNER WITH NGUYEN VAN HAO A FORMER SOUTH VIETNAMESE OFFICIAL WHO MR. BINH SAID WAS THE MIDDLEMAN BETWEEN MR. BROWN AND VIETNAMESE GOVERNMENT AUTHORITIES MR. BROWN ACKNOWLEDGED MEETING WITH MR. HAO ON THREE OCCASIONS FROM NOVEMBER NINETEEN NINETY TWO TO JANUARY NINETEEN NINETY THREE INCLUDING ONCE IN THE SECRETARY'S COMMERCE DEPARTMENT OFFICE MR. HAO HAS DENIED MR. BINH'S ALLEGATIONS AND MR. BINH ACKNOWLEDGED THAT HE HAD NEVER TALKED TO MR. BROWN AND HAD NO FIRST HAND INFORMATION THAT MR. BROWN IMPROPERLY SOLICITED VIETNAMESE BUSINESS AMGEN INCORPORATED'S FOURTH QUARTER NET INCOME FELL THIRTY TWO PERCENT TO NINETY ONE POINT ONE MILLION DOLLARS OR SIXTY FOUR CENTS A SHARE FROM THE YEAR EARLIER QUARTER IN WHICH IT RECORDED A HEFTY LEGAL AWARD THE RESULTS WERE IN LINE WITH ANALYSTS' ESTIMATES AND EASED INVESTOR FEARS ABOUT WEAK SALES OF ITS NEUPOGEN CANCER TREATMENT DRUG IN THE PRIOR YEAR THE THOUSAND OAKS CALIFORNIA BASED BIOTECHNOLOGY CONCERN HAD NET INCOME OF ONE HUNDRED THIRTY THREE POINT EIGHT MILLION DOLLARS OR NINETY ONE CENTS A SHARE THAT AMOUNT INCLUDED FIFTY POINT NINE MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE FROM THE LEGAL AWARD REVENUE ROSE EIGHTEEN POINT SIX PERCENT TO THREE HUNDRED SIXTY FIVE POINT SIX MILLION DOLLARS FROM THREE HUNDRED EIGHT POINT TWO MILLION DOLLARS AMGEN SAID IN A REPORT ISSUED AFTER THE MARKET CLOSED YESTERDAY AMGEN CLOSED AT FORTY SEVEN DOLLARS DOWN ONE DOLLAR AND SEVENTY FIVE CENTS IN NASDAQ STOCK MARKET TRADING YESTERDAY FOR ALL OF NINETEEN NINETY THREE AMGEN NET INCOME ROSE SEVEN POINT TWO PERCENT TO THREE HUNDRED EIGHTY THREE POINT THREE MILLION DOLLARS OR TWO DOLLARS AND SIXTY SEVEN CENTS A SHARE FROM THREE HUNDRED FIFTY SEVEN POINT SIX MILLION DOLLARS OR TWO DOLLARS AND FORTY THREE CENTS A SHARE REVENUE ROSE TWENTY FIVE POINT SEVEN PERCENT TO ONE POINT THREE SEVEN BILLION DOLLARS FROM ONE POINT OH NINE BILLION DOLLARS BENEFICIAL CORPORATION SAID FOURTH QUARTER EARNINGS ALMOST DOUBLED AIDED BY A SHARP GAIN IN RECEIVABLES GROWTH AND IMPROVED CREDIT QUALITY THE CONSUMER FINANCE BANKING AND INSURANCE COMPANY BASED IN WILMINGTON DELAWARE SAID NET INCOME ROSE TO FORTY THREE POINT THREE MILLION DOLLARS OR EIGHTY CENTS A SHARE FROM TWENTY TWO POINT SEVEN MILLION DOLLARS OR FORTY ONE CENTS A SHARE A YEAR EARLIER THE NINETEEN NINETY TWO FIGURE INCLUDES A LOSS OF SIX HUNDRED THOUSAND DOLLARS OR ONE CENT A SHARE FROM DISCONTINUED OPERATIONS PER SHARE FIGURES REFLECT A TWO FOR ONE STOCK SPLIT EFFECTIVE DECEMBER FIFTEENTH FINANCE RECEIVABLES AT YEAR END TOTALED ELEVEN POINT OH TWO BILLION DOLLARS UP FIFTEEN PERCENT FROM NINE POINT FIVE NINE BILLION DOLLARS A YEAR EARLIER AND THE ALLOWANCE FOR CREDIT LOSSES WAS TWO POINT FIVE THREE PERCENT DOWN FROM TWO POINT SEVEN FOUR PERCENT A YEAR EARLIER THE COMPANY SAID THE YEAR END LOSS RESERVE QUOTE REMAINS QUITE CONSERVATIVE BOTH ON AN ABSOLUTE BASIS AND RELATIVE TO NET CHARGE OFFS QUOTE IT IS TWENTY SIX DEGREES BELOW ZERO IN THE SUN VAPOR RISES FROM THE SOLID SLAB OF ICE THAT IS LARRY SUTTON'S HILLSIDE DRIVEWAY IN NINETEEN EIGHTY EIGHT THIS PINE SCENTED TOWN IN THE BERKSHIRE HILLS WAS RATED THE TWENTY SIXTH BEST PLACE TO LIVE BY PSYCHOLOGY TODAY MAGAZINE QUOTE THAT'S NICE QUOTE SAYS MR. SUTTON BUNDLED UP IN MUFFLER DOWN JACKET AND A DEER HUNTER'S CAP RIGHT NOW I'LL SETTLE FOR ANY TOWN WITH TRACTION MR. SUTTON PERCHED ATOP A SNOW BANK IS SCATTERING BIRD SEED IN THE DRIVEWAY NOT TO GIVE HIS FEATHERED FRIENDS A NIBBLE BUT TO GIVE THE GROUND SOME BITE AS HE DESCENDS FROM THE MOUND MR. SUTTON TAKES TWO STEPS AND GOES DOWN ON HIS BUM REACHING INTO A FIFTY POUND BAG OF NATURAL FRUIT N. BERRY BIRD FOOD HE CASTS A FEW MORE HANDFULS ONTO THE FROZEN TERRAIN FACING A DEEP FREEZE THAT HAS TURNED ENTIRE TOWNS INTO ICE RINKS AND BROUGHT WITH IT A SHORTAGE OF SALT AND SAND FRUSTRATED NORTHEASTERNERS ARE HURLING AN ARRAY OF ODD SUBSTANCES AT THE GROUND IN A SOMETIMES FUTILE BID FOR FOOTING SUPERMARKETS AND HARDWARE STORES REPORT A RUN ON CAT LITTER ASHES ANTI ICE AGENTS FROM BEFORE THE DAYS OF PACKAGED GOODS ARE MAKING A STRONG COMEBACK THE LIST OF ANTISKID SUBSTITUTES HAS BEEN FOR THE MOST PART ORGANIC ENVIRONMENTALLY CORRECT AND LIMITED ONLY BY THE IMAGINATION FERTILIZER SEAWEED DIRT FISH NETS SAWDUST CINDERS WOOD CHIPS AND BURLAP SOME OF THIS SUBSTITUTE STUFF WORKS LIKE CAT LITTER AND ASHES BUT OTHER THINGS I'M NOT SO SURE ABOUT SAYS JOE PICARD AT THE DEPARTMENT OF PUBLIC WORKS IN WORCESTER MASSACHUSETTS I'M NOT SAYING THESE PEOPLE ARE CRAZY IN FACT I'D CALL IT YANKEE INGENUITY TO SOME THIS ISN'T A LAUGHING MATTER THE NATIONAL SAFETY COUNCIL IN CHICAGO WHICH KEEPS TRACK OF ACCIDENTAL DEATHS WARNS THAT THE HIGHEST NUMBER OF CASUALTIES OCCURS IN JANUARY WHEN AN AVERAGE OF MORE THAN ONE THOUSAND PEOPLE DIE FROM FALLS OUTSIDE THE HOME SNOW AND ICE ARE CHIEF CULPRITS QUOTE I FEEL IT IS THE DUTY OF EACH HEAD OF HOUSEHOLD IN THE NORTHEAST TO PROVIDE HIS FAMILY WITH A ROOF OVER THEIR HEAD FOOD IN THEIR BELLY AND GOOD FOOTING IN THE WINTER QUOTE SAYS ANTONIO GALLI OF PORT CHESTER N. Y. EVERY TIME I STEP OUT OF THE HOUSE THESE DAYS IT'S AN ICE JUNGLE OUT THERE SPOILED BY FIVE YEARS OF RELATIVELY MILD WINTERS MERCHANTS HAVE BEEN CAUGHT OFFGUARD BY ARCTIC CONDITIONS IT HAS AVERAGED ABOUT TWENTY DEGREES BELOW NORMAL FOR THIS TIME OF YEAR WITH NEW RECORD LOWS SET IN MANY NORTHEASTERN CITIES IN LANCASTER PENNSYLVANIA PEOPLE HAVE POURED INTO STORES DURING BREAKS IN THE WEATHER TO BUY UP JUST ABOUT EVERYTHING IN GARDEN SUPPLIES INCLUDING PLAIN OLD DIRT SAYS JOHN SNYDER GARDEN DEPARTMENT MANAGER AT STAUFFER'S OF KISSEL HILLS DIRT MUST BE HELPING BECAUSE WE KEEP RUNNING OUT OF STOCK PENNI'S SUPERMARKET IN MARBLEHEAD MASSACHUSETTS HAS BEEN OUT OF ROCK SALT FOR TWO WEEKS ALTHOUGH CAT LITTER SUPPLIES HAVE BEEN REPLENISHED MANAGER STEPHEN MURPHY SPARED CUSTOMERS THE TRAUMA OF FIGHTING OVER THE LAST BAG OF SALT I SNATCHED IT UP MYSELF SALT MAKERS ASSURE THAT THE SALT IS ON ITS WAY THOUGH IMPATIENT RETAILERS LIKE MR. MURPHY SAY IT SOUNDS LIKE THE PROVERBIAL CHECK IN THE MAIL AT AKZO SALT INCORPORATED A UNIT OF AKZO N. V. OF THE NETHERLANDS WE HAVE THE SALT SAYS ROBERT JONES VICE PRESIDENT OF MARKETING FOR THE HIGHWAY CHEMICAL DIVISION IN CLARKS SUMMIT PENNSYLVANIA THE COMPANY'S SALT MINES IN THE U. S. AND ABROAD HAVE BEEN WORKING NONSTOP HE ADDS BUT QUOTE WE JUST CAN'T GET IT TO THE STORES AS QUICKLY QUOTE MR. JONES SAYS AN ARMADA OF TWENTY SHIPS IS SPEEDING TO THE EAST COAST FROM SOUTH AMERICA AND THE CARIBBEAN WITH HALF A MILLION TONS OF SALT NEW YORKERS CAN ILL AFFORD THE WAIT UNDER CITY REGULATIONS SNOW AND ICE MUST BE REMOVED FROM SIDEWALKS BY MERCHANTS AND RESIDENTS WITHIN FOUR HOURS OF A SNOW STORM UNLESS THE STORM ENDS LATER THAN NINE P. M. FINES RANGE FROM FIFTY DOLLARS TO ONE HUNDRED DOLLARS WHEN THE ICE IS UNMELTABLE AS HAS BEEN THE CASE IN THE PAST FEW WEEKS THE CITY'S SANITATION DEPARTMENT ACTION CENTER RECOMMENDS STREWING ASHES SAND SAWDUST OR CAT LITTER LITTERING LAWS WILL NOT BE ENFORCED IN THE EMERGENCY THE DEPARTMENT ASSURES IN A PINCH USE KOSHER SALT WHICH HAS LARGER GRAINS THAN AVERAGE TABLE SALT ADVISES BRUCE BERTRAM TECHNICAL DIRECTOR FOR THE SALT INSTITUTE AN ASSOCIATION OF SALT MANUFACTURERS WHAT WORKS BEST HOWEVER IS A MATTER OF DEBATE AT THE PARK SQUARE GRILL IN DOWNTOWN PITTSFIELD CONVERSATION ONE RECENT EVENING CENTERED ON ROADS SO SLIPPERY THAT POLICE AREN'T CHASING SPEEDING MOTORISTS AND ON WHAT WORKS ON SIDEWALKS JOSH SIGUARD A KITCHEN TILE SPECIALIST LIKES FERTILIZER PARTICULARLY UREA WHICH OCCURS NATURALLY IN ANIMAL URINE AND IS ALSO AVAILABLE IN CRYSTALLIZED FORM IT'S GREAT FOR LAWNS UNDERNEATH THE SNOW MR. SIGUARD ARGUES BETWEEN ROUNDS OF VIDEO TRIVIA GAMES JACK DUFFY A FRIEND LIKES BURLAP WHEN I GO BRRR I THINK OF BURLAP SAYS THE PISTACHIO CONNOISSEUR WHO SAVES THE SACKS IN WHICH THE NUTS ARE SOLD IT'S LIKE WALKING ON A BRILLO PAD BUT THE FAVORITE SALT SUBSTITUTE SEEMS TO BE CAT LITTER BEFORE SELLING HIS PIZZA EXPRESS SHOP IN GLEN BURNIE MARYLAND EARLIER THIS MONTH KEN CLARK ISSUED FIFTY POUND BAGS OF CAT LITTER TO HIS DRIVERS SO THEY COULD THROW IT ON ROADS OR CUSTOMERS' WALKS TO MAKE DELIVERIES IT'S GOOD FOR PEOPLE IN A HURRY HE SAYS BIRD SEED OF COURSE HAS THE UNIQUE FRINGE BENEFIT OF FEEDING QUOTE A HANDFUL OF FOOLHARDY WORM STARVED BIRDS THAT HAVEN'T MIGRATED SOUTH QUOTE SAYS PITTSFIELD'S MR. SUTTON JOE LOGAN WHO FISHES OFF THE STARSHIP OUT OF BOSTON LIKES SEAWEED BEST IT LITTERS THE DECKS AND SIDES OF BOATS AS HE ANCHORS UP AND DOWN THE NORTHEASTERN COAST WAITING FOR THE ICE IN THE HARBORS TO THAW SAYS MR. LOGAN SEAWEED IS SALT RICH HE NOTES BUT I ALSO LAY DOWN MY IDLE NETS FOR EXTRA SAFETY IF STILL CONFUSED ABOUT THE VARIOUS MERITS OF STREWN DETRITUS THE WINTER WEARY MAY WRITE AWAY TO DOW CHEMICAL COMPANY FOR BOOKLETS INCLUDING WHAT ARE THE HOTTEST DE ICERS ON THE MARKET AND GET A GRIP ON WINTER SAYS SPOKESMAN DOUG BROWNFIELD WE'RE IN AN UNPRECEDENTED THIRD RUN THIS WINTER INTERNATIONAL MUSTO EXPLORATIONS LIMITED SUED METALL MINING CORPORATION FOR ALLEGEDLY UNLAWFULLY SOLICITING SHARES OF MUSTO PRIOR TO METALL'S PLANNED TAKEOVER BID FOR MUSTO MUSTO A VANCOUVER BRITISH COLUMBIA COMPANY THAT HOLDS A LARGE COPPER AND GOLD DEPOSIT IN ARGENTINA FILED A SUIT IN A BRITISH COLUMBIA COURT AGAINST METALL AND MCLEAN MCCARTHY INCORPORATED A TORONTO INVESTMENT DEALER THE SUIT ALLEGES THAT MCLEAN MCCARTHY UNLAWFULLY PROVIDED INFORMATION ABOUT MUSTO'S SHAREHOLDERS TO METALL INCLUDING THE INVESTMENT OBJECTIVES OF SOME SHAREHOLDERS A METALL OFFICIAL SAID MCLEAN MCCARTHY DIDN'T PROVIDE ANY UNLAWFUL INFORMATION TO METALL MCLEAN MCCARTHY OFFICIALS WEREN'T AVAILABLE FOR COMMENT THE SHARE PRICE OF BANCO ESPANOL DE CREDITO KNOWN AS BANESTO PLUMMETED FIFTY SEVEN PERCENT YESTERDAY AS IT RESUMED TRADING AFTER BEING SUSPENDED FOR MORE THAN A MONTH THE SHARES CLOSED AT EIGHT HUNDRED FIFTY FIVE PESETAS SIX DOLLARS AND ELEVEN CENTS IN HEAVY TRADING SINKING FROM THEIR PREVIOUS CLOSE OF ONE THOUSAND NINE HUNDRED NINETY FIVE PESETAS DECEMBER TWENTY EIGHTH THE DAY THE SPANISH CENTRAL BANK DISMISSED THE BOARD AND ASSUMED CONTROL OF THE TROUBLED BANK STILL MARKET ANALYSTS IN MADRID SAID THE BANESTO SHARES FARED BETTER THAN MANY HAD EXPECTED LAST WEEK SOME ANALYSTS WERE SPECULATING THAT THE STOCK COULD FALL AS MUCH AS SEVENTY FIVE PERCENT WHEN TRADING RESUMED QUOTE NO ONE WAS EXPECTING IT TO GO THIS HIGH QUOTE SAID JAVIER SUNYE SENIOR SALESMAN AT MADRID BROKERAGE CONCERN BENITO Y. MONJARDIN SVB PEOPLE ARE JUST TAKING POSITIONS FOR THE SHORT TERM SPECULATING WITH THE STOCK MANY ANALYSTS AGREED THAT THERE'S NOT ENOUGH INFORMATION TO HELP SHAREHOLDERS DECIDE WHAT TO DO WITH THEIR BANESTO SHARES AND THEY SUSPECT THAT SMALL SHAREHOLDERS ARE CONFUSED THE BIG QUESTIONS LOOMING ARE THE DETAILS OF A ONE HUNDRED EIGHTY BILLION PESETA RIGHTS ISSUE AS WELL AS A SHAREHOLDERS MEETING SCHEDULED FOR MARCH AND WHETHER SOME OTHER BANK WILL ACQUIRE BANESTO ANALYSTS AND DEALERS AGREED THAT TRADING IN THE COMING DAYS COULD BE RADICALLY DIFFERENT FROM THE FIRST DAY AS THE SHAREHOLDERS WHO HELD BANESTO STOCK BEFORE IT WAS TAKEN OVER BECOME MORE ACTIVE IN THE MARKET WE DON'T KNOW WHAT THE MAN ON THE STREET IS THINKING AND THAT'S WHO REALLY COUNTS NOW SAID ANA BELEN COLMENERO A BANKING ANALYST AT MAXWELL ESPINOSA AVB IN MADRID A TEAM LED BY BANCO BILBAO VIZCAYA VICE CHAIRMAN ALFREDO SAENZ IS IN CHARGE OF DRAWING UP A RESTRUCTURING PLAN FOR BANESTO DOCTOR BERNADINE HEALY'S ARTICLE QUOTE MAMMOGRAMS YOUR BREASTS YOUR CHOICE QUOTE EDITORIAL PAGE DECEMBER TWENTY EIGHTH CLEARLY OUTLINED THE WEAKNESSES IN THE RECENT DECISIONS THAT HAVE ELIMINATED SUPPORT FOR BREAST CANCER SCREENING FOR WOMEN AGES FORTY TO FORTY NINE DOCTOR LEE F. NEWCOMER'S LETTER TO THE EDITOR CRITICAL OF DOCTOR HEALY'S REVIEW THE MAMMOGRAPHY CONTROVERSY JANUARY NINETEENTH IS AN EXAMPLE OF HOW HEALTH PLANNERS WILL USE WHAT THEY HAVE READ WITHOUT DETERMINING THE ACCURACY OF THE ANALYSES TO MAKE MAJOR HEALTH POLICY DECISIONS DOCTOR NEWCOMER'S STATEMENT THAT THE EIGHT TRIALS FAILED TO SHOW ANY BENEFIT IS SIMPLY INCORRECT IN FACT ONE OUT OF THE EIGHT TRIALS HAVE SHOWN THAT MAMMOGRAPHY SCREENING CAN REDUCE DEATHS FROM BREAST CANCER FOR WOMEN AGES FORTY TO FORTY NINE BY TWENTY TWO PERCENT AS IN THE EDINBURGH TRIAL TO AS MUCH AS FORTY NINE PERCENT IN THE MALMO TRIAL THE REASON THE DATA ARE NOT STATISTICALLY SIGNIFICANT IS THAT MATHEMATICALLY THEY CANNOT BE SIGNIFICANT EVEN THE NATIONAL CANCER INSTITUTE HAS ACKNOWLEDGED THAT THERE HAVE NOT BEEN ENOUGH WOMEN IN THE TRIALS AGES FORTY TO FORTY NINE TO PERMIT THE RESULTS TO BE STATISTICALLY SIGNIFICANT DOCTOR NEWCOMER'S COMMENTS ARE BASED ON OLD DATA THE SWEDISH TRIAL THAT HE CITED AS SHOWING EXCESS DEATHS AMONG SCREENED WOMEN IS THE MALMO TRIAL WHICH DEMONSTRATES A FORTY NINE PERCENT REDUCTION IN BREAST CANCER DEATHS FOR WOMEN AGES FORTY TO FORTY NINE THERE IS AMPLE EVIDENCE THAT NOTHING MAGICAL HAPPENS AT AGE FIFTY THAT SUDDENLY ALLOWS SCREENING TO WORK IF ALL OF THE AVAILABLE DATA ARE REVIEWED THERE IS CLEARLY A BENEFIT FOR SCREENING WOMEN AGES FORTY TO FORTY NINE AS THERE IS FOR WOMEN AGES FIFTY TO FIFTY NINE AS NATIONAL MEDICAL DIRECTOR FOR A LARGE HEALTH CARE ORGANIZATION DOCTOR NEWCOMER SHOULD HEED HIS OWN ADVICE FROM MARK TWAIN CONCERNING HALF EDUCATED PHYSICIANS HE AND HIS COLLEAGUES HAVE A RESPONSIBILITY TO THOSE WHOSE CARE THEY DETERMINE TO KNOW AND UNDERSTAND THE MOST RECENT SCIENTIFIC INFORMATION IN A LETTER TO THE EDITOR YESTERDAY ON BREAST CANCER THERE WAS A SIGNIFICANT TYPOGRAPHICAL ERROR IN ONE SENTENCE IT SHOULD HAVE READ QUOTE IN FACT FIVE OUT OF THE EIGHT TRIALS HAVE SHOWN THAT MAMMOGRAPHY SCREENING CAN REDUCE DEATHS FROM CANCER FOR WOMEN AGES FORTY TO FORTY NINE BY TWENTY TWO PERCENT AS IN THE EDINBURGH TRIAL TO AS MUCH AS FORTY NINE PERCENT IN THE MALMO TRIAL QUOTE PRESIDENT CLINTON COULD ANNOUNCE THIS WEEK THAT HE HAS DECIDED TO LIFT THE U. S. TRADE EMBARGO ON VIETNAM ACCORDING TO A SENIOR U. S. OFFICIAL MR. CLINTON'S SENIOR ADVISERS IN DECEMBER RECOMMENDED SUCH A MOVE BASED ON WHAT THEY SAW AS HANOI'S INCREASING COOPERATION IN EFFORTS TO HELP THE U. S. RESOLVE CASES OF UNACCOUNTED FOR U. S. SOLDIERS FROM THE VIETNAM WAR IN A BIPARTISAN VOTE LAST WEEK THE SENATE APPROVED A NONBINDING RESOLUTION CALLING FOR LIFTING THE NINETEEN YEAR OLD EMBARGO A SENIOR OFFICIAL SAID LAST NIGHT THAT WHILE MR. CLINTON HASN'T MADE A FINAL DECISION QUOTE THINGS ARE TENDING IN THAT DIRECTION QUOTE U. S. OFFICIALS ACKNOWLEDGE THAT THE DECISON IS AN EMOTIONAL AND DIFFICULT ONE FOR MR. CLINTON WHO AVOIDED MILITARY SERVICE IN THE VIETNAM WAR SEVERAL GROUPS THAT REPRESENT FAMILIES OF THOSE MISSING OR UNACCOUNTED FOR FROM THE WAR STRONGLY OPPOSE LIFTING THE EMBARGO AT THIS TIME THESE GROUPS BELIEVE THAT VIETNAM SHOULDN'T BE REWARDED BECAUSE ITS LEADERS STILL ARE HOLDING BACK INFORMATION OR REMAINS OF SERVICEMEN KILLED IN VIETNAM ON THE OTHER HAND THERE IS PRESSURE ON THE WHITE HOUSE TO LIFT THE EMBARGO FROM U. S. COMPANIES THAT BELIEVE THAT THEY ARE MISSING OUT ON A MARKET OF SEVENTY MILLION CONSUMERS IN A COUNTRY THAT HAS EXPERIENCED RAPID ECONOMIC GROWTH OVER THE PAST FEW YEARS NEARLY ALL OTHER NATIONS IGNORE THE U. S. EMBARGO AND ARE CARVING UP MARKETS IN VIETNAM TWO HOUSE COMMITTEE CHAIRMEN ASKED THE COMPTROLLER OF THE CURRENCY TO TAKE THE UNUSUAL STEP OF SEEKING PUBLIC COMMENT ON THE PROPOSED PURCHASE OF DREYFUS CORPORATION BY MELLON BANK CORPORATION COMPTROLLER EUGENE LUDWIG MUST APPROVE THE MERGER OF DREYFUS'S MUTUAL FUND BUSINESS INTO MELLON'S RETAIL BANKING OPERATIONS BUT DEMOCRATIC REPRESENTATIVES JOHN DINGELL OF MICHIGAN AND HENRY GONZALEZ OF TEXAS SAID THEY WANT MR. LUDWIG TO GIVE THE DEAL A WIDER AIRING MR. DINGELL CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE AND ITS SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS SAID HE WILL SCHEDULE HEARINGS ON THE TRANSACTION REPRESENTATIVE DINGELL AND REPRESENTATIVE GONZALEZ CHAIRMAN OF THE HOUSE BANKING COMMITTEE WANT MR. LUDWIG TO BRIEF THEM ON THE ACQUISITION BEFORE HE APPROVES IT THE TWO CHAIRMEN HAVE QUESTIONED THE TRANSACTION FOCUSING ON THE ABILITY OF FEDERAL BANKING REGULATORS TO ADEQUATELY ASSESS THE SECURITIES ACTIVITIES OF BANKS YESTERDAY THE TWO CHAIRMEN ASKED FOR MORE DOCUMENTS AND INFORMATION FROM MELLON DREYFUS AND MR. LUDWIG A SPOKESMAN FOR MELLON SAID THE BANK WILL RESPOND TO ANY QUESTIONS AND SAID IT IS CONFIDENT THE ACQUISITION OF DREYFUS WILL BE APPROVED AND COMPLETED JOHNSON AND JOHNSON SAID FOURTH QUARTER NET INCOME ROSE NINE POINT ONE PERCENT MAINLY THROUGH COST CUTTING AND PRODUCTIVITY GAINS NET INCOME WAS THREE HUNDRED THIRTY FIVE MILLION DOLLARS OR FIFTY TWO CENTS A SHARE COMPARED WITH THREE HUNDRED SEVEN MILLION DOLLARS OR FORTY SEVEN CENTS A SHARE A YEAR AGO SALES FOR THE QUARTER WERE THREE POINT FIVE THREE BILLION DOLLARS UP SLIGHTLY FROM THREE POINT FIVE BILLION DOLLARS A YEAR EARLIER THE HEALTH CARE COMPANY WHICH IS BASED IN NEW BRUNSWICK N. J. SAID WITHOUT THE NEGATIVE IMPACT OF CURRENCY TRANSLATION WORLD WIDE SALES WOULD HAVE GROWN BY SEVEN PERCENT JOHNSON AND JOHNSON SAID IT WILL KEEP LOOKING FOR WAYS TO QUOTE RE ENGINEER QUOTE THE COMPANY AND SAID IT SEES MUCH OF ITS FUTURE GROWTH IN SUCH DEVELOPING MARKETS AS EASTERN EUROPE AND CHINA IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE JOHNSON AND JOHNSON STOCK CLOSED AT FORTY TWO POINT ONE TWO FIVE DOLLARS DOWN TWENTY FIVE CENTS FOR THE FULL YEAR NET INCOME ROSE SEVENTY FOUR PERCENT TO ONE POINT SEVEN NINE BILLION DOLLARS OR TWO DOLLARS AND SEVENTY FOUR CENTS A SHARE FROM ONE POINT OH THREE BILLION DOLLARS OR ONE DOLLAR AND FIFTY SIX CENTS A SHARE THE NINETEEN NINETY TWO RESULTS INCLUDED A FIVE HUNDRED NINETY FIVE MILLION DOLLAR CHARGE FOR ACCOUNTING CHANGES SALES FOR THE YEAR EDGED UP TWO POINT EIGHT PERCENT TO FOURTEEN POINT ONE FOUR BILLION DOLLARS THE NEW YORK STATE INSURANCE DEPARTMENT HAS BEGUN TO LOOK INTO WHETHER INSURANCE AGENTS WITH PRUDENTIAL INSURANCE COMPANY OF AMERICA SOLD LIMITED PARTNERSHIPS IN THE STATE WITHOUT THE PROPER LICENSE NEW YORK IS THE SECOND STATE TO EXPLORE WHETHER INSURANCE AGENTS IN ADDITION TO STOCKBROKERS SOLD THE PARTNERSHIPS THAT HAVE GOTTEN PRUDENTIAL'S BROKERAGE FIRM PRUDENTIAL SECURITIES INTO TROUBLE NEW YORK SAID IT IS GATHERING INFORMATION FOR WHAT COULD LEAD TO AN INVESTIGATION IN NINETEEN NINETY ONE OREGON ALLEGED THAT SOME PRUDENTIAL INSURANCE AGENTS SOLD THE PARTNERSHIPS WITHOUT THE PROPER LICENSE PRUDENTIAL EVENTUALLY SETTLED THE CHARGES THE U. S. ATTORNEY'S OFFICE IN MANHATTAN AND THE SECURITIES AND EXCHANGE COMMISSION ARE CURRENTLY INVESTIGATING WHETHER THE PRACTICE WAS WIDESPREAD PRUDENTIAL SAID IT KNOWS OF NO NEW YORK AGENTS WHO IMPROPERLY SOLD THE PARTNERSHIPS THE COMPANY SAID IT ROUTINELY RECEIVES INQUIRIES FROM STATE INSURANCE DEPARTMENTS THEY'RE POPPING UP ALL OVER THE SOUTHWEST AUTOMOBILE ORNAMENTS IN THE SHAPE OF TWO LEGGED FISH THAT LOOK LIKE THEY SWALLOWED THE WORD QUOTE DARWIN QUOTE THAT'S DARWIN AS IN CHARLES DARWIN THE EVOLUTIONIST THE SIX INCH LONG SILVERY PLASTIC BUMPER PLAQUES ARE A TONGUE IN CHEEK OFFSHOOT OF THEIR POPULAR FISH SHAPED COUSINS WHICH ADORN THE REAR PANELS OF MANY CARS AS A TRADITIONAL SYMBOL OF CHRISTIAN FAITH BUT FINDING DARWIN IS A TASK FOR THE FITTEST THE CREATURE IS MADE BY EVOLUTION DESIGN A ONE WOMAN AUSTIN TEXAS COMPANY THAT DOESN'T ADVERTISE SO FOLKS HAVE TO RELY ON WORD OF MOUTH OR DETECTIVE WORK TO TRACK DOWN THEIR PREY ALEX KARASIK A STUDENT IN BERKELEY CALIFORNIA CRAVED ONE HE FINALLY SAW A WOMAN SLEEPING IN HER DARWIN DECORATED CAR AND BANGED ON THE WINDOW TO FIND OUT WHERE SHE BOUGHT HERS ANSWER DARK CARNIVAL A BERKELEY SCIENCE FICTION BOOKSTORE THAT SELLS ABOUT ONE HUNDRED A WEEK AT FOUR DOLLARS AND NINETY FIVE CENTS EACH OTHER DARWIN DECORATED PRODUCTS INCLUDE LAPEL PINS AND T. SHIRTS ONE OF WHICH SAYS ON THE BACK SUPPORT THE THEORY OF EVOLUTION FOUR HUNDRED BILLION AMPHIBIANS CAN'T ALL BE WRONG SOME PEOPLE TAKE OFFENSE PARRIS MCBRIDE WHOSE NINETEEN EIGHTY ONE JEEP SPORTS A DARWIN SAYS AN ANGRY STRANGER CONFRONTED HER IN A PARKING LOT AND TOLD HER SHE WAS UN CHRISTIAN A DARK CARNIVAL CUSTOMER FOUND HIS BUMPER PLAQUE BROKEN IN PIECES AND PROMPTLY BOUGHT TEN MORE BUT ONE MAKER OF CHRISTIAN FISH DOESN'T MIND THE TAKEOFF I DON'T NECESSARILY AGREE BUT THAT'S FINE SAYS WALT MARKUS WHOSE GATEWAY PRESS INCORPORATED IN MURPHYS CALIFORNIA MAKES SEVERAL VARIATIONS OF THE ORIGINAL FISH WHEN SOMEONE COPIES YOUR IDEA IT'S A NICE FORM OF FLATTERY DESIGNATRONICS INCORPORATED SAID IT SET UP A DIVISION TO MARKET COMPONENTS MADE BY JAPAN'S KOHARA GEAR COMPANY DESIGNATRONICS ALSO SAID IT EXPECTS HIGHER FISCAL SECOND QUARTER SALES AND EARNINGS FROM CONTINUING OPERATIONS DESIGNATRONICS BASED IN NEW HYDE PARK N. Y. MAKES SMALL MECHANICAL ELECTROMECHANICAL AND AUTOMATION COMPONENTS IT SAID IN A MEETING WITH ANALYSTS THAT ITS NEW QUALITY TRANSMISSION COMPONENTS DIVISION WILL MARKET LARGER COMPONENTS FROM KOHARA MARTIN HOFFMAN DESIGNATRONICS' CHIEF EXECUTIVE SAID HE EXPECTS AN EARNINGS INCREASE OF AT LEAST TEN PERCENT FROM CONTINUING OPERATIONS FOR THE FISCAL SECOND QUARTER ENDING FEBRUARY TWENTY EIGHTH THE COMPANY HAD EARNINGS OF TWO HUNDRED FIFTY NINE THOUSAND DOLLARS FROM CONTINUING OPERATIONS ON SALES OF FIVE POINT SEVEN MILLION DOLLARS A YEAR EARLIER A EUROPEAN UNION ADVISORY PANEL WHICH HAS STUDIED THE AIRLINE INDUSTRY SINCE LAST JULY URGED THE E. U. TO GET TOUGHER ON SUBSIDIES TO STATE OWNED CARRIERS AND ENCOURAGE DEREGULATION THE COMMITTEE'S REPORT WHICH ISN'T BINDING ALSO RECOMMENDS HARMONIZING E. U. RULES THAT AFFECT THE AVIATION INDUSTRY ADOPTING A SINGLE POLICY REGARDING OPERATIONS BY NON E. U. AIRLINES AND GIVING CARRIERS MORE FAVORABLE TAX TREATMENT THE REPORT DREW JEERS FROM TRANSPORT UNIONS WHICH FEAR JOB LOSSES FROM GREATER GLOBAL COMPETITION AND IT FACES CERTAIN OPPOSITION FROM PROTECTIONIST POLITICIANS BUT THE INDUSTRY'S FREE MARKET WING PRAISED THE PANEL'S AVERSION TO NEW TAXES AND REGULATIONS AND DECLARED ITS REPORT A VICTORY FOR COMPETITION AND CONSUMERS STILL SOME INDUSTRY OFFICIALS CHARACTERIZED ONE OF THE PANEL'S RECOMMENDATIONS AS A RETREAT FROM STRICT FREE MARKET POLICIES IT WOULD ALLOW STATE OWNED AIRLINES ONE TIME CASH INJECTIONS OF STATE AID IN PURSUING RESTRUCTURINGS LEADING TO PRIVATIZATIONS CHINA SAID FOREIGN BUSINESSES LAST YEAR AGREED TO INVEST A RECORD ONE HUNDRED TEN POINT EIGHT FIVE BILLION DOLLARS IN THE COUNTRY A NINETY ONE PERCENT INCREASE FROM A YEAR EARLIER COMPLETED INVESTMENT LAST YEAR SOARED ONE HUNDRED THIRTY FIVE PERCENT TO TWENTY FIVE POINT SEVEN FIVE BILLION DOLLARS AND THE NUMBER OF PROJECTS INITIATED BY FOREIGN FUNDED FIRMS JUMPED SEVENTY ONE PERCENT TO EIGHTY THREE THOUSAND TWO HUNDRED SIXTY FIVE THE ECONOMIC DAILY SAID THE HUGE INCREASES REFLECTED FOREIGN COMPANIES' ENTHUSIASM ABOUT BUSINESS OPPORTUNITIES AND THE GOVERNMENT'S WILLINGNESS TO GRANT THEM GREATER MARKET ACCESS THE FOREIGN MONEY PUMPED INTO CHINA IN NINETEEN NINETY THREE ALONE EQUALED THE TOTAL FOR THE PREVIOUS FOURTEEN YEARS UNDER AN ECONOMIC MODERNIZATION DRIVE AUSTRALIA REVISED ITS ECONOMIC FORECASTS UNDERLINING A FASTER RECOVERY ANNUAL INFLATION COULD RUN AT TWO PERCENT RATHER THAN THE THREE POINT FIVE PERCENT ESTIMATED IN AUGUST AND THE BALANCE OF PAYMENTS DEFICIT MAY NARROW FOR THE YEAR ENDING JUNE THIRTIETH THE EXPORT PACED ECONOMY MAY EXPAND THREE POINT FIVE PERCENT UP FROM A FORECAST OF TWO POINT SEVEN FIVE PERCENT AND FROM TWO POINT FIVE PERCENT GROWTH LAST YEAR RETAIL SALES ARE UP EMPLOYMENT IS GROWING CONSUMER SENTIMENT IS HIGHER AND LENDING RATES LOWER STOCKS AND THE CURRENCY ARE STRONG AND BOND YIELDS ARE THE LOWEST IN A DECADE UNDER A PRIVATIZATION PLAN THE KUWAITI GOVERNMENT IS STUDYING SELLING OFF STATE ENTERPRISES WOULD TAKE FIVE YEARS THE PLAN INCLUDES SHEDDING STAKES VALUED AT TWO POINT SIX EIGHT BILLION DOLLARS IN SIXTY TWO COMPANIES AND PRIVATIZING SERVICES THAT ARE SUBSIDIZED OR PROVIDED FREE BY THE GOVERNMENT WHICH EMPLOYS MOST OF THE WORK FORCE KUWAIT WANTS TO TURN OVER POWER PRODUCTION TRANSPORTATION COMMUNICATIONS AND SOME OIL DEALINGS TO THE PRIVATE SECTOR KUWAIT'S ECONOMIC PROBLEMS SUCH AS A BUDGET DEFICIT WERE COMPLICATED BY A SHARP DROP IN FOREIGN INVESTMENT EARNINGS THAT HELPED BALANCE BUDGETS BEFORE THE GULF WAR THE INDIAN GOVERNMENT RAISED PRICES OF GASOLINE AND DIESEL FUEL BETWEEN SIX PERCENT AND ELEVEN PERCENT IN A BID TO CUT SUBSIDIES AND REDUCE ITS BUDGET DEFICIT AMONG ECONOMIC REFORMS AND PAY FOR HIGHER EXPLORATION AND MARKETING COSTS THE INCREASES WILL BOOST BUS AND CAB FARES AND PRICES OF MERCHANDISE TRANSPORTED BY TRUCKS INDIA IMPORTS FORTY THREE PERCENT OF ITS PETROLEUM AND TAXES IT HEAVILY THE FUEL ACTION CAME A DAY AFTER INCREASES IN REGULATED PRICES OF SUGAR WHEAT AND RICE SOLD THROUGH GOVERNMENT SHOPS TO ONE HUNDRED SIXTY MILLION POOR AND MIDDLE CLASS CUSTOMERS COPING WITH A NINE PERCENT ANNUAL INFLATION RATE THE INTERNATIONAL OLYMPIC COMMITTEE RECEIVED A RECORD TOTAL OF TEN POTENTIAL ENTRIES IN THE RACE TO HOST THE TWO THOUSAND TWO WINTER GAMES AT YESTERDAY'S DEADLINE NOTIFICATION OF PLANNED BIDS WERE FILED BY OLYMPIC GROUPS IN SALT LAKE CITY UTAH ALMA ALTA KAZAKHSTAN GRAZ AUSTRIA JACA SPAIN OESTERSUND SWEDEN POPRADTATRY SLOVAKIA SION SWITZERLAND SOCHI RUSSIA QUEBEC CANADA AND TARVISIO ITALY BIDS WILL BE PRESENTED LATER THIS YEAR AND THE HOST CHOSEN IN JUNE NINETEEN NINETY FIVE SHOPPERS IN BRITAIN PAY AN AVERAGE OF FORTY EIGHT PERCENT MORE THAN U. S. CONSUMERS DO FOR MANY OF THE SAME PRODUCTS A BUSINESSAGE MAGAZINE SURVEY FOUND GOODS WITH SUCH PRICE GAPS INCLUDE AUTOS COMPUTERS COMPACT DISKS AND CLOTHING THE BRITISH PRESS ASSOCIATION REPORTED AMONG THE FEW RELATIVE BARGAINS IN BRITAIN WERE CONDOMS AND THEATER TICKETS THE MAGAZINE TERMED SOME OF THE DIFFERENCES QUOTE STAGGERING QUOTE THE SAME BLUE JEANS WERE PRICED AT NINETY DOLLARS IN BRITAIN AND THIRTY DOLLARS IN THE U. S. DISPOSABLE CONTACT LENSES TWO HUNDRED TWENTY FIVE DOLLARS VERSUS EIGHTY SEVEN DOLLARS AND A TENNIS RACKET TWO HUNDRED TWENTY FIVE DOLLARS VERSUS DEFENDING THE PRICE DIFFERENCES ONE RETAILER SAID MANUFACTURERS USE THE U. S. FOR LAUNCHING PRODUCTS AND BRITAIN FOR MAKING PROFITS ANOTHER SAID PROPERTY PRICES MAKE GOODS MORE EXPENSIVE IN BRITAIN BUSINESSAGE SAID THE VARIOUS EXPLANATIONS DIDN'T STAND UP TO SCRUTINY THAILAND'S CABINET AGREED IN PRINCIPLE TO PROCEED WITH AN AMBITIOUS LONG DELAYED ELEVATED RAILWAY IN BANGKOK CLEARING THE TRAFFIC CLOGGED CAPITAL'S TRANSIT AGENCY TO NEGOTIATE A CONSTRUCTION CONTRACT ABOUT FIFTEEN THOUSAND FARMERS STUDENTS AND DISSIDENTS DEMONSTRATED IN SEOUL DEMANDING SOUTH KOREA REVOKE OR HOLD A REFERENDUM ON ITS DECISION TO OPEN ITS RICE MARKET TO IMPORTS UNDER THE NEW WORLD TRADE PACT THE PROTEST TURNED VIOLENT AND ABOUT TWO HUNDRED PEOPLE WERE HURT SOME SERIOUSLY POLAROID CORPORATION BENEFITING FROM BRISK SALES OF A NEW CAMERA LINE POSTED A THIRTY TWO PERCENT JUMP IN FOURTH QUARTER NET INCOME TO THIRTY NINE POINT TWO MILLION DOLLARS OR EIGHTY THREE CENTS A SHARE COMPARED WITH TWENTY NINE POINT SIX MILLION DOLLARS OR SIXTY THREE CENTS A YEAR EARLIER FOURTH QUARTER SALES ROSE THREE POINT SIX PERCENT TO SIX HUNDRED SEVENTY TWO POINT SIX MILLION DOLLARS FROM SIX HUNDRED FORTY NINE POINT TWO MILLION DOLLARS BUT THE CAMBRIDGE MASSACHUSETTS INSTANT CAMERA AND FILM MAKER CAUTIONED ANALYSTS LATE YESTERDAY THAT A RAMP UP IN PRODUCTION FOR THE HELIOS MEDICAL AND COMMERCIAL IMAGING LINE AND THE EXPECTED FALLOFF OF SALES UNDER A MEXICAN VOTER REGISTRATION CONTRACT COULD HURT FIRST QUARTER PROFIT QUOTE THE FIRST QUARTER AND PROBABLY THE FIRST HALF OF THE YEAR COULD BE WEAK QUOTE SAID B. ALEX HENDERSON AN ANALYST AT PRUDENTIAL SECURITIES POLAROID STOCK ROSE ONE POINT THREE SEVEN FIVE DOLLARS OR FOUR POINT ONE PERCENT TO CLOSE AT THIRTY FIVE DOLLARS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY NIKE INCORPORATED SAID IT WILL PUT UP TWENTY FIVE THOUSAND DOLLARS TO HELP TONYA HARDING DEFEND HERSELF IF THERE IS AN EFFORT TO BOUNCE THE FIGURE SKATER FROM THE U. S. OLYMPIC TEAM NIKE OFFICIALS SAID THE OFFER ISN'T CONTINGENT ON WHETHER MS. HARDING IS GUILTY OR INNOCENT OF ALLEGATIONS BY HER EX HUSBAND THAT SHE APPROVED AN ASSAULT ON HER FIGURE SKATING RIVAL NANCY KERRIGAN LAST MONTH IN DETROIT THE EX HUSBAND JEFF GILLOOLY MADE THE ALLEGATION IN A NEGOTIATED GUILTY PLEA YESTERDAY MS. HARDING HASN'T BEEN CHARGED WITH ANY WRONGDOING AND NO FORMAL MOVE HAS BEEN MADE SO FAR TO BAR HER FROM OLYMPIC COMPETITION A NIKE SPOKESMAN YESTERDAY SAID THE COMPANY WAS CONCERNED WITH QUOTE THE ISSUE OF ATHLETE'S RIGHTS QUOTE IN THE HARDING CASE THE TWENTY FIVE THOUSAND DOLLARS WOULD BE EARMARKED ONLY TO DEFEND THE FIGURE SKATER AGAINST ANY EFFORTS BY OLYMPIC COMMITTEE OFFICIALS TO KEEP HER FROM COMPETING IN THE GAMES LATER THIS MONTH HE SAID OLYMPIC COMMITTEE OFFICIALS HAVE DECLINED TO COMMENT ON MS. HARDING'S SITUATION THE COMMITTEE HAS SAID IT WILL DECIDE BEFORE FEBRUARY TENTH WHETHER TO STRIP THE SKATER OF HER U. S. FIGURE SKATING ASSOCIATION MEMBERSHIP A MOVE THAT WOULD KEEP HER OUT OF THE OLYMPICS IT WASN'T QUITE THE GREAT DAY FOR THE IRISH THAT MANY HAD HOPED FOR GERRY ADAMS LEADER OF THE SINN FEIN POLITICAL PARTY USED HIS FORTY EIGHT HOUR VISA TO THE U. S. TO DELIVER A DENSE HISTORY LESSON BUT FAILED TO PACK A CLEARLY IDENTIFIABLE OLIVE BRANCH IN HIS OVERNIGHT BAG SPEAKING AT THE WALDORF ASTORIA TO A MOSTLY IRISH AMERICAN AUDIENCE INCLUDING LAWYERS ACADEMICS AND POLTICIANS ASSEMBLED BY THE NATIONAL COMMITTE ON AMERICAN FOREIGN POLICY MR. ADAMS REPEATED HIS CALL FOR THE BRITISH GOVERNMENT TO CLARIFY ITS JOINT DECLARATION OF LAST DECEMBER WITH THE IRISH GOVERNMENT TO ACCEPT THE PRINCIPLE OF NATIONAL SELF DETERMINATION AND TO SET OUT A TIME FRAME FOR ITS REALIZATION THIS FORMULATION IN ESSENCE REPEATED THE CALL FOR A UNITED IRELAND A POSITION THAT THE PROTESTANT MAJORITY OF NORTHERN IRELAND AND THE BRITISH GOVERNMENT OPPOSE ALTHOUGH GRANTED A VISA BY PRESIDENT CLINTON ON THE GROUNDS THAT HIS VIEWS ON VIOLENCE AND A POLITICAL SETTLEMENT OF THE CONFLICT IN NORTHERN IRELAND HAD CHANGED MARKEDLY IN A MEETING LAST WEEK WITH AMERICAN DIPLOMATS MR. ADAMS REFUSED TO CALL SPECIFICALLY ON THE IRISH REPUBLICAN ARMY TO LAY DOWN ITS ARMS HE ASKED INSTEAD FOR AN END QUOTE TO ALL ARMED ACTIONS AND A TOTAL DEMILITARIZATION QUOTE INCLUDING THE WITHDRAWAL OF BRITISH TROOPS THERE ARE TWENTY THOUSAND BRITISH TROOPS AND TWELVE THOUSAND ARMED POLICE IN NORTHERN IRELAND SINN FEIN WE OURSELVES IS A POLITICAL PARTY CLOSELY LINKED WITH THE I. R. A. AND SUPPORTED BY ABOUT FORTY PERCENT OF NORTHERN IRELAND'S CATHOLIC MINORITY ALTHOUGH MR. ADAMS FORTY FOUR YEARS OLD SAYS HE HASN'T ANY ROLE IN THE I. R. A. THE BRITISH GOVERNMENT DESCRIBES HIM AS A TERRORIST UNTIL NOW HE HAD BEEN EXCLUDED FROM THE U. S. ON THOSE GROUNDS BUT MANY IRISH AND IRISH AMERICANS HAIL THE FORMER BARTENDER AND PROLIFIC SHORT STORY WRITER AS A TIRELESS FIGHTER FOR A JUST PEACE FOR NORTHERN IRELAND'S CATHOLICS MR. ADAMS WHOSE FATHER WAS AN I. R. A. FIGHTER SHOT BY PROTESTANTS AND WHO HAS HIMSELF BEEN SHOT HELD WITHOUT CHARGE IN BRITISH JAILS AND BEATEN IN POLICE CELLS SAID HE'S PREPARED TO NEGOTIATE WITH ANYONE EVEN THE MAN WHO PULLED THE TRIGGER ON ME TO BRING PEACE HE ATTENDED THE CONFERENCE IN NEW YORK WITH REPRESENTATIVES FROM TWO OTHER NORTHERN IRELAND POLITICAL PARTIES DOCTOR JOHN ALDERDICE THE PROTESTANT LEADER OF THE ALLIANCE PARTY A MODERATE FORCE IN THE POLITICAL SPECTRUM AND JOHN HUME OF THE SOCIAL DEMOCRATIC AND LABOR PARTY WHICH REPRESENTS SIXTY PERCENT OF NORTHERN IRELAND'S CATHOLIC VOTERS AND DISASSOCIATES ITSELF FROM VIOLENCE LEADERS OF TWO MORE EXTREME PROTESTANT PARTIES DECLINED INVITATIONS ONE THE REVEREND IAN PAISLEY OF THE DEMOCRATIC UNIONIST PARTY TOLD THE CONFERENCE ORGANIZERS THAT THE MERE FACT OF MR. ADAMS'S INVITATION PRECLUDED HIS TAKING PART IT'S IMPORTANT TO REALIZE THAT THE PEOPLE WHO REPRESENT MORE THAN FIFTY PERCENT OF OPINION IN NORTHERN IRELAND AREN'T HERE TODAY SAID DOCTOR ALDERDICE A THIRTY EIGHT YEAR OLD PSYCHOTHERAPIST HE SAID MR. ADAMS'S REMARKS FAR FROM FURTHERING THE DIALOGUE ACTUALLY TOOK IT BACK A STEP TO STATEMENTS HE WAS MAKING BEFORE THE JOINT DECLARATION OLIVETTI REPORTED A CONSOLIDATED LOSS OF SIX HUNDRED FIFTY MILLION LIRE THREE HUNDRED EIGHTY FOUR THOUSAND EIGHT HUNDRED SIXTY FIVE DOLLARS IN NINETEEN NINETY TWO MR. DE BENEDETTI SPEAKING TO REPORTERS AT THE WORLD ECONOMIC FORUM IN DAVOS SWITZERLAND WOULDN'T COMMENT ON FULL YEAR NINETEEN NINETY THREE PROFIT BUT SAID THAT NINETEEN NINETY THREE WAS A QUOTE TURNING POINT QUOTE SINCE IT WAS THE FIRST TIME IN THREE YEARS THAT SALES INCREASED OLIVETTI RECENTLY REPORTED THAT NINETEEN NINETY THREE SALES WERE UP SEVEN POINT THREE PERCENT TO EIGHT POINT SIX TRILLION LIRE FIVE POINT OH NINE BILLION DOLLARS THAT SHOWED HE SAID THAT THE COMPANY HAS COMPLETED THE MOST IMPORTANT PART OF ITS RESTRUCTURING OLIVETTI SAW ITS WORK FORCE REDUCED TO THIRTY FIVE THOUSAND IN NINETEEN NINETY THREE FROM FIFTY EIGHT THOUSAND THREE YEARS AGO MR. DE BENEDETTI SAID HE COULDN'T RULE OUT THE POSSIBILITY OF A CAPITAL INCREASE BUT ADDED THAT OLIVETTI DOESN'T REALLY NEED THE MONEY RIGHT NOW THE BOARD RECENTLY AGREED TO ASK SHAREHOLDERS FOR A CAPITAL INCREASE OF ONE TRILLION LIRE IN CASH AND A SIMILAR AMOUNT IN BONDS IN A FIVE YEAR PERIOD IN ONE OR MORE OPERATIONS STATE AND LOCAL GOVERNMENT FINANCE OFFICERS URGED THE SECURITIES AND EXCHANGE COMMISSION TO SHELVE A CONTROVERSIAL PROPOSAL INTENDED TO END THE USE OF POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS TO WIN BOND BUSINESS THE GOVERNMENT FINANCE OFFICERS ASSOCIATION ASSAILED THE PROPOSAL SAYING IT WOULD BE A DISADVANTAGE TO STATE AND LOCAL OFFICIALS RUNNING FOR FEDERAL OFFICE AS WELL AS TO SMALL REGIONAL AND OTHER SECURITIES FIRMS IT SAID THE PROPOSAL RESTS ON THE ERRONEOUS ASSUMPTION THAT ANY LINK BETWEEN POLITICAL GIFTS AND THE SELECTION OF BOND UNDERWRITERS IS AN INVESTOR PROTECTION ISSUE THE ASSOCIATION'S ACTION CAME AS A SURPRISE TO REGULATORS A PROFESSIONAL ASSOCIATION OF STATE AND LOCAL FINANCE OFFICERS LONG INFLUENTIAL IN MUNICIPAL BOND REGULATORY ISSUES THE GFOA HAS WORKED CLOSELY WITH THE S. E. C. ON OTHER MUNICIPAL BOND MATTERS AND UNTIL NOW HAD TAKEN A LOW PROFILE ON THE PROPOSAL THE PROPOSED RULE WAS DRAFTED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD A SELF REGULATORY BODY SUBJECT TO S. E. C. OVERSIGHT IT WOULD BAR A DEALER FROM DOING BUSINESS WITH A BOND ISSUER WITHIN TWO YEARS OF THE DEALER ITS POLITICAL ACTION COMMITTEE OR ITS MUNICIPAL PROFESSIONALS MAKING POLITICAL GIFTS TO AN OFFICIAL OF THE ISSUER INDIVIDUALS ARE SHOVELING BILLIONS OF DOLLARS INTO VARIABLE ANNUITIES THE TAX SHELTERED COUSINS OF MUTUAL FUNDS BUT SOME EXPERTS QUESTION WHETHER THOSE INVESTMENTS ARE SUCH A GOOD DEAL THE REASON IS THAT FEW VARIABLE ANNUITIES INCLUDE THE KINDS OF INVESTMENTS THAT EXPERTS RATE MOST HIGHLY TOP PERFORMING STOCK FUNDS WITH PROVEN TRACK RECORDS ABOUT ONE IN FIVE FUNDS AVAILABLE IN THE FIFTEEN LEADING VARIABLE ANNUITIES MEETS THOSE QUALITY STANDARDS TODAY THE DEARTH OF GOOD CHOICES MEANS THAT MANY VARIABLE ANNUITY BUYERS MAY END UP WISHING THEY'D STUCK WITH PLAIN OLD MUTUAL FUNDS INSTEAD DESPITE SUCH SHORTCOMINGS IT'S EASY TO UNDERSTAND WHY VARIABLE ANNUITIES ARE SO POPULAR NOT ONLY DO THEY OFFER THE SAME TAX BENEFITS AS NON DEDUCTIBLE INDIVIDUAL RETIREMENT ACCOUNTS BUT THEY ALSO ALLOW UNLIMITED CONTRIBUTIONS LIKE I. R. A.S INVESTORS CAN SWITCH THEIR MONEY AMONG THE FUNDS WITHOUT TRIGGERING TAXES AND EARNINGS ARE TAX DEFERRED UNTIL THE MONEY IS WITHDRAWN AT WHICH POINT THE GAINS ARE TAXED AS ORDINARY INCOME BUT AS WITH I. R. A.S INVESTORS WHO WITHDRAW MONEY BEFORE THE AGE OF FIFTY NINE AND ONE HALF INCUR A TEN PERCENT PENALTY THE TAX PRIVILEGES APPLY TO ALL VARIABLE ANNUITIES BUT SINCE SOME OF THESE INVESTMENTS ARE MUCH BETTER BUYS THAN OTHERS IT PAYS TO BE DISCRIMINATING THE NUMBERS USUALLY SPEAK FOR THEMSELVES IF YOU KNOW WHAT TO LOOK FOR FOR INSTANCE WHEN COMPARISON SHOPPING AMONG DIFFERENT VARIABLE ANNUITIES INVESTORS SHOULD LOOK FOR A WIDE VARIETY OF INVESTMENT CHOICES PARTICULARLY A GOOD SELECTION OF STOCK FUNDS THOSE FUNDS SHOULD ALSO HAVE SUPERIOR TRACK RECORDS GOING BACK A MINIMUM OF THREE YEARS AND PREFERABLY LONGER THE EXPERTS SAY THE CHOICEST ANNUITIES OF ALL ARE THOSE THAT COMBINE TOP PERFORMING STOCK FUNDS WITH LOW ANNUAL FEES UNFORTUNATELY SUCH PEARLS AREN'T SO EASY TO FIND AMONG THE FIFTEEN HOTTEST SELLING VARIABLE ANNUITIES SOLD TO INDIVIDUALS INVESTORS MAY GET AS FEW AS FOUR OR AS MANY AS TWENTY TWO INVESTMENT SELECTIONS DEPENDING ON THE CONTRACT BUT FEWER THAN HALF THE TOTAL NUMBER OF FUNDS OR SEVENTY ONE OUT OF ONE HUNDRED FORTY FIVE INVEST IN STOCKS ONLY THIRTY TWO OF THOSE STOCK FUNDS ARE ABOVE AVERAGE PERFORMERS WITH PROVEN TRACK RECORDS ACCORDING TO FIGURES SUPPLIED BY MORNINGSTAR INCORPORATED A CHICAGO FIRM THAT EVALUATES FUND PERFORMANCE IN VARIABLE ANNUITIES WHY ARE STOCK FUNDS SO IMPORTANT THEY TEND TO HAVE HIGHER RETURNS THAN OTHER INVESTMENTS WHICH HELPS OFFSET THE HIGH FEES THAT OTHERWISE EAT AWAY AT VARIABLE ANNUITIES INSURERS SKIM AN AVERAGE ONE AND ONE QUARTER PERCENT FROM THE FUNDS' TOTAL ASSETS EACH YEAR AND THAT'S NOT EVEN COUNTING THE FUNDS' MANAGEMENT EXPENSES ALTOGETHER FEES IN VARIABLE ANNUITIES COMMONLY TOP TWO PERCENT OF ASSETS A YEAR ROUGHLY TWICE AS MUCH AS THE ANNUAL COSTS FOR STOCK MUTUAL FUNDS ANOTHER REASON TO CHOOSE STOCK FUNDS IN ANNUITIES IS THAT THEY GIVE MORE LONG TERM BANG FOR THE BUCK INVESTORS CAN MOVE IN AND OUT OF THE FUNDS WITHOUT TRIGGERING TAXES AND THE TAX DEFERRED COMPOUNDING GOES A LOT FURTHER WHEN EARNINGS ARE HIGHER THESE POINTS APPARENTLY AREN'T BEING LOST ON INVESTORS IN NINETEEN NINETY THREE INDIVIDUALS POURED ABOUT TWENTY FIVE BILLION DOLLARS OR SIXTY TWO PERCENT OF ALL NEW PURCHASES OF VARIABLE ANNUITIES INTO STOCK FUNDS THAT'S UP FROM NINE BILLION DOLLARS OR ABOUT FORTY PERCENT OF NEW PURCHASES A YEAR EARLIER ACCORDING TO ELI NEUSNER A CONSULTANT FOR CERULLI ASSOCIATES A FINANCIAL CONSULTING FIRM IN BOSTON THE MOST POPULAR CHOICES WERE BALANCED FUNDS WHICH INCLUDE STOCKS AND BONDS FOLLOWED BY GROWTH FUNDS GROWTH AND INCOME FUNDS WHICH INCLUDE STOCKS THAT PAY HIGH DIVIDENDS SMALL COMPANY STOCK FUNDS AND INTERNATIONAL STOCK FUNDS MR. NEUSNER SAYS SOME OF THE BIGGEST VARIABLE ANNUITIES DO OFFER STOCK FUNDS WITH GOOD LONG TERM PERFORMANCE AND A FULLY DIVERSIFIED SET OF INVESTMENT OBJECTIVES INCLUDING FRANKLIN VALUMARK THE SECOND BEST OF AMERICAN THE FOURTH SLASH NATIONWIDE AND PRUDENTIAL DISCOVERY PLUS ON THE OTHER END OF THE SPECTRUM LINCOLN NATIONAL MULTI FUND MASSACHUSETTS MUTUAL FLEX V. AND VALIC SEPARATE ACCOUNT A HAVE NO STOCK FUNDS OLDER THAN THREE YEARS WITH ABOVE AVERAGE PERFORMANCE SIZE ISN'T NECESSARILY AN ADVANTAGE AS SOME OF THE BEST BUYS ARE TO BE FOUND AMONG SMALLER VARIABLE ANNUITIES ONE WORTH CONSIDERING IS SCUDDER HORIZON PLAN FROM SCUDDER STEVENS AND CLARK OF BOSTON THE THREE YEAR TRACK RECORDS OF ITS GROWTH BALANCED AND INTERNATIONAL FUNDS ALL RANK IN THE TOP THIRD OF THEIR INVESTMENT CATEGORIES AT THE SAME TIME THE FUNDS' EXPENSES ARE BELOW AVERAGE THEIR ANNUAL INSURANCE CHARGES TOTAL ONLY ZERO POINT SEVEN ZERO PERCENT COMPARED WITH AN INDUSTRY AVERAGE OF ONE POINT TWO FIVE PERCENT AND THEY DON'T HAVE SURRENDER PENALTIES MOST ANNUITIES HAVE SURRENDER PENALTIES THAT AMOUNT TO ABOUT SEVEN PERCENT IN THE FIRST YEAR AND LAST SEVEN YEARS OR LONGER ANOTHER SMALLER VARIABLE ANNUITY THAT MIGHT BE WORTH A LOOK IS THE COMMONWEALTH PLAN FROM LIFE OF VIRGINIA A RICHMOND VIRGINIA INSURER IT HAS SIX STOCK FUNDS WHOSE THREE YEAR RETURNS RANK IN THE TOP THIRD OF THEIR INVESTMENT CATEGORIES IN ADDITION ITS TWO HIGH YIELD FUNDS ITS GOVERNMENT BOND FUND AND ITS CORPORATE BOND FUND WERE ALSO GOOD PERFORMERS LIKE MANY ANNUITIES LIFE OF VIRGINIA INCLUDES BOTH FUNDS MANAGED BY OUTSIDE MUTUAL FUND COMPANIES AND FUNDS RUN INTERNALLY BY THE INSURERS' OWN INVESTMENT MANAGERS THREE OF THE COMPANY'S TOP PERFORMING STOCK FUNDS ARE MANAGED BY FIDELITY INVESTMENTS OF BOSTON TWO BY LIFE OF VIRGINIA AND ONE BY OPPENHEIMER MANAGEMENT CORPORATION A NEW YORK UNIT OF MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY HOWEVER LIFE OF VIRGINIA'S ANNUAL INSURANCE CHARGES ARE SLIGHTLY ABOVE AVERAGE AT ONE POINT THREE OH PERCENT A YEAR THE INVESTMENT MANAGEMENT EXPENSES ON ITS FUNDS RANGE FROM BELOW AVERAGE FOR FUNDS MANAGED BY OUTSIDE MUTUAL FUND COMPANIES TO ABOVE AVERAGE FOR INTERNALLY MANAGED FUNDS IF AN ANNUITY YOU OWN OR ARE THINKING OF BUYING DOESN'T HAVE A CLUSTER OF PROVEN STOCK FUNDS DON'T ASSUME THE CONTRACT IS A DOG SOME OF ITS STOCK FUNDS MAY BE CLOSE TO COMPLETING GOOD THREE YEAR TRACK RECORDS OR THE VARIABLE ANNUITY ISSUER MAY BE PLANNING TO ADD OTHER TOP PERFORMING STOCK FUNDS THAT DO HAVE PROVEN TRACK RECORDS FOR EXAMPLE THE TOP PERFORMING FIDELITY FUNDS AVAILABLE IN LIFE OF VIRGINIA ARE ALSO INCLUDED IN A DOZEN OTHER VARIABLE ANNUITY CONTRACTS OFFERED BY OTHER INSURANCE COMPANIES SEVERAL OTHER ANNUITY ISSUERS ARE CURRENTLY NEGOTIATING TO ADD THESE AND OTHER TOP PERFORMING FUNDS BY OTHER MUTUAL FUND COMPANIES TO THEIR VARIABLE ANNUITIES UTAH MEDICAL PRODUCTS INCORPORATED SALT LAKE CITY SAID IT SUSPENDED ITS QUARTERLY DIVIDEND IN FAVOR OF REPURCHASING THREE MILLION DOLLARS OF THE COMPANY'S SHARES THE MAKER OF MEDICAL DEVICES SAID THE BUYBACK WOULD BE CONDUCTED OVER THE NEXT YEAR DURING THE PAST TWO YEARS THE COMPANY HAS REPURCHASED ABOUT ONE MILLION OF ITS SHARES CURRENTLY IT HAS ABOUT ELEVEN MILLION SHARES OUTSTANDING C. S. FIRST BOSTON IS EXPECTED TO ANNOUNCE AS EARLY AS TODAY THAT CHARLES G. WARD THE THIRD CO PRESIDENT OF ONETIME MERGER POWERHOUSE WASSERSTEIN PERELLA AND COMPANY IS REJOINING FIRST BOSTON AS WORLD WIDE HEAD OF INVESTMENT BANKING IT'S A CAREER U. TURN FOR MR. WARD WHO SERVED AS CO HEAD OF MERGERS AT FIRST BOSTON UNTIL HIS HIGHLY PUBLICIZED DEPARTURE ALONG WITH BRUCE WASSERSTEIN AND JOSEPH PERELLA IN NINETEEN EIGHTY EIGHT THEIR RIVAL BOUTIQUE WENT ON TO SUCCESS WITH THE HOSTILE TAKEOVERS THAT WERE THE TRADEMARK OF WALL STREET IN THE LATE NINETEEN EIGHTIES FIRST BOSTON OFFICIALS COULD NOT BE REACHED FOR COMMENT PEOPLE CLOSE TO MR. WARD SAY HE HAS BEEN TOLD THAT THE POSITION HE IS TAKING COULD LEAD TO HIGHER RESPONSIBILITIES AT C. S. FIRST BOSTON MR. WARD LEAVES WASSERSTEIN HARD ON THE HEELS OF MR. PERELLA WHO JOINED MORGAN STANLEY GROUP INCORPORATED IN NOVEMBER AS A MANAGING DIRECTOR IN INVESTMENT BANKING THIS SECOND HIGH PROFILE EXIT FROM WASSERSTEIN COMES AS THE MERGERS BOUTIQUE GRAPPLES WITH A STRATEGIC SHIFT ON WALL STREET WHEN THE FIRM WAS FOUNDED IN NINETEEN EIGHTY EIGHT THE MERGER BUSINESS WAS SIZZLING IN THE EARLY NINETEEN NINETIES MERGER ACTIVITY COOLED AND THE FIRM HAS TRIED TO BRANCH OUT WITH LIMITED SUCCESS INTO SECURITIES UNDERWRITING CURRENCY TRADING DERIVATIVES TRADING AND OTHER AREAS BUT NOW THE MERGERS BUSINESS IS HEATING UP AGAIN C. S. FIRST BOSTON FRESH FROM A CORPORATE REORGANIZATION THAT DEEMPHASIZED ITS GEOGRAPHICAL DIVISIONS AND SOUGHT TO INTEGRATE THE NEW YORK BROKERAGE FIRM MORE CLOSELY WITH ITS SWISS PARENT C. S. HOLDING A. G. IS APPARENTLY ATTEMPTING TO REGAIN ITS FORMER GLORY IN THE MERGERS FIELD THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR FELL TO ONE HUNDRED ELEVEN POINT TWO TWO FROM A REVISED ONE HUNDRED ELEVEN POINT TWO NINE THE PRIOR WEEK BUT THE ANNUAL CHANGE IN THE INDEX ROSE TO TWO POINT EIGHT FOUR PERCENT FROM TWO POINT SEVEN PERCENT SUGGESTING A MILD UPTURN IN THE STATE'S ECONOMIC GROWTH RATE CONTRIBUTING TO THE YEAR OVER YEAR INCREASE THE HELP WANTED INDEX ROSE IN EARLY JANUARY INITIAL UNEMPLOYMENT CLAIMS FELL AND CONSUMER CONFIDENCE JUMPED TOTES INCORPORATED A MAKER OF UMBRELLAS AND OTHER PRODUCTS SAID IT HIRED THE INVESTMENT BANKING FIRM OF WASSERSTEIN PERELLA AND COMPANY TO EVALUATE THE POSSIBILITY OF OUTSIDE INVESTORS ACQUIRING A STAKE IN THE COMPANY THE CLOSELY HELD COMPANY DIDN'T SAY WHICH COMPANIES OR INDIVIDUALS MIGHT HAVE MADE AN OFFER TOWARD ACQUIRING A STAKE IN TOTES WHICH IS BASED IN LOVELAND OHIO BUT IT STRESSED THAT IT DIDN'T WANT TO MAKE QUOTE SIGNIFICANT CHANGES IN STRATEGIC DIRECTION OR MANAGEMENT CONTROL QUOTE IN ANY SUCH TRANSACTION R. J. R. NABISCO HOLDINGS INCORPORATED POSTED A FOURTH QUARTER LOSS OF FOUR HUNDRED SIXTY ONE MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE LARGELY REFLECTING A PREVIOUSLY ANNOUNCED CHARGE RELATED TO WORK FORCE CUTS BUT THE NEW YORK COMPANY SAID THAT THE JOB CUTS WILL POSITION THE COMPANY TO EMBARK ON AN QUOTE AGGRESSIVE EARNINGS GROWTH TRACK QUOTE STARTING IN NINETEEN NINETY FOUR R. J. R.'S LARGE FOURTH QUARTER LOSS COMPARES WITH A PROFIT OF FORTY FIVE MILLION DOLLARS OR FOUR CENTS A SHARE FOR THE YEAR EARLIER QUARTER SALES FELL SLIGHTLY TO FOUR POINT OH FIVE BILLION DOLLARS FROM FOUR POINT OH NINE BILLION DOLLARS THE FOURTH QUARTER LOSS ALSO INCLUDED A THIRTY TWO MILLION DOLLAR CHARGE TO PAY FOR THE EARLY RETIREMENT OF DEBT AND CHARLES M. HARPER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY PLANNED TO RETIRE ADDITIONAL DEBT THIS YEAR IN A PREPARED STATEMENT MR. HARPER SAID WE ARE CAUTIOUSLY OPTIMISTIC ABOUT DOMESTIC TOBACCO AND BELIEVE A RETURN TO SOLID EARNINGS GROWTH IN NINETEEN NINETY FOUR IS ACHIEVABLE IN THAT SECTOR ANALYSTS SAID THAT WAS MR. HARPER'S MOST POSITIVE COMMENT YET ON THE U. S. TOBACCO BUSINESS WHICH HAS BEEN BATTERED BY A PRICE WAR HE IS GETTING A BIT MORE BULLISH ON DOMESTIC TOBACCO SAID RONALD MORROW A TOBACCO ANALYST WITH SMITH BARNEY AND UPHAM INCORPORATED IN INTERVIEWS LAST YEAR MR. HARPER SAID HE DIDN'T SEE U. S. TOBACCO AS A LONG TERM GROWTH BUSINESS RECENTLY CIGARETTE COMPANIES HAVE RAISED PRICES MODERATELY AND ADDITIONAL SUCH INCREASES ARE EXPECTED FOR THE FOURTH QUARTER R. J. R. SAID ITS NABISCO FOOD BUSINESS'S OPERATING PROFIT INCREASED SIXTEEN PERCENT R. J. R.'S STOCK CLOSED YESTERDAY AT SEVEN POINT THREE SEVEN FIVE DOLLARS A SHARE DOWN TWELVE POINT FIVE CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TWO OUTSIDE DIRECTORS OF CONTINENTAL BANK CORPORATION BOUGHT SHARES IN THE COMPANY DURING TALKS THAT LED TO LAST WEEK'S PROPOSED ONE POINT NINE BILLION DOLLAR ACQUISITION OF THE CHICAGO BASED BANK BY BANKAMERICA CORPORATION NEWS OF THE FRIENDLY BID FRIDAY SENT CONTINENTAL UP TWENTY TWO PERCENT TO THIRTY FOUR DOLLARS A SHARE FROM TWENTY SEVEN POINT EIGHT SEVEN FIVE DOLLARS THAT DAY YESTERDAY THE STOCK CLOSED AT THIRTY FOUR DOLLARS AND SEVENTY FIVE CENTS DOWN THIRTY SEVEN POINT FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DIRECTOR BERT GETZ PURCHASED TEN THOUSAND SHARES AT TWENTY FOUR DOLLARS APIECE NOVEMBER NINETEENTH AND DIRECTOR GORDON SEGAL BOUGHT ONE THOUSAND SHARES OCTOBER TWENTY NINTH AT TWENTY SIX DOLLARS AND THIRTY EIGHT CENTS EACH SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW MR. SEGAL IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CRATE AND BARREL A CHICAGOBASED HOUSEWEAR RETAILER AND MR. GETZ IS CHAIRMAN AND PRESIDENT OF GLOBE CORPORATION A CLOSELY HELD INVESTMENT COMPANY MR. GETZ'S PURCHASE WAS HIS FIRST OPENMARKET ACQUISITION OF CONTINENTAL SHARES SINCE REGISTERING AS AN INSIDER IN OCTOBER NINETEEN NINETY TWO AND MR. SEGAL'S PURCHASE WAS HIS FIRST OPEN MARKET PURCHASE SINCE HE REGISTERED IN APRIL NINETEEN NINETY ONE S. E. C. DATA INDICATE THE CHAIRMEN OF THE TWO COMPANIES BEGAN DISCUSSIONS IN AUGUST AND THOSE TALKS INTENSIFIED DURING THE PAST THREE MONTHS CULMINATING IN FRIDAY'S ANNOUNCEMENT ON FRIDAY A CONTINENTAL BANK SPOKESMAN SAID THE PURCHASES BY THE TWO DIRECTORS WERE MADE BASED ON PERSONAL INVESTMENT DECISIONS HE SAID THE TWO DIRECTORS RECEIVED ADVICE OF THE BANK'S GENERAL COUNSEL AND WERE ASSURED THAT QUOTE NOTHING WAS IN THE WORKS AT THAT STAGE TO PRECLUDE DOING THAT QUOTE YESTERDAY LISA HEWITT A SPOKESWOMAN FOR THE BANK SAID THERE WERE DISCUSSIONS BUT NO DEAL WHEN THE PURCHASES WERE MADE THE BOARD HADN'T BEEN PRESENTED A DEAL SHE SAID MR. SEGAL SAID HE BOUGHT SHARES IN THE OPEN MARKET BECAUSE I WANTED A BIGGER PERCENTAGE OF MY BANK DIRECTOR'S INCOME TO BE IN SHARES INSTEAD OF CASH HE ADDED THAT THERE HAD BEEN NO DISCUSSION OF BANKAMERICA AT THE TIME A SPOKESMAN FOR MR. GETZ SAID HE BUYS STOCK IN COMPANIES ON WHOSE BOARD HE SITS TYPICALLY WITH DIRECTOR'S FEES THE SPOKESMAN SAID MR. GETZ BELIEVES DIRECTORS OF COMPANIES SHOULD BE OWNERS AS WELL CONTINENTAL AND ITS CHAIRMAN THOMAS THEOBALD HAVE BEEN IN THE FOREFRONT AMONG COMPANIES REQUIRING EMPLOYEES TO PURCHASE STOCK TYING AT LEAST TO SOME EXTENT THEIR PERSONAL FORTUNES TO THEIR COMPANY'S PERFORMANCE CONTINENTAL DIRECTORS ARE ENCOURAGED TO PURCHASE STOCK MS. HEWITT SAID BUT NOT REQUIRED S. E. C. GUIDELINES REQUIRE THAT CORPORATE EXECUTIVES AND DIRECTORS AS WELL AS OTHER INSIDERS ABSTAIN FROM BUYING OR SELLING COMPANY STOCK WHEN IN POSSESSION OF NONPUBLIC MATERIAL INFORMATION OR THAT THEY DISCLOSE THAT INFORMATION BEFORE UNDERTAKING ANY SUCH ACTIVITY PRECISELY WHAT INSIDERS MAY OR MAY NOT HAVE KNOWN AND WHEN THEY MAY HAVE KNOWN IT ARE CRITICAL FACTORS IN DETERMINING WHETHER INSIDER ACTIVITY BUMPS UP AGAINST S. E. C. REGULATIONS SECURITIES LAWYERS SAID S. E. C. OFFICIALS WOULDN'T COMMENT ON WHETHER THEY WERE LOOKING INTO THE MATTER I COULD UNDERSTAND WHY GIVEN THE PROXIMITY OF THE PURCHASES TO THE ANNOUNCEMENT OF THE BID THAT A PERSON MIGHT WANT TO CONSIDER THE POSSIBILITY OF A VIOLATION SAID PETER ROMEO A FORMER S. E. C. ATTORNEY AND NOW A PARTNER WITH HOGAN AND HARTSON A WASHINGTON LAW FIRM MR. ROMEO SAID THE ISSUE WOULD BE WHETHER THE INFORMATION ABOUT THE PROPOSED SALE OF THE COMPANY WAS MATERIAL AT THE TIME THE INSIDERS BOUGHT STOCK BROADLY INFORMATION IS REGARDED AS QUOTE MATERIAL QUOTE IF IS IMPORTANT TO INVESTORS IN MAKING AN INVESTMENT DECISION HE SAID THE SUPREME COURT HAS SAID THAT INFORMATION ABOUT A SPECULATIVE EVENT IS MATERIAL IF ITS MAGNITUDE TO THE COMPANY AND THE PROBABILITY THAT IT WILL OCCUR ARE SIGNIFICANTLY GREAT WHEN BALANCED WITH EACH OTHER AND SUCH THAT INVESTORS WOULD CONSIDER IT IMPORTANT AROUND THE TIME THAT MESSRS GETZ AND SEGAL WERE ACQUIRING SHARES IN THE OPEN MARKET RICHARD HUBER VICE CHAIRMAN EXERCISED OPTIONS TO ACQUIRE FORTY FOUR THOUSAND SHARES AT AN EXERCISE PRICE OF FOURTEEN DOLLARS AND SIX CENTS EACH HE STILL HOLDS THOSE SHARES MR. HUBER WHO CURRENTLY HOLDS ONE HUNDRED THIRTY FOUR THOUSAND ONE HUNDRED FIFTY SIX SHARES HAS BEEN A REGULAR ACCUMULATOR OF COMPANY STOCK AND SAYS HE TYPICALLY EXERCISES STOCK OPTIONS AT THE END OF EACH YEAR FOR TAX PURPOSES INDEED S. E. C. DATA SHOW HE EXERCISED OPTIONS TO ACQUIRE FORTY FOUR THOUSAND SHARES AT FOURTEEN DOLLARS AND SIX CENTS EACH IN DECEMBER NINETEEN NINETY TWO AND CONTINUES TO HOLD THOSE SHARES THE BANK'S VICE CHAIRMAN SAID THAT IN NOVEMBER THERE WERE DISCUSSIONS WITH BANKAMERICA UNDER WAY BUT THAT NOTHING WAS CERTAIN HE SAID HOWEVER THAT HE WOULD HAVE BEEN RELUCTANT TO BUY STOCK IN THE OPEN MARKET AT THE TIME BUT THERE WAS NOTHING WRONG WITH EXERCISING OPTIONS HE ALREADY OWNED MR. ROMEO THE FORMER S. E. C. ATTORNEY SAID THE EXERCISE OF OPTIONS DOES NOT PRESENT A POSSIBLE VIOLATION OF S. E. C. GUIDELINES UNDER THE CIRCUMSTANCES THE OPTION EXERCISE IS NOT A PROBLEM BECAUSE THE COMPANY ITSELF IS THE OTHER PARTY TO THE OPTION EXERCISE TRANSACTION HE EXPLAINED THE S. E. C.'S REGULATIONS ARE TO DISCLOSE OR ABSTAIN BUT YOU DON'T HAVE TO DISCLOSE IF YOU KNOW THE OTHER PARTY HAS THE INFORMATION AND THE OTHER PARTY WOULD BE DEEMED TO HAVE THAT INFORMATION BECAUSE THEY'RE THE ONES DOING THE PROPOSED TAKEOVER DEAL SEPARATELY A GROUP OF CONTINENTAL SHAREHOLDERS FILED A SUIT IN DELAWARE CHANCERY COURT IN WILMINGTON THAT SEEKS TO PUT THE COMPANY UP FOR BID TERMING THE BANKAMERICA TAKEOVER PRICE OF ONE POINT NINE BILLION DOLLARS AS GROSSLY INADEQUATE THE SUIT SEEKS TO ENJOIN CONTINENTAL'S DIRECTORS FROM USING ANY LOCK UP OR POISON PILL TYPE MANUEVERS TO PREVENT BIDS FROM OTHER PARTIES THE SUIT SEEKS CLASS ACTION STATUS A SPOKESMAN FOR THE BANK SAID QUOTE WE BELIEVE THE SUIT HAS NO MERIT WHATSOEVER AND WE INTEND TO ACTIVELY DEFEND AGAINST IT QUOTE BLACK MANAGERS OFTEN SHRUG OFF NEGATIVE PERFORMANCE REVIEWS FROM WHITE SUPERVISORS A RECENT STUDY SHOWS BUT BY IGNORING SUCH FEEDBACK THEY MAY HELP FULFILL THEIR OWN EXPECTATIONS THAT THEY WILL BE TREATED BADLY BY WHITE MANAGERS SAYS HERDIE BAISDEN A PSYCHOLOGIST WHO CONDUCTED THE STUDY MR. BAISDEN A VICE PRESIDENT WITH PERSONNEL DECISIONS IN ARLINGTON VIRGINIA LOOKED AT HOW FIVE HUNDRED BLACK AND THREE THOUSAND SIX HUNDRED WHITE MANAGERS RATED THEMSELVES AND HOW THEY WERE RATED BY THEIR SUPERVISORS THE BLACK MANAGERS TENDED TO GET LOWER GRADES THAN THEIR WHITE COUNTERPARTS AND ALTHOUGH ALL THE MANAGERS THOUGHT THEY DID BETTER THAN THEIR SUPERVISORS THOUGHT THEY DID THE PERCEPTION GAP WAS SIGNIFICANTLY HIGHER FOR BLACK MANAGERS MR. BAISDEN WHO IS BLACK CONCLUDED THAT BLACK MANAGERS QUOTE DISCOUNT SOME OF THE FEEDBACK THEY GET AND SAY CONSIDER THE SOURCE QUOTE TO PROTECT THEMSELVES IN WORKPLACES THEY CONSIDER TO BE HOSTILE EVEN POSITIVE FEEDBACK IS DISCOUNTED WE END UP WITH A VIEW OF OURSELVES THAT CLEARLY IS NOT SHARED BY THE BOSS WHICH INCREASES THE LEVEL OF CONFLICT MR. BAISDEN SAYS WE STILL DON'T KNOW WHY THE WHITE MANAGERS ARE RATING THEM LOWER IN THE FIRST PLACE MR. BAISDEN SAYS BUT INSTEAD OF CLOSING DOWN TO FEEDBACK BLACK MANAGERS SHOULD TRY THEIR BOSS'S BOSS OR PEERS OR SUBORDINATES AND SEE HOW THEIR VIEWS LINE UP HE SAYS WHITE MANAGERS HE ADDS SHOULD BE FRANK CONSISTENT AND SPECIFIC IN THEIR EVALUATIONS OF BLACK SUBORDINATES TO OVERCOME INHERENT MISTRUST WHILE A DEBATE ON MULTICULTURALISM IS ROILING THE PUBLIC RELATIONS PROFESSION EVERYONE SEEMS TO AGREE ON ONE THING THE PUBLIC RELATIONS SOCIETY OF AMERICA HASN'T DONE ENOUGH TO BRING MINORITIES INTO THE FIELD BLACKS AND HISPANICS HOLD ABOUT SIX PERCENT AND TWO PERCENT OF PUBLIC RELATIONS JOBS RESPECTIVELY THAT HASN'T CHANGED SINCE NINETEEN EIGHTY FOUR ACCORDING TO FEDERAL STATISTICS TOTAL INDUSTRY EMPLOYMENT HAS BEEN FLAT FOR A DECADE YOU GET THIRTY MEMBERS OF P. R. S. A. IN A ROOM AND THEY AGREE ON THE NEED FOR DIVERSITY BUT WHEN IT COMES TO THEIR HIRING PRACTICES WE HIT A WALL SAYS CHERYL PROCTER A MEMBER OF P. R. S. A.'S MULTICULTURAL COMMITTEE AS A RESULT SEPARATE BLACK HISPANIC AND ASIAN PROFESSIONAL GROUPS HAVE SPRUNG UP IN RECENT YEARS BECAUSE OUR LEADERS FELT EXCLUDED SAYS OCTAVIO NUIRY PRESIDENT OF THE HISPANIC PUBLIC RELATIONS ASSOCIATION QUOTE IN AN IDEAL UNIVERSE I THINK WE SHOULD BE IN ONE GROUP BUT WE DON'T LIVE IN A PERFECT SOCIETY QUOTE SAYS MR. NUIRY SOME PUBLIC RELATIONS VETERANS THINK THE MULTICULTURALISM PUSH ISN'T DOING THE PROFESSION A LOT OF GOOD INFLUENTIAL TRADE NEWSLETTER PUBLISHER JACK O'DWYER SAYS THE AGENDA IS REALLY ABOUT SEPARATISM AND THAT ONLY MAKES THINGS HARDER WHEN THE GOAL SHOULD BE INTEGRATION RAY GAULKE P. R. S. A.'S NEW CHIEF EXECUTIVE SAYS MULTICULTURALISM HAS BEEN INEFFECTIVE SO FAR BECAUSE THE DEBATE FAILS TO ADDRESS THE BOTTOM LINE JOBS P. R. S. A. HASN'T SAID TO THE MEMBERSHIP THAT THIS IS ABOUT JOBS JOBS JOBS HE SAYS MR. GAULKE ADDS THAT P. R. S. A. IS COMMITTED TO NURTURING THE MINORITY ASSOCIATIONS AND PLANS TO BRING THEM UNDER THE P. R. S. A. UMBRELLA EVENTUALLY THE MULTICULTURAL PRIMARY CARE MEDICAL GROUP IS BRINGING A NEW MEANING TO THE TERM MANAGED CARE THE SAN DIEGO GROUP AIMS TO CAPITALIZE ON THE MANAGED CARE TREND TO BRING CULTURALLY APPROPRIATE CARE TO MEDICALLY UNDERSERVED ETHNIC COMMUNITIES DOCTOR RODNEY HOOD ORGANIZED MCPC A FEW YEARS AGO BECAUSE MINORITY DOCTORS WERE BEING FORCED TO CHOOSE BETWEEN JOINING MEDICAL GROUPS OUTSIDE THEIR COMMUNITIES OR STAYING BEHIND AND LOSING PATIENTS AS MORE ENROLLED IN HEALTH MAINTENANCE ORGANIZATIONS AND OTHER MANAGED CARE PLANS DOCTOR HOOD'S GOAL IS TO PROVIDE CARE THAT IS SENSITIVE TO MCPC'S MOSTLY HISPANIC BLACK AND ASIAN AMERICAN PATIENTS THE GROUP'S DOCTORS SPEAK THEIR PATIENTS' LANGUAGES AND KNOW THE SOCIAL AND SPIRITUAL PLACE CAREGIVERS OCCUPY AMONG SAN DIEGO'S EMERGING MAJORITY OF COLOR SOME OLDER BLACK PATIENTS FOR EXAMPLE ARE PUT OFF IF DOCTORS YOUNG ENOUGH TO BE THEIR CHILDREN CALL THEM BY THEIR FIRST NAME SAYS DOCTOR HOOD FOR REASONS ROOTED IN SLAVERY AND SEGREGATION MCPC RECENTLY AFFILIATED WITH THE UNIVERSITY OF CALIFORNIA SAN DIEGO HEALTHCARE NETWORK WHICH MANAGES HEALTH FACILITIES AND IS LOOKING TO BROADEN ITS MANAGED CARE OPTIONS MCPC WILL PROVIDE PRIMARY CARE AT TWENTY FOUR SITES UNDER CONTRACT WITH INSURERS WE'RE POSITIONING OURSELVES TO GET A LARGER PIECE OF THE MANAGEMENT FINANCES TO ALLOW US TO STAY WHERE WE ARE SAYS DOCTOR HOOD HISPANICS ASIANS AND AFRICAN AMERICANS WHO MAKE UP THIRTY FOUR PERCENT OF SAN DIEGO COUNTY ARE THE FASTEST GROWING SEGMENT OF THAT MANAGED CARE MARKET SAYS EDWARD MARTINEZ A CONSULTANT TO THE U. C. S. D. NETWORK MR. MARTINEZ SAYS THE AFFILIATION WITH MCPC QUOTE IS REALLY CRUCIAL TO THE UNIVERSITY'S GOAL OF SERVICING THE ENTIRE COMMUNITY AND BECOMING A MAJOR PLAYER IN MANAGED CARE QUOTE PRODUCER DIRECTOR OLIVER STONE CONTINUES TO MINE ASIAN AND HISPANIC CULTURES FOR FEATURE FILMS HIS RECENT FILMS CENTERED ON CHINESE AMERICAN AND VIETNAMESE STORIES NOW MR. STONE WILL DIRECT A FILM VERSION OF THE MUSICAL EVITA AFTER FINISHING THE STORY OF FORMER PANAMANIAN DICTATOR MANUEL NORIEGA THIS YEAR THAT FILM TENTATIVELY STARS AL PACINO WHO RECENTLY PORTRAYED A PUERTO RICAN GANGSTER AND ISN'T HISPANIC AFROLINK SOFTWARE LOS ANGELES A BLACK OWNED PRODUCER OF INTERACTIVE COMPUTER SOFTWARE ON AFRICAN AND AFRICAN AMERICAN HISTORY HAS ADDED AN ISLAMIC CULTURE PROGRAM THE PROGRAM MIXES SOUND ANIMATION AND TEXT AND INCLUDES A DIRECTORY OF ISLAMIC TERMS MERRY GO ROUND ENTERPRISES INCORPORATED SAID IT RECEIVED APPROVAL FROM U. S. BANKRUPTCY COURT IN BALTIMORE FOR ONE HUNDRED TWENTY FIVE MILLION DOLLARS IN DEBTOR IN POSSESSION FINANCING MERRY GO ROUND SAID THE REVOLVING LINE OF CREDIT WILL BE FINANCED BY C. I. T. GROUP NEW YORK THE JOPPA MARYLAND SPECIALTY RETAILER WHICH FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER ELEVEN OF THE BANKRUPTCY CODE IN EARLY JANUARY SAID IT HOPES TO FILE A REORGANIZATION PLAN WITHIN THE ONE HUNDRED TWENTY DAY EXCLUSIVITY PERIOD MERRY GO ROUND ALSO DENIED PUBLISHED REPORTS THAT IT WOULD CLOSE ONE HUNDRED TO TWO HUNDRED STORES IN THE NEXT YEAR QUOTE NO DETERMINATION HAS BEEN MADE BY MERRY GO ROUND ENTERPRISES TO CLOSE ANY STORES OTHER THAN THE APPROXIMATELY EIGHTY STORES INCLUDING APPROXIMATELY FIFTY CHESS KING STORES PREVIOUSLY ANNOUNCED QUOTE THE COMPANY SAID IN ADDITION THE COMPANY SAID IT WOULD RETREAT FROM THE HIP HOP URBAN FASHIONS THAT FAILED TO GARNER APPEAL IN THE PAST TWELVE MONTHS CONTRIBUTING TO THE COMPANY'S RECENT FINANCIAL PROBLEMS INSTEAD THE COMPANY PLANS TO STOCK ITS STORES WITH MORE CONSERVATIVE STYLES HUNCHED OVER AN ARRAY OF BRIGHTLY COLORED MAPS RICHARD MATZKE HEAD OF CHEVRON CORPORATION'S INTERNATIONAL EXPLORATION UNIT PLOTS POTENTIAL PIPELINE ROUTES THAT ONE DAY COULD TRANSFORM THE COMPANY'S TENGIZ OIL PROJECT IN KAZAKHSTAN INTO A SMALLER VERSION OF SAUDI ARABIA THE PIPELINE IN THE FORMER SOVIET REPUBLIC COULD ALSO COMPLETE CHEVRON'S STRATEGIC TRANSFORMATION FROM CAUTIOUS DOMESTIC PLODDER INTO SUCCESSFUL GLOBAL RISK TAKER BUT AS IN MOST CORPORATE MAKEOVERS AMERICA'S THIRD LARGEST OIL AND GAS COMPANY IS BECOMING AWARE OF A WIDE AND POSSIBLY PERILOUS GAP TWIXT PLAN AND REALITY TAKING THE PIPELINE IN ONE DIRECTION WOULD ROUTE IT THROUGH THE TURF OF THE REGION'S MOST TREACHEROUS UNDERWORLD BOSSES ANOTHER PATH WOULD TAKE IT THROUGH POCKETS OF FIERCE ETHNIC FIGHTING AND MAYBE EVEN THROUGH IRAQ OR IRAN THE OBVIOUS SOLUTION TO HOOK INTO NEIGHBORING RUSSIA'S EXISTING PIPELINE SYSTEM MAY COST A CZAR'S RANSOM OR BE POLITICALLY IMPOSSIBLE QUOTE SOMEWHERE THERE IS GOING TO BE A TOLL BOOTH QUOTE MR. MATZKE SAYS WITH A SIGH THERE IS ALWAYS A PRICE TO PAY SAN FRANCISCO BASED CHEVRON HAS DECIDED TO PAY THAT PRICE BUT MORE THAN OTHERS IN BIG OIL IT HAS HAD TO CHANGE ITS WAYS TO DO SO INTERNALLY THE ONCE COMPLACENT COMPANY IS MOVING TO INSTILL A MORE ENTREPRENEURIAL CULTURE WITH LESS CENTRAL CONTROL GLOBALLY IT IS DETERMINED TO GROW BY GAMBLING ON RISKY BUT POTENTIALLY HIGH RETURN MEGAPROJECTS FROM THE STEPPES OF CENTRAL ASIA TO WAR RAVAGED WESTERN AFRICA ITS GOALS TO MORE THAN DOUBLE ITS WORLD WIDE RESERVES AND TO GAIN WALL STREET'S RESPECT WATCHING BIG PLAYING FIELDS OPENING UP ALL AROUND THE WORLD FINALLY PERSUADED CHEVRON IT COULDN'T AFFORD TO RELY ON THE VERY RESTRICTIVE SET OF OPPORTUNITIES HERE IN THE U. S. SAYS DAVID O'REILLY VICE PRESIDENT OF STRATEGIC PLANNING THE TURNING POINT CAME THREE YEARS AGO WHEN TOP MANAGERS GASPED AT BUDGET REQUESTS LAID BEFORE THEM ANNUAL PROFIT WAS DIVING BELOW ONE BILLION DOLLARS WHILE DIVISIONAL EXECUTIVES BLITHELY CHURNED OUT WISH LISTS GEARED TO A COMPANY EARNING TWICE THAT MUCH EVER SINCE THEN CHEVRON HAS BEEN SHRINKING ITS DOMESTIC INVESTMENTS AND SLASHING OPERATING COSTS ESSENTIAL MOVES IN VIEW OF A GLOBAL OIL GLUT THAT HAS DEPRESSED PRICES TO A FIVE YEAR LOW IT HAS PUT MORE THAN FIVE BILLION DOLLARS OF ASSETS ON THE BLOCK IN THE PAST FEW YEARS CHOPPED ITS PAYROLL MORE THAN TWENTY PERCENT TO FORTY TWO THOUSAND AND ELIMINATED MOST COMPANY OWNED GASOLINE STATIONS IN THE EAST ALTHOUGH CHEVRON REMAINS THE NUMBER TWO NATURAL GAS PRODUCER AND LARGEST MARKETER OF PETROLEUM PRODUCTS IN THE U. S. ITS NEW STRATEGY HAS SET ITS TRADITIONAL SPENDING PATTERNS ON THEIR HEAD CHEVRON OPERATES FAR FEWER DOMESTIC OIL AND GAS PROPERTIES THAN IT HAD JUST FIVE YEARS AGO THREE OUT OF FOUR EXPLORATION DOLLARS ARE GOING OVERSEAS ALMOST DOUBLE THE PRE NINETEEN EIGHTY NINE PERCENTAGE EVEN CHEVRON'S HISTORIC DOWNTOWN SAN FRANCISCO OFFICE BUILDING IS ON THE MARKET WHILE ALL BIG OIL IS GOING THROUGH CHANGE CHEVRON HAS HAD TO GO FURTHER FASTER TO BECOME COMPETITIVE CONTENT IN THE NINETEEN EIGHTIES TO RELY ON FIELDS IN THE GULF OF MEXICO AND THE SOUTHWEST IT CONSISTENTLY HAD THE HIGHEST COST FOR PRODUCING A BARREL OF OIL IN THE U. S. THE INDUSTRY VIEWED CHEVRON AS SLOW AND STODGY AFTER BUYING GULF OIL COMPANY IN NINETEEN EIGHTY FOUR IT WAITED TOO LONG TO CUT OVERHEAD AND THEN WAS TOO TIMID IN ELIMINATING MARGINAL OPERATIONS AS THE ENERGY BUSINESS SANK UNTIL A FEW YEARS AGO TOP MANAGERS HAD TO APPROVE EVEN RELATIVELY PIDDLING ONE MILLION DOLLARS OUTLAYS NOW CHEVRON HAS REPORTED FIVE STRAIGHT QUARTERS OF OPERATING EARNINGS ABOVE FIVE HUNDRED MILLION DOLLARS IN EARLY JANUARY IT GAVE EMPLOYEES ONE HUNDRED FIFTEEN MILLION DOLLARS IN BONUSES AND TOOK OUT NEWSPAPER ADS TO TRUMPET ACHIEVING ITS GOAL OF PROVIDING THE GREATEST RETURN TO SHAREHOLDERS AMONG MAJOR U. S. OIL CONCERNS BASED ON TOTAL DIVIDENDS AND STOCK APPRECIATION OVER THE PAST FIVE YEARS DIVIDENDS HAVE INCREASED SIX TIMES IN SIX YEARS AND THE STOCK IS UP ABOUT TWENTY FIVE PERCENT FROM TWO YEARS AGO JUST DAYS AFTER THE BOARD PROPOSED A TWO FOR ONE STOCK SPLIT CHEVRON CLOSED YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT NINETY THREE DOLLARS AND TWENTY FIVE CENTS DOWN TWELVE POINT FIVE CENTS ON THE DAY CHAIRMAN KENNETH DERR SEES EVEN BRIGHTER DAYS AHEAD EXCEPT FOR THE U. S. HE SAYS EVERY COUNTRY IN THE WORLD IS DOING EVERYTHING POSSIBLE TO DEVELOP ITS OIL RESOURCES GROWTH OPPORTUNITIES FOR INTERNATIONAL OIL COMPANIES HAVE NEVER BEEN GREATER BUT CHEVRON FACES STIFF COMPETITION ABROAD EVERY MAJOR OIL COMPANY IS LOOKING THERE PACE SETTERS SUCH AS EXXON CORPORATION AND ROYAL DUTCH SLASH SHELL GROUP HAVE GREATER FINANCIAL RESOURCES AND MORE DIVERSIFIED WORLD WIDE INTERESTS CHEVRON'S STRATEGIC SHIFT REFLECTS GEOLOGICAL REALITY AND A THIRST FOR CRUDE OIL WHEN CRITICS DEMAND TO KNOW WHY THE COMPANY HAS TURNED ITS BACK ON DOMESTIC EXPLORATION FOR MUCH RISKIER VENUES THE USUALLY AMIABLE MR. DERR TURNS BITTER REELING OFF A LIST OF U. S. WILDLIFE REFUGEES AND OFFSHORE AREAS THAT CAN'T BE DEVELOPED BECAUSE OF ENVIRONMENTAL OBSTACLES DID YOU EVER TRY TO DO BUSINESS IN SANTA BARBARA COUNTY HE SNAPS QUOTE WE TOOK A BIGGER EXPLORATION AND PRODUCTION WRITE OFF THERE THAN WE TOOK ANYWHERE ELSE QUOTE HAVING INVESTED TWO POINT SIX BILLION DOLLARS TO DEVELOP THE POINT ARGUELLO FIELD OFF THE COAST OF SANTA BARBARA CHEVRON AND ITS PARTNERS HAVE BEEN FIGHTING OPPOSITION FROM LOCAL POLITICIANS AND ENVIRONMENTAL GROUPS SINCE NINETEEN EIGHTY IN MANY WAYS CHEVRON'S FOCUS TODAY HARKS BACK TO EARLIER GLORY WHEN LUCK AND PERSEVERANCE EARNED IT THE FIRST WESTERN FOOTHOLD IN SAUDI ARABIA IN THE NINETEEN THIRTIES FOR A PITTANCE ITS GEOLOGISTS NEGOTIATED A HUGE DRILLING CONCESSION SIX CONSECUTIVE WELLS WERE UNSUCCESSFUL BUT AFTER FIVE YEARS OF WORK THE SEVENTH HOLE WAS A GUSHER THAT CHANGED THE MIDEAST FOREVER AND CATAPULTED CHEVRON INTO THE MAJOR LEAGUES OF INTERNATIONAL OIL PRODUCTION IT STILL BUYS ABOUT THIRTEEN PERCENT OF ITS OIL FROM SAUDI FIELDS CHEVRON IS MAKING BOLD FORAYS TODAY EVEN THOUGH IT IS STILL HAUNTED BY A DISASTROUS NEARLY ONE BILLION DOLLAR INVESTMENT THAT IT HAD TO ABANDON IN SUDAN NEARLY A DECADE AGO AS THAT COUNTRY SLID INTO ANARCHY NEARLY NINE HUNDRED MILES OF PIPE AND THE EQUIPMENT TO LAY IT RUSTED AT STAGING AREAS WHILE GUERRILLAS KILLED SOME MEMBERS OF CHEVRON'S CONSTRUCTION CREW NOT A BARREL OF OIL WAS EVER PUMPED ONLY RECENTLY HAS THE COMPANY DELETED REFERENCES TO THE IGNOMINIOUS PROJECT FROM INTERNAL BRIEFING PAPERS WE AREN'T GOING TO HAVE ANY MORE SUDANS MR. MATZKE VOWS NOTING THAT NO COUNTRY ACCOUNTS FOR MORE THAN TWENTY FIVE PERCENT OF THE COMPANY'S ANNUAL OVERSEAS INVESTMENT YET WITH SO MUCH AT STAKE CHEVRON CAN'T ABANDON PROJECTS BECAUSE OF POLITICAL UNCERTAINTIES TO KEEP PRODUCTION GOING IN NIGERIA WHICH HAS HAD THREE GOVERNMENTS IN SEVEN MONTHS AND AN ELECTED PRESIDENT WHO HASN'T TAKEN OFFICE BECAUSE OF CIVIL STRIFE CHEVRON WILL HAVE TO SPEND A QUARTER OF A BILLION DOLLARS A YEAR AS FAR INTO THE FUTURE AS WE CAN SEE MR. MATZKE SAYS IN ANGOLA THREE MORTAR SHELLS EXPLODED INSIDE THE COMPANY'S NORTHERN COMPLEX A FEW WEEKS AGO INJURING A WORKER AND FORCING AN EVACUATION UNTIL GOVERNMENT PARATROOPERS CHASED AWAY THE ATTACKERS EARLIER THE COMPANY'S WORK FORCE FOR OFFSHORE WELLS IN ZAIRE HAD BEEN RELOCATED TO THE ANGOLA SITE AFTER A SHOOTING SPREE SO FAR PRODUCTION IN BOTH COUNTRIES IS ON SCHEDULE AND CHEVRON SAYS WORKING WITH VARIOUS FACTIONS SHOULD KEEP THE OIL FLOWING DESPITE UNREST IN AFRICA AND ELSEWHERE CHEVRON'S EXECUTIVES PREDICT A NEARLY THIRTY PERCENT JUMP IN ITS FOREIGN PRODUCTION FROM CURRENT LEVELS BY THE LATE NINETEEN NINETIES THE COMPANY IS GIVING ITS ON THE SCENE PEOPLE MORE AUTHORITY WHEN SECRETARY OF STATE WARREN CHRISTOPHER MADE A BRIEF STOP IN THE KAZAKH CAPITAL CHEVRON'S LOCAL MANAGER MORLEY DUPRE GAVE HIM A LONG BRIEFING URGING MORE U. S. DIPLOMATIC PRESSURE TO GAIN RUSSIAN COOPERATION MANAGING DIRECTORS IN EACH COUNTRY CULTIVATE U. S. DIPLOMATS AND LOCAL OFFICIALS CHEVRON EXECUTIVES ARE CRISSCROSSING THE GLOBE PEDDLING A WIDE RANGE OF TECHNOLOGY DRUMMING UP CONSULTING CONTRACTS AND TRYING TO LAUNCH SMALL SCALE VENTURES IN THE HOPE OF EVENTUALLY GETTING LARGER ONES IN ANGOLA THEY GIVE THE CASH STARVED GOVERNMENT ADVICE ON LINING UP INTERNATIONAL FINANCING IN RUSSIA THEY HELP REFINERIES TURN OUT HIGHER GRADE LUBRICANTS AND SUGGEST WAYS TO SET UP A NETWORK OF SERVICE STATIONS IF YOU DON'T START TALKING TO PEOPLE AND DO A LITTLE BIT OF BUSINESS MR. DERR SAYS YOU'RE PROBABLY NEVER GOING TO DO THE BIGGER BUSINESS SOMETIMES COMMON SENSE DICTATES A LOWER PROFILE WHEN CHINESE OFFICIALS COMPLAINED TO CHEVRON AND ITS PARTNERS THAT TOO MANY HIGHLY PAID WESTERN ENGINEERS WERE MANAGING AN OFFSHORE PROJECT ONLY MR. MATZKE'S CREW GOT THE MESSAGE THE OTHERS BALKED AT GIVING UP THE IMAGE THAT GOES WITH A PERMANENT PRESENCE CHEVRON DECIDING THAT EARNING CHINA'S GOODWILL WAS MORE IMPORTANT PULLED WESTERN EMPLOYEES OUT AND IT HAS GOTTEN A STEADY STREAM OF SMALL FAVORS AND PROMISES OF FUTURE ASSISTANCE FROM THE CHINESE BUT WELL THOUGHT OUT STRATEGIES SOMETIMES COME UP AGAINST THE HARSH REALITIES OF PRODUCING CRUDE ABROAD AT TENGIZ WHICH IS OPERATED AS A FIFTY TO FIFTY JOINT VENTURE BY CHEVRON AND THE KAZAKH GOVERNMENT TEMPERATURES CAN TOP ONE HUNDRED THIRTY DEGREES IN SUMMER AND PLUNGE TO THIRTY DEGREES BELOW IN THE WINTER THE MUD IS DEEP ENOUGH TO SUCK THE BOOTS OFF UNSUSPECTING VISITORS RAILROAD CARS JAMMED WITH GIANT ELECTRIC GENERATORS ARE THE ONLY DEPENDABLE SOURCE OF POWER EVEN IF EVERYTHING WORKS PERFECTLY IN SUCH A HOSTILE ENVIRONMENT IT CAN TAKE A DECADE TO START EARNING PROFITS MEANWHILE CONTRACTS AND CURRENCIES CAN CHANGE DAILY AT THE WHIM OF OFFICIALDOM THE GAP BETWEEN LAW AND REALITY IS HUGE SAYS GEORGE MISTULOFF A FORMER CONSULTANT FOR U. S. COMPANIES IN KAZAKHSTAN AND NEARBY AREAS YOUR GUARANTEES QUITE FRANKLY ARE ONLY AS GOOD AS YOUR PERSONAL RELATIONSHIP WITH THE PEOPLE WHO HAPPEN TO BE IN CHARGE AT THE MOMENT ALTHOUGH CHEVRON SAYS ITS SPENDING IN THE BARREN KAZAKH COUNTRYSIDE IS PROCEEDING SLOWLY IT HAS ALREADY LAID OUT THREE HUNDRED MILLION DOLLARS AND BEEN TIED UP FOR SEVEN YEARS IN NEGOTIATIONS TO GAIN ACCESS TO A PRIZE THAT DWARFS ALASKA'S RENOWNED PRUDHOE BAY THE COMPANY HAS AGREED TO FINANCE EVERYTHING FROM SCHOOLS AND CLINICS TO STATE OF THE ART PROCESSING PLANTS BUT THE FUNDING SPIGOT WON'T BE OPENED FURTHER WITHOUT REAL PROGRESS IN MARKETING OIL QUOTE WE REALLY CAN'T CONTROL MUCH ELSE IN THESE HIGH RISK DEALS QUOTE MR. MATZKE ACKNOWLEDGES SO IF WE LOSE TENGIZ WE DON'T GO INTO THE TANK IF WE SUCCEED WE'RE IN HEAVEN HEAVEN MUST WAIT NEARLY ALL THE EXISTING TENGIZ WELLS THAT CHEVRON INHERITED UNDER ITS CONTRACT HAD TO BE PLUGGED OR REWORKED TO MAKE SURE THEY WOULDN'T EXPLODE OUTPUT IS A MERE THIRTY THOUSAND BARRELS A DAY LESS THAN A QUARTER OF WHAT THE COMPANY EXPECTED TO SHIP BY MID NINETEEN NINETY FOUR RUSSIA WHICH CURRENTLY SWAPS TENGIZ OIL FOR CRUDE THAT CHEVRON CAN EXPORT FROM A BLACK SEA PORT REFUSES TO ACCEPT ADDITIONAL BARRELS FROM THE LANDLOCKED FIELD UNLESS CHEVRON SPENDS SUBSTANTIAL SUMS NOT SPECIFIED IN THE CONTRACT TO UPGRADE PUMPING STATIONS AND OTHER FACILITIES THE KAZAKHS THEMSELVES HAVE OCCASIONALLY HELD DOWN TENGIZ PRODUCTION FOR INTERNAL POLITICAL REASONS MR. DERR CONCEDES THAT CHEVRON IS GOING THROUGH HOLY HELL TO KEEP THE PROJECT ON TRACK BUT ALMOST IN THE SAME BREATH HE STRESSES THAT CHEVRON MUST FIND A WAY AROUND THE OBSTACLES IT'S JUST ABSOLUTELY FANTASTIC THAT WE ARE IN BUSINESS IN KAZAKHSTAN AHEAD OF COMPETITORS HE SAYS MARVELING THAT CHEVRON HAS COME THIS FAR WE'RE SELLING MORE OIL FROM THE FORMER SOVIET UNION THAN ANYBODY ELSE BY NAMING BOSTON LAWYER DEVAL PATRICK THE NATION'S TOP CIVIL RIGHTS LAW ENFORCEMENT OFFICIAL BILL CLINTON CONFIRMED A FEAR HARBORED BY MANY WHO HOPED HE WOULD LIVE UP TO HIS NEW DEMOCRAT BILLING THAT THE PRESIDENT HAS WEDDED HIMSELF TO A HARD LEFT CIVIL RIGHTS AGENDA THOUGH CHASTENED BY PUBLIC REPUDIATION OF THE RADICAL VIEWS ESPOUSED BY LANI GUINIER HIS FIRST NOMINEE FOR ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS MR. CLINTON HAS DIPPED INTO THE SAME PHILOSOPHICAL WELL FOR ALL HIS OTHER NOMINEES FOR KEY CIVIL RIGHTS POSITIONS HE NEARLY DIVERGED FROM THIS PATH BY CHOOSING JOHN PAYTON FOR THE TOP POST BUT RETREATED WHEN THE CONGRESSIONAL BLACK CAUCUS QUESTIONED MR. PAYTON'S IDEOLOGICAL BONA FIDES IN MR. PATRICK MR. CLINTON HAS SELECTED A STEALTH GUINIER A SIMILAR ACTIVIST PEDIGREE BUT WITHOUT DAMAGING LAW REVIEW ARTICLES DURING THE EARLY NINETEEN EIGHTIES BOTH MR. PATRICK AND MS. GUINIER LITIGATED WITH THE N. DOUBLE A. C. P. LEGAL DEFENSE AND EDUCATIONAL FUND LDF WHICH HAS RELENTLESSLY PRESSED FOR RACE QUOTAS BUSING AND MINORITY CONTRACT SET ASIDES MR. PATRICK NOW CHAIRS THE GROUP'S NEW ENGLAND STEERING COMMITTEE THOUGH MS. GUINIER FOCUSED ON VOTING RIGHTS CASES WHILE MR. PATRICK ATTACKED THE DEATH PENALTY AND REPRESENTED CRIMINAL DEFENDANTS A CONSISTENT THREAD RUNS THROUGH THEIR EFFORTS AND THE ENTIRE LDF PROGRAM THE BELIEF THAT UNCONSCIOUS RACISM PERMEATES AMERICAN SOCIETY AND CAN BE REMOVED ONLY THROUGH RACE CONSCIOUS SOCIAL ENGINEERING ONE PATRICK CASE IN PARTICULAR EXEMPLIFIES THIS IN MCCLESKY V. KEMP A NINETEEN EIGHTY SEVEN SUPREME COURT CASE MR. PATRICK REPRESENTED WARREN MCCLESKY A BLACK MAN ACCUSED OF MURDER FOR ALLEGEDLY SHOOTING A POLICEMAN IN THE FACE DURING THE ROBBERY OF A FURNITURE STORE IN FULTON COUNTY GEORGIA A MIXED RACE JURY SENTENCED MR. MCCLESKY TO DEATH THE MCCLESKY CASE WAS PART OF LDF'S EFFORT TO ELIMINATE CAPITAL PUNISHMENT A GOAL ITS NINETEEN EIGHTY SEVEN TO EIGHTY EIGHT ANNUAL REPORT DESCRIBED AS QUOTE FOR MORE THAN TWO DECADES LDF'S PRIORITY IN THE AREA OF CRIMINAL JUSTICE QUOTE BUT LDF PRESENTED NO EVIDENCE THAT DISCRIMINATION INFECTED MR. MCCLESKY'S TRIAL OR SENTENCE IN ANY WAY RATHER IT RELIED SOLELY ON STATISTICAL STUDIES SHOWING THAT MURDERERS OF WHITE VICTIMS WERE MORE LIKELY TO RECEIVE CAPITAL PUNISHMENT THAN MURDERERS WHOSE VICTIMS WERE BLACK THE STATISTICS ALSO SHOWED CURIOUSLY THAT A HIGHER PERCENTAGE OF WHITES THAN BLACKS WERE GIVEN CAPITAL PUNISHMENT WHEN THE VICTIMS WERE BLACK THIS STUDY WAS ENOUGH MR. PATRICK ASSERTED TO STRIKE DOWN THE DEATH SENTENCE AS A VIOLATION OF THE EIGHTH AMENDMENT'S BAN ON CRUEL AND UNUSUAL PUNISHMENT AND THE FOURTEENTH AMENDMENT'S EQUAL PROTECTION GUARANTEE MR. PATRICK'S ARGUMENT WOULD HAVE FORCED THE SUPREME COURT TO ABANDON ITS RULE THAT VIOLATIONS OF EQUAL PROTECTION REQUIRE PROOF OF DISCRIMINATORY INTENT NOT JUST UNEQUAL OUTCOMES THE COURT DECLINED GIVEN THE MYRIAD PROTECTIONS ATTENDING THE DEATH PENALTY AND ABSENT EVIDENCE THAT DISCRIMINATION AFFECTED A PARTICULAR SENTENCE THE COURT RULED THAT STATISTICS ALONE WERE NOT ENOUGH TO CONDEMN THE WHOLE SYSTEM AS DISCRIMINATORY REGARDLESS OF ONE'S OPINION ON CAPITAL PUNISHMENT GENERALLY MR. PATRICK'S ARGUMENT IS DISTURBING ON MULTIPLE LEVELS GRAFTING AN EQUALITY OF RESULTS STANDARD ONTO THE FOURTEENTH AMENDMENT WOULD RENDER UNCONSTITUTIONAL ANY GOVERNMENT POLICY THAT AFFECTS RACIAL GROUPS DIFFERENTLY LEADING INEVITABLY TO THE TYPE OF RACIAL GERRYMANDERING THAT CHARACTERIZES THE VOTING RIGHTS ACT WHICH USES A RESULTS STANDARD PRESIDENT CLINTON REJECTED THIS APPROACH DURING HIS CAMPAIGN WHEN HE ENDORSED EQUAL OPPORTUNITY RATHER THAN EQUALITY OF RESULTS AS HIS CIVIL RIGHTS TOUCHSTONE THE PATRICK NOMINATION ALSO REFLECTS A TROUBLING TENDENCY BY MR. CLINTON TO APPOINT JUDGES AND LAW ENFORCEMENT OFFICIALS WHO EXALT SOCIOLOGY AND PSYCHOLOGY OVER LAW LIKE MS. GUINIER'S CONTENTION THAT UNCONSCIOUS RACISM PRODUCES UNEQUAL ELECTORAL RESULTS MR. PATRICK'S ARGUMENT IN MCCLESKY RESTS ON THE PREMISE THAT FAIR PROCEDURES ARE RACIST IF THEY PRODUCE UNEQUAL OUTCOMES THIS PREMISE ANIMATED LDF'S LITIGATION AGENDA DURING MR. PATRICK'S TENURE IN WHICH IT SUCCESSFULLY SOUGHT MASSIVE JUDICIALLY IMPOSED TAX INCREASES TO FUND A GOLD PLATED DESEGREGATION PLAN IN KANSAS CITY MISSOURI ARGUED IN FAVOR OF RACIAL QUOTAS FOR PUBLIC EMPLOYEES IN THE DISTRICT OF COLUMBIA NEW ORLEANS AND ELSEWHERE DEFENDED MINORITY CONTRACT SET ASIDES AND PRESSED FOR CONTINUATION OF FORCED BUSING DECADES AFTER SEGREGATION HAD CEASED THOUGH MR. CLINTON PROFESSED HE WOULDN'T HAVE NOMINATED LANI GUINIER IF HE HAD KNOWN HER VIEWS MR. PATRICK'S IS THE LATEST IN AN UNBROKEN LINE OF APPOINTMENTS FROM THE RANKS OF THE SAME LIBERAL CIVIL RIGHTS ESTABLISHMENT THAT PRODUCED MS. GUINIER FOR HEAD OF THE U. S. COMMISSION ON CIVIL RIGHTS MR. CLINTON ELEVATED MARY FRANCES BERRY WHO IN NINETEEN EIGHTY FIVE OPINED THAT CIVIL RIGHTS LAWS WERE NOT PASSED TO GIVE CIVIL RIGHTS TO ALL AMERICANS BUT ONLY TO DISFAVORED GROUPS INCLUDING BLACKS HISPANICS AND WOMEN MS. BERRY IS SO STRIDENT THAT HER APPOINTMENT VIRTUALLY ENSURES THIS MORIBUND AGENCY CONTINUED IRRELEVANCY MEANWHILE NORMA CANTU ASSISTANT SECRETARY FOR CIVIL RIGHTS IN THE EDUCATION DEPARTMENT LITIGATED BUSING CASES FOR THE MEXICAN AMERICAN LEGAL DEFENSE AND EDUCATION FUND AND SHIRLEY WILCHER WHO MR. CLINTON TAPPED TO HEAD THE OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS AT THE LABOR DEPARTMENT TOILED IN THE EARLY EIGHTIES FOR THE WOMEN'S LEGAL DEFENSE FUND MS. CANTU HAS ALREADY TAKEN STEPS TO REVERSE PREVIOUS POLICIES RESTRICTING RACIAL CONSIDERATIONS IN COLLEGE SCHOLARSHIPS SINCE MR. PATRICK HAS NO PUBLISHED WRITINGS THE SENATE JUDICIARY COMMITTEE SHOULD CLOSELY QUESTION HIS POSITIONS ON KEY CIVIL RIGHTS ISSUES FOR INSTANCE DOES MR. PATRICK SUPPORT KEY SUPREME COURT PRECEDENTS THAT ONE REQUIRE A SHOWING OF DISCRIMINATORY INTENT TO ESTABLISH CONSTITUTIONAL VIOLATIONS TWO LIMIT RACE CONSCIOUS REMEDIES TO EXTREME CASES OF IDENTIFIED PAST DISCRIMINATION THAT CANNOT BE REDRESSED IN ANY OTHER MANNER AND THREE LET SCHOOL DISTRICTS FREE THEMSELVES FROM BUSING ORDERS AND RETURN TO LOCAL CONTROL AFTER DESEGREGATION ORDERS HAVE BEEN FULFILLED LDF FOR WHICH MR. PATRICK SERVED AS AN ATTORNEY AND OF WHICH HE IS NOW A DIRECTOR TOOK THE OPPOSITE POSITION IN ALL THESE CASES EITHER MR. PATRICK DOESN'T SHARE LDF'S PHILOSOPHY WHICH WOULD SEEM STRANGE OR HIS VIEWS ARE AT ODDS WITH THE MODERATE STANCE MR. CLINTON TOOK DURING THE CAMPAIGN IN EITHER CASE A BIGGER QUESTION PERSISTS WHY DOES MR. CLINTON RETURN TO THE SAME IDEOLOGICAL RETREADS FOR HIS CIVIL RIGHTS NOMINATIONS IN THE NEW YORK TIMES EARLIER THIS WEEK COLUMNIST ANTHONY LEWIS ATTACKS ME AND THIS NEWSPAPER ARGUING THAT MS. GUINIER WAS MISCHARACTERIZED IN THESE PAGES AS A QUOTA QUEEN THE LARGER ISSUE THOUGH IS NOT ONE SIMPLY OF QUOTAS ALTHOUGH I WAS CORRECT BUT THE PRESIDENT'S HABIT OF CHOOSING NOMINEES WHO VIEW THE WORLD THROUGH A RACIAL PRISM THIS TIME THE PRESIDENT COULD HAVE STRUCK A POSITIVE COURSE BY SELECTING LIBERALS WHO HAVE WRITTEN THOUGHTFULLY ABOUT THESE ISSUES SUCH AS STEPHEN CARTER OF YALE OR RANDALL KENNEDY OF HARVARD BUT MR. CLINTON UNFAILINGLY TAKES HIS CUES FROM A CIVIL RIGHTS ESTABLISHMENT THAT FOR TWENTY FIVE YEARS HAS HELD SWAY INSIDE THE WASHINGTON BELTWAY EVEN AS ITS INFLUENCE IN THE REAL WORLD HAS RAPIDLY DIMINISHED AS GROUPS LIKE LDF HAVE MOVED LEFT THEY'VE DISTANCED THEMSELVES FROM THEIR PURPORTED CONSTITUENTS WHICH SURVEYS OF MAINSTREAM BLACK AMERICANS DEMONSTRATE CONSISTENTLY IF MR. CLINTON PERSISTS IN LOOKING LEFT FOR CIVIL RIGHTS SOLUTIONS HE'LL KEEP HIS PARTY SHACKLED TO FAILED RACIALLY DIVISIVE POLICIES BUT MORE IMPORTANT HE WILL HAVE MISSED A GOLDEN OPPORTUNITY TO HEAL OUR NATION'S RACIAL WOUNDS MR. BOLICK IS LITIGATION DIRECTOR AT THE INSTITUTE FOR JUSTICE IN WASHINGTON THE GOVERNMENT'S JANUARY EMPLOYMENT REPORT WHICH WILL BE RELEASED FRIDAY WILL REFLECT AN ADJUSTMENT FOR THE NINETEEN NINETY CENSUS UNDERCOUNT OF THE U. S. POPULATION BUREAU OF LABOR STATISTICS OFFICIALS SAID THE CHANGE IS LIKELY TO BUMP THE UNEMPLOYMENT RATE UP ZERO POINT ONE PERCENTAGE POINT FOR THE WHOLE YEAR THE ONE TIME ADJUSTMENT IS SEPARATE FROM PREVIOUSLY ANNOUNCED CHANGES THAT WILL TAKE EFFECT WITH THE JANUARY REPORT THOSE CHANGES WHICH RESULT FROM A NEW QUESTIONNAIRE AND THE USE OF COMPUTERS TO RECORD SURVEY RESPONDENTS ARE EXPECTED TO KNOCK THE UNEMPLOYMENT RATE UP ZERO POINT FIVE PERCENTAGE POINT OVER TIME THE UNEMPLOYMENT RATE IN DECEMBER WAS SIX POINT FOUR PERCENT ADJUSTING FOR THE CENSUS UNDERCOUNT WILL BOOST THE ESTIMATED SIZE OF THE LABOR FORCE BY ROUGHLY ONE POINT ONE MILLION PEOPLE IT WILL INCREASE THE NUMBER OF EMPLOYED BY ABOUT NINE HUNDRED THIRTY FOUR THOUSAND AND SWELL THE RANKS OF UNEMPLOYED BY ABOUT TWO HUNDRED THOUSAND SAID THOMAS PLEWES ASSOCIATE B. L. S. COMMISSIONER THE NINETEEN NINETY CENSUS FAILED TO COUNT MANY INNER CITY DWELLERS PARTICULARLY HISPANICS AND BLACKS MR. PLEWES SAID THE UNDERCOUNT OF HISPANICS IS THE MAIN REASON THE UNEMPLOYMENT RATE WILL RISE BY ZERO POINT ONE PERCENTAGE POINT HISPANICS ARE A FAST GROWING SEGMENT OF THE POPULATION AND UNEMPLOYMENT IS HIGH AMONG THAT GROUP IN DECEMBER IT STOOD AT TEN POINT FIVE PERCENT TO FACILITATE HISTORICAL COMPARISONS THE BUREAU WILL PROVIDE UNEMPLOYMENT FIGURES FOR DECEMBER AND JANUARY USING BOTH THE OLD AND NEW METHODS THE B. L. S. ALSO SAID THAT WHEN THE NEW VERSION OF ITS CURRENT POPULATION SURVEY IS RELEASED THIS WEEK IT NO LONGER WILL CONTAIN SEPARATE EMPLOYMENT DATA ON VIETNAM VETERANS THE BUREAU SAID IT WILL CONTINUE TO KEEP TRACK OF THE DATA AND PEOPLE WILL BE ABLE TO CALL IN FOR THE INFORMATION FEDERATED DEPARTMENT STORES INCORPORATED NAMED TERRY J. LUNDGREN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS MERCHANDISING DIVISION THE DEPARTMENT STORE CHAIN'S NUMBER TWO MERCHANDISING POSITION MR. LUNDGREN FORTY ONE YEARS OLD HAS BEEN PRESIDENT AND CHIEF EXECUTIVE OF NEIMAN MARCUS STORES IN DALLAS A UNIT OF NEIMAN MARCUS GROUP INCORPORATED CHESTNUT HILL MASSACHUSETTS HE WILL TAKE OVER FEDERATED'S NEW YORK BASED MERCHANDISING OPERATION IN EARLY APRIL AFTER HIS CONTRACT WITH NEIMAN MARCUS EXPIRES HE'LL REPORT TO ALLEN QUESTROM FEDERATED'S CHAIRMAN AND CHIEF EXECUTIVE AND ITS TOP MERCHANT FOR FEDERATED FEDERATED MERCHANDISING IS A CRUCIAL UNIT THAT COORDINATES THE BUYING FROM DESIGNERS AND MANUFACTURERS AND DEVELOPS ITS OWN PRIVATE LABEL MERCHANDISE OVERSEEING TWO HUNDRED FORTY MERCHANDISING STAFFERS MR. LUNDGREN WILL DIRECT FEDERATED'S QUOTE CENTRALIZED TEAM BUYING QUOTE IN PICKING MERCHANDISE FOR FEDERATED'S TWO HUNDRED EIGHTEEN DEPARTMENT STORES THAT OPERATE UNDER THE NAMES ABRAHAM AND STRAUS BLOOMINGDALE'S AND BURDINES AMONG OTHERS IN TWENTY SIX STATES HE FILLS A POST LEFT OPEN SINCE LAST YEAR WHEN ROGER N. FARAH LEFT TO BECOME HEAD MERCHANT AT R. H. MACY AND COMPANY FEDERATED'S RIVAL AND THE COMPANY WITH WHICH FEDERATED HAS SAID IT WANTS TO MERGE MR. LUNDGREN JOINED NEIMAN MARCUS IN NINETEEN EIGHTY EIGHT WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF NEIMAN MARCUS STORES IN NINETEEN NINETY AND LAST YEAR ADDED THE TITLE OF CHAIRMAN AND RETAINED THE TITLE OF CHIEF EXECUTIVE THE MOVE LEAVES NEIMAN MARCUS SEARCHING FOR SOMEONE TO SUSTAIN THE IMPROVING IMAGE OF THE TWENTY SEVEN STORE UPSCALE SPECIALTY RETAILING CHAIN ROBERT J. TARR JUNIOR PRESIDENT AND CHIEF EXECUTIVE OF NEIMAN MARCUS GROUP SAID A SEARCH HAS BEGUN FOR A SUCCESSOR GENE E. BURLESON FIFTY THREE YEAR OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS ELECTED TO THE ADDITIONAL POST OF CHAIRMAN HE SUCCEEDS ROY E. CHRISTENSEN SIXTY WHO RESIGNED GRANCARE CURRENTLY OPERATES EIGHTY LONG TERM HEALTH CARE FACILITIES NURSING HOME OPERATOR MULTICARE COMPANIES HACKENSACK N. J. SAID IT AGREED TO ACQUIRE PROVIDENCE HEALTH CARE INCORPORATED A BEREA OHIO PROVIDER OF LONG TERM NURSING CARE FOR TWENTY SEVEN POINT EIGHT MILLION DOLLARS MULTICARE SAID IT WILL PAY SEVEN DOLLARS AND FIFTY CENTS A SHARE FOR PROVIDENCE'S THREE POINT SEVEN MILLION SHARES OUTSTANDING WITH OTHER COSTS SUCH AS SEVERANCE AND TRANSACTION EXPENSES ARE ADDED MULTICARE SAID THE TOTAL TRANSACTION COST WILL BE CLOSER TO THIRTY MILLION DOLLARS NEWS OF THE DEAL HELPED PROPEL PROVIDENCE'S SHARES UP ONE POINT SIX TWO FIVE DOLLARS OR TWENTY EIGHT PERCENT TO SEVEN POINT THREE SEVEN FIVE DOLLARS ON HEAVY VOLUME IN THE NASDAQ SMALLCAP MARKET MULTICARE EDGED UP TWELVE POINT FIVE CENTS TO EIGHTEEN POINT EIGHT SEVEN FIVE DOLLARS IN LATE NASDAQ TRADING THE PACT COMES NEARLY SIX WEEKS AFTER PROVIDENCE AGREED TO PUT ITSELF UP FOR SALE AS PART OF AN AGREEMENT WITH A DISSIDENT INVESTOR GROUP COMMONWEALTH ASSOCIATES OF NEW YORK MULTICARE PRESIDENT AND CO CHIEF EXECUTIVE DANIEL STRAUS SAID THE ACQUISITION WILL STRENGTHEN MIDWESTERN OPERATIONS AND EXPAND FACILITIES TO FIFTY TWO FROM THIRTY SIX TEXAS COTTON IS GOING GREEN BUOYED BY CONSUMER DEMAND FOR CHEMICAL FREE PRODUCTS THE STATE'S COTTON FARMERS LAST YEAR MORE THAN TRIPLED THE NUMBER OF ACRES PLANTED WITH ORGANIC AND PESTICIDE FREE COTTON THE SURGE HAS MEANT NEW BUSINESS FOR TEXAS COTTON MILLS AND CAUGHT THE ATTENTION OF BUYERS IN EUROPE AND JAPAN AND NOW SOME APPAREL MANUFACTURERS AND EXPORT COMPANIES ARE OPENING OFFICES IN TEXAS TO BE CLOSER TO THE SUPPLY QUOTE WE ACTUALLY TURNED PEOPLE DOWN LAST YEAR BECAUSE WE DIDN'T HAVE ENOUGH COTTON QUOTE SAYS LA RHEA PEPPER A MEMBER OF THE TEXAS ORGANIC COTTON MARKETING COOPERATIVE IN LUBBOCK WHO FARMS ABOUT SEVEN HUNDRED ACRES OF ORGANIC AND SO CALLED TRANSITIONAL ORGANIC COTTON IT'S ALMOST LIKE THE MARKET IS JUST EXPLODING MS. PEPPER SAYS I'VE HAD PEOPLE WHO WERE PLACING TEN THOUSAND POUND ORDERS IN THE PAST AND I'M DOING EIGHTY THOUSAND POUND ORDERS FOR THEM NOW DESPITE ORGANIC COTTON'S RAPID GROWTH IT REPRESENTS JUST A FRACTION OF THE STATE'S COTTON INDUSTRY IN NINETEEN NINETY THREE TEXAS COTTON FARMERS PLANTED FIFTEEN THOUSAND ACRES OF ORGANIC OR TRANSITIONAL ORGANIC COTTON STATE OFFICIALS DON'T CERTIFY COTTON AS TRULY ORGANIC UNTIL IT HAS BEEN PESTICIDE AND CHEMICAL FREE FOR THREE YEARS THAT'S A BIG RISE FROM FIVE HUNDRED ACRES IN NINETEEN NINETY ONE BUT IT PALES NEXT TO THE MORE THAN FIVE MILLION ACRES PLANTED LAST YEAR BY THE STATE'S TRADITIONAL COTTON FARMERS TEXAS IS THE NATION'S NUMBER ONE PRODUCER OF BOTH TRADITIONAL AND ORGANIC COTTON SAYS THE NATIONAL COTTON COUNCIL IN MEMPHIS ORGANIC COTTON IS STILL CONSIDERED HIGH RISK BY MANY FARMERS THEY VIEW THE DEMAND FOR IT AS A FAD DESTINED TO GO THE WAY OF DISCO AND PET ROCKS IN ADDITION ORGANIC COTTON IS MORE LABOR INTENSIVE AND SO IT CAN BE MORE EXPENSIVE TO PRODUCE THOUGH THE FIBERS FROM ORGANIC AND CONVENTIONAL COTTON PLANTS ARE THE SAME RESEARCHERS ARE HAVING PROBLEMS FINDING NATURAL SUBSTITUTES FOR THE MAN MADE CHEMICALS USED TO SPIN WEAVE AND DYE CONVENTIONAL COTTON CHEMICALS THAT WOULD SHRINK THE APPEAL OF ORGANIC COTTON NEVERTHELESS MANY APPAREL MAKERS AND EXPORTERS ARE SOLD ON THE TEXAS ORGANIC FIBER GLENN STINEBAUGH PRESIDENT OF JONATHAN DAVID APPAREL WHICH SELLS CLOTHING UNDER THE TRADEMARK ENVIROGANICS IS NEGOTIATING TO MOVE MOST OF HIS COMPANY'S OPERATIONS TO DALLAS FROM DOWNEY CALIFORNIA TO BE CLOSER TO THE ORGANIC COTTON SUPPLY THOUGH CALIFORNIA IS NUMBER TWO IN PRODUCTION OF ORGANIC COTTON MR. STINEBAUGH SAYS HE WILL BUY ONLY FROM TEXAS THE REASON HE SAYS IS THE STATE'S STRINGENT CERTIFICATION STANDARDS WHICH CREATE A PAPER TRAIL BACK TO THE FARMER SHOWING THE COTTON WAS GROWN ORGANICALLY TEXAS HAS MORE THAN THE CERTIFICATION PROGRAM ON ITS SIDE THE STATE'S WEATHER PARTICULARLY IN THE HIGH PLAINS NEAR LUBBOCK GIVES FARMERS HERE AN EDGE OVER THOSE IN OTHER PARTS OF THE COUNTRY LOW RAINFALL AIDS IN PEST CONTROL FOR WHICH ORGANIC FARMERS ALSO USE BENEFICIAL INSECTS SUCH AS LADYBUGS AND LACEWINGS AND A RELIABLE NATURAL FREEZE IN LATE FALL MEANS THEY DON'T HAVE TO USE HERBICIDES TO KILL THE PLANTS FOR HARVEST BUT WHILE ORGANIC COTTON FARMERS DON'T USE EXPENSIVE CHEMICALS FERTILIZERS AND PESTICIDES THE CROP CAN BE MORE EXPENSIVE THAN TRADITIONAL COTTON WEED CONTROL FOR EXAMPLE MEANS PULLING WEEDS BY HAND FARMERS SAY THAT COSTS TWENTY DOLLARS TO EIGHTY DOLLARS AN ACRE VERSUS ABOUT SEVEN DOLLARS AN ACRE FOR SPRAYING ORGANIC FARMING CALLS FOR NATURAL FERTILIZERS LIKE COMPOST AND MANURE BUT WITHOUT CHEMICAL FERTILIZERS THE LAND REQUIRES MORE PREPARATION AND MOST FARMERS LEAVE AT LEAST ONE THIRD OF THEIR ORGANIC FARMLAND IDLE FOR A SEASON TO LET IT REJUVENATE BUT ORGANIC FARMERS EARN MORE FOR THEIR CROP THIS YEAR CONVENTIONAL COTTON HAS SOLD FOR ABOUT SIXTY TWO CENTS A POUND WHILE ORGANIC COTTON HAS FETCHED UP TO ONE DOLLAR AND THIRTY FIVE CENTS ONE OF THE BIGGEST PROBLEMS FACING ORGANIC FARMERS IS A LACK OF MARKETING INFRASTRUCTURE FOR THE PRODUCT AS SOON AS TRADITIONAL FARMERS HARVEST THEIR CROP THEY SELL IT TO BROKERS WHO THEN RESELL THE PRODUCT TO MILLS AND OTHER BUYERS BUT ORGANIC FARMERS DON'T HAVE A STRONG BROKER NETWORK OFTEN THEY MUST FIND BUYERS PIECEMEAL OVER MANY MONTHS THAT'S A BIG CHANGE FOR THE AVERAGE PRODUCER'S MIND SET MS. PEPPER SAYS TO REMEDY THIS ABOUT FORTY HIGH PLAINS COTTON FARMERS IN OCTOBER FORMED THE TEXAS ORGANIC COTTON MARKETING COOPERATIVE GROWING COTTON WITHOUT CHEMICALS IS ONLY HALF THE BATTLE CLEANING PROCESSING AND SPINNING THE COTTON AS WELL AS FINISHING AND DYEING THE FABRIC ALL REQUIRE HEAVY CHEMICALS RESEARCHERS AT TEXAS TECH UNIVERSITY'S INTERNATIONAL TEXTILE CENTER ARE SEEKING WAYS TO USE NATURAL PRODUCTS AND HAVE IDENTIFIED SOME SUBSTITUTES BUT ORGANIC COTTON IS ALREADY FINDING SOME OF THE BIG CUSTOMERS IT WILL NEED TO SUCCEED APPAREL MAKERS LIKE ESPRIT DE CORPORATION AND GAP INCORPORATED BOTH OF SAN FRANCISCO OFFER ORGANIC COTTON LINES AS DO SOME MAKERS OF FURNITURE AND BABY CLOTHES BRENT WISEMAN COORDINATOR OF ORGANIC PROGRAMS AT THE TEXAS AGRICULTURE DEPARTMENT PREDICTS THAT AS MUCH AS TWENTY FIVE PERCENT OF THE ORGANIC COTTON SUPPLY WILL BE SHIPPED TO JAPANESE BROKERS AND MANUFACTURERS KATAN HOUSE JAPAN INCORPORATED A SAN ANTONIO TRADING HOUSE SET UP FOR THAT PURPOSE BY JAPANESE INVESTORS PLANS TO ORDER TWO THOUSAND BALES FOUR HUNDRED EIGHTY POUNDS EACH THIS YEAR MISSION VALLEY TEXTILES INCORPORATED A NEW BRAUNFELS TEXTILE MAKER PLANS TO BUY ONE MILLION POUNDS OF ORGANIC COTTON FROM TEXAS GROWERS THIS YEAR DON COMPTON DIRECTOR OF PRODUCT DEVELOPMENT SAYS ORGANICS STILL MAKE UP LESS THAN ONE PERCENT OF MISSION VALLEY'S PRODUCTION AND CAN POSE A DILEMMA FOR MANUFACTURERS YOU DON'T WANT TO MAKE TOO BIG A DEAL ABOUT THE ORGANICS BECAUSE PEOPLE MIGHT THINK THE REGULAR GOODS AREN'T ANY GOOD HE SAYS AND THOUGH CONSUMER DEMAND NOW OUTWEIGHS SUPPLY EVEN ORGANIC COTTON'S STRONGEST SUPPORTERS AREN'T SURE HOW BIGOR LASTING THE MARKET REALLY IS QUOTE I DON'T KNOW WHETHER IT'S GOING TO BE LIKE THE HULA HOOP AND DROP OUT NEXT YEAR OR IF IT'S GOING TO CONTINUE TO GROW QUOTE SAYS HARVIN SMITH ASSISTANT DIRECTOR FOR THE TEXTILE CENTER AT TEXAS TECH AMERICAN HONDA MOTOR COMPANY SAID IT PLANS TO EXPORT SEVENTY FIVE THOUSAND NORTH AMERICAN MADE CARS TO MORE THAN THIRTY COUNTRIES THIS YEAR LAST YEAR THE AUTO MAKER A UNIT OF HONDA MOTOR COMPANY OF JAPAN EXPORTED FORTY THREE THOUSAND THREE HUNDRED TWENTY EIGHT CARS TO TWENTY EIGHT COUNTRIES EXPORTS OF THE ACCORD REACHED TWENTY TWO THOUSAND FOUR HUNDRED EIGHTY NINE IN NINETEEN NINETY THREE WHILE CIVIC EXPORTS ROSE TO NINETEEN THOUSAND TWO HUNDRED FIVE VEHICLES LAST YEAR NEARLY FIFTY SEVEN PERCENT OF HONDA'S NINETEEN NINETY THREE EXPORTS WERE RIGHT HAND DRIVE MODELS FOR JAPAN AND THE U. K. THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ALUMINUM COMPANY OF AMERICA TWO HUNDRED FIFTY MILLION DOLLARS OF NOTES DUE FEBRUARY FIRST TWO THOUSAND ONE PRICED AS FIVE POINT SEVEN FIVES AT NINETY NINE POINT SIX OH ONE TO YIELD FIVE POINT EIGHT TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FORTY BASIS POINTS ABOVE TREASURYS RATED SINGLE A TWO BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE A PLUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY C. S. FIRST BOSTON INCORPORATED FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED MILLION DOLLARS OF FLOATING RATE NOTES DUE FEBRUARY TENTH NINETEEN NINETY SEVEN PRICED AT PAR ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WILL FLOAT MONTHLY AND PAY QUARTERLY AT THREE BASIS POINTS ABOVE THE COST OF FUNDS INDEX CURRENTLY AT THREE POINT EIGHT SEVEN NINE PERCENT THE FIRST COUPON WILL BE SET MONDAY THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION ONE HUNDRED MILLION DOLLARS OF STEP UP MEDIUM TERM NOTES DUE FEBRUARY SIXTEENTH NINETEEN NINETY NINE PRICED AT PAR TO YIELD FOUR POINT EIGHT PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE COUPON RISES TO FIVE POINT SEVEN TWO PERCENT ON FEBRUARY SIXTEENTH NINETEEN NINETY SIX THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF TWENTY THREE POINT FOUR BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS INCORPORATED G. T. E. CALIFORNIA INCORPORATED THREE HUNDRED MILLION DOLLARS OF DEBENTURES PRICED THROUGH A COMPETITIVE BID WON BY MORGAN STANLEY AND COMPANY THE DEBENTURES DUE FEBRUARY FIRST TWO THOUSAND ONE WERE PRICED AS FIVE POINT SIX TWO FIVES AT NINETY NINE POINT ONE ONE EIGHT FOUR TO YIELD FIVE POINT SEVEN EIGHT PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF THIRTY SIX BASIS POINTS ABOVE TREASURYS THE DEBENTURES ARE RATED SINGLE A ONE BY MOODY'S AND SINGLE A PLUS BY S. AND P. G. T. E. CALIFORNIA IS A UNIT OF G. T. E. CORPORATION MORGAN STANLEY FINANCE P. L. C. TWO HUNDRED MILLION DOLLARS OF CAPITAL UNITS PRICED WITH A SEVEN POINT EIGHT PERCENT DIVIDEND YIELD ACCORDING TO M. C. M. CORPORATEWATCH THE COMPANY SOLD EIGHT MILLION UNITS PRICED AT TWENTY FIVE DOLLARS APIECE THE UNITS WHICH ARE NONCALLABLE FOR FIVE YEARS ARE RATED SINGLE A TWO BY MOODY'S AND SINGLE A MINUS BY S. AND P. THE UNITS MATURE IN TWENTY YEARS IF THEY AREN'T CONVERTED INTO PREFERRED STOCK THE UNITS CAN CONVERT INTO PREFERRED ANYTIME AFTER THE FIRST YEAR AT THE COMPANY'S OPTION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY AND COMPANY MORGAN STANLEY FINANCE IS A UNIT OF MORGAN STANLEY GROUP INCORPORATED PROPERTY TRUST OF AMERICA TWO HUNDRED MILLION DOLLARS TWO PART ISSUE OF NOTES PRICED BY UNDERWRITERS LED BY J. P. MORGAN SECURITIES INCORPORATED ACCORDING TO M. C. M. CORPORATEWATCH THE FIRST TRANCHE ONE HUNDRED MILLION DOLLARS OF NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND EIGHT WAS PRICED AS SIX POINT EIGHT SEVEN FIVES AT NINETY NINE POINT SIX NINE ONE TO YIELD SIX POINT NINE ONE SEVEN PERCENT THE NOTES WERE PRICED AT A SPREAD OF ONE HUNDRED TWENTY BASIS POINTS ABOVE TREASURYS AND THE AVERAGE LIFE IS TEN POINT FIVE YEARS THE SECOND TRANCHE ONE HUNDRED MILLION DOLLARS OF NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND FOURTEEN WAS PRICED AS SEVEN POINT FIVES AT NINETY EIGHT POINT NINE OH TWO TO YIELD SEVEN POINT SIX ONE THREE PERCENT THE NOTES WERE PRICED AT A SPREAD OF ONE HUNDRED TWENTY BASIS POINTS ABOVE TREASURYS AND THE AVERAGE LIFE IS EIGHTEEN YEARS BOTH PARTS ARE RATED B. A A TWO BY MOODY'S AND SINGLE A MINUS BY S. AND P. AND BOTH AMORTIZE UNOCAL CORPORATION TWO HUNDRED MILLION DOLLARS OF NOTES DUE FEBRUARY FIRST TWO THOUSAND FOUR PRICED AS SIX POINT THREE SEVEN FIVES AT NINETY NINE POINT SEVEN TWO EIGHT TO YIELD SIX POINT FOUR ONE TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SIXTY NINE BASIS POINTS ABOVE TREASURYS RATED B. A A TWO BY AND TRIPLE B. BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY BOWATER INCORPORATED SEVENTY FIVE MILLION DOLLARS OF CUMULATIVE PERPETUAL PREFERRED STOCK PRICED WITH A EIGHT POINT FOUR PERCENT DIVIDEND YIELD ACCORDING TO M. C. M. CORPORATEWATCH THE COMPANY SOLD THREE MILLION SHARES AT TWENTY FIVE DOLLARS APIECE THE PREFERRED WHICH IS NONCALLABLE FOR FIVE YEARS IS RATED B. A A TWO BY MOODY'S AND DOUBLE B. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY ESMOR CORRECTIONAL SERVICES INCORPORATED INITIAL OFFERING OF EIGHT HUNDRED THIRTY THREE THOUSAND THREE HUNDRED THIRTY THREE COMMON SHARES PRICED AT SIX DOLLARS AND TWENTY FIVE CENTS APIECE THROUGH UNDERWRITERS LED BY JANNEY MONTGOMERY SCOTT MAPINFO CORPORATION INITIAL PUBLIC OFFERING OF ONE POINT FOUR MILLION SHARES PRICED AT NINETEEN DOLLARS APIECE THROUGH UNDERWRITERS ROBERTSON STEPHENS AND COMPANY ALEXANDER BROWN AND SONS INCORPORATED AND FIRST ALBANY CORPORATION PARCPLACE SYSTEMS INCORPORATED INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT FIFTEEN DOLLARS AND FIFTY CENTS APIECE THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS AND COMPANY QUIZNO'S FRANCHISE CORPORATION INITIAL PUBLIC OFFERING OF ONE MILLION COMMON SHARES PRICED AT FIVE DOLLARS APIECE THROUGH MANAGER ROCKY MOUNTAIN SECURITIES AND INVESTMENTS INCORPORATED GWINNETT COUNTY GEORGIA SCHOOL DISTRICT ONE HUNDRED FORTY ONE POINT FIVE MILLION DOLLARS IMPROVEMENT BONDS APPARENTLY WON BY A J. P. MORGAN SECURITIES INCORPORATED GROUP WITH A BID SETTING THE NET INTEREST COST AT FOUR POINT FIVE EIGHT NINE SIX PERCENT YIELDS FOR REOFFERED BONDS RANGE FROM THREE POINT ONE PERCENT IN NINETEEN NINETY SIX TO FIVE PERCENT IN TWO THOUSAND THIRTEEN TO TWO THOUSAND FIFTEEN MOODY'S HAS RATED THE BONDS DOUBLE A ONE AND S. AND P. HAS ASSIGNED A DOUBLE A RATING LOS ANGELES DEPARTMENT OF WATER AND POWER TWO HUNDRED SEVENTY SEVEN MILLION DOLLARS TWO PART BOND ISSUE APPARENTLY WON BY A C. S. FIRST BOSTON INCORPORATED GROUP AND A MERRILL LYNCH AND COMPANY GROUP C. S. FIRST BOSTON IS BELIEVED TO HAVE WON THE ONE HUNDRED NINETY TWO POINT ONE MILLION DOLLAR ELECTRIC PLANT REFUNDING REVENUE BONDS WITH A BID SETTING THE TRUE INTEREST COST AT FOUR POINT SEVEN SEVEN EIGHT SEVEN PERCENT YIELDS FOR THOSE BONDS RANGE FROM THREE POINT TWO PERCENT IN NINETEEN NINETY SIX TO FIVE POINT TWO FIVE PERCENT IN TWO THOUSAND SIXTEEN TO TWO THOUSAND EIGHTEEN THE EIGHTY FIVE MILLION DOLLAR ELECTRIC PLANT REVENUE BONDS WERE APPARENTLY WON BY MERRILL LYNCH WITH A BID SETTING THE TRUE INTEREST COST AT FIVE POINT TWO EIGHT PERCENT THOSE BONDS WERE GIVEN YIELDS THAT RANGE FROM FOUR POINT ONE PERCENT IN TWO THOUSAND TO FIVE POINT FOUR PERCENT IN TWO THOUSAND THIRTY FOUR BOTH MOODY'S AND S. AND P. HAVE RATED THE BONDS DOUBLE A NEW HAMPSHIRE ONE HUNDRED FIVE MILLION DOLLARS NINETEEN NINETY FOUR SERIES TURNPIKE SYSTEM REVENUE BONDS PRICED BY A BEAR STEARNS AND COMPANY GROUP YIELDS FOR REOFFERED BONDS RANGE FROM THREE POINT THREE FIVE PERCENT IN NINETEEN NINETY SIX TO FIVE POINT THREE FIVE PERCENT IN TWO THOUSAND NINETEEN THE ISSUE HAS SINGLE A RATINGS FROM MOODY'S S. AND P. AND FITCH INVESTORS SERVICE INCORPORATED NEW YORK TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY SIX HUNDRED SIXTY POINT ONE MILLION DOLLARS SERIES NINETEEN NINETY FOUR A GENERAL PURPOSE REVENUE BONDS PRICED BY A BEAR STEARNS AND COMPANY GROUP YIELDS RANGE FROM TWO POINT FIVE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT TWO EIGHT PERCENT IN TWO THOUSAND TWENTY FOUR MOODY'S HAS RATED THE BONDS DOUBLE A AND S. AND P. HAS ASSIGNED A SINGLE A PLUS RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION TWO POINT TWO EIGHT BILLION DOLLAR OFFERING OF STRIPPED MORTGAGE BACKED SECURITIES TRUST TWO HUNDRED FIFTY SEVEN BACKED BY THE AGENCY'S THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT FOUR EIGHT PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF TWENTY NINE POINT EIGHT YEARS UNDERWRITERS INCLUDE J. P. MORGAN SECURITIES INCORPORATED PRUDENTIAL SECURITIES INCORPORATED BEAR STEARNS AND COMPANY U. B. S. SECURITIES INCORPORATED GOLDMAN SACHS AND COMPANY KIDDER PEABODY AND COMPANY MERRILL LYNCH AND COMPANY NIKKO SECURITIES COMPANY INTERNATIONAL DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION LEHMAN BROTHERS INCORPORATED AND NOMURA SECURITIES INTERNATIONAL INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION ONE POINT ONE THREE BILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY AND COMPANY THE OFFERING SERIES NINETEEN NINETY FOUR TO THIRTY THREE IS BACKED BY THE AGENCY'S FIFTEEN YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT ONE PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF ONE HUNDRED SEVENTY NINE MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION FIVE HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY C. S. FIRST BOSTON INCORPORATED THE OFFERING SERIES NINETEEN NINETY FOUR TO THIRTY TWO IS BACKED BY THE AGENCY'S FIFTEEN YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF ONE HUNDRED SEVENTY EIGHT MONTHS BAYERISCHE HYPOTHEKEN UND WECHSELBANK GERMANY ONE HUNDRED FIFTEEN MILLION SWISS FRANCS OF TWO POINT TWO FIVE PERCENT PUBLIC BONDS DUE MARCH EIGHTH TWO THOUSAND ONE PRICED AT PAR WITH WARRANTS ATTACHED FOR PURCHASE OF GOLD VIA SWISS BANK CORPORATION WARRANTS EXERCISABLE FROM MARCH FIFTEENTH TO FEBRUARY TWENTY SEVENTH NINETEEN NINETY SIX TO PURCHASE GOLD AT YESTERDAY'S LONDON GOLD FIXING PRICE WHEN TERMS WERE TO BE FIXED FEES TWO POINT FIVE ICELAND SOVEREIGN TWO HUNDRED MILLION DOLLARS OF NOTES DUE FEBRUARY FIRST TWO THOUSAND FOUR PRICED AS SIX POINT ONE TWO FIVES AT NINETY EIGHT POINT EIGHT ONE TO YIELD SIX POINT TWO EIGHT SEVEN PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FIFTY SEVEN BASIS POINTS ABOVE TREASURYS RATED SINGLE A TWO BY MOODY'S AND SINGLE A BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY J. P. MORGAN SECURITIES INCORPORATED JAPAN FINANCE CORPORATION FOR MUNICIPAL ENTERPRISES JAPANESE AGENCY ONE HUNDRED MILLION POUNDS OF SIX POINT THREE SEVEN FIVE PERCENT EUROBONDS DUE MARCH NINTH TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE NINETY NINE POINT EIGHT ONE VIA S. G. WARBURG SECURITIES LIMITED BONDS YIELD SIX POINT FOUR OH ONE PERCENT MARGIN OF TWELVE BASIS POINTS OVER COMPARABLE BRITISH GILT GUARANTOR GOVERNMENT OF JAPAN FEES ZERO POINT THREE TWO FIVE KOMMUNINVEST I. SVERIGE A. B. SWEDEN NINETY MILLION SWISS FRANCS OF FOUR PERCENT PRIVATELY PLACED NOTES DUE MARCH FOURTEENTH NINETEEN NINETY SEVEN PRICED AT ONE HUNDRED TWO POINT ONE VIA CREDIT SUISSE FEES ONE POINT TWO FIVE NEDERLANDSE WATERSCHAPSBANK N. V. NETHERLANDS THREE HUNDRED MILLION GUILDERS OF FIVE POINT SEVEN FIVE PERCENT EUROBONDS DUE MARCH SECOND TWO THOUSAND FOUR AT ISSUE PRICE NINETY NINE POINT EIGHT SEVEN VIA I. N. G. BANK N. V. REOFFERED AT NINETY NINE POINT ONE TWO TO YIELD FIVE POINT EIGHT SIX NINE PERCENT A MARGIN OF TWENTY THREE BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE NITORI COMPANY JAPAN EIGHTY MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE FEBRUARY SEVENTEENTH NINETEEN NINETY EIGHT WITH EQUITY PURCHASE WARRANTS CARRYING ZERO POINT THREE SEVEN FIVE PERCENT COUPON AT PAR VIA SWISS BANK CORPORATION WARRANTS EXERCISABLE FROM MARCH SECOND TO FEBRUARY SIXTH NINETEEN NINETY EIGHT TO PURCHASE COMPANY SHARES AT EXPECTED PREMIUM TWO POINT FIVE PERCENT TERMS ARE TO BE FIXED MONDAY FEES ONE POINT SIX TWO FIVE PORTUGAL SOVEREIGN SEVEN HUNDRED FIFTY MILLION E. C. U.S OF SIX PERCENT GLOBAL BONDS DUE FEBRUARY SIXTEENTH TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE NINETY EIGHT POINT THREE TWO FIVE VIA DRESDNER BANK A. G. MORGAN STANLEY INTERNATIONAL AND PARIBAS CAPITAL MARKETS BONDS YIELD SIX POINT TWO THREE PERCENT A MARGIN OF TWENTY EIGHT BASIS POINTS OVER COMPARABLE E. C. U. FRENCH TREASURY FEES ZERO POINT THREE FIVE POINT TATA IRON AND STEEL COMPANY INDIA ONE HUNDRED MILLION DOLLARS OF CONVERTIBLE EUROBONDS DUE APRIL FIRST NINETEEN NINETY NINE AT ISSUE PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LIMITED INDICATED COUPON TWO POINT TWO FIVE PERCENT TO TWO POINT SEVEN FIVE PERCENT BONDS CONVERTIBLE INTO GLOBAL DEPOSITORY RECEIPTS REPRESENTING SHARES IN COMPANY AT INDICATED PREMIUM TEN PERCENT TO FIFTEEN PERCENT FROM APRIL FIRST TO MARCH SECOND NINETEEN NINETY NINE TERMS ARE TO BE FIXED BY TOMORROW AFTER THREE YEARS BONDS ARE CALLABLE IF SHARE PRICE AT LEAST ONE HUNDRED THIRTY PERCENT OF CONVERSION PRICE FEES TWO POINT FIVE TOMOE CORPORATION JAPAN SEVENTY MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE FEBRUARY TWENTY FOURTH NINETEEN NINETY EIGHT WITH EQUITY PURCHASE WARRANTS CARRYING ZERO POINT THREE SEVEN FIVE PERCENT COUPON AT PAR VIA BANCA DEL GOTTARDO WARRANTS EXERCISABLE FROM MARCH TENTH TO FEBRUARY TENTH NINETEEN NINETY EIGHT TO PURCHASE SHARES AT EXPECTED PREMIUM TWO POINT FIVE PERCENT TERMS ARE TO BE FIXED MONDAY FEES ONE POINT SIX TWO FIVE VOLKSWAGEN INTERNATIONAL FINANCE N. V. GERMAN PARENT FIVE HUNDRED MILLION MARKS OF FIVE POINT THREE SEVEN FIVE PERCENT EUROBONDS DUE MARCH FIRST NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED TWO VIA C. S. F. B. EFFECTENBANK A. G. REOFFERED AT NINETY NINE POINT EIGHT TO YIELD FIVE POINT FOUR TWO PERCENT A MARGIN OF THIRTY TWO BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT NOTE GUARANTOR VOLKSWAGEN A. G. FEES TWO TRANSCO ENERGY COMPANY SAID THAT A NATURAL GAS LINE BELONGING TO ITS TRANSCONTINENTAL GAS PIPE LINE CORPORATION UNIT IN ROCKVILLE MARYLAND WAS PUNCTURED AFTER IT WAS STRUCK BY CONSTRUCTION EQUIPMENT A TWELVE MILE SECTION OF THE PIPELINE LOCATED NEAR ROUTE TWENTY EIGHT AND RESEARCH BOULEVARD IN ROCKVILLE WAS SHUT DOWN MINUTES AFTER THE INCIDENT YESTERDAY MORNING THE COMPANY SAID THERE WERE NO INJURIES EXPLOSION OR FIRE ALTHOUGH AUTHORITIES EVACUATED BUSINESSES AND RESIDENTS ACCORDING TO THE ASSOCIATED PRESS THEY LATER REOPENED THE AREA TRANSCO SAID THE PIPELINE WAS PUNCTURED BY A BACKHOE WORKING IN THE AREA THE CONSTRUCTION WORK WAS BEING PERFORMED BY A THIRD PARTY ON THE COMPANY'S RIGHT OF WAY THE BROKEN LINE IS ONE OF FOUR RUNNING THROUGH THE AREA FROM THE GULF COAST AND SUPPLYING MUCH OF THE EAST TRANSCO SAID REPAIRS ARE EXPECTED TO BE COMPLETE THIS WEEK THE COMPANY SAID IT DOESN'T ANTICIPATE ANY DISRUPTION IN SERVICE BECAUSE GAS WAS REROUTED TO THE OTHER LINES KAREN HASTIE WILLIAMS A PARTNER IN THE LAW FIRM OF CROWELL AND MORING WAS ELECTED A DIRECTOR OF THIS FINANCIAL SERVICES CONCERN THAT SPECIALIZES IN RETIREMENT SAVINGS PRODUCTS AND SERVICES MS. WILLIAMS FORTY NINE YEARS OLD FILLS THE VACANCY CREATED BY THE RETIREMENT OF WAYNE M. HOFFMAN SEVENTY DAVID MULLINS VICE CHAIRMAN OF THE FEDERAL RESERVE BOARD RESIGNED TO GO INTO THE HIGH TECHNOLOGY MONEY MANAGEMENT BUSINESS WITH A GROUP OF PROMINENT EXILES FROM SALOMON BROTHERS INCORPORATED'S BOND ARBITRAGE DESK MR. MULLINS'S UNEXPECTED RESIGNATION COINCIDES WITH THE EXPIRATION OF WAYNE ANGELL'S TERM AS A FED GOVERNOR ALLOWING PRESIDENT CLINTON TO FILL TWO OF THE FED'S SEVEN SEATS AT A PIVOTAL MOMENT AS FED CHAIRMAN ALAN GREENSPAN MADE CLEAR EARLIER THIS WEEK THE FED IS NOW CONTEMPLATING WHEN TO RAISE SHORT TERM INTEREST RATES AND HOW MUCH THE WHITE HOUSE HOPES THE FED WON'T MOVE SOON AND WHEN IT DOES THAT IT WON'T MOVE RATES UP VERY MUCH PUTTING TWO OF ITS OWN APPOINTEES ON THE BOARD CAN'T HURT QUOTE TWO OUT OF SEVEN NOW THAT'S REAL LEVERAGE QUOTE REPRESENTATIVE BARNEY FRANK D. MASSACHUSETTS SAID YESTERDAY MR. MULLINS'S TERM WOULD HAVE EXTENDED UNTIL JANUARY NINETEEN NINETY SIX MR. GREENSPAN'S TERM AS CHAIRMAN LASTS UNTIL MARCH NINETEEN NINETY SIX BOND PRICES REACTED NEGATIVELY TO MR. MULLINS'S RESIGNATION IN PART BECAUSE IT WILL GIVE THE CLINTON ADMINISTRATION A GREATER CHANCE TO INFLUENCE THE MAKEUP OF THE BOARD MR. MULLINS WILL BECOME A PARTNER AT LONG TERM CAPITAL MANAGEMENT A GREENWICH CONNECTICUT FIRM FOUNDED LAST SEPTEMBER BY JOHN MERIWETHER THE FORMER SALOMON BROTHERS VICE CHAIRMAN WHO WAS FORCED OUT AFTER THE NINETEEN NINETY ONE TREASURY SECURITIES SCANDAL AT THE FIRM A UNIT OF SALOMON INCORPORATED THE SECURITIES AND EXCHANGE COMMISSION SUSPENDED HIM FROM THE INDUSTRY FOR THREE MONTHS AND FINED HIM FIFTY THOUSAND DOLLARS FOR FAILING TO SUPERVISE TRADER PAUL MOZER THE CENTRAL PLAYER IN THE SCANDAL MR. MERIWETHER NEITHER ADMITTED NOR DENIED WRONGDOING IN ACCEPTING THE SUSPENSION AT LONG TERM CAPITAL MR. MERIWETHER HAS SET OUT TO RECREATE THE SWINGING ATMOSPHERE OF THE SALOMON TRADING FLOOR WHERE HE WON RENOWN FOR REPORTEDLY BLUFFING THEN CHAIRMAN JOHN GUTFREUND AT A ONE MILLION DOLLAR HAND OF LIAR'S POKER A BETTING GAME PLAYED WITH DOLLAR BILLS MR. MERIWETHER HAS LURED A MIX OF BRAINY ACADEMICS AND FORMER SALOMON COLLEAGUES MANY OF THEM LONG TIME ASSOCIATES OF MR. MULLINS INCLUDING MYRON SCHOLES MR. MULLINS'S FIRST FINANCE PROFESSOR AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND M. I. T. CLASSMATE ERIC ROSENTHAL MR. MULLINS DESCRIBED THE JOB YESTERDAY AS A RETURN TO HIS ROOTS IN THE INTELLECTUAL CHALLENGES OF HIGH TECH FINANCE IT ALSO PAYS BETTER THAN THE ONE HUNDRED TWENTY THREE THOUSAND ONE HUNDRED DOLLARS HE EARNS AT THE FED HE WOULDN'T SAY HOW MUCH MR. CLINTON'S ECONOMIC ADVISERS LEARNED OF MR. MULLINS'S DECISION ONLY MONDAY AND WERE TO MEET LATE YESTERDAY TO TALK ABOUT LOOKING FOR A SUCCESSOR CHIEF WHITE HOUSE ECONOMIST LAURA TYSON SAID SHE SAID SHE DOUBTED THERE WOULD BE A QUICK DECISION THE ADVISERS HAVE RECOMMENDED THAT HE NAME BROOKINGS INSTITUTION ECONOMIST GEORGE PERRY TO REPLACE MR. ANGELL THE WHITE HOUSE HAS ASKED GOVERNMENT LAWYERS WHETHER MR. PERRY MAY HAVE A CONFLICT OF INTEREST BECAUSE HIS WIFE IS A PORTFOLIO MANAGER FOR THREE STOCK MUTUAL FUNDS THE LAWYERS HAVEN'T YET GIVEN A FINAL ANSWER WHITE HOUSE OFFICIALS SAID THIS WEEK MR. PERRY WOULD BE A CONTENDER FOR THE VICE CHAIRMAN'S JOB WHICH IS MR. CLINTON'S TO FILL BUT OTHERS WHO WEREN'T INTERESTED IN BEING A RANK AND FILE FED GOVERNOR MIGHT ALSO BE INTERESTED AMONG THEM TREASURY OFFICIAL ALICIA MUNNELL DEPUTY BUDGET DIRECTOR ALICE RIVLIN AND WHITE HOUSE ECONOMIST ALAN BLINDER THE WHITE HOUSE WILL FACE STRONG PRESSURE TO NAME A WOMAN OR MINORITY GROUP MEMBER TO ONE OF THE TWO VACANCIES A BUSH APPOINTEE WHO WAS WELL LIKED BY CLINTON ADMINISTRATION OFFICIALS MR. MULLINS WAS INSTRUMENTAL IN ORCHESTRATING THE FED'S ATTENTION GRABBING INTEREST RATE CUT AT THE END OF NINETEEN NINETY ONE AND IS REGARDED AS SECOND ONLY TO MR. GREENSPAN IN HIS INFLUENCE AT THE FED HE HAD OFTEN VOWED TO PRESS AS HARD TO RAISE INTEREST RATES AS HE DID TO CUT THEM BUT LEAVES AFTER FOUR YEARS WITHOUT EVER VOTING TO BOOST RATES MR. MULLINS FORTY SEVEN YEARS OLD CAME TO WASHINGTON IN NINETEEN EIGHTY EIGHT AS ASSISTANT TREASURY SECRETARY FOR DOMESTIC FINANCE AFTER FOURTEEN YEARS AT THE HARVARD BUSINESS SCHOOL THE PLAN FOR LONG TERM CAPITAL IS AN AMBITIOUS ONE MR. MERIWETHER INTENDS TO RAISE ABOUT TWO POINT FIVE BILLION DOLLARS TO TRADE COMPLEX AND HIGHLY ILLIQUID FINANCIAL INSTRUMENTS USING COMPUTERS TO IDENTIFY MARKET IMPERFECTIONS THIS WOULD BE BY FAR THE LARGEST START UP OF ITS KIND WITH THE LEVERAGE COMMON TO SUCH INSTRUMENTS TRADERS SAY THE FIRM COULD TAKE POSITIONS AS LARGE AS ONE HUNDRED BILLION DOLLARS FOR EVERY ONE BILLION DOLLARS OF CASH IN HAND BUT THE VENTURE SEEMS TO BE OFF TO A SLOW START PEOPLE AT OTHER SIMILAR TRADING OPERATIONS SAY MR. MERIWETHER HIRED MERRILL LYNCH AND COMPANY'S INSTITUTIONAL SALES FORCE TO SPEED THE MONEY RAISING AND SET THE MINIMUM INVESTMENT AT TEN MILLION DOLLARS BUT INVESTORS PROVED FAR LESS EAGER THAN MR. MERIWETHER HAD THOUGHT PEOPLE FAMILIAR WITH THE FUND RAISING SAY THE EFFORT HAS STALLED OUT SHORT OF ONE BILLION DOLLARS PREVENTING THE FUND FROM ACCEPTING ITS FIRST ROUND OF INVESTMENTS A MILESTONE THAT WAS TO OCCUR ON JANUARY FOURTH AND FROM STARTING TO TRADE A SPOKESMAN FOR THE FIRM SAYS THAT THE FUND ANTICIPATES CLOSING ON SOME INVESTORS' MONEY LATER THIS MONTH WHICH WOULD ALLOW THE FIRM TO START TRADING THEN THE FIRM'S PRIVATE PLACEMENT MEMORANDUM SUGGESTS SEVERAL REASONS WHY INVESTORS MAY HAVE BALKED TO BEGIN WITH INVESTING TEN MILLION DOLLARS AT ONE SHOT IS STIFF FOR MOST INVESTORS MORE DAMAGING MAY HAVE BEEN THE DISCLOSURE THAT THE FIRM'S PRINCIPALS PLAN TO CONTRIBUTE ONE HUNDRED MILLION DOLLARS BUT THEIR FEES ARE SO GENEROUS THAT THEY GET THEIR MONEY BACK NO MATTER HOW WELL THEIR INVESTORS DO LONG TERM CAPITAL COLLECTS TWO PERCENT ON THE MONEY THEY RAISE ANNUALLY ON TOP OF A TWENTY FIVE PERCENT SHARE OF EACH LIMITED PARTNER'S PROFITS INDEED MR. MERIWETHER'S CREW WOULD RECOUP THEIR INITIAL INVESTMENT WITH A LOUSY PERFORMANCE EVEN IF THE FIRM RAISES NOT ONE CENT MORE THAT'S BECAUSE INVESTORS CAN ONLY WITHDRAW THEIR FUNDS EVERY THIRD YEAR INSTEAD OF EVERY THREE MONTHS AS IS COMMON AMONG SUCH SPECULATIVE FUNDS MR. MULLINS LEFT THE TREASURY BEFORE THE SALOMON SCANDAL HIT AND HADN'T ANYTHING TO DO WITH THE DISCIPLINING OF MR. MERIWETHER HE WAS THE FED'S POINT MAN ON THE SALOMON MATTER AND OTHER FINANCIAL MARKET ISSUES IF I HAD THE SLIGHTEST RESERVATION ABOUT THE INTEGRITY OF MY PARTNERS I WOULD HAVE HAD MANY OTHER OPPORTUNITIES HE SAID YESTERDAY NEITHER MR. MULLINS WHOSE RESIGNATION IS EFFECTIVE FEBRUARY FOURTEENTH NOR MR. ANGELL WILL PARTICIPATE IN THIS WEEK'S MEETING OF THE FED'S POLICY SETTING COMMITTEE MARK A. HELLERSTEIN FORTY TWO YEARS OLD PRESIDENT OF THIS OIL AND NATURAL GAS COMPANY WILL ASSUME THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER IN MAY MR. HELLERSTEIN WILL SUCCEED THOMAS E. CONGDON SIXTY SEVEN WHO WILL REMAIN CHAIRMAN THOMAS R. WINKLER FIFTY ONE YEARS OLD WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO SIX MR. WINKLER IS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS CLINICAL DIAGNOSTIC TESTING SYSTEMS PRODUCER THE FEDERAL COMMUNICATIONS COMMISSION SENDING A MIXED MESSAGE ON ITS POLICY AGAINST LEWD BROADCASTS VOTED TWO TO ONE TO LET INFINITY BROADCASTING CORPORATION BUY A MAJOR LOS ANGELES RADIO STATION AT THE SAME TIME THE COMMISSION PROPOSED FOUR HUNDRED THOUSAND DOLLARS IN NEW FINES ON INFINITY FOR LEWD REMARKS BY QUOTE SHOCK JOCK QUOTE HOWARD STERN INFINITY ALREADY IS CONTESTING ONE POINT THREE MILLION DOLLARS IN F. C. C. FINES FOR EARLIER ALLEGED VIOLATIONS OF THE AGENCY'S INDECENCY RULES COMMISSIONER JAMES QUELLO A FORMER BROADCASTER WAS THE LONE DISSENTER IN THE APPROVAL LATE MONDAY OF THE LICENSE TRANSFER HE ARGUED THAT AN APPROVAL MIGHT BE MISINTERPRETED AS THE F. C. C. ENDORSING INFINITY AND HOWARD STERN ACTIONS MR. QUELLO IN A STATEMENT SAID FIRST AMENDMENT RIGHTS WERE NOT CONFERRED BY OUR FOUNDING FATHERS FOR REPULSIVE INDECENT OR POSSIBLY OBSCENE PURPOSES COMMISSIONERS ANDREW BARRETT AND ERVIN DUGGAN VOTED TO APPROVE THE LICENSE TRANSFER CHAIRMAN REED HUNDT ABSTAINED BECAUSE HIS FORMER LAW FIRM REPRESENTS THE LOS ANGELES STATION KRTH F. M. THE F. C. C. HAD BEEN CONSIDERING WHETHER TO PULL ALL OF INFINITY'S TWENTY TWO RADIO LICENSES BUT BACKED OFF AFTER A FEDERAL APPEALS COURT LATE LAST YEAR STRUCK DOWN KEY PORTIONS OF F. C. C. RULES GOVERNING INDECENT BROADCASTS UNDER THE RULES THE AGENCY DEFINES INDECENT BROADCASTS AS THOSE THAT DESCRIBE IN TERMS PATENTLY OFFENSIVE AS MEASURED BY CONTEMPORARY COMMUNITY STANDARDS FOR THE BROADCAST MEDIUM SEXUAL OR EXCRETORY ACTIVITIES OR ORGANS STEVEN LEHMAN A WASHINGTON LAWYER WHO REPRESENTS INFINITY SAID THE COMPANY IS GRATIFIED THAT THE COMMISSION GRANTED THE APPLICATION NEVERTHELESS HE SAID INFINITY OFFICIALS WOULD HAVE PREFERRED A CONSENSUS VOTE JUST WHAT EFFECT THE VOTE WILL HAVE ON INFINITY'S ABILITY TO BUY MORE STATIONS IS UNCERTAIN THE COMPANY HAS APPLIED TO BUY WPGC A. M. AND WPGC F. M. IN SUBURBAN WASHINGTON COMMISSIONER QUELLO SAID HE OPPOSES TRANSFERRING MORE LICENSES TO INFINITY MR. DUGGAN LEFT THE COMMISSION MONDAY TO BECOME HEAD OF THE PUBLIC BROADCASTING SERVICE AND MR. HUNDT WILL LIKELY WEIGH IN ON THAT LICENSE TRANSFER SEPARATELY INFINITY REPORTED SHARPLY HIGHER FOURTH QUARTER NET INCOME REFLECTING HIGHER ADVERTISING REVENUE AND ADDED REVENUE FROM ACQUISITIONS INFINITY SAID IT HAD NET INCOME OF NINE POINT ONE MILLION DOLLARS OR TWENTY CENTS A SHARE UP FROM TWO POINT FIVE MILLION DOLLARS OR SEVEN CENTS A SHARE IN THE YEAR EARLIER QUARTER REVENUE INCREASED THIRTY SIX PERCENT TO SIXTY NINE POINT EIGHT MILLION DOLLARS FROM FIFTY ONE POINT ONE MILLION DOLLARS INFINITY SAID BROADCAST CASH FLOW A KEY MEASURE FOR ELECTRONIC MEDIA COMPANIES ROSE TO TWENTY NINE MILLION DOLLARS FROM TWENTY POINT THREE MILLION DOLLARS CLARENCE V. MCKEE FIFTY ONE YEARS OLD CHAIRMAN OF MCKEE COMMUNICATIONS WAS ELECTED A DIRECTOR OF THIS LIFE INSURANCE HOLDING COMPANY EXPANDING THE BOARD TO EIGHTEEN SINCLAIR WEEKS JUNIOR SEVENTY YEARS OLD WAS NAMED CHAIRMAN OF THE BOARD OF TRUSTEES OF THIS UTILITY HOLDING COMPANY MR. WEEKS CHAIRMAN OF REED AND BARTON CORPORATION OF TAUNTON MASSACHUSETTS SUCCEEDS ROBERT E. SIEGFRIED SEVENTY TWO WHO HAS REACHED COMMONWEALTH ENERGY'S MANDATORY RETIREMENT AGE FOR TRUSTEES CHARLES R. LEE FIFTY THREE YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF G. T. E. CORPORATION WAS ELECTED A DIRECTOR OF THIS PROVIDER OF HIGH TECHNOLOGY PRODUCTS AND SUPPORT SERVICES TO THE AEROSPACE BUILDING SYSTEMS AND AUTOMOTIVE INDUSTRIES BOMBAY COMPANY SAID SALES FOR THE FOUR WEEK PERIOD ENDED SUNDAY AT STORES OPEN AT LEAST A YEAR INCREASED SEVENTEEN PERCENT FROM LAST YEAR DESPITE SEVERE WEATHER CONDITIONS AND THE CALIFORNIA EARTHQUAKE WHICH FORCED THE CLOSING OF FOUR STORES THERE TOTAL SALES FOR THE SPECIALTY RETAILER WERE TWENTY TWO POINT ONE MILLION DOLLARS A TWENTY SIX PERCENT INCREASE FROM THE SEVENTEEN POINT FIVE MILLION DOLLARS RECORDED FOR THE FOUR WEEK PERIOD ENDED JANUARY TWENTY FOURTH NINETEEN NINETY THREE BOMBAY SAID IT HAS SHIFTED ITS RETAIL CALENDAR REMOVING THE HIGH SALES WEEK FOLLOWING CHRISTMAS FROM ITS JANUARY SALES DIEBOLD INCORPORATED DECLARED A THREE FOR TWO STOCK SPLIT AND BOOSTED ITS QUARTERLY CASH DIVIDEND TEN PERCENT THE SPLIT IS PAYABLE FEBRUARY TWENTY SECOND TO STOCK OF RECORD FEBRUARY TENTH DIEBOLD SAID THAT AFTER THE SPLIT IT WILL HAVE ABOUT THIRTY MILLION COMMON SHARES OUTSTANDING THE CANTON OHIO COMPANY ALSO DECLARED A QUARTERLY DIVIDEND OF TWENTY TWO CENTS A SHARE WHICH REPRESENTS A TEN PERCENT INCREASE IN ITS DIVIDEND ON A POST SPLIT BASIS THE NEW FIRST QUARTER CASH DIVIDEND IS PAYABLE MARCH THIRTY FIRST TO STOCK OF RECORD MARCH TENTH DIEBOLD DEVELOPS MAKES AND SERVICES AUTOMATED SELF SERVICE AND SECURITY SYSTEMS WESTINGHOUSE ELECTRIC CORPORATION SAID IT REALIGNED THE MARKETING ORGANIZATION AND CREATED TWO NEW BUSINESSES WITHIN ITS ENERGY SYSTEM BUSINESS UNIT IN AN EFFORT TO INCREASE ITS NUCLEAR POWER PLANT BUSINESS THE COMPANY SAID THE CHANGE WILL HELP IT PURSUE NUCLEAR PLANT PROJECTS ABROAD WHERE IT EXPECTS QUOTE SIGNIFICANT QUOTE OPPORTUNITIES OVER THE NEXT SEVERAL YEARS JOHN T. KOHLER FORTY SEVEN YEAR OLD SENIOR VICE PRESIDENT AND A MEMBER OF THE OFFICE OF THE CHAIRMAN WAS NAMED PRESIDENT AND TO THE NEW POST OF CHIEF OPERATING OFFICER OF THIS COMPUTER SYSTEMS AND SERVICES CONCERN THE POST OF PRESIDENT HAD BEEN VACANT SINCE JUNE NINETEEN NINETY THREE TEXAS' ALTERNATIVE FUELS PROGRAM ALREADY TROUBLED BY DELAYS HAS HIT AN EMBARRASSING FIFTY MILLION DOLLARS SNAG AND TO FIX IT THE STATE PLANS TO SUE ITSELF IT ALL STARTED LAST YEAR WHEN THE LEGISLATURE TO SPEED CONVERSION OF GOVERNMENT VEHICLE FLEETS TO ENVIRONMENTALLY FRIENDLY FUELS CREATED THE ALTERNATIVE FUELS COUNCIL THE LEGISLATURE EMPOWERED THE COUNCIL TO LEND FIFTY MILLION DOLLARS IN STATE BOND MONEY TO GOVERNMENT BODIES CONVERTING VEHICLES BUT OOPS THE LEGISLATION IS MISSING A COUPLE OF SENTENCES THE ONES THAT SHOULD HAVE SAID GOVERNMENT ENTITIES THAT BORROW THE MONEY MUST PAY IT BACK TO THE STATE TREASURY LACKING THOSE THE ATTORNEY GENERAL'S OFFICE WHICH MUST CLEAR ALL STATE BOND ISSUES SAYS IT WON'T APPROVE ANY FUELS COUNCIL BONDS QUOTE THE STATUTE DOES NOT PROVIDE FOR A SOURCE OF REPAYMENT QUOTE SAYS JAMES A. THOMASSEN CHIEF OF THE ATTORNEY GENERAL'S PUBLIC FINANCE DIVISION BECAUSE THE LEGISLATURE WON'T MEET THIS YEAR IT CAN'T FIX THE GLITCH UNTIL AT LEAST JANUARY FOUR MONTHS AFTER TRANSIT AUTHORITIES AND STATE AGENCIES ARE SUPPOSED TO HAVE CONVERTED THIRTY PERCENT OF THEIR FLEETS TO CLEANER BURNING FUELS SO ARGUING THAT THE ATTORNEY GENERAL'S OFFICE IS NITPICKING THE ALTERNATIVE FUELS COUNCIL AND THE TEXAS PUBLIC FINANCE AUTHORITY PLAN TO CHALLENGE ITS OPINION IN COURT THEY PLAN TO FILE A LAWSUIT IN STATE DISTRICT COURT IN AUSTIN IT ISN'T YET CLEAR WHETHER THE SUIT WILL NAME THE ATTORNEY GENERAL OR THE STATE OF TEXAS THE FINANCE AUTHORITY HAS AUTHORIZED SPENDING UP TO TWENTY FIVE THOUSAND DOLLARS ON THE LEGAL ACTION TO BE ADDED TO THE UNDERWRITING COST OF THE BONDS SOME SAY THE LAWSUIT SHOULDN'T BE NECESSARY I THINK IT'S RIDICULOUS FOR THE ATTORNEY GENERAL TO MAKE US GO THROUGH THIS WHEN IT WAS OBVIOUS THAT THE INTENT OF THE LEGISLATION WAS TO SET UP THE COUNCIL AND FOR US TO LOAN OUT THE MONEY SAYS RAILROAD COMMISSIONER BARRY WILLIAMSON A MEMBER OF THE FUELS COUNCIL THIS IS REALLY WHAT GIVES GOVERNMENT A BAD NAME MR. THOMASSEN REPLIES WE HAVE TO DO A LEGAL ANALYSIS AND PERCEIVED INTENTIONS ARE NOT SUFFICIENT THE FINANCIAL ACCOUNTING STANDARDS BOARD YIELDING TO PRESSURE FROM BANKS PROPOSED DROPPING A REQUIREMENT THAT WOULD HAVE REDUCED BANKS' PROFITS RELATED TO TROUBLED LOANS THE REQUIREMENT BY THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS WOULD HAVE PROHIBITED A BANK IN CERTAIN INSTANCES FROM TAKING INTO PROFIT THE INTEREST FROM TROUBLED LOANS BUT BANKS COMPLAINED THAT THE REQUIREMENT WAS CONFUSING AND WOULD HAVE REQUIRED THEM TO MAKE COSTLY CHANGES IN THEIR COMPUTER LOAN INTEREST PROGRAMS OVERSEEN BY BANK REGULATORS IN WASHINGTON D. C. MARTI SWOROBACH A SPOKESWOMAN FOR THE TWO THOUSAND MEMBER SAVINGS AND COMMUNITY BANKERS OF AMERICA SAID THAT BANKERS QUOTE ARE PLEASED WITH F. A. S. B.'S CHANGE OF HEART ON IMPAIRED LOANS QUOTE TIMOTHY LUCAS F. A. S. B.'S RESEARCH DIRECTOR SAID THAT THE PROPOSAL WILL BE ISSUED SHORTLY AND VOTED ON BY THE F. A. S. B. AFTER WEIGHING PUBLIC COMMENT THE BROADER RULE CONTAINING THE REQUIREMENT ISSUED BY THE F. A. S. B. IN MID NINETEEN NINETY THREE IS SCHEDULED TO GO INTO EFFECT FOR BANKS' FINANCIAL REPORTS STARTING IN NINETEEN NINETY FIVE HE ADDED THERE IS ONE IN JUST ABOUT EVERY OFFICE A DESK THAT DOUBLES AS A DRUGSTORE THE CONTENTS MAY VARY A BOTTLE OF IBUPROFEN AND SOME ASPIRIN IN ONE DRAWER A JAR OF VITAMINS AND SOME HEADACHE POWDERS IN ANOTHER BUT THE IDEA IS THE SAME TO FURNISH A QUICK REMEDY FOR THE DAY'S ACHES AND PAINS SAYS BETH GAULT A HOSPITAL ADMINISTRATOR IN ATLANTA QUOTE IT SEEMS LIKE EVERYBODY IN THE OFFICE IS ALWAYS COMING IN TO BORROW MY ADVIL QUOTE THE DANGER OF OVERUSING OVER THE COUNTER REMEDIES HAS ALWAYS BEEN PRESENT IF TWO TABLETS ARE GOOD THE THINKING GOES FOUR MUST BE BETTER WHAT IS CHANGING FOR THE WORSE ACCORDING TO DOCTORS IS PEOPLE'S DESIRE OR WILLINGNESS TO CONSUME THESE DRUGS ON A REGULAR BASIS ALMOST AS A MATTER OF HABIT I SEE PEOPLE OUT FOR DINNER WHO ARE OBVIOUSLY WELL AND HEALTHY AND BETWEEN THEIR MAIN DISH AND DESSERT THEY TAKE FIVE OR SIX VITAMIN PILLS SAYS BERNARD ROSOF A GASTROENTEROLOGIST IN NEW YORK THAT'S OVERUSING AMERICANS AS A SOCIETY ARE OVERMEDICATED SOME EXPERTS SAY BECAUSE OF A CULTURE THAT NO LONGER MAKES ALLOWANCES FOR PAIN ADVERTISEMENTS ON TELEVISION OR IN MAGAZINES THEY SAY HAVE LEFT THE IMPRESSION THAT THERE IS A PILL TO MAKE EVERY PAIN OR PROBLEM GO AWAY SOME OF THESE AILMENTS DOCTORS NOTE WILL GO AWAY BY THEMSELVES IF LEFT ALONE FOR A FEW DAYS BUT SALES OF IBUPROFEN PRODUCTS SUCH AS ADVIL MOTRIN I. B. NUPRIN AND PRIVATE LABEL VERSIONS HAVE MORE THAN TRIPLED SINCE THE PAINKILLER WAS APPROVED FOR OVER THE COUNTER SALES NEARLY A DECADE AGO THE PRESCRIPTION ANTIFUNGAL DRUGS THAT WENT OVER THE COUNTER IN NINETEEN NINETY AND NINETEEN NINETY ONE MONISTAT GYNE LOTRIMIN AND MYCELEX HAVE ALSO SEEN SALES SKYROCKET SALES OF GYNE LOTRIMIN AND A RELATED PRODUCT LOTRIMIN FOR EXAMPLE JUMPED TO ONE HUNDRED FORTY SIX MILLION DOLLARS IN NINETEEN NINETY TWO FROM SIXTY FOUR POINT NINE MILLION DOLLARS BEFORE THE DRUGS WENT OVER THE COUNTER ACCORDING TO DATA COLLECTED BY TWO MONITORING COMPANIES I. M. S. AMERICA LIMITED AND NIELSEN MARKETING RESEARCH AND MORE DRUGS WILL SOON BE HEADING TOWARD OVER THE COUNTER STATUS THE NONPRESCRIPTION DRUG MANUFACTURERS ASSOCIATION SAYS THE FOOD AND DRUG ADMINISTRATION IS EVALUATING SOME TWENTY FIVE DRUG COMPANY APPLICATIONS FOR MEDICINES TO BE SOLD OVER THE COUNTER COMPARED WITH FIFTY ONE APPROVALS IN THE PAST TWENTY YEARS SELF MEDICATION CARRIED TO AN EXTREME CAN HAVE SERIOUS CONSEQUENCES SOME VITAMINS IF TAKEN IN LARGE AMOUNTS CAN CAUSE KIDNEY STONES DOCTOR ROSOF SAYS HEAVY DOSES OF SOME TYPES OF PAINKILLERS CAN RAISE BLOOD PRESSURE OR CAUSE GASTRIC PROBLEMS EVEN WHEN EXCESSIVE USE OF DRUGS ISN'T DIRECTLY HARMFUL THE PRACTICE CAN DELAY DIAGNOSIS OF A MORE SERIOUS AILMENT IT CERTAINLY WOULD BE RIDICULOUS TO GO TO THE DOCTOR FOR EVERY LITTLE THING SAYS REGINALD HARRIS A PHYSICIAN IN SHELBY N. C. BUT ALL OVER THE COUNTER DRUGS ARE DANGEROUS IF OVERUSED AND WE ARE OVERUSING THEM BUT THE DRUGS' BENEFITS CONSUMERS SAY ARE NUMEROUS JANICE STEEGE AN ATLANTA HOUSEWIFE SAYS SHE USED TO GET SEVERE MIGRAINE HEADACHES REGULARLY PRESCRIPTION PAINKILLERS LEFT HER FEELING DROWSY AND AFRAID OF BECOMING ADDICTED SO SHE SWITCHED TO FOUR IBUPROFEN TABLETS AT THE FIRST SIGN OF PAIN I KEEP A PACKET IN MY PURSE A PACKET IN THE CAR SHE SAYS QUOTE AND I DON'T GET HEADACHES ANYMORE QUOTE OTHER CONSUMERS USE NONPRESCRIPTION DRUGS TO SAVE TIME AND MONEY WOMEN WITH CHRONIC YEAST INFECTIONS FOR INSTANCE SAY THEY CAN NOW TREAT THEMSELVES WITHOUT GOING THROUGH THE BOTHER OF AN UNCOMFORTABLE PELVIC EXAM JUST TO FIND OUT WHAT THEY ALREADY KNOW PEOPLE ARE BUSY SAYS SHIRLEY CANTWELL DAVIS A REGISTERED NURSE IN ATLANTA WHOSE HUSBAND TAKES AN ASPIRIN DAILY TO PREVENT A HEART ATTACK WE DON'T WANT TO GO SIT IN A DOCTOR'S OFFICE ALL DAY BUT CONSUMERS MAY NEVERTHELESS FIND THEMSELVES IN THE DOCTOR'S OFFICE EITHER FOR COMPLICATIONS ARISING FROM PROLONGED USE OF OVER THE COUNTER DRUGS THEMSELVES OR FOR FAILING TO RECOGNIZE THE PRESENCE OF A MORE SERIOUS ILLNESS IT'S REALLY UNCOMMON FOR A WOMAN TO HAVE MORE THAN TWO YEAST INFECTIONS IN A YEAR SAYS MICHAEL SPENCE A PHILADELPHIA OBSTETRICIAN AND GYNECOLOGIST YOU'RE OUT THERE AND YOU'RE BUYING THESE CREAMS OVER AND OVER AGAIN AND YOU'RE THINKING I'M GETTING BETTER I JUST HAVE THIS PROBLEM BUT IT COULD BE A SYMPTOM OF SOMETHING ELSE LIKE H. I. V. RECURRENT YEAST INFECTIONS WERE RECENTLY ADDED TO THE LIST OF SYMPTOMS OF AIDS OTHER SERIOUS DISEASES CAN ALSO REMAIN UNDETECTED FOR A PERIOD WITH THE HELP OF NONPRESCRIPTION DRUGS A THIRTY TWO YEAR OLD SOCIAL WORKER IN SANDY SPRINGS GEORGIA RECENTLY DISCOVERED THAT HER PAINFUL MENSTRUAL PERIODS WHICH IBUPROFEN PILLS HAD ALLEVIATED FOR SIX YEARS WERE ACTUALLY A SIGN OF ENDOMETRIOSIS A CONDITION OF THE UTERUS THAT IS NOW PREVENTING HER FROM GETTING PREGNANT QUOTE THE PILLS TOOK CARE OF THE PAIN SO I NEVER BOTHERED GOING TO THE DOCTOR QUOTE SHE SAYS I JUST THOUGHT IT WAS NORMAL BUT MANY CONSUMERS ARE NOT ABOUT TO LET ANY DISCOMFORT GO UNTREATED EVEN FOR A FEW MINUTES PAIGE YOUNG A TWENTY EIGHT YEAR OLD BANKER IN GREENSBORO N. C. RECALLS A MORNING WHEN MENSTRUAL CRAMPS PROMPTED HER TO TAKE SOME IBUPROFEN TABLETS BY THE END OF THE DAY SHE HAD TAKEN EIGHTEEN IN ALL AND WAS SUFFERING ABDOMINAL PAINS A DOCTOR TOLD HER THAT THE IBUPROFEN HAD DAMAGED THE LINING IN HER STOMACH THE EXPERIENCE DIDN'T SCARE HER OFF FAR FROM IT NOW SAYS MS. YOUNG WHEN HER CRAMPS BEGIN SHE TAKES THREE PILLS AND THEN FOLLOWS UP LATER IN THE DAY WITH SIX MORE I DON'T WORRY ABOUT USING TOO MUCH SHE SAYS ADDING THAT THE MANUFACTURER'S DAILY RECOMMENDED DOSAGE OF SIX TABLETS IS PROBABLY OVERCAUTIOUS IT'S ONLY NINE THIS IS MONICA GREENWOOD'S FIRST VISIT TO GEORGIA'S LONE SKI RESORT KNOWN AS SKY VALLEY BUT SHE ALREADY HAS LEARNED A BASIC LESSON ABOUT SKIING THE DEEP SOUTH QUOTE SKIS DON'T SLIDE ON MUD QUOTE SAYS MS. GREENWOOD CASTING A RUEFUL GLANCE UP THE QUOTE MOUNTAIN QUOTE WHICH HAS NO SNOW ON IT EXCEPT FOR TWO NARROW SWATHS CREATED BY SKY VALLEY'S SNOW MAKING MACHINES UNFORTUNATELY MS. GREENWOOD HAD TO LEARN THAT LESSON THE HARD WAY THE SECRETARY FROM ATLANTA IS COVERED WITH MUD FROM GLOVE TO BOOT HAVING VEERED OFF THE SWATH AND INTO THE DIRT SO AS TO AVOID A COUPLE OF FALLEN SKIERS MUD IS JUST ONE OF MANY HAZARDS AT THE DOZEN OR SO SKI AREAS IN THE CUSTOMARILY SNOW STARVED STATES OF GEORGIA TENNESSEE NORTH CAROLINA AND ALABAMA THANKS TO WARM CLIMATES AND LOW ALTITUDES SKIERS HERE FREQUENTLY CONTEND WITH SLUSHY ICY EVEN GRASSY CONDITIONS REMARKABLY NONE OF THAT SEEMS TO DAMP ENTHUSIASM FOR THE SPORT EVERY WINTER WEEKEND THOUSANDS OF SOUTHERNERS PUT UP WITH LONG LIFT LINES AND SKI RUNS AS SHORT AS A FEW HUNDRED FEET JUST TO EXPERIENCE THE THRILL OF DOWNHILL CLOSE TO HOME HEY SKIING IS SKIING SAYS LARRY CLARK A SOUTHERN SLOPE DEVOTEE FROM KENNESAW GEORGIA IF I CAN HAVE TIME ON SNOW WHETHER IT BE ON ICE SLUSH OR CRUD I'M HAPPY MR. CLARK'S ATTITUDE ISN'T UNCOMMON SOUTHERNERS WILL SKI ON ANYTHING SAYS GARY JONES WHO RUNS ALABAMA'S CLOUDMONT SKI RESORT SNOW ON CLOUDMONT'S TWO TINY LIGHTED SLOPES IS OFTEN SO THIN THAT SKIERS SLIDE OVER ROCKS WHICH ARE PRETTY HARD ON SKIS AT NIGHT YOU CAN SEE SPARKS FLY SAYS MR. JONES WHO REPLACED MOST OF HIS RENTAL EQUIPMENT THIS YEAR THE VERTICAL DROP AT CLOUDMONT IS ABOUT ONE HUNDRED FIFTY FEET THREE THOUSAND FEET IS MORE TYPICAL IN A COLORADO RESORT WHERE THERE ARE REAL MOUNTAINS AS WELL AS REAL SNOW EVEN THE HIGHEST SOUTHEASTERN PEAK NORTH CAROLINA'S BEECH MOUNTAIN AT FIVE THOUSAND FIVE HUNDRED FIVE FEET IS MUCH LOWER THAN THE BASE OF MOST ROCKY MOUNTAIN SKI AREAS BEECH MOUNTAIN GETS FIFTY SEVEN INCHES OF NATURAL SNOW EACH YEAR ON AVERAGE CLOUDMONT GETS ABOUT SIX IN THE SOUTH SIXTY DEGREE WINTER DAYS AREN'T UNUSUAL SO IT'S A CONSTANT BATTLE TO KEEP SNOW ON THE SLOPES AND MOST SNOWMAKING EQUIPMENT WHICH WORKS BY SPRAYING WATER HIGH INTO THE AIR ISN'T EFFECTIVE UNLESS THE AIR TEMPERATURE FALLS TO TWENTY EIGHT DEGREES WEATHER PERMITTED JUST A MONTH OF SKIING LAST YEAR AT CLOUDMONT NORTH CAROLINA THE SOUTH'S BIGGEST SKI STATE DRAWS ABOUT FIVE HUNDRED THOUSAND SKIERS A YEAR ACCORDING TO RICK KIRKPATRICK WHO STUDIED THE INDUSTRY AS AN ECONOMICS PROFESSOR AT APPALACHIAN STATE UNIVERSITY IN BOONE N. C. SOUTHERN SKI TRIPS CAN BE IMPOSSIBLE TO PLAN MARK MITCHELL A HUNTSVILLE ALABAMA SCHOOLTEACHER RECALLS THE GREAT EXPECTATIONS HE AND ABOUT TWENTY FRIENDS HAD WHEN THEY SCHEDULED A NEW YEAR'S WEEKEND RETREAT AT OBER GATLINBURG SKI RESORT IN TENNESSEE WE WERE READY HE SAYS QUOTE WE ALL WENT OUT AND BOUGHT THE GLOVES AND THE LITTLE SUITS AND THE THERMALS AND THEN THERE WAS NO SNOW QUOTE ALL WASN'T LOST HOWEVER MR. MITCHELL AND HIS FRIENDS SPENT THE BALMY WEEKEND RIDING GATLINBURG'S ALPINE SLIDE A SLED ON WHEELS THAT SNAKES DOWN AN ONE THOUSAND EIGHT HUNDRED FOOT CONCRETE GULLY IT WAS PRETTY MUCH FUN HE SAYS BUT YOU DID SKIN YOUR KNUCKLES IF YOU WEREN'T CAREFUL NOT ALL SOUTHERN SKIING IS SO BLEAK THE SKI AREA AT NORTH CAROLINA'S SUGAR MOUNTAIN FOR INSTANCE HAS A ONE THOUSAND TWO HUNDRED FOOT VERTICAL DROP WHICH IS RESPECTABLE FOR THE EAST THE MORE SCRUPULOUS RESORT MANAGERS TRY TO KEEP LIFT LINES UNDER TWENTY MINUTES AND AFTER SEVERAL WARM WINTERS A LONG RUNNING COLD SPELL THIS YEAR HAS KEPT MANY SOUTHERN SLOPES MUCH WHITER ALBEIT WITH MAN MADE SNOW THAN USUAL STILL NO ONE IS GOING TO CONFUSE THE APPALACHIANS WITH THE ALPS AT SKY VALLEY WHERE A WEEKEND LIFT TICKET GOES FOR EIGHTEEN DOLLARS THERE ARE NO JAGGED SNOW CAPPED PEAKS JUST ROUNDED BROWN HILLSIDES EVEN IN A GOOD YEAR THE SNOW IS SO SPOTTY THAT SKIERS HAVE TO DUCKWALK ON CARPET TO REACH THE CHAIRLIFT THERE'S NO NEED AS THERE IS IN ASPEN COLORADO FOR TRAIL MAPS WITH BOLD SLOPE NAMES SUCH AS PERRY'S PROWL AND SPAR GULCH WHEN SKIERS REACH THE TOP OF SKY VALLEY'S LIFT THEY HAVE TWO CHOICES EASIEST AND MOST DIFFICULT ON A RECENT SATURDAY HERE DIFFICULT WAS ALL THEY HAD A DRIVING GEORGIA RAIN FOLLOWED BY A COLD FRONT HAD TRANSFORMED THE TWO SLOPES INTO RIVERS OF ICE THIS IS ABSOLUTELY DANGEROUS SAID J. B. CORAM AN ATLANTA COMMODITIES BROKER PEERING UP AT A SLOPE LITTERED WITH FALLEN SKIERS I'VE SEEN ENOUGH PEOPLE ON THEIR BUTTS TO KNOW IT'S TIME TO TAKE MY BUTT HOME FOR RESORTS ON THE SOUTHERN SKI CIRCUIT ALTERNATE ACTIVITIES CAN MAKE THE DIFFERENCE BETWEEN A GOING CONCERN AND GOING UNDER CLOUDMONT SUPPLEMENTS ITS INCOME BY DOUBLING AS A DUDE RANCH SKY VALLEY WHOSE SLOPES SIT JUST BEYOND THE TENTH TEE OF A GOLF COURSE NOW OFFERS SKI AND TEE SPECIALS AND A SWISS STYLE LODGE COMPLETE WITH APRES SKI OR APRES TEE AMENITIES LIKE FIRESIDE DINING GENE HEAD OWNER OF SKI SCALY RESORT NEVER HARBORED ANY DELUSIONS OF GRANDEUR HIS SMALL OPERATION RUN OUT OF A ROADSIDE BUILDING IN THE SOUTHWEST CORNER OF NORTH CAROLINA TRIES TO COMPENSATE FOR ITS SIZE A LEISURELY SKIER CAN REACH THE BOTTOM OF SCALY'S SLOPE IN FORTY SECONDS WITH A HOMEY APPROACH TO CUSTOMER SERVICE MR. HEAD WHO CARVED THE SCALY SKI SLOPE OUT OF HIS CABBAGE FARM THIRTEEN YEARS AGO TRIES TO GET TO KNOW EVERY SKIER BY NAME FROM A SMALL CLUTTERED OFFICE WITH A PLATE GLASS WINDOW AND A MICROPHONE HOOKED TO THE PUBLIC ADDRESS SYSTEM MR. HEAD WHO WEARS A COWBOY HAT PROVIDES A RUNNING COMMENTARY ON THE ACTION ONE MOMENT HE COMPLIMENTS A SKIER'S RED JACKET THE NEXT HE ALERTS HIS EMPLOYEES TO A SKIER CAREENING TOWARD A FENCE FOR HIS EFFORTS MR. HEAD SAYS HE TAKES IN ABOUT THREE HUNDRED FIFTY THOUSAND DOLLARS IN A GOOD YEAR HE HAS ALSO EARNED A LOYAL FOLLOWING QUOTE THIS IS PERFECT QUOTE SAYS SHAUN KELLEY A TWELVE YEAR OLD SKIER FROM DAHLONEGA GEORGIA HE STOPS FOR A MOMENT AT THE PEAK OF SCALY'S SLOPE TO TAKE IN THE SCENERY WHICH INCLUDES A B. P. GAS STATION ACROSS THE HIGHWAY AND A RED BARN RIGHT NEXT TO THE BEGINNERS' SLOPE THE VIEW IS BREATHTAKING HE SAYS MOUNT MITCHELL IN NORTH CAROLINA IS THE HIGHEST PEAK IN THE SOUTHEAST IN A PAGE ONE ARTICLE JANUARY TWENTY FIFTH ABOUT SKIING IN THE REGION BEECH MOUNTAIN WAS INCORRECTLY IDENTIFIED AS THE TALLEST POINT RATHER BEECH MOUNTAIN IS THE HIGHEST SKI AREA IN THE SOUTHEAST THE NASDAQ STOCK MARKET'S COMPOSITE INDEX TOPPED THE EIGHT HUNDRED LEVEL FOR THE FIRST TIME WHILE ANOTHER SMALL COMPANY INDEX ALSO SET A RECORD THE NASDAQ INDEX JUMPED THREE POINT NINE FOUR POINTS OR ZERO POINT FOUR NINE PERCENT TO END AT EIGHT HUNDRED POINT FOUR SEVEN ADVANCING ISSUES BEAT NASDAQ DECLINERS ONE THOUSAND EIGHT HUNDRED TWENTY NINE TO ONE THOUSAND THREE HUNDRED TWENTY NASDAQ NATIONAL MARKET VOLUME FELL TO TWO HUNDRED SEVENTY SEVEN MILLION SEVEN HUNDRED THIRTY FOUR THOUSAND EIGHT HUNDRED SHARES FROM TWO HUNDRED NINETY NINE MILLION ONE HUNDRED FIFTY SEVEN THOUSAND EIGHT HUNDRED ON FRIDAY TOTAL NASDAQ TURNOVER WAS AT THREE HUNDRED TWENTY EIGHT MILLION NINE HUNDRED THIRTEEN THOUSAND NINE HUNDRED SHARES DOWN FROM THREE HUNDRED FORTY SEVEN MILLION FOUR HUNDRED EIGHTY EIGHT THOUSAND SHARES FRIDAY ACTION WAS SLOW INITIALLY BUT PICKED UP AS THE SESSION WORE ON THE RUSSELL TWO THOUSAND INDEX ALSO HIT RECORD GROUND CLIMBING ONE POINT FOUR NINE POINTS OR ZERO POINT FIVE SIX PERCENT TO TWO HUNDRED SIXTY SIX POINT FIVE TWO IT TRACKS THE PERFORMANCE OF SMALL CAPITALIZATION STOCKS TRADED ON NASDAQ AND THE MAJOR EXCHANGES RALLYING INTEREST RATE SENSITIVE ISSUES AND TRANSPORTATION STOCKS WERE RESPONSIBLE FOR MOST OF THE SMALL CAP GAINS EARNINGS NEWS CONTINUED TO BE A DRIVING FORCE AMONG FINANCIAL STOCKS NATIONAL CITY BANCORP MINNEAPOLIS ROSE ONE AND ONE QUARTER TO FIFTEEN AND ONE QUARTER BAY VIEW CAPITAL CORPORATION SAN MATEO CALIFORNIA ADDED SEVEN EIGHTHS TO TWENTY TWO AND ANCHOR BANCORP WISCONSIN MADISON WISCONSIN CLIMBED ONE HALF TO TWENTY FOUR AND ONE QUARTER IN THE TRANSPORTATION SECTOR HEARTLAND EXPRESS A CORALVILLE IOWA MOTOR CARRIER GAINED ONE AND ONE QUARTER TO THIRTY AND THREE QUARTERS ARKANSAS BEST A FORT SMITH ARKANSAS PROVIDER OF MOTOR CARRIER OPERATIONS IMPROVED THREE QUARTERS TO FOURTEEN AND THREE QUARTERS AND ARNOLD INDUSTRIES A LEBANON PENNSYLVANIA MOTOR VEHICLE TRANSPORTER INCHED UP ONE EIGHTH TO TWENTY AND THREE EIGHTHS B. M. C. WEST BOISE IDAHO RALLIED FOUR AND SEVEN EIGHTHS OR SEVENTEEN PERCENT TO THIRTY THREE AND SEVEN EIGHTHS FOLLOWING IMPROVED FOURTH QUARTER EARNINGS LILLY INDUSTRIES OF INDIANAPOLIS ROSE TWO AND THREE QUARTERS OR THIRTEEN PERCENT TO TWENTY FOUR AFTER IT SAID FOURTH QUARTER EARNINGS IMPROVED TO THIRTY THREE CENTS A SHARE FROM TWENTY SIX CENTS A YEAR EARLIER LILLY ALSO RAISED ITS DIVIDEND TO TEN CENTS A SHARE FROM NINE CENTS HEART TECHNOLOGY REDMOND WASHINGTON ADDED ONE AND ONE QUARTER TO TWENTY THREE THE COMPANY WHICH DEVELOPS DEVICES TO TREAT ARTHEROSCLEROSIS SAID IT HAD A FOURTH QUARTER PROFIT COMPARED WITH A YEAR EARLIER LOSS RADIATION SYSTEMS INCORPORATED A STERLING VIRGINIA ANTENNA PRODUCTS CONCERN SURGED FOUR AND ONE EIGHTH OR THIRTY ONE PERCENT TO SEVENTEEN AND FIVE EIGHTHS BIG BOARD TRADED COMSAT CORPORATION SAID IT HAS ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE RADIATION SYSTEMS JMC GROUP INCORPORATED A SAN DIEGO MARKETER OF INSURANCE PRODUCTS AND MUTUAL FUNDS SLID ONE AND FIVE EIGHTHS OR EIGHTEEN PERCENT TO SEVEN AND ONE QUARTER THE COMPANY SAID FOURTH QUARTER NET INCOME FROM CONTINUING OPERATIONS IS EXPECTED TO EXCEED TWO HUNDRED SEVENTY FIVE THOUSAND DOLLARS OR FOUR CENTS A SHARE COMPARED WITH YEAR EARLIER EARNINGS FROM CONTINUING OPERATIONS OF ONE MILLION DOLLARS OR FOURTEEN CENTS SHARES OF CLOSED END FUNDS INVESTING IN JAPAN MOVED HIGHER FOLLOWING A STRONG DAY ON THE TOKYO STOCK MARKET JAPAN O. T. C. EQUITY FUND CLIMBED TWO TO FOURTEEN AND ONE HALF JAPAN EQUITY FUND ADDED ONE AND FIVE EIGHTHS TO SEVENTEEN AND SEVEN EIGHTHS AND SCUDDER NEW ASIA FUND ROSE ONE AND ONE QUARTER TO TWENTY SEVEN AND THREE EIGHTHS ALL THREE ARE TRADED ON THE NEW YORK STOCK EXCHANGE V. M. X. BOUNCED THIRTEEN SIXTEENTHS HIGHER TO FIVE ON NEWS IT SIGNED A DEFINITIVE AGREEMENT TO MERGE WITH OCTEL COMMUNICATIONS IN A STOCK SWAP V. M. X. BASED IN SAN JOSE CALIFORNIA DESIGNS COMPUTER SYSTEMS AN INITIAL LONG TERM QUOTE BUY QUOTE RATING FROM SOUNDVIEW FINANCIAL GROUP INCORPORATED LIFTED GENERAL DATACOMM INDUSTRIES MIDDLEBURY CONNECTICUT TWO AND ONE QUARTER TO FOURTEEN ON THE BIG BOARD BUT TRIARC COMPANIES FELL THREE AND THREE EIGHTHS TO TWENTY AND SEVEN EIGHTHS AFTER OPPENHEIMER AND COMPANY ANALYST MICHAEL BUNYANER REDUCED HIS NINETEEN NINETY FOUR AND NINETEEN NINETY FIVE PER SHARE EARNINGS ESTIMATES HE SAID HIS ORIGINAL FORECAST WAS MADE WITH LITTLE INFORMATION AVAILABLE AS THE WEST PALM BEACH FLORIDA COMPANY WAS SELLING OFF ASSETS AND CLEANING UP ITS BALANCE SHEET MR. BUNYANER ADDED THAT HE THOUGHT THE MARKET OVERREACTED TO HIS ESTIMATE CUTS AND HE EXPECTS EARNINGS TO RISE TWENTY PERCENT OR MORE A YEAR IN THE NEXT FOUR YEARS CLAUDIA E. MOTT DIRECTOR OF SMALL CAP RESEARCH AT PRUDENTIAL SECURITIES INCORPORATED SAID SHE IS A LITTLE CONCERNED ABOUT THE LOFTY LEVELS OF FINANCIAL RELATED STOCKS I THINK BY AND LARGE WE'VE SEEN GOOD EARNINGS REPORTS TO CARRY THIS MARKET MS. MOTT SAID BUT A FAIR NUMBER OF FINANCIAL EARNINGS HAVE BEEN DISAPPOINTING IF INVESTORS ARE GOING TO CONTINUE TO PLAY THE MOMENTUM SIDE FINANCIALS WILL FALL OUT OF FAVOR SHE SAID THE GROUP MAY CONTINUE TO PERFORM WELL BECAUSE RATES ARE STILL RELATIVELY LOW WILLIAM SULYA HEAD OF OVER THE COUNTER TRADING AT A. G. EDWARDS AND SONS SAID TRADING VOLUME TENDS TO BE RELATIVELY THIN ON SMALLER TRANSPORT STOCKS WHICH CAN PUSH THEIR STOCK PRICES AROUND EASILY ON LIMITED BUYING OR SELLING OVER THE PAST SEVERAL YEARS YOU HAVE PERSISTENTLY PORTRAYED ME AS AN ADVOCATE OF A TOUGH TRADE POLICY TOWARD JAPAN A COUNTRY THAT I AM SAID TO BELIEVE IS QUOTE DIFFERENT QUOTE UNFAIR AND UNCHANGING THE MOST RECENT EXAMPLE IS YOUR DECEMBER TWENTY NINTH ARTICLE JAPAN ECONOMICALLY AND POLITICALLY AILING IS SINKING INTO GLOOM FOR THE RECORD I DO NOT BELIEVE NOR HAVE I EVER SAID THAT JAPAN IS UNFAIR I DO BELIEVE THAT JAPAN'S ECONOMIC PHILOSOPHY DIFFERS FUNDAMENTALLY FROM THAT OF THE U. S. AND THAT ITS ECONOMY IS STRUCTURED AND RUN ON A SIGNIFICANTLY DIFFERENT BASIS THE WHOLE POINT OF EXPLAINING THESE DIFFERENCES IS TO DEMONSTRATE THAT U. S. PROBLEMS WITH JAPAN DO NOT ARISE FROM UNFAIRNESS ON JAPAN'S PART BUT RATHER FROM MISUNDERSTANDING OF WHAT DRIVES JAPAN ON THE PART OF THE U. S. I HAVE NEVER SAID THAT JAPAN WILL NOT OR CANNOT CHANGE INDEED I HAVE SAID THAT JAPAN HAS CHANGED MORE OVER THE PAST FORTY YEARS THAN PERHAPS ANY OTHER COUNTRY THE PROBLEM HERE IS THAT WHEN MOST COMMENTATORS TALK ABOUT A CHANGING JAPAN THEY IMPLICITLY ASSUME THAT JAPAN WILL CHANGE TO BECOME MORE LIKE THE U. S. THAT MAY INDEED HAPPEN BUT I BELIEVE IT IS EQUALLY POSSIBLE FOR JAPAN TO CHANGE WITHOUT BECOMING MORE LIKE THE U. S. I DO NOT ADVOCATE A TOUGH TRADE POLICY TOWARD JAPAN TOUGH IMPLIES THREATS AND RETALIATION I AM ON RECORD IN PUBLIC TESTIMONY AS BEING AGAINST SUCH THREATS AND RETALIATION AND I HAVE TESTIFIED AGAINST THE USE OF UNFAIR TRADE LAWS SUCH AS SUPER THREE HUNDRED ONE I DO ADVOCATE AN INTELLIGENT TRADE POLICY TOWARD JAPAN THAT RECOGNIZES THAT NEGOTIATING WITH JAPAN OVER PHILOSOPHICAL CONCEPTS SUCH AS OPENNESS AND FAIRNESS MAY BE UNPRODUCTIVE BECAUSE OF VASTLY DIFFERENT UNDERSTANDINGS OF THOSE CONCEPTS ON BOTH SIDES NEGOTIATION OF CONCRETE AND MEASURABLE OBJECTIVES EASILY UNDERSTOOD BY BOTH COUNTRIES SHOULD OBVIATE THE NEED FOR TOUGHNESS IT WAS AN INFLUENTIAL GROUP OF CASINO INDUSTRY EXECUTIVES THAT STEPHEN WYNN THE CHAIRMAN OF MIRAGE RESORTS INCORPORATED ASSEMBLED FOR A BREAKFAST MEETING AT MIRAGE'S EXCLUSIVE SHADOW CREEK GOLF CLUB IN NORTH LAS VEGAS THE EXECUTIVES HAD BEEN SUMMONED TO THE MEETING THIS PAST FALL SEVERAL SAY TO DISCUSS QUOTE IMPORTANT INDUSTRY ISSUES QUOTE BUT MR. WYNN A LONG TIME REGISTERED DEMOCRAT AND ERSTWHILE BILL CLINTON SUPPORTER HAD ANOTHER AGENDA IN MIND FLANKED BY REPUBLICAN NATIONAL COMMITTEE CHAIRMAN HALEY BARBOUR AND JOHN MORAN CHAIRMAN OF THE PARTY'S FINANCE COMMITTEE MR. WYNN EXPLAINED THAT HE HAD BECOME DISENCHANTED WITH THE CLINTON ADMINISTRATION'S ECONOMIC POLICIES AND WOULD GIVE A QUARTER OF A MILLION DOLLARS TO THE G. O. P. HE WANTED THE OTHER EXECUTIVES TO ANTE UP TOO WILLIAM BENNETT THE CHIEF EXECUTIVE OF CIRCUS CIRCUS ENTERPRISES INCORPORATED WAS FUMING I SAID I'LL GIVE A QUARTER TOO IF I CAN GET OUT OF HERE RIGHT NOW MR. BENNETT RECALLS LATER HE WROTE A CHECK FOR TWENTY FIVE CENTS AND SENT IT OVER TO MR. WYNN'S OFFICE MR. BENNETT SAYS IT CAME BACK STAMPED INSUFFICIENT FUNDS AS GAMBLING FLOURISHES ACROSS THE COUNTRY CASINO INTERESTS ARE INCREASINGLY SEEKING TO DEAL THEMSELVES INTO THE NATIONAL POLITICAL SCENE AT PRESENT RIVERBOAT CASINOS LAS VEGAS STYLE CASINOS INDIAN GAMBLING OR VIDEO GAMING IS EITHER OPERATING OR IS AUTHORIZED IN TWENTY FIVE STATES ACCORDING TO THE NATIONAL CONFERENCE OF STATE LEGISLATURES AMERICANS SPEND THIRTY BILLION DOLLARS A YEAR ON LEGAL GAMBLING AND WITH ISSUES RANGING FROM COMPETITION BY INDIAN TRIBES TO POTENTIALLY TIGHTER FEDERAL CURRENCY REPORTING RESTRICTIONS MANY INDUSTRY INSIDERS AGREE THAT THEY NEED A POLITICAL PRESENCE BUT NO ONE CAN QUITE DECIDE JUST HOW THAT SHOULD BE DONE OR WHO SHOULD LEAD THE WAY CASINO EXECUTIVES AT THE SHADOW CREEK MEETING DISCUSSED FORMING A WASHINGTON TRADE ASSOCIATION JUST AS THEIR FRIENDS IN THE MOVIE BUSINESS HAVE THE NEVADA RESORT ASSOCIATION HAS EMPLOYED SOME HEAVYWEIGHT LOBBYING MUSCLE OVER THE YEARS INCLUDING THE DUBERSTEIN GROUP AND AKIN GUMP STRAUSS HAUER AND FELD BUT IT DOESN'T REPRESENT ALL GAMBLING COMPANIES OR EVEN ALL OF THE MAJOR LAS VEGAS RESORTS AMONG OTHER PLAYERS THE LOBBYING FIRM BLACK MANAFORT STONE AND KELLY WHICH FOR SEVERAL YEARS HAS REPRESENTED THE TRUMP ORGANIZATION AND THE CASINO ASSOCIATION OF NEW JERSEY JUST LAST SPRING TOOK ON M. G. M. GRAND INCORPORATED AS A CLIENT MEANWHILE INDIAN TRIBES WITH AN INTEREST IN GAMBLING LEGISLATION ARE ALSO USING WELL CONNECTED WASHINGTON LOBBYISTS THE SEMINOLE TRIBE OF FLORIDA RECENTLY HIRED THE JEFFERSON GROUP THE MORONGO BAND OF MISSION INDIANS OF CALIFORNIA HAS RETAINED WINSTON AND STRAWN AND THE MASHANTUCKET PEQUOT TRIBE OF CONNECTICUT HAS SIGNED ON PATTON BOGGS AND BLOW BEYOND REPRESENTATION OF COURSE THERE'S MONEY THROUGH THE NINETEEN NINETY ONE TO NINETY TWO ELECTION CYCLE AND THE FIRST SIX MONTHS OF NINETEEN NINETY THREE POLITICAL ACTION COMMITTEES FROM THE GAMBLING INDUSTRY GAVE ONE HUNDRED NINETY FOUR THOUSAND ONE HUNDRED EIGHT DOLLARS TO DEMOCRATIC CANDIDATES AND SIXTY THREE THOUSAND EIGHT HUNDRED THIRTY SEVEN DOLLARS TO REPUBLICANS ACCORDING TO AN ANALYSIS BY THE NONPARTISAN CENTER FOR RESPONSIVE POLITICS BEYOND THAT THE DEMOCRATS RECEIVED ONE HUNDRED SIXTY FIVE THOUSAND FIVE HUNDRED FIFTY FOUR DOLLARS IN UNRESTRICTED SOFT MONEY CONTRIBUTIONS FROM THE INDUSTRY DURING THE NINETEEN NINETY ONE TO NINETY TWO PERIOD WHILE REPUBLICANS TOOK IN ONE HUNDRED SIXTY THOUSAND FIVE HUNDRED FORTY THREE DOLLARS CIRCUS CIRCUS ALONE GAVE FIFTY FOUR THOUSAND ONE HUNDRED FORTY NINE DOLLARS TO THE DEMOCRATS AND THIRTY FIVE THOUSAND DOLLARS TO THE REPUBLICANS EVEN THE MASHANTUCKET PEQUOT TRIBE HAS GOTTEN INTO THE ACT SENDING ONE HUNDRED THOUSAND DOLLARS TO THE DEMOCRATS IN NINETEEN NINETY TWO BUT THOSE DOLLARS PALE IN COMPARISON WITH THE SUMS NOW ROLLING IN FOR THE G. O. P. AFTER THE SHADOW CREEK MEETING IN OCTOBER ACCORDING TO FEDERAL ELECTION COMMISSION RECORDS MR. WYNN MADE GOOD ON HIS QUARTER MILLION DOLLAR PLEDGE TO THE R. N. C. MIRAGE RESORTS' GOLDEN NUGGET CASINO GAVE TWO HUNDRED THIRTY THOUSAND DOLLARS MR. WYNN CHIPPED IN AN ADDITIONAL TWENTY THOUSAND DOLLARS PERSONALLY OTHER SHADOW CREEK PARTICIPANTS ALSO GAVE GENEROUSLY FRANK J. FERTITTA JUNIOR RETIRED CHAIRMAN OF PALACE STATION HOTEL CASINO DELIVERED A TOTAL OF TWO HUNDRED FIFTY THOUSAND DOLLARS TO THE R. N. C. IN NOVEMBER MARNELL CORRAO ASSOCIATES A LAS VEGAS CONSTRUCTION FIRM THAT SERVES THE CASINO INDUSTRY GAVE THE R. N. C. EIGHTY THOUSAND DOLLARS ITS PRESIDENT ANTHONY MARNELL THE SECOND WHO ALSO SERVES AS CHAIRMAN OF RIO HOTEL AND CASINO INCORPORATED CAME UP WITH TWENTY THOUSAND DOLLARS HIMSELF BEFORE ALL IS SAID AND DONE I EXPECT THE PLEDGES WILL TOTAL MORE THAN A MILLION DOLLARS SAYS TOM WIESNER THE REPUBLICAN NATIONAL COMMITTEEMAN FROM NEVADA AND THE OWNER OF BIG DOGS HOSPITALITY GROUP A CHAIN OF RESTAURANT CASINOS SOME OF THE MONEY HAS ALREADY FOUND ITS WAY BACK TO NEVADA WHERE DEMOCRATIC SENATOR RICHARD BRYAN IS UP FOR RE ELECTION THIS YEAR IN LATE NOVEMBER THE R. N. C. TRANSFERRED FIFTY THOUSAND DOLLARS TO THE NEVADA REPUBLICAN PARTY F. E. C. RECORDS INDICATE I THINK THEY PROBABLY SENT IT TO US AS A THANK YOU SAYS BRIAN MCKAY THE STATE REPUBLICAN PARTY CHAIRMAN WHO IS ALSO A REGISTERED LOBBYIST FOR CIRCUS CIRCUS MR. WYNN SAYS THAT DESPITE THE WAY SHADOW CREEK WAS BILLED IT WAS NEVER MEANT TO BE AN INDUSTRY FORUM AND HE AND MESSRS FERTITTA AND MARNELL SAY THEIR OWN CONTRIBUTIONS WERE SPURRED BY PERSONAL POLITICAL BELIEFS NOT CASINO RELATED MATTERS QUOTE THIS WAS JUST A GROUP OF GUYS WHO HAVE COMMON CONCERNS QUOTE MR. WYNN SAYS CHIEF AMONG HIS OWN CONCERNS THESE DAYS IS PRESIDENT CLINTON'S TAX INCREASE ON THE WEALTHIEST AMERICANS I RESENT THE IDEA THAT THE CLINTON PEOPLE HAVE RESORTED TO POPULIST RHETORIC SAYS MR. WYNN WHOSE BASE SALARY IS TWO POINT FIVE MILLION DOLLARS AND WHO IN NINETEEN NINETY TWO CASHED IN STOCK OPTIONS FOR A PRETAX PROFIT OF THIRTY POINT FOUR MILLION DOLLARS MR. WYNN ALSO IS UPSET ABOUT THE CLINTON PROVISION CURBING COMPANIES' ABILITY TO DEDUCT EXECUTIVE PAY ABOVE ONE MILLION DOLLARS AND HE ATTACKS THE CLINTON HEALTH CARE PLAN AS MISGUIDED GIVEN ALL THE GRIPING DEMOCRATIC SENATOR HARRY REID OF NEVADA IS CONVINCED THAT THE MONEY POURING INTO THE R. N. C. HAS NOTHING TO DO WITH THE CASINO INDUSTRY TRYING TO ESTABLISH ITSELF POLITICALLY I'VE HEARD FROM SOME PEOPLE IN THIS GROUP THAT THEY DIDN'T WANT TO PAY MORE TAXES PERIOD SAYS THE SENATOR WHO ONCE SERVED AS CHAIRMAN OF THE NEVADA GAMING COMMISSION BUT CONSIDERING THE GUEST LIST AT THE HIGH POWERED SHADOW CREEK CONFAB INCLUDING THE TOP EXECUTIVES OF HILTON HOTELS CORPORATION CAESARS WORLD INCORPORATED PROMUS COMPANIES AND INTERNATIONAL GAME TECHNOLOGIES SOME CASINO EXECUTIVES FEAR THAT THE R. N. C. CONTRIBUTIONS WILL BE SEEN AS A HEAVY HANDED ATTEMPT BY THE INDUSTRY TO PLAY PARTISAN POLITICS ONCE IT BECAME EVIDENT THAT THE SHADOW CREEK GATHERING INCLUDED FUND RAISING WE BECAME QUITE UNCOMFORTABLE AND HAVE NOT RESPONDED SAYS RAYMOND C. AVANSINO JUNIOR HILTON'S PRESIDENT SEVERAL OTHER ATTENDEES SAY THEY SHARE THOSE SENTIMENTS FOR HIS PART MR. WYNN SAYS HE NEVER EVEN MEANT FOR THE SHADOW CREEK BREAKFAST TO BE A FUND RAISER HE SAYS HE INVITED THE INDUSTRY'S LEADERS TO MEET MR. BARBOUR PARTLY AS A FAVOR TO MR. MORAN THE FINANCE COMMITTEE CHAIRMAN WHO IS A CLOSE FRIEND THE TWO HUNDRED FIFTY THOUSAND DOLLARS PITCH MR. WYNN SAYS AROSE QUOTE EXTEMPORANEOUSLY QUOTE BUT OTHERS THINK THAT WITH THE INDUSTRY GROWING SO RAPIDLY THERE'S NOTHING WRONG WITH LAYING THAT KIND OF MONEY DOWN THIS WAS NO DIFFERENT THAN THE PEOPLE IN THE MOTION PICTURE INDUSTRY OR THE AUTOMOBILE INDUSTRY GETTING TOGETHER SAYS MR. WIESNER THE G. O. P. COMMITTEEMAN THE GAMBLING INDUSTRY OUGHT TO HAVE A NATIONAL PRESENCE THE CITY GOVERNMENT MAY BE CLOSE TO REACHING ITS FIRST DEAL INVOLVING THE SALE OF HISTORIC BANK BUILDINGS ALONG SHANGHAI'S BUND THE PRE WORLD WAR TWO FINANCIAL CENTER HONGKONG AND SHANGHAI BANKING CORPORATION AND THE LOCAL PUDONG DEVELOPMENT BANK ARE RIVAL BIDDERS FOR WHAT WAS ONCE HONGKONG BANK'S LANDMARK COLONIAL HEADQUARTERS ON THE BUND ACCORDING TO LOCAL OFFICIALS AND FOREIGN BANKERS THE BUILDING HAS BEEN HOME TO SHANGHAI'S CITY GOVERNMENT SINCE THE COMMUNISTS TOOK OVER THE NATION IN NINETEEN FORTY NINE EXECUTIVES OF BOTH BANKS DECLINED TO COMMENT ON SPECIFICS HOWEVER PEOPLE CLOSE TO THE NEGOTIATIONS SAID THE CITY GOVERNMENT HAS REDUCED ITS OFFERING PRICE TO HONGKONG BANK FOR THE SYMBOLIC BUT NOW RUN DOWN STRUCTURE TO AROUND FIFTY MILLION DOLLARS FROM ABOUT ONE HUNDRED SEVENTY MILLION DOLLARS IN THE EARLY NINETEEN NINETIES THAT'S STILL A PRINCELY SUM THAT EASILY WOULD MAKE THE TRANSACTION THE MOST COSTLY FOR A SINGLE BUILDING IN CHINA BUILDINGS ALONG THE BUND WHOSE STATELY GRANITE EXTERIORS REMAIN LARGELY UNCHANGED AFTER FORTY FIVE YEARS OF COMMUNISM ARE PERHAPS THE MOST EVOCATIVE SYMBOL OF PRE WORLD WAR TWO COLONIALISM IN CHINA FROM THE LATE NINETEENTH CENTURY UNTIL THE COMMUNISTS TOOK POWER SHANGHAI SERVED AS THE ASIAN HEADQUARTERS OF MANY INTERNATIONAL BANKS WHICH PROFITED IMMENSELY BY SERVING BUSINESSMEN WHO TRADED OPIUM COTTON AND OTHER GOODS FROM THEIR FOREIGN CONCESSIONS IN THE CITY CHINESE OFFICIALS NEVER LOST SIGHT OF THAT SYMBOLISM MAKING THE BUND THE HOME OF CITY GOVERNMENT ORGANS AND CHINESE BANKS BUT AS THE CITY NOW CONTEMPLATES WAYS OF RESTORING ITS STATUS AS AN EAST ASIA FINANCIAL CENTER IT HAS NOTIFIED CURRENT RESIDENTS OF BUILDINGS ALONG THE STRIP THAT THEY SHOULD BE PREPARED TO RELOCATE TO MAKE WAY FOR THE RETURN OF ONE TIME IMPERIALISTS PUDONG DEVELOPMENT BANK IS CONSIDERED A LONG SHOT AT GETTING THE PROPERTY AS GOVERNMENT OFFICIALS IN SHANGHAI HINTED THAT THEY WOULD HAVE TO CHARGE ANY LOCAL BANK CONSIDERABLY LESS THAN WHAT THEY WOULD DEMAND FROM A FOREIGN BANK MAKING SUCH A DEAL LESS ATTRACTIVE FROM THE SELLER'S POINT OF VIEW OTHER FOREIGN BANKS AND FINANCIAL INSTITUTIONS INCLUDING AMERICAN INTERNATIONAL GROUP AND BANQUE INDOSUEZ A FRENCH CONCERN HAVE HELD SERIOUS NEGOTIATIONS WITH CITY OFFICIALS ON THE PURCHASE OF THEIR OLD SHANGHAI HEADQUARTERS EXECUTIVES OF BOTH COMPANIES CONFIRMED BUT SHANGHAI CITY GOVERNMENT OFFICIALS AND FOREIGN BANKERS ARE PAYING PARTICULARLY CLOSE ATTENTION TO HONGKONG BANK'S NEGOTIATIONS IF SUCH A HIGH PROFILE DEAL WERE COMPLETED THEY SAID OTHER BANKS MIGHT CONSIDER THE CITY'S EXORBITANT ASKING PRICES IN A MORE FAVORABLE LIGHT ONE PERSON CLOSE TO THE GOVERNMENT SAID THERE ISN'T EVEN AN INFORMAL AGREEMENT WITH HONGKONG BANK BUT THAT HE BELIEVED NEGOTIATIONS WOULD BE SUCCESSFULLY CONCLUDED BY YEAR END HONGKONG BANK OFFICIALS SAID THEY ARE ATTRACTED TO THE STRUCTURE WHICH DATES TO NINETEEN TWENTY THREE FOR NOSTALGIC REASONS BUT SKEPTICAL ABOUT ITS USEFULNESS FOR MODERN BANKING QUOTE WE'RE QUITE INTERESTED IN THE BUILDING ITSELF BUT SERIOUS PRACTICAL PROBLEMS ARE INHERENT QUOTE IN PURCHASING IT BACK FROM THE GOVERNMENT SAID BOB SHERBIN A HONGKONG BANK SPOKESMAN INDEED FOR FOREIGN BANKS THE PRICE OF READMISSION IS HIGH PARTICULARLY WHEN THEY CONSIDER THAT CHINA CONFISCATED THE PROPERTIES FROM THEM IN THE FIRST PLACE IN NINETEEN NINETY VICE PREMIER ZHU RONGJI THEN SHANGHAI MAYOR FIRST ALLOWED THE POSSIBILITY OF THE SALE OF BUND BUILDINGS BUT DISAGREEMENT AMONG TOP LEVEL CHINESE OVER THE APPROPRIATENESS OF ANY SALE AND UNREALISTIC QUOTATIONS HAVE SO FAR PREVENTED ANY DEAL IN DECEMBER THE CITY ESTABLISHED A CORPORATION WITH THE EXPLICIT PURPOSE OF RE ESTABLISHING THE BUND AS THE WALL STREET OF CHINA THE CORPORATION WILL OVERSEE THE SALE OF BUILDINGS AND THE RESETTLEMENT OF GOVERNMENT UNITS AND COMPANIES CURRENTLY USING THE PROPERTIES ACCORDING TO WU JIALU THE OFFICIAL APPOINTED AS DIRECTOR OF THE CORPORATION SHANGHAI'S STOCK MARKET THE NEW NATIONAL CURRENCY SWAP CENTER MOST LOCAL BROKERAGE HOUSES AND THE SHANGHAI BASED BANK OF COMMUNICATIONS ALREADY HAVE ESTABLISHED OFFICES THERE CITY GOVERNMENT OFFICIALS HAVE ALSO BEGUN TRANSFERRING THEIR OPERATIONS TO THE NEW GOVERNMENT CENTER NEAR SHANGHAI'S PEOPLE'S PARK MR. WU SAYS TWENTY OF THE ONE HUNDRED THIRTEEN BANKS THAT ONCE HAD OFFICES ON THE BUND HAVE SOUGHT AT LEAST INFORMAL INFORMATION ABOUT REPURCHASES AND WE'VE ONLY JUST STARTED HE ADDS AMONG THE BANKS AND FINANCIAL COMPANIES THAT HAVE MADE INQUIRIES ARE JARDINE FLEMING STANDARD CHARTERED BANK CITIBANK MORGAN STANLEY GROUP INCORPORATED CREDIT LYONNAIS S. A. AND BANK OF EAST ASIA THOSE COMPANIES SAID THEY HAVE HAD ONLY PRELIMINARY DISCUSSIONS WITH SHANGHAI OFFICIALS NOW THAT THE CHINESE SEEM SERIOUS ABOUT RENOVATING THE BUND WE ARE A LITTLE MORE INTERESTED SAID DAVID KIANG CHIEF EXECUTIVE FOR CHINA AND MACAO OF HONG KONG'S STANDARD CHARTERED BANK WE WOULD LOVE TO GET IT BACK FOR SENTIMENTAL REASONS THERE MIGHT ALSO BE ECONOMIC REASONS AS WELL IF THE BUND REALLY BECOMES AN IMPORTANT FINANCIAL CENTER BUT MR. KIANG LIKE MOST FOREIGN BANK EXECUTIVES EMPHASIZED THAT THE INTERIORS OF THE OLD BANK BUILDINGS HAVE DETERIORATED TO SUCH A LOW STATE THAT THE COST OF RENOVATIONS ALONE MIGHT EXCEED THE COST OF BUILDING A NEW HEADQUARTERS ELSEWHERE JAPAN'S HOUSING STARTS IN DECEMBER ROSE FOUR POINT NINE PERCENT FROM THE YEAR EARLIER MONTH TO ONE HUNDRED TWENTY FIVE THOUSAND EIGHT HUNDRED FIFTY EXTENDING THE STREAK OF YEAR TO YEAR GAINS TO NINETEEN MONTHS THE CONSTRUCTION MINISTRY REPORTED FOR ALL OF NINETEEN NINETY THREE HOUSING STARTS WERE UP FIVE POINT NINE PERCENT AT ONE POINT FOUR NINE MILLION BRIDES LES BAINS FRANCE WHEN THE FRENCH ALPS WERE CHOSEN AS THE SITE OF THE NINETEEN NINETY TWO WINTER OLYMPICS ORGANIZERS PROMISED THAT THE GAMES WOULD PAY FOR THEMSELVES AND GIVE A LONG TERM BOOST TO THE LOCAL ECONOMY THEY WERE ONLY HALF RIGHT AFTER TWO YEARS MOST OF THE RESORTS IN THE SAVOIE AREA THAT HOSTED EVENTS WITH ONE NOTABLE EXCEPTION ARE BREATHING A SIGH OF RELIEF TOURISM THE LIFEBLOOD OF THE REGION IS RISING AND IS EXPECTED TO CONTINUE TO DO SO DESPITE BAD PUBLICITIY ABOUT AVALANCHES WHICH THIS PAST WEEKEND KILLED SIX PEOPLE AND THE HIGHER RECEIPTS ARE HELPING LOCAL AUTHORITIES TO RECOUP THE INVESTMENTS THEY MADE TO UPGRADE THEIR RESORTS TO OLYMPIC STANDARDS THE GAMES THEMSELVES DEFIED EXPECTATIONS BY LOSING MONEY LARGELY BECAUSE OF BIG COST OVERRUNS ON A BOBSLED TRACK AT LA PLAGNE AND SKI JUMPS AT COURCHEVEL BUT LOCAL OFFICIALS SAY THE DEFICIT OF TWO HUNDRED EIGHTY MILLION FRENCH FRANCS FORTY SEVEN POINT SIX MILLION DOLLARS OUT OF SPENDING OF FOUR POINT TWO BILLION FRANCS IS A MODEST PRICE TO PAY FOR THE GOODWILL AND INTERNATIONAL PUBLICITY THE OLYMPICS GENERATED MOREOVER BY PACKING TEN TO FIFTEEN YEARS OF CAPITAL INVESTMENT INTO JUST FOUR YEARS BEFORE THE GAMES MANY RESORTS BELIEVE THEY ARE NOW WELL PLACED TO COMPETE MORE EFFECTIVELY WITH RIVALS IN THE AUSTRIAN AND SWISS ALPS QUOTE I DON'T SEE ANYTHING NEGATIVE FROM THE GAMES THE FACT THAT WE ARE A LITTLE INDEBTED ISN'T BAD GIVEN WHAT WE WERE ABLE TO DO WITH THE MONEY SAYS MICHEL GIRAUDY THE TOURISM DIRECTOR OF VAL D'ISERE WHERE THE MEN'S DOWNHILL RACES WERE STAGED INDEED DESPITE RECESSION IN EUROPE BUSINESS IN VAL D'ISERE AND NEARBY RESORTS ROSE AS MUCH AS TWENTY PERCENT LAST YEAR WITH A MARKED INCREASE IN VISITORS FROM THE U. S. AND JAPAN ALTHOUGH IT'S STILL EARLY THE CRUCIAL WINTER SEASON THIS YEAR IS OFF TO A STRONG START TOO A BIG FACTOR IS NEW ROADS AND A HIGH SPEED RAIL LINE IN THE REGION THAT THE FRENCH GOVERNMENT FUNDED AS PART OF ITS CONTRIBUTION TO THE GAMES THEY HAVE MADE ACCESS TO THE SOMETIMES REMOTE MOUNTAIN VILLAGES MUCH EASIER JUST AS IMPORTANT BANKERS AND LOCAL OFFICIALS SAY WAS THE FINANCIAL PRUDENCE SHOWN BY THE RESORTS THEMSELVES MOST OF WHICH WERE CAREFUL NOT TO OVERREACH WHEN ADDING MOUNTAINSIDE EQUIPMENT AND TOURIST ACCOMMODATIONS THE ONE EXCEPTION IS THE TINY VILLAGE OF BRIDES LES BAINS POPULATION SIX HUNDRED SIX WHOSE CURRENT WOES PROVIDE A SOBER LESSON TO ANY WOULD BE HOSTS OF OLYMPIC EVENTS ONLY THOSE WHO HAD FANTASTIC DREAMS ARE NOW FINDING THAT THE AWAKENING IS BRUTAL SAYS SOPHIE GUILLAUD AN OFFICIAL AT THE CHAMBER OF COMMERCE IN CHAMBERY THE SAVOIE'S BIGGEST TOWN BRIDES LES BAINS WAS THE SITE OF THE OLYMPIC VILLAGE NOT CONTENT WITH JUST SPRUCING ITSELF UP FOR THE OCCASION THE RUN DOWN SPA EMBARKED ON A TWO HUNDRED MILLION FRANC INVESTMENT PROGRAM THAT ITS MAYOR HOPED WOULD PROPEL IT INTO A BRAVE NEW ERA OF PROSPERITY BESIDES HELPING TO FINANCE A NEW CABLE CAR TO MERIBEL A RESORT FURTHER UP THE MOUNTAINSIDE WHERE THE WOMEN'S SKI RACES WERE HELD THE VILLAGE BUILT A HUGE PARKING FACILITY REBUILT ITS CASINO TENNIS COURTS AND TOWN HALL AND RENOVATED BOTH THE SPA FACILITIES AND THE GRAND HOTEL NEXT TO THEM THE NUMBER OF TOURIST BEDS IN THE VILLAGE WAS INCREASED SIXTY TWO PERCENT TO FOUR THOUSAND BUT LESS THAN HALF THE VILLAGE'S EXPENSES WERE REIMBURSED BY THE FRENCH OLYMPIC ORGANIZERS AND BY MERIBEL IN ITS CONTRIBUTION TO THE CABLE CAR AFTER PAYING WHAT IT COULD FROM ITS OWN MEAGER RESOURCES BRIDES LES BAINS NOW HAS DEBTS OF ABOUT FIFTY MILLION FRANCS AND AT LEAST ONE COSTLY WHITE ELEPHANT ON ITS HANDS AN OLYMPIC SIZE GYMNASIUM COMPLETE WITH ELECTRONIC SCOREBOARD THE GYM'S MAIN USE THESE DAYS IS AS A LUNCH CLUB FOR THE MAINLY ELDERLY POPULATION MAYOR JEAN FRANCOIS CHEDAL WHO IS ALSO A SKI INSTRUCTOR INSISTS I DON'T HAVE ANY REGRETS BUT CONTRACTORS THAT ARE STILL OWED MONEY FOR THEIR WORK ARE LIVID AND BANKS HAVE EFFECTIVELY BOYCOTTED THE VILLAGE MR. CHEDAL MADE THINGS WORSE FOR HIMSELF BY NOT SEEKING LOANS UNTIL AFTER WORK HAD STARTED ALL THE BANKS HE THEN APPROACHED REFUSED TO GIVE CREDIT SAYING THE RENOVATION PROGRAM WAS TOO AMBITIOUS ANY COMMUNITY THAT ACTS LIKE THAT RUINS ITS REPUTATION SAYS JACQUES GUERBER A BOARD MEMBER OF CREDIT LOCAL DE FRANCE A RECENTLY PRIVATIZED FRENCH BANK THAT SPECIALIZES IN FINANCING LOCAL AUTHORITIES WHILE IT HELPED TO FUND MANY OTHER OLYMPIC RELATED PROJECTS IN THE REGION CREDIT LOCAL HAS SO FAR STEERED CLEAR OF BRIDES LES BAINS MR. GUERBER SAYS HOWEVER THAT THE BANK MAY BE READY TO HELP FIND A CREDIBLE SOLUTION TO THE PROBLEMS TWO OTHER VILLAGES PRALOGNAN AND LES SAISIES INCURRED OLYMPIC RELATED COSTS THEY COULDN'T HANDLE BUT THEY HAVE MANAGED TO RESCHEDULE THEIR DEBTS AND ALL THE RESORTS HAVE HAD TO DIG DEEP INTO THEIR POCKETS TO FINANCE THE GAMES RAISING LOCAL TAXES AND SLOWING MUNICIPAL INVESTMENT TO A TRICKLE FOR THE IMMEDIATE FUTURE BUT BANKERS AND LOCAL OFFICIALS SAY THE INCREASED FINANCIAL BURDEN WAS EXPECTED AND EXCEPT FOR BRIDES LES BAIN EASILY MANAGED THE SAVOIE REGIONAL AUTHORITIES HAD EVEN SET ASIDE RESERVES IN CASE THE GAMES MADE A LOSS AND CONSEQUENTLY ABSORBED THEIR SHARE OF THE DEFICIT WITHOUT DIFFICULTY THE FRENCH GOVERNMENT COVERED SEVENTY FIVE PERCENT OF THE SHORTFALL IN THE IMMEDIATE AFTERMATH OF THE GAMES TIMES HAVE GROWN TOUGHER FOR SOME THE HEAVY CONSTRUCTION THAT WENT ON BEFORE THE GAMES SPARKED A BOOM THAT CREATED FOURTEEN THOUSAND JOBS BETWEEN NINETEEN EIGHTY FIVE AND NINETEEN NINETY AND ENABLED THE REGION TO WARD OFF THE RECESSION STALKING THE REST OF FRANCE ONCE THE GAMES WERE OVER HOWEVER THE SLUMP CAME ALL THE HARDER BUT MICHEL BARNIER A SAVOIE POLITICIAN WHO PLAYED A CENTRAL ROLE IN ORGANIZING THE OLYMPICS HAS SOARED UP THE CAREER LADDER HE IS CURRENTLY ENVIRONMENT MINISTER IN THE NATIONAL GOVERNMENT AND FOR MR. GIRAUDY VAL D'ISERE'S TOURISM DIRECTOR THE LESSON OF THE OLYMPICS IS CLEAR QUOTE WE ARE RICHER AND HAPPIER THAN WE REALIZE QUOTE HE SAYS SPAIN'S MERCHANDISE TRADE DEFICIT ON A CUSTOMS BASIS SHRANK THIRTY ONE PERCENT TO TWO POINT FIVE OH TRILLION PESETAS SEVENTEEN POINT SEVEN BILLION DOLLARS IN NINETEEN NINETY THREE FROM THREE POINT SIX OH TRILLION PESETAS IN NINETEEN NINETY TWO THE FINANCE MINISTRY SAID THE TRADE DEFICIT NARROWED TWELVE PERCENT TO TWO HUNDRED TWENTY ONE POINT EIGHT OH BILLION PESETAS IN DECEMBER FROM A YEAR EARLIER THE MINISTRY SAID INCOMING ORDERS IN GERMANY'S MACHINE INDUSTRY GREW A REAL ONE PERCENT IN DECEMBER FROM A YEAR AGO ACCORDING TO THE VDMA INDUSTRY GROUP ALTHOUGH DOMESTIC ORDERS WERE FOURTEEN PERCENT BELOW THE PREVIOUS YEAR'S LEVEL FOREIGN ORDERS ROSE NINETEEN PERCENT FROM A YEAR AGO IT SAID FOR NINETEEN NINETY THREE MACHINE INDUSTRY ORDERS FELL A REAL EIGHT PERCENT FROM NINETEEN NINETY TWO DOMESTIC ORDERS FELL FIFTEEN PERCENT WHILE FOREIGN ORDERS ROSE ONE PERCENT NAVISTAR INTERNATIONAL CORPORATION SAID IT WILL ADD A SECOND SHIFT OF THREE HUNDRED WORKERS THIS MONTH AT ITS CHATHAM ONTARIO PLANT WHICH MAKES HEAVY TRUCKS NAVISTAR SAID THE MOVE WILL INCREASE TRUCK PRODUCTION AT THE PLANT THIRTY PERCENT THE PLANT NOW HAS ABOUT ONE THOUSAND FIVE HUNDRED EMPLOYEES NAVISTAR SAID IT SOLD THIRTY FIVE THOUSAND ONE HUNDRED HEAVY TRUCKS IN NORTH AMERICA IN THE FISCAL YEAR ENDED OCTOBER THIRTY FIRST UP TWENTY EIGHT POINT EIGHT PERCENT FROM NINETEEN NINETY TWO THIS SPRING THE HOUSE WILL CONSIDER TWO COMPLEMENTARY BILLS ON THE NOW FAMOUS INFORMATION SUPERHIGHWAY THE ANTITRUST REFORM ACT AND THE NATIONAL COMMUNICATIONS COMPETITION AND INFORMATION INFRASTRUCTURE ACT THE BILLS ARE AIMED AT LIFTING MOST OF THE LIMITATIONS ON LOCAL TELEPHONE AND CABLE COMPANIES ASPIRING TO COMPETE IN MULTIMEDIA SERVICES THE NINETEEN EIGHTY FOUR CONSENT AGREEMENT THAT BROKE UP A. T. AND T. PROHIBITED LOCAL TELEPHONE OPERATING COMPANIES FROM ENTERING THE LONG DISTANCE MARKET FROM MARKETING THEIR OWN INFORMATION SERVICES AND FROM MAKING TELEPHONE EQUIPMENT TO A DYED IN THE WOOL FREE MARKETER SUCH AS MYSELF THESE RESTRAINTS APPEAR TO SUPPRESS COMPETITION AND BE WRONGHEADED YET THE PUBLIC AND CONGRESS SHOULD CONSIDER THE RATIONALE BEHIND THE ORIGINAL ANTITRUST AGREEMENT CAREFULLY BEFORE LIFTING THESE BANS THE LOCAL PHONE COMPANIES THE BABY BELLS ARE REGULATED MONOPOLIES AS SUCH THEY MUST JUSTIFY THEIR RATES TO A STATE PUBLIC UTILITIES COMMISSION A REQUIREMENT THAT THE ADMINISTRATION PLANS TO MAINTAIN LAW AND ECONOMICS REQUIRE THAT THESE AUTHORITIES GRANT TARIFFS HIGH ENOUGH FOR THE FIRMS TO EARN PROFITS IF A COMMISSION REFUSES TO APPROVE CHARGES THAT WILL COVER COSTS AND ALLOW A MODEST PROFIT THE UTILITY EVENTUALLY WILL FAIL AND EXIT THE BUSINESS NEEDLESS TO SAY THAT WOULD NOT BENEFIT THE TELEPHONE COMPANIES' CUSTOMERS NOR WOULD THE COURTS COUNTENANCE A COMMISSION'S COMMITTING SUCH FOLLY ARRIVING AT AN APPROPRIATE RATE IS NEITHER EASY NOR MECHANICAL THE PHONE COMPANY MUST EARN ENOUGH TO COVER THE COST OF ITS INVESTMENT INCLUDING INTEREST AND DIVIDENDS THUS THE REGULATORS MUST START BY VALUING THE REGULATED UTILITY'S INVESTMENTS THE RATE BASE THIS PROCEDURE IS COMPLEX AND SUBJECT TO IMPONDERABLES AMONG THE PROBLEMS ALL DATA ORIGINATE WITH THE REGULATED FIRM WHAT COSTS ARE PROPER TO INCLUDE IF THE FIRM IS BUYING FROM A SUBSIDIARY REGULATORS MUST JUDGE THE APPROPRIATENESS OF THE TRANSFER PRICE IN THE CASE OF A TELEPHONE COMPANY PURCHASING UNIQUE AND EXPENSIVE SWITCHING EQUIPMENT FROM ITS SUBSIDIARY FOR EXAMPLE REGULATORS WILL BE UNABLE TO DETECT WHETHER THE DAUGHTER COMPANY IS OVERCHARGING ITS PARENT AND THUS PROVIDING GROUNDS FOR THE REGULATED BELL COMPANY TO JUSTIFY CHARGING ITS CAPTIVE CUSTOMERS HIGHER PRICES ALTERNATIVELY IF THE STATE COMMISSION EXTENDS ITS OVERSIGHT TO MANUFACTURING FACILITIES THE REGULATED ENTERPRISE MAY FIND IT PROFITABLE TO LOSE MONEY IN THE COMPETITIVE MARKET POSSIBLY BY SELLING TELEPHONES TO THE PUBLIC AT LOW COST THUS INCREASING ITS SHARE OF THE MARKET AND THE SIZE OF ITS MANUFACTURING PLANT REGULATORS MUST THEN GRANT HIGH ENOUGH PHONE RATES TO COVER THE COMPANY'S SWOLLEN INVESTMENT INCLUDING THE EXPANDED TELEPHONE PRODUCTION FACILITY THE IMPOSSIBILITY OF SORTING OUT THESE SCHEMES LIES BEHIND THE ORIGINAL PROHIBITION ON THE BABY BELLS FROM MANUFACTURING OFFERING SERVICES OR ENTERING THE LONG DISTANCE MARKET THE NATIONAL COMMUNICATIONS COMPETITION AND INFORMATION INFRASTRUCTURE ACT WHICH IS SPONSORED BY REPRESENTATIVE EDWARD MARKEY D. MASSACHUSETTS AND CO SPONSORED BY REPRESENTATIVES JACK FIELDS R. TEXAS AND RICK BOUCHER D. VIRGINIA WOULD AUTHORIZE THE LOCAL PHONE COMPANIES TO OFFER CABLE T. V. SERVICE IN COMPETITION WITH EXISTING COMPANIES ALTHOUGH THE PROPOSED ACT BANS CROSS SUBSIDIZATION ACCOUNTING METHODS ARE TOO UNCERTAIN TO MEASURE INFLATED OR UNDERPRICED SERVICES FOR EXAMPLE OFFERING A CABLE SYSTEM WOULD REQUIRE THAT THE TELEPHONE COMPANY INSTALL ADDITIONAL CAPACITY PROBABLY FIBER OPTICS PAYING GENEROUS WAGES EMPLOYING ADDITIONAL LABOR QUOTE IN ORDER TO SPEED THE INSTALLATION QUOTE AND TIMING STREET DIGGING FOR OFF HOURS AT PREMIUM RATES TO MINIMIZE TRAFFIC DISRUPTION WOULD BOOST THE COST OF THE NEW CAPACITY SINCE REGULATORS MUST PERMIT A FAIR RETURN ON INVESTMENT THESE COSTLY BUT JUSTIFIABLE STEPS WOULD PERMIT THE REGULATED UTILITY TO RATIONALIZE HIGHER TELEPHONE CHARGES TO CAPTIVE RESIDENTIAL USERS WHILE ITS T. V. TRANSMISSION BUSINESS MET OR PERHAPS UNDERCUT THE RATES OF THE EXISTING CABLE COMPANY AS LONG AS THE BELL OPERATING COMPANIES REMAIN REGULATED LICENSING THEM TO COMPETE WITH NONREGULATED FIRMS TO MANUFACTURE SWITCHING EQUIPMENT OR OTHER TELECOMMUNICATIONS GEAR OR TO VIE IN THE LONG DISTANCE MARKET RAISES SIGNIFICANT OPPORTUNITIES FOR CROSS SUBSIDIZATION AND MANIPULATION OF THE RATE BASE LEADING TO INFLATED CHARGES TO RESIDENTIAL CUSTOMERS AND SLASH OR BELOW COST RATES IN COMPETITIVE SECTORS FAITH IN REGULATORS' ABILITIES TO DETECT THESE STRATAGEMS IS NOT JUSTIFIED ONLY TRUE DEREGULATION COULD ELIMINATE THESE BIASES TO BE SUCCESSFUL IT REQUIRES THAT STATES AND COMMUNITIES ALLOW ALL COMERS TO ENTER THE TELEPHONE BUSINESS RESTRICTIONS ON LICENSING RATES OR SERVICES WOULD BE INCOMPATIBLE WITH OPEN COMPETITION AT LEAST INITIALLY SUCH DECONTROL WOULD MEAN HIGHER CHARGES FOR LOCAL USERS ALTHOUGH RATES MIGHT FALL EVENTUALLY VICE PRESIDENT AL GORE HAS EMPHASIZED HOWEVER THAT ALL CITIZENS MUST HAVE ACCESS TO THIS NEW INFORMATION HIGHWAY SINCE MANY WILL BE UNWILLING OR UNABLE TO PAY THE COST OF CONNECTING TO THIS TELECOMMUNICATIONS NETWORK CROSS SUBSIDIES WHICH ARE INCOMPATIBLE WITH FREE MARKETS ARE ALMOST CERTAIN TO BE REQUIRED THE ADMINISTRATION DOES NOT INTEND TO PROVIDE TOTAL FREEDOM FROM STATE SUPERVISION IN A DECEMBER SPEECH MR. GORE SAID THAT IT WILL ESCHEW REGULATION FOR REGULATION'S SAKE AND THE BLIND ADHERENCE TO THE DEAD HAND OF A FREE MARKET ECONOMIST NEVERTHELESS ONLY THE LIVE HAND OF A REALLY FREE MARKET IS COMPATIBLE WITH LIFTING THE RESTRICTIONS PLACED ON THE BELL OPERATING COMPANIES MR. MOORE A HOOVER INSTITUTION FELLOW WAS A MEMBER OF THE COUNCIL OF ECONOMIC ADVISERS FROM NINETEEN EIGHTY FIVE TO NINETEEN EIGHTY NINE GERMANY'S LARGEST AUTO MAKER VOLKSWAGEN A. G. SAID ITS COST CUTTING EFFORTS OVER THE PAST FIFTEEN MONTHS HAVE YIELDED THE FINANCIALLY TROUBLED COMPANY THREE POINT FIVE BILLION MARKS TWO POINT OH ONE BILLION DOLLARS IN SAVINGS NEVERTHELESS THE COMPANY DIDN'T OFFER A NEW FORECAST FOR ITS NINETEEN NINETY THREE RESULTS PREVIOUSLY V. W. CHAIRMAN FERDINAND PIECH PREDICTED THE COMPANY WILL POST A NET LOSS OF TWO POINT THREE BILLION MARKS IN NINETEEN NINETY THREE CANADA'S GROSS DOMESTIC PRODUCT ROSE ZERO POINT THREE PERCENT IN NOVEMBER FROM OCTOBER SAID STATISTICS CANADA A GOVERNMENT AGENCY THE NOVEMBER RISE FOLLOWED G. D. P. INCREASES OF ZERO POINT TWO PERCENT IN OCTOBER AND ZERO POINT FIVE PERCENT IN SEPTEMBER G. D. P. IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION MANUFACTURING A MAJOR PART OF G. D. P. ROSE ZERO POINT SIX PERCENT IN NOVEMBER LED BY A TWO POINT ONE PERCENT INCREASE IN OUTPUT OF ELECTRICAL AND ELECTRONIC PRODUCTS SUNRISE TECHNOLOGIES INCORPORATED SAID THE FOOD AND DRUG ADMINISTRATION APPROVED THE MARKETING OF THE COMPANY'S SURGICAL SYSTEM FOR OBSTRUCTIVE NASAL AND SINUS DISEASE THE MEDICAL AND DENTAL SYSTEM MANUFACTURER SAID IT WILL FOCUS ON MARKETING THE SYSTEM TO SMALL HOSPITALS AND SURGICAL CENTERS UNION TEXAS PETROLEUM HOLDINGS INCORPORATED SAID IT WILL SPEND ONE HUNDRED SIXTY MILLION DOLLARS THIS YEAR ON CAPITAL PROJECTS DOWN FROM ONE HUNDRED NINETY TWO MILLION DOLLARS LAST YEAR THE OIL AND GAS COMPANY SAID THE SEVENTEEN PERCENT DECLINE PRIMARILY REFLECTS LOWER DEVELOPMENT SPENDING IN THE UNITED KINGDOM NORTH SEA FOLLOWING THE COMPLETION OF THE PIPER AND SALTIRE PROJECTS LAST YEAR EXPLORATION COMPANY OF LOUISIANA INCORPORATED SAID ITS RECENT PUBLIC OFFERING OF FORTY MILLION SHARES WAS OVERSUBSCRIBED AND THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY WILL OFFER FIFTY MILLION SHARES AT FIFTY CENTS EACH YIELDING PROCEEDS OF TWENTY FIVE MILLION DOLLARS BEFORE EXPENSES SAN JACINTO SECURITIES INCORPORATED OF DALLAS IS THE U. S. MANAGING SELLING AGENT PETSTUFF INCORPORATED SAID IT WILL OPEN SEVEN STORES IN SOUTHERN FLORIDA ON FEB FIVE THE COMPANY SAID TWO STORES WILL OPEN IN MIAMI WHILE OTHERS WILL OPEN IN NORTH MIAMI BOCA RATON LIGHT HOUSE POINT PEMBROKE PINES AND PLANTATION PEP BOYS MANNY MOE AND JACK SAID IT OPENED EIGHT AUTOMOTIVE SUPERSTORES EACH WITH AN AVERAGE OF TWENTY THREE THOUSAND SQUARE FEET INCLUDING ITS FIRST STORE IN KENTUCKY THE PHILADELPHIA AUTO PARTS AND SERVICE COMPANY WITH THREE EIGHTY SEVEN STORES AS OF JANUARY TWENTY NINTH SAID IT PLANS TO OPEN ABOUT FIFTY SUPERSTORES IN NINETEEN NINETY FOUR NORMA DENZER CUGINI WAS NAMED TO THE BOARD OF THIS BANK HOLDING COMPANY MS. CUGINI SIXTY FIVE YEARS OLD SUCCEEDS JANET S. HAY WHO DIED CHESTER HOLDINGS LIMITED SAID IT WILL PURCHASE JOEY'S CHILDREN'S WEAR A CHILDREN'S RETAIL CLOTHING CHAIN WITH SEVEN STORES IN THE NEW YORK METROPOLITAN AREA THAT IS CURRENTLY OPERATING UNDER CHAPTER ELEVEN BANKRUPTCY LAW PROTECTION TERMS WEREN'T DISCLOSED CHESTER SAID THAT THE DISCLOSURE STATEMENT HAS BEEN APPROVED BY THE BANKRUPTCY COURT AND THAT THE CONFIRMATION HEARING IS SCHEDULED FOR THE FIRST WEEK IN MARCH THE COMPANY SAID IT WILL CONSIDER EXPANDING JOEY'S IN NEW YORK NEW JERSEY PENNSYLVANIA AND CONNECTICUT KERR MCGEE CORPORATION SAID IT SET UP A SUBSIDIARY TO MARKET NATURAL GAS EFFECTIVE MARCH FIRST THE PARENT COMPANY CURRENTLY PRODUCES NEARLY THREE HUNDRED MILLION CUBIC FEET OF NATURAL GAS A DAY FROM OFFSHORE BLOCKS IN THE GULF OF MEXICO AND ONSHORE FIELDS IN THE U. S. AND CANADA THE UNIT TO BE CALLED KERR MCGEE NATURAL GAS INCORPORATED WILL OFFER SALES PURCHASING DISPATCHING TRANSPORTATION STORAGE CONTRACT ADMINISTRATION ACCOUNTING AND RISK MANAGEMENT JERRE L. STEAD AN EXECUTIVE VICE PRESIDENT OF AMERICAN TELEPHONE AND TELEGRAPH COMPANY WAS NAMED A DIRECTOR OF THIS COMMERCIAL PRINTER MR. STEAD FIFTY ONE YEARS OLD FILLS A VACANCY ON THE TWELVE MEMBER BOARD MARSH AND MCLENNAN COMPANIES ROBERT CLEMENTS SIXTY ONE YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT THE MARSH AND MCLENNAN RISK CAPITAL CORPORATION UNIT OF THIS PROFESSIONAL SERVICES FIRM BOTH POSTS ARE NEW MR. CLEMENTS WAS PRESIDENT OF THE PARENT DISPOSABLE PERSONAL INCOME ROSE ZERO POINT FIVE PERCENT IN DECEMBER FROM NOVEMBER MATCHING SPENDING GAINS DURING THE LAST MONTH OF THE YEAR THE COMMERCE DEPARTMENT SAID ANALYSTS SAID THE DATA WHICH HAVE BEEN ADJUSTED FOR INFLATION SUGGEST THAT THE IMPROVING LABOR MARKET IS HELPING TO LIFT THE INCOMES AND SPENDING HABITS OF AMERICANS STILL AMERICANS WERE WORSE OFF IN NINETEEN NINETY THREE IN TERMS OF INCOME GAINS THAN THEY WERE IN NINETEEN NINETY TWO WITH THE EFFECTS OF INFLATION STRIPPED AWAY INCOMES ROSE ONE POINT NINE PERCENT LAST YEAR AFTER INCREASING TWO POINT NINE PERCENT IN NINETEEN NINETY TWO THE COMMERCE DEPARTMENT SAID THE SLOWDOWN IN PERSONAL INCOME GROWTH LARGELY REFLECTED THE FACT THAT MANY AMERICANS IN AN EFFORT TO AVOID HIGHER TAXES SHIFTED BONUS PAYMENTS THAT ORDINARILY WOULD HAVE BEEN RECEIVED LAST YEAR TO LATE NINETEEN NINETY TWO IF THESE PAYMENTS HADN'T BEEN ACCELERATED THE GAP BETWEEN THE TWO YEARS WOULD HAVE BEEN NARROWER WITHOUT TAKING INTO ACCOUNT PRICE INCREASES DISPOSABLE INCOME ROSE ZERO POINT SIX PERCENT IN DECEMBER COMPARED WITH ZERO POINT FIVE PERCENT THE MONTH BEFORE FOR THE YEAR DISPOSABLE INCOME ROSE FOUR POINT SIX PERCENT COMPARED WITH SIX POINT FOUR PERCENT IN NINETEEN NINETY TWO SPENDING INCREASED THREE POINT THREE PERCENT IN NINETEEN NINETY THREE ADJUSTED FOR INFLATION COMPARED WITH TWO POINT SIX PERCENT IN NINETEEN NINETY TWO MOST OF THE INCREASED SPENDING DURING THE YEAR CAME FROM PURCHASES OF DURABLE GOODS SUCH AS CARS AND FURNITURE NONDURABLE PURCHASING WAS WEAK FOR DECEMBER THE SAVINGS RATE ROSE TO FOUR POINT TWO PERCENT FROM FOUR POINT ONE PERCENT THE MONTH BEFORE BUT FOR THE YEAR THE SAVINGS RATE SLIPPED TO FOUR PERCENT FROM FIVE POINT THREE PERCENT IN NINETEEN NINETY TWO HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS PRESIDENT RONALD S. SPOLANE THIRTY NINE YEARS OLD WAS ELECTED TO SUCCEED HIS FATHER AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS ELECTRONIC PARTS DISTRIBUTOR MICHAEL S. SPOLANE HIS FATHER DIED FRIDAY BECAUSE OF A HEART AILMENT HE WAS SIXTY SEVEN ERIC G. RODLI THIRTY SEVEN YEARS OLD WAS NAMED TO THE NEW POSITION OF CHIEF OPERATING OFFICER AT THE MAKER OF SPECIALTY THEATERS AND SIMULATOR RIDES FOR AMUSEMENT VENUES HE RETAINS HIS PREVIOUS POSTS AS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER VIRGINIA EASON WEINMANN AND ROBERT T. RATCLIFF WERE NAMED DIRECTORS OF THE BANKING COMPANY EXPANDING THE BOARD'S SIZE TO NINETEEN MEMBERS MS. WEINMANN SIXTY FOUR YEARS OLD IS PRESIDENT AND TREASURER OF TWE MINERAL CORPORATION MR. RATCLIFF FIFTY ONE IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RATCLIFF CONSTRUCTION COMPANY ALEXANDRIA LOUISIANA KNIGHT RIDDER INCORPORATED MIAMI POLK LAFFOON THE FOURTH FORTY EIGHT YEARS OLD WAS NAMED VICE PRESIDENT SLASH CORPORATE RELATIONS OF THIS NEWSPAPER PUBLISHING AND INFORMATION SERVICES COMPANY EFFECTIVE MARCH FIRST MR. LAFFOON SUCCEEDS FRANK N. HAWKINS JUNIOR FIFTY THREE WHO IS LEAVING TO BECOME PRESIDENT OF ACCESS ASIA GROUP A HONG KONG CONGLOMERATE PREVIOUSLY MR. LAFFOON WAS KNIGHT RIDDER'S ASSISTANT TO THE PRESIDENT LOUISIANA PACIFIC CORPORATION PORTLAND OREGON RONALD L. PAUL FIFTY YEARS OLD WAS ELECTED TO THE BOARD OF THIS FOREST PRODUCTS COMPANY HE SUCCEEDS JOHN C. HART WHO RETIRED MR. PAUL FORMERLY GENERAL MANAGER OF THE COMPANY'S SOUTHERN DIVISION WAS ALSO NAMED VICE PRESIDENT FOR OPERATIONS HE SUCCEEDS JAMES EISSES WHO WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT ERIC L. MATTSON WAS NAMED TO THE BOARD OF THIS PIPELINE COATING AND INSPECTION COMPANY INCREASING THE NUMBER OF MEMBERS TO NINE MR. MATTSON FORTY TWO IS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF BAKER HUGHES INCORPORATED THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT A. N. Z. BANKING GROUP LIMITED TWO HUNDRED FIFTY MILLION DOLLARS OF SUBORDINATED NOTES DUE FEBRUARY FIRST TWO THOUSAND FOUR PRICED AS SIX POINT TWO FIVES AT NINETY NINE POINT SEVEN OH FIVE TO YIELD SIX POINT TWO NINE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SIXTY FIVE BASIS POINTS ABOVE TREASURYS RATED SINGLE A TWO BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE A BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY BELL ATLANTIC NEW JERSEY TWO HUNDRED FIFTY MILLION DOLLARS OF DEBENTURES PRICED THROUGH A COMPETITIVE BID WON BY MORGAN STANLEY AND COMPANY THE DEBENTURES DUE FEBRUARY FIRST TWO THOUSAND FOUR WERE PRICED AS FIVE POINT EIGHT SEVEN FIVES AT NINETY NINE POINT EIGHT ONE TO YIELD FIVE POINT NINE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF TWENTY FIVE BASIS POINTS ABOVE TREASURYS THE DEBENTURES ARE RATED TRIPLE A BY MOODY'S AND DOUBLE A PLUS BY S. AND P. BELL ATLANTIC NEW JERSEY IS A UNIT OF BELL ATLANTIC CORPORATION FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED FIFTEEN MILLION DOLLARS OF NOTES DUE FEBRUARY SEVENTH TWO THOUSAND ONE PRICED AT PAR TO YIELD FIVE POINT SIX TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF FORTY SIX BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY U. S. X. CORPORATION THREE HUNDRED MILLION DOLLARS OF NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS SEVEN POINT TWOS AT NINETY NINE POINT SEVEN EIGHT SIX TO YIELD SEVEN POINT TWO THREE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE HUNDRED SIXTY BASIS POINTS ABOVE TREASURYS RATED B. A A THREE BY MOODY'S AND DOUBLE B. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED DIGITAL LINK CORPORATION INITIAL OFFERING OF TWO POINT SIX MILLION COMMON SHARES PRICED AT FOURTEEN DOLLARS APIECE THROUGH UNDERWRITERS LED BY BEAR STEARNS AND COMPANY AND WESSELS ARNOLD AND HENDERSON POST PROPERTIES INCORPORATED THREE MILLION COMMON SHARES PRICED AT TWENTY NINE DOLLARS AND FIFTY CENTS APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY WESTERN DIGITAL CORPORATION SIX POINT SIX MILLION COMMON SHARES PRICED AT ELEVEN DOLLARS AND SEVENTY FIVE CENTS APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY AND COMPANY QUEBEC ONE BILLION DOLLARS OF DEBENTURES DUE FEBRUARY NINTH TWO THOUSAND TWENTY FOUR PRICED AS SEVEN POINT ONE TWO FIVES AT NINETY NINE POINT FOUR EIGHT FIVE TO YIELD SEVEN POINT ONE SIX SEVEN PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF EIGHTY TWO BASIS POINTS ABOVE TREASURYS RATED SINGLE A ONE BY MOODY'S AND SINGLE A PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY FEDERAL HOME LOAN MORTGAGE CORPORATION FIVE HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INCORPORATED THE OFFERING SERIES G. ZERO TWO SEVEN IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION THIRTY YEAR SEVEN POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF EIGHT PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FORTY EIGHT MONTHS FEDERAL HOME LOAN MORTGAGE CORPORATION ONE HUNDRED FIFTY EIGHT MILLION DOLLARS OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH AND COMPANY THE OFFERING SERIES ONE THOUSAND SIX HUNDRED NINETY IS BACKED BY CLASS P. A. FROM THE AGENCY'S REMIC TRANCHE ONE THOUSAND SIX HUNDRED ELEVEN COUNCIL OF EUROPE RESETTLEMENT FUND SUPRANATIONAL ONE HUNDRED MILLION DOLLARS OF CORRIDOR FLOATING RATE EURONOTES DUE FEBRUARY NINETEEN NINETY FIVE AT ISSUE AND REOFFER PRICE PAR VIA SALOMON BROTHERS LIMITED PAYABLE QUARTERLY AT SIXTY BASIS POINTS OVER THREE MONTH LONDON INTERBANK OFFERED RATE WHEN LIBOR IS WITHIN ZERO PERCENT TO FOUR PERCENT IN FIRST SIX MONTHS AND ZERO PERCENT TO FOUR POINT TWO FIVE PERCENT IN SECOND SIX MONTHS FEES UNDISCLOSED DAIMLER BENZ NORTH AMERICA CORPORATION GERMAN PARENT SIXTY MILLION DOLLARS OF ZERO COUPON EUROBONDS DUE FEBRUARY SEVENTEENTH NINETEEN NINETY FIVE AT ISSUE PRICE NINETY NINE VIA J. P. MORGAN SECURITIES LIMITED REDEMPTION AMOUNT LINKED TO VALUE OF J. P. MORGAN EMERGING MARKETS BOND INDEX GUARANTOR DAIMLER BENZ A. G. FEES ZERO POINT TWO POINT DEUTSCHE PFANDBRIEF UND HYPOTHEKENBANK A. G. GERMANY ONE BILLION MARKS OF FLOATING RATE NOTES DUE FEBRUARY TWO THOUSAND THREE AT ISSUE PRICE NINETY NINE POINT NINE SEVEN VIA WESTDEUTSCHE LANDESBANK GIROZENTRALE PAYABLE SEMIANNUALLY AT SIX MONTH FRANKFURT INTERBANK OFFERED RATE FLAT FEES ZERO POINT TWO POINT LESS ZERO POINT ZERO TWO POINT FOR LEAD MANAGER GOLDMAN SACHS GROUP LIMITED U. S. ONE HUNDRED FIFTY MILLION CANADIAN DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY EIGHTEENTH TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE NINETY NINE POINT EIGHT VIA GOLDMAN SACHS INTERNATIONAL LIMITED PAYABLE QUARTERLY FLAT AT THREE MONTH BANKER'S ACCEPTANCE RATE FOR CANADIAN DOLLARS MINIMUM COUPON FIVE PERCENT FEES ZERO POINT THREE SEVEN FIVE RABOBANK NEDERLAND NETHERLANDS FIVE HUNDRED MILLION DUTCH GUILDERS OF FIVE POINT EIGHT SEVEN FIVE PERCENT EUROBONDS DUE MARCH FOURTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE REOFFERED ONE HUNDRED POINT TWO FIVE TO YIELD FIVE POINT EIGHT FOUR ONE PERCENT A MARGIN OF NINETEEN BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE RABOBANK NEDERLAND NETHERLANDS ONE HUNDRED MILLION DOLLARS OF FOREIGN EXCHANGE RATE LINKED RANGE FLOATING RATE EURONOTES DUE FEBRUARY TWENTY FOURTH NINETEEN NINETY FIVE AT ISSUE PRICE PAR VIA SAMUEL MONTAGU AND COMPANY PAYABLE QUARTERLY AT THREE MONTH DOLLAR LIBOR PLUS ZERO POINT TWO FIVE POINT MULTIPLIED BY NUMBER OF INTEREST ACCRUAL DAYS DIVIDED BY TOTAL NUMBER OF LONDON BUSINESS DAYS IN COUPON PERIOD INTEREST ACCRUES ON DAYS WHEN MARK DOLLAR EXCHANGE RATE ON TELERATE PAGE THREE THOUSAND SEVEN HUNDRED SIXTY FALLS BETWEEN OR IS EQUAL TO ONE POINT SIX TWO AND ONE POINT EIGHT EIGHT MARKS A DOLLAR FOR LAST TWO DAYS OF EACH COUPON PERIOD FOREIGN EXCHANGE RATE WILL BE SPOT RATE PREVAILING ON THIRD LAST DAY OF COUPON PERIOD FEES ZERO POINT ONE SNS GROEP N. V. NETHERLANDS FIVE HUNDRED MILLION DUTCH GUILDERS OF FIVE POINT FIVE PERCENT EUROBONDS DUE MARCH FIRST NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED POINT SEVEN FIVE VIA SNS BANK NEDERLAND N. V. REOFFERED AT ONE HUNDRED POINT OH FIVE TO YIELD FIVE POINT FOUR NINE PERCENT A MARGIN OF THIRTY FIVE BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE TORONTO DOMINION AUSTRALIA LIMITED CANADIAN PARENT ONE HUNDRED MILLION AUSTRALIAN DOLLARS OF FIVE POINT SEVEN FIVE PERCENT EUROBONDS DUE MARCH TWENTY EIGHTH NINETEEN NINETY SEVEN AT ISSUE PRICE ONE HUNDRED POINT NINE VIA HAMBROS BANK LIMITED BONDS YIELD FIVE POINT NINE THREE PERCENT AT NINETY NINE POINT FIVE TWO FIVE CO MANAGERS' BREAK EVEN PRICE A MARGIN OF TWENTY EIGHT BASIS POINTS OVER COMPARABLE AUSTRALIAN GOVERNMENT BOND GUARANTOR TORONTO DOMINION BANK FEES ONE POINT FIVE POINTS LESS ZERO POINT ONE TWO FIVE POINT FOR LEAD MANAGER GERTRUDE HIMMELFARB OBVIOUSLY HAS EXPERT KNOWLEDGE OF THE VICTORIAN PERIOD AND DID A GOOD JOB OF PROVING THAT THE FEMINIST SCHOOL OF THOUGHT DOES NOT SHARE ANYTHING WITH THE REAL VICTORIAN AGE QUOTE NEW VICTORIANS' DON'T EARN THAT LABEL QUOTE EDITORIAL PAGE JANUARY TWELFTH HER INTERPRETATIONS OF CATHARINE MACKINNON'S WORK AND BELIEFS HOWEVER ARE INCORRECT AND MISLEADING HER DISCUSSION OF THE MORALITY FACTOR IN MS. MACKINNON'S FEMINISM ILLUSTRATES THE MISUNDERSTANDING OF AND SUBSEQUENT ATTACK ON MS. MACKINNON'S WRITINGS BY THE PRESS AND MAINSTREAM LIBERALS FIRST SHE IS WRONG WHEN SHE STATES THAT THIS FEMINISM PREACHES MORALITY BECAUSE IT ABSOLUTELY DOES NOT THE THINGS MS. MACKINNON AND MYSELF OBJECT TO PORNOGRAPHY HATE SPEECH SEXUAL HARASSMENT AND RAPE ARE ODIOUS NOT BECAUSE THEY ARE IMMORAL BUT BECAUSE THEY DEGRADE HUMILIATE OPPRESS AND SILENCE WOMEN MORALITY HAS ABSOLUTELY NO PLACE IN THIS SCHOOL OF THOUGHT IT IS COMPLETELY REMOVED FROM THE SUBJECT MATTER BECAUSE FEMINISM SPROUTS NOT FROM IMMORALITY BUT FROM INJUSTICE PROVING THAT SHE HAS NOT THOROUGHLY READ MS. MACKINNON MS. HIMMELFARB CLAIMS THAT THEY MACKINNON'S FEMINISTS DO NOT PROPOSE TO DO ANYTHING ABOUT THE KINDS OF CRIME VIOLENT IRRATIONAL REPEATED AND REPEATEDLY UNPUBLISHED CRIME THAT IS THE MOST PRESSING CONCERN OF MOST CITIZENS THEY PROPOSE ONLY TO PASS NEW LEGISLATION TO PUNISH SPEECH OR CONDUCT NORMALLY REGARDED AS UNCIVIL RATHER THAN ILLEGAL THIS IS UNTRUE IN FACT THE VERY ACTS OF PROHIBITION SHE DISCUSSED EARLIER IN THE ARTICLE ARE THE PROPOSED DETERRENTS TO THOSE CRIMES PORNOGRAPHY HAS BEEN SHOWN TO INDUCE SEXUALLY VIOLENT BEHAVIOR IN IRRATIONAL INDIVIDUALS WITH PERVERTED SEXUAL FANTASIES THESE INDIVIDUALS WHO ARE NOT FEW ARE A THREAT AND A DANGER TO EVERY SINGLE WOMAN AND CHILD ADDITIONALLY SEXUAL CRIMES SUCH AS CHILD MOLESTATION RAPE AND STREET HARASSMENT ARE PERHAPS THE MOST REPEATED AND REPEATEDLY UNPUNISHED CRIMES IN OUR SOCIETY THESE CRIMES ARE CAUSED BY THE VERY SEXUAL EXPLOITATION DEGRADATION HUMILIATION DEHUMANIZATION AND DOMINATION OF WOMEN THAT IS PORTRAYED IN PORNOGRAPHY ANNOUNCED IN HATE SPEECH REVEALED IN SEXUAL HARASSMENT AND MANIFESTED IN RAPE THEREFORE THIS FEMINIST SCHOOL OF THOUGHT IS FIGHTING TO PROTECT WOMEN FROM VIOLENT CRIMES NOT DICTATE MORALITY TO MEN OR WOMEN THE VICTORIAN AGE WAS ONE OF THE MOST OPPRESSIVE AND TORMENTING PERIODS OF WOMEN'S HISTORY I FIND IT LUDICROUS THAT A WOMAN IN NINETEEN NINETY FOUR CAN PORTRAY VICTORIAN WOMEN AS HAVING A MORE FAVORABLE OUTLOOK THAN MS. MACKINNON'S FEMINISTS TWENTY NINE OF THIRTY SIX SERIAL MURDERERS INTERVIEWED BY THE F. B. I. CONFESSED THAT PORNOGRAPHY HAD A NEGATIVE IMPACT ON THEIR THINKING AND BEHAVIOR THE LOS ANGELES POLICE DEPARTMENT POINTS OUT THAT IN THE MORE THAN FORTY CHILD SEX ABUSE CASES IT INVESTIGATED BETWEEN OCTOBER NINETEEN SEVENTY SIX AND MARCH NINETEEN SEVENTY SEVEN PORNOGRAPHIC PHOTOS WERE FOUND IN EVERY CASE ACCORDING TO POLICE VICE SQUADS ACROSS THE NATION SEVENTY SEVEN PERCENT OF MOLESTERS OF BOYS AND EIGHTY SEVEN PERCENT OF MOLESTERS OF GIRLS CONFESSED TO IMITATING THE SEXUAL BEHAVIOR DEPICTED IN PORNOGRAPHY A STUDY BY CANADIAN PSYCHOLOGIST DOCTOR WILLIAM MARSHALL OF RAPISTS IN CANADIAN PRISONS FOUND THAT VARIOUS FORMS OF PORNOGRAPHIC FANTASIES MAY LEAD TO CRIME PORNOGRAPHY REDUCES SEX TO A PLAYTHING HUMAN BEINGS TO MERE BODIES AND HUMAN BODIES TO SEX MACHINES IT DENIGRATES THE SACREDNESS OF SEX MARRIAGE FAMILY AND HUMAN LIFE IT TRANSFORMS SEX FROM A SACRED UNION OF LIFE AND LOVE TO A TOOL OF VOYEURISTIC GRATIFICATION CERTAINLY PORNOGRAPHY HELPS CREATE A MORAL AND SOCIAL CLIMATE CONDUCIVE TO SEXUAL ABUSE AND EXPLOITATION IF THE GREAT WORKS OF THE MORAL AND INTELLECTUAL GIANTS OF CIVILIZATION CAN EDUCATE ENLIGHTEN AND INSPIRE THEN PORNOGRAPHIC WORKS CAN CORRUPT BY GLAMORIZING AND ENCOURAGING PERNICIOUS IDEAS AND BEHAVIOR IDEAS DO HAVE CONSEQUENCES IF THE MUTUAL FUND EXPLOSION OF THE PAST DECADE IS THE SWEET DREAM OF DEMOCRATIC CAPITALISM INVOLVING TENS OF MILLIONS OF ORDINARY PEOPLE AND TWO TRILLION DOLLARS IN ACTIVE INVESTMENT THEN THE NIGHTMARE HAS ALWAYS BEEN A SUDDEN SOUR ENDING THIS MIGHT COME FROM A STOCK MARKET PANIC PERHAPS PROMPTED BY SCANDAL OR FINANCIAL IMPLOSION AT A PRIVATELY HELD GIANT SUCH AS FIDELITY INVESTMENTS THE INDUSTRY LEADER FIDELITY HAS MORE THAN TWO HUNDRED SIXTY BILLION DOLLARS UNDER MANAGEMENT A GOOD TWENTY PERCENT GREATER THAN THE ASSETS OF CITICORP MANY FOLKS YOURS TRULY INCLUDED HAVE THE BULK OF THEIR PAPER WEALTH STORED BEHIND FIDELITY'S OPAQUE CORPORATE WALLS TRUST IS THE COIN OF THE REALM BECAUSE OF ITS SIZE AND AGGRESSIVE CULTURE THE BOSTON BASED FIRM IS WHERE ATTENTION HAS TURNED SINCE TROUBLE SURFACED AT INVESCO GROUP IN DENVER OVER THE PERSONAL STAKES OF A STAR FUND MANAGER THE EASIEST DEFENSE AGAINST SUSPICION OF SELF DEALING IS A GOOD TRACK RECORD WITH CLIENTS' MONEY AND FIDELITY HAS LITTLE WORRY THERE INDEED THE WHOLE INDUSTRY'S INTENSE AND PUBLIC PERFORMANCE BATTLE IS PLENTY OF REASON FOR MANAGERS TO LOOK AFTER INVESTOR YIELDS FOREMOST BUT THE INDUCEMENT IS NOT AIRTIGHT IT IS EASY TO CONSTRUCT A SCENARIO IN WHICH A MONEY MANAGER HAS A LOT MORE TO GAIN FROM HER OWN HOLDING IN A SPECULATIVE STOCK THAN SHE RISKS FROM NOT MAXIMIZING THE FUND'S GAINS IN THAT SAME INVESTMENT GIVEN WHAT A TINY SHARE IT LIKELY REPRESENTS IN THE POOL'S PORTFOLIO IN FACT QUOTE THE POTENTIAL FOR ABUSE IS HIGH QUOTE SAYS GREGG JARRELL A FORMER CHIEF ECONOMIST FOR THE SECURITIES AND EXCHANGE COMMISSION MR. JARRELL IS NOT ONE TO HYPE MARKET IMPERFECTIONS HE WAS A DEREGULATION SOLDIER FOR RONALD REAGAN BUT THE WALL STREET DUST HAS BEEN SO THICK HE CONFESSES THAT I WAS SURPRISED TO LEARN TWO YEARS AGO THAT MUTUAL FUND MANAGERS AND ANALYSTS FOR BROKERAGE FIRMS WERE FAIRLY UNRESTRICTED IN THEIR ABILITY TO TRADE FOR INDIVIDUAL ACCOUNTS THE REVELATION WASN'T REASSURING ANALYSTS IN PARTICULAR ARE FORGIVEN A CERTAIN ACCESS TO INSIDER INFORMATION BECAUSE THEY TRANSMIT KNOWLEDGE TO THE BROAD MARKET MR. JARRELL SAYS BUT THE PROSPECT OF THEIR CAPTURING THE RETURNS THEMSELVES BLURS ANY LEGAL DISTINCTION BETWEEN THEM AND THE CORPORATE OFFICIALS THEY GLEAN DETAILS FROM WHY SHOULD ONE BE ABLE TO TRADE AND NOT THE OTHER MOREOVER THE HOST OF TIES BETWEEN RESEARCH OR TRADING SERVICES AND FUND MANAGERS THE SO CALLED SOFT DOLLAR MARKET OFFERS ADDITIONAL POTENTIAL FOR PRIVATE ENRICHMENT EVEN A COMPANY AS GARGANTUAN AS FIDELITY WITH ITS OWN RESEARCH AND TRADING OPERATIONS LETS PORTFOLIO CHIEFS GO OUTSIDE FOR SUCH SERVICES AN EFFICIENT MARKETS PURIST MIGHT SUGGEST LAISSEZ FAIRE AND CAVEAT EMPTOR THE MORE TRADING THE FASTER THE BETTER LET SECURITIES HOUSES ENFORCE THEIR OWN STANDARDS AS DESIRED WITH CUSTOMERS HAVING RECOURSE TO ALLEGE FRAUD THAT'S GOOD THEORY BUT WITH RETAIL INVESTING ESPECIALLY IN MUTUAL FUNDS SO GROUNDED IN EASY CONFIDENCE PARTICIPANTS MAY SHARE AN INTEREST IN ENFORCING A QUEENSBERRY CODE THE BLOSSOMING OPPORTUNITIES FOR UNFAIR ACTIVITY LEAVE EVEN MR. JARRELL ASKING FOR IMPROVED OVERSIGHT ABSENT TECHNOLOGICAL LEAPS IN SCREENING THAT WOULD MEAN MORE PERSONNEL AT THE S. E. C. THE AGENCY'S REGULATORY STAFF COUNT HAS GROWN THIRTY SIX PERCENT SINCE NINETEEN EIGHTY FIVE AND ITS SPENDING BY FAR MORE THAN THAT ACCORDING TO THE CENTER FOR THE STUDY OF AMERICAN BUSINESS BUT BOLSTERING A BUREAUCRACY OVERSEEN BY A JUDICIOUS COMMISSION WOULD BEAT SEEING NEW LEGISLATION COME OUT OF THE HOUSE COMMERCE SUBCOMMITTEE CHAIRED BY THE HYPERACTIVE ED MARKEY OF MASSACHUSETTS WHO WAS QUICK TO LEAP ON THE ISSUE OF TRADING BY FUND MANAGERS NO ONE WANTS TO BE CAUGHT TAKING FINANCIAL SYSTEM RISK TOO LIGHTLY NOT AFTER WHAT HAPPENED IN THE BANK AND THRIFT INDUSTRIES A DECADE AGO BUT THAT WAS A CASE OF BAD LAW AS WELL AS LAX OVERSIGHT BY CONTRAST THE SECURITIES INDUSTRY HAS FUNCTIONED REMARKABLY WELL NOTWITHSTANDING ITS CELEBRATED PROSECUTIONS ONE COULD ARGUE THAT IT IS MORE HONEST THAN EVER GIVEN THE HUGE GROWTH IN TRADING VOLUME FOR ALL HIS CURRENT APPREHENSION MR. JARRELL OBSERVES IF YOU WANTED TO DESCRIBE A CLEAN PRO CONSUMER WELL OPERATED ETHICALLY PRISTINE INDUSTRY AND REALIZING OF COURSE IT WILL BE RUN BY IMPERFECT HUMAN BEINGS PROBABLY THE MUTUAL FUND BUSINESS OVER THE LAST FIFTEEN YEARS WOULD BE PRETTY CLOSE TO WHAT YOU'D DESCRIBE S. E. C. COMMISSIONER CARTER BEESE JUNIOR A BUSH APPOINTEE WHOSE TERM RUNS TO NINETEEN NINETY SIX SEEMS TO SECOND THAT MUTUAL FUND COMPLEXES LIVE AND DIE ON THEIR STANDING HE SAYS AND ARE MOTIVATED TO SELF POLICE THERE'S NO GOVERNMENT GUARANTEE AGAINST LOSS HIS AGENCY WILL ACT WHEN SOMEBODY IS STEPPING OVER THE LINE BUT WHAT YOU'RE SEEING FROM CONGRESS IS A PERCEPTION BASED ON SELECTED INSTANCES IN THE PRESS TO IMPUTE DECEIT IN THE EXECUTION OF PERSONAL TRADES QUOTE ASSUMES SOMEBODY WHO HAS LARCENY IN HIS HEART QUOTE FOR MR. BEESE A FORMER INVESTMENT BANKER THE BEST INNOCULATION AGAINST ABUSE IS DISCLOSURE IN THIS CASE OF THE POLICIES OF THE MUTUAL FUND HOUSES ON STAFF TRADING THE S. E. C. HAS BEEN REQUIRING MORE INFORMATION GENERALLY FOR ARMCHAIR INVESTORS NONE OF THIS COMES FREE BUT INFLEXIBLE RULEMAKING WOULD COST FAR MORE DISCLOSURE IS THE RUB IN ANOTHER CONTROVERSY DOGGING THE MUTUAL FUNDS THEIR SALE IN AND BY BANKS SURVEYS INDICATE TO THE SATISFACTION OF MR. BEESE AS WELL AS ACTIVIST LEGISLATORS THAT MOST PEOPLE WHO INVEST IN A FUND THROUGH THEIR BANK THINK THEIR MONEY IS PROTECTED AGAINST LOSS IN THE SAME WAY A DEPOSIT WOULD BE THIS HAS PROMPTED CALLS TO RESTRAIN BANKS FROM OFFERING MUTUAL FUNDS AS CONVENIENTLY AS BUYER AND SELLER MIGHT LIKE SOME WOULD PROHIBIT THIS INVESTMENT FROM TAKING PLACE WITHIN A BANK BRANCH OR AT AN AUTOMATIC TELLER THAT ULTIMATELY WILL BE THE CALL OF THE BANKING REGULATORS BUT FOR THE S. E. C.'S PART MR. BEESE IS CHAMPIONING TRUTH IN PACKAGING CLEARLY DISTINGUISHING A SAVINGS ACCOUNT FROM AN EQUITY OR BOND FUND ISN'T TOO MUCH TO ASK MR. BEESE ALSO QUESTIONS A BANK ATTACHING ITS NAME TO THE FUNDS IT SELLS BUT HE IS NOT OPPOSED TO THE PENDING ACQUISITION OF THE DREYFUS MUTUAL FUND GROUP BY MELLON BANK TO HIM IF BANKS ARE TO BE INVOLVED IN FUNDS IT SHOULDN'T MATTER WHETHER THEY PURCHASE THEM OR ORIGINATE THEM THAT MAKES SENSE ANY DRAMATIC REVERSAL IN THE MARKETS WOULD SHARPLY INCREASE THE CHANCE OF POLITICAL MISSTEPS IN THE MUTUAL FUND AREA BARRING THAT HOWEVER THE MOST SIGNIFICANT QUESTIONS ABOUT THIS BRAVE NEW WORLD OF RETAIL INVESTING LOOK BEYOND THE IMMEDIATE WORRIES THEY CONCERN AN AREA OF PARTICULAR INTEREST TO CARTER BEESE THE RELATIONSHIP TO RETIREMENT PLANNING MORE ON THAT TO FOLLOW RYAN BECK AND COMPANY WEST ORANGE N. J. ANNOUNCED A SPECIAL CASH DIVIDEND OF EIGHTEEN CENTS A SHARE AND A QUARTERLY CASH DIVIDEND OF ONE CENT A SHARE PAYABLE FEBRUARY EIGHTEENTH TO HOLDERS OF RECORD FEBRUARY TENTH THE INVESTMENT BANKING FIRM ALSO SAID FOURTH QUARTER NET INCOME WAS SIX HUNDRED TWENTY SIX THOUSAND DOLLARS OR EIGHTEEN CENTS A SHARE DOWN FORTY THREE PERCENT FROM A YEAR EARLIER ONE POINT ONE MILLION DOLLARS OR THIRTY ONE CENTS A SHARE REVENUE SLID THREE POINT FOUR PERCENT TO SIX POINT SIX MILLION DOLLARS FROM SIX POINT NINE MILLION DOLLARS FOR THE YEAR EARNINGS WERE FOUR POINT ONE MILLION DOLLARS OR ONE DOLLAR AND FIFTEEN CENTS A SHARE UP FROM A YEAR EARLIER THREE POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND TWO CENTS A SHARE REVENUE ROSE SEVENTEEN PERCENT TO TWENTY EIGHT POINT SIX MILLION DOLLARS FIAT COMPANY PLUNGED INTO THE RED LAST YEAR FOR THE FIRST TIME SINCE NINETEEN SEVENTY NINE WITH A LOSS OF ABOUT ONE POINT EIGHT TRILLION LIRE ONE POINT OH SIX BILLION DOLLARS CHAIRMAN GIOVANNI AGNELLI SAID IN A LETTER TO SHAREHOLDERS THE ITALIAN AUTO MAKER ALSO SAID IT PLANS TO ISSUE A ONE TRILLION LIRE TEN YEAR FIXED RATE BOND COORDINATED BY MILAN MERCHANT BANK MEDIOBANCA THE ISSUE COMES ON THE HEELS OF A FIVE TRILLION LIRE CAPITAL INCREASE ANNOUNCED IN SEPTEMBER WHICH IS INTENDED TO UPDATE ITS AGING MODEL LINE AND PAY DOWN DEBT ANALYSTS SAID THE PRELIMINARY RESULT IS IN LINE WITH MOST EXPECTATIONS AND IS BETTER THAN THE WORST PREDICTIONS OF A NINETEEN NINETY THREE LOSS OF AS MUCH AS TWO POINT ONE TRILLION LIRE FIAT REPORTED NET INCOME OF FIVE HUNDRED FIFTY ONE BILLION LIRE IN NINETEEN NINETY TWO WHILE MR. AGNELLI HIMSELF STOPPED SHORT OF PREDICTING A TURNAROUND IN NINETEEN NINETY FOUR HE SAID DEMAND SHOULD PICK UP WARNING THAT ANY RECOVERY WOULD BE SLOW QUOTE WHAT'S FOR CERTAIN IS THAT NINETEEN NINETY THREE WAS THE BOTTOM FOR FIAT AND WE EXPECT TO SEE A STRONG IMPROVEMENT IN NINETEEN NINETY FOUR EVEN IF A BREAK EVEN TARGET WILL BE VERY DIFFICULT QUOTE SAID FAUSTO GALLEOTTI DIRECTOR OF RESEARCH AT PASFIN SECURITIES IN MILAN CONSOLIDATED SALES DECLINED ONE POINT NINE PERCENT TO FIFTY THREE POINT SEVEN TRILLION LIRE FROM FIFTY FOUR POINT SIX OH SEVEN TRILLION LIRE IN NINETEEN NINETY TWO SALES FIGURES WERE ADJUSTED TO TAKE INTO ACCOUNT FIAT'S SALE OF A CONTROLLING STAKE IN THE RINASCENTE COMPANY DEPARTMENT STORE CHAIN IN OCTOBER TO AGNELLI HOLDING COMPANY IFIL FINANZIARIA DI PARTECIPAZIONI COMPANY FIAT BLAMED THE RESULTS ON THE PROLONGED CRISIS IN THE EUROPEAN AND ITALIAN CAR MARKETS CAR SALES DECLINED FIFTEEN PERCENT IN EUROPE LAST YEAR AND TWENTY PERCENT IN ITALY WHILE THE MARKET FOR INDUSTRIAL VEHICLES FELL FOR THE FOURTH CONSECUTIVE YEAR BY TWENTY TWO PERCENT IN EUROPE AS A RESULT FIAT'S IVECO TRUCK SUBSIDIARY SUFFERED A TWENTY ONE PERCENT DECLINE IN SALES MR. AGNELLI SAID AS PART OF ONGOING RESTRUCTURING EFFORTS FIAT IS IN THE MIDST OF INTENSE LABOR NEGOTIATIONS TO LAY OFF FIVE THOUSAND EMPLOYEES PERMANENTLY AND SEVEN THOUSAND TO TEN THOUSAND ON A TEMPORARY BASIS THE CAR DIVISION WHICH HAS BANKED ITS FUTURE ON UPDATING ITS MODEL LIST INTRODUCED ITS NEW PUNTO CITY CAR IN SEPTEMBER AND A SPORTS COUPE WILL FOLLOW FIAT AUTO'S CHIEF EXECUTIVE OFFICER PAOLO CANTARELLA SAID THE COMPANY EXPECTS TO SELL FIVE HUNDRED THOUSAND PUNTOS IN EUROPE IN NINETEEN NINETY FOUR THEIR STRATEGY CALLED FOR NEW MODELS AND IT REMAINS TO BE SEEN WHETHER THEY'RE GOING TO BE SUCCESSFUL SAID ENRICO PONZONE ITALY ANALYST WITH KLEINWORT BENSON IN LONDON THEIR TRACK RECORD IN THAT AREA IS NOT VERY GOOD RICHARD F. HAWKINS FORTY ONE YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER EFFECTIVE TODAY AS CHIEF EXECUTIVE HE SUCCEEDS ROBERT F. RADICAN FIFTY SEVEN WHO CONTINUES AS CHAIRMAN THE POST OF CHIEF OPERATING OFFICER WILL BE RELINQUISHED AND WON'T BE FILLED MR. HAWKINS SAID THE COMPUTER CONSULTING SERVICES CONCERN ALSO SAID IT WILL CHANGE ITS NAME TO NETWORK SIX INCORPORATED EFFECTIVE TODAY THE COMPANY ALSO NAMED JAMES J. TRAINOR SIXTY ONE A DIRECTOR EXPANDING THE BOARD TO SIX MR. TRAINOR IS A CONSULTANT WORKING OUT OF WASHINGTON THE COMPANY SAID JOHN A. PORTER FIFTY YEARS OLD WAS ELECTED TO THE BOARD OF THIS MAKER OF PLASTIC SPECIALTY CHEMICAL AND POLYMER PRODUCTS THE ELECTION INCREASES THE NUMBER OF DIRECTORS TO EIGHT MR. PORTER WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TELEPHONE MANAGEMENT CORPORATION BEFORE IT WAS ACQUIRED BY L. D. D. S. COMMUNICATIONS INCORPORATED IN NINETEEN EIGHTY EIGHT CURRENTLY HE IS VICE CHAIRMAN OF THE SUCCESSOR COMPANY OF THE THREE WAY MERGER OF L. D. D. S. COMMUNICATIONS RESURGENS COMMUNICATIONS GROUP INCORPORATED AND METROMEDIA COMMUNICATIONS CORPORATION TO FORM L. D. D. S. METROMEDIA CORPORATION DAVID K. KLOTZ FORTY FOUR YEARS OLD SOLE PROPRIETOR OF DIALOGUE INTERNATIONAL A SALES AND MARKETING CONSULTING CONCERN WAS ELECTED A DIRECTOR OF THIS PROVIDER OF DATA PROCESSING ACCOUNTING AND RECORDKEEPING SERVICES FOR FINANCIAL INSTITUTIONS HE SUCCEEDS NORMAN SHALLAN WHO DIED IN JULY ALSO JAMES HOWLEY WHO SERVED A SPECIAL ONE YEAR TERM ON THE COMPANY'S BOARD LAST YEAR WASN'T RENOMINATED THIS REDUCES THE BOARD TO FIVE MEMBERS H. MICHAEL DODGE FIFTY YEARS OLD VICE PRESIDENT AND GENERAL MANAGER OF NORTH AMERICAN OPERATIONS FOR THE COMPANY'S AUTOMOTIVE SEATING BUSINESS WAS NAMED A CORPORATE VICE PRESIDENT OF THIS MAKER OF BUILDING CONTROLS BATTERIES AND AUTO PRODUCTS AS EXPECTED FOUR OF THE WORLD'S LARGEST RECORD COMPANIES ANNOUNCED PLANS TO LAUNCH A NEW MUSIC VIDEO CABLE CHANNEL THAT COULD BE FORMIDABLE COMPETITION FOR VIACOM INCORPORATED'S M. T. V. NETWORKS THE FOUR COMPANIES PLAN TO LAUNCH THEIR TWENTY FOUR HOUR MUSIC CHANNEL IN THE FOURTH QUARTER OF NINETEEN NINETY FOUR IN THE U. S. AND PUERTO RICO THE PARTNERS SAID THE FOUR MUSIC COMPANIES INVOLVED ARE TIME WARNER INCORPORATED'S WARNER MUSIC GROUP SONY CORPORATION'S SONY MUSIC E. M. I. MUSIC A UNIT OF THORN E. M. I. P. L. C. AND POLYGRAM HOLDING INCORPORATED EIGHTY PERCENT OWNED BY PHILIPS ELECTRONICS N. V. A FIFTH PARTNER IN THE PROPOSED CHANNEL IS TICKETMASTER CORPORATION FEW DETAILS ABOUT THE NEW CABLE VENTURE WERE GIVEN IN A BRIEF PRESS RELEASE THE MUSIC COMPANIES SAID THEY PLAN TO RECRUIT ADDITIONAL PARTNERS INCLUDING CABLE TELEVISION OPERATORS THERE HAD BEEN SPECULATION IN THE MUSIC INDUSTRY THAT THE MUSIC GIANTS PLANNED AN EXCLUSIVE SERVICE THAT WOULD WITHHOLD THEIR VIDEOS FROM COMPETING SERVICES SUCH AS M. T. V. BUT YESTERDAY'S STATEMENT SPECIFIES THAT THE RECORD COMPANIES QUOTE WILL CONTINUE TO LICENSE THEIR MUSIC VIDEOS TO OTHER ENTITIES QUOTE AND SAID THAT THEY WILL PLAY VIDEOS FROM MUSIC COMPANIES THAT AREN'T PARTNERS NONE OF THE RECORD COMPANIES INVOLVED WOULD PROVIDE DETAILS ABOUT HOW THE CHANNEL WILL LOOK AND SOUND AND WHO WILL RUN THE PROGRAMMING ONE EXECUTIVE CLOSE TO THE VENTURE SAID THE PARTNERSHIP DEAL WAS SIGNED FRIDAY AND THAT NOBODY HAS BEEN HIRED YET TO BEGIN CREATING THE PROGRAMMING ALTHOUGH THE RECORD COMPANIES CLEARLY HAVE THE DEEP POCKETS TO LAUNCH A NEW MUSIC CHANNEL THERE ARE MANY OBSTACLES AHEAD M. T. V. WHILE THE BIGGEST COMPETITOR ISN'T THE ONLY ONE MOST CABLE SERVICES CARRY HALF A DOZEN MUSIC CHANNELS BUT FEW ARE BELIEVED PROFITABLE LES GARLAND PRESIDENT OF MIAMI BASED VIDEO JUKEBOX NETWORK SAYS HIS COMPANY'S VIDEO CHANNEL REACHES EIGHTEEN POINT FIVE MILLION HOMES AFTER FOUR YEARS BUT IS STILL UNPROFITABLE AT THE SAME TIME COMPETITION IS ESCALATING AND OTHER NEW MUSIC CHANNELS ARE IN THE WORKS INCLUDING SEVERAL FROM M. T. V. ANOTHER MAJOR RECORD COMPANY BERTELSMANN MUSIC GROUP HAS SAID IT WILL LAUNCH A MUSIC CHANNEL THIS YEAR WITH CABLE GIANT TELE COMMUNICATIONS INCORPORATED EVEN TICKETMASTER ONE OF THE PARTNERS WITH THE RECORD COMPANIES IS SAID TO BE CLOSE TO ANNOUNCING A MUSIC CHANNEL THAT WILL SELL TICKETS AND CONCERT MERCHANDISE THERE IS ALSO A POTENTIAL MAJOR CREDIBILITY PROBLEM FOR THE RECORD COMPANIES HOW WILL THE BIGGEST PURCHASERS OF MUSIC YOUNG PEOPLE IN THEIR TEENS AND TWENTIES REACT TO A NEW CHANNEL THAT IS OWNED BY THE MAJOR RECORD COMPANIES ALTHOUGH INSIDERS AT THE NEW VENTURE SAY THE PARTNERSHIP ENACTED STRICT RULES THAT THE PROGRAMMING BE INDEPENDENT OF PRESSURE FROM OWNERS THE PERCEPTION OF A CAPTIVE SERVICE MAY BE HARD TO SHAKE LADD FURNITURE INCORPORATED SAID IT COMPLETED ITS ACQUISITION OF PILLIOD CABINET COMPANY THE TRANSACTION VALUED AT FIFTY FOUR MILLION DOLLARS INVOLVED A TWENTY THREE POINT NINE MILLION DOLLAR CASH PAYMENT FOR ALL STOCK OUTSTANDING OF PILLIOD'S PARENT PILLIOD HOLDING COMPANY LADD SAID IN A NEWS RELEASE THE DEAL ALSO INVOLVED THE REPAYMENT OF ABOUT TWENTY NINE POINT NINE MILLION DOLLARS OF PILLIOD DEBT AND THE ASSUMPTION OF CERTAIN PILLIOD LIABILITIES PILLIOD IS A FURNITURE MAKER WITH MORE THAN EIGHTY MILLION DOLLARS IN ANNUAL SALES THE PURCHASE AGREEMENT WAS ANNOUNCED IN DECEMBER BRITISH PUBLISHING COMPANY UNITED NEWSPAPERS P. L. C. SAID ITS UNITED ADVERTISING PERIODICALS UNIT FINALIZED THE ACQUISITION OF HARMON PUBLISHING COMPANY FOR ONE HUNDRED MILLION DOLLARS HARMON A UNIT OF CLOSELY HELD HARTZ GROUP INCORPORATED OF NEW YORK PUBLISHES TWO HUNDRED SIXTEEN LOCAL REAL ESTATE AND AUTOMOTIVE ADVERTISING PERIODICALS IN THIRTY ONE STATES UNITED ADVERTISING IN DALLAS ALSO PUBLISHES ADVERTISING PERIODICALS BRUCE L. DOWNEY WAS NAMED CHIEF EXECUTIVE OFFICER AND CHAIRMAN SUCCEEDING THE GENERIC DRUG COMPANY'S FOUNDER EDWIN A. COHEN WHO RETIRES FEBRUARY TWENTY FOURTH MR. DOWNEY FORTY SIX WILL CONTINUE AS PRESIDENT A POST HE ASSUMED LAST YEAR MR. COHEN SAID HE HAS CONSIDERED CHANGING HIS ROLE AT THE COMPANY FOR SOME TIME AND WILL NOW DO SO BECAUSE OF THE MANAGEMENT TEAM IN PLACE MR. COHEN SIXTY ONE CONTINUES AS A CONSULTANT AND VICE CHAIRMAN WHITMIRE DISTRIBUTION CORPORATION SAID IT SIGNED AN AGREEMENT WITH KMART CORPORATION UNDER WHICH WHITMIRE WILL EXPAND ITS ROLE AS A SUPPLIER OF PRESCRIPTION AND OVER THE COUNTER PHARMACEUTICAL PRODUCTS TO MOST OF KMART'S ONE THOUSAND SIX HUNDRED FIFTY PHARMACIES IN THE U. S. WHITMIRE RECENTLY AGREED TO BE ACQUIRED BY CARDINAL DISTRIBUTION INCORPORATED FOR ABOUT THREE HUNDRED THREE MILLION DOLLARS IN STOCK WHITMIRE IS OWNED BY MEMBERS OF MANAGEMENT APOLLO INVESTMENT FUND L. P. AND CHEMICAL VENTURE PARTNERS AN AFFILIATE OF CHEMICAL BANKING CORPORATION IF A TRIP TO CUBA HAS CROSSED YOUR MIND THINK AGAIN WHILE IT'S LEGAL TO VISIT MOST AMERICANS ARE BARRED FROM SPENDING MONEY THERE ON BUSINESS OR TOURISM THE RESTRICTION PART OF THE U. S. ECONOMIC EMBARGO ON CUBA EXISTS DESPITE THAT COUNTRY'S RECENT EASING OF TRAVEL RESTRICTIONS FOR CUBANS OR CUBAN AMERICANS LIVING IN THE U. S. VIOLATORS FACE FINES OF UP TO FIFTY THOUSAND DOLLARS AND TEN YEARS IN PRISON THE TREASURY DEPARTMENT ALLOWS A FEW EXCEPTIONS THOUGH THE BIGGEST IS CUBAN AMERICANS VISITING CLOSE RELATIVES OTHERS INCLUDE JOURNALISTS SCHOLARS GOVERNMENT OFFICIALS AMERICANS WHOSE TRIPS ARE FULLY FUNDED BY NON AMERICAN INTERESTS AND OTHERS LICENSED FOR THINGS LIKE HUMANITARIAN MISSIONS TO ENSURE COMPLIANCE TREASURY SAYS IT AUDITS TRAVEL AGENTS AND AIRLINE CHARTER OPERATORS THAT ARRANGE TRAVEL TO CUBA TRAVEL AGENTS REPORT THAT SOME AMERICANS FLY TO CUBA VIA CANADA OR THE CARIBBEAN OR SAIL THERE ON PRIVATE YACHTS CUBAN IMMIGRATION OFFICIALS NORMALLY DON'T STAMP THEIR PASSPORTS SO CHANCES OF BEING CAUGHT ARE MINIMAL FROM NINETEEN EIGHTY SIX UNTIL LAST FALL HAVANA LIMITED CUBAN AMERICAN VISITORS TO ONE HUNDRED PER WEEK THE WAITING LIST WAS THIRTY THOUSAND REPORTS ONE AIRLINE OFFICIAL TODAY THERE ARE NO LIMITS AND THE REQUIREMENT THAT VISITORS BUY HOTEL PACKAGES HAS BEEN DROPPED HAVANA ALSO AUTHORIZED AN INCREASE IN CHARTER FLIGHTS FROM MIAMI NOW THERE ARE TEN A WEEK AND QUOTE EVERYTHING IS FULL QUOTE SAYS VIVIAN MANNERUD PRESIDENT OF AIRLINE BROKERS A CHARTERER MARAZUL TOURS WHICH FLIES TO HAVANA AND SELLS TRAVEL PACKAGES SAYS ITS THRICE WEEKLY CHARTER FLIGHTS ARE JAMMED BOB GUILD A PROGRAM DIRECTOR SAYS THE NUMBER OF NON CUBAN VISITORS WHO FALL UNDER THE TREASURY'S EXEMPTIONS IS UP AS WELL MARAZUL HANDLED ONE THOUSAND SIX HUNDRED SUCH VISITORS IN NINETEEN NINETY TWO AND TWO THOUSAND FIVE HUNDRED LAST YEAR HE SAYS TRAVELERS GOING ABROAD CAN GET INITIAL ADVICE ON VACCINATIONS THEY'LL NEED FROM TRAVEL AGENTS AND AIRLINE RESERVATION CLERKS BUT PRETRAVEL CARE MAY BE MORE DIFFICULT TO OBTAIN THERE'S NO CERTIFICATION PROCESS FOR TRAVEL MEDICINE PHYSICIANS IN THE U. S. SAYS LEONARD MARCUS A NEWTON MASSACHUSETTS DOCTOR IN THE FIELD WHICH SPECIALIZES IN PRETRAVEL VACCINATIONS AND TREATMENT OF EXOTIC DISEASES BUT THE AMERICAN SOCIETY FOR TROPICAL MEDICINE AND HYGIENE OF WHICH HE IS A MEMBER IS PREPARING A CERTIFICATION EXAM AS WELL AS CURRICULA FOR MEDICAL SCHOOLS HE SAYS AMERICAN EXPRESS AND CARLSON TRAVEL NETWORK TWO BIG TRAVEL AGENCIES SAY AGENTS WITH ACCESS TO BIG COMPUTER RESERVATIONS SYSTEMS CAN GIVE INFORMATION ON DISEASE OUTBREAKS NEEDED VACCINES AND THE LIKE BY TAPPING INTO A DATABASE MOST U. S. AIRLINES' RESERVATIONS STAFF ALSO HAVE ACCESS TO THE DATA BUT WE WOULDN'T BE YOUR PRIMARY SOURCE FOR MEDICAL INFORMATION CAUTIONS AN AMERICAN AIRLINES SPOKESWOMAN U. S. TRAVELERS MIGHT SEEK ADVICE FROM THE INTERNATIONAL TRAVELER HOTLINE FOUR HUNDRED FOUR THREE HUNDRED THIRTY TWO TO FOUR THOUSAND FIVE HUNDRED FIFTY NINE OPERATED BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA IT GIVES INFORMATION ON FOOD AND WATER PRECAUTIONS GENERAL VACCINATION REQUIREMENTS AND GEOGRAPHIC SPECIFIC DISEASES RISKS AND PREVENTION BUT FOR SHOTS TRAVELERS STILL MUST VISIT A PHYSICIAN OR PUBLIC HEALTH CLINIC WHICH MAY NOT HAVE THE VACCINES ON HAND ON THE SOCIETY'S BEHALF DOCTOR MARCUS MAINTAINS A LIST OF TRAVEL MEDICINE PRACTITIONERS IN NORTH AMERICA WHILE FAR FROM COMPLETE THE LIST HAS GROWN TO ONE HUNDRED SEVENTEEN NAMES FROM ABOUT SEVENTY FIVE THREE YEARS AGO HE SAYS TO OBTAIN IT SEND A LARGE SELF ADDRESSED ENVELOPE AND NINETY EIGHT CENTS IN POSTAGE TO TRAVELERS HEALTH AND IMMUNIZATION SERVICES ONE HUNDRED FORTY EIGHT HIGHLAND AVENUE NEWTON MASSACHUSETTS OH TWO ONE SIX FIVE SINCE THE AIR CARRIER ACCESS ACT WENT INTO EFFECT IN NINETEEN NINETY AIRLINES FLYING PLANES OF THIRTY SEATS OR MORE CAN'T REFUSE TO TRANSPORT DISABLED INDIVIDUALS BUT WITH MORE THAN THREE HUNDRED U. S. AIRPORTS SERVED EXCLUSIVELY BY COMMUTER AIRLINES THE DEPARTMENT OF TRANSPORTATION IS PROPOSING TO AMEND THE ACT TO INCLUDE PLANES OF NINETEEN TO THIRTY SEATS AS MORE FEEDER PLANES COME INTO THE HUBS IT'S GOING TO BE AN ISSUE SAYS EDNA COOK DIRECTOR OF FLYING WHEELS TRAVEL AN OWATONNA MINNESOTA AGENCY THAT ARRANGES TRAVEL FOR THE DISABLED PARALYZED VETERANS OF AMERICA CONCEDES THAT IT WOULDN'T MAKE SENSE TO MANDATE SUCH A CHANGE FOR PLANES OF EIGHTEEN SEATS OR FEWER BECAUSE THEY'RE TOO SMALL BUT PVA AND OTHER ADVOCACY GROUPS SUPPORT THE DEPARTMENT'S PLANS TO REQUIRE THE PURCHASE OF RAMPS OR HYDRAULIC COMMUTER AIRCRAFT BOARDING LIFTS TO LOAD WHEELCHAIR USING PASSENGERS INTO NINETEEN TO SEVENTY SEAT PLANES IN MOST CASES THESE TRAVELERS ARE PLACED IN NARROW CHAIRS ON THE TARMAC AND LIFTED ONTO SMALL PLANES SOME UNDERSTANDABLY DON'T LIKE THIS APPROACH AND SOME AIRLINE AND AIRPORT WORKERS CAN'T OR WON'T ASSIST AND SOME HANDICAPPED INDIVIDUALS WHO HAVE BEEN DENIED BOARDING ON NINETEEN SEAT PLANES HAVE SUED AIRLINES WHILE AIRPORTS AND AIRLINES GENERALLY SUPPORT THE PROPOSAL THE BIG STICKING POINT IS WHO WILL PAY FOR THE BOARDING LIFTS WHICH COST BETWEEN EIGHT THOUSAND DOLLARS AND FORTY THOUSAND DOLLARS UNLESS AN AIRLINE IS GOING TO USE IT EXCLUSIVELY THE AIRPORT SHOULD FUND IT SAYS THE REGIONAL AIRLINE ASSOCIATION AIRLINES NOT AIRPORTS ARE RESPONSIBLE FOR HANDLING PASSENGERS RESPONDS THE AIRPORTS COUNCIL INTERNATIONAL THE PLAN WOULD GIVE AIRPORTS AND CARRIERS NINE MONTHS TO DECIDE HOW TO SPLIT THE COST AND THREE YEARS TO INSTALL THE EQUIPMENT HYATT HOTELS IN DOING RESEARCH BEFORE INTRODUCING ROOMS WITH WORKSTATIONS FAX MACHINES AND COMPUTER HOOKUPS FOUND THAT SEVENTY TWO PERCENT OF ITS BUSINESS GUESTS FEEL MORE PRESSURE TO PRODUCE ON BUSINESS TRIPS THAN THEY DID FIVE YEARS AGO MORE THAN EIGHTY PERCENT BELIEVE THEY WORK HARDER THAN THEIR BOSSES ON SUCH TRIPS A CONCIERGE AT CHICAGO'S RITZ CARLTON HOTEL SAID ONE OF HER MOST UNUSUAL REQUESTS LAST YEAR WAS TO RESERVE A BASKETBALL COURT FOR A COMPANY PRESIDENT AND LOOK WHAT HAPPENED TO THEM E. B. DE VITO OF THE CELEBES PREHISTORIC TREES ARE REALLY A BREEZE RESEARCHERS SAID THEY TOOK A KEY FIRST STEP TOWARD CREATING ELECTRONIC MICROCHIPS THAT USE LIVING BRAIN CELLS THE RESEARCHERS SAID THEY HAD LEARNED HOW TO PLACE EMBRYONIC BRAIN CELLS IN DESIRED SPOTS ON SILICON OR GLASS CHIPS AND THEN INDUCE THE BRAIN CELLS TO GROW ALONG DESIRED PATHS THE SCIENTISTS HOPE TO BE ABLE WITHIN THE NEXT SIX TO TWELVE MONTHS TO GET THE BRAIN CELLS OR NEURONS TO GROW CONNECTIONS TO EACH OTHER THAT WILL CRUDELY MIMIC THE CIRCUITRY THAT NEURONS FORM IN THE BRAIN QUOTE I WANT TO EMPHASIZE THIS IS FUNDAMENTAL RESEARCH QUOTE SAID BIOPHYSICIST DAVID L. STENGER OF THE NAVAL RESEARCH LABORATORY IN WASHINGTON WORRIED THAT THE RESEARCH MIGHT BE MISINTERPRETED AS A FLEDGLING EFFORT TO MAKE AN ARTIFICIAL BRAIN WE'RE WORKING WITH SYSTEMS WHERE YOU CAN INVESTIGATE HOW NEURONS WORK HE SAID AS THE RESEARCHERS STUDY HOW THE BIOLOGICAL NEURONS FUNCTION AND CONNECT WITH EACH OTHER ON THE CHIPS THEY SHOULD LEARN HOW TO MAKE BETTER NETWORKS OF ARTIFICIAL NEURONS THAT ELECTRONICS AND COMPUTER DEVELOPERS ARE CURRENTLY TRYING TO ENGINEER DOCTOR STENGER EXPLAINED NEVERTHELESS THEIR BASIC RESEARCH COULD LEAD TO SOME USEFUL BIOELECTRONIC DEVICES SAID DOCTOR STENGER AND HIS COLLABORATOR CHEMIST JAY HICKMAN OF SCIENCE APPLICATIONS INTERNATIONAL CORPORATION IN MCLEAN VIRGINIA A HIGH TECH CONTRACT RESEARCH COMPANY FOR EXAMPLE THE PAIR ARE COLLABORATING WITH RESEARCHERS AT STANFORD UNIVERSITY TO DEVELOP A SENSOR COMPOSED OF NERVE CELLS ON A CHIP THAT WOULD SOUND THE ALARM WHEN IT DETECTED A NERVE POISON SUCH AS NERVE GAS USED IN CHEMICAL WARFARE A BIOELECTRONIC VARIATION OF THE CANARY IN THE COAL MINE IDEA DOCTOR STENGER SAID IT ALSO MAY BE POSSIBLE TO EVENTUALLY MAKE BIOCHIPS THAT DRUG MAKERS COULD USE TO SEE IF NEW COMPOUNDS MIGHT INTERFERE WITH OR PERHAPS ENHANCE FUNCTIONS LIKE MEMORY OR LEARNING DOCTORS STENGER AND HICKMAN WHO ARE FUNDED LARGELY BY THE OFFICE OF NAVAL RESEARCH ARE DEVELOPING THE BIOCHIPS IN COLLABORATIONS WITH SCIENTISTS AT THE NATIONAL INSTITUTES OF HEALTH AND AT THE UNIVERSITY OF CALIFORNIA IRVINE THE SCIENTISTS' PROGRESS TOWARD BIOCHIPS WAS DISCLOSED IN THE FEBRUARY ISSUE OF SIGNAL MAGAZINE A PUBLICATION OF THE ARMED FORCES COMMUNICATIONS AND ELECTRONICS ASSOCIATION COMPOSED OF ELECTRONICS SPECIALISTS IN THE MILITARY AND ITS PRIVATE CONTRACTORS DOCTORS STENGER AND HICKMAN SAID THEY FOUND A WAY TO GET BRAIN CELLS FROM A RAT EMBRYO TO GROW ON EXACTLY THE RIGHT SPOTS ON A CHIP AND THEN TO GET THESE NEURONS TO SEND OUT CONNECTIONS ALONG DESIRED PATHS TO NEIGHBORING NEURONS THE PAIR HAVE IMPROVED UPON AND GREATLY SIMPLIFIED A TECHNIQUE FIRST DESCRIBED IN NINETEEN EIGHTY EIGHT BY RESEARCHERS AT A. T. AND T. BELL LABORATORIES A UNIT OF AMERICAN TELEPHONE AND TELEGRAPH COMPANY THE TWO SCIENTISTS SAID THEY TAKE A CHIP OF SILICON OR GLASS AND COAT IT WITH A SINGLE LAYER OF MOLECULES OF A CHEMICAL THAT PROMOTES THE GROWTH OF NEURONS THEY USED ONE CALLED DETA FOR DIETHYLENETRIAMINE IN THEIR EXPERIMENTS A MICROSCOPIC MASK IS LAID ON THE CHIP THAT SHIELDS BOTH THE SPOTS WHERE THE SCIENTISTS WANT THE NEURONS TO SETTLE AND THE CHANNELS THEY WANT THE NEURONS TO FOLLOW TO MAKE CONNECTIONS AN ULTRAVIOLET LASER REMOVES THE UNSHIELDED DETA AND THE CLEARED SECTIONS ARE FILLED WITH A LAYER OF MOLECULES THAT DISCOURAGE NEURON GROWTH THE NEURONS CAN BE KEPT ALIVE AND FUNCTIONING FOR MONTHS FOR STUDY AND EXPERIMENTATION DOCTOR STENGER NOTED AT PRESENT NEUROSCIENTISTS ARE ABLE TO STUDY NETWORKS OF BRAIN CELLS OUTSIDE THE INTACT ANIMAL FOR ONLY A MATTER OF HOURS ALTHOUGH THE RESEARCHERS HOPE IN THE NEXT FEW MONTHS TO SEE NEURONS ON A BIOCHIP BEGIN TO FORM CIRCUITS QUOTE THE DAY WHEN YOU CAN GET ONE HUNDRED OR SO NEURONS TO FORM CONNECTIONS RELIABLY MAY BE TEN YEARS OR MORE AWAY QUOTE SAID DOCTOR HICKMAN THE BULLS ARE RUNNING IN TOKYO TRIGGERED BY AN AGREEMENT AIMED AT REFORMING JAPAN'S POLITICAL SYSTEM JAPANESE STOCK PRICES ROCKETED SEVEN POINT EIGHT PERCENT MONDAY THE FOURTH LARGEST GAIN EVER IN PERCENTAGE TERMS THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX CLOSED AT TWENTY THOUSAND TWO HUNDRED TWENTY NINE POINT ONE TWO UP ONE THOUSAND FOUR HUNDRED SEVENTY ONE POINT TWO FOUR ON VOLUME OF ABOUT EIGHT HUNDRED MILLION SHARES THE HEAVIEST IN NINE MONTHS IN TRADING TUESDAY THE NIKKEI ROSE TWO HUNDRED TWENTY FOUR POINT ONE THREE POINTS TO CLOSE THE MORNING SESSION AT TWENTY THOUSAND FOUR HUNDRED FIFTY THREE POINT TWO FIVE MONDAY'S GAINERS SWAMPED DECLINERS ONE THOUSAND ONE HUNDRED NINE TO THREE THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES JUMPED ONE HUNDRED ONE POINT FOUR OH OR SIX POINT SIX PERCENT TO ONE THOUSAND SIX HUNDRED TWENTY NINE POINT TWO TWO MONDAY'S BIG RALLY MAY BE MORE THAN ANOTHER FLASH IN THE PAN SO FAR THIS YEAR THE NIKKEI HAS GAINED SIXTEEN POINT ONE PERCENT LEADING MANY JAPANESE TRADERS TO CONCLUDE THAT JAPAN'S FOUR YEAR BEAR MARKET IS OVER QUOTE THE TREND HAS REVERSED QUOTE SAID SHUNICHI HARI GENERAL MANAGER FOR INTERNATIONAL ADMINISTRATION AT YAMAICHI SECURITIES COMPANY THE MARKET COULD BE AT TWENTY FIVE THOUSAND BY THE END OF THE YEAR HE PREDICTED HIS VIEW IS SIGNIFICANT BECAUSE JAPANESE INVESTORS TEND TO BE MORE CRITICAL OF THEIR OWN MARKET THAN FOREIGNERS ARE CERTAINLY THERE'S PLENTY OF OPTIMISM OUTSIDE JAPAN WE HAVE BEEN BULLISH ON THE MARKET FOR SOME TIME WE ARE STILL POSITIVE SAID SIMON FRASER A PORTFOLIO MANAGER FOR FIDELITY INVESTMENTS IN LONDON HE AGREES THAT A NIKKEI OF TWENTY FIVE THOUSAND FROM THESE LEVELS OVER THE NEXT TWELVE MONTHS IS DOABLE FIDELITY IS SO POSITIVE THAT IT IS ABOUT TO LAUNCH A NEW JAPANESE CLOSED END FUND FOR EUROPEAN INVESTORS PATRICK GIFFORD A DIRECTOR AT FLEMING INVESTMENT MANAGEMENT LIMITED IN LONDON NUMBERS HIMSELF AMONG THE BULLS TOO LAST DECEMBER FLEMING SET A TWELVE MONTH TARGET FOR THE NIKKEI OF TWENTY FOUR THOUSAND WE DON'T SEE ANY HARD EVIDENCE THAT WE SHOULD CHANGE THAT SAID MR. GIFFORD POLITICAL REFORM BY ITSELF ISN'T ENOUGH TO SPUR STOCKS SHARPLY HIGHER RATHER IT SETS THE STAGE FOR THE GOVERNMENT TO TURN ITS ATTENTION TO A MAJOR SPENDING PACKAGE AND TAX CUTS AIMED AT STIMULATING JAPAN'S MORIBUND ECONOMY SUCH A STIMULUS PACKAGE VALUED AT MORE THAN FOURTEEN TRILLION YEN ONE HUNDRED TWENTY SEVEN POINT TWO BILLION DOLLARS IS EXPECTED TO BE ANNOUNCED THURSDAY BUT EVEN AMID THE RALLY SOME SKEPTICS WARN THAT THE PLANNED STIMULUS ISN'T LIKELY TO TRANSLATE QUICKLY INTO HIGHER CORPORATE EARNINGS AND THEY SUGGEST THAT THE TOKYO MARKET MAY BE HARD PRESSED TO SUSTAIN THE PACE OF RECENT GAINS THERE ARE NO NEGATIVE FACTORS IN THE MARKET EXCEPT THE ECONOMY AND CORPORATE EARNINGS SAID SHIGERU AKIBA DIRECTOR OF YEN EQUITY TRADING AT U. B. S. SECURITIES LIMITED THERE'S STILL PLENTY OF BAD ECONOMIC NEWS AHEAD FOR JAPAN THE NATION'S ECONOMY IS EXPECTED TO SEE LESS THAN ONE PERCENT GROWTH FOR THE FISCAL YEAR ENDING MARCH THIRTY FIRST AND CORPORATE EARNINGS ARE EXPECTED TO DECLINE FOR THE FOURTH STRAIGHT YEAR AND EARLIER EFFORTS TO STIMULATE THE ECONOMY HAVE BEEN LESS THAN SUCCESSFUL THE PACKAGE TO BE ANNOUNCED THIS WEEK WILL BE THE FOURTH OF ITS KIND IN TWENTY MONTHS WITH LITTLE DISCERNABLE IMPROVEMENT IN THE JAPANESE ECONOMY FROM THE PREVIOUS THREE WORSE FROM THE MARKET'S PERSPECTIVE MANY JAPANESE COMPANIES PARTICULARLY JAPAN'S BATTERED BANKS BADLY NEED PROFITS SO THEY'RE LIKELY TO DISGORGE SOME OF THEIR MASSIVE STOCK HOLDINGS BEFORE THE END OF THE FISCAL YEAR THEN THERE'S THE QUESTION OF WHO WILL BUY INTO THIS RALLY FOREIGN INVESTORS WITH AN ESTIMATED NINE BILLION DOLLARS IN NET PURCHASES IN JANUARY HAVE LED THE BUYING SO FAR INCLUDING ON MONDAY NOW SOME ARE READY TO TAKE A BREAK WE THINK SEVENTEEN THOUSAND TO TWENTY THOUSAND IS THE RANGE FOR THE NIKKEI FOR THE NEXT FEW MONTHS SAID JOHN ALKIRE PRESIDENT OF MORGAN STANLEY ASSET MANAGEMENT IN TOKYO SOME MONEY MANAGERS ARE EVEN MORE PESSIMISTIC QUOTE I CAN'T SEE WHY ANYBODY IS GETTING OVERLY EXCITED ABOUT JAPAN RIGHT NOW QUOTE SAID FERMIN DA COSTA GOMEZ A PORTFOLIO MANAGER AT PACIFIC ASSET MANAGEMENT N. V. IN AMSTERDAM ECONOMIC FUNDAMENTALS AS FAR AS WE ARE CONCERNED HAVEN'T CHANGED NOTING THE RELUCTANCE OF MANY JAPANESE INVESTORS TO INVEST IN THEIR OWN STOCK MARKET HE SAID THE JAPANESE WILL KEEP SELLING AND IT WILL REACH A POINT WHERE THE FOREIGNERS ARE UNWILLING OR UNABLE TO COMMIT ANY MORE MONEY TO JAPANESE STOCKS AT THAT POINT HE PREDICTED YOU COULD GET A REAL TUMBLE BUT OTHERS ARGUE THAT THERE'S STILL PLENTY OF FOREIGN CASH WAITING TO GET INTO THE JAPANESE MARKET MOST U. S. BRITISH AND EUROPEAN INSTITUTIONS ARE UNDERWEIGHTED IN JAPANESE SHARES COMPARED WITH MAJOR INDUSTRY BENCHMARKS THE GREATEST POTENTIAL FOR A SUSTAINED RALLY RESTS WITH JAPANESE INVESTORS THEMSELVES THERE'S SIX POINT SEVEN FIVE TRILLION DOLLARS OF CASH ON THE SIDELINES IN JAPAN SAID MICHAEL HOWELL HEAD GLOBAL STRATEGIST FOR BARING SECURITIES LIMITED IN LONDON FOREIGN BUYERS WERE JOINED MONDAY BY JAPANESE RETAIL CUSTOMERS AND MUTUAL FUNDS BUT TRADERS SAID JAPANESE CORPORATIONS AND FINANCIAL INSTITUTIONS HELD BACK THOSE BIG STOCKHOLDERS ARE LIKELY TO BE SELLERS BEFORE THEY'RE BUYERS SAID MR. ALKIRE AFTER THE MARKET CLOSES THEY'LL MEET AND DECIDE WHAT TO SELL HE SAID OPTIMISTS COUNT ON THE PACKAGE TO SOLVE THE BAD DEBT PROBLEMS IN JAPAN'S FINANCIAL SECTOR AND REVIVE A MORIBUND REAL ESTATE MARKET PEOPLE ARE ALSO LOOKING FOR A TAX CUT OF AS MUCH AS SEVENTY THREE BILLION DOLLARS AS PART OF THE PACKAGE BUT IT ISN'T CLEAR HOW MUCH NEW MONEY THE TAX CUT WILL PUT IN THE POCKETS OF THE AVERAGE JAPANESE OR WHETHER THE MONEY WOULD BE SPENT RATHER THAN SAVED FURTHERMORE THERE'S LITTLE SIGN THE PACKAGE WILL CONTAIN ANY REAL STRUCTURAL CHANGES FOR THE FINANCIAL SYSTEM QUOTE PEOPLE WONDER IF TWENTY THOUSAND IS SUSTAINABLE QUOTE FOR THE NIKKEI SAID YASUFUMI OHIGASHI DEPUTY GENERAL MANAGER OF EQUITY SALES AT NOMURA SECURITIES COMPANY THE BUSINESS FORECASTS ARE STILL NEGATIVE BUT EXPECTATIONS ARE STARTING TO COME OUT THAT MAYBE NEXT YEAR WON'T BE SO BAD AS EQUITY MARKETS RALLIED WORLD WIDE LONDON SHARES GAINED ONE POINT THREE PERCENT TO A RECORD FINISH AFTER A POWERFUL PUSH FROM A COMBINATION OF BRITISH AND GLOBAL FACTORS FRANKFURT STOCKS JUMPED TWO POINT ONE PERCENT PROPELLED BY THE AUTO SECTOR EQUITIES ALSO LOGGED NEW HIGHS IN PARIS SYDNEY MADRID STOCKHOLM BRUSSELS AND MEXICO CITY WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED EIGHTEEN POINT SIX OH UP THREE POINT FOUR SEVEN REFLECTING HIGHER MARKETS IN ALL REGIONS SECURITIES BROKERS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED FIFTY SEVEN POINT SEVEN FOUR UP FOURTEEN POINT FOUR FOUR OR TEN PERCENT WITH DAIWA SECURITIES OF JAPAN POSTING A NINETEEN PERCENT GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT TWO HUNDRED EIGHTEEN POINT SEVEN TWO DOWN ONE POINT OH FOUR OR ZERO POINT FIVE PERCENT WITH KUMPULAN GUTHRIE OF MALAYSIA SLIDING FOUR POINT THREE PERCENT IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX RACED UP FORTY FOUR POINT FOUR POINTS TO THREE THOUSAND FOUR HUNDRED NINETY ONE POINT EIGHT A NEW HIGH AND THE SESSION'S PEAK THE F. T. THIRTY STOCK INDEX SOARED THIRTY SEVEN POINT FOUR POINTS OR ONE POINT FOUR PERCENT TO TWO THOUSAND SIX HUNDRED SEVENTY SEVEN POINT THREE VOLUME WAS NINE HUNDRED EIGHTY NINE POINT TWO MILLION SHARES COMPARED WITH ONE POINT ONE FOUR BILLION SHARES IN THE PREVIOUS SESSION STRONG GAINS IN ASIAN MARKETS AND A WALL STREET RALLY FRIDAY IGNITED STOCKS IN LONDON WHERE INVESTORS WERE RELIEVED THAT POSITIVE U. S. INFLATION DATA INDICATED REMOVAL OF A POTENTIAL DRAG ON THE GLOBAL ECONOMY NEWS OF A TAKEOVER BY BAYERISCHE MOTOREN WERKE OF GERMANY OF ROVER CARS FROM BRITISH AEROSPACE FOR EIGHT HUNDRED MILLION POUNDS ONE POINT ONE TWO BILLION DOLLARS LIFTED HOPES FOR MORE MERGERS AND ACQUISITIONS OTHER POSITIVE FACTORS INCLUDED A GERMAN CENTRAL BANK MEETING THIS WEEK WHEN INTEREST RATES COULD BE LOWERED A CUT IN BELGIAN RATES YESTERDAY ALSO HELPED FOCUS ATTENTION ON THE EUROPEAN RATE OUTLOOK AND THE LONDON STOCK AND BOND MARKETS WERE CHEERED BY A SMALLER THAN EXPECTED INCREASE IN BRITISH MONEY SUPPLY GROWTH IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX RALLIED FORTY THREE POINT NINE EIGHT POINTS TO TWO THOUSAND ONE HUNDRED SEVENTY SEVEN POINT FOUR FIVE ALSO THE INTRADAY HIGH WITH ADVANCING ISSUES OUTNUMBERING RETREATING ISSUES TWENTY EIGHT TO ONE THE INDEX CHALKED UP ABOUT HALF THE DAY'S GAIN IN LATE TRADING ON THE NEWS OF B. M. W.'S ROVER TAKEOVER WHICH ANALYSTS SAID WOULD LEAD TO A DOUBLING OF THE GERMAN AUTO MAKER'S EUROPEAN MARKET SHARE B. M. W. SHARES ROCKETED UP FIFTY SIX POINT FIVE OH MARKS OR EIGHT POINT THREE PERCENT TO SEVEN HUNDRED THIRTY NINE POINT FIVE OH MARKS FOUR HUNDRED TWENTY FOUR DOLLARS AND FIFTY FIVE CENTS BANKING SHARES ALSO OUTPACED THE MARKET ATTRIBUTED TO THE GERMAN CENTRAL BANK'S LOWERING OF BANKS' MINIMUM RESERVE REQUIREMENT WHICH AMOUNTED IN EFFECT TO AN INTEREST RATE CUT IN PARIS STOCKS HIT A NEW RECORD SURPASSING THE MARK SET JANUARY ELEVENTH THE EXCHANGE WAS SWEPT ALONG BY OPTIONS EXPIRATIONS NEW YORK STOCKS' SURGE FRIDAY AND REACTION TO A FRENCH ECONOMIC STIMULUS PLAN INCLUDING MEASURES TO HELP THE AUTO INDUSTRY BY STIMULATING CONSUMER AND CORPORATE CAR PURCHASES IN AMSTERDAM SHARES RALLIED BROADLY ON BARGAIN HUNTING AND COVERING OF SHORT OR OVERSOLD POSITIONS SPARKED BY ADVANCES IN OVERSEAS MARKETS A STRONGER U. S. DOLLAR IN CURRENCY DEALINGS AND EXPECTATIONS THAT INTEREST RATES IN THE NETHERLANDS AND GERMANY MAY DROP SOON IN MILAN THE INDEX THAT INCLUDES ALL ELECTRONICALLY TRADED SHARES SOARED THREE POINT FIVE PERCENT AS SELLERS COULDN'T BE FOUND AND ENORMOUS LIQUIDITY POURED INTO THE MARKET STIMULATED BY LOTS OF CASH IN MUTUAL FUNDS LOW RATES ON GOVERNMENT SECURITIES AND CONFIDENCE ABOUT ITALY'S POLITICAL SITUATION IN ZURICH THE MARKET CLIMBED ONE POINT TWO PERCENT AS BLUE CHIPS SPURRED A RESUMED RALLY HELPED BY PROSPECTS FOR LOWER SWISS INFLATION IN MADRID STOCKS ROSE TO THE SECOND RECORD IN A ROW BOOSTED BY OTHER EXCHANGES' SHARP GAINS AND BY EXPECTATIONS OF INTEREST RATE REDUCTIONS AS WELL AS LATE COVERING OF BORROWED POSITIONS SOLD SHORT ON BETS OF PROFITING BY REPLACING THE STOCK FOLLOWING PRICE DECLINES IN STOCKHOLM PASSING THE ALL TIME HIGH OF THE PREVIOUS SESSION STOCKS JUMPED TWO POINT ONE PERCENT IN EXTREMELY HEAVY TRADING PARTLY ON EXPECTATIONS OF AUTO SECTOR STRENGTH IN BRUSSELS SHARES ROSE TO A RECORD FOR THE THIRD CONSECUTIVE SESSION DRIVEN BY A STRONGER BELGIAN FRANC AND THE BELGIAN RATE CUTS IN MEXICO CITY STOCKS RALLIED ONE POINT FOUR PERCENT TO A THIRD CONSECUTIVE RECORD AS FOREIGN INVESTORS CONTINUED TO INVEST FRESH CASH ESPECIALLY IN TELECOMMUNICATIONS SHARES IN SYDNEY SHARE PRICES SOARED TWO POINT THREE PERCENT TO A NEW CLOSING HIGH BREAKING THE RECORD SET SEPTEMBER TWENTY FIRST NINETEEN EIGHTY SEVEN ON BUYING BY OVERSEAS INVESTORS THE TOKYO MARKET'S SURGE AND POSITIVE NEWS FRIDAY ABOUT STRONG U. S. ECONOMIC GROWTH AND LOWER THAN EXPECTED AUSTRALIAN INFLATION IN HONG KONG THE BENCHMARK INDEX SHOOK OFF NEWS THAT BIG BANKS WOULD MAKE RESIDENTIAL PROPERTY INVESTMENT MORE EXPENSIVE AND ENDED WITH A GAIN OF ALMOST ONE PERCENT IN LIGHT TURNOVER AFTER TRADING ENDED FRIDAY HONG KONG BANKS UNVEILED TOUGHER RESTRICTIONS IN MORTGAGE LENDING POLICIES BUT THE TERMS WERE AS EXPECTED AND ALREADY BUILT INTO SHARE PRICES HEADING OFF BEARISH REACTION MONDAY STOCKS INITIALLY JUMPED BUOYED BY BUYING BY OVERSEAS INVESTORS AND BY TOKYO'S MARKET SURGE THEN FELL ON PROFIT TAKING BEFORE RISING AGAIN IN SINGAPORE SHARES CLIMBED ONE POINT SEVEN PERCENT ON STEADY BUYING DESPITE SOME PROFIT TAKING BY INDIVIDUALS AND SOME SELLING BY JAPANESE INSTITUTIONS AHEAD OF THEIR MARCH THIRTY FIRST FISCAL YEAR END IN KUALA LUMPUR PRICES ADVANCED ONE POINT SIX PERCENT BUT TRADING WAS MODERATE AS RETAIL INVESTORS REDUCED THEIR EXPOSURE AHEAD OF MARKET CLOSURES FOR THE LUNAR NEW YEAR HOLIDAY IN TAIPEI EQUITIES ROCKETED UP FROM THE OPENING AND ENDED ONE POINT SIX PERCENT HIGHER IN MODERATE TURNOVER AS INVESTORS' CONFIDENCE WAS BOOSTED BY NEWS THAT THE TAIWAN GOVERNMENT PLANS TO INCREASE THE LIMIT ON FOREIGN INVESTMENT FUNDS AND BY THE GOVERNING PARTY'S SOLID VICTORY IN SATURDAY'S ELECTIONS SIGNALING FURTHER ECONOMIC GROWTH IN WELLINGTON STOCKS SURGED TWO POINT SIX PERCENT PACED BY FOREIGN INVESTORS THE MARKET WAS BUOYED BY NEWS OF STRONG U. S. GROWTH A BOOMING AUSTRALIAN MARKET AND POSITIVE SENTIMENT ABOUT THE NEW ZEALAND ECONOMY BUT IN MANILA SHARES SLUMPED ONE POINT NINE PERCENT DECLINING FOR THE SECOND STRAIGHT SESSION WITH SOME BLUE CHIPS UNDER PRESSURE 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END THE USE OF PERMANENT HAIR DYES DOES NOT INCREASE THE RISK OF CANCER ACCORDING TO A LARGE SEVEN YEAR STUDY BY THE AMERICAN CANCER SOCIETY THE STUDY PUBLISHED IN TODAY'S ISSUE OF THE JOURNAL OF THE NATIONAL CANCER INSTITUTE WAS DESIGNED TO ADDRESS CONCERNS RAISED BY SEVERAL STUDIES OVER THE YEARS THAT SUGGESTED THAT WOMEN WHO REGULARLY DYE THEIR HAIR RAISED THEIR CHANCES OF DEVELOPING CERTAIN CANCERS BUT THE NEW STUDY INVOLVING MORE THAN A HALF MILLION WOMEN BETWEEN NINETEEN EIGHTY TWO AND NINETEEN EIGHTY NINE FOUND NO LINK BETWEEN HAIR DYE USE AND CANCER OF THE LIVER BREAST LUNG BLADDER CERVIX OR BLOOD FORMING CELLS ONLY PROLONGED USE OF BLACK HAIR DYE WAS TIED TO TWO UNCOMMON CANCERS THE RESEARCHERS SAID THE STUDY WHICH WHEN FULLY COMPLETED WILL INVOLVE INTERVIEWS WITH MORE THAN ONE MILLION WOMEN SPECIFICALLY FOCUSED ON USE OF PERMANENT HAIR DYES WHICH ACCOUNT FOR THE BULK OF THE COMMERCIAL HAIR DYE MARKET THE BIGGEST SELLING BRAND OF PERMANENT HAIR DYE IS THE NICE N. EASY BRAND SOLD BY BRISTOL MYERS SQUIBB COMPANY'S CLAIROL UNIT FOR YEARS RESEARCHERS HAVE WONDERED IF HAIR DYES CONTRIBUTED TO THE RISING INCIDENCE OF CERTAIN CANCERS AMONG WOMEN ESPECIALLY SINCE SOME HAIR DYE INGREDIENTS DAMAGED HUMAN CELLS IN TEST TUBE STUDIES AND IN ANIMALS DESPITE A LINGERING CLOUD OF CONCERN OVER THE PRODUCTS HAIR DYE USE HAS GROWN SHARPLY IN RECENT YEARS REFLECTING THE AGING OF THE BABY BOOM GENERATION IN THE TWELVE MONTHS ENDING LAST NOVEMBER HAIR COLOR PRODUCT SALES IN THE U. S. ROSE FOURTEEN PERCENT TO SEVEN HUNDRED THIRTY POINT THREE MILLION DOLLARS ACCORDING TO INFORMATION RESOURCES INCORPORATED THE NEW RESEARCH LED BY MICHAEL J. THUN OF THE AMERICAN CANCER SOCIETY FOUND THAT WOMEN IN THE STUDY WHO USED HAIR DYES ACTUALLY HAD A SLIGHTLY LOWER RISK OF ALL FATAL CANCERS COMPARED WITH WOMEN WHO NEVER USED HAIR DYE AT ALL THE RESEARCHERS DID FIND THAT WOMEN WHO USED BLACK HAIR DYE FOR AT LEAST TWENTY YEARS INCREASED THEIR RISK OF DEVELOPING TWO UNCOMMON CANCERS NON HODGKIN'S LYMPHOMA AND MULTIPLE MYELOMA THE STUDY'S AUTHORS SAID ONLY FIVE WOMEN IN THE STUDY DEVELOPED THE CANCERS BUT BECAUSE PREVIOUS STUDIES HAD FOUND A LINK WITH CANCER AND THE BLACK HAIR DYES THE RESEARCHERS SUGGESTED THAT CERTAIN INGREDIENTS IN THESE TYPES OF DYES BE ELIMINATED OR THAT THE PRODUCTS CONTAIN LABELS WARNING AGAINST PROLONGED USE USERS OF THE AMERICA ONLINE COMPUTER SERVICE WILL SOON HAVE ACCESS TO AN OLD FASHIONED KIND OF CHIP THE POTATO CHIP AMERICA ONLINE INCORPORATED IN VIENNA VIRGINIA SAID IT WILL TEAM UP WITH SHOPPERS EXPRESS INCORPORATED TO ALLOW SUBSCRIBERS TO ORDER SNACKS GROCERIES AND DRUGS VIA COMPUTER BY THE SPRING THE MOVE WHICH COULD GIVE RECLUSIVE PERSONAL COMPUTER USERS YET ANOTHER REASON TO AVOID THE GREAT OUTDOORS COMES DESPITE AMERICA ONLINE'S SEVERAL FAILED ATTEMPTS TO LINK P. C. USERS TO PERISHABLES SUBSCRIBERS IN MOSTLY URBAN MARKETS WILL BE ABLE TO PLACE ORDERS FOR SAME DAY DELIVERY SHOPPERS EXPRESS WHICH ALREADY PROVIDES PHONE AND FAX ORDERING TO NEARLY FORTY RETAIL CHAINS INCLUDING SAFEWAY INCORPORATED AND WINN DIXIE STORES INCORPORATED WILL PROCESS THE ORDER AND DELIVER IT FOR WHAT AMOUNTS TO A HEFTY TIP A FEE OF FIVE DOLLARS TO TEN DOLLARS USERS WILL PUNCH IN THEIR ZIP CODE AND SHOPPERS EXPRESS WILL DETERMINE THE RETAIL MARKET TO SERVICE THE DELIVERY IN THE PAST LARGE SCALE SHOPPING SERVICES HAVE FAILED BECAUSE OF HIGH COSTS AND CUSTOMERS' UNWILLINGNESS TO GIVE UP QUOTE THE TOUCH THE FEEL THE SMELL QUOTE OF BUYING A BAG OF BARBECUE CHIPS OR A CUT OF BEEF SAYS BRIAN EK SPOKESMAN FOR AN AMERICAN ONLINE RIVAL PRODIGY SERVICES COMPANY A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORPORATION AND SEARS ROEBUCK AND COMPANY PRODIGY OPERATED A GROCERY SHOPPING SERVICE FOR THREE YEARS SHUTTING IT DOWN IN NINETEEN NINETY ONE MAINTAINING THE DATABASES AND UPDATING PRICE CHANGES ON A WEEKLY BASIS WAS VERY MANPOWER INTENSIVE MR. EK EXPLAINS BUT INDUSTRY OFFICIALS EXPECT FEWER PROBLEMS WITH THE NEW SERVICE SHOPPERS EXPRESS RATHER THAN AMERICA ONLINE WILL MAINTAIN THE DATABASE AND THE BETHESDA MARYLAND SHOP AT HOME COMPANY WON'T BOTHER TO ENTER PRICE CHANGES ON A WEEKLY BASIS IN FACT SHOPPERS EXPRESS WON'T OFFER PRICES AT ALL THE COMPANY SAYS ITS FAX AND PHONE ORDERS HAVE GROWN ALTHOUGH CUSTOMERS CAN'T GET PRICES CUSTOMERS ARE MUCH MORE SERVICE CONSCIOUS THAN PRICE CONSCIOUS SAYS KARA KERNAN VICE PRESIDENT OF SHOPPERS EXPRESS BUT SHE ADDS IF IT'S AN ISSUE WE WILL PUT IN AN ESTIMATED COST PER ITEM USERS OF THE SERVICE WILL HAVE TO PICK THEIR TOMATOES ON FAITH AMERICA ONLINE'S NEW LISTINGS WILL OFFER UP WORDS ONLY NO PICTURES MAJOR U. S. AIRLINES RECORDED NO PASSENGER FATALITIES IN NINETEEN NINETY THREE BUT THEY EXPERIENCED MORE MINOR ACCIDENTS THAN IN NINETEEN NINETY TWO THE NATIONAL TRANSPORTATION SAFETY BOARD SAID THE SAFETY BOARD SAID THE FATALITY RATE FOR MAJOR AIRLINES WAS THE LOWEST SINCE NINETEEN EIGHTY COMMUTER AIRLINES HAD FOUR FATAL ACCIDENTS INCLUDING A CRASH THAT KILLED EIGHTEEN IN MINNESOTA THAT COMPARES WITH SEVEN FATAL ACCIDENTS LAST YEAR PRIVATELY OWNED PLANES HAD THREE HUNDRED EIGHTY FIVE FATAL ACCIDENTS THE LOWEST LEVEL IN AT LEAST TEN YEARS THE AIR TRANSPORT ASSOCIATION WHICH REPRESENTS LARGE AIRLINES SAID THE QUOTE OUTSTANDING NINETEEN NINETY THREE SAFETY RECORD QUOTE REFLECTS THE INDUSTRY'S QUOTE LONG TERM COMMITMENT TO SAFETY QUOTE THE GROUP COMPLAINED THAT CRITICS ARE RAISING THE SAFETY BUGABOO AS A WAY TO SCARE THE PUBLIC A REFERENCE TO CONGRESSIONAL CRITICS OF THE CLINTON ADMINISTRATION'S PLAN TO CREATE A GOVERNMENT CORPORATION TO RUN THE AIR TRAFFIC CONTROL SYSTEM STILL WHILE THE DEATH RATE ON MAJOR AIRLINES DECLINED FROM THE THIRTY ONE PASSENGER DEATHS IN NINETEEN NINETY TWO THE ACCIDENT RATE ROSE THE SAFETY BOARD SAID MAJOR AIRLINES HAD TWENTY THREE ACCIDENTS WITHOUT PASSENGER FATALITIES IN NINETEEN NINETY THREE UP FROM TWELVE IN NINETEEN NINETY TWO LEHMAN BROTHERS INCORPORATED SAID IT WILL LAUNCH A NEW DERIVATIVES UNIT AND IS EXPECTED TO ANNOUNCE TODAY THAT NUNZIO TARTAGLIA WILL SERVE AS THE HEAD OF EQUITY DERIVATIVES RESEARCH AND QUANTITATIVE ANALYSIS LEHMAN IS A UNIT OF AMERICAN EXPRESS COMPANY BUT NOT FOR MUCH LONGER THE ESTABLISHMENT OF THE DERIVATIVES SUBSIDIARY AND THE HIRING OF MR. TARTAGLIA COME IN THE WAKE OF AMERICAN EXPRESS'S ANNOUNCEMENT LAST WEEK THAT IT WAS GETTING OUT OF THE SECURITIES BUSINESS IT WILL PUMP ONE POINT OH NINE BILLION DOLLARS INTO LEHMAN AND SPIN IT OFF AS A PUBLIC COMPANY IN THE FORM OF A DIVIDEND TO AMERICAN EXPRESS SHAREHOLDERS SOMETIME IN LATE APRIL OR MAY MR. TARTAGLIA WILL WORK WITH THE DERIVATIVES UNIT BUT WILL BE EMPLOYED BY THE PARENT COMPANY THE FIFTY SEVEN YEAR OLD FORMER ASTROPHYSICIST AND JESUIT SEMINARIAN WAS ONE OF THE HANDFUL OF NOW WELL KNOWN ACADEMICS AND SCIENTISTS FIRST RECRUITED BY INVESTMENT BANKS IN THE NINETEEN EIGHTIES TO HELP DESIGN COMPLEX SECURITIES TRADING STRATEGIES HE JOINS LEHMAN FROM HIS POSITION AS A PORTFOLIO MANAGER AT BOSTON BASED HARVARD MANAGEMENT COMPANY WHICH MANAGES HARVARD UNIVERSITY'S ENDOWMENT BUT HIS CAREER HAS TAKEN HIM FROM BELL LABORATORIES TO DREXEL BURNHAM LAMBERT INCORPORATED TO MORGAN STANLEY AND COMPANY WHERE HE RAN ITS PROFITABLE QUOTE BLACK BOX QUOTE THE ANALYTICAL PROPRIETARY TRADING UNIT UNTIL SEPTEMBER NINETEEN EIGHTY NINE THEN HE BRIEFLY RAN HIS OWN HEDGE FUND DERIVATECH BEFORE MOVING TO HARVARD MANAGEMENT THIS IS LIKE BR'ER RABBIT BACK IN THE BRIAR PATCH SAID MR. TARTAGLIA I LOVE IT DERIVATIVES IS A VERY EXCITING AREA RIGHT NOW HE SAID AND LEHMAN'S GOAL OF CLOSELY INTEGRATING ITS EQUITY DERIVATIVES AND QUANTITATIVE ANALYSIS DIVISIONS MADE THE POSITION VERY ATTRACTIVE TO HIM THE TRIPLE A RATING FOR LEHMAN'S DERIVATIVES UNIT IS IMPORTANT BECAUSE THE DERIVATIVES MARKET HAS BECOME INCREASINGLY CREDIT SENSITIVE MANY MULTINATIONAL COMPANIES WON'T DEAL WITH WALL STREET FIRMS WITH BELOW A DOUBLE A RATING SWAP DEALERS WITH TRIPLE A RATINGS HAVE A TREMENDOUS ADVANTAGE OVER OTHER WALL STREET DEALERS WITH LOWER RATINGS J. P. MORGAN AND COMPANY'S INVESTMENT IN A FAILED SPANISH BANK HAS SPURRED A HOUSE BANKING COMMITTEE STUDY OF THE FEDERAL RESERVE BOARD'S REGULATION OF OVERSEAS ACTIVITIES OF U. S. BANKS COMMITTEE CHAIRMAN HENRY GONZALEZ D. TEXAS ASKED ALAN GREENSPAN FED CHAIRMAN A SERIES OF QUESTIONS ABOUT THE FED'S OVERSIGHT OF MORGAN'S PURCHASE OF AN INTEREST IN BANCO ESPANOL DE CREDITO OR BANESTO THROUGH A CLOSEDEND INVESTMENT FUND CALLED CORSAIR PARTNERSHIP L. P. SEVERAL MONTHS AFTER THE PARTNERSHIP INVESTED ONE HUNDRED SIXTY SIX MILLION DOLLARS IN BANESTO THE BANK WAS SEIZED IN DECEMBER BY THE CENTRAL BANK OF SPAIN IN ADDITION THE PANEL ASKED THE FED FOR INFORMATION ABOUT HOW IT REGULATES BANK RUN QUOTE VULTURE FUNDS QUOTE WHICH INVEST IN SICK COMPANIES THAT ARE EXPECTED TO GET WELL AND PROSPER THE PANEL IS CONCERNED THAT SUCH FUNDS MAY BECOME VEHICLES FOR BANK PURCHASES OF LARGE BLOCKS OF SHARES IN BOTH FINANCIAL AND NONFINANCIAL COMPANIES TRUSTEES OF A PENSION FUND PLUNDERED BY THE LATE BRITISH PUBLISHER ROBERT MAXWELL ACCEPTED A THIRTY TWO MILLION POUND FORTY SEVEN POINT EIGHT MILLION DOLLARS SETTLEMENT OF THEIR LAWSUIT AGAINST THREE MAXWELL COMPANY FINANCIAL ADVISERS AS EXPECTED THE SETTLEMENT BY LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS COMPANY CAPEL CURE MYERS CAPITAL MANAGEMENT LIMITED AND INVESCO P. L. C. WAS ANNOUNCED MONDAY ON THE EVE OF THE TRIAL HERE UNDER THE SETTLEMENT THE THREE DEFENDANTS DIDN'T ADMIT ANY WRONGDOING THE LAWSUIT BY PENSION FUND TRUSTEES OF MIRROR GROUP P. L. C. A FORMER MAXWELL COMPANY HAD CHARGED THE THREE FIRMS WITH PARTICIPATING IN IMPROPER SECURITIES TRANSACTIONS ORDERED BY MR. MAXWELL IN A VAIN EFFORT TO PROP UP HIS CRUMBLING PUBLISHING EMPIRE SINCE MR. MAXWELL'S NINETEEN NINETY TWO DEATH BRITISH POLICE HAVE CHARGED THE LATE PUBLISHER WITH PLUNDERING AT LEAST THREE HUNDRED MILLION POUNDS FROM VARIOUS EMPLOYEE PENSION FUNDS THE MIRROR GROUP FUND'S TRUSTEES ALLEGE MR. MAXWELL AND ASSOCIATES TOOK EIGHTY EIGHT MILLION POUNDS FROM THEIR FUND PLUS ANOTHER ONE HUNDRED FIFTY MILLION POUNDS FROM A RELATED FUND YESTERDAY'S SETTLEMENT WAS FOR THE THREE FINANCIAL FIRMS' FIFTY MILLION POUND SHARE OF THE EIGHTY EIGHT MILLION POUND MIRROR FUND CLAIM AS PART OF THE SETTLEMENT THE TRUSTEES DROPPED THEIR CLAIM FOR THE ADDITIONAL ONE HUNDRED FIFTY MILLION POUNDS A UNIT OF MCDERMOTT INTERNATIONAL INCORPORATED SIGNED A CONTRACT FOR ABOUT FORTY FIVE MILLION DOLLARS OF CONSTRUCTION AT A POWER STATION IN REESEDALE PENNSYLVANIA FIFTY MILES NORTHEAST OF PITTSBURGH BABCOCK AND WILCOX CONSTRUCTION COMPANY WILL DEMOLISH AND REBUILD TWO BOILERS AT WEST PENN POWER COMPANY'S ARMSTRONG STATION UNITS ONE AND TWO THE CONSTRUCTION COMPANY IS A UNIT OF BABCOCK AND WILCOX COMPANY WHICH ITSELF IS A SUBSIDIARY OF MCDERMOTT STEVENS GRAPHICS CORPORATION SAID ITS SENIOR LENDERS AGREED TO EXTEND ITS CURRENT EIGHTEEN MILLION DOLLAR REVOLVING LENDING AGREEMENT UNTIL APRIL THIRTIETH WHILE THE MAKER OF PRINTING EQUIPMENT TRIES TO NEGOTIATE A NEW AGREEMENT WITH ITS BANKERS THE CURRENT AGREEMENT WAS TO HAVE EXPIRED YESTERDAY QUOTE WE HAVE A LOT WE CAN LEARN FROM THE GERMANS QUOTE PRESIDENT CLINTON SAID RECENTLY TRYING TO SELL HIS HEALTH CARE PLAN THE GERMANS ARE ABLE TO PROVIDE A VERY HIGH QUALITY HEALTH CARE SYSTEM AT A MUCH LOWER COST THAN WE ARE BECAUSE THEY HAVE MUCH MORE DISCIPLINE IN THE WAY IT'S ORGANIZED AND FINANCED IN AN ADDRESS TO THE NATIONAL GOVERNORS ASSOCIATION YESTERDAY GERMAN CHANCELLOR HELMUT KOHL SAID THAT IN THE RUN UP TO AMERICA'S HEALTH CARE REFORM THERE WAS AN INTENSE EXCHANGE OF OPINIONS BETWEEN AMERICAN AND GERMAN EXPERTS ON THE SURFACE THE GERMAN SYSTEM DOES INDEED LOOK GOOD IT INSURES SOCIETY COMPREHENSIVELY AND GIVES INDIVIDUALS QUALITY COVERAGE THAT IS PERMANENT AND PORTABLE FROM JOB TO JOB GERMANY SPENDS ABOUT TEN POINT SIX PERCENT OF ITS GROSS DOMESTIC PRODUCT ON HEALTH AS OPPOSED TO ABOUT FOURTEEN PERCENT SPENT IN THE U. S. BUT SIMPLE COMPARISONS ARE MISLEADING GERMANY AND THE U. S. DIFFER GREATLY IN ASPECTS NOT CONTROLLED BY DOCTORS AND HOSPITALS SUCH AS CRIME RELATED INJURIES MALPRACTICE INSURANCE AND NURSING CARE FOR THE ELDERLY IT IS WORTH NOTING TOO THAT THE COSTS OF GERMANY'S PLAN HAVE RISEN BY A SHARP TWENTY THREE PERCENT AFTER INFLATION OVER THE PAST THREE YEARS IT PAYS TO TAKE A GOOD LOOK AT THE GERMAN SYSTEM BEFORE PRESCRIBING IT IN THE U. S. THE SIMILARITIES BETWEEN THE CLINTON PLAN AND THE GERMAN SYSTEM ARE STRIKING THE PRESIDENT WANTS UNIVERSAL COVERAGE GERMANY HAS NEARLY ACHIEVED THAT GERMAN LAW MANDATES THAT EVERYONE ENROLL IN THE HEALTH INSURANCE SYSTEM WITH THE IMPORTANT EXCEPTION OF HIGHER INCOME EARNERS MAKING MORE THAN THREE THOUSAND THREE HUNDRED DOLLARS A MONTH THE OPT OUT INCOME LEVEL IS SET RELATIVELY HIGH SO THAT ABOUT SEVENTY FOUR PERCENT OF GERMANS MUST JOIN ANOTHER FOURTEEN PERCENT VOLUNTARILY JOIN OR STAY IN THE STATUTORY HEALTH SYSTEM ALTHOUGH THEIR INCOME HAS RISEN BEYOND THE CUTOFF ABOUT TEN PERCENT HIGHER INCOME EMPLOYEES SELF EMPLOYED HAVE PRIVATE INSURANCE AND FEWER THAN ONE PERCENT HAVE NO INSURANCE REGIONAL HEALTH ALLIANCES A BIG CLINTON IDEA ARE THE CORNERSTONE OF THE GERMAN SYSTEM COMPANIES WITH MORE THAN ONE THOUSAND EMPLOYEES FIVE THOUSAND IN THE CLINTON PLAN HAVE THE OPTION OF FORMING A CORPORATE ALLIANCE THESE ROUGHLY ONE THOUSAND REGIONAL OR OTHER ALLIANCES ARE THE MONOPOLY BUYERS OF MEDICAL SERVICES FOR THE EIGHTY EIGHT PERCENT OF GERMANS WHO BELONG TO THE STATUTORY SYSTEM THE CLINTON TEAM WANTS A SYSTEM THAT GUARANTEES IDENTICAL BENEFIT STANDARDS FOR ALL ALLIANCES THE AMERICAN DEBATE OVER COVERAGE FOR MAMMOGRAMS AND PROSTATE CANCER TESTS ALREADY GIVES A WHIFF OF HOW CONTROVERSIAL THE CONTENTS OF THIS LIST WILL BE IN GERMANY WHICH ALREADY HAS SUCH UNIFIED STANDARDS THE CONTENTS OF THE LIST ARE SO IMPORTANT THEY CAN AFFECT ELECTIONS COVERAGE OF ABORTIONS FOR EXAMPLE WILL PLAY A ROLE IN ELECTIONS THIS YEAR THE NET RESULT GERMANY SHOWS IS THAT THE LIST SIMPLY GROWS OVER THE YEARS GERMANS PAY FOR THEIR PLAN THROUGH WHAT IS ESSENTIALLY A PAYROLL TAX JUST AS THE PRESIDENT WOULD HAVE AMERICANS DO EMPLOYERS AND EMPLOYEES IN GERMANY EACH PAY HALF OF THE TAX RATHER THAN THE EIGHTY PERCENT TO TWENTY PERCENT SPLIT PROPOSED IN THE CLINTON PLAN THE TAX RATE DIFFERS AMONG THE ALLIANCES RANGING FROM EIGHT PERCENT TO SIXTEEN POINT EIGHT PERCENT OF PAYROLL AGGREGATE OF EMPLOYER AND EMPLOYEE SHARE WITH AN AVERAGE OF THIRTEEN POINT FOUR PERCENT YET GERMANY'S PROGRAM GIVES US CLEAR EVIDENCE OF THE DEGREE TO WHICH THIS SYSTEM LENDS ITSELF TO ABUSE ONCE THEIR TAX IS PAID GERMANS GRAZE THEMSELVES TO OBESITY ON MEDICAL SERVICES THE CLINTON PLAN HAS THE SAME BIAS TOWARD EXCESSIVE INDIVIDUAL USE OF MEDICAL SERVICES AT THE EXPENSE OF ALL MEMBERS OF AN ALLIANCE THE GERMAN SYSTEM'S MAJOR FAULT IS THAT IT DOESN'T PUT PEOPLE FIRST IN THE SENSE OF BUILDING ON INDIVIDUAL RESPONSIBILITY AND CONTROL THROUGH EFFECTIVE COPAYMENTS AND OTHER INCENTIVES TO SAVE IT IS INTERESTING THAT CORPORATE ALLIANCES ORGANIZED BY COMPANIES THAT HAVE AN INTEREST IN HOLDING THEIR OWN FIFTY PERCENT SHARE DOWN TYPICALLY HAVE PREMIUMS FAR BELOW THE AVERAGE REGIONAL ALLIANCE THE CLINTON PLAN'S CRITICS BELIEVE THAT THIS SYSTEM ALSO STRENGTHENS BUREAUCRACY THE GERMAN PLAN PROVES THEM CORRECT WHILE THE ALLIANCES WERE ORIGINALLY DEVISED AS NONGOVERNMENTAL HEALTH PLAN PURCHASING COOPERATIVES THEY HAVE DEGENERATED INTO DE FACTO GOVERNMENT AGENCIES SOME ONE HUNDRED TWELVE THOUSAND EMPLOYEES IN WESTERN GERMANY ALONE WORK FOR ALLIANCES THEIR ADMINISTRATIVE COSTS PER MEMBER HAVING RISEN BY FIFTY THREE POINT FIVE PERCENT ADJUSTED FOR INFLATION FROM NINETEEN EIGHTY TWO TO NINETEEN NINETY TWO THIS IS MORE THAN THE INCREASE IN THE ALLIANCES' TOTAL HEALTH COSTS REVEALING THAT THE DISEASE OF BUREAUCRACY IS THE REAL PROBLEM THE CLINTON PLAN'S CRITICS ALSO FEAR THAT IT WILL QUICKLY BECOME A SINGLE PAYER SYSTEM IN EFFECT GERMANY'S HAS ALREADY BECOME ONE FINANCED BY THE PAYROLL TAX FOR THE EIGHTY EIGHT PERCENT IN THE STATUTORY SYSTEM PATIENTS DO NOT SEE A DOCTOR'S BILL THUS THEY HAVE NO WAY OF REALIZING WHETHER THE CHARGE FOR A SERVICE HAS BEEN PARTICULARLY EXPENSIVE OR EVEN WHETHER THE SERVICE HAS ACTUALLY BEEN RENDERED THE DOCTOR SENDS HIS BILL TO HIS REGIONAL ASSOCIATION OF PHYSICIANS AS THE FINANCIAL CLEARING HOUSE AND COUNTERPART OF THE PATIENT'S ALLIANCE HIDDEN TAXES A FLAW IN THE CLINTON PLAN ARE ALREADY PART OF THE GERMAN PLAN BECAUSE THE AVERAGE GERMAN CARRIES ONLY FIFTY PERCENT OF HIS HEALTH CARE COSTS DIRECTLY HE IS AWARE OF ONLY HIS FIFTY PERCENT AND INCREASES MAY NOT BOTHER HIM TOO MUCH BUT THE FIFTY PERCENT THE EMPLOYER CARRIES IS REFLECTED IN OVERALL LABOR COSTS THAT MAKE GERMANY THE SECOND MOST EXPENSIVE COUNTRY IN THE WORLD TO EMPLOY PEOPLE AFTER SWITZERLAND AND ONE WITH HIGHER UNEMPLOYMENT THAN THE U. S. UNDER THE PLANNED EIGHTY PERCENT EMPLOYER COST SHARING IN THE CLINTON PLAN THIS LABOR DEPRESSING EFFECT WOULD EVEN BE MORE PRONOUNCED IN THE U. S. COST SHARING AND LACK OF INCENTIVES TO SAVE FORM A POTENT DRUG DRIVING HEALTH COSTS UP UNOBSERVED HIDDEN TAXES GROW THE GERMAN PAYROLL TAX ROSE FROM AN AVERAGE OF SIX PERCENT IN NINETEEN FIFTY TO EIGHT POINT FOUR PERCENT IN NINETEEN SIXTY AND ELEVEN POINT FOUR PERCENT IN NINETEEN EIGHTY BEFORE REACHING ITS CURRENT THIRTEEN POINT FOUR PERCENT FINANCIALLY THE GERMAN PLAN IS ALSO NO MODEL FOR TWENTY YEARS IT HAS VACILLATED BETWEEN FINANCIAL DISTRESS AND COLLAPSE AND THE GOVERNMENT HAS INTRUDED WITH EVER TIGHTER REGULATIONS SINCE NINETEEN SEVENTY SEVEN ALONE THERE HAVE BEEN NINE FEDERAL LAWS TRYING TO CURB COSTS GERMAN MEASURES TO CONTROL COSTS FORESHADOW THE RESULTS OF THE CLINTON PLAN PRICE CONTROLS AND CONTROL OF SUPPLY LAST YEAR PHYSICIANS DENTISTS AND PRESCRIPTION DRUGS WERE EACH AS A GROUP SUBJECTED TO NARROW BUDGET CAPS AND TIGHT REGIONAL QUOTAS NOW LIMIT THE NUMBER OF DOCTORS ALLOWED TO PRACTICE UNDER THE SYSTEM THE PHYSICIAN ASSOCIATIONS HAVE TO POLICE THEIR MEMBERS WITH RESPECT TO EXCESSIVE ABOVE AVERAGE SERVICES MORE COST EFFECTIVE PARTICULARLY CORPORATE ALLIANCES NOW HAVE TO CROSS SUBSIDIZE HIGH COST ALLIANCES THUS REWARDING INEFFICIENCY IN THE NAME OF SOLIDARITY PRUDENT INSURED PEOPLE AND PRUDENT DOCTORS ARE STILL NOT REWARDED FOR COST SAVINGS IN THE FORM OF LOWER PREMIUMS OR BONUSES NEEDLESS TO SAY ALL REFORM ATTEMPTS HAVE MISSED THEIR TARGETS ALTHOUGH ONLY TEN PERCENT OF GERMANS ARE COVERED BY PRIVATE INSURANCE IT OFFERS SOME OBVIOUS LESSONS FOR EVERYONE FIRST PAYROLL TAXES IN THE STATUTORY SYSTEM ARE TWENTY FIVE PERCENT HIGHER THAN PRIVATE PREMIUMS SINCE PRIVATE INSURERS COMPETE VIGOROUSLY THEIR BENEFITS ARE BETTER AND THE ADMINISTRATIVE COST PER INSURED PERSON IS ONLY HALF SECOND THE PRIVATE ALTERNATIVE FORCES THE STATUTORY SYSTEM TO IMPROVE WITHIN LIMITS SINCE OTHERWISE ITS VOLUNTARY MEMBERS WOULD OPT OUT FOR PRIVATE INSURANCE THIS BENEFICIAL EFFECT IS INDIRECTLY EVIDENCED BY THE LARGER INEFFICIENCIES IN COUNTRIES THAT FORCE EVERYBODY INTO A STATUTORY SYSTEM MAYBE THE CLINTON TEAM LOOKED AT VARIOUS STATUTORY SYSTEMS AND CONCLUDED THAT GERMANY'S LOOKED BEST THE ONE EYED IS KING AMONG THE BLIND BUT WHY DOES THE PRESIDENT WANT TO EMULATE THE NINETY PERCENT OF THE GERMAN SYSTEM THAT IS FAILING INSTEAD OF THE TEN PERCENT THAT IS EFFECTIVE PERHAPS THE MOST INTERESTING REVELATION FROM THE GERMAN PLAN THOUGH IS THAT IT SHOWS HOW UNREALISTIC MR. CLINTON'S IS IN THE U. S. THE MAXIMUM PREMIUM TO AN ALLIANCE WILL BE ABOUT TEN PERCENT OF PAYROLL THIS IS SUPPOSED TO PAY FOR HEALTH COSTS THAT NOW AMOUNT TO FOURTEEN PERCENT OF G. D. P. SET TO RISE TO SEVENTEEN POINT THREE PERCENT IN THE YEAR TWO THOUSAND UNDER THE CLINTON PLAN'S REFORM PROJECTIONS EIGHTEEN POINT NINE PERCENT OTHERWISE IF A THIRTEEN POINT FOUR PERCENT PAYROLL TAX IN GERMANY IS NEEDED TO FINANCE TEN POINT SIX PERCENT OF G. D. P. IT IS HARD TO CONCEIVE HOW IN THE U. S. A MUCH SMALLER PAYROLL TAX OF TEN PERCENT CAN FINANCE U. S. HEALTH CARE COSTS AT A MUCH LARGER SHARE OF FOURTEEN PERCENT TO SEVENTEEN PERCENT OF G. D. P. THE MISSING GAP IS TOO LARGE TO BE FILLED BY THE DESIGNATED SUBSIDIES AND SIN TAXES IF YOU WANT TO COPY PAGES OUT OF THE GERMAN SOCIAL POLICY BOOK HAVE YOUR CHECKBOOK HANDY MR. PREWO IS CHIEF EXECUTIVE OF THE CHAMBER OF INDUSTRY AND COMMERCE IN HANOVER GERMANY BALTIC INTERNATIONAL U. S. A. INCORPORATED AN INITIAL OFFERING OF ONE MILLION COMMON SHARES VIA TEXAS CAPITAL SECURITIES INCORPORATED ELECTRONIC FAB TECHNOLOGY CORPORATION AN INITIAL OFFERING OF ONE MILLION FIVE HUNDRED FIFTEEN THOUSAND SHARES OF COMMON STOCK VIA DAIN BOSWORTH INCORPORATED AND STEPHENS INCORPORATED OVERSEAS SHIPHOLDING GROUP INCORPORATED AN OFFERING OF THREE MILLION COMMON SHARES WITH AN OVER ALLOTMENT OPTION OF FOUR HUNDRED FIFTY THOUSAND ADDITIONAL SHARES VIA GOLDMAN SACHS AND COMPANY J. P. MORGAN SECURITIES INCORPORATED AND FURMAN SELZ INCORPORATED ROCHE HOLDING LIMITED A SWISS DRUG AND CHEMICAL COMPANY SAID IT HAS BEGUN A MAJOR INTERNATIONAL STUDY OF A NEW EXPERIMENTAL AIDS DRUG AS A RESULT OF PROMISING STUDIES IN PATIENTS COMPLETED LAST YEAR ROCHE THE PARENT OF HOFFMANN LA ROCHE INCORPORATED SAID IT WILL STUDY A DRUG CALLED R. ZERO THREE ONE TO EIGHT THOUSAND NINE HUNDRED FIFTY NINE IN MORE THAN THREE THOUSAND PATIENTS WITH AIDS IN THE U. S. AND ABROAD THE DRUG IS PART OF A CLASS THAT DEACTIVATES THE AIDS VIRUS BY BLOCKING AN ENZYME CALLED PROTEASE THAT THE VIRUS USES TO REPRODUCE IN RECENT MONTHS SCIENTIFIC INTEREST IN THESE DRUGS HAS INCREASED SHARPLY AS FIVE COMPANIES INCLUDING MERCK AND COMPANY AND WELLCOME P. L. C. HAVE STEPPED UP EFFORTS TO TEST THEIR VERSIONS OF THE PROTEASE BLOCKING DRUGS THE RACE TO DEVELOP QUOTE PROTEASE DRUGS INTENSIFIED AFTER ROCHE LAST YEAR PRESENTED PRELIMINARY HUMAN TESTS IN EUROPE SHOWING THE DRUG WAS SAFE AND APPEARED TO REDUCE LEVELS OF VIRUS IN THE BLOODSTREAM KEITH BRAGMAN HEAD OF ROCHE'S INTERNATIONAL PROGRAM SAID THE COMPANY HAS MOVED QUICKLY TO ORGANIZE TESTING IN NINETY SITES AROUND THE WORLD WE WERE QUITE EXCITED BY THE INITIAL EUROPEAN RESULTS HE SAID WE ARE THE FIRST COMPANY TO SHOW IN HUMANS PROOF OF THE CONCEPT OF BLOCKING THE PROTEASE ENZYME THE ROCHE DRUG IS KNOWN TO BE VERY EXPENSIVE TO SYNTHESIZE INVOLVING OVER TWENTY ONE STEPS ROCHE SAID THE CURRENT STUDY WILL COST MANY MILLIONS OF DOLLARS ALTHOUGH IT DECLINED TO BE MORE SPECIFIC TRAVELERS INCORPORATED CANCELED A CONTROVERSIAL PLAN TO RAISE HOMEOWNERS INSURANCE RATES ON LONG ISLAND GIVING UP ITS CHALLENGE TO OBJECTIONS RAISED BY THE NEW YORK STATE INSURANCE DEPARTMENT TRAVELERS ATTEMPTED TO RAISE RATES BY TWENTY PERCENT FOLLOWING HURRICANE ANDREW IN AUGUST NINETEEN NINETY TWO OTHER INSURERS RAISED RATES IN LOUISIANA AND FLORIDA AFTER THE STORM BUT TRAVELERS WAS THE FIRST TO TRY TO RAISE RATES IN A STATE THAT DIDN'T BORDER ON THE GULF OF MEXICO TRAVELERS WAS HELD UP AS AN EXAMPLE OF QUOTE SHORELINING QUOTE A PRACTICE WHERE INSURANCE COMPANIES TRY TO AVOID INSURING HOMES IN COASTAL AREAS THIS DEPARTMENT WILL NOT ALLOW INSURANCE COMPANIES TO RAISE HOMEOWNERS INSURANCE RATES UNLESS THEY CAN CLEARLY DEMONSTRATE THEY HAVE SUFFERED LOSSES SAID NEW YORK INSURANCE SUPERINTENDENT SALVATORE CURIALE TRAVELERS DECLINED COMMENT ON WHY IT BACKED AWAY FROM ITS CHALLENGE IT SAID IT WILL REFUND MONEY TO POLICYHOLDERS WHO ALREADY HAVE PAID THE HIGHER RATES GENERAL TIRE INCORPORATED AND BIG O. TIRES INCORPORATED SAID THEY QUOTE MUTUALLY AGREED QUOTE TO TERMINATE A MAY NINETEEN NINETY THREE MARKETING AGREEMENT BETWEEN THE TWO COMPANIES THE AGREEMENT TO BE RENEWED ANNUALLY HAD PROVIDED FOR GENERAL TIRE BASED IN AKRON TO SUPPLY TIRES TO BIG O. BASED IN ENGLEWOOD COLORADO A SPOKESWOMAN FOR BIG O. SAID THE AGREEMENT WAS TERMINATED BECAUSE OF POLICY DIFFERENCES BETWEEN THE TWO COMPANIES GENERAL TIRE THE U. S. AND CANADIAN ARM OF GERMAN TIRE MAKER CONTINENTAL A. G. WILL CONTINUE TO SELL TIRES TO A DIVISION OF BIG O. THAT SUPPLIES TIRES TO DISTRIBUTORS MAINLY IN THE EASTERN U. S. MICHAEL J. CONWAY THE DEPOSED CHIEF EXECUTIVE OFFICER OF AMERICA WEST AIRLINES HAS RESIGNED FROM THE CARRIER'S BOARD REDUCING THE NUMBER OF DIRECTORS TO NINE MR. CONWAY ONE OF THE COMPANY'S FOUNDERS WAS OUSTED AS CHIEF EXECUTIVE ON NEW YEAR'S EVE CULMINATING A FEUD WITH AMERICA WEST CHAIRMAN WILLIAM A. FRANKE MR. CONWAY HAD PREVIOUSLY SAID HE WOULD STAY ON THE BOARD TO HELP THE AIRLINE EMERGE FROM CHAPTER ELEVEN BANKRUPTCY PROCEEDINGS WHERE IT HAS OPERATED FOR ALMOST THREE YEARS IN AN INTERVIEW YESTERDAY MR. CONWAY DECLINED COMMENT ON WHY HE RESIGNED IT IS KNOWN HOWEVER THAT THE FORTY EIGHT YEAR OLD MR. CONWAY IS TALKING TO POSSIBLE INVESTOR GROUPS IN AMERICA WEST AND PEOPLE FAMILIAR WITH THE SITUATION SAY MR. CONWAY WOULD LIKE TO RETURN TO THE AIRLINE AFTER IT EMERGES FROM CHAPTER ELEVEN WITH NEW OWNERSHIP MR. CONWAY DECLINED TO COMMENT ON HIS FUTURE PLANS UNITED TECHNOLOGIES CORPORATION SAID GEORGE DAVID PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER CHAIRMAN ROBERT F. DANIELL SIXTY YEARS OLD CALLED THE MOVE A QUOTE LOGICAL NEXT STEP IN A CAREFULLY PLANNED TRANSITION PLAN TO ASSURE CONTINUITY AND STABILITY IN OUR TOP MANAGEMENT SUCCESSION QUOTE THE PROMOTION OF MR. DAVID FIFTY ONE WHO HAS BEEN SHEPHERDING A MAJOR RESTRUCTURING OF THE COMPANY DIDN'T SURPRISE WALL STREET ANALYSTS SINCE BEING NAMED PRESIDENT AND CHIEF OPERATING OFFICER TWO YEARS AGO MR. DAVID HAS PLAYED A VISIBLE ROLE AT THE COMPANY IN MANAGING THE RESTRUCTURING ANNOUNCED IN AUGUST NINETEEN NINETY ONE THE RESTRUCTURING IS INTENDED TO SLASH ONE BILLION DOLLARS IN ANNUAL COSTS BY NINETEEN NINETY FIVE IN ANNOUNCING THE MOVE MR. DANIELL SAID MR. DAVID HAD DONE AN OUTSTANDING JOB IN MOVING OUR RESTRUCTURING PROGRAM FORWARD AHEAD OF SCHEDULE SOME ANALYSTS WHO GAVE MR. DAVID HIGH MARKS FOR HELPING BRING THE COMPANY'S STOCK BACK ON THE GROWTH PATH SAID THEY WERE A LITTLE SURPRISED BY THE TIMING OF THE ANNOUNCEMENT IT IS BIT SOONER THAN I EXPECTED SAID PHIL FRIEDMAN AN ANALYST AT MORGAN STANLEY IT MEANS THAT MR. DANIELL IS GOING TO FOCUS ON STRATEGIC ISSUES AND MR. DAVID IS GOING TO FOCUS ON OPERATIONS HE SAID MR. DAVID JOINED UNITED TECHNOLOGIES' OTIS ELEVATOR UNIT IN NINETEEN SEVENTY FIVE UNITED TECHNOLOGIES' OTHER BUSINESSES INCLUDE AUTOMOTIVE PRODUCTS JET ENGINES AND HEATING AND AIR CONDITIONING SYSTEMS NED MEARA A BUYER FOR GRAND UNION SUPERMARKETS IN WAYNE N. J. SPENDS MUCH OF HIS DAY FENDING OFF LINE EXTENSIONS FROM THE NATION'S LARGEST CONSUMER PRODUCTS COMPANIES THINGS HAVE GOTTEN SO BAD HE FRETS THAT ONE DAY A SALESMAN WILL PROBABLY OFFER HIM RIGHT AND LEFT HANDED BATHROOM TISSUE PRODUCT LINE EXTENSIONS HAVE LONG BEEN VIEWED AS A CHEAP LOW RISK WAY TO MAKE EXTRA SALES BUT THE OBSESSION WITH ADDING A NEW FLAVOR SIZE OR FORMULATION TO A BRAND IS STARTING TO BACKFIRE LEAVING STORE SHELVES CLOGGED WITH SLOW MOVING PRODUCTS QUOTE IT'S GOTTEN TOTALLY OUT OF CONTROL QUOTE SAYS MR. MEARA LINE EXTENSIONS REPRESENT NEARLY SEVENTY FIVE PERCENT OF NEW PRODUCT INTRODUCTIONS COMPARED WITH SIXTY THREE PERCENT IN NINETEEN NINETY ACCORDING TO MARKETING INTELLIGENCE SERVICE LIMITED LINE EXTENSIONS ARE THE MAJOR REASON WHY BIG BRANDS ARE HURTING SAYS AL RIES CHAIRMAN OF TROUT AND RIES A MARKETING CONSULTING FIRM IN GREENWICH CONNECTICUT EVERYBODY SELLS EVERYTHING AND NOBODY IS MAKING ANY MONEY THE RESULT IS A PARADE OF DOOMED PRODUCTS MR. RIES SAYS INCLUDING LIFE SAVERS GUM A. ONE POULTRY SAUCE CLOROX DETERGENT AND COORS ROCKY MOUNTAIN SPARKLING WATER A FEW COMPANIES ARE PRUNING PRODUCT LINES OR INVESTING IN NEW OFFERINGS SUCH AS UNILEVER'S LEVER TWO THOUSAND SOAP AND SURF DETERGENT BOTH HAVE BEEN FAR MORE SUCCESSFUL THAN MOST LINE EXTENSIONS BUT USUALLY COMPANIES ADD A FLAVOR OR SCENT TO A BRAND RATHER THAN SPEND THE THIRTY MILLION DOLLARS NEEDED TO CREATE ADVERTISE AND SHIP A NEW PRODUCT LINE THE MAIN REASON PRODUCT MANAGERS RESORT TO LINE EXTENSIONS TO GET A QUICK FIX FOR THE NEXT QUARTER SAYS ALBERT TUHY A SENIOR BUYER FOR WALGREEN COMPANY A LARGE DRUGSTORE CHAIN WHILE NEW PRODUCTS HAVE A EIGHTY PERCENT TO NINETY PERCENT FAILURE RATE LINE EXTENSIONS HAVE A HIGHER CHANCE OF SURVIVAL AND WITH LESS INVESTED UP FRONT COMPANIES OFTEN HAVE MORE MODEST SALES GOALS FOR LINE EXTENSIONS MARKETING EXECUTIVES DEFEND LINE EXTENSIONS AS THE BEST WAY TO BUILD A BUSINESS EXECUTIVES AT KIMBERLY CLARK CORPORATION'S KLEENEX UNIT SAY LINE EXTENSIONS HAVE ALLOWED THE BRAND'S VOLUME TO GROW IN A PERIOD OF SLOW POPULATION GROWTH AND INCREASED USE OF OVER THE COUNTER COLD REMEDIES WE TRY TO GET FACIAL TISSUE IN EVERY ROOM OF THE HOME SAYS JAMES BERND EXECUTIVE VICE PRESIDENT OF KIMBERLY CLARK IF IT IS THERE IT WILL GET USED MR. BERND'S PHILOSOPHY HAS LED TO TWENTY VARIETIES OF KLEENEX FACIAL TISSUES INCLUDING LOTION IMPREGNATED TISSUES BOXES WITH NURSERY RHYME DRAWINGS FOR CHILDREN'S ROOMS AND A QUOTE MAN SIZED QUOTE BOX WITH TISSUES SIXTY SIX PERCENT BIGGER THAN REGULAR KLEENEX IN CASE WE HAVE A LUMBERJACK SHOPPING IN OUR STORES QUIPS MR. MEARA THE GRAND UNION BUYER EXECUTIVES AT R. J. R. NABISCO HOLDINGS CORPORATION CONCEDE THAT LINE EXTENSIONS SOMETIMES GET OUT OF HAND ITS A. ONE POULTRY SAUCE WAS A FLOP WE QUICKLY LEARNED THAT A. ONE MEANS BEEF SAYS A NABISCO SPOKESMAN BUT NABISCO HASN'T FORSAKEN LINE EXTENSIONS ITS LATEST OFFERING LIFE SAVERS GELATIN THE BAYER SELECT LINE IS A CLASSIC EXAMPLE OF A POORLY CONCEIVED LINE EXTENSION MR. RIES SAYS IT WAS INTRODUCED IN THE FALL OF NINETEEN NINETY TWO BY EASTMAN KODAK COMPANY'S STERLING WINTHROP DRUG UNIT TO COMBAT THE RAPID GROWTH OF NONASPIRIN PAIN RELIEVERS SUCH AS TYLENOL AND ADVIL BUT THE BAYER NAME HAS BEEN LINKED TO ASPIRIN FOR NEARLY A CENTURY AND TROUT AND RIES SAY ANY NONASPIRIN PRODUCT WITH THE NAME IS LIKELY TO FAIL INDEED BAYER SELECT IS OFF TO A SLOW START DESPITE AN ESTIMATED ONE HUNDRED MILLION DOLLAR MARKETING BUDGET THE BAYER SELECT PAINKILLERS ACCOUNT FOR LESS THAN TWO PERCENT OF THE TWO POINT FOUR SIX BILLION DOLLARS ANALGESIC MARKET ACCORDING TO INFORMATION RESOURCES INCORPORATED'S INFOSCAN SERVICE THE LINE'S SALES WERE FORTY THREE POINT EIGHT MILLION DOLLARS FOR THE FIFTY TWO WEEKS ENDED DECEMBER NINETEENTH THEY HAVE NOT DONE WELL IN RELATIONSHIP TO WHAT THEY SPENT SAYS MR. TUHY THE WALGREEN BUYER STERLING WINTHROP RECENTLY REPLACED THE EXECUTIVE WITH DIRECT RESPONSIBILITY FOR ALL BAYER PRODUCTS IN THE U. S. AND LATE LAST WEEK CHANGED THE BRAND'S AD AGENCY MARKETING EXPERTS SAY BAYER RISKS BLURRING ITS IMAGE AS THE TOP ASPIRIN BY TARGETING TYLENOL AND ADVIL BAYER SELECT IS A BAD IDEA GONE BAD SAYS JACK TROUT PRESIDENT OF TROUT AND RIES BAYER SELECT HAS ELEVEN PRODUCTS EACH FOR EXTREMELY SPECIFIC AILMENTS FROM MENSTRUAL PAIN TO SINUS PAIN TO BACKACHES THE RECENTLY DISMISSED AD AGENCY AYER CREATED THE LINE'S CLUNKY SLOGAN EXACTLY WHAT'S RIGHT FOR EXACTLY WHAT'S WRONG STERLING WON'T COMMENT ON WHETHER THE SLOGAN ALSO WILL BE DROPPED THE AILMENT SPECIFIC PRODUCT LINE IS CONFUSING TO CONSUMERS AND HAS DILUTED STERLING'S MASSIVE PROMOTION OF IT QUOTE BY BREAKING UP THIS MONEY INTO A MILLION DIFFERENT PIECES YOU ARE NOT PUTTING IT BEHIND ANY ONE IDEA TO MAKE IT STICK QUOTE SAYS MR. TROUT WILLIAM G. PIETERSEN PRESIDENT OF STERLING WINTHROP'S CONSUMER HEALTH GROUP NOTES THAT BAYER SELECT HAS A LARGER MARKET SHARE THAN MANY RIVALS STILL HE ACKNOWLEDGES THAT ITS VOLUME GOALS WERE OVERLY AMBITIOUS WE ARE NOT THERE YET HE ADDS THAT IT'S TOO EARLY TO CALL THE RESULTS IN TERMS OF ULTIMATE LEVELS OF SUCCESS STILL MR. TUHY IS CONSIDERING DROPPING SOME BAYER SELECT ITEMS FROM WALGREEN STORES HE SAYS MANUFACTURERS ARE GETTING MORE CAUTIOUS ABOUT JAMMING LINE EXTENSIONS INTO STORES GIVEN THE EXPENSE OF SHIPPING PRODUCTS THAT DON'T SELL AT LEAST MR. TUHY HOPES SO OUR STORES AREN'T GETTING ANY BIGGER HE SAYS DRYLY FORMER CHRYSLER CORPORATION CHAIRMAN LEE IACOCCA SAYS HE IS FORMING A NEW MERCHANT BANK LOOKING FOR DEALS IN THE ENTERTAINMENT AIRLINE AND GAMING INDUSTRIES AND HAS GOTTEN ADVICE FROM LONG TIME FRIEND AND BILLIONAIRE INVESTOR KIRK KERKORIAN MR. IACOCCA SAID YESTERDAY IN A TELEPHONE INTERVIEW FROM HIS LOS ANGELES HOME THAT MR. KERKORIAN ISN'T FINANCIALLY INVOLVED WITH THE NEW VENTURE QUOTE I HOPE ONE DAY KIRK WILL BE INVOLVED WITH THE COMPANY QUOTE MR. IACOCCA SAID I'VE LEARNED A LOT FROM HIM I GOT INTERESTED IN ENTERTAINMENT AIRLINES AND GAMING BECAUSE OF KIRK MR. IACOCCA PLANS TO FORMALLY ANNOUNCE HIS NEW VENTURE IACOCCA CAPITAL PARTNERS TODAY WITH HIMSELF AS THE LARGEST OWNER DEALS WILL BE FINANCED BY MR. IACOCCA AND HIS TWO PRINCIPAL PARTNERS BUT MAY ALSO INCLUDE INVESTMENTS FROM PENSION FUNDS AND AFFLUENT INVESTORS HE SAID JEFFERIES GROUP INCORPORATED A LOS ANGELES BASED INVESTMENT CONCERN WILL PROVIDE SECURITIES TRADING AND INVESTMENT BANKING SUPPORT AND HOLD A MINORITY STAKE MR. IACOCCA WOULDN'T SAY HOW MUCH OF HIS OWN MONEY HE HAS INVESTED IN THE NEW COMPANY I'VE INVESTED QUITE A BIT HE SAID I'VE SOLD A LOT OF CHRYSLER STOCK AND I INVESTED SOME OF IT IN THE NEW COMPANY ANOTHER PARTNER MICHAEL KLEIN SAID THE VENTURE WILL HAVE THE POTENTIAL TO DO MULTI HUNDRED MILLION DOLLAR TRANSACTIONS MR. KLEIN WHO SET UP HIS OWN BEVERLY HILLS CALIFORNIA FIRM LAST YEAR WORKED FOR MANY YEARS AS AN INVESTMENT ADVISER AND BROKER AT BEAR STEARNS AND COMPANY IN NINETEEN EIGHTY SEVEN HE HELPED TO ESTABLISH THE FIRM'S MEDIA AND ENTERTAINMENT GROUP WHICH HANDLED DEALS FOR MANY HOLLYWOOD STUDIOS INCLUDING M. G. M. SLASH U. A. ENTERTAINMENT COMPANY A PREDECESSOR OF METRO GOLDWYN MAYER INCORPORATED THAT WAS CONTROLLED AT THE TIME BY MR. KERKORIAN THE THIRD PARTNER IS WILLIAM S. ELKUS A LOS ANGELES MONEY MANAGER WHO REPRESENTS SOME OF THE NATION'S WEALTHIEST FAMILIES MR. IACOCCA SAID THE GROUP DOESN'T HAVE ANY VENTURES TO ANNOUNCE YET BUT IS COMPLETING A DEAL WITH A SMALL SOFTWARE COMPANY TRYING TO SELL INTERACTIVE TELEVISION SYSTEMS TO AIRLINES THE RELATIONSHIP BETWEEN MESSRS KERKORIAN AND IACOCCA DATES FROM NINETEEN EIGHTY NINE WHEN CHRYSLER EXPLORED SELLING A NONAUTOMOTIVE UNIT TO MR. KERKORIAN WHO IN TURN ASKED CHRYSLER TO BUY INTO FILM STUDIOS HE WAS LOOKING TO SELL NEITHER DEAL WORKED OUT BUT MR. KERKORIAN EVENTUALLY BOUGHT CHRYSLER STOCK WHICH HAS GROWN TO A EIGHT POINT NINE PERCENT STAKE WITH A MARKET VALUE OF NEARLY TWO BILLION DOLLARS MR. IACOCCA ALSO IS A DIRECTOR OF M. G. M. GRAND INCORPORATED A LAS VEGAS HOTEL AND CASINO COMPANY THAT IS SEVENTY SIX PERCENT OWNED BY MR. KERKORIAN LAST YEAR MR. IACOCCA SOLD ONE POINT TWO MILLION CHRYSLER SHARES AT AN INDICATED VALUE OF FIFTY THREE POINT THREE MILLION DOLLARS ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS MR. IACOCCA NOW SIXTY NINE YEARS OLD RETIRED AS CHRYSLER'S CHAIRMAN IN DECEMBER NINETEEN NINETY TWO BUT REMAINS A CONSULTANT TO THE AUTO MAKER UNTIL JANUARY NINETEEN NINETY FIVE HE WILL BE CHAIRMAN OF THE NEW INVESTMENT VENTURE A. BREAN MURRAY WAS NAMED A DIRECTOR OF THIS FINANCIAL SERVICES COMPANY EXPANDING ITS BOARD TO SIX MEMBERS MR. MURRAY FIFTY SIX YEARS OLD IS CHAIRMAN OF BREAN MURRAY FOSTER SECURITIES INCORPORATED BANK OF BOSTON CORPORATION SAID IT COMPLETED THE PREVIOUSLY REPORTED SALE OF THE DOMESTIC PORTION OF ITS FACTORING BUSINESS TO BANK OF NEW YORK COMPANY FOR A PRETAX GAIN OF TWENTY SEVEN MILLION DOLLARS IN ITS FIRST QUARTER BANK OF BOSTON SAID IT EXPECTS AN ADDITIONAL SMALL PRETAX GAIN ON THE SALE OF THE CANADIAN PORTION OF THE BUSINESS WHICH IT EXPECTS TO COMPLETE LATER THIS YEAR AFTER RECEIPT OF REGULATORY APPROVALS FOR ITS NINETEEN NINETY THREE FIRST QUARTER THE COMPANY REPORTED NET OF SIXTY SEVEN POINT FOUR MILLION DOLLARS OR SIXTY SEVEN CENTS A SHARE AFTER A SEVENTEEN POINT TWO MILLION DOLLAR GAIN RELATED TO AN ACCOUNTING CHANGE SEEKING TO BREAK AN IMPASSE WITH JAPAN ON TRADE U. S. TRADE REPRESENTATIVE MICKEY KANTOR TRAVELED TO TOKYO TO PRESS JAPANESE CABINET OFFICIALS TO INTERVENE IN THE TALKS U. S. OFFICIALS SAID THEY WANTED TO MOVE QUICKLY TO SEE WHETHER PRIME MINISTER MORIHIRO HOSOKAWA'S SUCCESS IN PUSHING THROUGH ELECTORAL REFORM WOULD PROMPT TOKYO TO COMPROMISE IN THE SO CALLED FRAMEWORK TRADE TALKS MR. HOSOKAWA'S VICTORY IN JAPAN'S PARLIAMENT LAST WEEK QUOTE GETS POLITICAL REFORM BEHIND HIM SO NOW HE CAN FOCUS ON ECONOMIC ISSUES WITH THE U. S. QUOTE SAID ROBERT RUBIN DIRECTOR OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL BUT IT'S UNCLEAR HOW FAR JAPAN WILL MOVE U. S. OFFICIALS HAVE COMPLAINED THAT NEGOTIATORS FROM JAPAN'S POWERFUL MINISTRIES HAVE BLOCKED COMPROMISE SO THE U. S. IS SEEKING THE INVOLVEMENT OF JAPANESE CABINET OFFICIALS THE NEGOTIATORS' NOMINAL BOSSES WHO PRESUMABLY WOULD MAKE CONCESSIONS RATHER THAN FACE A CONFRONTATION WITH JAPAN'S MOST POWERFUL ALLY BUT IN PUBLIC COMMENTS MR. HOSOKAWA HAS BACKED THE BUREAUCRATS' RESISTANCE TO U. S. DEMANDS THAT JAPAN AGREE TO NUMERICAL TARGETS FOR IMPORT PURCHASES ON SUNDAY PRESIDENT CLINTON TELEPHONED MR. HOSOKAWA CONGRATULATED HIM ON HIS VICTORY AND SAID HE WAS SENDING MR. KANTOR AS HIS PERSONAL REPRESENTATIVE TO TOKYO U. S. OFFICIALS SAID BOWMAN CUTTER DEPUTY DIRECTOR OF THE NATIONAL ECONOMIC COUNCIL WHO IS THE LEAD U. S. NEGOTIATOR IN THE FRAMEWORK TALKS IS ACCOMPANYING MR. KANTOR THE PAIR IS EXPECTED TO MEET WITH MR. HOSOKAWA AND SENIOR MEMBERS OF HIS CABINET THE U. S. SIDE ISN'T EXPECTED TO UNVEIL ANY NEW TRADE PROPOSALS AT THESE MEETINGS BUT WILL PRESS JAPAN TO SHOW MORE FLEXIBILITY IF THE TALKS GO WELL THE REST OF THE U. S. NEGOTIATING TEAM IS EXPECTED IN TOKYO FOR TALKS AT THE END OF THE WEEK BUT IF THE IMPASSE PERSISTS U. S. NEGOTIATORS MAY REMAIN AT HOME SENDING A MESSAGE TO TOKYO THAT THE U. S. WILL WALK AWAY FROM A DEAL UNLESS JAPAN BENDS ANOTHER POSSIBILITY IS THAT JAPAN'S TRADE NEGOTIATORS WILL HOLD FOLLOW UP TALKS IN WASHINGTON WHERE THEY CAN ESCAPE SOME OF THE DOMESTIC PRESSURE AGAINST CONCESSIONS THE TWO SIDES ARE SUPPOSED TO STRIKE A DEAL BY FEBRUARY ELEVENTH WHEN MR. HOSOKAWA COMES TO WASHINGTON FOR A SUMMIT MEETING IN JULY AFTER WEEKS OF WRANGLING THE U. S. AND JAPAN AGREED TO USE QUANTITATIVE INDICATORS TO MEASURE WHETHER JAPAN IS OPENING ITS MARKETS BUT THE TWO SIDES INTERPRET THAT AGREEMENT MUCH DIFFERENTLY JAPAN SAYS IT IS WILLING TO TRACK IMPORT DATA ONLY AS A WAY TO DIAGNOSE TRADE PROBLEMS SOZABURO OKAMATSU VICE MINISTER OF JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID THAT A PANEL OF ECONOMISTS BUSINESS OFFICIALS AND JOURNALISTS SHOULD INTERPRET THE DATA AND MAKE SUGGESTIONS TO THE GOVERNMENTS FOR FURTHER ACTION BUT THE U. S. NEGOTIATORS COMPLAIN THAT WOULD LEAD TO INACTION AND DELAY INSTEAD THE U. S. WANTS JAPAN TO COMMIT TO IMPORT GOALS AS WELL AS INDICATORS TO MEASURE PROGRESS TOWARD THOSE GOALS IN AUTO PARTS FOR INSTANCE JAPANESE CAR MAKERS HAVE SAID THEY WOULD BUY NINETEEN BILLION DOLLARS IN U. S. PARTS BY THE YEAR ENDING MARCH THIRTY FIRST NINETEEN NINETY FIVE THE U. S. WANTS A JAPANESE COMMITMENT TO INCREASE THOSE PURCHASES BY ABOUT TWENTY PERCENT A YEAR FOR THE FOLLOWING THREE TO FOUR YEARS IN GOVERNMENT PROCUREMENT U. S. GOALS ARE LESS SPECIFIC GENERALLY THE U. S. WANTS JAPAN'S IMPORT LEVELS TO MOVE IN THE DIRECTION OF OTHER BIG INDUSTRIALIZED COUNTRIES IN TELECOMMUNICATIONS THE U. S. ESTIMATES THE SIX BIGGEST WESTERN ECONOMIES IMPORT ABOUT TWENTY FIVE PERCENT OF THEIR EQUIPMENT JAPAN'S IMPORTS TOTAL ONLY FIVE PERCENT SO FAR THOUGH THE U. S. HASN'T TOLD TOKYO SPECIFICALLY WHAT RATE OF INCREASE IT IS SEEKING JAPAN HASN'T EVEN AGREED TO THE CONCEPT OF IMPORT GOALS AND THE TWO SIDES ALSO ARE FAR APART ON THE QUESTION OF INDICATORS IN THE AREA OF INSURANCE FOR EXAMPLE U. S. OFFICIALS SAID THEY HAD PROPOSED MEASURING THE FOREIGN PENETRATION OF THE JAPANESE MARKET THE NUMBER OF APPLICATIONS FOR NEW PRODUCTS APPROVED BY THE JAPANESE GOVERNMENT AND THE PERCENTAGE OF THOSE APPROVALS THAT ARE GRANTED TO FOREIGN COMPANIES THE JAPANESE RESPONDED BY PROPOSING TO TRACK THE NUMBER OF FOREIGN INSURANCE COMPANIES IN JAPAN THAT HAVE JAPANESE SPEAKING EXECUTIVES DURING TALKS IN WASHINGTON LAST WEEK MR. CUTTER TRIED TO BREAK THE STALEMATE BY SUGGESTING THAT TWO SIDES PUT ASIDE THEIR DISPUTE OVER IMPORT GOALS FOR THE TIME BEING AND CONCENTRATE INSTEAD ON THE INDICATORS BUT NEGOTIATORS SAID THE JAPANESE TURNED HIM DOWN BECAUSE THEY FEARED COMPROMISING ON THE MEASUREMENTS WOULD INEVITABLY LEAD TO AN ACCEPTANCE OF IMPORT GOALS JAPANESE NEGOTIATORS SAY SUCH IMPORT TARGETS WOULD REQUIRE HEAVY GOVERNMENT INTERVENTION AT A TIME WHEN JAPAN WANTS TO DEREGULATE THE ECONOMY THE U. S. DOESN'T TRUST JAPAN TO DO THINGS WITHOUT NUMBERS SAID I. M. DESTLER A JAPAN TRADE EXPERT AT THE UNIVERSITY OF MARYLAND AND JAPAN DOESN'T TRUST THE U. S. WITH NUMBERS TAKECARE INCORPORATED DENIED ALLEGATIONS BY A SHAREHOLDER GROUP THAT IT IMPROPERLY INDUCED MANAGEMENT TO SUPPORT A PROPOSED SALE OF THE COMPANY TO F. H. P. INTERNATIONAL CORPORATION TAKECARE SAID IN A FILING WITH THE DELAWARE CHANCERY COURT LAST WEEK THAT BONUSES OFFERED TO R. JUDD JESSUP TAKECARE PRESIDENT AND BOARD MEMBER AND OTHERS WEREN'T CONNECTED WITH F. H. P.'S OFFER THE COMPANY SAID A REPRESENTATIVE OF THE SHAREHOLDER GROUP ON ITS BOARD APPROVED THE BONUSES THE SHAREHOLDERS LED BY INVESTOR HENRY L. HILLMAN COLLECTIVELY OWN TWENTY TWO PERCENT OF TAKECARE'S STOCK LAST MONTH THE GROUP FILED SUIT IN THE DELAWARE COURT SEEKING TO BLOCK AN EIGHT HUNDRED TWENTY NINE MILLION DOLLAR ACQUISITION OFFER BY F. H. P. OF FOUNTAIN VALLEY CALIFORNIA BOTH TAKECARE AND F. H. P. ARE HEALTH MAINTENANCE ORGANIZATIONS TAKECARE'S FILING ALSO DENIED THE HILLMAN GROUP'S ALLEGATION THAT TAKECARE'S CHAIRMAN JACK R. ANDERSON FAILED TO MAXIMIZE SHAREHOLDER VALUE IN HIS HANDLING OF F. H. P.'S BID THE COMPANY SAID MR. ANDERSON BOOSTED THE VALUE OF THE F. H. P. OFFER BY SEVENTY MILLION DOLLARS BANCOL S. A. SAID IT PURCHASED A MAJORITY STAKE IN BANCO DE COLOMBIA CLOSING THE PRIVATIZATION OF THE COLOMBIAN BANK IN A TRANSACTION VALUED AT MORE THAN THREE HUNDRED SIXTY MILLION DOLLARS BANCOL A BOGOTA COLOMBIA HOLDING COMPANY OWNED BY INDUSTRIAL AND BANKING INVESTORS ISAAC AND JAIME GILINSKI SAID IT PURCHASED AND WILL HOLD THE SEVENTY FIVE PERCENT BANCO DE COLOMBIA STAKE BANCO DE COLOMBIA HAS ASSETS OF TWO BILLION DOLLARS SIX THOUSAND TWO HUNDRED EMPLOYEES TWO HUNDRED FORTY SIX BRANCHES IN COLOMBIA A BANK IN PANAMA A BANK IN THE CAYMAN ISLANDS AND FIVE BRANCH EAGLE NATIONAL BANK IN MIAMI SENATOR DAVID PRYOR RELEASED A REPORT THAT SAID THE PHARMACEUTICAL INDUSTRY CONTINUED TO RAISE SOME PRICES OF FREQUENTLY PRESCRIBED DRUGS FAR MORE THAN THE OVERALL INFLATION RATE LAST YEAR THE FINDINGS OF THE REPORT PREPARED BY THE SENATE SPECIAL COMMITTEE ON AGING QUOTE CALL INTO QUESTION THE ABILITY OF THE MARKETPLACE TO CONTAIN DRUG PRICES QUOTE SENATOR PRYOR D. ARKANSAS SAID ALTHOUGH DRUG PRICE INFLATION IN THE AGGREGATE MODERATED LAST YEAR AVERAGE WHOLESALE PRICES OF MORE THAN TWO THIRDS OF THE TWO HUNDRED MOST FREQUENTLY PRESCRIBED OUTPATIENT DRUGS ROSE MORE THAN THE TWO POINT SEVEN PERCENT INCREASE IN THE CONSUMER PRICE INDEX ACCORDING TO THE REPORT A SPOKESMAN FOR THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION CONCEDED THAT PRICES OF SOME INDIVIDUAL DRUGS ROSE FASTER THAN THE CONSUMER PRICE INDEX BUT HE ARGUED THAT INDUSTRY'S PRICE INCREASES SHOULD BE VIEWED IN THE AGGREGATE ACROSS ALL PRODUCTS AND ALL CUSTOMERS SUCH A COMPARISON WOULD SHOW THAT DRUG PRICE INCREASES HAVE MODERATED TO THREE POINT ONE PERCENT SENATOR PRYOR'S REPORT IDENTIFIED THE TWO POINT FIVE MILLIGRAM DOSE OF LOZOL A HEART DRUG MADE BY RHONE POULENC RORER INCORPORATED AS HAVING THE HIGHEST PRICE INCREASE AT TWENTY ONE PERCENT THE SECOND HIGHEST INCREASE AT THIRTEEN PERCENT WAS FOR A TWO HUNDRED MILLIGRAM DOSE OF ZOVIRAX AN ANTIVIRAL BY BURROUGHS WELLCOME COMPANY A UNIT OF WELLCOME P. L. C. LORCET PLUS A PAIN KILLER MADE BY UAD LABORATORIES A UNIT OF FOREST LABORATORIES INCORPORATED WAS LISTED WITH A TWELVE PERCENT INCREASE A RHONE POULENC RORER SPOKESMAN DISPUTED THE REPORT'S RATE OF INCREASE FOR LOZOL HE SAID THE COMPANY INCREASED THE PRICE OF LOZOL BY FIVE PERCENT IN JUNE AND SIX PERCENT IN DECEMBER AFTER DISCOUNTS AND PROMOTIONS IN DECEMBER THE LATEST NET PRICE CHANGE WAS A NEGATIVE TWO PERCENT HE SAID THE COMPANY LAST YEAR INTRODUCED A LOWER DOSE VERSION THAT HAD A TWENTY PERCENT LOWER PRICE HE ADDED OVERALL PRICES FOR RHONE POULENC RORER PRODUCTS ROSE TWO POINT THREE PERCENT IN THE U. S. LAST YEAR THE SPOKESMAN SAID A SPOKESMAN FOR FOREST ALSO DISPUTED THE REPORT'S FIGURES BUT SAID HE COULDN'T PROVIDE THE ACTUAL NUMBERS OR COMMENT ON THE REPORT WHICH HE SAID HE HADN'T SEEN THE REPORT USED AVERAGE WHOLESALE PRICES THE EQUIVALENT OF LIST PRICES THAT MANUFACTURERS SUGGEST WHOLESALERS USE WHEN SELLING THEIR PRODUCTS TO COMMUNITY PHARMACISTS THE PRICES DON'T REFLECT ACTUAL PRICES PAID AFTER DISCOUNTS OR PRICES PAID BY HOSPITALS OR MANAGED CARE GROUPS WHICH CAN EXERT FAR MORE CLOUT THAN COMMUNITY PHARMACIES WHEN NEGOTIATING PRICES MARY AGNES CAREY IN WASHINGTON CONTRIBUTED TO THIS ARTICLE OLD KENT FINANCIAL CORPORATION'S BOARD SELECTED FOUR HUNDRED FORTY FINANCIAL GROUP OF WORCESTER INCORPORATED TO UNDERWRITE ADMINISTER AND DISTRIBUTE KENT FUNDS THE COMPANY SAID FOUR HUNDRED FORTY FINANCIAL BASED IN WORCESTER MASSACHUSETTS IS A SUBSIDIARY OF STATE MUTUAL LIFE ASSURANCE COMPANY OF AMERICA IN A NEWS RELEASE OLD KENT SAID THE TEN EQUITY BOND AND MONEY MARKET MUTUAL FUNDS HAVE ASSETS OF ABOUT TWO POINT THREE BILLION DOLLARS AT GLEN RIDGE HIGH SCHOOL IN NEW JERSEY STUDENTS WHO WANT TO TAKE PART IN SPORTS OR OTHER EXTRA CURRICULAR ACTIVITIES ARE REQUIRED TO SIGN A PLEDGE THAT THEY'LL REFRAIN FROM USING DRUGS OR ALCOHOL FURTHER THEY PLEDGE NOT TO GET INVOLVED IN ANY ACTIVITY THAT VIOLATES THE CRIMINAL CODE THE PRINCIPAL OF GLEN RIDGE HIGH NOTES THAT THIS LONGSTANDING POLICY IN EFFECT IN MANY OTHER SCHOOLS HAS ALWAYS MET WITH APPROVAL AND SUPPORT FROM STUDENTS AND NOT SURPRISINGLY PARENTS ALIKE SO FAR SO GOOD EXCEPT THAT THE AMERICAN CIVIL LIBERTIES UNION OF NEW JERSEY HAS RECENTLY CHARGED THE SCHOOL WITH QUOTE UNCONSTITUTIONAL QUOTE BEHAVIOR A. C. L. U. ATTORNEY MARSHA WENK INFORMED US THAT THE CASE CAME DOWN TO THE QUESTION OF STUDENTS' RIGHTS JUST BECAUSE MS. WENK EXPLAINED THERE ARE PROBLEMS IN THE SCHOOLS IS NO REASON FOR VIOLATING RIGHTS OF STUDENTS IN ITS ABILITY TO DISCOVER NEW CONSTITUTIONAL RIGHTS THE A. C. L. U. IS OF COURSE SECOND TO NONE IN A CROWDED FIELD STILL IT IS AFTER ALL ILLEGAL TO TAKE DRUGS AND INDEED IN THE STATE OF NEW JERSEY FOR PEOPLE UNDER THE AGE OF EIGHTEEN TO SMOKE ADMINISTRATORS AT GLEN RIDGE HIGH POINT OUT THAT THEY ARE ASKING NO MORE THAN THAT STUDENTS SIGNING ON FOR SPORTS OR SIMILAR ACTIVITIES HONOR THE RULES OF TRAINING AND OF CITIZENSHIP THE A. C. L. U. OF NEW JERSEY IS PARTICULARLY AGITATED OVER THE ISSUE OF DISCIPLINING PUPILS FOR BEHAVIOR THAT TAKES PLACE OFF SCHOOL GROUNDS OR AS THE A. C. L. U. REPRESENTATIVE PUT IT THE SCHOOL'S EFFORT TO EXTEND THE SCOPE OF CONTROL OVER STUDENTS' LIVES IN THE WORLD OF THE CIVIL LIBERTARIAN BRIGADES THE DARK FORCES OF REPRESSION ARE ALWAYS IN THE WINGS IN TRUTH THERE ARE FORCES OF REPRESSION THE KIND RESPONSIBLE FOR THE CURRENT THREAT TO FREE SPEECH AND ACADEMIC FREEDOM AT WORK IN OUR SCHOOLS AND ON CAMPUSES TODAY REPRESSION HOWEVER HAS NOTHING TO DO WITH WHAT GLEN RIDGE HIGH'S POLICY IS ALL ABOUT THE SCHOOL HAS DONE ITS CHARGES THE HONOR OF EXPECTING THEM TO KEEP PLEDGES UPHOLD AGREED UPON STANDARDS OF LEGAL BEHAVIOR AND ALSO OF MAINTAINING AN ACCEPTABLE ACADEMIC GRADE TO CONFRONT ANYTHING LIKE EXACTING STANDARDS AND EXPECTATIONS IS FOR MANY YOUNG PEOPLE A WELL NIGH EXOTIC EXPERIENCE NOWADAYS NO WONDER GLEN RIDGE STUDENTS GAVE THE SCHOOL POLICY THEIR WHOLE HEARTED SUPPORT THE ISSUE REACHED THE ATTENTION OF THE A. C. L. U. THIS FALL WHEN ONE PERSON WHO SIGNED THE CONTRACT WAS ARRESTED FOR UNDERAGE DRINKING WHICH IN TURN CAUSED THE SCHOOL TO ENFORCE THE TERMS OF AGREEMENT THAT AGREEMENT SAYS THAT STUDENTS WHO SIGN THE PLEDGE AND VIOLATE ITS CONDITIONS ARE TEMPORARILY PROHIBITED FROM ENGAGING IN SPORTS CHEERLEADING OR ANY OTHER SUCH AFTERSCHOOL ACTIVITIES DURING THIS PERIOD OF SUSPENSION THEY ARE ALSO REQUIRED TO MEET WITH SCHOOL ADVISERS FOR COUNSELING THE A. C. L. U.'S CHARGE THAT THE SCHOOL THAT SEEKS TO INFLUENCE OUT OF SCHOOL BEHAVIOR IS BEING COERCIVE IS A PERFECT EXAMPLE OF THE KIND OF ABSTRACT HIGH PRINCIPLE THAT HAS UNHINGED SANITY AND COMMON SENSE IN OUR TIME IT IS OF A PIECE WITH THE KIND OF REASONING THAT CAUSED THE DE INSTITUTIONALIZATION OF THE MENTALLY ILL WHO ARE NOW THANKS TO CIVIL LIBERTARIANS NO LONGER COERCED INTO TAKING MEDICATION OR CONFINED WHERE THEY CAN DO NEITHER THEMSELVES NOR OTHERS ANY HARM BUT ARE NOW FREE TO LIVE IN DOORWAYS IN SQUALOR AND DEGRADATION TO HEAR FURTHERMORE OBJECTIONS TO A SCHOOL'S EFFORTS TO INFLUENCE OUT OF SCHOOL BEHAVIOR IS ESPECIALLY STRANGE IN AN AGE WHEN SCHOOLS ARE CALLED UPON TO DO EVERYTHING FOR STUDENTS THAT ONCE WAS THE DUTY OF PARENTS INCLUDING GIVING INSTRUCTION IN SEXUAL PRACTICE AND MORALITY QUOTE SCHOOLS DON'T HAVE THE AUTHORITY TO CONTROL ACTIVITIES OUTSIDE OF SCHOOLS QUOTE ARGUES THE A. C. L. U. OF NEW JERSEY THE A. C. L. U. MIGHT WANT TO TRY TELLING THAT TO THE PEOPLE HANDING OUT CONDOMS IN THE SCHOOLS THE FEDERAL TRADE COMMISSION SAID IT WANTS TO BLOCK A HOSPITAL MERGER IN PUEBLO COLORADO ON ANTITRUST GROUNDS IN A MOVE THAT MAY HAVE MAJOR IMPLICATIONS FOR OTHER HOSPITALS' CONSOLIDATION PLANS DURING THE PAST SIXTEEN MONTHS U. S. HOSPITALS HAVE BEEN NEGOTIATING MERGERS AT AN UNUSUALLY BRISK RATE THE TREND HAS BEEN FUELED BY AN INDUSTRY WIDE BELIEF THAT MERGERS WILL HELP HOSPITALS TO CUT COSTS HOSPITAL EXECUTIVES ALSO WANT TO JOIN FORCES IN THE HOPES OF BOOSTING THEIR CLOUT IN DEALING WITH LARGE INSURERS AND ANY CHANGES BROUGHT ABOUT BY THE WHITE HOUSE PUSH FOR HEALTH CARE REFORM IN THE PUEBLO CASE HOWEVER THE F. T. C. CONTENDED THAT THE MERGER WOULD QUOTE SUBSTANTIALLY LESSEN COMPETITION QUOTE IN HOSPITAL SERVICES FOR PUEBLO COUNTY COLORADO THE PROPOSED MERGER WOULD UNITE THE COUNTY'S ONLY TWO HOSPITALS MARK WHITENER THE ACTING DEPUTY DIRECTOR OF THE F. T. C.'S BUREAU OF COMPETITION ADDED IT'S OUR BELIEF THAT THIS MERGER WOULD CAUSE PRICES TO CONSUMERS TO RISE THE F. T. C.'S ACTION WAS QUICKLY ASSAILED BY THE AMERICAN HOSPITAL ASSOCIATION A TRADE GROUP THAT REPRESENTS ALMOST FIVE THOUSAND U. S. HOSPITALS THE HOSPITAL GROUP CALLED THE ANTITRUST CASE A CHILLING MESSAGE TO HOSPITALS TRYING TO REDUCE DUPLICATION OF SERVICES AND SERVE THEIR COMMUNITIES MORE COST EFFICIENTLY EXECUTIVES OF THE TWO HOSPITALS INVOLVED IN THE PROPOSED MERGER ALSO VOICED DISMAY OVER THE F. T. C.'S DECISION THOSE HOSPITALS ARE THREE HUNDRED TWENTY SIX BED SAINT MARY CORWIN HOSPITAL AND PARKVIEW EPISCOPAL MEDICAL CENTER A TWO HUNDRED TWENTY NINE BED FACILITY IN A JOINT STATEMENT THE TWO HOSPITALS CONTENDED THAT THEY COULD FACE SERIOUS FINANCIAL DIFFICULTIES IF THE MERGER DOESN'T GO THROUGH THE HOSPITALS ADDED THAT THEY FOUND THE GOVERNMENT'S OVERALL STAND ON HEALTH CARE MERGERS VERY CONFUSING LAST WEEK THE JUSTICE DEPARTMENT GAVE ITS GO AHEAD TO A MERGER IN A DIFFERENT TWO HOSPITAL TOWN MANCHESTER N. H. MEANWHILE THE CLINTON ADMINISTRATION HAS SPELLED OUT PLANS FOR SWEEPING HEALTH SYSTEM REFORM WHICH IN AT LEAST SOME RESPECTS WOULD CONCENTRATE POWER IN THE HANDS OF LARGE ENTITIES TO PURSUE ITS ANTITRUST CASE THE F. T. C. SAID IT WILL SEEK A PRELIMINARY INJUNCTION IN DENVER FEDERAL COURT BLOCKING THE MERGER IF THE F. T. C. WINS SUCH AN INJUNCTION THE HOSPITALS SAID THEY COULD EITHER FIGHT THE CASE IN COURT DECIDE TO COLLABORATE ON A SMALLER SCALE OR ABANDON MERGER PLANS ENTIRELY HOSPITAL ANTITRUST SPECIALISTS SAY THEY WILL BE WATCHING THE PUEBLO CASE CLOSELY TO SEE IF IT SHEDS NEW LIGHT ON TWO LEGAL ISSUES THAT OFTEN COME UP IN HOSPITAL MERGER CASES ONE CONTENTIOUS ISSUE INVOLVES THE SIZE OF THE MARKET IN WHICH THE HOSPITALS COMPETE THE F. T. C. STAFF IS PRESSING FOR A NARROW DEFINITION ARGUING THAT THE HOSPITALS HAVE A MONOPOLY IN PUEBLO COUNTY THE HOSPITALS HAVE ARGUED FOR A BROADER VIEW CONTENDING THAT THEY MAY SOON COMPETE WITH HOSPITALS IN DENVER AND COLORADO SPRINGS FOR PATIENTS STOCKS SOARED TO HIGHS AFTER A SURPRISINGLY UPBEAT REPORT ON THE ECONOMY FROM FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN MOVING WITHIN STRIKING DISTANCE OF THE FOUR THOUSAND MARK THE DOW JONES INDUSTRIAL AVERAGE JUMPED THIRTY TWO POINT NINE THREE POINTS TO THREE THOUSAND NINE HUNDRED SEVENTY EIGHT POINT THREE SIX ITS THIRD STRAIGHT RECORD STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX ALSO ROLLED TO A HIGH CLIMBING TWO POINT NINE ONE TO FOUR HUNDRED EIGHTY ONE POINT SIX ONE AND THE NASDAQ COMPOSITE INDEX GAINED THREE POINT NINE FOUR POINTS TO EIGHT HUNDRED POINT FOUR SEVEN ANOTHER RECORD TRADING WAS EXTREMELY HEAVY VOLUME ON THE NEW YORK STOCK EXCHANGE SWELLED TO THREE HUNDRED TWENTY TWO MILLION SEVEN HUNDRED FIFTY THOUSAND SHARES FROM THREE HUNDRED TWELVE MILLION SIX HUNDRED THIRTY THOUSAND SHARES FRIDAY ACCORDING TO THE NEW YORK STOCK EXCHANGE JANUARY AS A WHOLE WAS THE BUSIEST MONTH ON RECORD FOR THE BIG BOARD WITH TOTAL VOLUME OF AROUND SIX POINT SIX BILLION SHARES OCTOBER NINETEEN EIGHTY SEVEN THE MONTH OF THE STOCK MARKET CRASH HAD BEEN THE BUSIEST AT SIX POINT ONE BILLION SHARES ADVANCING ISSUES OUTNUMBERED DECLINERS ONE THOUSAND THREE HUNDRED NINETY SIX TO SEVEN HUNDRED THIRTY THREE STOCKS ANALYSTS SAID THAT WHILE THE EQUITY MARKET WAS POISED FOR A RALLY AFTER FRIDAY'S STRONG REPORT ON FOURTH QUARTER GROSS DOMESTIC REPORT YESTERDAY'S GAINS WERE HELPED BY MR. GREENSPAN QUOTE GREENSPAN'S TESTIMONY ABOUT THE ECONOMY WAS EXTREMELY UPBEAT QUOTE SAID STEFAN ABRAMS DIRECTOR OF EQUITY STRATEGY AT TRUST COMPANY OF THE WEST ADDED JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS FOR THE STOCK MARKET I SUSPECT THE MOST IMPORTANT ELEMENT WAS THE OPTIMISTIC VIEW OF THE SUSTAINABILITY OF ECONOMIC GROWTH THAT WAS OFFERED BY GREENSPAN ALTHOUGH STOCK PRICES CLEARLY WERE FIRED UP BY MR. GREENSPAN'S COMMENTS BEFORE THE JOINT ECONOMIC COMMITTEE THE STAGE FOR A RALLY IN STOCKS WAS SET HOURS EARLIER IN TOKYO WHERE THE NIKKEI STOCK AVERAGE ROCKETED AFTER THE JAPANESE PARLIAMENT ENDORSED A SERIES OF POLITICAL REFORM BILLS IN ADDITION ANALYSTS SAID THERE WERE SEVERAL POSITIVE DEVELOPMENTS ON THE CORPORATE FRONT THAT HELPED UNLEASH THE POWERFUL GAINS IN STOCKS NEWS THAT THE MAJOR ALUMINUM PRODUCING NATIONS AGREED TO CUT GLOBAL PRODUCTION BOOSTED ALUMINUM STOCKS DRIVING ALUMINUM COMPANY OF AMERICA A COMPONENT OF THE DOW UP TWO AND SEVEN EIGHTHS TO SEVENTY NINE AND ONE EIGHTH INVESTORS ARE BETTING THAT ALUMINUM PRICES AFTER BEING DEPRESSED FOR SEVERAL YEARS WILL FIRM UP IN THE WAKE OF A PRODUCTION CUTBACK AUTO STOCKS JUMPED ON REPORTS THAT AUTO MAKERS ARE EXPECTED TO EXTINGUISH CASH REBATES FOR NEW CAR BUYERS BECAUSE THE STRENGTHENING ECONOMY IS LIKELY TO CONTINUE TO SPUR RISING DEMAND CHRYSLER RACED ONE AND FIVE EIGHTHS POINT HIGHER TO SIXTY ONE AND ONE HALF FORD ONE AND THREE QUARTERS TO SIXTY SEVEN AND GENERAL MOTORS TWO TO SIXTY ONE AND ONE QUARTER INVESTORS NODDED FAVORABLY AFTER UNITED TECHNOLOGIES NAMED PRESIDENT AND CHIEF OPERATING OFFICER GEORGE DAVID CHIEF EXECUTIVE UNITED TECHNOLOGIES SURGED TWO AND THREE EIGHTHS TO SIXTY SEVEN AND THREE EIGHTHS STOCK BUYERS ALSO LIKED AETNA LIFE AND CASUALTY'S MOVE FRIDAY TO ELIMINATE FOUR THOUSAND JOBS OR TEN PERCENT OF ITS WORK FORCE AETNA ADDED THREE AND ONE HALF POINTS TO SIXTY THREE AND THREE EIGHTHS IT WAS PRETTY MUCH A GOOD NEWS DAY ALL AROUND SAID GAIL DUDACK STOCK STRATEGIST AT S. G. WARBURG IT WASN'T JUST IN THE U. S. AND IT WASN'T JUST THE ECONOMY SHARES OF XEROX JUMPED FIVE AND ONE HALF OR FIVE POINT NINE PERCENT TO NINETY EIGHT AND ONE EIGHTH THE COMPANY REPORTED FOURTH QUARTER OPERATING PROFIT OF TWO DOLLARS AND SEVEN CENTS A SHARE BEFORE CHARGES OF EIGHT HUNDRED THIRTEEN MILLION DOLLARS COMPARED WITH TWO DOLLARS AND SEVEN CENTS IN THE YEAR EARLIER PERIOD IN OTHER EARNINGS RELATED ACTIVITY TELLABS NASDAQ SLIPPED THREE OR SIX POINT ONE PERCENT TO FORTY SIX AFTER POSTING FOURTH QUARTER NET INCOME OF SIXTY SEVEN CENTS A SHARE THAT COMPARES FAVORABLY WITH YEAR EARLIER NET OF FORTY SIX CENTS BUT ONLY MATCHED WHAT ANALYSTS HAD EXPECTED ALLEGHENY LUDLUM SHED ONE AND ONE HALF OR SIX POINT THREE PERCENT TO TWENTY TWO AND ONE QUARTER AFTER REPORTING FOURTH QUARTER NET OF TWENTY FIVE CENTS A SHARE INCLUDING A GAIN OF NINE CENTS COMPARED WITH SEVENTEEN CENTS A YEAR EARLIER ANALYSTS HAD EXPECTED THE COMPANY TO EARN TWENTY FIVE CENTS A SHARE BEFORE THE GAIN GENERAL DATACOMM INDUSTRIES ROSE NINETEEN PERCENT OR TWO AND ONE QUARTER TO FOURTEEN ON POSITIVE COMMENTS FROM SOUNDVIEW FINANCIAL GROUP THE BROKERAGE FIRM INITIATED COVERAGE OF THE STOCK WITH A LONG TERM BUY RATING AND SAID THE DATA PROCESSING AND TELECOMMUNICATIONS EQUIPMENT FIRM IS WELL POSITIONED AS A LONG TERM PLAYER IN THE MARKET FOR A. T. M. OR ASYNCHRONOUS TRANSFER MODE SWITCHES ON THE AMERICAN STOCK EXCHANGE TRIARC COMPANIES FORMERLY D. W. G. CORPORATION TUMBLED THREE AND THREE EIGHTHS OR FOURTEEN PERCENT TO TWENTY AND SEVEN EIGHTHS IN HEAVY TRADING OPPENHEIMER AND COMPANY ANALYST MICHAEL BUNYANER SLASHED HIS NINETEEN NINETY FOUR EARNINGS ESTIMATE FOR THE NEW YORK CONGLOMERATE TO A RANGE OF ONE DOLLAR AND TWENTY CENTS TO ONE DOLLAR AND THIRTY CENTS A SHARE FROM HIS ORIGINAL ESTIMATE OF TWO DOLLARS AND TWENTY FIVE CENTS A SHARE BUT STILL RECOMMENDS PURCHASE OF THE STOCK THE COMPANY'S ROYAL CROWN COLA COMPANY UNIT NEGLECTED UNDER FORMER D. W. G. CHAIRMAN VICTOR POSNER HAS HIGHER THAN EXPECTED MARKETING AND OTHER EXPENSES MR. BUNYANER SAID IN A REPORT AND ITS TEXTILE UNIT GRANITEVILLE COMPANY IS UNDERGOING A CYCLICAL SLOWDOWN SOONER THAN HE ANTICIPATED SHARES OF MAXXIM MEDICAL AMEX SLIPPED ONE TO EIGHTEEN THE SUGARLAND TEXAS MEDICAL PRODUCT SUPPLY COMPANY FILED WITH THE S. E. C. FOR A SECONDARY OFFERING OF TWO POINT FOUR MILLION COMMON SHARES MAXXIM SAID TWO MILLION SHARES TOGETHER WITH ANY OVERALLOTMENT SHARES ARE NEW SHARES BEING SOLD BY THE COMPANY NOVELL IMPROVED THREE QUARTERS TO TWENTY TWO AND FIVE EIGHTHS THE COMPUTER SOFTWARE COMPANY SAID IT HAS BEGUN SHIPPING NOVELL D. O. S. SEVEN AN UPGRADE TO DOCTOR D. O. S. SIX POINT OH TRIARC COMPANIES' SHARES ARE TRADED ON THE NEW YORK STOCK EXCHANGE YESTERDAY'S ABREAST OF THE MARKET COLUMN INCORRECTLY SAID THE COMPANY'S STOCK IS TRADED ON THE AMERICAN STOCK EXCHANGE THE TREASURY SAID ITS NET MARKET BORROWING NEEDS IN THE FIRST QUARTER ARE EXPECTED TO BE FORTY FIVE BILLION DOLLARS WITH A TWENTY BILLION DOLLAR CASH BALANCE ON MARCH THIRTY FIRST THE TREASURY ALSO ESTIMATED ITS NET MARKET BORROWING NEEDS FOR THE SECOND QUARTER TO BE IN A RANGE OF FIFTEEN BILLION DOLLARS TO TWENTY BILLION DOLLARS WITH A THIRTY BILLION DOLLAR CASH BALANCE AT THE END OF JUNE A TREASURY SPOKESWOMAN WAS UNSURE WHETHER THE FUNDING ESTIMATES INCLUDED EXPECTED SPENDING FOR THE RESOLUTION TRUST CORPORATION THE FEDERAL AGENCY THAT DEALS WITH FAILED SAVINGS AND LOAN INSTITUTIONS IN THE NOVEMBER ANNOUNCEMENT OF ITS BORROWING NEEDS FOR THE FIRST QUARTER THE TREASURY HAD ESTIMATED NET MARKET BORROWING IN THE RANGE OF SIXTY BILLION DOLLARS TO SIXTY FIVE BILLION DOLLARS ASSUMING A THIRTY FIVE BILLION DOLLAR CASH BALANCE ON MARCH THIRTY FIRST ACTUAL MARKET BORROWING IN THE QUARTER THAT ENDED DECEMBER THIRTY FIRST NINETEEN NINETY THREE WAS EIGHTY FOUR POINT SIX BILLION DOLLARS WITH AN END OF QUARTER CASH BALANCE OF FORTY NINE POINT SEVEN BILLION DOLLARS PIERRE E. LEROY FORMERLY TREASURER AND VICE PRESIDENT BUSINESS DEVELOPMENT AND PLANNING AT THIS FARM EQUIPMENT MANUFACTURER WAS NAMED TO THE NEWLY CREATED POST OF CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT FINANCE AND ACCOUNTING MR. LEROY FORTY FIVE YEARS OLD WILL MAINTAIN RESPONSIBILITY FOR BUSINESS DEVELOPMENT AND PLANNING THE TREASURER'S POSITION HASN'T YET BEEN FILLED IN THE NEW POST THE COMPANY SAID MR. LEROY ASSUMES PART OF THE DUTIES OF SEVERAL EXECUTIVES INCLUDING SOME THAT HAD BEEN HELD BY EUGENE SCHOTANUS FIFTY SIX WHO CONTINUES IN HIS QUOTE PRIMARY ROLE QUOTE OF OVERSEEING DEERE'S CREDIT INSURANCE AND HEALTH CARE BUSINESSES INVESTORS HELD ON TO THEIR STOCK IN PARAMOUNT COMMUNICATIONS INCORPORATED IN HOPES OF SEEING HIGHER BIDS IN THE FOUR AND ONE HALF MONTH OLD TAKEOVER BATTLE BY TODAY'S FIVE P. M. BIDDING DEADLINE VIACOM INCORPORATED COULD HAVE WON CONTROL OF PARAMOUNT YESTERDAY IF PARAMOUNT STOCKHOLDERS HAD TENDERED FIFTY POINT ONE PERCENT OF THE PUBLISHING AND ENTERTAINMENT GIANT'S SHARES UNDER VIACOM'S NINE POINT SEVEN BILLION DOLLAR OFFER SINCE RIVAL BIDDER Q. V. C. NETWORK INCORPORATED DIDN'T MAKE A CHANGE IN ITS TEN POINT TWO BILLION DOLLAR OFFER BUT SOME TAKEOVER STOCK TRADERS SAID THEY DECIDED NOT TO TENDER THEIR SHARES TO VIACOM A CABLE TELEVISION PROGRAMMER SO THEY COULD GET A LOOK AT A POSSIBLE NEW OFFER SAID TO BE UNDER CONSIDERATION BY Q. V. C. DIRECTORS AT A BOARD MEETING YESTERDAY Q. V. C. DIDN'T ISSUE ANY STATEMENT AFTER YESTERDAY'S MEETING SURPRISING SOME TRADERS WHO HAD EXPECTED THE HOME SHOPPING COMPANY TO MAKE ITS INTENTIONS KNOWN IN ORDER TO ENSURE THAT INVESTORS DIDN'T ACCEPT THE VIACOM BID PARAMOUNT HAD ENDORSED THE LATEST VIACOM OFFER DESPITE ITS LOWER MARKET VALUE BECAUSE IT CONTAINS MORE CASH THAN Q. V. C.'S BID AS WELL AS A SECURITY DESIGNED TO PROVIDE AN ADDITIONAL PAYMENT IF VIACOM'S CLASS B. SHARES DON'T RISE IN PRICE FOLLOWING A VIACOM PARAMOUNT COMBINATION UNDER BIDDING PROCEDURES AGREED TO BY VIACOM AND Q. V. C. BOTH COMPANIES ARE TO MAKE THEIR FINAL OFFERS BY FIVE P. M. TODAY IF THERE IS A WIDE GAP BETWEEN THE OFFERS THAT COULD DETERMINE THE OUTCOME HOWEVER THERE ARE SEVERAL SCENARIOS UNDER WHICH THE WINNER WOULDN'T BE KNOWN IMMEDIATELY BOTH VIACOM AND Q. V. C. HAVE TO KEEP THEIR OFFERS OPEN FOR TEN BUSINESS DAYS UNTIL FEBRUARY FOURTEENTH TO SEE IF EITHER BIDDER CAN GAIN FIFTY POINT ONE PERCENT OF PARAMOUNT'S STOCK AND WIN THE CONTEST THEN THE WINNER HAS TO KEEP ITS BID OPEN FOR ANOTHER TEN DAYS TO ALLOW INVESTORS WHO DIDN'T TENDER THEIR SHARES TO DO SO IF THE BIDS ARE CLOSE BOTH Q. V. C. AND VIACOM ARE EXPECTED TO MOUNT INTENSIVE CAMPAIGNS TO SOLICIT SHARES BY FEBRUARY FOURTEENTH IN ADDITION TRADERS HAVE SPECULATED THAT BELLSOUTH CORPORATION WHICH IS ALREADY A Q. V. C. INVESTOR COULD ANNOUNCE A PLAN TO BUY ADDITIONAL Q. V. C. SHARES WHICH BY ITSELF COULD BOOST THE PERCEIVED VALUE OF Q. V. C.'S CASH AND STOCK BID AFTER THE DEADLINE ALSO ONE OR BOTH SIDES COULD ELECT TO MAKE A LARGE INCREASE IN ITS OFFER AFTER THE DEADLINE ALTHOUGH SUCH A MOVE WOULD CERTAINLY RISK A LAWSUIT BY THE HIGH BIDDER THE PARAMOUNT BOARD MIGHT HAVE AN OBLIGATION TO ITS SHAREHOLDERS TO ALLOW A MUCH HIGHER OFFER EVEN IF IT'S MADE AFTER THE BIDDING DEADLINE SET BY PARAMOUNT THE PROCESS WOULD ALSO CONTINUE IF NEITHER SIDE GAINED A MAJORITY OF THE SHARES BY FEBRUARY FOURTEENTH PARAMOUNT SHARES DROPPED TWENTY FIVE CENTS TO SEVENTY NINE POINT SIX TWO FIVE DOLLARS YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE Q. V. C. SHARES ROSE TWENTY FIVE CENTS TO FORTY FOUR DOLLARS ON THE NASDAQ STOCK MARKET VIACOM B. SHARES DROPPED SEVENTY FIVE CENTS TO THIRTY FIVE DOLLARS AND TWENTY FIVE CENTS ON THE AMERICAN STOCK EXCHANGE RAW STEEL PRODUCTION BY THE NATION'S MILLS INCREASED EIGHT PERCENT LAST WEEK TO ONE MILLION EIGHT HUNDRED THOUSAND TONS FROM ONE MILLION SIX HUNDRED SIXTY SEVEN THOUSAND TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE TWO POINT ONE PERCENT FROM THE ONE MILLION SEVEN HUNDRED SIXTY THREE THOUSAND TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED EIGHTY SEVEN POINT FOUR PERCENT OF ITS CAPABILITY LAST WEEK COMPARED WITH EIGHTY POINT NINE PERCENT THE PREVIOUS WEEK AND EIGHTY THREE POINT NINE PERCENT A YEAR EARLIER THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK TWO LEADING REPUBLICAN SENATORS ON HEALTH ISSUES SAID HEALTH CARE REFORM LEGISLATION SHOULD PROVIDE FOR UNIVERSAL INSURANCE COVERAGE ONE WEEK AFTER PRESIDENT CLINTON THREATENED TO VETO ANY HEALTH CARE BILL THAT QUOTE DOES NOT GUARANTEE EVERY AMERICAN PRIVATE HEALTH INSURANCE THAT CAN NEVER BE TAKEN AWAY QUOTE SENATORS JOHN CHAFEE OF RHODE ISLAND AND DON NICKLES OF OKLAHOMA BOTH SAID THEY THINK IT IS IMPORTANT TO GUARANTEE EVERY AMERICAN AT LEAST SOME HEALTH COVERAGE OUR BILL PROVIDES FOR UNIVERSAL COVERAGE I THINK THAT'S AN ABSOLUTE ESSENTIAL SENATOR CHAFEE SAID DURING AN AMERICAN HOSPITAL ASSOCIATION CONVENTION SENATOR NICKLES ADDED THAT HIS BILL SAYS EVERYONE IN AMERICA SHOULD HAVE AT LEAST CATASTROPHIC COVERAGE AND THAT IS A GIANT STEP IN THE RIGHT DIRECTION THE TWO G. O. P. SENATORS AUTHORS OF TWO OF THE PRINCIPAL G. O. P. HEALTH BILLS IN THE SENATE HAVE ENDORSED UNIVERSAL COVERAGE IN THE PAST BUT THEIR COMMENTS TOOK ON HEIGHTENED SIGNIFICANCE IN THE WAKE OF THE PRESIDENT'S VETO THREAT THEIR COMMENTS SHOW THAT THE ADMINISTRATION STILL COULD HAVE SOME REPUBLICAN BACKING FOR A UNIVERSAL COVERAGE BILL A NUMBER OF REPUBLICANS HAVE SUGGESTED IN RECENT DAYS THAT THE U. S. DOESN'T FACE A HEALTH CARE CRISIS AND NEEDS ONLY SMALL LEGISLATIVE STEPS TO FIX THE MEDICAL SYSTEM DESPITE THE PRESIDENT'S INSISTENCE ON UNIVERSAL COVERAGE ADMINISTRATION OFFICIALS INDICATED YESTERDAY THAT THE ADMINISTRATION MAY BE WILLING TO COMPROMISE ON WHEN TO ACHIEVE THAT GOAL A TOP ADMINISTRATION OFFICIAL SAID THE WHITE HOUSE IS WILLING TO CONSIDER EXTENDING THE TIMETABLE FOR ACHIEVING UNIVERSAL COVERAGE BEYOND THE NINETEEN NINETY EIGHT DEADLINE IT HAS PROPOSED THAT COULD BRING THE WHITE HOUSE TROUBLE FROM THE LEFT REPRESENTATIVE JAMES MCDERMOTT D. WASHINGTON AUTHOR OF A BILL THAT WOULD ESTABLISH A GOVERNMENT RUN TAXPAYER FINANCED NATIONAL HEALTH INSURANCE SYSTEM TOLD REPORTERS AT A SEPARATE LUNCHEON THAT STRAYING MUCH BEYOND NINETEEN NINETY EIGHT WOULD BE UNACCEPTABLE SEPARATELY THE NATION'S GOVERNORS CALLED ON MR. CLINTON AND CONGRESS TO PASS HEALTH CARE REFORM THIS YEAR AND THEY ASKED THAT IT INCLUDE A SERIES OF CHANGES THAT HAVE BIPARTISAN SUPPORT AMONG THE STATE CHIEF EXECUTIVES AT THE WINTER MEETING OF THE NATIONAL GOVERNORS' ASSOCIATION HERE THE GOVERNORS CALLED FOR LEGISLATION THAT INCLUDES INSURANCE REFORM STATE ORGANIZED INSURANCE PURCHASING COOPERATIVES A CORE BENEFITS PACKAGE FULL TAX DEDUCTIBILITY FOR HEALTH CARE PREMIUMS SUBSIDIES FOR THE POOR AND MALPRACTICE AND LIABILITY REFORM THE GOVERNORS ALSO REPORTED THAT IN A CLOSED DOOR MEETING AT THE WHITE HOUSE MR. CLINTON REITERATED HIS WILLINGNESS TO COMPROMISE ON BOTH HIS PLAN'S PROVISION TO CREATE MANDATORY HEALTH INSURANCE ALLIANCES AND ITS CALL FOR NATIONAL HEALTH CARE BUDGETS BUT REPUBLICAN GOVERNOR CARROLL CAMPBELL OF SOUTH CAROLINA REPORTED THAT THE WHITE HOUSE DIDN'T APPEAR SIMILARLY INCLINED TO BE FLEXIBLE ON ITS PLAN TO REQUIRE EMPLOYERS TO PAY THE BULK OF EMPLOYEES' HEALTH BENEFITS GOVERNOR CAMPBELL SAID THE SO CALLED EMPLOYER MANDATE WILL BE A MAJOR STUMBLING BLOCK WITH THE G. O. P. GERALD F. SEIB CONTRIBUTED TO THIS ARTICLE THE DOLLAR STUMBLED YESTERDAY AS THE YEN DREW STRENGTH FROM THE THIRD STEEPEST RISE IN TOKYO STOCK MARKET HISTORY FUELED BY OPTIMISM OVER PASSAGE OF JAPAN'S LONG STALLED POLITICAL REFORM PACKAGE DURING THE WEEKEND IN ADDITION ANY HOPES FOR A DOLLAR RECOVERY AFTER ALAN GREENSPAN FEDERAL RESERVE CHAIRMAN SAID INTEREST RATES WILL RISE EVENTUALLY WERE IMMEDIATELY PUT TO REST WHEN PRESIDENT CLINTON TERMED LOW INTEREST RATES QUOTE CRITICAL QUOTE TO THE U. S. ECONOMIC RECOVERY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN THREE FOUR FIVE MARKS DOWN FROM ONE POINT SEVEN FOUR TWO FIVE MARKS LATE FRIDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED EIGHT POINT SEVEN OH YEN DOWN FROM ONE HUNDRED TEN YEN STERLING WAS TRADING AT ONE POINT FIVE OH SIX OH DOLLARS UP FROM ONE POINT FOUR NINE FOUR FIVE DOLLARS ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED EIGHT POINT TWO FIVE YEN AND AT ONE POINT SEVEN THREE FOUR OH MARKS THE NIKKEI INDEX OF TWO HUNDRED TWENTY FIVE SELECTED ISSUES ROCKETED SEVEN POINT EIGHT PERCENT TO A THREE MONTH HIGH OF TWENTY THOUSAND TWO HUNDRED TWENTY NINE POINT ONE TWO AFTER MORIHIRO HOSOKAWA JAPAN'S PRIME MINISTER PUSHED THROUGH THE COMPROMISE REFORM PACKAGE ON WHICH HE HAD STAKED HIS POLITICAL CAREER PASSAGE OF MR. HOSOKAWA'S ANTICORRUPTION MEASURES OPENED UP THE WAY FOR HIS COALITION GOVERNMENT TO FOCUS ON ECONOMIC STIMULUS MEASURES TO REVIVE JAPAN'S FLAGGING ECONOMY INDEED BULLISHNESS OVER JAPAN'S ECONOMY WAS FURTHER PRODDED BY VARIOUS STATEMENTS BY JAPANESE OFFICIALS THAT AN ECONOMIC STIMULUS PACKAGE WOULD BE ANNOUNCED THURSDAY SUCH A PACKAGE COULD STRENGTHEN THE YEN BECAUSE MARKET INTEREST RATES IN JAPAN PROBABLY WILL CLIMB IF THE GOVERNMENT DECIDES TO BORROW SAID ANGELO EVANGELISTA VICE PRESIDENT CORPORATE FOREIGN EXCHANGE AT THE BANK OF BOSTON HOWEVER IT WASN'T IMMEDIATELY CLEAR WHETHER AN ECONOMIC STIMULUS PACKAGE WOULD IN FACT ADD MUSCLE TO THE YEN A STIMULUS PACKAGE IF COMBINED WITH A TEARING DOWN OF TRADE BARRIERS AGAINST U. S. GOODS AND SERVICES COULD ALSO DAMP ANY U. S. PRESSURE TO KEEP THE YEN STRONG THE YEN HAS BEEN EXTREMELY SENSITIVE TO COMMENTS BY U. S. OFFICIALS CRITICAL OF JAPAN'S HUGE TRADE SURPLUSES AND DEPLORING A WEAK YEN AS A TOOL FOR STIMULATING THE DOMESTIC ECONOMY INDEED LAST FEBRUARY'S CALLS BY TREASURY SECRETARY LLOYD BENTSEN FOR A STRONG YEN AS A WAY OF MITIGATING JAPAN'S TRADE IMBALANCE DUG A PATH FOR THE YEN'S HISTORICAL HIGHS AGAINST THE DOLLAR BY AUGUST MEANWHILE MR. GREENSPAN MADE CLEAR IN TESTIMONY BEFORE CONGRESS'S JOINT ECONOMIC COMMITTEE THAT U. S. INTEREST RATES EVENTUALLY WOULD RISE THE FOUNDATIONS OF THE ECONOMIC EXPANSION ARE LOOKING INCREASINGLY WELL ENTRENCHED HE SAID SHORT TERM INTEREST RATES ARE CURRENTLY ABNORMALLY LOW IN REAL TERMS AT SOME POINT ABSENT AN UNEXPECTED AND PROLONGED WEAKENING OF ECONOMIC ACTIVITY WE WILL NEED TO MOVE THEM TO A MORE NEUTRAL STANCE BUT TRADERS NOTED THAT MR. GREENSPAN FAILED TO SPECIFY WHEN RATES WOULD GO HIGHER OR WHAT IT WOULD TAKE TO TRIGGER THAT RATE INCREASE WHAT'S MORE THE FED CHIEF'S COMMENTARY WAS QUICKLY COUNTERED BY MR. CLINTON WHO IMMEDIATELY CALLED FOR A CONTINUATION OF LOW INTEREST RATES SAYING THERE IS NO EVIDENCE THAT INFLATION IS RETURNING TO THE ECONOMY WE WANT THE ECONOMY TO GROW IN A VERY STABLE SOLID WAY MR. CLINTON SAID ADDING OBVIOUSLY LOW INTEREST RATES ARE CRITICAL TO THAT COOPER COMPANIES MIRED IN COSTLY LEGAL EXPENSES REPORTED A NARROWER FOURTH QUARTER LOSS BUT SAID AUDITORS QUESTIONED THE COMPANY'S ABILITY TO CONTINUE AS A GOING CONCERN THE MAKER OF MEDICAL PRODUCTS SAID ITS POTENTIAL LEGAL LIABILITIES AS WELL AS LOSSES AND NEGATIVE CASH FLOWS FOR THE LAST THREE FISCAL YEARS RAISED CONCERNS ABOUT ITS FINANCIAL STRENGTH WITH OUTSIDE AUDITORS COOPER AND ITS FORMER CO CHAIRMAN GARY SINGER FACE POSSIBLY STIFF FINES AND SENTENCING ON MARCH TWENTY FIFTH FOR THEIR CONVICTIONS IN AN ILLEGAL JUNK BOND TRADING SCHEME THE COMPANY ALSO FACES RELATED CIVIL CHARGES BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION AND LAST FALL SETTLED LAWSUITS RELATED TO ITS FORMER BREAST IMPLANT BUSINESS WHICH IT SOLD IN NINETEEN EIGHTY EIGHT TO BRISTOL MYERS SQUIBB COMPANY COOPER SAID IT MAY CONTINUE TO FACE CASH SHORTAGES COOPER REPORTED A FOURTH QUARTER LOSS OF ELEVEN POINT FIVE MILLION DOLLARS OR THIRTY EIGHT CENTS A SHARE DUE PARTLY TO INVESTMENT LOSSES AND LEGAL EXPENSES THE LATEST QUARTER INCLUDED A TWO POINT ONE MILLION DOLLAR PRETAX CHARGE FOR DEBT RESTRUCTURING AND A ONE POINT FIVE DOLLAR MILLION PRETAX CHARGE FOR THE SETTLEMENT OF VARIOUS LAWSUITS IN THE YEAR EARLIER QUARTER COOPER REPORTED A NET LOSS OF SEVENTEEN MILLION DOLLARS OR FIFTY SIX CENTS A SHARE INCLUDING A SEVEN MILLION DOLLAR CHARGE TO RESERVE FUNDS FOR BREAST IMPLANT LITIGATION AND A SMALL GAIN ON THE PURCHASE OF SUBORDINATED DEBT REVENUE FOR THE QUARTER EDGED UP ONE PERCENT TO TWENTY TWO POINT ONE MILLION DOLLARS FROM TWENTY ONE POINT NINE MILLION DOLLARS FOR THE YEAR THE COMPANY SAID ITS LOSS WIDENED TO FORTY SIX POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND FIFTY FIVE CENTS A SHARE FROM TWENTY FOUR POINT EIGHT MILLION DOLLARS OR NINETY SIX CENTS A SHARE IN NINETEEN NINETY TWO THE NINETEEN NINETY THREE RESULTS INCLUDE A CHARGE OF THIRTEEN POINT SEVEN MILLION DOLLARS LARGELY FOR RESERVES FOR BREAST IMPLANT LEGAL EXPENSES THE NINETEEN NINETY TWO RESULTS INCLUDED A CHARGE OF NINE POINT THREE MILLION DOLLARS LARGELY FOR LEGAL EXPENSES REVENUE FOR THE YEAR CLIMBED FORTY SIX PERCENT TO NINETY TWO POINT SEVEN MILLION DOLLARS THE STOCK CLOSED AT FIFTY SIX POINT TWO FIVE CENTS A SHARE UP SIX POINT TWO FIVE CENTS OR TWELVE POINT FIVE PERCENT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CLARENCE P. CAZALOT JUNIOR PRESIDENT OF TEXACO'S LATIN AMERICA SLASH WEST AFRICA DIVISION WILL BECOME PRESIDENT OF TEXACO EXPLORATION AND PRODUCTION INCORPORATED MR. CAZALOT FORTY THREE YEARS OLD WILL SUCCEED EARL L. JOHNSON SIXTY THREE WHO IS RETIRING AFTER FORTY ONE YEARS WITH THE COMPANY PATRICK J. LYNCH FIFTY SIX VICE PRESIDENT AND COMPTROLLER OF TEXACO WILL BECOME PRESIDENT OF THE COMPANY'S LATIN AMERICA SLASH WEST AFRICA DIVISION ROBERT OELKERS FORTY NINE SENIOR VICE PRESIDENT OF THE COMPANY'S REFINING AND MARKETING UNIT HAS BEEN ELECTED COMPTROLLER SUCCEEDING MR. LYNCH LESTER A. AMIDEI JUNIOR FORTY NINE GENERAL MANAGER OF CORPORATE PLANNING AND ECONOMICS WILL ASSUME MR. OELKERS'S POST ALL THE CHANGES TAKE EFFECT MARCH FIRST B. M. W. AGREED TO PAY ONE POINT TWO BILLION DOLLARS FOR EIGHTY PERCENT CONTROL OF BRITISH AUTO MAKER ROVER CARS IN A COUP THAT WOULD NEARLY DOUBLE THE GERMAN LUXURY CAR MAKER'S SALES AND VAULT IT INTO THE LUCRATIVE U. S. MARKET FOR SPORT UTILITY VEHICLES WITH THE VENERABLE LAND ROVER NAME BRITISH AEROSPACE P. L. C. ROVER'S PARENT ACCEPTED A LAST MINUTE OFFER FROM BAYERISCHE MOTOREN WERKE A. G. ON SATURDAY AFTER HONDA MOTOR COMPANY OF JAPAN PASSED UP A CHANCE TO BUY THE EIGHTY PERCENT OF ROVER CARS IT DOESN'T ALREADY OWN HONDA HOLDS ITS TWENTY PERCENT STAKE THROUGH A FOUR YEAR OLD CROSS SHAREHOLDING ALLIANCE THAT INCLUDES EXTENSIVE MANUFACTURING AND PRODUCT SHARING BETWEEN THE COMPANIES THE ROVER ALLIANCE ALSO GAVE HONDA A VALUABLE FOOTHOLD IN THE HEAVILY PROTECTED EUROPEAN MARKET HONDA OFFICIALS WERE CLEARLY MIFFED BY THE B. M. W. AGREEMENT WHICH IS SUBJECT TO APPROVAL BY BRITISH AEROSPACE SHAREHOLDERS IN A STATEMENT HONDA SAID QUOTE THE DECISION BY BRITISH AEROSPACE TO SELL ITS SHARES IN ROVER TO B. M. W. NEGATES THE LONG TERM EFFORTS BETWEEN HONDA AND ROVER TO ESTABLISH A FIRM FUTURE FOR ROVER AS A BRITISH COMPANY WITH ITS OWN BRAND IDENTITY QUOTE HONDA ALSO LEFT OPEN THE POSSIBILITY THAT IT WILL PULL BACK FROM PRODUCT SHARING DEALS WITH ROVER SHOULD B. M. W. GAIN CONTROL B. M. W. OFFICIALS EXPRESSED THEIR HOPE THAT HONDA'S AGREEMENTS WITH ROVER WILL CONTINUE IN EVERY RESPECT BUT B. M. W. EXECUTIVES COULDN'T RESIST CROWING EITHER THIS IS DIFFERENT FROM THE NORMAL TAKEOVER A TRIUMPHANT CHAIRMAN BERND PITSCHETSRIEDER SAID DURING A LONDON NEWS CONFERENCE IN THIS CASE HE SAID TWO PLUS TWO IS FIVE FOR B. M. W. THE DEAL ALSO OFFERS ANOTHER OPPORTUNITY TO UPSTAGE THE DAIMLER BENZ A. G. UNIT WHICH B. M. W. SURPASSED LAST YEAR IN WORLD WIDE SALES FOR THE FIRST TIME WITH ROVER B. M. W. COULD IMMEDIATELY HAVE THREE SPORT UTILITY VEHICLES TO SELL IN THE U. S. RANGING IN PRICE FROM FIFTY THOUSAND DOLLARS RANGE ROVERS TO A NEW MODEL THE DISCOVERY EXPECTED TO MAKE ITS DEBUT IN APRIL AT PRICES BELOW THIRTY THOUSAND DOLLARS THE DISCOVERY IN PARTICULAR COULD GRAB SALES FROM THE SEGMENT'S VOLUME LEADERS FORD MOTOR COMPANY'S EXPLORER AND CHRYSLER CORPORATION'S GRAND CHEROKEE MERCEDES BENZ ISN'T EXPECTED TO SELL ITS FIRST SPORTS UTILITY VEHICLE IN THE U. S. UNTIL NINETEEN NINETY SEVEN WHEN ITS THREE HUNDRED MILLION DOLLAR PLANT IN TUSCALOOSA ALABAMA BEGINS PRODUCING THEM WE ARE ON THE FAST TRACK INTO THIS SEGMENT SAID HELMUT PANKE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF B. M. W.'S U. S. UNIT LAND ROVER GIVES B. M. W. INSTANT BRAND RECOGNITION AND A U. S. DISTRIBUTION NETWORK THAT HAD ITS BEST YEAR EVER LAST YEAR SELLING FOUR THOUSAND NINE HUNDRED SEVEN VEHICLES AND NOW PLANS TO EXPAND ITS PRODUCT OFFERINGS AND SALES OUTLETS ROVER'S EIGHTY FOUR U. S. DEALERS ARE REVAMPING TO BECOME LAND ROVER CENTRES THAT WILL HIGHLIGHT THE COMPANY'S EXPERTISE IN FOUR WHEEL DRIVE VEHICLES MR. PANKE SAID B. M. W.'S THREE HUNDRED FIFTY U. S. DEALERSHIPS COULD OFFER LAND ROVER VEHICLES BUT THE COMPANY WILL FIRST CONSULT ITS DEALERS BEFORE ADOPTING THAT STRATEGY IN EUROPE B. M. W. STANDS TO GAIN AS WELL THAT'S BECAUSE ROVER IS STRONG IN MARKET NICHES AND COUNTRIES WHERE B. M. W. IS WEAK AND VICE VERSA A COMBINED B. M. W. ROVER COULD OFFER A FULL RANGE OF VEHICLES FROM TINY SUBCOMPACTS LIKE ROVER'S MINI TO B. M. W.'S LARGE LUXURY MODELS TO THE LAND ROVER AND RANGE ROVER TRUCKS ALL WITH NO ADDITIONAL RESEARCH AND DEVELOPMENT EXPENDITURES THAT GIVES B. M. W. A HUGE TIME JUMP ON MERCEDES WHICH IS TRYING TO ENTER MANY OF THESE SAME NICHES THROUGH DEVELOPING PRODUCTS ON ITS OWN MOREOVER ROVER AND B. M. W. COULD CUT PURCHASING AND PRODUCTION COSTS BY SHARING THOSE ACTIVITIES AND SPREADING COSTS OVER LARGER SALES VOLUMES ROVER SOLD ABOUT FOUR HUNDRED FORTY TWO THOUSAND VEHICLES WORLD WIDE LAST YEAR B. M. W. WORLD WIDE SALES TOTALED FIVE HUNDRED THIRTY FOUR THOUSAND IN NINETEEN NINETY THREE INCLUDING SEVENTY EIGHT THOUSAND TEN CARS IN THE U. S. TOGETHER B. M. W. PREDICTED THE TWO COMPANIES COULD SELL MORE THAN ONE MILLION VEHICLES A YEAR SHARES IN BOTH B. M. W. AND BRITISH AEROSPACE ROSE ON THE NEWS IN FRANKFURT B. M. W. JUMPED FIFTY SIX POINT FIVE OH MARKS OR EIGHT POINT THREE PERCENT TO SEVEN HUNDRED THIRTY NINE POINT FIVE OH THIRTY TWO DOLLARS AND FORTY THREE CENTS TO FOUR HUNDRED TWENTY FOUR DOLLARS AND FIFTY ONE CENTS AT THE END OF FLOOR TRADING IN LONDON BRITISH AEROSPACE JUMPED FIFTY SEVEN PENCE OR THIRTEEN PERCENT TO FOUR HUNDRED NINETY NINE EIGHTY FIVE CENTS TO SEVEN DOLLARS AND FORTY SIX CENTS NOT EVERYONE IN THE FINANCIAL COMMUNITY IS AS SANGUINE SHORTLY AFTER THE DEAL WAS ANNOUNCED STANDARD AND POOR'S PUT THE A ONE RATINGS FOR COMMERCIAL PAPER SOLD BY B. M. W. AND B. M. W. U. S. CAPITAL CORPORATION ON CREDITWATCH WITH NEGATIVE IMPLICATIONS AT THE SAME TIME S. AND P. PUT BRITISH AEROSPACE'S SINGLE A MINUS SENIOR DEBT RATING AND ITS A TWO COMMERCIAL PAPER RATING ON CREDITWATCH WITH POSITIVE IMPLICATIONS BRITISH AEROSPACE PAID TWO HUNDRED FIFTY MILLION DOLLARS FOR ITS STAKE IN ROVER CARS IN NINETEEN EIGHTY EIGHT THE COMPANY SAID PROCEEDS FROM THE CASH SALE TO B. M. W. WILL BE USED TO REDUCE DEBT AND QUOTE ENHANCE QUOTE EARNINGS THE ROVER SALE MARKS THE PASSING OF BRITAIN'S LAST HIGH VOLUME CAR MAKER INTO FOREIGN OWNERSHIP HONDA'S HESITATION TO TAKE MAJORITY CONTROL OF ROVER WHEN BRITISH AEROSPACE OFFERED IT MAY HAVE STEMMED FROM HONDA'S FEAR OF GETTING CAUGHT IN A NATIONALISTIC BACKLASH BRITISH AEROSPACE OFFICIALS SAID THE COMPANY MADE CLEAR TO HONDA THAT IT WANTED TO LEAVE THE CAR MAKING BUSINESS ENTIRELY SO IT COULD FOCUS ON CORE DEFENSE AND AEROSPACE BUSINESSES ON AUGUST TWELFTH BRITISH AEROSPACE GOT A FREE HAND TO SHOP ITS ROVER STAKE AROUND WHEN A PLEDGE IT HAD MADE TO THE BRITISH GOVERNMENT TO HOLD ROVER SHARES FOR AT LEAST FIVE YEARS EXPIRED ON THAT DATE LATE LAST WEEK WITH HONDA STILL BALKING B. M. W. SWEPT IN WITH ITS OFFER TO BUY BRITISH AEROSPACE'S ONE HUNDRED PERCENT OWNERSHIP OF ROVER GROUP HOLDINGS LIMITED ROVER GROUP HOLDINGS IN TURN OWNS EIGHTY PERCENT OF ROVER CARS WHICH IN ADDITION TO LAND ROVER OWNS SUCH WELL LOVED BRITISH NAMES AS TRIUMPH M. G. MORRIS MINOR AND AUSTIN MINI NOW THAT RICHARD THOMAS HAS FINISHED MAKING OVER FIRST CHICAGO HE MAY HAVE HIS HANDS FULL FIGHTING OFF SUITORS THE BIG CHICAGO BANK THE ELEVENTH LARGEST NATIONWIDE IS BELIEVED TO HAVE ALREADY REBUFFED AN OVERTURE FROM BANKAMERICA WHICH ON FRIDAY DISCLOSED ITS ONE POINT NINE BILLION DOLLAR PROPOSAL TO TAKE OVER CONTINENTAL BANK FIRST CHICAGO'S CROSSTOWN RIVAL ANALYSTS AND INVESTMENT BANKERS SAY FIRST CHICAGO REMAINS ONE OF THE MOST ATTRACTIVE CANDIDATES IN THE MARKET THESE DAYS FOR A BANK MERGER OR ACQUISITION NOT ONLY BECAUSE OF ITS VASTLY IMPROVED FUNDAMENTALS BUT ALSO BECAUSE OF ITS STRATEGIC CHICAGO LOCATION QUOTE EVERYBODY AND THEIR BROTHER ARE TRYING TO GET INTO CHICAGO QUOTE SAYS DAVID BERRY DIRECTOR OF RESEARCH AT KEEFE BRUYETTE AND WOODS FIRST CHICAGO WOULD BE A VERY NICE FIT WITH A LOT OF FOLKS BUT IT HAS TO BE SOMEONE WHO HAS AN INTEREST IN BOTH RETAIL AND WHOLESALE BANKING NEWS OF THE CONTINENTAL PURCHASE PROPELLED FIRST CHICAGO'S COMMON STOCK UP ONE AND THREE QUARTERS TO FORTY SIX AND THREE QUARTERS ON HEAVY VOLUME FRIDAY AS INVESTORS SPECULATED THAT IT COULD BE NEXT YESTERDAY FIRST CHICAGO'S SHARES CLOSED AT FORTY SEVEN UP ONE QUARTER MR. THOMAS WHO TOOK OVER THE HELM OF FIRST CHICAGO TWO YEARS AGO DOWNPLAYS THE IDEA THAT FIRST CHICAGO IS ON THE BLOCK I WOULDN'T READ ANYTHING INTO OUR STOCK HE SAID IN AN INTERVIEW FRIDAY WE HAVE OUR OWN GAME PLAN THERE'S NO REASON TO THINK WHY THIS SHOULD AFFECT OUR STRATEGY OF REMAINING INDEPENDENT AND HEADQUARTERED IN CHICAGO TAKEOVER FEVER ASIDE FIRST CHICAGO IS ONE OF THE CHEAPEST BANK STOCKS ON THE MARKET ANALYSTS SAY AT CURRENT PRICES THE STOCK TRADES AT EIGHT POINT EIGHT TIMES TRAILING EARNINGS HALF THE AVERAGE MULTIPLE FOR THE STOCK MARKET AS A WHOLE IT LOOKS LIKE AN EVEN BETTER BARGAIN BASED ON FUTURE EARNINGS TRADING AT FIVE POINT NINE TIMES WALL STREET'S CONSENSUS ESTIMATE FOR NINETEEN NINETY FOUR IF THAT WEREN'T ENOUGH IT ALSO SPORTS A TEMPTING THREE POINT FOUR PERCENT YIELD IT'S A VERY VERY CHEAP BANK STOCK WITH ABOVE AVERAGE EARNINGS POTENTIAL SAID VALUE INVESTOR DAVID DREMAN WHOSE FIRM OWNS MORE THAN ONE MILLION SHARES OF FIRST CHICAGO QUOTE IT'S CLEANED UP A LOT OF ITS PROBLEMS QUOTE MR. THOMAS GETS MOST OF THE CREDIT FOR THE MAKEOVER HAVING SHED BOATLOADS OF PROBLEM REAL ESTATE BUILT UP CREDIT CARD OPERATIONS AND FOCUSED THE BANK MORE TIGHTLY ON WHOLESALE BUSINESSES SUCH AS CORPORATE LENDING AND CUSTODIAL SERVICES FIRST CHICAGO REPORTED NINETEEN NINETY THREE EARNINGS OF EIGHT DOLLARS AND SEVENTY EIGHT CENTS A SHARE UP SHARPLY FROM SIXTY FOUR CENTS A SHARE IN NINETEEN NINETY TWO WHEN IT INCURRED A BIG LOSS TO WRITE DOWN ITS REAL ESTATE PORTFOLIO FROM A STRATEGIC POINT OF VIEW FIRST CHICAGO HAS A LOT TO OFFER BOTH INVESTORS AND POTENTIAL PARTNERS IT'S THE LARGEST BANK IN THE MIDWEST SITTING IN THE MIDDLE OF THE INDUSTRIAL HEARTLAND OF THE U. S. AN AREA CURRENTLY ENJOYING SOMETHING OF AN ECONOMIC RENAISSANCE COMPARED WITH THE TWO COASTS THE BANK COMPANY SPANS THREE ATTRACTIVE LINES OF BUSINESS WHOLESALE BANKING CREDIT CARDS AND RETAIL BRANCH BANKING AND HAS BEEN ACQUIRING SMALLER BANKS TO EXPAND ITS RETAIL FRANCHISE BOTH IN CHICAGO AND IN THE CITY'S AFFLUENT SUBURBS ANALYSTS SAY FIRST CHICAGO WOULD FIT WELL AS A MERGER OF EQUALS WITH ANOTHER MIDWESTERN OR EASTERN BANK THE CONTINENTAL TAKEOVER ONLY DRAWS EXTRA ATTENTION TO THE OPPORTUNITIES IN MIDWEST BANKING AND IN THE CHICAGO MARKET IN PARTICULAR INDEED THERE ISN'T ANY DEARTH OF POTENTIAL SUITORS FOR FIRST CHICAGO ANALYSTS AND TAKEOVER ADVISERS SAY SAYS ONE INVESTMENT BANKER OF FIRST CHICAGO WE COULD HAVE A NICE EIGHTIES STYLE SEALED BID AUCTION AND HAVE A REAL GOOD TIME KEEFE BRUYETTE'S MR. BERRY POINTS TO NATIONSBANK OF CHARLOTTE N. C. AS ONE POSSIBLE CANDIDATE A LINKUP WITH FIRST CHICAGO WOULD SUIT THAT BANK'S GOALS OF EXPANDING ITS ACTIVITIES IN CREDIT CARDS AND WHOLESALE BANKING HE SAYS MEANWHILE NATIONSBANK CHAIRMAN HUGH MCCOLL RECENTLY INDICATED HE'D BE INTERESTED IN DIVERSIFYING INTO THE MIDWEST STATE LAWS THAT CURRENTLY RESTRICT NATIONSBANK FROM BUYING OUTSIDE ITS REGION COULD BE LIFTED THIS YEAR FRIDAY A NATIONSBANK SPOKESWOMAN DECLINED COMMENT ON ITS PLANS OTHER STRONG REGIONALS SUCH AS BANC ONE OF COLUMBUS OHIO HAVE ALREADY SET UP SHOP IN CHICAGO SUBURBS AND ARE LOOKING AT THE WINDY CITY ITSELF BANK OF MONTREAL WHICH ALREADY OWNS CHICAGO BASED HARRIS BANK SAYS IT TOO WANTS TO SIGNIFICANTLY EXPAND ITS BUSINESS NORWEST A FAST GROWING MINNEAPOLIS BANKING COMPANY WITH OFFICES IN ALL FIFTY STATES WOULD LIKE TO BE BIGGER IN ILLINOIS BUT WHETHER THAT OCCURS OR NOT WHO KNOWS SAYS CHIEF EXECUTIVE OFFICER RICHARD KOVASEVICH MY BELIEF IS IF YOU ENTER A MARKET IT HAS TO BE ON A PRETTY BIG SCALE FOR NOW OUR FOCUS IN ILLINOIS IS REALLY OUTSIDE CHICAGO HE ADDS AMONG EAST COAST BANKS MR. BERRY SAYS NEW YORK BASED BANK OF NEW YORK WOULD BE A GOOD FIT WITH FIRST CHICAGO P. N. C. BANK OF PITTSBURGH MIGHT BE ALSO INTERESTED INVESTMENT BANKERS SAY REPRESENTATIVES OF BANK OF MONTREAL BANK OF NEW YORK BANC ONE AND P. N. C. DECLINED COMMENT INVESTORS WHO THINK FIRST CHICAGO IS RIPE FOR A TAKEOVER SHOULDN'T MORTGAGE THE HOUSE QUITE YET BANKS HAVE WIDE LATITUDE IN PICKING MERGER CANDIDATES OR DECIDING WHETHER TO MERGE AT ALL AND FIRST CHICAGO CLEARLY WISHES TO REMAIN INDEPENDENT ITS DIRECTORS MANY OF WHOM ARE CHICAGO'S TOP CORPORATE V. I. P.S BELIEVE THE CITY SHOULD HAVE AT LEAST ONE REMAINING INDEPENDENT BANK AND ARE OPPOSED TO BEING GOBBLED UP BY OUT OF TOWNERS FIRST CHICAGO EXECUTIVES SAY SUCH PROVINCIALISM DOESN'T NECESSARILY THRILL THE BANK'S SHAREHOLDERS QUOTE AS A SHAREHOLDER OF COURSE WE WANT TO MAXIMIZE SHAREHOLDER VALUE QUOTE SAYS MR. DREMAN IF SOMEBODY CAME ALONG WITH AN EXCELLENT OFFER WE'D OBVIOUSLY WANT THE BOARD TO LOOK AT IT WHILE RETIREMENTS CAN OFTEN BE THE SPARK FOR BANK MERGERS THE SIXTY THREE YEAR OLD MR. THOMAS ALREADY CHOSE LEO MULLIN A WELL RESPECTED FORMER MCKINSEY CONSULTANT AS HIS SUCCESSOR IN NOVEMBER MR. THOMAS DOESN'T PLAN TO STEP DOWN FOR ABOUT ANOTHER TWO YEARS HOWEVER MEANWHILE NOT ALL ANALYSTS ARE BULLISH ON FIRST CHICAGO THE BANK HAS BEEN RECENTLY CRITICIZED FOR PAYING TOO MUCH FOR CHICAGO'S LAKE SHORE BANCORP A SMALL COMMUNITY BANK WHICH IT BOUGHT FOR TWO POINT SIX TIMES BOOK VALUE THE PURCHASE RAISED QUESTIONS ON WALL STREET ABOUT WHETHER FIRST CHICAGO WILL SPEND TOO MUCH TO DEFEND ITSELF FROM STRONG REGIONAL RIVALS THE QUESTION IS WHETHER THEIR REACHING OUT TO BROADEN THEIR BASE WILL BE COSTLY TO SHAREHOLDERS SAYS JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH WHO HAS A HOLD RECOMMENDATION ON THE BANK STOCK PRICES BARRELED TO NEW RECORDS AS INVESTORS RODE THE MARKET'S CONTINUING MOMENTUM BONDS AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE CLIMBED THIRTY TWO POINT NINE THREE POINTS TO THREE THOUSAND NINE HUNDRED SEVENTY EIGHT POINT THREE SIX STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX JUMPED TWO POINT NINE ONE TO FOUR HUNDRED EIGHTY ONE POINT SIX ONE AND THE NASDAQ COMPOSITE INDEX SURGED THREE POINT NINE FOUR TO EIGHT HUNDRED POINT FOUR SEVEN ALL WERE RECORDS INVESTORS PILED INTO ECONOMICALLY SENSITIVE STOCKS ESPECIALLY ALUMINUM AND AUTO CONCERNS ALUMINUM STOCKS BENEFITED FROM REPORTS THAT MAJOR ALUMINUM PRODUCING COUNTRIES AGREED TO CUT OUTPUT AUTO STOCKS WERE BUOYED BY EXPECTATIONS OF CONTINUED IMPROVEMENT IN THE U. S. CAR INDUSTRY INVESTORS ALSO WERE ENCOURAGED BY COMMENTS ON THE ECONOMY BY FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN AS THE MARKET CLOSED MANY TRADERS EXPRESSED CONFIDENCE THAT THE FOUR THOUSAND BARRIER ON THE DOW WILL SOON BE BREACHED QUOTE TOMORROW FOR SURE WITH THE MOMENTUM GOING THE WAY IT IS QUOTE SAID PETER DAPUZZO SENIOR MANAGING DIRECTOR AT CANTOR FITZGERALD IN NEW YORK HE ADDED HOWEVER THAT PROFIT TAKING AFTER CROSSING THAT MILESTONE MAY LEAVE THE INDUSTRIAL AVERAGE BELOW FOUR THOUSAND AT THE CLOSE ECONOMIC AND MONETARY CONDITIONS LOOK SO FAVORABLE THAT MANY STRATEGISTS ARE HARD PRESSED TO FIND A DARK CLOUD ON THE HORIZON JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL AND COMPANY SAID ONE POSSIBLE DANGER IS POLITICAL OR ECONOMIC DISINTEGRATION IN RUSSIA IT'S A VOLATILE SITUATION THAT COULD BREAK DOWN AT ANY TIME HE SAID BUT WAITING FOR THAT TO HAPPEN COULD BE HAZARDOUS TO YOUR WEALTH BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY NOTED THAT THE STOCK MARKET IS STILL BENEFITING FROM HUGE SEASONAL INFLOWS INTO MUTUAL FUNDS RIGHT NOW WE'RE STILL IN THE MOST FAVORABLE PART OF THAT CYCLE MR. WIEN SAID BUT HE EXPECTS THE FLOOD INTO MUTUAL FUNDS TO SLOW IN FEBRUARY AND MARCH IN PREPARATION FOR A STOCK MARKET DOWNTURN OF AS MUCH AS TEN PERCENT IN THE NEXT FEW MONTHS MR. WIEN HAS BEEN INCREASING THE CASH PORTION OF HIS PORTFOLIO MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER AND COMPANY SAID MANY INVESTORS WHO VENTURED OVERSEAS WERE RATTLED BY THE RECENT SHARP PRICE SWINGS IN FOREIGN MARKETS A LOT OF MOMENTUM PLAYERS ARE AFRAID TO GO OVERSEAS NOW SO THEY'RE COMING HOME MR. METZ SAID BUT HE ARGUED THAT PRICES IN THE U. S. ARE CLIMBING TO DANGEROUS LEVELS WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED THREE POINT FOUR SEVEN TO ONE HUNDRED EIGHTEEN POINT SIX OH STOCK PRICES RALLIED VOLUME TOTALED THREE HUNDRED TWENTY TWO POINT EIGHT MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND THREE HUNDRED NINETY SIX ISSUES ROSE AND SEVEN HUNDRED THIRTY THREE FELL BOND PRICES FELL THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE LOST MORE THAN ONE QUARTER POINT OR MORE THAN TWO DOLLARS AND FIFTY CENTS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT TWO THREE PERCENT THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN THREE FOUR FIVE MARKS AND ONE HUNDRED EIGHT POINT SEVEN OH YEN COMPARED WITH ONE POINT SEVEN FOUR TWO FIVE MARKS AND ONE HUNDRED TEN YEN FRIDAY IT'S ENOUGH TO MAKE YOU BEG FOR A REST STOP QUOTE WITH BUMPER TO BUMPER TRAFFIC EXPECTED ON THE VAUNTED INFORMATION SUPERHIGHWAY CONSUMERS ARE APT TO BE BLINDED BY THE GLARE OF ONCOMING TECHNOLOGIES QUOTE SAYS FORTUNE MAGAZINE REMEMBER SOME CUSTOMERS WILL WANT TO BE CHAUFFEURED OTHERS WILL WANT THE WHEEL THEMSELVES BUT ONE WAY OR ANOTHER ALL WILL BE IN THE DRIVER'S SEAT THE CITY OF PLANO TEXAS SHOULD HAVE AN ON RAMP TO THE INFORMATION SUPERHIGHWAY A LOCAL SCHOOL OFFICIAL TELLS A REPORTER WE DON'T WANT TO BE TOO FAR ON THE MEDIAN AND TOO FAR ON THE CURB THE NETWORKS SAYS COMEDIAN SINBAD HOSTING CABLE T. V.'S ACE AWARDS ARE NO LONGER THE BIG HOJO ON THE INFORMATION SUPERHIGHWAY THE METAPHORS ARE PILING UP ON THE ELECTRONIC INTERSTATE LIKE JACKKNIFED TRACTOR TRAILERS AND THERE ISN'T AN OFF RAMP IN SIGHT QUOTE I THOUGHT WE COULD KEEP TORTURING THE ANALOGY UNTIL PEOPLE STOPPED USING IT QUOTE SAYS ALLEN RUCKER THE LOS ANGELES COMEDY WRITER RESPONSIBLE FOR THE SINBAD JOKE WE PROBABLY FAILED INDEED THE INFORMATION SUPERHIGHWAY SEEMS TO HAVE UNLIMITED MILEAGE AND NO BRAKES THE PHRASE MERGED INTO THE FAST LANE AS POLITICIANS TOUTED ROAD MAPS FOR HANDLING RAPID CHANGES IN TELECOMMUNICATIONS NOW IT'S VEERING OUT OF CONTROL THE MEDIA ARE THE BIGGEST ROAD HOGS CONSIDER THE ACCOUNTS OF A LOS ANGELES SPEECH LAST MONTH BY VICE PRESIDENT AL GORE WHO CLAIMS TO HAVE FATHERED THE TERM INFORMATION SUPERHIGHWAY DEPENDING ON THE STORY THAT YOU READ MR. GORE WAS STEERING DOWN THE INFORMATION SUPERHIGHWAY RAISING SPEED LIMITS INSTALLING CHECKPOINTS OFFERING AN EASIER RIDE EARNING HIS LEARNER'S PERMIT OR PUTTING THE PEDAL TO THE METAL MR. GORE WAS SEEN ALTERNATIVELY AS HANDING INDUSTRY THE KEYS TO THE TOLLBOOTH OR TRYING TO KEEP DISADVANTAGED PEOPLE FROM BEING QUOTE STRANDED ON THE SHOULDER QUOTE PROMOTERS ARE HITCHING RIDES ON THE INFO PIKE TOO T. V. ADS FOR M. C. I. COMMUNICATIONS CORPORATION TOUTING THE NEW ROAD HAVE CHILD ACTRESS ANNA PAQUIN SAYING WITH AN ELEVEN YEAR OLD'S ENTHUSIASM ITS SPEED LIMIT WILL BE THE SPEED OF LIGHT DAVID LETTERMAN IN A PROMO SAYS HIS LATE SHOW ON C. B. S. IS LIKE AN INFORMATION SUPERHIGHWAY WITHOUT THE INFORMATION NEW TWISTS IN THE ROAD KEEP TURNING UP A TELEPHONE TRADE GROUP TALKS OF WANTING TO SAVE AN EMERGENCY LANE ON THE SUPERHIGHWAY AN N. B. C. OFFICIAL WARNS OF DRIVE BY SHOOTINGS ON THE INFORMATION SUPERHIGHWAY THERE ARE EVEN SHARP TURNS INTO MIXED METAPHORS ONE OF THEM A REFERENCE TO RIVERBOAT GAMBLERS ON THE MIGHTY THOROUGHFARE ALL OF WHICH RAISES THE QUESTION JUST WHAT IS THE INFORMATION SUPERHIGHWAY ANYWAY THE ANSWER IS AS ELUSIVE AS THE KANSAS HORIZON ON I SEVENTY SOME SAY IT'S A FUTURE NETWORK OF FIBER OPTIC LINES THAT WILL STRETCH ACROSS THE COUNTRY GIVING EVERYBODY HITHERTO UNIMAGINED SERVICES THROUGH THEIR T. V. SETS OTHERS SAY IT'S THE INTERNET AN EXISTING NETWORK THAT ALLOWS PEOPLE TO CONVERSE BY TYPING ON HOME COMPUTERS ACTUALLY THE INFORMATION SUPERHIGHWAY IS WIDE ENOUGH TO INCLUDE A SLEW OF ACTIVITIES RANGING FROM OFF TRACK BETTING TO VIDEOS ON DEMAND HOME SHOPPING AND THE LONG HERALDED PICTURE PHONE NOBODY KNOWS WHETHER ALL THAT MANY PEOPLE WILL ACTUALLY WANT TO GO WITH THE FLOW OF TRAFFIC QUOTE SO FAR IT'S JUST A LOT OF PUFF QUOTE SAYS DENNIS BARON A UNIVERSITY OF ILLINOIS ENGLISH PROFESSOR WHO HAS BEEN TRACKING THE PHRASE QUOTE INFORMATION SUPERHIGHWAY QUOTE STILL HE SAYS THOSE WHO COMPLAIN ABOUT THE PHRASE ARE MERELY ENSHRINING IT IF YOU LISTEN LONG ENOUGH YOU'LL FIND THEM USING IT TOO IT'S A MORONIC TERM COMPLAINS PAUL SAFFO OF THE INSTITUTE FOR THE FUTURE A MENLO PARK CALIFORNIA CONSULTING FIRM NOBODY WOULD DARE USE IT ON THE INTERNET HE SAYS OTHER USERS WOULD CONSIDER THEM DWEEBS BUT A FEW MINUTES LATER HE IS CALLING NEXT INCORPORATED WORKSTATION COMPUTERS THE DE LOREAN OF THE INFORMATION HIGHWAY SEAGATE TECHNOLOGY INCORPORATED CHIEF EXECUTIVE ALAN SHUGART MAKES FUN OF THE TERM TOO BUT AIDES SAY THAT WHILE RIDING ON THE NEW JERSEY TURNPIKE RECENTLY HE SUCCUMBED TO THE LURE OF THE ROAD BOASTING HIS DISK DRIVE COMPANY WAS OUT TO PUT UP THE SIGNS SELL THE MAPS AND OWN THE RESTAURANTS ON THE SELFSAME INFORMATION SUPER HIGHWAY THE INDUSTRY HAS FLIRTED WITH ROAD IMAGERY SINCE AS FAR BACK AS NINETEEN TEN WHEN AMERICAN TELEPHONE AND TELEGRAPH COMPANY IN ITS ANNUAL REPORT PROMISED A TELEPHONE SYSTEM AS UNIVERSAL AND AS EXTENSIVE AS THE HIGHWAY SYSTEM VICE PRESIDENT GORE'S FATHER SENATOR ALBERT GORE OF TENNESSEE WAS A BIG WHEEL IN ESTABLISHING THE INTERSTATE HIGHWAY SYSTEM AS A CHILD YOUNG AL SAT IN ON CONGRESSIONAL HEARINGS THAT DECIDED THE COLOR OF SIGNS AND THE SIZE OF LANES ON THE INTERSTATES HE SAYS HE COINED THE PHRASE QUOTE INFORMATION HIGHWAY QUOTE IN NINETEEN SEVENTY EIGHT DURING A MEETING WITH COMPUTER INDUSTRY OFFICIALS MOST PEOPLE INTERESTINGLY ARE WILLING TO GIVE FULL CREDIT TO MR. GORE FOR COMING UP WITH THE PHRASE WHICH HE MADE THE CENTER STRIP OF HIS VICE PRESIDENTIAL CAMPAIGN IN NINETEEN NINETY TWO NOW SOME FOLKS SEEM ACTUALLY TO CONFUSE AL JUNIOR'S HIGHWAYS WITH AL SENIOR'S FEDERAL HIGHWAY ADMINISTRATION OFFICIALS SAY THEY HAVE BEEN ASKED IF THEY WORK ON THE INFORMATION SUPERHIGHWAY TALK SHOW HOST DICK CAVETT KICKING OFF A RECENT INFORMATION SUPERHIGHWAY SUMMIT IN LOS ANGELES SAID WHEN I THINK OF HIGHWAYS I THINK OF SOMETHING LONG AND BORING THAT FIFTY THOUSAND PEOPLE ARE KILLED ON EVERY YEAR AND AS WAS BOUND TO HAPPEN SOME COMMUNICATIONS INDUSTRY LEADERS THINK THE METAPHOR HAS RUN OUT OF GAS BUT ALTERNATIVES SUCH AS INFORMATION CANALS AND INFORMATION SKYWAYS DON'T HAVE WHEELS TECHNOLOGY CONSULTANT CHARLES MORRIS IS PROMOTING INFORMATION OCEAN DATA FLOAT AROUND UNTIL NEEDED BUT EVEN THAT ISN'T VAST ENOUGH FOR ONE WHITE HOUSE AIDE WHO USES IDEASPACE DISCREETLY HE SAYS TO AVOID OFFENDING MR. GORE THE VICE PRESIDENT ISN'T YET READY TO YIELD ON THE QUOTE INFORMATION SUPERHIGHWAY QUOTE HE STILL THINKS IT'S AN APPROPRIATE METAPHOR A SPOKESWOMAN SAYS BUT LATELY EVEN MR. GORE HAS ROLLED HIS EYES AT WHAT HE HAS WROUGHT FOR EXAMPLE A BUSINESS WORRIED ABOUT BECOMING ROADKILL MR. GORE HIMSELF NOW SOMETIMES SPEAKS OF THE METAPHOR PROOF NATIONAL INFORMATION INFRASTRUCTURE STILL THE INFORMATION SUPERHIGHWAY ROLLS ON THE AMERICAN DIALECT SOCIETY VOTED THE PHRASE WORD OF THE YEAR FOR NINETEEN NINETY THREE TO WATCH A LOT OF SUPER BOWL GAMES IS TO BECOME A CONNOISSEUR OF ROUTS THE ONE SUNDAY NIGHT BY THE DALLAS COWBOYS OVER THE BUFFALO BILLS WAS UNUSUAL IN THAT THE LOSERS LED AT HALFTIME AND WERE IN A TIE UNTIL ALMOST MIDWAY THROUGH THE THIRD QUARTER BUT ONCE THE TIDE HAD TURNED THE GAME HAD THE FEELING OF INEVITABILITY EVEN TO THE PARTICIPANTS QUOTE OUR IDEA IS TO POUND ON THE OTHER TEAM 'TIL THEY CAN'T TAKE IT ANYMORE QUOTE SAID ONE OF THE CHIEF POUNDERS THE COWBOYS' THREE HUNDRED TWENTY FIVE POUND OFFENSIVE GUARD NATE NEWTON FOOTBALL'S A SIXTY MINUTE GAME AND EVEN WHEN WE WERE BEHIND WE DIDN'T THINK ANYBODY COULD STAY WITH US THAT LONG THE FINAL SCORE IN THE SPIFFY GEORGIA DOME WAS THIRTY TO THIRTEEN BUT IT COULD HAVE BEEN WORSE FROM BUFFALO'S STANDPOINT DALLAS OUTSCORED ITS MISTAKE PRONE FOE TWENTY FOUR TO ZERO IN THE SECOND HALF AND THE COUNT WOULD HAVE BEEN TWENTY EIGHT TO ZERO IF A LATE FOURTH QUARTER DRIVE THAT BROUGHT THE WINNERS TO A FIRST DOWN AND GOAL FROM THE BUFFALO ONE YARD LINE HADN'T BEEN STALLED BY A PENALTY AND ENDED WITH A FIELD GOAL NO MATTER THOUGH TURNOVERS USUALLY DETERMINE A GAME'S OUTCOME AND WE HANDED THEM SEVERAL BUT REALLY THEY'RE AN AWFULLY GOOD TEAM SAID A WEARY MARV LEVY THE COACH OF A TEAM THAT HAS NOW LOST FOUR OF THESE PROFESSIONAL FOOTBALL CHAMPIONSHIP GAMES IN SUCCESSION THEY HAVE GREAT RUN PASS BALANCE ON OFFENSE AND A VERY GOOD DEFENSE TO BEAT THEM YOU HAVE TO HAVE DONE MORE THAN WE DID THE OUTCOME HAD BEEN WIDELY ANTICIPATED THE COWBOYS WERE A HEFTY TEN AND ONE HALF POINT FAVORITE GOING IN AND WHILE THE BOYS SKILLS WERE THE IMMEDIATE CAUSE HISTORY ALSO SEEMED TO BE ON THEIR SIDE THIS WAS EDITION XXVIII OF A GAME SO SELF IMPORTANT THAT IT EMPLOYS THE NUMBERS OF THE CAESARS AND THE FIFTEENTH OF THEM HAVE BEEN DECIDED BY THE FOURTEENTH POINTS OR MORE THE COMMON DEFINITION OF I SIDEDNESS THROW IN THE ADDITIONAL THE FOURTH GAMES IN WHICH THE MARGIN HAS BEEN X. TO THE THIRTEENTH POINTS AND YOU HAVE A PRECEDENT THAT'S WEIGHTY INDEED GIVEN THE COWBOYS' FIFTY TWO TO SEVENTEEN IN EARTHBOUND ARABIC NUMERALS VICTORY IN LAST YEAR'S BIG GAME OVER MUCH THE SAME BUFFALO TEAM AND THE WASHINGTON REDSKINS' THIRTY SEVEN TO TWENTY FOUR CONQUEST OF THE BILLS IN THE NINETEEN NINETY TWO CONTEST QUITE A BIT OF THE PREGAME DISCUSSION DWELT ON WHY THE SUPER BOWL IS SO OFTEN UNCOMPETITIVE MOST OF THE ANSWERS HAD TO DO WITH SUCH NOTIONS AS MOMENTUM SWINGS AND THE RISK TAKING ASSOCIATED WITH THE GAME'S ALL OR NOTHING NATURE CLOSER TO THE TRUTH THOUGH IS THE FACT THAT ONE TEAM IN THESE THINGS HAS BEEN A HECKUVA LOT BETTER THAN THE OTHER FOR ALL ITS ASSERTED SUBTLETIES FOOTBALL IS A GAME IN WHICH APPEARANCES RARELY DECEIVE AND ONE GANG CAN BE JUST PLAIN BIGGER TOUGHER AND QUICKER THAN ITS FOE THE COWBOYS QUALIFIED ON ALL COUNTS SUNDAY THEIR SHEER PHYSICAL DOMINANCE CAME THROUGH BEST IN THE THIRD QUARTER DRIVE THAT PUT THEM AHEAD TO STAY IT INVOLVED EIGHT PLAYS THAT COVERED SIXTY FOUR YARDS SEVEN OF WHICH WORTH SIXTY ONE YARDS WERE RUNS BY STUMPY EMMITT SMITH THE BRILLIANT RUNNING BACK WHO WAS NAMED THE GAME'S MOST VALUABLE PLAYER FIVE OF THE RUNS WENT TO THE RIGHT BEHIND THE BLOCKS OF KEVIN GOGAN THE SIX FOOT SEVEN THREE HUNDRED TWENTY EIGHT POUND RIGHT GUARD ERIK WILLIAMS THE SIX FOOT SIX THREE TWENTY FOUR P. O. U. N. D. RIGHT TACKLE AND THE ABOVEMENTIONED NEWTON WHO SWUNG HIS SIX FOOT THREE FRAME OVER FROM HIS LEFT GUARD STATION PUT ME ERIK AND NATE IN FRONT OF EMMITT AND THE DEFENSE HAS TROUBLE SEEING HIM GOGAN GIGGLED LATER QUOTE WE COULD HAVE TOLD 'EM WE WERE COMING AND IT WOULDN'T HAVE MATTERED MUCH QUOTE SAID NEWTON DALLAS'S NEXT TOUCHDOWN ON A THIRTY FOUR YARD DRIVE SET UP BY A JAMES WASHINGTON INTERCEPTION OF A JIM KELLY PASS WAS MUCH THE SAME WITH SMITH RUNNING ON SIX OF ITS NINE PLAYS IT GAVE THE BOYS A TWENTY SEVEN TO THIRTEEN LEAD THAT WASN'T ABOUT TO BE SURMOUNTED SAFETY WASHINGTON WAS THE WINNERS' MAIN DEFENSIVE HERO BESIDES HIS INTERCEPTION HE CAUSED A FIRST QUARTER FUMBLE BY THE BILLS' THURMAN THOMAS THAT SET UP A DALLAS FIELD GOAL AND PICKED UP ANOTHER BOBBLE BY POOR THOMAS ON THE THIRD PLAY OF THE SECOND HALF AND ZIGZAGGED FORTY SIX YARDS WITH IT FOR THE TOUCHDOWN THAT TIED THE SCORE AT THIRTEEN THE GLIB LOS ANGELES NATIVE IS MAKING A HABIT OF SUCH HEROICS AN INTERCEPTION OF HIS ALSO FIGURED PROMINENTLY IN LAST YEAR'S SUPER BOWL AGAIN THOUGH IT WAS DALLAS'S OVERALL DEFENSE THAT SHONE EARLIER IN THE WEEK KELLY HAD SAID HIS TEAM COULDN'T WIN BY COMPLETING A LOT OF SHORT PASSES BUT THAT WAS EXACTLY WHAT DALLAS FORCED UPON HIM THIRTY ONE COMPLETIONS FOR TWO HUNDRED SIXTY YARDS AND THE EFFORT DEMANDED A PERFECTION HE COULDN'T SUSTAIN WE KNEW MISTAKES WERE INEVITABLE AND WE JUST WANTED TO BE THERE WHEN THEY HAPPENED WASHINGTON NOTED IN WINNING A SECOND STRAIGHT NATIONAL FOOTBALL LEAGUE TITLE THE COWBOYS JOINED ELITE COMPANY ONLY GREEN BAY MIAMI PITTSBURGH AND SAN FRANCISCO HAVE DONE THAT DURING THE SUPER BOWL ERA THEY ARE A YOUNG TEAM IN KEY POSITIONS SMITH IS TWENTY FOUR YEARS OLD MONSTER BLOCKER WILLIAMS IS TWENTY FIVE AND QUARTERBACK TROY AIKMAN AND MIDDLE LINEBACKER KEN NORTON ARE TWENTY SEVEN AND DESPITE THE VAGARIES OF PLAYER FREE AGENCY AND LEAGUE SALARY CAPS THEY WILL BE FAVORED TO DO THIS AGAIN NEXT YEAR ONE POSSIBLE FLY IN THEIR OINTMENT IS INJURIES AIKMAN SUFFERED SHOULDER WOES DURING THE SEASON PLUS A CONCUSSION THAT BLANKED OUT MOST OF THE PREVIOUS WEEK'S PLAYOFF WIN AGAINST THE SAN FRANCISCO FORTY NINE ERS SMITH ALSO HAD SHOULDER INJURIES THAT BODE LESS WELL FOR A RUNNER THAN A PASSER ANOTHER IS THE RELATIONSHIP BETWEEN COWBOY COACH JIMMY JOHNSON AND OWNER JERRY JONES WHOSE EGOS MAY NEED MORE ROOM THAN TEXAS CAN OFFER JOHNSON'S HYPE WEEK PRONOUNCEMENTS SHIFTED BETWEEN EXPRESSING LOVE FOR THE COWBOYS TO HINTING THAT HE'D RELISH THE CHALLENGE OF BUILDING AN N. F. L. EXPANSION TEAM IT WAS HARD TO KNOW WHICH STANCE TO TAKE SERIOUSLY FOR A REASON JOHNSON HIMSELF PROVIDED RELATING HOW AS COACH AT OKLAHOMA STATE UNIVERSITY HE'D TOLD BLUECHIP RECRUIT THURMAN THOMAS HE'D STAY FOR FOUR YEARS ONLY TO LEAVE FOR THE UNIVERSITY OF MIAMI BEFORE THE INK WAS DRY ON THOMAS'S COMMITMENT HE GAVE THIS EXPLANATION I DIDN'T EXACTLY PROMISE HIM I'D STAY IT WAS MORE LIKE IT WAS MY OPINION AT THE TIME CAN'T EXACTLY TAKE THAT TO THE BANK CAN YOU BRITISH NOVELIST BIOGRAPHER AND JOURNALIST A. N. WILSON WHOSE PREVIOUS TWO BOOKS WERE A LIFE OF JESUS AND A POLEMICAL LOOK AT THE ACCELERATING EMBARRASSMENTS OF THE ROYAL HOUSE OF WINDSOR FINDS AMPLE SCOPE TO DEPLOY HIS SEEMINGLY INCONGRUOUS TALENTS FOR OUT OF BOUNDS SATIRE AND POIGNANT PORTRAYALS OF SOULS AT THE ENDS OF THEIR TETHERS IN HIS NEW NOVEL ABOUT AN ANGLICAN CLERGYMAN PLUNGED INTO THE MIDLIFE CRISIS TO END ALL MIDLIFE CRISES FRANCIS KREER HAPLESS HERO OF QUOTE THE VICAR OF SORROWS QUOTE NORTON THREE HUNDRED NINETY ONE PAGES TWENTY THREE DOLLARS ROTELY CONDUCTS SERVICES ON BEHALF OF A RELIGION IN WHICH HE NO LONGER BELIEVES AND COLD SHOULDERS A WELL MEANING BUT DOPEY WIFE WITH WHOM HE IS NO LONGER IN LOVE HE FINDS SOME SATISFACTION IN HIS BOOKS AND SATISFACTION OF A DEEPER KIND IN THE COMPANIONSHIP OF HIS CHESS PLAYING ADOLESCENT DAUGHTER WHOSE POOR MOTHER IS LEFT TO CONFIDE HER SORROWS TO A CACHE OF STUFFED ANIMALS PRESERVED FROM HER CHILDHOOD INTELLECTUAL HIGH TONED AND MILDLY EFFEMINATE FRANCIS IS AN UNRECONSTRUCTED MOTHER'S BOY WHO STILL WORSHIPS HIS DOLLFACED OCTOGENARIAN MUMMY SHE IN TURN STILL THINKS OF HER FORTY SEVEN YEAR OLD SON AS LITTLE BOY MUMMY DIES UNEXPECTEDLY AFTER A SUDDEN FIT OF PIQUE IN WHICH SHE ALTERS HER WILL TO LEAVE HALF OF HER SON'S INHERITANCE TO AN OLD WARTIME FLAME WITH THE DISCOVERY OF MUMMY'S BETRAYAL AND HER HERETOFORE UNSUSPECTED WARTIME FLING FRANCIS'S WORLD BEGINS TO FALL APART AT THIS CRITICAL POINT THE VICAR'S VILLAGE OF DITCHAM IS INVADED BY A RAGTAG CARAVAN KNOWN AS THE TRAVELLERS MOST OF THE LOCALS TAKE A DIM VIEW OF THESE ITINERANT INTERLOPERS THOUGH FRANCIS IS STRUCK BY THE ETHEREAL LOVELINESS OF ONE YOUNG WOMAN IN THEIR MIDST JAY DUNBAR A FORMER VIOLIN STUDENT WHO IS BEGINNING TO GROW AS DISILLUSIONED WITH HER GYPSY LIFE AS FRANCIS IS WITH HIS STAGNANT ONE THE STAGE IS SET FOR COMEDY OR TRAGEDY AS AN INCREASINGLY QUIXOTIC FRANCIS PURSUES HIS NEW FOUND LOVE AND MR. WILSON PILES UP ENOUGH MISTAKEN IDENTITIES MISSED CONNECTIONS AND ODD COUPLINGS TO STOCK AN ENTIRE SEASON OF BEDROOM FARCES BUT FOR ALL ITS GENUINELY HILARIOUS MOMENTS THIS NOVEL HIS FOURTEENTH TO DATE IS ULTIMATELY A VERY BLEAK VISION OF A WORLD IN WHICH THE PURSUIT OF LOVE ENGENDERS LUNACY AND NO GOOD DEED GOES UNPUNISHED IN HIS TRANSFORMATION FROM COMFORTABLE INSULATED CLERIC TO DISPOSSESSED DISGRACED VICAR OF SORROWS FRANCIS KREER ENDS UP LOSING NOT ONLY WORLDLY MATERIAL THINGS BUT THE INNER PEACE OF MIND HE SO ARDENTLY SOUGHT MR. WILSON'S DEFT HANDLING OF THIS MATERIAL IS MARRED BY AN OCCASIONAL TOUCH OF CRUELTY THAT LENDS A DISTINCT CHILL TO THE PROCEEDINGS IT IS SOMETHING OF A RELIEF TO TURN ONE'S ATTENTION TO ANOTHER SOUL IN DISTRESS PORTRAYED WITH GREATER SYMPATHY AND OPTIMISM THE MAN WHO NARRATES MARK SALZMAN'S THIRD BOOK THE SOLOIST RANDOM HOUSE TWO HUNDRED SEVENTY TWO PAGES TWENTY ONE DOLLARS IS A THIRTY FIVE YEAR OLD FORMER CHILD PRODIGY WHO'S ABANDONED HIS CONCERT CAREER FOR TEACHING A SOLOIST IN MORE WAYS THAN ONE RENNE SUNDHEIMER LIVES ALONE IN LOS ANGELES WITHOUT EVEN A PET HE HAS NO CLOSE FRIENDS AND IS STILL A VIRGIN EVEN HIS BELOVED CELLO IS LESS A COMFORT TO HIM THAN A DAILY REMINDER OF THE PROBLEM THAT FORCED HIM OFF THE CONCERT STAGE EIGHTEEN YEARS EARLIER MY NATURAL GIFT FOR INTONATION TURNED AGAINST ME MY EAR BEGAN TO EXAMINE EACH NOTE SO INTENSELY THAT EVEN A VARIATION OF A SINGLE CYCLE IN PITCH BOTHERED ME NOT EVEN I COULD PLAY WITH THAT KIND OF ACOUSTIC PRECISION WHICH MADE IT NEARLY IMPOSSIBLE FOR ME TO CONCENTRATE ON THE MELODIC LINE AND AS A RESULT MY PLAYING BECAME FRAGMENTED AND WEAK CONCERTS BECAME INTERMINABLE HUMILIATIONS INSTEAD OF EUPHORIC EXPERIENCES QUOTE HE EXPLAINS WITH AN UNABASHED SELF ABSORPTION THAT MANAGES TO BE ODDLY MOVING BROUGHT UP BY OVERANXIOUS GERMAN JEWISH REFUGEE PARENTS TO CHANNEL HIS ENERGIES INTO NOTHING BUT HIS MUSIC RENNE FEELS UNEQUIPPED TO DEAL WITH MANY ASPECTS OF ORDINARY LIFE THE FAME HE WOULD EVENTUALLY ENJOY AS A WORLD CLASS CELLIST HIS MOTHER ALWAYS ASSURED HIM WOULD AUTOMATICALLY BRING HIM ALL THE FRIENDSHIPS AND ROMANCES HE'D MISSED OUT ON WHILE GROWING UP THINGS HAVE NOT WORKED OUT AS PLANNED BUT RENNE'S LIFE IS ABOUT TO BE CHANGED BY TWO TOTALLY UNPLANNED AND UNRELATED EVENTS A SUMMONS TO JURY DUTY AND A REQUEST TO LISTEN TO AN UNKNOWN SIX YEAR OLD KOREAN BOY TINY TONGUE TIED KYUNG HEE KIM WHO CAN BARELY LIFT HIS KIDDIE CELLO PLAYS LIKE AN ANGEL WITH A MUSICALITY UNCOMMON AMONG CHILD PRODIGIES AFTER SOME INITIAL SKEPTICISM RENNE IS SOON BUSY DEVISING INGENIOUS WAYS TO DRAW OUT HIS SHY PUPIL ENGAGE HIS IMAGINATION AND BUILD HIS TECHNIQUE SERVING AT THE SAME TIME ON A JURY TRYING A MURDER CASE RENNE FINDS HIMSELF ATTRACTED TO A SEXY FEMALE JUROR WHO DOESN'T KNOW MOZART FROM MOTOWN AND HE FEELS INVOLVEMENT OF A VERY DIFFERENT KIND IN THE CASE ITSELF AS HE TRIES TO ASSESS THE EXTENT TO WHICH AN UNBALANCED YOUNG MAN WHO BEAT HIS ZEN TEACHER TO DEATH SHOULD BE HELD RESPONSIBLE FOR HIS ACTIONS MR. SALZMAN PROVIDES ADMIRABLY CLEAR EXPOSITIONS OF EVERYTHING FROM COURT PROCEDURE TO MUSIC TRAINING IN AN UNASSUMING MANNER BUT PERHAPS THE MOST IMPRESSIVE ASPECT OF THIS NOVEL IS THE SUBTLETY OF THE WAYS IN WHICH RENNE IS CHANGED BY HIS EXPERIENCES GOING BEYOND WHAT MIGHT MERELY HAVE BEEN THE STEREOTYPICAL AND THE MELODRAMATIC MR. SALZMAN HAS CREATED AN ENGAGING FRESHLY OBSERVED AND UTTERLY CONVINCING PORTRAIT OF A YOUNG MAN IN TRANSITION TALKS AIMED AT SALVAGING THE TROUBLED EURO DISNEY S. C. A. THEME PARK HAVE RUN INTO AN UNEXPECTED OBSTACLE EVEN BEFORE THEY START ANGRY FRENCH BONDHOLDERS WHO ARE DEMANDING REPRESENTATION AT THE NEGOTIATIONS AND WANT WALT DISNEY COMPANY TO COME TO THEIR RESCUE SUCH DEMANDS WOULD NORMALLY GET SHORT SHRIFT IN FRANCE WHERE SMALL INVESTORS RARELY HAVE ENOUGH CLOUT TO DEFEND THEIR INTERESTS BUT BECAUSE OF AN ODD DISCREPANCY IN THE TERMS ATTACHED TO AN ISSUE OF EURO DISNEY BONDS BANKERS FAMILIAR WITH THE SITUATION SAY THE HOLDERS IN THIS CASE POSE A PARTICULARLY COMPLEX LEGAL PROBLEM THAT COULD HAMPER THE RESTRUCTURING TALKS AT THE SAME TIME CREDIT RATING AGENCIES AND ANALYSTS HAVE BEEN EXAMINING THE EXPOSURE OF KEY BANKS INVOLVED IN EURO DISNEY LENDING WHILE THE RISKS GENERALLY SEEM WELL SPREAD THEY ARE CONCLUDING THAT SOME FRENCH BANKS IN PARTICULAR RECENTLY PRIVATIZED BANQUE NATIONALE DE PARIS COULD FACE EMBARRASSING LOSSES THE DISCREPANCY CONCERNS FOUR BILLION FRENCH FRANCS SIX HUNDRED SEVENTY SIX POINT FOUR MILLION DOLLARS OF CONVERTIBLE BONDS ISSUED IN JULY NINETEEN NINETY ONE THE ENGLISH LANGUAGE TEXT OF THE PROSPECTUS THAT WAS USED FOR ITS LAUNCH IN THE LONDON MARKET STIPULATES THAT THE TERMS CAN ONLY BE CHANGED IF THERE IS UNANIMITY OF THE HOLDERS THE FRENCH TEXT HOWEVER SAYS THAT ONLY A MAJORITY OF HOLDERS IS NEEDED THE DIFFERENCE REFLECTS THE LACK OF CONSISTENCY IN EUROPEAN ISSUING PRACTICES BUT UNLESS THE BONDHOLDERS CAN SOMEHOW BE LEFT OUT OF THE RESTRUCTURING ALTOGETHER WHICH SEEMS UNLIKELY THE DISSIMILAR LANGUAGE COULD BECOME A LEGAL QUAGMIRE SOME FEAR QUOTE DEALING WITH THE BONDHOLDERS COULD BE VERY PROBLEMATIC QUOTE ADMITS AN OFFICIAL AT ONE BIG CREDITOR BANK INVOLVED IN THE NEGOTIATIONS HE ADDS THAT THE RESTRUCTURING ITSELF PROMISES TO BE ANYTHING BUT EASY NOT LEAST BECAUSE OF THE HIGH STAKES INVOLVED AND THE RELATIVELY SHORT TIME IN WHICH THE PROBLEMS HAVE TO BE RESOLVED EURO DISNEY'S SIXTY CREDITOR BANKS ARE SCHEDULED TO RECEIVE TOMORROW A PRELIMINARY REPORT FROM AUDITORS K. P. M. G. PEAT MARWICK ASSESSING BOTH THE RESORT'S FINANCIAL SITUATION AND ITS REVAMPED BUSINESS STRATEGY FORMAL NEGOTIATIONS WITH BOTH EURO DISNEY AND WALT DISNEY ARE EXPECTED TO START A FEW DAYS LATER ONCE THE BANKS HAVE AGREED ON THEIR TACTICS EURO DISNEY'S FUTURE VIABILITY DEPENDS ON AN AGREEMENT BETWEEN THE PARTIES TO REDUCE ITS TWENTY ONE BILLION FRANCS IN DEBT PROBABLY BY AT LEAST FIFTY PERCENT THROUGH AN EXPECTED MIXTURE OF DEBT WRITE DOWNS AND AN INJECTION OF FRESH CAPITAL AT THE MOMENT THE PARK'S REVENUE IS MORE THAN EATEN UP BY HIGH INTEREST CHARGES WHICH AMOUNTED TO ABOUT ONE POINT SEVEN BILLION FRANCS IN THE LAST FISCAL YEAR ENDED SEPTEMBER THIRTIETH WALT DISNEY WHICH OWNS FORTY NINE PERCENT OF EURO DISNEY S. C. A. THE EUROPEAN OPERATING COMPANY FOR THE PARK HAS SAID IT IS ONLY PREPARED TO CONTINUE FUNDING THE RESORT TO THE END OF MARCH THE BONDHOLDERS ARE REPRESENTED BY A FRENCH ASSOCIATION HEADED BY COLETTE NEUVILLE AN ACTIVIST WHO OFTEN CAMPAIGNS FOR THE RIGHTS OF MINORITY HOLDERS A LEGAL REPORT FOR THE BONDHOLDERS ISSUED YESTERDAY PRESSED FOR THEM TO BE REPRESENTED AT THE TALKS AND GEORGES BERLIOZ THE LAWYER WHO DRAFTED THE REPORT THREATENED LEGAL ACTION IF THEY WERE EXCLUDED IF WE ARE NOT INVITED WE WILL LITIGATE OUR WAY IN MR. BERLIOZ SAID IN A TELEPHONE INTERVIEW ON ONE CRUCIAL POINT MR. BERLIOZ'S REPORT ECHOED DEMANDS MADE BY THE CREDITOR BANKS THEMSELVES NAMELY THAT WALT DISNEY SHOULD CARRY MUCH OF THE BURDEN FOR AN EVENTUAL RESTRUCTURING UNDER EURO DISNEY'S COMPLEX FINANCIAL STRUCTURE INVOLVING A WEB OF SHAREHOLDINGS AND CROSS HOLDINGS WALT DISNEY LARGELY LIMITED ITS DIRECT FINANCIAL RESPONSIBILITY FOR THE PROJECT FOR EXAMPLE MOST OF THE RESORT'S DEBT ISN'T OWED DIRECTLY BY EURO DISNEY TO THE CREDITOR BANKS BUT VIA A NUMBER OF FINANCE COMPANIES THAT OWN THE PARK AND ITS SIX HOTELS AND WITH WHICH EURO DISNEY HAS NO DIRECT SHAREHOLDER LINKS WHILE WALT DISNEY THUS HAS ONLY LIMITED LEGALLY ENFORCEABLE TIES TO THE RESORT THE BONDHOLDERS AND THE BANKS INSIST THAT IT NONETHELESS REMAINS RESPONSIBLE CREDITOR BANKERS IN THE WORDS OF ONE SENIOR OFFICIAL WANT AN ASYMMETRICAL SHARING OF THE PAIN WITH WALT DISNEY BEARING THE BRUNT THE U. S. COMPANY HAS AVOIDED MAKING PUBLIC COMMENTS ON THE RESTRUCTURING TALKS AND A SPOKESMAN WASN'T AVAILABLE TO COMMENT ON SPECIFIC ISSUES RELATING EITHER TO THE BONDHOLDERS OR TO A POSSIBLE SHARING OF THE RESTRUCTURING BURDEN GIVEN THE COMPLEXITIES OF THE TALKS BANKING ANALYSTS AND CREDIT RATING AGENCIES HAVE BEEN TAKING A CLOSE LOOK AT THE RISKS TO CREDITORS ESPECIALLY IN THE EVENT THAT TALKS FAIL AND EURO DISNEY CLOSES THE STILL UNLIKELY WORST CASE SCENARIO FRENCH BANKS ACCOUNT FOR ABOUT FIFTY PERCENT OF EURO DISNEY'S FOURTEEN BILLION FRANCS IN BANK DEBT BY FAR THE BIGGEST CREDITOR IS FRANCE'S STATE OWNED CAISSE DES DEPOTS AND CONSIGNATIONS WHICH HAS OUTSTANDING LOANS IN EXCESS OF FOUR BILLION FRANCS THE ORGANIZATION HOWEVER IS THE GOVERNMENT'S FINANCING ARM AND THUS ISN'T USUALLY SCRUTINIZED LIKE OTHER COMMERCIAL BANKS OF THE OTHER LENDERS RATING AGENCIES IDENTIFY FOUR MAIN CREDITORS BANQUE NATIONALE DE PARIS CREDIT AGRICOLE BANQUE INDOSUEZ AND THE BANQUES POPULAIRES GROUP ALTHOUGH THE BANKS AREN'T DIVULGING THE EXTENT OF THEIR LOANS ANALYSTS SAY THEIR EXPOSURE RANGES BETWEEN ABOUT FIVE HUNDRED MILLION FRANCS AND ONE BILLION FRANCS EACH BEHIND THIS GROUP WITH A SUBSTANTIALLY SMALLER EXPOSURE COME SEVERAL JAPANESE BRITISH AND GERMAN BANKS AND AT LEAST TWO U. S. BANKS CITICORP'S CITIBANK UNIT AND J. P. MORGAN AND COMPANY ALSO HAVE OUTSTANDING LOANS THE BANKS ALL DECLINED OFFICIAL COMMENT OBVIOUSLY WE ARE CONCERNED SAYS SAMUEL S. THEODORE VICE PRESIDENT OF RATING AGENCY MOODY'S FRANCE S. A. BUT FOR MOST OF THE BANKS WE DON'T FEEL THAT THIS EXPOSURE ITSELF IS GOING TO BE A RATING EVENT ADDS SCOTT BUGIE AN ANALYST AT STANDARD AND POOR'S CORPORATION IN PARIS THE RISK IS WELL SPREAD IT'S NOT GOING TO BRING ANY BANK DOWN NONETHELESS THE RISK OF SUBSTANTIAL LOSSES FOR THE MAIN FRENCH BANKS INVOLVED IS CAUSING SOME CONCERN IN PARTICULAR ANALYSTS SAY A POSSIBLE FAILURE OF EURO DISNEY WOULD BE SEVERELY EMBARRASSING FOR BANQUE NATIONALE DE PARIS WHICH WAS PRIVATIZED BY THE FRENCH GOVERNMENT LATE LAST YEAR JUST THIS MONTH MOODY'S PLACED B. N. P. UNDER REVIEW FOR A POSSIBLE DOWNGRADING FOR REASONS NOT CONNECTED TO EURO DISNEY ANALYSTS BELIEVE THE BANK HASN'T YET MADE ANY PROVISIONS FOR POSSIBLE EURO DISNEY LOSSES B. N. P. OFFICIALS SAY PRIVATELY THAT CHAIRMAN MICHEL PEBEREAU IS CONCERNED NOT TO ALLOW EURO DISNEY TO DRAG DOWN EARNINGS SO SOON AFTER PRIVATIZATION THREE HOUSE REPUBLICANS ASKED THE SECURITIES AND EXCHANGE COMMISSION FOR INFORMATION ABOUT HILLARY RODHAM CLINTON'S HOLDINGS IN AN INVESTMENT FUND THAT SOLD SHORT SEVERAL HEALTHCARE STOCKS EARLY LAST YEAR MRS. CLINTON'S HOLDINGS IN VALUEPARTNERS I BECAME PUBLIC KNOWLEDGE IN MAY NINETEEN NINETY THREE WHEN SHE AND PRESIDENT CLINTON FILED FEDERAL FORMS DISCLOSING A VARIETY OF INVESTMENTS MRS. CLINTON HAS BEEN A LIMITED PARTNER SINCE NINETEEN EIGHTY SIX IN VALUEPARTNERS I A HEDGE FUND MANAGED BY SMITH CAPITAL MANAGEMENT OF LITTLE ROCK ARKANSAS HEDGE FUNDS ARE AMONG THE MOST AGGRESSIVE INVESTMENT POOLS BECAUSE THEY CAN BUY STOCKS WITH BORROWED MONEY AND CAN SELL STOCKS SHORT THAT IS BORROW SHARES AND SELL THEM AT CURRENT PRICES IN ANTICIPATION OF REPLACING THEM AT LOWER PRICES HEALTH CARE STOCKS WERE AMONG THE STOCKS SOLD SHORT BY VALUEPARTNERS I LAST YEAR WHEN MANY HEALTH CARE STOCKS WERE FALLING IN VALUE BECAUSE OF THE UNCERTAINTY ABOUT THE IMPENDING RECOMMENDATIONS OF THE PRESIDENTIAL TASK FORCE ON HEALTH CARE REFORM HEADED BY MRS. CLINTON IN A LETTER TO S. E. C. CHAIRMAN ARTHUR LEVITT REPRESENTATIVES BOB LANCASTER OF LOUISIANA CHRISTOPHER COX OF CALIFORNIA AND GEORGE GEKAS OF PENNSYLVANIA ASKED FOR INFORMATION ABOUT SMITH CAPITAL MANAGEMENT AND TRADING IN THE HEDGE FUND IN THE TIME BETWEEN PRESIDENT CLINTON'S ELECTION AND THE TRANSFER OF THE FUND AND OTHER CLINTON ASSETS TO A BLIND TRUST IN JULY QUOTE BOTH THE PRESIDENT AND MRS. CLINTON WOULD CERTAINLY BE AWARE OF THE IMPACT ON THE MARKET OF THEIR STATEMENTS ABOUT THE ADMINISTRATION'S HEALTH CARE PROPOSALS QUOTE THE REPUBLICAN REPRESENTATIVES WROTE TO MR. LEVITT LAST WEEK THE ABILITY OF THE PRESIDENT AND MRS. CLINTON TO AFFECT PRICES IN THE SECURITIES MARKETS IS UNIQUE THE QUESTIONS ALREADY RAISED PUBLICLY CONCERNING THEIR INVESTMENTS PARTICULARLY SHORT SALES MUST BE ADDRESSED S. E. C. OFFICIALS SAID THEY ARE REVIEWING THE LETTER BUT WOULDN'T COMMENT FURTHER SEPARATELY SENATE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE AGAIN REJECTED REPUBLICAN REQUESTS FOR A HEARING ON THE CLINTONS' ARKANSAS REAL ESTATE INVESTMENT THE MICHIGAN DEMOCRAT SAID HE WOULDN'T CONSIDER COMMITTEE ACTIVITY UNTIL SPECIAL COUNSEL ROBERT FISKE JUNIOR HAS COMPLETED HIS INVESTIGATION OF MADISON GUARANTY SAVINGS AND LOAN AND WHITEWATER DEVELOPMENT CORPORATION SENATOR ALFONSE D'AMATO OF NEW YORK AND SEVEN OF HIS FELLOW REPUBLICANS ON THE BANKING COMMITTEE HAVE ASKED FOR HEARINGS ON THE CLINTONS' INVESTMENT IN WHITEWATER WITH THE FORMER CHAIRMAN OF MADISON GUARANTY REPRESENTATIVE BOB LIVINGSTON OF LOUISIANA IS ONE OF THREE REPUBLICANS SEEKING DATA FROM THE SECURITIES AND EXCHANGE COMMISSION ABOUT HILLARY RODHAM CLINTON'S INVESTMENTS AN ARTICLE YESTERDAY INCORRECTLY CALLED HIM BOB LANCASTER I APPRECIATE THE JANUARY SIXTH PAGE ONE ARTICLE ON REVERSE IMMIGRATION OF LATVIANS YOUR DELINEATIONS OF EXPERIENCES BY RETURNING EXILES HAVE SOME CREDIBILITY SINCE MY VISITS TO LATVIA EASILY LED TO SIMILAR CONCLUSIONS BUT YOU WHITEWASH THE SOVIET RUSSIAN ATROCITIES OF NINETEEN FORTY IN LATVIA BY DISMISSING THE RUSSIAN OCCUPATION ALTOGETHER IN NINETEEN FORTY LATVIA WAS INVADED BY THE SOVIET UNION NOT THE NAZIS THE NAZIS FOLLOWED IN NINETEEN FORTY ONE WHEN THE CONSEQUENCES OF THE SOVIET OCCUPATION CAME TO LIGHT SOME THIRTY FIVE THOUSAND LATVIANS HAD BEEN DEPORTED TO UNKNOWN DESTINATIONS EAST OF THE URALS AN UNKNOWN NUMBER OF TORTURED AND MURDERED LATVIANS TURNED UP IN MASS GRAVES AND DUNGEONS OF CHEKA PRISONS THIS WAS THE PRINCIPAL REASON FOR THE FLIGHT TO THE WEST THE ODD TWIST IN LATVIAN HISTORY IS THAT THE NAZI INVASION OF RUSSIA FOR REASONS OTHER THAN SAVING THE LATVIANS FROM EXTINCTION INTERRUPTED THE SOVIET COMMITMENT TO GENOCIDE HAD THE NAZI INVASION OF RUSSIA NOT OCCURRED OR OCCURRED A FEW WEEKS LATER NEITHER THE REVERSE IMMIGRANTS NOR I WOULD EXIST FOR THEIR PARENTS AND MINE WOULD HAVE ENDED THEIR LIVES IN THE GULAGS IN REGARD TO QUOTE LEAN TIMES AT THE SAN FRANCISCO OPERA QUOTE BY DAVID LITTLEJOHN LEISURE AND ARTS JANUARY FIFTH LEAN TIMES THERE ARE RICHLY DESERVED AND FOR MANY MORE REASONS THAN LISTED IN MR. LITTLEJOHN'S ARTICLE THE FINAL INSULT TO ME WAS MARIA EWING'S SLEAZY STRIPTEASE IN SALOME SMALL WONDER THE METROPOLITAN OPERA RELEASED THIS MUST DO IT MY WAY SINGER TO L. A. OPERA THE DECEMBER TWENTY FIFTH ISSUE OF OPERA NEWS REFERS TO HER SHEDDING THE FINAL VEIL WHICH IS THE G. STRING IN THE DANCE OF THE SEVEN VEILS WE ARE TOLD TOTAL NUDITY IS NOT VULGAR IN AN OPERA HOUSE THAT'S A MATTER OF OPINION AFTER VIEWING MS. EWING SPREAD EAGLED IN THE GRAND FINALE WITH ALL HER CELLULITE GLORY EXPOSED I VOWED NEVER AGAIN TO SET FOOT IN THE WAR MEMORIAL OPERA HOUSE TO JOURNEY NORTH LAST APRIL PAY IN EXCESS OF ONE HUNDRED DOLLARS FOR A TICKET PUT UP WITH A DOWNTOWN HOTEL IN A CITY FULL OF WEIRDLY BEHAVING STREET PEOPLE IS MORE THAN WORTH IT WHEN PRODUCTIONS ARE PERFORMED WITH FLAIR TASTE AND TALENT HOWEVER WHEN FLAMBOYANT SENSATIONALIZED VERSIONS ARE OFFENSIVELY OFFERED THAT'S FINIS P. S. I'VE BEEN AN OPERA LOVER SINCE LILY PONS JAN PEERCE ZINKA MILANOV JUSSI BJORLING DOROTHY KIRSTEN ET CETERA A TRUE SINGER COULD BE FAT AND PLANT HERSELF STAGE CENTER AND STILL HOLD THE AUDIENCE ETHNIC CHINESE BUYERS FROM OVERSEAS ARE QUIETLY CHECKING INTO THE U. S. HOTEL INDUSTRY AS JAPANESE INVESTORS CHECK OUT OVER THE PAST SEVERAL YEARS THESE CHINESE BUYERS MOSTLY FROM HONG KONG TAIWAN AND SOUTHEAST ASIA HAVE TAKEN ADVANTAGE OF A SLUMP IN THE U. S. MARKET TO SNAP UP HOTELS AT PRICES FAR BELOW REPLACEMENT COSTS IN SOME CASES THEY ARE BUYING HOTELS FROM JAPANESE INVESTORS WHOSE FINANCIAL TROUBLES HAVE FORCED THEM TO RETREAT FROM THE MARKET THE CHINESE BUYERS HAVE A DIFFERENT APPROACH FROM THE JAPANESE WHO WENT ON A U. S. HOTEL ACQUISITION BINGE IN THE NINETEEN EIGHTIES QUOTE THE CHINESE ARE MORE CAUTIOUS QUOTE SAYS KEVIN MAHONEY OF LODGING CONSULTANT KENNETH LEVENTHAL AND COMPANY OF LOS ANGELES THEY'RE BUYING EXISTING MIDMARKET HOTELS WITH PROVEN CASH FLOW AND THEY'RE PAYING CASH BY CONTRAST THE JAPANESE SPREE WAS MARKED BY INFLATED PRICES LOTS OF DEBT AND A HANDS OFF APPROACH TO MANAGEMENT WITH THE SLUMP OF THE PROPERTY MARKET MANY OF THE JAPANESE ACQUISITIONS IN THE U. S. TURNED INTO FINANCIAL BLACK HOLES FIVE YEARS AGO I WAS SEARCHING TOKYO AND OSAKA FOR INVESTORS FOR U. S. HOTELS SAYS TOM TIMMONS AN INVESTMENT ADVISER FOR THE PROPERTY CONSULTING FIRM VIGERS HONG KONG LIMITED NOW WE ARE LOOKING FOR SELLERS IN JAPAN AND BUYERS IN SOUTHEAST ASIA MANY OF THE NEW BUYERS AMASSED FORTUNES IN OTHER INDUSTRIES BACK HOME IN ASIA OVER THE PAST DECADE NOW THEY ARE SEEKING TO HEDGE THEIR BETS SOME ARE JUST BEGINNING TO DIVERSIFY INTO OFFSHORE INVESTMENTS SAYS MR. TIMMONS THE U. S. IS POLITICALLY STABLE RELATIVE TO OTHER MARKETS AND U. S. REAL ESTATE HAS BEEN IN THE DUMPS FOR THE PAST THREE YEARS WHILE THE BARGAINS LAST ETHNIC CHINESE ARE BUYING EVERYTHING FROM BUDGET MOTELS IN TEXAS TO ALL SUITE HOTELS IN CHICAGO TO HISTORIC PROPERTIES IN NASHVILLE TENNESSEE IN THE PAST TWO YEARS ALONE THEY HAVE SPENT AT LEAST ONE POINT FIVE BILLION DOLLARS ON U. S. HOTELS IN TRANSACTIONS FOR WHICH THE PRICES CAN BE DETERMINED THE REAL FIGURE IS PROBABLY FAR HIGHER THAN THAT MANY SALES AREN'T REGISTERED AS FOREIGN INVESTMENTS OR ARE HANDLED THROUGH INTERMEDIARIES ETHNIC CHINESE HAVE BEEN BIGGER BUYERS RECENTLY THAN EVEN EUROPEANS WHO LONG HAVE BEEN ACTIVE IN THE U. S. SAYS KEN WILSON A BOSTON BASED SENIOR VICE PRESIDENT OF LANDAUER HOSPITALITY ADVISORY GROUP THE NEW ASIAN BUYERS ARE FINDING BARGAINS THAT WOULD HAVE BEEN UNTHINKABLE JUST FIVE OR SIX YEARS AGO TODAY REFLECTING OVERBUILDING THE U. S. SAVINGS AND LOAN CRISIS AND A CUTBACK IN TRAVEL MANY HOTELS ARE ON THE BLOCK AT THIRTY PERCENT TO FORTY PERCENT OF THEIR REPLACEMENT COST CENTRAL PLAZA HOTEL GROUP A PUBLICLY TRADED BANGKOK COMPANY CONTROLLED BY A THAI CHINESE FAMILY LAST SEPTEMBER PURCHASED A NEW ONE HUNDRED SEVENTY EIGHT ROOM HOTEL AT LOS ANGELES INTERNATIONAL AIRPORT FROM THE JAPANESE OWNER DEVELOPER FOR TEN MILLION DOLLARS IN CASH THE JAPANESE COMPANY MARUKO INCORPORATED A SUBSIDIARY OF THE CONSTRUCTION CONCERN KAJIMA CORPORATION HAD SUNK SIXTEEN MILLION DOLLARS INTO THE HOTEL BUT NEVER OPENED IT THE SAME MONTH MUI GROUP A MALAYSIAN CONGLOMERATE HEADED BY AN ETHNIC CHINESE BOUGHT FOR EIGHTEEN MILLION DOLLARS THE THREE HUNDRED ROOM MARRIOTT HOTEL IN HOUSTON ALONG WITH AN ADJACENT OFFICE BUILDING AND PARKING GARAGE MUI SAYS THE REPLACEMENT VALUE FOR THE PROPERTIES IS FIFTY MILLION DOLLARS EVEN COMPANIES FROM MAINLAND CHINA ARE LOOKING AROUND YUKUO TAKENAKA PRESIDENT OF LOS ANGELES BASED TAKENAKA AND COMPANY SAYS HIS INVESTMENT COMPANY'S MAINLAND CLIENTS ARE SEEKING INDIVIDUAL U. S. HOTELS TO PURCHASE AT LEAST ONE MAINLAND CHINESE COMPANY ALREADY HAS TAKEN THE LEAP IN NINETEEN NINETY TWO AIR CHINA THE BEIJING BASED AIRLINE PURCHASED THE ONE HUNDRED FIFTY ROOM RAMADA INN AT SAN FRANCISCO INTERNATIONAL AIRPORT BUT THE BULK OF THE CHINESE BUYERS CONTINUE TO COME FROM HONG KONG AND TAIWAN SAM CHANG A U. S. BASED TAIWANESE WHO REPRESENTS INVESTORS FROM HONG KONG AND TAIWAN IS AN EXAMPLE MR. CHANG AND HIS PARTNERS SINCE NINETEEN NINETY ONE HAVE BOUGHT THIRTEEN HOTELS IN THE NORTHEASTERN U. S. THEIR INVESTMENT VEHICLE ORIENT HOTELS GROUP OF STAMFORD CONNECTICUT SPENT ONE HUNDRED MILLION DOLLARS ON THE ACQUISITIONS HALF IN CASH BUT IN MANY CASES NOT A LOT OF CASH MR. CHANG SAYS THEY PAID FOUR POINT THREE MILLION DOLLARS TO BUY THE THREE HUNDRED EIGHTY ROOM HOLIDAY INN CROWNE PLAZA IN STAMFORD A HOTEL THAT WOULD COST ABOUT THIRTY MILLION DOLLARS TO BUILD TODAY THE CHENG FAMILY OF HONG KONG WHOSE PUBLICLY TRADED NEW WORLD DEVELOPMENT COMPANY ALREADY OWNS RENAISSANCE HOTELS AND RESORTS LAST SUMMER PURCHASED STOUFFER HOTELS AND RESORTS FROM NESTLE S. A. THE THIRTY EIGHT UNIT STOUFFER CHAIN WHICH INCLUDES A BIG CHUNK OF REAL ESTATE WENT FOR MORE THAN ONE BILLION DOLLARS ACCORDING TO A SOURCE CLOSE TO THE CHENGS ANOTHER BIG PLAYER FROM HONG KONG WHARF HOLDINGS LIMITED WHICH ALREADY OWNED THE OMNI HOTELS CHAIN IN THE U. S. HAS GROWN THE PAST TWO YEARS THROUGH PURCHASES OF POSH HOTELS IN BOSTON HOUSTON DALLAS NEW YORK AND CHICAGO OVERSEAS CHINESE ARE EXPECTED TO CONTINUE SHOPPING FOR AT LEAST ANOTHER YEAR OR MORE BUT NOBODY EXPECTS THE CHINESE TO GET CAUGHT UP IN BIDDING FEVER AND OVERPAY WHILE THE U. S. HOTEL BUSINESS REMAINS WEAK THE FUNDAMENTALS ARE LOOKING UP FEWER THAN TWO HUNDRED NEW HOTELS STARTED CONSTRUCTION LAST YEAR COMPARED WITH ONE THOUSAND SIX HUNDRED IN NINETEEN EIGHTY SIX MANAGEMENT CONTRACTS HAVE BECOME MORE ADVANTAGEOUS TO HOTEL OWNERS ROOM RATES AND OCCUPANCY LEVELS ARE CREEPING BACK UP AND BJORN HANSON HEAD OF THE HOSPITALITY PRACTICE AT COOPERS AND LYBRAND PREDICTS THAT THE NEXT COUPLE OF YEARS WILL BE VERY GOOD FOR THE INDUSTRY BUT FOR NOW PURCHASE PRICES REMAIN LOW AND PROFITS ARE OFTEN ILLUSORY JAMES CHOI VICE CHAIRMAN OF RENAISSANCE CONCEDES THAT THE COMPANY HASN'T YET PRODUCED PROFITS FOR NEW WORLD WHICH MADE THE ACQUISITION FOUR YEARS AGO QUOTE BUT THE PAIN HAS BEEN INCURRED QUOTE HE SAYS THERE WILL BE A TURNAROUND WE HAVE BEEN CONTAINING OUR LOSSES LIKEWISE WHARF ISN'T FINDING OMNI A HUGE MONEY SPINNER WHILE THE CHINESE GAIN KUDOS FOR SNIFFING OUT GOOD VALUES AND APPLYING KEEN FINANCIAL CONTROL OVER THEIR INVESTMENTS SOME OBSERVERS QUESTION THEIR EXPERIENCE IN THE U. S. AND IN THE LODGING INDUSTRY I'M SURE THEY WILL BUY AT THE RIGHT PRICE SAYS MR. TAKENAKA THE LOS ANGELES INVESTMENT BANKER BUT WHETHER THEY BUY THE RIGHT PROPERTY IS ANOTHER QUESTION AND WHAT HAPPENS AFTER THE PURCHASE SUCH CONCERNS ARE BEING ADDRESSED THOUGH A FEW MONTHS AGO THE TAIWANESE AMERICAN HOTEL MOTEL CHAMBER OF COMMERCE WAS ESTABLISHED TO HELP TAIWANESE NEW TO THE MARKET LAST APRIL SOME FORMER HILTON INTERNATIONAL EXECUTIVES FORMED A TAIPEI BASED HOTEL MANAGEMENT COMPANY TO WORK WITH ETHNIC CHINESE BUYING HOTELS AND MANY ASIAN INVESTORS SIMPLY BUY LOCAL TALENT AND FORM THEIR OWN MANAGEMENT COMPANIES MR. CHANG SAYS QUOTE I'M THE ONLY ORIENTAL ON THE EXECUTIVE COMMITTEE QUOTE OF HIS ORIENT HOTELS GROUP WHICH EXPECTS TO TURN A PROFIT THIS YEAR HIS GROUP IS CONTINUING TO SHOP FOR MORE PROPERTIES MR. CHANG SAYS HE TELLS BROKERS I DON'T WANT TO BUY ANY MORE HOTELS BUT I DON'T MIND STEALING SOME XEROX CORPORATION POSTED A FOURTH QUARTER LOSS OF FIVE HUNDRED SEVENTY SEVEN MILLION DOLLARS AFTER TAKING A BIG RESTRUCTURING CHARGE BUT OPERATING EARNINGS ROSE MILDLY DESPITE A SLIGHT DECLINE IN REVENUE XEROX HAD RECENTLY ANNOUNCED IT WOULD TAKE AN AFTER TAX CHARGE OF SEVEN HUNDRED MILLION DOLLARS TO CUT TEN THOUSAND JOBS AND CLOSE SOME SITES YESTERDAY THE COMPANY SAID THE RESTRUCTURING WOULD RESULT IN PRETAX SAVINGS OF THREE HUNDRED FIFTY MILLION DOLLARS THIS YEAR AND SEVEN HUNDRED MILLION DOLLARS IN NINETEEN NINETY FIVE IN THE FOURTH QUARTER XEROX'S NET LOSS OF FIVE HUNDRED SEVENTY SEVEN MILLION DOLLARS OR FIVE DOLLARS AND SIXTY THREE CENTS A SHARE COMPARED WITH A WIDER LOSS OF SEVEN HUNDRED THIRTY SIX MILLION DOLLARS OR SEVEN DOLLARS AND EIGHTY CENTS A SHARE A YEAR EARLIER YEAR AGO RESULTS REFLECTED A NET LOSS OF SEVEN HUNDRED FIFTY TWO MILLION DOLLARS ON INSURANCE OPERATIONS INCLUDING AFTER TAX CHARGES OF SIX HUNDRED EIGHTY EIGHT MILLION DOLLARS TO RESTRUCTURE AND EXIT MOST OF THE INSURANCE BUSINESS REVENUE IN THE MOST RECENT QUARTER FELL ONE POINT ONE PERCENT TO FOUR POINT ONE EIGHT BILLION DOLLARS FROM FOUR POINT TWO THREE BILLION DOLLARS WHILE OPERATING PROFIT BEFORE EXTRAORDINARY ITEMS ROSE ALMOST NINE POINT THREE PERCENT TO TWO HUNDRED THIRTY SIX MILLION DOLLARS FROM TWO HUNDRED SIXTEEN MILLION DOLLARS XEROX SAID FOURTH QUARTER REVENUE ROSE FIVE PERCENT EXCLUDING THE EFFECTS OF FOREIGN CURRENCY TRANSLATION WALL STREET APPEARED TO TAKE KINDLY TO XEROX'S PROFIT OUTLOOK AS XEROX SHARES ROSE ALMOST SIX PERCENT TO CLOSE AT NINETY EIGHT POINT ONE TWO FIVE DOLLARS UP FIVE DOLLARS AND FIFTY CENTS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TRADING VOLUME WAS HEAVY AT ALMOST ONE POINT THREE MILLION SHARES THAT FAVORABLE RESPONSE IS IN PART BECAUSE OF THE COMPANY'S AGGRESSIVE PLANS TO CONTINUE CUTTING THE WORK FORCE AND EXPENSES EVEN AS ITS OPERATING RESULTS POST RESPECTABLE GROWTH THE COMPANY SAID IT REDUCED THE WORLD WIDE WORK FORCE IN ITS MAJOR BUSINESS LINES BY TWO THOUSAND THREE HUNDRED IN NINETEEN NINETY THREE INCLUDING FIVE HUNDRED IN THE FOURTH QUARTER WALL STREET ALSO APPARENTLY APPLAUDS XEROX'S CONTINUING MOVES TO GET OUT OF THE FINANCIAL SERVICES BUSINESS INTO WHICH THE COMPANY HAD STAGED A COSTLY DIVERSIFICATION THROUGH MUCH OF THE PREVIOUS DECADE IRA ROUSSO MAKES HIS LIVING RENTING OUT STIFFS FOR SIXTY FIVE DOLLARS HIS SCHOEPFER STUDIOS IN MIDTOWN MANHATTAN WILL RENT YOU A STUFFED PORCUPINE FOR THREE DAYS A MOUNTED POLAR BEAR WITH A HOT TEMPERED EXPRESSION GOES FOR FOUR HUNDRED DOLLARS AND A BROWN BEAR FOR THREE HUNDRED SEVENTY FIVE DOLLARS MR. ROUSSO HAS MORE THAN ONE THOUSAND FIVE HUNDRED ANIMALS TO RENT HIS MAIN CUSTOMERS ARE PHOTOGRAPHERS ARTISTS AND RETAILERS BUT HIS SHOP IS OPEN TO ANY QUOTE PARTY PLANNER QUOTE WHO CAN AFFORD THE DEPOSIT WHICH GOES AS HIGH AS TEN THOUSAND DOLLARS FOR A LEAPING LION HE'S ALSO WILLING TO SELL SOME MORE COMMON SPECIES STUFFED CHICKENS FOR EXAMPLE MR. ROUSSO BOUGHT THE TAXIDERMIC ZOO A YEAR AGO FROM A COLLECTOR WHOSE GRANDFATHER STARTED IT IN NINETEEN OH SEVEN HE HAD LOST HIS JOB AS A PURCHASING AGENT AND WANTED TO RUN HIS OWN BUSINESS MR. ROUSSO CLAIMS IT'S THE VARIETY OF STIFFS FROM FEROCIOUS TIGERS AND ALLIGATORS TO MOUNTED FISH AND CUTE KANGAROOS THAT MAKES HIS COLLECTION STAND OUT IF YOU WANT A BEAR FINE YOU CAN FIND A BEAR BUT AN ELEPHANT'S HEAD BIRDS OF PREY A LION OR SIBERIAN TIGER YOU WON'T FIND HE SAYS IF SOMEONE COMES IN HERE AND ASKS FOR A ROSE BREASTED GROSBEAK THEY EITHER GET IT FROM ME OR DON'T GET IT ANYWHERE TO DATE HE SAYS THE BUSINESS HAS HAD ABOUT TWO HUNDRED THOUSAND DOLLARS IN SALES MR. ROUSSO IS ESPECIALLY PROUD WHEN ONE OF HIS MENAGERIE MAKES THE BIG TIME THE SHARP EYED CAN SEE ONE OF MR. ROUSSO'S STUFFED BEAVERS IN THE MOVIE NAKED GUN TWO AND ONE HALF VANITY FAIR HE SAYS RENTED AN ARRAY OF CATS BIRDS AND OTHER ANIMALS FOR A PHOTO SHOOT WITH CINDY CRAWFORD AND HE ADDS THE SOAP OPERA ALL MY CHILDREN USES HIS ANIMALS IN HUNTING LODGE SCENES WHAT EXACTLY MAKES A GOOD STUFFED ANIMAL VERY CLEAN MOUNTED EXAMPLES IS WHAT HOLMES EASLEY SET DECORATOR ON PROCTER AND GAMBLE PRODUCTIONS' AS THE WORLD TURNS LOOKS FOR MR. EASLEY WHO GETS PROPS FROM OTHER VENDORS SAYS HE TRIES TO AVOID QUOTE DUSTY RATTY OLD ANIMALS THAT LOOK VERY MOTH EATEN QUOTE ALTHOUGH MR. ROUSSO SAYS HE HAS A STEADY BUSINESS SOME DEMANDS ARE SEASONAL TURKEYS ARE BIG IN NOVEMBER FOR EXAMPLE AND CROWS IN OCTOBER ONE OF HIS HOTTEST ITEMS AROUND HALLOWEEN IS THE NEW YORK CITY RAT HE HAS THREE THAT RENT FOR SIXTY DOLLARS EACH HE SAYS HE WOULD LIKE TO ADD TO HIS RAT COLLECTION BUT CAN'T FIND ENOUGH OF THEM DEAD THAT IS I'VE SEEN THEM IN THE SUBWAYS HE SAYS BUT I'M NOT GOING AROUND KILLING RATS NO ONE COULD MISTAKE PLANNED PARENTHOOD'S STATUS AS THE NATION'S ABORTION CENTRAL BUT NEVERTHELESS A CLASSIFIED AD THAT THE GROUP PLACED IN THE ARIZONA REPUBLIC RECENTLY CAUGHT OUR EYE THE LISTING FOR A QUOTE FAMILY PLANNING ASSISTANT QUOTE INCLUDED AMONG OTHER QUALIFICATIONS QUOTE MUST BE PRO CHOICE QUOTE THESE DAYS THE THREAT OF ANTIDISCRIMINATION LITIGATION MEANS YOU CAN'T TRY TO SPECIFY SPIRITUALITY OR EXCLUDE SEXUAL PRACTICES IN ADVERTISING FOR A RENTER BUT WHEN IT COMES TO ADVISING PROSPECTIVE MOTHERS AT PLANNED PARENTHOOD ONLY THE POLITICALLY CORRECT NEED APPLY THE SENATE'S FORTY FOUR REPUBLICANS BLASTED A PART OF A NEW WORLD TRADING AGREEMENT THAT ALLOWS CERTAIN GOVERNMENT SUBSIDIES GIVING THE CLINTON ADMINISTRATION ITS FIRST BIG POLITICAL TEST IN ITS EFFORT TO PUSH THE PACT THROUGH CONGRESS THE SENATE REPUBLICAN DISAPPROVAL ISN'T LIKELY TO MEAN CONGRESSIONAL DEFEAT FOR THE PACT WHICH WAS NEGOTIATED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND IS AIMED AT LIBERALIZING WORLD TRADE BUT THE OPPOSITION DOES CREATE A POTHOLE ON WHAT WAS SUPPOSED TO BE A SMOOTH RIDE ADMINISTRATION OFFICIALS INSIST THAT CONCERNS CAN BE DEALT WITH IN IMPLEMENTING LEGISLATION THAT DETAILS HOW THE TRADE PACT WILL TAKE EFFECT THE REPUBLICANS ARE BASICALLY OPPOSED TO TERMS THAT ALLOW SUBSIDIES FOR RESEARCH AND DEVELOPMENT REGIONAL DEVELOPMENT AND ENVIRONMENTAL COMPLIANCE THE SENATORS LED BY MISSOURI SENATOR JOHN DANFORTH COMPLAINED THAT THE SUBSIDIES REPRESENT QUOTE A MAJOR SHIFT IN U. S. TRADE POLICY FROM ONE PROMOTING FREE MARKET COMPETITION TO ONE PROMOTING GOVERNMENT SUBSIDIES AND INDUSTRIAL POLICY QUOTE THE ADMINISTRATION REACTED SOMEWHAT UNUSUALLY TO THE REPUBLICAN COMPLAINTS A SENIOR U. S. TRADE OFFICIAL WHO BRIEFED REPORTERS ON THE CONDITION OF ANONYMITY MOCKINGLY READ PARTS OF THE LAWMAKERS' PROTEST AND NOTED THAT MR. DANFORTH SHOULD BE ASKED MORE PENETRATING QUESTIONS ABOUT WHY HE IS RAISING THIS TO THIS LEVEL OF PUBLIC CONFRONTATION THE OFFICIAL WOULDN'T ELABORATE BUT WENT ON TO SUGGEST THE SENATORS WERE TRYING TO TURN RATIFICATION OF THE PACT INTO A PARTISAN BATTLE THE SUBSIDY ISSUE ILLUSTRATES A CHANGE IN TRADE POSITION BETWEEN THE CLINTON ADMINISTRATION AND ITS PREDECESSOR UNDER PRESIDENT BUSH THE U. S. PRESSED TO LIMIT GOVERNMENT SUBSIDIES OF RESEARCH AND DEVELOPMENT IN THE WORLD TRADE NEGOTIATIONS IN GENEVA IN DECEMBER THE CLINTON ADMINISTRATION OVERTURNED THAT POSITION AND PERSUADED OTHER COUNTRIES TO ACCEPT PROVISIONS THAT ALLOW GOVERNMENTS TO COVER AS MUCH AS SEVENTY FIVE PERCENT OF RESEARCH COSTS AND FIFTY PERCENT OF DEVELOPMENT COSTS THE CLINTON ADMINISTRATION CONSIDERED SUCH A POSITION IMPORTANT BECAUSE IT HAS ADOPTED A POLICY OF PROMOTING COMMERCIAL RESEARCH WITH GOVERNMENT FUNDS UNLIKE THE BUSH ADMINISTRATION WHICH BRANDED THIS AS IMPROPER INDUSTRIAL POLICY THE CLINTON ADMINISTRATION WILL SUPPORT RESEARCH AND DEVELOPMENT THAT LEADS TO A PROTOTYPE FOR EXAMPLE IT PLANS TO FUND FIFTY PERCENT OF THE COST OF BUILDING A CAR THAT IS THREE TIMES AS EFFICIENT AS CARS TODAY IN CONTRAST THE BUSH ADMINISTRATION LIMITED ITS SUPPORT TO LABORATORY RESEARCH THE SENATORS SAID THE SUBSIDIES WOULD UNDERMINE U. S. INDUSTRIES' ABILITY TO CHARGE FOREIGN COMPANIES WITH RECEIVING UNFAIR SUBSIDIES AND DUMPING GOODS IN THE U. S. AT UNFAIRLY LOW PRICES THE TARGET OF MUCH CRITICISM OVER GOVERNMENT SUBSIDIES IS AIRBUS INDUSTRIE A EUROPEAN AIRCRAFT CONSORTIUM THAT HAS EMERGED AS A MAJOR RIVAL TO THE U. S. AIRCRAFT MAKERS SUCH AS BOEING COMPANY AND MCDONNELL DOUGLAS CORPORATION MR. DANFORTH WHOSE STATE INCLUDES MCDONNELL DOUGLAS'S HEADQUARTERS SAID HE WON'T SUPPORT THE TRADE PACT IF THE SUBSIDY ARRANGEMENT ISN'T CHANGED I'D RATHER KILL THE G. A. T. T. AGREEMENT THAN DO THIS HE SAID IN A BRIEFING TO REPORTERS WHILE ALL OF THE REPUBLICAN SENATORS AREN'T LIKELY TO OPPOSE THE PACT BECAUSE OF THIS ISSUE MR. DANFORTH'S POSITION COULD BE TROUBLESOME BECAUSE OF HIS POSITION ON THE SENATE FINANCE COMMITTEE WHICH WILL BE A MAIN COMMITTEE CONSIDERING THE AGREEMENT MOREOVER THE REPUBLICAN POSITION IS IMPORTANT BECAUSE THE G. O. P. HAS TRADITIONALLY PROVIDED CRUCIAL VOTES FOR TRADE LIBERALIZATION MEASURES SUCH AS THE NORTH AMERICAN FREE TRADE AGREEMENT AS THE FIRST HALF OF SUPER BOWL XXVIII CONCLUDED WITH THE BUFFALO BILLS LEADING THE DALLAS COWBOYS THIRTEEN TO SIX RICK BOYKO SENIOR VICE PRESIDENT AND EXECUTIVE CREATIVE DIRECTOR AT W. P. P. GROUP'S OGILVY AND MATHER SNICKERED AND SAID QUOTE THIS IS ONE OF THE FIRST SUPER BOWLS WHERE THE GAME IS BEATING THE COMMERCIALS QUOTE MR. BOYKO ENSCONCED IN A PENTHOUSE AT MANHATTAN'S ROYALTON HOTEL WITH OTHER ADVERTISING EXECUTIVES WASN'T ALONE IN THAT CANDID ASSESSMENT THE CONSENSUS OF THE EXECUTIVES DURING THE THREE AND ONE QUARTER HOUR GAME WHICH ENDED WITH DALLAS SENDING BUFFALO TO ITS FOURTH STRAIGHT SUPER BOWL DEFEAT WAS THAT THE COMMERCIAL BREAKS PRODUCED MORE LOSERS THAN WINNERS THE SUPER BOWL PARTY AT THE ROYALTON HOSTED BY THE FALLON MCELLIGOTT AGENCY WAS HARDLY SCIENTIFIC BUT ADVERTISERS ALSO FARED POORLY IN A MORE SCIENTIFIC STUDY CREATIVE MARKETING CONSULTANTS A MARKET RESEARCH FIRM IN SOUTHFIELD MICHIGAN TELEPHONED THREE HUNDRED SEVENTY THREE SUPER BOWL VIEWERS NATIONWIDE FOLLOWING THE GAME TO GAUGE HOW MEMORABLE EACH AD WAS WITH ONE EXCEPTION A VAST MAJORITY OF THOSE RESPONDING TO THE QUESTIONS COULDN'T RECALL THE PRODUCTS BEING ADVERTISED EVEN THE EXCEPTION ANHEUSER BUSCH'S BUD BOWL SIX WON BY BUD LIGHT INCIDENTALLY DIDN'T FARE ALL THAT WELL ONLY FIFTY FOUR PERCENT OF THE SURVEYED VIEWERS RECALLED THE ADS THAT'S A DISMAL SHOWING CONSIDERING THE BUD BOWL HAS BEEN AROUND FOR SO LONG AND THE NAME OF THE PRODUCT IS SEEN THROUGHOUT THE COMMERCIALS SAYS ROD SMITH A PARTNER WITH CREATIVE MARKETING THE BUD BOWL VARIED ITS FORMAT ONLY SLIGHTLY THIS YEAR EAGLE EYED VIEWERS MAY HAVE NOTICED SOME CROSS PROMOTION FOR ANHEUSER BUSCH WHEN A REPLAY WAS SEEN DURING THE BUD BOWL IT WAS SPONSORED BY EAGLE SNACKS A UNIT OF ANHEUSER BUSCH ANOTHER ANHEUSER BUSCH PRODUCT BUD ICE DRAFT WHICH HAD FOUR FIFTEEN SECOND SPOTS IN THE GAME PERFORMED EVEN WORSE THAN THE BUD BOWL ONLY FIVE PERCENT OF THOSE SURVEYED RECALLED THE PRODUCT MCDONALD'S REGISTERED SIXTEEN PERCENT NIKE ONLY TWENTY THREE PERCENT EVEN WITH THE HOOPLA OF ITS ADS FEATURING ACTOR STEVE MARTIN THAT AREN'T SCHEDULED TO BE BROADCAST AGAIN ALAMO RENT A CAR WITH A COUPLE THAT AGES AND RAISES A FAMILY WHILE ON THE ROAD ONLY FOUR PERCENT SUCH FINDINGS CAN'T BE GOOD NEWS TO ADVERTISERS WHO EACH YEAR SPEND MILLIONS TO PRODUCE COMMERCIALS THEY HOPE WILL DAZZLE THE VIEWERS IN PART BY BREAKING THROUGH THE CLUTTER DURING THE SUPER BOWL BROADCAST ON GENERAL ELECTRIC'S N. B. C. THERE WERE FIFTY SIX THIRTY SECOND SPOTS EACH SELLING FOR A RECORD NINE HUNDRED THOUSAND DOLLARS ACCORDING TO A. C. NIELSEN FIGURES SUPPLIED BY N. B. C. THE SUPER BOWL WAS WATCHED BY FORTY FIVE POINT FOUR PERCENT OF U. S. HOMES WITH T. V. SETS OR ABOUT ONE HUNDRED THIRTY FOUR POINT EIGHT MILLION VIEWERS THAT'S A SLIGHT INCREASE FROM LAST YEAR WHEN THE BIG GAME WAS WATCHED BY FORTY FIVE POINT ONE PERCENT OF U. S. HOMES WITH T. V. SETS PEPSICO'S PEPSI ADS RECEIVED A THIRTY FIVE PERCENT RECALL SCORE HIGHER THAN MOST ADVERTISERS BUT NOT VERY IMPRESSIVE GIVEN THE FIVE POINT FOUR MILLION DOLLARS IT SPENT ON COMMERCIALS FOR THE FLAGSHIP BRAND ALONE ONE PEPSI SPOT RECEIVED WARM LAUGHTER AND KUDOS FROM THE AD AGENCY EXECUTIVES EATING LASAGNA AND CAESAR SALAD AT THE ROYALTON THAT COMMERCIAL WAS THE WOODSTOCK REUNION MAYBE THE EXECUTIVES SAW A BIT OF THEMSELVES IN THE COMMERCIAL WHICH HAD FORMER HIPPIES TURNED BUSINESS EXECUTIVES RETURNING IN B. M. W.S TO THE SITE OF THE ROCK MUSIC FESTIVAL WAVY LAY'S AD FROM PEPSI'S FRITO LAY DIVISION WAS CONSIDERED A WINNER BY MR. SMITH IN HIS COMPANY'S SURVEY THIRTY EIGHT PERCENT RECALLED THE PRODUCT AND THE SPOT WHICH FEATURED A WIDELY PUBLICIZED APPEARANCE BY FORMER VICE PRESIDENT DAN QUAYLE MR. SMITH SAYS THAT SCORE WAS UNUSUALLY STRONG IN LIGHT OF THE FACT THAT WAVY LAY'S IS A NEW RELATIVELY UNKNOWN PRODUCT AND HAD ONLY ONE COMMERCIAL IN THE SUPER BOWL SEVERAL STYLISH AND SEXY BLACK AND WHITE ADS FROM NORWEGIAN CRUISE LINES DREW ENTHUSIASTIC RESPONSES FROM THE ROYALTON GANG BUT WITH A PUNY THREE PERCENT RECALL FROM CREATIVE MARKETING THEY BARELY REGISTERED WITH OTHER VIEWERS DESPITE A TEASER CAMPAIGN EARLIER THIS MONTH FROM CHRYSLER FOR ITS NEON MODELS ONLY TEN PERCENT OF THOSE SURVEYED RECALLED THE NEON COMMERCIALS DURING THE SUPER BOWL AND THEY DREW A HO HUM REACTION FROM THOSE INVITED BY FALLON EACH AD ENDED WITH THE WORD HI ABOVE THE IMPISH LOOKING NEON MAYBE CHRYSLER SHOULD LEARN THAT CARS THAT TALK MAY MAKE FOR A TELEVISION SERIES MY MOTHER THE CAR OR KNIGHT RIDER BUT NEVER A COMMERCIAL OR AT LEAST HAVE THE CAR MAKE PITHY COMMENTS A CHRYSLER SPOKESMAN SAYS THE COMPANY IS PLEASED WITH THE ADS HOWEVER IT CONDUCTED A THREE CITY EXPERIMENT IN WHICH A TOTAL OF SIX HUNDRED EIGHTY NINE VIEWERS COULD ASK FOR MORE INFORMATION ABOUT THE NEON THE AUTO MAKER REPORTS THAT FIFTY NINE PERCENT WANTED ADDITIONAL INFORMATION SENT IT SEEMED AS IF SOME SUPER BOWL COMMERCIALS SHOULD BE AS RETIRED AS JOE NAMATH THE FORMER NEW YORK JETS QUARTERBACK WHO FLIPPED THE GAME OPENING TOSS SUNDAY FOR INSTANCE THE MCDONALD'S SPOT OF A SHOOTING CONTEST BETWEEN LARRY BIRD AND MICHAEL JORDAN WAS CLEVER THE FIRST YEAR AMUSING THE SECOND BUT BORDERING ON ANNOYING AND TIRED ON SUNDAY THE BUD BOWL SHOULDN'T HAVE GOTTEN TO BUD BOWL TWO AND PLEASE SEVEN UP ISUZU LIPTON AND GOODYEAR IF YOU'RE GOING TO ADVERTISE ON THE SUPER BOWL COME WITH SOMETHING SPECIAL FINALLY A PARTING COMMENT THAT SHOULD WORRY SOME ON MADISON AVENUE MR. SMITH OF CREATIVE MARKETING SAYS THE BEST TIME TO SURVEY VIEWERS IS IMMEDIATELY FOLLOWING THE GAME WHY THERE IS TREMENDOUS DROPOFF IN VIEWER RECALL OF COMMERCIALS EVEN AFTER ONE DAY NINE HUNDRED THOUSAND DOLLARS FOR THAT INTERPUBLIC GROUP OF COMPANIES THE NEW YORK HOLDING COMPANY DISCUSSED A POSSIBLE ACQUISITION OF AMMIRATI AND PURIS NEW YORK BUT THE TALKS WEREN'T SERIOUS BOTH PARTIES SAID A FRONT PAGE STORY IN YESTERDAY'S ADVERTISING AGE REPORTED PRELIMINARY DISCUSSIONS RELATED TO A POSSIBLE PURCHASE OF CLOSELY HELD AMMIRATI AND PURIS BY INTERPUBLIC GROUP THE MAGAZINE SAID THAT UNDER SUCH A SCENARIO THE AMMIRATI AGENCY WOULD CONTINUE AS A SEPARATE UNIT QUOTE MOST LIKELY QUOTE REPORTING THROUGH INTERPUBLIC'S LOWE GROUP INTERPUBLIC'S CHAIRMAN PHILIP GEIER SAID EXECUTIVES AT THE TWO COMPANIES HAVE DISCUSSED THE POSSIBILITY CASUALLY BUT SAID NO DEAL IS IN THE WORKS PEOPLE HAVE LUNCH ALL THE TIME HE SAID THERE'S NOTHING GOING ON MARTIN PURIS CHIEF EXECUTIVE OFFICER AND PRESIDENT OF AMMIRATI SAID IN A PREPARED STATEMENT WHILE WE ARE ALWAYS INTERESTED IN LISTENING TO PROPOSALS THERE IS NO REASON FOR US TO WANT TO TINKER WITH THE AGENCY'S HIGHLY EFFECTIVE FORMULA FOR SUCCESS INDUSTRY EXECUTIVES WERE SURPRISED TO LEARN THAT THE AMMIRATI AGENCY WOULD ENTERTAIN THE IDEA OF A PARENT COMPANY AMMIRATI BOUGHT ITSELF BACK FROM OMNICOM GROUP IN NINETEEN NINETY AFTER OMNICOM'S NINETEEN EIGHTY NINE PURCHASE OF AMMIRATI'S THEN PARENT BRITISH BASED BOASE MASSIMI POLLITT REVIEWS F. M. R. CORPORATION'S FIDELITY INVESTMENTS SAID IT IS HOLDING A CONTRACTUALLY MANDATED REVIEW OF ITS FIFTEEN MILLION DOLLARS TO TWENTY MILLION DOLLAR CORPORATE AD ACCOUNT A SPOKESWOMAN DECLINED TO ELABORATE INTERPUBLIC GROUP'S MCCANN ERICKSON WAS THE LAST AGENCY ON THE ACCOUNT WHICH HAS BEEN INACTIVE RECENTLY STAPLES INCORPORATED THE FRAMINGHAM MASSACHUSETTS OFFICE SUPPLY CHAIN SAID IT IS SEEKING AN AGENCY TO HANDLE CREATIVE DUTIES ON A BROADCAST AND PRINT ASSIGNMENT WE DON'T HAVE AN AGENCY OF RECORD AND WE DON'T WANT ONE SAID PHYLLIS WASSERMAN VICE PRESIDENT OF ADVERTISING STAPLES SPENDS FIFTEEN MILLION DOLLARS TO TWENTY MILLION DOLLARS ANNUALLY ACCORDING TO ADWEEK MAGAZINE SENATOR BOB PACKWOOD VISITED HIS HOME STATE OF OREGON RECENTLY AND RETURNED TO WASHINGTON D. C. JUBILANT THAT HIS TRIP DID NOT GENERATE AS MUCH FUROR AS IT HAS EVERY OTHER TIME FOR THE PAST YEAR THE REASON EVERYONE WAS FIXATED ON TONYA HARDING THE FIGURE SKATING STAR WHO IS THE LATEST OREGON EMBARRASSMENT A NEW JOKE MAKING THE ROUNDS ASKS QUOTE WHAT DO BOB PACKWOOD AND TONYA HARDING HAVE IN COMMON QUOTE THE REPLY THEY'RE BOTH ON THIN ICE AND THEY BOTH HIT ON WOMEN THE STATE'S MAIN DAILY NEWSPAPER THE OREGONIAN IN AN EDITORIAL TITLED OREGON THINGS LOOK WEIRDER HERE SPECULATED THAT THE NATIONAL ENQUIRER MIGHT OPEN A PORTLAND BUREAU AND THAT MICHAEL JACKSON AND LORENA BOBBITT MIGHT AS WELL MOVE HERE TOO THE PACKWOOD AND HARDING SCANDALS THE WORLD SEES UNFORTUNATELY ARE JUST FROSTING ON THE CAKE OREGON HAS EMBARRASSMENTS THE OUTSIDE WORLD HAS BARELY HEARD OF THE REAL PROBLEM IS THAT OREGON HAS FALLEN SO FAR SO FAST FROM PARADISE TO JUST ABOUT LIKE ANYWHERE ELSE IN THE SPAN OF A DECADE OR SO IT WAS LITTLE MORE THAN THAT WHEN PORTLAND WAS RANKED AS THE MOST POLITE CITY IN THE COUNTRY TODAY HANDGUN REGISTRATIONS ARE SPIRALING A DECADE AND A HALF AGO PORTLAND WAS RANKED AS AMERICA'S MOST LIVABLE CITY TODAY NATIONAL MAGAZINES CALL IT TAX HELL OREGONIANS USED TO LOOK IN HORROR ON SENSELESS CRIMES LIKE DRIVE BY SHOOTINGS AND FREEWAY MURDERS THAT HAPPENED TO THE SOUTH OF US THOSE THINGS SIMPLY DID NOT TAKE PLACE HERE THIS WAS A NICE SAFE QUIET PLACE AND THAT'S THE WAY WE LIKED IT EVER SINCE THE FIRST DRIVE BY SHOOTING IN NINETEEN EIGHTY EIGHT HOWEVER IT HAS BEEN A DIFFERENT STORY OREGON HAS BEEN BESET WITH A SERIES OF HORRIBLE SHOCKING CRIMES FIRST THERE WAS THE ETHIOPIAN WHO WAS BEATEN TO DEATH WITH BASEBALL BATS BY WHITE SUPREMACISTS AND JUST IN THE PAST YEAR THERE WAS THE WHITE COUPLE THAT WAS SWARMED BY A MOB OF UP TO ONE HUNDRED FIFTY BLACK TEENAGERS WITH THREE OF THEM TRIED FOR BEATING AND KICKING THE MALE INTO BRAIN DAMAGE NOW OREGON IS SETTING NEW RECORDS THERE IS THE ONE HUNDRED THREE YEAR OLD MAN WHO WAS BLUDGEONED TO DEATH WITH FIVE WHITE TEENAGE BOYS HELD AS SUSPECTS HE WAS THE OLDEST PERSON EVER BLUDGEONED TO DEATH HERE AND ONE PORTLAND SUBURB RECENTLY SET A RECORD WITH ITS FIRST TRIPLE MURDER HIGH CURVING FENCES ARE BEING INSTALLED ON MAJOR FREEWAY OVERPASSES BECAUSE RECENTLY SOME TEENAGERS HURLED A CHUNK OF CONCRETE THROUGH THE WINDSHIELD OF A CAR BELOW SMASHING A WOMAN'S FACE AND LET'S NOT FORGET ELIZABETH DIANE DOWNS THE WOMAN WHO SHOT HER OWN CHILDREN OR KATHERINE ANN POWER THE FUGITIVE FROM THE NINETEEN SEVENTY ROBBERY SLASH MURDER WHO HOLED UP IN OREGON FOR TWENTY YEARS OREGON ALSO GAINED NOTORIETY AS THE HOME OF BALLOT MEASURE NINE WHICH SUPPORTERS SAID AIMED TO PREVENT HOMOSEXUALS FROM GAINING SPECIAL RIGHTS AND OPPONENTS MAINTAINED WAS ACTUALLY AIMED AT STRIPPING THEM OF CIVIL RIGHTS PROTECTION TONYA HARDING IS NOT OUR FIRST SPORTS SCANDAL IT WAS BUT A YEAR AGO OR SO THAT SOME OF OUR PORTLAND TRAILBLAZERS GOT INTO HOT WATER FOR FORNICATING WITH RUNAWAY TEENAGE GIRLS THEY HAD PICKED UP IN A SALT LAKE CITY MALL IT WOULD BE EASY TO BLAME ALL THE CRAZINESS ON THE INFLUX OF CALIFORNIANS AFTER ALL ABOUT A THIRD OF THE STATE'S POPULATION WASN'T HERE A DECADE AGO BUT OUR MOST NOTORIOUS RESIDENTS SENATOR PACKWOOD AND MS. HARDING ARE LOCALS IN ADDITION TO THE BAD PRESS FROM OUR FLOCK OF UNSAVORY PEOPLE OREGONIANS FACE A GROWING HOSTILITY BETWEEN CITIZENS AND GOVERNMENT SO HIGH IS THE HEAT THAT SOME PUBLIC FIGURES ARE GETTING OUT OF THE KITCHEN FOR EXAMPLE REPRESENTATIVE MIKE KOPETSKI A RELATIVELY NEW CONGRESSMAN WITH A PROMISING CAREER DECIDED NOT TO RUN FOR RE ELECTION IN PART BECAUSE OF THE PUBLIC CLIMATE HE HAD BEEN CONVICTED OF DRUNKEN DRIVING AND MAY NOT HAVE WANTED TO WALK IN FIRE AS HAD MR. PACKWOOD THERE IS LITTLE QUESTION THAT CONDITIONS HAVE DETERIORATED BUT IT IS ALSO TRUE THAT FOR MANY YEARS PROBLEMS WERE UNDERREPORTED WHEN MEDIA PEOPLE MOVE HERE MANY WANT TO STAY SO BADLY THAT THEY PULL PUNCHES IN ORDER TO FIT INTO THE COMMUNITY AFTER ALL IT TOOK THE WASHINGTON POST TO BREAK THE STORY ABOUT SENATOR PACKWOOD'S SEXUAL ESCAPADES TO REGAIN THE ADVERSARIAL RELATIONSHIP WITH GOVERNMENT AT LEAST ONE MAJOR NEWSPAPER IS REPORTEDLY HIRING MOSTLY OUTSIDERS PEOPLE WHO HAVE NOT YET BEEN CO OPTED THE CHASM BETWEEN THE GOVERNED AND GOVERNMENT IS EVIDENT IN THE CONFLICT OVER TAXES OREGONIANS VOTED IN A PROPERTY TAX LIMITATION MEASURE BALLOT MEASURE FIVE RATHER THAN SLASH EXPENDITURES GOVERNOR BARBARA ROBERTS RESPONDED BY ASKING VOTERS TO APPROVE A SALES TAX AFTER ONE HAD BEEN DEFEATED HERE EIGHT TIMES IN THE PAST NOT ONLY DID IT NOT PASS BUT IT SO TURNED VOTERS AGAINST HER THAT ON FRIDAY SHE ANNOUNCED THAT SHE WON'T BE RUNNING FOR RE ELECTION ONE OF THE LATEST PACKWOOD JOKES HAS TAKEN ON A NEW TWIST HAVE YOU HEARD THAT PACKWOOD IS RESIGNING FROM THE SENATE HE'S RUNNING FOR GOVERNOR INSTEAD BECAUSE ROBERTS'S SEAT IS UP FOR GRABS QUOTE OREGON STILL HAS A RELATIVELY HOT ECONOMY AND DOUBLE THE NATIONAL POPULATION GROWTH RATE IT BOASTS A RUGGED COASTLINE LUSH FOREST AND FARMLAND TOWERING MOUNTAINS AND A MOIST MODERATE CLIMATE BUT THE CLOUDS OVERHEAD ARE NOT FROM THE WINTER RAINS THEY ARE FROM A SENSE OF PARADISE LOST MR. EISLER IS A FREE LANCE WRITER IN PORTLAND ARMCO INCORPORATED SAID IT PLANS TO SELL ITS OPERATING INSURANCE BUSINESSES TO CLOSELY HELD VIK BROTHERS INSURANCE INCORPORATED FOR ABOUT EIGHTY FIVE MILLION DOLLARS AND WILL TAKE A CHARGE TO REFLECT THE SALE ARMCO A DOMESTIC PRODUCER OF STAINLESS AND ELECTRICAL STEEL SAID IT WOULD TAKE A CHARGE AGAINST FOURTH QUARTER EARNINGS OF FORTY FIVE MILLION DOLLARS IN CONNECTION WITH THE PROPOSED SALE THE PITTSBURGH COMPANY POSTED A LOSS OF THREE HUNDRED SEVENTY SIX POINT SEVEN MILLION DOLLARS OR THREE DOLLARS AND SIXTY EIGHT CENTS A SHARE IN THE NINETEEN NINETY TWO FOURTH QUARTER VIK BASED IN RALEIGH N. C. IS A PROPERTY AND CASUALTY INSURANCE HOLDING COMPANY A FOOD AND DRUG ADMINISTRATION INVESTIGATION HAS FOUND IRREGULARITIES IN THE PRODUCTION OF COPLEY PHARMACEUTICAL INCORPORATED'S RECALLED ASTHMA DRUG ALBUTEROL THE F. D. A. IN AN INVESTIGATIVE REPORT RELEASED YESTERDAY UNDER THE FREEDOM OF INFORMATION ACT SAID IT FOUND SEVERAL LEAKS AND OTHER POTENTIAL SOURCES OF CONTAMINATION IN A WATER PURIFICATION SYSTEM USED TO MAKE ALBUTEROL AN INHALANT SOLUTION THE AGENCY ALSO SAID BACTERIAL COUNTS IN COPLEY'S INTERNAL MONITORING OF ALBUTEROL PRODUCTION WEREN'T ACCURATELY RECORDED THE REPORT WHICH HAD SEVERAL EXCISED PORTIONS SUGGESTED THAT COPLEY INSPECTORS SIGNED OFF ON INTERNAL WATER QUALITY DOCUMENTATION INVOLVED IN MAKING ALBUTEROL BEFORE FINAL BACTERIAL COUNTS WERE COMPLETED THE REPORT COULD ADD TO COPLEY'S TROUBLE OVER THE ALBUTEROL RECALL WHICH HAS PROMPTED LAWSUITS AND MEDICAL CONCERN ABOUT THE QUALITY OF GENERIC DRUG PRODUCTION COPLEY IS ONE OF THE LARGEST PRODUCERS OF GENERICS WHICH ARE LOWER COST VERSIONS OF DRUGS ORIGINALLY MARKETED AT HIGHER PRICES BY OTHER PHARMACEUTICAL FIRMS COPLEY PRESIDENT ANTHONY BONELLI THROUGH A SPOKESMAN SAID YESTERDAY QUOTE WE ARE PREPARING A COMMENT TO THE F. D. A. COPLEY CONTINUES TO RESPONSIBLY ADDRESS THIS MATTER AND ALL OF THESE ISSUES CAN AND WILL BE RESPONSIBLY AND ADEQUATELY RESOLVED THE F. D. A. REPORT CRITICIZES COPLEY ON A NUMBER OF FRONTS INCLUDING FAILING TO HAVE WRITTEN PROCEDURES FOR MICROBIOLOGICAL MONITORING AND THE SANITATION AND MAINTENANCE OF THE WATER PURIFICATION SYSTEM USED IN THE PRODUCTION OF ALBUTEROL THE REPORT ALSO CITED DEFICIENCIES IN COPLEY'S MANUFACTURING PROCESSES WATER PURIFICATION SYSTEM DRAIN LINES WERE FOUND EXTENDED INTO THE FLOOR DRAINS IT SAYS THE REPORT ADDS THAT SIX LEAKS WERE OBSERVED IN THE WATER PURIFICATION SYSTEM INCLUDING TWO SITUATED AFTER THE FINAL FILTER SUCH LEAKS REPRESENT POTENTIAL SOURCES OF BACTERIAL CONTAMINATION IN EARLY JANUARY COPLEY ANNOUNCED A NATIONWIDE RECALL OF ALBUTEROL IN ITS ZERO POINT FIVE PERCENT CONCENTRATION DUE TO WATERBORNE BACTERIAL CONTAMINATION SINCE THEN THE COMPANY HAS BEEN NAMED IN TWO LAWSUITS IN CHICAGO ALLEGING CHILDREN DEVELOPED SERIOUS ILLNESSES AFTER USING ALBUTEROL THE F. D. A. REPORT ALSO NOTES THAT SOME GAUGES WERE NOT CALIBRATED CORRECTLY AND THAT SOME MICROBIOLOGICAL MONITORING RESULTS WERE NOT ACCURATE IT ALSO SAYS THAT ON THREE OCCASION A NOTEBOOK IN THE WATER TESTING LABORATORY WAS SIGNED OFF BY THE ANALYST ONE DAY PRIOR TO WHEN THE EXCISED PLATE COUNT RESULTS WOULD HAVE BEEN RECORDED IN ANOTHER INSTANCE THE AGENCY'S REPORT SAYS A LINE OPERATOR RESPONSIBLE FOR CLEANING THE EXCISED LIQUID SYSTEM FAILED TO PROPERLY DRAIN THE LINES OF RINSED DEIONIZED WATER BETWEEN BATCHES DEVIATING FROM WRITTEN PROCEDURE SUSAN CRUZAN AN F. D. A. SPOKESWOMAN IN ROCKVILLE MARYLAND SAID SHE COULDN'T COMMENT ON THE DETAILS OF THE REPORT QUOTE AT THIS POINT IT'S UP TO THE FIRM TO LOOK AT THIS TO CORRECT ALL THESE THINGS OR TELL THE F. D. A. WHETHER OR NOT THEY SEE THEM AS PROBLEMS THAT NEED TO BE CORRECTED QUOTE SHE SAID THE INVESTIGATION WAS PERFORMED AT COPLEY'S CANTON MASSACHUSETTS FACILITY WHEN THE REVEREND ALBERT DIULIO ARRIVED AT MARQUETTE UNIVERSITY AS PRESIDENT IN NINETEEN NINETY HE FACED A DISTURBING PROSPECT MARQUETTE AND ITS ELEVEN THOUSAND STUDENTS MIGHT HAVE TO WALL THEMSELVES IN FOR THEIR OWN SAFETY GANGS DRUG DEALERS AND PROSTITUTES HAD MOVED INTO AVENUES WEST A ONE HUNDRED SQUARE BLOCK AREA NEAR DOWNTOWN THAT HAS BEEN HOME TO THE JESUIT UNIVERSITY FOR ONE HUNDRED THIRTEEN YEARS FEAR AND VIOLENCE MOVED IN WITH THEM QUOTE WE WERE HAVING DRIVE BY AND STAND BY SHOOTINGS QUOTE SAYS VIRGINIA JOHNSON A COMMUNITY ACTIVIST BUT INSTEAD OF BUILDING A WALL AROUND THE UNIVERSITY FATHER DIULIO HAS LED MARQUETTE IN REBUILDING THE COMMUNITY I COULD SEE WHERE WE WERE GOING I COULD SEE THE ECONOMIC CONSEQUENCES AND I COULD SEE THE ECONOMIC POTENTIAL OF REVERSING THE DECLINE HE SAYS MARQUETTE'S SITUATION EXEMPLIFIED A TOWN AND GOWN DILEMMA CONFRONTING MANY URBAN COLLEGES AND UNIVERSITIES BUILT NEAR CITY CENTERS ON ONCE PRIME ACREAGE THEY NOW ARE ENCIRCLED BY NEIGHBORHOODS MIRED IN CRIME DECAY AND HUMAN MISERY SECURITY CONCERNS OFTEN COMPETE WITH EDUCATION FOR ATTENTION AND FINANCIAL RESOURCES SOME INSTITUTIONS HAVE BAILED OUT OF THE CITIES IN THE WAKE OF THE WATTS RIOTS IN SOUTH CENTRAL LOS ANGELES PEPPERDINE LEFT THE AREA FOR MALIBU CALIFORNIA IN NINETEEN SEVENTY TWO MARQUETTE'S FORMER MEDICAL SCHOOL MOVED TO A SUBURB IN THE NINETEEN SIXTIES BUT NOW MANY URBAN SCHOOLS ARE NO LONGER TRYING TO PUT DISTANCE BETWEEN THEMSELVES AND THEIR TROUBLED SURROUNDINGS INSTEAD ALL OVER THE COUNTRY INSTITUTIONS HAVE BEEN GETTING MORE INVOLVED IN ATTACKING PROBLEMS OF THEIR HOME TURF THE UNIVERSITY OF SOUTHERN CALIFORNIA HAS BECOME INVOLVED IN PROVIDING COUNSELING TUTORING AND COLLEGE PREPARATORY CLASSES FOR CHILDREN IN SOUTH CENTRAL LOS ANGELES YALE HAS AGREED TO INVEST FIFTY MILLION DOLLARS IN IMPROVEMENT PROJECTS IN NEW HAVEN CONNECTICUT WHILE MORE THAN HALF OF ITS STUDENTS ARE VOLUNTEERING IN LOCAL SOCIAL SERVICE PROGRAMS AND ILLINOIS INSTITUTE OF TECHNOLOGY IS GETTING MORE INVOLVED IN COMMUNITY REVITALIZATION EFFORTS ON CHICAGO'S SOUTH SIDE IT IS DIFFERENT FROM THE NINETEEN SIXTIES AND NINETEEN SEVENTIES WHEN THE SCHOOL WAS TRYING TO PUT IN A BUFFER BETWEEN ITSELF AND THE COMMUNITY SAYS LEROY KENNEDY I. I. T.'S VICE PRESIDENT FOR COMMUNITY RELATIONS YOU CAN ONLY RUN SO FAR IN THE NEIGHBORHOODS AROUND THE UNIVERSITY CRIME HAD BEEN STEADILY RISING OVER THE YEARS AND OCCASIONALLY SPILLED ONTO CAMPUS THREE STUDENTS BECAME HOMICIDE VICTIMS BETWEEN NINETEEN EIGHTY FIVE AND NINETEEN NINETY ONE TWO OF THE KILLINGS OCCURRED NEAR THE SCHOOL THEN JEFFREY DAHMER WAS ARRESTED IN JULY NINETEEN NINETY ONE FOR MULTIPLE MURDERS AND CANNIBALISM HIS APARTMENT WHERE SOME OF THE VICTIMS' REMAINS WERE FOUND WAS JUST TEN BLOCKS FROM MARQUETTE MAPS ACCOMPANYING DAHMER STORIES OFTEN USED THE CAMPUS AS A REFERENCE POINT ATTENDANCE AT EVENING CAMPUS EVENTS FELL GRADUATE STUDENTS SOUGHT HOUSING ELSEWHERE FRESHMAN ENROLLMENT TWO THOUSAND ONE HUNDRED THIRTEEN IN NINETEEN EIGHTY NINE PLUNGED TO ONE THOUSAND SIX HUNDRED EIGHTY FIVE IN NINETEEN NINETY THREE IF MARQUETTE WAS TO STAY IN THE COMMUNITY FATHER DIULIO SAW JUST TWO OPTIONS WE COULD WALL OURSELVES IN OR WE COULD WEAVE OURSELVES IN DOING THE LATTER MEANT MELDING WITH A NEIGHBORHOOD SPICED WITH RACIAL AND ETHNIC DIVERSITY BUT SOURED BY POVERTY AND NEGLECT IT WAS A PLACE THAT HAD BECOME QUOTE OLDER RATHER THAN YOUNGER POORER RATHER THAN RICHER QUOTE SAYS THE FIFTY YEAR OLD FATHER DIULIO A MARQUETTE STUDENT IN THE EARLY NINETEEN SIXTIES IN NINETEEN NINETY MOST OF THE SIXTEEN THOUSAND OR SO RESIDENTS IN AVENUES WEST HAD INCOMES BELOW POVERTY LEVEL ACCORDING TO CENSUS DATA ABOUT SIXTY PERCENT OF THE BUILDINGS CONTAINED TWENTY OR MORE RENTAL UNITS AND ONLY FOUR POINT TWO PERCENT OF HOUSING UNITS WERE OWNER OCCUPIED MUCH OF THE PROPERTY WAS OWNED BY ABSENTEE LANDLORDS WHO LET IT FALL INTO DISREPAIR OR CEDED IT TO DRUG DEALERS IN CASTING MARQUETTE'S LOT WITH AVENUES WEST FATHER DIULIO DECIDED TO TAKE A COMPREHENSIVE APPROACH THAT WOULD GO BEYOND SIMPLY RESTORING PROPERTY YOU CAN'T JUST SAY YOU'RE INTERESTED IN STUDENT HOUSING HE SAYS AND IT WOULD TAKE MORE THAN ALTRUISM TO WIN SUPPORT OF MARQUETTE'S TRUSTEES HE REASONED TO SELL THIS TO THE BOARD IT HAD TO BE IN ROCK SOLID UNDERSTANDABLE BUSINESS TERMS HIS EMPHASIS ON THE PRAGMATIC PERSUADED TRUSTEES IN LATE NINETEEN NINETY ONE TO COMMIT NINE MILLION DOLLARS IN UNIVERSITY FUNDS HEARING OF THE PRESIDENT'S PLANS A WEALTHY WIDOW AND LONGTIME MILWAUKEE RESIDENT DONATED EIGHT POINT TWO MILLION DOLLARS ANONYMOUSLY ANOTHER ANONYMOUS DONOR GAVE FIVE HUNDRED THOUSAND DOLLARS ALTHOUGH HE HAD A BUSINESS BACKGROUND FATHER DIULIO KNEW LITTLE ABOUT REAL ESTATE HE HIRED AN ALUMNUS PATRICK LESAGE FIFTY A FORMER REAL ESTATE DEVELOPER AND ENTREPRENEUR MR. LESAGE AND A SMALL STAFF BEGAN WORKING FROM A NINETEEN EIGHTY EIGHT STUDY ASSESSING THE COMMUNITY'S NEEDS AND COMMISSIONED BY AVENUES WEST ASSOCIATION A CIVIC GROUP THEY FORMED TWO NONPROFIT CORPORATIONS ONE FOR RESIDENTIAL AND THE OTHER FOR COMMERCIAL REAL ESTATE THEN SEVERAL LOCAL ORGANIZATIONS WERE RECRUITED AS PARTNERS INCLUDING THE AVENUES WEST ASSOCIATION AURORA HEALTH CARE SYSTEM WHICH RUNS SINAI SAMARITAN MEDICAL CENTER THE AREA'S LAST REMAINING HOSPITAL AND AMERITECH OF WISCONSIN WHICH HAS FACILITIES IN THE AREA WITH MORE THAN THREE HUNDRED EMPLOYEES AURORA WITH ONE THOUSAND FOUR HUNDRED EMPLOYEES AT SINAI MEDICAL HAS PROMISED FOUR POINT ONE MILLION DOLLARS IN LAND CASH AND SERVICES WE DECIDED THAT INSTEAD OF CRYING IN OUR BEER ABOUT THE NEIGHBORHOOD WE'VE GOT TO DO SOMETHING ABOUT IT SAYS AURORA'S PRESIDENT ED HOWE IN DECEMBER NINETEEN NINETY ONE MARQUETTE AND ITS PARTNERS LAUNCHED CAMPUS CIRCLE PROJECT ITS AIM WAS TO BUY RESIDENTIAL AND COMMERCIAL PROPERTIES INCLUDING SEVERAL BARS CATERING TO THE BOTTLE IN A PAPER BAG CROWD FIX THEM UP AND LEASE THEM PRIORITIES WERE TO CLEAN UP CRIME UPGRADE THE REAL ESTATE AND KEEP HOUSING AFFORDABLE WHILE RETAINING THE COMMUNITY'S ETHNIC AND ECONOMIC DIVERSITY BUT MANY RESIDENTS REACTED WITH SUSPICION IT HAS NOT BEEN IN MARQUETTE'S HISTORY TO WORK IN THE COMMUNITY SAYS JOYCE HENRY WHO RUNS A HALFWAY HOUSE FOR HOMELESS PEOPLE QUOTE THEIR COMMUNITY YES THE REST OF THE COMMUNITY NO FATHER DIULIO CONCEDES THAT PREVIOUSLY BEYOND OFFERING SOME HEALTH AND LEGAL SERVICES MARQUETTE SIMPLY DID NOT DO ANYTHING IN THE NEIGHBORHOOD TO GAIN SUPPORT MARQUETTE FORMED NEIGHBORHOOD CIRCLE MADE UP OF REPRESENTATIVES FROM LOCAL BUSINESSES CHURCHES COMMUNITY GROUPS AND SOME RESIDENTS TO HELP IN PLANNING AND TO KEEP PEOPLE INFORMED THEY HELD SCORES OF MEETINGS WITH ORGANIZATIONS LANDLORDS TENANTS AND CITY OFFICIALS WHEN INITIAL TURNOUT WAS POOR THEY BEGAN SERVING FOOD AT MEETINGS WE WENT ON A ROAD SHOW SAYS MR. LESAGE MS. JOHNSON THE COMMUNITY ACTIVIST WHO OWNS A TAX PREPARATION AND ACCOUNTING SERVICE ATTENDED ONE OF THE EARLY GATHERINGS AND SPOKE OUT FORCEFULLY ON BEHALF OF LOW INCOME RESIDENTS SHE UZIED US RECALLS SANDRA HINTZ VICE PRESIDENT OF CAMPUS CIRCLE WHO WAS THERE TO HEAR THE CRITICISM MS. JOHNSON SAYS HER CONCERN THEN WAS THAT MARQUETTE HAD THIS FANCY PLAN THAT WAS LIKE AN ELEGANT BOX WITH NOTHING BUT A CARD INSIDE ATTITUDES SOFTENED AS CAMPUS CIRCLE BOUGHT ONE APARTMENT HOUSE AFTER ANOTHER RENOVATING SOME UNITS AND TEMPORARILY BOARDING UP OTHERS THAT REQUIRED EXTENSIVE OVERHAUL IN ONE STRUCTURE WITH SIXTY APARTMENTS MORE THAN TWO THIRDS HAD BEEN DAMAGED BY FIRE OR USED FOR DRUG ACTIVITY IT HAS BEEN SOLD TO BE CONVERTED TO LOW INCOME HOUSING FOR THE ELDERLY WHENEVER POSSIBLE OCCUPANTS WERE ALLOWED TO REMAIN IN THEIR BUILDINGS BUT SOME WERE RELOCATED IN THE NEIGHBORHOOD STUDENTS AND NON STUDENTS WERE MOVED INTO SOME OF THE SAME BUILDINGS TENANTS SUSPECTED OF DRUG DEALING WERE SENT A MESSAGE THAT THEY WEREN'T WANTED AS THE NEW OWNERS HIRED SECURITY GUARDS TO PATROL PROPERTIES AND ENFORCED LEASE CLAUSES BANNING MISUSE OF PREMISES OTHER LANDLORDS IN THE AREA WERE NOTIFIED OF THE EVICTIONS QUOTE NO LOITERING QUOTE AND QUOTE NO TRESPASSING QUOTE SIGNS BEGAN APPEARING IN APARTMENT HOUSE LOBBIES AND TENANTS AND VISITORS WERE ADMONISHED AGAINST DRINKING OR MAKING LOUD NOISES OUTSIDE THE BUILDINGS SOME COMMUNITY LEADERS HAVE CRITICIZED THE APPROACH AS HEAVY HANDED THEY HAVE WHAT APPEAR TO BE VALID COMMUNITY GOALS BUT THE PROCESS IS QUESTIONABLE SAYS MACCANON BROWN A LONGTIME ADVOCATE FOR THE POOR AND HOMELESS IN AVENUES WEST SHE HAS REPEATEDLY AT MEETINGS AND IN THE PRESS CHARGED THE PROJECT WITH INSENSITIVITY TOWARD THE POOR CAMPUS CIRCLE IS BETTER THAN WHAT WE HAD BUT THE PEOPLE I'M IN THE NETWORK WITH ARE PRIMARILY THE POOR WHO HAVE WATCHED MARQUETTE FOR MANY YEARS AND KNOW THEY HAVE BEEN A BAD CITIZEN SHE SAYS SOME RENTERS GRIPED THAT THE NEW LANDLORDS TOOK TOO LONG TO COMPLETE REPAIRS ONE FORMER TENANT DENNIS HODOROWSKI FORTY FIVE SAYS HIS TREATMENT BY CAMPUS CIRCLE AMOUNTED TO HARASSMENT AFTER HE WAS TOLD HE WAS BEHIND IN HIS RENT THEY GAVE ME FIVE DAYS NOTICE OF EVICTION BUT THEY COULDN'T FIND WHERE I HAD A MISSING PAYMENT HE SAYS CAMPUS CIRCLE STAFFERS ATTRIBUTE SOME OF THE PROBLEMS TO OUTSIDE CONTRACTORS HIRED TO PROVIDE SECURITY AND MANAGEMENT SERVICES THEY SAY SOME ERRONEOUS EVICTION NOTICES WERE SENT BECAUSE OF BOOKKEEPING PROBLEMS CAUSED BY THE CHANGE IN OWNERSHIP TO CAMPUS CIRCLE WE ACQUIRED A LOT OF PROPERTIES IN A SHORT PERIOD OF TIME SAYS ART MURCHINSON MANAGER OF TENANT RELATIONS QUOTE THEY HAD HAD ABSENTEE LANDLORDS THAT DIDN'T CARE ABOUT THE NEIGHBORHOOD OR THE BUILDINGS AND ALLOWED ANY AND EVERYBODY TO MOVE INTO THEM WITHOUT ANY TYPE OF SCREENING PROCESS QUOTE THE CONFUSION SUBSIDED WHEN CAMPUS CIRCLE ITSELF BEGAN MANAGING THE PROPERTIES AND PROVIDING SECURITY SCREENED TENANT APPLICANTS MORE CLOSELY INSTALLED NEW LOCKS AND OTHER PROTECTION DEVICES AND HELPED FORM TENANT COUNCILS IT ALSO BEGAN RENOVATING THE SMALL BUSINESS DISTRICT NEAR CAMPUS BUYING NINE OF THE FIFTEEN TAVERNS ALL BUT THREE OF THE NINE BARS HAVE BEEN CLOSED AND FIVE HAVE BEEN DEMOLISHED OR ARE SCHEDULED TO BE RESIDENTS RESPONDING TO A QUESTIONNAIRE SAID A SUPERMARKET WAS A TOP PRIORITY ALTHOUGH THE NEIGHBORHOOD'S DEMOGRAPHICS HAVE BEEN A TURNOFF FOR MAJOR SUPERMARKET CHAINS CAMPUS CIRCLE IS TRYING TO WOO A STORE WAY ABOVE ANYTHING THE NEIGHBORHOOD HAS HAD SAYS FATHER DIULIO IT WOULD BE PART OF CAMPUS TOWN CAMPUS CIRCLE'S THIRTY MILLION DOLLARS MAKEOVER OF BUSINESS AND APARTMENT BUILDINGS NEAR MARQUETTE WHEN COMPLETED THIS FALL CAMPUS TOWN WILL HAVE ONE HUNDRED FIFTY TWO APARTMENTS AN ATHLETIC CENTER AND EIGHTY NINE THOUSAND SQUARE FEET OF COMMERCIAL SPACE INCLUDING A BLOCKBUSTER VIDEO STORE THAT IS ALREADY OPEN ALL OF THIS ACTIVITY HAS ATTRACTED SOME DEVELOPERS INTO THE NEIGHBORHOOD SEPARATE FROM MARQUETTE'S EFFORTS LAST AUGUST A BUILDER COMPLETED A ONE HUNDRED SEVENTY NINE UNIT APARTMENT COMPLEX ADJACENT TO CAMPUS TOWN THE VIEW FROM THE COMMUNITY NOW IS THAT THINGS ARE LOOKING UP I SAW THE DOWNSLIDE AND NOW I THINK WE'RE ON THE REBOUND SAYS TOM WISEMAN OWNER OF BRETT FUNERAL HOME AND A BUSINESSMAN IN THE AREA SINCE NINETEEN SIXTY EIGHT CAMPUS CIRCLE NOW OWNS AND MANAGES ONE THOUSAND ONE HUNDRED THIRTEEN UNITS IN ONE HUNDRED THIRTY SEVEN PROPERTIES THAT INCLUDE RESIDENTIAL AND COMMERCIAL BUILDINGS AND VACANT LOTS IT HAS SPENT TWENTY FIVE MILLION DOLLARS TO BUY PROPERTY THREE MILLION DOLLARS ON HOUSING REHABILITATION AND TWENTY SIX MILLION DOLLARS ON CAMPUS TOWN AMONG RESIDENTS WHO HAD TO BE RELOCATED BECAUSE OF REDEVELOPMENT SEVENTY FOUR PERCENT REMAIN IN THE COMMUNITY CAMPUS TOWN FINANCING WAS AIDED BY A FOUR POINT ONE SEVEN MILLION DOLLAR LOW INTEREST LOAN FROM THE CITY OF MILWAUKEE TIED TO FUTURE PROPERTY TAX REVENUE FROM THE PROJECT THE CITY ALSO HAS AGREED TO SPEND SEVEN HUNDRED FIFTY THOUSAND DOLLARS TO IMPROVE THE AREA'S STREETS THIS PROJECT IS UPLIFTING NOT JUST FOR THIS NEIGHBORHOOD BUT FOR OTHER PARTS OF THE CITY SAYS MAYOR JOHN NORQUIST I SEE IT AS A MODEL SO DO OTHER URBAN UNIVERSITIES THAT HAVE COME TO TAKE A LOOK INCLUDING LOYOLA IN CHICAGO THE UNIVERSITY OF CINCINNATI ILLINOIS INSTITUTE OF TECHNOLOGY AND THE UNIVERSITY OF SOUTHERN CALIFORNIA I THINK THERE IS A REAL NEED TO REACH OUT TO DEVELOP THOSE SORTS OF BRIDGES BETWEEN THE COMMUNITIES THAT SURROUND US SAYS MARSHALL GOODMAN AN ASSOCIATE DEAN AT THE UNIVERSITY OF CINCINNATI AT MARQUETTE THE OUTREACH HAS GONE BEYOND REBUILDING THE CITY SCAPE SOME MARQUETTE STUDENTS TUTOR NEIGHBORHOOD CHILDREN IN ADDITION THE UNIVERSITY HAS RECEIVED SIX HUNDRED FIFTY THOUSAND DOLLARS FROM THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR PROGRAMS IN CRIME PREVENTION AND LANDLORD TENANT RELATIONS THE BATTLE AGAINST CRIME IN THE COMMUNITY ISN'T WON BUT IT IS MAKING SIGNIFICANT GAINS MAYOR NORQUIST SET UP A POLICE MINI PRECINCT IN THE AREA STAFFED WITH FIFTY OFFICERS THE POLICE CRACKED DOWN ON AN QUOTE OPEN DRUG MARKET QUOTE ALONG SEVERAL BLOCKS SAYS LIEUTENANT ROBERT SURDYK SOME OF MY OFFICERS EVEN WROTE SUSPECTED DEALERS PEDESTRIAN TICKETS FOR OBSTRUCTING TRAFFIC THEY'D STAND OUT IN THE STREET AND SELL TO PASSING CARS HE ADDS THAT IN THE FIRST HALF OF NINETEEN NINETY THREE MORE THAN TWO HUNDRED PROSTITUTION CITATIONS WERE ISSUED THROUGH LAST SEPTEMBER MAJOR CRIME IN AVENUES WEST WAS DOWN THIRTY FOUR PERCENT FROM A YEAR BEFORE LIEUTENANT SURDYK SAYS MANY COMPLAINTS NOW HAVE TO DO WITH QUALITY OF LIFE ISSUES SUCH AS LOUD RADIOS ILLEGAL PARKING AND LOITERING SAID VIRGINIA JOHNSON RECENTLY I HAVEN'T HEARD A GUNSHOT IN TWO WEEKS OSHA VOWS A CRACKDOWN BUT PLEDGES LENIENCY FOR SMALL BUSINESSES JOE DEAR WHO BECAME DIRECTOR OF THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION IN NOVEMBER SAYS THE AGENCY IS PREPARING QUOTE AN INITIATIVE TO INCREASE ENFORCEMENT THROUGH BETTER TARGETING OF THE MOST HAZARDOUS WORKPLACES QUOTE IN THE PAST OSHA MADE INSPECTIONS MOSTLY IN RESPONSE TO COMPLAINTS UNDER THE NEW POLICY IT WILL BE SINGLING OUT FOR SURVEILLANCE WORK SITES THAT ARE MOST EXPOSED TO THREE RISKS CONFINED SPACE PROBLEMS LEAD IN CONSTRUCTION MATERIALS AND TUBERCULOSIS MR. DEAR SAYS BUSINESSES PARTICULARLY AFFECTED INCLUDE HEALTH CARE FACILITIES NURSING HOMES CONSTRUCTION COMPANIES AND MANUFACTURERS WHOSE PLANTS CONTAIN POTENTIALLY DANGEROUS CHEMICALS HE ADDS MANY OF THESE ENTERPRISES ARE SMALL THIS WILL SEND A CLEAR MESSAGE TO EMPLOYERS ON THE LOW ROAD THAT THE COST OF NONCOMPLIANCE WILL GO UP HE SAYS BUT MR. DEAR ALSO OFFERS A BREAK TO OWNERS OF SMALL HIGH HAZARD BUSINESSES THEY WON'T BE PUNISHED FOR VIOLATIONS IF THEY SEEK OSHA'S HELP IN CORRECTING THE PROBLEMS IF YOU ASK FOR HELP AND ABATE BY AN AGREED DATE THERE'S NO PENALTY HE SAYS PLEAD POVERTY NOT IGNORANCE BUREAUCRATS TELL A BOYCOTT LAW VIOLATOR GOTKO INTERNATIONAL INCORPORATED A HOUSTON MAKER OF OIL FIELD EQUIPMENT WITH TWO POINT FIVE MILLION DOLLARS IN SALES LAST YEAR DOES NINETY NINE PERCENT OF ITS BUSINESS OVERSEAS SO SHORTLY AFTER KENNETH PENSKE TOOK OVER AS COMPANY PRESIDENT IN NINETEEN EIGHTY FOUR HE WROTE TO THE LOCAL DEPARTMENT OF COMMERCE OFFICE ASKING FOR AS MUCH INFORMATION AS POSSIBLE ABOUT WHAT HE SHOULD DO TO COMPLY WITH ALL U. S. LAWS MR. PENSKE SAYS THE LETTER AND TWO FOLLOW UP REQUESTS ALL WENT UNANSWERED A CLAIM THE DEPARTMENT DOESN'T CONTEST BUT AS HE WAS TO DISCOVER IGNORANCE OF THE LAW IS NO EXCUSE MR. PENSKE SAYS HE LATER SIGNED A STATEMENT REQUESTED BY SYRIA THAT HE OBSERVED THE RULES OF ITS BOYCOTT OF ISRAEL I NEVER SOLD ANYTHING TO ISRAEL BECAUSE ISRAEL DOESN'T DO ANY OIL DRILLING HE SAYS I HAD NO IDEA I WAS VIOLATING U. S. LAW WHICH FORBIDS AMERICAN COMPANIES FROM TAKING PART IN THE ARAB BOYCOTT OF THE JEWISH STATE MOREOVER HE SAYS THE STATEMENT WAS ON A CHECKLIST OF ITEMS FOR ESTABLISHING A LETTER OF CREDIT A MATTER THAT WAS BEING HANDLED BY A LARGE U. S. BANK AS A SMALL MANUFACTURER MR. PENSKE SAYS HE ASSUMED THE BANK WOULD ALERT HIM OF ANY POTENTIAL PROBLEM IN NINETEEN EIGHTY EIGHT HE SAYS HE AGAIN SOUGHT INFORMATION FROM THE COMMERCE DEPARTMENTAGAIN TO NO AVAIL THREE YEARS LATER HE SAYS HE BECAME AWARE OF HIS UNWITTING PARTICIPATION IN THE BOYCOTT HE SAYS HE IMMEDIATELY INFORMED THE INTERNAL REVENUE SERVICE THE AGENCY THAT HIS LAWYER SUGGESTED SHOULD BE CONTACTED AND SENT A LETTER OF RETRACTION TO SYRIA AS A RESULT OF HIS INITIATIVE HE SAYS THE DEPARTMENT OF COMMERCE AUDITED HIS BOOKS LAST FEBRUARY IT NOTIFIED HIM THAT HE WAS GUILTY OF BOYCOTT LAW VIOLATIONS AND SAID IT PLANNED TO FINE HIM ONE HUNDRED NINETY THOUSAND DOLLARS IT LATER REDUCED THAT AMOUNT TO NINETY THOUSAND DOLLARS CITING HIS COMPLAINTS ABOUT ITS UNRESPONSIVENESS AND OTHER QUOTE MITIGATING FACTORS QUOTE MR. PENSKE SAYS HE HAS OFFERED TO PAY FIVE THOUSAND DOLLARS BUT ONLY IF THE COMMERCE DEPARTMENT ADMITS ITS NEGLIGENCE THE AGENCY WON'T COMMENT BUT IN A LETTER TO SENATOR PHIL GRAMM R. TEXAS IT INDICATED THAT THE PENALTY COULD BE SUSPENDED IF GOTKO CAN SHOW THE COST WOULD CAUSE IT SEVERE FINANCIAL HARDSHIP THAT SHOULD BE EASY MR. PENSKE SAYS HIS COMPANY WHICH WAS NAMED THE HOUSTON AREA'S SMALL BUSINESS EXPORTER OF THE YEAR BY THE SMALL BUSINESS ADMINISTRATION LAST MARCH HAD NINETEEN NINETY THREE LOSSES IN THE TENS OF THOUSANDS OF DOLLARS AND IS SADDLED WITH HUNDREDS OF THOUSANDS OF DOLLARS OF DEBT HOWEVER THE DISPUTE ENDS MR. PENSKE WONDERS WHY THE U. S. SOUGHT TO FINE HIS BUSINESS A SUM EQUAL TO NEARLY EIGHT PERCENT OF ANNUAL REVENUE WHILE FINING A UNIT OF AMERICAN EXPRESS COMPANY ONLY ONE HUNDRED THREE THOUSAND DOLLARS LAST YEAR FOR THE SAME ALLEGED OFFENSE A BAKERY FIGHTS VERMONT'S BID TO TAKE A BIGGER TAX BITE OUT OF ITS BAGELS THE BURLINGTON BAGEL BAKERY'S SHOPS ALWAYS CHARGED CUSTOMERS THE STATE'S SEVEN PERCENT MEALS TAX ON BAGELS SOLD FOR IMMEDIATE CONSUMPTION BUT NEVER ON LOOSE BAGELS TAKEN HOME IN BAGS TO BE EATEN LATER AFTER ALL CO OWNER ANDY GOLBERT SAYS BAGELS SOLD IN GROCERY STORES AND DELICATESSENS AREN'T TAXED SO WHEN THE VERMONT TAX DEPARTMENT SENT HIM A FIFTY THOUSAND DOLLAR BILL LAST SUMMER FOR THREE YEARS IN BACK TAXES ON TAKEOUT BAGELS HE FOUND THE PENALTY HARD TO SWALLOW THE DEPARTMENT LATER REDUCED THE SUM TO NINETEEN THOUSAND DOLLARS COVERING ONLY SALES OF FIVE BAGELS OR FEWER HE SAYS BUT MR. GOLBERT MAINTAINS THAT HE DOESN'T OWE THE STATE A PENNY LAST WEEK HE TESTIFIED AT HEARINGS BY THE STATE HOUSE WAYS AND MEANS COMMITTEE AIMED AT CLARIFYING THE DEFINITION OF NONTAXABLE BULK FOODS I TOLD THEM I'D LIKE TO MEET THE GUY WHO EATS FIVE BAGELS FOR LUNCH HE SAYS THE STATE TAX DEPARTMENT WON'T COMMENT ON MR. GOLBERT'S CASE BUT AN OFFICIAL SAYS THE LEGISLATURE IS CONSIDERING REDUCING THE TAKEOUT THRESHOLD TO FOUR FROM SIX BAGELS HE ADDS THAT THE IMPLEMENTATION QUOTE OF ANY LAW MEANT TO TAX SNACKS AND GROCERIES SEPARATELY IS ALWAYS GOING TO BE AWKWARD QUOTE THE BAGEL BROUHAHA IS PART OF A NATIONAL DEBATE OVER WHETHER THE SAME FOODS TAKEN OUT OF RESTAURANTS AND GROCERY STORES SHOULD BE TAXED IDENTICALLY SAYS LINDA WAY MANAGER OF STATE LEGISLATIVE AFFAIRS AT THE NATIONAL RESTAURANT ASSOCIATION THE RESTAURANT COMMUNITY HAS LONG ARGUED THERE'S AN UNEVEN PLAYING FIELD SHE ADDS ENVIRONMENTAL RULES RATE AS THE MOST ONEROUS A NEW SURVEY SHOWS IN A POLL BY CONSULTING FIRM GRANT THORNTON OF TWO HUNDRED FIFTY THREE SMALL AND MEDIUM SIZED MANUFACTURING COMPANIES THIRTY SEVEN PERCENT SAID ENVIRONMENTAL REGULATIONS WERE THE MOST BURDENSOME THAT WAS MORE THAN DOUBLE THE SIXTEEN PERCENT OF RESPONDENTS THAT CITED TAX REGULATIONS AND THE FIFTEEN PERCENT THAT NAMED WORKPLACE RULES MICHAEL CANTWELL THE GRANT THORNTON'S NATIONAL DIRECTOR FOR MANUFACTURING SAYS THE FAST GROWTH OF ENVIRONMENTAL REGULATIONS AT ALL LEVELS OF GOVERNMENT AND THEIR OFTEN ARBITRARY ENFORCEMENT CREATE THE PROBLEM AS ENVIRONMENTAL LAW GETS MORE COMPLEX IT PLACES AN ENORMOUS BURDEN ON BUSINESSES JUST TO KEEP ABREAST OF IT MUCH LESS INTERPRET IT AND FILL OUT ALL THE COMPLIANCE REPORTS HE SAYS MOREOVER HE ADDS SMALL MANUFACTURERS SENSE THAT MANY PEOPLE AT ENVIRONMENTAL AGENCIES HAVE AN ANTIBUSINESS BIAS EO INCORPORATED THE TINY A. T. AND T. COMPANY THAT AIMED TO PUT LITTLE DATA COMMUNICATORS IN THE HANDS OF MILLIONS HAS GONE BACK TO THE DRAWING BOARD AFTER SELLING FEWER THAN TEN THOUSAND OF ITS DEVICES THE COMPANY WILL SOON ANNOUNCE A QUOTE REFOCUS QUOTE AND NEW INVESTMENT STRATEGY THAT POSITIONS ITS PRODUCTS AS QUOTE SMART CELLULAR TELEPHONES QUOTE ACCORDING TO OFFICIALS AT AMERICAN TELEPHONE AND TELEGRAPH COMPANY AND EO SANTA CLARA CALIFORNIA AN A. T. AND T. SPOKESMAN SAID THE STRATEGY CHANGE COULD INCLUDE NEW EQUITY PARTNERS IN THE COMPANY ALTHOUGH A. T. AND T. INTENDS TO REMAIN THE MAJORITY HOLDER EO'S DECISION TO POSITION ITSELF AS A MAKER OF INTELLIGENT PHONES UNDERSCORES THE PROBLEMS THAT MANUFACTURERS INCLUDING A. T. AND T. APPLE COMPUTER INCORPORATED AND OTHERS ARE HAVING SELLING THE PUBLIC ON HAND HELD DATA COMMUNICATORS JUST LAST WEEK COMPAQ COMPUTER CORPORATION DELAYED ITS OWN PROGRAM TO BRING DATA COMMUNICATORS TO MARKET BECAUSE OF CONCERNS OVER THE QUALITY OF PEN BASED SOFTWARE THAT ALLOWS SUCH DEVICES TO CONVERT HANDWRITING TO DIGITAL FORM AT STAKE IS A MARKET WITH A POTENTIAL VALUE OF BILLIONS OF DOLLARS AS PEOPLE FLOCKING TO WIRELESS DEVICES SUCH AS CELLULAR PHONES LOOK FOR WAYS TO SEND A MESSAGE OVER THE SAME NETWORKS BUT MANUFACTURERS ARE STILL HUNTING FOR THE RIGHT DESIGN FEATURES AND PRICING APPLE'S NEWTON WHICH SELLS FOR ABOUT ONE THOUSAND DOLLARS WITH COMMUNICATIONS ATTACHMENTS GOT OFF TO A FAST START BUT HAS SINCE DWINDLED TO ABOUT SEVEN THOUSAND FIVE HUNDRED UNITS A MONTH PRIMARILY BECAUSE SOME OF ITS FEATURES DIDN'T WORK TOO WELL EVEN SO NEWTON SALES WERE A LOT COMPARED TO THOSE OF EO INDUSTRY EXPERTS ASSERT THAT EO HAS SOLD ABOUT EIGHT THOUSAND OF ITS MORE EXPENSIVE TWO THOUSAND FIVE HUNDRED DOLLARS ETCH A SKETCH SIZED MODEL FOUR HUNDRED FORTY SINCE LAST SPRING DECLINING TO COMMENT ON EO'S SALES NUMBERS WINK GRELIS EO'S DIRECTOR OF CUSTOMER MARKETING SAID WE LEARNED A LOT FROM OUR FOUR HUNDRED FORTY PRODUCT A TABLET DEVICE TYPE OF PRODUCT IS NOT SOMETHING PEOPLE RELATE TO AS MUCH AS COMMUNICATIONS NOW EO WILL REVAMP ITS LINE WITH A NEW FLIP OPEN MODEL THAT HAS A LITTLE COMPUTER SCREEN AND A PHONE BUILT INTO IT ACCORDING TO INDIVIDUALS WHO HAVE SEEN PROTOTYPES AN A. T. AND T. SPOKESMAN SAYS THE PRICING WILL CHANGE DRASTICALLY AS WELL THE BALLPARK WILL BE ONE THOUSAND DOLLARS TO ONE THOUSAND FIVE HUNDRED DOLLAR RANGE HE SAID IN EO'S AND A. T. AND T.'S CASE REFOCUSING THE SALES PITCH WOULD APPEAR TO BE A MAJOR DEFEAT IN THEIR INITIAL STRATEGY TO SELL DEVICES THAT ALLOW CONSUMERS TO COMMUNICATE BY SENDING EACH OTHER WRITTEN MESSAGES A. T. AND T.'S MULTIMEDIA CHIEF ROBERT M. KAVNER ONCE TOUTED DATA COMMUNICATORS AS THE MEMO SENDERS OF THE FUTURE ONLY TO BE TRUMPED BY FORMER APPLE CHAIRMAN JOHN SCULLEY'S HYPE FILLED LAUNCH OF THE APPLE NEWTON AS THE PERSONAL DIGITAL ASSISTANT OF THE FUTURE NOW A. T. AND T.'S EO WILL HAVE TO SELL ITS PRODUCTS AS PHONES AFTER ALL WITH SOME COMPUTER SMARTS THROWN IN THE EO PROMOTION FOLLOWED MR. KAVNER'S HIGH PROFILE PUSH OF VIDEOPHONES AT A. T. AND T. BUT THE VIDEOPHONE HAS BEEN A CRASHING FAILURE WITH HARDLY ANY SELLING M. C. I. COMMUNICATIONS CORPORATION WHICH ANNOUNCED ITS OWN VIDEOPHONE MADE BY A U. K. MANUFACTURER TO RIVAL A. T. AND T.'S NEVER BROUGHT ITS PHONE TO MARKET IN THE U. S. FOR THE THIRD YEAR IN A ROW MOST BIG BROKERAGE HOUSES CAN BOAST OF THEIR WINNING STOCK PICKS STOCKS ON THE OFFICIAL RECOMMENDED LISTS OF SIXTEEN LARGE BROKERAGE HOUSES ACHIEVED AN AVERAGE TOTAL RETURN INCLUDING PRICE CHANGE PLUS DIVIDENDS OF NINETEEN POINT SIX PERCENT LAST YEAR ACCORDING TO A CONTINUING STUDY BY THIS NEWSPAPER AND ZACKS INVESTMENT RESEARCH INCORPORATED OF CHICAGO THREE QUARTERS OF THE RECOMMENDED LISTS OUTPERFORMED THE TEN POINT ONE PERCENT RETURN ON THE STANDARD AND POOR'S FIVE HUNDRED INDEX A STANDARD STOCK MARKET GAUGE THE FIRMS EVEN BESTED THE IMPRESSIVE GAINS OF SMALL STOCKS LAST YEAR NINE OF THE SIXTEEN RECOMMENDED LISTS BEAT THE FOURTEEN POINT SIX PERCENT RETURN OF THE WILSHIRE FOUR THOUSAND FIVE HUNDRED INDEX WHICH NOW COMPRISES FIVE THOUSAND EIGHT HUNDRED FIFTY SIX STOCKS OR JUST ABOUT EVERYTHING OUTSIDE THE S. AND P. FIVE HUNDRED PAINEWEBBER INCORPORATED'S QUOTE PERFORMANCE PORTFOLIO QUOTE LED THE COMPETITION WITH AN ESTIMATED THIRTY NINE POINT ONE PERCENT RETURN EDGING OUT RAYMOND JAMES AND ASSOCIATES' FOCUS LIST WHICH ROSE THIRTY FOUR POINT TWO PERCENT RAYMOND JAMES REMAINS THE FIVE YEAR LEADER THANKS LARGELY TO BIG SUCCESSES IN NINETEEN NINETY ONE AND NINETEEN NINETY TWO THE FIRM ALSO SCORED THE BIGGEST GAIN IN THE NINETEEN NINETY THREE FOURTH QUARTER LAST YEAR'S TRIUMPHS CONTRAST WITH THE BROKERAGE HOUSES' FLOUNDERING PERFORMANCE IN NINETEEN EIGHTY NINE AND NINETEEN NINETY WHEN MOST LAGGED BEHIND THE MARKET AVERAGES RICK CHRABASZEWSKI AN ANALYST AT ZACKS SAYS THE BROKERAGE HOUSES TYPICALLY DO BEST WHEN SMALL STOCKS ARE HOT AND WORST IN AN OVERALL BEAR MARKET PAINEWEBBER ROARING GAINS IN STOCKS LIKE L. D. D. S. COMMUNICATIONS INCORPORATED UP ONE HUNDRED FIFTY PERCENT PHYSICIAN CORPORATION OF AMERICA SEVENTY ONE PERCENT AND FISHER PRICE INCORPORATED SEVENTY PERCENT POWERED PAINEWEBBER TO THE TOP OF THE RANKINGS FOR NINETEEN NINETY THREE CUSTOMERS CAN ALSO THANK PAINEWEBBER FOR POINTING THEM TOWARD GAINS OF MORE THAN FORTY PERCENT IN ADAPTEC INCORPORATED BAROID CORPORATION AND CYGNUS THERAPEUTIC SYSTEMS INCORPORATED THE NEW YORK FIRM A UNIT OF PAINEWEBBER GROUP INCORPORATED PLACED SECOND IN THE FIVE YEAR RANKINGS AND THIRD IN THE LATEST QUARTER OF THE FIFTY FOUR STOCKS FEATURED IN ITS PERFORMANCE PORTFOLIO AT SOME POINT DURING THE YEAR THIRTY EIGHT ROSE AND ONLY SIXTEEN DECLINED THE STOCKS ARE ONLY TRACKED FOR THE TIME THEY ACTUALLY SPENT ON THE LIST THE INFORMATION HIGHWAY THEME IS ONE THAT WE WERE ON WELL OVER A YEAR AGO SAYS JAMES VOYTKO PAINEWEBBER'S DIRECTOR OF RESEARCH NOW EVERYBODY IS WORKING IT THE FIRM'S FAVORITE VEHICLES ON THE INFORMATION HIGHWAY INCLUDE L. D. D. S. TELEFONOS DE MEXICO AND U. S. WEST INCORPORATED PAINEWEBBER ALSO LIKES TAKEOVER OR RESTRUCTURING CANDIDATES SUCH AS I. C. O. INCORPORATED AN OIL SERVICE COMPANY AND IT FAVORS STOCKS SUCH AS IMPERIAL CHEMICAL INDUSTRIES LIMITED THAT WOULD BENEFIT FROM A EUROPEAN ECONOMIC RECOVERY RAYMOND JAMES THE SAINT PETERSBURG FLORIDA BROKERAGE HOUSE MADE ITS NAME WITH SHREWD PICKS OF SMALL STOCKS IN NICHES SUCH AS GAMBLING AND HEALTH CARE IT HOLDS A COMMANDING LEAD IN THE LONG TERM STANDINGS EVEN THOUGH ITS PICKS SUFFERED MORE THAN THOSE OF ANY OTHER FIRM IN THE CRASH OF NINETEEN EIGHTY SEVEN AND THE MINI CRASH OF NINETEEN EIGHTY NINE REBOUNDING HEALTH CARE STOCKS HELPED SPUR THE FIRM'S HANDSOME ELEVEN POINT THREE PERCENT GAIN IN THE NINETEEN NINETY THREE FOURTH QUARTER WE HAD SEEN THE SHAPE OF THE MONSTER THAT WAS HEALTH CARE REFORM AND CONCLUDED THAT IT WOULDN'T CHEW UP THE ENTIRE INDUSTRY SAYS RESEARCH DIRECTOR DAVID HENWOOD PHARMACEUTICAL STOCKS AND HOSPITAL STOCKS DON'T EXCITE US FOR THE NEXT THREE TO FIVE YEARS MR. HENWOOD ADDS BUT THE FIRM STILL RECOMMENDS NURSING HOME STOCKS SUCH AS BEVERLY ENTERPRISES AND LIVING CENTERS OF AMERICA INCORPORATED BECAUSE IT FIGURES THAT SUCH INSTITUTIONS WILL INCREASINGLY SERVE PATIENTS FORMERLY CARED FOR IN HIGH COST HOSPITALS THE RAYMOND JAMES FINANCIAL INCORPORATED UNIT ALSO LIKES MEDICAL DEVICE MAKERS SUCH AS C. R. BARD INCORPORATED MEDTRONIC INCORPORATED AND CORDIS CORPORATION KEMPER THE CHICAGO FIRM CAPTURED THIRD PLACE IN THE NINETEEN NINETY THREE STOCK PICKING STANDINGS BY PLAYING GREAT DEFENSE WHILE THE KEMPER CORPORATION UNIT HAD FEW BIG WINNERS IT AVOIDED LOSERS ONLY FOUR STOCKS ON KEMPER'S EQUITY OPPORTUNITY LIST DECLINED AS MUCH AS TEN PERCENT AND SEVENTY SEVEN PERCENT OF THE FORTY EIGHT STOCKS ON THE LIST ROSE KENT LILLICK A MEMBER OF KEMPER'S INVESTMENT POLICY COMMITTEE SAYS THE FIRM WILL NORMALLY REMOVE A STOCK FROM ITS LIST IF THE STOCK FALLS FIFTEEN PERCENT WE'RE NOT SWINGING FOR THE FENCES HE SAYS QUOTE WE'RE JUST TRYING TO KEEP THE BALL IN PLAY QUOTE AMONG KEMPER'S CURRENT FAVORITES ARE BANC ONE CORPORATION WHICH MR. LILLICK TERMS VERY INEXPENSIVE BASED ON HISTORICAL PARAMETERS PAYLESS CASHWAYS INCORPORATED A RETAILER ON THE REBOUND AFTER BEING HURT BY THE FLOODING IN THE MIDWEST LAST SUMMER AND WALGREEN COMPANY WHICH KEMPER THINKS IS CAPABLE OF FIFTEEN PERCENT ANNUAL GROWTH IN PROFIT DEAN WITTER DEAN WITTER REYNOLDS INCORPORATED A UNIT OF DEAN WITTER DISCOVER AND COMPANY IS HANGING ONTO THIRD PLACE IN THE FIVE YEAR RANKINGS BUT SMITH BARNEY SHEARSON A UNIT OF TRAVELERS INCORPORATED AND MERRILL LYNCH AND COMPANY ARE BREATHING DOWN ITS NECK LIKE RAYMOND JAMES DEAN WITTER FAVORS CERTAIN BEATEN UP HEALTH CARE STOCKS RESEARCH DIRECTOR MANNY KORMAN SAYS THE FIRM ESPECIALLY LIKES COLUMBIA HEALTHCARE CORPORATION AND WELLPOINT HEALTH NETWORKS INCORPORATED HE IS ALSO KEEN ON FLUOR CORPORATION A WORLD WIDE ENGINEERING AND CONSTRUCTION COMPANY WITH STRONG BUSINESS PROSPECTS IN ASIA AND LATIN AMERICA AND ON TELEFONOS DE MEXICO WHICH HE THINKS WILL PROSPER AS MEXICO CONTINUES TO INDUSTRIALIZE GOLDMAN SACHS THE U. S. PRIORITY LIST AT GOLDMAN SACHS AND COMPANY JUMPED SEVEN POINT THREE PERCENT IN THE FOURTH QUARTER THE SECOND BEST SHOWING OF ANY FIRM GOLDMAN'S BEST PICK WAS WILLIAMS SONOMA INCORPORATED A RETAILER OF UPSCALE COOKWARE WHICH SOARED SIXTY SIX PERCENT IN THE QUARTER AND ONE HUNDRED NINE PERCENT FOR THE YEAR RESEARCH DIRECTOR WILLIAM KEALY SAYS THE STOCK COULD CLIMB FURTHER THANKS PARTLY TO RENEWED VIGOR IN THE ECONOMY FOR THE SAME REASON THE NEW YORK FIRM REMAINS SWEET ON CYCLICALS SUCH AS ALASKA AIR GROUP INCORPORATED BIRMINGHAM STEEL CORPORATION CENTEX CORPORATION GEORGIA PACIFIC CORPORATION OWENS ILLINOIS INCORPORATED ROADWAY SERVICES INCORPORATED AND VARITY CORPORATION EDWARD D. JONES EDWARD D. JONES AND COMPANY A SAINT LOUIS FIRM JUST ADDED TO THE STUDY FINISHED LAST IN NINETEEN NINETY THREE WITH AN ESTIMATED RETURN OF FOUR PERCENT THE FIRM FAVORED BIG HIGH QUALITY GROWTH STOCKS WHICH FELL OUT OF FASHION LAST YEAR SAYS RESEARCH DIRECTOR RAY ROBBINS EVEN SO THE FIRM IS STICKING WITH ITS BLUE CHIP GROWTH PICKS INCLUDING MCDONALD'S CORPORATION HERSHEY FOODS CORPORATION PEPSICO INCORPORATED AND FEDERAL NATIONAL MORTGAGE ASSOCIATION WE THINK THESE STOCKS ARE CHEAP AND ATTRACTIVE MR. ROBBINS SAYS WE'RE GOING TO BE MARATHON RUNNERS WE'RE NOT SPRINTERS WE THINK THE MARATHON RUNNERS DO PRETTY WELL OVER TIME LEHMAN BROTHERS OF THE TEN FIRMS WITH FIVE YEAR RECORDS IN THE STUDY LEHMAN BROTHERS INCORPORATED OF NEW YORK RANKED LAST FOR NINETEEN NINETY THREE MEANWHILE THE SOON TO BE INDEPENDENT UNIT OF AMERICAN EXPRESS COMPANY PLACED FOURTEENTH OUT OF SIXTEEN RESEARCH DIRECTOR FRED FRAENKEL SAYS LEHMAN'S RECOMMENDED LIST QUOTE TENDS TO BE SOMEWHAT DEFENSIVE IN NATURE QUOTE TRAILING IN UP MARKETS BUT OUTPERFORMING OTHERS IN DOWN MARKETS C. S. FIRST BOSTON FOR THE FOURTH QUARTER C. S. FIRST BOSTON CORPORATION A UNIT OF C. S. HOLDING OF SWITZERLAND TRAILED THE PACK WITH A LOSS OF ZERO POINT ONE PERCENT THE NEW YORK FIRM HAD NO MAJOR DISASTERS BUT PICKED MORE LOSERS THAN WINNERS AMONG THE DUDS WERE HARCOURT GENERAL INCORPORATED UNION TEXAS PETROLEUM HOLDINGS INCORPORATED ADVANCED MICRO DEVICES INCORPORATED AND LIMITED INCORPORATED FOR THE YEAR HOWEVER C. S. FIRST BOSTON RANKED TENTH AND ITS RETURN OF TWELVE POINT TWO PERCENT BEAT THE S. AND P. THE WALL STREET JOURNAL ZACKS STUDY ESTIMATES HOW AN INVESTOR WOULD DO BY BUYING THE MOST FAVORED STOCKS FROM EACH OF SIXTEEN LEADING U. S. BROKERAGE FIRMS THE STUDY ASSUMES THE INVESTOR BUYS EVERY STOCK ON A FIRM'S RECOMMENDED LIST AND AVOIDS OR SELLS ALL OTHER STOCKS RESULTS INCLUDE DIVIDENDS AS WELL AS CAPITAL GAINS OR LOSSES A ONE PERCENT TRADING COST IS ASSESSED WHEN A STOCK IS ADDED TO OR DELETED FROM A FIRM'S LIST GOLDMAN SACHS IS JUDGED BY ITS U. S. PRIORITY LIST EDWARD D. JONES BY ITS BEST BUYS KEMPER BY ITS EQUITY OPPORTUNITY LIST KIDDER PEABODY BY ITS CORE MODEL PORTFOLIO AND SMALL CAP MODEL PORTFOLIO MERRILL LYNCH BY ITS FOCUS ONE STOCKS MORGAN STANLEY BY ITS U. S. MODEL PORTFOLIO PAINEWEBBER BY ITS PERFORMANCE PORTFOLIO PRUDENTIAL BY ITS LIST OF SINGLE BEST IDEAS AND SMITH BARNEY BY ITS PRIORITY EQUITIES RETAIL RECOMMENDED LIST BEAR STEARNS A. G. EDWARDS FIRST BOSTON AND RAYMOND JAMES ARE JUDGED BY THEIR FOCUS LISTS DEAN WITTER LEHMAN BROTHERS AND SALOMON BROTHERS BY THEIR RECOMMENDED LISTS A TABLE ACCOMPANYING TUESDAY'S ARTICLE ON BROKERAGE HOUSE STOCK PICKS CONTAINED ERRORS HARCOURT GENERAL INCORPORATED DECLINED NINETEEN PERCENT NOT TWENTY SEVEN PERCENT WHILE RECOMMENDED BY C. S. FIRST BOSTON CORPORATION IN THE FOURTH QUARTER THE FIRM'S BIGGEST QUARTERLY LOSER THEREFORE WASN'T HARCOURT BUT UNION TEXAS PETROLEUM HOLDINGS INCORPORATED DOWN TWENTY THREE PERCENT AS A RESULT C. S. FIRST BOSTON'S LIST WAS UP ZERO POINT ONE PERCENT FOR THE QUARTER INSTEAD OF DOWN ZERO POINT ONE PERCENT FOR THE YEAR IT WAS UP TWELVE POINT FOUR PERCENT NOT TWELVE POINT TWO PERCENT THE BIGGEST WINNER RECOMMENDED BY RAYMOND JAMES AND ASSOCIATES INCORPORATED IN THE QUARTER WAS CORDIS CORPORATION UP FIFTY FOUR PERCENT RATHER THAN STANLEY FURNITURE COMPANY UP FORTY ONE PERCENT THE ERRORS WERE MADE BY ZACKS INVESTMENT RESEARCH INCORPORATED WHICH PREPARED THE TABLE CONGRESSIONAL TESTIMONY BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN OFTEN TRIGGERS BIG WAVES IN THE BOND MARKET BUT NOT YESTERDAY ANOTHER WARNING BY THE FED CHIEF THAT SHORT TERM INTEREST RATES WILL AT SOME POINT MOVE HIGHER CAUSED ONLY SMALL RIPPLES YESTERDAY WITH MR. GREENSPAN FAILING TO PROVIDE BOND PRICES WITH A DOMINANT DIRECTION YESTERDAY SPECULATIVE AND TECHNICAL TRADERS TOOK OVER AT THE END OF TRADING PRICES OF MOST NOTES AND BONDS POSTED MODERATE LOSSES WITH SHORT TERM ISSUES LEADING THE DECLINES THE BENCHMARK THIRTY YEAR TREASURY BOND ENDED DOWN MORE THAN ONE QUARTER POINT OR MORE THAN TWO DOLLARS AND FIFTY CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO ONE HUNDRED AND FOUR THIRTY SECONDS ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO SIX POINT TWO THREE PERCENT FROM SIX POINT TWO ONE PERCENT ON FRIDAY MEANWHILE THE PROVINCE OF QUEBEC SURPRISED MANY IN THE CORPORATE BOND MARKET BY SELLING ONE BILLION DOLLARS OF THIRTY YEAR YANKEE BONDS YANKEE BONDS ARE SECURITIES SOLD BY FOREIGN ISSUERS IN THE U. S. MR. GREENSPAN TESTIFYING BEFORE THE JOINT ECONOMIC COMMITTEE OF CONGRESS SAID THAT THE ELEMENTS OF ECONOMIC EXPANSION ARE QUOTE INCREASINGLY WELL ENTRENCHED QUOTE WHILE INFLATION HAS REMAINED CONTAINED HE WENT ON TO WARN THAT DESPITE CONTINUED MODERATE INFLATION MONETARY POLICY MUST NOT OVERSTAY ACCOMMODATION ADDING THAT REAL SHORT TERM INTEREST RATES ARE ABNORMALLY LOW AND UNLESS THE ECONOMY WEAKENS SEVERELY IN THE NEAR TERM WE WILL NEED TO MOVE THEM TO A MORE NEUTRAL STANCE IN ADDITION MR. GREENSPAN INDICATED THE FED MUST ACT BEFORE INFLATION PRESSURES BECOME A PROBLEM ACCORDING TO ANALYSTS THE FED CHAIRMAN ONCE AGAIN MADE IT CLEAR THE NEXT MOVE WILL BE TO RAISE INTEREST RATES THEY ADD HOWEVER THE TIMING OF ANY MOVE IS STILL UP IN THE AIR INVESTORS MEANWHILE CONTINUED TO BET THAT THERE IS LITTLE REASON TO FEAR A RISE IN SHORT TERM RATES BEFORE LATE MARCH AT THE EARLIEST FRANK RICCARDI A SENIOR VICE PRESIDENT AT SOCIETY ASSET MANAGEMENT SAID MR. GREENSPAN'S REMARKS MERELY REINFORCED WHAT THE MARKET HAD ALREADY WIDELY BELIEVED HE WAS JUST CONFIRMING WHAT WE'VE HEARD ELSEWHERE FOR THE LAST THREE MONTHS MR. RICCARDI SAID WE HAVEN'T CHANGED ANYTHING BASED ON THIS TRADERS ALSO WERE RELUCTANT TO GET TOO EXCITED BY MR. GREENSPAN'S WARNINGS THE MARKET HAS GOTTEN BURNED TOO MANY TIMES BETTING ON A FED TIGHTENING THEY SAID YOU'RE GOING TO HAVE TO SEE THE WHITES OF THEIR EYES SAID MARCELLO FRUSTACI A TRADER AT DAIWA SECURITIES AMERICA THEN YOU'LL GET THE APPROPRIATE REACTION BUT ROBERT GIORDANO DIRECTOR OF ECONOMIC RESEARCH AT GOLDMAN SACHS SAID ELEMENTS OF GREENSPAN'S TESTIMONY RAISED THE RISK OF AN EARLIER THAN EXPECTED TIGHTENING IN PARTICULAR MR. GIORDANO POINTED TO STATEMENTS INDICATING GREATER CONFIDENCE IN THE STRENGTH OF THE ECONOMY QUOTE THE PACE OF FOURTH QUARTER GROWTH ALTHOUGH NOT LIKELY TO BE TOTALLY SUSTAINED COULD CARRY ON LONGER INTO THE NEW YEAR THAN HAS GENERALLY BEEN ASSUMED BOTH AT THE FED AND BY THE MARKET QUOTE MR. GIORDANO SAID AS A RESULT THE RISK OF AN EARLIER TIGHTENING HAS GONE UP PRICES OF TREASURY NOTES AND BONDS INITIALLY DID RESPOND TO MR. GREENSPAN'S COMMENTS ISSUES MATURING IN TWO YEARS AND UNDER WHICH WOULD BE MOST AFFECTED BY A FED TIGHTENING SANK THROUGH MIDDAY AMONG LONGER ISSUES HOWEVER TRADERS WERE ENCOURAGED BY MR. GREENSPAN'S TOUGH TALK ABOUT INFLATION AND PUSHED PRICES HIGHER THERE WAS LITTLE FOLLOW THROUGH BUYING OR SELLING HOWEVER AS A RESULT SPECULATIVE AND TECHNICAL TRADERS TOOK OVER AND SENT PRICES GRADUALLY LOWER DURING THE AFTERNOON THE MARKET JUST FADED WITH THE SHORT END GETTING THE BRUNT OF THE SELLING FROM THE STREET SAID THE DAIWA TRADER THE DAY'S ECONOMIC NEWS HAD LITTLE IMPACT ON TRADING THE COMMERCE DEPARTMENT REPORTED THAT PERSONAL INCOME ROSE ZERO POINT SIX PERCENT DURING DECEMBER WHILE PERSONAL SPENDING ROSE ZERO POINT FIVE PERCENT BOTH INCREASES WERE IN LINE WITH MARKET EXPECTATIONS THE PURCHASING MANAGERS' ASSOCIATION OF CHICAGO REPORTED THAT ITS INDEX OF LOCAL BUSINESS ACTIVITY EDGED DOWN TO FIFTY NINE POINT SIX IN JANUARY FROM SIXTY TWO POINT TWO IN DECEMBER A READING ABOVE FIFTY ON THE CHICAGO PURCHASER'S INDEX REFLECTS EXPANDING MANUFACTURING ACTIVITY IN THE AREA THE MARKET NOW TURNS ITS ATTENTION TO THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORT SCHEDULED TO BE RELEASED TODAY MOST ANALYSTS BELIEVE THE ASSOCIATION'S INDEX WILL SLIP FROM THE FIFTY SEVEN POINT ONE READING IT POSTED IN DECEMBER TRADERS ARE ALSO ALREADY LOOKING AHEAD TO FRIDAY'S JANUARY EMPLOYMENT REPORT WALL STREET IS LOOKING FOR A RISE IN NONFARM PAYROLL EMPLOYMENT OF ABOUT TWO HUNDRED THOUSAND WHICH WOULD FOLLOW THE ONE HUNDRED EIGHTY THREE THOUSAND GAIN CHALKED UP IN DECEMBER 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 THREE HUNDRED SIXTY DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A THREE HUNDRED SIXTY FIVE DAY YEAR BOTH ISSUES ARE DATED FEBRUARY THIRD THE THIRTEEN WEEK BILLS MATURE MAY FIFTH NINETEEN NINETY FOUR AND THE TWENTY SIX WEEK BILLS MATURE AUGUST FOURTH NINETEEN NINETY FOUR CANADIAN ISSUERS CONTINUED TO DOMINATE THE CORPORATE BOND MARKET YESTERDAY AS THE PROVINCE OF QUEBEC SOLD ONE BILLION DOLLARS OF NONCALLABLE THIRTY YEAR YANKEE BONDS THE PROVINCE OF QUEBEC SOLD SEVEN POINT ONE TWO FIVE PERCENT COUPON BONDS AT NINETY NINE POINT FOUR EIGHT FIVE TO YIELD SEVEN POINT ONE SIX SEVEN PERCENT ZERO POINT EIGHT TWO PERCENTAGE POINT ABOVE THE THIRTY YEAR U. S. TREASURY BOND THE BONDS WERE SOLD THROUGH LEAD MANAGER MERRILL LYNCH PROCEEDS FROM THE OFFERING WILL BE USED FOR FINANCING QUEBEC'S NINETEEN NINETY FOUR TO NINETY FIVE BUDGET SOME SYNDICATE OFFICIALS EXPRESSED SURPRISE THAT AN OFFERING THAT LARGE COULD BE BROUGHT TO THE MARKET WITHOUT ADVANCE NOTICE HOWEVER THEY CALLED QUEBEC'S YANKEE OFFERING A SUCCESSFUL TRANSACTION TO MOVE ONE BILLION DOLLARS WORTH OF BONDS AT LUNCHTIME ON A MONDAY WAS PRETTY IMPRESSIVE SAID JAMES B. QUIGLEY MANAGING DIRECTOR OF MERRILL LYNCH'S GLOBAL DEBT SYNDICATE REFERRING TO THE FACT THAT DEBT MARKETS OFTEN AREN'T IN HIGH GEAR ON THE FIRST TRADING DAY OF EACH WEEK MR. QUIGLEY ATTRIBUTED THE SUCCESS OF THE OFFERING TO THE DEARTH OF LONG TERM NEW ISSUES THIS YEAR MORE THAN FIFTY ACCOUNTS MAINLY LIFE INSURANCE COMPANIES AND PENSION FUNDS BOUGHT INTO THE OFFERING HE ADDED DESPITE QUEBEC'S DRIVE TOWARD POLITICAL SECESSION AND AN UPCOMING ELECTION IN THE SPRING INTEREST IN QUEBEC'S PAPER CONTINUES TO ATTRACT INVESTORS THE FUNDAMENTALS IN CANADA HAVE BEEN STRONG SAID ONE TRADER OF YANKEE BONDS QUOTE WE'VE BEEN THROUGH THE POLITICAL WINDMILL SO MANY TIMES THAT IT'S SOMETHING INVESTORS CAN JUSTIFY BECAUSE THERE'S SO MUCH LIQUIDITY QUOTE HE SAID QUEBEC'S DEBENTURES ARE RATED SINGLE A ONE BY MOODY'S INVESTORS SERVICE AND SINGLE A PLUS BY STANDARD AND POOR'S OTHER CANADIAN PROVINCES SUCH AS ONTARIO HAVE COME TO MARKET IN RECENT WEEKS BUT LOOKED OUTSIDE THE U. S. MARKET TO SELL DEBT THEY ARE NOT CHOOSING U. S. DOLLAR BONDS THE TRADER SAID OTHER NEW BOND OFFERINGS YESTERDAY CAME FROM BELL ATLANTIC CORPORATION'S BELL ATLANTIC NEW JERSEY A. N. Z. BANKING GROUP LIMITED AND U. S. X. CORPORATION TRADING IN THE SECONDARY MARKETS WAS LIGHT PRICES IN THE INVESTMENT GRADE MARKET WERE DOWN SLIGHTLY TRADING IN THE JUNK BOND MARKET WAS EXTREMELY LIGHT WITH PRICES UNCHANGED IN ANOTHER YANKEE OFFERING A. N. Z. BANKING GROUP AN AUSTRALIAN BASED BANK SOLD TEN YEAR SUBORDINATED NOTES THE SIX POINT TWO FIVE PERCENT COUPON NOTES WERE PRICED AT NINETY NINE POINT SEVEN OH FIVE TO YIELD SIX POINT TWO NINE PERCENT AND ARE RATED SINGLE A TWO BY MOODY'S AND SINGLE A BY S. AND P. THE NONCALLABLE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS MUNICIPAL BONDS KEPT THEIR STRONG TONE YESTERDAY DESPITE THE TREASURY BOND MARKET'S SLIP AND THEY WERE GENERALLY UNCHANGED TO ONE QUARTER POINT HIGHER AT THE CLOSE WHEN THE DAY'S SLOW DEALINGS FINISHED THE REEDY CREEK IMPROVEMENT DISTRICT FLORIDA FIVE POINT OH OH PERCENT BONDS DUE TWO THOUSAND NINETEEN WERE UNCHANGED AT NINETY SIX AND ONE HALF YIELDING FIVE POINT TWO THREE PERCENT THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S FIVE POINT TWO FIVE PERCENT BONDS DUE TWO THOUSAND FOURTEEN WERE ONE QUARTER HIGHER AT NINETY NINE AND FIVE EIGHTHS YIELDING FIVE POINT TWO THREE PERCENT MARKET PARTICIPANTS ARE AWAITING PRICING OF SEVERAL LARGE ISSUES THIS WEEK AMONG TRANSACTIONS EXPECTED TODAY A BEAR STEARNS GROUP WILL PRICE THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY'S SIX HUNDRED SIXTY FIVE MILLION DOLLAR GENERAL PURPOSE REVENUE BONDS ALSO BIDS WILL BE TAKEN FOR THE LOS ANGELES DEPARTMENT OF WATER AND POWER'S TWO HUNDRED SEVENTY SEVEN MILLION DOLLARS NINETEEN NINETY FOUR ELECTRIC PLANT REVENUE AND REVENUE REFUNDING BONDS AND GWINNETT COUNTY SCHOOL DISTRICT GEORGIA ONE HUNDRED FORTY ONE POINT FIVE MILLION DOLLARS IMPROVEMENT BONDS THERE WILL BE FAIRLY GOOD DEMAND IF THE BONDS ARE PRICED ATTRACTIVELY SAID A NEW YORK MUNI SPECIALIST LAST WEEK ISSUANCE SLOWED AND MUNI PRICES CLIMBED PRETTY STEADILY ALTHOUGH PRICES HELD UP WELL THIS SESSION MARKET PARTICIPANTS WERE RELUCTANT TO READ A LOT INTO THE DAY'S PRICE ACTION BECAUSE TRADING WAS SO SLOW BARELY A YEAR AFTER THEY WERE DISMISSED AS RETAIL'S RELICS OLD LINE COMPUTER DEALERS ARE BACK ONCE WRITTEN OFF AMID DISMAL EARNINGS AND WEAK SHOWINGS FROM THE BIG NAME BRANDS THEY CARRY TRADITIONAL COMPUTER DEALERS FROM SMALL STOREFRONT OPERATIONS TO NATIONAL DISTRIBUTORS WITH ARMIES OF SALESPEOPLE HAVE IN RECENT MONTHS BECOME SOME OF THE BIGGEST WINNERS IN THE PERSONAL COMPUTER WARS ANALYSTS SAY THE REVIVAL COMES DESPITE THE RECENT SUCCESS OF COMPUTER SUPERSTORES WHICH HAVE DOMINATED THE WILDLY GROWING HOME P. C. MARKET MANY ANALYSTS PREDICTED THAT THE SUPERSTORES ALONG WITH MAIL ORDER VENDORS AND GENERAL INTEREST RETAILERS SUCH AS DEPARTMENT STORES AND PRICE CLUBS WOULD KILL OFF TRADITIONAL DEALERS AS CONSUMERS OF ALL TYPES FLOCKED TO THE LOWER PRICES OF THE NO FRILLS COMPETITION IN SOME RESPECTS THOSE PREDICTIONS WERE RIGHT HUNDREDS OF INDEPENDENT COMPUTER DEALERS HAVE GONE OUT OF BUSINESS WHILE CERTAIN CHAINS SUCH AS BIZMART INCORPORATED AND BUSINESSLAND INCORPORATED HAVE STUMBLED AND THE SUPERSTORE HAS CEMENTED ITS POSITION AS THE FAVORITE SHOPPING DESTINATION AMONG HOME COMPUTER CONSUMERS AND SMALL BUSINESSES SEEKING A HANDFUL OF NEW MACHINES BUT NONE OF THAT HAS AFFECTED THE THOUSANDS OF LARGE AND MIDSIZE BUSINESSES THAT BUY CRATELOADS OF NEW COMPUTERS TO REPLACE AGING P. C.S QUOTE THERE'S A LARGE CORPORATE MARKET AND A LARGE HOME MARKET AND THEY SHOP IN DIFFERENT PLACES QUOTE SAYS LIZ BUYER AN ANALYST AT T. ROWE PRICE IN BALTIMORE AFTER A PERIOD OF SEEKING OUT MANUFACTURERS OF HIGH QUALITY CLONES THE BIGGEST CUSTOMERS ARE ONCE AGAIN BUYING FROM TRADITIONAL DEALERS WHOSE MAINSTAY ARE BLUE CHIP MANUFACTURERS SUCH AS INTERNATIONAL BUSINESS MACHINES CORPORATION AND COMPAQ COMPUTER CORPORATION VICTORS IN THE RECENT COMPUTER PRICE WARS THESE RETAILERS HAVE BECOME A PROXY FOR THE BRAND NAMES ROBERT ANASTASI AN ANALYST AT SECURITIES FIRM ROBINSON HUMPHREY IN ATLANTA SAYS OF THE DEALERS THE STUFF THESE GUYS ARE SELLING IS SUDDENLY IN DEMAND IN THE THIRD QUARTER FOR EXAMPLE OPERATING PROFIT AT MARKET LEADER INTELLIGENT ELECTRONICS INCORPORATED BASED IN EXTON PENNSYLVANIA DOUBLED AND NET INCOME QUINTUPLED AT MICROAGE INCORPORATED OF TEMPE ARIZONA THE DEALERS' RETURN TO PROSPERITY HAS COME FROM MORE THAN SIMPLY PUSHING BOXES OF P. C.S MOST DEALERS ARE COMPLETELY TRANSFORMING THEIR BUSINESSES AT COMPUTERLAND CORPORATION ONCE THE GRANDDADDY OF COMPUTER RETAILING OFFICIALS HAVE LARGELY ABANDONED THE COMPANY'S STOREFRONT OPERATIONS THE REVAMPING COMPLETE WITH A NAME CHANGE DUE IN THE NEXT MONTH HAS TURNED THE CLOSELY HELD COMPANY INTO A DISTRIBUTOR WITH A TECHNICAL DIVISION THAT DOES A BOOMING BUSINESS INSTALLING P. C.S AND P. C. NETWORKS AND TRAINING COMPANIES HOW TO USE THEM EDWARD ANDERSON PRESIDENT OF COMPUCOM SYSTEMS INCORPORATED WHICH IS RUN SIMILARLY AND HAS SEEN ITS SHARES JUMP EIGHTY ONE PERCENT OVER THE PAST YEAR SAYS MANY OF THE NATIONAL CHAINS HAVE BORROWED SOME OF THE TACTICS OF MAIL ORDER VENDORS SUCH AS DELL COMPUTER CORPORATION DELIVERING ADVANCED SYSTEMS TO BIG CORPORATE CUSTOMERS THAT CALL A TOLL FREE TELEPHONE NUMBER THE DEALERS' ADVANTAGE OVER DELL IS THAT THEY CAN OFFER MANY DIFFERENT BRANDS OF P. C.S AND CAN DELIVER THE TECHNICAL EXPERTISE TO HOOK UP THE SYSTEMS AND MAKE THEM WORK IT'S NOT THAT CUSTOMERS LIKE US BETTER AS PEOPLE MR. ANDERSON SAYS IT'S THAT WE MAKE THEIR LIFE EASIER FOR MOST DEALERS THE SERVICE SEGMENT HAS BECOME THEIR FASTEST GROWING NICHE AS COMPANIES TRY TO MOVE FROM LARGE MAINFRAME SYSTEMS TO NETWORKS OF P. C.S COMPUCOM FOR INSTANCE CAN NOW RUN COMPANIES' COMPUTER NETWORKS VIA A SOPHISTICATED MONITORING SYSTEM AT THE COMPANY'S DALLAS HEADQUARTERS THERE USED TO BE AN UNDERLYING ASSUMPTION THAT TECHNOLOGY ALL OF A SUDDEN BECAME SIMPLE TO USE SAYS ALAN P. HALD VICE CHAIRMAN AND CO FOUNDER OF MICROAGE QUOTE IN FACT IT'S COMPLEX AS HELL QUOTE ANALYSTS SAY THIS TECHNOLOGICAL COMPLEXITY HAS CONTRIBUTED TO PROVING THE DEATH OF THE DEALER THEORY TO BE DEAD WRONG PARTICULARLY DUBIOUS THEY SAY IS THE ASSERTION THAT BIG COMPANIES WITH THEIR LARGE COMPLEX NETWORKS AND COMPLICATED SOFTWARE WOULD TURN AWAY FROM A LONGTIME DEALER WHO HAS HELPED THEM ALONG SUCH A SHIFT WOULD ALMOST HAVE REQUIRED A PURCHASING MANAGER FROM SAY FORD MOTOR COMPANY TO DRIVE OUT TO A SUPERSTORE LOAD P. C.S INTO HIS TRUNK AND HAUL THEM INTO A FREIGHT ELEVATOR FOR HIS BUDDIES IN ACCOUNTING THE CONVENTIONAL WISDOM IS JUST STUPID SAYS PETER J. SIRIS AN ANALYST AT U. B. S. SECURITIES IN NEW YORK ALAN BUSH PRESIDENT OF COMPUTER CITY SUPERSTORES A UNIT OF TANDY CORPORATION FORT WORTH TEXAS SAYS HE ISN'T WORRIED ABOUT THE RECOVERY OF MANY OF HIS OLDER COMPETITORS WE'RE NOT EXPERIENCING ANY ADDITIONAL PRESSURE AT ALL MR. BUSH SAYS WE CONTINUE TO BE ALL SMILES IN FACT MOST ANALYSTS GIVE COMPUTER CITY CREDIT FOR THE RECENT TURNAROUND AT TANDY WHICH PLANS TO BUILD TWENTY FOUR SUPERSTORES THIS YEAR AS PART OF ITS BIGGEST EXPANSION EVER MOST EXPERTS STILL AGREE THAT DEALER GROWTH IS BOUND TO SLOW THE CONSUMER P. C. RETAIL BUSINESS WILL REMAIN THE P. C. INDUSTRY'S FASTEST GROWING SEGMENT JUMPING FROM NINETEEN PERCENT OF TOTAL P. C. SALES LAST YEAR TO NEARLY TWENTY THREE PERCENT BY NINETEEN NINETY SEVEN BY COMPARISON INTERNATIONAL DATA CORPORATION A COMPUTER MARKET RESEARCH CONCERN IN FRAMINGHAM MASSACHUSETTS PREDICTS TRADITIONAL DEALERS WILL ACCOUNT FOR THIRTY SIX PERCENT OF THE TOTAL P. C. PIE BY NINETEEN NINETY SEVEN DOWN FROM FORTY FOUR PERCENT LAST YEAR MOST ANALYSTS SEE THE MARKET BECOMING INCREASINGLY SEGMENTED WITH HOME USERS AND SMALL BUSINESSES TURNING TO THE SUPERSTORES LARGE AND MIDSIZE BUSINESSES CONTINUING TO DEPEND ON THE BIG DEALERS AND THE FORTUNE FIVE HUNDRED COMPANIES TEAMING UP WITH MONOLITHS LIKE ELECTRONIC DATA SYSTEMS CORPORATION TO RUN ALL THEIR COMPUTER OPERATIONS MS. BUYER OF T. ROWE PRICE CAUTIONS THAT POSSIBLE PITFALLS REMAIN EVEN WITH DEALERS' RECENT SUCCESS ANOTHER DIP IN THE FORTUNES OF I. B. M. AND COMPAQ FOR INSTANCE COULD AGAIN SEND MANY OF THE DEALER CHAINS INTO A FUNK FOR NOW MANY OF THE DEALERS ARE REVELING IN THE SIMPLE FACT THAT THEY'RE ALIVE IT USED TO BE A FOREGONE CONCLUSION THAT DELL AND COMPUSA WERE GOING TO WIPE PEOPLE LIKE US OUT MR. ANDERSON SAYS NOW LOOK WHO IS DOING THE SOUL SEARCHING THE ANTITRUST COPS ARE CALLING IN REINFORCEMENTS TO BOLSTER THE RANKS OF ITS ANTITRUST DIVISION THE JUSTICE DEPARTMENT HAS LAUNCHED A QUIET BUT AGGRESSIVE HIRING DRIVE ITS QUARRY EXPERIENCED TRIAL LAWYERS FROM THE PRIVATE SECTOR AMONG THE NEW HIRES IS SAMUEL R. MILLER OF THE POWERFUL SAN FRANCISCO FIRM OF MORRISON AND FOERSTER AND CHAIRMAN OF THE AMERICAN BAR ASSOCIATION'S ANTITRUST LITIGATION COMMITTEE HIS ASSIGNMENT TO HELP SPEARHEAD THE JUSTICE DEPARTMENT'S INVESTIGATION OF MICROSOFT CORPORATION THE NATION'S LARGEST SOFTWARE MAKER THE IDEA OF RECRUITING SEASONED TRIAL ATTORNEYS FROM PRIVATE LAW FIRMS TO GOVERNMENT JOBS ISN'T UNPRECEDENTED OF COURSE ATTORNEYS ROUTINELY ROTATE IN AND OUT OF GOVERNMENT JOBS BUT RETAINING WHAT ARE ESSENTIALLY HIRED GUNS TO WORK ON PARTICULAR CASES IS RARE AND DIFFICULT THE MOST THAT ANY OF THE NEW HIRES WILL MAKE IS NINETY THREE THOUSAND FIVE HUNDRED DOLLARS A YEAR JUST SLIGHTLY MORE THAN WHAT A YOUNG LAWYER MIGHT MAKE STARTING OUT AT A MAJOR NEW YORK FIRM THE EXPERIENCE FACTOR HAS LONG BEEN A STICKY ISSUE IN THE ANTITRUST DIVISION IN THE NINETEEN SEVENTIES THE DIVISION SOUGHT A WAIVER FROM THE OFFICE OF MANAGEMENT AND BUDGET SO IT COULD PAY ATTORNEYS ABOVE GOVERNMENT SCALE IT DIDN'T GET ONE AND HAD TO CONTINUE HIRING YOUNG LAWYERS TO FIGHT EVEN THE BIGGEST CASES QUOTE WE HAD RELATIVELY INEXPERIENCED YOUNG LAWYERS RUNNING UP AGAINST VERY HIGH QUALITY OPPOSITION AND WORKING AT A DISADVANTAGE QUOTE SAYS JOE SIMS A FORMER DEPUTY ASSISTANT ATTORNEY GENERAL FOR ANTITRUST IN THE CARTER ADMINISTRATION WE WERE TRYING TO FIX THAT PROBLEM WE DIDN'T FIX THAT PROBLEM MR. MILLER WILL IN EFFECT BE FLOATING SENIOR LITIGATION COUNSEL ALONG WITH MAX L. GILLAM THE SENIOR TRIAL LAWYER AT FIVE HUNDRED LAWYER LATHAM AND WATKINS IN LOS ANGELES AND K. CRAIG WILDFANG A MINNEAPOLIS ATTORNEY KNOWN FOR REPRESENTING PLAINTIFFS IN ANTITRUST CASES AGAINST THE WORKERS' COMPENSATION INSURANCE INDUSTRY ALTHOUGH THEY'LL BE WORKING FULL TIME FOR THE JUSTICE DEPARTMENT MESSRS MILLER AND GILLAM WILL BE ALLOWED TO MAINTAIN OFFICES IN SAN FRANCISCO AND LOS ANGELES RESPECTIVELY AMONG OTHER CASES THE NEW LAWYERS MAY WORK ON THE DEPARTMENT'S REVIEW OF THE PROPOSED MERGER OF TELE COMMUNICATIONS INCORPORATED AND BELL ATLANTIC CORPORATION THE DEAL IS I WOULD GO WHERE THE ACTION IS SAYS MR. GILLAM THAT IS A NIFTY JOB FOR A TRIAL LAWYER ANNE K. BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST HAS LURED EXPERIENCED ATTORNEYS TO THE JUSTICE DEPARTMENT WITH PROMISES THAT THEY WILL HAVE UNUSUAL LATITUDE IN HELPING TO IDENTIFY AND TRY MAJOR CASES LAST FALL SHE RECEIVED CONGRESSIONAL APPROVAL TO FUND THE ADDITIONAL SALARIES IT IS THE FIRST TIME THE DIVISION HAS EVER HAD THE RESOURCES AVAILABLE TO ENGAGE IN A CONCERTED HIRING PROGRAM SAYS STEVEN SUNSHINE A DEPUTY ASSISTANT SECRETARY TO MS. BINGAMAN ANTITRUST WAS AMONG THE HARDEST HIT AREAS OF THE JUSTICE DEPARTMENT DURING THE REAGAN AND BUSH ADMINISTRATIONS WHEN THE RANKS OF LAWYERS ECONOMISTS AND STAFF WITHIN THE DIVISION WERE GREATLY THINNED BECAUSE OF THE PREVAILING FREE MARKET ATTITUDE TODAY THE DIVISION EMPLOYS ABOUT SIX HUNDRED PEOPLE DOWN FROM ROUGHLY ONE THOUSAND IN NINETEEN EIGHTY WHEN MR. REAGAN TOOK OFFICE MS. BINGAMAN'S HIRING PUSH REFLECTS AN EFFORT TO REVERSE THAT TREND ASIDE FROM HIRING UP TO FORTY NEW ATTORNEYS THE DIVISION IS ADDING A COMPARABLE NUMBER OF PARALEGALS ANOTHER SIGNAL THAT THE DEPARTMENT IS GEARING UP TO BRING SOME MAJOR CASES PRIVATE ATTORNEYS SAY QUOTE SHE CERTAINLY WANTS TO MAKE SURE THAT SHE CAN HAVE A HIGH DEGREE OF CONFIDENCE IN HER TRIAL LAWYERS QUOTE SAYS JACK BROWN A PHOENIX ATTORNEY WHO USED TO PRACTICE LAW IN THE SAME FIRM AS MS. BINGAMAN REMEMBER THEY HAVEN'T DONE ANY SUBSTANTIAL TRIAL WORK THERE FOR A LONG TIME MR. MILLER ASSIGNED TO THE MICROSOFT TEAM HAS ALREADY DIVED INTO HIS WORK BILL NEUKOM MICROSOFT'S VICE PRESIDENT LAW AND CORPORATE AFFAIRS SAYS HE HAS HAD A PRELIMINARY DISCUSSION WITH MR. MILLER ABOUT THE STATUS OF THE INVESTIGATION WE WOULD HOPE AT THE END OF THE DAY THAT HE WOULD AGREE WITH US THAT THE COMPANY IS DOING BUSINESS IN A PERFECTLY LEGAL AND COMPETITIVE WAY MR. NEUKOM SAYS THE INVESTIGATION IS BELIEVED TO FOCUS ON WHETHER MICROSOFT USED ITS POSITION AS THE DOMINANT SUPPLIER OF OPERATING SYSTEM SOFTWARE FOR PERSONAL COMPUTERS TO ILLEGALLY THWART COMPETITION MR. MILLER DECLINES TO COMMENT ON THE CASE HE SAYS THAT WHILE HE EXPECTS THE MICROSOFT CASE TO TAKE UP MOST OF HIS TIME FOR THE FORESEEABLE FUTURE HE EXPECTS HE WILL EVENTUALLY WORK ON OTHER MATTERS THERE'S A LOT TO DO HE SAYS MANY ATTORNEYS SAY THE NEW HIRES' TRIAL BACKGROUNDS ARE JUST WHAT THE ANTITRUST DOCTORS ORDERED I THINK THAT WHEN A LAWYER DEFENDING A COMPANY LOOKS ACROSS THE ROOM AND SEES A SAM MILLER OR A MAX GILLAM THEY ARE GOING TO THINK SIX TIMES ABOUT WHAT THEY ARE GOING TO DO IN THIS CASE SAYS JAMES BROSNAHAN A PARTNER OF MR. MILLER'S AT MORRISON AND FOERSTER AN INDIVIDUAL WHO FILES A CLAIM WITH A LOCAL ANTIBIAS AGENCY DOESN'T NECESSARILY FORFEIT HIS RIGHT TO PRIVACY A FEDERAL APPEALS COURT RULED THE CASE INVOLVED A FORMER PAN AM EMPLOYEE WHO FILED A COMPLAINT WITH THE CITY OF NEW YORK COMMISSION ON HUMAN RIGHTS ALLEGING THAT DELTA AIRLINES AFTER ACQUIRING SOME OF PAN AM'S ASSETS FAILED TO EMPLOY HIM BECAUSE HE WAS A GAY MALE AND BECAUSE OF SUSPICION CORRECT AS IT TURNED OUT THAT HE WAS H. I. V. POSITIVE AFTER THE PARTIES ENTERED INTO A SETTLEMENT RESULTING IN THE MAN'S HIRING THE CITY ISSUED A NEWS RELEASE IN AUGUST NINETEEN NINETY TWO DISCLOSING THE TERMS OF THE DEAL ALTHOUGH THE STATEMENT DIDN'T EXPRESSLY IDENTIFY HIM BY NAME THE MAN ALLEGED THAT IT CONTAINED SUFFICIENT IDENTIFYING INFORMATION TO HAVE VIOLATED HIS CONSTITUTIONAL RIGHT TO PRIVACY THE TRIAL COURT JUDGE DISMISSED THE MAN'S INVASION OF PRIVACY SUIT AGAINST THE CITY DETERMINING THAT HE HAD WAIVED HIS PRIVACY RIGHT BY BRINGING THE CLAIM TO THE COMMISSION WHICH WAS REQUIRED BY STATUTE TO DISCLOSE ALL SETTLEMENTS IN REINSTATING THE COMPLAINT THE SECOND U. S. CIRCUIT COURT OF APPEALS NEW YORK FOUND THAT THE MAN RETAINED HIS RIGHT TO CONFIDENTIALITY AND THAT THE STATUTE IN QUESTION DIDN'T AUTOMATICALLY MAKE THE MEDICAL INFORMATION A MATTER OF PUBLIC RECORD TO RULE OTHERWISE THE COURT WROTE WOULD BE TO UNDERMINE ENTIRELY THE PURPOSE OF THE COMMISSION ON HUMAN RIGHTS AND TO HEEDLESSLY MAKE PUBLIC THAT WHICH IS OFTEN SURELY INTENDED TO REMAIN PRIVATE IN RE JOHN DOE VERSUS THE CITY OF NEW YORK ET AL. NINETY THREE TO SEVEN THOUSAND FIVE HUNDRED NINETY SIX CHICAGO MERGER CORBOY AND DEMETRIO ONE OF THE NATION'S PREMIER PERSONAL INJURY LAW FIRMS IS MERGING WITH ROBERT A. CLIFFORD AND ASSOCIATES THE COMBINED STAFF OF THIRTY LAWYERS WILL CONCENTRATE ON AVIATION MEDICAL NEGLIGENCE PRODUCT LIABILITY AND OTHER PERSONAL INJURY CASES CORBOY AND DEMETRIO'S LEAD LAWYER IS PHILIP H. CORBOY SIXTY NINE YEARS OLD CO CHAIRMAN OF THE AMERICAN BAR ASSOCIATION'S LITIGATION SECTION MR. CLIFFORD FORTY TWO YEARS OLD IS A FORMER ASSOCIATE OF THE FIRM WHO SPLIT OFF IN NINETEEN EIGHTY FOUR TO START HIS OWN SHOP THE NEW FIRM WILL BE CALLED CORBOY DEMETRIO CLIFFORD P. C. MARGARET A. JACOBS CONTRIBUTED TO THIS ARTICLE HITACHI LIMITED EXPECTS ITS EARNINGS TO BEGIN IMPROVING IN THE SIX MONTHS ENDING MARCH THIRTY FIRST REVERSING TWO YEARS OF DECLINING PRETAX PROFIT IN AN INTERVIEW DIRECTOR YOSHIRO KUWATA SAID THAT QUOTE WE THINK OUR EARNINGS HAVE HIT BOTTOM WE EXPECT SOME IMPROVEMENT IN THE NEXT HALF AND IN THE FUTURE FOR THE YEAR ENDED MARCH THIRTY FIRST NINETEEN NINETY THREE THE JAPANESE ELECTRONICS AND HEAVY POWER EQUIPMENT MAKER'S CONSOLIDATED SALES FELL TWO POINT NINE PERCENT TO SEVEN POINT FIVE THREE SIX TRILLION YEN SIXTY EIGHT POINT FOUR EIGHT BILLION DOLLARS AND GROUP PRETAX PROFIT SLID THIRTY SEVEN PERCENT TO TWO HUNDRED THIRTY FOUR POINT SEVEN FOUR BILLION YEN WHILE MR. KUWATA WOULDN'T DISCLOSE SPECIFIC FORECASTS HE SAID THE COMPANY IS BEGINNING TO SEE BENEFITS FROM A RATIONALIZATION PROGRAM THAT HAS EMPHASIZED TRANSFER OF PRODUCTION TO OVERSEAS LOCATIONS A STRONG YEN ERODED THE COMPETITIVENESS OF HITACHI PRODUCTS MADE IN JAPAN HITACHI CURRENTLY MAKES ROUGHLY THIRTY PERCENT OF ITS PRODUCTS OUTSIDE JAPAN THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS EIGHT PERCENT HIGH THREE AND THREE SIXTEENTHS PERCENT LOW FOUR PERCENT NEAR CLOSING BID SIX PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH FIVE PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH EIGHT PERCENT SIXTY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE OH PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FIFTY NINE DAYS THREE POINT ONE TWO PERCENT ONE HUNDRED SIXTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO OH PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT THREE OH PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE OH PERCENT THIRTY DAYS THREE POINT ONE THREE PERCENT SIXTY DAYS THREE POINT ONE FIVE PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE TWO PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT FIVE SIX PERCENT THREE MONTHS TWO POINT SIX NINE PERCENT SIX MONTHS THREE POINT OH FOUR PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH TWO PERCENT ONE MONTH THREE POINT ONE OH PERCENT THREE MONTHS THREE POINT TWO SIX PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH ONE PERCENT THIRTY DAYS THREE POINT OH TWO PERCENT SIXTY DAYS THREE POINT OH THREE PERCENT NINETY DAYS THREE POINT OH SEVEN PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE TWO PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE FIVE PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT FOUR MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND THREE EIGHTHS PERCENT SIX MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT NINE OH PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY THIRTY FIRST NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE NINE PERCENT THIRTEEN WEEKS THREE POINT ONE SIX PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT OH PERCENT SIXTY DAYS SIX POINT EIGHT SEVEN PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT SEVEN EIGHT PERCENT SIXTY DAYS SIX POINT EIGHT EIGHT PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN THREE PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS WHEN IT IS HORRIBLY IMPLACABLY COLD WHEN ICE AND SNOW COVER THE GROUND AND ARCTIC WINDS RAGE THROUGH THE BARE RUINED CHOIRS WHERE ONCE THE SWEET BIRDS SANG AND THEN FOR THE MOST PART HAD THE SENSE TO HEAD FOR WARMER CLIMES WHAT ABOUT THE BIRDS THAT STAY BEHIND WHAT BECOMES OF THE CHICKADEES THE TITMICE THE DOWNY WOODPECKERS THE SPARROWS STARLINGS AND PIGEONS THAT WINTER IN URBAN WILDLIFE PRESERVES LIKE NEW YORK'S CENTRAL PARK WHEN THE TEMPERATURES PLUNGE TO ZERO AND BELOW ARE THEY DOOMED TO FREEZE LIKE THE POOR SPARROW IN OSCAR WILDE'S FAIRY TALE QUOTE THE HAPPY PRINCE QUOTE IN REAL LIFE BIRDS HAVE REMARKABLE RESISTANCE TO COLD FAR GREATER INDEED THAN MAMMALS ACCORDING TO THE AUDUBON SOCIETY ENCYCLOPEDIA OF NORTH AMERICAN BIRDS IT MAKES SOME SENSE WHEN YOU THINK OF WHAT MANY MAMMALS OF OUR OWN SPECIES WEAR WHEN THE WEATHER TURNS WINTRY DOWN GARMENTS BIRDS OF COURSE ARE PROTECTED BY THEIR OWN NATURAL DOWN FEATHERS IN FACT ARE ONE OF NATURE'S FINEST INSULATING AGENTS THERE IS VERY LITTLE EXPOSED SKIN ON THE BODY OF A BIRD NO PROJECTING EARS OR TAIL WHERE BODY HEAT MIGHT BE DISSIPATED ONLY THE FEET AND TO SOME DEGREE THE HORNY BILL ARE VULNERABLE TO HEAT LOSS WHICH EXPLAINS WHY YOU SOMETIMES SEE A BIRD STANDING ON ONE FOOT WITH THE OTHER TUCKED INTO THE BREAST FEATHERS OR WITH HIS BILL BURIED IN A WING TO CONSERVE HEAT AS WINTER APPROACHES THE FACTOR THAT IMPELS BIRDS TO FLY SOUTH IS NOT THE COLD IT IS THE FOOD SUPPLY THE BIRDS THAT MIGRATE ARE GENERALLY INSECT EATERS AND WHEN THE WEATHER TURNS TOO COLD FOR INSECT SURVIVAL THESE BIRDS MUST MOVE TO WHERE THE FOOD IS THE BIRDS THAT STAY ARE GENERALLY SEED AND BERRY EATERS WHOSE FOOD SUPPLY REMAINS AVAILABLE ON THE GROUND OR CLINGING TO LEAFLESS BRANCHES BUT IN ORDER TO STAY ALIVE IN CONDITIONS OF EXTREME COLD THESE BIRDS MUST EAT A GREATER QUANTITY OF HIGH ENERGY FOODS THAN USUAL TO SUSTAIN THEIR NORMAL BODY TEMPERATURE WHICH FLUCTUATES BETWEEN ONE HUNDRED DEGREES AND ONE HUNDRED TWELVE KNOWLEDGEABLE BIRDWATCHERS KNOW THIS WHICH MAY AT LEAST PARTLY EXPLAIN WHY LATE ON THE MORNING OF WEDNESDAY JANUARY NINETEENTH A DAY WHEN IT SEEMED THE ENTIRE NORTHEAST WAS COVERED WITH A SHEET OF ICE AND EVERYONE ELSE IN HER RIGHT MIND WAS HUDDLING INDOORS A SMALL GROUP OF DEDICATED ORNITHOPHILES ENTERED THE DESERTED WASTES OF CENTRAL PARK TO FEED THE BIRDS THE THREE LATTER DAY SAINT FRANCISES WHO BRAVED THE SUBZERO WEATHER THAT DAY WERE NORMA COLLIN A RETIRED ART GALLERY OWNER MURRAY LIEBMAN A COLLEGE TEACHER AND CHARLES KENNEDY A HAIKU WRITER EVERY WEDNESDAY SINCE THE MIDDLE OF OCTOBER THEY AND A FEW OTHERS HAD BEEN REGULARLY STOCKING THE BIRD FEEDING STATION AT THE AZALEA POND DEEP IN THAT MAN MADE WILDERNESS KNOWN AS THE RAMBLE A WELL KNOWN CENTRAL PARK TOURIST ATTRACTION THE AZALEA POND FEATURES SEVEN HOMEMADE BIRD FEEDERS CONSTRUCTED OUT OF PLASTIC JUGS THESE ARE REGULARLY FILLED WITH SUNFLOWER SEEDS AND ATTACHED TO HIGH BRANCHES OF TREES THAT OVERHANG A PICTURESQUE STREAM CALLED THE GILL REGULATION FRISBEES SUSPENDED BETWEEN THE JUGS AND THE BRANCHES ARE GENERALLY EFFECTIVE AT DETERRING RAPACIOUS SQUIRRELS THAT MORNING THE THREE BIRD ENTHUSIASTS HAD A PARTICULAR SENSE OF URGENCY THE CITY WAS ENDURING ONE OF ITS WORST COLD WAVES EVER AND THERE WERE ALREADY REPORTS OF SOME BIRD VICTIMS A FROZEN MALLARD HAD BEEN FOUND IN THE ICE BETWEEN THE LOCH AND THE POOL ON THE WEST SIDE OF THE PARK NEAR ONE HUNDREDTH STREET AND A DEAD CANADA GOOSE AT THE NORTH SIDE OF THE RESERVOIR MOREOVER THERE WAS SOME DISQUIETING NEWS FROM THE AZALEA POND IN THE COURSE OF THAT DESPERATELY COLD WEEK SQUIRRELS HAD FINALLY INVADED THE FEEDERS CAUTIOUSLY MAKING THEIR WAY ON THE ICY PATH TO THE AZALEA POND MR. KENNEDY MR. LIEBMAN AND MS. COLLIN THE LATTER DRESSED IN FIVE LAYERS ON TOP AND FOUR LAYERS ON THE BOTTOM WERE PREPARED FOR TROUBLE BUT WHEN THEY REACHED THE FROZEN STREAM THEY WERE SHOCKED BY WHAT THEY SAW THE SQUIRRELS HAD TWISTED THE FRISBEE BAFFLES GNAWED THROUGH THE BIRD SIZED ENTRANCE HOLES IN THE JUGS EATEN ALL THE SEEDS AND IN THE PROCESS DESTROYED MOST OF THE CONTAINERS BEYOND REPAIR IN ALL THE YEARS MS. COLLIN HAD BEEN REFILLING THE FEEDERS SHE HAD NEVER SEEN QUITE SUCH A MESS SHE AND THE OTHERS HAD LUGGED A TWENTY POUND BAG OF BIRD SEED TO THE FEEDING STATION AS WELL AS A COLLAPSIBLE FIFTEEN FOOT POLE USED FOR ATTACHING THE FEEDERS TO TREE BRANCHES NOW AS THEY NUMBLY WONDERED WHETHER JUST TO DUMP THE SEEDS ON THE SNOW COVERED GROUND AND LET THE BIRDS AND SQUIRRELS FIGHT IT OUT AMONG THEMSELVES ANOTHER ANGEL OF MERCY APPEARED ON THE SPOT IT WAS GEORGE MULLER A RETIRED ELECTRICIAN THE VERY MAN WHO HAD DEVISED AND CREATED THE FEEDERS HE TOO WAS AMAZED AT THE SQUIRRELS' DEPREDATIONS IT WAS AS IF THEY HAD TOOLS MR. MULLER SAID A FEW DAYS LATER THEIR TEETH MUST BE LIKE BUZZ SAWS MR. MULLER HAD COME PREPARED MS. COLLIN HAD CALLED HIM ON MONDAY TO TELL HIM THAT THE FEEDERS WERE DAMAGED AND THIS MOVED HIM TO TAKE SWIFT ACTION HE EMPTIED OUT A GALLON JUG OF BRECK SHAMPOO HE HAD AT HOME APPROPRIATED ANOTHER LARGE PLASTIC CONTAINER HE NORMALLY USED FOR WATERING HIS PLANTS AND COMMANDEERED A THIRD FROM HIS BUILDING'S BASEMENT IN ALL THREE VESSELS HE CUT OUT BIRD ENTRANCE HOLES AT THE SIDES HE ATTACHED HOOKS TO THE TOP OF EACH THEN BECAUSE IT WAS A PAINFULLY COLD DAY HE WAITED FOR THE WEATHER TO IMPROVE BUT THE NEXT DAY WAS EVEN COLDER AND ON WEDNESDAY THE TEMPERATURE WENT DOWN TO MINUS TWO DEGREES STILL MR. MULLER FELT CERTAIN THAT THE BIRD FEEDING SQUAD WOULD BE IN THE PARK THAT DAY NO MATTER WHAT HE BUNDLED UP AND HEADED FOR THE AZALEA POND AT ABOUT ELEVEN A. M. WITH HIS THREE NEW FEEDERS AND SO IT HAPPENED THAT ON THE COLDEST DAY OF NINETEEN NINETY FOUR SO FAR MR. MULLER MR. LIEBMAN MR. KENNEDY AND MS. COLLIN FILLED THREE NEW BIRD FEEDERS TO THE BRIM WITH SUNFLOWER SEEDS AND WITH THE HELP OF A LONG POLE HOOKED THEM ON THE BRANCHES OF AN OVERHANGING CORK TREE THEN IN THE SPIRIT OF TRUE FORGIVENESS THEY SCATTERED QUITE A QUANTITY OF ADDITIONAL SEEDS ON THE GROUND FOR THE HUNGRY SQUIRRELS MS. COLLIN HAD ONE MORE TREAT PREPARED FOR THE BIRDS TWO DAYS EARLIER A FEW FRIENDS HAD THROWN A PARTY TO CELEBRATE HER SIXTY FIFTH BIRTHDAY THE HIGH POINT OF THE OCCASION WAS A CAKE DECORATED WITH A REALISTIC PICTURE OF ONE OF MS. COLLIN'S FAVORITE BIRDS A GREAT BLUE HERON THE GUESTS MERELY PECKED AT THIS AVIAN DESSERT SO A BIG CHUNK OF CAKE WAS LEFT OVER AFTER THE PARTY MS. COLLIN TOOK IT HOME WITH THE BEAUTIFUL HERON ALMOST INTACT BUT THESE WERE DESPERATE TIMES ON WEDNESDAY MORNING BEFORE SETTING OFF FOR THE PARK MS. COLLIN SCRAPED ALL THE ICING FROM THE CAKE AND STUCK IT INTO A PLASTIC BAG AT THE AZALEA POND SHE SMEARED IT ON THE DEEPLY FURROWED BARK OF THE CORK TREE THE ICING WAS MOSTLY BUTTER A HIGH ENERGY FOOD AND WITHIN MINUTES TWO DOWNY WOODPECKERS WERE WOLFING IT DOWN SO TO SPEAK THEY WERE SOON JOINED BY A MALE RED BELLIED WOODPECKER ANNOUNCING HIS ARRIVAL WITH A THROATY CHURR FINALLY A COUPLE OF TITMICE JOINED THE BELATED BIRTHDAY CELEBRATION CHICKADEES FLEW BACK AND FORTH FROM THE FEEDERS TO NEARBY BRANCHES SELF DESCRIPTIVELY CALLING CHICK A DEE DEE DEE ON THE GROUND THREE KINDS OF SPARROWS HOUSE SONG AND WHITE THROATED CHIRPED AS THEY FED ON SCATTERED BIRD SEED ALONGSIDE A CONSIDERABLE MOB OF ROCK DOVES PIGEONS THAT IS AND IN THE MIDDLE OF JANUARY DEEP IN THE HEART OF CENTRAL PARK THE BARE RUINED CHOIRS RESOUNDED WITH SWEET BIRD SONG MS. WINN IS A WRITER IN NEW YORK SUN ALLIANCE GROUP P. L. C. SAID IT IS SELLING ITS LEASEHOLD INTERESTS IN THE HARLEQUIN SHOPPING CENTER IN WATFORD NORTH OF LONDON TO CAPITAL AND COUNTIES A UNIT OF TRANSATLANTIC HOLDINGS P. L. C. THE SALE FOR ONE HUNDRED SIXTY TWO MILLION POUNDS TWO HUNDRED FORTY TWO POINT THREE MILLION DOLLARS IS TO BE COMPLETED ON FEBRUARY TWENTY EIGHTH AND REPRESENTS AN OUT OF COURT SETTLEMENT BETWEEN THE TWO PARTIES C. AND C. AND SUN ALLIANCE WERE JOINTLY INVOLVED IN THE HARLEQUIN PROJECT IN NINETEEN EIGHTY EIGHT FOLLOWING THE UNITED KINGDOM PROPERTY MARKET RECESSION THAT BEGAN IN THE LATE NINETEEN EIGHTIES C. AND C. DISPUTED THE JOINT VENTURE AGREEMENT AS THE AGREEMENT STOOD THEN C. AND C. WASN'T GETTING THE RETURNS EXPECTED FROM THE HARLEQUIN CENTER SUN REFUSED TO RENEGOTIATE THE CONTRACT AND COURT PROCEEDINGS INSTITUTED BY C. AND C. BEGAN LAST WEEK WITH THIS PURCHASE C. AND C. IS EFFECTIVELY BUYING OUT ALL OF SUN ALLIANCE'S INTERESTS IN THE VENTURE THE FUTURE OF LEGISLATION GOVERNING TELEVISION VIOLENCE IS EXPECTED TO TAKE A NEW TWIST TODAY WHEN THE BROADCAST NETWORKS AND THE CABLE T. V. INDUSTRY TELL CONGRESS THAT THEY HAVE AGREED ON A PLAN TO MONITOR THE LEVELS OF VIOLENCE ON THEIR PROGRAMS IN EXCHANGE SENATOR PAUL SIMON D. ILLINOIS A LEADER IN THE CAMPAIGN TO REDUCE VIOLENCE ON TELEVISION IS EXPECTED TO ANNOUNCE THAT HE WILL NEITHER INTRODUCE NOR SUPPORT LEGISLATION AGAINST T. V. VIOLENCE THIS YEAR THERE ARE TEN DIFFERENT BILLS ON THE TOPIC IN THE WORKS SEPARATELY THE CABLE TELEVISION INDUSTRY WITH AT LEAST ONE NOTABLE EXCEPTION ALSO WILL ANNOUNCE TODAY THAT IT HAS AGREED TO DEVELOP A RATING SYSTEM FOR ITS ENTERTAINMENT NETWORKS CABLE T. V. COMPANIES ALSO HAVE AGREED TO SUPPORT DEVELOPMENT OF A TECHNOLOGY THAT WILL LET VIEWERS BLOCK OUT SHOWS WITH A VIOLENT RATING ONE SUCH DEVICE THE SO CALLED V. CHIP HAS ALREADY BEEN PROPOSED BY REPRESENTATIVE EDWARD MARKEY D. MASSACHUSETTS WHO WILL PARTICIPATE IN THE CABLE T. V. INDUSTRY'S ANNOUNCEMENT OTHERS PARTICIPANTS INCLUDE DECKER ANSTROM PRESIDENT OF THE NATIONAL CABLE TELEVISION ASSOCIATION AND WINSTON COX CHAIRMAN OF VIACOM INCORPORATED'S SHOWTIME NETWORKS INCORPORATED WHO HAS LED THE INDUSTRY INITIATIVE THE FUTURE OF CABLE T. V.'S VIOLENCE RATINGS PLAN IS VERY MUCH IN DOUBT HOWEVER BECAUSE THE PLAN REQUIRES THAT THE BROADCAST NETWORKS AND INDEPENDENT STATIONS JOIN ANY SUCH PROGRAM BEFORE IT CAN BE IMPLEMENTED FOR THE MOST PART THE BROADCAST NETWORKS HAVE ADAMANTLY OPPOSED SUCH A SYSTEM WITH SOME EXECUTIVES ARGUING THAT IT IS THE FIRST STEP ON THE ROAD TO CENSORSHIP BROADCASTERS ALSO ARE CONCERNED THAT ADVERTISERS WILL FLEE FROM SHOWS THAT ARE LABELED VIOLENT ALTHOUGH THE NETWORKS ALSO CONTEND THAT THEY HAVE FEW SHOWS THAT WOULD EVEN GET SUCH A RATING QUOTE WE REALLY DO NEED BROADCASTERS TO GET BEHIND A RATINGS SYSTEM QUOTE SAID MR. COX WE CAN ONLY BE EFFECTIVE IF EVERYBODY IS ON BOARD HE ADDED IF WE DON'T DO SOMETHING TOWARDS A SELF POLICING EFFORT WE'LL BE LEGISLATED AND THE CONSQUENCE WILL BE MORE SEVERE FROM A PRACTICAL POINT YOU'RE BETTER OFF DOING IT TO YOURSELF THE CABLE T. V. RATINGS PLAN IS BEING PROPOSED OVER THE OBJECTIONS OF U. S. A. NETWORK AN ADVERTISER SUPPORTED NETWORK OWNED BY PARAMOUNT COMMUNICATIONS INCORPORATED AND MATSUSHITA ELECTRIC INDUSTRIAL COMPANY'S M. C. A. INCORPORATED U. S. A. NETWORK HAS CITED SIMILAR CONCERNS OVER CENSORSHIP IN ADDITION THERE IS A QUESTION AS TO WHAT KIND OF TECHNOLOGY THE CABLE T. V. INDUSTRY SUPPORTS SOME IN THE INDUSTRY OPPOSE REPRESENTATIVE MARKEY'S PROPOSED SYSTEM WHICH WOULD AUTOMATICALLY BLOCK OUT SHOWS RATED VIOLENT OTHER PROPOSALS WOULD ALLOW VIEWERS TO SELECT THE SHOWS THEY WISH TO BLOCK WE DON'T SUPPORT LEGISLATION SHOWTIME'S MR. COX SAID BUT WE CERTAINLY SUPPORT VIEWER DISCRETION TECHNOLOGY WE WANT PEOPLE TO CONTROL WHAT TYPE OF PROGRAMMING IS COMING INTO THEIR HOUSE QUOTE THE MONITORING SYSTEM AGREED TO BY C. B. S. INCORPORATED CAPITAL CITIES SLASH A. B. C. INCORPORATED GENERAL ELECTRIC COMPANY'S N. B. C. AND NEWS CORPORATION'S FOX WOULD PROVIDE QUALITATIVE ANALYSIS OF THE NETWORKS' PROGRAMMING WHICH WOULD BE PERFORMED BY AN OUTSIDE MONITOR AND REPORTED TO THE PUBLIC ANNUALLY IT IS EXPECTED TO BE UP AND RUNNING NO LATER THAN THE BEGINNING OF THIS YEAR'S FALL SEASON IN RECENT WEEKS TELEVISION PROGRAMMERS HAVE FACED INCREASED PRESSURE TO DEVELOP A VOLUNTARY PLAN ADDRESSING T. V. VIOLENCE THE CORPORATION FOR PUBLIC BROADCASTING TODAY WILL RELEASE RESULTS OF A STUDY IN WHICH EIGHTY TWO PERCENT OF THE ONE THOUSAND PEOPLE POLLED SAID THEY THINK T. V. PROGRAMMING IS TOO VIOLENT WITH THE BROADCAST NETWORKS COMING IN FOR CRITICISM FROM SEVENTY PERCENT OF RESPONDENTS CABLE T. V. NETWORKS FROM FIFTY SEVEN PERCENT AND PUBLIC TELEVISION FROM JUST FOURTEEN PERCENT AT LAST WEEK'S CONVENTION OF THE NATIONAL ASSOCIATION OF TELEVISION PROGRAM EXECUTIVES IN MIAMI THE NEW FEDERAL COMMUNICATIONS COMMISSSION CHAIRMAN REED HUNDT EXHORTED BROADCASTERS TO VOLUNTARILY CUT BACK ON VIOLENT SCENES AND COUPLED THAT APPEAL WITH THE THREAT THAT THE F. C. C. WOULD VIGOROUSLY ENFORCE ANY LEGISLATION THAT CONGRESS DECIDED TO PASS THE CHAIRMAN OF DUTCH AIRCRAFT MAKER FOKKER N. V. RESIGNED IN A BOARDROOM CLASH OVER THE NEED FOR RESTRUCTURING AND LAYOFFS ERIK JAN NEDERKOORN FIFTY YEARS OLD QUIT WHEN HIS PLANS FOR A THIRD ROUND OF JOB CUTS PROVED TOO UNPOPULAR HIS DEPARTURE LEAVES THE COMPANY WITHOUT A CLEAR STRATEGY AT A CRUCIAL TIME MR. NEDERKOORN COULDN'T BE REACHED FOR COMMENT MR. NEDERKOORN WAS SUCCEEDED BY VICE CHAIRMAN REINDER VAN DUINEN IN A CARETAKER CAPACITY ONCE FAMOUS FOR BUILDING FIGHTER PLANES FOR GERMANY DURING WORLD WAR ONE AND FOR DESIGNING SOME OF THE WORLD'S FIRST COMMERCIAL AIRLINERS FOKKER HAS FACED INCREASINGLY BRUTAL COMPETITION IN ITS FIELD OF COMMUTER AIRCRAFT AND OTHER SMALL PLANES THE COMPANY HAS SAID IT EXPECTS TO POST A NET LOSS OF ABOUT ONE HUNDRED FIFTY MILLION DUTCH GUILDERS SEVENTY SIX POINT EIGHT SIX MILLION DOLLARS FOR NINETEEN NINETY THREE AND AT MIDYEAR IN NINETEEN NINETY THREE REPORTED DEBT OUTSTANDING OF FOUR POINT THREE BILLION GUILDERS FOKKER IS FIFTY ONE PERCENT OWNED BY DEUTSCHE AEROSPACE A. G. AN ARM OF GERMANY'S DAIMLER BENZ A. G. FOKKER CUT OVER ONE THOUSAND SIX HUNDRED JOBS IN TWO ROUNDS OF LAYOFFS LAST YEAR AND MR. NEDERKOORN HAD BEEN PLANNING A THIRD WAVE OF FIRINGS QUOTE IT'S NOT CLEAR YET WHAT WILL HAPPEN QUOTE TO THE LAYOFF PLANS SAID A SPOKESWOMAN AT THE COMPANY WHICH CURRENTLY EMPLOYS AROUND NINE THOUSAND EIGHT HUNDRED PEOPLE FOKKER'S BOARDROOM HAS BEEN HIT BY SUCCESSIVE RESIGNATIONS OVER THE PAST FEW YEARS MR. NEDERKOORN'S EFFORTS TO SELL FOKKER TO DEUTSCHE AEROSPACE A DEAL THAT WENT THROUGH IN EARLY NINETEEN NINETY THREE STIRRED LONG LASTING RESENTMENT RHONE POULENC RORER INCORPORATED THE U. S. PHARMACEUTICAL SUBSIDIARY OF FRENCH CHEMICALS AND DRUG GROUP RHONE POULENC S. A. SAID ITS NINETEEN NINETY THREE NET INCOME FELL FOUR POINT SIX PERCENT TO FOUR HUNDRED EIGHT POINT SEVEN MILLION DOLLARS AS SALES DECLINED TWO PERCENT TO FOUR POINT OH TWO BILLION DOLLARS THE UNIT ALSO SAID PER SHARE EARNINGS WILL LIKELY BE QUOTE MODERATE QUOTE IN NINETEEN NINETY FOUR THAT IS AROUND TEN PERCENT ABOVE NINETEEN NINETY THREE'S PER SHARE EARNINGS OF TWO DOLLARS AND NINETY SIX CENTS AND PER SHARE EARNINGS GROWTH IN NINETEEN NINETY FIVE AND BEYOND SHOULD BE AT LEAST TEN PERCENT PER YEAR DEPENDING ON THE SUCCESS OF NEW PRODUCTS COMPANY OFFICIALS SAID AT A NEWS CONFERENCE IN PARIS RHONE POULENC RORER OFFICIALS ALSO SAID THAT THEY ARE LOOKING FOR A STRATEGIC PARTNER TO DEVELOP OPERATIONS WORLD WIDE IN OVER THE COUNTER DRUGS CHIEF OPERATING OFFICER MICHEL DE ROSEN SAID THAT THE GROUP WANTS TO INCREASE ITS WEIGHT IN THE O. T. C. BUSINESS IN THE U. S. AND IMPROVE ITS RESULTS IN EUROPE MATRA HACHETTE S. A. CHAIRMAN JEAN LUC LAGARDERE SAID MONDAY THAT HE HAS PROPOSED A PUBLIC EXCHANGE OFFER FOR ALL OF THE CAPITAL OF MATRA HACHETTE OFFERING TO SWAP MATRA HACHETTE SHARES FOR THOSE OF ITS PARENT COMPANY LAGARDERE GROUPE S. A. ONE MATRA HACHETTE SHARE WOULD BE EXCHANGED FOR ONE LAGARDERE GROUPE SHARE PLUS ONE WARRANT MR. LAGARDERE ALSO SAID HE EXPECTS MATRA HACHETTE'S NINETEEN NINETY THREE PROFIT TO EXCEED SIX HUNDRED MILLION FRANCS ONE HUNDRED ONE POINT FIVE MILLION DOLLARS UP FROM NINETEEN NINETY TWO'S NET INCOME OF THREE HUNDRED FIFTY FOUR MILLION FRANCS MR. LAGARDERE SAID THE GROUP WILL FOLLOW THROUGH ONLY IF IT IS ABLE TO ACQUIRE SIXTY FIVE PERCENT OF MATRA HACHETTE'S CAPITAL LAGARDERE NOW HOLDS THIRTY SEVEN POINT SIX PERCENT OF MATRA HACHETTE'S CAPITAL AND SIXTY ONE POINT TWO PERCENT OF THE VOTING RIGHTS LAGARDERE SHARES WERE SUSPENDED AT ONE HUNDRED SIXTY FRANCS TWENTY SEVEN DOLLARS AND FIVE CENTS THOSE OF MATRA HACHETTE WERE SUSPENDED AT ONE HUNDRED SIXTY FIVE POINT FOUR FRANCS BOSNIAN SERBS ORDERED A NEW MILITARY CALL UP TO PREPARE FOR WIDER CLASHES WHILE THE EXTENT OF THE MOBILIZATION WASN'T KNOWN IT SEEMED TO STEM FROM THE INCREASINGLY AGGRESSIVE MILITARY STANCE OF BOSNIA'S MUSLIM LED GOVERNMENT TROOPS AS WELL AS FEARS THE WEST MIGHT INTERVENE IN RECENT MONTHS THE GOVERNMENT FORCES HAVE SHOWN SURPRISING STRENGTH AGAINST THE SERBS AND HAVE TAKEN TERRITORY IN CENTRAL BOSNIA FROM ETHNIC CROATS AMID THE SERB AND CROAT MILITARY SETBACKS THERE HAVE BEEN PERSISTENT REPORTS THAT CROATIA AND SERB DOMINATED YUGOSLAVIA HAVE BEGUN SENDING THOUSANDS OF SOLDIERS INTO BOSNIA THE U. S. ENDORSED A REPORT BY U. N. CHIEF BOUTROS GHALI GIVING THE GO AHEAD FOR AIR STRIKES ON BOSNIAN SERBS IF THEY DON'T ALLOW THE REPLACEMENT OF PEACEKEEPERS AT SREBRENICA AND THE OPENING OF TUZLA'S AIRPORT U. S. MARINES OPENED FIRE IN A MOGADISHU STREET CROWDED WITH SOMALIS WAITING FOR FREE FOOD AT LEAST EIGHT PEOPLE DIED AND MANY WERE WOUNDED A U. S. SPOKESMAN SAID THE TWENTY TWO MARINES SHOT IN SELF DEFENSE AFTER SNIPERS SHOT AT THEIR FIVE VEHICLE CONVOY SOMALI WITNESSES AND BANGLADESHI PEACEKEEPERS SAID NO ONE FIRED AT THE AMERICANS RUSSIA'S PRIVATIZATION CHIEF VOWED TO FIGHT ANY EFFORTS TO SLOW ECONOMIC REFORMS BUT CHUBAIS THE ONLY LEADING LIBERAL LEFT IN THE RUSSIAN CABINET CAUTIONED THAT THE DEPARTURE OF ECONOMICS MINISTER GAIDAR AND FINANCE MINISTER FYODOROV QUOTE CREATES A REAL DANGER QUOTE OF BACKSLIDING EMBRYONIC BRAIN CELLS WERE PLACED ON ELECTRONIC CHIPS AND WERE INDUCED TO GROW IN WHAT RESEARCHERS SAID WAS A KEY FIRST STEP TOWARD CREATING MICROCHIPS USING LIVING CELLS THE SCIENTISTS HOPE TO BE ABLE TO GET THE BRAIN CELLS OR NEURONS TO GROW CONNECTIONS TO EACH OTHER CRUDELY MIMICKING BRAIN CIRCUITRY TWO KEY REPUBLICAN SENATORS STRESSED THAT ANY HEALTH REFORM BILL SHOULD PROVIDE FOR UNIVERSAL INSURANCE COVERAGE THE REMARKS BY CHAFEE AND NICKLES CAME A WEEK AFTER CLINTON THREATENED TO VETO ANY HEALTH BILL THAT DOES NOT GUARANTEE EVERY AMERICAN PRIVATE HEALTH INSURANCE THAT CAN NEVER BE TAKEN AWAY ISRAELI CABINET MINISTERS PREDICTED A BREAKTHROUGH IN ISRAEL P. L. O. TALKS AS PRIME MINISTER RABIN REVIEWED A DRAFT AGREEMENT DRAWN UP IN SWITZERLAND THE ACCORD REACHED DURING DISCUSSIONS BETWEEN FOREIGN MINISTER PERES AND THE P. L. O.'S ARAFAT WOULD HELP PAVE THE WAY FOR PALESTINIAN SELF RULE A U. S. HUMAN RIGHTS REPORT WILL FAULT CHINA FOR NOT MAKING ENOUGH PROGRESS A SENIOR ADMINISTRATION OFFICIAL SAID THE STATE DEPARTMENT'S MOSTLY NEGATIVE REPORT ON CHINA DUE TO BE ISSUED TODAY COMES AS WASHINGTON NEARS A DECISION ON RENEWING BEIJING'S SPECIAL TRADE STATUS THE ANNUAL REPORT COVERS RIGHTS PROBLEMS WORLD WIDE TEENAGE DRUG USE ROSE SIGNIFICANTLY LAST YEAR FOR THE FIRST TIME IN MORE THAN A DECADE A NEW STUDY SHOWS IN NINETEEN NINETY THREE FORTY TWO POINT NINE PERCENT OF HIGH SCHOOL SENIORS SAID THEY HAD USED AN ILLICIT DRUG ACCORDING TO THE UNIVERSITY OF MICHIGAN SURVEY DRUG USE HAD BEEN DECLINING SINCE NINETEEN EIGHTY WHEN SIXTY FIVE POINT FOUR PERCENT OF SENIORS SAID THEY HAD USED ILLICIT DRUGS HAIR DYE USE DOESN'T INCREASE THE RISK OF CANCER ACCORDING TO A LARGE SEVEN YEAR STUDY CONDUCTED BY THE AMERICAN CANCER SOCIETY THE STUDY WAS INTENDED TO ADDRESS CONCERNS THAT WERE RAISED BY EARLIER RESEARCH KOHL SAID THAT BUILDING DEMOCRACY IN RUSSIA AND EASTERN EUROPE IS THE MAJOR FUTURE TASK FACING THE WEST AND HE URGED THE U. S. TO MAINTAIN ITS GLOBAL LEADERSHIP THE WORLD CONTINUES TO PIN ITS HOPES ON THE U. S. THE GERMAN CHANCELLOR SAID IN A WASHINGTON SPEECH TO STATE GOVERNORS AFTER A MEETING WITH CLINTON MANDELA REJECTED A DEMAND FOR CHANGES IN THE VOTING RULES FOR SOUTH AFRICA'S FIRST ALL RACE ELECTION IN APRIL MAKING IT EVEN MORE UNLIKELY THAT DISSIDENTS WILL TAKE PART A ROUND OF TALKS BETWEEN MANDELA'S AFRICAN NATIONAL CONGRESS THE WHITE GOVERNMENT AND AN ALLIANCE OF OPPONENTS ENDED WITH LITTLE CHANCE FOR AN AGREEMENT CRIMEA'S NEWLY ELECTED LEADER PLEDGED TO CALL A REFERENDUM ON INDEPENDENCE FROM UKRAINE YURI MESHKOV A PRO RUSSIAN SECESSIONIST WON SUNDAY'S PRESIDENTIAL RUNOFF ELECTION WITH SEVENTY THREE PERCENT OF THE VOTE IN THE AUTONOMOUS REPUBLIC HE HAS SAID HE FAVORS A GRADUAL REUNION WITH RUSSIA A TEXTRON INCORPORATED AUTOMOTIVE PARTS MAKER FACES FINANCIAL LIABILITY FOR A FAULTY FUEL PIPE ASSEMBLY THAT IT SUPPLIED TO GENERAL MOTORS CORPORATION ACCORDING TO PEOPLE FAMILIAR WITH A RECALL ANNOUNCED LAST WEEK G. M. RECALLED FIFTY THREE THOUSAND NEW S. TEN PICKUP TRUCKS AND EXPECTS TO MAKE THE CHANGE ON SIXTY SEVEN THOUSAND UNSOLD VEHICLES SAYING THAT THE FAULTY PARTS DIDN'T MEET FEDERAL STANDARDS FOR FUEL LEAKAGE IN A COLLISION G. M. WOULDN'T NAME THE SUPPLIER OF THE PART AND TEXTRON IN PROVIDENCE R. I. DIDN'T RETURN CALLS YESTERDAY BUT A PERSON FAMILIAR WITH THE SITUATION SAID THE SUPPLIER WAS A CINCINNATI BASED TEXTRON UNIT RANDALL TEXTRON THE UNIT WAS ALSO NAMED AS THE SUPPLIER IN THE CURRENT ISSUE OF THE AUTOMOTIVE NEWS TRADE WEEKLY A G. M. SPOKESWOMAN SAID THE UNIDENTIFIED SUPPLIER QUOTE HAS STEPPED UP TO IT AND ACKNOWLEDGED ITS RESPONSIBILITY QUOTE SHE SAID THAT THE COMPANY HAS OTHERWISE BEEN A QUALITY SUPPLIER TO US FOR MANY YEARS CONSOLIDATED FREIGHTWAYS INCORPORATED SAID THAT WHILE ITS LONG HAUL TRUCKING BUSINESS CONTINUES TO LAG A SURGE IN AIR FREIGHT AND REGIONAL TRUCKING DROVE FOURTH QUARTER EARNINGS INTO THE BLACK CONSOLIDATED IN PALO ALTO CALIFORNIA REPORTED FOURTH QUARTER NET INCOME OF TWELVE POINT ONE MILLION DOLLARS OR THIRTY THREE CENTS A SHARE COMPARED WITH A LOSS OF EIGHTEEN POINT SIX MILLION DOLLARS OR FIFTY THREE CENTS A SHARE A YEAR EARLIER THE COMPANY'S YEAR AGO RESULTS INCLUDED SEVENTEEN POINT THREE MILLION DOLLARS OR FIFTY ONE CENTS A SHARE FOR NONRECURRING CHARGES FOURTH QUARTER REVENUE WAS ONE POINT ONE BILLION DOLLARS UP EIGHT POINT FIVE PERCENT FROM ONE BILLION DOLLARS A YEAR AGO FOR ALL OF NINETEEN NINETY THREE CONSOLIDATED REPORTED NET INCOME OF THIRTY ONE POINT SIX MILLION DOLLARS OR EIGHTY SEVEN CENTS A SHARE COMPARED WITH A NINETEEN NINETY TWO LOSS OF NINETY SEVEN POINT SEVEN MILLION DOLLARS OR TWO DOLLARS AND SEVENTY EIGHT CENTS A SHARE THE NINETEEN NINETY TWO RESULTS INCLUDED ONE TIME CHARGES AND THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE REVENUE FOR NINETEEN NINETY THREE WAS FOUR POINT TWO BILLION DOLLARS UP THREE POINT FOUR PERCENT FROM FOUR POINT ONE BILLION DOLLARS IN NINETEEN NINETY TWO THE STOCK CLOSED AT TWENTY SIX DOLLARS AND TWENTY FIVE CENTS A SHARE UP SEVENTY FIVE CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK ECHANGE CANADA'S NATIONAL ENERGY BOARD APPROVED INTERPROVINCIAL PIPE LINE INCORPORATED'S PLAN TO EXPAND ITS PIPELINE SYSTEM FOR DELIVERING CRUDE OIL TO U. S. PIPELINES SUPPLYING THE U. S. MIDWEST THE BOARD SAID INTERPROVINCIAL WILL BE ABLE TO CONSTRUCT ABOUT THREE HUNDRED FOUR MILES OF TWENTY INCH DIAMETER PIPELINE ACROSS THE CANADIAN PRAIRIES REACTIVATE AN IDLE PIPELINE AND EXPAND ITS OIL PUMPING FACILITIES IT SAID INTERPROVINCIAL PLANS TO SPEND TWO HUNDRED FIFTY SIX MILLION CANADIAN DOLLARS ONE HUNDRED NINETY THREE POINT THREE MILLION DOLLARS ON THE PIPELINE EXPANSION THIS YEAR THE BOARD PREDICTED THAT UNDER OIL PRICE ASSUMPTIONS PROVIDED BY INTERPROVINCIAL THE PROJECT WOULD STIMULATE PRODUCTION OF CANADIAN CRUDE OIL THAT WOULD OTHERWISE BE DIFFICULT TO TRANSPORT AND THAT IT WOULD IMPROVE THE COMPETITIVE POSITION OF CANADIAN CRUDE OIL DELIVERIES TO THE U. S. MIDWEST INTERPROVINCIAL EDMONTON ALBERTA IS A UNIT OF INTERPROVINCIAL PIPE LINE SYSTEM INCORPORATED ALSO OF EDMONTON WESTINGHOUSE ELECTRIC CORPORATION PITTSBURGH SAID IT COMBINED ITS U. S. NAVY OPERATIONS WITH ITS DEPARTMENT OF ENERGY AND ENVIRONMENTAL SERVICES BUSINESSES THE MOVE IS PART OF NEW CHAIRMAN MICHAEL H. JORDAN'S PLAN TO FOCUS ON SEVERAL CORE BUSINESSES WHICH ALSO INCLUDE POWER GENERATION BROADCASTING ELECTRONIC SYSTEMS AND THERMO KING A TRANSPORTATION REFRIGERATION COMPANY THE NEW UNIT IS CALLED WESTINGHOUSE GOVERNMENT AND ENVIRONMENTAL SERVICES COMPANY QUOTE THE NEW ORGANIZATION WILL HAVE SEVERAL ADVANTAGES QUOTE MR. JORDAN SAID IT WILL HELP TRANSFER THE BEST SAFETY ENVIRONMENTAL AND MANAGEMENT PRACTICES AMONG THE D. O. E. SITES WE MANAGE IT WILL QUICKEN THE PACE OF TECHNOLOGY TRANSFER FROM D. O. E. SITES INTO THE PRIVATE SECTOR AND IT WILL PROVIDE THE SENIOR MANAGEMENT LEADERSHIP NECESSARY TO FURTHER IMPROVE PERFORMANCE OF OUR NAVY NUCLEAR PROGRAMS FRANCIS J. HARVEY FIFTY YEARS OLD WAS NAMED PRESIDENT OF THE NEW UNIT HE MOST RECENTLY WAS VICE PRESIDENT OF WESTINGHOUSE'S SCIENCE AND TECHNOLOGY CENTER TWO NATIONAL MEDIA CORPORATION SHAREHOLDERS FILED SUIT IN THE DELAWARE COURT OF CHANCERY IN WILMINGTON SEEKING TO HALT VALUEVISION INTERNATIONAL INCORPORATED'S UNSOLICITED BID TO ACQUIRE NATIONAL MEDIA THE SUIT FILED JANUARY TWENTIETH ALLEGES THAT THE TEN DOLLAR A SHARE OFFER BY VALUEVISION A MINNEAPOLIS BASED HOME SHOPPING NETWORK DOES NOT FAIRLY VALUE NATIONAL MEDIA A PHILADELPHIA INFOMERCIAL MARKETER IT NAMES VALUEVISION NATIONAL MEDIA AND THE OFFICERS AND DIRECTORS OF NATIONAL MEDIA ON FRIDAY NATIONAL MEDIA'S BOARD REJECTED VALUEVISION'S ONE HUNDRED SEVENTEEN POINT FIVE MILLION DOLLAR OFFER CALLING IT INADEQUATE VALUEVISION DECLINED TO COMMENT THE PLAINTIFFS' LAWYERS DIDN'T RETURN CALLS FOR COMMENT IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING NATIONAL MEDIA SHARES FELL SEVENTY FIVE CENTS OR SIX POINT SEVEN PERCENT TO TEN POINT THREE SEVEN FIVE DOLLARS VALUEVISION'S CLASS A SHARES FINISHED AT TWELVE DOLLARS AND TWENTY FIVE CENTS UNCHANGED IN NASDAQ STOCK MARKET TRADING MURPHY OIL CORPORATION SAID IT WILL CUT ADMINISTRATIVE COSTS BY OFFERING HOLDERS OF SMALL LOTS THE OPPORTUNITY TO SELL THEIR SHARES WITHOUT PAYING A COMMISSION THE OIL AND NATURAL GAS COMPANY BASED IN EL DORADO ARKANSAS SAID HOLDERS OF FEWER THAN ONE HUNDRED SHARES OF MURPHY COMMON STOCK OR FEWER THAN ONE HUNDRED EIGHTY TWO SHARES OF OCEAN DRILLING AND EXPLORATION COMPANY A COMPANY MURPHY ACQUIRED IN NINETEEN NINETY ONE CAN SELL THOSE SHARES THROUGH SHAREHOLDERS COMMUNICATIONS CORPORATION WITHOUT PAYING A FEE THE OIL AND NATURAL GAS COMPANY SAID THE PROGRAM IS OPEN TO STOCK OF RECORD JANUARY TWENTY FIRST AND WILL EXPIRE FEBRUARY TWENTY FIFTH A COMPANY SPOKESMAN ESTIMATED THERE WERE FOUR THOUSAND FOUR HUNDRED LOTS OF LESS THAN ONE HUNDRED MURPHY SHARES AND ONE THOUSAND FIVE HUNDRED LOTS OF LESS THAN ONE HUNDRED EIGHTY TWO OCEAN DRILLING SHARES COTT CORPORATION SAID IT REACHED A SUPPLY AGREEMENT WITH ROYAL CROWN COLA SECURING A LONG TERM SOURCE OF CONCENTRATE FOR COTT'S PRIVATE LABEL SOFT DRINKS WORLDWIDE UNDER THE TWENTY ONE YEAR AGREEMENT ROYAL CROWN A UNIT OF TRIARC COMPANIES OF MIAMI BEACH FLORIDA WILL BE THE EXCLUSIVE SUPPLIER FOR ALL COLA CONCENTRATES USED IN COTT'S RETAILER BRANDED SOFT DRINKS COTT A MISSISSAUGA ONTARIO PRIVATE LABEL SOFT DRINK CONCERN ALSO AGREED TO PURCHASE AT LEAST SEVENTY FIVE PERCENT OF ITS WORLD WIDE REQUIREMENTS FOR ALL TYPES OF CONCENTRATES FROM ROYAL CROWN UNDER THE PACT ROYAL CROWN WON'T SUPPLY CONCENTRATE TO OTHER PRIVATE LABEL SOFTDRINK COMPANIES SEPARATELY COTT SAID IT ACQUIRED A FIFTY ONE PERCENT STAKE IN THE CANNING OPERATION OF BENJAMIN SHAW AND SONS LIMITED THE SOFT DRINK UNIT OF RUTLAND TRUST P. L. C. OF THE UNITED KINGDOM FOR ABOUT NINE MILLION U. S. DOLLARS WITH OPTIONS TO ACQUIRE THE ENTIRE OPERATION NEXT YEAR COTT SAID THE CANNING PLANT HAS ANNUAL SALES OF MORE THAN SIXTY MILLION DOLLARS UNITED DOMINION INDUSTRIES LIMITED SAID IT AGREED TO SELL AN EIGHTY FIVE PERCENT STAKE IN ITS DOMINION BRIDGE CONSTRUCTION UNIT IN CANADA TO CEDAR GROUP INCORPORATED OF CONSHOHOCKEN PENNSYLVANIA UNITED DOMINION SAID IT WILL RECEIVE FIVE MILLION CANADIAN DOLLARS THREE POINT EIGHT MILLION U. S. DOLLARS IN CASH AND PREFERRED SHARES OF CEDAR EXCHANGEABLE INTO COMMON SHARES UNITED DOMINION SAID IT WILL TAKE A FOURTH QUARTER CHARGE OF UP TO FIVE MILLION U. S. DOLLARS RELATED TO THE SALE UNITED DOMINION A MANUFACTURING CONSTRUCTION AND ENGINEERING CONCERN IS INCORPORATED IN ONTARIO AND BASED IN CHARLOTTE N. C. THE SALE IS SUBJECT TO REGULATORY APPROVALS AND COMPLETION OF DEFINITIVE AGREEMENTS THE COMPANY SAID IT ENDED A PREVIOUS TENTATIVE AGREEMENT TO SELL THE EIGHTY FIVE PERCENT STAKE IN DOMINION BRIDGE TO A COMPANY RELATED TO MANSON GROUP OF MONTREAL THE JUSTICE DEPARTMENT CLEARED AN EATON CORPORATION DIVESTITURE THAT WILL ALLOW EATON TO ACQUIRE A UNIT OF WESTINGHOUSE ELECTRIC CORPORATION UNDER THE PLAN CLEVELAND BASED EATON WILL SELL ASSETS USED IN THE MANUFACTURE OF SWITCHES AND CIRCUIT BREAKERS AND THEN ACQUIRE WESTINGHOUSE'S DISTRIBUTION AND CONTROL UNIT WHICH MAKES SIMILAR DEVICES THE ONE POINT ONE BILLION DOLLAR ACQUISITION WILL ENHANCE EATON'S DIVERSIFICATION AND ALLOW PITTSBURGH BASED WESTINGHOUSE TO CUT ITS HEAVY DEBT AN EATON SPOKESMAN SAID THE COMPANY IS HOPEFUL THE TRANSACTION WILL BE COMPLETED SOON EATON'S SALE OF ITS ASSETS TO THOMAS AND BETTS OF MEMPHIS ENABLED THE JUSTICE AGENCY TO PERMIT THE EATON WESTINGHOUSE DEAL TO GO UNCHALLENGED QUOTE THIS DIVESTITURE PRESERVES COMPETITION FOR THE SALE OF BASIC PRODUCTS THAT ARE ESSENTIAL FOR THE SAFE USE OF ELECTRICITY SO THAT HOMEOWNERS BUSINESSES AND OTHER BUYERS ARE ENSURED THE BEST QUALITY PRODUCTS AT THE LOWEST POSSIBLE PRICES QUOTE SAID ANNE BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST R. J. R. NABISCO HOLDINGS CORPORATION'S NABISCO FOODS GROUP SAID IT ACQUIRED THE KNOX GELATIN BUSINESS IN THE U. S. AND PUERTO RICO FROM THOMAS J. LIPTON COMPANY AN OPERATING UNIT OF UNILEVER GROUP TERMS WEREN'T DISCLOSED THE PACT ALSO CALLS FOR NABISCO FOODS PARSIPPANY N. J. TO BUY TWO GELATIN PACKAGING LINES FROM LIPTON WHICH IT WILL INSTALL AT ITS SEVILLE OHIO PLANT JOHN GREENIAUS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NABISCO FOODS SAID THE ACQUISITION IS PART OF A STRATEGY TO ENHANCE PROFITABILITY IN ITS ROYAL DESSERTS BUSINESS R. J. R. NABISCO HOLDINGS IS A NEW YORK BASED FOOD AND TOBACCO COMPANY THE MORE WE BECOME FAMILIAR WITH THE CLEAN AIR ACT AMENDMENTS OF NINETEEN NINETY THE MORE WE'RE INCLINED TO THINK IT'S ONE OF THE MORE MONSTROUS PIECES OF FEDERAL LEGISLATION PASSED IN OUR ERA IT'S WORTH ONE'S ATTENTION IF FOR NO OTHER REASON THAN THAT IT TYPIFIES SO WELL THE NATURE OF MUCH MODERN LEGISLATION BEYOND THE GOO GOO NAME THE PUBLIC ACTUALLY KNOWS LITTLE IF ANYTHING ABOUT THE LAW'S ABSTRUSE DETAILS AND THE PUBLIC IS GOING TO HAVE NEXT TO NOTHING TO DO WITH ITS IMPLEMENTATION AND NOTHING WHATSOEVER TO SAY ABOUT ITS COSTS WHICH THEY WILL PAY FOR INSTANCE THE LAW MAY INCREASE THE COST OF A NEW CAR IN MANY STATES BY ONE THOUSAND DOLLARS TODAY THIRTEEN BUREAUCRATS WILL VOTE ON THAT THEY MAKE UP SOMETHING CALLED THE OZONE TRANSPORT COMMISSION THE CLEAN AIR AMENDMENTS CREATED THE OZONE TRANSPORT COMMISSION WHICH CONSISTS OF THE ENVIRONMENTAL OFFICERS OF TWELVE STATES IN THE EAST FROM VIRGINIA TO MAINE PLUS THE DISTRICT OF COLUMBIA THE CONGRESSIONAL STAFFERS AND OTHERS WHO WROTE THE CLEAN AIR AMENDMENTS ASSIGNED SOME SMOG REDUCTION GOALS WITH DEADLINES AND THEN GAVE THE COMPLIANCE JOB TO THE STATES WHICH IN REALITY MEANS THEIR RESPECTIVE UNELECTED ENVIRONMENTAL BUREAUCRACIES TODAY'S VOTE IS AN INTERESTING AND CLEVER EXAMPLE OF HOW THE PROCESS WORKS ONCE THE LAW HAS BEEN PASSED THE STATE OFFICERS ARE VOTING ON WHETHER THEY SHOULD QUOTE ASK QUOTE THE U. S. ENVIRONMENTAL PROTECTION AGENCY TO PROPOSE A FEDERAL RULE THAT WOULD REQUIRE THE SALE OF CALIFORNIA TYPE QUOTE LOW EMISSION VEHICLES QUOTE IN THEIR STATES AND BEYOND THIS VOTE ALWAYS LIES THE POSSIBILITY OF LITIGATION FROM THE SIERRA CLUB AND HENRY WAXMAN TO ENLIST FEDERAL JUDGES IN THE PROCESS CLEAN AIR MERITS ASIDE WHAT FASCINATES US ABOUT THIS IS HOW THE PROCESS MAKES IT NEARLY IMPOSSIBLE TO IDENTIFY WHO IS RESPONSIBLE OR ACCOUNTABLE FOR ANYTHING HERE BEYOND THE ORIGINAL VOTE IN CONGRESS FOR CLEAN AIR IN FACT THE VOTE TODAY BY THE OZONE TRANSPORT COMMISSION IS BEING HOTLY CONTESTED BUT IT'S UNLIKELY THAT ANY CITIZEN OF THESE TWELVE STATES OTHER THAN THE IMMEDIATE COMBATANTS KNOWS MUCH OF ANYTHING ABOUT THE BATTLE OVER WHETHER TO MAKE PEOPLE PAY PERHAPS ONE THOUSAND DOLLARS EXTRA FOR LOW EMISSION CARS THAT'S THE AUTO INDUSTRY'S EDUCATED GUESS OF INTRODUCING WHAT'S KNOWN AS THE CALIFORNIA CAR TO THE NORTHEAST BUT FEW OBSERVERS DOUBT THAT PUTTING THE COMPLIANCE BURDENS ON NEW CARS WOULD INCREASE THEIR PRICE NOT TO MENTION THE ADDED COST OF REFORMULATED GASOLINE TO RUN THEM LAST JULY SCIENCE MAGAZINE PUBLISHED AN ARTICLE ON THIS SUBJECT BY FOUR SPECIALISTS ON EMISSIONS FROM M. I. T. BERKELEY CAL TECH AND THE NATIONAL CENTER FOR ATMOSPHERIC RESEARCH WE PARTICULARLY LIKED THE AUTHORS' IRONIC DESCRIPTION OF THE LAW'S FUEL REQUIREMENTS QUOTE OXYGENATE REQUIREMENTS IN THAT ACT WERE ARBITRARY IN A SCIENTIFIC SENSE AS DATA ARE BECOMING AVAILABLE THE COMPLEX PROBLEM OF FUEL EMISSIONS AND ATMOSPHERIC REACTIVITY IS BECOMING APPARENT THE GOOD NEWS IS THAT OUR FEDERAL SYSTEM STILL TRIES TO RESTRAIN HOW FAR CONGRESS CAN DRIVE WITH THE LIGHTS OFF VIRGINIA DELAWARE NEW HAMPSHIRE NEW JERSEY AND PENNSYLVANIA HAVE REPORTEDLY CONCLUDED THAT THERE MAY BE MORE COST EFFECTIVE APPROACHES THAN THE SQUEAKY CLEAN CALIFORNIA CAR NEW JERSEY'S NEW GOVERNOR CHRISTIE WHITMAN HAS ALREADY ORDERED HER ENVIRONMENTAL NOMINEE TO VOTE TODAY FOR A DELAY A REPORT BY THE NEW JERSEY INSTITUTE OF TECHNOLOGY PREDICTED MILLIONS OF DOLLARS IN ADDED COSTS THE SCIENCE MAGAZINE AUTHORS SAID THE EVERMORE EXPENSIVE FUEL RECIPES WERE SIMPLY A SUBSIDY FOR THE SMALL NUMBER OF DIRTY OLD CARS THAT ACTUALLY CAUSE THE SMOG PROBLEM THE MOST AGGRESSIVE ENVIRONMENTALISTS AND BUREAUCRATS HAVE A STOCK ANSWER NOW TO COST BENEFIT OBJECTIONS BETTER SAFE THAN SORRY OUR OWN VIEW WOULD BE THAT THE CLEAN AIR AMENDMENTS ARE A CASE HISTORY OF POLICY HUBRIS AGAIN AS IS BECOMING INCREASINGLY TYPICAL OF MODERN LEGISLATING THERE SEEMS TO HAVE BEEN AN ASSUMPTION HERE THAT YES THE LAW IS GOING TO IMPOSE SIGNIFICANT COSTS BUT THE DETAILS ARE TOO ARCANE TO GENERATE WIDE PUBLIC OPPOSITION AND YOU CAN PUSH IT ALL THROUGH ON A WAVE OF GOOD IF VAGUE INTENTIONS THEY'VE LARGELY BEEN RIGHT ABOUT THAT TOO BUT IF THESE TWELVE BUREAUCRATS PLUS THE DISTRICT INDEED VOTE TODAY TO ASK THE E. P. A. TO MANDATE SIGNIFICANTLY MORE EXPENSIVE NEW CARS VIA ADMINISTRATIVE FIAT THERE MAY BE A BACKLASH THIS TIME THAT DOESN'T MEAN AN ANGRY PUBLIC WILL WIN THE CLEAN AIR MONSTER WAS VOTED INTO LAW BACK IN NINETEEN NINETY CONGRESS AT LEAST A DEMOCRATICALLY CONTROLLED CONGRESS DOESN'T MUCH LIKE TO REVISIT ITS CREATIONS FOR PURPOSES OF SHRINKING THEM BUT THE CLEAN AIR MONSTER WILL BE WORTH REMEMBERING AS CONGRESS UNDERTAKES THE CLINTONS' HEALTH CARE PLAN THE SUBJECT IS DIFFERENT THE PROCESS IS THE SAME GATEWAY TWO THOUSAND INCORPORATED NORTH SIOUX CITY S. D. SAID IT EXPECTS TO REPORT FOURTH QUARTER SALES OF MORE THAN FIVE HUNDRED FORTY FIVE MILLION DOLLARS OR FIFTY FOUR PERCENT HIGHER THAN A YEAR EARLIER EARNINGS AT THE MAIL ORDER COMPUTER CONCERN ARE ESTIMATED AT FORTY ONE CENTS TO FORTY THREE CENTS A SHARE FOR NET INCOME OF THIRTY MILLION DOLLARS TO THIRTY ONE POINT FIVE MILLION DOLLARS GATEWAY IS EXPECTED TO RELEASE ITS FULL FINANCIAL RESULTS NEXT WEEK THE COMPANY WHICH RAISED ONE HUNDRED SIXTY THREE POINT FIVE MILLION DOLLARS IN AN INITIAL OFFERING IN DECEMBER ATTRIBUTED THE SALES GAINS TO RECORD DEMAND FOR ITS MULTIMEDIA PERSONAL COMPUTERS ITS PORTABLE P. C.S AND ITS MACHINES BASED ON INTEL CORPORATION'S TOP OF THE LINE PENTIUM MICROPROCESSOR THE COMPANY SAID ITS FOURTH QUARTER REVENUE INCLUDES FIFTEEN MILLION DOLLARS IN SALES FROM THE EUROPEAN UNIT OPENED IN OCTOBER FOR THE YEAR GATEWAY PUT REVENUE AT ONE POINT SEVEN THREE BILLION DOLLARS COMPARED WITH ONE POINT ONE ONE BILLION DOLLARS FOR NINETEEN NINETY TWO OXFORD HEALTH PLANS INCORPORATED CITING A SURGE IN MEMBERSHIP SAID FOURTH QUARTER NET INCOME GREW NINETY THREE PERCENT AND REVENUE MORE THAN DOUBLED EARNINGS TOTALED FOUR POINT SEVEN MILLION DOLLARS OR TWENTY EIGHT CENTS A SHARE COMPARED WITH TWO POINT FOUR MILLION DOLLARS OR FIFTEEN CENTS A SHARE A YEAR EARLIER REVENUE GREW TO NINETY FIVE POINT NINE MILLION DOLLARS FROM FORTY SIX POINT SIX MILLION DOLLARS OXFORD BASED IN NORWALK CONNECTICUT MARKETS HEALTH PLANS TO EMPLOYERS IT SAID IT ADDED THREE HUNDRED SIXTY EMPLOYER GROUPS AND SEVENTEEN THOUSAND INDIVIDUAL MEMBERS IN THE LATEST QUARTER INCREASING YEAR END INDIVIDUAL MEMBERSHIP EIGHTY FIVE PERCENT TO TWO HUNDRED SEVENTEEN THOUSAND FIVE HUNDRED AN AVERAGE SIX POINT NINE PERCENT OVERALL PREMIUM RATE INCREASE APPROVED BY THE NEW YORK STATE INSURANCE DEPTARMENT FOR NINETEEN NINETY FOUR SHOULD HAVE A POSITIVE IMPACT ON THIS YEAR'S RESULTS OXFORD SAID FOR THE YEAR EARNINGS INCREASED THIRTY TWO PERCENT TO FOURTEEN POINT NINE MILLION DOLLARS OR NINETY ONE CENTS A SHARE FROM ELEVEN POINT THREE MILLION DOLLARS OR SEVENTY FOUR CENTS A SHARE IN NINETEEN NINETY TWO B. M. W. AGREED TO BUY EIGHTY PERCENT OF BRITISH AUTO MAKER ROVER CARS FOR ONE POINT TWO BILLION DOLLARS THE PURCHASE WOULD NEARLY DOUBLE B. M. W.'S SALES AND VAULT IT INTO THE LUCRATIVE U. S. MARKET FOR SPORT UTILITY VEHICLES WITH THE VENERABLE LAND ROVER NAME BRITISH AEROSPACE ROVER'S PARENT ACCEPTED AN OFFER FROM B. M. W. SATURDAY AFTER HONDA PASSED UP A CHANCE TO BUY THE EIGHTY PERCENT OF ROVER THAT IT DOESN'T ALREADY OWN THE DOW JONES INDUSTRIAL AVERAGE CLIMBED THIRTY TWO POINT NINE THREE TO A RECORD THREE THOUSAND NINE HUNDRED SEVENTY EIGHT POINT THREE SIX AS INVESTORS PILED INTO ECONOMICALLY SENSITIVE STOCKS ESPECIALLY ALUMINUM AND AUTO MANUFACTURERS THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE LOST MORE THAN ONE QUARTER POINT ITS YIELD ROSE TO SIX POINT TWO THREE PERCENT FEDERAL RESERVE CHAIRMAN GREENSPAN WARNED CONGRESS THAT THE FED WOULD BOOST SHORT TERM INTEREST RATES QUOTE AT SOME POINT QUOTE BUT HE REFUSED TO SPECULATE ABOUT WHEN IT MIGHT DO SO A. T. AND T.'S EO IS EXPECTED TO REDESIGN ITS SMALL DATA COMMUNICATOR AFTER SELLING LESS THAN TEN THOUSAND OF THE HAND HELD DEVICES AND THEN REPOSITION ITS PRODUCTS AS SMART CELLULAR TELEPHONES I. B. M. DECIDED TO FORGO THE RIGHT TO MAKE INTEL'S LATEST GENERATION CHIP THE PENTIUM FREEING I. B. M. TO PUT MORE RESOURCES BEHIND ITS RIVAL ENTRY IN AN EMERGING CHIP WAR THE POWERPC AN F. D. A. PROBE FOUND SEVERAL IRREGULARITIES IN THE PRODUCTION OF COPLEY'S RECALLED ASTHMA DRUG ALBUTEROL JAPANESE STOCKS SOARED SEVEN POINT EIGHT PERCENT MONDAY THE FOURTH LARGEST GAIN EVER TRIGGERED BY A POLITICAL REFORM ACCORD A G. A. T. T. ACCORD PROVISION THAT ALLOWS CERTAIN GOVERNMENT SUBSIDIES WAS BLASTED BY ALL FORTY FOUR SENATE REPUBLICANS GIVING THE WHITE HOUSE ITS FIRST BIG POLITICAL TEST IN ITS EFFORT TO PUSH THE GLOBAL TRADE PACT THROUGH CONGRESS TRADE REPRESENTATIVE KANTOR WENT TO TOKYO TO PRESS THE JAPANESE CABINET TO BREAK AN IMPASSE IN TRADE TALKS MANY PARAMOUNT INVESTORS DECIDED NOT TO TENDER THEIR SHARES YET IN HOPE OF SEEING A HIGHER OFFER FROM Q. V. C. BY TODAY'S FIVE P. M. BIDDING DEADLINE Q. V. C.'S BOARD DIDN'T ISSUE ANY STATEMENT AFTER A MEETING YESTERDAY LEE IACOCCA IS FORMING A MERCHANT BANK THAT WILL FOCUS ON DEALS IN ENTERTAINMENT AIRLINES AND GAMBLING A MORATORIUM ON TAKEOVERS OF MUTUAL SAVINGS ASSOCIATIONS WAS DECLARED BY THE OFFICE OF THRIFT SUPERVISION WHILE IT CONSIDERS POSSIBLE NEW RULES FRENCH EURO DISNEY BONDHOLDERS ARE DEMANDING REPRESENTATION AT TALKS AIMED AT SALVAGING THE PARK AND WANT WALT DISNEY TO COME TO THEIR RESCUE DISPOSABLE PERSONAL INCOME ROSE ZERO POINT FIVE PERCENT IN DECEMBER FROM NOVEMBER MATCHING INCREASES IN SPENDING MICROGRAFX IS TEAMING UP WITH THE MAKER OF CRAYOLA CRAYONS TO DEVELOP A LINE OF CHILDREN'S COMPUTER PROGRAMS LEHMAN BROTHERS PLANS TO LAUNCH A DERIVATIVES UNIT AND NUNZIO TARTAGLIA IS EXPECTED TO HEAD EQUITY DERIVATIVES RESEARCH AND QUANTITATIVE ANALYSIS BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND SIX HUNDRED FORTY SIX POINT NINE EIGHT OFF NINE POINT OH FIVE COMMODITIES OIL FIFTEEN DOLLARS AND NINETEEN CENTS A BARREL OFF FIFTEEN CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY TWO POINT ONE FIVE UP ZERO POINT FIVE NINE SPOT INDEX ONE HUNDRED TWENTY NINE POINT SEVEN THREE UP ZERO POINT ONE SIX DOLLAR ONE HUNDRED EIGHT POINT SEVEN OH YEN OFF ONE POINT THREE OH ONE POINT SEVEN THREE FOUR FIVE MARKS OFF ZERO POINT ZERO ZERO EIGHT ZERO SHARES OF APPLIED INNOVATION INCORPORATED JUMPED SEVEN POINT EIGHT PERCENT AFTER THE COMPANY ANNOUNCED A TWO FOR ONE STOCK SPLIT AND SAID IT EXPECTS TO POST STRONGER EARNINGS FOR NINETEEN NINETY THREE THE COMPANY WHICH MAKES NETWORK MANAGEMENT PRODUCTS FOR TELECOMMUNICATIONS COMPANIES EXPECTS TO REPORT NET INCOME OF THREE POINT SIX MILLION DOLLARS FOR THE FOURTH QUARTER UP FROM ONE POINT FIVE MILLION DOLLARS A YEAR AGO THE WORTHINGTON OHIO COMPANY'S SHARES ROSE THREE DOLLARS AND SEVENTY FOUR CENTS TO A NEW FIFTY TWO WEEK HIGH OF FIFTY ONE DOLLARS AND SEVENTY FIVE CENTS ON THE NASDAQ MARKET THE TWO FOR ONE STOCK SPLIT IS PAYABLE MARCH SECOND TO STOCK OF RECORD FEBRUARY SIXTEENTH THE COMPANY HAD THREE POINT SIX MILLION SHARES OUTSTANDING AT THE END OF DECEMBER DOW JONES AND COMPANY SAID IT ADOPTED A NEW PRICING STRUCTURE FOR ITS DOW JONES NEWS SLASH RETRIEVAL SERVICE IN THE U. S. BASED ON THE AMOUNT OF INFORMATION RECEIVED EFFECTIVE MARCH FIRST CUSTOMERS WILL PAY ONE DOLLAR AND FIFTY CENTS PER ONE THOUSAND CHARACTERS OF INFORMATION INCLUDING LETTERS SPACES AND PUNCTUATION MARKS REGARDLESS OF THE TIME OF DAY OR NETWORK SPEED THE RATE PREVIOUSLY WAS ONE DOLLAR AND FOURTEEN CENTS PER ONE THOUSAND CHARACTERS CHARGES FOR TIME SPENT ON LINE WHICH HAD RANGED FROM EIGHTY CENTS TO ONE DOLLAR AND NINETY FIVE CENTS A MINUTE WILL BE ELIMINATED ALL CUSTOMERS PAY A ONE TIME START UP FEE OF TWENTY NINE DOLLARS AND NINETY FIVE CENTS AND AN ANNUAL NINETEEN DOLLARS AND NINETY FIVE CENTS SERVICE FEE DOW JONES NEWS SLASH RETRIEVAL PROVIDES A WIDE VARIETY OF ON LINE BUSINESS AND FINANCIAL NEWS AND INFORMATION INCLUDING THE FULL TEXT OF THE WALL STREET JOURNAL THE SERVICE IS PUBLISHED BY DOW JONES BUSINESS INFORMATION SERVICES A PART OF THE INFORMATION SERVICES GROUP OF DOW JONES DOW JONES ALSO PUBLISHES THE WALL STREET JOURNAL BARRON'S MAGAZINE AND COMMUNITY NEWSPAPERS THERMO ELECTRON CORPORATION SAID TWO OF ITS PUBLIC SUBSIDIARIES ACQUIRED ANALYTICAL INSTRUMENT AND PROCESS CONTROL BUSINESSES FROM BAKER HUGHES INCORPORATED FOR ONE HUNDRED THIRTY FOUR MILLION DOLLARS THERMO INSTRUMENT SYSTEMS INCORPORATED WILL PAY NINETY THREE MILLION DOLLARS FOR UNITS THAT MANUFACTURE PROCESS MEASUREMENT AND CONTROL EQUIPMENT WHILE THERMEDICS INCORPORATED WILL ACQUIRE THE RAMSEY TECHNOLOGIES AND EPSILON INDUSTRIAL MATERIALS AND MEASUREMENT BUSINESSES FOR FORTY ONE MILLION DOLLARS BAKER HUGHES' ENVIROTECH NORAN INSTRUMENTS TN TECHNOLOGIES AND TREMETRICS UNITS WILL GO TO THERMO INSTRUMENT THE FOUR BUSINESSES HAD COMBINED SALES OF ONE HUNDRED TWENTY NINE MILLION DOLLARS IN THE YEAR ENDED SEPTEMBER THIRTIETH RAMSEY WHICH MAKES EQUIPMENT THAT WEIGHS AND INSPECTS BULK PACKAGED MATERIALS AND EPSILON A DEVELOPMENT STAGE COMPANY WORKING ON EQUIPMENT THAT MEASURES THE MOISTURE CONTENT OF MATERIALS HAD COMBINED REVENUE OF FIFTY NINE MILLION DOLLARS IN THE YEAR ENDED SEPTEMBER THIRTIETH BAKER HUGHES SAID THE PRICE FOR THE UNITS IS QUOTE SLIGHTLY IN EXCESS QUOTE OF ITS TOTAL INVESTMENT THE COMPANY SAID THE AGREEMENT WHICH IS EXPECTED TO CLOSE BY THE END OF NEXT MONTH DOES NOT INCLUDE THE COMPUTER PERIPHERALS BUSINESS IN EUROPE TRACOR EUROPA THERMEDICS WHICH MAKES EXPLOSIVES AND DRUG DETECTION EQUIPMENT SAID THE ACQUISITIONS WILL HELP EXTEND ITS NEW QUALITY ASSURANCE PRODUCT LINE FOR THE BEVERAGE INDUSTRY TO RELATED MARKETS SUCH AS FOOD INSPECTION THERMO INSTRUMENT AN INSTRUMENT MAKER SAID IT GAINS NEW TECHNOLOGY IN THE ON LINE PROCESS INSTRUMENTATION MARKET SEPARATELY THERMO REMEDIATION INCORPORATED ANOTHER PUBLIC THERMO UNIT DECLARED ITS FIRST CASH DIVIDEND OF FIFTEEN CENTS A SHARE PAYABLE MARCH FIFTEENTH TO HOLDERS OF RECORD FEBRUARY FIFTEENTH THE COMPANY SAID IT INTENDS TO PAY A CASH DIVIDEND SEMI ANNUALLY UPJOHN COMPANY KALAMAZOO MICHIGAN SAID ITS FOURTH QUARTER EARNINGS ROSE SIX PERCENT TO ONE HUNDRED SIXTY THREE POINT EIGHT MILLION DOLLARS OR NINETY TWO CENTS A SHARE FROM ONE HUNDRED FIFTY FOUR POINT TWO MILLION DOLLARS OR EIGHTY SIX CENTS A SHARE A YEAR EARLIER THE RESULTS WHICH EXCEEDED ANALYSTS EXPECTATIONS MARKED THE LAST QUARTER UNDER THE TEAM LED BY THEODORE COOPER UPJOHN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO DIED IN APRIL FROM CANCER LAST MONTH UPJOHN NAMED JOHN L. ZABRISKIE AN EXECUTIVE VICE PRESIDENT AT MERCK AND COMPANY AS CHAIRMAN AND C. E. O. HE OFFICIALLY ASSUMED RESPONSIBILITY THIS MONTH SALES FOR THE PERIOD SLID FOUR POINT TWO PERCENT TO NINE HUNDRED TWENTY SIX POINT THREE MILLION DOLLARS FROM NINE HUNDRED SIXTY SEVEN POINT ONE MILLION DOLLARS A YEAR EARLIER SALES OF SEVERAL UPJOHN PRODUCTS WERE DOWN FROM THE YEAR EARLIER PERIOD WORLDWIDE SALES OF XANAX AN ANTI ANXIETY AGENT PLUNGED THIRTY NINE PERCENT DURING THE QUARTER TO ONE HUNDRED TWENTY MILLION DOLLARS PATENT PROTECTION ON UPJOHN'S TOP SELLING DRUG EXPIRED LAST OCTOBER SALES OF ROGAINE A TREATMENT FOR HAIR LOSS SLIPPED THIRTY THREE PERCENT TO TWENTY EIGHT MILLION DOLLARS AND SALES OF HALCION A SLEEP MEDICATION WERE OFF ONE PERCENT HALCION WHICH IS BANNED IN THE UNITED KINGDOM LOST ITS PATENT PROTECTION IN OCTOBER TOO UPJOHN COMPANY SAID WORLD WIDE SALES OF ITS HALCION SLEEPING PILL ROSE ONE PERCENT IN THE FOURTH QUARTER FROM A YEAR EARLIER AN ARTICLE YESTERDAY INCORRECTLY STATED THAT HALCION SALES WERE OFF ONE PERCENT FOR THE PERIOD THE GENERAL PARTNERS OF SEVENTEEN PARTNERSHIPS THAT OWN SELF SERVICE STORAGE CENTERS INDICATED THEY ARE CLOSE TO WINNING APPROVAL OF A PLAN TO CONSOLIDATE THE PARTNERSHIPS INTO A PUBLICLY TRADED COMPANY MEANWHILE U. HAUL INTERNATIONAL INCORPORATED WHICH IS TRYING TO ACQUIRE THE PARTNERSHIPS FOR THREE HUNDRED FIFTY SEVEN POINT FIVE MILLION DOLLARS SAID FEW PARTNERSHIP UNITS HAVE BEEN TENDERED TO IT THE PARTNERSHIPS ARE MANAGED BY SHURGARD INCORPORATED OF SEATTLE WHOSE CONTROLLING SHAREHOLDER IS A GENERAL PARTNER OF ALL THE PARTNERSHIPS SHURGARD IS FIGHTING U. HAUL'S BID SAYING IT FALLS WELL SHORT OF THE NET ASSET VALUE OF THE PARTNERSHIPS AND THEIR LIKELY VALUATION BY THE STOCK MARKET SHURGARD SAID IT HAD BEEN TENDERED A MAJORITY OF THE UNITS OF FIFTEEN OF THE PARTNERSHIPS AND CLOSE TO A MAJORITY OF THE UNITS OF TWO OTHER PARTNERSHIPS THE SHURGARD OFFER EXPIRES FEBRUARY TWENTY SECOND U. HAUL CONTROLLED BY THE SHOEN FAMILY THROUGH ITS AMERCO HOLDING COMPANY SAID NO MORE THAN SEVEN PERCENT OF THE UNITS OF ANY OF THE PARTNERSHIPS HAD BEEN TENDERED TO IT THE U. HAUL OFFER EXPIRES FEBRUARY OCTEL COMMUNICATIONS CORPORATION SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE V. M. X. INCORPORATED FOR STOCK VALUED AT ONE HUNDRED THIRTY NINE POINT ONE MILLION DOLLARS UNDER THE TERMS OF THE MERGER OCTEL SAID IT WILL PAY ONE OF ITS SHARES FOR EACH FIVE V. M. X. SHARES OCTEL WHICH HAS ABOUT EIGHTEEN MILLION SHARES OUTSTANDING SAID IT WILL ISSUE AN ADDITIONAL FIVE POINT THREE MILLION SHARES WHICH WILL BE EXCHANGED FOR V. M. X.'S TWENTY SIX POINT FIVE MILLION SHARES OUTSTANDING IN NASDAQ TRADING YESTERDAY OCTEL'S SHARES FELL ONE DOLLAR AND FIFTY CENTS A SHARE OR FIVE POINT FOUR PERCENT TO CLOSE AT TWENTY SIX DOLLARS AND TWENTY FIVE CENTS WHILE V. M. X. SHARES JUMPED EIGHTY ONE POINT TWO FIVE CENTS OR NINETEEN POINT FOUR PERCENT TO CLOSE AT FIVE DOLLARS A SHARE OCTEL A MILPITAS CALIFORNIA COMMUNICATIONS SOFTWARE MAKER SAID THE ACQUISITION OF V. M. X. WILL GIVE THE COMPANY A COMBINED CUSTOMER BASE OF SEVENTEEN THOUSAND USERS AND THIRTY THOUSAND SYSTEMS V. M. X. BASED IN SAN JOSE CALIFORNIA SPECIALIZES IN VOICE PROCESSING SOFTWARE TELESAT CANADA SAID IT EXPECTS TO RESTORE TO COMMERCIAL SERVICE A COMMUNICATIONS SATELLITE THAT IT SAYS WAS KNOCKED OUT OF COMMISION TWO WEEKS AGO BY A POWERFUL GEOMAGNETIC STORM TELESAT OFFICIALS SAID THEY INTEND TO KEEP THE ANIK E. TWO SATELLITE POINTING TOWARD EARTH BY FIRING THE SPACECRAFT'S THRUSTER ROCKETS EVERY FEW MINUTES FOR THE REMAINDER OF THE SATELLITE'S OPERATING LIFE THE PROCEDURE WILL REDUCE THE SATELLITE'S LIFE BY AS MUCH AS TWO YEARS TELESAT OFFICIALS ESTIMATED THE E. TWO WHICH WAS LAUNCHED IN NINETEEN NINETY ONE WAS EXPECTED TO LAST FOR ANOTHER TEN YEARS THE PLAN REQUIRES TELESAT TO BUILD A GROUND NETWORK OF SENSORS TO MEASURE THE SATELLITE'S TILT FROM THE EQUATOR THE SYSTEM IS EXPECTED TO COST ABOUT THREE MILLION CANADIAN DOLLARS TWO POINT THREE MILLION U. S. DOLLARS SAID LARRY BOISVERT TELESAT PRESIDENT QUOTE WE ARE ONE HUNDRED PERCENT TECHNICALLY CONFIDENT THAT WE CAN MAKE THIS SYSTEM WORK TO BRING ANIK E. TWO INTO FULL COMMERCIAL SERVICE THIS SUMMER QUOTE HE SAID TELESAT IS CONTROLLED BY CANADA'S MAJOR TELEPHONE COMPANIES R. H. MACY AND COMPANY PROVIDING DETAILS ABOUT ITS IMPORTANT DECEMBER SELLING SEASON SAID THAT DESPITE A SLIP IN TOTAL SALES ITS PROFIT ROSE ALMOST THIRTY EIGHT PERCENT IN A MONTHLY COURT FILING REQUIRED WHILE OPERATING UNDER CHAPTER ELEVEN BANKRUPTCY LAW PROTECTION FROM CREDITORS MACY SAID IT HAD NET INCOME OF TWO HUNDRED THREE POINT THREE MILLION DOLLARS UP FROM ONE HUNDRED FORTY SEVEN POINT SEVEN MILLION DOLLARS IN DECEMBER NINETEEN NINETY TWO THE NEW YORK BASED RETAILER WHICH OPERATES ONE HUNDRED ELEVEN MACY'S AND BULLOCK'S DEPARTMENT STORES AMONG OTHERS SAID THE RESULTS WERE DUE LARGELY TO IMPROVEMENTS IN MERCHANDISING GROSS MARGIN AND CONTINUED REDUCTION IN OPERATING EXPENSES AS REPORTED TOTAL SALES FOR THE MONTH DROPPED ONE POINT FIVE PERCENT TO ONE POINT ONE SEVEN EIGHT BILLION DOLLARS COMPARED WITH ONE POINT ONE NINE SIX BILLION DOLLARS IN DECEMBER NINETEEN NINETY TWO DECEMBER SALES IN STORES OPEN MORE THAN ONE YEAR A KEY RETAILING INDICATOR WERE FLAT WITH THE YEAR EARLIER MACY'S EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION IN DECEMBER ROSE ABOUT THIRTY PERCENT TO TWO HUNDRED SIXTY SIX POINT ONE MILLION DOLLARS COMPARED WITH TWO HUNDRED FIVE POINT ONE MILLION DOLLARS IN DECEMBER NINETEEN NINETY TWO INTERNATIONAL MUSTO EXPLORATIONS LIMITED SAID IT SIGNED A LETTER OF INTENT WITH M. I. M. HOLDINGS LIMITED OF AUSTRALIA TO JOINTLY DEVELOP MUSTO'S BIG COPPER AND GOLD DEPOSIT IN ARGENTINA UNDER THE PROPOSED AGREEMENT M. I. M. WOULD PAY MUSTO ONE HUNDRED THIRTY MILLION DOLLARS U. S. FOR A FIFTY PERCENT STAKE IN THE BAJO DE LA ALUMBRERA PROJECT THE DEPOSIT CONTAINS MINEABLE RESERVES OF TEN MILLION OUNCES OF GOLD AND SIX BILLION POUNDS OF COPPER ACCORDING TO MUSTO WHICH IS BASED IN VANCOUVER BRITISH COLUMBIA THE PACT COULD THWART A PLANNED TAKEOVER BID BY METALL MINING CORPORATION OF TORONTO FOR ALL THE SHARES OF MUSTO METALL SAID LAST WEEK IT PLANS TO OFFER SIXTEEN POINT TWO FIVE CANADIAN DOLLARS TWELVE U. S. DOLLARS AND TWENTY SIX CENTS FOR EACH OF THE SIXTEEN POINT THREE MILLION MUSTO SHARES OUTSTANDING ON A FULLY DILUTED BASIS MUSTO DIRECTOR BILL RAND SAID THE COMPANY PREFERS THE M. I. M. PACT BECAUSE IT ATTACHES A HIGHER VALUE TO THE PROJECT THAN THE PLANNED METALL OFFER WHICH HAS AN INDICATED VALUE OF TWO HUNDRED SIXTY FIVE MILLION CANADIAN DOLLARS A METALL OFFICIAL SAID THE COMPANY WILL MAKE A FORMAL OFFER FOR THE MUSTO SHARES THIS WEEK MUSTO SAID A FORMAL PACT WITH M. I. M. IS EXPECTED LATE THIS MONTH SEARS ROEBUCK AND COMPANY IS JUMPING INTO CELEBRITY SPONSORSHIP WITH BOTH FEET THE RETAILER SAID IT WILL BE A PRIME SPONSOR OF THE STARS AND STRIPES BOAT IN THE AMERICA'S CUP RACES BEGINNING IN SEPTEMBER AND THIS SPRING WILL BEGIN SELLING AN EXCLUSIVE LINE OF MEN'S CASUAL SHOES AND SPORTSWEAR CALLED STARS AND STRIPES SEARS SAID THE SPONSORSHIP RESULTS FROM AGREEMENTS WITH STRIDE RITE CORPORATION THE CAMBRIDGE MASSACHUSETTS SHOE MAKER AND DENNIS CONNER THE RENOWNED SKIPPER OF THE STARS AND STRIPES BOAT WHO ALSO OWNS THE STARS AND STRIPES LOGO THE AGREEMENTS ADD TO THE RECENT ROSTER OF CELEBRITIES AND BRAND NAMES THAT SEARS IS LINKING UP WITH IN AN EFFORT TO BOOST SALES AND BOLSTER ITS IMAGE LAST MONTH SEARS ANNOUNCED IT WOULD BE THE EXCLUSIVE SPONSOR OF PHIL COLLINS'S CONCERT TOUR THAT BEGINS IN MAY BUT JUST HOW SEARS WILL BENEFIT THROUGH SPONSORING AN EVENT SUCH AS THE AMERICA'S CUP WHOSE PATRONS' TASTES ARE TYPICALLY MORE UPSCALE THAN THE STORES' APPAREL OFFERINGS IN UNCLEAR SEARS SAYS THAT WHILE YACHTING MAY BE A SPORT PRACTICED MOSTLY BY THE WEALTY THE AMERICA'S CUP EVENT HAS BROAD APPEAL AS DO THE PATRIOTIC THEMES ASSOCIATED WITH THE BOAT AND THE RACE SEARS WILL SPEND THREE MILLION DOLLARS TO BECOME A QUOTE GOLD QUOTE SPONSOR OF THE APPAREL CAMPAIGN AS SUCH ITS LOGO WILL APPEAR FROM TIME TO TIME ON ONE OF THE BOAT'S SAILS DURING THE RACES SEARS JOINS GENERAL MOTORS CORPORATION'S CADILLAC DIVISION AS A STARS AND STRIPES SPONSOR THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JANUARY TWENTY EIGHTH NINETEEN NINETY FOUR 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 GENESEE COUNTY INDUSTRIAL DEVELOPMENT AGENCY WILL REDEEM ON MARCH FIRST NINETEEN NINETY FOUR ONE HUNDRED THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS SIX POINT THREE SEVEN FIVE PERCENT REVENUE BONDS NINETEEN SEVENTY TWO SERIES A DUE MARCH FIRST NINETEEN NINETY SEVEN MARINE MIDLAND BANK NEW YORK IS TRUSTEE LEHIGH COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY PENNSYLVANIA WILL REDEEM ON MARCH FIRST NINETEEN NINETY FOUR ITS FIVE POINT SIX TWO FIVE PERCENT POLLUTION CONTROL REVENUE BONDS NINETEEN SEVENTY THREE SERIES A DUE MAY FIRST TWO THOUSAND THREE MELLON BANK PHILADELPHIA IS TRUSTEE MANITOBA PROVINCE WILL REDEEM ON MARCH FIFTEENTH NINETEEN NINETY FOUR ITS FOURTEEN AND THREE QUARTERS PERCENT DEBENTURES SERIES ELEVEN H. DUE MARCH FIFTEENTH NINETEEN NINETY SEVEN BANK OF MONTREAL TRUST COMPANY NEW YORK IS PAYING AGENT NORTH ANDOVER MASSACHUSETTS WILL REDEEM ON MARCH FIRST NINETEEN NINETY FOUR FOUR MILLION EIGHT HUNDRED FIFTY FIVE THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS FOURTEEN PERCENT RESOURCE RECOVERY REVENUE BONDS SERIES B. DUE MARCH FIRST NINETEEN NINETY SEVEN STATE STREET BANK AND TRUST COMPANY MASSACHUSETTS IS TRUSTEE ADA OKLAHOMA WILL REDEEM ON MARCH FIRST NINETEEN NINETY FOUR FIFTY THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS SEVEN POINT SEVEN OH PERCENT COMMERCIAL DEVELOPMENT FIRST MORTGAGE REVENUE BONDS SERIS A NINETEEN SEVENTY SIX DUE MARCH FIRST TWO THOUSAND ONE MELLON BANK PITTSBURGH IS TRUSTEE PARAMOUNT REDEVELOPMENT AGENCY WILL REDEEM ON MARCH FIRST NINETEEN NINETY FOUR SIX HUNDRED EIGHTY THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS TAX ALLOCATION BONDS NINETEEN SEVENTY SEVEN ISSUE DUE MARCH FIRST TWO THOUSAND TWO BANK OF AMERICA LOS ANGELES IS FISCAL AGENT STAFFORD COUNTY VIRGINIA WILL OPTIONALLY REDEEM ON MARCH FIRST NINETEEN NINETY FOUR THE FOLLOWING WATER AND SEWER BONDS SERIES NINETEEN SEVENTY ONE ONE HUNDRED FIFTY FIVE THOUSAND DOLLAR PRINCIPAL AMOUNT OF SIX POINT TWO FIVE PERCENT BONDS DUE SEPTEMBER FIRST NINETEEN NINETY FOUR AND TWO MILLION TWO HUNDRED SIXTY THOUSAND DOLLAR PRINCIPAL AMOUNT OF SIX POINT FIVE OH PERCENT BONDS DUE SEPTEMBER FIRST TWO THOUSAND FOUR THE MUNICIPALITY ALSO WILL REDEEM SIX HUNDRED THIRTY FIVE THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS SIX POINT TWO FIVE PERCENT WATER AND SEWER REVENUE AND GENERAL OBLIGATION BONDS SERIES NINETEEN SIXTY EIGHT DUE SEPTEMBER FIRST NINETEEN NINETY NINE SIGNET TRUST COMPANY RICHMOND VIRGINIA IS ESCROW AGENT ST. LOUIS COUNTY CHRISTIAN HOSPITAL NORTHWEST WILL REDEEM ON MARCH FIRST NINETEEN NINETY FOUR ONE MILLION ONE HUNDRED SIXTY FIVE THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS SIX POINT THREE SEVEN FIVE PERCENT FIRST MORTGAGE HOSPITAL BONDS SERIES NINETEEN SEVENTY THREE DUE MARCH FIRST TWO THOUSAND THREE BANK OF TOKYO TRUST COMPANY NEW YORK IS TRUSTEE VIRGIN ISLANDS WILL REDEEM ON MARCH FIRST NINETEEN NINETY FOUR EIGHT HUNDRED FIFTY THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS EIGHT PERCENT GENERAL OBLIGATION MATCHING FUND BONDS NINETEEN SEVENTY NINE SERIES DUE MARCH FIRST NINETEEN NINETY EIGHT CORESTATES BANK PHILADELPHIA IS PAYING AGENT NORTHERN STATES POWER COMPANY WILL REDEEM ON FEBRUARY TWENTY FOURTH NINETEEN NINETY FOUR THE FOLLOWING FIRST MORTGAGE BONDS SIX AND ONE EIGHTH PERCENT DUE JUNE FIRST NINETEEN NINETY FIVE FIVE AND SEVEN EIGHTHS PERCENT DUE AUGUST FIRST NINETEEN NINETY SIX SIX AND ONE HALF PERCENT DUE OCTOBER FIRST NINETEEN NINETY SEVEN AND SIX AND THREE QUARTERS PERCENT DUE MAY FIRST NINETEEN NINETY EIGHT HARRIS TRUST AND SAVINGS BANK CHICAGO IS TRUSTEE PUBLIC SERVICE ELECTRIC AND GAS COMPANY WILL REDEEM ON MARCH FIRST NINETEEN NINETY FOUR ITS FOUR AND FIVE EIGHTHS PERCENT FIRST AND REFUNDING MORTGAGE BONDS DUE NINETEEN NINETY FOUR FIRST FIDELITY BANK N. J. IS TRUSTEE RIOT VICTIM REGINALD O. DENNY'S CIVIL LAWSUIT AGAINST THE CITY OF LOS ANGELES AND SEVERAL TOP POLICE OFFICIALS HAS BEEN REINSTATED AND ALLOWED TO GO FORWARD U. S. DISTRICT JUDGE W. MATTHEW BYRNE JUNIOR OVERRULED MOTIONS BY LAWYERS FOR THE CITY OF LOS ANGELES FORMER POLICE CHIEF DARYL GATES AND OTHERS WHICH HAD ASKED THAT THE CASE BE THROWN OUT FOR THE SECOND TIME LATE LAST YEAR THE JUDGE DISMISSED MR. DENNY'S CLAIMS ALONG WITH THOSE OF THREE OTHER RIOT BEATING VICTIMS BUT ALLOWED THEM TO AMEND THEIR LEGAL THEORIES AND PRESENT SUPPORTING FACTS MORE FULLY THE OTHER PLAINTIFFS' SUITS ALSO WERE REVIVED EXPERTS HAD BEEN DOUBTFUL OF THE LEGAL STRENGTH OF MR. DENNY'S CASE BECAUSE CITIES GENERALLY HAVE NO DUTY TO PROTECT CITIZENS FROM CRIMES THE PLAINTIFF'S LAWYERS SAY THEY SURVIVED THE DISMISSAL MOTION BECAUSE THEY CONVINCED JUDGE BYRNE THAT ONCE A CITY AGREES TO PROVIDE POLICE SERVICES IT CANNOT DO SO IN A DISCRIMINATORY FASHION MR. DENNY AND THE OTHER PLAINTIFFS CLAIM THEY WERE BEATEN BECAUSE MR. GATES AND OTHERS DELIBERATELY FAILED TO PROVIDE POLICE SUPPORT IN BLACK NEIGHBORHOODS MOBIL CORPORATION SAID THE GRIFFIN FIELD OFFSHORE THE WEST AUSTRALIAN COAST BEGAN PRODUCING MOBIL SAID GROSS OIL PRODUCTION IS AT EIGHTY THOUSAND BARRELS A DAY OF WHICH ITS SHARE IS TWENTY EIGHT THOUSAND BARRELS DAILY THE FAIRFAX VIRGINIA COMPANY SAID ITS MOBIL EXPLORATION AND PRODUCING AUSTRALIA UNIT HAS A THIRTY FIVE PERCENT INTEREST IN THE FIELD THE COMPANY SAID THAT AFTER GAS PRODUCING FACILITIES ARE FULLY COMMISSIONED QUOTE IN THE NEXT FEW MONTHS QUOTE GAS PRODUCTION WILL REACH THIRTY EIGHT MILLION CUBIC FEET DAILY MAKING MOBIL'S SHARE THIRTEEN POINT THREE MILLION CUBIC FEET A DAY MOBIL SAID THE GRIFFIN FIELD IS AUSTRALIA'S FIRST OFFSHORE DEVELOPMENT TO COMMERCIALIZE NATURAL GAS PRODUCED ALONG WITH CRUDE OIL IT IS OPERATED BY B. H. P. PETROLEUM A UNIT OF BROKEN HILL PROPRIETARY COMPANY WHICH HAS A FORTY FIVE PERCENT INTEREST WHILE INPEX OF JAPAN HOLDS TWENTY PERCENT INDIA REDUCING ITS ROLE AS PROMISED IN THE LARGELY STATE OWNED MINING BUSINESS AMENDED LAWS TO LET FOREIGN INVESTORS SET UP WHOLLY OWNED VENTURES FOR PROSPECTING AND MINING AND TO OPEN THESE ACTIVITIES TO THE DOMESTIC PRIVATE SECTOR THE NEW RULES TURN OVER TO INDIA'S STATE GOVERNMENTS THE LICENSING FOR OPERATIONS INVOLVING ALL BUT ELEVEN MINERALS WHICH REQUIRE CENTRAL GOVERNMENT APPROVAL SINCE INDIA LAST MARCH SAID IT PLANNED TO OPEN UP THE INDUSTRY COMPANIES FROM COUNTRIES SUCH AS SOUTH AFRICA AUSTRALIA CANADA AND THE U. S. HAVE EXPRESSED INTEREST INDIA RECENTLY OPENED PETROLEUM NATURAL GAS AND COAL TO PRIVATE AND FOREIGN INVESTMENT THROUGH JOINT VENTURES OPENING THE MINING MONOPOLY WAS PROMPTED BY TECHNOLOGY NEEDS GROWING DEMAND FOR MINERALS AND THE GOVERNMENT'S INABILITY TO FINANCE STEPPED UP PROSPECTING AND MINING ABOUT FIFTY FIVE THOUSAND OF THE I. G. METALL UNION'S THREE POINT SEVEN MILLION MEMBERS IN WESTERN GERMANY'S METAL AND ENGINEERING INDUSTRIES STAGED SHORT WARNING STRIKES OVER EMPLOYERS' PROPOSED WAGE FREEZE AND BENEFIT REDUCTIONS BAVARIA WAS HIT HARDEST BY WALKOUTS OF THIRTY FIVE THOUSAND WORKERS AT EIGHTY COMPANIES NEGOTIATIONS WITH THE GESAMTMETALL EMPLOYER GROUP BROKE DOWN LAST WEEK BUT BOTH SIDES INDICATED WILLINGNESS TO RESUME THE TALKS I. G. METALL SEEKS PAY INCREASES BETWEEN FIVE POINT FIVE PERCENT AND SIX PERCENT OR LESS IN RETURN FOR JOB GUARANTEES SIX HUNDRED THOUSAND JOBS HAVE BEEN LOST IN THE SECTOR SINCE SPRING NINETEEN NINETY ONE EASTERN GERMAN WORKERS HAVE SEPARATE NEGOTIATIONS BARCELONA'S GRAN TEATRE DEL LICEU SPAIN'S LEADING OPERA HOUSE AND ONE OF THE WORLD'S LARGEST WAS DESTROYED BY FIRE THE NEOCLASSICAL THEATER WHICH OPENED IN ONE THOUSAND EIGHT HUNDRED FORTY SEVEN WAS SCHEDULED FOR A TWENTY EIGHT MILLION DOLLAR RESTORATION OFFICIALS SAID IT WOULD BE REBUILT THE THEATER'S DIRECTOR SAID A SPARK FROM A REPAIR WORKERS' BLOW TORCH IGNITED A CURTAIN FLAMES SPREAD FROM THE STAGE TO ENGULF THE THREE THOUSAND SEAT AUDITORIUM CAUSING MUCH OF THE ROOF TO COLLAPSE THE THEATER SURVIVED A FIRE IN APRIL ONE THOUSAND EIGHT HUNDRED SIXTY ONE AND AN INCIDENT IN ONE THOUSAND EIGHT HUNDRED NINETY THREE WHEN AN ANARCHIST DROPPED TWO BOMBS FROM THE UPPER GALLERY DURING A PERFORMANCE KILLING TWENTY PEOPLE THE LAUNCHING OF THE FIRST ALL JAPANESE MADE SATELLITE LOFTING ROCKET WAS POSTPONED MONDAY BECAUSE OF STORMY WEATHER JAPAN'S SPACE AGENCY SAID IT COULD TRY AGAIN NO SOONER THAN WEDNESDAY TO SEND UP THE H. THE SECOND FROM THE SOUTHERN ISLAND OF TANEGASHIMA THE H. THE SECOND THE COUNTRY'S FIRST ROCKET CAPABLE OF PUTTING BIG SATELLITES INTO ORBIT WILL CARRY EQUIPMENT TO TEST RE ENTRY HEAT SHIELDS OF SPACECRAFT PURCHASING POWER IN ELEVEN OF THE TWELVE EUROPEAN UNION NATIONS LAGGED BEHIND THAT IN THE U. S. AND JAPAN IN NINETEEN NINETY TWO THE E. U. SAID THE DATA REFLECT GROSS DOMESTIC PRODUCT PER CAPITA BASED ON PRICES FOR COMPARABLE GOODS ONLY LUXEMBOURG EXCEEDED JAPAN IN PURCHASING POWER BUT IT STILL TRAILED THE U. S. NEXT IN THE RANKING WERE FRANCE BELGIUM DENMARK GERMANY ITALY THE NETHERLANDS BRITAIN SPAIN IRELAND PORTUGAL AND GREECE THE E. U. ALSO SAID ITS G. D. P. GREW A REVISED ONE POINT ONE SIX PERCENT TO SIX POINT OH FIVE BILLION DOLLARS IN NINETEEN NINETY TWO COMPARED WITH TWO POINT THREE EIGHT PERCENT TO FIVE POINT ONE TWO BILLION DOLLARS IN THE U. S. AND ONE POINT THREE ONE PERCENT TO THREE POINT ONE SIX BILLION DOLLARS IN JAPAN A DARMSTADT COURT GRANTED PROSECUTORS' REQUEST TO ACQUIT THREE GERMANS OF HELPING IRAQ MAKE CHEMICAL WEAPONS IN VIOLATION OF EXPORT LAWS ON SALES OF TECHNOLOGY AND CHEMICALS PROSECUTORS COULDN'T PROVE THE DEFENDANTS KNEW IRAQ WOULD USE THE TECHNOLOGY TO MAKE CHEMICAL ARMS THE THREE WHO HAD ARGUED THAT THE EQUIPMENT WAS MEANT FOR MAKING PESTICIDES FOR CIVILIAN USE WERE AMONG TEN PEOPLE CHARGED IN ONE OF GERMANY'S BIGGEST POST GULF WAR CASES OF EXPORTS LINKED TO IRAQI ARMS PROGRAMS THREE DEFENDANTS REMAIN CHARGED WITH SELLING IRAQ EQUIPMENT FOR FILLING BOMBS AND SHELLS WITH POISON GAS FOUR OTHERS WERE ACQUITTED PRESIDENT GONZALO SANCHEZ DE LOZADA SAID BOLIVIA WOULD SELL TO PRIVATE INVESTORS AS MUCH AS FIFTY PERCENT OF THE LARGEST STATE OWNED COMPANIES HE SAID PROCEEDS COULD TOTAL EIGHT BILLION DOLLARS TO BE ALLOCATED TO SOCIAL SPENDING INCLUDING HOUSING HEALTH AND EDUCATION THE FIRST STAKES ARE TO BE SOLD IN COMMUNICATIONS OIL POWER RAILWAY AND STEEL COMPANIES AND THE NATIONAL AIRLINE LLOYD AEREO BOLIVIANO MR. SANCHEZ DE LOZADA SAID THE PLAN WOULD PROVIDE THE ENGINE FOR CONTINUED ECONOMIC GROWTH AND CREATE AS MANY AS FIVE HUNDRED THOUSAND JOBS DURING HIS FOUR YEAR TERM CONGRESS HAD PASSED A BILL ALLOWING THE PROGRAM WHICH THE PRESIDENT TERMED QUOTE CAPITALIZATION NOT PRIVATIZATION QUOTE OF ENTERPRISES HE SAID THE GOVERNMENT COULDN'T AFFORD TO OPERATE EFFICIENTLY BOLIVIA'S BIGGEST LABOR FEDERATION OPPOSES THE SELL OFFS BUT A ONE DAY GENERAL STRIKE IT STAGED LAST WEEK TO PROTEST THE PROGRAM WON ONLY LIMITED SUPPORT CUBA WHICH HAS MADE TOURISM A PRIORITY TO HELP RESCUE THE ECONOMY SAID THE SECTOR WAS GROWING AT LEAST THIRTY PERCENT A YEAR WITH IMPROVED SERVICE THE NUMBER OF FOREIGN VISITORS IN NINETEEN NINETY THREE JUMPED FORTY THREE PERCENT TO SEVEN HUNDRED THOUSAND FROM NINETEEN NINETY TWO AND GENERATED REVENUE OF MORE THAN SIX HUNDRED SIXTY MILLION DOLLARS A SURVEY OF BRITISH WOMEN BY GOOD HOUSEKEEPING MAGAZINE FOUND THAT ALMOST HALF PREFERRED A DELICIOUS RESTAURANT MEAL TO MAKING LOVE CHRYSLER CORPORATION WILL OFFER FOR THE FIRST TIME LOWER PRICED LEASES ON ITS BREAD AND BUTTER L. H. MIDSIZE SEDANS AND IT BEGAN DISCOUNTING MINIVANS BY AS MUCH AS TWO THOUSAND SIX HUNDRED DOLLARS TO PRE EMPT FORD MOTOR COMPANY'S FORTHCOMING WINDSTAR VAN CHRYSLER OFFICIALS SAID THEY DECIDED TO BEGIN OFFERING MORE AGGRESSIVELY PRICED LEASES ON THE DODGE INTREPID CHRYSLER CONCORDE AND EAGLE VISION L. H. SEDANS TO RESPOND TO GROWING DEMAND FOR LEASE DEALS IN THE MIDPRICED MARKET FORD GENERAL MOTORS CORPORATION AND JAPANESE AUTO MAKERS ARE HEAVILY PROMOTING LOW PAYMENT LEASES TO BOOST SALES CHRYSLER ALSO HAS HEFTY SUPPLIES OF UNSOLD CONCORDES AND VISIONS THAT A LOWER PRICED LEASE COULD HELP CLEAR OUT BUT ACCORDING TO NEWSLETTER WARD'S AUTOMOTIVE REPORT CHRYSLER HAD A SIXTY TWO DAY SUPPLY OF UNSOLD INTREPIDS AS OF DECEMBER THIRTY FIRST WELL WITHIN THE SIXTY TO SIXTY FIVE DAY SUPPLY RANGE AUTO MAKERS CONSIDER IDEAL CHRYSLER'S DECISION TO STEP UP MINIVAN DISCOUNTS LARGELY IN THE FORM OF LOWER PRICES FOR OPTION PACKAGES REPLAYS A STRATEGY THE NUMBER THREE U. S. AUTO MAKER HAS USED BEFORE TO HAMMER CHALLENGERS TO ITS LEADERSHIP IN THE MINIVAN MARKET BY CUTTING ITS MINIVANS' PRICES AND ADVERTISING A QUOTE NATIONAL MINIVAN SALE QUOTE THAT ENDS MAY THIRTY FIRST CHRYSLER HOPES TO SIPHON AWAY CUSTOMERS WHO MIGHT BUY THE NEW WINDSTAR WHEN IT GOES ON SALE MARCH TWENTY FOURTH IT'S NOT UNEXPECTED A FORD SPOKESMAN SAID IT GIVES US AN OPPORTUNITY TO SEE WHAT CHRYSLER'S PLANS ARE TEMPORARY HELP CHARGES START TO RISE SPURRED BY CLIMBING DEMAND TEMPORARY HELP FIRMS SAY ORDERS ZOOM AS EMPLOYERS USE TEMPS FOR MUCH OF THEIR INCREASED WORKPLACE NEEDS FOURTH QUARTER PLACEMENTS BY BABICH AND ASSOCIATES A DALLAS TEMP FIRM WERE DOUBLE THE YEAR EARLIER LEVEL AT HART MERRELL PERSONNEL CONSULTANTS ROCHESTER N. Y. REVENUE HAS GROWN THREEFOLD SINCE SEPTEMBER D. R. HORTON A TEXAS HOME BUILDER USES THREE PART TIME OR TEMPORARY OFFICE WORKERS UP FROM ONE A YEAR AGO THE DALLAS FEDERAL RESERVE BANK SAYS DEMAND FOR TEMPS AND RESULTING PRICE HIKES ARE QUOTE PARTICULARLY STRONG QUOTE IN ITS AREA FIRMS LIKE PANCOAST TEMPORARY SERVICES PITTSBURGH BLAME HIGHER WORKERS COMPENSATION COSTS FOR SOME PRICE BOOSTS BUT PRICE HIKES OFTEN MEAN IMPROVED PROFIT MARGINS EVEN AS WAGES RISE SAYS THE NATIONAL ASSOCIATION OF TEMPORARY SERVICES PORTLAND GENERAL ELECTRIC AND BANK OF AMERICA TRIM TEMP USE MANY CALIFORNIA COMPANIES AREN'T HIRING WORKERS TEMPORARY OR OTHERWISE GROUSES THOR GROUP A LOS ANGELES TEMP FIRM WAGES IN THE FREEZE AUTO MAKER POLICIES VARY ON MAKEUP PAY MOST G. M. AND FORD WORKERS WHO WERE IDLED BY THE RECENT SEVERE COLD SNAP IN MICHIGAN OHIO AND ELSEWHERE GOT EIGHTY PERCENT OF THEIR BASIC PAY UNDER U. A. W. CONTRACTS MITSUBISHI OWNED DIAMOND STAR MOTORS LET EMPLOYEES DO MAINTENANCE WORK OR TAKE VACATION SOME SEVENTY PERCENT OF WORKERS WHO SHOWED UP DECIDED TO GO HOME NISSAN PAID WORKERS AT ITS SMYRNA TENNESSEE PLANT EIGHTY PERCENT OR MORE IF THEY SHOWED UP AND COUNTED ABSENCES AS VACATION TIME TOYOTA WON'T PAY WORKERS FOR FIVE DAYS OF LOST WORK AT GEORGETOWN KENTUCKY BUT CONSIDERS GIVING THEM LOANS HONDA OFFERS AS OPTIONS VACATION PAY SATURDAY MAKEUP WORK OR A THREE HUNDRED FIFTY DOLLAR LOAN AT ONE PERCENT INTEREST ARRANGED BY CREDIT UNION PEOPLE PLACED IN PLANT CAFETERIAS SUBARU ISUZU HAS NOT DECIDED WHAT TO DO BEHOLDEN TO NONE FREE LANCE COMMUNICATORS PROLIFERATE GERALD BASTARACHE WHOSE PUBLIC RELATIONS JOB WAS CUT AT A TRADE GROUP IS A SHORT TERM WRITING CONSULTANT TO THE INTELLIGENT VEHICLE HIGHWAY SOCIETY WHILE HE SEEKS PERMANENT WORK WHEN YOU DOWNSIZE YOUR STAFF THE WORK STILL HAS TO BE DONE HE SAYS GARDNER BATES LEFT A TIRE COMPANY TWO YEARS AGO HE HAS WRITTEN SOME NEWSLETTERS SPEECHES AND NEWS RELEASES LIKE THEIR FOREBEARS LANCE BEARING KNIGHTS WHO FOUGHT FOR ANY KING THEY WISHED MODERN FREE LANCERS ARE MORE OBJECTIVE AND CREATIVE THAN STAFF WRITERS SAYS FLUKE CORPORATION WHICH REHIRED SOME FIRED WRITERS AS CONTRACTORS MANY WRITERS ENJOY THE INDEPENDENCE THE MORE I FREE LANCE THE MORE I'M HAPPY SAYS CHARLES SNYDER A FORMER KIPLINGER EDITOR WHO WRITES BUSINESS PUBLICATIONS CITING SURGING DEMAND FOR WRITERS FROM PAYROLL SLASHING EMPLOYERS MICHAEL BAN'S CHICAGO BASED PALADIN COMPANIES OPENED A SECOND TEMPS OFFICE IN SAN FRANCISCO IN NOVEMBER EXPLOITED IN THE U. S. A GROUP OF MEXICAN WORKERS START COLLECTING BACK PAY THE LABOR DEPARTMENT HAS BEGUN DISTRIBUTING FUNDS TO SOME FOUR HUNDRED FORMER MEXICAN IMMIGRANTS WHO WERE SMUGGLED INTO THE U. S. IN THE NINETEEN EIGHTIES BY THE GRIFFITH IVES FLOWER RANCH SOMIS CALIFORNIA THEY WORKED LONG HOURS SOMETIMES WITHOUT ANY WAGES AND WERE DOCKED FOR FOOD AND OTHER CHARGES EDWIN IVES THE RANCH OWNER GOT A PRISON SENTENCE AND HAD TO PAY MORE THAN ONE MILLION DOLLARS IN RESTITUTION A RIGHT TO KNOW MAKING GOOD ON A CLINTON CAMPAIGN PLEDGE THE FEDERAL CENTERS FOR DISEASE CONTROL THIS MONTH WILL ISSUE GUIDELINES URGING HOSPITALS TO NOTIFY FIRE FIGHTERS PARAMEDICS AND OTHER EMERGENCY RESPONSE WORKERS IF THEY ARE EXPOSED TO AIDS AND OTHER INFECTIOUS DISEASES A UNION OF THEIR OWN WORKERS AT ELECTROMATION INCORPORATED ELKHART INDIANA VOTED FOR TEAMSTERS REPRESENTATION THE N. L. R. B. ACTING ON A TEAMSTERS COMPLAINT RULED IN DECEMBER NINETEEN NINETY TWO THAT THE COMPANY'S ACTION COMMITTEES WHOSE WORKER MEMBERS WERE PICKED BY MANAGEMENT WERE ILLEGAL RAISING UNION DUES A TEAMSTERS PROPOSAL RAISES A RUCKUS REFORMIST PRESIDENT RON CAREY SETS OFF A FIRESTORM WITH HIS PLAN FOR A RANK AND FILE VOTE ON BOOSTING DUES TWENTY FIVE PERCENT TO REPLENISH DEPLETED FUNDS THE HIKE WOULD RAISE FIFTY MILLION DOLLARS A YEAR IN STRIKE MONEY WITH RICHER STRIKE BENEFITS THESE DAYS THE FUND IS PROJECTED TO GO BROKE IN JUNE THE PLAN WOULD ALSO RESTOCK THE UNION'S GENERAL FUND PARTLY TO FINANCE INCREASED ORGANIZING TWO TEAMSTERS BOARD MEMBERS VOTED AGAINST THE FORMULA OTHER OPPONENTS INSIST THE TEAMSTERS CONSTITUTION REQUIRES A SPECIAL DELEGATES' CONVENTION TO VOTE ON A DUES HIKE OTHERWISE A SMALL PERCENTAGE OF MEMBERS WHO COULD NOT KNOW THE TRUTH MIGHT VOTE UNNECESSARILY FOR A DUES INCREASE SAYS MICHAEL MORONEY DEPUTY TRUSTEE OF LOCAL TWO HUNDRED NINETY FIVE IN NEW YORK R. V. DURHAM A NORTH CAROLINA TEAMSTER BEATEN BY MR. CAREY FOR PRESIDENT TWO YEARS AGO ACCUSES HIM OF EXCESSES THAT DRAIN THE UNION'S COFFERS THE CHECKOFF THE A. F. L. C. I. O. SAYS IT WILL WITHHOLD RENOMINATION ENDORSEMENT OF REPRESENTATIVE DAN ROSTENKOWSKI D. ILLINOIS A LONGTIME UNION FRIEND WHO VOTED FOR NAFTA QUOTE OUT TASKING QUOTE USING SPECIALIZED VENDORS IS MORE WIDESPREAD THAN QUOTE OUTSOURCING QUOTE USING A SINGLE FULL SERVICE VENDOR THE INTERNATIONAL FACILITY MANAGEMENT ASSOCIATION REVEALS THE FEDERAL COMMUNICATIONS COMMISSION VOTED TWO TO ONE TO CLEAR INFINITY BROADCASTING CORPORATION'S PURCHASE OF A LOS ANGELES RADIO STATION ACCORDING TO COMMISSIONER JAMES H. QUELLO WHO HAD TRIED TO BLOCK THE TRANSFER BECAUSE OF REPEATED COMPLAINTS OF INDECENCY AGAINST INFINITY RADIO HOST HOWARD STERN THE F. C. C. IS EXPECTED TO ANNOUNCE THE ACTION TODAY ALONG WITH A FOUR HUNDRED THOUSAND DOLLAR FINE AGAINST INFINITY FOR SIX ALLEGED INDECENCY VIOLATIONS BY MR. STERN INFINITY IS ALREADY CONTESTING MORE THAN ONE MILLION DOLLARS IN F. C. C. FINES STEMMING FROM MR. STERN'S SHOW INFINITY IS BUYING KRTH F. M. IN LOS ANGELES FROM BEASLEY BROADCAST GROUP OF NAPLES FLORIDA FOR ONE HUNDRED TEN MILLION DOLLARS IT IS STILL SEEKING F. C. C. CLEARANCE FOR ITS PURCHASE OF WASHINGTON STATIONS WPGC A. M. SLASH F. M. FROM COOK INLET RADIO PARTNERS FOR ABOUT SIXTY MILLION DOLLARS INFINITY HAD SOUGHT F. C. C. CLEARANCE OF THE DEALS BEFORE JANUARY FIRST BUT THE COMMISSIONERS DELAYED SAYING THEY NEEDED A THOROUGH REVIEW OF MR. STERN'S ON AIR RECORD INFINITY HAS BEEN DUELING WITH THE F. C. C. FOR YEARS OVER MR. STERN'S SHOW OF WHICH MR. QUELLO HAS BEEN AN OUTSPOKEN CRITIC MOODY'S INVESTORS SERVICE INCORPORATED SAID IT LOWERED ITS RATING ON THIS DIVERSIFIED FOOD PROCESSOR'S SENIOR UNSECURED DEBT TO B. A A TWO FROM SINGLE A THREE SAYING THAT QUOTE ANY SUSTAINABLE AND SIGNIFICANT RECOVERY OF BORDEN'S CASH FLOW AND DEBT PROTECTION MEASUREMENTS WILL TAKE SOME TIME TO ACHIEVE QUOTE THE CHANGE AFFECTS ONE POINT EIGHT EIGHT BILLION DOLLARS OF LONG TERM DEBT MOODY'S ALSO SAID THAT DESPITE FOUR RESTRUCTURING CHARGES OVER THE PAST FOUR YEARS BORDEN'S OPERATING EARNINGS CONTINUED TO DECLINE MCKESSON CORPORATION SAID IT WILL LOWER ITS STAKE IN ITS ARMOR ALL PRODUCTS CORPORATION UNIT BY OFFERING ONE HUNDRED FORTY MILLION DOLLAR PRINCIPAL AMOUNT OF DEBENTURES EXCHANGEABLE INTO ARMOR ALL COMMON SHARES MCKESSON WHOSE PRINCIPAL BUSINESS IS HEALTH CARE SERVICES HAS BEEN STEADILY LOWERING ITS STAKE IN ARMOR ALL WHICH MAKES CAR CARE PRODUCTS QUOTE AS WE CONTINUE TO FOCUS MORE ON THE HEALTH CARE BUSINESS WE FEEL ARMOR ALL WILL HAVE A BETTER FUTURE AS AN INDEPENDENT COMPANY QUOTE A MCKESSON SPOKESMAN SAID IN SAN FRANCISCO MCKESSON SOLD SEVENTEEN PERCENT OF ITS STAKE IN ARMOR ALL IN NINETEEN EIGHTY SIX AND ANOTHER TWENTY SIX PERCENT OF THE COMPANY LAST YEAR CURRENTLY MCKESSON HOLDS ABOUT TWELVE MILLION ARMOR ALL SHARES OR FIFTY SEVEN PERCENT OF THE TWENTY ONE MILLION SHARES OUTSTANDING ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLY AVERAGE BASIS WEDNESDAY JANUARY NINETEENTH NINETEEN NINETY FOUR TERRY S. PRINDIVILLE GAZED AT THE WOMEN JAMMED CHEEK TO JOWL IN A BUSTLING SHOP IN SHANGHAI AND SAW OPPORTUNITY ALL THIS TUMULT THE J. C. PENNEY COMPANY EXECUTIVE THOUGHT TO BUY LINGERIE AT HIGHER PRICES AND LOWER QUALITY THAN HIS COMPANY COULD OFFER PENNEY ISN'T SELLING GOODS IN CHINA YET BUT MR. PRINDIVILLE AND HIS STAFF HOPE TO CHANGE THAT THEY ARE MASTERMINDING AN AMBITIOUS EXPANSION THAT IS TRANSFORMING STODGY OLD J. C. PENNEY INTO A MAJOR INTERNATIONAL RETAILER ALREADY PENNEY STORES ARE UNDER CONSTRUCTION IN MEXICO THE COMPANY WILL ADD NEARLY ONE MILLION SQUARE FEET OF RETAIL SPACE IN JAPAN NEXT FALL BY OFFERING ITS PRIVATE LABEL APPAREL IN THREE HUNDRED DEPARTMENT STORES OWNED BY AOYAMA TRADING COMPANY JAPAN'S LARGEST RETAILER OF MEN'S SUITS IT HAS BEEN SCOUTING SITES IN CHILE AFTER SURVEYS SHOWED THAT MANY CHILEANS ARE SO EAGER TO BUY AMERICAN GOODS THAT THEY REGULARLY FLY TO THE U. S. TO SHOP LICENSED PENNEY SHOPS ARE RACKING UP IMPRESSIVE SALES IN THE UNITED ARAB EMIRATES AND SINGAPORE IT IS TALKING WITH POTENTIAL LICENSEES INCLUDING ONE IN PORTUGAL THAT IS ALREADY SELLING PENNEY PRIVATE LABEL GOODS AND ANOTHER IN GREECE IT IS CONSIDERING ANCHORING A NEW REGIONAL MALL IN TAIWAN IT IS LOOKING INTO THAILAND AND INDONESIA IT OFFERS CATALOGS IN ICELAND BRAZIL AND RUSSIA AND IS TRANSLATING A TRIMMED DOWN CATALOG INTO SPANISH TO TAP THE LATIN AMERICAN MARKET PENNEY ISN'T ALONE IN LOOKING BEYOND THE OVERBUILT U. S. MARKET THE NORTH AMERICAN FREE TRADE AGREEMENT IS SPURRING MANY U. S. RETAILERS TO ENTER CANADA AND MEXICO WAL MART STORES INCORPORATED RECENTLY SPENT AN ESTIMATED THREE HUNDRED MILLION DOLLARS TO BUY ONE HUNDRED TWENTY STORES FROM WOOLWORTH CORPORATION AND GAIN A FOOTHOLD IN CANADA FOR EXAMPLE AND LED BY SPECIALTY RETAILERS SUCH AS TOYS QUOTE R. QUOTE US INCORPORATED EVEN TRADITIONALLY CAUTIOUS DEPARTMENT STORE OPERATORS ARE OVERCOMING THEIR PHOBIA ABOUT GOING OVERSEAS NORDSTROM INCORPORATED IS INVESTIGATING JOINT VENTURE PROSPECTS IN CHINA DILLARD DEPARTMENT STORES INCORPORATED IS ENTERING MEXICO AND SAKS FIFTH AVENUE AND FEDERATED DEPARTMENT STORES INCORPORATED'S BLOOMINGDALE'S DIVISION ARE STUDYING EUROPE BUT FEW HAVE GONE AFTER FOREIGN MARKETS IN AS MANY WAYS AS PENNEY AND WHAT HAPPENS TO THE PLANO TEXAS COMPANY ABROAD MAY HELP SHAPE ITS AND THE INDUSTRY'S FUTURE PENNEY'S RECENT FOREIGN THRUST BEGAN LESS THAN THREE YEARS AGO WHEN A GROUP OF MANAGERS URGED THE COMPANY TO CREATE AN INTERNATIONAL DIVISION GIVEN PENNEY'S TRADITIONAL CAUTION AND HISTORY OF FOREIGN BLUNDERS THEY FACED SOME OPPOSITION BUT THE GROUP INCLUDING MR. PRINDIVILLE AN EXECUTIVE VICE PRESIDENT OF THE COMPANY AND ALFRED F. LYNCH NOW THE DIVISION'S CHIEF EXECUTIVE ARGUED PERSUASIVELY THAT WITH U. S. OPPORTUNITIES DWINDLING THE COMPANY HAD TO TAKE THE FOREIGN GAMBLE TO STAY COMPETITIVE AND KEEP GROWING AND THEY SAW ABUNDANT OPPORTUNITIES IN OTHER COUNTRIES WHERE MANY MERCHANTS WERE LESS SOPHISTICATED AND PENNEY COULD CAPITALIZE ON ITS STRONG PRIVATE BRANDS PROBLEMS CROPPED UP OF COURSE THE COLLAPSE OF THE SOVIET UNION AFTER THE ABORTIVE COUP AGAINST MIKHAIL GORBACHEV SCUTTLED ONE JOINT VENTURE A YEAR OF NEGOTIATIONS TO BUY A RETAIL CHAIN IN HUNGARY FAILED AFTER THE GOVERNMENT RAISED THE PRICE REPEATEDLY CHINESE TARIFFS REMAIN A BARRIER TO DEVELOP MALLS ITS WAY IN MEXICO PENNEY HAD TO PERSUADE MEXICAN DEVELOPERS TO WORK WITH U. S. DEVELOPERS AND POTENTIAL PITFALLS ABOUND FOREIGN EXCHANGE FLUCTUATIONS CAN DEVOUR PROFITS AND SOCIAL CULTURAL AND LEGAL DIFFERENCES CAN CAUSE PROBLEMS IN THE CASE OF DEPARTMENT STORE OPERATORS SUCH AS PENNEY WHERE BY DEFINITION YOU'RE OFFERING A BROAD ASSORTMENT PETER MONASH A RETAIL CONSULTANT SAYS YOU HAVE TO TAKE CULTURAL DIFFERENCES INTO ACCOUNT MORE THAN SPECIALTY RETAILERS DO FOR DECADES U. S. RETAILERS EXPANDED OVERSEAS SPARINGLY MANY STILL SAW OPPORTUNITIES IN THE VAST AMERICAN MARKET AND CITED SUCH FOREIGN FLOPS AS THOSE OF SEARS ROEBUCK AND COMPANY IN SOUTH AMERICA AND FEDERATED IN SPAIN A FAILED ACQUISITION OF RETAIL CHAINS IN ITALY AND BELGIUM IN THE LATE NINETEEN SEVENTIES DIDN'T INSPIRE CONFIDENCE AT PENNEY EITHER IN BELGIUM PENNEY'S PLAN TO BUILD GIANT HYPERMARTS WAS THWARTED BY THE LOCAL EQUIVALENT OF ZONING BOARDS STACKED WITH COMPETING MERCHANTS THAT LEFT PENNEY WITH SMALL OUTDATED STORES IN CONGESTED DOWNTOWN AREAS WHILE COMPETITORS BUILT SPACIOUS SUBURBAN STORES THERE WAS NO WAY WE COULD GROW THE BUSINESS SAYS NARINA VAIRA A VICE PRESIDENT OF PENNEY'S INTERNATIONAL DIVISION PENNEY ALSO HAD ASSUMED IT COULD TURN AROUND THE CHAINS BY SLASHING BLOATED PAYROLLS AND RAISING PRODUCTIVITY ONLY TO FIND THAT LABOR LAWS IN BOTH COUNTRIES MADE LAYOFFS PROHIBITIVELY EXPENSIVE AND TIMECONSUMING BY NINETEEN EIGHTY PENNEY HAD BAILED OUT OF ITALY IN NINETEEN EIGHTY SEVEN THE COMPANY SOLD ITS FIFTY TWO STORE BELGIAN CHAIN AND TOOK A SIXTEEN MILLION DOLLAR CHARGE THE EXPERIENCE SCARRED THE COMPANY WILLIAM R. HOWELL PENNEY'S CHAIRMAN AND CHIEF EXECUTIVE SAID HE DIDN'T SEE ANY REASON TO INVEST OVERSEAS MOST MANAGERS DIRECTLY INVOLVED IN THE VENTURES RETIRED OR LEFT SAYS M. ALLEN HALE NOW A VICE PRESIDENT OF THE INTERNATIONAL DIVISION A SMALL EXPORT SALES OPERATION BECAME AN UNWANTED STEPCHILD YOU COULDN'T GET ANY INTEREST IN IT FROM UPSTAIRS RECALLS MR. HALE WHO THEN WORKED IN IT BUT MR. LYNCH SAYS HE AND SOME OTHERS KEPT RAISING THE ISSUE OF THE WORLD OUT THERE COMPANY STUDIES SHOWED THAT MEXICANS TRAVELING NORTH TO SHOP ACCOUNTED FOR AS MUCH AS SIXTY PERCENT OF SALES AT THE TWENTY TWO PENNEY STORES NEAR THE BORDER THE STORES WERE AMONG THE COMPANY'S TOP SELLERS ANOTHER POWERFUL ARGUMENT FOR LOOKING ABROAD WAS THAT THE U. S. WAS REALLY OVERSTORED MR. PRINDIVILLE SAYS AND PENNEY WAS ALREADY IN MOST BIG MARKETS BUT THE GROUNDWORK FOR THE COMPANY'S CHANGE IN ATTITUDE WAS LAID WITH A SNUB FROM LIZ CLAIBORNE INCORPORATED SQUEEZED BETWEEN DISCOUNTERS AND FASHIONABLE SPECIALTY STORES IN THE EARLY NINETEEN EIGHTIES MR. HOWELL WAS TRYING TO MOVE PENNEY UPSCALE BUT THE WOMEN'S APPAREL MAKER TURNED UP ITS NOSE AT PENNEY'S MIDDLE BROW IMAGE AS DID ESTEE LAUDER ELIZABETH ARDEN AND MANY OTHERS SO PENNEY FOCUSED ON TURNING ITS OWN PRIVATE LABELS HUNT CLUB WORTHINGTON STAFFORD SAINT JOHN'S BAY ARIZONA JEANS AND JACQUELINE FERRAR INTO BRAND NAMES IT DESIGNED EXCLUSIVE LINES TO ITS OWN SPECIFICATIONS PURSUED QUALITY BY REJECTING SUBSTANDARD GOODS AND ADVERTISED THE LINES THE EFFORT PAID OFF AT HOME AND ABROAD EVEN AS THE COMPANY WAS DUMPING ITS FAILED EUROPEAN VENTURES ITS PRIVATE BRANDS WERE STARTING TO APPEAL TO FOREIGN RETAILERS UNLIKE MOST MASS MERCHANDISERS PENNEY EXECUTIVES HAVE QUOTE CREATED SUCH A STRONG BRAND FRANCHISE HERE IT'S A BIG COMPETITIVE ADVANTAGE SAYS L. WAYNE HOOD A RETAIL ANALYST AT PRUDENTIAL SECURITIES PENNEY'S HOUSE BRANDS NOW FORM THE BACKBONE OF ITS OVERSEAS BUSINESS IN THE SPRING OF NINETEEN NINETY THE COMPANY FORMED A SMALL GROUP INITIALLY JUST MESSRS PRINDIVILLE LYNCH AND HALE TO STUDY FOREIGN PROSPECTS ONE MORE TIME MR. HOWELL SENT THE THREE MEN ON AN EYE OPENING TWENTY ONE DAY TOUR OF SEVEN COUNTRIES IN EAST BERLIN SHORTLY AFTER THE WALL FELL YOU'D LOOK IN A STORE WINDOW AND SEE ONE SHIRT SITTING THERE WITH DUST ON IT MR. LYNCH SAYS AT AN ENCLOSED MALL NEAR ISTANBUL THE THREE MEN SAW JUST HOW POORLY LOCAL RETAILERS ARRANGED RELATED PRODUCTS SUCH AS LINGERIE AND WOMEN'S CLOTHING THEY HAD LINGERIE NEXT TO PLUMBING EQUIPMENT MR. LYNCH RECALLS ALL OVER EUROPE THEY NOTED THE LACK OF COORDINATED HOME FURNISHINGS BACK IN TEXAS THEY REPORTED THAT PENNEY WAS LEAGUES AHEAD IN MARKETING SOPHISTICATION IN HOW TO DISPLAY PRODUCTS HOW TO LOCATE AISLES TO DIRECT AND TAKE ADVANTAGE OF CUSTOMER TRAFFIC HOW TO GROUP PRODUCTS HOW IN SHORT TO DEVELOP AN ENVIRONMENT THAT INVITES THE CUSTOMER TO SHOP MR. LYNCH SAYS MR. HOWELL AND SENIOR MANAGERS DECIDED TO TRY AGAIN BUT THIS TIME PENNEY WOULDN'T JUST GO IN AND BUY EXISTING RETAIL CHAINS IN FACT IT AVOIDS BUYING PROPERTY AT ALL IT WOULD LINK UP WITH LOCAL PARTNERS WHO WOULD KNOW FOR EXAMPLE THAT CHILEAN MEN CONSIDER SHORT PANTS SUITABLE ONLY FOR BOYS AND THAT ABU DHABI WOMEN DESPITE WEARING FULL LENGTH ROBES OUTDOORS LIKE PARTY DRESSES AND IT WOULD TAILOR ITS RETAILING TO EACH COUNTRY WHILE BANKING ON WHAT IT CONSIDERED ITS STRONG SUITS PRIVATE LABELS AND MERCHANDISE PRESENTATION SO PENNEY INSISTED THAT LIWA TRADING A LICENSEE THAT OPENED ITS FIRST PENNEY COLLECTION STORE IN DUBAI FIFTEEN MONTHS AGO AND PLANS TEN MORE STORES IN THE MIDEAST BY NINETEEN NINETY EIGHT SEND PEOPLE TO DALLAS TO LEARN PENNEY'S MERCHANDISING TRAINING AND ACCOUNTING METHODS LIWA NOT ONLY HAD TO USE PENNEY'S STORE FIXTURES BUT ALSO HAD TO HIRE ITS CONTRACTOR TO INSTALL THEM MR. HALE SAYS SEVERAL TIMES A YEAR HE ADDS PENNEY INSPECTS FOREIGN STORES TO MAKE SURE THAT THEIR DISPLAYS STAY WITHIN ITS GUIDELINES THE LICENSEES MR. PRINDIVILLE SAYS MUST AGREE TO REPLICATE THE WAY THE MERCHANDISE IS PRESENTED IN THE U. S. PENNEY'S INITIAL LIST OF THIRTY PROMISING COUNTRIES WAS WHITTLED TO TWENTY AFTER ITS EXECUTIVES GAUGED THEIR POLITICAL AND ECONOMIC STABILITY WHICH ELIMINATED MUCH OF THE EAST BLOC ABILITY TO REPATRIATE PROFITS ECONOMIC GROWTH AND DEMOGRAPHICS EVENTUALLY THE COMPANY SETTLED ON FOUR FUNDAMENTAL STRATEGIES IN QUOTE UNDERSTORED QUOTE COUNTRIES WHERE REAL ESTATE WAS AFFORDABLE LAWS ALLOWED FOREIGN OWNERSHIP AND LABOR AND CONSTRUCTION REGULATIONS WOULDN'T HAMSTRING EXPANSION PENNEY WOULD OPEN AND OPERATE STORES ITSELF IN MORE SATURATED MARKETS OR WHERE REGULATIONS OR OTHER PROBLEMS MAKE IT TOO TOUGH TO RUN ITS OWN STORES PENNEY WOULD LICENSE LOCAL RETAILERS TO OPERATE J. C. PENNEY COLLECTION STORES WHICH SELL ITS BRANDED APPAREL AND OTHER SOFT GOODS IN STILL TOUGHER MARKETS SUCH AS SINGAPORE AND JAPAN WHERE HIGH PROPERTY COSTS AND REGULATIONS MAKE IT ALMOST IMPOSSIBLE TO BUILD LARGE STORES PENNEY WOULD LICENSE OTHER RETAILERS TO OPERATE IN STORE SHOPS SELLING SPECIFIC BRANDED LINES SUCH AS THE HUNT CLUB SHOP IN ROBINSON'S DEPARTMENT STORE IN SINGAPORE AND IN PLACES WITH STRONG CONSUMER DEMAND BUT INSURMOUNTABLE BARRIERS PENNEY WOULD SELL THROUGH CATALOGS USUALLY DISTRIBUTING GOODS THROUGH A THIRD PARTY THAT WOULD TAKE ORDERS BUY THE GOODS FROM PENNEY IN THE U. S. AND SHIP THEM MEXICO REPRESENTS EASILY THE BIGGEST EFFORT AND BIGGEST GAMBLE BY LATE NINETEEN NINETY SIX PENNEY PLANS TO OPERATE FOUR STORES IN MEXICO CITY AND ONE EACH IN GUADALAJARA MONTERREY AND LEON THE STORES WILL AVERAGE ONE HUNDRED SIXTY FIVE THOUSAND SQUARE FEET COMPARABLE TO PENNEY'S LARGEST U. S. STORES AND UNLIKE COMPETITORS SUCH AS KMART CORPORATION PRICE SLASH COSTCO INCORPORATED AND WAL MART PENNEY DECIDED THAT IT DOESN'T NEED A LOCAL PARTNER IN MEXICO BASED ON OUR EXPERIENCE ON THE BORDER MR. PRINDIVILLE SAYS WE FELT LIKE WE'D BE ABLE TO GO IN AND RUN STORES JUST LIKE WE RUN THEM IN CALIFORNIA OR ANY OTHER PLACE SUCH TALK REEKS OF HUBRIS TO SOME ANALYSTS I THINK YOU'RE MAKING A MISTAKE IN MEXICO WHEN YOU DON'T JOINT VENTURE WITH LOCAL PARTNERS SAYS DAVID M. M. ROSEN WHO DIRECTS EMERGING MARKETS RESEARCH AT KIDDER PEABODY AND COMPANY PARTICULARLY WITH SOMEONE WHO HAS KNOWLEDGE OF CREDIT AND THE EXTENSION OF CREDIT IN MEXICO SALES ON CREDIT ARE EXPECTED TO BOOM FROM THE CURRENT FIVE PERCENT OF MEXICAN RETAIL VOLUME AS THE HIGH INTEREST RATES ON CREDIT CARDS CONTINUE TO DROP PENNEY PLANS TO ISSUE CREDIT CARDS IN MEXICO AND MR. ROSEN NOTES THAT MEXICO'S CREDIT AND DISCLOSURE LAWS DIFFER SIGNIFICANTLY FROM THOSE IN THE U. S. AND THAT THE COUNTRY LACKS ANY ESTABLISHED AGENCIES THAT CAN INSTANTLY CHECK CREDIT RECORDS KENNETH RUSSO PENNEY'S VICE PRESIDENT OF SOURCING SAYS THE COMPANY HAS COMPILED MARKETING STUDIES FOCUS GROUP REPORTS AND SURVEYS THAT INDICATE THE MEXICAN CONSUMER IS VERY FAMILIAR WITH OUR U. S. PRODUCT AND WILL DEMAND IT HE SAYS SEVENTY FIVE PERCENT OF THE MERCHANDISE PENNEY SELLS IN THE U. S. WILL BE STOCKED IN ITS MEXICAN STORES THE REST WILL BE PURCHASED IN MEXICO THE COMPANY SAYS IT WILL GAIN ANY LOCAL EXPERTISE IT NEEDS THROUGH THE DOZENS OF PROSPECTIVE MEXICAN MANAGERS IT IS TRAINING AT ITS HEADQUARTERS DUBBED THE PENNEYTENTIARY BY SOME WAGS PENNEY EXPECTS SALES AT ITS MEXICAN STORES TO FAR SURPASS ITS U. S. AVERAGE OF ONE HUNDRED THIRTY SEVEN DOLLARS A SQUARE FOOT SOME ANALYSTS ALSO PREDICT HIGHER PROFIT MARGINS IN MEXICO AND PENNEY WON'T HAVE TO SPLIT PROFITS WITH A JOINT VENTURE PARTNER PENNEY ADDS THAT IT HAS MINIMIZED THE RISK BY LEASING INSTEAD OF OWNING ITS BUILDINGS KIDDER'S MR. ROSEN HOWEVER BELIEVES MEXICO ALREADY HAS TOO MANY STORES FOR THE ELEVEN MILLION UPPER INCOME CUSTOMERS PENNEY WANTS PREPARING FOR THE POST NAFTA ONSLAUGHT MEXICAN DEPARTMENT STORES HAVE INCREASED THEIR SQUARE FOOTAGE THIRTY PERCENT IN THE PAST THREE YEARS AND ARE STILL EXPANDING HE ADDS PENNEY HE SAYS IS WALKING INTO WHAT I CONSIDER THE MOST COMPETITIVE SEGMENT OF THE MARKET RIGHT NOW OVERALL PENNEY'S OVERSEAS EFFORTS ARE STILL BUT A BLIP ON THE RADAR SCREEN FOR A COMPANY WITH ANNUAL SALES OF ABOUT EIGHTEEN BILLION DOLLARS THE COMPANY DOESN'T EVEN REPORT INTERNATIONAL SALES FIGURES AND WON'T PROJECT FUTURE FOREIGN SALES BUT BASED ON SALES AT STORES ALONG THE U. S. MEXICO BORDER SOME ANALYSTS PREDICT THAT PENNEY'S SEVEN PLANNED MEXICAN UNITS WILL EACH GENERATE MORE THAN THIRTY THREE MILLION DOLLARS IN ANNUAL SALES MR. LYNCH WON'T PROJECT HOW FAR ALL THIS EXPANSION WILL GO CITING THE UNCERTAINTIES OF OVERSEAS OPERATIONS HE NOTES THE ABANDONMENT OF A PLANNED ABU DHABI STORE BECAUSE THE SITE LACKS PARKING SPACE AND A SIX MONTH DELAY IN OPENING A MONTERREY STORE BECAUSE OF CONSTRUCTION PROBLEMS QUOTE THINGS KEEP CHANGING YOU HAVE TO BE ADAPTABLE PATIENT AND WE'RE BEING EXTREMELY CAUTIOUS MR. LYNCH SAYS WE'RE TAKING THE LONG TERM VIEW DAVID KAY PREVIOUSLY WAS AN OFFICIAL FOR THE INTERNATIONAL ATOMIC ENERGY AGENCY IN VIENNA IN AN ARTICLE YESTERDAY ABOUT INSPECTIONS OF NORTH KOREA'S NUCLEAR SITES MR. KAY WAS INCORRECTLY IDENTIFIED AS A FORMER ANALYST FOR THE CENTRAL INTELLIGENCE AGENCY MYCOGEN CORPORATION SAID IT EXPECTS TO BE PROFITABLE THIS YEAR FOLLOWING A RESTRUCTURING OF THE COMPANY A DECEMBER TWENTY THIRD ENTERPRISE ARTICLE QUOTED ANALYSTS AS INDICATING THAT THE SAN DIEGO BIOTECHNOLOGY COMPANY WOULDN'T BE PROFITABLE IN NINETEEN NINETY FOUR ATLANTIC RICHFIELD COMPANY'S VASTAR RESOURCES INCORPORATED UNIT WILL RECEIVE THE PROCEEDS FROM A PROPOSED INITIAL PUBLIC OFFERING OF AS MUCH AS SEVENTEEN POINT SEVEN PERCENT OF VASTAR STOCK OUTSTANDING AN ARTICLE YESTERDAY INCORRECTLY STATED THAT ARCO WOULD RECEIVE THE PROCEEDS GLASER CAPITAL CORPORATION CINCINNATI WAS THE LEAD UNDERWRITER FOR THE RECENTLY COMPLETED COMMON STOCK OFFERING OF FUTURE HEALTHCARE INCORPORATED ALSO BASED IN CINCINNATI AN ARTICLE WEDNESDAY INCORRECTLY IDENTIFIED THE LEAD UNDERWRITER AS MONNESS CRESPI HARDT AND COMPANY NEW YORK GOLD FUTURES PRICES LEAPED HIGHER SPURRED BY THE HEAVY BUYING OF COMMODITY FUNDS AND STRONG PERFORMANCE OF OTHER COMMODITY MARKETS AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY SETTLED AT THREE HUNDRED EIGHTY THREE DOLLARS AND SIXTY CENTS AN OUNCE UP FOUR DOLLARS AND SIXTY CENTS ON THE DAY WHILE THE PRICE OF THE MARCH SILVER FUTURES CONTRACT ROSE ELEVEN POINT FIVE CENTS TO FIVE POINT ONE THREE FIVE DOLLARS AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE APRIL PLATINUM WAS UP FOUR DOLLARS AND THIRTY CENTS TO THREE HUNDRED EIGHTY SIX DOLLARS AN OUNCE YESTERDAY'S RALLY IN PRECIOUS METALS MARKETS CAME AFTER STEEP PRICE DROPS THROUGHOUT MOST OF LAST WEEK AND IN EARLY TRADING YESTERDAY IT APPEARED PRICES WERE HEADED LOWER AGAIN AT ONE POINT THE APRIL GOLD CONTRACT WAS DOWN ONE DOLLAR AND FIFTY CENTS AT THREE HUNDRED SEVENTY SEVEN DOLLARS AND FIFTY CENTS AN OUNCE LAST WEEK'S DROP WHICH SAW THE PRICE OF THE APRIL CONTRACT FALL FROM ABOUT THREE HUNDRED NINETY DOLLARS AN OUNCE TO LESS THAN THREE HUNDRED EIGHTY DOLLARS AN OUNCE HAD PUSHED THE MARKET TOO LOW SAID FRED DEMLER METALS ECONOMIST FOR E. D. AND F. MAN QUOTE THE MARKET WAS DEFINITELY OVERSOLD QUOTE MR. DEMLER SAID IT WAS DUE FOR A CORRECTION PROVIDING A FOUNDATION OF SUPPORT FOR PRECIOUS METALS PRICES WERE COMMODITY FUNDS THE MANAGED POOLS OF INVESTORS' MONEY THAT WIELD SO MUCH INFLUENCE IN TODAY'S COMMODITY MARKETS ANALYSTS SAID IT WAS A TECHNICAL REVERSAL SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH MANY OF THE VERY HEAVY FUND SELLERS FROM LATE LAST WEEK REVERSED COURSE THE MARKET DERIVED ADDITIONAL STRENGTH FROM A RALLY IN THE KNIGHT RIDDER COMMODITY RESEARCH BUREAU INDEX OF TWENTY ONE COMMODITY FUTURES CONTRACTS THE INDEX SETTLED AT TWO HUNDRED TWENTY FIVE POINT FIVE FIVE UP ZERO POINT FIVE FIVE ON THE DAY GOLD AND THE C. R. B. INDEX TEND TO MOVE MORE OR LESS IN TANDEM AND OPPOSITE THE PERFORMANCE OF BOND PRICES THE RECENT DROPS IN GOLD PRICES ARE A COUNTER TREND MOVE THAT IS AGAINST THE LONG TERM UPWARD TREND MR. O'NEILL SAID THE LONG TERM FUNDAMENTAL PICTURE IS QUITE CONSTRUCTIVE FOR THE METALS ONE FACTOR THAT MAY PROVIDE LONG TERM SUPPORT FOR PRECIOUS METALS PRICES ANALYSTS SAID IS THE JAPANESE ECONOMIC STIMULUS PACKAGE UNVEILED OVER THE WEEKEND WHICH PROVIDES FOR LOWER TAXES AND SPENDING INCENTIVES THAT MAY ENHANCE JAPANESE PURCHASES OF GOLD GRAINS AND SOYBEANS WHEAT PRICES JUMPED ON RUMORS THAT CHINA IS INTERESTED IN BUYING AN ADDITIONAL EIGHTEEN POINT FOUR MILLION BUSHELS OF SUBSIDIZED U. S. WHEAT IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY JUMPED SEVEN POINT FIVE OH CENTS A BUSHEL TO SETTLE AT THREE POINT SEVEN ONE SEVEN FIVE DOLLARS A BUSHEL CHINA BOUGHT ABOUT THIRTY MILLION BUSHELS OF U. S. WHEAT IN JANUARY CHINA'S CONTINUING INTEREST IGNITED SPECULATION THAT A DROUGHT IN ONE WHEAT PRODUCING PROVINCE IS SPREADING THE RALLY FOLLOWS A BIG SLUMP IN WHEAT PRICES OVER THE PAST FEW WEEKS CORN AND SOYBEAN PRICES SETTLED MIXED ENERGY PETROLEUM FUTURES PRICES DRIFTED LOWER ON LITTLE NEWS ONLY HEATING OIL FOR FEBRUARY DELIVERY SHOWED GAINS ON THE NEW YORK MERCANTILE EXCHANGE CONTINUED COLD WEATHER HELPED TO SUPPORT PRICES OF THE FEBRUARY HEATING OIL CONTRACT WHICH ROSE ONE CENT A GALLON TO SETTLE AT FIFTY THREE POINT SEVEN CENTS BUT PRICES OF HEATING OIL FOR MARCH OR LATER DELIVERY DROPPED UNLEADED GASOLINE PRICES FELL AS TRADERS SOLD THE EXPIRING FEBRUARY CONTRACT TO ROLL POSITIONS INTO MARCH FUTURES ALSO WEATHER RESTRICTED DRIVING OVER MUCH OF THE U. S. MAY HAVE CURBED GASOLINE DEMAND THE FEBRUARY CONTRACT WAS DOWN ZERO POINT NINE TWO CENT A GALLON TO FORTY TWO POINT FIVE FOUR CENTS CRUDE OIL FOR MARCH DELIVERY SETTLED FIFTEEN CENTS LOWER AT FIFTEEN DOLLARS AND NINETEEN CENTS A BARREL EARL W. POWELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS PLASTICS CONCERN ASSUMED THE ADDITIONAL TITLE OF PRESIDENT MR. POWELL FIFTY FIVE YEARS OLD SUCCEEDS H. RANDALL LITTEN FIFTY SEVEN WHO WAS NAMED CHIEF EXECUTIVE OF THE ATLANTIS FILMS UNIT MASTERCARD INTERNATIONAL INCORPORATED SAID H. EUGENE LOCKHART A BRITISH BANKER TURNED CONSULTANT HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OF THE CREDIT CARD CONSORTIUM MR. LOCKHART FORTY THREE YEARS OLD SUCCEEDS ALEX HART WHO RESIGNED LAST WEEK TO JOIN FAST GROWING ADVANTA CORPORATION MR. LOCKHART JOINS THE CONSORTIUM FROM FIRST MANHATTAN CONSULTING GROUP ONE OF THE TOP BANK CONSULTING FIRMS IN THE U. S. WHERE HE WAS AN EXECUTIVE VICE PRESIDENT SPECIALIZING IN RETAIL BANKING AND CREDITCARD STRATEGIES MR. LOCKHART HAS BEEN AN ADVISER TO MASTERCARD OVER THE PAST YEAR AND A BOARD MEMBER SINCE NINETEEN NINETY PRIOR TO FIRST MANHATTAN MR. LOCKHART SPENT SIX YEARS AT MIDLAND BANK P. L. C. INCLUDING THE POST OF CHIEF EXECUTIVE FOR UNITED KINGDOM BANKING OPERATIONS HE HAD RESPONSIBILITY FOR ALL DOMESTIC BANKING INCLUDING CREDIT AND DEBIT CARDS AND RETAIL BANKING MIDLAND IS THE U. K.'S THIRDLARGEST CREDIT CARD ISSUER MR. LOCKHART TAKES THE HELM AT A TIME OF CUTTHROAT COMPETITION BETWEEN MASTERCARD AND ITS LARGER RIVAL VISA U. S. A. FOR NEW MARKETS WHILE MASTERCARD HAS GAINED ON ITS RIVAL DOMESTICALLY IT STILL LAGS BEHIND ON A GLOBAL BASIS WITH CONSUMERS IN THE U. S. FLUSH WITH CREDIT CARDS BOTH COMPANIES ARE PUSHING INTO THE CORPORATE CREDIT CARD MARKET AS WELL AS SO CALLED DEBIT CARDS QUOTE IN GENE WE SAW SOMEONE WHO HAD AN UNUSUAL COMBINATION OF LINE RETAIL BANKING EXPERIENCE AS WELL AS EXPERIENCE IN INTERNATIONAL CONSUMER PAYMENTS AND TECHNOLOGY QUOTE SAID NORMAN J. TICE CHAIRMAN OF MASTERCARD'S BOARD AND EXECUTIVE VICE PRESIDENT OF BOATMEN'S NATIONAL BANK OF SAINT LOUIS THE CLINTON ADMINISTRATION'S PRACTICALLY COMPLETE SUPERFUND PLAN CLEARED A MAJOR HURDLE WHEN IT WON PRAISE FROM THE CHAIRMAN OF AN INFLUENTIAL PRIVATE SECTOR PANEL THE COMMENTS BY JONATHAN LASH CHAIRMAN OF THE NATIONAL COMMISSION ON SUPERFUND APPEAR TO REMOVE A POTENTIAL OBSTACLE RAISED BY FOUR SENATORS LIKELY TO PLAY AN IMPORTANT ROLE IN REWRITING THE SUPERFUND LAW THE FOUR SENATORS DEMOCRATS MAX BAUCUS OF MONTANA AND FRANK LAUTENBERG OF NEW JERSEY AND REPUBLICANS DAVID DURENBERGER OF MINNESOTA AND JOHN CHAFEE OF RHODE ISLAND WROTE PRESIDENT CLINTON LAST MONTH URGING THAT THE ADMINISTRATION PROPOSAL INCORPORATE THE FINDINGS OF THE COMMISSION WHICH IS SPONSORED BY THE KEYSTONE CENTER A COLORADO BASED NONPROFIT GROUP THE CLINTON SUPERFUND PLAN COULD GO UP TO CAPITOL HILL AS EARLY AS THIS WEEK QUOTE THERE IS NOW CONSENSUS ON THE CHANGES TO THE PROGRAM QUOTE SAID CAROL BROWNER ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY WHAT WE HAVE IS A PROPOSAL THAT MANY ARE GOING TO BE ABLE TO STAND BEHIND MR. LASH WHO IN RECENT WEEKS HAS BEEN INVOLVED IN INTENSE NEGOTIATIONS WITH THE ADMINISTRATION OVER WORDING IN THE SUPERFUND BILL SAID YESTERDAY IT APPEARS THAT IT WILL BE A VERY CONSTRUCTIVE PROPOSAL AND A GOOD STARTING POINT ASKED WHETHER REPRESENTATIVE AL SWIFT D. WASHINGTON CHAIRMAN OF THE HOUSE HAZARDOUS MATERIALS SUBCOMMITTEE WOULD INTRODUCE A VERSION OF THE KEYSTONE CENTER'S PLAN TO COMPETE WITH THE ADMINISTRATION PLAN A MOVE THE LAWMAKER IS SAID TO HAVE CONTEMPLATED MR. LASH SAID I DON'T EXPECT THERE TO BE AN ALTERNATIVE BILL SENATOR BAUCUS IS CHAIRMAN OF THE SENATE ENVIRONMENT AND PUBLIC WORKS COMMITTEE SENATOR LAUTENBERG IS CHAIRMAN OF THE PANEL'S SUPERFUND SUBCOMMITTEE SENATORS CHAFEE AND DURENBERGER ARE THE RANKING REPUBLICANS ON THE TWO PANELS MR. LASH IN ADDITION TO BEING CHAIRMAN OF THE KEYSTONE PANEL IS PRESIDENT OF THE WORLD RESOURCES INSTITUTE AND CO CHAIRMAN OF THE PRESIDENT'S COMMISSION ON SUSTAINABLE DEVELOPMENT THE SUPERFUND PROPOSAL BEING READIED BY THE ADMINISTRATION WOULD ALTER THE HAZARDOUS WASTE LAW IN SEVERAL SIGNIFICANT RESPECTS IT WOULD AIM TO SUBSTANTIALLY REDUCE SUPERFUND RELATED LITIGATION BY CREATING A NEW FUND TO SETTLE LAWSUITS BETWEEN POLLUTING BUSINESSES AND THEIR INSURERS OVER WHO IS RESPONSIBLE TO PAY FOR CLEANUP OF SITES WHERE DUMPING OCCURRED BEFORE NINETEEN EIGHTY SIX REVENUE FOR THE FUND DRAWN FROM A NEW TAX ON INSURERS WOULD TOTAL FIVE HUNDRED MILLION DOLLARS IN EACH OF THE FIRST TWO YEARS OF THE LAW'S IMPLEMENTATION AND AS MUCH AS SEVEN HUNDRED MILLION DOLLARS IN EACH OF THE FOLLOWING THREE YEARS BECAUSE DIFFERENT STATES HAVE DIFFERENT LAWS AND LEGAL PRECEDENTS ABOUT HOW RESPONSIBLE INSURERS ARE FOR CLEANUP COSTS POLLUTING BUSINESSES SUING THEIR INSURERS COULD GET FROM THE FEDERAL GOVERNMENT TWENTY PERCENT OF CLEANUP COSTS IF THEY ARE SUING IN A STATE THAT GENERALLY FAVORS INSURERS FORTY PERCENT IN A STATE THAT FAVORS NEITHER SIDE AND SIXTY PERCENT IN A STATE THAT FAVORS POLLUTING BUSINESSES UNDER THE PROPOSAL DETERMINING WHICH STATE FITS WHICH CATEGORY WOULD BE LEFT TO THE REGULATORY PROCESS REFLECTING A LONGSTANDING CONSENSUS BETWEEN THE E. P. A. AND THE BUSINESS COMMUNITY THE SUPERFUND PLAN WILL ALLOW FEDERAL OFFICIALS GREATER FLEXIBILITY TO APPROVE DIFFERENT LEVELS OF CLEANUP FOR A SUPERFUND SITE DEPENDING ON WHAT THAT SITE'S FUTURE USE PARKING LOT OR PLAYGROUND IS EXPECTED TO BE BASED ON INPUT FROM COMMUNITY GROUPS IN A CONCESSION TO THE KEYSTONE GROUP THE ADMINISTRATION ALSO HAS AGREED TO MOVE MORE QUICKLY ON SO CALLED HOT SPOTS OR AREAS WITHIN WASTE SITES WHERE DANGER FROM CONTAMINATION IS PARTICULARLY HIGH OVERALL THE ADMINISTRATION ESTIMATES THE CHANGES IN CLEANUP STANDARDS WILL REDUCE CLEANUP COSTS BY TWENTY FIVE PERCENT IN ADDITION PURCHASERS OF ABANDONED URBAN PROPERTIES THAT HAVE ALREADY BEEN DESIGNATED SUPERFUND SITES WOULD BE EXEMPTED FROM SUPERFUND LIABILITY A MOVE THAT IS AIMED AT EASING FINANCIAL BARRIERS TO REVITALIZING URBAN AREAS V. F. CORPORATION COMPLETED ITS ACQUISITION OF NUTMEG INDUSTRIES INCORPORATED TAMPA FLORIDA FOR ABOUT THREE HUNDRED TWENTY FIVE MILLION DOLLARS CENCALL COMMUNICATIONS CORPORATION ACQUIRED SAINT LOUIS ELECTRONICS INCORPORATED R. A. MATHEIS A AND E. ELECTRONICS CORPORATION AND WARNER COMMUNICATIONS WHICH IS NOT AFFILIATED WITH TIME WARNER INCORPORATED FOR THIRTY MILLION DOLLARS IN CASH AND STOCK B. H. C. COMMUNICATIONS INCORPORATED DIRECTORS AUTHORIZED PURCHASE OF AS MUCH AS ONE POINT FIVE MILLION CLASS A COMMON SHARES IN ADDITION TO ONE HUNDRED FORTY EIGHT THOUSAND SHARES REMAINING UNDER A PREVIOUS AUTHORIZATION B. H. C. HAS SEVEN POINT SIX MILLION CLASS A SHARES OUTSTANDING WHILE CHRIS CRAFT INDUSTRIES INCORPORATED OWNS EIGHTEEN MILLION CLASS B. COMMON SHARES CHAMPION ENTERPRISES INCORPORATED AGREED TO PURCHASE CLOSELY HELD DUTCH HOUSING INCORPORATED FOR FORTY MILLION DOLLARS AMERICAN MEDICAL RESPONSE INCORPORATED SIGNED A DEFINITIVE AGREEMENT TO PURCHASE NINE HUNDRED ELEVEN EMERGENCY SERVICES INCORPORATED MODESTO CALIFORNIA TERMS WEREN'T DISCLOSED FIRST FEDERAL SAVINGS BANK OF COLORADO OPENED A BANK BRANCH IN GREENWOOD VILLAGE COLORADO GIVING THE COMPANY A TOTAL OF TWENTY FOUR BRANCHES ROBERT A. HELPERT FIFTY YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER OF THIS MUSIC AND VIDEO RETAILER BOTH POSITIONS ARE NEW MR. HELPERT WAS MOST RECENTLY PRESIDENT AND CHIEF OPERATING OFFICER OF THE NEWS AND GIFT STORE DIVISION OF W. H. SMITH INCORPORATED A UNIT OF W. H. SMITH P. L. C. MARC RICH HAS SUCCEEDED IN MAINTAINING AND BUILDING A SUCCESSFUL INTERNATIONAL COMMODITY AND INVESTMENT BUSINESS DESPITE BEING A FUGITIVE FROM U. S. JUSTICE AND FACING CONTINUING LAWSUITS FROM HIS FORMER WIFE MR. RICH FLED THE U. S. IN NINETEEN EIGHTY THREE WITH HIS PARTNER PINCUS GREEN JUST BEFORE THEY WERE INDICTED ON TAX EVASION AND RACKETEERING CHARGES RELATING TO AN ALLEGED OIL TRADING SCHEME NOW MR. RICH SAYS HE WANTS TO SETTLE U. S. CRIMINAL CHARGES OUTSTANDING AGAINST HIM HE ALSO SEEMS RESIGNED TO HAVING TO FACE A LONG FIGHT WITH HIS EX WIFE DENISE WHO HAS PURSUED HIM IN THE COURTS QUOTE IT WILL PROBABLY TAKE YEARS TO SETTLE QUOTE THE FIFTY NINE YEAR OLD MR. RICH SAYS IN AN INTERVIEW REFERRING TO THE LEGAL DISPUTE WITH HIS FORMER SPOUSE THE FORMER MRS. RICH IS SEEKING HALF OF HER HUSBAND'S ASSETS WHICH HAVE BEEN ESTIMATED TO TOTAL AS MUCH AS ONE BILLION DOLLARS MR. RICH'S EX WIFE AND HER FAMILY PROVIDED SOME OF THE SEED CAPITAL WHEN IN NINETEEN SEVENTY FOUR MR. RICH LEFT PHILIPP BROTHERS AND SET UP MARC RICH AND COMPANY SHE IS NO LONGER A STOCKHOLDER ACCORDING TO MR. RICH SHE REDEEMED HER SHARES IN DECEMBER NINETEEN NINETY HE SAYS AS CHAIRMAN OF MARC RICH AND COMPANY HOLDING A. G. BASED IN THE NEARBY TOWN OF ZUG SWITZERLAND MR. RICH OVERSEES HIS TWENTY SEVEN POINT FIVE PERCENT STAKE IN THE OPERATING COMPANY MARC RICH AND COMPANY IT NOW HAS ANNUAL TURNOVER OF THIRTY BILLION DOLLARS FROM TRADING CRUDE OIL PETROLEUM PRODUCTS METALS MINERALS AND AGRICULTURAL COMMODITIES MR. RICH SAYS THAT HE HOPES HIS DECISION TO STEP DOWN LAST YEAR AS CHIEF EXECUTIVE OFFICER OF MARC RICH AND COMPANY MAY MAKE IT EASIER TO NEGOTIATE A SETTLEMENT OF THE U. S. CHARGES AGAINST HIM IT HAS BECOME MR. RICH'S CUSTOM TO ATTEND THE ANNUAL WORLD ECONOMIC FORUM IN THIS ALPINE RESORT OF DAVOS THE GATHERING OF WORLD POLITICAL AND BUSINESS LEADERS WHICH ENDS TONIGHT PROVIDES MR. RICH AN OPPORTUNITY TO MEET WITH OLD FRIENDS AND GET AN ANNUAL TASTE OF THE WORLD OF INTERNATIONAL FINANCIAL CIRCLES THAT HE HASTILY LEFT MORE THAN A DECADE AGO BIO IMAGING TECHNOLOGIES INCORPORATED WEST TRENTON N. J. TERRENCE P. BRENNAN FORTY ONE YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS PROVIDER OF BIOMEDICAL IMAGE PROCESSING AND DATAMANAGEMENT SERVICES THE DUTIES MR. BRENNAN ASSUMES WERE PREVIOUSLY SHARED BY JAMES J. CONKLIN FIFTY ONE WHO WAS RECENTLY NAMED CHIEF SCIENTIFIC OFFICER AND WHO WILL REMAIN CHAIRMAN AND WILLIAM J. FITZPATRICK FIFTY ONE WHO RESIGNS AS PRESIDENT AND CHIEF OPERATING OFFICER BUT REMAINS AT THE COMPANY THROUGH THE TRANSITION THE CHIEF OPERATING OFFICER'S POSITION WON'T BE FILLED MR. BRENNAN IS FORMER PRESIDENT OF RESEARCH DATA CORPORATION EDWARD F. HEIL WAS NAMED A DIRECTOR OF THIS CHEMICAL WASTE DISPOSAL CONCERN MR. HEIL FIFTY YEARS OLD AND TWENTY PERCENT SHAREHOLDER IN THE COMPANY SUCCEEDS WILLIAM E. PRACHER WHO RESIGNED FROM THE BOARD IN JUNE ALSO HARRY O. NICODEMUS THE FOURTH FORTY FIVE WAS NAMED A VICE PRESIDENT OF THE COMPANY A NEW POSITION HE WILL REMAIN ITS CONTROLLER NORTH CAROLINA MUSEUM OF ART TWO THOUSAND ONE HUNDRED TEN BLUE RIDGE RD THROUGH APRIL TWENTY FOURTH NINE HUNDRED NINETEEN EIGHT HUNDRED THIRTY THREE TO NINETEEN THIRTY FIVE MORE THAN ONE HUNDRED PRINTS BY THIS SEVENTEENTH CENTURY MASTER INCLUDING ALL FIFTY OF HIS ETCHINGS GEORGIA MUSEUM OF ART UNIVERSITY OF GEORGIA THROUGH MARCH THIRTEENTH DURING THE LATE EIGHTEENTH AND EARLY NINETEENTH CENTURIES INFLUENCED BY ARCHAEOLOGICAL EXCAVATIONS AND A REVIVAL OF INTEREST IN GRECO ROMAN CULTURE MANY ARTISTS RECALLED THOSE NOBLE DAYS IN CRISP DRAWINGS BASED ON STATUES AND STUDIO NUDES INCLUDED ARE WORKS BY ANTON RAPHAEL MENGS BERTEL THORVALDSEN BENJAMIN WEST PIERRE PAUL PRUD'HON AND OTHERS THIS SELECTION OF ABOUT FORTY DOCUMENTS LETTERS AND MANUSCRIPTS FROM THE PIERPONT MORGAN LIBRARY'S OWN COLLECTION AND THE GILDER LEHRMAN COLLECTION INCLUDES A ONE THOUSAND SEVEN HUNDRED EIGHTY SIX LETTER BY GEORGE WASHINGTON CALLING FOR QUOTE SOME PLAN ADOPTED BY WHICH SLAVERY IN THIS COUNTRY MAY BE ABOLISHED BY SLOW SURE AND IMPERCEPTIBLE DEGREES QUOTE THERE ARE DOCUMENTS FROM THE MISSOURI COMPROMISE OF ONE THOUSAND EIGHT HUNDRED TWENTY AN ONE THOUSAND EIGHT HUNDRED THIRTY SEVEN LETTER BY JOHN QUINCY ADAMS DEPLORING A GAG RULE ON DISCUSSING ANTISLAVERY PETITIONS IN THE HOUSE AND RALPH WALDO EMERSON'S ONE THOUSAND EIGHT HUNDRED SIXTY SPEECH CONDEMNING THE HANGING OF ABOLITIONIST JOHN BROWN FIESTA ESPANOLA PRESENTS THREE ONEACT OPERAS BY SPANISH COMPOSER MANUEL DE FALLA THE FANTASY WORLD OF DON QUIXOTE IS BROUGHT TO LIFE WITH COLORFUL PUPPETS AND PAPIER MACHE FARM ANIMALS IN EL RETABLO DE MAESE PEDRO A GYPSY GIRL ATTEMPTS TO WIN BACK HER UNFAITHFUL LOVER IN EL AMOR BRUJO AND TOWERING PRISON BARS AND SURREAL PASSAGEWAYS SET THE STAGE FOR THE TALE OF A YOUNG WOMAN HURT BY HER LOVE FOR A WEALTHY AND DECEITFUL MAN IN LA VIDA BREVE BLISS HEBERT DIRECTS LEIF BJALAND CONDUCTS AND STAGE DESIGNS ARE BY ALLEN CHARLES KLEIN DADE COUNTY AUDITORIUM TWO THOUSAND NINE HUNDRED ONE W. FLAGLER SAINT FEBRUARY NINTH TWELVE FIFTEEN EIGHTEEN TWENTY AND TWENTY THREE LOCALLY THREE HUNDRED FIVE EIGHT HUNDRED FIFTY FOUR TO SEVEN THOUSAND EIGHT HUNDRED NINETY ELSEWHERE ONE EIGHT HUNDRED THOUSAND SEVEN HUNDRED FORTY ONE ONE THOUSAND TEN ANTHONY ROLFE JOHNSON AND THOMAS ALLEN WILL SING IN THE OPENING NIGHT PERFORMANCE OF A NEW PRODUCTION OF BENJAMIN BRITTEN'S DEATH IN VENICE BASED ON THE THOMAS MANN NOVELLA ABOUT LONELINESS AND LUST ON THE LIDO CO PRODUCED WITH THE ROYAL OPERA HOUSE COVENT GARDEN DEATH IN VENICE IS CONDUCTED BY DAVID ATHERTON AND DIRECTED BY COLIN GRAHAM LINCOLN CENTER BROADWAY BETWEEN SIXTY SECOND AND SIXTY FIVE STREETS FEBRUARY SEVENTH ELEVEN FIFTEEN EIGHTEEN TWENTY THREE AND TWENTY SIX TWO HUNDRED TWELVE THREE HUNDRED SIXTY TWO TO SIX THOUSAND IF YOU MISSED IT THE FIRST TIME AROUND THE SEASON HERE IS CLOSING AS IT OPENED WITH THE NEW FRANK GALATI SLASH DESMOND HEELEY PRODUCTION OF VERDI'S QUOTE LA TRAVIATA QUOTE JUNE ANDERSON ONCE AGAIN SINGS THE TITULAR TUBERCULAR WITH STUART NEILL AS ALFREDO AND ALEXANDRU AGACHE AS GERMONT BRUNO BARTOLETTI CONDUCTS RONALD E. ELMQUIST FORTY SEVEN YEARS OLD WAS NAMED PRESIDENT GLOBAL FOOD SERVICE DIVISION AND A VICE PRESIDENT OF THIS FOOD CONCERN MR. ELMQUIST PREVIOUSLY WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WHITE SWAN INCORPORATED ALSO A FOOD CONCERN HE FILLS NEW POSITIONS AT CAMPBELL AND WILL BE RESPONSIBLE FOR FOOD SERVICES BUSINESSES IN THE U. S. AND CANADA AS WELL AS THOSE OF THE PEPPERIDGE FARM BRAND DAVID W. JOHNSON CAMPBELL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID MR. ELMQUIST WAS CHOSEN TO LEAD AN AGGRESSIVE EFFORT TO INCREASE THE GLOBAL DIVISION'S BUSINESS INTERNATIONAL BUSINESS MACHINES CORPORATION HAS DECIDED TO FORGO THE RIGHT TO MANUFACTURE INTEL CORPORATION'S LATEST GENERATION CHIP THE PENTIUM FREEING I. B. M. TO PUT MORE RESOURCES BEHIND ITS RIVAL ENTRY IN AN EMERGING CHIP WAR THE POWERPC I. B. M. AND INTEL ANNOUNCED A NEW PACT YESTERDAY THAT AMOUNTS TO THE BOLDEST AND PERHAPS RISKIEST MOVE I. B. M. HAS YET MADE TO PUSH THE POWERPC CHIP INTO THE MARKET IT CLEARLY PITS I. B. M. AGAINST INTEL AS A COMPETITOR BY HAVING I. B. M. BACK AWAY FROM THE PENTIUM THE MOST POWERFUL AND LATEST ENTRY IN THE INTEL CHIP FAMILY THAT HAS LONG POWERED MOST PERSONAL COMPUTERS IF I. B. M. SUCCEEDS IT COULD SIGNIFICANTLY DAMAGE INTEL'S POSITION AS THE LEADING CHIP SUPPLIER TO THE P. C. INDUSTRY BUT BY FORGOING PRODUCTION RIGHTS FOR PENTIUM I. B. M. ALSO IS RUNNING THE RISK THAT THE P. C. MARKET COULD HEARTILY EMBRACE THE INTEL CHIP THAT WOULD LEAVE I. B. M. WITHOUT THE COST ADVANTAGES OF MAKING THE PENTIUM AND FORCE IT TO BUY AT A HIGHER COST DIRECTLY FROM INTEL QUOTE WE'VE MADE A COMMITMENT TO POWERPC QUOTE JAMES CANNAVINO I. B. M.'S TOP STRATEGIST SAID IN AN INTERVIEW WE JUST DIDN'T THINK IT WAS PRODUCTIVE FOR US TO MAKE PENTIUMS CURT ROHRMAN AN ANALYST FOR C. S. FIRST BOSTON INCORPORATED SAID AFTER I. B. M.'S ANNOUNCEMENT THERE WILL BE A CHIP WAR IN NINETEEN NINETY FOUR THERE'S NO DOUBT ABOUT IT ALL THE TROOPS ARE LINING UP IN A MUTUALLY BENEFICIAL RELATIONSHIP UP UNTIL NOW I. B. M. UNDER LICENSE WITH INTEL HAS MANUFACTURED ITS OWN INTEL CHIPS IT IS LESS EXPENSIVE THAN BUYING THE DEVICES FROM INTEL AND IT ENSURES AN ADEQUATE SUPPLY FOR I. B. M. FOR INTEL HOWEVER THE ARRANGEMENT ALSO ENSURED THAT THE WORLD'S LARGEST P. C. MAKER WOULD BE COMMITTED TO USING AN INTEL DESIGNED ARCHITECTURE ANDY GROVE INTEL'S PRESIDENT AND CHIEF EXECUTIVE SAID HE DOESN'T SEE THE NEW AGREEMENT CHANGING THE NATURE OF PAST AGREEMENTS I. B. M. IS OUR LARGEST CUSTOMER IT WAS BEFORE AND REMAINS SO NOW MR. GROVE SAID I. B. M. ARMONK N. Y. AND INTEL SANTA CLARA CALIFORNIA PLAN TO CONTINUE THAT RELATIONSHIP BUT THE AGREEMENT LEAVES OUT THE PENTIUM AND ALLOWS I. B. M. TO INCREASE ITS OWN PRODUCTION OF PENTIUM'S PREDECESSOR THE INTEL FOUR EIGHT SIX CHIP WHICH IS THE MOST POPULAR CHIP IN COMPUTERS TODAY I. B. M. NOW PLANS TO MAKE THE FOUR EIGHT SIX CHIP FOR FIFTY PERCENT OF ITS P. C. LINE COMPARED WITH TWENTY PERCENT UNDER THE OLD AGREEMENT LAST YEAR I. B. M. SHIPPED FOUR POINT THREE MILLION P. C.S WITH INTEL CHIPS AND EXPECTED TO INCREASE PRODUCTION BY ONE MILLION UNITS THIS YEAR MR. GROVE SAYS INTEL WILL BE ABLE TO MAKE THE TRANSITION TO PENTIUM CHIP PRODUCTION MORE QUICKLY NOW THAT I. B. M. HAS AGREED TO MAKE MORE FOUR EIGHT SIX CHIPS THUS DECREASING THE PRODUCTION DEMAND ON INTEL MR. CANNAVINO OF I. B. M. SAID THE COMPANY'S I. B. M. PERSONAL COMPUTER COMPANY UNIT ISN'T ABANDONING ITS COMMITMENT TO INTEL AND WILL BUY PENTIUM CHIPS AS DEMAND FOR HIGHER POWER COMPUTERS BASED ON THAT LINE EMERGES HE SAID I. B. M.'S RELATIONSHIP WITH INTEL IS QUOTE FRIENDLY SO FAR BUT WE'RE TOUGH COMPETITORS BUT THE NEW PACT CLEARLY SIGNALS THAT I. B. M. MAY BE BETTING AGAINST THE PENTIUM LINE MR. CANNAVINO SAID IT WOULD HAVE COST I. B. M. SEVERAL HUNDRED MILLION DOLLARS TO BUILD PLANTS FROM SCRATCH TO MAKE THE LATEST INTEL CHIP THE PENTIUM REQUIRES TWO TYPES OF MICROPROCESSOR TECHNOLOGY UNLIKE ANYTHING ELSE I. B. M. MAKES MR. CANNAVINO SAID ANALYSTS ALSO SAID THE PRICE WAR IS ALREADY BRINGING DOWN PENTIUM CHIP PRICES WHICH MAY HAVE PLAYED INTO I. B. M.'S THINKING CHIP PRICES COULD DROP SHARPLY AS VARIOUS COMPETITORS TAKE ON THE INTEL LINEAGE INCLUDING SILICON GRAPHICS INCORPORATED'S M. I. P. S. TECHNOLOGY UNIT AND DIGITAL EQUIPMENT CORPORATION'S ALPHA CHIP EFFORT AS WELL AS THE POWERPC EFFORT MOUNTED BY I. B. M. WITH PARTNERS MOTOROLA INCORPORATED AND APPLE COMPUTER INCORPORATED INTEL IS GOING TO BE IN THE DRIVER'S SEAT AND WILL LOWER THE PRICE OF PENTIUM LOWERING RETURN ON INVESTMENT FOR ANY PENTIUM CLONE OBSERVED RICHARD ZWETCHKENBAUM AN ANALYST AT INTERNATIONAL DATA CORPORATION BOSTON IN OTHER WORDS MR. ZWETCHKENBAUM SAID I. B. M. MAY HAVE DECIDED IT WASN'T WORTH THE INVESTMENT TO MAKE PENTIUM CHIPS BECAUSE INTEL WILL BE LEADING THE WAY IN SLASHING PRICES IN THE SHORT TERM PENTIUM CHIPS ARE STILL A SMALL PART OF THE MARKET ONLY ONE PERCENT OF ALL P. C.S SHIPPED WORLD WIDE LAST YEAR HAD PENTIUM MICROPROCESSORS COMPARED WITH FIFTY EIGHT PERCENT RUNNING ON THE FOUR EIGHT SIX CHIP MR. ZWETCHKENBAUM ESTIMATES INTEL HAS SAID IT EXPECTS FIFTEEN PERCENT OF ALL P. C.S SHIPPED THIS YEAR TO CONTAIN THE PENTIUM BUT IN THE LONG RUN I. B. M. FACES A SIGNIFICANT CHALLENGE THERE IS NO GUARANTEE THAT THE WORLD IS GOING TO WANT ITS POWERPC CHIP ONLY ONE PRODUCT THE R. S. SIX THOUSAND WORKSTATION HAS BEEN ANNOUNCED WITH THE POWERPC CHIP I. B. M. DOESN'T YET HAVE A DESKTOP OPERATING SYSTEM THE INTERNAL SOFTWARE THAT ACTS AS A COMPUTER'S TRAFFIC COP FOR THE POWERPC THAT WILL ENABLE IT TO RUN THE HOST OF SOFTWARE PROGRAMS THAT NOW RUN ON THE INTEL CHIPS MOREOVER INTEL AS THE LEADING CHIP SUPPLIER IN THE WORLD CONTROLS MOST OF THE MARKET OUT OF A TOTAL OF THIRTY SIX POINT ONE MILLION P. C.S SHIPPED LAST YEAR EIGHTY FOUR PERCENT HAD INTEL ARCHITECTURE BILLIONS OF DOLLARS WORTH OF SOFTWARE HAS BEEN PURCHASED BY COMPUTER CUSTOMERS BASED ON THE INTEL DESIGN THE POWERPC CHIP UNLIKE THE INTEL CHIPS USES REDUCED INSTRUCTION SET COMPUTING OR RISC DESIGN I. B. M. SAYS IT WILL BE SWIFTER AND LESS EXPENSIVE TO MANUFACTURE THAN THE PENTIUM AND WILL COMPETE MOST DIRECTLY WITH INTEL'S NEXT GENERATION OF PENTIUM CHIPS I. B. M. HAS PROMISED A P. C. RUNNING ON THE NEW CHIP BY THE MIDDLE OF THIS YEAR IT IS ALSO PLANNING A HOST OF CONSUMER PRODUCTS THAT WILL RUN ON A FAMILY OF POWERPC CHIPS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE I. B. M. SHARES CLOSED AT FIFTY SIX DOLLARS AND FIFTY CENTS DOWN ONE DOLLAR AND TWENTY FIVE CENTS ON THE NASDAQ STOCK MARKET INTEL SHARES CLOSED AT SIXTY FIVE DOLLARS AND TWENTY FIVE CENTS UP TWELVE POINT FIVE CENTS AVATAR HOLDINGS INCORPORATED SAID IT HAS REMOVED ITS PRESIDENT AND CHIEF EXECUTIVE AND NAMED HIM A CONSULTANT TO THE COMPANY BUT THE EXECUTIVE LAWRENCE WILKOV ACCORDING TO HIS ATTORNEY HAS BEEN QUOTE UNDERMINED QUOTE AT AVATAR AND WANTS THE COMPANY TO HONOR THE REMAINDER OF HIS EMPLOYMENT CONTRACT MR. WILKOV SIXTY ONE YEARS OLD HAS BEEN PRESIDENT OF THE REAL ESTATE AND UTILITY HOLDING COMPANY SINCE NINETEEN EIGHTY FOUR HE WAS NAMED CHIEF EXECUTIVE IN NINETEEN NINETY YESTERDAY AVATAR SAID THAT AS A RESULT OF CERTAIN DIFFERENCES MR. WILKOV'S STATUS WOULD BE CHANGED TO THAT OF CONSULTANT IT DECLINED TO ELABORATE THE COMPANY SAID EDWIN JACOBSON SIXTY THREE CHAIRMAN OF AVATAR'S EXECUTIVE COMMITTEE HAS ASSUMED THE DUTIES OF CHIEF EXECUTIVE MR. JACOBSON COULDN'T BE REACHED FOR COMMENT MR. WILKOV'S ATTORNEY HUGO L. BLACK JUNIOR SAID HIS CLIENT HAD A CONTRACT TO RUN THE COMPANY UNTIL DECEMBER NINETEEN NINETY SEVEN BUT IN THE PAST MONTH MR. BLACK SAID MR. WILKOV HAS FOUND SOME OF HIS DECISIONS AND ACTIONS BLOCKED BY OTHER EXECUTIVES AT AVATAR MR. BLACK SAID MR. WILKOV WON'T BE A CONSULTANT TO THE COMPANY RATHER MR. WILKOV WANTS AVATAR TO UPHOLD THE TERMS OF THE REMAINDER OF HIS EMPLOYMENT CONTRACT THAT PACT ACCORDING TO MR. BLACK CALLS FOR AN ANNUAL SALARY OF THREE HUNDRED THOUSAND DOLLARS AND FOR MR. WILKOV TO RECEIVE A TOTAL OF SIXTY THOUSAND SHARES OF AVATAR STOCK THROUGH THE FIRST NINE MONTHS OF NINETEEN NINETY THREE AVATAR REPORTED EARNINGS OF EIGHT POINT NINE MILLION DOLLARS OR EIGHTY EIGHT CENTS A SHARE ON REVENUE OF ONE HUNDRED ONE POINT SIX MILLION DOLLARS NET INCOME INCLUDED A GAIN OF ELEVEN POINT SEVEN MILLION DOLLARS ON THE SALE OF THE COMPANY'S MIDWEST WATER UTILITIES AND A CHARGE OF NINE HUNDRED SIXTY FOUR THOUSAND DOLLARS FOR AN ACCOUNTING CHANGE FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN WARNED CONGRESS THAT THE FED WOULD BOOST SHORT TERM INTEREST RATES QUOTE AT SOME POINT QUOTE BUT HE REFUSED TO SPECULATE ABOUT WHEN IT MIGHT DO SO SHORT TERM INTEREST RATES ARE CURRENTLY ABNORMALLY LOW IN REAL TERMS HE SAID AT SOME POINT ABSENT AN UNEXPECTED AND PROLONGED WEAKENING OF ECONOMIC ACTIVITY WE WILL NEED TO MOVE THEM TO A MORE NEUTRAL STANCE APPEARING BEFORE CONGRESS'S JOINT ECONOMIC COMMITTEE AN UPBEAT MR. GREENSPAN DESCRIBED A ROBUST U. S. ECONOMY SAYING THE FOUNDATIONS OF ECONOMIC EXPANSION ARE LOOKING INCREASINGLY WELL ENTRENCHED PROGRESS IN REDUCING THE FEDERAL BUDGET DEFICIT ALONG WITH CORPORATE AND PRIVATE DEBT HAVE HELPED PAVE THE WAY FOR STRONGER GROWTH HIGHER EMPLOYMENT AND MORE AGGRESSIVE CONSUMER SPENDING AND BUSINESS INVESTMENT HE SAID MR. GREENSPAN ALSO SAID INFLATION IS LIKELY TO REMAIN TAME IN NINETEEN NINETY FOUR NOTING THAT IN THE FOURTH QUARTER ONE KEY MEASURE OF INFLATION THE CORE CONSUMER PRICE INDEX WHICH EXCLUDES VOLATILE FOOD AND ENERGY PRICES FELL TO THE LOWEST LEVEL IN TWO DECADES I HAVE SAID ON MANY OCCASIONS I THOUGHT THAT WE ARE NOT THAT FAR FROM PRICE STABILITY HE SAID QUOTE WE AREN'T THERE YET CLEARLY BUT WE HAVE MADE CONSIDERABLE PROGRESS IN THAT DIRECTION QUOTE HE CAUTIONED THAT BY THE TIME INFLATION BECOMES EVIDENT IT'S TOO LATE TO MODERATE IT WITHOUT HARSH INTEREST RATE INCREASES PRESIDENT CLINTON AS WELL AS MEMBERS OF THE COMMITTEE APPEALED TO THE FED TO RESIST RAISING RATES WHEN THE CENTRAL BANK'S OPEN MARKET COMMITTEE MEETS THIS WEEK TO DISCUSS INTEREST RATE POLICY WE WANT THE ECONOMY TO GROW IN A VERY STABLE SOLID WAY PRESIDENT CLINTON TOLD REPORTERS YESTERDAY AND OBVIOUSLY LOW INTEREST RATES ARE CRITICAL TO THAT AT THE HEARING SENATOR PAUL SARBANES D. MARYLAND REMINDED MR. GREENSPAN THAT MUCH OF THE CURRENT ECONOMIC KICK IS COMING FROM INTEREST SENSITIVE INDUSTRIES SUCH AS HOME BUILDING HIGHER INTEREST RATES COULD DIMINISH SUCH GROWTH THE SENATOR WARNED I WANT TO STAY THE COURSE HERE HE SAID MR. GREENSPAN SAID THAT RAISING SHORTTERM RATES WOULD PROVIDE PRICE STABILITY NECESSARY FOR FURTHER ECONOMIC GROWTH SUCH AN ACTION WOULD NOT BE TAKEN IN ORDER TO CUT OFF OR LIMIT THE ECONOMIC EXPANSION HE SAID BUT RATHER TO SUSTAIN AND ENHANCE IT LAST JULY MR. GREENSPAN ISSUED SIMILAR WARNINGS THAT THE FED WAS BRACING ITSELF FOR FURTHER SIGNS OF INFLATION TO ASSESS WHETHER TO INCREASE SHORT TERM RATES THE LAST TIME THE FED MOVED INTEREST RATES WAS A REDUCTION IN SEPTEMBER NINETEEN NINETY TWO IT HASN'T ACTED TO INCREASE RATES IN FIVE YEARS CITING A FEW ECONOMIC DARK SPOTS THE FED CHAIRMAN POINTED TO SOME WEAKNESS IN PARTS OF THE LABOR MARKET SOME INDUSTRIES HAVE IMPROVED PRODUCTIVITY BY DOING MORE WITH FEWER EMPLOYEES INDUSTRIES DEPENDENT ON MILITARY SPENDING ARE EXPECTED TO REMAIN ANEMIC AND WEAKNESS OF SOME MAJOR TRADING PARTNERS PARTICULARLY JAPAN AND EUROPE CONTINUES TO HURT DEMAND FOR U. S. EXPORTS INTERPRETING ECONOMIC DATA WILL BE MORE DIFFICULT IN THE COMING MONTHS MR. GREENSPAN SAID DUE TO CHANGES IN HOW SOME STATISTICS ARE BEING GATHERED AND EXTRAORDINARY EVENTS SUCH AS THE LOS ANGELES EARTHQUAKE AND THE RECENT SEVERE EAST COAST COLD SNAP NONETHELESS HE PREDICTED THAT REAL GROWTH OF GROSS DOMESTIC PRODUCT THE MEASURE OF THE COUNTRY'S OUTPUT OF GOODS AND SERVICES WILL ALMOST SURELY SLOW APPRECIABLY FROM THE RAPID FIVE POINT NINE PERCENT ANNUAL RATE POSTED IN THE FOURTH QUARTER BUT HE PREDICTED FURTHER SOLID GAINS IN THE COMING QUARTERS THE OFFICE OF THRIFT SUPERVISION DECLARED A MORATORIUM ON TAKEOVERS OF MUTUAL SAVINGS ASSOCIATIONS WHILE IT CONSIDERS POSSIBLE NEW RULES AIMED AT PROTECTING THE INTERESTS OF THOSE INSTITUTIONS' DEPOSITORS ALTHOUGH THE ACQUIRING BANK AND THE MUTUAL SAVINGS BANK'S MANAGERS MAY BENEFIT FROM A TAKEOVER THE DEPOSITORS WHO OWN THE MUTUAL BANK COULD WIND UP WITH LITTLE GAIN OR EVEN A DROP IN THE VALUE OF THEIR HOLDINGS THE TREASURY DEPARTMENT UNIT SAID WHEN THE DEPOSITORS' OWNERSHIP IN THEIR INSTITUTION IS CONVERTED TO SHARES OF THE ACQUIRER ANY APPRECIATION IN THAT STOCK TENDS TO BE MODERATE THE O. T. S. SAID JONATHAN FIECHTER O. T. S. ACTING DIRECTOR SAID HIS AGENCY ALSO WILL REVIEW ITS REGULATIONS GOVERNING CONVERSIONS OF MUTUAL SAVINGS BANKS TO STOCKHOLDER OWNED SAVINGS INSTITUTIONS WHEN NO TAKEOVER IS INVOLVED BUT WON'T HOLD UP ACTING ON APPLICATIONS FOR THOSE CONVERSIONS MR. FIECHTER HAS SAID O. T. S. RULES FOR SUCH CONVERSIONS FAVOR DEPOSITORS BY PROTECTING THEIR RIGHTS WHEN THEIR INSTITUTION CONVERTS TO A STOCK SAVINGS BANK BUT HE NOTED THAT SOME RECENT TRANSACTIONS QUOTE HAVE RAISED CONCERNS OVER HOW WELL DEPOSITOR INTERESTS HAVE BEEN SERVED QUOTE THOSE DEALS INCLUDED A CONVERSION PLAN BY GREEN POINT SAVINGS BANK A UNIT OF G. P. FINANCIAL CORPORATION LAST WEEK THE NEW YORK STATE BANKING DEPARTMENT REBUKED THE SAVINGS BANK SAYING TOP EXECUTIVES WERE SEEKING TO ENRICH THEMSELVES BY THE CONVERSION WHILE FAILING TO MAKE SURE THE BANK WAS VALUED FAIRLY THE DEPARTMENT IMPOSED A LONG LIST OF STRINGENT CONDITIONS ON THE CONVERSION PLAN MEANWHILE MR. FIECHTER SAID IT IS MY HOPE THAT THE FEDERAL DEPOSIT INSURANCE CORPORATION WILL MOVE PROMPTLY TO ADOPT A SIMILAR MORATORIUM FOR THRIFTS UNDER ITS SUPERVISION THEREBY REDUCING THE PRESSURE ON O. T. S. SUPERVISED THRIFTS TO CHANGE TO STATE CHARTERS TO AVOID THE O. T. S. MORATORIUM THE F. D. I. C. LAST WEEK ISSUED A PROPOSED POLICY STATEMENT AIMED AT PREVENTING WINDFALLS BY INSIDERS WHEN MUTUAL SAVINGS BANKS UNDER F. D. I. C. JURISDICTION CONVERT TO STOCKHOLDER OWNED INSTITUTIONS BUT TWO OF THE THREE F. D. I. C. BOARD MEMBERS INCLUDING MR. FIECHTER WHILE VOTING FOR THE PROPOSAL SAID THE PLAN IS TOO WEAK AND ADVOCATED THAT THE F. D. I. C. INSTEAD ADOPT O. T. S. TYPE REGULATIONS THE F. D. I. C. CURRENTLY HAS NO REGULATIONS COVERING SUCH CONVERSIONS ANDREW HOVE ACTING CHAIRMAN OF THE F. D. I. C. TOLD THE HOUSE FINANCIAL INSTITUTIONS SUBCOMMITTEE LAST WEEK THAT THE F. D. I. C. IS CONSIDERING URGING OR REQUIRING FOR CERTAIN THRIFTS THAT IT REGULATES THAT STOCK PURCHASE RIGHTS BE ISSUED TO DEPOSITORS IN A CONVERSION THEY COULD THEN SELL THE RIGHTS TO CAPTURE ANY WINDFALL FROM CAPITAL RAISED IN THE CONVERSION MR. HOVE SAID ALL FEDERALLY CHARTERED SAVINGS AND LOAN ASSOCIATIONS AND SAVINGS BANKS ALONG WITH STATE CHARTERED S. AND L.S ARE REGULATED BY THE O. T. S. THE F. D. I. C. OVERSEES STATE CHARTERED SAVINGS BANKS BUT BECAUSE RULES ARE LACKING FOR CONVERSIONS BY THOSE INSTITUTIONS TO STOCK SAVINGS BANKS OFTEN WEAK STATE REGULATIONS PREVAIL MANY THRIFTS HAVE CHANGED THEIR CHARTERS IN RECENT YEARS BECOMING STATE CHARTERED BANKS AND ESCAPING O. T. S. REGULATION BUT THE O. T. S. STILL REGULATES ABOUT EIGHT HUNDRED MUTUAL SAVINGS INSTITUTIONS REPRESENTATIVE HENRY GONZALEZ D. TEXAS THE HOUSE BANKING COMMITTEE CHAIRMAN YESTERDAY URGED THE O. T. S. TO CONSIDER WAYS TO EXPAND THE BENEFITS OF CONVERSIONS TO THE DEPOSITORS HE SAID THE F. D. I. C. WOULD DO WELL TO FOLLOW THE O. T. S.'S LEAD TO PREVENT SAVINGS BANK INSIDERS FROM CHOOSING THE REGULATOR WHOSE RULES PERMIT THE INSIDERS TO GET RICHEST LEADERS OF THE HOUSE AND SENATE BANKING COMMITTEES HAVE OFFERED LEGISLATION THAT WOULD RESTRICT INSIDER GAINS IN THE SAVINGS BANK CONVERSIONS DO YOU ENJOY EATING PIZZA WHILE YOU DRIVE TO WORK BUT CRINGE WHEN THE BOSS NOTICES THE PEPPERONI ON YOUR LAPEL DO YOU REACH IN YOUR POCKET FOR A PEN AND PULL OUT A FRENCH FRY INSTEAD ARE YOU A MESS AT FIFTY FIVE MILES AN HOUR WORRY NO MORE AMERICAN INVENTORS MAY HAVE SOLVED YOUR PROBLEM A RECENT ARTICLE IN THIS NEWSPAPER ABOUT EATING IN THE CAR INSPIRED SEVERAL WOULD BE ENTREPRENEURS TO SHARE THEIR IDEAS FOR PRODUCTS MOST OF THESE INVENTIONS ARE LIKELY TO FAIL MERELY OBTAINING A PATENT COSTS AT LEAST FIVE THOUSAND DOLLARS AND DEVELOPING PRODUCT PROTOTYPES AND CRAFTING MANUFACTURING TOOLS CAN EASILY PUSH UP THE INVESTMENT TO FIFTY THOUSAND DOLLARS EVEN FOR THE RARE INVENTOR WHO SUCCEEDS IN BRINGING A PRODUCT TO MARKET SUCCESS IS FAR FROM CERTAIN MANY HOME INVENTORS SIMPLY DON'T REALIZE THAT A NOVEL IDEA DOESN'T NECESSARILY TRANSLATE INTO A BUSINESS OPPORTUNITY SAYS WENDELL E. DUNN ASSOCIATE DIRECTOR OF THE SOL C. SNIDER ENTREPRENEURIAL CENTER AT THE WHARTON SCHOOL MR. DUNN AGREED TO TALK ONLY IF THE WALL STREET JOURNAL ASKED INVENTORS NOT TO CALL HIM PLEASE DON'T CALL MR. DUNN QUOTE THE BIGGEST PROBLEM WITH AMATEUR INVENTORS IS THAT THEY FALL IN LOVE WITH THEIR INVENTIONS QUOTE HE SAYS EVERYONE KNOWS LOVE IS BLIND JUDGE FOR YOURSELF PICTURE A SOFT VINYL LAP COVER AND YOU'VE GOT THE INVENTION OF EDWINS ARTHURS SPULGIS A THIRTY THREE YEAR OLD FORMER CONSTRUCTION SUPERINTENDENT AN ADVANTAGE OF HIS PRODUCT THE ORIGINAL CATCHMASTER HE CALLS IT IS THAT IT IS SMALL SOFT AND WON'T CAUSE A PROBLEM IN CASE OF A CRASH MORE IMPORTANT UNLIKE A BIB IT CAN'T BE EASILY SEEN BY PEOPLE IN OTHER VEHICLES MR. SPULGIS DISDAINS BIBS RIGHT YOU'RE DRIVING A FORTY THOUSAND DOLLAR CAR AND YOU'RE GOING TO LOOK OVER AT A GIRL IN THE NEXT CAR AND SAY HEY I'VE GOT A BIB ON HE ADDS SCORNFULLY YOU COULD ALSO CUT A HOLE IN A GARBAGE BAG AND POP IT OVER YOUR HEAD AS FOR THE ORIGINAL CATCHMASTER IT WORKS LIKE A CHARM AT LEAST ACCORDING TO MR. SPULGIS I'VE POURED REALLY HOT COFFEE IN MY LAP WHILE WEARING SHORTS AND THE VINYL KEPT ME INSULATED HE SAYS QUOTE YOU'LL FEEL A LITTLE WARM BUT YOU WON'T JUMP UP AND SCREAM IN TRAFFIC QUOTE STILL THE CATCHMASTER WHICH MR. SPULGIS HOPES TO SELL FOR TEN DOLLARS TAKES SOME GETTING USED TO IT FEATURES A TROUGH LIKE SPILLWAY COMPLETE WITH A LARGE PLASTIC CLIP MEANT TO HOLD BEVERAGES SECURELY BETWEEN A WEARER'S THIGHS CONSUMERS WHO DON'T LIKE THE CLIP MR. SPULGIS SAYS MAY SIMPLY REMOVE IT AND USE THE SPILLWAY TO HOLD FRENCH FRIES INSTEAD THERE IS A DRAWBACK FOR LADIES IN TIGHT SKIRTS HE CONCEDES MR. SPULGIS ESTIMATES THAT HE HAS ALREADY SPENT AT LEAST FIFTEEN THOUSAND DOLLARS DEVELOPING PROTOTYPES OF THE CATCHMASTER BUT HAS YET TO MANUFACTURE THE PRODUCT IN QUANTITY NOR IS HE CERTAIN ABOUT HOW HIS COMPANY E. A. S. ASSOCIATES WILL MARKET THE ITEM HE REMAINS OPTIMISTIC THOUGH DEVOTING HIMSELF TO THE PROJECT FULL TIME I'VE GIVEN UP DATING HE SAYS IT CAME TO SANDY FLICK AFTER AN EVENING SHOPPING TRIP IN EARLY NINETEEN NINETY SHE PICKED UP A BURGER AND FRIES AT A FAST FOOD DRIVE THROUGH WINDOW AND HEADED FOR HOME BUT THANKS TO A MANUAL TRANSMISSION AND A SHARP TURN SHE RUINED A NEW PAIR OF PANTS BEFORE SHE EVEN HIT THE STREET LESS THAN A YEAR LATER THE FORMER FLIGHT ATTENDANT HAD DEVELOPED A MODEL OF A TRAY THAT CLIPS TO SEAT BELTS INSPIRED BY THE DESIGN OF CHILDRENS' CAR SEATS SHE CRAFTED THE FIRST PROTOTYPE FROM CARDBOARD DRINK HOLDERS THEN MOVED ON TO PAPIER MACHE SOON SHE HAD A PLASTIC VERSION I'M JUST A MOM SHE SAYS MODESTLY AND MOMS HAVE TO BE INVENTIVE THE PROTOTYPE WORKED BEAUTIFULLY SHE SAYS SO MS. FLICK LOADED HER TWO CHILDREN INTO HER CAR AND DROVE FROM MIDDLETOWN CALIFORNIA TO CHICAGO THE FIRST LEG OF A TEN THOUSAND MILE MARKETING TRIP SHE VISITED THE PURCHASING OFFICE OF NEARLY EVERY MAJOR FASTFOOD CHAIN AND INVITED MANAGERS OUT TO LUNCH THE LUNCH CONSISTED OF DRIVE THROUGH FARE WHICH SHE COAXED HER GUESTS TO EAT IN THE CAR AS THEY TESTED HER TRAY MS. FLICK DROVE AROUND MAKING SHARP TURNS AND SLAMMING ON THE BRAKES ALTHOUGH SHE SAYS SHE DOESN'T ENCOURAGE EATING AND DRIVING MS. FLICK ADDS THAT THE LAP TOP COMMUTER TRAY WILL EASILY FIT BETWEEN YOU AND THE STEERING WHEEL UNLESS YOU'RE REAL FAT A DIVORCE AND A SHORTAGE OF FUNDS HAVE SLOWED HER DOWN BUT MS. FLICK VOWS HER LARAKELL TRAY COMPANY NAMED AFTER HER TWO CHILDREN WILL BEGIN SELLING THE TRAYS THROUGH FAST FOOD RESTAURANTS AND RETAIL STORES LATER THIS YEAR MS. FLICK WHO HAS YET TO SIGN A DEAL WITH A SINGLE BIG CUSTOMER KNOWS THAT ONLY ABOUT THREE PERCENT OF NEW PRODUCTS MAKE IT SHE FERVENTLY BELIEVES HERS WILL BE ONE OF THEM EDWINS ARTHURS SPULGIS'S OPINION OF BIBS NOTWITHSTANDING HOWARD ZACK THINKS THEY ARE THE PERFECT ACCESSORY FOR THOSE WHO INGEST ON THE INTERSTATE MR. ZACK THIRTY SEVEN CRAFTED HIS COMMUTER COVERUP FROM BLACK NEOPRENE A SYNTHETIC RUBBER A ONE TIME BRAND MANAGER FOR PROCTER AND GAMBLE AND A FORMER COMMERCIAL REAL ESTATE DEVELOPER MR. ZACK SAYS HIS PRODUCT PROTECTS WEARERS AGAINST SCALDING COFFEE AS WELL AS MORE TEMPERATE SPILLS AND FOR THE TRULY MESSY THE COMMUTER COVERUP HAS A SHALLOW POCKET AT THE BOTTOM TO CATCH REALLY BIG SPILLS IT WILL PROBABLY OUTLAST THE CAR YOU'RE DRIVING HE SAYS THAT KIND OF PROTECTION DOESN'T COME CHEAP MARKETED BY S. A. M. I. INCORPORATED IN TIBURON CALIFORNIA S.A.M.II IS AN ACRONYM CREATED FROM FAMILY NAMES THE COMMUTER COVERUP SELLS FOR SEVENTEEN DOLLARS AND NINETY FIVE CENTS PLUS SHIPPING MR. ZACK CONCEDES SALES SO FAR HAVE BEEN QUOTE MODEST QUOTE BUT HE REMAINS UNDAUNTED PEOPLE MAY FEEL FUNNY WEARING A BIB IN THE CAR HE SAYS BUT NOT AS FUNNY AS THEY WOULD WITH STAINS ON THEIR CLOTHES SOME CAR MEAL ENTREPRENEURS ARE AIMING NOT AT DRIVERS BUT AT PASSENGERS GAIL FRANKEL FORTY CREATED A MEAL TRAY THAT CLIPS ON CAR WINDOWS AS WELL AS STROLLER ARMS WITH KIDS IN MIND THE IDEA WAS HONED AFTER HAULING HER TWO CHILDREN THROUGH FAST FOOD RESTAURANTS IN DALLAS'S MALLS I DON'T LOOK OVER THE MARKET CAREFULLY SHE SAYS I JUST TRY TO THINK OF THINGS I WOULD LIKE TO HAVE MYSELF INTUITION HAS PAID OFF FOR MS. FRANKEL IN THE PAST HER DALLAS COMPANY KEL GAR INCORPORATED CURRENTLY SELLS SEVEN PRODUCTS KEL GAR IS AN AMALGAMATION OF HER HUSBAND'S SURNAME AND HER MAIDEN NAME ALSO IN THE PRODUCT LINE TUBBLY BUBBLY A RUBBER BATHTUB FAUCET PROTECTOR SHAPED LIKE AN ELEPHANT AND A MATCHING BATHTUB MAT CALLED TUB RUG THAT CHANGES COLOR IF THE WATER IS TOO HOT BUT THE SNAK RAK WHICH COSTS ABOUT TEN DOLLARS AND WAS LAUNCHED LAST AUGUST IS OFF TO A GOOD BUT NOT GREAT START FORGET CLIPS AND POCKETS AND EXOTIC MATERIALS BIGBIB IS A JUMBO BIB FOR ADULTS THAT FUNCTIONS EXACTLY LIKE INFANT VERSIONS AND SELLS FOR TWELVE DOLLARS JOAN C. REED FIFTY SEVEN HAS ENVISIONED BIGBIB SINCE THE NINETEEN SIXTIES BACK THEN HER JOB IN ADVERTISING REQUIRED A LOT OF DRIVING AND HER LOVE FOR HOT DOGS RESULTED IN FREQUENT MESSES A STINT AS A GRAPHIC DESIGNER AT A FACTORY THAT MADE BABY BIBS LATER FUELED HER DREAM MS. REED SAYS HER COMPANY KRISSIE PRODUCTS INCORPORATED IN PORTSMOUTH R. I. SOLD TWENTY FIVE THOUSAND BIGBIBS LAST YEAR THROUGH SPECIALTY STORES AND TO COMPANIES WHO GAVE THE BIBS TO THEIR SALES FORCES THE COMPANY NAMED AFTER MS. REED'S DAUGHTER HOPES TO SELL AS MANY AS ONE HUNDRED THOUSAND IN NINETEEN NINETY FOUR TO BOOST SALES THE COMPANY HAS RECENTLY BEGUN MARKETING THE BIBS TO HOSPITALS AND NURSING HOMES AND HAS CREATED A VERSION DESIGNED SPECIFICALLY FOR EATING LOBSTER SHE MAY HAVE NO CHOICE EVEN THE BUOYANT MS. REED CONCEDES SOME ADULTS WOULD FEEL TOO SILLY TO DRIVE AROUND IN A BIB TO INCREASE THEIR COMFORT LEVEL SHE RECENTLY ADDED DARK COLORS TO HER ORIGINALLY ALL WHITE LINE MEN LIKE NAVY AND GREEN SHE SAYS COMSAT CORPORATION SAID IT WILL BUY TELECOMMUNICATIONS EQUIPMENT MAKER RADIATION SYSTEMS INCORPORATED OF STERLING VIRGINIA FOR EIGHTEEN DOLLARS AND TWENTY FIVE CENTS A SHARE IN STOCK OR ABOUT ONE HUNDRED FIFTY MILLION DOLLARS RADIATION SYSTEMS STOCK SOARED THIRTY ONE PERCENT TO SEVENTEEN POINT SIX TWO FIVE DOLLARS UP FOUR POINT ONE TWO FIVE DOLLARS IN HEAVY TRADING ON THE NASDAQ STOCK MARKET COMSAT CLOSED AT TWENTY SEVEN POINT ONE TWO FIVE DOLLARS UP TWENTY FIVE CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING COMSAT WHICH PROVIDES SATELLITE NETWORKS AND OTHER COMMUNICATIONS GEAR SAID RADIATION SYSTEMS AND A COMSAT DIVISION WOULD JOIN FORCES TO SERVE THE MARKET FOR WIRELESS COMMUNICATIONS COMSAT WHICH ALREADY OWNS FOUR POINT NINE PERCENT OF RADIATION SYSTEM'S STOCK SAID IT WOULD EXCHANGE EACH SHARE OF RADIATION SYSTEMS FOR EIGHTEEN DOLLARS AND TWENTY FIVE CENTS IN COMSAT STOCK RADIATION SYSTEMS GRANTED COMSAT AN IRREVOCABLE OPTION TO PURCHASE UP TO AN ADDITIONAL FIFTEEN PERCENT OF RADIATION SYSTEMS' COMMON STOCK OUTSTANDING AT AN EXERCISE PRICE OF EIGHTEEN DOLLARS AND TWENTY FIVE CENTS A SHARE COMSAT SAID IT DOESN'T EXPECT THE PURCHASE TO MATERIALLY DILUTE ITS NINETEEN NINETY FOUR EARNINGS REGULATORS AND RADIATION SYSTEMS SHAREHOLDERS MUST APPROVE THE PURCHASE FOLLOWING THE ANNOUNCEMENT STANDARD AND POOR'S CORPORATION AFFIRMED ITS SINGLE A RATING OF COMSAT'S SENIOR UNSECURED DEBT TOTAL DEBT IS ABOUT FIVE HUNDRED TWENTY FIVE MILLION DOLLARS S. AND P. SAID SEPARATELY RADIATION SYSTEMS REPORTED FISCAL SECOND QUARTER NET INCOME OF ONE POINT THREE MILLION DOLLARS OR SIXTEEN CENTS A SHARE DOWN FORTY TWO PERCENT FROM TWO POINT THREE MILLION DOLLARS OR TWENTY SEVEN CENTS A SHARE A YEAR EARLIER REVENUE FOR THE QUARTER ENDED DECEMBER THIRTY FIRST WAS TWENTY SEVEN POINT ONE MILLION DOLLARS COMPARED WITH TWENTY NINE POINT THREE MILLION DOLLARS A YEAR EARLIER THE COMPANY SAID THE DECLINE WAS LARGELY DUE TO THE DELAY IN SETTLING A BUSINESS INTERRUPTION INSURANCE CLAIM MICROGRAFX INCORPORATED IN A MAJOR SHIFT IN STRATEGY FOR THE BUSINESS SOFTWARE COMPANY IS JOINING WITH THE MAKER OF CRAYOLA CRAYONS TO DEVELOP A LINE OF COMPUTER PROGRAMS FOR KIDS THE ALLIANCE EXPECTED TO BE ANNOUNCED TODAY IS A FIRST FOR BOTH COMPANIES AND PLACES THEM AT THE CENTER OF WHAT HAS BECOME A BOOMING MARKET FOR SOFTWARE AIMED AT THE HOME BOTH MICROGRAFX AND BINNEY AND SMITH INCORPORATED THE UNIT OF CLOSELY HELD HALLMARK CARDS INCORPORATED THAT SELLS CRAYOLA PRODUCTS SAY THEY EXPECT THEIR FIRST CHILDREN'S DRAWING PROGRAMS TO BE RELEASED IN THE SPRING UNDER THEIR AGREEMENT MICROGRAFX WILL WRITE THE SOFTWARE FOR THE NEW TITLES WHILE BINNEY AND SMITH WILL HELP PLAN THE CONTENT DESIGN THE PACKAGING AND DISTRIBUTE THE FINAL PRODUCT MICROGRAFX FOR INSTANCE IS EXPECTED TO TAP BINNEY AND SMITH'S VAST MASS MARKET DISTRIBUTION SYSTEM INCLUDING RETAILERS SUCH AS TOYS R. US AND WAL MART STORES INCORPORATED WHICH IS FAR BROADER THAN MICROGRAFX'S TRADITIONAL BASE OF COMPUTER SUPERSTORES AND DEALERS MR. TUCKER SAID THE FIRST TWO PRODUCTS WILL BE PRICED AT LESS THAN FIFTY DOLLARS AND WILL CARRY BOTH THE MICROGRAFX AND CRAYOLA NAMES THE SOFTWARE AIMED AT CHILDREN AS YOUNG AS THREE YEARS OLD INCLUDES DRAWING AND PAINTING PROGRAMS AS WELL AS AN ART QUOTE STUDIO QUOTE THAT WILL HELP KIDS CREATE FLIERS AND POSTERS THIS IS NOT JUST A LICENSING DEAL SAID GORDON M. TUCKER THE LONGTIME CONSUMER MARKETER WHO TOOK OVER AS MICROGRAFX'S CHIEF EXECUTIVE OFFICER SEPTEMBER THIS IS A FULL FLEDGED PARTNERSHIP FOR MICROGRAFX THE PARTNERSHIP COULDN'T HAVE COME SOON ENOUGH THE ONETIME HIGHFLIER ONE OF THE FIRST DEVELOPERS OF BUSINESS PROGRAMS FOR MICROSOFT CORPORATION'S POPULAR WINDOWS SOFTWARE HAS SUFFERED A SLOWDOWN IN SALES GROWTH ALONG WITH DELAYS IN INTRODUCING KEY PRODUCTS FOR ITS FISCAL THIRD QUARTER ENDED DECEMBER THIRTY FIRST THE COMPANY REPORTED A NET LOSS OF ONE POINT ONE MILLION DOLLARS OR THIRTEEN CENTS A SHARE AFTER RESTRUCTURING ITS EUROPEAN OPERATIONS REVENUE WAS BASICALLY FLAT AT ABOUT SEVENTEEN POINT NINE MILLION DOLLARS MR. TUCKER SAID HE WAS ATTRACTED TO THE HOME MARKET BY ITS POTENTIAL FOR RAPID GROWTH EVEN AS THE MARKET FOR MANY TRADITIONAL SOFTWARE TITLES HAS BEGUN TO PLATEAU THE EXECUTIVE PREDICTS SALES FROM MICROGRAFX'S NEW AT HOME DIVISION COULD ACCOUNT FOR AS MUCH AS HALF OF THE COMPANY'S REVENUE WITHIN THREE TO FIVE YEARS THIS IS A MARKET THAT IS GROWING JUST EXPLOSIVELY SAID JEFFREY TARTER PUBLISHER OF SOFTLETTER AN INDUSTRY NEWSLETTER IN WATERTOWN MASSACHUSETTS MOST OF THE BUSINESS CATEGORIES ARE SATURATED MR. TARTER NOTES THOUGH THAT TAPPING INTO THE HOME MARKET MEANS TAKING ON HEAVYWEIGHTS LIKE MICROSOFT AND BRODERBUND SOFTWARE INCORPORATED MICROSOFT FOR INSTANCE LAST MONTH ANNOUNCED ITS FIRST WRITING AND ART PROGRAM FOR CHILDREN ALONG WITH PLANS TO SELL THE SOFTWARE THROUGH TELEVISION HOME SHOPPING NETWORKS WHILE MR. TARTER NOTES THAT MICROGRAFX HAS NO NAME IDENTIFICATION AMONG CONSUMER SOFTWARE BUYERS HE SAID THE CRAYOLA NAME SHOULD GIVE THE NEW PRODUCTS INSTANT CREDIBILITY WHENEVER YOU CAN BORROW A WELLKNOWN BRAND IT HELPS HE SAID QUOTE CRAYOLA IN THIS MARKET IS A MUCH STRONGER BRAND NAME THAN EVEN MICROSOFT OR LOTUS DEVELOPMENT CORPORATION QUOTE FRED GEYER DIRECTOR OF BUSINESS DEVELOPMENT AT BINNEY AND SMITH BASED IN EASTON PENNSYLVANIA SAID THE MICROGRAFX SOFTWARE TITLES WILL BE THE FIRST OF MANY FOR THE COMPANY WE THINK THIS WILL BE A CORE BUSINESS FOR BINNEY AND SMITH HE SAID WE THINK THERE'S AN AWFUL LOT OF POTENTIAL HERE IN NASDAQ STOCK MARKET TRADING MICROGRAFX SHARES WERE UNCHANGED AT ELEVEN DOLLARS EACH THIS HAS NOT ON THE WHOLE BEEN A HAPPY YEAR AT THE WAR MEMORIAL OPERA HOUSE FACING A SIX MILLION DOLLAR DEFICIT LAST JANUARY THE SAN FRANCISCO OPERA BEGAN BY AXING FUTURE QUOTE FESTIVAL QUOTE SEASONS IN THE SUMMER MANAGEMENT THEN ANNOUNCED TURANDOT FASHION THE CHOPPING OF FOURTEEN HEADS THOUGH THE BIGGEST OF THEM BELONGING TO GENERAL MANAGER LOTFI MANSOURI REMAINED FIRMLY MYSTERIOUSLY ATTACHED HIS CONTRACT RENEWED FOR YET ANOTHER SIX YEARS NEXT THE COMPANY SCUTTLED PLANS FOR A NEW DIE MEISTERSINGER AND SCHEDULED SEVERAL REVIVALS ANDREI SERBAN WHOSE NINETEEN EIGHTY TWO INTERPRETATION OF I PURITANI WAS RE CREATED HERE BY JONATHAN EATON INSISTED ON CHOKING OFF BELLINI'S LYRICISM AND LOGIC AT EVERY TURN TO BEGIN AT THE END HE HAS THE HERO'S RIVAL SNEAK OUT JUST BEFORE THE FINAL CURTAIN AND STAB HIM IN THE BACK THEREBY SPARING US THE SENTIMENTAL TACKINESS OF A HAPPY ENDING THE CHORUS IN HIS PRODUCTION IS MADE UP OF BLOODIED DYING SOLDIERS HOBBLING OR BEING DRAGGED INTO THE GRIM CASTLE COURTYARD TO REMIND US THAT THERE'S A WAR GOING ON IN ACT TWO THEY SING A LONG SONG OF SYMPATHY FOR POOR JILTED ELVIRA THE SOPRANO GONE MAD CONSIDERING THEIR CONDITION IT SEEMED HEROIC OF THEM TO WORRY SO MUCH ABOUT HERS THE WALKING WOUNDED LATER STAGGER TOGETHER TO SING BELLINI'S HEROIC VICTORY SONG IN ACT THREE THE RETURNED HERO KISSES A BLEAK NO MAN'S LAND COVERED WITH SNOW WHILE BLISSFULLY DESCRIBING THE GREEN GREEN TREES OF HOME AS HIS DOTTY BELOVED PLAYS HIDE AND SEEK BEHIND A JUNKED CINDERELLA COACH THE WHOLE PRODUCTION WAS LITTLE MORE THAN A DRAB ILL CONCEIVED FRAME FOR JUNE ANDERSON'S EVERLASTING MAD SCENE IN ACT TWO PLUS A FEW MORE OF HER MAD MOMENTS IN ACT THREE MS. ANDERSON'S VOICE IS SLIGHTLY HARSHER AND DRIER THAN JOAN SUTHERLAND'S THE ELVIRA STANDARD FOR OUR TIME AND SHE LACKS DAME JOAN'S FULL ROUNDED LOVELINESS OF TONE BUT HER SINGING IN THIS CHALLENGING BEL CANTO ROLE WAS PRECISE POWERFUL VARIED EXPRESSIVE AND SUPERBLY CONTROLLED WITH SOME REAL HYSTERIA IN THE TRILLS IF ONLY WE COULD HAVE HEARD IT AT A CONCERT WITHOUT THE DUMB DUN SETS AND THE WAR WOUNDED LA CLEMENZA DI TITO WAS PLAYED IN EIGHTEENTH CENTURY COSTUMES AGAINST ONE HUGE WORN ROMAN BRICK WALL PUNCTURED BY A SURREALIST HOLE ALTHOUGH HE ACCEPTED THE FOOLISH HOUSTON SLASH GLASGOW NOTION OF A RAGGLE TAGGLE ROMAN CHORUS OUT OF HOGARTH DIRECTOR ALBERT TAKAZAUCKAS MANAGED TO MOVE AND MOTIVATE HIS GENERALLY EXCELLENT CAST IN A MANNER THAT OFTEN MADE BOTH HUMANE AND THEATRICAL SENSE NO EASY FEAT FOR A RITUALIZED OPERA SERIA STAGED IN AN INHOSPITABLE SET EVEN WITH ALL OF MOZART'S FINE MUSIC TO CARRY IT ALONG FREDERICA VON STADE WHO WILL APPARENTLY NEVER GROW OLD WAS AN EVEN MORE ENGAGING SEXTUS VOCALLY AND DRAMATICALLY THAN SHE WAS AT HER DEBUT IN THE ROLE HERE THIRTY TWO YEARS AGO AND DONALD RUNNICLES THE COMPANY'S MUSICAL DIRECTOR PROVED HE COULD HANDLE LATE MOZART WITH AS MUCH TACT AND INSIGHT AS HE HANDLES BIGGER GUN COMPOSERS THE ONE GENUINELY NEW TO THE WORLD PRODUCTION WAS THE S. F. O.'S FIRST I VESPRI SICILIANI BY VERDI IN A PRODUCTION BY DIRECTOR CHRISTOPHER ALDEN AND HIS DESIGNING PARTNER PAUL STEINBERG SIR CHARLES MACKERRAS THE COMPANY'S NEW PRINCIPAL GUEST CONDUCTOR LED THE BAND WITH THE INTELLIGENCE THAT IS HIS TRADEMARK AROUND THE WORLD CAROL VANESS CHRIS MERRITT TIMOTHY NOBLE AND JAMES MORRIS SANG THE LEADS WITH THEIR USUAL HIGH VOCAL PROFICIENCY BUT NONE OF THIS COULD OVERCOME THE STUPIDITY OF WHAT WAS GOING ON ONSTAGE WHICH INCLUDED SUCH NONSENSE AS A SCRAMBLING MASS ABDUCTION OF SICILIAN MAIDENS BY NINETEENTH CENTURY FRENCH SOLDIERS THOUGH THE WORK IS SET IN ONE THOUSAND TWO HUNDRED EIGHTY TWO INSIDE TILTING SYMBOLIC NEOFASCIST SETS FORTUNATELY I HAD GOT MY VERDI FIX A WEEK EARLIER IN LOS ANGELES WHERE LEONA MITCHELL AND PLACIDO DOMINGO SANG AMELIA AND KING GUSTAVUS A. K. A. RICCARDO IN UN BALLO IN MASCHERA WHEN THEY JOINED FORCES FOR THE GREAT SECOND ACT DUET TWO STRONG MATURE AND DISTINCTIVE VOICES TWINED INTO A SINGLE GOLDEN SOUND IN SAN FRANCISCO'S QUOTE MEISTERSINGER QUOTE IT WAS PRIMARILY MAESTRO RUNNICLES AND THE OPERA ORCHESTRA WHO ALLOWED US TO ADMIRE MUCH OF WHAT WAGNER WROTE OVERCOMING MAJOR WEAKNESSES IN CASTING AND DIRECTION AT FIRST I THOUGHT BERND WEIKL A FINE SINGING ACTOR FROM HAMBURG WAS PLAYING HANS SACHS AS SOMEONE TOO YOUNG AND VIGOROUS FOR THE RESPECT AND AUTHORITY HE SUPPOSEDLY COMMANDS BUT HIS GRUMPY SHOEMAKER POET BECAME MORE CREDIBLE AND CONVINCING AS THE OPERA PROGRESSED HIS CHRISTENING OF THE PRIZE SONG AS HE RUEFULLY GRANTS HIS BLESSING TO THE YOUNG COUPLES NONE OF THE FOUR QUITE GOOD ENOUGH THOUGH BEN HEPPNER'S SWEET SOARING TENOR DESERVED A PRIZE WAS A HEARTBREAKER AS IT OUGHT TO BE AFTER GRUMBLING SILENTLY FOR TWO OR THREE HOURS I MELLOWED ALONG WITH THE MUSIC OF ACT THREE AND LEFT CONTENT FRIENDS OF MINE THOUGHT THAT DAVID HOCKNEY'S SPECTACULAR DECORS AND IAN FALCONER'S NO LESS SPECTACULAR COSTUMES DETRACTED FROM THE EMOTIONAL SERIOUSNESS OF TURANDOT BUT AS I'VE NEVER DETECTED ANY IN IT I REVELED IN THEIR DAZZLING CONTRIBUTIONS WERE EVER REDS SO UTTERLY RED GREENS SO HOLLYWOOD GREEN BLUES SO MOODILY BLUE IS THERE A LIVING STAGE ARTIST WHO CAN PLAY MORE KNOWINGLY THAN DAVID HOCKNEY WITH ORGANIC SHAPES SUDDEN WASHES OF LIGHT RUNAWAY PERSPECTIVES GONE MAD I WOULD RANK HIS VISUAL CONCEPTION OF TURANDOT ON A LEVEL WITH HIS CLASSIC THE RAKE'S PROGRESS AND THE MAGIC FLUTE AND WELL ABOVE HIS TRISTAN AND DIE FRAU OHNE SCHATTEN WHICH I SAW IN LOS ANGELES JUST LAST MONTH WITH THREE EXCELLENT FEMALE LEADS GWYNETH JONES ELLEN SHADE AND JANE HENSCHEL THIS TURANDOT CONFIRMED MY SUSPICION THAT MR. HOCKNEY'S UNIQUE VISUAL STYLE IS ILL ADAPTED TO OPERAS THAT ARE THEMSELVES DEVOID OF ANYTHING LIKE HIS OWN CHILDLIKE WIT AND DROLL IMAGINATION HE MAY SOMETIMES TWIST OTHER MEN'S OPERAS TO FIT HIS STYLE BUT IN THE CASE OF TURANDOT I DEFINITELY THINK HE IMPROVED IT DONALD RUNNICLES THE REAL STAR OF THIS SEASON EXTRACTED EVERY OUNCE OF ENERGY FROM PUCCINI'S VOLUPTUOUS SCORE BUT I WAS DISMAYED TO HEAR EVA MARTON THE OPENING NIGHT PRINCESS GASPING WOBBLING STRAINING FOR HER HIGH NOTES SO I WENT AGAIN TO SEE IF A MORE SYMPATHETIC SOPRANO COULD PULL THE WHOLE THING TOGETHER AND SHE DID EALYNN VOSS THE SECOND TURANDOT EMITS A MOLTEN FLOW OF GORGEOUS SOUND AND PROMISINGLY RECALLS HER TEACHER BIRGIT NILSSON THE SECOND TENOR VLADIMIR POPOV WAS ALSO BETTER THAN THE FIRST MICHAEL SYLVESTER UNFORTUNATELY IT WAS THE FIRST CAST THAT P. B. S. VIDEOTAPED FOR ITS NEW YEAR'S DAY TELECAST IT WAS STILL WORTH SWITCHING TO AFTER THE BOWL GAMES TO HEAR THE ORCHESTRA AND CHORUS AND TO SEE WHATEVER YOUR T. V. SET COULD CAPTURE OF THOSE ASTONISHING COSTUMES AND SETS JUST TWO MONTHS AGO THE ZOBS FAMILY LIVED IN A BIG HOUSE ON A WOODED ACRE NEAR OTTAWA AND ENJOYED MANY LUXURIES OF THE WEST TWO CARS AN ELECTRIC GARAGE DOOR BABY SITTERS AND EATING OUT IN RESTAURANTS TODAY AS NEW RESIDENTS OF LATVIA THEY RENT FOUR ROOMS IN A CRUMBLING HOUSE OUTSIDE RIGA WITH A LITTERED MUD PIT FOR A FRONT YARD AND NOT ENOUGH HOT WATER FOR BATHING AND DOING THE LAUNDRY THEIR YEAR OLD SON LAURIS HAS DEVELOPED RASHES THEIR FIVE YEAR OLD SON DAINIS WHO DOESN'T SPEAK LATVIAN CAN'T UNDERSTAND HIS SCHOOLMATES AND SLEEPS FITFULLY THE ZOBSES HAVEN'T MADE NEW FRIENDS AND THEY HAVE CRASHED THEIR PONTIAC QUOTE WE'RE SUFFERING HERE QUOTE SAYS KARLIS ZOBS ONE OF SEVERAL HUNDRED WESTERNERS OF LATVIAN DESCENT WHO HAVE RECENTLY COME TO LIVE IN THIS FORMER SOVIET REPUBLIC WE'RE OUT OF OUR ELEMENT BUT MR. ZOBS A FIFTY SIX YEAR OLD CONSTRUCTION CONTRACTOR AND A U. S. CITIZEN WHO LEFT LATVIA AS A CHILD FEELS THAT HIS HOMELAND NEEDS HIM AND HIS BUILDING SKILLS IF YOU'VE TALKED FOR FIFTY YEARS ABOUT GETTING YOUR COUNTRY BACK AND YOU GET IT BACK THERE'S A MOMENT OF TRUTH EITHER YOU GO THERE YOURSELF OR ALL YOUR TALK WAS A LIE IT'S A MATTER OF PERSONAL INTEGRITY HIS WIFE INTA WHO WAS BORN IN CANADA TO LATVIAN PARENTS ISN'T AS DEVOTED TO THE PRINCIPLE MOVING HERE WAS SUCH A SHOCK SHE SAYS THE ZOBSES ARE PART OF AN ODD COUNTER TREND IN IMMIGRATION IN EASTERN EUROPE PEOPLE DRAWN TO LATVIA BY PATRIOTISM A SENSE OF OBLIGATION AND IN SOME CASES ECONOMIC OPPORTUNITY MOSTLY THE NEWCOMERS ARE CHILDREN OF LATVIANS WHO ESCAPED IN NINETEEN FORTY FOUR WHEN THE SOVIETS OVERRAN THIS BALTIC NATION FOR MANY IT IS A TRIUMPHANT RETURN THEY ARE LAWYERS BUSINESSMEN AND YOUNG COLLEGE GRADUATES ARRIVING BY JET IN A COUNTRY THEIR PARENTS LEFT ON FOOT AS REFUGEES BUT THEY ARE FINDING THAT LATVIA ISN'T THE MAJESTIC PLACE OF THEIR PARENTS' REVERIES THOUGH THE COUNTRY IS MOVING QUICKLY TO RAISE ITS LIVING STANDARDS THOSE ACCUSTOMED TO BETTER CONDITIONS FIND IT HARD TO MAKE A HOME HERE ILMARS LEJINS A TWENTY TWO YEAR OLD SWEDE BORN TO LATVIAN IMMIGRANTS FOUND THAT OUT WHEN HE WAS BEATEN UP ON THE STREETS OF RIGA BY A GROUP OF RUSSIANS WHO WERE DRUNK AND ANNOYED THAT HE COULDN'T SPEAK RUSSIAN PETERIS AND LIENE KALNINS A YOUNG COUPLE WHO HAIL RESPECTIVELY FROM THE U. S. AND CANADA DISCOVERED THE DIFFERENCE WHEN THEY TRIED TO VISIT AN ANCESTRAL HOME THAT HAD BEEN BULLDOZED TO MAKE WAY FOR A SOVIET COMMUNAL FARM WHEN THEY WENT TO VISIT A RELATIVE IN A RIGA HOSPITAL THEY FOUND CATS AND COCKROACHES WALKING THE FLOOR WHEN OUR GRANDPARENTS LIVED HERE BEFORE THE WAR YOU COULD HONESTLY SAY IT WAS PART OF EUROPE SAYS MRS. KALNINS WHO ARRIVED HERE WITH HER HUSBAND IN NINETEEN NINETY QUOTE TODAY YOU CAN'T SAY THAT IT'S WAY BEHIND MR. KALNINS RUNS A COMPUTER GRAPHICS BUSINESS MRS. KALNINS WORKS AS A TRANSLATOR ELMARS TANNIS WHO OPENED FREDI'S BAR HERE LAST WINTER WITH FELLOW CANADIAN PETERIS RUGELIS KNEW HE WASN'T IN TORONTO ANYMORE WHEN THUGS KNOCKED ON HIS DOOR TO COLLECT PROTECTION MONEY TEN PERCENT OF HIS PROFITS HE COMPLIED HAVING HEARD SCUTTLE BUTT THAT IT COSTS ONLY TWO HUNDRED FIFTY DOLLARS TO HAVE SOMEONE KILLED IN LATVIA WHERE MONTHLY WAGES AVERAGE LESS THAN ONE HUNDRED DOLLARS COMPOUNDING THEIR PROBLEMS THE NEW ARRIVALS HAVE STIRRED SOME RESENTMENT AMONG NATIVE LATVIANS EVEN THE POOREST RETURNEE IS RICH BY LATVIAN STANDARDS SOME OF THE NEWCOMERS CAN AFFORD TO SHOP IN THE FASHIONABLE STORES OPENING IN RIGA AND THEY MAY GET THE BEST JOBS WITH FEW EXCEPTIONS THE FOREIGNERS HAVEN'T GIVEN UP THEIR OTHER CITIZENSHIP A SIGN THAT THEY ARE RELUCTANT TO TRULY CAST THEIR LOT WITH LATVIA FROM THEIR STANDPOINT MANY ARE SACRIFICING A LOT BUT THAT ISN'T HOW SOME LATVIANS SEE IT THEY DON'T WANT TO FACE HARD TIMES AND CHANGE THE WAY THEY ARE USED TO LIVING SAYS KASPARS KAULINS THE LATVIAN BORN DEPUTY EDITOR OF DIENA THE COUNTRY'S LARGEST DAILY SOME REALLY WANT TO HELP US REBUILD THE STATE BUT AT THE SAME TIME IT SEEMS SOME HAVE COME ONLY BECAUSE OF THEIR BIG AMBITIONS LATVIA CONTROLLED BY FOREIGN POWERS FOR CENTURIES WAS INDEPENDENT BETWEEN NINETEEN EIGHTEEN AND NINETEEN FORTY WHEN IT WAS TAKEN OVER BY THE NAZIS BEFORE THE SOVIETS CAME SOME TWO HUNDRED THOUSAND LATVIANS FLED TO THE WEST BEFORE THE END OF NINETEEN FORTY FOUR AFTER LATVIA REGAINED ITS INDEPENDENCE IT OFFERED CITIZENSHIP TO WESTERN LATVIANS THE SEVERAL HUNDRED WESTERNERS WHO HAVE MADE GOOD ON THEIR PARENTS' INTENTION TO RETURN TO LATVIA SOMEDAY ARE STATISTICALLY NEGLIGIBLE IN A COUNTRY OF TWO POINT SIX MILLION THAT IS ACTUALLY LOSING POPULATION BUT THEIR PRESENCE IS FELT THE JUSTICE MINISTER DEFENSE MINISTER WELFARE MINISTER AND HEAD OF LATVIA'S CUSTOMS DEPARTMENT ALSO ARE WESTERNERS OTHER WESTERNERS ARE OPENING BUSINESSES ADVISING THE GOVERNMENT AND SERVING AS LATVIAN DIPLOMATS IN OTHER COUNTRIES IT SEEMS LIKE AN AWESOME RESPONSIBILITY SAYS VALDIS V. PAVLOVSKIS A LATVIAN BORN CALIFORNIA CITY PLANNER TURNED DEFENSE MINISTER GROWING UP IN QUOTE EXILE QUOTE IN THE WEST CHILDREN OF REFUGEES SPOKE LATVIAN AT HOME AND WENT TO LATVIAN SUNDAY SCHOOLS CAMPS AND FOLK DANCES THEY HEARD STORIES ABOUT AMBER SHORES AND LARGE FAMILY HOMES WITH SERVANTS' QUARTERS PARENTS CALLED RIGA THE PARIS OF THE NORTH THEY WORE SILVER ROPE RINGS TO SHOW SOLIDARITY I WAS RAISED TO BE HERE SAYS MR. LEJINS WHO HAS NO DOUBT ABOUT HIS TRUE NATIONALITY I'M NOT A SWEDE I'M A LATVIAN JUST BECAUSE YOU'RE BORN IN A BARN DOESN'T MEAN YOU'RE A HORSE SOME WESTERN LATVIANS FEEL THEIR CONSCIENCE TUGGING THEM BACK INESE BIRZNIECE A FORTY TWO YEAR OLD ATTORNEY FROM LOS ANGELES IS ONE OF SIXTEEN WESTERNERS IN LATVIA'S ONE HUNDRED MEMBER PARLIAMENT IN NINETEEN NINETY SHE GAVE UP A ONE HUNDRED THOUSAND DOLLAR SALARY TO WORK HERE FOR SEVEN HUNDRED DOLLARS A YEAR BUT SHE FEELS FULFILLED BY HER WORK AS CHAIRWOMAN OF PARLIAMENT'S HUMAN RIGHTS COMMITTEE AN IMPORTANT POSITION IN THIS EMERGING DEMOCRACY I DON'T HAVE TO GO TO THERAPISTS AS MANY DO IN CALIFORNIA TO ASK WHY AM I HERE SHE SAYS QUOTE I KNOW THE ANSWER I'M DOING WHAT I CAN TO IMPROVE THE WORLD FILIP KLAVINS HAD A SIX FIGURE INCOME AS A REAL ESTATE LAWYER IN NEW YORK WHERE HE LIVED ON THE UPPER EAST SIDE AND HAD BECOME JADED I WAS HELPING ONE INCREDIBLY RICH GUY PASS MONEY TO ANOTHER INCREDIBLY RICH GUY AND THAT WAS IT HE SAYS HE HAS SET UP A LAW OFFICE IN RIGA WITH RAYMOND SLAIDINS A CALIFORNIA LAWYER WHO LEFT BEHIND A NINETY THOUSAND DOLLAR JOB AND A SAAB TURBO IN LATVIA AT LEAST WE'RE MAKING A DIFFERENCE MR. KLAVINS SAYS HE HAS REGULAR MEETINGS WITH THE PRIME MINISTER AND HAS BIG CLIENTS HERE TOO INCLUDING KELLOGG COMPANY AND COCA COLA COMPANY THERE ARE PARTICULAR PSYCHIC REWARDS BACK IN THE WEST LATVIANS ARE JUST ANOTHER ETHNIC MINORITY THE NEWCOMERS BRAVE HARDSHIPS BECAUSE THEY FEEL LIBERATED THEY HEAR LATVIAN SPOKEN ON BUSES AND WRITTEN ALL OVER NEWSSTANDS THESE ARE ALL MY PEOPLE SAYS JANA TETERE WHO ARRIVED FROM ENGLAND IN NINETEEN NINETY FOR SOME THE SACRIFICES THEY MAKE IN LIVING STANDARDS ARE OUTWEIGHED BY OPPORTUNITIES HERE AROUND FREDI'S BAR YOUNG WESTERNERS WHO HAD LACKLUSTER JOB PROSPECTS AT HOME TALK ABOUT HOW THEY HAVE BECOME BIG FISH QUOTE IT'S THE WILD WILD EAST QUOTE SAYS MR. TANNIS WHOSE BAR HAS PROFIT MARGINS OF THIRTY PERCENT TO FORTY FIVE PERCENT ON ITS MONTHLY SALES OF FIVE THOUSAND DOLLARS THERE'S MONEY TO BE MADE DESPITE THE PROTECTION MONEY THAT MUST BE PAID TO THE RUSSIAN MAFIA FOR NILS MELNGAILIS FROM BOSTON THE CHOICE WAS EASY BY TAKING A POSTING IN RIGA FOR COOPERS AND LYBRAND HE BECAME A PARTNER AT TWENTY EIGHT ONE OF THE ACCOUNTING FIRM'S YOUNGEST BUT MANY NEWCOMERS ARE DISILLUSIONED THEY HAVE TO ADJUST TO JUST SIX HOURS OF DAYLIGHT IN THE DEAD OF WINTER GRAY SKIES AND HEADLIGHTS THAT COME ON AT NOON THE GOVERNMENT DOESN'T MAKE HEATING FUEL AVAILABLE UNTIL NOVEMBER AND MANY CASHIERS STILL DO THEIR COMPUTATIONS ON AN ABACUS THE NEW ARRIVALS WITNESS MOB VIOLENCE IN THE STREETS GET USED TO EATING BACON FAT ON RYE BREAD AND FIND TOILET PAPER SO STIFF IT CAN DOUBLE AS STATIONERY MS. TETERE HAD SUCH A TOUGH TIME HERE THAT SHE MOVED BACK TO ENGLAND BUT SHE NOW IS GIVING RIGA ANOTHER TRY WE WERE BROUGHT UP TO BELIEVE THIS WAS THE LAND OF MILK AND HONEY THAT EVERY PERSON WAS GOOD AND EVERYTHING WAS PERFECT SHE SAYS IT WASN'T IN ANY WAY SIMILAR TO WHAT MY PARENTS SAID NOBODY HAD WARNED HER FOR INSTANCE THAT SHE WOULD HAVE ROACHES IN HER OFFICE FAX MACHINE AT THE WORLD FEDERATION OF FREE LATVIANS SHE HADN'T EXPECTED TO SEE CHILDREN BEGGING ALL OVER TOWN NOR WAS SHE PREPARED FOR THE NEW NATIONAL PASTIMES AS SHE PUTS IT PUSHING SHOVING AND SPITTING INSTEAD OF A WARM EMBRACE FROM HER FATHER'S RELATIVES IN LATVIA THEY DID NOTHING BUT ASK HER FOR MONEY SHE COMPLAINS SHE ALSO SAYS THAT FOR THREE YEARS SHE DATED A LATVIAN WHO EVENTUALLY DUMPED HER FOR AN EIGHTEEN YEAR OLD NATIVE DECLARING WESTERN WOMEN TOO EMANCIPATED THE ZOBSES DID IN SOME WAYS ANTICIPATE WHEN THEY LEFT OTTAWA THAT IT WOULDN'T BE EASY FOR THEM MR. ZOBS HADN'T LIVED IN LATVIA SINCE HE FLED AS A CHILD WITH HIS PARENTS TO THE U. S. MRS. ZOBS THIRTY SIX THE DAUGHTER OF WEALTHY LATVIANS WHO HAD GONE TO CANADA GREW UP IN THE CARE OF A NANNY AND ENJOYED A QUOTE PAMPERED LIFE QUOTE SHE SAYS I NEEDED A LITTLE ADVENTURE MRS. ZOBS SAYS BUT SHE GOT MORE THAN SHE BARGAINED FOR SOON AFTER THEY ARRIVED NOVEMBER SIXTH THE TEMPERATURE DROPPED TO FOURTEEN DEGREES FAHRENHEIT THEN THE SNOW CAME THEN THE MUD THE ZOBSES CAN'T GET THEIR MAYTAG TO WORK SO MRS. ZOBS DOES THE LAUNDRY IN THE BATHTUB THE HOT WATER TURNS COLD ONCE THE TUB IS FILLED TO THE DEPTH OF AN INCH AND A HALF MRS. ZOBS BATHES WITH THE TWO BOYS IN THE PUDDLE DAINIS ENROLLED AT THE ONLY MONTESSORI SCHOOL IN THE AREA TELLS HIS MOTHER HE IS AFRAID OF BEING MURDERED IN HIS SLEEP TO HIM THE HOUSE IS A SLUM BY LATVIAN STANDARDS IT IS AVERAGE DAINIS SAYS HE MISSES HIS FRIENDS IN CANADA THEY HAVE BETTER TOYS HE SAYS MR. ZOBS HAS HIT A GLASS WALL TRYING TO BEFRIEND LATVIANS THEY THINK WE'RE HERE TO GET SOMETHING THAT BELONGS TO THEM HE SAYS THE COUPLE PAY THREE HUNDRED DOLLARS A MONTH IN RENT TEN TIMES THE MARKET RATE WHEN HE MENTIONS THAT TO LATVIANS HE SAYS THEY SAY THAT'S THE WAY IT OUGHT TO BE MR. ZOBS PLANS TO STAY DESPITE THE PROBLEMS HE WANTS TO OPEN A FASTENER BUSINESS MAKING NAILS SCREWS AND SUCH HE CAN ALSO EARN ABOUT TWENTY FIVE DOLLARS A DAY IN CONSTRUCTION QUOTE THE ONLY WAY I COULD NOT STICK IT OUT IS AN ABSOLUTE DIVORCE THREAT QUOTE HE SAYS THIS IS MY LAST HURRAH AND I'M HAVING FUN MRS. ZOBS IS SETTLING IN TOO SLOWLY SHE JOINED A CHOIR SIGNED DAINIS UP FOR TENNIS LESSONS AND IS LOOKING FOR A PLAY GROUP FOR LAURIS WHEN IT'S WARM ENOUGH SHE WALKS ON THE WHITE SAND ALONG THE GULF OF RIGA ADMIRING THE BIRCHES AND EVERGREENS THIS IS THE STUFF MY NANNY USED TO TELL ME ABOUT SHE SAYS SHE ALSO HOPES TO GET BACK A ONE HUNDRED FIFTY ACRE FAMILY FARM THAT WAS TURNED INTO A PARK BY THE SOVIETS BUT MRS. ZOBS DOESN'T MAKE ANY PROMISES SHE GAVE HER TENANTS IN OTTAWA ONLY A ONE YEAR LEASE AND SHE BOUGHT ROUND TRIP TICKETS TO LATVIA WITH AN OPEN RETURN SHE WEARS A MAPLE LEAF PIN ON HER SHIRT AND HANGS A CANADIAN FLAG IN THE BOYS' ROOM I'LL ALWAYS HAVE TIES HERE BUT IT TAKES AN AWFUL LOT TO PULL YOU HERE SHE SAYS I CONSIDER MYSELF CANADIAN OF LATVIAN HERITAGE BUT CANADIAN FIRST AND FOREMOST THERE CAN SURELY BE NO MORE DAMNING CHARGE BROUGHT AGAINST A FEMINIST THAN TO BE CALLED QUOTE VICTORIAN QUOTE YET THAT IS THE WORD THAT IS CROPPING UP AGAIN AND AGAIN TO DESCRIBE THE SCHOOL OF FEMINISM LED BY CATHARINE MACKINNON THESE ARE THE FEMINISTS WHO WOULD PROHIBIT PORNOGRAPHY CENSOR HATE SPEECH PUNISH SEXUAL INNUENDOES ON THE GROUND OF SEXUAL HARASSMENT PRESCRIBE DETAILED CODES OF SEXUAL CONDUCT MAKE DATE RAPE AS ODIOUS AN OFFENSE AS VIOLENT RAPE AND SUBJECT OFFENDERS AND POTENTIAL OFFENDERS TO SENSITIVITY AND CONSCIOUSNESS RAISING SESSIONS IN A RECENT ISSUE OF NEWSWEEK SUSAN FALUDI A DEFENDER OF MS. MACKINNON AND HERSELF A MILITANT FEMINIST HOTLY DENIED THAT EITHER WAS ANY KIND OF VICTORIAN OR EVEN NEO VICTORIAN AS ONE WITH A PROPRIETARY INTEREST IN VICTORIANISM I MUST SAY THAT ON THIS ISSUE IF ON NO OTHER MS. FALUDI IS RIGHT I KNOW THE VICTORIANS AND THESE FEMINISTS ARE NO VICTORIANS THERE IS ALL THE DIFFERENCE IN THE WORLD BETWEEN THE VICTORIAN CODE OF MANNERS AND MORALS SO DEEPLY EMBEDDED IN TRADITION AND CONVENTION THAT IT WAS LARGELY INTERNALIZED AND VERY NEARLY UNCONSCIOUS AND ONE THAT IS ARTIFICIALLY CONTRIVED OFFICIALLY LEGISLATED AND COERCIVELY ENFORCED THE VICTORIANS WOULD HAVE BEEN AS MUCH APPALLED BY THE OVERTNESS AND FORMALITY OF THE NEW REGULATIONS ABOUT SEXUAL CONDUCT EXPLICIT CONSENT REQUIRED FOR EVERY STAGE OF THE SEXUAL RELATION AS BY THE KIND OF CONDUCT PROMISCUITY THEY WOULD HAVE CALLED IT IMPLICITLY SANCTIONED BY THOSE REGULATIONS THEY WOULD ALSO HAVE BEEN APPALLED BY THE NEW SPECIES OF MORALIST UNDERTAKING THIS NEW MORAL REFORMATION THE NEW VICTORIAN RESEMBLES NOTHING SO MUCH AS MRS. GRUNDY A MINOR CHARACTER IN A MINOR PLAY A PRE VICTORIAN PLAY AT THAT WHO INTIMIDATED HER NEIGHBOR BY THE THOUGHT WHAT WILL MRS. GRUNDY SAY BUT MRS. GRUNDY WAS A FIGURE OF MOCKERY IN THE PLAY AND REMAINED THAT WHEN SHE WAS IMMORTALIZED IN THE LANGUAGE AS A SYMBOL OF THE NARROW MINDED SELF RIGHTEOUS SELF APPOINTED SOCIAL CENSOR THE MRS. GRUNDYS OF OUR DAY COMMAND THE RESPECT OF THOSE WHO PROFESS TO BE IN THE VANGUARD OF ENLIGHTENED THOUGHT AND SOME OF THEM THE ENFORCERS OF THE NEW MORALITY FACILITATORS AS THEY ARE SOMETIMES CALLED ENJOY ALL THE PERQUISITES OF OFFICIAL PAID POSITIONS IN CORPORATIONS AND UNIVERSITIES THE NEW VICTORIAN BRINGS TO MIND ANOTHER FICTIONAL CHARACTER MRS. JELLYBY OF BLEAK HOUSE WHO IS TOO ENGROSSED IN THE AFFAIRS OF THE NATIVES OF BOORIOBOOLA GHA TO ATTEND TO HER OWN BROOD OF HUNGRY DIRTY NEGLECTED CHILDREN FOR DICKENS SHE IS THE EXEMPLAR OF QUOTE TELESCOPIC PHILANTHROPY QUOTE HER EYES HAVING THE QUOTE CURIOUS HABIT OF SEEMING TO LOOK A LONG WAY OFF AS IF THEY COULD SEE NOTHING NEARER THAN AFRICA QUOTE TODAY'S MORALISTS HAVE THAT SAME FARAWAY FANATICAL GLINT IN THEIR EYE TELESCOPIC MORALITY WE MIGHT CALL IT TELESCOPIC MORALITY DISDAINS THE VALUES OF EVERYDAY LIFE AS EXPERIENCED BY ORDINARY PEOPLE THE BOURGEOIS VALUES OF FAMILY FIDELITY SOBRIETY CIVILITY PERSONAL RESPONSIBILITY INSTEAD IT DEVISES A NEW MORALITY THAT IS MORE INTRUSIVE AND REPRESSIVE THAN THE OLD BECAUSE IT IS MORE RECONDITE BASED NOT ON FAMILIAR ACCEPTED PRINCIPLES BUT ON NOVEL REMOTE ONES AS IF DESIGNED FOR ANOTHER CULTURE OR TRIBE THUS THE NEW VICTORIANS DO NOT CONDEMN PROMISCUITY THEY CONDEMN ONLY THOSE MEN WHO FAIL TO OBTAIN THE REQUISITE CONSENT FOR EVERY PHASE OF SEXUAL INTERCOURSE THEY DO NOT DENOUNCE DRUNKENNESS THEY DENOUNCE ONLY THOSE MEN WHO TAKE ADVANTAGE OF THEIR PARTNERS' DRUNKENNESS THEY DO NOT EXPEND THEIR INDIGNATION UPON THOSE WHO COMMIT THE BRUTAL RAPES THAT ARE ALL TOO COMMON IN OUR SOCIETY THEY DISTRACT ATTENTION FROM THAT PROBLEM AND EVEN TRIVIALIZE IT BY MAKING A GREAT ISSUE OF DATE RAPE DEFINED SO LOOSELY AS TO INCLUDE CONSENSUAL INTERCOURSE THAT IS BELATEDLY REGRETTED BY THE WOMAN THEY DO NOT PROPOSE TO DO ANYTHING ABOUT THE KINDS OF CRIME VIOLENT IRRATIONAL REPEATED AND REPEATEDLY UNPUNISHED CRIME THAT IS THE MOST PRESSING CONCERN OF MOST CITIZENS THEY PROPOSE ONLY TO PASS NEW LEGISLATION TO PUNISH SPEECH OR CONDUCT NORMALLY REGARDED AS UNCIVIL RATHER THAN ILLEGAL IT IS MORE THAN POLITICAL CORRECTNESS THAT IS AT ISSUE HERE ALTHOUGH IT IS THAT AS WELL IT IS THE TELESCOPIC VISION OF ACADEMICS WHO LIKE MRS. JELLYBY LOOK A LONG WAY OFF FOR CAUSES TO AGITATE THEM RATHER THAN FACE UP TO THE REALITIES OF THEIR OWN SOCIETY EVEN TO THE REALITIES OF THEIR OWN ACADEMIES THE SAME PROFESSORS WHO WOULD EXPEL A STUDENT FOR VIOLATING THE NEW CODE OF SEXUAL CONDUCT WOULD BE INDIGNANT IF SUCH A CODE WERE APPLIED TO THEIR PERSONAL LIVES ONE CAN HEAR THEIR PASSIONATE APPEALS TO ACADEMIC FREEDOM AND THE SANCTITY OF TENURE IT IS NOT SO LONG AGO THAT ACADEMIC CONTRACTS INCLUDED A CLAUSE PERMITTING THE DISMISSAL OF A PROFESSOR ON THE GROUNDS OF MORAL TURPITUDE WHEN WAS THE LAST TIME THAT CLAUSE WAS INVOKED OR EVEN INCLUDED IN A CONTRACT TELESCOPIC MORALITY HAS THE EFFECT NOT ONLY OF DISTANCING THE NEW MORALITY FROM THE OLD IT ALSO DISTANCES MORAL RESPONSIBILITY FROM THE MORAL AGENT THIS IS NOT ALTOGETHER NEW WE HAVE LONG BEEN FAMILIAR WITH THE TRANSFERENCE OF RESPONSIBILITY FROM THE INDIVIDUAL TO SOCIETY FROM THE CRIMINAL TO THE ECONOMIC AND SOCIAL CONDITIONS THAT ARE THE PRESUMPTIVE QUOTE CAUSES QUOTE OF HIS CRIMINALITY WHAT IS NEW ABOUT THE NEW MORALITY IS THE SHIFT OF RESPONSIBILITY FROM ONE INDIVIDUAL TO ANOTHER WHEN SOCIETY CAN NO LONGER PLAUSIBLY BE BLAMED FOR THE MORAL FAILING OF AN INDIVIDUAL ANOTHER INDIVIDUAL IS MADE THE FALL GUY IN CASES OF RAPE OR RACIAL CONFLICTS THE NEW VICTORIAN ALMOST INVARIABLY PLACES THE BURDEN OF GUILT UPON THE PRIVILEGED OR HEGEMONIC PERSON THE MAN RATHER THAN THE WOMAN THE WHITE RATHER THAN THE BLACK BY THE SAME TOKEN THE VICTIM IS DEFINED AS SUCH BY VIRTUE OF HIS OR MORE OFTEN HER UNPRIVILEGED STATUS THUS EVEN WHEN MORAL RESPONSIBILITY SEEMS TO BE ASSIGNED TO AN INDIVIDUAL THE INDIVIDUAL FUNCTIONS NOT AS AN INDEPENDENT RESPONSIBLE MORAL AGENT BUT AS A SURROGATE FOR A CLASS RACE OR GENDER THE NEW VICTORIANS IT IS EVIDENT HAVE LITTLE IN COMMON WITH THE OLD OUR LATTER DAY MRS. GRUNDYS AND MRS. JELLYBYS FIND IMMORALITY AND EVEN CRIMINALITY WHERE THERE HAD FORMERLY BEEN IMPROPRIETY AND IMPRUDENCE THEIR EUPHEMISMS ARE EVEN MORE OBFUSCATORY THAN THE OLD LIMBS INSTEAD OF LEGS IS RELATIVELY INNOCUOUS COMPARED WITH DIFFERENTLY ABLED IN PLACE OF HANDICAPPED AND THE CODE OF BEHAVIOR THEY SO ZEALOUSLY MONITOR IS BOTH MORE PERMISSIVE AND MORE REPRESSIVE THAN THE OLD CASUAL SEXUAL INTERCOURSE IS CONDONED WHILE A FLIRTATIOUS REMARK MAY BE GROUNDS FOR LEGAL ACTION IT IS A CURIOUS COMBINATION OF PRUDERY AND PROMISCUITY THAT IS ENSHRINED IN THE NEW MORAL CODE AN OLD VICTORIAN WOULD CALL IT CENSORSHIP WITHOUT MORALITY WHAT THE NEW VICTORIANS HAVE CREATED IS A SPECIES OF MORAL CORRECTNESS DESIGNED TO COMPLEMENT THE PREVAILING POLITICAL CORRECTNESS THEIR REAL KINSHIP IS NOT TO THE VICTORIANS BUT TO ORWELL'S QUOTE BIG BROTHERS QUOTE OR QUOTE BIG SISTERS QUOTE IT MAY BE ONE NEED LOOK NO FURTHER BACK THAN TO NINETEEN EIGHTY FOUR TO FIND THEIR PLACE IN HISTORY MS. HIMMELFARB A HISTORIAN OF VICTORIAN ENGLAND IS THE AUTHOR OF ON LOOKING INTO THE ABYSS AN ESSAY COLLECTION DUE FROM KNOPF NEXT MONTH JAPAN IS SHOOTING FOR FULL MEMBERSHIP IN THE GLOBAL ROCKET CLUB WITH TOMORROW'S SCHEDULED LAUNCH OF ITS MUCH DELAYED H. THE SECOND SPACE VEHICLE BUT CONVINCING THE WORLD THE ROCKET ISN'T A COSTLY WHITE ELEPHANT MAY PROVE DIFFICULT JAPAN'S NEARLY TWO POINT TWO BILLION DOLLAR H. THE SECOND PROGRAM HAS TURNED INTO A CASE OF BUREAUCRATIC OVERSTRETCH BY OPTING FOR AN AMBITIOUS ENGINE DESIGN AND A TIGHT SCHEDULE SPACE AGENCY OFFICIALS OPENED THE DOOR TO TWO SERIOUS EXPLOSIONS DURING DEVELOPMENT WHICH DELAYED THE PROJECT TWO YEARS WORSE THE H. THE SECOND MAY HAVE A DIFFICULT TIME PAYING FOR ITSELF IT WILL ENTER A LAUNCH SERVICES MARKET CROWDED BY THE U. S. EUROPE CHINA AND RUSSIA AND WILL BE MORE EXPENSIVE EVEN IF THE ROCKET'S COST COMES DOWN IT COULD HAVE TROUBLE FINDING CUSTOMERS MANY ANALYSTS EXPECT THE COMMERCIAL SATELLITE MARKET TO START COOLING OFF BY NINETEEN NINETY SEVEN WHEN THE H. THE SECOND WILL START CARRYING COMMERCIAL PAYLOADS QUOTE AFTER WE STARTED THE PROJECT IN NINETEEN EIGHTY SIX WE FOUND THAT THINGS WERE MUCH MORE DIFFICULT THAN WE EXPECTED QUOTE SAYS EIJI SOGAME ASSISTANT EXECUTIVE DIRECTOR FOR LAUNCH SERVICES AT JAPAN'S NATIONAL SPACE DEVELOPMENT AGENCY NOW WE ARE IN A DIFFICULT SITUATION IF WE HAVE TO RELY ON THE H. THE SECOND FOR COMMERCIAL BUSINESS WHY DID JAPAN WHICH HAS A REPUTATION FOR BUILDING HIGH QUALITY GOODS HAVE SUCH TROUBLE MAKING A DECENT ROCKET THE ANSWER SAYS A GREAT DEAL ABOUT JAPAN'S DESIRE TO ESCAPE DEPENDENCE ON U. S. SPACE TECHNOLOGY AND THE PRICE IT HAS BEEN WILLING TO PAY JAPAN HAS BUILT AND LAUNCHED ROCKETS SINCE NINETEEN SEVENTY FIVE BUT ALL DEPENDED AT LEAST PARTLY ON U. S. TECHNOLOGY WITH THE H. THE SECOND THE FIRST ROCKET TO BE ENTIRELY DEVELOPED AND PRODUCED DOMESTICALLY JAPAN CAN SIDESTEP U. S. RESTRICTIONS THAT HAD LIMITED IT TO LAUNCHING ONLY NON MILITARY PAYLOADS AND U. S. APPROVED FOREIGN SATELLITES JAPANESE OFFICIALS INSIST THAT NEITHER RESTRICTION HAS BEEN A PROBLEM BUT SAY THEY WORRIED ABOUT THE POSSIBILITY OF ADDITIONAL ONES POSSIBLY RELATED TO TRADE FRICTION GOVERNMENT OFFICIALS ALSO SAW AN OPPORTUNITY TO BUILD UP JAPAN'S LAGGING AEROSPACE SECTOR WE WANTED TO HAVE OUR OWN HIGH LEVEL OF TECHNOLOGY SAYS MR. SOGAME WITHOUT THE TECHNOLOGY TO BUILD A ROCKET ON ITS OWN WE THOUGHT JAPAN WOULD BE WEAK IN OUR DEVELOPMENT OF SPACE PARTLY AS A RESULT THE SPACE AGENCY CHOSE TO DESIGN THE ROCKET WITH AN ADVANCED HIGH PERFORMANCE PROPULSION SYSTEM CALLED A STAGED COMBUSTION CYCLE ENGINE UNLIKE MORE CONVENTIONAL ENGINES WHICH THROW AWAY A HEFTY PROPORTION OF UNBURNT FUEL PRODUCTS THE STAGED COMBUSTION CYCLE ENGINE BURNS THE FUEL IN TWO STAGES ELIMINATING MUCH OF THE WASTE HAD JAPAN LOOKED WESTWARD HOWEVER IT MIGHT HAVE SEEN THE TROUBLE THE DESIGN CAUSED FOR THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WHICH USED IT FOR THE MAIN ENGINE FOR THE U. S. SPACE SHUTTLE IT'S AN EXTREMELY COMPLEX UNIT THAT HAS TO WORK AT HIGH SPEED AND UNDER HEAVY PRESSURES SAYS BOYCE MIX DEPUTY MANAGER FOR THE SPACE SHUTTLE'S MAIN ENGINES AT NASA'S MARSHALL SPACE FLIGHT CENTER IT'S JUST A VERY DIFFICULT MACHINE TO TUNE UP PROPERLY AND GET WORKING AS A RESULT NASA LOST AT LEAST A YEAR MR. MIX SAYS JAPAN FARED WORSE TWO EXPLOSIONS ONE OF WHICH KILLED AN ENGINEER PROMPTED LENGTHY INTERNAL REEVALUATIONS AND A TWO YEAR LAUNCH DELAY JAPANESE SPACE AGENCY OFFICIALS NOW SAY THE H. THE SECOND IS GLITCH FREE AND READY TO CONTINUE JAPAN'S UNMATCHED RECORD OF FLAWLESS LAUNCHES TOMORROW THE H. THE SECOND WILL CARRY A RE ENTRY EXPERIMENT DESIGNED TO TEST HEAT RESISTANT MATERIALS FOR JAPAN'S SPACE SHUTTLE PROJECT ITS NEXT SEVERAL PAYLOADS ALSO WILL BE SCIENCE PROJECTS OR GOVERNMENT SATELLITES JAPAN HAS HOPES OF MAKING THE H. THE SECOND A COMMERCIAL SUCCESS STARTING IN NINETEEN NINETY SEVEN IT WILL CARRY ONE OR TWO SATELLITES A YEAR FOR PAYING CUSTOMERS SAYS HIROSHI IMAMURA EXECUTIVE VICE PRESIDENT OF ROCKET SYSTEM CORPORATION THE CONSORTIUM CREATED TO HANDLE THE H. THE SECOND'S COMMERCIAL BUSINESS THE H. THE SECOND HOWEVER PROMISES AT BEST TO BE A QUIRKY COMMERCIAL LAUNCH SYSTEM THANKS TO A LONGSTANDING AGREEMENT WITH JAPANESE FISHERMEN WHO MUST CLEAR OUT OF THE RICH FISHING GROUNDS NEAR JAPAN'S SPACE COMPLEX ON THE SOUTHERN ISLAND OF TANEGASHIMA DURING LAUNCHES THE H. THE SECOND ONLY CAN BE LAUNCHED DURING TWO FORTY FIVE DAY QUOTE WINDOWS QUOTE EACH YEAR MOREOVER THE FIRST TWO LAUNCHES EACH WILL COST ROUGHLY ONE HUNDRED FIFTY MILLION DOLLARS CONSIDERABLY MORE THAN THE ONE HUNDRED MILLION DOLLARS TO ONE HUNDRED TWENTY MILLION DOLLARS THAT INDUSTRY ANALYSTS CITE AS A COMPETITIVE BENCHMARK WHAT'S MORE ANY GOVERNMENT ATTEMPT TO SUBSIDIZE THE H. THE SECOND'S COST WOULD LIKELY LEAD TO TRADE FRICTION WITH THE U. S. AND EUROPE MR. IMAMURA HOWEVER CLAIMS THAT WON'T BE NECESSARY SAYING VOLUME PRODUCTION OF THE H. THE SECOND WILL CUT LAUNCH COSTS BY THIRTY PERCENT TO FIFTY PERCENT AND WHILE MANY INDUSTRY EXPERTS EXPECT NINETEEN COMMERCIAL SATELLITES TO BE LAUNCHED THIS YEAR SOME PROJECTIONS SHOW THAT FIGURE FALLING TO AS FEW AS THIRTEEN A YEAR BY THE TURN OF THE CENTURY THERE'S MORE THAN ENOUGH LAUNCH CAPACITY ALREADY THE H. THE SECOND WILL SIMPLY MAKE COMPETITION EVEN MORE CUTTHROAT SAYS ROBERT WHITE MARKETING DIRECTOR FOR COMMERCIAL LAUNCH SERVICES AT GENERAL DYNAMICS CORPORATION THINGS WILL PROBABLY START SLOWING DOWN ABOUT NINETEEN NINETY SEVEN AND PICK UP AGAIN IN TWO THOUSAND FOUR OR TWO THOUSAND FIVE SAYS ARLO BROWN VICE PRESIDENT OF MARTIN MARIETTA CORPORATION'S JAPAN UNIT THESE ESTIMATES DON'T TAKE INTO ACCOUNT SATELLITES LAUNCHED INTO LOW EARTH ORBIT A DEVELOPING MARKET COMPANIES SUCH AS MOTOROLA INCORPORATED HAVE AMBITIOUS PLANS FOR NETWORKS OF LOW ORBITING SATELLITES TO PROVIDE WORLD WIDE TELEPHONE SERVICE BUT SOME LAUNCH INDUSTRY OFFICIALS THINK THE H. THE SECOND HAS A CHANCE TO BE A STRONG COMPETITOR STRICTLY BECAUSE OF ITS PEDIGREE THE ROCKET HAS A TREMENDOUS HERITAGE NO OTHER LAUNCH SUPPLIER HAS HAD ONE HUNDRED PERCENT SUCCESS IN FLIGHT SAYS SAM MIHARA MARKETING DIRECTOR FOR MCDONNELL DOUGLAS CORPORATION'S SPACE TRANSPORTATION DIVISION AS FOR THE PRELAUNCH PROBLEMS EVERYBODY HAS THOSE HE SAYS IN FIVE TO TEN YEARS NO ONE WILL REMEMBER THEM MAJOR ALUMINUM PRODUCING NATIONS REACHED AN ACCORD TO SLASH GLOBAL PRODUCTION BY AS MUCH AS TWO MILLION METRIC TONS PUTTING THE BELEAGUERED INDUSTRY ON TRACK FOR RECOVERY IF PRODUCERS FOLLOW THROUGH WITH THE VOLUNTARY CUTS THE U. S. RUSSIA CANADA AUSTRALIA NORWAY AND THE EUROPEAN UNION OVER THE WEEKEND SIGNED A MEMORANDUM OF UNDERSTANDING THE EUROPEAN COMMISSION IN BRUSSELS SAID IN A STATEMENT WHILE FULL DETAILS WEREN'T DISCLOSED THE ACCORD INCLUDES A COMMITMENT BY MOSCOW TO CURB THE REPUBLIC'S ANNUAL OUTPUT OF THE METAL BY FIVE HUNDRED THOUSAND TONS THE U. S. AND THE E. U. MEANWHILE AGREED TO REFRAIN FROM TAKING TRADE ACTIONS AGAINST RUSSIAN PRODUCERS AND SEVERAL NATIONS INCLUDING AUSTRALIA MEMBERS OF THE E. U. AND U. S. PROMISED TO AID THE RUSSIAN INDUSTRY'S RESTRUCTURING QUOTE THIS IS A CONFIDENCE BUILDING MEASURE THAT AIMS TO GALVANIZE EACH AND EVERY ONE INTO MOVING AHEAD WITH CUTS AT THEIR OWN LEVELS AND TIMES QUOTE SAID ONE OFFICIAL CLOSE TO THE TALKS BUT SOME OBSERVERS EXPRESSED SKEPTICISM OVER THE PACT BECAUSE OF ITS VOLUNTARY NATURE WHO IS GOING TO BE THE GUY THAT WILL ACCEPT THE BURDEN WHO WILL SAY IT'S NOT IN OUR SELF INTEREST AS A SINGLE COMPANY BUT AS AN INDUSTRY I WILL TAKE THE STEP AND TAKE MONEY OUT OF MY SHAREHOLDERS' POCKETS FOR THE GREATER GOOD SAID PETER MERNER AN ANALYST WHO HEADS MERNER AND ASSOCIATES IN NEW YORK I THINK WE'RE GOING TO BE WAITING A LONG TIME BEFORE ANY CAPITALIST WILL DO IT MOREOVER DOUBTS ABOUND ABOUT WHETHER RUSSIA'S GOVERNMENT CAN FORCE PRODUCTION CUTS ONTO UNWILLING SMELTERS MANY OF WHICH OPERATE INDEPENDENTLY THOUSANDS OF MILES AWAY FROM THE CAPITAL WITH SPIRALING INFLATION RUSSIAN PRODUCERS ARE BELIEVED TO BE IN DESPERATE NEED OF HARD CURRENCY WHICH CAN ONLY BE EARNED THROUGH EXPORTS THE GLOBAL OVERSUPPLY RESULTED IN PART FROM THE COLLAPSE OF THE FORMER SOVIET UNION WHOSE MILITARY INDUSTRIAL COMPLEX HAD CONSUMED ROUGHLY HALF OF THE NATION'S RAW ALUMINUM ON TOP OF THAT SEVERAL LONG PLANNED SMELTING PROJECTS IN THE WEST CAME ON STREAM WHILE RUSSIA MADE ITS UNEXPECTED ENTRY ONTO THE WORLD MARKET AS A RESULT THE PRICE OF ALUMINUM FELL LAST FALL TO A RECORD LOW WHEN ADJUSTED FOR INFLATION TRIGGERING LOSSES FOR MOST OF THE WORLD'S ALUMINUM PRODUCERS PRICES HAVE RISEN SOMEWHAT SINCE THEN THOMAS M. VAN LEEUWEN AN ANALYST WITH C. S. FIRST BOSTON IN NEW YORK SAID THE RUSSIAN GOVERNMENT HAS SEVERAL WAYS TO FORCE PRODUCTION CUTS INCLUDING HALTING THE IMPORTATION OF ALUMINA THE VITAL RAW MATERIAL IN ALUMINUM PRODUCTION IF PRODUCERS FOLLOW THROUGH WITH THE CUTS ANALYSTS EXPECT A RELATIVELY FAST RECOVERY IF THE PRODUCTION CUTBACKS TOTAL ONE POINT FIVE MILLION METRIC TONS OR MORE IT IS MORE THAN ENOUGH TO SOLVE THE PROBLEM SAID STEWART SPECTOR AN ANALYST WHO WRITES THE SPECTOR REPORT IT WOULD BE NECESSARY TO BEGIN RESTARTING IDLED CAPACITY WITHIN TWELVE TO SIXTEEN MONTHS MR. SPECTOR SAID HE BELIEVES WESTERN PRODUCERS WILL MAKE THE EXPECTED CUTS THEY NOW HAVE THE EXCUSE TO DO WHAT THEY SHOULD HAVE DONE IN THE FIRST PLACE HE SAID ADDED MR. VAN LEEUWEN QUOTE IT DOESN'T TAKE A ROCKET SCIENTIST TO SEE THAT EVERYBODY NEEDS TO STEP UP TO THE PLATE QUOTE THE ALUMINUM ASSOCIATION WHICH REPRESENTS U. S. ALUMINUM COMPANIES DECLINED COMMENT SAYING IT WAS WAITING ON A STATEMENT BY THE U. S. GOVERNMENT ABOUT THE MEMORANDUM UNDER THE MEMORANDUM RUSSIA WOULD IMMEDIATELY CURB ITS ANNUAL OUTPUT BY THREE HUNDRED THOUSAND TONS ITS PRODUCTION REACHED ABOUT TWO POINT SEVEN MILLION TONS LAST YEAR ANOTHER TWO HUNDRED THOUSAND TONS WOULD BE CUT IF WESTERN PRODUCERS MADE SIMILAR REDUCTIONS SAID AN OFFICIAL CLOSE TO THE TALKS THE TOTAL WOULD REACH ONE POINT FIVE MILLION TO TWO MILLION METRIC TONS THE PACT ALSO CALLS FOR U. S. PRODUCERS TO REFRAIN FROM FILING TRADE CASES AGAINST RUSSIAN PRODUCERS AS THEY HAVE THREATENED TO DO THE EUROPEAN UNION MEANWHILE WOULDN'T RENEW A QUOTA SET TO EXPIRE IN FEBRUARY AMOUNTING TO ONE HUNDRED EIGHTY THOUSAND TONS A YEAR ON ALUMINUM IMPORTS FROM THE COMMONWEALTH OF INDEPENDENT STATES BUT A GROUP OF SMALLER U. S. PRODUCERS MIGHT STILL FILE AN ANTIDUMPING COMPLAINT WHICH THEY HAVE ALREADY PREPARED SAID ONE PERSON FAMILIAR WITH THE SITUATION THEY DON'T FEEL THEY'RE PRECLUDED FROM IT BY THE MEMORANDUM THE PERSON SAID THE SMALLER PRODUCERS WILL WAIT UNTIL AFTER THE GOVERNMENTS INVOLVED IN THE PACT MEET IN CANADA FEBRUARY TWENTY EIGHTH TO ASSESS PROGRESS IN THE VOLUNTARY CUTBACKS BEFORE DECIDING WHETHER TO FILE THEIR COMPLAINT IN ANOTHER SIGN OF JAPAN'S CONTINUING ELECTRONICS SLUMP TOP JAPANESE TRADE NEGOTIATORS HAVE BROACHED THE IDEA OF JOINING SEMATECH THE U. S. TECHNOLOGY CONSORTIUM FORMED IN THE NINETEEN EIGHTIES TO COUNTER JAPANESE DOMINANCE IN COMPUTER CHIPS JAPANESE PARTICIPATION WOULD MARK A RADICAL DEPARTURE FOR THE ONCE STRIDENTLY ALL AMERICAN ORGANIZATION WHICH RECEIVES HALF ITS TWO HUNDRED MILLION DOLLAR ANNUAL BUDGET FROM THE FEDERAL GOVERNMENT AND HAS BEEN CITED BY THE CLINTON ADMINISTRATION AS A MODEL OF GOVERNMENT INDUSTRY COOPERATION THE OVERTURE FROM JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY CAME DURING BILATERAL TRADE TALKS IN TOKYO THIS MONTH IN WHICH NEGOTIATORS ARE TRYING TO SETTLE DIFFERENCES OVER U. S. ACCESS TO JAPAN'S HUGE SEMICONDUCTOR MARKET THOUGH A M. I. T. I. SPOKESMAN SAID SEMATECH MEMBERSHIP WAS MERELY AN IDEA AND NOT THE SUBJECT OF A FORMAL PETITION JAPANESE NEGOTIATORS SUGGESTED THAT ALLOWING JAPANESE COMPANIES TO JOIN SEMATECH MIGHT HELP TO FURTHER OPEN JAPAN'S CHIP MARKET TO U. S. COMPANIES BY GIVING U. S. CHIP MAKERS A BETTER IDEA OF WHAT JAPANESE CUSTOMERS WANT SO FAR U. S. NEGOTIATORS HAVEN'T POUNCED ON THE IDEA PUSHING INSTEAD FOR STRAIGHT MARKET OPENING COMPROMISES BY THE JAPANESE QUOTE THE IDEA WAS RAISED QUOTE SAID A CLINTON ADMINISTRATION OFFICIAL WE HAVEN'T DONE ANYTHING WITH IT FORMED SEVEN YEARS AGO DURING JAPAN'S ECONOMIC HEYDAY THE CONSORTIUM REPRESENTED A LAST DITCH EFFORT TO RESCUE THE COMPANIES THAT MAKE CHIP MANUFACTURING EQUIPMENT FROM A BRUTAL PUMMELING BY JAPANESE CONCERNS FOR YEARS SEMATECH OFFICIALS SPOKE OF THE JAPANESE COMPETITION IN AGGRESSIVE EVEN BELLIGERENT TONES AT TIMES REFUSING EVEN TO LET JAPANESE TELEVISION REPORTERS INTO SEMATECH'S AUSTIN TEXAS HEADQUARTERS THAT RHETORIC THOUGH HAS SOFTENED RECENTLY IN PART BECAUSE THE U. S. CHIP INDUSTRY IS WINNING THE LARGEST U. S. SUPPLIERS OF CHIP MAKING EQUIPMENT ARE CONTINUING TO GAIN MARKET SHARE AND U. S. CHIP MAKERS LED BY GIANT INTEL CORPORATION HAVE COME TO DOMINATE THE WORLD MARKET AS JAPAN'S CORPORATE TITANS HAVE STUMBLED STILL EVEN THE NOTION OF JAPANESE COMPANIES HAVING ACCESS TO TECHNOLOGY DEVELOPED IN PART WITH U. S. TAXPAYER FUNDS COULD PROVE TROUBLESOME FOR SEMATECH AND ITS BACKERS IN THE ADMINISTRATION INDEED SOME ANALYSTS SAY SUCH A MOVE COULD JEOPARDIZE SEMATECH'S FEDERAL FUNDING NOT TO MENTION RILE MANY OF ITS MEMBER COMPANIES THAT NOW HAVE THEIR JAPANESE COMPETITION ON THE RUN AT INTEL FOR INSTANCE A SPOKESMAN SAID HE WAS DUBIOUS ABOUT THE IDEA MY GUT WOULD TELL ME THAT FULL MEMBERSHIP WOULD BE SOMETHING WE WOULD STUDY CLOSELY BUT PROBABLY NOT IN A POSITIVE LIGHT HE SAID G. DAN HUTCHESON PRESIDENT OF V. L. S. I. RESEARCH INCORPORATED A SAN JOSE CALIFORNIA TECHNOLOGY RESEARCH CONCERN SAID FULL JAPANESE MEMBERSHIP IN SEMATECH WOULD BE BLATANTLY VIOLATING A LOT OF THE PRINCIPLES ON WHICH SEMATECH WAS FOUNDED I THINK THERE WOULD BE A LOT OF PROBLEMS CONSORTIUM OFFICIALS IN PUBLIC COMMENTS ARE COY ABOUT THEIR ROLE IN THE NEGOTIATIONS MILLER BONNER A SEMATECH SPOKESMAN SAID IT WOULD BE UP TO THE CONSORTIUM'S BOARD AND THE U. S. GOVERNMENT TO DECIDE WHETHER JAPANESE COMPANIES ARE ALLOWED IN IN PRIVATE THOUGH SEMATECH OFFICIALS HAVE SOUGHT TO ADVANCE THE IDEA IN A SPEECH LAST MONTH IN TOKYO TO A JAPANESE SEMICONDUCTOR INDUSTRY GROUP SEMATECH PRESIDENT WILLIAM J. SPENCER BROUGHT UP THE PROSPECT OF JAPANESE COLLABORATION WITH THE CONSORTIUM THOUGH IN A LIMITED FASHION MR. SPENCER WHO IS ON THE CONSORTIUM'S BOARD SAID HE WOULD BE OPEN TO JAPANESE PARTICIPATION IN SEMATECH'S ENVIRONMENTAL AND SILICON DEVELOPMENT PROGRAMS IF JAPAN'S CANON INCORPORATED LIVES UP TO ITS SIDE OF THE DEAL IN A TECHNOLOGY SWAPPING PACT WITH SILICON VALLEY GROUP INCORPORATED A U. S. CHIP EQUIPMENT SUPPLIER CAN WE RECONCILE INTERNATIONAL COLLABORATION IN THIS AREA WITH SEMATECH'S REQUIREMENT TO SERVE NATIONAL INTERESTS WE THINK IT MIGHT BE POSSIBLE QUOTE MR. SPENCER TOLD THE GROUP AS SOMEONE NOT FORTUNATE ENOUGH TO LIVE AND WORK IN NEW YORK CITY BUT FORTUNATE ENOUGH TO BE ABLE TO PARTAKE OF MUCH OF WHAT IT HAS TO OFFER I WAS AMAZED TO READ SUSAN HAUSER'S LEISURE AND ARTS ARTICLE QUOTE BORED ON FIFTH AWAY FROM HOME TOGETHER QUOTE DECEMBER TWENTY EIGHTH ABOUT SOMEONE VISITING NEW YORK AND FINDING NOTHING FOR HER AND HER CHILDREN TO DO INSTEAD OF STAYING COOPED UP IN THE PLAZA HOTEL ALL SHE HAD TO DO WAS WALK ACROSS ONE STREET TO F. A. O. SCHWARTZ OR ACROSS ANOTHER TO CENTRAL PARK OR OUT THE DOOR AND AROUND THE CORNER TO RUMPLEMAYER'S MUCH MORE FUN AND LESS EXPENSIVE THAN ROOM SERVICE OR OUT THE DOOR AND DOWN THE STREET TO THE TREE AT ROCKEFELLER CENTER NOT TO MENTION THE CHRISTMAS SHOW THE MUSEUMS THE DISPLAY OF TOY SOLDIERS AND SUBMARINES AT THE FORBES GALLERY ET CETERA ET CETERA WHAT A SHAME SHE SPENT ALL THE MONEY SHE DUTIFULLY ACCOUNTS FOR IN HER ARTICLE AND RECEIVED SUCH A POOR RETURN SHE MUST COME BACK AND DO HERSELF AND HER CHILDREN A FAVOR AND VENTURE OUT INTO THE MOST WONDERFUL CITY IN THE WORLD TOGETHER THEIR FANTASIES WILL BE FULFILLED AND THEY WILL FIND REALITY IN NEW YORK EXCEEDS EXPECTATIONS MS. HAUSER'S STORY ON HER FAMILY'S STAY AT THE PLAZA BRINGS TO MIND OUR OWN LONG WEEKEND IN NEW YORK THIS TIME LAST YEAR WHILE NOT THE PLAZA THE MIDTOWN MARRIOTT PROVED AN EXCELLENT BASE FOR THREE DAYS OF TYPICAL NEW YORK CITY TOURISM JOGGING IN CENTRAL PARK BROADWAY THEATER F. A. O. SCHWARTZ THE METROPOLITAN MUSEUM BLOOMINGDALES ET CETERA WHEN DAN THEN ELEVEN NOW TWELVE RECENTLY RE VIEWED HOME ALONE TWO HE BEGGED US TO TAKE HIM BACK TO NEW YORK THOUGH I DON'T BELIEVE HIS IMAGE OF THE CITY'S WONDER RELATES TO MS. HAUSER'S CONCEPT OF HANGING OUT IN THE CONFINES OF A HOTEL CLOSED END FUNDS SELL A LIMITED NUMBER OF SHARES AND INVEST THE PROCEEDS IN SECURITIES UNLIKE OPEN END FUNDS CLOSED ENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C. CHICAGO N. N. Y. S. E. O. NASDAQ T. TORONTO Z. DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY N. A. V. WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE N. A. V. OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES FIFTY TWO WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST TWELVE MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME. A THE N. A. V. AND MARKET PRICE ARE EX DIVIDEND B. THE N. A. V. IS FULLY DILUTED C. N. A. V. MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D. N. A. V. MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E. N. A. V. ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V. N. A. V. IS CONVERTED AT THE COMMERCIAL RAND RATE. Y. N. A. V. AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N. SLASH A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE HIS WIFE THOUGHT HE WAS CRAZY RISING BEFORE DAWN ON HIS DAY OFF JUST TO SEE SOME FRENCH PAINTINGS KAZUHIRO ARAI THOUGH WAS A HAPPY MAN HE WAS FIRST IN LINE FOR THE OPENING OF AN EXHIBIT OF MASTERPIECES ASSEMBLED BY AN IRASCIBLE ICONOCLASTIC COLLECTOR FROM PHILADELPHIA NAMED ALBERT C. BARNES QUOTE MY WIFE DOESN'T UNDERSTAND THESE PEOPLE UNDERSTAND SAID MR. ARAI A FORTY THREE YEAR OLD SELF DESCRIBED SALARYMAN AS HE POINTED AT THE FIVE HUNDRED ODD PEOPLE SNAKING AROUND TOKYO'S NATIONAL MUSEUM OF WESTERN ART THEY WERE WAITING FOR THE DOORS TO OPEN ON THE ONLY SHOWING IN ASIA OF GREAT FRENCH PAINTINGS FROM THE BARNES FOUNDATION WHERE ELSE BUT TOKYO BARNES FOUNDATION PRESIDENT RICHARD H. GLANTON SAID A FEW DAYS EARLIER AS HE ARRIVED FOR THE SWIRL OF FESTIVITIES INAUGURATING THE EXHIBITION OF IMPRESSIONIST POSTIMPRESSIONIST AND MODERN FRENCH ART WHICH RUNS THROUGH APRIL THIRD WHERE ELSE BUT TOKYO INDEED WOULD THE LARGEST NEWSPAPER THE YOMIURI SHIMBUN WITH A CIRCULATION OF FOURTEEN MILLION CONTRIBUTE FOUR POINT FIVE MILLION DOLLARS TO THE FOUNDATION'S GALLERY RENOVATION PLANS IN EXCHANGE FOR HOSTING SUCH A SHOW IT TOOK A PROTRACTED COURT BATTLE TO GET THIS FAR FOR BARNES A CHEMIST WHO MADE MILLIONS BOTTLING AN EYE MEDICINE DEVELOPED ALONG WITH HIS PASSION FOR COLLECTING AN ORNERY DISDAIN FOR THE ESTABLISHED ART WORLD BEFORE HE DIED IN NINETEEN FIFTY ONE HE STIPULATED THAT HIS MASTERWORKS WOULD NEVER LEAVE THE EDUCATIONAL FOUNDATION HE SET UP NEAR PHILADELPHIA BUT THE FOUNDATION NEARLY BROKE AND SADDLED WITH A BUILDING BADLY IN NEED OF REFURBISHING APPEALED TO A PENNSYLVANIA COURT TO ALLOW THIS ONE TIME ONLY WORLD TOUR TOKYO IS THE THIRD AND MOST PROFITABLE OF THE APPROVED STOPS ALONG WITH THE NATIONAL GALLERY OF ART IN WASHINGTON AND THE MUSEE D'ORSAY IN PARIS IN MANY WAYS TOKYO MAY WIND UP BEING THE MOST INTERESTING CAPTURING A CURIOUS AND DEEP INFATUATION IN JAPAN WITH THE PAINTINGS OF RENOIR CEZANNE AND MATISSE NOT SURPRISINGLY THE ARRIVAL OF THE EIGHTY BARNES PAINTINGS HAS BEEN DRENCHED IN A MARKETING CAMPAIGN DESIGNED TO TRANSFORM BARNES'S MOST PRIVATE COLLECTION INTO A MUST SEE BLOCKBUSTER SHOW THERE ARE POSTERS IN SUBWAY TRAINS TELEVISION COMMERCIALS AND THE INEVITABLE COFFEE MUGS T. SHIRTS SCARVES AND CALENDARS YET THE SELLING OF THE BARNES SHOW HAS NOT BEEN DIFFICULT NEVER MIND THAT MOST JAPANESE HAVE NEVER HEARD OF THE LATE COLLECTOR JUST ABOUT ANYONE WILL TELL YOU THAT RENOIR IS THE MOST POPULAR FOREIGN ARTIST IN JAPAN AND IMPRESSIONISM THE FAVORITE STYLE WE WOULD DO ANYTHING TO SEE RENOIR SAID NUBUKO IMAMURA WHO ALONG WITH HER SISTER WAS ONE OF THE EIGHT THOUSAND WHO ON OPENING DAY JANUARY TWENTY SECOND STREAMED THROUGH THE MUSEUM'S FOUR GALLERIES DEVOTED TO THE LUSH VIBRANT CANVASES FROM THE BARNES THE TWO SISTERS HAD TAKEN A DAY OFF WORK BOARDED A BULLET TRAIN IN THEIR HOMETOWN OF HIROSHIMA AND TRAVELED FOR FIVE HOURS JUST TO SEE THE SHOW'S SIXTEEN RENOIRS I'VE NEVER SEEN SO MANY BEAUTIFUL THINGS IN ONE ROOM ADDED HER SISTER KYOKO WHY DOES RENOIR HOLD SUCH APPEAL IN JAPAN QUOTE HE'S SO WARM AND SOFT QUOTE ONE SISTER SAID THERE IS NO JAPANESE PAINTER WHO CAN PAINT WOMEN SO SOFTLY SO BEAUTIFULLY SAID THE OTHER JAPAN'S LOVE AFFAIR WITH IMPRESSIONISM BUT TOTAL IGNORANCE OF BARNES IS ONE OF THE MOST FASCINATING ASPECTS OF THE WHOLE SHOW SAYS SHUICHI KATO THE DOYEN OF JAPANESE ART HISTORIANS TO BE SURE THE PAINTINGS BARNES COLLECTED RESONATE DIFFERENTLY IN TOKYO THAN IN PARIS WHERE THE EXHIBITION WAS IN ESSENCE ON HOME TURF AND DREW ONE POINT FIVE MILLION VISITORS THE LARGEST AUDIENCE IN FRENCH HISTORY BUT THE BARNES SHOW RAISES DIFFERENT QUESTIONS IN JAPAN LIKE WHY IS IMPRESSIONISM AND THEN POSTIMPRESSIONISM SO POPULAR MR. KATO ASKS THE INFATUATION HAS SEVERAL ROOTS AFTER THE MEIJI RESTORATION WHEN JAPANESE BEGAN VENTURING INTO EUROPE IN THE ONE THOUSAND EIGHT HUNDRED SEVENTIES AND EIGHTIES IMPRESSIONISM WAS JUST BEGINNING TO APPEAR IN PARIS AS A CHALLENGE TO THE REALISTIC STYLE OF THE ART ACADEMIES IMPRESSIONISM MARKS THE FIRST TIME JAPANESE PAINTERS TRIED ON A EUROPEAN STYLE AND EUROPEAN PAINTERS WERE INFLUENCED BY JAPANESE STYLE SAYS MR. KATO JAPANESE PAINTERS FOLLOWING THE PATTERN OF THE ENGINEERS AND BUREAUCRATS WHO BROUGHT BACK WHAT THEY LEARNED IN EUROPE INTRODUCED THEIR COLLEAGUES TO MONET DEGAS AND RENOIR THEY ALSO BEGAN PAINTING IMPRESSIONIST VERSIONS OF GINZA STREET SCENES AND PORTRAITS OF KIMONO CLAD WOMEN BY THE EARLY DECADES OF THE CENTURY EUROPEAN IMPRESSIONISTS HAD CAPTURED POPULAR TASTE AS WELL AND THE INFATUATION HAS NEVER COOLED A LARGE PART OF IT MR. KATO SAYS WAS THE SUBJECT MATTER PRETTY LANDSCAPES AND DOMESTIC SCENES MADE MORE SENSE TO THE JAPANESE THAN DID WESTERN HISTORICAL OR RELIGIOUS PAINTINGS THE CACHET OF IMPRESSIONISM AND POSTIMPRESSIONISM TOOK ON A DECIDEDLY COMMERCIAL CAST DURING THE HEADY FLUSH DAYS OF THE LATE NINETEEN EIGHTIES THE APPETITE OF JAPANESE INVESTORS FOR RENOIRS MONETS CEZANNES AND VAN GOGHS SENT THE WORLD'S ART PRICES SOARING RECORDS WERE REGULARLY BROKEN IN TOKYO LONDON AND NEW YORK AT ITS HEIGHT WHEN LITERALLY HUNDREDS OF RENOIRS WERE SNAPPED UP BY JAPANESE INVESTORS SOME FORTY FIVE PERCENT OF ALL IMPRESSIONIST PAINTINGS UP FOR SALE WENT TO JAPANESE BUYERS THE BOOM TIMES ARE OVER AND THE ART MARKET MAY HAVE COOLED HERE BUT THE CURRENT EXHIBITION'S ORGANIZERS ARE HOPING THAT PEOPLE WILL STILL JUMP AT THIS UNIQUE CHANCE TO SEE SUCH KEY WORKS AS THE MODELS BY SEURAT AND THE JOY OF LIFE BY MATISSE YOMIURI SHIMBUN OFFICIALS TALK OF ATTRACTING SIX HUNDRED THOUSAND VISITORS WILLING TO PAY ONE THOUSAND FIVE HUNDRED YEN TWELVE DOLLARS AND FIFTY CENTS TO SEE THE SHOW ON THE SHOW'S OPENING DAY KENSUKE TANABE AN ACCOMPLISHED CONTEMPORARY PAINTER FROM YOKOHAMA FOUND HIMSELF SURROUNDED BY WORKS OF MATISSE HE HAD LONG AGO COPIED FROM BOOKS THE IRONY CONTINUES HE NOTED QUOTE THANKS TO THE BARNES COLLECTION WE CAN SEE ALL THESE GREAT PAINTINGS THAT JAPANESE INVESTORS COULDN'T GET THEIR HANDS ON QUOTE HE SAID MS. SCOTT IS A WRITER IN TOKYO UNFUNDED FEDERAL MANDATES ARE PLACING SEVERE PRESSURE ON TAXPAYERS NATIONWIDE CRIPPLING STATE BUDGETS FROM MAINE TO CALIFORNIA THESE MANDATES ARE FEDERAL PROGRAMS ENACTED BY CONGRESS BUT WITH A CATCH THEY MUST BE FINANCED WITH STATE AND LOCAL RESOURCES THROUGH THIS SLEIGHT OF HAND CONGRESS COMPELS STATES AND LOCALITIES TO FUND PROGRAMS WASHINGTON CANNOT BECAUSE OF THE PERSISTENT BUDGET DEFICIT THIS SUMMER OHIO RELEASED A STUDY ANALYZING THE EFFECTS OF UNFUNDED MANDATES WE DETERMINED THAT FEDERAL MANDATES WILL COST OHIO THREE HUNDRED FIFTY SIX MILLION DOLLARS IN NINETEEN NINETY FOUR AND MORE THAN ONE POINT SEVEN FOUR BILLION DOLLARS IN NINETEEN NINETY TWO TO NINETY FIVE FEDERAL MANDATES INTERFERE WITH A FUNDAMENTAL TASK OF GOVERNMENT SETTING PRIORITIES PERHAPS THE MOST GLARING EXAMPLE IS THE FORCED TRADE OFF BETWEEN MEDICAID AND EDUCATION IN THE PAST FIVE YEARS EDUCATION DECLINED AS A SHARE OF STATE SPENDING AT A TIME WHEN EDUCATIONAL IMPROVEMENT SHOULD BE ONE OF OUR HIGHEST PRIORITIES MANY STATES CANNOT SPEND A GREATER SHARE OF TAX DOLLARS ON EDUCATION BECAUSE NEW MEDICAID MANDATES CONSUME MORE AND MORE STATE RESOURCES INCREASING TO TWO HUNDRED SIXTY THREE MILLION DOLLARS FOR OHIO IN NINETEEN NINETY FIVE FROM ONE HUNDRED EIGHTY FIVE MILLION DOLLARS IN NINETEEN NINETY TWO WHILE MOST MANDATES MAY REFLECT WELL INTENTIONED POLICY GOALS MANY IMPOSE EXCESSIVE COSTS WITHOUT ANY DISCERNIBLE BENEFIT FOR EXAMPLE RECENT FEDERAL HIGHWAY LAW REQUIRES STATES TO USE A SCRAP TIRE ADDITIVE IN HIGHWAY PAVEMENT BY NINETEEN NINETY SEVEN THIS MANDATE WILL COST OHIO MORE THAT FIFTY MILLION DOLLARS A YEAR BECAUSE EARLY TESTS SHOW THAT RUBBERIZED ASPHALT IS TWO TO THREE TIMES MORE EXPENSIVE THAN CONVENTIONAL PAVEMENT THE NATIONAL COST IS ROUGHLY ONE BILLION DOLLARS TO PUT THIS FIFTY MILLION DOLLAR FIGURE IN PERSPECTIVE FOR THE SAME COST OHIO COULD REPAVE SIX HUNDRED SIXTY SEVEN MILES OF RURAL HIGHWAYS OR REHABILITATE ONE HUNDRED THIRTY SEVEN BRIDGES INCREDIBLY THIS MANDATE WAS ENACTED WITHOUT ANY ASSESSMENT OF ITS IMPACT AND EXPERTS HAVE REAL QUESTIONS ABOUT THE DURABILITY AND ENVIRONMENTAL EFFECTS OF RUBBERIZED ASPHALT UNFUNDED MANDATES ALSO PRE EMPT IMPORTANT STATE INITIATIVES IN OHIO FOR EXAMPLE WE DEVELOPED A COMPREHENSIVE SOLID WASTE MANAGEMENT PLAN YET WE ARE REQUIRED TO CHANGE MOST OF OUR LANDFILL RULES TO CONFORM TO FEDERAL STANDARDS THAT IN SOME RESPECTS ARE WEAKER THAN OUR OWN OHIO REGULATORS ARE ALSO INCREASINGLY BEING SWAMPED BY FEDERAL PAPERWORK REQUIREMENTS INHIBITING CLEANUP OF LANDFILLS THAT POSE ENVIRONMENTAL RISKS CITIES AND LOCALITIES IN PARTICULAR ARE HEAVILY BURDENED BY ENVIRONMENTAL MANDATES LAST YEAR A COLUMBUS OHIO ANALYSIS FOUND THAT ENVIRONMENTAL MANDATES WILL COST NINE OHIO CITIES TWO POINT EIGHT BILLION DOLLARS OVER TEN YEARS THE SAFE DRINKING WATER ACT RESPONSIBLE FOR MANY OF THESE COSTS REQUIRES THE ENVIRONMENTAL PROTECTION AGENCY TO IDENTIFY TWENTY FIVE NEW SUBSTANCES EVERY THREE YEARS THAT LOCAL SYSTEMS MUST TEST FOR IN THEIR WATER SUPPLY BECAUSE E. P. A. ARBITRARILY MUST IDENTIFY A SET NUMBER OF SUBSTANCES WITHOUT ANY ASSESSMENT OF LOCAL CONDITIONS OR HEALTH RISKS CITIES NATIONWIDE MUST BEAR THE COSTS OF TESTING THEIR DRINKING WATER FOR PESTICIDES USED ONLY IN HAWAII TO PROTECT PINEAPPLE CROPS GOVERNORS MAYORS COUNTY OFFICIALS AND STATE LEGISLATORS ARE WORKING TOGETHER TO FIGHT MANDATES AND TO POOL THEIR CLOUT IN WASHINGTON BUT CONGRESS CONTINUES TO PASS AND THE PRESIDENT CONTINUES TO SIGN LEGISLATION IMPOSING UNFUNDED MANDATES THE PAST SESSION OF CONGRESS ENACTED NO LESS THAN THIRTEEN BILLS IMPOSING NEW COSTS ON STATES INCLUDING SEVERAL THE PRESIDENT CLAIMED AS MAJOR ACCOMPLISHMENTS DURING HIS STATE OF THE UNION ADDRESS CONGRESS AND THE PRESIDENT MUST END THIS IRRESPONSIBLE PRACTICE THE NATION CAN NO LONGER AFFORD THE LOCAL TAX BURDEN AND SERVICE REDUCTIONS NECESSARY TO FUND PROGRAMS DICTATED BY WASHINGTON MR. VOINOVICH A REPUBLICAN IS GOVERNOR OF OHIO MACHINE TOOL ORDERS JUMPED THIRTY SEVEN PERCENT TO THREE HUNDRED NINETEEN POINT ONE MILLION DOLLARS IN DECEMBER FROM NOVEMBER'S TWO HUNDRED THIRTY TWO POINT THREE MILLION DOLLARS AS THE INDUSTRY'S RECOVERY BROADENED BEYOND ORDERS FROM AUTOMOTIVE MAKERS DECEMBER'S HEALTHY ORDER INCREASE CAPPED A STRONG YEAR FOR THE INDUSTRY ORDERS CLIMBED THIRTY TWO PERCENT LAST YEAR TO THREE POINT TWO EIGHT BILLION DOLLARS FROM TWO POINT FOUR EIGHT BILLION DOLLARS IN NINETEEN NINETY TWO ACCORDING TO THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY AN INDUSTRY TRADE GROUP DOMESTIC ORDERS LED THE WAY SOARING NEARLY FORTY PERCENT TO TWO POINT NINE NINE BILLION DOLLARS FROM TWO POINT ONE FOUR BILLION DOLLARS IN DECEMBER DOMESTIC ORDERS CLIMBED THIRTY PERCENT TO TWO HUNDRED EIGHTY TWO POINT FIVE MILLION DOLLARS FROM TWO HUNDRED EIGHTEEN POINT ONE MILLION DOLLARS IN NOVEMBER AND SIXTY FOUR PERCENT FROM ONE HUNDRED SEVENTY ONE POINT NINE MILLION DOLLARS IN DECEMBER NINETEEN NINETY TWO THE SURGE IN ORDERS FOR THE YEAR WAS LARGELY FUELED BY AUTO MAKERS WHICH WERE BUYING MACHINE TOOLS IN THEIR BIDS TO BOOST PRODUCTIVITY AND TURN OUT NEW PRODUCTS FASTER BUT AS NINETEEN NINETY THREE PROGRESSED ORDERS CLIMBED FROM OTHER SECTORS RANGING FROM APPLIANCE MAKERS TO SMALL JOB SHOPS QUOTE WE SAW A GOOD STEP UP IN DEMAND AND WE DON'T THINK IT'S OVER YET QUOTE SAID ELI S. LUSTGARTEN AN ANALYST WITH PAINEWEBBER INCORPORATED MR. LUSTGARTEN PROJECTS AN EIGHT PERCENT TO TWELVE PERCENT INCREASE IN ORDERS THIS YEAR MANUFACTURERS WILL CONTINUE TO BUY NEW MACHINE TOOLS WHICH CUT AND FORM METAL PARTS FOR OTHER MACHINES AS PART OF AN EMPHASIS ON PRODUCTIVITY IMPROVING THE PROCESS SAID MR. LUSTGARTEN HE ALSO SEES A POTENTIAL PICKUP IN ORDERS FOR EXPORT WHICH HE SAID STABILIZED LATE LAST YEAR IN DECEMBER ORDERS FOR EXPORT SHOT UP ONE HUNDRED FIFTY SEVEN PERCENT TO THIRTY SIX POINT SIX MILLION DOLLARS FROM FOURTEEN POINT THREE MILLION DOLLARS AND ROSE SEVEN PERCENT FROM THIRTY FOUR POINT THREE MILLION DOLLARS IN DECEMBER NINETEEN NINETY TWO BUT FOR THE YEAR THEY FELL FIFTEEN PERCENT TO TWO HUNDRED NINETY POINT NINE MILLION DOLLARS FROM NINETEEN NINETY TWO'S THREE HUNDRED FORTY ONE POINT SEVEN MILLION DOLLARS AN ECONOMIC RECOVERY OVERSEAS COULD ALSO SPUR HIGHER DOMESTIC MACHINE TOOL ORDERS AS U. S. MANUFACTURERS GEAR UP TO MEET DEMAND FOR EXPORTS SAID WILLIAM G. COPELAND OF COPELAND ECONOMICS IN STAMFORD CONNECTICUT STILL DOMESTIC AUTO RELATED ORDERS SHOULD CONTINUE AS A MAIN PROPELLANT FOR MACHINE TOOL ORDER GROWTH IN NINETEEN NINETY FOUR SAID MR. COPELAND WHO LAST YEAR PREDICTED THE THIRTY TWO PERCENT RISE IN ORDERS AND NOW PROJECTS A TWELVE PERCENT TO FIFTEEN PERCENT INCREASE THIS YEAR AS MUCH MONEY AS DETROIT HAS SPENT IN THE LAST TWELVE MONTHS I THINK THERE'S GOING TO BE CONSIDERABLY MORE HE SAID GENERAL MOTORS CORPORATION CHRYSLER CORPORATION AND DAIMLER BENZ A. G. WHICH IS BUILDING A PLANT IN ALABAMA SHOULD LEAD THE WAY IN ORDERING MACHINE TOOLS G. M. IS STILL PLAYING COST AND PRODUCT DESIGN CATCH UP HE SAID MACHINE TOOL ORDERS ARE CONSIDERED ECONOMIC HARBINGERS BECAUSE THE PRODUCTS ARE SHIPPED NINE TO EIGHTEEN MONTHS AFTER THEY ARE ORDERED INVESTORS WON'T HAVE ANY SAY IN SETTING THE RESIDUAL VALUE OF THEIR PRUDENTIAL SECURITIES INCORPORATED LIMITED PARTNERSHIPS WHEN TRYING TO TAP INTO A REPARATIONS FUND SET UP BY THE BROKERAGE FIRM THAT'S BAD NEWS FOR AS MANY AS THREE HUNDRED TWENTY FIVE THOUSAND INVESTORS SEEKING REDRESS FROM PRUDENTIAL THROUGH THE FUND SET UP AS PART OF AN OCTOBER SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AND STATE REGULATORS PRUDENTIAL HAS BEEN ACCUSED OF MISLEADING INVESTORS ON THE RISKS AND RETURNS OF EIGHT POINT ONE FIVE BILLION DOLLARS OF PARTNERSHIPS IN THE NINETEEN EIGHTIES RESIDUAL VALUE PLAYS A MAJOR ROLE IN DETERMINING THE VALUE OF PARTNERSHIPS AND WHAT DAMAGES INVESTORS OUGHT TO RECEIVE INVESTORS HAD EXPECTED TO BE ABLE TO PRESENT EVIDENCE ON DAMAGES THROUGH RESIDUALS IN THE S. E. C. SANCTIONED REPARATIONS PROCESS THAT PARTICIPATION WAS IMPORTANT TO THEM BECAUSE RESIDUALS OFTEN AREN'T EASY TO CALCULATE UNLIKE STOCKS OR BONDS MANY PARTNERSHIPS ARE ILLIQUID AND THUS CAN'T EASILY BE RESOLD IN THE SECONDARY MARKETPLACE AND CONVERTED TO CASH INSTEAD THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT AND AN INDEPENDENT CLAIMS ADMINISTRATOR CURRENTLY ARE NEGOTIATING HOW TO SET A FRAMEWORK FOR DETERMINING RESIDUAL VALUES THE TALKS COULD LEAD TO AN AGREEMENT BY THIS WEEK OR NEXT UNTIL THEN MOST CLAIMS WON'T HAVE A CHANCE OF GETTING SETTLED THE GAP IN SETTING RESIDUALS IS HUGE PRUDENTIAL SAYS THE RESIDUAL VALUE OF ITS PARTNERSHIPS TOTALS MORE THAN ONE POINT FIVE BILLION DOLLARS IT ARRIVED AT THAT FIGURE BY USING SUCH MEASURES AS COMPARABLE SALES REPLACEMENT COST AND DISCOUNTED CASH FLOW BASED ON PROJECTIONS BUT THE PARTNERSHIPS' TRUE VALUE OR THE PRICE INVESTORS COULD FETCH FOR THEM IN THE MARKET IS BARELY HALF OF WHAT PRUDENTIAL CLAIMS SOME PARTNERSHIP EXPERTS SAY INDEED PARTNERSHIPS' RESIDUAL VALUES HAVE BEEN A MAJOR STICKING POINT IN PRIVATE ARBITRATION AND COURT CASES QUOTE MY SPINE IS SHIVERING AS I THINK ABOUT IT QUOTE SAYS WILLIAM JORDAN A FLORIDA STATE UNIVERSITY ACCOUNTING PROFESSOR WHO HAS TESTIFIED AS AN EXPERT WITNESS IN MANY PARTNERSHIP CASES MY FEAR IS PRUDENTIAL WILL BE ALLOWED TO PRICE THEM ACCORDING TO ASSET VALUE AS GOING CONCERNS BUT THEY'RE NOT WORTH WHAT THEIR ASSETS ARE AND NOBODY'S IN THERE TELLING THE OTHER PEOPLE'S STORY FOR INVESTORS THE CHASM OVER RESIDUALS REFLECTS THE POTENTIAL PITFALLS IN THE REPARATIONS PROCESS IT ALSO UNDERSCORES THE IMPORTANCE OF NOT RUSHING INTO A SETTLEMENT BEFORE ASSESSING HOW THE SETTLEMENTS SHAKE OUT FROM THE THREE HUNDRED THIRTY MILLION DOLLARS RESTITUTION FUND INVESTORS HAVE A YEAR TO FILE CLAIMS THOUGH ABOUT EIGHTEEN THOUSAND INVESTORS ALREADY HAVE FILED THEM AND PRUDENTIAL IS REQUIRED TO KEEP A SETTLEMENT DATABASE RESIDUALS MOST OFTEN AFFECT REAL ESTATE AND AIRPLANE LEASING PARTNERSHIPS BUT THE STAKES FOR MOST PRUDENTIAL PARTNERSHIP INVESTORS ARE HIGH CONSIDER OF THEIR EIGHT POINT ONE FIVE BILLION DOLLAR OUTLAY PARTNERSHIP INVESTORS HAVE RECEIVED JUST THREE BILLION DOLLARS IN DISTRIBUTIONS THE BULK OF WHATEVER REMAINING VALUE IS LEFT IS RESIDUALS PRUDENTIAL'S RESIDUAL TAB WILL GO A LONG WAY TOWARD DETERMINING HOW MUCH IT ULTIMATELY WILL PAY IN THE RESTITUTION FUND THE THREE HUNDRED THIRTY MILLION DOLLARS IS MERELY A DOWN PAYMENT THE S. E. C. SAID THE RESTITUTION FUND IS OPEN ENDED SETTING RESIDUAL VALUES REALLY DOES IMPACT WHAT WE'LL BE PAYING OUT SAYS JOHN MURRAY PRUDENTIAL'S DIRECTOR OF CORPORATE RISK MANAGEMENT UNDER THE SETTLEMENT ACCORD INVESTORS WHO BOUGHT ANY OF SEVEN HUNDRED EIGHT PRUDENTIAL PARTNERSHIPS BETWEEN NINETEEN EIGHTY AND NINETEEN NINETY HAVE RECEIVED A CLAIMS FORM TO TRY TO RECOVER THEIR MONEY FROM THE FIRM PRUDENTIAL WILL OFFER A SETTLEMENT OR REJECT THE CLAIM IF INVESTORS ARE DISSATISFIED THEY CAN SUBMIT THE CLAIM TO AN ARBITRATOR SELECTED BY THE CLAIMS ADMINISTRATOR WHO THEN WILL MAKE A RULING ANY INVESTOR WHO SUBMITS A CLAIM CAN RECOVER COMPENSATORY DAMAGES THAT COVER LOSSES BUT NOT PUNITIVE DAMAGES OR ATTORNEYS' FEES INVESTORS ALSO WILL BE ELIGIBLE TO RECOVER INTEREST CALCULATED AT THE ANNUALIZED TREASURY BILL RATE DURING THE TIME OF THE INVESTMENT RESIDUALS ALSO AFFECT HOW MUCH INVESTORS WILL RECEIVE IN INTEREST THE DISCUSSIONS ON RESIDUALS HAVE INTENSIFIED IN RECENT WEEKS IRVING M. POLLACK THE CLAIMS ADMINISTRATOR HAS CAUTIONED PRUDENTIAL ON ITS CASH FLOW PROJECTIONS AMONG OTHER THINGS I'M NOT INTERESTED IN WHAT THIS MAY BE WORTH IN THE YEAR TWO THOUSAND FIFTEEN YOU'VE GOT TO HAVE A REALISTIC VALUATION SAYS MR. POLLACK WHO IS A FORMER S. E. C. COMMISSIONER AND ENFORCEMENT CHIEF WE'RE GOING TO BE FAIRLY HARD NOSED ON IT MR. POLLACK SAYS HIS ASSOCIATES HAVE QUOTE DONE A LOT OF SPADE WORK QUOTE IN GATHERING DATA TO SET RESIDUAL VALUES BUT HE CONCEDES THAT DETERMINING RESIDUALS IS EXTREMELY DIFFICULT AND POINTS UP THE COMPLEXITY OF HIS TASK I'VE GOT TO BE FAIR TO CLAIMANTS BUT I CAN'T BE UNFAIR TO PRUDENTIAL MR. POLLACK SAYS PRUDENTIAL FOR ITS PART SAYS IT RECENTLY RETAINED ANOTHER APPRAISAL COMPANY TO GAUGE CASH FLOW THOUGH SOME RESIDUALS ARE BASED ON ESTIMATES AND OTHERS ON MARKET VALUES THEY ARE BOTH FAIR ACCORDING TO PRUDENTIAL NOBODY WOULD TELL YOU THAT THESE VALUES ARE ALWAYS FIRM SAYS PRUDENTIAL'S MR. MURRAY THERE'S AN ART FORM OUT THERE FOR THE APPRAISAL PROCESSAN ART FORM THAT HAS BEEN AROUND A LONG TIME AND IS AS GOOD AS YOU'RE GOING TO GET ONE THING IS CLEAR INVESTORS WON'T HAVE ANY INPUT IN SETTING RESIDUALS BARRING AN EXTRAORDINARY EVENT SUCH AS THEY FOUND GOLD UNDER SOME BUILDING SAYS MR. POLLACK SAYS PRUDENTIAL'S MR. MURRAY SOMEBODY HAS TO MAKE A DECISION ON WHAT IT'S WORTH SOME LAWYERS ARE CONSIDERING URGING THEIR CLIENTS TO SELL THE PARTNERSHIPS IN THE SECONDARY MARKET TO DEMONSTRATE HOW LITTLE THE INVESTMENTS ARE WORTH THE IDEA THE LAWYERS SAY IS TO FIX INVESTORS' LOSSES AND NOT MAKE THEM SUBJECT TO ANY SPECULATION OR GUESSWORK MR. JORDAN THE ACCOUNTING PROFESSOR EVEN HAS SUGGESTED THAT INVESTORS OUGHT TO BE ABLE TO TENDER THEIR PARTNERSHIPS TO PRUDENTIAL AT THE RESIDUAL VALUE SET BY THE FIRM THIS WOULD PROD PRUDENTIAL TO MORE ACCURATELY REFLECT THE PARTNERSHIPS' VALUE HE SAYS TWO MONTHS FROM TODAY ON MARCH THIRTY FIRST THE LAST U. S. TROOPS WILL PULL OUT OF SOMALIA NO ONE KNOWS WHAT WILL HAPPEN ON APRIL FIRST U. S. OFFICIALS ARE HOPING THAT THE SOMALI PEOPLE ARE SO WEARY OF FAMINE AND DEATH THAT THEY WILL RESTRAIN THE WARLORDS FROM LAUNCHING ANOTHER ALL OUT CIVIL WAR INSTEAD A U. S. DIPLOMAT PREDICTS THERE WILL BE QUOTE MIDLEVEL GANG WARFARE IT WON'T BE PEACEFUL BUT IT MIGHT BE REASONABLY STABLE NO ONE IS RULING OUT A RETURN TO TOTAL ANARCHY THOUGH THE U. S. AND SEVERAL EUROPEAN NATIONS THAT ALSO ARE GETTING OUT HAVE MADE CONTINGENCY PLANS TO EVACUATE REMAINING UNITED NATIONS FORCES SHOULD THEY COME UNDER ATTACK FOR NOW AT LEAST SOME TWENTY THOUSAND U. N. TROOPS DRAWN ALMOST TOTALLY FROM THE THIRD WORLD HAVE AGREED TO STAY ON THE CLINTON ADMINISTRATION HAS COME UP WITH AN INTERESTING RATIONALE TO COVER ITS RETREAT ALTHOUGH NO ONE HAS USED THE TERM IT IS A FOREIGN POLICY VERSION OF EMPOWERMENT WE DID THE BEST WE COULD FOR THE SOMALIS THE ARGUMENT GOES AND NOW IT'S UP TO THEM TO DECIDE WHETHER THEY WANT WAR OR PEACE WHILE INTENDED TO INSULATE PRESIDENT CLINTON FROM FURTHER BLAME THE ARGUMENT MAY CONTAIN THE KERNEL OF A NEW MORE MODEST PEACE KEEPING DOCTRINE FOR BOTH THE U. S. AND THE U. N. IF SOMALIA STABILIZES THE U. S. MAY BE WILLING TO CONSIDER OTHER LIMITED MISSIONS AND PRESS FORWARD WITH MUCH NEEDED REFORMS OF U. N. PEACE KEEPING CAPABILITIES BUT IF ALL HELL BREAKS LOOSE THE ADMINISTRATION WITH A HEARTFELT I TOLD YOU SO FROM THE CONGRESS COULD WALK AWAY FROM PEACE KEEPING ALTOGETHER IT'S NOT CLEAR HOWEVER THAT THE SOMALIS HAVE BEEN GIVEN WHAT THEY NEED TO TAKE CONTROL OF THEIR OWN DESTINY AS EVER THE BIGGEST DOUBTS REVOLVE AROUND THE U. N. FAILURE TO DISARM SOMALI CLANS AND MILITIAS A U. N. SECURITY COUNCIL RESOLUTION WHICH COULD PASS THIS WEEK WILL CALL FOR VOLUNTARY DISARMAMENT THE U. N. MEANWHILE WILL PROVIDE AID AND RECONSTRUCTION HELP ONLY TO SOMALI LEADERS WHO ARE WILLING TO KEEP THE PEACE THOSE WHO ATTACK PEACE KEEPERS OR EACH OTHER WILL HAVE TO DO WITHOUT SUCH SUPPORT THE U. N. AND THE U. S. ALREADY HAVE BUILT A NEW HIGHWAY AROUND MOGADISHU WHERE THE MILITIAS AGAIN CONTROL THE STREETS SO THEY CAN BYPASS THE CAPITAL AND STILL DELIVER AID THE U. N. COULD END UP ABANDONING MOGADISHU ALTOGETHER WITH THIS APPROACH OFFICIALS ARE HOPING TO BUILD AT LEAST SOME STABILITY REGION BY REGION THE U. N. WILL CONTINUE TO ENCOURAGE NEGOTIATIONS BETWEEN THE DIFFERENT CLAN LEADERS AND WARLORDS WITH LITTLE EXPECTATION THAT THEY WILL AGREE ON WHO SHOULD CONTROL A NEW CENTRAL GOVERNMENT IT COULD BE YEARS BEFORE SOMALIA HAS A FUNCTIONING GOVERNMENT SAYS ONE U. S. OFFICIAL THERE ARE DOZENS OF REASONS WHY SUCH AN APPROACH COULD FAIL THE BIGGEST PROBLEM REMAINS WARLORD MOHAMED FARAH AIDEED WHOSE LUST FOR POWER IS MATCHED ONLY BY HIS ANIMOSITY TOWARD THE U. N. MEANWHILE THE RECONSTRUCTION PROGRAM THAT IS SUPPOSED TO ENCOURAGE SOMALIS TO KEEP THE PEACE HAS GOTTEN OFF TO A SLOW START THE U. S. HAS PLEDGED ONE HUNDRED MILLION DOLLARS AND IS HOPING TO RAISE MORE AT A DONORS' CONFERENCE SCHEDULED FOR THIS WEEK IN NAIROBI THE U. N. ALSO IS HURRYING TO TRAIN AND ARM A NEW NEUTRAL SOMALI POLICE FORCE BUT THE NEW FORCE MAY NOT HAVE THE SKILLS IT NEEDS IN TIME TO STAND UP TO THE WARLORDS AND THEIR TEEN AGE THUGS OR EVEN TO HOLD ON TO THEIR NEWLY IMPORTED WEAPONS THE APPROACH DOES HAVE IN ITS FAVOR THE MORAL STRENGTH OF SOMALI CLAN ELDERS AND RELIGIOUS LEADERS WHO DESPERATELY WANT PEACE THE MEMORIES OF THREE HUNDRED FIFTY THOUSAND DEAD ALSO ARE A FORCE FOR PEACE NO MATTER HOW SOMALIA TURNS OUT EMPOWERMENT MAY BE A GOOD BASIS FOR THE CLINTON ADMINISTRATION'S LONG POSTPONED PEACE KEEPING DOCTRINE BUT IT STILL DOESN'T GET THE U. S. OFF THE HOOK FOR EMPOWERMENT TO WORK COUNTRIES MUST BE GIVEN THE MINIMUM CONDITIONS FROM WHICH TO BUILD PEACE EVEN THAT ENTAILS REAL DANGERS AND SACRIFICES IF A PEACE ACCORD IS SIGNED IN BOSNIA FOR INSTANCE THE U. S. WILL HAVE TO DECIDE WHETHER IT'S WORTH TAKING EVEN THE DIMINISHED RISKS OF HELPING TO KEEP A PEACE TO WHICH ALL SIDES HAVE AGREED BUT IF PRESIDENT CLINTON OR CONGRESS DECIDES NOT TO SEND TROOPS NO AMOUNT OF RATIONALIZATION WILL BE ABLE TO COVER THEIR RETREAT TENNECO INCORPORATED SAID IT WILL MAKE A NINETEEN POINT NINE MILLION DOLLAR MANDATORY ANNUAL PRINCIPAL PAYMENT TO ITS SINKING FUND MARCH FIRST THE DIVERSIFIED INDUSTRIAL CORPORATION SAID THE FUNDS WILL BE USED TO REDEEM ONE HUNDRED NINETY FIVE THOUSAND SEVEN HUNDRED FORTY FOUR SHARES OF ITS SEVEN DOLLAR AND FORTY CENT CUMULATIVE PREFERRED STOCK HOLDERS OF RECORD JANUARY TWENTIETH WHO WERE SELECTED BY LOT TO PARTICIPATE IN THE REDEMPTION WILL BE PAID ONE HUNDRED DOLLARS A SHARE PLUS ONE DOLLAR AND EIGHTY FIVE CENTS IN DIVIDENDS CONTINENTAL AIRLINES HIRED GORDON M. BETHUNE AS ITS NEW PRESIDENT AND CHIEF OPERATING OFFICER SNATCHING THE SENIOR BOEING COMPANY MANAGER WHO OVERSEES DEVELOPMENT OF THE MANUFACTURER'S NEW SEVEN HUNDRED THIRTY SEVEN TO SEVEN HUNDRED SMALL JETLINER THE HOUSTON BASED CARRIER GETS AN INDUSTRY VETERAN FOCUSED INTENTLY ON AIRCRAFT EFFICIENCY AT A TIME WHEN IT IS ITSELF PARING UNPROFITABLE OPERATIONS AND BEEFING UP ITS LOW FARE SHORT HAUL SERVICE DUBBED CALITE INDEED CONTINENTAL WILL ANNOUNCE TODAY THAT IT'S VASTLY INCREASING THE NUMBER OF DAILY CALITE FLIGHTS THE MOVE ALSO REUNITES THE FIFTY TWO YEAROLD MR. BETHUNE WITH HIS FORMER BOSS FROM NOW DEFUNCT BRANIFF AIRLINES CONTINENTAL CHIEF EXECUTIVE OFFICER ROBERT R. FERGUSON THE THIRD FOR BOEING MR. BETHUNE'S SUDDEN DEPARTURE IS A BLESSING AND A CURSE IT PUTS A BOEING BACKER AT THE HELM OF AN IMPORTANT CUSTOMER THE FIRST OF NINETY TWO BOEING JETS CONTINENTAL HAS ORDERED WILL BE DELIVERED FEBRUARY EIGHTH BUT IT YANKS THE PERSONABLE MR. BETHUNE FROM HIS CRUCIAL ROLE AT THE DIVISION THAT MAKES SEVEN THIRTY SEVEN AND SEVEN FIFTY SEVEN AIRLINERS HE HAS BEEN OVERSEEING THE COMPANY'S ONE BILLION DOLLAR INVESTMENT IN THE NEW GENERATION SEVEN THIRTY SEVEN AN UPGRADED MODEL THAT BOEING NEEDS TO DEVELOP AND BUILD INEXPENSIVELY TO COMPETE WITH AIRBUS INDUSTRIE'S A. THREE TWENTY THE SEVEN HUNDRED THIRTY SEVEN TO SEVEN HUNDRED'S LAUNCH CUSTOMER IS DALLAS BASED SOUTHWEST AIRLINES WHICH CALITE HAS EMULATED AT CONTINENTAL MR. FERGUSON WILL RELINQUISH THE PRESIDENT'S TITLE AND BECOME VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER A TITLE HE HELD PRIOR TO APRIL NINETEEN NINETY THREE WHEN CONTINENTAL EMERGED FROM CHAPTER ELEVEN BANKRUPTCY LAW PROTECTION ACTUALLY MR. BETHUNE WILL SUCCEED LEWIS JORDAN CONTINENTAL'S PRESIDENT AND CHIEF OPERATING OFFICER UNTIL LAST MARCH WHEN HE WAS ASKED TO RESIGN ONE REASON FOR MR. FERGUSON'S DISSATISFACTION WITH MR. JORDAN WAS A COMPANY STUDY THAT CONCLUDED THE AIRLINE PAID ABOUT TWO HUNDRED MILLION DOLLARS MORE A YEAR ON MAINTENANCE THAN ITS FAR LARGER COMPETITORS MR. BETHUNE IS ATTUNED TO THE INDUSTRY'S SHIFT TOWARD LOW COST HIGHLY EFFICIENT SERVICE AND HAS BEEN KNOWN TO LAUNCH INTO LENGTHY SPIRITED EXHORTATIONS ON THE SUBJECT WITH LITTLE PROMPTING IN A RECENT INTERVIEW HE PROFESSED AN ADMIRATION FOR SOUTHWEST CHAIRMAN HERBERT KELLEHER AND NOTED THAT QUOTE YOU TEND TO EMULATE PEOPLE YOU ADMIRE QUOTE UNTIL JOINING BOEING IN NINETEEN EIGHTY EIGHT MR. BETHUNE SPENT MOST OF HIS CAREER IN AIRLINE JOBS BECOMING A SENIOR VICE PRESIDENT AT PIEDMONT AIRLINES IT WAS DURING STINTS AS ENGINEERING AND MAINTENANCE CHIEF OF WESTERN AIRLINES AND BRANIFF THAT HE EARNED THE NICKNAME OILCAN AND WORKED FOR MR. FERGUSON A FORMER BRANIFF TREASURER A CERTIFIED COMMERCIAL JET PILOT AND LICENSED AIR FRAME AND ENGINE MECHANIC MR. BETHUNE SAID HE FOUND MR. FERGUSON'S OFFER IRRESISTIBLE THERE ARE NOT THAT MANY BIG AIRLINES HE SAID NOTING THAT HE AGREED TO TAKE THE JOB RECENTLY AFTER DECLINING THE OFFER LATE LAST YEAR WITH MR. BETHUNE'S DEPARTURE WHICH CAUGHT MANY BOEING MANAGERS BY SURPRISE THE AIRCRAFT MAKER NAMED AS A SUCCESSOR WILLIAM E. SELBY SIXTY GENERAL MANAGER OF AIRCRAFT PARTS FABRICATION AND A LEADER IN COMPANYWIDE INITIATIVES TO FERRET OUT COST SAVINGS FRANCIS MER THE CHAIRMAN OF USINOR SACILOR IS IN THE EYE OF A STORM AS EUROPE'S LONG PROTECTED STEELMAKERS CONFRONT LOSSES RECESSION AND SUBSIDIZED RIVALS STEEL PRODUCTS ARE STARTING TO POUR IN FROM EASTERN EUROPE AND THE FORMER SOVIET UNION WITH THE RISE OF ECONOMIC LIBERALISM AND FREE TRADE BRUTAL MARKET FORCES ARE RESHAPING THE RULES USINOR YESTERDAY REPORTED AN ESTIMATED NINETEEN NINETY THREE LOSS OF FIVE POINT EIGHT BILLION FRENCH FRANCS NINE HUNDRED SEVENTY EIGHT POINT EIGHT MILLION DOLLARS WHICH WAS FAR WORSE THAN EXPECTED AND MORE THAN DOUBLE THE YEAR EARLIER LOSS OF TWO POINT FOUR BILLION FRANCS THIS IS THE FRENCH STATE OWNED GROUP'S THIRD CONSECUTIVE YEARLY LOSS AND THE COMPANY IS FORECASTING A LOSS OF TWO BILLION FRANCS FOR THE CURRENT YEAR IF MARKET CONDITIONS DON'T DETERIORATE FURTHER CONSOLIDATED REVENUE AT EUROPE'S BIGGEST STEELMAKER FELL THIRTEEN PERCENT IN NINETEEN NINETY THREE TO A PRELIMINARY SEVENTY FIVE POINT FOUR BILLION FRANCS FROM EIGHTY SEVEN BILLION FRANCS NOT SURPRISINGLY MR. MER A FIFTY FOUR YEAR OLD ALUMNUS OF FRANCE'S ELITE ECOLE POLYTECHNIQUE FEELS IRRITATED THE DOG EAT DOG STEEL BUSINESS TODAY HAS LITTLE IN COMMON WITH THE OLD FRENCH IDEAL OF A RATIONAL INDUSTRIAL ENVIRONMENT SHAPED BY STATE POLICY MR. MER HOWEVER WHOSE COMPANY IS SLATED FOR PRIVATIZATION SAYS HE DOESN'T FEAR FAIR COMPETITION IT'S MISGUIDED GOVERNMENT INTERVENTION AND THE LACK OF INTERVENTION WHERE AND WHEN IT'S REALLY NEEDED THAT ANGERS HIM MEANWHILE USINOR HASN'T RECENTLY RECEIVED AN INFUSION OF GOVERNMENT MONEY UNLIKE SOME OF ITS MAJOR COMPETITORS SUCH AS ITALY'S STATE OWNED ILVA COMPANY OR SPAIN'S CIA SIDERURGICA INTEGRAL AND THE EUROPEAN UNION IS TIPPING THE BALANCE BY ALLOWING SUBSIDIES FOR SOME OF ITS PRODUCERS AND REFRAINING FROM LIMITING IMPORTS OF STEEL PRODUCTS FROM EASTERN EUROPE AND THE COMMONWEALTH OF INDEPENDENT STATES IN THE NAME OF FREE TRADE QUOTE WE DON'T HAVE ANY PROBLEM IN ACCEPTING THE PRINCIPLE OF FREE COMPETITION ON THE ONLY CONDITION THAT SUCH COMPETITION IS BETWEEN PEOPLE PLAYING MORE OR LESS BY THE SAME RULES QUOTE SAID MR. MER IN A RECENT INTERVIEW AT THE COMPANY'S HEADQUARTERS JUST LAST MONTH THE E. U. CLEARED SIX POINT SEVEN NINE BILLION EUROPEAN CURRENCY UNITS SEVEN POINT FIVE SIX BILLION DOLLARS IN SUBSIDIES TO A GROUP OF AILING STATE OWNED STEELMAKERS IN ITALY SPAIN GERMANY AND PORTUGAL INCLUDING ILVA AND C. S. I. BY SHIELDING THESE PRODUCERS FROM THE FREE MARKET SANCTION OF BANKRUPTCY THE MOVE INCREASES COMPETITIVE PRESSURE ON BELEAGUERED NONSUBSIDIZED PRODUCERS SUCH AS USINOR OR THYSSEN A. G. WHICH LAST WEEK REPORTED A NINE HUNDRED NINETY FOUR MILLION MARK FIVE HUNDRED SIXTY NINE POINT EIGHT MILLION DOLLARS LOSS FOR FISCAL NINETEEN NINETY THREE IN ADDITION THE E. U. IS DOING LITTLE TO FORCE SUBSIDIZED PRODUCERS TO CLOSE DOWN EXCESS CAPACITY BUT USINOR'S BIG NINETEEN NINETY THREE LOSS OF ABOUT TWO THOUSAND NINE HUNDRED FRANCS A TON OF STEEL PRODUCED COULD ALSO FORCE THE GOVERNMENT OF FRENCH PRIME MINISTER EDOUARD BALLADUR TO MAKE SOME TOUGH DECISIONS ANALYSTS SAY EITHER IT'LL HAVE TO LET THE STEEL COMPANY ACCELERATE CLOSURES AND LAY OFF MORE WORKERS AN UNPOPULAR MOVE IN A COUNTRY WHERE UNEMPLOYMENT IS A POLITICAL HOT POTATO OR PARIS WILL HAVE TO GIVE USINOR SOME SORT OF BAILOUT WHICH WOULD LAND FRANCE IN TROUBLE WITH THE EUROPEAN COMMISSION'S COMPETITION AUTHORITIES I DON'T BELIEVE THEY CAN STICK IT OUT. SAYS PETER FISH MANAGING DIRECTOR OF MEPS EUROPE LIMITED A CONSULTING FIRM IN THE UNITED KINGDOM MR. FISH SAYS USINOR WILL BE FORCED TO START DIVESTING MORE OF ITS NONCORE ACTIVITIES FOR EXAMPLE IN THE U. S. WHERE MR. MER HAD EMBARKED ON AN AGGRESSIVE ACQUISITION SPREE USINOR'S LOSSES ALSO COMPLICATE THE GOVERNMENT'S GOAL OF PRIVATIZING THE COMPANY PRIVATIZATION HAD BEEN EXPECTED AS EARLY AS NEXT YEAR WHEN STEEL DEMAND AND PRICES ARE EXPECTED TO RECOVER BUT WITH CONTINUING HEAVY LOSSES AND A HEAVY DEBT LOAD THE COMPANY IS ILL PREPARED FOR A PUBLIC OFFER STILL MR. MER HAS WON HIGH MARKS IN THE INDUSTRY WITH HIS RELENTLESS EFFORTS TO RESTRUCTURE AND MODERNIZE THE STEEL GIANT WHILE INVESTING HEAVILY IN RESEARCH AND DEVELOPMENT THIS YEAR THE COMPANY PLANS TO REDUCE ITS OPERATING COSTS BY A WHOPPING ONE POINT FIVE BILLION FRANCS IF IT SURVIVES ITS CURRENT WOES USINOR COULD WELL EVOLVE INTO ONE OF EUROPE'S MOST COMPETITIVE STEELMAKERS ANALYSTS SAY COMPETITIVE PRESSURES ARE BUILDING UP FLEDGLING EXPORTERS IN EASTERN EUROPE AND IN THE FORMER SOVIET UNION ARE ADDING PRESSURES WITH THEIR LOW PRODUCTION COSTS AND WEAK CURRENCIES STEEL EXPORTS FROM EASTERN EUROPE AND THE C. I. S. TO THE TWELVE NATION E. U. TOTALED ABOUT THREE POINT FIVE MILLION TONS LAST YEAR THE BRUSSELS BASED INDUSTRY FEDERATION EUROFER ESTIMATES THAT'S DOWN FROM FOUR POINT THREE MILLION TONS IN NINETEEN NINETY TWO A DECLINE ATTRIBUTED TO WEAK DEMAND IN WESTERN EUROPE HOWEVER IN THE FEW MORE ROBUST SEGMENTS OF THE STEEL MARKET EASTERN EUROPEAN AND C. I. S. PRODUCERS GAINED MARKET SHARE LAST YEAR EUROFER SAYS INDICATING THAT EXPORTS ARE POISED TO BOOM ONCE WESTERN EUROPEAN DEMAND RECOVERS THAT'S ALL THE MORE WORRISOME MR. MER SAYS BECAUSE THERE ARE NO WORLD WIDE RULES GOVERNING THE STEEL TRADE STEEL PRODUCTS WERE REMOVED FROM LAST YEAR'S URUGUAY ROUND GLOBAL TRADE ACCORD UNDER PRESSURE FROM THE U. S. THE MOVE WHICH WAS OPPOSED BY THE E. U. MEANS THAT STEEL IS UNLIKELY TO BE COVERED BY NORMAL TRADING RULES ANYTIME SOON MR. MER FRETS THAT WHILE THE U. S. CONTINUES TO PROTECT ITS MARKET WITH ANTIDUMPING LEVIES THE E. U. WILL BE FORCED TO ACCEPT INCREASING AMOUNTS OF EASTERN STEEL FOR THE SAKE OF ECONOMIC INTEGRATION FOR THE EUROPEAN COMMISSION LETTING IN IMPORTS FROM EASTERN EUROPE AND THE FORMER SOVIET UNION IS A POLITICAL IMPERATIVE THOUGH HE DOESN'T CALL FOR PROTECTIONISM HE ADDS THAT EUROPEAN PRODUCERS DESERVE A TRANSITION PERIOD TO ADAPT WHILE THE FORMER SOVIET BLOC IS INCORPORATED INTO THE WORLD TRADING SYSTEM TODAY'S CHAOTIC BUSINESS ENVIRONMENT SERIOUSLY COMPLICATES MR. MER'S MISSION WHICH SINCE HE TOOK THE HELM AT USINOR IN NINETEEN EIGHTY SIX HAS BEEN TO ABSORB AND RESTRUCTURE VIRTUALLY ALL OF THE FRENCH STEEL INDUSTRY UNDER THE USINOR UMBRELLA THE COMPANY WAS ESTABLISHED IN NINETEEN EIGHTY SIX AS PART OF A GOVERNMENT BAILOUT OF THE COUNTRY'S BANKRUPT STEEL INDUSTRY IT HASN'T BEEN AN EASY JOB LAYING OFF THOUSANDS OF WORKERS AND CLOSING DOZENS OF PLANTS HAS COST USINOR DEARLY UNDER FRANCE'S GENEROUS JOB PROTECTION LAWS JUST DURING NINETEEN NINETY THREE USINOR CUT ITS EMPLOYMENT BY TWENTY ONE THOUSAND TO SIXTY EIGHT THOUSAND LAST YEAR USINOR A KEY SUPPLIER OF STEEL SHEET TO CAR MAKERS WAS HIT BY THE PLUNGE IN EUROPEAN AUTO PRODUCTION CURRENCY DEVALUATIONS IN ITALY AND SPAIN WHICH ARE MAJOR EXPORT MARKETS FOR THE FRENCH GROUP ALSO HURT RESULTS THE COMPANY MEANWHILE CONTINUES TO BE PLAGUED BY HEAVY RESTRUCTURING AND DEBT SERVICING COSTS USINOR CUT BACK ITS DEBT TO AROUND TWENTY FIVE BILLION FRANCS LAST YEAR FROM TWENTY NINE POINT FIVE BILLION FRANCS IN NINETEEN NINETY TWO BUT THE DEBT TO ASSET RATIO NEVERTHELESS REMAINED AT A HEFTY ONE POINT TWO LAST YEAR COMPARED WITH ONE POINT TWO FOUR IN NINETEEN NINETY TWO AND ONE POINT ONE IN NINETEEN NINETY ONE THE COMPANY RAISED TWO HUNDRED FIVE MILLION DOLLARS LAST YEAR BY FLOATING PART OF ITS U. S. SPECIALTY STEEL SUBSIDIARY ON THE U. S. STOCK MARKET MUCH OF THE PROCEEDS WERE USED TO REPAY DEBT COMPANY OFFICIALS SAY BUT WHETHER THERE'S SCOPE FOR MORE WINDFALLS IS UNCLEAR AND SOME IN THE INDUSTRY BELIEVE USINOR MAY BE FORCED TO TURN TO THE FRENCH STATE FOR MONEY IN NINETEEN NINETY ONE USINOR GOT A TWO POINT FIVE BILLION FRANC CASH INJECTION FROM THE FRENCH STATE OWNED BANK CREDIT LYONNAIS IN RETURN FOR A NINE PERCENT STAKE THE BANK ALSO GOT A FURTHER ELEVEN PERCENT STAKE IN THE STEELMAKER FROM THE FRENCH GOVERNMENT MR. MER HOWEVER DENIES HE HAS ANY PLANS TO ASK THE GOVERNMENT FOR MORE MONEY SOLITEC INCORPORATED BLAMING A SHORTAGE OF CASH SAID IT DISMISSED DOZENS OF EMPLOYEES AT ITS HEAD OFFICE AND ITS COMPUMART SUBSIDIARY IN PORTLAND OREGON THE COMPANY WHICH MAKES CHIP PRODUCTION EQUIPMENT AND DISTRIBUTES ELECTRONICS GOODS ALSO SAID THAT JOE MCDOWELL ITS CHIEF EXECUTIVE OFFICER CUT HIS SALARY TO THE FEDERAL MINIMUM HOURLY WAGE AND THAT PARTHA SARATHY THE CHIEF FINANCIAL OFFICER HAD RESIGNED TO EASE ITS CASH CRUNCH SOLITEC SAID THAT IT MIGHT SEEK NEW INVESTORS OR SELL ONE OR MORE OF ITS OPERATIONS THE COMPANY SAID IT WAS DISCUSSING SUCH OPTIONS WITH SEVERAL GROUPS SOUTH KOREA'S INDUSTRIAL OUTPUT SHOWED AN ELEVEN POINT SEVEN PERCENT INCREASE IN DECEMBER FROM A YEAR AGO PROVIDING MORE EVIDENCE THAT THE NATION'S ECONOMY IS PULLING OUT OF ITS PROTRACTED STAGNANCY THE NATIONAL STATISTICAL OFFICE SAID THE OFFICE SAID THAT THE DECEMBER GAINS FOLLOWED A YEAR TO YEAR RISE OF TEN POINT FIVE PERCENT IN NOVEMBER CHRYSLER CORPORATION SAID THE STEEL PARTS AND ASSEMBLIES FOR ITS NEW MINIVAN CODE NAMED N. S. WILL BE BUILT AT THE STAMPING PLANT IN TWINSBURG OHIO CHRYSLER SAID IT WILL INVEST EIGHTY MILLION DOLLARS TO EQUIP THE PLANT FOR THE ADDITIONAL STAMPING BUSINESS CHRYSLER'S NEW VERSIONS OF THE DODGE CARAVAN PLYMOUTH VOYAGER AND CHRYSLER TOWN AND COUNTRY GO INTO PRODUCTION IN FALL NINETEEN NINETY FIVE THE STAMPING PLANT ALREADY BUILDS PARTS FOR A VARIETY OF PASSENGER CARS AND LIGHT TRUCKS SANYO ELECTRIC COMPANY A JAPANESE ELECTRONICS CONCERN REPORTED THAT ITS CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED NOVEMBER THIRTIETH SURGED FROM THE PREVIOUS YEAR BUT THE GAIN WAS LARGELY DUE TO SALES OF SECURITIES HOLDINGS SANYO'S CONSOLIDATED OPERATING PROFIT ON ITS MAIN BUSINESS OPERATIONS FELL THIRTEEN PERCENT TO TEN POINT OH FOUR BILLION YEN NINETY TWO POINT FOUR MILLION DOLLARS AND AFTER TAXES SANYO REMAINED IN THE RED PRETAX PROFIT JUMPED TO THREE POINT TWO THREE BILLION YEN FROM FIVE HUNDRED SIXTY TWO MILLION YEN BUT THE NET LOSS GREW TO ONE POINT FIVE SIX BILLION YEN FROM ONE POINT TWO NINE BILLION YEN THE PREVIOUS YEAR SALES EDGED DOWN ZERO POINT SEVEN PERCENT TO ONE POINT FIVE TWO SEVEN TRILLION YEN SANYO PREDICTED THAT IN THE CURRENT FISCAL YEAR IT WILL RETURN TO PROFITABILITY ON A CONSOLIDATED NET BASIS WITH RISING SALES AND PRETAX PROFITS THE COMPANY CITED HEALTHY ECONOMIC CONDITIONS IN ASIA AND THE U. S. AS WELL AS ITS EFFORTS TO RESTRUCTURE AND PURSUE NEW BUSINESS OPPORTUNITIES DOMESTIC SALES DROPPED TWO POINT SEVEN PERCENT TO EIGHT HUNDRED EIGHTY TWO POINT THREE FIVE BILLION YEN OR FIFTY EIGHT PERCENT OF TOTAL GROUP SALES WHILE OVERSEAS SALES ROSE TWO POINT THREE PERCENT TO SIX HUNDRED FORTY FOUR POINT FOUR FOUR BILLION YEN OR FORTY TWO PERCENT OF OVERALL SALES PRODUCTION AT JAPAN'S FACTORIES AND MINES AFTER ADJUSTMENT FOR SEASONAL FACTORS FELL ONE POINT SEVEN PERCENT IN DECEMBER FROM NOVEMBER THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID THE LATEST ONE POINT SEVEN PERCENT DECLINE WAS MUCH SMALLER THAN THE THREE POINT FIVE PERCENT PLUNGE THAT M. I. T. I. HAD PREDICTED FOR DECEMBER CENVILL DEVELOPMENT CORPORATION SAID THE U. S. BANKRUPTCY COURT IN MIAMI CONFIRMED A LIQUIDATION PLAN FOR THE REAL ESTATE DEVELOPER IN NINETEEN NINETY TWO CENVILL FILED FOR PROTECTION FROM ITS CREDITORS UNDER CHAPTER ELEVEN BANKRUPTCY PROCEEDINGS THAT SAME YEAR THE BANKRUPTCY COURT APPROVED THE SALE OF SEVERAL OF CENVILL'S ASSETS TO HILCOAST DEVELOPMENT CORPORATION THE UNITED STEELWORKERS OF AMERICA SAID THAT MEMBERS EMPLOYED BY U. S. X. CORPORATION APPROVED A LONG TERM CONTRACT BY A VOTE OF EIGHT THOUSAND FOUR HUNDRED FIVE TO TWO THOUSAND FOUR HUNDRED SEVENTY ONE THE CONTRACT IS EFFECTIVE FEBRUARY FIRST AND EXPIRES JULY THIRTY FIRST NINETEEN NINETY NINE IT COVERS FIFTEEN THOUSAND ONE HUNDRED TWENTY EIGHT EMPLOYEES AND PUTS A UNION REPRESENTATIVE ON THE U. S. X. BOARD ALONG WITH RAISING WAGES AND PENSIONS THE UNION SAID THE CURRENT AGREEMENT EXPIRES TODAY DESIGNS INCORPORATED SAID IT TOOK A RESTRUCTURING CHARGE OF NINE MILLION DOLLARS IN ITS FOURTH QUARTER ENDED SATURDAY TO CLOSE AS MANY AS TEN OF ITS STORES AND UPDATE OTHERS THE OPERATOR OF SPECIALTY RETAIL STORES SAID THE OUTLETS SLATED TO CLOSE GENERATED ABOUT THREE PERCENT OF THE COMPANY'S TOTAL SALES VOLUME IN THE YEAR TO DATE AS A RESULT OF EXPENSE SAVINGS ASSOCIATED WITH THE CLOSINGS THE RESTRUCTURING IS EXPECTED TO ADD ABOUT TWO MILLION DOLLARS TO PRETAX EARNINGS IN FISCAL NINETEEN NINETY FIVE JOSEPH F. KILLORAN VICE PRESIDENT AND CONTROLLER OF THIS COMPUTER CONCERN WAS NAMED CHIEF FINANCIAL OFFICER A NEWLY CREATED POSITION MR. KILLORAN IS FIFTY THREE YEARS OLD AMERICAN ANNUITY GROUP INCORPORATED SAID IT EXTENDED TO FEBRUARY EIGHTH THE EXPIRATION DATE OF ITS OFFER TO PURCHASE COMMON SHARES FOR ELEVEN DOLLARS EACH FROM HOLDERS WHO OWN TEN OR FEWER SHARES THE PREVIOUS EXPIRATION DATE FOR THE TENDER OFFER WAS JANUARY TWENTY EIGHTH THE COMPANY SAID AMERICAN ANNUITY SAID THAT AS OF JANUARY TWENTY SEVENTH ABOUT TWO THOUSAND NINE HUNDRED COMMON SHARES HAD BEEN TENDERED THE COMPANY THROUGH ITS GREAT AMERICAN LIFE INSURANCE UNIT IS ENGAGED IN THE SALE OF TAX DEFERRED ANNUITIES TO TEACHERS AND OTHER EMPLOYEES OF NONPROFIT INSTITUTIONS MEXICAN TRUCK AND BUS MAKER CONSORCIO G. GRUPO DINA S. A. AND MOTOR COACH INDUSTRIES INTERNATIONAL INCORPORATED OF PHOENIX SIGNED A PURCHASE AGREEMENT DINA WILL ACQUIRE ALL OF THE SHARES OUTSTANDING OF MOTOR COACH IN EXCHANGE FOR A NEW CLASS OF DINA STOCK DINA WILL EXCHANGE AMERICAN DEPOSITARY SHARES WORTH SIXTEEN DOLLARS AND SEVENTY TWO CENTS EACH IN L. SERIES STOCK FOR EACH SHARE OF MOTOR COACH COMMON STOCK AT THE EXCHANGE PRICE DINA IS PAYING A PREMIUM OF NEARLY THIRTY PERCENT FOR THE MOTOR COACH STOCK THE DEAL IS VALUED AT THREE HUNDRED THIRTY SEVEN MILLION DOLLARS DINA SAID THE MERGER IS EXPECTED TO BE CLOSED IN THE SECOND QUARTER ONE VALLEY BANCORP OF WEST VIRGINIA INCORPORATED SAID IT COMPLETED ITS ACQUISITION FRIDAY OF MOUNTAINEER BANKSHARES OF WEST VIRGINIA INCORPORATED FOR STOCK VALUED AT ONE HUNDRED NINETEEN MILLION DOLLARS UNDER THE TERMS OF THE PACT ONE VALLEY EXCHANGED ONE POINT FIVE SHARES OF COMMON STOCK FOR EACH SHARE OF MOUNTAINEER'S COMMON OUTSTANDING IN A TAX FREE EXCHANGE THE MERGER IS ACCOUNTED FOR AS A POOLING OF INTERESTS THE ONE HUNDRED NINETEEN MILLION DOLLAR VALUE IS BASED ON THE CURRENT MARKET PRICE OF ONE VALLEY COMMON STOCK THE COMPANY SAID ONE VALLEY IS A BANK HOLDING COMPANY WITH TWO POINT EIGHT BILLION DOLLARS IN ASSETS AND MOUNTAINEER HAS TOTAL ASSETS OF SEVEN HUNDRED THIRTY NINE MILLION DOLLARS AND TWENTY THREE FULL SERVICE BANKING OFFICES GEORGE RIORDAN SIXTY YEAR OLD PARTNER IN GEORGE RIORDAN AND COMPANY INVESTMENT BANKERS OF LOS ANGELES WAS ELECTED TO THE BOARD OF THIS OPERATOR OF BUFFET STYLE RESTAURANTS INCREASING THE BOARD'S SIZE TO NINE A COURT APPOINTED TRUSTEE OVERSEEING THE BANKRUPTCY RESTRUCTURING OF TOWERS FINANCIAL CORPORATION SUED ITS FORMER CHAIRMAN AND OTHERS FOR ONE POINT TWO BILLION DOLLARS CLAIMING THEY DEFRAUDED THE COMPANY OF MORE THAN FOUR HUNDRED MILLION DOLLARS IN A SUIT FILED IN U. S. BANKRUPTCY COURT HERE ALAN COHEN THE TRUSTEE CHARGED THAT STEVEN HOFFENBERG QUOTE SYSTEMATICALLY COVERED UP QUOTE FOUR HUNDRED MILLION DOLLARS IN LOSSES AT THE DEBT COLLECTION COMPANY BY REPORTING QUOTE BLATANTLY FALSE FINANCIAL STATEMENTS QUOTE IN ADDITION THE SUIT ASSERTS THAT MR. HOFFENBERG WHO MADE AN UNSUCCESSFUL BID FOR THE NEW YORK POST LAST YEAR AND OTHERS GROSSLY OVERSTATED TOWERS'S ASSETS AND THAT THEY CREATED ACCOUNTING RECORDS TO SUPPORT THE ALLEGED FRAUDULENT FINANCIAL STATEMENTS SO THAT HE COULD BORROW HUNDREDS OF MILLIONS OF DOLLARS FROM CREDITORS AND INVESTORS TO AGGRANDIZE HIMSELF AND SUPPORT HIS EXTRAVAGANT LIFESTYLE THE SUIT IS SEEKING TREBLE DAMAGES UNDER THE FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS STATUTE MR. HOFFENBERG DECLINED TO COMMENT HIS ATTORNEY MICHAEL ROSOFF WHO ALSO IS NAMED IN THE SUIT SAID HE HADN'T YET SEEN THE SUIT AND COULDN'T COMMENT ON IT IT'S THE FIFTH SEPARATE LAWSUIT THAT ALAN COHEN HAS FILED AGAINST MR. HOFFENBERG WHICH DOESN'T STRIKE ME AS BEING A PARTICULARLY EFFICIENT OR APPROPRIATE USE OF TOWERS'S ASSETS MR. ROSOFF SAID AS TRUSTEE MR. COHEN IS CURRENTLY CONDUCTING AN AUCTION TO SELL TOWERS A BANKRUPTCY JUDGE IS SCHEDULED TO HEAR THE RESULTS OF THE AUCTION WEDNESDAY TOWERS FILED FOR PROTECTION FROM CREDITORS UNDER THE U. S. BANKRUPTCY CODE LAST MARCH MR. HOFFENBERG FACES CIVIL FRAUD CHARGES FROM THE SECURITIES AND EXCHANGE COMMISSION AND HAS BEEN PENALIZED IN TWO STATES FOR KEEPING DEBTS THAT HIS COMPANIES HAD COLLECTED FOR CLIENTS THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE PERCENT HIGH TWO AND SEVEN EIGHTHS PERCENT LOW TWO AND SEVEN EIGHTHS PERCENT NEAR CLOSING BID THREE PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH THREE PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH FIVE PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT ONE OH PERCENT NINETY TO ONE HUNDRED FIFTY NINE DAYS THREE POINT TWO OH PERCENT ONE HUNDRED SIXTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT THREE OH PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE OH PERCENT THIRTY DAYS THREE POINT ONE TWO PERCENT SIXTY DAYS THREE POINT ONE FOUR PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE TWO PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT FIVE SIX PERCENT THREE MONTHS TWO POINT SIX NINE PERCENT SIX MONTHS THREE POINT OH FIVE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE PERCENT ONE MONTH THREE POINT OH FIVE PERCENT THREE MONTHS THREE POINT ONE NINE PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE PERCENT THIRTY DAYS THREE PERCENT SIXTY DAYS THREE POINT OH TWO PERCENT NINETY DAYS THREE POINT OH THREE PERCENT ONE HUNDRED TWENTY DAYS THREE POINT OH NINE PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE FOUR PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT FOUR MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND THREE EIGHTHS PERCENT SIX MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT NINE ONE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY TWENTY FOURTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE SIX PERCENT THIRTEEN WEEKS THREE POINT ONE FOUR PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT SEVEN EIGHT PERCENT SIXTY DAYS SIX POINT EIGHT FIVE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT SEVEN SEVEN PERCENT SIXTY DAYS SIX POINT EIGHT SEVEN PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FOUR POINT NINE FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN THREE PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS GAYLORD ENTERTAINMENT COMPANY SAID IT WILL TAKE A EIGHT HUNDRED THOUSAND DOLLAR CHARGE IN THE FIRST QUARTER BECAUSE OF A CONSOLIDATION OF THE MANAGEMENT TEAM IN ITS OPRYLAND HOSPITALITY AND ATTRACTIONS GROUP A MANAGEMENT TEAM OF SIX VICE PRESIDENTS HAS BEEN ESTABLISHED TO OVERSEE OPERATIONS OF THE GROUP IN ADDITION FIFTY SIX POSITIONS WILL BE LOST THE COUNTRY MUSIC AND COMMUNICATIONS COMPANY SAID THE CONSOLIDATION WILL RESULT IN ANNUALIZED SAVINGS OF FOUR MILLION DOLLARS THE CHARGE WILL BE FOR EARLY RETIREMENT AND SEVERANCE PAYMENTS CAPITAL HOLDING CORPORATION SAID IT WILL REDEEM AT FACE VALUE ALL ONE HUNDRED MILLION DOLLARS OF ITS ADJUSTABLE RATE CUMULATIVE PREFERRED STOCK SERIES F. MARCH SECOND THE COMPANY HAS ONE MILLION SERIES F. SHARES OUTSTANDING THE REDEMPTION PRICE WILL BE ONE HUNDRED DOLLARS A SHARE PLUS ACCRUED AND UNPAID DIVIDENDS TO THE REDEMPTION DATE THE SERIES F. STOCK CARRIES AN ADJUSTABLE QUARTERLY DIVIDEND RATE WITH A MINIMUM ANNUAL RATE OF SIX POINT SEVEN FIVE PERCENT AND A MAXIMUM ANNUAL RATE OF FOURTEEN PERCENT THE COMPANY SAID CAPITAL HOLDING A MULTI LINE INSURANCE HOLDING COMPANY SAID IT PAID QUARTERLY CASH DIVIDENDS AT AN ANNUAL RATE OF SIX POINT SEVEN FIVE PERCENT BLACK ENTERPRISE MAGAZINE HAS BEEN RANKING THE NATION'S BLACK OWNED COMPANIES BY SALES SINCE NINETEEN SEVENTY THREE NOT NINETEEN SEVENTY ONE AS STATED IN THE JANUARY NINETEENTH BUSINESS AND RACE COLUMN ALSO JOHNSON PUBLISHING COMPANY TOPPED THE LIST FROM NINETEEN EIGHTY FOUR TO NINETEEN EIGHTY SEVEN NOT NINETEEN SEVENTY ONE TO NINETEEN EIGHTY SEVEN AS STATED IN THE COLUMN THE FEDERAL NATIONAL MORTGAGE ASSOCIATION'S TWO HUNDRED FIFTY MILLION DOLLAR ISSUE OF STEPUP MEDIUM TERM NOTES DUE FEBRUARY TENTH NINETEEN NINETY NINE WAS PRICED AT PAR TO YIELD FOUR POINT FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES ARE CALLABLE ON FEBRUARY TENTH NINETEEN NINETY FIVE AT THAT TIME THE COUPON ON THE NOTES STEPS UP TO FIVE POINT SIX TWO PERCENT IN FRIDAY'S NEW SECURITIES ISSUES COLUMN IT WAS INCORRECTLY STATED THAT THE NOTES WERE NONCALLABLE ROBERT F. SAYDAH SIXTY FIVE YEARS OLD WAS ELECTED TO THE BOARD OF THIS CHEMICAL PROCESSOR SUCCEEDING ROGER F. REINKING FIFTY TWO WHO RETIRED MR. SAYDAH IS MANAGING PARTNER OF THE SAN FRANCISCO OFFICE OF HEIDRICK AND STRUGGLES AN EXECUTIVE SEARCH CONCERN EDGAR L. BALL SIXTY SEVEN YEARS OLD WAS NOMINATED AS A DIRECTOR OF THE STEEL AND OIL FIELD PRODUCTS AND EQUIPMENT CONCERN MR. BALL RETIRING INTERNATIONAL SECRETARY TREASURER OF THE UNITED STEELWORKERS OF AMERICA BECOMES THE FOURTEENTH MEMBER OF THE BOARD FORMED IN JUNE NINETEEN NINETY THREE Q. V. C. NETWORK INCORPORATED'S BOARD PLANS TO MEET TODAY TO DECIDE WHAT STEPS TO TAKE IN THE TWO DAY HOMESTRETCH OF THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INCORPORATED BEFORE TOMORROW'S FINAL BIDDING DEADLINE ACCORDING TO PEOPLE IN THE Q. V. C. CAMP Q. V. C. ALREADY HAS TAKEN THE NECESSARY STEPS TO OBTAIN FINANCING FOR A POSSIBLE HIGHER BID FROM ITS BANKS AND BELLSOUTH CORPORATION THE PEOPLE SAID BUT THEY CAUTIONED THAT A DECISION HASN'T BEEN MADE AND THAT ANY NEW BID WOULD TAKE INTO ACCOUNT THE DETERIORATION THAT HAS OCCURRED IN PARAMOUNT'S BUSINESS DURING THE FOUR AND A HALF MONTH CONTEST BETWEEN Q. V. C. AND VIACOM INCORPORATED PEOPLE FOLLOWING THE CONTEST EXPECTED THAT Q. V. C. WOULD EITHER MAKE A NEW BID TODAY OR ANNOUNCE THAT IT PLANS TO MAKE A NEW BID TOMORROW IN ORDER TO REDUCE THE CHANCE THAT VIACOM COULD RECEIVE FIFTY POINT ONE PERCENT OF PARAMOUNT SHARES UNDER ITS OWN NINE POINT EIGHT BILLION DOLLAR TENDER OFFER WHICH EXPIRES AT THE END OF TODAY VIACOM COULD WIN THE CONTEST IF IT OBTAINED FIFTY POINT ONE PERCENT OF PARAMOUNT STOCK TODAY AND Q. V. C. DIDN'T REVISE ITS OWN TEN POINT TWO BILLION DOLLAR OFFER SO Q. V. C. IS LIKELY EITHER TO ANNOUNCE A SMALL INCREASE WHICH COULD AUTOMATICALLY EXTEND THE CONTEST OR ANNOUNCE PLANS TO MAKE A NEW BID TOMORROW TRADERS SAID THAT EVEN JUST AN ANNOUNCEMENT BY Q. V. C. OF PLANS TO MAKE A NEW BID MIGHT BE SUFFICIENT TO DISSUADE INVESTORS FROM TENDERING THEIR PARAMOUNT SHARES TO VIACOM EVEN THOUGH VIACOM'S BID HAS THE ENDORSEMENT OF THE PARAMOUNT BOARD AND THE BACKING OF MANY TRADERS DISCLOSURE OF THE BOARD MEETING ITSELF COULD BE A DELAYING TACTIC BECAUSE Q. V. C.'S DECISION MAKING RESIDES AMONG A SMALL GROUP OF ITS CHAIRMAN BARRY DILLER AND ITS TWO LEAD INVESTORS BELLSOUTH THE REGIONAL BELL TELEPHONE COMPANY AND COMCAST CORPORATION THE CABLE T. V. CONCERN ALTHOUGH Q. V. C.'S OFFER HAS A HIGHER CURRENT MARKET VALUE TRADERS PREFER THE VIACOM BID BECAUSE IT INCLUDES A CONTINGENT VALUE SECURITY THAT RISES IN VALUE IF VIACOM'S STOCK DOESN'T APPRECIATE THE REASON TRADERS MIGHTN'T TENDER TO THE VIACOM BID IS THAT THEY WOULDN'T WANT TO CLOSE OUT THE CONTEST WITHOUT FINDING OUT WHETHER VIACOM OR Q. V. C. MAY BE SAVING A MUCH HIGHER OFFER FOR THE LAST DAY OF BIDDING BOTH Q. V. C. AND VIACOM HAVE AGREED NOT TO MAKE NEW BIDS AFTER TOMORROW UNDER BIDDING RULES SET UP BY PARAMOUNT ONE INVESTMENT BANKER FOR Q. V. C. CALLED SOME TRADERS ON FRIDAY ASKING THEIR OPINION ON ONE POSSIBLE COMPONENT OF A NEW Q. V. C. BID A CONTINGENT VALUE RIGHT WHOSE VALUE WOULD INCREASE IF Q. V. C.'S STOCK WENT DOWN THE PLANNED SALE OF CONTINENTAL BANK CORPORATION BRINGS TO AN END ONE OF THE MOST TUMULTUOUS CORPORATE STORIES IN U. S. HISTORY THIS SUMMER WHEN BANKAMERICA CORPORATION IS EXPECTED TO COMPLETE ITS ONE POINT NINE BILLION DOLLAR ACQUISITION OF THE CHICAGO BANK WILL MARK THE TENTH ANNIVERSARY OF THE FEDERAL GOVERNMENT'S FOUR POINT FIVE BILLION DOLLAR BAILOUT OF CONTINENTAL THE FEDERAL DEPOSIT INSURANCE CORPORATION IS STILL SELLING THE LAST OF THE BAD LOANS IT TOOK OFF CONTINENTAL'S HANDS AND THE AGENCY ESTIMATES ITS TOTAL LOSS ON THE BAILOUT AT ONE POINT OH THREE BILLION DOLLARS BUT BEYOND THE COST CONTINENTAL'S PLACE IN HISTORY MAY BE AS A WARNING AGAINST TOO RAPID GROWTH AND AGAINST PLACING TOO MUCH EMPHASIS ON ONE SECTOR OF THE BANKING BUSINESS IN THIS CASE ENERGY LENDING THE STORY OF CONTINENTAL ALSO SUGGESTS THAT GOVERNMENT BAILOUTS WHILE FINE FOR CALMING THE FINANCIAL MARKETS CAN'T UNDO THE DAMAGE A RECKLESS INSTITUTION INFLICTS ON ITSELF IN THE TEN YEARS SINCE THE BAILOUT CONTINENTAL HAS RETURNED TO HEALTH BUT ONLY BY STEADILY DWINDLING IN SIZE AND IMPORTANCE AMID AN INDUSTRY CONSOLIDATION THAT IS PRODUCING MEGABANKS QUOTE I DON'T THINK CONTINENTAL HAD MUCH CHANCE OF EVER CATCHING UP QUOTE JOHN E. SWEARINGEN THE FORMER AMOCO CORPORATION CHAIRMAN WHO INITIALLY RAN THE BANK FOR THE F. D. I. C. SAID FROM HIS RETIREMENT HOME IN PALM SPRINGS CALIFORNIA THIS IS A GOOD SOLUTION CONTINENTAL HAD ALREADY HAD ITS SECOND CHANCE WAY BACK IN NINETEEN THIRTY THREE WHEN IT WAS BAILED OUT FOR THE FIRST TIME BY THE DEPRESSION ERA RECONSTRUCTION FINANCE CORPORATION THE BANK PLAYED IT SAFE FOR THE NEXT FORTY YEARS BUT WHEN ROGER E. ANDERSON TOOK OVER AS CHAIRMAN IN NINETEEN SEVENTY THREE THAT CHANGED MANAGEMENT CONSULTANTS TOLD HIM TO GIVE JUNIOR OFFICERS MORE LENDING AUTHORITY AND HE DID DUN'S REVIEW A BUSINESS MAGAZINE IN NINETEEN SEVENTY EIGHT NAMED CONTINENTAL ONE OF THE FIVE BEST MANAGED U. S. COMPANIES AND MR. ANDERSON LET OUT THE THROTTLE THE WORST OF THE LOANS CAME THROUGH A SHOPPING MALL LENDER PENN SQUARE BANK OF OKLAHOMA CITY AND WHEN IT WAS CLOSED IN NINETEEN EIGHTY TWO CONTINENTAL'S TAILSPIN HAD BEGUN BUILT ON A FRAGILE BASE OF INSTITUTIONAL DEPOSITS OR HOT MONEY CONFIDENCE COLLAPSED BY MAY NINETEEN EIGHTY FOUR IN A BREATHTAKING TWENTY BILLION DOLLAR INTERNATIONAL DEPOSIT RUN THAT THREATENED THE ENTIRE BANKING SYSTEM GRIM HUMOR TOOK HOLD AS UNCLE SAM PLEADED FOR A BUYER A MERGER WITH MANUFACTURERS HANOVER COULD CREATE CONMAN BANK A SALE TO NOMURA SECURITIES AND CONTINENTAL WOULD BE NOMURA BANK BANK INSIDERS JOKED THEY WERE IN LINE TO RECEIVE STOCK PUTS INSTEAD OF OPTIONS REGULATORS BROUGHT IN AS SUPPOSED COEQUALS MR. SWEARINGEN AND WILLIAM S. OGDEN A CAREER BANKER AND THEY BROUGHT BACK THE DEPOSITS KEPT MANY CUSTOMERS AND EMPLOYEES AND BEGAN SELLING SOME OF THE F. D. I. C.'S STAKE TO SHAREHOLDERS THEY ALSO FOUGHT MR. SWEARINGEN THE SWAGGERING OILMAN HAD NEVER HAD MUCH REGARD FOR BANKERS AND LIKED TO TWEAK THE COMPETITION MR. OGDEN STIFF AND CHAINSMOKING LOVED BANKING AND THOUGHT SUCH SNIPING WAS POOR FORM BEFORE THEIR FIRST YEAR WAS FINISHED MR. SWEARINGEN HAD DEMANDED THE F. D. I. C.'S BACKING AS UNDISPUTED CHIEF EXECUTIVE WHEN MR. SWEARINGEN THREATENED TO QUIT WILLIAM ISAAC F. D. I. C. CHAIRMAN AT THE TIME NEARLY TOOK HIM UP ON THE OFFER WE JUST MADE A FOUR POINT FIVE BILLION DOLLAR INVESTMENT IN THIS INSTITUTION AND YOU'RE TELLING ME TO SHOVE IT MR. ISAAC PROTESTED ACCORDING TO AN OFFICIAL FAMILIAR WITH THEIR TALKS BUT MR. OGDEN WAS DEMOTED AND DENIED THE TOP JOB WHEN MR. SWEARINGEN RETIRED IN NINETEEN EIGHTY SEVEN THE OILMAN BROUGHT IN THOMAS C. THEOBALD FROM CITICORP HE DITCHED ANY NOTION OF CONSUMER BANKING AND MADE CONTINENTAL INTO A ONE HUNDRED PERCENT COMMERCIAL BANK A POOR MAN'S J. P. MORGAN BUT WITH A CRUMMY CREDIT RATING AND WEAK DEPOSIT GATHERING POWER MR. THEOBALD COULD COMPETE WITH THE LIKES OF MORGAN IN OFFERING EXOTIC FINANCIAL INSTRUMENTS AND BIG HUNKS OF CREDIT CONTINENTAL DID WHAT IT COULD FOR ITS EXTREMELY LOYAL CUSTOMER BASE IT HAS SOME SORT OF RELATIONSHIP WITH SEVENTY FIVE PERCENT OF THE FORTUNE ONE HUNDRED COMPANIES AND FORTY PERCENT OF THE FORTUNE FIVE HUNDRED MR. THEOBALD SAID BUT STEADILY LOST GROUND TO BIGGER BANKS NOW BANKAMERICA HOPES THAT WITH ITS FINANCIAL MUSCLE IT AND CONTINENTAL'S CLIENTS WILL DO A LOT MORE BUSINESS SOUTHERN PACIFIC RAIL CORPORATION RESTRUCTURED ITS TWENTY FIVE MILLION COMMON STOCK OFFERING AFTER THE ANTICIPATED TWO HUNDRED FORTY MILLION DOLLAR SALE OF A CALIFORNIA RAIL LINE FAILED TO CLOSE ON TIME THE COMPANY HAD PLANNED TO ISSUE FIFTEEN MILLION NEW SHARES PLUS A SECONDARY OFFERING OF ABOUT TEN MILLION SHARES TO BE SOLD BY CERTAIN SOUTHERN PACIFIC SHAREHOLDERS UNDER THE NEW PLAN ALL TWENTY FIVE MILLION SHARES IN THE OFFERING WILL BE NEW SHARES QUOTE THEY WERE COUNTING ON RECEIVING TWO HUNDRED FORTY MILLION DOLLARS FROM THE SALE OF THE ALAMEDA CORRIDOR QUOTE SAID BURTON STRAUSS JUNIOR AN ANALYST AT LEHMAN BROTHERS INCORPORATED INSTEAD THEY WILL SELL AN ADDITIONAL TEN MILLION SHARES TO RAISE AN ALTERNATIVE SOURCE OF CASH THE COMPANY NEEDS TO GO AHEAD WITH ITS PROGRAMS TO REBUILD THE RAILROAD THE SAN FRANCISCO BASED RAIL HOLDING COMPANY INSISTED IT'S NOT HAVING CASH PROBLEMS BUT THE MARKET SEEMED TO VIEW THE ANNOUNCEMENT NEGATIVELY SOUTHERN PACIFIC SHARES CLOSED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY AT TWENTY ONE DOLLARS AND FIFTY CENTS DOWN SIXTY TWO POINT FIVE CENTS SOUTHERN PACIFIC ALSO REPORTED THAT FOURTH QUARTER NET INCOME FELL TO THREE POINT NINE MILLION DOLLARS OR THREE CENTS A SHARE FROM FIFTY TWO POINT TWO MILLION DOLLARS OR FIFTY CENTS A SHARE A YEAR EARLIER THE COMPANY SAID THE LATEST RESULTS INCLUDE ADDITIONAL OPERATING EXPENSES FROM THE NINETEEN NINETY THREE MIDWEST FLOODS AND A TEN POINT FIVE MILLION DOLLAR PRETAX CHARGE TO COVER THE COSTS OF CENTRALIZING CREW DISPATCHING AND CREW CALLING AND ELIMINATION OF UNNECESSARY FACILITIES THE COMPANY SAID FOURTH QUARTER RAIL TRAFFIC WAS UP EIGHT PERCENT WHILE REVENUES ROSE FOUR POINT FOUR PERCENT TO SEVEN HUNDRED FORTY TWO POINT EIGHT MILLION DOLLARS FROM SEVEN HUNDRED ELEVEN POINT THREE MILLION DOLLARS THE COMPANY SAID ITS AVERAGE FREIGHT RATES DECLINED IN THE QUARTER AS IT MOVED MORE LOWER RATED COMMODITIES SUCH AS COAL AND CONTAINERS AND LESS HIGHER RATED SHIPMENTS OF NEW AUTOS AND AUTO PARTS SOUTHERN PACIFIC SAID FOURTH QUARTER NET ALSO WAS AFFECTED BY LOWER REAL ESTATE SALES GAINS FROM SALE OF REAL ESTATE WERE SEVEN POINT TWO MILLION DOLLARS COMPARED WITH EIGHTY SEVEN POINT EIGHT MILLION DOLLARS A YEAR EARLIER IN ANNOUNCING THE AMENDED PUBLIC OFFERING SOUTHERN PACIFIC SAID IT HAD EXPECTED TO SELL ITS TWENTY MILE RAIL LINE BETWEEN LONG BEACH AND DOWNTOWN LOS ANGELES BY JANUARY THIRTY FIRST THE TRACK WOULD HAVE BECOME THE ALAMEDA CORRIDOR WHICH IS PLANNED TO BE AN EXPEDITED RAIL ROUTE FOR SOUTHERN PACIFIC AND OTHER RAILROADS TO MOVE FREIGHT SHIPMENTS TO AND FROM THE PORTS BUT SOUTHERN PACIFIC SAID IT APPEARS THAT THE PORTS OF LONG BEACH AND LOS ANGELES WON'T COMPLETE THE PURCHASE OF THE LINE BECAUSE UNION PACIFIC CORPORATION HAS REFUSED TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH THE PORTS COVERING OPERATIONS ON THE PROPOSED RAIL FACILITY ROBERT STARZEL SOUTHERN PACIFIC'S VICE CHAIRMAN SAID THE PRESSURE IS ON THE UNION PACIFIC TO REACH AN AGREEMENT UNION PACIFIC SAID IT CONTINUES TO BARGAIN WITH THE PORTS BUT THAT PROPOSED FEES TO THE RAILROAD FOR USE OF THE LINE ARE EXCESSIVE BRIAN DUPERREAULT FORTY SIX PRESIDENT OF THIS INSURANCE CONCERN'S OVERSEAS PROPERTY CASUALTY UNIT AMERICAN INTERNATIONAL UNDERWRITERS WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE UNIT EVAN G. GREENBERG THIRTY EIGHT CHIEF EXECUTIVE OFFICER OF THE PARENT COMPANY'S A. I. G. COMPANIES IN JAPAN AND KOREA WILL RETURN TO THE U. S. AS PRESIDENT AND CHIEF OPERATING OFFICER OF AIU MR. GREENBERG REMAINS CHAIRMAN OF A. I. G. COMPANIES IN JAPAN AND KOREA RONALD J. ANDERSON AIU SENIOR VICE PRESIDENT EXTERNAL AFFAIRS WILL SUCCEED MR. GREENBERG AS PRESIDENT AND CHIEF OPERATING OFFICER OF A. I. G. COMPANIES IN JAPAN AND KOREA THE PHARMACEUTICAL INDUSTRY IS BRACING FOR AN ATTACK ON ITS PRICING POLICIES FROM SENATOR DAVID PRYOR WHO PLANS TO RELEASE A REPORT TODAY AIMED AT BUTTRESSING HIS CALL FOR STRONGER REGULATION OF THE INDUSTRY UNDER HEALTH CARE REFORM A SPOKESMAN FOR SENATOR PRYOR AN ARKANSAS DEMOCRAT SAID THE REPORT WOULD BE RELEASED AT A NEWS CONFERENCE AND WILL SHOW THAT PRESCRIPTION DRUG PRICE INCREASES LAST YEAR WERE HIGHER THAN THE INDUSTRY CLAIMS IT WILL ALSO LIST THE DRUGS AND MANUFACTURERS THAT SENATOR PRYOR SAYS LAST YEAR HAD THE HIGHEST INFLATION RATES SENATOR PRYOR SAID ON FRIDAY THAT HE WOULD RELEASE THE REPORT TODAY IN A MOVE TO FORESTALL PRICE CONTROLS UNDER HEALTH CARE REFORM EIGHTEEN MAJOR DRUG COMPANIES ACCOUNTING FOR MORE THAN TWO THIRDS OF THE U. S. MARKET PLEDGED TO HOLD PRICE INCREASES ACROSS THEIR COMBINED PRODUCT LINES AT OR BELOW THE CONSUMER PRICE INDEX LAST YEAR THEIR VOLUNTARY RESTRAINTS APPEAR TO HAVE WORKED BECAUSE THE INDUSTRY ESCAPED DIRECT PRICE CONTROLS UNDER PRESIDENT CLINTON'S PROPOSED REFORMS ALTHOUGH THE INDUSTRY ARGUES THAT PARTS OF THE PLAN WOULD INDIRECTLY REGULATE PRICES SENATOR PRYOR IN A WRITTEN STATEMENT SAID THE REPORT QUOTE PROVIDES HARD EVIDENCE THAT WE MAY NEED TO CONSIDER MORE MEANINGFUL RESTRAINTS' TO ENSURE THAT DRUG PRICE INCREASES IN THE RETAIL MARKETPLACE ARE LIMITED TO THE RATE OF INFLATION QUOTE ANTICIPATING THE REPORT THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION SAID FRIDAY THAT THE DRUG COMPANIES KEPT THEIR PROMISES AS LONG AS ENTIRE PRODUCT LINES ARE INCLUDED IN THE CALCULATION ALONG WITH ALL CATEGORIES OF CUSTOMERS THE LABOR DEPARTMENT'S PRODUCER PRICE INDEX FOR PHARMACEUTICALS LAST YEAR INCREASED THREE POINT ONE PERCENT SLIGHTLY ABOVE THE CONSUMER PRICE INDEX'S TWO POINT SEVEN PERCENT INCREASE THE REPORT BY THE SENATE SPECIAL COMMITTEE ON AGING IS BEING KEPT UNDER WRAPS BY SENATOR PRYOR THE COMMITTEE'S CHAIRMAN BUT A RESEARCHER WHO PROVIDED DATA FOR THE REPORT OFFERED A GLIMPSE OF WHAT IT MIGHT CONTAIN STEPHEN W. SCHONDELMEYER A UNIVERSITY OF MINNESOTA PROFESSOR SAID HIS ANALYSIS INCLUDED THE AVERAGE WHOLESALE PRICES OF THE TOP TWO HUNDRED DRUGS IN THE U. S. IN TERMS OF OUTPATIENT PRESCRIPTIONS WHILE DRUG PRICE INFLATION OVERALL HAS SLOWED TO THREE POINT SIX PERCENT ACCORDING TO HIS CALCULATIONS MORE THAN TWO THIRDS OF THE DRUGS IN THE TWO HUNDRED ROSE IN PRICE LAST YEAR FASTER THAN THE GENERAL INFLATION RATE ABOUT TWENTY PERCENT HAD INCREASES OF MORE THAN DOUBLE THE CONSUMER PRICE INDEX INCREASE THERE ARE CLEARLY SOME COMPANIES WHO HAVE DONE A GOOD JOB OF HOLDING THE INFLATION RATE OF THEIR PRODUCTS CLOSER TO THE OVERALL INFLATION RATE OF THE ECONOMY HE SAID BUT HE ADDED HIS DATA SHOW THAT VOLUNTARY COMPLIANCE MAY WORK FOR SOME COMPANIES FOR SOME PERIOD OF TIME BUT IT DOESN'T WORK OVERALL HIS ANALYSIS LOOKED AT A SEGMENT OF THE MARKET THAT SERVES CASH PAYING RETAIL CUSTOMERS WHO REPRESENT FORTY FIVE PERCENT TO FIFTY PERCENT OF ALL OUTPATIENT PRESCRIPTIONS DOCTOR SCHONDELMEYER SAID THE ANALYSIS DOESN'T REFLECT PRICES PAID BY HOSPITALS OR OTHER INSTITUTIONAL CUSTOMERS SENATOR PRYOR'S SPOKESMAN ADDED THAT DOCTOR SCHONDELMEYER'S DATA WERE AMONG SEVERAL SOURCES FOR THE REPORT A SPOKESMAN FOR THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION SAID THE ONLY FAIR WAY TO ASSESS DRUG COMPANIES' PRICE INCREASES IS IN THE AGGREGATE FOR ALL CUSTOMERS ACROSS ALL PRODUCTS AND WEIGHTED BY SALES DOCTOR SCHONDELMEYER CITED A THIRTEEN PERCENT PRICE INCREASE FOR ZOVIRAX A POPULAR ANTIVIRAL DRUG AS ONE OF THE HIGHEST AMONG THE TWO HUNDRED DRUGS HE EXAMINED A SPOKESMAN FOR THE DRUG'S MAKER BURROUGHS WELLCOME COMPANY A UNIT OF WELLCOME P. L. C. SAID THAT INCREASE APPLIED TO THE TWO HUNDRED MILLIGRAM CAPSULE BUT THE AVERAGE INCREASE FOR ALL SEVEN FORMULATIONS OF THE DRUG WAS SIX POINT EIGHT PERCENT THE AVERAGE WHOLESALE PRICE DOESN'T REFLECT DISCOUNTS GIVEN TO CUSTOMERS WHICH CAN BE SUBSTANTIAL BURROUGHS WELLCOME'S OVERALL PRICE INCREASE FOR ITS PRODUCTS WEIGHTED BY SALES WAS FIVE POINT ONE PERCENT IN THE U. S. LAST YEAR BUT AFTER DISCOUNTS AND REBATES THE NET PRICE INCREASE WAS THREE POINT FIVE PERCENT THE COMPANY SPOKESMAN SAID JOSEPH B. CARR SEVENTY TWO YEARS OLD WAS ELECTED A DIRECTOR OF THIS REFINER AND MARKETER OF PETROLEUM PRODUCTS BRINGING THE BOARD TO EIGHT MEMBERS MR. CARR IS CHAIRMAN OF TWO CLOSELY HELD IRISH COMPANIES RAYMOND L. MATHIASEN FIFTY YEAR OLD SENIOR VICE PRESIDENT WAS NAMED TO THE ADDITIONAL POST OF CHIEF FINANCIAL OFFICER AT THIS HEALTH CARE SERVICES CONCERN MR. MATHIASEN HAD BEEN ACTING CHIEF FINANCIAL OFFICER SINCE LAST SEPTEMBER WHEN TAYLOR JENSON FIFTY FOUR RESIGNED FROM THAT POST TO BECOME SENIOR FINANCIAL ADVISER TO THE COMPANY R. H. MACY AND COMPANY AS EXPECTED SAID IT WOULD REDUCE STAFF IN ITS SAN FRANCISCO BASED MACY'S WEST UNIT BY SEVEN HUNDRED POSITIONS OR ABOUT THREE POINT FIVE PERCENT MACY'S WHICH HAS BEEN OPERATING UNDER CHAPTER ELEVEN FEDERAL BANKRUPTCY LAW PROTECTION SINCE NINETEEN NINETY TWO HAS PERIODICALLY LAID OFF SMALL GROUPS OF EMPLOYEES BUT FRIDAY'S ANNOUNCED JOB CUTS WERE THE LARGEST SINGLE REDUCTION SO FAR AND ARE PART OF MACY'S FIVE YEAR PLAN TO LOWER EXPENSES AND RAISE OPERATING PROFIT THE FIRINGS DON'T AFFECT ANY MACY STORE SALESPEOPLE BUT REACH A WIDE RANGE OF STORE STAFFERS FROM STOCK PEOPLE AND GIFT WRAPPERS THROUGH THE EXECUTIVE RANKS ABOUT FIFTY EMPLOYEES IN THE MACY'S WEST DIVISIONAL OFFICE WILL ALSO BE LAID OFF BEFORE THE CUTBACKS MORE THAN TWENTY THOUSAND WERE EMPLOYED IN THE MACY'S WEST DIVISION WHICH INCLUDED THIRTY TWO MACY'S DEPARTMENT STORES AND TWENTY BULLOCK'S STORES IN TEXAS CALIFORNIA ARIZONA AND OTHER STATES A MACY'S SPOKESWOMAN FRIDAY SAID THE CHAIN HAS QUOTE NO CURRENT PLANS QUOTE FOR SIMILAR REDUCTIONS IN THE MACY'S EAST DIVISION MACY ALSO CONFIRMED IT WILL CLOSE THE BULLOCK'S STORE IN NORTHRIDGE CALIFORNIA THAT WAS DAMAGED IN THE LOS ANGELES EARTHQUAKE AND THAT IT PLANS TO REBUILD IT MACY SAID IT HOPES TO BE ABLE TO REHIRE MANY OF THE NORTHRIDGE EMPLOYEES WHEN THE REPLACEMENT STORE IS BUILT BUT MEANWHILE TWO HUNDRED FIFTY FULL AND PART TIME EMPLOYEES WILL BE OUT OF WORK MACY'S DECLINED TO ESTIMATE WHEN THE STORE WOULD REOPEN SEPARATELY IN A MATTER THAT COULD HAVE A BEARING ON ITS REMAINING INDEPENDENT MACY FILED A MOTION IN U. S. BANKRUPTCY COURT IN NEW YORK TO PRESERVE THE RIGHT TO SUE FEDERATED DEPARTMENT STORES INCORPORATED OVER THE CINCINNATI BASED CHAIN'S SALE OF BULLOCK'S AND I. MAGNIN STORES TO MACY SHOULD THE COURTS AWARD MACY A REFUND FROM THE NINETEEN EIGHTY EIGHT PURCHASE THE RETAILER COULD USE IT TO OFFSET CLAIMS OF FEDERATED WHICH RECENTLY BOUGHT A CHUNK OF MACY'S SECURED DEBT AND WANTS TO USE IT AS LEVERAGE TO MERGE WITH THE CHAIN IN THE MOTION FILED JANUARY TWENTY SIXTH MACY AND COMMITTEES OF ITS UNSECURED CREDITORS CLAIM THAT SINCE IT APPEARS AFTER PRELIMINARY REVIEW THAT MACY'S OVERPAID FEDERATED FOR THE I. MAGNIN AND BULLOCK'S DIVISIONS MACY'S DID NOT RECEIVE FAIR CONSIDERATION FROM FEDERATED FOR THE PAYMENT OF THE PURCHASE PRICE IN NINETEEN EIGHTY EIGHT MACY PAID ONE POINT OH FOUR BILLION DOLLARS MUCH OF IT BORROWED FOR THE CALIFORNIA BASED CHAINS DEBT FROM THE PURCHASE HELPED PUSH MACY INTO BANKRUPTCY PROCEEDINGS BUT MACY'S MOTION CLAIMS THE BULLOCK'S SLASH MAGNIN PURCHASE MAY CONSTITUTE A FRAUDULENT CONVEYANCE FEDERATED'S CLAIMS IN MACY'S BANKRUPTCY INCLUDES A SECURED FOUR HUNDRED FORTY NINE POINT THREE MILLION DOLLAR CLAIM RECENTLY BOUGHT FROM PRUDENTIAL INSURANCE COMPANY OF AMERICA AND EARLIER UNSECURED CLAIMS OF SIXTY EIGHT POINT TWO FIVE MILLION DOLLARS WITH SUCH A LARGE SECURED CLAIM FEDERATED INTENDS TO PLAY A DECIDING ROLE IN HOW MACY EMERGES FROM CHAPTER ELEVEN SHOULD MACY BE AWARDED A REFUND ON THE PURCHASE ANY CLAIM OF FEDERATED AGAINST MACY MAY BE OFFSET BY ANY DAMAGES RECOVERED BY MACY BUT MACY MAY NOT PURSUE THE MOTION FOR NOW AND IN FACT FILED THE MOTION TO PRESERVE ITS LEGAL RIGHTS WHICH WOULD HAVE EXPIRED LAST WEEK MACY SAID IT HOPED THAT AS A RESULT OF CONTINUING REVIEW OF THE BULLOCK'S SLASH MAGNIN PURCHASE AND APPROVAL OF MACY'S BANKRUPTCY LAW REORGANIZATION PLAN ALL ISSUES WILL BE RESOLVED CANADA'S WEST COAST PORTS HAVE BEEN PARALYZED BY A LONGSHOREMEN'S CONTRACT DISPUTE THE WALKOUT WHICH STARTED THURSDAY HAS HALTED MOVEMENT OF GRAIN LUMBER AND OTHER COMMODITIES AND HAS PROMPTED SOME SHIPPERS TO ORDER THEIR CONTAINER CARGO TO BE DIVERTED TO SEATTLE THE INTERNATIONAL LONGSHOREMEN'S AND WAREHOUSEMEN'S UNION CALLED THE STRIKE IN SUPPORT OF ITS WAGE DEMANDS WHICH INCLUDE AN INCREASE OF NINETY FIVE CANADIAN CENTS U. S. SEVENTY TWO CENTS AN HOUR IN THE FIRST YEAR OF A THREE YEAR CONTRACT THE CURRENT BASE RATE IS TWENTY ONE CANADIAN DOLLARS AND FORTY ONE CENTS AN HOUR THE UNION HAS BEEN WITHOUT A CONTRACT SINCE DECEMBER THIRTY FIRST NINETEEN NINETY TWO THE UNION OFFERED TO CONTINUE LOADING GRAIN AT WEST COAST PORTS TO QUOTE AVOID UNDUE HARDSHIP TO FARMERS QUOTE BUT THE BRITISH COLUMBIA MARITIME EMPLOYERS' ASSOCIATION REJECTED THE OFFER A SPOKESMAN FOR THE ASSOCIATION WHICH REPRESENTS MARITIME INDUSTRIES SAID WE EITHER MOVE ALL CARGO THAT WE HANDLE OR WE DON'T MOVE CARGO WE CAN'T BE SELECTIVE THE CANADIAN GOVERNMENT HASN'T INDICATED HOW IT INTENDS TO RESPOND TO THE WORK STOPPAGE THE MOST RECENT MAJOR WEST COAST PORT SHUTDOWN IN NINETEEN EIGHTY SIX WAS ENDED BY LEGISLATION THAT ORDERED A RETURN TO WORK AND IMPOSED A PROCEDURE FOR SETTLING THE CONTRACT DISPUTE JOHN D. CRABB FIFTY YEAR OLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS MAKER OF RECREATIONAL PRODUCTS HE SUCCEEDS TERENCE S. MALONE SIXTY THREE WHO RETIRED AS CHAIRMAN AND CHIEF EXECUTIVE SAMUEL C. JOHNSON SIXTY FIVE WHO WAS CHAIRMAN BEFORE THE OCTOBER NINETEEN NINETY TWO ELECTION OF MR. MALONE REASSUMES THE POST OF CHAIRMAN THE POST OF CHIEF OPERATING OFFICER HAS BEEN ELIMINATED THE COMPANY ALSO SAID HELEN P. JOHNSON LEIPOLD VICE PRESIDENT CONSUMER MARKETING SERVICES WORLD WIDE OF S. C. JOHNSON WAX WAS ELECTED A DIRECTOR OF THE COMPANY SUCCEEDING H. FISK JOHNSON WHO DIDN'T STAND FOR RE ELECTION WITH THE NEW DIRECTOR AND MR. MALONE'S RETIREMENT THERE ARE NOW SIX MEMBERS ON THE BOARD RANDY D. KAUTTO FORTY EIGHT WAS NAMED VICE PRESIDENT HUMAN RESOURCES OF THIS PACKAGED FOODS AND CONSUMER PRODUCTS CONCERN EFFECTIVE TOMORROW THE POST HAS BEEN VACANT SINCE APRIL HE WAS VICE PRESIDENT EMPLOYEE RELATIONS AT PHILIP MORRIS COMPANIES EDWARD R. PRINCE JUNIOR CHAIRMAN AND CHIEF EXECUTIVE OFFICER ASSUMED THE TITLES OF PRESIDENT AND CHIEF OPERATING OFFICER LARRY E. LENIG JUNIOR RESIGNED FROM THOSE POSTS TEXAS INSTRUMENTS INCORPORATED REPORTED A SEVENTY TWO PERCENT JUMP IN FOURTH QUARTER EARNINGS AMID A CONTINUING SURGE IN ITS SEMICONDUCTOR BUSINESS BUT SAID IT WILL ELIMINATE SEVEN HUNDRED JOBS IN OTHER OPERATIONS NET INCOME IN THE QUARTER TOTALED ONE HUNDRED THIRTY FOUR MILLION DOLLARS OR ONE DOLLAR AND FORTY TWO CENTS A SHARE COMPARED WITH SEVENTY EIGHT MILLION DOLLARS OR EIGHTY CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED NINETEEN PERCENT TO TWO POINT THREE SEVEN BILLION DOLLARS FROM ONE POINT NINE NINE BILLION DOLLARS LARGELY REFLECTING GAINS IN THE CHIP BUSINESS TEXAS INSTRUMENTS PREDICTED IT WILL ENJOY CONTINUED STRONG GROWTH IN SEMICONDUCTORS THE COMPANY WOULDN'T DISCLOSE HOW MUCH ITS CHIP BUSINESS GREW LAST YEAR BUT SAID IT WAS GREATER THAN AN ESTIMATED THIRTY PERCENT INCREASE IN THE WORLD WIDE SEMICONDUCTOR MARKET THE COMPANY PROJECTS THE MARKET WILL EXPAND ABOUT FIFTEEN PERCENT THIS YEAR QUOTE WE WOULD THINK THAT WE HAVE PLENTY OF ROOM TO GAIN MARKET SHARE QUOTE IN CHIPS SAID WILLIAM A. AYLESWORTH THE COMPANY'S CHIEF FINANCIAL OFFICER NOT ALL OF TEXAS INSTRUMENTS' BUSINESSES ARE BOOMING THE COMPANY'S DEFENSE ELECTRONICS BUSINESS HURT BY DECLINING MILITARY SPENDING SHRANK A FURTHER SEVEN PERCENT LAST YEAR TO ONE POINT EIGHT FOUR BILLION DOLLARS IN REVENUE MR. AYLESWORTH SAID THAT A GRADUAL DECLINE OF SOMETHING LIKE THAT IS LIKELY TO CONTINUE AS A RESULT THE COMPANY SAID NEXT MONTH IT WILL ELIMINATE FIVE HUNDRED OF THE APPROXIMATELY FOURTEEN THOUSAND JOBS IN THE DEFENSE SEGMENT OVERALL TEXAS INSTRUMENTS EMPLOYS ALMOST SIXTY THOUSAND PEOPLE THE COMPANY ALSO ANNOUNCED THAT IT WILL CUT TWO HUNDRED JOBS IN THE CONSOLIDATION OF ITS UNIT THAT MAKES CALCULATORS WITH THE UNIT THAT MAKES NOTEBOOK COMPUTERS AND LASER PRINTERS THE TWO UNITS CURRENTLY EMPLOY ABOUT TWO THOUSAND PEOPLE ABOUT HALF THE JOBS TO BE CUT ARE OUTSIDE THE U. S. THE CONSOLIDATION PLAN RESULTED IN A TWENTY THREE MILLION DOLLAR PRETAX CHARGE AGAINST FOURTH QUARTER EARNINGS THE COMPANY'S REVENUE FROM PATENT ROYALTIES JUMPED THIRTY THREE PERCENT LAST YEAR TO FIVE HUNDRED TWENTY ONE MILLION DOLLARS LARGELY BECAUSE OF NEW AGREEMENTS WITH PERSONAL COMPUTER MAKERS COVERING TEXAS INSTRUMENTS' COMPUTER SYSTEMS PATENTS AND INCREASED PRODUCTION BY COMPANIES HOLDING LICENSES UNDER TEXAS INSTRUMENTS' SEMICONDUCTOR PATENTS THE COMPANY SAID THE INCREASED ROYALTY REVENUE ALLOWED IT TO RAISE SPENDING ON RESEARCH AND DEVELOPMENT BY TWENTY SIX PERCENT LAST YEAR TO FIVE HUNDRED NINETY MILLION DOLLARS TEXAS INSTRUMENTS SAID IT EXPECTS THAT FIGURE TO RISE TO ABOUT SEVEN HUNDRED MILLION DOLLARS THIS YEAR FOR ALL OF NINETEEN NINETY THREE PROFIT CLIMBED NINETY ONE PERCENT TO FOUR HUNDRED SEVENTY TWO MILLION DOLLARS OR FIVE DOLLARS AND THREE CENTS A SHARE FROM TWO HUNDRED FORTY SEVEN MILLION DOLLARS OR TWO DOLLARS AND FIFTY CENTS A SHARE REVENUE WAS UP FIFTEEN PERCENT TO EIGHT POINT FIVE TWO BILLION DOLLARS FROM SEVEN POINT FOUR FOUR BILLION DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY TEXAS INSTRUMENTS' STOCK ROSE TWELVE POINT FIVE CENTS A SHARE TO CLOSE AT SEVENTY ONE DOLLARS MOBIL CORPORATION ANNOUNCED THAT LUCIO A. NOTO WILL TAKE OVER AS CHIEF EXECUTIVE WHEN ALLEN E. MURRAY RETIRES FROM THAT POST AT THE END OF FEBRUARY INDIVIDUALS FAMILIAR WITH MR. NOTO FIFTY FIVE YEARS OLD SAY MOBIL'S PROFILE IS LIKELY TO BECOME MORE PROMINENT UNDER HIM AS CHIEF FINANCIAL OFFICER A POST HE HELD FOR SEVERAL YEARS UNTIL JUST LAST YEAR MR. NOTO MET WIDELY WITH ANALYSTS AND INVESTORS AND EVEN AFTER HIS APPOINTMENT AS PRESIDENT AND CHIEF OPERATING OFFICER LAST YEAR HE REMAINED ACCESSIBLE KNOWN AS LOU BY FRIENDS AND OTHER EXECUTIVES WITHIN THE COMPANY HE IS DESCRIBED BY PEOPLE WHO HAVE MET HIM AS QUOTE OUTGOING AMIABLE AND ENERGETIC QUOTE HE FOCUSES ON DETAILS AND IS SAID TO KNOW ALMOST EVERY FACET OF MOBIL'S BUSINESSES HE EVEN WENT TO THE EXTREME AT ONE POINT OF GOING TO WORK AT FIVE THIRTY A. M. TO OBSERVE THE WORKINGS OF AN OUTSIDE SERVICE THAT GATHERS NEWSPAPER CLIPPINGS CONCERNING MOBIL SAID AN INDIVIDUAL FAMILIAR WITH THAT VISIT MR. MURRAY WHO BECAME CHIEF EXECUTIVE IN NINETEEN EIGHTY SIX HAS RUN MOBIL ONE OF THE WORLD'S LARGEST OIL COMPANIES ON A LOW KEY BASIS ALMOST SHUNNING PUBLICITY MR. NOTO'S APPOINTMENT WASN'T UNEXPECTED WHEN HE WAS ELECTED PRESIDENT LAST YEAR IT WAS ASSUMED THEN THAT THE BOARD OF DIRECTORS OF WHICH HE IS A MEMBER HAD CHOSEN HIM TO SUCCEED MR. MURRAY UPON HIS RETIREMENT UNTIL THAT POINT HOWEVER MR. NOTO WAS ONE OF POSSIBLY THREE CONTENDERS FOR THE JOB MOBIL OBSERVERS SAY HE WAS UP AGAINST TWO OTHER DIRECTORS PAUL J. HOENMANS AND EUGENE RENNA WHO ALSO ARE TOP EXECUTIVES AT THE COMPANY IT APPEARS THAT MR. NOTO LIKE MR. MURRAY WILL CONSOLIDATE MANAGEMENT POWER UNDER HIMSELF WHEN HE TAKES ON THE TOP SPOT MARCH FIRST MR. MURRAY RETAINED THE TITLES OF CHIEF EXECUTIVE OFFICER CHAIRMAN PRESIDENT AND CHIEF OPERATING OFFICER UNTIL HE PEELED OFF THE LAST TWO UPON MR. NOTO'S ELECTION TO THOSE POSTS A COMPANY SPOKESMAN SAID MR. NOTO WILL ASSUME ALL FOUR TITLES AS WELL MOBIL HAS BEEN SLOWLY RESTRUCTURING ITSELF DURING MR. MURRAY'S TENURE UNDER HIS GUIDANCE MOBIL'S TOTAL DEBT DECLINED BY THIRTY PERCENT TO EIGHT BILLION DOLLARS ANNUAL DIVIDENDS ROSE BY FORTY EIGHT PERCENT TO THREE DOLLARS AND TWENTY FIVE CENTS AND A FLABBY REFINING AND MARKETING BUSINESS WAS WHIPPED INTO SHAPE IT IS THOUGHT THAT MR. NOTO WHO HAS BEEN AT THE COMPANY FOR THIRTY ONE YEARS WILL KEEP THE COMPANY FOCUSED ON ITS STRATEGY OF COST CUTTING WHILE CONCENTRATING ON THE CORE OIL AND CHEMICALS BUSINESSES BUT ANALYSTS SAY HE WILL LIKELY BRING AN INCREASED SENSE OF URGENCY TO THE CHALLENGE OF KEEPING MOBIL A HIGHLY PROFITABLE COMPANY DURING COMING YEARS WHEN OIL PRICES ARE EXPECTED TO REMAIN DEPRESSED MR. NOTO HAS MUCH MORE OF A FINANCIAL ORIENTATION THAN THE TYPICAL OIL COMPANY CHIEF EXECUTIVE SAYS CONSTANTINE FLIAKOS AN ANALYST FOR MERRILL LYNCH AND COMPANY AND FORMER MOBIL EXECUTIVE WHO KNOWS MR. NOTO INDEED MR. NOTO'S BACKGROUND IS ECLECTIC FLUENT IN ITALIAN HE HAS A DEGREE IN PHYSICS FROM THE UNIVERSITY OF NOTRE DAME AS WELL AS A MASTER'S DEGREE IN BUSINESS ADMINISTRATION FROM CORNELL UNIVERSITY HE HELD MAJOR POSITIONS IN MARKETING AND PLANNING FOR MOBIL WORKING IN THE DIVERSE LOCATIONS OF JAPAN AND ITALY HE ALSO LIVED FOR A NUMBER OF YEARS IN JIDDA SAUDI ARABIA PEOPLE FAMILIAR WITH HIS CAREER SAY HE WAS INSTRUMENTAL IN STRIKING MANY OF THE DEALS WITH THE SAUDIS THAT HAVE PROVEN TO BE THE ANCHOR OF MOBIL'S BUSINESS OPERATIONS IN THAT REGION THE COMPANY HAS ABOUT TEN JOINT VENTURES WITH THE SAUDIS METALL MINING CORPORATION SEEKING CONTROL OF A LARGE COPPER AND GOLD DEPOSIT IN ARGENTINA SAID IT PLANS A TAKEOVER BID WITH AN INDICATED VALUE AS HIGH AS ONE HUNDRED EIGHTY FOUR MILLION DOLLARS FOR ALL THE SHARES OF INTERNATIONAL MUSTO EXPLORATIONS LIMITED BUT INTERNATIONAL MUSTO SAID IT HAD RECEIVED WHAT IT CONSIDERED A SUPERIOR PROPOSAL FROM ANOTHER BIG MINING COMPANY TO FORM A JOINT VENTURE TO DEVELOP THE MINE IT DIDN'T IDENTIFY THE OTHER MINING COMPANY METALL IS FIFTY ONE PERCENT OWNED BY GERMANY'S FINANCIALLY TROUBLED METALLGESELLSCHAFT A. G. WHICH HAS SAID IT INTENDS TO SELL ITS STAKE IN THE CANADIAN MINING COMPANY AS PART OF THE PARENT COMPANY'S FINANCIAL RESTRUCTURING THE LUNDIN FAMILY OF GENEVA OWNS ABOUT THIRTY SEVEN PERCENT OF INTERNATIONAL MUSTO WHICH IS BASED IN VANCOUVER BRITISH COLUMBIA TORONTO BASED METALL SAID IT PLANS TO OFFER SIXTEEN POINT TWO FIVE CANADIAN DOLLARS TWELVE DOLLARS AND TWENTY SIX CENTS A SHARE FOR INTERNATIONAL MUSTO ON CONDITION THAT AT LEAST FIFTY POINT ONE PERCENT OF THE SHARES ARE TENDERED UNDER ITS BID AND THAT MUSTO DOESN'T AGREE TO A JOINT VENTURE SALE OR OTHER AGREEMENT THAT WOULD RELINQUISH CONTROL OF THE BAJO DE LA ALUMBRERA PROPERTY IN NORTHWEST ARGENTINA IT SAID THE SHARES WOULD BE PURCHASED FOR CASH OR CONVERTIBLE PREFERRED SHARES OF METALL ON FRIDAY INTERNATIONAL MUSTO SHARES ROSE FOUR CANADIAN DOLLARS AND FIFTY CENTS TO CLOSE AT SIXTEEN CANADIAN DOLLARS AND TWENTY FIVE CENTS ON THE TORONTO STOCK EXCHANGE THE MINING EXPLORATION COMPANY HAS ABOUT FIFTEEN MILLION SHARES OUTSTANDING MUSTO SAID IN NOVEMBER THAT IT WOULD COST ABOUT FIVE HUNDRED FIFTY MILLION DOLLARS TO DEVELOP THE ALUMBRERA DEPOSIT WHICH IT SAID HAS MINEABLE RESERVES OF FIVE POINT EIGHT BILLION POUNDS OF COPPER AND TEN MILLION OUNCES OF GOLD THE COMPANY SAID FRIDAY THAT IT HAD RECEIVED FOUR PROPOSALS TO SELL OR JOINTLY DEVELOP THE DEPOSIT IT SAID METALL'S QUOTE WASN'T THE BEST QUOTE OF THESE PLANS AND THAT IT WAS NEGOTIATING A LETTER OF INTENT WITH ANOTHER COMPANY FOR A JOINT VENTURE MUSTO ADDED THAT IT WON'T IDENTIFY THE OTHER COMPANY UNTIL THE LETTER HAS BEEN SIGNED AND THE PARTNERS HAVE MET WITH ARGENTINE OFFICIALS JON A. DELUCA THIRTY YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER A NEW POSITION AT THIS INVESTMENT MANAGEMENT COMPANY MR. DELUCA WAS A SENIOR MANAGER WITH A COOPERS AND LYBRAND GROUP SAMUEL V. MILLER JUNIOR FORTY EIGHT YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT OF THE FINANCIAL SERVICES COMPANY EFFECTIVE MARCH FIRST MR. MILLER HAS BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AMERICAN EXPRESS COMPANY'S AMEX LIFE ASSURANCE COMPANY IN ADDITION JEROME T. FADDEN THIRTY SIX FORMERLY A SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE GULF INSURANCE GROUP UNIT WAS NAMED TREASURER OF THE COMPANY HE SUCCEEDS JAY FISHMAN FORTY ONE WHO BECOMES CHIEF FINANCIAL OFFICER OF THE TRAVELERS INSURANCE COMPANIES UNIT MR. FISHMAN CONTINUES AS SENIOR VICE PRESIDENT OF THE PARENT SEPARATELY TRAVELERS' SMITH BARNEY SHEARSON UNIT NAMED BRENDAN D. BOYLE THIRTY NINE DIRECTOR OF SALES AND MARKETING FOR ITS MUTUAL FUNDS SUCCEEDING ROBERT LEO WHO LEFT THE COMPANY TO BECOME DIRECTOR OF BROKER DEALER SALES AT MASSACHUSETTS FINANCIAL SERVICES IN BOSTON MR. BOYLE IS A MANAGING DIRECTOR AT THE COMPANY IT'S HARD TO BELIEVE THAT IN THIS CULTURE OF CONFESSION AND COMPLAINT THE PERSONAL ESSAY HAS NOT RECEIVED MORE OFFICIAL RECOGNITION PHILLIP LOPATE HAS SET OUT TO REMEDY THAT INJUSTICE WITH A VAST ANTHOLOGY THAT TRACES THE TRADITION FROM SENECA ONWARD QUOTE THE ART OF THE PERSONAL ESSAY AN ANTHOLOGY FROM THE CLASSICAL ERA TO THE PRESENT QUOTE ANCHOR BOOKS SEVEN HUNDRED SEVENTY SEVEN PAGES THIRTY DOLLARS IS SO PACKED WITH PERSONALITY AND BEGUILING FIRST PERSON PROSE THAT AFTER READING THE SEVENTY OR SO PIECES IN THE COLLECTION I HAD TO FIGHT THE URGE TO BEGIN THIS REVIEW WITH A STORY FROM CHILDHOOD THE APPEALING ASSUMPTION BEHIND THE PERSONAL ESSAY AND THIS ANTHOLOGY IS THAT WHEN WRITERS SPEAK OF THEMSELVES THEY SPEAK A UNIVERSAL LANGUAGE SENECA'S PLAYS MAY SEEM MANNERED AND REMOTE TO MODERN READERS BUT WE ALL CAN UNDERSTAND HIM WHEN HE COMPLAINS ABOUT HIS ASTHMA OR DESCRIBES THE NOISY DISTRACTIONS OF LIVING ABOVE A BATH HOUSE MEDIEVAL JAPANESE POETRY MAY REQUIRE SCHOLARLY EXPLICATION BUT WHEN SEI SHONAGON THE TENTH CENTURY COURT LADY IN HER LIST OF HATEFUL THINGS WRITES ONE HAS BEEN FOOLISH ENOUGH TO INVITE A MAN TO SPEND THE NIGHT IN AN UNSUITABLE PLACE AND THEN HE STARTS SNORING WE HEAR A VOICE THAT SOUNDS STRANGELY MODERN AS MONTAIGNE THE GREAT GRANDDADDY OF SELF REVELATION WROTE AND ON THE LOFTIEST THRONE IN THE WORLD WE ARE STILL SITTING ONLY ON OUR OWN RUMP MR. LOPATE FOLLOWS THE PERSONAL ESSAY FROM ITS ROOTS IN ANTIQUITY WHEN FIRST PERSON PIONEERS LIKE PLUTARCH WROTE LETTERS TO SMUGGLE THEIR PERSONALITIES INTO PRINT THROUGH MONTAIGNE AND INTO ENGLAND WHERE WRITERS LIKE ADDISON AND STEELE BROUGHT THE PERSONAL ESSAY TO THE NEWSPAPER LONG BEFORE TOM WOLFE COOKED UP THE NEW JOURNALISM IN OUR OWN AGE A LARGE CHUNK OF THE BOOK IS DEVOTED TO AMERICA AND THERE IS A GENEROUS SELECTION FROM ABROAD INCLUDING A CHILLING ACCOUNT BY IVAN TURGENEV OF THE BEHEADING OF A MURDERER IN PARIS AND A LONG EXQUISITE MEDITATION BY THE JAPANESE NOVELIST JUNICHIRO TANIZAKI IN PRAISE OF SHADOWS IN WHICH THE WRITER LAMENTS THE DISAPPEARANCE OF THE MUTED CHARMS OF JAPANESE CULTURE UNDER THE HARSH LIGHT OF THE WEST WHILE INDIVIDUAL ESSAYS ARE UNFORTUNATELY UNDATED EACH AUTHOR IS INTRODUCED BY A BRIEF INFORMATIVE PASSAGE ESSAYS ARE GROUPED NOT ONLY BY BROAD CATEGORIES LIKE THE RISE OF THE ENGLISH ESSAY AND THE AMERICAN SCENE BUT IN A SECOND TABLE BY THEMES LIKE AMBITION CITY LIFE AND FOOD BUT DESPITE THE BOOK'S SCHOLARLY FORMAT IT IS CLEAR THAT MR. LOPATE WHO HAS PUBLISHED TWO COLLECTIONS OF HIS OWN PERSONAL ESSAYS HAS FOLLOWED THE CREDO OF THE GENRE HE HAS CHOSEN WRITERS HE LIKES THIS IS A GOOD BOOK FOR RESTLESS READERS WRITTEN BY A RESTLESS AND UNSYSTEMATIC BUNCH OF WRITERS WHO OFTEN CHANGE THE TOPIC MIDWAY THROUGH QUOTE CLASSICAL AUTHORS WHEN IT SUITS THEM AND QUOTE THEMSELVES WHEN IT DOESN'T MANY OF THESE WRITERS SEEM LITERALLY UNABLE TO SIT STILL AND IT'S NOT SURPRISING HOW MANY TAKE TRAVEL AS THEIR SUBJECT QUOTE ON GOING ON A JOURNEY QUOTE BY WILLIAM HAZLITT QUOTE STREET HAUNTING QUOTE BY VIRGINIA WOOLF QUOTE GOING OUT FOR A WALK QUOTE BY MAX BEERBOHM WHO CONFESSES CRANKILY QUOTE IT IS A FACT THAT NOT ONCE IN ALL MY LIFE HAVE I GONE OUT FOR A WALK I HAVE BEEN TAKEN OUT FOR WALKS BUT THAT IS ANOTHER MATTER THIS IS THE KIND OF ANTHOLOGY THAT WHILE PERFECT FOR THE CLASSROOM IT EVEN FULFILLS THE MULTICULTURAL CRITERIA OF MODERN CURRICULA BELONGS AS WELL IN A WRITER'S WORKSHOP IT IS FULL OF REMINDERS OF THE PLEASURES AND PERILS OF THE CRAFT FROM CARLOS FUENTES'S HOW I STARTED TO WRITE TO F. SCOTT FITZGERALD'S DARK CONFESSION OF LITERARY AND EMOTIONAL BREAKDOWN THE CRACK UP FRANK O'CONNOR CALLED HIS STUDY OF THE SHORT STORY THE LONELY VOICE AND THE SAME TITLE COULD SERVE FOR THIS COLLECTION FOR NO MATTER HOW CHEERFUL OR GARRULOUS THE WRITERS IN THIS ANTHOLOGY MAY SEEM THE SHEER SOLITUDE INVOLVED IN WRITING IS FELT IN EVERY I PERSONAL ESSAYISTS ARE LIKE ONLY CHILDREN MAKING THE MOST OF WHAT IS AROUND THEM SEE M. F. K. FISHER ON THE POTATO CHIP CHARLES LAMB ON EARS ROBERT BENCHLEY ON HIS OWN FACE G. K. CHESTERTON ON A PIECE OF CHALK THESE WRITERS HAVE AN UNCANNY TALENT FOR DISTILLING THEIR ARTISTRY INTO A SMALL SPACE AND A FEW PAGES IS ENOUGH TO GIVE ONE A LASTING TASTE OF THE BRUSQUE SEDUCTIONS OF HAZLITT THE ASSERTIVE MODESTY OF E. B. WHITE THE REFINED RAGE OF JAMES BALDWIN READING WOOLF'S THREE PAGE ESSAY THE DEATH OF THE MOTH IS LIKE SWALLOWING ALL HER BOOKS IN A SINGLE PILL THE LAST TEN OR SO ESSAYS IN THE COLLECTION REPRESENT THE WORK OF CONTEMPORARY WRITERS AMONG THEM ADRIENNE RICH AND RICHARD RODRIGUEZ PERHAPS BECAUSE THEY ARE CLOSER TO US THEY SEEM EASIER TO QUARREL WITH AS FINAL STATEMENTS IN A BOOK SO FILLED WITH FINE WRITING NOT THAT THERE ISN'T MUCH TO ADMIRE HERE INCLUDING MR. LOPATE'S OWN POIGNANTLY REVEALING AGAINST JOIE DE VIVRE AND JOAN DIDION'S GOODBYE TO ALL THAT ANTHOLOGIES HELP CREATE GENRES BEYOND THE INDIVIDUAL ESSAYS MR. LOPATE HAS GIVEN US A GENRE PERFECTLY ADAPTED TO OUR FRACTURED SKEPTICAL CONFESSIONAL AGE MR. ROSEN IS ASSOCIATE EDITOR OF THE FORWARD LEHMAN BROTHERS INCORPORATED CAPEL CURE MYERS LIMITED AND INVESCO P. L. C. ARE CLOSE TO SETTLING FOR ABOUT THIRTY MILLION POUNDS FORTY FIVE MILLION DOLLARS A LAWSUIT CONCERNING THEIR ALLEGED ROLE IN THE FALL OF THE LATE BRITISH PUBLISHER ROBERT MAXWELL'S EMPIRE THE PROPOSED SETTLEMENT WHICH TWO PEOPLE SAID MAY BE ANNOUNCED TODAY WOULD WIND UP A TWO HUNDRED MILLION POUND CLAIM AGAINST THE FINANCIAL COMPANIES BY TRUSTEES OF THE EMPLOYEE PENSION FUND OF MIRROR GROUP P. L. C. A FORMER MAXWELL COMPANY AFTER MR. MAXWELL'S NINETEEN NINETY TWO DEATH BRITISH PROSECUTORS CHARGED THAT HE HAD PLUNDERED ABOUT THREE HUNDRED MILLION POUNDS FROM HIS COMPANIES' PENSION FUNDS IN AN UNSUCCESSFUL ATTEMPT TO KEEP HIS INDEBTED EMPIRE AFLOAT THE PENSION FUND LAWSUIT ACCUSED THE THREE COMPANIES OF PARTICIPATING IN IMPROPER SECURITIES TRANSACTIONS ORDERED BY MR. MAXWELL AND OF FAILING TO BLOW THE WHISTLE ON HIS ILLEGAL ACTIVITIES ALL THREE HAVE DENIED THE CHARGES ONE PERSON WHO DECLINED TO BE NAMED SAID THE THIRTY MILLION POUND PAYMENT WOULD BE SPLIT NEARLY EVENLY AMONG THE THREE DEFENDANTS SUNDAY NIGHT A SPOKESWOMAN FOR LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS COMPANY DECLINED TO COMMENT BUT CONFIRMED THAT SETTLEMENT QUOTE DISCUSSIONS ARE GOING ON QUOTE IN ANTICIPATION OF TODAY'S SCHEDULED START OF THE TRIAL IN LONDON SPOKESMEN FOR CAPEL CURE MYERS AND INVESCO ALSO DECLINED TO COMMENT ALICE T. KANE FORTY SIX YEARS OLD WAS NAMED AN EXECUTIVE VICE PRESIDENT ASSET MANAGEMENT AND INVESTMENT PRODUCTS OPERATIONS SHE SUCCEEDS THOMAS P. O'CONNOR FORTY NINE WHO SAID HE IS RETIRING IN JUNE MS. KANE A MEMBER OF THE EXECUTIVE MANAGEMENT COMMITTEE REMAINS GENERAL COUNSEL FOR THE COMPANY SEPARATELY SENIOR VICE PRESIDENTS GEORGE J. TRAPP AND FREDERICK SIEVERT BOTH FORTY SIX WERE NAMED TO THE EXECUTIVE MANAGEMENT COMMITTEE ALSO JEFFERSON C. BOYCE THIRTY SIX WAS NAMED A SENIOR VICE PRESIDENT RESPONSIBLE FOR THE MUTUAL FUNDS AND STRUCTURED FINANCE DEPARTMENTS AND THE NYLIFE SECURITIES DIVISION MR. BOYCE HAS BEEN A VICE PRESIDENT IN THE COMPANY'S PENSION DEPARTMENT MICHAEL GALLO THIRTY NINE WAS PROMOTED TO SENIOR VICE PRESIDENT RESPONSIBLE FOR THE NORTHEASTERN AGENCIES HE HAD BEEN VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER FOR INDIVIDUAL OPERATIONS A FIREBRAND INDIAN LAWMAKER THREATENED COCA COLA COMPANY AND PEPSICO INCORPORATED WITH PICKET LINES IN FRONT OF BOTTLING PLANTS AND RETAILERS UNLESS THE TWO BEVERAGE COMPANIES QUIT THE COUNTRY BY THE END OF FEBRUARY AT A NEWS CONFERENCE FRIDAY PARLIAMENT MEMBER GEORGE FERNANDES CALLED THE COMPANIES QUOTE THE ADVANCE GUARD OF AMERICAN CAPITALISM IN ITS DESIGN TO TAKE OVER THE WORLD QUOTE WHEN HE WAS INDUSTRY MINISTER IN NINETEEN SEVENTY SEVEN MR. FERNANDES THREW COCA COLA OUT OF INDIA WHEN IT REFUSED TO RELINQUISH SIXTY PERCENT OF ITS STOCK TO LOCAL INVESTORS OR DISCLOSE ITS SECRET FORMULA NOW HOWEVER HIS PARTY DOESN'T CONTROL THE GOVERNMENT AND THE CURRENT GOVERNMENT FAVORS FOREIGN INVESTMENT ATLANTA BASED COCA COLA RETURNED TO INDIA IN OCTOBER BUYING OUT INDIA'S LARGEST SOFT DRINK PRODUCER PEPSI CAME HERE IN NINETEEN NINETY TWO AFTER THE GOVERNMENT BEGAN OPENING ITS SHELTERED ECONOMY THE THREATS DIDN'T SEEM TO BOTHER THE TWO BEVERAGE COMPANIES WE WILL CARRY ON WITH OUR BUSINESS WE ARE HERE WITH THE PERMISSION OF THE GOVERNMENT OF INDIA SAID P. M. SINHA MANAGING DIRECTOR OF PEPSI'S INDIA OPERATIONS ADDING SUCH DEMONSTRATIONS WON'T AFFECT OUR SALES THEY HAVE TRIED SIMILAR THINGS AGAINST NESTLE AND UNILEVER AND IT HASN'T WORKED RICHARD A. BERTAGNA FIFTY NINE YEAR OLD PRESIDENT OF HUGHES AVICOM INTERNATIONAL INCORPORATED WAS ELECTED CHAIRMAN OF THAT UNIT LENARD STUESSEL FIFTY EIGHT SUCCEEDS MR. BERTAGNA AS PRESIDENT OF THE GLENDORA CALIFORNIA COMPANY WHICH IS INVOLVED IN INTERACTIVE PASSENGER COMMUNICATIONS AND ENTERTAINMENT SYSTEMS FOR THE COMMERCIAL AIRLINE INDUSTRY MR. STUESSEL PREVIOUSLY WAS DIRECTOR OPERATIONS WITH HUGHES MISSILE SYSTEMS COMPANY BOTH COMPANIES ARE UNITS OF G. M. HUGHES ELECTRONICS ITSELF A G. M. UNIT W. JAMES WHITTLE FORTY ONE WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MANAGEMENT AND CONTROL SYSTEMS MAKER MR. WHITTLE FORMERLY VICE PRESIDENT CORPORATE CONTROLLER SUCCEEDS MICHAEL D. STASHOWER SIXTY SEVEN WHO IS RETIRING BUT REMAINS A DIRECTOR ALSO MICHAEL RUGGIERI FORTY TWO WAS NAMED VICE PRESIDENT STRATEGIC MARKETING A NEW POST MR. RUGGIERI WAS VICE PRESIDENT OF CUSTOMER SERVICE OPPOSITION IS BUILDING AMONG BIG CITY MAYORS TO A PROPOSAL DESIGNED TO END THE USE OF POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS TO SECURE MUNICIPAL BOND BUSINESS QUOTE IT'S A SERIOUS CONCERN FOR ALL OF US QUOTE SAID CHICAGO MAYOR RICHARD DALEY AT A MEETING OF THE U. S. CONFERENCE OF MAYORS HE AND OTHER MAYORS QUESTIONED THE PROPOSAL'S FAIRNESS THE PROPOSED RULE WOULD BAR A BOND DEALER FROM DOING BUSINESS WITH A BOND ISSUING JURISDICTION WITHIN TWO YEARS OF WHEN THE DEALERS ITS POLITICAL ACTION COMMITTEE OR ITS MUNICIPAL FINANCE PROFESSIONALS MAKE A POLITICAL CONTRIBUTION TO AN OFFICIAL OF THE JURISDICTION THE RULE WAS FASHIONED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD AND IS PENDING BEFORE THE SECURITIES AND EXCHANGE COMMISSION WHICH MUST APPROVE IT BEFORE IT TAKES EFFECT THE S. E. C. HAS INVITED COMMENTS BY FEBRUARY ELEVENTH THE MAYORS' CONFERENCE UNTIL NOW HAS BEEN SILENT ON THE PROPOSAL BUT JERRY ABRAMSON MAYOR OF LOUISVILLE KEN. AND PRESIDENT OF THE U. S. CONFERENCE OF MAYORS SAID MAYORS WILL REGISTER THEIR CONCERNS WITH S. E. C. CHAIRMAN ARTHUR LEVITT AND PROBABLY THE WHITE HOUSE A DRAFT MAYORAL STATEMENT ON THE BOND RULE DEPICTS THE PROPOSAL AS INHERENTLY UNFAIR TO STATE AND LOCAL OFFICIALS PARTICULARLY TO THOSE WHO CHALLENGE CONGRESSIONAL INCUMBENTS PENN AMERICA GROUP INCORPORATED HATBORO PENNSYLVANIA THIS COMMERCIAL AND AUTO INSURER NAMED THREE DIRECTORS EXPANDING THE BOARD TO NINE MEMBERS DAVID P. COHEN PRESIDENT AND FOUNDER OF ATHENA CAPITAL MANAGEMENT LAWRENCE J. SCHOENBERG RETIRED CHIEF EXECUTIVE OFFICER OF A. G. S. COMPUTERS INCORPORATED AND M. MOSHE PORAT CHAIRMAN OF THE RISK MANAGEMENT AND INSURANCE DEPARTMENT AT TEMPLE UNIVERSITY SCHOOL OF BUSINESS AND MANAGEMENT SUNCOR INCORPORATED SAID IT PLANS TO ISSUE ONE HUNDRED MILLION CANADIAN DOLLARS SEVENTY FIVE POINT SIX MILLION U. S. DOLLARS OF TEN YEAR UNSECURED DEBENTURES THE ISSUE IS EXPECTED TO BE COMPLETED IN THE FIRST QUARTER AND PROCEEDS WILL BE USED TO REDUCE BANK DEBT SUNCOR SAID TERMS HAVEN'T BEEN SET LEAD UNDERWRITER IS SCOTIAMCLEOD INCORPORATED A TORONTO INVESTMENT DEALER SUNCOR IS A TORONTO BASED OIL AND NATURAL GAS PRODUCTION REFINING AND MARKETING CONCERN HUNGARY'S TWO PRIVATIZATION AGENCIES WILL BE MERGED IN A MOVE TO ACCELERATE THE SALE OF REMAINING STATE ASSETS ACCORDING TO PRIVATIZATION OFFICIALS THE OVERHAUL OF THE STATE PROPERTY AGENCY AND ITS SISTER ORGANIZATION THE STATE ASSET HOLDING AGENCY OR AVRT COMES AS THE PRIVATIZATION EFFORT ENTERS ITS FINAL PHASE BEFORE A GENERAL ELECTION SCHEDULED FOR MAY IT ALSO OCCURS AMID ATTEMPTS BY THE GOVERNMENT TO SPUR DOMESTIC SHARE OWNERSHIP THROUGH INCENTIVES AND EASY CREDIT TERMS OFFICIALS FORECAST THAT THE REORGANIZATION WILL LEAD TO QUICKER SALES IN THE FIRST HALF OF THE YEAR OF STATE COMPANIES CONSIDERED TO BE THE LAST OF HUNGARY'S CROWN JEWELS SUCH AS UTILITIES THE OIL AND GAS COMPANY PHARMACEUTICAL MANUFACTURERS AND SEVERAL BANKS ALL OF WHICH ARE UNDER AVRT CONTROL IT ALSO WILL ALLOW ASSETS FROM THESE COMPANIES TO BE EASILY MOVED INTO A SOON TO BE LAUNCHED SMALL INVESTORS PROGRAM WHICH IS AIMED AT ENCOURAGING HUNGARIAN PARTICIPATION IN PRIVATIZATION AND OTHER QUOTE PEOPLE'S CAPITALISM QUOTE PROJECTS SUCH AS SHARE ISSUES ON THE BUDAPEST STOCK EXCHANGE OBSERVERS SAY CONSOLIDATION WAS INEVITABLE IN LIGHT OF RECENT LEGAL AND POLICY SQUABBLES BETWEEN THE TWO AGENCIES ONE WHICH INVOLVED WHO OWNS AND HAS THE RIGHT TO SELL THE STATE ELECTRICITY UTILITY CALLED INTO QUESTION WHY TWO SEPARATE ORGANIZATIONS EXIST THE AVRT WHICH WAS SPUN OFF FROM THE COMPANY IN NINETEEN NINETY TWO IS RESPONSIBLE FOR PARTIALLY PRIVATIZING STRATEGIC STATE COMPANIES AND MANAGING WHAT REMAINS THE COMPANY SELLS OFF STATE ASSETS IN THEIR ENTIRETY BOTH AGENCIES ARE IN FACT IN THE DOLDRUMS EXCEPT FOR THE ONE SPECTACULAR EIGHT HUNDRED SEVENTY FIVE MILLION DOLLAR SALE OF THIRTY PERCENT OF THE TELEPHONE COMPANY LATE LAST YEAR TO A GERMAN U. S. CONSORTIUM THE AVRT HAS LAGGED BEHIND THE COMPANY AND CURRENTLY HOLDS ONE HUNDRED SIXTY TWO COMPANIES VALUED AT AN ESTIMATED ONE POINT FOUR TRILLION FORINTS THIRTEEN POINT SEVEN TWO BILLION DOLLARS YET THE COMPANY ALSO IS FACING A SLOWDOWN IN HARD CURRENCY CASH SALES AFTER AN IMPRESSIVE START LARGELY BECAUSE IT IS RUNNING OUT OF HOT PROPERTIES FROM A TOTAL OF ABOUT TWO THOUSAND COMPANIES WHEN IT BEGAN OPERATIONS ALMOST FOUR YEARS AGO THE COMPANY'S PORTFOLIO HAS DWINDLED TO SEVEN HUNDRED SIXTY FOUR FIRMS VALUED AT FOUR HUNDRED THIRTY BILLION FORINTS MANY ARE DEBT RIDDEN AND NEED COSTLY RESTRUCTURING BEFORE BUYERS CAN BE FOUND WITH SPRING RETAIL ORDER TRENDS STILL SLUGGISH LIZ CLAIBORNE INCORPORATED DOESN'T EXPECT ANY SIGNIFICANT PICKUP IN ITS BUSINESS IN THE FIRST HALF QUOTE WE DON'T SEE OURSELVES BREAKING OUT OF THE MALAISE THAT HIT US IN MID NINETEEN NINETY THREE UNTIL THE THIRD QUARTER QUOTE JEROME CHAZEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW BUT THE REBOUND IN THE SECOND HALF SHOULD PROVIDE AN IMPROVEMENT IN EARNINGS FOR ALL OF NINETEEN NINETY FOUR COMPARED WITH NINETEEN NINETY THREE HE SAID CLAIBORNE PLANS TO RELEASE ITS FOURTH QUARTER AND FULL YEAR RESULTS FEBRUARY FOURTEENTH MR. CHAZEN CONTINUES TO STICK BY THE APPAREL COMPANY'S PROJECTIONS THAT NINETEEN NINETY THREE NET INCOME WAS ABOUT FORTY PERCENT LOWER THAN NINETEEN NINETY TWO'S TWO HUNDRED EIGHTEEN POINT EIGHT MILLION DOLLARS OR TWO DOLLARS AND SIXTY ONE CENTS A SHARE ON SALES OF TWO POINT ONE NINE BILLION DOLLARS HE DECLINED TO COMMENT ON ANALYSTS' ESTIMATES THAT FOURTH QUARTER EARNINGS WERE FIFTEEN CENTS TO TWENTY TWO CENTS A SHARE COMPARED WITH SIXTY THREE CENTS A YEAR EARLIER IN THE FIRST NINE MONTHS CLAIBORNE HAD NET INCOME OF ONE HUNDRED TWELVE MILLION DOLLARS OR ONE DOLLAR AND THIRTY SEVEN CENTS A SHARE ON SALES OF ONE POINT SIX SEVEN BILLION DOLLARS EVER SINCE JULY WHEN CLAIBORNE DISCOVERED THAT IT WOULD BE SADDLED WITH HIGHER THAN ANTICIPATED INVENTORIES THE COMPANY HAS BEEN LABORING TO REVITALIZE ITS BUSINESS PARTICULARLY THE CORE SPORTSWEAR DIVISION THAT GENERATES ABOUT HALF OF CLAIBORNE'S SALES CLAIBORNE WHICH MANUFACTURES GOODS IN THIRTY FOUR COUNTRIES HAS FOCUSED PARTICULARLY ON SHORTENING PRODUCTION LEAD TIMES TO HELP IT ADAPT MORE QUICKLY TO SHIFTING FASHION TRENDS FOR MUCH OF ITS MERCHANDISE SLATED FOR FALL DELIVERY HE SAID CLAIBORNE HAS CUT PRODUCTION LEAD TIME TWENTY FIVE PERCENT TO THIRTY WEEKS INSTEAD OF FORTY MR. CHAZEN EXPECTS THAT WITHIN THE NEXT SIX TO NINE MONTHS PRACTICALLY ALL OF CLAIBORNE'S COLLECTIONS WILL FALL WITHIN THE THIRTY WEEK WINDOW IN NINETEEN NINETY FOUR CLAIBORNE EXPECTS TO SEE A LOT OF PROGRESS IN ITS RUSS TOGS DIVISION OF WOMEN'S APPAREL WHICH IS PRICED LOWER THAN ITS CLAIBORNE LABEL THE MOST DIFFICULT PART OF TAKING OVER RUSS HAS BEEN SETTING UP THE INFRASTRUCTURE AND HIRING PRACTICALLY ALL NEW PEOPLE HE SAID THOUGH SALES OF THE DIVISION WHICH INCLUDES THE BRANDS VILLAGER CRAZY HORSE AND RUSS ROSE TO NEARLY ONE HUNDRED MILLION DOLLARS FROM TWENTY ONE MILLION DOLLARS IN NINETEEN NINETY TWO MR. CHAZEN SAID IT WAS STILL UNPROFITABLE IN NINETEEN NINETY THREE CLAIBORNE PLANS TO OPEN TWENTY TO TWENTY FIVE NEW STORES IN ITS FIFTY FIVE STORE FIRST ISSUE WOMEN'S APPAREL CHAIN THIS YEAR HE SAID THE COMPANY ALSO WILL ADD ABOUT THREE MORE CLAIBORNE FACTORY OUTLET STORES TO THE FORTY IT NOW OPERATES HE SAID EARLIER LAST WEEK ROBERT BERNARD THE PRESIDENT OF CLAIBORNE'S INTERNATIONAL DIVISION RESIGNED TO BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF J. CREW GROUP INCORPORATED CLAIBORNE PLANS TO FILL MR. BERNARD'S POSITION FROM WITHIN MARKING THE LATEST ESCALATION IN WAGE NEGOTIATIONS GERMANY'S POWERFUL METALS UNION I. G. METALL CALLED FOR MASSIVE WARNING STRIKES IN WESTERN GERMANY BEGINNING TODAY NEGOTIATING ON BEHALF OF THREE POINT SEVEN MILLION WORKERS IN WESTERN GERMANY I. G. METALL IS SEEKING WAGE INCREASES OF UP TO SIX PERCENT AND HAS COME OUT VEHEMENTLY AGAINST ATTEMPTS TO DECREASE REAL WAGES AND REDUCE CERTAIN BENEFITS STEPS COMPANIES SAY ARE NECESSARY FOR SURVIVAL HANS JOACHIM GOTTSCHOL PRESIDENT OF THE INDUSTRY'S EMPLOYER ASSOCIATION GESAMTMETALL WARNED THAT PROLONGED STRIKES COULD LEAD TO THE BANKRUPTCY OF TEN PERCENT OF THE COMPANIES IN THE INDUSTRY CITING UNCOMPETITIVE LABOR COSTS COMPANIES WANT A WAGE FREEZE A CUT IN HOLIDAY BENEFITS AND A MORE FLEXIBLE WORKWEEK UNION PRESIDENT KLAUS ZWICKEL SAID EMPLOYERS UNDERESTIMATE QUOTE THE RAGE OF WORKERS AND THEIR WILLINGNESS TO STRIKE QUOTE NEVERTHELESS THERE APPEARS TO BE ROOM FOR COMPROMISE I. G. METALL HAS SAID IT IS WILLING TO ACCEPT LOWER WAGE INCREASES IF COMPANIES AGREE TO JOB GUARANTEES OR LAYOFF PREVENTION THE EMPLOYERS' ASSOCIATION FOR ITS PART OVER THE WEEKEND STRESSED ITS INTEREST IN RETURNING TO THE NEGOTIATING TABLE THE CLINTON ADMINISTRATION IS DEVELOPING A QUOTE CONCERTED AND COORDINATED PROGRAM QUOTE TO FIGHT WHITE COLLAR AND VIOLENT CRIME IN PUBLIC HOUSING ACCORDING TO AN OUTLINE OF THE PROGRAM CALLED OPERATION SAFE HOME IT WOULD TARGET FRAUD IN PUBLIC HOUSING ADMINISTRATION EQUITY SKIMMING IN MULTIFAMILY INSURED HOUSING AND VIOLENT CRIME IN PUBLIC HOUSING VICE PRESIDENT GORE PLANS TO ANNOUNCE THE PROGRAM THIS WEEK ALONG WITH THE HEADS OF THE DEPARTMENTS OF JUSTICE TREASURY AND HOUSING AND URBAN DEVELOPMENT IT WOULD BE ANOTHER IN A SERIES OF HIGH PROFILE MOVES EMPHASIZING THE ADMINISTRATION'S COMMITMENT TO COMBATTING CRIME THIS EFFORT IS ENTIRELY CONSISTENT WITH THE PRESIDENT'S CRIME INITIATIVE SAYS THE DESCRIPTION OF THE PROGRAM HUD HOUSING IS A MAJOR LOCUS OF VIOLENT CRIME WE MUST NOT ALLOW POOR PEOPLE WHO NEED HUD ASSISTANCE TO BE CONTINUALLY VICTIMIZED FEDERAL BUREAU OF INVESTIGATION OFFICIALS AND INVESTIGATORS IN HUD'S INSPECTOR GENERAL'S OFFICE PROBING HOUSING FRAUD EXPECT A SERIES OF SIMULTANEOUS ARRESTS SEARCHES AND INDICTMENTS WITHIN SIX TO NINE MONTHS IT SAYS JUSTICE AND HUD OFFICIALS WOULD DEVELOP A STRATEGY FOR CASES WHERE PRIVATE OWNERS ILLEGALLY DIVERT PROJECT FUNDING QUOTE RESULTING IN HUGE LOSSES IN TAXPAYER MONEY AND SUBSTANDARD LIVING CONDITIONS QUOTE ACCORDING TO THE OUTLINE ONE OFFICIAL SAID SUCH SCHEMES COULD INCLUDE THE OVER VALUATION OF A PROPERTY IN ORDER TO OBTAIN EXCESSIVE GOVERNMENT BACKED FINANCING FOR ITS REMODELING OFFICIALS BELIEVE ABOUT TWENTY FIVE PERCENT OF HUD'S FIFTY BILLION DOLLAR FUND FOR MULTIFAMILY HOUSING PROJECTS IS AT RISK OF BEING HIT BY FRAUDULENT OPERATORS LAW ENFORCEMENT OFFICIALS PLAN TO ESTABLISH FEDERAL STATE AND LOCAL TASK FORCES TO ATTACK CRIME IN PUBLIC AND ASSISTED HOUSING THE TREASURY DEPARTMENT'S BUREAU OF ALCOHOL TOBACCO AND FIREARMS AND THE SECRET SERVICE ALONG WITH THE DRUG ENFORCEMENT ADMINISTRATION THE F. B. I. U. S. ATTORNEYS AND HUD'S INSPECTOR GENERAL'S OFFICE WOULD WORK WITH LOCAL POLICE DEPARTMENTS HOUSING MANAGEMENT AND RESIDENT GROUPS UNDER THE PLAN OFFICIALS IN THE INSPECTOR GENERAL'S OFFICE ACCORDING TO THE OUTLINE WILL FOCUS ON MAJOR INTEGRITY AND ABUSE ISSUES RATHER THAN ON STRICT BUREAUCRATIC COMPLIANCE WITH RULES AND REGULATIONS SEPARATELY ATTORNEY GENERAL JANET RENO CONTINUED HER SEARCH FOR SOMEONE TO SUCCEED DEPUTY ATTORNEY GENERAL PHILIP HEYMANN WHO ANNOUNCED HIS RESIGNATION THURSDAY AMONG THOSE MENTIONED AS POSSIBLE CANDIDATES ARE JO ANN HARRIS ASSISTANT ATTORNEY GENERAL FOR THE CRIMINAL DIVISION JAMIE GOERLICK GENERAL COUNSEL AT THE PENTAGON CHARLES RUFF A WASHINGTON LAWYER WHO PREVIOUSLY SERVED IN SEVERAL JUSTICE DEPARTMENT POSITIONS AND IRVIN NATHAN MR. HEYMANN'S PRINCIPAL DEPUTY BRITISH AIRWAYS P. L. C. SAID IT WILL PAY VIRGIN ATLANTIC AIRWAYS TWO POINT SIX FIVE MILLION POUNDS FOUR MILLION DOLLARS TO SETTLE A DISPUTE OVER AIRCRAFT MAINTENANCE CONTRACTS THE PAYOUT IS THE LATEST IN A STRING OF CLAIMS COUNTERCLAIMS AND SETTLEMENT ATTEMPTS INVOLVING THE TWO FEUDING BRITISH AIRLINES ABOUT A YEAR AGO A TENTATIVE AGREEMENT BETWEEN THE TWO FELL APART WHEN VIRGIN CLAIMED THAT BRITISH AIRWAYS WAS RENEGING ON CERTAIN TERMS AND CONDITIONS VIRGIN SAID BRITISH AIRWAYS HAD OFFERED IT NINE MILLION POUNDS AS A SETTLEMENT BUT HAD DEMANDED SEVERAL CONDITIONS FOR THE PAYMENT BRITISH AIRWAYS WHICH THEN STRONGLY DENIED ANY MONEY WAS ON THE TABLE ADMITTED FRIDAY THAT IT HAD INDEED OFFERED NINE MILLION POUNDS THE SETTLEMENT DOESN'T INTERFERE WITH VIRGIN'S ANTITRUST SUIT AGAINST BRITISH AIRWAYS IN THE U. S. THE CASE OPENS ON MARCH TWENTY FIFTH VIRGIN IS SEEKING DAMAGES OF THREE HUNDRED TWENTY FIVE MILLION DOLLARS THE MAINTENANCE DISPUTE AROSE IN NINETEEN EIGHTY EIGHT AFTER BRITISH AIRWAYS REFUSED TO COMPENSATE VIRGIN FOR DAMAGE CAUSED TO VIRGIN AIRCRAFT UNDER MAINTENANCE BRITISH AIRWAYS SAID THE TWO POINT SIX FIVE MILLION POUND PAYOUT WAS CONSIDERABLY LESS THAN THE SIX MILLION POUNDS THAT VIRGIN HAD DEMANDED BUT WILL WHITEHORN A VIRGIN ATLANTIC SPOKESMAN SAID THE COMPANY HAD ONLY ASKED FOR THREE MILLION POUNDS TO SETTLE QUOTE IT IS A TOTAL AND UTTER LIE THAT WE DEMANDED SIX MILLION POUNDS QUOTE HE SAID BRITISH AIRWAYS IS ALSO PAYING ALL LEGAL COSTS VIRGIN INCURRED IN THIS AFFAIR CHINA AND TAIWAN WILL RESUME HIGH LEVEL TALKS IN BEIJING THIS WEEK AMID SHARPLY LOWER EXPECTATIONS IN TAIWAN'S POLITICAL AND BUSINESS CIRCLES ABOUT WHAT CAN BE EXPECTED FROM THE DIALOGUE JUST NINE MONTHS AGO THE TWO GOVERNMENTS LAUNCHED A HESITANT BUT HISTORIC RAPPROCHEMENT THAT WAS GREETED ENTHUSIASTICALLY BY MANY IN TAIWAN AS THE BEGINNING OF AN ERA OF COOPERATION BETWEEN THE LONG ESTRANGED NEIGHBORS BUT THE EUPHORIA HAS EVAPORATED AS THE TWO SIDES SO FAR HAVE FAILED TO FIND SOLUTIONS TO THE PRACTICAL PROBLEMS ARISING FROM THEIR ECONOMIC LINKS AND UNOFFICIAL EXCHANGES THOSE IN TAIWAN WHO ARE EAGER TO SEE DEEPER TIES NOW UNDERSTAND THAT EACH GOVERNMENT'S POLITICAL AGENDA WILL MAKE ACCORDS ON ALMOST ANY ISSUE DIFFICULT TO ACHIEVE INDEED THE VAST GULF WAS DEMONSTRATED LAST MONTH WHEN FUNDAMENTAL DIFFERENCES OVER NOTIONS OF SOVEREIGNTY BLOCKED AGREEMENT EVEN ON AN ISSUE THAT BOTH GOVERNMENTS WERE EAGER TO SETTLE HOW TO STOP A WAVE OF HIJACKINGS TO TAIWAN FROM CHINA QUOTE AFTER FORTY FIVE YEARS OF SEPARATION SUSPICION AND MISTRUST STILL EXIST QUOTE SAYS CHEN CHIENJEN A MEMBER OF TAIWAN'S LEGISLATURE AND A VICE SECRETARY GENERAL OF THE RULING KUOMINTANG IT'S VERY CLEAR PEOPLE ON BOTH SIDES ARE TRYING TO TEST HOW FAR THE OTHER SIDE WANTS TO GO DESPITE THEIR DIFFERENCES BOTH GOVERNMENTS WANT TO MAINTAIN A DIALOGUE AS A RESULT THEY HAVE AGREED ON A NEW TACK THIS WEEK USING HIGHER LEVEL OFFICIALS THAN IN THE PAST TWO ROUNDS OF TALKS YET ADOPTING A MORE INFORMAL AGENDA TAIWAN WILL BE REPRESENTED BY CHIAO JEN HO THE RECENTLY APPOINTED SECRETARY GENERAL OF THE STRAITS EXCHANGE FOUNDATION THE OSTENSIBLY PRIVATE BODY SET UP TO CONDUCT TALKS WITH CHINA WHILE MAINTAINING TAIWAN'S FICTIONAL PROHIBITION ON GOVERNMENT TO GOVERNMENT CONTACTS MR. CHIAO PREVIOUSLY VICE CHAIRMAN OF THE CABINET LEVEL AGENCY OVERSEEING CROSS STRAIT RELATIONS SUCCEEDED CHEYNE CHIU THE OFFICIAL WHO LED TAIWAN'S TEAM TO BILATERAL TALKS IN SINGAPORE IN APRIL MR. CHIU RESIGNED BECAUSE OF POLICY AND PERSONALITY DIFFERENCES WITH SENIOR GOVERNMENT OFFICIALS TAIWAN OFFICIALS PORTRAY THIS WEEK'S TALKS AS A GET ACQUAINTED SESSION FOR MR. CHIAO WHO HASN'T HAD FACE TO FACE CONTACT WITH THE CHINESE BEFORE THE AGENDA FOR HIS FIVE DAY VISIT IS MUCH FREER THAN THE PAST TWO ROUNDS OF NEGOTIATIONS WHICH INVOLVED LOWER RANKING REPRESENTATIVES HE WILL MEET SEVERAL TIMES WITH TANG SHUBEI HEAD OF THE CHINESE BODY SET UP TO DEAL WITH TAIWAN AND IS LIKELY TO MEET WITH MORE SENIOR OFFICIALS AS WELL THE TWO SIDES PLAN TO DISCUSS STALEMATED ISSUES INCLUDING THE REPATRIATION OF HIJACKERS TO CHINA FROM TAIWAN AND SETTLEMENT OF FISHING DISPUTES THEY ALSO ARE SLATED TO DISCUSS MATTERS RELATED TO TAIWAN'S EXTENSIVE INVESTMENTS IN CHINA SENIOR TAIWAN OFFICIALS ARE GOING OUT OF THEIR WAY TO PLAY DOWN HOPES FOR ANY KIND OF BREAKTHROUGH AT THE BEIJING MEETINGS THEY VIEW THE CURRENT PHASE OF TALKS AS A CONFIDENCE BUILDING STAGE THAT WILL HELP TO BRIDGE DIFFERENCES BUT THERE IS CONSIDERABLE UNCERTAINTY IN TAIPEI ABOUT THE RELATIONSHIP BECAUSE OF THE LEADERSHIP ISSUE IN BEIJING UNTIL CHINA'S AGED LEADER DENG XIAOPING PASSES FROM THE SCENE MANY OF TAIWAN'S POLICY MAKERS VIEW IT AS UNLIKELY THAT BEIJING WILL CHANGE ITS POLICY TOWARD TAIWAN CHINA STILL CLAIMS SOVEREIGNTY OVER TAIWAN AS A PROVINCE EVEN THOUGH TAIWAN'S GOVERNMENT IN NINETEEN NINETY ONE RENOUNCED ITS OWN CLAIM TO RULE ALL OF CHINA A MORE CYNICAL VIEW HOLDS THAT TAIWAN'S GOVERNMENT IS JUST GOING THROUGH THE MOTIONS AT THIS STAGE THEY'RE DOING IT FOR PUBLIC OPINION PURPOSES REALLY SAYS A FOREIGN DIPLOMAT OTHER OBSERVERS SAY TAIPEI WON'T BUDGE ON ANY ISSUE AS LONG AS BEIJING CONTINUES TO DEMONSTRATE HOSTILITY TOWARD TAIWAN IN THE INTERNATIONAL ARENA THE CONTINUING EFFORT TO ISOLATE TAIWAN WAS MOST EVIDENT EARLIER THIS MONTH WHEN FRANCE PUBLICLY PROMISED CHINA THAT IT WOULD REFRAIN FROM SELLING MAJOR WEAPONS SYSTEMS TO TAIWAN BUT PUBLIC OPINION IN TAIWAN IS A POTENT FORCE PUSHING THE TWO SIDES CLOSER TOGETHER PARTICULARLY PRESSURE FROM TAIWAN'S BUSINESS COMMUNITY INTEREST RATES ON CREDIT CARDS AND LOANS WOULD BE FREE OF CAPS PERMANENTLY UNDER A MEASURE BEFORE NEW YORK'S LEGISLATURE A QUOTE BANKING DEREGULATION QUOTE BILL NEEDS TO BE SIGNED INTO LAW BY MIDNIGHT TODAY IF NEW YORK IS TO CONTINUE THE SYSTEM THAT SINCE NINETEEN EIGHTY HAS KEPT A STATE CAP OFF INTEREST RATES NEGOTIATIONS BY THE STATE'S SENATE THE ASSEMBLY AND GOVERNOR MARIO CUOMO'S STAFF FAILED TO PRODUCE A BILL LAST JULY SETTING UP THE CURRENT DEADLINE PORTIONS OF THE MEASURE WERE STILL IN DISPUTE YESTERDAY BUT NEGOTIATORS WERE TRYING TO DRAFT A WIDE RANGING BILL THAT WOULD CONTINUE TO GIVE BANKS THE ABILITY TO SET WHATEVER RATES THEY WANT FOR CREDIT CARDS AND MOST LOANS BANKS HAVE HAD THOSE POWERS SINCE NINETEEN EIGHTY BUT IN THE PAST THE LEGISLATURE HAS EXTENDED DEREGULATION ONLY TEMPORARILY NEGOTIATORS ALSO SEEK A BILL REQUIRING BANKS TO OFFER LOW COST CHECKING ACCOUNTS TO PROVIDE POOR PEOPLE WITH NOFRILLS SERVICES CREATING A TOLL FREE STATE CONSUMER INFORMATION BANKING HOTLINE AND CLAMPING DOWN ON DISCRIMINATION BY BANKS BASED ON WHERE PEOPLE LIVE AMONG OTHER PROVISIONS BUOYED BY STRONG GROWTH IN COMPUTER NETWORKING CHIPCOM CORPORATION WILL REPORT SHARPLY HIGHER FOURTH QUARTER NET ON A SIXTY PERCENT REVENUE JUMP TO MORE THAN FORTY THREE MILLION DOLLARS SAYS ROB HELD PRESIDENT AND CHIEF EXECUTIVE THE MAKER OF COMPUTER NETWORK HUBS WILL EXCEED MOST ANALYSTS' QUARTERLY PROFIT ESTIMATES OF FOUR MILLION DOLLARS OR FORTY ONE CENTS A SHARE ON FIFTEEN PERCENT MORE SHARES MR. HELD SAYS HE ALSO SAYS THE COMPANY QUOTE IS POISED TO GROW VERY RAPIDLY AGAIN IN NINETEEN NINETY FOUR QUOTE ADDING THAT HE IS CONFIDENT CHIPCOM CAN MEET ANALYSTS' ESTIMATES OF TWO HUNDRED FIFTEEN MILLION DOLLARS OF REVENUE FOR THE YEAR IN THE NINETEEN NINETY TWO FOURTH QUARTER CHIPCOM REPORTED NET OF TWO POINT FOUR SIX MILLION DOLLARS OR TWENTY SEVEN CENTS A SHARE ON REVENUE OF TWENTY SEVEN POINT SEVEN SEVEN MILLION DOLLARS THE LATEST RESULTS ESTABLISH CHIPCOM AMONG THE TOP THREE MAKERS OF NETWORK HUBS AFTER SYNOPTICS COMMUNICATIONS INCORPORATED AND CABLETRON SYSTEMS CORPORATION HUBS ARE INTELLIGENT SWITCHING SYSTEMS THAT DIRECT TRAFFIC IN COMPUTER NETWORKS MR. HELD ESTIMATED THAT SALES THROUGH A NEW MARKETING AGREEMENT WITH INTERNATIONAL BUSINESS MACHINES CORPORATION ROSE DURING THE QUARTER AND NOW COMPRISE ABOUT TWENTY FIVE PERCENT OF OVERALL SALES SALES THROUGH DIGITAL EQUIPMENT CORPORATION AN EARLIER CHIPCOM PARTNER HAVE FALLEN AS DIGITAL'S SALES FORCE HAS BEGUN PUSHING ITS INTERNALLY DEVELOPED NETWORK HUB PRODUCT LINE FOR THE YEAR MR. HELD INDICATED CHIPCOM WILL POST NET OF MORE THAN FOURTEEN MILLION DOLLARS OR ONE DOLLAR AND FORTY THREE CENTS A SHARE COMPARED WITH NINETEEN NINETY TWO NET OF EIGHT POINT FOUR FIVE MILLION DOLLARS OR NINETY FOUR CENTS A SHARE ON FEWER SHARES THE ATTENTION OF THE FOREIGN EXCHANGE MARKETS WILL REMAIN FOCUSED ON THE YEN THIS WEEK AS WORD IS AWAITED ON A FISCAL STIMULUS PACKAGE EXPECTED TO BE UNVEILED IN JAPAN ON TUESDAY JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA AND LIBERAL DEMOCRATIC PARTY HEAD YOHEI KONO LAST WEEK REACHED A TENTATIVE COMPROMISE ON POLITICAL REFORM SETTING THE STAGE FOR MR. HOSOKAWA TO UNVEIL A STIMULUS PACKAGE AND BUDGET PLANS FOR THE FISCAL YEAR THAT BEGINS APRIL FIRST ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED NINE POINT NINE TWO YEN AND AT ONE POINT SEVEN FOUR FOUR TWO MARKS JAPAN'S TRADE SURPLUS HAS BEEN A CONTINUING SOURCE OF IRRITATION WITH MAJOR TRADE PARTNERS IN THE EUROPEAN UNION AND THE U. S. IN DECEMBER IT GREW MORE THAN FIFTEEN PERCENT WITH THE U. S. PRESSURE FOR THE ENACTMENT OF A STIMULUS PACKAGE HAS BEEN STRONG AS IT IS WIDELY REGARDED AS A NECESSARY PRECONDITION TO PUTTING MORE MONEY INTO THE HANDS OF JAPANESE CONSUMERS SO THEY CAN BUY U. S. GOODS AND OTHER EXPORTS THUS NARROWING THE TRADE DEFICIT QUOTE MY EXPECTATION IS THAT THE DOLLAR WILL BE STABLE TO MODESTLY STRONGER PRINCIPALLY BECAUSE LONG TERM INTEREST RATES IN THE U. S. WILL BACK UP QUOTE SAID HUGH JOHNSON CHIEF ECONOMIST WITH FIRST ALBANY CORPORATION PROFIT TAKING CAN BE EXPECTED IN THE BOND MARKETS HE SAID HOWEVER MR. JOHNSON SAID HE ALSO EXPECTS JAPANESE LONG TERM INTEREST RATES TO INCREASE FOLLOWING THE UNVEILING OF A STIMULUS PACKAGE THE REAL ISSUE IS CAPITAL FLOWS THE APPEAL OF YEN DENOMINATED BONDS WILL IMPROVE AND THIS WILL ATTRACT MORE CAPITAL FLOWS TO JAPAN MR. JOHNSON SAID THE TREND FOR THE DOLLAR AGAINST THE YEN WILL PROBABLY BE LOWER BUT NOT DRAMATICALLY LOWER DUE TO TROUBLED TRADE NEGOTIATIONS SAID KEVIN FLANAGAN ECONOMIST WITH DEAN WITTER REYNOLDS INCORPORATED MR. HOSOKAWA AND MR. KONO REACHED A TENTATIVE ELEVENTH HOUR COMPROMISE FRIDAY ON KEY POLITICAL REFORMS COMING ONLY HOURS BEFORE A SATURDAY DEADLINE WHEN THE LEGISLATIVE SESSION ENDED THE AGREEMENT APPEARS TO HAVE STAVED OFF THE IMMEDIATE THREAT OF MR. HOSOKAWA'S GOVERNMENT COLLAPSING MY GUESS IS THINGS ARE BEING SORTED OUT AND WE'RE HEADED TOWARD A STIMULUS PLAN TO HELP THE JAPANESE ECONOMY FIRST ALBANY'S MR. JOHNSON SAID THE REAL ISSUE IS WHETHER LONG TERM INTEREST RATES WILL RISE MORE IN JAPAN THAN HERE MR. JOHNSON SAID ABSENT A FISCAL STIMULUS PACKAGE NOW SEEN AS POSSIBLE IN LIGHT OF MR. HOSOKAWA'S POLITICAL REFORM PROGRAM THERE WOULD HAVE BEEN CONSIDERABLE PRESSURE ON THE BANK OF JAPAN TO EASE MONETARY POLICY QUOTE THIS COMPROMISE MEANS THEY CAN PROCEED WITH BUDGET AND STIMULUS TALKS QUOTE SAID SANDY BATTEN SENIOR ECONOMIST WITH CITIBANK IT DEFERS FEARS THE U. S. WILL PLAY HARDBALL IN TRADE TALKS THE TWO COUNTRIES ARE CONDUCTING FRAMEWORK TRADE NEGOTIATIONS AIMED AT HAVING THE JAPANESE OPEN THEIR MARKETS TO MORE EXPORTS HOWEVER DEAN WITTER REYNOLDS' MR. FLANAGAN CAUTIONED AGAINST PLACING MUCH HOPE ON TRADE TALKS WE'RE LOOKING FOR MANAGED TARGETS AND THEY'RE COMPLETELY AGAINST THAT IDEA HE SAID RIGHT NOW WE'RE NOT SEEING MUCH PROGRESS AT ALL WITH LITTLE GROUND GAINED DURING THE TRADE TALKS AND BEFORE MR. HOSOKAWA'S MEETING WITH PRESIDENT CLINTON ON FEBRUARY ELEVENTH THE FEELING IS THE ADMINISTRATION WILL USE A HIGHER YEN AS A BARGAINING CHIP MR. FLANAGAN SAID QUOTE THE YEN FALLOUT EFFECT THAT'S WHAT'S GOING TO BE THE MAIN THEME THIS WEEK QUOTE SAID MARC HENDRICKS ECONOMIST AND RESEARCH DIRECTOR AT SWISS BANK CORPORATION IN LONDON SOMETHING MAY BE SETTLED ON A STIMULUS PACKAGE HE ADDED MR. HENDRICKS SAID STRONG U. S. ECONOMIC DATA ALREADY HAVE BEEN FACTORED INTO THE MARKET SCHEDULED FOR RELEASE THIS WEEK IS THE CRUCIAL JANUARY NON FARM PAYROLLS REPORT AS WELL AS THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S COMPOSITE INDEX ALSO SLATED FOR RELEASE ARE NEW HOME SALES FACTORY ORDERS PERSONAL INCOME AND CONSTRUCTION SPENDING THE MONTHLY AUTOMOBILE SALES FIGURE SET FOR RELEASE THURSDAY WILL TAKE ON MORE IMPORTANCE AS IT WILL BE THE FIRST TIME IN DECADES THE NUMBER HAS BEEN RELEASED WITHOUT TEN DAY SALES PERIODS BEING REPORTED EARLIER EUROPEAN CURRENCIES ARE EXPECTED TO REMAIN IN NARROW TRADING RANGES THROUGHOUT THE WEEK ECONOMISTS SAY THERE WON'T BE MUCH CHANGE IN THE EUROPEAN CURRENCIES AGAINST THE DOLLAR PERHAPS THE DOLLAR WILL GAIN MORE STRENGTH MR. FLANAGAN SAID THE U. S. CURRENTLY IS POISED TO RAISE INTEREST RATES WHEREAS MOST CONTINENTAL COUNTRIES ARE SEEKING TO EASE MONETARY POLICY HE ADDED SHARES OF GREEN POINT SAVINGS BANK'S PARENT JUMPED TWENTY SEVEN PERCENT IN AN INITIAL PUBLIC OFFERING AFTER A FEDERAL APPEALS COURT CLEARED THE WAY FOR ITS CONVERSION FROM MUTUAL TO STOCK OWNERSHIP SHARES OF THE NEW YORK THRIFT'S PARENT G. P. FINANCIAL CORPORATION SURGED TO NINETEEN DOLLARS FROM THE CONVERSION PRICE OF FIFTEEN DOLLARS IN NASDAQ STOCK MARKET TRADING FRIDAY TRADING VOLUME WAS A ROBUST NINETEEN POINT ONE MILLION SHARES THE STOCK TRADES UNDER THE SYMBOL GNPT A FEDERAL JUDGE IN NEW YORK HAD GRANTED A TEMPORARY RESTRAINING ORDER REQUESTED BY CERTAIN DEPOSITORS WHO OPPOSED THE CONVERSION BUT GREEN POINT APPEALED THAT DECISION IN THE U. S. COURT OF APPEALS FOR THE SECOND CIRCUIT WHICH OVERTURNED THE ORDER MELVYN I. WEISS AN ATTORNEY WHO REPRESENTS DEPOSITORS IN THE CLASS ACTION SUIT AGAINST GREEN POINT SAID HE WAS QUOTE DISAPPOINTED QUOTE WITH THE COURT'S DECISION HE SAID HE PLANS TO SEEK MONETARY DAMAGES OF ABOUT TWO HUNDRED MILLION DOLLARS FOR THE CLASS OF PLAINTIFFS CRITICS HAVE ARGUED THAT MANY DEPOSITORS TYPICALLY DON'T BUY SHARES IN STOCK CONVERSION DEALS WHILE MANAGEMENT AND TRUSTEES GET LARGE STOCK OPTIONS AND REAP BIG GAINS ON THEIR PURCHASES WHEN SHARE PRICES RISE IN GREEN POINT'S CASE FOR INSTANCE ONLY ABOUT ELEVEN THOUSAND OF ABOUT TWO HUNDRED FIFTY THOUSAND DEPOSITORS PARTICIPATED IN THE CONVERSION FOLLOWING SUCH CONCERNS THE FEDERAL GOVERNMENT RECENTLY PROPOSED GUIDELINES SEEKING TO PREVENT INSIDERS FROM MAKING EXCESSIVE PROFITS IN SUCH CONVERSIONS MOREOVER NEW YORK STATE BANKING REGULATORS IMPOSED A LIST OF STRINGENT REQUIREMENTS ON GREEN POINT BEFORE GIVING ITS GO AHEAD FOR THE CONVERSION UNDER ONE REQUIREMENT THE SIX POINT FIVE BILLION DOLLAR ASSET BANK MUST DROP PLANS TO ISSUE STOCK GRANTS TO TRUSTEES AND OFFICERS A TOTAL OF FIFTY THREE POINT SEVEN MILLION COMMON SHARES WERE SOLD FRIDAY GIVING THE DEAL A TOTAL VALUE OF EIGHT HUNDRED FIVE MILLION DOLLARS AND MAKING IT THE LARGEST THRIFT CONVERSION ON RECORD ACCORDING TO MARK COHEN A MANAGING DIRECTOR AT ADAMS COHEN SECURITIES IN GREAT NECK N. Y. WHICH LED THE TRANSACTION THE CONVERSION GENERATED PROCEEDS OF SEVEN HUNDRED EIGHTY SIX MILLION DOLLARS FOR GREEN POINT EARLIER REPUBLIC NEW YORK CORPORATION HAD OFFERED TO ACQUIRE GREEN POINT IN A HOSTILE TWO HUNDRED FIFTY MILLION DOLLAR BID BUT REPUBLIC WITHDREW ITS BID IN NOVEMBER AFTER REGULATORS DEEMED IT ILLEGAL SPAIN'S STATE RUN BANKING GROUP ARGENTARIA CORPORATION BANCARIA DE ESPANA SAID ITS CONSOLIDATED NET INCOME ROSE FIFTEEN PERCENT IN NINETEEN NINETY THREE TO SIXTY FOUR POINT EIGHT FOUR BILLION PESETAS FOUR HUNDRED SIXTY FOUR POINT THREE MILLION DOLLARS FROM FIFTY SIX POINT ONE SEVEN BILLION PESETAS IN NINETEEN NINETY TWO ARGENTARIA ALSO SAID IT PLANS TO PAY A TOTAL GROSS DIVIDEND ON ITS NINETEEN NINETY THREE ACCOUNT OF TWO HUNDRED FIFTY PESETAS WITHIN THE BANK'S FORECAST RANGE OF TWO HUNDRED THIRTY PESETAS TO TWO HUNDRED SIXTY PESETAS ARGENTARIA WILL PAY A GROSS FINAL DIVIDEND OF ONE HUNDRED THIRTY FIVE PESETAS AFTER RECEIVING SHAREHOLDER APPROVAL AT THE ANNUAL GENERAL MEETING IT PAID A GROSS INTERIM DIVIDEND OF ONE HUNDRED FIFTEEN PESETAS IN OCTOBER NINETEEN NINETY THREE THE NINETEEN NINETY THREE DIVIDEND IS THE FIRST PAID TO PRIVATE SHAREHOLDERS BY ARGENTARIA WHICH MADE ITS DEBUT ON THE MADRID STOCK MARKET LAST MAY AFTER THE GOVERNMENT PLACED A TWENTY FIVE PERCENT STAKE AMONG INSTITUTIONAL INVESTORS INDIVIDUAL INVESTORS AND EMPLOYEES IN NOVEMBER THE BANK FLOATED AN ADDITIONAL TWENTY FIVE PERCENT ARGENTARIA'S PROVISIONS FOR NONPERFORMING LOANS DECLINED FOUR POINT EIGHT PERCENT IN NINETEEN NINETY THREE TO NINETY FOUR POINT OH NINE BILLION PESETAS FROM NINETY EIGHT POINT EIGHT OH BILLION PESETAS IN NINETEEN NINETY TWO THE BANK'S LOAN LOSS COVERAGE RATE ROSE TO SEVENTY SIX PERCENT FROM SIXTY SEVEN PERCENT IN NINETEEN NINETY TWO ARGENTARIA SAID ITS OPERATING PROFIT IN NINETEEN NINETY THREE ROSE EIGHTEEN POINT NINE PERCENT TO ONE HUNDRED FORTY FOUR POINT TWO NINE BILLION PESETAS FROM ONE HUNDRED TWENTY ONE POINT THREE TWO BILLION PESETAS IN NINETEEN NINETY TWO OPERATING EXPENSES WERE CONTAINED IN NINETEEN NINETY THREE DIPPING ZERO POINT FIVE PERCENT TO ONE HUNDRED SIXTY SIX POINT OH SEVEN BILLION PESETAS FROM ONE HUNDRED SIXTY SIX POINT NINE OH BILLION PESETAS PERSONNEL EXPENSES EDGED UP THREE POINT THREE PERCENT TO ONE HUNDRED TWO POINT NINE NINE BILLION PESETAS FROM NINETY NINE POINT SEVEN THREE BILLION PESETAS WHILE GENERAL EXPENSES DECLINED FIVE POINT SIX PERCENT TO FORTY EIGHT POINT ONE TWO BILLION PESETAS FROM FIFTY POINT NINE NINE BILLION PESETAS THE GROUP'S NONINTEREST INCOME MOSTLY FROM COMMISSIONS AND FEES JUMPED SEVENTEEN PERCENT TO FIFTY FOUR POINT ONE SEVEN BILLION PESETAS FROM FORTY SIX POINT ONE NINE BILLION PESETAS THE BANK SAID STRENGTHENED FUND MANAGEMENT CREDIT CARD SERVICES CAPITAL AND STOCK MARKETS INSURANCE AND FOREIGN CURRENCY ACTIVITY WERE BEHIND THE LARGE RISE IN NONINTEREST INCOME AVERAGE TOTAL ASSETS CLIMBED SEVEN POINT NINE PERCENT TO TEN POINT TWO FIVE TRILLION PESETAS SEVENTY THREE POINT FOUR BILLION DOLLARS IN NINETEEN NINETY THREE WHILE AVERAGE EQUITY INCREASED EIGHT POINT NINE PERCENT TO FIVE HUNDRED SEVENTY TWO POINT TWO THREE BILLION PESETAS THE RETURN ON ASSETS IN NINETEEN NINETY THREE STOOD AT ZERO POINT SEVEN FOUR PERCENT WHILE THE RETURN ON EQUITY WAS THIRTEEN POINT ONE NINE PERCENT THE BANK'S LOAN PORTFOLIO REMAINED PRACTICALLY STABLE EASING ZERO POINT EIGHT PERCENT TO SIX POINT TWO OH TRILLION PESETAS BUT CUSTOMER FUNDS GREW FIFTEEN PERCENT TO FIVE POINT ONE OH TRILLION PESETAS INCLUDING FOURTEEN PERCENT GROWTH IN DEPOSITS TO THREE POINT NINE OH TRILLION PESETAS THE BALANCE OF NONPERFORMING LOANS AT THE END OF NINETEEN NINETY THREE WAS SIX POINT SIX PERCENT LOWER THAN A YEAR EARLIER WHILE BAD DEBTS AS A PERCENTAGE OF TOTAL LOANS DECLINED TO SIX POINT SIX PERCENT FROM SIX POINT NINE PERCENT EXPORT CONTRACTS SIGNED BY NINETEEN MAJOR JAPANESE TRADING HOUSES IN DECEMBER WERE DOWN EIGHT POINT SIX PERCENT FROM A YEAR EARLIER TO EIGHT HUNDRED EIGHTY NINE POINT NINE BILLION YEN EIGHT POINT ONE NINE BILLION DOLLARS THE JAPAN FOREIGN TRADE COUNCIL SAID IMPORT CONTRACTS WERE DOWN NINETEEN POINT FIVE PERCENT TO NINE HUNDRED SIXTY ONE POINT EIGHT BILLION YEN THE GROUP NOTED THAT TOTAL EXPORT CONTRACTS DECLINED ON AN ANNUAL BASIS FOR THE SECOND STRAIGHT MONTH DESPITE SHARP INCREASES IN EXPORTS OF PHARMACEUTICAL PRODUCTS AND MISCELLANEOUS MACHINERY PHARMACEUTICAL EXPORTS TO THE U. S. WESTERN EUROPE AND CHINA WERE UP SHARPLY BUT THE GROUP SAID EXPORTS OF METALS AND TEXTILES WERE SHARPLY LOWER STEEL EXPORTS PARTICULARLY TO CHINA AND WESTERN EUROPE WERE NOTABLY LOWER IT SAID MEANWHILE IMPORTS OF FUEL PRODUCTS AND METALS FELL BRINGING IMPORT CONTRACTS LOWER FOR THE THIRD STRAIGHT MONTH THE IMPORTS OF FUEL PRODUCTS WERE KNOCKED BACK BY LOWER CRUDE OIL PRICES AND BY DECLINING IMPORTS OF LIQUEFIED NATURAL GAS PRODUCTS THE GROUP SAID THE TRADE COUNCIL ALSO RELEASED DATA ON TRADING CONTRACTS SIGNED BY JAPANESE TRADING HOUSES FOR ALL OF NINETEEN NINETY THREE EXPORT CONTRACTS CONCLUDED DURING THE YEAR DROPPED EIGHT POINT SIX PERCENT TO THIRTEEN POINT OH TWO OH TRILLION YEN THE THIRD STRAIGHT YEAR THEY DECLINED THE FIGURE REPRESENTED THE LOWEST LEVEL FOR A FULL YEAR SINCE NINETEEN SEVENTY NINE WHEN EXPORT CONTRACTS TOTALED TWELVE POINT OH ONE NINE TRILLION YEN EXPORTS OF MOST MAJOR PRODUCTS WERE DOWN WITH DROPS IN MACHINERY EXPORTS ACCOUNTING FOR MUCH OF THE OVERALL DECLINE ALTHOUGH LUMBER IMPORTS ROSE IN THE YEAR LOWER FUEL AND METALS IMPORTS CONTRIBUTED TO THE OVERALL DECLINE THE GROUP SAID SAUDI ARABIA AGREED ON A PLAN TO RESTRUCTURE NINE POINT TWO BILLION DOLLARS IN PAYMENTS DUE OVER THE NEXT TWO YEARS TO FIVE MAJOR U. S. DEFENSE CONTRACTORS THE SAUDI AMBASSADOR TO THE U. S. SAID THE AGREEMENT IS ESPECIALLY SIGNIFICANT BECAUSE IT CLEARS THE WAY FOR A BIG SAUDI PURCHASE OF COMMERCIAL AIRCRAFT THE SAUDIS ARE NOW EXPECTED WITHIN A FEW WEEKS TO PLACE ORDERS FOR ABOUT SIX BILLION DOLLARS OF CIVILIAN AIRLINERS FROM BOEING COMPANY AND MCDONNELL DOUGLAS CORPORATION WHILE THE RESTRUCTURING WASN'T EXPRESSLY LINKED TO THE AIRLINER PURCHASE QUOTE ANYTHING OUT OF THE WAY MAKES IT EASIER TO GO ON TO THE NEXT DECISION QUOTE SAID A PERSON FAMILIAR WITH BOTH NEGOTIATIONS PRINCE BANDAR BIN SULTAN SAID THAT THE RESTRUCTURING AGREEMENT WAS SIGNED SATURDAY BY THE SAUDI GOVERNMENT THE U. S. DEFENSE DEPARTMENT AND REPRESENTATIVES OF MCDONNELL DOUGLAS GENERAL DYNAMICS CORPORATION F. M. C. CORPORATION RAYTHEON COMPANY AND THE HUGHES AIRCRAFT UNIT OF GENERAL MOTORS CORPORATION THAT AGREEMENT REWORKS THE SINGLE LARGEST SAUDI ARMS PURCHASE THAT OF SEVENTY TWO STATE OF THE ART F. FIFTEEN FIGHTER JETS FROM MCDONNELL DOUGLAS FOR A TOTAL PRICE OF NINE BILLION DOLLARS OVER SEVERAL YEARS AND REFINANCES MUCH OF THE OTHER SAUDI ARMS PURCHASES PLANNED OVER THE NEXT TWO YEARS WE HAVE AN AGREEMENT WE'VE ALL SIGNED IT AND WE'RE HAPPY WITH IT PRINCE BANDAR SAID IN A TELEPHONE INTERVIEW FROM RIYADH YESTERDAY INSTEAD OF TAKING DELIVERY OF TWO F. FIFTEENS A MONTH STARTING SOMETIME NEXT YEAR AS HAD BEEN PLANNED THE SAUDIS NOW WILL TAKE ONLY ONE BUT MCDONNELL DOUGLAS WON'T SUFFER FROM THAT NEW SCHEDULE BECAUSE THE OTHER F. FIFTEEN IT PRODUCES MONTHLY WILL BE BOUGHT BY ISRAEL WHICH JUST LAST WEEK AGREED TO BUY TWENTY F. FIFTEENS FOR TWO BILLION DOLLARS THEY'LL BE MAKING TWO AIRCRAFT A MONTH ONE FOR US ONE FOR THEM SAID A SAUDI CLOSE TO THE NEGOTIATIONS IF THE SAUDI CASH POSITION WHICH HAS BEEN HURT BY LOW OIL PRICES IMPROVES LATER THIS DECADE THEN THE COUNTRY MIGHT GO BACK TO BUYING TWO F. FIFTEENS A MONTH THIS PERSON ADDED THE RESTRUCTURING OF THE FINANCING IS ESSENTIALLY AS EXPECTED THE SAUDIS WILL CUT BACK THEIR TOTAL CASH PAYMENTS TO ALL FIVE COMPANIES TO ONE POINT FIVE BILLION DOLLARS ANNUALLY OVER THE NEXT TWO YEARS THE REMAINDER ABOUT SIX BILLION DOLLARS WILL BE COVERED BY LOANS GUARANTEED BY THE SAUDI GOVERNMENT WHICH ALSO WILL PAY INTEREST ON THE LOANS BUT IN A DIFFERENT APPROACH THE LOANS WON'T BE TAKEN OUT BY THE COMPANIES INSTEAD THE AGREEMENT CALLS FOR THEM TO FORM A NEW CORPORATION THAT WILL BE THE BORROWER THROUGH THIS FINANCING METHOD THE DEBT WON'T APPEAR EITHER ON SAUDI BOOKS OR ON THE BALANCE SHEETS OF THE COMPANIES THE IDEA BEHIND THE RESTRUCTURING IS TO HAVE THE COMPANIES TAKE AS MUCH IN LOANS AS NEEDED TO MAINTAIN MINIMUM PRODUCTION LEVELS REQUIRED TO AVOID LAYOFFS AND FIANNCIAL DISRUPTION THE PURCHASE OF COMMERCIAL AIRCRAFT WON'T IMMEDIATELY INCREASE SAUDI CASH OUTLAYS BECAUSE THOSE SALES ARE EXPECTED TO BE FINANCED BY THE U. S. EXPORT IMPORT BANK THIS PROGRESS REPORT CARRIES FORWARD A CUSTOM BEGUN SEVENTEEN YEARS AGO IT REFLECTS OUR BELIEF THAT PUBLISHING A NEWSPAPER IS A PUBLIC TRUST FOR WHICH WE ARE ACCOUNTABLE FIRST OF ALL TO YOU OUR READERS BY ANY MEASURE NINETEEN NINETY THREE WAS A GOOD YEAR FOR THIS NEWSPAPER FROM STORIES THAT BROKE NEWS TO EDITORIALS THAT SHAPED NATIONAL AGENDAS FROM EXPANDED READERSHIP TO INCREASED ADVERTISING FROM ENHANCED NEWS CONTENT TO NEW VENTURES WE LOOK BACK ON NINETEEN NINETY THREE WITH PLEASURE AND PRIDE THIS PROGRESS TOOK PLACE IN AN UNCERTAIN ECONOMIC ENVIRONMENT THAT CONTINUES TO CHALLENGE US ALL WE HOPE OUR SUCCESS PROVES A LEADING INDICATOR FOR NINETEEN NINETY FOUR PORTENDING PROGRESS AND PROSPERITY FOR ECONOMIES AND SOCIETIES OUR OTHER HOPE FOR NINETEEN NINETY FOUR IS TO PROVIDE THE NEWS AND INFORMATION YOU NEED TO MANAGE YOUR COMPANIES CAREERS INVESTMENTS AND DAILY LIVES IN RECENT YEARS THIS LETTER HAS FOCUSED ON PERVASIVE PROBLEMS OF THE PRESS FROM PACK JOURNALISM TO EXCESSIVE NEGATIVISM AND ALSO ON THE VALUES AND STANDARDS WE BELIEVE SET THIS NEWSPAPER APART FROM THE MANY MEDIA VOICES COMPETING FOR YOUR TIME AND ATTENTION THOSE WILL BE RECURRING THEMES BECAUSE THE QUALITIES THAT DISTINGUISH THIS NEWSPAPER ITS COMMITMENT TO ACCURACY FAIRNESS AND INDEPENDENCE DEMAND REDEDICATION YEAR AFTER YEAR THIS YEAR HOWEVER I WANT TO FOCUS ON PEOPLE MY COLLEAGUES IN WIDELY DIVERSE JOURNAL JOBS WHO REPORT ANALYZE COMMENT EDIT COMPOSE PRINT SELL AND DISTRIBUTE THIS NEWSPAPER AND SERVE ITS CUSTOMERS THE JOURNAL'S PRIMARY ASSETS AREN'T WAREHOUSES WITH NEWSPRINT AND HIGH SPEED PRESSES NOT SATELLITE TRANSPONDERS AND FIBER OPTIC NETWORKS RATHER OUR ULTIMATE ASSETS ARE THE CREATIVE TALENT AND ENTERPRISE OF MORE THAN TWO THOUSAND FIVE HUNDRED COLLEAGUES THE JOURNAL'S REPUTATION THAT THEY PRESERVE AND ENHANCE AND THE RESULTING TRUST YOU REPOSE IN THEIR WORK SOME OF THESE COLLEAGUES YOU KNOW FROM BYLINES ON THE PAGES OF THE PAPER MANY OTHERS ARE MORE ANONYMOUS BUT NO LESS IMPORTANT IN SERVING NEARLY TWO MILLION SUBSCRIBERS AND NEWSSTAND BUYERS AROUND THE WORLD EACH BUSINESS DAY SO LET ME INTRODUCE YOU TO A SAMPLING OF THEM PAUL INGRASSIA AND JOE WHITE ARE TWO OF THE MANY JOURNAL REPORTERS WHO COVERED INDUSTRY BEATS PROVIDING READERS WITH SPOT NEWS COVERAGE OF CORPORATE DEVELOPMENTS AND FEATURES THAT AMASS AND INTERPRET FACTS TO FORECAST TRENDS PAUL AND JOE CAPPED NINETEEN NINETY THREE BY WINNING THE PULITZER PRIZE FOR BEAT REPORTING FOR THEIR COVERAGE OF GENERAL MOTORS AND THE AUTO INDUSTRY SENIOR EDITOR LAURA LANDRO DIRECTS A TEAM OF FOURTEEN REPORTERS COVERING THE MARKETING MEDIA AND ENTERTAINMENT INDUSTRIES ALL MUCH IN THE NEWS DURING A YEAR WHEN TERMS LIKE QUOTE INTERACTIVE QUOTE AND QUOTE MULTIMEDIA QUOTE BECAME BUSINESS BUZZWORDS AND MEDIA MERGERS OFTEN DOMINATED THE JOURNAL'S PAGES LAURA AND HER COLLEAGUES ANTICIPATED MAJOR MOVES AND ANALYZED HOW INDUSTRY CHANGES WILL AFFECT CONSUMERS AS WELL AS COMPANIES MOST READERS ALSO ARE INVESTORS STAFF REPORTER JOHN DORFMAN HAS CREATED SOME OF THE PAPER'S MOST POPULAR INVESTMENT FEATURES INCLUDING THE DARTBOARD WHICH MATCHES THE STOCK PICKING PROWESS OF EXPERTS AGAINST STOCKS SELECTED BY THE RANDOM TOSS OF A DART THE PROFESSIONALS ARE NARROWLY AHEAD IN NINETEEN NINETY THREE JOHN DESIGNED THE FIRST JOURNAL ALL STAR ANALYST LIST WHICH RANKS ANALYSTS BASED ON QUANTITATIVE MEASUREMENTS OF THEIR ACCURACY IN PICKING STOCKS AND FORECASTING EARNINGS ANOTHER REPORT THAT OFFERED INVESTORS NEWS THEY COULD USE WAS THE GLOBAL JOURNAL'S DECEMBER SECTION ON INVESTING IN CHINA EDITED BY JOHN BUSSEY AND JIM MCGREGOR AND INCLUDING ARTICLES FROM TWENTY JOURNAL REPORTERS THE SECTION LAID OUT THE EXTRAORDINARY OPPORTUNITIES AND POTENTIAL PITFALLS OF INVESTING IN THE WORLD'S FASTEST GROWING ECONOMY THE JOURNAL ALSO RECOGNIZES THAT ECONOMIES ARE COMPOSED OF PEOPLE JOURNAL REPORTER TONY HORWITZ LAST FALL FOCUSED A FRONT PAGE FEATURE ON BRIAN DEYO A FULL TIME WORKER IN A VERMONT HOCKEY STICK FACTORY WHOSE WEEKLY EARNINGS OF ONE HUNDRED EIGHTY EIGHT DOLLARS AND FORTY CENTS FREQUENTLY COULDN'T COVER RENT UTILITIES AND GROCERIES FOR HIS FAMILY TONY RECOUNTED HOW MR. DEYO HUNTS BEAR FOR FOOD NOT SPORT I'M PROUD TO BE A WORKING MAN SAID MR. DEYO I ONLY WISH I MADE A LIVING HUNDREDS OF JOURNAL READERS RESPONDED BY DONATING MONEY FOOD AND OTHER AID TO MR. DEYO AND HIS NEIGHBORS A SAN ANTONIO LAW FIRM SENT A TRUCKLOAD OF CHILDREN'S CLOTHING A WALL STREET BROKERAGE HOUSE TOOK UP A COLLECTION AND THE OWNER OF A VERMONT MAPLE SUGAR PLANT GAVE ALL HIS OWN EMPLOYEES A SIX PERCENT RAISE THIS KIND OF RESPONSE IS CHARACTERISTIC OF JOURNAL READERS JOURNAL REPORTERS RANGED FAR AFIELD TO COVER WORLD EVENTS AND THEIR EFFECT ON PEOPLE PERHAPS THE MOST REMARKABLE SUCH TRIP TOOK MIDEAST REPORTER PETER WALDMAN FROM THE SLUMS OF CAIRO WHERE HE FIRST HEARD OF A CHARISMATIC EGYPTIAN CLERIC TO JERSEY CITY AND BROOKLYN WHERE HE INTERVIEWED SHEIK OMAR ABDEL RAHMAN SEVEN WEEKS BEFORE HIS FOLLOWERS WERE CHARGED WITH BOMBING MANHATTAN'S WORLD TRADE CENTER IN A REMARKABLY PRESCIENT STORY PETER WROTE THAT MILITANT MUSLIMS WERE BRINGING THE VIOLENT STRUGGLE AGAINST THE ENEMIES OF ISLAM INTO THE BELLY OF THE GREAT SATAN ITSELF MUCH ALSO WAS GOING RIGHT WITH THE WORLD IN NINETEEN NINETY THREE INCLUDING THE SPREAD OF POLITICAL AND ECONOMIC FREEDOM TO LONG REPRESSED REGIONS AT THE WALL STREET JOURNAL EUROPE PUBLISHED IN BRUSSELS FORMER FOREIGN CORRESPONDENT FRED KEMPE BECAME MANAGING EDITOR AND CREATED A NEW PUBLICATION FOR THE EMERGING MARKETS OF COUNTRIES IN EASTERN EUROPE THAT HE ONCE COVERED AS SOVIET SATELLITES THE NEW CENTRAL EUROPEAN ECONOMIC REVIEW IS NOW PUBLISHED QUARTERLY IN THE JOURNAL EUROPE AND ALSO SOLD ON NEWSSTANDS FROM BUDAPEST TO BUCHAREST IT'S ONE OF SEVERAL JOURNAL OFFSPRING BORN LAST YEAR INCLUDING HONG KONG WEEK A REGULAR SECTION IN THE ASIAN WALL STREET JOURNAL AND TEXAS JOURNAL A SPECIAL WEEKLY SECTION FOR THE JOURNAL'S ONE HUNDRED THIRTY THOUSAND TEXAS SUBSCRIBERS THESE JOIN OTHER RECENT PROGENY LIKE SMARTMONEY THE NEW MONTHLY MAGAZINE OF PERSONAL FINANCE PUBLISHED BY THE JOURNAL IN PARTNERSHIP WITH HEARST CORPORATION AND THE JOURNAL CLASSROOM EDITION WHICH EACH MONTH REACHES NEARLY ONE HUNDRED THOUSAND HIGH SCHOOL STUDENTS ACROSS AMERICA IT IS THE CREATION OF MELINDA GRENIER A FORMER SCHOOLTEACHER AND JOURNAL REPORTER WHO HAD THE DREAM OF MAKING ECONOMICS AND BUSINESS ACCESSIBLE AND RELEVANT TO HIGH SCHOOL STUDENTS MANY JOURNAL EDITORS LABOR BEHIND THE SCENES AMONG THEM ASSISTANT MANAGING EDITOR DAN HINSON AND MARKETS EDITOR JOHN PRESTBO WITH SIXTY FIVE YEARS OF JOURNAL EXPERIENCE BETWEEN THEM THEY SHARE THE TASK OF DESIGNING REFINING AND UPDATING THE MYRIAD MARKET STATISTICS JOURNAL READERS MONITOR EACH MORNING IN NINETEEN NINETY THREE THEY ADDED TWO NEW FEATURES ENHANCED MUTUAL FUND TABLES PROVIDING UNPRECEDENTED DETAIL ON THE PERFORMANCE OF ABOUT THREE THOUSAND FIVE HUNDRED MUTUAL FUNDS AND THE DOW JONES WORLD STOCK INDEX THAT TRACKS STOCKS AND INDUSTRY GROUPS ON TWENTY FOUR WORLD MARKETS SCORES OF JOURNAL COPY EDITORS COPY READERS PROOFREADERS AND NEWS PRODUCTION PEOPLE ARE INSTRUMENTAL IN SELECTING PRIORITIZING EDITING AND TRANSMITTING NEWS TO OUR COMPOSING ROOMS WITH MAXIMUM SPEED AND QUALITY IN THE FINAL MINUTES BEFORE PRESSES ROLL THESE PRESSURES FALL ON PEOPLE LIKE LARISSA PICKENS AT THE DALLAS PRODUCTION PLANT WHOSE DUTIES INCLUDE FINAL PROOFREADING MAKING CORRECTIONS COMPILING THE DAILY INDEX TO BUSINESS AND SUPERVISING FINAL PAGE MAKEUP IN A NEWSPAPER WHERE ONE WRONG NUMBER CAN UPSET LITERALLY MILLIONS OF READERS LARISSA'S ROLE IS VITAL ANOTHER KIND OF QUALITY CONTROL IS PROVIDED BY PAUL MARTIN AN ASSISTANT MANAGING EDITOR WHOSE DUTIES INCLUDE CRITIQUING EACH DAY'S JOURNAL FOR SUBSTANTIVE AND STYLISTIC MISTAKES ERRORS OF FACT AND FAIRNESS ARE CORRECTED DAILY IN QUOTE CORRECTIONS AND AMPLIFICATIONS QUOTE ON PAGE TWO PAUL ALSO HELPS TO EDUCATE JOURNAL STAFFERS WITH AN INTERNAL NEWSLETTER THAT WAGES PARTICULAR WAR ON JARGON FOR INSTANCE PAUL RECENTLY SPOTTED THE TERM CARE GIVER IN A FRONT PAGE STORY ABOUT NANNIES AND WROTE A PROBLEM WITH CARE GIVER IS THAT NO ONE WHO USES THE SERVICES OF ONE CALLS HER OR HIM BY THAT TERM WILL THE RECIPIENTS OF THE CARE ULTIMATELY BE CALLED CARETAKERS THE JOURNAL'S OPINION PAGES EDITORIAL OP ED AND LEISURE AND ARTS OPERATE INDEPENDENTLY THIS IS APPROPRIATE GIVEN THEIR DIFFERENT FUNCTIONS NEWS PAGES COVER EVENTS AS FACTUALLY AND FAIRLY AS POSSIBLE THE OPINION PAGES EXIST EXPRESSLY TO VOICE VIEWS THAT SPRING FROM A JOURNAL PHILOSOPHY THAT CHAMPIONS FREE PEOPLE AND FREE MARKETS JOURNAL EDITORIAL WRITERS ARTICULATE THIS PHILOSOPHY WITH GUTS AND GUSTO GENERATING CONTROVERSY PROVOKING DEBATE AND FREQUENTLY SHAPING EVENTS LAST YEAR THEY CRUSADED FOR PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT INVEIGHED AGAINST POLITICAL CORRECTNESS ON COLLEGE CAMPUSES AND CALLED FOR FURTHER INVESTIGATION OF EVENTS SURROUNDING THE SUICIDE OF WHITE HOUSE AIDE VINCENT FOSTER JOHN FUND A YOUNG EDITORIAL WRITER INFLUENCED EVENTS WITH A SERIES OF EDITORIALS ON DISCHARGE PETITIONS AN ARCANE SET OF CONGRESSIONAL RULES THAT ALLOWED LEGISLATORS TO MISLEAD CONSTITUENTS BY POSTURING IN FAVOR OF BILLS WHILE SECRETLY VOTING TO KEEP THE SAME BILLS FROM REACHING RECORDED FLOOR VOTES HIS EDITORIALS SPARKED A HOUSE REVOLUTION THAT ENDED THIS FARCE ON A BROADER LEVEL DEPUTY EDITOR DAN HENNINGER'S LANDMARK EDITORIAL NO GUARDRAILS DISSECTED AN AMERICAN SOCIETY CAREENING OFF ITS RAILS BY REPEATEDLY LOWERING BARRIERS OF ACCEPTABLE POLITICAL AND PERSONAL CONDUCT DAN ARGUED THAT HAVING LOWERED THESE GUARDRAILS TO DEFINE ILLEGALITY AS CIVIL DISOBEDIENCE AND IMMORALITY AS PERSONAL PREFERENCE AMERICA'S ELITES SHOULDN'T BE SURPRISED TO SEE SOCIETY'S MORE VULNERABLE MEMBERS FLOATING LIKE FLOTSAM THROUGH THE COUNTRY'S HOSPITALS AND STREETS THE EDITORIAL PROMPTED WIDESPREAD PUBLIC DEBATE AND DERISIVE DENUNCIATION FROM POLITICALLY CORRECT MEDIA EDITORIAL FEATURES EDITOR AMITY SHLAES AND FOUR COLLEAGUES IN THE PAST YEAR CONSIDERED FOR PUBLICATION MORE THAN TEN THOUSAND ARTICLES BY OUTSIDE CONTRIBUTORS SOME WERE COMMISSIONED BUT MOST ARRIVED UNSOLICITED FROM JOURNAL READERS THOSE WE PUBLISHED INCLUDED ARTICLES BY THREE FORMER PRESIDENTS BUT PERHAPS THE MOST IMPORTANT ARTICLE WAS TITLED THE COMING WHITE UNDERCLASS BY CHARLES MURRAY A SOCIAL SCIENTIST IT CHALLENGED THE ENTIRE WELFARE CONCEPT BY NOTING THE KEY ROLES OF TEENAGE PREGNANCY AND ILLEGITIMACY AND IN DOING SO SHIFTED THE CENTER OF NATIONAL DEBATE AMONG THE MOST IMPORTANT COLUMNS ON OUR OPINION PAGES ARE THE ONES DEVOTED TO YOUR VIEWS LETTERS TO THE EDITOR THESE COLUMNS ARE OVERSEEN BY AN UNSUNG HERO NAMED NED CRABB WHO RECEIVES AND READS MORE THAN ONE HUNDRED THOUSAND LETTERS A YEAR THE LETTERS ARRIVE FROM C. E. O.S AND SECRETARIES AMBASSADORS AND SCHOOLTEACHERS ADMIRALS AND HOMEMAKERS FROM MEN AND WOMEN AS DISPARATE AS ALGER HISS AND FOLK SINGER PETER YARROW NOBEL ECONOMIST MILTON FRIEDMAN AND A MAN NAMED PETER BLOCK WHO WROTE OF BEING MAULED BY A GRIZZLY BEAR THE JOURNAL'S LEISURE AND ARTS PAGE LAST FALL CELEBRATED ITS TENTH ANNIVERSARY AS A DAILY FEATURE ITS MOST FREQUENT CONTRIBUTOR IS THE JOURNAL'S ONLY FULL TIME SPORTS WRITER FRED KLEIN ALONG WITH COVERING THE YEAR'S MAJOR MOMENTS IN SPORTS FROM A HEART STOPPING WORLD SERIES TO MICHAEL JORDAN'S RETIREMENT FRED CONTINUED TO DEMONSTRATE HIS SOFT SPOT FOR ORDINARY ATHLETES HIS PICKS FOR OUTSTANDING SPORTS ACHIEVEMENT WERE THOSE OF THE NEW RECORDSETTER FOR PUSHUPS AND A MAN WHO WON A MILLION DOLLARS BY SINKING A BASKET FROM THE FAR END OF A COURT THE DAILY CONTENT OF THE JOURNAL ALSO INCLUDES ADVERTISING WHETHER ANNOUNCING CORPORATE ACHIEVEMENTS OR NEW PRODUCTS ALERTING READERS TO INVESTMENT OPPORTUNITIES OR EXECUTIVE JOB OPENINGS JOURNAL ADVERTISING OFFERS GENUINE BENEFITS TO READERS AND THUS THEY RESPOND OUR ADVERTISERS RANGE FROM THE WORLD'S LARGEST COMPANIES AND FINANCIAL INSTITUTIONS TO SMALL ENTERPRISES LIKE LANE GUEST RANCH A ROCKY MOUNTAIN RESORT AND TOURING AMERICA GUILD A DESIGNER OF CHINA MUGS BOTH CREDIT THE JOURNAL WITH BUILDING THEIR BUSINESSES JOURNAL SALESPEOPLE WORK CLOSELY WITH CLIENTS AND AGENCIES TO DEVELOP INNOVATIVE AND EFFECTIVE ADVERTISING SALES REPRESENTATIVE STEVE WERFEL COLLABORATED WITH A. T. AND T. AND ITS AGENCY YOUNG AND RUBICAM ON A UNIQUE CAMPAIGN FOR A. T. AND T. FAX SERVICES THE ADVERTISEMENTS FEATURE HEADLINES OF TWENTY STORIES FROM THE JOURNAL'S EUROPEAN AND ASIAN EDITIONS AND OFFER FULL TEXT BY FAX INDICATIVE OF JOURNAL READER RESPONSIVENESS TWENTY SUCH ADS LAST YEAR PROMPTED MORE THAN FORTY THOUSAND REQUESTS FOR MORE THAN NINETY THOUSAND ARTICLES CUSTOMER SERVICE IS AN ESSENTIAL COMPONENT OF EVERY SALES JOB ERIC JENSEN FOR MORE THAN TWO DECADES HAS BEEN RESPONSIBLE FOR MANY OF THE JOURNAL'S MOST IMPORTANT FINANCIAL ACCOUNTS ONE OF THESE CALLED HIM ON A SUNDAY SEEKING TO GET A FULL PAGE LETTER TO SHAREHOLDERS IN MONDAY'S JOURNAL ERIC PERSONALLY PICKED UP THE MATERIAL AT A NEW YORK PRINT SHOP LATE THAT AFTERNOON DROVE FOUR HOURS TO THE JOURNAL'S CHICOPEE MASSACHUSETTS COMPOSING ROOM AND GOT THE ADVERTISEMENT INTO LATE EDITIONS OF THE MONDAY PAPER PHYSICAL PRODUCTION OF THE PAPER IS THE JOB OF THE JOURNAL'S PRODUCTION DEPARTMENT WHICH STAFFS EIGHTEEN PRINTING PLANTS ACROSS THE U. S. AND OVERSEES ANOTHER SIX IN EUROPE AND ASIA LIKE MOST JOURNAL STAFFERS PRODUCTION PEOPLE WORK UNDER TOUGH TIME CONSTRAINTS BALANCING THE NEED TO PROVIDE YOU THE LATEST NEWS WITH THE NEED TO PROVIDE THE EARLIEST POSSIBLE DELIVERY FORCES OF NATURE SUCH AS LAST YEAR'S MISSISSIPPI RIVER FLOODS SOMETIMES COMPOUND THESE PRESSURES REGARDLESS FOREMAN JEFF CLINGAN AND HIS CREW AT THE JOURNAL'S DES MOINES IOWA PLANT KEPT PRINTING THE JOURNAL EACH NIGHT AS FLOOD WATERS ROSE AND FOR TWO WEEKS ALSO PRINTED THE DES MOINES REGISTER WHOSE OWN PLANT WAS FLOODED THE JOURNAL'S FRONT LINE DEPARTMENTS IN TURN ARE BACKED BY TECHNICAL EXPERTS AND OTHER SUPPORT STAFFERS AROUND THE WORLD PEOPLE LIKE TERENCE HO AND JOHNNY HUNG IN HONG KONG AND WILLIE STALPAERT IN BRUSSELS WHO KEEP COMPUTER SYSTEMS RUNNING THROUGHOUT THE NIGHT OR TOM DEUTSCH AND HIS U. S. COLLEAGUES WHO HELPED KEEP DOW JONES COMPUTERS ATOP THE WORLD TRADE CENTER OPERATING AFTER IT WAS BOMBED THE JOURNAL'S CIRCULATION TEAM IS RESPONSIBLE FOR MARKETING AND SELLING THE JOURNAL TO SUBSCRIBERS AND ENSURING THE PAPER'S AVAILABILITY AT MORE THAN FIFTY EIGHT THOUSAND RETAIL OUTLETS ACROSS AMERICA AND THOUSANDS MORE OVERSEAS THE DEPARTMENT'S MOST CRITICAL ROLE HOWEVER IS SERVING SUBSCRIBERS SOME ONE HUNDRED EIGHTY JOURNAL CUSTOMER SERVICE REPRESENTATIVES IN CHICOPEE HANDLED MORE THAN TWO MILLION TELEPHONE CALLS LAST YEAR AND ANOTHER HALF MILLION PIECES OF CORRESPONDENCE EVERY CALLER IS PROVIDED PERSONAL SERVICE SUBSCRIBERS SOMETIMES CALL WITH COMPLAINTS A MISLABELED SUBSCRIPTION OR AN ISSUE UNDELIVERED JOURNAL SUBSCRIBERS UNDERSTANDABLY ARE UPSET WITH ANY FLAW IN SERVICE AND CUSTOMER REPRESENTATIVES LIKE BAUKJE MCCRAY ARE ON THE FRONT LINES IN SOLVING SUCH PROBLEMS BAUKJE BEGAN A TELEPHONE RELATIONSHIP WITH AN IRATE TEXAS SUBSCRIBER SOLVED HIS PROBLEM AND CHECKED BACK SEVERAL TIMES TO MAKE SURE IT HADN'T RECURRED THE IMPRESSED SUBSCRIBER BECAME BAUKJE'S PHONE FRIEND AND EVEN OFFERED HER SON HELP GETTING A COLLEGE SCHOLARSHIP SOME SUBSCRIBER LETTERS SURPRISE EVEN VETERAN SERVICE REPRESENTATIVES SEVERAL MONTHS AGO A LETTER ARRIVED FROM ROBERT KOBBLER OF LENEXA KANSAS APOLOGIZING FOR FAILING TO RESPOND SOONER TO A SUBSCRIPTION SOLICITATION LETTER HE RECEIVED IN THE NINETEEN FORTIES MR. KOBBLER HAD PRESERVED THE LETTER AND SOUGHT TO TAKE UP THE OFFER WITH A CHECK FOR EIGHTEEN DOLLARS THE ANNUAL SUBSCRIPTION PRICE PRIOR TO NINETEEN FORTY SEVEN QUOTE I REALIZE YOU MIGHT THINK I HAVE DELIBERATED TO AN EXCESSIVE DEGREE QUOTE HE WROTE QUOTE AND I WON'T BE TERRIBLY DISAPPOINTED IF YOU RENEGE QUOTE THE LETTER REACHED THE DESK OF DAN AUSTIN THE JOURNAL'S VICE PRESIDENT CIRCULATION AND A FELLOW KANSAN WHO NOTED MR. KOBBLER'S SUBSCRIPTION OFFER HAD NO TIME LIMIT AND THUS PERSONALLY PROCESSED IT JOURNAL SUBSCRIBERS AROUND THE WORLD CONSTITUTE A DIVERSE COMMUNITY THEY INCLUDE PRESIDENTS OF COUNTRIES AND COMPANIES FINANCIERS AND ENTREPRENEURS HOMEMAKERS AND COLLEGE STUDENTS PEOPLE FROM PEORIA TO PYONGYANG PRESIDENT BILL CLINTON IS A JOURNAL READER AND CITES ITS ARTICLES PUBLICLY AND PRIVATELY SO FOR EXAMPLE DOES CHINA'S ECONOMIC CZAR ZHU RONGJI JOURNAL SUBSCRIBERS RANGE IN AGE FROM L. FIVE YEAR OLD MATT SETO WHO ALREADY HAS STARTED HIS OWN BROKERAGE COMPANY TO RALPH HON A RETIRED BUSINESS PROFESSOR IN MEMPHIS WHO RECENTLY RENEWED HIS SUBSCRIPTION FOR THE SIXTY SIXTH YEAR GETTING THE JOURNAL TO ITS SUBSCRIBERS IS THE JOB OF HUNDREDS OF JOURNAL COLLEAGUES AROUND THE WORLD IN THE U. S. MORE THAN ONE MILLION JOURNALS A DAY ARE HAND DELIVERED BEFORE BREAKFAST BY CARRIERS OF OUR OWN NATIONAL DELIVERY SERVICE FOR INSTANCE TROY LEGARE A JOURNAL CARRIER FOR MORE THAN FIFTEEN YEARS DELIVERS TO SUBSCRIBERS IN NEW YORK CITY'S FULTON FISH MARKET THESE CUSTOMERS ARE CONSTANTLY ON THE MOVE IN THE EARLY MORNING HOURS SO MR. LEGARE WHO KNOWS HIS PERIPATETIC PATRONS BY SIGHT TRACKS EACH TO PERSONALLY DELIVER THE JOURNAL AND THEN THERE IS CLAUDE CHASE AN EIGHTY THREE YEAR OLD JOURNAL CARRIER IN PHOENIX ARIZONA WHO SLIPPED AND BROKE HIS NOSE LAST YEAR MAKING HIS ROUNDS AFTER A QUICK STOP AT A HOSPITAL EMERGENCY ROOM HE COMPLETED HIS DELIVERIES BEFORE RETURNING FOR FURTHER TREATMENT ALL OF THESE JOURNAL COLLEAGUES AND SEVERAL THOUSAND MORE AROUND THE WORLD JOIN ME IN THANKING YOU FOR YOUR SUPPORT OF THE JOURNAL AND IN WISHING YOU AND YOUR FAMILIES A PEACEFUL AND PROSPEROUS NINETEEN NINETY FOUR LOOKING FOR A STOCK TO GIVE A CHILD OR GRANDCHILD CONSIDER NEWHALL LAND AND FARMING A BIG CALIFORNIA REAL ESTATE DEVELOPER ITS NEAR TERM PROSPECTS ARE CLOUDY BUT KNOWLEDGEABLE MONEY MANAGERS SAY IT HAS A REASONABLE CHANCE TO TRIPLE BY THE END OF THE DECADE CALIFORNIA HAS SUFFERED FROM A STUBBORN RECESSION AND REAL ESTATE HAS SLUMPED NATIONWIDE UNTIL RECENTLY SO NEWHALL HAS LABORED UNDER A DOUBLE WHAMMY BUT NEITHER CALIFORNIA NOR REAL ESTATE WILL STAY DEPRESSED FOREVER QUOTE IF YOU BELIEVE CALIFORNIA IS GOING TO RECOVER THIS IS THE CONSUMMATE CALIFORNIA PLAY QUOTE SAYS MARTIN COHEN A MONEY MANAGER WITH COHEN AND STEERS IN NEW YORK NEWHALL OWNS MORE THAN ONE HUNDRED THOUSAND ACRES OF LAND IN VARIOUS PARTS OF CALIFORNIA WHICH IT IS GRADUALLY TURNING INTO HOUSING DEVELOPMENTS SHOPPING MALLS AND OFFICE BUILDINGS MEANWHILE IT CONTINUES TO OPERATE RANCHES ON MUCH OF THE LAND ITS MOST IMPORTANT LOCATION IS VALENCIA THIRTY FIVE MILES NORTH OF DOWNTOWN LOS ANGELES WHERE IT HAS A PLANNED COMMUNITY A REGIONAL SHOPPING MALL AND ITS CORPORATE HEADQUARTERS THE EARTHQUAKE THAT RECENTLY ROCKED THE LOS ANGELES AREA COULD HURT SALES OF HOUSES AT VALENCIA THIS YEAR SINCE IT DAMAGED MAJOR ROADS CONNECTING VALENCIA TO LOS ANGELES BUT NEWHALL CHAIRMAN THOMAS L. LEE SAYS THAT SO FAR NO PROSPECTIVE HOME BUYERS HAVE CANCELED PURCHASE PLANS THE COMPANY'S PROPERTIES WEREN'T DAMAGED SEVERELY THE MALL REOPENED WITHIN THREE DAYS AND IS SEEING LIGHT BUT IMPROVING TRAFFIC AT THIS POINT HE SAYS IT LOOKS AS IF NEWHALL WILL STILL BE ABLE TO MEET ITS GOAL TO GET FIVE OR SIX NEW HOUSING PROJECTS INTRODUCED THIS YEAR FEW BROKERAGE ANALYSTS FOLLOW NEWHALL WHICH IS STRUCTURED AS A MASTER LIMITED PARTNERSHIP AMONG THE FEW WITH ESTIMATES THE CONSENSUS CALLS FOR NEWHALL TO EARN FIFTY CENTS A UNIT IN NINETEEN NINETY FOUR SUCH PARTNERSHIPS HAVE UNITS RATHER THAN SHARES SOME HIGHLY REGARDED MONEY MANGERS HAVE INVESTED IN THE STOCK JOHN TEMPLETON'S FAMILY OF MUTUAL FUNDS OWNS MORE THAN A MILLION SHARES THE STEIN ROE SPECIAL FUND OWNS MORE THAN SEVEN HUNDRED FIFTY THOUSAND CHARLES ROYCE'S PENNSYLVANIA MUTUAL FUND IS ALSO A BIG HOLDER THESE INVESTORS ARE KNOWN FOR THEIR BARGAIN HUNTING SKILL AT FIRST GLANCE THEIR PRESENCE IN NEWHALL SEEMS INCONGRUOUS BECAUSE NEWHALL STOCK LOOKS EXPENSIVE BY STANDARD MEASURES FOR EXAMPLE IT SELLS FOR FORTY TIMES THE COMPANY'S PER SHARE EARNINGS FOR THE PAST FOUR QUARTERS BUT THE FACT NEWHALL HAS ANY EARNINGS AT ALL GIVEN THE RECENT ECONOMY OF CALIFORNIA IS HEROIC SAYS ONE BROKER WHO FOLLOWS THE STOCK NEWHALL'S APPEAL LIES IN ITS ASSETS BY THE COMPANY'S MOST RECENT APPRAISAL ITS PROPERTIES ARE WORTH A BIT MORE THAN TWENTY ONE DOLLARS A SHARE OR FIFTY PERCENT MORE THAN THE CURRENT STOCK PRICE AND EVEN NEWHALL'S DETRACTORS AGREE THAT THE COMPANY'S APPRAISALS OVER THE YEARS HAVE BEEN CONSERVATIVE DICK PETERSON CO MANAGER OF STEIN ROE SPECIAL FUND SAYS THERE IS AN ELEMENT OF JUDGMENT IN VALUING REAL ESTATE SORT OF LIKE VALUING A REMBRANDT HIS GUESS THE COMPANY'S PROPERTIES ARE WORTH ABOUT TWENTY FIVE DOLLARS TO THIRTY DOLLARS A SHARE IN THE CURRENT CLIMATE AND MR. PETERSON THINKS VALENCIA LOOKS LIKE A CROWN JEWEL FOR THE LONG TERM WHEN YOU DON'T HAVE TO DRIVE AROUND EARTHQUAKE DAMAGE THE SITE IS CONVENIENT TO LOS ANGELES HE SAYS GIVEN THE QUOTE RISING CRIME AND CIVIL DISTURBANCE QUOTE IN THE CITY HE THINKS QUITE A FEW LOS ANGELES RESIDENTS MAY WANT TO MOVE NORTH IN THE SHORT RUN UNFORTUNATELY THERE'S NO SPECIAL REASON TO EXPECT THE SHARES TO OUTPERFORM THE OVERALL MARKET JAMES SCHMITT AN ANALYST AT WEST COUNTRY FINANCIAL IN SOMIS CALIFORNIA SAYS HE WOULD AVOID THE STOCK UNTIL SUCH TIME AS THE CALIFORNIA REAL ESTATE MARKET LOOKS A LOT BETTER MR. SCHMITT CONCEDES THAT CALIFORNIA'S ECONOMY SHOWED SOME MOVEMENT LATE LAST YEAR BUT HE REGARDS THAT AS A HICCUP NOT THE START OF A SOLID RECOVERY JEFF EVERETT AN ANALYST AND MONEY MANAGER WITH THE TEMPLETON ORGANIZATION SAYS WE SEE A LOT OF VALUE IN THEIR LAND AND THEY HAVE MADE GOOD PROGRESS IN DEVELOPING VALENCIA BUT HE ADDS WE'RE VERY DISAPPOINTED WITH MANAGEMENT FOR NOT GETTING PROFITS AND THE STOCK PRICE MOVING MORE BRISKLY MEANWHILE NEWHALL HAS ANOTHER ILLUSTRIOUS FAN PETER LYNCH THE INVESTMENT LEGEND WHO USED TO RUN THE FIDELITY MAGELLAN FUND HAD A KIND WORD FOR NEWHALL IN A RECENT ARTICLE HE WROTE FOR WORTH MAGAZINE NEWHALL QUOTE WAS A SPECTACULAR STOCK FOR TWO DECADES QUOTE MR. LYNCH WROTE QUOTE AND NOW IT CAN BE BOUGHT FOR HALF ITS NINETEEN EIGHTY NINE HIGH PRICE QUOTE YEAR ENDED DECEMBER THIRTY FIRST NINETEEN NINETY THREE FOURTH QUARTER DECEMBER THIRTY FIRST NINETEEN NINETY THREE N. B. C.'S QUOTE HOMICIDE QUOTE IS A POLICE CRIME DRAMA THAT GLEAMS WITH POLISH AND LIFE AND TALENT NONE OF WHICH COULD SAVE LAST WEEK'S EPISODE FROM THE EFFECTS OF ITS SOCIALLY REDEEMING MENDACITY THE SPECIAL PROBLEM THE SHOW'S PRODUCERS FACED HERE RELATES TO THE FACT THAT THERE ARE NOW SOME SUBJECTS NOTABLY CRIME AND MURDER IN THE STREETS ABOUT WHICH IT IS NO LONGER POSSIBLE TO LIE WITH SUCCESS ON THURSDAY THE SHOW BEGAN A BRIEF RETURN RUN WITH AN EPISODE ABOUT A TOURIST ROBBED AND MURDERED ON THE STREETS OF BALTIMORE THE VICTIM KILLED BEFORE THE EYES OF HER CHILDREN AND HUSBAND IS WHITE WHILE THE KILLER AND HIS ACCOMPLICES ARE BLACK TEENAGERS WITH THE INTRODUCTION OF SUCH A STORY LINE AND ITS INEVITABLE RACIAL ELEMENT IT WAS CLEAR THAT PRODUCERS BARRY LEVINSON AND TOM FONTANA HAD WADED INTO DEEP WATERS THIS WAS OF COURSE NOT ENTIRELY ACCIDENTAL DEEP POLITICAL WATERS AND THE APPEARANCE OF RISKINESS BEING AS THEY ARE NOWADAYS ESSENTIAL ELEMENTS OF CRIME AND COP PROGRAMS THE GRIT IN ALL THOSE GRITTY POLICE DRAMAS NEVERTHELESS AND GRIT NOTWITHSTANDING IT BECAME OBVIOUS BEFORE THE MIDPOINT OF THIS EPISODE THAT THE PRODUCERS WERE GOING TO FIND A WAY TO GET THIS PROGRAM AND ITS SENSITIVE STORY LINE SETTLED ON SAFELY CORRECT IDEOLOGICAL SHORES HOW TO DO IT TO APPRECIATE THE DIMENSIONS OF THE TORTURED CREATIVITY REQUIRED FOR THE SOLUTION IT'S NECESSARY FIRST TO NOTE HOW MUCH PUNCTILIOUS EFFORT GOES INTO THIS SHOW AND OTHERS LIKE IT IN THE INTEREST OF AUTHENTICITY SO MUCH CARE SO MUCH STUDY OF NUANCE AND ACCENT ARE DEPLOYED IN ORDER TO GIVE ALL THE VARIOUS SOCIAL TYPES THE AURA AUDIENCES RECOGNIZE AS THE REAL AND THE TRUE EVERYONE GETS THE REALITY TREATMENT EXCEPT IN THIS EPISODE THE PERPETRATOR THE CREATIVE SOLUTION TO THE PRODUCERS' PROBLEM TURNED OUT TO BE SIMPLE ENOUGH YES THE TEENAGER IS GUILTY OF SHOOTING THE WOMAN AND DEVASTATING HER FAMILY BUT AS WE ALSO LEARN THIS KILLER IS SO TENDERHEARTED HE COULD NOT BEAR AS ONE LINE IN THE SCRIPT ACTUALLY INFORMS US THE DEATH OF A RABBIT NOT ONLY IS HE TENDERHEARTED BUT WE LEARN AT THE SHOW'S CONCLUSION THIS YOUTH TOOK CHARGE OF THE GUN ONLY IN ORDER TO MAKE SURE NO ONE ELSE IN THE GANG DID ANYTHING BAD WITH IT IN SHORT IT WAS OUT OF HIS VERY GOODNESS THAT HE ENDED UP KILLING THE WOMAN WHO LISTENING TO THIS WOULD NOT BE SEIZED BY TRANSPORTS OF COMPASSION FOR THE SCRIPTWRITERS OBLIGED TO COME UP WITH SUCH LINES AND WITH SUCH A SOLUTION TEN YEARS AGO SUCH FLIMFLAM ABOUT LIFE ON THE STREET AND ABOUT THE YOUNG OUT BLOWING PEOPLE AWAY ON THE STREET MIGHT HAVE PASSED WITHOUT RAISING AN EYEBROW NOT NOW NOT AFTER ALL THE COLDBLOODED EXECUTIONS SLASH ROBBERIES IN HOUSING PROJECT ELEVATORS AND BODEGAS AFTER ALL THE MURDERS OF UNRESISTING CAB DRIVERS AND FATHERS ON THEIR WAY HOME FROM WAITER'S JOBS OF TOURISTS AND EVERYONE WHO DIDN'T HAND JEWELRY OR JACKETS OVER FAST ENOUGH OR WHO DID AND WERE ANNIHILATED ANYWAY MASTERPIECE THEATRE'S MUCH ANTICIPATED CONTINUATION OF PRIME MINISTER URQUHART'S ADVENTURES IS QUITE A DIFFERENT DISH PACKED THOUGH IT IS WITH RIGHTMINDEDNESS TO PLAY THE KING A FOUR PART SERIES ABOUT A MURDEROUSLY SCHEMING CONSERVATIVE P. M. AND THE SEQUEL TO LAST SEASON'S HOUSE OF CARDS BEGINS SUNDAY ON P. B. S. NINE TO TEN P. M. CHECK LOCAL LISTINGS AT THE END OF LAST YEAR'S FINAL EPISODE RECALL THE P. M. TOSSED HIS LOVER YOUNG INVESTIGATIVE REPORTER MATTIE STORIN OFF THE ROOF OF A GOVERNMENT BUILDING UNKNOWN TO URQUHART MATTIE'S SECRET TAPE RECORDING OF THE P. M.'S INCRIMINATING PRIOR COMMENTS TO SAY NOTHING OF THE RECORDING OF THE POOR WOMAN'S SCREAMS AS SHE IS HURLED TO HER DEATH HITS THE GROUND WITH HER AND IS PICKED UP BY PERSONS UNKNOWN URQUHART IAN RICHARDSON AND HIS STILL MORE HOMICIDALLY AMBITIOUS WIFE ELIZABETH DIANE FLETCHER HAVE A POTENT NEW ENEMY IN THIS SEQUEL NONE OTHER THAN THE NEWLY INSTALLED YOUNG MONARCH THE NEW KING MICHAEL KITCHEN DEAD SET AGAINST URQUHART'S HARD NOSED SOCIAL POLICIES MAKES LENGTHY SPEECHES ABOUT COMPASSION IMPLACABLY EARNEST THE KING WANTS TO GO OUT AND ABOUT ON THE STREETS AND GIVE INTERVIEWS ON T. V. ABOUT THE POLITICS OF CARING WHICH HAVE BEEN ABANDONED BY THE TORY LIKES OF URQUHART FOR WHICH READ THATCHERITES FOR A WHILE IT SEEMS POSSIBLE ONE CAN HOPE ANYWAY THAT THIS HUMORLESS CLOD OF A MONARCH IS MEANT TO BE TAKEN SATIRICALLY FOR A WHILE BUT NOT FOR LONG THE KING'S VIEWS AND MUCH ELSE IN THE SCRIPT ARE ALL MEANT TO UNDERSCORE THE MORAL DIFFERENCE BETWEEN CONSERVATIVE ROTTERS AND THE HIGHER HUMANITY OF THEIR OPPONENTS THERE ARE WE COME TO SEE EVEN TWO DIFFERENT MORALLY SPEAKING KINDS OF HOMOSEXUALS THOSE OF THE RIGHT AND THOSE OF THE HUMANIST PROGRESSIVE LEFT THE KING'S CLOSE FRIEND AND PRESS AIDE THE SENSITIVE PRINCIPLED AND MONOGAMOUS MYCROFT BELONGS TO THE LATTER CATEGORY THE VICIOUS CONSERVATIVE POLITICIAN AND ENEMY OF THE GOOD AND THE TRUE IS ON THE OTHER HAND THE KIND OF HOMOSEXUAL WHO GOES ABOUT CORRUPTING THE YOUNG IN WHAT SURELY RANKS AS ONE OF THE SCRIPT'S MOST IDIOTIC SCENES THE GOOD HOMOSEXUAL MYCROFT BREAKS DOWN AND TELLS HIS GORGEOUS LOVER HE WANTS TO BOLT SO ASHAMED IS HE OF DOING THE SAME THING SEXUALLY AS THE BAD CONSERVATIVE HOMOSEXUAL WHAT RICH SATIRE THIS WOULD ALL BE IF ONLY IT WERE NOT MEANT IN DEAD EARNEST STILL ALL THE POLITICAL TWADDLE CAN'T DIMINISH NOT BY MUCH ANYWAY THE CHARM OF THE SERIES WHICH IS LIKE ITS PREDECESSOR LIVELY AND CLEVER TO THE END THIS IS DUE MOSTLY TO MR. RICHARDSON WHOSE MALIGNANTLY KNOWING SMILE IS MORE POTENT THAN ANY PIECE OF DIALOGUE ALTOGETHER MR. RICHARDSON WHO MAY ALSO BE THE MOST CONVINCINGLY SEXUAL ACTOR OF ADVANCED YEARS AROUND AS URQUHART'S SCENES WITH THE NEW YOUNG THING IN HIS LIFE SHOW IS A STILL MORE HEROICALLY VILLAINOUS URQUHART THIS TIME AROUND THAN THE LAST THE BIOTECHNOLOGY INDUSTRY HAS LAUNCHED AN AGGRESSIVE POLITICAL CRUSADE ARGUING THAT PRICE CONTROLS IN THE CLINTON HEALTH PLAN WILL SEVERELY WOUND BUSINESSES' ABILITY TO ATTRACT CRITICALLY NEEDED INVESTMENTS COMPANY OFFICIALS WANT TO BLOCK A PROPOSAL CREATING A FEDERAL BOARD THAT WOULD HAGGLE WITH COMPANIES OVER PRICES CHARGED FOR NEWLY CREATED PRESCRIPTION MEDICINES THE COMPANIES WORRY THAT THE BOARD WILL WIND UP DICTATING PRICES SHARPLY LIMITING THE RETURNS COMPANIES NEED TO JUSTIFY HIGH RISK INVESTMENTS A PRICING BOARD QUOTE WILL BE CATASTROPHIC IT WILL STRANGLE THE INDUSTRY QUOTE SAYS RICHARD BAGLEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF IMMULOGIC PHARMACEUTICAL CORPORATION OF WALTHAM MASSACHUSETTS A LOT OF GOOD TECHNOLOGY AND PROMISING MEDICAL LEADS WILL GET THROWN DOWN THE DRAIN MR. BAGLEY AND HIS PEERS AT OTHER YOUNG AND SMALL BIOTECH COMPANIES ARE FANNING OUT ACROSS THEIR HOME STATES PLEADING THEIR CASE TO CONGRESSIONAL REPRESENTATIVES AND NEWSPAPER EDITORIAL BOARDS IN WASHINGTON SEVERAL BIOTECH INDUSTRY LOBBYISTS ARE MEETING QUIETLY WITH KEY HEALTH STAFFERS IN THE WHITE HOUSE AND CONGRESS SUGGESTING A COMPROMISE ELIMINATING THE BOARD'S ABILITY TO MANDATE PRICES THE BIOTECH INDUSTRY IS COMPOSED OF DOZENS OF MOSTLY SMALL CONCERNS CREATED WITH VENTURE CAPITAL IN THE PAST FIVE TO TEN YEARS TO COMMERCIALIZE ADVANCES IN GENETICS COMPANY OFFICIALS BITTERLY COMPLAIN THAT THE PRICING BOARD IS AIMED AT THE LARGE DRUG MAKERS SUCH AS MERCK AND COMPANY OR PFIZER INCORPORATED WHICH RAISED PRICES SHARPLY THROUGHOUT THE NINETEEN EIGHTIES THE FEW BIOTECH MEDICINES CURRENTLY AVAILABLE ARE PRICED HIGH COMPANIES SAY TO PROVIDE PREMIUM RETURNS INVESTORS SEEK FOR HIGH RISK INVESTMENTS AND TO FUEL FUTURE RESEARCH WE ARE BEING HURT BECAUSE OF THE ANGER AT THE EXCESSIVE PRICING POLICIES OF THE BIG DRUG COMPANIES SAYS LEONARD SCHLIEFER CHIEF EXECUTIVE AT REGENERON INCORPORATED A TARRYTOWN N. Y. COMPANY SEEKING DRUGS AGAINST NEUROLOGICAL DISEASES NO PROMISES SEVERAL GOVERNMENT AIDES SAY THEY ARE SYMPATHETIC TO THE COMPANIES' CONCERNS THEY SAY THEY ARE LISTENING TO THE INDUSTRY'S PROPOSALS BUT MAKING NO PROMISES ABOUT THE PRICING BOARD AT THE END OF THE DAY WE STILL WILL NEED TO CONTROL SPENDING ESPECIALLY IF AS PROPOSED THE HEALTH PLAN PROVIDES UNIVERSAL COVERAGE FOR OUTPATIENT DRUG BILLS ONE STAFFER SAYS UNDER THE PROPOSED ADMINISTRATION PLAN THE PRICING BOARD WILL REVIEW THE PRICE A COMPANY SEEKS TO CHARGE AND EVALUATE WHETHER IT IS JUSTIFIED BY DEVELOPMENT COSTS IF A COMPANY REFUSES TO NEGOTIATE THE BOARD UNDER THE AUTHORITY OF THE SECRETARY OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES CAN SET THE PRICE ITSELF OR REFUSE TO HAVE GOVERNMENT INSURANCE PLANS REIMBURSE FOR THE DRUG'S USE THE BIOTECH LOBBYISTS ARE HOPING CONGRESS WILL ENACT THEIR IDEA ALLOWING A FEDERAL AGENCY TO DETERMINE IF A NEW DRUG PROVIDES A COST BENEFIT AND THEN DISSEMINATING ITS FINDINGS TO PRIVATE HEALTH INSURANCE PLANS THAT WOULD DECIDE WHETHER TO FULLY REIMBURSE FOR THE DRUG'S COST THAT WOULD ALLOW THE MARKETPLACE TO DETERMINE IF A DRUG'S PRICE IS RIGHT OR NOT SAYS ONE LOBBYIST BIOTECH BUSINESSES ARE WARNING POLITICIANS THAT THE PROSPECT OF PRICE CONTROLS IS FRIGHTENING WALL STREET ALREADY SKITTISH ABOUT THE SPECULATIVE NATURE OF MOST BIOTECH PROJECTS SINCE LAST YEAR WHEN THE PRICING BOARD WAS FIRST PROPOSED STOCK PRICES OF MOST BIOTECH COMPANIES HAVE PLUMMETED BIOTECH OFFICIALS SAY LOWER STOCK VALUES AND NERVOUS INVESTORS ALREADY HAVE FORCED COMPANIES TO SCALE BACK OR JETTISON RESEARCH IF A PRICE BOARD REALLY HAPPENS THEN THE WHOLE INDUSTRY WILL GO OUT OF FAVOR SAYS FREDERIC GREENBERG OF EGS PARTNERS A NEW YORK MONEY MANAGEMENT FUND QUOTE STOCK VALUE WILL DROP NO ONE WILL TOUCH THE GROUP QUOTE BIOTECHNOLOGY COMPANIES ARE ESPECIALLY DEPENDENT ON INVESTOR CAPITAL SINCE EVEN THE SUCCESSFUL ENTERPRISES HAVE YET TO GENERATE A STEADY FLOW OF PRODUCTS TO KEEP EXPENSIVE RESEARCH LABORATORIES HUMMING THESE FIRMS ARE RAVENOUS MR. GREENBERG SAYS THEY CONSTANTLY NEED MORE CASH OFFICIALS AT BIO THE INDUSTRY'S TRADE GROUP IN WASHINGTON ARE PRESENTING POLITICIANS WITH SCENARIOS OF COMPANIES ALREADY INJURED BY INVESTOR ANXIETY THEY POINT FOR EXAMPLE TO TANOX BIOSYSTEM INCORPORATED OF HOUSTON WHICH SAYS IT CAN'T RAISE NEW MONEY TO DEVELOP A SYNTHETIC ANTIBODY TO FIGHT OFF THE AIDS VIRUS WE HAVE THE ANTIBODY SITTING IN THE REFRIGERATOR SAYS HERBERT LOVELESS VICE PRESIDENT OF CLINICAL DEVELOPMENT BUT DOCTOR LOVELESS SAYS HE HAS BEEN TOLD BY INVESTORS THAT IN ADDITION TO THE CONCERN OVER THE COST OF DEVELOPING A PROJECT NOW THEY ARE WORRIED THAT YOU WON'T BE ABLE TO GET THE PRICE YOU NEED CRYOPHARM CORPORATION A SIX YEAR OLD PASADENA CALIFORNIA COMPANY INVESTIGATING WAYS TO EXTEND THE LIFE OF STORED BLOOD SAYS DIFFICULTY GETTING NEW FINANCING FORCED IT TO SHELVE TWO EXPERIMENTAL PROJECTS MACRONEX INCORPORATED A PRIVATE VENTURE BACKED COMPANY IN RESEARCH TRIANGLE PARK N. C. SAYS IT HAS BEEN UNABLE TO TAP NEW INVESTORS TO BACK ITS ASTHMA AND ARTHRITIS DRUG PROGRAMS VENTURE FUNDS HAVE TOLD ME THEY ARE NOT INVESTING BECAUSE OF HEALTH CARE REFORM SAYS DENNIS BURNS MACRONEX'S CHIEF EXECUTIVE QUOTE THEY ARE UNCOMFORTABLE ABOUT MY ABILITY TO TAKE THE COMPANY PUBLIC QUOTE BARRY WEINBERG A PARTNER OF C. W. VENTURES A NEW YORK VENTURE CAPITAL FIRM THAT HAS HELPED SEED MANY BIOTECH STARTUPS OVER THE YEARS SAYS THE LARGER PORTION OF HIS FIRM'S INVESTMENTS THESE DAYS IS OUTSIDE THE AREA OF BIOTECH BECAUSE OF THE RISK OF PRICE CONTROLS THE LIKELIHOOD OF GETTING THE KIND OF RETURNS WE NEED ISN'T THERE MR. WEINBERG SAYS WE ARE MAKING INVESTMENTS IN BIOTECH BUT WE'RE BEING A LOT MORE CAREFUL AND IT'S TAKING US A LOT LONGER TO MAKE UP OUR MINDS CHRISTOPHER JENNINGS A WHITE HOUSE HEALTH AIDE SAYS THE CLINTON ADMINISTRATION WANTS VERY MUCH TO SUPPORT THE BIOTECHNOLOGY INDUSTRY BUT HE SAYS THE ADMINISTRATION ISN'T CONVINCED THE INDUSTRY HAS FINANCING PROBLEMS FEINSTEIN PARTNERS A BOSTON CONSULTING FIRM SAYS BIOTECH COMPANIES IN NINETEEN NINETY THREE RAISED TWO POINT NINE BILLION DOLLARS IN PUBLIC AND PRIVATE STOCK OFFERINGS UP FROM TWO POINT FIVE BILLION DOLLARS IN NINETEEN NINETY TWO BUT THE BIOTECH COMPANIES SAY INITIAL PUBLIC STOCK OFFERINGS DECLINED LAST YEAR FIFTY THREE PERCENT TO SIX HUNDRED SIXTY TWO MILLION DOLLARS MOREOVER MANY COMPANIES SAID THEY HAD TO RAISE CASH THROUGH PRIVATE STOCK SALES CALLED PIPES IN WHICH SHARES ARE SOLD AT TEN PERCENT TO FIFTEEN PERCENT OFF THE STOCK MARKET PRICES ERNST AND YOUNG THE ACCOUNTING FIRM SAYS ABOUT THREE HUNDRED THIRTY FIVE MILLION DOLLARS WAS RAISED THROUGH PIPES IN NINETEEN NINETY THREE UP FROM TEN MILLION DOLLARS IN NINETEEN NINETY TWO MR. BAGLEY OF IMMULOGIC SAYS WASHINGTON SHOULDN'T BE MISLED BY THESE FIGURES ARGUING THAT THE COMPANIES CAN'T LIVE LONG BY SELLING STAKES AT A DISCOUNT QUOTE BELIEVE ME IF WE GET PRICE CONTROLS HALF THE COMPANIES GO OUT OF BUSINESS QUOTE HE SAYS PHOTOGRAPHY COMPANIES ARE FOCUSING ON THE CONSUMERS WHO REALLY CONTROL HOUSEHOLD PURSE STRINGS KIDS FROM OFFERING GIVEAWAYS TO NEIGHBORHOOD SOCCER CLUBS TO PROMOTING THE USE OF CAMERAS IN CLASSROOMS THE BIG NAMES IN THE BUSINESS ARE DOING THEIR BEST TO ENTICE A ONCE OVERLOOKED GROUP OF CONSUMERS WITH GOOD CAUSE QUOTE GROWTH RATES IN THE INDUSTRY ARE NOT WHAT THEY USED TO BE QUOTE SAYS EASTMAN KODAK COMPANY'S BOB LAPERLE GENERAL MANAGER OF SINGLE USE CAMERAS A POPULAR ITEM AMONG YOUNGER CROWDS BUT WE KNOW FROM RESEARCH THAT KIDS STILL THINK PHOTOGRAPHY IS COOL IF WE CAN DEVELOP THESE UNIQUE PROGRAMS FOR THEM WE CAN ACCELERATE THE MARKET THE COMPANIES HAVE LITTLE CHOICE MORE THAN TWENTY FIVE PERCENT OF HOUSEHOLDS DECREASED THEIR PICTURE TAKING BETWEEN NINETEEN EIGHTY SEVEN AND NINETEEN NINETY TWO ACCORDING TO THE PHOTO MARKETING ASSOCIATION'S NINETEEN NINETY THREE CONSUMER SURVEY BLAME VIDEO PARENTS AGED EIGHTEEN TO THIRTY FOUR TRADITIONALLY THE BIGGEST FILM BUYERS ARE TURNING ON VIDEO CAMERAS TO RECORD BABY'S FIRST MEAL FIRST STEP AND FIRST BIRTHDAY IN FACT IN HOUSEHOLDS WITH CHILDREN AGED TWO AND UNDER SEVENTY PERCENT SAID THEY PLAN TO BUY A VIDEO CAMERA ON THEIR NEXT PURCHASE OF PHOTOGRAPHIC EQUIPMENT COMPARED WITH THE EIGHTEEN PERCENT WHO WOULD CHOOSE A THIRTY FIVE M. M. CAMERA ACCORDING TO THE P. M. A. SURVEY BUT CHILDREN ARE A DIFFERENT STORY HAVING GROWN UP IN A VIDEO GENERATION THEY REGARD STILL PHOTOGRAPHY AS SOMETHING OF A NOVELTY SAYS GEORGE ROSENBAUM CHIEF EXECUTIVE OF LEO J. SHAPIRO AND ASSOCIATES RETAIL CONSULTANTS WHAT'S MORE PARENTS SUPPORT PICTURE TAKING AS AN ACTIVITY BECAUSE IT'S CONSIDERED MORE ARTISTIC THAN VIDEO HE SAYS AND IT'S NOT THAT EXPENSIVE CHILDREN CAN CHIP IN THEIR ALLOWANCE TO BUY AND PROCESS FILM I CANNOT THINK OF ANOTHER PRODUCT THAT HAS MORE GOING FOR IT TO BE MARKETED TO CHILDREN MR. ROSENBAUM SAYS I WONDER WHAT TOOK THE PHOTOGRAPHY COMPANIES SO LONG TO REALIZE CHILDREN ARE THE BUYERS MAKING UP FOR LOST TIME FUJI PHOTO FILM COMPANY NOW DIRECTS MORE THAN ONE MILLION DOLLARS OF ITS ADVERTISING AND MARKETING BUDGET TOWARD KIDS SAYS ROD KING FUJI'S DIRECTOR OF U. S. CONSUMER MARKETING LATCHING ONTO FERVOR ABOUT SOCCER'S WORLD CUP NINETEEN NINETY FOUR WHICH WILL TAKE PLACE THIS YEAR IN THE U. S. FOR THE FIRST TIME FUJI SENT DIRECT MAIL TO FIFTEEN THOUSAND SOCCER COACHES FOR A KIDS IN GEAR PROGRAM WHICH GIVES EQUIPMENT RANGING FROM SHINGUARDS TO A TEAM VAN FOR PROOFS OF PURCHASE FUJI IS ALSO GOING TO SCHOOLS IN EXCHANGE FOR PARTICIPATING IN THE COMPANY'S PHOTOPALS PROGRAM WISCONSIN FIFTH GRADE TEACHER WILLIAM WILLIAMS RECEIVES ONE SINGLE USE CAMERA AND SOME COUPONS FOR FILM AND FOR MORE SINGLE USE CAMERAS USING THE EQUIPMENT HIS STUDENTS CORRESPOND PHOTOGRAPHICALLY WITH FUJI SELECTED STUDENTS IN HAWAII IT'S A GOOD DEAL MR. WILLIAMS FIGURES QUOTE THERE ARE NO PHOTOGRAPHY CLASSES HERE QUOTE HE SAYS IF FUJI MAKES SOME MONEY OFF THIS THEN FINE NOT NECESSARILY SAYS JEAN SCHMIDT A NEW JERSEY SCHOOL PRINCIPAL AND FORMER DIRECTOR OF THE NATIONAL HEAD START EDUCATION PROGRAM FOR UNDERPRIVILEGED CHILDREN IT'S SOMETHING THAT HAS TO BE WATCHED VERY CAREFULLY SHE SAYS OF IN SCHOOL CORPORATE ACTIVITIES IF COMPANIES WANT TO HELP FUND SCHOOLS FINE LET US CHOOSE THE PROGRAMS BUT TO USE US FOR ADVERTISING IS IMMORAL FUJI IS WELL AWARE OF EDUCATORS' CONCERNS WE WANT TO BE CAREFUL NOT TO OVERCOMMERCIALIZE THIS SAYS MR. KING ADDING THAT THE PROGRAM OFFERS OPPORTUNITIES TO BOTH THE SCHOOLS AND STUDENTS THAT THEY WOULD OTHERWISE MISS EQUALLY SENSITIVE TO THE COMMERCIALIZATION CONCERN KODAK NOT ONLY DONATES CAMERAS AND FILM TO SCHOOLS AS PART OF ITS QUOTE USING CAMERAS IN THE CURRICULUM QUOTE PROGRAM FOR KIDS IN KINDERGARTEN THROUGH GRADE SIX BUT ALSO LINES UP PHOTOFINISHERS TO PAY THE DEVELOPING BILL FOR A PORTION OF THE PROGRAM THE COMPANY WEAVES ENVIRONMENTAL THEMES INTO ITS PROGRAM AND GIVES TEACHERS A THIRTY FIVE M. M. CAMERA THAT CAN BE USED MORE THAN ONCE KODAK HOPES TO DRAW THE SIX TO ELEVEN YEAR OLD CROWD WITH THE SCHOOL PROGRAM AS IT DID WITH ITS SINGLE USE CAMERA DECORATED WITH CHARACTERS FROM THE HIT MOVIE ALADDIN THEN FOR KIDS TOO OLD FOR SUCH THINGS THERE WAS THE PHOTO FX THIRTY FIVE M. M. CAMERA LAUNCHED LAST YEAR FOR THIRTY NINE DOLLARS AND NINETY FIVE CENTS A REAL CAMERA THAT LOOKS LIKE MOM AND DAD'S MR. LAPERLE SAYS SUCH A GRADUAL TRAINING PROCESS IS VERY VERY SMART SAYS LEO SHAPIRO'S MR. ROSENBAUM IN FACT ALTHOUGH NEARLY SIXTY PERCENT OF ALL CUSTOMERS PLAN TO BUY A CAMCORDER VERSUS A TRADITIONAL CAMERA ON THEIR NEXT PURCHASE THOSE UNDER TWENTY FIVE ARE STILL MORE LIKELY THAN ANY OTHER AGE GROUP EXCEPT THOSE SEVENTY FIVE AND OLDER TO CHOOSE THE STANDARD THIRTY FIVE M. M. CAMERA ACCORDING TO THE PHOTO MARKETING ASSOCIATION'S SURVEY THAT IS WHY KONICA U. S. A. INCORPORATED A UNIT OF KONICA CORPORATION SHIFTED MORE THAN ONE POINT FIVE MILLION DOLLARS FOR A PROMOTION APPEARING DURING A. B. C. NETWORK'S PRIME DAYTIME DRAMA HOURS WHEN TEENAGERS AND COLLEGE STUDENTS TUNE IN OR TAPE THEIR FAVORITE SOAP OPERA SEGMENTS KONICA EVEN SPONSORED A CONTEST FOR CONSUMERS WITH THE WINNER OFFERED A CHANCE TO APPEAR ON ALL MY CHILDREN A NEW GROUP OF PEOPLE IS BECOMING SAVVY ABOUT PHOTOGRAPHY AND THAT'S WHY AS MARKETERS WE'RE GOING AFTER THEM SAYS PAUL GORDON KONICA'S MARKETING SLASH ADVERTISING DIRECTOR IN ITS BID FOR THE YOUTH MARKET POLAROID CORPORATION STAGED EXTENSIVE QUOTE BACK TO SCHOOL QUOTE PROMOTIONS COMPLETE WITH STOCK CAR RACER SHAUNA ROBINSON SIGNING AUTOGRAPHS MEANWHILE MINNESOTA MINING AND MANUFACTURING COMPANY IS TARGETING PRICE CONSCIOUS FAMILIES WITH ITS LOWER PRICED PRIVATE LABEL AND SCOTCH BRAND FILMS THREE M. USES GRAPHICS OF MOMS AND KIDS IN ITS POINT OF SALE ADVERTISING IT THUS HOPES TO ATTRACT PARENTS WHO WANT THEIR LITTLE SUSIE TO EXPERIMENT WITH PICTURE TAKING BUT WHO DON'T WANT TO SPEND A FORTUNE ON WASTED PICTURES OF THE DOG AND SUSIE'S FAVORITE STUFFED ANIMALS AND THREE M. WILL GIVE ABOUT TWO HUNDRED FIFTY THOUSAND DOLLARS TO ITS RETAILERS TO PROMOTE ITS KIT FOR KIDS A TEN DOLLAR PACKAGE WITH A SINGLE USE CAMERA PROJECT BOOK AND PHOTO ALBUM WITH GLUE STICK WHICH THREE M. ALSO MAKES OTHER LEISURE ACTIVITIES HAVE TAKEN THE LEAD AND KIDS HAVE NOT BEEN AS EXPOSED TO PHOTOGRAPHY SAYS THREE M'S JOHN GREGERSON MARKET DEVELOPMENT MANAGER WE'VE GOT TO CONVINCE THEM THAT THERE ARE STILL A LOT OF FUN MEMORIES TO BE MADE HERE COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE FOR ONCE THE NEW DEMOCRATS MAY ACTUALLY INTEND TO TAKE ON THE IRON TRIANGLE THE CLINTONITES MAY HAVE GONE FAINT OF HEART ON LIBERATING THE POOR FROM THE WELFARE BUREAUCRATS BUT THERE'S A WHIFF OF SERIOUSNESS ABOUT THEIR PROPOSAL TO LIBERATE THE NATION'S AIR TRAFFIC CONTROL SYSTEM FROM THE FUMBLE FINGERS AT F. A. A. UTTERING THE UNSPEAKABLE A MEMBER OF VICE PRESIDENT AL GORE'S REINVENTING GOVERNMENT SQUAD TELLS US QUOTE WE WANT TO SEE HOW CLOSE TO PRIVATIZATION WE CAN GET QUOTE THE ANSWER IN THE CURRENT IDEOLOGICAL CLIMATE SEEMS TO BE CORPORATIZATION THAT MEANS GOVERNMENT WOULD RETAIN TITLE TO THE RADARS AND CONTROL TOWERS BUT THE AIRLINES WOULD RUN THE SYSTEM AND MAKE THE INVESTMENT CALLS SINCE IT WOULD BE FUNDED BY USER FEES THE CONGRESSIONAL PORKOPHILES WOULD HAVE TO SEEK GRATIFICATION ELSEWHERE WHEN AUSTRALIA AND NEW ZEALAND ADOPTED THE SAME THEORY FIVE YEARS AGO THE COST OF HANDLING A FLIGHT DROPPED BY TWENTY FIVE PERCENT LET'S DO IT FROM THE THIRD WORLD TO JERSEY CITY YOU CAN OBSERVE THAT PRIVATIZATION HAPPENS WHEN BUREAUCRATS REACH THE INTERSECTION OF PANIC AND DESPAIR BY NOW EVEN THE MOST PURBLIND F. A. A. APPARATCHIK MUST PERCEIVE THE WISDOM IN GETTING SOMEBODY ANYBODY TO TAKE THIS SEVENTEEN BILLION DOLLARS WHITE ELEPHANT OF A MODERNIZATION PROGRAM OFF THEIR HANDS A FEW MONTHS AGO THE AGENCY WAS DIGGING IN ITS HEELS BUT NOW IT'S ON BOARD TIRED OF THE FEDERAL PROCUREMENT LABYRINTH GIVING THEM YESTERDAY'S TECHNOLOGY THE DAY AFTER TOMORROW AT GOVERNMENT PRICES THE AIRLINES AND THEIR UNIONS ARE GUNG HO TO RUN THE SYSTEM THEMSELVES EVEN THE AIR TRAFFIC CONTROLLERS APPLAUD THE MOVE FIGURING THEY'LL GET MORE COMPETITIVE PAY AND A BETTER WORKING ENVIRONMENT PREDICTABLY THE ONLY OAR ROWING IN THE OPPOSITE DIRECTION IS THE REACTIONARY U. S. CONGRESS REPRESENTATIVE JAMES OBERSTAR WAILS THAT THE SAFETY OF THE TRAVELING PUBLIC WOULD BE JEOPARDIZED IF THE PORK BARRELING OPPORTUNITIES OF HIS HOUSE AVIATION SUBCOMMITTEE WERE TRIMMED BACK SLAPPING ANOTHER COAT OF RED ON THIS HERRING ARE THE PRIVATE PILOT AND CORPORATE JET SET LOBBIES RIGHT NOW THE SYSTEM PAYS THEM TO HOG SPACE ON RUNWAYS WHILE JUMBOLOADS OF PAYING PASSENGERS WAIT AND BURN UP PRECIOUS FUEL MR. GORE'S COMMANDOS MAKE A BIG SHOW OF REMINDING EVERYBODY THAT SAFETY ENFORCEMENT WOULD REMAIN A VITAL FEDERAL FUNCTION OFF THE RECORD THEY RECOGNIZE THAT IT'S A PHONY ISSUE FLYING GOT SAFER AFTER DEREGULATION THE AIRLINES WERE SUDDENLY COMPETING FOR PASSENGERS AND NOTHING DRAWS PEOPLE INTO THE AIR LIKE A REPUTATION FOR NOT KILLING YOUR CUSTOMERS THE BIGGEST CHALLENGE FOR THE CLINTONITES WILL BE TO STOP THE HILL FROM LOADING UP THE NEW CORPORATION'S BOARD OF DIRECTORS WITH POLITICAL HACKS THESE WOULD BE PROMOTED IN THE NAME OF DEFENDING THE PUBLIC INTEREST BUT WHAT REALLY INTERESTS THE PUBLIC IS SAFE EFFICIENT AIR TRAVEL THE SAME AS THE AIRLINES THAT'S WHY THE AIRLINES SHOULD HAVE THE DOMINANT VOICE IN MANAGING THE CONTROL SYSTEM ON A SWING THROUGH WASHINGTON RECENTLY PETER PROULX THE TOP MAN AT NEW ZEALAND'S AIR TRAFFIC CONTROL AGENCY SANG THE PRAISES OF THE GORE PROPOSAL BUT ADDED A WARNING NOTE SOONER OR LATER THE POLITICIANS WILL EXPLOIT WHATEVER OPENING YOU LEAVE THEM IN THE LONG RUN THE BEST COURSE LIES WITH TRUE PRIVATIZATION CAMBRIDGE TECHNOLOGY PARTNERS INCORPORATED CITING AN INCREASE IN BUSINESS SAID IT'S COMFORTABLE WITH ANALYSTS' EXPECTATIONS THAT IT WILL REPORT FOURTH QUARTER NET INCOME OF ONE MILLION DOLLARS OR SEVEN CENTS A SHARE ON REVENUE OF NINE POINT EIGHT MILLION DOLLARS IN THE YEAR EARLIER QUARTER THE COMPANY HAD NET INCOME OF FIVE HUNDRED TWENTY ONE THOUSAND DOLLARS OR FOUR CENTS A SHARE ON REVENUE OF FIVE POINT NINE MILLION DOLLARS CAMBRIDGE TECHNOLOGY A CONSULTING FIRM THAT CUSTOM DESIGNS SOFTWARE APPLICATIONS FOR CLIENTS SAID ITS CUSTOMER BASE IS INCREASING AS MORE COMPANIES SWITCH FROM MAINFRAME COMPUTER SYSTEMS TO LESS EXPENSIVE CLIENT SERVER SYSTEMS QUOTE THE ENTIRE WORLD IS GOING IN THIS DIRECTION QUOTE JAMES K. SIMS CHIEF EXECUTIVE AND PRESIDENT SAID IN AN INTERVIEW BILLIONS OF DOLLARS ARE BEING SPENT IN AN OLD WORLD OF TECHNOLOGY THAT DOESN'T SOLVE PROBLEMS COMPANIES ARE LOSING MONEY AND LAYING OFF PEOPLE BECAUSE THE TECHNOLOGY ISN'T WORKING FOR THEM BUT THE INDUSTRY IS CHANGING WITH THE TRANSITION OUR CLIENTS NEED HELP HE SAID CAMBRIDGE TECHNOLOGY HOLDS WORKSHOPS FOR CUSTOMERS TO FIND OUT FROM EMPLOYEES WHAT APPLICATIONS THEY WANT A NEW COMPUTER SYSTEM TO PROVIDE SUCH AS BETTER CUSTOMER SERVICE BILLING OR ORDER MANAGEMENT OPTIONS CAMBRIDGE TECHNOLOGY THEN DESIGNS A COMPUTER SYSTEM AROUND THOSE SPECIFIC APPLICATIONS THE COMPANY WHICH HAS NINE OFFICES IN THE U. S. AND FOUR IN EUROPE SAID IT HAS DESIGNED SYSTEMS FOR ONE HUNDRED TWENTY COMPANIES CAMBRIDGE TECHNOLOGY SAID ITS GROWTH WAS PARTLY DUE TO THE FACT THAT IT AGREES TO SET ITS PRICES ON VARIOUS SERVICES UPFRONT WHILE MANY COMPETITORS DON'T IT ALSO PROMISES TO COMPLETE PROJECTS IN A GIVEN TIME FRAME TYPICALLY SIX TO EIGHT MONTHS COMPARED WITH AN INDUSTRY AVERAGE OF TWO TO THREE YEARS FOR NINETEEN NINETY THREE CAMBRIDGE TECHNOLOGY PARTNERS SAID IT'S COMFORTABLE WITH ANALYSTS' EXPECTATIONS OF NET INCOME OF FOUR POINT THREE MILLION DOLLARS OR THIRTY FOUR CENTS TO THIRTY FIVE CENTS A SHARE ON REVENUE OF THIRTY TWO MILLION DOLLARS RESULTS WILL INCLUDE A ONE POINT TWO MILLION DOLLAR GAIN FOR ACCOUNTING CHANGES IN NINETEEN NINETY TWO THE COMPANY HAD NET INCOME OF ONE POINT THREE MILLION DOLLARS OR ELEVEN CENTS A SHARE ON REVENUE OF NINETEEN POINT TWO MILLION DOLLARS WORDPERFECT CORPORATION SAID IT WON'T RELEASE ANY MAJOR NEW VERSIONS OF ITS D. O. S. WORD PROCESSING PROGRAM ONE OF THE MOST POPULAR PIECES OF SOFTWARE EVER CITING A STEEP DECLINE IN SALES WORDPERFECT THE LAST MAJOR SOFTWARE COMPANY TO DOWNGRADE ITS D. O. S. OFFERINGS IN FAVOR OF MICROSOFT CORPORATION'S WINDOWS OPERATING ENVIRONMENT SAID IT WILL ONLY RELEASE QUOTE MAINTENANCE QUOTE VERSIONS OF ITS D. O. S. WORD PROCESSOR IN THE FUTURE HOWEVER THE CLOSELY HELD COMPANY PROMISED TO ENSURE THAT DOCUMENTS CREATED BY ITS D. O. S. PROGRAM WORK WITH ITS FUTURE WORD PROCESSORS WORDPERFECT SHIPPED A NEW D. O. S. VERSION LAST JUNE AND HAS SOLD ONE POINT FIVE MILLION COPIES SINCE BUT IN RECENT MONTHS SALES HAVE SLOWED CONSIDERABLY AND ARE NOW MINUSCULE COMPARED WITH THE WINDOWS VERSION OF WORDPERFECT A SPOKESMAN SAID THE SWING TO WINDOWS A PROGRAM THAT MAKES D. O. S. EASIER TO USE AND REQUIRES APPLICATIONS TO BE TAILORED TO IT MEANS TOUGHER COMPETITION FOR WORDPERFECT LAST YEAR WORDPERFECT LOST ITS LEAD TO MICROSOFT IN THE ONE POINT THREE BILLION DOLLAR ANNUAL MARKET FOR WORDPROCESSING SOFTWARE PARTLY BECAUSE MICROSOFT PUSHED WINDOWS PROGRAMS HARDER AND SOONER ONE OF NEW YORK'S MIGHTIEST LAW FIRMS SHEA AND GOULD IS CLOSING ITS DOORS UNABLE TO MAKE THE TRANSITION TO A NEW GENERATION OF LEADERSHIP SHEA AND GOULD FELL VICTIM TO POWER STRUGGLES AS ITS PARTNERS BICKERED OVER ITS FUTURE AND DIRECTION AT ITS PEAK THE FIRM HAD THREE HUNDRED FIFTY LAWYERS AND PLAYED A LEADING ROLE IN NEW YORK POLITICS BANKING REAL ESTATE AND SPORTS BUT IT WAS NEVER ABLE TO RESOLVE A QUESTION THAT PLAGUES BUSINESSES AS THEIR FOUNDERS REACH RETIREMENT AGE HOW TO PASS CONTROL FROM AUTOCRATIC PATRIARCHS TO A NEW GENERATION OF MANAGERS THAT PROBLEM WAS EXACERBATED BY THE TOUGH ECONOMIC CLIMATE FOR LAW FIRMS LEGAL MANAGEMENT CONSULTANTS HAD BEEN CALLED IN TWICE TO OVERHAUL SHEA AND GOULD'S FINANCIAL AND ORGANIZATIONAL STRUCTURE AS TENSIONS ESCALATED IN RECENT WEEKS MANY PARTNERS QUIETLY BEGAN TALKS WITH OTHER FIRMS QUOTE IT'S A LAW FIRM THAT HAD TWO GREAT FOUNDERS WITHOUT A SUCCESSOR QUOTE SAYS RODERICK M. HILLS MANAGING PARTNER OF SHEA AND GOULD'S WASHINGTON D. C. OFFICE THERE WERE NO PERSONALITIES TO CARRY IT ON SEVERAL BIG AND MEDIUM SIZED LAW FIRMS HAVE DISSOLVED IN RECENT YEARS AMID NASTY POWER STRUGGLES OVER SUCCESSION OTHERS HAVE COLLAPSED AFTER EFFORTS TO REFINANCE DEBT OR RENEGOTIATE LEASE OBLIGATIONS FAILED AS PARTNERSHIPS LAW FIRMS OFTEN LACK AN INSTITUTIONAL HIERARCHY OR FRAMEWORK FOR MAKING DECISIONS SAYS LAW FIRM CONSULTANT D. BROWARD CRAIG A FORMER PARTNER AT THE DISSOLVED NEW YORK FIRM WEBSTER AND SHEFFIELD BUT FEW FAILED FIRMS HAD THE CLOUT OR REPUTATION OF SHEA AND GOULD SINCE ITS BIRTH THIRTY YEARS AGO SHEA AND GOULD WAS DOMINATED BY ITS LEGENDARY FOUNDING PARTNER WILLIAM A. SHEA A POWERFUL BEHIND THE SCENES BROKER IN CITY AND STATE POLITICS WHO ADVISED MAYORS AND GOVERNORS OF BOTH MAJOR PARTIES AFTER THE BROOKLYN DODGERS BASEBALL TEAM MOVED TO LOS ANGELES MR. SHEA PLAYED A MAJOR ROLE IN CREATING THE NEW YORK METS AND THEIR BALLPARK SHEA STADIUM MR. SHEA WHO DIED IN OCTOBER NINETEEN NINETY ONE AND CO FOUNDER MILTON S. GOULD EIGHTY FOUR YEARS OLD BUILT SHEA AND GOULD INTO A LAW FIRM OF STREET FIGHTERS AND BROKERS THOUGH IT NEVER ESTABLISHED THE KIND OF NATIONAL REPUTATION OF SOME SIMILARLY SIZED FIRMS SUCH AS LOS ANGELES'S O'MELVENY AND MYERS IT WAS A FORCEFUL PRESENCE IN NEW YORK ALBANY AND WASHINGTON AMONG ITS CLIENTS WERE THE BIG SIX ACCOUNTING FIRM DELOITTE AND TOUCHE THE TOYS R. US RETAIL CHAIN AND MANY BANKS INCLUDING MARINE MIDLAND BANK AND APPLE BANK FOR SAVINGS AS WELL AS THE NEW YORK YANKEES AND THE METS REVENUE IN NINETEEN NINETY THREE WAS EIGHTY FIVE MILLION DOLLARS UP FROM EIGHTY THREE MILLION DOLLARS THE YEAR BEFORE FINANCES WEREN'T THE PROBLEM SAYS LAW FIRM CONSULTANT BRADFORD W. HILDEBRANDT WHO WAS CALLED IN TWICE TO ADVISE SHEA AND GOULD AND ULTIMATELY RECOMMENDED THAT IT DISBAND THIS WAS A FIRM THAT HAD BASIC AND PRINCIPLED DIFFERENCES AMONG THE PARTNERS THAT WERE BASICALLY IRRECONCILABLE HE SAYS THE LEADERSHIP CRISIS BEGAN IN THE MID NINETEEN EIGHTIES WHEN MESSRS SHEA AND GOULD BEGAN TO CEDE CONTROL TO YOUNGER LAWYERS IN NINETEEN EIGHTY FIVE THEY RELINQUISHED THEIR VETO POWER OVER THE FIRM'S SEVEN MEMBER EXECUTIVE COMMITTEE ALMOST IMMEDIATELY SHEA AND GOULD BEGAN TO LOSE ITS WAY AT THE PEAK OF THE REAL ESTATE MARKET THE FIRM MOVED FROM SMALLER MADISON AVENUE OFFICES INTO FOUR FLOORS OF THE EXXON BUILDING IN NEW YORK A PRESTIGIOUS BUT EXPENSIVE PROPERTY THEN IT OPENED OFFICES IN LOS ANGLES AND MIAMI WITH TWO COSTLY MERGERS WITH OTHER FIRMS THAT SOON FELL APART BUT THE BIGGEST PROBLEM WAS THE FAILURE OF SHEA AND GOULD'S NEW LEADERS JEROME KERN AND THOMAS E. CONSTANCE TO TAKE THE FOUNDERS' PLACE IN PARTNERS' HEARTS AND APPEASE THE FIRM'S FACTIONS THE MANAGEMENT OF THE FIRM MOREOVER WAS OVERSEEN BY A DIVIDED SEVEN MEMBER COMMITTEE THAT DIDN'T HAVE GOOD BUSINESS SENSE OR THE LOVE OF ITS PARTNERS SAYS MR. HILLS BY NINETEEN NINETY ONE WHEN MR. HILDEBRANDT WAS FIRST HIRED THE EXECUTIVE COMMITTEE HAD SWELLED TO TEN MEMBERS DECISIONS WERE NOT BEING MADE AND THERE WAS TOO MUCH DISAGREEMENT ON POLICY MR. HILDEBRANDT SAYS QUOTE THERE WERE TOO MANY PEOPLE INVOLVED AND PARTNERS FELT THEY WEREN'T BEING CONSULTED ENOUGH QUOTE AT MR. HILDEBRANDT'S URGING THE EXECUTIVE COMMITTEE WAS CUT IN HALF THE FIRM RENEGOTIATED ITS EIGHTEEN MILLION DOLLAR A YEAR LEASE WITH MITSUI AND COMPANY WHICH OWNS THE EXXON BUILDING SHAVING FIFTEEN MILLION DOLLARS IN OVERHEAD OVER THREE YEARS COMPENSATION WAS OVERHAULED TO REFLECT PERFORMANCE MR. KERN BOWED OUT IN NINETEEN NINETY ONE MR. CONSTANCE TOOK OVER LAUNCHING AN AGGRESSIVE RECRUITING CAMPAIGN BRINGING IN TWENTY PARTNERS FROM OTHER LAW FIRMS MR. KERN DECLINED TO COMMENT MR. CONSTANCE DID NOT RETURN PHONE CALLS BUT ACCORDING TO LAWYERS AT THE FIRM THE EXPANSION ONLY SPARKED NEW RIFTS MR. CONSTANCE FOR EXAMPLE RECRUITED BOTH MR. HILLS TO HEAD AN INTERNATIONAL PRACTICE AND CARLA HILLS THE FORMER U. S. TRADE REPRESENTATIVE LAST YEAR MR. HILLS'S WASHINGTON OFFICE LOST ABOUT ONE MILLION DOLLARS A PARTICULAR SORE POINT FOR MANY LAWYERS SAYS A FORMER PARTNER BY OCTOBER THE FIRM HAD BECOME BLOATED AND WAS RIVEN BY DISCORD OVER EXPANSION PLANS RAISING CAPITAL AND DAY TO DAY MANAGEMENT ISSUES NO SINGLE LEADER WAS STRONG ENOUGH TO SEIZE CONTROL ACCORDING TO NEW YORK LEGAL RECRUITER LYNN MESTEL SHEA AND GOULD WAS THE VICTIM OF TOO MUCH DEMOCRACY AFTER TOO MANY YEARS OF DICTATORSHIP THEY NEEDED A YELTSIN SHE SAYS INSTEAD MR. HILDEBRANDT STEPPED IN A SECOND TIME TO RECOMMEND DOWNSIZING SOME TWENTY PARTNERS AND FIFTEEN ASSOCIATES SUBSEQUENTLY DEPARTED FREEING A FLOOR AT THE EXXON BUILDING THAT SHEA AND GOULD PLANNED TO RELINQUISH IN A NEW RENEGOTIATED LEASE BUT MANY PARTNERS HAD GIVEN UP HOPE IN THE PAST MONTH FIVE HAVE LEFT AND TWO WEEKS AGO MR. CONSTANCE BEGAN DISCUSSING MOVING WITH A GROUP OF LAWYERS TO THE NEW YORK OFFICE OF MIAMI'S GREENBERG TRAURIG HOFFMAN LIPOFF ROSEN AND QUENTEL LAST WEEK WHEN THE EIGHTY PARTNERS MET TO VOTE ON DISSOLUTION THE MAJORITY WERE RESIGNED TO THE FACT THAT THE PROBLEMS COULD NOT BE RESOLVED SAYS MR. HILDEBRANDT OTHER THAN ITS LEASE OBLIGATIONS AND FIFTEEN MILLION DOLLARS OWED TO CHEMICAL BANK HE SAYS SHEA AND GOULD HAS NO OTHER SIGNIFICANT DEBT ITS PENSION FUND IS FULLY FUNDED AND PARTNERS AREN'T INDIVIDUALLY LIABLE FOR THE FIRM'S LEASE OBLIGATIONS MR. HILDEBRANDT SAYS THE FIRM HAS ENOUGH ASSETS TO PAY OFF THE DEBT A MISTRIAL WAS DECLARED IN THE LOS ANGELES MURDER TRIAL OF LYLE MENENDEZ AFTER THE JURY FAILED TO REACH A VERDICT MIRRORING THE RESOLUTION TWO WEEKS AGO OF A SEPARATE JURY'S DELIBERATIONS IN THE CASE AGAINST MR. MENENDEZ'S BROTHER ERIK LYLE MENENDEZ TWENTY SIX YEARS OLD WAS ACCUSED WITH ERIK TWENTY THREE OF SHOOTING THEIR WEALTHY PARENTS FOUR YEARS AGO THE BROTHERS TESTIFIED THAT THEY HAD FEARED FOR THEIR LIVES AFTER YEARS OF SEXUAL ABUSE BY THEIR FATHER AND THAT THEY KILLED THEIR MOTHER BECAUSE SHE WAS IN ON THEIR FATHER'S ALLEGED SCHEME TO MURDER THEM LYLE MENENDEZ'S JURY ENDED IN A DEADLOCK AFTER ONE HUNDRED THIRTY SIX HOURS OF DELIBERATIONS WHICH STRETCHED OVER SEVEN WEEKS AND WERE SUSPENDED FOR A WEEK BECAUSE OF THE LOS ANGELES EARTHQUAKE ERIK'S JURY HAD LABORED FOR TWENTY DAYS A GUILTY VERDICT ON THE MOST SERIOUS CHARGE FIRST DEGREE MURDER COULD HAVE BROUGHT THE DEATH PENALTY TWO JURIES WERE USED BECAUSE SOME EVIDENCE WAS PRESENTED AGAINST ONLY ONE BROTHER THOUGH BOTH WERE CHARGED WITH THE SAME CRIMES THREE MEMBERS OF LYLE MENENDEZ'S JURY AND FIVE OF ERIK MENENDEZ'S VOTED TO CONVICT THEM OF FIRST DEGREE MURDER JUDGE STANLEY WEISBERG SAID ACCORDING TO THE ASSOCIATED PRESS THE HUNG JURIES GAVE THE DEFENSE TEAM A CLEAR VICTORY IN AVOIDING CONVICTION EVEN ON LESSER CHARGES SUCH AS MANSLAUGHTER BUT PROSECUTORS HAVE SAID THEY WILL PRESS FOR QUICK RETRIALS OF BOTH DEFENDANTS THE INABILITY OF THE SECOND PANEL TO REACH A DECISION INDICATED ONCE AGAIN THAT DIFFICULT QUESTIONS OF GUILT AND JUSTIFICATION CAN DIVIDE JURORS EVEN IN CASES WHEN CONFESSED KILLERS SHOT AT POINT BLANK RANGE THE CASE STEMMED FROM THE AUGUST TWENTIETH NINETEEN EIGHTY NINE SHOTGUN HOMICIDES OF JOSE MENENDEZ AND HIS WIFE KITTY IN THEIR BEVERLY HILLS CALIFORNIA HOME THE SENIOR MR. MENENDEZ WAS CHAIRMAN OF THE LOS ANGELES VIDEOCASSETTE DISTRIBUTOR LIVE ENTERTAINMENT INCORPORATED AND WAS WELL KNOWN IN HOLLYWOOD SOCIAL AND BUSINESS CIRCLES HIS SONS WHO STOOD TO INHERIT THE COUPLE'S FOURTEEN MILLION DOLLAR ESTATE WERE ARRESTED A FEW MONTHS AFTER THE MURDER THEIR EVENTUAL ACKNOWLEDGMENT THAT THEY HAD FIRED THE SHOTS MADE THE CASE SEEM AT FIRST LIKE AN EASY ONE FOR PROSECUTORS BUT DURING THE FIVE MONTH TRIAL THE CASE CAME TO FOCUS ON LYLE'S AND ERIK'S TESTIMONY ALLEGING HARROWING INSTANCES OF SEXUAL AND EMOTIONAL ABUSE SPANNING MANY YEARS THEY SAID THAT THE MISTREATMENT HAD LED THEM TO BELIEVE THAT THEIR FATHER WITH THEIR MOTHER'S TACIT APPROVAL WAS PREPARED TO KILL THEM THE PROSECUTION ARGUED THAT THE CLAIMS OF ABUSE WERE LIES AND THAT THE BROTHERS HAD ACTED OUT OF HATRED AND AVARICE AMY STEVENS CONTRIBUTED TO THIS ARTICLE EARLIER THIS MONTH UNDERSECRETARY OF STATE LYNN DAVIS WAS ASKED ON THE QUOTE MACNEIL LEHRER QUOTE PROGRAM HOW THE U. S. COULD BE CONFIDENT THAT A DIVERSION OF NUCLEAR MATERIALS WASN'T GOING ON AT NORTH KOREA'S YONGBYON RESEARCH FACILITY WELL BECAUSE WE'VE HAD THIS SAFEGUARDS REGIME IN PLACE OVER THE PAST YEAR AND INDEED HAD AN INSPECTION IN AUGUST SO IT ISN'T THAT WE HAVEN'T BEEN CARRYING OUT THIS REGIME SHE ANSWERED BUT OFFICIALS OF THE INTERNATIONAL ATOMIC ENERGY AGENCY THE VIENNA BASED GROUP THAT ACTUALLY CARRIED OUT THAT AUGUST INSPECTION PAINT A VASTLY LESS ROSY PICTURE ITS INSPECTORS THE GROUP SAYS WERE LITERALLY LEFT GROPING IN THE DARK THEY WERE PERMITTED TO LEAVE THEIR BARRACKS LIKE GUEST QUARTERS AT YONGBYON SIXTY MILES NORTH OF PYONGYANG ONLY AFTER SIX P. M. AS NIGHT FELL THEY WERE ESCORTED INTO THE PITCH BLACK INNARDS OF SEVERAL BUILDINGS THERE USING FLASHLIGHTS BECAUSE THE BUILDINGS' LIGHTS WERE KEPT OUT THE INSPECTORS ONLY REPLACED THE BATTERIES AND VIDEOTAPE IN CAMERAS THAT THEY USE TO MONITOR SOME PARTS OF THE FACILITY END OF INSPECTION OUR AUGUST INSPECTION WAS NOT A GOOD ONE IT WAS SOMETHING WE LAUNCHED UNWISELY SAYS DAVID KYD SPOKESMAN FOR THE I. A. E. A. AS THE I. A. E. A. NEGOTIATES FOR A FRESH LOOK AT SEVEN DECLARED NUCLEAR SITES AT YONGBYON THE ADMINISTRATION IS AGAIN ACCENTUATING THE POSITIVE MS. DAVIS FOR INSTANCE HAS PREDICTED THAT THE AGREEMENT THE U. S. HAS WON FROM NORTH KOREA WILL ALLOW THE I. A. E. A. TO TELL THE REST OF THE WORLD THAT THERE ARE NO DANGEROUS ACTIVITIES OCCURRING IN NORTH KOREA WITH RESPECT TO NUCLEAR WEAPONS BUT WHILE OUTSIDE EXPERTS DISAGREE OVER JUST HOW TO HANDLE THE NORTH KOREAN SITUATION THERE IS WIDESPREAD AGREEMENT ON ONE THING IT IS PROBABLY IMPOSSIBLE NOW FOR THE I. A. E. A. TO ENSURE ANYTHING LIKE THE LEVEL OF COMFORT THE ADMINISTRATION IS PROMISING DAVID KAY A FORMER CENTRAL INTELLIGENCE AGENCY ANALYST WHO LED UNITED NATIONS INSPECTION TEAMS IN IRAQ SAYS THE POSSIBILITY THAT NORTH KOREA MAY ALREADY HAVE AT LEAST ONE NUCLEAR WEAPON MAKES AN I. A. E. A. DECLARATION THAT THERE ARE NO DANGEROUS ACTIVITIES UNDER WAY IN NORTH KOREA EXTREMELY UNLIKELY THE AGREEMENT CALLS FOR THE INSPECTION OF ONLY SEVEN DECLARED SITES NOW NO ONE BELIEVES THAT THE BOMB IS GOING TO BE IN THE BASEMENT OF ANY OF THOSE SITES QUOTE MR. KAY ASSERTS ADMINISTRATION OFFICIALS EXPRESS HOPE THAT FURTHER BARGAINING WILL GAIN I. A. E. A. ACCESS INTO OTHER SITES WHERE THEY SUSPECT BOMB MAKING ACTIVITY HAS GONE ON TO THAT ALBERT WOHLSTETTER A SOMETIME PENTAGON CONSULTANT WHO IS CONSIDERED THE DEAN OF U. S. THINKERS ON HOW TO CONTAIN THE SPREAD OF NUCLEAR WEAPONS HAS A SHORT ANSWER THIS IS A JOKE THE ADMINISTRATION MR. WOHLSTETTER THINKS HAS VASTLY OVERSOLD THE ABILITY OF I. A. E. A. INSPECTIONS TO PENETRATE THE DEEP SECRECY OF NORTH KOREA WHERE STALINIST DOGMA APPROACHES ORWELLIAN LEVELS OF CONTROL A LOT OF THIS STUFF BECOMES A DREAM IF YOU'RE NOT TALKING ABOUT AN OPEN SOCIETY YOU'RE TALKING ABOUT A SOCIETY WHERE WHISTLE BLOWERS COMMIT SUICIDE I REALLY FEEL THAT PEOPLE ARE GETTING OFF THE POINT THE POINT THAT HE AND OTHERS ARE FOCUSING ON IS THAT IF NORTH KOREA HAS THE BOMB OR HAS DRAWN OFF ENOUGH PLUTONIUM FROM ITS PEACEFUL NUCLEAR RESEARCH TO MAKE ONE OR TWO NUCLEAR DEVICES AS THE C. I. A. HAS SUGGESTED THEN THE RELATIONSHIP BETWEEN THE ISOLATED REGIME OF KIM IL SUNG AND ITS NEIGHBORS HAS ALREADY CHANGED AND I. A. E. A. STYLE INSPECTIONS WON'T BE ABLE TO REDUCE THE PERCEPTION OF DANGER CRITICS SAY THE EXTRAVAGANT CLAIMS FOR THE I. A. E. A. ARE IN KEEPING WITH THE ADMINISTRATION'S UNCERTAIN HANDLING OF THE ENTIRE NORTH KOREAN NUCLEAR ISSUE THE NUCLEAR NONPROLIFERATION TREATY SAYS MR. KAY REQUIRES THAT EITHER YOU COMPLETELY GIVE UP YOUR BOMB PROGRAM THE WAY SOUTH AFRICA HAS WITH INTRUSIVE INSPECTIONS TO PROVE YOU HAVE GIVEN IT UP OR ELSE YOU GET OUT OF THE TREATY BUT BY NEGOTIATING INCH BY INCH NORTH KOREA HAS GOTTEN WHAT IT APPARENTLY WANTED MORE TIME TO WORK ON ITS NUCLEAR WEAPONS AND THE MISSILES TO CARRY THEM WITHOUT OUTSIDE INTERFERENCE KONGDAN OH A RAND CORPORATION ANALYST WHO CLOSELY FOLLOWS NORTH KOREA SAYS THAT THE U. S. QUOTE SHOWED THE WORST ASPECT OF NEGOTIATORS WE SHOWED THEM AMERICANS ARE IMPATIENT FOR RESULTS THEY NORTH KOREANS PLAYED THE GAME MUCH TOUGHER NOW WE LOOK LIKE WE ARE GIVING THINGS AWAY IT'S A VERY SAD SITUATION BY HANGING TOUGH PYONGYANG APPEARS TO HAVE WON THE TERMINATION OF THIS YEAR'S TEAM SPIRIT JOINT EXERCISE BETWEEN U. S. AND SOUTH KOREAN FORCES THIS WAS THE CARROT THAT WAS ORIGINALLY DANGLED BEFORE PYONGYANG AS A LURE TO GET THEM BACK INTO THE TREATY BUT THE PENTAGON DIDN'T ENHANCE IT MUCH BY FAILING TO PUT THE FUNDS FOR THE EXERCISE IN ITS NINETEEN NINETY FOUR BUDGET U. S. INTELLIGENCE ESTIMATES SEE NORTH KOREA WITH AT BEST A PRIMITIVE NUCLEAR DEVICE FIRST GENERATION NUCLEAR WEAPONS WEIGH AT LEAST ONE THOUSAND ONE HUNDRED POUNDS NORTH KOREA HAS SCUD MISSILES CAPABLE OF CARRYING SUCH A LOAD TO SEOUL AND IS DEVELOPING THE NODONG ONE WHICH COULD CARRY SUCH A WARHEAD TO PARTS OF JAPAN NORTH KOREAN ENGINEERS ARE STILL TRYING TO PERFECT THE GUIDANCE SYSTEM FOR THE MISSILE A PROCESS THAT COULD TAKE SEVERAL MORE MONTHS MEANWHILE NORTH KOREA CONTINUES TO LAY THE GROUNDWORK FOR FURTHER DELAYS AT PYONGYANG'S REQUEST THE I. A. E. A. HAS TWICE WRITTEN LENGTHY EXPLANATIONS OF WHAT IT WANTS TO INSPECT LAST WEEK NORTH KOREA ASKED FOR A THIRD SO FAR IT HAS REFUSED TO RESUME DIPLOMATIC DIALOGUE WITH SOUTH KOREA BOTH THE INSPECTION AND THE DIALOGUE ARE PREREQUISITES FOR TALKS LEADING TO A PACKAGE SOLUTION OUTLINED BY THE U. S. AFTER U. S. OFFICIALS MADE IT KNOWN LAST WEEK THAT THEY ARE CONSIDERING SENDING PATRIOT AIR DEFENSE MISSILES TO PROTECT PORTS AND AIRFIELDS THAT WOULD BE NEEDED FOR U. S. FORCES TO REINFORCE SOUTH KOREA PYONGYANG ISSUED A STATEMENT SAYING THAT THE REAL REASON FOR THE MISSILES IS TO IMPEDE THE PROGRESS OF THE DPRK NORTH KOREA U. S. TALKS FOR A FUNDAMENTAL SOLUTION TO THE NUCLEAR ISSUE ACCORDING TO U. S. OFFICIALS THE I. A. E. A. CAN END THE IMPASSE BY SIMPLY DECLARING THAT IT CAN NO LONGER ASSURE THE CONTINUITY OF ITS SAFEGUARDS EFFORTS IF THE DELAYS CONTINUE SUCH A STATEMENT IS LIKELY ON FEBRUARY TWENTY SECOND WHEN THE AGENCY'S BOARD OF GOVERNORS HOLDS ITS NEXT MEETING THAT WOULD SEND THE MATTER BACK TO THE U. N. SECURITY COUNCIL WHICH WOULD THEN CONSIDER IMPOSING ECONOMIC SANCTIONS ALTHOUGH U. S. NEGOTIATORS ARE FEELING HEAT FROM THE WHITE HOUSE TO RESOLVE THE NORTH KOREAN PROBLEM SOME SUGGEST THAT THE U. S. SHOULDN'T BE IN SUCH A HURRY RAND'S MS. OH FOR EXAMPLE SUGGESTS THAT IT IS NORTH KOREA THAT OUGHT TO FEEL THAT TIME IS RUNNING AGAINST IT WITH THEIR POVERTY STRICKEN ECONOMY VERGING ON TOTAL COLLAPSE SHE SAYS KIM IL SUNG AND HIS SON AND ANNOINTED SUCCESSOR KIM JONG IL ARE DESPERATE FOR WESTERN AID BUT IF THEY OPEN THEIR ECONOMY TO THE OUTSIDE INFLUENCES THAT COME WITH AID FROM THE WEST MS. OH BELIEVES THEIR REGIME WILL COLLAPSE THE COUNTRY THAT HAS TO BE NERVOUS IS NORTH KOREA NOT US SHE INSISTS BUT FOR SOME REASON WE ARE THE NERVOUS PARTY DAVID KAY PREVIOUSLY WAS AN OFFICIAL FOR THE INTERNATIONAL ATOMIC ENERGY AGENCY IN VIENNA IN AN ARTICLE YESTERDAY ABOUT INSPECTIONS OF NORTH KOREA'S NUCLEAR SITES MR. KAY WAS INCORRECTLY IDENTIFIED AS A FORMER ANALYST FOR THE CENTRAL INTELLIGENCE AGENCY INTERNATIONAL BUSINESS MACHINES CORPORATION BRUISED BY DISAPPOINTING SALES AND PROFITS AND MASSIVE JOB CUTS IS LOOKING TO THE WINTER OLYMPICS NEXT MONTH TO BURNISH ITS IMAGE I. B. M. WILL BE A MAJOR SPONSOR OF THE WINTER GAMES IN LILLEHAMMER NORWAY DURING THE ONE HUNDRED TWENTY HOURS OF TELEVISED COVERAGE FROM FEBRUARY TWELFTH TO FEB TWENTY SEVEN THE ARMONK N. Y. COMPUTER GIANT AND ONE OF ITS ADVERTISING AGENCIES WELLS RICH GREENE B. D. D. P. PRODUCED FOUR CORPORATE ADS EACH STRESSING HOW I. B. M. IS INTEGRAL TO THE OPERATION OF THE OLYMPICS THE CAMPAIGN IS ANOTHER PHASE OF BIG BLUE'S CORPORATE ADVERTISING WHICH FEATURES THE SLOGAN QUOTE THERE'S NEVER BEEN A BETTER TIME TO DO BUSINESS WITH I. B. M. QUOTE THE OBJECTIVE OF THE IMAGE ADS IS TO SHOW HOW I. B. M. CAN AID INDIVIDUAL BUSINESSES FOR THE OLYMPIC ADS I. B. M. WILL CHANGE ITS SLOGAN TO GOLD SILVER BRONZE AND BLUE TELLING I. B. M.'S STORY WE'RE TRYING TO TELL THE STORY OF I. B. M.'S UNIQUE INVOLVEMENT WITH THE OLYMPICS SAYS ABBY KOHNSTAMM VICE PRESIDENT OF CORPORATE MARKETING AT I. B. M. WE'RE DIFFERENT THAN ANY OTHER SPONSOR ADDS JED BERNSTEIN EXECUTIVE VICE PRESIDENT AND ACCOUNT GROUP HEAD AT WELLS RICH UNLIKE AN OFFICIAL SOFT DRINK OR OFFICIAL CANDY BAR I. B. M. WAS SELECTED TO HELP MAKE THE OLYMPICS RUN THAT IS REFLECTED IN THE TWO SIXTY SECOND SPOTS BOTH OF WHICH ARE NARRATED BY ACTOR ROY SCHEIDER IN ONE BLACK AND WHITE FOOTAGE IS USED TO RECALL NINETEEN FIFTY TWO THE LAST TIME THE WINTER GAMES WERE HELD IN NORWAY BACK THEN SCORES AND STATISTICS WEREN'T KEPT ON ANALOG OR DIGITAL EQUIPMENT THE VIEWER IS TOLD INSTEAD THEY WERE MONITORED AND RECORDED BY QUOTE ULF QUOTE ULF SORUM MR. SCHEIDER SAYS USED TO PAINSTAKINGLY WRITE DOWN THE MINUTES AND SECONDS OF EACH ATHLETE'S EVENTS AND PLACE THEM IN THE WINDOW OF A LOCAL SHOP THE SCENE CHANGES TO COLOR AND THE VIEWER LEARNS MR. SORUM IS NOW I. B. M. OPERATIONS MANAGER HANDLING THE SAME THOUSANDS OF RESULTS IN LESS THAN A SECOND BECAUSE OF I. B. M. EQUIPMENT THE AD INCLUDES SHOTS OF DOWNHILL SKIING AMONG OTHER EVENTS ALL THE WHILE MR. SORUM IS CHEERING AS STATISTICIANS WORK AT I. B. M. COMPUTERS THE IDEA FOR THE SPOTS IS TO TAKE THE BEHIND THE SCENE PEOPLE AND MAKE THEIR PERFORMANCES AS EXCITING AS THE EVENTS THEMSELVES SAYS CHARLIE MOSS VICE CHAIRMAN AND CORPORATE CREATIVE DIRECTOR AT WELLS RICH ANOTHER SPOT BOASTS THAT FAR AHEAD OF THE ATHLETES DESCENDING UPON THE OLYMPIC VILLAGE I. B. M. EMPLOYEES PLAN AND DESIGN EVERY EVENT TO ACTUALLY HELP AND MANAGE THE WINTER GAMES IS THE EQUIVALENT OF TWO SUPER BOWLS A DAY FOR SIXTEEN DAYS THE AD CAMPAIGN IS A WAY TO DEMONSTRATE I. B. M.'S CAPABILITIES SAYS MS. KOHNSTAMM A NEW POST OLYMPICS CORPORATE CAMPAIGN MAY BE PRODUCED SHE SAYS BUT THOSE PLANS HAVEN'T BEEN PUT IN MOTION PERHAPS THE NEXT NEW ADVERTISING FROM I. B. M. IS THE MOST ANTICIPATED THE PERSONAL COMPUTER CAMPAIGN FROM MERKLEY NEWMAN HARTY WHICH WON THE COVETED DOMESTIC ADVERTISING ACCOUNT LAST YEAR FROM INTERPUBLIC GROUP'S LINTAS NEW YORK DOW JONES AND COMPANY PUBLISHER OF THE WALL STREET JOURNAL AND ROBERT BARTLEY EDITOR OF THE NEWSPAPER ASKED A FEDERAL COURT TO FORCE THE RELEASE OF REPORTS ON WHITE HOUSE LAWYER VINCENT FOSTER'S DEATH IN A LAWSUIT AGAINST THE JUSTICE DEPARTMENT FILED FRIDAY IN U. S. DISTRICT COURT IN NEW YORK DOW JONES AND MR. BARTLEY WHO OVERSEES THE EDITORIAL AND RELATED PAGES SAID THE AGENCY HAS QUOTE CONSTRUCTIVELY AND IMPROPERLY DENIED QUOTE THEIR FREEDOM OF INFORMATION ACT REQUEST FOR THE DOCUMENTS MR. FOSTER WAS DEPUTY WHITE HOUSE COUNSEL WHEN HE APPARENTLY SHOT HIMSELF IN A PARK OUTSIDE WASHINGTON ON JULY TWENTIETH THE U. S. PARK POLICE RULED IT A SUICIDE USING THE FOIA MR. BARTLEY ON AUGUST EIGHTEENTH REQUESTED REPORTS PREPARED BY THE POLICE AND THE FEDERAL BUREAU OF INVESTIGATION THE REPORTS ARE RECORDS OF SUBSTANTIAL PUBLIC INTEREST AND SHOULD BE AVAILABLE TO THE PRESS AND PUBLIC FOR REVIEW AND DISCUSSION THE SUIT CONTENDS LAST WEEK THE NEW YORK POST REPORTED THAT EMERGENCY PERSONNEL RESPONDING TO MR. FOSTER'S DEATH SAID THE WAY THEY FOUND HIM HOW HE WAS LYING THE LOCATION OF THE GUN AND THE AMOUNT OF BLOOD WASN'T NECESSARILY CONSISTENT WITH SUICIDE FEDERAL OFFICIALS SAID THE DEATH WAS PROBED BY THE POLICE AND A TORN UP NOTE APPARENTLY WRITTEN BY MR. FOSTER AND FOUND IN HIS BRIEFCASE WAS INVESTIGATED BY THE F. B. I. THAT NOTE WHICH SHOWED MR. FOSTER UPSET BY A VARIETY OF THINGS INCLUDED THE SENTENCE THE W. S. J. EDITORS LIE WITHOUT CONSEQUENCE THE JOURNAL HAD RUN SEVERAL EDITORIALS CRITICIZING MR. FOSTER'S ROLE IN THE WHITE HOUSE SINCE HIS DEATH WHITE HOUSE OFFICIALS HAVE REVEALED THAT HIS OFFICE CONTAINED PAPERS CONCERNING THE WHITEWATER DEVELOPMENT CORPORATION INVESTMENT BY BILL AND HILLARY RODHAM CLINTON THOSE PAPERS HAVE BEEN SUBPOENAED BY THE JUSTICE DEPARTMENT AND MATTERS RELATING TO THE INVESTMENT ARE BEING INVESTIGATED BY AN INDEPENDENT COUNSEL APPOINTED BY THE ATTORNEY GENERAL JUSTICE DEPARTMENT SPOKESMAN CARL STERN SAID THE AGENCY IS DOING THE BEST WE CAN TO COMPLY WITH FOIA REQUESTS SOME OF THE MATERIAL WAS CLOSE TO BEING RELEASED MR. STERN SAID BUT THE APPOINTMENT OF AN INDEPENDENT COUNSEL REQUIRED US TO ASCERTAIN FROM HIM WHETHER THE MATERIAL MIGHT BE EVIDENCE IN HIS INVESTIGATION AND WHETHER ITS RELEASE WOULD INTERFERE WITH HIS WORK BANCO ESPANOL DE CREDITO THE BIG COMMERCIAL BANK THAT WAS TAKEN OVER BY THE BANK OF SPAIN ON DECEMBER TWENTY EIGHTH WILL BE RESTORED TO FINANCIAL HEALTH BY THE END OF THE YEAR AND SOLD TO ONE OR MORE SPANISH BANKS SAID BANK OF SPAIN'S GOVERNOR APPEARING ON NATIONAL TELEVISION AFTER SPAIN'S FIVE BIGGEST BANKS AGREED ON A RESCUE PLAN FOR BANESTO AS THE TROUBLED BANK IS CALLED LUIS ANGEL ROJO SAID THE BANK'S SIX HUNDRED FIVE BILLION PESETA FOUR POINT THREE THREE BILLION DOLLARS FINANCIAL SHORTFALL WILL BE COVERED THROUGH ASSET SALES OF TWO HUNDRED EIGHTY FIVE BILLION PESETAS AND A WRITE DOWN OF CAPITAL AND RESERVES OF THREE HUNDRED TWENTY BILLION PESETAS THAT WILL REDUCE THE NOMINAL VALUE OF BANESTO SHARES TO FOUR HUNDRED PESETAS FROM SEVEN HUNDRED PESETAS EACH HE SAID TO RECAPITALIZE BANESTO THE DEPOSIT GUARANTEE FUND WILL SUBSCRIBE TO A ONE HUNDRED EIGHTY BILLION PESETA RIGHTS ISSUE LATER AUCTIONING OFF ITS SHAREHOLDING IN THE BANK CURRENT SHAREHOLDERS WILL BE ENCOURAGED TO PARTICIPATE IN THE CAPITAL INCREASE MR. ROJO SAID THE RESCUE PLAN QUOTE SIGNIFIES A BIG SACRIFICE FOR QUOTE SHAREHOLDERS HE ACKNOWLEDGED BUT IT ALSO SIGNIFIES A BIG SACRIFICE FOR THE REST OF THE COUNTRY WHICH IS GOING TO HAVE TO PUT UP TWO HUNDRED EIGHTY FIVE BILLION PESETAS TO COVER BANESTO'S SO CALLED SHORTFALL UNDER THE COMPLEX PLAN WHICH SHAREHOLDERS WILL BE ASKED TO APPROVE IN MID MARCH BANESTO WILL WRITE OFF RESERVES OF TWO HUNDRED FORTY FOUR BILLION PESETAS AND WRITE DOWN CAPITAL BY FORTY NINE BILLION PESETAS THE BANK WILL ALSO MAKE DEFERRED PROVISIONS OF TWENTY SEVEN BILLION PESETAS BRINGING ITS TOTAL CONTRIBUTION TO THE BAILOUT PROGRAM TO THREE HUNDRED TWENTY BILLION PESETAS ACCORDING TO THE BANK OF SPAIN THE DEPOSIT GUARANTEE FUND WILL PROVIDE THE BANK'S ADDITIONAL FUNDING NEEDS BY ACQUIRING TWO HUNDRED EIGHTY FIVE BILLION PESETAS WORTH OF BANESTO'S ASSETS THE CENTRAL BANK SAID WHILE THE BANK OF SPAIN DIDN'T SPECIFY HOW THE DEPOSIT GUARANTEE FUND IS TO BE FINANCED BANKERS SAID SPANISH COMMERCIAL BANKS WILL GRANT IT A SIX HUNDRED BILLION PESETA LOAN AT MARKET RATES TO ENABLE IT TO ACQUIRE ASSETS FOR THE SAME VALUE FROM BANESTO OF THIS AMOUNT ALL BUT TWO HUNDRED EIGHTY FIVE BILLION PESETAS IN BAD LOANS WILL BE RECOVERED WHEN THE ASSETS ARE LIQUIDATED THE BANKERS SAID THE FUND WILL EVENTUALLY FINANCE HALF OF THE REMAINING TWO HUNDRED EIGHTY FIVE BILLION PESETAS WITH MONEY FROM THE BANKS' ANNUAL CONTRIBUTIONS WHICH WILL BE RAISED TO ZERO POINT TWO PERCENT OF THEIR OWN DEPOSITS FROM ITS CURRENT ZERO POINT ONE FIVE PERCENT AS A RESULT BANKS WILL PAY INTO THE FUND ABOUT THIRTY FIVE BILLION PESETAS A YEAR OR JUST OVER ONE HUNDRED FORTY BILLION PESETAS IN FOUR YEARS THE BANK OF SPAIN SAID IT WILL PROVIDE AN ADDITIONAL ONE HUNDRED FORTY TWO POINT FIVE BILLION PESETAS OVER A PERIOD OF SEVERAL YEARS ONCE BANESTO HAS BEEN RECAPITALIZED THROUGH THE ONE HUNDRED EIGHTY BILLION PESETA SHARE ISSUE IT WILL BE AUCTIONED OFF AS QUICKLY AS POSSIBLE AND IN ANY CASE WITHIN A YEAR WITH THE AUTHORITIES DECIDING IN FAVOR OF THE OFFER THAT PRESENTS THE MOST ADVANTAGEOUS CONDITIONS FOR ACQUISITION THE BANK OF SPAIN SAID NEWS THAT BANESTO WILL BE UP FOR SALE SET OFF A WHIRL OF RUMORS IN MADRID OVER WHICH OF THE FIVE BIG BANKS WOULD MAKE A BID FOR IT SINCE MOST OF BANESTO'S CURRENT MANAGEMENT TEAM IS ON LOAN FROM BANCO BILBAO VIZCAYA OR BBV THE BASQUE BANK HAS BEEN HIGH ON THE LIST OF POSSIBLE CANDIDATES FURTHERMORE ACQUIRING BANESTO WOULD ENABLE BBV TO RECAPTURE ITS POSITION AS SPAIN'S BIGGEST BANK LOST WHEN BANCO CENTRAL HISPANO AROSE THROUGH A MERGER THREE YEARS AGO BUT BBV IS STILL STRUGGLING TO CLOSE OVERLAPPING BRANCH OFFICES INHERITED FROM ITS OWN MERGER SIX YEARS AGO IN FACT BECAUSE ITS TOP LEVEL MANAGEMENT WAS DUPLICATED THROUGH THE MERGER BBV WAS ABLE TO DONATE EXECUTIVES TO BANESTO'S BAILOUT EFFORT THE MOST LIKELY CANDIDATE MANY ANALYSTS THINK IS BANCO SANTANDER ONE OF SPAIN'S MOST PROFITABLE BANKS A LINKUP WITH A FULLY RECOVERED BANESTO WOULD ENABLE SANTANDER TO BECOME THE LEADING PLAYER IN SPANISH BANKING ANOTHER POSSIBLE CANDIDATE IS ARGENTARIA CORPORATION BANCARIA DE ESPANA S. A. THE STATE CONTROLLED BANKING GROUP THAT WAS CREATED IN NINETEEN NINETY ONE DESPITE ITS SOLID FINANCIAL HEALTH THOUGH ARGENTARIA IS LIKELY TO SHY CLEAR OF BANESTO AS IT SEEKS TO BREAK ALL TIES WITH ITS PAST ROLE AS A TOOL OF GOVERNMENT POLICY ANALYSTS SAID ON FRIDAY MARIO CONDE APPEALED THE BANK OF SPAIN'S DECISION A MONTH EARLIER TO REMOVE HIM AS CHAIRMAN OF BANESTO MR. CONDE AND SEVERAL FORMER BANESTO BOARD MEMBERS FILED AN APPEAL WITH THE MINISTRY OF ECONOMY ALLEGING THAT THE BANK OF SPAIN EXAGGERATED THE BANK'S FINANCIAL WOES IN ORDER TO TAKE OVER THE BANK MR. CONDE AND J. P. MORGAN AND COMPANY THE U. S. BANK THAT HELPED ARRANGE A NINETY FIVE BILLION PESETA CAPITAL INCREASE FOR BANESTO LAST YEAR PUT THE BANK'S FINANCIAL SHORTFALL AT TWO HUNDRED SIXTY FOUR POINT FIVE BILLION PESETAS BANESTO'S AUDITORS HOWEVER ESTIMATE THAT THE BANK IS SUFFERING A SHORTFALL OF SIX HUNDRED FIVE BILLION PESETAS THE ONE THOUSAND DOLLARS OR TWO THOUSAND DOLLAR CASH BACK PROMOTION FOR BUYING A NEW CAR PROBABLY WILL ALL BUT DISAPPEAR THIS YEAR AUTO EXECUTIVES AND DEALERS SAY THAT'S BECAUSE THE STRENGTHENING ECONOMY IS EXPECTED TO CONTINUE TO SPUR RISING DEMAND FOR NEW CARS AND LIGHT TRUCKS AND BECAUSE LEASING PROMOTIONS HAVE LARGELY SUPPLANTED REBATES AS A MARKETING TOOL MOREOVER EACH OF THE DOMESTIC MANUFACTURERS IS UNVEILING A SERIES OF NEW PRODUCTS THIS YEAR THAT ARE EXPECTED TO SELL WITHOUT REBATES THE FADEOUT OF REBATES IS CLEARLY GOOD NEWS FOR CAR COMPANIES WHICH DURING THE PAST YEAR HAVE BEGUN CUTTING BACK ON THE INCENTIVES AND CARRYING THE EXTRA DOLLARS THEY DON'T PAY OUT IN REBATES STRAIGHT TO THEIR BOTTOM LINES GENERALLY HIGHER PRICES FOR CAR BUYERS THIS MEANS GENERALLY HIGHER PRICES AND SOME DEALERS REPORT SELLING CERTAIN HIGH DEMAND MODELS ABOVE STICKER PRICES BUT INDUSTRY OFFICIALS AND CAR DEALERS ATTENDING THE NATIONAL AUTO DEALERS ASSOCIATION ANNUAL CONVENTION HERE SAY STIFF COMPETITION AMONG DEALERS IS LIKELY TO KEEP PRICES FROM GETTING TOO FAR OUT OF LINE J. DAVID POWER THE PRESIDENT OF CONSULTING GROUP J. D. POWER AND ASSOCIATES IS WARNING DEALERS HERE FOR THAT REASON NOT TO EXPECT THE SORT OF FAT PROFITS THEY WERE ABLE TO RACK UP DURING PAST RECOVERIES ANOTHER PART OF THE EQUATION EXECUTIVES AND DEALERS MAINTAIN IS THAT THE INDUSTRY IS MOVING TO SET MORE REALISTIC STICKER PRICES IN THE FIRST PLACE MAKING REBATES AND DEEP DISCOUNTS LESS NECESSARY OVER THE WEEKEND GENERAL MOTORS CORPORATION DISCLOSED THAT A STATEWIDE EXPERIMENT IN CALIFORNIA WITH SUCH PRICING HELPED IT WIN MARKET SHARE FROM THE JAPANESE AUTO MAKERS IN THE FOURTH QUARTER OF NINETEEN NINETY THREE TO BE SURE THERE ARE STILL A FEW SIZABLE REBATES AROUND THEY ARE MOSTLY ON OLDER MODELS THAT ARE BEING PHASED OUT AND ON SOME SLOWER SELLING VEHICLES IMPORTED BY JAPANESE AUTO MAKERS WHICH BECAUSE OF THE STRONG YEN FACE PRICE DISADVANTAGES OF ABOUT TWO THOUSAND DOLLARS A CAR BUT THE EXPECTED DECLINE OF REBATES MARKS A SHARP SWITCH FROM THE MARKETING STRATEGIES OF RECENT YEARS PARTICULARLY FOR THE REBATE HAPPY BIG THREE AUTO MAKERS QUOTE WE TRAINED PEOPLE TO EXPECT REBATES QUOTE CONCEDES ROY ROBERTS A GENERAL MOTORS VICE PRESIDENT WHO IS GENERAL MANAGER OF THE G. M. C. TRUCK DIVISION NOW WE WILL HAVE TO UNTRAIN THEM HIS DIVISION ALREADY HAS DROPPED ALMOST ALL ITS CASH BACK PROMOTIONS SO HAS G. M.'S HUGE CHEVROLET DIVISION WE USED TO PUT SEVEN HUNDRED FIFTY DOLLARS ON THE HOOD OF EVERY FULL SIZED PICKUP SAYS JIM C. PERKINS THE CHEVY GENERAL MANAGER BUT WE HAVEN'T HAD A REBATE ON THEM IN OVER A YEAR HE ADDS THAT AFTER CHEVY INTRODUCES ITS NEW CAVALIER SUBCOMPACTS MONTE CARLO COUPES AND LUMINA SEDANS LATER THIS YEAR BUYERS WILL BE HARD PRESSED TO FIND A REBATE ON CHEVIES THE BIG CASH BACK INCENTIVES ARE DWINDLING AWAY THIS YEAR SAYS ROBERT L. REWEY FORD MOTOR COMPANY'S SALES AND MARKETING CHIEF ADDS ALEX J. TROTMAN FORD'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER LAST YEAR WE HAD FIVE VEHICLES WITH NO INCENTIVES ON THEM THIS YEAR WE HOPE IT'LL BE TEN QUOTE CAR DEALERS SAY THEY ARE VERY HAPPY TO SEE REBATES DISAPPEARING WE'RE GETTING AWAY FROM THE ENORMOUS DISCOUNTS AND REBATES WHICH HAVE HURT OUR CREDIBILITY SAYS GERALD J. SEINER A SALT LAKE CITY DEALER WHO SELLS G. M. NISSAN MITSUBISHI AND OTHER PRODUCTS THAT IS THE THINKING BEHIND THE INDUSTRY'S EXPERIMENTS WITH VALUE PRICING THE PRACTICE OF OFFERING CARS EQUIPPED WITH A POPULAR PACKAGE OF OPTIONAL EQUIPMENT FOR A LOWER STICKER PRICE THAN IF A CUSTOMER ORDERED EACH ITEM SEPARATELY SUCH PACKAGES TYPICALLY HAVE A LOWER DEALER PROFIT MARGIN BUILT INTO THE PRICE ON THE THEORY THAT CUSTOMERS WILL VIEW THE STICKER PRICE AS A BARGAIN AND DO VERY LITTLE DICKERING IN AN EFFORT TO REVERSE ITS SLIDE IN THE CALIFORNIA MARKET G. M. LAST YEAR LAUNCHED A BROAD EXPERIMENT WITH SUCH PRICING OFFERING FORTY SIX VALUE PRICED CAR AND TRUCK MODELS IN CALIFORNIA COMPARED WITH TWENTY THREE NATIONALLY DURING THE FINAL THREE MONTHS OF NINETEEN NINETY THREE G. M. SAID ITS RETAIL SALES EXCLUDING FLEET SALES IN CALIFORNIA ROSE THIRTY POINT SIX PERCENT COMPARED WITH A TOTAL INDUSTRY RISE OF JUST SEVEN POINT FIVE PERCENT G. M. SAID ITS RETAIL SALES NATIONALLY ROSE EIGHTEEN POINT ONE PERCENT DURING THE SAME PERIOD I COULDN'T BE MORE PLEASED WITH THE WAY IT HAS STARTED SAYS J. MICHAEL LOSH A G. M. VICE PRESIDENT WHO IS G. M.'S CHIEF OF NORTH AMERICAN SALES SERVICE AND MARKETING WE'RE CONVINCED THIS IS THE WAY TO GO THAT IS SHOWING UP IN OUR RESULTS NATIONWIDE G. M. SAID ITS SHARE OF THE CALIFORNIA RETAIL MARKET IN THE FOURTH QUARTER ROSE THREE POINT EIGHT PERCENTAGE POINTS TO TWENTY ONE POINT FIVE PERCENT FORD GAINED JUST OVER ONE PERCENTAGE POINT TO TWENTY FIVE PERCENT CHRYSLER LOST LESS THAN A POINT TO NINE POINT NINE PERCENT AND IMPORTS AS A GROUP MOSTLY JAPANESE DROPPED FOUR POINT TWO POINTS TO FORTY THREE POINT SIX PERCENT ACCORDING TO G. M. SHORT INTEREST ON THE NASDAQ STOCK MARKET A GENERALLY BEARISH INDICATOR SET A RECORD FOR THE TWELFTH CONSECUTIVE MONTH IN MID JANUARY JUMPING ONE POINT FIVE PERCENT TO SIX HUNDRED EIGHTY TWO POINT FOUR MILLION SHARES FROM MID DECEMBER'S SIX HUNDRED SEVENTY TWO MILLION THE YEAR LONG CLIMB IN UNCOVERED SHORT POSITIONS IS A GROWING INDICATOR THAT INVESTORS ARE EXPECTING A LARGE NUMBER OF NASDAQ STOCKS FROM GIANTS SUCH AS M. C. I. COMMUNICATIONS CORPORATION INTEL CORPORATION AND APPLE COMPUTER INCORPORATED TO MIDSIZE COMPANIES SUCH AS CANADIAN SOFT DRINK MAKER COTT CORPORATION TO FALL APPLE FOR EXAMPLE SAW ITS SHORT INTEREST POSITION SURGE ONE HUNDRED THIRTY SEVEN POINT ONE PERCENT TO SIX POINT TWO MILLION SHARES FROM TWO POINT SIX MILLION A MONTH EARLIER MARKING THE LARGEST VOLUME INCREASE ON NASDAQ FOR THE PERIOD SHORT SALES ARE BETS THAT A STOCK WILL TUMBLE AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY MUST EVENTUALLY BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST IS THE TOTAL OF SHARES SOLD SHORT AT ANY POINT AND NOT YET COVERED THIS MONTH'S FIGURES REPRESENT SALES REPORTED AS OF JANUARY FOURTH AND SETTLED AS OF JANUARY FOURTEENTH SHORT INTEREST ON THE NASDAQ NATIONAL MARKET COMPRISING THE LARGER CAPITALIZATION ISSUES CLIMBED LESS THAN ONE PERCENT TO SIX HUNDRED THIRTY FIVE POINT THREE MILLION SHARES FROM SIX HUNDRED THIRTY POINT FOUR MILLION A MONTH EARLIER TELECOMMUNICATIONS TECHNOLOGY AND CONSUMER NONDURABLE STOCKS WERE AGAIN AMONG THOSE WITH THE LARGEST SHORT POSITIONS SHORT SELLING AMONG THE SMALL CAPITALIZATION STOCKS WHICH MAKE UP ABOUT A THIRD OF THE NASDAQ MARKET CLIMBED THIRTEEN PERCENT TO FORTY SEVEN POINT ONE MILLION SHARES FROM FORTY ONE POINT SIX MILLION A MONTH EARLIER THE NATIONAL MARKET'S SHORT INTEREST RATIO AS OF MID JANUARY FELL TO TWO POINT TWO SIX FROM TWO POINT FIVE SEVEN THE SHORT INTEREST RATIO FOR THE SMALLEST NASDAQ STOCKS ROSE TO ZERO POINT NINE TWO FROM ZERO POINT EIGHT SEVEN THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS VIEWED AS A MEASURE OF TRADER SENTIMENT AMONG THE COMPANIES WITH THE LARGEST SHORT INTEREST POSITIONS AMERICAN POWER CONVERSION CORPORATION'S FELL FIVE PERCENT TO TWELVE POINT TWO MILLION SHARES COMCAST CORPORATION'S CLASS A SPECIAL SHARES JUMPED THIRTEEN POINT THREE PERCENT TO ELEVEN POINT EIGHT MILLION SHARES M. C. I.'S ROSE TWENTY NINE PERCENT TO NINE POINT NINE MILLION SHARES WHILE SNAPPLE BEVERAGE CORPORATION'S FELL THREE POINT TWO PERCENT TO NINE POINT EIGHT MILLION FOLLOWING APPLE THE NASDAQ STOCKS WITH THE LARGEST VOLUME INCREASE IN SHORT INTEREST WERE TELECOMMUNICATIONS GROUPS L. M. ERICSSON TELEPHONE COMPANY WHICH TRADES AS AN AMERICAN DEPOSITARY RECEIPT AND L. D. D. S. COMMUNICATIONS INCORPORATED ERICSSON'S SHORT INTEREST SOARED TO THREE POINT FIVE MILLION SHARES FROM ELEVEN THOUSAND FOUR HUNDRED FIFTY FIVE A MONTH AGO WHILE L. D. D. S. POSITION MORE THAN DOUBLED TO FIVE POINT FOUR MILLION SHARES FROM TWO POINT FOUR MILLION THE FOLLOWING TABLE SHOWS THE NASDAQ ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST ONE HUNDRED THOUSAND SHARES EXISTED AT MID JANUARY OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST FIFTY THOUSAND SHARES SINCE MID DECEMBER BRITISH SUPERMARKET CHAIN J. SAINSBURY P. L. C. WAS LATE GETTING INTO THE DISCOUNTING GAME AND THAT'S WHAT LED TO THE DISAPPOINTING SALES FIGURES THE COMPANY REPORTED FRIDAY INDUSTRY ANALYSTS SAID SAINSBURY STOCK SANK NINE POINT SIX PERCENT TO FINISH AT THREE HUNDRED NINETY FIVE PENCE FIVE DOLLARS AND NINETY SIX CENTS IN LONDON TRADING FOLLOWING ITS REPORT THAT SALES IN STORES OPEN AT LEAST ONE YEAR FELL ONE PERCENT IN THE SIXTEEN WEEK PERIOD ENDED JANUARY FIFTEENTH SAINSBURY THE UNITED KINGDOM'S BIGGEST GROCER WAS SLOW TO REALIZE THAT QUALITY ALONE NO LONGER CREATES LOYAL CUSTOMERS IN THE FOOD BUSINESS ANALYSTS SAID THE COMPANY MADE A CRUCIAL ERROR IN BELATEDLY ACCEPTING THAT LOWER FOOD PRICES ARE A PERMANENT PHENOMENON RATHER THAN A QUIRK OF ECONOMIC RECESSION QUOTE EVERYONE IS AWARE NOW THAT IF THEY SHOP AROUND THEY CAN FIND CHEAP FOOD QUOTE SAID NIGEL DAVIES ANALYST AT ROBERT FLEMING SECURITIES LIMITED THAT'S FASHIONABLE NOW IT DIDN'T USED TO BE HIGHER SALES SOME ANALYSTS HAD EXPECTED ABOUT A THREE PERCENT GAIN HAD BEEN EXPECTED TO MAKE UP FOR THE LOWER GROSS PROFIT MARGINS RESULTING FROM SAINSBURY'S ESSENTIAL FOR ESSENTIALS CAMPAIGN SAINSBURY LAUNCHED THE PERMANENT PRICE CUTS ON A WIDE VARIETY OF BASIC FOODS AFTER ITS MARKET SHARE CAME UNDER ATTACK FROM A STRING OF COMPETITORS ALREADY ENGROSSED IN A PRICE WAR INSTEAD GROSS MARGIN FELL ALONG WITH SALES SAINSBURY DOESN'T DIVULGE EXACT PROFIT MARGINS BUT SAID ITS GROSS MARGIN DECLINED ZERO POINT FOUR PERCENT THE COMPANY SAID IT DOESN'T EXPECT MARGINS TO DECLINE FURTHER ANALYSTS WHO FOLLOW SAINSBURY WERE CUTTING PROFIT FORECASTS FOR THE CURRENT FISCAL YEAR AND FOR FISCAL NINETEEN NINETY FIVE TO INCLUDE ACCOUNTING CHANGES DEPRECIATION COSTS AND CURRENT TRADING CONDITIONS DISCLOSED IN FRIDAY'S REPORT SAINSBURY SAID IT WILL TAKE THREE HUNDRED SIXTY FIVE MILLION POUNDS FIVE HUNDRED FIFTY MILLION DOLLARS OFF ITS PROFIT FOR THE FISCAL YEAR ENDING MARCH THIRTY FIRST NINETEEN NINETY FOUR TO REFLECT EXCESS PROPERTY COSTS AND THE REDUCTION IN THE VALUE OF SURPLUS AND NON TRADING PROPERTIES ANALYSTS ARE REVISING THEIR CURRENT YEAR FORECASTS FOR ONGOING PRETAX PROFIT TO ABOUT SEVEN HUNDRED FORTY MILLION POUNDS FROM EIGHT HUNDRED MILLION POUNDS THE FORECASTS DON'T INCLUDE THE ONE TIME THREE HUNDRED SIXTY FIVE POUND MILLION WRITE OFF THE DECLINE REFLECTS AN EXPECTED FORTY MILLION POUND CUT FOR DEPRECIATION COSTS AND ADDITIONAL DOWNGRADING TO SHOW LOWER SALES AND GROSS PROFIT MARGIN EXPECTATIONS FOR THE FOLLOWING YEAR ANALYSTS EXPECT FORTY FIVE MILLION POUNDS IN DEPRECIATION COSTS THEY'RE ALSO CUTTING AN ADDITIONAL ONE HUNDRED MILLION POUNDS TO ONE HUNDRED THIRTY FIVE MILLION POUNDS OFF THE ONGOING PRETAX PROFIT TO ACCOUNT FOR WEAKER TRADING THE CONSENSUS HAD BEEN AROUND EIGHT HUNDRED FIFTY MILLION POUNDS PRESIDENT WILLIAM JEFFERSON CLINTON GAVE A BARNBURNER OF A STATE OF THE UNION SPEECH JUDGING FROM THE GLIMPSES AVAILABLE TO THOSE OF US WHO LIVE ABROAD THIS IS A PRESIDENT WHO FEELS HE IS ON A ROLL AN ATTITUDE THAT ANY FOOTBALL COACH COULD TELL HIM IS FRAUGHT WITH DANGER FOR THAT MATTER GEORGE BUSH COULD WARN THAT BEING POPULAR AFTER ONE YEAR IN OFFICE GUARANTEES NOTHING AT ALL MR. BUSH EMPLOYED A SPLENDID MILITARY ORGANIZATION INHERITED FROM HIS PREDECESSOR TO WIN A WAR OF VITAL IMPORTANCE TO OIL CONSUMING NATIONS HIS POLL RATINGS SOARED MR. CLINTON HAD THE GOOD LUCK TO GAIN THE OVAL OFFICE AT THE ONSET OF ECONOMIC RECOVERY THANKS TO CONGRESS HE DID NO SERIOUS DAMAGE TO THE UPSWING IN HIS FIRST YEAR IT IS PERHAPS TOO MUCH TO ASK OF ANY POLITICIAN THAT HE NOT TAKE CREDIT FOR ANYTHING GOOD THAT HAPPENS ON HIS WATCH SO AMERICANS WILL JUST HAVE TO GRIN AND BEAR IT WHILE MR. CLINTON BOASTS ABOUT HOW HE RESTORED PROSPERITY THE WHITE HOUSE DISPLAYING A REMARKABLE TALENT FOR COURTING TROUBLE CHASTISED EDITORS OF THE WASHINGTON POST LAST YEAR FOR QUOTING A DREYFUS CORPORATION ECONOMIST AS SAYING THAT THE ECONOMIC RECOVERY WOULD HAVE OCCURRED QUOTE EVEN IF BUGS BUNNY HAD BEEN ELECTED PRESIDENT QUOTE AT LEAST THE MAN DIDN'T SAY BUGS BUNNY WOULD HAVE DONE BETTER SO WHAT WAS ALL THE FUSS ABOUT INDEED MR. CLINTON AFTER BEGINNING HIS TERM MAKING SCARY PROTECTIONIST NOISES DID SOME POSITIVE THINGS FOR THE ECONOMY STIFF ARMING ORGANIZED LABOR HE PUT HIS WEIGHT BEHIND THE NAFTA AND URUGUAY ROUND TRADE LIBERALIZATION DEALS THUS RE ESTABLISHING THE PRINCIPLE THAT AMERICA IS ESSENTIALLY A FREE TRADE COUNTRY CLEARLY THE VOTERS APPROVED OPINION POLLS SHOW IT WAS AN IMPORTANT VICTORY OVER ROSS PEROT DICK GEPHARDT AND THEIR ILK THE PRESIDENT ALSO SET AL GORE TO WORK REINVENTING GOVERNMENT AND IF ANY SIGNIFICANT ECONOMIC DEREGULATION OR PAPERWORK REDUCTION COMES OF IT THE CLINTON GORE TEAM WILL DESERVE FURTHER APPLAUSE WITH THOSE ACHIEVEMENTS BEHIND HIM MR. CLINTON IS IN REMARKABLY GOOD SHAPE POLITICALLY FOR A PRESIDENT WHOSE RECORD OTHERWISE IS STREWED WITH BROKEN CROCKERY THE BEDROOM AND BOARDROOM SHENANIGANS OF HIS ARKANSAS PAST ARE NOT GOING TO BE BRUSHED ASIDE AS EASILY AS THE PRESIDENT'S SPIN DOCTORS HAD HOPED HIS FOREIGN POLICY TEAM IS SO WEAK THAT AMERICANS CAN ONLY HOPE THAT NO REALLY SERIOUS THREAT TO U. S. SECURITY PRESENTS ITSELF IN NINETEEN NINETY FOUR THE FRENCH HAVE BEEN AWARDED NATO AND THE RUSSIANS AN INVITATION TO RESTORE THE OLD SOVIET EMPIRE SOMALIAN AND HAITIAN MOBS FACED DOWN THE U. S. MILITARY BOSNIA CONTINUES TO BLEED AND NORTH KOREA BUILDS BOMBS WITH IMPUNITY BUT AS EVERY POLITICIAN KNOWS AN ECONOMIC RECOVERY CAN DO WONDERS TO KEEP THE VOTERS CONTENT JUDGING FROM OPINION POLLS AND INFORMAL SAMPLINGS OF VOTER ATTITUDES MOST AMERICANS WILL OVERLOOK THE PRESIDENT'S SHORTCOMINGS SO LONG AS THE RECOVERY CONTINUES WHICH IS OF COURSE THE CRUCIAL QUESTION WILL IT CONTINUE THE SHORT ANSWER IS THAT YES IT PROBABLY WILL AT LEAST THROUGH MOST OF THIS YEAR UNLESS THERE IS AN OUTBURST OF INFLATION OR A STOCK MARKET CRASH OR BOTH ECONOMIC CYCLES ARE POWERFUL THINGS IT TOOK THIS ONE A LONG TIME TO GET ROLLING BUT IT NOW HAS SOME STEAM AS WAS EVIDENCED BY THE NEARLY SIX PERCENT GROWTH RATE IN THE FOURTH QUARTER LAST YEAR THE ASSET DEFLATION THAT LET THE AIR OUT OF REAL ESTATE VALUES AND LEFT HOMEOWNERS AND THEIR BANKERS FEELING POOR AS THE DECADE BEGAN HAS MOSTLY RUN ITS COURSE FROM ALL APPEARANCES HOUSEHOLD AND BANK BALANCE SHEETS ARE HEALTHIER AND CONSUMERS ARE CONFIDENT AGAIN AS IS EVIDENCED BY VIGOROUS SPENDING FOR USED HOMES AND NEW AUTOS THE INFLATION RATE IS LOW AND THE STOCK MARKET IS ZOOMING UPWARD AS THE DREYFUS MAN SAID BILL CLINTON HAD ABSOLUTELY NOTHING TO DO WITH ANY OF THIS GEORGE BUSH DIDN'T HAVE MUCH TO DO WITH IT EITHER BUT NEITHER OF THEM HAVE INTERFERED SERIOUSLY IN THE LAST TWO YEARS WITH THE FORCES THAT BROUGHT IT ABOUT FORCES THAT INCLUDED VIGOROUS STEPS BY BUSINESS MANAGERS TO REORGANIZE THEIR COMPANIES TO SHARPLY IMPROVE PRODUCTIVITY MR. CLINTON'S TAX INCREASES WILL DIMINISH INCENTIVES FOR SOME OF THE COUNTRY'S MOST PRODUCTIVE CITIZENS AND WILL IMPACT RETIREES BUT HIS TAX AND SPENDING AMBITIONS WERE SUFFICIENTLY MODIFIED BY CONGRESS TO LIMIT DAMAGE TO THE NINETEEN NINETY THREE RECOVERY YET IT IS AT THE VERY MOMENT OF UNDESERVED TRIUMPHS THAT A PRESIDENT SHOULD BE MOST WORRIED IT IS NEXT YEAR'S STATE OF THE UNION ADDRESS THAT HE SHOULD BE THINKING ABOUT NOW HOW THE VOTERS FEEL THEN AND IN THE YEAR AFTER WILL BE THE REAL TEST OF HIS PRESIDENCY ON THAT SCORE THE PRESIDENT'S ADDRESS LAST WEEK WAS NOT ESPECIALLY ENCOURAGING HIS PROMISE TO PUT ALL THE MAJESTY OF HIS OFFICE BEHIND HIS NATIONAL HEALTH PLAN AND WIELD THE VETO IF HE DOESN'T GET WHAT HE WANTS HAS SPECIAL RESONANCE IN EUROPE HERE THERE IS EVERY REASON TO WONDER WHY A PRESIDENT SEEKING CURES SHOULD BE EMBRACING THE DISEASE WESTERN EUROPE'S NATIONAL ECONOMIES ARE WALLOWING IN RECESSION AND DEBT WITH UNEMPLOYMENT HOVERING AROUND ELEVEN PERCENT THE ONE THING THAT DISTINGUISHES THESE WELFARE STATES FROM THE U. S. WELFARE STATE IS NATIONAL HEALTH THEY ALREADY HAVE THE KIND OF ALL ENCOMPASSING GOVERNMENT CONTROLLED BUREAUCRATIC HEALTH CARE SYSTEMS THE PRESIDENT SEEKS IN THE U. S. ONLY ABOUT FORTY PERCENT OF HEALTH CARE IS GOVERNMENT CONTROLLED THROUGH MEDICARE FOR THE ELDERLY AND MEDICAID FOR THE NEEDY IF YOU ASK EUROPEANS HOW THEY FEEL ABOUT FREE HEALTH CARE MANY WILL SAY IT'S NICE UNLESS THEY HAVE BEEN IN AN ITALIAN HOSPITAL LATELY OR BEEN PUT ON A SIX MONTHS WAITING LIST FOR SURGERY IN ENGLAND IF YOU ASK THEM HOW THEY FEEL ABOUT HIGH TAXES AND INSOLVENT GOVERNMENTS THEY SAY IT'S TERRIBLE YET THE TWO THINGS ARE INEXTRICABLY LINKED FOR EXAMPLE NATIONAL HEALTH SWALLOWS SOME FORTY PERCENT OF ITALY'S DIRECT TAXATION EVEN THOUGH HALF THE COUNTRY NOW RESORTS TO PRIVATE CARE PART OF THE TIME EUROPE'S POLITICIANS KNOW THAT NATIONAL HEALTH ISN'T FREE EVERY WESTERN EUROPEAN GOVERNMENT IS TRYING TO CUT ITS COSTS COURTING UNPOPULARITY IN THE PROCESS SWEDEN IS TRYING TO TOTALLY OVERHAUL THE WELFARE STATE TO STAVE OFF NATIONAL BANKRUPTCY TO PAY FOR NATIONAL HEALTH MR. CLINTON PROMISES TO REFORM THE AMERICAN SYSTEM OF WELFARE DOLES IT'S A TIDY IDEA BUT LOTS OF LUCK STATE GOVERNORS FIGURE HE WILL SIMPLY DUMP MOST OF THE COST ON THEM AN ARKANSAS STATE TROOPER HAS BEEN QUOTED AS HAVING HEARD THE FORMER GOVERNOR SAY HE HAD NEVER MET A TAX HE DIDN'T LIKE COME BACK TO EUROPE BILL AND MEET SOME TAXES NOBODY LIKES TALK WITH NATIONAL LEADERS ABOUT VOTER REVOLTS AND PROSPECTIVE LOSS OF THEIR JOBS IT'S A GOOD CURE FOR HUBRIS THERE IS A WIDE GENDER GAP IN EDUCATION IN MANY COUNTRIES AROUND THE WORLD A NEW STUDY SHOWS THE STUDY BY POPULATION ACTION INTERNATIONAL A FAMILY PLANNING GROUP RANKED ONE HUNDRED TWELVE COUNTRIES AND FOUND SIGNIFICANT DIFFERENCES IN MALE FEMALE ENROLLMENT IN FIFTY OF THEM IT FOUND THAT SEVENTY SIX MILLION FEWER GIRLS THAN BOYS ENROLLED IN PRIMARY AND SECONDARY SCHOOLS IN THOSE COUNTRIES IN NINETEEN NINETY THE GENDER GAP IS LARGEST IN SUB SAHARAN AFRICA NORTH AFRICA SOUTH ASIA AND THE MIDDLE EAST IN INDIA ALONE THIRTY THREE MILLION FEWER GIRLS THAN BOYS ARE ENROLLED IN SCHOOL ACCORDING TO THE STUDY QUOTE IN MANY DEVELOPING COUNTRIES GIRLS TAKE A BACK SEAT TO BOYS IN ACCESS TO SCHOOLING QUOTE SAID SHANTI CONLY THE GROUP'S RESEARCH DIRECTOR PARENTS OFTEN GIVE PRIORITY TO THEIR SONS' EDUCATION THE STUDY SAID BECAUSE THEY THINK IT WILL BRING THE FAMILY GREATER ECONOMIC BENEFITS GIRLS DROP OUT MORE OFTEN TO HELP AT HOME TO GET MARRIED OR BECAUSE THEY GET PREGNANT IT SAID WOMEN'S LOW EDUCATION LEVELS CONTRIBUTE TO HIGH INFANT MORTALITY RATES THE GROUP SAID ESTIMATING THAT EACH ADDITIONAL YEAR OF SCHOOLING FOR GIRLS IS ASSOCIATED WITH A FIVE PERCENT TO TEN PERCENT DECLINE IN CHILD DEATHS CLOSING THE GENDER GAP WOULD COST SIX POINT FIVE BILLION DOLLARS IT SAID THE FIFTY COUNTRIES NOW SPEND A TOTAL OF FORTY ONE BILLION DOLLARS ON EDUCATION GIRLS GET THE LEAST AMOUNT OF SCHOOLING IN CHAD WHERE ADULT WOMEN HAVE AN AVERAGE OF LESS THAN ONE MONTH OF EDUCATION ACCORDING TO THE STUDY THERE ARE ONLY TWENTY TWO FEMALES FOR EVERY ONE HUNDRED MALES ATTENDING HIGH SCHOOL THERE THE REPORT SAID AND IN AFRICA THE NUMBER OF MALES ENROLLED IN SCHOOL IS ALSO QUITE LOW IN MALI FOR INSTANCE ONLY THIRTY PERCENT OF BOYS WERE ENROLLED IN GRADE SCHOOL AND NINE PERCENT IN HIGH SCHOOL FRANCE SCORED HIGHEST AMONG THE ONE HUNDRED TWELVE COUNTRIES ON THE GROUP'S EDUCATION INDEX WHICH RATED COUNTRIES ON FIVE MEASURES NEARLY ALL FEMALES IN FRANCE ATTEND HIGH SCHOOL AND WOMEN HAVE AN AVERAGE OF MORE THAN ELEVEN YEARS OF EDUCATION AMERICAN WOMEN HAD THE HIGHEST NUMBER OF YEARS OF SCHOOLING AN AVERAGE OF TWELVE POINT FOUR YEARS BUT THE U. S. RANKED SIXTH ON THE STUDY'S OVERALL FEMALE EDUCATION INDEX IN PART BECAUSE IT HAD A SLIGHTLY LOWER RATIO OF FEMALES TO MALES IN HIGH SCHOOL FRANCE CANADA FINLAND NORWAY AND BELGIUM ALL WERE RATED SLIGHTLY HIGHER THAN THE U. S. TURMOIL IN THE MEDICAL INDUSTRY IS PRODUCING SOME BIG NEW WINNERS HEALTH CARE CONSULTANTS HOSPITALS AND HEALTH MAINTENANCE ORGANIZATIONS ARE RUSHING TO HIRE STRATEGY ADVISERS SOMETIMES AT FEES TOPPING ONE MILLION DOLLARS THE CONSULTANTS ARE FINDING AMPLE WORK PUTTING MERGERS TOGETHER AND SOME MAY EVEN BE FUELING THE CONSOLIDATION TREND BY THE ADVICE THEY WHISPER INTO CHIEF EXECUTIVES' EARS QUOTE A LOT OF PEOPLE SEE CHANGE HAPPENING RAPIDLY AND THEY'RE FRIGHTENED QUOTE SAYS ERAN BROSHY HEAD OF THE HEALTH CARE PRACTICE AT BOSTON CONSULTING GROUP THEY WONDER HOW DO I PROTECT WHAT I'VE GOT THE BEST ANSWER MR. BROSHY SAYS IS TO BECOME A MORE INTEGRATED DELIVERY SYSTEM EITHER THROUGH ACQUISITIONS MERGERS OR JOINT VENTURES THERE ISN'T ANY COMPREHENSIVE DATA ON HOW MANY HEALTH CARE CONSULTANTS ARE ROAMING THROUGH U. S. HOSPITALS AND OTHER MEDICAL SITES BUT ALL SIX OF THE LEADING U. S. ACCOUNTING FIRMS HAVE SET UP HEALTH CARE CONSULTING UNITS OF ONE HUNDRED PEOPLE OR MORE GENERAL CORPORATE STRATEGY CONSULTANTS SAY HEALTH CARE IS ONE OF THEIR FASTEST GROWING FIELDS AND HOSPITAL EXECUTIVES FIGURE AT LEAST TWO DOZEN HEALTH CARE CONSULTING BOUTIQUES HAVE ESTABLISHED A NATIONAL PRESENCE WITHIN THE PAST FIVE YEARS ADVISING ON HEALTH CARE MERGERS IS A HUGE OPPORTUNITY SAYS DAVID KNOTT A CONSULTANT AT BOOZ ALLEN HAMILTON INCORPORATED IN NEW YORK IT'S GROWING LIKE GANGBUSTERS BOOZ ALLEN IS URGING CLIENTS TO COMBINE DOCTORS HOSPITALS AND INSURANCE UNDER ONE ROOF A CONCEPT THAT IT HAS LABELED THE MEDICAL SERVICE COMPANY SIMILAR MESSAGES ARE COMING FROM SWARMS OF OTHER CONSULTANTS AT ACCOUNTING FIRMS AND HEALTH CARE BOUTIQUES QUOTE THE ONLY WAY FOR HOSPITALS TO BE SUCCESSFUL GOING FORWARD IS TO PARTICIPATE IN THE SHIFT TOWARD AMBULATORY CARE QUOTE SAYS JOHN GANNON A SHORT HILLS N. J. CONSULTANT AT K. P. M. G. PEAT MARWICK THAT MEANS SPREADING GEOGRAPHICAL REACH TO BROADER MARKETS AND DEVELOPING REFERRAL LINKS THAT CAN HOOK BACK TO THE HUB INSTITUTION WHILE CONSULTANTS BEAT THE DRUMS FOR MORE DEALS THOUGH SOME INDUSTRY WATCHERS WORRY THAT NONSTOP RECOMMENDATIONS FOR MERGERS COULD PROVE EXCESSIVE MUCH LIKE WALL STREET'S OVERLEVERAGING OF INDUSTRIAL COMPANIES IN THE NINETEEN EIGHTIES PEOPLE ARE CAUGHT UP BY THE NEED TO PICK A PARTNER SAYS CASEY NOLAN A WASHINGTON BASED HEALTH CARE CONSULTANT AT ERNST AND YOUNG THERE'S ALMOST A PALPABLE PANIC IT'S KIND OF REMINISCENT OF LEVERAGED BUYOUTS PEOPLE SEE SOMETHING ON THE COVER OF MODERN HEALTHCARE MAGAZINE AND THEY'VE GOT TO TRY IT FOR NOW SUCH CAUTIONARY VOICES ARE RARE IN THE PAST WEEK SAYS BOSTON CONSULTING'S MR. BROSHY THREE MAJOR TEACHING HOSPITALS HAVE CALLED US OUT OF THE BLUE TO TALK ABOUT RETHINKING THEIR FUNCTION HE SAYS HIS FIRM'S HEALTH CARE PRACTICE IS GROWING ABOUT THIRTY PERCENT A YEAR AND ALREADY ACCOUNTS FOR NEARLY ONE FIFTH OF THE CONSULTING FIRM'S OVERALL WORK IF HEALTH CARE PROVIDERS TAKE THE CONSULTANTS' ADVICE TO CONSOLIDATE THEY CAN HELP CUT COSTS AS MUCH AS TWENTY PERCENT BOOZ ALLEN CONTENDS SOME GAINS WILL COME FROM ECONOMIES OF SCALE IN ADMINISTRATIVE AREAS SUCH AS RECORD KEEPING BILLING AND COMPUTER SERVICES IT SAYS OTHER SAVINGS WILL COME FROM A GREATER ABILITY TO CHANGE DOCTORS' PRACTICE PATTERNS AND REWARD FRUGAL CARE ANOTHER ARGUMENT OFTEN CITED BY CONSULTANTS IS A BELIEF THAT HOSPITALS AND OTHER HEALTH CARE PROVIDERS MUST BUILD UP CRITICAL MASS TO BETTER NEGOTIATE WITH LARGE INSURERS AND HEALTH MAINTENANCE ORGANIZATIONS BIG BUYERS OF HEALTH CARE WANT TO STEER PATIENTS TO THE MEDICAL CENTERS THAT PROVIDE THE MOST COST EFFECTIVE CARE SAYS ROBERT RUBIN PRESIDENT OF LEWIN VHI INCORPORATED BUT SOME CONSULTANTS SAY THEY ARE STARTING TO WORRY THAT NOT ALL MERGERS WILL NECESSARILY WORK OUT QUOTE IT'S VERY TEMPTING TO PUT A MEDICAL SERVICES COMPANY MODEL ON THE TABLE BUT YOU REALLY HAVE TO GO CLIENT BY CLIENT QUOTE SAYS ROBERT GO A DETROIT BASED CONSULTANT FOR DELOITTE AND TOUCHE IN SOME CASES IT ISN'T CLEAR WHAT YOU GET OUT OF A FULL MERGER VERSUS SETTING UP A SIGNIFICANT BUSINESS RELATIONSHIP MR. GO SAYS HE HAS SEEN CASES WHERE MERGERS DON'T HELP HOSPITALS LOWER COSTS AND END UP CREATING BUREAUCRATIC GRIDLOCK AS A RESULT HIS FIRM SOMETIMES COUNSELS CLIENTS TO STOP SHORT OF A MERGER MR. GO SAYS DELOITTE RECENTLY HELPED HENRY FORD HEALTH SYSTEM NEGOTIATE A CLOSER AFFILIATION WITH BLUE CROSS OF MICHIGAN AND HELPED BLUE SHIELD OF CALIFORNIA NEGOTIATE AN AFFILIATION WITH UNIHEALTH AMERICA INCORPORATED AFTER MERGER TALKS BROKE DOWN CONSULTANTS DON'T DISCLOSE FEES PUBLICLY BUT SOME SAY PRIVATELY THAT THEY CAN EARN FIVE HUNDRED THOUSAND DOLLARS OR MORE FOR ADVISING A MIDSIZED HOSPITAL ON A STRATEGIC OVERHAUL THAT CULMINATES IN A MERGER WORKING WITH THE NATION'S BIGGEST HOSPITALS CAN SOMETIMES BRING IN FEES THAT TOP ONE MILLION DOLLARS WHILE THOSE AMOUNTS DON'T MATCH WHAT INVESTMENT BANKERS COLLECT FOR CORPORATE TAKEOVERS THEY ARE HEFTY ENOUGH TO KEEP CONSULTANTS SEEKING OPPORTUNITIES IN ONE NOTABLE CASE THE UNIVERSITY OF PENNSYLVANIA HEALTH SYSTEM USED THREE DIFFERENT CONSULTANTS IN THE PAST TWO YEARS TO HELP ON ACQUISITIONS THE PHILADELPHIA BASED HEALTH SYSTEM HIRED APM INCORPORATED TO DEVELOP A GENERAL STRATEGY K. P. M. G. TO PICK OUT GROUPS OF PRIMARY CARE DOCTORS TO BUY AND ANOTHER TOP ACCOUNTING FIRM TO VALUE PHYSICIANS' PRACTICES THE HEALTH SYSTEM'S CHIEF EXECUTIVE WILLIAM KELLEY WON'T SAY HOW MUCH THE CONSULTANTS' ADVICE COST BUT HE SAYS IT WAS WORTH IT THE CONSULTANTS HAD NATIONWIDE EXPERIENCE IN LINING UP SUCH ACQUISITIONS DOCTOR KELLEY OBSERVES IN FLORIDA THE HUNTER GROUP USED TO SPECIALIZE IN TURNING AROUND TROUBLED HOSPITALS SAYS THE CONSULTING FIRM'S PRESIDENT DAVID HUNTER BUT IN THE PAST YEAR HE AND HIS TWENTY EMPLOYEES HAVE BROADENED THEIR SERVICES ADVISING ON THREE HOSPITAL MERGERS WE'RE GETTING CALLED BY HOSPITALS ASKING WHAT SHOULD WE DO HE SAYS AND WE'RE TESTING THE MARKET TO SEE WHAT SORTS OF ALLIANCES MAKE SENSE OVER TIME SOME OF THE NEW MERGERS MAY PROVE TO BE MISTAKES SAYS BERNARD FERRARI A PARTNER AT MCKINSEY AND COMPANY HE SAYS HE'S ESPECIALLY CONCERNED THAT HIGH COST TEACHING HOSPITALS WILL FIND THAT JOINING FORCES ONLY MAKES THEIR BUDGETING PROBLEMS MORE SEVERE IN FACT HE SAYS SOME PARTIES TO EARLY MERGERS MAY ALREADY BE LOOKING FOR WAYS TO SEPARATE BUT CONSULTANTS NEEDN'T WORRY FIXING UP TROUBLED MERGERS MAY MEAN EVEN MORE WORK AS DOCTOR FERRARI SAYS MCKINSEY HAS DONE AN ENORMOUS AMOUNT OF WORK ON POSTMERGER INTEGRATION IN ALL INDUSTRIES BILL CLINTON HAS CONVERTED AT LEAST ONE REPUBLICAN DAVID STOCKMAN RONALD REAGAN'S BUDGET DIRECTOR IN WHAT MR. STOCKMAN HIMSELF DESCRIBED AS QUOTE A REVERSAL FROM THE GLOOM AND DOOM I'VE LAST ESPOUSED QUOTE HE IS NOW PREDICTING THAT THE FEDERAL DEFICIT WILL SHRINK EVEN FASTER THAN THE WHITE HOUSE PROJECTS AND IS PRAISING PRESIDENT CLINTON'S HEALTH CARE PLAN SPEAKING AT A FORUM SPONSORED BY THE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET MR. STOCKMAN PROJECTED THAT THE DEFICIT WHICH NOW AMOUNTS TO ABOUT THREE POINT FOUR PERCENT OF GROSS DOMESTIC PRODUCT WILL FALL TO ABOUT ONE POINT FIVE PERCENT BY THE END OF THE DECADE PRIMARILY BECAUSE THE INCREASE IN HEALTHCARE COSTS WILL SLOW WITHOUT DWELLING ON THE SPECIFICS MR. STOCKMAN PRAISED THE THRUST OF THE CLINTON HEALTH PLAN BECAUSE IT WILL PUT IN PLACE MECHANISMS TO FORCE AMERICANS INTO PURCHASING POOLS THAT WILL FORCE HEALTH CARE PROVIDERS TO RESTRAIN HEALTH CARE COST INCREASES THE FUNDAMENTAL PLAN IS RIGHT MR. STOCKMAN SAID WHEN THE BASIC DIRECTION OF REALITY CHANGES YOU GOT TO GET WITH IT WHEN LAST HEARD FROM MR. STOCKMAN WAS ATTACKING REPUBLICANS WHO SAID THE DEFICIT COULD BE LICKED WITHOUT TAX INCREASES BUT NOW THAT MR. CLINTON AND THE DEMOCRATS IN CONGRESS HAVE RAISED TAXES MR. STOCKMAN SAYS THERE ISN'T ANY NEED FOR ANOTHER ROUND OF DEFICIT REDUCTION OTHERS DISAGREE AMONG THEM ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE AND TREASURY SECRETARY LLOYD BENTSEN MR. STOCKMAN NOW AN INVESTMENT BANKER SAID MR. CLINTON OWES HIS PRESENT SITUATION TO A GIGANTIC STROKE OF LUCK AND MODEST LEGISLATIVE HEROISM THE U. S. ECONOMY IS BENEFITING FROM A SIGNIFICANT IMPROVEMENT IN PRODUCTIVITY THE RESULT OF WIDESPREAD CORPORATE RESTRUCTURING HE SAID AND FEDERAL SPENDING ON EVERYTHING BESIDES HEALTH CARE IS FLAT OR DECLINING WHEN MEASURED AGAINST G. D. P. THE VALUE OF THE GOODS AND SERVICES PRODUCED IN THE ECONOMY MR. STOCKMAN HAS TRACED THE DEFICIT PROBLEM TO JULY NINETEEN EIGHTY ONE WHEN A FRENZY OF EXCESSIVE AND IMPRUDENT TAX CUTTING SHATTERED THE NATION'S FISCAL STABILITY IN HIS REMARKS FRIDAY HE SAID QUOTE WE DIDN'T KNOW IT AT THE TIME BUT THE NINETEEN EIGHTIES AMOUNTED TO AN EPOCHAL RACE BETWEEN THE U. S. AND THE U. S. S. R. OVER WHO COULD REACH FISCAL BANKRUPTCY FIRST THEY GOT THERE FIRST BY A HAIR THERE IS NO DOUBT THE F. A. A. NEEDS FIXING BUT AN AIR TRAFFIC CONTROL CORPORATION IS NOT THE ANSWER QUOTE GORE'S GANG GETS IT RIGHT QUOTE REVIEW AND OUTLOOK JANUARY SEVENTEENTH MANAGEMENT OF TRAFFIC IN THE PUBLIC INTEREST IS A GOVERNMENT FUNCTION FROM THE TOWN STOPLIGHT TO NEW YORK HARBOR TO THE NATION'S AIRWAYS AN AIR TRAFFIC CONTROL CORPORATION WOULD BE RUN UNDER MAJORITY CONTROL OF FIFTEEN TO TWENTY AIRLINE COMPANIES BUT WOULD BE FUNDED MOSTLY BY TICKET TAXES AND USER FEES PAID BY AIR PASSENGERS SHIPPERS AND AIRCRAFT OPERATORS THE AIRLINES THEMSELVES NOW CONTRIBUTE LITTLE OR NOTHING IN USER FEES WHERE WOULD THE INTERESTS OF THOSE PAYING CUSTOMERS BE SERVED TODAY THEY ARE OVERSEEN BY CONGRESS THE PEOPLE'S ELECTED REPRESENTATIVES AND SINCE THE AIR TRAFFIC SYSTEM IS THE EYES AND EARS OF THE F. A. A.'S REGULATORY FUNCTIONS AND SAFETY ENFORCEMENT DO THE AIRLINE COMPANIES PROPOSE TO UNDERTAKE A SHARE OF THEIR OWN REGULATORY AND ENFORCEMENT OVERSIGHT THE RESULT WILL BE AN EXPENSIVE AND DISRUPTIVE PARALLEL BUREAUCRACY TO WHICH GOVERNMENT AND CONGRESS ABDICATE THEIR RESPONSIBILITIES TO ENFORCE REGULATION AND PROTECT THE PUBLIC INTEREST EXAMPLES OF PRIVATIZATION ABROAD ARE MEANINGLESS TO THIS NATION WHICH HAS SIXTY PERCENT OF THE WORLD'S AIRCRAFT AND ALL BUT ONE OF THE GLOBE'S TWENTY BUSIEST AIRPORTS AND FOREIGN PRIVATIZED SYSTEMS BURDENED WITH LIABILITY INSURANCE DEBT SERVICE AND LABOR TROUBLES ARE FAR MORE COSTLY TO THEIR ECONOMIES AND THE TRAVELING PUBLIC CORPORATIZATION OF OUR SOLE AND IN EFFECT MONOPOLY AIR TRAFFIC CONTROL SYSTEM IS NOT THE MODEL TO INDUCE PRIVATE ENTERPRISE EFFICIENCY IN GOVERNMENT A PRIVATIZED MONOPOLY SYSTEM WOULD LACK COMPETITIVE OR ECONOMIC INCENTIVES TO CREATE SUCH EFFICIENCIES THE CORPORATION STRUCTURE PER SE IS NOT A PANACEA PRIVATE CORPORATIONS WERE HIRED BY THE F. A. A. IN THE NINETEEN EIGHTIES TO BYPASS GOVERNMENT'S PROCUREMENT AND PERSONNEL FAILINGS AND PRODUCE MAJOR ELEMENTS OF THE MASSIVE A. T. C. UPGRADE THESE CORPORATIONS WERE UNABLE TO HANDLE THE MASSIVE SOFTWARE DEVELOPMENT SYSTEMS INTEGRATION AND PROJECT MANAGEMENT PROBLEMS WAS THE F. A. A. A BAD CUSTOMER HINDERING WORK WITH ITS CHANGING SPECIFICATIONS CUMBERSOME PROCUREMENT AND UNINSPIRED PERSONNEL MANAGEMENT OF COURSE BUT IF WE WANT TO FIX GOVERNMENT THEN LET'S FIX GOVERNMENT A BUSINESS EXISTS TO MAXIMIZE ECONOMIC RETURN A GOVERNMENT EXISTS TO MAXIMIZE PUBLIC BENEFIT NO AMOUNT OF IMAGINED GAIN IN EFFICIENCY WILL OFFSET THE LOSS OF PUBLIC CONTROL OF EITHER THE TOWN STOPLIGHT OR THE NATION'S AIR TRAFFIC SYSTEM SO LET'S FIX THE F. A. A. NOT SELL IT OUT WITH THE AIR TRAFFIC SYSTEM TO THE HIGHEST BIDDER NOW I WAS INTERESTED TO SEE IN YOUR ANNUAL LETTER FROM THE PUBLISHER JANUARY FIFTH YOUR ASSERTION IN LARGE ITALIC TYPE THAT QUOTE PUBLISHING A NEWSPAPER IS A PUBLIC TRUST FOR WHICH WE ARE ACCOUNTABLE FIRST OF ALL TO YOU OUR READERS QUOTE SOMEHOW THIS NOBLE IDEAL DOES NOT SEEM TO SQUARE WITH THE STATEMENT BY WILLIAM PETER HAMILTON AN EARLY EDITOR OF THE JOURNAL THAT A NEWSPAPER IS A PRIVATE ENTERPRISE OWING NOTHING WHATEVER TO THE PUBLIC IT IS THEREFORE AFFECTED WITH NO PUBLIC INTEREST IT IS EMPHATICALLY THE PROPERTY OF THE OWNER WHO IS SELLING A MANUFACTURED PRODUCT AT HIS OWN RISK O. K. TIMES CHANGE BUT ISN'T HAMILTON'S VIEW OF THE PRESS MORE IN KEEPING WITH THE FREE MEN AND FREE MARKETS APPROACH TO THE WORLD THAT YOU APPLY TO EVERYTHING ELSE WHY HAVE YOU ABANDONED IT WHEN IT COMES TO THE PRESS AS SOMEONE WHO HAS WORKED WITH CHILDREN AND TEENAGERS I MUST TAKE EXCEPTION TO DOROTHY RABINOWITZ'S REVIEW OF THE OPENING EPISODE OF QUOTE HOMICIDE QUOTE QUOTE TEENS AND TORIES WHO KILL QUOTE LEISURE AND ARTS JAN TEN ANYONE WHO HAS WORKED WITH TEENAGERS OR MORE SPECIFICALLY URBAN YOUTH WILL ATTEST TO THE IMPORTANCE THEY PLACE ON SAVING FACE THE LAST THING GANG MEMBERS OR REBELLIOUS YOUTH WILL TAKE IS ANY FORM OF DISSING IT IS A PERVASIVE ATTITUDE TO BACK DOWN AFTER SOMEONE HAS DISSED YOU ESPECIALLY IN FRONT OF YOUR FRIENDS IS NEXT TO IMPOSSIBLE THESE YOUNG PEOPLE FIND IT DIFFICULT TO JUST WALK AWAY EVEN IF THEY NEVER HAD ANY INTENTION TO HARM SOMEONE IN SHORT WHILE I WILL AGREE THAT THE CRIMINAL IN HOMICIDE IS NOT NECESSARILY REPRESENTATIVE OF MOST YOUNG CRIMINALS IN URBAN AREAS HE IS INCREASINGLY REPRESENTATIVE OF THE MANY YOUNG PEOPLE WHO COMMIT CRIMES THEY NEVER THOUGHT THEY WOULD OR COULD SOME TIME AGO IN THE THIRD OR FOURTH MONTH OF THE TEN BILLION DOLLAR TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INCORPORATED THE FOCUS SEEMED TO SHIFT FROM THE QUESTION QUOTE WHO'S GOING TO WIN QUOTE TO QUOTE WHEN WILL IT END QUOTE FOR INVESTMENT BANKER FELIX ROHATYN IT HAS BEEN LIKE RUNNING UP A SERIES OF SAND DUNES ONE TAKEOVER STOCK TRADER COMPARES IT TO A TRIP TO THE DENTIST AT A MEETING WITH STOCK TRADERS THIS MONTH Q. V. C. NETWORK INCORPORATED CHAIRMAN BARRY DILLER CALLED IT THE DEAL FROM HELL A NEW YORKER MAGAZINE CARTOON CAPTURED THE SENTIMENT TWO WEEKS AGO BY PICTURING A BEARDED END OF THE WORLD PROPHET CARRYING A SIGN THAT READ THE END OF THE SALE OF PARAMOUNT IS NEAR AND INDEED THE OUTCOME COULD CONCEIVABLY BE DETERMINED TOMORROW WHEN FINAL BIDS ARE DUE IT'S BEEN VERY DIFFICULT TECHNICALLY LEGALLY AND EMOTIONALLY FRETS MR. ROHATYN PARAMOUNT'S ADVISER AT LAZARD FRERES AND COMPANY WITH THE TIMETABLES DEADLINES AND CRISES IT'S BEEN PROBABLY ONE OF THE MOST DIFFICULT THINGS I'VE EVER BEEN INVOLVED WITH FROM THE POINT OF VIEW OF PERSONAL WEAR AND TEAR ON EVERYBODY FOR THE PARTICIPANTS THE BATTLE HAS BECOME A NEVER NEVER LAND OF CANCELED PLANS AND ENDLESS MEETINGS AT HOTELS AND INVESTMENT BANKERS' AND LAWYERS' OFFICES PARAMOUNT LAWYER RICHARD BEATTIE FOR EXAMPLE HAD TO BOW OUT OF A TRIP TO CHINA LAST FALL WITH DAVID ROCKEFELLER SAYS MR. DILLER THIS IS NOT NORMAL LIFE THE BIGGEST DRAIN ON MY ENERGY IS TO CONSTANTLY TRY TO REMEMBER THAT THIS IS NOT REAL LIFE QUOTE AT FOUR MONTHS AND NINETEEN DAYS PARAMOUNT IS JUST ABOUT TO PASS THE LENGTH OF THE NINETEEN EIGHTY NINE FIGHT BETWEEN PARAMOUNT AND WARNER COMMUNICATIONS INCORPORATED OVER TIME INCORPORATED AND THAT FIGHT DIDN'T REALLY BEGIN UNTIL THREE MONTHS AFTER THE TIME WARNER DEAL WAS ANNOUNCED WHEN PARAMOUNT MADE A HOSTILE BID FOR TIME BY COMPARISON SOME OF THE TAKEOVER BATTLES THAT ARE REMEMBERED AS RIVETING CLASSICS FOR BENDIX CORPORATION CONOCO INCORPORATED R. J. R. NABISCO INCORPORATED AND GETTY OIL COMPANY WERE OVER WITHIN SIX WEEKS ALTHOUGH THEY REMAIN FEW AND FAR BETWEEN IN THE EARLY NINETEEN NINETIES HIGH PROFILE HOSTILE TAKEOVER BATTLES SEEM TO DRAG ON FAR LONGER THAN THOSE A DECADE AGO ONE REASON IS THE THICKET OF DEFENSIVE STRUCTURES BUILT UP IN THE NINETEEN EIGHTIES TO DETER CORPORATE RAIDERS AND GIVE BOARDS AND SHAREHOLDERS MORE TIME TO RESPOND TO LEGITIMATE BIDS CHIEF AMONG THEM IS THE POISON PILL WHICH BOARDS CAN USE TO MAKE A HOSTILE BID PROHIBITIVELY EXPENSIVE SEVERAL LOWER PROFILE DEALS OF THE LATE NINETEEN EIGHTIES LASTED FAR LONGER THAN THE PARAMOUNT CONTEST IT TOOK EIGHT MONTHS FOURTEEN DAYS FOR TYSON FOODS INCORPORATED TO WREST CONTROL OF CONAGRA INCORPORATED AWAY FROM HOLLY FARMS CORPORATION IN THE NINETEEN EIGHTY EIGHT TO EIGHTY NINE CHICKEN WARS FOR THE FIRST TWO MONTHS PARAMOUNT A MOVIE TELEVISION AND PUBLISHING CONCERN MANEUVERED TO PROTECT ITS FRIENDLY MERGER WITH VIACOM INCORPORATED AND KEEP Q. V. C. AT BAY DESPITE MR. DILLER'S HIGHER BIDS WHILE BOTH BIDDERS GATHERED MULTIPLE PARTNERS TO GAIN EXTRA FINANCING IN THE THIRD MONTH TWO DELAWARE COURTS RULED THAT PARAMOUNT'S BOARD HAD ACTED AGAINST ITS SHAREHOLDERS' INTERESTS AND ORDERED A NEW ROUND OF BIDS SINCE CHRISTMAS CABLE T. V. CONCERN VIACOM AND HOME SHOPPING COMPANY Q. V. C. HAVE BEEN EXCHANGING MINOR CHANGES TO THEIR OFFERS IN A SLOW MOTION AUCTION PARAMOUNT HAS SIGNED NEW MERGER AGREEMENTS WITH Q. V. C. AND THEN VIACOM AGAIN AND VIACOM EVEN HAD TIME TO PUT TOGETHER AN EIGHT POINT FOUR BILLION DOLLAR TAKEOVER OF BLOCKBUSTER ENTERTAINMENT CORPORATION THE VIDEO CASSETTE RENTAL CHAIN THE SIEGE HAS ROBBED VIACOM ADVISER ROBERT GREENHILL OF TIME HE COULD HAVE USED TO BUILD THE INVESTMENT BANKING SIDE OF SMITH BARNEY SHEARSON INCORPORATED ANOTHER SMITH BARNEY BANKER MICHAEL LEVITT SPENT PARTS OF THE CHRISTMAS AND NEW YEAR'S DAYS NEGOTIATING WITH BLOCKBUSTER AND SAYS HE HASN'T HAD A FULL DAY OFF SINCE THE CONTEST BEGAN DESPITE CRITICISM OF THIS TIME CONSUMING AUCTION MR. ROHATYN SAYS IT WAS NECESSARY TO ALLOW A FAIR AIRING OF THE COMPETING OFFERS BOTH WITH TWO TIER CASH AND PAPER BIDS WHERE THE SECURITIES END IS MORE AND MORE DIFFICULT TO EVALUATE TAKEOVER TRADERS HAVE BEEN PARTICULARLY DISPIRITED BECAUSE PARAMOUNT STOCK HAS GONE DOWNHILL SINCE MID NOVEMBER JUST BEFORE THE COURT ACTIONS THE LENGTHY AUCTION PROCESS HAS ERODED THEIR PROFITS BY ADDING TO THEIR FINANCING COSTS OF CARRYING THEIR POSITIONS AS THEY WAIT FOR BIG BLOWOUT BIDS THEY HOPE MAY HERALD THE END OF THE BATTLE FRANK BIONDI CHIEF EXECUTIVE OF NEW YORK BASED VIACOM WHO IS SUPPOSED TO RUN THE MAMMOTH PROPOSED COMBINATION OF VIACOM PARAMOUNT AND BLOCKBUSTER SAYS HE COULDN'T ESCAPE THE BATTLE EVEN WHEN HE JETTED OFF TO MIAMI RECENTLY FOR A TRADE SHOW THE ONLY THING ANYONE WANTED TO TALK ABOUT WAS THE DEAL HOME LIFE HAS BEEN DISRUPTED TOO MR. BIONDI SAYS FOR ONE THING I'M NOT THERE HIS CHILDREN AGES FIFTEEN AND EIGHTEEN MISS GOING TO MOVIES AND SPORTING EVENTS WITH HIM AND WHAT HAPPENS WHEN HE DOES MANAGE TO SQUEEZE IN SOME QUALITY TIME WITH THEM AT HOME THEY TOO BUG HIM ABOUT WHAT'S GOING ON BEHIND THE SCENES AND WHO'S GOING TO WIN THEIR FRIENDS ALSO BUG THEM HE ADDS NOTING THAT HE IS ESPECIALLY CAREFUL TO REMAIN MUM AROUND THE HOUSE ABOUT ANY CONFIDENTIAL DEVELOPMENTS PARAMOUNT'S CHAIRMAN MARTIN DAVIS MR. DILLER'S NEMESIS IN THE CONTEST WAS SO TAKEN WITH THE NEW YORKER CARTOON THAT HE ACQUIRED IT HAVING FIRST WARNED HIS OWN ADVISERS THAT HE DIDN'T WANT TO GET INTO A BIDDING WAR FOR IT WITH THEM WHEN LAST SEEN IN HIS FORTY SECOND FLOOR OFFICE MR. DAVIS HAD A VICTOR'S SMILE ON HIS FACE AS FAR AS THE ARTWORK GOES BUT THE STRAIN OF THE PROLONGED BATTLE IS SHOWING IN OTHER WAYS ONCE THE DESIGNATED CHIEF EXECUTIVE IN THE FRIENDLY MERGER WITH VIACOM FIRST ANNOUNCED ON SEPTEMBER TWELFTH MR. DAVIS NOW HAS LITTLE ROLE IN PARAMOUNT'S FUTURE NO MATTER WHO WINS LOOKING PALE THE HEALTH CONSCIOUS EXECUTIVE NOTED RECENTLY THAT HE WAS WRESTLING WITH HIS THIRD COLD SINCE THE FIGHT BEGAN THE FOLLOWING U. S. TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT BOWATER INCORPORATED SEVENTY FIVE MILLION DOLLARS OF PREFERRED AND ONE HUNDRED MILLION DOLLARS OF PREFERRED REDEEMABLE INCREASED DIVIDEND EQUITY SECURITIES VIA MERRILL LYNCH AND COMPANY PEOPLE'S REPUBLIC OF CHINA ONE BILLION DOLLARS OF TEN YEAR GLOBAL BONDS VIA MERRILL LYNCH A. C. F. INDUSTRIES HOLDING CORPORATION TWO HUNDRED MILLION DOLLARS OF FIVE YEAR SENIOR SECURED ZERO COUPON NOTES VIA MERRILL LYNCH A. C. F. INDUSTRIES INCORPORATED TWO HUNDRED FIFTY MILLION DOLLARS OF TEN YEAR SENIOR NOTES VIA MERRILL LYNCH AMLI RESIDENTIAL PROPERTIES INCORPORATED INITIAL NINE POINT TWO MILLION SHARES VIA MERRILL LYNCH BENETTON GROUP COMPANY FIVE MILLION AMERICAN DEPOSITARY SHARES VIA MERRILL LYNCH CONSEP INCORPORATED INITIAL TWO POINT FIVE MILLION SHARES VIA PRUDENTIAL SECURITIES INCORPORATED DIGITAL LINK CORPORATION INITIAL TWO POINT THREE MILLION SHARES VIA BEAR STEARNS AND COMPANY EMPRESAS LA MODERNA S. A. INITIAL TEN POINT SIX MILLION AMERICAN DEPOSITARY SHARES VIA MORGAN STANLEY AND COMPANY ESMOR CORRECTIONAL SERVICES INITIAL EIGHT HUNDRED THIRTY THREE THOUSAND THREE HUNDRED THIRTY THREE SHARES VIA JANNEY MONTGOMERY SCOTT IGEN INCORPORATED INITIAL TWO POINT SIX MILLION SHARES VIA GOLDMAN SACHS AND COMPANY ISTITUTO MOBILIARE ITALIANO INITIAL ELEVEN POINT SEVEN MILLION AMERICAN DEPOSITARY SHARES EQUAL TO ABOUT THIRTY FIVE MILLION SHARES VIA MORGAN STANLEY MAINSTREAM DATA INITIAL TWO MILLION SHARES VIA PIPER JAFFRAY INCORPORATED MAPINFO CORPORATION INITIAL ONE POINT FOUR MILLION SHARES VIA ROBERTSON STEPHENS AND COMPANY MORGAN STANLEY AFRICA INVESTMENT FUND INITIAL FOUR MILLION SHARES VIA MORGAN STANLEY ONCOR INCORPORATED THREE MILLION SHARES VIA SMITH BARNEY SHEARSON INCORPORATED PACIFIC GULF PROPERTIES INITIAL THREE POINT NINE MILLION SHARES VIA ALEXANDER BROWN AND SONS INCORPORATED PARCPLACE SYSTEMS INCORPORATED INITIAL TWO MILLION SHARES VIA ROBERTSON STEPHENS POST PROPERTIES FOUR MILLION SHARES VIA MERRILL LYNCH RENAISSANCE COMMUNICATIONS CORPORATION INITIAL FOUR POINT SEVEN MILLION SHARES VIA GOLDMAN SACHS REPAP WISCONSIN INCORPORATED FOUR HUNDRED MILLION DOLLARS OF TWO PART DEBT OFFERING VIA C. S. FIRST BOSTON REPLIGEN CORPORATION TWO POINT FIVE MILLION SHARES VIA LEHMAN BROTHERS INCORPORATED REPUBLIC OF PORTUGAL SEVEN HUNDRED FIFTY MILLION E. C. U. OF TEN YEAR GLOBAL BONDS VIA MORGAN STANLEY DRESDNER AND COMPANY AND PARIBAS CORPORATION ROCHESTER TELEPHONE CORPORATION FIVE MILLION SHARES VIA SALOMON BROTHERS SCANDINAVIAN BROADCASTING SYSTEMS S. A. TWO POINT EIGHT MILLION SHARES VIA PRUDENTIAL SECURITIES STONE CONTAINER TWENTY ONE MILLION SHARES VIA SALOMON BROTHERS STORAGE EQUITIES INCORPORATED THREE MILLION SHARES VIA PAINEWEBBER INCORPORATED WALDEN RESIDENTIAL PROPERTIES INCORPORATED INITIAL SEVEN MILLION SHARES VIA SALOMON BROTHERS WESTERN DIGITAL CORPORATION SIX POINT ONE MILLION SHARES VIA KIDDER PEABODY AND COMPANY WESTERN NATIONAL LIFE INSURANCE COMPANY INITIAL THIRTY TWO POINT FIVE MILLION SHARES VIA MERRILL LYNCH LOS ANGELES DEPARTMENT OF WATER AND POWER TWO HUNDRED SEVENTY SEVEN MILLION DOLLARS OF VARIOUS NINETEEN NINETY FOUR ELECTRIC PLANT REVENUE AND REVENUE REFUNDING BONDS VIA COMPETITIVE BID GWINNETT COUNTY SCHOOL DISTRICT GEORGIA ONE HUNDRED FORTY ONE POINT FIVE MILLION DOLLARS OF IMPROVEMENT BONDS VIA COMPETITIVE BID TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY N. Y. SIX HUNDRED SIXTY FIVE MILLION DOLLARS OF GENERAL PURPOSE REVENUE BONDS VIA A BEAR STEARNS GROUP SAN DIEGO FOUR HUNDRED THIRTY MILLION DOLLARS OF PENSION OBLIGATION BONDS VIA A MERRILL LYNCH GROUP NEW YORK STATE DORMITORY AUTHORITY TWO HUNDRED THIRTY MILLION DOLLARS OF REVENUE BONDS VIA A GOLDMAN SACHS GROUP NEW HAMPSHIRE TURNPIKE AUTHORITY ONE HUNDRED FIVE MILLION DOLLARS OF BONDS VIA A BEAR STEARNS GROUP ANOTHER LIVING BREATHING FIGURE IN OUR DAILY LIVES MAY SOON BE GONE THE CHECKOUT PERSON AT THE GROCERY STORE SHOPPERS ALREADY ARE BECOMING FAMILIAR WITH THE PISTOL SHAPED DEVICES THAT MANY CHECKERS USE TO SCAN THE BAR CODES ON GROCERIES NOW AT LEAST THREE COMPANIES HAVE DEVELOPED SELF SCANNING DEVICES THAT SHOPPERS THEMSELVES CAN USE SELF SCANNING IS SUPPOSED TO MEAN FOR CUSTOMERS A FASTER CHECK OUT AND MORE CONFIDENCE IN THE ACCURACY OF THE BILL FOR GROCERS IT MAY MEAN MORE CUSTOMERS LABOR SAVINGS AND LESS EMPLOYEE THEFT FARTHEST ALONG THIS ROAD TO DO IT YOURSELF IS UNIQUEST OF JACKSONVILLE FLORIDA SOME TWENTY STORES IN THE NORTHEAST ARE TRYING THE COMPANY'S AUTOMATED CHECKOUT MACHINE A SHOPPER BRINGS GROCERIES TO AN A. C. M. COUNTER WHERE HE SCANS AND BAGS THEM AND RECEIVES A PRINTED BILL HE THEN TAKES THE BILL TO A CASHIER'S STATION TO PAY TO GUARD AGAINST THEFT THE COMPANY SAYS ITS SCANNER CAN CATCH AN ATTEMPT TO PASS OFF PEAS FOR STEAK PATHMARK STORES HAS INSTALLED THE DEVICE AT THREE LOCATIONS AND SIX MORE WILL GET THEM SOON QUOTE IT LETS CUSTOMERS TAKE CONTROL OF BOTH THE SCANNING AND THE BAGGING AND GIVES THEM THE PERCEPTION THAT THEY'RE MOVING FASTER QUOTE SAYS JOHN POLIDORE A PATHMARK DIRECTOR OF OPERATIONS OPTIMAL ROBOTICS TORONTO HAS PUT FOUR SELF SCANNING STATIONS AT A PRICE CHOPPER SUPERMARKET IN CLIFTON PARK N. Y. A SHOPPER SCANS BAGS AND PAYS FOR HIS PURCHASES ALL AT ONE PLACE THE COMPANY WITH THE BOLDEST APPROACH IS SYMBOL TECHNOLOGIES BOHEMIA N. Y. IT LETS EACH SHOPPER ROAM ABOUT WITH A PORTABLE HANDHELD SCANNER RECORDING EACH ITEM AS IT COMES OFF THE SHELF THE SHOPPER CAN CHECK HOW MUCH HE HAS SPENT AS HE GOES ALONG FOR A BILL PRINTOUT HE RETURNS THE DEVICE TO A SCANNER STATION SO FAR THE SYSTEM IS AT WORK ONLY IN AN ALBERT HEIJN SUPERMARKET IN GELDERMALSEN A VILLAGE IN THE NETHERLANDS HEIJN AND SYMBOL DEVELOPED THE SYSTEM WITH TNO PRODUCT CENTRE A DUTCH DESIGN FIRM PEOPLE NEVER SEEM TO TIRE OF FINDING NEW USES FOR OLD TREAD RUBBER YAACOV NAGLER TAKES THREE TIRE SIDEWALLS BOLTS THEM TOGETHER AND SELLS THE LAYERED RUBBER RING TO ROAD BUILDERS WHO DROP IT OVER A HIGHWAY SAFETY CONE MADE BY YANCO BETHESDA MARYLAND MR. NAGLER'S SAFETYRINGS ARE MEANT TO GIVE CONES ENOUGH WEIGHT AND DIAMETER TO RESIST BEING BLOWN INTO THE PATH OF ONCOMING TRAFFIC SAFETYRING JOINS A LONG LIST OF PRODUCTS MADE FROM OLD TIRES RUNNING TRACKS SHINGLES TUGBOAT BUMPERS HOSES COW BEDS SHOE SOLES FLOWER PLANTERS MUD FLAPS WHEEL CHOCKS LIVESTOCK FEEDERS BALLPOINT PENS GARBAGE PAILS CAR MATS SPEED BUMPS SWINGS AND ARTIFICIAL FISH REEFS TO NAME SOME BUT ALL THESE PRODUCTS USE ONLY A FEW OF THE TWO HUNDRED FORTY MILLION TIRES SCRAPPED IN THE U. S. EACH YEAR TWO THIRDS OF SCRAP TIRES END UP IN LANDFILLS OR STOCKPILES OR ILLEGAL DUMPS MOST OF THE REST ARE BURNED FOR FUEL SOME ARE GROUND UP AND ADDED TO ASPHALT REVIEWS OF SAFETYRING ARE MIXED LEE MCCOUBREY TRAFFIC MANAGER AT CIANBRO CONSTRUCTION PITTSFIELD MAINE SAYS HE HAS BEEN TESTING FIFTEEN OF THE RINGS ON A FREEWAY IN WASHINGTON D. C. WITH A DIAMETER OF EIGHTEEN TO TWENTY FOUR INCHES HE SAYS SAFETYRING IS PROBABLY O. K. FOR WIDE LANES BUT BULKY FOR NARROW LANES JOHN SANDY TRAFFIC MANAGER AT NATIONAL CAPITAL INDUSTRIES A BLADENSBURG MARYLAND CONSTRUCTION SUPPLY HOUSE CALLS SAFETYRING A LITTLE MORE STABLE THAN COMPETING PRODUCTS BUT THE RINGS DON'T STACK WELL SAYS MR. SANDY AND SOME CUSTOMERS ARE PICKY ABOUT SAFETYRING'S USED TIRE LOOK IT'S GETTING EASIER TO PUMP GAS WHILE KEEPING THE AIR CLEAN SERVICE STATION OWNERS HAVE BEGUN INSTALLING A NEW SMOG FIGHTING PUMP WITH A NOZZLE THAT'S FASTER AND FRIENDLIER THAN THE PREVIOUS GENERATION BY THE END OF NINETEEN NINETY FIVE ROUGHLY FORTY PERCENT OF SELF SERVICE STATIONS WILL BE REQUIRED TO HAVE PUMPS THAT CAPTURE GASOLINE VAPORS ESCAPING FROM A VEHICLE'S FILL PIPE AND RETURN THEM TO THE STATION'S UNDERGROUND STORAGE TANK THE BALANCE SYSTEM WHICH HAS BEEN AROUND SINCE THE NINETEEN SEVENTIES USES THE PRESSURE DIFFERENCE BETWEEN THE TWO TANKS TO PASSIVELY MOVE THE VAPORS IT HAS A NOZZLE THAT RESEMBLES AN ELEPHANT'S TRUNK OR A BELLOWS WHICH MUST BE COMPRESSED TO MAKE A SEAL THE NEW VACUUM ASSIST SYSTEM HAS AN EXTRA LITTLE PUMP THAT PULLS VAPORS OUT OF THE CAR ITS NOZZLE DESIGNED BY OPW FUELING COMPONENTS CINCINNATI CLOSELY RESEMBLES A CONVENTIONAL NOZZLE THE VACUUM ASSIST DELIVERS GAS FASTER THAN THE BALANCE SYSTEM AND ITS NOZZLE IS EASIER TO USE EXXON IS CHANGING MANY OF ITS PUMPS TO VACUUM ASSIST BECAUSE IT IS QUOTE MORE CUSTOMER FRIENDLY QUOTE THAN THE BALANCE SYSTEM SAYS A SPOKESMAN BUT VACUUM ASSIST IS MORE COMPLEX HARDER TO MAINTAIN AND COSTS MORE TO INSTALL SUPERIOR EQUIPMENT SAINT LOUIS REPORTS THAT ONE CUSTOMER WITH SEVENTEEN STATIONS DECIDED TO STICK WITH THE BALANCE BECAUSE OF THE EXPENSE OF THE VACUUM ASSIST THE LOT OF THE CRITIC HAS ALWAYS BEEN TOUGH IT TAKES YEARS OF DISCIPLINE AND TRAINING TO BUILD THE RIGHT KIND OF CALLUSES YOU HAVE TO KNOW HOW TO SIT REAL STILL FOR A LONG TIME AND HOW TO DUCK THE OCCASIONAL ROUNDHOUSE AND AFTER ALL THE BRUISES EVERY ONCE IN A WHILE A WORK COMES ALONG THAT ADDS INSULT TO INJURY A WORK LIKE QUOTE THE CRITIC QUOTE A. B. C. WEDNESDAYS EIGHT THIRTY TO NINE P. M. E. S. T. AN ANIMATED SERIES FROM JAMES L. BROOKS AND THE PRODUCERS OF THE SIMPSONS AL JEAN AND MIKE REISS THE CRITIC IS THE STORY OF JAY SHERMAN VOICED BY SATURDAY NIGHT LIVE'S MASTER THESPIAN JON LOVITZ BALDER THAN SISKEL PAUNCHIER THAN EBERT JAY IS THIRTY SIX DIVORCED AND LONELY HIS HAIR COMES OUT OF A SPRAY CAN AND AS EVEN HIS SISTER NOTES HIS BUTT STICKS OUT LIKE AN AIR CONDITIONER WHO IS THIS SCHLEMIEL WHY THE STAR OF HIS OWN SYNDICATED MOVIE REVIEW SHOW COMING ATTRACTIONS WHEN HE'S NOT BLASTING FILMS LIKE HOME ALONE FIVE ON HIS RATING SCALE THE SHERMOMETER OR LUNCHING WITH VARIOUS STARS AT L'ANE RICHE JAY IS LOOKING FOR LOVE HE THINKS HE FINDS IT WHEN A BEAUTIFUL YOUNG STARLET COMES ON HIS PROGRAM AND ANNOUNCES THAT ALTHOUGH SHE WAS A MODEL A BEAUTY QUEEN AND USED TO DATE DONALD TRUMP SHE FINDS DUMPY LITTLE SMART MEN SEXIEST ESPECIALLY JAY OF COURSE IT MAY NOT HURT THAT HE'S ABOUT TO REVIEW HER NEW FILM WHEN HIS ELEVEN YEAR OLD SON MARTY BURSTS IN ON THE TWO OF THEM JAY SITS THE BOY DOWN FOR A MAN TO MAN CHAT NOW SON YOU MAY JUST HAVE NOTICED A BEAUTIFUL WOMAN IN MY BED HE SAYS QUOTE I WON'T TELL ANYONE QUOTE MARTY PROMISES ACTUALLY SAYS JAY I WISH YOU'D TELL EVERYONE PARTICULARLY YOUR MOTHER AND HER PERSONAL TRAINER ALBERTO THIS WEEK'S SHOW OFFERS MORE MALE BONDING AS JAY VISITS HIS SON'S PRIVATE SCHOOL FOR CAREER DAY ALTHOUGH THE FOREIGN STUDENTS DON'T KNOW WHAT TO MAKE OF HIM HE BEARS A STRANGE RESEMBLANCE TO OUR GOD OF FLATULENCE JAY SOON CONVINCES THEM THAT BEING A CRITIC IS A GREAT JOB I GET TO EAT POPCORN ALL DAY AND WATCH MOVIES PLUS ONE GET TO THINK OF NEW WAYS TO CRITICIZE THINGS LIKE YOU MIGHT SAY THAT YOUR TEACHER IS WEARING AN UGLY RED DRESS I SAY SHE'S A WALKING BLOOD CLOT THE CRITIC IS A CLEVER SHOW AT ITS CLEVEREST IN THE DETAILS THE MARGINALIA LIKE THE SNIPPETS OF FILMS THAT JAY REVIEWS EACH WEEK THERE'S SPIKE LEE'S LATEST F. THE STORY OF MALCOLM FORBES AND ARNOLD SCHWARZENEGGER IN QUOTE RABBI P. I. QUOTE A CHICAGO POLICEMAN WHO GOES UNDERCOVER AS A HASIDIC JEW EAT LEAD RABBI SAYS A CROOK SORRY THAT'S NOT KOSHER SAYS ARNOLD PULLING OUT HIS SHOTGUN TO BLOW THE BAD GUY AWAY HAVA NAGILA BABY THIS SERIES IS PACKED WITH ALL SORTS OF SLY TIDBITS THAT SPOOF THE MEDIA THERE'S THE MICHAEL JACKSON NEWS NETWORK WITH BUREAUS IN BANGKOK LONDON AND DISNEYLAND AND A VIDEO GAME CALLED ESCAPE FROM NEW YORK WHERE THE PRIME NEMESIS IS AN ELECTRONIC AL SHARPTON WHO TALKS PLAYERS TO DEATH BLAH BLAH BLAH TONALLY THE CRITIC IS SHARP CUTTING LIKE ITS HERO IT'S ALWAYS READY TO FLING A JUICY INSULT IN ANY DIRECTION FROM WOODY ALLEN TO J. F. K. FROM RICHARD NIXON TO SALLY STRUTHERS QUOTE ATTENTION STUDENTS FROM UNDERDEVELOPED COUNTRIES SALLY STRUTHERS IS HERE TO SEE YOU AND SHE'S BROUGHT FIVE HUNDRED SANDWICHES WHATEVER SHE CAN'T EAT IS YOURS IF THE CRITIC SNEERS EQUALLY AT JUST ABOUT EVERYONE IT SNEERS MOST AT OUR HERO JAY HIS BOSS HUMILIATES HIM HIS EX WIFE HATES HIM HIS ADOPTIVE PARENTS BARELY REMEMBER HE'S ALIVE AND HIS PUBLIC HIS PUBLIC CAN'T STAND HIS SNOOTY PRETENSIONS I HAVE NO FANS HE ADMITS MOST OF MY VIEWERS ARE DRUNKEN FRAT BOYS STRIP ALL THE MOVIE TRAPPINGS AWAY AND WHAT YOU'VE GOT IS A HALF HOUR PROGRAM ABOUT A LOSER A HOMER SIMPSON SHOW WITHOUT A BART IN FACT THERE'S NOT A SINGLE LIKABLE CHARACTER IN THE CRITIC WHICH FOR ALL THE ACERBIC WIT MAKES THIS SERIES A LITTLE OFF PUTTING A LITTLE TRISTE BEATING UP ON JAY WITH A STRING OF MEANSPIRITED FAT AND LONELY JOKES THE SHOW SEEMS LIKE A HALF HOUR OF PICKING ON THE DUMPY KID AT THE PLAYGROUND IF ONLY JAY WERE LOVABLE ENOUGH TO MAKE YOU WANT TO SPRING TO HIS DEFENSE OR TOUGH ENOUGH TO FIGHT BACK HIMSELF FOR ME QUOTE THE CRITIC QUOTE IS CAPTURED IN THE MOMENT WHEN THE STARLET STORMS OUT ON JAY YOU'RE SHORT YOU'RE FAT AND EVEN FOR A FILM CRITIC YOU'RE UGLY SHE SNARLS I SEE YOU WANT ME TO BEG SAYS JAY WELL THERE'S ONE THING YOU DIDN'T COUNT ON I HAVE NO PRIDE ULTIMATELY THE CRITIC IS A SHOW ABOUT PUT DOWNS OF FILMS OF MEDIA FIGURES AND OF ITS OWN CHARACTERS IN SHORT A REAL DON RICKLES OF A SHOW THERE'S NO QUESTION THAT IT HAS SOME OF THE WITTIEST WICKEDEST WRITING ON PRIME TIME T. V. AND PERHAPS THIS ANIMATED SERIES WILL TURN INTO SOME KIND OF CULT HIT BUT IT'S TOO ADULT FOR KIDS TOO INSIDE HOLLYWOOD FOR MOST ADULTS AND ITS TONE IS NOT JUST SNIDE IT'S DEPRESSING ABOVE ALL QUOTE THE CRITIC QUOTE MAKES ONE BIG MISTAKE IT PORTRAYS CRITICS AS LOSERS WHICH CLEARLY ISN'T FUNNY AT ALL THERE IS A RUMOR GOING AROUND THAT A. B. C. HAS ANOTHER SHOW IN THE WORKS ABOUT A TELEVISION REVIEWER STARRING DANIEL DAY LEWIS OR PERHAPS SEAN CONNERY NOT MUCH HAPPENS BUT THE HERO SURE LOOKS GOOD AS HE STRUGGLES MANFULLY FOR THAT PERFECT ADJECTIVE NOW THERE'S A PROGRAM WORTH WATCHING TONIGHT ON C. N. N.'S QUOTE LARRY KING LIVE QUOTE THE FIRST OF A LONG ANTICIPATED SERIES OF ADS FOR VOLKSWAGEN'S GOLF AND JETTA MODELS IS SCHEDULED TO AIR BOTH THE AUTOMOBILE MANUFACTURER AND ITS FLEDGLING NEW YORK AD AGENCY BERLIN WRIGHT CAMERON HAVE THEIR FUTURES RIDING ON THE RESULTS FOR VOLKSWAGEN A. G. IT IS PERHAPS THE FINAL CHANCE TO RECAPTURE THE AMERICAN DRIVER WHOSE AFFECTIONS THE GERMAN CAR MAKER HAD WON THROUGHOUT THE NINETEEN SIXTIES WITH THE SEEMINGLY UBIQUITOUS BEETLE IN THE CUTTHROAT COMPETITION AMONG COMPACT CARS IN THE NINETEEN SEVENTIES AND NINETEEN EIGHTIES VOLKSWAGEN LOST THE BATTLE TO JAPANESE RIVALS ITS REPUTATION FOR SAFETY TOOK A DRUBBING FROM CRITICS IT RESISTED PUTTING AIR BAGS IN CARS WHILE OTHER MANUFACTURERS HURRIED TO INSTALL THEM AND IT RECORDED A DISMAL SALES PERFORMANCE LAST YEAR LARGELY BECAUSE OF PRODUCTION AND QUALITY PROBLEMS AT ITS PLANT IN PUEBLA MEXICO FOR BERLIN WRIGHT CAMERON THE SPINOFF AGENCY CREATED LAST YEAR FROM OMNICOM GROUP'S D. D. B. NEEDHAM IT IS A CRITICAL OPPORTUNITY TO PROVE ITSELF AS A CREATIVE FORCE ON MADISON AVENUE AND AS A VALUABLE MARKETING PARTNER TO VOLKSWAGEN ITS BIGGEST AND MOST IMPORTANT CLIENT GIVING VOLKSWAGEN A JUMP START WON'T BE EASY VOLKSWAGEN DIDN'T KEEP UP WITH WHAT AMERICANS WANTED SAYS JOHN RETTIE AN ANALYST WITH J. D. POWER AND ASSOCIATES AND THE EDITOR OF THE CALIFORNIA REPORT A MONTHLY NEWSLETTER ON MARKETING INDEED SALES OF THE GOLF FELL FORTY NINE POINT NINE PERCENT LAST YEAR TO ONLY FOUR THOUSAND SIX HUNDRED NINETY THREE AND DROPPED FIFTY ONE POINT TWO PERCENT TO FOURTEEN THOUSAND FIVE HUNDRED EIGHTY THREE FOR THE JETTA ACCORDING TO DATA SUPPLIED BY JACOBS ASSOCIATES IN RUTHERFORD N. J. SALES PICKED UP IN THE FOURTH QUARTER ONCE PROBLEMS IN THE MEXICAN PLANT WERE RESOLVED IN JUNE ONLY NINETY SEVEN GOLFS WERE SOLD BUT BY DECEMBER EIGHT HUNDRED ELEVEN VEHICLES MOVED OUT OF SHOWROOMS THAT DRAMATIC BOOST SAY AUTO ANALYSTS IS EVIDENCE THAT VOLKSWAGEN IS POISED FOR A COMEBACK VOLKSWAGEN HAS TO COMMUNICATE DIRECTLY TO CONSUMERS AND GET PEOPLE TO SHOP THEM SAYS SUSAN JACOBS AN ANALYST WITH JACOBS ASSOCIATES AN AUTOMOTIVE FORECASTING AND CONSULTING FIRM VOLKSWAGEN DOESN'T HAVE HIGH AWARENESS AMONG CONSUMERS SHE SAYS BUT MR. RETTIE SAYS THERE IS LATENT AWARENESS OF VOLKSWAGEN AMONG CONSUMERS TAPPING INTO THOSE MEMORIES IS ONE REASON VOLKSWAGEN IS SPENDING UPWARD OF ONE HUNDRED MILLION DOLLARS IN AN UNPRECEDENTED AD BLITZ THE SERIES OF ELEVEN COMMERCIALS WHICH INCLUDES FIFTEEN SECOND AND HALF MINUTE SPOTS DISCUSSES THE VEHICLES' MECHANICAL AND SAFETY FEATURES IN WAYS THAT TRY TO BE HUMOROUS WHILE THE NEW ADS STRIVE TO BE CLEVER THEY DON'T MATCH SOME OF VOLKSWAGEN'S BEST ADS FROM THE NINETEEN SIXTIES PRODUCED BY DOYLE DANE BERNBACH SUCH AS ONE SHOWING A BEETLE BEING EASILY DRIVEN AFTER A BLIZZARD TO ILLUSTRATE HOW THE MAN WHO DRIVES THE SNOW PLOW GETS TO THE SNOW PLOW IN A NEW COMMERCIAL FOR THE GOLF A KNIGHT IN SHINING ARMOR WALKS HEAD ON TOWARD THE CAMERA ANY CAR WITH AIR BAGS WILL HELP PROTECT YOU IN A HEAD ON COLLISION SAYS THE VOICEOVER WHICH IS SUPPLIED BY KYLE MACLACHLAN THE STAR OF TWIN PEAKS A. B. C.'S QUIRKY SERIES FROM A FEW YEARS AGO THE NEW GOLF HAS QUOTE AIR BAGS CRUMBLE BEAMS AND SIDE IMPACT BEAMS SO IT CAN HELP PROTECT YOU FROM ANY ANGLE INCLUDING THIS ONE QUOTE AS THE AD ENDS THE KNIGHT IS WALKING AWAY FROM THE CAMERA REVEALING ONLY HIS FRONT IS PROTECTED HIS OTHER VERTICAL HALF SHOWS HE IS WEARING NOTHING BUT UNDERWEAR ANOTHER COMMERCIAL IS SHOWN FROM THE POINT OF VIEW OF A BUG ON A RURAL HIGHWAY TO YOU THE NEW GOLF MAY NOT LOOK MORE AREO DYNAMIC THAN A PORSCHE NINE HUNDRED TWENTY EIGHT THE VOICEOVER BEGINS AS ONE CAR QUICKLY PASSES BUT THEN YOU'RE NOT A BUG SPLAT THE BUG HITS THE WINDSHIELD THE CHALLENGE ON DOING NEW VOLKSWAGEN ADVERTISING SAYS ANDY BERLIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BERLIN WRIGHT IS TO COME UP WITH HARD CLEAR PRODUCT FOCUSED ADS THAT GIVE CAR BUYERS THE KIND OF INFORMATION THEY NEED TO MAKE AN INTELLIGENT CHOICE AND TO COMPETE WITH THE LEGACY OF SOME OF THE BEST ADVERTISING EVER DONE MR. BERLIN IS THE VOICEOVER FOR EACH JETTA AD OMITTED FROM THE COMMERCIALS IS THE SLOGAN THAT ENDED EACH VOLKSWAGEN SPOTS RECENTLY THE MOST LOVED CARS IN THE WORLD QUOTE THAT WAS MEANT TO BUILD BRAND AWARENESS THAT WE ARE ALIVE AND WELL QUOTE SAYS ANDREW BERGSTROM A VOLKSWAGEN ADVERTISING EXECUTIVE THIS NEXT PHASE IS TO BUILD INTEREST AND AWARENESS IN THE SPECIFIC CARS WHICH SELL FOR ELEVEN THOUSAND DOLLARS TO SIXTEEN THOUSAND DOLLARS AND COMPETE WITH EVERYTHING FROM THE HONDA ACCORD TO CHRYSLER'S NEW NEON MR. BERGSTROM ACKNOWLEDGES THAT VOLKSWAGEN HASN'T BEEN A MAJOR PRESENCE ON BROADCAST NETWORK TELEVISION LATELY BUT THAT IS CHANGING THIS WEEK IT HEAVILY BOUGHT SUCH HIP SHOWS AS LATE SHOW WITH DAVID LETTERMAN ON C. B. S. AND SEINFELD ON GENERAL ELECTRIC'S N. B. C. IT WILL ALSO BE SEEN ON CABLE NETWORKS INCLUDING M. T. V. AND V. H. ONE VOLKSWAGEN HAS SET AN AUDACIOUS GOAL FOR ITSELF OF MORE THAN DOUBLING ITS NINETEEN NINETY THREE U. S. SALES ULRICH SEIFFERT THE COMPANY'S HEAD OF WORLD WIDE RESEARCH SAID RECENTLY THAT VOLKSWAGEN IS SEEKING TO SELL TWO HUNDRED FIFTY THOUSAND VEHICLES IN THE U. S. AND IT NEEDED TO RECLAIM ITS IMAGE FOR SELLING HONEST RELIABLE AFFORDABLE CARS THAT IS QUITE A CHALLENGE NOT ONLY FOR VOLKSWAGEN BUT FOR ITS ADVERTISING MESSENGER BERLIN WRIGHT THE FORTY MEMBER AGENCY HOUSED IN TEMPORARY OFFICES ON THIRTY EIGHTH STREET IN MANHATTAN FAR FROM D. D. B. NEEDHAM'S HEADQUARTERS ON TONY MADISON AVENUE WAS BORN INITIALLY TO CONCENTRATE ON VOLKSWAGEN ITS LEADER MR. BERLIN WAS PRESIDENT OF NEEDHAM'S NEW YORK OFFICE AND ONE OF THE FOUNDERS OF THE RESPECTED SAN FRANCISCO AGENCY GOODBY BERLIN SILVERSTEIN SOME AD EXECUTIVES HAVE SPECULATED THAT MR. BERLIN WAS SHOVED ASIDE AT D. D. B. NEEDHAM BUT HE AND OFFICIALS AT D. D. B. NEEDHAM DENY SUCH RUMORS IF VOLKSWAGEN DOESN'T SEE IMPROVED SALES RESULTS AND BLAMES THE AGENCY BERLIN WRIGHT COULD BE DEALT A NEAR FATAL BLOW THE AGENCY DOES HAVE OTHER CLIENTS NONE OF THEM NEARLY AS BIG AS VOLKSWAGEN HOWEVER THEY INCLUDE THE NEW YORKER VIACOM'S M. T. V. NETWORKS THE WASHINGTON POST AND H. J. HEINZ'S WEIGHT WATCHERS FROZEN FOODS VOLKSWAGEN IS A VERY PLEASANT CAR TO DRIVE SAYS MR. RETTIE OF J. D. POWER IT HAS A PERFECT OPPORTUNITY TO SUCCEED IT HAS TO BREAK THROUGH THE CLUTTER AND GET ITS NAME BACK ON PEOPLE'S SHOPPING LIST QUOTE STERLING WINTHROP INCORPORATED A UNIT OF EASTMAN KODAK COMPANY TAPPED OMNICOM GROUP'S B. B. D. O. TO HANDLE ITS ADVERTISING FOR BAYER ASPIRIN BAYER SELECT ASPIRIN FREE ANALGESICS AND BAYER SELECT COLD AND FLU PRODUCTS THE MOVE CAME FOLLOWING A REVIEW WHICH INCLUDED THE INCUMBENT AGENCY AYER BILLINGS WERE ESTIMATED AT APPROXIMATELY FIFTY MILLION DOLLARS STEVEN G. STAVES PRESIDENT OF STERLING HEALTH U. S. A. SAID IN A STATEMENT THAT IT WAS NOT AN EASY DECISION TO LEAVE AYER WE GREATLY APPRECIATE THE STRONG CREATIVE AND HIGHLY EFFECTIVE EXECUTION WHICH AYER DEMONSTRATED IN HANDLING BAYER DURING THE PAST TWO YEARS THE SELECTION OF B. B. D. O. FOLLOWS A MOVE LAST YEAR TO CONSOLIDATE PAN EUROPEAN AD VERTISING FOR THE COMPANY'S PANADOL ANAL GESICS WITH AMV B. B. D. O. OF LONDON PEPSI SPOT PEPSICO'S PEPSI COLA COMPANY SAID IT HAS STARTED AIRING GLOBALLY THE MYSTERY CHIMP SPOT THAT ALSO WAS SET TO RUN SUNDAY DURING THE SUPER BOWL BROADCAST IT'S AN ANTHROPOLOGICAL TEST COMPARING THE EFFECTS OF DRINKING COKE ON ONE CHIMP WITH THOSE OF PEPSI ON ANOTHER AFTER SIX WEEKS THE COKE CHIMP SHOWS IMPROVEMENT IN MOTOR SKILLS THE PEPSI CHIMP HAS DISAPPEARED BUT HE PHONES IN FROM HIS BEACH BUGGY SURROUNDED BY BIKINI CLAD BABES GREY GREY ADVERTISING NEW YORK NAMED JOHN SHANNON CHAIRMAN AND CHIEF EXECUTIVE OF ITS OFFICES IN EUROPE THE MIDDLE EAST AND AFRICA TO THE NEW POST OF PRESIDENT GREY INTERNATIONAL MR. SHANNON AGE FIFTY SIX RETAINS HIS CURRENT TITLES QUOTE FOR THE PRESENT QUOTE GREY SAID AN EXCERPT FROM THE AUGUST TENTH PRESS CONFERENCE AT THE JUSTICE DEPARTMENT DISCUSSING THE PARK SERVICE POLICE REPORT ON THE DEATH OF DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER CARL STERN IS THE DEPARTMENT'S DIRECTOR OF PUBLIC AFFAIRS FOIA REFERS TO THE FREEDOM OF INFORMATION ACT MR. STERN THANK YOU THANKS A LOT Q. WAIT A MINUTE SIR Q. FROM WHICH OFFICE ARE WE GETTING THE REPORT Q. WHEN IS IT BEING RELEASED MR. STERN AS SOON AS THE FOIA SECTION PROCESSES THE REPORT IT'LL BE AVAILABLE TO YOU THAT HAS ALREADY STARTED BEFORE THIS MEETING EVEN TOOK PLACE Q. DO YOU HAVE TO FILE A REQUEST OR IS IT GOING TO BE RELEASED TO EVERYBODY AT ONCE MR. STERN THE NORMAL PRACTICE OF THE FOIA SECTION IS TO CALL THE PEOPLE WHO HAVE REQUESTED IT AND LET THEM KNOW THAT IT'S AVAILABLE AND TO ASK THEM WHETHER THEY WOULD LIKE IT MAILED OR WOULD THEY LIKE TO PICK IT UP LAUGHTER MR. STERN IF YOU'LL SEND AN FOIA TO PHILIP HEYMANN THE DEPUTY ATTORNEY GENERAL OR TO ME WE'LL MAKE SURE THAT IT GETS UP TO THAT SECTION Q. THE QUESTION IS TO BOTH OF THESE GENTLEMEN HERE YOU SAY THIS MAN WAS IN GREAT DEPRESSION AND HE'D BEEN DISSATISFIED WITH THE GOVERNMENT THEREFORE WE CERTAINLY NEED TO KNOW WHAT DEPARTMENTS AND WHAT AGENCIES OF GOVERNMENT HE TALKED WITH RECENTLY AND THAT WOULD BE IN THE TELEPHONE LOG AND YOU'RE NOT GOING TO MAKE THAT PUBLIC MR. STERN SARAH IF YOU PUT IN A FREEDOM OF INFORMATION ACT REQUEST WE'LL MAKE SURE THAT IT'S HANDLED MR. STERN SARAH I DON'T THINK WE HAVE THAT AVAILABLE AT THIS AT THIS POINT Q. WELL WHY DON'T YOU MR. STERN YOU WANT SOME SPECIAL SERVICING IS THAT IT YOU'RE NOT CONTENT TO WAIT AND DO IT THE NORMAL WAY THROUGH A FREEDOM OF INFORMATION ACT REQUEST Q. GOING TO WAIT ON THAT MR. STERN THANK YOU VERY MUCH UPON READING THIS EXCHANGE WE DID WHAT WE THOUGHT WE WERE BEING ASKED TO DO SUBMIT A FOI REQUEST TO MR. HEYMANN WE RECEIVED A LETTER DATED AUGUST TWENTY FIFTH FROM CHARLENE WRIGHT DEPUTY CHIEF OF THE INITIAL REQUEST UNION OF THE OFFICE OF INFORMATION AND PRIVACY AT THE JUSTICE DEPARTMENT ACKNOWLEDGING RECEIPT OF OUR LETTER ON AUGUST EIGHTEENTH AND EXPLAINING THIS OFFICE HAS A BACKLOG OF INITIAL REQUESTS AS WELL AS LIMITED PERSONNEL RESOURCES AS YOU MAY BE AWARE DOCUMENTS RESPONSIVE TO YOUR REQUEST WILL REQUIRE CONSULTATIONS WITH OTHER DEPARTMENT OF JUSTICE COMPONENTS AND AGENCIES ACCORDINGLY I MUST INFORM YOU THAT WE WILL BE UNABLE TO COMPLY WITH THE STATUTORY TIME REQUIREMENT FOR PROCESSING OF THIS REQUEST ON BEHALF OF THE OFFICE OF THE DEPUTY ATTORNEY GENERAL IN OCTOBER WE VISITED MR. STERN'S OFFICE TO TAKE UP THE INVITATION ALSO ISSUED AT THE AUGUST TENTH PRESS CONFERENCE TO VIEW AN ACTUAL COPY OF THE NOTE DISCOVERED AT THE BOTTOM OF MR. FOSTER'S BRIEFCASE THE TEXT HAD BEEN RELEASED BUT COPIES HAD BEEN WITHHELD QUOTE TO RESPECT THE FAMILY'S WISHES QUOTE TO THE UNTRAINED EYE THE HANDWRITING ON THE NOTE CORRESPONDED WELL ENOUGH WITH A SAMPLE OF MR. FOSTER'S WRITING WE HAD INDEPENDENTLY OBTAINED AT THAT TIME MR. STERN PREDICTED THE FOI REQUEST WOULD BE HONORED WITHIN THE MONTH IT IS NOW THE LAST DAY OF JANUARY AN INDEPENDENT COUNSEL HAS SPECIFIED THAT MR. FOSTER'S APPARENT SUICIDE MUST BE PART OF HIS INQUIRY INTO THE ACTIVITIES SURROUNDING WHITEWATER DEVELOPMENT CORPORATION YET THE REPORT THE FOIA SECTION STARTED WORK ON PRIOR TO THE AUGUST TENTH PRESS CONFERENCE HAS NOT YET BEEN RELEASED WHAT'S MORE THE NEW YORK POST ENTERPRISED ITS OWN REPORT BASED FOR EXAMPLE ON INTERVIEWS WITH GEORGE GONZALEZ A FAIRFAX COUNTY PARAMEDIC WHO SAYS HE WAS THE FIRST RESCUE WORKER TO VIEW THE BODY KORY ASHFORD A TECHNICIAN WHO HELPED PUT THE BODY INTO A BODY BAG AND PARK POLICEMAN KEVIN FORNSHILL THE FIRST POLICE OFFICER AT THE SCENE ACCORDING TO THE POST THEY FOUND THE BODY IN A NEAT CONDITION STILL CLUTCHING THE REVOLVER WITH ARMS PEACEFULLY AT ITS SIDE AND WITH ONLY SLIGHT TRACES OF BLOOD HOMICIDE DETECTIVES INTERVIEWED BY THE POST UNIFORMLY SAID THAT WHEN SOMEONE PUTS A REVOLVER IN HIS MOUTH AND PULLS THE TRIGGER THE RESULT IS A MESS THE POST REPORTS OF LAST THURSDAY AND FRIDAY WHICH ALSO DETAIL APPARENT DISCREPANCIES OVER BALLISTIC TESTING OF THE REVOLVER ARE EITHER WRONG OR RIGHT IF THEY ARE WRONG IT'S A GREAT PITY THE COMPLETE PARK SERVICE POLICE REPORT HAS NOT BEEN RELEASED TO STILL SUCH SPECULATION IF THEY ARE RIGHT THE JUSTICE DEPARTMENT AND THE PARK SERVICE POLICE HAVE HAD A GREAT DEAL TO HIDE EITHER ALTERNATIVE SUGGESTS THAT THE REPORT SHOULD BE RELEASED FORTHWITH ACCORDINGLY WE FILED SUIT IN FEDERAL DISTRICT COURT IN MANHATTAN FRIDAY IN AN ATTEMPT TO GET THE GOVERNMENT TO COMPLY WITH THE REQUIREMENTS OF THE FREEDOM OF INFORMATION ACT WE HAVE ALSO SENT MR. HEYMANN AN ADDITIONAL FOI REQUEST FOR AN ACTUAL COPY OF THE FOSTER NOTE GIVEN WHAT WE NOW KNOW ABOUT PREVIOUSLY SECRET VISITS TO HIS OFFICE THE NIGHT OF HIS DEATH AND THE REMOVAL OF PAPERS IT'S TIME THE HANDWRITING WERE STUDIED BY MORE THAN AN UNTRAINED EYE STRANGE THINGS ARE HAPPENING AT THE JUSTICE DEPARTMENT MR. HEYMANN HAS JUST ANNOUNCED HIS RESIGNATION ON THE SAME DAY JANET RENO'S PERSONAL AIDE LULA RODRIGUEZ DEPARTED AMID AN INVESTIGATION OF ABUSE OF ABSENTEE BALLOTS IN A RELATIVE'S FLORIDA ELECTION CAMPAIGN ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL HAS HAD TO RECUSE HIMSELF FROM WHITEWATER THE DEPARTMENT'S MOST SERIOUS AND SENSITIVE BUSINESS THE PARK POLICE ARE NOW TELLING THE POST THAT IF IT WANTS FURTHER INFORMATION ON MR. FOSTER IT SHOULD USE THE FOI PROCESS THE WHITE HOUSE IS REFUSING TO COMMENT ON THE POST STORIES ON THE GROUNDS THAT THE SPECIAL COUNSEL ROBERT FISKE HAS NOW INCLUDED THAT IN THE SCOPE OF HIS INVESTIGATION WHILE OF COURSE WE HAVE NOT POLLED ALL MAJOR NEWS ORGANIZATIONS THOSE OUR COUNSEL HAS QUERIED REPORT THAT THEY DID NOT GO THROUGH THE FOI FORMALITIES ON THE PARK SERVICE POLICE REPORT RELYING INSTEAD ON PRIVATE ASSURANCES IT WOULD ROUTINELY BE RELEASED WE MIGHT SUGGEST HOWEVER THAT THEY TAKE SOME NOTE OF OUR LAWSUIT WITH ALL THE BACKING AND FILLING WE ARE STARTING TO SMELL THE ISSUE OF WHETHER FOIA AND FOR THAT MATTER SPECIAL COUNSELS CAN BE INVOKED AS PART OF A COVERUP EMPLOYEES AT A SAVINGS AND LOAN OWNED BY BILL CLINTON'S FORMER BUSINESS PARTNER JAMES MCDOUGAL HAD A SECRET INCENTIVE TO MAKE A POLITICAL CONTRIBUTION IN NINETEEN EIGHTY FIVE TO MR. CLINTON THEN GOVERNOR OF ARKANSAS IT WOULDN'T COST THEM A DIME THE EMPLOYEES CONTEND IN INTERVIEWS THAT A MADISON GUARANTY SAVINGS AND LOAN EXECUTIVE PROMISED THAT THEY WOULD BE REIMBURSED FOR WHATEVER THEY CONTRIBUTED AT AN APRIL NINETEEN EIGHTY FIVE FUND RAISER TO HELP RETIRE MR. CLINTON'S NINETEEN EIGHTY FOUR CAMPAIGN DEBT OF FIFTY THOUSAND DOLLARS H. DON DENTON A SENIOR VICE PRESIDENT SAYS HE WAS REIMBURSED FOR A FIVE HUNDRED DOLLAR CONTRIBUTION BUT REFUSES TO SAY WHETHER HE WAS REPAID BY MR. MCDOUGAL OR WITH MADISON GUARANTY FUNDS QUOTE IT COULD BE INCRIMINATING QUOTE MR. DENTON EXPLAINS IF MADISON FUNDS WERE USED SUCH REIMBURSEMENT COULD BE AN ILLEGAL MISUSE OF FEDERALLY INSURED DEPOSITS IF MR. MCDOUGAL'S OWN MONEY WAS USED IT COULD BE AN EVASION OF POLITICAL CONTRIBUTION LIMITS UNDER STATE ELECTION LAW THERE IS NO EVIDENCE THAT EITHER BILL OR HILLARY RODHAM CLINTON KNEW OF THE ALLEGED FUND RAISING GAMBIT BUT IT PROMISES TO BE YET ANOTHER POLITICAL EMBARRASSMENT ARISING FROM THEIR ENTANGLEMENT WITH JIM MCDOUGAL THE S. AND L. EXECUTIVE WHO RODE MADISON GUARANTY FIFTY MILLION DOLLARS INTO THE RED WHILE FAVORING POLITICIANS WITH LOANS AND INVESTMENT OPPORTUNITIES ROBERT B. FISKE JUNIOR THE NEWLY APPOINTED SPECIAL COUNSEL IS SETTING UP SHOP HERE IN LITTLE ROCK TAKING OVER THE GOVERNMENT'S INVESTIGATION OF THE CLINTONS' WHITEWATER DEVELOPMENT COMPANY PARTNERSHIP WITH MR. MCDOUGAL FEDERAL INVESTIGATORS ARE TRYING TO DETERMINE WHETHER MADISON GUARANTY FUNDS WERE ILLEGALLY DIVERTED INTO THE WHITEWATER VACATION HOME DEVELOPMENT IN NORTHERN ARKANSAS OR INTO THE CAMPAIGN COFFERS OF MR. CLINTON AND OTHER POLITICIANS OF SPECIAL INTEREST ARE THE FUNDS RAISED AT THE COCKTAIL PARTY THAT MR. MCDOUGAL HOSTED IN HIS THRIFT'S ART DECO LOBBY AMONG THE FIFTY MADISON EMPLOYEES DIRECTORS AND BORROWERS IN ATTENDANCE WAS A SENIOR EXECUTIVE WHO HELPED MR. MCDOUGAL SOLICIT CONTRIBUTIONS THE EXECUTIVE WHO WOULD SPEAK ONLY ON THE CONDITION OF ANONYMITY SAYS HE MAY HAVE MADE A CONTRIBUTION HIMSELF HE DOESN'T RECALL WHETHER IT WAS FIVE HUNDRED DOLLARS OR ONE THOUSAND DOLLARS WITH THE UNDERSTANDING THAT HE WOULD BE PAID BACK DAVIS FITZHUGH VICE PRESIDENT OF A MADISON SUBSIDIARY SAYS HE WAS APPROACHED BY THIS EXECUTIVE BUT DECLINED TO GO ALONG WITH THE FUND RAISING STRATAGEM I WAS LEFT WITH THE DISTINCT IMPRESSION THAT I WOULD BE REIMBURSED SAYS MR. FITZHUGH IT WASN'T SOMETHING I WANTED TO GET INVOLVED IN MEANWHILE ANOTHER EMPLOYEE LARRY KUCA WHO AT THE TIME WAS MANAGING A MADISON REAL ESTATE VENTURE ON CAMPOBELLO ISLAND OFF THE CANADIAN COAST SAYS HE CONTRIBUTED ONE THOUSAND DOLLARS TO GOVERNOR CLINTON AT MR. MCDOUGAL'S REQUEST BUT WITHOUT A PROMISE OF REPAYMENT INSTEAD HE SAYS MR. MCDOUGAL POINTED OUT HOW MUCH MR. KUCA WOULD BE REAPING IN REAL ESTATE COMMISSIONS THESE CONTRIBUTIONS ALL PERSONAL CHECKS HELPED SWELL THE TOTAL TAKE FROM THE FUND RAISER TO ABOUT THIRTY THOUSAND DOLLARS FEDERAL INVESTIGATORS ALREADY ARE INQUIRING ABOUT TWELVE THOUSAND DOLLARS IN CASHIER'S CHECKS ISSUED BY MADISON INCLUDING SOME FROM MR. MCDOUGAL'S PERSONAL AND CORPORATE ACCOUNTS ONE CHECK FOR THREE THOUSAND DOLLARS BORE THE NAME OF KEN PEACOCK SON OF A MADISON DIRECTOR AND A MAJOR BORROWER AT THE TIME OF THE FUND RAISER MR. PEACOCK WAS A TWENTY FOUR YEAR OLD COLLEGE STUDENT LAST MONTH HE DENIED MAKING SUCH A CONTRIBUTION INVESTIGATORS ARE ALSO TRYING TO TRACE THE SOURCE OF FUNDS FOR A THREE THOUSAND DOLLAR CASHIER'S CHECK FROM MR. MCDOUGAL MR. CLINTON USED THE CONTRIBUTIONS TO HELP PAY OFF THE FIFTY THOUSAND DOLLAR LOAN THAT HE HAD OBTAINED FROM A BANK IN CHERRY VALLEY ARKANSAS TOWARD THE CLOSE OF THE NINETEEN EIGHTY FOUR CAMPAIGN FEDERAL INVESTIGATORS HAVE SUBPOENAED RECORDS FROM THE CHERRY VALLEY BANK AS WELL AS WHATEVER RECORDS ARE STILL AVAILABLE FROM THE NINETEEN EIGHTY FOUR CAMPAIGN CERTAIN RECORDS INCLUDING THE LIST OF CONTRIBUTORS FROM THE FUND RAISER HAVE BEEN DISCARDED OR LOST MR. MCDOUGAL WHO COULDN'T BE REACHED FOR COMMENT HAS DENIED ILLEGALLY FUNNELING MONEY INTO THE CAMPAIGN OR THE WHITEWATER VENTURE HIS ATTORNEY SAM HEUER SAYS MR. MCDOUGAL DIDN'T DO ANYTHING WRONG AND DISMISSES THE NOTION OF EMPLOYEE REIMBURSMENT FOR CONTRIBUTIONS AS JUST ANOTHER SMOKE TRAIL FOR MR. MCDOUGAL THROWING A PARTY FOR THE GOVERNOR WAS HARDLY EXTRAORDINARY BY ALL ACCOUNTS MR. MCDOUGAL A FAILED POLITICIAN HIMSELF REVELED IN HOBNOBBING WITH ELECTED OFFICIALS HE ALSO SOUGHT TO INGRATIATE HIMSELF BY DOING FINANCIAL FAVORS SUCH AS CUTTING THE CLINTONS INTO THE WHITEWATER REAL ESTATE DEAL IN NINETEEN SEVENTY EIGHT AND PUTTING HILLARY CLINTON'S LAW FIRM ON A TWO THOUSAND DOLLAR A MONTH RETAINER IN APRIL NINETEEN EIGHTY FIVE AFTER THE GOVERNOR HAD COMPLAINED ABOUT BEING FINANCIALLY STRAPPED MCDOUGAL BRAGGED ABOUT WHAT HE COULD GET DONE ABOUT GREASING THE SKIDS SAYS MR. FITZHUGH AND IT APPEARS THAT HE DID GET THINGS DONE SUCH AS FINDING RENTERS FOR OFFICE SPACE AT MADISON GUARANTY THE ARKANSAS DEVELOPMENT FINANCE AUTHORITY A CLINTON BRAINCHILD MOVED INTO THE THRIFT'S'S MAROON HEADQUARTERS IN NINETEEN EIGHTY FIVE WHEN OFFICES IN A MORE CONVENIENT LOCATION LITTLE ROCK'S FINANCIAL DISTRICT WERE GOING UNRENTED AT COMPARABLE RATES ANOTHER STATE AGENCY LEASED A MCDOUGAL RENOVATED SERVICE STATION ACROSS THE STREET FROM THE S. AND L. FOR SEVEN THOUSAND FOUR HUNDRED THIRTY TWO DOLLARS A MONTH ADDING TO MR. MCDOUGAL'S IMAGE AS A MAN WHO COULD GET THINGS DONE WAS MR. CLINTON'S MARCH NINETEEN EIGHTY FIVE APPOINTMENT OF JOHN LATHAM MADISON GUARANTY'S CHIEF EXECUTIVE OFFICER TO THE ARKANSAS SAVINGS AND LOAN BOARD IN BANKING AND POLITICAL CIRCLES BEFORE MR. MCDOUGAL WAS OUSTED FROM MADISON BY FEDERAL REGULATORS IN MID NINETEEN EIGHTY SIX AND TRIED AND ACQUITTED OF BANK FRAUD CHARGES IN NINETEEN NINETY HE WAS WIDELY ADMIRED FOR HIS FOLKSY CHARM AND PERSUASIVENESS MR. KUCA RECALLS HOW MR. MCDOUGAL TELEPHONED HIM ON CAMPOBELLO ISLAND AND TALKED HIM INTO CONTRIBUTING ONE THOUSAND DOLLARS TO GOVERNOR CLINTON IT WASN'T GIVE THE MONEY OR ELSE HE SAYS QUOTE IT WAS ACTUALLY VERY POLITE QUOTE AT THE TIME MR. KUCA WAS EARNING ONE HUNDRED THOUSAND DOLLARS A YEAR IN COMMISSIONS PLUS A SMALL SALARY SELLING OCEANFRONT LOTS HE POINTED OUT HOW WELL THINGS WERE GOING MR. KUCA SAYS HE DIDN'T HAVE TO BE CRUDE ABOUT IT ON THE OTHER HAND THE MADISON EXECUTIVE WHO SOLICITED CONTRIBUTIONS IN LITTLE ROCK WAS DECIDEDLY MORE BLUNT ACCORDING TO DON DENTON THE THRIFT'S SENIOR VICE PRESIDENT HE SAID I NEED A CHECK FOR FIVE HUNDRED DOLLARS I MADE OUT MY CHECK TO BILL CLINTON I WAS REIMBURSED FOR IT TWO ARKANSAS STATE AGENCIES RENTED SPACE IN AN OFFICE BUILDING AND A RENOVATED SERVICE STATION OWNED BY MADISON GUARANTY SAVINGS AND LOAN IN NINETEEN EIGHTY FIVE FOR A TOTAL OF SEVEN THOUSAND FOUR HUNDRED THIRTY TWO DOLLARS A MONTH AN ARTICLE MONDAY INCORRECTLY REPORTED THAT THE RENT ON THE SERVICE STATION ALONE TOTALED SEVEN THOUSAND FOUR HUNDRED THIRTY TWO DOLLARS FAR FROM SILICON VALLEY OR WALL STREET ENTREPRENEUR FORUMS PROLIFERATE AT THE FLORIDA VENTURE FORUM'S ANNUAL CONFERENCE HELD AT CORAL GABLES EARLIER THIS MONTH TWENTY ONE COMPANIES MADE PITCHES FOR FINANCING FINANCIERS FROM EIGHTEEN VENTURE CAPITAL FIRMS ATTENDED SOME FROM AS FAR AWAY AS MINNESOTA AND MASSACHUSETTS THE FLORIDA SHOWCASE IS ONE OF MANY OUTSIDE THE HIGH TECH CAPITALS THAT SMALL COMPANIES NOW CAN ATTEND TO PUBLICIZE THEIR BUSINESSES AND ATTRACT INVESTORS SIMILAR EVENTS IN OTHER CITIES SUCH AS BALTIMORE CLEVELAND DES MOINES IOWA AND INDIANAPOLIS ARE ATTRACTING ENTHUSIASTIC SMALL BUSINESS AUDIENCES REPRESENTATIVES OF MORE THAN SIXTY COMPANIES ATTENDED BALTIMORE'S MIDDLE ATLANTIC VENTURE CONFERENCE IN OCTOBER AND IOWA'S CONFERENCE LAST SEPTEMBER DREW PEOPLE FROM ABOUT FIFTEEN COMPANIES AND MORE THAN THIRTY VENTURE CAPITALISTS THE LARGE NUMBERS OF COMPANIES PARTICIPATING INDICATE THAT THE VENTURE CAPITAL WORLD BEYOND THE NORTHEAST CORRIDOR AND SILICON VALLEY IS GROWING SAYS VENTURE CAPITALIST ROBERT PINKAS MANAGING GENERAL PARTNER OF BRANTLEY VENTURE PARTNERS IN CLEVELAND THESE CONFERENCES INTRODUCE INVESTORS TO REGIONAL ECONOMIES AND TO SPECIFIC COMPANIES HE SAYS FORUMS IN WHICH ENTREPRENEURS ENGAGE INVESTORS AREN'T NEW IN THE LATE NINETEEN SEVENTIES AND EARLY EIGHTIES INVESTORS FLOCKED TO THE MONTEREY CALIFORNIA TECHNOLOGY CONFERENCE SPONSORED BY THE AMERICAN ELECTRONICS ASSOCIATION LATER A PLETHORA OF COPYCAT CONFERENCES DIMINISHED THE FORMAT'S IMPACT VENTURE CAPITALISTS SAY BUT WITHIN THE PAST TWO YEARS THE FORUMS HAVE CHANGED AND ARE MORE LIKELY TO LEAD TO SPECIFIC DEALS THEY ARE ATTRACTING MORE ESTABLISHED COMPANIES AND INVESTORS SAYS DAVID GILLECE A BALTIMORE ECONOMIC DEVELOPMENT CONSULTANT VENTURE CAPITALISTS NOW ENCOURAGE COMPANIES IN WHICH THEY HOLD STAKES TO APPEAR AT THESE PAGEANTS TO ATTRACT NEW INVESTORS QUOTE THEY HAVE BECOME REAL BUSINESS TRANSACTION EVENTS QUOTE SAYS MR. GILLECE THE LAST TWO FLORIDA CONFERENCES FOR EXAMPLE HAVE RESULTED IN MORE THAN THIRTY TWO MILLION DOLLARS IN FINANCING FOR SOME COMPANIES THAT PARTICIPATED SAYS JEANNE BECKER EXECUTIVE DIRECTOR OF THE FLORIDA FORUM OF THE SIXTY FIVE COMPANIES THAT HAVE ATTENDED THE IOWA CONFERENCES SEVEN HAVE GAINED FINANCING THROUGH THE MEETINGS VENTURE CAPITALISTS ARE LOOKING TO THE YOUNG COMPANIES THAT PARTICIPATE IN THESE CONFERENCES BECAUSE START UP INVESTING IS BACK IN VOGUE SAYS RICHARD TADLER A GENERAL PARTNER OF T. A. ASSOCIATES BOSTON NOT EVERY COMPANY THAT WANTS TO MAKE PRESENTATIONS CAN GET IN SAYS MYRT LEVIN EXECUTIVE DIRECTOR OF THE IOWA CONFERENCE SELECTED APPLICANTS RECEIVE EXTENSIVE HELP WITH BUSINESS PLANS AND PRESENTATIONS SAYS MS. LEVIN OF THE PARTICIPANTS EVEN IF THEY DON'T GET FUNDED THEY GO AWAY LEARNING A LOT ABOUT THEMSELVES THIS OF COURSE IS NOT THE MAIN OBJECT SOME VENTURE CAPITALISTS WERE BIG WINNERS IN LAST YEAR'S I. P. O. BOOM INVESTORS IN COMPANIES WHOSE STOCK PRICES SOARED AFTER INITIAL PUBLIC OFFERINGS IN NINETEEN NINETY THREE INCLUDE MORGENTHALER VENTURES CLEVELAND BANKAMERICA CAPITAL CORPORATION COSTA MESA CALIFORNIA J. H. WHITNEY AND COMPANY NEW YORK GRACE HORN VENTURES CUPERTINO CALIFORNIA AND WALDEN GROUP OF VENTURE CAPITAL FUNDS SAN FRANCISCO AMONG OTHERS A SURVEY INDICATES VENTUREONE A SAN FRANCISCO RESEARCH CONCERN CONDUCTED THE STUDY COVERING NINETEEN NINETY THREE I. P. O.S OF COMPANIES BACKED BY VENTURE CAPITALISTS MORGENTHALER BANKAMERICA WALDEN AND WHITNEY ALL WERE INVESTORS IN MICROCHIP TECHNOLOGY INCORPORATED A CHANDLER ARIZONA CHIP MAKER BY YEAR END MICROCHIP'S STOCK HAD RISEN SIXFOLD TO THIRTY NINE DOLLARS A SHARE FROM SIX DOLLARS AND FIFTY CENTS MORGENTHALER BANKAMERICA AND GRACE HORN WERE INVESTORS IN VICAL INCORPORATED A BIOTECHNOLOGY START UP WHOSE STOCK NEARLY TRIPLED TO THIRTEEN DOLLARS AND FIFTY CENTS FROM FIVE DOLLARS WALDEN ALSO BENEFITED FROM A MORE THAN DOUBLING IN THE SHARE PRICE OF GYMBOREE CORPORATION A RETAILER OF TOYS AND CLOTHES GRACE HORN'S OTHER WINNERS INCLUDED INTERLINK ELECTRONICS A MAKER OF TOUCH SENSITIVE ELECTRONIC COMPONENTS AND HOMETOWN BUFFET INCORPORATED A CHAIN OF BUFFET STYLE RESTAURANTS INTERLINK STOCK MORE THAN DOUBLED AFTER ITS I. P. O. HOMETOWN BUFFET SHARES INCREASED BY EIGHTY EIGHT PERCENT VENTUREONE ALSO LISTED CONCERNS HOLDING STAKES IN COMPANIES WHOSE STOCK PRICES NOSEDIVED AFTER THEIR I. P. O.S THESE INCLUDED ALPHA PARTNERS MENLO PARK CALIFORNIA CROSSPOINT VENTURE PARTNERS LOS ALTOS CALIFORNIA D. BLECH AND COMPANY NEW YORK. NEW ENTERPRISE ASSOCIATES SAN FRANCISCO AND SCHRODER VENTURES NEW YORK AMONG OTHERS ALPHA PARTNERS HAD INVESTED IN BOTH PHOTONICS CORPORATION AND SUPERCONDUCTOR TECHNOLOGIES INCORPORATED SHARES OF PHOTONICS A COMPUTER NETWORKING COMPANY FELL THIRTY ONE PERCENT WHILE THOSE OF SUPERCONDUCTOR A DEVELOPER OF SUPERCONDUCTING MATERIALS DECLINED THIRTY SIX PERCENT CROSSPOINT ALSO AN INVESTOR IN PHOTONICS HAD ANOTHER LOSER IN ADAPTIVE SOLUTIONS INCORPORATED A SPECIALTY SEMICONDUCTOR MANUFACTURER ADAPTIVE SHARES WERE DOWN FIFTY FOUR PERCENT NEW ENTERPRISE ASSOCIATES ONE OF THE LARGEST VENTURE CAPITAL FIRMS ALSO HAD SOME BIG LOSERS SIX OF THE TEN COMPANIES IN ITS PORTFOLIO DECLINED IN PRICE AFTER THEIR I. P. O.S ITS LOSERS INCLUDED BIOSURFACE TECHNOLOGY INCORPORATED A BIOTECHNOLOGY START UP THAT IS DEVELOPING ARTIFICIAL SKIN PRODUCTS TELOR PHARMACEUTICALS INCORPORATED A MAKER OF OPTHALMIC PRODUCTS AND AUTOIMMUNE INCORPORATED A START UP THAT IS WORKING ON IMMUNE SYSTEM DISEASES SUCH AS AIDS IN SPITE OF NEW ENTERPRISE'S PERFORMANCE THE VENTURE CAPITAL FIRM HAD LITTLE DIFFICULTY RAISING A NEW ONE HUNDRED NINETY THREE MILLION DOLLAR FUND LAST DECEMBER S. B. I. C.S SAY NEW BANKING PROPOSALS WILL REDUCE THEIR ABILITY TO INVEST UNDER THE COMMUNITY REINVESTMENT ACT BANKS MUST ALLOCATE CAPITAL FOR COMMUNITY RELATED INVESTMENTS HISTORICALLY THEY HAVE RECEIVED CREDIT UNDER THE ACT FOR ALL EQUITY INVESTMENTS IN SMALL BUSINESSES THAT THEY MADE THROUGH SMALL BUSINESS INVESTMENT COMPANIES OR S. B. I. C.S NEW REGULATORY GUIDELINES WILL ALLOW BANKS TO RECEIVE C. R. A. CREDIT FOR ONLY THOSE INVESTMENTS THAT BENEFIT LOW AND MODERATE INCOME GEOGRAPHIES OR PERSONS THE NARROWER GUIDELINES WILL REDUCE THE INCENTIVE FOR BANKS TO INVEST THROUGH S. B. I. C.S CONTENDS PETER F. MCNEISH PRESIDENT OF THE NATIONAL ASSOCIATION OF SMALL BUSINESS INVESTMENT COMPANIES THE INDUSTRY TRADE GROUP BANKS ACCOUNT FOR ALMOST TWO BILLION DOLLARS OF THE ROUGHLY THREE BILLION DOLLARS IN ASSETS THAT S. B. I. C.S CURRENTLY MANAGE AND THE LOSS OF C. R. A. CREDIT FOR THEIR SMALL BUSINESS INVESTMENTS MIGHT FORCE THEM TO CURTAIL THEIR INVESTING SAYS MR. MCNEISH STILL SOME S. B. I. C.S DON'T FEEL THEY WILL BE IMMEDIATELY AFFECTED I DON'T SEE IT CHANGING THE WAY WE INVEST SAYS TOM ADAMEK PRESIDENT OF PREMIER VENTURE CAPITAL CORPORATION THE S. B. I. C. OF PREMIER BANK IN BATON ROUGE LOUISIANA THAT INVESTED THREE POINT FIVE MILLION DOLLARS LAST YEAR BUT FOR BANKS THAT HAVE BEEN USING S. B. I. C.S AS A WAY TO MEET C. R. A. GUIDELINES THE NEW RULES WILL BE A BLOW HE SAYS STANLEY JAFFE WAS ANGRY AGAIN THE PRESIDENT OF PARAMOUNT COMMUNICATIONS INCORPORATED A MAN WHOSE EXPLOSIVE TEMPER HAD BECOME LEGENDARY INSIDE HIS COMPANY HAD ASSEMBLED A DOZEN OR SO DIVISION HEADS AT THE FIRM'S LOS ANGELES MOVIE STUDIO AND HE WAS BERATING THEM FURIOUS MR. JAFFE ROSE FROM HIS SEAT SAY TWO WITNESSES TO THE SCENE HIS VOICE GREW LOUDER UNTIL HE WAS YELLING SO HARD THAT THOUGH HE WASN'T AWARE OF IT AT FIRST HIS NOSE BEGAN TO BLEED QUOTE HE DIDN'T REALIZE THAT HIS NOSE WAS STREAMING BLOOD QUOTE SAYS ONE PERSON WHO WAS THERE NO ONE WANTED TO SAY ANYTHING WE JUST SAT THERE IN A MIXED EMOTION OF HORROR AND JOY MR. JAFFE DENIES THE TALE BUT THE VOLATILE FIFTY TWO YEAR OLD EXECUTIVE ADMITS TO WHAT HE HAS CALLED AN IN YOUR FACE MANAGEMENT STYLE A ONETIME MOVIE PRODUCER WHOSE BIGGEST HIT WAS FATAL ATTRACTION MR. JAFFE HAS LARGELY OVERSEEN PARAMOUNT'S DAY TO DAY OPERATIONS SINCE NINETEEN NINETY ONE WHEN HE WAS BROUGHT IN BY PARAMOUNT'S HIGH PROFILE CHAIRMAN MARTIN S. DAVIS ALTHOUGH MR. JAFFE HAS MOSTLY STAYED BEHIND THE SCENES IN THE BATTLE BETWEEN VIACOM INCORPORATED AND Q. V. C. NETWORK INCORPORATED TO BUY PARAMOUNT HE HAS BEEN A SWAGGERING AND EVEN FRIGHTENING PRESENCE INSIDE THE COMPANY BUT BY MANY MEASURES HIS THREE YEAR TENURE HAS BEEN A DISAPPOINTMENT WHEN HE WAS HIRED PARAMOUNT'S BIG HOLLYWOOD STUDIO THE COMPANY'S LARGEST UNIT WAS MIRED IN PROBLEMS ITS POOR RESULTS HAD DRAGGED DOWN EARNINGS FOR THE WHOLE COMPANY WHICH ALSO OWNS PUBLISHER SIMON AND SCHUSTER AND THE KNICKERBOCKERS BASKETBALL AND RANGERS HOCKEY TEAMS YET MR. JAFFE WHO HAD LITTLE EXPERIENCE AS A CORPORATE EXECUTIVE HASN'T FIXED MANY OF THE TROUBLES INCLUDING TOO FEW MOVIE RELEASES AND TOO MANY FLOPS ON THE ORDER OF LAST YEAR'S CONEHEADS EVEN AS PARAMOUNT'S SHARE PRICE RISES IN THE OVERHEATED BIDDING WAR ITS EARNINGS ARE LACKLUSTER THROWING INTO QUESTION THE VALUE OF THE VERY ASSETS VIACOM AND Q. V. C. ARE BATTLING TO SEIZE ITS CROWN JEWEL THE PARAMOUNT STUDIO IS MIRED IN A DEEP BOX OFFICE SLUMP THAT EVEN TWO BIG HITS QUOTE THE FIRM QUOTE AND QUOTE INDECENT PROPOSAL QUOTE HAVEN'T REVERSED STEADY GAINS AT SIMON AND SCHUSTER HAVEN'T BEEN ENOUGH TO COMPENSATE FOR THE STUDIO'S POOR RESULTS MORALE HAS PLUNGED NOW MR. DAVIS IS FAULTING HIS SECOND IN COMMAND'S MANAGEMENT FOR PARAMOUNT'S LOOMING LOSS OF INDEPENDENCE ACCORDING TO INSIDERS AND DIRECTORS THE TENSION BETWEEN THE TWO MEN ONCE FRIENDS IS PALPABLE THE GRUFF PLAIN SPOKEN MR. DAVIS HAS BEEN BAD MOUTHING HIS HAND PICKED DEPUTY TO DIRECTORS ASSOCIATES AND INDUSTRY EXECUTIVES THEY SAY JAFFE BLEW MY COMPANY ONE SENIOR INSIDER QUOTES MR. DAVIS AS HAVING SAID IN AN INTERVIEW IN HIS SPRAWLING FORTY SECOND FLOOR OFFICE OVERLOOKING NEW YORK'S SNOW COVERED CENTRAL PARK MR. DAVIS OFFERS A TEPID DENIAL OF SUCH REPORTS HE'S DONE HIS JOB WE ARE SATISFIED HE SAYS PALE AND BATTLING HIS THIRD COLD SINCE THE FOUR AND A HALF MONTH TAKEOVER STRUGGLE BEGAN MR. DAVIS SIXTY SIX DECLINES TO ELABORATE WHEN ASKED WHETHER MR. JAFFE HAS RETAINED THE BOARD'S CONFIDENCE MR. DAVIS SAYS YES BUT QUICKLY ADDS THAT THERE ARE VARIED VIEWS OF DIRECTORS ABOUT HIS DEPUTY SOME JAFFE SUPPORTERS CHARGE THAT MR. DAVIS AND HIS BOARD ARE CASTING THE PARAMOUNT PRESIDENT AS A SCAPEGOAT AFTER ALL MR. JAFFE DIDN'T START PARAMOUNT'S TROUBLES AND HIS BOSS IS THE ONE WHO HAS SHAPED PARAMOUNT AND DETERMINED ITS COURSE THE BLAME GAME SOME INSIDERS ARE CALLING THE FINGER POINTING MR. JAFFE'S SUPPORTERS CONTEND THAT HE HAS GOTTEN THE STUDIO BACK ON TRACK WITH A STRONG SLATE OF FILMS SCHEDULED FOR THIS YEAR QUOTE UNDER STANLEY'S AEGIS THEY HAVE REALLY REVITALIZED THE STUDIO QUOTE SAYS JAMES WIATT PRESIDENT OF INTERNATIONAL CREATIVE MANAGEMENT THE BIG TALENT AGENCY STILL MANY CURRENT AND FORMER PARAMOUNT EXECUTIVES SAY MR. JAFFE'S HOUR UNDER THE SPOTLIGHT IS LONG OVERDUE MR. JAFFE CONCEDES THAT HE IS LIKELY TO BE OUT OF A JOB ONCE PARAMOUNT IS UNDER A NEW OWNER WHETHER IT IS FRIENDLY SUITOR VIACOM OR UNINVITED BIDDER Q. V. C. AND MANY PARAMOUNT INSIDERS ALONG WITH HOLLYWOOD PRODUCERS AND OTHERS WHO HAVE WORKED WITH THE STUDIO COULDN'T BE HAPPIER STORIES ABOUND OF MR. JAFFE'S HARSH TREATMENT OF SUBORDINATES SOMETIMES BLISTERING EVEN BY THE STANDARDS OF HOLLYWOOD WHERE SCREAMING IS A COMMON MANAGEMENT TOOL DURING HIS TENURE PARAMOUNT HAS HIRED HIS RELATIVES AND FRIENDS FOR IMPORTANT JOBS EVEN THOUGH THE COMPANY FROWNS ON NEPOTISM HE HAS SPENT LAVISHLY FROM PARAMOUNT COFFERS BUT PUT THE REST OF THE COMPANY ON A DIET OF AUSTERITY RATHER THAN ARTICULATE A STRATEGIC VISION FOR THE COMPANY HE HAS MICROMANAGED FOCUSING ON THE MINUTIAE OF CASTING OR EDITING MOVIES SOMETIMES MAKING END RUNS AROUND OTHER EXECUTIVES AND ALIENATING EMPLOYEES IN THE PROCESS AND HE HAS LAVISHED WHAT SOME INSIDERS CONSIDER AN INORDINATE AMOUNT OF ATTENTION ON THE SPORTS TEAMS WHICH ACCOUNT FOR ONLY ABOUT ONE PERCENT OF PARAMOUNT'S FOUR POINT THREE BILLION DOLLARS IN REVENUE IN A THREE HOUR INTERVIEW AN ALTERNATELY CHARMING AND BLUNT MR. JAFFE ADMITS HE DOESN'T SUFFER FOOLS WELL AND HAS AN EXPLOSIVE TEMPER I CAN INTIMIDATE PEOPLE HE SAYS HE CALLS THE STUDIO'S BUMPY FINANCIAL PERFORMANCE AND THE LOW NUMBER OF FILMS IT HAS RELEASED HIS ONE DISAPPOINTMENT BUT HE SAYS THAT HE IS PROUD OF HIS ACCOMPLISHMENTS AND THAT PARAMOUNT IS POISED TO REAP THE FINANCIAL REWARDS OF HIS WORK IN THE NEXT FISCAL YEAR SECURITIES ANALYSTS HOWEVER ARE TRIMMING THEIR NINETEEN NINETY FIVE EARNINGS PROJECTIONS SOME BY AS MUCH AS TWENTY PERCENT FROM INITIAL ESTIMATES BASED ON PARAMOUNT'S CONTINUING BOX OFFICE MALAISE ANALYSTS ESTIMATE EARNINGS FOR FISCAL NINETEEN NINETY FOUR ENDING APRIL THIRTIETH WILL BE ROUGHLY FLAT TO DOWN BEFORE REBOUNDING SOMEWHAT IN FISCAL NINETEEN NINETY FIVE FROM THE START MR. JAFFE WAS REGARDED AS IN SOME WAYS AN ODD CHOICE FOR THE CORPORATE POST AT PARAMOUNT ALTHOUGH THERE WAS NO QUESTION ABOUT HIS KNOWLEDGE OF MOVIES THE SON OF RETIRED COLUMBIA PICTURES CHAIRMAN LEO JAFFE MR. JAFFE GREW UP IN NEW ROCHELLE N. Y. IMMERSED IN THE DETAILS OF MOVIE MAKING AT TWENTY EIGHT HE PRODUCED HIS FIRST FEATURE FILM THE HIT GOODBYE COLUMBUS IN THE NINETEEN SEVENTIES HE WAS A SENIOR EXECUTIVE AT BOTH COLUMBIA AND PARAMOUNT BUT HE SOON LEFT THE MANAGEMENT TRACK SPENDING THE NINETEEN EIGHTIES PRODUCING MOVIES FOR THE PARAMOUNT STUDIO WITH PARTNER SHERRY LANSING THEIR BIGGEST HIT QUOTE FATAL ATTRACTION QUOTE GROSSED ABOUT THREE HUNDRED FORTY FIVE MILLION DOLLARS WORLDWIDE HE HAD DIRECTED ONE MOVIE WITHOUT A TRACE AND WAS SET TO DIRECT ANOTHER SCHOOL TIES IN NINETEEN NINETY ONE WHEN HE BEGAN TO DISCUSS THE PROBLEMS AT PARAMOUNT'S STUDIO WITH MR. DAVIS WHOM HE HAD KNOWN FOR MORE THAN TWO DECADES AT THE TIME THE STUDIO WAS HAMPERED BY BLOATED COSTS TOO FEW MOVIES AND A SERIES OF BOX OFFICE BOMBS SUCH AS THE TWO JAKES AND DAYS OF THUNDER MR. DAVIS WAS UNDER PRESSURE FROM SHAREHOLDERS TO IMPROVE THE STOCK PRICE AND TO LINE UP A SUCCESSOR SINCE HE HAD OPERATED THE PARENT COMPANY WITHOUT A SECOND IN COMMAND FOR NEARLY SIX YEARS MR. JAFFE WAS DETERMINED TO BE THAT PERSON CONVINCED HE HAD FOUND HIS SUCCESSOR MR. DAVIS NAMED MR. JAFFE TO THE NEW POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER BUT HIS DEPUTY ACCUSTOMED TO MOVIE MAKING NOT MANAGING WASTED NO TIME IN ALIENATING SCORES OF EMPLOYEES FRANK MANCUSO PARAMOUNT'S STUDIO CHIEF AND A THIRTY YEAR COMPANY VETERAN WAS SO ANGERED BY THE MOVE THAT HE REFUSED TO REPORT TO MR. JAFFE CITING CONTRACT TERMS THAT SAID HE WOULD REPORT ONLY TO MR. DAVIS HE FILED SUIT THE APPROXIMATELY TWENTY FIVE MILLION DOLLAR SETTLEMENT THAT PARAMOUNT ENDED UP PAYING HIM CONTRIBUTED TO A FIFTY TWO MILLION DOLLAR CHARGE AT THE COMPANY IN THE NINETEEN NINETY ONE FISCAL YEAR ENDED OCTOBER THIRTY FIRST THE FIRM HAS SINCE SHIFTED TO AN APRIL FISCAL YEAR RANK AND FILE EMPLOYEES WEREN'T MUCH HAPPIER ONE OF MR. JAFFE'S FIRST MOVES WAS TO EMBARK ON A TOUR OF OPERATIONS ORDERING DISMISSALS ALONG THE WAY OF ABOUT FOUR HUNDRED STAFFERS IN ITS NINETEEN NINETY ONE ANNUAL REPORT PARAMOUNT SAID IT EXPECTED TO REALIZE MORE THAN FIFTY MILLION DOLLARS IN OVERHEAD REDUCTIONS YET AS THE AX WAS FALLING MR. JAFFE RILED EMPLOYEES WITH DISPLAYS OF HIS OWN INDULGENCE H. G. MAGAZINE RAN A PHOTO SPREAD OF HIS THIRTY TWO ACRE ESTATE IN UPSTATE NEW YORK WHICH HE HAD JUST COMPLETELY RENOVATED WITH HIS SECOND WIFE THE ARTICLE LAVISHED ATTENTION ON HIS PRICELESS COLLECTION OF ENGLISH ANTIQUES AND NOTED THAT HE SPARED NO EXPENSE MR. JAFFE WAS QUOTED AS SAYING THAT HE COULD HAVE BOUGHT A HOUSE FOR THE PRICE OF THE DECORATIVE TRIM LATER PARAMOUNT BUILT A SCREENING ROOM FOR HIM THERE AT A COST OF ONE POINT FIVE MILLION DOLLARS IT BELONGS TO PARAMOUNT BUT NOTES A PROXY STATEMENT MR. JAFFE HAS AN OPTION TO BUY IT AT A DISCOUNT SHOULD HE NO LONGER BE ASSOCIATED WITH THE COMPANY MR. JAFFE ALSO HAD PARAMOUNT BUY A SECOND CORPORATE JET FOR SIX MILLION DOLLARS OR SEVEN MILLION DOLLARS INSIDERS SAY HE WANTED IT LARGELY TO FERRY HIM BETWEEN NEW YORK AND THE HOLLYWOOD STUDIO AS WELL AS TO FLY HIM TO KNICKS AND RANGERS GAMES SINCE THE OTHER CORPORATE JET WAS OFTEN USED BY EXECUTIVES AND MOVIE STARS MR. JAFFE REPLIES THAT THE JET WASN'T FOR HIS EXCLUSIVE USE AND SAYS HE REMEMBERS USING IT ONLY ONCE TO TRAVEL TO A GAME THE PLANE WAS A NECESSARY AFFORDABLE TOOL TO RUN THE COMPANY HE SAYS THE BELT TIGHTENING AT THE REST OF THE COMPANY DIDN'T SEEM TO DENT THE GENEROUS REWARDS MESSRS JAFFE AND DAVIS REAPED SINCE JOINING THE COMPANY MR. JAFFE HAS COLLECTED A PACKAGE OF STOCK AND STOCK OPTIONS WORTH ABOUT SIXTY MILLION DOLLARS BEFORE HIS COSTS UNDER Q. V. C.'S CURRENT OFFER MR. DAVIS'S CURRENT STOCK POSITION WOULD BE WORTH ABOUT ONE HUNDRED FIFTY FIVE MILLION DOLLARS ON TOP OF THAT PARAMOUNT HAS PAID MR. JAFFE AT LEAST SEVEN MILLION DOLLARS IN SALARY BONUSES AND LONG TERM CASH COMPENSATION AS WELL ONE MILLION DOLLARS UNDER HIS OLD PRODUCTION DEAL WITH THE COMPANY AND HIS EMPLOYMENT CONTRACT HOLDS THAT IF A NEW OWNER BOOTS HIM OR IF HE QUITS FOR QUOTE GOOD REASON QUOTE HE COLLECTS HIS ANNUAL SALARY OF SEVEN HUNDRED SIXTY THOUSAND DOLLARS THROUGH FEBRUARY NINETEEN NINETY SEVEN DESPITE THE FIRINGS HE ORDERED MR. JAFFE'S RELATIVES AND ACQUAINTANCES BEGAN APPEARING ON THE PAYROLL IN LATE NINETEEN NINETY ONE HIS SON ROBERT THEN TWENTY SIX JOINED THE STUDIO AS A ONE HUNDRED TWENTY FIVE THOUSAND DOLLAR A YEAR VICE PRESIDENT AT PARAMOUNT'S MUSIC PUBLISHING ARM FAMOUS MUSIC PUBLISHING COMPANIES INDUSTRY VETERAN IRWIN ROBINSON A LONG TIME JAFFE ACQUAINTANCE WAS HIRED FOR THE NEW POST OF CHIEF EXECUTIVE MR. ROBINSON THEN REPLACED FAMOUS MUSIC'S PRESIDENT WITH IRA JAFFE THE PARAMOUNT PRESIDENT'S BROTHER WHO HAD WORKED WITH MR. ROBINSON IN THE PAST THE HIRES AT COMBINED ANNUAL SALARIES OF SIX HUNDRED TWENTY FIVE THOUSAND DOLLARS DON'T APPEAR TO HAVE PAID OFF PROFITS AT FAMOUS MUSIC WHICH OWNS MOON RIVER FLASHDANCE AND OTHER TUNES FROM PARAMOUNT MOVIES HAVE PLUNGED FIFTY PERCENT TO SEVENTY FIVE PERCENT FROM PROFIT LEVELS UNDER PREVIOUS MANAGEMENT SAY PEOPLE FAMILIAR WITH THE RESULTS PARAMOUNT CONCEDES THAT PROFITS ARE OFF BUT SAYS THE DROP IS LESS THAN FIFTY PERCENT MR. JAFFE VIGOROUSLY DEFENDS PARAMOUNT'S HIRING OF MR. ROBINSON WHO ONCE HEADED THORN E. M. I. P. L. C.'S MUSIC PUBLISHING COMPANY HE SAYS HE HAD NO ROLE IN HIS BROTHER'S HIRING AND ADDS THAT THE TWO MEN HAVE TRANSFORMED PARAMOUNT'S SMALL MUSIC PUBLISHING OPERATION EXPANDING IT INTO CONTEMPORARY MUSIC AND LESSENING ITS DEPENDENCE ON SOUNDTRACKS HE ALSO PASSIONATELY DEFENDS HIRING HIS SON I THINK HE COULD PRODUCE MOVIES TOMORROW MR. JAFFE SAYS ADDING IT'S NOT MY FAULT THAT I HAVE A TERRIFIC SON MR. JAFFE'S GRATING STYLE AND EXCESSES MIGHT HAVE BEEN OVERLOOKED HAD HE TURNED AROUND PARAMOUNT'S FORTUNES AND DURING HIS FIRST YEAR IT LOOKED AS IF HE WERE ON HIS WAY PROPELLED BY THE HITS WAYNE'S WORLD AND ADDAMS FAMILY AND BY JAFFE IMPOSED COST CUTS THE ENTERTAINMENT GROUP'S OPERATING PROFITS SOARED TO A NEAR RECORD TWO HUNDRED SEVENTY NINE POINT SIX MILLION DOLLARS FOR FISCAL NINETEEN NINETY TWO AT PARAMOUNT'S ANNUAL MEETING IN MARCH NINETEEN NINETY TWO MR. JAFFE SAID PARAMOUNT'S HOUSE HAD BEEN PUT BACK IN ORDER FOR YEARS TO COME IN ALL MY YEARS OF BEING ASSOCIATED WITH STUDIOS HE TOLD THE ASSEMBLED SHAREHOLDERS I'VE NEVER SEEN ONE SO RICH IN BIG COMMERCIAL TITLES AND COMMITMENTS HE ADDED QUOTE PARAMOUNT IS FINALLY POSITIONED FOR THE FUTURE QUOTE HIS OPTIMISM IT TURNS OUT WAS PREMATURE THE SUCCESS OF WAYNE'S WORLD AND ADDAMS FAMILY BOTH IN THE WORKS BEFORE MR. JAFFE ARRIVED MASKED ONGOING PROBLEMS HITS CONTINUED TO BE FAR OUTNUMBERED BY EXPENSIVE FLOPS INCLUDING THE ANIMATED FEATURES COOL WORLD AND BEBE'S KIDS AND THE CHRISTOPHER COLUMBUS DUD ONE THOUSAND FOUR HUNDRED NINETY TWO THE CONQUEST OF PARADISE FOR WHICH MR. JAFFE PERSONALLY GAVE THE GO AHEAD MR. JAFFE PLEDGED THAT THE STUDIO WOULD RELEASE AT LEAST TWENTY FIVE PICTURES A YEAR BUT IT HASN'T YET COME CLOSE THIS YEAR ONLY FIFTEEN FILMS ARE BOUND FOR THE BIG SCREEN THOUGH HE INDICATES ANOTHER FOURTEEN WILL START PRODUCTION BIG RIVALS RELEASE BETWEEN TWENTY FIVE AND FORTY A YEAR HOLLYWOOD EXECUTIVES LARGELY FAULT MR. JAFFE FOR THE SLUGGISHNESS INSTEAD OF FOCUSING ON LARGER ISSUES SUCH AS THE VOLUME AND MIX OF RELEASES SAY PARAMOUNT INSIDERS MR. JAFFE HAS TENDED TO TAKE A HANDS ON ROLE IN SPECIFIC PROJECTS OFTEN GETTING BOGGED DOWN IN MINUTIAE AND CONTRIBUTING TO DELAYS HE PERSONALLY HELPED EDIT SLIVER THE STEAMY SHARON STONE MOVIE THAT WAS A BIG DISAPPOINTMENT IN THE U. S. ALTHOUGH IT DID WELL OVERSEAS HE ALSO HAS BEEN CLOSELY INVOLVED WITH BEVERLY HILLS COP THREE WHICH WAS INITIALLY SCHEDULED TO COME OUT LAST YEAR BUT NOW WON'T APPEAR UNTIL SOMETIME THIS YEAR HIS APPROACH HAS MADE IT DIFFICULT FOR HIM TO HANG ON TO TALENTED MANAGERS IN THE ENTERTAINMENT DIVISION HIS MOST VISIBLE FALLING OUT WAS WITH BRANDON TARTIKOFF THE FORMER N. B. C. PROGRAMMING WHIZ WHOM HE RECRUITED HIMSELF IN NINETEEN NINETY ONE AND WHO LASTED JUST FIFTEEN MONTHS MR. TARTIKOFF SAID HE WAS LEAVING TO HELP WITH THE SLOW RECOVERY OF HIS YOUNG DAUGHTER WHO HAD BEEN HURT IN A CAR ACCIDENT BUT HE ALSO WAS FED UP WITH MR. JAFFE'S MEDDLING PEOPLE CLOSE TO MR. TARTIKOFF SAY THEY SAY MR. JAFFE SOMETIMES GAVE THE GO AHEAD TO PROJECTS WITHOUT CONSULTING MR. TARTIKOFF HE WOULD TAKE CHARGE OF CASTING DECISIONS NIXING ONE ACTOR CHOSEN FOR A ROLE IN FAVOR OF SOMEONE HE LIKED BETTER MR. JAFFE CONCEDES HE TOOK A HANDS ON ROLE AND CLASHED WITH MR. TARTIKOFF BUT HE PUTS THE BLAME FOR THE LOW FILM OUTPUT LARGELY ON MR. TARTIKOFF WHO HE SAYS DIDN'T GET ENOUGH FILM PROJECTS INTO THE PIPELINE FOR HIS PART MR. TARTIKOFF NOW AN INDEPENDENT PRODUCER SAYS THE DEVELOPMENT CUPBOARD WAS BARE WHEN HE ARRIVED HE SAYS HE STOCKED IT WITH PROJECTS THAT WILL CARRY THE STUDIO THROUGH THE NEXT SEVERAL YEARS QUOTE GETTING BLAMED FOR UNSUCCESSFUL FILMS SUCH AS ONE THOUSAND FOUR HUNDRED NINETY TWO THE FLOP MR. JAFFE APPROVED AND NOT GETTING CREDIT FOR SUCCESS SUCH AS INDECENT PROPOSAL AND THE FIRM WHICH I DID GREEN LIGHT SEEMS TO BE AN UNFORTUNATE FACET OF BEING A MOTION PICTURE CHAIRMAN EMERITUS QUOTE MR. TARTIKOFF SAYS MR. JAFFE ULTIMATELY INSTALLED HIS LONG TIME PRODUCING PARTNER MS. LANSING AT THE HELM OF THE MOVIE STUDIO SHE AND MR. JAFFE HAVE GIVEN THE GO AHEAD TO AMONG OTHER PROJECTS AN ALREADY OVER BUDGET BASKETBALL FLICK CALLED BLUE CHIP THEY ALSO CHOSE ITS DIRECTOR MS. LANSING'S HUSBAND WILLIAM FRIEDKIN WHO DIRECTED THE FRENCH CONNECTION BY EARLY LAST YEAR AT LEAST ONE PARAMOUNT BOARD MEMBER JAMES PATTISON A CANADIAN INDUSTRIALIST HAD SOURED ON MR. JAFFE ACCORDING TO PEOPLE CLOSE TO THE BOARD HE FELT THAT MR. JAFFE WASN'T UP TO THE JOB THAT HE WAS STUBBORN AND THAT HE MISTREATED EMPLOYEES REACHED AT HIS VANCOUVER OFFICE MR. PATTISON SAYS HE IS TOO CLOSE TO THE MATTER AND DOESN'T WANT TO TALK ABOUT IT ONE PERSON WHO HAS SPOKEN OUT PUBLICLY IS PRODUCER DAVID KIRKPATRICK HE HAS SUED PARAMOUNT IN LOS ANGELES SUPERIOR COURT CLAIMING THE STUDIO RENEGED ON A PRODUCTION AGREEMENT BECAUSE OF A PATTERN OF REVENGE ON THE PART OF MR. JAFFE ACCORDING TO THE SUIT IN NINETEEN NINETY MR. KIRKPATRICK WHO WAS THEN HEAD OF PRODUCTION AT PARAMOUNT HAD BEEN ORDERED BY HIS BOSSES TO SLICE THE BUDGET ON MR. JAFFE'S AND MS. LANSING'S SCHOOL TIES A FILM ABOUT A JEWISH STUDENT WHO CONFRONTS ANTI SEMITISM AT A NEW ENGLAND PREP SCHOOL THE CUTS INFURIATED MR. JAFFE THE SUIT ALLEGES AND WHEN HE LANDED HIS CURRENT JOB MR. KIRKPATRICK WAS FIRED MR. KIRKPATRICK WAS GIVEN A PRODUCTION AGREEMENT WITH PARAMOUNT BUT IN OCTOBER THE SUIT SAYS MS. LANSING TRIED TO END IT WHEN HE ASKED ABOUT A SETTLEMENT THE SUIT ALLEGES THE STUDIO EVICTED HIM FROM HIS OFFICE ON THE LOT AND THREW HIS FURNITURE ONTO A LAWN PARAMOUNT CALLS THE SUIT BASELESS AND WITHOUT MERIT ALTHOUGH MR. JAFFE HAS HAD A HEAVY HAND AT THE STUDIO HE HAS HAD FAR LESS TO DO WITH THE SIMON AND SCHUSTER PUBLISHING GROUP HOWEVER AUTHOR CHRISTOPHER BYRON SAYS A BOOK HE WROTE IN WHICH MR. JAFFE'S WIFE WAS MENTIONED WAS CHANGED THE NINETEEN NINETY TWO BOOK QUOTE SKINTIGHT QUOTE CHRONICLED THE BATTLE BETWEEN BLUEJEANS MAKERS GUESS AND JORDACHE MR. BYRON SAYS SIMON AND SCHUSTER ASKED HIM TO EXCISE MATERIAL ON ONE OF THE CENTRAL CHARACTERS MELINDA MARCIANO THE EX WIFE OF THE GUESS FOUNDER AND NOW THE WIFE OF STANLEY JAFFE WHEN HE BALKED MR. BYRON SAYS SIMON AND SCHUSTER SLASHED THE NUMBER OF PLANNED PRINTINGS AND CANCELED A PROMOTIONAL TOUR THE BOOK BOMBED A SIMON AND SCHUSTER SPOKESMAN SAYS THAT THERE WAS NO INTERFERENCE BY PARAMOUNT CORPORATE HEADQUARTERS AND THAT EDITORS ASKED FOR CHANGES BECAUSE THEY IDENTIFIED LIBEL ISSUES CONCERNING MS. MARCIANO HE SAYS THE BOOK RECEIVED THE NORMAL PROMOTIONAL AND PUBLICITY EFFORTS MR. JAFFE SAYS HE DIDN'T INTERFERE WITH THE BOOK AND HASN'T READ IT MORE THAN ALMOST ANYTHING ELSE PARAMOUNT INSIDERS SAY SPORTS SEEM TO DOMINATE MR. JAFFE'S ATTENTION ESPECIALLY PARAMOUNT'S MADISON SQUARE GARDEN UNIT WHICH OWNS THE MANHATTAN ARENA AS WELL AS THE KNICKS AND THE RANGERS WHEN WORKING AT THE STUDIO MR. JAFFE ROUTINELY HAS HAD HIS SECRETARY INTERRUPT MEETINGS TO HAND HIM HOCKEY SCORES SCRIBBLED ON PAPER EXECUTIVES RECALL MR. JAFFE A FORMER HIGH SCHOOL HOCKEY PLAYER GLEEFULLY DESCRIBING HOW HE BORROWED THE SKATES OF RANGERS STAR MARK MESSIER TO TAKE A TURN ON THE ICE MR. JAFFE MAKES FREQUENT USE OF THE GARDEN'S SUITE TWO HUNDRED A WOOD PANELED V. I. P. ROOM DECORATED WITH LEROY NEIMAN PAINTINGS FROM A COURTSIDE SEAT ALONGSIDE SUCH PALS AS ACTOR MICHAEL DOUGLAS MR. JAFFE OFTEN CAN BE SEEN WILDLY CHEERING FOR THE KNICKS AND TRADING HIGH FIVES WITH CENTER PATRICK EWING WHOM THE TEAM WITH MR. JAFFE'S APPROVAL RE SIGNED WITH A THIRTY THREE MILLION DOLLAR CONTRACT I GO TO GAMES BECAUSE I LOVE IT MR. JAFFE SAYS I HAVE BETTER SEATS TODAY MR. JAFFE DOESN'T LIMIT HIS INVOLVEMENT TO COURTSIDE THOUGH IN NINETEEN NINETY ONE HE MUSCLED OUT THE PRESIDENT OF THE GARDEN OPERATIONS AND QUICKLY INSTALLED HIMSELF ON THE NATIONAL HOCKEY LEAGUE'S BOARD OF GOVERNORS AS THE RANGERS' REPRESENTATIVE ONCE HE FLEW TO MONTREAL FOR A WEEK TO TRY UNSUCCESSFULLY TO WOO STAR ERIC LINDROSS TO THE RANGERS ONE GARDEN EXECUTIVE SAYS THAT MR. JAFFE TREATED THE SPORTS OPERATIONS MORE AS A TOY THAN AS A BUSINESS AND WANTED A CHAMPIONSHIP AT ANY COST MR. JAFFE SAYS THAT HE TREATS THE UNIT AS HE TREATS ANY BUSINESS AND DOESN'T SPEND AN INORDINATE AMOUNT OF TIME ON SPORTS HE ALSO NOTES THAT BOTH THE KNICKS AND THE RANGERS ARE CHAMPIONSHIP CALIBER TEAMS MR. JAFFE EVEN HAS SOME HOPES THAT THE TEAMS MAY BE HIS SALVATION AS THE MESSY FIGHT FOR PARAMOUNT NEARS ITS CONCLUSION A FEW MONTHS AGO AT A DINNER WITH MR. DAVIS AND VIACOM OFFICIALS HE BROACHED THE IDEA OF BUYING THE TEAMS IF THE VIACOM PARAMOUNT DEAL GOES THROUGH MR. JAFFE SAYS HE BROUGHT IT UP ONLY BECAUSE HE HAD BEEN APPROACHED ABOUT LEADING AN INVESTOR GROUP TO DO SO STILL HE ADMITS I WOULD WANT TO SEE IF IT'S POSSIBLE HE PAUSES FOR A MOMENT THEN ADDS QUOTE YES I WOULD BE INTERESTED IN IT AS A BUSINESS PROPOSITION THE TREASURY PLANS TO RAISE ONE POINT SIX BILLION DOLLARS IN NEW CASH WITH THE SALE THURSDAY OF ABOUT SIXTEEN POINT FIVE BILLION DOLLARS OF FIFTY TWO WEEK BILLS TO REDEEM FOURTEEN POINT NINE ONE BILLION DOLLARS IN MATURING BILLS THE CUSIP NUMBER FOR THE BILLS IS NINE ONE TWO SEVEN NINE FOUR Q. FORTY NINE THE BILLS AVAILABLE IN MINIMUM TEN THOUSAND DOLLAR DENOMINATIONS WILL BE DATED FEBRUARY TENTH AND WILL MATURE FEBRUARY NINTH NINETEEN NINETY FIVE NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EASTERN TIME ON THURSDAY AT THE TREASURY DEPARTMENT OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY ONE P. M. A. K. STEEL HOLDING CORPORATION A JOINT VENTURE BETWEEN KAWASAKI STEEL CORPORATION AND ARMCO INCORPORATED AN INITIAL OFFERING OF FIFTEEN MILLION SEVEN HUNDRED FIFTY THOUSAND COMMON SHARES AND TWO HUNDRED SEVENTY FIVE MILLION DOLLARS OF SENIOR NOTES WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL TWO MILLION THREE HUNDRED SIXTY THOUSAND SHARES VIA C. S. FIRST BOSTON BEAR STEARNS FINANCE L. L. C. A UNIT OF BEAR STEARNS COMPANIES A SHELF OFFERING FOR TWENTY MILLION SHARES OF GUARANTEED PREFERRED STOCK EXCHANGEABLE FOR DEPOSITORY SHARES EACH REPRESENTING A FRACTIONAL INTEREST IN A SHARE OF A SERIES OF PREFERRED STOCK OF BEAR STEARNS COMPANIES THE GUARANTER VIA BEAR STEARNS AND COMPANY HASKEL INTERNATIONAL INCORPORATED AN INITIAL OFFERING OF ONE MILLION CLASS A COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL ONE HUNDRED FIFTY THOUSAND SHARES VIA SEIDLER COMPANIES LEASING SOLUTIONS INCORPORATED AN OFFERING OF ONE POINT SEVEN MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION OF AN ADDITIONAL TWO HUNDRED FIFTY FIVE THOUSAND SHARES VIA NEEDHAM AND CO.AND HAMILTON INVESTMENTS INCORPORATED MULTI MARKET RADIO INCORPORATED AN OFFERING OF ONE MILLION UNITS WITH AN OVER ALLOTMENT OPTION OF ONE HUNDRED FIFTY THOUSAND UNITS EACH UNIT CONSISTING OF ONE CLASS A COMMON SHARE ONE REDEEMABLE CLASS A WARRANT WITH AN OPTION TO PURCHASE A CLASS A COMMON SHARE AND ONE REDEEMABLE CLASS B. WARRANT WITH AN OPTION TO PURCHASE AN ADDITIONAL CLASS A COMMON SHARE VASTAR RESOURCES INCORPORATED A SUBSIDIARY OF ATLANTIC RICHFIELD COMPANY AN INITIAL OFFERING OF UP TO SEVENTEEN MILLION TWO HUNDRED FIFTY THOUSAND COMMON SHARES INDIVIDUAL INVESTORS ARE BORROWING RECORD AMOUNTS OF CASH TO LOAD UP ON STOCKS AND THAT HAS SOME ANALYSTS WORRIED THE BULL MARKET IS GETTING A LITTLE TOO RACY AFTER NEARLY GOING OUT OF STYLE IN NINETEEN NINETY AND NINETEEN NINETY ONE THE PRACTICE OF BUYING STOCK QUOTE ON MARGIN QUOTE OR WITH BORROWED MONEY HAS BEEN PICKING UP AT U. S. BROKERAGE FIRMS INDEED ACCORDING TO THE NEW YORK STOCK EXCHANGE MARGIN LOANS AT U. S. BROKERAGE FIRMS HAVE BEEN ON A STEADY CLIMB RISING FROM FORTY FOUR BILLION DOLLARS AT THE START OF LAST YEAR TO A RECORD SIXTY POINT THREE BILLION DOLLARS IN DECEMBER LAST YEAR WAS KIND OF A RECORD YEAR FOR US IN TERMS OF BUILDING MARGIN BALANCES SAYS DONNA MORRIS SENIOR VICE PRESIDENT AT FIDELITY INVESTMENTS THE NATION'S LARGEST MUTUAL FUND COMPANY IT'S REALLY A REFLECTION OF LOW INTEREST RATES AND THE FACT THAT INVESTORS ARE TAKING ADVANTAGE OF THE LOW RATES TO BUY ADDITIONAL SECURITIES AND CONSOLIDATE DEBT SO FAR THE STEPPED UP USE OF MARGIN HAS BEEN HAVING A NOTICEABLY WELCOME EFFECT ON THE PERFORMANCE OF THE STOCK MARKET LAST YEAR THE DOW JONES INDUSTRIAL AVERAGE JUMPED THIRTEEN POINT SEVEN PERCENT AND ALREADY THIS YEAR THE INDEX OF THIRTY BLUE CHIP STOCKS IS UP FIVE POINT ONE PERCENT AFTER A RECORD SETTING RUN FRIDAY THAT TOOK THE INDUSTRIALS TO THREE THOUSAND NINE HUNDRED FORTY FIVE POINT FOUR THREE A GAIN ON THE DAY OF NINETEEN POINT ONE THREE POINTS WHILE SOME ANALYSTS SAY INCREASED MARGIN BUYING WILL CONTINUE TO BE A BULLISH OMEN FOR THE STOCK MARKET OTHERS AREN'T SO SURE THEY RECALL THAT IT WAS ONLY A MONTH AFTER MARGIN LENDING HIT A PEAK THAT STOCK PRICES SKIDDED IN OCTOBER NINETEEN EIGHTY SEVEN CULMINATING IN THE WORST ONE DAY DECLINE IN THE HISTORY OF THE STOCK MARKET AND THEY SAY GREATER RELIANCE ON MARGIN IS JUST ANOTHER SIGN THAT INVESTORS ARE WILLING TO TAKE ON MORE RISK WHEN IT COMES TO PLAYING IN THE STOCK MARKET EVENTUALLY THAT EXTRA RISK THEY FEAR WILL LEAD TO WILDLY OVERVALUED STOCK PRICES THE STEPPED UP USE OF MARGIN SUGGESTS THERE'S A LITTLE MORE SPECULATION IN THE MARKET SAYS LESLIE QUICK THREE PRESIDENT OF DISCOUNT BROKER QUICK AND REILLY GROUP INCORPORATED IT'S ANOTHER SIGN THAT THINGS ARE GETTING A LITTLE HEATED UP MR. QUICK WHOSE FIRM SAW A THIRTY THREE PERCENT RISE IN MARGIN LENDING LAST YEAR SAYS THAT WHAT IS SOMEWHAT REASSURING IS THAT MARGIN LENDING HAS BEEN GAINING SLOWLY THE FACT THAT IT IS NOT A SPIKE BUT A STEADY CLIMB IS COMFORTING HE SAYS QUOTE IT'S A SIGN THAT INVESTORS ARE NOT SUDDENLY GOING WILD QUOTE MARGIN LOANS ALLOW INVESTORS TO BORROW AMOUNTS OF AS MUCH AS FIFTY PERCENT OF THEIR STOCKHOLDINGS ALTHOUGH USUALLY USED TO BUY MORE STOCKS THERE ISN'T ANY RESTRICTION ON HOW THE LOAN CAN BE USED TYPICALLY MARGIN LOANS CARRY RATES THAT ARE LOWER THAN CONSUMERS CAN OBTAIN FROM MOST OTHER SOURCES FIDELITY'S MARGIN RATES FOR INSTANCE RANGE FROM FIVE POINT TWO FIVE PERCENT TO SEVEN POINT TWO FIVE PERCENT DEPENDING ON THE AMOUNT BORROWED CHARLES HUMM SENIOR VICE PRESIDENT AT MERRILL LYNCH CREDIT CORPORATION A SUBSIDIARY OF MERRILL LYNCH SAYS WHILE USING MARGIN TO FINANCE PURCHASES OTHER THAN STOCK IS GAINING MORE ACCEPTANCE THE MAJORITY OF MARGIN BORROWING STILL GOES TO FUND STOCK PURCHASES HOWEVER DESPITE THE SHARP RISE IN MARGIN DEBTS MR. HUMM ISN'T CONCERNED THAT INVESTORS ARE GETTING TOO SPECULATIVE I THINK THERE IS A MUCH MORE CONSERVATIVE APPROACH TO MARGIN TODAY HE SAYS HE NOTED THAT IN NINETEEN EIGHTY SEVEN THERE WAS MUCH MORE AGGRESSIVE USE OF MARGIN ACCOUNTS ON THE PART OF SOME THAN WE ARE SEEING TODAY OTHER BROKERAGE FIRMS SAY MARGIN BUYING BY THEIR CUSTOMERS WHILE GROWING IS STILL NOWHERE NEAR THE PROPORTION OF TOTAL ASSETS THAT WAS REACHED JUST PRIOR TO THE NINETEEN EIGHTY SEVEN CRASH AT CHARLES SCHWAB CORPORATION A BIG DISCOUNT BROKERAGE FIRM MARGIN DEBT TODAY REPRESENTS TWO POINT SEVEN PERCENT OF TOTAL EQUITY COMPARED WITH TWELVE POINT FIVE PERCENT IN AUGUST NINETEEN EIGHTY SEVEN MARGIN BUYING IS UP A LOT BUT ASSETS HERE AT SCHWAB ARE ALSO UP A LOT SAYS A SPOKESMAN SOME ANALYSTS LIKE LASZLO BIRINYI WHO HEADS A CONSULTING FIRM THAT BEARS HIS NAME SAY THEY WOULD ONLY GET ANXIOUS IF IT APPEARS THAT INVESTORS ARE USING MARGIN MONEY AS FUNDS OF LAST RESORT QUOTE IF INDIVIDUALS HAVE MONEY AVAILABLE BUT SAY HECK WITH IT AT FIVE PERCENT I'LL USE MERRILL'S MONEY THAT DOESN'T BOTHER ME QUOTE SAYS MR. BIRINYI SO FAR HE SAYS THERE'S AMPLE EVIDENCE TO SHOW THAT INVESTORS ARE CASH HEAVY HE NOTES THAT FROM MID NINETEEN NINETY TWO TO MID NINETEEN NINETY THREE INDIVIDUAL ASSETS IN CHECKING ACCOUNTS WERE UP TWENTY TWO PERCENT WHILE FUNDS IN CERTIFICATES OF DEPOSITS WERE ONLY OFF SLIGHTLY SUGGESTING THAT INVESTORS AREN'T FORSAKING THE SAFETY OF THEIR BANKS FOR STOCKS INDEED MR. BIRINYI SUGGESTS THAT INVESTORS MAY BE TURNING INCREASINGLY TO MARGIN BORROWING BECAUSE IT AMOUNTS TO A CHEAP AND EASY LOAN HISTORICALLY A COMBINATION OF LOW RATES AND A RISING STOCK MARKET HAS SPURRED INVESTORS TO INCREASE THEIR MARGIN BUYING BUT UNTIL LAST YEAR INVESTORS WERE TAKING A CAUTIOUS APPROACH TO MARGIN BUYING PARTLY BECAUSE MANY STILL HAD VIVID MEMORIES OF BEING BURNED BY MARGIN CALLS IN THE WAKE OF THE OCTOBER NINETEEN EIGHTY SEVEN CRASH A MARGIN CALL OCCURS WHEN BROKERAGE FIRMS DEMAND THAT INVESTORS WITH MARGIN LOANS PUT UP MORE CASH TO MAKE UP FOR THE DECLINE IN THE VALUE OF THEIR STOCK PORTFOLIOS WHICH SERVE AS THE LOAN'S COLLATERAL AS LONG AS STOCK PRICES ARE RISING MARGIN CALLS GENERALLY AREN'T A PROBLEM BUT THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER WORRIES ABOUT THE EFFECT MARGIN LENDING WILL HAVE WHEN THE MARKET TURNS SOUTH AS LONG AS STOCK PRICES KEEP RISING MARGIN BUYING IS A VERY BULLISH SIGN BECAUSE IT MEANS THAT MORE MONEY IS FLOWING INTO STOCKS SAYS MR. GALLAGHER BUT ONCE THE MARKET STARTS GOING DOWN IT SPEEDS UP THE DECLINE AS ILLIQUID INVESTORS DELUGED WITH MARGIN CALLS START DUMPING STOCK MEANWHILE MR. QUICK SAID HE WILL BECOME NERVOUS IF MARGIN LENDING SUDDENLY SPURTS HIGHER OR IF IT IS ACCOMPANIED BY THE GREATER USE OF OTHER SPECULATIVE STRATEGIES IF WE SAW A SPIKE UP IN MARGIN DEBITS I WOULD BE VERY CONCERNED AND I THINK THE BEARS ON WALL STREET WOULD HAVE A FIELD DAY HE SAYS STOCKS HIT HIGHS YET AGAIN AFTER A SURPRISINGLY UPBEAT REPORT ON THE ECONOMY THE DOW JONES INDUSTRIALS SHOT UP NINETEEN POINT ONE THREE POINTS TO THREE THOUSAND NINE HUNDRED FORTY FIVE POINT FOUR THREE ITS SECOND STRAIGHT RECORD STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX SURGED ONE POINT SIX FIVE POINTS TO FOUR HUNDRED SEVENTY EIGHT POINT SEVEN OH ALSO A HIGH AND THE NASDAQ COMPOSITE INDEX ROCKETED THREE POINT SIX FIVE TO SEVEN HUNDRED NINETY SIX POINT FIVE THREE A RECORD ADVANCING ISSUES OUTNUMBERED DECLINING ISSUES ONE THOUSAND THREE HUNDRED TWENTY FOUR TO SEVEN HUNDRED SEVENTY VOLUME ON THE NEW YORK STOCK EXCHANGE FELL TO THREE HUNDRED TWELVE MILLION SIX HUNDRED THIRTY SIX THOUSAND ONE HUNDRED FIFTY SHARES FROM THREE HUNDRED FORTY SIX MILLION TWO HUNDRED NINETY TWO THOUSAND ONE HUNDRED SIXTY SHARES THURSDAY FOR THE WEEK THE DOW JONES INDUSTRIALS AND S. AND P. EACH ROSE ZERO POINT EIGHT PERCENT AND THE NASDAQ COMPOSITE GAINED ZERO POINT THREE PERCENT STOCKS RALLIED FRIDAY AFTER THE COMMERCE DEPARTMENT REPORTED THAT GROSS DOMESTIC PRODUCT ROSE FIVE POINT NINE PERCENT IN THE FOURTH QUARTER WELL ABOVE THE FIVE POINT TWO PERCENT MANY HAD EXPECTED AND THE STRONGEST SINCE THE NINETEEN EIGHTY SEVEN FOURTH QUARTER DESPITE THAT ECONOMIC STRENGTH INFLATION GAUGES IN THE REPORT OFFERED LOWER THAN EXPECTED READINGS ECONOMISTS SAID DAIMLER BENZ A. G. WAS THE MOST ACTIVE STOCK ON THE BIG BOARD ADDING ONE QUARTER TO FORTY SEVEN AN OFFERING OF FIFTEEN MILLION AMERICAN DEPOSITARY SHARES OF DAIMLER BENZ WAS PRICED AT FORTY SIX DOLLARS AND SEVENTY FIVE CENTS EACH THURSDAY THE SHARES WERE SOLD BY DEUTSCHE BANK CONTINENTAL BANK SURGED SIX AND ONE EIGHTH TO THIRTY FOUR AFTER IT AGREED TO BE ACQUIRED BY BANKAMERICA IN A TRANSACTION VALUED AT ONE POINT NINE BILLION DOLLARS BANKAMERICA EASED THREE EIGHTHS TO FORTY FIVE AND THREE EIGHTHS SHARES OF OTHER BANKS AND BROKERAGE FIRMS ALSO RALLIED CITICORP JUMPED ONE AND ONE QUARTER TO FORTY THREE AND ONE EIGHTH MERRILL LYNCH THREE QUARTERS TO FORTY THREE AND ONE EIGHTH MORGAN STANLEY ONE AND THREE QUARTERS TO SEVENTY SEVEN AND WELLS FARGO THREE AND SEVEN EIGHTHS TO ONE HUNDRED THIRTY EIGHT AND SEVEN EIGHTHS SCIENTIFIC ATLANTA TUMBLED THREE AND SEVEN EIGHTHS TO TWENTY SEVEN AND SEVEN EIGHTHS THE COMPANY REPORTED A SECOND QUARTER LOSS OF TWELVE CENTS A SHARE COMPARED WITH PROFIT OF FOUR CENTS A SHARE A YEAR AGO THE LATEST QUARTER'S RESULTS WERE DEPRESSED BY A CHARGE OF THIRTY ONE CENTS A SHARE FOR A LEGAL SETTLEMENT AETNA LIFE AND CASUALTY ADVANCED ONE AND THREE QUARTERS TO FIFTY NINE AND SEVEN EIGHTHS THE COMPANY SAID IT PLANS TO CUT FOUR THOUSAND JOBS AND TAKE A CHARGE TO NINETEEN NINETY THREE EARNINGS OF ONE POINT OH THREE BILLION DOLLARS MINERALS TECHNOLOGIES SURGED ONE AND ONE HALF TO TWENTY SEVEN AND ONE HALF THE COMPANY EARNED THIRTY FIVE CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH TWENTY TWO CENTS A SHARE A YEAR AGO AND ABOVE ANALYSTS' MEAN ESTIMATE OF THIRTY TWO CENTS G. P. FINANCIAL PARENT OF GREEN POINT SAVINGS BANK CLOSED UNCHANGED AT NINETEEN ON NASDAQ VOLUME OF TWENTY FIVE POINT ONE MILLION SHARES A FEDERAL APPEALS COURT CLEARED THE WAY FOR THE COMPANY'S EIGHT HUNDRED MILLION DOLLARS CONVERSION FROM MUTUAL TO STOCK OWNERSHIP AND THE STOCK BEGAN TRADING SHORTLY AFTER THE RULING THE CONVERSION WAS PRICED AT FIFTEEN DOLLARS A SHARE TELEDYNE SHED TWO AND ONE EIGHTH TO TWENTY THREE AND FIVE EIGHTHS THE WALL STREET JOURNAL REPORTED THE COMPANY SUSPENDED ITS CASH DIVIDEND FOR THE FIRST TIME EVER AMID GROWING SIGNS THE AIRCRAFT COMPANY REACHED A TENTATIVE SETTLEMENT WITH THE GOVERNMENT TOTALING WELL OVER ONE HUNDRED MILLION DOLLARS DAVE PETTIT CONTRIBUTED TO THIS ARTICLE TOP OFFICIALS OF SPECTRUM INFORMATION TECHNOLOGIES INCORPORATED THE LITTLE WIRELESS COMPANY UNDER A SECURITIES AND EXCHANGE COMMISSION PROBE SOLD MOST OF THEIR STOCK SHORTLY AFTER HIRING HIGH PROFILE COMPUTER EXECUTIVE JOHN SCULLEY AS CHAIRMAN MR. SCULLEY WHO TOOK APPLE COMPUTER INCORPORATED TO EIGHT BILLION DOLLARS IN REVENUE IN A FEW SHORT YEARS WAS HIRED BY SPECTRUM TO PROMOTE ITS TECHNOLOGY FOR SENDING DATA OVER WIRELESS NETWORKS AT THE TIME SPECTRUM OFFICIALS BOASTED ABOUT HOW THE COMPANY WOULD EXPLOIT ITS PATENTS THROUGH LICENSING DEALS SUCH AS THOSE IT HAD NEGOTIATED WITH AMERICAN TELEPHONE AND TELEGRAPH COMPANY AND ROCKWELL INTERNATIONAL CORPORATION INDEED MR. SCULLEY'S TRUMPETED HIRING IN MID OCTOBER GAVE TOP INSIDERS AT THE NASDAQ LISTED COMPANY MUCH TO CHEER ABOUT SPECTRUM WHICH IS BASED IN MANHASSET N. Y. HAS NEVER REPORTED AN ANNUAL PROFIT BUT SPECTRUM'S SHARE PRICE SHOT UP FORTY SIX PERCENT TO ELEVEN AND ONE EIGHTH FROM SEVEN AND FIVE EIGHTHS ON OCTOBER EIGHTEENTH ON NEWS OF MR. SCULLEY'S APPOINTMENT MR. SCULLEY HIMSELF VOICED CONFIDENCE IN SPECTRUM'S FUTURE AND BACKED HIS OPTIMISM BY HOLDING ON TO OPTIONS THAT COULD HAVE MADE HIM MILLIONS OF DOLLARS WHEN HE AGREED TO JOIN SPECTRUM HE WAS GIVEN A MILLION DOLLAR SALARY AND OPTIONS TO BUY EIGHTEEN MILLION SHARES OVER FIVE YEARS AT THE EXERCISE PRICE OF SIX POINT ONE TWO FIVE DOLLARS THREE MILLION OF THOSE OPTIONS BECAME EXERCISABLE AFTER THE FIRST WEEK IN OCTOBER THE WEEK BEFORE MR. SCULLEY'S APPOINTMENT WAS ANNOUNCED THAT WOULD HAVE BROUGHT HIM A PROFIT OF AS MUCH AS FIFTEEN MILLION DOLLARS BASED ON THE HIGH POINT OF SPECTRUM'S STOCK ELEVEN POINT ONE TWO FIVE DOLLARS ON THE DAY OF THE ANNOUNCEMENT SPECTRUM INSIDERS DIDN'T WAIT HOWEVER A TRIO OF EXECUTIVES INCLUDING PRESIDENT PETER CASERTA WHO CONVINCED MR. SCULLEY TO JOIN SPECTRUM EXERCISED OPTIONS AND SOLD THOSE SHARES FOR MILLIONS OF DOLLARS IN NOVEMBER AND EARLY DECEMBER THE OPTIONS WHICH BECAME EXERCISABLE IN LATE AUGUST WOULD HAVE EXPIRED IN TWO THOUSAND TWO CHIEF FINANCIAL OFFICER SALVATORE MARINO AND VICE PRESIDENT ALBERT PANICO ALSO CASHED IN NONE OF THESE OFFICERS HELD OR CURRENTLY HOLD DIRECT SHARES IN THEIR COMPANY BASED ON S. E. C. FILINGS SPECTRUM OFFICIALS WERE UNAVAILABLE FOR COMMENT FRIDAY ACCORDING TO AN OUTSIDE PUBLIC RELATIONS FIRM SOME OF THE INSIDERS' SALES WERE REPORTED BY THE NEW YORK POST LAST WEEK AFTER THE INSIDERS EXERCISED THEIR OPTIONS SPECTRUM SHARES SLID TO AROUND EIGHT DOLLARS THE STOCK TOOK A FURTHER BATTERING EARLY LAST WEEK AFTER C. N. B. C. COMMENTATOR DAN DORFMAN SPECULATED AND THE WALL STREET JOURNAL CONFIRMED THAT SPECTRUM HAS BEEN UNDER AN S. E. C. INVESTIGATION SINCE MAY THE STOCK'S LATEST SLIDE HAS ALL BUT WIPED OUT FOR NOW THE SHORT TERM VALUE OF THE HUGE OPTIONS PACKAGE THAT MR. SCULLEY RECEIVED TO JOIN SPECTRUM IN THE FIRST PLACE SPECTRUM SHARES CLOSED FRIDAY AT SIX AND FIVE SIXTEENTHS UP ONE SIXTEENTH IN NASDAQ STOCK MARKET TRADING MR. CASERTA HOWEVER PROFITED HANDSOMELY QUOTE THE ENTRANCE OF JOHN SCULLEY PROVIDED THE FUEL TO PROPEL THE STOCK WHICH HAD SPENT MOST OF ITS EXISTENCE TRADING BELOW THREE AND ONE HALF TO THE TEN RANGE LATE LAST YEAR QUOTE SAYS BOB GABELE PRESIDENT OF C. D. A. SLASH INVESTNET A FORT LAUDERDALE FLORIDA COMPANY THAT TRACKS INSIDER ACTIVITY THE STOCK'S MOVE PROVIDED THESE INSIDERS WITH A TIMELY OPPORTUNITY TO SELL JUST HOW FAST THEY WERE TO SEIZE IT CAUGHT OUR ATTENTION MR. CASERTA SOLD JUST UNDER HALF OF HIS STAKE EXERCISING OPTIONS TO ACQUIRE ONE MILLION SHARES AT ONE DOLLAR AND THIRTEEN CENTS APIECE AND THEN SELLING THOSE SHARES IN THE OPEN MARKET AT AN AVERAGE NINE DOLLARS AND FIFTY CENTS APIECE BETWEEN NOVEMBER FIFTEENTH AND NOVEMBER TWENTY THIRD FOR A PRETAX PROFIT OF EIGHT POINT FOUR MILLION DOLLARS MR. CASERTA ACCORDING TO THE S. E. C. DATA STILL HOLDS OPTIONS TO ACQUIRE ONE MILLION SHARES AT ONE DOLLAR AND THIRTEEN CENTS APIECE AS WELL AS OPTIONS TO BUY FIVE THOUSAND SHARES AT TWO DOLLARS AND NINETY ONE CENTS EACH MR. PANICO A DIRECTOR AND VICE PRESIDENT OF OPERATIONS DUMPED MORE THAN HALF OF HIS HOLDINGS BETWEEN NOVEMBER TWENTY SECOND AND NOVEMBER TWENTY FOURTH HE EXERCISED THREE HUNDRED THIRTY THREE THOUSAND OPTIONS PRICED AT ONE DOLLAR AND THIRTEEN CENTS A SHARE AND THEN SOLD THOSE SHARES AT AN AVERAGE EIGHT DOLLARS AND FIFTY FIVE CENTS FOR A PRETAX PROFIT OF TWO POINT FIVE MILLION DOLLARS S. E. C. FILINGS SHOW HIM STILL HOLDING OPTIONS TO ACQUIRE THREE HUNDRED TWENTY THOUSAND SHARES PRICED AT ONE DOLLAR AND THIRTEEN CENTS AS WELL AS OPTIONS TO ACQUIRE FIVE THOUSAND SHARES AT THREE DOLLARS AND SEVENTY FIVE CENTS A SHARE AND MR. MARINO THE CHIEF FINANCIAL OFFICER CHOPPED HIS HOLDINGS SIXTY THREE PERCENT EXERCISING THREE HUNDRED THOUSAND OPTIONS AT ONE DOLLAR AND THIRTEEN CENTS A SHARE AND SELLING THOSE SHARES AT AN AVERAGE EIGHT DOLLARS AND SEVENTY ONE CENTS A SHARE BETWEEN NOVEMBER TWENTY FOURTH AND DECEMBER FIRST FOR A PRETAX PROFIT OF TWO POINT THREE MILLION DOLLARS FILINGS SHOW HIM STILL HOLDING OPTIONS TO ACQUIRE ONE HUNDRED SEVENTY FIVE THOUSAND SHARES AT ONE DOLLAR AND THIRTEEN CENTS BY SELLING THEIR STOCK THE SPECTRUM EXECUTIVES SAVED THEMSELVES FROM A BIG DROP IN SPECTRUM'S STOCK PRICE WHICH OCCURRED AFTER THE S. E. C. PROBE BECAME KNOWN THE INVESTIGATION CENTERS ON THE WILD RIDE TAKEN BY SPECTRUM'S STOCK LAST SPRING THE SHARES SKYROCKETED TO MORE THAN THIRTEEN DOLLARS IN INTRADAY TRADING AFTER THE COMPANY TOUTED A PATENT LICENSING DEAL WITH A. T. AND T. AND MR. CASERTA SPECTRUM'S PRESIDENT CROWED THAT THE DEAL WOULD BE WORTH HUNDREDS OF MILLIONS OF DOLLARS IN NEW BUSINESS THE STOCK LATER PLUNGED WHEN A. T. AND T. DISAVOWED THE PROJECTION INSIDERS UNDER S. E. C. REGULATIONS ARE PREVENTED FROM TRADING THEIR STOCK IF IN POSSESSION OF MATERIAL NONPUBLIC INFORMATION THE GUIDING PRINCIPLE IS TO DISCLOSE THE INFORMATION TO THE BROAD PUBLIC OR ABSTAIN FROM BUYING OR SELLING COMPANY SHARES ACCORDING TO LEGAL EXPERTS SPECTRUM GENERAL COUNSEL CHRISTOPHER FRANCO LAST WEEK CALLED THE PROBE A CONFIDENTIAL NONPUBLIC INQUIRY AND MAINTAINED THAT IT DIDN'T HAVE TO BE DISCLOSED S. E. C. OFFICIALS DECLINED TO COMMENT SMALL CAP STOCKS ENDED AT RECORD HIGHS FRIDAY AS THE RUSSELL TWO THOUSAND INDEX ROSE ONE POINT THREE SEVEN OR ZERO POINT FIVE TWO PERCENT TO TWO HUNDRED SIXTY FIVE POINT OH THREE ITS SESSION HIGH THE INDEX WHICH TRACKS THE PERFORMANCE OF SMALL CAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES EASILY SURPASSED ITS RECORD OF TWO HUNDRED SIXTY THREE POINT EIGHT OH SET A WEEK EARLIER INTEREST RATE SENSITIVE ISSUES WHICH HAD POWERED THE ADVANCE IN THE PREVIOUS TWO SESSIONS FOLLOWED BOND PRICES HIGHER SOME TECHNOLOGY STOCKS ALSO WERE STRONG G. P. FINANCIAL CORPORATION NEW YORK CLOSED UNCHANGED AT NINETEEN AFTER A FEDERAL APPEALS COURT FRIDAY CLEARED THE WAY FOR THE COMPANY'S GREEN POINT SAVINGS BANK SUBSIDIARY TO CONVERT FROM MUTUAL TO STOCK OWMNERSHIP COMMUNITY FIRST BANKSHARES INCORPORATED FARGO N. D. ROSE ONE HALF TO FOURTEEN FFBS BANCORP INCORPORATED COLUMBUS MISSISSIPPI ADDED ONE HALF TO SIXTEEN AND THREE QUARTERS AND PEOPLES BANCORP OF WORCESTER INCORPORATED WORCESTER MASSACHUSETTS INCHED UP ONE QUARTER TO FORTY NINE BANCFIRST CORPORATION ROSE SIX AND THREE EIGHTHS TO TWENTY FOUR AND THREE EIGHTHS ON THE AMERICAN STOCK EXCHANGE THE DECATUR ALABAMA COMPANY SAID IT ENTERED A DEFINITIVE AGREEMENT TO BE MERGED INTO UNION PLANTERS CORPORATION IN A STOCK SWAP GENERAL ELECTRIC COMPANY'S FINANCE ARM AND INTERNATIONAL FINANCIER GEORGE SOROS ARE JOINTLY FORMING A MULTIBILLION DOLLAR FUND TO DEVELOP POWER PLANTS IN EMERGING NATIONS HOPING TO PROFIT FROM THE GROWING DEMAND FOR MODERN POWER FACILITIES AROUND THE WORLD G. E. CAPITAL CORPORATION AND A NEW UNIT SET UP BY MR. SOROS'S QUANTUM GROUP ARE EACH INVESTING TWO HUNDRED MILLION DOLLARS IN EQUITY AND EXPECT TO RAISE ANOTHER TWO BILLION DOLLARS TO FINANCE AND BUILD PRIVATELY OWNED POWER FACILITIES IN EMERGING NATIONS SUCH AS CHINA INDIA INDONESIA AND MEXICO INTERNATIONAL FINANCE CORPORATION A UNIT OF THE WORLD BANK HAS SIGNED A LETTER OF INTENT TO INVEST FIFTY MILLION DOLLARS AND G. E. EXECUTIVES SAY THE REST WILL COME FROM INTERNATIONAL INVESTORS AND COMPANIES INVOLVED IN THE ENERGY MARKET WHILE AGENCIES SUCH AS THE WORLD BANK HAVE FINANCED THE DEVELOPMENT OF POWER PROJECTS THE FUND CALLED GLOBAL POWER INVESTMENTS COULD BECOME THE LARGEST PRIVATE SOURCE OF CAPITAL FOR THE FAST GROWING WORLD WIDE ENERGY MARKET UNLIKE MOST EQUITY FUNDS THAT TAKE DIRECT EQUITY STAKES IN COMPANIES THIS FUND WILL FINANCE AND BUILD PROJECTS FROM SCRATCH A SPOKESMAN FOR QUANTUM GROUP AN OFFSHORE INVESTMENT VEHICLE SAID THAT THERE ARE ATTRACTIVE RETURNS IN QUOTE DIRECT EQUITY INVESTMENTS WITH A LONGER TERM INVESTMENT HORIZON QUOTE GLOBAL POWER COULD ULTIMATELY BE TEN BILLION DOLLARS OR BIGGER IN SIZE AFTER USING THE EQUITY TO BORROW FUNDS FOR CONSTRUCTION PROJECTS WHILE THE FUND WOULD OWN THE PROJECTS IN MANY CASES IT WILL ALSO CO OWN PLANTS WITH GOVERNMENTS OR GOVERNMENT OWNED UTILITIES THERE'S A TREMENDOUS NEED FOR POWER INFRASTRUCTURE SAID GARY WENDT PRESIDENT AND CHIEF EXECUTIVE OF G. E. CAPITAL GLOBAL POWER WOULD INVEST IN PROJECTS IN CHINA INDIA AND MEXICO IN WHICH G. E. CAPITAL HAS ALREADY BEGUN DISCUSSIONS THE STAMFORD CONNECTICUT FINANCING GIANT HAS SIGNED A MANAGEMENT CONTRACT WITH THE FUND TO ORIGINATE AND MANAGE THE FACILITIES WHILE THE FUND WILL MAKE THE INVESTMENT DECISIONS GLOBAL POWER WILL ALSO BE BASED IN STAMFORD G. E. CAPITAL HAS FOUR POINT FIVE BILLION DOLLARS OF POWER PROJECTS IN THE U. S. AND WANTS TO PARLAY ITS EXPERIENCE WITH ITS PARENT'S STRENGTH IN BUILDING POWER GENERATORS MR. WENDT SAID WE EXPECT TO BE WORKING VERY CLOSELY WITH G. E. TO SOURCE AND DEVELOP PROJECTS NOW WE'RE GOING ABROAD HE SAID OF G. E. CAPITAL AMID A MATURE MARKET IN THE U. S. DEMAND FOR ELECTRICITY IS GROWING FASTER IN EAST ASIA THAN ANYWHERE ELSE IN THE WORLD CHINA SPENDS ABOUT TEN BILLION DOLLARS TO FOURTEEN BILLION DOLLARS A YEAR ON ELECTRIC POWER PROJECTS AND CAPACITY IS FORECAST TO NEARLY DOUBLE BY THE TURN OF THE CENTURY ANALYSTS SAY COAL RELATED PROGRAMS ARE IMPORTANT IN THE EAST ASIAN REGION BECAUSE OF THE HUGE RESERVES THERE CHINA USES ABOUT ONE POINT ONE BILLION TONS OF COAL ANNUALLY MORE THAN ANY OTHER NATION AND FORTY PERCENT OF ITS NEW ENERGY SPENDING IS EXPECTED TO GO INTO COAL FIRED POWER GLOBALLY THERE IS AN ENORMOUS LATENT DEMAND FOR INCREASED POWER PRODUCTION AND THE FUEL OF CHOICE IS EXPECTED TO BE COAL SAID WILLIAM OWENS CHAIRMAN AND CHIEF EXECUTIVE OF S. G. I. INTERNATIONAL A LA JOLLA CALIFORNIA COMPANY THAT CLEANS COAL FOR COMMERCIAL USE THE FUND WILL BUILD VARIOUS TYPES OF POWER FACILITIES INCLUDING GAS OIL COAL AND HYDROELECTRIC PLANTS A TYPICAL TWO HUNDRED MEGAWATT PROJECT COULD COST UPWARD OF TWO HUNDRED MILLION DOLLARS LOCAL ASIAN COMPANIES HAVE ALREADY SEIZED ON THE OPPORTUNITY ONE COMPETITOR OF THE NEW FUND WILL BE HOPEWELL HOLDINGS A HONG KONG INFRASTRUCTURE COMPANY THAT HAS A BIG PRESENCE IN CHINA THE COMPANY IS SETTING UP A SEPARATE COMPANY TO BUILD POWER STATIONS IN CHINA THE PHILIPPINES AND ELSEWHERE IN ASIA AS HOPEWELL SHOWED THE BUSINESS CAN BE QUITE LUCRATIVE IN NINETEEN EIGHTY SEVEN HOPEWELL COMPLETED THE SEVEN HUNDRED MEGAWATT SHAJIAO B. POWER STATION ON CHINA'S PEARL RIVER THE OWNERSHIP WILL ULTIMATELY BE TRANSFERRED TO CHINA BUT THE BUILD OPERATE TRANSFER AGREEMENT GIVES THE COMPANY A RETURN OF ABOUT EIGHTEEN PERCENT ON ITS INVESTMENT THE TWO HUNDRED MILLION DOLLARS FROM MR. SOROS WILL COME FROM A NEW FUND SET UP BY QUANTUM TO MAKE LONGER TERM EQUITY INVESTMENTS INVESTORS IN FOUR OF MR. SOROS'S EXISTING FUNDS WILL BE GIVEN THE OPPORTUNITY TO INVEST IN THE NEW FUND CALLED QUANTUM INDUSTRIAL HOLDINGS THE SPOKESMAN SAID MR. SOROS'S FUNDS HAVE BEGUN TO MAKE OTHER INVESTMENTS IN DEVELOPING COUNTRIES INCLUDING A REAL ESTATE VENTURE IN MEXICO WHILE MR. SOROS IS A MAJOR CONTRIBUTOR TO CHARITABLE ORGANIZATIONS IN EMERGING COUNTRIES IN EASTERN EUROPE QUOTE WE AND MR. SOROS ARE IN THIS ACTIVITY TO MAKE PROFITS QUOTE SAID MR. WENDT AMERICA'S GOVERNORS ARE NOW IN WASHINGTON ATTENDING THEIR ANNUAL MEETING IF HISTORY IS ANY GUIDE THEY WILL BE SEEKING MORE FEDERAL DOLLARS TO HELP BALANCE THEIR BUDGETS WHILE BLAMING THEIR FISCAL CRISES ON UNCLE SAM WHILE SOME OF THE BLAME RESTS WITH CONGRESS'S MANDATES THE TRUTH IS THAT STATES HAVE FACED FOUR CONSECUTIVE YEARS OF IMBALANCED BUDGETS PRIMARILY BECAUSE OF THEIR OWN SPENDING AND TAX POLICIES IN THE NINETEEN EIGHTIES STATE BUDGETS MORE THAN DOUBLED SETTING THE STAGE FOR AN ERA OF FISCAL DETERIORATION IN THE NINETEEN NINETIES MOST GOVERNORS TRIED TO CLOSE THOSE DEFICITS BY RAISING TAXES STATE LAWMAKERS HAVE JUSTIFIED THESE TAX HIKES BY INSISTING THAT NEW REVENUES WERE COUPLED WITH DEEP SPENDING CUTS NOTHING COULD BE FURTHER FROM THE TRUTH NATIONWIDE STATE SPENDING GREW BY TEN PERCENT IN NINETEEN NINETY ONE AND AN ENORMOUS TWELVE PERCENT IN NINETEEN NINETY TWO NOT COINCIDENTALLY THE GOVERNORS WHO RAMMED THROUGH LARGE TAX INCREASES IN THE EARLY NINETEEN NINETIES HAVE ALSO APPROVED THE FASTEST GROWTH IN GOVERNMENT EXPENDITURES FORTUNATELY NOT ALL GOVERNORS HAVE PURSUED THE TAX HIKE ROUTE THE ACCOMPANYING TABLE SHOWS THE RESULTS OF A JUST RELEASED FISCAL POLICY REPORT CARD PREPARED BY MY COLLEAGUE DEAN STANSEL AND MYSELF IT RELIES ON FOURTEEN INDICATORS OF FISCAL PERFORMANCE AS MEASURED BY THE CENSUS BUREAU AND THE NONPARTISAN NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS THESE INCLUDE SUCH VARIABLES AS PER CAPITA SPENDING AND THE CHANGE IN TAX REVENUES AND RATES THE DIFFERENT STRATEGIES ADOPTED BY GOVERNORS IN THE EARLY NINETEEN NINETIES HAVE TRANSLATED INTO DRAMATIC CHANGES IN STATE TAX BURDENS AND SPENDING HERE IS A SUMMARY OF THE PERFORMANCE OF SOME PROMINENT GOVERNORS PETE WILSON OF CALIFORNIA RAMMED THROUGH THE LEGISLATURE A GIGANTIC SEVEN BILLION DOLLAR TAX INCREASE IN NINETEEN NINETY ONE THE LARGEST STATE TAX HIKE IN AMERICAN HISTORY IN THREE YEARS MR. WILSON HAS RAISED VIRTUALLY EVERY STATE TAX IMAGINABLE THE INCOME TAX THE SALES TAX THE GASOLINE TAX THE CIGARETTE TAX AND A HOST OF OTHER FEES THE TAX INCREASES HAVE SO DEVASTATED THE ECONOMY THAT ONLY A FRACTION OF THE PROJECTED REVENUES HAVE BEEN DELIVERED AND THUS BIG BUDGET DEFICITS REMAIN MARIO CUOMO HAS GOVERNED AS IF HE NEVER MET A SPENDING PROGRAM HE DIDN'T LIKE IN TEN YEARS MR. CUOMO TOOK THE NEW YORK BUDGET FROM LESS THAN FIFTY BILLION DOLLARS TO SEVENTY FIVE BILLION DOLLARS NEW YORK SPENDS SIX THOUSAND DOLLARS MORE PER FAMILY TODAY THAN IT DID WHEN MR. CUOMO WAS FIRST INAUGURATED IN NINETEEN EIGHTY THREE NEW YORK IS NOW SADDLED WITH WHAT THE NEW YORK TIMES CALLS QUOTE A ROTTEN CREDIT RATING THE WORST AMONG THE FIFTY STATES QUOTE BUT MR. CUOMO'S TAX POLICIES HAVE BEEN SUPPLY SIDE HE CHOPPED THE TOP TAX RATE IN THE STATE TO EIGHT PERCENT FROM FOURTEEN PERCENT A POLICY THAT HELPED TO PRODUCE A REVENUE WINDFALL UNFORTUNATELY MR. CUOMO EAGERLY SPENT IT ANN RICHARDS BOASTS OF BEING A FISCALLY MODERATE DEMOCRAT BUT THE EVIDENCE SUGGESTS OTHERWISE IN HER FIRST YEAR THE TEXAS BUDGET GREW BY AN ENORMOUS ELEVEN POINT FIVE PERCENT IN REAL TERMS OR MORE THAN SIX HUNDRED FIFTY DOLLARS PER FAMILY THAT SPENDING BURST OUTPACED ALL BUT A SMALL HANDFUL OF STATES TEXAS HAS NO CORPORATE OR PERSONAL INCOME TAX BUT GOVERNOR RICHARDS HAS WASTED NO TIME RESORTING TO AN ASSORTMENT OF OTHER BUSINESS TAXES AND GAS TAX HIKES TO BRING MORE REVENUE INTO AUSTIN JOHN ENGLER HAS HELPED CATAPULT MICHIGAN ONCE DERIDED AS THE RUST BELT STATE INTO ONE OF THE FASTEST GROWING STATES IN THE UNION LAST YEAR MICHIGAN'S UNEMPLOYMENT RATE FELL BELOW THE NATIONAL AVERAGE FOR THE FIRST TIME IN TWENTY FIVE YEARS MR. ENGLER HAS CUT THE STATE WORK FORCE BY FOUR THOUSAND WORKERS ELIMINATED AN ENTIRE DEPARTMENT AND HALVED SPENDING ON THE ARTS COMMERCE LABOR AND CIVIL RIGHTS HE ABOLISHED THE STATE'S GENERAL ASSISTANCE WELFARE PROGRAM FOR SOME EIGHTY THOUSAND EMPLOYABLE ADULTS THUS DISPROVING THE IRON RULE THAT ENTITLEMENTS CANNOT BE ELIMINATED LOWELL WEICKER OF CONNECTICUT HAS WON THE MANTLE AS AMERICA'S CHAMPION TAX AND SPEND GOVERNOR EDGING OUT NEW JERSEY'S JIM FLORIO FOR THIS IGNOMINIOUS DISTINCTION FOLLOWING A DECADE WHEN CONNECTICUT'S BUDGET INCREASED BY ONE HUNDRED FIFTY PERCENT MR. WEICKER'S SOLUTION TO THE RESULTING RED INK WAS TO ENACT A MASSIVE TAX HIKE IN NINETEEN NINETY ONE MR. WEICKER WON NARROW SUPPORT IN THE LEGISLATURE FOR THE STATE'S FIRST PERSONAL INCOME TAX IN EXCHANGE FOR A DECLINE IN THE STATE SALES TAX FOR THE AVERAGE CONNECTICUT TAXPAYER THIS WAS A ROTTEN DEAL THE REAL TAX BURDEN HAS CLIMBED BY TWO THOUSAND DOLLARS PER FAMILY OVER ROUGHLY THIS SAME PERIOD NINETEEN EIGHTY NINE TO NINETY TWO REAL INCOME PER FAMILY IN CONNECTICUT HAS DROPPED BY SOME TWO THOUSAND DOLLARS AND JOBS HAVE BEEN DISAPPEARING KIRK FORDICE IS MISSISSIPPI'S FIRST REPUBLICAN GOVERNOR IN ONE HUNDRED FIFTEEN YEARS A SELF MADE BUSINESSMAN MR. FORDICE HAS PURSUED AN UNAPOLOGETIC PRO BUSINESS PRO JOBS AGENDA HE HAS REFUSED TO CONSIDER ANY TAX HIKES AS PROMISED INSTEAD TRIMMING THE BUDGET BY NEARLY FIVE PERCENT OVER HIS FIRST TWO YEARS IN OFFICE BECAUSE OF MR. FORDICE'S TIGHTFISTEDNESS THE BUDGET IS NOW RUNNING A SURPLUS AND HE WANTS TO ERASE IT BY CUTTING INCOME TAXES MIKE LOWRY OF WASHINGTON HAS SET OUT TO AS THE ALMANAC OF AMERICAN POLITICS PUTS IT MAKE WASHINGTON A LABORATORY FOR LIBERAL REFORM MR. LOWRY PLEDGED DURING THE NINETEEN NINETY TWO CAMPAIGN TO RAISE TAXES ONLY AS A LAST RESORT THEN HE RAISED TAXES BY ONE BILLION DOLLARS AS A FIRST RESORT THE MONEY WILL BE USED FOR A UNIVERSAL HEALTH CARE PROGRAM WHICH REQUIRES BUSINESSES TO PROVIDE INSURANCE FOR ALL EMPLOYEES THE TAXPAYER COST TO COVER THE UNINSURED IS EXPECTED TO TOP TWO BILLION DOLLARS BY TWO THOUSAND SO FAR MR. LOWRY LOOKS TO BE THE JIM FLORIO OF THE WEST THE MAJOR FISCAL POLICY LESSON FROM THE STATES IN THE NINETEEN NINETIES SO FAR HAS BEEN THAT THOSE GOVERNORS WHO TRIED TO COMBAT BUDGET DEFICITS WITH MAJOR TAX INCREASES HARMED THEIR STATES' ECONOMIES WHILE HAVING VERY LITTLE SUCCESS SLOWING THE TIDE OF RED INK CALIFORNIA CONNECTICUT NEW JERSEY RHODE ISLAND AND PENNSYLVANIA ARE ALL UNHAPPY TESTAMENTS TO THE ECONOMIC CONSEQUENCES OF RAISING STATE TAXES MEANWHILE THE BUDGET CUTTING FISCAL STRATEGY EMPLOYED BY GOVS ENGLER FORDICE MERRILL WELD AND WILDER HAS LED TO BALANCED BUDGETS AND IMPROVED ECONOMIC CONDITIONS IN FACT MOST OF THESE GOVERNORS HAVE NOW PROPOSED TAX CUTS TO FURTHER ENCOURAGE BUSINESS AND JOB FORMATION THERE IS A LESSON HERE NOT JUST FOR STATE POLICY MAKERS BUT FOR CONGRESS AND THE WHITE HOUSE AS WELL MR. MOORE IS DIRECTOR OF FISCAL POLICY STUDIES AT THE CATO INSTITUTE BANKAMERICA CORPORATION'S PROPOSED ONE POINT NINE BILLION DOLLAR ACQUISITION OF CONTINENTAL BANK CORPORATION IS YET ANOTHER SIGN THAT CORPORATE BANKING HAS BEEN RESURRECTED IN A NEW TECHNOLOGICAL FORM A HANDFUL OF MAJOR BANKS ARE NO LONGER JUST LENDING MONEY TO COMPANIES BUT PROVIDING MYRIAD COMPUTER BASED SERVICES THAT MATE THEM TO THEIR CUSTOMERS IN LUCRATIVE LONG TERM MARRIAGES THESE ELECTRONIC SERVICES HELP COMPANIES MANAGE RISK DO BUSINESS OVERSEAS AND SLASH PAYROLLS BY QUOTE OUT SOURCING QUOTE MANY FINANCIAL FUNCTIONS TO THEIR BANKERS DOZENS OF HIGHLY TECHNICAL PRODUCTS AND SERVICES FROM DERIVATIVES THAT GUARD AGAINST INTEREST RATE SWINGS TO AUTOMATED LOCK BOX SYSTEMS THAT ENSURE SPEEDY DEPOSIT OF CHECKS ARE THE HOTTEST TOOLS OF THE BANKER'S TRADE WHAT'S HAPPENED IS THAT WE'VE DEVELOPED A WHOLE SERIES OF PRODUCTS THAT EMPLOY ADVANCED TECHNOLOGY OBSERVES LEWIS COLEMAN BANKAMERICA'S CHIEF FINANCIAL OFFICER WHEN YOU GET WIRED INTO A CUSTOMER'S INFORMATION SYSTEM AND THEY GET WIRED INTO YOU IT BECOMES MECHANICALLY DIFFICULT TO LOSE THAT BUSINESS EXPANDING A NEW KIND OF CORPORATE BANKING RELATIONSHIP IS THE DRIVING FORCE BEHIND BANKAMERICA'S ONE POINT NINE BILLION DOLLAR BID FOR CONTINENTAL THE CHICAGO BANK DOESN'T HAVE ANY RETAIL BRANCHES IT HAS TWO THOUSAND CORPORATE CUSTOMERS INCLUDING SUCH PUBLICLY HELD COMPANIES AS CHRYSLER CORPORATION DEERE AND COMPANY AND ALLSTATE CORPORATION MAJOR PRIVATE CONCERNS AND MANY PROSPEROUS SMALLER FIRMS BANKAMERICA BASED IN SAN FRANCISCO WANTS TO SELL THEM SERVICES LENDING MONEY IS JUST AN ENTREE THE SAME STRATEGY PREVAILS AT THE OTHER MAJOR BANKS THAT HAVE MASTERED THE SWITCH TO TECHNOLOGY BASED SERVICES SUCH AS NEW YORK'S J. P. MORGAN AND COMPANY BANKERS TRUST NEW YORK CORPORATION CITICORP AND CHEMICAL BANKING CORPORATION AND MORE RECENTLY NATIONSBANK CORPORATION AND FIRST UNION CORPORATION WHICH ARE BOTH IN CHARLOTTE N. C. AT THESE BANKS PROFITS FROM NONLENDING SOURCES IS SURGING RISING TO FORTY SIX PERCENT OF CHEMICAL'S CORPORATE REVENUE FOR THE FIRST NINE MONTHS OF NINETEEN NINETY THREE COMPARED WITH FORTY PERCENT IN NINETEEN NINETY TWO FOR INSTANCE AT CONTINENTAL ONLY ONE THIRD OF ROUGHLY ONE BILLION DOLLARS IN ANNUAL REVENUE CAME FROM LENDING LAST YEAR DOWN CONSIDERABLY FROM NINETEEN NINETY TWO PEOPLE HAVE BEEN PREDICTING THE DEMISE OF CORPORATE BANKING FOR TWENTY SIX YEARS SAID WILLIAM VANDIVER PRESIDENT OF THE NATIONSBANK INSTITUTIONAL BANK UNIT WHO HAS BEEN IN BANKING FOR TWENTY SIX YEARS AND IN FACT CORPORATE LENDING AS A PROFIT CENTER IS DYING BUT THE DOOMSAYERS MISSED THE FACT THAT THE CORPORATE BUYER SPENDS A HECK OF A LOT OF MONEY ON FINANCIAL SERVICES THERE'S AN AWFUL LOT OF MONEY TO BE MADE BANKAMERICA AND CONTINENTAL KNOW THE POTENTIAL VALUE OF CORPORATE BANKING AS WELL AS ANYONE PROFITS FROM THAT SOURCE HAVE SOARED AT BANKAMERICA TO FIFTY PERCENT OF NET INCOME LAST YEAR FROM TWENTY FIVE PERCENT FIVE YEARS AGO THE RETURN ON ASSETS IS NOW HIGHER FROM CORPORATE BANKING THAN FROM RETAIL BANKING CONTINENTAL CAME BACK FROM THE DEAD BY FOCUSING EXCLUSIVELY ON THE COMMERCIAL SIDE GENERATING STRONG PROFITS IN THE LAST TWO YEARS AFTER A LONG ROCKY REBOUND FROM A FEDERALLY FINANCED BAILOUT IN THE MID NINETEEN EIGHTIES ITS RETURN ON ASSETS WAS ONE POINT TWO PERCENT LAST YEAR SURPASSING THE ONE PERCENT LEVEL CONSIDERED HEALTHY IN BANKING AND EXCEEDING BANKAMERICA'S ONE POINT OH FIVE PERCENT QUOTE WHATEVER THE MYTHOLOGY ABOUT HOW BAD IT IS CORPORATE BANKING CAN BE VERY PROFITABLE IF YOU'RE FOCUSED AND EFFICIENT QUOTE SAYS THOMAS C. THEOBALD CONTINENTAL'S FIFTY SEVEN YEAR OLD CHAIRMAN WHO WILL STEP ASIDE AFTER THE DEAL IS COMPLETED THAT IS EXPECTED IN THE THIRD QUARTER PENDING REGULATORY AND SHAREHOLDER APPROVAL AS WELL AS A DUE DILIGENCE REVIEW BY BANKAMERICA BANKAMERICA HAS ASSETS OF NEARLY ONE HUNDRED EIGHTY SEVEN BILLION DOLLARS CONTINENTAL'S ASSETS TOTAL NEARLY TWENTY THREE BILLION DOLLARS WHAT MAKES THESE NEW BANKERS EFFICIENT IS A MASTERY OF TECHNOLOGY BANKAMERICA SPENT HUNDREDS OF MILLIONS OF DOLLARS ON AN INTERNATIONAL COMPUTER NETWORK IN THE MID NINETEEN EIGHTIES NOW ONLY IT AND A HANDFUL OF BANKS INCLUDING CITICORP AND CHASE MANHATTAN CORPORATION CAN OFFER U. S. COMPANIES A HOST OF ESSENTIAL SERVICES ANYWHERE IN THE WORLD RANGING FROM FOREIGN EXCHANGE TRADING TO DEPOSIT AND CHECK CLEARING FUNCTIONS BANKAMERICA HAS AN EDGE OVER OTHER RIVALS DOMESTICALLY BECAUSE IT DOMINATES THE HIGHLY AUTOMATED BUSINESS OF CHECK PROCESSING NEARLY ONE OUT OF EVERY EIGHT CHECKS WRITTEN IN THE U. S. ROLLS THROUGH ITS MASSIVE PROCESSING CENTERS FOR INTERNATIONAL BUSINESS MACHINES CORPORATION WHICH RECENTLY RAISED TEN BILLION DOLLARS OF CREDIT AT RAZOR THIN INTEREST RATES THROUGH CHEMICAL BANK RELATIONSHIPS ARE EVERYTHING SAYS FREDERICK W. ZUCKERMAN I. B. M.'S TREASURER CORPORATE BANKING IN TERMS OF LENDING MONEY ISN'T ALL THAT ATTRACTIVE MR. ZUCKERMAN CONCEDES BUT FOR BANKS TO GET I. B. M.'S MORE PROFITABLE FEE BASED BUSINESS THE COMPANY WANTS THEM TO COMMIT FUNDS TO A CREDIT AGREEMENT IT BUYS A TICKET OF ADMISSION TO THE GAME SAYS MR. ZUCKERMAN IT WAS PROBABLY A COSTLY TICKET I. B. M. RECEIVED INTEREST RATES AT LESS THAN ONE THIRD OF A PERCENTAGE POINT OVER SHORT TERM INTEREST RATES AND OBTAINED A FIVE YEAR CREDIT LINE LONGER THAN WHAT MOST BANKS PREFER BANKS WERE NICE ENOUGH TO DO THAT HE SAYS BUT MR. ZUCKERMAN NOTES THAT THERE ARE ALL SORTS OF FEE BASED TRANSACTIONS DONE WITH BANKS AROUND THE WORLD I. B. M. FOR EXAMPLE TURNS TO ITS BANKS FOR HUMDRUM BUSINESSES SUCH AS REGISTRAR AND TRANSFER AGENT FOR ITS STOCK AND TRUSTEE FOR ITS PENSION FUND IN ADDITION THE COMPUTER MAKER USES BANKS FOR FOREIGN EXCHANGE AND DERIVATIVE INSTRUMENTS THAT HELP MANAGE THE COMPANY'S RISK FROM FLUCTUATING CURRENCIES SIXTY PERCENT OF ITS REVENUE COMES FROM OUTSIDE THE U. S. WHILE DECLINING COMMENT ON THE COST TO I. B. M. MR. ZUCKERMAN SAYS THAT MARGINS IN THOSE BUSINESSES QUOTE ARE LESS TIGHT QUOTE FOR BIG BANKS HEWLETT PACKARD COMPANY BECAME A BANKAMERICA CUSTOMER THROUGH THE BANK'S NINETEEN NINETY ONE MERGER WITH SECURITY PACIFIC CORPORATION IN ADDITION TO CREDIT LINES AND FOREIGN EXCHANGE DATA THE BANK SUPPLIES H. P. WITH A NATIONWIDE CASH MANAGEMENT SERVICE THESE SERVICES ARE NECESSARY TO RUN A BUSINESS LIKE OURS WE HAVE TO HAVE THEM SAYS STEVE PAVLOVICH A TREASURY DEPARTMENT MANAGER AT H. P. BEYOND PROVIDING THAT BASIC SERVICE BANKAMERICA HELPED H. P. IMPROVE PRODUCTIVITY WITHIN ITS TREASURY FUNCTION FIVE YEARS AGO H. P. HAD TO USE EMPLOYEES IN SEVERAL PARTS OF THE COUNTRY TO COORDINATE CASH COLLECTIONS TODAY BECAUSE OF NEW BANK TECHNOLOGY IT CAN COORDINATE THE FUNCTION FROM JUST ONE LOCATION AND WITH FEWER EMPLOYEES BANKS ARE A TREMENDOUS SOURCE OF CREATIVITY OF FINANCIAL RESEARCH AND DEVELOPMENT IN THAT SENSE WE ARE MORE DEPENDENT ON THEM MR. PAVLOVICH SAYS NONETHELESS SOME INDUSTRY ANALYSTS AREN'T CONVINCED THAT CORPORATE BANKING IS THE GOLD MINE BANKAMERICA THINKS IT IS UNTIL THE PAST FEW YEARS LOSSES ON CORPORATE LENDING FREQUENTLY WIPED OUT MOST IF NOT ALL OF THE INDUSTRY'S PROFITS FROM FEE BASED PRODUCTS AND SERVICES LENDING IS TEMPORARILY PROFITABLE NOW BECAUSE OF LOW INTEREST RATES THEY SAY BUT WHEN RATES RISE BANKS MAY FIND THE RELATIONSHIP GAME ISN'T AS ATTRACTIVE FOR THEM AS FOR THEIR CUSTOMERS SAYS ONE ANALYST CORPORATE TREASURERS ARE FICKLE FOREIGN COMPETITORS WITH FEWER REGULATORY RESTRICTIONS IN THEIR HOME MARKETS ARE MOUNTING A FORMIDABLE CHALLENGE WITH THEIR OWN ELECTRONIC NETWORKS CREDIT LYONNAIS S. A. DEUTSCHE BANK A. G. SWISS BANK CORPORATION AND C. S. HOLDING'S CREDIT SUISSE HAVE ALL TARGETED WHOLESALE BANKING IN THIS COUNTRY BRINGING AN INTERNATIONAL EXPERTISE AND CANADIAN BANKS ARE BIG IN THE CABLE TELEVISION MARKET AND IN LENDING TO ENERGY PROJECTS VIRTUALLY ALL HAVE BOTH DEBT AND EQUITY UNDERWRITING POWERS MOREOVER CORPORATE BANKS SUCH AS J. P. MORGAN AND BANKERS TRUST DON'T HAVE THE DISTRACTIONS OF BIG RETAIL OPERATIONS LIKE BANKAMERICA AND NATIONSBANK QUOTE I'VE NEVER SEEN A COMPANY YET THAT IS A GREAT CORPORATE BANK AND A GREAT RETAIL BANK AT THE SAME TIME QUOTE SAYS THOMAS BROWN AN ANALYST WITH DONALDSON LUFKIN AND JENRETTE BUT RICHARD ROSENBERG SIXTY THREE BANKAMERICA'S CHAIRMAN AND MR. THEOBALD OF CONTINENTAL SEE NATIONWIDE OR GLOBAL ELECTRONIC SERVICES AS INCREASINGLY ATTRACTIVE THEY SAY BANKS HAVE DEVELOPED MANY MORE PRODUCTS THAT NOW CHALLENGE THE TURF OF SECURITIES FIRMS THAT THE HIGH COST OF BUILDING COMPUTER NETWORKS AND SOFTWARE PRODUCTS DETERS POTENTIAL NEW COMPETITION AND THAT COMPETITION ACTUALLY HAS DECREASED MANY SMALLER U. S. BANKS HAVE ABANDONED BUSINESS CUSTOMERS IN THEIR PURSUIT OF RETAIL PROFITS ONLY TO FIND NONBANK MORTGAGE LENDERS AND CREDIT CARD ISSUERS DRIVING DOWN MARGINS IN THAT SEGMENT JAPANESE BANKS FORMERLY MAJOR PLAYERS AND OTHER FOREIGN BANKS ARE IN WHOLESALE RETREAT MR. THEOBALD A FORMER CITICORP EXECUTIVE WHO JOINED CONTINENTAL IN NINETEEN EIGHTY SEVEN SAYS THE JAPANESE MARKET SHARE IN BUSINESS LOANS HAS FALLEN TO TWENTY SEVEN PERCENT FROM FORTY PERCENT SEVERAL YEARS AGO THAT'S NOT RECOGNIZED IN THE MARKETPLACE HE SAYS IT'S ALMOST THE EQUIVALENT OF THE JAPANESE AUTO MAKERS CUTTING THEIR U. S. SALES IN HALF MR. ROSENBERG SAYS THE DECISION TO EXPAND BANKAMERICA'S CORPORATE BUSINESS IN THE MIDWEST WAS MADE BY THE BOARD SOME TIME AGO IT IS BELIEVED THAT BANKAMERICA INITIALLY MADE OVERTURES TO CONTINENTAL'S CHICAGO RIVAL FIRST CHICAGO CORPORATION BUT WAS REBUFFED RICHARD THOMAS FIRST CHICAGO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL ONLY SAY THAT GENERALLY EVERYBODY'S TALKING TO EVERYBODY MR. ROSENBERG THEN ARRANGED TO MEET WITH MR. THEOBALD IN CHICAGO LAST AUGUST IN EARLY DECEMBER AFTER MORE MEETINGS WITH THE CONTINENTAL CHIEF MR. ROSENBERG ORDERED HIS BANKAMERICA TEAM CODENAMED BEAR TO NEGOTIATE IN EARNEST WITH CONTINENTAL WHICH WAS GIVEN THE NAME CONDOR A DEAL WAS STRUCK SHORTLY AFTER MIDNIGHT THURSDAY UNDER THE TERMS CONTINENTAL SHAREHOLDERS WILL RECEIVE NINE HUNDRED THIRTY NINE MILLION DOLLARS OF CASH AND TWENTY ONE POINT THREE MILLION SHARES OF BANKAMERICA STOCK EQUAL TO THIRTY SEVEN DOLLARS AND FIFTY CENTS A SHARE THE PRICE IS A PREMIUM OF THIRTY FIVE PERCENT OVER CONTINENTAL'S TRADING LEVEL BEFORE THE DEAL WAS ANNOUNCED IN NEW YORK STOCK EXCHANGE TRADING FRIDAY CONTINENTAL'S STOCK JUMPED SIX POINT ONE TWO FIVE DOLLARS A SHARE TO THIRTY FOUR DOLLARS MR. THEOBALD PUT CONTINENTAL UP FOR SALE BECAUSE IT NEEDED MORE FINANCIAL MUSCLE AND MORE OF A NATIONWIDE SCALE TO INCREASE ITS BUSINESS WITH CORPORATE CUSTOMERS AFTER ITS TROUBLES TEN YEARS AGO CONTINENTAL SHRANK FROM BEING THE SIXTH LARGEST U. S. BANK TO THIRTY THIRD MR. THEOBALD HIMSELF STANDS TO MAKE AN ESTIMATED TWENTY MILLION DOLLARS FROM STOCK HE PURCHASED OVER THE YEARS AS WELL AS FROM OPTIONS GRANTED BY THE COMPANY AND CONTINENTAL'S MANAGEMENT AS A WHOLE HOLDS OPTIONS VALUED AT SEVENTY FIVE MILLION DOLLARS A BANKAMERICA OFFICER SAID THE FEDERAL DEPOSIT INSURANCE CORPORATION ESTIMATES THE GOVERNMENT'S TOTAL LOSS ON THE FOUR POINT FIVE BILLION DOLLAR BAILOUT AT ONE POINT OH THREE BILLION DOLLARS FROM BANKAMERICA'S PERSPECTIVE THERE WERE SOME CLEVER ANGLES TO THE DEAL IN A WAY THE PURCHASE IS LIKE A LEVERAGED BUYOUT BECAUSE BANKAMERICA PLANS TO LIQUIDATE CONTINENTAL'S SECURITIES HOLDINGS CUTTING ITS SIZE NEARLY IN HALF AS A RESULT CONTINENTAL WILL BE OVERCAPITALIZED AND BANKAMERICA CAN IN EFFECT USE THAT EXCESS CAPITAL TO FINANCE MUCH OF THE PURCHASE BY ELIMINATING AS MANY AS EIGHT HUNDRED REDUNDANT POSITIONS AND OVERLAPPING OFFICES BANKAMERICA CAN ALSO CUT OPERATING EXPENSES AT CONTINENTAL BY ABOUT NINETY MILLION DOLLARS A YEAR IT CAN ALSO USE ITS LOW COST RETAIL DEPOSITS AND SUPERIOR CREDIT RATING TO REDUCE CONTINENTAL'S BORROWING COSTS BY AT LEAST FIFTY MILLION DOLLARS A YEAR BANKAMERICA WILL SHIFT ITS U. S. CORPORATE BANKING GROUP TO CHICAGO IT NAMED TWO CONTINENTAL VICE CHAIRMEN MICHAEL MURRAY AND WILLIAM GOODYEAR TO HEAD THE OPERATION BANKAMERICA ALSO PLANS TO BUY BACK FIVE HUNDRED MILLION DOLLARS OF ITS OWN SHARES WHICH WILL PREVENT THE ACQUISITION FROM DILUTING EARNINGS PER SHARE IN FACT CONTINENTAL'S OPERATIONS WILL PRODUCE A PROFIT IN THE FIRST YEAR AND ADD MODESTLY TO BANKAMERICA'S PER SHARE EARNINGS AFTER THAT BUT BANKAMERICA DIDN'T BUY CONTINENTAL FOR ITS INHERENT PROFITABILITY BUT FOR BROAD STRATEGIC PURPOSES IT WANTED CONTINENTAL'S LIST OF MOSTLY BLUE CHIP MIDWEST CORPORATE CUSTOMERS AND TO DRIVE FUTURE GROWTH BY PLUGGING THEM INTO BANKAMERICA'S NETWORK OF ELECTRONIC SERVICES IT FOUND IN ITS ACQUISITION OF SECURITY PACIFIC THAT SURPRISINGLY FEW OF THESE CUSTOMERS WILL LEAVE ACCORDING TO A SURVEY BY GOLDMAN SACHS AND COMPANY CONTINENTAL HAS A SIGNIFICANT BANKING RELATIONSHIP WITH SIXTEEN PERCENT OF THE ONE THOUSAND LARGEST FIRMS IN THE COUNTRY ADDED TO BANKAMERICA'S TWENTY NINE PERCENT SHARE THE COMBINED OPERATION PROBABLY WILL HAVE THE MOST CORPORATE CUSTOMERS IN THE U. S. VAULTING PAST CHEMICAL WITH ITS ONE THIRD SHARE GETTING SUCH CUSTOMERS IS A TOUGH FIRST STEP IN CORPORATE BANKING ONCE THEY ARE IN THE FOLD BANKAMERICA OFFERS THEM AS MANY AS SEVENTY DIFFERENT PRODUCTS AND SERVICES ONCE YOU GET PEOPLE HOOKED WITH CREDIT YOU HAVE TO SELL THEM OTHER SERVICES SAYS DAVID COULTER A BANKAMERICA VICE CHAIRMAN WE HAVE VERY FEW STAND ALONE CREDIT CUSTOMERS IF WE HAD THEM WE'D HAVE TO HAVE A CONVERSATION TO GET THEM TO DO MORE WITH US OR WE'D PART WAYS QUOTE FOR SEVERAL YEARS THE STRATEGY HAS BEEN PAYING OFF BIG AND AS BANKAMERICA SPREADS MORE CUSTOMERS ACROSS ITS INVESTMENT IN TECHNOLOGY IT COULD BECOME EVEN MORE LUCRATIVE ITS PRETAX OPERATING MARGINS FOR INVESTMENT BANKING DEALS SUCH AS THE UNDERWRITING OF DEBT CAN RUN AS HIGH AS SEVENTY PERCENT FOR CAPITAL MARKETS OPERATIONS SUCH AS FOREIGN EXCHANGE TRADING FIFTY PERCENT AND FOR CASH MANAGEMENT SERVICES THIRTY PERCENT THE REVENUE PRODUCED BY ITS TRADING OPERATIONS ALONE HAS JUMPED FROM SIXTY SEVEN MILLION DOLLARS IN NINETEEN EIGHTY SIX TO FIVE HUNDRED SIXTY NINE MILLION DOLLARS LAST YEAR AND AS MR. COLEMAN BANKAMERICA'S C. F. O. POINTS OUT THERE IS A CORPORATE CUSTOMER BEHIND PRACTICALLY EVERY ONE OF THOSE TRADES JEFF BAILEY CONTRIBUTED TO THIS ARTICLE CANADIAN BUSINESS AND CONSUMER CONFIDENCE ROSE IN THE FOURTH QUARTER BUOYED BY IMPROVED ECONOMIC CONDITIONS THE CONFERENCE BOARD OF CANADA SAID THE BOARD'S INDEX OF BUSINESS CONFIDENCE INCREASED TEN PERCENT FROM THE THIRD QUARTER TO ONE HUNDRED FIFTY POINT EIGHT ITS HIGHEST LEVEL SINCE NINETEEN EIGHTY NINE ITS CONSUMER CONFIDENCE INDEX ROSE FOURTEEN PERCENT TO ONE HUNDRED FIVE POINT FIVE THE BOARD AN INDEPENDENT BUSINESS RESEARCH GROUP WARNED THAT THE INCREASE IN CONSUMER CONFIDENCE MAY BE SHORT LIVED IF THE JOB MARKET DOESN'T SHOW SIGNIFICANT GROWTH THE INDEXES WERE BASED ON DECEMBER SURVEYS OF FOUR HUNDRED CANADIAN BUSINESSES AND ONE THOUSAND HOUSEHOLDS SIEMENS NIXDORF INFORMATIONS SYSTEME A. G. THE COMPUTER UNIT OF SIEMENS A. G. SAID IT WILL OFFER ITS GERMAN WORKERS VOLUNTARY WORK TIME REDUCTION IN EXCHANGE FOR JOB SECURITY THE COMPANY IS ASKING WORKERS TO CUT THEIR HOURS TEN PERCENT TO FIFTEEN PERCENT A SPOKESWOMAN SAID THAT IF ENOUGH EMPLOYEES SUBSCRIBE TO THE PROGRAM JOB CUTS FOR THE UNIT THAT HAVE ALREADY BEEN ANNOUNCED COULD BE REDUCED SIEMENS HAD SAID IT EXPECTS TO CUT ABOUT FIVE THOUSAND POSITIONS THIS YEAR AT THE SNI UNIT SNI EMPLOYS ABOUT THIRTY ONE THOUSAND PEOPLE IN GERMANY WORKERS ARE BEING ASKED TO AGREE TO REDUCED HOURS FOR AS LONG AS FOUR YEARS AMID THE CELEBRATION OF THE NINETEEN NINETY TWO DEMOCRATIC CONVENTION CAME SOME JARRING WORDS FROM FORMER REPRESENTATIVE BARBARA JORDAN OF TEXAS QUOTE WE MUST ADDRESS THE QUESTION OF ENTITLEMENTS QUOTE SHE TOLD DEMOCRATS IN HER KEYNOTE ADDRESS THAT'S NOT EASY SHE ADDED REPEATING THE PHRASE TWICE FOR EMPHASIS BUT WE HAVE TO DO IT WE HAVE TO DO IT MS. JORDAN'S BOOMING MESSAGE SIGNALED THE EMERGENCE OF A NEW RHETORICAL CONSENSUS IN MAINSTREAM AMERICAN POLITICS ENTITLEMENTS A FUZZY WORD FOR GOVERNMENT BENEFITS RANGING FROM SOCIAL SECURITY TO FOOD STAMPS MUST BE CUT THE MANTRA WAS HEARD THROUGHOUT LAST YEAR'S BUDGET DEBATE AND DEMOCRATIC REPRESENTATIVE MARJORIE MARGOLIES MEZVINSKY FROM PHILADELPHIA'S MAIN LINE EVEN HELD A HIGHLY PUBLICIZED CONFERENCE LAST MONTH ON THE FUTURE OF ENTITLEMENTS ATTENDED BY PRESIDENT CLINTON BUT ACTIONS SPEAK LOUDER THAN WORDS IN THE MIDST OF THIS FLURRY OF ANTIENTITLEMENT TALK THE CLINTON ADMINISTRATION HAS LAID THREE LARGE NEW ENTITLEMENT PROGRAMS ON THE TABLE THE FIRST IS A HEALTH CARE REFORM PROPOSAL THAT ENTITLES EVERY AMERICAN TO A GENEROUS HEALTH INSURANCE PLAN THE SECOND IS A WELFARE REFORM PLAN THAT WINS PRAISE FROM CONSERVATIVES BY PROMISING TO QUOTE END WELFARE AS WE KNOW IT QUOTE BUT IN FACT AMOUNTS TO A COSTLY PROMISE OF A JOB FOR EVERY ABLE AMERICAN AND THE THIRD AND LEAST UNDERSTOOD IS VICE PRESIDENT AL GORE'S CALL FOR UNIVERSAL SERVICE ON THE INFORMATION SUPERHIGHWAY THE POPULAR NAME FOR A BROAD BAND SYSTEM THAT ALLOWS TWO WAY COMMUNICATIONS ON MULTIPLE CHANNELS THE NATION MUST AVOID CREATING A SOCIETY OF INFORMATION HAVES SEPARATE FROM INFORMATION HAVE NOTS MR. GORE SAID IN A RECENT SPEECH TO HOLLYWOOD HAVES SUCH AS DISNEY'S MICHAEL EISNER IT IS CRITICALLY IMPORTANT THAT ALL CARRIERS MUST BE OBLIGED TO CONTRIBUTE ON AN EQUITABLE AND COMPETITIVELY NEUTRAL BASIS TO THE PRESERVATION AND ADVANCEMENT OF UNIVERSAL SERVICE TRANSLATION WE MUST TAX PHONE CABLE AND OTHER INFORMATION SERVICES TO SUBSIDIZE ACCESS TO THE SUPERHIGHWAY FOR EVERYONE THE NOTION OF GUARANTEEING EVERYONE ACCESS TO A SERVICE THAT DOESN'T YET EXIST MAY SEEM MORE AMUSING THAN DISTURBING AFTER ALL WHAT IS BEING GUARANTEED THE INALIENABLE RIGHT TO SHOP FROM HOME BY VIDEO OR TO WATCH INTERACTIVE COURT TELEVISION AND CAST A PERSONAL VERDICT IN THE MENENDEZ TRIAL BUT MR. GORE AND HIS FOLLOWERS INSIST THAT TRAFFIC ON THE INFORMATION SUPERHIGHWAY WILL INCLUDE INVALUABLE EDUCATIONAL PROGRAMS HEALTH CARE HOT LINES AND JOB POSTING SERVICES ANYONE WITHOUT A VEHICLE COULD BE LEFT ON THE SHOULDER OF LIFE ADMINISTRATION OFFICIALS ALSO ARGUE THAT THEIR PROPOSAL WOULD MERELY EXPAND ON THE HUGE SUBSIDIES ALREADY IMPLICIT IN THE CURRENT REGULATED PHONE SYSTEM BUSINESS AND LONG DISTANCE USERS NOW SUBSIDIZE TELEPHONE RATES FOR RESIDENTIAL AND RURAL USERS BY AS MUCH AS TWENTY BILLION DOLLARS OR MORE A YEAR BUT THAT HIDDEN TELEPHONE SUBSIDY EXHIBITS THE VERY ATTRIBUTES THAT MAKE MORE EXPLICIT GOVERNMENT ENTITLEMENT PROGRAMS SO VEXING ONLY A SMALL PORTION OF THE TELEPHONE BENEFITS LESS THAN A BILLION DOLLARS SAYS ELI NOAM PROFESSOR OF FINANCE AND ECONOMICS AT THE COLUMBIA BUSINESS SCHOOL GOES TO THE TRULY NEEDY MOST OF THE SUBSIDY GOES TO THE MIDDLE CLASS AND A NOT INCONSEQUENTIAL PORTION GOES TO THE VERY AFFLUENT SUBSIDIZING FOR INSTANCE PHONE LINES TO TAOS N. M. AND ASPEN COLORADO THE SUBSIDY PLAN PROPOSED BY MR. GORE WILL PROBABLY BE SIMILAR THE ADMINISTRATION HAS NO THOUGHT OF REQUIRING THAT SUBSIDIES GO ONLY TO THE NEEDY WHICH WOULD UNDERCUT THE POLITICAL BACKING THEY SEEK FROM POWERFUL SENATORS IN RURAL STATES WHO WANT THE SUBSIDIES TO SERVE THEIR CONSTITUENTS INSTEAD THE ADMINISTRATION'S PLAN WILL PROBABLY LET STATES DETERMINE HOW TO SPEND THE MONEY AND POLITICS WILL DRIVE THAT MONEY TO THE MIDDLE CLASS WHERE THE VOTES ARE THE NATION CAN AFFORD TO PROVIDE IF IT WANTS WIDE RANGING SERVICES AND SUBSIDIES FOR THE POOR WHAT IT CAN'T AFFORD WITHOUT MUCH HIGHER TAXES IS TO CONTINUE TO EXPAND GOVERNMENT SUBSIDIES AND SERVICES FOR THE MIDDLE CLASS AS FORMER COMMERCE SECRETARY PETE PETERSON ILLUSTRATES IN HIS NEW BOOK FACING UP GOVERNMENT SPENDS ONE HUNDRED NINE POINT EIGHT BILLION DOLLARS A YEAR ON FEDERAL BENEFIT PROGRAMS FOR THOSE LIVING IN POVERTY IT SPENDS A FIVE HUNDRED SEVENTY POINT SEVEN BILLION DOLLAR FOR THOSE WHO AREN'T AND THE AVERAGE BENEFIT GOING TO HOUSEHOLDS WITH INCOMES OVER ONE HUNDRED THOUSAND DOLLARS IS LARGER THAN THAT GOING TO HOUSEHOLDS WITH INCOMES UNDER TEN THOUSAND DOLLARS SOME ECONOMISTS SAY THERE MAY BE AN ECONOMIC ARGUMENT FOR SUBSIDIZING UNIVERSAL ACCESS TO THE INFORMATION SUPERHIGHWAY IF EVERYONE IS ON IT IT WILL HAVE ADDED VALUE FOR BUSINESSES THAT WANT TO USE IT THAT IS A VARIANT OF WHAT ATLANTIC MAGAZINE HAS DUBBED MR. CLINTON'S FIELD OF DREAMS THEORY OF ECONOMIC GROWTH WHICH ARGUED THAT IF YOU BUILD BETTER PUBLIC INFRASTRUCTURE PRIVATE INVESTMENT WILL COME BUT THAT ISN'T THE ARGUMENT MR. GORE IS MAKING INSTEAD HE IS PAVING THE WAY FOR A BIG NEW MIDDLE CLASS ENTITLEMENT PROGRAM THAT WOULD INCREASE THE GOVERNMENT'S DRAG ON THE ECONOMY FOR DECADES TO COME THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT LEAR SEATING CORPORATION ONE HUNDRED FORTY FIVE MILLION DOLLARS OF SUBORDINATED NOTES DUE FEBRUARY FIRST TWO THOUSAND TWO WERE PRICED AT PAR TO YIELD EIGHT AND ONE QUARTER PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FOUR YEARS AND ARE RATED SINGLE B. TWO BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE B. MINUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED ILLINOIS BELL TELEPHONE COMPANY ONE HUNDRED MILLION DOLLARS OF DEBENTURES DUE FEBRUARY FIRST TWO THOUSAND FOUR WERE PRICED AS FIVE POINT EIGHTS AT NINETY NINE POINT FOUR NINE FIVE TO YIELD FIVE POINT EIGHT SIX SEVEN PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NON CALLABLE DEBENTURES WERE PRICED AT A SPREAD OF TWENTY FIVE BASIS POINTS ABOVE TREASURYS RATED TRIPLE A BY MOODY'S AND S. AND P. THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY GOLDMAN SACHS AND COMPANY ILLINOIS BELL IS A UNIT OF AMERITECH ILLINOIS BELL TELEPHONE COMPANY ONE HUNDRED MILLION DOLLARS OF DEBENTURES DUE FEBRUARY FIRST TWO THOUSAND TWENTY FIVE WERE PRICED AS SIX AND FIVE SLASH EIGHTS AT NINETY SEVEN POINT ONE EIGHT THREE TO YIELD SIX POINT EIGHT FOUR FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE DEBENTURES WHICH ARE NONCALLABLE FOR TEN YEARS WERE PRICED AT A SPREAD OF FIFTY TWO BASIS POINTS ABOVE TREASURYS RATED TRIPLE A BY MOODY'S AND DOUBLE A ONE BY S. AND P. THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY LEHMAN BROTHERS FEDERAL HOME LOAN MORTGAGE CORPORATION SEVEN HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES WERE OFFERED BY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION THE OFFERING SERIES ONE THOUSAND SIX HUNDRED EIGHTY NINE IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES FEDERAL HOME LOAN MORTGAGE CORPORATION FIVE HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES WERE OFFERED BY KIDDER PEABODY AND COMPANY THE OFFERING SERIES ONE THOUSAND SIX HUNDRED NINETY ONE IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN POINT FIVE PERCENT MORTGAGE SECURITIES FEDERAL HOME LOAN MORTGAGE CORPORATION THREE HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES WERE OFFERED BY BEAR STEARNS AND COMPANY THE OFFERING SERIES ONE THOUSAND SIX HUNDRED EIGHTY EIGHT IS BACKED BY TWO HUNDRED FORTY MILLION DOLLARS OF THE AGENCY'S TWENTY YEAR SEVEN AND ONE HALF PERCENT MORTGAGE SECURITIES AND SIXTY MILLION DOLLARS OF THE AGENCY'S TWENTY YEAR SIX PERCENT SECURITIES FEDERAL HOME LOAN MORTGAGE CORPORATION THREE HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES WERE OFFERED BY NIKKO SECURITIES COMPANY INTERNATIONAL THE OFFERING SERIES ONE THOUSAND SIX HUNDRED NINETY TWO IS BACKED BY THE AGENCY'S THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES FEDERAL FARM BANK CREDIT SYSTEM ONE HUNDRED FIFTY MILLION DOLLARS OF MEDIUM TERM NOTES DUE FEBRUARY FIFTH NINETEEN NINETY SIX WERE PRICED AT PAR TO YIELD FOUR POINT OH NINE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR ONE YEAR AND WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY AND COMPANY CANADA THE CANADIAN GOVERNMENT SAID IT INTENDS TO OFFER UP TO SIX HUNDRED MILLION CANADIAN DOLLARS FOUR HUNDRED FIFTY FIVE POINT TWO MILLION U. S. DOLLARS OF INFLATION INDEXED BONDS MATURING DECEMBER FIRST TWO THOUSAND TWENTY ONE THE BONDS CARRY A COUPON RATE OF FOUR POINT TWO FIVE PERCENT THE SEMI ANNUAL COUPON PAYMENTS AND THE FINAL REDEMPTION VALUE OF THE BONDS WILL BE ADJUSTED FOR INFLATION THE CANADIAN GOVERNMENT HAS SOLD TWO POINT ONE THREE BILLION CANADIAN DOLLARS OF SUCH BONDS PROCEEDS FROM HE PLANNED ISSUE WILL BE USED FOR GENERAL GOVERNMENT PURPOSES THE OFFERING PRICE AND OTHER DETAILS OF THE PLANNED ISSUE WILL BE ANNOUNCED LATER A GROUP OF THIRTEEN SECURITIES FIRMS HAS BEEN APPOINTED TO MARKET THE ISSUE STATENS BOSTADSFINANSIERINGS SWEDEN THIRTY BILLION YEN OF FLOATING RATE EURONOTES DUE FEBRUARY TWENTY SECOND NINETEEN NINETY NINE IN TWO TRANCHES VIA DAIWA EUROPE LIMITED AND FUJI INTERNATIONAL FINANCE P. L. C. THE FIRST TRANCHE TOTALING FIFTEEN BILLION YEN PAYS INTEREST QUARTERLY FLAT AT THREE MONTH LONDON INTERBANK OFFERED RATE FOR YEN ISSUE AND REOFFER PRICE NINETY NINE POINT EIGHT FIVE THE SECOND TRANCHE ALSO TOTALING FIFTEEN BILLION YEN PAYS INTEREST QUARTERLY AT THREE MONTH LIBOR PLUS TWENTY BASIS POINTS MAXIMUM COUPON FOUR POINT SEVEN PERCENT ISSUE AND REOFFER PRICE NINETY NINE POINT SEVEN OH FEES ZERO POINT TWO ZERO POINT GENERAL ELECTRIC CREDIT CORPORATION U. S. ONE HUNDRED MILLION DOLLARS OF FLOATING RATE NOTES MATURING MARCH NINETEEN NINETY SEVEN AT ISSUE AND RE OFFER PRICE ONE HUNDRED VIA KIDDER PEABODY SECURITIES COMPANY PRINCIPAL AND INTEREST LINKED TO THE MEXICAN PESO INTEREST PAID QUARTERLY AT TWENTY BASIS POINTS OVER NINETY ONE DAY CETES RATE FEES ONE QUARTER POINT G. E. CREDIT IS A UNIT OF GENERAL ELECTRIC COMPANY OESTERREICHISCHE POSTSPARKASSE AUSTRIA ONE HUNDRED MILLION DOLLARS OF CORRIDOR FLOATING RATE EURONOTES DUE FEBRUARY TWENTY FIFTH NINETEEN NINETY FIVE AT ISSUE PRICE PAR VIA CREDITANSTALT BANKVEREIN LONDON BRANCH NOTES LINKED TO LONDON INTERBANK OFFERED RATE FOR ITALIAN LIRA INTEREST PAID SEMI ANNUALLY AT FOUR POINT FIVE PERCENT OVER THREE MONTH LIRA LIBOR SUBJECT TO LIBOR FALLING WITHIN FOLLOWING SIX MONTH LIBOR RANGES RANGE ONE SEVEN POINT FIVE PERCENT TO NINE PERCENT RANGE TWO SIX POINT FIVE PERCENT TO EIGHT POINT FIVE PERCENT GUARANTOR REPUBLIC OF AUSTRIA FEES ZERO POINT ONE FIVE POINTS QUEENS CENTRE FUNDING CORPORATION U. S. SEVENTY MILLION DOLLARS OF MORTGAGE BACKED BONDS TWO TRANCHES WITH SCHEDULED MATURITY OF JANUARY FIRST NINETEEN NINETY NINE VIA LEHMAN BROTHERS INTERNATRIONAL BONDS SECURED ON COMMERCIAL MORTGAGES ORIGINATOR UNDISCLOSED STATED MATURITY JANUARY FIRST TWO THOUSAND FOUR TRANCHE A IS FOR SIXTY MILLION DOLLARS WITH INTEREST PAID QUARTERLY AT EIGHTY BASIS POINTS OVER THREE MONTH LIBOR BONDS ISSUED AND REOFFERED AT NINETY NINE POINT EIGHT SEVEN FOUR TRANCHE B. IS FOR TEN POINT TWO MILLION DOLLARS WITH INTEREST PAID QUARTERLY AT THREE MONTH LIBOR PLUS TWO HUNDRED FIFTEEN BASIS POINTS ISSUE AND REOFFER PRICE NINETY NINE POINT EIGHT SIX SEVEN FEES UNDISCLOSED SUDWEST L. B. CAPITAL MARKETS P. L. C. GERMAN PARENT ONE HUNDRED FIFTY BILLION ITALIAN LIRE OF EIGHT PERCENT EUROBONDS DUE FEBRUARY TWENTY FOURTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT EIGHT OH VIA BANCA DI ROMA COMPANY AT CO MANAGER'S BREAKEVEN PRICE NINETY NINE POINT EIGHT OH BONDS YIELD EIGHT POINT OH THREE PERCENT GUARANTOR SUDWESTDEUTSCHE LANDESBANK A. G. FEES TWO POINTS SUN HEALTHCARE GROUP INCORPORATED SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE MEDIPLEX GROUP INCORPORATED FOR ABOUT THREE HUNDRED SIXTEEN MILLION DOLLARS IN CASH AND STOCK THE ALBUQUERQUE N. M. OPERATOR OF NURSING HOMES ANNOUNCED JANUARY FOURTH THAT IT HAD TENTATIVELY AGREED TO ACQUIRE MEDIPLEX BASED IN WELLESLEY MASSACHUSETTS FOR ELEVEN DOLLARS IN CASH PLUS ONE POINT TWO EIGHT SUN SHARES FOR EACH SHARE OF MEDIPLEX WHICH HAS ABOUT NINE POINT SEVEN MILLION COMMON SHARES OUTSTANDING MEDIPLEX PROVIDES SUB ACUTE CARE WHICH INVOLVES THE TREATMENT OF PATIENTS DEPENDENT ON VENTILATORS UNDERGOING CHEMOTHERAPY OR RECOVERING FROM BURNS OR SURGERY THE TRANSACTION REMAINS SUBJECT TO THE APPROVAL OF REGULATORY AGENCIES AND OF THE SHAREHOLDERS OF BOTH COMPANIES LANDMARK GRAPHICS CORPORATION HOUSTON SAID IT AGREED TO MERGE ADVANCE GEOPHYSICAL CORPORATION INTO A SUBSIDIARY IN A TRANSACTION VALUED AT MORE THAN SIXTY MILLION DOLLARS THE DEAL WOULDN'T INVOLVE CASH BUT RATHER AN EXCHANGE OF STOCK A LANDMARK SPOKESMAN SAID UNDER TERMS IN A LETTER OF INTENT SIGNED LAST WEEK LANDMARK WOULD ISSUE TWO POINT SIX MILLION NEW COMMON SHARES TO ADVANCE BASED IN DENVER IN EXCHANGE FOR ALL OF ADVANCE'S CAPITAL STOCK A DEFINITIVE AGREEMENT IS EXPECTED TO BE REACHED IN ABOUT TWO WEEKS THE SPOKESMAN SAID IT WOULD CALL FOR THE APPROVAL BY THE BOARDS OF BOTH COMPANIES THE TRANSACTION IS EXPECTED TO CLOSE BY LATE MARCH BOTH COMPANIES ARE INVOLVED IN THE USE OF COMPUTER SYSTEMS FOR OIL AND GAS EXPLORATION AETNA LIFE AND CASUALTY COMPANY TOOK FURTHER STEPS TO STREAMLINE ITS SPRAWLING INSURANCE BUSINESS BUT ANALYSTS SAY THE CUTBACKS MIGHT NOT BE ENOUGH TO SOLVE THE COMPANY'S LONG TERM PROBLEMS AETNA ANNOUNCED FRIDAY THAT IT WILL TAKE A ONE POINT TWO EIGHT BILLION DOLLAR FOURTH QUARTER CHARGE TO RESTRUCTURE INCLUDING ABANDONING A BIG PART OF ITS PENSION BUSINESS AND ELIMINATING FOUR THOUSAND JOBS OR NEARLY TEN PERCENT OF ITS WORK FORCE AMONG THE PENSION PRODUCTS BEING SHED ARE GUARANTEED INVESTMENT CONTRACTS OR G. I. C.S ONE OF THE HOTTEST INSURANCE PRODUCTS OF THE NINETEEN EIGHTIES THE JOB CUTS HAD BEEN EXPECTED BUT THE SIZE OF THE RESULTING CHARGE SURPRISED WALL STREET STILL ANALYSTS SAID THE COMPANY MIGHT NEED TO TAKE FURTHER ACTIONS TO END A DECADE OF SLUGGISH PROFITS AND LACKLUSTER STOCK PRICE THESE COULD INCLUDE FOCUSING MORE ON PROFITABLE BUSINESSES SUCH AS HEALTH AND LIFE INSURANCE WHILE CONTINUING TO SHED UNPROFITABLE LINES QUOTE THIS MAKES THE SHORT TERM EARNINGS LOOK BETTER BUT IT DOESN'T MAKE IT A BETTER COMPANY GOING FORWARD QUOTE SAID ALAN ZIMMERMAN A STOCK ANALYST WITH PRUDENTIAL SECURITIES NEW YORK INVESTORS APPARENTLY RECOGNIZED THE SHORT TERM POSSIBILITIES OF THE LATEST RESTRUCTURING IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY AETNA ROSE ONE DOLLAR AND SEVENTY FIVE CENTS TO FIFTY NINE POINT EIGHT SEVEN FIVE DOLLARS WITH THE CHARGES AETNA EXPECTS TO REPORT A LOSS FOR THE FOURTH QUARTER AND FOR THE YEAR ONCE ONE OF THE COUNTRY'S MOST PROFITABLE INSURERS AETNA HAS BEEN HURT IN RECENT YEARS BY GROWING COMPETITION FROM MORE SPECIALIZED AND EFFICIENT RIVALS LIKE OTHER BIG INSURERS AETNA HAS TRIED TO BE ALL THINGS TO ALL CUSTOMERS AT THE SAME TIME THE COMPANY HAS INCURRED BIG LOSSES ON REAL ESTATE INVESTMENTS AND ENVIRONMENTAL CLAIMS WHILE BEING SADDLED WITH HIGH OVERHEAD EVEN WITH THE LATEST CUTBACKS AETNA REMAINS A HUGE INSURANCE SUPERMARKET OFFERING EVERYTHING FROM HEALTH INSURANCE TO COMMERCIAL LIABILITY COVERAGE TO WORKERS COMPENSATION POLICIES INSURANCE EXPERTS SAY AETNA APPEARS RESOLVED TO SLIM DOWN BUT IT'S UNCLEAR HOW FAR AETNA IS ON THE RIGHT TRACK SAID ANALYST ALICE CORNISH OF NORTHINGTON PARTNERS HARTFORD AETNA ISN'T ALONE OTHER SO CALLED MULTILINE INSURERS SUCH AS CIGNA CORPORATION I. T. T. CORPORATION'S HARTFORD INSURANCE UNIT AND TRAVELERS INCORPORATED'S TRAVELERS INSURANCE UNIT HAVE HAD PROBLEMS FOCUSING THEIR OPERATIONS MOST OF AETNA'S CHARGE STEMS FROM THE COMPANY'S DECISION TO STOP SELLING GUARANTEED INVESTMENT CONTRACTS AND SINGLE PREMIUM ANNUITIES THE TWO PENSION PRODUCTS HAVE BEEN A POWERFUL DRAG ON AETNA'S PROFITS IN RECENT YEARS WITH G. I. C.S INSURANCE COMPANIES GUARANTEE A SPECIFIC RATE OF RETURN OVER THE LIFE OF THE CONTRACT DURING THE NINETEEN EIGHTIES PROFIT SHARING PLANS AND CORPORATE PENSION PLANS EAGERLY SNAPPED UP G. I. C.S TO TAKE ADVANTAGE OF THE GENEROUS TERMS IN AETNA'S CASE THE G. I. C.S LARGELY WERE BACKED BY REAL ESTATE INVESTMENTS WHEN PROPERTY PRICES NOSE DIVED IN THE LATE NINETEEN EIGHTIES AND EARLY NINETEEN NINETIES THOSE REAL ESTATE ASSETS BEGAN EARNING LESS THAN WHAT AETNA NEEDED TO PAY G. I. C. INVESTORS RATHER THAN CONTINUING TO SUFFER LOSSES EACH QUARTER AETNA WILL TAKE AN EIGHT HUNDRED TWENTY FIVE MILLION DOLLAR CHARGE TO RECOGNIZE FUTURE LOSSES ALL AT ONCE SOME INSURERS HAVE PULLED OUT OF G. I. C.S INCLUDING EQUITABLE COMPANIES AND MUTUAL LIFE INSURANCE COMPANY OF NEW YORK OTHERS CONTINUE TO OFFER THE CONTRACTS ALTHOUGH AT LESS ATTRACTIVE TERMS THAN IN THE PAST AETNA SAYS THE FOUR THOUSAND JOB CUTS WILL SAVE THREE HUNDRED MILLION DOLLARS A YEAR IN PRETAX EXPENSES BY NINETEEN NINETY FIVE IT SPENT ABOUT THREE POINT FOUR BILLION DOLLARS ON OPERATING EXPENSES LAST YEAR THE COMPANY WILL TAKE A TWO HUNDRED MILLION DOLLAR CHARGE FOR SEVERANCE PAYMENTS AND RELATED EXPENSES AETNA EMPLOYS ABOUT FORTY TWO THOUSAND THREE HUNDRED ABOUT ONE THIRD OF THEM IN CONNECTICUT THE COMPANY SAID TWO THOUSAND JOB CUTS WILL COME IN PROPERTY AND CASUALTY ONE THOUSAND IN HEALTH AND ONE THOUSAND IN OTHER BUSINESSES THE JOBS WILL BE ELIMINATED OVER THE COURSE OF THE YEAR ANALYSTS SAY AETNA NOW MUST FOCUS ON IMPROVING RESULTS IN ITS PROPERTY AND CASUALTY INSURANCE BUSINESSES WHICH HAVE SUFFERED FROM INTENSE PRICE COMPETITION AND THE HIGH COSTS OF POLLUTION CLAIMS MOODY'S INVESTORS SERVICE CONFIRMED AETNA'S SENIOR DEBT RATING AT SINGLE A ONE ON FRIDAY BUT SAID THE OUTLOOK FOR THE COMPANY'S PROPERTY AND CASUALTY INSURANCE UNIT'S RATINGS IS NEGATIVE IN LIGHT OF THEIR MODEST EARNINGS IN CERTAIN BUSINESS UNITS AND THEIR NEED TO FURTHER REDUCE COSTS IN A HIGHLY COMPETITIVE ENVIRONMENT AETNA CHAIRMAN RONALD COMPTON SAID THE COMPANY'S REMAINING BUSINESSES ARE WELL POSITIONED BUT NEED FINE TUNING AS WE LOOK AHEAD WE WILL CONTINUE TO RE ENGINEER AND REPOSITION OUR BUSINESSES SO THAT WE CAN TAKE FULL ADVANTAGE OF THE PROFIT OPPORTUNITIES IN OUR CHOSEN MARKETS HE SAID WE NEED TO MOVE BUSINESS FUNCTIONS CLOSER TO THE CUSTOMER AND WE NEED TO CONTINUE TO FIND WAYS TO IMPROVE REVENUE GROWTH AND SERVICE TO OUR CUSTOMERS WHILE DRIVING DOWN COSTS THE JOB REDUCTIONS REPRESENT THE THIRD WAVE OF CUTS IN RECENT YEARS AND ARE ANOTHER BLOW TO THE CITY OF HARTFORD IN OCTOBER NINETEEN NINETY AETNA LAID OFF THREE THOUSAND WORKERS WHEN IN A BID TO BECOME MORE COMPETITIVE IT SPLIT THE COMPANY INTO FIFTEEN BUSINESS UNITS THAT REPORT PROFITS SEPARATELY IN JUNE NINETEEN NINETY TWO FOUR MONTHS AFTER MR. COMPTON TOOK THE REINS THE COMPANY ANNOUNCED ANOTHER FOUR THOUSAND EIGHT HUNDRED JOB CUTS THE CUTS HAVE IMPROVED RESULTS BUT AETNA'S PROFITS ARE ONLY ABOUT HALF AS STRONG AS MORE SUCCESSFUL COMPETITORS SUCH AS AMERICAN INTERNATIONAL GROUP INCORPORATED EVERY YEAR AETNA DOES SOMETHING AND EARNINGS LOOK BETTER AND THEN THE NEXT YEAR THEY DO SOMETHING ELSE THAT INVOLVES A COSTLY CHARGE SAID MICHAEL BLUMSTEIN OF MORGAN STANLEY NEW YORK AETNA ALSO CHANGED THE WAY IT ACCOUNTS FOR WORKERS COMPENSATION RESERVES RECOGNIZING THAT INJURED WORKERS COLLECT BENEFITS LONGER THAN IN THE PAST THE FIVE HUNDRED SEVENTY FOUR MILLION DOLLAR ADDITION TO WORKERS COMPENSATION RESERVES WILL RESULT IN A TWO HUNDRED FIFTY NINE MILLION DOLLAR CHARGE IF IT HADN'T TAKEN THE CHARGES AETNA WOULD HAVE REPORTED ABOUT SIX HUNDRED MILLION DOLLARS IN OPERATING PROFIT FOR NINETEEN NINETY THREE COMPARED WITH ONE HUNDRED NINETY TWO MILLION DOLLARS IN THE PRIOR YEAR AETNA WILL REPORT EARNINGS ON FEBRUARY NINTH THE NEW YORK STOCK EXCHANGE ANNOUNCED FIVE NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED SEVENTEEN NEW LISTINGS INCLUDING FOURTEEN INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS MID AMERICA APARTMENT COMMUNITIES INCORPORATED MEMPHIS TENNESSEE UNDER MAA A REAL ESTATE INVESTMENT TRUST O'SULLIVAN INDUSTRIES HOLDINGS INCORPORATED LAMAR MISSISSIPPI OSU A FURNITURE MAKER PLAYTEX PRODUCTS INCORPORATED STAMFORD CONNECTICUT PTX A MAKER OF PERSONAL CARE PRODUCTS SECURITY CONNECTICUT CORPORATION AVON CONNECTICUT AN INSURANCE HOLDING COMPANY AND AMERICAN DEPOSITORY SHARES OF CRISTALERIAS DE CHILE S. A. SANTIAGO CHILE CGW A PRODUCER OF GLASS CONTAINERS THE SHARES ARE LISTED ON THE SANTIAGO STOCK EXCHANGE THE NASDAQ BEGAN TRADING IN THE FOLLOWING INITIAL OFFERINGS IN ITS NATIONAL MARKET SYSTEM CMG INFORMATION SERVICES INCORPORATED WILMINGTON MASSACHUSETTS A DEVELOPER OF INFORMATION BASED PRODUCTS AND SERVICES CMGI COMMONWEALTH FEDERAL SAVINGS BANK VALLEY FORGE PENNSYLVANIA CMSB A SAVINGS BANK GAMETEK INCORPORATED NORTH MIAMI BEACH FLORIDA GAME A SOFTWARE PUBLISHER G. P. FINANCIAL CORPORATION FLUSHING N. Y. GNPT A SAVINGS BANK CONVERSION FROM MUTUAL TO STOCK FORM HARRIS SAVINGS BANK HARRISBURG PENNSYLVANIA HARS A SAVINGS BANK HILITE INDUSTRIES INCORPORATED CARROLLTON TEXAS HILI A MANUFACTURER OF ENGINEERED PARTS INTERIM SERVICES INCORPORATED FORT LAUDERDALE FLORIDA INTM A PERSONNEL SERVICES PROVIDER JAMESON INNS INCORPORATED ATLANTA GEORGIA JAMS ORGANIZED TO ACQUIRE EQUITY INTERESTS IN MOTEL PROPERTIES L.A.TT SPORTSWEAR INCORPORATED BALL GROUND GEORGIA LATS A SPORTSWEAR MANUFACTURER NEXAGEN INCORPORATED BOULDER COLORADO NXGN A PHARMACEUTICAL DEVELOPER P. I. PARENT CORPORATION SANTA CRUZ CALIFORNIA PLNX A MAKER OF TELEPHONE HEADSETS ANCHOR GAMING LAS VEGAS NEVADA SLOT AN OPERATOR OF GAME MACHINES PERSONNEL MANAGEMENT INCORPORATED SHELBYVILLE INDIANA TPM THE FOLLOWING COMPANIES ALSO BEGAN TRADING ON THE NASDAQ NATIONAL MARKET BOSTON CHICKEN INCORPORATED NAPERVILLE ILLINOIS BOSTG AN OPERATOR OF FOOD SERVICE STORES BATTERY TECHNOLOGIES INCORPORATED ONTARIO CANADA BTIOF A RESEARCH COMPANY AND JACKSON HEWITT INCORPORATED VIRGINIA BEACH VIRGINIA AN INCOME TAX SERVICE THE AMERICAN STOCK EXCHANGE BEGAN TRADING DEPOSITORY UNITS IN AMERICAN INSURED MORTGAGE INVESTORS L. P. SERIES EIGHTY SIX AND AMERICAN INSURED MORTGAGE INVESTORS L. P. SERIES EIGHTY EIGHT AMEX ALSO BEGAN TRADING SALOMON INCORPORATED'S EQUITY LINKED SECURITIES TIED TO SNAPPLE BEVERAGE CORPORATION COMMON STOCK AND LISTED ONE POINT EIGHT MILLION CONSTANT MATURITY U. S. TREASURY YIELD INCREASE WARRANTS ISSUED BY MERRILL LYNCH AND COMPANY THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON ANTEC CORPORATION THE C. B. O. E. ALSO LISTED LEAPS ON AMOCO CORPS LINCARE HOLDINGS INCORPORATED SAID IT IS BEING INVESTIGATED BY THE U. S. ATTORNEY'S OFFICE FOR THE MIDDLE DISTRICT OF FLORIDA FOR SERVICES IT PROVIDED TO A FLORIDA PHARMACY THAT SUPPLIED MEDICATIONS TO HOME RESPIRATORY PATIENTS LINCARE A HOME HEALTH CARE COMPANY BASED IN CLEARWATER FLORIDA SAID IT PROVIDED VARIOUS MARKETING FIELD ADMINISTRATION AND PATIENT SERVICES TO THE PHARMACY THE CONTRACTS WITH THE PHARMACY WERE IN EFFECT FROM FEBRUARY NINETEEN EIGHTY NINE TO APRIL NINETEEN NINETY TWO AND ACCOUNTED FOR LESS THAN ONE PERCENT OF LINCARE'S REVENUE IN THAT PERIOD THE COMPANY SAID LINCARE EXECUTIVES SAID THAT THE COMPANY WAS COOPERATING WITH THE INVESTIGATION AND THAT THEY WILL SHOW THAT SERVICES WERE QUOTE PROVIDED IN ACCORDANCE WITH ALL APPLICABLE FEDERAL LAWS QUOTE FIRST FIDELITY BANCORP SAID IT WILL BUY FIRST INTER BANCORP INCORPORATED FOR FIFTY SIX MILLION DOLLARS OR TWENTY FOUR DOLLARS AND TWENTY CENTS A SHARE THE NEWS SENT FIRST INTER BANCORP SHARES UP TWO POINT EIGHT SEVEN FIVE DOLLARS OR FOURTEEN PERCENT TO TWENTY THREE POINT ONE TWO FIVE DOLLARS IN NASDAQ STOCK MARKET TRADING FIRST FIDELTY CLOSED AT FORTY THREE POINT THREE SEVEN FIVE DOLLARS DOWN THIRTY SEVEN POINT THREE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE MOVE WILL EXPAND FIRST FIDELITY'S BUSINESS IN THE HUDSON VALLEY REGION OF NEW YORK WHERE FIRST INTER BANCORP OWNS THE SIXTEEN BRANCH MID HUDSON SAVINGS BANK FIRST INTER BANCORP WITH FIVE HUNDRED TWENTY ONE MILLION DOLLARS IN ASSETS IS BASED IN FISHKILL N. Y. FIRST FIDELITY LAWRENCEVILLE N. J. HAS THIRTY THREE POINT EIGHT BILLION DOLLARS IN ASSETS AND MORE THAN SIX HUNDRED FIFTY OFFICES THE FIRMS SAID THEY EXPECT TO COMPLETE THE PURCHASE IN THE THIRD QUARTER OF NINETEEN NINETY FOUR PENDING APPROVAL BY REGULATORS AND FIRST INTER BANCORP SHAREHOLDERS LITTON INDUSTRIES INCORPORATED'S WESTERN ATLAS INCORPORATED UNIT SAID IT COMPLETED ITS PREVIOUSLY REPORTED FIVE HUNDRED FIFTY EIGHT MILLION DOLLAR PURCHASE FROM DRESSER INDUSTRIES INCORPORATED OF ALL STOCK WESTERN ATLAS DIDN'T ALREADY OWN IN AN OIL FIELD SERVICES COMPANY LITTON IN BEVERLY HILLS CALIFORNIA ALSO SAID THAT ON JANUARY FOURTEENTH WESTERN ATLAS WHICH SOON IS TO BE SPUN OFF TO LITTON SHAREHOLDERS ACQUIRED MOST OF THE OPERATING ASSETS OF HALLIBURTON COMPANY'S GEOLOGICAL SEISMIC BUSINESS FOR ABOUT ONE HUNDRED NINETY MILLION DOLLARS THE PURCHASE FROM DRESSER COMPRISED A TWENTY NINE POINT FIVE PERCENT MINORITY STAKE IN AN OIL FIELD SERVICE COMPANY THE PAYMENT WAS IN CASH AND NOTES LITTON HAS OWNED THE OTHER SEVENTY POINT FIVE PERCENT OF THE BUSINESS WHICH WILL BECOME PART OF THE NEW INDEPENDENT OPERATION INTO WHICH LITTON HAS PUT ITS NONDEFENSE HOLDINGS A SPOKESMAN FOR WESTERN ATLAS WHOSE SHARES WERE TO HAVE BEEN SPUN OFF TO LITTON SHAREHOLDERS BEFORE THE END OF NINETEEN NINETY THREE ON A ONE FOR ONE BASIS SAID THE TRANSACTION HAS BEEN DELAYED BY THE RECENT PURCHASES W. EDWARDS DEMING'S VISION ABOUT HOW COMPANIES SHOULD BE RUN HAS BEEN BOILED DOWN TO WHAT HE CALLED QUOTE FOURTEEN POINTS FOR MANAGEMENT QUOTE OUR COMPANY IN PORTLAND OREGON IS ONE CASE STUDY IN THE SUCCESS THAT COMES FROM IMPLEMENTING SOME OR ALL OF MR. DEMING'S PRINCIPLES HIS FOURTEENTH POINT THAT EVERYONE IN THE COMPANY MUST BE PUT TO WORK TO ACCOMPLISH THE FIRM'S TRANSFORMATION MEANS THERE MUST BE PERSONAL TRANSFORMATION AS WELL AND THAT DRAWS FROM MR. DEMING'S THIRTEENTH POINT THAT COMPANIES INSTITUTE A PROGRAM OF SELF IMPROVEMENT THROUGH READING BOOKS ON PERSONAL GROWTH I FELT MYSELF GROW IN MY ABILITY TO COMMUNICATE AND SAW MY EFFECTIVENESS IN BUSINESS GROW I WANTED TO SHARE THIS GROWTH WITH MY STAFF SO I ADDED A LIBRARY TO OUR LUNCHROOM THIS EVOLVED INTO WHAT WE CALL OUR LEARN AND EARN PROGRAM IN WHICH EMPLOYEES ARE PAID TO READ BOOKS LISTEN TO TAPES OR ATTEND SEMINARS AND THEN MAKE A REPORT TO ME ABOUT WHAT THEY HAVE LEARNED EMPLOYEES GET AS MUCH AS THIRTY DOLLARS EXTRA IN THEIR PAYCHECKS PER REPORT SOME BOOKS ARE MANDATORY READING SUCH AS THE POWER OF ETHICAL MANAGEMENT WHICH EVERY NEW EMPLOYEE MUST READ WITHIN THE FIRST NINETY DAYS OF EMPLOYMENT RAISES ARE OFTEN TIED TO THE EMPLOYEE'S EFFORTS AT SELF IMPROVEMENT LEARN AND EARN HAS ALSO HELPED FULFILL MR. DEMING'S FIRST RECOMMENDATION THAT COMPANIES CREATE CONSTANCY OF PURPOSE WE ARE ALL SINGING FROM THE SAME SONG SHEET NOW AS A RESULT COMMUNICATIONS HAVE IMPROVED NOT JUST WITH THE CUSTOMERS BUT WITHIN THE FIRM IMPROVING THE STAFF'S ABILITY TO COMMUNICATE HAS DRIVEN OUT FEAR HIS EIGHTH POINT BROKEN DOWN BARRIERS BETWEEN DEPARTMENTS HIS NINTH AND MADE POSSIBLE OTHER INNOVATIONS FOR EXAMPLE WE HAVE ROUND TABLE DISCUSSIONS EVERY MONTH IN WHICH ALL EMPLOYEES PARTICIPATE ANY TOPIC IS FAIR GAME FROM FINANCES TO PROBLEMS IN PRODUCTION IF WE HAD TRIED SUCH A THING BEFORE OUR COMMUNICATION SKILLS WERE IMPROVED PEOPLE COULD HAVE RETREATED INTO DEFENSIVENESS AND TURF PROTECTION AND NOTHING WOULD EVER HAVE CHANGED THE PEER REVIEW PROCESS IS ANOTHER INNOVATION MADE POSSIBLE BY IMPROVED COMMUNICATIONS IN YEARS PAST WHEN SOMEONE WANTED A RAISE HE WOULD COME BEFORE HIS MANAGER AND PRESENT HIS CASE NOW BEFORE HIS SITUATION IS EVEN REVIEWED THERE ARE CERTAIN CRITERIA TO BE MET PAY REVIEWS ARE LINKED TO GOALS MET ON THE JOB AS WELL AS THE NUMBER OF SEMINARS ATTENDED OR BOOKS READ THE EMPLOYEE FILLS OUT A FORM AND SUBMITS IT TO HIS SUPERVISOR AND ONE OR TWO PEOPLE HE WORKS CLOSELY WITH THEN THE GROUP SITS TOGETHER AND EVALUATES THE APPROPRIATENESS OF A RAISE IT PUTS THE BURDEN OF RESPONSIBILITY ON THE EMPLOYEE TO DEMONSTRATE THAT A RAISE IS WARRANTED HE DOESN'T GET IT BY DEFAULT SO THAT WE DON'T BECOME TOO HIDEBOUND IN ALL OUR PROGRAMS WE ALSO HAVE AN QUOTE EXCEPTION TO THE RULE QUOTE PROGRAM IF THERE IS A REQUEST TO BREAK WITH COMPANY RULES EVERYONE HAS TO VOTE ON IT I THINK THIS IS THE FINEST FLOWER OF MR. DEMING'S THINKING HE DIDN'T WANT TO ENSLAVE BUSINESS TO THE RULES BUT TO FREE IT TO CREATIVELY MEET CHALLENGES WHILE MAKING PROFITS MR. GORDON IS THE PRESIDENT OF IPD COMPANY A PORTLAND OREGON MANUFACTURER OF AUTOMOTIVE PARTS FRENCH SPORTING GOODS COMPANY SKIS ROSSIGNOL PARIS SAID IT EXPECTS TO REPORT CONSOLIDATED NET INCOME OF CLOSE TO ONE HUNDRED MILLION FRANCS SEVENTEEN MILLION DOLLARS FOR THE YEAR ENDING MARCH THIRTY FIRST ALMOST THREE TIMES THE YEAR EARLIER THIRTY SIX POINT SIX MILLION FRANCS THE COMPANY SAID ITS DIVIDEND QUOTE WILL REFLECT THE EXPECTED TREND IN EARNINGS QUOTE AND WILL VIRTUALLY DOUBLE IT PAID OUT A NET DIVIDEND OF TWELVE FRANCS LAST YEAR ANALYSTS SAID THE EARNINGS PROJECTION WAS BETTER THAN THEY HAD EXPECTED SKIS ROSSIGNOL SAID CONSOLIDATED REVENUE IN THE CURRENT YEAR IS EXPECTED TO RISE MORE THAN TWELVE PERCENT FROM THE ONE POINT SIX NINE BILLION FRANCS A YEAR EARLIER SKIS ROSSIGNOL SAID SALES WERE BOOSTED BY GOOD SNOWFALLS SKI BOOT SALES ARE UP TWENTY FIVE PERCENT AND THE COMPANY'S TWO BRANDS LANGE AND ROSSIGNOL TOGETHER HOLD CLOSE TO SEVENTEEN PERCENT OF THE WORLD MARKET LOOKING AHEAD SKIS ROSSIGNOL SAID IT'S CONFIDENT ABOUT THE FUTURE AS A RESULT OF NEW LINES OF SKIS BOOTS AND GOLF EQUIPMENT IMPROVED PRODUCTIVITY AND NO FOREIGN EXCHANGE EXPOSURE SALES SHOULD RISE MORE THAN TEN PERCENT THIS YEAR AND PROFIT SHOULD GROW AT AN EVEN FASTER PACE IT SAID JAPAN INCORPORATED GIVES MUCH CREDIT FOR ITS POSTWAR BOOM TO W. EDWARDS DEMING THE PIONEERING QUALITY MANAGEMENT GURU BUT HIS RECENT DEATH AT AGE NINETY THREE THE DEEP RECESSION IN JAPAN AND THE STIFF NEW PRESSURES FACING AMERICAN BUSINESS NOW SUGGEST THAT WE TAKE STOCK MUCH OF MR. DEMING'S LEGACY IS DESERVEDLY SECURE HE BELIEVED IN BUILDING QUALITY INTO PRODUCTS RATHER THAN INSPECTING FOR IT LATER IN TREATING WORKERS AS ASSETS AND IN ENGAGING THEIR MINDS AS WELL AS THEIR HANDS IN JAPAN HIS METHODS HELPED TURN MANY COMPANIES INTO RICH GLOBAL PLAYERS BUT MR. DEMING'S PHILOSOPHY ALWAYS SEEMED MORE APPLICABLE TO THE JAPANESE LOCK STEP STYLE OF MANAGEMENT HE EXUDED THE AURA OF A GURU URGED THAT HIS SYSTEM BE QUOTE ENTHRONED AS AN INSTITUTION QUOTE IN EVERY ORGANIZATION AND BROOKED NO DISSENT FROM HIS EXECUTIVE DISCIPLES SUCH AN APPROACH TENDS TO STIFLE SKEPTICAL CONTENTIOUS AND INDEPENDENT MINDED AMERICAN WORKERS FLORIDA POWER AND LIGHT FOR INSTANCE WENT FOR THE DEMING PRIZE AND WON IT IN NINETEEN EIGHTY NINE BUT THE UTILITY INFLICTED MAJOR DAMAGE ON ITS CULTURE IN THE PROCESS AND WOUND UP DISMANTLING MUCH OF ITS QUALITY PROGRAM THE REASON IT HAMPERED THOUGHT INNOVATION AND MEANINGFUL RESULTS WHILE ENCOURAGING GROUP THINK EXECUTIVE MEDDLING AND DOGMATIC FAITHFULNESS TO QUALITY PROCESSES AT THE EXPENSE OF CORPORATE PERFORMANCE ONE QUALITY TEAM DUTIFULLY APPLIED MR. DEMING'S ELABORATE SEVEN STEP DECISION MAKING PROCESS TO MOVE A WATER COOLER MR. DEMING'S SYSTEM STARTS BY COMPREHENSIVELY TRAINING EVERYONE IN THE ORGANIZATION IN HIS METHODS PERFORMANCE IMPROVEMENTS MIGHT TAKE YEARS TO HAPPEN A TROUBLED PHILADELPHIA ELECTRIC GENERATING STATION SOUGHT FAST IMPROVEMENT INSTEAD BY ESCHEWING THE DEMING APPROACH AND FORMING AUTONOMOUS TEAMS THAT HUNTED FOR SELF EVIDENT PROBLEMS TO FIX SUCH AS LEAKY VALVES AND DRAFTY FURNACES THEY GAINED CONFIDENCE NOT FROM INDOCTRINATION BUT FROM TANGIBLE SUCCESS THEY INVENTED A NUMBER OF HIGHLY CREATIVE PROCESSES THAT NO TRAINING PROGRAM COULD TEACH AND DOUBLED THE ORIGINAL SAVINGS GOAL A ONCE TRADITION BOUND AND HIERARCHAL ORGANIZATION WAS LOOSENED UP AND IS NOW MORE FLEXIBLE AND OPEN TO CHANGE COMPANIES THAT GO OVERBOARD ON DEMINGISM OFTEN SUFFER LIKE F. P. AND L. FROM TOP DOWN MEDDLING GENERAL ELECTRIC COMBATS THAT WITH WORK OUT MEETINGS DESIGNED BY CHAIRMAN JACK WELCH TO FOSTER LOCAL SOLUTIONS TO PROBLEMS WORKERS AT G. E. CONFRONT THEIR BOSSES OPENLY IN TOWN HALL MEETINGS MAKING FREEWHEELING SUGGESTIONS GETTING DECISIONS ON THE SPOT AND THEY GET RESULTS FOR EXAMPLE WHEN EMPLOYEES AT A SCHENECTADY TURBINE PLANT COMPLAINED ABOUT ITS MILLING MACHINES THEY GOT AUTHORIZATION TO TEST APPROVE AND PURCHASE TWENTY MILLION DOLLARS OF REPLACEMENTS CYCLE TIME FOR MILLING STEEL DROPPED EIGHTY PERCENT CUTTING INVENTORY COSTS AND BOOSTING CUSTOMER RESPONSIVENESS NONE OF THIS DETRACTS FROM MR. DEMING'S ACHIEVEMENTS BUT NO THEORY OR SYSTEM CAN FULLY ACCOUNT FOR SOMETHING AS COMPLEX AS A HUMAN ORGANIZATION COMPANIES LIKE G. E. APPEAR WELL POISED TO SUCCEED NOT BECAUSE OF THEIR DEVOTION TO ANY MANAGEMENT SYSTEM BUT BECAUSE THEY BUILD ON DISTINCTLY AMERICAN INSTITUTIONS MR. LEE IS HEAD OF A DALLAS BASED CONSULTING FIRM BIRD MEDICAL TECHNOLOGIES INCORPORATED PALM SPRINGS CALIFORNIA EXPECTS TO REPORT FOURTH QUARTER NET INCOME OF FIVE HUNDRED FIFTY THOUSAND DOLLARS OR EIGHT TO TEN CENTS A SHARE FELIX T. TROILO PRESIDENT AND CHIEF EXECUTIVE SAID THE RESULTS COMPARE WITH NET OF TWO HUNDRED THIRTY FOUR THOUSAND DOLLARS OR FOUR CENTS A SHARE A YEAR EARLIER SALES ROSE TO ABOUT SIXTEEN POINT FIVE MILLION DOLLARS FROM TWELVE POINT EIGHT MILLION DOLLARS MR. TROILO SAID THE MAKER OF RESPIRATORY CARE AND INFECTION CONTROL PRODUCTS FORECASTS A TWENTY PERCENT GROWTH IN SALES QUOTE AND POSSIBLY MORE QUOTE FOR NINETEEN NINETY FOUR HE SAID FOR THE YEAR THE COMPANY EXPECTS TO REPORT NET OF ONE POINT TWO MILLION DOLLARS TO ONE POINT THREE MILLION DOLLARS OR NINETEEN CENTS TO TWENTY ONE CENTS A SHARE SALES CLIMBED TWENTY PERCENT TO FIFTY TWO POINT FOUR MILLION DOLLARS FROM FORTY THREE POINT EIGHT MILLION DOLLARS BIRD MEDICAL HAD A NINETEEN NINETY TWO NET LOSS OF ONE POINT FOUR MILLION DOLLARS OR TWENTY TWO CENTS A SHARE AFTER A ONETIME PRETAX CHARGE OF ONE POINT SIX MILLION DOLLARS RELATED TO RESTRUCTURING MYERS INDUSTRIES INCORPORATED AKRON OHIO SAID IT ACQUIRED CERTAIN ASSETS AND OPERATIONS OF NORTHWEST TIRE SHOP SUPPLY COMPANY OF PORTLAND OREGON MYERS INDUSTRIES MAKES REUSABLE PLASTIC STORAGE SYSTEMS AND DISTRIBUTES EQUIPMENT AND SUPPLIES FOR THE TIRE SERVICING AND REPAIR INDUSTRIES TERMS WEREN'T DISCLOSED COLTEC INDUSTRIES INCORPORATED PINE BLUFF ARKANSAS COMPLETED THE SALE OF ITS CENTRAL MOLONEY TRANSFORMER DIVISION TO THE DIVISION'S SENIOR MANAGERS THE SALE FOLLOWS COLTEC'S STRATEGY TO FOCUS ON DIVISIONS SERVING AEROSPACE AUTOMOTIVE AND OTHER INDUSTRIAL MARKETS TERMS WEREN'T DISCLOSED HORIZON HEALTHCARE CORPORATION ALBUQUERQUE N. M. ACQUIRED THE ASSETS OF MEDICAL DIAGNOSTIC SERVICE INCORPORATED A CARDIOPULMONARY AND RADIOLOGY ULTRASOUND CONCERN SERVING NEVADA NORTHERN ARIZONA AND EASTERN CALIFORNIA TERMS WEREN'T DISCLOSED MATRIX SERVICE COMPANY TULSA OKLAHOMA SIGNED AN AGREEMENT IN PRINCIPLE TO ACQUIRE BROWN STEEL CONTRACTORS INCORPORATED NEWMAN GEORGIA THE ACQUISITION IS EXPECTED TO BE COMPLETED BY MID APRIL BANKWORCESTER CORPORATION WORCESTER MASSACHUSETTS SAID ITS SHAREHOLDERS APPROVED THE PREVIOUSLY ANNOUNCED ACQUISITION OF THE INSTITUTION BY BANK OF BOSTON CORPORATION PENDING REGULATORY APPROVAL BANK OF BOSTON AGREED IN SEPTEMBER TO ACQUIRE BANKWORCESTER FOR THIRTY FOUR DOLLARS A SHARE OR ABOUT TWO HUNDRED FORTY SEVEN MILLION DOLLARS ALCO STANDARD CORPORATION'S UNISOURCE UNIT OF VALLEY FORGE PENNSYLVANIA ACQUIRED HOPACO THE HAWAIIAN PAPER DISTRIBUTION ARM OF PAPER PRODUCT COMPANY BOISE CASCADE CORPORATION TERMS WEREN'T DISCLOSED INFOMERCIAL MARKETER NATIONAL MEDIA CORPORATION SAID ITS BOARD UNANIMOUSLY REJECTED AN UNSOLICITED ONE HUNDRED SEVENTEEN POINT FIVE MILLION DOLLAR TAKEOVER BID BY VALUEVISION INTERNATIONAL INCORPORATED A MINNEAPOLIS HOME SHOPPING NETWORK IN A STATEMENT PHILADELPHIA BASED NATIONAL MEDIA SAID ITS BOARD ADVISED BY U. B. S. SECURITIES INCORPORATED CONSIDERED THE TEN DOLLAR PER SHARE BID QUOTE FINANCIALLY INADEQUATE QUOTE IT SAID IT WILL DEVELOP A PLAN TO MAXIMIZE SHAREHOLDER VALUE THAT COULD INCLUDE THE SALE OF COMPANY ASSETS OR BUSINESSES OR THE SALE OF THE COMPANY AS A WHOLE A SPOKESMAN FOR VALUEVISION SAID THE COMPANY HAD NO RESPONSE NATIONAL MEDIA STOCK CLOSED AT ELEVEN POINT ONE TWO FIVE DOLLARS UP TWELVE POINT FIVE CENTS IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY VALUEVISION CLOSED AT TWELVE DOLLARS AND TWENTY FIVE CENTS DOWN ONE POINT THREE SEVEN FIVE DOLLARS CENTS IN NASDAQ STOCK MARKET TRADING THIS MEDICAL DIAGNOSTICS COMPANY SAID KURT E. AMUNDSON CHIEF FINANCIAL OFFICER AND SECRETARY RESIGNED TO PURSUE OTHER INTERESTS EFFECTIVE IMMEDIATELY NO SUCCESSOR WAS NAMED COLLINS AND AIKMAN GROUP INCORPORATED SAID IT SOLD ITS KAYSER ROTH CORPORATION SUBSIDIARY TO LEGWEAR ACQUISITION CORPORATION FOR ABOUT ONE HUNDRED SEVENTY MILLION DOLLARS AND A WARRANT TO PURCHASE TEN PERCENT OF THE EQUITY OF LEGWEAR WITHIN THREE YEARS COLLINS SAID THE WARRANT CAN BE REPURCHASED BY LEGWEAR FOR TEN MILLION DOLLARS ABOUT SIXTY SIX MILLION DOLLARS WAS USED TO PAY BANK DEBT OUTSTANDING OF KAYSER ROTH COLLINS SAID THE REST OF THE PROCEEDS WILL BE USED FOR GENERAL COMPANY PURPOSES INCLUDING REDEMPTION OF A PORTION OF COLLINS AND AIKMAN GROUP'S SUBORDINATED NOTES DUE NINETEEN NINETY FIVE OR OTHER DEBT LEGWEAR ACQUISITION WAS ORGANIZED BY GRUPO SYNKRO S. A. AND A GROUP OF MEXICAN INVESTORS IN NOVEMBER GROUPO SYNKRO OF MEXICO CITY IS THE LARGEST PRODUCER AND DISTRIBUTOR OF LEGWEAR IN MEXICO AND ONE OF THE TOP FIVE WORLD WIDE KAYSER ROTH GREENSBORO N. C. IS THE MAKER OF BRAND NAME AND PRIVATE LABEL WOMEN'S AND MEN'S LEGWEAR INCLUDING THE NO NONSENSE AND BURLINGTON BRANDS COLLINS AND AIKMAN MAKES AND DISTRIBUTES AUTOMOTIVE TEXTILES FABRICS COMMERCIAL FLOOR AND WALLCOVERINGS HERSHEY FOODS CORPORATION'S FOURTH QUARTER PROFIT INCREASED TWELVE PERCENT DESPITE SOFT SALES IN THE U. S. CANDY BUSINESS THE HERSHEY PENNSYLVANIA CONCERN SAID NET INCOME CLIMBED TO NINETY TWO POINT TWO MILLION DOLLARS OR ONE DOLLAR AND FOUR CENTS A SHARE FROM EIGHTY TWO POINT THREE MILLION DOLLARS OR NINETY ONE CENTS A SHARE A YEAR AGO SALES GREW SIX POINT NINE PERCENT TO ONE POINT OH FOUR BILLION DOLLARS FROM NINE HUNDRED SIXTY NINE POINT FIVE MILLION DOLLARS HERSHEY ATTRIBUTED THE SALES GAINS TO ITS STRONG PASTA BUSINESS AND CONTRIBUTIONS FROM RECENTLY ACQUIRED FOOD BUSINESSES IN EUROPE THE RESULTS WERE IN LINE WITH EXPECTATIONS AND HERSHEY STOCK CLOSED FRIDAY AT FORTY EIGHT POINT SIX TWO FIVE DOLLARS DOWN THIRTY SEVEN POINT FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DESPITE A GENERALLY BAD YEAR FOR CANDY SALES HERSHEY CHOCOLATE U. S. A. GAINED MARKET SHARE FOR THE YEAR THE PASTA GROUP GAINED MARKET SHARE AS WELL SHELL OIL COMPANY HOUSTON SAID FOURTH QUARTER NET INCOME MORE THAN DOUBLED TO ONE HUNDRED FIFTY TWO MILLION DOLLARS FROM SEVENTY ONE MILLION DOLLARS ON A SEVEN POINT NINE PERCENT DROP IN REVENUE TO FIVE POINT ONE FIVE BILLION DOLLARS FROM FIVE POINT FIVE NINE BILLION DOLLARS THE UNIT OF THE ANGLO DUTCH ROYAL DUTCH SLASH SHELL GROUP SAID COST CUTTING HELPED THE BOTTOM LINE AS WELL AS AN IMPROVED PERFORMANCE IN ITS CHEMICAL SECTOR SALES OF REFINED PRODUCTS ALSO GREW THOSE BENEFITS HOWEVER WERE PARTLY OFFSET BY SHARPLY LOWER OIL PRICES EARNINGS FROM THE EXPLORATION AND PRODUCTION SECTOR FELL THIRTY THREE MILLION DOLLARS TO ONE HUNDRED FIFTEEN MILLION DOLLARS IN THE QUARTER SPECIAL ITEMS REDUCED EARNINGS BY TWENTY EIGHT MILLION DOLLARS A YEAR EARLIER THE COMPANY HAD CHARGES OF EIGHTY EIGHT MILLION DOLLARS IN NINETEEN NINETY THREE NET WAS SEVEN HUNDRED EIGHTY ONE MILLION DOLLARS COMPARED WITH A LOSS OF ONE HUNDRED NINETY MILLION DOLLARS IN NINETEEN NINETY TWO THE NINETEEN NINETY TWO RESULTS INCLUDED CHARGES OF SIX HUNDRED THIRTY FIVE MILLION DOLLARS RELATED TO ACCOUNTING CHANGES THE COMPANY SAID REVENUE DECLINED TWO POINT EIGHT PERCENT TO TWENTY ONE POINT OH NINE BILLION DOLLARS FROM TWENTY ONE POINT SEVEN OH BILLION DOLLARS PEGASUS GOLD INCORPORATED SPOKANE WASHINGTON SAID IT AGREED TO ACQUIRE CANADA'S EL CONDOR RESOURCES LIMITED A GOLD AND COPPER CONCERN FOR FIVE DOLLARS AND SEVENTY CENTS A SHARE OR EIGHTY TWO POINT THREE MILLION DOLLARS IN PEGASUS STOCK EL CONDOR IS BASED IN VANCOUVER BRITISH COLUMBIA ITS PRINCIPAL ASSET IS A SIXTY PERCENT INTEREST IN THE KEMESS SOUTH GOLD AND COPPER DEPOSIT IN NORTH CENTRAL BRITISH COLUMBIA THE REMAINING FORTY PERCENT IS OWNED BY SAINT PHILIPS RESOURCES INCORPORATED OF VANCOUVER EL CONDOR IS THE PROJECT OPERATOR MINING AT THE SITE IS AWAITING REQUIRED PERMITS PEGASUS WHICH PRODUCES MORE THAN FOUR HUNDRED THOUSAND OUNCES OF GOLD A YEAR SAID THE ACQUISITION WOULD HELP IT REACH ITS GOAL OF INCREASING PRODUCTION TO ONE MILLION OUNCES A YEAR BY THE END OF THE DECADE THE MERGER ACCORD WAS ANNOUNCED AFTER THE STOCK MARKET CLOSED FRIDAY IN NASDAQ STOCK MARKET TRADING EL CONDOR SHARES CLOSED AT FIVE POINT ONE TWO FIVE DOLLARS UP THIRTY ONE POINT TWO FIVE CENTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING PEGASUS GOLD FELL TWENTY FIVE CENTS TO TWENTY TWO POINT THREE SEVEN FIVE DOLLARS POPLAR CORPORATION A CANADIAN INVESTMENT GROUP SAID IT SOLD ITS TWENTY FOUR PERCENT VOTING INTEREST IN CROWNX INCORPORATED FOR THIRTY SIX POINT SEVEN MILLION CANADIAN DOLLARS TWENTY SEVEN POINT NINE MILLION U. S. DOLLARS ABOUT TWO TO THREE TIMES WHAT THE GROUP PAID FOR THE SHARES THREE YEARS AGO POPLAR WHICH REPRESENTS SEVERAL CANADIAN INSURANCE COMPANIES AND OTHER INVESTORS SAID IT SOLD ITS TWO MILLION EIGHT HUNDRED TWENTY FIVE THOUSAND CROWNX COMMON SHARES AND SEVENTY THOUSAND NONVOTING CLASS A SHARES STEPHEN JOHNSON A VICE PRESIDENT AT KOLOSHUK FARRUGIA A SECURITIES DEALER AND PART OF THE POPLAR GROUP SAID THE GROUP HAD BOUGHT THE CROWNX COMMON SHARES IN TWO BLOCKS AT FOUR CANADIAN DOLLARS A SHARE AND SIX CANADIAN DOLLARS A SHARE ABOUT THREE YEARS AGO THE SHARES WERE SOLD FRIDAY FOR THIRTEEN CANADIAN DOLLARS EACH CROWNX'S REMAINING CONTROLLING SHAREHOLDERS NOW HAVE A COMBINED VOTING STAKE IN THE COMPANY OF SIXTY FIVE POINT SIX PERCENT UP FROM FIFTY POINT SEVEN PERCENT PREVIOUSLY HE SAID CROWNX WHICH HAS INTERESTS IN LIFE INSURANCE AND NURSING HOMES IS CONTROLLED BY THE BURNS FAMILY OF TORONTO AND THE JODREY FAMILY OF NOVA SCOTIA TENNECO INCORPORATED SAID ITS CHAIRMAN MICHAEL WALSH UNDERWENT SURGERY TO REMOVE DEAD TISSUE REMAINING FROM A BRAIN TUMOR DISCOVERED LAST YEAR BUT THAT HIS PROGNOSIS APPEARS FAVORABLE THE COMPANY SAID THE SURGERY PERFORMED SATURDAY IN BOSTON IS CONSIDERED STANDARD TESTS BEFORE AND AFTER THE OPERATION CONFIRM EARLIER DIAGNOSES THAT MR. WALSH APPEARS TO HAVE NO ACTIVE TUMOR LESIONS THE FIFTY ONE YEAR OLD CHAIRMAN WAS DIAGNOSED WITH A MIDGRADE BRAIN TUMOR IN JANUARY NINETEEN NINETY THREE HE UNDERWENT A TREATMENT OF RADIATION AND CHEMOTHERAPY IN NOVEMBER HE REPORTED THAT HIS DOCTORS TOLD HIM THE TUMOR HAD STOPPED GROWING AND WAS BREAKING UP MR. WALSH HAS CONTINUED HIS REGULAR DUTIES AT TENNECO A THIRTEEN BILLION DOLLAR INDUSTRIAL CORPORATION WHICH HE HAS BEEN LEADING THROUGH A RESTRUCTURING PROGRAM BLOUNT INCORPORATED SAID IT SIGNED A LETTER OF INTENT TO SELL A MAJOR PORTION OF ITS CONSTRUCTION DIVISION TO CADDELL CONSTRUCTION COMPANY OF MONTGOMERY ALABAMA TERMS WEREN'T DISCLOSED THE SALE WON'T INCLUDE BLOUNT'S POZZO CONSTRUCTION COMPANY SUBSIDIARY BUT BLOUNT ALSO BASED IN MONTGOMERY SAID IT WILL EVENTUALLY DISPOSE OF THAT OPERATION WINTON M. BLOUNT CHAIRMAN SAID THE MOVE WILL ELIMINATE SUBSTANTIAL OPERATING LOSSES BLOUNT HAS EXPERIENCED IN ITS CONSTRUCTION OPERATIONS OVER THE PAST SEVERAL YEARS HE SAID THE DECISION WILL HELP TO FOCUS THE COMPANY'S RESOURCES ON GROWING ITS MANUFACTURING BUSINESSES IN FISCAL NINETEEN NINETY THREE BLOUNT HAD NET INCOME OF SEVEN POINT TWO MILLION DOLLARS OR FIFTY NINE CENTS A SHARE ON SIX HUNDRED NINETY ONE POINT FOUR MILLION DOLLARS IN SALES JAPAN A NATION QUOTE PROPORTIONATE TO ITS HEIGHT QUOTE SEEM STRANGE HANG ON JAPAN IS LOOKING FOR A NEW NATIONAL SLOGAN IT IS AN UNOFFICIAL SEARCH OF COURSE BUT THE UNOFFICIAL OLD SLOGANS JUST WON'T WORK ANYMORE WITH JAPAN TRYING TO REINVENT ITSELF POLITICALLY AND ECONOMICALLY INCLUDING PARLIAMENT'S PASSAGE OF SWEEPING ELECTORAL REFORM OVER THE WEEKEND EVERYONE IS VYING TO BE KNOWN AS THE PERSON WHO CAME UP WITH THE SLOGAN FOR THE NEW JAPAN CONSIDER THIS JAPAN THE NORMAL NATION THAT IS THE ENTRY BY POLITICAL BOSS ICHIRO OZAWA WHAT DOES IT MEAN TO MR. OZAWA NORMAL NATIONS EAGERLY HELPED THE U. S. STOMP IRAQ PACIFIST JAPAN DIDN'T NORMAL NATIONS CONSIDER WORLD INTERESTS SUCH AS FREE TRADE JAPAN DOESN'T JAPAN IS A SINGLE LUNG COUNTRY MR. OZAWA WRITES JAPAN IS FAR FROM A NORMAL COUNTRY SOME BRAND MR. OZAWA'S CALL FOR NORMALCY DANGEROUS OTHERS FIND IT FUNNY WHICH NATION DOES HE THINK IS NORMAL SOMALIA IRAQ CRACKS BEAT TAKESHI AN ACTOR SLASH COMEDIAN TURNED POLITICAL CRITIC IN A RECENT MAGAZINE ARTICLE THE JAPANESE OF COURSE AREN'T ALONE IN CONJURING UP HOKEY POLITICAL MANTRAS GERALD FORD TRIED TO CRAFT ECONOMIC POLICY AROUND HIS QUOTE WHIP INFLATION NOW QUOTE CAMPAIGN CHINA IS PRECARIOUSLY BALANCING COMMUNISM AND CAPITALISM WITH ITS ONE NATION TWO SYSTEMS SAYING SLOGANS HAVE ALWAYS BEEN POPULAR HERE WHEN JAPAN BEGAN TO MODERNIZE MORE THAN A CENTURY AGO IT TURNED TO INSPIRATIONAL MAXIMS TO DEFINE ITS PATH REVERE THE EMPEROR EXPEL THE BARBARIANS I. E. FOREIGNERS WAS A POPULAR RALLYING CRY IN THE MID NINETEENTH CENTURY IT WAS SUPERSEDED BY THE MORE PHLEGMATIC WESTERN LEARNING JAPANESE SPIRIT THE SLOGANEERING REACHED A PEAK OF SORTS IN THE NINETEEN THIRTIES WHEN THE JAPANESE MILITARY RAVAGED ASIA UNDER THE BANNER OF CO EXISTENCE CO PROSPERITY A GENERATION OF HOLLYWOOD WAR MOVIES TELEGRAPHED THIS INTO THE SIMPLER BANZAI SHORTLY AFTER THE WAR A CHASTENED NATION ADOPTED MOTTOES THAT SET ITS BASIC COURSE QUOTE CATCH UP AND SURPASS QUOTE THE WEST AND QUOTE DOUBLE YOUR INCOME QUOTE THE BASIC POINT JAPAN WOULD FOCUS ON ECONOMIC DEVELOPMENT AT HOME AND LEAVE MESSY FOREIGN POLICY MATTERS TO UNCLE SAM LACKING A BETTER IDEA THE NATION'S LEADERS TRIED TO TWEAK THAT BASIC NOTION INTO THE NINETEEN EIGHTIES THE HOMETOWN CONCEPT TO WARD A HUMANISTIC AND PROSPEROUS JAPAN WAS ONE PRIME MINISTER'S VISION AN IMPASSIONED PLEA FOR A MORE GEOGRAPHICALLY BALANCED PORK BARREL IN THE EARLY NINETEEN NINETIES ANOTHER PREMIER OFFERED THE LIFESTYLE SUPERPOWER MANIFESTO THAT FORMULA HOWEVER DOESN'T WORK ANYMORE THE ECONOMY HAS MATURED THE PEOPLE WANT MORE OUT OF LIFE AND THE WORLD ESPECIALLY THE U. S. WILL NO LONGER TOLERATE JAPANESE FREE RIDING JAPAN NO LONGER HAS A WORKING SLOGAN AND THAT SOME SAY IS A CRISIS THE HYPERBOLE IS FLYING JAPAN A NATION LACKING A PHILOSOPHY COULD FACE A DOWNFALL COMPARABLE TO THE ECLIPSE OF THE ANCIENT CITY OF CARTHAGE YASUHIKO SHIBATA A SENIOR FELLOW AT THE YOMIURI RESEARCH INSTITUTE WARNS IN AN ESSAY THE SPECIAL INTEREST GROUPS NOT SURPRISINGLY ARE TRYING TO FILL THE VISION VACUUM AIR SUN WATER RICE DECLARES A BANNER HANGING FROM THE HEADQUARTERS OF JAPAN'S AGRICULTURAL LOBBY WHICH RECENTLY LOST THE FIGHT TO KEEP JAPAN'S IMPORT BAN ON RICE KEIDANREN THE BIG BUSINESS LOBBY ENDORSES SYMBIOSIS A GENTLER VERSION OF CO EXISTENCE SLASH CO PROSPERITY WITH THE WORLD BUT NOW THE MAINSTREAM POLITICIANS ARE COMING TO THE RHETORICAL FORE A RECENT ISSUE OF VIEWS MAGAZINE PUT IT BEST FOR THIS FAD MAD NATION DECLARING NINETEEN NINETY FOUR THE YEAR OF THE QUOTE BOOM QUOTE IN QUOTE TREATISES OF NATIONAL IDENTITY QUOTE THAT GRATES ON SERIOUS POLITICAL JOURNALISTS THE JAPANESE ARE DESPERATE IN THE NEED TO SEARCH FOR AN IDENTITY SAYS MASAHIKO ISHIZUKA AN EDITORIAL WRITER AT THE TOKYO DAILY NIHON KEIZAI SHIMBUN BUT IT'S VERY DIFFICULT AND DANGEROUS TO DESCRIBE THE COUNTRY IN THAT KIND OF ABSTRACT MOODY WAY I'M NOT FOR ANY SLOGAN THE NATION'S FUTURE IS TOO COMPLICATED A MATTER TO BE DESCRIBED THAT WAY KIICHI MIYAZAWA THE LAST LEADER OF JAPAN'S POST WAR OLD STYLE GOVERNMENT WHO WAS DEPOSED BY THE NEW WAVE LAST YEAR SAYS THE COMPETITION TERRIFIES HIM SURE JAPAN HAS HAD SLOGANS BEFORE BUT THIS OPEN COMPETITION BETWEEN INDIVIDUAL POLS IS UNSEEMLY IN A NATION OF SELF EFFACE MENT QUOTE THIS IS NOT THE JAPAN AS I KNOW IT QUOTE HE SAYS IT'S AS THOUGH THEY ARE FROM OTHER COUNTRIES THOSE SENTIMENTS ARE NOT STOPPING THE SUGGESTIONS HOW ABOUT A SMALL BUT SHINING NATION THAT'S THE TITLE OF A BOOK RELEASED LAST WEEK BY CABINET SPOKESMAN MASAYOSHI TAKEMURA LET'S GIVE UP THE AUDACIOUS IDEA THAT JAPAN WILL BECOME THE SUN OF THE WORLD HE WRITES AND BECOME A STAR THAT TWINKLES IN THE NIGHT SKY OF THE WORLD PRIME MINISTER MORIHIRO HOSOKAWA FOR HIS PART INVOKES A JAPANESE IDIOM THAT TRANSLATES ROUGHLY INTO EITHER A COUNTRY OF QUALITY AND SUBSTANCE OR A COUNTRY OF UNPRETENTIOUS EXCELLENCE THAT MEANS WE SHOULD GET RID OF FRILLS AS MUCH AS POSSIBLE WITH A CULTURAL LIFESTYLE AND BEAUTIFUL NATURE ACCORDING TO THE VIEWS SUMMARY BUT PERHAPS THE IDEAS OF FORMER FINANCE MINISTER RYUTARO HASHIMOTO MEASURE UP BEST HE HAS TAKEN HIS VISION TO BOOK LENGTH IN A VOLUME TITLED QUOTE VISION OF JAPAN QUOTE JAPAN'S ACTIONS SHOULD BE PROPORTIONATE TO ITS HEIGHT HE DECLARES IN OTHER WORDS THERE ARE SOME THINGS JAPAN CAN'T DO WELL AND OTHERS IT CAN TALL PEOPLE ARE GOOD AT CLEANING CHIMNEYS HE EXPLAINS IN AN INTERVIEW BUT SHORTER PEOPLE ARE BETTER AT CLEANING SEWERS ETHYL CORPORATION SAID FOURTH QUARTER NET INCOME SLUMPED NINETY ONE PERCENT MAINLY BECAUSE OF THE EFFECTS OF SPINNING OFF INSURANCE BUSINESSES THE RICHMOND VIRGINIA COMPANY SAID OPERATING EARNINGS FROM CONTINUING OPERATIONS ROSE FOUR POINT THREE PERCENT AMID IMPROVED RESULTS IN ITS CHEMICALS AND PETROLEUM ADDITIVES BUSINESSES FOURTH QUARTER NET INCOME FELL TO SEVEN POINT NINE MILLION DOLLARS OR SEVEN CENTS A SHARE FROM EIGHTY THREE POINT FOUR MILLION DOLLARS OR SEVENTY CENTS A SHARE THE NINETEEN NINETY THREE QUARTER INCLUDED A TEN MILLION DOLLAR CHARGE FOR DOWNSIZING OPERATIONS AND RETIREMENT OF DEBT THE YEAR EARLIER QUARTER INCLUDED FORTY TWO MILLION DOLLARS IN OPERATING EARNINGS FROM DISCONTINUED INSURANCE BUSINESSES AND A GAIN OF TWENTY FOUR POINT TWO MILLION DOLLARS OR TWENTY CENTS A SHARE ON THE SALE OF A TWENTY PERCENT INVESTMENT IN FIRST COLONY CORPORATION A LIFE INSURER SPUN OFF IN NINETEEN NINETY THREE PORSCHE A. G. SAID SHAREHOLDERS APPROVED A CAPITAL INCREASE THAT BASED ON ITS RECENT SHARE PRICE COULD RAISE ABOUT TWO HUNDRED SIXTY EIGHT POINT EIGHT MILLION MARKS ONE HUNDRED FIFTY FIVE POINT THREE MILLION DOLLARS FOR THE GERMAN CAR MAKER AT A GENERAL SHAREHOLDERS MEETING PORSCHE CHAIRMAN WENDELIN WIEDEKING ALSO REPORTED THAT GROUP SALES FOR THE FISCAL FIRST HALF THAT BEGAN AUGUST FIRST WERE UP TEN PERCENT TO ABOUT NINE HUNDRED TWENTY MILLION MARKS BUT THE CHAIRMAN SAID THE TEN PERCENT INCREASE WILL QUOTE BY NO MEANS QUOTE BE MATCHED BY AN INCREASE IN PROFIT PORSCHE BASED IN STUTTGART REPORTED THIS MONTH THAT THE SIX MONTH LOSS WAS ONE HUNDRED FIFTEEN MILLION MARKS NARROWER THAN THE YEAREARLIER PERIOD'S ONE HUNDRED TWENTY MILLION MARK LOSS MR. WIEDEKING REPEATED THE PROGNOSIS FOR A ONE HUNDRED FORTY MILLION MARK TO ONE HUNDRED FIFTY MILLION MARK LOSS IN THE CURRENT YEAR ON SALES OF OVER TWO BILLION MARKS HE SAID THE COMPANY SHOULD RETURN TO PROFIT NEXT YEAR BANKAMERICA OFFERED TO BUY CONTINENTAL BANK FOR ONE POINT NINE BILLION DOLLARS A DEAL THAT SUGGESTS A SHIFT IN CORPORATE BANKING FROM A FOCUS ON LENDING TO A WIDE RANGE OF TECHNOLOGY BASED SERVICES BANKAMERICA IS SEEKING CONTINENTAL'S TWO THOUSAND CORPORATE CUSTOMERS AS IT TRIES TO FASHION AN EXPANDED BANKING RELATIONSHIP IN WHICH THE BANK PERFORMS DOZENS OF ELECTRONIC FINANCIAL FUNCTIONS FOR CORPORATIONS ECONOMIC GROWTH SHOT UP AT AN ANNUAL RATE OF FIVE POINT NINE PERCENT IN THE FOURTH QUARTER OF NINETEEN NINETY THREE WHILE INFLATION STAYED WELL IN CHECK THE EXTREMELY STRONG PERFORMANCE HAS BOOSTED ANALYSTS' EXPECTATIONS ABOUT THE FIRST HALF OF THIS YEAR THE DOW JONES INDUSTRIALS ROSE NINETEEN POINT ONE THREE TO THREE THOUSAND NINE HUNDRED FORTY FIVE POINT FOUR THREE ITS SECOND HIGH IN A ROW AFTER THE UPBEAT ECONOMIC NEWS AN ACCORD TO CUT GLOBAL ALUMINUM OUTPUT BY UP TO TWO MILLION METRIC TONS WAS SET BY MAJOR PRODUCING NATIONS MOSCOW COMMITTED TO CURBING ITS ANNUAL OUTPUT BY FIVE HUNDRED THOUSAND TONS WHILE THE U. S. AND E. U. AGREED NOT TO TAKE TRADE ACTIONS AGAINST RUSSIAN PRODUCERS AUTO MAKERS WILL LIKELY PHASE OUT CASH BACK REBATES AS A MARKETING TOOL THIS YEAR INDUSTRY EXECUTIVES AND DEALERS SAY AS DEMAND RISES AND LEASING PROMOTIONS GROW MORE POPULAR AETNA PLANS TO TAKE A ONE POINT TWO EIGHT BILLION DOLLAR FOURTH QUARTER CHARGE FOR A RESTRUCTURING PLAN WHICH CALLS FOR CUTTING FOUR THOUSAND JOBS OR NEARLY TEN PERCENT OF ITS FORCE SAUDI ARABIA AGREED TO RESTRUCTURE NINE POINT TWO BILLION DOLLARS IN PAYMENTS TO FIVE MAJOR U. S. DEFENSE CONTRACTORS CLEARING THE WAY FOR A MAJOR AIRCRAFT PURCHASE G. E.'S FINANCE ARM AND FINANCIER GEORGE SOROS ARE JOINTLY FORMING A MULTIBILLION DOLLAR FUND TO DEVELOP POWER FACILITIES IN EMERGING NATIONS TOKYO STOCKS SOARED FIVE PERCENT MONDAY TO CLOSE THE MORNING SESSION AT NINETEEN THOUSAND SEVEN HUNDRED TWENTY TWO POINT FIVE SEVEN UP NINE HUNDRED SIXTY FOUR POINT SIX NINE AS INVESTORS REACTED TO HOSOKAWA'S VICTORY FOR POLITICAL REFORM CONTINENTAL AIRLINES IS EXPECTED TO EXPAND ITS LOW FARE CALITE SERVICE TO ABOUT EIGHT HUNDRED SEVENTY FIVE DAILY FLIGHTS FROM THREE HUNDRED Q. V. C.'S BOARD PLANS TO MEET TO DECIDE WHAT STEPS IT SHOULD TAKE BEFORE TOMORROW'S DEADLINE IN THE PARAMOUNT BIDDING WAR AFTER ALREADY HAVING ARRANGED TO OBTAIN EXTRA FINANCING JAPAN RAISED THE IDEA OF JOINING SEMATECH THE U. S. TECHNOLOGY CONSORTIUM FORMED IN THE NINETEEN EIGHTIES TO COUNTER JAPAN'S DOMINANCE IN COMPUTER CHIPS SHORT INTEREST ON THE NASDAQ STOCK MARKET JUMPED ONE POINT FIVE PERCENT IN MID JANUARY TO THE TWELFTH CONSECUTIVE MONTHLY RECORD INVESTORS WON'T HAVE ANY SAY IN SETTING THE RESIDUAL VALUE OF THEIR PRUDENTIAL SECURITIES LIMITED PARTNERSHIPS WHEN TRYING TO TAP INTO A REPARATIONS FUND SET UP BY THE BROKERAGE FIRM TOP SPECTRUM OFFICIALS SOLD MOST OF THEIR STOCK SHORTLY AFTER HIRING JOHN SCULLEY AS CHAIRMAN IN MID OCTOBER SAVING THEMSELVES FROM A BIG DROP IN THE STOCK THAT OCCURRED AFTER AN S. E. C. PROBE BECAME KNOWN LAST WEEK MOBIL SAID LUCIO NOTO WILL TAKE THE CHIEF EXECUTIVE'S POST WHEN ALLEN MURRAY RETIRES AT THE END OF FEBRUARY TEXAS INSTRUMENTS REPORTED A SEVENTY TWO PERCENT JUMP IN FOURTH QUARTER EARNINGS AMID A CONTINUING SURGE IN ITS SEMICONDUCTOR BUSINESS BUT SAID IT WILL ELIMINATE SEVEN HUNDRED JOBS IN OTHER OPERATIONS R. H. MACY SAID IT WILL CUT STAFF AT ITS SAN FRANCISCO BASED MACY'S WEST UNIT BY SEVEN HUNDRED POSITIONS OR ABOUT THREE POINT FIVE PERCENT BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND SIX HUNDRED FIFTY SIX POINT OH THREE UP TWENTY NINE POINT TWO SIX COMMODITIES OIL FIFTEEN DOLLARS AND THIRTY FOUR CENTS A BARREL OFF EIGHT CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY ONE POINT FIVE SIX UP ZERO POINT ZERO FIVE SPOT INDEX ONE HUNDRED TWENTY NINE POINT FIVE SEVEN OFF ZERO POINT ONE FOUR DOLLAR ONE HUNDRED TEN POINT OH OH YEN UP ONE POINT FOUR FIVE ONE POINT SEVEN FOUR TWO FIVE MARKS UP ZERO POINT ZERO ONE THREE FILMMAKERS FROM EUROPEAN UNION COUNTRIES URGED A TRANSITIONAL PERIOD OF GRADUALLY LOWERED SUBSIDIES THAT SHIELD THEM FROM HOLLYWOOD COMPETITION THE APPEAL IN A BRUSSELS CONFERENCE LAST WEEK ON FILMMAKING IN EUROPE CAME AS THE E. U.'S TOP CULTURAL OFFICIAL SAID THE MOVIE MAKERS SHOULD TAKE A MORE COMMERCIAL APPROACH IF THEY WANT TO COMPETE WITH THE U. S. INDUSTRY AND ITS BLOCKBUSTER MOVIES SOME FILMMAKERS CONDEMNED THE SUBSIDIES SAYING THEY FOSTERED LOW RISK APPROACHES AND MEDIOCRE PRODUCTS THAT CHEATED AUDIENCES QUOTE EUROPEAN FILM PRODUCERS SEEM TO FIND IT DIFFICULT TO RECONCILE ART AND MONEY QUOTE SAID THE CULTURAL CHIEF E. U. COMMISSIONER JOAO DE DEUS PINHEIRO AUDIO VISUAL PRODUCTS WERE EXEMPTED FROM THE WORLD TRADE LIBERALIZATION ACCORD UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE TO THE DISMAY OF HOLLYWOOD THE CONFERENCE CAME AS THE E. U. PREPARES A POLICY ON THE FILM AND T. V. SECTORS WHICH HAVE GOVERNMENT HELP AND PROTECTION A SOURCE OF CONFLICT WITH THE U. S. TAIWAN UNVEILED PLANS TO RELAX CONTROL OF THE TELEVISION SECTOR BY ALLOWING A PRIVATE NETWORK THROUGH COMPETITIVE BIDDING THE GOVERNMENT ALSO WILL RELEASE TWENTY NINE F. M. RADIO CHANNELS IN ADDITION TO THIRTEEN IT LICENSED LAST MONTH THE MOVES TO FREE BROADCASTING ARE IN LINE WITH PRESIDENT LEE TENG HUI'S DRIVE TO BROADEN DEMOCRACY IN TAIWAN THEY RESPOND TO COMPLAINTS BY THE POLITICAL OPPOSITION THAT IT IS DENIED ACCESS TO THE AIRWAVES THE NEW T. V. STATION MAY START OPERATING IN NINETEEN NINETY SIX TAIWAN HAS THREE T. V. NETWORKS ONE EACH RUN BY THE RULING NATIONALIST PARTY THE TAIWAN PROVINCIAL GOVERNMENT AND THE MILITARY CRIME IN MOSCOW INCREASED AT A SLOWER PACE LAST YEAR BUT THE NUMBER OF VIOLENT CRIMES IN THE RUSSIAN CAPITAL GREW SIGNIFICANTLY NEWS AGENCIES IN THE REPUBLIC SAID REPORTED CRIMES INCREASED FOUR PERCENT TO EIGHTY TWO THOUSAND FIVE HUNDRED FIFTY SIX FROM A YEAR EARLIER WHEN THE ANNUAL GROWTH PACE WAS FIVE TIMES GREATER BUT THE NUMBER OF MURDERS SOARED FIFTY THREE PERCENT AND ROBBERIES JUMPED THIRTY PERCENT POLICE NOTED DECLINES IN PROPERTY THEFTS AND A SLOWING OF ILLICIT DRUG AND WEAPONS TRAFFICKING IN WHAT WOULD BE COLOMBIA'S BIGGEST PRIVATIZATION THE GOVERNMENT PLANS TO SELL ITS SHARE OF A COMPANY THAT RUNS THE WORLD'S LARGEST OPEN PIT COAL MINE COLOMBIA HOPES TO RAISE MORE THAN ONE BILLION DOLLARS FOR ITS FIFTY PERCENT STAKE IN CARBONES DE COLOMBIA KNOWN AS CARBOCOL THE OTHER FIFTY PERCENT IS OWNED BY THE INTERCOR AFFILIATE OF EXXON CORPORATION A U. S. ENERGY COMPANY COLOMBIA MENTIONED EXXON AS A POTENTIAL BUYER FOR THE STAKE BUT SAID OTHER COMPANIES WORLD WIDE HAVE EXPRESSED INTEREST IN A TIFF OVER POWER THE EUROPEAN UNION COMMISSION AND NATIONAL GOVERNMENTS ARE WRESTLING OVER WHO SHOULD SIGN THE LIBERALIZED WORLD TRADE ACCORD IN APRIL THE ARGUMENT INVOLVES E. U. CONTROL IN MATTERS AT THE NEW WORLD TRADE ORGANIZATION TO REPLACE THE GENERAL AGREEMENT ON TARIFFS AND TRADE ONE E. U. FACTION FAVORS THE COMMISSION WHICH REPRESENTS THE TWELVE MEMBERS OF THE FORMER EUROPEAN COMMUNITY ON BROAD ISSUES SUCH AS TARIFFS MOST OF THE E. U. STATES ALL ARE ALSO G. A. T. T. MEMBERS WITH APPROVAL AUTHORITY WANT CONTINUED SHARED RESPONSIBILITY BUT THE E. U. CHARTER DOESN'T COVER SOME W. T. O. ISSUES SUCH AS THE ENVIRONMENT AND TRADE IN SERVICES STEFAN KAWALEC A TOP OFFICIAL AT POLAND'S FINANCE MINISTRY WAS FIRED FRIDAY APPARENTLY FOR HIS ROLE IN UNDERPRICING THE PUBLIC OFFERING OF A STATE BANK WHILE THE GOVERNMENT PRESS OFFICE DIDN'T SPECIFY REASONS FOR THE DISMISSAL MR. KAWALEC HAD BEEN CRITICIZED LAST WEEK FOR SETTING THE ISSUE PRICE OF BANK SLASKI S. A. SHARES TOO LOW ESSENTIALLY SHORTING THE STATE TREASURY OF NEARLY FIVE HUNDRED NINETY EIGHT MILLION DOLLARS IN DECEMBER THE ISSUE PRICE OF THE SHARES WAS SET AT ABOUT TWENTY THREE DOLLARS AT THEIR STOCK MARKET DEBUT LAST TUESDAY THE PRICE REACHED THREE HUNDRED TEN DOLLARS BUSINESS AND INDUSTRY IN BRAZIL ARE AMONG THE MOST HIGHLY TAXED IN THE WORLD INHIBITING ECONOMIC GROWTH AND EFFICIENCY A SURVEY BY AN AUDITING FIRM FOUND THE EXCESSIVE LEVIES ON PRODUCERS HURT PRODUCTIVITY ERNST AND YOUNG SAID FOR EXAMPLE BRAZILIAN PRODUCERS PAY FORTY SIX PERCENT IN TAXES ON CARS COMPARED WITH EIGHT POINT THREE PERCENT IN THE U. S. FOUR POINT FIVE PERCENT IN JAPAN AND NINETEEN PERCENT IN FRANCE THE COUNTRY ALSO LED IN OTHER CATEGORIES GLOBALLY WITH OUTPUT LEVIES OF FORTY ONE PERCENT ON TELEVISION SETS TWENTY ONE PERCENT EACH ON ORANGE JUICE AND SHOES AND TWENTY FIVE PERCENT ON CEMENT BRAZIL'S CONGRESS LAST WEEK PASSED NEW TAXES TO HELP REDUCE A TWENTY TWO BILLION DOLLAR BUDGET DEFICIT BECAUSE TAX DODGING IS A BIG PROBLEM IN BRAZIL THE STUDY'S AUTHORS SAID THE GOVERNMENT SHOULD CRACK DOWN ON TAX CHEATS AND WIDEN THE TAX BASE RATHER THAN COLLECT MORE TAX REVENUE FROM THOSE ALREADY PAYING THEIR LEGITIMATE SHARE COAL MINERS IN ROMANIA ENDED A WEEKLONG STRIKE OVER BACK PAY COMPLYING WITH A FRIDAY COURT ORDER TO RETURN TO WORK FOR AT LEAST THIRTY DAYS AFTER WHICH UNIONS VOWED TO RESUME THE WALKOUT THAT THREATENED ELECTRICITY SUPPLIES FROM COAL FIRED PLANTS ABOUT ONE THOUSAND GOVERNMENT APPROVED VIDEO SHOPS OPENED IN IRAN LAST WEEK THE FIRST LEGAL RENTAL SERVICE SINCE VIDEO RECORDINGS WERE BANNED SOON AFTER THE NINETEEN SEVENTY NINE ISLAMIC REVOLUTION VIDEOS ARE SCREENED FOR ISLAMIC MORAL VIOLATIONS SUCH AS DISPLAYS OF PHYSICAL CONTACT BETWEEN MEN AND WOMEN THE FEDERAL TRIAL OF PHAR MOR INCORPORATED CO FOUNDER AND FORMER PRESIDENT MICHAEL I. MONUS HAS BEEN CONTINUED AT HIS REQUEST SAID JAMES V. MORONEY ASSISTANT U. S. ATTORNEY THE TRIAL WAS SCHEDULED TO START FEBRUARY FOURTEENTH IN FEDERAL COURT IN CLEVELAND MR. MONUS PETITIONED TO PUT OFF THE TRIAL CITING DIFFICULTIES GETTING ACCESS TO PHAR MOR RECORDS AND WITNESSES AND TIME NEEDED TO REVIEW THE RECENT RELEASE OF A REPORT WRITTEN BY A COURT APPOINTED EXAMINER DESPITE OPPOSITION FROM THE U. S. ATTORNEY'S OFFICE JUDGE GEORGE WHITE GRANTED MR. MONUS'S MOTION AND SAID HE WILL SET A NEW TRIAL DATE AT A MARCH SECOND HEARING PROSECUTORS EXPECT THE TRIAL TO BEGIN IN LATE MARCH OR EARLY APRIL MR. MONUS WAS INDICTED ON ONE HUNDRED TWENTY NINE FEDERAL COUNTS FOR AN ALLEGED FIVE HUNDRED MILLION DOLLARS FRAUD OF THE DEEP DISCOUNT RETAILER AND FOR EMBEZZLING FIFTEEN MILLION DOLLARS FROM THE COMPANY PHAR MOR BASED IN YOUNGSTOWN OHIO FILED FOR CHAPTER ELEVEN BANKRUPTCY PROTECTION IN AUGUST NINETEEN NINETY TWO TWO OTHER FORMER PHAR MOR EXECUTIVES HAVE PLEADED GUILTY TO FEDERAL CHARGES AND ARE COOPERATING WITH THE U. S. ATTORNEY F. M. C. CORPORATION AND HARSCO CORPORATION COMPLETED THE FORMATION OF A JOINT VENTURE WHICH COMBINES THEIR DEFENSE OPERATIONS THE VENTURE KNOWN AS UNITED DEFENSE L. P. EXPECTS TO RECORD NINETEEN NINETY FOUR SALES OF ABOUT ONE BILLION DOLLARS F. M. C. WHICH RECEIVED A SIXTY PERCENT STAKE IN EXCHANGE FOR ITS DEFENSE SYSTEMS GROUP WILL MANAGE THE OPERATION HARSCO BASED IN HARRISBURG PENNSYLVANIA CONTRIBUTED ITS B. M. Y. COMBAT SYSTEMS DIVISION FOR A FORTY PERCENT HOLDING UNITED DEFENSE WITH ABOUT SIX THOUSAND EMPLOYEES IS BASED IN ARLINGTON VIRGINIA THE COMPANIES INITIALLY AGREED TO THE COMBINATION THE LATEST IN A SERIES OF CONSOLIDATION MOVES IN THE DEFENSE INDUS TRY IN DECEMBER NINETEEN NINETY TWO COMBINING F. M. C.'S TECHNICAL AND SYS TEMS CAPABILITIES WITH THE HARSCO UNIT'S LOW COST AND FLEXIBLE MANUFACTURING ABILITY F. M. C. SAID QUOTE WILL ALLOW BOTH COMPANIES TO MAINTAIN PROFITABLE OPERATIONS IN THE SHRINKING DEFENSE MARKET QUOTE UNITED DEFENSE WILL MANUFACTURE SUCH EQUIPMENT AS THE BRADLEY FIGHTING VEHICLE THE M. ONE OH NINE PALADIN SELF PROPELLED HOWITZER AN ARMORED COMBAT EARTHMOVER AND OTHER ARMORED VEHICLES OTHER PRODUCTS INCLUDE NAVAL GUNS AND LAUNCHING SYSTEMS F. M. C. ALSO HAS INTERESTS IN CHEMICALS PRECIOUS METALS AND MACHINERY HARSCO RETAINED ITS MUCH LARGER DIVISION THAT MAKES TRUCKS FOR THE U. S. ARMY ALONG WITH OTHER DIVERSIFIED MANUFACTURING OPERATIONS PLACER DOME CANADA LIMITED SAID IT APPROVED PLANS TO EXPAND TWO OF ITS ONTARIO GOLD MINES AT A COST OF ABOUT ONE HUNDRED SIXTY MILLION CANADIAN DOLLARS ONE HUNDRED TWENTY POINT EIGHT MILLION U. S. DOLLARS PLACER A VANCOUVER BRITISH COLUMBIABASED GOLD MINING CONCERN SAID IT WILL EXPAND ITS OPEN PIT MINING OPERATIONS AT THE DOME MINE IN TIMMINS ONTARIO TO INCREASE ANNUAL GOLD PRODUCTION ABOUT SIXTY EIGHT PERCENT TO THREE HUNDRED FIFTEEN THOUSAND OUNCES FROM THE CURRENT ONE HUNDRED EIGHTY SEVEN THOUSAND OUNCES THE ONE HUNDRED FIFTY MILLION CANADIAN DOLLAR EXPANSION IS TO CUT CASH PRODUCTION COSTS TO ABOUT TWO HUNDRED TEN U. S. DOLLARS AN OUNCE FROM TWO HUNDRED TWENTY SEVEN U. S. DOLLARS IN NINETEEN NINETY THREE CONSTRUCTION IS EXPECTED TO BEGIN IN APRIL PLACER ALSO PLANS TO INSTALL AN UNDERGROUND CONVEYOR AND CRUSHING SYSTEM AT THE DETOUR LAKE MINE ONE HUNDRED EIGHTY FIVE MILES NORTH OF TIMMINS FOR TEN MILLION CANADIAN DOLLARS THE SYSTEM WILL ALLOW FURTHER ACCESS TO ORE AND EXTEND THE MINE'S LIFE TO THE YEAR TWO THOUSAND AND POSSIBLY BEYOND AVERAGE CASH PRODUCTION COSTS WILL BE CUT TO TWO HUNDRED FORTY DOLLARS AN OUNCE FROM TWO HUNDRED FIFTY DOLLARS IN NINETEEN NINETY THREE ON COMPLETION OF THE NINE MONTH PROJECT CANADIAN PACIFIC FOREST PRODUCTS LIMITED MONTREAL SAID IT FORMED A COMPANY FROM ITS PAPERBOARD GROUP AND MAY ISSUE STOCK IN THE UNIT IF WORKERS AGREE TO COST CUTTING MEASURES NEEDED TO ATTRACT CAPITAL THE NEW COMPANY SAINT LAURENT PAPERBOARD INCORPORATED WILL OPERATE FACILITIES IN QUEBEC AND ONTARIO WITH ONE THOUSAND FOUR HUNDRED EMPLOYEES AND ANNUAL SALES OF ABOUT THREE HUNDRED EIGHT MILLION CANADIAN DOLLARS TWO HUNDRED THIRTY FOUR POINT THREE MILLION U. S. DOLLARS C. P. FOREST'S PAPERBOARD GROUP HAD AN OPERATING LOSS OF ELEVEN MILLION CANADIAN DOLLARS LAST YEAR BUT RECENT PRICE INCREASES FOR LINERBOARD USED IN CORRUGATED BOXES HAVE IMPROVED THE OUTLOOK SEPARATELY C. P. FOREST SAID IT HAD A LOSS OF TWO HUNDRED EIGHTY FIVE POINT SIX MILLION CANADIAN DOLLARS OR FOUR CANADIAN DOLLARS AND EIGHTY EIGHT CENTS A SHARE IN NINETEEN NINETY THREE COMPARED WITH A LOSS OF TWO HUNDRED FORTY EIGHT MILLION CANADIAN DOLLARS OR FOUR CANADIAN DOLLARS AND EIGHTY TWO CENTS A SHARE IN NINETEEN NINETY TWO SALES WERE FLAT AT ONE POINT EIGHT THREE BILLION CANADIAN DOLLARS DAVID TOOLE CHIEF FINANCIAL OFFICER SAID THE COMPANY EXPECTS A MUCH NARROWER LOSS IN NINETEEN NINETY FOUR JAPANESE STOCKS ROCKETED FIVE PERCENT IN MORNING TRADING MONDAY IN TOKYO AS INVESTORS GAVE A BIG VOTE OF CONFIDENCE TO JAPAN'S GOVERNMENT AFTER ITS WEEKEND POLITICAL REFORM VICTORY THE NIKKEI STOCK AVERAGE STOOD AT NINETEEN THOUSAND SEVEN HUNDRED TWENTY TWO POINT FIVE SEVEN UP NINE HUNDRED SIXTY FOUR POINT SIX NINE POINTS AT THE END OF THE MORNING SESSION MANY STOCKS WERE DELAYED IN OPENING BECAUSE THE MARKET WAS SWAMPED WITH BUY ORDERS AS IN RECENT SESSIONS FOREIGN BUYING LED THE MARKET TRADERS SAID JAPANESE FINANCIAL INSTITUTIONS AND RETAIL INVESTORS WERE ALSO BUYING THEY SAID AND JAPANESE BROKERAGE HOUSES WERE LOADING UP ON STOCKS IN ANTICIPATION OF SELLING EVEN MORE SHARES TO THEIR CLIENTS THERE HAD BEEN DOUBTS LAST WEEK THAT JAPAN'S RULERS COULD COBBLE A REFORM BILL THAT WOULD PASS THE NATIONAL PARLIAMENT AND THOSE DOUBTS HAD PROVED A DRAG ON THE NIKKEI INDEX WHICH HAS HAD A STRONG NINETEEN NINETY FOUR SO FAR WITH POLITICAL REFORM PROVISIONALLY PASSED THE GOVERNMENT IS EXPECTED TO DRAFT AN ECONOMIC STIMULUS PACKAGE ESTIMATED AT MORE THAN ONE HUNDRED TWENTY BILLION DOLLARS LATER THIS WEEK INVESTORS HOPE THE PACKAGE WILL PULL JAPAN OUT OF ITS NAGGING ECONOMIC DOWNTURN ON FRIDAY TOKYO STOCKS ENDED BROADLY LOWER FOR THE SECOND CONSECUTIVE SESSION WITH THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH SANK TWO HUNDRED FORTY SIX POINT FOUR TWO POINTS THURSDAY DROPPING ONE HUNDRED THIRTY THREE POINT NINE ONE TO EIGHTEEN THOUSAND SEVEN HUNDRED FIFTY SEVEN POINT EIGHT EIGHT FRIDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT A THIN TWO HUNDRED FIFTY MILLION SHARES DOWN FROM FOUR HUNDRED THIRTY ONE POINT ONE MILLION SHARES A DAY EARLIER DECLINERS FAR OUTNUMBERED GAINERS SEVEN HUNDRED EIGHTEEN TO TWO HUNDRED SIXTY TWO THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH LOST THIRTEEN POINT EIGHT TWO POINTS THURSDAY FELL EIGHT POINT SIX EIGHT TO ONE THOUSAND FIVE HUNDRED TWENTY SEVEN POINT EIGHT TWO THE DECLINES FOLLOWED THE FAILURE THURSDAY NIGHT OF A JOINT JAPANESE PARLIAMENTARY COMMITTEE TO COMPROMISE AND RESCUE PROPOSALS FOR POLITICAL REFORM BEFORE THE SATURDAY DEADLINE THE IMPASSE HAS HELD UP STIMULUS MEASURES LATE FRIDAY POLITICIANS REACHED A COMPROMISE ON THE REFORM PACKAGE IT WILL COME UP FOR A VOTE IN PARLIAMENT'S NEXT SESSION WHICH BEGINS MONDAY THE NIKKEI ON FRIDAY HIT ITS INTRADAY LOW ON ARBITRAGE LINKED SELLING BUT RECOUPED SOME LOSSES AS INVESTORS SOUGHT BARGAINS THOUGH OVERSEAS INVESTORS REMAINED NET BUYERS THEY WERE LESS ENTHUSIASTIC BECAUSE OF THE POLITICAL UNCERTAINTY LONDON SHARES FOLLOWING A DISASTROUS OPENING RECOVERED TO POST GAINS FRIDAY IN REACTION TO POSITIVE U. S. ECONOMIC DATA WHICH BOOSTED PARIS STOCKS ONE POINT FOUR PERCENT AND SENT MADRID AND STOCKHOLM EQUITIES TO NEW HIGHS WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED FIFTEEN POINT ONE THREE DOWN ZERO POINT THREE TWO REFLECTING AN INCREASE IN MARKETS IN THE AMERICAS AND DROPS IN EUROPEAN AND ASIA SLASH PACIFIC MARKETS HEALTH CARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED FIFTY SEVEN POINT NINE FOUR UP THREE POINT ONE SEVEN OR TWO POINT ONE PERCENT WITH HOSPITAL CORPORATION OF AMERICA OF THE U. S. POSTING A THREE POINT THREE PERCENT GAIN IN ITS LOCAL CURRENCY FOOD RETAIL AND WHOLESALE STOCKS TRAILED AT ONE HUNDRED SEVEN POINT EIGHT FIVE DOWN TWO POINT FOUR FOUR OR TWO POINT TWO PERCENT WITH J. SAINSBURY P. L. C. OF THE U. K. SLIDING ELEVEN PERCENT IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX ADVANCED TWENTY POINT ONE POINTS TO THREE THOUSAND FOUR HUNDRED FORTY SEVEN POINT FOUR REBOUNDING FROM THE SESSION'S LOW OF THREE THOUSAND FOUR HUNDRED THREE POINT THREE THE F. T. THIRTY STOCK INDEX ROSE TWELVE POINT SIX POINTS TO TWO THOUSAND SIX HUNDRED THIRTY NINE POINT NINE VOLUME WAS A STRONG ONE POINT ONE FOUR BILLION SHARES UP FROM NINE HUNDRED SEVENTY TWO POINT SIX MILLION SHARES A DAY EARLIER SHORTLY AFTER THE OPENING THE F. T. ONE HUNDRED PLUNGED PARTLY ON SELLING OF SUPERMARKET RETAILERS FOLLOWING A DISAPPOINTING FINANCIAL REPORT THE LATE RALLY WAS SPARKED BY STRONGER THAN EXPECTED U. S. GROWTH FIGURES FOR LAST YEAR'S FOURTH QUARTER AND BY A U. S. INFLATION MEASURE THAT HIT A TWENTY SEVEN YEAR LOW THE DATA IGNITED RALLIES IN U. S. STOCKS AND BONDS AND DANGLED THE PROMISE OF A SIMILAR BULL RUN FOR THE LONDON BOURSE WHERE INVESTORS HAVE BEEN WORRIED ABOUT CORPORATE EARNINGS INFLATION AND INTEREST RATES IN FRANKFURT PRICES CLOSED MOSTLY HIGHER WITH THE D. A. X. THIRTY STOCK INDEX RISING EIGHT POINT THREE THREE POINTS TO TWO THOUSAND ONE HUNDRED THIRTY THREE POINT FOUR SEVEN MARKING A TWO POINT EIGHT PERCENT GAIN FOR LAST WEEK'S NERVOUS VOLATILE TRADING THE FIRST OVERALL WEEKLY RISE THIS YEAR THOUGH FOREIGN INVESTORS HAVE BEEN CAUTIOUS ABOUT GERMAN EQUITIES RECENTLY ANALYSTS SAID HIGH LIQUIDITY OF GERMAN PRIVATE AND INSTITUTIONAL INVESTORS AS WELL AS CONTINUING HOPES FOR INTEREST RATE EASINGS WILL CONTINUE TO SUPPORT SHARE PRICES IN PARIS STOCKS JUMPED AS INVESTORS WERE ENTHUSIASTIC ABOUT LAST YEAR'S STRONG U. S. ECONOMIC GROWTH WITH REINED IN INFLATION AS THE FRENCH AND OTHER EUROPEAN ECONOMIES HAVE BEEN DRAGGED DOWN BY GERMANY'S RECESSIONARY WOES AND FRANCE HAS BEEN STRUGGLING WITH HIGH INTEREST RATES THE PARIS STOCK MARKET TROLLS FOR GOOD NEWS IN THE U. S. A FRENCH EXPORT MARKET AND MAJOR SOURCE OF EARNINGS FOR MANY FRENCH COMPANIES WITH BIG U. S. UNITS IN AMSTERDAM AFTER A MIXED TO LOWER START STOCKS STAGED A LATE RALLY TO END HIGHER BUOYED BY ADVANCES IN OTHER MARKETS INCLUDING WALL STREET'S STRONG OPENING POSITIVE DUTCH TRADE DATA DIDN'T INFLUENCE THE BOURSE IN MILAN SHARES CLOSED A RECORD BREAKING WEEK WITH A BIG JUMP ON ALL TIME HIGH VOLUME PRICES OPENED LOWER ON PROFIT TAKING BUT BUYERS MOVED IN ENCOURAGED BY AN IMPROVED OUTLOOK FOR ITALIAN CORPORATE PERFORMANCE PROSPECTS FOR LOWER INTEREST RATES COMING ITALIAN PRIVATIZATIONS AND A LIQUIDITY INJECTION FROM MUTUAL FUNDS IN MADRID PRICES SOARED TO A RECORD AS FEVERISH BUYING BROKE OUT IN RESPONSE TO THE FAVORABLE U. S. ECONOMIC GROWTH FIGURES AND IN STOCKHOLM SHARES ROSE TO A RECORD FINISH THE SECOND IN A ROW IN HEAVY TRADING SUPPORTED BY ADVANCES IN EQUITY MARKETS ABROAD AND THE STRONG STATISTICS ON U. S. GROSS NATIONAL PRODUCT IN ZURICH STOCKS RALLIED IN HEAVY TURNOVER WITH CHEMICAL AND BANKING ISSUES LEADING THE WAY UP THE BANKING SECTOR GAINED ON A REPORT THAT THIS MONTH'S SWISS INFLATION RATE SLOWED FROM THE DECEMBER PACE AND THE BROADER MARKET WAS BUOYED BY STRONG U. S. AND EUROPEAN STOCK MARKETS IN BRUSSELS SHARES ENDED NARROWLY MIXED AS INVESTORS CLOSED OUT POSITIONS AHEAD OF THE WEEKEND BUT THE MAIN INDEX EDGED UP TO A SECOND CONSECUTIVE RECORD FINISH IN MEXICO CITY STOCKS ROSE ONE POINT ONE PERCENT TO A SECOND CONSECUTIVE RECORD AGAIN LED BY GROWTH AND SOLID EARNINGS PROSPECTS FOR THE TELECOMMUNICATIONS SECTOR IN SYDNEY PRICES IN MOST SECTORS GAINED GROUND BUT GOLD STOCKS AND SOME METAL AND MINERAL ISSUES FELL BECAUSE OF A WEAKER GOLD PRICE IN HONG KONG SHARES DROPPED IN AN EXTREMELY VOLATILE SESSION THAT TOOK PRICES ACROSS A WIDE RANGE ON THE EXPIRATION DAY OF JANUARY STOCK INDEX FUTURES RUMORS THAT HONG KONG BANKS WOULD TIGHTEN THEIR MORTGAGE LENDING POLICIES WEAKENED PRICES LATE IN THE SESSION IN SINGAPORE EQUITIES CLOSED HIGHER IN SLOW CAUTIOUS BUYING BUT IN KUALA LUMPUR STOCKS RALLIED ONE POINT FIVE PERCENT AFTER CHOPPY TRADING MARKED BY BOUTS OF HEAVY PROFIT TAKING IN TAIPEI FOLLOWING A THREE PERCENT JUMP THE PREVIOUS DAY SHARES SLIPPED FALLING FROM EARLY GAINS ON JITTERINESS ABOUT THE LARGE VOLUME OF MARGIN LOANS FOR STOCKS BOUGHT PARTLY ON CREDIT THE FALL CAME DESPITE POSITIVE ECONOMIC INDICATORS FOR TAIWAN IN MANILA EQUITIES SLUMPED TWO POINT FIVE PERCENT IN MODERATE TRADING AS PARTICIPANTS SOLD ON NEWS OF AN INCREASE IN PHILIPPINE OIL PRICES IN SEOUL PRICES CLIMBED TWO POINT ONE PERCENT IN ACTIVE TRADING LED BY SMALLER BLUE CHIPS TO PUT THE MARKET AT ITS HIGHEST CLOSING LEVEL IN FOUR YEARS INVESTORS' DEPOSITS WITH BROKERAGE FIRMS AN INDICATOR OF THE SOUTH KOREAN BOURSE'S UPWARD POTENTIAL HAVE BEEN INCREASING BETWEEN TWENTY FIVE MILLION DOLLARS AND SIXTY TWO MILLION DOLLARS A DAY IN RECENT SESSIONS IN WELLINGTON STOCKS FINISHED WITH A ONE POINT THREE PERCENT GAIN DESPITE LATE PROFIT TAKING 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END TRANS FINANCIAL BANCORP BOWLING GREEN KENTUCKY SAID IT ENTERED A DEFINITIVE AGREEMENT TO ACQUIRE FGC HOLDING COMPANY IN A STOCK TRANSACTION VALUED AT SEVENTEEN MILLION DOLLARS FGC HOLDERS WILL RECEIVE FOUR HUNDRED NINETEEN POINT EIGHT THREE TRANS FINANCIAL SHARES FOR EACH FGC SHARE HELD THE SEVENTEEN MILLION DOLLAR TRANSACTION VALUE IS BASED UPON THURSDAY'S CLOSING PRICE OF SIXTEEN DOLLARS AND TWENTY FIVE CENTS AND THE ISSUANCE OF ABOUT ONE MILLION FIFTY THOUSAND NEW TRANS FINANCIAL SHARES TRANS FINANCIAL SAID IT EXPECTS THE TRANSACTION TO CONSTITUTE A TAX FREE REORGANIZATION AND TO QUALIFY FOR THE POOLING OF INTEREST METHOD OF ACCOUNTING TRANS FINANCIAL IS A ONE BILLION DOLLAR BANK COMPANY AND OPERATES THIRTY SEVEN BRANCHES IN KENTUCKY AND TENNESSEE FGC BASED IN MARTIN KENTUCKY IS A ONE HUNDRED TWENTY SIX MILLION DOLLAR BANK HOLDING COMPANY FOR FIRST GUARANTY NATIONAL BANK TRANS FINANCIAL SAID IT EXPECTS TO MERGE FIRST GUARANTY INTO ITS COMMERCIAL BANK SUBSIDIARY TRANS FINANCIAL BANK UPON CLOSING OF THE TRANSACTION MERGER TURNER BROADCASTING SYSTEM INCORPORATED AND NEW LINE CINEMA CORPORATION COMPLETED THE PREVIOUSLY ANNOUNCED MERGER OF NEW LINE WITH A T. B. S. UNIT BEVERLY ENTERPRISES INCORPORATED POSTED FOURTH QUARTER NET INCOME OF SIXTEEN POINT EIGHT MILLION DOLLARS OR SEVENTEEN CENTS A SHARE COMPARED WITH A NET LOSS OF THIRTY TWO POINT FIVE MILLION DOLLARS OR FORTY FOUR CENTS A SHARE A YEAR EARLIER THE FORT SMITH ARKANSAS OPERATOR OF NURSING HOMES SAID REVENUE ROSE SIX PERCENT TO SEVEN HUNDRED THIRTY SIX POINT NINE MILLION DOLLARS FROM SIX HUNDRED NINETY TWO POINT NINE MILLION DOLLARS THE RESULTS WERE IN LINE WITH ANALYSTS' PROJECTIONS BEVERLY ATTRIBUTED THE IMPROVED RESULTS TO THE CONTINUING GROWTH OF ANCILLARY SERVICES INCLUDING REHABILITATION PROGRAMS IN HOUSE PHARMACY OPERATIONS AND SUBACUTE CARE WHICH INVOLVES CARING FOR PATIENTS WHO ARE SICKER THAN TRADITIONAL NURSING HOME PATIENTS BUT NO LONGER REQUIRE THE SERVICES OF AN ACUTE CARE HOSPITAL A SPOKESMAN ALSO SAID THAT THE COMPANY HAD KEPT EXPENSES IN CHECK BY FURTHER CONSOLIDATING PURCHASING ACTIVITIES OF ITS FACILITIES ANADARKO PETROLEUM CORPORATION HOUSTON SAID IT WILL BOOST CAPITAL SPENDING ABOUT FORTY PERCENT IN NINETEEN NINETY FOUR TO THREE HUNDRED SEVENTY MILLION DOLLARS FROM NINETEEN NINETY THREE CAPITAL EXPENDITURES OF TWO HUNDRED SIXTY FOUR POINT FIVE MILLION DOLLARS EXPLORATION AND DEVELOPMENT SPENDING OF TWO HUNDRED FORTY SEVEN MILLION DOLLARS IS PLANNED WITH EXPLORATION SPENDING INCREASING TO ONE HUNDRED FIVE MILLION DOLLARS FROM NINETY SEVEN POINT THREE MILLION DOLLARS AND DEVELOPMENT SPENDING INCREASING TO ONE HUNDRED FORTY TWO MILLION DOLLARS FROM SEVENTY SEVEN POINT SEVEN MILLION DOLLARS THE OIL AND NATURAL GAS COMPANY SAID EIGHTY FIVE PERCENT OF EXPLORATION AND DEVELOPMENT FUNDS WILL BE SPENT ON DOMESTIC DRILLING PROJECTS WITH THE REMAINDER GOING TO PROJECTS IN ALGERIA CANADA AND INDONESIA IN ADDITION THE COMPANY HAS BUDGETED THIRTY SIX MILLION DOLLARS FOR CONSTRUCTION OF GAS GATHERING FACILITIES IN SOUTHWESTERN KANSAS BASE METAL PRICES ARE BOOMING ENERGIZED BY A FLOOD OF BUYING BY U. S. COMMODITY FUNDS AND OTHER SPECULATORS SINCE THEIR LOW POINT IN THE AUTUMN PRICE INCREASES HAVE BEEN NOTHING SHORT OF SPECTACULAR ALTHOUGH METALS DROPPED OFF SLIGHTLY FROM THEIR PEAKS LAST WEEK NICKEL AND LEAD ARE UP FORTY TWO PERCENT ALUMINUM AND TIN TWENTY PERCENT ZINC SEVENTEEN PERCENT WHILE COPPER GAINED SIXTEEN PERCENT ALL OF THESE BASE METALS OUTPACED THE PERFORMANCE OF GOLD WHICH HAS RISEN ELEVEN PERCENT FROM ITS SEPTEMBER LOW OF THREE HUNDRED FORTY TWO DOLLARS QUOTE FUND MANAGERS SPOTTED THE BOTTOM OF THE MARKET LATE LAST YEAR AND IN THE MAIN BOOSTED PRICES QUOTE SAYS TED ARNOLD LONDON BASED METALS ANALYST AT MERRILL LYNCH MANUFACTURERS AND OTHER METALS CONSUMERS WERE SO CONDITIONED BY DEPRESSED PRICES LAST YEAR THAT THEY MAINTAINED LOW INVENTORIES AND WERE LIVING HAND TO MOUTH MR. ARNOLD SAYS THUS THEY WERE TAKEN BY SURPRISE BY SUDDEN PRICE SPURTS AND WERE OBLIGED TO PAY HIGHER PRICES FOR THE METALS THEY NEEDED HE SAYS AFTER SUCH IMPRESSIVE GAINS THE MARKET IS LIKELY TO BE VOLATILE IN THE WEEKS AHEAD CAUTIONS WILLIAM ADAMS METALS ANALYST AT RUDOLF WOLFF AND COMPANY A LONDON COMMODITY BROKERAGE FIRM METAL PRICES ARE ALREADY MEETING RESISTANCE TO ADDITIONAL GAINS AT CURRENT LEVELS HE SAYS MANY ANALYSTS AGREE THAT THE WORST IS OVER FOR METAL PRODUCERS WHO WEATHERED A STULTIFYING FUNK IN PRICES FROM NINETEEN NINETY THROUGH NINETEEN NINETY TWO YET THEY DOUBT THAT THERE WILL BE A QUICK RETURN TO THE BUOYANT TIMES OF THE PAST DECADE WHEN METAL PRICES SOARED IN THE EIGHTIES THE REBOUND WAS PROMPTED BY SHARP INCREASES IN WORLD WIDE PHYSICAL DEMAND SAYS ANGUS MACMILLAN HEAD OF RESEARCH AT BILLITON ENTHOVEN METALS LIMITED DURING THAT PERIOD THE MAJOR INDUSTRIALIZED ECONOMIES RECOVERED VIRTUALLY IN TANDEM NOW HOWEVER ECONOMIES AREN'T MOVING AT THE SAME PACE THE U. S. ECONOMIC RECOVERY FOR INSTANCE IS FAR AHEAD OF THE ECONOMIES OF EUROPE AND THE ASIAN PACIFIC REGION THUS DEMAND FOR METALS IS UNEVEN MR. MACMILLAN SAYS METALS PURCHASES ARE ONLY SURGING IN THE U. S. DEALERS SAY WHILE DEMAND REMAINS DEPRESSED IN JAPAN AND EUROPE METAL IMPORTS BY CHINA STRONG IN RECENT YEARS ARE SLOWING DEALERS SAY THAT'S BECAUSE COPPER AND NICKEL STOCKS HAVE RISEN IN CHINA AFTER THE COUNTRY'S SUBSTANTIAL PURCHASES IN THE FIRST HALF OF LAST YEAR SINCE THEN ECONOMIC AUSTERITY IMPORT RESTRICTIONS AND CURRENCY DEVALUATION ALSO HAVE CRIMPED CHINA'S ORDERS FOR BASE METALS DEALERS SAY MEANWHILE DEALERS ARE NERVOUS ABOUT THE EXPORT INTENTIONS OF RUSSIAN MINES WHICH ACCOUNT FOR MUCH OF THE WORLD'S SUPPLY OF INDUSTRIAL METALS AS A RESULT OF RUSSIA'S HYPERINFLATION RECESSION AND CURRENCY DEVALUATION RUSSIAN AND OTHER COMMONWEALTH OF INDEPENDENT STATES METAL PRODUCERS MUST SELL AS MUCH OF THEIR COMMODITIES AS POSSIBLE TO RAISE MONEY ON THE OTHER HAND RUSSIA'S PRODUCTION OF KEY METALS SUCH AS NICKEL AND COPPER IS SLIDING SO SOME METALS MERCHANTS EXPECT A CONSEQUENT DECLINE IN EXPORTS SOME NERVOUSNESS METAL DEALERS ALSO WAIT NERVOUSLY TO SEE WHETHER RUSSIAN PRODUCERS AND EASTERN EUROPEAN NATIONS WILL AGREE TO STEM ALUMINUM EXPORTS THIS YEAR AN UNUSUALLY HIGH TOTAL OF ABOUT ONE POINT FOUR MILLION METRIC TONS OF ALUMINUM OR ABOUT TEN PERCENT OF GLOBAL SUPPLIES WAS EXPORTED BY THESE COUNTRIES IN NINETEEN NINETY THREE EVEN THOUGH THE PRICE OF ALUMINUM WHICH IS TRADED AS A FUTURES CONTRACT AT THE LONDON METAL EXCHANGE TOUCHED A SIX MONTH HIGH LAST WEEK METAL MERCHANTS AND DEALERS ARE SKEPTICAL ABOUT RECENT INDUSTRY TALKS IN BRUSSELS AIMED AT SLASHING ALUMINUM OUTPUT WORLD WIDE EVEN IF THERE WERE TO BE GLOBAL OUTPUT CUTS THERE WOULD STILL BE MORE THAN ENOUGH INVENTORIES TO SATISFY THE DEMAND FOR ALUMINUM AND OTHER BASE METALS ANALYSTS SAY METALS INVENTORIES ARE HIGHER THAN AT ANY TIME DURING THE EIGHTIES AND IN SOME INSTANCES THEY ARE CONSIDERABLY LARGER SAYS MR. MACMILLAN OF BILLITON ENTHOVEN HE ESTIMATES THAT NICKEL'S WORLD WIDE INVENTORIES AMOUNT TO TWENTY TWO WEEKS' WORTH OF CONSUMPTION ALUMINUM FIFTEEN WEEKS' AND ZINC AND TIN ABOUT FOURTEEN WEEKS' SUPPLY AND DEMAND FUNDAMENTALS OF COPPER AND LEAD ARE MORE POSITIVE MR. MACMILLAN SAYS IT WOULD ONLY TAKE ABOUT EIGHT WEEKS TO CONSUME EXISTING STOCKS OF THESE TWO METALS HE SAYS NOT MAGIC QUOTE REGARDLESS OF SPECULATIVE FERVOR METALS INVENTORIES CANNOT SIMPLY DISAPPEAR LIKE MAGIC QUOTE MR. MACMILLAN SAYS MOREOVER ARTIFICIALLY HIGH PRICES ARE DISCOURAGING MANY PRODUCERS FROM CUTTING PRODUCTION HE SAYS ALTHOUGH AS MR. ARNOLD SAYS THE PSYCHOLOGY OF THE MARKET CHANGED DRAMATICALLY IN THE PAST TWO MONTHS PRICES COULD STILL SEE PERIODIC PRICE TUMBLES HE SAYS FOR BASE METALS TO REMAIN IN A SUSTAINED UPWARD TREND ORDERS MUST IMPROVE WORLDWIDE AND BE ACCOMPANIED BY FALLING OUTPUT ANALYSTS SAY YET GENUINE METALS CONSUMERS THAT SEE AN IMPROVEMENT IN BUSINESS WILL BUY WHENEVER PRICES FALL HE SAYS THE ERRATIC PACE OF JOB GROWTH THAT KEPT ECONOMISTS GUESSING FOR MOST OF NINETEEN NINETY THREE HAS SMOOTHED OUT AND THE PACE IS EXPECTED TO STAY ON ITS STEADY UPWARD PATH FOR THE REST OF THE YEAR NONFARM PAYROLL JOBS FLUCTUATED WILDLY FROM MONTH TO MONTH FOR THE FIRST THREE QUARTERS OF NINETEEN NINETY THREE BEFORE SETTLING INTO A GROOVE OF ONE HUNDRED SIXTY THOUSAND TO TWO HUNDRED THOUSAND A MONTH STARTING IN SEPTEMBER A LABOR DEPARTMENT REPORT THIS WEEK PROBABLY WILL SHOW THE ECONOMY PICKED UP ANOTHER TWO HUNDRED THOUSAND PAYROLL JOBS IN JANUARY SAID STUART HOFFMAN CHIEF ECONOMIST AT P. N. C. BANK CORPORATION IN PITTSBURGH QUOTE WE EXPECT TO SEE A FAIRLY BROAD BASED RISE WITH INCREASES IN MANUFACTURING CONSTRUCTION MINING AND SERVICE INDUSTRIES QUOTE HE SAID MANUFACTURERS WHO HAVE BEEN RELUCTANT TO HIRE FULL TIME EMPLOYEES EVER SINCE THE RECESSION PROBABLY TOOK ON AN ADDITIONAL TEN THOUSAND TO TWENTY THOUSAND WORKERS IN DECEMBER ACCORDING TO MR. HOFFMAN FOR ALL OF NINETEEN NINETY THREE JUST UNDER TWO MILLION PAYROLL JOBS WERE GENERATED AND WE EXPECT TO SEE FURTHER PROGRESS IN THE JOB MARKET IN NINETEEN NINETY FOUR HE SAID THE LABOR DEPARTMENT REPORT ALSO SHOULD SHOW CONTINUED CONTAINMENT OF WAGE COSTS ONE OF THE MAIN FACTORS IN CONTROLLING INFLATION MR. HOFFMAN SAID HILLHAVEN CORPORATION A TACOMA WASHINGTON BASED NURSING HOME OPERATOR SAID ITS LARGEST SHAREHOLDER NATIONAL MEDICAL ENTERPRISES INCORPORATED INCREASED ITS HOLDINGS OF HILLHAVEN SHARES TO TWENTY FIVE PERCENT ON A FULLY DILUTED BASIS NATIONAL MEDICAL WHICH SPUN OFF HILLHAVEN IN NINETEEN NINETY WHILE RETAINING FOURTEEN PERCENT OF THE CONCERN EXERCIZED WARRANTS TO PURCHASE SIX MILLION SHARES OF HILLHAVEN'S STOCK A HILLHAVEN SPOKESMAN DESCRIBED NATIONAL MEDICAL SANTA MONICA CALIFORNIA AS A QUOTE PASSIVE LONG TERM QUOTE INVESTOR WHEN BASEBALL'S TWENTY EIGHT TEAMS FINALLY REACHED A REVENUE SHARING AGREEMENT RECENTLY IT WAS PRESENTED AS A RARE ACT OF TEAM OWNERS' STATESMANSHIP QUOTE A UNIQUE AND HISTORIC DAY QUOTE AS INTERIM COMMISSIONER BUD SELIG PUT IT BUT BEER SALES MAY HAVE HAD FAR MORE TO DO WITH IT DURING THE LAST WEEKS OF BASEBALL'S LONG EFFORT TO TRANSFER FUNDS FROM RICH BALL CLUBS TO DISTRESSED ONES THE CHIEF EXECUTIVES OF THE KANSAS CITY ROYALS SAN FRANCISCO GIANTS AND HOUSTON ASTROS REVENUE SHARING PROPONENTS ALL PLACED CALLS TO THE CHAIRMAN OF THE SAINT LOUIS CARDINALS A STAUNCH OPPONENT SUDDENLY SAINT LOUIS BROKE FROM THE GROUP BLOCKING REVENUE SHARING AND OFFERED THE COMPROMISE THAT WAS FINALLY ACCEPTED WHAT HAPPENED WELL TEAM OWNERS WEAR MORE THAN ONE CAP DAVID GLASS THE ROYALS' CHAIRMAN ALSO HEADS WAL MART STORES INCORPORATED THE LARGEST CUSTOMER OF THE CARDINALS' PARENT BEER MARKETER ANHEUSER BUSCH COMPANIES DRAYTON MCLANE JUNIOR THE ASTROS' OWNER IS WAL MART'S SECOND BIGGEST SHAREHOLDER PETER MAGOWAN THE GIANTS' OWNER ALSO IS CHAIRMAN OF SAFEWAY INCORPORATED THE NATION'S THIRD LARGEST SUPERMARKET CHAIN WHEN THEY TALK BREWERY CHIEF AUGUST A. BUSCH THREE LISTENS HE EXPLAINED TO CARDINALS PRESIDENT STEWART MEYER ACCORDING TO PEOPLE FAMILIAR WITH EVENTS THAT THERE WAS GOING TO BE A CHANGE IN THE CLUB'S POSITION MR. MEYER TOOK IT FROM THERE GOSH I DON'T DESERVE ANY CREDIT FOR IT SAYS MR. GLASS WHO DOES ADMIT TO DRAWING ON HIS LONGTIME BUSINESS AND PERSONAL RELATIONSHIP WITH MR. BUSCH SAINT LOUIS DESERVES THE CREDIT FOR BRINGING IN FRESH PROPOSALS MESSRS MAGOWAN AND MCLANE ACKNOWLEDGE MAKING CALLS TERMED BY THE LATTER AS VERY FRIENDLY VERY CORDIAL NOT THREATENING OR INTIMIDATING WHATSOEVER BUT BASEBALL OFFICIALS WHILE NOTING THAT OTHER FACTORS AND OTHER PEOPLE CONTRIBUTED TO THE ACCORD SAY THESE WERE THE CONTACTS THAT BROKE THE STALEMATE ANYBODY WHO KNOWS AUGUST BUSCH KNOWS THE LAST THING YOU CAN DO IS THREATEN HIM SAYS AN INSIDER BUT THESE WERE FRIENDLY CALLS REMINDING HIM OF THE CARDINALS' BIGGER INTERESTS AND OF COURSE ONE OF THOSE INTERESTS IS SELLING BEER SAYS A LONGTIME BASEBALL EXECUTIVE QUOTE EVERY CLUB VOTES ITS OWN ECONOMY AND IN THE CASE OF THE CARDINALS IT'S ALWAYS THE ECONOMY OF BEER AT WORK QUOTE SOME OHIO STATE LEGISLATORS GOT MORE THAN COOKIES AND SODA AT A MEETING IN COLUMBUS LAST JUNE WITH OFFICIALS OF MCDONALD AND COMPANY SECURITIES A MUNICIPAL BOND DEALER ON THE WAY OUT THEY ALSO GOT FIVE HUNDRED DOLLAR CHECKS OR AS MCDONALD PUTS IT HONORARIUMS FOR THEIR TIME THE SECURITIES AND EXCHANGE COMMISSION IS NOW CONSIDERING A PROPOSAL THAT WOULD BAR MUNICIPAL BOND DEALERS AND UNDERWRITERS FROM MAKING POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS BUT POLITICAL CONTRIBUTIONS AREN'T THE ONLY WAY TO WIN INFLUENTIAL FRIENDS IN THE MUNICIPAL BOND BUSINESS BESIDES HONORARIUMS DEALERS AND UNDERWRITERS HAVE GIVEN ISSUERS AND POLITICIANS PERKS RANGING FROM GOLF TRIPS AND FANCY DINNERS TO BASEBALL AND THEATER TICKETS THE PRACTICE OF GIFT GIVING BY BOND DEALERS SEEKING UNDERWRITING BUSINESS IS WIDESPREAD SAYS PAUL WOOLSEY WHO WORKED IN MUNICIPAL FINANCE IN OKLAHOMA FOR TWENTY FIVE YEARS QUOTE IT GOES ON EVERYWHERE IN THE COUNTRY QUOTE INDEED UNDERWRITERS HAVE PAID FOR BOND ISSUERS TO ATTEND THE LAVISH ANNUAL PENNSYLVANIA SOCIETY DINNER AT NEW YORK'S WALDORF ASTORIA HOTEL IN OHIO THE FIRM SEASON GOOD AND MAYER FETES ISSUERS WITH BASEBALL AND FOOTBALL TICKETS AND OPENING DAY BUFFETS AND MAINE'S STATE TREASURER TOOK ADVANTAGE OF AN EXPENSE PAID TRIP TO A CONFERENCE IN TUCSON ARIZONA SPONSORED BY A COMPANY THAT PROVIDES INVESTMENT MANAGEMENT SERVICES FOR BOND ISSUERS THE TREASURER SAM SHAPIRO SAYS HE ACCEPTED EXPENSES FOR THE TRIP BECAUSE HE WAS A SPEAKER ON A PANEL PROSECUTORS ATTORNEYS AND OTHERS FAMILIAR WITH THE MUNICIPAL BOND INDUSTRY SAY THAT AT THE VERY LEAST THE PRACTICE OF GIVING AND TAKING EVEN SMALL GIFTS PROVIDES THE APPEARANCE OF A CONFLICT OF INTEREST AT THE WORST IT MAY BE DOWNRIGHT ILLEGAL FOR IT MAY BE PART OF A PATTERN OF EXTENSIVE WRONGDOING UNDER WHAT HE TERMS THE AL CAPONE THEORY MICHAEL CHERTOFF THE U. S. ATTORNEY IN NEWARK N. J. SAYS THAT IN SITUATIONS WHERE THERE IS REASON TO SUSPECT CORRUPT ACTIVITY BUT WHERE THE ALLEGED CRIMES ARE TOUGH TO PROVE PROSECUTORS WILL RESORT TO CHARGING INDIVIDUALS WITH TECHNICAL CRIMES LIKE RECEIVING A GRATUITY WHETHER IT BE A TRIP OR A SEVENTY FIVE DOLLAR DINNER THIS RECALLS THE GOVERNMENT'S APPROACH OF CRACKING DOWN ON THE CHICAGO GANGSTER BY CHARGING HIM WITH TAX EVASION INSTEAD OF HARDER TO PROVE CRIMES IT'S A TACTIC THAT HASN'T YET BEEN USED IN CRIMINAL CASES INVOLVING THE MUNICIPAL BOND INDUSTRY MR. CHERTOFF SAYS BUT IT HAS BEEN EMPLOYED IN OTHER CASES INVOLVING GOVERNMENT OFFICIALS LAST YEAR FOR EXAMPLE A FEDERAL JURY CONVICTED A FORMER HOUSING AND URBAN DEVELOPMENT DEPARTMENT OFFICIAL WHOSE JOB ENTAILED SOLICITING BUSINESS FROM THAT AGENCY ON A CHARGE OF PROVIDING AN EXPENSE PAID TRIP TO NEW YORK AND TICKETS TO THE HIT MUSICAL CATS TO A HUD OFFICIAL EVEN IF STATE LAW DOESN'T FORBID IT PUBLIC OFFICIALS SHOULDN'T BE ACCEPTING GIFTS OR PRESENTS ON ACCOUNT OF THEIR PUBLIC POSITIONS MR. CHERTOFF SAYS THE GRATUITY SITUATION IS POTENTIALLY CORRUPTING AND SYMPTOMATIC OF BIGGER PROBLEMS STATE LAWS GOVERNING THE ACCEPTANCE OF ENTERTAINMENT AND GRATUITIES VARY KENTUCKY OFFICIALS AREN'T EVEN PERMITTED TO ATTEND DINNERS HELD FOR THE CLOSING OF BOND OFFERINGS IOWA OFFICIALS CAN GO TO DINNER IF IT COSTS FOUR DOLLARS OR LESS IN VIRGINIA AND NORTH DAKOTA LAWS ARE MORE LENIENT WALL STREET FIRMS ARE ACCUSTOMED TO SCHMOOZING AND BOOZING THEIR CORPORATE CLIENTS BUT WINING AND DINING MUNICIPAL BOND ISSUERS IS DIFFERENT THESE ARE NOT PRIVATE TRANSACTIONS THEY ARE IN THE PUBLIC DOMAIN SAYS MR. WOOLSEY QUOTE EVERY DOLLAR THAT GOES INTO THESE ENTERTAINMENT EXPENSES IS A DOLLAR OUT OF A TAXPAYER'S POCKET QUOTE BECAUSE UNDERWRITERS OFTEN SEEK TO RECOUP THE COSTS BY CHARGING THE LOCAL BOND ISSUERS HIGHER FEES CAROL ROBERTS A COUNTY COMMISSIONER IN PALM BEACH FLORIDA SAYS SHE LEARNED THAT THE HARD WAY WHEN AS A NEW COMMISSIONER SHE FLEW TO NEW YORK FOR A CLOSING OF A DEAL IT TAKES AN HOUR TO SIGN THE CONTRACTS AND DOCUMENTS SHE SAYS BUT ALL THE COSTS OF THE TRIP ARE CHARGED BACK TO YOU RESPONDING TO INCREASED SCRUTINY OF THE MUNICIPAL BOND MARKET BY PROSECUTORS AND THE S. E. C. THE MUNICIPAL SECURITIES RULEMAKING BOARD LAST WEEK PROPOSED NEW RECORD KEEPING REQUIREMENTS FOR GIFTS AND GRATUITIES MADE BY BOND DEALERS AND UNDERWRITERS THE BOARD THE INDUSTRY'S SELF REGULATORY AGENCY SETS A ONE HUNDRED DOLLAR A YEAR CAP ON THE VALUE OF GIFTS ALTHOUGH IT EXEMPTS CERTAIN PAYMENTS AMONG THE ITEMS EXEMPTED OCCASIONAL GIFTS OF MEALS OR TICKETS TO THEATRICAL SPORTING AND OTHER ENTERTAINMENT EVENTS AS WELL AS THE SPONSORING OF LEGITIMATE BUSINESS FUNCTIONS MERRILL LYNCH AND COMPANY GOLDMAN SACHS AND COMPANY LAZARD FRERES AND COMPANY AND OTHER WALL STREET FIRMS HAVE ALREADY TIGHTENED THEIR OWN RULES IN RECENT MONTHS MUNICIPAL BOND EMPLOYEES AT THOSE FIRMS MUST CLEAR IN ADVANCE LUNCHES AND DINNERS BOUGHT FOR ISSUERS GOLDMAN IS EVEN CONSIDERING BARRING THOSE ENGRAVED PLASTIC CUBES THAT ARE GIVEN TO MUNICIPAL FINANCE CLIENTS AS SOUVENIRS OF A DEAL MR. SHAPIRO MAINE'S TREASURER SAYS HE HAS ALREADY NOTICED THE DIFFERENCE WALL STREET FIRMS HE SAYS HAVE CUT BACK SHARPLY ON HOLIDAY GIFTS THIS YEAR I HAD TO BUY MY OWN ADDRESS BOOK HE SAYS I USED TO GET LOTS OF THEM AND ON A RECENT TRIP TO NEW YORK HE SAYS HE ASKED A KIDDER PEABODY AND COMPANY BANKER IF THEY COULD TAKE A CAB DOWNTOWN ONLY TO BE TOLD WE'RE TAKING THE SUBWAY MR. SHAPIRO SAYS THE BANKER GAVE HIM A ONE DOLLAR AND TWENTY FIVE CENT SUBWAY TOKEN GORDON REIS MANAGING PARTNER OF SEASON GOOD A CINCINNATI BASED MUNICIPAL BOND FIRM SAYS HE SEES NO REASON TO QUIT GIVING AWAY SPORTS TICKETS QUOTE I DON'T THINK ANYBODY IN THE WORLD CAN BE BOUGHT FOR THE PRICE OF A BASEBALL TICKET ESPECIALLY TO THE REDS QUOTE HE SAYS WHAT THESE EVENTS DO HE SAYS IS TO PROVIDE ACCESS TO OFFICIALS IN THE OHIO HONORARIUM INCIDENT MCDONALD SAYS IT GAVE CHECKS TO ABOUT SEVENTEEN STATE LEGISLATORS WHO ATTENDED TWO INFORMAL MEETINGS WITH COMPANY OFFICIALS LAST JUNE IT SEEMED A PERFECTLY ACCEPTABLE PRACTICE TO PAY THEM AN HONORARIUM FOR SPENDING TIME WITH US SAYS RICHARD CLARK A MCDONALD SPOKESMAN AT LEAST ONE STATE REPRESENTATIVE RETURNED HIS CHECK TO MCDONALD BUT OTHERS INCLUDING WAYNE M. JONES CASHED THEIRS IT WAS LEGAL MR. JONES SAYS ADDING WE HAVE ABSOLUTELY NO CONTROL OVER AWARDING BOND ISSUES MR. JONES HOWEVER DOES SIT ON A LEGISLATURE FINANCE COMMITTEE MCDONALD'S ACTION WHICH WAS LAWFUL HAS CERTAINLY MADE WAVES IN OHIO LAST WEEK THE STATE LEGISLATURE PASSED A BILL PROHIBITING HONORARIUMS AND LIMITING GRATUITIES TO SEVENTY FIVE DOLLARS A YEAR FOR EACH LEGISLATOR GOVERNOR GEORGE V. VOINOVICH IS EXPECTED TO SIGN THE BILL INTO LAW SOON TREASURYS WERE PUSHED HIGHER ACROSS THE BOARD FRIDAY ON WORD THAT INFLATION PRESSURES WERE MINIMAL IN THE FOURTH QUARTER SOON AFTER THE COMMERCE DEPARTMENT REPORTED FOURTH QUARTER GROSS DOMESTIC PRODUCT FIGURES IN THE MORNING PRICES BEGAN SOARING PROFIT TAKING BY MIDAFTERNOON TOOK SOME OF THE GLOW OFF THE GAINS BUT NONETHELESS THE MARKET PUT IN AN IMPRESSIVE PERFORMANCE THE BENCHMARK THIRTY YEAR TREASURY BOND ROSE FIVE EIGHTHS POINT OR SIX DOLLARS AND TWENTY FIVE CENTS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO ONE HUNDRED AND THIRTEEN THIRTY SECONDS ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO SIX POINT TWO ONE PERCENT FROM SIX POINT TWO SIX PERCENT ON THURSDAY TRADERS AND INVESTORS BOTH IN THE U. S. AND ABROAD IGNORED THE STRONG FOURTH QUARTER GROSS DOMESTIC PRODUCT GROWTH RATE OF FIVE POINT NINE PERCENT TO CAST THEIR EYES ON INFLATION DATA WITHIN THE G. D. P. REPORT THE COMMERCE DEPARTMENT REPORTED THE FIXED PRICE DEFLATOR ROSE AT A RATE OF TWO POINT TWO PERCENT AND THE IMPLICIT PRICE DEFLATOR A MEASURE OF CONSUMER CONSUMPTION PATTERNS ROSE AT A RATE OF ONLY ONE POINT THREE PERCENT GROWTH WAS STRONG BUT WITHIN CONSENSUS AND THE MARKET REALLY ROARED ON THE LOW DEFLATOR DATA AND SORT OF RAN WITH THAT ALL DAY SAYS CARY LEAHEY SENIOR FINANCIAL MARKET ECONOMIST AT LEHMAN BROTHERS INCORPORATED IN DOING SO THE MARKET IGNORED SOME DATA THAT MAY INDICATE THAT FIRST QUARTER GROWTH WILL BE STRONGER THAN ANTICIPATED THE FOURTH QUARTER G. D. P. REPORT WASN'T BOOSTED AS MUCH AS EXPECTED BY INVENTORY REBUILDING MR. LEAHEY NOTED THAT BODES WELL FOR FIRST HALF GROWTH HE SAID IT'S INCREASINGLY KNOWN THAT SOME OF THE CLINTON ADMINISTRATION'S LEADING LIGHTS VERY MUCH ADMIRE GERMANY THE CAPITALIST WELFARE STATE THAT WORKS WELL USED TO MAYBE IT WOULD BE AN UNDERSTATEMENT TO SAY THAT THE ECONOMIC NEWS FROM GERMANY HASN'T BEEN GOOD RECENTLY WESTERN GERMANY'S UNEMPLOYMENT COULD REACH TEN PERCENT THIS YEAR THERE IS ENCOURAGING NEWS ON THE POLICY FRONT HOWEVER AT LEAST IT'S ENCOURAGING FROM OUR POLITICAL PERSPECTIVE SOME OF GERMANY'S LEADING FIGURES HAVE RECOGNIZED THAT IF THE COUNTRY IS TO COMPETE WITH ITS LESS PROSPEROUS NEIGHBORS TO THE SOUTH AND EAST SIGNIFICANT REFORMS MUST BE UNDERTAKEN THIS REPRESENTS THE FIRST MAJOR CRACK IN THE GENERAL UNWILLINGNESS TO BLAME THE WELFARE STATE FOR DRAGGING DOWN THE ECONOMY PROPOSALS IN THE GOVERNMENT'S QUOTE ACTION PROGRAM FOR MORE GROWTH AND JOBS QUOTE ARE FORTHRIGHT THE THIRTY POINT PLAN JUST ADOPTED IS A DUAL ACKNOWLEDGEMENT THAT THE GERMAN STATE CAN NO LONGER PROVIDE THE RANGE OF SOCIAL SERVICES IT OFFERED DURING THE COLD WAR ERA AND THAT ITS BURDENSOME REGULATION IS AN OBSTACLE TO GERMAN COMPETITIVENESS INCLUDED ARE CALLS FOR DEREGULATION PARTICULARLY IN HOUSING AND PRIVATIZATION OF SOME STATE OPERATIONS SUCH AS THE FINANCING CONSTRUCTION AND OPERATION OF STATE HIGHWAYS CHANCELLOR HELMUT KOHL SAYS THESE DECISIONS ARE ABSOLUTELY NECESSARY TO SAFEGUARD OUR FUTURE BOOSTING THE CREDIBILITY OF THE GOVERNMENT'S REFORMIST SPIRIT ARE OTHER RECENT ACTIONS NEARLY THREE BILLION DOLLARS IN SPENDING CUTS JUST AGREED TO FOLLOWING A DECEMBER ANNOUNCEMENT OF REDUCTIONS IN THE GOVERNMENT'S GENEROUS UNEMPLOYMENT BENEFITS AND CHILD SUPPORT PAYMENTS A FEDERAL PROGRAM THAT COMPENSATES CONSTRUCTION WORKERS WHEN BAD WEATHER PREVENTS THEM FROM WORKING WILL BE MODIFIED GERMANY'S BIGGEST ECONOMIC PROBLEM OF COURSE IS HIGH LABOR COSTS IN A RECENT INTERVIEW WITH THE HAMBURG NEWSPAPER BILD MR. KOHL CONCEDED WE ALL HAVE TO CHANGE OUR WAY OF THINKING NOW IN ORDER TO SECURE GERMANY AS A FUTURE LOCATION AND MAKE IT COMPETITIVE THE PROBLEM IS LABOR HAS BECOME TOO EXPENSIVE IN OUR COUNTRY THE GERMAN CHAMBER OF COMMERCE AND INDUSTRY REPORTED IN NOVEMBER THAT CLOSE TO ONE IN THREE OF THE COUNTRY'S MANUFACTURERS WERE EXPECTING TO TRANSFER PARTS OF THEIR OPERATIONS OUT OF THE COUNTRY SO THE WELFARE STATE THAT WORKS IS BEING RE ENGINEERED WE HOPE THE ADMINISTRATION'S ADMIRERS OF THE OLD MODEL WILL CHECK IT OUT LESS THAN A MONTH FROM NOW KEYCORP AND SOCIETY CORPORATION SHAREHOLDERS WILL CAST VOTES ON THE PROPOSED MERGER OF THE TWO BANKING COMPANIES IF ALL GOES AS PLANNED THEY WILL CREATE KEY BANCSHARES THE TENTH LARGEST BANKING CHAIN IN THE NATION USUALLY SUCH A VOTE WOULD RESULT IN THE ROUTINE ENDORSEMENT OF THE PROPOSAL BUT THIS CASE HAS ATTRACTED WALL STREET'S ATTENTION BECAUSE KEYCORP MUST CLEAR SOME HURDLES THAT THREATEN TO TRIP UP THE TRANSACTION AND IT HAS INDUSTRY EXECUTIVES INTERESTED BECAUSE THE OUTCOME COULD HELP SHAPE THE COURSE OF BANK MERGERS AND ACQUISITIONS TO COME QUOTE THE KEY VOTE IS THE KEY VOTE QUOTE SAID THOMAS MCCANDLESS AN ANALYST AT PAINEWEBBER INCORPORATED THAT'S BECAUSE THE MERGER NEEDS THE APPROVAL OF HOLDERS OF TWO THIRDS OF KEYCORP'S STOCK AT A SPECIAL MEETING FEBRUARY SIXTEENTH INSTEAD OF THE SIMPLE MAJORITY TYPICALLY REQUIRED KEYCORP WITH HEADQUARTERS IN ALBANY N. Y. AND THIRTY THREE BILLION DOLLARS IN ASSETS IS CHARTERED AS A CORPORATION IN THE STATE AND IS REQUIRED UNDER STATE LAW TO GARNER THE HIGHER LEVEL OF VOTES SOCIETY A TWENTY SIX BILLION DOLLAR ASSET BANK HOLDING COMPANY BASED IN CLEVELAND IS HOLDING A SPECIAL SHAREHOLDERS MEETING ON THE SAME DAY IN WHICH IT IS REQUIRED TO WIN ONLY A MAJORITY OF VOTES SINCE INDIVIDUALS ARE A LARGE PERCENTAGE OF KEYCORP'S STOCKHOLDER BASE ABOUT FORTY EIGHT PERCENT AND BECAUSE UNCAST BALLOTS WILL BE CONSIDERED NO VOTES KEYCORP IS SEEN AS HAVING TO PULL OUT ALL THE STOPS TO CONVINCE BOTH INSTITUTIONAL AND INDIVIDUAL SHAREHOLDERS THAT THE MERGER SHOULD BE SANCTIONED FOR THE PAST TWO WEEKS KEYCORP AND SOCIETY EXECUTIVES HAVE BEEN ON THE ROAD AND ON THE TELEPHONE PEDDLING THE MERITS OF THE MERGER TO INSTITUTIONAL HOLDERS A SIGN SOME SAY OF NERVOUSNESS THAT THE VOTE COULD GO AGAINST THEM ADDING TO THE CONCERN IS SPECULATION THAT SOME INSTITUTIONAL HOLDERS HAVE EITHER HELD ON TO THE SHARES SINCE THE PROPOSAL WAS PUT FORTH OCTOBER FOURTH OR TAKEN POSITIONS BEFORE THE RECORD DATE OF DECEMBER TWENTY EIGHTH TO SEND IT DOWN AND THE STOCK UP IF THE MERGER PLAN IS DEFEATED THE COMPANY WOULD BE SEEN AS A TAKEOVER TARGET AND THE STOCK PUT IN PLAY SECURITIES ANALYSTS SAID INDEED LONG BEFORE THE MERGER WAS PROPOSED MANY INVESTORS WERE LURED TO KEYCORP ON THE BET THAT CHAIRMAN AND CHIEF EXECUTIVE VICTOR J. RILEY WOULD CASH OUT AND PUT THE COMPANY UP FOR SALE AS HE DREW CLOSER TO RETIREMENT AGE WITHOUT HAVING PICKED A SUCCESSOR WHEN MR. RILEY OPTED TO HITCH UP WITH SOCIETY IN A MERGER OF EQUALS TRANSACTION INSTEAD MANY HOLDERS WERE DISAPPOINTED THAT THEY WOULDN'T RECEIVE AN IMMEDIATE PREMIUM FOR THEIR SHARES BUT WOULD HAVE TO WAIT FOR ANY ADDED VALUE TO MATERIALIZE MERGERS OF EQUALS TRANSACTIONS TEND TO BE VIEWED SKEPTICALLY BECAUSE OFTEN THE INTEGRATION OF THE COMPANIES GETS BOGGED DOWN THROWING COST REDUCTION AND EARNINGS GROWTH TARGETS OFF TRACK DONALD KAUTH A SPOKESMAN FOR KEYCORP SAID THE COMPANY IS CONFIDENT IT WILL WIN THE SUPPORT OF SHAREHOLDERS BIG AND SMALL WE THINK WE'RE GOING TO GET IT HE SAID WE HAVEN'T HEARD THAT HOLDERS WILL VOTE AGAINST IT BUT SOUNDING A NOTE OF CAUTION MR. KAUTH ADDED YOU FIND OUT HOW THEY'RE GOING TO VOTE WHEN THEY ACTUALLY VOTE MR. KAUTH HOWEVER THINKS THAT HOLDERS WHO DISAPPROVE OF THE MERGER HAVE PROBABLY ALREADY LEFT THE STOCK EVEN THE PRESENCE OF HEDGE FUND MANAGER MICHAEL STEINHARDT WHO BOUGHT ONE POINT ONE MILLION SHARES IN THE THIRD QUARTER DOESN'T RUFFLE KEYCORP MR. KAUTH SAID QUOTE AS FAR AS WE CAN TELL THEY'RE IN THIS BECAUSE OF THE FUNDAMENTALS QUOTE MR. STEINHARDT COULDN'T BE REACHED FOR COMMENT THE COMPANY'S LARGEST INSTITUTIONAL SHAREHOLDER DELAWARE MANAGEMENT COMPANY HAS ALREADY VOTED FOR THE MERGER SAID ROBERT ARNOLD A BANK ANALYST AT THE PHILADELPHIA BASED MONEY MANAGEMENT FIRM DELAWARE WAS PERSUADED TO VOTE IN FAVOR OF THE MERGER ONLY AFTER KEYCORP AND SOCIETY EXECUTIVES CAME CALLING JANUARY TENTH MR. ARNOLD SAID THEY REALLY DID A GOOD JOB OF EXPLAINING WHY THE MERGER MADE STRATEGIC SENSE HE SAID THAT WAS A PIVOTAL MEETING FOR US WE WERE ON THE BORDER AND WE TURNED VERY FAVORABLE AFTER THAT MR. ARNOLD NOTED THAT THE TWO BANKS HAVE DISTINCT STRENGTHS KEYCORP IN CONSUMER BANKING AND SOCIETY IN TRUST SERVICES THAT CAN PLAY TO EACH OTHER'S CUSTOMER BASES AND LEAD PERHAPS TO MEANINGFUL REVENUE GROWTH I THINK THIS IS A HUGE ADVANTAGE IN THIS MERGER HE SAID EVEN MORE IMPRESSIVE MR. ARNOLD SAID IS THE COMPATIBILITY OF THE TWO COMPANIES' BACK OFFICE TECHNOLOGY THE OVERLAP LARGELY REMOVES AN EXPENSE TYPICALLY ASSOCIATED WITH SUCH MERGERS AND SPEEDS ALONG THE INTEGRATION I HAVE A FEELING IF THIS MERGER SUCCEEDS IT'S GOING TO CHANGE THE COURSE OF THE BANK M. AND A GAME FOREVER MR. ARNOLD SAID BASED ON CONVERSATIONS WITH INDUSTRY EXECUTIVES QUOTE IF IT SUCCEEDS WE'RE GOING TO SEE A LOT OF MERGERS OF EQUALS QUOTE MR. ARNOLD ALSO CONFIRMED THAT DELAWARE ADDED TO ITS KEYCORP POSITION IN THE FOURTH QUARTER ON HIS RECOMMENDATION THE SHARES HAD BECOME EXTREMELY UNDERVALUED BASED ON PROJECTED EARNINGS AND PRICE TO BOOK VALUE HE SAID FAB INDUSTRIES INCORPORATED FUELED BY STRONGER VOLUME IN HIGHER MARGIN PRODUCTS EXPECTS TO POST FISCAL FOURTH QUARTER EARNINGS THAT ARE QUOTE A LOT BETTER QUOTE THAN A YEAR EARLIER SAMSON BITENSKY CHAIRMAN SAID IN AN INTERVIEW MR. BITENSKY WHO IS ALSO PRESIDENT OF THE TEXTILE COMPANY SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT PUT FAB EARNINGS AT ABOUT SEVENTY FIVE CENTS A SHARE OR A TOTAL OF ABOUT FOUR POINT SEVEN MILLION DOLLARS FOR THE QUARTER ENDED NOVEMBER THIRTIETH THAT WOULD BE AN INCREASE OF ABOUT NINETEEN PERCENT FROM A YEAR BEFORE WHEN NET INCOME WAS SIXTY THREE CENTS A SHARE OR FOUR MILLION DOLLARS SALES ROSE SEVEN POINT FOUR PERCENT TO ABOUT FORTY SIX MILLION DOLLARS FROM FORTY TWO POINT EIGHT MILLION DOLLARS FOR THE YEAR MR. BITENSKY IS COMFORTABLE WITH ESTIMATES THAT FAB'S EARNINGS ROSE TO ABOUT SEVENTEEN MILLION DOLLARS OR TWO DOLLARS AND SEVENTY FOUR CENTS A SHARE FROM SIXTEEN POINT NINE MILLION DOLLARS OR TWO DOLLARS AND SIXTY FIVE CENTS A SHARE SALES WERE FLAT AT ABOUT ONE HUNDRED NINETY MILLION DOLLARS EARNINGS AND SALES DECLINED IN FISCAL NINETEEN NINETY THREE'S FIRST HALF BUT MR. BITENSKY IS SEEING AN UPTREND THAT STARTED IN THE THIRD QUARTER FAB MAKES TEXTILES MOSTLY FOR THE APPAREL INDUSTRY AS RETAIL SALES SLOWED BECAUSE OF CONSUMER UNCERTAINTY OVER THE ECONOMY SO DID FAB'S SALES MR. BITENSKY SAID SO FAR THIS YEAR THE FIRST QUARTER LOOKS BETTER THAN LAST YEAR IN SALES AND PROFITS MR. BITENSKY SAID HE IS LOOKING FOR FIRST QUARTER SALES TO INCREASE ABOUT TEN PERCENT FROM THE THIRTY EIGHT POINT SIX MILLION DOLLARS OF A YEAR AGO AND FOR FIRST QUARTER EARNINGS TO RISE TO AT LEAST TWO POINT EIGHT MILLION DOLLARS OR FORTY FIVE CENTS A SHARE FROM THE YEAR AGO TWO POINT THREE MILLION DOLLARS OR THIRTY SEVEN CENTS A SHARE FAB IS LOOKING TO EXPAND BOTH INTERNALLY AND THROUGH ACQUISITION TO ROUND US OUT I WOULD LIKE TO FIND A MIDSIZE SPECIALTY WEAVING COMPANY WITH GOOD MANAGEMENT MR. BITENSKY SAID HIS GOAL IS TO ADD ONE HUNDRED MILLION DOLLARS IN SALES OVER THE NEXT FOUR OR FIVE YEARS FAB HAS CASH IN INVESTMENTS OF ABOUT SIXTY TWO MILLION DOLLARS AND NO LONG TERM DEBT THE EXECUTIVE ALSO SAID THAT ASSUMING THE DOLLAR CONTINUES TO STRENGTHEN AGAINST THE MARK HE PLANS TO INCREASE CAPITAL SPENDING TO SEVEN MILLION DOLLARS TO EIGHT MILLION DOLLARS THIS YEAR FROM THE FOUR POINT NINE MILLION DOLLARS OF A YEAR AGO FAB BUYS MOST OF ITS EQUIPMENT FROM GERMANY OR JAPAN THE ECONOMY'S EXTREMELY STRONG PERFORMANCE IN LAST YEAR'S FOURTH QUARTER HAS RAISED EXPECTATIONS ABOUT THIS YEAR'S FIRST HALF THE COMMERCE DEPARTMENT SAID ECONOMIC GROWTH SHOT UP AT AN ANNUAL RATE OF FIVE POINT NINE PERCENT IN THE DECEMBER QUARTER WHILE INFLATION STAYED WELL IN CHECK THAT'S THE BEST PERFORMANCE THE ECONOMY HAS TURNED IN SINCE THE FOURTH QUARTER OF NINETEEN EIGHTY SEVEN THREE YEARS BEFORE THE COUNTRY SLIPPED INTO RECESSION GROWTH WAS ENTIRELY IN THE PRIVATE SECTOR AS GOVERNMENT SPENDING CONTINUED TO SHRINK FOR THE YEAR GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE U. S. EXPANDED TWO POINT NINE PERCENT UP FROM TWO POINT SIX PERCENT IN NINETEEN NINETY TWO BUT MORE IMPORTANT THAN WHAT THAT STRONG GROWTH SAYS ABOUT A QUARTER THAT IS NOW HISTORY IS WHAT IT SUGGESTS ABOUT THE REST OF THIS YEAR AND THOUGH ALMOST NO ONE EXPECTS GROWTH TO KEEP UP THE BREAKNECK PACE OF THE FOURTH QUARTER SOME ANALYSTS SEEM TO BE VERY ENCOURAGED THAT THE ECONOMY MAY BE A BIT STRONGER THAN PEOPLE HAVE GENERALLY THOUGHT THE SURPRISINGLY UPBEAT ECONOMIC REPORT SENT STOCK AND BOND PRICES HIGHER ON FRIDAY THE DOW JONES INDUSTRIAL AVERAGE SHOT UP NINETEEN POINT ONE THREE POINTS TO THREE THOUSAND NINE HUNDRED FORTY FIVE POINT FOUR THREE ITS SECOND STRAIGHT RECORD LAST WEEK TREASURY BOND PRICES ROSE ACROSS THE BOARD PRIMARILY BECAUSE THE ECONOMY'S SURGE WAS ACCOMPANIED WITH MINIMAL INFLATION JIM MEIL CHIEF ECONOMIST OF EATON CORPORATION A MAKER OF AUTO PARTS IN CLEVELAND SAID THAT ON THURSDAY HE PUT THE PROBABILITY OF FOUR PERCENT PLUS GROWTH IN NINETEEN NINETY FOUR AT ABOUT ONE IN FIVE ON FRIDAY AFTER HE HAD SEEN THE DETAILS OF ECONOMIC GROWTH IN THE FOURTH QUARTER HE SAID THE PROBABILITY OF FOUR PERCENT PLUS GROWTH WAS ROUGHLY THIRTY THREE PERCENT MR. MEIL'S FORECAST IS FOR GROWTH AT A THREE POINT FIVE PERCENT ANNUAL RATE IN THE FIRST QUARTER AND A THREE PERCENT PACE IN THE SECOND QUOTE IT MAY BE THAT THIS ECONOMY HAS STRONGER LEGS THAN WE HAVE GIVEN IT CREDIT FOR QUOTE SAID ROBERT DEDERICK CHIEF ECONOMIST OF NORTHERN TRUST IN CHICAGO MORE IMPORTANT THAN THE MOOD OF ECONOMISTS HOWEVER IS THAT CONSUMERS ACTUALLY SEEM TO BELIEVE THINGS ARE GETTING BETTER TO STAY THE UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT INDEX IS SAID TO HAVE RISEN TO NINETY FOUR POINT THREE PERCENT IN JANUARY FROM EIGHTY EIGHT POINT TWO PERCENT IN DECEMBER THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX HAS BEEN RISING SINCE OCTOBER BUSINESSES ARE A BIT MORE UPBEAT TOO WE SEE BUSINESS AS BEING STRONG THROUGHOUT THE ENTIRE INDUSTRIAL SECTOR AND EXPECT IT TO STAY THAT WAY FOR THE NEXT SIX TO EIGHT MONTHS SAID PATRICK PARKER CHAIRMAN OF PARKER HANNIFIN CORPORATION WHICH SUPPLIES MAJOR COMPONENTS TO INDUSTRIAL EQUIPMENT COMPANIES MR. PARKER SAYS THE INDUSTRIAL SIDE OF HIS COMPANY IS UP FIFTEEN PERCENT FROM YEAR AGO LEVELS THE ECONOMY SEEMS A LITTLE MORE PREDICTABLE AND SUSTAINABLE SAID DAVID FREEMAN CHIEF EXECUTIVE OF LOCTITE CORPORATION AN ADHESIVE COMPANY IN HARTFORD CONNECTICUT WE NOW SEE ONE STEP FORWARD AND NO STEPS BACK THE GROWTH IN THE FOURTH QUARTER WAS STRONG IN AREAS WHERE LOW INTEREST RATES TEND TO PLAY A BIG PART HOUSING INVESTMENT ROSE AT A HUGE THIRTY ONE POINT SEVEN PERCENT ANNUAL RATE IN THE FOURTH QUARTER CONSUMER SPENDING ON DURABLE GOODS SUCH AS CARS AND FURNITURE FOR THEIR NEW HOMES SHOT UP AT A FOURTEEN POINT FOUR PERCENT PACE BUSINESS INVESTMENT IN CAPITAL EQUIPMENT ROSE AT A TWENTY FOUR POINT SIX PERCENT RATE AND AFTER A DEEP SLUMP INVESTMENT IN COMMERCIAL BUILDINGS WAS UP AT A TEN POINT SEVEN PERCENT ANNUAL PACE DURING THE QUARTER THERE IS MOUNTING EVIDENCE THAT GROWTH WILL STAY AT A FAIRLY REASONABLE PACE IN THE FIRST PART OF NINETEEN NINETY FOUR AND NOT PETER OUT AS IT DID IN THE FIRST PART OF LAST YEAR FOR ONE THING HOME SALES AND HOUSING STARTS CLOSED OUT THE YEAR STRONGLY SUGGESTING THAT RESIDENTIAL CONSTRUCTION WILL REMAIN FAIRLY UPBEAT THIS YEAR ALSO DOMESTIC AUTO MAKERS HAVE SAID THEY PLAN ANOTHER INCREASE IN CAR ASSEMBLIES DURING THE FIRST QUARTER COMMERCE DEPARTMENT CHIEF ECONOMIST LEWIS ALEXANDER SAID THAT RECENT SURVEYS SUGGEST BUSINESS INVESTMENT IN CAPITAL EQUIPMENT IS LIKELY TO STAY STRONG AND THAT RISING STOCK PRICES SHOULD HELP CAPITAL INVESTMENT AS WELL WHAT IS VERY EXCITING ABOUT THE NEW GROWTH IN THE ECONOMY IS THAT IT HAS BEEN ACCOMPANIED BY RELATIVELY LITTLE IN THE WAY OF PRICE INCREASES THE FIXED WEIGHT PRICE INDEX THE BROADEST MEASURE OF INFLATION ROSE AT ONLY A TWO POINT TWO PERCENT ANNUAL RATE IN THE FOURTH QUARTER THE SAME AS IN THE THIRD PERIOD WHEN THE ECONOMY GREW AT A MORE SLUGGISH TWO POINT NINE PERCENT RATE WHAT ECONOMISTS ARE WONDERING ABOUT IS THE EFFECT THE LOS ANGELES EARTHQUAKE AND THE WINTRY WEATHER WILL HAVE ON ECONOMIC ACTIVITY IN THE FIRST QUARTER LAURA TYSON WHO HEADS THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS SAID THE EARTHQUAKE WILL PROBABLY HAVE A NEGATIVE EFFECT ON THE ECONOMY THE EFFECT OF THE WEATHER SHE SAID WAS HARDER TO CALL WE CAN MAKE UP OUR SPENDING FROM ONE WEEK IN ICE BOUND HOUSES BUT IF IT'S TWO OR THREE OR FOUR WEEKS IT GETS HARDER TO MAKE UP DURING THE QUARTER MS. TYSON SAID THE COLD WEATHER WILL UNDOUBTEDLY BUMP UP INDUSTRIAL PRODUCTION AND CAPACITY USE AT UTILITIES EXPORTS ROSE AT A STRONG FOURTEEN POINT SEVEN PERCENT ANNUAL RATE IN THE FOURTH QUARTER EVEN THOUGH MANY LARGE U. S. TRADING PARTNERS ARE STILL HAVING ECONOMIC DIFFICULTIES THE TRADE GAP WORSENED AGAIN HOWEVER BECAUSE IMPORTS GREW AT A FASTER PACE ANALYSTS EXPECT EXPORTS TO IMPROVE IN NINETEEN NINETY FOUR THE WORLD IN WHICH WE SELL OUR EXPORTS WILL EXPAND AT A FASTER CLIP IN NINETEEN NINETY FOUR THAN IT DID IN NINETEEN NINETY THREE MS. TYSON SAID ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT NINETEEN EIGHTY SEVEN DOLLARS FROM ONE POINT SIX PERCENT IN THE PREVIOUS QUARTER CONTINENTAL AIRLINES WILL NEARLY TRIPLE THE NUMBER OF SHORT LOW FARE FLIGHTS IT FLIES EVERY DAY MAKING THE HOUSTON BASED COMPANY THE ONLY AIRLINE TO OPERATE HALF ITS FLIGHTS WITH CHEAP FREQUENT SERVICE AND THE REST WITH MORE TRADITIONAL LONG HAUL FLIGHTS CONTINENTAL IS EXPECTED TO ANNOUNCE TODAY THAT IT WILL EXPAND ITS LOW FARE CALITE SERVICE AS OF MARCH NINTH TO ABOUT EIGHT HUNDRED SEVENTY FIVE DAILY FLIGHTS FROM THE CURRENT THREE HUNDRED THAT IS THE SAME DAY THE AIRLINE IS ELIMINATING ABOUT A THIRD OF ITS SERVICE OUT OF ITS DENVER HUB CONTINENTAL NOW HAS ABOUT ONE THOUSAND FOUR HUNDRED FLIGHTS A DAY PEOPLE FAMILIAR WITH THE COMPANY SAY CONTINENTAL EVENTUALLY IS LIKELY TO MAKE STILL MORE OF ITS FLIGHTS PART OF THE CALITE OPERATION AMONG THE CITIES TO RECEIVE CALITE SERVICE IN MARCH WILL BE INDIANAPOLIS CLEVELAND AND DAYTON OHIO SAN ANTONIO PENSACOLA FLORIDA AND CONTINENTAL'S BIG HUB HOUSTON CALITE SERVICE ALSO WILL BE INITIATED TO CHICAGO'S MIDWAY AIRPORT WHERE SOUTHWEST AIRLINES HAS MOST OF THE FLIGHTS WHILE MOST OF THE CALITE DESTINATIONS ARE CITIES CONTINENTAL ALREADY SERVES SEVERAL OF THEM ARE MARKETS WHERE DALLAS BASED SOUTHWEST IS A POWERFUL COMPETITOR SOUTHWEST IS THE INDUSTRY'S ONLY CONSISTENTLY PROFITABLE AIRLINE AND ITS CONTINUED SUCCESS HAS MADE IT THE CARRIER DOZENS OF OTHER AIRLINES SEEK TO EMULATE IT'S TOO SOON TO SAY WHETHER CALITE WILL OPERATE PROFITABLY LAST FALL THE COMPANY SAID CALITE OPERATIONS WERE AHEAD OF ITS FORECASTS BUT WEREN'T YET IN THE BLACK NEVERTHELESS ALMOST EVERY U. S. AIRLINE IS TRYING TO REMAKE ITSELF IN SOUTHWEST'S LOW FARE IMAGE A PIVOTAL PART OF U. A. L. CORPORATION'S UNITED AIRLINES EMPLOYEE BUYOUT APPROVED BY THE COMPANY'S UNIONS LAST WEEK HINGES ON THE DEVELOPMENT OF A LOW COST OPERATION DELTA AIR LINES ALSO HAS APPOINTED A COMMITTEE TO LOOK INTO A SIMILAR SERVICE DOZENS OF TINY START UPS RANGING FROM KIWI AIRLINES IN NEWARK N. J. TO VALUJET AIRLINES IN ATLANTA MODEL THEMSELVES ON SOUTHWEST HAVING EMERGED FROM CHAPTER ELEVEN BANKRUPTCY COURT PROTECTION LAST APRIL WITH VASTLY LESS DEBT AND HAVING LOOSER UNION RESTRICTIONS THAN ITS BIG CARRIER RIVALS CONTINENTAL HAS BEEN ABLE TO PLUNGE AHEAD WITH CALITE WHILE ITS RIVALS MERELY MAKE PLANS CALITE STARTED UP LAST OCTOBER WITH SEVERAL DOZEN DAILY FLIGHTS AND GRADUALLY INCREASED THE NUMBER TO SLIGHTLY MORE THAN THREE HUNDRED PRIMARILY IN THE SOUTHEAST AND MIDDLE ATLANTIC STATES WHERE SOUTHWEST DOESN'T FLY AND WHERE HIGH COST U. S. AIR GROUP INCORPORATED WAS A TARGET WAITING FOR COMPETITION WHAT ALL THESE AIRLINES ARE TRYING TO DO IS KEEP COSTS LOW AS SOUTHWEST DOES THE CARRIER WHICH IS UNIONIZED AND HAS WAGE RATES ROUGHLY COMPARABLE TO OTHER AIRLINES IS ABLE TO CONTROL COSTS BECAUSE ITS WORK RULES ARE FAR MORE LIBERAL THAN THOSE AT OTHER AIRLINES AND BECAUSE IT ESCHEWS THE HUB AND SPOKE SYSTEM SOUTHWEST FLIGHTS ALSO ARE TURNED AROUND LOADED AND BOARDED WITHIN FIFTEEN MINUTES OF LANDING AND THUS SPEND MORE TIME IN THE AIR FERRYING PASSENGERS ISRAEL P. L. O. TALKS APPEARED TO CLEAR HURDLES ON PALESTINIAN SELF RULE ISRAEL AND THE P. L. O. WILL REACH A FINAL AGREEMENT QUOTE VERY SOON QUOTE FOR ISRAEL'S WITHDRAWAL FROM THE GAZA STRIP AND JERICHO P. L. O. CHAIRMAN ARAFAT SAID AFTER MARATHON TALKS WITH ISRAELI FOREIGN MINISTER PERES IN DAVOS SWITZERLAND BUT THE TWO MEN FAILED TO BREAK A DEADLOCK IN THEIR NEGOTIATIONS ON IMPLEMENTING PALESTINIAN AUTONOMY IN THE OCCUPIED TERRITORIES SAYING THEY WOULD NEED TO MEET AGAIN IN CAIRO NEXT WEEK EGYPT'S FOREIGN MINISTER SAID THE MAJOR HURDLES HAD BEEN CLEARED NEITHER ARAFAT NOR PERES WOULD SAY WHICH MATTERS WERE UNRESOLVED ONE REMAINING ISSUE ACCORDING TO THE EGYPTIAN FOREIGN MINISTER IS THE SIZE OF THE WEST BANK TOWN OF JERICHO JAPAN'S HOSOKAWA WON PROVISIONAL APPROVAL FOR SWEEPING ELECTORAL REFORMS THE PRIME MINISTER'S WEEKEND VICTORY CAPPED AN INTENSE WEEK OF NEGOTIATIONS IN WHICH HE PUT HIS POLITICAL FUTURE AT RISK THE REFORM PROPOSALS WERE ADOPTED ONLY AFTER A LAST MINUTE BARGAIN WITH THE RELUCTANT OPPOSITION THE DATE OF IMPLEMENTATION HASN'T YET BEEN SET HOWEVER WITH FORMAL LEGISLATIVE APPROVAL OF THE COMPROMISE PLAN STILL REQUIRED WASHINGTON OFFICIALS CHEERED HOSOKAWA'S VICTORY HOPING HE NOW CAN TURN HIS ATTENTION TO THE STALLED U. S. JAPAN TRADE TALKS JAPANESE NEWSPAPERS REPORTED THAT THE CABINET WOULD APPROVE AS SOON AS THIS WEEK AN ECONOMIC PACKAGE THAT WOULD INCLUDE INCOME TAX CUTS A BOSNIAN SERB COMMANDER WARNED THE WEST NOT TO USE FORCE TO OPEN THE MUSLIM AIRPORT AT TUZLA SAYING ANY PLANE THAT LANDED THERE WOULDN'T BE ALLOWED TO LEAVE IN BELGRADE RUSSIAN ULTRANATIONALIST ZHIRINOVSKY SAID HIS PARTY WOULD CONSIDER ANY NATO AIR STRIKES AGAINST BOSNIAN SERBS TO BE A DECLARATION OF WAR AGAINST RUSSIA RUSSIA'S PRIME MINISTER VOWED THAT EFFORTS TO FIGHT INFLATION WERE HIS GOVERNMENT'S TOP PRIORITY FINANCIAL STABILIZATION IS AT THE CENTER OF OUR ENTIRE POLICY CHERNOMYRDIN TOLD WORLD BUSINESS LEADERS AT THE ANNUAL WORLD ECONOMIC FORUM IN SWITZERLAND MADISON GUARANTY EMPLOYEES CONTEND THAT AN EXECUTIVE OF THE S. AND L. PROMISED THEY WOULD BE REIMBURSED FOR CONTRIBUTIONS MADE AT AN APRIL NINETEEN EIGHTY FIVE FUND RAISER FOR THEN ARKANSAS GOVERNOR CLINTON THE EVENT WAS INTENDED TO HELP CLINTON PAY OFF A NINETEEN EIGHTY FOUR CAMPAIGN DEBT NORTH KOREA DENOUNCED U. S. PLANS TO SEND PATRIOT AIR DEFENSE MISSILE BATTERIES TO SOUTH KOREA DECLARING THAT SUCH A STEP WOULD BE A WARLIKE MOVE PYONGYANG SAID THE U. S. WOULD HAVE TO SCRAP ITS PLANS IF WASHINGTON HOPES TO REACH AN ACCORD TO PERMIT INSPECTIONS OF THE NORTH'S NUCLEAR SITES IRISH ACTIVIST GERRY ADAMS WAS GRANTED A U. S. VISA TO ATTEND A NEW YORK CONFERENCE ON NORTHERN IRELAND TOMORROW THE WHITE HOUSE SAID ADAMS IS HEAD OF THE POLITICAL WING OF THE IRISH REPUBLICAN ARMY A PRO RUSSIAN SECESSIONIST APPEARED TO BE THE VICTOR IN A PRESIDENTIAL RUNOFF ELECTION IN UKRAINE'S AUTONOMOUS REPUBLIC OF CRIMEA WITH VOTE COUNTING STILL UNDER WAY THE APPARENT VICTOR WAS YURI MESHKOV WHO CAMPAIGNED ON A PLEDGE FOR CRIMEA TO REJOIN RUSSIA THE AFRICAN NATIONAL CONGRESS OFFERED TO LET SOUTH AFRICA'S PRO APARTHEID WHITES VOTE FOR THEIR OWN HOMELAND BUT SAID A BLACK GOVERNMENT WOULD RETAIN THE POWER TO VETO RESULTS OF ANY SUCH VOTE AN ARMY BACKED COMMITTEE CHOSE ALGERIA'S HARD LINE DEFENSE MINISTER TO BE PRESIDENT TIGHTENING THE MILITARY'S CONTROL OVER ALGERIA LAMINE ZEROUAL NAMED TO SUCCEED AN UNELECTED FIVE MAN GROUP IS SUPPOSED TO LEAD THE NATION BACK TO DEMOCRACY THE DALLAS COWBOYS WON THE NATIONAL FOOTBALL LEAGUE'S SUPER BOWL IN ATLANTA DEFEATING THE BUFFALO BILLS THIRTY TO THIRTEEN PETE SAMPRAS OF THE U. S. WON THE AUSTRALIAN OPEN MEN'S SINGLES TENNIS TITLE DEFEATING FELLOW AMERICAN TODD MARTIN IN STRAIGHT SETS ON SATURDAY STEFFI GRAF OF GERMANY WON THE WOMEN'S TITLE BY BEATING ARANTXA SANCHEZ VICARIO OF SPAIN IN STRAIGHT SETS DIED WILLIAM J. LEVITT EIGHTY SIX NEW YORK DEVELOPER WHO PIONEERED THE IDEA OF AFFORDABLE SUBURBAN HOUSES WITH THE CONSTRUCTION OF LEVITTOWN ON LONG ISLAND FRIDAY IN MANHASSET N. Y. OF KIDNEY FAILURE WHEN MORIHIRO HOSOKAWA DIES ACCORDING TO AN ADVISER THE JAPANESE PRIME MINISTER EXPECTS TO GO TO HEAVEN AND JOIN THE MEN WHO FOUNDED THE NATION'S GOVERNMENT CENTURIES AGO QUOTE WHY ARE YOU HERE QUOTE JAPAN'S PATRIARCHS WILL ASK MR. HOSOKAWA'S RESPONSE ACCORDING TO THE AIDE BECAUSE I CHANGED JAPAN MR. HOSOKAWA HAS MADE A GREAT LEAP FORWARD IN CHANGING JAPAN BY WINNING PROVISIONAL APPROVAL THIS WEEKEND FOR SWEEPING ELECTORAL REFORM MR. HOSOKAWA IS PRESIDING OVER THE START OF THE MOST RADICAL SHAKE UP IN JAPANESE POLITICS IN FOUR DECADES THE VICTORY CAPPED AN INTENSE WEEK OF NEGOTIATIONS IN WHICH MR. HOSOKAWA PUT HIS POLITICAL FUTURE AT RISK THE REWARD A WEEKEND TELEVISION POLL GAVE THE PREMIER A SEVENTY NINE PERCENT PUBLIC APPROVAL RATING BUOYED BY SUCH POPULARITY MR. HOSOKAWA NOW HAS A STRONGER MANDATE TO FOCUS ON OTHER MATTERS INCLUDING NEXT MONTH'S SUMMIT WITH PRESIDENT CLINTON AND LONG DELAYED ACTION TO STIMULATE JAPAN'S SLUGGISH ECONOMY MR. HOSOKAWA'S VICTORY BOOSTED THE NIKKEI STOCK AVERAGE WHICH ON MONDAY SOARED NINE HUNDRED SIXTY FOUR POINT SIX NINE POINTS OR FIVE PERCENT TO CLOSE THE MORNING SESSION AT NINETEEN THOUSAND SEVEN HUNDRED TWENTY TWO POINT FIVE SEVEN THE MARKET SANK LAST WEEK IN FEAR OF FAILURE MR. HOSOKAWA'S CABINET HAD PUT ECONOMIC POLICY ON HOLD DURING THE REFORM BATTLE MEASURES TO SPUR BUSINESS ACTIVITY CAN'T COME TOO SOON PETER MORGAN AN ECONOMIST AT MERRILL LYNCH IN TOKYO ESTIMATES THAT JAPAN'S GROSS DOMESTIC PRODUCT SHRANK AT AN ANNUAL RATE OF FOUR POINT TWO PERCENT IN THE OCTOBER TO DECEMBER QUARTER HE THINKS A TEN TRILLION YEN STIMULUS PACKAGE WOULD ADD AS MUCH AS ONE POINT EIGHT PERCENTAGE POINTS OF GROWTH TO THE ECONOMY THE SOONER THE GOVERNMENT ANNOUNCES THE PACKAGE THE MORE IMPACT IT WILL HAVE SAID YOSHIO NAKAMURA AN ECONOMIST WITH KEIDANREN JAPAN'S LEADING BIG BUSINESS LOBBY U. S. OFFICIALS MEANWHILE PRIVATELY CHEERED MR. HOSOKAWA'S VICTORY HOPING HE NOW CAN TURN HIS ATTENTION TO STALLED U. S. JAPAN TRADE TALKS JAPANESE GOVERNMENT OFFICIALS SAY THAT MR. HOSOKAWA HAS SO FAR VIRTUALLY IGNORED THE PREPARATIONS FOR THE FEBRUARY ELEVENTH WASHINGTON SUMMIT LEAVING THE NEGOTIATIONS TO JAPAN'S BUREAUCRATS U. S. OFFICIALS HOPE MR. HOSOKAWA WILL START TWISTING THE ARMS OF JAPAN'S NEGOTIATORS MAKING THEM MORE RECEPTIVE TO U. S. DEMANDS BUT MR. HOSOKAWA AND OTHER LEADERS ARE HARDLY STRIKING A CONCILIATORY TONE WE'D LIKE TO TAKE MEASURES THAT ARE AS BOLD AS POSSIBLE TO COOPERATE WITH THE U. S. ON THE MACRO LEVEL MR. HOSOKAWA SAID AT A NEWS CONFERENCE SATURDAY ON THE MICRO LEVEL THERE ARE STILL CONFLICTS ON BASIC POINTS MR. HOSOKAWA ADDED THAT ON SUCH POINTS WE HAVE TO TELL THE U. S. FIRMLY WHERE OUR COUNTRY STANDS MR. HOSOKAWA MAY NEED EVERY BIT OF HIS BOLSTERED STRENGTH AS HE TACKLES THESE ISSUES AS WELL AS THE DETAILS OF POLITICAL REFORM THE LAWS AIMED AT CLEANING UP JAPAN'S NOTORIOUS MONEY POLITICS WERE ADOPTED ONLY AFTER A LAST MINUTE BARGAIN WITH THE RELUCTANT OPPOSITION AND EVEN SUCH MEASURES AS AN INCOME TAX CUT COULD PROVE TROUBLESOME FOR HIS FRAGILE COALITION BECAUSE OF SHARP DISAGREEMENTS OVER HOW TO MAKE UP FOR THE LOST REVENUE STILL THIS WEEKEND'S VICTORY IS CONSIDERABLE MR. HOSOKAWA TOOK OFFICE IN AUGUST PLEDGING TO CHANGE THE BASIC RULES OF JAPANESE POLITICS BUT THE REFORM BILLS SEEMED TO HIT A DEAD END WHEN REJECTED BY THE UPPER HOUSE OF PARLIAMENT ON JANUARY TWENTY FIRST MR. HOSOKAWA REVIVED THE BILLS BY STRIKING A COMPROMISE WITH THE OPPOSITION LIBERAL DEMOCRATIC PARTY LATE FRIDAY THE DATE OF IMPLEMENTATION HASN'T YET BEEN SET HOWEVER WITH FORMAL LEGISLATIVE APPROVAL OF THE COMPROMISE PLAN STILL REQUIRED IN THE NEXT SESSION OF PARLIAMENT WHICH OPENS MONDAY PARLIAMENT ALSO WILL HAVE TO APPROVE THE NEW ELECTORAL MAP WHILE THE ORIGINAL IMPETUS FOR THE FIVE YEAR REFORM MOVEMENT WAS TO END POLITICAL CORRUPTION IT ISN'T CLEAR THE NEW LAWS WILL ACHIEVE THAT ACCORDING TO ONE TELEVISION POLL ONLY FOURTEEN PERCENT OF THE RESPONDENTS SAID THEY THOUGHT THE ANTICORRUPTION MEASURES WENT FAR ENOUGH QUOTE THE BILL DOESN'T ANSWER AT ALL PUBLIC CALLS FOR AN IMMEDIATE END TO THE CLOSE TIES BETWEEN BUSINESS AND POLITICS THAT HAVE BECOME SUCH A HOTBED OF CORRUPT MONEY POLITICS QUOTE COMPLAINED AN EDITORIAL IN THE MAINICHI SHIMBUN A MAJOR JAPANESE DAILY MR. HOSOKAWA'S ORIGINAL PROPOSAL WAS TO BAN CORPORATE CONTRIBUTIONS TO POLITICIANS UNDER THE COMPROMISE WITH THE L. D. P. THE BAN WILL TAKE EFFECT AFTER FIVE YEARS IN THE MEANTIME CORPORATIONS' DONATIONS WILL BE LIMITED TO ONE POLITICAL ORGANIZATION PER POLITICIAN THE LAWS ALSO PROVIDE PUBLIC FINANCING FOR PARTIES BUT TO MANY OF THE REFORMERS THE REAL POINT WASN'T TO CURB GRAFT BUT TO END THE OUTMODED PARTY STRUCTURE WHICH THEY SAID STIFLED ECONOMIC AND FOREIGN POLICY THE NEW SYSTEM GIVES MORE EMPHASIS TO LONG UNDERREPRESENTED URBAN AREAS IT ALSO REPLACES JAPAN'S SYSTEM OF MULTISEAT DISTRICTS WITH A COMBINATION OF SINGLE SEAT DISTRICTS AND SEATS CHOSEN BY REGIONAL PROPORTIONAL REPRESENTATION VOTES UNTIL ITS COLLAPSE LAST SUMMER THE L. D. P. HAD RUN JAPAN FOR THIRTY EIGHT YEARS BY CHANGING THE NATURE OF ELECTIONS WE ARE GOING TO HAVE SOMETHING MORE LIKE A TWO PARTY SYSTEM SAID IKUO KABASHIMA A PROFESSOR OF POLITICAL SCIENCE AT TSUKUBA UNIVERSITY COMPETITION WILL BECOME MUCH MORE KEEN MOST POLITICIANS EXPECT A TRANSITIONAL PERIOD OF POLITICAL INSTABILITY AS THE NEW PARTIES AND ALLIANCES EMERGE THIS COULD TAKE TWO OR THREE ELECTIONS MR. KABASHIMA ADDED IN THEIR CRUSADE TO CREATE A NEW POLITICAL ORDER MR. HOSOKAWA AND HIS STRATEGISTS SUCCEEDED BY MANIPULATING THE FEARS AND AMBITIONS OF THE BIGGEST OPPONENTS OF REFORM THE L. D. P. AND THE SOCIALISTS THE TWO POLES OF THE OLD POLITICAL STRUCTURE MR. HOSOKAWA WOOED THE SOCIALISTS DURING THE SUMMER BY TAKING THEM INTO HIS GOVERNMENT GIVING THEM CABINET POSTS FOR THE FIRST TIME IN DECADES AND PROPOSING A NEW ELECTORAL SYSTEM THAT WOULD FAVOR THAT PARTY BUT THE BILLS STALLED BECAUSE THE HARD CORE SOCIALISTS OPPOSED THEM SO MR. HOSOKAWA LAST WEEK REVERSED COURSE AND REWROTE THE PACKAGE MAKING IT MORE BENEFICIAL TO THE L. D. P. STILL THE L. D. P. WHICH BUILT ITSELF AROUND THE OLD RULES FACES A DIFFICULT RESTRUCTURING UNDER ANY SORT OF ELECTORAL CHANGE INDEED THE FUTURE OF BOTH THE L. D. P. AND THE SOCIALISTS REMAINS IN QUESTION WITH BOTH PARTIES SPLIT BETWEEN REFORMERS AND ANTIREFORMERS RIGHT NOW THE CONVULSIONS WITHIN THE SOCIALIST PARTY ARE MORE SERIOUS THE SOCIALISTS ARE EXPECTED TO EXPEL THEIR ANTIREFORM DISSIDENTS SOON AN ACT THAT WOULD ROB THE COALITION GOVERNMENT OF ITS MAJORITY IN PARLIAMENT'S UPPER HOUSE THE SOCIALISTS ALSO ARE EXPECTED TO CAUSE TROUBLE OVER MR. HOSOKAWA'S NEXT BIG DECISION THE TAX CUT THE POWERFUL FINANCE MINISTRY IS DEMANDING A CONSUMPTION TAX INCREASE TO MAKE UP FOR LOST REVENUES BUT THE SOCIALISTS ARE STAUNCHLY OPPOSED IF AS MOST OBSERVERS EXPECT MR. HOSOKAWA AGREES TO SOME SORT OF TAX INCREASE THE POSSIBILITY IS QUITE HIGH THAT THE SOCIALISTS WILL LEAVE THE COALITION SAID MINORU MORITA A POLITICAL COMMENTATOR THAT WOULD IN THE SHORT TERM AT LEAST MAKE MR. HOSOKAWA DEPENDENT ON COOPERATION FROM THE OPPOSITION L. D. P. SOME CRITICS ALREADY WERE EXPRESSING WORRY THAT MR. HOSOKAWA AND THE L. D. P. WERE BECOMING TOO CLOSE IF IT BECOMES A COMMON PRACTICE FOR MR. HOSOKAWA AND L. D. P. LEADERS TO MEET MR. MORITA SAID IT WILL IN EFFECT CONSTITUTE A RETURN TO JAPAN'S WARTIME POLITICS WHEN ALL PARTIES UNITED QUOTE THAT WOULD BE DANGEROUS QUOTE IMO INDUSTRIES INCORPORATED SAID IT HAD A FOURTH QUARTER NET LOSS AFTER RECORDING A ONE HUNDRED SIXTY EIGHT MILLION DOLLAR ANTICIPATED LOSS ON DISPOSAL OF ITS ELECTRO OPTICAL SYSTEMS INCORPORATED BUSINESS THE DISPOSAL DECISION RESULTED IN A QUARTERLY LOSS OF TWO HUNDRED FORTY FIVE POINT SIX MILLION DOLLARS OR FOURTEEN DOLLARS AND FIFTY TWO CENTS A SHARE COMPARED WITH NET INCOME OF THREE HUNDRED THIRTY THREE THOUSAND DOLLARS OR TWO CENTS A SHARE A YEAR EARLIER SALES DECLINED TWENTY FOUR PERCENT TO ONE HUNDRED FIFTY THREE POINT ONE MILLION DOLLARS FROM TWO HUNDRED ONE POINT NINE MILLION DOLLARS IMO WHICH MAKES ANALYTICAL AND OPTICAL INSTRUMENTS ELECTRONIC AND MECHANICAL CONTROLS AND ENGINEERED POWER PRODUCTS SAID IT WILL TRIM ITS WORK FORCE BY MID NINETEEN NINETY FOUR THE LATEST QUARTER INCLUDED A CHARGE OF TWENTY THREE POINT SEVEN MILLION DOLLARS OR ONE DOLLAR AND FORTY CENTS A SHARE FOR RESTRUCTURING AND OTHER UNUSUAL ITEMS THE COMPANY RECORDED A ONE HUNDRED NINETY SEVEN MILLION DOLLAR LOSS IN DISCONTINUED OPERATIONS INCLUDING THE ANTICIPATED ITEM IMO TOOK A NINE MILLION DOLLAR CHARGE TO ACCOUNT FOR ITS COST CUTTING PLAN WHICH WILL ELIMINATE SEVEN HUNDRED JOBS OR ELEVEN PERCENT OF ITS WORK FORCE BY MID NINETEEN NINETY FOUR LEAVING THE COMPANY WITH ABOUT FIVE THOUSAND EIGHT HUNDRED EMPLOYEES THE COMPANY ADDED THAT IT WOULD SEEK A WAIVER FROM CERTAIN DEBTHOLDERS TO BORROW AN ADDITIONAL THIRTY FIVE MILLION DOLLARS FOR WORKING CAPITAL AND LETTERS OF CREDIT IMO SAID THE FOURTH QUARTER CHARGES VIOLATED CERTAIN LENDING COVENANTS FOR THE YEAR IMO REPORTED A LOSS OF TWO HUNDRED SEVENTY POINT SIX MILLION DOLLARS OR SIXTEEN DOLLARS AND TWO CENTS A SHARE COMPARED WITH A LOSS OF EIGHTY TWO POINT SIX MILLION DOLLARS OR FOUR DOLLARS AND NINETY CENTS A SHARE IN NINETEEN NINETY TWO SALES DECLINED THIRTEEN PERCENT TO SIX HUNDRED FORTY ONE POINT SEVEN MILLION DOLLARS FROM SEVEN HUNDRED THIRTY THREE POINT SIX MILLION DOLLARS STANDARD AND POOR'S CORPORATION NOTING THE LARGE QUARTERLY LOSS AND VIOLATION OF FINANCIAL COVENANTS PLACED IMO'S LONG TERM DEBT UNDER REVIEW WITH NEGATIVE IMPLICATIONS ABOUT THREE HUNDRED MILLION DOLLARS OF DEBT IS AFFECTED S. AND P. SAID IMO HAS AN IMPLIED SENIOR DEBT RATING OF SINGLE B. PLUS ATLANTIC RICHFIELD COMPANY'S VASTAR RESOURCES INCORPORATED UNIT SAID IT FILED WITH THE SECURITY AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF AS MANY AS SEVENTEEN POINT TWO FIVE MILLION SHARES OR SEVENTEEN POINT SEVEN PERCENT OF STOCK OUTSTANDING RECENTLY CREATED VASTAR OPERATES ARCO'S MAJOR NATURAL GAS PROPERTIES IN THE CONTIGUOUS FORTY EIGHT STATES AS WELL AS SOME RELATED OIL OPERATIONS ITS ASSETS DON'T INCLUDE ARCO'S VAST ALASKAN OPERATIONS BUT IN ITS OWN RIGHT VASTAR WOULD RANK AMONG THE LARGER U. S. NATURAL GAS PRODUCERS IN THE S. E. C. FILING HOUSTON BASED VASTAR SAID THAT AT A MAXIMUM ANTICIPATED PRICE OF THIRTY DOLLARS A SHARE THE I. P. O. MAY RAISE AS MUCH AS FIVE HUNDRED SEVENTEEN POINT FIVE MILLION DOLLARS THE ACTUAL SALE PRICE IS LIKELY TO BE LOWER PROCEEDS FROM THE SALE WOULD GO TO ARCO WHICH WOULD RETAIN AN EIGHTY TWO POINT THREE PERCENT STAKE IN VASTAR ASSUMING ALL STOCK OVER ALLOTMENTS ARE SOLD VASTAR IS THE LARGEST OF FOUR UNITS CREATED LAST FALL BY ARCO TO OPERATE ITS OIL AND GAS HOLDINGS IN THE CONTINGUOUS FORTY EIGHT STATES THE OTHER UNITS HOLD THE COMPANY'S CALIFORNIA AND MIDWESTERN OIL PRODUCTION INTERESTS VASTAR IS BELIEVED TO HAVE THE GREATEST GROWTH PROSPECTS IF MARKETS FOR NATURAL GAS TAKE OFF VASTAR SAID IN ITS FILING THAT ITS PROVED RESERVES TOTAL TWO POINT ONE TRILLION CUBIC FEET OF NATURAL GAS AND NINETY NINE MILLION BARRELS OF CRUDE OIL NATURAL GAS CONDENSATES AND LIQUIDS IN THE FIRST NINE MONTHS OF LAST YEAR THE COMPANY'S DAILY NATURAL GAS PRODUCTION AVERAGED SEVEN HUNDRED ONE MILLION CUBIC FEET AND FORTY FOUR THOUSAND NINE HUNDRED BARRELS OF PETROLEUM LIQUIDS IN NINETEEN NINETY TWO HAD VASTAR BEEN IN EXISTENCE ITS OPERATIONS WOULD HAVE PRODUCED ABOUT ONE POINT ONE THREE BILLION DOLLARS IN REVENUE AND NET INCOME OF THIRTY TWO MILLION DOLLARS ATLANTIC RICHFIELD COMPANY'S VASTAR RESOURCES INCORPORATED UNIT WILL RECEIVE THE PROCEEDS FROM A PROPOSED INITIAL PUBLIC OFFERING OF AS MUCH AS SEVENTEEN POINT SEVEN PERCENT OF VASTAR STOCK OUTSTANDING AN ARTICLE YESTERDAY INCORRECTLY STATED THAT ARCO WOULD RECEIVE THE PROCEEDS WHILE I ENJOYED QUOTE CAMPUS SPEECH CODES QUOTE PAGE ONE DECEMBER TWENTY SECOND WHICH REPORTED ON THE TREND AWAY FROM SUCH CODES I WISH TO OFFER TWO CLARIFICATIONS FIRST THE ARTICLE REFERS TO A NINETEEN NINETY TWO U. S. SUPREME COURT DECISION THAT REGARDED A RACIALLY MOTIVATED CROSS BURNING AS PROTECTED SPEECH THAT DECISION R. A. V. V. SAINT PAUL DID NOT CONCLUDE AS YOUR ARTICLE SUGGESTED THAT THE FIRST AMENDMENT PROTECTS BIGOTS WHO BURN CROSSES AGAINST PROSECUTION IN ALL INSTANCES RATHER THE COURT CONCLUDED THAT THE PARTICULAR LAW USED TO PROSECUTE THE CROSS BURNERS IN SAINT PAUL RESTRICTED THE CONTENT OF SPEECH WITHOUT HAVING A COMPELLING BASIS FOR DOING SO AND WAS THEREFORE IN VIOLATION OF THE FIRST AMENDMENT HAD THE STATUTE BEEN MORE CAREFULLY DRAFTED SO THAT IT RESTRICTED ONLY THE TIME PLACE OR MANNER OF THE SPEECH THE MEANS OF EXPRESSION RATHER THAN THE IDEA EXPRESSED BY THE SPEECH THEN IT MIGHT HAVE BEEN UPHELD AS CONSTITUTIONAL SECOND IN DISCUSSING THE BATTLES RAGING OVER CAMPUS SPEECH CODES YOUR REPORTER NEGLECTED THE IMPORTANT DISTINCTION BETWEEN CODES ENFORCED BY PUBLIC AS OPPOSED TO PRIVATE UNIVERSITIES THE FIRST AMENDMENT'S LIMITATIONS APPLY TO THE GOVERNMENT A STATE OR CITY COLLEGE OR UNIVERSITY CREATED AND ADMINISTERED BY THE GOVERNMENT MAY NOT RESTRICT WHAT STUDENTS SAY WITHOUT SATISFYING THE SAME STRINGENT TEST APPLIED BY THE COURTS TO A LEGISLATURE'S ATTEMPT TO RESTRICT A PERSON'S SPEECH PRIVATE UNIVERSITIES ON THE OTHER HAND ARE NOT NECESSARILY SUBJECT TO CONSTITUTIONAL LIMITATIONS IT DEPENDS UPON THE DEGREE TO WHICH THEY INTERACT WITH OR ARE DEPENDENT UPON THE GOVERNMENT IN THEIR OPERATIONS CONTRARY TO POPULAR BELIEF QUOTE DOUBLE MINORITIES QUOTE BLACK WOMEN DON'T NECESSARILY HAVE AN ADVANTAGE IN THE WORKPLACE RESEARCHERS SAY THAT'S PARTICULARLY TRUE FOR MANAGERS SAYS AUDREY MURRELL A PROFESSOR AT THE UNIVERSITY OF PITTSBURGH'S BUSINESS SCHOOL HER STUDY OF U. S. CENSUS FIGURES AND OTHER DATA SHOWS THAT BLACK WOMEN DON'T GET AN EXTRA BOOST FROM COMPANY EMPLOYMENT POLICIES FAVORING MINORITIES AND FEMALES IN FACT SHE SAYS IT TAKES TEN MONTHS FOR BLACK WOMEN TO EARN WHAT WHITE FEMALES AND BLACK MALES MAKE IN EIGHT MONTHS AND WHITE MALES EARN IN SIX MONTHS THE PAY GAP STEMS FROM WOMEN'S OVERREPRESENTATION IN LOWER PAYING SERVICE JOBS AS WELL AS BLACK EMPLOYEES' TENDENCY TO BE AT THE BOTTOM OF CORPORATE ORGANIZATIONAL CHARTS SAYS MS. MURRELL A PROFESSOR OF ORGANIZATIONAL BEHAVIOR THE DOUBLE WHAMMY DIVIDES BLACK AND WHITE WOMEN IN THE WORKPLACE SAYS ELLA BELL OF M. I. T.'S SLOAN SCHOOL OF MANAGEMENT IN A STUDY OF FEMALE MANAGERS SHE FOUND THAT BLACK RESPONDENTS FELT MORE ISOLATED AND THAT THEY HAD LESS ORGANIZATIONAL SUPPORT THAN WHITE WOMEN WHITE RESPONDENTS WERE MORE LIKELY TO BELIEVE THAT THEIR FIRM HAD A STRONG COMMITMENT TO ADVANCE WOMEN AND MINORITIES THAN DID THEIR BLACK COUNTERPARTS BLACK WOMEN SENSITIVE TO HISTORICAL IMAGES OF SEXUAL SUBSERVIENCE TO POWERFUL WHITE MEN SHY AWAY FROM WHITE MALE MENTORS ADDS MS. BELL SEXUALITY IS AN ISSUE FOR ALL WOMEN BUT IT'S HARDER FOR BLACK WOMEN TO DEBUNK THE MYTHOLOGY ABOUT WHO THEY ARE SHE SAYS THE MEMORY OF REGINALD F. LEWIS MAY GET THE KIND OF PUBLIC ATTENTION THE BLACK WALL STREET DEALMAKER AVOIDED DURING HIS LIFETIME TODAY THE FIRST ANNIVERSARY OF HIS DEATH AT AGE FIFTY A LARGER THAN LIFE SIZED WAX SCULPTURE OF MR. LEWIS WILL BE UNVEILED IN BALTIMORE'S GREAT BLACKS IN WAX MUSEUM ALONG WITH A FORTY FOOT MURAL DEPICTING THE NINETEEN EIGHTY SEVEN LEVERAGED BUYOUT THAT CREATED HIS T. L. C. BEATRICE INTERNATIONAL HOLDINGS STILL BY FAR THE LARGEST BLACK OWNED COMPANY THE WORKS WILL INAUGURATE A PAVILION NAMED FOR THE LATE BALTIMORE NATIVE A FAMILY AUTHORIZED BIOGRAPHY INCLUDING MATERIAL WRITTEN BY MR. LEWIS IS SCHEDULED TO BE PUBLISHED NEXT FALL IN JUST A FEW YEARS MR. LEWIS ECLIPSED THE FIFTY YEAR DYNASTY OF EBONY MAGAZINE PUBLISHER JOHN H. JOHNSON IN THE IMAGINATIONS OF YOUNGER BLACK BUSINESS PEOPLE SAYS FINANCIAL WRITER TONY CHAPELLE JOHNSON PUBLISHING TOPPED BLACK ENTERPRISE MAGAZINE'S ANNUAL RANKING OF BLACK OWNED BUSINESSES BY SALES FROM THE LIST'S INCEPTION IN NINETEEN SEVENTY ONE UNTIL T. L. C. BEATRICE JOINED IT IN NINETEEN EIGHTY SEVEN ON LAST JUNE'S LIST T. L. C. BEATRICE REPORTED ONE POINT SIX BILLION DOLLARS IN SALES COMPARED WITH TWO HUNDRED SEVENTY FOUR MILLION DOLLARS FOR JOHNSON PUBLISHING HE IS A SYMBOL A PLAYER WHERE WE NEVER HAD ANY OTHER PLAYERS SAYS MR. CHAPELLE UNFORTUNATELY THERE HASN'T BEEN ANOTHER BLACK DEALMAKER TO BUY INTO THE FORTUNE ONE THOUSAND WE'RE LOOKING FOR ANOTHER SUPERSTAR HE ADDS BEATRICE SPOKESMAN BUTCH MILEA SAYS THE FIRM STILL GETS NUMEROUS REQUESTS FOR INVESTMENTS DONATIONS AND JOBS FROM AFRICAN AMERICANS A LOT OF THEM STILL ADDRESSED TO REG LOS ANGELES TIMES REPORTERS ARE SUPPOSED TO STAY AWAY FROM QUOTE W. A. S. P.S QUOTE QUOTE HISPANICS QUOTE AND THE QUOTE INNER CITY QUOTE AT LEAST IN THEIR COPY THE PAPER'S NEW GUIDE DEFINING HOW RACE RELATED WORDS SHOULD BE USED HAS DRAWN SNICKERS IN THE NEWSROOM BUT TIMES' EDITORS ARGUE THAT SENSITIVITY TO CHANGING USAGE IS A SERIOUS CONCERN IF YOU WRITE ABOUT LOS ANGELES AND TALK ABOUT A GHETTO AREA I DEFY YOU TO DEFINE WHERE ONE STARTS AND STOPS OR WHERE THEY ARE SAYS TERRY SCHWADRON DEPUTY MANAGING EDITOR SIMILARLY INNER CITY DENOTING A POOR BLACK OR HISPANIC AREA OFTEN IS GEOGRAPHICALLY INACCURATE IN SPRAWLING CITIES MR. SCHWADRON SAYS AND W. A. S. P. FOR WHITE ANGLO SAXON PROTESTANT MAY BE BECOMING PEJORATIVE ACCORDING TO THE GUIDE THE MOVE IS SEEN AS A SIGNIFICANT RESPONSE BY A MAJOR NEWSPAPER TO THE SHIFTING DEMOGRAPHICS OF THE NATION'S NUMBER TWO METROPOLITAN AREA HISPANICS BLACKS AND ASIAN AMERICANS COMPRISE ABOUT HALF THE FOURTEEN MILLION LOS ANGELES AREA RESIDENTS ACCORDING TO CENSUS FIGURES THE TIMES USES LATINO FOR SPANISH SURNAMED GROUPS BECAUSE IT IS PREFERRED OVER HISPANIC BY MEXICAN AMERICANS THE LARGEST SUCH GROUP IN THE SOUTHWEST MOST NEWSPAPERS INCLUDING THE WALL STREET JOURNAL USE HISPANIC FOLLOWING THE CENSUS BUREAU DESIGNATION QUOTE I HAVEN'T HEARD ANY COMPELLING ARGUMENTS FOR CHANGING IT QUOTE SAYS PAUL MARTIN SENIOR EDITOR OF THE JOURNAL'S STYLE BOOK PARTS OF THE TIMES' GUIDE ARE A BIT SILLY SAYS TIMES ASSISTANT EDITOR LINDA WILLIAMS WHO IS BLACK BUT MOST OF IT MAKES GOOD SENSE IT'S SUPPOSED TO MAKE PEOPLE THINK ABOUT WHAT THEY'RE WRITING VALUING DIVERSITY IS A UNIQUELY AMERICAN IDEA THAT MAY NOT TRAVEL WELL ASKED BY A. T. AND T. TO STUDY RACE AND GENDER ISSUES IN OVERSEAS WORKPLACES NEW YORK CONSULTANTS CORNELIUS GROVE AND WILLA HALLOWELL FOUND THE VALUES THAT GIVE IMPETUS TO DIVERSITY ISSUES HERE DON'T NECESSARILY EXIST ABROAD SAYS MR. GROVE BASED ON INTERVIEWS WITH A. T. AND T. MANAGERS AND EXECUTIVES THE TWO REPORT THAT OTHER SOCIETIES VIEW ETHNIC DIFFERENCES AS AN APPROPRIATE BASIS FOR ASSIGNING WORKPLACE ROLES IN MEXICO FOR EXAMPLE AN AMERICAN MANAGER SHOULDN'T EXPECT TO FIND INDIGENOUS INDIANS IN MANAGEMENT POSITIONS WHICH ARE CONTROLLED BY EUROPEAN DESCENDANTS IN JAPAN IT TOOK AN A. T. AND T. MANAGER MONTHS TO GET JAPANESE MANAGERS TO TALK TO KEY EAST INDIAN EMPLOYEES MS. HALLOWELL SAYS IN THE JANUARY ISSUE OF THE NEWSLETTER CULTURAL DIVERSITY AT WORK THE CONSULTANTS ADVISE AMERICAN MANAGERS ABROAD TO VALUE EQUALITY WITHOUT JUDGING CULTURAL NORMS BLACK ENTERPRISE MAGAZINE HAS BEEN RANKING THE NATION'S BLACK OWNED COMPANIES BY SALES SINCE NINETEEN SEVENTY THREE NOT NINETEEN SEVENTY ONE AS STATED IN THE JANUARY NINETEENTH BUSINESS AND RACE COLUMN ALSO JOHNSON PUBLISHING COMPANY TOPPED THE LIST FROM NINETEEN EIGHTY FOUR TO NINETEEN EIGHTY SEVEN NOT NINETEEN SEVENTY ONE TO NINETEEN EIGHTY SEVEN AS STATED IN THE COLUMN FRENCH DOMESTIC AIRLINE AIR INTER SAID IT IS SUSPENDING OPERATIONS OF ITS NEW AIRBUS A. THREE THIRTY JET BECAUSE OF REPEATED PROBLEMS WITH THE AIRCRAFT'S LANDING GEAR AIR INTER IS THE LAUNCH CUSTOMER FOR THE A. THREE THIRTY THE LATEST ADDITION TO THE AIRBUS INDUSTRIE FAMILY OF COMMERCIAL JETS THE A. THREE THIRTY IS A TWIN ENGINE SISTER OF THE EUROPEAN CONSORTIUM'S LONG RANGE FOUR ENGINE A. THREE FORTY COMMERCIAL JET AIR INTER A SUBSIDIARY OF STATE OWNED AIR FRANCE SAID IT WOULD HALT A. THREE THIRTY OPERATIONS QUOTE UNTIL ALL THE PROBLEMS RAISED BY THESE EVENTS HAVE BEEN COMPLETELY ANALYZED AND SORTED OUT QUOTE BY AIRBUS AIRBUS IS A CONSORTIUM AMONG AEROSPATIALE OF FRANCE DAIMLER BENZ A. G.'S DEUTSCHE AEROSPACE AIRBUS GMBH OF GERMANY BRITISH AEROSPACE P. L. C. AND CONSTRUCCIONES AERONAUTICAS S. A. OF SPAIN AIR INTER TOOK DELIVERY OF ITS FIRST A. THREE THIRTY AT THE END OF LAST YEAR AND PUT IT INTO SERVICE IN MID JANUARY ON ITS PARIS TOULOUSE AND PARIS MARSEILLE ROUTES THE AIRCRAFT'S LANDING GEAR FAILED TO RETRACT AFTER TAKEOFFS ON JANUARY EIGHTEENTH AND NINETEEN AND THE AIRCRAFT WAS TAKEN OUT OF SERVICE FOR MAINTENANCE A SIMILAR INCIDENT OCCURRED ON FRIDAY THE A. THREE THIRTY HAS THE SAME LANDING GEAR AS THE A. THREE FORTY WHICH HASN'T EXPERIENCED SUCH PROBLEMS AIR INTER HAS ORDERED FIVE A. THREE THIRTIES TO BE DELIVERED IN THE NEXT YEAR OVERALL AIRBUS INDUSTRIE HAS BOOKED ONE HUNDRED EIGHTEEN ORDERS FOR A. THREE THIRTIES FROM FOURTEEN CUSTOMERS BUT ONLY ONE HAS BEEN DELIVERED SO FAR THE NEXT PLANES SCHEDULED FOR DELIVERY WILL ALSO GO TO AIR INTER A SPOKESMAN FOR AIRBUS INDUSTRIE SAID OBVIOUSLY WE'RE GOING TO TAKE A CLOSE LOOK AT THE AIRCRAFT IN ORDER TO GET TO THE BOTTOM OF THE PROBLEM HE SAID ONE DIFFICULTY IS THAT THE PROBLEM IS INTERMITTENT AND DOESN'T OCCUR ON EACH TAKE OFF DOWTY AEROSPACE OF BRITAIN IS THE PRIME CONTRACTOR FOR THE A THREE HUNDRED THIRTY'S LANDING GEAR ALONG WITH MESSIER BUGATTI S. A. OF FRANCE THE POTENTIAL FOR A CLASH BETWEEN RUSSIA AND UKRAINE SHARPENED YESTERDAY AS VOTERS IN UKRAINE'S AUTONOMOUS REPUBLIC OF CRIMEA SENT AN ANGRY SIGNAL THAT THEY WOULD RATHER TIE THEIR FUTURE TO THEIR TRADITIONAL OVERLORDS IN MOSCOW THAN TO KIEV WITH VOTES STILL BEING COUNTED IN THE RUNOFF ELECTION FOR CRIMEA'S NEWLY CREATED PRESIDENCY IT LOOKED LIKELY THAT VOTERS ON THIS PENINSULA IN UKRAINE HAD HANDED A BIG WIN TO A PRO RUSSIAN SECESSIONIST CANDIDATE YURI MESHKOV AWAITING VICTORY IN HIS CAMPAIGN HEADQUARTERS AT THE SIMFEROPOL SOCIETY OF AFGHANISTAN VETERANS A LOW BUILDING DECORATED WITH THE BLUE WHITE AND RED CRIMEAN FLAG MR. MESHKOV SAID THAT HIS AIM IN CAMPAIGNING TO BREAK FREE OF KIEV IS NOT TO LAUNCH CRIMEA INTO CONFLICT BUT QUOTE TO SAVE OURSELVES FROM IT QUOTE THOUGH THE STREETS OF SIMFEROPOL WERE QUIET TENSION HERE HAS BEEN EVIDENT DURING AN ELECTION CAMPAIGN IN WHICH AT LEAST FOUR POLITICAL FIGURES HAVE BEEN MURDERED INCLUDING THE SOLE TATAR DEPUTY TO CRIMEA'S PARLIAMENT A LOCAL DEPUTY OF UKRAINE'S PARLIAMENT AND SPOKESMAN FOR THE BLACK SEA FLEET WHICH IS BASED IN CRIMEA'S PORT OF SEVASTOPOL AND IS CLAIMED BY BOTH RUSSIA AND UKRAINE TO PROTECT HIMSELF FROM ATTACK MR. MESHKOV HAS ENLISTED THE SERVICES OF MORE THAN A DOZEN BODYGUARDS WHO STROLL THE CRAMPED ROOMS OF THE AFGHAN VETERANS CLUB WEARING FLAK JACKETS AND CRADLING KALASHNIKOV RIFLES THE TALL TRIM FORTY NINE YEAR OLD MR. MESHKOV SAYS HE WANTS TO UNHITCH THE CRIMEAN PENINSULA FROM UKRAINE'S POST SOVIET ECONOMIC FREE FALL WHICH ON ITS CURRENT COURSE OF NINETY PERCENT MONTHLY INFLATION AND ZERO REFORM HE WARNS IS SPEEDING ALL UKRAINE TOWARD CHAOS AND CIVIL WAR MR. MESHKOV'S PUBLISHED CAMPAIGN PLATFORM TAKES HIS POLICY A STEP FURTHER PROMISING CRIMEA A REFERENDUM THAT COULD LEAD TO THE RE CREATION OF UNITY WITH RUSSIA UP NORTH IN THE UKRAINIAN CAPITAL OF KIEV PRESIDENT LEONID KRAVCHUK WAS THREATENING LAST WEEK THAT HE WOULD OVERRULE CRIMEA'S ELECTION RESULTS SHOULD THEY POINT TOWARD SECESSION THIS MOUNTING SHOWDOWN BETWEEN KIEV AND CRIMEA WAS AMONG THE REASONS THAT CENTRAL INTELLIGENCE AGENCY DIRECTOR JAMES WOOLSEY IN TESTIMONY BEFORE THE SENATE INTELLIGENCE COMMITTEE LAST WEEK PINPOINTED UKRAINE AND CRIMEA IN PARTICULAR AS A SITE OF POTENTIAL CRISIS THE FEAR IS THAT RUSSIA WHICH HAS BEEN INCREASINGLY PRONE TO MEDDLE IN ITS FORMER FELLOW SOVIET STATES MIGHT BACK A CRIMEAN BID FOR SECESSION FROM UKRAINE THIS WOULD SCOTCH THE DEAL SIGNED BY PRESIDENTS CLINTON YELTSIN AND KRAVCHUK IN MOSCOW EARLIER THIS MONTH FOR UKRAINE TO SHIP ITS NUCLEAR MISSILES TO RUSSIA FOR DISMANTLING BEHIND THE RISING TENSIONS LIES A TANGLED HISTORY IN WHICH THE POLITICAL FICTIONS THAT HELPED UNDERPIN SOVIET POWER HAVE WROUGHT TROUBLE IN THE POST SOVIET REALM CRIMEA LONG PART OF RUSSIA WAS GIVEN TO UKRAINE IN NINETEEN FIFTY FOUR BY SOVIET PREMIER NIKITA KHRUSHCHEV AS A TOKEN OF FRIENDSHIP IT WAS A MEANINGLESS GIFT AT THE TIME HAILED BY THE THEN SOVIET UKRAINE AS A CLEAR ILLUSTRATION OF THE LIMITLESS TRUST AND SINCERE LOVE OF THE RUSSIAN PEOPLE FOR THE UKRAINIAN PEOPLE WHEN UKRAINE GAINED INDEPENDENCE IN NINETEEN NINETY ONE THE REDRAWN BORDER SUDDENLY CAME TO LIFE TODAY SOME SEVENTY PERCENT OF CRIMEA'S PEOPLE CONSIDER THEMSELVES ETHNIC RUSSIANS STRANDED IN A UKRAINE DETERIORATING SO FAST THAT FROM HERE RUSSIA LOOKS RICH WE ARE PLUNGED INTO POVERTY RIGHT NOW SAID A MECHANICAL ENGINEER VIKTOR SIDORYENKO EXPLAINING WHY HE HAD JUST CAST HIS BALLOT AT A SIMFEROPOL POLLING STATION FOR MR. MESHKOV ANOTHER VOTER JUST BEHIND HIM VALENTINA MOROZ SAYS SHE TOO VOTED FOR MR. MESHKOV BECAUSE HER FORMER RUSSIAN RUBLE PENSION WAS ENOUGH TO LIVE ON TODAY SAYS MS. MOROZ HER FIVE HUNDRED THOUSAND UKRAINIAN COUPONS A MONTH BUY ONLY BREAD AND MILK A VISIT TO MR. MESHKOV'S RIVAL IN THE TWO MAN PRESIDENTIAL RUNOFF NYKOLA BAGROV THE PRO UKRAINIAN SPEAKER OF THE CRIMEAN PARLIAMENT SUGGESTS WHY MANY CRIMEANS ARE DESPERATE ENOUGH TO RISK SUPPORTING MR. MESHKOV'S SECESSIONIST PLATFORM SITTING IN HIS VAST PARLIAMENTARY OFFICE EQUIPPED WITH SEVEN TELEPHONES AND A FIFTY FOUR VOLUME SET OF LENIN'S WORKS MR. BAGROV HAS NO HOPE TO OFFER QUOTE EVERYTHING I COULD DO FOR CRIMEA I HAVE DONE QUOTE HE SAYS BLAMING QUOTE THE HARD ECONOMIC SITUATION IN CRIMEA QUOTE ON QUOTE THE DRAGGING OF REFORMS IN KIEV QUOTE AT LEAST SAYS MR. BAGROV I WAS HONEST HE ADDS THE TIME WILL COME WHEN MESHKOV WILL HAVE TO ANSWER THE PEOPLE'S QUESTIONS THAT TIME MAY BE COMING THIS WEEK POISED TO TRY TO DELIVER ON HIS PROMISE OF A RETURN TO RUSSIA MR. MESHKOV HAS BEGUN WAVERING SINCE WINNING THIRTY EIGHT POINT FIVE PERCENT OF THE VOTE IN THE FIRST ROUND OF THE ELECTION TWO WEEKS AGO COMPARED WITH MR. BAGROV'S SEVENTEEN PERCENT IN A FIELD OF SIX CANDIDATES MR. MESHKOV HAS STOPPED TALKING ABOUT A STRAIGHT SWITCH OF ALLEGIANCE TO RUSSIA AND STARTED PLAYING UP A BID FOR ECONOMIC INDEPENDENCE I WOULD LIKE TO BRING THE RUBLE TO CRIMEA HE SAID YESTERDAY THE TIMING OF HIS PROMISED REFERENDUM MR. MESHKOV EXPLAINED WILL DEPEND ON THE SITUATION AFTER THE ELECTION INCLUDING KIEV'S REACTION EARLIER MR. MESHKOV HAD SAID HE MIGHT HOLD THE REFERENDUM MARCH TWENTY SEVENTH TO COINCIDE WITH UKRAINE'S PARLIAMENTARY ELECTIONS FOR RUSSIA WATCHING THE RIFTS GROW EVER WIDER IN UKRAINE THE HOPE SEEMS TO BE THAT CRIMEA WILL COME MOSCOW'S WAY WHETHER MR. MESHKOV BACKPEDALS OR NOT BRINGING WITH IT THE BLACK SEA FLEET SPEAKING TO THE RUSSIAN PARLIAMENT LAST WEEK THE CHAIRMAN OF THE STATE DUMA'S COMMITTEE FOR COMMONWEALTH OF INDEPENDENT STATES AFFAIRS KONSTANTIN ZATULIN SAID NOBODY WANTS TO STEAL CRIMEA FROM UKRAINE OVERNIGHT WASTE COMPANIES INTENSIFYING THEIR EFFORTS TO WIN BACK BUSINESS LOST TO CEMENT MAKING KILNS PLAN TO PETITION THE ENVIRONMENTAL PROTECTION AGENCY TODAY TO PREVENT HAZARDOUS WASTE BURNING AT SIX KILNS AND TWO OTHER PLANTS THE MOVE WHICH COULD LEAD TO A FEDERAL LAWSUIT AGAINST THE E. P. A. IF THE AGENCY DOESN'T ACT ON THE PETITION REFLECTS THE GROWING DISTRESS IN THE WASTE INDUSTRY IT ALSO ILLUSTRATES THE INCREASING ROLE OF THE E. P. A. NOT ONLY AS AN ENVIRONMENTAL REGULATOR BUT AS REFEREE IN BILLION DOLLAR BUSINESS DISPUTES A JOB THE AGENCY IS MUCH LESS COMFORTABLE WITH THE ENVIRONMENTAL SERVICES INDUSTRY AND OTHER INDUSTRIES THE E. P. A. REGULATES SUCH AS PAPER MAKING AND HEAVY MANUFACTURING ARE BY THEIR NATURES CAPITAL INTENSIVE REQUIRING HUGE INVESTMENTS THAT CAN BE IMPERILED BY CHANGES IN REGULATION COMPANIES SUCH AS WMX TECHNOLOGIES INCORPORATED WESTINGHOUSE ELECTRIC CORPORATION UNION PACIFIC CORPORATION AND ROLLINS ENVIRONMENTAL SERVICES INCORPORATED COLLECTIVELY SPENT HUNDREDS OF MILLIONS OF DOLLARS IN RECENT YEARS TO BUILD AND WIN PERMITS FOR HAZARDOUS WASTE INCINERATORS THOSE WERE SPECIFICALLY BUILT TO BURN HAZARDOUS WASTE BY CONTRAST THE KILN OPERATORS LEARNED TO BURN HAZARDOUS WASTE ALONG WITH THE HUGE AMOUNTS OF FUEL THEY USE THUS LOWERING THEIR OVERALL FUEL COSTS THE E. P. A. INTENDED TO FORCE INCREASING AMOUNTS OF TOXIC WASTES TOWARD THE INCINERATORS BUT QUITE UNEXPECTEDLY MAJOR INDUSTRIAL COMPANIES FOUND WAYS TO SHARPLY REDUCE THE WASTES THEY GENERATE AND CEMENT KILNS HAVE TAKEN EVER MORE OF THE REMAINING WASTES PRICES IN THE BUSINESS HAVE PLUNGED THE E. P. A. CONTRIBUTED TO THIS MESS BY OVERESTIMATING FUTURE WASTE VOLUMES AND WORRYING PUBLICLY THAT A SHORTAGE OF DISPOSAL CAPACITY LOOMED AHEAD EVEN AS A GLUT WAS DEVELOPING THAT REVERSAL WAS RESPONSIBLE FOR MOST OF A FIVE HUNDRED FIFTY MILLION DOLLAR PRETAX CHARGE AT A WMX UNIT LAST YEAR AS IT WROTE DOWN THE VALUE OF INCINERATORS AND GENERALLY DEPRESSED RESULTS AMONG OPERATORS OF HAZARDOUS WASTE INCINERATORS IN A MEETING LAST NOVEMBER OFFICIALS OF THESE COMPANIES TOLD E. P. A. ADMINISTRATOR CAROL BROWNER THAT BASED ON CURRENT VOLUMES THEY HAD OVERINVESTED BY ABOUT TWO HUNDRED EIGHTY MILLION DOLLARS OR ONE HUNDRED FORTY THOUSAND TONS A YEAR OF INCINERATOR CAPACITY THAT MEETING AT WHICH EXECUTIVES ASKED MS. BROWNER FOR HELP BY PUSHING A WIDER VARIETY OF WASTES TOWARD INCINERATION AND BY CRACKING DOWN ON LESS REGULATED KILNS HASN'T PRODUCED ANY NOTICEABLE RESULTS SINCE AN ANNOUNCEMENT LAST MAY THAT SHE WOULD BE TAKING A TOUGHER STANCE TOWARD HAZARDOUS WASTE BURNING MS. BROWNER HAS HAD AGENCY OFFICIALS STUDYING THE BUSINESS THE PETITION IS BEING FILED BY AN INDUSTRY GROUP THE HAZARDOUS WASTE TREATMENT COUNCIL AND BY ABOUT TEN LOCAL ENVIRONMENTAL GROUPS THAT HAVE BEEN FIGHTING THE KILNS AND OTHER PLANTS TARGETED IN THE FILING THE PETITION TARGETS PLANTS IN MICHIGAN CALIFORNIA MISSOURI TEXAS OKLAHOMA INDIANA AND LOUISIANA THAT EITHER CURRENTLY BURN HAZARDOUS WASTES OR HAVE INDICATED THAT THEY MAY BEGIN DOING SO SOON THE FILING A COPY OF WHICH WAS PROVIDED TO THE WALL STREET JOURNAL ASKS THE E. P. A. TO PREVENT THESE PLANTS FROM BURNING HAZARDOUS WASTES ALLEGING THEY LACK PROPER PERMITS AND OTHER VIOLATIONS GENERALLY THE KILNS ARE LESS REGULATED THAN HAZARDOUS WASTE INCINERATORS KILN OPERATORS CONTEND THEY BURN WASTES RESPONSIBLY E. P. A. OFFICIALS COULDN'T BE REACHED OVER THE WEEKEND SINCE LATE LAST YEAR THEY HAVE DECLINED TO COMMENT ON THE WASTE COMPANIES' LOBBYING EFFORT AND ON THEIR SPECIFIC ENFORCEMENT PLANS YOU START ME TALKING OR THE ONE THEY COULD HAVE BOUGHT STEROID AFTERMATH BRAWN DAMAGE PRESIDENT CLINTON HAILED RICHARD NIXON AS HIS HEALTH CARE ALLY TUESDAY NIGHT BUT THE NEXT DAY THE FORMER PRESIDENT STOPPED BY CAPITOL HILL FOR A LUNCH IN HIS HONOR SPONSORED BY SENATOR BOB DOLE QUOTE I'M FOR THE DOLE BILL QUOTE THE OLD G. O. P. PRINCE SAID LATER TO A WANDERING T. V. CAMERA WHATEVER IT IS I'M FOR IT BOB DOLE RELATES THAT STORY WITH JUST A HINT OF GLEE AS IF HE'S RELISHING EVEN THAT SMALL VICTORY OVER A NEWLY CONFIDENT REVIVED BILL CLINTON THE SENATE MINORITY LEADER DOESN'T YET HAVE HIS OWN HEALTH BILL BUT HE DOES HAVE A STRATEGY FOR BEATING MR. CLINTON'S TO MAKE IT WORK HE NEEDS AT LEAST FORTY ONE SENATE REPUBLICANS UNITED AGAINST THE CLINTON PLAN ENOUGH TO IMPLY A FILIBUSTER IF WE'RE GOING TO BE PLAYERS WE HAVE TO STAY ON THE SAME SHIP HE SAYS WE'RE NOT THERE YET MR. NIXON'S REAPPEARANCE IS ESPECIALLY APT BECAUSE BILL CLINTON WANTS TO DO AGAIN TO REPUBLICANS WHAT DEMOCRATS DID TO THEM BACK IN THE NIXONIAN NINETEEN SIXTIES AND NINETEEN SEVENTIES THE MODEL IS THE POLITICS OF THE GREAT SOCIETY DEMOCRATS PROPOSED BILLS AND REPUBLICANS REPLIED NOT WITH PRINCIPLED OPPOSITION BUT WITH WHAT THEY CALLED CONSTRUCTIVE REPUBLICAN ALTERNATIVE PROPOSALS DEMOCRATS QUICKLY TURNED THAT INTO A PUNGENT ACRONYM L. B. J. TRIUMPHED BY PEELING OFF ENOUGH FEARFUL REPUBLICANS WHO GOT NO POLITICAL CREDIT IN ANY EVENT LAST FALL REPUBLICANS SEEMED POISED FOR ANOTHER SUCH RITUAL SUICIDE THEIR CONSTRUCTIVE ALTERNATIVES SPROUTED HILLARY WAS HAILED EVEN MR. DOLE TREADED LIGHTLY ON A CLINTON PLAN THAT WOULD BE THE LARGEST GOVERNMENT INTRUSION INTO PRIVATE LIFE SINCE MR. NIXON IMPOSED WAGE AND PRICE CONTROLS BUT SLOWLY THE G. O. P. HAS BEGUN TO UNDERSTAND THE STAKES MR. DOLE SAYS HE SAW GROWING OPPOSITION BACK HOME IN KANSAS BUT HE CAN ALSO READ POLLS APPROVAL FOR CLINTONCARE HAS FALLEN TO FORTY TWO PERCENT TO THIRTY NINE PERCENT IN JANUARY FROM FIFTY ONE PERCENT TO EIGHTEEN PERCENT IN SEPTEMBER ACCORDING TO THE LATEST WALL STREET JOURNAL SLASH N. B. C. SURVEY MORE REVEALING YET THOSE WHO HAVE HEALTH INSURANCE NOW OPPOSE THE CLINTON PLAN FORTY TWO PERCENT TO THIRTY NINE PERCENT AND THE INSURED TEND TO VOTE WITH AN EYE ON NINETEEN NINETY SIX MR. DOLE HAS ALSO WATCHED HIS POTENTIAL ADVERSARIES OUTFLANK HIM ON THE RIGHT FIRST TEXAS SENATOR PHIL GRAMM ASSAILED CLINTONCARE AS THE SOCIAL ENGINEERING IT IS THEN DICK CHENEY ENDORSED THE ANALYSIS BY STRATEGIST BILL KRISTOL THAT THERE REALLY IS NO HEALTH CARE CRISIS SO CLINTON RADICALISM IS UNNEEDED AND DANGEROUS MR. DOLE HAS NOW DECIDED TO LEAD THIS LINE OF ATTACK MR. DOLE ASSUMES THE STATE OF THE UNION AFTERGLOW WILL BUOY THE CLINTON PLAN FOR A WHILE THEN DEMOCRATS WILL QUOTE RAMROD SOMETHING THROUGH THE HOUSE QUOTE ON A PARTISAN VOTE BUT AS THE FACTS BECOME BETTER KNOWN THE PLAN'S POPULARITY WILL FADE ABOUT THAT TIME THE BILL WILL HIT THE SENATE FINANCE COMMITTEE WHERE MR. DOLE AND ONLY AN ELEVEN TO NINE DEMOCRATIC ADVANTAGE AWAIT ALSO WAITING IS DEMOCRATIC CHAIRMAN PAT MOYNIHAN WHO HAS SAID THAT NO HEALTH REFORM WILL PASS THAT BOB DOLE HASN'T APPROVED BUT ONLY IF FORTY ONE REPUBLICANS ARE UNITED WILL THEY HAVE THE LEVERAGE TO WORK WITH MODERATE DEMOCRATS AND PURGE CLINTONCARE'S PRICE CONTROLS BUSINESS MANDATES AND VAST BUREAUCRACIES I THINK WE CAN DO IT MR. DOLE SAYS ADDING THAT IT MAY BE A LITTLE BRASS KNUCKLES BY THAT HE MEANS HE MAY HAVE TO PERSUADE SOME OF HIS LESS PRINCIPLED COLLEAGUES JOHN CHAFEE THE RHODE ISLAND LIBERAL IS ALREADY NERVOUS ABOUT THE NEW DOLE STRATEGY HE'S ON BILL AND HILLARY'S SCHMOOZE LIST WITH ONLY FORTY FOUR SENATE SEATS AND VERMONT'S JAMES JEFFORDS ALREADY A SELLOUT MR. DOLE MAY HAVE TO STRANGLE THE DRIFTERS TO PEEL OFF MR. CHAFEE AND OTHERS THE WHITE HOUSE WILL TRY TO FRAME THE CHOICE AS ITS REFORM FOR HEALTH CARE OR NOTHING MR. DOLE'S SENSIBLE REPLY IS TO ASK REPUBLICANS TO RALLY AROUND A SINGLE BILL SIMILAR TO THE ONE INTRODUCED IN NINETEEN NINETY ONE BY MR. CLINTON'S OWN TREASURY SECRETARY LLOYD BENTSEN THIS WOULD REFORM THE HEALTH INSURANCE MARKET ALLAYING THE MIDDLE CLASS ANXIETIES SUCH AS PORTABILITY THAT MR. CLINTON LIKES TO EXPLOIT BUT WITHOUT ENDORSING A VAST LIBERAL EXPERIMENT MR. DOLE ISN'T IMPRESSED WITH THE PRESIDENT'S THREAT TO VETO SUCH A NONRADICAL REFORM DO YOU REALLY THINK HE'S GOING TO VETO A BILL PASSED BY A DEMOCRAT CONGRESS HE ASKS IT MAY BE AN EMPTY THREAT DRAWING BRIGHT LINES ON HEALTH CARE IS ESPECIALLY VALUABLE TO REPUBLICANS NOW THAT MR. CLINTON IS ERASING THEM ON CRIME AND WELFARE THE PARODY OF LIBERAL ACTIVISM THAT IS THE CLINTON PLAN IS ONE OF THE FEW OPENINGS DEMOCRATS ARE GIVING REPUBLICANS FOR NOVEMBER'S ELECTIONS EVEN MR. CLINTON SEEMS TO UNDERSTAND THIS WEAKNESS BECAUSE ON TUESDAY HE WAS AT PAINS TO SAY WE NEED GUARANTEED PRIVATE INSURANCE EVEN AS HE TRASHED PRIVATE INSURERS BILL MCINTURFF A G. O. P. POLLSTER SAYS THAT WHEN HE EXPLAINS CLINTONCARE DETAILS TO FOCUS GROUPS SOME PEOPLE SIMPLY DON'T BELIEVE THEM QUOTE THEY SAY YOU CAN'T DO THAT IN AMERICA QUOTE THIS SUGGESTS AN OPENING FOR REPUBLICANS TO LIFT THEIR ARGUMENTS BEYOND HEALTH CARE DETAILS TO A BROADER VISION OF INDIVIDUAL LIBERTY BOB DOLE HAS EXCELLED AS A STRATEGIST BUT HE HAS YET TO PROVIDE SUCH A VISION TO COMPETE WITH MR. CLINTON'S SECURITY STATE THIS YEAR HE'LL HAVE TO DO BOTH TO KEEP HIS FORTY ONE VOTES AND TO STAY IN THE RUNNING FOR THE PRESIDENCY MCDONNELL DOUGLAS CORPORATION BEATING OUT ARCHRIVAL LOCKHEED CORPORATION FOR A HOTLY CONTESTED FIGHTER JET ORDER WILL SELL TWENTY OF ITS F. FIFTEEN JETS TO ISRAEL FOR TWO BILLION DOLLARS THE SALE THE LARGEST ON THE INTERNATIONAL HORIZON FOR U. S. ARMS MAKERS DEALT A HARSH BLOW TO LOCKHEED WHICH HAD CAMPAIGNED INTENSELY TO SELL FORTY TWO NEW VARIANTS OF ITS F. SIXTEEN FIGHTER TO ISRAEL AT SLIGHTLY LOWER TOTAL COST MILITARY AND INDUSTRY OFFICIALS SAID THE DEAL ALSO INCLUDES OPTIONS FOR ISRAEL TO BUY FIVE MORE F. FIFTEEN JETS FROM MCDONNELL DOUGLAS DELIVERIES SOME OF WHICH COULD BE SCHEDULED AS EARLY AS NINETEEN NINETY SIX ARE EXPECTED TO RUN THROUGH NINETEEN NINETY NINE GENERAL HERZL BODINGER HEAD OF THE ISRAELI AIR FORCE SAID THAT AMONG THE REASONS ISRAEL CHOSE THE TWO ENGINE F. FIFTEEN WAS THAT IT CAN FLY WITHOUT REFUELING TO COUNTRIES LIKE IRAN IRAQ AND LIBYA WITH LARGE WEAPON LOADS EVEN DURING EXTREME WEATHER CONDITIONS AT MCDONNELL DOUGLAS HEADQUARTERS IN SAINT LOUIS MANAGERS WERE ECSTATIC THAT THEIR PLANE MARKETED THROUGH A RELATIVELY QUIET CAMPAIGN HAD PREVAILED AFTER SURVIVING A CHALLENGE FROM LOCKHEED THAT DELAYED THE SALE FOR MONTHS AFTER PERSONAL INTERVENTION BY LOCKHEED CHAIRMAN DANIEL TELLEP ISRAEL HAD AGREED TO CONSIDER A YET TO BE BUILT F. SIXTEEN E. S. OR QUOTE ENHANCED STRATEGIC QUOTE VARIANT SUCH A MODEL OF THE SINGLE ENGINE F. SIXTEEN COULD FLY FAR ENOUGH TO REACH POTENTIAL TARGETS AND WOULD HAVE MADE THE LOCKHEED JET MORE COMPETITIVE WITH THE F. FIFTEEN FOR ISRAELI NEEDS THOUGH IT ALSO STOOD TO MAKE THE PLANE MORE EXPENSIVE IN THE END LOCKHEED PULLED OUT ALL THE STOPS RUNNING LARGE ADVERTISEMENTS IN ISRAELI NEWSPAPERS AND OFFERING FINAL PRODUCTION OF THE JETS IN ISRAEL LOCKHEED ALSO MADE NO SECRET OF THE SUPPLIER CONTRACTS IT WOULD WITHDRAW FROM ISRAEL IF THE F. SIXTEEN E. S. LOST LOCKHEED SAID IT DID NOTHING IMPROPER IN STUDYING HOW IT WOULD END THOSE CONTRACTS LOCKHEED THE CALABASAS CALIFORNIA AEROSPACE COMPANY THAT BOUGHT ITS F. SIXTEEN FIGHTER BUSINESS FROM GENERAL DYNAMICS CORPORATION LAST YEAR ALREADY HAS HAD TO DRASTICALLY SLOW PRODUCTION BECAUSE OF ORDER CANCELLATIONS BY THE U. S. AIR FORCE AND PAKISTAN BOTH MCDONNELL DOUGLAS AND LOCKHEED HAD CONCEDED THAT THE COMPETITION WAS ESPECIALLY IMPORTANT BECAUSE OF THE SHRINKING NUMBER OF LARGE SALE PROSPECTS EMERGING AT A TIME OF FALLING WORLD WIDE DEFENSE SPENDING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY MCDONNELL DOUGLAS SHARES ROSE TWO POINT SIX TWO FIVE DOLLARS A SHARE OR TWO POINT FOUR PERCENT TO CLOSE AT ONE HUNDRED ELEVEN DOLLARS AND FIFTY CENTS WHILE LOCKHEED STOCK CLOSED UNCHANGED AT SIXTY THREE DOLLARS AND SEVENTY FIVE CENTS A SHARE AT LOCKHEED'S FIGHTER DIVISION IN FORT WORTH TEXAS DISAPPOINTED OFFICIALS RELEASED A STATEMENT SAYING THEY DON'T UNDERSTAND THE DECISION CRITERIA SINCE THEY APPARENTLY WEREN'T BASED ON PRICE OR PERFORMANCE THE COMPETITION WHICH HAS RAGED FOR MORE THAN A YEAR BEGAN AS A CONTEST BETWEEN THE MCDONNELL DOUGLAS F. SLASH A EIGHTEEN ATTACK JET AND A DIFFERENT F. SIXTEEN VARIANT BUT LOCKHEED LATER FOUND ITSELF SCRAMBLING TO COMPETE AGAINST THE F. FIFTEEN THE PREMIER FIGHTER OF THE U. S. AIR FORCE ROBERT TRICE A MCDONNELL DOUGLAS VICE PRESIDENT SAID THAT PEOPLE WHO ARE SERIOUS AS BUYERS FAVOR F. FIFTEENS FOR OVERALL PERFORMANCE ONE FACTOR IN THE SALE LOOKS TO HAVE HAD LITTLE TO DO WITH PERFORMANCE COMPARISONS HOWEVER BY ORDERING THE F. FIFTEEN ISRAEL IS HELPING PRESERVE AN ORDER FOR SEVENTY TWO OF THE F. FIFTEENS BY SAUDI ARABIA THE SAUDIS UNDER FINANCIAL PRESSURE ARE NEGOTIATING TO RESTRUCTURE ARMS DELIVERIES FROM FIVE MAJOR U. S. DEFENSE CONTRACTORS IT NOW APPEARS THE ISRAELI SALE WILL PERMIT A NEEDED SLOWDOWN IN SOME SAUDI DELIVERIES OF F. FIFTEENS SEVERAL YEARS FROM NOW JOEL JOHNSON VICE PRESIDENT INTERNATIONAL WITH THE AEROSPACE INDUSTRIES ASSOCIATION TRADE GROUP SAID THAT WITHOUT THE SAUDI BUY THERE ISN'T AN F. FIFTEEN LINE FOR THE ISRAELIS TO BUY FROM AND WITHOUT THE ISRAELI DECISION IT'S HARD TO FIGURE OUT THE SAUDI DELIVERY SCHEDULE AMY DOCKSER MARCUS AND THOMAS E. RICKS CONTRIBUTED TO THIS ARTICLE IOMEGA CORPORATION A COMPUTER STORAGE SUPPLIER REPORTED A FOURTH QUARTER LOSS OF SEVENTEEN MILLION DOLLARS OR ONE DOLLAR AND FIFTEEN CENTS A SHARE ON SALES OF THIRTY SEVEN POINT FIVE MILLION DOLLARS THE ROY UTAH COMPANY ATTRIBUTED THE LOSS TO A RESTRUCTURING CHARGE OF TWELVE POINT SIX MILLION DOLLARS MAINLY FOR ASSET WRITE DOWNS AND COSTS RELATED TO AN UNSPECIFIED NUMBER OF LAYOFFS AND THE ESTABLISHMENT OF RESERVES ASSOCIATED WITH CERTAIN PRODUCT LINES IOMEGA ALSO EXPECTS A LOSS IN NINETEEN NINETY FOUR NOTWITHSTANDING THE RESTRUCTURING IOMEGA REPORTED A PRETAX LOSS OF THREE POINT EIGHT MILLION DOLLARS IT BLAMED A TWENTY FIVE PERCENT CUT EFFECTIVE SEPTEMBER FIRST IN THE PRICE OF ITS BERNOULLI PRODUCTS FOR THE DECLINE A YEAR EARLIER IOMEGA EARNED FORTY ONE THOUSAND DOLLARS ON SALES OF THIRTY SEVEN POINT FIVE MILLION DOLLARS FOR NINETEEN NINETY THREE IOMEGA HAD A LOSS OF FOURTEEN POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND SIXTEEN CENTS A SHARE ON SALES OF ONE HUNDRED FORTY SEVEN MILLION DOLLARS FOR NINETEEN NINETY TWO IT EARNED FOUR POINT SEVEN MILLION DOLLARS OR TWENTY NINE CENTS A SHARE ON SALES OF ONE HUNDRED THIRTY NINE MILLION DOLLARS THREE INDONESIAN BUSINESS GROUPS PLAN TO INVEST UP TO NINE HUNDRED MILLION DOLLARS IN A JAKARTA APARTMENT COMPLEX CONSISTING OF FORTY EIGHT TOWERS OF TWENTY FOUR STORIES EACH THE GROUPS PLAN TO BUILD THE KEMAYORAN GOLF APARTMENTS ON A SITE THAT WAS ONCE PART OF A FORMER AIRPORT IN NORTHEASTERN JAKARTA NEAR THE JAVA SEA THE GROUPS SIGNED A COOPERATION AGREEMENT WEDNESDAY WITH THE STATE AGENCY OVERSEEING DEVELOPMENT OF THE SITE THE APARTMENT COMPLEX WILL JOIN AN EXISTING TRADE EXHIBITION HALL IN WHAT THE AGENCY CALLS KEMAYORAN NEW CITY THE THREE INVESTORS ARE P. T. KEMAYORANLAND PART OF THE NAPAN GROUP P. T. SARI ORCHID PARAMA OF THE MANUFACTURING AND FINANCE BASED GADJAH TUNGGAL GROUP AND P. T. AMCOL AGUNGPERMANA WHICH DISTRIBUTES SONY PRODUCTS IN INDONESIA NAPAN GROUP WHICH HAS A PROPERTY ARM IS LED BY BUSINESSMAN HENRY PRIBADI WHO HAS OTHER VENTURES WITH TIMBER TYCOON PRAJOGO PANGESTU AND PRESIDENT SUHARTO'S SECOND SON BAMBANG TRIHATMODJO THE AMCOL DIRECTOR WHO SIGNED WEDNESDAY'S AGREEMENT SUGIANTO KUSUMA IS ALSO A CO INVESTOR WITH MR. BAMBANG IN A COMPANY APPOINTED BY THE GOVERNMENT TO OWN AND MANAGE INDONESIA'S NEW GENERATION OF PALAPA COMMUNICATIONS SATELLITES J. F. MA'ROEF EXECUTIVE DIRECTOR OF P. T. KEMAYORANLAND SAID PLANS CALL FOR THE INVESTORS TO EACH BUILD SIXTEEN TOWERS IN THE KEMAYORAN GOLF APARTMENTS PROJECT HE SAID EACH GROUP WILL LIKELY INVEST ABOUT THREE HUNDRED MILLION DOLLARS AND THAT CONSTRUCTION SHOULD BEGIN IN EARLY NINETEEN NINETY FIVE WITHIN FIVE YEARS HE SAID ALL OF THE TOWERS TOTALING MORE THAN FIVE THOUSAND UNITS SHOULD BE COMPLETED ONE JAKARTA PROPERTY CONSULTANT SAID THE COMPLEX IS QUOTE AWFULLY AMBITIOUS QUOTE AND QUOTE IT'S VERY HARD TO SEE HOW THAT MANY UNITS WILL BE TAKEN UP QUOTE MR. MA'ROEF AGREED THE PROJECT IS AMBITIOUS BUT PREDICTED DEMAND FOR THE APARTMENTS WILL BE STRONG JAKARTA'S PROPERTY MARKET PARTICULARLY FOR APARTMENTS IS GROWING WITH MANY SMALLER PROJECTS ALREADY UNDER CONSTRUCTION THE KEMAYORAN GOLF APARTMENTS INVESTORS EXPECT THAT INDONESIA WILL SOON FINISH AMENDING LAND LAWS TO ALLOW FOREIGNERS TO OWN APARTMENTS APARTMENT LIVING IS NOT POPULAR WITH INDONESIANS BUT MR. MA'ROEF SAID IT IS BECOMING ACCEPTED BECAUSE OF TRAFFIC PROBLEMS HE SAID FINANCING PLANS FOR THE APARTMENT PROJECT ARE BEING MADE BUT NO DETAILS WERE AVAILABLE SALES OF DIET FOODS ARE SHAPING UP IN EUROPE THANKS TO NEW PRODUCTS AND HEAVY ADVERTISING THE NINETEEN EIGHTY NINE LAUNCH OF SLIM FAST THE POWDERED DIET DRINK BY NEW YORK BASED SLIM FAST FOOD COMPANY HAS BOOSTED BRITAIN'S STAGNANT DIET FOOD SECTOR AND MARKETERS SAY WAIST WATCHERS ON THE CONTINENT OFFER SIMILAR POTENTIAL FOR GROWTH IN BRITAIN RETAIL SALES OF DIET FOODS GREW FOURTEEN PERCENT LAST YEAR AFTER A THIRTY SEVEN PERCENT CLIMB IN NINETEEN NINETY TWO ACCORDING TO A SURVEY BY MINTEL INTERNATIONAL A LONDON BASED MARKET RESEARCH CONCERN WITHIN FOUR YEARS MINTEL PREDICTS THE MARKET WILL GROW ANOTHER TWELVE PERCENT AS DIET FOODS ARE WORKING TO CHANGE THEIR IMAGE FROM MEDICINE TO CONVENIENCE PRODUCTS AND FROM CHEMICAL LADEN CONCOCTIONS TO FUN FILLED FARE FOR MODERN LIFESTYLES IN BRITAIN DIET FOODS' EXPANSION FROM PHARMACIES ONTO SUPERMARKET SHELVES IS FURTHER BOOSTING THEIR POPULARITY QUOTE WITH PHARMACIES YOU ALWAYS HAD THE CONNOTATION OF A MEDICAL PROBLEM QUOTE EXPLAINS PETER MENSING A CONSULTANT WITH BOOZ ALLEN AND HAMILTON LIMITED WIDER DISTRIBUTION AND ADVERTISING ALLOWS FOR IMPULSE BUYING HE SAYS DEMOGRAPHIC TRENDS ALSO FAVOR DIET FOODS BY NINETEEN NINETY SEVEN THE NUMBER OF WOMEN IN BRITAIN AGED TWENTY FIVE TO FIFTY FOUR WILL INCREASE FOUR PERCENT ACCORDING TO MINTEL BRITISH WOMEN ALSO ARE GIVING BIRTH LATER IN LIFE AND ARE SUFFERING MORE FROM POSTPREGNANCY WEIGHT GAIN AS A RESULT THE FIRM SAYS MEAL REPLACEMENT DRINKS AND FOOD ARE A CURRENT FAVORITE BUT LIKE CRASH DIET PLANS AND APPETITE SUPPRESSANT PILLS THESE NEWER PRODUCTS ARE STRUGGLING AGAINST CONSUMERS' GROWING TASTE FOR NATURAL FOODS GENERALLY HEALTHIER EATING HABITS THAT MAKE DIETS OBSOLETE WELL PUBLICIZED DANGERS OF EXCESSIVE DIETING AND CAUTIOUS CONSUMER SPENDING AT THE END OF BRITAIN'S RECESSION AT A SUPERMARKET IN CENTRAL LONDON FOR INSTANCE A SIX SERVING BOX OF SLIM FAST'S DRIED SOUP COSTS SIX POUNDS AND FORTY NINE PENCE ABOUT NINE DOLLARS AND SEVENTY CENTS DIET FOOD MAKERS ARE FIGHTING POTENTIAL SALES HURDLES BY BOOSTING ADVERTISING BUDGETS BETWEEN NINETEEN EIGHTY EIGHT AND NINETEEN NINETY TWO BRITISH AD SPENDING ON DIET MEALS GREW MORE THAN ONE AND ONE HALF TIMES TO SEVEN POINT SIX MILLION POUNDS MINTEL SAID LAST YEAR SLIM FAST ALONE HAD A GROSS ADVERTISING EXPENDITURE OF EIGHT MILLION POUNDS WE'RE MAKING A TOP QUALITY PRODUCT PRESENTED BY CONTINUOUS FORCEFUL ADVERTISING SAYS JOHN COSTA WHO HEADS SLIM FAST'S INTERNATIONAL OPERATIONS IN PARIS GERMANY'S BIONORM A DIET FOOD MAKER OWNED BY CHEMICALS MAKER E. MERCK CHEMISCHE FABRIK OHG IS DOUBLING ITS AD SPENDING THIS YEAR AFTER SLIM FAST'S INTENSIVE MARKETING EFFORT UPON ITS ARRIVAL ON GERMAN STORE SHELVES IN MARCH NINETEEN NINETY THREE MARKETERS SAY CONSUMERS' LACK OF LOYALTY TOWARD DIET FOOD BRANDS ALSO CALLS FOR A PROMOTIONAL PUSH STRONGER THAN THAT REQUIRED BY OTHER CONSUMER GOODS DIETERS ARE EXTREMELY PROMISCUOUS SAYS ALLYSON STEWART OF A. A. I. CONSULTANTS IN LONDON IT'S STUCK IN THEIR HEAD THAT THE PRODUCT DIDN'T WORK EVEN THOUGH IT DID AND THEY JUST PUT THE WEIGHT BACK ON SHE EXPLAINS SLIM FAST HAS POURED A LOT INTO ADVERTISING AND IT WORKED OBSERVES MICHELE SIMMONS EDITOR OF BRITAIN'S SLIMMING MAGAZINE QUOTE THEY PROMOTED IT MADE SURE IT'S AVAILABLE EVERYWHERE AND IT'S REALLY CAUGHT ON NOW QUOTE IN BRITAIN SLIM FAST HOLDS AN EIGHTY PERCENT SHARE OF THE DIET FOOD MARKET COMPARED WITH EIGHT PERCENT FOR NESTLE S. A.'S CARNATION SLENDER FIVE PERCENT FOR SHAPERS THE STORE BRAND OF THE BOOTS COMPANY DRUGSTORE CHAIN AND FOUR PERCENT FOR SCHOLL P. L. C.'S LIMMITS BRAND IN GERMANY SLIM FAST HAS CONQUERED OVER TWO THIRDS OF THE MARKET WITHIN TEN MONTHS OF ITS LAUNCH INDUSTRY LEADERS ARE TRYING TO SUSTAIN THE CURRENT CRAZE FOR MEAL REPLACEMENTS WITH A COLORFUL RANGE OF RELAUNCHES AND LINE EXTENSIONS SLIM FAST HAS COMPLEMENTED ITS INSTANT DRINKS WITH SOUPS NUTRITION BARS AND READY TO DRINK JUICES NESTLE'S CARNATION SLENDER RECENTLY LAUNCHED A NEW FORMULA WITH A HIGHER FIBER CONTENT AND BOOTS SAYS IT'S DEVELOPING MORE UNUSUAL DIET FOODS SUCH AS COMPLETE DIET LUNCHES OR ICE CREAMS TO BROADEN SALES MANUFACTURERS ARE TARGETING ANOTHER MARKET SEGMENT MEN IT'S STILL AN UNTAPPED AREA SAYS SLIMFAST'S MR. COSTA MEN HAVEN'T REALIZED THAT OVERWEIGHT EQUALS HEALTH PROBLEMS HE LAMENTS IN GERMANY FOR INSTANCE SLIM FAST ADS FEATURE ONLY MALE TELEVISION STARS WOMEN ALSO FIND IT INTERESTING IF A MAN LOSES WEIGHT FOR A CHANGE ADDS AN EXECUTIVE ON THE SLIM FAST ACCOUNT AT GREY ADVERTISING INCORPORATED IN DUESSELDORF IT ADDS TO THE CREDIBILITY SHE EXPLAINS THE SECURITIES AND EXCHANGE COMMISSION'S MARKET TWO THOUSAND REPORT SHAPED UP AS SOMETHING THAT ONLY AN INVESTOR COULD WHOLLY LOVE IF THE RECOMMENDATIONS CONTAINED IN THE REPORT BECOME REALITY INVESTORS' BUY AND SELL ORDERS WILL BE EXPOSED TO A MUCH BROADER RANGE OF ORDERS FROM OTHER INVESTORS THE RESULT WILL BE STOCK PRICES CLOSER TO WHAT THE CUSTOMERS WANT PARTLY BECAUSE THE PRICES WILL BE MEASURED IN TENTHS OF A DOLLAR RATHER THAN EIGHTHS THAT'S A BIG IF THOUGH MANY OF THE RECOMMENDATIONS MADE BY THE S. E. C.'S MARKET REGULATION DIVISION WILL REQUIRE ACTION BY THE MARKETS NOT THE S. E. C. OR CONGRESS AND THE MARKETS WEREN'T EXACTLY FALLING OVER THEMSELVES TO EMBRACE THE PROPOSED CHANGES AFTER THE REPORT WAS RELEASED YESTERDAY AMONG THE CONTROVERSIAL SUGGESTIONS A REQUIREMENT THAT MARKETS PUBLICLY DISPLAY CUSTOMER ORDERS TO BUY OR SELL AT A SPECIFIC PRICE SUCH ORDERS CALLED LIMIT ORDERS AREN'T CURRENTLY MADE PUBLIC AND THEREFORE CAN EASILY MISS BEING EXECUTED THE PROPOSAL WILL HAVE THE BIGGEST EFFECT ON THE NASDAQ AND OTHER ELECTRONIC TRADING SYSTEMS RICHARD KETCHUM CHIEF OPERATING OFFICER OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SAID THE PROPOSED DISPLAY OF LIMIT ORDERS WOULD REQUIRE QUOTE A MAJOR STRUCTURAL CHANGE QUOTE HE ADDED WITH A MARKED LACK OF ENTHUSIASM THAT IS SOMETHING THAT WE CERTAINLY WILL TAKE A LOOK AT SIMILARLY NEITHER NASDAQ NOR SOME OF THE EXCHANGES ARE WILD ABOUT MOVING TO PRICING STOCKS IN DECIMALS IT'S SUCH A POTENTIALLY TRAUMATIC STEP THAT I HOPE WE TAKE A REAL SERIOUS LOOK AT IT BEFORE MOVING IN THAT DIRECTION SAID NICHOLAS GIORDANO PRESIDENT OF THE PHILADELPHIA STOCK EXCHANGE NASDAQ MEANWHILE IS IN THE PROCESS OF ADOPTING THE MARKET TWO THOUSAND RECOMMENDATION FOR AN INTERIM STEP REPORTING STOCK PRICES IN SIXTEENTHS RATHER THAN EIGHTHS BEYOND THAT WE'RE NOT GOING TO REACH A CONCLUSION UNTIL WE LOOK AT DECIMALIZATION MR. KETCHUM SAID ON THE OTHER HAND NASDAQ AND MR. KETCHUM ARE DOWNRIGHT PERKY ABOUT THE MARKET TWO THOUSAND RECOMMENDATION THAT WOULD MAKE IT EASIER FOR COMPANIES TO MOVE THEIR LISTINGS OFF THE BIG BOARD AND A SEPARATE PROPOSAL THAT WOULD LIGHTEN AFTER HOUR TRADING RESTRICTIONS ON FIRMS THAT ARE MEMBERS OF THE NEW YORK STOCK EXCHANGE WE'RE DELIGHTED BY THE PRO COMPETITIVE SPIRIT OF THE REPORT MR. KETCHUM SAID THE BIG BOARD'S FEELINGS COULDN'T BE ASCERTAINED OFFICIALS DECLINED TO COMMENT IN DETAIL ON THE REPORT SAYING THEY NEEDED MORE TIME TO STUDY IT IN A STATEMENT THE EXCHANGE COMMENDED THE S. E. C. STAFF FOR THE DEPTH AND SCOPE OF THE MARKET TWO THOUSAND REPORT THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP FOR WALL STREET FIRMS WAS MORE SPECIFIC ABOUT THE REPORT'S DEPTH QUOTE THE REPORT RUNS SEVERAL HUNDRED PAGES REPRESENTING SOME VERY HARD WORK BY THE S. E. C. STAFF QUOTE SAID MARC LACKRITZ THE S. I. A.'S PRESIDENT ADDING QUOTE UNTIL WE HAVE HAD AN OPPORTUNITY TO THOROUGHLY READ THE REPORT WE CAN'T COMMENT ON ANY SPECIFIC RECOMMENDATION QUOTE ONLY ONE OF THE SEVENTEEN MAIN RECOMMENDATIONS IN MARKET TWO THOUSAND IS BELIEVED TO REQUIRE LEGISLATION SUBJECTING NASDAQ TRANSACTIONS TO THE SAME FEES THAT TRANSACTIONS IN BIG BOARD AND AMERICAN STOCK EXCHANGE LISTED STOCKS ARE NOW CHARGED WHICH WOULD RAISE ABOUT TWENTY NINE MILLION DOLLARS FOR THE S. E. C. BUT KEY MEMBERS OF CONGRESS WEIGHED IN ON THE REPORT NONETHELESS SENATOR CHRISTOPHER DODD D. CONNECTICUT CHAIRMAN OF THE SENATE SECURITIES SUBCOMMITTEE SAID HE MAY NOT NECESSARILY ENDORSE ALL OF THE S. E. C. RECOMMENDATONS BUT I EXPECT THE REPORT WILL SERVE AS A SORT OF ROAD MAP IN SHOWING THE WAY TOWARD MORE EFFICIENT ACCESSIBLE AND USER FRIENDLY MARKETS REPRESENTATIVE EDWARD MARKEY CHAIRMAN OF THE HOUSE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE SAID HE WAS PLEASED WITH MOST OF THE RECOMMENDATIONS IN THE MARKET TWO THOUSAND REPORT THE KEY QUESTION NOW IS WHETHER THE COMMISSION AND THE EXCHANGES WILL MOVE QUICKLY TO IMPLEMENT THE STAFF'S RECOMMENDATIONS FOR REFORM OR WHETHER THESE RECOMMENDATIONS WILL LANGUISH THE MASSACHUSETTS DEMOCRAT SAID OVER THE NEXT FEW MONTHS THE SUBCOMMITTEE WILL BE HOLDING HEARINGS TO HEAR FROM S. E. C. CHAIRMAN ARTHUR LEVITT AND THE INDUSTRY ON WHAT CONCRETE STEPS THEY ARE TAKING TO IMPLEMENT THE SPECIFIC RECOMMENDATIONS SET FORTH IN THE REPORT MR. MARKEY ADDED GARY E. GARDNER THIRTY NINE YEARS OLD WAS NAMED A DIRECTOR OF THE CONSUMER PRODUCTS MANUFACTURER FILLING A VACANCY ON THE TEN MEMBER BOARD MR. GARDNER IS PRESIDENT OF SOFT SHEEN PRODUCTS INCORPORATED A CHICAGO MAKER OF HEALTH AND BEAUTY PRODUCTS SECURITIES AND EXCHANGE COMMISSION MEMBER RICHARD ROBERTS CAUTIONED SECURITIES FIRMS THAT SELL TAX EXEMPT DERIVATIVES TO TAKE QUOTE ALL REASONABLE STEPS NECESSARY QUOTE TO MAKE SURE THE SECURITIES ARE SUITABLE INVESTMENTS FOR PROSPECTIVE BUYERS DERIVATIVES ARE FINANCIAL PRODUCTS WHOSE VALUE IS DERIVED FROM AN UNDERLYING ASSET RATE OR INDEX MR. ROBERTS SAID REGULATORY CONCERNS ABOUT CUSTOMER LIABILITY HAVE GROWN AS INVESTMENT IN TAX EXEMPT DERIVATIVE SECURITIES HAS BROADENED HE ESTIMATED THAT AT LEAST TEN BILLION DOLLARS OF TAX EXEMPT DERIVATIVE SECURITIES WERE ISSUED LAST YEAR ALONE AND SAID AN EXPECTED FALL OFF IN OVERALL MUNICIPAL BOND VOLUME THIS YEAR COULD SPUR GREATER DEMAND FOR SUCH DERIVATIVES HE SAID MOST TAX EXEMPT DERIVATIVE PRODUCTS HAVE BEEN DEVELOPED IN AN ENVIRONMENT OF FALLING INTEREST RATES AND RELATIVELY FAVORABLE RETURNS FOR MUNICIPALS AND HE CAUTIONED THAT THE LIQUIDITY OF SOME OF THESE PRODUCTS IN A RISING INTEREST RATE ENVIRONMENT IS UNKNOWN HE NOTED THAT A SPECIAL SUITABILITY RULE FOR MUNICIPAL BOND DERIVATIVES IS POSSIBLE SUITABILITY RULES AS THEIR NAME IMPLIES ARE MEANT TO PROTECT CONSUMERS FROM MAKING INVESTMENTS THAT AREN'T SUITED TO THEIR FINANCIAL NEEDS AT THE SAME TIME THE S. E. C. FILED FOR PUBLIC COMMENT A PROPOSAL BY THE MUNICIPAL SECURITIES RULEMAKING BOARD TO STRENGTHEN THE BOARD'S CUSTOMER SUITABILITY RULES THE PROPOSAL WOULD TIGHTEN THE RULES BY REMOVING LANGUAGE THAT WAS PERCEIVED BY SOME AS PROVIDING LOOPHOLES TO THE GENERAL REQUIREMENT THAT BEFORE RECOMMENDING AN INVESTMENT TO A CUSTOMER A DEALER FIRST MUST DETERMINE THAT THE PROPOSED INVESTMENT IS SUITABLE FOR THE CUSTOMER THE S. E. C. INVITED INTERESTED PARTIES TO SUBMIT COMMENTS BY FEBRUARY SEVENTEENTH MR. ROBERTS ALSO SAID THE S. E. C. SHOULD RECONSIDER A REGULATORY CHANGE THAT HAS MADE IT EASIER FOR OPEN END MUTUAL FUNDS TO INCREASE THEIR HOLDINGS OF DERIVATIVE INSTRUMENTS BY ALLOWING THEM TO RAISE TO FIFTEEN PERCENT FROM TEN PERCENT THE AMOUNT OF ILLIQUID ASSETS THEY MAY HOLD MOTHER NATURE HAS BEEN BUSY VISITING FIRES STORMS AND FLOODS UPON THE AUSTRALIAN INSURANCE INDUSTRY BUT SO FAR THAT HASN'T BEEN ENOUGH TO KEEP F. A. I. INSURANCES LIMITED IN RED INK AGAIN THIS FISCAL YEAR ITS CHIEF EXECUTIVE RODNEY ADLER SAID IN AN INTERVIEW HE SAID THE INSURER IS LOOKING FORWARD TO POSTING A PROFIT FOR THE FISCAL YEAR ENDING JUNE THIRTIETH ITS FIRST IN FOUR YEARS FOR THE SIX MONTHS ENDED DECEMBER THIRTY FIRST MR. ADLER SAID HE EXPECTS THE COMPANY TO QUOTE CERTAINLY QUOTE REPORT AN AFTER TAX PROFIT WE'RE IN PROFIT MR. ADLER SAYS WE'RE BACK THE COMPANY EXPECTS TO DISCLOSE THOSE RESULTS IN MID FEBRUARY BY COMPARISON F. A. I. POSTED A LOSS OF SIX POINT FIVE MILLION AUSTRALIAN DOLLARS FOUR POINT SIX MILLION U. S. DOLLARS IN THE YEAR EARLIER HALF FOR ALL OF FISCAL NINETEEN NINETY THREE F. A. I. REPORTED A LOSS OF TEN POINT EIGHT MILLION AUSTRALIAN DOLLARS ON OPERATING REVENUE OF ONE POINT ONE THREE BILLION AUSTRALIAN DOLLARS WILL THE PROFITABLE TREND CONTINUE THROUGHOUT THIS YEAR WE DON'T LIKE TO MAKE FORECASTS BUT I IMAGINE THE ANSWER IS YES MR. ADLER SAID HOWEVER HE ADDS THE CAVEAT WE'RE IN THE RISK BUSINESS SO YOU NEVER KNOW BUT WE DON'T LIKE TO MAKE LOSSES SO FAR THIS FISCAL YEAR QUOTE CLAIMS HAVE BEEN WORSE THAN ANTICIPATED QUOTE HE SAID MAINLY BECAUSE OF A HAILSTORM AND THE RECENT BUSH FIRES THAT SWEPT ACROSS THE STATE OF NEW SOUTH WALES ADDING TO THE STRING OF BAD NEWS FOR INSURERS ON THE PAYOUT FRONT HE SAID ARE FLASH FLOODS IN THE STATE OF TASMANIA AND A CYCLONE IN QUEENSLAND STATE F. A. I. ISN'T DIRECTLY EXPOSED TO THE LOS ANGELES EARTHQUAKE BUT EVEN THAT IS HAVING AN INDIRECT IMPACT THE AUSTRALIAN INSURER EXPECTS THE BILLS FROM THAT DISASTER TO ADD TO THE PRESSURE WORLD WIDE TO BOOST THE COST OF REINSURANCE FINAL FIGURES AREN'T IN FOR SOME OF THE DISASTER RELATED CLAIMS IN AUSTRALIA BUT MR. ADLER SAYS CLAIMS FROM THE RECENT BUSH FIRES ARE LIKELY TO COST F. A. I. BETWEEN TWO MILLION AUSTRALIAN DOLLARS AND TWO POINT FIVE MILLION AUSTRALIAN DOLLARS WHICH HE INDICATED WOULD HAVE A MINIMAL IMPACT ON THE COMPANY'S RESULTS STILL MR. ADLER SAYS OUR RECOVERY CONTINUES AND PREMIUM INCOME CONTINUES TO GROW COMMENTING ON F. A. I.'S POTENTIAL PERFORMANCE ROB MCWILLIAMS AN ANALYST WHO TRACKS F. A. I. AT BROKERAGE FIRM MCINTOSH AND COMPANY SAID IN AN INTERVIEW THAT HE WOULDN'T BE SURPRISED IF F. A. I. POSTS A SMALL PROFIT BUT HE'S LOOKING MORE FOR A BREAK EVEN RESULT IN THE FULL YEAR THE INSURER'S SHARES SANK TO LOWS IN APRIL TRADING AROUND FORTY TWO AUSTRALIAN CENTS EACH ON THE AUSTRALIAN STOCK EXCHANGE THEY HAVE REBOUNDED SINCE CLOSING THURSDAY AT ONE AUSTRALIAN DOLLAR AND TWENTY TWO CENTS UP FIVE CENTS FROM THE PREVIOUS CLOSE GIVEN THAT F. A. I. STILL HAS A LOT OF HURDLES TO OVERCOME PAST UNDERWRITING AND INVESTMENT MISTAKES BEFORE IT PROVES ITSELF TO INVESTORS MR. MCWILLIAMS IS TELLING HIS CLIENTS THAT AT THE CURRENT PRICE IT'S TOO EARLY TO PAY THAT MUCH FOR HIS PART F. A. I.'S MR. ADLER ARGUES THAT AT THIS STAGE OF THE COMPANY'S RECOVERY THE STOCK WOULD BE FAIRLY VALUED AT BETWEEN ONE AUSTRALIAN DOLLAR AND TWENTY CENTS AND ONE AUSTRALIAN DOLLAR AND FIFTY CENTS A SHARE TO THOSE SHAREHOLDERS LOOKING FOR DIVIDENDS MR. ADLER SAID THEY'LL BE OUT OF LUCK AT LEAST FOR THE FIRST HALF DEPENDING ON THE SIZE OF THE PROFIT FOR THE FULL YEAR THOUGH HE SAID THE BOARD WILL CONSIDER PAYING A DIVIDEND F. A. I. LAST PAID AN ANNUAL DIVIDEND IN NINETEEN NINETY ONE OF FOUR AUSTRALIAN CENTS A SHARE SINCE AUGUST F. A. I. HAS RAISED FORTY THREE MILLION AUSTRALIAN DOLLARS THROUGH PLACEMENTS OF ITS SHARES AMONG THEM WAS AN ISSUE OF NEW STOCK ANNOUNCED IN OCTOBER THAT RAISED TWENTY SIX MILLION AUSTRALIAN DOLLARS FROM QUANTUM EMERGING GROWTH PARTNERS C. V. GIVING THE UNIT OF FINANCIER GEORGE SOROS'S U. S. INVESTMENT GROUP A TEN PERCENT STAKE IN F. A. I. MR. ADLER SAID F. A. I. CURRENTLY DOESN'T HAVE ANY PLANS TO OFFER MORE EQUITY THE AUSTRALIAN SHARE MARKET SURGED FORTY PERCENT LAST YEAR AND HAS GAINED AN ADDITIONAL THREE POINT FIVE PERCENT SINCE JANUARY FIRST MR. ADLER SAID F. A. I. IS CURRENTLY QUOTE CASHED UP QUOTE HAVING TAKEN ADVANTAGE OF THE STRONG STOCK MARKET TO REALIZE SOME OF ITS INVESTMENTS I'VE TAKEN THE VIEW THAT THE MARKET IS EXPENSIVE AND WE'VE TAKEN A LOT OF PROFIT HE SAID IN ASIA F. A. I. HAS BOUGHT A SMALL LICENSED INSURER IN HONG KONG THAT IT RENAMED F. A. I. FIRST PACIFIC INSURANCE COMPANY WHICH WRITES SPECIALIZED INSURANCE BUSINESS SUCH AS WORKMEN'S COMPENSATION AND COMPANY DIRECTORS' LIABILITY INSURANCE AS FOR EXPANSION IN ASIA MR. ADLER SAID IT'S SLOWLY SLOWLY FOR US WHILE F. A. I. INTENDS TO EXPAND MOSTLY IN GENERAL INSURANCE IT CURRENTLY DOESN'T HAVE ANY PLANS TO TARGET THE CHINA MARKET UNLIKE MANY OTHER INTERNATIONAL INSURERS CANADIAN BANKRUPTCIES TOTALED FIVE THOUSAND SIX HUNDRED TWENTY NINE IN NOVEMBER A NINE POINT FOUR PERCENT DECLINE FROM SIX THOUSAND TWO HUNDRED FIFTEEN A YEAR EARLIER THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT SAID FOR JANUARY THROUGH NOVEMBER BANKRUPTCIES TOTALED SIXTY ONE THOUSAND EIGHT HUNDRED TWENTY A TWELVE PERCENT DECLINE FROM SEVENTY THOUSAND THREE HUNDRED FORTY ONE A YEAR EARLIER PETER BERG FIFTY SEVEN YEARS OLD WAS ELECTED A DIRECTOR OF THIS ENGINEERING CONCERN INCREASING THE SIZE OF THE BOARD TO EIGHT MR. BERG IS PRESIDENT OF BERG SYSTEMS INTERNATIONAL INCORPORATED A SUBSIDIARY WHICH S. B. S. ACQUIRED IN AUGUST NINETEEN NINETY TWO NORWAY'S JANUARY UNEMPLOYMENT RATE ROSE TO FIVE POINT NINE PERCENT OF THE WORK FORCE FROM FIVE POINT THREE PERCENT IN DECEMBER ACCORDING TO THE NORWEGIAN LABOR DIRECTORATE THE NUMBER OF PEOPLE IN STATE LABOR MARKET EMPLOYMENT PROGRAMS WAS TWO POINT SEVEN PERCENT OF THE WORK FORCE OR FIFTY SEVEN THOUSAND THREE HUNDRED IN JANUARY THIS NUMBER IF ADDED TO UNEMPLOYMENT FIGURES WOULD BRING UNEMPLOYMENT IN JANUARY TO EIGHT POINT SIX PERCENT THE DIRECTORATE SAID ATKINSON COMPANY OF CALIFORNIA SAID ITS OPERATING UNIT ATKINSON CONSTRUCTION HAS BEEN AWARDED A FOURTEEN POINT FOUR MILLION DOLLAR CONTRACT FROM THE CALIFORNIA DEPARTMENT OF TRANSPORTATION THE CONTRACT IS FOR REPAIRING EARTHQUAKE DAMAGE AND RETROFITTING A PORTION OF THE INTERSTATE TWO HUNDRED EIGHTY FREEWAY VIADUCT IN SAN FRANCISCO THE PROJECT IS SCHEDULED FOR COMPLETION IN THIRTEEN MONTHS ATKINSON SAID FEDERATED DEPARTMENT STORES INCORPORATED IS EXPECTED TODAY TO NAME HAROLD KAHN A FORMER TOP EXECUTIVE OF R. H. MACY AND COMPANY HEAD OF ITS ABRAHAM AND STRAUS SLASH JORDAN MARSH UNIT ITS LARGEST DIVISION MR. KAHN WILL BE NAMED CHAIRMAN AND CHIEF EXECUTIVE OF THE UNIT WHICH HAD SALES OF ONE POINT FOUR TWO BILLION DOLLARS IN ITS MOST RECENT FISCAL YEAR OR ABOUT ONE FIFTH OF FEDERATED'S ANNUAL SALES OF ABOUT SEVEN BILLION DOLLARS A FEDERATED SPOKESWOMAN WOULDN'T CONFIRM THE APPOINTMENT WHICH HAD BEEN RUMORED EARLIER THIS WEEK THE FORTY EIGHT YEAR OLD MR. KAHN WOULD TAKE OVER AN UNDER PERFORMING DIVISION THAT FEDERATED EXECUTIVES ARE HOPING TO RESUSCITATE IN NINETEEN NINETY TWO CINCINNATI BASED FEDERATED MERGED THE HEADQUARTERS OPERATIONS OF A AND S. AND THE BOSTON BASED JORDAN MARSH UNITS IN A COST CUTTING MOVE BUT THE UNIT'S OPERATING PROFITS ARE BELIEVED TO BE THE LOWEST IN THE FEDERATED CHAIN THAT WEAK PERFORMANCE MAY HAVE LED TO THE DEPARTURE LAST WEEK OF CHAIM Y. EDELSTEIN CHAIRMAN OF THE BROOKLYN N. Y. BASED ABRAHAM AND STRAUS UNIT SINCE NINETEEN EIGHTY FIVE WHO SUDDENLY RESIGNED AS HEAD OF THE UNIT QUOTE TO PURSUE OTHER INTERESTS QUOTE ACCORDING TO A COMPANY STATEMENT MR. KAHN'S APPOINTMENT COMES AT A CRUCIAL TIME FOR FEDERATED WHICH HAS BOUGHT A LARGE CHUNK OF MACY'S DEBT WHILE IT OPERATES UNDER BANKRUPTCY LAW PROTECTION FEDERATED HAS SAID IT WANTS TO MERGE WITH MACY TO FORM THE COUNTRY'S LARGEST DEPARTMENT STORE CHAIN FEDERATED IS HIRING A MAN WITH EXTENSIVE KNOWLEDGE OF MACY'S OPERATIONS AT LEAST BEFORE THE RETAILER FILED FOR FEDERAL BANKRUPTCY LAW PROTECTION IN NINETEEN NINETY TWO MR. KAHN JOINED MACY IN NINETEEN SEVENTY FIVE AND WORKED AS A CHIEF MERCHANT IN SEVERAL KEY MERCHANDISE AREAS HE BECAME CHAIRMAN OF MACY'S SOUTH DIVISION IN NINETEEN EIGHTY NINE MR. KAHN LEFT MACY IN FEBRUARY NINETEEN NINETY TWO AND LATER THAT YEAR BECAME CORPORATE PRESIDENT AND SENIOR MERCHANT OF CHICAGO BASED MONTGOMERY WARD AND COMPANY BUT LAST DECEMBER AFTER FOURTEEN MONTHS AS MONTGOMERY WARD'S NUMBER TWO EXECUTIVE MR. KAHN UNEXPECTEDLY RESIGNED FROM THE CLOSELY HELD RETAILER MOST RECENTLY INDUSTRY EXECUTIVES SAID MR. KAHN WAS BEING CONSIDERED FOR THE JOB OF CHIEF EXECUTIVE OF ZALE CORPORATION THE COUNTRY'S LARGEST RETAIL JEWELER BASED IN DALLAS ACCORDING TO PEOPLE CLOSE TO THE SITUATION MR. KAHN WAS ALMOST APPROVED BY THE ZALE BOARD BUT HIS APPOINTMENT RAN INTO COMPLICATIONS AT THE FINAL HOUR EARLIER THIS WEEK MR. KAHN CONFIRMED HE HAD TALKED WITH ZALE A SPOKESWOMAN FOR ZALE SAID WHILE THE COMPANY IS STILL SEARCHING FOR A CHIEF EXECUTIVE IT DOESN'T COMMENT ON ANY EXECUTIVE SEARCHES RICHARD D. LODGE FORTY SIX WHO WAS SENIOR VICE PRESIDENT OF THIS BANK HOLDING COMPANY IN CHARGE OF THE FUNDS MANAGEMENT DIVISION WAS NAMED PRESIDENT OF BANC ONE FUNDS MANAGEMENT COMPANY A NEW UNIT THE APPOINTMENT IS EFFECTIVE IMMEDIATELY HIS RESPONSIBILITIES IN THE NEW POST INCLUDE ASSET AND LIABILITY MANAGEMENT AND INVESTMENT PORTFOLIO MANAGEMENT FOR BANC ONE AND ITS AFFILIATES REUTERS HOLDINGS P. L. C. SAID IT ACQUIRED A SEVENTY NINE PERCENT INTEREST IN REALITY TECHNOLOGIES INCORPORATED ON A FULLY DILUTED BASIS FOR THIRTEEN POINT EIGHT MILLION DOLLARS THE BRITISH INFORMATION SERVICES COMPANY SAID REALITY TECHNOLOGIES IS A CLOSELY HELD PENNSYLVANIA BASED COMPANY THAT DEVELOPS PERSONAL INVESTMENT TECHNOLOGY REALITY TECHNOLOGIES MARKETS ITS INVESTMENT SOFTWARE AND ON LINE SERVICES JOINTLY WITH TIME WARNER INCORPORATED'S MONEY MAGAZINE IT DEVELOPS AND SELLS PERSONAL FINANCIAL PLANNING SOFTWARE CALLED WEALTHBUILDER BY MONEY MAGAZINE SHAREHOLDERS OF THE DUTCH CHEMICAL GROUP AKZO N. V. APPROVED THE PREVIOUSLY ANNOUNCED MERGER WITH NOBEL INDUSTRIES A. B. OF SWEDEN THE STOCKHOLDERS ALSO APPROVED THE ISSUE OF UP TO SEVENTEEN MILLION AKZO SHARES TO FINANCE THE TAKEOVER OF NOBEL IN AN OFFER OF STOCK AND CASH AN AKZO SPOKESMAN SAID NOW THAT THE MERGER AND THE SHARE ISSUE HAVE BEEN APPROVED BY STOCKHOLDERS HIS COMPANY CAN GO AHEAD WITH THE PUBLIC TENDER OFFER FOR NOBEL IN THE COMING DAYS THE OFFER LIKELY WILL CLOSE IN MID FEBRUARY THERMO CARDIOSYSTEMS INCORPORATED IN THE EARLY STAGES OF MARKETING ITS HEART PUMP DEVICE EXPECTS FOURTH QUARTER NET INCOME OF ABOUT ONE HUNDRED SIXTY THOUSAND DOLLARS OR ONE CENT A SHARE ON ONE POINT ONE MILLION DOLLARS IN REVENUE VICTOR POIRIER CHIEF EXECUTIVE OFFICER SAID RESULTS WERE AIDED BY GROWING USE OF ITS HEARTMATE LEFT VENTRICULAR ASSIST DEVICE IT IS NOW SOLD ABROAD AND HAS BEEN RECOMMENDED FOR APPROVAL FOR U. S. SALE IN THE YEAR EARLIER FOURTH QUARTER THERMO CARDIOSYSTEMS HAD A NET LOSS OF TWENTY FOUR THOUSAND DOLLARS ON REVENUE OF FIVE HUNDRED EIGHTY ONE THOUSAND DOLLARS SINCE THEN ITS STOCK HAS SPLIT TWO FOR ONE FOR THE FULL YEAR MR. POIRIER SAID THERMO CARDIOSYSTEMS EXPECTS TO REPORT NET INCOME OF ABOUT FOUR HUNDRED FIVE THOUSAND DOLLARS OR TWO CENTS A SHARE UP FROM NET OF EIGHTEEN THOUSAND DOLLARS IN NINETEEN NINETY TWO REVENUE GREW TO THREE POINT FIVE MILLION DOLLARS FROM TWO POINT FOUR MILLION DOLLARS MR. POIRIER SAID HE EXPECTS THERMO CARDIOSYSTEMS THIS YEAR TO DOUBLE NET INCOME AND REVENUE THE COMPANY EXPECTS TOTAL HEARTMATE IMPLANTS THIS YEAR OF TWO HUNDRED TO THREE HUNDRED UP FROM LAST YEAR'S EIGHTY THE DEVICE PUMPS BLOOD TO ASSIST WEAK HEARTS IN DECEMBER A U. S. FOOD AND DRUG ADMINISTRATION PANEL RECOMMENDED F. D. A. APPROVAL OF HEARTMATE FOR SEVERELY ILL CARDIAC PATIENTS AWAITING HEART TRANSPLANTS THERE ARE ABOUT TWO THOUSAND TRANSPLANTS ANNUALLY MR. POIRIER SAID HE EXPECTS FINAL F. D. A. APPROVAL BY JULY THE UNIT WHICH COSTS ABOUT THIRTY THOUSAND DOLLARS IS SURGICALLY IMPLANTED AND POWERED BY A PORTABLE BRIEFCASE SIZED AIR COMPRESSOR THAT REMAINS OUTSIDE THE BODY MR. POIRIER SAID A SMALLER BATTERY POWERED VERSION IS PLANNED MEANWHILE MR. POIRIER SAID THE F. D. A. HAS CLEARED HEARTMATE FOR SHIPMENT TO FOURTEEN FOREIGN COUNTRIES IN SEVEN INCLUDING BRITAIN FRANCE ITALY SWEDEN TAIWAN SAUDI ARABIA AND THE NETHERLANDS IT MAY BE SOLD COMMERCIALLY HE SAID MR. POIRIER SAID THAT ULTIMATELY THERMO CARDIOSYSTEMS HOPES TO SELL HEARTMATE TO THE TWO HUNDRED THOUSAND PEOPLE IN THE U. S. WHO QUOTE ARE IN A SLOW DEBILITATING PROCESS WHEN THEIR HEART HAS LOST THE ABILITY TO PUMP NORMALLY QUOTE UNIVERSAL FOODS CORPORATION SAID ITS BOARD HAS AUTHORIZED THE REPURCHASE OF AS MANY AS TWO POINT FIVE MILLION SHARES OR ABOUT TEN PERCENT OF THE COMPANY'S COMMON STOCK IN A NEWS RELEASE THE COMPANY SAID THE SHARES MAY BE REPURCHASED OVER A NUMBER OF YEARS AND USED FOR A VARIETY OF CORPORATE PURPOSES UNIVERSAL FOODS REPURCHASED FOUR HUNDRED FIFTY ONE THOUSAND SHARES OR ABOUT ONE POINT SEVEN PERCENT OF COMPANY STOCK OUTSTANDING DURING THE FOURTH QUARTER OF NINETEEN NINETY THREE AND THE FIRST WEEK IN NINETEEN NINETY FOUR THAT DEPLETED AN AUTHORIZED AMOUNT APPROVED BY THE BOARD IN NINETEEN EIGHTY FOUR JOHN P. SIEGFRIED FIFTY FIVE YEARS OLD SECRETARY AND GENERAL COUNSEL WAS NAMED TO THE ADDITIONAL POST OF VICE PRESIDENT OF THIS MAKER OF PORTLAND AND MASONRY CEMENTS AND MINER AND PROCESSOR OF AGGREGATES AND INDUSTRIAL LIMESTONE PRODUCTS MR. SIEGFRIED IS RESPONSIBLE FOR MEDUSA'S LEGAL AFFAIRS REAL ESTATE EXECUTIVE BENEFITS AND SHAREHOLDER RELATIONS FUNCTIONS THE COMPANY ALSO PROVIDES CONSTRUCTION SERVICES FOR HIGHWAY SAFETY DAYS AFTER THE EARTHQUAKE PEOPLE HERE WERE STILL WAITING FOR THE DEVASTATION AROUND THEM TO SHOW UP ON THE T. V. NEWS CHOPPER TWO THE EYEWITNESS NEWS VANS AND ALL THE OTHER MEDIATORS OF LOCAL REALITY CONCENTRATED ON IMAGES OF DEATH AND DISLOCATION NEAR THE EPICENTER THIRTEEN MILES AWAY IN NORTHRIDGE THEY DOTED ON RUPTURED GAS LINES IN THE SAN FERNANDO VALLEY AND SHATTERED FREEWAYS NEAR SYLMAR YET THEY FAILED TO FOCUS ON THIS SEASIDE COMMUNITY OF HITHERTO SERENE BEAUTY MAYBE SANTA MONICA DOESN'T LOOK SERIOUS ENOUGH TO SUFFER MAYBE THE BEAUTY BEGUILED NEWS MANAGERS INTO THINKING WE HAD BREEZED THROUGH THE UPHEAVAL UNSCATHED JUST AS WE'D DONE IN NINETEEN NINETY TWO DURING THE RIOTS AND IN NINETEEN NINETY THREE DURING THE FIRES THAT NEVER SINGED SO MUCH AS A FROND OF OUR STATELY PALMS WHATEVER THE CASE WE STRUGGLED WITH COGNITIVE DISSONANCE NOT TO MENTION WRECKED NEIGHBORHOODS AND SHATTERED LANDMARKS WHAT RIGHT DID WE HAVE TO FEEL UNDONE IF T. V. NEWS HADN'T CERTIFIED OUR UNDOING THEN THE CAMERAS FINALLY MOVED IN WE SAW HOW WE LOOKED AND SOON FELT VINDICATED IN THE EYES OF WHAT WE HAD CONSIDERED THE REAL WORLD THIS IS NOT TO SAY THAT WE HAVE TURNED INTO A TENT CITY WITH THOUSANDS OF HOMELESS LINING UP FOR FOOD STAMPS AND POTABLE WATER AS IN OTHER AREAS OF LOS ANGELES MANY HOMEOWNERS HERE WOKE UP ON THE FATEFUL MORNING TO NOTHING WORSE THAN FALLEN CHIMNEYS BROKEN GLASS AND KITCHEN FLOORS AWASH IN OLIVE OIL COLD PRESSED EXTRA VIRGIN AND PURE MAPLE AS OPPOSED TO AUNT JEMIMA'S SYRUP BUT THE REAL SANTA MONICA IS MUCH MORE THAN ELEGANT HOMES HYPERCHIC SHOPS ON MONTANA AVENUE ROCK STARS IN RESIDENCE AT THE SHANGRI LA HOTEL AND ELIZABETH TAYLOR PERIODICALLY IN EXTREMIS AT SAINT JOHN'S HOSPITAL IT'S A CITY OF RENTERS STRINGENT RENT CONTROL LAWS A LEGACY OF TOM HAYDEN'S CRYPTO RADICAL TAKEOVER OF THE CITY COUNCIL TWO DECADES AGO AND SINGULAR POLITICS UNTIL HIS RECENT REMOVAL FROM OFFICE THE CITY ATTORNEY REFUSED TO PROSECUTE HOMELESS PERSONS ARRESTED FOR SLEEPING IN PARKS NOW IT'S ALSO THE RENTERS WHO ARE WITHOUT HOMES IF NOT LITERALLY HOMELESS FOR THE EARTHQUAKE'S GREATEST IMPACT IN SANTA MONICA WAS ON HUNDREDS OF FRAME AND STUCCO APARTMENT BUILDINGS THAT WERE SUPPOSED TO WITHSTAND A SIX POINT SIX RICHTER SCALE SHAKER AND DIDN'T OF THE TWENTY SIX APARTMENT BUILDINGS ON MY BLOCK OF SAN VICENTE BOULEVARD A THOROUGHFARE GRACED WITH CORAL TREES ON A BROAD MEDIAN STRIP ONE HAS ALREADY BEEN BULLDOZED WHILE HALF A DOZEN INCLUDING MINE HAVE BEEN DECLARED UNSAFE AND SUMMARILY EVACUATED I HAVE NO WAY OF KNOWING WHETHER OR WHEN MY BUILDING WILL BE REPAIRED BUT THE EXPLOSIVE VIOLENCE THAT SEIZED IT AND ME WAS GREAT ENOUGH TO MAKE ME THINK I WAS GOING TO DIE NOW THAT I HAVEN'T I FIND MYSELF GRATEFUL TO THE RICKETY PILE FOR NOT FALLING COMPLETELY DOWN AND FULL OF UNEXPECTED AFFECTION FOR THE CITY THAT I LIKE THE T. V. PEOPLE HAD RARELY TAKEN SERIOUSLY I'M GLAD THAT THE FIRESIDE MARKET ON MONTANA AVENUE WILL SOON BE IN BUSINESS AGAIN IT'S NOT JUST A THEME PARK VERSION OF AN OLD FASHIONED GROCERY STORE BUT A CHEERFUL PLACE ALBEIT AN OVERPRICED ONE WHERE CHECKOUT CLERKS KNOW THE CUSTOMERS' NAMES I'M RELIEVED THAT THE AERO THEATER PLANS TO REOPEN WITHIN A WEEK AND RESUME ITS POLICY OF DOUBLE FEATURES PLUS POPCORN WITH REAL BUTTER ONE OF THE LAST NEIGHBORHOOD MOVIE HOUSES IN THE AREA THE AERO WAS BUILT DURING WORLD WAR TWO TO GIVE AROUND THE CLOCK SHIFT WORKERS AT NEARBY DOUGLAS AIRCRAFT A PLACE TO RELAX I'M ENCOURAGED THAT THE WEDNESDAY FARMERS' MARKET WILL GO ON ONE OF THE GREAT ANOMALOUS PLEASURES OF LIVING HERE HAS BEEN BUYING FRESH PRODUCE FROM GENUINE FARMERS IN THE HEART OF THE HIP DOWNTOWN THOUGH SEISMIC INSULTS TO A NEARBY PARKING STRUCTURE HAVE FORCED THE MARKET INTO TEMPORARY QUARTERS ON THE UNFASHIONABLE OUTSKIRTS I'M PLEASED THAT THE MAIN BRANCH OF THE PUBLIC LIBRARY SURVIVED WITH MINOR DAMAGE THOUGH IT'S FRUSTRATING AND A LITTLE WEIRD THAT I CAN GET INTO THE CARD CATALOG VIA MODEM AND MY HOME COMPUTER BUT NOT INTO THE BUILDING WHICH REMAINS CLOSED FOR REPAIRS I'M ALSO AMAZED AT THE NUMBER OF GOOD STORIES THAT THE T. V. REPORTERS MISSED THE BEST ONE I KNOW INVOLVES A NEIGHBOR IN MY BUILDING ERNIE PURPURA WHO IS EIGHTY FOUR YEARS OLD AND WHO DESPITE HIS VIBRANT GOOD HEALTH AND YOUTHFUL SPIRIT HAD A HEART ATTACK WHEN THE EARTHQUAKE HIT ERNIE'S DAUGHTER AND SON IN LAW LIVED IN THE BUILDING TOO THEY RUSHED HIM TO SAINT JOHN'S WHERE EMERGENCY ROOM DOCTORS GOT HIM STABILIZED IN SHORT ORDER THE NEXT DAY A CARDIOLOGIST FOUND THAT HIS HEART ATTACK HAD DONE NO DAMAGE AND SUGGESTED THAT A BALLOON ANGIOPLASTY MIGHT BE THE NEXT STEP BUT AN ANGIOGRAM SHOWED CORONARY ARTERIES SO OCCLUDED THAT THE DOCTOR UPPED THE ANTE TO A QUADRUPLE BYPASS AN OPTION THAT HIS PATIENT EAGERLY EMBRACED THE SURGERY BEGAN AT SEVEN THIRTY THE NEXT MORNING THREE DAYS AFTER THE EARTHQUAKE AT ELEVEN O'CLOCK AS ERNIE LAY WITH HIS CHEST SPLIT ASUNDER A SECURITY GUARD WEARING A SURGICAL MASK AND GOWN CAME INTO THE OPERATING ROOM ANNOUNCED THAT THE HOSPITAL WAS BEING EVACUATED BECAUSE OF NEWLY DISCOVERED STRUCTURAL DAMAGE AND TOLD THE FOUR DOCTORS IN THE SURGICAL TEAM TO FINISH UP AS FAST AS THEY COULD THEY DID NOT FINISH UP AS FAST AS THEY COULD THEY FINISHED UP WHEN THEY FINISHED UP AT ONE THIRTY P. M. BY WHICH TIME THE HOSPITAL WAS COMPLETELY EMPTY EXCEPT FOR THEM THEIR NURSES AND THEIR PATIENT THEN THE FOUR DOCTORS LOADED ERNIE INTO AN AMBULANCE WITH A HELICOPTER STANDING BY IF TRAFFIC PROVED TOO SLOW AND RODE WITH HIM TO NEARBY U. C. L. A. MEDICAL CENTER WHERE HE WAS WHISKED INTO AN INTENSIVE CARE UNIT TWO DAYS LATER HE WAS EATING JELL O. AND THE DAY AFTER THAT HE WAS ON HIS FEET TALKING A BLUE STREAK NOW I THINK OF MY NEIGHBOR ERNIE EVERY TIME I HEAR ABOUT EARTHQUAKE RECOVERY ON THE T. V. NEWS MR. MORGENSTERN IS A JOURNALIST AND SCREENWRITER IN SANTA MONICA WALTER HAYES SIXTY NINE WILL RETIRE TUESDAY AS CHAIRMAN OF FORD'S ASTON MARTIN LAGONDA GROUP FORD ACQUIRED A MAJORITY STAKE IN ASTON MARTIN IN NINETEEN EIGHTY SEVEN MR. HAYES JOINED ASTON MARTIN'S BOARD IN NINETEEN NINETY AND BECAME CHAIRMAN A YEAR LATER FORD SAID MR. HAYES WILL CONTINUE AS A NONEXECUTIVE DIRECTOR JOHN OLDFIELD FIFTY SEVEN VICE PRESIDENT OF PRODUCT PROGRAMS VEHICLE ENGINEERING AND DESIGN FOR FORD OF EUROPE WILL SUCCEED MR. HAYES SUCCEEDING MR. OLDFIELD IS RICHARD PARRY JONES FORTY TWO CHIEF ENGINEER OF VEHICLE ENGINEERING FOR FORD OF EUROPE NOTHING'S PERFECT INVESTING IN EAST ASIA IS OFTEN A WONDERFUL WAY TO PUT CORPORATE CASH TO WORK BUT DOING SO COULD BE MADE A LOT EASIER THAT'S BECAUSE MANY PACIFIC RIM STATES SHARPLY LIMIT WHAT FOREIGNERS CAN DO ON THEIR TURF WITH STRICT RULES THAT CAN DISTORT OR EVEN PREVENT SOUND INVESTMENTS THESE PRACTICES MAY SHIELD LOCAL INTERESTS FROM UNWANTED COMPETITION BUT OVER TIME CAN HARM WHOLE ECONOMIES AS WELL AS THE OUTSIDERS CONCERNED SOMETHING IS FINALLY BEING DONE ABOUT IT THE FLEDGLING ASIA PACIFIC ECONOMIC COOPERATION GROUP HAS BEGUN DRAFTING AN INVESTMENT CODE A SET OF COMMON RULES TO BE APPLIED UNIFORMLY BY EIGHTEEN NATIONS AROUND THE PACIFIC RIM ATTRACTING INVESTORS WHO MAY NOW FEEL DISCOURAGED AND SINCE TRADE FOLLOWS INVESTMENT OVERALL COMMERCE SHOULD GROW IN THE PROCESS ABOLISHING PROTECTIVE LAWS QUOTE IS A NECESSARY EVIL QUOTE SAYS A SOUTH KOREAN DIPLOMAT WHOSE GOVERNMENT PROMISES TO REFORM ITS OWN BAD HABITS WITHOUT EXPANDING OUR TRADE THERE IS NO WAY WE CAN PROSPER THE POLITICAL IMPETUS CAME LAST NOVEMBER WHEN PRESIDENT CLINTON HOSTED APEC LEADERS ON A WET WINDY ISLAND NEAR SEATTLE THESE LEADERS THEN TOLD BUREAUCRATS TO HAVE NEW GUIDELINES READY FOR NEXT NOVEMBER WHEN THE SUMMITEERS GATHER AGAIN IN JAKARTA THEY WANT A CODE VOLUNTARY RATHER THAN MANDATORY AS A TANGIBLE ACCOMPLISHMENT BY APEC WHICH IS SOMETIMES CRITICIZED FOR HAVING MORE FORM THAN SUBSTANCE THE PROCESS HAS BEGUN THE APEC SECRETARIAT IN SINGAPORE HAS GATHERED MEMBERS' OFFICIAL INVESTMENT RULES INTO A SINGLE PUBLICATION AS A BUSINESS GUIDE THOUGH UNWRITTEN RULES CAN BE MORE IMPORTANT AND OFFICIALS FROM MEMBER STATES WILL DISCUSS THE TOPIC NEXT WEEK IN JAKARTA DURING THEIR FIRST SESSION OF NINETEEN NINETY FOUR JUST HOW FAR THEY CAN GET REMAINS UNCERTAIN FOR THE RESTRICTIONS AREN'T THERE BY ACCIDENT THEY OFTEN PROTECT SPECIAL INTERESTS OR FORCE OVERSEAS INVESTORS TO GIVE LOCALS A PIECE OF THE ACTION AS THE PRICE OF ADMISSION THE PRIVILEGED FEW CAN INCLUDE SHOE TEXTILE AND TOY MAKERS IN SOUTH KOREA BUSINESSES OWNED BY MALAYSIA'S RULING PARTY THE FORTY OR SO FAMILIES THAT HOLD MOST FILIPINO WEALTH THAI FAMILIES THAT CONTROL BANKING THERE AND THE PRESIDENT'S RELATIVES IN INDONESIA THERE'S A LOT OF LOCAL POLITICS TO DEAL WITH SAYS A U. S. BUSINESSMEN THEY'LL USE THEIR PREROGATIVES TO PROTECT THEIR INTERESTS UNTIL THEY CAN'T DO IT ANYMORE A RECENT SURVEY OF FORTY EIGHT MAJOR U. S. COMPANIES WITH EXTENSIVE ASIAN EXPERIENCE MEANT TO HELP U. S. NEGOTIATORS IN APEC MEETINGS SURFACED MANY COMPLAINTS AMONG THEM NATIONAL TREATMENT SOME COUNTRIES DISCRIMINATE AGAINST OUTSIDERS IN MALAYSIA AND THE PHILIPPINES FOREIGNERS CAN'T OWN LAND ELSEWHERE INSURANCE COMPANIES CAN'T MAKE CERTAIN LOCAL INVESTMENTS THAT ARE OPEN TO THEIR DOMESTIC RIVALS THE FORTY EIGHT COMPANIES PUT EQUAL TREATMENT FOR ALL NEAR THE TOP OF THEIR WISH LIST JOINT VENTURES HAVING A LOCAL PARTNER IS OFTEN GOOD BUSINESS BUT SOMETIMES IT'S MANDATORY INDONESIA FOR EXAMPLE DEMANDS THAT AT LEAST TWENTY PERCENT OF ANY PROJECT BE HELD LOCALLY EVEN AUSTRALIA REQUIRES COMPANIES TO INVEST LOCALLY IF THEY WANT TO SELL LOCALLY SUCH RULES CAN PREVENT BUSINESSES FROM HAVING REGIONAL STRATEGIES OR GIVE THEM PARTNERS THEY DON'T REALLY LIKE EXPORTS COMMUNICATIONS COMPANIES THAT SELL TO AUSTRALIA'S GOVERNMENT MUST MEET SPECIFIC EXPORT REQUIREMENTS TO KEEP THAT BUSINESS MALAYSIA WON'T LET A FOREIGNER OWN ONE HUNDRED PERCENT OF A LOCAL SUBSIDIARY UNLESS IT MEETS EXPORT OR OTHER GOALS FOREIGNERS SAY THIS CAN LEAD TO INEFFICIENCY SCREENING COMPANIES CALL THE PROCESS OF GETTING OFFICIAL APPROVALS LONG COMPLEX AND COSTLY THEY OFTEN FIND IT CORRUPT AS WELL NOTABLY IN SOUTH KOREA MALAYSIA AND INDONESIA AND IN JAPAN AND KOREA THEY SUSPECT IT'S DESIGNED TO EXTRACT BUSINESS AND TECHNICAL SECRETS THEY'D WELCOME A CODE WITH SIMPLER MORE TRANSPARENT PROCEDURES SUCH BARRIERS HAVE CAUSED COMPANIES TO VETO INVESTMENTS IN CHINA KOREA AND INDONESIA AMONG OTHERS THOUGH MULTINATIONALS OFTEN FIND WAYS AROUND RESTRICTIONS THOSE WITH LESS OVERSEAS EXPERIENCE CAN BE FRIGHTENED AWAY HALTING PROJECTS THAT COULD BENEFIT BOTH SIDES EXECUTIVES SAY THRIVING PACIFIC ECONOMIES NO LONGER NEED THESE ANTIQUATED PROTECTIONS A STANDARDIZED CODE SHOULD INCREASE INVESTMENT SPUR GROWTH AND SET AN EXAMPLE FOR OTHER REGIONS BUT GIVEN THE POLITICS INVOLVED MANY DON'T EXPECT TO SEE ONE BY NOVEMBER LARRY E. TEMPLE FIFTY EIGHT YEARS OLD WAS NAMED TO THE BOARD OF THIS DESIGN AND CONSTRUCTION FIRM INCREASING THE NUMBER OF MEMBERS TO EIGHT MR. TEMPLE AN ATTORNEY HAS A PRIVATE PRACTICE IN AUSTIN TEXAS JAPANESE NONFERROUS METALS CONCERN MITSUI MINING AND SMELTING COMPANY LOWERED ITS FORECASTS FOR BOTH CONSOLIDATED AND UNCONSOLIDATED EARNINGS AND CANCELED ITS PLANS FOR PAYING DIVIDENDS IN THE FISCAL YEAR ENDING MARCH THIRTY FIRST THE COMPANY ALSO OUTLINED NEW RESTRUCTURING MEASURES INCLUDING PULLING OUT OF THE LEAD REFINING BUSINESS CUTTING SALARIES AND SLIMMING ITS WORK FORCE ELEVEN PERCENT THROUGH AN EARLY RETIREMENT PROGRAM ON A CONSOLIDATED BASIS MITSUI MINING AND SMELTING SAID IT NOW EXPECTS ITS PRETAX LOSS TO WIDEN TO FOUR POINT SIX OH BILLION YEN FORTY ONE POINT EIGHT MILLION DOLLARS FROM TWO POINT FOUR SIX BILLION YEN A YEAR EARLIER AT THE START OF THE FISCAL YEAR THE COMPANY HAD FORECAST A RETURN TO CONSOLIDATED PROFITABILITY MITSUI MINING AND SMELTING SAID ITS RESTRUCTURING PLAN WILL BRING ABOUT A RETURN TO PROFITABILITY AND EVENTUALLY WILL INCREASE PROFITS EVEN IN TIMES OF SLOW GROWTH THE COMPANY SAID IT FORESEES CONTINUED ECONOMIC WEAKNESS IN THE COMING FISCAL YEAR WEIGHING ON REVENUE THE COMPANY SAID IT WILL STOP SMELTING LEAD AT ITS KAMIOKA PLANT AND SHIFT ACTIVITIES THERE TO RECYCLING SPENT BATTERY MATERIALS MITSUI MINING AND SMELTING SAID IT WILL CONSIGN SOME SMELTING ACTIVITIES TO OTHER COMPANIES MITSUI MINING AND SMELTING ALSO SAID IT WILL STOP OPERATIONS OF ITS MIIKE RARE METALS AND RARE EARTH FACILITIES AND INSTEAD BEGIN IMPORTING THE MATERIALS THE COMPANY SAID IT WOULD ALSO STRENGTHEN ITS ELECTRONIC MATERIALS OPERATIONS INCREASING OUTPUT TO MEET THE GROWING DEMAND FOR MATERIALS USED IN LIQUID CRYSTAL DISPLAYS AND SHIFTING PRODUCTION OVERSEAS AS ITS CUSTOMERS DO SO AS WELL THE COMPANY ALSO SAID IT WOULD REDUCE STAFFING OF ITS PARENT COMPANY AND FIVE SUBSIDIARIES BY FIVE HUNDRED WORKERS OR ELEVEN PERCENT TO FOUR THOUSAND THREE HUNDRED SIXTY WORKERS THROUGH AN EARLY RETIREMENT PROGRAM IT SAID THE REDUCTION WOULD BE COMPLETED BY THE END OF JUNE NINETEEN NINETY SIX THE COMPANY SAID IT ALSO PLANS TO CUT WAGES OVER THE NEXT TWO YEARS BUT DIDN'T PROVIDE DETAILS A SUDDEN DOLLAR FREE FALL IN NEW YORK SHOOK SLUGGISH CURRENCY MARKETS AWAKE AND THE MOSTLY TECHNICAL COLLAPSE RAISED QUESTIONS ABOUT WHETHER THE DOLLAR'S SHORT TERM BULL RUN IS OVER LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN TWO NINE FIVE MARKS DOWN FROM ONE POINT SEVEN FOUR FIVE OH MARKS LATE WEDNESDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED EIGHT POINT FIVE FIVE YEN DOWN FROM ONE HUNDRED TEN POINT OH FIVE YEN STERLING WAS TRADING AT ONE POINT FIVE OH NINE OH DOLLARS UP FROM ONE POINT FOUR NINE FOUR FIVE DOLLARS ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED EIGHT POINT EIGHT FIVE YEN AND AT ONE POINT SEVEN TWO NINE ONE MARKS CURRENCY MARKETS HAVE BEEN SLOW ALL WEEK WITH VOLATILITY LIMITED AND VOLUME LOW AMID THE TORPOR HOWEVER THERE HAS BEEN QUIET PRESSURE ON THE DOLLAR GERMAN INTEREST RATES REMAIN WELL ABOVE THOSE IN THE U. S. AND DURING THE WEEK SEVERAL SENIOR OFFICIALS OF THE BUNDESBANK GERMANY'S CENTRAL BANK HAVE SUGGESTED THAT THEY WON'T BE LOWERED ANYTIME SOON THAT HAMPERED THE DOLLAR AS IT BOUNCED REPEATEDLY AGAINST THE TOP OF ITS RECENT RANGE AGAINST THE MARK U. S. JAPAN TRADE TALKS MEANWHILE REMAIN AT AN IMPASSE AND MANY TRADERS FEAR THAT IF THERE ISN'T ANY PROGRESS SOON THE U. S. AGAIN WILL CALL PUBLICLY FOR A STRONGER YEN AS A MEANS TO REDUCE ITS TRADE DEFICIT AND WEAKNESS IN THE JAPANESE GOVERNMENT CAPPED BY PRIME MINISTER MORIHIRO HOSOKAWA'S DECLARATION THURSDAY THAT HE WILL QUIT IF A POLITICAL REFORM LAW ISN'T PASSED HAS HAD MARKETS WONDERING WHETHER THE U. S. WILL FACE A PARTNER UNABLE TO STRIKE A DEAL ON THURSDAY THOSE PRESSURES ON THE DOLLAR EXPLODED LATE IN A MOSTLY UNEVENTFUL DAY A CHAIN REACTION TRIGGERED BY COMMENTS MADE BY GERMAN CHANCELLOR HELMUT KOHL SENT THE U. S. CURRENCY PLUNGING THROUGH ONE SUPPORT LEVEL AFTER ANOTHER IN A SPEECH TO THE WORLD ECONOMIC FORUM IN DAVOS SWITZERLAND MR. KOHL SAID GERMANY'S ECONOMIC PROBLEMS WERE STRUCTURAL AND NOT THE RESULT OF A NORMAL BUSINESS CYCLE SOME TRADERS TOOK THAT AS A SUGGESTION THAT MR. KOHL WAS DISAVOWING RATE CUTS AS A WAY TO REVIVE GERMAN GROWTH QUOTE PEOPLE HAVE ALREADY BEEN GETTING A SENSE FOR SEVERAL DAYS FROM THE BUNDESBANK COMMENTS THAT RATE CUTS ARE A WAY OFF QUOTE SAID CHRISTOPHER BOURDAIN A CORPORATE TRADER AT CREDIT SUISSE IN NEW YORK BUT IT DEFINITELY HELPED THAT KOHL WAS REPEATING WHAT WE'VE BEEN HEARING THE COMMENTS SENT THE DOLLAR PLUNGING SETTING OFF STOP LOSS ORDERS AT ONE POINT SEVEN FOUR THREE OH MARKS AND SET THE STAGE FOR MORE DOLLAR VULNERABLITY LESS THAN TWO HOURS LATER AS EUROPEAN PLAYERS WENT HOME AND MARKETS THINNED TRADERS BEGAN TO ATTACK THE DOLLAR'S VALUE AGAINST THE YEN A FEW LARGE ORDERS RUMORED TO COME FROM OPTIONS MARKET PLAYERS SEEKING PROFIT ON DOLLAR PUTS WERE SUFFICIENT TO PUSH THE DOLLAR THROUGH THE ONE HUNDRED NINE YEN LEVEL TRADERS SAID THAT SET OFF MANIC SELLING BY BANKS AND FUNDS THEY ADDED THE DOLLAR'S WEAKNESS AGAINST THE YEN TRANSLATED BACK INTO SELLING FOR MARKS AND WHEN THE U. S. CURRENCY BROKE BELOW A CLOSELY WATCHED LEVEL AT ONE POINT SEVEN THREE FIVE OH MARKS IT FELL EVEN FASTER TRADERS SAID THAT PLAYERS WHO HAD BEEN BUYING THE DOLLAR ON DIPS IN RECENT DAYS IN ANTICIPATION OF A RALLY WERE ABANDONING THOSE POSITIONS THUS ACCELERATING THE DOLLAR'S DECLINE THE PLUNGE IRONICALLY CAME ON A DAY THAT SAW THE RELEASE OF YET MORE POSITIVE U. S. ECONOMIC DATA DECEMBER DURABLE GOODS ORDERS WERE UP TWO POINT TWO PERCENT COMPARED WITH EXPECTATIONS OF A ONE POINT TWO PERCENT RISE FOR ALL OF NINETEEN NINETY THREE THEY WERE UP EIGHT POINT SIX PERCENT THE LARGEST RISE IN FIVE YEARS MEANWHILE THE U. S. TRADE IMBALANCE WITH JAPAN AND THE RESULTING NEGOTIATIONS ON OPENING JAPANESE MARKETS CONTINUE TO BE A MAJOR QUESTION U. S. TREASURY SECRETARY LLOYD BENTSEN SPOKE TWICE DURING THURSDAY'S TRADING ON THE NEED FOR OPEN MARKETS AND HE ADDRESSED THE ISSUE ALMOST EVERY DAY THIS WEEK GENERAL ELECTRIC COMPANY'S STRUGGLING EUROPEAN LIGHTING DIVISION SWUNG TO PROFITABILITY IN NINETEEN NINETY THREE G. E. CHAIRMAN JOHN WELCH SAID MR. WELCH ON A TWO DAY VISIT TO HUNGARY THIS WEEK WOULDN'T DISCLOSE EXACT FIGURES FOR THE DIVISION BUT SAID G. E. LIGHTING EUROPE WILL REPORT PRETAX EARNINGS IN A MIDRANGE SOMEWHERE QUOTE BETWEEN ZERO AND TWENTY FIVE MILLION DOLLARS QUOTE THE IMPROVED EARNINGS PICTURE PUTS THE U. S. COMPANY'S EUROPEAN LIGHTING DIVISION ON A STRONGER FOOTING WITH EUROPEAN MARKET LEADERS OSRAM A UNIT OF SIEMENS A. G. OF GERMANY AND PHILIPS ELECTRONICS N. V. OF THE NETHERLANDS SAID CHARLES PIEPER CHIEF EXECUTIVE OFFICER AND PRESIDENT OF G. E. LIGHTING EUROPE THE LATEST NEWS REFLECTS A MAJOR TURNAROUND FOR THE G. E. UNIT RESULTING IN LARGE PART FROM INTEGRATING OPERATIONS AND MOVING MUCH OF ITS EUROPEAN LIGHT BULB PRODUCTION TO HUNGARY GENERAL ELECTRIC COMPANY OF THE U. S. IS NOT RELATED TO THE BRITISH COMPANY OF THE SAME NAME G. E. HAS BEEN A TRAILBLAZER IN EASTERN EUROPE FORMING THE FIRST SIZABLE WESTERN JOINT VENTURE IN THE REGION IN NINETEEN NINETY WITH THE HUNGARIAN LIGHT BULB GROUP TUNGSRAM G. E. PAID ONE HUNDRED FIFTY MILLION DOLLARS FOR AN INITIAL FIFTY PERCENT STAKE IN TUNGSRAM GRADUALLY BOOSTING ITS SHARE TO NINETY NINE PERCENT TUNGSRAM NOW MAKES UP A KEY PART OF G. E. LIGHTING EUROPE RESTRUCTURING TUNGSRAM OVER THE LAST FOUR YEARS HOWEVER COST G. E. MUCH MORE THAN EXPECTED G. E. SAID IT HAD INITIALLY PLANNED TO INVEST TWO HUNDRED MILLION DOLLARS IN TUNGSRAM BUT TO DATE HAS INJECTED FIVE HUNDRED FIFTY MILLION DOLLARS ON TUESDAY IT ANNOUNCED PLANS TO INCREASE ITS INVESTMENT EVEN MORE IN TALKS WITH HUNGARIAN GOVERNMENT OFFICIALS INCLUDING HUNGARY'S NEW PRIME MINISTER PETER BOROSS MR. WELCH SAID HE IS COMMITTED TO POURING THIRTY MILLION DOLLARS TO FIFTY MILLION DOLLARS A YEAR INTO THE HUNGARIAN ECONOMY THROUGH INVESTMENTS IN TUNGSRAM TUNGSRAM EXPORTS NINETY PERCENT OF ITS PRODUCTS REPRESENTING THREE PERCENT OF THE COUNTRY'S TOTAL EXPORTS TUNGSRAM IS NOW WELL POSITIONED TO BE A MAJOR FACTOR IN ALL OF EUROPE SAID MR. WELCH G. E. OFFICIALS SAID TUNGSRAM WILL SHOW A NET LOSS FOR NINETEEN NINETY THREE BUT IS EXPECTED TO SWING TO A PROFIT THIS YEAR IN NINETEEN NINETY TWO TUNGSRAM REPORTED A STAGGERING LOSS OF NINE BILLION FORINTS EIGHTY EIGHT POINT THREE MILLION DOLLARS AT CURRENT EXCHANGE RATES TUNGSRAM HAS RECORDED LOSSES SINCE THE MID NINETEEN EIGHTIES A RESULT OF THE DISINTEGRATION OF THE COMECON MARKET MOST OF G. E.'S INVESTMENT IN TUNGSRAM HAS GONE INTO NEW PRODUCT DEVELOPMENT HUNGARY IS HOME TO FOUR OF THE COMPANY'S NINE ADVANCED RESEARCH AND DEVELOPMENT CENTERS INCLUDING A RESEARCH AND MANUFACTURING FACILITY FOR ENERGY SAVING COMPACT FLUORESCENT BULBS IN ADDITION G. E. LIGHTING EUROPE IS IN THE PROCESS OF CLOSING THREE OF ITS WESTERN EUROPE MANUFACTURING FACILITIES A ONE HUNDRED YEAR OLD FACTORY IN VIENNA AND TWO PLANTS IN THE UNITED KINGDOM AND MOVING THAT PRODUCTION TO HUNGARY ABOUT EIGHT THOUSAND FIVE HUNDRED PEOPLE OR ALMOST HALF OF TUNGSRAM'S LABOR FORCE HAVE BEEN LAID OFF SINCE G. E. ACQUIRED ITS INITIAL STAKE G. E. REACHED AGREEMENTS WITH TUNGSRAM'S UNION THIS WEEK PROMISING A WAGE INCREASE IN LINE WITH INFLATION EARLIER G. E. INDICATED THAT IT MAY BE HIRING BACK SOME OF THE HUNGARIAN WORKERS LAID OFF IN ADDITION TO INVESTING IN HUNGARY'S LIGHTING SECTOR THE G. E. CHAIRMAN SAID THE COMPANY EXPECTS TO PARTICIPATE IN THE PRIVATIZATION OF HUNGARY'S POWER PLANTS CANADIAN PRIMARY STEEL PRODUCTION TOTALED TWO HUNDRED THIRTY TWO THOUSAND FIVE HUNDRED ONE METRIC TONS IN THE WEEK ENDED SATURDAY A TEN PERCENT DECLINE FROM TWO HUNDRED FIFTY EIGHT THOUSAND FIVE HUNDRED FIFTY EIGHT TONS IN THE PREVIOUS WEEK AND A SEVENTEEN PERCENT DECLINE FROM TWO HUNDRED SEVENTY EIGHT THOUSAND SEVEN HUNDRED THIRTY EIGHT TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO TWO THOUSAND TWO HUNDRED FOUR POINT SIX POUNDS RANK ORGANISATION P. L. C. A BRITISH LEISURE CONCERN NAMED SIR DENYS HENDERSON ITS FUTURE CHAIRMAN SIR DENYS SIXTY ONE YEARS OLD IS CURRENTLY CHAIRMAN OF IMPERIAL CHEMICAL INDUSTRIES P. L. C. AND ZENECA GROUP P. L. C. BUT PLANS TO RETIRE FROM THOSE POSTS IN NINETEEN NINETY FIVE HE WILL BECOME A NON EXECUTIVE DIRECTOR AT RANK ON MARCH FIRST AND TAKE OVER THE CHAIRMANSHIP OF THE COMPANY NEXT YEAR THE RANK POSITION WILL BE A BIG CHANGE FOR SIR DENYS WHO HAS WORKED SINCE NINETEEN FIFTY SEVEN FOR I. C. I. A SPRAWLING CHEMICALS COMPANY WITH ANNUAL SALES OF EIGHTEEN BILLION DOLLARS AT I. C. I. HE HAS OVERSEEN THE SPINOFF LAST YEAR OF ZENECA WHICH PRODUCES DRUGS PESTICIDES AND INDUSTRIAL CHEMICALS AND THE SUBSEQUENT STREAMLINING OF BOTH COMPANIES RANK'S ACTIVITIES ARE A WORLD APART FROM THOSE AT I. C. I. AND ZENECA AT RANK SIR DENYS WILL TAKE THE HELM OF A COMPANY WITH SUCH ACTIVITIES AS FILM VIDEOS HOTELS THEME PARKS AND NIGHTCLUBS IT ALSO CONTROLS FORTY NINE PERCENT OF THE PHOTOCOPIER CONCERN RANK XEROX SIR DENYS WILL REPLACE CURRENT RANK CHAIRMAN SIR LESLIE FLETCHER WHO AT AGE SEVENTY ONE HAS BEEN PLANNING TO RETIRE FOR MORE THAN A YEAR U. S. PHYSICAL THERAPY INCORPORATED IS OPENING TWO OUTPATIENT CLINICS DURING FEBRUARY ONE IN NEW JERSEY AND ONE IN OKLAHOMA THE NEW CLINICS ARE PART OF A PLAN TO OPEN EIGHT TO TEN CLINICS DURING THE FIRST THREE MONTHS OF THIS YEAR THE COMPANY SAID JANE MARGARET O'BRIEN FORTY YEARS OLD WAS NAMED A DIRECTOR OF THIS TRANSPORTATION CONCERN FILLING A VACANCY ON THE TWELVE MEMBER BOARD MS. O'BRIEN IS PRESIDENT OF HOLLINS COLLEGE IN ROANOKE VIRGINIA IN HIS BATTLE TO OVERHAUL THIS NATION'S DEMOCRACY PRIME MINISTER MORIHIRO HOSOKAWA IS TURNING TO AN UNUSUAL ALLY FOR A JAPANESE POLITICIAN THE PEOPLE MR. HOSOKAWA AND MANY OF HIS CABINET MEMBERS EMERGED THURSDAY FROM THE BACKROOMS WHERE DEALS HAVE LONG BEEN CUT TO MAKE A SERIES OF PUBLIC APPEALS THEIR SPEECHES AMOUNTED TO A CALL TO THE JAPANESE ELECTORATE TO LOBBY BALKING LEGISLATORS TO REVIVE THE TROUBLED POLITICAL REFORM BILLS BEFORE SATURDAY'S DEADLINE QUOTE CALL YOUR LOCAL DIET MEMBERS FAX THEM IF YOU TOO THINK THAT WE MUST CHANGE JAPAN'S POLITICAL ORDER YOU MUST EXPRESS YOUR FEELINGS THROUGH ACTIONS MR. HOSOKAWA PLEADED AT A POLITICAL REFORM PEP RALLY AT A DOWNTOWN HOTEL THE HIGHLY POPULAR MR. HOSOKAWA HINTED THAT HE WOULD STEP DOWN IF THE REFORM BILLS FAILED A MOVE THAT COULD UNLEASH POLITICAL CHAOS THAT THREAT SEEMED AIMED AT BOOSTING THE PRESSURE ON THE OPPOSITION LIBERAL DEMOCRATIC PARTY TO COMPROMISE OVER REFORM INDEED THE HOSOKAWA COALITION'S BASIC STRATEGY IS TO FAN FEARS WITHIN THE OPPOSITION THAT MANY L. D. P. MEMBERS MIGHT LOSE THEIR SEATS IN A SNAP GENERAL ELECTION IF REFORM FAILS THIS ISN'T NECESSARILY A GENUINE REFORM MOVEMENT GROUSED KOICHI KATO A SENIOR L. D. P. PARLIAMENT MEMBER THE OTHER DAY THIS IS A POWER STRUGGLE DESPITE HIS POPULAR APPEAL MR. HOSOKAWA FACES LONG ODDS IN HIS FIGHT THE POLITICAL REFORM BILLS WHICH ARE DESIGNED TO CURB CORRUPTION AND REWRITE THE NATION'S ELECTORAL SYSTEM PASSED THE LOWER HOUSE OF PARLIAMENT IN NOVEMBER BUT FAILED IN THE UPPER HOUSE LAST WEEK MR. HOSOKAWA HAS PLEDGED TO ENACT THE LEGISLATION DURING THE CURRENT PARLIAMENTARY SESSION WHICH ENDS SATURDAY SO FAR THIS WEEK MR. HOSOKAWA'S PLAN TO REVIVE REFORM HAS BEEN TO TRY TO BROKER A COMPROMISE BETWEEN THE RULING AND OPPOSITION PARTIES LATE THURSDAY NIGHT COMMITTEE LEVEL TALKS AIMED AT SUCH A DEAL BROKE DOWN ON FRIDAY MORNING MR. HOSOKAWA WAS REPORTEDLY STEPPING UP THE PRESSURE FOR A SUMMIT WITH L. D. P. LEADER YOHEI KONO IF THAT FAILS THE COALITION CAN SUBMIT THE BILLS FOR ANOTHER VOTE IN THE LOWER HOUSE A SHOWDOWN THAT COULD COME AS SOON AS FRIDAY THE COALITION WOULD THEN NEED A TWO THIRDS MAJORITY TO MAKE THE BILLS LAW SUCCESS WOULD REQUIRE ACCORDING TO SOME ESTIMATES THE DEFECTION OF AS MANY AS SEVENTY L. D. P. MEMBERS A HIGHLY UNLIKELY PROSPECT MOST POLITICAL EXPERTS SAY STILL EVEN IF THE CURRENT REFORM PACKAGE IS DEFEATED IT ISN'T CERTAIN DESPITE THE THREATS THAT MR. HOSOKAWA WOULD LEAVE OFFICE IMMEDIATELY INDEED SOME ANALYSTS BELIEVE THAT EVEN IF REFORM FAILS MR. HOSOKAWA MIGHT TRY TO BROKER ANOTHER COMPROMISE THAT WOULD KEEP HIS GOVERNMENT IN POWER TO DEAL WITH SUCH OTHER PRESSING ISSUES AS TAX REDUCTION AND ECONOMIC STIMULUS WHEN THE NEW PARLIAMENTARY SESSION OPENS NEXT WEEK MANY POLITICIANS SAY THAT EVEN IF MR. HOSOKAWA CAN'T PASS THE REFORM BILLS THIS WEEK HE CAN ACCOMPLISH THE NEXT BEST THING FURTHER BATTERING THE L. D. P. IT WAS THE DEFECTION OF SEVERAL DOZEN PRO REFORM MEMBERS THAT ENDED THE L. D. P.'S FOUR DECADE REIGN LAST YEAR A NUMBER OF PRO REFORM L. D. P. MEMBERS HAVE QUIT THE PARTY SINCE AND STILL MORE ARE CONSIDERED RIPE FOR COALITION RECRUITING AS MANY AS THIRTY L. D. P. MEMBERS WILL VOTE FOR THE BILLS EVEN IF PARTY LEADERS FORBID IT SAID PRO REFORM L. D. P. LEGISLATOR SENPACHI OHISHI THERE IS A STRONG POSSIBILITY I WILL JOIN THE GROUP IF SATURDAY ARRIVES AND NO SORT OF REFORM PACKAGE PASSES MR. HOSOKAWA COULD STEP DOWN OR CALL SNAP ELECTIONS BUT THE TIMING WOULD BE HORRIBLE JAPAN'S ECONOMY IS STUCK IN RECESSION AND NEW ECONOMIC MEASURES ARE ON HOLD BECAUSE OF THE REFORM TUSSLE MR. HOSOKAWA IS SCHEDULED TO MEET WITH PRESIDENT CLINTON IN WASHINGTON FEBRUARY ELEVENTH TO REACH A TRADE AGREEMENT AND A FAILED SUMMIT COULD ESCALATE BILATERAL TENSIONS REFORM OPPONENTS FEAR THEY WOULD GET BLAMED IN ANY IMMINENT ELECTION FOR SUCH TROUBLES THUS EVEN MANY OF MR. HOSOKAWA'S DETRACTORS ARE SUGGESTING EVEN BEGGING THAT HE STAY IN OFFICE FOR AWHILE AT LEAST UNTIL THE BUDGET FOR THE NEXT FISCAL YEAR IS PASSED QUOTE HE'S ALREADY A LAME DUCK QUOTE SAID TARO NAKAYAMA ONE OF THE L. D. P.'S STRONG OPPONENTS OF THE BILLS BUT HE CAN STAY THURSDAY'S APPEAL BROADCAST ON TELEVISION NEWSCASTS WAS ONLY THE LATEST EXAMPLE OF MR. HOSOKAWA'S ATTEMPTS TO CHANGE THE RULES OF JAPAN'S STODGY DEMOCRACY IN THE FINAL YEARS OF THE L. D. P. REIGN POPULAR APPEAL SEEMED ALMOST IRRELEVANT THE MOST IMPORTANT VOTER WAS A POWER BROKER SHIN KANEMARU WHO VIRTUALLY SINGLE HANDEDLY NAMED AND DISMISSED PRIME MINISTERS SINCE TAKING OFFICE IN AUGUST MR. HOSOKAWA HAS DISPLAYED UNUSUAL PUBLIC RELATIONS SAVVY AND HIS POPULARITY AT ONE POINT SOARED PAST SEVENTY PERCENT THE HIGHEST ENJOYED BY A POSTWAR JAPANESE LEADER HE USED THE POWER OF THAT POPULARITY TO MAKE THE DIFFICULT DECISION TO END JAPAN'S BAN ON RICE IMPORTS IN DECEMBER SHORTLY AFTER MR. HOSOKAWA'S SPEECH THE LEADERS FROM THE TOP PARTIES IN THE COALITION HELD A SEPARATE RUSH HOUR RALLY ATOP A SOUND TRUCK OUTSIDE SHINJUKU STATION A BUSTLING COMMUTER HUB I'VE NEVER BEEN TO SOMETHING LIKE THIS SAID JUNICHI YAMAZAKI A FORTY ONE YEAR OLD TAX ACCOUNTANT WHO STOPPED TO LISTEN IN THE WINTER CHILL BUT DESPITE HIS SUPPORT FOR THE REFORM BILLS MR. YAMAZAKI REMAINED SKEPTICAL THAT THE NEW APPROACH WOULD HELP I DON'T THINK IT'S VERY EFFECTIVE HE SAID POINTING TO THE THIN CROWD AS MOST COMMUTERS RUSHED BY WE DON'T HAVE A CUSTOM OF HAVING DISCUSSIONS WITH POLITICIANS PRUDENTIAL SECURITIES INCORPORATED SET ASIDE MORE THAN FOUR HUNDRED THIRTY MILLION DOLLARS IN RESERVES IN NINETEEN NINETY THREE FOR LIMITED PARTNERSHIP LEGAL CLAIMS FOUR TIMES WHAT THE BROKERAGE FIRM PREDICTED A YEAR AGO DESPITE THE RESERVES THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT MANAGED TO POST NINETEEN NINETY THREE NET INCOME OF ONE HUNDRED FORTY FIVE MILLION DOLLARS AMID THE BOOM IN TRADING AND UNDERWRITING ON WALL STREET DOWN JUST THREE PERCENT FROM NINETEEN NINETY TWO FOR WALL STREET NINETEEN NINETY THREE WAS SUCH QUOTE AN EXCEPTIONALLY GOOD YEAR THAT IT'S GIVEN MANY FIRMS THE OPPORTUNITY TO BE VERY CONSERVATIVE IN PUTTING ASIDE FOR RAINY DAYS WHETHER THOSE RAINY DAYS WERE IN THE PAST OR IN THE FUTURE QUOTE SAID MICHAEL FLANAGAN AN ANALYST AT LIPPER ANALYTICAL SECURITIES CORPORATION SEPARATELY SALOMON INCORPORATED SAID NINETEEN NINETY THREE NET ZOOMED FIFTY PERCENT TO EIGHT HUNDRED TWENTY SEVEN MILLION DOLLARS OR SEVEN DOLLARS AND ONE CENT A SHARE FROM FIVE HUNDRED FIFTY MILLION DOLLARS OR FOUR DOLLARS AND EIGHTEEN CENTS A SHARE THE RESULTS WERE BUOYED BY A THREEFOLD JUMP IN FOURTH QUARTER NET ON STRONG GAINS IN INVESTMENT BANKING AND PROPRIETARY TRADING THE RESULTS UNEXPECTED BY WALL STREET ANALYSTS PROMPTED A FIVE PERCENT JUMP IN THE SHARES OF SALOMON PARENT OF NEW YORK BROKERAGE FIRM SALOMON BROTHERS INCORPORATED PRUDENTIAL'S RESERVES BRING TO NEARLY NINE HUNDRED MILLION DOLLARS THE TOTAL LEGAL TAB FOR PRUDENTIAL'S SOURED PARTNERSHIPS DURING THE PAST FEW YEARS TO DEAL WITH LAWSUITS BY DISGRUNTLED INVESTORS THE NATION'S FOURTH LARGEST BROKERAGE FIRM ALREADY HAS PAID OUT A TOTAL OF TWO HUNDRED SEVENTY MILLION DOLLARS IN PARTNERSHIP CLAIMS PRUDENTIAL'S NINETEEN NINETY THREE RESERVES ARE THE HIGHEST EVER SET ASIDE IN A YEAR BY A WALL STREET BROKERAGE FIRM FOR LEGAL CLAIMS INVOLVING SMALL INVESTORS ANALYSTS SAY THE BULGING RESERVES GIVE THE COMPANY A CUSHION TO DOLE OUT PAYMENTS FROM A THREE HUNDRED THIRTY MILLION DOLLAR REPARATIONS FUND FOR INVESTORS SET UP AS PART OF AN OCTOBER SETTLEMENT WITH FEDERAL AND STATE REGULATORS THE SECURITIES AND EXCHANGE COMMISSION ALONG WITH THE FIFTY STATES HAS ACCUSED PRUDENTIAL OF WIDESPREAD FRAUD IN SELLING EIGHT BILLION DOLLARS OF PARTNERSHIPS IN THE NINETEEN EIGHTIES THE NINETEEN NINETY THREE RESERVES ARE ADEQUATE TO FUND FULLY THE THREE HUNDRED THIRTY MILLION DOLLARS REPARATIONS FUND PRUDENTIAL SAID BUT THE REPARATIONS FUND IS OPEN ENDED DEPENDING ON CLAIMS BROUGHT BY INVESTORS AND SOME ANALYSTS EXPECT THE FINAL TALLY TO BE FAR HIGHER BEFORE TAXES AND RESERVES PRUDENTIAL HAD NINETEEN NINETY THREE PROFIT OF A RECORD FIVE HUNDRED SIXTY THREE MILLION DOLLARS FORTY EIGHT PERCENT HIGHER THAN IN NINETEEN NINETY TWO IN THE FOURTH QUARTER PRETAX PROFIT WAS ONE HUNDRED FIFTY FOUR MILLION DOLLARS MORE THAN DOUBLE THE RESULTS OF A YEAR EARLIER PRUDENTIAL'S RETURN ON EQUITY WAS SEVENTEEN PERCENT IN NINETEEN NINETY THREE ITS EQUITY CAPITAL IS EIGHT HUNDRED FIFTY MILLION DOLLARS REVENUE ROSE THIRTEEN PERCENT IN NINETEEN NINETY THREE TO THREE POINT FOUR BILLION DOLLARS ASSETS UNDER MANAGEMENT SURGED TO A RECORD ONE HUNDRED FIFTY ONE BILLION DOLLARS UP ELEVEN PERCENT EXCESS REGULATORY CAPITAL STOOD AT SIX HUNDRED SIX MILLION DOLLARS AT YEAR END AND DESPITE A DRUMBEAT OF NEGATIVE PUBLICITY PRUDENTIAL SAID IT OPENED MORE THAN TWENTY THOUSAND NEW BROKERAGE ACCOUNTS EACH MONTH IN NINETEEN NINETY THREE AND HIRED MORE THAN TWO HUNDRED THIRTY BROKERS SALOMON'S FOURTH QUARTER NET WAS FOUR HUNDRED SEVENTY SIX MILLION DOLLARS OR FOUR DOLLARS AND THIRTY THREE CENTS A SHARE UP FROM ONE HUNDRED FORTY THREE MILLION DOLLARS OR ONE DOLLAR AND TEN CENTS A SHARE A YEAR EARLIER PER SHARE EARNINGS WERE MORE THAN DOUBLE ANALYSTS' EXPECTATIONS ITS SHARES CLOSED YESTERDAY AT FORTY EIGHT DOLLARS AND TWENTY FIVE CENTS UP TWO DOLLARS AND TWENTY FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SALOMON'S NINETEEN NINETY THREE EARNINGS HOWEVER WERE DRAGGED DOWN BY TRADING BETS THAT BACKFIRED IN THE FIRM'S THIRD QUARTER THE FIFTY PERCENT JUMP IN NINETEEN NINETY THREE NET WAS MORE IN LINE WITH THE STRONG ANNUAL RESULTS REPORTED BY MANY SECURITIES BROKERS FOR THE FOURTH QUARTER SALOMON POSTED FIVE HUNDRED EIGHT MILLION DOLLARS IN PRETAX PROFIT FROM ITS PROPRIETARY TRADING OPERATION BUT THAT OPERATION HAD A ONE HUNDRED SEVENTY THREE MILLION DOLLAR LOSS IN THE THIRD QUARTER OFFSETTING THE STRONG PERFORMANCES BY ITS BROKERAGE AND INVESTMENT BANKING LINES IN THE YEAR EARLIER QUARTER PROPRIETARY TRADING ACCOUNTED FOR FOUR HUNDRED EIGHTY TWO MILLION DOLLARS OF PRETAX PROFIT REVENUE FROM INVESTMENT BANKING IN THE QUARTER AMID A RAGING WALL STREET UNDERWRITING BOOM MORE THAN DOUBLED TO TWO HUNDRED FIFTY MILLION DOLLARS FROM ONE HUNDRED FOUR MILLION DOLLARS IN THE YEAREARLIER QUARTER COMMISSIONS ROSE TO SEVENTY NINE MILLION DOLLARS FROM THE PRIOR YEAR'S FIFTY ONE MILLION DOLLARS IN THE FOURTH QUARTER SALOMON'S TOTAL FOURTH QUARTER REVENUE ROSE TO TWO POINT SEVEN SIX BILLION DOLLARS FROM TWO POINT ONE FOUR BILLION DOLLARS ITS REVENUE ALSO ROSE SHARPLY QUARTER TO QUARTER THIRD QUARTER REVENUE WAS ONE POINT EIGHT SIX BILLION DOLLARS TOTAL REVENUE FOR NINETEEN NINETY THREE WAS EIGHT POINT EIGHT BILLION DOLLARS AN EIGHT PERCENT GAIN FROM THE PRIOR YEAR'S EIGHT POINT ONE EIGHT BILLION DOLLARS VIETNAM'S ALLURE AS ASIA'S LATEST TOURISM AND BUSINESS FRONTIER IS DRAWING EVER LARGER NUMBERS OF VISITORS TO THE COUNTRY ACCORDING TO PRELIMINARY FIGURES RELEASED BY THE GENERAL DEPARTMENT OF TOURISM THE NUMBER OF FOREIGN VISITORS LAST YEAR ROCKETED FIFTY PERCENT FROM A YEAR EARLIER TO SIX HUNDRED SIXTY NINE THOUSAND EIGHT HUNDRED SIXTY BETWEEN SEVENTY PERCENT AND EIGHTY PERCENT OF THE TOTAL WERE TOURISTS WHILE THE TOTAL IS DWARFED BY THE FIVE POINT SEVEN MILLION VISITORS TO THAILAND AND EVEN THE ONE POINT FOUR MILLION VISITORS TO THE PHILIPPINES LAST YEAR THE NUMBER OF FOREIGN VISITORS TO VIETNAM COULD SURGE AS MUCH AS TWENTY PERCENT ANNUALLY FOR THE NEXT FOUR YEARS ACCORDING TO PKF CONSULTING LIMITED A HONG KONG BASED TOURISM CONSULTANT BY NINETEEN NINETY FIVE ARRIVALS ARE EXPECTED TO BREAK THE ONE MILLION MARK LAST YEAR TAIWAN WAS THE BIGGEST SOURCE OF VISITORS ACCOUNTING FOR FORTY PERCENT THE OTHER MAIN CONTRIBUTORS WERE JAPAN THAILAND HONG KONG CHINA FRANCE AND THE U. S. VIETNAM WHICH BEGAN LIBERALIZING ITS ECONOMY IN NINETEEN EIGHTY SIX HAS EASED VISA RESTRICTIONS SIGNIFICANTLY IN HONG KONG FOR EXAMPLE TOURIST VISAS CAN BE OBTAINED IN FOUR WORKING DAYS ALREADY TWENTY AIRLINES FROM SEVENTEEN COUNTRIES MAINLY IN ASIA AND EUROPE FLY TO VIETNAM BY THE END OF THIS YEAR AT LEAST FIVE MORE FOREIGN CARRIERS ARE EXPECTED TO BE SERVING THE COUNTRY ACCORDING TO THE VIETNAM CIVIL AVIATION ADMINISTRATION QUOTE THERE'S A LOT OF POTENTIAL ESPECIALLY FOR TOURS CENTERING ON CULTURE AND HERITAGE QUOTE SAYS RENTON DE ALWIS VICE PRESIDENT OF THE PACIFIC ASIA TRAVEL ASSOCIATION THE ASSOCIATION WHICH TRACKS TRAVEL TRENDS IN THIRTY SEVEN COUNTRIES AND PLAYS AN ADVISORY ROLE FOR THEIR TOURISM DEVELOPMENT ESTABLISHED A VIETNAM CHAPTER THIS MONTH BUT MR. DE ALWIS WARNS THAT GIVEN THE COUNTRY'S HUNGER TO TAP DEEP POCKETED TOURISTS OFFICIALS AND TOUR OPERATORS MUST DEVELOP TOURISM IN A CONSCIOUS MANNER TO ENSURE THAT VIETNAM'S ENVIRONMENT AND HISTORICAL HERITAGE ARE PRESERVED OTHERWISE HE SAYS THE COUNTRY WILL END UP REPEATING THE MISTAKES OF OTHER DESTINATIONS WHICH QUICKLY ARE RUINING THEIR TOURISM VALUE HOTELS AND OTHER TOURISM RELATED PROJECTS ACCOUNT FOR ABOUT ONE BILLION DOLLARS OR TWENTY PERCENT OF TOTAL FOREIGN INVESTMENT TO DATE IN VIETNAM ACCORDING TO THE OFFICIAL VIETNAM NEWS AGENCY OF THE SEVENTY TOURISM RELATED PROJECTS UNDER WAY IN THE COUNTRY TWENTY NINE INVOLVE HONG KONG INVESTORS THE AGENCY SAYS THE FRENCH TOO ARE WASTING NO TIME FRANCE'S FEAL INTERNATIONAL S. A. AND LOCAL PARTNER SAIGON TOURIST THIS MONTH BROKE GROUND ON A DELUXE SEVENTY SIX MILLION DOLLARS THREE HUNDRED FIFTY ROOM HOTEL IN HO CHI MINH CITY THE HOTEL IS TO BE MANAGED BY MERIDIEN HOTELS ASIA PACIFIC A UNIT OF FRANCE'S MERIDIEN S. A. IT WILL BE THE CHAIN'S FIRST IN VIETNAM WHEN IT OPENS IN NINETEEN NINETY SIX OR NINETEEN NINETY SEVEN OTHER MERIDIEN HOTELS ARE PLANNED FOR HANOI AND THE COASTAL CITY OF DANANG DANAI WANSOM VICE PRESIDENT FOR MARKETING AND SALES AT HONG KONG BASED CENTURY INTERNATIONAL HOTELS SAYS HIS COMPANY'S RESEARCH FOUND THAT FIFTY FIVE TOUR OPERATORS IN FRANCE ARE ACTIVELY PROMOTING THE HISTORIC CITY OF HUE WHERE CENTURY ALREADY OPERATES AN INN THAT HELPED TOURIST ARRIVALS TO HUE DOUBLE LAST YEAR FROM A YEAR EARLIER MR. WANSOM SAYS CENTURY ALSO OPERATES A HOTEL IN HO CHI MINH CITY IN ADDITION STATE OWNED AIR FRANCE HAS HAS ADDED A WEEKLY FLIGHT BETWEEN PARIS AND HANOI BRINGING TO FIVE ITS TOTAL NUMBER OF WEEKLY FLIGHTS TO THE FORMER FRENCH COLONY THREE A WEEK TO HO CHI MINH CITY AND TWO TO HANOI OFFERING A MINIMALLY REASSURING PROGRESS REPORT GERMAN CONGLOMERATE METALLGESELLSCHAFT A. G. SAID LOSSES FROM ITS OIL TRADING POSITIONS SHOULDN'T EXCEED THE ONE POINT FIVE BILLION MARKS EIGHT HUNDRED FIFTY NINE POINT EIGHT MILLION DOLLARS PREVIOUSLY ESTIMATED METALLGESELLSCHAFT WHICH WAS PULLED FROM THE BRINK OF BANKRUPTCY EARLIER THIS MONTH BY A THREE POINT FOUR BILLION MARK RESCUE PLAN INDICATED YESTERDAY THAT IT WAS MAKING HEADWAY IN REDUCING ITS EXPOSURE TO OIL MARKETS ONE OF THE MAIN FACTORS IN THE COMPANY'S CRISIS IN A TERSE SEVEN LINE STATEMENT METALLGESELLSCHAFT SAID THAT THE UNWINDING OF ACCUMULATED OIL POSITIONS WAS QUOTE PROCEEDING MORE SMOOTHLY THAN ORIGINALLY EXPECTED AND THAT LOSSES HAD NOW STABILIZED AT THE LEVEL INITIALLY ASSUMED QUOTE THAT STATEMENT WAS BASED ON A REPORT BY KARL VON DER HEYDEN PRESIDENT OF THE U. S. BASED SUBSIDIARY METALLGESELLSCHAFT CORPORATION WHO CAME TO FRANKFURT TO UPDATE THE COMPANY'S SUPERVISORY BOARD THE TROUBLESOME OIL CONTRACTS HAD BEEN TAKEN OUT THROUGH THE U. S. UNIT OF THE COMPANY METALLGESELLSCHAFT SPOKESMAN HANS SCHREIBER DECLINED TO SAY WHETHER MR. HEYDEN'S STATEMENT INDICATED THAT LOSSES MIGHT BE LESS THAN ORIGINALLY FORESEEN THE STATEMENTS WEREN'T ENOUGH TO RESTORE INVESTOR CONFIDENCE IN THE STOCK SHARES IN METALLGESELLSCHAFT CONTINUED THEIR DOWNWARD SPIRAL SHEDDING SEVEN MARKS FOUR DOLLARS AND ONE CENT YESTERDAY TO END FRANKFURT TRADING AT TWO HUNDRED THIRTY TWO MARKS MOREOVER WITH MANAGEMENT SEEKING SHAREHOLDER APPROVAL FEBRUARY TWENTY SECOND FOR A ONE POINT FOUR BILLION MARK CAPITAL INCREASE THROUGH ISSUING NEW SHARES AT TWO HUNDRED FIFTY MARKS A SHARE THERE IS AN EFFECTIVE TECHNICAL CAP ON THE SHARES AT THAT LEVEL THE NEW MANAGEMENT BOARD UNDER KAJO NEUKIRCHEN THE TURNAROUND EXPERT WHO WAS INSTALLED AFTER FORMER CHAIRMAN HEINZ SCHIMMELBUSCH WAS OUSTED HAS A GOOD DEAL OF CREDIBILITY WITH THE GERMAN BUSINESS COMMUNITY THE SUPERVISORY BOARD'S FAILURE TO SPOT AND PREVENT THE COMPANY'S PROBLEMS EARLIER HOWEVER CONTINUES TO SPUR DEBATE IN GERMAN INDUSTRY CIRCLES ABOUT WHETHER CORPORATE SUPERVISORY BODIES NORMALLY MADE UP OF PROMINENT INDUSTRIALISTS AND BANKERS ACTUALLY ARE FULFILLING THEIR RESPONSIBILITY OF PROTECTING SHAREHOLDER INTERESTS PEOPLE CLOSE TO THE SUPERVISORY BOARD CONFIRMED REPORTS THAT THE PARENT COMPANY'S AUDITORS K. P. M. G. DEUTSCHE TREUHANDGESELLSCHAFT HAD BEEN ASKED LAST FALL TO CARRY OUT A SPECIAL AUDIT OF THE U. S. OPERATIONS THIS REQUEST HOWEVER WAS IN RESPONSE TO A ROUTINE RECOMMENDATION BY K. P. M. G. AND CONTRARY TO SOME PUBLISHED REPORTS WASN'T AN INDICATION THAT THE SUPERVISORY BOARD KNEW OF POSSIBLE PROBLEMS BUT FAILED TO ACT DECISIVELY ENOUGH TO HEAD OFF THE CRISIS THE INDIVIDUALS EMPHASIZED THE K. P. M. G. REPORT WASN'T COMPLETED BEFORE THE NOVEMBER NINETEENTH SUPERVISORY BOARD MEETING WHEN MR. SCHIMMELBUSCH'S CONTRACT WAS RENEWED FOR FIVE YEARS THESE PEOPLE SAID SALES AT JAPAN'S MAJOR DEPARTMENT STORES AND SUPERMARKETS IN DECEMBER WERE TWO POINT SIX FOUR FIVE TRILLION YEN TWENTY FOUR POINT OH SIX BILLION DOLLARS DOWN FOUR POINT FIVE PERCENT FROM THE YEAR EARLIER MONTH THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID DECEMBER'S DECLINE EXTENDED THE STREAK OF YEAR ON YEAR DROPS TO NINETEEN MONTHS AND FOLLOWS DECLINES OF SIX POINT NINE PERCENT IN NOVEMBER THREE POINT FIVE PERCENT IN OCTOBER AND THREE POINT SEVEN PERCENT IN SEPTEMBER BUT THE PACE OF THE DECLINE WAS SLOWER THAN THE SEVEN POINT FIVE PERCENT FALL IN MARCH THE SHARPEST SLIDE SINCE THE MINISTRY ADOPTED THE CURRENT STATISTICAL METHOD IN JANUARY NINETEEN EIGHTY EIGHT THE BEVERAGE COMPANY SAID NET INCOME SURGED TO FOUR HUNDRED SIXTY SIX MILLION DOLLARS OR THIRTY SIX CENTS A SHARE ON REVENUE OF THREE POINT THREE SEVEN BILLION DOLLARS THAT COMPARES WITH EARNINGS OF THREE HUNDRED NINETY TWO MILLION DOLLARS OR THIRTY CENTS A SHARE A YEAR EARLIER ON REVENUE OF THREE POINT TWO FOUR BILLION DOLLARS THE RESULTS WHICH SLIGHTLY EXCEEDED ANALYSTS' CONSENSUS ESTIMATES OF THIRTY FIVE CENTS A SHARE DEMONSTRATED CONTINUED GROWTH IN DEVELOPING MARKETS SUCH AS EASTERN EUROPE AND CHINA WHERE VOLUME AS MEASURED BY CASE SALES GREW BY TWENTY ONE PERCENT AND THIRTY EIGHT PERCENT FOR THE YEAR RESPECTIVELY ALSO DURING THE FOURTH QUARTER COCA COLA WAS ABLE TO IMPROVE ON WEAK THIRD QUARTER PERFORMANCES IN SUCH KEY MARKETS AS BRITAIN GERMANY AND JAPAN INTERNATIONAL BUSINESS ACCOUNTS FOR ABOUT EIGHTY PERCENT OF THE COMPANY'S EARNINGS AFTER AN EIGHT PERCENT YEAR ON YEAR DECLINE IN VOLUME DURING THE THIRD QUARTER IN JAPAN FOR INSTANCE COKE'S FOURTH QUARTER VOLUME ROSE THREE PERCENT FROM A YEAR EARLIER FOURTH QUARTER VOLUME IN BRITAIN HIT EIGHT PERCENT AFTER A ONE PERCENT GAIN IN THE THIRD QUARTER IN GERMANY FOURTH QUARTER VOLUME WAS EVEN WITH THE SAME PERIOD OF NINETEEN NINETY TWO COMPARED WITH AN ELEVEN PERCENT DROP IN THE THIRD QUARTER THE COMPANY ATTRIBUTED THE TURNAROUND PARTLY TO IMPROVING ECONOMIES IN THOSE COUNTRIES QUOTE THE KEY AT COKE IS THE INTERNATIONAL SIDE OF THE BUSINESS QUOTE SAID GEORGE THOMPSON SENIOR ANALYST WITH PRUDENTIAL SECURITIES WE'RE SEEING INCREASING EVIDENCE THAT THE PROBLEM THEY'VE HAD IS REALLY CYCLICALLY ORIENTED OVERALL INTERNATIONAL VOLUME GREW SEVEN PERCENT IN THE QUARTER AND SIX PERCENT FOR THE YEAR THAT COMPARES WITH FIVE PERCENT GROWTH IN THE NINETEEN NINETY TWO FOURTH QUARTER AND A FOUR PERCENT GAIN FOR ALL OF NINETEEN NINETY TWO DOMESTIC VOLUME ROSE FIVE PERCENT IN THE QUARTER POWERED MAINLY BY AN ELEVEN PERCENT JUMP IN FOUNTAIN SALES REFLECTING COCA COLA'S CONTINUED STRONG PRESENCE IN RESTAURANTS BOTTLE AND CAN CASE SALES GREW BY A MORE MODEST TWO PERCENT IN THE U. S. DURING THE FOURTH QUARTER IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE COCA COLA SHARES WERE QUOTED AT FORTY ONE DOLLARS AND SEVENTY FIVE CENTS UP SEVENTY FIVE CENTS FOR ALL OF NINETEEN NINETY THREE COCA COLA REPORTED NET INCOME OF TWO POINT ONE EIGHT BILLION DOLLARS OR ONE DOLLAR AND SIXTY SEVEN CENTS A SHARE COMPARED WITH NINETEEN NINETY TWO EARNINGS OF ONE POINT SIX SIX BILLION DOLLARS OR ONE DOLLAR AND TWENTY SIX CENTS A SHARE REVENUE GREW TO THIRTEEN POINT NINE SIX BILLION DOLLARS FROM THIRTEEN POINT OH SEVEN BILLION DOLLARS CROWN CORK AND SEAL COMPANY AGREED IN PRINCIPLE TO ACQUIRE THE TRI VALLEY GROWERS CONTAINER DIVISION OF TRI VALLEY GROWERS TERMS WEREN'T DISCLOSED THE COMPANY SAID IT EXPECTS TO CLOSE THE TRANSACTION THIS QUARTER SUBJECT TO COMPLETION OF A DEFINITIVE AGREEMENT AND RECEIPT OF REGULATORY APPROVALS CROWN SAID THE CONTAINER DIVISION OPERATES CAN MANUFACTURING PLANTS IN MODESTO FREMONT AND MERCED CALIFORNIA A GROUP OF LIBERAL DEMOCRATS WHO FAVOR A GOVERNMENT RUN NATIONAL HEALTH INSURANCE SYSTEM PROPOSED FINANCING THEIR PLAN WITH A PAYROLL TAX ON EMPLOYERS AND A NEW TWO POINT ONE PERCENT LEVY ON INDIVIDUALS' TAXABLE INCOME THE GROUP LED BY REPRESENTATIVE JAMES MCDERMOTT OF WASHINGTON AND SENATOR PAUL WELLSTONE OF MINNESOTA SUBMITTED A BILL LAST YEAR THAT WOULD SET UP A NATIONAL HEALTH INSURANCE SYSTEM SIMILAR TO CANADA'S YESTERDAY THEY UNVEILED A NEW PROPOSAL TO PAY FOR IT A PAYROLL TAX OF EIGHT POINT FOUR PERCENT FOR LARGE EMPLOYERS THOSE WITH MORE THAN SEVENTY FIVE FULL TIME EMPLOYEES EARNING WAGES AVERAGING MORE THAN TWENTY FOUR THOUSAND DOLLARS A YEAR AND A TAX OF FOUR PERCENT FOR SMALL EMPLOYERS IN ADDITION THEY PROPOSED THE TWO POINT ONE PERCENT ASSESSMENT ON INDIVIDUALS' TAXABLE INCOME AN INCREASE IN THE TAX ON CIGARETTES TO TWO DOLLARS A PACK FROM TWENTY FOUR CENTS AND A JUMP IN THE EXCISE TAX ON AMMUNITION AND HANDGUNS TO FIFTY PERCENT FROM ELEVEN PERCENT AND TEN PERCENT RESPECTIVELY THE NEW TAXES WOULD REPLACE THE PRIVATE INSURANCE PREMIUMS THAT BUSINESSES AND INDIVIDUALS NOW PAY THE MONEY WOULD BE COLLECTED BY THE FEDERAL GOVERNMENT AND ALLOCATED TO STATES TO PAY FOR A COMPREHENSIVE ARRAY OF HEALTH BENEFITS FOR ALL CITIZENS INCLUDING PREVENTIVE SERVICES HOSPITALIZATION MENTAL HEALTH AND SUBSTANCE ABUSE TREATMENT AND NURSING HOME CARE PRIVATE HEALTH INSURANCE POLICIES WOULD BE VIRTUALLY ELIMINATED WHILE THE SO CALLED SINGLE PAYER SYSTEM IS GIVEN LITTLE CHANCE OF WINNING CONGRESSIONAL APPROVAL ITS ROUGHLY ONE HUNDRED ADVOCATES REPRESENT AN IMPORTANT VOTING BLOC THEY EXPECT TO PLAY A BIG ROLE IN NEGOTIATIONS ON HEALTH OVERHAUL LEGISLATION A NUMBER OF THE GROUP'S PREVIOUS FINANCING PROPOSALS INCLUDING HIGHER INCOME TAX RATES ON CORPORATIONS AND WEALTHY INDIVIDUALS AND CERTAIN SAVINGS IN THE MEDICARE PROGRAM WERE ADOPTED BY CONGRESS LAST SUMMER AS PART OF ITS DEFICIT REDUCTION PACKAGE THE CLINTON HEALTH BILL WOULD CONTINUE TO INSURE PEOPLE MOSTLY THROUGH PRIVATE INSURANCE POLICIES THE PRESIDENT WOULD PAY FOR SUCH COVERAGE BY REQUIRING ALL EMPLOYERS TO HELP PAY THEIR WORKERS' INSURANCE PREMIUMS HE WOULD LIMIT HOW MUCH EMPLOYERS AND INDIVIDUALS WOULD HAVE TO PAY THOUGH ITALIAN STATE AIRLINE ALITALIA SWEPT OUT ITS TOP MANAGEMENT AND IS HOPING THAT TWO U. S. COMPUTER INDUSTRY EXECUTIVES WILL BE ABLE TO TURN AROUND THE CARRIER'S FORTUNES RENATO RIVERSO I. B. M. EUROPE'S TOP EXECUTIVE WAS NAMED ALITALIA'S NEW CHAIRMAN ROBERTO SCHISANO HEAD OF TEXAS INSTRUMENTS EUROPE WAS NAMED TO THE NUMBER TWO SPOT OF MANAGING DIRECTOR ALITALIA SAID THE PREVIOUSLY CEREMONIAL POST OF CHAIRMAN WILL BE GRANTED SOME EXECUTIVE POWERS UNTIL NOW NEARLY ALL OF THE MANAGEMENT POWER RESTED WITH THE MANAGING DIRECTOR GIOVANNI BISIGNANI HE AND SEVERAL OTHER TOP MANAGERS WILL LEAVE THE AIRLINE MR. BISIGNANI FORTY SEVEN YEARS OLD HAS HEADED ALITALIA SINCE NINETEEN EIGHTY NINE HE WILL MOVE TO A SMALL STATE RUN SHIPPING COMPANY TIRRENIA ALITALIA HASN'T TURNED A PROFIT SINCE NINETEEN EIGHTY EIGHT WITH LOSSES TOTALING THREE HUNDRED SIXTY SIX BILLION LIRE TWO HUNDRED SIXTEEN MILLION DOLLARS FROM NINETEEN EIGHTY NINE TO NINETEEN NINETY TWO ANALYSTS ESTIMATE A LOSS OF MORE THAN THREE HUNDRED BILLION LIRE FOR NINETEEN NINETY THREE ALONE MR. RIVERSO'S DEPARTURE FROM I. B. M. EUROPE A UNIT OF INTERNATIONAL BUSINESS MACHINES CORPORATION HAD BEEN ANNOUNCED HE IS LEAVING AT THE NORMAL I. B. M. RETIREMENT AGE OF SIXTY NEXT MONTH DURING HIS THREE YEAR TENURE THE BIG EUROPEAN OPERATIONS BECAME A PROBLEM CHILD FOR I. B. M. ALTHOUGH COMPUTER INDUSTRY ANALYSTS GENERALLY BLAMED THE WOES ON A SAGGING EUROPEAN COMPUTER MARKET AND WORLD WIDE STRATEGY PROBLEMS AT I. B. M. UNDER MR. RIVERSO'S WATCH I. B. M.'S EUROPEAN WORK FORCE FELL BY ROUGHLY TWENTY FIVE PERCENT TO SEVENTY SEVEN THOUSAND MR. SCHISANO IS A FORMER CHAIRMAN OF TEXAS INSTRUMENTS EUROPE THE EUROPEAN SUBSIDIARY OF TEXAS INSTRUMENTS INCORPORATED HAROLD POLING FORMER FORD MOTOR COMPANY CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOINED THIS INVESTMENT FIRM AS A PARTNER MR. POLING SIXTY EIGHT YEARS OLD WHO LEFT THE AUTO MAKER IN NOVEMBER ALSO IS AN INVESTOR IN METAPOINT WHICH SPECIALIZES IN BUYOUTS OF SMALL CLOSELY HELD BUSINESSES IT HAS THIRTY TWO MILLION DOLLARS IN CAPITAL RAISED FROM A GROUP OF THIRTY INDIVIDUALS DAN QUAYLE JUST CAN'T SEEM TO GET AWAY FROM POTATOES THE FORMER VICE PRESIDENT WHO ONCE INADVERTENTLY ENCOURAGED A YOUNGSTER TO MISSPELL THE WORD QUOTE POTATO QUOTE WILL APPEAR IN A TELEVISION COMMERCIAL FOR A NEW POTATO CHIP FROM PEPSICO INCORPORATED'S FRITO LAY DIVISION MR. QUAYLE MAKES A CAMEO APPEARANCE IN THE SPOT WHICH WILL BE SHOWN ONLY ONCE DURING THE SUPER BOWL THIS SUNDAY IT ISN'T MR. QUAYLE'S FIRST APPEARANCE IN ADVERTISING BUT IT IS PERHAPS THE FIRST OF HIS CHOICE WHILE HE WAS A HEARTBEAT AWAY FROM THE PRESIDENCY MR. QUAYLE WAS INCLUDED IN A SPATE OF ADVERTISING MUCH OF IT SUBJECTING HIM TO RIDICULE OVER THE POTATO MISSPELLING INCIDENT FOR EXAMPLE A SHOE MANUFACTURER PLACED PRINT ADS FEATURING MR. QUAYLE WEARING A GOOFY EXPRESSION THE HEADLINE DON'T FORGET TO VOT MR. QUAYLE WAS CONTACTED BY FRITO LAY'S AD AGENCY OMNICOM GROUP'S B. B. D. O. THERE WAS NO HESITATION SAYS MAX W. HITTLE JUNIOR AN ATTORNEY WITH KRIEG DEVAULT ALEXANDER AND CAPEHART AN INDIANAPOLIS LAW FIRM WHERE MR. QUAYLE'S WIFE MARILYN IS A PARTNER MR. QUAYLE HIMSELF IS EMBARKING ON A THIRTY THREE CITY TOUR TO PROMOTE A NEW NONFICTION BOOK HE WANTED TO DO THE COMMERCIAL FOR FUN SAYS MR. HITTLE IT IS A FUN WAY TO PRESENT HIMSELF TO THE PUBLIC DOES THIS HARM HIS CHANCES IN THE EVENT HE WANTS TO BE TAKEN SERIOUSLY FOR A RUN FOR THE PRESIDENCY IN NINETEEN NINETY SIX MR. QUAYLE COULDN'T BE REACHED FOR COMMENT BUT MR. HITTLE SAYS THIS COMMERCIAL ISN'T TO BE TAKEN AS A POLITICAL STATEMENT IT WON'T HURT AT ALL MR. QUAYLE MAY BE THE FIRST FORMER VICE PRESIDENT TO APPEAR IN ADS HAWKING A PRODUCT OF COURSE OTHER POLITICIANS HAVE BEEN FEATURED IN COMMERCIALS AND FORMER CANDIDATES FOR VICE PRESIDENT HAVE MADE COMMERCIALS WILLIAM E. MILLER WHO RAN WITH BARRY GOLDWATER IN NINETEEN SIXTY FOUR MADE A SPOT FOR AMERICAN EXPRESS CARDS AND GERALDINE FERRARO WHO WAS THE RUNNING MATE OF WALTER MONDALE IN NINETEEN EIGHTY FOUR APPEARED IN A DIET PEPSI COMMERCIAL MR. QUAYLE WHO IS DONATING HIS UNDISCLOSED EARNINGS FROM THE SPOT TO CHARITY IS USED QUOTE FOR THE SHOCK VALUE OF THE UNEXPECTED QUOTE SAYS ALAN POTTASCH A SENIOR VICE PRESIDENT AT PEPSI COLA INTERNATIONAL WHO WORKED ON THE COMMERCIAL FOR WAVY LAY'S POTATO CHIPS THE COMMERCIAL ALSO FEATURES CHILD STAR ELIJAH WOOD WHO IS SEATED IN ONE OF THE WORST SEATS IN THE GEORGIA DOME IN ATLANTA THE SITE OF THE SUPER BOWL MUNCHING ON WAVY LAY'S HE PROPOSES A BET TO A GENTLEMAN SEATED IN FRONT OF HIM IF THE MAN CAN'T EAT JUST ONE WAVY LAY'S HE MUST TRADE SEATS WITH THE YOUTH AS ELIJAH KEEPS WINNING BETS HE KEEPS IMPROVING HIS SEAT POSITION FINALLY HE GETS TO MR. QUAYLE WHO IS SEATED IN THE FIRST ROW ON THE FIFTY YARD LINE AS FAST AS YOU CAN SAY FAMILY VALUES MR. QUAYLE LOSES THE WAGER ACCORDING TO A PEPSICO OFFICIAL ONE SCENARIO HAD ELIJAH WORK MR. QUAYLE'S FLUB OF POTATO INTO THE SCRIPT BUT NO ONE HAD THE NERVE TO ASK MR. QUAYLE IF HE WOULD GO ALONG WITH IT SO WE DROPPED IT SAYS THE OFFICIAL WHO DIDN'T WANT TO BE IDENTIFIED SOME MARKETING EXPERTS ARE UNIMPRESSED WITH MR. QUAYLE'S FORAY FROM PENNSYLVANIA AVENUE TO MADISON AVENUE BOTH MR. QUAYLE AND FRITO LAY HAVE REACHED NEW LOWS SAYS STEVEN E. PERMUT PRESIDENT OF MARKETING SCIENCES INCORPORATED A MARKETING AND CONSULTING FIRM IN GUILFORD CONNECTICUT SHOWING HIM IS NOT THE WAY TO ENCOURAGE A CONSUMER TO BUY THE PRODUCT SHOULD I BUY THIS POTATO CHIP SIMPLY BECAUSE DAN QUAYLE CAN'T EAT JUST ONE ALL THIS WILL DO IS PROVIDE GRIST FOR THE JAY LENO AND DAVID LETTERMAN JOKE MACHINES QUOTE PRIVATE STOCK DEALS FEW INVESTORS UNDERSTAND THEM FEWER STILL ARE INVITED TO BUY THEM BUT MUTUAL FUND MANAGERS ARE AMONG THOSE WHO CAN GET A LUCRATIVE PIECE OF THE ACTION A LOOK AT ONE INVESTMENT BY FUND MANAGER ALAN G. CARR SHEDS LIGHT ON HOW SUCH PRIVATE DEALS WORK AND THE NETWORKING BEHIND THEM MR. CARR IS THE CHIEF STOCKPICKER FOR TWO PUBLICLY TRADED HEALTH CARE STOCK FUNDS MANAGED BY A BOSTON MONEY MANAGEMENT SUBSIDIARY OF HAMBRECHT AND QUIST INCORPORATED BOTH HEALTH CARE FUNDS HOLD STAKES IN THE BIOTECHNOLOGY COMPANY GILEAD SCIENCES INCORPORATED WHICH MR. CARR ALSO HAS HELD IN HIS PERSONAL ACCOUNT SINCE NINETEEN EIGHTY EIGHT REGULATORY FILINGS SHOW LIKE MANY PRIVATE FINANCING DEALS GILEAD'S NINETEEN EIGHTY EIGHT PRIVATE STOCK SALE TOOK PLACE YEARS BEFORE THE COMPANY WENT PUBLIC EARLY INVESTORS SUCH AS MR. CARR ARE TAKING A BIG RISK BECAUSE THERE'S NO GUARANTEE THE STOCK WILL EVER REACH THE PUBLIC MARKET MUTUAL FUND MANAGERS WHO BUY SUCH DEALS AREN'T DOING ANYTHING WRONG AS LONG AS THEY COMPLY WITH THEIR COMPANIES' DISCLOSURE POLICIES INDUSTRY LAWYERS SAY BUT THE POTENTIAL FOR A CONFLICT OF INTEREST ARISES IF THE VALUE OF THE COMPANY'S STOCK INCREASES AS A RESULT OF PURCHASES BY THE MUTUAL FUND QUOTE JUST BECAUSE THERE IS A POTENTIAL CONFLICT OF INTEREST DOESN'T MEAN THERE IS ONE QUOTE SAYS MR. CARR WHO DECLARES IN AN INTERVIEW THAT MORE THAN HALF OF HIS PERSONAL ASSETS ARE INVESTED IN THE TWO FUNDS IT IS PUBLIC KNOWLEDGE THAT I OWN THESE SHARES AND EVERYTHING HAS BEEN FULLY DISCLOSED MR. CARR SAYS HE HAS COMPLIED WITH ALL IN HOUSE RULES CHECKING WITH THE FUNDS' COUNSEL ABOUT HIS PERSONAL STAKE IN GILEAD A FOSTER CITY CALIFORNIA COMPANY SEEKING TO CREATE A RANGE OF DRUGS THAT WILL TARGET THE CULPABLE GENES AND PROTEINS INVOLVED IN VIRAL INFECTIONS CARDIOVASCULAR DISEASE CANCER AND INFLAMMATION THE MERE FACT THAT THESE DEALS ARE OFFERED TO MUTUAL FUND MANAGERS IS IN AND OF ITSELF NOT A SIN SAYS ROY ADAMS A LAWYER AT HELLER EHRMAN WHITE AND MCAULIFFE IN SAN FRANCISCO ONLY IF MANAGERS ACCEPT A PERSONAL DEAL WITH THE UNDERSTANDING THAT THEY WILL BUY THE COMPANY FOR THE FUND LATER DOES A LEGAL PROBLEM ARISE THERE HAS BEEN NO SUCH SUGGESTION IN MR. CARR'S CASE THE GILEAD INVESTMENT BEGAN WITH A FRIENDSHIP BETWEEN MR. CARR AND THE UPSTART BIOTECH COMPANY'S CHIEF FINANCIAL OFFICER WHO HAD PREVIOUSLY WORKED AS AN INVESTMENT BANKER AT HAMBRECHT AND QUIST MR. CARR BOUGHT SHARES OF GILEAD FOR HIMSELF AND ABOUT THREE YEARS LATER FOR ONE OF HIS FUNDS IN SEPARATE PRIVATE PLACEMENTS THAT'S WALL STREET JARGON FOR A STOCK SALE MADE TO A SELECT GROUP OF SOPHISTICATED INVESTORS USUALLY BY A COMPANY TOO YOUNG SMALL OR RISKY TO MAKE A PUBLIC STOCK OFFERING MR. CARR GOT IN CHEAPER AND EARLIER IN NINETEEN EIGHTY EIGHT HE PAID A SPLIT ADJUSTED THREE DOLLARS AND SEVENTY FIVE CENTS A SHARE FOR PREFERRED STOCK THAT WAS OFFERED ALMOST EXCLUSIVELY TO SO CALLED VENTURE CAPITAL INVESTORS THEN IN NINETEEN NINETY ONE HIS H. AND Q. HEALTHCARE INVESTORS VENTURED IN PAYING A SPLIT ADJUSTED TEN DOLLARS AND FIFTY CENTS A SHARE FOR SIMILAR PREFERRED H. AND Q. HEALTHCARE INVESTORS IS AN INVESTMENT VEHICLE KNOWN AS A CLOSED END FUND THAT TRADES ON THE NEW YORK STOCK EXCHANGE ALSO A HOLDER OF GILEAD IS H. AND Q. LIFE SCIENCES INVESTORS A YOUNGER CLOSED END FUND TRADING ON THE BIG BOARD TOGETHER AS OF SEPTEMBER THIRTIETH THE TWO FUNDS HELD ABOUT ONE HUNDRED TWENTY SEVEN THOUSAND SHARES NOW VALUED IN THE STOCK MARKET AT ONE POINT SIX MILLION DOLLARS ACCORDING TO MORNINGSTAR CLOSED END FUNDS A CHICAGO NEWSLETTER GILEAD MADE ITS INITIAL PUBLIC OFFERING IN JANUARY NINETEEN NINETY TWO AT FIFTEEN DOLLARS A SHARE IN THE I. P. O. ALL PREFERRED HOLDINGS WERE CONVERTED INTO COMMON STOCK THE FUNDS COULDN'T BUY THE I. P. O. AT THAT INITIAL PRICE BECAUSE HAMBRECHT WAS CO MANAGER OF THE OFFERING AND SUCH A PURCHASE WOULD BE BARRED BUT THEY DID BUY SHARES AFTER THE OFFERING MR. CARR SAYS SOON AFTER THE I. P. O. THE STOCK TRADED AS HIGH AS TWENTY FOUR DOLLARS AND TWENTY FIVE CENTS BUT NOW IT IS WAY BELOW THAT LEVEL GILEAD CLOSED AT TWELVE POINT EIGHT SEVEN FIVE DOLLARS UP SEVENTY FIVE CENTS YESTERDAY IN THE NASDAQ STOCK MARKET BOTH MR. CARR AND THE FUNDS STILL HOLD GILEAD SHARES IN GENERAL I DON'T INVEST SIDE BY SIDE WITH THE FUND BUT A GOOD FRIEND OF MINE MICHAEL BIGHAM WHO IS GILEAD'S C. F. O. HAD RECENTLY JOINED THE COMPANY AND ASKED IF I WANTED TO MAKE AN INVESTMENT MR. CARR SAYS QUOTE I TRIED TO TALK HIM INTO LETTING THE FUND INVEST AT THAT TIME BUT HE WOULD NOT TAKE THE MONEY QUOTE MR. BIGHAM WAS TRAVELING AND COULDN'T BE REACHED H. DUBOSE MONTGOMERY A DIRECTOR OF GILEAD WHO SERVED AS CHAIRMAN WHEN THE COMPANY WENT PUBLIC SAYS THE NINETEEN EIGHTY EIGHT ROUND OF FINANCING GOT DONE BASICALLY THROUGH WORD OF MOUTH AMONG VENTURE CAPITALISTS MR. MONTGOMERY IS A FOUNDER OF MENLO VENTURES A MENLO PARK CALIFORNIA VENTURE CAPITAL FIRM THAT PROVIDED SEED MONEY FOR GILEAD BACK IN NINETEEN EIGHTY EIGHT THE BIOTECH COMPANY WAS STILL JUST GETTING STARTED AND THE FINANCING WAS COMING FROM OTHER VENTURE CAPITALISTS MR. MONTGOMERY SAYS INDIVIDUALS COULD HAVE COME IN THROUGH THEIR CONTACTS KNOWING SCIENTISTS OR A FRIEND OR NEIGHBOR MR. CARR'S ORIGINAL PERSONAL INVESTMENT OF FIVE THOUSAND DOLLARS HAD GOOD COMPANY JUDGING BY THE LIST IN REGULATORY FILINGS OF OTHER NINETEEN EIGHTY EIGHT PRIVATE INVESTORS AND THEIR JOBS AT THE TIME INVESTMENTS INCLUDED TWENTY FIVE THOUSAND DOLLARS FROM GORDON E. MOORE CHAIRMAN OF INTEL CORPORATION TEN THOUSAND DOLLARS FROM JAMES M. DENNY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF SEARS ROEBUCK AND COMPANY TWENTY FIVE THOUSAND DOLLARS FROM MICHAEL MCCAFFERY DIRECTOR OF INVESTMENT BANKING AT SAN FRANCISCO BASED ROBERTSON STEPHENS AND COMPANY WHICH WOULD LATER BE LEAD UNDERWRITER OF GILEAD'S I. P. O. AND TEN THOUSAND DOLLARS FROM WILLIAM B. WELTY OF BROKERAGE FIRM VOLPE WELTY AND COMPANY WHO HAD JUST LEFT HIS POSITION AS RESEARCH DIRECTOR AT HAMBRECHT AND QUIST GILEAD ISN'T THE ONLY COMPANY IN WHICH BOTH MR. CARR AND HIS FUNDS HAVE INVESTED BEFORE EITHER FUND WAS UP AND RUNNING MR. CARR SAYS HE BOUGHT PRIVATE SHARES IN VENCOR INCORPORATED IN LATE NINETEEN EIGHTY SIX AT ABOUT TWO DOLLARS ADJUSTED FOR SPLITS BASED IN LOUISVILLE KENTUCKY VENCOR PROVIDES LONG TERM CARE TO CHRONICALLY ILL PATIENTS IN SEPTEMBER NINETEEN EIGHTY NINE VENCOR WENT PUBLIC AT A SPLIT ADJUSTED FOUR DOLLARS AND FIFTY THREE CENTS MR. CARR SAYS H. AND Q. HEALTHCARE INVESTORS BOUGHT SOME SHARES AFTER THE OFFERING AND STILL HOLDS THE STOCK NOW TRADING AT THIRTY POINT EIGHT SEVEN FIVE DOLLARS HAMBRECHT AND QUIST BASED IN SAN FRANCISCO WAS A CO MANAGER OF VENCOR'S I. P. O. MR. CARR SAYS HE HASN'T SOLD ANY OF HIS GILEAD SHARES AND CAN'T DO SO UNTIL AFTER THE FUND GETS OUT OF THE STOCK HE HAS GIVEN SOME OF HIS VENCOR HOLDINGS AWAY TO CHARITY IN INCREMENTS OVER THE PAST THREE YEARS DOES SITTING WITH SUCH A NICE PERSONAL PAPER PROFIT ON A HOLDING MAKE HIM MORE RELUCTANT TO YANK GILEAD STOCK OUT OF THE FUNDS THAN HE MIGHT OTHERWISE BE MR. CARR DOESN'T THINK SO WITHIN THE LAST YEAR I HAVE EVEN BOUGHT MORE GILEAD STOCK FOR THE FUNDS HE SAYS EARLIER THIS MONTH STAR FUND MANAGER JOHN KAWESKE WAS FIRED FROM INVESCO FUNDS GROUP OF DENVER FOR ALLEGEDLY FAILING TO REPORT SOME PERSONAL TRADES TO HIS EMPLOYER AT THAT TIME MR. KAWESKE SAID HE WAS SHOCKED BY THE FIRING AND INDICATED HE BELIEVED INVESCO MAY HAVE DISMISSED HIM BECAUSE IT SUSPECTED HE WAS GETTING READY TO LEAVE ANYWAY INVESCO'S PARENT COMPANY IS INVESCO P. L. C. OF LONDON MR. KAWESKE'S LAWYER HAS PREVIOUSLY SAID THAT ANY VIOLATIONS BY HIS CLIENT IF THEY OCCURRED WERE HIGHLY TECHNICAL IN NATURE THE BRITISH PARENT COMPANY HAS HAD ITS OWN REPORTING PROBLEMS IN THE PAST IN NINETEEN NINETY TWO THE BRITISH COMPANY WAS FINED ONE HUNDRED SEVENTY FIVE THOUSAND DOLLARS BY THE U. S. SECURITIES AND EXCHANGE COMMISSION FOR VIOLATING FEDERAL RULES REQUIRING DISCLOSURE OF BULK STOCK PURCHASES DENVER BASED INVESCO SAYS AND IN MID NINETEEN NINETY THREE BRITISH REGULATORS SAID THEY HAD FINED THE UNITED KINGDOM COMPANY SEVEN HUNDRED FIFTY THOUSAND POUNDS AND ORDERED IT TO PAY ONE POINT SIX MILLION POUNDS IN COSTS LARGELY FOR FAILURE TO HAVE ADEQUATE SYSTEMS OF CONTROL AND COMPLIANCE ARRANGEMENTS ORDERS FOR DURABLE GOODS IN NINETEEN NINETY THREE SHOWED THEIR STRONGEST GAIN IN FIVE YEARS PROVIDING ANOTHER SIGN THAT THE MANUFACTURING SECTOR IS RECOVERING FROM A LONG PERIOD OF STAGNATION ORDERS FOR DURABLE GOODS PRODUCTS WHICH ARE EXPECTED TO LAST THREE YEARS OR MORE ROSE EIGHT POINT SIX PERCENT LAST YEAR TO ONE POINT FIVE NINE SEVEN TRILLION DOLLARS THE COMMERCE DEPARTMENT SAID IT WAS THE LARGEST INCREASE SINCE THE NINE POINT SIX PERCENT RISE IN NINETEEN EIGHTY EIGHT IN DECEMBER DURABLE GOODS ORDERS CLIMBED TWO POINT TWO PERCENT TO ONE HUNDRED FORTY TWO POINT SEVEN EIGHT BILLION DOLLARS THE FIFTH CONSECUTIVE MONTHLY INCREASE ANALYSTS SAID THE LATEST FIGURES SUGGEST THAT THE MANUFACTURING SECTOR HAS BECOME MUCH HEALTHIER IN RECENT MONTHS AFTER YEARS OF RESTRUCTURINGS AND LAYOFFS THEY ALSO SAID THE FIGURES SUGGEST THAT INDUSTRIAL PRODUCTION WILL CONTINUE TO IMPROVE THIS YEAR QUOTE WE'VE PAID OUR DUES AND NOW IT'S TIME TO REAP THE REWARD QUOTE SAID JAMES SMITH FINANCE PROFESSOR AT THE UNIVERSITY OF NORTH CAROLINA THE PICKUP IN ACTIVITY IS LIKELY TO CURB MASSIVE JOB CUTBACKS IN RECENT MONTHS AT MANY U. S. FACTORIES BUT EMPLOYMENT GROWTH STILL ISN'T LIKELY TO PICK UP DRASTICALLY ANALYSTS SAID JOBS IN THE MANUFACTURING SECTOR WILL LIKELY STABILIZE OR RISE A LITTLE BIT IN NINETEEN NINETY FOUR SAID STUART HOFFMAN CHIEF ECONOMIST AT P. N. C. BANK CORPORATION OF PITTSBURGH AND CHAIRMAN OF THE AMERICAN BANKERS ASSOCIATION'S ECONOMIC ADVISORY COMMITTEE ECONOMISTS WERE PARTICULARLY ENCOURAGED THAT DESPITE CONTINUAL CUTBACKS IN DEFENSE SPENDING OVERALL ORDERS WERE STILL STRONG IN NINETEEN NINETY THREE ANALYSTS OFTEN EXCLUDE DEFENSE WHEN INTERPRETING ORDERS BECAUSE THESE BIG TICKET ITEMS OFTEN ARE MORE REFLECTIVE OF GOVERNMENT FISCAL POLICY THAN CAPITAL SPENDING THE RISE IN DURABLE GOODS ORDERS IN DECEMBER FOLLOWED A REVISED TWO POINT THREE PERCENT GAIN IN NOVEMBER AND A TWO POINT SIX PERCENT INCREASE IN OCTOBER THE STRONGEST SHOWING FOR DECEMBER WAS IN ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT WHICH ROSE FIVE POINT FOUR PERCENT ANALYSTS ALSO NOTED SIGNIFICANT INCREASES IN ORDERS FOR NON DEFENSE CAPITAL GOODS PARTICULARLY COMPUTERS AND OFFICE EQUIPMENT TRANSPORTATION THE MOST VOLATILE OF THE SECTORS ROSE THE LEAST ONE POINT TWO PERCENT AIRCRAFT ORDERS HOWEVER FELL DURING THE MONTH THAT MAKES THE TRANSPORTATION FIGURES LOOK BETTER BECAUSE THE OFTEN VOLATILE AIRCRAFT ORDERS FREQUENTLY MAKE THE TRANSPORTATION SECTOR APPEAR HEALTHIER THAN IT ACTUALLY IS UNFILLED ORDERS FOR DURABLE GOODS FELL FOR THE TENTH CONSECUTIVE MONTH TO THE LOWEST LEVEL SINCE MARCH NINETEEN EIGHTY EIGHT A BACKLOG OF ORDERS IS OFTEN CONSIDERED A MEASURE OF WHETHER CURRENT FACILITIES AND MANPOWER CAN KEEP UP WITH DEMAND A CONSISTENTLY DECLINING NUMBER SUGGESTS NO NEED FOR LARGER PRODUCTION LINES AND INCREASED EMPLOYMENT HOWEVER SOME ECONOMISTS CONTEND THAT THE SHRINKING BACKLOG IS DUE TO STRONG SHIPMENTS WHICH ALSO INCREASED FOR THE FIFTH MONTH IN A ROW OUTPACING THE GROWTH IN ORDERS THE SIGNIFICANCE OF THE CONTINUING DECLINE IN UNFILLED ORDERS IS NOT NECESSARILY A NEGATIVE SAID TOM RUNIEWICZ AN ECONOMIST AT W. E. F. A. GROUP IN BALA CYNWYD PENNSYLVANIA MANUFACTURERS UNDERSTAND THEY NEED TO BE MUCH MORE EFFICIENT OR THEY WON'T BE IN BUSINESS IN THE NEXT FIVE YEARS IT MAY BE POSITIVE IN THE SENSE THAT TURNAROUND TIME IN FILLING ORDERS HAS BEEN SHORTENED MR. RUNIEWICZ SAID AND MANUFACTURERS ARE WORKING WITH LESS OF A BACKLOG THE MANUFACTURING TREND OF INVESTMENT IN MORE EFFICIENT EQUIPMENT WILL CONTINUE KEEPING THE SIZE OF THE WORK FORCE FLAT HE SAID SEPARATELY INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE TUMBLED FIFTY SIX THOUSAND IN THE WEEK ENDED JANUARY TWENTY SECOND TO THREE HUNDRED NINE THOUSAND ANALYSTS SAID THAT COLD WEATHER THE LOS ANGELES EARTHQUAKE AND THE MARTIN LUTHER KING JUNIOR HOLIDAY PROBABLY KEPT MANY AMERICANS FROM FILING CLAIMS DURING THE WEEK THE FOUR WEEK AVERAGE FOR SEASONALLY ADJUSTED CLAIMS FOR THE SAME TIME FRAME WAS THREE HUNDRED FORTY SEVEN THOUSAND UP FROM A REVISED THREE HUNDRED FORTY THREE THOUSAND FOR THE PREVIOUS WEEK ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS JOHNSTON INDUSTRIES INCORPORATED DESPITE STRONG OPERATING PROFIT EXPECTS TO POST A MORE THAN FORTY PERCENT DECLINE IN FISCAL SECOND QUARTER NET INCOME MAINLY DUE TO PORTFOLIO LOSSES IN AN INVESTMENT COMPANY IN WHICH JOHNSTON HOLDS A FORTY FOUR PERCENT STAKE IN AN INTERVIEW OFFICIALS OF THE TEXTILE COMPANY SAID THEY EXPECT TO POST A DECLINE IN NET FOR THE QUARTER ENDED DECEMBER THIRTY FIRST TO ABOUT TEN CENTS A SHARE OR ABOUT ONE POINT ONE MILLION DOLLARS FROM SEVENTEEN CENTS A SHARE OR ONE POINT NINE MILLION DOLLARS PER SHARE NUMBERS FOR A YEAR AGO REFLECT A THREE FOR TWO STOCK SPLIT EFFECTIVE EARLIER THIS WEEK NONETHELESS DAVID L. CHANDLER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID QUOTE WE THINK WE CAN COMFORTABLY EXCEED EARNINGS PER SHARE OF A YEAR AGO FOR THE FULL YEAR QUOTE ADJUSTED FOR THE STOCK SPLIT HE ALSO SAID THE COMPANY IS REVIEWING RAISING THE DIVIDEND POSSIBLY IN THE THIRD QUARTER THE COMPANY LAST RAISED THE DIVIDEND TWENTY FIVE PERCENT IN DECEMBER NINETEEN NINETY TWO TO EIGHT CENTS A SHARE FOR THE SECOND QUARTER GERALD B. ANDREWS PRESIDENT AND CHIEF OPERATING OFFICER EXPLAINED THAT JOHNSTON'S STAKE IN JUPITER NATIONAL INCORPORATED A PUBLICLY TRADED VENTURE CAPITAL FIRM WOULD RESULT IN A PRETAX LOSS FOR JOHNSTON OF ONE HUNDRED SEVENTY FOUR THOUSAND DOLLARS JUPITER HAD A THREE MILLION DOLLAR PORTFOLIO LOSS RELATED TO AN INVESTMENT IN ZOLL MEDICAL CORPORATION A COMPANY WHOSE STOCK HAS SINCE NEARLY RECOVERED A YEAR AGO JUPITER NATIONAL CONTRIBUTED PRETAX PROFIT OF TWO POINT EIGHT MILLION DOLLARS TO JOHNSTON'S EARNINGS MR. CHANDLER SAID HOWEVER THAT JOHNSTON EXPECTS THE JUPITER NATIONAL PORTFOLIO TO PROVIDE POSITIVE BENEFITS TO THE COMPANY IN THE THIRD AND FOURTH QUARTERS THE OFFICIALS EXPECT TO REPORT A TWELVE PERCENT TO FOURTEEN PERCENT INCREASE IN SALES FOR THE SECOND QUARTER FROM THE YEAR AGO THIRTY THREE POINT SEVEN MILLION DOLLARS THE OVERALL ORDER BACKLOG FOR THE PERIOD WAS UP ABOUT THIRTEEN PERCENT TO FOURTEEN PERCENT FROM THE PREVIOUS YEAR MR. ANDREWS ALSO WAS OPTIMISTIC ABOUT THE BALANCE OF THE FISCAL YEAR FOR THE YEAR ENDED JUNE THIRTIETH NINETEEN NINETY THREE JOHNSTON HAD NET OF EIGHT POINT NINE MILLION DOLLARS OR EIGHTY ONE CENTS A SHARE RESTATED FOR THE SPLIT SALES WERE ONE HUNDRED FIFTY FOUR POINT ONE MILLION DOLLARS PIERRE BOIVIN WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDING DONALD MACMARTIN WHO RESIGNED LAST WEEK FROM THIS MAKER OF HOCKEY EQUIPMENT MR. BOIVIN PREVIOUSLY WAS PRESIDENT AND CHIEF EXECUTIVE OF WEIDER SPORTING GOODS INCORPORATED OF CALIFORNIA GEORGE B. BEITZEL SIXTY FIVE YEARS OLD A RETIRED SENIOR VICE PRESIDENT OF INTERNATIONAL BUSINESS MACHINES CORPORATION WAS ELECTED A DIRECTOR OF THIS INFORMATION TECHNOLOGY SERVICES CONCERN MR. BEITZEL SUCCEEDS ROBERT STEPHENSON FIFTY FIVE AN I. B. M. VICE PRESIDENT AND PRESIDENT OF I. B. M.'S WORLD TRADE ASIA CORPORATION UNIT WHO RESIGNED FROM C. T. G.'S BOARD DUE TO THE DEMANDS OF HIS NEW ASIA POST MR. STEPHENSON HAD SERVED AS A DIRECTOR FOR FIVE YEARS THE BOARD REMAINS AT SEVEN MEMBERS GEORGE H. CONRADES FIFTY FOUR WAS NAMED A DIRECTOR OF THIS ELECTRICAL EQUIPMENT BROADCASTING AND POWER GENERATION CONCERN INCREASING THE BOARD TO TEN MEMBERS MR. CONRADES IS THE NEWLY APPOINTED CHIEF EXECUTIVE OFFICER OF BOLT BERANEK AND NEWMAN INCORPORATED IN CAMBRIDGE MASSACHUSETTS IN NINETEEN NINETY TWO HE ENDED A THIRTY ONE YEAR CAREER AT INTERNATIONAL BUSINESS MACHINES CORPORATION WHERE HIS LAST POST WAS SENIOR VICE PRESIDENT OF CORPORATE MARKETING AND SERVICES ROBERT W. KEENER SIXTY TWO YEARS OLD RETIRED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NORTHWEST PIPELINE CORPORATION WAS ELECTED A DIRECTOR OF THIS MAKER OF STEEL PLATE AND PIPE HE FILLS A VACANCY ON THE NINE MEMBER BOARD CREATED BY THE DEATH OF ALAN FURTH IN JUNE NINETEEN NINETY THREE THE SENATE IN A BIPARTISAN SHOW OF SUPPORT FOR RECONCILIATION WITH VIETNAM VOTED TO URGE PRESIDENT CLINTON TO END THE U. S. TRADE EMBARGO AGAINST HANOI TWENTY REPUBLICANS JOINED FORTY TWO DEMOCRATS ON THE SIXTY TWO TO THIRTY EIGHT ROLL CALL AND THE DEPTH OF SUPPORT MAKES IT MORE LIKELY THAT MR. CLINTON WILL MOVE SOON TO LIFT THE RESTRICTIONS FIRST IMPOSED ON VIETNAM AFTER THE FALL OF SAIGON TO COMMUNISTS IN NINETEEN SEVENTY FIVE QUOTE IT WILL BE WEEKS NOT MONTHS QUOTE PREDICTED SENATOR JOHN MCCAIN OF ARIZONA A FORMER NAVY PILOT AND PRISONER OF WAR WHO WAS PIVOTAL IN WINNING G. O. P. SUPPORT FOR THE RESOLUTION MINORITY LEADER ROBERT DOLE OF KANSAS AND SENATOR PHIL GRAMM OF TEXAS TWO POTENTIAL PRESIDENTIAL CHALLENGERS IN NINETEEN NINETY SIX OPPOSED THE MEASURE BUT MOST OF THE REMAINING G. O. P. LEADERSHIP FOLLOWED THE EXAMPLE OF MINORITY WHIP ALAN SIMPSON OF WYOMING AND URGED ENDING THE EMBARGO AMONG DEMOCRATS THE POLITICAL PICTURE WAS AT LEAST AS MIXED WHILE BUSINESS AND OIL INTERESTS WERE INFLUENTIAL IN SHORING UP SOUTHERN SUPPORT A STRIKING NUMBER OF LIBERALS INCLUDING SENATORS PAUL WELLSTONE OF MINNESOTA AND CAROL MOSELEY BRAUN OF ILLINOIS OPPOSED THE MEASURE AN ADMINISTRATION OFFICIAL SAID LATER THAT NO TIMETABLE HAS BEEN SET FOR A DECISION BY MR. CLINTON WHOSE RECORD OF AVOIDING THE DRAFT IN THE WAR MAKES VIETNAM AN AWKWARD ISSUE FOR HIM THERE WAS SOME BITTERNESS AMONG PROPONENTS THAT THE WHITE HOUSE POLITICAL APPARATUS REMAINED NEUTRAL DURING THE DEBATE LEFT TO CARRY THE FIGHT IN SUPPORT OF THE RESOLUTION WAS MASSACHUSETTS SENATOR JOHN KERRY A VIETNAM VETERAN WHO HAS LED HIS PARTY IN THE OFTEN TORTUOUS DEBATE OVER THE THOUSANDS OF AMERICANS STILL MISSING IN THE WAR LIKE SENATOR MCCAIN'S MR. KERRY'S COMBAT RECORD HELPED HIM WITHSTAND ATTACKS BY VETERANS ORGANIZATIONS AND BOTH ARGUED THAT TRADE WOULD MAKE IT EASIER FOR AMERICANS TO MOVE ABOUT IN VIETNAM AND WORK WITH HANOI ON THE MISSING THIS ARGUMENT IS CRITICAL TO THE WHITE HOUSE AND THOUGH VIETNAM IS CREDITED WITH COOPERATING DURING THE PAST YEAR THE PRESIDENT'S MAIN STANDARD IS STILL WHETHER LIFTING THE EMBARGO WILL HELP IN GATHERING MORE DATA ON THE MISSING TO PRESERVE SOME LEVERAGE THE RESOLUTION STOPS SHORT OF URGING NORMALIZATION OR TRADE CONCESSIONS ENJOYED BY NEIGHBORS OF VIETNAM IT ALSO DRAWS A LINK BETWEEN IMPROVED RELATIONS AND VIETNAM'S SUCCESS IN IMPROVING ITS HUMAN RIGHTS RECORD PARAMOUNT COMMUNICATIONS INCORPORATED SAID BOTH VIACOM INCORPORATED AND Q. V. C. NETWORK INCORPORATED AGREED TO ABIDE BY TUESDAY'S DEADLINE TO SUBMIT THEIR BEST AND FINAL TAKEOVER BIDS FOR PARAMOUNT IN TALKS WITH TAKEOVER STOCK TRADERS THIS WEEK VIACOM ADVISERS INDICATED THAT UNLESS BOTH BIDDERS AGREED TO HONOR THE DEADLINE VIACOM BELIEVED IT WOULD HAVE BEEN FREE TO EXTEND THE BIDDING BEYOND THE FIVE P. M. FEBRUARY FIRST CUTOFF PARAMOUNT SAID IT WANTS TO CONCLUDE THE PROLONGED CONTEST WHICH HAS ALREADY DRAGGED INTO ITS FIFTH MONTH QUOTE IN A TIMELY MANNER QUOTE VIACOM'S ROUGHLY NINE POINT EIGHT BILLION DOLLAR OFFER FOR PARAMOUNT TRAILS THE CURRENT MARKET VALUE OF Q. V. C.'S BID WORTH ABOUT TEN POINT TWO BILLION DOLLARS BUT THE PARAMOUNT BOARD HAS ENDORSED VIACOM'S BID BECAUSE IT CONTAINS MORE CASH AND A SECURITY OFFERING SOME EXTRA VALUE IF VIACOM'S STOCK PRICE DOESN'T APPRECIATE BOTH VIACOM AND Q. V. C. HAVE MADE CASH AND STOCK BIDS TRADING IN THE SHARES OF BANCO ESPANOL DE CREDITO SUSPENDED DECEMBER TWENTY EIGHTH AFTER THE BANK OF SPAIN OUSTED ITS CHAIRMAN AND BOARD WILL RESUME TUESDAY WITH NO LIMIT ON HOW MUCH IT CAN FALL SOME ANALYSTS AND DEALERS SAID BANESTO SHARES COULD PLUMMET BETWEEN SIXTY PERCENT AND SEVENTY FIVE PERCENT WHEN TRADING RESUMES THE BANK'S STOCK STOOD AT ONE THOUSAND NINE HUNDRED NINETY FIVE PESETAS FOURTEEN DOLLARS AND ELEVEN CENTS WHEN TRADING WAS SUSPENDED SPANISH STOCKS AREN'T ALLOWED TO FALL MORE THAN FIFTEEN PERCENT A DAY BUT THAT RULE HAS BEEN WAIVED FOR BANESTO IN A WRITTEN STATEMENT TO THE NATIONAL STOCK MARKET COMMISSION ANNOUNCING THE DECISION BANESTO CHAIRMAN ALFREDO SAENZ ALSO OUTLINED THE GENERAL RESCUE PLAN THAT SPAIN'S FIVE BIGGEST BANKS WILL BE ASKED TO SUPPORT TODAY THE BANK HOPES TO COVER THE SIX HUNDRED FIVE BILLION PESETA FOUR POINT TWO EIGHT BILLION DOLLARS HOLE IN ITS BOOKS WITH A THREE HUNDRED TWENTY BILLION PESETA WRITE DOWN OF CAPITAL AND RESERVES THAT WOULD REQUIRE REDUCING THE NOMINAL VALUE OF THE BANK'S SHARES TO LESS THAN FIVE HUNDRED PESETAS FROM SEVEN HUNDRED PESETAS EACH SPAIN'S BANKING SYSTEM THE STATEMENT SAID WILL BE ASKED TO PROVIDE BANESTO WITH TWO HUNDRED EIGHTY FIVE BILLION PESETAS THROUGH ACQUISITION OF ASSETS BANKERS NOTED HOWEVER THAT BANESTO PROBABLY WILL NEED TO SELL ASSETS WORTH FAR MORE IN ORDER TO GENERATE THAT AMOUNT IN PROFIT UNLESS IT SELLS LOANS AND OTHER ASSETS WITH ZERO BOOK VALUE BECAUSE OF THE WRITE DOWN BANESTO'S CAPITAL AND RESERVES WILL BE SEVERELY DEPLETED MR. SAENZ SAID TO RECAPITALIZE THE BANK WILL NEED A CASH INJECTION OF NO MORE THAN TWO HUNDRED BILLION PESETAS AT A MEETING WITH BANESTO ON TUESDAY THE CHAIRMEN OF THE FIVE BIG BANKS REPORTEDLY REJECTED A PRELIMINARY VERSION OF THE RESCUE PLAN BECAUSE IT ASKED THEM TO ASSUME MOST OF THE BURDEN FOR BANESTO'S BAILOUT MR. SAENZ APPEARS TO HAVE MADE AN OVERTURE TO THE BANKS BY OFFERING TO REDUCE THE NOMINAL VALUE OF THE SHARES BY MORE THAN THE TWO HUNDRED PESETAS THAT MOST ANALYSTS HAD EXPECTED MANUEL MARTIN THE EXECUTIVE IN CHARGE OF ECONOMIC ANALYSIS AT BANCO POPULAR THE SMALLEST AND MOST PROFITABLE OF SPAIN'S BIG BANKS SAID THAT FRESH CAPITAL IS LIKELY TO BE CHANNELED INTO BANESTO THROUGH THE DEPOSIT GUARANTEE FUND WHICH WILL BE FINANCED THROUGH A COMBINATION OF BANK LOANS AND CONTRIBUTIONS THE FEE BANKS CURRENTLY PAY TO THE FUND PROBABLY WILL BE RAISED AGAIN THIS YEAR AFTER HAVING BEEN CUT IN NINETEEN NINETY THREE IN THE CASE OF BANCO POPULAR MR. MARTIN SAID THIS WILL MEAN AN INCREASE IN ITS ANNUAL CONTRIBUTION OF ABOUT NINE HUNDRED MILLION PESETAS TO THREE POINT FOUR BILLION PESETAS BANKS ALONG WITH THE CENTRAL BANK ARE LIKELY TO LEND THE REST OF THE MONEY THAT THE DEPOSIT GUARANTEE FUND REQUIRES TO REFLOAT BANESTO IN THE HOPE THAT IT MAY BE RECOVERED AT A LATER DATE MR. SAENZ SAID THE SIX HUNDRED FIVE BILLION PESETA SHORTFALL WHICH HE DESCRIBED AS A PROVISIONAL ESTIMATE CAN BE BROKEN DOWN AS FOLLOWS TWO HUNDRED EIGHTY ONE BILLION PESETAS TO COVER PROVISIONS FOR NONPERFORMING LOANS ONE HUNDRED EIGHTY FIVE BILLION PESETAS TO COVER PROVISIONS FOR CAPITAL LOSSES ON ITS INVESTMENT PORTFOLIO SEVENTY SEVEN BILLION PESETAS TO COVER PROVISIONS FOR PENSION FUNDS FORTY TWO BILLION FOR OTHER ADJUSTMENTS ON ITS BALANCE SHEET AND A WRITE OFF OF TWENTY BILLION PESETAS TO COVER NINETEEN NINETY THREE LOSSES THE PROPOSED PLAN WAS FILED WITH THE COMMISSION IN ORDER TO HELP SHAREHOLDERS ASSESS WHAT MIGHT HAPPEN WHEN TRADING IN BANESTO'S SHARES RESUMES ON FEB ONE MORE THAN JUST SHAREHOLDERS WILL BE TRIPPED UP BY THE SEIZURE OF BANESTO U. S. CENTRAL CREDIT UNION HAD DEPOSITED TWO HUNDRED FIFTY FIVE MILLION DOLLARS IN BANESTO THE U. S. HOUSE BANKING COMMITTEE SAID WEDNESDAY THE DEPOSITS OF U. S. CENTRAL WHICH HANDLES INVESTMENT AND SERVICES FOR AMERICA'S THIRTEEN THOUSAND CREDIT UNIONS WEREN'T INSURED HOWEVER THE CENTRAL BANK OF SPAIN SAYS IT INTENDS TO GUARANTEE ALL FOREIGN AND DOMESTIC DEPOSITS IN BANESTO THE BANKING PANEL'S DISCOVERY THAT U. S. CENTRAL BASED IN OVERLAND PARK KANSAS WAS INVOLVED WITH BANESTO HAS SPURRED THE PANEL TO FIND OUT WHETHER OTHER BANKS HAD DEPOSITS THERE J. P. MORGAN AND COMPANY THE NEW YORK BANKING COMPANY STANDS TO LOSE A MAJOR INVESTMENT IT MADE IN BANESTO UNISYS CORPORATION SAID IT RECEIVED A CONTRACT FOR A CHECK PROCESSING SYSTEM FROM WILMINGTON TRUST COMPANY A UNIT OF WILMINGTON TRUST CORPORATION TERMS WEREN'T DISCLOSED UNISYS SAID THE CONTRACT INCLUDES HARDWARE SOFTWARE INSTALLATION AND SUPPORT SERVICES THE COMPANY SAID ITS INFOIMAGE ICPS SOFTWARE WILL PROCESS ALL PROOF OF DEPOSIT ITEMS THE COMPANY SAID THE SYSTEM WILL BE INSTALLED OVER THE NEXT SEVERAL MONTHS MONEY MARKET MUTUAL FUND ASSETS EDGED UP THREE POINT THREE SEVEN BILLION DOLLARS TO SIX HUNDRED THREE POINT SIX OH BILLION DOLLARS FROM A REVISED SIX HUNDRED POINT TWO THREE BILLION DOLLARS IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF SIX HUNDRED FIFTY ONE RETAIL MONEY MARKET MUTUAL FUNDS FELL BY TWO POINT THREE OH BILLION DOLLARS TO THREE HUNDRED NINETY NINE POINT EIGHT FOUR BILLION DOLLARS THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF FOUR HUNDRED FOUR TAXABLE MONEY MARKET FUNDS DECREASED BY ONE POINT FIVE EIGHT BILLION DOLLARS TO THREE HUNDRED NINE POINT FOUR FIVE BILLION DOLLARS ASSETS OF TWO HUNDRED FORTY SEVEN RETAIL TAX EXEMPT FUNDS FELL BY SEVEN HUNDRED TWENTY FIVE POINT SEVEN MILLION DOLLARS TO NINETY POINT FOUR OH BILLION DOLLARS ASSETS OF THE TWO HUNDRED EIGHTY INSTITUTIONAL MONEY MARKET FUNDS INCREASED BY FIVE POINT SIX EIGHT BILLION DOLLARS TO TWO HUNDRED THREE POINT SEVEN FIVE BILLION DOLLARS AMONG INSTITUTIONAL FUNDS THE ASSETS OF TWO HUNDRED TWENTY SIX TAXABLE MONEY MARKET FUNDS ROSE BY FIVE POINT SEVEN FOUR BILLION DOLLARS TO ONE HUNDRED EIGHTY ONE POINT OH SIX BILLION DOLLARS ASSETS OF FIFTY FOUR TAX EXEMPT FUNDS FELL BY SIXTY ONE POINT EIGHT MILLION DOLLARS TO TWENTY TWO POINT SIX NINE BILLION DOLLARS GENERAL TIRE INCORPORATED ANNOUNCED A PRICE INCREASE OF THREE PERCENT TO FOUR PERCENT ON ITS PRIVATE LABEL TIRES FOR THE REPLACEMENT MARKET THE MOVE BY THE UNIT OF GERMANY'S CONTINENTAL A. G. FOLLOWS SIMILAR PRICE INCREASES IN RECENT WEEKS BY RIVAL TIRE MAKERS GENERAL TIRE SAID THE INCREASE QUOTE NECESSITATED BY RISING COSTS QUOTE TAKES EFFECT APRIL FIRST AND COVERS PASSENGER LIGHT TRUCK AND FARM TIRES FOR THE MARKET THE COMPANY'S LAST PRIVATE LABEL TIRE PRICE INCREASE WAS APRIL NINETEEN NINETY TWO REGAL CINEMAS INCORPORATED SAID IT REACHED A DEFINITIVE AGREEMENT TO ACQUIRE THIRTEEN THEATERS FROM CERTAIN UNITS OF NATIONAL THEATRE HOLDINGS CORPORATION FOR ABOUT TWENTY FOUR POINT FIVE MILLION DOLLARS THE PURCHASE PRICE WILL BE PAID IN CASH AND FINANCED BY REGAL CINEMAS' AVAILABLE CASH AND CREDIT FACILITY MOST OF THE THEATERS ARE LOCATED IN METROPOLITAN CLEVELAND AKRON AND YOUNGSTOWN OHIO REGAL CINEMAS SAID IT EXPECTS TO CLOSE THE ACQUISITION IN LATE MARCH NATIONAL THEATRE HOLDINGS IS BASED IN CLEVELAND MOODY'S INVESTORS SERVICE INCORPORATED LOWERED THE LONG TERM DEBT RATING OF SCOTT PAPER COMPANY TO B. A A ONE FROM SINGLE A THREE CITING WEAKNESS IN SCOTT'S TISSUE PAPER BUSINESS ABOUT ONE POINT EIGHT BILLION DOLLARS IN DEBT IS AFFECTED THE DEBT RATING AGENCY SAID IT BELIEVED THE LONG TERM PROFITABILITY OF THE WORLDWIDE TISSUE BUSINESS WILL BE SUBSTANTIALLY REDUCED MAKING SCOTT'S EARNINGS IN THAT SEGMENT MORE VOLATILE MOODY'S SAID THE PREVIOUS HIGH LEVEL AND STABLE PROFITABILITY OF THE TISSUE BUSINESS HAD BEEN A KEY ELEMENT OF SCOTT'S DEBT RATING SCOTT WHICH IS BASED IN PHILADELPHIA AND ALSO SELLS CLEANING PRODUCTS AND PRINTING PAPERS TOOK A THREE HUNDRED EIGHTY ONE MILLION DOLLAR CHARGE FOR THE FOURTH QUARTER ON WEDNESDAY AS PART OF A SWEEPING EFFORT TO CUT COSTS QUOTE WE DON'T SHARE MOODY'S POINT OF VIEW THAT THE LONG TERM PROFITABILITY OF TISSUE WILL BE SUBSTANTIALLY REDUCED QUOTE A SCOTT SPOKESMAN SAID ALSO THIS ACTION COMES AT A TIME WHEN WE'VE JUST PUT THE PIECES TOGETHER TO BEGIN SHOWING IMPROVEMENT INTEL CORPORATION KEEPING UP THE PRESSURE ON RIVAL CHIP MAKERS PROMISED TO SHIP ITS NEXT GENERATION MICROPROCESSOR IN NINETEEN NINETY FIVE AND SAID IT WILL BOOST SPENDING ON NEW FACTORY CAPACITY THIS YEAR BY TWENTY SIX PERCENT TO TWO POINT FOUR BILLION DOLLARS ANDREW GROVE INTEL'S CHIEF EXECUTIVE OFFICER SAID AT A MEETING WITH SECURITIES ANALYSTS IN NEW YORK THAT THE SANTA CLARA CALIFORNIA COMPANY WILL DEMONSTRATE THE NEW CHIP CODE NAMED P. SIX ON PERSONAL COMPUTERS BY THIS TIME NEXT YEAR AND BEGIN VOLUME SHIPMENTS BY THE FOURTH QUARTER OF NINETEEN NINETY FIVE QUOTE THIS IS MORE AGGRESSIVE THAN I WOULD HAVE ASSUMED QUOTE SAID RAJIV CHAUDHRI AN ANALYST AT GOLDMAN SACHS AND COMPANY IF THERE IS ONE WORD TO SUMMARIZE THIS MEETING IT IS AGGRESSIVE INTEL DOES NOT PLAN TO REST ON ITS LAURELS INTEL'S CURRENT FLAGSHIP THE PENTIUM WAS INTRODUCED LAST SPRING ABOUT FOUR YEARS AFTER ITS FOUR EIGHT SIX CHIP MR. GROVE'S REMARKS ABOUT P. SIX WOULD INDICATE INTEL HAS CUT ITS DEVELOPMENT TIME ROUGHLY IN HALF THOUGH HE DID NOT QUANTIFY SHIPMENTS A COMPANY SPOKESMAN SAID INTEL USES THE WORD VOLUME TO SUGGEST HUNDREDS OF THOUSANDS OF CHIPS INTEL'S PRONOUNCEMENTS COME AS THE COMPANY FACES INCREASED COMPETITION FROM POWERPC A NEW CHIP BACKED BY INTERNATIONAL BUSINESS MACHINES CORPORATION MOTOROLA INCORPORATED AND APPLE COMPUTER INCORPORATED AS WELL AS OTHERS THAT CLONE INTEL'S MICROPROCESSOR DESIGN THE SNEAK PEAK AT P. SIX SERVES TO REASSURE POTENTIAL PENTIUM CUSTOMERS THAT INTEL'S CHIP ARCHITECTURE GIVES THEM A PATH TO EVEN GREATER POWER THERE IS NO COINCIDENCE THAT THEY ARE DOING THIS JUST AS PENTIUM IS GAINING SOME MOMENTUM SAID MICHAEL SLATER PUBLISHER OF MICROPROCESSOR REPORT A NEWSLETTER IN SEBASTOPOL CALIFORNIA MR. GROVE SAID HE EXPECTS PENTIUM TO ACCOUNT FOR FIFTEEN PERCENT OF THE P. C. BUSINESS IN NINETEEN NINETY FOUR HE DID NOT GIVE A MORE DETAILED ESTIMATE BUT MR. CHAUDHRI PREDICTS PENTIUM SHIPMENTS AT BETWEEN SIX POINT FIVE MILLION TO TEN MILLION UNITS INTEL'S TWENTY SIX PERCENT JUMP IN CAPITAL SPENDING GROWTH IS OFF FROM ITS PACE THIS YEAR WHEN SPENDING GREW FIFTY EIGHT PERCENT TO ONE POINT NINE BILLION DOLLARS YET AT TWO POINT FOUR BILLION DOLLARS INTEL IS SPENDING MORE THAN ITS FOUR LARGEST COMPETITORS COMBINED NEWER FACTORIES ALLOW INTEL TO CRAM INCREASING NUMBERS OF TRANSISTORS ON EACH CHIP AND SHRINK CHIP SIZES ON THE NASDAQ STOCK MARKET INTEL SHARES CLOSED AT SIXTY FOUR DOLLARS AND TWENTY FIVE CENTS UP SIXTY TWO POINT FIVE CENTS SEVERAL AUTO MAKERS SAID THEY PLAN OVERTIME THIS WEEKEND AT U. S. ASSEMBLY PLANTS IN PART TO MAKE UP PRODUCTION SHORTFALLS LAST WEEK AUTOMOTIVE NEWS A TRADE PUBLICATION ESTIMATES THAT THE U. S. DOMESTIC AUTO MAKERS PRODUCED FORTY SEVEN THOUSAND SEVEN HUNDRED EIGHTY FIVE FEWER CARS AND TRUCKS LAST WEEK THAN PLANNED BECAUSE OF PLANT CLOSURES AS A RESULT OF SEVERE WEATHER CONDITIONS FORD MOTOR COMPANY WAS THE HARDEST HIT OF THE AUTO MAKERS WITH FIFTEEN ASSEMBLY PLANTS CLOSED BECAUSE OF THE BAD WEATHER ALTOGETHER THE DOMESTIC AUTO MAKERS SAID THEY PLAN TO BUILD TWO HUNDRED FIFTY EIGHT THOUSAND SIX HUNDRED FORTY CARS AND TRUCKS THIS WEEK UP THIRTY EIGHT PERCENT FROM THE ONE HUNDRED EIGHTY EIGHT THOUSAND SEVENTY SIX VEHICLES BUILT IN THE SAME WEEK A YEAR EARLIER CORPORATE WARFARE IS DAWNING IN MEXICO ALTHOUGH THE MEXICAN BUSINESS LANDSCAPE IS KNOWN MORE FOR ITS MONOPOLIES THAN FOR ITS COMPETITION NOT LONG FROM NOW TWO OF MEXICO'S CORPORATE TITANS ARE LIKELY TO DO BATTLE FOR BANKING AND TELEPHONE CLIENTS ON ONE SIDE IS CARLOS SLIM HELU THE PROPRIETOR OF TELEPHONE MONOPOLY TELEFONOS DE MEXICO WHO WAS ALSO AWARDED A BANKING LICENSE LAST FALL ON THE OTHER IS ROBERTO HERNANDEZ CHIEF EXECUTIVE OFFICER AT GRUPO FINANCIERO BANAMEX ACCIVAL KNOWN AS BANACCI HE PLANS TO LAUNCH A LONG DISTANCE NETWORK HERE WITH M. C. I. COMMUNICATIONS CORPORATION IN LATE NINETEEN NINETY SIX ASSUMING THE GOVERNMENT AWARDS THE VENTURE A LICENSE WITH TWO SUCH BIG NAMES GOING AFTER EACH OTHER ON THE TWO DIFFERENT FRONTS OF TELEPHONES AND BANKS THE M. C. I. BANACCI ANNOUNCEMENT MARKS MEXICO'S MOVE INTO COMPETITIVE CAPITALISM EXECUTIVES SAY THEY SAY THIS COULD BE THE YEAR OF THE JOINT VENTURE IN MEXICO AS COMPANIES TEAM UP WITH TECHNOLOGICALLY PROFICIENT PARTNERS TO STEAL MARKET SHARE AND PROFITS FROM COMPETITORS QUOTE WE WILL SEE DRAMATIC CHANGES IN THE CONFIGURATIONS OF MAJOR CONGLOMERATES IN MEXICO QUOTE AS COMPANIES STREAMLINE BUSINESSES AND TEAM UP WITH FOREIGN PARTNERS PREDICTS MANUEL PENA MORROS HEAD OF CHASE MANHATTAN BANK'S OFFICE HERE CHASE ITSELF HE SAYS IS LOOKING FOR BOTH U. S. AND EUROPEAN PARTNERS FOR SEVERAL MEXICAN COMPANIES MEXICO IS COMING INTO A NEW ERA OF MORE COMPETITION ADDS CARRIE SCHLOSS CO MANAGER OF THE KEMPER INTERNATIONAL FUND THE LOOMING BATTLE BETWEEN MESSRS HERNANDEZ AND SLIM IS PARTICULARLY INTRIGUING BECAUSE BOTH MEN HAVE THEIR EYES ON THE POTENTIALLY HUGE MARKET FOR ELECTRONIC BANKING IN MEXICO FINANCIAL SERVICES EVERYTHING FROM MORTGAGE LENDING TO PENSION FUNDS ARE IN AN INFANTILE STAGE HERE YEARS OF HYPERINFLATION AND DEVALUATION DESTROYED THE CONCEPT OF SAVING MONEY IN A BANK MEXICO IS STILL VERY MUCH A CASH ECONOMY OPENING BANK ACCOUNTS AND ORGANIZING A DIRECT DEPOSIT SYSTEM FOR EMPLOYEES CAN BE A HUGE CHORE FOR COMPANIES HERE BANKERS SAY EVEN THOUGH CASH CARDS ARE AVAILABLE MANY MEXICANS STILL STAND IN LINE AT TELLER WINDOWS BOTH MESSRS SLIM AND HERNANDEZ APPEAR TO BE AIMING TO OFFER CORPORATIONS THE CONVENIENCE OF ONE STOP SHOPPING FOR BOTH TELECOMMUNICATIONS AND CREDIT SERVICES FOR EXAMPLE BANAMEX THE NAME OF BANACCI'S BIG BANK COULD OFFER A CORPORATION A DATA HIGHWAY TO SHIP PHONE MESSAGES OR FINANCIAL AND CORPORATE INFORMATION AROUND THE COUNTRY EMPLOYEES COULD HAVE ELECTRONIC ACCOUNTS WHERE THEY RECEIVE THEIR CHECKS AND PAY THEIR BILLS JORGE HIERRO A BANACCI VICE PRESIDENT SAYS WE WANT TO MOVE FROM A CASH ECONOMY TO AN ELECTRONIC ECONOMY SKIPPING CHECKS OR THE PAPER STAGE THE CAREERS OF MESSRS SLIM AND HERNANDEZ HAVE CROSSED IN WAYS THAT MAKE THEIR NEW RIVALRY INTERESTING BOTH MEN HAVE APPEARED ON FORBES MAGAZINE'S LIST OF MEXICAN BILLIONAIRES BOTH HAVE EASY ACCESS TO MEXICO'S POLITICAL LEADERS AND CORPORATE CHIEFTAINS AND IN NINETEEN NINETY THEY FACED OFF IN A BIDDING CONTEST FOR THE GRAND PRIZE OF MEXICO'S PRIVATIZATIONS TELEFONOS DE MEXICO MR. SLIM WON A YEAR LATER MR. HERNANDEZ LAUNCHED A WINNING THREE POINT TWO BILLION DOLLAR BID FOR BANCO NACIONAL DE MEXICO MEXICO'S LARGEST BANKING GROUP BOTH TELMEX AND BANAMEX CAME WITH THEIR PROBLEMS BUT MR. SLIM WON A MONOPOLY CONCESSION FROM THE GOVERNMENT PROTECTING HIS INVESTMENT FOR SEVEN YEARS FROM COMPETITION GIVING HIM TIME TO REBUILD THE INEFFICIENT PHONE GIANT MR. HERNANDEZ HAD HIS OWN RESTRUCTURING TO DO HE PAID A HEFTY TWO POINT SIX TWO TIMES BOOK VALUE FOR A BANK THAT HAD MILLIONS OF DOLLARS IN LOANS THAT WERE DEAD BODIES AS ONE BANACCI OFFICIAL CALLS THEM AT THE END OF NINETEEN NINETY TWO BANAMEX FOUND THAT SIX POINT ONE PERCENT OF ALL LOANS ON THEIR BOOKS WERE PAST DUE UNLIKE MR. SLIM THOUGH MR. HERNANDEZ HAD TO COMPETE WITH MORE THAN A DOZEN OTHER MEXICAN BANKS WHILE REORGANIZING AND NOW FACES A BUNCH OF FOREIGN BANKS DUE TO ARRIVE HERE AROUND MIDYEAR THEN LAST FALL WHEN MEXICAN BANKERS WERE COMPLAINING THE LOUDEST ABOUT THE ONSLAUGHT OF COMPETITION THE GOVERNMENT STUNNED THEM ALL BY AWARDING A BANKING LICENSE TO MR. SLIM THE IMPLICATIONS WERE HUGE THROUGH TELMEX MR. SLIM HAS A VIRTUAL CREDIT PROFILE ON EVERY MEXICAN WITH A PHONE HE KNOWS EXACTLY WHO SPENDS MONEY IN MEXICO BECAUSE PEOPLE SPEND MONEY ON PHONE BILLS MORE REGULARLY THAN THEY SPEND ON ANYTHING ELSE SAYS PABLO MANCERA TREASURER OF INVESTMENT FIRM GRUPO SANTANDER MEXICO FERNANDO CHICO PARDO THE HEAD OF GRUPO FINANCIERO INBURSA THE INCUBATOR FOR MR. SLIM'S BANKING FORAY DIDN'T RETURN PHONE CALLS INQUIRING ABOUT HIS PLANS BUT EVERY MEXICAN BANKER FEARS SOME COMBINATION OF TELMEX AND FINANCIAL SERVICES IS IN THE WORKS IT WOULD BE SILLY NOT TO USE TELMEX IN THIS VENTURE SLIM IS DEVELOPING A BANK FOR THE NEXT CENTURY QUOTE SAYS SERGIO SANCHEZ GARCIA HEAD OF RESEARCH AT MEXICAN BROKER INVERLAT UNTIL THIS WEEK MR. SLIM WAS POTENTIALLY BANACCI'S MOST THREATENING COMPETITOR NEWSPAPERS HERE ARE FULL OF RUMORS THAT TELMEX WILL SOON SEAL A LONG DISTANCE JOINT VENTURE WITH AMERICAN TELEPHONE AND TELEGRAPH COMPANY BUT FOR NOW BANACCI HAS THE LARGEST BANK IN MEXICO AND ALSO HAS AS A PARTNER M. C. I. WHICH HAS MADE A FORTUNE POACHING ON TROUBLED MONOPOLIES LIKE TELMEX MR. SLIM HAS A SMALL BROKERAGE FIRM A PIECE OF PAPER THAT SAYS HE CAN OPERATE AS A BANK MR. PARDO AND TELMEX HERNANDEZ HAS ALWAYS HAD THE GUSANO OR WORM EATING AT HIM ABOUT LOSING TELMEX ONE U. S. BANKER OPINES HERNANDEZ IS AFTER SLIM NOW PAUL D. GILMORE FORTY SIX YEARS OLD WAS NAMED PRESIDENT OF THE DELAWARE AND HUDSON RAILWAY UNIT OF THIS TRANSPORTATION NATURAL RESOURCES AND MANUFACTURING CONCERN A NEW POSITION MR. GILMORE WAS MOST RECENTLY VICE PRESIDENT OF MARKETING AND SALES INTERMODAL FREIGHT SYSTEMS FOR THE COMPANY'S C. P. RAIL SYSTEM DIVISION NEWS CORPORATION SAID ITS T. V. GUIDE PLANS TO ENTER THE MARKET FOR MONTHLY CABLE TELEVISION GUIDES PREPARED IN PARTNERSHIP WITH CABLE T. V. SYSTEMS AROUND THE COUNTRY NEWS CORPORATION'S BRIEF STATEMENT DIDN'T PROVIDE DETAILS A SPOKESWOMAN FOR T. V. GUIDE SAID THE COMPANY DOESN'T HAVE A SPECIFIC LAUNCH DATE YET AND HASN'T COMPLETED AN AGREEMENT WITH ANY CABLE SYSTEM OPERATORS THE BUSINESS T. V. GUIDE PROPOSES TO ENTER INVOLVES PARTNERSHIP ARRANGEMENTS WITH CABLE SYSTEMS TO PREPARE GUIDES THAT ARE AUTOMATICALLY SENT TO LOCAL SUBSCRIBERS THAT BUSINESS IS CURRENTLY DOMINATED BY T. V. S. M. INCORPORATED OF HORSHAM PENNSYLVANIA IN WHICH MANY MAJOR CABLE OPERATORS HAVE BOUGHT STAKES IN RECENT YEARS LAST FALL THERE WERE REPORTS THAT NEWS CORPORATION AND CLOSELY HELD T. V. S. M. WERE IN MERGER TALKS BUT BOTH COMPANIES DENIED THOSE REPORTS T. V. GUIDE'S SUBSCRIBER BASE HAS DWINDLED IN RECENT YEARS TO ABOUT FIFTEEN MILLION AND THE MAGAZINE HAS BEGUN A NUMBER OF STRATEGIES TO REMAIN A LEADER IN PROVIDING TELEVISION SCHEDULE INFORMATION AMONG OTHER THINGS THE COMPANY IS WORKING ON AN ELECTRONIC VERSION OF ITS SCHEDULES CURRENTLY T. V. GUIDE PROVIDES SPECIAL QUOTE CABLE SPECIFIC QUOTE EDITIONS OF ITS MAGAZINE IN TEN CITIES INCLUDING NEW YORK THESE EDITIONS INDICATE NOT ONLY THAT A PROGRAM WILL APPEAR ON SAY H. B. O. BUT ALSO GIVE THE LOCAL CHANNEL ON WHICH H. B. O. AIRS IN THAT MARKET POLAND TURNED AWAY SOME GLOBAL MEDIA GIANTS AND AWARDED ITS FIRST PRIVATE SECTOR NATIONAL T. V. NETWORK LICENSE TO A POLISH VENTURE THE NATIONAL RADIO AND TELEVISION COUNCIL GAVE THE NOD TO POLSAT A SMALL POLISH SATELLITE T. V. OPERATOR OVER NINE COMPETING BIDS FROM GROUPS BACKED BY SUCH COMPANIES AS TIME WARNER INCORPORATED BERTELSMANN A. G. AND CAPITAL CITIES SLASH A. B. C. INCORPORATED FOR THE TIME BEING THE AWARD SETTLES CONCERNS THAT POLAND'S AIR WAVES COULD BE TOO STRONGLY INFLUENCED BY FOREIGN PROGRAMMING POLAND'S NINETEEN NINETY TWO BROADCAST MEDIA LAW ALLOWS UP TO THIRTY THREE PERCENT FOREIGN OWNERSHIP OF A T. V. VENTURE HOWEVER THERE IS A POSSIBILITY THAT POLSAT COULD SEEK SO MUCH FOREIGN HELP THAT THEY TOO COULD BE CONSIDERED LESS THAN A TRUE POLISH ENTERPRISE THAT'S BECAUSE THE NEW NETWORK IS EXPECTED TO REQUIRE AN INITIAL INVESTMENT OF UP TO ONE HUNDRED MILLION DOLLARS FOR EQUIPMENT AND PROGRAMMING A SPOKESMAN FOR POLSAT SAID YESTERDAY THAT THE ENTERPRISE PLANS TO RAISE ABOUT TWENTY MILLION DOLLARS IN A PRIVATE STOCK PLACEMENT IN THE COMING MONTHS NOBODY REALLY KNOWS WHEN THE LAW BUSINESS WILL EMERGE FROM THE DOLDRUMS BUT THERE IS ONE INDICATOR THAT SEEMS TO BE POINTING TOWARD A STRONG RECOVERY IN NINETEEN NINETY FOUR WE'LL CALL IT THE LAWYERS' TRAVEL INDEX A TRAVEL AGENCY THAT SPECIALIZES IN LAWYERS' BUSINESS TRIPS REPORTS THAT IT HAS TALLIED THE NUMBER OF SUCH TRIPS TAKEN LAST YEAR BY ATTORNEYS AT ABOUT ONE HUNDRED FIRMS AND COMPARED THE TOTAL WITH THAT FROM THE PREVIOUS YEAR THE AGENCY'S FINDINGS LAWYERS' BUSINESS TRAVEL SOARED SEVENTEEN PERCENT LAST YEAR THE FIRST TIME IT HAS RISEN AT ALL SINCE THE NINETEEN EIGHTIES MEASURING FUTURE LEGAL BILLINGS BASED ON CURRENT BUSINESS TRAVEL IS AKIN TO PREDICTING CHRISTMAS SALES BASED ON PURCHASES OF WRAPPING PAPER THOUGH A ROUGH GAUGE IT BEATS GUESSING AND SEEMS MORE RELIABLE THAN COUNTING ON THE ROSY PROJECTIONS OFFERED MOST YEARS BY LAW FIRM MANAGERS LEGAL BUSINESS TRIPS AFTER ALL TRANSLATE DIRECTLY INTO FEES FOR LAW FIRMS NOT ONLY DO LAWYERS CHARGE CLIENTS FOR THE WORK PERFORMED ON THEIR BEHALF BUT ALSO TYPICALLY FOR ALL OF THE TRAVEL COSTS SINCE THE TRAVEL OCCURS MONTHS BEFORE THE BILLS ARE PAID AND GET REFLECTED IN A FIRM'S REVENUE THE TRAVEL INDEX MAY PROVIDE THE EARLIEST SIGN THAT LEGAL WORK IS PICKING UP MANY LEGAL CONSULTANTS AND OTHER INDUSTRY WATCHERS CONTINUE TO STAND BY GRIM PREDICTIONS THAT LAW FIRMS WILL HAVE TO SHRINK AS MUCH AS THIRTY PERCENT IN COMING YEARS MEANWHILE LAWYERS HAVE HAD TO SIT ON THE SIDELINES WHILE POSITIVE REPORTS ROLLED IN FROM OTHER ECONOMIC SECTORS INDEXES OF CONSUMER SPENDING HOME BUILDING AND FACTORY PRODUCTION ARE UP PAUL METSELAAR PRESIDENT OF THE LAWYERS' TRAVEL SERVICE BASED IN NEW YORK SAYS HIS COMPANY'S NATIONWIDE NUMBERS ARE THE FIRST DRUMBEAT OF A COMING BOOM IN THE PROFESSION QUOTE CLEARLY WHAT'S HAPPENING IS THAT LAW FIRMS ARE ABOUT TO START GETTING A LOT BUSIER FOR THE FIRST TIME IN SEVERAL YEARS QUOTE HE SAYS MR. METSELAAR SEES A SURGE IN BILLABLE HOURS ESPECIALLY AT LAW FIRMS WITH INTERNATIONAL PRACTICES BASED ON HIS INFORMATION THAT OVERSEAS TRAVEL IS WAY UP AMERICAN LAWYERS ARE GOING MUCH MORE FREQUENTLY TO LATIN AMERICA EUROPE AND THE FAR EAST THAT'S REALLY WHERE THE PLAYING FIELD IS GOING TO BE IN THE NINETIES THE COMPANY WHICH BOOKS FLIGHT HOTEL AND RELATED ARRANGEMENTS FOR HALF OF THE COUNTRY'S THIRTY LARGEST LAW FIRMS AND A HOST OF OTHERS ALSO GATHERED DATA ON LAW FIRMS' RECRUITING PATTERNS MOST LAW FIRMS REQUEST THAT LAWYERS' TRAVEL KEEP TRACK OF RECRUITING TRIPS SEPARATELY FROM OTHER BUSINESS TRIPS MR. METSALAAR SAYS BECAUSE TRAVEL ON BEHALF OF THE FIRM CAN'T BE BILLED TO CLIENTS HERE TOO THE LAWYERS' TRAVEL INDEX HINTS OF HAPPIER DAYS BOTH FOR FIRMS THEMSELVES AND THEIR PROSPECTIVE EMPLOYEES RECRUITING TRIPS LAST YEAR WERE UP THIRTY FOUR PERCENT NATIONWIDE FROM THE PRIOR YEAR MR. METSALAAR SAYS LAWYERS' TRAVEL REPORTS THAT ITS OVERALL SALES FOR RECRUITING RELATED TRIPS IN NINETEEN NINETY THREE WERE UP FORTY PERCENT OVER THE YEAR BEFORE THAT SUGGESTS FIRMS ARE SEEKING TO BUILD UP THEIR RANKS AGAIN AFTER YEARS OF DOWNSIZING AND LAYOFFS LAWYERS IN PRACTICE AREAS THAT HAD BEEN BASICALLY DEAD FOR THE PAST THREE YEARS SUCH AS REAL ESTATE ARE ON THE PROWL AGAIN MR. METSALAAR SAYS ADDITIONALLY WITH MERGERS AND ACQUISITIONS WORK COMING BACK TO LIFE LAWYERS ARE AGAIN FLYING AROUND THE COUNTRY LOOKING TO CLINCH DEALS THE TRAVEL EXECUTIVE ISN'T QUITE SURE WHAT TO MAKE OF A THIRD INDICATOR LAWYERS' VACATION TRIPS ALSO ARE UP SUBSTANTIALLY ABOUT FIFTEEN PERCENT OVER THE PAST YEAR LAWYERS ARE CLEARLY STARTING TO SPEND MORE MONEY ON THEMSELVES MR. METSALAAR SAYS MAYBE IT INDICATES PARTNERS ARE STARTING TO INCREASE THEIR INCOME DRAWS OR MAYBE ASSOCIATES ARE FEELING MORE CONFIDENT BUT THEN AGAIN YOU'D THINK IF THEY WERE BUSIER THEY WOULD HAVE LESS TIME FOR VACATIONS THEN AGAIN MAYBE IF THEY WEREN'T SO BUSY THE VACATION NUMBERS WOULD BE HIGHER QUOTE THE LAWYERS' TRAVEL INDEX ALSO MAKES REGIONAL CALCULATIONS LAW FIRM FINANCES IT SEEMS ARE LIKELY TO START LOOKING BETTER SOONER IN THE NORTHEAST THAN IN SOUTHERN CALIFORNIA LAST YEAR LAWYERS' BUSINESS TRIPS WERE UP EIGHTEEN PERCENT FOR LAWYERS BASED IN NEW YORK AND UP NINETEEN PERCENT FOR WASHINGTON FIRMS AND DOWN TEN PERCENT FOR LOS ANGELES OPERATIONS ATTORNEYS AT TEN OF NEW YORK'S TWENTY FIVE LARGEST FIRMS TOOK SEVEN THOUSAND ONE HUNDRED NINETY ONE BUSINESS TRIPS IN THE SECOND HALF OF LAST YEAR UP FROM FIVE THOUSAND EIGHT HUNDRED SEVENTY EIGHT DURING THE SAME PERIOD IN THE PREVIOUS YEAR ACCORDING TO THE INDEX IN GENERAL THE INDEX SHOWS THAT NEW YORK LITIGATORS ARE A PERIPATETIC LOT TAKING AN AVERAGE OF EIGHTEEN BUSINESS TRIPS A YEAR HOW FAR THEY ARE GOING THOUGH ISN'T CLEAR THE TRAVEL SERVICE DIDN'T SUPPLY AN AVERAGE MILES PER LAWYER ESTIMATE WARD BOWER A PRINCIPAL AT THE LEGAL CONSULTING FIRM ALTMAN WEIL PENSA INCORPORATED SAYS THE REGIONAL TRAVEL PATTERNS TRACK HIS SENSE BASED ON ANECDOTAL EVIDENCE THAT THE LEGAL BUSINESS IS RECOVERING IN THE NORTHEAST WHILE STILL STRUGGLING IN CALIFORNIA WHEN HE PUTS A WET FINGER TO THE ECONOMIC WINDS MR. BOWER SENSES OPTIMISM IN THE LEGAL BUSINESS AS A WHOLE QUITE A FEW FIRMS HAD A BETTER YEAR THAN PROJECTED IN NINETY THREE AND VOLUME APPEARS TO BE BETTER THAN IT'S BEEN AT THIS TIME OF YEAR FOR THE PAST TWO OR THREE YEARS HE SAYS BUT MR. BOWER CAUTIONS AGAINST BETTING THE RANCH ON THE LAWYERS' TRAVEL INDEX THE TRIPS COULD BE SHORTER THAN IN THE INDULGENT EIGHTIES AND SOME CLIENTS HAVE STRUCK TOUGH DEALS WITH THEIR LAW FIRM ABOUT HOW MUCH THEY WILL REIMBURSE FOR TRAVEL EVEN IF THE PREMISE IS CORRECT HE ADDS THERE'S NO WAY TO PROVE IT YET BECAUSE OF THE LAG TIME IN CLIENT BILL PAYING PROGRAM TRADING IN THE WEEK ENDED JANUARY TWENTY FIRST ACCOUNTED FOR TWELVE POINT SIX PERCENT OR AN AVERAGE THIRTY SEVEN POINT NINE MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME THIS INCLUDED PROGRAM TRADING RELATED TO THE JANUARY TWENTY FIRST MONTHLY EXPIRATION OF STOCK INDEX OPTIONS AND FUTURES BROKERAGE FIRMS EXECUTED AN ADDITIONAL TWENTY ONE POINT EIGHT 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 FIFTEEN DIFFERENT STOCKS WITH A TOTAL VALUE OF ONE MILLION DOLLARS OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD THIRTY NINE PERCENT INVOLVED STOCK INDEX ARBITRAGE UP FROM THIRTY THREE POINT FIVE PERCENT THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCK INDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME FIFTY ONE POINT EIGHT PERCENT OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE THIRTY EIGHT POINT TWO PERCENT WAS FOR THEIR CUSTOMERS AN ADDITIONAL TEN PERCENT WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOST ACTIVE FIRMS NOMURA SECURITIES U. B. S. SECURITIES AND SUSQUEHANNA EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND SMITH BARNEY DID MOST OF THEIR TRADING FOR THEIR CUSTOMERS AMERICAN TELEPHONE AND TELEGRAPH COMPANY SAID IT REACHED TELEPHONE AND TELECOMMUNICATIONS SERVICE CONTRACTS WITH THREE MAJOR CUSTOMERS CHEVRON CORPORATION SAN FRANCISCO REACHED A FORTY TWO MILLION DOLLAR AGREEMENT FOR LONG DISTANCE SERVICES EXTENDING ITS CONTRACT THROUGH MID NINETEEN NINETY SEVEN OWENS CORNING FIBERGLAS CORPORATION TOLEDO OHIO EXTENDED FOR FOUR YEARS OR TWELVE MILLION DOLLARS A CONTRACT FOR VOICE AND DATA COMMUNICATIONS SERVICES AND BANC ONE CORPORATION COLUMBUS OHIO EXTENDED VARIOUS SERVICE AGREEMENTS WITHOUT DISCLOSING THE VALUE EQUITIES IN TOKYO SKIDDED ONE POINT THREE PERCENT THURSDAY AS JITTERS ABOUT JAPANESE POLITICAL REFORM CONTINUED LONDON SHARES DRIFTED DOWN TO END AT THE DAY'S LOWS IN UNINSPIRED DEALINGS BUT MANY OTHER ASIAN AND PACIFIC BOURSES POSTED SOLID GAINS SEVERAL IN TECHNICAL REBOUNDS FOLLOWING RECENT LOSSES WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED FIFTEEN POINT FOUR FIVE UP ONE POINT OH ONE REFLECTING HIGHER MARKETS IN ALL REGIONS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT TWO HUNDRED TWENTY POINT SIX TWO UP TWENTY ONE POINT FOUR SIX OR ELEVEN PERCENT WITH UNITED PLANTATIONS OF MALAYSIA POSTING A TWENTY FOUR PERCENT GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT ONE HUNDRED FIFTY TWO POINT FIVE TWO DOWN THREE POINT TWO OH OR TWO POINT ONE PERCENT WITH HOMESTAKE MINING OF THE U. S. SLIDING SEVEN PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH SURGED FOUR HUNDRED EIGHTY NINE POINT EIGHT FIVE POINTS WEDNESDAY SPUTTERED TWO HUNDRED FORTY SIX POINT FOUR TWO TO EIGHTEEN THOUSAND EIGHT HUNDRED NINETY ONE POINT SEVEN NINE AFTER RETREATING FROM THE DAY'S HIGHS WHEN THE BIG DROPS RECORDED EARLIER THIS WEEK HAD BEEN TEMPORARILY REGAINED IN TRADING FRIDAY THE NIKKEI EASED TWENTY TWO POINT TWO OH POINTS TO CLOSE THE MORNING SESSION AT EIGHTEEN THOUSAND EIGHT HUNDRED SIXTY NINE POINT FIVE NINE THURSDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT FOUR HUNDRED THIRTY MILLION SHARES UP FROM THREE HUNDRED NINETY SIX POINT SEVEN MILLION SHARES A DAY EARLIER DECLINERS OUTNUMBERED GAINERS SIX HUNDRED SEVENTY FOUR TO THREE HUNDRED FIFTY FIVE THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH JUMPED THIRTY POINT NINE FOUR POINTS WEDNESDAY FELL THIRTEEN POINT EIGHT TWO TO ONE THOUSAND FIVE HUNDRED THIRTY SIX POINT FIVE OH INVESTORS FRETTED ABOUT SIGNS THE JAPANESE GOVERNMENT MAY FACE DIFFICULTY IN GETTING A POLITICAL REFORM BILL PASSED NEWS REPORTS AT MIDDAY INDICATED THE GOVERNMENT AND THE OPPOSITION LIBERAL DEMOCRATIC PARTY CONTINUED TO DISAGREE ON DETAILS OF A COMPROMISE THE WORK HAD BEGUN THE PREVIOUS DAY BY A JOINT COMMITTEE OF THE DIET OR PARLIAMENT AND THE MARKET'S NERVOUSNESS ABOUT THE POLITICIANS' PROGRESS LED TO AN AFTERNOON SELL OFF OF SHARES PACED BY INSTITUTIONS FOLLOWING TWO DAYS OF RUMOR DRIVEN GAINS IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX DECLINED EIGHT POINT EIGHT POINTS TO THREE THOUSAND FOUR HUNDRED TWENTY SEVEN POINT THREE THE F. T. THIRTY STOCK INDEX FELL THIRTEEN POINT NINE POINTS TO TWO THOUSAND SIX HUNDRED TWENTY SEVEN POINT THREE VOLUME WAS NINE HUNDRED SEVENTY TWO POINT SIX MILLION SHARES UP FROM EIGHT HUNDRED TWENTY NINE POINT THREE MILLION SHARES A DAY EARLIER LITTLE NEWS SURFACED TO GIVE INVESTORS A TRADING THEME AND PRICES OF MANY ISSUES MOVED AIMLESSLY MOST FUND MANAGERS WERE MARKING TIME UNTIL BRITISH CORPORATIONS BEGIN REPORTING THEIR FINANCIAL RESULTS NEXT MONTH RETAILING STOCKS WERE HIT HARD YESTERDAY ON DISAPPOINTING SALES REPORTS FOOD MAKERS FACED THE SAME FATE ON FLAT SALES INDICATIONS WHILE MANY FINANCIAL AND BANKING STOCKS FELL AS INVESTORS SWITCHED TO ISSUES THAT ARE CONSIDERED TO OFFER BETTER VALUE IN FRANKFURT STOCK PRICES CLOSED MOSTLY HIGHER AFTER A PATCHY SESSION THE D. A. X. THIRTY STOCK INDEX ADDED FIVE POINT NINE SEVEN POINTS TO TWO THOUSAND ONE HUNDRED TWENTY FIVE POINT ONE FOUR POINTS TAKING THIS WEEK'S GAIN TO TWO POINT FOUR PERCENT THOUGH THE FINISH WAS NEAR THE SESSION LOW OF THE D. A. X. ISSUES ADVANCERS LED DECLINERS ONLY SEVENTEEN TO TWELVE THE MARKET GOT QUIETER AFTER SHARP VOLATILITY EARLIER IN THE WEEK THE EQUITIES MARKET HAS BEEN MOVING IN TANDEM WITH GERMANY'S BOND MARKET RECENTLY WHICH WAS SOMEWHAT FIRMER YESTERDAY IN PARIS PRICES EASED ON DISAPPOINTMENT ABOUT FRENCH MONETARY POLICY STOCKS OPENED HIGHER HELPED BY SPECULATIVE BUYING ON A LONG SHOT BET THAT FRANCE'S CENTRAL BANK MIGHT TRIM INTEREST RATES PRIOR TO ANY REDUCTION BY GERMANY'S CENTRAL BANK BUT WHEN THE BANK OF FRANCE LEFT ITS RATES UNCHANGED PARIS STOCKS FOLLOWED THE FRENCH BOND MARKET BACK DOWN IN MILAN SHARES CLIMBED ACROSS THE BOARD AS INVESTORS PICKED UP ISSUES LEFT BEHIND IN THIS WEEK'S RALLY SUCH AS INSURERS WHICH HAD BEEN ABANDONED IN FAVOR OF CYCLICAL ISSUES TELECOMMUNICATIONS AND CEMENT STOCKS ALSO PERFORMED WELL IN MADRID PRICES ENDED NARROWLY HIGHER AFTER FALLING FROM HIGHER LEVELS ON FUTURESRELATED TRADING AND A SLIGHT TECHNICAL CORRECTION FROM THIS YEAR'S SHARP GAINS IN STOCKHOLM EQUITIES ROSE SOLIDLY AND BROADLY AS POSITIVE CORPORATE NEWS AND RUMORS ABOUT EARNINGS AND ORDERS BOOSTED BLUE CHIPS IN ZURICH EQUITIES FINISHED MIXED TO SLIGHTLY HIGHER AFTER GIVING UP GAINS AS INVESTORS TOOK PROFITS LATE IN THE DAY THE SELL OFF MAY HAVE STEMMED FROM SAGGING HOPES FOR QUICK REDUCTIONS IN EUROPEAN INTEREST RATES BUT IT WAS ALSO VIEWED POSITIVELY AS CONTAINING THE SWISS MARKET FROM OVERHEATING IN BRUSSELS STOCKS FIRMED TAKING THE BENCHMARK INDEX UP TO A RECORD PASSING THE MARK SET JANUARY NINETEENTH THE BIGGEST PRICE SWINGS WERE IN SMALLER STOCKS WHILE BLUE CHIPS WERE LITTLE CHANGED IN HEAVY TURNOVER THE MARKET SHRUGGED OFF POOR CORPORATE EARNINGS NEWS IN MEXICO CITY EQUITIES CHALKED UP THEIR SECOND RECORD HIGH THIS WEEK CLIMBING TWO PERCENT AS FOREIGN INVESTORS FOCUSED ON BUYING IN THE TELECOMMUNICATIONS SECTOR WHICH IS EXPECTED TO EXPAND RAPIDLY IN SYDNEY SHARE PRICES SURGED ONE POINT THREE PERCENT BUOYED BY A FIRMER GOLD PRICE LOWER THAN EXPECTED AUSTRALIAN INFLATION DATA AND SOME FOREIGN BUYING MANY LARGE STOCKS WHICH HAD FALLEN THIS WEEK BECAUSE OF NERVOUSNESS ABOUT TOKYO'S BIG DROPS REBOUNDED AND HELPED PUSH THE BROAD MARKET UP IN HONG KONG STOCKS CLIMBED TWO POINT ONE PERCENT IN A STRONG TECHNICAL REBOUND AMID MODERATE TURNOVER FOLLOWING TWO SESSIONS OF LOSSES THAT HAD TAKEN THE MAIN INDEX DOWN THREE POINT ONE PERCENT IN SINGAPORE EQUITIES EXTENDED THE PREVIOUS SESSION'S LATE RECOVERY RISING STEADILY TO CLOSE ONE POINT FOUR PERCENT HIGHER SENTIMENT WAS BOOSTED BY A RECOVERY IN MALAYSIAN OVER THE COUNTER SHARES WHICH HAD WEAKENED SHARPLY AND PULLED THE SINGAPORE BOURSE DOWN WITH THEM AND IN KUALA LUMPUR SHARES ALSO EXTENDED WEDNESDAY'S BRISK REBOUND IN ACTIVE TRADING SOARING FOUR POINT FOUR PERCENT AS BARGAIN HUNTING SPREAD AND BLUE CHIPS WON SUPPORT IN TAIPEI SHARES RALLIED THREE PERCENT DOWN EVEN SO FROM THE DAY'S HIGHS THE STRONG SHOWING WAS LARGELY A TECHNICAL REBOUND AS MANY INVESTORS REAPPEARED AFTER BEING SIDELINED FOR SEVERAL DAYS BY LIQUIDITY WORRIES CONFIDENCE WAS BOOSTED BY NEWS THAT THE TAIWAN GOVERNMENT MIGHT INCREASE TO TWENTY BILLION DOLLARS FROM FIVE BILLION DOLLARS THE CEILING ON FOREIGN INVESTMENT FUNDS ALLOWED TO ENTER THE COUNTRY AND BY ENTHUSIASM ABOUT TOMORROW'S LOCAL ELECTIONS IN SEOUL STOCKS CLIMBED ONE POINT FIVE PERCENT AS SENTIMENT WAS BUOYED BY NEWS REPORTS THAT THE SOUTH KOREAN FINANCE MINISTRY WON'T INITIATE STABILIZING MEASURES TO COOL THE MARKET THOUGH INSTITUTIONS MADE LATE SALES RUMORED TO BE URGED BY THE GOVERNMENT IN BANGKOK AFTER CHOPPY DEALINGS THE MARKET FINISHED WITH A TWO POINT SEVEN PERCENT GAIN IN WELLINGTON PRICES GAINED ONE POINT ONE PERCENT IN QUIET TRADING WITH INVESTORS RELUCTANT TO SELL HOLDINGS WHILE THE MARKET CONTINUES ITS BULL RUN 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END WHEN OREGON DOCTORS LEIGH DOLIN AND RICK WOPAT GO TO WORK NEXT WEEK IT WON'T BE HEALTH CARE AS USUAL FOR THEM OR FOR THEIR PATIENTS AFTER YEARS OF STATEWIDE DEBATE AND FEDERAL SCRUTINY OREGON WILL ON FEBRUARY FIRST LAUNCH A RADICAL REDESIGN OF ITS FEDERALLY FUNDED MEDICAID PROGRAM IN THE NATION'S MOST SERIOUS ATTEMPT AT HEALTH CARE RATIONING OREGON'S NEW HEALTH PLAN WILL EXTEND MEDICAID COVERAGE TO MANY WORKING POOR PEOPLE WHO HAVE UNTIL NOW BEEN UNINSURED IT WILL ALSO PHASE CURRENT MEDICAID RECIPIENTS INTO COST CONSCIOUS MANAGED CARE PLANS MOST RADICALLY OREGON WILL LIMIT ITS COVERAGE TO A PRIORITY LIST OF SIX HUNDRED SIX MEDICAL PROCEDURES STRESSING PREVENTION AND BASIC CARE AND TRIMMING WHAT THE STATE DEEMS UNNECESSARY OR FUTILE FROM COSMETIC SURGERY TO HEROIC MEASURES FOR THE TERMINALLY ILL MANY DOCTORS AND ADMINISTRATORS ARE PREPARED FOR WIDESPREAD CONFUSION TUESDAY AS SEVERAL HUNDRED THOUSAND OREGONIANS CONVERT TO THE NEW SYSTEM QUOTE IT WILL BE CHAOS QUOTE SAYS MARY LOU HENNRICH ADMINISTRATOR FOR CAREOREGON A HEALTH CARE ARM OF MULTNOMAH COUNTY GOVERNMENT WE HAVE ONE NOSTRIL ABOVE THE WATER DOCTOR DOLIN A PORTLAND BASED INTERNIST AND PRESIDENT ELECT OF THE ORGEON MEDICAL ASSOCIATION BELIEVES THAT ONCE PEOPLE GET THE HANG OF IT THEY'LL HAVE MUCH BETTER CARE THAN BEFORE BUT HE ADDS WE'RE GOING TO HAVE TO SPEND SOME TIME EDUCATING THE PATIENTS OREGON WAS RIPE FOR A NEW HEALTH CARE SYSTEM MANY OF THE STATE'S THREE MILLION RESIDENTS DEPEND ON CYCLICAL INDUSTRIES SUCH AS TIMBER AND AGRICULTURE AND FAR TOO MANY OREGONIANS FELL THROUGH THE CRACKS IN THE HEALTH CARE SYSTEM IN NINETEEN NINETY TWO ABOUT FOUR HUNDRED SEVENTY NINE THOUSAND PEOPLE OR SIXTEEN POINT ONE PERCENT OF OREGON'S POPULATION WERE UNINSURED WELL ABOVE THE NATIONAL AVERAGE OF THIRTEEN POINT NINE PERCENT NOW ABOUT ONE HUNDRED TWENTY THOUSAND OF UNINSURED OREGONIANS WHO LIVE AT THE POVERTY LEVEL WILL BECOME NEWLY ELIGIBLE FOR MEDICAID IN ADDITION ABOUT ONE HUNDRED EIGHTY THOUSAND OF THE TWO HUNDRED FIFTY THOUSAND PEOPLE ALREADY ENROLLED IN MEDICAID WILL BE EMBRACED BY THE NEW PLAN THE REMAINDER OF OREGON'S POOR AND UNINSURED WILL BE PHASED IN OVER THE NEXT FIVE YEARS ELDERLY AND DISABLED PEOPLE AND CHILDREN IN FOSTER CARE ARE SCHEDULED TO ENTER THE PLAN IN NINETEEN NINETY FIVE AN ADDITIONAL THREE HUNDRED THOUSAND OF THE WORKING POOR ARE SCHEDULED TO ENTER THE PLAN IN NINETEEN NINETY SEVEN AND NINETEEN NINETY EIGHT WHEN AN EMPLOYER BASED COVERAGE LAW KICKS IN DESPITE OREGON'S FISCAL WOES IT EXPECTS A ONE BILLION DOLLAR BUDGET SHORTFALL IN NINETEEN NINETY FIVE TO NINETY SEVEN THE STATE WAS ABLE TO FUND THE EXPANSION OF ITS MEDICAID ROLLS AND ENHANCE SERVICES LIKE ADULT DENTAL CARE BY IMPOSING CIGARETTE TAXES OF TEN CENTS A PACK IN RECENT MONTHS THE MOST EXCITING THING SAYS JEAN THORNE HEAD OF OREGON MEDICAID IS THAT WE'LL NEWLY ENTITLE ONE HUNDRED TWENTY THOUSAND PEOPLE WHO HAVEN'T HAD CARE ALSO SHE EXPECTS NEW MONTHLY CAPITATION FEES WHERE DOCTORS RECEIVE PAYMENT PER PATIENT INSTEAD OF FOR SPECIFIC SERVICES WILL OFFER STRIKING IMPROVEMENTS ON THE OLD MEDICAID REIMBURSEMENT RATES UNDER WHICH DOCTORS OFTEN COMPLAINED THEY LOST MONEY CARING FOR THE POOR OREGON'S INSISTENCE ON MANAGED CARE MEANS A PRIMARY CARE DOCTOR WILL COORDINATE CARE AND KEEP PATIENTS FROM FALLING INTO EXPENSIVE AND INEFFICIENT EMERGENCY ROOMS AS THEIR PROVIDER OF LAST RESORT PEOPLE NOW WAIT UNTIL THEY HAVE AN EARACHE AND THEN GO TO THE ER GROUSES DOCTOR DOLIN BUT UNDER THE OREGON PLAN HE EXPECTS TO DELIVER TRUE PREVENTIVE CARE AT RATES THAT COVER HIS COSTS QUOTE THE QUALITY OF CARE WILL BE BETTER AND WE'LL BE ABLE NOT TO LOSE MONEY EVERY TIME WE SEE ONE OF THESE PATIENTS QUOTE HE SAYS STILL THE PLAN'S DESIGNERS FACED HARD CHOICES AND IMPOSED STRICT SOMETIMES SEVERE LIMITS ON WHAT CARE CAN BE FUNDED BY THE PUBLIC PURSE THOUGH THE PLAN PAYS FOR MANY LIFESAVING TREATMENTS LIVER OR KIDNEY TRANSPLANTS FOR PEOPLE WITH CIRRHOSIS OR RENAL FAILURE FOR EXAMPLE IT DRAWS A LINE WHERE THE DATA DON'T PROMISE A CURE AMONG ROUTINE PROCEDURES NO LONGER COVERED ARE TREATMENT FOR MANY BENIGN OR SELF LIMITED ILLNESSES COMMON COLDS SIMPLE SPRAINS AND BASIC FOOD POISONING NONESSENTIAL OR CONTROVERSIAL SURGERY IS ALSO OUT CIRCUMCISION OF NEWBORNS OR GASTRIC BYPASS OPERATIONS FOR THE OBESE BOTH FORMERLY COVERED SOMEBODY WHO THINKS THEIR NOSE IS TOO BIG WON'T BE COVERED SAYS DOCTOR DOLIN MORE IMPORTANT NEITHER WILL A POOR WOMAN WHO SEEKS RECONSTRUCTIVE BREAST SURGERY AFTER MASTECTOMY THE AFFLUENT OF COURSE CAN CONTINUE TO PURCHASE SUCH SERVICES IN OREGON AS ELSEWHERE MOST WRENCHING OF THESE LIMITS IS THE LACK OF COVERAGE FOR CURATIVE TREATMENTS FOR PEOPLE WITH TERMINAL ILLNESSES SUCH AS ENDSTAGE CANCER OR AIDS INSTEAD THE STATE EMPHASIZES EARLY DIAGNOSIS AND TREATMENT AT THE BEGINNING OF SERIOUS ILLNESS MEDICAL TREATMENTS AS LONG AS THEY CAN PROLONG LIFE AND COMFORT CARE INCLUDING PAIN MEDICATION AND HOSPICE SERVICES WHEN THE ODDS OF CURE FALL BELOW FIVE PERCENT THAT'S THE MOST IMPOSSIBLE ISSUE TO DEAL WITH CONCEDES DOCTOR DOLIN DOCTORS AND INSURANCE PLANS CAN'T SOLVE THAT PROBLEM SOCIETY NEEDS TO SAY EVERYBODY CAN'T HAVE EVERYTHING THEY WANT AT THE END OF LIFE GROUPS LIKE THE AMERICAN CANCER SOCIETY TENTATIVELY APPLAUD THE PLAN FOR ITS COVERAGE OF EARLY DIAGNOSTIC PROCEDURES LIKE MAMMOGRAPHY QUOTE WE'RE RATHER PLEASED QUOTE SAYS A SPOKESWOMAN STILL THOSE PROVIDERS AND PATIENTS WHO WANT TO FIGHT TO THE BITTER END ARE GOING TO HAVE A BATTLE UNDER THE NEW SYSTEM DOCTOR WOPAT A PHYSICIAN IN THE RURAL LOGGING TOWN OF LEBANON WAS ONE OF THE DRAFTERS OF THE LIST OF COVERED PROCEDURES HE SAYS THERE IS ONLY ENOUGH MONEY TO PAY FOR WHAT MEDICINE KNOWS WILL WORK NOT ENOUGH TO FINANCE COSTLY EXPERIMENTS WITH LITTLE CHANCE OF SUCCESS THE STATE SHOULDN'T SPEND ITS RESOURCES ON THINGS NOT CLEARLY SHOWN TO BE EFFECTIVE HE SAYS MORE TYPICAL OF TRADE OFFS REQUIRED UNDER THE OREGON PLAN HE SAYS WAS THE CASE OF A TWENTY YEAR OLD WOMAN WHO WALKED INTO HIS OFFICE THIS MONTH SHE SOUGHT A ROUTINE PHYSICAL AND PELVIC EXAM SHE ALSO ASKED HIM TO REMOVE SOME MOLES FROM HER NECK A BENIGN COSMETIC PROCEDURE FORMERLY COVERED BY MEDICAID BUT WHEN SHE OPENED HER MOUTH THE PATIENT REVEALED A COMMON AILMENT OF THE RURAL POOR DECAYING TEETH HAVE YOU CONSIDERED HAVING THESE TEETH REPAIRED DOCTOR WOPAT ASKED I'D LOVE TO BUT MEDICAID WON'T COVER THEM SHE SAID HE INFORMED HER THAT AFTER TUESDAY HE WON'T BE ABLE TO PERFORM COSMETIC MOLE REMOVAL BUT HER DENTAL CARE WILL BE COVERED HE ADDED QUOTE WITH THE MONEY WE SAVE BY NOT REMOVING YOUR MOLES QUOTE THE DOCTOR SAID QUOTE WE CAN PAY FOR YOUR TEETH QUOTE RENO'S TOP AIDE RESIGNED FROM HIS POST AT THE JUSTICE DEPARTMENT THE DEPARTMENT'S NUMBER TWO OFFICIAL PHILIP HEYMANN QUIT A MOVE THAT BOTH HE AND ATTORNEY GENERAL RENO ATTRIBUTED TO A LACK OF PERSONAL CHEMISTRY AND CLASHING OPERATIONAL AND MANAGEMENT STYLES HEYMANN A VETERAN OF FOUR ADMINISTRATIONS AND A HARVARD LAW PROFESSOR SAID HE WOULD STAY ON UNTIL A SUCCESSOR IS SELECTED RENO DISPUTED ANY NOTION OF DISARRAY AT THE DEPARTMENT WHICH HAS SUFFERED HIGH LEVEL PERSONNEL PROBLEMS THE MOVE WHICH WAS SAID TO HAVE TAKEN PRESIDENT CLINTON BY SURPRISE FOLLOWS THE RECENT DEPARTURES OF HIGH LEVEL OFFICIALS AT BOTH THE DEFENSE AND STATE DEPARTMENTS THOUSANDS OF QUAKE VICTIMS LINED UP FOR EMERGENCY FOOD STAMPS IN LOS ANGELES IN SCENES REMINISCENT OF THE GREAT DEPRESSION THE LONG SHUFFLING LINES OF BEDRAGGLED PEOPLE WERE MONITORED BY HUNDREDS OF POLICE A DAY BEFORE PUSHING AND SHOVING BROKE OUT WHEN THOSE SEEKING HELP BECAME FRUSTRATED AND ANGRY SERB GUNNERS FOCUSED THEIR FIRE ALONG THE NORTHERN FRONT LINES OF SARAJEVO AND SERB FORCES REPORTEDLY WERE ATTACKING TROOPS OF THE MUSLIM LED GOVERNMENT IN THE NORTHERN BOSNIAN TOWNS OF MAGLAJ AND TESANJ THE U. N. MEANWHILE CLOSED A KEY ROUTE IN CENTRAL BOSNIA AFTER CROWDS PLUNDERED FOOD CONVOYS AND ASSAULTED ARMED ESCORTS SECRETARY OF STATE CHRISTOPHER APPEALED TO FRANCE FOR AN END TO BICKERING OVER BOSNIA AND URGED U. S. ALLIES TO PREPARE FOR NATO MILITARY ACTION AGAINST THE SERBS TO RELIEVE TWO ENCIRCLED TOWNS TUZLA AND SREBRENICA BUT HE RULED OUT USING U. S. GROUND FORCES TO PRESSURE THE BOSNIAN GOVERNMENT TO ACCEPT A PEACE SETTLEMENT THE SENATE VOTED TO URGE CLINTON TO END A U. S. EMBARGO AGAINST THE HANOI GOVERNMENT THE SIXTY TWO TO THIRTY EIGHT BIPARTISAN ROLL CALL INCREASED THE LIKELIHOOD THAT THE PRESIDENT WILL ACT SOON TO LIFT THE RESTRICTIONS IMPOSED ON VIETNAM AFTER THE NINETEEN SEVENTY FIVE FALL OF SAIGON TO COMMUNIST FORCES CLINTON HAS RELAXED THE EMBARGO TWICE YELTSIN'S OFFICE ISSUED A STATEMENT TELLING RUSSIANS HE QUOTE WILL STAND FIRM IN THE DEFENSE OF REFORMS QUOTE DESPITE A CABINET SHAKE UP THAT REMOVED KEY REFORMERS IT WAS THE FIRST PUBLIC COMMENT FROM THE PRESIDENT ON THE CABINET CRISIS AND CAME A DAY AFTER REFORMER FYODOROV QUIT AS FINANCE MINISTER WARNING OF ECONOMIC CHAOS AND SOCIAL UNREST THE THREE BALTIC STATES WERE ACCUSED OF SEEKING A CONFRONTATION WITH RUSSIA AND TOLD THEY WOULD HAVE TO COOPERATE WITH MOSCOW TO SOLVE THEIR PROBLEMS RUSSIA'S DEPUTY FOREIGN MINISTER CHURKIN FURTHER ALLEGED THAT THE EX SOVIET REPUBLICS LATVIA LITHUANIA AND ESTONIA ARE VIOLATING THE RIGHTS OF THEIR ETHNIC RUSSIAN MINORITIES HOSOKAWA MADE A DIRECT LAST DITCH APPEAL TO THE JAPANESE ELECTORATE TO LOBBY BALKING LEGISLATORS IN ORDER TO REVIVE HIS TROUBLED POLITICAL REFORM BILLS BEFORE A DEADLINE TOMORROW THE PRIME MINISTER ALSO HINTED THAT HE WOULD STEP DOWN FROM HIS POST IF THE REFORM MEASURES FAIL TO WIN PARLIAMENTARY APPROVAL OLIVER NORTH FORMALLY LAUNCHED HIS BID FOR THE G. O. P. NOMINATION TO CHALLENGE VIRGINIA'S INCUMBENT DEMOCRATIC SENATOR CHARLES ROBB NORTH A FORMER NATIONAL SECURITY AIDE TO REAGAN WHO PLAYED A KEY ROLE IN THE IRAN CONTRA AFFAIR SAID HE IS A CONSERVATIVE OUTSIDER WHO WILL STRIKE A BLOW TO GIVE GOVERNMENT BACK TO THE PEOPLE FIGURE SKATER TONYA HARDING ADMITTED SHE FAILED TO IMMEDIATELY TELL AUTHORITIES WHAT SHE KNEW ABOUT THE JANUARY SIXTH ATTACK ON SKATING RIVAL NANCY KERRIGAN IN DETROIT BUT DENIED ANY PRIOR KNOWLEDGE OF THE ASSAULT HARDING WHO HASN'T BEEN CHARGED SAID SHE WANTED TO REMAIN ON THE U. S. OLYMPIC TEAM AND COMPETE IN NORWAY NEXT MONTH FIREARMS COULD BECOME THE LEADING CAUSE OF INJURY RELATED DEATHS IN THE U. S. WITHIN THE NEXT TWO TO THREE YEARS ACCORDING TO CURRENT NATIONWIDE TRENDS FROM NINETEEN EIGHTY FIVE THROUGH NINETEEN NINETY ONE THE DEATH RATE FROM MOTOR VEHICLE ACCIDENTS NOW THE LEADING CAUSE FELL TEN PERCENT WHILE THE DEATH RATE LINKED TO FIREARMS JUMPED FOURTEEN PERCENT THE MEXICAN GOVERNMENT SIGNED AN ACCORD WITH NINE POLITICAL PARTIES CALLING FOR SWEEPING ELECTORAL REFORMS IN AN ATTEMPT TO END A REBEL UPRISING IN THE SOUTHERN STATE OF CHIAPAS THE REBELS REPORTEDLY HAVE SEIZED CONTROL OF A HUGE AREA OF JUNGLE AND MOUNTAIN TERRITORY IN CHIAPAS FORCING LANDOWNERS AND PEASANT FAMILIES TO FLEE STEWART ENTERPRISES INCORPORATED SAID IT COMPLETED AN OFFERING OF TWO MILLION SEVEN HUNDRED FIVE THOUSAND COMMON SHARES ON MONDAY AN ADDITIONAL FOUR HUNDRED THOUSAND SHARES WERE SOLD BY A MAJOR SHAREHOLDER THE OPERATOR OF FUNERAL HOMES AND CEMETERIES SAID IN NEW ORLEANS AFTER THE OFFERING THE COMPANY HAS TWENTY ONE POINT EIGHT MILLION COMMON SHARES OUTSTANDING STEWART SAID THE OFFERING GENERATED ABOUT SIXTY FIVE MILLION DOLLARS IN PROCEEDS AND THAT IT WOULD USE THE FUNDS FOR ACQUISITIONS BEAR STEARNS AND COMPANY WAS THE MANAGING UNDERWRITER THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND ONE EIGHTH PERCENT HIGH TWO AND SEVEN EIGHTHS PERCENT LOW THREE AND ONE SIXTEENTH PERCENT NEAR CLOSING BID THREE AND ONE EIGHTH PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH FIVE PERCENT THIRTY TO NINETY FOUR DAYS THREE POINT ONE OH PERCENT NINETY FIVE TO ONE HUNDRED FORTY NINE DAYS THREE POINT ONE TWO PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO OH PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT THREE OH PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE OH PERCENT THIRTY DAYS THREE POINT ONE TWO PERCENT SIXTY DAYS THREE POINT ONE FOUR PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE TWO PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT FIVE SIX PERCENT THREE MONTHS TWO POINT SIX NINE PERCENT SIX MONTHS THREE POINT OH FIVE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH SEVEN PERCENT ONE MONTH THREE POINT ONE FIVE PERCENT THREE MONTHS THREE POINT THREE OH PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH ONE PERCENT THIRTY DAYS THREE POINT OH ONE PERCENT SIXTY DAYS THREE POINT OH TWO PERCENT NINETY DAYS THREE POINT OH FIVE PERCENT ONE HUNDRED TWENTY DAYS THREE POINT OH NINE PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE FOUR PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT FOUR MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND THREE EIGHTHS PERCENT SIX MONTHS THREE AND THREE QUARTERS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT NINE ONE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY TWENTY FOURTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE SIX PERCENT THIRTEEN WEEKS THREE POINT ONE FOUR PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT SEVEN FOUR PERCENT SIXTY DAYS SIX POINT EIGHT TWO PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT TWO PERCENT SIXTY DAYS SIX POINT NINE TWO PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN THREE PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS MCDONALD'S CORPORATION CITING STEADY GROWTH AND RAPID EXPANSION OF ITS WORLD WIDE BUSINESS REPORTED THAT ANNUAL NET EARNINGS EXCEEDED ONE BILLION DOLLARS FOR THE FIRST TIME THE FAST FOOD CHAIN SAID FOURTH QUARTER EARNINGS ROSE SIXTEEN PERCENT TO TWO HUNDRED SIXTY FOUR POINT FIVE MILLION DOLLARS OR SEVENTY TWO CENTS A SHARE FROM TWO HUNDRED TWENTY SEVEN POINT NINE MILLION DOLLARS OR SIXTY ONE CENTS A YEAR AGO IN THE LATEST PERIOD THERE WERE TEN POINT SEVEN MILLION OR TWO POINT NINE PERCENT FEWER SHARES OUTSTANDING FOR THE FULL YEAR NET INCOME ROSE THIRTEEN PERCENT TO ONE POINT OH EIGHT BILLION DOLLARS OR TWO DOLLARS AND NINETY ONE CENTS A SHARE FROM NINE HUNDRED FIFTY EIGHT POINT SIX MILLION DOLLARS OR TWO DOLLARS AND SIXTY CENTS A SHARE REVENUE FOR THE QUARTER WHICH INCLUDE SALES AT COMPANY OWNED RESTAURANTS AND FRANCHISE REVENUE ROSE SIX PERCENT TO ONE POINT NINE THREE BILLION DOLLARS FROM ONE POINT EIGHT THREE BILLION DOLLARS SYSTEM WIDE SALES WHICH INCLUDE THOSE AT FRANCHISED STORES GREW EIGHT PERCENT TO SIX POINT ONE FIVE BILLION DOLLARS FROM FIVE POINT SEVEN ONE BILLION DOLLARS FOR THE FULL YEAR REVENUE TOTALED SEVEN POINT FOUR BILLION DOLLARS UP FOUR PERCENT FROM SEVEN POINT ONE THREE BILLION DOLLARS WHILE SYSTEM WIDE SALES REACHED TWENTY THREE POINT FIVE BILLION DOLLARS AN EIGHT PERCENT INCREASE FROM TWENTY ONE POINT EIGHT BILLION DOLLARS IN NINETEEN NINETY TWO OVERSEAS OPERATIONS CONTRIBUTED NEARLY FORTY PERCENT OF SYSTEM WIDE SALES LAST YEAR ALTHOUGH JAPAN MCDONALD'S BIGGEST OVERSEAS MARKET CONTINUED TO BE HAMPERED BY A WEAK ECONOMY TOTAL OPERATING PROFIT OUTSIDE THE U. S. ROSE NINE PERCENT DURING ALL OF NINETEEN NINETY THREE AND TEN PERCENT IN THE LATEST QUARTER REFLECTING WHAT THE COMPANY SAID WAS EXPANSION AND HIGHER OPERATING MARGINS PARTLY OFFSET BY WEAKER FOREIGN CURRENCIES DURING NINETEEN NINETY THREE MCDONALD'S ADDED NINE HUNDRED RESTAURANTS WORLD WIDE FIVE HUNDRED SEVENTY SIX OUTSIDE THE U. S. AND TWO HUNDRED TWENTY FIVE MORE THAN DURING THE PREVIOUS YEAR THE COMPANY HAS NEARLY FOURTEEN THOUSAND RESTAURANTS IN ALL THE CLINTON ADMINISTRATION IS SEEKING TO KILL THE TARGETED JOBS TAX CREDIT A ROUGHLY TWO HUNDRED SEVENTY THREE MILLION DOLLAR ANNUAL TAX BREAK USED LARGELY BY THE RETAILING AND HOTEL INDUSTRIES THE WHITE HOUSE ALSO IS CONSIDERING REPLACING THE FEDERAL EMERGENCY UNEMPLOYMENT BENEFITS PROGRAM WHICH EXPIRES FEBRUARY FIFTH WITH A PLAN THAT WOULD REQUIRE A SUBSTANTIAL STATE ROLE THE CHANGES WILL BE PROPOSED IN PRESIDENT CLINTON'S BUDGET EARLY NEXT MONTH QUOTE CERTAIN KINDS OF ANSWERS MAY NOT WORK QUOTE FOR GETTING THE UNEMPLOYED BACK TO WORK LABOR SECRETARY ROBERT REICH TOLD THE CENTER FOR NATIONAL POLICY A WASHINGTON THINK TANK WE NEED TO TURN OUR RESOURCES ELSEWHERE MR. REICH LAID OUT HIS VISION FOR PROGRAMS THAT DO WORK HE LAUDED THE JOB CORPS WHICH PROVIDES LONG TERM TRAINING IN A BOOT CAMP ENVIRONMENT FOR INNER CITY YOUTH HE ALSO SAID EXTRA SCHOOLING BEYOND HIGH SCHOOL AND ALLOWING ENTREPRENEURIAL MINDED UNEMPLOYED WORKERS TO USE BENEFITS TO START BUSINESSES ARE BENEFICIAL THE WHITE HOUSE IS LIKELY TO SEEK NEW EMPHASIS FOR THOSE TYPES OF PROGRAMS IN THE BUDGET ONE PROGRAM THAT DOESN'T WORK MR. REICH ARGUED IS THE JOBS TAX CREDIT WHICH IN THE PAST DECADE HAS GIVEN EMPLOYERS FOUR POINT FIVE BILLION DOLLARS IN TAX BREAKS FOR HIRING CERTAIN GROUPS OF DISADVANTAGED WORKERS UNDER THE PROGRAM COMPANIES THAT HIRE WORKERS MOSTLY INNER CITY YOUTH FOR NINETY CALENDAR DAYS OR ONE HUNDRED TWENTY WORK HOURS CAN GET A BREAK OF AS MUCH AS TWO THOUSAND FOUR HUNDRED DOLLARS A WORKER SEVERAL GOVERNMENT AND PRIVATE STUDIES HAVE CONCLUDED THAT THE PROGRAM DOESN'T HELP ANYONE EXCEPT THE EMPLOYERS WHO GARNER THE TAX CREDITS THE GENERAL ACCOUNTING OFFICE THE RESEARCH ARM OF CONGRESS CONCLUDED TWO YEARS AGO THAT THERE WERE NO SUBSTANTIAL DIFFERENCES BETWEEN THE EARNINGS OF PEOPLE HIRED BY COMPANIES CLAIMING THE TAX BREAK AND OTHER SIMILAR WORKERS AND THE LABOR DEPARTMENT'S INSPECTOR GENERAL LAST YEAR CONCLUDED THAT MOST OF THE WORKERS WOULD HAVE BEEN HIRED EVEN WITHOUT THE TAX CREDIT BUT MARK GORMAN SENIOR DIRECTOR FOR GOVERNMENT AFFAIRS AT THE NATIONAL RESTAURANT ASSOCIATION IN WASHINGTON COUNTERED THAT THE PROGRAM DOES WHAT IT WAS SET UP TO DO NOBODY IS MAKING THE CASE IT CREATES A LOT OF NEW JOBS HE SAID BUT THERE'S NO DOUBT IT ENCOURAGES COMPANIES TO GIVE PREFERENCES TO ECONOMICALLY DISADVANTAGED PEOPLE THAT THEY MIGHT NOT OTHERWISE MANY OF THE ASSOCIATION'S MEMBERS FROM MCDONALD'S FRANCHISES TO RED LOBSTER USE THE PROGRAM MR. GORMAN SAID THE ADMINISTRATION IS STILL TRYING TO DECIDE WHAT TO DO ABOUT FEDERAL UNEMPLOYMENT BENEFITS THERE APPEARS TO BE MINIMAL APPETITE ON CAPITOL HILL TO RESURRECT THE EMERGENCY PROGRAM WHICH STARTED IN NOVEMBER NINETEEN NINETY ONE AND HAS PAID OUT ABOUT TWENTY FIVE BILLION DOLLARS IN AID THE PROGRAM PROVIDES AS MANY AS TWENTY SIX WEEKS OF ADDITIONAL BENEFITS FOR WORKERS WHO HAVE EXHAUSTED REGULAR STATE BENEFITS BUT THE NATIONAL UNEMPLOYMENT RATE DECLINED TO SIX POINT FOUR PERCENT LAST MONTH IT WAS SIX POINT NINE PERCENT WHEN THE FEDERAL UNEMPLOYMENT BENEFITS PROGRAM BEGAN IN NINETEEN NINETY ONE AND SUBSEQUENTLY ROSE TO SEVEN POINT SEVEN PERCENT BEFORE COMING BACK DOWN MR. REICH SAID HE IS CONSIDERING SEEKING AN EXTENDED UNEMPLOYMENT INSURANCE PROGRAM IN WHICH COSTS WOULD BE SPLIT EQUALLY BY THE FEDERAL GOVERNMENT AND THE STATES A SIMILAR FIFTY TO FIFTY PROGRAM IS IN PLACE NOW BUT HAS BEEN VIRTUALLY UNUSED BY THE STATES ROBERT MCGLOTTEN A. F. L. C. I. O. LEGISLATIVE DIRECTOR SAID IT WOULD BE A MISTAKE TO ASK STATES TO KICK IN MORE MONEY HE URGED THE ADMINISTRATION TO SEE UNEMPLOYED WORKERS AS A CRISIS IT IS EXPENSIVE NO DOUBT HE SAID BUT SO IS SUPPLEMENTAL EARTHQUAKE ASSISTANCE IT'S ALSO A NATURAL DISASTER FOR PEOPLE WHO HAVE LOST THEIR JOBS QUOTE AUTHENTIC FITNESS CORPORATION SAID IT PLANS TO REDUCE ITS ANNUAL INTEREST EXPENSE BY EIGHT HUNDRED THOUSAND DOLLARS OR FIVE CENTS A SHARE BY REFINANCING A ONE HUNDRED MILLION DOLLAR CREDIT FACILITY WITH A NEW ONE HUNDRED MILLION DOLLAR CREDIT FACILITY THE SPORTSWEAR MAKER SAID THE NEW LOAN WILL BEAR INTEREST AT A VARIABLE RATE BASED ON THE LONDON INTERBANK OFFERED RATE OR LIBOR PLUS ONE PERCENT REDUCED FROM LIBOR PLUS TWO POINT SEVEN FIVE PERCENT ON ITS CURRENT LOAN DOW JONES AND COMPANY SAID IT ACQUIRED A ONE THIRD INTEREST IN VWD VEREINIGTE WIRTSCHAFTSDIENSTE GMBH A GERMAN NEWS AGENCY SPECIALIZING IN BUSINESS AND ECONOMIC NEWS AND INFORMATION ALSO ACQUIRING ONE THIRD INTERESTS WERE GERMAN PUBLISHERS FRANKFURTER ALLGEMEINE ZEITUNG GMBH AND VERLAGSGRUPPE HANDELSBLATT GMBH TERMS WEREN'T DISCLOSED THE PREVIOUS OWNERS WERE DEUTSCHE PRESSE AGENTUR GMBH GERMANY'S LARGEST NEWS AGENCY AND TWO HOLDING COMPANIES REPRESENTING A NUMBER OF GERMAN TRADE ASSOCIATIONS AND NEWSPAPERS VWD IS BASED IN THE FRANKFURT SUBURB OF ESCHBORN GERMANY DOW JONES PUBLISHES THE WALL STREET JOURNAL BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES TELERATE AND COMMUNITY NEWSPAPERS COASTAL HEALTHCARE GROUP INCORPORATED SAID IT PLANS TO ACQUIRE HEALTH MANAGEMENT ASSOCIATES OF AMERICA INCORPORATED AND MEDICAL MANAGEMENT ASSOCIATES INCORPORATED TWO PRIMARY CARE NETWORKS BASED IN BOCA RATON FLORIDA COASTAL WHICH PROVIDES HEALTH CARE SERVICES TO HOSPITALS AND OTHER MEDICAL PROVIDERS SAID THE ACQUISITIONS WOULD BE MADE THROUGH A STOCK SWAP BUT DIDN'T DISCLOSE THE TERMS THE TWO NETWORKS OWN OR MANAGE A TOTAL OF SEVENTEEN FACILITIES IN FOUR FLORIDA COUNTIES AND HAD COMBINED NINETEEN NINETY THREE REVENUE OF ABOUT ONE HUNDRED MILLION DOLLARS MOTORISTS WHO HAVE PAID FOR ANTILOCK BRAKES AREN'T HAVING ANY BETTER LUCK AVOIDING ACCIDENTS THAN THOSE WHOSE CARS LACK THE TECHNOLOGY ACCORDING TO A NEW STUDY THE STUDY BY THE HIGHWAY LOSS DATA INSTITUTE CONCLUDED THAT CAR COMPANIES MAY BE OVERSELLING THE ADVANTAGES OF ANTILOCK BRAKES FOR INSTANCE MANY ADVERTISEMENTS FOR THE MECHANISM DON'T MAKE CLEAR THAT THEIR PRIMARY ADVANTAGE IS ON WET AND SLIPPERY ROADS HLDI PRESIDENT BRIAN O'NEILL SAID IN A STATEMENT THE INSTITUTE'S STUDY COMPARED INSURANCE LOSSES FOR CARS WITH ANTILOCK BRAKES AND LOSSES FOR THE SAME CARS WITHOUT ANTILOCK BRAKES QUOTE WE FIND NO REDUCTION IN CLAIM FREQUENCIES OR AVERAGE AMOUNTS OF INSURANCE PAYMENTS UNDER EITHER COLLISION OR PROPERTY DAMAGE LIABILITY COVERAGES QUOTE SAID KIM L. HAZELBAKER SENIOR VICE PRESIDENT OF THE INSTITUTE FOR EXAMPLE THE HLDI FOUND THAT OVERALL INSURANCE LOSSES FOR NINETEEN NINETY TWO CHEVROLET CAVALIERS EQUIPPED WITH ANTILOCK BRAKES WERE HIGHER THAN OVERALL LOSSES FOR NINETEEN NINETY ONE MODELS WITHOUT ANTILOCK BRAKES THE NONPROFIT INSURANCE GROUP SAID THERE'S NOTHING WRONG WITH THE BRAKES THEMSELVES WHICH PREVENT WHEELS FROM LOCKING DURING EMERGENCY BRAKING RATHER MANY MOTORISTS DON'T USE THE ANTILOCK BRAKES PROPERLY MR. O'NEILL SAID HE SAID ANTILOCK BRAKES SHOULD NEVER BE PUMPED AS DRIVERS ARE TAUGHT TO DO DURING EMERGENCY STOPS WITH CONVENTIONAL BRAKES ANTILOCK BRAKES CAN PREVENT WHEELS FROM LOCKING REDUCE STOPPING DISTANCES AND IMPROVE DRIVER CONTROL DURING EMERGENCY BRAKING ESPECIALLY ON WET AND SLIPPERY PAVEMENT AMERICAN TELEPHONE AND TELEGRAPH COMPANY POSTED A SLIGHT DECLINE IN FOURTH QUARTER NET INCOME BECAUSE OF ONETIME CHARGES BUT ACROSS THE BOARD GROWTH IN ITS BUSINESSES GENERATED STRONG REVENUE AND OPERATING PROFITS WHILE A. T. AND T.'S GAINS MET ANALYSTS' EXPECTATIONS IMPROVEMENTS IN THE COMPANY'S LONG DISTANCE BUSINESS AND IN NETWORK EQUIPMENT SALES WERE UNUSUALLY ROBUST GIVEN FIERCE COMPETITION IN BOTH SECTORS A. T. AND T.'S N. C. R. CORPORATION COMPUTER UNIT MOREOVER REBOUNDED WITH AN OPERATING PROFIT AND A TWENTY ONE PERCENT INCREASE IN EQUIPMENT SALES FOURTH QUARTER NET FELL TWO PERCENT TO NINE HUNDRED EIGHTY TWO MILLION DOLLARS OR SEVENTY TWO CENTS A SHARE FROM ONE BILLION DOLLARS OR SEVENTY FIVE CENTS A SHARE A YEAR AGO REFLECTING A REDUCTION OF ONE HUNDRED SIXTY SEVEN MILLION DOLLARS OR THIRTEEN CENTS A SHARE BECAUSE OF AN ACCOUNTING CHANGE FOR BENEFITS AND A RESTRUCTURING CHARGE AT N. C. R. WITHOUT THE CHARGE NET INCOME WOULD HAVE RISEN FIFTEEN PERCENT REVENUE GREW FIVE POINT FIVE PERCENT TO EIGHTEEN POINT FOUR SIX BILLION DOLLARS FROM SEVENTEEN POINT FIVE BILLION DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY A. T. AND T. GAINED SEVENTY FIVE CENTS TO FIFTY SIX DOLLARS AND SEVENTY FIVE CENTS A. T. AND T.'S LONG DISTANCE REVENUE INCREASED TWO PERCENT IN THE QUARTER TO NINE POINT NINE TWO BILLION DOLLARS AND ROSE NEARLY ONE PERCENT IN THE YEAR TO THIRTY NINE POINT EIGHT SIX BILLION DOLLARS A SHOWING THAT A. T. AND T. ATTRIBUTED TO TRAFFIC GAINS IN THE TOLL FREE CALLING MARKET AND AN INCREASE IN CONSUMER BUSINESS CALLING TRAFFIC GREW SLIGHTLY MORE THAN SIX PERCENT IN THE QUARTER THE UNIT'S BEST PERFORMANCE IN A YEAR AND A HALF AND ROSE FIVE POINT FIVE PERCENT IN THE YEAR PAINEWEBBER ANALYST JACK B. GRUBMAN ESTIMATED A. T. AND T.'S CONSUMER TRAFFIC ALONE GREW FIVE PERCENT IN THE QUARTER A SIGNIFICANT BOOST QUOTE WHEN THEY HAD BEEN RUNNING ZERO TO ONE PERCENT THROUGH ALL OF NINETEEN NINETY THREE QUOTE HE ADDED THAT A. T. AND T.'S NEW TRUE REWARDS CONSUMER PLAN AIMED AT DERAILING M. C. I. COMMUNICATIONS CORPORATION'S FRIENDS AND FAMILY PROGRAM IS RUNNING DOUBLE THEIR EXPECTATIONS IN TERMS OF CUSTOMER SIGN UPS THIS WAS PROBABLY A. T. AND T.'S STRONGEST QUARTER EVER MR. GRUBMAN SAID NOTING THAT A. T. AND T.'S OPERATING MARGIN OF TEN POINT FOUR PERCENT WAS A RECORD FOR THE COMPANY ITS TWO ENGINES LONG DISTANCE AND NETWORK SYSTEMS ARE REALLY CRANKING TONY FERRUGIA AN ANALYST AT A. G. EDWARDS AND SONS SAINT LOUIS HAD EXPECTED FIVE PERCENT GROWTH RATHER THAN THE EIGHT PERCENT GROWTH A. T. AND T. SHOWED IN EQUIPMENT SALES FOR THE YEAR THEY'RE WELL POSITIONED FOR THE NEXT THREE TO FIVE YEARS SAID MR. FERRUGIA WHO TWO WEEKS AGO IMPROVED HIS RATING ON A. T. AND T. STOCK TO A BUY FROM A HOLD IT WAS A SOLID QUARTER ACROSS OUR LINES OF BUSINESS SAID RICHARD MILLER A. T. AND T.'S CHIEF FINANCIAL OFFICER HE NOTED THAT SALES OF NETWORK EQUIPMENT SHOWED STRENGTH GAINING TWENTY TWO PERCENT OUTSIDE THE U. S. IN THE FULL YEAR HOWEVER A. T. AND T. HAD A THREE POINT SEVEN NINE BILLION DOLLAR OR TWO DOLLARS AND EIGHTY CENTS A SHARE NET LOSS BECAUSE OF ONE TIME CHARGES THEY INCLUDED NONCASH CHARGES OF SEVEN BILLION DOLLARS FOR RETIREE HEALTH BENEFITS AND ONE POINT THREE BILLION DOLLARS FOR SEPARATION AND DISABILITY PAYMENTS THAT WAS PARTIALLY OFFSET BY A THREE HUNDRED EIGHTY THREE MILLION DOLLAR GAIN FROM AN ACCOUNTING CHANGE AFFECTING INCOME TAXES A. T. AND T. SAID THE FULL YEAR LOSS COMPARED WITH NET INCOME OF THREE POINT EIGHT BILLION DOLLARS OR TWO DOLLARS AND EIGHTY SIX CENTS A SHARE A YEAR AGO REVENUE GREW THREE POINT FIVE PERCENT TO SIXTY SEVEN POINT ONE SIX BILLION DOLLARS FROM SIXTY FOUR POINT NINE BILLION DOLLARS EXCLUDING THE CHARGES AND A PREVIOUSLY ANNOUNCED RESTRUCTURING AT N. C. R. A. T. AND T. SAID NET INCOME WOULD HAVE RISEN TWELVE PERCENT TO FOUR POINT TWO SIX BILLION DOLLARS OR THREE DOLLARS AND FIFTEEN CENTS A SHARE WHILE A. T. AND T.'S COSTS GREW IN THE QUARTER AND THE YEAR FIVE PERCENT AND TWO PERCENT RESPECTIVELY THEY DECLINED AS A PERCENT OF REVENUE TOTAL COSTS WERE ELEVEN POINT TWO BILLION DOLLARS IN THE QUARTER AND FORTY POINT FIVE SEVEN BILLION DOLLARS FOR THE YEAR OVERALL PRODUCT SALES INCLUDING PHONE EQUIPMENT COMPUTERS AND CHIPS GREW ALMOST ELEVEN PERCENT TO FIVE POINT EIGHT EIGHT BILLION DOLLARS IN THE QUARTER AND EIGHT PERCENT IN THE YEAR TO SEVENTEEN POINT EIGHT BILLION DOLLARS WITHIN THAT SECTOR NETWORK EQUIPMENT SALES ROSE ALMOST ELEVEN PERCENT TO TWO POINT EIGHT BILLION DOLLARS IN THE FOURTH QUARTER SALES OF COMMUNICATIONS PRODUCTS TO BUSINESSES AND CONSUMERS ROSE TWELVE POINT FIVE PERCENT IN THE QUARTER TO ONE POINT ONE THREE BILLION DOLLARS AND WERE UP ELEVEN PERCENT TO THREE POINT FOUR FOUR BILLION DOLLARS IN THE YEAR AT N. C. R. WHICH THIS WEEK CHANGED ITS NAME TO A. T. AND T. GLOBAL INFORMATION SOLUTIONS SALES OF COMPUTER SYSTEMS ROSE TWENTY PERCENT TO ONE POINT TWO SIX BILLION DOLLARS IN THE QUARTER AND THE COMPANY'S TOTAL REVENUE ROSE SEVEN PERCENT TO TWO POINT THREE BILLION DOLLARS IN THE YEAR N. C. R.'S TOTAL REVENUE GREW TWO PERCENT TO SEVEN POINT TWO SIX BILLION DOLLARS EXCLUDING RESTRUCTURING CHARGES OF ABOUT ONE HUNDRED TWENTY MILLION DOLLARS THE DAYTON OHIO COMPUTER UNIT POSTED OPERATING PROFIT OF SIXTY ONE MILLION DOLLARS FOR THE QUARTER DESPITE THE ECONOMIC SLUMP IN EUROPE AND JAPAN FINANCIAL SERVICES REVENUE CLIMBED TWENTY THREE PERCENT IN THE QUARTER TO SEVEN HUNDRED TWELVE MILLION DOLLARS AND ROSE THIRTY TWO PERCENT TO TWO POINT FIVE BILLION DOLLARS IN THE YEAR A. T. AND T. SAID PAINEWEBBER'S MR. GRUBMAN ESTIMATED THE UNIVERSAL CREDIT CARD WITH SEVENTEEN MILLION CARDS IN THE MARKET ACCOUNTED FOR ABOUT HALF OF THE REVENUE LINTAS WORLDWIDE WITH ITS NEW YORK OPERATION HURT BY THE LOSS OF SEVERAL MAJOR ACCOUNTS LAST YEAR TOOK AN AGGRESSIVE STEP YESTERDAY TO KEEP ONE OF ITS MOST VALUABLE REMAINING CLIENTS HAPPY LINTAS OWNED BY INTERPUBLIC GROUP CREATED A NEW AGENCY THE GOTHAM GROUP TO HANDLE THE FIFTY MILLION DOLLARS MAYBELLINE ACCOUNT LINTAS CHOSE TWO EXECUTIVES FROM ITS HOBBLED NEW YORK OPERATION TO HEAD THE FLEDGING GOTHAM AGENCY F. STONE ROBERTS PRESIDENT AND CHIEF OPERATING OFFICER AT LINTAS NEW YORK WILL BECOME CHIEF EXECUTIVE OFFICER AND SHERI L. COLONEL LINTAS EXECUTIVE VICE PRESIDENT WILL BE PRESIDENT ADDITIONALLY LYNN GIORDANO WHO IS GROUP CREATIVE DIRECTOR AT D'ARCY MASIUS BENTON AND BOWLES IS JOINING GOTHAM AS CREATIVE DIRECTOR GOTHAM WILL BE WHOLLY OWNED BY INTERPUBLIC BUT MR. ROBERTS WILL REPORT TO KENNETH L. ROBBINS CHAIRMAN AND CHIEF EXECUTIVE OF LINTAS WORLDWIDE IT WILL HAVE NO CONNECTION WITH THE NEW YORK AGENCY WHERE MR. ROBERTS FORTY NINE YEARS OLD WORKED FOR NEARLY A QUARTER OF A CENTURY LINTAS IS THE LATEST AD SHOP ALONG MADISON AVENUE TO CREATE AN AGENCY SPECIFICALLY TO SERVICE A MAJOR CLIENT IN AUGUST OMNICOM GROUP ESTABLISHED THE OFFSHOOT AGENCY OF D. D. B. NEEDHAM BERLIN WRIGHT CAMERON TO WORK ON THE VOLKSWAGEN ACCOUNT IN NOVEMBER GREY ADVERTISING ESTABLISHED G. TWO AN AUTONOMOUS FULL SERVICE AGENCY TO HANDLE THE ACCOUNT OF MITSUBISHI MOTOR SALES OF AMERICA IN BOTH INSTANCES NEEDHAM AND GREY TOOK TOP EXECUTIVES FROM THEIR CORE AGENCIES TO FORM THE SPINOFF OPERATIONS THESE AGENCIES WERE ESTABLISHED PARTIALLY SO THEY AND THEIR BIGGER SISTER AGENCIES COULD COMPETE FOR NEW BUSINESS WITHOUT FACING CLIENT CONFLICT PROBLEMS BY OPENING GOTHAM TO HANDLE MAYBELLINE FOR EXAMPLE MR. ROBERTS SAYS LINTAS NEW YORK NOW COULD COMPETE FOR BUSINESS FROM SUCH ADVERTISERS AS JOHNSON AND JOHNSON AND CHESEBROUGH POND'S WHOSE SKIN CARE PRODUCTS COMPETE WITH MAYBELLINE'S REVITALIZING LINE MR. ROBERTS WON'T HAVE A SUCCESSOR AT LINTAS INSTEAD THE TITLE OF PRESIDENT WILL BE ELIMINATED AND THE DUTIES AND TITLE OF OPERATING CHIEF WILL BE TAKEN BY ANTHONY G. MILLER CHAIRMAN AND CHIEF EXECUTIVE OF LINTAS NEW YORK MR. MILLER'S ADDED RESPONSIBILITY WAS UNEXPECTED BY THE AD INDUSTRY THERE WAS SPECULATION RECENTLY THAT MR. MILLER MIGHT TAKE THE FALL FOR THE STEADY LOSSES OF ACCOUNTS INCLUDING DIET COKE AND INTERNATIONAL BUSINESS MACHINE'S PERSONAL COMPUTER BUT MR. ROBBINS SAID IN AN INTERVIEW YESTERDAY THAT NOTHING COULD BE FURTHER FROM THE TRUTH QUOTE WE WENT TO INTERPUBLIC WITH THIS PLAN INCLUDING MR. MILLER'S ADDITIONAL TITLE AND THEY ENDORSED IT QUOTE HE SAID GOTHAM WILL HAVE AN INITIAL STAFF OF THIRTY ALL CULLED FROM LINTAS'S NEW YORK OPERATION ITS OFFICES WILL BE ON LOWER FIFTH AVENUE FAR FROM LINTAS'S HEADQUARTERS IN MIDTOWN MANHATTAN LINTAS EMPLOYEES ARE NO STRANGERS TO THE OFFICES AT SEVENTY NINE FIFTH AVENUE LAST YEAR LINTAS ESTABLISHED A SPINOFF SHOP CALLED L. TWO IN WHAT WAS ULTIMATELY AN UNSUCCESSFUL ATTEMPT TO RETAIN THE I. B. M. PERSONAL COMPUTER ACCOUNT IT WAS AWARDED TO OMNICOM'S MERKLEY NEWMAN HARTY MR. ROBERTS DESCRIBED THE GOTHAM OPENING AS A SEAMLESS TRANSITION NEW ADS FOR MAYBELLINE ARE ALREADY IN PRODUCTION GOTHAM BEGAN TO TAKE SHAPE LATE LAST YEAR AND HAS NO CONNECTION TO THE BIG ACCOUNT LOSSES SAID MR. ROBBINS LINTAS INFORMED MAYBELLINE ABOUT ITS PLANS TWO WEEKS AGO AND RECEIVED ITS ENDORSEMENT MR. ROBERTS SAID THAT GOTHAM HAS PLANS TO BECOME A FULL SERVICE AGENCY ONE THAT WILL COMPETE FOR ACCOUNTS FROM VARYING BUSINESSES BUT FIRST IT MUST PROVE TO MAYBELLINE ITS CHARTER CLIENT AS MR. ROBERTS CALLED IT THAT GOTHAM IS UP AND RUNNING THE OTHER SPINOFF AGENCIES HAVE ACCOUNTS BEYOND THEIR CHARTER CLIENTS BERLIN WRIGHT HAS THE NEW YORKER MAGAZINE AMONG OTHERS G. TWO HAS MITSUBISHI DEALERS IN DALLAS HOUSTON AND LOS ANGELES ASKED WHETHER GOTHAM IS BEING ESTABLISHED BECAUSE MAYBELLINE IS UNHAPPY WITH LINTAS MR. ROBERTS SAID THAT WE HAVE A HAPPY CLIENT MR. ROBERTS SAID HIS DEPARTURE FROM LINTAS IS BITTERSWEET BECAUSE OF THE TREMENDOUS NUMBER OF FRIENDS AND MEMORIES HOWEVER HE WORKED WITH MS. COLONEL THIRTY EIGHT FOR ABOUT A DOZEN YEARS MS. COLONEL SAID HER ARM DIDN'T NEED ANY TWISTING BECAUSE THE NEW AGENCY REPRESENTS A QUOTE CHALLENGE AND OPPORTUNITY QUOTE GOTHAM MARKS A REUNION OF MR. ROBERTS MS. COLONEL AND MS. GIORDANO FORTY FIVE THE TRIO WORKED TOGETHER ON PROCTER AND GAMBLE'S COVER GIRL COSMETICS BUSINESS AT LINTAS'S PREDECESSOR AGENCY S. S. C. AND B. IF MR. ROBERTS HAS A SPECIALTY REPUTATION ON MADISON AVENUE IT IS THE BEAUTY CARE BUSINESS HE EVEN MARRIED A FORMER COVER GIRL MODEL THERE ARE MANY RUMORS NOT TRUE HE SAID THAT RUMOR HAPPILY IS TRUE KELLOGG COMPANY IS PITCHING ALL BRAN EXTRA FIBER CEREAL WITH AN ANTICANCER MESSAGE AND A TIE IN TO THE AMERICAN CANCER SOCIETY A RETURN TO A TACTIC THE COMPANY FIRST USED TEN YEARS AGO THE NEW CAMPAIGN FROM LEO BURNETT CHICAGO CONSISTS OF THIRTY SECOND COMMERCIALS DIVIDED INTO TWO PARTS THE FIRST FIFTEEN SECONDS ARE DEVOTED TO DEPICTING HEALTHY LIFESTYLES INCLUDING A MAN PEDALING AN EXERCISE BICYCLE AND A WOMAN PERFORMING A BREAST SELF EXAM A VOICEOVER RECOMMENDS EATING FOODS WITH FIBER AS PART OF A LOW FAT DIET WHICH MAY ACTUALLY REDUCE THE RISK OF CERTAIN TYPES OF CANCER AN AMERICAN CANCER SOCIETY INFORMATION LINE APPEARS ON SCREEN AND THE NARRATOR SAYS BASIC HEALTH CARE IMMEDIATELY AFTER COMES A FIFTEEN SECOND COMMERCIAL FOR KELLOGG ALL BRAN CLAIMING ALL BRAN IS A SUPERIOR FIBER SOURCE TO SHREDDED WHEAT THE TIMING OF THE CAMPAIGN COULDN'T BE BETTER SAID DOCTOR GARY COSTLEY PRESIDENT OF KELLOGG'S NORTH AMERICAN OPERATIONS QUOTE THE COUNTRY IS IN A MAJOR SERIOUS DEBATE ON HEALTH CARE WE BELIEVE FUNDAMENTALLY THAT ONE WAY TO REDUCE COSTS IS TO PROVIDE WAYS FOR PEOPLE NOT TO GET SICK TEN YEARS AGO KELLOGG RAN ADS FOR ALL BRAN TOUTING THE LINK BETWEEN HIGH FIBER LOW FAT DIETS AND LOWER CANCER INCIDENCE KELLOGG ALSO PUT THE NATIONAL CANCER INSTITUTE'S NAME AND ADDRESS ON PRODUCT LABELS THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST A WASHINGTON ADVOCACY GROUP GAVE ITS ANNUAL HUBBARD AWARDS TO ADS IT DEEMED THE MOST MISLEADING UNFAIR AND IRRESPONSIBLE IN NINETEEN NINETY THREE AMONG THE TWELVE MARKETERS CITED WERE HONDA MOTOR COMPANY'S AMERICAN HONDA MOTOR COMPANY WHICH OBSCURES THE TRUE COST OF LEASING CSPI CHARGED WITH ADS THAT FLASH FINANCIAL INFORMATION ON THE SCREEN TOO QUICKLY AND THE AMERICAN DAIRY ASSOCIATION'S CLAIM THAT VITAMIN A HELPS KEEP SKIN SMOOTH IS UNFAIR THE GROUP SAID BECAUSE WELL FED AMERICANS DON'T SUFFER FROM SKIN PROBLEMS ASSOCIATED WITH SEVERE DEFICIENCIES HONDA SAID ITS ADS MEET ALL LEGAL REQUIREMENTS AND INVITED VIEWERS INTO SHOWROOMS FOR COMPLETE DETAILS THE DAIRY ASSOCIATION SAID IT STANDS BY ITS CLAIMS THE GROUP ALSO NAMED CAPITAL HOLDING'S FIRST DEPOSIT NATIONAL BANK CITING NO ANNUAL FEE AND LOW INTEREST RATES CLAIMS FOR ITS VISA GOLD CARD DESPITE HIGH MONTHLY CREDIT LINE FEES THE NEW HAMPSHIRE BANK SAID IT STANDS BY THE ACCURACY OF ITS MARKETING CLAIMS ALSO CITED FOR A HUBBARD COMMERCIAL EXCESS AWARD WAS THE PUBLIC BROADCASTING SERVICE FOR AIRING UNDERWRITER ACKNOWLEDGEMENTS THAT CSPI SAID ARE TANTAMOUNT TO REGULAR ADS ON T. V. A P. B. S. SPOKESMAN SAID QUOTE I THINK THE CENTER DESERVES THE P. T. BARNUM AWARD FOR SELF PROMOTIONAL EXCESS QUOTE KANSAS GAS AND ELECTRIC COMPANY A UNIT OF WESTERN RESOURCES INCORPORATED SAID IT IS REDEEMING EARLY BONDS VALUED AT TWENTY SEVEN MILLION NINE HUNDRED SIXTY FIVE THOUSAND DOLLARS WHICH IT ISSUED JOINTLY WITH KANSAS CITY POWER AND LIGHT COMPANY THE UTILITY COMPANY SAID IT WOULD PAY A ONE HUNDRED PERCENT REDEMPTION PRICE PLUS ACCRUED INTEREST TO THE REDEMPTION DATE FOR FIFTY PERCENT OF THE FIVE AND THREE QUARTERS PERCENT POLLUTION CONTROL REVENUE BONDS SERIES NINETEEN SEVENTY THREE ISSUED TO THE CITY OF LACYGNE KANSAS KANSAS CITY POWER AND LIGHT WILL PAY FOR THE REMAINING FIFTY PERCENT THE REDEMPTION DATE IS MARCH FIRST SARA LEE CORPORATION ITS HUGE HOSIERY BUSINESS SNAGGED BY A SHIFT TO MORE CASUAL DRESS AND INTENSE COMPETITION REPORTED DISAPPOINTING FISCAL SECOND QUARTER RESULTS AND SAID EARNINGS FOR THE CURRENT QUARTER WOULD BE FLAT THE NUMBERS ALSO PROVIDED A CLUE ABOUT WHY SARA LEE'S FIRST NON AMERICAN PRESIDENT LASTED ONLY SIX MONTHS ON THE JOB THE WORLD'S LARGEST MAKER OF STOCKINGS AND SOCKS HAS DECLINED TO DISCUSS THE SUDDEN RESIGNATION ON DECEMBER THIRTY FIRST OF CORNELIS BOONSTRA WHO HAD SPENT MUCH OF HIS TENURE TRYING TO REPAIR THE COMPANY'S SIX BILLION DOLLARS PERSONAL PRODUCTS BUSINESS QUOTE THE COMPANY SAID HE LEFT FOR PERSONAL REASONS PERHAPS SOME WERE PERSONAL PRODUCTS' REASONS SAID JOHN M. MCMILLIN FOOD ANALYST AT PRUDENTIAL SECURITIES INCORPORATED AFTER SEEING THE RESULTS SARA LEE'S STOCK FELL ON THE NEWS DROPPING ONE DOLLAR AND FIFTY CENTS OR SIX PERCENT TO TWENTY THREE DOLLARS AND FIFTY CENTS AS MORE THAN THREE POINT ONE MILLION SHARES TRADED ON THE NEW YORK STOCK EXCHANGE FOR THE SECOND QUARTER ENDED JANUARY FIRST NET INCOME WAS TWO HUNDRED THIRTY SIX MILLION DOLLARS OR FORTY EIGHT CENTS A SHARE UP SEVEN POINT TWO PERCENT FROM TWO HUNDRED TWENTY MILLION DOLLARS OR FORTY FOUR CENTS A SHARE A YEAR EARLIER THE GAIN WAS FUELED BY THE STRONG PERFORMANCE OF SARA LEE'S PACKAGED MEATS AND BAKERY BUSINESS AS WELL AS ITS HOUSEHOLD AND PERSONAL CARE UNIT EACH OF WHICH POSTED DOUBLE DIGIT GAINS IN OPERATING INCOME TOTAL SALES ROSE FOUR POINT FOUR PERCENT TO FOUR POINT OH ONE BILLION DOLLARS FROM THREE POINT EIGHT FOUR BILLION DOLLARS BUT PERSONAL PRODUCTS THE CHICAGO COMPANY'S BIGGEST SECTOR AND ONE THAT WALL STREET INCREASINGLY LOOKS TO FOR FUTURE GROWTH REPORTED AN EIGHT POINT FOUR PERCENT DECLINE IN OPERATING PROFIT TO ONE HUNDRED SEVENTY NINE MILLION DOLLARS FROM ONE HUNDRED NINETY SIX MILLION DOLLARS ON A ONE POINT TWO PERCENT SALES SLIPPAGE TO ONE POINT SEVEN BILLION DOLLARS SARA LEE SELLS SUCH POWERHOUSE HOSIERY BRANDS AS HANES L'EGGS AND DIM ALSO INCLUDED IN PERSONAL PRODUCTS ARE PLAYTEX WOMEN'S UNDERWEAR HANES T. SHIRTS AND UNDERWEAR AND CHAMPION FLEECEWEAR JOANNA SCHARF AN S. G. WARBURG AND COMPANY ANALYST ATTRIBUTED THE UNRAVELING IN HOSIERY TO A STRUCTURAL SHIFT IN WHAT WOMEN ARE PUTTING ON THEIR LEGS THAT SARA LEE FAILED TO RECOGNIZE EARLY ON WHILE MORE WOMEN SHED SHEER PANTYHOSE AND STOCKINGS FOR OPAQUE HOSE AND EVEN SOCKS AS PART OF A MORE CASUAL LIFESTYLE SARA LEE MISTAKENLY REGARDED IT AS A FASHION STATEMENT MS. SCHARF SAID THEY'RE LATE TO THE PARTY BUT EVENTUALLY WILL CATCH UP SHE PREDICTED STILL SHE SAID IT'S A DISAPPOINTMENT TO SEE A DECLINE IN HOSIERY AGAINST A DECLINE LAST YEAR SARA LEE BLAMED QUOTE ONGOING SOFTNESS IN OUR EUROPEAN HOSIERY AND KNIT PRODUCTS OPERATIONS COMBINED WITH WEAKER THAN EXPECTED TRENDS FOR U. S. HOSIERY AND KNIT PRODUCTS QUOTE FOR THE LIKELIHOOD OF QUOTE GENERALLY FLAT EARNINGS FOR THE THIRD QUARTER QUOTE A YEAR AGO SARA LEE EARNED ONE HUNDRED FIFTY TWO MILLION DOLLARS OR THIRTY CENTS A SHARE ON SALES OF THREE POINT THREE BILLION DOLLARS ANALYSTS TAKEN ABACK BY THE LATEST NUMBERS HAD BEEN PROJECTING THIRD QUARTER EARNINGS OF THIRTY THREE CENTS AND FULL YEAR FIGURES OF ONE DOLLAR AND FIFTY FOUR CENTS ACCORDING TO FIRST CALL WHICH MONITORS ESTIMATES BECAUSE THE COMPANY NOW DOUBTS IT CAN FULLY OFFSET PERSONAL PRODUCTS' PROBLEMS WITH OTHER BUSINESSES PRUDENTIAL'S MR. MCMILLIN NOW EXPECTS THAT EARNINGS WILL BE UP ABOUT FIVE PERCENT FOR THE YEAR INSTEAD OF MOST PEOPLE'S HOPES FOR TEN PERCENT SOME ANALYSTS SUGGEST THAT WHAT SARA LEE NEEDS TO DO WITH ITS APPAREL BUSINESS IN EUROPE WHERE AN ECONOMIC SLUMP HAS EXACERBATED EXCESS MANUFACTURING CAPACITY IS TO FURTHER REDUCE COSTS PUSH BRANDED PRODUCTS WHEREVER POSSIBLE AND WAIT FOR WHAT SOME SEE AS INEVITABLE INDUSTRY CONSOLIDATION DURING YESTERDAY'S CONFERENCE CALL WITH ANALYSTS SARA LEE DISCLOSED THAT IT HAS ABANDONED EFFORTS TO INTRODUCE ITS PRINCESSA HOSIERY LINE IN SPAIN THE ISSUE IN EUROPE IS MUCH MORE COMPETITION THAN VOLUME MR. MCMILLIN SAID WARBURG'S MS. SCHARF CITING THE PRESENCE OF SUCH RIVALS AS U. S. BASED FRUIT OF THE LOOM AND U. K. BASED HARTSTONE SAID THE NEAR TERM COSTS OF SARA LEE POSITIONING ITSELF TO BE THE EUROPEAN LEADER ARE GREATER THAN I ANTICIPATED TRADITIONALLY SARA LEE HAS BEEN RELUCTANT TO ENGAGE IN PRICE WARS INSTEAD MAINTAINING ITS MARGINS BY STRINGENT COST REDUCTIONS ITS STRATEGY IS TO TURN REGIONAL LABELS INTO MEGABRANDS THAT SPAN BORDERS WHEREVER POSSIBLE AMONG ITS MAJOR FOODSIDE BRANDS ARE HILLSHIRE FARM JIMMY DEAN AND SARA LEE IN BEVERAGES ITS DOUWE EGBERTS COFFEE IS A LEADING EUROPEAN BRAND IN HOUSEHOLD ITEMS KIWI SHOE POLISH AND IN ACCESSORIES COACH LEATHER GOODS GOLD AND SILVER FUTURES PRICES PLUMMETED ON WAVES OF TECHNICAL SELLING AND AN ABSENCE OF THE PHYSICAL DEMAND FOR PRECIOUS METALS THAT HAS SUPPORTED THESE MARKETS IN RECENT MONTHS AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY WAS DOWN SEVEN DOLLARS AND TWENTY CENTS TO THREE HUNDRED SEVENTY NINE DOLLARS AND FIFTY CENTS AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVER FUTURES CONTRACT FELL SIXTEEN CENTS TO FOUR DOLLARS AND NINETY EIGHT CENTS AN OUNCE TRADERS SAID HEAVY SELLING BY A LARGE NEW YORK INVESTMENT BANK HELPED TO INSTIGATE THE ROUT DURING THE LAST HALF OF THE TRADING DAY AS THE AFTERNOON WORE ON THE ABSENCE OF MIDDLE EASTERN AND INDIAN INVESTORS WHO LATELY HAVE SUPPORTED THE MARKET ACCELERATED THE PACE OF THE PRICE DECLINE QUOTE DESPITE THE BULLISH CHARTS AND EUPHORIA BY FUTURES FUNDS THE KEY IS THAT PHYSICAL DEMAND HAS DRIED UP IN RECENT WEEKS QUOTE SAID BERNARD SAVAIKO SENIOR ANALYST AT PAINEWEBBER INCORPORATED THE MARKETS HAVE BEEN OVERBOUGHT AND THE CASH GUYS WHO BOUGHT AT LOWER LEVELS HAVE STARTED TAKING PROFITS FOR WEEKS GOLD PRICES HAVE FLUCTUATED IN A RANGE BETWEEN ROUGHLY THREE HUNDRED EIGHTY DOLLARS AND THREE HUNDRED NINETY FIVE DOLLARS AN OUNCE BUT PRICES FELL BELOW THE BOTTOM OF THAT RANGE YESTERDAY LARGELY BECAUSE OF THE ABSENCE OF PHYSICAL DEMAND THE PRICE OF SILVER SEEMED TO FOLLOW GOLD'S LEAD ANALYSTS SAID LAST YEAR HEAVY BUYING OF SILVER BULLION BY SAUDI INVESTORS WHO WORRIED ABOUT A POSSIBLE DEVALUATION OF THEIR CURRENCY HELPED LEND STRENGTH TO BOTH SILVER AND GOLD PRICES NOT SO YESTERDAY HOWEVER I WAS DISAPPOINTED IN THE PHYSICAL DEMAND SAID DENISE GIORDANO DIRECTOR OF BULLION TRADING AT SWISS BANK CORPORATION THE GUYS IN THE MIDDLE EAST SEEM QUITE CONTENT TO LET THE MARKET COME TO THEM MOST OF THE BUYING OF SILVER BY MIDDLE EASTERN INVESTORS OCCURRED LAST FALL IN THE RANGE FROM FOUR DOLLARS AND FORTY CENTS TO FOUR DOLLARS AND FIFTY CENTS AN OUNCE AS PRICES ROSE ABOVE FOUR DOLLARS AND FIFTY CENTS AN OUNCE COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY JUMPED ON THE BUYING BANDWAGON SINCE THEN HOWEVER THE UPWARD MOMENTUM OF BOTH THE GOLD AND SILVER MARKETS HAS STALLED AND MAY BE DESTINED FOR FURTHER EROSION IN GOLD MS. GIORDANO SAID IF WE OPEN TODAY UNDER THREE HUNDRED SEVENTY SEVEN DOLLARS THREE HUNDRED SEVENTY DOLLAR TO THREE HUNDRED SEVENTY TWO DOLLARS IS THE NEXT LEVEL OF SUPPORT I THINK THAT LEVEL WILL HOLD GRAINS AND SOYBEANS WHEAT FUTURES PRICES FELL AFTER THE INTERNATIONAL WHEAT COUNCIL FORECAST THAT FOREIGN WHEAT IMPORTS WOULD TUMBLE THIS YEAR AND U. S. EXPORTERS WOULD BEAR THE BRUNT OF THE DECLINE AT THE CHICAGO BOARD OF TRADE WHEAT FOR MARCH DELIVERY WAS DOWN FOUR AND ONE HALF CENTS TO THREE POINT SIX EIGHT FIVE DOLLARS A BUSHEL THE WHEAT COUNCIL ESTIMATES WHEAT IMPORTS BY RUSSIA WILL SLIDE TO SIX MILLION METRIC TONS IN THE NINETEEN NINETY THREE TO NINETY FOUR SEASON FROM ELEVEN POINT ONE MILLION TONS A YEAR AGO ASIAN IMPORTS INCLUDING CHINA WILL FALL TO TWENTY NINE POINT FOUR MILLION TONS IN NINETEEN NINETY FOUR FROM THIRTY THREE POINT FOUR MILLION IN NINETEEN NINETY THREE THE COUNCIL SAID RUSSIAN IMPORTS WILL DECLINE MAINLY BECAUSE IT IS MORE DIFFICULT TO OBTAIN FOREIGN BORROWING CREDITS NOT BECAUSE RUSSIA DOESN'T NEED THE WHEAT IN FACT WHEAT PRODUCTION IN RUSSIA IS DOWN TO FORTY THREE MILLION TONS FROM FORTY SIX POINT TWO MILLION A YEAR AGO AND THE RUSSIAN GOVERNMENT PLANS TO LEND FARMERS ABOUT NINE BILLION DOLLARS TO BUY FERTILIZERS AND EQUIPMENT ASIAN PURCHASES WILL BE LOWER AS A RESULT OF BETTER CROPS IN CHINA INDIA AND PAKISTAN THE COUNCIL SAID ENERGY THE LATEST COLD SPELL IN MUCH OF THE NORTHERN HALF OF THE COUNTRY PARTICULARLY THE NORTHEAST BOOSTED PRICES FOR HEATING OIL IN THE PAST FIVE SESSIONS ON THE NEW YORK MERCANTILE EXCHANGE FEBRUARY HEATING OIL HAS SURGED MORE THAN FIVE CENTS A GALLON THE CONTRACT SETTLED YESTERDAY AT FIFTY THREE POINT OH SIX CENTS A GALLON UP ZERO POINT SEVEN FIVE CENT THE COLD WEATHER HAS SPURRED DEMAND FOR HEATING OIL AND DEPLETED INVENTORIES AT THE SAME TIME MARKET PARTICIPANTS POINTED TO AN ENERGY DEPARTMENT REPORT RELEASED WEDNESDAY AFTER TRADING ENDED IN NEW YORK WHICH SHOWED INVENTORIES FELL BY EIGHT POINT NINE MILLION BARRELS IN THE WEEK ENDED DECEMBER TWENTY FIRST NEARLY EIGHT MILLION BARRELS OF THE DECLINE WAS ON THE EAST COAST THE WORLD'S LARGEST HEATING OIL MARKET NATURAL GAS FUTURES ALSO ROSE BECAUSE OF THE COLD WEATHER AND A SHARP DECLINE IN THE LEVEL OF GAS IN STORAGE GAS FOR MARCH DELIVERY GAINED FIVE POINT EIGHT CENTS PER MILLION BRITISH THERMAL UNITS TO SETTLE AT TWO POINT FOUR ONE SEVEN DOLLARS MEANWHILE TRADERS TOOK PROFITS IN CRUDE OIL FUTURES THE MARCH CONTRACT SETTLED AT FIFTEEN DOLLARS AND FORTY TWO CENTS A BARREL DOWN FIVE CENTS ALUMINUM THE PRICE OF ALUMINUM SOARED TO A SIX MONTH HIGH OF ONE THOUSAND TWO HUNDRED FORTY FOUR DOLLARS A METRIC TON ON EXPECTATIONS THAT PRODUCERS WOULD REACH AN AGREEMENT TO SLASH ALUMINUM OUTPUT THE PRICE IS UP TWENTY PERCENT FROM THE COMMODITY'S LOW POINT LAST NOVEMBER ALUMINUM FUTURES CONTRACTS ARE TRADED ON THE LONDON METAL EXCHANGE QUOTE THE MARKET IS EXPECTING AN ACCORD QUOTE SAID WILLIAM ADAMS ANALYST AT RUDOLF WOLFF AND COMPANY MEMBERS OF THE LONDON METAL EXCHANGE MOST ANALYSTS EXPECT AN ANNUAL CUT OF ONE POINT FIVE TO TWO MILLION METRIC TONS OF ALUMINUM INCLUDING FIVE HUNDRED THOUSAND TONS LESS OUTPUT FROM THE COMMONWEALTH OF INDEPENDENT STATES MR. ADAMS SAID ROYAL CROWN COLA COMPANY A UNIT OF TRIARC COMPANIES CREATED FOUR NEW MANAGEMENT POSITIONS AIMED AT REVITALIZING THE SOFT DRINK MAKER JOHN C. CARSON ROYAL CROWN PRESIDENT AND CHIEF EXECUTIVE SAID THE NEW MANAGEMENT TEAM IS AIMED AT IMPROVING THE COMPANY'S RELATIONS WITH ITS BOTTLERS WHICH ANALYSTS SAID HAVE BEEN A WEAK LINK IN OPERATIONS THE FORT LAUDERDALE FLORIDA COMPANY ALSO SAID IT WILL LAUNCH A TEN MILLION DOLLAR ADVERTISING CAMPAIGN CHIEF FINANCIAL OFFICER KENNETH A. THOMAS FORTY WAS NAMED TO THE ADDITIONAL POST OF SENIOR VICE PRESIDENT OF BUSINESS INFORMATION SYSTEMS AND HUMAN RESOURCES JERRY WILL FORTY FOUR WAS NAMED SENIOR VICE PRESIDENT FOR BUSINESS DEVELOPMENT HE PREVIOUSLY WAS PRESIDENT AND CHIEF OPERATING OFFICER OF PREMIUM BEVERAGES INCORPORATED A SOFT DRINK UNIT OF THE SEAGRAM COMPANY OF MONTREAL ALAN LEYLAND FIFTY THREE YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF OPERATIONS RESPONSIBLE FOR ROYAL CROWN'S CONCENTRATE OPERATIONS ITS U. S. FRANCHISE BOTTLER NETWORK AND PRIVATE LABEL BUSINESS MR. LEYLAND MOST RECENTLY A PRIVATE CONSULTANT PREVIOUSLY WAS PRESIDENT OF CANADIAN BOTTLER LAKELANDS BEVERAGES DONALD LENEHAN FORTY ONE WAS NAMED SENIOR VICE PRESIDENT OF MARKETING HE FORMERLY WAS VICE PRESIDENT OF MARKETING FOR CABLE NEWS NETWORK AND HEADLINE NEWS UNITS OF TURNER BROADCASTING SYSTEM INCORPORATED OF ATLANTA JERRY SMITH FORTY NINE WILL CONTINUE AS PRESIDENT OF THE INTERNATIONAL GROUP BOWING TO REGULATORY AND CONGRESSIONAL COMPLAINTS MAJOR BANKING TRADE GROUPS ARE PLANNING TO RECOMMEND THAT CUSTOMERS BE REQUIRED TO SIGN STATEMENTS THAT THEY UNDERSTAND MUTUAL FUNDS THEY BUY THROUGH BANKS ARE UNINSURED IN NONBINDING GUIDELINES ISSUED IN JULY THE COMPTROLLER OF THE CURRENCY MADE THE SAME RECOMMENDATION ALTHOUGH MANY BANKS DECLINED TO DO SO REGULATORS AND LEGISLATORS HAVE BECOME INCREASINGLY UNCOMFORTABLE WITH ANECDOTAL EVIDENCE THAT BANK EMPLOYEES SOME OF THEM TELLERS WERE OFFERING EQUITY BASED INVESTMENTS TO UNSOPHISTICATED CONSUMERS WHO MISTAKENLY BELIEVED THAT THEY WERE BUYING PRODUCTS WHICH WERE BACKED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION BANKING GROUPS EXPECTED TO ADOPT THE POLICY INCLUDE THE AMERICAN BANKERS ASSOCIATION THE INDEPENDENT BANKERS ASSOCIATION OF AMERICA THE NATIONAL BANKERS ASSOCIATION THE BANKERS ROUNDTABLE THE CONSUMER BANKERS ASSOCIATION AND THE SAVINGS AND COMMUNITY BANKERS OF AMERICA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY TWO BILLION CANADIAN DOLLARS ONE POINT FIVE TWO BILLION U. S. DOLLARS OF SIX POINT FIVE PERCENT BONDS DUE JUNE FIRST TWO THOUSAND FOUR THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES THIS BANK HOLDING COMPANY NAMED GERRY CAMERON AS CHIEF EXECUTIVE OFFICER AND A DIRECTOR MR. CAMERON FIFTY FIVE YEARS OLD WAS CHIEF OPERATING OFFICER HE SUCCEEDS ROGER BREEZLEY FIFTY FIVE WHO REMAINS CHAIRMAN HONG KONG HOTEL OCCUPANCY RATES JUMPED FIVE PERCENTAGE POINTS IN NINETEEN NINETY THREE TO EIGHTY SEVEN PERCENT OF CAPACITY THE HIGHEST TARIFF HOTELS HAD RATES OF EIGHTY PERCENT IN THE YEAR UP TWO PERCENTAGE POINTS WHILE THE NEXT HIGHEST GRADE HAD OCCUPANCY OF NINETY PERCENT UP FOUR POINTS THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTION AGAINST SIXTEEN INDIVIDUALS FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS JOHN ENGELSKIRGER WILTON CONNECTICUT A BRANCH OFFICE MANAGER WAS CENSURED FOR FAILING TO REASONABLY SUPERVISE A BROKER WHO MADE UNSUITABLE INVESTMENTS FOR A CUSTOMER HE HAD DENIED THE CHARGES ALLEN DERFLINGER FALLS CHURCH VIRGINIA A FORMER BROKER WAS BARRED FOR MISAPPROPRIATING FUNDS FROM TWO CUSTOMER ACCOUNTS AS WELL AS SALES PRACTICE MISCONDUCT ANNA MARIA LUCIA DONATO PHILADELPHIA A FORMER NONREGISTERED EMPLOYEE WAS BARRED FOR MISAPPROPRIATING FUNDS AND PROPERTY FROM HER MEMBER FIRM UNLESS OTHERWISE NOTED NONE OF THE PARTIES COULD BE REACHED OR HAD ANY COMMENT ADA MICHELLE GARVIN STATEN ISLAND N. Y. A FORMER NON REGISTERED SERVICE REPRESENTATIVE WAS BARRED FOR MISAPPROPRIATING PETTY CASH FUNDS JAMES J. HARRINGTON FORT LAUDERDALE FLORIDA A BROKER WAS BARRED TWO MONTHS FOR FAILING TO PAY WITHIN THIRTY DAYS A THIRTY ONE THOUSAND TWO HUNDRED SEVENTY EIGHT DOLLAR ARBITRATION AWARD HE NEITHER ADMITTED NOR DENIED CHARGES GUY D. ROBINSON BROOKLYN N. Y. A FORMER OPTIONS TRADING RIGHT HOLDER WAS BARRED FOUR MONTHS FOR SIGNING A SPECIALIST'S CLEARING NUMBER ON A QUESTIONED TRADE FORM WITHOUT AUTHORIZATION AND FAILING TO DISCLOSE CERTAIN FACTS TO HIS EMPLOYER GREGORY EDWARD NORLANDER CAMARILLO CALIFORNIA A FORMER BROKER WAS BARRED FOUR WEEKS FOR ASKING A CUSTOMER TO MAKE A MISLEADING STATEMENT TO HIS OFFICE MANAGER AND FOR MISLEADING HIS MANAGER ABOUT A PERSONAL PAYMENT MADE TO A CUSTOMER MR. NORLANDER DIDN'T ADMIT OR DENY FINDINGS LOUIS FRANCIS ALBANESE FAIRFIELD CONNECTICUT A BROKER WAS FINED FIFTEEN THOUSAND DOLLARS AND SUSPENDED ONE MONTH WITHOUT ADMITTING OR DENYING THAT HE MADE EXCESSIVE AND UNSUITABLE TRADES IN TWO ACCOUNTS LEONARD W. KRANE LOUISVILLE KENTUCKY A FORMER BROKER WITH A. G. EDWARDS AND SONS INCORPORATED AND SHEARSON LEHMAN HUTTON INCORPORATED WAS BARRED FIVE YEARS WITHOUT ADMITTING OR DENYING THAT IN NINETEEN EIGHTY NINE TO NINETY HE ENTERED TRADES THAT IMPROPERLY AFFECTED THE PRICE OF WHEELING PITTSBURGH STEEL CORPORATION STOCK AND FAILED TO SECURE THE BEST PRICE FOR HIS CUSTOMERS THE EXCHANGE SAID DURING THE PERIOD MR. KRANE AND HIS CUSTOMERS HELD ABOUT NINE PERCENT OF THE FREELY TRADED SHARES OF WHEELING PITTSBURGH WHICH WAS OPERATING UNDER CHAPTER ELEVEN BANKRUPTCY PROCEEDINGS THE EXCHANGE SAID ON AT LEAST NINETY FIVE OCCASIONS MR. KRANE ENTERED ORDERS FOR THE STOCK AT OR NEAR THE CLOSE OF TRADING AT PRICES AT OR ABOVE THE PREVAILING QUOTE IN ORDER TO ARTIFICIALLY MAINTAIN THE MARKET PRICE OR PREVENT A DECREASE IN VALUE OF THE POSITIONS THE EXCHANGE SAID THAT TO DATE COMPLAINTS AGAINST MR. KRANE HAVE RESULTED IN SETTLEMENTS TOTALING ABOUT ONE HUNDRED TWO THOUSAND FIVE HUNDRED DOLLARS ROBERT L. FOX COLUMBUS OHIO A FORMER BRANCH OFFICE MANAGER WAS FINED FIVE THOUSAND DOLLARS FOR FAILING TO SUPERVISE A BROKER WHO MADE UNSUITABLE TRADES IN ELDERLY CUSTOMERS' ACCOUNTS JOHN C. MCCLOSKEY HADDONFIELD N. J. A FORMER BROKER WAS BARRED EIGHT MONTHS FOR SPECULATIVE OPTIONS TRADES IN AN ACCOUNT RESULTING IN LOSSES OF ABOUT TWENTY NINE THOUSAND DOLLARS ROBERT CARL JENICAN YORBA LINDA CALIFORNIA A FORMER BROKER WAS BARRED FOR MISAPPROPRIATING CUSTOMER FUNDS AND ISSUING FALSE ACCOUNT STATEMENTS TO CUSTOMERS JOHN JAMES NOLAN BRONX N. Y. A FORMER NON REGISTERED EMPLOYEE WAS BARRED WITHOUT ADMITTING OR DENYING MISAPPROPRIATING TWENTY THREE THOUSAND DOLLARS FROM HIS FIRM KAREN BUTLER PALISADES PARK N. J. WAS BARRED FOR MISAPPROPRATING FUNDS FROM HER EMPLOYER STEPHEN TUCKER COTTRELL WALTHAM MASSACHUSETTS A FORMER TRAINEE WAS BARRED ONE YEAR WITHOUT ADMITTING OR DENYING USING UNAUTHORIZED ASSISTANCE WHILE TAKING THE GENERAL SECURITIES BROKER QUALIFYING EXAM GREGORY JAY PARKS LANSING MICHIGAN A FORMER BROKER WAS BARRED FOUR MONTHS FOR MISCONDUCT IN HANDLING HIS PERSONAL SECURITIES ACCOUNT AT HIS MEMBER FIRM HE DIDN'T ADMIT OR DENY ALLEGATIONS INTERACTIVE NETWORK INCORPORATED SAID IT WILL LAUNCH A TEST TO DETERMINE IF ITS SUBSCRIBERS ARE INTERESTED IN GAME COMPETITIONS OVER VIDEO GAME MAKER SEGA ENTERPRISES LIMITED'S CABLE TELEVISION CHANNEL AS PART OF THE TEST LIBRARIES OF VIDEO GAMES WILL BE DELIVERED TO HOME SUBSCRIBERS OVER CABLE SHARES IN INTERACTIVE NETWORK WHICH OFFERS A SUBSCRIPTION SERVICE THAT ENABLES VIEWERS TO PLAY ALONG WITH T. V. GAME SHOWS AND SPORTS EVENTS ROSE ONE POINT ONE TWO FIVE DOLLARS TO TEN DOLLARS AND FIFTY CENTS IN OVER THE COUNTER TRADING YESTERDAY SILICON GRAPHICS INCORPORATED'S FOUNDING CHAIRMAN JAMES H. CLARK RESIGNED FROM THE COMPANY AND ITS BOARD LATE YESTERDAY SAYING HE WANTS TO START HIS OWN INTERACTIVE T. V. SOFTWARE COMPANY THE MOVE FOLLOWS MORE THAN A YEAR OF SPECULATION AMONG INSIDERS ABOUT A RECENT RIFT BETWEEN MR. CLARK FORTY NINE YEARS OLD AND THE CHIEF EXECUTIVE HE HAND PICKED IN NINETEEN EIGHTY FOUR EDWARD R. MCCRACKEN WHO REMAINS AT HIS POST AND WILL CONTINUE TO OVERSEE DAY TODAY OPERATIONS MR. CLARK WHO SET UP SILICON GRAPHICS' HIGHLY TOUTED MULTIMEDIA JOINT VENTURES WITH TIME WARNER INCORPORATED AND NINTENDO WAS SAID TO BE PUSHING THE MOUNTAIN VIEW CALIFORNIA COMPANY TO EXPAND ITS GRAPHIC CHIP TECHNOLOGY INTO THE LOW PRICED VIDEO GAME MARKET MEANWHILE MR. MCCRACKEN WAS THOUGHT TO PLACE A HIGHER PRIORITY ON THE EXISTING BUSINESS OF SELLING FANCY WORKSTATIONS TO ENGINEERS INSIDE THE COMPANY THE OUTSPOKEN MR. CLARK FREQUENTLY CRITICIZED MR. MCCRACKEN FOR NOT AGGRESSIVELY PURSUING NEW MARKETS IN AN INTERVIEW MR. CLARK SAID HE UNDERSTOOD WHY AN ALREADY FAST GROWING COMPANY WOULD BE RELUCTANT TO JUMP INTO NEW MARKETS HE ALSO POOH POOHED RUMORS ABOUT HIS PERSONAL RIFT WITH MR. MCCRACKEN AS QUOTE GREATLY EXAGGERATED QUOTE HE ADDED ANYTIME YOU'VE GOT A CHAIRMAN FOUNDER AND A C. E. O. WITH ANY KIND OF RESPONSIBILITY THERE'S GOING TO BE THAT KIND OF SPECULATION SILICON GRAPHICS WILL NAME A SUCCESSOR WHEN ITS BOARD MEETS NEXT MONDAY TUESDAY AND WEDNESDAY THE COMPANY ANNOUNCED MR. CLARK'S DEPARTURE AFTER THE CLOSE YESTERDAY TWO DAYS AFTER MR. CLARK ALERTED FELLOW BOARD MEMBERS IN AN EVENING MEETING IN AFTER MARKET TRADING ON THE NEW YORK STOCK EXCHANGE SILICON GRAPHICS SHARES SLIPPED TO TWENTY FOUR DOLLARS DOWN SEVENTY FIVE CENTS OR THREE PERCENT SALOMON BROTHERS ANALYST JEFF CANIN SPECULATED THAT INVESTORS OVERREACTED ERRONEOUSLY THINKING THAT MR. CLARK TRADITIONALLY THE SPOKESMAN FOR THE COMPANY WAS ALSO RESPONSIBLE FOR DAY TO DAY OPERATIONS WHILE ANALYSTS HAD EXPECTED MR. CLARK TO STEP DOWN AS CHAIRMAN THEY WERE SURPRISED THAT HE TOOK THE FURTHER STEP OF RELINQUISHING HIS SEAT ON THE BOARD MR. CLARK SAID HE DECIDED TO DO THAT SO HE COULD CONCENTRATE ON HIS NEW VENTURE HE HAD MULLED QUITTING FOR AT LEAST SIX MONTHS BUT DECIDED TO ACT AFTER EXTENDED MEDIA COVERAGE OF WHAT HE CALLS THE INFORMATION SUPER HYPE WAY I KEEP THINKING THE ONE THING THAT ISN'T SERIOUSLY BEING ADDRESSED HERE IS APPLICATIONS SOFTWARE WHICH ALLOWS CONSUMERS TO USE THEIR TELEVISIONS TO SHOP GATHER ON LINE NEWS OR TO GET VIDEOS ON DEMAND AMONG OTHER THINGS I WANT TO GRAB THAT OPPORTUNITY HE WENT TO GREAT LENGTHS TO SAY HE WOULD NOT COMPETE WITH SILICON GRAPHICS AS STEVE JOBS DID WHEN HE LEFT APPLE COMPUTER INCORPORATED TO FORM NEXT INCORPORATED I'M NOT GOING TO DO THAT I LOVE THIS COMPANY IT'S LIKE I'VE BUILT A HUGE FORTRESS HERE WHAT AM I GOING TO DO STEP OUTSIDE AND TURN A CANNON ON IT QUOTE MORE GAINS IN THE INTEREST RATE SENSITIVE GROUP A SURGE IN BOND PRICES AND SOME ENCOURAGING EARNINGS REPORTS TOOK SMALL COMPANY STOCKS BACK NEAR RECORD LEVELS FIRST INDIANA INDIANAPOLIS ROSE THREE QUARTERS TO TWENTY THREE AND ONE HALF B. S. B. BANCORP BINGHAMTON N. Y. ADDED THREE QUARTERS TO TWENTY THREE AND THREE QUARTERS AND SUMMIT BANCORP CHATHAM N. J. CLIMBED ONE QUARTER TO TWENTY ONE AND ONE QUARTER EARNINGS ALSO WERE KEY YESTERDAY AND SOME COMPANIES FARED VERY WELL FOLLOWING CORPORATE PROFIT REPORTS DAMARK INTERNATIONAL MINNEAPOLIS CLIMBED TWO AND THREE QUARTERS TO TWENTY FOUR AND ONE QUARTER FOLLOWING ITS ANNOUNCEMENT LATE WEDNESDAY THAT FOURTH QUARTER EARNINGS ROSE THE MARKETER OF GENERAL MERCHANDISE SAID NET INCOME FOR THE PERIOD WAS THIRTY FOUR CENTS A SHARE COMPARED WITH SEVEN CENTS A YEAR EARLIER EARNINGS FOR THE LATEST QUARTER CAME IN ABOVE THE TWENTY FIVE CENTS FORECAST BY ANALYSTS AUTOCAM A SOUTHEAST KENTWOOD MICHIGAN METAL ALLOY MAKER SOARED TWO TO EIGHTEEN AND ONE HALF ON IMPROVED FISCAL SECOND QUARTER EARNINGS OF TWENTY ONE CENTS A SHARE INCLUDING CHARGES COMPARED WITH TWELVE CENTS A YEAR EARLIER INTERTAN N. Y. S. E. ROSE TWO AND FIVE EIGHTHS TO SEVEN AND THREE EIGHTHS THE BARRIE ONTARIO SELLER OF CONSUMER ELECTRONICS SAID ITS FISCAL SECOND QUARTER NET LEAPT TO NINETY SEVEN CENTS A SHARE FROM TWO CENTS A YEAR EARLIER CONTINUUM N. Y. S. E. AN AUSTIN TEXAS SOFTWARE CONCERN ROSE ONE TO TWENTY AND THREE EIGHTHS THE COMPANY SAID ITS FISCAL THIRD QUARTER NET WAS TWENTY FOUR CENTS A SHARE ON MORE SHARES COMPARED WITH A LOSS OF TWO CENTS LAST YEAR EVEN WITH DISAPPOINTING EARNINGS INACOM STILL MANAGED TO FINISH TWO AND ONE QUARTER HIGHER AT SIXTEEN AND SEVEN EIGHTHS THE OMAHA NEBRASKA INFORMATION TECHNOLOGY CONCERN SAID THAT ALTHOUGH FOURTH QUARTER NET OF THIRTY ONE CENTS A SHARE FELL SHORT OF THE FORTY FIVE CENTS REPORTED LAST YEAR AND ANALYSTS' PROJECTIONS QUOTE WE'RE SEEING SIGNS THAT OUR REVENUES ARE TRENDING UP QUOTE IF YOU MAKE A MISTAKE FROM AN EARNINGS STANDPOINT THIS MARKET WILL TEAR YOU APART SAID BOB MCINTYRE A SENIOR VICE PRESIDENT OF EQUITY TRADING AT PRINCIPAL EPPLER GUERIN AND TURNER ONE EXAMPLE WAS HARRY'S FARMERS MARKET WHICH PLUNGED EIGHT AND THREE QUARTERS OR THIRTY FIVE PERCENT TO SIXTEEN AND ONE HALF LATE WEDNESDAY THE ATLANTA OPERATOR OF SUPERMARKET MEGASTORES SAID IT EXPECTS TO REPORT A PRETAX LOSS OF FOUR POINT FIVE MILLION DOLLARS TO FIVE POINT FIVE MILLION DOLLARS FOR ITS FISCAL FOURTH QUARTER ENDING FEBRUARY SECOND SOFTWARE SPECTRUM FELL FIVE AND THREE QUARTERS OR TWENTY FIVE PERCENT TO SEVENTEEN AFTER A DECLINE IN FISCAL THIRD QUARTER NET THE GARLAND TEXAS SOFTWARE RESELLER SAID EARNINGS FOR THE PERIOD FELL TO FORTY ONE CENTS A SHARE FROM FORTY EIGHT CENTS A YEAR EARLIER PIPER JAFFRAY CUT ITS RATING ON SOFTWARE SPECTRUM TO REASONABLY PRICED FROM BUY CITING THE DISAPPOINTING EARNINGS REPORT SILICONIX A SANTA CLARA CALIFORNIA SEMICONDUCTOR COMPANY FELL TWO OR TWENTY TWO PERCENT TO SEVEN AND ONE QUARTER THE COMPANY SAID ITS NINETEEN NINETY THREE OPERATING PROFIT WAS SIXTY FOUR CENTS A SHARE IT HAD NET INCOME OF FORTY SIX CENTS FOR NINETEEN NINETY TWO NEW ISSUE TELULAR JUMPED TO TWENTY THREE FROM ITS OFFERING PRICE OF TWENTY DOLLARS A SHARE YESTERDAY THE TELECOMMUNICATIONS COMPANY BASED IN BUFFALO GROVE ILLINOIS DESIGNS DEVELOPS MANUFACTURES AND MARKETS PRODUCTS BASED ON ITS PROPRIETARY INTERFACE TECHNOLOGY O'SULLIVAN INDUSTRIES HOLDINGS N. Y. S. E. CLOSED AT TWENTY FOUR AND ONE EIGHTH UP TWO AND ONE EIGHTH FROM ITS INITIAL PRICE LATE YESTERDAY OF TWENTY TWO DOLLARS A SHARE THE LAMAR MISSOURI MAKER OF READY TO ASSEMBLE FURNITURE SAID ALL OF THE SHARES ARE BEING OFFERED BY T. E. ELECTRONICS A TANDY SUBSIDIARY ANOTHER NEW OFFERING PLAYTEX PRODUCTS LED THE BIG BOARD'S MOST ACTIVE LIST WITH SEVEN POINT NINE MILLION SHARES SHARES OF THE PERSONAL CARE PRODUCTS COMPANY STAMFORD CONNECTICUT CLOSED AT TWELVE AND THREE QUARTERS DOWN SLIGHTLY FROM THEIR INITIAL PRICE OF THIRTEEN DOLLARS A SHARE YESTERDAY AFTER THE CLOSE PLAYTEX SAID SOME OF THE PROCEEDS FROM THE OFFERING ARE EXPECTED TO GO TOWARD DEBT REDUCTION OBSERVERS SAID YESTERDAY'S FOLLOW THROUGH TO WEDNESDAY'S RALLY SHOWED THAT LOSSES ON MONDAY AND TUESDAY WERE JUST A TIMEOUT FOR SMALLER STOCKS AFTER A STRONG RUN LAST WEEK THE RUSSELL TWO THOUSAND INDEX WHICH TRACKS THE PERFORMANCE OF SMALL COMPANY STOCKS TRADED ON THE NASDAQ STOCK MARKET AND ON THE MAJOR EXCHANGES ROSE ZERO POINT EIGHT TWO OR ZERO POINT THREE ONE PERCENT TO TWO HUNDRED SIXTY THREE POINT SIX SIX JUST BELOW ITS CLOSING RECORD OF TWO HUNDRED SIXTY THREE POINT EIGHT OH SET FRIDAY NASDAQ ISSUES ALSO HAD A GOOD DAY THE NASDAQ COMPOSITE INDEX JUMPED FOUR POINT OH EIGHT OR ZERO POINT FIVE TWO PERCENT TO END AT SEVEN HUNDRED NINETY TWO POINT EIGHT EIGHT WITHIN STRIKING DISTANCE OF ITS RECORD OF SEVEN HUNDRED NINETY FOUR POINT TWO EIGHT SET FRIDAY TRADERS SAID LOWER INTEREST RATES KEPT THE FINANCIAL GROUP FIRM THE TREASURY'S LONG BOND ENDED NEARLY FIVE EIGHTHS POINT HIGHER WITH ITS YIELD DOWN TO SIX POINT TWO SIX PERCENT KATRINA BLECHER A VICE PRESIDENT AND A SENIOR FINANCIAL SERVICES ANALYST AT GRUNTAL AND COMPANY SAID A SELL OFF IN THE INTEREST RATE SENSITIVE SECTOR HAD OCCURRED LAST WEEK AS EARNINGS CAME IN ABOVE EXPECTATIONS MOMENTUM PLAYERS HAD BEEN BUYING IN ADVANCE OF THE EARNINGS AND HAD DRIVEN UP THE GROUP MS. BLECHER SAID THE ISSUES IN THE SECTOR STARTED TRENDING DOWN WHEN THE EARNINGS CAME OUT BUT ARE NOW BACK UP TO THE LEVELS THEY SHOULD BE ANALYSTS HAVE SAID RECENTLY THAT IN ORDER FOR SMALL CAP STOCKS TO CONTINUE TO MOVE HIGHER THE LEADERSHIP WOULD HAVE TO EXPAND PAST THE TECHNOLOGY GROUP THE TYPICAL MARKET LEADERS THE STRENGTH OF THE FINANCIAL STOCKS LENDS CREDENCE TO THE FAITH IN THE BULL MARKET MS. BLECHER ADDED ADVANCING NASDAQ ISSUES OUTRAN DECLINERS ONE THOUSAND SIX HUNDRED THIRTY ONE TO ONE THOUSAND FOUR HUNDRED FIFTY SEVEN ON NASDAQ NATIONAL MARKET VOLUME OF TWO HUNDRED SIXTY FIVE MILLION TWO HUNDRED NINETY THOUSAND FIVE HUNDRED SHARES AND TOTAL VOLUME OF THREE HUNDRED FOURTEEN MILLION FOUR HUNDRED NINETY ONE THOUSAND WEDNESDAY NATIONAL MARKET VOLUME HIT TWO HUNDRED SIXTY NINE MILLION FOUR HUNDRED FIFTY ONE THOUSAND NINE HUNDRED SHARES AND TOTAL VOLUME WAS THREE HUNDRED SIXTEEN MILLION FOUR HUNDRED NINETY FIVE THOUSAND NASDAQ NATIONAL MARKET STOCKS THAT SET HIGHS FOR THE YEAR TO DATE TOTALED ONE HUNDRED EIGHT WHILE EIGHTEEN HIT LOWS M. C. I. COMMUNICATIONS CORPORATION IS SITTING PRETTY WITH A BOATLOAD OF CASH AND A BOLD TWENTY BILLION DOLLAR NETWORK EXPANSION PLAN BUT THE COMPANY'S FUTURE COULD TURN UGLY IN A SHOWDOWN WITH THE BABY BELLS M. C. I. CHAIRMAN BERT C. ROBERTS JUNIOR VOWS TO USE AN ENLARGED M. C. I. NETWORK TO QUOTE WAGE WAR QUOTE ON THE REGIONAL BELL COMPANIES' LOCAL PHONE MONOPOLIES AND SLASH THE ACCESS FEES THEY CHARGE FOR COMPLETING LONG DISTANCE M. C. I. CALLS M. C. I. SAYS THESE FEES SIPHON AS MUCH AS FORTY FIVE CENTS OF EVERY REVENUE DOLLAR M. C. I. TAKES IN M. C. I. PLANS TO BUILD FIBER OPTIC SYSTEMS INITIALLY IN TWENTY U. S. CITIES FOR TWO BILLION DOLLARS SO CORPORATE CUSTOMERS CAN HOOK DIRECTLY TO ITS NETWORK BYPASSING THE REGIONAL BELL COMPANIES EVENTUALLY M. C. I. WHICH LATELY HAS BEEN FLUSH WITH HUGE GAINS IN THE CONSUMER AND TOLL FREE EIGHT HUNDRED MARKET WILL EXTEND THE LOCAL NETWORKS TO MORE THAN TWO HUNDRED U. S. METROPOLITAN AREAS AS PART OF A TWENTY BILLION DOLLAR GLOBAL PROJECT IT CALLS NETWORKMCI BUT THE BABY BELLS' HOLD ON LOCAL TELEPHONE SERVICE IS FORMIDABLE AND THEY HAVE AMBITIOUS PLANS OF THEIR OWN FOR GAINING NEW ENTRY INTO M. C. I.'S LONG DISTANCE TURF IN ADDITION M. C. I. MUST WAGE ITS MOST AGGRESSIVE NEW STRATEGY IN YEARS WITHOUT HAVING YET LINED UP FULL FINANCIAL BACKING POTENTIAL PARTNERS AMONG BIG CABLE COMPANIES ARE ALLYING LEFT AND RIGHT WITH THE BABY BELLS AND EVEN AS M. C. I. TURNS ITS SIGHTS ON LOCAL SERVICE IT FACES TOUGHER COMPETITION IN LONG DISTANCE FROM AMERICAN TELEPHONE AND TELEGRAPH WHICH SHOWS SIGNS OF A REBOUND STILL WASHINGTON BASED M. C. I. WHOSE INITIALS STOOD FOR MONEY COMIN' IN IN THE VIEW OF ITS LATE FOUNDER WILLIAM MCGOWAN HAS SIGNIFICANT STRENGTHS ITS LONG DISTANCE BUSINESS IS CURRENTLY GROWING AT MORE THAN TWICE THE INDUSTRY RATE THANKS TO HUGE GAINS FROM THE FRIENDS AND FAMILY CONSUMER SERVICE AND NEW CORPORATE BUSINESS IN THE TOLL FREE EIGHT HUNDRED AND DATA TRANSMISSION MARKETS THAT POINT WAS UNDERSCORED YESTERDAY BY M. C. I.'S FOURTH QUARTER EARNINGS REPORT WHOSE STRENGTH WAS DISGUISED BY A CHARGE YESTERDAY M. C. I. SAID NET INCOME FELL BY THIRTY THREE PERCENT TO ONE HUNDRED SEVEN MILLION DOLLARS OR EIGHTEEN CENTS A SHARE FROM ONE HUNDRED SIXTY MILLION DOLLARS OR THIRTY CENTS A SHARE A YEAR EARLIER ON DECEMBER FIFTEENTH M. C. I. ANNOUNCED IT WOULD TAKE A CHARGE OF ONE HUNDRED FIFTY MILLION DOLLARS AFTER RESTRUCTURING THE COMPANY CONSOLIDATING FACILITIES AND STREAMLINING ITS WORK FORCE MINUS THAT CHARGE NET WOULD HAVE GROWN TO ONE HUNDRED NINETY NINE MILLION DOLLARS AN INCREASE OF MORE THAN TWENTY FOUR PERCENT M. C. I. SAID REVENUE GREW MORE THAN THIRTEEN PERCENT TO THREE POINT ONE THREE BILLION DOLLARS FROM TWO POINT SEVEN SIX BILLION DOLLARS A YEAR EARLIER FOR THE YEAR M. C. I.'S NET INCOME FELL FOUR POINT FOUR PERCENT TO FIVE HUNDRED EIGHTY TWO MILLION DOLLARS OR ONE DOLLAR AND FOUR CENTS A SHARE FROM SIX HUNDRED NINE MILLION DOLLARS OR ONE DOLLAR AND ELEVEN CENTS A SHARE A YEAR EARLIER BECAUSE OF THE QUARTERLY CHARGE PLUS EARLY DEBT RETIREMENT AND FEDERAL TAX LAW CHANGES MINUS THESE ITEMS NINETEEN NINETY THREE NET WOULD HAVE TOTALED SEVEN HUNDRED THIRTY ONE MILLION DOLLARS A TWENTY PERCENT INCREASE REVENUE GREW ALMOST THIRTEEN PERCENT TO ELEVEN POINT NINE TWO BILLION DOLLARS FROM TEN POINT FIVE SIX BILLION DOLLARS IN NASDAQ STOCK MARKET TRADING M. C. I. SHARES FELL TWENTY FIVE CENTS OR ZERO POINT NINE PERCENT TO CLOSE AT TWENTY EIGHT DOLLARS YESTERDAY M. C. I. ALSO HAS THE LOWEST COST STRUCTURE OF ANY CARRIER THAT ADVANTAGE WOULD BE ENHANCED IF M. C. I. DELIVERS ON ITS PLANS TO BUILD THE NEW LOCAL NETWORKS SAYS JACK B. GRUBMAN OF PAINEWEBBER INCORPORATED HE ESTIMATES THAT THE TWO BILLION DOLLARS M. C. I. PLANS TO SPEND OVER THE NEXT FOUR YEARS WILL INCREASE ITS DEPRECIATION COSTS BY ABOUT TEN PERCENT A YEAR BUT M. C. I. WOULD HAVE TO REDUCE THE ACCESS FEES IT PAYS TO THE BABY BELLS BY ONLY TWO PERCENT TO OFFSET THAT INCREASE HE ESTIMATES A MERE FIVE PERCENT REDUCTION IN THE MORE THAN FIVE BILLION DOLLARS A YEAR THAT M. C. I. SPENDS ON ACCESS FEES MOREOVER WOULD LET THE NEW M. C. I. LOCAL NETWORKS PAY FOR THEMSELVES IN ONLY A FEW YEARS EVEN IF OTHER CARRIERS DON'T SIGN UP TO USE THEM MR. GRUBMAN SAYS ALTHOUGH IT WAS ANNOUNCED ONLY RECENTLY M. C. I.'S PLOT TO TAKE ON THE BABY BELLS CAME TOGETHER IN LATE AUGUST M. C. I.'S MR. ROBERTS WAS READY TO CHART A NEW COURSE HE WAS THE KEY STRATEGIST IN THE NINETEEN SEVENTIES WHO DEVISED THE IDEA FOR THE SWITCHED COMMUNICATIONS SERVICE THAT EVENTUALLY SHATTERED THE MONOPOLY OF A. T. AND T. IN THE MID NINETEEN EIGHTIES HE PUSHED M. C. I. TO BUY OLD WESTERN UNION CORPORATION TELEGRAPH CONDUITS GIVING IT CRUCIAL RIGHTS OF WAY IT WOULD LATER NEED TO RUN FIBER IN HUNDREDS OF U. S. CITIES AND TOWNS SERVED BY LOCAL PHONE COMPANIES ONE DAY IN LATE AUGUST MR. ROBERTS PHONED HIS TOP MARKETING EXECUTIVE GERRY TAYLOR THE KEY FORCE BEHIND M. C. I.'S FRIENDS AND FAMILY CAMPAIGN AND SUMMONED HIM TO THE ROBERTS HOUSE IN ANNAPOLIS MARYLAND ON CHESAPEAKE BAY ON THE WAY MR. TAYLOR'S NEW PORSCHE COLLIDED WITH A LUMBER TRUCK HE HAD THE TRUCK DRIVER PUSH THE TOTALED CAR TO THE SIDE OF THE ROAD AND A BACKUP CAR FROM M. C. I. TOOK HIM THE REST OF THE WAY OVER THE COURSE OF THE DAY THE TWO HAMMERED OUT A COLLISION COURSE OF THEIR OWN THEY CODE NAMED THE NEW PLAN PROJECT DESTINY IT INCLUDED A MAJOR OVERHAUL IN M. C. I. MANAGEMENT WHICH LEFT MR. TAYLOR IN DAILY CONTROL OF NINETY PERCENT OF M. C. I.'S BUSINESSES AND THE BLUEPRINT FOR M. C. I.'S TWENTY BILLION DOLLAR PLAN TO EXPAND ITS NETWORK THEY'LL GET HELP FROM THE FOUR POINT THREE BILLION DOLLARS THAT BRITISH TELECOMMUNICATIONS P. L. C. PLANS TO INVEST IN THE COMPANY FOR A TWENTY PERCENT STAKE THE SIX YEAR QUOTE NETWORKMCI QUOTE PROJECT ESSENTIALLY DOUBLES M. C. I.'S CAPITAL SPENDING PROGRAM AND CALLS FOR THE INSTALLATION OF HIGH SPEED SWITCHING AND FIBER OPTIC TRANSMISSION SYSTEMS IT ALSO WILL HAVE M. C. I. SEEK WIRELESS SERVICES PARTNERS AND BUILD LOCAL PHONE NETWORKS BUT ONE KEY PARTNER M. C. I. HAD HOPED FOR CABLE TELEVISION COMPANIES SOON LINED UP WITH BABY BELLS M. C. I. EXECUTIVES SAY THEY WERE NEGOTIATING TO SET UP A JOINT VENTURE WITH CABLE GIANT TELE COMMUNICATIONS INCORPORATED ONLY TO HAVE T. C. I. TURN AROUND AND ANNOUNCE A DEAL WITH BELL ATLANTIC CORPORATION THE GIANT BELL ATLANTIC T. C. I. COMBINATION WILL GIVE THE TWO COMPANIES ACCESS TO TWENTY FIVE MILLION HOMES ABOUT TEN MILLION MORE HOMES THAN M. C. I.'S CUSTOMER BASE BELL ATLANTIC AND T. C. I. COULD VERY WELL LINK THEIR OWN FACILITIES IN A NATIONAL LONG DISTANCE NETWORK U. S. WEST INCORPORATED AND SOUTHWESTERN BELL CORPORATION ALSO ARE TEAMING WITH CABLE COMPANIES WHOSE NETWORKS COULD BE AN IMPORTANT PART OF NEW LONG DISTANCE NETWORKS TO RIVAL M. C. I. THE BABY BELLS HAVE BEEN BARRED FROM THE LUCRATIVE MARKET IN THE DECADE SINCE THEY WERE FORMED IN THE BREAKUP OF THE OLD A. T. AND T. MANY INDUSTRY EXPERTS EXPECT THE BARRIERS TO FALL WITHIN A FEW YEARS WHEN THEY DO LIFE WILL BE VERY TOUGH FOR M. C. I. PREDICTS JEFFREY MILLER A PARTNER SPECIALIZING IN TELECOMMUNICATIONS AT ANDERSEN CONSULTING M. C. I. DOESN'T OWN THE LOCAL PHONE CUSTOMERS THE WAY THE LOCAL PHONE COMPANIES DO THE BELLS ARE TRIMMING THEIR FLABBY OPERATIONS AND TAKING MULTIBILLION DOLLAR CHARGES TO IMPOSE MASSIVE WORK FORCE CUTS AND SHUT UNNEEDED FACILITIES THEY MAY USE THE EXTRA PROFITS AND LEANER OPERATIONS FROM THESE CUTBACKS TO DISARM THE NIMBLE M. C. I. AND OTHER RIVALS THE REGIONAL BELL COMPANIES WOULD ENJOY NUMEROUS ADVANTAGES AS LONG DISTANCE PLAYERS NOT THE LEAST OF WHICH ARE THE PHONE LINES THAT UMBILICALLY TIE EACH LOCAL MA BELL TO CALLERS EXPERTS SUCH AS MR. MILLER ENVISION BELL COMPANIES SUCH AS AMERITECH CORPORATION OR BELL ATLANTIC HAWKING THEIR LONG DISTANCE SERVICE IN NOTICES CONVENIENTLY INSERTED IN EACH MONTHLY PHONE BILL THE BELLS COULD ALSO OFFER LEAST COST ROUTING SERVICES TO CUSTOMERS USING THE PHONE COMPANY'S BIG COMPUTERS TO FIND THE CHEAPEST LONG DISTANCE ROUTE THAT COULD FURTHER DIVERT SOME TRAFFIC AWAY FROM M. C. I.'S NETWORK APPLE COMPUTER INCORPORATED SAID FOR THE FIRST TIME IT WANTS OTHER MANUFACTURERS TO BUILD PERSONAL COMPUTERS THAT RUN APPLE'S VAUNTED MACINTOSH SOFTWARE AT ITS ANNUAL SHAREHOLDERS MEETING ON WEDNESDAY MICHAEL SPINDLER APPLE'S CHIEF EXECUTIVE OFFICER TALKED OPENLY OF HIS EFFORTS TO PERSUADE OTHER P. C. MAKERS TO ESSENTIALLY SELL CLONES OF THE MACINTOSH YESTERDAY A SPOKESMAN FOR MR. SPINDLER SAID THE CUPERTINO CALIFORNIA COMPANY WAS IN ACTIVE TALKS AND EXPECTED TO SIGN AT LEAST ONE AGREEMENT BEFORE THE END OF THE YEAR BUT HE SAID APPLE HASN'T FINISHED WORK YET ON A PORTABLE VERSION OF THE MACINTOSH OPERATING SYSTEM APPLE SHARES CLOSED YESTERDAY AT THIRTY FOUR POINT ONE TWO FIVE DOLLARS UP SIXTY TWO POINT FIVE CENTS IN NASDAQ STOCK MARKET TRADING SINCE INTRODUCING THE MACINTOSH A DECADE AGO APPLE HAS BEEN THE SOLE SUPPLIER OF MACHINES THAT RUN ITS SOFTWARE BUT THE BENEFITS OF CONTROLLING BOTH HARDWARE AND SOFTWARE HAVE FADED IN RECENT YEARS ESPECIALLY AS A SOFTWARE PACKAGE FROM MICROSOFT CORPORATION CALLED WINDOWS HAS BLURRED SOME OF MACINTOSH'S BENEFITS IN THE MINDS OF MANY P. C. ENTHUSIASTS APPLE IS TRYING TO BOOST MACINTOSH'S POSITION BY CUTTING PRICES AND LICENSING SOFTWARE TO OTHERS COULD MAKE ITS APPROACH MORE POPULAR ENTHUSIASTS WELCOMED THE PROSPECT OF MACINTOSH CLONES QUOTE THEY HAVE TO DO IT THEY HAVE NO CHOICE QUOTE SAID DAVID WINER PRESIDENT OF USERLAND INCORPORATED WHICH SUPPLIES SOFTWARE FOR THE MACINTOSH BESIDES SPARKING THE CREATION OF MORE MACINTOSH SOFTWARE CLONES WOULD INCREASE THE VARIETY OF HARDWARE APPLE FOR INSTANCE HAS YET TO INTRODUCE A POCKET SIZE COMPUTER SUCH AS ONE SOLD BY HEWLETT PACKARD COMPANY BUT P. C. MAKERS SEEM UNDERWHELMED BY APPLE'S LICENSING OFFER MR. SPINDLER INDICATED APPLE HAD FAILED IN EARLIER EFFORTS TO PERSUADE MANUFACTURERS TO COUPLE MACINTOSH SOFTWARE WITH MACHINES BUILT AROUND INTEL CORPORATION'S PROCESSORS COMPAQ COMPUTER CORPORATION AND DELL COMPUTER CORPORATION ARE WIDELY BELIEVED TO BE AMONG THOSE WHO BRUSHED OFF APPLE BOTH COMPANIES DECLINED TO COMMENT AN INDUSTRY EXECUTIVE FAMILIAR WITH THE NEGOTIATIONS SAID INTERNATIONAL BUSINESS MACHINES CORPORATION ALSO REJECTED APPLE'S PLEA BUT AN I. B. M. SPOKESMAN SAID THE COMPUTER GIANT WOULD CONSIDER OFFERING MACINTOSH SOFTWARE AS AN OPTION TO CUSTOMERS WHO PURCHASE ITS POWER P. C. COMPUTERS IF APPLE COMPLIES WITH INDUSTRY STANDARDS MR. SPINDLER TOLD SHAREHOLDERS HE WANTS P. C. MAKERS TO CONSIDER EMBRACING THE MACINTOSH IN COMBINATION WITH THE NEW POWER P. C. PROCESSOR WHICH APPLE IS DEVELOPING WITH I. B. M. AND MOTOROLA INCORPORATED APPLE MAY BE A NUMBER OF YEARS LATE BECAUSE THERE'S SUCH AN ENTRENCHED BUSINESS IN MICROSOFT INTEL P. C.S SAID MAL RANSOM A VICE PRESIDENT AT PACKARD BELL ELECTRONICS COMPANY A BIG P. C. MAKER WE WOULD WANT TO MAKE SURE DEMAND EXISTED BEFORE IT MADE SENSE TO DIVERT OUR EFFORTS MR. SPINDLER ISN'T HELPING APPLE'S PROSPECTS BY DILLY DALLYING WITH PLANS FOR THE PROPOSED MACINTOSH CLONES SAY CRITICS BEFORE APPLE EARNS OUR ATTENTION WITH TALK OF CLONES IT HAS TO CONVINCE US IT WILL DO SOMETHING SIGNIFICANT IN TERMS OF LICENSING MACINTOSH SOFTWARE SAID STEVEN LEVY AUTHOR OF INSANELY GREAT A HISTORY OF THE MACINTOSH SO FAR APPLE ONLY HAS BEEN TEASING US A SPOKESMAN FOR MR. SPINDLER SAID APPLE WAS INTENT ON SHARING THE MACINTOSH SOFTWARE WITH OTHER P. C. MAKERS BUT THAT HE HASN'T DECIDED ON A SPECIFIC APPROACH YET LAURIE HAYS AND KYLE POPE CONTRIBUTED TO THIS ARTICLE MEDIA GENERAL INCORPORATED SAID FISCAL FOURTH QUARTER NET INCOME JUMPED TWENTY PERCENT ON CONTINUED IMPROVEMENT IN NEWSPAPER AND BROADCAST TELEVISION OPERATIONS FOR THE QUARTER ENDED DECEMBER TWENTY SIXTH THE RICHMOND VIRGINIA MEDIA COMPANY REPORTED EARNINGS OF NINE POINT ONE MILLION DOLLARS OR THIRTY FOUR CENTS A SHARE COMPARED WITH SEVEN POINT SIX MILLION DOLLARS OR TWENTY NINE CENTS A SHARE A YEAR EARLIER REVENUE ROSE FIVE POINT ONE PERCENT TO ONE HUNDRED FIFTY SIX POINT FIVE MILLION DOLLARS FROM ONE HUNDRED FORTY EIGHT POINT NINE MILLION DOLLARS J. STEWART BRYAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THAT EXCEPT FOR NEWSPRINT PRICING WHICH CONTINUES A DOWNWARD TREND ECONOMIC PROSPECTS APPEAR MORE FAVORABLE FOR NINETEEN NINETY FOUR THAN FOR THE PAST SEVERAL YEARS FOR THE YEAR NET INCOME ROSE TO TWENTY FIVE POINT SEVEN MILLION DOLLARS OR NINETY EIGHT CENTS A SHARE UP THIRTY FIVE PERCENT FROM NINETEEN MILLION DOLLARS OR SEVENTY THREE CENTS A SHARE IN THE YEAR EARLIER PERIOD REVENUE WAS UP FOUR PERCENT TO SIX HUNDRED POINT EIGHT MILLION DOLLARS IN COMPOSITE AMERICAN STOCK EXCHANGE TRADING MEDIA GENERAL SHARES WERE UNCHANGED AT TWENTY SEVEN POINT SIX TWO FIVE DOLLARS SCHERING PLOUGH CORPORATION SAID STRONG SALES OF NEW ALLERGY DRUGS HELPED TO LIFT FOURTH QUARTER EARNINGS THIRTEEN PERCENT TO ONE HUNDRED EIGHTY EIGHT POINT NINE MILLION DOLLARS OR NINETY EIGHT CENTS A SHARE FROM ONE HUNDRED SIXTY SEVEN POINT SEVEN MILLION DOLLARS OR EIGHTY FOUR CENTS A SHARE IN THE YEAR EARLIER PERIOD SALES ROSE SEVEN POINT TWO PERCENT TO ONE POINT OH SEVEN BILLION DOLLARS FROM NINE HUNDRED NINETY FOUR POINT FOUR MILLION DOLLARS FOR THE FULL YEAR THE MADISON N. J. DRUG COMPANY HAD NET INCOME OF SEVEN HUNDRED THIRTY POINT EIGHT MILLION DOLLARS OR THREE DOLLARS AND SEVENTY FIVE CENTS A SHARE UP ONE PERCENT FROM SEVEN HUNDRED TWENTY POINT FOUR MILLION DOLLARS OR THREE DOLLARS AND SIXTY CENTS A SHARE IN NINETEEN NINETY TWO THE NINETEEN NINETY THREE RESULTS INCLUDED A CHARGE OF NINETY FOUR POINT TWO MILLION DOLLARS OR FORTY EIGHT CENTS A SHARE FOR A NONCASH ACCOUNTING CHANGE FOR RETIREMENT BENEFITS WITHOUT THE CHARGE THE COMPANY SAID EARNINGS WOULD HAVE GROWN EIGHTEEN PERCENT SALES ROSE SEVEN PERCENT TO FOUR POINT THREE FOUR BILLION DOLLARS FROM FOUR POINT OH SIX BILLION DOLLARS SCHERING SAID SALES WOULD HAVE RISEN NINE PERCENT EXCLUDING THE EFFECTS OF FOREIGNCURRENCY EXCHANGE SCHERING SAID ITS DOMESTIC SALES OF PRESCRIPTION DRUGS ROSE TEN PERCENT IN THE YEAR LED BY ITS NEW CLARITIN MEDICINE FOR HAY FEVER AND ITS VANCENASE LINE OF ALLERGY PRODUCTS IT EXPECTS THAT NINETEEN NINETY FOUR QUOTE WILL ONCE AGAIN PRODUCE SOLID EARNINGS GROWTH QUOTE IN A DEPARTURE FROM LONG STANDING POLICY KAISER PERMANENTE THE BIG HEALTH MAINTENANCE ORGANIZATION WILL ALLOW ITS MEMBERS TO GET MEDICAL CARE FROM NON KAISER DOCTORS ITS DECISION TO PROVIDE WHAT ARE CALLED POINT OF SERVICE OPTIONS REFLECTS GROWING PRESSURE FROM EMPLOYERS TO REMOVE A MAJOR HURDLE THAT DISCOURAGES EMPLOYEES FROM CHOOSING H. M. O.S FOR THEIR HEALTH CARE MANY EMPLOYEES REJECT MANAGED CARE PLANS BECAUSE OF CONCERN THEY WILL HAVE TO END LONG STANDING RELATIONSHIPS WITH DOCTORS OR LOSE THE ABILITY TO SEEK SECOND OPINIONS FROM PHYSICIANS OUTSIDE THE HEALTH PLAN FOR KAISER IT IS ALSO AN EFFORT TO INCREASE ITS SHARE OF A COMPETITIVE MARKETPLACE QUOTE THIS IS A STEPPING STONE A WAY OF GRADUALLY INTRODUCING PEOPLE TO KAISER THAT DOESN'T HAVE THE FEAR FACTOR THAT SOMETIMES AN ANNUAL DECISION CAN HAVE QUOTE SAID LINDA ARMSTRONG MANAGER OF PRODUCT DEVELOPMENT FOR KAISER PERMANENTE'S NORTHEAST REGION IN HARTFORD CONNECTICUT UNDER THE ARRANGEMENTS MEMBERS MAY GET CARE FROM EITHER KAISER PHYSICIANS AND FACILITIES OR CHOOSE ANY DOCTOR OUTSIDE THE HEALTH PLAN THOSE WHO GO OUTSIDE THE PLAN WILL PAY A HIGHER SHARE OF THE MEDICAL BILL AND HIGHER DEDUCTIBLES PREMIUMS THAT EMPLOYERS PAY FOR THE POINT OF SERVICE OPTION WILL AVERAGE ABOUT TEN PERCENT HIGHER THAN FOR EMPLOYEES WHO AGREE TO GET ALL THEIR CARE WITHIN KAISER MICHAEL M. DUDLEY A VICE PRESIDENT WHO HEADS THE H. M. O.'S POINT OF SERVICE EFFORT SAID THE DECISION CAME AFTER SEVERAL YEARS OF DEBATE OVER CONCERNS THAT ALLOWING MEMBERS TO GO OUTSIDE THE PLAN WOULD COMPROMISE KAISER'S ABILITY TO MANAGE BOTH THE COST AND QUALITY OF ITS SERVICES BUT THE H. M. O. HAS LOST SOME CUSTOMERS WHO WANTED THE FLEXIBILITY OF POINT OF SERVICE AND MANY EMPLOYERS DON'T EVEN GIVE WORKERS THE CHOICE OF PLANS THAT LACK THE OPTION WE WERE LISTENING TO WHAT THE MARKET WAS SAYING AND DECIDED TO GO IN THIS DIRECTION HE SAID THE DECISION PREDATED THE CLINTON ADMINSTRATION'S HEALTH REFORM PLAN WHICH WOULD REQUIRE HEALTH PLANS TO OFFER SIMILAR FLEXIBILITY TO PROVIDE THE SERVICES KAISER IS ESTABLISHING ALLIANCES WITH TRADITIONAL INSURANCE COMPANIES IN SEVERAL U. S. REGIONS KAISER BASED IN OAKLAND CALIFORNIA ISN'T THE FIRST H. M. O. TO OFFER A POINT OF SERVICE OPTION BUT AS THE NATION'S LARGEST PREPAID HEALTH PLAN WITH SIX POINT SIX MILLION MEMBERS ITS ACTIONS HAVE ENORMOUS INFLUENCE IN THE HEALTH CARE MARKET SEPARATELY THE CALIFORNIA NURSES ASSOCIATION SAID ITS MEMBERS RATIFIED A THREE YEAR CONTRACT WITH KAISER ENDING THE POSSIBILITY OF A STRIKE AT KAISER'S NORTHERN CALIFORNIA HOSPITALS AND CLINICS COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE CANADIAN TRANSPORT MINISTER DOUGLAS YOUNG SAID HE INTENDS TO DESIGNATE AIR CANADA TO SERVE THE NEW KANSAI AIRPORT IN OSAKA GIVING THE MONTREAL CARRIER LONG SOUGHT ACCESS TO THE JAPANESE MARKET CANADIAN AIRLINES INTERNATIONAL A UNIT OF P. W. A. CORPORATION HAS BEEN THE ONLY CANADIAN CARRIER SERVING JAPAN THE CALGARY ALBERTA AIRLINE CALLED THE GOVERNMENT'S DECISION QUOTE EXTREMELY DISAPPOINTING QUOTE THE ANNOUNCEMENT IN OTTAWA CAME A DAY AFTER AIR CANADA SAID IT WOULD DROP LITIGATION THAT HAS BLOCKED FINANCIALLY TROUBLED CANADIAN AIRLINES FROM CONCLUDING A PROPOSED ALLIANCE WITH A. M. R. CORPORATION THE FORT WORTH TEXAS PARENT OF AMERICAN AIRLINES INDUSTRY OBSERVERS SPECULATE THAT AIR CANADA ABANDONED THE LEGAL FIGHT IN RETURN FOR ACCESS TO JAPAN THOUGH MR. YOUNG ON WEDNESDAY DENIED SUCH A LINK JUST FOR FEET INCORPORATED AN INITIAL OFFERING OF ONE MILLION SEVEN HUNDRED FIFTY THOUSAND COMMON SHARES VIA MONTGOMERY SECURITIES AND ROBINSON HUMPHREY COMPANY KAISER ALUMINUM CORPORATION AN AMENDED OFFERING OF EIGHT MILLION PREFERRED INCREASED DIVIDEND EQUITY SHARES SECURITIES OR PRIDESSM VIA MERRILL LYNCH AND COMPANY BEAR STEARNS AND COMPANY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION PAINEWEBBER INCORPORATED AND SALOMON BROTHERS INCORPORATED NPS PHARMACEUTICALS INCORPORATED AN INITIAL OFFERING OF TWO POINT FIVE MILLION COMMON SHARES VIA PAINEWEBBER AND VECTOR SECURITIES INCORPORATED ROWE FURNITURE CORPORATION AN OFFERING OF ONE MILLION FOUR HUNDRED TWO THOUSAND NINE HUNDRED SIXTY EIGHT COMMON SHARES VIA J. C. BRADFORD AND COMPANY AND INTERSTATE SLASH JOHNSON LANE CORPORATION SANCTUARY WOODS MULTIMEDIA CORPORATION AN OFFERING OF UP TO FOUR MILLION FIFTEEN THOUSAND ONE HUNDRED TWELVE COMMON SHARES AT FIVE POINT SIX TWO FIVE DOLLARS A SHARE CONGRESS REMAINS DEADLOCKED ON EASING INDIVIDUALS' TAX LIABILITY FOR THEIR DOMESTIC WORKERS EVEN AFTER BOBBY RAY INMAN'S ILL FATED CABINET NOMINATION PROVIDED YET MORE EVIDENCE OF COMPLIANCE PROBLEMS QUOTE IF I EVER SAW A SITUATION WHERE THERE WAS GRIDLOCK THIS IS IT QUOTE SAID REPRESENTATIVE BARBARA KENNELLY A CONNECTICUT DEMOCRAT ON THE WAYS AND MEANS COMMITTEE WHO HAS PROPOSED A MEASURE TO REMEDY THE MATTER IT'S SO OBVIOUS HOW TO FIX IT SHE ADDED AND YET NOTHING HAPPENS ACTION HAS BEEN BLOCKED LARGELY BY PROCEDURAL HANGUPS IN THE HOUSE AND SENATE TAX COMMITTEES EVEN THOUGH IT'S BEEN A YEAR SINCE NANNYGATE GAVE RISE TO A BIPARTISAN CONSENSUS IN FAVOR OF CHANGING THE LAW LAST JANUARY PRESIDENT CLINTON'S NOMINATION OF ZOE BAIRD TO BE ATTORNEY GENERAL WAS TORPEDOED BY REPORTS THAT SHE HADN'T PAID SOCIAL SECURITY TAXES FOR DOMESTIC WORKERS AS SOME OTHER NOMINEES MOST RECENTLY MR. INMAN HAVE ACKNOWLEDGED SIMILAR LAPSES MANY LAWMAKERS HAVE AGREED THAT THE CURRENT THRESHOLD FOR TAX LIABILITY IS UNREALISTICALLY LOW ENCOURAGING NONCOMPLIANCE CURRENTLY EMPLOYERS MUST PAY SOCIAL SECURITY TAXES FOR HOUSEHOLD WORKERS WHO ARE PAID AT LEAST FIFTY DOLLARS A QUARTER AN AMOUNT THAT COULD COVER EVEN THOSE WHO OCCASIONALLY MOW THE LAWN OR BABYSIT REPRESENTATIVE KENNELLY AND REPRESENTATIVES CARRIE MEEK D. FLORIDA AND AMO HOUGHTON R. N. Y. WANT TO RAISE THE THRESHOLD TO EIGHT HUNDRED DOLLARS A YEAR BUT WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D. ILLINOIS DOESN'T WANT TO SEND A TAX BILL TO THE SENATE FOR FEAR THAT SENATORS WILL LOAD IT UP WITH UNRELATED TAX AMENDMENTS AND SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN D. ILLINOIS HAS BEEN WAITING TO INCLUDE A NANNY TAX PROVISION IN A PACKAGE OF SOCIAL SECURITY CHANGES HE'S PROPOSED THE CHAIRMEN'S SAME CONCERNS HELPED HOLD UP ACTION IN NINETEEN NINETY THREE I WAS TOLD WAIT UNTIL NEXT YEAR REPRESENTATIVE KENNELLY SAID WELL THE NEXT YEAR IS HERE IN NINETEEN NINETY THREE THE HOUSE INCLUDED IN ITS VERSION OF BUDGET LEGISLATION A PROVISION RAISING THE THRESHOLD FOR PAYING SOCIAL SECURITY TAXES TO ONE THOUSAND EIGHT HUNDRED DOLLARS A YEAR IT WAS DROPPED IN THE SENATE ON TECHNICAL GROUNDS REPRESENTATIVE KENNELLY AND OTHERS CONTEND THAT THE ONE THOUSAND EIGHT HUNDRED DOLLAR THRESHOLD IS SO HIGH THAT IT WOULD THREATEN THE SOCIAL SECURITY ELIGIBILITY OF MANY LOW WAGE DOMESTIC WORKERS CITING GOVERNMENT FIGURES SHE HAS ARGUED THAT SOME EMPLOYERS CURRENTLY PAYING SOCIAL SECURITY WOULD STOP DOING SO THE LAWMAKER SAID SHE HAD HOPED THE INMAN CASE WOULD GIVE IMPETUS TO HER OWN PROPOSAL HOW MANY TIMES DOES THIS HAVE TO COME UP BEFORE WE ACT SHE SAID MINNESOTA MINING AND MANUFACTURING COMPANY HURT BY ITS BIG EXPOSURE TO EUROPE'S DEPRESSED ECONOMY AND BY NEGATIVE CURRENCY TRANSLATION REPORTED A SLIGHT DECLINE IN FOURTH QUARTER EARNINGS THE SAINT PAUL MINNESOTA INDUSTRIAL PRODUCTS COMPANY'S NET DIPPED ONE PERCENT TO TWO HUNDRED EIGHTY SIX MILLION DOLLARS OR ONE DOLLAR AND THIRTY THREE CENTS A SHARE FROM THE YEAR EARLIER TWO HUNDRED EIGHTY NINE MILLION DOLLARS OR ONE DOLLAR AND THIRTY TWO CENTS A SHARE THE DROP CAME DESPITE A MODERATE THREE POINT TWO PERCENT INCREASE IN SALES TO THREE POINT FOUR EIGHT BILLION DOLLARS FROM THREE POINT THREE EIGHT BILLION DOLLARS PER SHARE RESULTS REFLECT A DECLINE IN THE NUMBER OF SHARES OUTSTANDING THE RESULTS WERE HELPED BY QUOTE GOOD VOLUME GROWTH AND PRODUCTIVITY IMPROVEMENTS QUOTE SAID L. D. DESIMONE THREE M'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER STANDARD AND POOR'S CORPORATION PLACED ITS RATINGS OF THIS UTILITY ON CREDITWATCH WITH NEGATIVE IMPLICATIONS THE MOVE IS PENDING A MEETING WITH THE COMPANY'S MANAGEMENT TO DISCUSS PLANS TO REDUCE COSTS FOLLOWING THE ISSUANCE OF A FINAL RATE ORDER BY THE OKLAHOMA CORPORATION COMMISSION ABOUT NINE HUNDRED SIXTY MILLION DOLLARS OF SECURITIES IS AFFECTED THE ORDER TO BE ISSUED IN A FEW WEEKS MAY REQUIRE RATE REDUCTIONS OF SIX POINT SEVEN MILLION DOLLARS FOR THE UTILITY AND TEN MILLION DOLLARS TO FIFTEEN MILLION DOLLARS FOR ITS GAS PIPELINE SUBSIDIARY ENOGEX AN OKLAHOMA GAS SPOKESMAN SAID COMPANY OFFICIALS KNEW THE RATE DECISION WOULD BE DAMAGING BUT THAT UNTIL THE COMMISSION'S ORDER IS FINAL QUOTE IT'S IMPOSSIBLE TO MAKE ANY DECISION REGARDING COST CUTTING QUOTE AT THE UTILITY INGERSOLL RAND COMPANY CITING IMPROVEMENT FROM RESTRUCTURING ITS PUMP VENTURE WITH DRESSER INDUSTRIES INCORPORATED SAID FOURTH QUARTER NET INCOME MORE THAN DOUBLED EARNINGS TOTALED SIXTY SEVEN POINT EIGHT MILLION DOLLARS OR SIXTY FIVE CENTS A SHARE COMPARED WITH THIRTY TWO POINT FOUR MILLION DOLLARS OR THIRTY ONE CENTS A SHARE A YEAR EARLIER THE YEAR EARLIER QUARTER INCLUDED A SEVENTY MILLION DOLLAR PRETAX CHARGE FOR RESTRUCTURING OF THE FIFTY ONE PERCENT OWNED INGERSOLL DRESSER PUMP COMPANY VENTURE SALES WERE FLAT AT ONE POINT OH NINE BILLION DOLLARS FOR THE YEAR THE COMPANY HAD NET OF ONE HUNDRED FORTY TWO POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND THIRTY SIX CENTS A SHARE COUNTERING A YEAR EARLIER LOSS OF TWO HUNDRED THIRTY FOUR POINT FOUR MILLION DOLLARS OR TWO DOLLARS AND TWENTY FIVE CENTS A SHARE SALES GREW SIX POINT THREE PERCENT TO FOUR POINT OH TWO BILLION DOLLARS FROM THREE POINT SEVEN EIGHT BILLION DOLLARS INGERSOLL RAND WOODCLIFF LAKE N. J. MAKES BEARINGS DOOR HARDWARE TOOLS CONSTRUCTION EQUIPMENT AND OTHER MACHINERY DRESSER INDUSTRIES DALLAS IS AN ENERGY SERVICES CONCERN IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE INGERSOLL RAND CLOSED AT THIRTY NINE DOLLARS AND FIFTY CENTS UP TWO DOLLARS AND TWENTY FIVE CENTS SPORT SUPPLY GROUP INCORPORATED ACQUIRED THE ASSETS OF SUNSHINE GOLF INCORPORATED TUCSON ARIZONA FOR AN UNDISCLOSED SUM IONICS INCORPORATED COMPLETED THE ACQUISITION OF THE BUSINESS AND ASSETS OF RESOURCES CONSERVATION COMPANY A UNIT OF HALLIBURTON COMPANY IN A PACT FOR ELEVEN MILLION DOLLARS PLUS CONTINGENT PAYMENTS OF AS MUCH AS THREE MILLION DOLLARS RIVERSIDE FOREST PRODUCTS LIMITED ENTERED A DEFINITIVE AGREEMENT FOR THE ACQUISITION OF JACOBSEN BROTHERS FOREST PRODUCTS LIMITED RIVERSIDE ANNOUNCED IN DECEMBER THAT IT WOULD BUY JACOBSEN FOR SIXTY THREE MILLION CANADIAN DOLLARS FORTY EIGHT MILLION U. S. DOLLARS BROADCAST TELEVISION STATIONS IN MEMPHIS TENNESSEE LITTLE ROCK ARKANSAS AND MOBILE ALABAMA HAVE BECOME AFFILIATED WITH THE PARAMOUNT NETWORK A UNIT OF PARAMOUNT COMMUNICATIONS COMPANY AND CHRIS CRAFT INDUSTRIES INCORPORATED IN YOUR JANUARY FOURTH EDITORIAL QUOTE POSTAL BULLY QUOTE COMPLAINING ABOUT POSTAL SERVICE ENFORCEMENT OF RULES LIMITING PRIVATE CARRIERS YOU CLAIM THAT CUSTOMERS OF FEDERAL EXPRESS AND OTHER PRIVATE SERVICES QUOTE MUST PAY AT LEAST TWICE THE COST OF A FIRST CLASS STAMP AND YOUR SHIPMENT MUST BE CONSIDERED URGENT QUOTE YOUR CLAIM IS FALSE SURPRISINGLY SO SINCE THIS IS THE SECOND OCCASION IN RECENT WEEKS ON WHICH YOU HAVE ADDRESSED THIS ISSUE THE LAW AT WHICH YOU TAKE SUCH UMBRAGE THIRTY NINE CFR SEC. THREE HUNDRED TWENTY POINT SIX SAYS SOMETHING ALTOGETHER DIFFERENT SUBSECTION C. OF THAT REGULATION STATES THAT IF A CUSTOMER PAYS DOUBLE THE POSTAL RATE OR THREE DOLLARS WHICHEVER IS GREATER HIS PACKAGE WILL BE CONCLUSIVELY PRESUMED TO BE URGENT IN OTHER WORDS THERE'S NO SEPARATE NEED TO PROVE URGENCY IN THAT CASE OF COURSE A CUSTOMER MAY PAY LESS THAN THAT IN WHICH CASE URGENCY MUST BE SHOWN AS PROVIDED IN SUBSECTION B. WHEN YOUR REPORTER WAS RESEARCHING THE DECEMBER TWENTY NINTH PAGE ONE ARTICLE QUOTE SMALL MANUFACTURERS DISPLAY THE NIMBLENESS THE TIMES REQUIRE QUOTE HE ASKED MOBIL TO RESPOND TO A CLAIM BY ULTRA PAK INCORPORATED A PLASTIC FOOD CONTAINER MANUFACTURER THAT IT DELIVERS CUSTOMIZED PRODUCTS IN THREE DAYS ABOUT ONE THIRD THE TIME IT USUALLY TAKES FOR ITS LARGER COMPETITORS MOBIL AND TENNECO TO DELIVER OFF THE SHELF CONTAINERS YOU PRINTED THE CLAIM BUT NOT MOBIL'S RESPONSE AGAIN MOBIL SELLS THROUGH DISTRIBUTORS WHO ROUTINELY SERVICE THEIR CUSTOMERS ON A DAILY BASIS MUCH QUICKER THAN THREE DAYS AND WE WILL SHIP STOCK PRODUCT DIRECT TO AN END USER TO FULFILL RUSH NEEDS IN TWENTY FOUR HOURS OR LESS TO MY MIND THAT MAKES MOBIL MORE NIMBLE THAN ULTRA PAK PALACES TO SPORT CONTINUE TO RISE ACROSS THE COUNTRY MOST GET BUILT WITH TAX DOLLARS THAT SUPPOSEDLY WEREN'T AVAILABLE FOR TRADITIONAL PUBLIC SERVICES SOMETHING'S NOT QUITE RIGHT ABOUT THIS GAME WHICH MAKES THE CURRENT BROUHAHA IN PHOENIX WORTH WATCHING THE LOCAL BUSINESS AND POLITICAL ESTABLISHMENT THERE AS IN MANY OTHER CITIES WOULD DO NEARLY ANYTHING TO BE GIVEN A NEW PROFESSIONAL FRANCHISE IN THIS CASE FROM MAJOR LEAGUE BASEBALL IN THE HOPES OF LURING ONE THEY COOKED UP A DEAL WHEREBY JERRY COLANGELO OWNER OF THE SUNS BASKETBALL TEAM WOULD LINE UP THE TRIBUTE REQUIRED TO BUY INTO BASEBALL AND THE MARICOPA COUNTY TAXPAYERS WITHOUT BEING ASKED WOULD COUGH UP TWO HUNDRED FORTY MILLION DOLLARS FOR A RETRACTABLE DOMED STADIUM A FUNNY THING HAPPENED ON THE WAY TO THE BALLGAME THE TAXPAYERS STARTED A RHUBARB DESPITE THE USUAL SHILLING FOR THE PROJECT BY THE LOCAL MEDIA AND A LOT OF TALK ABOUT REVIVING DOWNTOWN PHOENIX A LARGE PART OF THE CITIZENRY BELIEVES IT'S BEING ASKED TO SUBSIDIZE A SEVENTH INNING STRETCH BY MR. COLANGELO AND HIS ASSOCIATES THANKS TO A BILL SNUCK THROUGH THE STATE LEGISLATURE A FEW YEARS AGO THE TAXPAYERS APPARENTLY WOULD BE DENIED A VOTE ON THE SALES TAX INCREASE THAT WOULD FUND THE STADIUM WE RECALL THIS PRACTICE CREATING A NEW SPORT A FEW HUNDRED YEARS AGO IN BOSTON HARBOR BUT BEFORE THE MARICOPA SUPERVISORS COULD MEET TO ICE THE PACT THE FLOOD OF PROTESTING PHONE CALLS WAS SUBSTANTIATED BY A POLL THAT SHOWED FIFTY NINE PERCENT TO THIRTY PERCENT VOTER OPPOSITION THE SUPERVISORS CANCELED THEIR SESSION AND HAVE BEEN BACK AT THE DRAWING BOARD THE DECIDING VOTE ON THE BODY JIM BRUNER WHO WANTS TO GRAB AN OPEN REPUBLICAN CONGRESSIONAL SEAT THIS FALL HAS RETREATED TO THE DUGOUT TO CONSIDER A LINEUP CHANGE THE BRONX CHEERS FOR THE NEW STADIUM FROM RESIDENTS OF MARICOPA COUNTY ARE EXCEPTIONAL IN A SPORTSMAD COUNTRY NO ONE WOULD DENY THE ENTHUSIASM THAT A LOCAL SPORTS TEAM SOMETIMES GENERATES BUT WE THINK THE FANS DESERVE FULLER DISCLOSURE ABOUT THE FINANCING FOR MANY OF THE STADIUMS IN THE CASES OF SAINT PETERSBURG AND SAINT LOUIS BUILT ON SPEC FOR TEAMS THAT HAVEN'T BEEN GRANTED QUOTE THIS IS STILL A PRETTY CONSERVATIVE PART OF THE WORLD AND THERE'S AN OBJECTION TO SOCIALIZED BASEBALL QUOTE SAYS WILLIAM CHESHIRE AN EDITORIAL COLUMNIST WHO HAS BUCKED THE PRO STADIUM PARTY LINE AT THE ARIZONA REPUBLIC ALSO TAXPAYERS AROUND PHOENIX HAVE EXPERIENCE IN RESISTING SUCH MACHINATIONS BY THE LOCAL ELITE WHICH IS WHY THE NOVOTE CLAUSE WAS PUT THROUGH THE LEGISLATURE THE TAX SUBSIDY TEAM MAY YET COME UP WITH THE RIGHT SUCKER PITCH BUT FOR NOW THEY'RE GETTING HAMMERED PRETTY HARD IN THE ARIZONA DESERT FANS ELSEWHERE SHOULD TUNE IN FIREARMS HAVE ALMOST REPLACED MOTOR VEHICLE CRASHES AS THE LEADING CAUSE OF INJURY RELATED DEATH IN THE U. S. NEW FEDERAL STUDIES SAY FOR DECADES MOTOR VEHICLE ACCIDENTS HAVE CLAIMED MORE LIVES THROUGH INJURY THAN ANY OTHER CAUSE BUT FROM NINETEEN EIGHTY FIVE THROUGH NINETEEN NINETY ONE THE DEATH RATE FROM SUCH ACCIDENTS FELL TEN PERCENT WHILE THE DEATH RATE LINKED TO FIREARMS JUMPED FOURTEEN PERCENT ACCORDING TO REPORTS ISSUED BY THE NATIONAL CENTER FOR HEALTH STATISTICS AND THE CENTERS FOR DISEASE CONTROL AND PREVENTION THE TRENDS WHICH ACCELERATED BETWEEN NINETEEN EIGHTY EIGHT AND NINETEEN NINETY ONE MEAN THAT FIREARM INJURIES COULD BECOME THE NATION'S LEADING CAUSE OF INJURY DEATH WITHIN THE NEXT TWO TO THREE YEARS IN NINETEEN NINETY ONE ALONE ACCORDING TO THE REPORTS SIX STATES CALIFORNIA NEW YORK TEXAS LOUISIANA NEVADA AND VIRGINIA AS WELL AS THE DISTRICT OF COLUMBIA HAD MORE FIREARM DEATHS THAN MOTOR VEHICLE DEATHS AND ALREADY FIREARMS CAUSE MORE DEATHS AMONG PEOPLE AGED TWENTY FIVE TO THIRTY FOUR THAN ANY OTHER INJURY PREVIOUS STUDIES HAVE NOTED THE EXPLODING NUMBER OF GUN RELATED DEATHS IN SELECTED GROUPS PARTICULARLY AMONG YOUNG BLACK MALES BUT THE NEW REPORTS ARE THE FIRST TO HIGHLIGHT THE BREADTH OF THE PROBLEM QUOTE WE'VE JUST BEGUN TO FOCUS ON FIREARM DEATHS AND VIOLENCE AS A HEALTH ISSUE QUOTE SAID JIM MERCY ACTING DIRECTOR OF THE DIVISION OF VIOLENCE PREVENTION AT THE C. D. C. WHILE LEGISLATORS AND HEALTH OFFICIALS HAVE MADE PROGRESS IN REDUCING THE FATALITY RATE FROM MOTOR VEHICLE ACCIDENTS HE SAID THERE'S BEEN LITTLE IF ANY SYSTEMATIC APPROACH TO PREVENTING FIREARM INJURIES THE NEW STATISTICS WILL LIKELY ADD FUEL TO THE DEBATE ON HOW TO STEM VIOLENCE IN A RECENT WALL STREET JOURNAL SLASH N. B. C. POLL NINETY THREE PERCENT OF THE RESPONDENTS SAID DEALING WITH CRIME IS AN ABSOLUTE PRIORITY FOR ELECTED OFFICIALS JUST SIXTY SEVEN PERCENT CITED HEALTH CARE INDEED PRESIDENT CLINTON IN HIS STATE OF THE UNION ADDRESS TUESDAY EVENING PROMISED TO GIVE THE ISSUE OF VIOLENCE NEAR EQUAL BILLING WITH HIS TOP PRIORITY HEALTH CARE REFORM THE REPORTS ISSUED YESTERDAY FOUND THAT IN NINETEEN NINETY ONE THE MOST RECENT YEAR FOR WHICH DATA ARE AVAILABLE FORTY THREE THOUSAND FIVE HUNDRED THIRTY SIX PEOPLE DIED FROM INJURIES IN MOTOR VEHICLE ACCIDENTS WHILE THIRTY EIGHT THOUSAND THREE HUNDRED SEVENTEEN PEOPLE DIED FROM INJURIES TIED TO FIREARMS OF THE LATTER FORTY SEVEN PERCENT WERE HOMICIDES FORTY EIGHT PERCENT WERE SUICIDES AND FOUR PERCENT WERE CATEGORIZED AS UNINTENTIONAL DEATHS THE NEXT LEADING CAUSES OF DEATH BY INJURY WERE FALLS POISONINGS DROWNINGS AND FIRES AND BURNS THE GREATEST INCREASES IN FIREARM DEATHS ACCORDING TO THE REPORTS OCCURRED AMONG ADOLESCENTS AND YOUNG ADULTS FROM NINETEEN EIGHTY EIGHT TO NINETEEN NINETY ONE THE MORTALITY RATE FROM FIREARM INJURIES JUMPED FORTY PERCENT AMONG INDIVIDUALS AGED FIFTEEN TO TWENTY FOUR AMONG AMERICANS AGED TWENTY FIVE TO THIRTY FOUR THE RATE INCREASED EIGHT PERCENT GIVEN THE DEEP AND COMPLEX ROOTS OF VIOLENCE SAID DOCTOR MERCY AT THE C. D. C. ANY EFFORTS TO REDUCE THE NUMBER OF DEATHS LINKED TO FIREARMS MAY PROVE EQUALLY INVOLVED BUT THE C. D. C. CALLED YESTERDAY FOR A MASSIVE EDUCATION PROGRAM AMONG OTHER STEPS TO HELP PREVENT SUCH INJURIES OTHER RECENT STUDIES HAVE SHOWN THAT THE SIMPLE PRESENCE OF A GUN IN A HOME IS LINKED TO AN APPROXIMATELY FIVEFOLD INCREASE IN THE RISK OF SUICIDE AND A THREEFOLD INCREASE IN THE RISK OF HOMICIDE FOR HOUSEHOLD MEMBERS JOHN UPDIKE HAS ALWAYS SHARED WITH HIS HERO VLADIMIR NABOKOV A FASCINATION WITH THE RAVISHED VIRGIN THAT IS THE NEW WORLD THE TRAGIC AND FOOLISH HISTORY OF THE DESPOLIATION PROVIDES AN AUDIBLE COUNTERPOINT IN MR. UPDIKE'S TALES OF MODERN LIFE FROM QUOTE RABBIT RUN QUOTE TO QUOTE MEMORIES OF THE FORD ADMINISTRATION QUOTE IN HIS NEW NOVEL BRAZIL KNOPF TWO HUNDRED SIXTY PAGES TWENTY THREE DOLLARS MR. UPDIKE REFLECTS MORE FANCIFULLY ON AMERICA'S PAST LOADING HIS NARRATIVE WITH LEGEND AND METAPHOR IN TELLING HIS STORY HE BOLDLY SETS FORTH INTO THE TREACHEROUS WATERS OF MAGICAL REALISM AND THERE HE FLOUNDERS WHEN A WRITER OF MR. UPDIKE'S GIFTS MOVES IN A RADICALLY NEW DIRECTION IT SEEMS CHURLISH TO WISH HIM BACK TO HIS OLD WAYS BUT IN BRAZIL HE HAS DEFINITELY BLUNDERED INTO THE WRONG GENRE THOUGH IN PREVIOUS BOOKS HE HAS HANDLED MAGIC EFFECTIVELY NOTABLY IN THE WITCHES OF EASTWICK THE FANTASY WAS FIRMLY GROUNDED IN THE PETTY WORLD HE EVOKES SO BRILLIANTLY THAT OF THE MIDDLE CLASS MR. UPDIKE A SUBTLE AND WORLDLY MAN IS NOT QUITE SO CREDIBLE IN THE PERSONA OF LATIN AMERICAN MAGIC REALIST CELEBRANT OF INNOCENCE YOUTH AND FIDELITY BRAZIL TELLS THE TALE OF A MODERN NO A POSTMODERN TRISTAN AND ISOLDE ON THE BEACH OF COPACABANA IN RIO TRISTAO A BLACK SLUM BOY SEES AND PLEDGES HIMSELF ON THE SPOT TO ISABEL THE PALE BLOND DAUGHTER OF ONE OF BRAZIL'S GOVERNING ELITES HE IS THE DESCENDANT OF SLAVES SHE OF THE EUROPEAN MASTERS A MISMATCHED COUPLE MR. UPDIKE WRITES BUT BRAZIL HAD BEEN POPULATED BY MISMATCHED COUPLES THE KNIGHT ERRANT PRESENTS HIS BELOVED WITH A RING BEARING THE LEGEND QUOTE DAR QUOTE WHICH THE YOUNG PEOPLE READ AS THE PORTUGUESE QUOTE TO GIVE QUOTE IT IS ALSO AN ACRONYM FOR DAUGHTERS OF THE AMERICAN REVOLUTION AND IT TRANSPIRES THAT TRISTAO HAS STOLEN THE RING FROM A BLUE HAIRED MEMBER OF THAT CLUB THE TWO YOUNG PEOPLE ARE NOW SPIRITUALLY ONE FOR AS MR. UPDIKE EXPLAINS IN ONE OF THE FATUOUS BROMIDES THAT PEPPER THE BOOK IN BRAZIL ONE SAYS WIFE AND HUSBAND NOT AFTER SOME STILTED LEGAL CEREMONY BUT WHEN ONE'S HEART FEELS MARRIED PURSUED HALFHEARTEDLY BY THE POWERS OF BOURGEOIS CONVENTION AS REPRESENTED BY ISABEL'S FATHER AND HIS GOONS THE LOVERS TAKE A ZIGZAG JOURNEY INTO AND BEYOND THE PRIMEVAL HEART OF THEIR COUNTRY FROM COSMOPOLITAN RIO THEY GO TO INDUSTRIAL SAO PAOLO TO DEAD BUREAUCRATIC BRASILIA BRAZIL'S HEART'S PRISON TO A GOLD MINING COMMUNITY STILL USING EIGHTEENTH CENTURY METHODS TO THE WILD MATO GROSSO WHERE THEY BECOME PART OF A SEVENTEENTH CENTURY COLONY OF PORTUGUESE RAIDERS AND FINALLY TO THE IMMEMORIAL INDIAN COMMUNITIES OF THE AMAZON BASIN THERE ISABEL CONSULTS A SHAMAN HOW IS SHE TO FREE TRISTAO WHO BECAUSE OF HIS RACE HAS BEEN MADE A SLAVE BY THE PORTUGUESE RAIDERS THANKS TO THE SHAMAN'S SPELL A SOLUTION IS FOUND THE LOVERS CHANGE RACE ISABEL NOW BECOMES BLACK TRISTAO WHITE THEIR PERSONALITIES CHANGE ACCORDINGLY AND SO DOES THEIR ALREADY OVERWROUGHT SEX LIFE AS A WHITE WOMAN ISABEL AN ISOLDE NOT MERELY OF THE WHITE HANDS BUT OF THE WHITE WHITE ASS HAS BEEN THE ONE OSTENSIBLY BESTOWING THE FAVOR OF HER PERSON UPON HER BLACK LOVER NOW TRISTAO ADOPTS THE ROLE OF GIVER DID NOT PORTUGAL HERE IN THE CONTINENTAL BACKLAND OF BRAZILWOOD AND SUGAR CANE MAKE A WIFE OF AFRICA BUT NOT CONSECRATE THE FACT HE WOULD BE A WHITE MAN WHO WOULD ELEVATE HIS BLACK MISTRESS TO HIS OWN LEVEL THEY RETRACE THEIR STEPS TOWARD THE EAST AND THE PRESENT DAY ENDING UP BACK IN RIO AS MEMBERS OF THE INDUSTRIAL RULING CLASS AND AT THE END OF THE NOVEL TRISTAO IS MURDERED ON COPACABANA BY JUST SUCH A YOUNG HOOD AS HE ONCE WAS ISABEL LIES DOWN IN THE WAVES TO DIE WITH HIM BUT SINCE SHE IS IN FACT A MODERN ISABEL AND NOT A MEDIEVAL ISOLDE DEATH DOES NOT COME AS EASILY AS SHE HAD HOPED IN THE COURSE OF THE STORY THE LOVERS ACT OUT EVERY ECONOMIC ROLE BRAZIL'S HISTORY HAS OFFERED THEY BECOME IN TURN CAPITALISTS INDUSTRIAL WORKERS PETITS BOURGEOIS AND SLAVES THEY TAKE PART IN EVERY POSSIBLE RACIAL COMBINATION TRISTAO'S BROTHERS AND ISABEL'S CHILDREN FROM VARIOUS BRIEF AFFAIRS ARE OF EVERY BREED THAT POPULATE THE CONTINENT AND THEY PERFORM MORE INSISTENT AND EXHAUSTIVE VARIATIONS ON THE SEX ACT THAN I THOUGHT EVEN MR. UPDIKE'S IMAGINATIVE POWERS WERE EQUAL TO AS MR. UPDIKE DWELLS ON RACE CLASS GENDER AND COLONIALISM HE RESORTS TO UNCHARACTERISTIC CLICHES OF ISABEL HE WRITES QUOTE SHE HAD LEFT CODDLED GIRLHOOD BEHIND SHE HAD EMBARKED UPON THE PATH OF WOMAN WHICH IS A PATH OF PAIN QUOTE WHAT IS THAT SUPPOSED TO MEAN AND WHAT ABOUT THE BANALITY THE BRIGHTLY MASKED TEDIUM OF BOURGEOIS LIFE TALETELLERS REMAIN BALKED BY IT WHO DOES MR. UPDIKE THINK HE'S FOOLING THE TELLER OF THE RABBIT TALES HAS HARDLY BEEN BALKED BY THE BANALITY OF BOURGEOIS LIFE BUT TO BE ANTIBOURGEOIS IS PART OF THE BAGGAGE THAT THE WOULD BE MAGICAL REALIST MUST SHOULDER COMING FROM MR. UPDIKE THE BOURGEOIS ARTIST PAR EXCELLENCE SUCH A SIMPLISTIC POSE IS NOT VERY CONVINCING ONE HOPES THAT BRAZIL TURNS OUT TO BE A MERE GLITCH IN THE CAREER OF THE MAN WHO IS PROBABLY THIS COUNTRY'S BEST LIVING WRITER MS. ALLEN WRITES ON BOOKS FOR THE NEW CRITERION AND OTHER PUBLICATIONS THE U. S. TREASURY SECURITIES MARKET SHRUGGED OFF NEWS OF STRONGER ECONOMIC GROWTH WITH PRICES POSTING AN IMPRESSIVE RALLY LATE IN THE SESSION THE BENCHMARK THIRTY YEAR TREASURY BOND ROSE FIVE EIGHTHS POINT OR SIX DOLLARS AND TWENTY FIVE CENTS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO NINETY NINE AND TWENTY FIVE THIRTY SECONDS ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO SIX POINT TWO SIX PERCENT FROM SIX POINT THREE OH PERCENT ON WEDNESDAY THE BOND MARKET MANAGED TO WEATHER TWO ECONOMIC REPORTS THAT ON THE SURFACE COULD HAVE SPELLED TROUBLE THE COMMERCE DEPARTMENT REPORTED THAT NEW ORDERS FOR DURABLE GOODS JUMPED TWO POINT TWO PERCENT DURING DECEMBER SLIGHTLY MORE THAN EXPECTED THE LABOR DEPARTMENT MEANWHILE ANNOUNCED THAT INITIAL UNEMPLOYMENT CLAIMS FELL FIFTY SIX THOUSAND TO THREE HUNDRED NINE THOUSAND LAST WEEK BOND INVESTORS OFTEN REACT NEGATIVELY TO REPORTS OF A STRONGER ECONOMY BECAUSE THEY FEAR HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN DAVID GREENLAW ECONOMIST AT MORGAN STANLEY AND COMPANY SAID THE DURABLE GOODS REPORT NOT ONLY REFLECTED ECONOMIC STRENGTH AT THE TAIL END OF NINETEEN NINETY THREE BUT ALSO GAVE HINTS OF HOW THE ECONOMY SHOULD PERFORM IN EARLY NINETEEN NINETY FOUR THE DATA CONFIRMED QUOTE THAT THERE WAS SOME MOMENTUM AT THE END OF THE FOURTH QUARTER BUT WE REALLY ALREADY KNEW THAT QUOTE MR. GREENLAW SAID THE REPORT ALSO SETS THE STAGE FOR SOME MOMENTUM IN THE FACTORY SECTOR IN THE FIRST QUARTER BUT TRADERS AND INVESTORS MEANWHILE CHOSE TO VIEW THE DECEMBER DATA AS OLD NEWS AND THE JOBLESS CLAIMS DATA WERE WRITTEN OFF AS MUDDIED BY PROBLEMATIC SEASONAL FACTORS AND DISTORTED BY THE BAD WEATHER AS A RESULT AN EARLY ATTEMPT AT PUSHING PRICES DOWN FADED QUICKLY PRICES DRIFTED FOR MOST OF THE SESSION BEFORE SPIKING UP LATE IN THE SESSION SUPPORTING TREASURY PRICES AND HELPING TO PROVIDE A LAUNCHING PAD FOR THE MARKET WAS A SMALL BUT STEADY FLOW OF INVESTOR INTEREST IN THE MARKET THERE ARE ACCOUNTS THAT JUST HAVE MONEY THEY NEED TO PUT TO WORK SAID TIM HEATON A BOND TRADER AT NIKKO SECURITIES COMPANY INTERNATIONAL INCORPORATED MUCH OF THAT CASH HAD BEEN INVESTED EARLIER THIS MONTH IN SECURITIES MATURING IN TWO YEARS AND LESS BUT SOME OF THAT MONEY IS NOW BEGINNING TO WORK ITS WAY INTO LONGER ISSUES ACCORDING TO DEALERS TRADERS MEANWHILE SCRAMBLED TO REPLACE TREASURY SECURITIES THAT HAD BEEN SOLD TO CUSTOMERS OR TO UNWIND HEDGES THAT HAD BEEN SET AGAINST OTHER FIXED INCOME PRODUCTS AND AS THE MARKET WORKED HIGHER IT BROKE THROUGH TECHNICAL LEVELS DRAWING EVEN MORE BUYING INTO THE MARKET AND EXTENDING THE RALLY THERE ARE SOME SIGNS HOWEVER THAT THERE IS A LIMIT TO THE AMOUNT OF CASH ON THE SIDELINES FIGURES FROM THE INVESTMENT COMPANY INSTITUTE RELEASED YESTERDAY SHOWED THAT ALTHOUGH INVESTORS CONTINUED TO POUR MORE MONEY INTO MUTUAL FUNDS IN DECEMBER LESS OF THAT CASH IS HEADING INTO THE GOVERNMENT BOND MARKET THE I. C. I. DATA SHOWED GOVERNMENT BOND FUNDS EXPERIENCED A NET OUTFLOW OF SEVEN HUNDRED EIGHTY TWO MILLION DOLLARS LAST MONTH FOLLOWING A SEVEN HUNDRED EIGHT MILLION DOLLAR OUTFLOW IN NOVEMBER IN CONTRAST INVESTORS PLACED A NET SEVEN HUNDRED FOUR MILLION DOLLARS INTO GOVERNMENT FUNDS DURING OCTOBER JEFF TYLER A PORTFOLIO MANAGER AT BENHAM GROUP SAID THAT ALTHOUGH THERE HAS BEEN SOLID INTEREST IN MUNICIPAL BOND FUNDS AND EQUITY FUNDS WE HAVE SEEN VERY LITTLE INTEREST IN THE GOVERNMENT SECTOR IN FACT HE SAID WE LOST A LITTLE BIT OF MONEY OUT OF GOVERNMENTS THE BOND MARKET ALSO HAS TWO NEARTERM HURDLES TO FACE THIS MORNING THE GOVERNMENT WILL RELEASE ITS INITIAL READING ON FOURTH QUARTER GROWTH IN GROSS DOMESTIC PRODUCT TRADERS ARE BRACING FOR A STRONG READING OF A FIVE PERCENT TO SIX PERCENT RATE OF GROWTH THEN ON MONDAY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN IS SCHEDULED TO GO BEFORE THE JOINT ECONOMIC COMMITTEE OF CONGRESS TO DISCUSS THE FED'S ECONOMIC OUTLOOK TRADERS AND ANALYSTS WILL CAREFULLY COMB THROUGH HIS REMARKS FOR ANY SIGNS OF WHEN THE FED MIGHT RAISE INTEREST RATES ONTARIO'S DEBT WAS WELCOMED INTO THE CORPORATE BOND MARKET FOR THE SECOND TIME THIS WEEK AS THE CANADIAN PROVINCE SOLD TWO BILLION DOLLARS OF FLOATING RATE GLOBAL NOTES YESTERDAY SYNDICATE OFFICIALS SAID THE DEAL WENT EXTREMELY WELL AS THE SIZE OF THE OFFERING WAS INCREASED BY FIVE HUNDRED MILLION DOLLARS FROM AN ORIGINAL ONE POINT FIVE BILLION DOLLARS ONTARIO SOLD THE FIVE AND ONE HALF YEAR NOTES AT NINETY NINE POINT FIVE NINE FIVE THE NOTES WILL FLOAT AT A RATE ZERO POINT ZERO EIGHT PERCENTAGE POINT ABOVE THE THREE MONTH LONDON INTERBANK OFFERED RATE ONTARIO'S DEAL THE PROVINCE'S FIRST FLOATING RATE GLOBAL OFFERING FOLLOWED ITS ONE POINT TWO FIVE BILLION CANADIAN DOLLAR NINE HUNDRED FIFTY ONE MILLION U. S. DOLLARS GLOBAL THIRTY YEAR ISSUE ON MONDAY GLOBAL OFFERINGS ARE SOLD SIMULTANEOUSLY IN THE WORLD'S MAJOR MARKETS AND ARE INTENDED TO BE EASILY TRADED IN ALL OF THEM ONTARIO'S ASSISTANT DEPUTY MINISTER OF FINANCE JOHN MADDEN SAID THE PROVINCE OPTED FOR A GLOBAL FLOATING RATE NOTE AS A MEANS OF DIVERSIFYING ITS FINANCINGS THE ISSUE WAS DONE AT A LOWER COST THAN A COMPARABLE DOMESTIC ISSUE HE SAID MORE THAN HALF OF THOSE BUYERS WERE MONEY MANAGERS WHILE BANKS AND PENSION FUNDS ALSO BOUGHT INTO THE OFFERING SAID MR. JACK OF LEHMAN QUOTE THERE'S A REAL DEMAND FOR FLOATING RATE SECURITIES QUOTE MR. JACK SAID BECAUSE THE ISSUE FLOATS ON A QUARTERLY BASIS IT PROVIDES PROTECTION FROM RISING INTEREST RATES HE ADDED WHILE UNCERTAINTY ABOUT ONTARIO'S FISCAL OUTLOOK LED STANDARD AND POOR'S CORPORATION TO DOWNGRADE THE PROVINCE'S DEBT TO DOUBLE A MINUS FROM DOUBLE A IN NOVEMBER INVESTORS ESPECIALLY IN EUROPE CONTINUE TO FLOCK TO ONTARIO'S PAPER BECAUSE OF ITS NAME RECOGNITION ONE ANALYST SAID EVEN THOUGH THEIR CREDIT STANDING DIMINISHED THEY ARE STILL DOUBLE A AND THAT'S STILL INVESTMENT GRADE THE ANALYST ADDED THE NOTES ARE RATED AA TWO BY MOODY'S INVESTORS SERVICE INCORPORATED ALTHOUGH INVESTORS GAVE THEM A WARM RECEPTION THE THIRTY YEAR BONDS BROUGHT TO MARKET BY ONTARIO ON MONDAY TRADED DOWN SLIGHTLY IN THE SECONDARY MARKET THE SEVEN POINT FIVE PERCENT COUPON BONDS MATURING IN TWO THOUSAND TWENTY FOUR DROPPED ZERO POINT ONE SEVEN POINT OR ONE DOLLAR AND SEVENTY CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY EIGHT POINT TWO FIVE THE YIELD ROSE TO SEVEN POINT SIX FIVE PERCENT FROM SEVEN POINT SIX THREE FIVE PERCENT PROCEEDS FROM ONTARIO'S OFFERING WILL BE USED TO FUND ITS OPERATIONS FOR THE NINETEEN NINETY FOUR FISCAL YEAR WHICH ENDS IN MARCH NINETEEN NINETY FIVE ONTARIO'S MR. MADDEN SAID THE PROVINCE'S TOTAL BORROWINGS FOR THE YEAR ARE EXPECTED TO BE TEN BILLION CANADIAN DOLLARS OVERALL ONTARIO HAS MORE THAN SEVENTY SIX BILLION CANADIAN DOLLARS IN DEBT OUTSTANDING IN THE INVESTMENT GRADE MARKET PRICES ROSE IN LOCK STEP WITH TREASURYS THE JUNK BOND MARKET CONTINUES ON A HOT STREAK AS NEW ISSUES ARE BEING PRICED WITH EXTREMELY LOW COUPONS AND ARE TRADING HIGHER IN THE SECONDARY MARKET THERE'S NO END TO THIS MARKET IT'S UNBELIEVABLE ONE TRADER SAID YESTERDAY'S JUNK OFFERINGS INCLUDED A THREE HUNDRED SIXTY MILLION DOLLAR OFFERING OF TEN YEAR NOTES FROM PLAYTEX FAMILY PRODUCTS CORPORATION AND A ONE HUNDRED TWENTY FIVE MILLION DOLLAR OFFERING OF TWELVE YEAR NOTES FROM RIGGS NATIONAL CORPORATION HOWEVER YESTERDAY'S BIGGEST MOVER WASN'T A NEW ISSUE KAISER ALUMINUM AND CHEMICAL CORPORATION'S TWELVE AND THREE QUARTERS PERCENT COUPON BONDS DUE TWO THOUSAND THREE JUMPED THREE POINT FIVE POINTS OR THIRTY FIVE DOLLARS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO ONE HUNDRED SEVEN POINT FIVE THE YIELD TO THE FIRST PAR CALL DROPPED TO ELEVEN POINT ONE EIGHT PERCENT FROM TWELVE POINT SEVEN ONE FIVE PERCENT KAISER IS A UNIT OF KAISER ALUMINUM CORPORATION MUNICIPAL BONDS CONTINUED THEIR ADVANCE YESTERDAY AND GENERALLY CLOSED THREE EIGHTHS TO THREE QUARTERS POINT HIGHER MUNI SPECIALISTS SAY THE MARKET IS DRAWING STRENGTH FROM A SLOWDOWN IN ISSUANCE IN SECONDARY DEALINGS THE HARRIS COUNTY TEXAS FIVE POINT THREE OH PERCENT BONDS DUE TWO THOUSAND THIRTEEN CLOSED ONE HALF STRONGER AT NINETY NINE AND SEVEN EIGHTHS YIELDING FIVE POINT THREE OH PERCENT THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S FIVE POINT FIVE OH PERCENT BONDS DUE TWO THOUSAND TWENTY FOUR FINISHED THREE QUARTERS HIGHER AT ONE HUNDRED YIELDING FIVE POINT FOUR EIGHT PERCENT ALTHOUGH MUNIS SEEMED TO BE INDEPENDENTLY STRONG THIS SESSION THEY WERE HELPED BY THE TREASURY BOND MARKET'S CLIMB TRADERS SAY BOTH TAX EXEMPT BONDS AND TREASURYS STRENGTHENED DESPITE NEWS ABOUT THE UNEXPECTEDLY LARGE TWO POINT TWO PERCENT INCREASE IN DURABLEGOODS ORDERS LAST MONTH AND UNCERTAINTIES ABOUT THE FOURTH QUARTER GROSS DOMESTIC PRODUCT DATA TO BE RELEASED TODAY ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT ESTIMATE THAT G. D. P. GREW AT A FIVE POINT TWO PERCENT ANNUAL RATE IN THE FOURTH QUARTER AFTER EXPANDING AT A TWO POINT NINE PERCENT RATE IN THE THIRD QUARTER DESPITE SIGNS OF RENEWED ECONOMIC VIGOR LEBENTHAL AND COMPANY MANAGING DIRECTOR DENIS GALLE SAID CONCERNS ABOUT FEDERAL RESERVE TIGHTENING APPEAR TO BE ON THE BACK BURNER CHRYSLER CORPORATION PRICED ONE POINT FIVE BILLION DOLLARS OF AUTO LOAN DEBT AND SOCIETY CORPORATION'S SOCIETY NATIONAL BANK ISSUED TWO HUNDRED THIRTY FOUR POINT SEVEN MILLION DOLLARS OF STUDENT LOAN SECURITIES AS ASSET BACKED ACTIVITY OVERSHADOWED THE MORTGAGE BACKED MARKET SEPARATELY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ANNOUNCED ONE NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT AND AN INCREASE OF A DEAL FOR EIGHT HUNDRED MILLION DOLLARS OF NEW SECURITIES COLLATERAL WAS THIRTY YEAR SIX AND ONE HALF PERCENT AND SEVEN PERCENT SECURITIES ALSO FANNIE MAE ISSUED A ONE POINT ONE BILLION DOLLAR STRIPPED MORTGAGE SECURITIES DEAL THAT USED FIFTEEN YEAR SIX AND ONE HALF SECURITIES AS COLLATERAL IN TRADING MORTGAGE SECURITIES ENDED A FEATURELESS SESSION WITH MODERATE PRICE GAINS WITH SIX AND ONE HALF PERCENT SECURITIES FOR FEBRUARY DELIVERY ALL UP FIVE THIRTY SECONDS HALF THE PRICE INCREASE POSTED BY TEN YEAR TREASURY NOTES GINNIE MAES CLOSED AT ONE HUNDRED AND EIGHT THIRTY SECONDS FREDDIE MAC GOLDS ENDED AT ONE HUNDRED AND ELEVEN THIRTY SECONDS AND FANNIE MAES FINISHED AT ONE HUNDRED AND FIVE THIRTY SECONDS CHRYSLER'S PREMIER AUTO TRUST NINETEEN NINETY FOUR TO ONE OFFERING WAS THE SECOND MAJOR DEAL THIS WEEK TO BENEFIT FROM INVESTOR DEMAND FOR TOP RATED ASSET BACKED PAPER THE OFFERING WAS BACKED BY AUTO AND LIGHT TRUCK RECEIVABLES ORIGINATED BY THE COMPANY'S CHRYSLER FINANCIAL CORPORATION UNIT AND WAS MANAGED BY BEAR STEARNS AND COMPANY C. S. FIRST BOSTON PRICED THE TWO HUNDRED THIRTY FOUR POINT SEVEN MILLION DOLLAR DEAL FOR SOCIETY NATIONAL WHICH WAS BACKED BY LOANS TO LAW STUDENTS THE DEAL IS THE SECOND PUBLICLY OFFERED SECURITY BACKED BY STUDENT LOANS TO BE OFFERED BY THE CLEVELAND BANK THE LARGEST PORTION OF THE SOCIETY OFFERING WAS A ONE HUNDRED FIFTY EIGHT POINT SIX MILLION DOLLAR FLOATING RATE CLASS PRICED WITH AN INITIAL COUPON OF THREE POINT FOUR FIVE FIVE PERCENT AT PAR TO FLOAT ZERO POINT THREE THREE POINT ABOVE THE ONE MONTH LONDON INTERBANK OFFERED RATE ANDREW WILLIS CONTRIBUTED TO THIS COLUMN THE CLINTON ADMINISTRATION WANTS EMPLOYERS TO PAY THEIR WORKERS TO TAKE THE BUS BUT THE PLAN ISN'T LIKELY TO CHANGE COMMUTING HABITS MUCH TAX LAW EXPERTS SAY THE ADMINISTRATION WANTS COMPANIES THAT PAY THEIR EMPLOYEES' PARKING BILLS TO OFFER THOSE WORKERS THE CASH EQUIVALENT AS AN ALTERNATIVE MANY OF THE EMPLOYEES WOULD POCKET THE CASH AND TAKE MASS TRANSIT INSTEAD THE THEORY GOES EASING AIR POLLUTION AND CROWDED HIGHWAYS THE PROPOSAL IS PART OF THE QUOTE CLIMATE CHANGE ACTION PLAN QUOTE THAT PRESIDENT CLINTON INTRODUCED LAST FALL AND WILL BE INCLUDED IN THE FEDERAL BUDGET WHEN IT IS UNVEILED NEXT MONTH THE PLAN SAYS THAT IF COMPANIES WANT TO PRESERVE THEIR TAX BREAKS FOR GIVING THEIR WORKERS FREE PARKING IT MUST OFFER THEM THE CASH EQUIVALENT OF THE PARKING FEES AS WELL THIS COULD HELP STATES MEET THEIR OBLIGATIONS UNDER THE CLEAN AIR ACT AN ADMINISTRATION OFFICIAL SAID IT'S BETTER THAN A MANDATE ONLY COMMUTERS WHO PARK IN SEPARATE PARKING LOTS NOT OWNED BY THEIR EMPLOYERS WOULD BE AFFECTED NO ONE IS CERTAIN HOW MANY COMMUTERS THAT AMOUNTS TO BUT THE OFFICIALS CONTEND THAT ENOUGH COMMUTERS WOULD OPT FOR THE CASH TO MAKE IT A NET GOVERNMENT MONEYMAKER BECAUSE THE CASH GIVEN IN LIEU OF PARKING WOULD BE TAXABLE INCOME MOREOVER COMPANIES THAT QUIT PAYING FOR PARKING WOULD LOSE A TAX DEDUCTION OFFICIALS ESTIMATE THAT THE PLAN WOULD MUSTER SEVERAL HUNDRED MILLION ADDITIONAL TAX DOLLARS OR PERHAPS AS MUCH AS ONE BILLION DOLLARS WITH CONGRESS SCROUNGING FOR WAYS TO MEET ITS BUDGET CEILINGS ANY PROPOSAL THAT CLAIMS IT CAN RAISE CASH FOR OTHER PROGRAMS IS LIKELY TO SAIL THROUGH BUT OUTSIDE THE GOVERNMENT REACTION HAS BEEN MORE AKIN TO SOMEONE WHO JUST DISCOVERED A FLAT TIRE I THINK IT'S A DUMB IDEA SAYS MARY HEVENER A FRINGE BENEFITS EXPERT AT THE LAW FIRM OF MCDERMOTT WILL AND EMERY IN WASHINGTON I SEE THIS AS BEING A HUGE REVENUE LOSER AND IT ASTOUNDS ME THAT IT HAS GOTTEN TO THIS POINT IN THE BUDGET MS. HEVENER BELIEVES WORKERS WHO ARE COVERED BY THE PROPOSAL WILL SIMPLY ASK FOR A SALARY REDUCTION EQUIVALENT TO THE VALUE OF THEIR PARKING MANY COMPANIES FOR EXAMPLE ALREADY ALLOW EMPLOYEES TO REDUCE THEIR GROSS SALARIES IN EXCHANGE FOR TAX FREE INCOME DEDICATED TO CHILD CARE OR HEALTH CARE THAT WILL HAPPEN THE ADMINISTRATION OFFICIAL CONCEDES QUOTE BUT SO MANY PEOPLE PARK AND GET PARKING PAID FOR THAT YOU ONLY NEED A SLIVER TO OPT FOR THE CASH ON TOP OF THEIR SALARIES TO RAISE REAL MONEY QUOTE GERALD USLANDER A PRINCIPAL AT THE WASHINGTON RESOURCE GROUP AN EMPLOYEE BENEFITS CONSULTING FIRM IS ALSO SKEPTICAL HE NOTES THAT A SEPARATE LAW WILL GO INTO EFFECT FULLY THIS YEAR THAT REQUIRES EMPLOYEES TO PAY TAX ON THE VALUE OF THEIR FREE PARKING ABOVE ONE HUNDRED FIFTY FIVE DOLLARS A MONTH THAT'S GOING TO BE A BIG ADMINISTRATIVE BURDEN FOR EMPLOYERS AS IT IS AND THIS WILL JUST ADD TO IT HE SAYS HE ALSO SAYS THAT MOST OF THE EMPLOYEES WHO RECEIVE PAID PARKING BENEFITS ARE HIGHER PAID EXECUTIVES ANYWAY TO WHOM THE CONVENIENCE OF DRIVING EXCEEDS THE IMPORTANCE OF A LITTLE EXTRA CASH I DON'T SEE THIS CHANGING BEHAVIOR MUCH HE SAYS AMERITECH CORPORATION PLANS TO SPEND FOUR POINT FOUR BILLION DOLLARS OVER THE NEXT FIFTEEN YEARS TO BUILD A FULL SERVICE NETWORK CAPABLE OF CARRYING AN ARRAY OF INTERACTIVE SERVICES TO CUSTOMERS ACROSS ITS MIDWEST TERRITORY QUOTE THIS IS THE PLATFORM THAT POSITIONS US TO SERVE FIVE TO SIX MILLION CUSTOMERS QUOTE BY THE END OF THE DECADE RICHARD BROWN AMERITECH'S VICE CHAIRMAN SAID BUT THE FOUR POINT FOUR BILLION DOLLARS BLUEPRINT AMOUNTS TO A CONSERVATIVE COURSE FOR THE COMPANY AT A TIME WHEN OTHER REGIONAL TELEPHONE COMPANIES HAVE UNVEILED BIGGER AND BOLDER PLANS AMERITECH NONETHELESS SAID IT INTENDS TO DELIVER VIDEO SERVICES TO A MILLION HOMES BY THE END OF NINETEEN NINETY FIVE STARTING OUT WITH PARTS OF CHICAGO MILWAUKEE AND DETROIT THE FOUR POINT FOUR BILLION DOLLARS IS IN ADDITION TO TWENTY FOUR POINT SIX BILLION DOLLARS OVER FIFTEEN YEARS THAT THE CHICAGO BASED BABY BELL HAS SAID IT WILL SPEND TO UPGRADE ITS NETWORK FOR AN AVERAGE OF ONE POINT SIX FOUR BILLION DOLLARS A YEAR AMERITECH HAS SPENT AN AVERAGE OF TWO BILLION DOLLARS A YEAR FOR THE PAST DECADE ON NETWORK UPGRADES EVERYONE'S TALKING ABOUT THE QUOTE THREE STRIKES YOU'RE OUT QUOTE LAW THAT PRESIDENT CLINTON ENDORSED THIS WEEK AND IS BEING CONSIDERED BY THIRTY STATES NOW WASHINGTON STATE WILL SOON PUT ON TRIAL THE FIRST DEFENDANT ACCUSED OF VIOLATING THAT STATE'S PATH BREAKING THREE STRIKES LAW APPROVED BY SEVENTY SIX PERCENT OF VOTERS LAST NOVEMBER HIS STORY MAKES CLEAR WHY THE IDEA OF SENTENCING SOMEONE CONVICTED OF THREE VIOLENT FELONIES TO LIFE IS SO POPULAR CECIL EMILE DAVIS A THIRTY FOUR YEAR OLD TACOMA MAN HAS A HISTORY OF VIOLENCE IN NINETEEN EIGHTY SIX HE WAS CONVICTED OF A MISDEMEANOR ASSAULT THE FIRST OF FOUR MISDEMEANOR ASSAULTS HE WOULD COMMIT OVER THE NEXT FEW YEARS HE WAS CONVICTED OF HIS FIRST VIOLENT FELONY LATER IN NINETEEN EIGHTY SIX AND A COURT GAVE HIM AN UNUSUALLY LONG THIRTY SIX MONTH SENTENCE FOR ROBBING A CONVENIENCE STORE AND USING EXTREME CRUELTY IN BEATING THE CLERK AND A CUSTOMER HE WAS RELEASED WITH TIME OFF FOR GOOD BEHAVIOR AFTER TWENTY FOUR MONTHS IN NINETEEN NINETY DAVIS WAS SENTENCED FOR A SECOND VIOLENT FELONY HE ATTACKED TWO PEOPLE WITH AN ICE PICK HIS PROBATION OFFICER RECOMMENDED AN EXTRAORDINARY SENTENCE OF SEVENTY TWO MONTHS BECAUSE OF ESCALATING ASSAULTS CONCERN FOR PUBLIC SAFETY AND FUTURE DANGEROUSNESS BUT THE JUDGE SENTENCED HIM TO ONLY THIRTY EIGHT MONTHS HE SERVED THIRTY TWO A FEW MONTHS LATER THE DAY AFTER THIS PAST CHRISTMAS DAVIS IS ACCUSED OF ABDUCTING A MENTALLY DISABLED TACOMA WOMAN AND TAKING HER TO HIS APARTMENT WHERE HE ALLEGEDLY RAPED HER SEVERAL TIMES HE THEN TOOK HER TO THE RECESSED STAIRWELL OF A NEARBY CHURCH BEAT HER AND SLIT HER THROAT WITH A KNIFE SHE FELL DOWN THE STAIRWELL AND WAS LEFT FOR DEAD WHEN FOUND SHE WAS UNABLE TO TALK BUT DREW A MAP TO DAVIS'S APARTMENT AND IDENTIFIED HIM FROM A PHOTO LINEUP UNDER CURRENT LAW DAVIS WOULD SPEND MANY YEARS IN PRISON BUT PIERCE COUNTY PROSECUTOR JOHN LADENBURG SAYS HIS EXPERIENCE IS THAT MAY NOT BE ENOUGH FOR SOME SOCIOPATHS THESE PEOPLE CAN COMMIT MURDER OR SEXUALLY MOLEST CHILDREN INTO THEIR FIFTIES AND SIXTIES HE TOLD US THE PUBLIC IS SAYING IT WANTS THOSE PEOPLE OFF THE STREETS HE TOLD US WASHINGTON STATE OFFICIALS REPORT THE THREE STRIKES LAW IS LIKELY TO AFFECT ONLY ABOUT THIRTY TO SIXTY HARD CORE CRIMINALS A YEAR A MANAGEABLE BURDEN FOR THE STATE'S PRISON SYSTEM BUT IT MIGHT SNARE SOME PROVEN REPEAT THUGS SUCH AS CECIL DAVIS LAW ENFORCEMENT OFFICIALS AGREE THAT SEVEN OUT OF TEN VIOLENT CRIMES ARE COMMITTED BY ONLY SIX PERCENT OF VIOLENT CRIMINALS SADLY THE BIGGEST CAUSE OF VIOLENT CRIMES IN AMERICA TODAY IS THE EARLY RELEASE OF VIOLENT CRIMINALS WHO COMMIT MORE VIOLENCE THE AUTHORS OF WASHINGTON STATE'S THREE STRIKES LAW ARE NOW DRAFTING A HARD TIME FOR ARMED CRIME INITIATIVE IT WOULD INCREASE THE SENTENCE FOR USING A FIREARM IN A VIOLENT CRIME BY FIVE YEARS DOUBLE THE BASE SENTENCE IF THE OFFENDER HAS PREVIOUSLY BEEN CONVICTED OF USING A DEADLY WEAPON DURING A CRIME AND ELIMINATE TIME OFF FOR GOOD BEHAVIOR FOR THE TIME TACKED ON FOR THE USE OF A WEAPON SOME CRIMINOLOGISTS OBJECT THAT TOUGH SENTENCING LAWS HAVE DONE LITTLE TO REDUCE THE CRIME RATE BUT DAN LUNGREN CALIFORNIA'S ATTORNEY GENERAL THINKS QUOTE INCARCERATION DOES WORK QUOTE HE NOTES THAT HIS STATE'S CRIME RATE IS NOW BELOW WHAT IT WAS IN NINETEEN EIGHTY WHEN IT BEGAN LOCKING UP MORE FELONS OTHERS ARGUE THAT A THREE STRIKES LAW WOULD BURDEN A STATE WITH MANY OLD PRISONERS WHOSE CRIME COMMITTING DAYS ARE OVER JOHN CARLSON PRESIDENT OF THE WASHINGTON INSTITUTE FOR POLICY STUDIES POINTS OUT THAT A STATE GOVERNOR CAN COMMUTE ANY SENTENCE OR PARDON ANY CRIMINAL FINALLY AND MOST RELEVANT TO THIS LATEST TURN IN THE POLITICS OF CRIMEFIGHTING THERE IS THE ROOT CAUSES SCHOOL OF CRIME IT HAS BEEN AROUND A LONG TIME ITS ADHERENTS HAVE RUN SOCIAL SERVICE AGENCIES ADMINISTERED LOCAL CRIMINAL JUSTICE SYSTEMS AND OCCUPIED MANY JUDGESHIPS AT EVERY LEVEL OUR READING WOULD BE THAT IN NINETEEN NINETY THREE THE AMERICAN PUBLIC CONCLUDED THAT THIS SCHOOL HAD FAILED THEIR GREATER FAILURE WAS IN THINKING THEY COULD STILL RETAIN CONTROL OF THE ISSUE BY DEMONIZING THEIR CRITICS AS IDEOLOGUES AND SIMPLISTIC EVEN AS THE HORROR OF SPECIFIC CRIMINAL ACTS INTENSIFIED THIS WAS POLITICAL DENIAL AND EVENTUALLY A DISGUSTED PUBLIC SHOVED THEM ASIDE YES IT SHOULD STILL BE POSSIBLE TO TALK ABOUT IMPROVING ECONOMIC OPPORTUNITIES AND EDUCATION BUT HERE TOO THE ROOT CAUSES PEOPLE ARE GENERALLY ALLIED WITH THE INTERESTS THAT ARE TRYING TO THWART ALTERNATIVES TO THE STATUS QUO ESPECIALLY IN EDUCATION THOSE STRATEGIES IN ANY EVENT ARE OPERATING ON A LONGER TIME FRAME THAN THE NATIONAL NINE HUNDRED ELEVEN CALL THE AMERICAN PEOPLE ARE SENDING OUT ON VIOLENT CRIME WITH THREE STRIKES AND YOU'RE OUT THE PUBLIC HAS DECIDED THAT THEIR CITIES AND NEIGHBORHOODS WILL NO LONGER BE PLAYGROUNDS FOR CRIMINALS STOCK MUTUAL FUNDS PULLED IN A RECORD NET INFLOW OF FOURTEEN POINT FIVE BILLION DOLLARS FROM INVESTORS IN DECEMBER AND FUND EXECUTIVES SAY JANUARY'S INFLOWS MAY SOAR EVEN HIGHER POWERED BY RETIREMENT PLAN AND OTHER YEAR END MONEY JANUARY IS QUOTE A GREAT MONTH QUOTE FOR FUND SALES SAYS STEPHEN GIBSON A MANAGING DIRECTOR AT MARSH AND MCLENNAN SECURITIES CORPORATION'S PUTNAM INVESTMENTS THIS MOMENTUM SHOULD CARRY OVER INTO FEBRUARY AS INVESTORS CONTINUE TO MOVE BONUSES AND YEAR END RETIREMENT SUMS OUT OF MONEY MARKET FUNDS INTO STOCK AND BOND FUNDS THE HUGE CASH INFLOW INTO STOCK FUNDS IN DECEMBER CAPPED THE BIGGEST YEAR IN HISTORY FOR MUTUAL FUND SALES ALL TOLD STOCK FUNDS ATTRACTED A RECORD ONE HUNDRED TWENTY EIGHT BILLION DOLLARS IN NINETEEN NINETY THREE FAR ABOVE THE PRIOR RECORD OF SEVENTY EIGHT BILLION DOLLARS SET IN NINETEEN NINETY TWO FOR THE FIRST TIME ASSETS OF ALL MUTUAL FUNDS INCLUDING STOCK BOND AND MONEY MARKET FUNDS TOPPED TWO TRILLION DOLLARS AT THE END OF DECEMBER THE INFLUENCE OF STOCK FUNDS IS GROWING OVERSEAS FULLY HALF THE MONEY GOING INTO STOCK FUNDS IN DECEMBER WENT INTO THOSE INVESTING ABROAD ACCORDING TO A NEW YORK CONSULTING FIRM STRATEGIC INSIGHT THE CASH FLOW DATA COME FROM THE INVESTMENT COMPANY INSTITUTE A MUTUALFUND TRADE GROUP THEY MEASURE NEW SALES OF FUNDS COUNTING THE EFFECTS OF EXCHANGES AMONG FUNDS AND REDEMPTIONS REINVESTED DIVIDENDS AREN'T INCLUDED THE TORRENT OF MONEY INTO STOCK FUNDS BODES SUPPORT FOR THE STOCK MARKET HOWEVER FUND MANAGERS' RESERVES OF CASH WHICH CAN BE TAPPED TO PICK UP BARGAINS IN A DECLINING STOCK MARKET ARE FALLING DESPITE THE HUGE INFLOW OF CASH STOCK FUNDS' HOLDINGS OF CASH DWINDLED IN DECEMBER TO EIGHT POINT FIVE PERCENT OF STOCK FUND ASSETS DOWN FROM EIGHT POINT EIGHT PERCENT IN NOVEMBER JANUARY USUALLY BRINGS BIG CASH FLOWS INTO MUTUAL FUNDS MANY CORPORATE RETIREMENT PLANS MAKE DISTRIBUTIONS IN JANUARY AND INDIVIDUAL RETIREMENT ACCOUNTS BEGIN GETTING BIG INFLOWS IN PREPARATION FOR TAX SEASON BUT FUND EXECUTIVES SAID THE INFLOWS THIS MONTH ARE HEAVY EVEN BY SEASONAL STANDARDS THE MONEY COMES FROM MANY SOURCES OTHER THAN BANK CERTIFICATES OF DEPOSIT FUND EXECUTIVES SAY STATISTICS CONTINUE TO INDICATE THAT C. D.S HAVE DIMINISHED AS A MAJOR DRIVER OF FLOWS INTO MUTUAL FUNDS PUTNAM'S MR. GIBSON SAYS OTHER SOURCES INCLUDE BONUSES ROLLOVERS SALARIES AND LUMP SUM PAYMENTS MADE TO VICTIMS OF CORPORATE DOWNSIZING EACH WAVE OF LAYOFFS IS A BOON FOR MUTUAL FUNDS MR. GIBSON SAYS IN JANUARY SEVERAL FUND GROUPS INCLUDING T. ROWE PRICE ASSOCIATES INCORPORATED AND FIDELITY INVESTMENTS THE LARGEST FUND MANAGER IN THE U. S. SAY THEY HAVE SEEN RECORD INFLOWS INTO THEIR STOCK AND BOND FUNDS T. ROWE PRICE SAYS FLOWS INTO FUNDS INVESTING IN FOREIGN STOCKS ARE STRONG DESPITE TURMOIL IN SOME PACIFIC STOCK MARKETS BUT DOMESTIC STOCK FUNDS ALSO ARE PULLING IN BIG SUMS AT T. ROWE PRICE TEMPLETON FUNDS THE FOREIGN STOCK FUND DIVISION OF FRANKLIN RESOURCES INCORPORATED SAYS THAT INFLOWS IN JANUARY SET A NEW RECORD BEATING THE PRIOR HURDLE SET ONLY IN DECEMBER MOST FOREIGN STOCK MARKETS HANDILY OUTPERFORMED THE U. S. STOCK MARKET LAST YEAR ATTRACTING BIG SUMS OF MONEY THE POPULARITY OF INTERNATIONAL STOCK FUNDS ALSO REFLECTS SOME CONCERN OVER HIGH VALUATIONS IN THE U. S. MARKET SAYS GREGORY JOHNSON A SENIOR VICE PRESIDENT AT FRANKLIN FIDELITY SAYS IT HAS RECEIVED STRONG INFLOWS INTO ALL TYPES OF STOCK FUNDS IN JANUARY INCLUDING CONSERVATIVE AND AGGRESSIVE DOMESTIC STOCK FUNDS AS WELL AS INTERNATIONAL FUNDS COUNTING STOCK AND BOND FUNDS FIDELITY EXPECTS TO PULL IN TWO POINT NINE BILLION DOLLARS IN JANUARY AN AMOUNT GREATER THAN THE CASH FLOW INTO THE ENTIRE FUND INDUSTRY DURING ANY SINGLE MONTH OF NINETEEN EIGHTY NINE INVESCO FUNDS GROUP SAYS THE FLOW OF CASH INTO ITS FUNDS ACCELERATED IN JANUARY FROM DECEMBER DESPITE THE CONTROVERSY SURROUNDING ITS FORMER STAR MANAGER JOHN KAWESKE INVESCO FIRED MR. KAWESKE EARLY IN JANUARY FOR NOT REPORTING SOME PERSONAL STOCK TRADES BUT THE BIGGEST FUND FOR WHICH HE WAS A MANAGER INVESCO INDUSTRIAL INCOME HAS GOTTEN AN INFLOW OF FIFTY SEVEN MILLION DOLLARS IN JANUARY RAISING ITS ASSETS UNDER MANAGEMENT TO MORE THAN FOUR BILLION DOLLARS BOND FUND INFLOWS OF ONE HUNDRED FOURTEEN BILLION DOLLARS DURING NINETEEN NINETY THREE ALSO SET A RECORD BEATING THE ONE HUNDRED NINE BILLION DOLLARS THAT FLOWED INTO BOND FUNDS IN NINETEEN EIGHTY SIX BUT CASH FLOWS INTO BOND FUNDS DROPPED OFF LATE IN NINETEEN NINETY THREE AS INTEREST RATES SPIKED UP HURTING THE PERFORMANCE OF LONG TERM BOND FUNDS MOREOVER INVESTORS IN POPULAR MORTGAGE FUNDS SUFFERED DISAPPOINTING FULL YEAR RESULTS BOND FUNDS TOOK IN FIVE POINT EIGHT BILLION DOLLARS IN DECEMBER UP FROM FOUR POINT ONE BILLION DOLLARS IN NOVEMBER BUT STILL BELOW THE MONTHLY LEVELS IN MOST OF NINETEEN NINETY THREE GOVERNMENT BOND FUNDS INCLUDING THOSE INVESTING IN MORTGAGE BACKED SECURITIES HAD OUTFLOWS OF TWO POINT ONE BILLION DOLLARS IN DECEMBER CASH FLOWS INTO TAXABLE BOND FUNDS ROSE IN JANUARY AT SEVERAL FUND GROUPS AN OUTFLOW OF INVESTORS REDEEMING OR EXCHANGING OUT OF TAXABLE BOND FUNDS SUBSIDED AFTER DECEMBER WHEN RISING INTEREST RATES HURT BOND FUND RETURNS HIGHER TAXES AND THEIR DISCLOSURE IN QUOTE PAYCHECK SHOCK QUOTE IS DRIVING MANY INVESTORS INTO MUNICIPAL BOND FUNDS IN JANUARY SAYS NEAL LITVACK AN EXECUTIVE VICE PRESIDENT AT FIDELITY SALES OF TAX EXEMPT BOND FUNDS WERE UP FOUR FOLD FROM DECEMBER AT VANGUARD GROUP AND WERE ALSO UP SHARPLY AT FRANKLIN PUTNAM AND OTHER GROUPS INVESTOR SENTIMENT ROSE IN JANUARY ACCORDING TO A UNIVERSITY OF MICHIGAN INVESTOR SURVEY TO THE HIGHEST LEVEL SINCE THE SURVEY BEGAN IN JANUARY NINETEEN NINETY ONE BUT THE SURVEY SPONSORED BY FIDELITY ALSO FOUND THAT FEWER INVESTORS WERE PLANNING TO BUY STOCK FUNDS IN THE NEAR FUTURE ONE DOLLAR ONE VOTE FIDELITY INVESTMENTS HAS BEEN GRADUALLY CHANGING THE WAY ITS SHAREHOLDER VOTES GET COUNTED SINCE NOVEMBER IT HAS GOTTEN SHAREHOLDERS AT TWENTY FUNDS TO APPROVE DOLLAR BASED VOTING ON PROXIES IN WHICH EACH HOLDER'S VOTE IS WEIGHTED BY THE DOLLAR SIZE OF THE HOLDING NOT THE NUMBER OF SHARES HELD FUND GROUPS SUCH AS FIDELITY OFTEN FOLD MANY INDIVIDUAL FUNDS INTO A SINGLE TRUST THE PRICE OF A SINGLE SHARE CAN VARY FROM FUND TO FUND AN INVESTOR PUTTING SEVENTY DOLLARS INTO ONE FUND MIGHT BUY A SINGLE SHARE WHILE ANOTHER WITH SEVENTY DOLLARS MIGHT BUY TEN SHARES OF ANOTHER FUND IN THE SAME TRUST DOLLAR BASED VOTING WOULD GIVE BOTH INVESTORS THE SAME SAY IN PROXY VOTES FIDELITY SAYS THE CHANGE IN VOTING WILL EVENTUALLY APPLY TO ALL ITS FUNDS ONE FUND WITH THE PROPOSAL UP FOR A VOTE IS GIANT MAGELLAN EVEN THOUGH THERE ARE NO OTHER FUNDS IN MAGELLAN'S TRUST FRANKLIN'S FEES FRANKLIN RESOURCES IS ASKING SHAREHOLDERS TO APPROVE SOME FEE CHANGES IT WANTS TO ELIMINATE THE SALES CHARGE IT IMPOSES ON REINVESTED DIVIDENDS AN UNUSUAL PRACTICE IN AN INDUSTRY WHERE MOST COMPANIES DON'T CHARGE SUCH A SALES LOAD ON REINVESTED PAYOUTS BUT FRANKLIN ALSO WANTS TO RAISE THE FRONT END SALES CHARGE ON ITS FUNDS TO A MAXIMUM OF FOUR POINT FIVE PERCENT FOR MOST STOCK FUNDS AND FOUR POINT TWO FIVE PERCENT ON BOND FUNDS UP FROM FOUR PERCENT ON BOTH AND IT'S ASKING PERMISSION TO LEVY SO CALLED TWELVE B. ONE ANNUAL FEES WHICH ARE SMALL BUT RECURRING SALES CHARGES THAT COMPENSATE BROKERS THE NEW TWELVE B. ONE FEES WILL BE SMALLER THAN THOSE LEVIED BY MANY OTHER FUND GROUPS BUT THEIR LEVELS WILL GRADUALLY RISE THE JOCKS AND COACHES UNION THAT CUTS ACROSS SPORTS LINES NO LESS REAL FOR BEING UNOFFICIAL HAS DECREED THAT LOSING IS AKIN TO DEATH AND MORE THAN A BIT SHAMEFUL ENTER A LOSERS' LOCKER ROOM AFTER THE LEAST IMPORTANT GAME AND YOU'RE LIKELY TO FIND THE PLAYERS STRIKING DEJECTED POSES BARELY ABLE TO SPEAK FOR HUMILIATION AND CHAGRIN ANY OTHER SORT OF BEHAVIOR WOULD PUT THEM AT RISK OF BEING CONSIDERED INSUFFICIENTLY SERIOUS THE FACT IS HOWEVER THAT LOSING IS THE COMMON LOT OF THOSE WHO ENGAGE IN SPORTS EXCEPT FOR ROCKY MARCIANO AND THE OCCASIONAL RACEHORSE EVERYBODY LOSES SOMETIME AND DEPENDING ON HOW YOU DEFINE IT MOST LOSE MOST OF THE TIME IF THE LATE FOOTBALL COACH GEORGE ALLEN WAS CORRECT WHEN HE SAID QUOTE EVERY TIME YOU WIN YOU'RE REBORN WHEN YOU LOSE YOU DIE A LITTLE QUOTE FEW ATHLETES WOULD REACH THEIR MAJORITY THE SUBJECT OF WINNING AND LOSING UNADORNED IS ESPECIALLY APT THIS WEEK IN THIS SOUTHERN METROPOLIS SITE OF THE PROFESSIONAL FOOTBALL CHAMPIONSHIP SUPER BOWL BETWEEN THE DALLAS COWBOYS AND BUFFALO BILLS THE CONTEST WON'T BE PLAYED OUT UNTIL SUNDAY BUT ONE TEAM THE DEFENDING CHAMPION COWBOYS ALREADY HAS BEEN CAST IN THE ROLE OF WINNER AND ITS FOE ASSIGNED THE LESS DESIRABLE PART INDEED BECAUSE THEY LOST THIS GAME THE PAST THREE TIMES IT WAS PLAYED THE BILLS HAVE BEEN TREATED AS IF THEY HAVE A LOT OF NERVE BEING HERE AT ALL THIS PERCEPTION PERSISTS ALTHOUGH ALL AND SUNDRY KNOW THAT THE BILLS ARE AT WORST A VERY GOOD CLUB WINNERS OF FIFTY EIGHT OF SEVENTY SIX OVER THE PAST FOUR SEASONS ONE OF THEIR VICTORIES IN THE CURRENT CAMPAIGN WAS OVER THE COWBOYS YET JIMMY JOHNSON THE DALLAS COACH HAS BEEN PERMITTED TO TURN EVERY INTERVIEW SESSION INTO A SERMON ON SUCCESS THE DISTILLATION OF HIS WISDOM IS THAT WINNING IS SOMETHING THAT'S ACCOMPLISHED BY WINNERS AS IN WE HAVE WINNERS EVERYWHERE IN OUR ORGANIZATION WHILE MARV LEVY HIS BUFFALO COUNTERPART IS ASKED TO SECOND GUESS HIS PAST PRACTICES THE PAST IS HISTORY LEVY INSISTS HE'S SURELY RIGHT ABOUT THIS HE'S A HARVARD MAN AFTER ALL BUT WE TREAT HIS WORDS WITH SKEPTICISM IT'S BEEN ASSERTED THAT LEVY'S SIN THE FAILURE TO WIN THE BIG ONE IS UNIQUELY GRIEVOUS IN FOOTBALL WE DON'T HEAP SIMILAR SCORN UPON SAY BASEBALL PENNANT WINNERS WHO DON'T WIN THE WORLD SERIES OR UNSUCCESSFUL FINALISTS IN THE N. C. A. A. BASKETBALL TOURNEY MAYBE NEXT YEAR WE'LL TRY THE WORLD SERIES LEVY SAID WEDNESDAY IN RESPONSE TO ONE QUESTION ALONG THOSE LINES THERE MAY BE A POINT THERE IT HAS BEEN FOOTBALL THE GAME CLOSEST TO WAR THAT'S PRODUCED OUR MOST MEMORABLE AND ABSOLUTE QUOTES ABOUT WINNING AND LOSING WINNING ISN'T EVERYTHING IT'S THE ONLY THING QUOTE USUALLY IS ATTRIBUTED TO VINCE LOMBARDI BUT THE REFERENCE BOOKS SAY HENRY QUOTE RED QUOTE SANDERS ANOTHER OLD FOOTBALL COACH REALLY SAID IT GOOD LOSERS GET INTO THE HABIT OF LOSING SAID KNUTE ROCKNE WITHOUT WINNERS THERE WOULDN'T BE ANY GODDAMNED CIVILIZATION SAID WOODY HAYES BUT ALL THOSE GUYS WERE COACHES AND A COUPLE DAYS OF QUOTE SHAGGING HERE THIS WEEK SUGGESTS THAT THEIR TROOPS ER PLAYERS MAY HAVE SOMEWHAT DIFFERENT IDEAS FOOTBALL IS A TEAM GAME WHICH MEANS THAT CREDIT OR BLAME USUALLY IS COLLECTIVE RATHER THAN INDIVIDUAL THAT THIS IS AN IDEA MANY FOOTBALL PLAYERS FIND COMFORTING IS SEEN IN THEIR WILLINGNESS TO ABSOLVE FROM BLAME THOSE OF THEIR NUMBER WHO MAY HAVE BEEN MORE RESPONSIBLE THAN MOST FOR MEMORABLE DEFEATS YES BUFFALO KICKER SCOTT NORWOOD NO LONGER WITH THE TEAM DID MISS THE LAST PLAY FIELD GOAL THAT WOULD HAVE WON THE BILLS' FIRST SUPER BOWL APPEARANCE IN NINETEEN NINETY ONE BUT HE WAS A FINE FELLOW WHO HELPED WIN OTHER GAMES AND ONE SHOULDN'T OVERLOOK OTHER PLAYERS' MISCUES THAT DAY AS HIS TEAMMATES STILL CHORUS AND YES LEON LETT THE DALLAS DEFENSIVE LINEMAN DID COST HIS TEAM A THANKSGIVING DAY VICTORY OVER MIAMI WHEN HIS ILL ADVISED SWIPE AT THE BALL AFTER A MISSED FIELD GOAL TURNED INTO A COWBOY FUMBLE BUT THAT TOO WAS FORGIVABLE WE GAVE LEON A BALL WITH A PIECE OF STRING TIED TO IT LATER BUT THAT WAS A TEAM THING HE KNEW WE WERE KIDDING AVERRED RUSSELL MARYLAND LETT'S LINEMATE INSIGHT INTO HOW A LARGE DOSE OF DEFEAT CAN BE LESS THAN LETHAL IS PROVIDED BY THE BILLS' STEVE TASKER HE'S AN UNUSUAL PLAYER IN A COUPLE OF RESPECTS AT FIVE FOOT NINE AND ONE HUNDRED EIGHTY POUNDS HE'S AN ORDINARY SIZE MAN IN A GIANTS' GAME HE WAS A PART TIME PLAYER IN COLLEGE WHO HAS MADE A TEN YEAR PROFESSIONAL CAREER IN THAT ROLE AS A MEMBER OF THE SO CALLED SPECIAL TEAMS THAT COVER AND RETURN KICKS TASKER COMES FROM LEOTI KANSAS A TOWN THAT HE SAYS HAS ONE BLINKING TRAFFIC SIGNAL AND A SINGLE ONE WAY STREET WHICH RUNS IN FRONT OF THE ELEMENTARY SCHOOL HE MAINLY RAN TRACK IN HIGH SCHOOL AND UNRECRUITED ATTENDED A COMMUNITY COLLEGE FOR A YEAR FROM THERE HE WENT TO NORTHWESTERN UNIVERSITY AN ESTIMABLE INSTITUTION BUT A PERENNIAL FOOTBALL NONPOWER THE TEAMS HE PLAYED ON THERE MOSTLY AS A KICK RETURNER WON BUT SEVEN OF THIRTY THREE GAMES SIGNED BY THE HOUSTON OILERS AS A SPECIAL TEAMER FOR HIS SPEED TASKER WAS WAIVED IN NINETEEN EIGHTY SIX AFTER SUFFERING TWO SERIOUS KNEE INJURIES IN AS MANY SEASONS BUFFALO PICKED HIM UP FOR THE SAME CHORES HE'S MADE THE PRO BOWL FIVE TIMES SINCE IN THAT CAPACITY AND WAS NAMED THE MOST VALUABLE PLAYER OF LAST YEAR'S GAME QUOTE MOST GUYS WHO COME TO THE PROS WERE STARS IN COLLEGE AND CONSIDER SPECIAL TEAMS A STEP DOWN NOT ME HE SAYS OF HIS PROWESS TASKER THINKS HIS NORTHWESTERN YEARS WERE WORTHWHILE DESPITE THE DEARTH OF VICTORIES WE ACCOMPLISHED SOME THINGS THERE THAT WERE GOOD FOR THE FOOTBALL PROGRAM AND I LOVED JUST PLAYING HE SAYS HE'S LIKED BEING A PRO MORE BECAUSE I'VE SHOWED I CAN DO WHAT I DO AT THE VERY HIGHEST LEVEL HE GOES ON IF WE LOSE AGAIN I'M SURE SOME PEOPLE WILL CONTINUE TO DEFINE US BY OUR LOSSES BUT I WON'T I'LL RECALL BEING A MEMBER OF SOME VERY GOOD TEAMS VINCE LOMBARDI SAID WHAT HE DID SAY WAS QUOTE WINNING ISN'T EVERYTHING BUT MAKING THE EFFORT TO WIN IS QUOTE HE ALSO SAID IF YOU CAN'T ACCEPT LOSING YOU CAN'T WIN MAYBE HE REALLY WAS A SAINT MAYBE STEVE TASKER IS TOO AND MAYBE THE BILLS WILL WIN THE VINCE LOMBARDI TROPHY ON SUNDAY IT MAY HAVE TAKEN AN EARTHQUAKE BUT THE DISASTER THAT BEFELL THIS CITY ELEVEN DAYS AGO HAS GALVANIZED ITS NEW MAYOR MULTI MILLIONAIRE LAWYER AND INVESTOR RICHARD RIORDAN REVERSING A LACKLUSTER FIRST SIX MONTHS IN OFFICE FOR THE FIRST TIME THE MAYOR SEEMS TO BE HEEDING HIS OWN CAMPAIGN RHETORIC THAT A BIG CITY CAN BE RUN LIKE A BIG BUSINESS WITH AN EFFICIENT CHIEF EXECUTIVE AT THE HELM THE MAYOR SIXTY THREE YEARS OLD WAS ELECTED IN JUNE WITH A PROMISE TO RESTRUCTURE THE CITY'S GOVERNMENT AND ECONOMY HE NOW FACES THE EVEN MORE DAUNTING TASK OF REBUILDING PHYSICAL SECTIONS OF LOS ANGELES ITSELF FRESH IN THE CITY'S MEMORY IS THE PERFORMANCE UNDER FIRE OF ANOTHER MAYOR TOM BRADLEY THE STIFF AND DOUR SHARECROPPER'S SON AND FORMER COP WHO HELD ON TO CITY HALL FOR TWENTY YEARS WHEN RIOTS ERUPTED HERE IN APRIL NINETEEN NINETY TWO THE HARSH GLARE OF LOCAL AND NATIONAL MEDIA FOUND HIM WANTING NOW ANOTHER WRENCHING OF THE CITY HAS THRUST MR. RIORDAN INTO THE SPOTLIGHT AS BOTH PETITIONER AND CHEERLEADER HIS ROLE IN GUIDING THE CITY'S RECONSTRUCTION WILL DEFINE HIS MAYORALTY QUOTE WHETHER TRUE OR NOT IT'S THE VOTERS' PERCEPTION THAT THE MAYOR SHOULD BE IN CHARGE AND IF HE ISN'T HE'S GOT A VERY REAL POLITICAL PROBLEM QUOTE SAYS SHERRY BEBITCH JEFFE SENIOR ASSOCIATE AT THE CENTER FOR POLITICS AND ECONOMICS AT THE CLAREMONT GRADUATE CENTER THE MAYOR A REPUBLICAN WHO MAINTAINS SUCH CLOSE TIES WITH DEMOCRATS THAT HE HAS JOGGED WITH PRESIDENT CLINTON HAS WON PRAISE FOR HIS EARLY HANDLING OF THE QUAKE'S DEVASTATION TRANSPORTATION SECRETARY FEDERICO PENA WHO HAS BEEN WORKING CLOSELY WITH HIM COMPLIMENTS THE MAYOR FOR BRINGING A VERY BUSINESS LIKE PERSPECTIVE TO THINGS AS WELL AS AN ABILITY TO STIMULATE PEOPLE HOUSING AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS SAYS THIS IS THE BEST ORGANIZED AND BEST EXECUTED EMERGENCY RESPONSE THAT WE HAVE SEEN UNTIL THE SHOCK OF THE QUAKE WHICH MEASURED SIX POINT SIX ON THE RICHTER SCALE EMANATED FROM THE DENSELY POPULATED NORTHRIDGE AREA OF LOS ANGELES MR. RIORDAN A TRIM MAN WITH THINNING GRAY HAIR AND AN ESTIMATED ONE HUNDRED MILLION DOLLARS FORTUNE SEEMED TO HAVE A SURFEIT OF POLITICAL PROBLEMS SINCE HIS INAUGURATION MR. RIORDAN HAS TURNED IN A VERY MIXED PERFORMANCE SAYS LARRY L. BERG PROFESSOR OF POLITICAL SCIENCE AT THE UNIVERSITY OF SOUTHERN CALIFORNIA AND DIRECTOR OF THE JESSE UNRUH INSTITUTE OF POLITICS LITTLE ABOUT MR. RIORDAN SEEMS TO HAVE INSPIRED COMMENTATORS OR THE PUBLIC BEFORE THE QUAKE A RESIDENT OF LOS ANGELES'S AFFLUENT WEST SIDE ELECTED WITH HEAVY SUPPORT FROM THE MOSTLY MIDDLE CLASS SAN FERNANDO VALLEY THE AREA HIT HARDEST BY THE EARTHQUAKE MR. RIORDAN HAD PLEDGED A MANAGEMENT REVOLUTION AT CITY HALL HE HAD SHOWN FLASHES OF PROMISE IN HIS FIRST MONTHS BY WOOING A CITY COUNCIL LONG ESTRANGED UNDER HIS PREDECESSOR AND WITH A VICTORY AGAINST AIRLINES IN A HIGHLY PUBLICIZED LANDING FEES DISPUTE AT LOS ANGELES AIRPORT BUT ONGOING GOOFS HAVE MADE HIS PROMISED REVOLUTION LOOK MORE LIKE A WOODY ALLEN SKIT THERE HAVE BEEN CLUMSY MOSTLY FORCED DEPARTURES OF FIVE TOP OFFICIALS THE MAYOR'S PENCHANT FOR OFF COLOR JOKES BECAME EMBARRASSINGLY PUBLIC AN EFFORT TO WITHHOLD FORTY MILLION DOLLARS FROM CITY WORKERS' PENSION FUNDS DREW JEERS AND IN A GRACELESS MOMENT DURING LAST FALL'S DESTRUCTIVE WILDFIRES MR. RIORDAN ANNOUNCED THAT THANKFULLY FEW OF THE CHARRED STRUCTURES WERE WITHIN CITY LIMITS DUMB SAYS PROFESSOR BERG MR. RIORDAN HOWEVER SEEMS TO HAVE BEEN SHAKEN AWAKE BY THE EARTHQUAKE QUOTE THIS IS AN ISSUE THAT PLAYS TO HIS STRENGTH A TANGIBLE NUTS AND BOLTS DISASTER QUOTE SAYS RAPHAEL SONENSHEIN A PROFESSOR OF POLITICAL SCIENCE AT CALIFORNIA STATE UNIVERSITY WILLIAM OUCHI MANAGEMENT PROFESSOR AUTHOR OF THE POPULAR BUSINESS BOOK THEORY Z. AND NOW AN ADVISER TO THE MAYOR SAYS MR. RIORDAN'S CRISIS MANAGEMENT EXPERIENCE HAS BEEN HONED IN PART BY DOING FINANCIAL DEALS IN EFFECT HE HAS BEEN COORDINATING LOTS OF PEOPLE UNDER PRESSURE IN COMPLEX SITUATIONS FOR YEARS IN RECENT DAYS MR. RIORDAN HAS EMERGED AS AN UNORTHODOX PRACTITIONER OF THE ART OF POLITICS HOPPING BLITHELY OVER RED TAPE AND ACROSS PARTISAN DIVIDES HE IS GIVEN TO STRAIGHT TALK WITH THE LIKES OF PRESIDENT CLINTON AND CALIFORNIA GOVERNOR PETE WILSON TO SUDDEN CAR PHONE CALLS TO CITY OFFICIALS TO GET THINGS DONE IMMEDIATELY AND TO SHOWING HIS IMPATIENCE WITH CAUTIOUS BUREAUCRATS THE MAYOR VALUES INFORMAL CONSULTATION MR. RIORDAN IS MUCH MORE OF A HANDS ON GUY THAN MAYOR BRADLEY SAYS IRWIN BAKER A REPORTER WHO HAS COVERED CITY HALL FOR MORE THAN TWO DECADES FOR THE LOS ANGELES TIMES CITY COUNCIL MEMBERS HAVE BEEN SURPRISED TO FIND THE MAYOR OCCASIONALLY BUTTONHOLING BUREAUCRATS AND CHATTING WITH PASSERSBY IN THE CORRIDERS OF CITY HALL THE RESTLESS MR. RIORDAN OFTEN TRAVELS THE STREETS OF LOS ANGELES IN HIS RASPBERRY COLORED FORD EXPLORER LINKED BY PHONE TO HIS OFFICE DECISIONS ARE MADE ON THE FLY WHEN HE SAW THOUSANDS OF NEWLY HOMELESS ANGELENOS TAKE TO PARKS AFTER THE QUAKE MR. RIORDAN TOLD AN AIDE TO CALL MAKERS OF PLASTIC SHEETING AND ASK THEM TO DONATE A QUANTITY TO HELP THE SHELTER EFFORT GOOD INSTINCTS PERHAPS BUT CITY OFFICIALS ALREADY HAD ORDERED THE PLASTIC AT COMMERCIAL PRICES DURING A WALK NEAR THE EPICENTER OF THE QUAKE MR. RIORDAN LISTENED AS A RESIDENT COMPLAINS THAT POOR PLANNING ALLOWED A BURIED PIPELINE FULL OF CRUDE OIL TO RUN IN FRONT OF AN ELEMENTARY SCHOOL THE MAYOR TURNS TO A NEARBY WORK CREW AND IS TOLD THAT THE LINE WHICH BURST INTO FLAMES AFTER THE QUAKE WAS INSTALLED IN NINETEEN TWENTY FIVE LONG BEFORE THE SCHOOL CHATTING SOME MORE MR. RIORDAN NODS AS ANOTHER NEIGHBOR SUGGESTS RESIDENTS AND SCHOOL OFFICIALS BE TOLD WHERE PIPELINES ARE BURIED WE'LL GET IT DONE HE SAYS AS AN AIDE MAKES A NOTE LARGELY UNHAMPERED BY THE CAUTION AND ALLIANCES OF MANY LONG TIME POLITICIANS THE MAYOR REACHES AGREEMENTS SWIFTLY SOMETIMES LETTING CREDIT OR APPARENT VICTORY GO TO THE OTHER SIDE THE MOST IMPORTANT THING RIGHT NOW I THINK IS TO NOT LET TURF BATTLES GET IN THE WAY HE SAYS QUOTE I DON'T WORRY ABOUT GETTING CREDIT IF I DO A GOOD JOB PEOPLE WILL KNOW HIGH ON MR. RIORDAN'S AGENDA HAS BEEN A BEHIND THE SCENES CAMPAIGN TO ENCOURAGE STATE TRANSPORTATION OFFICIALS TO SPEED UP VITAL FREEWAY REPAIRS IN A QUIET EVENING PHONE CONVERSATION WITH GOVERNOR WILSON MR. RIORDAN NOTES THAT PLANNERS ARE TALKING ABOUT A PAINFULLY LONG YEAR OR MORE TO MAKE BADLY NEEDED REPAIRS WITHIN A DAY STATE ENGINEERS START TALKING ABOUT SWIFTER ACTION POSSIBLE SHORTCUTS INCLUDE CONTRACTING WITH PRIVATE ENGINEERING FIRMS FOR WORK USUALLY DONE WITHIN THE STATE BUREAUCRACY PRIVATIZATION WAS A CENTERPIECE OF MR. RIORDAN'S CAMPAIGN WITH HIS PROPOSAL THAT THE OPERATION OF THE CITY'S AIRPORT BE LEASED OUT MR. RIORDAN RETURNS THE GOVERNOR'S FAVOR WHEN HE LEARNS THAT GOVERNOR WILSON HASN'T BEEN INVITED TO MEET PRESIDENT CLINTON AT THE AIRPORT DURING HIS TRIP TO LOS ANGELES AFTER THE QUAKE A SURPRISED MAYOR PUTS THE GOVERNOR ON HOLD AND MAKES ARRANGEMENTS TO GET HIM INVITED I DON'T SEE ANY REASON TO RILE THE GOVERNOR HE TELLS AN AIDE THE MAYOR DOESN'T SHY AWAY FROM COZY RELATIONSHIPS WITH DEMOCRATS IN THE PAST HE HAS CONTRIBUTED SUBSTANTIALLY TO BOTH PARTIES HE HAS WORKED SWIFTLY TO FORGE A CLOSE RELATIONSHIP WITH SECRETARY PENA A FORMER MAYOR HIMSELF THOUGH POLITICAL MEALS OFTEN TAKE ON THE TRAPPINGS OF STATE BANQUETS MR. RIORDAN WHO IS SEPARATED FROM HIS SECOND WIFE LIKES THE INFORMAL APPROACH LAST WEEK MR. PENA WAS INVITED OVER FOR DINNER WITH MR. RIORDAN AND HIS STEADY COMPANION NANCY DALY THE ESTRANGED WIFE OF WARNER BROTHERS CHAIRMAN BOB DALY JUST THE THREE OF US IT WAS VERY PLEASANT MR. RIORDAN SAYS THE MAYOR SEEMS IMPATIENT WITH THE CONVENTIONAL MECHANICS OF GOVERNMENT PLANNING WHEN THREE DOZEN TRANSPORTATION AGENCY REPRESENTATIVES GATHER TO DISCUSS CITY'S PLIGHT MR. RIORDAN LISTENS FOR A WHILE THEN SWIFTLY TICKS OFF HIS LIST OF PRIORITIES THERE SHOULD BE A DAILY MEETING HE SUGGESTS BUT WE DON'T WANT A DOG AND PONY SHOW LIKE THIS THE FACT THAT HE'S BORED WITH THE MINUTIAE OF GOVERNMENT COMES THROUGH VERY CLEARLY MS. BEBITCH JEFFE SAYS STILL MR. RIORDAN AND HIS STAFF SWIFTLY ASSEMBLED A PLAN TO MINIMIZE TRAFFIC JAMS ENCOURAGING THE USE OF CARPOOLS AND PUBLIC TRANSPORTATION SYSTEMS TYPICAL OF RIORDAN EFFORTS THE PLANS EXPAND IN PRACTICAL WAYS ON EXISTING PROGRAMS SOME WHO HAVE WATCHED MR. RIORDAN FOR YEARS GRANT HIS STRENGTH IN SHORT TERM ATTENTION TO DETAIL BUT QUESTION HIS LONGER TERM SKILLS IN HANDLING DIFFUSE ISSUES OF SOCIAL CHANGE AND ECONOMIC MIASMA QUOTE HE TENDS TO DO POORLY IN SITUATIONS THAT AREN'T CLEAR CUT QUOTE SAYS PROFESSOR SONENSHEIN AND MR. RIORDAN STILL NEEDS TO CONVINCE IMPORTANT BLACK AND LATINO INTERESTS IN THE CITY THAT HE CAN DO SOMETHING FOR THEM BUT SOLVING THE CITY'S DEEP ECONOMIC AND RACIAL PROBLEMS HAS BEEN PUT ON HOLD WALKING INTO A CROWDED ENCAMPMENT SOON AFTER THE QUAKE THE MAYOR SEEMS MORE LIKE A REAL FATHER THAN A CITY FATHER TO THE SCARED RESIDENTS MANY OF THEM RECENT IMMIGRANTS FROM QUAKE PRONE CENTRAL AMERICA HE LISTENS PATIENTLY TO CONVERSATIONS IN FRACTURED ENGLISH THEN WHILE TALKING TO ONE WOMAN ABOUT HER PROBLEMS HE PULLS A CELLULAR PHONE FROM HIS POCKET AND CALLS HIS OFFICE PEOPLE ARE PUSHING EVERYWHERE BUT MR. RIORDAN HOLDS HIS GROUND IN A CALM VOICE HE RELAYS A LIST OF ITEMS THAT ARE ANYTHING BUT MUNDANE TO THESE PEOPLE THE MAYOR SAYS HE WANTS BATTERIES FLASHLIGHTS AND BLANKETS DELIVERED TO THE CAMP PRONTO OH AND ONE OTHER THING DIAPERS HE ASKS THE WOMAN IN FRONT OF HIM DIAPERS HE REPEATS INTO THE PHONE AS THE WOMAN NODS COLLAGEN CORPORATION SAID IT RECEIVED MARKETING CLEARANCE FROM THE FOOD AND DRUG ADMINISTRATION FOR ITS STRIP BONE GRAFT PRODUCT AMERICA ONLINE INCORPORATED SAID FISCAL SECOND QUARTER EARNINGS ROSE FIFTY FIVE PERCENT DUE TO A SURGE OF NEW SUBSCRIBERS THAT HAS CAUSED THE VIENNA VIRGINIA COMPANY QUOTE GROWING PAINS QUOTE THE COMPUTER ON LINE INFORMATION SERVICE SAID NET ROSE TO ONE POINT TWO MILLION DOLLARS OR SIXTEEN CENTS A SHARE FOR THE QUARTER ENDED DECEMBER THIRTY FIRST FROM SEVEN HUNDRED NINETY THOUSAND DOLLARS OR TWELVE CENTS A SHARE A YEAR EARLIER SALES ROSE TO TWENTY ONE POINT FIVE MILLION DOLLARS FROM NINE MILLION DOLLARS THE COMPANY SAID IT HAD DOUBLED ITS SUBSCRIBER BASE TO FIVE HUNDRED THIRTY ONE THOUSAND BUT THE RAPID GROWTH IN THE SERVICE WHICH PROVIDES ELECTRONIC CHAT FORUMS NEWS AND SOFTWARE HAS MADE IT DIFFICULT FOR ALL CUSTOMERS TO GET EASY ACCESS IN THE LAST FEW WEEKS DRAWING SOME COMPLAINTS THE COMPANY SAID BROADER DISTRIBUTION OF ITS SUBSCRIPTION SOFTWARE THROUGH BUNDLING AGREEMENTS WITH COMPUTER AND MODEM MANUFACTURERS AND INCREASED CONTENT HAS HELPED BOOST SUBSCRIPTIONS WHILE THE COMPANY DECLINED TO FORECAST PROFITS FOR THE QUARTER ENDING MARCH THIRTY FIRST ANALYSTS' ESTIMATES AVERAGE TWENTY ONE CENTS A SHARE THEY ALSO EXPECT SUBSCRIPTIONS TO REACH ONE MILLION IN SEPTEMBER THE HOUSE BANKING COMMITTEE DOING AN END RUN AROUND THE FEDERAL RESERVE OBTAINED THREE YEARS OF TRANSCRIPTS OF FED DELIBERATIONS FROM THE GERALD R. FORD LIBRARY IN ANN ARBOR MICHIGAN AND RELEASED EXCERPTS YESTERDAY PRODDED BY THE COMMITTEE THE FED RECENTLY AGREED TO RELEASE EDITED VERSIONS OF TRANSCRIPTS THAT ARE MORE THAN FIVE YEARS OLD BUT HASN'T YET DONE SO FED OFFICIALS ARE TO DECIDE NEXT MONTH WHETHER TO CONTINUE TO MAKE AND RELEASE TRANSCRIPTS OF FUTURE MEETINGS BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D. TEXAS SAID THE TRANSCRIPTS RELEASED BY THE COMMITTEE WHICH WERE EDITED BY THE NATIONAL ARCHIVES PROVE QUOTE THAT THE FEDERAL RESERVE HAS NO GROUNDS FOR KEEPING THIS INFORMATION SECRET QUOTE HE HAS PROPOSED THAT THE FED RELEASE TRANSCRIPTS OF ITS MEETINGS WITHIN SIXTY DAYS THE LATE ARTHUR BURNS WHO WAS CHAIRMAN OF THE FED GAVE THE FORD LIBRARY HIS PERSONAL PAPERS AND THREE THOUSAND PAGES OF TRANSCRIPTS OF FED POLICY MEETINGS FROM MARCH NINETEEN SEVENTY SIX THROUGH MARCH NINETEEN SEVENTY EIGHT THE FED HADN'T ANY COMMENT THREE HUNDRED DOLLARS BUYS A LITTLE OF ARUN ALAGAPPAN'S TIME AN HOUR BUT A LOT OF INFORMATION THE MEANING OF THE WORD QUOTE PAPAL QUOTE FOR EXAMPLE OR HOW TO HANDLE TWO VARIABLE EQUATIONS MR. ALAGAPPAN PRONOUNCED AL UH GUHPAN IS A PRIVATE TUTOR IN MANHATTAN WHO SPECIALIZES IN PREPARING STUDENTS TO TAKE STANDARDIZED TESTS INCLUDING THE SCHOLASTIC APTITUDE TEST PREREQUISITE FOR ADMISSION TO MOST UNDERGRADUATE COLLEGES AS SUCH HE HAS MADE A SMALL BUSINESS INTO A BIG MONEYMAKER DESPITE HIS HIGH COST OR MAYBE BECAUSE OF IT MR. ALAGAPPAN HAS DEVELOPED A FANATICAL FOLLOWING IN THE HIGHSTAKES HIGH PRESSURE WORLD OF COLLEGE PREPARATION SOMEWHERE BETWEEN SPECTACULAR AND INDESCRIBABLE SAYS FRANK BIONDI PRESIDENT AND CHIEF EXECUTIVE OF VIACOM INCORPORATED WHOSE DAUGHTER ANNE STUDIED WITH MR. ALAGAPPAN THE MOST WONDERFUL PERSON IN THE WORLD SAYS JUDITH HIRSCH A TAX ACCOUNTANT WHOSE DAUGHTER REBEKAH WAS ANOTHER ALAGAPPAN CLIENT SINCE MR. ALAGAPPAN TYPICALLY SEES KIDS FOR AN HOUR AND FORTY MINUTES A WEEK WHICH ADDS UP TO FIVE HUNDRED DOLLARS FOR TEN TO FIFTEEN WEEKS COSTS FOR ALL THAT WONDERFULNESS CAN QUICKLY MOUNT UP JAYME STEWART A HIGH SCHOOL GUIDANCE COUNSELOR FIGURES SHE HAS SPENT TWENTY TWO THOUSAND DOLLARS WITH MR. ALAGAPPAN OVER THE PAST SEVERAL YEARS GETTING HER SON AND TWIN DAUGHTERS THROUGH A BATTERY OF PRECOLLEGE TESTS COLLEGES SAY LARGE SUMS SPENT ON IMPROVING S. A. T. SCORES ARE MISPLACED IF THEY ARE GOING TO SPEND UPWARD OF TEN THOUSAND DOLLARS IT WOULD BE BETTER SPENT GETTING INVOLVED IN SOME OUTSIDE ACTIVITY SAYS DRUSILLA BLACKMUN DEAN OF UNDERGRADUATE ADMISSION AND FINANCIAL AID AT COLUMBIA UNIVERSITY AND EDUCATIONAL TESTING SERVICE WHICH ADMINISTERS THE S. A. T. DISPUTES MOST CLAIMS OF HIGHER SCORES ATTRIBUTED TO TUTORS IT SAYS RESEARCH SHOWS THAT ON AVERAGE FORTY HOURS OF COACHING CAN INCREASE A TEST SCORE BY ONLY THIRTY TO FIFTY POINTS MR. ALAGAPPAN SAYS HE DOES NOT TEACH TEST BEATING TECHNIQUES INSTEAD HE SAYS HE SYSTEMATICALLY DECONSTRUCTS PUBLISHED S. A. T. EXAMS AND TEACHES THE UNDERLYING MATHEMATICAL AND GRAMMATICAL PRINCIPLES THE TWO THOUSAND PLUS WORDS HE HANDS OUT TO MEMORIZE ABIDE STRIFE ALLEGORY FORGO EMBOLDEN AREN'T AN ARBITRARY SET OF WORDS HE SAYS QUOTE THEY ARE WORDS THAT ARE LINKED TO PERFORMANCE IN COLLEGE IF YOU READ MELVILLE YOU WILL SEE THE WORDS WE GIVE OUT HE BROKE THE MATH EXAM INTO FOURTEEN TYPES OF PROBLEMS LIKE FRACTIONS DECIMALS AND EXPONENTS AND TEACHES THE CONCEPTS BEHIND THE QUESTIONS HE TEACHES OLD FASHIONED MNEMONICS TACOS THE TOTAL AREA MINUS THE CUTOUT EQUALS THE SHADED REGION AND ASSOCIATIONS GREGARIOUS THINK OF GREG ON THE BRADY BUNCH A FRIENDLY AND OUTGOING PERSON THERE IS EVEN A SPECIAL VOCABULARY LIST OF WORDS MANHATTAN KIDS HAVE TROUBLE WITH THE TROUBLESOME CATEGORIES FARM ANIMALS BOVINE EQUESTRIAN FOAL GANDER EWE CHURCH CHAPEL CLERGY HEATHEN HYMN PAGAN AND SPORTS ERROR FUMBLE MITT GOAL A GRADUATE OF PRINCETON AND HARVARD LAW SCHOOL MR. ALAGAPPAN STARTED ADVANTAGE TESTING WHICH NOW HAS ABOUT TWENTY TUTORS IN NINETEEN EIGHTY SIX AFTER HAVING WORKED FOR A BIG MANHATTAN LAW FIRM NOW THIRTY FOUR YEARS OLD HE WAS BORN IN INDIA THE SECOND OF FOUR CHILDREN OF A UNITED NATIONS OFFICIAL IMMIGRATED HERE AT AGE TWO AND GREW UP IN THE NEW YORK CITY BOROUGH OF QUEENS EVERY SATURDAY MORNING MY DAD TOOK ME TO THE LIBRARY NOT TO BASEBALL GAMES HE SAYS I TOOK MY STUDIES VERY SERIOUSLY BUT EVEN MORE IMPORTANT THAN HIS KNOWLEDGE SOME STUDENTS SAY IS HIS CALMING INFLUENCE THE TWO GO HAND IN HANDNEUROSIS AND NEW YORK SAYS CLIENT TANYA FRIEDMAN NOW A SENIOR AT HARVARD QUOTE HE REALLY KNOWS THAT AND HE DOES HIS BEST TO ALLAY EVERYONE'S FEARS HE'S VERY RELAXING ANOTHER CLIENT MS. STEWART'S SON TRIPP SAYS OF MR. ALAGAPPAN HE GOT ME A GOOD ENOUGH SCORE TO GET ME INTO PRINCETON WHICH I CAN'T PRAISE HIM ENOUGH FOR TRIPP STEWART SAYS HIS SCORES JUMPED TO THIRTEEN HUNDRED FROM ONE THOUSAND FIFTY AFTER A YEAR'S TUTORING SOME OBSERVERS SEE THE POPULARITY OF MR. ALAGAPPAN'S AND OTHER PRIVATE TUTORING SERVICES AS A BYPRODUCT OF NEW YORK'S PRESSURE COOKER MENTALITY IN A LOT OF NEW YORK PRIVATE SCHOOLS THERE IS SUCH A HIGH PREMIUM PLACED ON GETTING INTO A COLLEGE WITH A NAME THAT GLOWS IN THE DARK SAYS STEPHEN SINGER DIRECTOR OF COLLEGE COUNSELING AT HORACE MANN SCHOOL IN RIVERDALE GEORGE MAYER RETIRED HEAD OF THE ENGLISH DEPARTMENT AT MANHATTAN'S TRINITY SCHOOL AND HIMSELF AN S. A. T. TUTOR SAYS THERE ARE A LOT OF WEALTHY PARENTS IN NEW YORK WHO ASSUME THAT THE MORE THEY PAY THE BETTER THE TUTORING IS WHICH IS STUPID THEY TEND TO ASSUME KIDS MUST HAVE S. A. T. TRAINING THE WAY THEY SEE AN ORTHODONTIST ADVANTAGE'S TOP TUTOR EARNS ABOUT ONE HUNDRED THOUSAND DOLLARS A YEAR MR. ALAGAPPAN WON'T DISCLOSE HIS OWN INCOME BUT SAYS HE TUTORS FOR ABOUT SIXTY HOURS A WEEK ELEVEN MONTHS OF THE YEAR AND ONLY RAISES HIS RATES WHEN HE GETS TWICE AS MANY REQUESTS FOR HIS SERVICES AS HE CAN FILL HE SAYS HE IS SENSITIVE TO CHARGES OF ELITISM HE AND HIS COMPANY TUTOR FIFTEEN PERCENT OF THEIR STUDENTS PRO BONO AND ALSO OFFER LESS EXPENSIVE TUTORS AND CLASSES FOR PEOPLE WHO CAN'T AFFORD MR. ALAGAPPAN HIMSELF AS FOR THE HIGH FEES CHARGED TO THOSE WHO CAN AFFORD THEM MR. ALAGAPPAN SAYS HIS CHARGES ARE DELIBERATELY HIGH HIS REASONING QUOTE MY STRONG AND EXPLICIT AGENDA WAS TO ATTRACT TO PRIVATE TEACHING PEOPLE WHO MIGHT PRACTICE OTHER PROFESSIONS BECAUSE THEY AREN'T GOING TO BE REWARDED FINANCIALLY FOR TEACHING QUOTE CAROLINE B. AUSTIN IS PRESIDENT OF DEMPSEY AND COMPANY A SPECIALIST FIRM ON THE CHICAGO STOCK EXCHANGE AN ARTICLE YESTERDAY INCORRECTLY REFERRED TO THE CHICAGO STOCK EXCHANGE BY ITS FORMER NAME THE MIDWEST STOCK EXCHANGE MANY CHILD CARE PROGRAMS FOR SCHOOL AGE KIDS FALL SHORT ON QUALITY A NATIONAL STUDY FINDS BEFORE AND AFTER SCHOOL PROGRAMS ARE MULTIPLYING FAST WITH MORE THAN ONE POINT SEVEN MILLION CHILDREN ENROLLED BY WORKING PARENTS TRYING TO AVOID THE HOME ALONE SYNDROME BUT THE FIRST NATIONAL STUDY OF SCHOOL AGE CHILD CARE AN EDUCATION DEPARTMENT SURVEY OF ONE THOUSAND THREE HUNDRED FOUR SITES RAISES QUESTIONS ABOUT FACILITIES AND ACTIVITIES WHILE THE PROGRAMS STUDIED KEEP CHILDREN SAFE AND SUPERVISED MANY LACK ADEQUATE SPACE FOR VARIED ACTIVITIES MANY DON'T PROVIDE A QUIET AREA FOR REST OR SEPARATE SPACE FOR SNACKS ACTIVE PLAY DRAMA OR CREATIVE ARTS IN ONE PROGRAM CHILDREN JUST SIT IN A CAFETERIA WITH NO PLAY EQUIPMENT IN MORE THAN A QUARTER OF THE PROGRAMS CHILDREN DON'T HAVE WEEKLY ACCESS TO A PLAYGROUND OR PARK RESEARCHERS DESCRIBED SUCH PROGRAMS AS QUOTE TOO CONFINING QUOTE AND QUOTE NOT PLEASANT PLACES TO BE FOR CHILDREN QUOTE MANY PROGRAMS DON'T OFFER MATH OR SCIENCE ACTIVITIES AND LESS THAN HALF TRY TO PROVIDE REMEDIAL HELP FOR CHILDREN HAVING TROUBLE IN SCHOOL STAFF PAY AND TURNOVER ARE WARNING SIGNALS AS WELL PAY FOR SENIOR PROGRAM STAFF AT SIX DOLLARS AND SEVENTY SEVEN CENTS AN HOUR IS EVEN LOWER THAN THE DISMAL SEVEN DOLLAR AND FORTY NINE CENT AVERAGE HOURLY PAY FOR PRESCHOOL TEACHERS AND MORE THAN HALF THE PROGRAMS LOSE SIXTY PERCENT OF THEIR STAFF ANNUALLY FORCING DIRECTORS TO SPEND A LOT OF TIME TRAINING NEW EMPLOYEES FOR EMPLOYERS THE STUDY PROVIDES A GLIMPSE OF SOME OF THE ISSUES PARENTS FACE IN FINDING CARE FOR SCHOOL AGE CHILDREN SAYS DIANNE KAPLAN DEVRIES OF R. M. C. RESEARCH THE PORTSMOUTH N. H. CONCERN THAT CONDUCTED THE STUDY WORK FAMILY ISSUES LONG PIGEONHOLED BY ACADEMIA IN THE SOCIOLOGY OR WOMEN'S STUDIES DEPARTMENTS ARE STARTING TO SURFACE AT BUSINESS SCHOOLS ACADEMICS AND BUSINESS LEADERS WILL GATHER FOR THE FIRST TIME ON FEBRUARY EIGHTEENTH AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL TO TALK ABOUT HOW TO ADD MATERIAL ON WORK FAMILY ROLE CONFLICTS TO THE BUSINESS SCHOOL CURRICULUM PROFESSORS FROM NINE UNIVERSITIES INCLUDING THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY THE UNIVERSITY OF MICHIGAN AND THE UNIVERSITY OF VIRGINIA AS WELL AS MANAGERS FROM XEROX MERCK AND SEVERAL CONSULTING FIRMS ARE EXPECTED TO ATTEND STEWART D. FRIEDMAN A WHARTON MANAGEMENT PROFESSOR WHO ORGANIZED THE MEETING SAYS PARTICIPANTS WILL DISCUSS HOW TO MAKE WORK FAMILY ISSUES FIT IN A SYSTEMATIC WAY INTO THE CULTURAL MAINSTREAM OF M. B. A. LIFE WHARTON IS ONE OF THE FIRST M. B. A. SCHOOLS TO INCLUDE WORK FAMILY ISSUES IN ITS REQUIRED COURSEWORK STUDENTS EXAMINE CASE STUDIES ON ISSUES FACED BY DUAL CAREER COUPLES JUGGLING MULTIPLE ROLES THEY ALSO BREAK UP INTO GROUPS BASED ON SEX MARITAL AND FAMILY ROLES AND TALK TO EACH OTHER ABOUT THE TENSIONS THAT CAN ARISE AMONG THOSE GROUPS DOCTOR FRIEDMAN SAYS IT CAN GET PRETTY HOT HE SAYS THE MEN MIGHT SAY YEAH I WANT MY WIFE AT HOME HAVING BABIES WHAT'S IT TO YOU AND WOMEN MIGHT SAY THEY RESENT STEREOTYPES AROUND FAMILY ROLES OR I'M NOT PLANNING TO HAVE KIDS AND DON'T CASTIGATE ME FOR THAT HE SAYS ONE MANAGER WHO PLANS TO ATTEND THE MEETING PERRY CHRISTENSEN MERCK'S DIRECTOR OF HUMAN RESOURCE STRATEGY AND PLANNING SAYS COMPANIES WOULD BENEFIT IF BUSINESS SCHOOL STUDENTS WERE QUOTE SENSITIZED QUOTE TO DIFFERING VIEWPOINTS ON WORK FAMILY ISSUES SHARON LOBEL A MANAGEMENT PROFESSOR AT SEATTLE UNIVERSITY WHO ALSO WILL ATTEND ADDS I THINK WE'LL SEE MORE AND MORE OF THIS KIND OF MATERIAL IN THE CURRICULUM AT M. B. A. SCHOOLS IN THE FUTURE THE AX FALLS ON WORK FAMILY PROGRAMS ONCE DEEMED IMMUNE FROM CUTBACKS THOUGH WORK FAMILY PROGRAMS ARE SO HIGH PROFILE THAT THEY TYPICALLY ARE SEEN AS SACRED COWS A FEW EMPLOYERS ARE SUBJECTING THEM TO COST CUTS KOHLER A KOHLER WISCONSIN PLUMBING FIXTURES MAKER CLOSED ITS FOUR YEAR OLD CHILD CARE CENTER THIS MONTH CITING OPERATING LOSSES ENROLLMENT AT THE CENTER LONG TROUBLED BY FINANCIAL WOES HAD FALLEN SHARPLY A COMPANY SPOKESMAN SAYS LAST YEAR APPLE COMPUTER OF CUPERTINO CALIFORNIA REDUCED FUNDING TO ITS CHILD CARE CENTER REQUIRING THE CENTER TO RAISE EMPLOYEES' TUITION BY TWENTY PERCENT AND INCREASE ENROLLMENT THE COMPUTER MAKER SAYS IT IS MAINTAINING ITS COMMITMENT TO WORK FAMILY PROGRAMS GENERALLY PACIFIC GAS AND ELECTRIC LAID OFF ITS FAMILY CARE COORDINATOR DURING A DOWNSIZING A SPOKESMAN SAYS THE SAN FRANCISCO UTILITY IS CONTINUING ALL ITS WORK FAMILY OFFERINGS INCLUDING A CHILD CARE CENTER AND JOB SHARING ADOPTION REIMBURSEMENT FLEXIBLE SCHEDULING AND DEPENDENT CARE REFERRAL PROGRAMS WELLS FARGO A SAN FRANCISCO BANKING CONCERN ALSO LAID OFF A PART TIME WORK FAMILY COORDINATOR A SPOKESWOMAN SAYS IT IS EXPANDING WORK FAMILY PROGRAMS UNDER A REORGANIZED EMPLOYEE HEALTH AND WELLNESS UNIT SEVEN THOUSAND CALLERS SWAMP WORK SLASH FAMILY DIRECTIONS BOSTON WITH REQUESTS FOR ITS HOME SAFETY KIT FOR ELDERS DESIGNED FOR WORKING PEOPLE WORRIED ABOUT AGING RELATIVES THE KIT INCLUDES NIGHTLIGHTS ADHESIVE GRIPS FOR THROW RUGS AND OTHER DEVICES TO PREVENT HOME ACCIDENTS LIVE VIA BABY LINK FROM SUBURBAN NEW JERSEY IS RADIO NEWSCASTER LIZ WHITE'S SIGN OFF FOR WMXV F. M. IN MANHATTAN TO THE SOUND OF A BABY GURGLING IN THE BACKGROUND SINCE SHORTLY AFTER GIVING BIRTH TO HER DAUGHTER IN OCTOBER MS. WHITE HAS BEEN BROADCASTING DAILY FROM HER LAUNDRY ROOM IN NORTHERN NEW JERSEY USING EQUIPMENT INSTALLED BY HER EMPLOYER NOT ONLY IS MS. WHITE HAPPY BUT WMXV'S HEAVILY FEMALE AUDIENCE OF BABY BOOMERS CAN ALL RELATE TO HER ROLE JUGGLING SAYS ROBERT DUNPHY WMXV'S VICE PRESIDENT PROGRAMMING ANY DRAWBACKS THE BASSET HOUND IS A NUISANCE A PRODUCER SAYS IF SOMEONE COMES TO HER DOOR ALL OF NEW YORK KNOWS IT SHOULDN'T THAT MAKE ME FEEL BETTER ON MY INNER CHILD KOFI AMOAH LOVES TO CONVERSE ON THE SUBJECT BUT HE UNDERSTANDS THE LAW OF THE DIGITAL JUNGLE HE DEFERS A QUESTION TO A FRIEND ACROSS THE TABLE IN A NEW YORK BAR WHERE THEY ARE UNWINDING QUOTE TALK TO HIM QUOTE HE SAYS HE'S GOT A BIGGER HARD DRIVE A SEAT AWAY TERRY DONOFRIO AND HIS PAL RICH DELIO ARE EXPLORING THE SAME TERRAIN THEY COMPARE MEASUREMENTS YOU'VE ONE UPPED ME SAYS MR. DELIO CONCLUDING THAT MR. DONOFRIO'S TWENTY INCH MONSTER A COMPUTER MONITOR IS BIGGER THAN HIS IF COMPUTER MASTERY HAS PROVED GENDERLESS COMPUTER TALK IS LARGELY GUY TALK HAVING IN SOME QUARTERS SUPPLANTED CARS SPORTS AND SEX AS THE SUBJECT OF CHOICE AROUND THE WATER COOLER AND AT THE BAR THE LINGO IS OVERTLY MASCULINE AND SOMETIMES OUTRIGHT MACHO IT'S A DISCOURSE SURGING WITH BOASTS AND BRAVADO THE MORE MEGABYTES THE MORE RAM THE BIGGER THE HARD DRIVE THE MORE SPEED THE MORE A P. C. COSTS THE BETTER INDEED MALE ESTEEM USED TO BE TIED UP IN CARS AND SEXUAL PROWESS MUSES FRED HOAR PRESIDENT OF A COMPUTER CONSULTING CONCERN IN CALIFORNIA'S SILICON VALLEY BUT THESE DAYS AMONG A BURGEONING CLASS OF MALE TECHNO LITERATES MANY MALE EGOS ARE STOKED BY THE POWER AND VALUE OF YOUR TECHNICAL EQUIPMENT AND A FLUENCY IN TECHNO RAP HE SAYS MR. HOAR EXPLAINS IF A GUY CAN TALK BITS BYTES FEEDS AND SPEEDS YOU KNOW RIGHT AWAY THIS GUY IS A GEEK BUT BEING A GEEK A WORD IN COMPUTER PARLANCE SYNONYMOUS WITH NERD ISN'T BAD IT'S GOOD QUOTE RUGGED GEEKISM IS THE PATH TO THE INFORMATION SUPERHIGHWAY QUOTE SAYS MR. HOAR BILL GATES THE BILLIONAIRE CHAIRMAN OF MICROSOFT CORPORATION IS A GEEK GEEKS NERDS THEY'RE IN THE NERDS ARE ALL RICH AND THEY ARE A KIND OF NEW ARISTOCRACY SAYS MARK MACGILLIVRAY A SUNNYVALE CALIFORNIA MANAGEMENT CONSULTANT COMPUTERS ARE THE NEW LINGUA FRANCA FOR WOULD BE STUDS THERE ARE WOMEN NERDS OF COURSE LOTS OF THEM BUT WOMEN SEEM LESS COMPELLED TO TALK ABOUT THEIR COMPUTER CONQUESTS OR TO BRAG ABOUT BEING THE FIRST TO GET THEIR HANDS ON A TRIPLE CLOCKED INTEL PROCESSOR IT'S A MALE BONDING THING SAYS ELAINE SANTAGELO A MANAGER FOR THE BOSTON COMPUTER SOCIETY NOTING THAT SHE CAN'T GO TO A COCKTAIL PARTY THESE DAYS WITHOUT ENCOUNTERING MEGACLUSTERS OF MEN FEVERISHLY COMPARING HARD DRIVES AND MODEM SPEEDS CELESTE LESTER A RYE N. Y. P. C. OWNER AND CONSULTANT AGREES SHE SAYS THE MEN IN HER OFFICE ARE CONSTANTLY PRATTLING ON ABOUT ARCANE COMPUTER HARDWARE THE HOTTEST LOCAL BUS VIDEO OR HOW MANY EXPANSION SLOTS A TRULY HOT COMPUTER OUGHT TO HAVE MS. LESTER MERELY WANTS HER COMPUTER TO WORK EFFICIENTLY WHO CARES HOW POWERFUL YOUR HARDWARE IS SHE SAYS MEN NOT ONLY CARE DEEPLY ABOUT THEIR HARDWARE THEY ALSO VIEW THE COMPUTER AS SOMETHING TO CONQUER QUOTE THEY WANT TO WHIP THE THING IN LINE AND SHOW IT WHO'S BOSS I DON'T THINK WOMEN GET OFF ON TAMING COMPUTERS SAYS DEBORAH TANNEN AUTHOR OF THE BOOK YOU JUST DON'T UNDERSTAND WOMEN AND MEN IN CONVERSATION THERE ARE OTHER FACTORS AS WELL MANY MEN ARE FINDING IT INCREASINGLY DIFFICULT AND RISKY TO TALK ABOUT WOMEN AND SEX AT LEAST IN THE OFFICE PROFESSIONAL SPORTS WITH PERHAPS THE EXCEPTION OF BASKETBALL SEEM TO BE LOSING THEIR ALLURE CAR MANIA EBBS AND FLOWS BUT BRAGGING ABOUT PORSCHES AND B. M. W.S WENT OUT WITH THE DECADE OF GREED FILLING THIS GAP COMPUTERS WHICH IF CUSTOMIZED WITH A BIG ENOUGH HARD DRIVE A FAST ENOUGH PROCESSOR AND A GIGANTIC SURPLUS OF RAM CAN BE TURNED INTO DIGITAL HOT RODS THAT DON'T BURN GAS OR TAKE UP SPACE IN THE GARAGE PUT ANOTHER WAY COMPUTERS ARE TOYS AND WHEN MEN TALK COMPUTERS THEY SOMETIMES TURN INTO LITTLE BOYS AGAIN SAYS LARRY BUBEL A PUBLIC TRANSIT WORKER AND COMPUTER OWNER THAT COMPUTERSPEAK IS SUCH A MASCULINE LANGUAGE RIFE WITH SEXUAL IMAGERY RAM CRAM HOT KEY STACKED DISK AMONG OTHERS ISN'T SURPRISING GIVEN THE OVERWHELMINGLY MALE CONTINGENT AMONG THE ENGINEERS PROGRAMMERS AND ENTREPRENEURS WHO FOUNDED THE COMPUTER INDUSTRY STEVEN MULAIK VICE PRESIDENT FOR A DRUGSTORE CHAIN RECALLS A DECADE AGO WORKING WITH NERDS ON A COMPUTER HELP DESK AT GEORGIA TECH UNIVERSITY BACK THEN NERDS WERE STILL CONSIDERED SOCIALLY INEPT TECHNO BABBLERS AND HIS CO WORKERS CONFORMED TO THAT IMAGE BEING GUYS WHO HAD NO LIFE BEYOND STAYING UP ALL NIGHT TALKING TECH HE SAYS TO COMPENSATE THESE SEXUALLY REPRESSED TECHNO NERDS INVENTED MANLY SOUNDING TERMS LIKE MEGABYTE ROUGHLY A MILLION BYTES OR BITS OF DIGITAL INFORMATION THAT ALLOWED THEM TO LIVE VICARIOUSLY THROUGH THEIR TECHNOLOGY MR. MULAIK ADDS THE NERD OF COURSE HAS BEEN REVENGED AND HIS LANGUAGE IS NOW STARTING TO BECOME OFFICE COLLOQUIAL HE NOTES THE LANGUAGE IS EVEN TRAVELING OUTSIDE OF TECHNOLOGY QUOTE MEGADEALS QUOTE DESCRIBE HUGE MERGERS AND ACQUISITIONS MANY OF WHICH ARE FILLED WITH QUOTE MEGAPROBLEMS QUOTE THE NEW TECHNO LITERATE MAN PAYS A HIP SMART ATTRACTIVE FEMALE A COMPLIMENT WHEN HE CALLS HER A MEGAWOMAN IT'S QUESTIONABLE HOWEVER WHETHER THE EVOLUTION OF TECHNO SPEAK CAN KEEP UP WITH THE OVERPOWERING URGE AMONG MEN TO UPGRADE THEIR SYSTEMS AND THEN TALK INCESSANTLY ABOUT IT MOST COMPUTERS TODAY ARE STILL USED FOR RATHER MUNDANE PURPOSES LIKE WORD PROCESSING ACCOUNTING GAMES AND CONNECTING TO ON LINE SERVICES VIRTUALLY ALL OF THOSE CAN BE ACCOMPLISHED WITH TODAY'S BARE BONES FOUR HUNDRED EIGHTY SIX GENERATION COMPUTERS AND EVEN THE BARE BONE THREE EIGHTY SIX MODELS OF A COUPLE OF YEARS AGO TELL THAT TO MR. DONOFRIO A WALDWICK N. J. CONSULTANT THOUGH HE ADMITS HE PROBABLY DOESN'T NEED IT HE SAYS HE JUST INVESTED IN A STATE OF THE ART P. C. WITH A BLINDINGLY FAST PENTIUM PROCESSOR I FIGURED WHY WAIT HE SAYS WITH A SHRUG ADDING THAT HE ALSO HAS C. D. ROM AND IS THINKING ABOUT ADDING A SOUND CARD A PERIPHERAL THAT ALLOWS A COMPUTER TO REPRODUCE DIGITAL STEREO SOUND SOME FELLOW CONSULTANTS IN THE BAR CAN'T MATCH MR. DONOFRIO'S HARDWARE BUT THEY ARE HAPPY TO CAST ASPERSIONS ON THOSE STILL STUCK IN A THREE EIGHTY SIX OR GOD FORBID TWO EIGHTY SIX RUT I MEAN THOSE ARE ANTIQUES NOW SCOFFS CHUCK HILL A CONSULTANT FROM SARASOTA FLORIDA AND OF COURSE UNLESS YOUR PROCESSOR IS THE NEWEST FASTEST AND MOST SOPHISTICATED YOU GET NO RESPECT HE ADDS IN FACT IN THE VALLEY TRUE POWER USERS ALSO KNOWN AS HEAT SEEKERS CONSIDER IT LAME TO INVEST MERELY IN AN OFF THE SHELF STATE OF THE ART COMPUTER QUOTE YOU BUY A HIGH END MACHINE AND THEN UPGRADE THE HELL OUT OF IT QUOTE NOTES MR. MACGILLIVRAY MR. HOAR IS ALL TOO WELL AWARE OF THIS THOUGH HE SPEAKS BITS BYTES FEEDS AND SPEEDS HE CONFESSES THAT THE APPLE ON HIS DESK IS A BIT OUTMODED AND THAT HARDLY A DAY GOES BY WITHOUT A MALE COLLEAGUE COMING BY AND TWEAKING HIM FOR NOT UPGRADING HIS SYSTEM WELL HOW BIG IS YOUR HARD DRIVE A QUESTIONER WANTS TO KNOW MR. HOAR A BIT EMBARRASSED PERHAPS ISN'T SAYING WHILE GERMAN AUTOMOBILE OUTPUT IS EXPECTED TO STABILIZE THIS YEAR FOLLOWING LAST YEAR'S BRUTAL PLUNGE BAYERISCHE MOTOREN WERKE A. G. IN FRANKFURT FORECASTS ITS BUSINESS WILL REBOUND IN NINETEEN NINETY FOUR SEPARATELY YESTERDAY GERMANY'S MAIN AUTOMOBILE INDUSTRY TRADE GROUP MADE A PLEA FOR RELIEF FROM HIGH WAGE COSTS JUST AS THE INDUSTRY'S UNION PREPARED TOKEN QUOTE WARNING QUOTE STRIKES NEXT WEEK TO PRESSURE EMPLOYERS FOR HIGHER PAY GERMAN AUTO WORKERS ARE ALREADY THE HIGHEST PAID IN THE WORLD THE VDA GERMAN AUTOMOBILE INDUSTRY ASSOCIATION ASSERTED IN A PRELIMINARY REPORT ON ITS NINETEEN NINETY THREE BUSINESS B. M. W. REPEATED ITS CLAIM THAT IT FARED BETTER THAN ITS GERMAN COMPETITION LAST YEAR WHILE RIVAL CAR MAKERS MERCEDES BENZ A. G. AND VOLKSWAGEN A. G. EXPECT LOSSES FOR NINETEEN NINETY THREE B. M. W. DECLARED IT HAD A DEFINITE PROFIT THE COMPANY'S NINETEEN NINETY THREE EARNINGS WOULD BE LOWER THAN NINETEEN NINETY TWO LEVELS IT ADDED BUT DIDN'T GIVE ANY FIGURES BANKRUPTCY FILINGS AREN'T USUALLY A MAGNET FOR INVESTORS BUT THEN AGAIN MERRY GO ROUND ENTERPRISES ISN'T YOUR AVERAGE BANKRUPTCY COURT WARD AT LEAST ONE SAVVY INVESTOR THINKS THE STOCK NOW TRADING AT THREE COULD BE TWICE THAT WITHIN A YEAR THE TOWSON MARYLAND BASED RETAILER IS THAT CURIOSITY AMONG BANKRUPTY COURT DENIZENS A SOLVENT DEBTOR WITH A NET WORTH OF NEARLY TWO HUNDRED MILLION DOLLARS AND CASH WELL ABOVE ONE HUNDRED MILLION DOLLARS LITTLE WONDER THAT THIS RARE DUCK HAS A HUNTER ON ITS TAIL DANIEL HARMETZ OF FIDELITY INVESTMENTS HAS BEEN SNAPPING UP DEBT AND STOCK OF MERRY GO ROUND SINCE THE FEDERAL BANKRUPTCY COURT FILING IN BALTIMORE JANUARY ELEVENTH MR. HARMETZ LIKES TO BUY SCADS OF DEBT AT A DISCOUNT TO BLOCK ANY REORGANIZATION PLAN HE DOESN'T LIKE THERE'S CERTAINLY ENOUGH DEBT TO GO AROUND AT MERRY GO ROUND THE RETAILER WHICH OPERATES CIGNAL BOOGIES DINER AND MERRY GO ROUND STORES OWES TWO HUNDRED SIXTY FIVE MILLION DOLLARS MUCH OF IT TAKEN ON LAST SUMMER WHEN IT ACQUIRED CHESS KING FROM MELVILLE CORPORATION AT THAT TIME MERE MONTHS BEFORE THE BANKRUPTCY COURT FILING MERRY GO ROUND BORROWED ABOUT SIXTY FIVE MILLION DOLLARS THROUGH A PRIVATE PLACEMENT WITH INSURERS AND ABOUT FORTY TWO MILLION DOLLARS MORE FROM FOUR BANKS BUT THIS TIME MR. HARMETZ IS PLAYING A SLIGHTLY DIFFERENT GAME HE IS NOT ONLY BUYING DEBT BUT STOCK AS WELL CONVINCED THAT A QUICK RESOLUTION TO THE BANKRUPTCY LAW FILING WILL BUOY MERRY GO ROUND'S SHARE PRICE IN THE PAST TWO WEEKS HE HAS BOUGHT SLIGHTLY MORE THAN FIVE MILLION SHARES ABOUT TEN PERCENT OF THE COMPANY'S FIFTY THREE POINT NINE MILLION SHARES OUTSTANDING THAT PUTS FIDELITY TOE TO TOE WITH MERRY GO ROUND CHAIRMAN LEONARD WEINGLASS WHO ALSO OWNS ABOUT TEN PERCENT BUT MR. HARMETZ'S BARGAINING POWER COMES FROM FIDELITY'S HUGE STAKE IN MERRY GO ROUND'S UNSECURED DEBT SO FAR THE MUTUAL FUND GIANT HAS SWALLOWED AROUND NINETY MILLION DOLLAR FACE AMOUNT ACCORDING TO BANK DEBT BROKERS INDEED SAY BROKERS MR. HARMETZ HAS BEEN SUCH AN AGGRESSIVE BUYER THAT HE PUSHED THE PRICE OF THE DEBT UP TO ABOUT EIGHTY EIGHT CENTS ON THE DOLLAR FROM A LOW OF ABOUT EIGHTY CENTS QUOTE IT'S BEEN A FEEDING FRENZY QUOTE SAYS T. K. DUGGAN A FOUNDER OF DELAWARE BAY COMPANY WHICH SPECIALIZES IN DISTRESSED SECURITIES MR. HARMETZ DODGED CALLS REQUESTING COMMENT AMONG THE RECENT RUEFUL SELLERS OF DEBT IS PRINCIPAL MUTUAL INSURANCE WHICH LENT MERRY GO ROUND THIRTY EIGHT POINT TWO MILLION DOLLARS LAST AUGUST AND NEVER RECEIVED A SINGLE INTEREST PAYMENT WE FELT THAT WAS THE BEST RESOLUTION TO A TROUBLED SITUATION SAYS A REPRESENTATIVE OF THE DES MOINES IOWA INSURER THE OTHER PRIVATE PLACEMENT LENDERS MASSACHUSETTS MUTUAL LIFE INSURANCE AND AID ASSOCIATION FOR LUTHERANS ARE HANGING IN FOR THE TIME BEING IN MID DECEMBER THE FOUR BANKS SIGNET BANKING C. S. HOLDING'S CREDIT SUISSE BOATMEN'S BANCSHARES AND NATIONAL WESTMINSTER TIGHTENED TERMS FOR FUTURE BORROWINGS BY THE COMPANY BUT WITHIN ONE MONTH THE COMPANY ENTERED CHAPTER ELEVEN BANKRUPTCY PROCEEDINGS AND THE BANKS BAILED OUT SELLING THEIR DEBT HOLDINGS MR. HARMETZ WON'T GIVE UP SO EASILY MR. WEINGLASS SAYS THE FUND MANAGER TOLD HIM IN A TELEPHONE CONVERSATION THIS WEEK THAT HE HAD A LOT OF CONFIDENCE IN MANAGEMENT BUT MR. HARMETZ ISN'T ALWAYS SO FRIENDLY AS CO MANAGER OF FIDELITY'S CAPITAL AND INCOME FUND HE AGITATED FOR A TAKEOVER OF R. H. MACY AND COMPANY IN AN EFFORT TO END THAT LENGTHY PROCEEDING MR. HARMETZ NOW RUNS SEVERAL FIDELITY FUNDS THAT ARE CLOSED TO SMALL INVESTORS BUT HIS APPETITE FOR MERRY GO ROUND SECURITIES IS SO GREAT THAT HE HAS SPRINKLED THEM INTO SEVERAL MUTUAL FUNDS AS WELL THE UPSIDE LOOKS PRETTY GOOD IF THE RETAILER NUDGES UP CASH FLOW AND GETS MERCHANDISE IN THE STORES THAT CUSTOMERS WANT FIDELITY MIGHT SEE THE STOCK DOUBLE SOME INVESTORS FEEL THE BANKS WERE SELF DEFEATINGLY RIGID UNDERMINING THE RETAILER IN THE MIDST OF THE CRUCIAL HOLIDAYS JUST BECAUSE ITS FASHIONS FLOPPED ONE SEASON BUT MERRY GO ROUND ISN'T RISK FREE TO EITHER MR. HARMETZ OR ANY CO SPECULATORS MR. HARMETZ PAID SO MUCH FOR HIS DEBT EIGHTY SIX CENTS ON THE DOLLAR ACCORDING TO ONE TRADER THAT THERE ISN'T MUCH UPSIDE LEFT IF IT TAKES LONGER THAN A YEAR FOR MERRY GO ROUND TO WORK OUT ITS KINKS MR. HARMETZ MIGHT REAP SIXTEEN PERCENT OR SO ON THE INVESTMENT NOT THE HEADY TWENTY FIVE PERCENT CAPITAL AND INCOME POSTED LAST YEAR THE DEBT ACQUIRED FROM PRINCIPAL YIELDS SEVEN PERCENT NOT MUCH OF A KICK EVEN IF MR. HARMETZ CAN WREST POST PETITION INTEREST FROM THE COMPANY THAT SITUATION LEADS SOME BANKRUPTCY PLAYERS TO SPECULATE THAT IF A QUICK TURNAROUND DOESN'T WORK MR. HARMETZ'S PLAN B. IS TO WREST MORE EQUITY FROM THE COMPANY BY VOTING HIS DEBT STAKE TO BLOCK A REORGANIZATION PLAN IF THAT HAPPENED IT COULD DEFLATE THE STOCK ABORTION RIGHTS ADVOCATES WON A BIG VICTORY IN THE SUPREME COURT THIS WEEK BUT THEIR LEGAL BATTLES AREN'T OVER THE HIGH COURT RULED THAT LAWYERS REPRESENTING ABORTION CLINICS CAN USE THE FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW KNOWN AS RICO AGAINST ABORTION FOES THE DECISION SAYS KATE MICHELMAN PRESIDENT OF THE NATIONAL ABORTION AND REPRODUCTIVE RIGHTS ACTION LEAGUE PROVIDES A POWERFUL WEAPON TO OPPOSE THE QUOTE CAMPAIGN OF VIOLENCE AND TERROR QUOTE AGAINST ABORTION CLINICS BUT PROVING A NATIONAL CONSPIRACY BY OPERATION RESCUE AND ITS ALLIES WILL BE DIFFICULT AMONG THE HURDLES IS THE FIRST AMENDMENT A POTENTIAL SHIELD FOR ANTI ABORTION ACTIVISTS WHO MAY HAVE BEHAVED ILLEGALLY BUT NOT VIOLENTLY CIVIL DISOBEDIENCE COULD BE DEFENDED AS THE SORT OF DISSENT THAT IS AT THE HEART OF THE CONSTITUTIONAL RIGHT TO FREE SPEECH AND EVEN IF SUITS FILED UNDER THE RACKETEERING LAW PREVAIL IT MAY BE DIFFICULT TO COLLECT DAMAGES FROM THE LARGE BUT LOOSE KNIT ANTI ABORTION MOVEMENT ENACTED IN NINETEEN SEVENTY RICO IS QUITE BROADLY WORDED AND IN THE NINETEEN EIGHTIES CIVIL RICO SUITS PROLIFERATED THE SUPREME COURT HAS REPEATEDLY REFUSED TO NARROW THE STATUTE'S APPLICATION SAYING THAT'S CONGRESS'S JOB ABORTION RIGHTS LAWYERS BEGAN USING RICO IN THE NINETEEN EIGHTIES AS A RESPONSE TO WHAT APPEARED TO BE COORDINATED EFFORTS TO FORCE ABORTION CLINICS OUT OF BUSINESS ONLY ONE SUCH SUIT SUCCEEDED A DECISION AFFIRMED IN NINETEEN EIGHTY NINE BY A FEDERAL APPEALS COURT IN THAT CASE A PHILADELPHIA CLINIC WAS AWARDED FORTY FIVE THOUSAND DOLLARS FOR VIOLATIONS OF RICO AND OTHER LAWS AFTER PROTESTERS ASSOCIATED WITH THE PRO LIFE COALITION OF SOUTHEASTERN PENNSYLVANIA REPEATEDLY INVADED THE FACILITY KNOCKING DOWN EMPLOYEES AND DAMAGING EQUIPMENT ANTI ABORTION ACTIVISTS SAY THE SUPREME COURT'S RICO DECISION WON'T DETER THEM THE MOVEMENT'S LAWYERS PREDICT MORE LITIGATION WE EXPECT A COSTLY ABUSE OF RICO IN THE COURTS THROUGHOUT THE COUNTRY THAT WILL THREATEN ALL ACTIVISTS THAT OPPOSE VARIOUS BUSINESSES SAYS CLARKE FORSYTHE GENERAL COUNSEL FOR AMERICANS UNITED FOR LIFE A LEGAL ARM OF THE ANTI ABORTION MOVEMENT THE BATTLE AGAINST THE NATIONAL ORGANIZATION FOR WOMEN IN CHICAGO WHICH LED TO MONDAY'S RULING HAS COST THE ANTI ABORTION MOVEMENT CLOSE TO ONE MILLION DOLLARS MR. FORSYTHE SAYS NOW IS ACCUSING ANTI ABORTION GROUPS OF CONDUCTING A VIOLENT NATIONWIDE CONSPIRACY TO FORCE ABORTION CLINICS TO CLOSE IN ITS UNANIMOUS RULING ISSUED SEVEN WEEKS AFTER ORAL ARGUMENTS A STRIKINGLY SHORT PERIOD THAT INCLUDED THE YEAR END HOLIDAYS THE HIGH COURT STRESSED THAT IT HADN'T CONSIDERED THE MERITS OF NOW'S ALLEGATIONS INSTEAD THE COURT SIMPLY SAID NOW AND ITS ALLIES MAY USE RICO AS A BASIS FOR LAWSUITS RICO'S CIVIL COMPONENTS ARE HIGHLY POTENT BECAUSE THEY ALLOW PLAINTIFFS TO GO AFTER AN ORGANIZATION'S LEADERS EVEN IF THEY WEREN'T AT THE SCENE OF THE ALLEGED MISDEEDS AND IT PERMITS DAMAGES FROM PURPORTED HARM TO BE TRIPLED OUR GOAL IS EXCLUSIVELY TO GO AFTER THE HIGH LEVEL PEOPLE IN OPERATION RESCUE AND THE OTHER MILITANT ANTI ABORTION GROUPS NOT THE FOOT SOLDIERS SAYS FAY CLAYTON NOW'S LEAD LAWYER IN THE TRIAL THAT WILL NOW GO FORWARD IN CHICAGO THE SUPREME COURT'S RULING WAS A PROCEDURAL ONE IT SAID THAT TO USE THE RICO STATUTE PLAINTIFFS SUCH AS NOW DON'T HAVE TO PROVE THAT DEFENDANTS HAD AN ECONOMIC MOTIVE NOW WILL HAVE TO SHOW THAT ANTI ABORTION ACTIVISTS OPERATED AN INTERSTATE ENTERPRISE BY MEANS OF A PATTERN OF RACKETEERING ACTIVITY THAT MEANS AN ORGANIZATION WHOSE MEMBERS OR AFFILIATES HAVE COMMITTED TWO OR MORE CRIMES FROM A LIST THAT IN THIS CASE INCLUDES PHYSICAL ASSAULTS EXTORTION ARSON AND BOMBING WE WILL NOW GO BACK TO THE U. S. DISTRICT COURT IN CHICAGO AND PROVE THAT THE PRO LIFE DEMONSTRATORS DIDN'T ENGAGE IN ANY VIOLATIONS OF THE STATUTE SAYS JAY SEKULOW WHO HELPED REPRESENT ANTI ABORTION GROUPS BEFORE THE HIGH COURT SHOWING A QUOTE PATTERN QUOTE ISN'T DIFFICULT IN MANY CASES IF THERE ARE MULTIPLE VIOLENT ACTS AND INTIMIDATION SAYS MS. CLAYTON BUT THE ENTERPRISE IS HARD TO PROVE BECAUSE MILITANT ANTI ABORTION GROUPS TEND TO BE LOOSELY ORGANIZED BECAUSE OF THAT MOST CLINICS WON'T BE ABLE TO USE RICO SHE ADDS THERE ARE ABOUT A DOZEN PENDING RICO SUITS AGAINST ABORTION FOES THE DECISION ALSO COULD ENCOURAGE RICO SUITS AGAINST OTHER TYPES OF PROTEST THAT INVOLVE LAW BREAKING ATTACKS ON MEDICAL LABORATORIES BY ANIMAL RIGHTS GROUPS OR MILITANT DEMONSTRATIONS BY GAY RIGHTS ORGANIZATIONS THAT LEAD TO VIOLENCE IN ATTEMPTING TO PROVE A PATTERN OF RACKETEERING NOW HAS RELIED HEAVILY ON THE FEDERAL HOBBS ACT WHICH PROHIBITS EXTORTION AND THREATS OF PHYSICAL VIOLENCE THAT INTERFERE WITH A BUSINESS SUCH AS AN ABORTION CLINIC BUT IF THREATS ARE IMPLIED OR MERELY SCRAWLED ON PLACARDS THE FIRST AMENDMENT MAY BAR THEIR INCLUSION AS A BASIS FOR A RICO SUIT JUSTICE DAVID SOUTER WROTE IN A CONCURRING BRIEF THAT NOTHING IN THE COURT'S OPINION PRECLUDES A RICO DEFENDANT FROM RAISING THE FIRST AMENDMENT IN ITS DEFENSE IN A PARTICULAR CASE THE CONCURRENCE JOINED BY JUSTICE ANTHONY KENNEDY NOTES PRECEDENTS IN WHICH STATES WERE BLOCKED FROM ENFORCING LAWS BANNING SUCH THINGS AS MALICIOUS INTERFERENCE WITH BUSINESS AGAINST CIVIL RIGHTS ACTIVISTS WHO BOYCOTTED WHITE MERCHANTS ABORTION RIGHTS PROPONENTS SAY THEIR RACKETEERING SUITS FOCUS ON VIOLENT OR PERSONALLY MENACING BEHAVIOR NOT ON BOYCOTTS PRAYER PICKETING OR SIT INS BUT ENFORCING JUDGMENTS OF TRIPLE DAMAGES WON'T BE EASY ABORTION RIGHTS LAWYERS SAY THEY HAVE HAD GREAT DIFFICULTY COLLECTING COURT JUDGMENTS FOR VANDALISM OR DISOBEDIENCE OF JUDICIAL ORDERS IN SOME CASES ANTI ABORTION GROUPS AND THEIR LEADERS HAVE PLEADED INSOLVENCY OR KEPT ASSETS HIDDEN ACCORDING TO THESE LAWYERS WITH MORE MONEY AT STAKE IN A RICO SUIT THE PLAINTIFFS SAY THEY WILL DIG HARDER ANOTHER FEDERAL LAW WHICH IS LIKELY TO GET CONGRESSIONAL APPROVAL IN COMING MONTHS MAY OVERSHADOW RICO IN THE ABORTION FIGHT THE BILL WOULD MAKE IT A FEDERAL CRIME TO BLOCK WOMEN FROM ENTERING OR LEAVING ABORTION CLINICS IT ALSO WOULD CREATE A NEW BASIS FOR CIVIL SUITS ATTORNEY GENERAL JANET RENO HAS SAID FEDERAL AGENTS WOULD ENFORCE THE BILL'S CRIMINAL PROVISIONS IT'S THE COMBINATION OF LAWS AND CRIMINAL ENFORCEMENT THAT WE HOPE WILL BE A DETERRENT TO FANATICS SAYS KATHRYN KOLBERT OF THE CENTER FOR REPRODUCTIVE LAW AND POLICY THE INTERNAL REVENUE SERVICE AGREED TO PAY FIVE HUNDRED THOUSAND DOLLARS TO A MIAMI TRIAL LAWYER WHO A COURT SAID WAS WRONGFULLY IMPRISONED FOR TAX EVASION DANIEL N. HELLER SERVED FOUR MONTHS OF A THREE YEAR PRISON SENTENCE IN NINETEEN EIGHTY SEVEN BEFORE A FEDERAL APPEALS COURT RELEASED HIM AFTER FINDING THAT I. R. S. AGENTS INTIMIDATED MR. HELLER'S ACCOUNTANT INTO COMMITTING PERJURY AT TRIAL MR. HELLER SUBSEQUENTLY SUED THREE I. R. S. AGENTS THAT CASE WAS NEARING TRIAL WHEN THE I. R. S. MADE THE UNUSUAL PAYMENT OFFER THIS WEEK BECAUSE A COURT HAD RULED THAT THE AGENTS DIDN'T QUALIFY FOR GOVERNMENTAL IMMUNITY FROM DAMAGES IT WASN'T SURPRISING THAT THE I. R. S. AGREED TO PAY SUCH A LARGE SUM SAID ROBERT H. HISHON COCHAIRMAN OF AN AMERICAN BAR ASSOCIATION COMMITTEE ON TAX LAW THE I. R. S. HAD NO COMMENT ON THE AGREEMENT MR. HELLER SAID HIS WIFE WILL DONATE THE MONEY TO CHARITIES JUNDA WOO IN NEW YORK CONTRIBUTED TO THIS ARTICLE BEN CHARLSON SIXTY FOUR YEARS OLD WAS NAMED TO THE ADDITIONAL POSITION OF CHAIRMAN AT THE STONE AND WEBSTER ENGINEERING CORPORATION UNIT OF THIS ENGINEERING AND CONSTRUCTION CONCERN MR. CHARLSON FORMERLY PRESIDENT CONTINUES AS CHIEF EXECUTIVE OFFICER OF THE UNIT THE POSITION OF CHAIRMAN HAD BEEN VACANT FOR ABOUT TWO YEARS S. FUAD KOSEOGLU SIXTY FOUR SUCCEEDS MR. CHARLSON AS PRESIDENT MR. KOSEOGLU WAS MOST RECENTLY AN EXECUTIVE VICE PRESIDENT RICHARD B. KELLY FIFTY EIGHT FORMERLY SENIOR VICE PRESIDENT WAS NAMED SENIOR EXECUTIVE VICE PRESIDENT AND TWO SENIOR VICE PRESIDENTS WERE NAMED EXECUTIVE VICE PRESIDENTS CHARLES E. CROCKER JUNIOR FORTY FIVE AND ROBERT C. WIESEL FORTY THREE SOCIETY CORPORATION OF CLEVELAND AND KEYCORP ALBANY N. Y. SAID THE FEDERAL RESERVE BOARD APPROVED THE TWO COMPANIES' APPLICATION TO MERGE TO CREATE THE TENTH LARGEST U. S. BANKING ORGANIZATION SHAREHOLDERS OF BOTH BANK HOLDING COMPANIES WILL VOTE ON THE PLAN IN SEPARATE MEETINGS FEBRUARY SIXTEENTH THE TRANSACTION IS EXPECTED TO BE COMPLETED MARCH FIRST UNDER THE AGREEMENT KEYCORP SHAREHOLDERS WILL RECEIVE ONE POINT TWO OH FIVE COMMON SHARES OF THE NEW COMPANY FOR EACH OF THEIR KEYCORP SHARES SHAREHOLDERS OF SOCIETY WILL RETAIN THEIR EXISTING NUMBER OF SHARES THE MERGED COMPANY WILL BE CALLED KEY BANCSHARES INCORPORATED AND WILL BE BASED IN CLEVELAND WITH NEARLY SIXTY BILLION DOLLARS IN ASSETS AND BANKING AFFILIATES IN THIRTEEN STATES AGRICULTURE SECRETARY MIKE ESPY SAID HE PLANS TO BEGIN SOON A PILOT PROGRAM FOR MEAT INSPECTION USING MORE SCIENTIFIC QUOTE RAPID TESTING QUOTE OF CARCASSES THAT COULD REPLACE THE USUAL VISUAL INSPECTION PROCESS MR. ESPY ALSO SAID THE DEPARTMENT HAS BEGUN UNANNOUNCED VISITS TO ONE THOUSAND OF ITS SEVEN THOUSAND MEAT AND POULTRY PLANTS TO SEE WHETHER THEIR INSPECTION EFFORTS NEED IMPROVING SIMILAR SURPRISE REVIEWS WERE MADE AT NINETY MEAT PLANTS LAST SPRING AND AT TWENTY SIX TURKEY PROCESSING FACILITIES IN LATE NINETEEN NINETY THREE THE SECRETARY'S REMARKS BEFORE A FOOD SAFETY SEMINAR IN NEW YORK WERE MADE A YEAR AFTER HAMBURGER TAINTED BY THE BACTERIA E.COLI KILLED THREE CHILDREN IN WASHINGTON STATE MR. ESPY WAS RECENTLY BRIEFED BY AGRICULTURE DEPARTMENT SCIENTISTS ON THE RAPID DETECTION TEST FOR E.COLI AND OTHER FOOD BORNE PATHOGENS AS WELL AS SPRAYS THAT COULD BE USED TO REDUCE BACTERIA ON CARCASSES IN MEAT PROCESSING PLANTS AIDES SAID THE PILOT PROGRAM WILL INVOLVE SWABBING SAMPLES OF MEAT MOVING DOWN PRODUCTION LINES AND JUDGING WHETHER UNSEEN PATHOGENS ARE PRESENT A DEPARTMENT SPOKESWOMAN SAID GREATER NEW YORK SAVINGS BANK REPORTED FOURTH QUARTER NET INCOME MORE THAN DOUBLED PREDOMINANTLY DUE TO A RECOGNITION OF ONE POINT THREE MILLION DOLLARS IN TAX BENEFITS THE COMPANY REPORTED NET INCOME OF ONE POINT TWO MILLION DOLLARS OR FIVE CENTS A SHARE UP SHARPLY FROM THE YEAR EARLIER PROFIT OF FOUR HUNDRED NINETY THOUSAND DOLLARS WITHOUT THE TAX BENEFITS THE COMPANY PROBABLY WOULD HAVE REPORTED A LOSS FOR THE FULL YEAR GREATER NEW YORK RECORDED A FOURTEEN POINT SEVEN MILLION DOLLAR NET LOSS OR ONE DOLLAR AND TWENTY FIVE CENTS A SHARE COMPARED WITH NET INCOME OF THIRTEEN POINT SEVEN MILLION DOLLARS OR NINETY TWO CENTS A SHARE LARGELY BECAUSE OF A FIFTEEN MILLION DOLLAR LOAN LOSS PROVISION INCURRED IN THE THIRD QUARTER THE COMPANY TOOK A BIG PROVISION TO ACCELERATE THE SALE OF PROBLEM ASSETS HOWEVER NONPERFORMING ASSETS FELL FIFTEEN PERCENT IN THE FOURTH QUARTER TO ONE HUNDRED EIGHTY SIX MILLION DOLLARS QUOTE WE EXPECT CONTINUED PROGRESS IN THE PLANNED REDUCTION OF NONPERFORMING ASSETS IN THE COMING YEAR QUOTE SAID GERARD KEEGAN CHAIRMAN AND PRESIDENT N. K. K. CORPORATION PLANS TO EXPAND ITS MANDATORY FURLOUGH PROGRAM TO STEELWORKERS BEGINNING IN APRIL A SPOKESMAN FOR JAPAN'S SECOND LARGEST STEELMAKER SAID THE COMPANY INTENDS TO PROPOSE THE FURLOUGHS TO ITS LABOR UNION QUOTE IN THE NEAR FUTURE QUOTE HE SAID MANAGEMENT EMPLOYEES HAVE BEEN STAYING HOME ONE TO TWO WORK DAYS A MONTH SINCE N. K. K. IMPLEMENTED ITS FURLOUGH PROGRAM IN TWO PHASES IN OCTOBER AND NOVEMBER APRIL MARKS THE START OF THE FISCAL YEAR IN JAPAN NIPPON STEEL CORPORATION SUMITOMO METAL INDUSTRIES LIMITED AND OTHER MAJOR STEELMAKERS HAVE ALREADY ANNOUNCED SUCH FORCED FURLOUGHS FOR RANK AND FILE EMPLOYEES AT N. K. K. SOME TWO THOUSAND MANAGEMENT EMPLOYEES HAVE BEEN AFFECTED BY THE FURLOUGH PROGRAM THE SPOKESMAN SAID N. K. K. HAS A WORK FORCE OF TWENTY THREE THOUSAND BUT PLANS TO TRIM THAT NUMBER BY THREE THOUSAND TWO HUNDRED OVER THREE YEARS RANGER OIL LIMITED JOINED THE GROWING NUMBER OF CANADIAN ENERGY COMPANIES TAKING STEPS TO WARD OFF HOSTILE TAKEOVERS THE CALGARY ALBERTA OIL AND GAS PRODUCER SAID ITS BOARD ADOPTED A QUOTE SHAREHOLDER BID APPROVAL PLAN QUOTE INTENDED TO GIVE DIRECTORS AND SHAREHOLDERS TIME TO ASSESS OFFERS FOR COMPANY SHARES AND QUOTE WHERE APPROPRIATE QUOTE TO FEND THEM OFF RANGER ANNOUNCED THE DISTRIBUTION OF ONE RIGHT FOR EACH RANGER COMMON SHARE OUTSTANDING AT THE CLOSE OF BUSINESS YESTERDAY UNDER THE PLAN RANGER SAID THAT IF A PERSON OR GROUP ACQUIRES TWENTY PERCENT OR MORE OF RANGER'S COMMON SHARES THE RIGHTS WILL ENTITLE THE COMPANY'S OTHER SHAREHOLDERS TO PURCHASE ADDITIONAL RANGER SHARES AT A FIFTY PERCENT DISCOUNT FROM THE MARKET RANGER SAID THE PLAN IS IN EFFECT BUT REQUIRES SHAREHOLDER CONFIRMATION AT A MAY TENTH ANNUAL MEETING TWO GITANO GROUP INCORPORATED SHAREHOLDERS SUED GITANO AND WAL MART STORES INCORPORATED ALLEGING THAT THE COMPANIES HAD CONSPIRED TO MISLEAD SHAREHOLDERS ABOUT GITANO'S WEAKENED FINANCIAL CONDITION IN ORDER TO ARTIFICIALLY INFLATE THE MARKET PRICE OF GITANO SHARES CLASS ACTION STATUS IS SOUGHT FOR THE CIVIL SUIT FILED YESTERDAY IN U. S. DISTRICT COURT IN MANHATTAN EARLIER THIS WEEK GITANO DECIDED TO PUT ITSELF UP FOR SALE AFTER WAL MART ITS BIGGEST CUSTOMER SAID IT WOULD NO LONGER DO BUSINESS WITH GITANO BECAUSE THE APPAREL MAKER HAD PLEADED GUILTY IN DECEMBER TO U. S. CUSTOMS VIOLATIONS ON TUESDAY THREE OF GITANO'S OUTSIDE DIRECTORS RESIGNED AND THE NEW YORK STOCK EXCHANGE APPLIED TO THE SECURITIES AND EXCHANGE COMMISSION TO DELIST GITANO THE PLAINTIFFS PETER GERSHON AND JAY GLATZER ARE SEEKING UNSPECIFIED DAMAGES FOR THEMSELVES AND ALL HOLDERS WHO BOUGHT GITANO STOCK BETWEEN APRIL FIFTH NINETEEN NINETY THREE AND JANUARY TWENTY FOURTH NINETEEN NINETY FOUR GITANO SAID THE COMPLAINT IS QUOTE TOTALLY WITHOUT MERIT QUOTE WAL MART OFFICIALS DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT I AGREE THAT AMERICA HAS ENTERED A THIRD INDUSTRIAL REVOLUTION AS MICHAEL C. JENSEN STATES IN HIS JANUARY THIRD ARTICLE QUOTE A REVOLUTION ONLY MARKETS COULD LOVE QUOTE IN FACT WE AGREE SO MUCH WITH THE PREMISE OF THE ARTICLE THAT WE DIVESTED OURSELVES OF GENERAL TIRE SEVEN YEARS AGO UNFORTUNATELY MR. JENSEN SUGGESTS GENCORP IS STILL IN THE TIRE BUSINESS AND IS STILL INVESTING IN WHAT HE CORRECTLY IDENTIFIED AS A SHRINKING MARKET WE ARE NOT TO MR. JENSEN'S MAIN POINT THAT THE RESTRUCTURINGS BEGINNING IN THE NINETEEN EIGHTIES AND CONTINUING TO THIS DAY HAVE RESULTED IN STRONGER MORE AGILE COMPANIES WE AGAIN AGREE WHOLEHEARTEDLY WE LAUNCHED A RESTRUCTURING PROGRAM IN NINETEEN EIGHTY SEVEN THAT FOCUSED GENCORP ON THREE STRATEGIC BUSINESSES AUTOMOTIVE AEROSPACE AND POLYMER PRODUCTS AND SHED OTHER ASSETS INCLUDING TIRES ALONG THE WAY WE BELIEVED AT THE TIME THAT THESE BUSINESSES WERE THE RIGHT ONES FOR GENCORP GIVEN OUR TECHNOLOGICAL CAPABILITIES AND THE GROWTH POTENTIAL OF OUR MAJOR MARKETS AND WHILE THE RESTRUCTURING EFFORTS CONTINUE I CAN REPORT THAT WE ARE REALIZING THOSE GAINS THAT MR. JENSEN SUGGESTS SINCE NINETEEN EIGHTY SEVEN WE HAVE INCREASED PRODUCTIVITY REDUCED OPERATING COSTS IN OUR CORE BUSINESSES AND MOVED TOWARD A MORE CUSTOMER DRIVEN ORGANIZATION RESEARCH AND DEVELOPMENT SPENDING BY GENCORP TWO HUNDRED TWELVE MILLION DOLLARS SPENT SINCE NINETEEN EIGHTY SEVEN HAS CONCENTRATED ON CORE PROCESSES AND TECHNOLOGIES THAT WILL MAINTAIN OUR COMPETITIVE EDGE AROUND THE WORLD THE CONGRESSIONAL BUDGET OFFICE SHARPLY SCALED BACK ITS ESTIMATE OF THE FEDERAL BUDGET DEFICIT PUTTING IT EVEN SMALLER THAN THE WHITE HOUSE HAS PROJECTED IN RECENT DAYS IN TESTIMONY BEFORE THE SENATE BUDGET COMMITTEE C. B. O. DIRECTOR ROBERT REISCHAUER SAID THE DEFICIT WILL SHRINK FROM TWO HUNDRED TWENTY THREE BILLION DOLLARS IN THE CURRENT FISCAL YEAR TO ONE HUNDRED SEVENTY ONE BILLION DOLLARS IN NINETEEN NINETY FIVE AND EVEN NARROWER IN NINETEEN NINETY SIX AS PRESIDENT CLINTON FACES RE ELECTION MR. CLINTON SAID THIS WEEK THAT HIS BUDGET WILL PROJECT A NINETEEN NINETY FIVE DEFICIT BELOW ONE HUNDRED EIGHTY BILLION DOLLARS THE DEFICIT IN THE YEAR ENDED SEPTEMBER THIRTIETH WAS TWO HUNDRED FIFTY FIVE BILLION DOLLARS THE NEW ESTIMATES ARE SLIGHTLY SMALLER THAN THOSE MADE AFTER THE PASSAGE OF THE DEFICIT REDUCTION BILL LAST YEAR BACK THEN FOR INSTANCE THE C. B. O. PROJECTED THE NINETEEN NINETY FIVE DEFICIT WOULD BE ONE HUNDRED NINETY SIX BILLION DOLLARS MR. REISCHAUER ASCRIBED THE BRIGHTENED OUTLOOK TO AN IMPROVING ECONOMY LOWER THAN EXPECTED GROWTH IN MEDICARE AND MEDICAID SPENDING AND OTHER RE ESTIMATES FOR SPENDING ON SUCH THINGS AS FEDERAL DEPOSIT INSURANCE THE DEFICIT REDUCTION PROGRAM ESTIMATED AT FOUR HUNDRED THIRTY THREE BILLION DOLLARS OVER FIVE YEARS BY THE C. B. O. AND ABOUT FIVE HUNDRED BILLION DOLLARS BY THE WHITE HOUSE AND CONGRESSIONAL DEMOCRATS QUOTE SEEMS LIKELY TO ACHIEVE THE DESIRED OUTCOME QUOTE MR. REISCHAUER TESTIFIED BUT THE C. B. O. ALSO WARNED THAT THE DEFICIT WILL BEGIN GROWING AGAIN AFTER NINETEEN NINETY SIX UNLESS ACTION IS TAKEN TO RESTRAIN HEALTH CARE SPENDING AMONG OTHER THINGS BY THE YEAR TWO THOUSAND FOUR THE C. B. O. ESTIMATED THE DEFICIT WILL BE THREE HUNDRED SIXTY FIVE BILLION DOLLARS MEASURED AGAINST THE SIZE OF THE ECONOMY THAT'S ROUGHLY THE SAME AS IT WILL BE THIS YEAR THE GOOD NEWS CHEERED DEMOCRATS SUCH AS SENATOR KENT CONRAD D. N. D. WHO DECLARED WE DID THE RIGHT THING LAST YEAR AND THE CLINTON ADMINISTRATION CELEBRATED TOO WE'VE BEEN TELLING PEOPLE ALL ALONG THAT WE'RE GETTING THE DEFICIT DOWN AND GETTING IT DOWN FASTER THAN WE THOUGHT POSSIBLE AND NOW THERE'S INDEPENDENT CONFIRMATION OF THAT TREASURY SECRETARY LLOYD BENTSEN TOLD REPORTERS AT A WHITE HOUSE BRIEFING HELD WHILE MR. REISCHAUER WAS STILL TESTIFYING REDUCING THE DEFICIT BUDGET DIRECTOR LEON PANETTA ADDED DIDN'T TAKE ANY GIMMICKS IT DIDN'T TAKE A CONSTITUTIONAL AMENDMENT IT TOOK LEADERSHIP CITING THE C. B. O.'S PROJECTIONS THAT THE DEFICIT WILL BEGIN RISING AGAIN AT THE END OF THE DECADE BOTH OFFICIALS UNDERSCORED THE NEED FOR HEALTH CARE REFORM THIS YEAR TO SLOW THE GROWTH IN FUTURE MEDICARE AND MEDICAID SPENDING REPUBLICANS MEANWHILE COMPLAINED THAT MOST OF THE INITIAL DEFICIT REDUCTION RESULTED FROM THE TAX INCREASES IN THE DEMOCRATIC PASSED PACKAGES NOT SPENDING CUTS AND THEY WARNED THAT THE ADMINISTRATION'S PENDING HEALTH CARE PACKAGE WOULD SOON WORSEN THE DEFICIT OUTLOOK MR. REISCHAUER HIMSELF UNDERSCORED THE POINT AT LEAST FOR THE SHORT TERM ADOPTING A PLAN THAT SUBSTANTIALLY REFORMS THE NATION'S HEALTH CARE SYSTEM MIGHT SLOW THE FUTURE GROWTH OF SUCH SPENDING MR. REISCHAUER SAID BUT THAT POSITIVE EFFECT ON THE DEFICIT COULD BE LARGELY OFFSET AT LEAST IN THE SHORT TO INTERMEDIATE TERM BY THE COSTS OF EXTENDING HEALTH CARE COVERAGE TO PEOPLE WHO ARE CURRENTLY UNINSURED IN RESPONSE TO A QUESTION MR. BENTSEN ACKNOWLEDGED THE NEED FOR ADDITIONAL DEFICIT REDUCTION MEASURES IN THE FUTURE IMO INDUSTRIES INCORPORATED LAWRENCEVILLE N. J. SAID IT RECORDED A ONE HUNDRED SIXTY EIGHT MILLION DOLLAR ANTICIPATED LOSS ON DISPOSAL OF ITS ELECTRO OPTICAL SYSTEMS INCORPORATED BUSINESS AND PLANS WORKFORCE CUTS BY MID NINETEEN NINETY FOUR THE DISPOSAL DECISION RESULTED IN A FOURTH QUARTER LOSS OF TWO HUNDRED FORTY FIVE POINT SIX MILLION DOLLARS OR FOURTEEN DOLLARS AND FIFTY TWO CENTS A SHARE COMPARED WITH NET INCOME OF THREE HUNDRED THIRTY THREE THOUSAND DOLLARS OR TWO CENTS A SHARE ONE YEAR AGO REVENUE DECLINED TWENTY FOUR PERCENT TO ONE HUNDRED FIFTY THREE POINT ONE MILLION DOLLARS FROM TWO HUNDRED ONE POINT NINE MILLION DOLLARS THE COMPANY WHICH MAKES ANALYTICAL AND OPTICAL INSTRUMENTS ELECTRONIC AND MECHANICAL CONTROLS AND ENGINEERED POWER PRODUCTS TOOK A NINE MILLION DOLLAR CHARGE TO ACCOUNT FOR A PLAN THAT WILL ELIMINATE SEVEN HUNDRED JOBS OR ELEVEN PERCENT OF ITS WORK FORCE THE COMPANY ADDED THAT IT WOULD SEEK A WAIVER FROM THE HOLDERS OF SOME OF ITS DEBT IN ORDER TO BORROW AN ADDITIONAL THIRTY FIVE MILLION DOLLARS FOR WORKING CAPITAL AND LETTERS OF CREDIT IMO WHICH ANNOUNCED ITS RESULTS AFTER THE MARKET CLOSED FINISHED DOWN TWELVE POINT FIVE CENTS AT EIGHT DOLLARS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CROSSLAND FEDERAL SAVINGS BANK NEW YORK SAID FOURTH QUARTER EARNINGS SOARED BECAUSE OF A SHARP DROP IN THE COST OF BAD DEBTS CROSSLAND REPORTED NET INCOME OF THIRTEEN POINT FOUR MILLION DOLLARS OR ONE DOLLAR AND NINE CENTS A SHARE COMPARED WITH THE YEAR EARLIER EIGHT HUNDRED FORTY FOUR THOUSAND DOLLARS THE PROVISION FOR LOAN LOSSES FELL TO THREE MILLION DOLLARS FROM TWELVE MILLION DOLLARS NONPERFORMING ASSETS DROPPED SHARPLY FOR THE FULL YEAR THE FOUR POINT FIVE BILLION DOLLAR ASSET SAVINGS BANK REPORTED A NET LOSS OF ONE HUNDRED EIGHTY NINE MILLION DOLLARS COMPARED WITH NINETEEN NINETY TWO PROFIT OF FOUR HUNDRED TWENTY TWO MILLION DOLLARS THE NINETEEN NINETY THREE RESULTS INCLUDE A ONE HUNDRED EIGHTY FIVE POINT NINE DOLLAR RESTRUCTURING CHARGE RELATED TO THE COMPANY'S INITIAL PUBLIC OFFERING LAST AUGUST CROSSLAND DIDN'T GIVE PER SHARE FIGURES FOR THE YEAR EARLIER COLOMBIA HAS SOLD THREE CELLULAR TELEPHONE CONCESSIONS TO TWO SEPARATE INVESTOR GROUPS FOR A TOTAL OF SIX HUNDRED TWENTY ONE MILLION DOLLARS IN ANOTHER SIGN THAT LATIN AMERICAN COMMUNICATIONS PROPERTIES ARE HEATING UP AN INVESTOR GROUP CALLED CELUMOVIL S. A. LAUNCHED A FOUR HUNDRED SIXTY ONE DOLLAR MILLION WINNING BID FOR TWO CONCESSIONS ONE OF WHICH INCLUDES THE POTENTIALLY LUCRATIVE BOGOTA MARKET CURRENTLY THERE IS NO LARGE CELLULAR NETWORK IN COLOMBIA THE INVESTOR GROUP INCLUDES THE LARGE COLOMBIAN FIRM GRUPO SANTO DOMINGO MCCAW CELLULAR COMMUNICATIONS LCC A PRIVATELY HELD ARLINGTON VIRGINIA TELECOMMUNICATIONS FIRM PRIVATE INVESTORS AND CHASE MANHATTAN BANK A UNIT OF CHASE MANHATTAN CORPORATION WHICH ALSO ARRANGED FINANCING FOR THE DEAL MANUEL VICENTE DE LA PAVA VICE PRESIDENT AT CHASE SAYS CELUMOVIL WILL SPEND ONE HUNDRED TWENTY MILLION DOLLARS TO TWO HUNDRED FIFTY MILLION DOLLARS OVER THE NEXT THREE YEARS TO GET THE CELLULAR NETWORK UP AND RUNNING THE GROUP HOPES TO HAVE ABOUT EIGHTY THOUSAND SUBSCRIBERS BY NINETEEN NINETY SEVEN THE THIRD CONCESSION IN COLOMBIA'S WESTERN REGION WAS AWARDED TO THE COCELCO INVESTOR GROUP FOR ONE HUNDRED SIXTY MILLION DOLLARS THE GROUP IS MADE UP OF PRIVATE INVESTORS TELEFONICA OF SPAIN AND CIA DE TELEFONOS DE CHILE THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT COMERICA BANK ILLINOIS SEVENTY FIVE MILLION DOLLARS OF MEDIUM TERM NOTES DUE JANUARY THIRTY FIRST NINETEEN NINETY FIVE PRICED AT PAR TO YIELD THREE POINT FIVE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES ARE NONCALLABLE RATED SINGLE A ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE A BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY AND COMPANY COMERICA BANK ILLINOIS IS A UNIT OF COMERICA INCORPORATED FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED FIFTY MILLION DOLLARS OF NOTES DUE FEBRUARY THIRD NINETEEN NINETY SEVEN PRICED INITIALLY AT PAR TO YIELD FOUR POINT FIVE SEVEN PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR ONE YEAR AND WERE PRICED AT A SPREAD OF SEVENTEEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF FLOATINGRATE NOTES DUE FEBRUARY FOURTH NINETEEN NINETY SEVEN PRICED WEDNESDAY AT PAR ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WILL RESET DAILY AND PAY QUARTERLY AT A SPREAD OF SEVENTY EIGHT BASIS POINTS ABOVE FIFTY PERCENT OF THE PRIME RATE THE FIRST COUPON IS TO BE SET ON FEBRUARY FOURTH THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST CHICAGO CAPITAL MARKETS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION TWO HUNDRED FIFTY MILLION DOLLARS OF STEP UP MEDIUM TERM NOTES DUE FEBRUARY TENTH NINETEEN NINETY NINE PRICED AT PAR TO YIELD FOUR POINT FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE COUPON ON THE NONCALLABLE NOTES STEPS UP TO FIVE POINT SIX TWO PERCENT ON FEBRUARY TENTH NINETEEN NINETY FIVE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY PETROLEUM HEAT AND POWER COMPANY SEVENTY FIVE MILLION DOLLARS OF SUBORDINATED DEBENTURES DUE FEBRUARY FIRST TWO THOUSAND SIX PRICED AT PAR TO YIELD NINE POINT THREE SEVEN FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE DEBENTURES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLE B. TWO BY MOODY'S AND SINGLE B. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION PLAYTEX FAMILY PRODUCTS CORPORATION THREE HUNDRED SIXTY MILLION DOLLARS OF SENIOR SUBORDINATED NOTES DUE DECEMBER FIFTEENTH TWO THOUSAND THREE PRICED WEDNESDAY AT PAR TO YIELD NINE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLE B. THREE BY MOODY'S AND SINGLE B. BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY PLAYTEX FAMILY PRODUCTS IS A UNIT OF PLAYTEX PRODUCTS INCORPORATED TURNER BROADCASTING SYSTEM INCORPORATED FOUR HUNDRED FIFTY MILLION DOLLARS OF DEBT IN TWO PARTS PRICED BY UNDERWRITERS GOLDMAN SACHS AND COMPANY ACCORDING TO M. C. M. CORPORATEWATCH THE FIRST TRANCHE TWO HUNDRED FIFTY MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIRST TWO THOUSAND FOUR WAS PRICED AS SEVEN POINT FOURS AT NINETY NINE POINT EIGHT FOUR FIVE TO YIELD SEVEN POINT FOUR TWO TWO PERCENT THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE HUNDRED SEVENTY FIVE BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE TWO HUNDRED MILLION DOLLARS OF SENIOR DEBENTURES DUE FEBRUARY FIRST TWO THOUSAND FOUR WAS PRICED AS EIGHT POINT FOURS AT NINETY NINE POINT NINE TWO TWO TO YIELD EIGHT POINT FOUR OH SEVEN PERCENT THE DEBENTURES WHICH ARE NONCALLABLE FOR TEN YEARS WERE PRICED AT A SPREAD OF TWO HUNDRED THREE BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED B. A TWO BY MOODY'S AND DOUBLE B. PLUS BY S. AND P. ANESTA CORPORATION INITIAL OFFERING OF TWO POINT FIVE MILLION COMMON SHARES PRICED AT TWELVE DOLLARS AND FIFTY CENTS APIECE THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES DAIMLER BENZ A. G. FIFTEEN MILLION AMERICAN DEPOSITARY SHARES PRICED AT FORTY SIX DOLLARS AND SEVENTY FIVE CENTS APIECE THROUGH UNDERWRITERS LED BY C. J. LAWRENCE SLASH DEUTSCHE BANK MERRILL LYNCH AND COMPANY AND GOLDMAN SACHS AND COMPANY EACH A. D. R. REPRESENTS ONE TENTH OF A SHARE IN THE GERMAN CAR MAKER AND THE OFFERING REPRESENTS ONE POINT FIVE MILLION SHARES OR THREE POINT TWO PERCENT OF DAIMLER'S SHARE CAPITAL JAMESON INNS INCORPORATED INITIAL OFFERING OF TWO POINT SIX MILLION COMMON SHARES PRICED AT NINE DOLLARS APIECE THROUGH UNDERWRITERS LED BY COMMONWEALTH ASSOCIATES INTERIM SERVICES INCORPORATED INITIAL OFFERING OF TEN MILLION COMMON SHARES PRICED AT TWENTY DOLLARS APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY TELULAR CORPORATION INITIAL OFFERING OF FOUR MILLION COMMON SHARES PRICED AT TWENTY DOLLARS APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED AND ALEXANDER BROWN AND SONS INCORPORATED ILLINOIS ONE HUNDRED MILLION DOLLAR SALES TAX REVENUE BONDS APPARENTLY WON BY A MERRILL LYNCH AND COMPANY GROUP WITH A BID SETTING THE TRUE INTEREST COST AT FOUR POINT NINE FIVE NINE THREE PERCENT YIELDS RANGE FROM TWO POINT SEVEN FIVE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT THREE PERCENT IN TWO THOUSAND NINETEEN MOODY'S HAS RATED THE BONDS DOUBLE A AND S. AND P. HAS ASSIGNED A TRIPLE A RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION ONE POINT ONE BILLION DOLLARS OF STRIPPED MORTGAGE BACKED SECURITIES STRIPS TRUST TWO HUNDRED FIFTY FIVE BACKED BY THE AGENCY'S STRIPPED FIFTEEN YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF ONE HUNDRED SEVENTY SIX MONTHS UNDERWRITERS INCLUDE MERRILL LYNCH AND COMPANY KIDDER PEABODY AND COMPANY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION GOLDMAN SACHS AND COMPANY GREENWICH CAPITAL MARKETS INCORPORATED SALOMON BROTHERS INCORPORATED PAINEWEBBER INCORPORATED LEHMAN BROTHERS INCORPORATED SMITH BARNEY HARRIS UPHAM AND COMPANY AND PRUDENTIAL SECURITIES INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FIVE HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY CITICORP THE OFFERING SERIES NINETEEN NINETY FOUR TO THIRTY IS BACKED BY FANNIE MAE THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT ONE TWO FIVE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY SEVEN MONTHS CHRYSLER CORPORATION ONE POINT FIVE BILLION DOLLAR ISSUE OF AUTO LOAN ASSET BACKED CERTIFICATES PRICED IN FOUR PARTS BY UNDERWRITERS LED BY BEAR STEARNS AND COMPANY ACCORDING TO M. C. M. CORPORATEWATCH THE DEAL PREMIER AUTO TRUST NINETEEN NINETY FOUR TO ONE IS BACKED BY AUTO AND LIGHT TRUCK RECEIVABLES ORIGINATED BY CHRYSLER FINANCIAL CORPORATION AND SERVICED BY CHRYSLER CREDIT CORPORATION BOTH CHRYSLER SUBSIDIARIES THE THREE HUNDRED FIFTEEN MILLION DOLLARS IN CLASS A ONE MONEY MARKET NOTES WERE PRICED AS THREE POINT TWO EIGHTS AT PAR FOR A BOND EQUIVALENT YIELD OF THREE POINT THREE OH THREE PERCENT THE CERTIFICATES WITH AN AVERAGE LIFE OF ZERO POINT FOUR YEAR WERE RATED P. ONE BY MOODY'S AND SINGLE A ONE PLUS BY S. AND P. THE FIVE HUNDRED MILLION DOLLARS CLASS A TWO FLOATING RATE NOTES WERE PRICED AT PAR TO FLOAT NINE BASIS POINTS ABOVE THE ONE MONTH LONDON INTERBANK OFFERED RATE TO AN ELEVEN PERCENT CAP THE NOTES HAVE AN AVERAGE LIFE OF ONE POINT TWO FIVE YEARS AND WERE RATED TRIPLE A BY BOTH MOODY'S AND S. AND P. THE SIX HUNDRED TWENTY EIGHT POINT SEVEN MILLION DOLLARS IN CLASS A THREE TOTAL RATE OF RETURN BONDS WERE PRICED AS FOUR POINT SEVEN FIVES AT NINETY NINE POINT NINE NINE THREE TWO TO YIELD FOUR POINT EIGHT PERCENT A FORTY BASIS POINT SPREAD ABOVE THE TREASURY'S FOUR POINT THREE SEVEN FIVE PERCENT NOTES OF NOVEMBER NINETEEN NINETY SIX THE NOTES WITH AN AVERAGE LIFE OF TWO POINT SEVEN FIVE YEARS WERE RATED TRIPLE A BY BOTH MOODY'S AND S. AND P. THE FIFTY SIX POINT THREE MILLION DOLLARS IN CLASS B. SUBORDINATE CERTIFICATES WERE PRICED AS FOUR POINT SEVENS AT NINETY NINE POINT NINE OH SEVEN SEVEN ITO YIELD FOUR POINT SEVEN NINE PERCENT A SIXTY FIVE BASIS POINT SPREAD ABOVE THE TREASURY'S FOUR PERCENT NOTES OF JANUARY NINETEEN NINETY SIX THE CERTIFICATES WERE RATEDSINGLE A SOCIETY NATIONAL BANK TWO HUNDRED THIRTY FOUR POINT SEVEN MILLION DOLLARS OF STUDENT LOAN ASSET BACKED CERTIFICATES PRICED IN THREE PARTS THROUGH UNDERWRITERS LED BY C. S. FIRST BOSTON INCORPORATED ACCORDING TO M. C. M. CORPORATEWATCH THE ISSUE SOCIETY STUDENT LOAN TRUST NINETEEN NINETY FOUR A IS BACKED BY STUDENT LOANS THE FIFTY FIVE MILLION DOLLARS IN CLASS A ONE FLOATINGRATE NOTES WERE PRICED WITH AN INITIAL COUPON OF THREE POINT TWO SIX FIVE PERCENT AT PAR TO FLOAT FOURTEEN BASIS POINTS ABOVE THE ONE MONTH LIBOR THE CERTIFICATES HAVE AN AVERAGE LIFE OF ONE POINT ONE ONE YEARS THE ONE HUNDRED FIFTY EIGHT POINT SIX MILLION DOLLARS IN CLASS A TWO FLOATING RATE ASSET BACKED NOTES WERE PRICED WITH AN INITIAL COUPON OF THREE POINT FOUR FIVE FIVE PERCENT AT PAR TO FLOAT THIRTY THREE BASIS POINTS ABOVE ONE MONTH LIBOR THE FIRST TWO CLASSES WERE ENHANCED BY AN EIGHT PERCENT RESERVE FUND AND TEN PERCENT SUBORDINATION THE TWENTY ONE POINT ONE MILLION DOLLARS IN CLASS A THREE FLOATING RATE NOTES WERE PRICED WITH AN INITIAL COUPON OF THREE POINT SIX SEVEN FIVE PERCENT AT PAR TO FLOAT FIFTY FIVE BASIS POINTS ABOVE ONE MONTH LIBOR IT HAS A NINE POINT NINE ONE YEAR PRINCIPAL LOCKOUT PERIOD THE CLASS WAS ENHANCED BY AN EIGHT PERCENT RESERVE FUND AND A ONE HUNDRED PERCENT SURETY BOND PROVIDED BY CAPITAL MARKETS ASSURANCE CORPORATION THE ISSUE WAS RATED TRIPLE A BY BOTH MOODY'S AND S. AND P. AUSTRIA SOVEREIGN ONE BILLION DUTCH GUILDERS OF SIX POINT TWO FIVE PERCENT EUROBONDS DUE FEBRUARY TWENTY EIGHTH TWO THOUSAND TWENTY FOUR AT ISSUE PRICE NINETY EIGHT POINT EIGHT VIA A. B. N. AMRO BANK N. V. REOFFERED AT NINETY EIGHT POINT ONE FIVE TO YIELD SIX POINT THREE NINE PERCENT MARGIN OF SIXTEEN BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE AUTOBAHNEN UND SCHNELLSTRASSEN FINANZIERUNGS A. G. AUSTRIA ONE BILLION AUSTRIAN SCHILLINGS OF FIVE POINT SIX TWO FIVE PERCENT BONDS DUE FEBRUARY SEVENTEENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT OH FIVE VIA CREDITANSTALT BANKVEREIN REOFFERED AT NINETY EIGHT POINT ONE FIVE TO YIELD FIVE POINT EIGHT SEVEN PERCENT GUARANTOR REPUBLIC OF AUSTRIA FEES TWO POINT ONE TWO FIVE CAISSE CENTRALE DE CREDIT IMMOBILIER FRANCE TWO BILLION FRENCH FRANCS OF SIX PERCENT EUROBONDS DUE FEBRUARY TWENTY FIRST TWO THOUSAND TWO AT ISSUE AND REOFFER PRICE NINETY SEVEN POINT NINE TWO VIA CAISSE DES DEPOTS ET CONSIGNATIONS BONDS YIELD SIX POINT THREE FOUR PERCENT A MARGIN OF SEVENTY BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES ZERO POINT THREE FIVE CREDIOP OVERSEAS BANK LIMITED ITALIAN PARENT TWO HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE MARCH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT SIX FIVE VIA CREDIT SUISSE FIRST BOSTON LIMITED PAYABLE SEMIANNUALLY AT SIX MONTH DOLLAR LIBOR PLUS FIFTEEN BASIS POINTS GUARANTOR CREDIOP COMPANY FEES ZERO POINT TWO ZERO D. S. L. FINANCE N. V. GERMAN PARENT ONE POINT FIVE BILLION FRENCH FRANCS OF FIVE POINT SEVEN FIVE PERCENT EUROBONDS DUE FEBRUARY TWENTY THIRD TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE NINETY EIGHT POINT SIX SEVEN VIA DEUTSCHE BANK FRANCE S. N. C. AND BANQUE INDOSUEZ BONDS YIELD FIVE POINT NINE THREE PERCENT A MARGIN OF TWENTY TWO BASIS POINTS OVER COMPARABLE FRENCH TREASURY GUARANTOR DEUTSCHE SIEDLUNGSUND LANDESRENTENBANK FEES ZERO POINT THREE SEVEN FIVE HELABA FINANCE B. V. AMSTERDAM GERMAN PARENT TWO HUNDRED MILLION CANADIAN DOLLARS OF SIX POINT FIVE PERCENT EUROBONDS DUE FEBRUARY TWENTY FIFTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT FOUR FOUR FIVE VIA DAIWA EUROPE LIMITED REOFFERED AT NINETY EIGHT POINT SEVEN SEVEN TO YIELD SIX POINT SIX SEVEN PERCENT A MARGIN OF EIGHTEEN BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND GUARANTOR LANDESBANK HESSEN THUERINGEN GIROZENTRALE FEES TWO L. A. B. INVESTMENTS P. L. C. SPECIAL PURPOSE VEHICLE EIGHTY FIVE MILLION POUNDS OF ASSET BACKED SEVEN POINT ONE TWO FIVE PERCENT EUROBONDS DUE FEBRUARY EIGHTEENTH TWO THOUSAND NINETEEN AT ISSUE AND PRICE NINETY NINE POINT THREE EIGHT THREE VIA NATWEST CAPITAL MARKETS BONDS YIELD SEVEN POINT TWO ONE PERCENT A MARGIN OF SEVENTY BASIS POINTS OVER COMPARABLE BRITISH GILT ISSUE SECURED ON LOAN INSTRUMENTS ISSUED BY LONDON BOROUGH OF ENFIELD MANCHESTER BOROUGH COUNCIL AND CITY OF YORK FEES UNDISCLOSED PAYABLE SEMIANNUALLY LKB FINANCE N. V. GERMAN PARENT THREE HUNDRED BILLION LIRE OF SEVEN POINT EIGHT PERCENT EUROBONDS DUE MARCH EIGHTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT SEVEN FIVE VIA CREDITO ITALIANO BONDS YIELD SEVEN POINT EIGHT FOUR PERCENT AFTER FULL FEES OF TWO GUARANTOR LANDESKREDITBANK BADEN WUERTTEMBERG ONTARIO CANADIAN PROVINCE TWO BILLION DOLLARS OF GLOBAL FLOATING RATE NOTES DUE AUGUST SEVENTEENTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT FIVE NINE FIVE VIA LEHMAN BROTHERS INCORPORATED AND MERRILL LYNCH AND COMPANY PAYABLE QUARTERLY AT THREE MONTH DOLLAR LIBOR FLAT BONDS YIELD EIGHT BASIS POINTS OVER LIBOR FEES ZERO POINT ONE FIVE TEM FAT HING FUNG HOLDING LIMITED HONG KONG FIFTY MILLION DOLLARS OF PRIVATELY PLACED CONVERTIBLE NOTES CARRYING INDICATIVE COUPON BETWEEN TWO POINT TWO FIVE PERCENT AND TWO POINT SEVEN FIVE PERCENT DUE FEBRUARY TWENTY SEVENTH TWO THOUSAND TWO AT PAR VIA S. G. WARBURG AND COMPANY GENEVA NOTES CONVERTIBLE FROM FEBRUARY TWENTY FIFTH TO FEBRUARY TENTH TWO THOUSAND TWO AT EXPECTED TEN PERCENT TO FIFTEEN PERCENT PREMIUM OVER CLOSING SHARE PRICE FEBRUARY SECOND WHEN TERMS ARE TO BE FIXED FEES TWO POINT ONE TWO FIVE TOYOBO COMPANY JAPAN FIVE BILLION YEN OF FLOATING RATE EURONOTES DUE FEBRUARY SEVENTEENTH NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA D. K. B. INTERNATIONAL P. L. C. PAYABLE QUARTERLY AT THREE MONTH YEN LIBOR PLUS TWENTY SEVEN POINT FIVE BASIS POINTS FEES ZERO POINT TWO THE FEDERAL NATIONAL MORTGAGE ASSOCIATION'S TWO HUNDRED FIFTY MILLION DOLLAR ISSUE OF STEPUP MEDIUM TERM NOTES DUE FEBRUARY TENTH NINETEEN NINETY NINE WAS PRICED AT PAR TO YIELD FOUR POINT FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES ARE CALLABLE ON FEBRUARY TENTH NINETEEN NINETY FIVE AT THAT TIME THE COUPON ON THE NOTES STEPS UP TO FIVE POINT SIX TWO PERCENT IN FRIDAY'S NEW SECURITIES ISSUES COLUMN IT WAS INCORRECTLY STATED THAT THE NOTES WERE NONCALLABLE THE FIRST TWO CLASSES OF A SOCIETY NATIONAL BANK TWO HUNDRED THIRTY FOUR POINT SEVEN MILLION DOLLAR STUDENT LOAN ASSET BACKED SECURITIES ISSUE HAVE NINE PERCENT SUBORDINATION THE BANK IS A UNIT OF SOCIETY CORPORATION THE SUBORDINATION IS THE PORTION OF THE ISSUE SET ASIDE TO PROTECT HOLDERS OF THE FIRST TWO CLASSES A ONE AND A TWO FROM LOSS THE HOLDERS OF THESE TWO CLASSES HAVE THE RIGHT TO RECEIVE PRINCIPAL AND INTEREST BEFORE THE HOLDERS OF THE THIRD CLASS B. ONE THE FIRST TWO CLASSES ARE FLOATING RATE NOTES AND THE THIRD CLASS IS FLOATING RATE CERTIFICATES IN FRIDAY'S NEW SECURITIES ISSUES COLUMN THE SUBORDINATION OF THE FIRST TWO CLASSES WAS MISSTATED AS TEN PERCENT AND THE THIRD CLASS WAS MISIDENTIFIED AS A THREE SHAREHOLDERS OF SOFTKEY SOFTWARE PRODUCTS INCORPORATED APPROVED THE MERGER OF THE TORONTO COMPANY WITH TWO U. S. SOFTWARE CONCERNS WORDSTAR INTERNATIONAL INCORPORATED OF NOVATO CALIFORNIA AND BOSTON BASED SPINNAKER SOFTWARE CORPORATION UNDER THE TERMS OF THE COMPLEX COMBINATION OF THE THREE SOFTWARE CONCERNS SOFTKEY SHAREHOLDERS WILL RECEIVE THREE POINT TWO SIX SHARES OF WORDSTAR WHICH IN TURN WILL CONTROL ALL VOTING SHARES OF THE NEW ENTITY SOFTKEY INTERNATIONAL INCORPORATED THE COMPANY EXPECTS TO CONSOLIDATE THE WORDSTAR SHARES ON A TEN FOR ONE BASIS ONCE THE MERGER IS CONCLUDED SOFTKEY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL PERIK SAID HE EXPECTS THE MERGER TO RECEIVE FINAL APPROVAL FROM A CANADIAN COURT AND TAKE EFFECT NEXT WEEK AMERICAN EXPRESS COMPANY REVIVED ITS COMPLAINT THAT VISA U. S. A FALSELY CLAIMS IN ITS PROMOTIONAL MATERIAL THAT MERCHANTS HAVE QUIT ACCEPTING THE AMERICAN EXPRESS CARD THE LAWSUIT FILED IN U. S. DISTRICT COURT IN NEW YORK BY AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY SAID A NEWSLETTER DISTRIBUTED TO RESTAURANTS AND ALLEGEDLY UNDERWRITTEN BY VISA QUOTE FALSELY STATES QUOTE THAT CHEF WOLFGANG PUCK STOPPED ACCEPTING THE AMERICAN EXPRESS CARD AT SEVERAL RESTAURANTS IN CALIFORNIA AND NEVADA AFTER CONDUCTING A TEST AMONG CUSTOMERS VISA SPOKESMAN GREGORY HOLMES SAID THE NEWSLETTER WAS INACCURATE AND A CORRECTION WILL APPEAR IN THE NEXT EDITION STATING THE AMERICAN EXPRESS CARD IS ACCEPTED AT CHINOIS ON MAIN IN SANTA MONICA CALIFORNIA AND SPAGO IN LAS VEGAS THE SUIT SEEKS TO ENJOIN ALLEGED FALSE ADVERTISING AND UNSPECIFIED DAMAGES IN HALF A DECADE AS A HOT INSTITUTIONAL BROKER RAFI KHAN BUILT AN ENVIABLE REPUTATION FOR PICKING STOCKS THAT SUBSEQUENTLY SOARED IN VALUE NOW THE FORTY THREE YEAR OLD PAKISTANI NATIVE IS THE SUBJECT OF LOTS OF UNWANTED ATTENTION HIS ASSOCIATIONS WITH THE POWERFUL MONEY MANAGERS AND SWINDLERS WITH WHOM HE HAS RUBBED ELBOWS ARE COMING UNDER INCREASED SCRUTINY BY LAW ENFORCEMENT OFFICIALS AND OTHERS FEDERAL INVESTIGATORS RECENTLY SUBPOENAED ALL OF MR. KHAN'S TRADING RECORDS FROM A STOCK BROKERAGE FIRM THAT HE PARTLY OWNS AND THAT ALSO EMPLOYS A CANADIAN STOCK SWINDLER THE FEDERAL BUREAU OF INVESTIGATION HAS BEEN ASKING ABOUT MR. KHAN'S DEALINGS WITH ANOTHER CONVICTED SWINDLER WHOSE FAMILY HAS A FORTY PERCENT STAKE IN A SMALL OVER THE COUNTER COMPANY IN WHICH MR. KHAN HAS BEEN TRADING RECENTLY SAYS ONE FORMER EMPLOYEE OF MR. KHAN SOME CANADIAN AND U. S. REGULATORS HAVE BEGUN INFORMAL INQUIRIES INVOLVING SOME OF THE STOCKS MR. KHAN HAS BACKED AND THE FUNDS THAT HAVE PURCHASED THEM THESE DEVELOPMENTS FOLLOW THE REQUEST BY A FEDERAL JUDGE IN NEW YORK THAT THE JUSTICE DEPARTMENT INVESTIGATE WHETHER MR. KHAN COMMITTED PERJURY IN TESTIMONY HE GAVE AS PART OF A BATTLE THAT HE IS WAGING FOR CONTROL OF I. C. N. PHARMACEUTICALS INCORPORATED FOR HIS PART MR. KHAN DENIES ANY WRONGDOING AND SAYS HE HAS NEVER BEEN CHARGED WITH A CRIME ALL THAT INVESTIGATORS WILL GET BY LOOKING THROUGH HIS TRADING RECORDS IS A QUOTE HEADACHE QUOTE HE SAYS DURING A LENGTHY INTERVIEW AT HIS HOME HERE WHICH DOUBLES AS HIS OFFICE HOWEVER MR. KHAN DOES EXPRESS BITTERNESS AND FRUSTRATION AT WHAT HE FEELS IS THE UNFAIR TREATMENT HE IS RECEIVING AT THE HANDS OF GOVERNMENT OFFICIALS THE NEWS MEDIA AND SOME OF HIS LONGTIME MUTUAL FUND CLIENTS WHO HE SAYS HAVE SHUNNED HIM IN RECENT WEEKS MR. KHAN CONCEDES THAT SOME OF THAT WARINESS IS UNDERSTANDABLE GIVEN THE BAD PUBLICITY HE HAS BEEN RECEIVING PART OF THE COVERAGE WAS SPARKED BY THE FIRING LAST MONTH OF PROMINENT MUTUAL FUND MANAGER JOHN KAWESKE WHO WAS DISMISSED BY DENVER BASED INVESCO FUNDS GROUP FOR ALLEGEDLY VIOLATING THE FIRM'S EMPLOYEE STOCK TRADING RULES MR. KAWESKE HAS DENIED ANY WRONGDOING MR. KHAN WAS PUT IN THE SPOTLIGHT PARTLY BECAUSE HE HAD WORKED CLOSELY WITH MR. KAWESKE THE FUND MANAGER HAD PURCHASED A NUMBER OF THE BROKER'S FAVORITE STOCKS EITHER FOR INVESCO OR HIS OWN PERSONAL STOCK PORTFOLIO HOWEVER INVESCO HAS DENIED THAT MR. KAWESKE'S DISMISSAL WAS CONNECTED TO HIS DEALINGS WITH MR. KHAN THE BROKER BLAMES HIS CURRENT WOES ON WHAT HE CALLS A DESPICABLE CAMPAIGN BY I. C. N. MANAGEMENT THAT HAS INCLUDED THE FILING OF A LAWSUIT CHARGING MR. KHAN WITH FRAUD HIRING PRIVATE DETECTIVES TO DELVE INTO HIS PAST AND RUNNING FULL PAGE NEWSPAPER ADS ATTACKING HIS CREDIBILITY I. C. N. MANAGEMENT SAYS IT IS OPTIMISTIC THAT IT WILL WIN A SHAREHOLDER VOTE SET FOR TUESDAY MR. KHAN DECLINES TO PREDICT THE OUTCOME YET MR. KHAN'S TROUBLES ALSO SEEM CONNECTED TO SOME BROADER WORRIES PERCOLATING THROUGH THE SECURITIES BUSINESS REGULATORS PRIVATELY QUESTION WHETHER HIGH POWERED STOCK PROMOTERS AND BROKERS HAVE DEVELOPED TOO COZY A RELATIONSHIP WITH SOME FUND MANAGERS THEY WORRY THAT SOME MANAGERS MAY BE GETTING IMPROPER INDUCEMENTS TO PURCHASE CERTAIN STOCKS FOR THEIR FUNDS WHILE NO ONE HAS CITED ANY SPECIFIC EVIDENCE OF WRONGDOING BY MR. KHAN SOME REGULATORS MENTION HIM AS THE KIND OF PERSON WHOSE DEALINGS THEY WANT TO EXAMINE MORE CLOSELY MR. KHAN CERTAINLY HAS HAD A CAREER TO ATTRACT ATTENTION A LONGTIME INSURANCE ACTUARY HE BECAME A STOCKBROKER ONLY ABOUT SIX YEARS AGO LANDING A JOB AT A REGIONAL FIRM IN LOS ANGELES HE SOON BEGAN ATTRACTING INSTITUTIONAL CLIENTS WITH HIS COMBINATION OF ASTUTE PICKS AND FLAMBOYANCE HIS COMPANY ANALYSES DONE IN WHAT MR. KHAN CALLS HIS NATIONAL ENQUIRER STYLE FEATURE LARGE BOLD TYPE CAPITAL LETTERS AND PROVOCATIVE HEADLINES SUCH AS HIS DESCRIPTION OF A FAVORED KENTUCKY LIFE INSURANCE COMPANY AS FINGERLICKIN' GOOD RAFI IS ONE OF THE MOST INCISIVE AND IMAGINATIVE PEOPLE IN HIS TRADE SAYS SETH GLICKENHAUS FOUNDER AND PRESIDENT OF GLICKENHAUS AND COMPANY A NEW YORK MONEY MANAGER THE CURRENT F. B. I. INQUIRY INTO MR. KHAN IS LOOKING IN PART AT HIS ACTIVITIES AT THE BEVERLY HILLS CALIFORNIA BROKERAGE FIRM REYNOLDS KENDRICK STRATTON LAST YEAR MR. KHAN WENT TO WORK AT REYNOLDS KENDRICK AND INVESTED FIVE HUNDRED THOUSAND DOLLARS AS PART OF A NEW OWNERSHIP GROUP AT THE FIRM TO HELP RUN THE FIRM THE NEW OWNERSHIP BROUGHT IN IRVING KOTT A CONVICTED CANADIAN STOCK SWINDLER WITH AN INTERNATIONAL RECORD OF CRIMINAL AND REGULATORY PROBLEMS DATING BACK TO THE NINETEEN SEVENTIES MR. KHAN SAYS HE HAD NOTHING TO DO WITH THAT HIRING AND LEFT THE FIRM AFTER HE LEARNED OF MR. KOTT'S PAST HOWEVER HE RETAINS HIS SEVEN PERCENT OWNERSHIP INTEREST IN THE BROKERAGE FIRM A REYNOLDS KENDRICK SPOKESMAN SAYS THE U. S. ATTORNEY'S OFFICE IN NEW YORK HAS SUBPOENAED ALL OF MR. KHAN'S TRADING RECORDS AT THE FIRM AS FOR MR. KOTT HE IS STILL A CONSULTANT AT THE FIRM THE SPOKESMAN SAYS MR. KOTT COULDN'T BE REACHED TO COMMENT KRISTINA KRAVERICA A TWENTY THREE YEAR OLD FORMER ASSISTANT TO MR. KHAN SAYS SHE WAS RECENTLY CONTACTED BY F. B. I. AGENTS WHO INQUIRED ABOUT THE BROKER'S DEALINGS WITH SHERMAN MAZUR A LOS ANGELES REAL ESTATE SYNDICATOR WHO IS SERVING A SIX YEAR FEDERAL PRISON SENTENCE FOR FRAUD BEFORE HIS INCARCERATION MR. MAZUR WAS A NEARLY FULL TIME CONSULTANT TO GERANT INDUSTRIES INCORPORATED A BEVERLY HILLS FIRM THAT IS FORTY PERCENT OWNED BY MR. MAZUR AND HIS FAMILY IN RECENT MONTHS MR. KHAN HAS PLACED ABOUT TEN PERCENT OF GERANT'S ONE HUNDRED THIRTY MILLION SHARES WITH SOME OF HIS MAJOR INSTITUTIONAL CLIENTS MR. KHAN ACKNOWLEDGES HE ALSO HELPED PERSUADE HIS NEW EMPLOYER PHOENIX BASED DESERT MOUNTAIN SECURITIES TO BECOME A MARKET MAKER FOR GERANT MR. KHAN SAYS HE THOUGHT THE STOCK OF GERANT WHICH HAS INTERESTS IN BLOOD PLASMA CENTERS AND REAL ESTATE HAD POTENTIAL TO INCREASE SUBSTANTIALLY THE STOCK CLOSED YESTERDAY IN NASDAQ STOCK MARKET TRADING AT SIX POINT TWO FIVE CENTS A SHARE UNCHANGED MR. KHAN SAYS HE MET MR. MAZUR ON A FEW OCCASIONS MOSTLY OF A SOCIAL NATURE INCLUDING A COUPLE OF RACQUETBALL GAMES HE SAYS HE KNEW OF MR. MAZUR'S LEGAL TROUBLES BUT THAT DIDN'T DETER HIS INTEREST IN GERANT MR. KHAN SAYS HIS DEALINGS WITH MR. MAZUR WERE COMPLETELY ABOVEBOARD DESPITE ALL OF THE RECENT DIVERSIONS MR. KHAN SAYS HE IS TRYING TO KEEP FOCUSED ON TUESDAY'S SHOWDOWN WITH I. C. N. MANAGEMENT HE SAYS HE HAS SPENT TWO MILLION DOLLARS OF HIS OWN MONEY IN THE FIGHT AND GONE QUOTE NEARLY BROKE QUOTE IN THE PROCESS EVEN IF HE LOSES THE I. C. N. FIGHT MR. KHAN VOWS HE WILL BE BACK FIGHTING TO REGAIN HIS CLIENTS AND HIS PLACE IN THE SECURITIES BUSINESS HE HAS NO DOUBT THAT HE CAN POINTING TO A STACK OF HIS OWN RESEARCH REPORTS ON HIS DESK HE PROCLAIMS YOU WON'T FIND TALENT LIKE THAT ANYWHERE ELSE NOW THAT THE CLINTON ADMINISTRATION HAS ESTABLISHED ITS FREE TRADE CREDENTIALS BY CHAMPIONING THE CAUSE OF REDUCED TARIFFS AND LOWER TRADE BARRIERS ACROSS NORTH AMERICA AND THROUGHOUT THE WORLD HOW IS IT GOING TO FRAME THE CONTINUING DISPUTE BETWEEN THE U. S. AND JAPAN ITS SECOND LARGEST TRADE PARTNER THE WORRISOME ANSWER IS THAT THE U. S. IS COMING DANGEROUSLY CLOSE TO CEDING THE MORAL HIGH GROUND TO JAPAN IN THE DEBATE OVER THE DUBIOUS MERITS OF MANAGED TRADE AND NUMERICAL QUOTE TARGETS QUOTE FOR SELECTED INDUSTRIES EVEN WORSE THE CLINTON ADMINISTRATION SEEMS PREPARED TO UNDO MUCH OF ITS PROGRESS TOWARD ACHIEVING AN OPEN GLOBAL ECONOMY BY RESERVING THE RIGHT TO CHANGE THE MONETARY TERMS OF TRADE WHENEVER IT DEEMS A NATION GUILTY OF SELLING TOO MANY GOODS TO AMERICAN CONSUMERS RELYING ON EXCHANGE RATE MOVEMENTS TO COMBAT A TRADE SURPLUS MAKES A MOCKERY OF THE DOCTRINE OF FREE TRADE DOES IT MAKE SENSE TO HAVE PERSEVERED THROUGH THE WRENCHING URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE ACHIEVING A REDUCTION IN THE AVERAGE TARIFF AMONG ONE HUNDRED SIXTEEN COUNTRIES TO TWO POINT EIGHT PERCENT FROM FOUR POINT SEVEN PERCENT OVER A PERIOD OF SEVERAL YEARS ONLY TO SEE EXCHANGE RATES MOVE FIFTEEN PERCENT OR TWENTY PERCENT IN A MATTER OF MONTHS WIPING OUT THE REWARDS OF LEGITIMATE COMPETITION WITH CURRENCY LOSSES WHEN A GOVERNMENT ACTS DELIBERATELY TO WEAKEN THE VALUE OF ITS MONEY AGAINST OTHER CURRENCIES EFFECTIVELY RAISING PRICES ON IMPORTED GOODS AND PUNISHING FOREIGN COMPETITORS IT IS PRACTICING THE MOST INSIDIOUS FORM OF PROTECTIONISM WE HAVE ALREADY GLIMPSED THAT STRATEGY AT WORK BEHIND THE NUANCED UTTERANCES AND VEILED THREATS ISSUED BY TREASURY SECRETARY LLOYD BENTSEN OVER THE PAST YEAR AIMED AT REDUCING THE VALUE OF THE DOLLAR AGAINST THE JAPANESE YEN JUST THREE WEEKS AGO NO DOUBT WITH THE SCHEDULED FEBRUARY ELEVENTH MEETING BETWEEN PRESIDENT BILL CLINTON AND JAPAN'S PRIME MINISTER MORIHIRO HOSOKAWA IN MIND MR. BENTSEN ISSUED THIS PURPOSEFUL WARNING TO TOKYO ALLOWING THE YEN TO SLIDE IS NOT AN ACCEPTABLE WAY OUT OF RECESSION FOR JAPAN LOOK WHO'S TALKING MR. BENTSEN HAS BEEN THE DRIVING FORCE BEHIND THE U. S. EFFORT TO MANIPULATE THE DOLLAR YEN EXCHANGE RATE SO THAT JAPANESE GOODS ARE RENDERED MORE EXPENSIVE FOR AMERICAN CONSUMERS AND U. S. PRODUCTS ARE MADE LESS EXPENSIVE FOR JAPANESE CONSUMERS IT WAS SCARCELY MORE THAN A YEAR AGO THAT IT TOOK ONE HUNDRED TWENTY FOUR YEN TO PURCHASE ONE DOLLAR IN DECEMBER NINETEEN NINETY TWO NEWLY ELECTED PRESIDENT CLINTON AT HIS HIGH PROFILE ECONOMIC CONFERENCE IN LITTLE ROCK ARKANSAS DECLARED I'M FOR A STRONG DOLLAR WELL YOU CAN HARDLY EXPECT AN INCOMING U. S. COMMANDER IN CHIEF TO GO ON RECORD AS FAVORING A WEAK DOLLAR BUT JUST TWO MONTHS LATER MR. BENTSEN MADE THE WHITE HOUSE'S PREFERENCES QUITE CLEAR SPEAKING BEFORE REPORTERS AT THE NATIONAL PRESS CLUB HE SAID I'D LIKE TO SEE A STRONGER YEN CURRENCY TRADERS DO NOT REQUIRE MUCH PRODDING THEY ACTED QUICKLY ON THIS LESS THAN SUBTLE HINT THAT WASHINGTON WANTED TO SEE THE VALUE OF THE DOLLAR SLIDE AGAINST THE YEN CONFIDENT THAT THE U. S. GOVERNMENT WOULD NOT INTERVENE CURRENCY SPECULATORS SOLD DOLLARS AND BOUGHT YEN PUSHING UP THE VALUE OF THE YEN TO RECORD LEVELS AGAINST THE DOLLAR BY APRIL JAPANESE OFFICIALS WERE BECOMING ALARMED THE YEN WAS APPROACHING AN EXCHANGE RATE OF ONE HUNDRED THIRTEEN TO THE DOLLAR WHICH AMOUNTED TO A NINE PERCENT PRICE RISE ON JAPANESE GOODS SOLD IN THE U. S. THE WHITE HOUSE MIGHT JUST AS WELL HAVE SLAPPED ON AN EXPLICIT TARIFF HOWEVER WHEN JAPAN'S THEN PRIME MINISTER KIICHI MIYAZAWA PERSONALLY CONFRONTED MR. CLINTON WITH THE HIGH YEN PROBLEM STEMMING FROM MR. BENTSEN'S INJUDICIOUS REMARKS THE COMPLAINT WAS REBUFFED INSTEAD OF CONDEMNING THE PRACTICE OF TALKING DOWN THE DOLLAR MR. CLINTON PUBLICLY CONDONED IT INDEED HE CITED THE HIGH YEN AS NUMBER ONE ON A LIST OF THE THINGS WORKING TODAY WHICH MAY GIVE US MORE RESULTS IN SHRINKING THE HUGE U. S. TRADE DEFICIT WITH JAPAN WITHIN TWO DAYS AFTER THE MEETING WITH MR. MIYAZAWA THE YEN HIT A POSTWAR HIGH OF ONE HUNDRED TEN TO THE DOLLAR MR. CLINTON WAS ROUNDLY CHASTISED BY THE BANK OF JAPAN FOR MAKING WHAT IT CONSIDERED HIGHLY INAPPROPRIATE COMMENTS THERE ARE SOME DANGEROUS SIGNS THAT THERE IS TOO MUCH TOYING AROUND WITH EXCHANGE RATES EXPLAINED A SENIOR BANK OFFICIAL JAPAN'S TRADE MINISTER ASSERTED THAT HE FELT QUOTE EXTREMELY ANGRY QUOTE AT THE WAY THE CLINTON ADMINISTRATION HAD TALKED UP THE YEN BUT THE DAMAGE WAS DONE CONSTRUING THE COMMENTS OF THE U. S. PRESIDENT AS A MARKET DIRECTIVE CURRENCY TRADERS FURIOUSLY SOLD DOLLARS FOR YEN IN INTERNATIONAL MARKETS AND REFUSED TO CHANGE COURSE EVEN WHEN THE U. S. FEDERAL RESERVE STEPPED IN TO ATTEMPT TO HALT THE DOLLAR SLIDE IN LATE MAY TREASURY UNDERSECRETARY LAWRENCE SUMMERS WHO HAD BEEN A PROPONENT OF THE STRONG YEN STRATEGY WAS FORCED TO CONCEDE THE MARKET HAS MOVED TOO FAR TOO FAST EVEN MR. BENTSEN FELT COMPELLED TO INSIST THAT THE U. S. DIDN'T WANT THE DOLLAR TO FALL ANY FURTHER STILL THE DOLLAR WOULD WEAKEN TO THE SHOCKINGLY LOW VALUE OF JUST OVER ONE HUNDRED YEN TO THE DOLLAR IN AUGUST AN EIGHTEEN PERCENT DROP FROM SEVEN MONTHS EARLIER SINCE THEN IT HAS REGAINED ABOUT HALF THE LOSS CURRENTLY TRADING AT ABOUT ONE HUNDRED TWELVE YEN FOR ALL THE JAPANESE COMPANIES THAT BASED THEIR PLANNING ON AN EXCHANGE RATE OF ONE HUNDRED FIFTEEN TO ONE HUNDRED SEVENTEEN YEN TO THE DOLLAR HOWEVER THAT IS LITTLE COMFORT JAPAN'S INDUSTRY ANALYSTS CALCULATE THAT AT ONE HUNDRED TEN YEN TO THE DOLLAR BARELY ONE IN FIFTY OF THE NATION'S EXPORTERS ARE PROFITABLE MOREOVER LEST TOKYO GROWS HOPEFUL AT THE PROSPECT THAT A STRENGTHENING DOLLAR MIGHT ENABLE ITS EXPORTING COMPANIES TO BECOME PROFITABLE ONCE AGAIN MR. BENTSEN FIRED A SHOT ACROSS JAPAN'S BOW WITH HIS STERN LECTURE ABOUT MANIPULATING THE YEN'S VALUE IN EXCHANGE MARKETS THE PROBLEM IS JAPAN'S SHIP HAS ALREADY STARTED TO SINK WITH THE STAGGERING DEFEAT LAST FRIDAY OF MR. HOSOKAWA'S PLAN TO CARRY OUT ELECTORAL REFORM JAPAN'S COALITION GOVERNMENT HAS BEEN PLUNGED INTO POLITICAL CHAOS MR. HOSOKAWA MAY BE FORCED TO RESIGN PERPETUATING THE LACK OF LEADERSHIP THAT HAS COMPOUNDED JAPAN'S INABILITY TO DEAL WITH ITS PRESSING ECONOMIC PROBLEMS PLAGUED BY RECESSION FOR MORE THAN THREE YEARS THE WORLD'S SECOND RICHEST COUNTRY IS SERIOUSLY HURTING STAGNANT GROWTH IS TAKING ITS TOLL ON BOTH THE JAPANESE PSYCHE AND POCKETBOOK AS COMPANIES STRUGGLE TO RESPOND TO THE SLUMP BY CUTTING WORKERS JAPAN'S BANKS ARE WEIGHTED DOWN WITH BAD LOANS AND SMALLER JAPANESE FIRMS ARE INCREASINGLY DECLARING BANKRUPTCY SOME OF THE BUSINESS CASUALTIES ARE DIRECTLY ATTRIBUTABLE TO THE YEN'S APPRECIATION AGAINST THE DOLLAR JAPANESE CONSUMERS ARE DISPLAYING A GLOOMY RELUCTANCE TO PURCHASE DOMESTICALLY PRODUCED GOODS LET ALONE AMERICAN IMPORTS MEANWHILE THE STOCK MARKET IN TOKYO DROPPED AN ASTOUNDING FOUR POINT NINE PERCENT ON MONDAY IN RESPONSE TO THE LATEST POLITICAL DEBACLE BUT MR. BENTSEN HASN'T BEEN DETERRED FROM ENGAGING IN DARK INNUENDO ABOUT THE CONSEQUENCES FOR JAPAN IF IT FAILS TO REACH CREDIBLE AGREEMENTS WITH THE U. S. IN TIME FOR NEXT MONTH'S SUMMIT HIS LATEST TOUGH REMARKS COMING TWO DAYS AFTER THE HOSOKAWA GOVERNMENT WAS DEVASTATED BY THE POLITICAL REFORM CRISIS SUGGEST A HIT'EM WHILE THEY'RE DOWN APPROACH TO GAINING TRADE CONCESSIONS AND SMACKS OF GLOBAL ECONOMIC BULLYING ALL OF WHICH BRINGS TO MIND THE RESPONSE OF SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN D. N. Y. LAST SPRING TO THE ASSERTION BY DEPUTY U. S. TRADE REPRESENTATIVE CHARLENE BARSHEFSKY THAT JAPAN SIMPLY MUST REDUCE ITS TRADE SURPLUS MUST ASKED SENATOR MOYNIHAN EXASPERATED WHAT WILL YOU DO IF IT DOESN'T BOMB TOKYO ECONOMICS IS NOT WAR MANIPULATING CURRENCIES CAN LEAD TO WAR HOWEVER WITNESS THE DEVASTATING SYNDROME OF COMPETITIVE DEVALUATIONS IN THE NINETEEN THIRTIES AS NATIONS SOUGHT TO UNDERCUT EACH OTHER'S ABILITY TO SELL PRODUCTS IN WORLD MARKETS INSTEAD OF BOOSTING GLOBAL DEMAND AND EMPLOYMENT LEVELS THE EXERCISE RESULTED IN A DOWNWARD SPIRAL OF INCREASINGLY ISOLATIONIST ECONOMIC POLICIES THAT IN TURN FOSTERED GREATER POLITICAL TENSIONS THE COMBINATION OF GLOBAL STAGNATION AND MONETARY NATIONALISM SET THE STAGE FOR WORLD WAR TWO MR. CLINTON NEEDS TO MUZZLE HIS TREASURY SECRETARY AND THINK THROUGH HIS OWN CONCEPTUAL FRAMEWORK ABOUT THE RELATIONSHIP BETWEEN STABLE CURRENCY VALUES AND INTERNATIONAL COMMERCE ALL THE FREETRADE AGREEMENTS IN THE WORLD CAN'T COMPENSATE FOR THE DAMAGE INFLICTED BY FINANCE MINISTERS AND EVEN CHIEF EXECUTIVES WHO FIND IT EASIER TO FIDDLE WITH EXCHANGE RATES THAN TO TAKE CONCRETE MEASURES TO IMPROVE THEIR NATIONS' PERFORMANCE IN THE GLOBAL ECONOMY MS. SHELTON A RESEARCH FELLOW AT THE HOOVER INSTITUTION IS AUTHOR OF THE FORTHCOMING QUOTE MONEY MELTDOWN QUOTE FREE PRESS GENERAL MOTORS CORPORATION DETROIT SAID ITS WORLD WIDE SHIPMENTS OF NORTH AMERICAN PRODUCED VEHICLES REACHED ONE HUNDRED THIRTY NINE THOUSAND FOUR HUNDRED THIRTY FIVE IN NINETEEN NINETY THREE UP FIVE POINT EIGHT PERCENT FROM NINETEEN NINETY TWO SHIPMENTS OF FULLY ASSEMBLED VEHICLES TOTALED ONE HUNDRED SIXTEEN THOUSAND FIVE HUNDRED FIFTEEN COMPARED WITH ONE HUNDRED THIRTEEN THOUSAND SEVEN HUNDRED NINETY IN NINETEEN NINETY TWO EXPORTS OF PARTIALLY ASSEMBLED VEHICLES EQUALED TWENTY TWO THOUSAND NINE HUNDRED TWENTY COMPARED WITH SEVENTEEN THOUSAND NINE HUNDRED NINETY ONE A YEAR EARLIER QUOTE OUR SALES PICTURE IS STRONG DESPITE WEAKENED ECONOMICS IN MANY PARTS OF THE WORLD QUOTE SAID RICHARD M. LEE EXECUTIVE INCHARGE OF G. M. NORTH AMERICAN EXPORTS SALES IN SPITE OF RECESSIONARY CONDITIONS CONTRIBUTING TO AN OVERALL INDUSTRY DECLINE IN EUROPE G. M. SAID ITS NORTH AMERICAN EXPORT SALES HAVE CONTINUED TO INCREASE WITH THE PONTIAC TRANS SPORT AS THE TOP SELLER IN THE MIDDLE EAST TRADITIONALLY G. M.'S LARGEST EXPORT MARKET SHIPMENTS TOTALED FIFTY THOUSAND EIGHT HUNDRED FORTY COMPARED WITH FIFTY THOUSAND FOUR HUNDRED SIXTY EIGHT A YEAR EARLIER STOCKS RALLIED TO A RECORD AS INVESTORS' FEARS ABOUT RISING INTEREST RATES CONTINUED TO EASE BOND PRICES JUMPED FOR A SECOND STRAIGHT DAY AND UTILITIES POSTED THEIR BIGGEST GAIN IN THREE YEARS THAT COMBINED WITH SOLID GOVERNMENT REPORTS ON DURABLE GOODS ORDERS AND JOBLESS CLAIMS SENT INVESTORS SCURRYING INTO A BROAD RANGE OF STOCKS THE DOW JONES INDUSTRIAL AVERAGE CLIMBED EIGHTEEN POINT THREE OH OR ZERO POINT FOUR SEVEN PERCENT TO THREE THOUSAND NINE HUNDRED TWENTY SIX POINT THREE OH TOPPING A RECORD THAT WAS SET LAST FRIDAY BROAD BASED INDEXES ALSO JUMPED TO NEW HIGHS WHILE ADVANCING ISSUES LED DECLINERS ONE THOUSAND THREE HUNDRED TWENTY NINE TO SEVEN HUNDRED EIGHTY FOUR ON THE NEW YORK STOCK EXCHANGE BIG BOARD VOLUME SWELLED TO ABOUT THREE HUNDRED FORTY SIX POINT THREE MILLION SHARES UP FROM THREE HUNDRED FOUR POINT SIX MILLION SHARES WEDNESDAY AND SET THE HIGHEST ONE DAY TALLY SINCE THREE HUNDRED SIXTY THREE POINT FOUR MILLION SHARES TRADED JANUARY SIXTH THE DOW JONES UTILITIES AVERAGE ROCKETED FOUR POINT ONE FIVE OR ONE POINT EIGHT SEVEN PERCENT TO TWO HUNDRED TWENTY FIVE POINT SIX ONE ITS LARGEST GAIN SINCE JANUARY SEVENTEENTH NINETEEN NINETY ONE WHEN IT ADVANCED THAT SAME AMOUNT IT HASN'T JUMPED MORE THAN THAT SINCE NINETEEN EIGHTY FOUR THE RALLY YESTERDAY HELPED ALLAY CONCERNS ABOUT RECENT LOSSES IN THAT AVERAGE WHICH MANY PEOPLE VIEW AS A LEADING INDICATOR FOR STOCKS AND BONDS THE THIRTY YEAR TREASURY BOND MEANWHILE RALLIED FIVE EIGHTHS POINT PUSHING ITS YIELD DOWN TO SIX POINT TWO SIX PERCENT THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX INCREASED THREE POINT EIGHT FIVE OR ZERO POINT EIGHT ONE PERCENT TO FOUR HUNDRED SEVENTY SEVEN POINT OH FIVE AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED TWO POINT ONE TWO OR ZERO POINT EIGHT ONE PERCENT TO TWO HUNDRED SIXTY FOUR POINT THREE EIGHT BOTH SETTING RECORDS THE NASDAQ COMPOSITE INDEX ADVANCED FOUR POINT OH EIGHT OR ZERO POINT FIVE TWO PERCENT TO SEVEN HUNDRED NINETY TWO POINT EIGHT EIGHT WHILE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADDED JUST ZERO POINT ONE TWO OR ZERO POINT ZERO TWO PERCENT TO FOUR HUNDRED EIGHTY ONE POINT EIGHT SIX BOTH ARE WELL WITHIN ONE PERCENT OF THEIR ALL TIME HIGHS THE DOW JONES INDUSTRIALS WOULD HAVE LEAPT EVEN FURTHER IF NOT FOR A STEEP SELL OFF IN SHARES OF MINNESOTA MINING AND MANUFACTURING THAT STOCK TUMBLED THREE AND THREE QUARTERS TO ONE HUNDRED SEVEN AND ONE QUARTER AND SLICED MORE THAN NINE POINTS OFF THE DOW THE COMPANY IN SAINT PAUL MINNESOTA REPORTED FOURTH QUARTER EARNINGS OF ONE DOLLAR AND THIRTY THREE CENTS A SHARE UP FROM ONE DOLLAR AND THIRTY TWO CENTS A SHARE A YEAR EARLIER BUT SHORT OF THE ONE DOLLAR AND THIRTY SIX CENTS MEAN ESTIMATE OF ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM SALOMON RALLIED TWO AND ONE QUARTER TO FORTY EIGHT AND ONE QUARTER AFTER THE NEW YORK SECURITIES FIRM SAID ITS FOURTHQUARTER EARNINGS SURGED TO FOUR DOLLARS AND THIRTY THREE CENTS A SHARE FROM ONE DOLLAR AND TEN CENTS A SHARE A YEAR AGO THE COMPANY POSTED A HUGE PROFIT FROM ITS PROPRIETARY TRADING OPERATIONS SARA LEE LOST ONE AND ONE HALF TO TWENTY THREE AND ONE HALF EVEN THOUGH THE CHICAGO FOOD CONCERN HAD A PROFIT OF FORTY EIGHT CENTS A SHARE IN THE SECOND QUARTER ENDED JANUARY FIRST UP FROM FORTY FOUR CENTS A SHARE A YEAR EARLIER AND IN LINE WITH ANALYSTS' EXPECTATIONS U. S. SURGICAL INCREASED TWO TO TWENTY NINE AND THREE QUARTERS A MOVE SOME ANALYSTS TIED TO SPECULATION THE NORWALK CONNECTICUT MEDICAL PRODUCTS COMPANY WILL WIN A PATENT INFRINGEMENT LAWSUIT AGAINST JOHNSON AND JOHNSON SHARES OF THE COMPANY IN NEW BRUNSWICK N. J. ADDED ONE HALF TO FORTY TWO AND THREE EIGHTHS AMERICAN DEPOSITARY RECEIPTS OF TELEFONOS DE MEXICO JUMPED TWO AND ONE HALF TO SEVENTY ONE AND THREE EIGHTHS THE STOCK HAD LOST GROUND EARLIER IN THE WEEK ON CONCERNS THAT IT COULD FACE COMPETITION IN COMING YEARS AFTER THE MEXICAN LONG DISTANCE TELEPHONE MARKET IS OPENED TO POTENTIAL RIVALS COMPANIA DE TELEFONOS DE CHILE'S A. D. R.S GAINED THREE AND ONE QUARTER TO ONE HUNDRED EIGHTEEN AND ONE HALF MORGAN STANLEY MADE POSITIVE COMMENTS ABOUT THE STOCK IN PART SAYING IT EXPECTS THE CHILEAN CONGRESS TO GIVE THE COMPANY PERMISSION TO EXPAND ITS OPERATIONS HEALTHSOURCE JUMPED TWO AND SEVEN EIGHTHS TO FIFTY SEVEN AND THREE EIGHTHS THE HEALTH MAINTENANCE ORGANIZATION MANAGER IN CONCORD N. H. DECLARED A TWO FOR ONE STOCK SPLIT PAYABLE MARCH FOURTEENTH TO HOLDERS OF RECORD FEBRUARY FOURTEENTH AN OFFERING OF FIFTEEN MILLION AMERICAN DEPOSITARY SHARES OF DAIMLER BENZ A. G. WAS PRICED AT FORTY SIX DOLLARS AND SEVENTY FIVE CENTS EACH THROUGH UNDERWRITERS LED BY C. J. LAWRENCE SLASH DEUTSCHE BANK MERRILL LYNCH AND GOLDMAN SACHS THE SHARES WERE SOLD BY DEUTSCHE BANK WHICH ANNOUNCED IN SEPTEMBER THAT IT PLANNED TO SELL QUOTE ROUGHLY QUOTE THREE PERCENT OF DAIMLER'S SHARE CAPITAL AFTER THE OCTOBER FIFTH LISTING OF DAIMLER SHARES DIAL INCREASED ONE AND ONE HALF TO FORTY THREE AFTER THE PERSONAL CARE PRODUCTS COMPANY IN PHOENIX REPORTED A FOURTH QUARTER PROFIT OF SIXTY SEVEN CENTS A SHARE A YEAR AGO IT HAD INCOME FROM CONTINUING OPERATIONS OF AROUND FIFTY CENTS COCA COLA EDGED UP THREE QUARTERS TO FORTY ONE AND THREE QUARTERS THE SOFT DRINK MAKER IN ATLANTA REPORTED THAT FOURTH QUARTER EARNINGS JUMPED TO THIRTY SIX CENTS A SHARE FROM THIRTY CENTS A SHARE A YEAR AGO MCDONALD'S GAINED FIVE EIGHTHS TO SIXTY FOURTH QUARTER EARNINGS AT THE FAST FOOD RESTAURANT COMPANY WERE SEVENTY TWO CENTS A SHARE UP FROM SIXTY ONE CENTS A SHARE A YEAR EARLIER MCDONALD'S SALES SURGED OVER SEVEN PERCENT TO SIX POINT ONE FIVE BILLION DOLLARS IN THE QUARTER INGERSOLL RAND THE MACHINERY SUPPLIER IN WOODCLIFF LAKE N. J. ROSE TWO AND ONE QUARTER TO THIRTY NINE AND ONE HALF ON UPBEAT EARNINGS NET INCOME WAS SIXTY FIVE CENTS A SHARE IN THE FOURTH QUARTER UP FROM THIRTY ONE CENTS A SHARE A YEAR EARLIER WHEN THE COMPANY RECORDED A SEVENTY MILLION DOLLAR RESTRUCTURING CHARGE ANALYSTS HAD BEEN PROJECTING INGERSOLL RAND'S EARNINGS AT FIFTY NINE CENTS A SHARE THE MARKET RIGHT NOW SEEMS TO BE RUNNING ON ALL CYLINDERS WE ARE SEEING REMARKABLE RESILIENCY EVEN AT THESE HIGH LEVELS SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH PRICES FELL MONDAY AND TUESDAY ON FEARS THAT STOCKS HAD RUN TOO FAR TOO FAST IN THE FIRST SEVERAL WEEKS OF THE YEAR MICHAEL METZ A MARKET STRATEGIST AT OPPENHEIMER AND COMPANY DOWNPLAYED THE SIGNIFICANCE OF THE RALLY ATTRIBUTING THE GAINS MORE TO SO CALLED MOMENTUM PLAYERS MAKING BETS ON THE SHORT TERM DIRECTION OF STOCKS RATHER THAN TO LONG TERM INVESTORS PLACING WAGERS BASED ON FUNDAMENTALS I THINK IT'S THE VERY LAST HURRAH BEFORE THE MARKET TURNS DOWN I WOULD SELL INTO STRENGTH RATHER THAN FOLLOW IT HE SAID REMEMBER THE GREAT NEW JERSEY G. O. P. VOTE SUPPRESSION STORY TO RECAP STATE AND FEDERAL OFFICIALS FOUND NO EVIDENCE THAT NEW JERSEY REPUBLICANS USED QUOTE STREET MONEY QUOTE TO SUPPRESS TURNOUT IN BLACK AREAS SUPPRESSING CHESHIRE GRINS THE G. O. P. LEGISLATURE PASSED A LAW REQUIRING ALL FUTURE STREET MONEY TO BE PAID BY CHECK NOT CASH SOMEHOW NOT ONE DEMOCRATIC LEGISLATOR VOTED FOR THE BILL WHICH OUTGOING GOVERNOR JIM FLORIO SIGNED INTO LAW ELECTION RECORDS NOW REVEAL WHO SPENT WHAT ON STREET MONEY NEW JERSEY DEMOCRATS HIRED TWENTY THOUSAND POLL WORKERS WITH FIVE HUNDRED NINETEEN THOUSAND DOLLARS IN UNTRACEABLE STREET MONEY OUTSPENDING REPUBLICANS BY MORE THAN TWELVE TIMES MEANWHILE THE VOTING FRAUD CASE IN NEXT DOOR PENNSYLVANIA ONLY GETS MEATIER DEMOCRATS THERE RETAINED CONTROL OF THE STATE SENATE BY WINNING A SQUEAKER ELECTION IN WHICH MORE THAN EIGHTY PERCENT OF ABSENTEE BALLOTS WENT FOR DEMOCRAT BILL STINSON BUT HUNDREDS OF PHILADELPHIA VOTERS NOW SAY THEY WERE MISLED INTO VOTING FOR HIM BY DEMOCRATIC WORKERS WHO WENT DOOR TO DOOR WITH ABSENTEE BALLOTS IN HAND NOW IT DEVELOPS THAT MR. STINSON UNLOCKED VOTING MACHINES AT HIS POLLING PLACE ON ELECTION DAY AND THEN OPENED AND COUNTED SEALED ABSENTEE BALLOTS THAT NIGHT HE SAYS HE WAS ONLY HELPING HIS MOTHER WHO HAPPENS TO BE THE LOCAL ELECTION JUDGE THE CITY'S DEPUTY SOLICITOR SAYS SENATOR STINSON IS CHARGEABLE FOR VIOLATING ELECTION LAWS THE PHILADELPHIA INQUIRER THINKS ALL THIS WOULD BE ENOUGH TO PROMPT SOME TO RESIGN IN SHAME BUT THE SENATOR IS HANGING TOUGH SO FAR THERE'S BEEN NO NATIONAL MEDIA INTEREST IN THIS SCANDAL WHICH UNLIKE NEW JERSEY'S TURNED OUT TO BE REAL SANFORD C. SIGOLOFF THE CORPORATE TURNAROUND SPECIALIST WHOSE NOMINATION AS CALIFORNIA SCHOOLS SUPERINTENDENT SURPRISED EDUCATION INTERESTS IN THE STATE WITHDREW AS A CANDIDATE FOR THE POST IN A LETTER TO CALIFORNIA GOVERNOR PETE WILSON YESTERDAY MR. SIGOLOFF CITED QUOTE PARTISAN POLITICS COMBINED WITH AN EDUCATIONAL ESTABLISHMENT RESISTANT TO CHANGE QUOTE IN HIS DECISION THE WITHDRAWAL CAME SHORTLY BEFORE SCHEDULED LEGISLATIVE CONFIRMATION HEARINGS IN WHICH MR. SIGOLOFF SIXTY THREE YEARS OLD WAS EXPECTED TO FACE HEATED EXAMINATION FROM LEGISLATORS ABOUT HIS APPARENT LACK OF EXPERIENCE IN EDUCATION AND HIS BUSINESS BACKGROUND GOVERNOR WILSON IN ACCEPTING THE WITHDRAWAL NOMINATED MR. SIGOLOFF TO A FOUR YEAR TERM ON THE ELEVEN MEMBER STATE BOARD OF EDUCATION WHERE MR. SIGOLOFF WILL AGAIN FACE A LEGISLATIVE CONFIRMATION PROCESS BUT LIKELY FAR LESS RESISTANCE THE BOARD SETS STATE EDUCATION POLICY AND CURRICULA MR. SIGOLOFF STYLED HIMSELF AS MING THE MERCILESS FOR HIS USE OF COST CUTTING TACTICS IN BRINGING WICKES COMPANIES AND OTHER COMPANIES THROUGH BANKRUPTCY PROCEEDINGS TEACHERS' UNIONS AND OTHER GROUPS WERE STRONGLY OPPOSED TO THE NOMINATION MR. SIGOLOFF HAD SAID HE PLANNED ONLY TO FILL OUT THE REMAINING TEN MONTH TERM IN THE EMPTY SCHOOLS SUPERINTENDENT POSITION FACTIONS JOCKEY IN THE WHITE HOUSE FOR CLINTON'S ATTENTION WITH NO ONE IN CHARGE OF COORDINATING THE OVERALL STRATEGY EACH ISSUE HAS ITS OWN CHAMPION BATTLING FOR TIME AMONG THE TOP AIDES STEPHANOPOULOS FOCUSES ON HEALTH GERGEN TAKES ON CRIME AND TO A RISING DEGREE WELFARE ENDLESS MEETINGS ARE UNDER WAY TO PARSE THE BEST QUOTE SEQUENCING QUOTE AND PRESIDENTIAL TIME ALLOCATION HEALTH CARE PEOPLE EXPECT THE PRESIDENT TO DO ONE OR TWO HEALTH EVENTS EACH WEEK THROUGH MARCH MRS. CLINTON ALSO WILL TRAVEL WIDELY TO STUMP FOR THE PLAN BUT THE PRESIDENT ALSO SHOWS A RISING INTEREST IN CRIME AS A POLITICAL ISSUE AND WITH THE ADDITIONAL NEED TO FASHION A WELFARE PROPOSAL STARTING NEXT MONTH EXPECT OTHER ISSUES MOST NOTABLY GORE'S REINVENTING GOVERNMENT INITIATIVE TO FALL FROM VIEW THE WHITE HOUSE ALSO WILL TREAD LIGHTLY ON FOREIGN AFFAIRS DUE IN PART TO THE DISARRAY IN THE FOREIGN POLICY TEAM CLINTON'S AGENDA POSES LOGISTICAL PROBLEMS FOR FINANCE AND TAX COMMITTEES AFTER PRESSURING CLINTON TO MOVE FASTER ON WELFARE SENATE FINANCE CHAIRMAN MOYNIHAN SCHEDULES HEALTH HEARINGS THAT COULD RUN INTO LATE APRIL DESPITE CLINTON'S PROMISE OF A WELFARE PROPOSAL THIS SPRING MOYNIHAN IS HUGELY SKEPTICAL THE ADMINISTRATION IS GOING TO SEND HIM A BILL SAYS G. O. P. SENATOR WALLOP MOYNIHAN HIMSELF PRIVATELY REMINDS MEMBERS OF GORE'S REMARK THAT SPRING TECHNICALLY RUNS TO MID JUNE MEANWHILE WITH HEALTH CARE FIRST PRIORITY FOR THE HOUSE LEADERSHIP THE WHITE HOUSE CONSIDERS PUSHING PORTIONS OF THE WELFARE BILL THROUGH THE PANELS THAT ACT EARLY ON HEALTH PARTICULARLY THE HOUSE LABOR COMMITTEE SUPPLY SIDERS SCRAMBLE TO EXPLAIN AWAY THE ECONOMY'S STRENGTH PREDICTIONS THAT CLINTON'S TAX INCREASES WOULD STRANGLE THE RECOVERY IN ITS CRADLE SEEM UNFOUNDED MAINSTREAM ECONOMISTS ISSUE INCREASINGLY OPTIMISTIC FORECASTS BUT SUPPLY SIDERS INSIST CLINTON HAS JUST BEEN LUCKY SO FAR AND THAT DOOM IS JUST AROUND THE CORNER PERHAPS AS SOON AS LATER THIS YEAR CLINTON'S TAX INCREASE IS A CORROSIVE LONGER TERM EFFECT ON INVESTMENT AND PRODUCTION SAYS FORMER REAGAN ECONOMIST LAWRENCE KUDLOW WE WILL SEE OVER TIME A WET BLANKET OVER THE SUPPLY SIDE OF THE ECONOMY THE HUDSON INSTITUTE'S ALAN REYNOLDS SAYS DECLINES IN LONG TERM INTEREST RATES ARE BUOYING THE ECONOMY BUT HE CREDITS WEAK ECONOMIES ABROAD NOT CLINTON'S DEFICIT REDUCTION EFFORT SUPPLY SIDE PROSELYTIZER JUDE WANNISKI HAS A NEW VILLAIN IF CLINTON'S TAX INCREASES DON'T CHOKE OFF GROWTH HE SAYS THE HEALTH PLAN WILL A. T. THE FED WHERE EVEN OFFHAND COMMENTS CAN MOVE MARKETS SOME OFFICIALS ARE EDGY BECAUSE LIKELY NOMINEE GEORGE PERRY'S WIFE DINA IS A PORTFOLIO MANAGER FOR THREE STOCK MUTUAL FUNDS EVEN SOME IN THE ADMINISTRATION ARE CONCERNED BUT THE WHITE HOUSE CONCLUDES THERE ARE NO LEGAL PROBLEMS AND PENDING AN INTERVIEW WITH CLINTON HIMSELF THE NOMINATION IS STILL ON TRACK NO CURRENT FED GOVERNOR HAS A WORKING SPOUSE CLINTON TRIES TO SOUND TIGHTFISTED WHILE ALSO TOUTING INCREASES FOR HIS INVESTMENTS AS BUDGET DAY NEARS LABOR SECRETARY REICH SAYS THE FEBRUARY SEVENTH BUDGET WILL PROPOSE SPENDING CUTS TO FINANCE CLINTON'S QUOTE RE EMPLOYMENT QUOTE TRAINING AND JOB SEARCH INITIATIVE WHEN FULLY PHASED IN IT WILL COST ABOUT THREE BILLION DOLLARS A YEAR ANOTHER BIG WINNER AID TO INNER CITY SCHOOLS SUPERFUND SNAG THE JUSTICE DEPARTMENT RAISES CONSTITUTIONAL OBJECTIONS TO CLEANUP ARBITRATION PROVISIONS IN THE ADMINISTRATION'S REWRITE OF THE NINETEEN EIGHTY TOXIC WASTE LAW BUT THE ADMINISTRATION STILL EXPECTS TO FINISH THE PROPOSAL WITHIN TWO WEEKS AND FOR FINE TUNING CONSULTS WITH G. E. ARCO AND THE AMERICAN INSURANCE ASSOCIATION CHINA HAND LOOK FOR DEFENSE SECRETARY DESIGNATE PERRY TO TAKE A BIGGER ROLE IN CHINA POLICY ONE POSSIBILITY A SINO AMERICAN COMMISSION ON DEFENSE CONVERSION THAT WOULD LEARN FROM THE CHINESE EXPERIENCE APPLY IT TO OTHER NATIONS AND GET A BETTER HANDLE ON THE INNER WORKINGS OF THE SEMIAUTONOMOUS CHINESE ARMS INDUSTRY REPUBLICANS FLINCH FROM A FIGHT OVER FINANCING EARTHQUAKE AID THOUGH SOME CONSERVATIVES WANT THE ADMINISTRATION TO COME UP WITH OFFSETTING BUDGET CUTS MOST REPUBLICANS DECIDE IT ISN'T WORTH THE POLITICAL TROUBLE TO FIGHT FOR THEM HOUSE G. O. P. LEADER BOB MICHEL HASN'T ENDORSED OFFSETTING CUTS AND SENATE REPUBLICANS HAVEN'T RALLIED BEHIND DOLE'S INITIAL NOISES IN THAT DIRECTION FINDING CUTS TO OFFSET SEVEN BILLION DOLLARS IN EARTHQUAKE AID WITH JUST EIGHT MONTHS LEFT IN THE FISCAL YEAR WOULD BE A PAINFUL PROCESS BEYOND THAT WITH A SHAKY GOVERNOR WILSON SEEKING RE ELECTION AND REPRESENTATIVE HUFFINGTON CHALLENGING SENATOR FEINSTEIN REPUBLICANS CAN'T AFFORD TO BE SEEN AS AN OBSTACLE TO RELIEF ONE OBJECT LESSON IOWA G. O. P. REPRESENTATIVE NUSSLE WHO PUSHED FOR CUTS TO OFFSET MIDWEST FLOOD AID NOW APPEARS TO BE IN DEEP POLITICAL TROUBLE BACK HOME MINOR MEMOS BUT SERIOUSLY FOLKS THE PENTAGON ANNOUNCES A NEW LINE OF SHIPS THE BOB HOPE CLASS LINE OF MEDIUM SPEED NAVY CARGO VESSELS I'VE BEEN DISAPPOINTED IN THE NUMBER OF DISASTERS OVER THE LAST FEW YEARS FRANKLY WHITE HOUSE BUDGET DIRECTOR PANETTA SAYS RUMORS OF A PENDING BENTSEN SPEECH ON THE YEN SEND CURRENCY TRADERS INTO A FRENZY BUT THE SPEAKER TURNS OUT TO BE FRED BERGSTEN OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS SMITH INTERNATIONAL INCORPORATED SAID IT AGREED IN PRINCIPLE TO BUY DRESSER INDUSTRIES INCORPORATED'S INTEREST IN A DRILLING FLUIDS COMPANY FOR ONE HUNDRED SIXTY MILLION DOLLARS SMITH SAID IN HOUSTON THAT THE AGREEMENT CALLS FOR IT TO ACQUIRE DRESSER'S SIXTY FOUR PERCENT INTEREST IN M. I DRILLING FLUIDS COMPANY THE REMAINING THIRTY SIX PERCENT OF M. I IS OWNED BY HALLIBURTON COMPANY SMITH SAID THAT FOR THE FISCAL YEAR ENDED OCTOBER THIRTY FIRST THE DRILLING FLUIDS COMPANY GENERATED REVENUE OF THREE HUNDRED NINETY EIGHT POINT FOUR MILLION DOLLARS THE ACQUISITION WILL BE FINANCED FROM CASH AND BORROWINGS THE TRANSACTION IS EXPECTED TO CLOSE ON FEBRUARY TWENTY EIGHTH ITS COMPLETION IS SUBJECT TO NEGOTIATION OF A DEFINITIVE AGREEMENT TO APPROVAL OF SMITH'S AND DRESSER'S BOARDS AND TO CERTAIN FEDERAL REGULATORY APPROVALS STOCK MUTUAL FUNDS PULLED IN A RECORD FOURTEEN POINT FIVE BILLION DOLLARS FROM INVESTORS IN DECEMBER AND FUND EXECUTIVES SAY JANUARY'S INFLOWS MAY SOAR EVEN HIGHER STOCK FUNDS ATTRACTED A RECORD ONE HUNDRED TWENTY EIGHT BILLION DOLLARS IN NINETEEN NINETY THREE FAR ABOVE THE PRIOR HIGH OF SEVENTY EIGHT BILLION DOLLARS AND AT YEAR END ASSETS OF ALL MUTUAL FUNDS INCLUDING STOCK BOND AND MONEY MARKET FUNDS TOPPED TWO TRILLION DOLLARS FOR THE FIRST TIME MCDONNELL DOUGLAS WON A TWO BILLION DOLLAR CONTRACT TO SELL TWENTY OF ITS F. FIFTEEN JETS TO ISRAEL BEATING OUT ITS RIVAL LOCKHEED ORDERS FOR DURABLE GOODS ROSE EIGHT POINT SIX PERCENT IN NINETEEN NINETY THREE THEIR STRONGEST INCREASE IN FIVE YEARS IN DECEMBER DURABLE GOODS ORDERS GREW TWO POINT TWO PERCENT ECONOMISTS WERE PARTICULARLY ENCOURAGED THAT DESPITE CONTINUAL CUTBACKS IN DEFENSE SPENDING OVERALL ORDERS WERE STILL STRONG THE WHITE HOUSE IS SEEKING TO KILL THE TARGETED JOBS TAX CREDIT A ROUGHLY TWO HUNDRED SEVENTY THREE MILLION DOLLAR ANNUAL TAX BREAK USED LARGELY BY THE RETAILING AND HOTEL INDUSTRIES IT ALSO IS CONSIDERING REPLACING THE FEDERAL EMERGENCY JOBLESS BENEFITS PROGRAM WITH A PLAN THAT WOULD REQUIRE A SUBSTANTIAL STATE ROLE A. T. AND T. POSTED A TWO PERCENT DECLINE IN FOURTH QUARTER PROFIT DUE TO ONE TIME CHARGES BUT ACROSS THE BOARD GROWTH GENERATED STRONG REVENUE ITS N. C. R. COMPUTER UNIT REBOUNDED IN THE QUARTER WITH A TWENTY ONE PERCENT GAIN IN EQUIPMENT SALES M. C. I. COMMUNICATIONS REPORTED A THIRTY THREE PERCENT DECLINE IN FOURTH QUARTER PROFIT HURT BY A RESTRUCTURING CHARGE SARA LEE POSTED DISAPPOINTING FISCAL SECOND QUARTER RESULTS AND EXPECTS FLAT EARNINGS FOR THE CURRENT QUARTER APPLE SAID FOR THE FIRST TIME THAT IT WANTS OTHER MANUFACTURERS TO BUILD P. C.S THAT RUN ITS MACINTOSH SOFTWARE INTEL PROMISED TO SHIP ITS NEXT GENERATION MICROCHIP IN NINETEEN NINETY FIVE AND SAID IT WILL BOOST SPENDING ON NEW FACTORY CAPACITY THIS YEAR BY TWENTY SIX PERCENT TO TWO POINT FOUR BILLION DOLLARS U. A. L. SAID ITS FOURTH QUARTER LOSS NARROWED SUBSTANTIALLY AND THAT ITS TWO BIGGEST UNIONS APPROVED A PLAN FOR EMPLOYEES TO BUY A MAJORITY STAKE DELTA AIR'S LOSS NARROWED FOR THE LATEST QUARTER AND AMERICA WEST HAD A PROFIT COMPARED WITH A YEAR AGO LOSS R. H. MACY IS DISMISSING AT LEAST FOUR HUNDRED FIFTEEN EXECUTIVES AND STAFF EMPLOYEES AT ITS MACY'S WEST DIVISION TO CUT COSTS PRUDENTIAL SECURITIES SET ASIDE MORE THAN FOUR HUNDRED THIRTY MILLION DOLLARS IN RESERVES IN NINETEEN NINETY THREE FOR LIMITED PARTNERSHIP LEGAL CLAIMS NEARLY FOUR TIMES WHAT THE BIG BROKERAGE FIRM PREDICTED A YEAR AGO THE CONGRESSIONAL BUDGET OFFICE SHARPLY CUT ITS ESTIMATE OF THE FEDERAL BUDGET DEFICIT TO ONE HUNDRED SEVENTY ONE BILLION DOLLARS IN NINETEEN NINETY FIVE P. AND G. POSTED A THIRTEEN PERCENT PROFIT GAIN FOR ITS SECOND QUARTER DESPITE LOWER SALES AND TROUBLE AT ITS DIAPER AND FOOD UNITS COCA COLA'S FOURTH QUARTER PROFIT INCREASED NINETEEN PERCENT BOLSTERED BY SOLID VOLUME GROWTH IN OVERSEAS MARKETS FEDERATED IS EXPECTED TO NAME HAROLD KAHN A FORMER TOP MACY EXECUTIVE HEAD OF ITS LARGEST DIVISION STOCK PRICES HIT RECORDS AS INTEREST RATES FELL THE DOW JONES INDUSTRIALS GAINED EIGHTEEN POINT THREE OH TO THREE THOUSAND NINE HUNDRED TWENTY SIX POINT THREE OH THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE ADDED FIVE EIGHTHS POINT AND ITS YIELD FELL TO SIX POINT TWO SIX PERCENT BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND SIX HUNDRED TWENTY SIX POINT SEVEN SEVEN UP THIRTY POINT TWO TWO COMMODITIES OIL FIFTEEN DOLLARS AND FORTY TWO CENTS A BARREL OFF FIVE CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY ONE POINT FIVE ONE OFF ZERO POINT FOUR EIGHT SPOT INDEX ONE HUNDRED TWENTY NINE POINT SEVEN ONE UP ZERO POINT TWO ZERO DOLLAR ONE HUNDRED EIGHT POINT FIVE FIVE YEN OFF ONE POINT FIVE OH ONE POINT SEVEN TWO NINE FIVE MARKS OFF ZERO POINT ZERO ONE FIVE FIVE CARDINAL DISTRIBUTION INCORPORATED DUBLIN OHIO SAID ITS SHAREHOLDERS AND THOSE OF WHITMIRE DISTRIBUTION CORPORATION APPROVED CARDINAL'S ACQUISITION OF WHITMIRE THE COMBINED COMPANY WILL BE THE NATION'S THIRD LARGEST DISTRIBUTOR OF PHARMACEUTICAL PRODUCTS WITH ESTIMATED NINETEEN NINETY FOUR SALES OF ABOUT SIX BILLION DOLLARS CLOSELY HELD WHITMIRE OF FOLSOM CALIFORNIA IS OWNED BY MANAGEMENT APOLLO INVESTMENT FUND L. P. AND CHEMICAL VENTURE PARTNERS A UNIT OF CHEMICAL BANKING CORPORATION CARDINAL SAID ITS HOLDERS ALSO APPROVED A NAME CHANGE TO CARDINAL HEALTH INCORPORATED ISSUANCE OF CLASS B. COMMON SHARES FOR THE MERGER EXPANSION OF THE BOARD TO FOURTEEN FROM TEN AND AN INCREASE TO SIXTY MILLION AUTHORIZED SHARES FROM FORTY MILLION THREE OF THE FOUR NEW BOARD SEATS WILL BE FILLED BY WHITMIRE NOMINEES WHITMIRE'S CHAIRMAN AND CHIEF EXECUTIVE MELBURN G. WHITMIRE FIFTY FOUR YEARS OLD WHO WILL BE VICE CHAIRMAN OF CARDINAL WHITMIRE DIRECTOR MICHAEL S. GROSS THIRTY TWO WHO IS A VICE PRESIDENT OF APOLLO CAPITAL MANAGEMENT INCORPORATED AND MITCHELL J. BLUTT M. D. THIRTY SIX AN EXECUTIVE PARTNER OF CHEMICAL VENTURE PARTNERS THE FOURTH NEW DIRECTOR IS CARDINAL NOMINEE JOHN F. FINN FORTY SIX CHAIRMAN AND CHIEF EXECUTIVE OF GARDNER INCORPORATED INLAND STEEL INDUSTRIES INCORPORATED SAID IT REACHED AN AGREEMENT WITH GENERAL ELECTRIC CAPITAL CORPORATION TO PURCHASE THAT COMPANY'S EQUITY INTEREST IN THE CASTER FACILITY THAT ITS INLAND STEEL COMPANY UNIT NOW LEASES FROM THE GENERAL ELECTRIC COMPANY UNIT THE STEEL HOLDING COMPANY SAID THE INTEREST WILL BE PURCHASED FOR EIGHTY THREE MILLION DOLLARS USING PART OF THE PROCEEDS RECEIVED FROM THE COMPANY'S COMMON STOCK OFFERING LAST MONTH THE CASTER FACILITY WHICH THE COMPANY HAS LEASED SINCE NINETEEN EIGHTY FIVE IS PART OF INLAND STEEL'S PLANT IN EAST CHICAGO INDIANA INLAND STEEL SAID THE PURCHASE QUOTE IS CONSISTENT WITH THE COMPANY'S OVERALL EFFORT TO REDUCE ITS FIXED CHARGES QUOTE INLAND STEEL IS ALSO THE PARENT OF INLAND MATERIALS DISTRIBUTION GROUP INCORPORATED WHICH OPERATES A STEEL SERVICE CENTER THE SENATE VOTE THIS WEEK TO LIFT THE EMBARGO ON VIETNAM RECOGNIZES THE TREMENDOUS POTENTIAL FOR TRADE WITH OUR FORMER ENEMY AND THE ENTIRE REGION AMERICANS ARE JUST BEGINNING TO AWAKEN TO THE FACT THAT TWO WAY TRADE WITH THE ASIAN PACIFIC RIM ALREADY EXCEEDS OUR COMMERCE WITH THE EUROPEAN UNION OR A COMBINATION OF OUR NORTH AND SOUTH AMERICAN NEIGHBORS THIS POTENTIAL FOR INCREASED TRADE AND MORE U. S. JOBS SPRINGS FROM THE FACT THAT CAPITALISM IS ON THE MARCH IN ASIA IF ADAM SMITH AND KARL MARX COULD VISIT BEIJING AND HANOI TODAY THEY WOULD BE SHOCKED TO SEE COUNTRIES LIKE CHINA AND COMMUNIST VIETNAM SPRINTING TOWARD CAPITALISM OFFICIALLY THEY CALL IT A QUOTE SOCIALIST MARKET ECONOMY QUOTE AN OXYMORON THAT MAY BE THE PRACTICAL ANSWER FOR COUNTRIES NOT WANTING TO ADMIT THEIR WISH TO ABANDON THE DISADVANTAGES OF A PLANNED ECONOMY FOR THE REWARDS OF INDIVIDUAL INITIATIVE ON THE SAME DAY IN EARLY JANUARY WHEN OUR DELEGATION OF SEVEN U. S. SENATORS HEARD CHINA'S PREMIER LI PENG IN BEIJING EXTOL THE THEORETICAL VIRTUES OF SOCIALISM THE VICE CHAIRMAN OF THE NATIONAL PEOPLE'S CONGRESS ANNOUNCED PLANS TO COPY ECONOMIC LEGISLATION FROM CAPITALIST COUNTRIES OUR DELEGATION HEARD A SIMILAR MESSAGE ON OUR VISIT TO HANOI A YOUNG OFFICIAL FROM THE VIETNAM MINISTRY OF TRADE WAS SUCCINCT IN STATING THAT THE PRIVATE SECTOR WAS MORE EFFECTIVE THAN STATE OWNERSHIP BECAUSE PEOPLE WORK HARDER FOR THEIR OWN POCKETS LOOKING TO WESTERN POLITICAL IDEOLOGY VIETNAM'S MOST POWERFUL POLITICAL FIGURE SECRETARY GENERAL MOY OF THE COMMUNIST PARTY CLAIMED THAT HIS COUNTRY SOUGHT TO FOLLOW ABRAHAM LINCOLN'S MODEL OF A GOVERNMENT OF THE PEOPLE BY THE PEOPLE AND FOR THE PEOPLE STATISTICS SHOW CHINA'S GROSS NATIONAL PRODUCT GROWING AT ABOUT TEN PERCENT A YEAR LI PENG BOASTED OF A TRILLION DOLLAR CHINESE MARKET IN URGING OUR DELEGATION TO RENEW MOST FAVORED NATION STATUS FOR CHINA SIMILARLY IN THAILAND INDONESIA AND VIETNAM WE HEARD OF MULTIBILLION DOLLAR U. S. OPPORTUNITIES IN HYDROPOWER TELECOMMUNICATIONS AIR AND RAIL TRANSPORT AUTOMOBILES AND ENVIRONMENTAL PROJECTS IN ALL THESE COUNTRIES U. S. BUSINESSMEN URGED OUR DELEGATION TO DELINK TRADE INTERESTS FROM HUMAN RIGHTS AND EVEN THE M. I. A. ISSUE FRANK HAWKE REPRESENTING CITIBANK'S GLOBAL FINANCE OPERATION IN ASIA NOTED THAT ABOUT HALF OF HIS COMPANY'S TWO BILLION DOLLAR ANNUAL PROFITS CAME FROM DEVELOPING COUNTRIES MEMBERS OF THE AMERICAN CHAMBER OF COMMERCE IN BEIJING CHIDED OUR POLICY OF LECTURING CHINA ON HUMAN RIGHTS WHEN TWENTY THREE THOUSAND PEOPLE WERE MURDERED ANNUALLY IN THE U. S. AND OUR CITIES WERE VIRTUAL WAR ZONES WHEN WE OBJECTED TO CHINA'S MISSILE SALES LI PENG CHASTISED US FOR BEING THE WORLD'S NUMBER ONE BIG BROTHER IN ARMS SALES INDONESIAN OFFICIALS EXPRESSED CONCERN ABOUT THE CONTINUATION OF THEIR TRADE PRIVILEGES WHEN OUR DELEGATION RAISED THE ISSUE OF HUMAN RIGHTS IN EAST TIMOR AND LABOR CONDITIONS GENERALLY THOSE PROTESTS SUGGEST THAT OUR CONDITIONS FOR TRADE PREFERENCES ARE HAVING AN EFFECT ACCESS TO OUR MARKETS AT REDUCED TARIFF RATES IS VITAL TO BEIJING'S AND JAKARTA'S TRADE SO WE SHOULD CONTINUE OUR LEVERAGE ON HUMAN RIGHTS AND ARMS SALES WITHOUT BREAKING THE LEVER IT IS OBVIOUSLY A JUDGMENT CALL AS TO HOW HARD TO PRESS BUT THERE IS MUCH ROOM FOR IMPROVEMENT AND WE ARE HAVING SIGNIFICANT SUCCESS AS EVIDENCED BY CHINA'S RECENT CONCESSION TO ALLOW GREATER INSPECTION OF MANUFACTURING IN THEIR PRISONS REGRETTABLY A TOUGH TRADE POLICY AND SANCTIONS ALSO SEEM NECESSARY TO ENFORCE U. S. PROPERTY RIGHTS CHINA HAS FLOODED OUR MARKETS WITH ILLEGAL TEXTILE TRANS SHIPMENTS AFTER CUTTING THEIR IMPORT QUOTAS WE HAVE FINALLY EXTRACTED COMMITMENTS FROM CHINA TO STOP THE ILLEGAL TRANS SHIPMENTS OF TEXTILES BUT THAT WILL HAVE TO BE MONITORED CLOSELY TO ENSURE COMPLIANCE RESPONDING TO LONGSTANDING U. S. COMPLAINTS THAILAND IS FINALLY ENACTING TOUGH LEGISLATION AND ESTABLISHING A SPECIAL COURT FOR ENFORCING INTELLECTUAL PROPERTY RIGHTS SIMILARLY INDONESIA NEEDS CONTINUING PRESSURE AND MONITORING TO FULFILL EXISTING PROMISES TO RESPECT U. S. COPYRIGHTS NOTWITHSTANDING THE PROBLEMS THE BIG PICTURE SUGGESTS ENORMOUS U. S. OPPORTUNITIES IN THE PACIFIC RIM CHINA'S DEPUTY POWER BUREAU DIRECTOR YU FOMIN WAS OUTSPOKEN IN HIS PREFERENCE FOR U. S. PRODUCTS OVER THOSE OF FRANCE AND OTHER COMPETITORS WITHIN THE NEXT DECADE INDONESIA WILL PROVIDE A MARKET FOR INFRASTRUCTURE DEVELOPMENT IN EXCESS OF ONE HUNDRED BILLION DOLLARS THE POTENTIAL FOR U. S. BUSINESS DEVELOPMENT IN INDONESIA IS ILLUSTRATED BY A MULTIBILLION DOLLAR COPPER GOLD MINE BEING DEVELOPED BY FREEPORT MCMORAN INCORPORATED IN TIMIKA IN EAST INDONESIA IN THE PAST FIVE YEARS THAT TALENTED AND AMBITIOUS U. S. COMPANY HAS DEVELOPED THE WORLD'S THIRD LARGEST COPPER MINE CREATING THOUSANDS OF NEW JOBS THERE AND IN THE U. S. THE PROBLEMS OF BALANCING COMPETING INTERESTS IN ECONOMIC DEVELOPMENT WERE KEPT IN PERSPECTIVE WHEN WE TALKED TO THAILAND'S KING PHUMIPHON WHO TOLD US THAT HIS FAVORITE HYDRO DAM PROJECT WAS DEFERRED BECAUSE OF COMMUNITY PROTESTS WE UNDERSTOOD CONSTITUENT PRESSURES ON U. S. SENATORS BUT WE ASKED WHY THAT WOULD AFFECT A MONARCH THE KING RESPONDED THEY'D DEMONSTRATE MR. SPECTER A REPUBLICAN IS THE SENIOR SENATOR FROM PENNSYLVANIA QUOTE WE MEET IN THE MIDST OF A NATION BROUGHT TO THE VERGE OF MORAL POLITICAL AND MATERIAL RUIN THE FRUITS OF THE TOIL OF MILLIONS ARE BOLDLY STOLEN TO BUILD UP COLOSSAL FORTUNES FOR THE FEW UNPRECEDENTED IN THE HISTORY OF MANKIND AND THE POSSESSORS OF THESE IN TURN DESPISE THE REPUBLIC AND ENDANGER LIBERTY FROM THE SAME PROLIFIC WOMB OF GOVERNMENT INJUSTICE ARE BRED TWO GREAT CLASSES OF TRAMPS AND MILLIONAIRES THIS QUOTE COULD HAVE BEEN LIFTED FROM YET ANOTHER TELEVISION DRAMA DISPARAGING THE BOOM YEARS OF THE NINETEEN EIGHTIES IN FACT IT COMES FROM THE POPULIST PARTY PLATFORM ADOPTED AT THE PARTY'S FIRST CONVENTION IN OMAHA NEBRASKA ON JULY FOURTH ONE THOUSAND EIGHT HUNDRED NINETY TWO JUST AS THE TAKEOVER SPECIALISTS OF THE NINETEEN EIGHTIES HAVE BEEN CONDEMNED BY MANAGERS POLICY MAKERS AND THE PRESS THE SO CALLED ROBBER BARONS OF THE NINETEENTH CENTURY WERE SIMILARLY VILIFIED BUT LIKE THEIR POPULIST PREDECESSORS THE ANTIGREED PUNDITS OF THE NINETEEN NINETIES HAVE MISSED A FAR LARGER PHENOMENON WE ARE TODAY IN THE MIDST OF A THIRD INDUSTRIAL REVOLUTION COMPARABLE IN SCOPE TO THE PREVIOUS TWO THE FIRST HAVING OCCURRED IN ENGLAND FROM THE LATE EIGHTEENTH THROUGH THE EARLY NINETEENTH CENTURIES AND THE SECOND TAKING PLACE PRIMARILY IN THE U. S. FROM THE MID TO THE LATE NINETEENTH CENTURY REVOLUTIONS SUCH AS THESE LEAD TO STEADILY RISING PRODUCTIVITY DRAMATIC REDUCTIONS IN LABOR COSTS AND SIGNIFICANT INCREASES IN LIVING STANDARDS MANY INDUSTRIES EXPERIENCE SUBSTANTIAL EXCESS CAPACITY AS FUNDAMENTAL TECHNOLOGICAL POLITICAL REGULATORY AND ECONOMIC FORCES RADICALLY CHANGE THE GLOBAL COMPETITIVE ENVIRONMENT THE MERGER BOOMS OF THE ONE THOUSAND EIGHT HUNDRED NINETIES AND THE NINETEEN EIGHTIES PLAYED A MAJOR ROLE IN HELPING INDUSTRIES RESTRUCTURE THUS SPEEDING THE ADJUSTMENT TO THE NEW BUSINESS ENVIRONMENT WHILE THESE REVOLUTIONS BROUGHT PROSPERITY THE LARGE COSTS ASSOCIATED WITH THE OBSOLESCENCE OF HUMAN AND PHYSICAL CAPITAL IN CERTAIN INDUSTRIES GENERATED SUBSTANTIAL HARDSHIP MISUNDERSTANDING AND BITTERNESS IN BOTH THE NINETEENTH AND TWENTIETH CENTURIES CRITICISM ON THE PART OF THOSE WHO COULD NOT OR WOULD NOT ADJUST TO MODERNIZATION WAS FOLLOWED BY PUBLIC POLICY CHANGES THAT RESTRICTED THE CAPITAL MARKETS IN THE NINETEENTH CENTURY THROUGH THE PASSAGE OF ANTITRUST LAWS RESTRICTING COMBINATIONS IN THE LATE NINETEEN EIGHTIES WITH THE RE REGULATION OF THE CREDIT MARKETS ANTITAKEOVER LEGISLATION AND RESTRICTIVE COURT DECISIONS THESE RESTRICTIONS WERE BASED ON SPECIOUS CLAIMS ABOUT ECONOMIC DECLINE THAT ARE IN COMPLETE CONFLICT WITH THE DATA NOW AVAILABLE THE MACROECONOMIC DATA FOR THE NINETEEN EIGHTIES SHOW PRODUCTIVITY GAINS THAT IN MANY WAYS PARALLEL THOSE OF THE NINETEENTH CENTURY THE WATERSHED YEAR WAS NINETEEN EIGHTY ONE TOTAL PRODUCTIVITY GROWTH IN THE MANUFACTURING SECTOR MORE THAN DOUBLED AFTER NINETEEN EIGHTY ONE TO THREE POINT THREE PERCENT A YEAR IN THE NINETEEN EIGHTY ONE TO NINETY PERIOD FROM ONE POINT FOUR PERCENT A YEAR IN THE NINETEEN FIFTY TO EIGHTY ONE PERIOD NOMINAL UNIT LABOR COSTS STOPPED THEIR SEVENTEEN YEAR RISE AND REAL UNIT LABOR COSTS DECLINED TWENTY FIVE PERCENT THESE LOWER LABOR COSTS CAME NOT FROM REDUCED WAGES OR EMPLOYMENT BUT FROM INCREASED PRODUCTIVITY NOMINAL AND REAL HOURLY COMPENSATION INCREASED BY A TOTAL OF FOUR POINT TWO PERCENT AND ZERO POINT THREE PERCENT A YEAR RESPECTIVELY OVER THE NINETEEN EIGHTY ONE TO EIGHTY NINE PERIOD MANUFACTURING EMPLOYMENT REACHED A LOW IN NINETEEN EIGHTY THREE BUT BY NINETEEN EIGHTY NINE IT HAD EXPERIENCED A SMALL CUMULATIVE INCREASE OF FIVE POINT FIVE PERCENT MEANWHILE THE ANNUAL GROWTH IN LABOR PRODUCTIVITY INCREASED TO THREE POINT EIGHT PERCENT BETWEEN NINETEEN EIGHTY ONE AND NINETEEN NINETY FROM TWO POINT THREE PERCENT BETWEEN NINETEEN FIFTY AND NINETEEN EIGHTY ONE A THIRTY YEAR DECLINE IN CAPITAL PRODUCTIVITY WAS REVERSED WHEN THE ANNUAL CHANGE IN THE PRODUCTIVITY OF CAPITAL INCREASED TO TWO POINT OH THREE PERCENT BETWEEN NINETEEN EIGHTY ONE AND NINETEEN NINETY FROM A NEGATIVE ONE POINT OH THREE PERCENT BETWEEN NINETEEN FIFTY AND NINETEEN EIGHTY ONE DURING THE NINETEEN EIGHTIES THE REAL VALUE OF PUBLIC FIRMS' EQUITY MORE THAN DOUBLED TO THREE TRILLION DOLLARS FROM ONE POINT FOUR TRILLION DOLLARS IN ADDITION REAL MEDIAN INCOME INCREASED AT THE RATE OF ONE POINT EIGHT PERCENT A YEAR BETWEEN NINETEEN EIGHTY TWO AND NINETEEN EIGHTY NINE REVERSING THE ONE PERCENT A YEAR DECREASE THAT OCCURRED FROM NINETEEN SEVENTY THREE TO NINETEEN EIGHTY TWO THESE GAINS IN PRODUCTIVITY EFFICIENCY AND WELFARE HAVE BEEN IGNORED BY THOSE POLITICIANS AND MEDIA PUNDITS WHO CONTINUE TO CHARACTERIZE THE NINETEEN EIGHTIES AS A DECADE OF GREED AND EXCESS PARTICULAR LOATHING IS EXPRESSED FOR MERGERS AND ACQUISITIONS TRANSACTIONS THIRTY FIVE THOUSAND OF WHICH OCCURRED FROM NINETEEN SEVENTY SIX TO NINETEEN NINETY WITH A TOTAL VALUE OF TWO POINT SIX TRILLION DOLLARS THE ATTACK ON M. AND A TRANSACTIONS HAS BEEN CENTERED ON THE HIGH YIELD OR JUNK BOND MARKET HOWEVER HERE AGAIN THE ATTACKS ON CAPITAL MARKET INSTRUMENTS WERE ILL INFORMED WHAT HAS BEEN MISSED HERE IS THE ENORMOUSLY PRODUCTIVE IMPACT THAT HIGH YIELD BONDS HAD IN OPENING THE MANAGEMENT OF AMERICA'S LARGEST CORPORATIONS TO MONITORING AND DISCIPLINE FROM THE CAPITAL MARKETS THEY ALSO HELPED PROVIDE CAPITAL FOR NEWCOMERS TO COMPETE WITH EXISTING FIRMS IN THE PRODUCT MARKETS HIGH YIELD BONDS OPENED THE PUBLIC CAPITAL MARKETS TO SMALL RISKY AND UNRATED FIRMS ACROSS THE COUNTRY AND MADE IT POSSIBLE FOR SOME OF THE COUNTRY'S LARGEST FIRMS TO BE TAKEN OVER CAPITAL MARKET PRESSURES SUCH AS THESE WHILE NOT PERFECT CAN SIGNIFICANTLY INCREASE EFFICIENCY BY BRINGING ABOUT EARLIER ADJUSTMENTS AND AVOIDING MUCH OF THE WASTE GENERATED WHEN FAILURE IN THE PRODUCT MARKETS FORCES DOWNSIZING AND EXIT BY EXIT WE MEAN AN INDUSTRY SHUTTING DOWN ITS LEAST EFFICIENT FACILITIES TO REDUCE EXCESS CAPACITY IN INDUSTRY AFTER INDUSTRY WITH EXCESS CAPACITY MANAGERS FAIL TO RECOGNIZE THAT THEY THEMSELVES MUST DOWNSIZE FOR EXAMPLE WIDESPREAD CONSUMER ACCEPTANCE OF RADIAL TIRES MEANT THAT WORLD WIDE TIRE CAPACITY HAD TO SHRINK BY ABOUT SIXTY SIX PERCENT BECAUSE RADIALS LAST THREE TO FIVE TIMES LONGER THAN BIAS PLY TIRES INSTEAD COMPANIES LIKE GENCORP MAKER OF GENERAL TIRES DRAMATICALLY INCREASED INVESTMENT IN R. AND D. AND MARKETING FOR THEIR TIRE BUSINESS MANAGERS' ATTITUDES IN SUCH SITUATIONS WERE FREQUENTLY EQUIVALENT TO THIS IS A VERY TOUGH BUSINESS WE HAVE TO MAKE MAJOR INVESTMENTS SO THAT WE WILL HAVE A CHAIR WHEN THE MUSIC STOPS QUOTE INCREASED INVESTMENT IS HARDLY A SOCIALLY OPTIMAL RESPONSE FOR MANAGERS IN A DECLINING INDUSTRY WITH EXCESS CAPACITY EVEN WHEN MANAGERS DO ACKNOWLEDGE THE REQUIREMENT FOR EXIT IT IS OFTEN DIFFICULT FOR THEM TO INITIATE THE SHUTDOWN FOR MANAGERS IMPLEMENTING THESE DECISIONS SHUTTING PLANTS OR LIQUIDATING THE FIRM CAUSES PERSONAL PAIN CREATES UNCERTAINTY AND INTERRUPTS OR SIDETRACKS CAREERS RATHER THAN CONFRONTING THIS PAIN MANAGERS GENERALLY RESIST SUCH ACTIONS AS LONG AS THEY HAVE THE CASH FLOW TO SUBSIDIZE THE LOSING OPERATIONS INDEED FIRMS WITH LARGE POSITIVE CASH FLOW WILL OFTEN INVEST IN EVEN MORE MONEY LOSING SITUATIONS PROVIDING DRAMATIC EVIDENCE OF THE FAILURE OF CORPORATE INTERNAL CONTROL SYSTEMS HEADED BY BOARDS OF DIRECTORS THIS IS PRECISELY WHERE THE FORCES OF THE CAPITAL MARKETS THE L. B. O.S LEVERAGED RESTRUCTURINGS TAKEOVERS AND VENTURE CAPITAL FIRMS DID SO MUCH TO RATIONALIZE INVESTMENT AND MANAGEMENT DECISIONS IN THE NINETEEN EIGHTIES IN FACT THE RESTRUCTURING STRATEGIES OF L. B. O. ASSOCIATIONS AND VENTURE CAPITAL FUNDS PROVIDE A BLUEPRINT FOR MANAGERS AND BOARDS WHO WISH TO MAKE THEIR TOP LEVEL CONTROL SYSTEMS MORE EFFICIENT BOTH GOVERNANCE SYSTEMS ARE CHARACTERIZED BY C. E. O.S WHO ARE SELDOM THE CHAIRMAN OF THE BOARD THUS INCREASING THE FLEXIBILITY OF A BOARD TO HANDLE AN INEFFICIENT C. E. O. FINALLY THE CLOSE RELATIONSHIP BETWEEN THE L. B. O. PARTNERS OR VENTURE FUND PARTNERS AND THE OPERATING COMPANIES FACILITATES THE INFUSION OF EXPERTISE FROM THE BOARD DURING TIMES OF CRISIS IT IS NOT UNUSUAL FOR A PARTNER TO JOIN THE MANAGEMENT TEAM EVEN AS C. E. O. TO HELP AN ORGANIZATION THROUGH SUCH EMERGENCIES VERY IMPORTANTLY THERE ARE MARKET FORCES THAT OPERATE TO LIMIT THE HUMAN TENDENCY TO MICROMANAGE AND THEREBY OVER CENTRALIZE MANAGEMENT IN THE HEADQUARTERS STAFF THE ERA OF THE KIND OF MARKET ENFORCED MANAGEMENT DISCIPLINE DESCRIBED ABOVE REFERRED TO AS THE CONTROL MARKET CAME TO AN END IN LATE NINETEEN EIGHTY NINE AND NINETEEN NINETY INTENSE CONTROVERSY AND OPPOSITION FROM CORPORATE MANAGERS ASSISTED BY CHARGES OF FRAUD THE INCREASE IN DEFAULT AND BANKRUPTCY RATES AND INSIDER TRADING PROSECUTIONS CAUSED THE SHUTDOWN OF THE CONTROL MARKET THROUGH POLITICAL LEGAL AND REGULATORY MEANS LEVERAGED BUYOUTS AND MANAGEMENT BUYOUTS FELL TO SLIGHTLY MORE THAN ONE BILLION DOLLARS IN NINETEEN NINETY ONE FROM EIGHTY BILLION DOLLARS IN NINETEEN EIGHTY EIGHT IN THE SAME YEAR THE TOTAL VALUE OF TRANSACTIONS FELL TO NINETY SIX BILLION DOLLARS FROM THREE HUNDRED FORTY BILLION DOLLARS IN NINETEEN EIGHTY EIGHT THE WEAKENING OF THE CONTROL MARKET AS AN EFFECTIVE INFLUENCE ON U. S. CORPORATIONS HAS NOT ENDED THE RESTRUCTURING BUT IT MEANS THAT ORGANIZATIONS HAVE TYPICALLY POSTPONED ADDRESSING THE PROBLEMS THEY FACE UNTIL FORCED TO BY FINANCIAL DIFFICULTIES GENERATED BY THE PRODUCT MARKETS UNFORTUNATELY THE DELAY MEANS THAT SOME OF THESE ORGANIZATIONS WILL NOT SURVIVE OR WILL SURVIVE AS MERE SHADOWS OF THEIR FORMER SELVES MR. JENSEN IS A PROFESSOR OF BUSINESS ADMINISTRATION AT HARVARD BUSINESS SCHOOL CHRYSLER CORPORATION SAID IT IS RECALLING ONE HUNDRED FIFTEEN THOUSAND NINETEEN NINETY THREE JEEP GRAND CHEROKEES AND GRAND WAGONEERS TO CORRECT A PROBLEM WITH THE STEERING COLUMN THE RECALL IS THE THIRD SINCE CHRYSLER LAUNCHED THE LUXURIOUS JEEP IN NINETEEN NINETY TWO AND HIGHLIGHTS THE QUALITY CHALLENGES FACING THE AUTO MAKER EVEN ON ITS NEWER VEHICLES OWNERS OF THE JEEPS ARE BEING NOTIFIED THIS WEEK TO TAKE THEIR VEHICLES IN FOR REPAIR THE PROBLEM STEMS FROM A FLAW IN PINS THAT HOLD TOGETHER THE TOP AND BOTTOM HALVES OF THE JEEPS' STEERING COLUMNS CHRYSLER SAID NO ACCIDENTS OR INJURIES HAVE OCCURRED AS A RESULT OF THE PROBLEM AND THAT ONLY TWELVE INCIDENTS HAVE BEEN REPORTED A GOOD PERCENTAGE OF THE ONE HUNDRED FIFTEEN THOUSAND JEEPS WERE THE SUBJECT OF TWO EARLIER RECALLS INVOLVING ONE HUNDRED SEVENTEEN THOUSAND JEEPS WITH A FAULTY DOOR LATCH AND SUSPENSION BOLT RESULTS GOODYEAR TIRE AND RUBBER COMPANY SAID IT EXPECTS NINETEEN NINETY THREE NET INCOME IN THE RANGE OF THREE HUNDRED EIGHTY FIVE MILLION DOLLARS TO THREE HUNDRED NINETY MILLION DOLLARS OR TWO DOLLARS AND SIXTY CENTS TO TWO DOLLARS AND SIXTY FIVE CENTS A SHARE INCLUDING A PREVIOUSLY ANNOUNCED ACCOUNTING CHARGE OF EIGHTY SIX POINT THREE MILLION DOLLARS RELATED TO POST EMPLOYMENT BENEFITS RESULTS WILL BE REPORTED FEBRUARY NINTH IN NINETEEN NINETY TWO THE TIRE MAKER POSTED A LOSS OF SIX HUNDRED FIFTY EIGHT POINT SIX MILLION DOLLARS OR FOUR DOLLARS AND SIXTY ONE CENTS A SHARE REFLECTING A MAY NINETEEN NINETY THREE TWO FOR ONE STOCK SPLIT AFTER EXTRAORDINARY CHARGES THAT INCLUDED A NONCASH CHARGE OF MORE THAN ONE BILLION DOLLARS FOR RETIREE NONPENSION BENEFITS WORLD WIDE SALES FOR NINETEEN NINETY THREE ARE EXPECTED TO BE ABOUT ELEVEN POINT SIX BILLION DOLLARS UP FROM ELEVEN POINT FOUR BILLION DOLLARS EXCLUDING SALES OF ABOUT THREE HUNDRED MILLION DOLLARS FROM DIVESTED NONCORE BUSINESSES GOODYEAR SAID CORPORATE DEBT WHICH IN MID NINETEEN NINETY ONE CLIMBED TO THREE POINT SEVEN BILLION DOLLARS HAS BEEN REDUCED TO JUST OVER ONE POINT FOUR BILLION DOLLARS AND INTEREST EXPENSE HAS BEEN CUT BY ALMOST HALF GEORGIA PACIFIC CORPORATION STILL GRAPPLING WITH LOW PULP PRICES REPORTED A LOSS FOR BOTH THE FOURTH QUARTER AND THE YEAR FOR THE QUARTER THE ATLANTA FOREST PRODUCTS CONCERN REPORTED A THIRTY SIX MILLION DOLLAR LOSS OR FORTY ONE CENTS A SHARE COMPARED WITH YEAR EARLIER PROFIT OF ONE HUNDRED FOUR MILLION DOLLARS OR ONE DOLLAR AND TWENTY ONE CENTS A SHARE THE LATEST QUARTER INCLUDES A TWENTY SIX MILLION DOLLAR CHARGE RELATED TO AN EMPLOYEE COMPENSATION PROGRAM SALES ROSE TO THREE POINT TWO BILLION DOLLARS FROM TWO POINT NINE ONE BILLION DOLLARS A YEAR AGO THE QUARTERLY LOSS WAS ATTRIBUTED PARTLY TO DOWNTIME AT SEVERAL MAJOR PULP AND PAPER PLANTS CAUSED BY A COMBINATION OF FACTORS INCLUDING EQUIPMENT REPAIRS AND CONTINUING SLACK DEMAND ACCORDING TO A SPOKESWOMAN FOR THE YEAR GEORGIA PACIFIC REPORTED A LOSS OF THIRTY FOUR MILLION DOLLARS OR THIRTY NINE CENTS A SHARE COMPARED WITH A NINETEEN NINETY TWO LOSS OF ONE HUNDRED TWENTY FOUR MILLION DOLLARS OR ONE DOLLAR AND FORTY THREE CENTS A SHARE NORTH AMERICAN TECHNOLOGIES GROUP INCORPORATED SAID ONE OF ITS UNITS RECEIVED A CREDIT LINE OF EIGHTEEN MILLION DOLLARS FROM EURO SCOTIA FUNDING BARBADOS LIMITED UNDER TERMS NORTH AMERICAN TECHNOLOGIES INCORPORATED THE UNIT WILL BE ENTITLED TO DRAW AS MUCH AS FIVE HUNDRED THOUSAND DOLLARS A MONTH THE LINE WILL EXTEND THROUGH JANUARY THIRTY FIRST NINETEEN NINETY SEVEN ANY AMOUNTS UNPAID AT THAT TIME WILL BE REPAID OVER A PERIOD OF SEVEN YEARS AT EIGHT PERCENT INTEREST A YEAR IN LIEU OF PAYMENT IN CASH EURO SCOTIA MAY ELECT TO CONVERT UNPAID AMOUNTS INTO SHARES OF NORTH AMERICAN AT THE MARKET PRICE AT THE TIME OF THE ELECTION NORTH AMERICAN WILL USE THE FUNDS FOR SEVERAL PURPOSES INCLUDING WORKING CAPITAL AND THE EXPANSION OF ITS ENVIRONMENTAL BUSINESS TRINOVA CORPORATION A MAUMEE OHIO MAKER OF AUTOMOTIVE AEROSPACE AND DEFENSE COMPONENTS SAID IT SEES CONTINUED IMPROVEMENT IN THE U. S. INDUSTRIAL MARKETS BUT A DEPRESSED EUROPE COULD HURT SALES GROWTH IN THAT MARKET THIS YEAR TRINOVA SAID IT EARNED FOUR POINT FIVE MILLION DOLLARS OR SIXTEEN CENTS A SHARE IN THE FOURTH QUARTER INCLUDED IN THOSE RESULTS IS A CHARGE OF FOUR POINT SEVEN MILLION DOLLARS OR SEVENTEEN CENTS A SHARE RELATED TO A PROVISION FOR ADDITIONAL VALUE ADDED TAXES OWED IN PRIOR YEARS IN BRAZIL IN THE YEAR EARLIER QUARTER TRINOVA EARNED SIX POINT ONE MILLION DOLLARS OR TWENTY ONE CENTS A SHARE SALES SLIPPED TO FOUR HUNDRED ONE POINT SEVEN MILLION DOLLARS FROM FOUR HUNDRED THIRTY ONE POINT SIX MILLION DOLLARS QUOTE WE EXPECT TO SEE CONTINUED IMPROVEMENT IN THE U. S. INDUSTRIAL MARKETS IN NINETEEN NINETY FOUR WHICH WILL HELP STRENGTHEN OUR INDUSTRIAL MARGINS FURTHER QUOTE SAID DARRYL F. ALLEN TRINOVA'S CHAIRMAN AND CHIEF EXECUTIVE MR. ALLEN SAID THAT EUROPE SEEMS TO BE STABILIZING BUT EXPECTS THAT THE CONTINUED DEPRESSED LEVELS OF EUROPEAN AUTO PRODUCTION AND SEVERE PRICE COMPETITION WILL INHIBIT OUR SALES GROWTH IN NINETEEN NINETY FOUR OHM CORPORATION FINDLAY OHIO SAID IT RECEIVED TWO CONTRACTS FROM THE U. S. AIR FORCE TO REMEDIATE HAZARDOUS WASTE SITES AT THREE U. S. BASES THE ENVIRONMENTAL REMEDIATION CONCERN SAID BOTH CONTRACTS ARE INDEFINITE DELIVERY SLASH INDEFINITE QUANTITY TYPE CONTRACTS WITH A BASE YEAR PLUS FOUR OPTION YEARS THAT MAY BE EXTENDED AT THE AIR FORCE'S OPTION OHM SAID IT IS QUOTE REASONABLE QUOTE TO EXPECT THE POTENTIAL VALUE OF THE CONTRACTS TO BE ONE HUNDRED TEN MILLION DOLLARS OVER FIVE YEARS UNDER THE FIRST CONTRACT OHM IS ONE OF SIX CONTRACTORS CHOSEN TO COMPETE FOR AN ESTIMATED EIGHTY MILLION DOLLARS A YEAR OF REMEDIAL PROJECTS AT HILL AIR FORCE BASE OGDEN UTAH UNDER THE OTHER CONTRACT THE COMPANY IS ONE OF FOUR COMPANIES COMPETING FOR AN ESTIMATED THIRTY EIGHT MILLION DOLLARS A YEAR OF REMEDIAL PROJECTS AT TINKER AIR FORCE BASE NEAR OKLAHOMA CITY AND EGLIN AIR FORCE BASE MARY ESTER FLORIDA LION GROUP SIGNED A LONG AWAITED PRIVATIZATION AGREEMENT WITH THE GOVERNMENT OF THE MALAYSIAN STATE OF SABAH TO ACQUIRE ITS FINANCIALLY AILING SABAH FOREST INDUSTRIES SDN B. H. D. IN A CASH TRANSACTION VALUED AT FIVE HUNDRED MILLION MALAYSIAN DOLLARS ONE HUNDRED EIGHTY ONE POINT EIGHT MILLION U. S. DOLLARS THE SIGNING OF THE DEAL CLOSED ONE CHAPTER IN THE DIVESTMENT OF ONE OF THE STATE'S LARGEST ASSETS AND ONE OF THE BIGGEST DRAINS ON THE STATE'S COFFERS MARKET ATTENTION WILL FOCUS ON MEASURES TO BE ADOPTED BY THE KUALA LUMPUR BASED LION GROUP TO REVIVE THE DEEPLY INDEBTED SFI WHOSE OPERATIONS INCLUDE LOGGING AND PULP AND PAPER MANUFACTURING MALAYSIAN INVESTMENT ANALYSTS ARE WARY OF LION'S ABILITY TO TURN AROUND SFI BECAUSE THE SABAH COMPANY'S OPERATIONS DON'T MESH WITH LION'S WHICH INVOLVE STEEL MANUFACTURING MOTORCYCLE ASSEMBLY PROPERTY DEVELOPMENT AND RETAILING LYONDELL PETROCHEMICAL COMPANY HOUSTON SAID IT SET ITS NINETEEN NINETY FOUR CAPITAL SPENDING AT NINETY MILLION DOLLARS COMPARED WITH NINETEEN NINETY THREE CAPITAL EXPENDITURES OF SIXTY NINE MILLION DOLLARS THE PETROCHEMICAL COMPANY ALLOTED THIRTY MILLION DOLLARS TO PETROCHEMICAL OPERATIONS COMPARED WITH FIFTEEN MILLION DOLLARS IN NINETEEN NINETY THREE THE REMAINING SIXTY MILLION DOLLARS WILL GO TO LYONDELL'S AFFILIATE LYONDELL CITGO REFINING COMPANY WHICH RECEIVED FORTY FIVE MILLION DOLLARS IN NINETEEN NINETY THREE THE NINETEEN NINETY FOUR BUDGET INCLUDES BUILDING COSTS FOR A BUTYLENE ISOMERIZATION UNIT AT THE COMPANY'S CHANNELVIEW TEXAS PLANT A PROJECT LYONDELL SAID IT EXPECTS TO COMPLETE BY THE FOURTH QUARTER NOT INCLUDED IN THE NINETEEN NINETY FOUR BUDGET IS THE ONE HUNDRED FIFTY MILLION DOLLAR LYONDELL CITGO REFINING COMPANY SAID IT WILL SPEND THIS YEAR ON AN EIGHT HUNDRED MILLION DOLLAR UPGRADE OF ITS HOUSTON REFINERY A JOINT VENTURE WITH CITGO PETROLEUM CORPORATION A U. S. SUBSIDIARY OF PETROLEOS DE VENEZUELA S. A. FUJI HEAVY INDUSTRIES LIMITED A MAJOR JAPANESE CAR MAKER THAT PRODUCES SUBARUBRAND CARS WILL CUT ITS WHITE COLLAR LABOR FORCE BY FIVE HUNDRED TO SIX HUNDRED EMPLOYEES DURING THE FISCAL YEAR BEGINNING APRIL FIRST A COMPANY SPOKESWOMAN SAID THE COMPANY WILL MAKE THE CUTS BY REDUCING THE NUMBER OF NEW EMPLOYEES HIRED AND BY NOT REPLACING SOME RETIRING EMPLOYEES INSTEAD OF BY RESORTING TO LAYOFFS SHE ADDED OF ITS TOTAL LABOR FORCE OF FIFTEEN THOUSAND FUJI HEAVY HAS FOUR THOUSAND WHITE COLLAR EMPLOYEES INVOLVED IN MANAGEMENT ACCOUNTING AND OPERATIONS THE SPOKESWOMAN SAID FUJI HEAVY HAS NO ESTIMATES OF THE COST SAVINGS FOR THE NEXT FISCAL YEAR FROM THE PERSONNEL CUTS FUJI HEAVY HAS SEEN SLUGGISH SALES FOR SEVERAL YEARS AND POSTED A NET LOSS IN TWO OF THE PAST THREE YEARS JOSTENS INCORPORATED SAID IT AGREED TO SELL ITS ARTEX MANUFACTURING SPORTSWEAR BUSINESS TO CHICAGO BASED APPAREL MAKER FRUIT OF THE LOOM INCORPORATED FOR FORTY SIX POINT SEVEN MILLION DOLLARS THE MINNEAPOLIS MAKER OF CLASS RINGS YEARBOOKS AND EDUCATIONAL SOFTWARE DISCLOSED LAST SUMMER THAT IT WANTED TO SELL THE UNIT SAYING IT DIDN'T FIT WITH JOSTENS' QUOTE STRATEGIC FOCUS QUOTE THE SPORTSWEAR UNIT'S MANAGEMENT SUBSEQUENTLY PROPOSED TO ACQUIRE THE OPERATION AND JOSTENS DISCLOSED IN NOVEMBER THAT IT HAD RECEIVED AN UNSOLICITED RIVAL PROPOSAL FOR ARTEX FROM A PARTY IT DIDN'T IDENTIFY A SPOKESMAN CONFIRMED THAT THE NOVEMBER BID CAME FROM FRUIT OF THE LOOM ARTEX UNDER LICENSING ARRANGEMENTS MANUFACTURES CLOTHES DECORATED WITH LOGOS OF SPORTS TEAMS DISNEY FIGURES AND THE LIKE IT HAD SALES IN THE FISCAL YEAR ENDED JUNE THIRTIETH OF ABOUT SEVENTY SIX MILLION DOLLARS GILLETTE COMPANY REPORTED FOURTH QUARTER NET INCOME OF FOUR POINT NINE MILLION DOLLARS OR TWO CENTS A SHARE AFTER A CHARGE FOR A PREVIOUSLY ANNOUNCED REALIGNMENT ON SALES OF ONE POINT SIX TWO BILLION DOLLARS EXCLUDING THE CHARGE EARNINGS WERE ONE HUNDRED SIXTY NINE MILLION DOLLARS THE ONE TIME CHARGE OF ONE HUNDRED SIXTY FOUR POINT ONE MILLION DOLLARS REDUCED PROFIT BY SEVENTY FOUR CENTS A SHARE FOR THE YEAR AGO QUARTER GILLETTE REPORTED NET INCOME OF ONE HUNDRED THIRTY FIVE MILLION DOLLARS OR SIXTY ONE CENTS A SHARE ON SALES OF ONE POINT FIVE ONE BILLION DOLLARS THE BOSTON PERSONAL CARE PRODUCTS COMPANY HAS ANNOUNCED PLANS TO REORGANIZE ITS FACILITIES WORLD WIDE SHEDDING TWO THOUSAND EMPLOYEES MOSTLY OVERSEAS AS IT ADDS ABOUT THAT MANY JOBS ELSEWHERE FOR NINETEEN NINETY THREE THE COMPANY HAD NET INCOME OF TWO HUNDRED EIGHTY EIGHT POINT THREE MILLION DOLLARS OR ONE DOLLAR AND TWENTY NINE CENTS A SHARE COMPARED WITH NET OF FIVE HUNDRED THIRTEEN MILLION DOLLARS OR TWO DOLLARS AND THIRTY TWO CENTS A SHARE IN NINETEEN NINETY TWO SALES WERE FIVE POINT FOUR ONE BILLION DOLLARS UP FIVE PERCENT FROM FIVE POINT ONE SIX BILLION DOLLARS IN NINETEEN NINETY TWO NYNEX CORPORATION NEW YORK SAID IT WILL INSTALL PUBLIC PHONES IN NEW YORK THAT ACCEPT PREPAID TELEPHONE CARDS INSTEAD OF COINS THE REGIONAL PHONE COMPANY SIGNED AN AGREEMENT WITH A UNIT OF JAPAN'S MITSUI AND COMPANY TO ACQUIRE FIVE THOUSAND COINLESS PHONES BY NINETEEN NINETY SIX NYNEX SAID IT WILL INSTALL ONE THOUSAND SUCH PHONES IN DOWNTOWN MANHATTAN THIS YEAR STARTING IN JUNE THE TELEPHONE CARD IS INSERTED INTO A SLOT ON THE PHONE AND THE CASH AMOUNT AVAILABLE IS READ BY A SCANNER CUSTOMERS WILL BE ABLE TO BUY THE CARDS IN FIVE DOLLARS TEN DOLLARS AND TWENTY DOLLAR DENOMINATIONS FROM VENDING MACHINES NEWSSTANDS AND OTHER LOCATIONS TEXAS UTILITIES COMPANY'S T. U. ELECTRIC SUBSIDIARY SAID IT WILL ASK THE PUBLIC UTILITY COMMISSION TO RECONSIDER ITS DECISION TURNING DOWN THE COMPANY'S FIFTEEN POINT THREE PERCENT RATE INCREASE REQUEST ALTHOUGH THE COMMISSION HASN'T YET ISSUED A FINAL ORDER THE UTILITY SAYS IT UNDERSTANDS THE INCREASE WOULD BE EIGHT POINT SEVEN PERCENT QUOTE THIS INCREASE IS INSUFFICIENT TO COVER THE COST OF SUSTAINING RELIABLE ELECTRIC SERVICE AND TO BEGIN RESTORING THE COMPANY'S FINANCIAL INTEGRITY QUOTE T. U. CHAIRMAN ERLE NYE SAID GANNETT COMPANY ARLINGTON VIRGINIA CITING GROWTH IN NEWSPAPER AND BROADCAST ADVERTISING REVENUE SAID NET INCOME JUMPED THIRTEEN PERCENT IN THE FISCAL FOURTH QUARTER FOR THE QUARTER ENDED DECEMBER TWENTY SIXTH THE MEDIA CONCERN REPORTED EARNINGS OF ONE HUNDRED TWENTY NINE MILLION DOLLARS OR EIGHTY EIGHT CENTS A SHARE COMPARED WITH ONE HUNDRED FOURTEEN POINT TWO MILLION DOLLARS OR SEVENTY NINE CENTS A SHARE A YEAR EARLIER REVENUE INCREASED FIVE POINT ONE PERCENT TO NINE HUNDRED EIGHTY TWO POINT SIX MILLION DOLLARS FROM NINE HUNDRED THIRTY FIVE POINT ONE MILLION DOLLARS FOR THE YEAR NET NEARLY DOUBLED TO THREE HUNDRED NINETY SEVEN POINT EIGHT MILLION DOLLARS OR TWO DOLLARS AND SEVENTY TWO CENTS A SHARE FROM ONE HUNDRED NINETY NINE POINT SEVEN MILLION DOLLARS OR ONE DOLLAR AND THIRTY NINE CENTS A SHARE YEAR EARLIER RESULTS INCLUDED A ONE HUNDRED EIGHTY MILLION DOLLAR CHARGE FOR RETIREMENT BENEFITS AND A THIRTY FOUR MILLION DOLLAR CREDIT RELATED TO INCOME TAXES REVENUE ROSE FIVE PERCENT TO THREE POINT SIX FOUR BILLION DOLLARS FROM THREE POINT FOUR SEVEN BILLION DOLLARS GANNETT SAID THE RESULTS REFLECT QUOTE SIGNIFICANT QUOTE RECOVERY IN THE BROADCAST SEGMENT AND PROFIT FROM FLAGSHIP NEWSPAPER U. S. A. TODAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GANNETT SHARES FELL EIGHTY SEVEN POINT FIVE CENTS TO FIFTY SIX POINT EIGHT SEVEN FIVE DOLLARS SHOPSMITH INCORPORATED SAID IT IS CLOSING NINE RETAIL STORES AND SELLING TWELVE OTHERS RESULTING IN A QUOTE SUBSTANTIAL QUOTE RESTRUCTURING CHARGE FOR ITS THIRD QUARTER ENDED DECEMBER THIRTY FIRST THE AMOUNT HASN'T BEEN DETERMINED ACCORDING TO THE MAKER OF WOODWORKING TOOLS THE DAYTON OHIO COMPANY SAID OPERATING RESULTS EXCLUDING THE RESTRUCTURING CHARGE ARE EXPECTED TO BE SUBSTANTIALLY BELOW THE YEAR AGO PERIOD IN THE YEAR AGO QUARTER SHOPSMITH EARNED ONE HUNDRED SEVEN THOUSAND DOLLARS OR FIVE CENTS A SHARE ON REVENUE OF FIFTEEN POINT SEVEN MILLION DOLLARS THE TWELVE STORES ARE BEING SOLD TO WOODCRAFT INCORPORATED A PARKERSBURG WEST VIRGINIA WOODWORKING RETAILER AND MAIL ORDER COMPANY SHOPSMITH WILL HAVE TWENTY THREE STORES FOLLOWING THE CLOSINGS AND SALES ULTRATECH STEPPER INCORPORATED A CHIP AND COMPUTER STORAGE EQUIPMENT MAKER SAID IT EXPECTS TO REPORT FOURTH QUARTER EARNINGS EXCEEDING ANALYSTS' CONSENSUS ESTIMATES BY AT LEAST TEN PERCENT THE SAN JOSE CALIFORNIA COMPANY WILL FORMALLY ANNOUNCE ITS RESULTS NEXT WEEK BUT IN AN INTERVIEW CHIEF EXECUTIVE OFFICER ARTHUR ZAFIROPOULO SAID HE EXPECTS ULTRATECH TO POST EARNINGS OF ONE POINT SIX MILLION DOLLARS TO ONE POINT SEVEN MILLION DOLLARS OR TWENTY TWO CENTS TO TWENTY THREE CENTS A SHARE ON REVENUE OF SIXTEEN POINT FOUR MILLION DOLLARS ANALYSTS HAVE EXPECTED THE COMPANY TO EARN FROM NINETEEN CENTS TO TWENTY CENTS A SHARE ON REVENUE OF ABOUT SIXTEEN MILLION DOLLARS MR. ZAFIROPOULO ATTRIBUTED THE BETTER THAN EXPECTED RESULTS TO HIGHER SALES ABROAD ULTRATECH'S BACKLOG ALSO IS STRONGER AS OF DECEMBER THIRTY FIRST THE VALUE OF ORDERS EXCEEDED THIRTY MILLION DOLLARS MR. ZAFIROPOULO SAID ARMCO STEEL COMPANY AND THE UNITED STEELWORKERS OF AMERICA AGREED TO A JUNE FIRST EXPIRATION DATE FOR THEIR EXISTING LABOR CONTRACT ARMCO IS A FIFTY TO FIFTY JOINT VENTURE BETWEEN ARMCO INCORPORATED AND KAWASAKI STEEL CORPORATION THE AGREEMENT COVERS ABOUT ONE THOUSAND TWO HUNDRED EMPLOYEES AT ARMCO STEEL'S ASHLAND KENTUCKY STEELMAKING OPERATIONS THE PARTIES ALSO AGREED TO A THIRD PARTY DISPUTE RESOLUTION PROCEDURE IF NEEDED TO REACH A NEW CONTRACT UNDER TERMS OF THE EXTENSION NO STRIKES SLOWDOWNS WORK STOPPAGES OR LOCKOUTS WILL OCCUR WHILE A CONTRACT IS NEGOTIATED U. S. LONG DISTANCE CORPORATION SAN ANTONIO CANCELED PLANS TO SELL ONE POINT SIX MILLION OF ITS SHARES TO THE PUBLIC IN THE WAKE OF A SECURITIES AND EXCHANGE COMMISSION INQUIRY INTO THE COMPANY'S ACCOUNTING THE LONG DISTANCE AND OPERATOR SERVICES COMPANY HAD PUT THE OFFERING ON HOLD LAST MONTH CITING THE INFORMAL S. E. C. PROBE IN CANCELING THE OFFERING THE COMPANY SAID THE INQUIRY WASN'T A FACTOR OF THE ONE POINT SIX MILLION SHARES IN THAT OFFERING ONE POINT TWO MILLION WERE TO BE SOLD BY THE COMPANY AND FOUR HUNDRED THOUSAND BY CERTAIN STOCKHOLDERS INCLUDING OFFICERS YESTERDAY THE COMPANY SAID IT WOULD REGISTER WITH THE S. E. C. PLANS FOR CERTAIN STOCKHOLDERS NOT INCLUDING OFFICERS TO SELL ABOUT ONE POINT FIVE MILLION SHARES THE S. E. C. INQUIRY RELATES TO THE ACCOUNTING OF CERTAIN RECEIVABLES THAT THE COMPANY ACQUIRES THE COMPANY CONTENDS ITS FINANCIAL RESULTS ARE FAIRLY STATED SONY CORPORATION'S COLUMBIA PICTURES SAID MICHAEL NATHANSON RESIGNED AS EXECUTIVE VICE PRESIDENT OF THE STUDIO MR. NATHANSON'S DEPARTURE HAD BEEN EXPECTED FOR SOME TIME HE WAS APPOINTED TO THE POST LAST YEAR WHEN LISA HENSON WAS BROUGHT IN FROM TIME WARNER INCORPORATED'S WARNER BROTHERS UNIT TO SUCCEED HIM AS HEAD OF PRODUCTION AT THE STUDIO THE MOVE TOOK HIM OUT OF DIRECT OPERATING RESPONSIBILITY FOR MOVIE MAKING MR. NATHANSON THIRTY EIGHT YEARS OLD DECLINED TO COMMENT STUDIO EXECUTIVES SAID HE IS CLOSE TO AN AGREEMENT TO JOIN NEW REGENCY PRODUCTIONS THE FILM COMPANY OF PRODUCER ARNON MILCHAN A SPOKESMAN FOR NEW REGENCY COULDN'T BE REACHED CALLAWAY GOLF COMPANY REPORTED FOURTH QUARTER NET INCOME DOUBLE THAT OF A YEAR EARLIER ANNOUNCED A ONE HUNDRED PERCENT STOCK DIVIDEND AND SAID IT WILL QUADRUPLE ITS QUARTERLY PAYOUT THE CARLSBAD CALIFORNIA GOLF CLUB MAKER SAID NET JUMPED TO TEN POINT THREE MILLION DOLLARS OR FIFTY EIGHT CENTS A SHARE FROM FIVE POINT ONE MILLION DOLLARS OR THIRTY THREE CENTS A SHARE A YEAR EARLIER SALES SOARED EIGHTY SIX PERCENT TO SIXTY EIGHT POINT TWO MILLION DOLLARS FROM THIRTY SIX POINT SEVEN MILLION DOLLARS CALLAWAY STOCK CLIMBED FOUR POINT ONE TWO FIVE DOLLARS A SHARE OR SEVEN POINT ONE PERCENT YESTERDAY TO CLOSE AT SIXTY TWO POINT SIX TWO FIVE DOLLARS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID IT WILL PAY A ONE FOR ONE STOCK DIVIDEND ON MARCH THIRD TO STOCK OF RECORD FEBRUARY TENTH HAVING THE EFFECT OF A TWO FOR ONE STOCK SPLIT THE COMPANY SAID IT WILL EFFECTIVELY QUADRUPLE ITS QUARTERLY DIVIDEND PAYING FIVE CENTS A SHARE TO THE NEWLY DOUBLED SHARES ON MARCH THIRD TO STOCK OF RECORD FEBRUARY TENTH AUTHENTIC FITNESS CORPORATION SAID IT PLANS TO REDUCE ITS ANNUAL INTEREST EXPENSE BY EIGHT HUNDRED THOUSAND DOLLARS OR FIVE CENTS A SHARE BY REFINANCING A ONE HUNDRED MILLION DOLLAR CREDIT FACILITY WITH A NEW ONE HUNDRED MILLION DOLLAR CREDIT FACILITY THE SPORTSWEAR MAKER SAID THE NEW LOAN WILL BEAR INTEREST AT A VARIABLE RATE BASED ON THE LONDON INTERBANK OFFERED RATE OR LIBOR PLUS ONE PERCENT REDUCED FROM LIBOR PLUS TWO POINT SEVEN FIVE PERCENT ON ITS CURRENT LOAN AS HE TOURED EARTHQUAKE DAMAGED KENNEDY HIGH SCHOOL HERE THIS WEEK CALIFORNIA GOVERNOR PETE WILSON WALKED INTO A ROOM STREWN WITH BOOKS AND TWISTED METAL SHELVING AND SHOOK HIS HEAD QUOTE WELL IT'S A MESS QUOTE HE SAID QUOTE BUT IT CAN ALL GET CLEANED UP QUOTE THAT'S ALSO A PRETTY APT DESCRIPTION OF GOVERNOR WILSON'S POLITICAL SITUATION AS HE PREPARES TO RUN FOR RE ELECTION THIS YEAR FOLLOWING ONE OF THE COSTLIEST NATURAL DISASTERS IN HISTORY LIKE MOSES WATCHING PLAGUES DESCEND ON EGYPT MR. WILSON HAS WATCHED DISASTERS RAIN DOWN ON CALIFORNIA IN HIS THREE YEARS AS GOVERNOR RIOTS WILDFIRES DEEP DEFENSE SPENDING CUTS SEVERE RECESSION THE LOSS OF NINE HUNDRED THOUSAND JOBS AS THE PROBLEMS HAVE MOUNTED MR. WILSON'S POPULARITY HAS SUNK UNTIL ONE PRE EARTHQUAKE POLL SHOWED THAT FORTY PERCENT OF THOSE SURVEYED RATED HIS JOB PERFORMANCE AS POOR OR VERY POOR IT'S BEEN THE REPUBLICAN GOVERNOR SAYS WITH A DRY SMILE A REMARKABLE FIRST TERM SO THE SHOCK AND COST OF THE GIANT LOS ANGELES AREA EARTHQUAKE SHOULD JUST DRIVE ANOTHER NAIL INTO PETE WILSON'S POLITICAL COFFIN RIGHT MAYBE BUT MAYBE NOT GOVERNOR WILSON A STOLID BUT TENACIOUS EX MARINE HAS BEEN UNDERESTIMATED BEFORE ONLY TO RISE UP AND SLAY TWO OF CALIFORNIA'S DEMOCRATIC HEAVYWEIGHTS JERRY BROWN IN A NINETEEN EIGHTY TWO SENATE RACE AND DIANNE FEINSTEIN IN HIS NINETEEN NINETY RUN FOR GOVERNOR AND NOW ALONG WITH ALL THE PROBLEMS THE EARTHQUAKE ALSO PRESENTS AN OPPORTUNITY FOR THE GOVERNOR TO REINFORCE THE CENTRAL IMAGE HE HAS TRIED TO PROJECT AS A TOUGH AND UNFLINCHING LEADER CAPABLE OF MAKING HARD DECISIONS IN TURBULENT TIMES WHAT THE REBUILDING EFFORT REPRESENTS IS A TEST SAYS DAN SCHNUR MR. WILSON'S CAMPAIGN SPOKESMAN PEOPLE WILL HAVE TO PERCEIVE PETE WILSON AS SOMEBODY WHO HAS ACTED QUICKLY AND EFFECTIVELY HOW WELL THE GOVERNOR PERFORMS IN THAT TEST HAS BROAD IMPLICATIONS FOR IF MR. WILSON CAN CONQUER SUCH SUBSTANTIAL OBSTACLES AND WIN RE ELECTION IN THE NATION'S MOST POPULOUS AND TROUBLED STATE HE WILL AUTOMATICALLY BECOME A FACTOR IN REPUBLICAN THINKING IN THE NINETEEN NINETY SIX PRESIDENTIAL CAMPAIGN IN HIS QUEST FOR RE ELECTION GOVERNOR WILSON WILL HAVE TO FACE EITHER KATHLEEN BROWN THE TELEGENIC STATE TREASURER WHOSE BROTHER AND FATHER BOTH SERVED AS GOVERNOR OR JOHN GARAMENDI THE ENERGETIC AND BLUNT STATE INSURANCE COMMISSIONER BOTH CURRENTLY OUTSCORE THE GOVERNOR IN POLLSTERS' THEORETICAL MATCHUPS THOUGH BEFORE THE EARTHQUAKE THE WILSON CAMP SAW SIGNS HE WAS CLOSING THE GAP THAT TELLS ME THAT THE PEOPLE OF THE STATE ARE INTELLIGENT AND FAIR MINDED AND THEY'VE FINALLY COME TO THE CONCLUSION THAT THE RECESSION WAS NO MORE MY FAULT THAN THE EARTHQUAKE MR. WILSON MAINTAINS IN AN INTERVIEW THERE'S NO DOUBT THAT THE EARTHQUAKE WILL COMPLICATE THE TASK OF MAKING A POLITICAL COMEBACK FOR STARTERS EARTHQUAKE COSTS IMPERIL THE GOVERNOR'S NEW AND AUSTERE THIRTY EIGHT POINT EIGHT BILLION DOLLAR BUDGET THAT BUDGET WHICH SLICES FURTHER INTO SOCIAL SERVICES AND THE STATE BUREAUCRACY ALREADY HAS A TWO POINT THREE BILLION DOLLAR HOLE BECAUSE IT COUNTS ON MONEY GOVERNOR WILSON IS DEMANDING BUT MAY NEVER GET FROM THE FEDERAL GOVERNMENT TO COVER THE COST OF PROVIDING FEDERALLY MANDATED SERVICES FOR ILLEGAL IMMIGRANTS NOW THE EARTHQUAKE WILL LAY A WHOLE NEW SET OF COSTS ON THE STATE'S DOORSTEP AND THAT MEANS GOVERNOR WILSON WHO HAS NEVER FULLY RECOVERED FROM PUSHING THROUGH A SEVEN POINT FIVE BILLION DOLLAR TAX INCREASE IN HIS FIRST YEAR ALREADY IS COMING UNDER PRESSURE FROM DEMOCRATS TO PROPOSE ANOTHER TAX INCREASE OF SOME KIND TO COVER EARTHQUAKE COSTS GOVERNOR WILSON SAYS HE'LL RAISE TAXES ONLY AS A QUOTE LAST RESORT QUOTE AND MAINTAINS IT IS FOOLHARDY TO BE TALKING OF DOING SO NOW BEFORE THE STATE'S FULL EARTHQUAKE COSTS ARE KNOWN THOSE PUSHING A TAX PACKAGE ARE SWINGING IN THE DARK HE COMPLAINS THEY DON'T KNOW WHETHER THE BALL'S OVER THE PLATE OR OVER THEIR HEADS THE GOVERNOR'S STRATEGY APPEARS TO BE TO HOLD OFF UNTIL HE CAN SQUEEZE AS MUCH ASSISTANCE AS POSSIBLE OUT OF FEDERAL COFFERS BUT THAT'S ALREADY LEADING TO SOME DEMOCRATIC GRUMBLING THAT HE IS RESPONDING TOO SLOWLY TO THE DISASTER AND THERE PROBABLY WILL BE MORE OVERT CRITICISM DOWN THE ROAD AS DEMOCRATS BEGIN ASKING WHY SOME AVAILABLE STATE BOND FUNDS HADN'T BEEN SPENT ON PROJECTS TO PREPARE ROADS AND BRIDGES TO WITHSTAND AN EARTHQUAKE ON TOP OF THOSE PROBLEMS THE EARTHQUAKE ALSO HAS SIDETRACKED TEMPORARILY MR. WILSON'S EFFORTS TO RAISE THE PROFILE OF CRIME AND IMMIGRATION ISSUES WHERE HIS TOUGH GUY IMAGE HAS STRUCK A DEEPER CHORD WITH VOTERS THAN IT DOES ON ECONOMIC TROUBLES BUT PERHAPS THE BIGGEST DANGER OF ALL IS THE POSSIBILITY THAT THE EARTHQUAKE COULD STIFLE THE SIGNS OF RENEWED ECONOMIC OPTIMISM THAT HAD JUST STARTED TO POP UP MR. WILSON ASSERTS THAT A PACKAGE OF INVESTMENT TAX INCENTIVES AND AN OVERHAUL OF THE STATE'S NOTORIOUS WORKERS COMPENSATION SYSTEM WHICH HE SIGNED INTO LAW LAST YEAR WERE BEGINNING TO BREATHE SOME JOB CREATING LIFE BACK INTO THE STATE'S ECONOMY NOW IT'S IMPOSSIBLE TO KNOW HOW MUCH OF THAT BUSINESS CONFIDENCE MIGHT ERODE ALL TOLD MR. WILSON IS CORNERED IN ALMOST EVERY WAY YOU CAN BE ASSERTS DEMOCRATIC CONSULTANT AND POLLSTER PAUL MASLIN BUT DISASTER PROVIDES OPENINGS AS WELL FOR THE GOVERNOR FOR ONE THING THE EARTHQUAKE ACTUALLY WILL HAVE SOME POSITIVE ECONOMIC EFFECTS AS BILLIONS OF DOLLARS IN FEDERAL MONEY POUR INTO THE STATE AND CREATE JOBS REBUILDING ROADS BRIDGES AND APARTMENTS SOME CALIFORNIA CIVIL RIGHTS LEADERS ARE EVEN BEGINNING TO ARGUE THAT PROCESS CAN SALVE SOME OF THE WOUNDS LEFT FROM AN EARLIER DISASTER THE LOS ANGELES RIOTS IF SOME OF THE JOBS ARE FUNNELED TO UNEMPLOYED URBAN WORKERS WHAT'S MORE A TRAGEDY SUCH AS THIS NATURALLY RAISES THE PROFILE OF THE STATE'S CHIEF EXECUTIVE MR. WILSON HAS GOTTEN LOTS OF T. V. TIME COMMISERATING WITH VICTIMS AND DISPENSING DISASTER RELIEF ROY BEHR POLICY DIRECTOR FOR MS. BROWN'S CAMPAIGN ACKNOWLEDGES THAT MAY PRODUCE SOME SHORT TERM BOOST FOR GOVERNOR WILSON AS VOTERS RALLY AROUND THE STATE'S LEADER BUT MR. BEHR AND OTHER DEMOCRATS ALSO MAINTAIN THAT SUCH A BOOST IS LIKELY TO BE SHORT LIVED BECAUSE WHAT THEY CALL MR. WILSON'S BLAND PERSONAL STYLE ISN'T WELL SUITED TO THE TASK OF LIFTING CALIFORNIANS' SPIRITS IN THE LONG RUN MR. WILSON'S SUCCESS MAY WELL TURN MOST ON HIS ABILITY TO GET WASHINGTON TO OPEN ITS COFFERS WIDE TO EASE CALIFORNIANS' PAIN STRANGELY HE IS WELLPOSITIONED TO ACCOMPLISH THAT EVEN THOUGH PRESIDENT CLINTON MAY SOMEDAY FIND GOVERNOR WILSON A POLITICAL RIVAL THE PRESIDENT HAS EVERY REASON TO BE HELPFUL TO CALIFORNIA NOW BECAUSE THE STATE IS CENTRAL TO THE CLINTON ELECTORAL COALITION FOR HIS PART MR. WILSON INSISTS HE'S ONLY INTERESTED IN WORKING THROUGH HIS LATEST PLAGUE SO THAT HE'LL FINALLY GET A CHANCE TO LEAD HIS PEOPLE INTO THE PROMISED LAND HAVING SEEN THIS STATE THROUGH HARD TIMES I HAVE IDEAS ABOUT WHAT WE CAN DO IN GOOD TIMES HE SAYS SPANISH TRADE UNIONS HELD A ONE DAY GENERAL STRIKE DECLARED VICTORY AND CALLED FOR NEW TALKS ON GOVERNMENT JOB SECURITY AND VACATION CUTBACKS TO COMBAT A DEEP RECESSION AND TWENTY THREE PERCENT UNEMPLOYMENT RATE UNIONS CLAIMED NINETY PERCENT SUPPORT FOR THE NATIONWIDE WALKOUT BUT A BUSINESS GROUP PUT IT AT JUST THIRTY PERCENT THE PROTEST FOLLOWED THE BREAKDOWN LATE LAST YEAR OF NEGOTIATIONS BY GOVERNMENT BUSINESS AND UNIONS ON REFORMING SPAIN'S RIGID LABOR MARKET THE GOVERNMENT PROMPTLY TABLED LABOR REFORMS MAKING LAYOFFS EASIER AND ALLOWING HIRING OF APPRENTICES AT LESS THAN THE MINIMUM WAGE IN A BID TO WIDEN ACCESS TO JOBS UNIONS SAID THIS UNDERMINED WORKERS' RIGHTS AND JOB SECURITY THE GOVERNMENT HAS OFFERED TO CONSIDER SOME CHANGES BUT INSISTS THAT SPAIN'S ECONOMIC PROBLEMS BAR IT FROM RETREATING FROM THE LABOR MARKET OVERHAUL TAIWAN MIGHT MAKE SUBIC BAY IN THE PHILIPPINES ITS GATEWAY TO CHINA IF IT IS SHUT OUT OF HONG KONG WHEN THE BRITISH COLONY REVERTS TO CHINESE CONTROL IN NINETEEN NINETY SEVEN AS TAIWAN AND CHINA DON'T OFFICIALLY RECOGNIZE EACH OTHER CONTACTS GO THROUGH OTHER COUNTRIES THE MAIN CONDUIT IS HONG KONG LINKED WITH TAIWAN BY ONE HUNDRED NINETY FIVE FLIGHTS A WEEK UNDER AN AVIATION PACT THAT EXPIRES NEXT YEAR AND THAT CHINA MIGHT OPPOSE RENEWING USING SUBIC BAY ALSO WOULD OFFER TAIWAN LESS EXPENSIVE LABOR INFRASTRUCTURE ON THE FORMER U. S. NAVY BASE AND PROXIMITY TO CHINA OTHER POSSIBLE SITES INCLUDE BANGKOK HANOI MANILA SINGAPORE AND SEOUL AND PUSAN SOUTH KOREA CHINA DEMANDED THAT THE U. S. DROP PLANS TO SET UP RADIO FREE ASIA QUOTE THE REAL OBJECTIVE OF ESTABLISHING THIS STATION IS TO USE THE NEWS MEDIA TO INTERFERE IN THE INTERNAL AFFAIRS OF CHINA AND OTHER ASIAN COUNTRIES AND TO CREATE CONFUSION QUOTE CHINA'S FOREIGN MINISTRY SAID PENDING U. S. LEGISLATION WOULD CREATE RADIO FREE ASIA TO BEAM NEWS INFORMATION AND COMMENTARY TO BURMA CAMBODIA LAOS NORTH KOREA CHINA AND VIETNAM VIETNAMESE OWNED BANKS IN HANOI IN NINETEEN NINETY THREE LENT ONE POINT FOUR BILLION DOLLARS A NINEFOLD JUMP FROM NINETEEN NINETY TWO ACCOUNTING FOR FIFTY EIGHT PERCENT OF ALL NEW CREDITS IN THE COUNTRY THE NUMBER OF PRIVATELY OWNED INDUSTRIAL FIRMS IN THE CAPITAL SOARED TO TWO HUNDRED FORTY FOUR FROM ONE HUNDRED PRIVATE BUSINESSES' SALES SURGED EIGHTY PERCENT TO THREE POINT FIVE MILLION DOLLARS AND NEW INVESTMENT IN THE PRIVATE SECTOR TOTALED FOUR POINT NINE MILLION DOLLARS MEANWHILE HIGHWAY SPECIALISTS AT A HANOI SEMINAR SAID VIETNAM NEEDS AT LEAST TWENTY BILLION DOLLARS TO REBUILD ITS SIXTY SIX THOUSAND MILE ROAD SYSTEM HALF OF WHICH IS IN POOR CONDITION A SIX LANE EXPRESSWAY LINKING HANOI AND NOI BAI INTERNATIONAL AIRPORT IS TO OPEN NEXT MONTH REDUCING CONGESTION AND THE HOURLONG TRIP THE PACE OF EASTERN GERMAN WAGE ADJUSTMENT TO LEVELS IN THE WESTERN REGION SLOWED SIGNIFICANTLY LAST YEAR IN THE EFFORT TO REACH PARITY GRADUALLY IN THE REUNIFIED NATION IN NINETEEN NINETY TWO MOST LABOR AGREEMENTS IN THE EAST RAISED PAY BETWEEN FIFTEEN PERCENT AND TWENTY PERCENT ABOUT DOUBLE THE NINETEEN NINETY THREE INCREASES BETWEEN NINE PERCENT AND TEN PERCENT OVERALL LAST YEAR EASTERN GERMAN WAGES IN NINETEEN NINETY THREE REPRESENTED SEVENTY FIVE PERCENT TO EIGHTY FIVE PERCENT OF THOSE IN THE WEST AS A WALKOUT BY MINERS IN ROMANIA EXPANDED TO INVOLVE SIXTY FIVE THOUSAND PIT WORKERS AN ORGANIZER SAID THE STRIKE WOULD CONTINUE EVEN IF THE COUNTRY'S HIGHEST COURT ORDERED IT HALTED ABOUT SEVENTEEN THOUSAND MINERS LEFT THEIR JOBS THIS WEEK IN THE SOUTHERN CITY OF ROVINARI TO DEMAND A MONTH'S BACK PAY FROM THE CASH STRAPPED GOVERNMENT THE PROTEST EXPANDED NATIONWIDE AS MINERS FROM FIVE OTHER COUNTIES JOINED IN THOUSANDS OF MINERS RALLIED IN THE CITIES OF ROVINARI AND TIRGU JIU THE EUROPEAN UNION IS PREPARING TO ISSUE A SWEEPING CHARTER OF RIGHTS FOR THE NINE MILLION PEOPLE WHO ARE LEGAL RESIDENTS BUT NOT CITIZENS OF E. U. MEMBER STATES THE POLICY PAPER ON IMMIGRATION AND ASYLUM EMPHASIZES ALLOWING SUCH LEGAL E. U. RESIDENTS CONCENTRATED IN GERMANY FRANCE AND BRITAIN TO WORK THROUGHOUT THE TWELVE COUNTRY TRADE BLOC FORMERLY NAMED THE EUROPEAN COMMUNITY THIS COULD BE A HOT ISSUE AS THE E. U. UNEMPLOYMENT RATE IS ALMOST ELEVEN PERCENT THE PROPOSAL ALSO SEEKS TO EASE A LEGAL RESIDENT'S OBTAINING DUAL NATIONALITY OF THE E. U. HOST NATION AS WELL AS THE PERSON'S NATIVE COUNTRY IN AIMING TO INTEGRATE THESE LEGAL RESIDENTS FULLY INTO THE E. U. THE PLAN FOCUSES ON GREATER TRAINING AND EDUCATIONAL OPPORTUNITIES FOR THEM NEW LAWS IN MEMBER COUNTRIES TO GUARANTEE EQUAL RIGHTS AND STEPS TO COUNTER RACISM AND XENOPHOBIA THE CHARTER WHICH THE E. U. COMMISSION COULD ADOPT NEXT MONTH ALSO URGES STEPS TO ASSURE E. U. CITIZENS OF CONTROLS ON NEW IMMIGRATION INCLUDING SANCTIONS ON EMPLOYERS FOR HIRING ILLEGAL IMMIGRANTS AND ORGANIZED POLICIES ON REPATRIATION OF PEOPLE RESIDING ILLEGALLY IN THE E. U. TO SPUR PUBLIC DEMAND FOR AUTOS THAT ARE KINDER TO THE ENVIRONMENT EUROPEAN UNION TAX COMMISSIONER CHRISTIANE SCRIVENER SAID SHE WOULD PROPOSE BY YEAR END AN UNPRECEDENTED SYSTEM OF ROAD TAXES BASED ON CARS' POTENTIAL TO POLLUTE GERMANY AND THE NETHERLANDS SETTING UP A JOINT ARMY CORPS TO STRENGTHEN EUROPE'S POST COLD WAR DEFENSES AGREED TO USE ENGLISH AS THE COMMON LANGUAGE FOR THE FIFTY THOUSAND MEMBER FORCE IN AN EFFORT TO WARD OFF LINGUISTIC DISPUTES THAT MARRED THE START OF A FRANCO GERMAN CORPS TELEDYNE INCORPORATED SUSPENDED ITS CASH DIVIDEND FOR THE FIRST TIME EVER AMID GROWING SIGNS THAT THE COMPANY HAD REACHED A TENTATIVE SETTLEMENT OF LONGSTANDING CIVIL CLAIMS BY THE GOVERNMENT TOTALING WELL OVER ONE HUNDRED MILLION DOLLARS TELEDYNE'S TWO PARAGRAPH ANNOUNCEMENT WHICH CAME AFTER THE END OF TRADING IN NEW YORK MARKETS SAID THE BOARD TOOK THE DECISION YESTERDAY EVENING QUOTE IN ORDER TO STRENGTHEN THE COMPANY'S FINANCIAL AND COMPETITIVE POSITION QUOTE A SPOKESWOMAN DECLINED TO PROVIDE ANY FURTHER DETAILS BUT LAWYERS FAMILIAR WITH THE MATTER SAID THEY BELIEVED THAT THE COMPANY AND THE JUSTICE DEPARTMENT HAD HAMMERED OUT DETAILS OF A TENTATIVE SETTLEMENT OF PENDING CIVIL CLAIMS OF OVERCHARGES FRAUD AND IMPROPER TESTING INVOLVING SALES OF ELECTRONIC RELAYS AND OTHER HARDWARE TO THE PENTAGON DURING THE NINETEEN EIGHTIES A FEDERAL JUDGE ACTING AS AN OFFICIAL INTERMEDIARY IN THE TALKS HAS ASKED BOTH SIDES NOT TO DISCUSS TENTATIVE SETTLEMENT TERMS ONE PERSON SAID SETTLEMENT DISCUSSIONS HAVE INVOLVED AMOUNTS RANGING FROM MORE THAN THIRTY MILLION DOLLARS TO AS MUCH AS ONE HUNDRED THIRTY MILLION DOLLARS ACCORDING TO THESE LAWYERS NEITHER THE COMPANY NOR THE JUSTICE DEPARTMENT WOULD COMMENT THE GOVERNMENT AS PREVIOUSLY REPORTED HAS TAKEN OVER AT LEAST THREE FEDERAL SUITS FILED BY WHISTLEBLOWERS AGAINST TELEDYNE AND THE COMPANY HOPING TO RESOLVE ITS NAGGING LEGAL PROBLEMS HIRED A POLITICALLY SAVVY LOS ANGELES LAW FIRM MONTHS AGO TO HELP NEGOTIATE A COMPREHENSIVE SETTLEMENT OF SUCH CLAIMS SUSPENSION OF THE DIVIDEND WHICH WAS LAST PAID IN NOVEMBER AT A QUARTERLY RATE OF TWENTY CENTS COMES AS A SURPRISE EVEN TO SOME ANALYSTS WHO FOLLOW THE COMPANY CLOSELY LAST YEAR TELEDYNE'S DIVIDEND PAYMENTS AMOUNTED TO FORTY FOUR POINT THREE MILLION DOLLARS IN FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY HAS SAID THAT ONE PENDING CIVIL ACTION ALONE SEEKS MORE THAN NINETY MILLION DOLLARS IN DAMAGES STEMMING FROM WHISTLEBLOWER ALLEGATIONS THAT THE COMPANY DEFRAUDED THE PENTAGON BY KEEPING TWO SETS OF BOOKS ON VARIOUS FIXED PRICE CONTRACTS ANOTHER SUIT AMONG OTHER THINGS SEEKS AT LEAST FORTY ONE POINT SIX MILLION DOLLARS IN DAMAGES FOR PROFITS ALLEGEDLY DERIVED FROM SALES OF IMPROPERLY INSPECTED PARTS COMPANY OFFICIALS HAVE INDICATED THAT THEY WANT TO RESOLVE THE CLAIMS BUT TELEDYNE'S S. E. C. FILINGS CONSISTENTLY HAVE SAID THE COMPANY DIDN'T HAVE RELIABLE ESTIMATES OF POTENTIAL DAMAGES SINCE NINETEEN EIGHTY NINE TELEDYNE HAS BEEN THE FOCUS OF EIGHT SEPARATE FEDERAL CRIMINAL INVESTIGATIONS AND AT LEAST AS MANY CIVIL INQUIRIES TELEDYNE HAS ADMITTED GUILT IN A NUMBER OF INSTANCES AND ALREADY HAS AGREED TO PAY AS MUCH AS FORTY FIVE MILLION DOLLARS IN FINES PENALTIES AND CIVIL SETTLEMENTS IN CERTAIN INSTANCES THE COMPANY SIGNED PLEA AGREEMENTS TO SETTLE CRIMINAL ALLEGATIONS AS A WAY TO AVOID INDICTMENT AND TO REMAIN ELIGIBLE FOR NEW FEDERAL CONTRACTS BUT RESOLUTION OF RELATED CIVIL CLAIMS WAS LEFT FOR LATER NEGOTIATIONS OR LITIGATION U. A. L. CORPORATION POSTED A SUBSTANTIALLY NARROWER LOSS FOR THE FOURTH QUARTER AND SAID ITS TWO BIGGEST UNIONS APPROVED A PLAN FOR EMPLOYEES TO ACQUIRE A MAJORITY STAKE THE PARENT OF UNITED AIRLINES HAD A LOSS OF SIXTY FOUR MILLION DOLLARS OR THREE DOLLARS AND TWO CENTS A SHARE AFTER A TWENTY FIVE MILLION DOLLAR CHARGE RELATED TO REORGANIZING ITS COMPUTER RESERVATIONS SYSTEM THAT COMPARES WITH A YEAR EARLIER LOSS OF TWO HUNDRED TWENTY FOUR MILLION DOLLARS OR NINE DOLLARS AND TWENTY SEVEN CENTS A SHARE INCLUDING A SIXTEEN MILLION DOLLAR RESTRUCTURING CHARGE ON AN OPERATING BASIS U. A. L. SWUNG TO A NINETEEN MILLION DOLLAR PROFIT FROM A THREE HUNDRED TWENTY SIX MILLION DOLLAR LOSS REVENUE ROSE FOURTEEN PERCENT TO THREE POINT SIX FOUR BILLION DOLLARS FROM THREE POINT TWO BILLION DOLLARS BUT APPROVAL OF THE PROPOSED FIVE BILLION DOLLAR EMPLOYEE LED BUYOUT BY UNITED'S PILOTS AND MACHINISTS WAS LESS THAN THE STIRRING ENDORSEMENT EXPECTED BY LABOR LEADERS WHO NEGOTIATED THE DEAL ON THEIR BEHALF AMONG PILOTS WHO VOTED SEVENTY THREE PERCENT FAVORED THE CONCESSIONS FOR EQUITY TRANSACTION BUT FULLY ONE THOUSAND NINE HUNDRED SEVENTY TWO OF UNITED'S EIGHT THOUSAND TWO HUNDRED PILOTS OPPOSED THE MEASURE IN STRAW POLLS MEANWHILE MACHINISTS UNION MEMBERS NARROWLY RATIFIED THE PLAN WITH ONLY FIFTY SIX PERCENT VOTING IN FAVOR UNDER THE PROPOSAL THE PILOTS AND MACHINISTS UNIONS AND THOUSANDS OF NONCONTRACT EMPLOYEES WOULD EXCHANGE WAGE AND WORK RULE CONCESSIONS FOR AN INITIAL FIFTY THREE PERCENT STAKE IN U. A. L. THE PLAN ALSO WOULD PERMIT UNITED TO SET UP A SEPARATE LOWFARE SHORT ROUTE CARRIER WITH LOWER LABOR COSTS MAKING IT A STRONGER COMPETITOR TO NO FRILLS SOUTHWEST AIRLINES AND UPSTART CARRIERS THE VOTE SHOWS THAT RANK AND FILE WORKERS AND UNION LEADERS DIFFER SHARPLY IN THEIR EXPECTATIONS FOR THE AIRLINE INDUSTRY'S RECOVERY THE BROAD OPPOSITION ALSO HIGHLIGHTS HOW DIFFICULT IT WAS TO MELD DIVERSE EMPLOYEE INTERESTS INTO A SINGLE PALATABLE PACKAGE THE FINANCIAL IMPROVEMENT U. A. L. ENJOYED LAST YEAR CAPPED BY YESTERDAY'S RESULTS FUELED EMPLOYEE SKEPTICISM ABOUT THE NEED FOR SIZABLE PAY CUTS AND WORK RULE CHANGES U. A. L. HAD REPEATEDLY INDICATED THAT IF THE UNIONS DIDN'T FIND SOME WAY TO SLASH LABOR COSTS IT WOULD HAVE TO CONTRACT OUT MAINTENANCE WORK AND FLIGHT OPERATIONS THREATENING THOUSANDS OF JOBS WITH U. A. L.'S MOMENTUM GAINING LAST YEAR IT BECAME HARDER FOR SOME WORKERS TO STOMACH THE KINDS OF DEEP WAGE CONCESSIONS PROPOSED IN THE CASE OF MACHINISTS FOR EXAMPLE A MECHANIC EARNING TWENTY ONE DOLLARS AND EIGHTY NINE CENTS AN HOUR WOULD SEE HIS HOURLY WAGES FALL TO NINETEEN DOLLARS AND SEVENTY SEVEN CENTS FOR NEARLY SIX YEARS SAID LEN CIPRESSI A UNITED MECHANIC IN LOS ANGELES WHO OPPOSED THE BUYOUT QUOTE I'M REALLY SKEPTICAL THAT THEY WOULD CONTRACT OUT OUR JOBS QUOTE A NUMBER OF PEOPLE SEEMED TO THINK A BLUFF WAS GOING ON ACKNOWLEDGED DAVE MITCHELL SECRETARY AND TREASURER OF UNITED'S MACHINISTS UNION BUT HE NOTED THAT THE MAJORITY DIDN'T THINK SO THE ALTERNATIVE WOULD HAVE REDUCED THOUSANDS OF JOBS SOME OLDER PILOTS OPPOSED THE DEAL BECAUSE OF THE PLANNED REDUCTION IN COMPANY PENSION CONTRIBUTIONS SAID PILOTS UNION ADVISERS MOREOVER SOME PILOTS FEARED THEY WOULD ENTER RETIREMENT HOLDING NEW U. A. L. STOCK THAT COULD TAKE SOME TIME TO APPRECIATE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY U. A. L. SHARES ROSE SEVENTY FIVE CENTS TO ONE HUNDRED FORTY FIVE DOLLARS AND SEVENTY FIVE CENTS U. A. L. MANAGEMENT AND UNION NEGOTIATORS HAVE SPENT THE PAST COUPLE OF WEEKS HAMMERING OUT DETAILS OF A DEFINITIVE AGREEMENT U. A. L. FACES THE TASK OF SELLING THE TRANSACTION TO SHAREHOLDERS WHO SO FAR HAVE SEEMED LUKEWARM TOWARD THE DEAL SHAREHOLDERS ARE EXPECTED TO VOTE THIS SPRING UNITED SAID ITS FOURTH QUARTER TRAFFIC ROSE A HEALTHY EIGHT POINT FOUR PERCENT WITH THE CARRIER GAINING PASSENGERS AS A RESULT OF THE STRIKE BY AMERICAN AIRLINES FLIGHT ATTENDANTS IN NOVEMBER ALSO UNITED'S YIELD OR REVENUE PER SEAT GREW THREE POINT TWO PERCENT PARTLY REFLECTING HIGHER TICKET PRICES IN A STATEMENT U. A. L. CHAIRMAN STEPHEN M. WOLF CALLED THE FOURTH QUARTER AND NINETEEN NINETY THREE RESULTS A VAST IMPROVEMENT BUT SAID THEY STILL WERE UNACCEPTABLE HE SAID UNITED HAD SEVERE LOSSES ON ITS SHORT DOMESTIC ROUTES AND THE PROPOSED BUYOUT OFFERS PROVISIONS TO FIX THAT PROBLEM SEAGULL ENERGY CORPORATION SAID ITS NINETEEN NINETY FOUR CAPITAL BUDGET WILL JUMP FIFTY FOUR PERCENT TO ONE HUNDRED SEVENTY THREE MILLION DOLLARS FROM ONE HUNDRED TWELVE MILLION DOLLARS IN EXPENDITURES FOR NINETEEN NINETY THREE SEAGULL AN OIL AND NATURAL GAS COMPANY SAID BOTH NUMBERS EXCLUDE PROPERTY ACQUISITIONS THE COMPANY SAID IT WILL INCREASE SPENDING FOR EXPLOITATION TO ONE HUNDRED MILLION DOLLARS FROM SIXTY FOUR MILLION DOLLARS FOR EXPLORATION TO FIFTY MILLION DOLLARS FROM TWENTY SIX MILLION DOLLARS FOR LEASE ACQUISITION TO TEN MILLION DOLLARS FROM EIGHT MILLION DOLLARS AND FOR CORPORATE EXPENDITURES TO THREE MILLION DOLLARS FROM TWO MILLION DOLLARS SPENDING FOR ITS ALASKAN GAS UTILITY AND ITS SOUTHWESTERN U. S. GAS PIPELINE AND GATHERING SYSTEMS WILL DROP TO TEN MILLION DOLLARS FROM TWELVE MILLION DOLLARS IN NINETEEN NINETY THREE DELTA AIR LINES REPORTED A NARROWER LOSS AND AMERICA WEST AIRLINES A PROFIT FOR THE DECEMBER QUARTER RESULTS SHOWING THAT STEEP CUTBACKS ARE BEGINNING TO HELP BOTH CARRIERS ATLANTA BASED DELTA REPORTED A LOSS OF ONE HUNDRED FORTY ONE MILLION DOLLARS OR THREE DOLLARS AND THIRTY SIX CENTS A SHARE FOR ITS FISCAL SECOND QUARTER INCLUDED IN THE QUARTER WAS A ONE TIME PRETAX CHARGE OF ONE HUNDRED TWELVE POINT THREE MILLION DOLLARS FOR THE EARLY RETIREMENT OF NEARLY ONE THOUSAND FIVE HUNDRED WORKERS IN NOVEMBER WITHOUT THAT CHARGE DELTA'S LOSS WOULD HAVE BEEN SEVENTY ONE POINT FOUR MILLION DOLLARS THE LOSS WHILE STILL SUBSTANTIAL IS AN IMPROVEMENT FOR DELTA WHICH A YEAR AGO POSTED A LOSS OF ONE HUNDRED FORTY FOUR POINT FOUR MILLION DOLLARS OR THREE DOLLARS AND FORTY SIX CENTS A SHARE SINCE THEN DELTA HAS SLASHED ITS DIVIDEND REDUCED ITS STAFF CUT CAPITAL SPENDING FURTHER AND DEFERRED MORE AIRCRAFT DELIVERIES IT ALSO WITHDREW FROM SOME UNPROFITABLE SHORT HAUL FLIGHTS REVENUE FOR THE QUARTER INCREASED FIVE PERCENT TO THREE POINT OH TWO BILLION DOLLARS FROM TWO POINT EIGHT SEVEN BILLION DOLLARS EVEN WITH ALL THAT ACTION HOWEVER DELTA STILL HAD AN OPERATING LOSS OF ONE HUNDRED EIGHTY POINT ONE MILLION DOLLARS WHILE MANY OF ITS AIRLINE RIVALS HAD NARROW OPERATING PROFITS DELTA'S EUROPEAN ROUTES BOUGHT FROM PAN AM CORPORATION IN NINETEEN NINETY ONE ARE STILL A FINANCIAL DRAIN ON THE COMPANY AND THE AIRLINE SAID THE PERCENTAGE OF SEATS IT MUST FILL TO BREAK EVEN ROSE TO SIXTY SEVEN POINT TWO FOUR PERCENT FROM SIXTY FOUR POINT TWO SIX PERCENT THE COMPANY HINTED THAT MORE COST CUTTING MAY BE COMING QUOTE NO ONE AT DELTA IS SATISFIED WITH THESE RESULTS AND WE ARE COMMITTED TO IMPROVING OUR FINANCIAL PERFORMANCE QUOTE SAID DELTA'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER RONALD W. ALLEN IN THE FIRST HALF DELTA HAD A LOSS OF EIGHTY POINT SEVEN MILLION DOLLARS OR TWO DOLLARS AND SEVENTY ONE CENTS A SHARE ON REVENUE OF SIX POINT TWO THREE BILLION DOLLARS IN THE YEAR AGO PERIOD DELTA HAD A LOSS OF EIGHT HUNDRED FIFTY SIX POINT SEVEN MILLION DOLLARS OR EIGHTEEN DOLLARS AND THIRTY FOUR CENTS A SHARE ON REVENUE OF FIVE POINT NINE FOUR BILLION DOLLARS THE YEAR AGO RESULTS INCLUDE A FIVE HUNDRED EIGHTY SEVEN POINT ONE MILLION DOLLAR LOSS FROM AN ACCOUNTING CHANGE DELTA SHARES CLOSED YESTERDAY AT FIFTY FOUR POINT THREE SEVEN FIVE DOLLARS UP SIXTY TWO POINT FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMERICA WEST PHOENIX REPORTED NET INCOME OF TEN POINT FOUR MILLION DOLLARS OR THIRTY NINE CENTS A SHARE ON REVENUE OF THREE HUNDRED THIRTY NINE POINT THREE MILLION DOLLARS THAT'S A BIG IMPROVEMENT FOR THE CARRIER WHICH HAS BEEN OPERATING UNDER BANKRUPTCY COURT PROTECTION FOR NEARLY THREE YEARS AND WHICH CLAWED ITS WAY BACK TO PROFITABILITY IN NINETEEN NINETY THREE AMERICA WEST HAS RECEIVED A PROPOSAL FOR A TWO HUNDRED FIFTY MILLION DOLLAR INVESTMENT FROM STEINHARDT GROUP AND HAS SAID THAT OTHER INVESTORS ARE CONSIDERING BIDS THE DEADLINE FOR THOSE PROPOSALS IS FEBRUARY TENTH IN THE YEAR AGO QUARTER AMERICA WEST HAD A NET LOSS OF SEVENTEEN POINT SIX MILLION DOLLARS OR SEVENTY FIVE CENTS A SHARE ON REVENUE OF THREE HUNDRED ONE POINT NINE MILLION DOLLARS FOR THE YEAR NET INCOME WAS THIRTY SEVEN POINT TWO MILLION DOLLARS OR ONE DOLLAR AND FORTY SEVEN CENTS A SHARE ON REVENUE OF ONE POINT THREE ONE BILLION DOLLARS IN NINETEEN NINETY TWO THE AIRLINE HAD A NET LOSS OF ONE HUNDRED THIRTY ONE POINT SEVEN MILLION DOLLARS OR FIVE DOLLARS AND FIFTY EIGHT CENTS A SHARE ON REVENUE OF ONE POINT TWO NINE BILLION DOLLARS REPUBLIC NEW YORK CORPORATION IS WILLING TO PAY DEPOSITORS OF GREEN POINT SAVINGS BANK EVEN MORE THAN ITS PREVIOUS OFFER IF STATE REGULATORS CLARIFIED THE BIDDING RULES GREEN POINT IS IN A BATTLE TO CONVERT FROM A MUTUALLY HELD TO STOCKHOLDER OWNED COMPANY RAISING OVER SEVEN HUNDRED FIFTY MILLION DOLLARS IN EQUITY IN THE PROCESS AFTER STRIPPING GREEN POINT OF SWEETHEART COMPENSATION FOR INSIDERS THE NEW YORK STATE BANKING DEPARTMENT THIS WEEK APPROVED GREEN POINT'S CONVERSION PLANS AND ISSUED IT A NEW CHARTER BUT ON WEDNESDAY A FEDERAL JUDGE ISSUED A TEMPORARY RESTRAINING ORDER AGAINST THE CONVERSION AT THE REQUEST OF CERTAIN DEPOSITORS WHO FILED SUIT CHALLENGING THE CONVERSION YESTERDAY GREEN POINT APPEALED THE RESTRAINING ORDER AND A HEARING WAS SET FOR TODAY STATE REGULATORS REBUFFED REPUBLIC'S OFFER TO PURCHASE GREEN POINT THROUGH A TWO HUNDRED FIFTY MILLION DOLLAR OFFER TO DEPOSITORS CALLING THE OFFER QUOTE ILLEGAL AND IMPERMISSIBLE QUOTE BUT PEOPLE CLOSE TO REPUBLIC SAY REGULATORS NEVER CITED SPECIFIC STATUTES NOW REPUBLIC IS UNDERSTOOD TO BE CONSIDERING SWEETENING ITS OFFER IF IT CAN OBTAIN CLARIFICATION FROM STATE REGULATORS A SPOKESWOMAN FOR NEW YORK STATE BANKING DEPARTMENT DID NOT RETURN CALLS A SPOKESMAN FOR REPUBLIC DECLINED COMMENT A SPOKESMAN FOR GREEN POINT SAID THE BROOKLYN BASED SAVINGS BANK INTENDS TO REMAIN INDEPENDENT IF THE RESTRAINING ORDER ISN'T LIFTED BY TODAY GREEN POINT UNDER A PREVIOUS DEADLINE WOULD BE FORCED TO GIVE SUBSCRIBERS OF ITS SHARES AN OPPORTUNITY TO MODIFY OR RESCIND THEIR COMMITMENTS THAT COULD FURTHER DELAY THE CONVERSION IF A SIGNIFICANT NUMBER OF DEPOSITORS WITHDRAW THEIR APPLICATIONS TO PURCHASE STOCK E. SYSTEMS INCORPORATED SAID E. GENE KEIFFER STEPPED DOWN AS CHIEF EXECUTIVE OFFICER AND INTENDS TO RETIRE IN AUGUST AS CHAIRMAN THE DEFENSE ELECTRONICS CONCERN NAMED ITS PRESIDENT AND CHIEF OPERATING OFFICER A. LOWELL LAWSON TO SUCCEED MR. KEIFFER AS C. E. O. THE COMPANY SAID MR. LAWSON FIFTY SIX YEARS OLD IS ALSO EXPECTED TO SUCCEED MR. KEIFFER AS CHAIRMAN MR. KEIFFER SIXTY FOUR IS TO REMAIN ON THE BOARD AFTER HIS RETIREMENT AS CHAIRMAN INDUSTRY ANALYSTS SAID MR. KEIFFER'S DEPARTURE AS CHIEF EXECUTIVE WASN'T UNEXPECTED AND THEY GENERALLY PRAISED THE COMPANY'S MOVES QUOTE THE BIGGEST POSITIVE IS THE NICE CONTINUITY QUOTE SAID HOWARD RUBEL AN ANALYST AT GOLDMAN SACHS AND COMPANY IN A NEWS RELEASE MR. KEIFFER SAID THE MANAGEMENT CHANGES WERE DESIGNED TO FACILITATE AN ORDERLY TRANSITION AND STREAMLINE MANAGEMENT AT A TIME WHEN THE DEFENSE CONTRACTOR IS SEEKING TO EXPAND INTO LINES OF BUSINESS UNRELATED TO DEFENSE SEPARATELY E. SYSTEMS YESTERDAY REPORTED FOURTH QUARTER NET INCOME OF THIRTY ONE POINT NINE MILLION DOLLARS OR NINETY THREE CENTS A SHARE UP NINE PERCENT FROM TWENTY NINE POINT THREE MILLION DOLLARS OR EIGHTY EIGHT CENTS A SHARE A YEAR EARLIER ANALYSTS HAD PROJECTED EARNINGS OF BETWEEN NINETY FOUR CENTS AND NINETY NINE CENTS A SHARE REVENUE FELL FIVE POINT SIX PERCENT TO FIVE HUNDRED TWENTY THREE POINT SIX MILLION DOLLARS FROM FIVE HUNDRED FIFTY FOUR POINT NINE MILLION DOLLARS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THURSDAY E. SYSTEMS SHARES CLOSED AT FORTY FOUR POINT SIX TWO FIVE DOLLARS DOWN EIGHTY SEVEN POINT FIVE CENTS MIGUEL TAVAO IS A FIFTY TWO YEAR OLD CHAUFFEUR WHO WORKS FOUR DAYS A WEEK FOR A WEALTHY FAMILY IN RIO HE USED TO TAKE THE BUS TO WORK BECAUSE HE COULD NEVER SAVE ENOUGH TO BUY A CAR OF HIS OWN AND FINANCING TERMS WERE PROHIBITIVE TWO YEARS AGO HE HAD HIS EYE ON A VOLKSWAGEN GOL THAT RETAILED FOR NINE THOUSAND NINE HUNDRED SEVENTEEN DOLLARS LAST OCTOBER IN TIME FOR HIS WEDDING ANNIVERSARY HE WENT BACK TO THE DEALER QUOTE I COULDN'T BELIEVE IT THE PRICE HAD COME DOWN TO SEVEN THOUSAND ONE HUNDRED NINETY EIGHT DOLLARS SAYS MR. TAVAO SHE WAS MINE IN SAO PAULO STOCKBROKER RAUL RIBEIRO JUST PURCHASED A FIAT BUT HE PLANS TO LEAVE IT AT THE DEALERSHIP AS A HEDGE AGAINST INFLATION I ALREADY HAVE TWO CARS BUT I DID WELL THIS YEAR AND I THINK IT'S A GOOD PLACE TO PARK MY MONEY WITH INFLATION CREEPING UP YOU DON'T KNOW WHAT MIGHT HAPPEN IN A HEMISPHERE DOMINATED BY RAPID ECONOMIC REFORM BRAZIL IS STILL OSTRACIZED AS THE ODD MAN OUT AMONG LATIN AMERICA'S GOLDEN BOYS INSATIABLE INFLATION STILL FEEDS VORACIOUSLY ON THE UNBALANCED BUDGET AND BADLY NEEDED CONSTITUTIONAL REFORM IS POSTPONED AS A NEW CORRUPTION SCANDAL ENVELOPS KEY LEGISLATORS BUT LAST YEAR WHILE POLITICIANS WERE BICKERING JOCKEYING AND FINGER POINTING THE GROSS DOMESTIC PRODUCT GREW FOUR PERCENT BEHIND THEIR BACKS INDUSTRIAL PRODUCTION WAS UP NINE POINT THREE PERCENT AND MR. RIBEIRO AND MR. TAVAO BOUGHT NEW CARS IN FACT THE PERFORMANCE OF THE AUTO AND AUTO PARTS SECTOR WHICH ACCOUNTS FOR TEN PERCENT OF G. D. P. IS GIVEN CREDIT FOR A GOOD ONE THIRD OF THIS GROWTH VEHICLE PRODUCTION SURGED FORTY THREE PERCENT IN ONE YEAR RECORD CAR SALES BROUGHT THE INDUSTRY FROM THE DOLDRUMS TO ITS GREATEST PERFORMANCE SINCE NINETEEN FIFTY SEVEN THIS INCREASE WAS SPURRED MAINLY BY THE SALE OF POPULAR LOW END CARS WHICH BECAME MORE AFFORDABLE AS THEIR PRICES DROPPED MORE THAN THIRTY PERCENT ON AVERAGE FROM THE PREVIOUS YEAR A PRINCIPAL REASON FOR THE PRICE CUT AND THE SUBSEQUENT REVIVAL OF THE CAR INDUSTRY WAS THE GOVERNMENT'S DECISION TO SIGNIFICANTLY REDUCE BRAZIL'S EXORBITANT AUTOMOTIVE TAX RATES A LABYRINTH OF TAXES FROM MANUFACTURER TO DEALER QUALIFIES BRAZIL AS THE WORLD'S MOST HIGHLY TAXED AUTOMOTIVE INDUSTRY FOR YEARS THESE TAXES WERE PASSED ON TO THE CONSUMER IN HIGHER COSTS BY THE EARLY NINETEEN NINETIES BRAZILIAN CARS WERE SELLING FOR THIRTY PERCENT MORE THAN CARS IN THE U. S. AND COMPANIES FOUND THAT ONLY LUXURY CARS WERE WORTH PRODUCING SALES PLUMMETED ONCE POWERFUL AUTO MAKERS WERE BROUGHT TO THEIR KNEES AND UNHAPPY UNIONS THREATENED NEW ROUNDS OF STRIKES IN MARCH NINETEEN NINETY TWO ON THE BRINK OF DISASTER ALL THE RELEVANT PARTIES CALLED FOR A CRISIS CONVENTION IN A NEGOTIATION PROCESS THAT DETROIT EXECUTIVES WOULD FIND DIZZYING TWENTY EIGHT BRAWLING SELF SERVING FACTIONS OF THE UNIONS THE AUTOMOTIVE INDUSTRY AND VARIOUS GOVERNMENT MINISTRIES HAMMERED OUT AN AGREEMENT OVER FIFTY CLAUSES WERE AGREED TO BUT THE KEY MEASURE WAS A SIX PERCENT CUT IN TAX RATES FOLLOWED BY FURTHER CUTS LAST FEBRUARY IN EXCHANGE FOR THE TAX CUTS AUTO MAKERS AGREED TO CUT PRICES THEY ALSO AGREED TO INVEST HEAVILY IN THE SECTOR TO PRESERVE EMPLOYMENT AND TO INCREASE REAL WAGES BY TWENTY PERCENT OVER THREE YEARS THE UNION PROMISED TO INCREASE PRODUCTIVITY AND TO REFRAIN FROM STRIKING THE INK HADN'T DRIED WHEN CRITICISM OF THE ACCORD POURED IN FROM ALL PARTS OF THE IDEOLOGICAL SPECTRUM THE TAX BREAK WAS THE MAIN LIGHTNING ROD FOR CONTROVERSY AND DISSENSION THE NATIONALIST LEFT ACCUSED THE PACT OF FAVORING CAR COMPANIES ALL OF WHICH ARE FOREIGN MULTINATIONALS WITH SUPPOSEDLY DEEP POCKETS GIVING THEM PREFERENTIAL TREATMENT OVER OTHER MORE NEEDY SECTORS BRAZILIAN TAX AUTHORITIES MADE DIRE PREDICTIONS THAT TAX RECEIPTS WOULD FALL DRAMATICALLY WITH THE LOWER RATES AND INCREASE THE DEFICIT FREE MARKETEERS ARGUED THAT THE ACCORD INVOLVED TOO MUCH GOVERNMENT INTERVENTION AND THAT COMPANIES SHOULD BE LEFT TO FIND THEIR OWN WAY NOW A YEAR DOWN THE ROAD THE PRELIMINARY RESULTS FROM THE ACCORD SHOW BENEFICIARIES ACROSS THE BOARD NOT THE LEAST OF WHOM ARE THE OFT FORGOTTEN BRAZILIAN CONSUMERS THE TEN PERCENT TO FORTY FIVE PERCENT PRICE REDUCTIONS ON POPULAR CARS HELPED BOOST UNIT SALES THIRTY PERCENT TO ONE POINT OH FIVE MILLION VEHICLES LAST YEAR PRODUCTIVITY HAS RISEN TO TWENTY EIGHT CARS FROM NINETEEN CARS AN HOUR SALARIES HAVE INCREASED THIRTY FOUR PERCENT IN TWO YEARS AND AUTO MAKERS HAVE ADDED EIGHT THOUSAND NEW EMPLOYEES TWICE AS MANY AS EXPECTED THE COMPANIES WHICH HAD AGREED TO INVEST ONE BILLION DOLLARS ALREADY HAVE INVESTED ONE THIRD MORE WE INVESTED IN NEW TECHNOLOGY AND MANAGEMENT SYSTEMS FOR THE FIRST TIME IN YEARS SAYS CELSO VARGAS PRESIDENT OF FREIOS VARGAS AN AUTO PARTS COMPANY FROM A POLICY STANDPOINT THE MOST IMPORTANT RESULT IS TO BE FOUND IN THE EFFECT OF THE TAX CUTS WHILE COMBINED TAX RATES ON THE SECTOR HAVE FALLEN TO THIRTY THREE PERCENT THIS YEAR FROM FORTY THREE PERCENT IN NINETEEN NINETY ONE STATE AND FEDERAL TAX REVENUES FROM THE INDUSTRY HAVE INCREASED SEVENTEEN PERCENT SINCE MARCH NINETEEN NINETY TWO THUS THE FEAR OF LOST REVENUES HAS PROVED UNJUSTIFIED AND FURTHER TAX REDUCTIONS WOULD LIKELY YIELD EVEN MORE DRAMATIC RESULTS EVEN AT THE CURRENT LEVEL BRAZILIAN AUTOMOTIVE TAXES ARE STILL THE HIGHEST AND MOST COMPLEX IN THE WORLD WHILE TAX REDUCTION PLAYED A LARGE ROLE IN REVIVING THE AUTO INDUSTRY ANOTHER IMPORTANT STIMULUS TO INCREASED EFFICIENCY AND LOWER PRICES WAS THE HUGE INFLUX OF IMPORTS THAT RESULTED FROM A NEW TRADE POLICY IMPORT TARIFFS ON CARS BEGAN TO DROP TO THIRTY FIVE PERCENT WHERE THEY STAND TODAY FROM SUPER PROTECTIONIST LEVELS OF EIGHTY PERCENT QUOTE THE JAPANESE IMPORTS CERTAINLY MOTIVATED US TO STEP UP OUR INVESTMENTS IN ORDER TO LAUNCH NEW PRODUCTS AT THE LOW AND MID END OF THE MARKET QUOTE SAYS MIGUEL JORGE VICE PRESIDENT OF CORPORATE AFFAIRS AT AUTOLATINA THE JOINT VENTURE BETWEEN FORD AND VOLKSWAGEN HOWEVER THE OVERALL CONDITIONS WERE ALSO CONDUCIVE TO INVESTMENT IT WAS PRECISELY THE COMBINATION OF TAX BREAK AND MARKET OPENING THAT PROVIDED THE HEALTHY BALANCE OF CARROT AND STICK THAT REVIVED THE AUTO INDUSTRY AS FOR THE GOVERNMENT IT INTENDS TO GRADUALLY PULL OUT OF THE ACCORD AND TO LET MARKET FORCES TAKE OVER WHILE CONTINUING TO BRING DOWN IMPORT BARRIERS ACCORDING TO ANTONIO MACIEL NETO FORMER VICE MINISTER OF INDUSTRY UNCERTAINTY CLOUDS THE ECONOMIC LANDSCAPE FOR NINETEEN NINETY FOUR AS ELECTION YEAR POLITICS START TO KICK IN THERE IS NOT EVEN ASSURANCE THAT THE AUTOMOTIVE ACCORD WILL REMAIN IN EFFECT SEVERAL STATE GOVERNMENTS HAVE LAUNCHED AN ATTACK TO REINSTATE THE HIGHER TAXES AND WILL NOT YET ACKNOWLEDGE THAT THEY HAVE ACTUALLY GAINED REVENUE FROM LOWER RATES NEVERTHELESS THE SUCCESS OF THE AUTO MAKERS' INITIATIVE DURING THE MOST TROUBLED PERIOD IN RECENT BRAZILIAN ECONOMIC HISTORY STANDS OUT AS A PROTOTYPE FOR OTHER BUSINESS SECTORS AND HAS BEEN AN EFFECTIVE TOURNIQUET RATHER THAN A BAND AID FOR BRAZIL'S ECONOMIC WOUNDS MS. SIERRA IS DIRECTOR OF PROGRAM DEVELOPMENT FOR THE COUNCIL OF THE AMERICAS STOCK PRICES ROLLED TO HIGHS AS INTEREST RATES FELL BOND PRICES SOARED AND THE DOLLAR FELL SMASHING THROUGH THE RECORD SET JANUARY TWENTY FIRST THE DOW JONES INDUSTRIAL AVERAGE GAINED EIGHTEEN POINT THREE OH POINTS TO THREE THOUSAND NINE HUNDRED TWENTY SIX POINT THREE OH STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX JUMPED THREE POINT EIGHT FIVE TO FOUR HUNDRED SEVENTY SEVEN POINT OH FIVE ALSO A HIGH AND THE NASDAQ COMPOSITE INDEX ROSE FOUR POINT OH EIGHT TO SEVEN HUNDRED NINETY TWO POINT EIGHT EIGHT STOCK ANALYSTS SAID NEWS OF A SHARP DROP IN JOBLESS CLAIMS AND A HEALTHY GAIN IN DURABLE GOODS ORDERS IN DECEMBER HELPED TO SET THE STAGE FOR A RALLY IN ECONOMICALLY SENSITIVE STOCKS BUT THE REAL TRIGGER FOR THE ADVANCE WAS FALLING INTEREST RATES YESTERDAY THE YIELD ON THE TREASURY'S THIRTY YEAR BOND SLIPPED TO SIX POINT TWO SIX PERCENT FROM SIX POINT THREE OH PERCENT AND GOLD PRICES CONSIDERED BY MANY TO BE A HEDGE AGAINST INFLATION FELL SHARPLY MORE IMPORTANTLY THE DOW JONES UTILITY AVERAGE SEEN BY SOME AS A LEADING INDICATOR OF INTEREST RATES ROSE FOR THE SECOND STRAIGHT DAY THE INDEX OF FIFTEEN BLUE CHIP STOCKS SURGED FOUR POINT ONE FIVE POINTS TO TWO HUNDRED TWENTY FIVE POINT SIX ONE ITS BIGGEST SINGLE DAY GAIN IN THREE YEARS QUOTE THE FACT THAT UTILITIES HAVE REBOUNDED HAS MADE PEOPLE FEEL BETTER THE FACT THAT THE FINANCIAL STOCKS HAVE COME BACK HAS MADE PEOPLE FEEL BETTER AND THE FACT THAT THE S. AND P. IS KEEPING PACE WITH THE DOW'S ADVANCE IS ENCOURAGING TO INVESTORS QUOTE SAID STEVEN EINHORN STOCK STRATEGIST AT GOLDMAN SACHS MEANWHILE WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS SAID HE WAS HEARTENED TO SEE THAT YESTERDAY'S ADVANCE WAS BROAD BASED CYCLICALS WERE UP FINANCIALS DID WELL AND EVEN SOME GROWTH STOCKS LIKE PEPSICO HAD A GOOD DAY HE SAID WORLD WIDE STOCK PRICES GAINED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ADDED ONE POINT OH ONE TO ONE HUNDRED FIFTEEN POINT FOUR FIVE STOCK PRICES RALLIED VOLUME TOTALED THREE HUNDRED FORTY SIX POINT THREE MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND THREE HUNDRED NINETY TWO ISSUES ROSE AND SEVEN HUNDRED EIGHTY FOUR FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE ADDED FIVE EIGHTHS POINT OR SIX DOLLARS AND TWENTY FIVE CENTS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN TWO NINE FIVE MARKS AND ONE HUNDRED EIGHT POINT FIVE FIVE YEN COMPARED WITH ONE POINT SEVEN FOUR FIVE OH MARKS AND ONE HUNDRED TEN POINT OH FIVE YEN WEDNESDAY A KEY LAWMAKER ON TELECOMMUNICATIONS ISSUES SAID HE'LL TRY TO FREE UTILITY COMPANIES TO COMPETE MORE EASILY WITH TELEPHONE COMPANIES AND CABLE OPERATORS AT A HOUSE SUBCOMMITTEE HEARING REPRESENTATIVE RICK BOUCHER D. VIRGINIA SAID HE'LL TRY TO AMEND A BILL HE SPONSORED WITH REPRESENTATIVE EDWARD MARKEY D. MASSACHUSETTS THAT WOULD ELIMINATE SOME BARRIERS TO COMPETITION FOR TELEPHONE AND VIDEO SERVICE IN ITS CURRENT FORM THE BILL WOULD PERMIT SOME UTILITIES TO COMPETE IN THOSE MARKETS BUT OTHERS THAT OPERATE AS PART OF MULTISTATE UTILITY HOLDING COMPANIES WOULD REMAIN RESTRICTED UNDER PROVISIONS OF THE PUBLIC UTILITIES HOLDING COMPANY ACT MR. BOUCHER'S AMENDMENT WOULD REMOVE THOSE RESTRICTIONS WHICH AFFECT UTILITIES SERVICING THIRTY PERCENT OF AMERICANS THE MOVE COMES AS ADMINISTRATION OFFICIALS ARE INCREASINGLY CITING ELECTRIC UTILITIES AS A POTENTIAL NEW SOURCE OF COMPETITION TO CABLE AND PHONE COMPANIES MANY OF WHICH ARE JOINING FORCES UTILITIES OFTEN INSTALL FIBER OPTIC LINES ALONG WITH THEIR POWER LINES FOR THEIR OWN INTERNAL COMMUNICATIONS AND LEASE SOME OF THE LINES TO TELEPHONE COMPANIES UNDER THE CLINTON ADMINISTRATION'S TELECOMMUNICATIONS PROPOSALS DETAILED IN A QUOTE WHITE PAPER QUOTE RELEASED YESTERDAY UTILITIES AND OTHER NEW TELECOMMUNICATIONS PROVIDERS COULD BE PROTECTED FROM STATE AND LOCAL RATE REGULATION THE STATES COULD PETITION THE FEDERAL COMMUNICATIONS COMMISSION TO REGAIN CONTROL OVER THE RATES WHILE SOME LARGE UTILITIES ARE PUSHING TO PROVIDE TELECOMMUNICATIONS SERVICES DIRECTLY TO CUSTOMERS OTHERS SIMPLY WANT TO PROTECT THEIR LEASE ARRANGEMENTS FROM REGULATION SAID CHARLES MEEHAN EXECUTIVE DIRECTOR OF THE UTILITIES TELECOMMUNICATIONS COUNCIL GREAT WESTERN FINANCIAL CORPORATION POSTED A NARROWER FOURTH QUARTER LOSS ITS SECOND CONSECUTIVE QUARTERLY DEFICIT AS IT CONTINUES TO DISPOSE OF PROBLEM ASSETS AND SLASH OVERHEAD THE FOURTH QUARTER NET LOSS AT THE NATION'S SECOND LARGEST THRIFT SHRANK TO EIGHTEEN POINT TWO MILLION DOLLARS OR NINETEEN CENTS A SHARE FROM NINETY SEVEN POINT THREE MILLION DOLLARS OR EIGHTY CENTS A SHARE A YEAR EARLIER THE RESULTS INCLUDE LOAN LOSS PROVISIONS OF ONE HUNDRED FORTY NINE MILLION DOLLARS AND CHARGES OF THIRTY MILLION DOLLARS FOR A RESTRUCTURING IN WHICH FIVE HUNDRED PEOPLE OR ABOUT FOURTEEN PERCENT OF ITS HEADQUARTERS STAFF WILL BE LAID OFF THE COMPANY SAID ANALYSTS HAD EXPECTED THE COMPANY TO EARN TWENTY NINE CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INCORPORATED IN NEW YORK STOCK EXCHANGE TRADING THE COMPANY'S STOCK CLOSED AT NINETEEN POINT TWO FIVE UP THIRTY SEVEN POINT FIVE CENTS APPARENTLY ON SPECULATION THAT THE COMPANY WAS PUTTING ITS PROBLEMS BEHIND IT IN NINETEEN NINETY THREE GREAT WESTERN SOLD SOME ONE POINT SIX BILLION DOLLARS IN DISTRESSED PROPERTY AND LOANS WHICH HELPED REDUCE NONPERFORMING ASSETS TO ONE POINT ONE THREE BILLION DOLLARS OR TWO POINT NINE PERCENT OF ASSETS FROM TWO POINT OH ONE BILLION DOLLARS OR FIVE POINT ONE TWO PERCENT OF ASSETS AT THE END OF NINETEEN NINETY TWO THAT PURGE WHICH SOME ANALYSTS SAID WAS OVERDUE STILL LEAVES THE THRIFT HOLDING MORE BAD ASSETS THAN ITS PEERS AT H. F. AHMANSON AND COMPANY ITS LARGER CROSSTOWN RIVAL PROBLEM ASSETS ARE TWO POINT OH EIGHT PERCENT OF TOTAL ASSETS AT GOLDEN WEST FINANCIAL CORPORATION WIDELY CONSIDERED THE NATION'S BEST RUN THRIFT THE LEVEL IS ONE POINT FIVE PERCENT THE EXPECTED LAYOFFS WHICH ARISE FROM A COST CUTTING DRIVE ANNOUNCED LAST AUGUST ARE PRIMARILY IN ADMINISTRATIVE FUNCTIONS NO FURTHER LAYOFFS ARE PLANNED THE SPOKESMAN SAID HEARST CORPORATION'S MAGAZINE DIVISION SAID IT NAMED RONALD A. GALOTTI FORMER PUBLISHER OF VANITY FAIR TO THE NEW POST OF PUBLISHING DIRECTOR OF ESQUIRE AND ESQUIRE GENTLEMAN MR. GALOTTI FORTY FOUR YEARS OLD LEFT VANITY FAIR IN MAY ALTHOUGH THE MAGAZINE'S PUBLISHER ADVANCE PUBLICATIONS INCORPORATED'S CONDE NAST UNIT SAID HE RESIGNED TO PURSUE OTHER INTERESTS COMPANY INSIDERS SAID HE WAS FORCED OUT AFTER CLASHING WITH TOP EXECUTIVES AT CONDE NAST HEARST SAID MR. GALOTTI WILL OVERSEE QUOTE ALL ASPECTS OF THE ADVERTISING SALES EFFORTS MARKETING AND POSITIONING QUOTE OF ESQUIRE AND ESQUIRE GENTLEMAN HEARST SAID ALAN STILES WILL REMAIN AS PUBLISHER OF BOTH ESQUIRE AND ESQUIRE GENTLEMAN BUT DIDN'T ELABORATE ON HOW THEIR ROLES WILL DIFFER OTHER THAN TO SAY MR. GALOTTI WILL FOCUS ON THE RELAUNCH OF ESQUIRE UNDER ITS NEW EDITOR EDWARD KOSNER ESQUIRE HAS ENDURED CONSIDERABLE TURMOIL RECENTLY HAVING ABRUPTLY REPLACED MR. KOSNER'S PREDECESSOR TERRY MCDONELL IN SEPTEMBER MR. KOSNER LONGTIME EDITOR OF NEW YORK MAGAZINE WAS BROUGHT IN TO REVIVE ESQUIRE WHICH HAS BEEN LOSING GROUND TO HIPPER COMPETITIORS SUCH AS CONDE NAST'S G. Q. PUBLISHERS INFORMATION BUREAU REPORTED A NEARLY THIRTEEN PERCENT DROP IN ADVERTISING PAGES AT ESQUIRE FOR NINETEEN NINETY THREE ESQUIRE GENTLEMAN IS A STAND ALONE MAGAZINE STRESSING MEN'S FASHION WHILE THE SIXTY YEAR OLD ESQUIRE CONTINUES TO CARRY A WIDE RANGE OF SERVICE ARTICLES FICTION AND OTHER FEATURES GEARED TO MEN MR. GALOTTI'S APPOINTMENT MARKS HIS RETURN TO HEARST MAGAZINES WHERE HE WAS THE FOUNDING PUBLISHER OF COUNTRY LIVING LAUNCHED IN NINETEEN EIGHTY TWO HE STAYED AT HEARST UNTIL NINETEEN EIGHTY SIX LEAVING TO BECOME PUBLISHER OF CONDE NAST'S MADEMOISELLE JOHN R. REID FIFTY ONE YEARS OLD WAS NAMED VICE PRESIDENT AND CONTROLLER SUCCEEDING JOHN L. CARL WHO WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER EARLIER THIS WEEK MR. REID HAD BEEN VICE PRESIDENT OF AMOCO'S INFORMATION TECHNOLOGY DEPARTMENT SINCE NINETEEN EIGHTY SEVEN JOSEPH S. COMPOFELICE FORTY FIVE YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR THIS TITANIUM DIOXIDE PIGMENT PRODUCER AND FOR ITS AFFILIATE TREMONT CORPORATION MR. COMPOFELICE WAS A VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR BAROID CORPORATION PRIOR TO ITS MERGER WITH DRESSER INDUSTRIES INCORPORATED THIS MONTH A NEW PUBLICATION OUT OF LITTLE ROCK ARKANSAS IS FAST BECOMING A HOT SELLER DESPITE ITS SIX HUNDRED FORTY FIVE DOLLAR AND FIFTY CENT PRICE WHAT MIGHT BE TITLED QUOTE BILL AND HILLARY'S WHITEWATER ADVENTURE QUOTE IS A PACKAGE OF STATE FILINGS RELATED TO THE FAILED MADISON GUARANTY SAVINGS AND LOAN ASSOCIATION THE THRIFT TINY IN COMPARISON TO OTHER CASUALTIES IN THE SAVINGS AND LOAN DEBACLE HAS DRAWN BIG MEDIA ATTENTION MADISON'S FORMER CHAIRMAN AND HIS WIFE WERE PARTNERS WITH THEN GOVERNOR CLINTON AND HILLARY RODHAM CLINTON IN AN ILL FATED LAND INVESTMENT THROUGH WHITEWATER DEVELOPMENT COMPANY AN INDEPENDENT COUNSEL IS INVESTIGATING THAT RELATIONSHIP AND ALSO MAY LOOK INTO WHETHER FUNDS FROM THE THRIFT IMPROPERLY FOUND THEIR WAY INTO MR. CLINTON'S GUBERNATORIAL CAMPAIGN COFFERS LATE LAST YEAR A BATCH OF REPORTERS DESCENDED ON THE ARKANSAS SECURITIES DEPARTMENT IN LITTLE ROCK WHICH OVERSEES THRIFTS AND A VARIETY OF BUSINESSES TO GET DOCUMENTS RELATED TO MADISON AND WHITEWATER THE DEPARTMENT'S FILES CONTAIN COPIES OF MADISON GUARANTY'S CORRESPONDENCE WITH STATE REGULATORS APPLICATIONS FOR PERMISSION TO OPEN BRANCH OFFICES AND OTHER ROUTINE DOCUMENTS REPORTERS HAVE ZEROED IN ON THE THRIFT'S REQUEST TO SELL PREFERRED STOCK WHICH WAS HANDLED BY MRS. CLINTON'S FORMER LAW FIRM IT TAKES EASILY THREE DAYS TO GO THROUGH THE FILINGS SAYS BRUCE BOKONY THE DEPARTMENT'S CHIEF LEGAL COUNSEL THE DOCUMENTS ARE ON MICROFILM AND BECAUSE NOT EVERY PAGE IS SUPPOSED TO BE PUBLIC WE HAVE TO HAVE AN EMPLOYEE SITTING BY THE REPORTER AND GOING THROUGH THE MICROFILM HE SAYS WHEN THE NEW YEAR BROUGHT MORE NEWS COVERAGE AND REPORTERS WE PANICKED MR. BOKONY SAYS SO HE SENT OUT THE MICROFILM FOR TWENTY SETS OF PHOTOCOPIES AND PUT THOSE ON SALE AT THE REGULAR STATE RATE OF TWENTY FIVE CENTS FOR EACH OF THE TWO THOUSAND FIVE HUNDRED EIGHTY TWO PAGES THE AGENCY SOLD SIXTEEN PACKAGES IN LESS THAN TWO WEEKS COLLECTING TEN THOUSAND THREE HUNDRED TWENTY EIGHT DOLLARS DESPITE THE INCOME MR. BOKONY ISN'T HAPPY WITH ALL THE ATTENTION WHY CAN'T YOU GUYS BAND TOGETHER HE ASKS I'VE GOT OTHER THINGS I NEED TO BE DOING I'M BEING SUED AND I'VE GOT TO DEAL WITH THAT QUOTE WOW A SUIT OVER MADISON OH MOANS AN EXASPERATED MR. BOKONY IT HAS NOTHING TO DO WITH THIS WE REGULATE FUNERAL HOMES AND THE FUNERAL HOMES DON'T LIKE WHAT WE'RE DOING THE GOVERNMENT'S THRIFT REGULATOR IS CONSIDERING A MORATORIUM ON APPROVING COMMERCIAL BANK BIDS TO ACQUIRE MUTUAL SAVINGS BANKS THE OFFICE OF THRIFT SUPERVISION IS EXPECTED TO MAKE A DECISION SOON A MORATORIUM WOULD ALLOW THE O. T. S. TO STIFFEN ITS RULES FOR PROTECTING THE FINANCIAL INTERESTS OF MUTUAL SAVINGS BANK DEPOSITORS IN A TAKEOVER A SPOKESMAN SAID THE AGENCY IS RESPONSIBLE FOR REGULATING MOST MUTUAL SAVINGS BANKS WHICH ARE ESSENTIALLY THE SAME AS SAVINGS AND LOAN INSTITUTIONS AND ARE OWNED BY THEIR DEPOSITORS IN A HOUSE BANKING SUBCOMMITTEE'S HEARING WEDNESDAY O. T. S. ACTING DIRECTOR JONATHAN FIECHTER AND SEVERAL SUBCOMMITTEE MEMBERS SAID THEIR BIGGEST CONCERN IS THAT WHEN A COMMERCIAL BANK ACQUIRES A MUTUAL SAVINGS INSTITUTION THE ACQUIRING BANK AND THE SAVINGS BANK'S OFFICERS AND DIRECTORS MAY BENEFIT FINANCIALLY BUT THE DEPOSITORS CAN GET ONLY SHARES IN THE ACQUIRING BANK WHICH AREN'T LIKELY TO APPRECIATE MUCH O. T. S. OFFICIALS SAID IN COMPARISON WITH O. T. S. RULES FOR MERGERS THE AGENCY'S RULES ARE CONSIDERED MORE EFFECTIVE IN GIVING DEPOSITORS THE CHANCE TO SHARE IN GAINS FROM SO CALLED CONVERSIONS IN WHICH DEPOSITOR OWNED MUTUAL SAVINGS BANKS ARE TURNED INTO STOCKHOLDER OWNED SAVINGS BANKS SEPARATELY ANDREW HOVE ACTING CHAIRMAN OF THE FEDERAL DEPOSIT INSURANCE CORPORATION TOLD THE SUBCOMMITTEE THAT THE F. D. I. C. IS CONSIDERING URGING OR REQUIRING FOR CERTAIN MUTUAL SAVINGS BANKS THAT IT REGULATES THAT STOCK PURCHASE RIGHTS BE ISSUED TO DEPOSITORS IN A CONVERSION THEY COULD THEN SELL THE RIGHTS TO SHARE IN ANY QUOTE WINDFALL QUOTE THAT OFFICERS AND DIRECTORS OFTEN GAIN FROM CAPITAL RAISED IN THE CONVERSION MR. HOVE SAID PROCTER AND GAMBLE COMPANY FEELING THE EFFECTS OF SHARP COST CUTTING MOVES BEGUN IN MID NINETEEN NINETY THREE REPORTED A THIRTEEN PERCENT INCREASE IN PROFIT FOR ITS FISCAL SECOND QUARTER DESPITE LOWER DOLLAR SALES AND CONTINUED DIFFICULTIES IN ITS DIAPER AND FOOD UNITS THE CINCINNATI CONSUMER PRODUCTS COMPANY POSTED NET INCOME OF SIX HUNDRED FIFTY THREE MILLION DOLLARS OR NINETY TWO CENTS A SHARE FOR THE PERIOD ENDED DECEMBER THIRTY FIRST UP FROM FIVE HUNDRED SEVENTY SIX MILLION DOLLARS OR EIGHTY ONE CENTS A SHARE SEVERAL ANALYSTS SAID THEY BELIEVE P. AND G'S STOCK WHICH RECENTLY HIT A HISTORIC HIGH OF FIFTY NINE POINT EIGHT SEVEN FIVE DOLLARS UP TWENTY PERCENT FROM LAST JANUARY WILL BE TRADING AROUND SEVENTY DOLLARS WITHIN TWELVE MONTHS AS COST REDUCTIONS KICK IN QUOTE THEY'VE GOT MOMENTUM QUOTE SAID JOSEPH KOZLOFF AN ANALYST WITH SMITH BARNEY SHEARSON WHO RATES THE STOCK A QUOTE BUY QUOTE IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY P. AND G. SHARES WERE UNCHANGED AT FIFTY EIGHT POINT SIX TWO FIVE DOLLARS SALES WERE SEVEN POINT SEVEN NINE BILLION DOLLARS IN THE QUARTER DOWN ZERO POINT SIX PERCENT FROM SEVEN POINT EIGHT FOUR BILLION DOLLARS A YEAR EARLIER THE DECREASE REFLECTED UNFAVORABLE FOREIGN CURRENCY EFFECTS THE DIVESTITURE OF JUICE AND PULP BUSINESSES AND A WORLD WIDE ECONOMIC ENVIRONMENT THAT MADE PRICE INCREASES DIFFICULT P. AND G. SAID HOWEVER UNIT VOLUMES WERE STRONG RISING SIX PERCENT AS A RESULT OF PRICE CUTS AND AGGRESSIVE MARKETING UNIT SALES OF LAUNDRY AND CLEANING PRODUCTS WERE UP NINE PERCENT IN THE U. S. P. AND G. CUT THE PRICE OF LIQUID LAUNDRY DETERGENTS AND FABRIC SOFTENERS LAST SUMMER P. AND G. HAD BETTER RESULTS INTERNATIONALLY THAN IN THE U. S. DOMESTIC VOLUMES ROSE FOUR PERCENT WHILE INTERNATIONAL VOLUMES WERE UP SEVEN PERCENT EARNINGS GOT A BOOST FROM A COST CUTTING PROGRAM ANNOUNCED LAST JULY UNDER WHICH P. AND G. IS CUTTING THIRTEEN THOUSAND JOBS AND SHUTTING ABOUT THIRTY PLANTS P. AND G. CHAIRMAN EDWIN L. ARTZT SAID BOTH THE U. S. AND INTERNATIONAL BUSINESSES SHOWED GOOD EARNINGS GROWTH DUE IN PART TO OUR RESTRUCTURING PROGRAM WHICH IS JUST BEGINNING TO CONTRIBUTE TO OUR EARNINGS PROGRESS THE RESULTS CONTAINED SOME BLEMISHES HOWEVER P. AND G'S THREE POINT THREE BILLION DOLLARS FOOD AND BEVERAGE BUSINESS WHICH INCLUDES PRINGLES SNACKS FOLGERS COFFEE AND DUNCAN HINES CAKE MIXES HAD NO VOLUME GROWTH P. AND G'S ONE POINT FIVE BILLION DOLLARS U. S. DISPOSABLE DIAPER BUSINESS SAW VOLUMES PLUMMET TEN PERCENT FROM A YEAR EARLIER THE COMPANY PLAYED DOWN THE DOMESTIC COMPARISON CITING THE PREVIOUS YEAR'S STRONG SALES FOLLOWING A PRICE CUT HOWEVER A NEW ROUND OF PRICE CUTS IN MAY FOLLOWED BY THE SEPTEMBER LAUNCH OF PREMIUM PRICED PAMPERS ULTRA DRY THINS DIDN'T SEEM TO HELP IN THE QUARTER INTERNATIONAL SALES WHICH REPRESENT TWO THIRDS OF THE COMPANY'S DIAPER SALES ROSE SEVEN PERCENT MERCK AND COMPANY SAID ITS CHICKEN POX VACCINE WAS FAVORABLY REVIEWED LATE YESTERDAY BY A FOOD AND DRUG ADMINISTRATION ADVISORY COMMITTEE THE COMMITTEE FOUND THAT THE DATA PRESENTED BY MERCK SUPPORT THE COMPANY'S CLAIMS THAT THE VACCINE VARIVAX IS SAFE AND EFFICACIOUS IN CHILDREN AND ADULTS ACCORDING TO MERCK THE F. D. A. USUALLY BUT DOESN'T ALWAYS FOLLOW THE RECOMMENDATIONS OF ITS COMMITTEES F. D. A. OFFICIALS COULDN'T BE REACHED THE VACCINE HAD BEEN RECOMMENDED FOR APPROVAL BY AN F. D. A. COMMITTEE FOUR YEARS AGO BUT THE GOVERNMENT AGENCY ASKED THE COMPANY TO PROVIDE ADDITIONAL SAFETY AND EFFECTIVENESS DATA WHICH WAS PRESENTED YESTERDAY SINCE NINETEEN EIGHTY ONE VARIVAX HAS BEEN TESTED IN CLINICAL TRIALS INVOLVING MORE THAN ELEVEN THOUSAND CHILDREN AND ADULTS ACCORDING TO MERCK IF APPROVED VARIVAX WILL BE THE FIRST VACCINE IN THE U. S. AGAINST THE DISEASE WHICH STRIKES AN ESTIMATED THREE POINT FIVE MILLION PEOPLE IN THE U. S. A YEAR THE DISEASE USUALLY CAUSES MILD ALTHOUGH UNCOMFORTABLE SYMPTOMS BUT IN RARE CASES COMPLICATIONS DEVELOP RESULTING IN ABOUT NINE THOUSAND HOSPITALIZATIONS AND BETWEEN FIFTY AND ONE HUNDRED DEATHS A YEAR ACCORDING TO MERCK SOME MEDICAL PROFESSIONALS HAVE QUESTIONED WHETHER THE IMMUNITY CAUSED BY THE VACCINE WILL WANE OVER TIME CAUSING CHICKEN POX TO STRIKE IN ADULTHOOD WHEN IT IS FAR MORE SERIOUS THE CLINICAL STUDIES HAVE FOLLOWED SOME PATIENTS FOR AS LONG AS NINE YEARS AND IMMUNITY DOESN'T APPEAR TO DIMINISH SAID R. GORDON DOUGLAS JUNIOR HEAD OF THE MERCK VACCINE DIVISION IF APPROVED THE DRUG IS EXPECTED TO GENERATE ANNUAL SALES OF ABOUT ONE HUNDRED THIRTY MILLION DOLLARS IN A FEW YEARS SAID RONALD NORDMANN AN ANALYST AT PAINEWEBBER DOCTOR DOUGLAS DECLINED TO COMMENT ON THE ESTIMATE PFIZER INCORPORATED NEW YORK INCREASED ITS QUARTERLY DIVIDEND TO FORTY SEVEN CENTS A SHARE FROM FORTY TWO CENTS PAYABLE MARCH SEVENTEENTH TO STOCK OF RECORD FEBRUARY ELEVENTH PFIZER IS A DIVERSIFIED HEALTH CARE COMPANY IN THE GLOBAL ARMS BUSINESS CONVENTIONAL WISDOM IS BEING STOOD ON ITS HEAD FOR DECADES THE U. S. HAD BEEN RELUCTANT TO SPREAD ITS BEST ARMAMENTS OVER THE GLOBE BUT SINCE THE END OF THE COLD WAR EVEN AS WASHINGTON URGES OTHERS TO SHOW RESTRAINT IN THE NAME OF GLOBAL SECURITY THE U. S. HAS BECOME THE WORLD'S PUSHIEST ARMS MERCHANT FROM SOUTHEAST ASIA TO SWITZERLAND AND ACROSS THE MIDEAST AMERICANS HAVE UNLEASHED A BARRAGE OF WEAPONS EXPORTS LARGELY TO PROP UP THE DECLINING DOMESTIC DEFENSE INDUSTRY AND KEEP AEROSPACE INDUSTRY EMPLOYMENT FROM SLIPPING EVEN MORE RAPIDLY TAKE THE CASE OF MALAYSIA WHICH JUST COMPLETED A DEAL FOR EIGHT SOPHISTICATED JET FIGHTERS MADE BY MCDONNELL DOUGLAS CORPORATION IN DECEMBER NINETEEN NINETY TWO WHILE RETURNING TO KUALA LUMPUR AFTER A TOUR OF THE AIRCRAFT CARRIER U. S. S. KITTY HAWK DEFENSE MINISTER DATUK MOHAMED NAJIB ABDUL RAZAK TOLD U. S. AMBASSADOR JOHN WOLF THAT THE SOUTHEAST ASIAN NATION WOULD ORDER SIX HUNDRED SIXTY MILLION DOLLARS OF RUSSIAN MIG TWENTY NINE R. FIGHTERS MALAYSIA WOULD HAVE BOUGHT AMERICAN HE EXPLAINED BUT QUOTE YOU PROBABLY WOULDN'T BE PREPARED TO RELEASE YOUR HIGH TECH AIRCRAFT QUOTE ALERTED BY THE AMBASSADOR TOP U. S. GOVERNMENT AND CORPORATE OFFICIALS SPRANG INTO ACTION AND IN A MATTER OF MONTHS THEY PERSUADED MALAYSIA TO AUGMENT THE RUSSIAN PURCHASE WITH THE F. SLASH A EIGHTEEN ATTACK JETS THE MALAYSIAN DEAL IS JUST ONE IN A SURGE OF THIRD WORLD PURCHASES OF U. S. ARMS ACCORDING TO FIGURES FROM CONGRESSIONAL RESEARCH SERVICE AMERICAN SALES ACCOUNTED FOR FIFTY SEVEN PERCENT OF THE TWENTY THREE POINT NINE BILLION DOLLARS OF WEAPONS THAT DEVELOPING NATIONS ORDERED IN NINETEEN NINETY TWO IN NINETEEN EIGHTY SEVEN WHEN TOTAL THIRD WORLD ARMS PURCHASES WERE TWICE WHAT THEY ARE TODAY THE U. S. SHARE WAS LESS THAN THIRTEEN PERCENT AND THE CLINTON ADMINISTRATION IS SOLIDLY BEHIND U. S. COMPANIES IN THEIR SALES EFFORTS EVEN AS IT HARBORS VAGUE HOPES ABOUT ENDING ARMS PROLIFERATION A STANCE THAT WAS REITERATED AT THE RECENT U. S. RUSSIAN SUMMIT IN MOSCOW THE TOTAL OF WEAPONS SALES ARRANGED THROUGH WASHINGTON LAST YEAR TOPPED THIRTY FOUR BILLION DOLLARS AN UNPRECEDENTED LEVEL SUCH BOOMING SALES HARK BACK TO THE DAYS OF OVERALL U. S. EXPORT LEADERSHIP BEFORE THE JAPANESE AND LOWER COST THIRD WORLD PRODUCERS HELPED CREATE THIS NATION'S HUGE TRADE DEFICITS IN SUCH AREAS AS AUTOS AND ELECTRONICS BUT THE DRIFT OF U. S. ARMS EXPORT POLICY AS DOMESTIC ECONOMIC CONCERNS TAKE PRECEDENCE OVER GEOPOLITICAL GOALS IS RAISING QUESTIONS ABOUT THE RISKS OF PROLIFERATION WHILE KEEPING U. S. INDUSTRY STRONG AIDS THE NATION'S SECURITY PROVIDING TOP TIER WEAPONS TO CONTENTIOUS NEIGHBORS IN THE WORLD'S HOT SPOTS COULD BE TANTAMOUNT TO STRIKING MATCHES IN A TINDERBOX FURTHER THE U. S. SALES PUSH IS STIRRING COMPETITIVE VIGOR WITHIN RUSSIA AND EUROPE INCREASING CHANCES OF REGIONAL DESTABILIZATION OVERALL GLOBAL DEMAND FOR ARMS HAS SHRUNK AS MANY BUYER NATIONS COME TO GRIPS WITH THEIR OWN ECONOMIC ILLS OR FEEL LESS ANXIOUS BECAUSE OF RELAXED EAST WEST TENSIONS BUT THOSE COUNTRIES THAT ARE BUILDING ARSENALS SUCH AS THAILAND AND TAIWAN OFTEN FIND SELLERS WILLING TO UNDERCUT EACH OTHER OFFERING FRIENDLY TERMS ON EVERYTHING FROM SIDE ARMS TO GUIDED MISSILES NUCLEAR WARHEADS EXCLUDED EVEN SOME U. S. DEFENSE COMPANY EXECUTIVES WORRY THAT GLOBAL SECURITY CONSIDERATIONS ARE GETTING SHORT SHRIFT BECAUSE ARMS EXPORTING COUNTRIES ARE SO PRESSED TO PROTECT JOBS AND THEIR INDUSTRIAL BASE I THINK THE WORLD AS A WHOLE IS PERILOUSLY CLOSE TO THAT LINE SAYS NORMAN AUGUSTINE CHAIRMAN OF MARTIN MARIETTA CORPORATION A LEADING ARMS EXPORTER SOME IN THE U. S. ALSO BELIEVE THAT THE SALES SPREE ISN'T HELPFUL FOR THE LONG TERM HEALTH OF THE AEROSPACE INDUSTRY EXPORTING ARMS IS NOT A GROWING MARKET AND THERE'S SUBSTANTIALLY GROWING COMPETITION SAYS DEPUTY DEFENSE SECRETARY WILLIAM PERRY WHO HAS BEEN TAPPED BY PRESIDENT CLINTON FOR THE TOP PENTAGON POST I'D SAY THIS IS A FAINT HOPE FOR THE COMPANIES ONE DISCONCERTING FEATURE OF THE EXPORT FRENZY IS THAT IT HASN'T HALTED THE SLIDE IN DEFENSE RELATED EMPLOYMENT IN THE U. S. WHICH THE INDUSTRY ESTIMATES AT A RATE OF TWENTY THOUSAND JOBS A MONTH SUCH JOBS HAVE FALLEN TWENTY PERCENT SINCE NINETEEN EIGHTY SEVEN INCLUDING AN ELEVEN PERCENT DROP IN THE PAST YEAR ALONE AND NOW TOTAL ABOUT TWO POINT SEVEN MILLION ONE REASON FOR THE DROP MAY BE THAT ARMS EXPORTS HAVE BEEN ACCOMPANIED BY A SHARP RISE IN THE LEVEL OF OFFSET CONCESSIONS WHICH ALLOW BUYERS TO DO MORE OF THE MANUFACTURING WORK IN THEIR OWN COUNTRIES AND HELP THEM SET UP THEIR OWN CIVILIAN INDUSTRIES BY TRANSFERRING ARMS RELATED TECHNOLOGY OUT OF THE U. S. SUCH CONCESSIONS COMPOUND THE DRAIN ON AMERICAN INDUSTRY THE MALAYSIANS FOR EXAMPLE HAVE SUCCESSFULLY PRESSED THE U. S. AND MCDONNELL DOUGLAS TO REDUCE THE PRICE OF THE F. SLASH A EIGHTEEN AND ARE SEEKING ADVANCED COMPOSITE PARTS TECHNOLOGY WORK ON COMMERCIAL AIRPLANES AND ESTABLISHMENT OF A PILOT TRAINING AND MAINTENANCE CENTER KUALA LUMPUR ALREADY HAS WON FROM MOSCOW GENEROUS PROMISES OF TECHNOLOGY TRANSFER AND PERMISSION TO MAKE AS MUCH AS HALF THE PAYMENTS IN PALM OIL U. S. ARMS MAKERS ARGUE THAT EVEN IF SOME JOBS ARE LOST AMERICAN SECURITY IS SERVED BY DEFENSE CONTRACTORS STAYING COMPETITIVE IN THE WORLD MARKET THE DOGFIGHT OVER MALAYSIA WITH ITS THORNY COMPLEXITIES IN SOME WAYS SEEMS A CRUCIAL ONE FOR U. S. ARMS MERCHANTS FIGHTER JETS WHICH ARE TYPICALLY OUTFITTED WITH MISSILES RADAR AND OTHER SYSTEMS ARE THE WEAPON OF CHOICE IN THE NINETEEN NINETIES AND THE U. S. RUSSIA CONTEST OVER THE JETS IS THEIR FIRST SINCE THE SPLINTERING OF THE SOVIET UNION THE RIVALRY OVER THE MALAYSIAN SALE ALSO SHOWS THE PRESSURE RUSSIA CAN EXERT AS IT TRIES TO REVIVE ITS CRUMBLING EXPORT MACHINERY AND CATCH UP TO AMERICA'S FLOURISHING TRADE THE ELEVENTH HOUR U. S. BID FOR THE MALAYSIAN BUSINESS HAS BEEN VIEWED BY SOME RUSSIANS AS UNWELCOME INTERFERENCE IN A NEARLY COMPLETED TRANSACTION THE RUSSIANS NOW PLEDGE TO REDOUBLE THEIR EXPORT PUSH IN PART BY TRYING TO IMPROVE THE SHABBY AFTER SALE SERVICE THAT HAS LONG SCARED OFF CUSTOMERS IF THE U. S. IS DETERMINED TO INTERFERE SAYS IVAN MATEROV FIRST DEPUTY MINISTER OF FOREIGN ECONOMIC RELATIONS RUSSIA WILL CONTINUE TO SLASH ITS PRICES AND OUR RIVAL WILL HAVE A PROBLEM RUSSIA ALREADY DISCOUNTS ARMS AS MUCH AS FORTY PERCENT BELOW THE COST OF SIMILAR WESTERN WEAPONS U. S. COMPANIES POINT TO THAT DISCOUNTING AND TO NEW RUSSIAN JOINT VENTURES WITH EUROPEAN COMPANIES TO JUSTIFY MORE FEDERAL HELP WITH EXPORTS FOR ALL THE BLUSTER ON BOTH SIDES HOWEVER THE RUSSIAN CAMPAIGN HAS A LONG WAY TO GO RUSSIA WON A HUGE NINETEEN NINETY TWO ARMORED VEHICLE ORDER FROM THE UNITED ARAB EMIRATES BUT THAT HAS BEEN ITS ONLY FOOTHOLD IN THE U. S. DOMINATED MIDDLE EAST MARKET EXCEPT FOR SUCH TRADITIONAL CUSTOMERS AS IRAN WHICH RECENTLY BOUGHT SEVERAL KILO CLASS SUBMARINES INDIA AND CHINA REMAIN MOSCOW'S MOST IMPORTANT CLIENTS BUYING ITS FIGHTERS MISSILES TANKS AND NAVAL SYSTEMS LIKE OTHER SELLERS THE FORMER SOVIETS FIGURE THEIR BEST NEW PROSPECTS ARE IN ASIA WHERE A CHINESE MILITARY BUILDUP HAS STIMULATED REGIONAL CRAVINGS FOR ADVANCED ARMS THE RUSSIANS HOPE MALAYSIA'S PURCHASE OF THE MIGS WILL HELP OPEN ANOTHER TEN ASIAN MARKETS FOR THE JETS SAYS ONE THIRD WORLD ATTACHE IN MOSCOW WHO REPORTS GETTING QUOTE TEN CALLS A DAY QUOTE FROM RUSSIANS OFFERING EVERYTHING FROM RIFLES TO TACTICAL AIRCRAFT THE MALAYSIAN PURCHASE TOO HAS FUELED DEMAND WHEN WORD REACHED PRESIDENT FIDEL RAMOS OF THE PHILIPPINES A USUALLY TIGHTFISTED NATION HE PUBLICLY VOWED TO SPEED THE UPGRADING OF HIS OWN AIR FORCE SIMILAR PRONOUNCEMENTS HAVE COME FROM THAILAND A TRADITIONAL CHINESE BUYER THAT U. S. OFFICIALS SAY IS EYEING NEW RUSSIAN AND U. S. HELICOPTERS AS WELL AS MIGS AND A V. EIGHT B. VERTICAL TAKEOFF FIGHTERS BUILT BY MCDONNELL DOUGLAS AND BRITISH AEROSPACE P. L. C. SINGAPORE IS CLOSE TO ORDERING EITHER LOCKHEED CORPORATION F. SIXTEENS OR F. SLASH A EIGHTEENS AND INDONESIA HAS BEGUN PROWLING FOR U. S. MADE SURVEILLANCE PLANES HERBERT J. LANESE CHIEF FINANCIAL OFFICER FOR MCDONNELL DOUGLAS SAYS THE MALAYSIA SALE OPENS UP A NUMBER OF OPPORTUNITIES FOR US IN SOUTHEAST ASIA THE RUSSIAN PURSUIT OF NEW MARKETS BETRAYS ONE SHORTCOMING IN U. S. POLICY WHILE WASHINGTON HAS AMASSED BILLIONS OF DOLLARS TO HELP REBUILD RUSSIA'S ECONOMY IT HAS FAILED TO WIN A RUSSIAN COMMITMENT TO STEM ARMS EXPORTS IN RETURN EVEN IF SUCH AN AGREEMENT WERE REACHED IT ISN'T CLEAR THAT PRESIDENT BORIS YELTSIN COULD DELIVER RUSSIA'S GOVERNMENT DOESN'T EVEN KNOW WHAT THE REAL STOCKS AND RESERVES ARE SAYS VITALY SHLIKOV AN ADVISER TO RUSSIA'S DEFENSE MINISTRY HE ADDS THAT THERE IS NO UNIFIED OVERSIGHT OF EXPORTS OR OF COMPLIANCE WITH CONVENTIONAL ARMS ACCORDS AND TANKS AND OTHER WEAPONS ARE MADE IN UKRAINE WHOSE PRESIDENT HAS AGREED TO SURRENDER THE FORMER SOVIET REPUBLIC'S NUCLEAR ARSENAL CLEARLY THERE IS STILL PLENTY OF DEMAND FOR ADVANCED ARMS AROUND THE WORLD MANY NATIONS FEEL THAT THEY MUST COUNTER THE BUILDUP OF CONVENTIONAL OR NUCLEAR FORCES BY REGIONAL TROUBLEMAKERS LIKE NORTH KOREA IRAN AND IRAQ OR THAT THEY SIMPLY NEED TO REPLACE AGING WEAPONS ONE NATION OF SPECIAL CONCERN IS CHINA WHICH HAS ABSORBED NOT ONLY RUSSIAN SU TWENTY SEVEN FLANKER FIGHTERS BUT ADVANCED TECHNOLOGY AS WELL CHINA'S RECENT RECRUITMENT OF AS MANY AS ONE THOUSAND RUSSIAN SCIENTISTS AND ENGINEERS COULD HELP BOOST ITS EXPORTING POWER AND LAST WEEK BEIJING SAID IT PLANNED TO DESIGN AND PRODUCE ADVANCED JET FIGHTERS BY THE YEAR TWO THOUSAND ONCE THEY KNOW HOW TO BUILD THE JETS THEY CAN MAKE AS MANY AS THEY NEED SAYS IAN ANTHONY A LEADING RESEARCHER AT THE STOCKHOLM INTERNATIONAL PEACE RESEARCH INSTITUTE WHICH TRACKS ARMS TRANSACTIONS IN THE U. S. A MAJOR ADVANTAGE OF EXPORTING ARMS IS THAT SUCH SALES LEAD TO INCREASED PRODUCTION AND THUS HOLD DOWN THE PER ITEM COST TO THE U. S. MILITARY AND BRIAN ROWE CHAIRMAN OF A GENERAL ELECTRIC COMPANY UNIT THAT BUILDS ENGINES FOR THE F. SLASH A EIGHTEEN AND OTHER WARPLANES ECHOES ANOTHER FAVORED EXPORTER ARGUMENT IF WE DON'T SELL THESE ARMS SOMEONE ELSE WILL THE DANGER IS THAT SEEDS SOWN NOW BY U. S. EXPORTS INCLUDING NEWLY LOOSENED EXPORTS OF MISSILE LAUNCHING TECHNOLOGY COULD GERMINATE INTO ARMS CONTROL LAND MINES THE NEW KILLING POWER BRANDISHED BY MORE NATIONS HARDLY ENSURES THAT THEY WILL BECOME MORE SOPHISTICATED IN RESOLVING REGIONAL DISPUTES PEACEFULLY IT'S A VERY VOLATILE WORLD SAYS BERNARD SCHWARTZ CHAIRMAN OF LORAL CORPORATION THE DEFENSE ELECTRONICS COMPANY QUOTE I DON'T THINK THE LESSONS OF YUGOSLAVIA ARE LOST ON MANY COUNTRIES QUOTE HE ADDS BUT MANY EXPERTS OUTSIDE THE INDUSTRY BELIEVE THAT WITH THE COLD WAR CONSIGNED TO HISTORY THE U. S. NEEDS A NEW POLICY OF ARMS EXPORT RESTRAINT TO GUIDE IT THE CONSERVATIVE HUDSON INSTITUTE'S WILLIAM SCHNEIDER JUNIOR PRESIDENT REAGAN'S UNDERSECRETARY OF STATE FOR SECURITY ASSISTANCE SCIENCE AND TECHNOLOGY WARNS THAT TODAY'S PRECISION GUIDED CONVENTIONAL ARMS CAN DO THE KIND OF DAMAGE ATTRIBUTED TO WEAPONS OF MASS DESTRUCTION SUCH AS ATOMIC BOMBS AND CHEMICAL WEAPONS WITH THE RIGHT ACQUISITIONS COUNTRIES WITH VERY SMALL FORCES CAN BE VERY EFFECTIVE NATALIE GOLDRING DEPUTY DIRECTOR OF THE BRITISH AMERICAN SECURITY INFORMATION COUNCIL AN INDEPENDENT RESEARCH GROUP BASED IN WASHINGTON WORRIES THAT THE U. S. IS SELLING WEAPONS AS SOPHISTICATED AS ANYTHING IN THE U. S. ARSENAL SALES SHOULDN'T BE CONDUCTED TODAY AS IF WE KNOW WHICH COUNTRIES WILL BE STABLE IN TWO THOUSAND THREE OR TWO THOUSAND THIRTEEN MS. GOLDRING SAYS IF U. S. POLICY WERE DEDICATED TO ENCOURAGING ARMS CUSTOMERS TO AVERT CONFLICTS PEOPLE WOULD BE LESS CONCERNED SAYS DOCTOR ANTHONY OF THE STOCKHOLM INSTITUTE QUOTE BUT UNLESS THERE'S A REASON TO PREVENT THE SALE YOU JUST GO AHEAD BECAUSE YOU WANT THE COMMERCIAL ADVANCES YOU WANT THE MONEY QUOTE THE PROMISE OF KEEPING U. S. WORKERS EMPLOYED AS MUCH AS REVENUE WAS AT THE HEART OF THE BIGGEST WEAPONS EXPORTS DEALS OF LATE PRESIDENT BUSH IN HIS CAMPAIGN AGAINST THEN GOVERNOR CLINTON UNVEILED TWO PRE ELECTION DEALS DIRECTLY TO DEFENSE WORKERS HE FIRST TOLD A CHEERING SAINT LOUIS CROWD THAT MCDONNELL DOUGLAS WOULD BE ALLOWED TO SELL NINE BILLION DOLLARS OF ADVANCED F. FIFTEEN FIGHTERS TO SAUDI ARABIA THE SAUDIS THEIR SPENDING POWER IMPAIRED BY LOWER OIL PRICES CURRENTLY ARE DISCUSSING THE RESTRUCTURING OF THAT TRANSACTION THEN HE ANNOUNCED TO A JUBILANT THRONG AT A FORT WORTH TEXAS F. SIXTEEN FIGHTER PLANT THEN OWNED BY GENERAL DYNAMICS THAT HE WOULD OVERTURN AN ELEVEN YEAR OLD U. S. BAN ON SALES OF ADVANCED FIGHTERS TO TAIWAN AND SELL IT ONE HUNDRED FIFTY OF THOSE JETS FOR SIX BILLION DOLLARS LOCKHEED SUBSEQUENTLY BOUGHT THE PLANT AND THE F. SIXTEEN LINE IN DECEMBER NINETEEN NINETY TWO FROM GENERAL DYNAMICS CORPORATION THE DEAL ALSO ILLUSTRATES TAIWAN'S INFLUENCE IN THE WORLD OF ARMS PURCHASES WHEN SOME U. S. OPPOSITION WAS EXPRESSED ABOUT WORK AND TECHNOLOGY BEING SHIFTED TO TAIWAN TAIPEI LAWMAKERS CHALLENGED THE CONTRACT TERMS BRIEFLY BLOCKED PAYMENTS AND THREATENED TO HAVE THE MILITARY OFFER A BIGGER ORDER TO DASSAULT AVIATION S. A. OF FRANCE MAKER OF THE MIRAGE TWO THOUSAND TO FIVE FIGHTER THE DEAL WAS COMPLETED A YEAR LATER THE TAIWANESE HAD WON AN AGREEMENT FOR ONE POINT ONE BILLION DOLLARS IN CONTRACTS TO MAKE PARTS FOR AND MAINTAIN THE F. SIXTEENS THE TAIWANESE ALSO HAVE BEEN TOLD THEY CAN BUY HARPOON ANTISHIP MISSILES CHINA WAS POLITICALLY ALIENATED BY THE HUGE TAIWAN F. SIXTEEN DEAL WHICH FAR SURPASSED THE VOLUME OF RUSSIAN JETS BOUGHT BY THE CHINESE SO FAR BEIJING BOYCOTTED THE ARMS CONTROL TALKS INITIATED BY MR. BUSH AMONG FIVE WORLD POWERS RUSSIA BRITAIN AND FRANCE ARE THE OTHERS TO RESTRAIN SELLERS AFTER THE PERSIAN GULF WAR SINCE DROPPING OUT CHINA HAS EXPANDED SALES OF LONG RANGE MISSILES TO IRAN AND STEPPED UP EXPORTS OF SENSITIVE TECHNOLOGIES TO NORTH KOREA AND PAKISTAN U. S. OFFICIALS SAY EVEN AT SAM'S BULLDOG BAR IN FORT WORTH A FAVORITE OF LOCKHEED WORKERS THE SHINE HAS FADED FROM THE TAIWAN SALE OWNER EDRIS SAM COGBURN REMEMBERS HOW JOYOUS WORKERS FLOCKED TO HEAR MR. BUSH ANNOUNCE THE DEAL NOW SHE SAYS SOME ARE FEELING DOWN ABOUT CONTINUING LAYOFFS AND THE CANCELLATION OF TWO HUNDRED ORDERS FOR F. SIXTEENS BY THE U. S. AND BY PAKISTAN IN WASHINGTON REGRETS OVER THE TAIWAN F. SIXTEEN CONTRACT HAVE LED SOME PENTAGON OFFICIALS TO CONTEMPLATE RENEGING WHICH WOULD GAIN CHINA'S APPROVAL AND PERHAPS SECURE ITS HELP IN PERSUADING NORTH KOREA TO HALT ITS NUCLEAR PROGRAM SUCH A FLIP FLOP WOULD DOUBTLESS HORRIFY BOTH TEXAS AND TAIWAN AND OPEN THE U. S. TO CRITICISM FOR A HASTILY PLANNED SALE IN THE FIRST PLACE THE U. S. APPROACH TO ARMS EXPORTS HAS BEEN AWASH IN CONTRADICTIONS EVER SINCE THE NATION SHOWED OFF ITS WEAPONS MAKING PROWESS IN THE GULF WAR CREATING A HUGE SWELL IN DEMAND FOR U. S. SYSTEMS SUCH AS PATRIOT MISSILE DEFENSES AND M. ONE A ONE TANKS WHILE CONTRADICTIONS OVER PROLIFERATION POLICY EMERGED DURING THE BUSH YEARS THE CLINTON ADMINISTRATION HAS BEEN SLOW EVEN TO ASSESS ITS CHOICES IN DEVISING AN ARMS CONTROL AGENDA A MAJOR PENTAGON REVIEW OF EXPORTS AND ACQUISITIONS IS IN ITS EARLY STAGES AND LYNN E. DAVIS UNDERSECRETARY OF STATE FOR INTERNATIONAL SECURITY AFFAIRS DECLINES TO BE INTERVIEWED ABOUT CONVENTIONAL ARMS TRANSFERS A SPOKESWOMAN SAYS A POLICY IS NOT YET FINALIZED ANDREW J. PIERRE OF THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE A PRIVATELY FUNDED THINK TANK SAYS HE CAN SEE THE PROBLEM FACING BILL CLINTON ON ONE SIDE OF THE BRAIN HE'S GOT NONPROLIFERATION ON THE OTHER IT'S AMERICAN ECONOMIC COMPETITIVENESS AND SUPPORT FOR INDUSTRY THE ADMINISTRATION SWITCHED POSITIONS BEFORE HELPING TO KILL INDUSTRY BACKED LEGISLATION TO PROVIDE TWENTY FIVE MILLION DOLLARS THAT COULD HAVE PAID FOR GUARANTEES TO LEVERAGE ONE BILLION DOLLARS OF WEAPONS EXPORT LOANS IN ANOTHER CASE THE ADMINISTRATION MISJUDGED CONGRESSIONAL SENTIMENT AND BACKED DOWN FROM ITS PROPOSED BAN ON THE USE OF FOUR BILLION DOLLARS IN ANNUAL FOREIGN MILITARY AID FOR CERTAIN EXPORTS THE INDUSTRY CAN ARRANGE WITHOUT FEDERAL INTERCESSION TO TEN COUNTRIES INCLUDING PORTUGAL ISRAEL EGYPT TURKEY GREECE AND JORDAN TYPICALLY THE PENTAGON AND THE STATE DEPARTMENT MUST APPROVE SALES OF MILITARY GEAR EVEN AS THE PENTAGON'S MR. PERRY WAS DECRYING OVER DEPENDENCE ON EXPORTS COMMERCE SECRETARY RON BROWN WAS AT THE PARIS AIR SHOW TOUTING U. S. PRODUCTS TO MALAYSIA INDONESIA AND SAUDI ARABIA THE PENTAGON RECENTLY REVERSED A STAND AGAINST SENDING WEAPONS AND PERSONNEL TO SUCH EXHIBITIONS AND HAS AUTHORIZED A LARGE U. S. PRESENCE AT THE SINGAPORE SHOW NEXT MONTH AND SECRETARY OF STATE WARREN CHRISTOPHER HAS WON CORPORATE PRAISE FOR AFFIRMING SUPPORT FOR U. S. EXPORTS ONCE THE U. S. AMBASSADOR WOULD ONLY GO IN WITH ALL HIS FORCES AND LOBBY FOR A U. S. DEFENSE COMPANY WHEN A TEN MILLION DOLLAR CONTRACT WAS AT STAKE SAYS MOSHE HOROWITZ VICE PRESIDENT OF ISRAEL'S TADIRAN LIMITED A TELECOMMUNICATIONS AND ELECTRONICS MAKER QUOTE NOW THEY GO FULL FORCE ON EVERY BID EVEN FOR HALF A MILLION IT ISN'T JUST LOCAL AMBASSADORS WHO COME OUT SWINGING FOR A SALE WHEN LITTON INDUSTRIES INCORPORATED WAS COMPETING LAST YEAR WITH G. E. C. MARCONI A UNIT OF GENERAL ELECTRIC COMPANY OF BRITAIN TO SELL TO GREECE AN ADVANCED ELECTRONIC WARFARE SYSTEM FOR NEW F. SIXTEENS MESSRS BROWN AND CHRISTOPHER WROTE TO ATHENS PLUGGING THE U. S. PRODUCT LITTON LANDED THE ONE HUNDRED TWENTY TWO MILLION DOLLAR DEAL SUCH SUPPORT ELATES THE INDUSTRY OF COURSE SUDDENLY WE HAVE A GOVERNMENT THAT WILL ACTUALLY HELP YOU IN A TRANSACTION SAYS DAVID DANJCZEK INTERNATIONAL VICE PRESIDENT FOR LITTON IN MANY BOARDROOMS IT ISN'T UNUSUAL TO FIND PLANS FOR DOUBLING EXPORTS OVER THE NEXT FIVE YEARS EXPORTS ARE AN IMPORTANT CUSHION AND TARGET AS DOMESTIC SPENDING ERODES SAYS EDMUND WOOLLEN A VICE PRESIDENT AT RAYTHEON COMPANY PURVEYOR OF THE PATRIOT AND AIRCRAFT FIRED MISSILES THE SUPPORT COMPLEMENTS EFFORTS BY THE CONTRACTORS THEMSELVES OFTEN IN THE AREA OF CUSTOMER FINANCING WHEN LITTON COMPETED FOR A SHIP REFURBISHMENT CONTRACT IN VENEZUELA IN NINETEEN NINETY TWO THE COMPANY HAD TO INCLUDE IN ITS BID A LONG TERM FINANCING PROPOSAL LITTON SUGGESTED THAT VENEZUELA PAY FOR THE TWO HUNDRED MILLION DOLLARS IN WORK BY FLOATING COMMERCIAL EUROBONDS ACCORDING TO PEOPLE FAMILIAR WITH THE DEAL LITTON WAS SELECTED THE CURRENT EXPORT BOOM MAY PROVIDE AT LEAST A SHORT TERM SAFETY NET FOR U. S. COMPANIES BY BEEFING UP PROFITS AND STOCK PRICES AS THEY DEAL WITH THE PRECIPITOUS DROP IN WASHINGTON'S DEFENSE SPENDING BUT SOME IN CONGRESS ARE RAISING QUESTIONS ABOUT THE LONGER TERM ECONOMIC DAMAGE THAT COULD BE WROUGHT AS CONCESSION LADEN ARMS DEALS SHIFT ENORMOUS VOLUMES OF WORK AND KNOW HOW OVERSEAS THE GENERAL ACCOUNTING OFFICE FOR INSTANCE HAS FOUND THAT U. S. DEFENSE COMPANIES ARE COMMONLY OFFERING CASH TO U. S. BUYERS OF NONDEFENSE FOREIGN GOODS AS A WAY TO GIVE PRODUCTS AN EDGE OVERSEAS DEMOCRATIC SENATOR RUSSELL D. FEINGOLD OF WISCONSIN WON SENATE APPROVAL THIS WEEK FOR HIS PROPOSAL FOR MANDATORY REPORTING TO CONGRESS ON ANY ARMS EXPORTS INCLUDING WHAT HE CALLS KICKBACKS THAT UNFAIRLY DIVERT BUSINESS AWAY FROM U. S. BASED PRODUCERS TYPICALLY WEAPONS CONTRACTS CALL FOR OFFSETS OR COUNTERTRADE WORTH SIXTY PERCENT TO ONE HUNDRED PERCENT OF THE VALUE OF THE WEAPONS PURCHASED AT LEAST TWICE THE AMOUNT OF A FEW YEARS AGO BECAUSE OFFSETS AREN'T MONITORED RELATED JOB LOSSES IN THE U. S. CAN'T BE TALLIED THEY MORE OFTEN AFFECT SMALL SUPPLIERS THOUGH WHOSE WORK IS EASIER TO DUPLICATE QUOTE THE LITTLE GUY IS GOING TO GET HURT QUOTE CONCEDES G. E.'S MR. ROWE FOR A DECADE UNREGULATED CONCESSIONS HAVE PERMITTED BUYERS TO MAKE MORE PARTS AND DO MORE ASSEMBLY WORK TODAY SOME COUNTRIES CAN MAKE THEIR OWN VERSIONS OF WEAPONS BOUGHT FROM THE U. S. YEARS AGO AND THEY ARE NOW EAGER TO EXPORT TOO AT A TUSAS AEROSPACE INDUSTRY INCORPORATED PLANT NEAR ANKARA TURKEY WHERE GENERAL DYNAMICS AND THE U. S. GOVERNMENT HELPED SET UP F. SIXTEEN COPRODUCTION IN THE NINETEEN EIGHTIES WORKERS ARE ASSEMBLING FORTY OF THE JETS FOR EXPORT TO EGYPT IN EGYPT OFFICIALS WOULD LIKE TO SELL TANKS PRODUCED AT ITS M. ONE A ONE ABRAMS TANK PLANT BUT BECAUSE COSTS ARE TOO HIGH FOR IT TO SUCCESSFULLY EXPORT THE TANKS CAIRO IS SEEKING U. S. AID TO CONVERT THE PLANT TO MAKE TRUCKS OR BUSES THE G. A. O. HAS FOUND TEN CASES IN WHICH THE JAPANESE HAD LEARNED TO MAKE BRAKES LANDING GEAR INSTRUMENTS AND OTHER PARTS FOR THE F. FIFTEENS THEY ASSEMBLE THEN THEY ARRANGED TO SUPPLY THE EQUIPMENT TO U. S. MAKERS OF AIRLINERS IN ONE CASE FOR THE NEW BOEING COMPANY SEVEN HUNDRED SEVENTY SEVEN AIRCRAFT IN SAUDI ARABIA WHERE U. S. COMPANIES HAVE WON ORDERS FOR THIRTY POINT EIGHT BILLION DOLLARS IN WEAPONS OVER THE PAST THREE YEARS GENERAL MOTORS CORPORATION'S HUGHES AIRCRAFT COMPANY IS NEAR AN AGREEMENT TO BUILD A PLANT PRODUCING FIVE HUNDRED THOUSAND CAR BATTERIES ANNUALLY SAY PEOPLE FAMILIAR WITH THE ARRANGEMENTS THE PLANT WOULD BE AN INDIRECT OFFSET TO HUGHES'S NINE HUNDRED FIFTY MILLION DOLLAR SALE OF A PEACE SHIELD AIR DEFENSE SYSTEM WESTINGHOUSE ELECTRIC CORPORATION A MAJOR PRODUCER OF RADAR AND MILITARY AIR TRAFFIC CONTROL SYSTEMS HAS PROVIDED THE SAUDIS WITH TECHNOLOGY TO SET UP AN ADVANCED ELECTRONICS COMPANY I UNDERSTAND IT'S AN EMOTIONAL ISSUE SAYS J. T. TYMANN INTERNATIONAL SALES CHIEF AT WESTINGHOUSE ELECTRONICS BUT THE U. S. CAN'T BE SOME SORT OF ISLAND OF EXPORTS AND SAY PEOPLE OUGHT TO BUY OUR PRODUCTS HE SAYS WE HAVE TO GET INTO INTERNATIONAL ALLIANCES AND COOPERATION STILL WHEN SUCH OFFSET ARRANGEMENTS HELP OTHER COUNTRIES SELL THEIR OWN NONDEFENSE GOODS IN THE U. S. THEY HAVE DRAWN FIRE FROM CONGRESSIONAL INVESTIGATORS AND LAWMAKERS JOHN RICHARDS A SENIOR COMMERCE DEPARTMENT OFFICIAL SAYS THE GOVERNMENT SHOULDN'T INHIBIT FOREIGN SALES BUT WHEN YOU GIVE AWAY ONE HUNDRED PERCENT OFFSETS YOU'RE NOT GETTING THE FULL BENEFIT AT HOME YET EFFORTS TO REIN IN OFFSETS HAVE FLOPPED AND A NINETEEN NINETY TWO LAW REQUIRING COMPANIES TO REPORT OFFSETS IN EXCESS OF FIVE MILLION DOLLARS HAS YET TO BE ENFORCED EVEN WHILE EXPORTS INCREASE U. S. INDUSTRY EFFORTS TO LICENSE THIRD WORLD CLIENTS TO USE AMERICAN MILITARY TECHNOLOGY HAVE EXPLODED ONE SENIOR FEDERAL OFFICIAL ESTIMATES THAT MORE THAN SEVEN THOUSAND SUCH EXPORT LICENSE APPLICATIONS WERE EXPECTED TO BE FILED LAST YEAR WITH THE STATE DEPARTMENT WHICH RECEIVED ALMOST NO SUCH APPLICATIONS BEFORE NINETEEN NINETY QUOTE IT HAS GONE CRAZY OVER THE LAST THREE YEARS QUOTE SAYS THE OFFICIAL NOTING THAT U. S. COMPANIES USUALLY PLACE THE TECHNOLOGY WHERE IT CAN BE DEVELOPED INEXPENSIVELY SO THEY CAN PROFIT FROM GLOBAL RESALE BURIED AMONG THE APPLICATIONS LAST YEAR WAS ONE FROM LORAL SEEKING TO EXPORT TO ISRAEL THE LASER TARGET DESIGNATOR USED ON F. SLASH A EIGHTEENS U. S. GOVERNMENT AND INDUSTRY OFFICIALS SAY THE LICENSE WAS APPROVED DESPITE OBJECTIONS FROM SOME PENTAGON REVIEWERS AND THE TECHNOLOGY WILL BE COMMINGLED WITH ISRAELI RESEARCHED DEVICES FOR RESALE TO THIRD PARTIES PENTAGON REGULATORS WINCED AGAIN AT A MARTIN MARIETTA APPLICATION SINCE APPROVED TO SEND TO ISRAEL'S BVR TECHNOLOGIES LIMITED THE ADVANCED ELECTRONIC RANGES USED TO TRAIN AND TEST PILOTS DURING MANEUVERS MARTIN MARIETTA SAYS THE U. S. KNOWLEDGE IS OLD AND EXPORTING IT WON'T COMPROMISE SECURITY OR JOBS RATHER THE NEW ISRAELI CAPABILITY WILL ENHANCE SALES FOR A BVR SLASH MARTIN MARIETTA JOINT VENTURE MARTIN MARIETTA SAYS SOME CRITICS IN THE PENTAGON ARGUE THAT AT A MINIMUM ISRAEL WILL EMERGE AS A NEW RIVAL IN A CROWDED MARKET ISRAELI CATALOGS ARE LOADED WITH WEAPONS DERIVED FROM U. S. SYSTEMS THEY SAY AND ISRAEL HAS SOLD ITS BORROWED SKILLS TO NATIONS OUT OF U. S. FAVOR RECENTLY THE DIRECTOR OF CENTRAL INTELLIGENCE JAMES WOOLSEY ADVISED A SENATE COMMITTEE OF SEVERAL BILLION DOLLARS IN ISRAELI TECHNOLOGY SALES TO CHINA OVER A DECADE UNEASINESS OVER ISRAELI DEALINGS HAS INTENSIFIED WITH ITS DECISION YESTERDAY TO BUY TWO BILLION DOLLARS OF MCDONNELL DOUGLAS F. FIFTEENS IN THE FIRST BIG EXPORT SALE EXPECTED TO BE APPROVED UNDER PRESIDENT CLINTON IN A HEATED CONTEST AGAINST LOCKHEED AND ITS F. SIXTEEN FIGHTER BOTH COMPANIES STRESSED A WILLINGNESS TO PLACE EXPANDED AEROSPACE SUBCONTRACTS IN ISRAEL COMING ON THE HEELS OF THE MIDEAST PEACE TALKS THE SALE IS CONTROVERSIAL BECAUSE ISRAEL WILL BUY THE PLANES WITH ONE POINT EIGHT BILLION DOLLARS IN ANNUAL U. S. GRANTS ISRAEL'S ESTIMATED TWENTY ONE BILLION DOLLARS IN PLANNED PROCUREMENTS THROUGH NINETEEN NINETY EIGHT TRANSFIX AMERICAN SELLERS BUT ISRAEL ALSO HAS BEEN A SUCCESSFUL EXPORTER IT HAS PROVIDED UPGRADED EQUIPMENT FOR THE CHILEAN AIR FORCE FOR SOME ROMANIAN JETS FOR INDIA'S MIG TWENTY ONES AND FOR CZECHOSLOVAK TRAINER JETS SOLD TO THAILAND IN NINETEEN NINETY TWO ISRAELIS ALSO HAVE SOLD MISSILE WARNING SYSTEMS TO THE DUTCH AND GERMANS A RECENT U. S. INDUSTRY STUDY SAYS THE ISRAELIS ARE IN AGGRESSIVE PURSUIT OF GLOBAL ELECTRONICS AND SENSOR WORK AND A BEST BET FOR SUPPLIERS SEEKING ISRAELI CONTRACTS IS TO TEAM UP WITH COMPANIES THERE THE MIDEAST IS WIDELY PERCEIVED AS THE POTENTIAL WATERLOO IN ANY U. S. EFFORT TO RESTRAIN PROLIFERATION AS THE GULF WAR ENDED IN NINETEEN NINETY ONE CONGRESS AND MR. BUSH SET OUT TO CURB U. S. ARMS SALES THERE BUT SINCE THEN THE U. S. HAS BEEN ON A FORTY THREE POINT NINE BILLION DOLLAR SELLING SPREE ACCORDING TO THE ARMS CONTROL ASSOCIATION A WATCHDOG GROUP IN WASHINGTON WHILE MANY BIG DEALS HAVE BEEN DONE U. S. EXPORTERS ARE STILL DRAWN BY REGIONAL PLANS TO BUY AS MUCH AS TWENTY BILLION DOLLARS IN ARMS ANNUALLY MOSHE ARENS THE FORMER ISRAELI DEFENSE MINISTER SAYS HE PROPOSED AFTER THE WAR THAT THE U. S. CEASE ARMS SALES IN THE REGION THERE WERE NO TAKERS HE RECALLS COMMERCIAL CONSIDERATIONS ARE MORE IMPORTANT THAN THE GROWING DESTABILIZATION AS FOR THE FUTURE HE SAYS QUOTE I'M NOT OPTIMISTIC AT ALL UNLESS THE U. S. BITES THE BULLET AND GETS OTHER COUNTRIES TO GO ALONG THE EUROPEANS ARE THE MOST PROMISCUOUS THEY'LL SELL TO ALMOST ANYONE ELUSIVE SOLUTIONS TO THE PROLIFERATION PUZZLE MAY LIE IN COOPERATION BETWEEN SUPPLIER NATIONS BUT FIRST THE U. S. MUST REPAIR ITS DAMAGED TRADE RELATIONS WITH ITS FRENCH BRITISH AND GERMAN ALLIES WHO ARE ALSO AMERICA'S MOST FORMIDABLE COMPETITORS IN THE ARMS MARKET OFFICIALS IN EUROPE AS IN CHINA AND RUSSIA SO FAR HAVE FOUND THAT THE U. S. ONLY TALKS A BIG GAME WHEN IT COMES TO RESTRAINING EXPORTS FRANCE'S PARLIAMENT HAS VOWED TO BOOST ANNUAL WEAPONS EXPORTS SHARPLY AND PARIS NOW AIMS TO ESTABLISH AN AGENCY TO CONDUCT GOVERNMENT TO GOVERNMENT SALES AS THE U. S. DOES EUROPEAN ARMS MAKERS ALSO ARE HEDGING THEIR BETS WITH A SPATE OF JOINT VENTURES AND ARE TEAMING UP WITH RUSSIA TO BOOST THE RELIABILITY OF THEIR JETS AND MAKE THE PLANES MORE SALABLE FRANCE'S THOMSON S. A. AND SNECMA AS WELL AS BRITAIN'S ROLLS ROYCE P. L. C. AND G. E. C. MARCONI HAVE AGREED TO PROVIDE AVIONICS AND DO ENGINE WORK FOR RUSSIAN FIGHTERS AND TRAINERS WE WILL GO WHERE THE MARKET IS SAYS GERARD RENON SNECMA'S CHAIRMAN AND A FORMER SECRETARY OF STATE FOR DEFENSE IN THE DEFENSE FIELD WE CANNOT COOPERATE WITH THE AMERICANS MR. RENON WHOSE COMPANY HAS A COMMERCIAL ENGINE PARTNERSHIP WITH G. E. SAYS PAST ARMS COOPERATION FAILURES SHOW THE U. S. DOESN'T FAVOR THE EXISTENCE OF A EUROPEAN DEFENSE INDUSTRY SENSING EUROPE'S ANXIETY THE PENTAGON UNDERSECRETARY FOR ACQUISITION JOHN DEUTCH HAS ACKNOWLEDGED THAT SOME NORTH ATLANTIC TREATY ORGANIZATION MEMBERS DON'T BELIEVE THE U. S. GIVES ARMAMENTS COOPERATION SUFFICIENT PRIORITY HE PROPOSED THE POSSIBILITY OF COOPERATIVE MISSILE DEFENSE TECHNOLOGY RESEARCH AND EFFORTS AT DEFENSE CONVERSION THERE ARE A FEW OTHER SIGNS THAT AMERICA MAY BE MOVING TOWARD A REAL NONPROLIFERATION POLICY THE U. S. HAS OFFERED TO LET MOSCOW HELP FASHION A NEW JOINT SPACE STATION IN EXCHANGE FOR IMPROVED RUSSIAN ARMS CONTROL AND THE PENTAGON IS PRESSING A REVIEW OF FOREIGN MILITARY ASSISTANCE AS ANXIETY GROWS ON CAPITOL HILL U. S. DEFENSE CONTRACTORS DESERVE SUPPORT SAYS SENATOR JEFF BINGAMAN OF THE ARMED SERVICES COMMITTEE QUOTE BUT IN CERTAIN AREAS WE HAVE CONFLICTING GOALS AND ONE OF THOSE AREAS IS ARMS PROLIFERATION QUOTE THE NEW MEXICO DEMOCRAT SAYS IN THE QUEST FOR SOLUTIONS RAND CORPORATION THE CALIFORNIA THINK TANK SUGGESTS BANNING SALES OF THE MOST POTENT CONVENTIONAL WEAPONS IN A PENTAGON FUNDED STUDY RAND SINGLES OUT SUBMARINES ADVANCED SURVEILLANCE AND TARGET ACQUISITION SYSTEMS TOP OF THE LINE MINES AND SELF GUIDED MISSILES SUPPLIERS AND WORKERS WOULDN'T BE HURT BY SUCH A PROHIBITION SAYS RAND NOTING THAT THE WEAPONS REPRESENT ONLY ABOUT TEN PERCENT OF MIDEAST SALES I CAN'T THINK OF A SINGLE GOOD REASON TO SELL THIS STUFF SAYS KENNETH WATMAN CO AUTHOR OF THE RAND REPORT AMY DOCKSER MARCUS IN TEL AVIV ADI IGNATIUS AND MARYA FOGEL IN MOSCOW JEREMY MARK IN TAIWAN STEPHEN DUTHIE IN MALAYSIA MARCUS W. BRAUCHLI IN HONG KONG BRIAN COLEMAN IN BRUSSELS STEVE GLAIN IN SOUTH KOREA AND JOHN J. FIALKA IN WASHINGTON CONTRIBUTED TO THIS ARTICLE THE HOME OF NINE OF THE WORLD'S TEN LARGEST ARMS MAKING COMPANIES HAS FOUND DEMAND SOARING FOR ITS JETS HELICOPTERS AND MISSILES SINCE THE PERSIAN GULF WAR AIR FORCE EQUIPMENT INCLUDING LOCKHEED'S F. SIXTEEN AND GLOBAL SALES LEADER MCDONNELL DOUGLAS'S F. SLASH A EIGHTEEN AND F. FIFTEEN ACCOUNTED FOR ABOUT TWO THIRDS OF THE MORE THAN THIRTY FOUR BILLION DOLLARS IN AMERICA'S GOVERNMENT TO GOVERNMENT AGREEMENTS LAST YEAR MCDONNELL DOUGLAS'S APACHE AND UNITED TECHNOLOGIES' SIKORSKY BLACKHAWK ANCHOR THE EIGHTY PERCENT U. S. SHARE OF HELICOPTER SALES NEARLY EIGHT THOUSAND SIX HUNDRED SURFACE TO AIR MISSILES ESPECIALLY RAYTHEON'S PATRIOT OVERWHELM SALES OF OTHER WORLD SUPPLIERS BOEING LOCKHEED AND GRUMMAN PROVIDE PLANES FOR SURVEILLANCE SUBMARINE HUNTING AND OTHER USES WHILE MOST SALES HAVE FLOWED TO TRADITIONAL EUROPEAN ALLIES AND JAPAN THE LEADING BUYER WITH NINE BILLION DOLLARS OF U. S. ARMS RECEIVED IN FIVE YEARS DEMAND SINCE NINETEEN NINETY HAS SURGED IN MIDEAST MARKETS SUCH AS ISRAEL SAUDI ARABIA EGYPT AND KUWAIT NEW LINKS HAVE FORMED WITH SECOND TIER EUROPEAN BUYERS LIKE FINLAND AND WITH SUCH DEVELOPING NATIONS AS MALAYSIA THAILAND INDONESIA THE PHILIPPINES AND THE UNITED ARAB EMIRATES BUT COMPETITION HAS INCREASED FOR SALES TO SOUTH KOREA TAIWAN AND ELSEWHERE BUDGET PRESSURES FACING BUYERS JEOPARDIZE SOME DEALS OR THE U. S. COULD SUSPEND DELIVERIES FOR POLITICAL REASONS AS IT DID WITH HELICOPTERS AND RADARS FOR CHINA AND WITH F. SIXTEENS FOR PAKISTAN ITS ARMS EXPORTS APPEAR TO CONSTITUTE LESS THAN TEN PERCENT OF GLOBAL DELIVERIES BUT TRACKING SALES IS DIFFICULT NEIGHBORS ARE ALARMED BY ITS INCREASING MIGHT CHINA HAS TERRITORIAL DISPUTES WITH RUSSIA INDIA JAPAN AND OTHERS AND ACCUMULATIONS OF ADVANCED FRENCH AND RUSSIAN TECHNOLOGY GIVE IT GREATER EXPORT POTENTIAL WHILE A NEED FOR CASH IS CITED AS DRIVING THEIR DEALS THE CHINESE OFTEN INCLUDE BARTER AGREEMENTS IN ARMS SALES CONTRACTS CHINA RANKS FIFTH AMONG EXPORTER NATIONS WITH SEVEN POINT SIX BILLION DOLLARS IN SHIPMENTS OVER FIVE YEARS AND IRAN AND OTHER NATIONS WITH TERRORIST TIES ARE HEAVY BUYERS CONCERN FOCUSES ON CHINA'S TRANSFER OF BALLISTIC MISSILES TO IRAN SYRIA AND PAKISTAN THOUGH CHINA WON'T ACKNOWLEDGE MOST SALES IRANIAN PURCHASES INCLUDE F. SEVEN AIRGUARD FIGHTERS SURFACE TO AIR MISSILES AND ATTACK BOATS CHINA REPORTEDLY TOLD ISRAELI OFFICIALS LAST MAY THAT BEIJING WOULD HALT MISSILE SALES TO SYRIA IN RETURN IT WANTS ISRAEL TO HELP IT WITH AERIAL REFUELING TECHNOLOGY FOR CHINESE BOMBERS PAKISTAN CHINA'S HOTTEST CUSTOMER TOOK ONE POINT NINE THREE BILLION DOLLARS IN DELIVERIES BETWEEN NINETEEN EIGHTY EIGHT AND NINETEEN NINETY TWO AND HAS ORDERED MORE TANKS AND OTHER ARMORED VEHICLES AS WELL AS F. SEVENS INDIA ORDERED ANTITANK MISSILES LAST YEAR HEAVY SALES TO BANGLADESH INCLUDE A FIVE AND F. SEVEN FIGHTERS NAVAL VESSELS MISSILES AND LAUNCHERS CHINA HAS FOUND THAILAND AND BURMA TO BE BIG ARMS CUSTOMERS AND MAY BE ANGLING FOR A STRATEGIC ALLIANCE WITH RANGOON U. K. PRODUCERS ALREADY PUMMELED BY A TWENTY SIX PERCENT DROP IN DEFENSE JOBS OVER THREE YEARS FACE A FUTURE OF STEADY SHRINKAGE BUT LED BY BRITISH AEROSPACE THE WORLD'S NUMBER THREE ARMS MAKER BRITISH COMPANIES EXPECT TO SELL MORE THAN NINE BILLION DOLLARS OF WEAPONS OVERSEAS THIS YEAR WHILE THE GOVERNMENT LIMITS MORE GENEROUS OFFSET TERMS IT STRONGLY BACKS JOINT VENTURES WITH OTHER COUNTRIES SHIPMENTS TO SAUDI ARABIA INCLUDING TORNADO FIGHTERS WILL EXPAND TANKS ATTACK BOATS AND SURFACE TO AIR MISSILES HAVE BEEN BOUGHT BY OMAN THE U. A. E. BAHRAIN AND QATAR IN SOUTHEAST ASIA BRITAIN SELLS TO MALAYSIA THAILAND AND THE PHILIPPINES IN FRANCE GOVERNMENT INCREASES IN DEFENSE SPENDING EXTRAORDINARY AMID CUTS ELSEWHERE SHOULD RESTRAIN DOMESTIC COSTS FOR WEAPONS A TWO POINT SIX BILLION DOLLAR SALE OF DASSAULT MIRAGE TWO THOUSAND TO FIVE FIGHTERS TO TAIWAN IN NINETEEN NINETY TWO WAS FRANCE'S FIRST BIG EXPORT DEAL IN YEARS GIAT INDUSTRIES S. A. IS SELLING FOUR HUNDRED THIRTY SIX LECLERC TANKS AND ARMORED VEHICLES TO THE U. A. E. ALSO A POTENTIAL MIRAGE BUYER AND THE SAUDIS ARE BUYING THREE FRIGATES FOR FOUR BILLION DOLLARS OTHER BUYERS OF FRENCH ARMS INCLUDE CHINA MALAYSIA THAILAND THE PHILIPPINES PAKISTAN KUWAIT QATAR AND SAUDI ARABIA SHOULDER FIRED MISTRAL MISSILES ARE POPULAR AND FRANCE EXPORTED NINE HUNDRED NINETY SURFACE TO AIR MISSILES IN NINETEEN NINETY TWO SECOND ONLY TO THE U. S. AMONG THE THREE LARGEST ARMS PRODUCING NATIONS IN WESTERN EUROPE GERMANY HAD THE LARGEST NINETEEN NINETY TWO DOLLAR VOLUME OF DELIVERIES BUT DAIMLER BENZ A. G.'S DEUTSCHE AEROSPACE UNIT HAS ANNOUNCED PLANT CLOSINGS AND POLITICAL SUPPORT FOR THE EUROFIGHTER AND OTHER PROGRAMS WITH HEAVY GERMAN PARTICIPATION IS SOFTENING GREECE AND TURKEY TOGETHER ABSORBED TWO POINT EIGHT BILLION DOLLARS OF GERMAN DELIVERIES IN THE FIVE YEARS THROUGH NINETEEN NINETY TWO NOW INCREASED COMPETITION LEADS GERMANY TO SEEK NEW MARKETS INDONESIA IS BUYING THIRTY NINE SHIPS FROM THE FORMER EAST GERMAN NAVY A UNIT OF MANNESMANN A. G. RECENTLY TURNED BACK U. S. AND FRENCH RIVALS TO WIN AN ORDER FROM SWEDEN FOR ONE HUNDRED TWENTY TANKS AND THYSSEN A. G.'S SHIPBUILDING UNIT AIMS FOR AUSTRALIAN AND SAUDI SALES CUSTOMERS OF SUBMARINE MAKERS SUCH AS HOWALDTSWERKE DEUTSCHE WERFT A. G. INCLUDE ISRAEL AND SOUTH KOREA THE SOVIET UNION'S COLLAPSE SHATTERED THE FOREIGN SALES MACHINE THAT LED WORLD MARKETS SIX YEARS AGO BUT THE NEED FOR HARD CURRENCY HAS REIGNITED RUSSIAN EFFORTS TO EXPORT ARMS AND TECHNOLOGY WITH A GOAL OF INCREASING THEM BY AT LEAST FIVE BILLION DOLLARS ANNUALLY ONE TALLY SAYS JUST ELEVEN PERCENT OF NINETEEN NINETY TWO WORLD DELIVERIES WERE ATTRIBUTABLE TO RUSSIA AND OTHER FORMER SOVIET STATES THOUGH ADMINISTRATIVE DISARRAY PRODUCES GAPS IN OFFICIAL ESTIMATES U. S. INTELLIGENCE SERVICES SAY SUCH WEAPONS EXPORTS NOSE DIVED TO TWO POINT FIVE BILLION DOLLARS IN NINETEEN NINETY TWO FROM SIX BILLION DOLLARS IN NINETEEN NINETY ONE RUSSIA COMPLAINS THAT COMPLYING WITH INTERNATIONAL ARMS EMBARGOES AGAINST LIBYA AND OTHERS HAVE COST IT SEVEN POINT FIVE BILLION DOLLARS IN SALES LOSING SYRIAN AND IRAQI BUSINESS IS ALSO PAINFUL MOSCOW SAYS WEAPONS SALES ARE WEAKER TO AFGHANISTAN NORTH KOREA BULGARIA ANGOLA AND THE FORMER CZECHOSLOVAKIA AMONG OTHERS EAST GERMANY IS GONE TOGETHER RUSSIA SOLD EIGHTEEN POINT SEVEN BILLION DOLLARS OF ARMS TO THOSE COUNTRIES BETWEEN NINETEEN EIGHTY EIGHT AND NINETEEN NINETY TWO THE CHINESE EXPECT TO ORDER FOUR HUNDRED RUSSIAN TANKS AND TWO KILO CLASS SUBMARINES ALONG WITH T. TWENTY TWO M. BACKFIRE BOMBERS AND GRUMBLE SURFACE TO AIR MISSILES BEIJING ALSO WANTS TO BUILD TWO HUNDRED MIG THIRTY ONE FIGHTERS INDIA IS SHOPPING FOR UPGRADED MIGS AND BOUGHT RUSSIAN ROCKET FUEL THIS YEAR RUSSIA ALSO SOLD SUBS AND CRUISE MISSILES TO IRAN THE U. A. E. BOUGHT FIVE HUNDRED MISSILE EQUIPPED B. M. P. THREE ARMORED VEHICLES AND NOW WILL CHOOSE BETWEEN RUSSIAN AND WESTERN FIGHTERS AND HELICOPTERS RUSSIA IS SELLING MALAYSIA EIGHTEEN MIG TWENTY NINE R.S HOPING THE SALE WILL BE AN OPENING TO KUALA LUMPUR'S ASIAN NEIGHBORS DESPITE PEACE TALKS BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION THE REGION'S TWENTY TWO PERCENT SHARE OF INTERNATIONAL ARMS DELIVERIES WILL GROW DEMAND IS INTENSIFIED BY RELIGIOUS ZEALOTRY AND THE FEAR OF BEING OUTGUNNED TEL AVIV ARMS EXPERT ZEEV EYTAN CALLS THE PHENOMENON THE MIDDLE EAST VERSION OF KEEPING UP WITH THE JONESES SPENDING BY EGYPT AND SAUDI ARABIA HAS SLOWED BUT THOSE COUNTRIES ALONG WITH THE U. A. E. KUWAIT AND ISRAEL ARE PLANNING TOTAL PROCUREMENTS OF AROUND EIGHTY BILLION DOLLARS DURING THE NEXT FIVE YEARS WITH THE U. S. REMAINING THE REGION'S DOMINANT SUPPLIER A POPULAR NEW PURCHASE APACHE HELICOPTERS VETERANS OF THE GULF WAR ISRAEL SEEKS NEW U. S. FIGHTERS AND REFURBISHING PACKAGES WHICH WILL HELP ITS OWN SALES TO COUNTRIES SUCH AS INDIA AND CHILE EUROPEANS ARE GETTING ORDERS FROM THE SAUDIS AND KUWAITIS AND FROM PERIMETER NATIONS LIKE OMAN QATAR AND BAHRAIN BRITAIN HAS SOLD SAUDI ARABIA SEVEN BILLION DOLLARS OF TORNADO AND HAWK PLANES AND ARMORED VEHICLES TURKEY DABBLES IN RUSSIAN WEAPONS AND ASSEMBLES ITS OWN U. S. DESIGNED F. SIXTEENS ARMORED VEHICLES SIKORSKY HELICOPTERS AND ROCKET SYSTEMS IRAN IS SPENDING FOUR BILLION DOLLARS ANNUALLY ON CHINESE F. SEVENS SCUD MISSILES AND ATTACK BOATS PLUS RUSSIAN MIG TWENTY NINES AND SU TWENTY FOURS SUBMARINES SURFACE TO AIR MISSILES AND TANKS IT IS CLOSE TO BUYING RUSSIAN MAINSTAY AIRBORNE WARNING PLANES WHICH CARRY TWO BILLION DOLLAR PRICE TAGS IRAN'S SHIP TO SHIP MISSILES HAVE COME FROM FRANCE ITS MAINTENANCE SHIPS FROM JAPAN IRAN IRAQ AND SYRIA ARE BARRED FROM WESTERN PURCHASES BUT HAVE BOUGHT CERTAIN TECHNOLOGY THAT CAN HAVE MILITARY APPLICATIONS THE TENSION FILLED NATIONS FROM THE SUBCONTINENT TO THE CORAL SEA CREATE A THRIVING FIGHTER JET AND WARSHIP MARKET MANY FEAR THE CHINESE MILITARY EXPANSION WITH ADDED CONCERNS ARISING FROM A U. S. BASE CLOSING IN THE PHILIPPINES AND TERRITORIAL DISPUTES BANGLADESH IS PILING UP CHINESE ARMS THOUGH THIS PALES NEXT TO THE RUSSIAN AND CHINESE STOCKS AMASSED BY TWO MEMBERS OF THE NUCLEAR CLUB INDIA AND PAKISTAN INDIA LEADING DEVELOPING WORLD PURCHASERS WITH ONE POINT TWO BILLION DOLLARS IN DELIVERIES IN NINETEEN NINETY TWO IS INVESTING HEAVILY IN NAVAL AND AEROSPACE RESEARCH AND DEVELOPMENT RUSSIA REMAINS ITS DOMINANT SUPPLIER PAKISTAN ITS F. SIXTEEN PURCHASES CUT OFF BY A NUCLEAR RELATED DISPUTE WITH THE U. S. IS TURNING TO THE CHINESE FRENCH AND PERHAPS RUSSIA FOR ARMS BURMA GIVES CHINA THE LOCK ON SALES THAILAND A TRADITIONAL CUSTOMER OF BEIJING IS COURTED BY ARMS MERCHANT RIVALS U. S. AND BRITAIN AND SPAIN SOLD IT A TWO HUNDRED TWENTY EIGHT MILLION DOLLAR LANDING SHIP COMING SOON A HELICOPTER COMPETITION BETWEEN U. S. AND RUSSIAN PRODUCERS INDONESIA HAS BOUGHT GERMAN SHIPS AND MISSILES AND HAS KEEN INTEREST IN GRUMMAN SURVEILLANCE PLANES THOUGH WASHINGTON FOILED ITS EFFORT TO SELL HELICOPTERS TO IRAN MALAYSIA REMAINS A LOYAL BRITISH CUSTOMER WITH RECENT DEALS SIGNED FOR TWENTY EIGHT HAWKS FOR SEVEN HUNDRED FORTY MILLION DOLLARS PLUS SIX HUNDRED MILLION DOLLARS FOR FRIGATES BUT LAST YEAR MALAYSIA AGREED TO BUY RUSSIAN MIG TWENTY NINE R.S AND MCDONNELL DOUGLAS F. SLASH A EIGHTEENS AS AIR FORCE REPLACEMENTS THE PHILIPPINES MAY BUY ISRAELI KFIR FIGHTERS AND HAS BOUGHT NAVAL CRAFT FROM AUSTRALIAN SPANISH AND U. S. PRODUCERS JAPAN WHICH OUT PURCHASED ANY MIDEAST NATION IN NINETEEN NINETY TWO BUYS U. S. WEAPONS ALMOST EXCLUSIVELY WHILE NERVOUSLY WATCHING THE ARMING OF CHINA AND OTHER NEIGHBORS IT KEEPS FUTURE COMMERCIAL USES IN MIND IN ITS PURCHASES AND WINS BROAD TECHNOLOGY TRANSFER TERMS JAPANESE F. S. X. FIGHTERS ARE MODELED ON F. SIXTEENS AND JAPAN MAKES A VERSION OF THE F. FIFTEEN IT IS LOADING UP ON GRUMMAN AND LOCKHEED SURVEILLANCE AND SUB HUNTING PLANES IS BUYING PATRIOTS AND NOW IS SEEKING ACCESS TO THE NEW THAAD U. S. MISSILE INTERCEPTOR SYSTEM ANOTHER THAAD CANDIDATE IS SOUTH KOREA BUT INVESTIGATIONS INTO GOVERNMENT CORRUPTION HAVE CHILLED SALES THERE FOR WESTERN PRODUCERS STILL SOUTH KOREA HAS LAID THE GROUNDWORK FOR IMPORTS OF GERMAN SUBMARINES FRENCH MISSILES AND THE BEST U. S. MISSILES SURVEILLANCE PLANES AND ARTILLERY WHILE ITS RULERS THINK THE U. S. TOO STINGY WITH ITS MOST ADVANCED TECHNOLOGY SEOUL COPRODUCES MANY U. S. JETS AND BORROWS AMERICAN TANK TECHNOLOGY FOR ITS OWN K. ONE NORTH KOREA BUYS ARMS FROM RUSSIA AND CHINA WHILE FACING GLOBAL PRESSURE TO UNVEIL ITS NUCLEAR WEAPONS DEVELOPMENT IT ALSO RESOLUTELY EXPORTS SCUD MISSILES AND DEVELOPS NEW SCUDS WITH A LONGER RANGE THE REGION'S OTHER BIG BUYER TAIWAN JUST LANDED SIX BILLION DOLLARS OF F. SIXTEENS IN A DEAL THAT WILL LET THE ISLAND NATION MAKE PARTS AND PERFORM MAINTENANCE IT RECENTLY ORDERED FIFTY FOUR U. S. HELICOPTERS AND PLANS TO BUY PATRIOT MISSILE TECHNOLOGY AMERICAN SURVEILLANCE PLANES U. S. MADE FRIGATES SHIPBOARD GUNS AND MISSILES AS WELL AS OLDER PATTON TANKS ITS TWO POINT SIX BILLION DOLLAR PURCHASE OF FRENCH MIRAGE FIGHTERS MAY SOON BE FOLLOWED BY LARGE ORDERS FOR GERMAN NAVAL VESSELS ECONOMIES HAVE COOLED AND THE THREAT FROM THE EAST HAS FIZZLED BUT THERE IS STILL STRONG DEMAND FOR IMPORTS ESPECIALLY FROM THE U. S. AND DOMINANT PRODUCERS BRITAIN FRANCE AND GERMANY THE FINNS SWEDES AND SWISS ESPECIALLY HAVE LONG SHOPPING LISTS THE CONTINENT BOUGHT THIRTY SIX PERCENT OF EXPORTED ARMS IN NINETEEN NINETY TWO INCLUDING BOEING AWACS AIR DEFENSE RADAR PLANES FOR THE U. K. AND FRANCE FINLAND AND SWITZERLAND GAVE MCDONNELL DOUGLAS ORDERS FOR NINETY EIGHT F. SLASH A EIGHTEENS GERMANY A BUYER OF U. S. MISSILES ALSO HAS CONTEMPLATED BUYING FRENCH SLASH ITALIAN MISSILE SYSTEMS IN EUROPE AS THE WORLD OVER USED TANKS AND OTHER WEAPONS ARE SERVING AS SWEETENERS IN PACKAGE DEALS FOR NEW SYSTEMS THROUGH SAVVY OFFSET DEALINGS EUROPEANS EXACT A HEAVY PRICE FROM U. S. PRODUCERS BRITAIN WILL GET WORK VALUED AT ONE HUNDRED THIRTY PERCENT OF THE AWACS COSTS AND THE SWISS WON ONE HUNDRED PERCENT IN COUNTERTRADE AND OTHER OFFSET TERMS FOR THEIR TWO POINT FIVE BILLION DOLLARS F. SLASH A EIGHTEEN BUY THE FINNISH COPRODUCTION DEAL MAKES HEAVY DEMANDS ON MCDONNELL DOUGLAS AND F. SLASH A EIGHTEEN SUBCONTRACTOR NORTHROP TO SELL FINNISH PAPERMAKING MACHINES AND OTHER NONDEFENSE PRODUCTS IN THE U. S. MANY BUYERS IN EUROPE AS ELSEWHERE WANT LESS TO DO WITH MAKING WEAPONS IN A WORLD LESS INTERESTED IN WARFARE WHO WANTS COPRODUCTION OF MILITARY GOODS ASKS DANIEL CECCHIN A LONDON BASED CONSULTANT SERVING U. S. DEFENSE COMPANY CLIENTS IN EUROPE AND ELSEWHERE BASED ON HIS TRACKING OF DEALS STRUCK BY TWO HUNDRED ELEVEN U. S. AND EUROPEAN SELLERS HE SAYS INDIRECT CREDITS THAT SELLER COUNTRIES OWE TO BUYER NATIONS HAVE ROCKETED THIRTY ONE PERCENT FROM NINETEEN NINETY ONE TO NINETEEN NINETY FIVE TO ABOUT THIRTY FOUR BILLION DOLLARS AFTER HAVING SLIPPED IN PRIOR YEARS ECONOMIC HARDSHIP RELEGATES BOTH CONTINENTS TO MOSTLY BUYING USED TANKS PLANES AND VESSELS BUT EXCEPTIONS BENEFIT ALL MAJOR ARMS SUPPLIERS ARGENTINA IS BUYING CANADIAN AND ITALIAN HELICOPTERS ALONG WITH OLDER U. S. FIGHTER BOMBERS CHILE HAS BEEN PICKING UP FRENCH COUGAR HELICOPTERS AND SHOULDER FIRED MISTRAL MISSILES AND IS LOOKING AT ISRAELI MISSILES AND PHALCON AIRBORNE WARNING PLANES THE SWEDES WANT TO SELL GRIPEN FIGHTERS TO BOTH CHILE AND BRAZIL BRAZIL ONCE A NOTABLE EXPORTER OF EMBRAER TRAINERS AND LIGHT FIGHTERS HAS BEEN HIT HARD BY LOST SALES TO IRAQ ECUADOR AND PERU ARE PICKING UP TANKS FROM THE FORMER CZECHOSLOVAKIA AND PATROL BOATS FROM THE U. S. WHILE URUGUAY BUYS NEW AND USED SWISS AND BRITISH WEAPONS VENEZUELA HAS BOUGHT FRENCH MIRAGE VARIANTS ALONG WITH U. S. HARPOON MISSILES AND CLOSE SUPPORT AIRCRAFT IN AFRICA WHERE RIFLES FROM RUSSIA AND OTHER COUNTRIES MAKE UP A BUSTLING TRADE IN SMALLER WEAPONS PIECEMEAL SALES OF BIGGER AND NEWER SYSTEMS OCCASIONALLY CROP UP ZAIRE HAS PURCHASED FRENCH LIGHT TANKS FOR EXAMPLE AND KENYA HAS ACQUIRED ONE HUNDRED OF ITS SHOULDER FIRED MISTRALS THE BRITISH HAVE TAKEN ORDERS FOR HAWK TRAINERS FROM ZIMBABWE AND SOLD EIGHTY BATTLE TANKS TO NIGERIA FOR TWO HUNDRED EIGHTY TWO MILLION DOLLARS GERMANY PLACED USED SHIPS FROM THE FORMER EAST GERMAN FLEET IN TUNISIA LAST YEAR SOUTH AFRICA IS HOME TO WEAPONS MAKER DENEL FORMERLY ARMSCOR WHICH IS THE CONTINENT'S ONLY REAL MAKER OF BIGGER WEAPONS IT PROMOTES ITS NEW ROOIVALK ATTACK HELICOPTER IN AFRICA AND ASIA AND HAS SOLD SEVENTY EIGHT OF ITS ONE FIFTY FIVE M. M. GUNS TO THE U. A. E. REBECCA MORRIS CORPORATE COUNSEL AND SECRETARY WAS NAMED CORPORATE VICE PRESIDENT AT THIS ENERGY SERVICES CONCERN MS. MORRIS FORTY EIGHT YEARS OLD ASSUMES A NEWLY CREATED POSITION DAVID R. SMITH FORTY SEVEN DIRECTOR OF TAX ASSUMED THE TITLE OF CORPORATE VICE PRESIDENT TAX CONTRARY TO FORMER AMBASSADOR L. PAUL BREMER'S ASSERTION EDITORIAL PAGE JANUARY FOURTEENTH THIS ADMINISTRATION HAS NOT NEGLECTED THE THREAT POSED BY INTERNATIONAL TERRORISM IN FACT COUNTERING THE TERRORIST THREAT IS ONE OF THE GLOBAL ISSUES THAT HAS BEEN A CENTRAL FOCUS OF THE STATE DEPARTMENT AND IT IS ONE OF MY CHIEF RESPONSIBILITIES THE ACTIONS WE HAVE TAKEN AGAINST STATE SPONSORED TERRORISM INCLUDE THE FOLLOWING WE USED MILITARY FORCE TO SEND AN UNEQUIVOCAL SIGNAL TO SADDAM HUSSEIN WHEN IT BECAME CLEAR THAT IRAQ WAS BEHIND THE PLOT TO KILL FORMER PRESIDENT BUSH WE HAVE MADE CLEAR TO THE SYRIAN GOVERNMENT THAT UNTIL IT STOPS ALL SUPPORT FOR TERRORIST GROUPS IT WILL REMAIN ON THE QUOTE TERRORISM LIST QUOTE A DESIGNATION THAT RESTRICTS FOREIGN AID MILITARY SALES AND WORLD BANK LOANS WE ADDED SUDAN TO THIS LIST OF INTERNATIONAL PARIAHS AFTER IT PERSISTED IN ALLOWING IRANIAN AND OTHER TERRORISTS TO USE ITS TERRITORY AS A SAFE HAVEN AND TRAINING GROUND WE FOUGHT FOR AND OBTAINED TIGHTER MANDATORY SANCTIONS AGAINST LIBYA IN THE UNITED NATIONS IN THE FACE OF CONTINUED LIBYAN INTRANSIGENCE AND CULPABILITY FOR THE BOMBING OF PAN AM ONE HUNDRED THREE THE U. S. CONTINUES TO BELIEVE THAT STILL STRONGER MEASURES INCLUDING A WORLD WIDE OIL EMBARGO SHOULD BE ENACTED IF LIBYA CONTINUES TO DEFY THE INTERNATIONAL COMMUNITY WE REMAIN DETERMINED TO ENSURE THE PERPETRATORS OF THESE ACTS OF TERRORISM ARE BROUGHT TO JUSTICE THE FAMILIES OF THE VICTIMS IN THE MURDEROUS LOCKERBIE BOMBING AND OTHER ACTS OF LIBYAN TERRORISM DESERVE NOTHING LESS WE WILL CONTINUE TO WORK CLOSELY WITH OUR FRIENDS AND ALLIES TO TRACK DOWN TERRORISTS AND BRING THEM TO JUSTICE WE OFFER SPECIALIZED ANTI TERRORISM TRAINING TO FRIENDLY FOREIGN COUNTRIES THAT FACE TERRORISM AT HOME FINALLY CONTRARY TO THE ASSERTION THAT WE HAVE DOWNGRADED OUR COUNTERTERRORIST EFFORT WE HAVE PROPOSED THAT THE COUNTERTERRORIST COORDINATOR'S ROLE BE ASSUMED BY AN ASSISTANT SECRETARY OF STATE AND THAT OVERSIGHT BE ASSIGNED TO A NEW UNDERSECRETARY FOR GLOBAL AFFAIRS WE WILL REMAIN COMMITTED TO MAINTAINING AN EFFECTIVE INTERNATIONAL COUNTERTERRORISM POLICY AND TO INCREASING OUR ABILITY TO ENSURE THE SAFETY OF AMERICANS AND AMERICAN INTERESTS WORLD WIDE IN A SWEEPING COST CUTTING MOVE R. H. MACY AND COMPANY BEGAN DISMISSING EXECUTIVES AND STAFF MEMBERS OF ITS SAN FRANCISCO BASED MACY'S WEST UNIT THE DISMISSALS INVOLVE AT LEAST FOUR HUNDRED FIFTEEN EMPLOYEES OF THE DIVISION WHICH INCLUDES THIRTY ONE MACY'S DEPARTMENT STORES AND TWENTY BULLOCK'S DEPARTMENT STORES THERE COULD BE SEVERAL HUNDRED MORE POSITIONS ELIMINATED THROUGH DISMISSALS AND ATTRITION THE LAYOFFS ACCORDING TO EMPLOYEES GIVEN PACKETS OUTLINING THEIR DISMISSALS INCLUDE AT LEAST ONE HUNDRED QUOTE SELLING FLOOR QUOTE EXECUTIVES RANGING FROM SALES MANAGERS WHO ARE ESSENTIALLY ENTRY LEVEL JUNIOR EXECUTIVES ON UP THROUGH VARIOUS EXECUTIVE LEVELS THE PACKETS ALSO SAID THAT ABOUT FORTY FIVE JUNIOR AND SENIOR EXECUTIVES IN MACY'S WEST OFFICE OPERATIONS WERE BEING LAID OFF APPARENTLY THE FIRINGS DON'T INVOLVE ANY SALES PEOPLE AT THE MACY STORES BUT THE DISMISSALS ALSO INCLUDE A WIDE RANGE OF STORE STAFFERS SUCH AS THOSE WHO WORK IN ALTERATIONS SECURITY WINDOW DISPLAY AS WELL AS STOCK PEOPLE GIFT WRAPPERS FITTING ROOM CHECKERS AND THOSE WHO WORK IN BRIDAL REGISTRY STILL MORE JOB REDUCTIONS ARE EXPECTED THROUGH ATTRITION BUT IT'S UNCLEAR HOW LARGE THAT REDUCTION WOULD BE IT IS ALSO UNCLEAR WHETHER SIMILAR REDUCTIONS ARE PLANNED FOR MACY'S EAST DIVISION WHICH INCLUDES FIFTY NINE DEPARTMENT STORES INCLUDING THE COMPANY FLAGSHIP AT HERALD SQUARE IN NEW YORK THE FIRINGS AREN'T RELATED TO DAMAGE TO MACY STORES IN THE LOS ANGELES EARTHQUAKE BUT ARE PART OF THE COMPANY'S FIVE YEAR BUSINESS PLAN THAT THE RETAILER IS USING TO RESTORE ITS FINANCIAL STRENGTH WHILE IT OPERATES UNDER CHAPTER ELEVEN FEDERAL BANKRUPTCY PROTECTION AGAINST CREDITORS WHILE THE COMPANY HAS SYSTEMATICALLY BEEN TRIMMING ITS WORK FORCE THIS IS CONSIDERED BY FAR THE LARGEST SINGLE REDUCTION MACY'S NEW YORK BASED CORPORATE EXECUTIVES COULDN'T BE REACHED FOR COMMENT LAST NIGHT AND CALLS TO MICHAEL STEINBERG CHAIRMAN OF MACY'S WEST UNIT WEREN'T RETURNED MACY FILED FOR BANKRUPTCY PROTECTION IN NINETEEN NINETY TWO AND CURRENTLY OWES CREDITORS ABOUT SIX BILLION DOLLARS UNDER MYRON E. ULLMAN CHAIRMAN THE CHAIN HAS BEEN SUCCESSFULLY SLASHING AWAY AT ITS ONCE PLUSH OPERATIONS THE LAYOFFS CAME AS MACY WAS BEGINNING TO TALLY DAMAGE RELATED TO THE EARTHQUAKE MACY SAID IT WILL HAVE TO COMPLETELY OR PARTLY REBUILD TWO BULLOCK'S DEPARTMENT STORES AND ONE I. MAGNIN STORE IN THE LOS ANGELES AREA AS A RESULT OF LAST WEEK'S EARTHQUAKE BULLOCK'S AT NORTHRIDGE FASHION CENTER NEAR THE QUAKE'S EPICENTER WILL HAVE TO BE DEMOLISHED AND REBUILT AT A COST ESTIMATED AT MORE THAN TWENTY FIVE MILLION DOLLARS THE SHERMAN OAKS BULLOCK'S STORE THE FLAGSHIP OF THAT LOS ANGELES BASED CHAIN WAS HEAVILY DAMAGED AND WILL TAKE AT LEAST SIX MONTHS TO REBUILD THE STORE HAD BEEN EXTENSIVELY REMODELED DURING THE PAST TWO YEARS AND HAD THE SECOND HIGHEST ANNUAL SALES VOLUME OF ANY BULLOCK'S OUTLET BULLOCK'S STORES AFFECTED BY THE QUAKE CONTRIBUTE ABOUT ONE HUNDRED MILLION DOLLARS OF MACY'S TOTAL SIX POINT FIVE BILLION DOLLARS IN ANNUAL SALES MACY SAID IT EXPECTS ITS REBUILDING COSTS AND ANY LOSSES INCURRED DUE TO THE QUAKE TO BE COVERED LARGELY BY INSURANCE BUT THE PROBLEMS COULD BE A DISTRACTION FOR MACY AS THE RETAILER ATTEMPTS TO PRODUCE A REORGANIZATION PLAN FOR CREDITORS IN COMING MONTHS THE COMPANY ALSO FACES UNCERTAINTY OVER THE PLANS OF FEDERATED DEPARTMENT STORES INCORPORATED WHICH IS NOW A MACY CREDITOR AND WANTS TO MERGE WITH IT OTHER RETAILERS ALSO SUFFERED DAMAGE INVESTCORP'S SAKS FIFTH AVENUE PERMANENTLY CLOSED ITS WOODLAND HILLS STORE MAY DEPARTMENT STORES COMPANY SAID SIX OF ITS ROBINSONS MAY STORES ARE CLOSED BUT WOULD BE BACK UP IN A REASONABLY SHORT PERIOD OF TIME J. C. PENNEY COMPANY SAID ITS STORE AT THE NORTHRIDGE MALL WILL HAVE TO BE REBUILT AND MAY REOPEN BY SPRING NINETEEN NINETY FIVE CARTER HAWLEY HALE STORES INCORPORATED SAID ITS NORTHRIDGE BROADWAY STORE MAY BE REBUILT AND THAT THREE OTHER STORES REMAINED CLOSED WHEN HE MEETS WITH SYRIAN PRESIDENT HAFEZ ASSAD ON SUNDAY IN GENEVA PRESIDENT CLINTON WILL HAVE A LOT TO TALK ABOUT THE TEMPTATION WILL BE FOR HIM TO CONCENTRATE ON THE MIDDLE EAST PEACE PROCESS THAT WILL BE MR. ASSAD'S PREFERENCE BUT GLOBAL TERRORISM SHOULD BE HIGH ON MR. CLINTON'S LIST FOR WHILE THERE HAS BEEN A RELATIVE DECLINE IN ANTI AMERICAN TERRORISM THE WORLD WIDE TERRORIST INFRASTRUCTURE SUPPORTED BY STATES SUCH AS SYRIA LIBYA AND IRAN IS ALIVE AND WELL THE CLINTON ADMINISTRATION HAS NEGLECTED THE TERRORIST THREAT WITH OUR PUBLIC OFFICIALS PAYING ONLY LIP SERVICE TO THE PROBLEM THE STATE DEPARTMENT OFFICE CHARGED WITH CONDUCTING COUNTERTERRORIST POLICY HAS BEEN DOWNGRADED AND GUTTED IT HAS LOST FORTY PERCENT OF ITS STAFF A CURIOUS PHENOMENON WHEN LAST YEAR'S BOMBING OF THE WORLD TRADE CENTER UNDERSCORED THE THREAT OF MIDEAST TERRORISM FOR MANY OF US WHO HAVE BEEN INVOLVED IN THE STRUGGLE AGAINST TERRORISM THIS IS OMINOUS IN THE PAST PROGRESS IN THE FIGHT AGAINST TERRORISM DEPENDED ON VIGOROUS VISIBLE AND COURAGEOUS U. S. LEADERSHIP WITHOUT SUCH LEADERSHIP NOW WE WILL SOON LOSE MORE AMERICAN LIVES THE MEETING WITH MR. ASSAD PROVIDES MR. CLINTON AN OPPORTUNITY TO TALK STRAIGHT AND TOUGH TO ONE OF THE MOST VISIBLE TERRORIST LEADERS THE ONLY ONE WITH WHOM WE HAVE DIPLOMATIC RELATIONS THAT WOULD SIGNAL TO MR. ASSAD AND THE WORLD THAT THE U. S. IS ONCE AGAIN SERIOUS ABOUT THE FIGHT SYRIA CONTINUES TO PLAY CONGENIAL HOST TO NUMEROUS RADICAL TERRORIST GROUPS MORE THAN A DOZEN TERRORIST TRAINING CAMPS COMPLETE WITH SHOOTING RANGES OBSTACLE COURSES AND DUMMY HOUSES FOR BOMBING PRACTICE STILL OPERATE FREELY IN LEBANON UNDER THE PROTECTIVE EYE OF THE SYRIAN ARMY OUR GOVERNMENT KNOWS THEY ARE THERE THE SYRIAN GOVERNMENT KNOWS THEY ARE THERE YET DESPITE REPEATED REQUESTS BY PREVIOUS AMERICAN ADMINISTRATIONS MR. ASSAD DOES NOTHING NOR HAS LIBYA MENDED ITS WAYS IN DECEMBER COLONEL MOAMMAR GADHAFI HOSTED AN INTERNATIONAL TERRORIST GATHERING ATTENDED BY RADICAL PALESTINIAN AND OTHER OUTLAW GROUPS NOT SINCE JOSEPH STALIN'S LAST CABINET MEETING HAS THERE BEEN SUCH A GATHERING OF UNSAVORY CHARACTERS DOZENS OF TERRORIST GROUPS STILL HAVE LARGE MODERN TRAINING CAMPS THROUGHOUT LIBYA YEARS OF DIPLOMATIC EFFORTS AND FLACCID ECONOMIC SANCTIONS HAVE FAILED TO GET THE LIBYAN LEADER TO TURN OVER THE PAN AM FLIGHT ONE HUNDRED THREE BOMBING SUSPECTS MEANWHILE UNDER ITS SO CALLED MODERATE PRESIDENT ALI AKBAR HASHEMI RAFSANJANI IRAN MURDERS ITS OPPONENTS WHEREVER IT CAN HUNT THEM DOWN THE GOVERNMENT RECENTLY RECONFIRMED ITS DEATH SENTENCE AGAINST AUTHOR SALMAN RUSHDIE IRAN CONTINUES TO SUPPORT THE EXTREMIST TERRORIST MOVEMENT HEZBOLLAH RESPONSIBLE FOR KIDNAPPING AMERICANS IN LEBANON AND ALSO BACKS RADICAL GROUPS IN SUDAN AND ALGERIA OUR ALLIES PROP UP AND APPEASE IRAN'S EXTREMIST THEOCRACY OVER THE PAST FIVE YEARS GERMANY'S EXPORTS TO IRAN HAVE QUINTUPLED AND JAPAN'S HAVE MORE THAN TRIPLED TWO WEEKS AGO THE FRENCH GOVERNMENT RETURNED TO IRAN TWO IRANIAN TERRORISTS ARRESTED FOR MURDERING A REGIME OPPONENT IN SWITZERLAND CALLOUSLY BREAKING PARIS'S PROMISE TO EXTRADITE THE SUSPECTS TO SWITZERLAND IN ALL THREE CASES SYRIA LIBYA AND IRAN STRONG AMERICAN LEADERSHIP AGAINST TERRORIST NETWORKS IS URGENTLY NEEDED MR. ASSAD PROBABLY CALCULATES THAT AMERICA IS SO EAGER TO INVOLVE SYRIA IN THE PEACE PROCESS THAT IT WILL IGNORE HIS SUPPORT OF TERRORISM BUT MR. CLINTON IS IN A STRONGER NEGOTIATING POSITION THAN PREVIOUS U. S. PRESIDENTS WHO HAVE TRIED TO WRESTLE WITH MR. ASSAD THE WEAKENED ASSAD GOVERNMENT NO LONGER UNDER SOVIET SPONSORSHIP NEEDS WESTERN CREDITS AND ECONOMIC ASSISTANCE MR. CLINTON SHOULD INSIST THAT SYRIA WILL NEVER ENJOY NORMAL RELATIONS WITH WASHINGTON UNTIL DAMASCUS CLEARLY AND PUBLICLY RENOUNCES TERRORISM MOREOVER MR. CLINTON SHOULD DEMAND THAT SYRIA BEGIN EXPELLING THE TERRORISTS LIVING IN SYRIA AND CLOSING DOWN TERRORIST TRAINING CAMPS THE SYRIAN LEADER MAY ASSERT THAT DAMASCUS HASN'T DIRECTLY ENGAGED IN TERRORISM FOR SEVERAL YEARS AND THAT IT HAS HELPED RESTRAIN THE ACTIVITIES OF THE GROUPS UNDER ITS CONTROL MR. CLINTON SHOULD REMIND HIM THAT AT LEAST TWO OF THESE DAMASCUS BASED GROUPS HAVE PUBLICLY ACKNOWLEDGED RESPONSIBILITY FOR TERRORIST ATTACKS KILLING ISRAELI CIVILIANS IN THE PAST THREE MONTHS THE POPULAR FRONT FOR THE LIBERATION OF PALESTINE AND THE POPULAR FRONT FOR THE LIBERATION OF PALESTINE GENERAL COMMAND WITH RESPECT TO LIBYA THE U. S. SHOULD MOVE TO EXPAND INTERNATIONAL SANCTIONS AGAINST TRIPOLI HERE TOO OUR OBJECTIVES SHOULD BE BOLD A FORMAL RENUNCIATION OF TERRORISM BY COLONEL QADHAFI THE EXTRADITION OF THE PAN AM SUSPECTS AND THE EXPULSION OF ALL TERRORIST GROUPS FROM LIBYA WE MUST GET ACTION NOT PROMISES FROM HIM NINETY EIGHT PERCENT OF LIBYA'S FOREIGN EXCHANGE COMES FROM OIL WITH GERMANY ITALY AND SPAIN PURCHASING TWO THIRDS OF IT NOW WOULD BE A GOOD TIME TO IMPOSE A COMPLETE OIL EMBARGO ON LIBYA SINCE THE MARKET IS IN A GLUT SALES LOST BY LIBYA COULD BE MADE UP BY FRIENDLY NATIONS SUCH AS SAUDI ARABIA KUWAIT AND VENEZUELA IF A COMPLETE EMBARGO AGAINST LIBYA IS POLITICALLY UNFEASIBLE OUR GOVERNMENT SHOULD INSIST THAT THE U. N. SECURITY COUNCIL IMPOSE ON LIBYA A SYSTEM SIMILAR TO THAT IMPOSED ON IRAQ ALL PROCEEDS FROM LIBYAN OIL SALES COULD BE PUT INTO A U. N. ADMINISTERED ESCROW ACCOUNT TO BE USED TO PAY FAMILIES OF TERRORISM VICTIMS AND TO REPAY LIBYAN DEBTS CONCERNING IRAN WE MUST TELL OUR WESTERN ALLIES THAT WE ABHOR THEIR FINANCIAL DEALINGS WITH THE MURDEROUS REGIME IN TEHRAN THE TIMING IS GOOD BECAUSE IRAN'S ECONOMY IS A SHAMBLES IT CANNOT PAY ITS DEBTS AND WITHOUT THE SUPPORT OF WEST EUROPEAN CREDIT AGENCIES IT FACES DEFAULT THE WEST HOLDS THE KEY TO THE FINANCIAL RELIEF OF IRAN THAT SUPPORT SHOULD NOT BE FORTHCOMING THESE ARE HARD MESSAGES AND HARD MEASURES BUT SUCH LANGUAGE IS THE ONLY LANGUAGE TERRORISTS UNDERSTAND OUR EXPERIENCE OVER THE PAST DECADE MAKES CLEAR THAT WITHOUT A RESOLUTE PUSH FROM TOP U. S. OFFICIALS COUNTERTERRORIST POLICIES WILL NOT BE EFFECTIVE MR. BREMER WAS U. S. AMBASSADOR AT LARGE FOR COUNTERTERRORISM FROM NINETEEN EIGHTY SIX TO NINETEEN EIGHTY NINE THE JUSTICE DEPARTMENT'S NUMBER TWO OFFICIAL PHILIP HEYMANN RESIGNED AS ATTORNEY GENERAL JANET RENO SOUGHT TO BOLSTER THE AGENCY'S MANAGEMENT OF THE INCREASINGLY HOT CRIME ISSUE CITING A LACK OF PERSONAL CHEMISTRY MS. RENO AND MR. HEYMANN JOINTLY ANNOUNCED HIS RESIGNATION AS DEPUTY ATTORNEY GENERAL IN A LETTER TO PRESIDENT CLINTON MR. HEYMANN WROTE QUOTE THE ATTORNEY GENERAL HAS CONCLUDED THAT OUR OPERATIONAL AND MANAGEMENT STYLES ARE TOO DIFFERENT FOR US TO FUNCTION FULLY EFFECTIVELY AS A MANAGEMENT TEAM AT THE DEPARTMENT OF JUSTICE THAT IS A JUDGMENT I SHARE THE DEPARTURE WHICH MR. HEYMANN SAID WILL BE EFFECTIVE UPON THE AVAILABILITY OF HIS SUCCESSOR APPEARED TO REFLECT A DESIRE BY MS. RENO BOTH TO STRENGTHEN MANAGEMENT OF THE DEPARTMENT WHICH REPEATEDLY HAS SUFFERED HIGH LEVEL PERSONNEL PROBLEMS AND TO PREPARE THE ADMINISTRATION TO PLAY A BIGGER ROLE IN CONGRESSIONAL DELIBERATIONS ON PENDING ANTICRIME LEGISLATION LAST YEAR THE DEPARTMENT STAYED LARGELY ALOOF AS SWEEPING ANTICRIME BILLS STARTED WORKING THEIR WAY THROUGH THE HOUSE AND SENATE MS. RENO ALSO APPEARS EAGER TO BOLSTER HER STANDING WITH THE WHITE HOUSE WHICH AT TIMES HAS QUESTIONED HER LOYALTY MR. HEYMANN'S RESIGNATION TOOK PRESIDENT CLINTON BY SURPRISE SAID ONE ADMINISTRATION OFFICIAL GEORGE STEPHANOPOULOS A SENIOR ADVISER TO MR. CLINTON SAID MR. HEYMANN IS MORE OF A POLICY GUY AND LESS INTO DOING THE ADMINISTRATIVE WORK THEY NEEDED WITH SO MUCH GOING ON THEY JUST NEEDED A BETTER FIT MS. RENO WHO SPENDS A LOT OF HER TIME MAKING SPEECHES AROUND THE COUNTRY RATHER THAN RUNNING THE DEPARTMENT NEEDS A DEPUTY WHO IS A SOLID ADMINISTRATOR A ROLE MR. HEYMANN DIDN'T FILL TO HER SATISFACTION IN MEETINGS SHE WOULD SOMETIMES BECOME VERY DEMONSTRATIVE EMPHATIC ABOUT HER DESIRE THAT MR. HEYMANN GET THINGS DONE IN THE STYLE SHE PREFERRED SAID A DEPARTMENT OFFICIAL JANET REALLY WANTED A HANDS ON APPROACH TO RUNNING THE DEPARTMENT AND PHIL WAS MORE INCLINED TO DELEGATE AND IN SOME CASES DELEGATE TO CAREER PEOPLE EXPLAINED THIS OFFICIAL QUOTE JANET WAS UNCOMFORTABLE WITH THAT QUOTE MS. RENO DELEGATED MANY ISSUES TO MR. HEYMANN OFTEN TELLING REPORTERS THAT SHE HAD ASKED HIM TO PREPARE REPORTS ON VARIOUS ISSUES SUCH AS MANDATORY MINIMUM SENTENCES THOSE REPORTS SOMETIMES WERE LATE AND AT LEAST TWO ADMINISTRATION OFFICIALS REFERRED TO THE DEPUTY'S OFFICE AS A BLACK HOLE A LAW ENFORCEMENT OFFICIAL SAID MS. RENO WAS BOTHERED BY THE TIME IT TOOK MR. HEYMANN TO GET HER INFORMATION ON ABORTION CLINIC VIOLENCE FOR EXAMPLE AT THE NEWS CONFERENCE HE COUNTERED CRITICISM THAT HE WAS SLOW TO GET THINGS DONE SAYING I HONESTLY DON'T THINK THAT THINGS HAVE STUCK IN THE DEPUTY'S OFFICE HE RELEASED A LIST OF A DOZEN RECENT ACCOMPLISHMENTS IN THE DEPUTY'S OFFICE THOUGH HIS RESIGNATION WAS A SURPRISE SOME WHO KNOW HIM SAID THEY SAW SIGNS HE WAS UNHAPPY MR. HEYMANN SIXTY FOUR YEARS OLD WAS QUIET IN MEETINGS SEEMINGLY DISCOURAGED CERTAINLY NOT HAVING FUN AT A MEETING LAST WEEK OF U. S. ATTORNEYS FROM AROUND THE COUNTRY MR. HEYMANN WAS MADE THE BUTT OF A JOKE BY ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL WHO NOMINALLY RANKS BELOW HIM BUT ACTUALLY HOLDS CONSIDERABLE INFLUENCE BECAUSE HE IS A PERSONAL FRIEND OF PRESIDENT CLINTON WHEN SOMEONE RAISED A QUESTION ABOUT THE ANTICRIME BILL AN ISSUE FOR WHICH THE DEPUTY IS RESPONSIBLE MR. HUBBELL WHO OFFICIALLY HANDLES CIVIL MATTERS SAID YOU TAKE IT PHIL AND I'LL CORRECT YOU MEMBERS OF CONGRESS HAVE CRITICIZED THE DEPARTMENT FOR ITS LACK OF INVOLVEMENT IN SHAPING ANTICRIME LEGISLATION MR. STEPHANOPOULOS SPEAKING ON BLACK ENTERTAINMENT TELEVISION'S LEAD STORY SAID MR. HEYMANN'S DEPARTURE WOULDN'T AFFECT ADMINISTRATION EFFORTS TO GET AN ANTICRIME BILL PASSED MS. RENO QUOTE WILL TAKE CHARGE QUOTE HE SAID WE EXPECT A FULL SCALE EFFORT THERE THE DEPARTMENT'S PERSONNEL PROBLEMS BEGAN RIGHT AT THE START OF THE CLINTON ADMINISTRATION WHEN THE PRESIDENT'S FIRST TWO CHOICES FOR ATTORNEY GENERAL WITHDREW ACCORDING TO A CONGRESSIONAL RESEARCH SERVICE REPORT RELEASED BY REPRESENTATIVE WILLIAM CLINGER R. PENNSYLVANIA THE ADMINISTRATION STILL HAS FAILED TO FILL MORE THAN ONE THIRD OF THE TOP POSITIONS AT THE AGENCY INCLUDING FOUR OF ELEVEN ASSISTANT ATTORNEY GENERAL SLOTS MOREOVER WHITE HOUSE AIDES COMPLAIN PRIVATELY ABOUT MS. RENO'S PERFORMANCE SEVERAL SENIOR AIDES SAY SHE ISN'T ENOUGH OF A TEAM PLAYER AT ONE RECENT MEETING IN WHICH MS. RENO REFERRED TO HER VIEWS IN THE FIRST PERSON SINGULAR A WHITE HOUSE AIDE ADMONISHED HER SAYING THE CLINTON ADMINISTRATION WORKS AS A TEAM AFTER THE ATTORNEY GENERAL LEFT THE ROOM THE WHITE HOUSE STAFFERS GAVE EACH OTHER HIGH FIVES DESPITE COMPLAINTS ABOUT MR. HEYMANN'S MANAGEMENT STYLE MS. RENO WAS QUICK TO PRAISE HIM YESTERDAY FOR MAKING IMPROVEMENTS IN NUMEROUS AREAS INCLUDING HIS EFFORTS TO INCREASE COOPERATION AMONG FEDERAL LAW ENFORCEMENT AGENCIES AND TO RUN THE DEPARTMENT'S ANTIVIOLENCE INITIATIVE THEY BOTH INSISTED THEY HAVEN'T ANY SIGNIFICANT PHILOSOPHICAL OR POLICY DIFFERENCES BUT AS HIS WORK LOAD CONTINUED TO PILE UP MR. HEYMANN TOLD AN ASSOCIATE THAT HIS OFFICE WAS DEALING WITH ONE HUNDRED THIRTY FIVE ISSUES THE DEPUTY BEGAN TO FEEL MS. RENO'S DISAPPROVAL FOR NOT HAVING REPORTS SHE WANTED WHEN SHE WANTED THEM ONE DEPARTMENT OFFICIAL SAID I THINK INCREASINGLY HE FELT HE WAS DISAPPOINTING HER THAT HE WASN'T PRODUCING WHAT SHE NEEDED THE OFFICIAL SAID IT'S NO FUN WORKING FOR PEOPLE WHO BELIEVE YOU AREN'T GETTING THE JOB DONE BEFORE MR. HEYMANN WAS APPOINTED MR. RUFF WAS CONSIDERED FOR THE DEPUTY'S JOB BUT WAS REJECTED AT LEAST IN PART BECAUSE HE HADN'T PAID SOCIAL SECURITY TAXES FOR HIS SEVENTY ONE YEAR OLD CLEANING WOMAN RELATED PROBLEMS ALSO SCUTTLED MR. CLINTON'S FIRST TWO CHOICES FOR ATTORNEY GENERAL BUT SINCE THEN FAILURE TO PAY TAXES FOR DOMESTIC HELP HASN'T HINDERED THE APPOINTMENT OF OTHER NOMINEES AND THE NEW CLIMATE MAY NOW ALLOW MR. RUFF'S SELECTION PAUL M. BARRETT AND JEFFREY H. BIRNBAUM CONTRIBUTED TO THIS ARTICLE THE NEXT TIME YOU USE FEDERAL EXPRESS OR ANOTHER OVERNIGHT SHIPPING SERVICE YOU MAY BE COMMITTING A FEDERAL CRIME A LITTLE KNOWN LAW REQUIRES THAT FOR YOU TO USE A PRIVATE CARRIER TO DELIVER MAIL YOU MUST PAY AT LEAST TWICE THE COST OF A FIRST CLASS STAMP AND YOUR SHIPMENT MUST BE CONSIDERED QUOTE URGENT QUOTE THE POSTAL SERVICE SAYS THAT MEANS YOUR SHIPMENT MUST REQUIRE AN IMMEDIATE RESPONSE EFFECTIVELY THE SAME BUSINESS DAY IT'S RECEIVED IF IT DOESN'T YOU ARE A LAWBREAKER ALL THIS WOULD BE MERELY AMUSING EXCEPT THAT THE FEDS ARE ACTUALLY ENFORCING THIS ABSURD RULE THE LAW ALLOWS THE U. S. POSTAL SERVICE TO AUDIT MAILINGS TO SEE IF THEY ARE INDEED URGENT TYPICALLY POSTAL INSPECTORS WILL SHOW UP IN THE SHIPPING ROOM OF A COMPANY FLASH THEIR BADGES AND ASK TO EXAMINE THE RECORDS INSPECTORS RECENTLY VISITED EQUIFAX AN ATLANTA CREDIT REPORTING AGENCY AND FOUND THAT IT WAS USING OVERNIGHT SERVICES FOR NON URGENT MAIL IT PROMPTLY FINED EQUIFAX THIRTY THOUSAND DOLLARS THE AMOUNT THE POSTAL SERVICE WOULD HAVE COLLECTED IF THE MATERIALS HAD BEEN SENT FIRST CLASS EQUIFAX ISN'T ALONE IN THE PAST YEAR TWELVE COMPANIES INCLUDING G. T. E. OF STAMFORD CONNECTICUT HAVE BEEN AUDITED AND ASKED TO COUGH UP THREE HUNDRED TWELVE THOUSAND DOLLARS IN WHAT THE U. S. P. S. CALLS RECOVERED REVENUE THE POSTAL SERVICE DEFENDS ITS AUDITS AND POINTS OUT THAT IT COULD EVEN PROSECUTE VIOLATORS BUT MAGNANIMOUSLY CHOOSES NOT TO NATURALLY OVERNIGHT SHIPPING COMPANIES ARE FURIOUS AT WHAT THEY CONSIDER BULLYING TACTICS BY A COMPETITOR WITH THE POWER TO INSPECT AND FINE ITS RIVALS A. DOYLE CLOUD A FEDERAL EXPRESS VICE PRESIDENT TOLD US THAT SEARCHES OF COMPANY SHIPPING ROOMS ARE ILLEGAL AND THAT HE HAS URGED HIS CUSTOMERS NOT TO PAY ANY FINES THE POST OFFICE IS USING ITS BADGE TOTING POLICEMEN TO INTIMIDATE CUSTOMERS INTO USING ITS PRODUCT HE TOLD US HE SAYS THE POSTAL SERVICE HAS EVEN LAUNCHED AN AUDIT OF THE FEDERAL GOVERNMENT'S OWN OVERNIGHT SHIPMENTS TO DETERMINE IF UNCLE SAM'S USE OF FEDERAL EXPRESS IS LAWFUL OF COURSE ONE REASON THE GOVERNMENT USES FEDERAL EXPRESS IS THAT THE POSTAL SERVICE'S TWO DAY PRIORITY MAIL SERVICE FAILS TWENTY THREE PERCENT OF THE TIME THE POSTAL SERVICE DENIES HARASSING ANYONE JOHN BRUGGER OF THE POSTAL INSPECTION SERVICE CALLS MR. CLOUD'S CHARGES NONSENSE AND SAYS IT INSPECTS A COMPANY'S SHIPMENTS ONLY AFTER SECURING ITS VOLUNTARY COOPERATION OF COURSE WE DOUBT MANY HAPLESS SHIPPING CLERKS OBJECT OR CALL A LAWYER WHEN THE FEDERALES SHOW UP IN A COMPANY'S MAIL ROOM ASKING TO SEARCH SENATOR PAUL COVERDELL OF GEORGIA HAS INTRODUCED A BILL TO PREVENT THE POSTAL SERVICE FROM FINING ANYONE WHO USES A PRIVATE CARRIER THAT'S FINE BUT WE'D GO FURTHER AND REPEAL THE PRIVATE EXPRESS STATUTES WHICH WERE PASSED IN ONE THOUSAND EIGHT HUNDRED SEVENTY TWO TO GIVE THE GOVERNMENT A MONOPOLY OVER MAIL IN AN ERA WHEN THE FAX MACHINE COMPUTER MODEMS AND OVERNIGHT CARRIERS ARE ROUTINELY USED TO BYPASS THE SLUGGISH POSTAL SERVICE IT IS ABSURD TO CONSIGN THE REST OF THE POPULATION TO THE CLUTCHES OF AN INEFFICIENT GOVERNMENT MONOPOLY NEW ZEALAND HAS LARGELY PRIVATIZED ITS POSTAL SERVICE SERVICE AND EFFICIENCY HAVE BOTH IMPROVED BRITAIN ALSO HAS PRIVATIZATION PLANS IN THE WORKS MEANWHILE THE U. S. POSTAL SERVICE ANNOUNCED PLANS LAST MONTH TO RAISE THE PRICE OF A FIRST CLASS STAMP TO THIRTY THREE CENTS FROM TWENTY NINE CENTS WE WOULDN'T BE SURPRISED IF SOME OF THAT EXTRA REVENUE PAID SUBSIDIZES EVEN GREATER SNOOPING AROUND COMPANIES WHOSE ONLY OFFENSE IS A DESIRE TO HAVE THEIR MAIL ARRIVE ON TIME AS A TEN YEAR OLD KEVIN ROBBIE WAS THE ENVY OF EVERY KID IN AMERICA A BALLBOY FOR THE UNDEFEATED NINETEEN SEVENTY TWO MIAMI DOLPHINS A PAL OF THE LEGENDARY LARRY CSONKA AND BOB GRIESE AS A THIRTY ONE YEAR OLD HE IS CAUGHT IN THE LIVING NIGHTMARE OF A BATTLE WITHIN THE FAMILY BUSINESS A BROTHER FIRED A MOTHER SUED A NEVER ENDING NO PADS SCRIMMAGE AMONG SIBLINGS MR. ROBBIE HAS KNOWN THE TWO EXTREMES FOR ONE AND THE SAME REASON HE IS THE SON OF DOLPHINS FOUNDER AND LONGTIME OWNER JOE ROBBIE UPON HIS DEATH IN NINETEEN NINETY JOE ROBBIE LEFT BEHIND ONE OF THE NATIONAL FOOTBALL LEAGUE'S STRONGEST FRANCHISES COACHED BY DON SHULA TO MOST OF HIS RECORD SETTING THREE HUNDRED TWENTY SEVEN WINS HE ALSO LEFT A WILL THAT WOULD DRAG THE TEAM DOWN INTO A QUAGMIRE WHEN THE ROBBIES SOLD THE DOLPHINS TO VIDEO STORE MOGUL H. WAYNE HUIZENGA FOR ONE HUNDRED THIRTY EIGHT MILLION DOLLARS THIS WEEK THE TEAM FETCHED LESS THAN AN N. F. L. EXPANSION ENTRY INDEED BECAUSE THE TRANSACTION NETTED FOUR MILLION DOLLARS LESS THAN ANOTHER BIDDER'S OFFER AND WAS RUSHED TO COMPLETION IT MAY SPARK YET ANOTHER INTRA FAMILY LEGAL WAR QUOTE IT'S POSSIBLE QUOTE SAYS KEVIN ROBBIE SPEAKING FOR HIS FACTION WE FEEL LIKE WE COULD HAVE GOTTEN MORE THE MIAMI DOLPHINS' STORY IS A REMINDER THAT FOR ALL THE GRANDEUR OF SUNDAY'S SUPER BOWL PRO FOOTBALL IS REALLY A COLLECTION OF SMALL BUSINESSES A TYPICAL N. F. L. TEAM GROSSES FIFTY MILLION DOLLARS TO SIXTY MILLION DOLLARS ANNUALLY WITH THE EXCEPTION OF THE GREEN BAY PACKERS THEY ARE PRIVATELY HELD AND THUS SUBJECT TO BEING RUN IN HIGHLY QUIRKY WAYS THE DOLPHINS ARE ALSO TYPICAL OF AN ENDANGERED SPECIES THROUGHOUT PRO SPORTS THE FAMILY RUN MOM AND POP FRANCHISE JOE ROBBIE FOR WHOM THE DOLPHINS WERE A LIVELIHOOD STOOD FOR YESTERDAY WAYNE HUIZENGA FOR WHOM THE DOLPHINS ARE JUST ANOTHER PIECE OF SHOW BIZ SOFTWARE STANDS FOR TOMORROW THIS IS THE THIRD PRO SPORTS FRANCHISE HE HAS ACQUIRED IN THE PAST THREE YEARS THOUGH HIS CONTROL OF THE FLORIDA MARLINS BASEBALL AND FLORIDA PANTHERS HOCKEY MAY RUN HIM AFOUL OF THE N. F. L.'S RULES AGAINST CROSS OWNERSHIP MEANWHILE BLOCKBUSTER ENTERTAINMENT CORPORATION OF WHICH HE IS CHAIRMAN AND CHIEF EXECUTIVE HAS GONE FROM JUST RENTING MOVIES TO MAKING THEM VIA ITS ACQUISITION OF REPUBLIC PICTURES AND HIS SIGHTS ARE NOW SET ON DEVELOPING A TWO THOUSAND THREE HUNDRED ACRE THEME PARK AND SPORTS COMPLEX JUST NORTH OF MIAMI IN ADDITION BLOCKBUSTER HAS AGREED TO MERGE WITH VIACOM INCORPORATED AND JOINED IN VIACOM'S BID FOR PARAMOUNT COMMUNICATIONS INCORPORATED WAYNE IS A BIG BELIEVER IN THE POWER OF ENTERTAINMENT PROGRAMING AND HE'S DEEPLY COMMITTED TO SOUTH FLORIDA SAYS RUSSELL GOLDSMITH REPUBLIC PICTURES' CHAIRMAN YOU PUT THAT ALL TOGETHER AND IT GETS VERY INTERESTING THE WRENCHING CHANGEOVER FROM YESTERDAY TO TOMORROW WAS PERHAPS INEVITABLE FROM THE MOMENT OF MR. ROBBIE'S DEATH UNTIL THEN THERE HAD BEEN NO DOUBT ABOUT THE DOLPHINS' BOSS OR COURSE FROM THE MOMENT HE PUT UP SIXTY FIVE THOUSAND DOLLARS FOR THE TEAM IN NINETEEN SIXTY SIX TO THE DAY HE DIED IN JANUARY NINETEEN NINETY AT AGE SEVENTY THREE MR. ROBBIE WAS AN AUTOCRAT DON SHULA ONCE THREATENED TO PUNCH HIM OUT FOR HUMILIATING HIM IN FRONT OF FRIENDS VERY FEW PEOPLE LOVED HIM BUT EVERYBODY RESPECTED HIM SAYS NORMAN BRAMAN THE PHILADELPHIA EAGLES' OWNER AND A MIAMI RESIDENT QUOTE HE WAS THE ULTIMATE WINNER QUOTE BUT LIKE MANY SEAT OF THE PANTS ENTREPRENEURS HE WAS AN OVER REACHER MR. ROBBIE'S LAST MAJOR ACT BUILDING A ONE HUNDRED TEN MILLION DOLLAR STADIUM WITH PRIVATE FINANCING SADDLED HIM WITH HUGE DEBTS HE REACHED OUT FOR AN INVESTOR IN JOE ROBBIE STADIUM TO SHARE THAT LOAD AND FOUND MR. HUIZENGA EVEN ON HIS DEATHBED HOWEVER MR. ROBBIE WAS A TOUGH CUSTOMER HE REFUSED TO GIVE MR. HUIZENGA MORE THAN A FORTY NINE PERCENT INTEREST AND THEIR TALKS COLLAPSED IN DECEMBER NINETEEN EIGHTY NINE MR. ROBBIE DIED SOON THEREAFTER LEFT CONTROL OF THE TEAM TO A TRUST AND NAMED THREE OF HIS NINE CHILDREN AS TRUSTEES TIM THEN THIRTY FOUR DAN THEN TWENTY EIGHT AND JANET THEN FORTY THREE THEY PROMPTLY MADE THE DEAL WITH MR. HUIZENGA THAT THEIR FATHER WOULDN'T A FIFTY PERCENT STADIUM INTEREST AND A FIFTEEN PERCENT STAKE IN THE TEAM MR. HUIZENGA IN ADDITION GOT AN OPTION TO BUY ANOTHER TEN PERCENT OF THE DOLPHINS BASED ON THEIR NINETEEN NINETY VALUATION OF ONE HUNDRED MILLION DOLLARS AND THE RIGHT TO MATCH ANY FUTURE OFFER FOR THE ROBBIES' STOCK THEY PANICKED SAYS DEBORAH OLSON ONE OF THE OTHER SIBLINGS THE TEAM WAS HEAVILY IN DEBT AND THIS WAS QUICK CASH BUT IT WAS DONE WITHOUT ANALYSIS MRS. OLSON THREE OTHER SIBLINGS AND THEIR MOTHER ELIZABETH TRIED TO BLOCK THE TRANSACTION BUT IT WENT THROUGH AND THE FAMILY'S BLOOD FEUD WAS ON BY JULY NINETEEN NINETY THE THREE CONTROLLING CHILDREN HAD FIRED A DISSIDENT BROTHER MIKE FROM HIS EXECUTIVE VICE PRESIDENT POST ELIZABETH ROBBIE PUBLICLY SCOLDED THE THREE VIA FAXES TO REPORTERS THEN IN MARCH NINETEEN NINETY ONE SHE DID A LOT MORE SHE FILED HER WIDOW'S ELECTION TO CLAIM THE THIRTY PERCENT OF HER HUSBAND'S ESTATE THAT SHE WAS DUE UNDER FLORIDA LAW THE AIM WAS TO BREAK THE TRUST AND THE TRUSTEES' HOLD ON THE DOLPHINS THE WAR OF THE INS VERSUS THE OUTS ESCALATED WITH THE FAMILY EVENLY SPLIT FOUR CHILDREN SIDING WITH THEIR MOTHER AND TWO OTHERS SIDING WITH THE THREE TRUSTEES WHEN THE DOLPHINS THREW SOCIAL EVENTS MRS. ROBBIE WASN'T INVITED WHILE THE DOLPHINS PLAYED ONE GAME IN A DOWNPOUR DISSIDENT SIBLING DIANE TRULY WAS BARRED FROM THE COMFORT OF THE ROBBIES' OWNERS BOX AND HAD TO WATCH SOAKED IN THE STANDS WHEN DAD DIED THE THREE TRUSTEES BECAME A CLOSED SOCIETY SAYS MS. TRULY FIFTY THE ELDEST ROBBIE CHILD QUOTE POWER AND GLORY AND MONEY WENT TO THEIR HEADS AND CORRUPTED THEIR VALUES QUOTE TIM ROBBIE THE DOLPHINS' PRESIDENT DENIES IT WHEN YOU COME FROM A BIG FAMILY THERE ARE A LOT OF DIFFERENCES OF OPINION AND IT'S INEVITABLE HE SAYS I THINK THERE WAS SIMPLY RESENTMENT THAT WE WERE CHOSEN AND THEY WEREN'T WHATEVER THE BASIC ORIGINS OF THE FEUD IT ESCALATED MRS. ROBBIE CUT TIM AND SISTER JANET OUT OF HER WILL AND REDUCED BEQUESTS TO HER OTHER ESTRANGED CHILDREN THE INS SUED THEIR MOTHER TO TRY TO ELIMINATE HER AS A BENEFICIARY OF MR. ROBBIE'S TRUST SHE DIED IN NOVEMBER NINETEEN NINETY ONE AT AGE SIXTY NINE BUT THE PROBLEMS WENT ON NOW AN ESTATE TAX OF MORE THAN THIRTY MILLION DOLLARS WOULD BE ASSESSED TO PAY IT THE DOLPHINS' SALE WAS INEVITABLE BUT BY NOW DESPITE A NINETEEN NINETY ONE RANKING BY FINANCIAL WORLD AS SPORT'S SECOND MOST VALUABLE FRANCHISE TWO HUNDRED FIVE MILLION DOLLARS BY THE MAGAZINE'S CALCULATION THEY WERE DAMAGED GOODS THE INS WHO RAN THE TEAM HAD INHERITED THEIR FATHER'S HARDHEADEDNESS WITHOUT HIS BUSINESS ACUMEN THE DOLPHINS LOST THREE POINT SIX MILLION DOLLARS IN NINETEEN NINETY TWO AND ACCORDING TO ONE PERSON KNOWLEDGEABLE IN N. F. L. FINANCES ABOUT SEVEN MILLION DOLLARS IN NINETEEN NINETY THREE TIM ROBBIE ASSERTS THAT THE TEAM WAS PROFITABLE IN NINETEEN NINETY THREE ONE FACTOR WAS A SPIRALING PLAYER PAYROLL JOE ROBBIE HAD FOUGHT CONSTANTLY WITH COACH SHULA WHO FOREVER PRESSED TO SPEND BIG ON PLAYERS MR. SHULA WON A LOT MORE GAMES ON THE GRIDIRON THAN ARGUMENTS IN THE OWNER'S OFFICE BUT THE COACH UTTERLY OVERRAN MR. ROBBIE'S OFFSPRING DON GOES I WANT THIS PLAYER AND I WANT THAT PLAYER AND THE KIDS CAN'T STAND UP TO HIM SAYS ONE N. F. L. INSIDER FAMILIAR WITH THE DYNAMICS MIAMI'S SIGNING OF A RAFT OF HIGH PRICED FREE AGENTS LIKE TIGHT END KEITH JACKSON AND RECEIVER MARK INGRAM PUT THE DOLPHINS' PAYROLL AT ABOUT FORTY MILLION DOLLARS THIS SEASON IN THE UPPER TIER OF THE N. F. L.'S TOP SALARIED TEAMS ALSO HURTING FINANCES WERE THE TERMS OF THE TEAM'S LEASE WHICH DIVERT MAJOR REVENUE STREAMS LIKE LUXURYSUITE RENTALS TO THE SEPARATE COMPANY THAT OWNS THE STADIUM THAT DIDN'T MAKE SO MUCH DIFFERENCE WHEN THE ROBBIES OWNED BOTH BUT WHEN THEY PUT THE TEAM UP FOR SALE ON A STAND ALONE BASIS IT DIMINISHED THE MARKET VALUE THE LURKING PRESENCE OF MR. HUIZENGA DID TOO ANYBODY WHO BOUGHT THE DOLPHINS WOULD HAVE TO RECKON WITH HIM BOTH AS THE FIFTY PERCENT OWNER OF THE STADIUM AND AS PRINCIPAL OWNER OF ITS OTHER OCCUPANT THE MARLINS THE BASEBALL AND FOOTBALL TEAMS HAVE HAD AN UNEASY RELATIONSHIP AS CO TENANTS IF THAT DIDN'T GIVE A PROSPECTIVE DOLPHINS OWNER PAUSE MR. HUIZENGA'S TALK OF MOVING THE MARLINS TO HIS PROPOSED ENTERTAINMENT COMPLEX DID THE BASEBALL TEAM'S PRESENCE CUT THE DOLPHINS' RENTAL BILL ITS ABSENCE WOULD RATCHET IT BACK UP TO SOME KNOWLEDGEABLE DOLPHINS WATCHERS MR. HUIZENGA WAS TRYING TO JAWBONE DOWN THE TEAM'S MARKET VALUE MR. HUIZENGA WAS UNAVAILABLE FOR COMMENT THIS WAS CERTAINLY IN HIS INTEREST UNDER THE PART OWNERSHIP TERMS HE NEGOTIATED IN NINETEEN NINETY HE HAD THE RIGHT TO BUY THE REST OF THE TEAM BY MATCHING THE HIGHEST OFFER ANYONE ELSE MADE IT HAD A DEPRESSING EFFECT ON THE MARKET FOR THE DOLPHINS QUOTE IF YOU LET SOMEBODY TAKE CONTROL OF THE PROCESS ON THE BUY SIDE YOU CAN'T GET UP A HEAD OF STEAM FROM OTHER OUTSIDE BIDDERS QUOTE SAYS AN INVESTMENT BANKER WHO HAS HANDLED SPORTS TRANSACTIONS THE ROBBIES AS EVEN SOME NON FAMILY NEUTRALS SEE IT DIDN'T MANAGE THE DOLPHINS' SALE VERY WELL WHEN THE NEW ENGLAND PATRIOTS WERE UP FOR SALE FOR INSTANCE THE OWNERS HIRED A TOP FLIGHT INVESTMENT BANK TO MANAGE THE TRANSACTION AND IT ORCHESTRATED AN AUCTION THAT FETCHED ONE HUNDRED SIXTY MILLION DOLLARS THE ROBBIES RETAINED A REGIONAL BANK HOLDING COMPANY CALLED MANY OF THE SHOTS THEMSELVES AND STUMBLED THROUGH A LONG DISJOINTED SELLING PROCESS THE ROBBIES HAD TWO NEAR AGREEMENTS FALL THROUGH IN NINETEEN NINETY THREE THEN CAME A ONE HUNDRED FORTY TWO MILLION DOLLAR BID EARLY THIS MONTH FROM JOHN HENRY A BOCA RATON COMMODITIES TRADER THE ROBBIES DECIDING THE OFFER CARRIED TOO MANY CONDITIONS REJECTED IT THEN TELECOMMUNICATIONS MAGNATE GEORGE LINDEMANN GOT A TWO WEEK EXCLUSIVE NEGOTIATING PERIOD STARTING JANUARY TENTH HE CAME IN AT ONE HUNDRED THIRTY EIGHT MILLION DOLLARS THE THREE INS CALLED A MEETING OF THE COMBINED STADIUM AND TEAM BOARDS WHICH INCLUDED ONE OF THE OUT SIBLINGS TO CONSIDER THE OFFER BUT BETWEEN THE TIME THE MEETING WAS SCHEDULED LAST FRIDAY AND WHEN IT WAS TO BE HELD ON TUESDAY MR. HUIZENGA SWOOPED IN TO MATCH MR. LINDEMANN'S BID THE THREE CONTROLLING TRUSTEES ACCEPTED IT SUNDAY TO THE SCREAMS OF THE OUTS IT'S EASY FOR ANYBODY SITTING ON THE SIDELINES TO QUESTION ANY DEAL SAYS TIM ROBBIE THE TEAM PRESIDENT BUT WE TALKED TO AT LEAST TWENTY PEOPLE WHO HAD INTEREST IN BUYING AND WE'RE VERY COMFORTABLE WITH THIS TRANSACTION OTHER ROBBIE SIBLINGS SOUGHT COMPETITIVE BIDDING AND DIDN'T THINK MR. HUIZENGA WOULD MAKE A PRE EMPTIVE STRIKE IT WAS DONE AROUND THE RULES IT WASN'T A VALIDLY CALLED MEETING TO APPROVE THE SALE SAYS MRS. OLSON A BOARD MEMBER WHO LEARNED OF THE TRANSACTION ONLY AFTER THE FACT QUOTE I RESPECT WAYNE HUIZENGA HE JUST JUMPED IN AT A GOOD TIME TO GET A GOOD DEAL HE LOOKED OUT FOR HIS INTERESTS AND I'M JUST TRYING TO LOOK OUT FOR MINE INDEED MR. HUIZENGA HAS PROBABLY SWUNG A VERY GOOD DEAL THE N. F. L. STANDS TO BE FLUSH OVER THE NEXT FOUR YEARS WITH FOUR POINT FOUR BILLION DOLLARS WORTH OF T. V. MONEY GUSHING IN AND LABOR PEACE FINALLY AT HAND THE CONTROL OF BOTH TEAMS USING JOE ROBBIE STADIUM ALSO GAINS HIM OPERATING EFFICIENCIES FOR MR. HUIZENGA SPORTS IS EMERGING AS GREAT FODDER FOR THE EVOLVING MEDIA AND ENTERTAINMENT AGE IN WHICH HE IS A PLAYER WAYNE VIEWS THESE PROPERTIES AS SOFTWARE FOR THE BIGGER PICTURE SAYS DEAN JORDAN BROADCAST CHIEF FOR THE MARLINS AND MARKETING CHIEF FOR THE PANTHERS THE MARLINS MAKE JOE ROBBIE STADIUM GO FOR EIGHTY ONE GAMES A YEAR AND THAT MAKES MERCHANDISING CONCESSIONS T. V. AND OTHER THINGS GO AND ALL OF THAT IS PART OF A BIGGER PICTURE THAT'S STILL BEING DEFINED ON A DAILY BASIS THE ROBBIES WILL PROBABLY NOT BE PART OF THAT FUTURE A DEVELOPMENT THEY VIEW WITH MIXED EMOTIONS IT'S HARD SAYS KEVIN THE ONETIME BALLBOY QUOTE IT'S BEEN MY LIFE QUOTE BUT HIS SISTER MS. TRULY LOOKS FORWARD TO THE END OF HAVING TO DEAL WITH HER ESTRANGED SIBLINGS I'LL BE GRATEFUL I DON'T HAVE THEM IN MY LIFE NIPPON TELEGRAPH AND TELEPHONE CORPORATION SAID IT IS INVESTING IN THE GENERAL MAGIC INCORPORATED CONSORTIUM FURTHERING THE GROUP'S GOAL OF ESTABLISHING ITS OPERATING AND COMMUNICATIONS SOFTWARE AS WORLD STANDARDS FOR PERSONAL COMMUNICATORS AND AGENT BASED COMPUTER NETWORKS THE JAPANESE CONCERN DECLINED TO SPECIFY FINANCIAL TERMS OR THE SIZE OF ITS STAKE IN GENERAL MAGIC BUT SAID IT IS BECOMING A PARTNER QUOTE WITH THE GOAL OF DEVELOPING INFORMATION SERVICES AND DEVICES BASED ON GENERAL MAGIC TECHNOLOGIES QUOTE THE CONSORTIUM BASED IN MOUNTAIN VIEW CALIFORNIA ALREADY CONSISTS OF U. S. COMPANIES APPLE COMPUTER INCORPORATED MOTOROLA INCORPORATED AMERICAN TELEPHONE AND TELEGRAPH COMPANY AND THE WORLD'S THREE LARGEST CONSUMER ELECTRONICS CONCERNS SONY CORPORATION AND MATSUSHITA ELECTRIC INDUSTRIAL COMPANY OF JAPAN AND PHILIPS ELECTRONICS N. V. OF THE NETHERLANDS THE TWO BIGGEST TELECOMMUNICATIONS COMPANIES N. T. AND T. AND A. T. AND T. HAVE NOW JOINED TO SUPPORT A COMMON PLATFORM SAID MARC PORAT GENERAL MAGIC'S CHIEF EXECUTIVE OFFICER ADDING THAT THE CONSORTIUM WILL ALSO SEEK TELECOMMUNICATIONS ALLIANCES IN EUROPE GENERAL MAGIC HAS BEGUN SHIPPING A COMMUNICATIONS SOFTWARE CALLED TELESCRIPT WHICH ALLOWS USERS OF SUCH DEVICES AS TELEPHONES PERSONAL COMMUNICATORS INTERACTIVE TELEVISION SETS AND COMPUTERS TO PROGRAM INTELLIGENT AGENTS TO PERFORM TASKS ON THEIR BEHALF SUCH AS FILTERING OR FINDING INFORMATION A. T. AND T. SAID EARLIER THIS MONTH THAT IT WILL BY THIS SUMMER DEPLOY A NATIONWIDE NETWORK CALLED PERSONALINK AS A SORT OF ELECTRONIC MARKETPLACE MESSAGING SERVICE AND GATEWAY FOR DEVICE USERS AND COMPANIES THAT WANT TO PROVIDE SERVICES TO THOSE USERS THE COLLAPSE OF VENEZUELA'S SECOND LARGEST BANK AND UNCERTAINTY ABOUT THE ECONOMIC PROGRAM OF THE COUNTRY'S PRESIDENT ELECT ARE SENDING TREMORS THROUGH THE VENEZUELAN FINANCIAL SYSTEM BANKERS SAY THAT NERVOUS VENEZUELAN INVESTORS HAVE TRANSFERRED ROUGHLY FIVE HUNDRED MILLION DOLLARS OUT OF THE COUNTRY DURING THE PAST WEEK VENEZUELA HOWEVER IS WELL POSITIONED TO DEFEND ITS CURRENCY AGAINST A SPECULATIVE ATTACK THE COUNTRY'S TOTAL HARD CURRENCY AND GOLD RESERVES STOOD AT TWELVE POINT SEVEN BILLION DOLLARS AT YEAR END NEVERTHELESS THE TURMOIL IN THE FINANCIAL SYSTEM IS PUTTING ADDED PRESSURE ON PRESIDENT ELECT RAFAEL CALDERA WHO CAMPAIGNED ON A VAGUELY POPULIST PLATFORM TO CLEARLY DEFINE HIS ECONOMIC PROGRAM BEFORE HE TAKES OFFICE FEBRUARY SECOND THE FINANCIAL CRISIS STARTED TWO WEEKS AGO WHEN BANCO LATINO THE COUNTRY'S SECOND LARGEST BANK WITH DEPOSITS OF ONE POINT SIX BILLION DOLLARS WAS SHUT DOWN BY THE GOVERNMENT AFTER A RUN ON DEPOSITS AS PRICES OF VENEZUELAN GOVERNMENT DEBT STARTED SINKING ON INTERNATIONAL MARKETS AND SOME SMALL VENEZUELAN INVESTORS BEGAN WITHDRAWING MONEY FROM OTHER BANKS THE GOVERNMENT OF INTERIM PRESIDENT RAMON VELASQUEZ MOVED TO TRY TO CONTAIN THE DAMAGE MR. VELASQUEZ ANNOUNCED A LOWERING OF THE BANK RESERVE REQUIREMENT AND A RESHUFFLING OF BANK REGULATORS THE GOVERNMENT ALSO PLEDGED TO COVER LOSSES SUFFERED BY BANCO LATINO DEPOSITORS WHICH ANALYSTS SAY COULD COST THE GOVERNMENT FIVE HUNDRED MILLION DOLLARS IT'S STILL UNCLEAR WHETHER THE GOVERNMENT INTENDS TO LIQUIDATE THE BANK OR TO PROVIDE IT WITH AN INFUSION OF CAPITAL BANCO LATINO WAS THE VICTIM OF A RECKLESS EXPANSION STRATEGY BANKERS SAY MANAGEMENT PRACTICES AT BANCO LATINO WERE SO LAX THAT PROBLEM LOANS CAME TO REPRESENT ABOUT SEVENTY PERCENT OF THE BANK'S NET WORTH BANKERS NOTE THAT BANCO LATINO'S RISKY PRACTICES MAY HAVE BEEN WINKED AT BY REGULATORS IN THE ADMINISTRATION OF FORMER PRESIDENT CARLOS ANDRES PEREZ WHO HAD CLOSE TIES TO THE BANK OWNERSHIP GROUP MR. PEREZ WHO WAS FORCED OUT OF OFFICE LAST YEAR IS AWAITING TRIAL ON CORRUPTION CHARGES IN AN UNRELATED CASE WHILE BANCO LATINO SEEMS TO HAVE BEEN A CASE OF EXTREME MISMANAGEMENT ANALYSTS DON'T DISCOUNT FURTHER NEGATIVE SURPRISES IN A BANKING SYSTEM THAT HAS TRADITIONALLY BEEN BOTH UNDERCAPITALIZED AND LOOSELY REGULATED QUOTE VENEZUELA HAS ARGUABLY ONE OF THE WEAKEST BANKING SYSTEMS IN LATIN AMERICA QUOTE SAID A RECENT REPORT BY SALOMON BROTHERS INCORPORATED EXACERBATING THE BANK PROBLEM HAS BEEN UNCERTAINTY REGARDING THE POLICIES OF MR. CALDERA WHO HAS YET TO REVEAL WHO HE INTENDS TO NAME TO HIS CABINET OVER THE PAST YEAR MR. CALDERA WHO IS SEVENTY SEVEN YEARS OLD AND PREVIOUSLY SERVED AS PRESIDENT FROM NINETEEN SIXTY NINE TO NINETEEN SEVENTY FOUR SENT OUT CONTRADICTORY SIGNALS BY ATTACKING FREE MARKET REFORMS ON THE CAMPAIGN TRAIL WHILE APPEARING MORE OPEN TO THEM IN MEETINGS WITH INVESTORS NEVERTHELESS THE DIFFICULT ECONOMIC SITUATION HE WILL INHERIT INCLUDING STAGNATION HIGH INFLATION AND A HUGE PUBLIC DEFICIT HAS CAUSED MANY ANALYSTS TO QUESTION HIS ABILITY TO KEEP THE PROMISES HE MADE TO VOTERS ANOTHER CONSTRAINT ON MR. CALDERA WILL BE RUTH DE KRIVOY THE PRESIDENT OF THE CENTRAL BANK WHICH WAS RECENTLY GRANTED INDEPENDENCE FROM THE GOVERNMENT THROUGH A CHANGE IN THE VENEZUELAN BANKING LAW HER RESPONSE TO THE BANK CRISIS HAS BEEN TO SPEND RESERVES TO DEFEND VENEZUELA'S CURRENCY THE BOLIVAR RATHER THAN TO DEVALUE IT A DEVALUATION WOULD FEED INFLATION AND THE CENTRAL BANK HAS REPEATEDLY IDENTIFIED THE CONTROL OF INFLATION AS THE MAJOR GOAL OF ECONOMIC POLICY ALSO SINCE THE VENEZUELAN ECONOMY IS DRIVEN BY DOLLAR BASED OIL REVENUE A DEVALUATION WOULD HAVE THE EFFECT OF LOWERING VENEZUELA'S TOWERING PUBLIC DEFICIT AND TEMPORARILY GIVING MR. CALDERA LICENSE TO SPEND FREELY SOME ANALYSTS THINK THAT THE MARKET'S SENSITIVITY TO THE RECENT CRISIS COULD MAKE MR. CALDERA THINK TWICE ABOUT TRYING TO IMPLEMENT THE POPULIST MEASURES HE PROMISED DURING HIS CAMPAIGN IT CERTAINLY SENDS A WARNING THAT THE MARKETS ARE EXTREMELY SENSITIVE TO ANY SIGN OF ECONOMIC MISMANAGEMENT SAYS EDUARDO CABRERA CHIEF LATIN AMERICA STRATEGIST FOR MERRILL LYNCH BASED IN NEW YORK THOMAS F. CHAPMAN FIFTY YEARS OLD WAS NAMED A DIRECTOR OF THIS FINANCIAL INFORMATION PROVIDER THE ELECTION OF MR. CHAPMAN EXECUTIVE VICE PRESIDENT OF EQUIFAX INCREASES THE SIZE OF THE BOARD TO FIFTEEN GOLD AND PLATINUM FUTURES PRICES ROSE ON PERCEPTIONS OF POLITICAL INSTABILITY IN SOUTH KOREA AND RUSSIA AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY CLIMBED THREE DOLLARS AND TEN CENTS TO THREE HUNDRED EIGHTY SIX DOLLARS AND SEVENTY CENTS AN OUNCE AND AT THE NEW YORK MERCANTILE EXCHANGE THE PRICE OF THE APRIL PLATINUM FUTURES CONTRACT WAS UP FIVE DOLLARS AND NINETY CENTS TO THREE HUNDRED EIGHTY EIGHT DOLLARS AND TEN CENTS AN OUNCE THE MARKET DERIVED STRENGTH EARLY YESTERDAY FROM BUYING OF GOLD BY SWISS DEALERS AND BUYING OF PLATINUM BY AT LEAST ONE BIG U. S. BROKERAGE COMPANY ANALYSTS SAID AS THE DAY WORE ON POLITICAL STRIFE BECAME QUOTE AN EXCUSE FOR A KNEE JERK REACTION QUOTE BY TRADERS WHO BID PRICES HIGHER SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE CLINTON ADMINISTRATION SAID YESTERDAY IT PLANNED TO SHIP PATRIOT ANTIMISSILE WEAPONS TO SOUTH KOREA FOR USE IN DEFENSE AGAINST THE POSSIBILITY OF MISSILE STRIKES BY NORTH KOREA NORTH KOREA HAS THREATENED TO END ITS ARMISTICE AGREEMENT WITH SOUTH KOREA ON THE KOREAN PENINSULA SUCH POSTURING FOR THE POSSIBILITY OF WAR USUALLY TENDS TO PUSH PRECIOUS METALS PRICES HIGHER AT TIMES OF POLITICAL INSTABILITY INVESTORS OFTEN POUR MONEY INTO SUCH HARD ASSETS AS GOLD AND PLATINUM BECAUSE THEY BELIEVE THESE COMMODITIES WILL HOLD THEIR VALUE ADDING FUEL TO THE FIRE YESTERDAY WERE REPORTS THAT RUSSIA'S FINANCE MINISTER BORIS FYODOROV HAD RESIGNED SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INCORPORATED MR. FYODOROV REPORTEDLY QUIT AFTER ACCUSING RUSSIAN PRIME MINISTER VICTOR CHERNOMYRDIN OF ENGINEERING AN ECONOMIC COUP IN RUSSIA AS PRECIOUS METALS PRICES ROSE IN NEW YORK THEY TRIGGERED STOPS WHICH ARE PREARRANGED ORDERS TO PURCHASE FUTURES CONTRACTS MANY OF THESE ORDERS HAD BEEN PLACED BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY AND THE BIG TRADES HELPED TO CONTINUE TO DRIVE PRICES HIGHER YET ANALYSTS SAY THE PRICE OF GOLD HAS BECOME MIRED IN A TRADING RANGE OF ROUGHLY THREE HUNDRED EIGHTY DOLLARS TO THREE HUNDRED NINETY FIVE DOLLARS AN OUNCE WE NEED TO SEE THE MARKET MOVE BACK THROUGH RECENT HIGHS IF WE'RE GOING TO SUSTAIN THE RALLY THAT'S BEEN GOING ON MR. O'NEILL SAID BUT I SUSPECT WE'RE GOING TO BE RANGEBOUND FOR A WHILE ENERGY A BULLISH INDUSTRY REPORT ON U. S. PETROLEUM INVENTORIES AND ANOTHER WAVE OF COLD SNOWY WEATHER IN THE NORTHEAST COMBINED TO PUSH PETROLEUM FUTURES PRICES HIGHER IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FUTURES FOR FEBRUARY DELIVERY LED THE PACK GAINING TWO POINT FOUR ONE CENTS A GALLON DURING THE SESSION TO CLOSE AT FIFTY TWO POINT THREE ONE CENTS THE WEEKLY REPORT LATE TUESDAY FROM THE AMERICAN PETROLEUM INSTITUTE SHOWED A HUGE EIGHT POINT TWO MILLION BARREL DROP IN SUPPLIES OF DISTILLATES OR HEATING OIL AND DIESEL FUEL AN ENERGY DEPARTMENT INVENTORY REPORT YESTERDAY ECHOED THE INSTITUTE'S STATISTIC BUT PUT THE DECLINE IN DISTILLATE SUPPLIES AT AN EVEN BIGGER EIGHT POINT NINE MILLION BARRELS MEANWHILE WEATHER FORECASTS WERE CALLING FOR MORE COLD AND SNOW IN THE NORTHEAST A FACTOR IN THE HEATING OIL PRICE RISE AND IN A JUMP IN NATURAL GAS PRICES MARCH NATURAL GAS ROSE ELEVEN POINT THREE CENTS TO TWO POINT THREE FIVE NINE DOLLARS PER MILLION BRITISH THERMAL UNITS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET THE STRENGTH IN HEATING OIL PUSHED MARCH CRUDE HIGHER AS WELL WITH THE CONTRACT GAINING THIRTY CENTS A BARREL TO CLOSE AT FIFTEEN DOLLARS AND FORTY SEVEN CENTS GRAINS AND SOYBEANS WHEAT FUTURES PRICES FELL ON PERCEPTIONS OF DWINDLING EXPORT DEMAND FOR U. S. WHEAT AT THE CHICAGO BOARD OF TRADE WHEAT FOR MARCH DELIVERY WAS DOWN FOUR POINT TWO FIVE CENTS TO THREE POINT SEVEN TWO SEVEN FIVE DOLLARS A BUSHEL AN ARRAY OF EXPORT PURCHASES ANNOUNCED ABOUT TWO WEEKS AGO HAS TAPERED OFF EXERTING DOWNWARD PRESSURE ON FUTURES PRICES SAID RICHARD LOEWY PRESIDENT OF AGRESOURCE COMPANY CHICAGO PAKISTAN AND CHINA HAVE AGREED TO PURCHASE SOME WHEAT BUT THE MARKET HAS ALREADY DIGESTED THAT NEWS AND THE LACK OF FRESH DEMAND FOR WHEAT HAS BEGUN TO ERODE PRICES PAUL G. STERN FIFTY FIVE YEARS OLD FORMERLY CHAIRMAN OF NORTHERN TELECOM INCORPORATED WAS ELECTED TO THE BOARD OF THIS PERSONAL COMPUTER MAKER HE SUCCEEDS JOHN SCULLEY FORMERLY APPLE'S CHIEF EXECUTIVE OCCIDENTAL PETROLEUM CORPORATION REPORTED NET INCOME OF FIFTY SEVEN MILLION DOLLARS FOR THE FOURTH QUARTER REVERSING A FIVE HUNDRED EIGHTY EIGHT MILLION DOLLAR LOSS A YEAR EARLIER BOTH PERIODS WERE STRONGLY AFFECTED BY ONE TIME ITEMS WITHOUT VARIOUS GAINS AND CHARGES THE LATEST PERIOD PRODUCED A SLIGHTLY WIDER LOSS THAN A YEAR EARLIER ON A PER SHARE BASIS PROFIT AMOUNTED TO FIFTEEN CENTS WHILE THE YEAR EARLIER LOSS EQUALED ONE DOLLAR AND NINETY FOUR CENTS SALES FELL THIRTEEN PERCENT TO TWO POINT OH TWO BILLION DOLLARS FROM TWO POINT THREE TWO BILLION DOLLARS OCCIDENTAL STOCK FELL FIFTY CENTS TO EIGHTEEN POINT ONE TWO FIVE DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING RAY R. IRANI CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PETROLEUM GAS TRANSMISSION AND CHEMICAL COMPANY SAID THAT COST CUTTING EFFORTS CONTINUE AT THE ONCE FAR LARGER COMPANY BUT WERE OUTWEIGHED BY LOWER OIL AND CHEMICAL PRICES THE LOSS IN THE NINETEEN NINETY TWO FOURTH QUARTER REFLECTS A CHARGE OF SIX HUNDRED MILLION DOLLARS OR ONE DOLLAR AND NINETY NINE CENTS A SHARE RELATED TO OCCIDENTAL'S DECISION TO LEAVE THE COAL BUSINESS OCCIDENTAL'S HISTORICAL CORE IN OIL AND GAS OPERATIONS PRODUCED DIVISIONAL PROFIT OF SEVENTY SIX MILLION DOLLARS AGAINST FIVE MILLION DOLLARS A YEAR EARLIER HOWEVER THE LATEST PERIOD'S FIGURE INCLUDES AN EIGHTY FIVE MILLION DOLLAR ONE TIME GAIN FROM THE REVERSAL OF TAX RESERVES INDICATING ABOUT A NINE MILLION DOLLAR LOSS ON OPERATIONS THE YEAR AGO RESULT REFLECTS ONE TIME CHARGES TOTALING FIFTY EIGHT MILLION DOLLARS INDICATING A SIXTY THREE MILLION DOLLAR PROFIT FROM OPERATIONS NATURAL GAS TRANSMISSION HAD A FORTY SEVEN PERCENT DROP IN DIVISION PROFIT TO SEVENTY FOUR MILLION DOLLARS FROM ONE HUNDRED FORTY MILLION DOLLARS A YEAR EARLIER THE YEAR EARLIER PERIOD HAD NET GAINS OF SIXTY FOUR MILLION DOLLARS FROM ONE TIME ITEMS INDICATING OPERATING PROFIT OF SEVENTY SIX MILLION DOLLARS IN THE PERIOD CHEMICALS HAD A DIVISIONAL PROFIT OF SIXTEEN MILLION DOLLARS MORE THAN DOUBLE THE SIX MILLION DOLLARS OF A YEAR EARLIER THE LATEST PERIOD HOWEVER INCLUDES SIX MILLION DOLLARS IN GAINS FROM A ONE TIME REVERSAL OF RESERVES FOR PLANT CLOSING MAJOR LOSSES APPARENTLY WERE AVERTED IN THE DIVISION BY CONSIDERABLE REDUCTIONS IN OPERATING COSTS IN GENERAL CORPORATE EXPENSES INTEREST EXPENSE NARROWED TO ONE HUNDRED FORTY FIVE MILLION DOLLARS FROM ONE HUNDRED FIFTY EIGHT MILLION DOLLARS THE RESULT OF LOWER INTEREST RATES THE COMPANY SAID FOR THE YEAR OCCIDENTAL REPORTED NET INCOME OF TWO HUNDRED EIGHTY THREE MILLION DOLLARS OR EIGHTY CENTS A SHARE COMPARED WITH A YEAR EARLIER NET LOSS OF FIVE HUNDRED NINETY ONE MILLION DOLLARS OR ONE DOLLAR AND NINETY SEVEN CENTS A SHARE REVENUE IN SLID FOUR POINT SIX PERCENT TO EIGHT POINT ONE TWO BILLION DOLLARS FROM EIGHT POINT FOUR NINE BILLION DOLLARS HOECHST A. G. CONFIRMED IT IS DISCUSSING SPINNING OFF A PART OF ITS FIBERS BUSINESS INTO AN INDEPENDENT UNIT BUT SAID IT IS IN THE EARLIEST STAGES QUOTE IT IS A THEME THAT IS IN DISCUSSION BUT IT'S FAR FROM ANY DECISION QUOTE SAID A SPOKESWOMAN FOR HOECHST ONE OF GERMANY'S MAJOR CHEMICALS GROUP NO FURTHER DETAILS WERE AVAILABLE LAST WEEK HOECHST SAID IT WOULD CUT TWO THOUSAND JOBS IN ITS WESTERN EUROPE FIBERS OPERATIONS BY THE END OF NINETEEN NINETY FIVE HIT BY SLUMPING DEMAND KANEBO LIMITED SAID IT REDUCED ITS NYLON PLANT'S PRODUCTION TO SIXTY PERCENT OF CAPACITY AND IS GIVING FIVE HUNDRED FORTY WORKERS THREE EXTRA DAYS OFF A MONTH KANEBO A MAJOR JAPANESE COSMETICS AND TEXTILE MANUFACTURER BEGAN THE MEASURES LAST MONTH ACCORDING TO A COMPANY SPOKESMAN THE PLANT IS IN HOFU FOUR HUNDRED EIGHTY NINE MILES SOUTHWEST OF TOKYO THE MEASURE IS PLANNED TO LAST THROUGH MARCH LOTUS DEVELOPMENT CORPORATION SAID FOURTH QUARTER NET INCOME MORE THAN DOUBLED ON A THIRTEEN PERCENT SALES GAIN AS STRONG GROWTH IN COMMUNICATIONS SOFTWARE AND NEW WINDOWS BASED PRODUCTS OFFSET A DECLINE IN OLDER ONE TWO THREE SOFTWARE PACKAGES THE RESULTS WERE AHEAD OF MOST ANALYSTS' EXPECTATIONS AS WERE GROSS PROFIT MARGINS WHICH ROSE DESPITE INDUSTRYWIDE PRICE CUTTING THE STOCK ROSE TWO DOLLARS AND SEVENTY FIVE CENTS OR FIVE POINT TWO PERCENT TO CLOSE AT FIFTY FIVE POINT SIX TWO FIVE DOLLARS IN HEAVY NASDAQ STOCK MARKET TRADING OF THREE POINT EIGHT MILLION SHARES NET WAS TWENTY NINE POINT SIX MILLION DOLLARS OR SIXTY FOUR CENTS A SHARE COMPARED WITH LAST YEAR'S FOURTEEN POINT SIX MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE ON ELEVEN PERCENT FEWER SHARES THE YEAR AGO RESULTS ALSO INCLUDED A FIFTEEN MILLION DOLLAR RESTRUCTURING CHARGE AND A FIFTEEN MILLION DOLLAR GAIN FROM THE SALE OF STOCK QUOTE THIS IS THE QUARTER THAT EXPLAINS THE ONE HUNDRED SEVENTY EIGHT PERCENT RUN UP IN LOTUS'S STOCK PRICE IN THE PAST YEAR QUOTE SAID DAVID READERMAN AN ANALYST WITH LEHMAN BROTHERS THE FUNDAMENTALS GOING FORWARD ARE STRONG LOTUS REPORTED STRONG GROWTH IN SALES OF ELECTRONIC MAIL AND ITS NOTES SOFTWARE WHICH NOW ARE FIRMLY DRIVING THE BUSINESS AND ROSE TO TWENTY FIVE PERCENT OF SALES SAID RICK SHERLUND AN ANALYST WITH GOLDMAN SACHS AND COMPANY PRODUCTS BASED ON MICROSOFT CORPORATION'S WINDOWS OPERATING SOFTWARE ROSE TO SEVENTY PERCENT OF SALES WHILE PROGRAMS FOR THE OLDER D. O. S. SYSTEM FELL BY HALF REVENUE ROSE TO TWO HUNDRED SEVENTY EIGHT POINT THREE MILLION DOLLARS FROM TWO HUNDRED FORTY SIX MILLION DOLLARS TERRY QUINN AN ANALYST AT FURMAN SELZ IN NEW YORK SAID LOTUS'S REVENUE WOULD HAVE BEEN EVEN BETTER EXCEPT THAT THE COMPANY DIDN'T BOOK ABOUT SIXTEEN MILLION DOLLARS IN NOTES SALES WHICH WILL BE RECOGNIZED IN THE FIRST QUARTER INSTEAD AND TIGHTENED INVENTORY IN RETAIL SALES CHANNELS THEY HAVE AN EMBARASSMENT OF RICHES AND THEY'RE DELIBERATELY TRYING TO RESTRAIN EXPECTATIONS FOR THE YEAR MR. QUINN SAID SEVERAL ANALYSTS RAISED FORECASTS FOR THE CURRENT YEAR MR. SHERLUND BOOSTED HIS TO TWO DOLLARS AND THIRTY CENTS A SHARE FROM TWO DOLLARS AND TWENTY CENTS BUT LOTUS'S CHIEF FINANCIAL OFFICER EDWIN GILLIS SAID LOTUS HASN'T ALTERED ITS GUIDANCE TO WALL STREET OF ONE DOLLAR AND NINETY FIVE CENTS TO TWO DOLLARS AND FIFTEEN CENTS A SHARE FOR THE YEAR AND ANYONE ABOVE THAT IS OUT THERE AT THEIR OWN RISK SEPARATELY LOTUS PLAYED DOWN REPORTS OF A BUG IN ITS FLAGSHIP SPREADSHEET ONE TWO THREE FOR WINDOWS A SPOKESMAN NOTED THE PRODUCT HAS BEEN OUT FOR SEVEN MONTHS AND IF THIS PROBLEM WERE WIDESPREAD WE'D HAVE HEARD ABOUT IT IMMEDIATELY HE SAID THAT FEWER THAN ONE PERCENT OF CALLS COMING INTO THE CUSTOMER HELP LINE RELATED TO THE GLITCH WHICH CAN CAUSE DATA TO BE LOST UNDER CERTAIN RARE CIRCUMSTANCES AN UPSTART COMPANY WILL UNVEIL A NEW DIGITAL COMPRESSION TECHNOLOGY HERE TODAY THAT IT CLAIMS COULD ALLOW TELEPHONE COMPANIES TO SEND TEN CHANNELS OF VIDEO OVER THEIR EXISTING WIRES THOUGH ITS TECHNOLOGY HAS YET TO BE FIELD TESTED DIGITAL COMPRESSION TECHNOLOGY SAYS IT CAN ENABLE HOMES NOW RECEIVING TELEPHONE SERVICE TO RECEIVE MOVIES AND INTERACTIVE GAMES AND SERVICES OVER THE SAME TWENTY SIX GAUGE TWISTED COPPER PHONE WIRE IT CLAIMS THE TECHNOLOGY COULD ALSO ENABLE A CABLE T. V. SYSTEM TO SEND TWENTY TO THIRTY CHANNELS IN THE SPACE OF ONE CHANNEL THREE TIMES WHAT IS CURRENTLY POSSIBLE WITH TRADITIONAL DIGITAL COMPRESSION THE COMPANY'S CHAIRMAN DAVID QUOTE JIM QUOTE JUDELSON WAS PRESIDENT OF PARAMOUNT COMMUNICATIONS INCORPORATED THEN CALLED GULF AND WESTERN INCORPORATED BEFORE LOSING THE RACE FOR THE TOP POST TO CURRENT CHIEF EXECUTIVE OFFICER MARTIN DAVIS IN NINETEEN EIGHTY THREE AT GULF AND WESTERN MR. JUDELSON WAS A BIG PROPONENT OF THE ELECTRIC CAR AND SINCE LEAVING HAS INVESTED IN VARIOUS TECHNOLOGY START UPS HE COFOUNDED DCT WITH ELLIOT GRUENBERG AN INVENTOR AND FORMER EXECUTIVE AT INTERNATIONAL BUSINESS MACHINES CORPORATION WHO SPENT THIRTY YEARS STUDYING DIGITAL COMPRESSION MR. JUDELSON CONTROLS DIGITAL COMPRESSION MR. JUDELSON'S CLAIMS WHICH ARE BASED ON RESEARCH AT STEVENS INSTITUTE OF TECHNOLOGY OF HOBOKEN N. J. ARE AMBITIOUS HE SAYS HE IS CURRENTLY NEGOTIATING A DEAL WITH A REGIONAL BELL TELEPHONE COMPANY THOUGH HE WON'T NAME IT HE HAS NO MAJOR CORPORATE INVESTORS AND THUS FAR HAS ONLY PROVEN THE NEW TECHNOLOGY'S CLAIMS ON A REAL TIME SIMULATOR ON A LAB TABLE AT STEVENS SKEPTICS SAY SUCH A DEMONSTRATION IS NOT PROOF THAT DCT'S TECHNOLOGY WOULD WORK ON INTERFERENCE SENSITIVE TELEPHONE NETWORKS HANDLING MILLIONS OF CALLS EACH HOUR THERE ARE WONDERFUL THINGS YOU CAN DO PUTTING ELECTRONIC DEVICES AT EACH END OF A WIRE SAYS JIM CHIDDIX SENIOR VICE PRESIDENT OF ENGINEERING AND TECHNOLOGY AT TIME WARNER INCORPORATED'S CABLE UNIT MOST THINGS I HAVE COME ACROSS WITH CLAIMS THIS GRANDIOSE HAVE A FATAL FLAW WHEN IT COMES TO PRACTICAL APPLICATIONS IN THE REAL WORLD THE MOST SOPHISTICATED TELEPHONE TECHNOLOGY HAS BEEN DEVELOPED AT THE RESEARCH UNIT OF THE REGIONAL BELL COMPANIES BELL COMMUNICATIONS RESEARCH KNOWN AS ADSL OR ASYMMETRIC DIGITAL SUBSCRIBER LINE IT ENABLES DELIVERY OF FOUR CHANNELS OF V. C. R. QUALITY VIDEO DOWN COPPER WIRE WE'RE SKEPTICAL FROM WHAT WE KNOW OF DCT'S TECHNOLOGY SAYS ONE BELL ENGINEER THERE AN EXECUTIVE OF ANOTHER REGIONAL TELEPHONE COMPANY HOWEVER SAID IT IS INTERESTED IN THE TECHNOLOGY AND PLANS TO TEST IT IN ITS OWN LABS BUT THE EXPERIENCE OF DCT UNDERSCORES HOW EVEN THE SMALLEST OF ENTREPRENEURIAL COMPANIES ARE TRYING TO FIND A PLACE AT THE TABLE OF FUTURE COMMUNICATIONS TECHNOLOGIES MR. JUDELSON SAYS HE PLANS TO LICENSE THE TECHNOLOGY IN THE FORM OF A COMPUTER CHIP THAT HE COULD BRING TO MARKET IN LESS THAN A YEAR TECHNICIANS AT DCT WHICH HAS BEEN AWARDED A PATENT ON THE TECHNOLOGY SAY THEIR APPROACH TO DIGITAL COMPRESSION IS RADICALLY DIFFERENT FROM TRADITIONAL COMPRESSION TECHNIQUES BY EMPLOYING A NEW TRANSMISSION BASED METHOD WHICH ESSENTIALLY RECONFIGURES BITS OF DATA INTO A PARALLEL SEQUENCE DCT SAYS IT CAN SEND SIXTEEN BITS IN THE SPACE AND TIME NORMALLY RESERVED FOR ONE BIT OF INFORMATION MR. JUDELSON LIKENS IT TO SENDING SIXTEEN CARS THROUGH A TUNNEL SIDE BY SIDE INSTEAD OF SINGLE FILE THEN REALIGNING THEM AT THE OTHER END FEW OUTSIDE THE DCT CAMP HAVE SEEN THE SIMULATION ONE PERSON WHO DID HERMANN HELGERT A PROFESSOR OF ENGINEERING AND APPLIED SCIENCE AT GEORGE WASHINGTON UNIVERSITY DUBBED THE DCT TECHNOLOGY A BREAKTHROUGH AND SAYS HE BELIEVES IT PERFORMS AS STATED ROBERT J. CRUIKSHANK SIXTY THREE YEAR OLD RETIRED SENIOR PARTNER OF DELOITTE AND TOUCHE WAS NAMED TO THE BOARD OF THIS MAKER OF ALUMINUM PRODUCTS INCREASING THE BOARD'S SIZE TO SIX MR. CRUIKSHANK IS A DIRECTOR OF MAXXAM INCORPORATED WHICH OWNS SIXTY SEVEN PERCENT OF KAISER'S VOTING STOCK BETHLEHEM THE NATION'S SECOND LARGEST STEELMAKER SAID IT EXPECTS STRONG DEMAND TO CONTINUE THIS YEAR RESULTING IN A PROFIT FOR NINETEEN NINETY FOUR BETHLEHEM REPORTED A FOURTH QUARTER LOSS OF TWO HUNDRED FORTY TWO POINT SIX MILLION DOLLARS OR TWO DOLLARS AND SEVENTY EIGHT CENTS A SHARE COMPARED WITH A LOSS OF FIFTY SIX MILLION DOLLARS OR SIXTY NINE CENTS A SHARE IN NINETEEN NINETY TWO'S FOURTH QUARTER THE MOST RECENT PERIOD'S LOSS INCLUDED A TWO HUNDRED NINETY MILLION DOLLAR RESTRUCTURING CHARGE FOR A REVISED MODERNIZATION PLAN AT ITS STRUCTURAL PRODUCTS DIVISION AND AN IDLED COKE PLANT SALES CLIMBED FOURTEEN PERCENT TO ONE POINT ONE THREE BILLION DOLLARS FROM NINE HUNDRED NINETY MILLION DOLLARS BETHLEHEM'S OPERATING PROFIT OF ABOUT FORTY CENTS A SHARE TOPPED ANALYSTS' ESTIMATES IN THE MID TWENTY CENTS RANGE J. CLARENCE MORRISON AN ANALYST WITH PRUDENTIAL SECURITIES SAID THE COMPANY'S EARNINGS BENEFITED FROM A FAVORABLE PRODUCT MIX AND COST CUTTING ALONG WITH STRONGER DEMAND AND HIGHER PRICES HE ESTIMATED BETHLEHEM'S PROFIT PER TON AT TWENTY EIGHT DOLLARS MUCH BETTER THAN THE TWENTY DOLLARS HE EXPECTED QUOTE WE EXPECT TO SEE CONTINUED IMPROVEMENT IN DEMAND IN NINETEEN NINETY FOUR FROM MAJOR STEEL MARKETS SUCH AS AUTOMOTIVE CONSTRUCTION AND MACHINERY QUOTE SAID CURTIS H. BARNETTE CHAIRMAN AND CHIEF EXECUTIVE A CONTINUED ECONOMIC AND STEEL MARKET RECOVERY COUPLED WITH ONLY A MODEST RISE IN STEEL IMPORTS SHOULD RESULT IN NINETEEN NINETY FOUR DOMESTIC INDUSTRY SHIPMENTS WHICH MATCH OR EXCEED NINETEEN NINETY THREE'S ESTIMATED EIGHTY SEVEN MILLION TONS AND WE EXPECT THAT BETHLEHEM WILL BE PROFITABLE FOR THE YEAR NINETEEN NINETY FOUR FOR THE YEAR INCLUDING THE RESTRUCTURING CHARGE BETHLEHEM REPORTED A LOSS OF TWO HUNDRED SIXTY SIX MILLION DOLLARS COMPARED WITH A LOSS OF FIVE HUNDRED FIFTY MILLION DOLLARS FOR NINETEEN NINETY TWO NET SALES FOR NINETEEN NINETY THREE WERE FOUR POINT THREE TWO BILLION DOLLARS COMPARED WITH FOUR BILLION DOLLARS IN NINETEEN NINETY TWO BETHLEHEM IS SCALING BACK ITS PLANS TO MODERNIZE ITS STRUCTURAL STEEL BUSINESS UNDER THE ORIGINAL PLAN THE COMPANY PLANNED TO INSTALL A CONTINUOUS CASTER AT ITS STRUCTURAL STEEL OPERATION AND REDUCE EMPLOYMENT BY ONE THOUSAND FIVE HUNDRED BETHLEHEM SAID IT HAS DECIDED TO SHIP STEEL FROM ANOTHER UNIT TO MAKE THE STRUCTURAL PRODUCTS ELIMINATING THE NEED FOR THE CASTER ALTHOUGH THE REVISED PROJECT WILL COST LESS ABOUT A QUARTER TO ONE THIRD OF THE ORIGINAL ONE HUNDRED MILLION DOLLAR ESTIMATE THE COMPANY IS REDUCING ANOTHER FIVE HUNDRED JOBS AT THAT PLANT RESULTING IN THE NEED FOR ADDITIONAL CHARGES BETHLEHEM SAID IT SCALED BACK ITS MODERNIZATION PROGRAM AFTER DECIDING TO LIMIT ITS PRESENCE IN THE STRUCTURAL STEEL BUSINESS THE COMPANY SAID IT WILL NOW FOCUS ON LIGHT AND MEDIUM WIDE FLANGE BEAMS WHICH ARE USED MAINLY IN LIGHTER LOW RISE BUILDINGS THE HEAVY WIDE FLANGE BEAMS ARE USED IN HIGH RISE BUILDINGS WHICH THE COMPANY NOTED ARE BEING HURT BY REDUCED COMMERCIAL CONSTRUCTION ACTIVITY AND LOW OCCUPANCY RATES NATIONAL STEEL CITING OPERATIONAL PROBLEMS REPORTED A FOURTH QUARTER LOSS OF ONE HUNDRED THIRTY EIGHT POINT EIGHT MILLION DOLLARS OR THREE DOLLARS AND EIGHTY NINE CENTS A SHARE REFLECTING UNUSUAL CHARGES THE CHARGES INCLUDED ONE HUNDRED EIGHT POINT SIX MILLION DOLLARS TO RECOGNIZE LIABILITIES FROM THE TEMPORARY IDLING OF AN IRON ORE PLANT AND THIRTEEN POINT SIX MILLION DOLLARS FOR INVENTORY ADJUSTMENTS THE CHARGES WERE OFFSET IN PART BY A FOURTEEN POINT TWO MILLION DOLLAR DEFERRED INCOME TAX CREDIT THE COMPANY ALSO REPORTED A SIXTEEN POINT FIVE MILLION DOLLAR CHARGE FOR ACCOUNTING CHANGES WHICH WAS APPLIED RETROACTIVELY TO THE FIRST QUARTER FOR THE YEAR AGO FOURTH QUARTER NATIONAL STEEL HAD A LOSS OF NINETY NINE MILLION DOLLARS OR FOUR DOLLARS AND SIX CENTS A SHARE INCLUDING CHARGES OF TWENTY FIVE POINT TWO MILLION DOLLARS LARGELY FOR HEALTH AND PENSION BENEFITS FOR UNITED MINEWORKERS RETIREES SALES FOR THE QUARTER WERE FIVE HUNDRED EIGHTY FIVE POINT FOUR MILLION DOLLARS COMPARED WITH FIVE HUNDRED SEVENTY TWO POINT EIGHT MILLION DOLLARS LAST YEAR THE COMPANY SAID IT EXPECTS A FIRST QUARTER GAIN OF MORE THAN ONE HUNDRED TEN MILLION DOLLARS STEMMING FROM A FAVORABLE U. S. SUPREME COURT DECISION IN A CASE INVOLVING U. S. X. CORPORATION'S FORMER BESSEMER AND LAKE ERIE RAILROAD UNIT FOR NINETEEN NINETY THREE NATIONAL REPORTED A LOSS OF TWO HUNDRED FIFTY EIGHT POINT NINE MILLION DOLLARS OR EIGHT DOLLARS AND FOUR CENTS A SHARE INCLUDING ONE HUNDRED ELEVEN MILLION DOLLARS IN CHARGES FOR THE IDLED PLANT AND ACCOUNTING CHANGES LAST YEAR THE COMPANY POSTED A LOSS OF FORTY EIGHT POINT FOUR MILLION DOLLARS OR TWO DOLLARS AND FIFTY EIGHT CENTS A SHARE INCLUDING CHARGES OF THIRTY SEVEN MILLION DOLLARS FOR THE UNITED MINEWORKERS BENEFITS AND ACCOUNTING CHANGES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BETHLEHEM STEEL CLOSED AT TWENTY THREE DOLLARS AND TWENTY FIVE CENTS UP ONE POINT SIX TWO FIVE DOLLARS NATIONAL STEEL SHARES ROSE THIRTY SEVEN POINT FIVE CENTS TO FIFTEEN DOLLARS AND SEVENTY FIVE CENTS THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND ONE SIXTEENTH PERCENT HIGH TWO AND FIFTEEN SIXTEENTHS PERCENT LOW TWO AND SEVEN EIGHTHS PERCENT NEAR CLOSING BID THREE PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH THREE PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH FIVE PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT OH EIGHT PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE OH PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT ONE TWO PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO OH PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT THREE TWO PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE OH PERCENT THIRTY DAYS THREE POINT ONE TWO PERCENT SIXTY DAYS THREE POINT ONE FOUR PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE TWO PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT FIVE SIX PERCENT THREE MONTHS TWO POINT SIX NINE PERCENT SIX MONTHS THREE POINT OH FIVE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH ONE PERCENT ONE MONTH THREE POINT OH SEVEN PERCENT THREE MONTHS THREE POINT TWO TWO PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE PERCENT THIRTY DAYS THREE POINT OH TWO PERCENT SIXTY DAYS THREE POINT OH FOUR PERCENT NINETY DAYS THREE POINT OH SEVEN PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE TWO PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE FIVE PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT FOUR MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND THREE EIGHTHS PERCENT SIX MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT NINE ONE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY TWENTY FOURTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE SIX PERCENT THIRTEEN WEEKS THREE POINT ONE FOUR PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT NINE PERCENT SIXTY DAYS SIX POINT NINE SEVEN PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT SIX PERCENT SIXTY DAYS SIX POINT NINE SIX PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN THREE PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS ALFRED DECRANE CHIEF EXECUTIVE OFFICER OF TEXACO INCORPORATED SAID THE COMPANY WILL SPEND FIFTEEN BILLION DOLLARS TO SEVENTEEN BILLION DOLLARS OVER THE NEXT FIVE YEARS ON ENERGY EXPLORATION AND OTHER CAPITAL PROJECTS BUT MR. DECRANE SAID IN AN INTERVIEW THAT WHEN HE PRESENTS THE TEXACO BOARD TOMORROW WITH NINETEEN NINETY FOUR'S BUDGET IT WILL FLUCTUATE WITH OIL PRICES WHICH HAVE STUCK FOR SEVERAL MONTHS AT FIVE YEAR LOWS QUOTE WE'RE GOING TO RECOMMEND A BANDWIDTH OF INVESTMENT QUOTE THE CHIEF EXECUTIVE SAID YOU'VE GOT TO WATCH YOUR CASH FLOW MR. DECRANE'S NINETEEN NINETY FOUR BUDGET PROPOSAL UNDERSCORES THE CHANGES BIG INTERNATIONAL OIL COMPANIES ARE MAKING IN THEIR PLANNING PROCESSES IN PAST YEARS THEY WOULD SET A CAPITAL BUDGET AND TRY TO STICK TO IT EVEN AMID A PLUNGE IN CRUDE PRICES THE EXPLANATION WAS THAT MANY OIL PROJECTS REQUIRE MASSIVE AMOUNTS OF SPENDING OVER MANY YEARS AND MAY NOT BEGIN TO SHOW A RETURN UNTIL YEARS LATER WHEN COMPANIES HOPED PRICES WOULD RECOVER THE VOLATILITY THAT WE'VE SEEN IN OIL AND GAS MARKETS HAS SIGNALED THE DEMISE OF ANNUAL BUDGET PLANNING FOR ANY COMPANY THAT DOESN'T WANT TO GO THE WAY OF THE SOVIET UNION SAID ARVIND SANGER AN OIL SERVICE ANALYST AT KIDDER PEABODY AND COMPANY IN NEW YORK ANY OIL COMPANY MUST BE MORE RESPONSIVE TO THE MARKET IN NOT SETTING A BUDGET IN STONE AND LIVING AND DYING BY IT MR. DECRANE STRESSED THAT TEXACO ISN'T MAKING ANY RADICAL CHANGE IN ITS LONG TERM EXPLORATION STRATEGY BUT WOULD DEFER CERTAIN PROJECTS IF CRUDE PRICES REMAIN DEPRESSED LAST YEAR TEXACO BASED IN WHITE PLAINS N. Y. MADE TWO POINT EIGHT SIX BILLION DOLLARS OF CAPITAL EXPENDITURES THROUGH NINETEEN NINETY EIGHT MR. DECRANE SAID HE BELIEVES OIL PRICES WILL RECOVER AND THAT THE COMPANY WILL WIND UP SPENDING A TOTAL OF FIFTEEN BILLION DOLLARS TO SEVENTEEN BILLION DOLLARS FIVE YEARS FROM NOW WHEN WE LOOK BACK THAT'S WHAT WE WILL HAVE DONE HE SAID THAT AVERAGES AROUND THREE BILLION DOLLARS A YEAR BUT HE SAID THAT ANNUAL LEVELS WILL FLUCTUATE BASED ON CASH FLOW AND THE SIZE OF PARTICULAR PROJECTS QUOTE OIL PRICES WILL INCREASE QUOTE MR. DECRANE SAID I CAN'T PREDICT A SPECIFIC TIME OR LEVEL THE CHIEF EXECUTIVE ACKNOWLEDGED THAT HE AND OTHERS THOUGHT PRICES WHICH HAVE STUCK AROUND FIFTEEN DOLLARS A BARREL WOULD HAVE RECOVERED BY NOW THE LIKELY REDUCTION IN TEXACO'S SPENDING THIS YEAR MIRRORS AN INDUSTRY WIDE TREND AND BODES POORLY FOR THE MANY OIL SERVICE COMPANIES THAT LIVE AND DIE ON THE SPENDING PATTERNS OF OIL EXPLORATION AND PRODUCTION COMPANIES THAT EXPECTATION WAS HIGHLIGHTED TUESDAY WHEN COOPER INDUSTRIES INCORPORATED A DIVERSE MAKER OF PRODUCTS FOR MANY INDUSTRIES INCLUDING PETROLEUM SAID THAT NINETEEN NINETY FOUR NET INCOME COULD PLUNGE TWENTY FIVE PERCENT BECAUSE OF A SLUMP IN OIL INDUSTRY EXPLORATION RESEARCHERS SAID THEY DEVELOPED A NEW GENE BASED DIAGNOSTIC TEST THAT MIGHT SOLVE PROBLEMS CAUSED BY THE FREQUENT MISDIAGNOSIS OF LYME DISEASE THE RESEARCHERS LED BY THE DOCTOR WHO IN NINETEEN SEVENTY SIX DISCOVERED THE BACTERIUM THAT CAUSES LYME DISEASE SAID THE NEW TEST IDENTIFIED THE PRESENCE OF THE BACTERIUM IN JOINT FLUID REMOVED FROM SEVENTY FIVE OF EIGHTY EIGHT PATIENTS WHO HAD CHRONIC ARTHRITIS APPARENTLY CAUSED BY THE DISEASE MOST OF THE PATIENTS HADN'T BEEN PROPERLY TREATED WITH ANTIBIOTICS WHICH CAN DESTROY THE BACTERIUM AND CURE THE ILLNESS QUOTE THE RESULTS OF THIS STUDY REPRESENT A MAJOR ADVANCE IN OUR ABILITY TO DETECT THE BACTERIUM QUOTE SAID ALLEN C. STEERE CHIEF OF RHEUMATOLOGY SLASH IMMUNOLOGY AT NEW ENGLAND MEDICAL CENTER IN BOSTON WHO HEADED THE NEW RESEARCH LYME DISEASE IS CAUSED BY INFECTION FROM A SPIROCHETE BACTERIUM CALLED BORRELIA BURGDORFERI THAT IS TRANSMITTED TO HUMANS BY A TICK THAT PREVIOUSLY HAS BITTEN INFECTED DEER OR MICE THE INFECTION GENERALLY CAUSES A RASH AND FLULIKE SYMPTOMS IF UNTREATED IT CAN CAUSE CHRONIC ARTHRITIS AND OTHER ILLS IN NINETEEN NINETY TWO THE NATIONAL CENTERS FOR DISEASE CONTROL AND PREVENTION SAID ALMOST TEN THOUSAND CASES WERE REPORTED TO IT BUT DOCTOR STEERE SAID MORE THAN SEVENTY FIVE PERCENT OF PATIENTS REFERRED TO HIS CLINIC WERE WRONGLY DIAGNOSED WITH THE DISEASE MORE TROUBLING THE C. D. C. RECENTLY REPORTED THAT FOURTEEN CHILDREN TREATED AT ONE MEDICAL CENTER IN NEW JERSEY HAD TO HAVE THEIR GALLBLADDERS REMOVED BECAUSE THEY WERE TREATED EXCESSIVELY WITH ANTIBIOTICS THE C. D. C. SAID MOST OF THE CHILDREN SHOWED NO EVIDENCE OF EVER HAVING LYME DISEASE THE BLOOD TEST CURRENTLY USED CAN'T TELL WHETHER THE BACTERIUM IS STILL PRESENT IN A PATIENT AND THUS WHETHER A PATIENT'S ARTHRITIS IS THE RESULT OF AN ACTIVE INFECTION THAT COULD BE TREATED WITH ANTIBIOTICS THE NEW TEST DEVELOPED BY DOCTOR STEERE AND HIS COLLEAGUES AT TUFTS UNIVERSITY MEDICAL CENTER AND THE MAYO CLINIC CAN DETECT A GENE COMMON ONLY TO THE BACTERIUM THE TEST MAKES USE OF A RELATIVELY NEW TECHNIQUE CALLED P. C. R. WHICH HELPS IDENTIFY A GENE'S PRESENCE BY QUICKLY MAKING MILLIONS OF COPIES OF A GENE DOCTOR STEERE SAID THE TEST CAN FIND THE BACTERIUM ONLY IN JOINT FLUID NOTING THAT THE TEST ISN'T USEFUL FOR DETECTING EARLY LYME DISEASE THAT HAS YET TO CAUSE JOINT PROBLEMS USING THE P. C. R. METHOD THE RESEARCHERS SAID THEY IDENTIFIED THE BACTERIUM'S GENE IN FLUID REMOVED FROM ARTHRITIC JOINTS OF EIGHTY FIVE PERCENT OF THE EIGHTY EIGHT PATIENTS WITH LYME DISEASE ARTHRITIS THE RESEARCHERS FAILED TO FIND THE GENE IN FLUID FROM SIXTY FOUR PATIENTS WITHOUT THE DISEASE MOREOVER THE RESEARCHERS FOUND THE BACTERIUM IN SEVENTY OF SEVENTY THREE PATIENTS WHO HADN'T UNDERGONE ANTIBIOTIC THERAPY OR WHOSE THERAPY WAS INADEQUATE DOCTOR STEERE WHOSE RESEARCH TEAM REPORTED THE STUDY RESULTS IN TODAY'S ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE SAID THE P. C. R. TEST SHOULD BE ABLE TO IDENTIFY WHICH PATIENTS HAVE ACTIVE INFECTIONS THAT WOULD BENEFIT FROM ANTIBIOTICS AND WHICH INFECTED PATIENTS ALREADY TREATED MIGHT BENEFIT FROM ADDITIONAL ANTIBIOTICS HE ADDED THAT THE P. C. R. TEST IS A COMPLEX PAINSTAKING PROCEDURE TO PERFORM THAT LABORATORIES NEED TO TAKE EXTRAORDINARY PRECAUTIONS AGAINST CONTAMINATION THAT COULD PRODUCE FALSE POSITIVE RESULTS AND THAT THE TEST IS COSTLY ALL OF WHICH MIGHT HAMPER ITS WIDESPREAD USE CHRISTOPHER W. BEALE FORTY SIX YEARS OLD WAS NAMED A MANAGING DIRECTOR OF THIS FINANCIAL SERVICES FIRM AND CO HEAD OF ITS GLOBAL PROJECT FINANCE AND LEASING GROUP A NEW POSITION MR. BEALE WAS MOST RECENTLY CHAIRMAN OF BEALE LYNCH PARTNERS L. P. A PROJECT FINANCING COMPANY IN NEW YORK FIRMER FINANCIAL ISSUES SPURRED ON BY STRONG BONDS HELPED TO LIFT SMALL COMPANY STOCKS FROM THE LOWER LEVELS OF THE PAST TWO SESSIONS THE RUSSELL TWO THOUSAND INDEX WHICH MEASURES THE PERFORMANCE OF SMALL CAPITALIZATION ISSUES TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES ROSE ZERO POINT SEVEN NINE OR ZERO POINT THREE ZERO PERCENT TO TWO HUNDRED SIXTY TWO POINT EIGHT FOUR MONDAY AND TUESDAY THE INDEX LOST ONE POINT SEVEN FIVE OR ZERO POINT SIX SIX PERCENT AFTER POSTING A CLOSING RECORD FRIDAY THE TREASURY'S THIRTY YEAR BOND ENDED UP NEARLY ONE HALF POINT BOOSTING INTEREST RATE SENSITIVE STOCKS WAINWRIGHT BANK AND TRUST BOSTON JUMPED ONE TO FOUR AND ONE QUARTER SELECTIVE INSURANCE GROUP BRANCHVILLE N. J. ADDED ONE AND ONE QUARTER TO TWENTY NINE AND ONE QUARTER AND ANCHOR BANCORP WISCONSIN MADISON WISCONSIN ROSE SEVEN EIGHTHS TO TWENTY FOUR AFTER POSTING IMPROVED FISCAL THIRD QUARTER EARNINGS BALTIMORE BASED INVESTMENT FIRM ALEXANDER BROWN N. Y. S. E. CLOSED UP ONE HALF AT TWENTY FIVE AND FIVE EIGHTHS FOLLOWING STRONG FOURTH QUARTER AND FULL YEAR RESULTS ANNOUNCED AFTER THE CLOSE OF TRADING THE COMPANY REPORTED FOURTH QUARTER NET OF TWO DOLLARS AND FORTY TWO CENTS A SHARE UP FROM ONE DOLLAR AND THIRTY SEVEN CENTS A YEAR EARLIER FOR THE YEAR NET WAS FIVE DOLLARS AND SIXTY ONE CENTS A SHARE UP FROM THREE DOLLARS AND SEVENTY TWO CENTS IN NINETEEN NINETY TWO TRANSPORTATION STOCKS ALSO WERE STRONG WITH TRUCKERS FARING PARTICULARLY WELL CONSOLIDATED FREIGHTWAYS N. Y. S. E. PALO ALTO CALIFORNIA EDGED UP ONE EIGHTH TO TWENTY FIVE AND THREE EIGHTHS YELLOW CORPORATION OVERLAND PARK KANSAS ADDED ONE HALF TO TWENTY SEVEN AND ONE EIGHTH AND MEMPHIS TENNESSEE BASED M. S. CARRIERS MOVED ONE AND ONE QUARTER HIGHER TO TWENTY FOUR AND THREE QUARTERS ANOTHER GROUP FILLED WITH STANDOUTS WAS THE COMMUNICATIONS SECTOR JONES SPACELINK ENGLEWOOD COLORADO ROSE THREE EIGHTHS TO TWO AND FIVE EIGHTHS AND AMERICAN BUSINESS INFORMATION OMAHA NEBRASKA JUMPED TWO TO SEVENTEEN IN A QUOTE BRAND NAME QUOTE INITIAL PUBLIC OFFERING PLAYTEX PRODUCTS INCORPORATED WAS PRICED AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK EXCHANGE AT THIRTEEN DOLLARS A SHARE OR THE LOW END OF ITS PROPOSED THIRTEEN DOLLARS TO FIFTEEN DOLLAR RANGE THROUGH LEAD UNDERWRITER MERRILL LYNCH PLAYTEX MAKES TAMPONS AND INFANT CARE PRODUCTS THE TWENTY MILLION SHARE OFFERING CO MANAGED BY DONALDSON LUFKIN AND JENRETTE MORGAN STANLEY AND SMITH BARNEY SHEARSON COMES AS THE COMPANY IS BEGINNING TO SEE A TURNAROUND IN ITS RESULTS SAYS LINDA KILLIAN A PRINCIPAL IN RENAISSANCE CAPITAL A GREENWICH CONNECTICUT INSTITUTIONAL RESEARCH FIRM THAT SPECIALIZES IN I. P. O.S THE I. P. O. IS A PLAY ON THE PLAYTEX BRAND YET BRAND NAMES HAVE COME UNDER A LOT OF PRESSURE SHE SAID NOTING THAT THE ISSUE IS NOT ONE OF A SMALL HANDFUL OF NEW ISSUES THAT RENAISSANCE HAS FELT COMFORTABLE RECOMMENDING AS A BUY THIS YEAR ON THE EARNINGS FRONT THREE FIVE SYSTEMS AMEX A PHOENIX OPTO ELECTRONIC PRODUCTS COMPANY SURGED SEVEN TO FORTY THREE AND ONE HALF THE COMPANY SAID ITS FOURTH QUARTER EARNINGS ROSE TO FIFTY ONE CENTS A SHARE FROM TWELVE CENTS A YEAR EARLIER QUICKRESPONSE SERVICES A RICHMOND CALIFORNIA PROVIDER OF DATA AND NETWORK SERVICES JUMPED TWO TO TWENTY TWO AND ONE HALF LATE TUESDAY THE COMPANY SAID FOURTH QUARTER EARNINGS CLIMBED TO FOURTEEN CENTS A SHARE FROM ONE CENT A YEAR EARLIER STARTER N. Y. S. E. TUMBLED THREE AND ONE QUARTER TO TWELVE AND ONE QUARTER THE SPORTSWEAR MAKER BASED IN NEW HAVEN CONNECTICUT SAID AFTER THE CLOSE TUESDAY THAT IT EXPECTS FOURTH QUARTER NET OF SIX CENTS TO NINE CENTS A SHARE COMPARED WITH PRO FORMA EARNINGS OF FOURTEEN CENTS A YEAR EARLIER MERRILL LYNCH AND COMPANY CUT STARTER TO NEAR TERM NEUTRAL FROM ABOVE AVERAGE BUTLER MANUFACTURING A KANSAS CITY MISSOURI MAKER OF PRE ENGINEERED BUILDING SYSTEMS FELL TWO AND THREE QUARTERS TO TWENTY FIVE AND ONE QUARTER THE COMPANY SAID ITS FOURTH QUARTER OPERATING PROFIT ROSE TO FORTY THREE CENTS A SHARE FROM THIRTY FIVE CENTS A YEAR EARLIER BUTLER EXPECTS ITS FIRST QUARTER LOSS TO WIDEN FROM THE TWENTY SEVEN CENTS REPORTED A YEAR EARLIER ALSO BUTLER SAID THE SALE OF ITS WALKER DIVISION WILL BE SOMEWHAT DILUTIVE IN THE NEAR TERM THOUGH THE SALE WILL BENEFIT THE COMPANY BY REDUCING INTEREST EXPENSE THE OVERALL EFFECT WILL BE TO LOWER NINETEEN NINETY FOUR EARNINGS BY THIRTY EIGHT CENTS A SHARE A FIRST ALBANY DOWNGRADE TO NEUTRAL FROM BUY PUSHED MEDUSA N. Y. S. E. DOWN TWO AND THREE QUARTERS TO THIRTY ONE AND THREE QUARTERS THE BROKERAGE FIRM SAID IT CUT THE RATING BASED ON THE PRICE OF THE CLEVELAND HEIGHTS OHIO CEMENT COMPANY'S STOCK NEWS THAT COBRA INDUSTRIES N. Y. S. E. GOT AN ORDER FOR THREE HUNDRED OF ITS PARK MODEL RECREATIONAL VEHICLES WHICH RETAIL FOR EIGHTEEN THOUSAND FIVE HUNDRED DOLLARS TO TWENTY TWO THOUSAND DOLLARS LIFTED THE GOSBEN INDIANA COMPANY'S STOCK ONE TO EIGHT AND ONE HALF INCYTE PHARMACEUTICALS PALO ALTO CALIFORNIA ZOOMED ONE AND ONE QUARTER HIGHER TO TEN AND ONE HALF THE COMPANY SAID IT RECEIVED WORD FROM THE EUROPEAN PATENT OFFICE THAT IT PLANS TO GRANT THE COMPANY A FUNDAMENTAL PATENT COVERING THE D. N. A. MOLECULE AND METHODS FOR RECOMBINANT PRODUCTION OF BACTERICIDAL SLASH PERMEABILITY INCREASING PROTEIN THE PROTEIN MAY HAVE THERAPEUTIC VALUE TO TREAT LIFE THREATENING CONDITIONS SUCH AS ADULT RESPIRATORY DISTRESS SYNDROME HEMORRHAGIC SHOCK AND FATAL COMPLICATIONS OF INFECTION BURNS AND TRAUMA WILLIAM HANEMAN SENIOR VICE PRESIDENT OF NASDAQ OVER THE COUNTER TRADING AT LEGG MASON WOOD WALKER SAID FINANCIAL STOCKS ARE HOLDING UP NICELY ALSO BECAUSE THEY'VE HAD SOME GOOD EARNINGS WITHOUT ANY MAJOR SURPRISES ANCHOR BANCORP WISCONSIN FOR EXAMPLE POSTED THIRD QUARTER EARNINGS OF SEVENTY TWO CENTS A SHARE ABOVE ANALYSTS' ESTIMATES OF SEVENTY CENTS IN THE YEAR EARLIER QUARTER THE COMPANY HAD NET INCOME OF FIFTY SIX CENTS BUT YESTERDAY'S MOVE HIGHER WASN'T CONFINED TO THE RATE SENSITIVE GROUP LARRY KINNEY HEAD OF OVER THE COUNTER TRADING AT SOUNDVIEW SAID THE BOND RALLY CONTINUED OPTIMISM OVER THE EARNINGS FLOW AND A BOUNCEBACK FROM TUESDAY ALL PLAYED A ROLE IN THE ADVANCE THE NASDAQ COMPOSITE INDEX GAINED TWO POINT FOUR ONE OR ZERO POINT THREE ONE PERCENT TO END AT SEVEN HUNDRED EIGHTY EIGHT POINT EIGHT OH AFTER LOSING A TOTAL OF SEVEN POINT EIGHT EIGHT OR ZERO POINT NINE NINE PERCENT IN THE PAST TWO DAYS FOLLOWING FRIDAY'S RECORD SETTING SESSION ADVANCING ISSUES BEAT OUT NASDAQ DECLINERS ONE THOUSAND SEVEN HUNDRED FORTY SIX TO ONE THOUSAND THREE HUNDRED SIXTY FIVE ON NASDAQ NATIONAL MARKET VOLUME OF TWO HUNDRED SIXTY EIGHT MILLION FIVE HUNDRED FIFTY SEVEN THOUSAND SHARES DOWN FROM THREE HUNDRED NINE MILLION SEVENTY THOUSAND ONE HUNDRED SHARES YESTERDAY OVERALL VOLUME SLIPPED TO THREE HUNDRED FIFTEEN MILLION FIVE HUNDRED FORTY THREE THOUSAND THREE HUNDRED SHARES FROM THREE HUNDRED FIFTY TWO MILLION THREE HUNDRED FIFTY ONE THOUSAND YESTERDAY NASDAQ NATIONAL MARKET STOCKS THAT SET HIGHS FOR THE YEAR TO DATE TOTALED NINETY FOUR WHILE SIXTEEN HIT LOWS WARREN GETLER CONTRIBUTED TO THIS ARTICLE COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE LITWIN ENGINEERS AND CONSTRUCTORS A UNIT OF UNITED DOMINION INDUSTRIES LIMITED SAID IT WAS AWARDED A CONTRACT TO SUPPLY ENGINEERING DESIGN PROCUREMENT AND CONSTRUCTION SERVICES TO TEXACO INCORPORATED IN CONNECTION WITH THE UPGRADING OF ITS REFINERY IN COLON PANAMA A SPOKESMAN FOR UNITED DOMINION A CONSTRUCTION AND ENGINEERING CONCERN BASED IN CHARLOTTE N. C. DECLINED TO DISCLOSE THE VALUE OR TERMS OF THE MULTIYEAR CONTRACT LITWIN SAID THE TOTAL COST OF THE UPGRADING PROJECT IS ABOUT EIGHTY MILLION DOLLARS PHILIP MORRIS COMPANIES REPORTED STEEP DECLINES IN PROFIT FOR THE QUARTER AND THE YEAR REFLECTING ITS DECISION IN APRIL TO SLASH PRICES ON PREMIUM CIGARETTE BRANDS AND ITS PREVIOUSLY ANNOUNCED RESTRUCTURING CHARGES FOR THE QUARTER THE TOBACCO AND FOOD GIANT SAID NET INCOME FELL SEVENTY TWO PERCENT TO THREE HUNDRED THIRTY NINE MILLION DOLLARS OR THIRTY EIGHT CENTS A SHARE FROM ONE POINT TWO BILLION DOLLARS OR ONE DOLLAR AND THIRTY FOUR CENTS A SHARE A YEAR EARLIER A RESTRUCTURING CHARGE ANNOUNCED IN NOVEMBER TO COVER THE ELIMINATION OF FOURTEEN THOUSAND JOBS OR EIGHT PERCENT OF THE COMPANY'S WORLD WIDE WORK FORCE AND TO CLOSE AS MANY AS FORTY PLANTS REDUCED EARNINGS FOUR HUNDRED FIFTY SEVEN MILLION DOLLARS OR FIFTY TWO CENTS A SHARE REVENUE IN THE QUARTER FELL ONE POINT FOUR PERCENT TO FOURTEEN POINT SEVEN ONE BILLION DOLLARS FROM FOURTEEN POINT NINE TWO BILLION DOLLARS MICHAEL A. MILES CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID PHILIP MORRIS EMERGED FROM THE YEAR AS A STRONGER MORE COMPETITIVE COMPANY OVERALL HE SAID COST REDUCTIONS QUOTE SHOULD CONTRIBUTE TO NINETEEN NINETY FOUR PROFIT GROWTH IN ALL OUR BUSINESSES QUOTE FOR THE YEAR OPERATING PROFIT AT THE COMPANY'S DOMESTIC TOBACCO BUSINESS WAS DOWN FORTY SIX PERCENT SLIGHTLY MORE THAN THE COMPANY PREDICTED IN NOVEMBER TO TWO POINT EIGHT BILLION DOLLARS FROM FIVE POINT ONE NINE BILLION DOLLARS IN NINETEEN NINETY TWO THE DROP CAME AS THE COMPANY SLASHED PRICES ON ITS MARLBORO BRAND AND OTHER PREMIUM BRANDS AS MUCH AS TWENTY PERCENT IN RESPONSE TO INCREASING COMPETITION BY DISCOUNT BRANDS PHILIP MORRIS SAID THE STRATEGY HELPED IT TO REGAIN MARKET SHARE IN THE PREMIUM CATEGORY IN NOVEMBER THE COMPANY RAISED PRICES ABOUT FIVE PERCENT ON PREMIUM BRANDS AND ABOUT SEVEN PERCENT ON DISCOUNT BRANDS ANALYSTS EXPECT FURTHER PRICE INCREASES THIS YEAR THE RESULTS WERE BORING FROM A NUMBERS STANDPOINT BUT THE NINETY FOUR NUMBERS ARE SHAPING UP TO BE BETTER THAN PEOPLE EXPECTED PARTICULARLY FOR DOMESTIC TOBACCO BECAUSE THE PRICE WAR IS OVER SAID GARY BLACK OF SANFORD C. BERNSTEIN AND COMPANY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY PHILIP MORRIS SHARES JUMPED ONE POINT THREE SEVEN FIVE DOLLARS TO FIFTY NINE DOLLARS AND TWENTY FIVE CENTS THE STOCK HAS NEARLY RECOVERED AFTER PLUNGING MORE THAN TWENTY PERCENT TO BELOW FIFTY DOLLARS IN THE WAKE OF APRIL'S ANNOUNCEMENT REFLECTING STABILITY IN DOMESTIC TOBACCO PRODUCTS SAID LEIGH FERST OF PRUDENTIAL SECURITIES BUT SHE EXPRESSED WORRY THAT THE CORE BUSINESSES COULD SEE A PROFIT DECLINE IN NINETEEN NINETY FIVE WHEN LARGE FEDERAL EXCISE TAX INCREASES COULD GO INTO EFFECT TO FINANCE HEALTH CARE REFORM FOR THE YEAR PHILIP MORRIS POSTED A THIRTY SEVEN PERCENT DECLINE IN EARNINGS TO THREE POINT OH NINE BILLION DOLLARS OR THREE DOLLARS AND FIFTY TWO CENTS A SHARE FROM FOUR POINT NINE FOUR BILLION DOLLARS OR FIVE DOLLARS AND FORTY FIVE CENTS A SHARE IN ADDITION TO THE RESTRUCTURING CHARGE THE NINETEEN NINETY THREE RESULTS INCLUDED A FOUR HUNDRED NINETY FIVE MILLION DOLLAR NON CASH CHARGE RELATED TO AN ACCOUNTING CHANGE FOR POST EMPLOYMENT BENEFITS REVENUE ROSE THREE PERCENT TO SIXTY POINT NINE BILLION DOLLARS FROM FIFTY NINE POINT ONE THREE BILLION DOLLARS WESTWOOD ONE INCORPORATED SETTLED SECURITIES AND EXCHANGE COMMISSION CHARGES THAT THE RADIO PROGRAM DISTRIBUTOR AND NETWORK OPERATOR FRAUDULANTLY MISSTATED FINANCIAL RESULTS IN THE COMPANY'S FISCAL NINETEEN EIGHTY SEVEN AND NINETEEN EIGHTY EIGHT THE S. E. C. ALLEGED THAT WESTWOOD ONE FORMER COMPANY PRESIDENT WILLIAM J. BATTISON AND CURRENT SENIOR VICE PRESIDENT GARY J. YUSKO EMPLOYED IMPROPER ACCOUNTING AND DISCLOSURE PRACTICES LEADING TO QUOTE MATERIAL OVERSTATEMENTS QUOTE OF SOME QUARTERLY OPERATING RESULTS IN THE TWO PERIODS THE FRAUD AND IMPROPER ACCOUNTING PRACTICES TOGETHER TOTALED SIX POINT SEVEN MILLION DOLLARS IN PRETAX OPERATING PROFIT IN FISCAL NINETEEN EIGHTY SEVEN EQUAL TO FORTY FOUR PERCENT OF THE PROFIT ACTUALLY REPORTED AND TOTALED FIVE POINT THREE MILLION DOLLARS IN FISCAL NINETEEN EIGHTY EIGHT OR NEARLY TRIPLE THE REPORTED PROFIT THE S. E. C. SAID THE COMPANY'S FISCAL YEAR ENDS NOVEMBER THIRTIETH WESTWOOD ONE AND MESSRS BATTISON AND YUSKO AGREED TO AVOID FURTHER VIOLATIONS AS PART OF THE SETTLEMENT THE PARTIES DIDN'T ADMIT OR DENY GUILT IN THE S. E. C. ADMINISTRATIVE ACTION MR. BATTISON FORTY FOUR YEARS OLD RESIGNED FROM THE COMPANY IN NINETEEN NINETY TWO MR. YUSKO THIRTY EIGHT WHO WAS VICE PRESIDENT FOR FINANCIAL OPERATIONS AND CHIEF ACCOUNTING OFFICER UNTIL DECEMBER NINETEEN NINETY ONE IS NOW SENIOR VICE PRESIDENT FOR FINANCIAL OPERATIONS A WESTWOOD ONE SPOKESWOMAN SAID THE SETTLEMENT BRINGS BASICALLY A VERY OLD MATTER TO A CONCLUSION WITHOUT ANY FINE OR FINANCIAL PENALTY TO THE COMPANY WHILE RELIEVING IT OF THE CONSIDERABLE FINANCIAL BURDEN OF CONTINUED LITIGATION MESSRS BATTISON AND YUSKO COULDN'T BE REACHED FOR COMMENT THE S. E. C. CHARGED THAT DURING THE TWO YEARS WESTWOOD ONE HAD ENGAGED IN IMPROPER REVENUE RECOGNITION PRACTICES TO AVOID REPORTING ITS FIRST QUARTERLY OPERATING LOSS SINCE THE COMPANY'S NINETEEN EIGHTY FOUR INITIAL PUBLIC OFFERING AMONG THE S. E. C. CHARGES WERE THAT THE COMPANY HAD FAILED TO DISCLOSE MATERIAL INFORMATION ABOUT ITS OPERATING RESULTS FINANCIAL STATEMENT AND ACCOUNTING POLICIES SPECIFICALLY THE AGENCY SAID WESTWOOD ONE HAD PLACED IMPROPER VALUES ON RADIO ADVERTISEMENTS SOLD IN NONCASH EXCHANGES OF ADVERTISING TIME AND HAD RECORDED SOME ADVERTISING CONTRACT REVENUE PREMATURELY AMONG OTHER ITEMS THE S. E. C. LISTED AS IMPROPERLY ACCOUNTED FOR WERE WESTWOOD ONE EXECUTIVE CASH BONUSES IN FISCAL NINETEEN EIGHTY SEVEN INTANGIBLE ASSETS RELATED TO THE NINETEEN EIGHTY SEVEN ACQUISITION OF THE N. B. C. RADIO NETWORK AND AMOUNTS INVOLVED WITH N. B. C.'S ACQUISITION OF RIGHTS TO BROADCAST THE NINETEEN EIGHTY EIGHT SUMMER OLYMPICS FROM SEOUL SOUTH KOREA WESTWOOD ONE WHICH OPERATES THE MUTUAL BROADCASTING SYSTEM THE N. B. C. RADIO NETWORK AND OTHER RADIO NETWORKS HAD DISCLOSED THAT S. E. C. SETTLEMENT TALKS WERE UNDER WAY IN A FILING CONNECTED WITH WESTWOOD ONE'S AGREEMENT TO BUY THE RADIO NETWORK BUSINESS OF INFINITY BROADCASTING CORPORATION'S UNISTAR RADIO NETWORKS INCORPORATED UNIT IN NASDAQ STOCK MARKET TRADING WESTWOOD ONE SHARES ROSE TWELVE POINT FIVE CENTS APIECE TO EIGHT DOLLARS PHILIP MORRIS ESPANA S. A. THE SPANISH UNIT OF FOOD AND TOBACCO CONCERN PHILIP MORRIS COMPANIES OF THE U. S. SOLD ITS ONE POINT EIGHT PERCENT STAKE IN THE SPANISH STATE RUN TOBACCO MONOPOLY TABACALERA S. A. A TABACALERA SPOKESMAN SAID THE STAKE WAS SOLD TO INSTITUTIONAL INVESTORS AND DECLINED TO DISCLOSE THE PRICE PHILIP MORRIS ESPANA FIFTY PERCENT HELD BY PHILIP MORRIS AND FIFTY PERCENT HELD BY TABACALERA PRODUCES AND MARKETS PHILIP MORRIS BRANDS IN SPAIN RAYTHEON COMPANY SAID THE NAVY SPACE AND NAVAL WARFARE SYSTEMS COMMAND AWARDED IT A SEVENTY NINE POINT SEVEN MILLION DOLLAR CONTRACT TO PRODUCE SIXTY TWO SATELLITE TERMINALS FOR THE NAVY'S EXTREMELY HIGH FREQUENCY SATELLITE COMMUNICATIONS PROGRAM THE MAKER OF MISSILES AIRCRAFT AND APPLIANCES SAID THE CONTRACT COVERS TERMINALS FOR SHIP SUBMARINE AND SHORE STATIONS AS WELL AS TRAINING DOCUMENTATION AND RELATED SUPPORT ITEMS THE TERMINALS WHICH PROVIDE SECURE COMMUNICATIONS WILL BE PRODUCED AT RAYTHEON'S MANUFACTURING PLANT IN WALTHAM MASSACHUSETTS WITH ENGINEERING WORK TO BE PERFORMED AT MARLBORO MASSACHUSETTS NET ROSE TO FORTY SEVEN POINT ONE MILLION DOLLARS OR FORTY SEVEN CENTS A SHARE FROM THE YEAR EARLIER TWENTY NINE POINT EIGHT MILLION DOLLARS OR THIRTY CENTS A SHARE OPERATING INCOME ROSE TWENTY SEVEN PERCENT TO ONE HUNDRED ONE POINT SIX MILLION DOLLARS WHILE REVENUE ROSE SEVEN POINT SEVEN PERCENT TO FIVE HUNDRED TWELVE POINT SEVEN MILLION DOLLARS IN THE QUARTER REVENUE FOR THE INFORMATION SERVICES SEGMENT WHICH INCLUDES RESULTS OF THE DOW JONES SLASH TELERATE AND BUSINESS INFORMATION SERVICES GROUPS ROSE FIVE POINT THREE PERCENT TO TWO HUNDRED TWENTY THREE POINT FIVE MILLION DOLLARS WHILE OPERATING INCOME ROSE FIFTEEN PERCENT TO FORTY THREE POINT TWO MILLION DOLLARS FOR BUSINESS PUBLICATIONS INCLUDING THE WALL STREET JOURNAL AND ITS OVERSEAS EDITIONS BARRON'S MAGAZINE AND OTHER PUBLICATIONS REVENUE ROSE ELEVEN PERCENT TO TWO HUNDRED TWENTY FOUR POINT THREE MILLION DOLLARS WHILE OPERATING INCOME ROSE THIRTY EIGHT PERCENT TO FIFTY POINT SIX MILLION DOLLARS WALL STREET JOURNAL ADVERTISING LINAGE ROSE TEN PERCENT IN THE QUARTER AND THREE POINT THREE PERCENT IN THE YEAR AT THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS REVENUE ROSE FOUR POINT TWO PERCENT TO SIXTY FOUR POINT NINE MILLION DOLLARS AND OPERATING INCOME ROSE EIGHTEEN PERCENT TO ELEVEN POINT FOUR MILLION DOLLARS AD LINAGE ROSE ONE PERCENT IN THE QUARTER AND ZERO POINT SIX PERCENT IN THE YEAR IN THE YEAR DOW JONES NET ROSE THIRTY SEVEN PERCENT TO ONE HUNDRED FORTY SEVEN POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND FORTY EIGHT CENTS A SHARE FROM ONE HUNDRED SEVEN POINT SIX MILLION DOLLARS OR ONE DOLLAR AND SIX CENTS A SHARE A YEAR EARLIER YEAR EARLIER NET INCLUDED A TEN POINT EIGHT MILLION DOLLAR OR ELEVEN CENT A SHARE ONE TIME NET CHARGE FOR ACCOUNTING CHANGES AND AN EIGHT MILLION DOLLAR OR EIGHT CENT A SHARE CHARGE FOR WRITE DOWNS OF INVESTMENTS EXCLUDING THE NONRECURRING CHARGES EARNINGS ROSE SEVENTEEN PERCENT DOW JONES SAID FULL YEAR INCREASES WERE MOSTLY DUE TO ADVERTISING LINAGE GAINS AT THE WALL STREET JOURNAL AND BARRON'S IMPROVED OPERATING RESULTS FOR THE INFORMATION SERVICES SEGMENT AND REDUCED INTEREST EXPENSE OPERATING INCOME IN NINETEEN NINETY THREE ROSE THIRTEEN PERCENT TO THREE HUNDRED SIXTEEN POINT FIVE MILLION DOLLARS REVENUE ROSE SIX POINT THREE PERCENT TO ONE POINT NINE THREE BILLION DOLLARS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE DOW JONES SHARES CLOSED AT THIRTY EIGHT DOLLARS AND SEVENTY FIVE CENTS DOWN TWENTY FIVE CENTS WE HEAR A LOT ABOUT WELFARE REFORM AND CERTAINLY THE PRESIDENT FOUND THE TOPIC USEFUL IN HIS STATE OF THE UNION SPEECH BUT WHY DON'T WE LOOK AT SOMETHING SPECIFIC THE ONE HUNDRED THIRTY ONE BILLION DOLLARS ELEPHANT CALLED MEDICAID MEDICAID HAS MOVED CONSIDERABLY BEYOND ITS ORIGINAL WELFARE BOUNDS WHEN IT WAS CREATED IN THE GREAT SOCIETY IT MAY SURPRISE YOU TO LEARN THAT MEDICAID MEANING FEDERAL AND STATE TAXPAYERS NOW PAYS FOR NEARLY HALF OF THIS COUNTRY'S BIRTHS THAT'S RIGHT UNDER PROVISIONS OF THE PREGNANT WOMEN AND CHILDREN PROGRAM THAT CALIFORNIA CONGRESSMAN HENRY WAXMAN AND OTHERS WEAVED INTO THE MEDICAID LAW IN RECENT YEARS STATES ON AVERAGE ARE PROVIDING PRENATAL OBSTETRIC AND SLASH OR ONE YEAR'S FOLLOW UP SERVICES TO WELL OVER FORTY PERCENT OF WOMEN GIVING BIRTH THE CHILD OF COURSE IMMEDIATELY BECOMES A MEDICAID BENEFICIARY THIS IS ALL BY DESIGN THE SPONSORS ARGUED THAT REDUCING THE PERCENTAGE OF LOW WEIGHT AND OTHERWISE PROBLEM BIRTHS WAS GOOD ECONOMIC AS WELL AS SOCIAL POLICY SO THEY ARRANGED FOR HOUSEHOLDS MAKING ONE HUNDRED THIRTY THREE PERCENT OF THE NATIONAL POVERTY LINE INCOME TO BE ELIGIBLE FOR THESE SERVICES IN SOME LOWER COST STATES THAT NATIONAL STANDARD RESULTS IN PERSONS OF MEDIAN INCOME QUALIFYING MOREOVER STATES HAVE THE OPTION OF RAISING THE BAR IN SOUTH CAROLINA YOU CAN MAKE ONE HUNDRED EIGHTY FIVE PERCENT OF THE U. S. POVERTY LEVEL AND BE COVERED SO FORTY NINE PERCENT OF BIRTHS THERE ARE UNDER MEDICAID THAT'S ONE REASON WHY THIS IS A NATIONAL PHENOMENON AND NOT SEEN JUST IN CALIFORNIA AND TEXAS WHERE MEDICAL WELFARE IS OUT OF CONTROL ANOTHER REASON IS THAT ELIGIBILITY IS BASED ON INCOME IN THE MONTH PRIOR TO APPLICATION THAT MEANS STATES WITH HIGHLY CYCLICAL EMPLOYMENT PATTERNS TYPICAL OF FARMING LOGGING OR MINING ARE LIKELY TO GET A RUSH OF TAX PAID BABIES DURING THE DOWN MONTHS THIS MAY EXPLAIN NORTH DAKOTA'S FORTY THREE PERCENT OF BIRTHS PAID FOR BY MEDICAID OR IDAHO'S NEARLY FORTY TWO PERCENT SHEILA SORENSEN WHO CHAIRS THE SENATE HEALTH AND WELFARE COMMITTEE IN IDAHO ENDORSES THE PROGRAM'S AIMS BUT SAYS IT HAS QUOTE OPENED THE FLOODGATES QUOTE BEYOND THE EXPECTATIONS OF ANYONE AT LEAST AT THE STATE LEVEL IN NINETEEN EIGHTY SEVEN IDAHO'S MEDICAID BIRTH RATE WAS SIX POINT SEVEN PERCENT LAST YEAR IN ONE OF ITS NORTHERN RESOURCE BASED COUNTIES IT EXCEEDED EIGHTY PERCENT THE PROBLEM AS SHE SEES IT IS THE APPROACH THE PROGRAM TAKES TO ENCOURAGING PREGNANT WOMEN TO ATTEND BETTER TO THEIR CONDITION INSTEAD OF SAYING WHAT ARE YOUR RESOURCES LET'S FIGURE OUT HOW YOU CAN AFFORD THIS MEDICAID LEADS WITH WE'LL PAY FOR IT SHE COMPLAINS THUS THE PREGNANCY BENEFITS ARE ONE MORE ENGINE POWERING THE MEDICAID ROCKET THAT HAS TAKEN THE STATES WHICH COVER FROM TWENTY FIVE PERCENT TO FORTY FIVE PERCENT OF THE COSTS INTO FISCAL ORBIT ALONG WITH THE FEDERAL GOVERNMENT IRONICALLY THE STATES HAVE JUST BEEN HIT AGAIN WITH A WHITE HOUSE MANDATE THAT THEY PROVIDE ABORTIONS HOW SUCCESSFUL THE LATEST WAXMAN INITIATIVE IS PROVING IN REDUCING LOW WEIGHT BIRTHS IS UNCERTAIN MISBEHAVIOR BY THE MOTHER INCLUDING SMOKING AND DRINKING IS THE CHIEF CAUSE OF THAT PROBLEM AND EXPERTS DISAGREE ABOUT THE EFFECTIVENESS OF PRE NATAL COUNSELING IN GETTING AT THAT AT THE SAME TIME IT'S UNCLEAR HOW MUCH THE NEW ELIGIBILITY STANDARDS ARE CONTRIBUTING TO THE ALARMING INCREASE IN ILLEGITIMATE BIRTHS CHANGES IN FEDERAL LAW AREN'T THE ONLY FACTOR HERE THE SHRINKING OF HEALTH INSURANCE COVERAGE AMONG LOW WAGE EARNERS HAS LED SOME TO MEDICAID BUT AS DOUGLAS BESHAROV OF THE AMERICAN ENTERPRISE INSTITUTE POINTS OUT THE DYNAMICS OF THIS PROGRAM ALSO SERVE TO WIDEN ITS NET UNDER A GREATER SECTION OF THE AMERICAN MIDDLE CLASS DO WE WANT A SYSTEM THAT CREATES SOCIALIZED MEDICINE FOR SUCH A LARGE PORTION OF AMERICANS AT A CERTAIN POINT IN THEIR LIVES HE ASKS IF YOU ARE HENRY WAXMAN OR SOME LIKE MINDED FOLKS IN THE WHITE HOUSE EAGER TO HOOK MIDDLE AMERICA ON A BENEFIT AND CREATE A CONSTITUENCY FOR ITS PERENNIAL EXPANSION YOU PROBABLY DO AND YOU ARE SUCCEEDING HOW SPECULATIVE DOES SOMETHING HAVE TO BE BEFORE YOU FAIL TO MENTION IT IN YOUR EDITORIALS YOUR JANUARY EIGHTEENTH ATTEMPT TO SOMEHOW LINK B. C. C. I. WHITEWATER AND JAMES MCDOUGAL TO STEPHENS IS ABSURD SINCE NO ONE HAS BOTHERED TO ASK I THOUGHT I WOULD GIVE YOU THE TIME FRAME IN WHICH THESE EVENTS OCCURRED THE STOCK PURCHASES IN FIRST AMERICAN BANK BY WHAT WE AND EVERYONE ELSE THOUGHT WERE FOUR INDIVIDUALS ACTING ON THEIR OWN BEHALF OCCURRED IN NINETEEN SEVENTY SEVEN THAT WAS THE LAST WE HEARD FROM THEM APPARENTLY IN NINETEEN EIGHTY TWO AND NINETEEN EIGHTY THREE WORTHEN BANK LOANED JAMES MCDOUGAL A TOTAL OF TWO HUNDRED FIFTY THOUSAND DOLLARS TO FIRST BUY INTO AND THEN ACQUIRE CONTROL IN MADISON GUARANTY THESE LOANS OCCURRED BEFORE OUR INVESTMENT IN WORTHEN IN NOVEMBER NINETEEN EIGHTY THREE I AM INFORMED THAT WORTHEN SUBSEQUENTLY CHARGED OFF ONE HUNDRED THOUSAND DOLLARS OF THESE LOANS IN NINETEEN EIGHTY SEVEN CLOSING ITS BOOKS ON THE SUBJECT THE WORTHEN LOAN TO THE CLINTON CAMPAIGN WHICH AS I HAVE EXPLAINED BEFORE WAS SECURED BY RECEIVABLES FROM THE FEDERAL ELECTION COMMISSION WAS MADE IN NINETEEN NINETY TWO WE FIRST LEARNED OF THIS LOAN FROM LOCAL NEWSPAPER ACCOUNTS HOW YOU CAN POSSIBLY SUGGEST THERE IS A CONNECTION BETWEEN THESE TOTALLY UNRELATED EVENTS IS BEYOND ME LINKING THEM TOGETHER IN ONE PARAGRAPH AS YOU HAVE NOW DONE TWICE IS TRULY A MODERN JOURNALISTIC FEAT YOU ARE DELIBERATELY COMPRESSING THIS TIME LINE TO SUIT YOUR VIEWS WE EXPECTED THAT YOU WOULD TRY BUT WE NEVER DREAMED YOU WOULD IGNORE THE TOTAL TIME FRAME AND THE ELAPSED TIME BETWEEN THESE EVENTS YOUR DELIBERATE CREATION OF THE FALSE IMPRESSION THAT THESE EVENTS OVERLAP AND ARE CONNECTED JUST CONTINUES THE MALICIOUS PATTERN OF THE WALL STREET JOURNAL TOWARD OUR FIRM AND FAMILY PACIFIC ENTERPRISES SAID IT AGREED TO A SETTLEMENT THAT WILL PAY FORTY FIVE MILLION DOLLARS FOR SHAREHOLDER LAWSUITS RELATED TO THE UTILITY COMPANY'S FAILED DIVERSIFICATION EFFORT INCLUDED IN THE SETTLEMENT ARE THE COMPANY'S AUDITORS DELOITTE AND TOUCHE AS WELL AS INSURERS PACIFIC ENTERPRISES SAID PACIFIC ENTERPRISES SAID ITS NET COST IN THE SETTLEMENT WILL BE SEVENTEEN MILLION DOLLARS WHICH THE COMPANY SAID WON'T HAVE A MATERIAL EFFECT ON ITS FINANCIAL POSITION OR ITS DIVIDEND POLICY RESERVES FOR THE SETTLEMENT HAVE BEEN TAKEN EARLIER A SPOKESMAN SAID A SPOKESMAN FOR DELOITTE AND TOUCHE DECLINED TO CONFIRM THE ACCOUNTING FIRM'S PARTICIPATION IN THE SETTLEMENT OR TO DISCLOSE THE PORTION OF THE FORTY FIVE MILLION DOLLARS FOR WHICH THE NEW YORK BASED ACCOUNTING FIRM MIGHT BE LIABLE THE PROPOSED SETTLEMENT IS SUBJECT TO APPROVAL BY THE FEDERAL DISTRICT COURT IN LOS ANGELES WHERE VARIOUS LITIGATION HAS BEEN CONSOLIDATED THE SHAREHOLDER SUITS ALLEGED THAT OFFICERS DIRECTORS AND FORMER DIRECTORS OF PACIFIC ENTERPRISES BREACHED THEIR FIDUCIARY DUTY WITH AN ILL STARRED DIVERSIFICATION PROGRAM PACIFIC ENTERPRISES' SUDDEN AND IMPROBABLE SWERVE INTO DISCOUNT DRUG AND SPORTS EQUIPMENT RETAILING AS WELL AS OIL AND GAS OPERATIONS ABSORBED MORE THAN TWO BILLION DOLLARS AND THREW THE COMPANY NEAR THE BRINK OF A BANKRUPTCY FILING IN THE PAST TWO YEARS PACIFIC ENTERPRISES HAS DISPOSED OF VARIOUS ASSETS RESTRUCTURED ITS DEBT AND RE ESTABLISHED ITS DIVIDEND THE COMPANY SAID THE SETTLEMENT DOESN'T DIRECTLY AFFECT SOUTHERN CALIFORNIA GAS COMPANY THE REGULATED UTILITY WHOSE BUSINESS IS NOW PACIFIC ENTERPRISES' SOLE MAJOR OPERATING ENTITY QUOTE PUTTING THESE LAWSUITS BEHIND US NOW REMOVES THE UNCERTAINTY COST BURDEN AND MANAGEMENT DIVERSION ASSOCIATED WITH DEFENDING THESE COMPLEX MATTERS IN A JURY TRIAL QUOTE SAID THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIS B. WOOD ONE OF THE MOST DRAMATIC THEMES OF OUR ERA IS A WORLD WIDE CONFRONTATION WITH CORRUPTION GOVERNMENTS HAVE FALLEN IN THE MIDST OF MONEY SCANDALS IN ITALY JAPAN AND FRANCE B. C. C. I. REPRESENTS THE BIGGEST BANK ROBBERY IN HISTORY VICTIMIZING PAKISTANI IMMIGRANTS IN LONDON AND EQUALLY INNOCENT CENTRAL BANKS IN SOUTH AMERICA GOVERNMENTS ARE CONSUMED IN PITCHED WARS WITH GANGS OF DRUG LORDS THIS GLOBAL BACKGROUND SHOULD BE KEPT IN MIND IN APPOINTING OR ASSESSING A SPECIAL PROSECUTOR TO INVESTIGATE THE PRESIDENT OF THE UNITED STATES FOR OUR OWN PART AS WE'VE SAID BEFORE THE WHITEWATER ISSUE OUGHT TO BE THE SUBJECT OF A CONGRESSIONAL INVESTIGATION RATHER THAN A CRIMINAL INQUIRY A SPECIAL PROSECUTOR WILL HAVE IRRECONCILABLE MANDATES IF HE STICKS TOO STRICTLY TO THE LAW THE PUBLIC WILL REMAIN UNSATISFIED AND SKEPTICAL BUT IF HE EXPOSES EVERYTHING OF LEGITIMATE PUBLIC CONCERN HE WILL LOOK ABUSIVE BY NORMAL PROSECUTORIAL STANDARDS ONLY A PUBLIC AIRING THE PURVIEW OF CONGRESS CAN SETTLE THE ULTIMATE ISSUE WHICH IS WHETHER BILL CLINTON HAS BREACHED HIS CLAIM TO OUR TRUST BY THE SAME TOKEN IF SOME LONELY DIOGENES DOES UNDERTAKE THIS SEARCH THERE IS NO TELLING WHERE IT MAY LEAD EVEN IF BILL AND HILLARY CLINTON ARE EVENTUALLY SEEN AS SOMEHOW CULPABLE IN WHITEWATER OF COURSE IT WAS PENNY ANTE ON THE SCALE OF GLOBAL SCAMS STILL MR. CLINTON DOES HOLD THE MOST POWERFUL AND MOST COMPLICATED OFFICE ON THE GLOBE HE COMES FROM A STATE IT BECOMES INCREASINGLY EVIDENT NOT WELL ATTUNED TO CONTEMPORARY STANDARDS OF CONFLICTS OF INTEREST AND AT THE SAME TIME THE TENTACLES OF GLOBAL CORRUPTION SEEM TO REACH NEARLY EVERYWHERE WE MAY YET GET A DRAMATIC LESSON ON THIS LATTER POINT FROM THE REMARKABLE SETTLEMENT JUST REACHED IN THE B. C. C. I. CASE THE SHEIK OF ABU DHABI HAS FINALLY AGREED TO EXTRADITE THE FORMER B. C. C. I. CHIEF EXECUTIVE SWALEH NAQVI AND TO GIVE U. S. INVESTIGATORS ACCESS TO B. C. C. I. RECORDS SPIRITED OUT OF LONDON TO THE GULF EMIRATE THE SETTLEMENT REPRESENTS A SINGULAR ACHIEVEMENT FOR NEW YORK DISTRICT ATTORNEY ROBERT MORGENTHAU AND HARRY ALBRIGHT THE COURT APPOINTED TRUSTEE WHO TOOK OVER WASHINGTON'S FIRST AMERICAN BANK WHEN IT WAS SEVERED FROM B. C. C. I. OWNERSHIP THEY WERE ONCE TOLD BY EMINENCES OF THE ESTABLISHMENT THAT FURTHER ABU DHABI INVESTMENT WAS THE ONLY RECOURSE FOR FIRST AMERICAN AND AFTER THE ACQUITTAL OF CLARK CLIFFORD ACOLYTE ROBERT ALTMAN THAT THE WHOLE B. C. C. I. MATTER SHOULD BE DROPPED YET THE INVESTIGATIONS ARE ALREADY ROLLING FORWARD WITH THE NEW RECORDS WHICH CAN BE CROSS CHECKED AGAINST NEWLY UNCOVERED RECORDS IN LUXEMBOURG MR. ALTMAN'S ACQUITTAL LEAVES US WITHOUT AN ANSWER TO THE QUESTION OF HOW A CLAN OF CROOKS CAME TO OWN THE BIGGEST BANK IN WASHINGTON THE HOT BUTTON QUESTION IN THE SEARCH OF THE NEWLY AVAILABLE RECORDS WILL BE WHETHER AMERICAN REGULATORS OR POLITICIANS GOT PAYOFFS IT'S A LONG WAY FROM THE PERSIAN GULF TO THE OZARKS OF COURSE BUT THEN ON THEIR WAY TO BUYING FIRST AMERICAN THE B. C. C. I. SURROGATES FOUND THEIR WAY TO LITTLE ROCK WHERE STEPHENS INCORPORATED HANDLED THEIR BROKERAGE WORTHEN BANK CONTROLLED BY THE STEPHENS FAMILY ALSO WAS THE MOST IMPORTANT SOURCE OF LOANS FOR THE CLINTON CAMPAIGN AND ALSO HELD A LIEN ON JAMES MCDOUGAL'S INTEREST IN MADISON GUARANTY SAVINGS AND LOAN OH BY THE WAY THE B. C. C. I. CASE IS ALSO RELATED TO THE B. N. L. CASE A MAJOR EMBARRASSMENT FOR THE REPUBLICAN JUSTICE DEPARTMENT IN THAT CASE REMEMBER THE ATLANTA BRANCH OF ITALY'S BANCA NAZIONALE DEL LAVORO MADE LOANS BACKED BY THE U. S. DEPARTMENT OF AGRICULTURE THAT FUNDED IRAQ'S WAR MACHINE B. C. C. I. LENT A FRIENDLY HAND WITH OVERNIGHT DEPOSITS WHEN THE JUDGE WANTED TO KNOW WHY THE BRANCH MANAGER WAS PROSECUTED WITHOUT MUCH STUDY OF WHETHER ANYONE BACK IN ROME KNEW THE BUSH JUSTICE DEPARTMENT CHARTERED ITS OWN SPECIAL INVESTIGATOR JUDGE FREDERICK LACEY CONCLUDED THAT B. C. C. I. WAS INVOLVED BUT ONLY THROUGH THE LOCAL MANAGER BUT THIS HAS NOT STILLED SUSPICION ESPECIALLY SINCE IT SEEMS IMPLAUSIBLE THAT THE BANK HEADQUARTERS WOULDN'T FIND OUT WHAT WAS HAPPENING WITH MORE THAN TWO BILLION DOLLARS IN LOANS SO WHERE WILL FLORIDIAN JANET RENO NOW LOOK FOR HER FOUNTAIN OF TRUST THE ATTORNEY GENERAL MUST FIND SOMEONE PROMINENT ENOUGH TO COMMAND IMMEDIATE RESPECT AND CLARK CLIFFORD IS NO LONGER AVAILABLE SHE HAS TO LOOK FOR SOMEONE WHO HAS NO DEMOCRATIC PARTY CONFLICTS OF INTEREST BUT NO REPUBLICAN PARTY ONES EITHER SHE HAS TO LOOK FOR SOMEONE UNTAINTED BY THE LEAST CONNECTION WITH ANY OF THE SCANDALS AROUND THE GLOBE THE FULL EXTENT OF WHICH ARE STILL UNDER INVESTIGATION AND THE DUTY OF THIS DIOGENES WILL BE EITHER ONE TO IMPUGN THE PRESIDENT OR TWO TELL THE PEOPLE TAKE MY WORD AND STOP ASKING QUESTIONS SOMEHOW IT SEEMS TO US THAT AN OPEN CONGRESSIONAL PROBE FOR ALL ITS PREDICTABLE IMBECILITIES IS A MORE VIABLE ALTERNATIVE GEORGE BUSH HADN'T YET LEFT TOWN LAST WINTER WHEN A NEW ADVOCACY GROUP CALLED EMPOWER AMERICA SET UP SHOP TO HOUSE THE BEST AND BRIGHTEST OF THE CONSERVATIVE CAUSE ONE YEAR AND MILLIONS OF DOLLARS LATER THE QUESTION IS JUST WHO IS EMPOWERING WHOM WITH TWO LIKELY REPUBLICAN PRESIDENTIAL CONTENDERS JACK KEMP AND WILLIAM BENNETT ON ITS BOARD EMPOWER AMERICA'S FOUR MILLION DOLLAR PLUS BUDGET AND ITS SUPPLY SIDE FREE TRADE SCHOOL CHOICE IDEOLOGY MAKE IT A POLITICAL FORCE TO BE RECKONED WITH IN NINETEEN NINETY SIX BUT ITS FIRST TWELVE MONTHS ARE ALREADY A CAUTIONARY TALE OF MONEY AND EGO ON THE RIGHT BANKROLLED BY LEVERAGED BUYOUT ARTIST THEODORE FORSTMANN THE FLEDGLING ORGANIZATION BLENDS WALL STREET MONEY AND THE GRASS ROOTS MARKETING TECHNIQUES OF PEROT ERA POLITICS FROM HIGH RENT OFFICES JUST BLOCKS FROM THE WHITE HOUSE EMPOWER AMERICA'S FAX MACHINES SPIN OUT WEEKLY REPORTS FOR A NETWORK OF FIVE HUNDRED RADIO TALK SHOW HOSTS ACROSS THE COUNTRY MEANWHILE AN AGGRESSIVE MAIL CAMPAIGN HAS YIELDED A LIST OF MORE THAN ONE HUNDRED THOUSAND DONORS WORTH MILLIONS IN FUTURE CONTRIBUTIONS AND ABLE TO SUSTAIN STAFF AND BIG SALARIES FOR THE ORGANIZATION'S FOUNDERS AT CENTER STAGE IS VIN WEBER EMPOWER AMERICA'S VICE CHAIRMAN AND ONE OF THREE POLITICALLY MINDED BROTHERS WHO HAVE HAD AT LEAST PASSING ASSOCIATION WITH THE ADVOCACY GROUP ELECTED TO THE HOUSE FROM MINNESOTA IN THE REAGAN LANDSLIDE OF NINETEEN EIGHTY THE PERSONABLE MR. WEBER HELPED ENGINEER THE RISE OF NEWT GINGRICH NOW THE HOUSE REPUBLICAN WHIP WHO JOINED THE EMPOWER AMERICA BOARD IN A SHAKEUP LAST MONTH MR. WEBER RAN AGROUND IN THE HOUSE BANK SCANDAL OF NINETEEN NINETY TWO AND CHOSE NOT TO RUN FOR RE ELECTION IN PRIVATE LIFE HE HAS SET OUT TO MAKE MONEY WHILE KEEPING OPEN THE OPTION OF A COMEBACK CAMPAIGN FOR THE SENATE IN NINETEEN NINETY SIX MR. WEBER'S NEW WASHINGTON CONSULTING FIRM AND HIS ROLE AS A NATIONAL PUBLIC RADIO COMMENTATOR COMPLEMENT HIS PART TIME DUTIES AT EMPOWER AMERICA WHERE HE EARNS ONE HUNDRED FIFTY THOUSAND DOLLARS A YEAR AND STANDS TO REAP A SMALL FORTUNE FROM STOCK OPTIONS STEERED HIS WAY BY MR. FORSTMANN JUST WEEKS AFTER THE ADVOCACY GROUP WAS ANNOUNCED LAST JANUARY THE WALL STREET FINANCIER ADDED MR. WEBER TO THE BOARD OF A FORSTMANN CONTROLLED COMPANY SLATED TO GO PUBLIC MONTHS LATER SHARES IN THE COMPANY DEPARTMENT FIFTY SIX INCORPORATED A MAKER OF COLLECTIBLE PORCELAIN FIGURES CLOSED YESTERDAY AT TWENTY SEVEN DOLLARS AND SEVENTY FIVE CENTS ON THE BIG BOARD BUT ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS MR. WEBER HAS THE OPTION TO BUY AS MANY AS THIRTY THOUSAND SHARES AT THREE DOLLARS AND THIRTY CENTS APIECE A DIFFERENCE OF NEARLY SEVEN HUNDRED FIFTY THOUSAND DOLLARS QUOTE IT WAS VERY GENEROUS QUOTE MR. WEBER SAYS FOR THEIR PART MR. BENNETT THE FORMER EDUCATION SECRETARY AND ORSON SWINDLE A FORMER VIETNAM P. O. W. LURED FROM ROSS PEROT'S POLITICAL CAMP ARE BOTH PAID IN THE SAME RANGE AS MR. WEBER'S SALARY AND TOGETHER WITH THE OLDER HERITAGE FOUNDATION WHERE FORMER ATTORNEY GENERAL EDWIN MEESE WAS PAID MORE THAN TWO HUNDRED ELEVEN THOUSAND DOLLARS IN NINETEEN NINETY TWO EMPOWER AMERICA ILLUSTRATES HOW SUCH TAX EXEMPT NONPROFITS HAVE BECOME SAFE HARBORS FOR ELITE FIGURES IN THE CONSERVATIVE MOVEMENT FOR EXAMPLE MR. BENNETT'S ONE HUNDRED FIFTY THOUSAND DOLLAR SALARY FROM EMPOWER AMERICA IS SUPPLEMENTED BY HERITAGE WHICH PAID HIM EIGHTY NINE THOUSAND EIGHT HUNDRED DOLLARS IN NINETEEN NINETY TWO AS A DISTINGUISHED SCHOLAR NEITHER HE NOR MR. KEMP WILL DISCLOSE THEIR CURRENT SALARIES FROM HERITAGE BUT BOTH ARE PAID HANDSOMELY WHILE KEEPING STAFF AT EMPOWER AMERICA HERITAGE'S OWN FILINGS WITH THE INTERNAL REVENUE SERVICE SHOW THAT ITS PRESIDENT EDWIN FEULNER RECEIVED PAY AND BONUSES VALUED AT MORE THAN THREE HUNDRED SIXTY THOUSAND DOLLARS IN NINETEEN NINETY TWO SIGNIFICANTLY MORE THAN HIS COUNTERPARTS AT OTHER WASHINGTON NONPROFITS SUCH AS THE AMERICAN ENTERPRISE INSTITUTE AND BROOKINGS INSTITUTION IN EMPOWER AMERICA'S CASE IT HELPS TO PAY FOR THOSE GENEROUS SALARIES THROUGH DIRECT MAIL APPEALS RUN BY A VIRGINIA COMPANY CALLED RESPONSE DYNAMICS INCORPORATED OR RDI THE COMPANY HAS A BROAD CORPORATE CLIENTELE BUT IS BEST KNOWN IN THE G. O. P. FOR ITS INVOLVEMENT IN SEVERAL EFFORTS THAT HAVE BEEN CRITICIZED AS ANTITHETICAL TO THE VERY PARTY BUILDING TYPE IDEAS EMPOWER AMERICA IS SAID TO ADVOCATE IN NINETEEN EIGHTY EIGHT RDI MAILED FOR THE NATIONAL SECURITY POLITICAL ACTION COMMITTEE WHOSE INDEPENDENT EXPENDITURE AMERICANS FOR BUSH ORGANIZATION FINANCED THE FAMOUS WILLIE HORTON TELEVISION ADS IN NINETEEN NINETY TWO THE COMPANY WORKED FOR A SECOND INDEPENDENT COMMITTEE THAT TRADED ON THE BUSH NAME IN ITS FUND RAISING AND WAS CRITICIZED BY THE OFFICIAL BUSH CAMPAIGN AS SIPHONING OFF FUNDS AND BEING COUNTERPRODUCTIVE IN ADDITION THE COMPANY UNTIL LAST SUMMER WAS PART OF A BIZARRE CHALLENGE TO MASSACHUSETTS SENATOR EDWARD KENNEDY BY A NATIVE GEORGIAN AND OBSCURE REAGAN ERA AGRICULTURE DEPARTMENT OFFICIAL WHO RAISED MORE THAN ONE POINT ONE MILLION DOLLARS OVER THE EIGHTEEN MONTHS ENDING LAST JUNE MOST OF WHICH ONLY PAID POSTAL COSTS AND FEES CHARGED BY RDI AND ITS SUBSIDIARIES DAVID KUNKO ONE OF RDI'S FOUNDERS CASTS HIMSELF ONLY AS A BUSINESSMAN AND SAYS THAT WE PUT OUT DIRECT MAIL FOR ANYONE WHO WILL PAY IN THE CASE OF EMPOWER AMERICA'S CONTRACT MR. WEBER'S BROTHER JAMES A WASHINGTON CONSULTANT WHO HAS LONG HAD DEALINGS WITH RDI FOR BUSINESS AND POLITICAL CLIENTS WAS INSTRUMENTAL IN SEEING THAT THE VIRGINIA COMPANY WON THE WORK BUT ALL SIDES DENY THAT THE YOUNGER BROTHER BENEFITED FINANCIALLY FROM HIS ADVISORY ROLE RDI ESTIMATES THAT EMPOWER AMERICA COULD NET AT LEAST THREE MILLION DOLLARS A YEAR FROM THE DONOR LIST ALREADY COMPILED THIS MONEY WILL BE NEEDED SINCE MR. FORSTMANN WHO PUT UP ONE MILLION DOLLARS OF HIS OWN MONEY AND HELPED RAISE SEVERAL MILLION MORE FOR EMPOWER AMERICA LAST YEAR HAS DISTANCED HIMSELF A BIT FROM THE ENTERPRISE AND ITS CHIEF POLITICAL BENEFICIARY MR. KEMP MR. FORSTMANN WHO DECLINED TO BE INTERVIEWED FOR THIS ARTICLE LAST MONTH GAVE UP THE CHAIRMANSHIP OF EMPOWER AMERICA AND HE HAS SHOWN SIGNS OF DEVELOPING MORE OF A RELATIONSHIP WITH THAT OLD SUPPLY SIDE NEMESIS AND POTENTIAL KEMP RIVAL SENATE MINORITY LEADER ROBERT DOLE WITH THE ENCOURAGEMENT OF TEXAS DEAL MAKER AND FORMER DEMOCRATIC NATIONAL CHAIRMAN ROBERT STRAUSS THE TWO MEN DINED TOGETHER AT MR. FORSTMANN'S NEW YORK RESIDENCE IN JULY AND THE FINANCIER SEPARATELY CONTRIBUTED AN ESTIMATED FIFTY THOUSAND DOLLARS TO MR. DOLE'S OWN FLEDGLING NONPROFIT ORGANIZATION THE BETTER AMERICA FOUNDATION IN LATE SEPTEMBER MEANWHILE JUDE WANNISKI THE SUPPLY SIDE ADVOCATE AND FORMER WALL STREET JOURNAL EDITORIAL WRITER WHO IS A LONGTIME FORSTMANN ASSOCIATE HAS BEGUN TO PLAY AN ADVISORY ROLE TO SENATOR DOLE A RECENT MEMO FROM MR. WANNISKI TO SENATOR DOLE GUSHES WITH A SECOND HAND ACCOUNT THAT MARGARET THATCHER THINKS THE KANSAN HAS IT ALL AND AFTER YEARS OF LOYALTY TO MR. KEMP MR. WANNISKI SPEAKS LIKE A PROUD TUTOR OF MR. DOLE'S LATE CONVERSION AND OPENNESS TO THE IDEA OF ELIMINATING THE CAPITAL GAINS TAX A DOLE PRESIDENCY WOULD CUT THE CAPITAL GAINS TAX OR THE INDEX AT LEAST OR MAYBE ELIMINATE THEM ALTOGETHER THE SENATOR SAID ON N. B. C.'S MEET THE PRESS LAST WEEK MR. WANNISKI SAYS THAT EMPOWER AMERICA IS QUOTE SPINNING ITS WHEELS QUOTE BUT THE SHIFTING ALLIANCES ARE COLORED BY A FEUD BETWEEN HIM AND ANOTHER OLD REAGANITE FORMER OFFICE OF MANAGEMENT AND BUDGET ECONOMIST LAWRENCE KUDLOW WHO HAS BECOME A MAJOR PLAYER IN THE KEMP BENNETT WEBER ADVOCACY GROUP MR. WANNISKI DENIES THERE IS ANY CONNECTION BETWEEN HIS FEELINGS ABOUT EMPOWER AMERICA AND HIS FEELINGS ABOUT MR. KUDLOW BUT HE ACCUSES MR. KUDLOW NOW CHIEF ECONOMIST AT BEAR STEARNS AND COMPANY OF GOING BEHIND HIS BACK IN NINETEEN NINETY TWO WHEN BOTH WERE ADVISING THE RUSSIANS ON FINANCIAL MATTERS MR. KUDLOW SAYS IT WAS THE RUSSIANS WHO WERE UNHAPPY WITH MR. WANNISKI MEANWHILE MR. FORSTMANN'S DEPARTURE DOESN'T MEAN HE HAS SEVERED ALL TIES HE IS NOW FOUNDING CHAIRMAN AND THE GROUP IS MAILING COPIES OF A RECENT SPEECH BY HIM TO TWENTY FIVE THOUSAND SELECT OPINION MAKER MEMBERS BUT HIS MOVE HAS TRIGGERED A RESHUFFLE AT THE TOP OF THE ORGANIZATION WITH MALCOLM S. FORBES JUNIOR OF THE MAGAZINE FAMILY BECOMING CHAIRMAN MR. WEBER MOVING FROM PRESIDENT TO VICE CHAIRMAN AND BILL DAL COL A FORMER KEMP AIDE BECOMING PRESIDENT SITTING IN THE GROUP'S HEADQUARTERS MR. DAL COL CAN ONLY LAUGH ABOUT THE TURMOIL AROUND HIM AND TRY TO LOOK AHEAD SOUNDING MORE LIKE A MARKETING MANAGER THAN A CRUSADING POLITICAL ACTIVIST HE HAPPILY DESCRIBES HOW NEXT WEEK'S FIRST OF SEVEN ISSUES SCHOOLS PLANNED FOR CANDIDATES THIS YEAR IS SOLD OUT A MICROCHIP BASED HIGH TECH ACTUALITY SERVICE IS ALREADY FEEDING TAPED QUOTES TO RADIO STATIONS HE ADDS AND THERE WILL EVEN BE AN EIGHT HUNDRED NUMBER WHERE CANDIDATES CAN CALL IN AFTER LABOR DAY TO GET ADVICE ON EMPOWER AMERICA'S ISSUES SUCH AS SCHOOL CHOICE OR TAXES SIX P. M. TO MIDNIGHT EASTERN STANDARD TIME HE SAYS SMILING MEDICALCONTROL INCORPORATED SAID IT PURCHASED THE ASSETS OF GENESIS CLAIM REVIEW TERMS WERE NOT DISCLOSED THE COMPANY SAID GENESIS BASED IN DALLAS PROVIDES REVIEW AND NEGOTIATION OF LARGE INPATIENT MEDICAL CLAIMS MEDICALCONTROL SAID IT WILL COMBINE GENESIS WITH ITS OWN CLAIM REVIEW AND NEGOTIATION SERVICE VALUECHECK THE NEW SERVICE WILL BE CALLED GENESIS SLASH VALUECHECK THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FIRST FIDELITY BANCORP TWO HUNDRED MILLION DOLLARS OF SENIOR FLOATING RATE NOTES DUE AUGUST SECOND NINETEEN NINETY SIX PRICED AT PAR ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE FLOATS AND PAYS QUARTERLY AT TEN BASIS POINTS ABOVE THE THREE MONTH LONDON INTERBANK OFFERED RATE THE FIRST COUPON IS TO WILL BE SET MONDAY RATED SINGLE A TWO BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE A MINUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY RIGGS NATIONAL CORPORATION ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF SUBORDINATED DEBENTURES DUE FEBRUARY FIRST TWO THOUSAND SIX PRICED AT PAR TO YIELD EIGHT POINT FIVE OH PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE DEBENTURES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLE B. THREE BY MOODY'S AND SINGLE B. BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DILLON READ AND COMPANY STUDENT LOAN MARKETING ASSOCIATION SEVEN HUNDRED MILLION DOLLARS OF FLOATING RATE NOTES DUE FEBRUARY EIGHTH NINETEEN NINETY NINE PRICED AT PAR ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR ONE YEAR WILL PAY QUARTERLY AND FLOAT WEEKLY AT TWENTY ONE BASIS POINTS ABOVE THREE MONTH TREASURY BILLS THREE MONTH TREASURY BILLS ARE PRESENTLY YIELDING TWO POINT NINE SIX TWO PERCENT THE FIRST COUPON IS TO BE SET WEDNESDAY THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY U. S. AIR GROUP INCORPORATED ONE HUNDRED SEVENTY FIVE MILLION DOLLARS OF SENIOR UNSECURED NOTES DUE FEBRUARY FIRST TWO THOUSAND ONE PRICED AT PAR TO YIELD NINE POINT SIX TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE IS RATED B. A THREE BY MOODY'S AND SINGLE B. PLUS BY S. AND P. THE NOTES WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED CMG INFORMATION SERVICES INCORPORATED INITIAL PUBLIC OFFERING TUESDAY OF ONE POINT TWO MILLION COMMON SHARES PRICED AT EIGHT DOLLARS THROUGH AN UNDERWRITING GROUP MANAGED BY PIPER JAFFRAY INCORPORATED CORNING INCORPORATED EIGHT MILLION SHARES OF COMMON STOCK SOLD AT THIRTY DOLLARS APIECE IN A SINGLE BLOCK TRANSACTION TO GOLDMAN SACHS AND COMPANY O'SULLIVAN INDUSTRIES HOLDINGS INCORPORATED INITIAL OFFERING OF FOURTEEN POINT EIGHT MILLION COMMON SHARES PRICED AT TWENTY TWO DOLLARS APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY PERSONNEL MANAGEMENT INCORPORATED INITIAL PUBLIC OFFERING OF SEVEN HUNDRED SIXTEEN THOUSAND NINETY TWO SHARES OFFERED AT EIGHT DOLLARS AND FIFTY CENTS APIECE THROUGH CO MANAGERS DAVID A. NOYES AND COMPANY THE LEAD UNDERWRITER AND HOWE BARNES INVESTMENTS INCORPORATED PLAYTEX PRODUCTS INCORPORATED INITIAL OFFERING OF TWENTY MILLION COMMON SHARES PRICED AT THIRTEEN DOLLARS APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY SECURITY CONNECTICUT CORPORATION INITIAL OFFERING OF EIGHT POINT FIVE MILLION COMMON SHARES OF PRICED AT TWENTY TWO DOLLARS APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY U. S. X. U. S. STEEL GROUP FOUR POINT FIVE MILLION COMMON SHARES PRICED AT FORTY ONE DOLLARS APIECE THROUGH UNDERWRITER MORGAN STANLEY AND COMPANY MAINE STATE HOUSING AUTHORITY ONE HUNDRED TEN MILLION DOLLARS NINETEEN NINETY FOUR SERIES A MORTGAGE PURCHASE BONDS PRICED BY A GOLDMAN SACHS AND COMPANY GROUP YIELDS RANGE FROM FOUR POINT THREE FIVE PERCENT IN TWO THOUSAND TO FIVE POINT SEVEN FIVE PERCENT IN TWO THOUSAND THIRTY THREE MOODY'S IS EXPECTED TO RATE THE BONDS SINGLE A ONE AND S. AND P. IS EXPECTED TO ASSIGN A DOUBLE A MINUS RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION FIVE HUNDRED POINT FIVE MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS AND COMPANY THE OFFERING SERIES NINETEEN NINETY FOUR TO TWENTY NINE IS BACKED BY THE AGENCY'S THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS CAISSE NATIONALE DE CREDIT AGRICOLE FRANCE ONE HUNDRED MILLION DOLLARS OF ZERO COUPON EQUITY LINKED BONDS DUE FEBRUARY TENTH NINETEEN NINETY SEVEN AT ISSUE PRICE PAR VIA I. B. J. INTERNATIONAL LIMITED REOFFERED AT PAR REDEEMABLE AT PAR PLUS FIFTY PERCENT OF APPRECIATION OF HONG KONG STOCK INDEX FEES ONE POINT FIVE POINTS COMMONWEALTH BANK OF AUSTRALIA AUSTRALIA ONE HUNDRED MILLION DOLLARS OF RANGE FLOATING RATE EURONOTES DUE FEBRUARY TWENTY FOURTH NINETEEN NINETY FIVE AT ISSUE PRICE PAR VIA SALOMON BROTHERS INTERNATIONAL LIMITED PAYABLE QUARTERLY AT THREE MONTH DOLLAR LIBOR PLUS SIXTY BASIS POINTS INTEREST ACCRUES ON DAYS WHEN THREE MONTH LIBOR IS BETWEEN ZERO AND THREE POINT EIGHT SEVEN FIVE PERCENT IN FIRST SIX MONTHS AND IS BETWEEN ZERO AND FOUR POINT FOUR PERCENT IN SECOND SIX MONTHS GUARANTOR COMMONWEALTH OF AUSTRALIA FEES UNDISCLOSED CREDIT NATIONAL FRENCH AGENCY TWO HUNDRED FIFTY MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY NINETEEN NINETY SEVEN AT ISSUE AND REOFFER PRICE NINETY NINE POINT SEVEN SEVEN VIA CREDIT SUISSE FIRST BOSTON LIMITED PAYABLE QUARTERLY AT THREE MONTH DOLLAR LIBOR FLAT CALLABLE QUARTERLY FROM SECOND ANNIVERSARY AT PAR FEES ZERO POINT ONE FIVE POINT EKSPORTFINANS AS NORWEGIAN AGENCY ONE POINT FIVE BILLION SWEDISH KRONOR OF GLOBAL BONDS PRICED AS SIX POINT EIGHT SEVEN FIVE PERCENT DUE FEBRUARY NINTH TWO THOUSAND FOUR AT AN ISSUE AND FIXED REOFFER PRICE OF NINETY NINE POINT TWO NINE SIX VIA LEAD UNDERWRITER SALOMON BROTHERS INTERNATIONAL LIMITED AT THE FIXED REOFFER PRICE THE BONDS YIELD SIX POINT NINE EIGHT PERCENT A MARGIN OF TWENTY FOUR BASIS POINTS OVER THE COMPARABLE SWEDISH GOVERNMENT BOND SERIES ONE THOUSAND THIRTY THREE THE BORROWER'S SENIOR DEBT OUTSTANDING IS RATED DOUBLE A ONE BY MOODY'S AND TRIPLE A BY S. AND P. COMMISSIONS TOTAL ZERO POINT SIX TWO FIVE POINT WITH ZERO POINT THREE SEVEN FIVE POINT AS SELLING CONCESSION AND ZERO POINT TWO FIVE POINT FOR MANAGEMENT AND UNDERWRITING COMBINED THE LONDON LISTED BONDS ARE DENOMINATED IN TEN THOUSAND KRONOR INTEREST IS PAYABLE ANNUALLY ERSTE OESTERREICHISCHE SPAR CASSE BANK A. G. AUSTRIA ONE HUNDRED FIFTY MILLION MARKS OF FIVE POINT SEVEN FIVE PERCENT EUROBONDS DUE MARCH SEVENTH TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED ONE POINT THREE FIVE VIA COMMERZBANK A. G. BONDS YIELD FIVE POINT NINE SIX PERCENT AT NINETY EIGHT POINT EIGHT CO MANAGERS' BREAK EVEN PRICE A MARGIN OF THIRTY THREE BASIS POINTS OVER COMPARABLE GERMAN BUND FEES TWO POINT SEVEN FIVE POINTS LESS ZERO POINT TWO POINT FOR LEAD MANAGER HMC MORTGAGE NOTES ELEVEN P. L. C. SPECIAL PURPOSE VEHICLE ONE HUNDRED MILLION POUNDS OF FLOATING RATE EURONOTES DUE MARCH TWO THOUSAND TWENTY ONE AT ISSUE PRICE PAR VIA LEHMAN BROTHERS INTERNATIONAL REOFFERED AT NINETY NINE POINT NINE TWO FIVE PAYABLE QUARTERLY AT THREE MONTH POUND LIBOR PLUS ZERO POINT TWO FIVE BONDS SECURED ON FIRST RESIDENTIAL MORTGAGES ORIGINATED IN U. K. OF HOUSEHOLD MORTGAGE CORPORATION CALLABLE FROM MARCH NINETEEN NINETY SEVEN AT PAR FEES UNDISCLOSED INDUSTRIAL CREDIT AND INVESTMENT CORPORATION INDIA ONE HUNDRED SEVENTY FIVE MILLION DOLLARS OF CONVERTIBLE EUROBONDS DUE APRIL THIRD TWO THOUSAND AT ISSUE PRICE PAR VIA J. P. MORGAN SECURITIES LIMITED INDICATED COUPON TWO POINT SEVEN FIVE PERCENT TO THREE POINT TWO FIVE PERCENT CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM THIRTEEN PERCENT TO EIGHTEEN PERCENT TERMS ARE TO BE FIXED BY FEBRUARY FOURTH CALLABLE YEARS FOUR AND FIVE AT PAR IF SHARE PRICE IS AT LEAST ONE HUNDRED THIRTY PERCENT OF CONVERSION PRICE AFTER YEAR FIVE BONDS CALLABLE ANY TIME AT PAR FEES TWO POINT FIVE POINTS NATIONAL AND PROVINCIAL BUILDING SOCIETY UNITED KINGDOM ONE HUNDRED FIFTY MILLION POUNDS OF FLOATING RATE EURONOTES DUE FEBRUARY TENTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT NINE EIGHT VIA GOLDMAN SACHS INTERNATIONAL LIMITED PAYABLE QUARTERLY AT TEN BASIS POINTS OVER THREEMONTH LIBOR FEES ZERO POINT ONE FIVE POINT TANAYONG PUBLIC COMPANY THAILAND ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF CONVERTIBLE EUROBONDS DUE MARCH FIRST TWO THOUSAND FOUR AT ISSUE PRICE PAR VIA SWISS BANK CORPORATION INDICATED COUPON THREE POINT FIVE PERCENT TO FOUR PERCENT OVERALLOTMENT OPTION FIFTEEN PERCENT CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM TEN PERCENT TO FIFTEEN PERCENT FROM APRIL ELEVENTH TO JANUARY THIRTIETH TWO THOUSAND FOUR TERMS FIXED BY FEBRUARY SECOND CALLABLE AFTER FIVE YEARS IF SHARE PRICE AT LEAST ONE HUNDRED FORTY PERCENT OF CONVERSION PRICE PUT OPTION EXERCISABLE ON FIFTH ANNIVERSARY AT PRICE TO YIELD ONE HUNDRED TO TWO HUNDRED BASIS POINTS OVER COMPARABLE U. S. TREASURY FEES TWO POINT FIVE POINTS UNITED ENGINEERS MALAYSIA BERHAD MALAYSIA TWO HUNDRED MILLION DOLLARS OF CONVERTIBLE EUROBONDS DUE MARCH FIRST TWO THOUSAND FOUR AT ISSUE PRICE PAR VIA MORGAN STANLEY INTERNATIONAL AND INDOSUEZ CAPITAL INDICATED SEMIANNUAL COUPON TWO PERCENT TO TWO POINT FIVE PERCENT OVERALLOTMENT OPTION FIFTEEN PERCENT CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM FIFTEEN PERCENT TO EIGHTEEN PERCENT TERMS ARE TO BE FIXED NEXT WEEK AT END OF FIFTH YEAR PUT OPTION EXERCISABLE AT PRICE TO YIELD ABOUT FIVE POINT OH FOUR PERCENT THE PREVAILING YIELD ON FIVE YEAR U. S. TREASURY CALLABLE AFTER TWO YEARS AT ACCRETED VALUE IF SHARE PRICE EXCEEDS ONE HUNDRED THIRTY PERCENT OF CONVERSION PRICE FOR THIRTY CONSECUTIVE TRADING DAYS POWELL INDUSTRIES INCORPORATED SAID ONE OF ITS UNITS WILL RECEIVE THIRTEEN MILLION DOLLARS FROM THE STATE OF MASSACHUSETTS TO INSTALL COMPUTER CONTROLLED HIGHWAY SURVEILLANCE AND TRAFFIC CONTROL DEVICES POWELL SAID THAT FIGURE REPRESENTS THE UNIT'S SHARE OF A FIFTY TWO MILLION DOLLAR CONTRACT AWARDED TO A JOINT VENTURE OF PERINI CORPORATION BASED IN FRAMINGHAM MASSACHUSETTS AND THE POWELL UNIT TRANSDYN CONTROLS INCORPORATED FOR ITS FISCAL YEAR ENDED OCTOBER THIRTY FIRST POWELL EARNED TWO POINT NINE MILLION DOLLARS OR TWENTY EIGHT CENTS A SHARE AFTER AN ACCOUNTING ADJUSTMENT ON REVENUE OF ONE HUNDRED THIRTY EIGHT POINT ONE MILLION DOLLARS PEPSICO INCORPORATED SAID IT PLANS TO INVEST THREE HUNDRED FIFTY MILLION DOLLARS IN CHINA IN THE NEXT FIVE YEARS MATCHING EQUALLY BULLISH EFFORTS BY COCA COLA COMPANY IN THE LARGELY UNTAPPED MARKET PEPSI SAID IT RECEIVED GOVERNMENT APPROVAL TO BUILD TEN BOTTLING PLANTS IN CHINA WHICH WILL RESULT IN A THREE HUNDRED FIFTY MILLION DOLLAR INVESTMENT BY THE COMPANY AND A TWO HUNDRED FIFTY MILLION DOLLAR INVESTMENT BY ITS LOCAL JOINT VENTURE PARTNERS PEPSICO BASED IN PURCHASE N. Y. ALREADY OWNS EIGHT BOTTLING PLANTS IN CHINA AND HAS INVESTED ONE HUNDRED MILLION DOLLARS THERE QUOTE EARLY IN THE NEXT CENTURY WE EXPECT CHINA TO BE THE SECOND LARGEST MARKET AFTER THE U. S. QUOTE SAYS JAMES LAWRENCE PRESIDENT OF PEPSI COLA INTERNATIONAL'S ASIA MIDDLE EAST AND AFRICA DIVISION MICHAEL BRANCA ANALYST WITH NATWEST SECURITIES CORPORATION SAYS IN SUCH A RAPIDLY EXPANDING MARKET ALL INDUSTRY PARTICIPANTS WILL BE BENEFICIARIES OF GROWTH COCA COLA WHICH RUNS THIRTEEN BOTTLING PLANTS IN CHINA ANNOUNCED PLANS LAST YEAR TO BUILD AN ADDITIONAL TEN PLANTS FOR A TOTAL INVESTMENT IN CHINA BY THE COMPANY AND ITS JOINT VENTURE PARTNERS OF ABOUT FIVE HUNDRED MILLION DOLLARS BY NINETEEN NINETY SIX DALLAS BASED DOCTOR PEPPER SLASH SEVEN UP COMPANIES HAS TEAMED UP WITH A BOTTLER IN SOUTHERN CHINA TO BUILD A CONCENTRATE PLANT FOR DOCTOR PEPPER AND OTHER FLAVORED SODAS AND IT IS NOW CONSIDERING PLANS TO EXPAND BOTTLING OPERATIONS IN THE REGION THIS YEAR COCA COLA BASED IN ATLANTA HOLDS ABOUT TWELVE PERCENT OF CHINA'S SOFT DRINK MARKET COMPARED WITH FIVE PERCENT FOR PEPSI ACCORDING TO BEVERAGE DIGEST A TRADE PUBLICATION THE COMPANIES ARE COMPETING AGAINST ABOUT THREE THOUSAND LOCAL BRANDS OF WHICH ORANGE DRINKS ARE THE MOST POPULAR THE U. S. BRANDS SELL FOR ABOUT TEN TO FIFTEEN CENTS FOR AN EIGHT OUNCE RETURNABLE GLASS BOTTLE COMPARED WITH FIVE OR TEN CENTS FOR LOCAL BRANDS ACCORDING TO PEPSI'S MR. LAWRENCE NOW WITH DISTRIBUTION OF U. S. BRANDS LIMITED PRIMARILY TO COASTAL CITIES FIFTY CENT CANS OF PEPSI ARE BEING RESOLD BY MIDDLEMEN IN THE COUNTRY'S INTERIOR FOR SEVENTY FIVE CENTS OR MORE MR. LAWRENCE SAYS AS PART OF ITS INVESTMENT PEPSI PLANS TO BLANKET COUNTRYSIDE MARKET STALLS WITH ICE CHESTS AND COOLERS FOR ITS PRODUCTS AS WELL AS SIGNS THE CHINESE SOFT DRINK MARKET ACCOUNTED FOR JUST SEVEN HUNDRED MILLION CASES LAST YEAR OR ABOUT THIRTEEN SERVINGS A PERSON COMPARED WITH ABOUT EIGHT BILLION CASES OR NEARLY EIGHT HUNDRED SERVINGS A PERSON IN THE U. S. AFTER LAST WEEK'S EARTHQUAKE MANY SMALL BUSINESSES HERE ARE GRAPPLING WITH THE CLASSIC POST DISASTER TEMPTATION TO GOUGE SOME ARE SUCCUMBING EAGERLY AND MANY CONSUMERS ARE EXPECTING THE WORST BUT OTHER BUSINESS OWNERS ARE TURNING THE DISASTER TO A DIFFERENT PURPOSE THAT OF BUILDING THEIR REPUTATIONS EVEN BEYOND THE MORAL CONSIDERATIONS THEY THINK IT WILL PAY IN THE LONG RUN TAKE DAVE PANNU OWNER OF A SEVEN EMPLOYEE STRUCTURAL ENGINEERING FIRM HE WAS APPROACHED AFTER THE QUAKE BY A NERVOUS TAJDIN PUNCH WHO SAYS HE WAS PREPARED TO SPEND THOUSANDS OF DOLLARS TO REINFORCE THE FOUNDATION OF HIS HOUSE BUT MR. PANNU TOLD MR. PUNCH THE HOUSE DIDN'T NEED REINFORCING WORK DESPITE A CRUMBLED CHIMNEY AND SOME SURFACE CRACKS IN THE FOUNDATION QUOTE I ONLY RECOMMEND WHAT IS NECESSARY QUOTE SAYS MR. PANNU MY PHILOSOPHY IS YOU'LL NEVER FIND A THIEF GETTING RICH WHILE MR. PANNU LOST SOME BUSINESS HE WON A FAN WHEN TALK AT MR. PUNCH'S CONVENIENCE STORE TURNS TO EARTHQUAKE PRICE GOUGERS MR. PUNCH OFFERS A RINGING ENDORSEMENT OF THE ENGINEER HE WAS EXTREMELY ABOVEBOARD HE TOTALLY IMPRESSED ME SAYS MR. PUNCH WHO ADDS THAT OTHER ENGINEERS WERE ASKING AS MUCH AS FIVE HUNDRED DOLLARS FOR THE INSPECTION THAT MR. PANNU MADE FOR TWO HUNDRED FIFTY DOLLARS THE OBVIOUS TEMPTATION FOR ENTREPRENEURS WHOSE PRODUCTS OR SERVICES ARE SUDDENLY IN BIG DEMAND AFTER A DISASTER IS TO CHARGE WHAT THE MARKET WILL BEAR THE SECOND OLDEST BUSINESS IS MINING MISERY SAYS JON P. GOODMAN DIRECTOR OF THE ENTREPRENEUR PROGRAM AT THE UNIVERSITY OF SOUTHERN CALIFORNIA SINCE TIME IMMEMORIAL TRAGEDY HAS BEEN A TREMENDOUS ECONOMIC OPPORTUNITY ALREADY FOR EXAMPLE EIGHT SEVEN ELEVEN FRANCHISEES IN THE LOS ANGELES AREA HAVE HAD THEIR FRANCHISES TERMINATED BY SOUTHLAND CORPORATION FOR QUAKE RELATED GOUGING THE DALLAS BASED FRANCHISER SAYS BUT MS. GOODMAN AND OTHERS ARGUE THAT ENTREPRENEURS WOULD DO WELL TO RESIST THE URGE TO MAKE A QUICK BUCK AND CONCENTRATE INSTEAD ON WINNING LONG TERM CUSTOMERS QUOTE ONE OF THE HARDEST THINGS IS TO DEVELOP REPEAT BUSINESS QUOTE SAYS MS. GOODMAN THE MARK OF A SOLID BUSINESS IS A LOYAL CLIENTELE THAT'S WHAT ALLOWS YOU TO PROJECT YOUR REVENUES AND YOUR EXPENSES OTHERWISE YOU'RE FLYING BLIND DENNIS BLACK WHO OWNS A NOVELTY SHOP SAYS THAT ON THE DAY OF THE QUAKE HIS SON WAS CHARGED SIXTEEN DOLLARS FOR TWO SMALL BOTTLES OF WATER WHILE MR. BLACK SAYS HE WOULD LIKE TO HANG THE OWNER OF THE CONVENIENCE STORE WHERE HIS SON BOUGHT THE WATER HE WILL SETTLE FOR TRYING TO PERSUADE NEIGHBORS NOT TO SHOP THERE SOME PROFITEERS MAY LOSE MORE THAN CUSTOMERS VIOLATORS OF A PRICE GOUGING ORDINANCE THAT LOS ANGELES ENACTED FOLLOWING THE NINETEEN NINETY TWO RIOTS FACE A ONE THOUSAND DOLLAR FINE AND SIX MONTHS IN JAIL FOR EACH VIOLATION A TOLL FREE PHONE LINE HAS RECEIVED MORE THAN FIVE HUNDRED COMPLAINTS SINCE THE QUAKE SAYS A SPOKESWOMAN FOR THE CITY OF COURSE IT IS POSSIBLE TO CASH IN ON A DISASTER WITHOUT RIPPING OFF THE PUBLIC TWO HOURS AFTER THE CALIFORNIA QUAKE ROGER C. STULL PRESIDENT OF PENHALL INTERNATIONAL INCORPORATED AN ANAHEIM CONSTRUCTION COMPANY BEGAN DEVELOPING A PLAN TO NOTIFY THE STATE OF HIS FIRM'S AVAILABILITY AND TO PROVIDE COST ESTIMATES BUT THAT WAS JUST GOOD BUSINESS HE SAYS WE WANTED TO BE ABLE TO PERFORM AS FAST AND AS EFFICIENTLY AND AS SAFELY AS WE COULD HE ADDS MR. STULL PREDICTS QUAKE REPAIR WORK WILL PRODUCE TEN MILLION DOLLARS TO TWENTY MILLION DOLLARS IN NEW BUSINESS FOR HIS FIRM OVER THE NEXT YEAR OR TWO CURRENTLY THE COMPANY HAS ABOUT SEVENTY FOUR MILLION DOLLARS IN ANNUAL REVENUE A TRANSPORTATION RELATED BUSINESS THAT WILL PROSPER IN THE AFTERMATH OF THE QUAKE IS THOMAS BROTHERS MAPS WHICH MAKES THE BOOK SIZE STREET GUIDES THAT MANY HERE FIND INDISPENSIBLE TELEPHONE INQUIRIES WERE UP FIFTEEN PERCENT TO THREE HUNDRED FORTY FIVE CALLS A DAY IN THE WEEK AFTER THE QUAKE PEOPLE IN LOS ANGELES HAVE RELIED ON FREEWAYS FOR YEARS SAYS TED HOLT THE COMPANY'S VICE PRESIDENT OF SALES AND MARKETING QUOTE BUT NOW THEY'VE GOT TO RELY ON SURFACE STREETS THAT THEY'RE NOT FAMILIAR WITH QUOTE AS SOUTHERN CALIFORNIANS RECALCULATED THEIR COMMUTES BECAUSE OF COLLAPSED FREEWAYS AND BLOCKED STREETS WHOLESALE SALES OF THOMAS GUIDES IN THE LOS ANGELES AND VENTURA COUNTY REGIONS IMMEDIATELY JUMPED TEN PERCENT BUT THOMAS BROTHERS SAYS IT HAS NO PLANS TO INCREASE PRICES PACIFIC GLASSWORKS INCORPORATED WHICH DOES GLASS REPAIR AND BOARD UP WORK SAW ITS VOLUME OF CUSTOMER CALLS JUMP SIXFOLD AFTER THE EARTHQUAKE SAYS GALE KLAVER THE FIRM'S CO OWNER SOME WOULD BE NEW CUSTOMERS OFFERED TO PAY AS MUCH AS DOUBLE THE FIRM'S NORMAL PRICES FOR QUICK SERVICE SHE SAYS SHE TURNED THEM ALL DOWN AND TOLD THEM HER COMPANY WOULD GET TO THE WORK AS SOON AS IT COULD IT'S NOT THE TIME TO INCREASE THE RATES MRS. KLAVER SAYS IT'S TIME TO RECUPERATE AND HELP PEOPLE GET BACK ON THEIR FEET JOE GOODMAN OWNER OF MARK THE CARPETBAGGER SAYS HIS CARPET CLEANING FIRM RECEIVED MORE THAN SIXTY FIVE CALLS FROM POTENTIAL NEW CUSTOMERS IMMEDIATELY AFTER THE QUAKE ABOUT TWICE THE USUAL NUMBER BUT HE TURNED AWAY PRACTICALLY ALL OF THEM BECAUSE HE IS BOOKED THROUGH MID FEBRUARY MR. GOODMAN SAYS HE NEVER EVEN CONSIDERED PUTTING OFF HIS REGULAR CUSTOMERS IN FAVOR OF HIGHER PAYING JOBS FROM QUAKE VICTIMS A PRICE INCREASE ISN'T NECESSARILY PRICE GOUGING OF COURSE CHRIS DAVIS MARKETING DIRECTOR OF CHIMNEY CHARM INCORPORATED SAYS THE CHIMNEY SERVICING FIRM HAS BOOSTED RATES BY TEN PERCENT BUT FOR A REASON HE SAYS THE EXTRA REVENUE IS NECESSARY TO CUSHION THE BUSINESS AGAINST LIABILITY FROM INJURY TO HIS WORKERS AND DAMAGE TO BUILDINGS THAT ADJOIN CHIMNEY REPAIR SITES WE'VE HAD A LOT OF DISCUSSION ON PRICES DAVIS SAYS BUT THERE'S NO BLUEBOOK FOR THIS BUSINESS SO WE'RE TRYING TO REMAIN ETHICAL AND DELIVER A DECENT PRODUCT AT AN ETHICAL PRICE FLAMBOYANT ITALIAN MEDIA TYCOON SILVIO BERLUSCONI ANNOUNCED HE WILL STEP DOWN AS CHAIRMAN OF HIS TELEVISION AND RETAIL EMPIRE GRUPPO FININVEST TO HEAD UP A NEW CENTER RIGHT POLITICAL PARTY THE DECISION FURTHER ENLIVENS THE ALREADY FRANTIC CONTEST AMONG A FRACTURED GROUP OF CENTER AND RIGHT WING PARTIES TO FORM A COHESIVE ALLIANCE BEFORE ITALY'S MARCH TWENTY SEVENTH TO TWENTY EIGHT NATIONAL ELECTIONS SAYING HE DIDN'T WANT TO LIVE IN A COUNTRY QUOTE GOVERNED BY IMMATURE FORCES AND MEN CLOSELY TIED TO A POLITICALLY AND ECONOMICALLY BANKRUPT PAST QUOTE THE FIFTY SEVEN YEAR OLD MR. BERLUSCONI CALLED FOR CREATION OF QUOTE A NEW ITALIAN MIRACLE QUOTE TOGETHER WITH OTHER DEMOCRATIC FORCES IN ORDER TO COUNTER THE FORMER COMMUNIST LEFT WING ALLIANCE THE LEFT ALLIANCE EMERGED VICTORIOUS IN LAST NOVEMBER'S MUNICIPAL ELECTIONS MR. BERLUSCONI WHO ALSO OWNS THE POPULAR A. C. MILAN SOCCER TEAM GAVE NO SPECIFIC DETAILS OF THE PLATFORM FOR HIS NEW PARTY WHICH IS CALLED FORZA ITALIA A COMMON SOCCER CHEER MEANING GO ITALY OUR LEFTISTS PRETEND TO HAVE CHANGED THEY SAY THEY HAVE BECOME LIBERAL DEMOCRATS BUT IT'S NOT TRUE MR. BERLUSCONI SAID IN HIS PRERECORDED MESSAGE BROADCAST ON ONE OF HIS CHANNELS AND LATER THE STATE R. A. I. T. V. THEIR MEN ARE STILL THE SAME THEIR MENTALITY THEIR CULTURE THEIR PROFOUND CONVICTIONS THEIR BEHAVIOR ARE ALL THE SAME OPPOSED TO THE FREE MARKET PRIVATE INITIATIVE PROFIT AND THE INDIVIDUAL HE SAID OVER THE PAST SEVERAL MONTHS MR. BERLUSCONI HAS URGED PARTY LEADERS ON THE CENTER AND RIGHT TO UNITE AGAINST THE LEFT IN THE MEANTIME HE SET UP MORE THAN SIX HUNDRED FORZA ITALIA CLUBS THROUGHOUT THE COUNTRY PREPARING FOR A POSSIBLE BID UNDER NEW LAWS THE LEGISLATURE WILL BE ELECTED THROUGH A RELATIVE MAJORITY SYSTEM IN MARCH INSTEAD OF THE OLD SYSTEM OF PROPORTIONAL REPRESENTATION AS A RESULT THE POLITICAL ARENA HAS BECOME A FREE FOR ALL WITH OLD AND NEW FRAGMENTED PARTIES SCRAMBLING TO BUILD LEFT AND RIGHT BLOCS AHEAD OF ELECTIONS MR. BERLUSCONI'S POLITICAL ASPIRATIONS HAVE INCITED CRITICISM FROM BOTH THE LEFT AND CENTER WHICH WARN ABOUT POSSIBLE CONFLICTS OF INTEREST BY A POLITICIAN WHO OWNS NEARLY HALF THE TELEVISION BROADCASTING OUTLETS IN THE COUNTRY SEVERAL LEADING JOURNALISTS HAVE DEFECTED FROM HIS T. V. AND PUBLISHING HOLDINGS OVER THE PAST MONTH IN PROTEST OF HIS POLITICAL INVOLVEMENT A FININVEST SPOKESWOMAN SAID THE COMPANY WILL HOLD A BOARD MEETING SHORTLY TO ELECT A SUCCESSOR TO MR. BERLUSCONI WHO FOUNDED THE COMPANY IN NINETEEN SEVENTY EIGHT TRAVIS J. BOWDEN FIFTY FIVE YEARS OLD WAS ELECTED PRESIDENT OF GULF POWER COMPANY A PENSACOLA FLORIDA BASED SUBSIDIARY OF THIS UTILITY HOLDING COMPANY MR. BOWDEN EXECUTIVE VICE PRESIDENT OF ALABAMA POWER COMPANY ANOTHER SOUTHERN COMPANY SUBSIDIARY SUCCEEDS DOUGLAS L. MCCRARY SIXTY FOUR MR. MCCRARY WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GULF POWER UNTIL MAY FIRST WHEN HE RETIRES AND MR. BOWDEN ASSUMES THE ADDITIONAL POSITIONS WHEN THE SECURITIES AND EXCHANGE COMMISSION UNVEILS ITS MUCH BALLYHOOED STUDY ON U. S. SECURITIES MARKETS TODAY ARTHUR LEVITT ITS CHAIRMAN WON'T BE AROUND THAT SPEAKS VOLUMES MORE TO WALL STREET EXECUTIVES THAN THE MARKET TWO THOUSAND STUDY ITSELF THEY SEE THE CHAIRMAN DISTANCING HIMSELF FROM A REPORT THAT FALLS FAR SHORT OF OFFERING THE WHOLESALE REGULATORY CHANGES THE EXCHANGES ARE DESPERATELY SEEKING INDEED SOME OF THE MEASURES ARE DOWNRIGHT LOATHSOME TO THE EXCHANGES FOR INSTANCE THE REPORT SUGGESTS THE AGENCY LOOSEN THE RULES GOVERNING THE ABILITY OF COMPANIES TO MOVE FROM THE NEW YORK STOCK EXCHANGE AND THE AMERICAN STOCK EXCHANGE TO OTHER MARKETS CURRENTLY A NEW YORK STOCK EXCHANGE LISTED COMPANY THAT WANTS TO CHANGE VENUE WOULD HAVE TO GET TWO THIRDS OF ITS SHAREHOLDERS TO AGREE TO THE MOVE THE REPORT SUGGESTS THAT A COMPANY'S BOARD OF DIRECTORS BE ALLOWED TO MAKE THAT DECISION SUBJECT TO REVIEW BY THE COMPANY'S AUDIT COMMITTEE IT ALSO SUGGESTS THAT MEMBERS OF THE NEW YORK STOCK EXCHANGE BE FREE TO TRADE LISTED STOCKS AWAY FROM THE BIG BOARD AFTER HOURS UNLESS THE EXCHANGES OFFER AN AFTERHOURS SYSTEM CURRENTLY MEMBERS MUST TRADE THESE STOCKS IN FOREIGN MARKETS THE CHANGE WOULD IN EFFECT CIRCUMVENT RULE THREE HUNDRED NINETY WHICH GIVES ONLY SPECIALIST FIRMS THE RIGHT TO MAKE MARKETS IN STOCKS OVERALL THE MARKET TWO THOUSAND STUDY PROPOSES THAT THE S. E. C. CONTINUE A FLEXIBLE APPROACH TOWARD OFF EXCHANGE TRADING SYSTEMS BUT MAKE THEM SUBJECT TO DETAILED REPORTING AND RECORD KEEPING REQUIREMENTS THE NEW YORK STOCK EXCHANGE AND OTHERS HAD WANTED THE S. E. C. TO GO MUCH FURTHER BY IMPOSING ON THE OFF EXCHANGE TRADING SYSTEMS THE FULL PANOPLY OF REGULATIONS GOVERNING THE EXCHANGES QUOTE THEY ARE OBVIOUSLY STILL TRYING TO GET THE EXCHANGES TO COMPETE IN A TENNIS MATCH DRESSED FOR FOOTBALL QUOTE COMPLAINS CAROLYN B. AUSTIN PRESIDENT OF THE MIDWEST STOCK EXCHANGE SPECIALIST FIRM DEMPSEY AND COMPANY YOU STILL HAVE ALL THESE REGULATORY TRAPPINGS AROUND THE EXCHANGES AND YET THE OVER THE COUNTER MARKETS ARE FAIRLY LIGHT FOOTED WHAT THE S. E. C. STAFF IS SAYING IS THAT OVERALL THE MARKETS WORK PRETTY WELL AND SO THERE IS NO NEED FOR RADICAL CHANGE SAYS ONE PERSON WHO WAS BRIEFED ON THE REPORT YESTERDAY HOWEVER THEY RECOGNIZE THE NEED FOR SOME CHANGES TO ACCOMMODATE TECHNOLOGICAL DEVELOPMENTS AND CHANGES IN MARKET PRACTICES ADDS MS. AUSTIN MY SENSE IS MARKET TWO THOUSAND MAY BE A FIRST STEP BUT THEY'LL NEED A MARKET TWO THOUSAND ONE TO FIX ANYTHING AN S. E. C. SPOKESWOMAN DENIED THAT MR. LEVITT'S CONSPICUOUS ABSENCE FROM TODAY'S PLANNED PRESENTATION IS ANY ATTEMPT TO DISTANCE HIMSELF FROM THE REPORT MR. LEVITT HAD A PREVIOUS ENGAGEMENT WHICH WE WANTED TO KEEP AND WE ALL DECIDED IT WAS IN THE BEST INTEREST OF ALL PARTIES TO RELEASE IT IN LATE JANUARY SAID THE SPOKESWOMAN NO ONE AT THE S. E. C. WOULD COMMENT ON THE REPORT BEFORE ITS RELEASE COMMISSIONED TWO YEARS AGO BY FORMER S. E. C. CHAIRMAN RICHARD BREEDEN MARKET TWO THOUSAND IS THE S. E. C.'S FIRST BROAD REACHING SURVEY OF THE EQUITY MARKETS IN MORE THAN TWENTY YEARS FROM THE START THE STOCK EXCHANGES SAW THE STUDY AS A WAY TO REMEDY SOME OF THE COMPETITIVE DISADVANTAGES THEY HAVE SUFFERED IN RECENT YEARS AS SCANTILY REGULATED OFF EXCHANGE TRADING SYSTEMS HAVE PROLIFERATED THOSE OFF EXCHANGE SYSTEMS HAVE SUCKED AWAY MILLIONS OF DOLLARS OF STOCK ORDERS FROM THE WELL ESTABLISHED HIGHLY REGULATED EXCHANGE FLOORS EVEN THOSE PROPOSALS THE EXCHANGES FAVOR AREN'T AS STRICT AS THEY WOULD LIKE THE REPORT REITERATES THE NEED FOR GREATER DISCLOSURE OF PAYMENT FOR ORDER FLOW A PRACTICE IN WHICH BROKERS RECEIVE INCENTIVES FROM MARKET MAKERS FOR BUY AND SELL ORDERS FOR STOCKS THE PRACTICE IS ALREADY THE SUBJECT OF A RULE PROPOSED BY THE S. E. C. THE SAME PROPOSAL DEALS WITH SO CALLED QUOTE SOFT DOLLAR QUOTE PAYMENTS WHICH INCLUDE DISCOUNTS ON RESEARCH REPORTS AMONG OTHER THINGS THE EXCHANGES WANTED PAYMENT FOR ORDER FLOW BANNED ANOTHER RECOMMENDATION THAT MAY BE MOOT IS ONE THAT WOULD REQUIRE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS TO PUBLICLY DISPLAY ORDERS ENTERED ON SELECTNET THE COMPUTERIZED TRADING SYSTEM THAT ALLOWS N. A. S. D. MEMBERS TO NEGOTIATE AND EXECUTE TRANSACTIONS FOR NASDAQ LISTED STOCKS EARLIER THIS WEEK THE N. A. S. D.'S BOARD OF GOVERNORS VOTED TO GIVE NONMEMBERS ACCESS TO SELECTNET THROUGH MEMBER FIRMS THE N. A. S. D. ACTION WILL HAVE TO BE APPROVED BY THE S. E. C. AFTER STAFF REVIEW THEN THERE'S THE SUGGESTION THAT THE CURRENT SYSTEM OF PRICING STOCKS IN INCREMENTS OF ONE EIGHTH OF A DOLLAR OR TWELVE POINT FIVE CENTS BE SCRAPPED IN FAVOR OF DECIMALIZATION THE REPORT RECOMMENDS THE ADOPTION OF A ONE SIXTEENTH OF A DOLLAR INCREMENT AS A TRANSITIONAL STEP LEADING TO DECIMAL PRICING THAT IS INCREMENTS OF TEN CENTS AS WITH SIMILAR SWEEPING REPORTS MARKET TWO THOUSAND WILL REFLECT THE STAFF'S FINDINGS AND RECOMMENDATIONS RATHER THAN THE COMMISSION'S THE COMMISSION DOESN'T ENDORSE STAFF REPORTS BUT IT AUTHORIZES THEIR PUBLICATION A SPOKESMAN SAID THE COMMISSIONERS TRY AS HARD AS POSSIBLE TO MAKE IT CLEAR THAT IT'S THE DIVISION THAT'S REPORTING IN THIS CASE THE MARKET REGULATION DIVISION HEADED BY BRANDON BECKER IS RELEASING THE REPORT WITHOUT FANFARE UNLIKE THE REPORT ON MUTUAL FUNDS RELEASED IN MAY NINETEEN NINETY TWO AT A NEWS CONFERENCE LED BY THEN CHAIRMAN MR. BREEDEN STAFF RECOMMENDATIONS IN THESE REPORTS TYPICALLY CONTAIN A MIX OF SUGGESTIONS SOME OF WHICH REQUIRE RULE MAKING BY THE COMMISSION AND SOME OF WHICH REQUIRE LEGISLATION OTHER SUGGESTIONS ARE UP TO THE EXCHANGES AND NASDAQ TO FOLLOW IF COMMISSION RULE MAKING IS IN ORDER THE PROCESS IS THE SAME AS IF NO REPORT HAD BEEN ISSUED THE COMMISSION WILL VOTE TO PROPOSE A RULE COLLECT COMMENTS AND THEN VOTE ON A FINAL RULE THE PROCESS CAN TAKE MONTHS CAROLINE B. AUSTIN IS PRESIDENT OF DEMPSEY AND COMPANY A SPECIALIST FIRM ON THE CHICAGO STOCK EXCHANGE AN ARTICLE YESTERDAY INCORRECTLY REFERRED TO THE CHICAGO STOCK EXCHANGE BY ITS FORMER NAME THE MIDWEST STOCK EXCHANGE ARIZONA ECONOMISTS STILL SMARTING FROM MEMORIES OF THE STATE'S UNCHARACTERISTIC BUST IN THE LATE NINETEEN EIGHTIES ARE BEGINNING TO TALK OF A NEW IF LIMITED ECONOMIC BOOM QUOTE IF IT'S NOT A BOOM IT'S A MINIBOOM QUOTE VENTURES MARSHALL J. VEST OF THE UNIVERSITY OF ARIZONA IN TUCSON AFTER SEVERAL SLOWER GROWING YEARS EMPLOYMENT WILL RISE SHARPLY THIS YEAR AND PUT ARIZONA RIGHT UP THERE WITH THE FASTEST GROWING STATES IN THE NATION HE SAYS AND THIS YEAR WE WILL HAVE FOR THE FIRST TIME IN A DECADE BOTH THE CONSTRUCTION INDUSTRY AND THE MANUFACTURING INDUSTRY INCREASING AT THE SAME TIME WHILE AGREEING THAT THE HOUSING SECTOR IS PRETTY AMAZING TRACY L. CLARK OF ARIZONA STATE UNIVERSITY IN THE PHOENIX SUBURB OF TEMPE ADDS CAUTIOUSLY IF I WAS GOING TO USE THE TERM BOOM I'D PROBABLY RESTRICT MYSELF TO THE CONSTRUCTION INDUSTRY AND THE SINGLE FAMILY HOUSING MARKETS AFTER A STRING OF YEAR TO YEAR DECLINES ARIZONA'S RESIDENTIAL BUILDING SURGED THIRTY SIX PERCENT IN NINETEEN NINETY TWO AND NINETEEN PERCENT LAST YEAR TUCSON WHOSE POPULATION OF SEVEN HUNDRED TWENTY THOUSAND RANKS SECOND TO METROPOLITAN PHOENIX'S TWO POINT THREE MILLION IS GROWING ESPECIALLY FAST THE MISSILE SYSTEMS DIVISION OF GENERAL MOTORS CORPORATION'S HUGHES AIRCRAFT COMPANY IS HEATING UP THE TUCSON HOUSING MARKET BY RELOCATING THERE FOUR THOUSAND EMPLOYEES MOSTLY WHITE COLLAR FROM SOUTHERN CALIFORNIA PIMA COUNTY SUPERVISOR ED MOORE SAYS THE INFLUX OF HIGHER INCOME WORKERS HAS LED TO AN EXTREME SHORTAGE OF THREE HUNDRED THOUSAND DOLLAR PLUS HOUSES HE ESTIMATES THAT NOT MORE THAN TWENTY ARE AVAILABLE RIGHT NOW ANOTHER ELEMENT IN THE CONSTRUCTION BOOMLET IRONICALLY IS A LEGACY FROM THE SPECULATIVE BUILDING OF THE MID NINETEEN EIGHTIES DEVELOPERS WHO MIGHT HAVE HAD TROUBLE JUSTIFYING NEW HOUSING PROJECTS HAVE FOUND IT CHEAPER TO BUILD ON THE SITES ABANDONED A FEW YEARS AGO IN MANY PLACES PIPES WIRING AND OTHER INFRASTRUCTURE WERE IN PLACE WHEN THE PROJECTS WENT BUST THE UNEMPLOYMENT RATE WHICH AT SEVEN POINT FIVE PERCENT IN NINETEEN NINETY TWO WAS A SHADE ABOVE THE NATION'S FELL TO AN AVERAGE OF SIX POINT THREE PERCENT LAST YEAR AND IS HEADED TOWARD FIVE POINT SIX PERCENT THIS YEAR FIRST INTERSTATE BANK SAYS IT EXPECTS THE U. S. RATE TO STAY AROUND SIX POINT EIGHT PERCENT OF THE LABOR FORCE OTHER SIGNS OF STRENGTH IN ARIZONA INCLUDE A DROP IN OFFICE VACANCY RATES AND GAINS IN POPULATION PERSONAL INCOME AND RETAIL SALES THAT SLIGHTLY OUTPACE THE NATION'S MANY ECONOMISTS APPLAUD THESE RELATIVELY MODEST GAINS BRIAN CARY AN ECONOMIST WHO TRACKS SIX WESTERN STATES FOR FIRST INTERSTATE EXPLAINS THAT THE GROWTH RATES OF THE EARLY NINETEEN EIGHTIES PROBABLY WEREN'T SUSTAINABLE AND HE SEES THE CURRENT ARIZONA ECONOMY ON FIRM GROUND MR. CARY DISCERNS LITTLE OF THE FINANCIAL OVERHEATING THAT DEVASTATED THE STATE IN THE MID NINETEEN EIGHTIES ARIZONA'S CONSTRUCTION INDUSTRY IS GETTING A SHORT TERM BOOST FROM SHAKY SOUTHERN CALIFORNIA NONRESIDENTIAL BUILDERS ALREADY HAVE TAKEN JOBS AT EARTHQUAKE DAMAGE SITES IN LOS ANGELES THE QUAKE ALSO MAY BOLSTER ARIZONA'S TOURIST TRADE VACATIONERS SEEKING A WARM WEATHER DESTINATION SOMEWHERE OTHER THAN LOS ANGELES MAY GO TO ARIZONA MR. CARY SAYS ARIZONA'S FORTUNES COULD GET A FURTHER LIFT FROM THE STATE GOVERNMENT WHICH IS RUNNING A BUDGET SURPLUS AND IS DISCUSSING A ONE HUNDRED MILLION DOLLAR CUT IN PERSONAL INCOME TAXES THIS YEAR ANOTHER PLUS COULD BE THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH SEEMS SURE TO HELP BORDER STATES THAT ALREADY HAVE STRONG TIES TO MEXICO EXPLAINING TUCSON'S RAPID GROWTH PROFESSOR VEST SAYS QUOTE TUCSON STARTED THE CORRECTIVE PROCESS A YEAR BEFORE PHOENIX AND SOLVED THE OVERSUPPLY A YEAR SOONER QUOTE AND TUCSON ONLY ABOUT FORTY MILES NORTH OF THE MEXICAN BORDER WILL ESPECIALLY BENEFIT FROM NAFTA BUT ARIZONA STATE ECONOMISTS CONTEND THAT PHOENIX AND SURROUNDING MARICOPA COUNTY WILL REGAIN THE LEAD TRACY CLARK WHO IS ALSO ECONOMICS EDITOR OF THE AREA'S QUARTERLY BLUE CHIP ECONOMIC FORECAST BELIEVES THAT PHOENIX WILL SOON REFLECT THE NATIONAL ECONOMIC RECOVERY FASTER IN PART BECAUSE OF THE CITY'S BETTER TRANSPORTATION LINKS THE CELLULAR ARM OF TELECOMMUNICATIONS COMPANY U. S. WEST INCORPORATED SAID IT AGREED TO PURCHASE EQUIPMENT MADE BY MOTOROLA INCORPORATED TO REPLACE AND UPGRADE ITS CELLULAR NETWORK IN ARIZONA TERMS WERE NOT DISCLOSED THE AGREEMENT LENDS MOMENTUM TO MOTOROLA'S APPROACH TO ALL DIGITAL CELLULAR NETWORKS CALLED CODE DIVISION MULTIPLE ACCESS U. S. WEST HAS ALREADY USED MOTOROLA CELLULAR EQUIPMENT IN REVAMPING CELLULAR SYSTEMS IN DENVER SEATTLE AND MINNEAPOLIS MOTOROLA IS BASED IN SCHAUMBURG ILLINOIS IN THE PRIVATE LABEL BUSINESS QUOTE P. C. QUOTE DOESN'T MEAN POLITICALLY CORRECT THE INITIALS STAND FOR PRESIDENT'S CHOICE AN EXTENSIVE LINE OF UPSCALE FOODS THAT PROMOTERS SAY REPRESENTS THE FUTURE FOR SUCCESSFUL SUPERMARKETS PRESIDENT'S CHOICE AND ITS PRIMARY PITCHMAN DAVID A. NICHOL HAVE ACHIEVED AN EXTRAORDINARY MARKETING FEAT A PRIVATE LABEL WITH CACHET PRIVATE LABEL PRODUCTS WHOSE QUALITY EQUALS OR EXCEEDS NATIONAL BRAND PRODUCTS BUT ARE LESS EXPENSIVE HAVE LONG BEEN A STAPLE OF EUROPEAN GROCERS BUT IN THE U. S. HOUSE BRANDS TRADITIONALLY HAVE BEEN VIEWED AS POOR RELATIONS INCREASINGLY HOWEVER SUPERMARKETS ARE USING PRIVATE LABEL PRODUCTS AND UPSCALE LINES OF THEM AS A COMPETITIVE WEAPON A. AND P. HAS A PREMIUM HOUSE BRAND CALLED MASTER CHOICE SAFEWAY HAS SELECT VONS IN CALIFORNIA FEATURES ROYAL REQUEST WHILE RIVAL RALPH'S GROCERY HAS ITS PRIVATE SELECTION LABEL EIGHT BIG U. S. CHAINS IN MAJOR CITIES INCLUDING NEW YORK CHICAGO AND LOS ANGELES CARRY PRESIDENT'S CHOICE WHICH WAS CREATED TEN YEARS AGO BY LOBLAW COMPANIES LIMITED OF TORONTO TODAY PRESIDENT'S CHOICE IS THE LEADING GROCERY HOUSE BRAND IN CANADA IN THE U. S. IT IS FEATURED IN AMERICAN STORES COMPANY'S JEWEL AND STAR UNITS AND D'AGOSTINO SUPERMARKETS INCORPORATED FROM P. C.'S INCEPTION MR. NICHOL HAS BEEN THE GREGARIOUS GOURMAND BEHIND THE BRAND'S MARKETING SPENDING HOURS IN LOBLAW'S TEST KITCHENS AND HIS OWN DEVELOPING AND TASTING PRODUCTS HE HAS APPEARED IN THIRTY MINUTE INFOMERCIALS ON CANADIAN TELEVISION AND IN A COLORFUL FREE PULP MAGAZINE HE EDITS SOMETIMES HOLDING ONE OF HIS FRENCH BULLDOGS AND A GLASS OF WINE TO CELEBRATE P. C.'S RECENT TENTH ANNIVERSARY LOBLAW PUBLISHED THE DAVE NICHOL COOKBOOK IN WHICH EACH RECIPE CALLS FOR AT LEAST ONE AND OFTEN SEVERAL PRESIDENT'S CHOICE PRODUCTS A ONE TIME BALL BEARINGS SALESMAN WHO EARNED A LAW DEGREE AT HARVARD AND THEN CONSULTED FOR MCKINSEY AND COMPANY MR. NICHOL CAME TO LOBLAW IN THE EARLY NINETEEN EIGHTIES TO HELP THE THEN TROUBLED CHAIN PART OF HIS SOLUTION PRESIDENT'S CHOICE RATHER THAN PUT COKE OR TIDE ON SALE ONE WEEK TO DRAW CUSTOMERS FEATURE YOUR OWN UPSCALE PRODUCTS YEAR ROUND MR. NICHOL URGED MUCH OF PRESIDENT'S CHOICE'S SUCCESS IS FASHIONED FROM IN YOUR FACE HYPE P. C. COOKIES AREN'T SIMPLY COOKIES THEY'RE DECADENT FROZEN PIZZA BECOMES THE ULTIMATE AND P. C. PEANUT BUTTER IS TOO GOOD TO BE TRUE A WORLD TRAVELER MR. NICHOL PLASTERS EXOTIC LABELS ON PRESIDENT'S CHOICE SAUCES AS IF THEY WERE STEAMER TRUNKS AS IN MEMORIES OF ANCIENT DAMASCUS TANGY POMEGRANATE GLAZE FOR YEARS THE RULE OF THUMB WAS DON'T MAKE THE PRODUCT DIFFERENT FROM THE BRAND LEADER SAYS BRIAN SHAROFF PRESIDENT OF THE PRIVATE LABEL MANUFACTURERS ASSOCIATION BUT NOW RETAILER BRANDS ARE SOMETIMES BETTER THAN THE NATIONAL ONES AND CHEAPER U. S. SALES DATA COMPILED FOR THE WALL STREET JOURNAL BY INFORMATION RESOURCES INCORPORATED'S INFOSCAN SERVICE REVEAL THAT THE UPSCALE PRIVATE LABEL IDEA WORKS VERY WELL IN SOME CATEGORIES IN COOKIES PRESIDENT'S CHOICE RACKED UP IMPRESSIVE U. S. SALES OF TWENTY ONE POINT FOUR MILLION DOLLARS FOR THE FIFTY TWO WEEKS ENDED SEPTEMBER TWELFTH A ONE HUNDRED FORTY PERCENT INCREASE FROM A YEAR EARLIER FOR THE PERIOD JUICE SALES TOTALED FIVE POINT FOUR MILLION DOLLARS AND CAT FOOD FIVE MILLION DOLLARS ALTHOUGH OTHER CATEGORIES HAD MORE MODEST SALES READY TO EAT P. C. CEREAL THREE POINT FIVE MILLION DOLLARS POPCORN ONE POINT THREE MILLION DOLLARS AND SPAGHETTI SAUCE ONE POINT TWO MILLION DOLLARS ALL HAD AT LEAST DOUBLE DIGIT INCREASES P. C. HAS ABOUT ONE THOUSAND PRODUCTS FROM BEER TO FRESH MEATS BUT DESPITE THE HUGE SHADOW IT HAS CAST OVER THE GROCERY INDUSTRY PRESIDENT'S CHOICE IS STILL A TINY CONTENDER COMPARED WITH SOME NATIONAL BRANDS IN ONE MIDWESTERN CHAIN P. C.'S DECADENT CHOCOLATE CHIP COOKIE ONLY HAD A ONE POINT ONE PERCENT DOLLAR SHARE OF ALL PACKAGED COOKIE SALES COMPARED WITH SEVEN POINT SEVEN PERCENT FOR NABISCO'S OREOS AND FIVE POINT NINE PERCENT FOR NABISCO'S CHIPS AHOY ACCORDING TO INFORMATION RESOURCES P. C. GOURMET POPCORN CAME IN THIRD BEHIND CONAGRA'S ORVILLE REDENBACHER AND GENERAL MILLS'S POP SECRET WITH A SIXTEEN POINT FOUR PERCENT DOLLAR SHARE FOR THE FIFTY TWO WEEKS BUT P. C.'S SHARE IN CANNED CAT FOOD SLIPPED THREE POINT THREE PERCENT FROM A YEAR EARLIER ITS POSITION IN BOTTLE JUICES FELL THIRTEEN POINT NINE PERCENT IT HAD A VERY SMALL PIECE OF THE CHAIN'S CEREAL BUSINESS AND IT WAS BARELY REGISTERING IN SPAGHETTI SAUCES LAST MONTH MR. NICHOL FIFTY THREE YEARS OLD RESIGNED FROM LOBLAW HE WILL REMAIN A CONSULTANT BUT IS ADVISING OTHER MANUFACTURERS AND RETAILERS INCLUDING WAL MART WHICH IS USING P. C. AS A MODEL FOR ITS RECENT SAM'S AMERICAN CHOICE BRAND BUT NOT ALL RETAILERS BUY INTO THE IDEA OF AN UPSCALE HOUSE BRAND AT INDEPENDENT GROCERS ALLIANCE WHICH SUPPLIES FOUR THOUSAND STORES IN SIX COUNTRIES IT IS SEEN AS CONFUSING THE CONSUMER AN IGA SPOKESMAN SAYS THE NATION'S BIGGEST SUPERMARKET CHAIN CINCINNATI BASED KROGER COMPANY EXPERIMENTED WITH A PREMIUM PRIVATE LABEL BUT DROPPED IT QUOTE THE ADVICE WE GOT WAS IF YOU WANT TO HAVE A STRONG PRIVATE LABEL PUT YOUR NAME ON IT HAVE CONSISTENT GOOD QUALITY AND TRY TO MATCH THE NATIONAL BRANDS THAT'S WHAT WE'VE DONE A KROGER SPOKESMAN SAYS ADDING THAT ITS PRIVATE LABEL REPRESENTS EIGHTEEN PERCENT OF THE CHAIN'S SALES EVEN AMERICAN STORES P. C.'S BIGGEST U. S. DISTRIBUTOR USES THE BRAND SELECTIVELY WHILE ITS CHICAGO BASED JEWEL CHAIN FEATURES TWO HUNDRED TO TWO HUNDRED FIFTY ITEMS AMERICAN'S LOW PRICE LUCKY STORES ON THE WEST COAST CARRY ONLY A FEW ITEMS AT AMERICAN'S UPSCALE STAR STORES P. C. IS POPULAR IT'S CLEARLY A POINT OF DIFFERENTIATION SAYS EDWARD COOK DIRECTOR OF CONTROLLED BRANDS AT HARRIS TEETER COMPANY A CHARLOTTE N. C. CHAIN THAT CARRIES PRESIDENT'S CHOICE THE CHAIN HOPES THE ADDITION OF FROZEN ENTREES PASTAS AND MARINATED MEATS WILL HELP DOUBLE P. C. SALES THIS YEAR BUT MR. COOK SAYS HARRIS TEETER DROPPED P. C.'S SPLENDIDO PIZZA CRUST WHEN IT DIDN'T SELL UP TO EXPECTATIONS P. C. USUALLY IS PRICED BELOW THE NATIONAL MARKET LEADER AT HARRIS TEETER FOR EXAMPLE THREE OUNCE CANS OF PRESIDENT'S CHOICE GOURMET CAT FOOD COST ABOUT TWENTY FIVE CENTS WHILE THE CATEGORY'S LEADING BRAND NESTLE'S FANCY FEAST COSTS ABOUT THIRTY SIX CENTS SEVERAL U. S. BASED GROCERY SUPPLIERS ALSO MAKE UPSCALE PRIVATE LABEL PRODUCTS THAT THEY SAY RIVAL PRESIDENT'S CHOICE TOPCO ASSOCIATES INCORPORATED SKOKIE ILLINOIS DEVELOPED A WORLD CLASSICS LINE NOW STOCKED BY TWENTY EIGHT SUPERMARKET CHAINS SHURFINE CENTRAL CORPORATION A NORTHLAKE ILLINOIS COOPERATIVE THAT SERVES ABOUT TWENTY THOUSAND GROCERS AND CONVENIENCE STORES NATIONWIDE DEVELOPED AN UPSCALE LINE USING WINNING RECIPES FROM STATE AND COUNTY FAIRS ITS ADULTS ONLY MACARONI AND CHEESE FEATURES FIVE RIBBON WINNING CHEESES THEY ALWAYS SAY THEY'RE THE BEST SHURFINE'S ART BOUSEL SAYS OF PRESIDENT'S CHOICE BUT WE PRESENT PROOF THAT OURS IS THE BEST MR. BOUSEL SAYS NOTING THAT PICTURES OF RIBBON WINNERS APPEAR ON THE PACKAGES MADISON GROUP ASSOCIATES INCORPORATED WHICH HAS FACED QUESTIONS ABOUT THE PRECISE VALUE OF ITS GROWING ASSETS SAID WILLIAM T. CRAIG ITS CHIEF EXECUTIVE OFFICER AND A DIRECTOR IS RESIGNING FROM BOTH POSTS MEANWHILE THE SECURITIES AND EXCHANGE COMMISSION HAS CONTACTED AT LEAST THREE PEOPLE REGARDING THEIR DEALINGS WITH MADISON GROUP ONE OF THOSE INDIVIDUALS A FORMER EMPLOYEE SAID THE S. E. C. HAD ASKED ABOUT HOW THE COMPANY VALUED ITS ASSETS THE PERSON ADDED THAT THE S. E. C. ALSO APPEARED INTERESTED IN THE TRADING OF MADISON GROUP STOCK NEITHER THE COMPANY NOR THE S. E. C. WOULD COMMENT ON ANY POSSIBLE INQUIRY IN NASDAQ STOCK MARKET TRADING YESTERDAY MADISON GROUP CLOSED AT ONE DOLLAR OFF THREE POINT ONE TWO FIVE CENTS OR THREE PERCENT ON VOLUME OF SEVENTY FIVE THOUSAND NINE HUNDRED SHARES THE MOVES FOLLOW A TUMULTUOUS YEAR FOR MADISON GROUP BASED IN FORT LAUDERDALE FLORIDA FORMERLY A REAL ESTATE CONCERN KNOWN AS CANAVERAL INTERNATIONAL MADISON GROUP MADE SEVERAL MEDIA ACQUISITIONS UNDER THE DIRECTION OF MR. CRAIG ACCORDING TO KENNETH L. LUCAS PRESIDENT OF THE COMPANY AND THE MAN NAMED YESTERDAY TO SUCCEED MR. CRAIG AS CHIEF EXECUTIVE AS A RESULT THE COMPANY'S REPORTED ASSETS SKYROCKETED AMONG OTHER PROPERTIES MADISON GROUP NOW OWNS FOUR VIDEO LIBRARIES AND A RADIO STATION IN AMARILLO TEXAS ACCORDING TO A RECENT SECURITIES FILING THE COMPANY'S REPORTED ASSETS FOR THE PAST TWO FISCAL YEARS THIRTY SIX POINT FOUR MILLION DOLLARS IN FISCAL NINETEEN NINETY THREE THIRTY FOUR POINT FOUR MILLION DOLLARS IN FISCAL NINETEEN NINETY TWO JUMPED SUBSTANTIALLY FROM THE SIX POINT THREE MILLION DOLLARS REPORTED IN NINETEEN NINETY ONE MOST OF THE GAIN WAS ATTRIBUTED TO THE MEDIA PROPERTIES THOSE MEDIA ASSET VALUATIONS HOWEVER WERE CALLED INTO QUESTION IN JANUARY NINETEEN NINETY THREE BY MADISON GROUP'S FORMER ACCOUNTANT VAUGHN M. SARKISSIAN WHO RECOMMENDED THAT AN INDEPENDENT SPECIALIST BE HIRED TO EVALUATE THE VIDEO LIBRARIES ACCORDING TO THE SECURITIES FILING ALTHOUGH THE ACCOUNTANT LATER RESIGNED MADISON GROUP'S BOARD RETAINED A SPECIALIST TO EVALUATE THE LIBRARIES THE FILING STATES YESTERDAY MR. LUCAS DECLINED TO ELABORATE ON THE STATUS OF THE VIDEO LIBRARY VALUATIONS MR. CRAIG WHO THE COMPANY SAID IS LEAVING QUOTE TO CONCENTRATE ON OTHER BUSINESS VENTURES QUOTE COULDN'T BE REACHED FOR COMMENT MR. LUCAS SAID THE COMPANY IS IN THE MIDST OF A RESTRUCTURING IN WHICH THE VIDEO LIBRARY CONSISTING PRIMARILY OF COUNTRY AND GOSPEL MUSIC PERFORMANCES IS BEING CONVERTED INTO MARKETABLE PACKAGES DONALD L. MCWHORTER FIFTY EIGHT YEARS OLD PRESIDENT OF THIS BANK HOLDING COMPANY WAS NAMED TO THE ADDITIONAL AND NEWLY CREATED POST OF CHIEF OPERATING OFFICER MR. MCWHORTER'S RESPONSIBILITIES INCLUDE THE MANAGEMENT OF ALL BANK ONE BANKS AND STATE HOLDING COMPANIES AS WELL AS ITS CREDIT CARD LEASING AND FINANCE COMPANY OPERATIONS HE ALSO WILL BE RESPONSIBLE FOR BANC ONE SERVICES CORPORATION THE CORPORATION'S DATA PROCESSING AND TECHNOLOGY UNIT U. S. SHOE CORPORATION GRAPPLING WITH QUOTE INEFFICIENCIES QUOTE IN ITS ORGANIZATION SAID IT IS CUTTING SEVEN HUNDRED JOBS OR ONE POINT EIGHT PERCENT OF ITS WORK FORCE AND TAKING A RELATED CHARGE THAT WILL REDUCE FISCAL FOURTH QUARTER EARNINGS THE MOVE IS U. S. SHOE'S BIGGEST SINGLE JOB CUT SINCE MAJOR MANAGEMENT CHANGES BEGAN EARLY LAST YEAR IN JUNE THE CINCINNATI BASED APPAREL SHOE AND OPTICAL RETAILER ELIMINATED ONE HUNDRED JOBS PRIMARILY IN ITS APPAREL UNIT AND NOW EMPLOYS FORTY THOUSAND THE NEW CUTS ARE COMPANYWIDE RETAIL ANALYSTS AND CONSULTANTS SAID THE PLAN WHICH INCLUDES CONSOLIDATING MANAGEMENT LAYERS AND CENTRALIZING OPERATIONS IS LONG OVERDUE SEVERAL QUESTIONED WHETHER IT GOES FAR ENOUGH TO REVIVE A COMPANY WHOSE EARNINGS HAVE ERODED AS ITS WOMEN'S APPAREL AND FOOTWEAR STORES HAVE FALLEN BEHIND THE TIMES IT REALLY DOESN'T ADDRESS THE CORE PROBLEM WHICH IS NOT ENOUGH CUSTOMERS AND NOT ENOUGH MERCHANDISE BEING SOLD SAID KURT BARNARD PRESIDENT OF BARNARD'S RETAIL CONSULTING GROUP NEW YORK THERE'S A LACK OF EXCITEMENT IN TERMS OF FASHIONS AND AN INABILITY TO SWEEP CUSTOMERS OFF THEIR FEET AND INTO THEIR STORES ROBERT M. BURTON A SPOKESMAN FOR U. S. SHOE SAID THE COMPANY ACKNOWLEDGES THESE CONCERNS AND HAS ADDRESSED THE PRODUCT ISSUE AGGRESSIVELY THE PAST YEAR BY HIRING PEOPLE WITH PROVEN BACKGROUNDS IN THESE AREAS ANALYSTS EXPECT U. S. SHOE TO POST A PROFIT ALBEIT A SMALL ONE IN THE QUARTER ENDING JANUARY TWENTY NINTH IN THE YEAR AGO FOURTH QUARTER THE COMPANY POSTED NET INCOME OF EIGHT HUNDRED THIRTY TWO THOUSAND DOLLARS OR TWO CENTS A SHARE REFLECTING LOSSES IN ITS FOOTWEAR UNIT SALES WERE SIX HUNDRED EIGHTY EIGHT POINT TWO MILLION DOLLARS A SPOKESMAN FOR U. S. SHOE SAID THE REORGANIZATION IS EXPECTED TO SAVE MORE THAN TWENTY FIVE MILLION DOLLARS IN THE NEXT FISCAL YEAR AND MORE THAN TWENTY FIVE MILLION DOLLARS THE FOLLOWING YEAR THE COMPANY IS OVERHAULING ITS RETAIL FOOTWEAR BUSINESS WHICH HAD THREE AUTONOMOUS UNITS BANISTER CINCINNATI SHOE AND EASY SPIRIT AND NOW WILL HAVE TWO A COMBINED BANISTER CINCINNATI SHOE UNIT AND EASY SPIRIT THE COMPANY ALSO HAS ELIMINATED THE JOBS OF THE THREE TOP BANISTER EXECUTIVES INCLUDING THE UNIT'S PRESIDENT TO CREATE ADDITIONAL EFFICIENCIES IN WOMEN'S APPAREL THE COMPANY IS CHANGING THE WAY IT MANAGES MALL STORES DESIGNATING A SINGLE MANAGER FOR ALL STORES WITHIN A GIVEN MALL INSTEAD OF HAVING MANAGERS FOR EACH STORE MOREOVER DISTRICT AND REGIONAL MANAGERS WILL COVER ALL STORES SUCH AS CASUAL CORNER PETITE SOPHISTICATE AUGUST MAX WOMAN AND CAPEZIO WITHIN A GEOGRAPHIC REGION UNDER THE CURRENT SYSTEM ONE MANAGER MIGHT HANDLE CASUAL CORNER FOR A GIVEN REGION AND ANOTHER WOULD OVERSEE THE REGION'S PETITE SOPHISTICATES CONSULTANTS NOTED THAT SPECIALTY RETAILERS LIKE U. S. SHOE AND LIMITED INCORPORATED ARE STRUGGLING WITH DECLINING MALL TRAFFIC AND THE MOUNTING STRENGTH OF DISCOUNT AND DEPARTMENT STORES IN APPAREL AND FOOTWEAR THIS IS A VERY FIRST STEP AND IT'S VERY MUCH BELATED FOR A COMPANY LIKE U. S. SHOE SAID GEORGE ROSENBAUM CHIEF EXECUTIVE OF LEO J. SHAPIRO AND ASSOCIATES CHICAGO QUOTE IT'S A SURVIVAL MOVE BECAUSE IF THEY DON'T TAKE THE COST CUT THEY'RE GOING TO BE PRICED OUT OF THE BUSINESS QUOTE MR. BURTON THE U. S. SHOE SPOKESMAN SAID THESE PRESSURES REQUIRE COMPANIES LIKE OURS TO BE MORE SPECIALIZED AND NICHEDRIVEN WE NEED OUR OWN PRIVATE LABEL BRAND THAT WILL BE RECOGNIZED BY THE CUSTOMER IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING U. S. SHOE SHARES FELL TWENTY FIVE CENTS TO THIRTEEN POINT EIGHT SEVEN FIVE DOLLARS LIKE MOST MANIACAL GARDENERS I SLOG THROUGH THE WINTER KNEE DEEP IN A GARDEN CATALOG BOG I DID NOT HAVE TO SEND FOR DOZENS OF THE ONE THOUSAND PLUS CATALOGS LISTED IN GARDENING BY MAIL HOUGHTON MIFFLIN FOURTH EDITION FOUR HUNDRED PAGES EIGHTEEN DOLLARS AND NINETY FIVE CENTS BARBARA BARTON'S LATEST LAST WORD ON GARDEN SOURCERY BUT I DID AND NOW I FEEL OBLIGED TO DO MY BIT FOR THE GROSS NATIONAL TILTH AND BUY MORE PLANTS YEARS OF OVERINDULGENCE IN GARDEN CATALOGS QUALIFY ME TO HELP YOU MASTER GARDEN CATALOGORRHEA IN QUOTE CATALOG CREATIVE ONE HUNDRED ONE QUOTE A CATALOG WRITING TUTORIAL OFFERED TO MEMBERS OF THE MAILORDER ASSOCIATION OF NURSERYMEN MAN SEVERAL YEARS BACK PLANT SELLERS WERE ENCOURAGED ADJECTIVALLY TO QUOTE REALLY LET GO AND GET WILDLY ENTHUSIASTIC EVEN GO WAY OVERBOARD YOU CAN ALWAYS TONE DOWN EXCESSIVE COPY LATER HAPPILY FOR THE AMUSEMENT OF READERS THE EXCESSIVE COPY IN MANY G. LOGS BOLD IN YOUR TYPEFACE CLAIMS IN GIGANTIC EMPHATIC LEAPING LETTERS NEVER GETS TONED DOWN WILL IMPERIAL TREE PEONIES REALLY THROW BLOOMS AS BIG AS A CHILD'S HEAD AND LIVE FOR A CENTURY OR EVEN MORE OWEN NURSERY WHAT ABOUT AMAZING ROOF HIGH CLIMBING TOMATOES' HYPE HYPE HOORAY QUOTE A SINGLE SLICE COVERS A SLICE OF BREAD QUOTE A SINGLE PLANT CLIMBS AS TALL AS A HOUSE GARDENERS' CHOICE AND WHAT OF THE BLUE ROSE FULLY DOUBLE ROSETTE FLOWERS IN A SHADE OF DEEP OCEAN BLUE TRUMPETED AS NEW BY BURPEE DON'T EXPECT HUNDREDS OF THORNLESS STEMS FROM A DOZEN OF OUR VIGOROUS BLUE ROSES' BECAUSE BURPEE'S BLUE ROSES ARE NOT ROSES AND NOT BLUE G. LOGS THAT PUSH THE GUINNESS BOOK OF WORLD RECORDS GIANT SUPER COLOSSAL COMPETITIVE SCHOOL OF PLANT AND SEED MERCHANDISING MAKE FOR ENTERTAINING READING NOT GARDENING CHALLENGE THE WORLD RECORD OF A SIX AND ONE QUARTER POUND TOMATO QUOTE G. C. DO YOU A THIN OBSESSED AMERICAN GARDENER REALLY WANT TO GROW A FATSO TOMATO WITH AN EIGHTEEN INCH WAIST FORGET GARDENING AS RELAXATION WHEN YOU GENTLE GARDENER ARE EGGED ON TO CHALLENGE THE WORLD RECORD OF A SIX HUNDRED POUND PUMPKIN BY PURCHASING SEEDS WITH THE GENETIC ABILITY TO SET WORLD RECORDS G. C. BEFORE TILTING YOUR TROWEL TOWARD THE VEGETABLE OLYMPICS PAUSE TO PONDER HOW MANY PECKS OF PUDGY PUMPKINS YOUR PATCH CAN POSSIBLY PUT UP WITH THE PLANT SO DESCRIBED IF YOU ORDER IT WILL IN NO TIME QUITE LIKELY OBLITERATE ALL OTHER VEGETATION IN YOUR PERSONAL PARADISE EXERCISE EXTREME CAUTION IF TEMPTED FOR EXAMPLE BY EASY TO GROW FAST GROWING WILLOWS OWEN THEY WILL SPEEDILY ENGULF YOUR YARD IN MESSY SHADE WHILE SOUNDLESSLY SUCKING UP ALL WATER ON THE PREMISES EASY SLOW GROWING PLANTS ALMOST NEVER GET TOUTED EXAMINE YOUR CONSCIENCE WHEN OWEN DECLARES MASTER GARDENERS HAVE BEEN KNOWN TO PULL THE FEMALE PLANTS FROM THEIR ASPARAGUS PATCH SO AS TO FAVOR THE BIGGER MORE SUCCULENT MALE PLANTS DARE YOU DO THE BOTANICALLY INCORRECT AND ORDER ALL MACHO JERSEY GIANT ASPARAGUS A VARIETY THAT GROWS ONLY MALE PLANTS WILL VEGGIE FEMINISTS INSIST ON LEVELING THE PLANTING FIELD BY CHOOSING TO GROW THE ALL FEMALE GOLDEN ZUCCHINI THAT DOUBLES YIELDS FULLY COGNIZANT THAT ALL FEMALE ZUCCHINI MEANS MORE FRUIT G. C. MORE ZUCCHINI BY THE IDES OF AUGUST ALL ZUCCHINI GLUTTED GARDENERS ARE CURSING THE SEED TRADE FOR A NEW DEVELOPMENT THAT IS TAKING THE ZUCCHINI IN THE WRONG DIRECTION PRAY FOR THE MUCH LESS FRUITFUL Z. GARDENERS WHO WOULD CULTIVATE ECOLOGICALLY NONDESTRUCTIVE PLANT BUYING HABITS WILL USE THIS INVALUABLE BOOK AS A CATALOG CROSS CHECK ON THE PROVENANCE OF BULBS TERRESTRIAL ORCHIDS INSECTIVOROUS PLANTS NORTH AMERICAN WILDFLOWERS IN THE GARDEN TRADE TO BUY OR NOT TO BUY MUST TURN ON WHENCE ULTIMATELY THE PLANTS CAME FROM THE NURSERY PROPAGATION BENCH OR FROM THE WILD BY REFUSING TO BUY SPECIES WHOSE STATUS IS UNCLEAR MS. MARSHALL WRITES GARDENERS CAN PROMOTE PROPAGATION AS WELL AS APPROPRIATE HARVESTING METHODS DON'T BE MISLED BY SUCH STANDARD CATALOG BOILERPLATE AS QUOTE GROWN IN COMMERCIAL NURSERIES QUOTE QUOTE FIELD GROWN QUOTE OR QUOTE NURSERY GROWN QUOTE TO DECODE FOR EVERY NURSERY GROWN UNDERSTAND NURSERY GROWN ON THEN SUBSTITUTE NURSERY LAUNDERED THIS DECEPTIVE LANGUAGE IS NOT ONLY SANCTIONED BY THE FEDERAL TRADE COMMISSION BUT WAS ACTUALLY COOKED UP FOR ITS NINETEEN SEVENTY NINE GUIDES FOR THE NURSERY INDUSTRY VIZ. IT IS AN UNFAIR TRADE PRACTICE TO SELL OFFER FOR SALE OR DISTRIBUTE INDUSTRY PRODUCTS COLLECTED FROM THE WILD STATE WITHOUT DISCLOSING THAT THEY WERE COLLECTED FROM THE WILD STATE PROVIDED HOWEVER THAT IF COLLECTED PLANTS ARE GROWN IN THE NURSERY ROW FOR AT LEAST ONE GROWING SEASON BEFORE BEING MARKETED SUCH DISCLOSURE IS NOT REQUIRED SO MUCH FOR TRUTH IN MARKETING ETHICAL G. LOGS TAKE THIS INTO ACCOUNT AND GIVE CUSTOMERS PRECISE DESCRIPTIONS OF PROPAGATION METHODS MARSHALL OBVIOUSLY THE MORAL HORTPERSON SHOULD MAKE EVERY EFFORT TO DO BUSINESS WITH CATALOGS THAT GUARANTEE ALL OUR BULBS ARE GROWN FROM SEED OR TISSUE CULTURE OR HAVE BEEN VEGETATIVELY PROPAGATED ROBINETT BULB FARM OR EXPLAIN NONE OF THE PLANTS WE SELL HAVE BEEN COLLECTED FROM THE WILD YOU WILL NOT FIND THOSE VARIETIES SUCH AS TRILLIUMS AND LADY SLIPPER ORCHIDS THAT ARE VIRTUALLY ALWAYS COLLECTED ALL OF THE WILDFLOWERS AND HARDY FERNS LISTED IN OUR CATALOG ARE NURSERY PROPAGATED THE CROWNSVILLE NURSERY TO CATALOGS OFFERING QUOTE RARE AND UNUSUAL SPRING FLOWERING BULBS QUOTE JACQUES AMAND OR QUOTE THE BEAUTIFUL AND THE RARE QUOTE GREENLADY GARDENS SLASH THE A. J. SKITTONE COLLECTION AND NO INFO ON ULTIMATE SOURCES JUST SAY NO DISTINGUISH BETWEEN MASS MARKET COMMODITIES MERCHANDISERS OF PLANT PRODUCT AND PLANTSPEOPLE WHO PROPAGATE AND GROW THE PLANTS THEY SELL DO NOT LOSE YOUR SELF CONTROL WHEN COZIED UP TO BY SEEDS SUPPLIERS TO MONET AND CHARLES DARWIN THOMPSON AND MORGAN KEEP YOUR COOL AROUND THE CATALOG THAT TRIES TO TURN HORTICULTURE INTO FAITH IN GOD FELLOW MAN AND IN THE SPIRITUAL VALUE OF GARDENING AND INCLUDES A MODIFIED LORD'S PRAYER ENDING AMEN THE PARK CREED OF PARK SEED EXCEPT FOR THE OCCASIONAL STATUE OF SAINT FRANCIS OR MODEST ACTS OF PIETY TOWARD SAINT GERTRUDE JEKYLL SAINT LIBERTY HYDE BAILEY OR SAINT LUTHER BURBANK PRACTICING PLANTSPERSONS REMAIN CAPABLE OF DISTINGUISHING THEIR QUASIRELIGIOUS AGONY IN THE GARDEN FROM THE REAL THING DEVOUT G. LOG EVANGELISTS DO NOT CONFUSE THEMSELVES WITH MATTHEW MARK LUKE OR JOHN FOREIGN BUYING PROPELLED JAPANESE STOCKS HIGHER WEDNESDAY DESPITE A CONTINUED POLITICAL STALEMATE THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX JUMPED FOUR HUNDRED EIGHTY NINE POINT EIGHT FIVE POINTS OR TWO POINT SIX PERCENT TO NINETEEN THOUSAND ONE HUNDRED THIRTY EIGHT POINT TWO ONE IN TRADING THURSDAY IN TOKYO THE NIKKEI EASED THIRTY NINE POINT SIX OH POINTS TO CLOSE THE MORNING SESSION AT NINETEEN THOUSAND NINETY EIGHT POINT SIX ONE WEDNESDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT THREE HUNDRED SIXTY MILLION SHARES UP FROM TWO HUNDRED EIGHTY ONE POINT EIGHT MILLION SHARES A DAY EARLIER GAINERS SWAMPED DECLINERS NINE HUNDRED SIXTY EIGHT TO ONE HUNDRED FOURTEEN THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES ADVANCED THIRTY POINT NINE FOUR OR TWO PERCENT TO ONE THOUSAND FIVE HUNDRED FIFTY POINT THREE TWO FOREIGNERS HAVE BEEN DEDICATED BUYERS IN TOKYO THIS MONTH LIFTING THE NIKKEI NINE POINT NINE PERCENT FOR THE YEAR THESE BUYERS WERE EVEN IN THE MARKET DURING A JAPANESE DOMINATED SELLOFF MONDAY THAT SET THE NIKKEI BACK FOUR POINT NINE PERCENT MANY JAPANESE INVESTORS WERE WORRIED THAT THE PARLIAMENTARY DEFEAT OF A POLITICAL REFORM PROGRAM WHICH OCCURRED AFTER TRADING CLOSED LAST FRIDAY MAY SIGNAL WEEKS OF POLITICAL TURMOIL QUOTE THE MARKET IS ALL UP TO THE FOREIGNERS NOW QUOTE HIROYUKI FUKUSHIMA A TRADER AT NIKKO SECURITIES COMPANY SAID ADDING THAT THE FOREIGN BULLISHNESS QUOTE HAS SURPRISED US QUOTE EFFORTS WEDNESDAY FOR A COMPROMISE WITH THE OPPOSITION LIBERAL DEMOCRATIC PARTY PRODUCED NOTHING BUT MANY OVERSEAS INVESTORS SEEMED TO BELIEVE THAT NO MATTER WHICH POLITICIAN EVENTUALLY TRIUMPHS JAPAN STILL WILL HAVE GENERALLY UNASSUMING AND CONSERVATIVE LEADERS ABETTED BY THE SAME BUREAUCRATS WHO HAVE CRAFTED JAPANESE POLICY FOR DECADES IF THEY THINK IT'S TIME TO BUY MR. FUKUSHIMA SAID IT DOESN'T MATTER WHAT HAPPENS IN JAPANESE POLITICS FOREIGN INVESTORS APPARENTLY BELIEVE THAT THE TOKYO MARKET BATTERED BY FOUR BEARISH YEARS IS OVERDUE FOR A RISE BUT THEY ALSO MAY BE COUNTING ON A COUPLE OF BENEFITS THAT MOST JAPANESE WON'T SEE CURRENCY IS ONE FOREIGN INVESTORS TEND TO OWN A LOT OF JAPANESE ELECTRONICS AND AUTO EXPORTERS IF THE YEN WEAKENS THOSE COMPANIES WILL DO RELATIVELY WELL AS THEIR PRODUCTS BECOME LESS EXPENSIVE IN OVERSEAS MARKETS IF THE YEN STRENGTHENS THOSE EXPORTERS MAY SUFFER BUT INVESTORS GET CURRENCY GAINS MANY U. S. FUND MANAGERS HAD A MEDIOCRE NINETEEN NINETY THREE IN JAPANESE STOCKS BUT STILL GAINED ELEVEN PERCENT ON THE STRONGER YEN THE GOVERNMENT MAY BE ANOTHER BENEFIT GOVERNMENT FUNDS HAVE PERIODICALLY PROPPED UP THE JAPANESE MARKET FOR MORE THAN A YEAR AND IN APRIL NEW MONEY EXCEEDING TWO TRILLION YEN EIGHTEEN BILLION DOLLARS IS TO BE RELEASED FOR STOCK PURCHASES THAT ISN'T ENOUGH TO BAIL OUT LARGE JAPANESE SHAREHOLDERS BUT NIMBLE FOREIGNERS WITH LESS TOTAL CASH IN THE MARKET COULD EASILY SELL THEIR SHARES TO THE GOVERNMENT IF THEY TURNED NEGATIVE ON JAPAN ON FUNDAMENTALS SEVERAL LOCAL ANALYSTS BELIEVE IT IS TOO EARLY TO BUY JAPANESE STOCKS I DON'T SEE THE BUSINESS PERFORMANCE IMPROVING THIS YEAR SAID KOICHIRO BEPPU SENIOR MARKET ANALYST AT DEUTSCHE BANK CAPITAL MARKETS ASIA LIMITED YOU HAVE TO ASK YOURSELF WHY THERE ARE ALMOST NO JAPANESE INVESTORS FOLLOWING THE FOREIGNERS INTO THE MARKET SAID JOHN BALDWIN RESEARCH DIRECTOR AT JARDINE FLEMING SECURITIES LIMITED HE SAID THE REASON IS THAT JAPANESE COMPANIES KNOW THEIR ECONOMIC WOES WILL FORCE THEM TO SELL MORE STOCK I ESTIMATE FORTY TRILLION YEN IN STOCK THAT HAS TO BE TAKEN OFF BALANCE SHEETS OVERSEAS INVESTORS WHO AREN'T BUYING THOSE ARGUMENTS AND ARE BUYING STOCKS SAID HUGE GOVERNMENT SPENDING LATER THIS YEAR WILL KICK START THE JAPANESE ECONOMY INDEED ONE LEGISLATOR INVOLVED IN FORMING THE COALITION'S ECONOMIC POLICIES SAID THE GOVERNMENT HOPES TO UNVEIL NEXT WEEK LONG AWAITED MEASURES TO REVIVE JAPAN'S ECONOMY NO MATTER WHETHER THE REFORM BILL IS PASSED THE PACKAGE PROBABLY WILL TOTAL THIRTEEN TRILLION YEN HE SAID AND INCLUDE BOTH PUBLIC WORKS SPENDING AND AN INCOME TAX CUT OF FIVE TRILLION YEN OR MORE STILL SUCH A PACKAGE MIGHT BE TOO LITTLE AND TOO LATE TO SPARK MUCH BUSINESS ACTIVITY FOR MONTHS JAPANESE INDUSTRY LEADERS AND INVESTORS HAVE BEEN CALLING FOR A MUCH BIGGER TAX CUT AT LEAST TEN TRILLION YEN LONDON SHARES EASED BUT FINISHED ABOVE THE DAY'S LOWS MADRID'S MARKET POSTED ITS FIFTH RECORD HIGH THIS YEAR HONG KONG STOCKS LOST TWO POINT TWO PERCENT AMID A CONTINUING SINOBRITISH DISPUTE ABOUT AIRPORT FINANCING WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED FOURTEEN POINT FOUR FOUR UP ONE POINT OH THREE REFLECTING HIGHER MARKETS IN ALL REGIONS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED NINETY NINE POINT ONE SIX UP ELEVEN POINT SIX SIX OR SIX POINT TWO PERCENT WITH UNITED PLANTATIONS OF MALAYSIA POSTING A TEN PERCENT GAIN IN ITS LOCAL CURRENCY TOY STOCKS TRAILED AT EIGHTY SEVEN POINT NINE THREE DOWN TWO POINT ONE EIGHT OR TWO POINT FOUR PERCENT WITH SEGA ENTERPRISES OF JAPAN SLIDING SIX POINT NINE PERCENT IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX FELL SEVEN POINT NINE POINTS TO THREE THOUSAND FOUR HUNDRED THIRTY SIX POINT ONE THE F. T. THIRTY STOCK INDEX DROPPED FIVE POINT OH POINTS TO TWO THOUSAND SIX HUNDRED FORTY ONE POINT TWO VOLUME WAS EIGHT HUNDRED TWENTY NINE POINT THREE MILLION SHARES COMPARED WITH NINE HUNDRED EIGHTY FOUR POINT NINE MILLION SHARES A DAY EARLIER THE LONDON MARKET HAD BEEN EXPECTED TO FALL SHARPLY CONTINUING THE PREVIOUS DAY'S SLIDE PRICES DROPPED IN REACTION TO WEAK DEMAND AT THE BRITISH GOVERNMENT'S BOND AUCTION BUT REBOUNDED AS BUYERS EMERGED TO LIMIT THE SLIDE AND THE FOCUS SHIFTED TO PICKING UP BARGAINS IN FRANKFURT THE MARKET WAS QUIET AND THE D. A. X. THIRTY STOCK INDEX FELL SEVEN POINT SIX ONE POINTS TO TWO THOUSAND ONE HUNDRED NINETEEN POINT ONE SEVEN IN PARIS WHERE CORPORATE EARNINGS PROVIDED THE FOCUS EQUITIES ROSE AFTER REBOUNDING FROM A WEAK OPENING IN MADRID STOCKS SURGED ONE POINT SIX PERCENT TO A NEW HIGH LED BY A RECOVERY IN THE BANKING SECTOR SINCE SPANISH BOND YIELDS HAVE FALLEN DOMESTIC INVESTORS CONTINUED TO POUR MONEY INTO THE STOCK MARKET IN STOCKHOLM SHARES ROSE AS DEMAND BY FOREIGN INVESTORS LED TO A WAVE OF BUYING AND IN ZURICH PRICES OVERCAME PROFIT TAKING TO SCORE SOLID GAINS AS MANY FUNDS BOUGHT STOCKS NOW MORE ATTRACTIVE GIVEN LOW BOND MARKET YIELDS IN HONG KONG PRICES SKIDDED IN THE WAKE OF CHINESE COMPLAINTS ABOUT THE BRITISH COLONY'S HUGE NEW AIRPORT PROJECT CHINA WHICH TAKES OVER SOVEREIGNTY OF HONG KONG IN NINETEEN NINETY SEVEN CHALLENGED THE TERRITORY'S RIGHT TO PROCEED WITH THE AIRPORT WORK WITHOUT A SINO BRITISH FINANCING AGREEMENT SOME INVESTORS USED THE DISPUTE AS AN EXCUSE TO TAKE PROFITS IN SINGAPORE SHARES FINISHED FLAT RECOVERING FROM A DEEP PLUNGE STEMMING FROM SELLING OF MALAYSIAN SHARES AND A WEAK MALAYSIAN CURRENCY RUMORS THAT THE MALAYSIAN GOVERNMENT WOULD SUPPORT THE MARKET SPARKED A BUYING SCRAMBLE IN SINGAPORE IN KUALA LUMPUR STOCKS REBOUNDED VIGOROUSLY FROM AN INTRADAY TUMBLE TO END ONE POINT SEVEN PERCENT HIGHER IN MANILA PRICES SLUMPED THREE POINT FOUR PERCENT ON AN IMPENDING OIL PRICE RISE WHICH COULD TRIGGER INFLATIONARY PRESSURE IN SEOUL STOCKS ROSE FOR THE FOURTH SESSION IN A ROW WHILE DEPOSITS WITH BROKERAGE FIRMS CONTINUED TO SWELL SIGNALING BOURSE STRENGTH 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END BATTLE LINES BEGAN FORMING IN THE HOUSE YESTERDAY OVER HOW QUICKLY AND EASILY BABY BELLS SHOULD BE ALLOWED TO PROVIDE LONG DISTANCE SERVICE DURING THE FIRST SUBCOMMITTEE HEARING ON A BILL TO OPEN COMPETITION IN THE TELECOMMUNICATIONS INDUSTRY REPRESENTATIVE MIKE SYNAR D. OKLAHOMA AND OTHER CONGRESSIONAL SUPPORTERS OF LONG DISTANCE CARRIERS SAID FEDERAL REGULATORS SHOULD HELP TO DECIDE WHETHER A BABY BELL CAN OFFER LONG DISTANCE SERVICE WITHIN A STATE THE BILL CURRENTLY LEAVES THAT DECISION TO THE STATES FOR THEIR PART THE REGIONAL PHONE COMPANIES ARE SEEKING TO SHORTEN THE WAITING PERIOD FOR ENTRY INTO LONG DISTANCE FROM THE FIVE YEARS DESIGNATED IN THE BILL CO SPONSORED BY REPRESENTATIVES JACK BROOKS D. TEXAS AND JOHN DINGELL D. MICHIGAN AND THEIR BACKERS ON THE JUDICIARY COMMITTEE INCLUDING REPUBLICAN HAMILTON FISH OF NEW YORK AND DEMOCRAT RICK BOUCHER OF VIRGINIA SAID THE BILL SHOULD IMPOSE A TOUGHER LEGAL STANDARD ON OUTSIDERS STRIVING TO BLOCK A BELL COMPANY'S APPLICATION TO PROVIDE LONG DISTANCE SERVICE IN ADDITION THE BABY BELL SUPPORTERS SAID THE BILL SHOULD BE CHANGED TO ALLOW THE REGIONAL PHONE COMPANIES TO OFFER QUOTE INCIDENTAL LONG DISTANCE QUOTE SERVICES SUCH AS COLLECTING TELEVISION PROGRAMMING SENT BY SATELLITE WITHOUT ANY FEDERAL REVIEW UNDER A NINETEEN EIGHTY TWO CONSENT DECREE BABY BELLS ARE BARRED FROM PROVIDING THESE AND OTHER LONG DISTANCE SERVICES BELL ATLANTIC CORPORATION HAD TO APPLY FOR A WAIVER FROM THE JUSTICE DEPARTMENT FOR ITS PLANNED ACQUISITION OF TELE COMMUNICATIONS INCORPORATED BECAUSE T. C. I. HAS CABLE PROGRAMMING INTERESTS LONGDISTANCE COMPANIES WANT TO KEEP THAT RESTRICTION ON BABY BELLS INTACT ANNE BINGAMAN THE JUSTICE DEPARTMENT'S TOP ANTITRUST OFFICIAL SAID IN TESTIMONY YESTERDAY THAT IT MAKES SENSE FOR BELL COMPANIES TO BE ABLE TO PROVIDE SUCH INCIDENTAL LONG DISTANCE SERVICE AS WELL AS CERTAIN CELLULAR PHONE TRANSMISSIONS WITHOUT SEEKING FEDERAL APPROVAL STILL SHE AND LARRY IRVING ASSISTANT COMMERCE SECRETARY MADE CLEAR THAT THEY WOULDN'T RECOMMEND ANY CHANGE THAT WOULD UPSET A COMPROMISE WORKED OUT LAST YEAR BY MR. DINGELL CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE AND MR. BROOKS CHAIRMAN OF THE JUDICIARY COMMITTEE MS. BINGAMAN REFERRING TO A DELICATE BALANCE SAID SHE THINKS THE BILL'S DIVISION OF REGULATORY POWERS IS JUST EXACTLY RIGHT THE BILL REQUIRES A BABY BELL TO APPLY TO THE FEDERAL COMMUNICATIONS COMMISSION AND THE JUSTICE DEPARTMENT BEFORE ENTERING LONG DISTANCE OR MANUFACTURING ANOTHER BUSINESS THEY ARE BARRED FROM BY THE NINETEEN EIGHTY TWO DECREE BELL COMPANIES DON'T WANT TO UPSET THE BALANCE EITHER SINCE THEY'LL HAVE TO FIGHT THE CONSENT DECREE IN COURT IF THE BROOKS DINGELL BILL DOESN'T REPLACE IT WE'RE SUPPORTING THE BILL AND WE WANT TO WORK WITH THE TWO CHAIRMEN TO MAKE IT BETTER UNLIKE SOME PARTIES IN THE DEBATE SAID AUBREY SARVIS A BELL ATLANTIC LOBBYIST HE SAID AMERICAN TELEPHONE AND TELEGRAPH COMPANY IS TRYING TO KILL THE BILL BUT AN A. T. AND T. SPOKESMAN DENIED THAT SAYING WE'RE GOING TO WORK TO IMPROVE IT A. T. AND T. AND OTHER LONG DISTANCE CARRIERS ARE SCHEDULED TO TESTIFY NEXT WEEK SPRINT CORPORATION YESTERDAY SAID IT WOULD PROPOSE AMENDMENTS TO THE BILL BUT WASN'T SPECIFIC IS THE WIDELY NOTED MODERATION IN HEALTH CARE COSTS AND SPENDING HERE TO STAY IT WASN'T BEFORE OVER THE PAST TWO DECADES WHENEVER THE GOVERNMENT MOVED AGAINST HEALTH CARE COSTS OR EVEN THREATENED TO ACT IN A MAJOR WAY THE GROWTH IN NATIONAL HEALTH SPENDING HAS SLOWED ONLY TO ACCELERATE SHARPLY ONCE THE THREAT OF GOVERNMENT CONTROLS WAS PASSED IN THE EARLY NINETEEN SEVENTIES WHEN PRESIDENT NIXON IMPOSED WAGE AND PRICE CONTROLS AND PROPOSED REQUIRING ALL EMPLOYERS TO PAY PART OF THEIR WORKERS' HEALTH INSURANCE PREMIUMS THE ANNUAL RISE IN INFLATION ADJUSTED HEALTH SPENDING SHRANK FROM NINE PERCENT IN NINETEEN SEVENTY TWO TO THREE PERCENT IN NINETEEN SEVENTY THREE AND TWO PERCENT IN NINETEEN SEVENTY FOUR WHEN THE CONTROLS WERE EASED AND THE PRESIDENT'S HEALTH PROPOSAL DIED IN CONGRESS THE INCREASE CLIMBED BACK TO FIVE PERCENT IN NINETEEN SEVENTY FIVE AND SOARED TO EIGHT PERCENT IN NINETEEN SEVENTY SIX THE MOST GRAPHIC EXAMPLE CAME DURING THE CARTER ADMINISTRATION WHEN THE WHITE HOUSE WAS PUSHING A BILL TO CAP HOSPITAL CHARGES AND CRAFTING A PROPOSAL TO EXTEND HEALTH COVERAGE TO ALL AMERICANS THE ANNUAL INCREASE IN INFLATION ADJUSTED NATIONAL HEALTH SPENDING SLOWED FROM FIVE PERCENT IN NINETEEN SEVENTY EIGHT TO ONE PERCENT IN BOTH NINETEEN SEVENTY NINE AND NINETEEN EIGHTY ONLY TO CATAPULT BACK UP TO FIVE PERCENT IN NINETEEN EIGHTY ONE ONCE PRESIDENT CARTER'S PROPOSALS HAD DIED AND RONALD REAGAN HAD REPLACED HIM IN THE OVAL OFFICE BY NINETEEN EIGHTY THREE INFLATION ADJUSTED HEALTH SPENDING WAS GROWING AT SEVEN PERCENT A YEAR THE HEALTH SPENDING STATISTICS WERE COMPILED RECENTLY BY KENNETH THORPE THE TOP ECONOMIST AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THE CLINTON ADMINISTRATION IS CURRENTLY ENGAGED IN AN ALL OUT EFFORT TO KEEP PEOPLE FROM BEING LULLED BY A RECENT SPATE OF GOOD NEWS ON THE HEALTH COST FRONT THE WHITE HOUSE FEARS THE ROSY OUTLOOK WILL SAP SOME OF THE MOMENTUM FOR OVERHAULING THE HEALTH CARE SYSTEM QUOTE IF WE DON'T HAVE A PLAN FOR COST CONTAINMENT WE'LL BE BACK IN THE STEW AGAIN QUOTE MR. THORPE ADMONISHED A BUSINESS AUDIENCE EARLIER THIS WEEK THERE ARE EXPERTS WHO THINK THAT THIS TIME COULD BE DIFFERENT THE HEALTH CARE MARKET HAS GONE THROUGH VAST CHANGE IN RECENT YEARS WITH LARGE EMPLOYERS INSISTING ON DISCOUNTS FROM DOCTORS AND HOSPITALS A HUGE INCREASE IN THE USE OF HEALTH MAINTENANCE ORGANIZATIONS AND OTHER MANAGED CARE NETWORKS AND A RECENT SPATE OF MERGERS AMONG HOSPITALS AND OTHER HEALTH CARE PROVIDERS THE RECENT NEWS ON HEALTH COSTS HAS BEEN BRIGHT IN NINETEEN NINETY THREE MEDICAL COSTS ROSE FIVE POINT FOUR PERCENT THE SMALLEST ANNUAL INCREASE SINCE NINETEEN SEVENTY THREE THE LABOR DEPARTMENT SAYS AND AFTER COMPLAINING OF BEING STIFLED BY RISING EMPLOYEE HEALTH COSTS BUSINESSES HAVE RECENTLY REPORTED A MODERATION IN MEDICAL EXPENSES SOME ECONOMISTS SUCH AS UWE REINHARDT OF PRINCETON CITE THE HILLARY FACTOR REFERRING TO HILLARY RODHAM CLINTON WHO IS LEADING THE ADMINISTRATION'S HEALTH CARE REFORM EFFORTS DRUG COMPANIES FOR EXAMPLE FEARING THE PROSPECT OF GOVERNMENT PRICE CONTROLS HAVE SAID THEY WILL HOLD DOWN PRICES VOLUNTARILY AND SO FAR THIS YEAR THEY HAVE KEPT THEIR WORD BUT MARK PAULY CHAIRMAN OF THE HEALTH SYSTEMS DEPARTMENT AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL SAYS HE BELIEVES PART OF THE CURRENT MODERATION SIMPLY REFLECTS A SLOWING OF THE OVERALL INFLATION RATE FOR SOME OF IT WE SHOULDN'T BE LOOKING FOR ANY CAUSE OTHER THAN THE FEDERAL RESERVE AND MACROECONOMIC POLICY HE SAYS IF CONGRESS FAILS TO PASS A MAJOR HEALTH CARE COST CONTROL BILL MR. PAULY PREDICTS THAT HEALTH CARE COSTS MAY REACCELERATE A BIT BUT HE SAYS CITING THE CHANGES IN THE INDUSTRY THE LONG TERM TREND IS PROBABLY FOR SMALLER INCREASES NEVERTHELESS SUSPICION OF THE INDUSTRY WILL PERVADE THE POLITICAL DEBATE ON CAPITOL HILL THIS TIME AROUND HOUSE MAJORITY LEADER RICHARD GEPHARDT A SUPPORTER OF THE CLINTON HEALTH PLAN OPPOSED PRESIDENT CARTER IN THE NINETEEN SEVENTIES FIGHT OVER HEALTH COSTS AND OFFERS HIS EXPERIENCE NOW AS A LESSON TO THOSE WHO BELIEVE THAT THE PROBLEM WILL SOLVE ITSELF THIS INDUSTRY SAID THEN IT COULD CONTROL COSTS VOLUNTARILY AND COSTS DID SLOW DOWN THE MISSOURI DEMOCRAT SAYS BUT THE MINUTE CONGRESS VOTED TO MAKE THE PROPOSED CONTROLS VOLUNTARY HE SAYS COSTS ESCALATED DAVID ROGERS AND MARY AGNES CAREY CONTRIBUTED TO THIS ARTICLE GERMANY IS SET TO PRIVATIZE PART OF ITS NATIONAL PHONE COMPANY CREATING A GIANT TO RIVAL THE LIKES OF BRITISH TELECOMMUNICATIONS P. L. C. OF THE UNITED KINGDOM AND U. S. BASED M. C. I. COMMUNICATIONS CORPORATION AN ACCORD REACHED LATE MONDAY BETWEEN GERMANY'S RULING COALITION AND THE MAIN OPPOSITION PARTIES ENDED MONTHS OF POLITICAL WRANGLING OVER THE FUTURE OF DEUTSCHE BUNDESPOST TELEKOM ONE OF THE COUNTRY'S BIGGEST AND MOST BUREAUCRATIC ENTERPRISES IT PAVES THE WAY FOR A CONSTITUTIONAL CHANGE ALLOWING THE SALE OF SHARES TO INVESTORS AS EARLY AS NINETEEN NINETY SIX AND THE OPENING OF VOICE SERVICES IN GERMANY TO COMPETITION BY THE BEGINNING OF NINETEEN NINETY EIGHT THE COMPANY ONE OF THE MOST PROMINENT SYMBOLS OF GERMANY'S TECHNOLOGICAL DECLINE HAS BEEN PUSHING FOR PRIVATIZATION AS A WAY TO MODERNIZE AND IMPROVE SERVICES RAISING CAPITAL ON WORLD STOCK MARKETS COULD HELP TELEKOM REBUILD EASTERN GERMANY'S DECREPIT PHONE SYSTEM AND REDUCE CHARGES FOR CALLS NUMEROUS STUDIES HAVE SHOWN THAT GERMAN PHONE SERVICE IS BOTH MORE COSTLY AND LESS ADVANCED THAN THAT OF MANY OF THE COUNTRY'S LEADING COMPETITORS QUOTE TELEKOM FREED FROM POLITICAL INTERFERENCE AND FORCED TO COMPETE COULD BE A MAJOR GLOBAL FORCE QUOTE SAID A TELECOMMUNICATIONS SPECIALIST AT THE EUROPEAN COMMISSION IN BRUSSELS THIS IS NOT THE IMAGE THAT IT HAS AT PRESENT HOWEVER ALTHOUGH TELEKOM EARNED SIX POINT FIVE BILLION MARKS THREE POINT SEVEN ONE BILLION DOLLARS LAST YEAR ON SALES OF FIFTY FOUR BILLION MARKS PROFIT HAS BEEN EATEN AWAY BY GERMANY'S MONEY LOSING POSTAL SERVICE WHICH IS PART OF TELEKOM'S MONOPOLY MEANWHILE THE EXPENSE OF REBUILDING EASTERN GERMANY'S PHONE SYSTEM HAS PUSHED DEBT TO MORE THAN ONE HUNDRED BILLION MARKS ANALYSTS SAY TELEKOM COULD RAISE AS MUCH AS FIFTEEN BILLION MARKS THROUGH PRIVATIZATION PUTTING ITS TOTAL MARKET VALUE BETWEEN SIXTY BILLION MARKS AND EIGHTY BILLION MARKS THAT WOULD MAKE IT THE LARGEST LISTED COMPANY IN GERMANY AND PLACE IT AMONG EUROPE'S FIVE LARGEST A DISPUTE INSIDE THE RULING COALITION ABOUT THE TERMS OF THE PRIVATIZATION BILL THREATENED TO THROW IT OFF COURSE BUT THE FREE DEMOCRATS THE COALITION'S JUNIOR PARTNER AGREED TO DROP DEMANDS TO SELL OFF THE ENTIRE MONOPOLY WHICH INCLUDES NOT ONLY TELEPHONE VOICE SERVICES AND POSTAL SERVICES BUT ALSO THE TELEPHONE LINE NETWORK ITSELF IN EXCHANGE THE FREE DEMOCRATS WON AN AGREEMENT THAT WILL ALLOW TELEKOM TO SELL SHARES IN ITS VOICE SERVICES AS EARLY AS NINETEEN NINETY SIX TWO YEARS EARLIER THAN ORIGINALLY PLANNED THE GERMAN GOVERNMENT WILL HOLD A MAJORITY OF THE NEW COMPANY'S SHARES FOR FIVE YEARS AFTER WHICH IT MAY BECOME TOTALLY CONTROLLED BY THE PRIVATE SECTOR IT IS STILL UNDECIDED WHEN OR IF THE PHONE NETWORK OR MAIL SERVICES WILL BE PRIVATIZED OR OPENED TO COMPETITION THE BILL STILL MUST GO THROUGH THE FULL PARLIAMENTARY PROCESS BUT PARTY REPRESENTATIVES SAID THEY DON'T EXPECT MAJOR PROBLEMS A FIRST READING OF THE BILL IS SCHEDULED FOR NEXT WEEK FORD MOTOR COMPANY IS EXPECTED TO UNVEIL NEXT WEEK A BIG PUSH INTO LEASING USED VEHICLES WHICH COULD MARK ANOTHER SIGNIFICANT CHANGE IN THE WAY AMERICANS BUY CARS FORD'S AGGRESSIVE LEASE PROMOTIONS HAVE GIVEN IT FIVE OF THE TEN BEST SELLING VEHICLES IN AMERICA AND WERE A CRUCIAL FACTOR IN ITS NINETEEN NINETY TWO DRIVE TO MAKE THE TAURUS THE TOP SELLING U. S. CAR NOW FORD IS EXPECTED TO EXPAND ITS LEASING EFFORTS INTO THE HUGE USED CAR ARENA ACCORDING TO FORD DEALERS WHO HAVE BEEN TOLD OF THE INITIATIVE COMPANY OFFICIALS DECLINED TO COMMENT IF THE PROGRAM CATCHES ON AND INDUSTRY ANALYSTS FORD DEALERS AND SOME COMPETITORS THINK IT MAY SOME FORD CUSTOMERS MAY NEVER BUY ANOTHER CAR OR TRUCK AGAIN THEY WOULD JUST LEASE THEM QUOTE MAYBE FORD WILL ALWAYS OWN THE VEHICLE QUOTE SAYS CHRISTOPHER CEDERGREN AN INDUSTRY CONSULTANT FOR AUTOPACIFIC INCORPORATED BASED IN SANTA ANA CALIFORNIA THEY WILL LEASE IT SIX TIMES AND THEN SEND IT TO THE SCRAP HEAP SOME OTHER AUTO MAKERS PRINCIPALLY IN THE LUXURY END OF THE BUSINESS HAVE EXPERIMENTED WITH USED CAR LEASE PROGRAMS BUT FORD'S WOULD BE THE FIRST MAJOR PROGRAM BY A HIGH VOLUME CAR MAKER GENERAL MOTORS CORPORATION'S FINANCE ARM ANNOUNCED A USED CAR LEASE PROGRAM LAST SUMMER BUT A SPOKESWOMAN ACKNOWLEDGES THAT IT HASN'T BEEN MARKETED EXTENSIVELY SHE DECLINES TO DISCLOSE HOW MANY USED CARS HAVE BEEN LEASED UNDER IT I DON'T KNOW IF USED CAR LEASING WILL GO ANYWHERE BUT IT SOUNDS AS IF IT SHOULD WORK SAYS PETE GEROSA THE GENERAL SALES AND SERVICE MANAGER OF G. M.'S CADILLAC DIVISION FOR FORD THE USED CAR LEASE PROGRAM COULD HELP ANSWER A QUESTION THAT THE COMPANY'S DEALERS HAVE BEGUN ASKING WHAT TO DO WITH THE MORE THAN TWO HUNDRED FIFTY THOUSAND TWO YEAR OLD LEASED FORDS THAT ARE SCHEDULED TO COME BACK INTO THEIR HANDS THIS YEAR THAT FIGURE IS EXPECTED TO RISE TO MORE THAN THREE HUNDRED THOUSAND NEXT YEAR ACCORDING TO C. N. W. MARKETING SLASH RESEARCH A BANDON OREGON CONCERN THAT TRACKS LEASING TRENDS ART SPINELLA VICE PRESIDENT OF C. N. W. MARKETING SLASH RESEARCH SAYS THAT IN A FEW YEARS LEASING COULD ACCOUNT FOR NEARLY HALF OF ALL FORD'S VEHICLE TRANSACTIONS IN RECENT YEARS LEASING HAS RISEN IN POPULARITY TO GRAB A SIGNIFICANT SHARE OF THE INDUSTRY'S SALES ACTIVITY LAST YEAR LEASING ACCOUNTED FOR TWENTY PERCENT OF ALL LIGHT VEHICLE SALES ACCORDING TO C. N. W. MARKETING SLASH RESEARCH FORD ACCOUNTED FOR NEARLY THIRTY PERCENT OF THE LEASING ACTIVITY TOPS IN THE INDUSTRY GROWTH WAS ALSO AGGRESSIVE IN NINETEEN NINETY THREE WITH FORD'S LEASING ACTIVITY JUMPING THIRTY TWO POINT THREE PERCENT WHILE THE INDUSTRY'S ROSE THIRTY FIVE POINT TWO PERCENT FORD DEALERS SAY CURRENT STRONG DEMAND FOR USED AUTOMOBILES ENSURES THAT A MARKET EXISTS FOR CARS AND TRUCKS COMING OFF LEASES OFFERED BY THE COMPANY THE RE LEASED FORDS SHOULD BE ATTRACTIVE THEY ADD BECAUSE NEW CARS ARE GROWING INCREASINGLY EXPENSIVE AND RE LEASED FORDS SHOULD CARRY LOWER PAYMENTS THAN WHAT ONE MIGHT TYPICALLY PAY UNDER AN INSTALLMENT LOAN INDUSTRY REACTION TO FORD'S PLAN ISN'T EXPECTED TO BE SWIFT FORD HOLDS A FINANCING ADVANTAGE OVER G. M. AND CHRYSLER CORPORATION BECAUSE IT HAS A HIGHER CREDIT RATING AND CAN THEREFORE BE MORE AGGRESSIVE IN LEASING CHRYSLER IS A SMALLER PLAYER IN NEW CAR LEASING AND DOESN'T OFFER A USED CAR LEASE FORD'S EXPANDING STAKE IN LEASING DOES POSE SOME RISKS THE AUTO MAKER IS ESSENTIALLY GAMBLING THAT IT CAN ACCURATELY PREDICT THE RESALE VALUE OF ITS USED VEHICLES A FACTOR THAT PLAYS A DIRECT ROLE IN DETERMINING THE LEASE PAYMENTS ON USED AND NEW CARS INDUSTRY ANALYSTS AREN'T SURE WHAT IMPACT IF ANY MISCALCULATIONS COULD HAVE ON FORD'S BALANCE SHEETS OR ON THE PRICES OF ITS NEW VEHICLES ON THE OTHER HAND THE BENEFITS MAY OUTWEIGH THE RISKS CUSTOMERS ARE LIKELY TO CHANGE CARS MORE FREQUENTLY BECAUSE OF FORD'S PREFERENCE FOR TWO YEAR DEALS DEALERS ARE LIKELY TO SEE REPEAT BUSINESS SOAR AS CONSUMERS TURN IN VEHICLES AT THE END OF THEIR LEASE TERMS AND FORD IS LIKELY TO ESTABLISH A STRONG PRESENCE IN THE USED VEHICLE MARKET WHERE IT HAS TYPICALLY LOST SALES TO INDIVIDUALS AND INDEPENDENT DEALERS THE INITIATIVE ALSO HELPS FORD TO TACKLE THE AFFORDABILITY QUESTION AS NEW CAR PRICES KEEP RISING AUTO MAKERS IN THE PAST HAVE HAD TO RESORT TO REBATES OR VALUE PRICED SPECIALS FORD HOWEVER IS BETTING THAT LEASING WILL DO A BETTER JOB OF APPEALING TO THE MONTHLY PAYMENT MIND SET OF MOST CAR BUYERS YIELDS ON TAXABLE MONEY MARKET FUNDS WERE LITTLE CHANGED IN THE LATEST WEEK I. B. C. SLASH DONOGHUE'S AVERAGE SEVEN DAY COMPOUND YIELD ON TAXABLE FUNDS REMAINED AT TWO POINT SEVEN TWO PERCENT IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASSACHUSETTS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVEN DAY SIMPLE YIELD ON TAXABLE FUNDS SLIPPED TO TWO POINT SIX EIGHT PERCENT FROM TWO POINT SIX NINE PERCENT WHILE THE THIRTY DAY SIMPLE YIELD EASED TO TWO POINT SEVEN ONE PERCENT FROM TWO POINT SEVEN TWO PERCENT THE THIRTY DAY COMPOUND YIELD EDGED DOWN TO TWO POINT SEVEN FOUR PERCENT FROM TWO POINT SEVEN FIVE PERCENT ASSETS OF SIX HUNDRED THIRTY SEVEN TAXABLE FUNDS ROSE BY FOUR POINT THREE FOUR BILLION DOLLARS TO FOUR HUNDRED NINETY EIGHT POINT TWO SIX BILLION DOLLARS THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ADDED SIX POINT OH SIX BILLION DOLLARS TO TAXABLE ASSETS WHILE INDIVIDUAL INVESTORS WITHDREW ONE POINT SEVEN THREE BILLION DOLLARS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORT TERM CORPORATE I. O. U.S AND TREASURY BILLS LENGTHENED BY ONE DAY TO SIXTY DAYS FOR TAX EXEMPT FUNDS THE AVERAGE SEVEN DAY COMPOUND YIELD ROSE TO ONE POINT SEVEN SEVEN PERCENT FROM ONE POINT SIX EIGHT PERCENT IN THE LATEST WEEK ACCORDING TO MONEY FUND REPORT THE LATEST YIELD IS EQUIVALENT TO A TAXABLE TWO POINT SEVEN SEVEN PERCENT FOR SOMEONE PAYING THIRTY SIX PERCENT IN TAXES AND TO TWO POINT NINE THREE PERCENT FOR THOSE WHO PAY THIRTY NINE POINT SIX PERCENT ASSETS OF THREE HUNDRED FORTY TAX EXEMPT FUNDS FELL BY ONE POINT TWO THREE BILLION DOLLARS TO ONE HUNDRED TEN POINT FOUR FIVE BILLION DOLLARS THE NEWSLETTER SAID THE TAX FREE FUNDS' AVERAGE PORTFOLIO MATURITY REMAINED AT FIFTY EIGHT DAYS MONEY FUND REPORT IS PUBLISHED BY I. B. C. SLASH DONOGHUE INCORPORATED A SUBSIDIARY OF I. B. C. U. S. A. PUBLICATIONS INCORPORATED DOMINO'S PIZZA INTERNATIONAL INCORPORATED SIGNED AN AGREEMENT GIVING FRANCHISE RIGHTS TO DOMINO'S PIZZA GROUP LIMITED OF THE UNITED KINGDOM TO OVERSEE THE SEVENTY FIVE U. K. STORES AND OPEN AT LEAST TWO HUNDRED STORES IN FOUR YEARS IN THE U. K. DOMINO'S SAID THE U. K. STORES HAD SALES OF MORE THAN TWENTY SIX MILLION DOLLARS IN NINETEEN NINETY THREE DOMINO'S PIZZA GROUP WILL OVERSEE TRAINING MARKETING AND DEVELOPMENT SUPPORT TO THE EXISTING THIRTY TWO FRANCHISE OWNERS DOMINO'S PIZZA INTERNATIONAL HAS MORE THAN FIVE THOUSAND TWO HUNDRED STORES THROUGHOUT THE U. S. AND IN THIRTY FIVE INTERNATIONAL MARKETS BANK NEGARA MALAYSIA'S CENTRAL BANK HAS A REPUTATION THAT'S UNIQUE AMONG THE WORLD'S MONETARY AUTHORITIES WHILE IT HAS THE POWERS AND RESPONSIBILITIES OF A FEDERAL RESERVE IT'S ALSO KNOWN FOR THE SWASHBUCKLING SPECULATIVE HABITS OF A GEORGE SOROS AFTER YEARS OF ROILING OTHER PEOPLES' CURRENCIES AND FINANCIAL MARKETS FOR ITS OWN PROFIT THE BANK IS GETTING A TASTE OF ITS OWN MEDICINE AS IT BATTLES SOME OF THE WORLD'S BIGGEST SPECULATORS FOR CONTROL OF ITS OWN CURRENCY THE MALAYSIAN DOLLAR INTERNATIONAL HEDGE FUNDS BANKS MUTUAL FUNDS AND OTHER HIGH ROLLERS HAVE PLACED BILLIONS OF U. S. DOLLARS OF BETS ON THE MALAYSIAN DOLLAR IN RECENT WEEKS EXPECTING THE CURRENCY TO REBOUND AS MUCH AS TWENTY PERCENT BY SUMMER FIDELITY INVESTMENTS AND G. T. CAPITAL MANAGEMENT INCORPORATED ARE PARTICIPATING IN THE WAGER AS ARE CURRENCY SPECIALISTS SUCH AS EZRA ZASK ASSOCIATES INCORPORATED BANK NEGARA IS AGGRESSIVELY COUNTERING THE SPECULATORS' BETS AS IT FIGHTS TO KEEP CONTROL OF ITS MONETARY POLICY AND FORESTALL THE HARM THAT AN APPRECIATING MALAYSIAN DOLLAR WOULD DO TO EXPORTS LARGELY THROUGH CAGEY EXERCISE OF ITS CENTRAL BANK POWERS BANK NEGARA SEEMS TO HAVE MUSCLED ITS WAY TO VICTORY SO FAR QUOTE THERE'S NO QUESTION THAT NEGARA IS WINNING QUOTE CONCEDES THE HEAD OF PROPRIETARY TRADING AT A BIG U. S. BANK HE AND OTHER TRADERS ESTIMATE THAT SPECULATORS HAVE ALREADY LOST SEVERAL HUNDRED MILLION U. S. DOLLARS IN THE SHOWDOWN SINCE LATE DECEMBER BANK NEGARA OFFICIALS MEANWHILE WOULDN'T COMMENT A CRITICAL WEAPON IN THE BANK'S ARSENAL HAS BEEN ITS ABILITY TO ABRUPTLY REWRITE MALAYSIA'S BANKING RULES IN WAYS THAT LEAVE FOREIGN SPECULATORS HIGH AND DRY THROUGH MOVES THAT EFFECTIVELY CURBED LOCAL BANKS' ABILITY TO TRADE WITH THE SPECULATORS AND TO PAY INTEREST ON MALAYSIAN DOLLAR DEPOSITS TO FOREIGN INSTITUTIONS THE CENTRAL BANK HAS PINIONED MANY FOREIGN INVESTORS IN MONEY LOSING POSITIONS WHENEVER YOU HAVE A SMALL CURRENCY IN A CONTROLLED MARKET WHERE YOU HOLD MOST OF THE TRUMP CARDS YOU CAN LOAD THE DICE AND CHANGE THE HOUSE RULES AS MUCH AS YOU LIKE SAYS A FORMER EUROPEAN CENTRAL BANKER YOU CAN MAKE THE SPECULATORS LOOK LIKE FOOLS BANK NEGARA CUT A SWATH THROUGH CURRENCY MARKETS IN THE NINETEEN EIGHTIES THROUGH WHAT TRADERS CALLED ITS LIGHTNING RAIDS THE CENTRAL BANK WOULD ROUTINELY ROIL MARKETS BY COMING IN LATE IN THE AFTERNOON WITH TRADES AS LARGE AS TWO HUNDRED FIFTY MILLION DOLLARS AT A TIME AND BECAUSE CURRENCY MARKETS WERE SMALLER AND EASIER TO MANIPULATE IN THOSE DAYS SUCH BETS WERE ENOUGH TO MOVE THE PRICE OF SOME CURRENCIES ONE PERCENT IN A DAY CERTAINLY BANK NEGARA KNOWS HOW A SPECULATOR'S MIND WORKS AND THEREFORE KNOWS HOW TO TAKE THE SPECULATORS OUT SAYS RONALD LAYARD LIESCHING DIRECTOR OF RESEARCH AT PARETO PARTNERS A LONDON INTERNATIONAL FUND MANAGER THE LATEST CLASH HAS BECOME SO FEROCIOUS AND THE STAKES HAVE RISEN SO HIGH THAT EVEN THE BIGGEST MOST SECRETIVE HEDGE FUND MANAGERS HAVE BEGUN COLD CALLING JOURNALISTS IN HOPES OF EMBARRASSING THE MALAYSIAN CENTRAL BANK INTO BACKING OFF AMONG OTHER THINGS THEY ACCUSE BANK NEGARA OF MANIPULATING EXCHANGE RATES TO HIDE ITS OWN TRADING LOSSES AND OF SABOTAGING MALAYSIA'S ECONOMY IN THE PROCESS THE CURRENCY BRINKMANSHIP HAS HAD DIRE CONSEQUENCES FOR MALAYSIA'S FINANCIAL MARKETS AS THE MALAYSIAN DOLLAR SLID EIGHT PERCENT IN THE PAST MONTH STOCK PRICES IN KUALA LUMPUR TUMBLED NEARLY TWENTY TWO PERCENT WIPING OUT NEARLY A THIRD OF THE VALUE OF FOREIGNERS' STOCKHOLDINGS AND REVERSING A LARGE PART OF THE STOCK MARKET'S TORRID NINETEEN NINETY THREE GAINS THERE WILL COME A TIME WHEN THE COUNTRY NEEDS FRIENDS NEEDS TO ATTRACT FOREIGN INVESTMENT AND WILL HAVE A HARDER TIME CONVINCING INVESTORS THAT IT'S A LEVEL PLAYING FIELD SAYS EZRA ZASK WHO RUNS THE NORFOLK CONNECTICUT CURRENCY TRADING FIRM OF THE SAME NAME IN THE LONG RUN THE BOOMING MALAYSIAN ECONOMY NOT SPECULATORS IS LIKELY TO UNDO BANK NEGARA'S CURRENCY GAMBLE THE ECONOMY HAS EXPANDED AT AN AVERAGE EIGHT POINT SIX PERCENT ANNUAL CLIP IN THE LAST SIX YEARS THE NATION BOASTS A STABLE GOVERNMENT THAT PROMOTES ECONOMIC GROWTH A LARGE TRADE SURPLUS AND AN EXPORT MARKET THAT IS HIGHLY COMPETITIVE EVEN BY ASIAN EMERGING MARKET STANDARDS QUOTE IT IS OUR VIEW THAT THE FUNDAMENTALS WILL STILL PREVAIL AND THAT OVER TIME THE CURRENCY WILL APPRECIATE RELATIVE TO THE U. S. DOLLAR QUOTE SAYS THOMAS J. STEFFANCI FIDELITY'S HEAD OF FIXED INCOME IN BOSTON ON THE STRENGTH OF SUCH VIEWS HUGE AMOUNTS OF MONEY HAVE POURED INTO MALAYSIA FROM ABROAD IN RECENT YEARS LATE LAST MONTH THOSE CAPITAL INFLOWS TURNED INTO A TORRENT AFTER BANK NEGARA SUDDENLY DROVE THE MALAYSIAN DOLLAR DOWN FIVE POINT SIX PERCENT OVER A SIX DAY PERIOD BEGINNING CHRISTMAS EVE THE CENTRAL BANK HAD EXECUTED A SIMILAR MANEUVER AT THE END OF NINETEEN NINETY TWO REPORTEDLY TO MASK CURRENCY LOSSES AND TO INCREASE THE VALUE OF ITS FOREIGN EXCHANGE RESERVES IN LOCAL CURRENCY TERMS BANK NEGARA DID REPORT LOSING THE EQUIVALENT OF ABOUT THREE POINT SIX BILLION DOLLARS DURING NINETEEN NINETY TWO BUT SOME WESTERN CENTRAL BANKERS AND TRADERS SUSPECT THAT THOSE LOSSES MAY HAVE BEEN AS HIGH AS SIX BILLION DOLLARS AND THAT BANK NEGARA HID THEIR FULL EXTENT BY ROLLING THEM OVER INTO NINETEEN NINETY THREE INDEED LAST FRIDAY MALAYSIA'S FINANCE MINISTER DATUK ANWAR IBRAHIM ACKNOWLEDGED THAT THE CENTRAL BANK WOULD REPORT ADDITIONAL FOREIGN EXCHANGE LOSSES FOR NINETEEN NINETY THREE BUT DIDN'T DISCLOSE THE AMOUNT AFTER THE MALAYSIAN DOLLAR'S YEAR END TUMBLE IN NINETEEN NINETY TWO THE CURRENCY HAD BOUNCED RIGHT BACK EXPECTING A SIMILAR REBOUND THIS TIME AROUND GLOBAL SPECULATORS AND INVESTORS STARTED SNAPPING UP MALAYSIAN DOLLARS AT THE TURN OF THE YEAR TO PARTICIPATE IN THE RALLY THE UPSHOT WAS THAT WHAT STARTED ORIGINALLY AS A SIMPLE YEAR END WINDOW DRESSING EXERCISE SOON DEGENERATED INTO A SHOW OF STRENGTH BETWEEN THE CENTRAL BANK AND FOREIGN PORTFOLIO INVESTORS ACCORDING TO A REPORT FROM LEHMAN BROTHERS INCORPORATED TO CLIENTS THIS WEEK AT FIRST THE RECENT BULLISH PLAYS ON THE MALAYSIAN DOLLAR LOOKED LIKE A SELF FULFILLING PROPHECY IN THE FIRST FEW DAYS OF NINETEEN NINETY FOUR THE FRENZY OF SPECULATIVE BUYING CAUSED THE CURRENCY TO RECOVER ROUGHLY HALF THE GROUND IT HAD LOST AGAINST THE U. S. DOLLAR BETWEEN CHRISTMAS AND NEW YEAR'S BUT IN THE FIRST AND SECOND WEEKS OF JANUARY BANK NEGARA BLIND SIDED THESE INVESTORS BY CHANGING MALAYSIA'S BANKING RULES AND BY DRIVING DOMESTIC INTEREST RATES THROUGH THE FLOOR TRADERS SAY THAT AT ONE POINT MALAYSIAN INTEREST RATES FOR FOREIGNERS WERE ACTUALLY NEGATIVE TO GET RID OF MALAYSIAN DOLLARS YOU HAD TO PAY SOMEONE TO TAKE THEM SAYS A TRADER AT A U. S. BANK SUCH ROCK BOTTOM RATES MEANT THAT HIGHLY LEVERAGED SPECULATORS WHO HAD IN EFFECT BORROWED OTHER CURRENCIES TO BUY MALAYSIAN DOLLARS STARTED LOSING MONEY ON THEIR POSITIONS SINCE THEY WERE PAYING MORE FOR THEIR BORROWINGS THAN THEY WERE GETTING BACK ON THEIR INVESTMENTS HELPING BANK NEGARA TO TURN THE TABLES WERE RULE CHANGES THAT FORCED MALAYSIAN BANKS TO INCREASE THEIR INTEREST FREE DEPOSITS AT THE CENTRAL BANK AND PENALIZED THEM FOR HOLDING FOREIGN FUNDS THAT WEREN'T TRADE RELATED OR INTENDED FOR INVESTMENT IN PLANT EQUIPMENT OR STOCKS WHILE BARING SECURITIES LIMITED TOLD CLIENTS THAT THE MEASURES WERE LONG OVERDUE AND NECESSARY TO CURB THE INFLATIONARY IMPACT OF THE HUGE CAPITAL INFLOWS FROM ABROAD IT ADDED THAT THEY ALSO SEEM DESIGNED TO PUNISH THE SPECULATORS LIKE A PRIZE FIGHTER WITH AN OPPONENT ON THE ROPES BANK NEGARA MOVED TO PUMMEL SPECULATORS AGAIN SATURDAY IT FORBADE LOCAL BANKS FROM SELLING SHORT TERM FIXED INCOME INVESTMENTS TO FOREIGNERS AND REQUIRED DOMESTIC BANKS TO PARK DEPOSITS FROM FOREIGN INSTITUTIONS IN NON INTEREST BEARING ACCOUNTS AT THE CENTRAL BANK THE MOVE ALSO SENT THE MALAYSIAN DOLLAR ONE PERCENT TO ONE POINT FIVE PERCENT LOWER AGAINST THE U. S. DOLLAR FURTHER ERODING THE VALUE OF FOREIGNERS' MALAYSIAN HOLDINGS A SIGNIFICANT NUMBER OF PEOPLE ARE TRYING TO GET OUT AT THE SAME TIME SAYS MR. ZASK BUT OTHER INVESTORS ARE STAYING PUT MR. STEFFANCI SAYS FIDELITY'S GLOBAL BOND FUND AND SHORT TERM WORLD INCOME FUND CONTINUE TO HOLD MALAYSIAN DOLLAR DENOMINATED SECURITIES CHRISTIAN WIGNALL CHIEF INVESTMENT OFFICER AT G. T. CAPITAL IN SAN FRANCISCO SAYS HIS FIRM REGARDS THE WEAKER MALAYSIAN DOLLAR AS A BUYING OPPORTUNITY MEANWHILE BANKERS SAY THAT BANK NEGARA'S OWN TRADING LOSSES ARE FORCING IT TO REFORM ITS GUN SLINGING WAYS LAST WEEK THE MALAYSIAN FINANCE MINISTER DISCLOSED THAT IN EARLY NINETEEN NINETY THREE BANK NEGARA WAS TOLD TO STOP ITS QUOTE EXTRA TRADING ACTIVITY QUOTE TRADERS SAY THAT SINCE THEN THE BANK HAS PULLED BACK ADOPTED A LOWER PROFILE AND SHAKEN UP ITS TRADING ROOM PERSONNEL THEY ARE A LOT MORE DISCREET THAN THEY USED TO BE SAYS ONE LONDON TRADER HE ADDED THEY ARE GETTING MORE SOPHISTICATED THE VALUE OF CONSTRUCTION CONTRACTS CONTINUED TO WANE FOR THE SECOND CONSECUTIVE MONTH SLUMPING FOUR PERCENT IN DECEMBER AN F. W. DODGE SURVEY REPORTED DESPITE THE RECENT SLUMP TOTAL CONSTRUCTION FOR NINETEEN NINETY THREE ROSE BY FIVE PERCENT TO TWO HUNDRED SIXTY FOUR BILLION DOLLARS THIS COMES ON TOP OF NINETEEN NINETY TWO'S NINE PERCENT GAIN FROM NINETEEN NINETY ONE QUOTE THE SUBDUED QUALITY OF THE CURRENT REBOUND CERTAINLY FITS IN WELL WITH THE SLOW GROWTH NINETEEN NINETIES QUOTE SAID ROBERT A. MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS AND CHIEF ECONOMIST FOR F. W. DODGE THE FORECASTING UNIT OF MCGRAW HILL INCORPORATED HOPEFULLY THE SMALLER INITIAL GAINS WE'VE WITNESSED SO FAR WILL ALSO TRANSLATE INTO AN EXTENDED RECOVERY PERIOD THE REPORT SAID THE DODGE INDEX WHICH USES NINETEEN EIGHTY SEVEN AS A BASE YEAR OF ONE HUNDRED FELL TO ONE HUNDRED TWO ON A SEASONALLY ADJUSTED BASIS DOWN FROM NOVEMBER'S REVISED READING OF ONE HUNDRED SIX IN NINETEEN NINETY THREE THE INDEX PEAKED AT ONE HUNDRED EIGHT IN OCTOBER EVEN WITH THE SLACKENING AT YEAR'S END THE GENERALLY STRONGER PERFORMANCE DURING THE SECOND HALF OF NINETEEN NINETY THREE PUT THE CONSTRUCTION RECOVERY BACK ON TRACK MR. MURRAY NOTED AFTER A LACKLUSTER FIRST HALF OF THE YEAR WHEN IT APPEARED THE UPTURN MIGHT BE IN DANGER OF STALLING OUT THE BENEFITS OF LOW MORTGAGE RATES FINALLY CAME THROUGH WITH A SURGE OF SINGLE FAMILY HOUSING WHETHER THE STRONGER PACE OF RECOVERY CAN CONTINUE INTO NINETEEN NINETY FOUR WILL DEPEND ON HOW WELL OTHER TYPES OF CONSTRUCTION CAN FOLLOW THE LEAD OF HOUSING FOR THE YEAR NONRESIDENTIAL BUILDING WAS ESSENTIALLY UNCHANGED FROM THE PREVIOUS YEAR BUT REMAINED EIGHTEEN PERCENT BELOW NINETEEN EIGHTY NINE'S MOST RECENT PEAK IN DOLLAR VOLUME INSTITUTIONAL BUILDING FELL TWO PERCENT LAST YEAR LARGELY BECAUSE OF FISCAL CONSTRAINTS ON PUBLICLY FUNDED CONSTRUCTION FOR THE SECOND CONSECUTIVE YEAR BUT THE COMMERCIAL SECTOR WAS ABLE TO PUSH FORWARD THREE PERCENT LED BY AN ELEVEN PERCENT JUMP IN STORES AND SHOPPING CENTERS OFFICE BUILDING IN NINETEEN NINETY THREE SAW ITS FIRST GAIN SINCE NINETEEN EIGHTY SEVEN RISING THREE PERCENT THE REPORT NOTED WHILE THE CURRENT LEVEL OF OFFICE CONSTRUCTION REMAINS DISMAL BY ANY MEASURE AT LEAST IT'S NO LONGER EXERTING A DOWNWARD PULL ON THE REST OF THE INDUSTRY MR. MURRAY SAID RESIDENTIAL CONSTRUCTION FOR THE YEAR ADVANCED NINE PERCENT AS SINGLE FAMILY HOUSING DURING THE SECOND HALF OF NINETEEN NINETY THREE QUOTE RE ESTABLISHED ITS ROLE AS THE RECOVERY'S LEADING EDGE QUOTE THE REPORT NOTED THE DOLLAR VALUE OF SINGLE FAMILY HOUSING IN THE FOURTH QUARTER WAS ABOUT TWENTY PERCENT ABOVE THE LEVELS REPORTED IN THE FIRST HALF REGIONALLY MOST OF NINETEEN NINETY THREE'S GAINS WERE REPORTED IN THE SOUTH CENTRAL WHICH POSTED AN ELEVEN PERCENT INCREASE AND THE SOUTH ATLANTIC WHICH CLIMBED EIGHT PERCENT THE MIDWEST MATCHED THE NATIONAL GAIN OF FIVE PERCENT WHILE THE WEST GREW A SCANT ONE PERCENT THE NORTHEAST HOWEVER REPORTED A ONE PERCENT DECLINE WANT TO KNOW WHAT THEY REALLY TALK ABOUT AT THOSE CLOSED DOOR MEETINGS AT THE ULTRASERIOUS FEDERAL RESERVE GOLD FOR ONE THING AND THE FACT THAT THE U. S. GOVERNMENT CONSIDERS THE BASEMENT OF THE FEDERAL RESERVE BANK OF NEW YORK WHERE GOLD BARS ARE STORED TO BE A FOREIGN COUNTRY THIS CAN NOW BE TOLD BECAUSE THE FED RESPONDING TO A FREEDOM OF INFORMATION REQUEST SENT THIS NEWSPAPER A HEAVILY BOWDLERIZED TRANSCRIPT OF THE DECEMBER SECOND MEETING OF ITS POLICY COMMITTEE MOST OF THE SIXTY SIX PAGES ARE LARGELY OR ENTIRELY BLANK BECAUSE THE FED ARGUES THAT MUCH OF WHAT IT DISCUSSES IS TOO SENSITIVE FOR RELEASE THAT INCLUDES ALMOST EVERYTHING SAID AT THE MEETING ABOUT THE ECONOMY JERRY JORDAN CLEVELAND FED PRESIDENT DID REPORT THAT QUOTE THE SITUATION IN MY PART OF THE COUNTRY BRIGHTENED CONSIDERABLY QUOTE SINCE THE LAST FED MEETING IT TURNED OUT HE WAS TALKING ABOUT THE WEATHER THE SUN CAME OUT VERY BRIEFLY SAID MR. JORDAN THE TRANSCRIPT ALSO RECORDS THAT AFTER THE FED'S TOP INTERNATIONAL STAFFER EDWIN TRUMAN GAVE A ROUTINE REPORT CHAIRMAN ALAN GREENSPAN ASKED INCREDULOUSLY DID I HEAR YOU CORRECTLY WHEN YOU SAID THAT THE GOLD EXPORTS IN OCTOBER APPEAR TO HAVE COME FROM THE COFFERS OF THE FEDERAL RESERVE BANK OF NEW YORK IT SEEMS THAT SOME EIGHTY CENTRAL BANKS AND OTHER INSTITUTIONS STORE GOLD BARS VALUED AT SOME ONE HUNDRED TWENTY BILLION DOLLARS IN VAULTS IN THE NEW YORK FED'S BASEMENT THE NEW YORK FED IS TREATED AS A FOREIGN COUNTRY IN CENSUS BUREAU DATA MR. TRUMAN EXPLAINED MUCH AS EMBASSIES ARE TREATED AS FOREIGN TERRITORY AT LEAST ONE OF THE CENTRAL BANKERS LAUGHED OR SO THE TRANSCRIPT RECORDS YOU MEAN A COUNTRY OWNS GOLD AND HAS IT STORED IN THE FEDERAL RESERVE BANK OF NEW YORK AND THEY SHIP IT OUT THAT'S AN EXPORT ASKED FED GOVERNOR WAYNE ANGELL WHO CONSIDERS HIMSELF SOMETHING OF AN EXPERT ON GOLD YES MR. TRUMAN EXPLAINS BUT GOVERNMENT BOOKS ALSO RECORD IT AS AN IMPORT SO IT'S BASICALLY A WASH FED GOVERNOR EDWARD KELLEY ASKED THEN NEW YORK FED PRESIDENT GERALD CORRIGAN DOES IT HAVE TO GET OUT OF YOUR VAULT AT ALL IN ORDER TO BE CONSIDERED AN IMPORT AND AN EXPORT QUOTE WELL QUOTE MR. CORRIGAN REPLIED FOR THE RECORD QUOTE I'M NOT EVEN GOING TO TRY TO ANSWER THAT QUOTE JOHN J. HENNEBERRY EIGHTY TWO A FORMER MANAGING PARTNER CHAIRMAN AND CHIEF FINANCIAL OFFICER OF BAKER WEEKS AND COMPANY A NEW YORK INVESTMENT BANKING FIRM IN LONG ISLAND N. Y. OF A HEART ATTACK SEVERAL TRENDS HAVE RECENTLY TAKEN HOLD IN THE DEVELOPMENT OF SOFTWARE THAT PROMISE TO MAKE IT EASIER AND QUICKER TO GET WORK DONE ON PERSONAL COMPUTERS FIRST MORE PROGRAMS ARE EMERGING THAT ARE NARROWLY FOCUSED ON SPECIFIC TASKS RATHER THAN ON BEING EVERYTHING TO EVERYBODY SECOND SOFTWARE COMPANIES ARE BUILDING INTO THEIR PRODUCTS A DEGREE OF AUTOMATION THAT LETS USERS PERFORM THE MOST COMMON STEPS RAPIDLY WITHOUT MASTERING ALL THE COMMANDS AND TOOLS NORMALLY NEEDED TO DO THEM THESE APPROACHES MAKE IT POSSIBLE FOR BUSINESS PEOPLE WITHOUT ARTISTIC SKILLS TO TURN OUT PROFESSIONAL LOOKING ORGANIZATION CHARTS OFFICE LAYOUTS MAPS FLOW CHARTS AND OTHER BUSINESS DOCUMENTS THE RESULT IS A CATEGORY OF SOFTWARE THAT MIGHT BE CALLED MODULAR BUSINESS GRAPHICS IN WHICH YOU BUILD GRAPHIC DOCUMENTS BY SNAPPING TOGETHER THEIR COMPONENTS LIKE KIDS DO WITH LEGOS FOR A DECADE COMPUTERS HAVE OFFERED THE ARTISTICALLY CHALLENGED THE PROMISE OF REAL DRAWING ABILITY BUT THE MACHINES HAVEN'T REALLY DELIVERED BECAUSE MOST DRAWING PROGRAMS HAVE BEEN WICKEDLY HARD TO USE FOR THOSE WITHOUT GOOD SPATIAL REASONING SURE A STRAIGHT LINE STAYED STRAIGHT BUT MAKING IT THE RIGHT LENGTH AND THICKNESS AND CONNECTING IT TO OTHER THINGS USING A MOUSE WAS TOO OFTEN A TIME CONSUMING STRUGGLE FOR THOSE WHO LIKE ME CAN'T DRAW TO SAVE THEIR LIVES AND ART SOFTWARE LIKE OTHER CATEGORIES HAS SUFFERED FROM THE ADDITION OF SO MANY FEATURES AND CONTROLS DEMANDED BY REAL COMPUTER ARTISTS THAT FIGURING OUT HOW TO USE THEM HAS GOTTEN HARDER AND HARDER SO IT'S GOOD NEWS THAT THIS NEW TYPE OF DRAWING PROGRAM HAS EMERGED OVER ABOUT A YEAR THERE ARE AROUND A HALF DOZEN ENTRIES IN THE FIELD BUT THE LEADER IS VISIO TWO POINT OH BY SHAPEWARE CORPORATION OF SEATTLE AND A KEY COMPETITOR IS SNAPGRAFX BY MICROGRAFX INCORPORATED OF RICHARDSON TEXAS VISIO COSTS AROUND ONE HUNDRED TWENTY FIVE DOLLARS AT DISCOUNT AND SNAPGRAFX AROUND NINETY SIX DOLLARS BOTH REQUIRE COMPUTERS RUNNING MICROSOFT'S WINDOWS SOFTWARE VISIO PRESENTS THE USER WITH SIDE BY SIDE WINDOWS ON THE SCREEN AT THE RIGHT IS A LARGE BLANK SHEET OF ELECTRONIC GRAPH PAPER ON WHICH YOU CREATE A DRAWING TO ITS LEFT IS A SLIMMER QUOTE STENCIL QUOTE WINDOW CONTAINING VISIO'S KEY ELEMENT AN ARRAY OF PREDRAWN OBJECTS CALLED QUOTE SHAPES QUOTE YOU USE TO PUT TOGETHER A DRAWING THE PROGRAM COMES WITH TWENTY STENCILS ARRANGED AROUND COMMON THEMES FOR INSTANCE THERE ARE STENCILS WITH ALL THE SHAPES YOU NEED TO CREATE A FLOW CHART OR AN ORGANIZATION CHART OR A SPACE AND FURNITURE PLAN OTHERS HAVE SHAPES DESIGNED TO FIT INTO ROAD MAPS OR BAR AND PIE CHARTS ENGINEERING DIAGRAMS AND MAPS OF THE WORLD THE U. S. AND EUROPE THE COMPANY SELLS EXTRA SETS OF STENCILS AND SHAPES INCLUDING COLLECTIONS FOR HOME DESIGN KIDS LANDSCAPING AND MARKETING FOR SEVENTY NINE DOLLARS THE PROGRAM WORKS ON THE DRAG AND DROP PRINCIPLE TO CONSTRUCT A DRAWING IN THE RIGHT HAND WINDOW YOU MERELY CLICK ON ONE OF THE STOCK SHAPES IN THE STENCIL WINDOW AND HOLDING THE MOUSE BUTTON DOWN DRAG ITS IMAGE ONTO THE ELECTRONIC PAPER WHEN YOU RELEASE THE MOUSE BUTTON THE PROGRAM DROPS THE SHAPE INTO THE DRAWING THERE'S NEVER A NEED TO SKETCH ANYTHING EVEN COOLER IS THE FACT THAT VISIO'S SHAPES ARE INTELLIGENT IF YOU STRETCH OR ROTATE THEM THEY CHANGE SIZE AND ORIENTATION WITHOUT BECOMING DISTORTED IF YOU CONNECT THEM WITH ARROWS OR LINES AND THEN MOVE ONE OF THE CONNECTED ELEMENTS THE OTHERS REMAIN LINKED THE LINES AND ARROWS BEHAVE LIKE RUBBER BANDS AND YOU CAN TYPE ALL SORTS OF TEXT INSIDE THEM WITHOUT WORRYING ABOUT RUNNING OVER THE BORDERS ABOUT THE ONLY REAL DOWNSIDE TO VISIO IS THAT WHILE THE PROGRAM IS BASED ON THESE SIMPLE PRINCIPLES IT IS PACKED WITH A LOT OF TOOLS AND FEATURES FOR MODIFYING AND ARRANGING THE SHAPES AND THUS CAN BE CONFUSING TO NOVICES IN MY VIEW VISIO NEEDS A COLLECTION OF WIZARDS MICROSOFT'S TERM FOR AUTOMATED ROUTINES THAT CREATE BASIC DOCUMENTS OF VARIOUS TYPES WITH A SINGLE MOUSE CLICK THESE COULD LATER BE MODIFIED BY THE USER PERHAPS A VERSION WITH FEWER COMPLICATED TOOLS AND A BUNCH OF WIZARDS MIGHT BE DEVELOPED FOR NOVICES AT BELOW VISIO'S ONE HUNDRED TWENTY FIVE DOLLARS STREET PRICE WHICH IS A BIT STIFF IN A MARKET WHERE SOFTWARE PRICE TAGS ARE PLUNGING IF VISIO IS TOO MUCH FOR YOU YOU MIGHT TRY SNAPGRAFX THIS PROGRAM ALSO WORKS ON THE PRINCIPLE OF PREDRAWN RESIZABLE SHAPES BUT IT DOESN'T RELY HEAVILY ON DRAG AND DROP WHICH CAN REQUIRE CONSIDERABLE DEXTERITY WITH THE MOUSE AND IT HAS MANY FEWER TOOLS AND OPTIONS MAKING FOR A SIMPLER CLEANER SCREEN IN SNAPGRAFX YOU MAINLY ADD SHAPES TO YOUR DOCUMENTS BY CLICKING ON THE SHAPE YOU WANT THEN CLICKING ON AN AREA OF THE PAGE CALLED A PLACEHOLDER THE PROGRAM THEN PUTS THE SHAPE WHERE THE PLACEHOLDER WAS MUCH OF THE RESIZING OF THE DRAWINGS IS DONE BY MOVING LITTLE TAB SYMBOLS LIKE TABS IN A WORD PROCESSING DOCUMENT ALONG THE SCREEN BORDERS BUT BE WARNED SNAPGRAFX IS FAR LESS VERSATILE THAN VISIO IT OFFERS MAINLY PRECOOKED SHAPES FOR CREATING A VARIETY OF CHARTS AND THE SHAPES ARE LESS INTELLIGENT IF YOU WANT TO DO OFFICE LAYOUTS OR ENGINEERING DIAGRAMS OR MAPS IT'S TOUGH IN SNAPGRAFX SPEAKING FOR THE ARTISTICALLY IMPAIRED PEOPLE OF THE WORLD I'M GLAD THESE PROGRAMS EXIST BUT EVEN SO REAL ARTISTS LIKE THE ONE WHO DRAWS THE CLEVER ILLUSTRATIONS FOR THIS COLUMN WON'T BE LOSING SLEEP SWITZERLAND'S NESTLE S. A. THE WORLD'S LARGEST FOOD GROUP SAID IT HAS REACHED AN AGREEMENT TO ACQUIRE FOREMOST FOODS TAIWAN LIMITED THE PURCHASE PRICE WASN'T DISCLOSED NESTLE SAID FOREMOST FOODS TAIWAN IS THE COUNTRY'S LEADING PRODUCER OF ICE CREAM AND HAS MAJOR MARKET POSITIONS IN THE LIQUID MILK AND YOGURT MARKET FOREMOST FOODS EMPLOYS FOUR HUNDRED PEOPLE AND HAD NINETEEN NINETY THREE SALES OF FORTY FIVE MILLION DOLLARS NESTLE SAID JAMES T. DOLUISIO WAS ELECTED TO THE BOARD OF THIS PHARMACEUTICAL MAKER RAISING THE NUMBER OF MEMBERS TO SEVEN MR. DOLUISIO FIFTY EIGHT YEARS OLD IS DEAN AND HOECHST ROUSSEL PROFESSOR OF PHARMACY AT THE UNIVERSITY OF TEXAS AT AUSTIN JOHN L. CARL SENIOR VICE PRESIDENT FINANCE AND CONTROLLER OF THIS OIL COMPANY WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER EFFECTIVE APRIL FIRST MR. CARL FORTY FIVE YEARS OLD SUCCEEDS FREDERICK S. ADDY SIXTY TWO WHO IS RETIRING PREMIER ANESTHESIA INCORPORATED AS PART OF A COMPANYWIDE RESTRUCTURING DOUBLED A PREVIOUSLY ANNOUNCED PRETAX CHARGE TO FOURTH QUARTER EARNINGS TO TWENTY FOUR MILLION DOLLARS IN ADDITION THE COMPANY SAID ITS PRESIDENT RICHARD D. BALLARD AND ITS EXECUTIVE VICE PRESIDENT TERRY S. VITEZ RESIGNED THEIR POSITIONS EFFECTIVE LAST SUNDAY BOTH MEN ALSO RESIGNED AS DIRECTORS AND WILL REMAIN WITH THE COMPANY AS CONSULTANTS PREMIER ANESTHESIA'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER RICHARD L. JACKSON WILL SUCCEED MR. BALLARD AS PRESIDENT THE INCREASE IN THE QUARTERLY EARNINGS CHARGE STEMS FROM THE COMPANY'S DECISION TO UNDERTAKE A MORE RADICAL RESTRUCTURING THAN PREVIOUSLY ENVISIONED MR. JACKSON SAID IN AN INTERVIEW PREMIER ANESTHESIA'S PAIN RELIEF SUBSIDIARY NOW CALLED THE PAIN RELIEF NETWORK INCORPORATED HAS BEEN REDUCED TO ABOUT THIRTY EMPLOYEES FROM TWO HUNDRED TWENTY FIVE HE SAID MOREOVER THE COMPANY PLANS TO SHIFT THE MARKETING OF ITS CORE ANESTHESIA SERVICES AWAY FROM HOSPITALS AND TOWARD SMALLER PRACTICE GROUPS THE RESTRUCTURING CHARGE WILL PRODUCE A LOSS FOR BOTH THE FOURTH QUARTER AND THE YEAR MR. JACKSON SAID IN THE NINETEEN NINETY TWO FOURTH QUARTER PREMIER EARNED NINE HUNDRED SEVENTY SIX THOUSAND FOUR HUNDRED EIGHTY SIX DOLLARS OR ELEVEN CENTS A SHARE ON REVENUE OF SIXTEEN POINT THREE MILLION DOLLARS FOR ALL OF NINETEEN NINETY TWO THE COMPANY HAD NET INCOME OF TWO POINT SIX MILLION DOLLARS OR THIRTY CENTS A SHARE ON REVENUE OF FIFTY EIGHT POINT SIX MILLION DOLLARS THE REDUCTION OF THE COMPANY'S PAIN RELIEF BUSINESS IS LARGELY A RESULT OF BILLING DELAYS IN WORKERS COMPENSATION CASES IN CALIFORNIA SAID MR. JACKSON THE REVEREND JESSE JACKSON THE OFTEN FIERY RAINBOW COALITION PRESIDENT WAS SUBDUED REFLECTIVE NEARLY RHYMELESS AT A RECENT HEARING OF THE CONGRESSIONAL BLACK CAUCUS BRAIN TRUST ON CRIME HE SPOKE SOLEMNLY HIS VOICE BREAKING OF HOW SOME YOUNG BLACK MEN FEEL QUOTE MORE SECURE IN JAILS THAN ON OUR STREETS QUOTE WITH TEARS IN HIS EYES HE SPOKE OF DEATH IN HIS OWN NEIGHBORHOOD HERE AND THE PRECARIOUS POSITION OF BLACK YOUTH NEARLY HALF OF ALL MURDER VICTIMS ARE BLACK HE SAID MORE BLACKS KILL EACH OTHER EACH YEAR THAN WERE KILLED IN THE ENTIRE HISTORY OF LYNCHING YET THE REVEREND JACKSON ASSAILED ONE OF THE PRIME LEGISLATIVE VEHICLES FOR DEALING WITH THAT EXPLOSION OF VIOLENCE THE SENATE PASSED CRIME LEGISLATION THAT PRESIDENT CLINTON BACKED IN HIS STATE OF THE UNION ADDRESS THE MEASURE HE DECLARED IS AN ILL CONCEIVED BILL AND A DRACONIAN EXPENSIVE NON REMEDY THE BILL HAS WIDESPREAD BIPARTISAN SUPPORT IN THE SENATE LAWMAKERS CONTEND IT REPRESENTS THE TOUGHEST AND MOST COMPREHENSIVE GOVERNMENT ATTACK YET ON VIOLENT CRIME AN ISSUE AT THE TOP OF THE PUBLIC'S LIST OF CONCERNS IN OPINION POLLS BUT AT A TIME WHEN AFRICAN AMERICANS INCREASINGLY ARE SPEAKING OUT AGAINST BLACK CRIMINALS AND THE GANGSTA RAP THAT SEEMS TO GLORIFY VIOLENCE THE BLACK CAUCUS AND OTHERS SAY THE SENATE BILL IS TOO CONCERNED WITH PUNISHMENT AND NOT ENOUGH CONCERNED WITH THE ALLEVIATION OF THE CONDITIONS THAT CAUSE CRIME THE STRONG OPPOSITION TO THE MEASURE PRESENTS A PROBLEM FOR PRESIDENT CLINTON WHOSE SUPPORT FOR THE LEGISLATION PLACES HIM AT ODDS WITH A CORE GROUP OF DEMOCRATS WHO ELECTED HIM CITING MR. CLINTON'S EMBRACE OF ONE PROVISION OF THE SENATE BILL MANDATORY LIFE SENTENCES FOR CRIMINALS CONVICTED OF THREE VIOLENT FELONIES THE DEAN OF THE BLACK CAUCUS DEMOCRATIC REPRESENTATIVE JOHN CONYERS OF MICHIGAN DECRIES THE LOCK 'EM UP AND THROW AWAY THE KEY APPROACH THAT ONLY FOOLS THE PUBLIC INTO BELIEVING THAT WE'RE DOING SOMETHING ABOUT CRIME THE WHITE HOUSE WILL TRY TO ASSUAGE AT LEAST SOME OPPONENTS' CONCERNS AS CONGRESS UNDERTAKES TO RECONCILE THE SENATE BILL WITH A MUCH DIFFERENT HOUSE MEASURE JUSTICE DEPARTMENT OFFICIALS WHO WERE CRITICIZED FOR NOT VISIBLY EXERTING INFLUENCE OVER THE SENATE BILL LAST YEAR WILL PLAY A MORE OVERT ROLE IN REMOVING OR MODIFYING THE MORE EXTREME PROVISIONS THIS YEAR DEPUTY ATTORNEY GENERAL PHILIP HEYMANN PLANS TO TESTIFY AT HOUSE CRIME LEGISLATION HEARINGS AND MR. CLINTON HIMSELF HELD OUT THE CARROT OF HELP TO ENDANGERED YOUTH IN HIS SPEECH TO CONGRESS QUOTE WE HAVE GOT TO STOP POINTING OUR FINGERS AT THESE KIDS WHO HAVE NO FUTURE QUOTE HE SAID QUOTE AND REACH OUR HANDS OUT TO THEM QUOTE THE QUESTION THOUGH IS WHETHER ENOUGH CHANGES CAN BE MADE TO THE BILL TO SOFTEN OPPOSITION TO IT IN ADDITION TO THE BLACK CAUCUS A RANGE OF OTHERS INCLUDING THE AMERICAN BAR ASSOCIATION THE AMERICAN CIVIL LIBERTIES UNION THE NATIONAL CONFERENCE OF STATE LEGISLATORS AND MANY FEDERAL JUDGES AND PROSECUTORS OPPOSE STRINGENT SENTENCING PROVISIONS IN THE BILL OTHER LESS CONTROVERSIAL PROVISIONS IN THE TWENTY TWO POINT THREE BILLION DOLLARS LEGISLATION INCLUDE AUTHORIZATION FOR ONE HUNDRED THOUSAND ADDITIONAL POLICE OFFICERS DRUG TREATMENT AND OTHER CRIME PREVENTION PROGRAMS SOME BLACK LEADERS SUCH AS THE LEADERSHIP OF THE NATION OF ISLAM HAVE LONG SPOKEN OUT AGAINST CRIME AND FOR THE KIND OF VALUES THAT MAKE IT UNACCEPTABLE BUT THE MAINSTREAM CIVIL RIGHTS LEADERSHIP GENERALLY AVOIDED THE RHETORIC OF LAW AND ORDER REGARDING IT AS A CODE FOR KEEPING BLACKS BACK LAW AND ORDER DIDN'T MEAN JUSTICE MR. JACKSON USED TO SAY BUT JUST US IN THE PAST MANY WERE HESITANT TO SPEAK ABOUT CRIME IN PUBLIC BECAUSE THE LARGER COMMUNITY WOULD TALK ABOUT LOCK THEM UP AND THROW THE KEY AWAY AND HIDE BEHIND BLACK LEADERS IN DOING IT EXPLAINS REPRESENTATIVE CRAIG WASHINGTON THE HOUSTON DEMOCRAT WHO LED THE CAUCUS HEARING NOW THERE IS ESCALATING DISCOURSE WITHIN THE BLACK COMMUNITY ABOUT WHAT IT CAN AND MUST DO TO STOP CRIME JUST AFTER THE NEW YEAR MR. JACKSON HELD THE FIRST OF SEVERAL CONFERENCES FOCUSING ON JUST THAT THE PREMIER CIVIL RIGHTS ISSUE OF THIS DAY IS YOUTH VIOLENCE IN GENERAL AND BLACK ON BLACK VIOLENCE IN PARTICULAR HE HAS SAID HIS CONFERENCE ALSO NOTED THE STRUCTURAL CONDITIONS THAT ENCOURAGE CRIME THE SORRY STATE OF THE BLACK ECONOMY HIGH UNEMPLOYMENT POOR EDUCATION AND A LEGACY OF RACISM THE BLACK LEADERS RECOGNIZE THAT IF THEY DON'T STEP OUT FRONT AND ENGAGE IN THE DISCUSSION THAT BASICALLY OUR YOUNG PEOPLE ARE TURNING THEMSELVES INTO SLAVES SAYS REPRESENTATIVE WASHINGTON WITHIN THE BLACK COMMUNITY THERE IS QUOTE MORE PUBLIC CONCERN AND DEBATE ABOUT THE APPROPRIATE LEVEL OF RESPONSE TO INCREASING CRIME AND VIOLENCE QUOTE MANY OF THE BLACK LEADERS INVOLVED IN THE GROWING DEBATE RETAIN STRONG OBJECTIONS TO THE SENATE BILL WITH ITS LARGE NUMBER OF MANDATORY MINIMUM SENTENCES DEATH PENALTIES AND FEDERALIZATION OF LOCAL CRIMES ONE OF THE SENATE MEASURES STRONGLY OPPOSED BY MOST MEMBERS OF THE BLACK CAUCUS HAS AS ITS AUTHOR ONE OF ITS OWN ILLINOIS DEMOCRATIC SENATOR CAROL MOSELEY BRAUN HER AMENDMENT WOULD RESTRICT PROSECUTORIAL DISCRETION A POINT OPPOSED BY ATTORNEY GENERAL JANET RENO BY DIRECTING U. S. ATTORNEYS TO PROSECUTE AS ADULTS THIRTEEN YEAR OLDS CHARGED WITH COMMITTING VIOLENT CRIMES WITH FIREARMS THE PROVISION WOULD FEDERALIZE MANY CRIMES CURRENTLY PROSECUTED BY THE STATES YET NOTES FEDERAL JUDGE MARYANNE TRUMP BARRY OF NEWARK N. J. WHO IS CHAIRWOMAN OF THE CRIMINAL LAW COMMITTEE OF THE JUDICIAL CONFERENCE OF THE U. S. THERE IS NO FEDERAL JUVENILE JUSTICE SYSTEM TO HANDLE SUCH CASES NO FEDERAL JUVENILE PRISONS FOR INSTANCE AND NO FEDERAL YOUTH PROBATION OFFICERS THE NATIONAL CONFERENCE OF STATE LEGISLATURES IS SO OPPOSED TO THE FEDERALIZATION OF STATE CRIMES ANOTHER PROVISION IN THE BILL PUSHED BY G. O. P. SENATOR ALFONSE D'AMATO OF NEW YORK WOULD FEDERALIZE ALL VIOLENT HANDGUN CRIMES THAT IT RECENTLY WROTE PRESIDENT CLINTON TO SAY THE SENATE BILL IS INIMICAL TO PRINCIPLES OF FEDERALISM AND WE MUST OPPOSE IT AND A MEASURE THAT WOULD REQUIRE STATES TO ADOPT CERTAIN FEDERAL SENTENCING GUIDELINES SUCH AS MANDATORY MINIMUM SENTENCES TO GET FEDERAL PRISON BUILDING FUNDS IS COERCIVE POLICY COMPLAINS JON FELDE NCSL'S GENERAL COUNSEL THERE ARE NUMEROUS MANDATORY MINIMUM PROVISIONS IN THE LEGISLATION THAT MR. WASHINGTON FEARS COULD BE USED IN AN UNFAIR FASHION AGAINST BLACKS WHO MAY BE CHARGED MORE HARSHLY THAN WHITES FOR SIMILAR ACTS AND FEDERAL JUDGES HAVE CONSISTENTLY VEHEMENTLY AND VIRTUALLY UNANIMOUSLY OPPOSED MANDATORY MINIMUM SENTENCES JUDGE BARRY WROTE TO SENATE JUDICIARY COMMITTEE CHAIRMAN JOSEPH BIDEN DEMOCRAT OF DELAWARE IN NOVEMBER OTHER MEASURES THAT CAUCUS MEMBERS SAY COULD BE USED IN A DISCRIMINATORY WAY ARE THOSE THAT WOULD MAKE IT A FEDERAL CRIME TO CONSPIRE TO PARTICIPATE IN A CRIMINAL STREET GANG AND THAT PROVIDES THE DEATH PENALTY FOR DRUG KINGPINS EVEN IF NO DEATH CAN BE SHOWN TO HAVE RESULTED DIRECTLY FROM THEIR ILLEGAL ACTIVITY THE JUSTICE DEPARTMENT HAS WARNED CONGRESS THAT IT THINKS THE DRUGKINGPIN PROVISION IS UNCONSTITUTIONAL THE ANTI GANG MEASURE WILL ALSO BE HIT ON CONSTITUTIONAL GROUNDS IN THE HOUSE BUT SENATOR BIDEN INSISTS THAT THE FINAL LEGISLATION WILL INCLUDE ENOUGH SIGNIFICANT PREVENTION AND PUNISHMENT PROVISIONS THAT LIBERALS AND CONSERVATIVES ALIKE WILL BE ABLE TO ENDORSE IT AFTER ALL HE SAYS EVERYBODY IS KIND OF SINGING FROM THE SAME HYMNAL ON THE BROAD STROKES THREE MAJOR CHEMICAL MAKERS HAD MIXED RESULTS IN THEIR FOURTH QUARTER BOTTOM LINES BUT OPERATING EARNINGS AT ALL THREE SHOWED MARKED IMPROVEMENT FROM THE GENERALLY WEAK YEAR EARLIER PERIOD THE STRENGTHENING U. S. ECONOMY AND EARLIER BELT TIGHTENING EFFORTS UNDERTAKEN IN RESPONSE TO THE INDUSTRY'S PROTRACTED WEAKNESS HELPED OFFSET CONTINUED LOW PRICES FOR MANY COMMODITY CHEMICALS DUPONT COMPANY THE NATION'S BIGGEST CHEMICAL MAKER HAD ITS UNDERLYING PROFITABILITY IMPROVE SHARPLY EXCLUDING NONRECURRING ITEMS EARNINGS MORE THAN TRIPLED TO THREE HUNDRED TWENTY NINE MILLION DOLLARS OR FORTY EIGHT CENTS A SHARE FROM THE YEAR EARLIER QUARTER'S NINETY SEVEN MILLION DOLLARS OR FOURTEEN CENTS A SHARE SALES INCHED UP TO NINE POINT TWO FIVE BILLION DOLLARS FROM NINE POINT ONE SIX BILLION DOLLARS THE YEAR EARLIER QUARTER'S NET INCOME WAS WRACKED BY A THREE HUNDRED TWENTY SEVEN MILLION DOLLAR RESTRUCTURING CHARGE IN THE LATEST PERIOD THE WILMINGTON DELAWARE CONCERN TOOK A ONE HUNDRED FORTY FOUR MILLION DOLLAR CHARGE TO BOLSTER LEGAL RESERVES RELATING TO LIABILITY CLAIMS STEMMING FROM ITS BENLATE DF FUNGICIDE THAT WAS PARTIALLY OFFSET HOWEVER BY THE FIFTY TWO MILLION DOLLAR GAIN DUPONT RECORDED FROM THE SALE OF ITS REMINGTON ARMS UNIT AND OF ITS DUPONT CANADA'S UNIT'S POLYETHYLENE BUSINESS DUPONT'S EFFORT TO CUT OPERATING COSTS WHICH HAS BOOSTED PROFIT MARGINS IN RECENT QUARTERS QUOTE SHOWED MOST CLEARLY QUOTE IN THE LATEST PERIOD THE COMPANY SAID ITS CONOCO ENERGY UNIT SAW OPERATING EARNINGS JUMP TO ONE HUNDRED SIXTY THREE MILLION DOLLARS FROM NINETY FOUR MILLION DOLLARS DESPITE A DECLINE IN OIL PRICES LARGELY ON THE STRENGTH OF EARLIER COST CUTTING MOVES BUT DUPONT NOTED THAT THERE'S A LAG BETWEEN THE TIME OIL PRICES FALL AND WHEN THE IMPACT SHOWS UP IN THE COMPANY'S RESULTS IF OIL PRICES STAY SOFT THE COMPANY SAID IT WOULD EXPECT THE EFFECTS TO SHOW UP IN CONOCO RESULTS BEGINNING IN NINETEEN NINETY FOUR'S FIRST QUARTER THE COMPANY'S CHEMICALS OPERATION SAW ITS OPERATING PROFIT INCREASE TO SEVENTY SIX MILLION DOLLARS FROM FIFTY ONE MILLION DOLLARS ALSO MAINLY ON THE STRENGTH OF EARLIER COST CUTTING OPERATING PROFIT DOUBLED AT ITS BIG FIBERS UNIT TO ONE HUNDRED FOUR MILLION DOLLARS ALTHOUGH PRICING REMAINS UNDER PRESSURE IN EUROPE WHERE THE ECONOMY'S WEAKNESS HAS BEEN HURTING MOST CHEMICAL MAKERS FOR MORE THAN A YEAR OPERATING PROFIT PICKED UP FROM THE YEAR EARLIER QUARTER AND THE COMPANY SAID WE APPEAR TO BE SEEING AT LEAST A BOTTOMING OF THE ECONOMIC PROBLEMS IN THE REGION AT UNION CARBIDE CORPORATION SALES FELL NINE POINT SIX PERCENT TO ONE POINT OH SEVEN BILLION DOLLARS FROM ONE POINT ONE NINE BILLION DOLLARS BUT EARNINGS AT THE DANBURY CONNECTICUT COMPANY BENEFITED FROM OUR COST REDUCTION EFFORTS DESPITE THE CONTINUED WORLD WIDE DOWNTURN IN THE CHEMICAL INDUSTRY ACCORDING TO CHAIRMAN ROBERT D. KENNEDY A CHARGE AND A GAIN IN THE LATEST PERIOD COMBINED TO INCREASE EARNINGS BY ONE MILLION DOLLARS IN THE YEAR EARLIER QUARTER A HOST OF ITEMS BOOSTED EARNINGS BY ABOUT SEVEN MILLION DOLLARS PER SHARE FIGURES REFLECT AN INCREASE IN SHARES OUTSTANDING TO ONE HUNDRED FIFTY FOUR POINT EIGHT MILLION IN THE LATEST PERIOD FROM ONE HUNDRED THIRTY FIVE POINT THREE MILLION WHILE ALREADY SOFT PRICING FOR SOME OF ITS COMMODITY CHEMICALS SUCH AS POLYETHYLENE WEAKENED FURTHER DURING THE PERIOD CHEAPER PRICES FOR PETROLEUM BASED FEEDSTOCKS OR RAW MATERIALS HELPED AMELIORATE THE DECLINE INTEREST EXPENSE FELL BY TEN MILLION DOLLARS OR FORTY THREE PERCENT AS A RESULT OF REFINANCING AND EARLIER DIVESTITURES AND THE COMPANY IS THOUGHT TO BE ALSO BENEFITING FROM INCREASED TECHNOLOGY LICENSING FEES ALTHOUGH CARBIDE DOESN'T MAKE THOSE FIGURES AVAILABLE AT OLIN CORPORATION THE LATEST QUARTER OF THE STAMFORD CONNECTICUT CHEMICAL DEFENSE AND AEROSPACE CONCERN WAS MARRED BY A ONE HUNDRED THIRTY ONE POINT SEVEN MILLION DOLLAR CHARGE LINKED TO AN EARLIER ANNOUNCED EFFORT TO PARE OPERATING COSTS THROUGH STAFF CUTS AND CONSOLIDATIONS SALES ROSE EIGHT POINT THREE PERCENT TO FIVE HUNDRED NINETY EIGHT POINT FOUR MILLION DOLLARS FROM FIVE HUNDRED FIFTY TWO POINT THREE MILLION DOLLARS WITHOUT THE CHARGE THE COMPANY SAID EARNINGS WOULD HAVE SHOWN A MODEST INCREASE TO NINE MILLION DOLLARS IN THE LATEST PERIOD FROM THREE POINT FOUR MILLION DOLLARS OLIN'S CHEMICALS OPERATION HOWEVER HAD AN OPERATING LOSS OF TWO POINT EIGHT MILLION DOLLARS COMPARED WITH A BREAK EVEN PERFORMANCE IN THE YEAR EARLIER PERIOD AS PRICING PRESSURE HURT PROFITS AT ITS CHLOR ALKALI BUSINESS THE SEGMENT'S OPERATING DEFICIT CAME DESPITE A NINETEEN PERCENT INCREASE IN SALES TO TWO HUNDRED FIFTY FIVE POINT FOUR MILLION DOLLARS OLIN'S METALS SEGMENT AND ITS DEFENSE AND AMMUNITION OPERATION SHOWED HIGHER OPERATING EARNINGS DESPITE MODEST SALES DOWNTURNS ANTILOCK BRAKES TOUTED BY CAR COMPANIES AS A GIANT ADVANCE IN AUTO SAFETY TECHNOLOGY HAVE NOT REDUCED THE NUMBER OF ACCIDENTS ON U. S. ROADS ACCORDING TO A STUDY BY THE HIGHWAY LOSS DATA INSTITUTE THE NONPROFIT INSURANCE GROUP SAID THERE'S NOTHING WRONG WITH THE BRAKES WHICH PREVENT WHEELS FROM LOCKING DURING EMERGENCY BRAKING RATHER MANY MOTORISTS DON'T USE THE ANTILOCK BRAKES PROPERLY SAID BRIAN O'NEILL INSTITUTE PRESIDENT HE SAID ANTILOCK BRAKES SHOULD NEVER BE PUMPED AS DRIVERS ARE TAUGHT TO DO WITH CONVENTIONAL BRAKES MR. O'NEILL SAID CAR COMPANIES ALSO MAY BE OVERSELLING THE ADVANTAGES OF ANTILOCK BRAKES FOR INSTANCE MANY ADVERTISEMENTS FOR THE MECHANISM DON'T MAKE CLEAR THAT THEIR PRIMARY ADVANTAGE IS ON WET AND SLIPPERY ROADS MR. O'NEILL SAID THE INSTITUTE'S STUDY COMPARED INSURANCE LOSSES FOR CARS WITH ANTILOCK BRAKES AND LOSSES FOR THE SAME CARS WITHOUT THEM QUOTE WE FIND NO REDUCTION IN CLAIM FREQUENCIES OR AVERAGE AMOUNTS OF INSURANCE PAYMENTS UNDER EITHER COLLISION OR PROPERTY DAMAGE LIABILITY COVERAGES QUOTE SAID KIM L. HAZELBAKER SENIOR VICE PRESIDENT OF THE INSTITUTE ANTILOCK BRAKES CAN PREVENT WHEELS FROM LOCKING REDUCE STOPPING DISTANCES AND IMPROVE DRIVER CONTROL DURING EMERGENCY BRAKING ESPECIALLY ON SLIPPERY PAVEMENT WITH ANTILOCK BRAKES WHEN ANY WHEEL IS ABOUT TO LOCK THE BRAKE PRESSURE IS REDUCED ENOUGH FOR THE WHEELS TO START ROTATING AGAIN THE CHIEF EXECUTIVE OFFICER OF CONTINENTAL CAN COMPANY DONALD J. BAINTON WAS CHARGED UNDER INSIDER TRADING LAWS WITH ALLEGEDLY GIVING NONPUBLIC INFORMATION ON THE COMPANY TO A FRIEND THE SECURITIES AND EXCHANGE COMMISSION IN A COMPLAINT FILED IN FEDERAL COURT IN MANHATTAN ALLEGED THAT MR. BAINTON IN MARCH NINETEEN NINETY TWO TIPPED JOHN R. CURTIN A FRIEND AND PRESIDENT OF CLOSELY HELD WFF INTERNATIONAL INCORPORATED THAT CONTINENTAL CAN THEN KNOWN AS VIATECH INCORPORATED WAS ABOUT TO REPORT POOR YEAR END RESULTS MR. CURTIN SOLD ALL OF HIS STOCK IN THE COMPANY THE S. E. C. SAID FOR THIRTY SIX POINT SIX TWO FIVE DOLLARS A SHARE OR ABOUT ONE HUNDRED EIGHTY ONE THOUSAND DOLLARS VIATECH'S STOCK FELL TO A FIFTY TWO WEEK LOW AFTER THE ANNOUNCEMENT AND MR. CURTIN AVOIDED FIFTY EIGHT THOUSAND SEVEN HUNDRED FIFTY DOLLARS IN LOSSES THE S. E. C. SAID ABDO YAZGI EXECUTIVE VICE PRESIDENT OF CONTINENTAL CAN SAID MR. BAINTON QUOTE CATEGORICALLY DENIES QUOTE THAT HE DISCLOSED INSIDER INFORMATION OR TIPPED MR. CURTIN OFF MR. BAINTON AND HIS FAMILY OWN ABOUT TWENTY FIVE PERCENT OF THE COMPANY'S SHARES OUTSTANDING MR. BAINTON WAS PREVIOUSLY PRESIDENT OF CONTINENTAL CAN GROUP BEFORE IT WAS ACQUIRED IN NINETEEN EIGHTY FOUR BY PETER KIEWIT SONS INCORPORATED OF OMAHA NEBRASKA HE LED AN EFFORT TO REMAKE VIATECH THROUGH SEVERAL ACQUISITIONS AND BY ADOPTING THE OLD CONTINENTAL CAN NAME FOR THE COMPANY THE S. E. C. IS SEEKING INJUNCTIONS AGAINST BOTH MR. BAINTON AND MR. CURTIN AND CIVIL PENALTIES FROM EACH THE S. E. C. SAID IT ALSO IS SEEKING DISGORGEMENT OF THE FIFTY EIGHT THOUSAND SEVEN HUNDRED FIFTY DOLLAR LOSS AVOIDED BY MR. CURTIN MR. YAZGI OF CONTINENTAL CAN SAID THAT MR. BAINTON IS CONFIDENT HE WILL BE VINDICATED IN COURT THROUGH A SPOKESMAN MR. CURTIN DENIED THE S. E. C.'S CHARGES AS CHRYSLER RACKS UP A STRING OF PROFITABLE QUARTERS AND NEW PRODUCT LAUNCHES ONE FACT HAS ALMOST BEEN LOST THE NUMBER THREE AUTO MAKER HAS THE WORST QUALITY RECORD OF DETROIT'S BIG THREE AS DETERMINED BY J. D. POWER AND ASSOCIATES' ANNUAL INITIAL QUALITY SURVEY AND AS DETERMINED BY ANDREA SMITH A THIRTY THREE YEAR OLD MANAGER AT BORDER'S BOOKSTORES IN ANN ARBOR MICHIGAN WHEN IT WAS NEW MS. SMITH'S NINETEEN EIGHTY EIGHT PLYMOUTH SUNDANCE STALLED ON THE HIGHWAY AND THE ENGINE OF THE SUNDANCE MADE BY CHRYSLER CORPORATION QUIT THREE OR FOUR MORE TIMES BEFORE SHE SOLD THE CAR THIS YEAR AND BOUGHT A HONDA CIVIC CHRYSLER'S NEW NEON IS SIMILAR TO THE FOUR DOOR CIVIC BUT COSTS ABOUT ONE THOUSAND SIX HUNDRED DOLLARS LESS BUT MS. SMITH DIDN'T EVEN LOOK AT THE NEON WHEN SHE WENT SHOPPING FOR A NEW CAR QUOTE I THOUGHT ABOUT THE NEON FOR A HOT SECOND QUOTE SHE SAYS QUOTE BUT THEN I REALIZED I COULDN'T CARE LESS ABOUT THE PRICE UNLESS THEY'RE GIVING IT AWAY FOR FREE I'M INTERESTED IN A GOOD CAR THIS DEVASTATING ASSESSMENT COMES AT A CRUCIAL TIME FOR CHRYSLER WHICH IS TRYING TO CHANGE ITS IMAGE FROM A BUILDER OF CLUNKY K. CARS SUCH AS THE PLYMOUTH RELIANT TO AS CHAIRMAN ROBERT J. EATON PUTS IT THE WORLD'S PREMIER AUTO COMPANY THE COMPANY ALSO IS ATTEMPTING TO ENTICE MORE BUYERS OF JAPANESE CARS INTO ITS DEALERSHIPS THIS YEAR AS IT LAUNCHES FIRST THE NEON A CAR AIMED SQUARELY AT THE CIVIC AND THEN THE CIRRUS AND STRATUS WHICH ARE HONDA ACCORD FIGHTERS TO WIN BUYERS AWAY FROM HONDA AND TOYOTA CHRYSLER HAS MADE AN ALL OUT EFFORT TO MAKE CERTAIN THAT THE NEON LAUNCH IS AS FLAWLESS AS POSSIBLE THE COMPANY HAS FORCED SUPPLIERS TO EXPLAIN PRECISELY HOW THEY WILL ENSURE DELIVERY OF FLAWLESS PARTS EVEN SO CHRYSLER LAST WEEK DISCOVERED THAT A LEAKY SEAL IN ONE THOUSAND ONE HUNDRED OF THE TEN THOUSAND NEONS BUILT SO FAR COULD LEAD TO BRAKE LOSS CHRYSLER AND ALLIEDSIGNAL INCORPORATED'S AUTOMOTIVE DIVISION SUPPLIER OF THE BRAKES ARE NOW FIXING THE CARS INCLUDING SOME SIXTY ALREADY IN CUSTOMER HANDS J. D. POWER TRACKS INITIAL DEFECTS ON CARS FLAWS RANGING FROM A LOOSE KNOB TO AN ENGINE THAT WON'T START THE FIRM WHICH DEPENDS ON AUTO MAKERS FOR ITS REVENUES WON'T RELEASE THE NAMES OF CAR COMPANIES THAT PERFORM WORSE THAN THE INDUSTRY AVERAGE ONE POINT OH SEVEN DEFECTS PER CAR IN ITS LAST SURVEY BUT THE NUMBERS ARE WIDELY AVAILABLE WITHIN THE INDUSTRY AND THEY SHOW THAT ON AVERAGE CHRYSLER VEHICLES HAVE ONE POINT THREE FIVE DEFECTS PER CAR DODGE CHRYSLER'S VOLUME BRAND HAS ONE POINT FOUR EIGHT DEFECTS PER CAR TWICE TOYOTA'S ZERO POINT SEVEN FOUR DEFECT RATE BIG THREE CARS AND TRUCKS AS A GROUP HAVE MORE DEFECTS THAN THE BEST OF THE JAPANESE TOYOTA MOTOR CORPORATION AND HONDA MOTOR COMPANY THAT IS ONE REASON WHY EVEN AS JAPANESE CARS BECAME MORE EXPENSIVE LAST YEAR AS THE YEN ROSE IN VALUE CONSUMERS STILL BOUGHT PLENTY OF JAPANESE CARS TOGETHER CHRYSLER FORD MOTOR COMPANY AND GENERAL MOTORS CORPORATION GAINED ONLY ONE POINT FIVE POINTS OF MARKET SHARE DESPITE A TWO THOUSAND DOLLAR TO THREE THOUSAND DOLLAR PRICE ADVANTAGE BUT CHRYSLER IS TRYING WITH CONSIDERABLE URGENCY TO ENSURE THAT ITS NEWEST PRODUCTS PERFORM BETTER THAN SOME OF ITS RECENT LAUNCHES INCLUDING THE CHRYSLER CONCORDE AND THE JEEP GRAND CHEROKEE BOTH THE CONCORDE AND THE CHEROKEE WERE DESIGNED FOR A LOW DEFECT RATE CHRYSLER SAYS THEY ARE RELATIVELY SIMPLE TO BUILD AND CHRYSLER SAYS THAT A TEAMWORK APPROACH TO THE NEW VEHICLES MEANT THAT WORKERS AND SUPPLIERS HELPED ENGINEERS ANTICIPATE PROBLEMS BUT AFTER THE CONCORDE LAUNCH IN NINETEEN NINETY TWO CHRYSLER ANNOUNCED TWO SEPARATE RECALLS ONE WAS TO FIX A DEFECTIVE WASHER THAT COULD AFFECT STEERING THEN THERE WAS AN ENGINE PART THAT COULD CAUSE PISTON WEAR LAST APRIL CHRYSLER ANNOUNCED TWO GRAND CHEROKEE RECALLS AFFECTING SIXTY FIVE PERCENT OF THE VEHICLES IT HAD BUILT SO FAR THE JEEPS HAD PROBLEMS WITH THE REAR TAILGATE LATCH MECHANISM AND WITH FRONT SUSPENSIONS THE GRAND CHEROKEE'S POWER QUALITY RATING IS BELOW THAT OF THE FORD EXPLORER AND CAME IN AT TWICE THE DEFECT RATE OF A COMPARABLE TOYOTA THE FOUR RUNNER BUT CHRYSLER ARGUES THAT ITS NEW VEHICLES ARE EXTRAORDINARILY POPULAR WITH THOSE WHO BUY THEM AND THAT THE J. D. POWER QUALITY RATING DOESN'T ADEQUATELY REFLECT THIS STRONG CUSTOMER ENTHUSIASM CHRYSLER'S PRESIDENT ROBERT A. LUTZ SAYS FURTHER THAT THE AUTO MAKERS GIVE THE CUSTOMERS HIGHER QUALITY THAN THEY DEMAND IN THE OLD DAYS HE SAYS THE BIG THREE WERE FOUR TIMES AS BAD AS THE JAPANESE IT WAS EIGHT AMERICAN DEFECTS TO TWO JAPANESE DEFECTS PER CAR BUT NOW THAT EVERYONE IS AROUND ONE IT JUST DOESN'T MATTER HE MAY BE RIGHT CONSUMER REPORTS A FREQUENT CRITIC OF THE BIG THREE RECENTLY NAMED THE DODGE INTREPID E. S. THE CONCORDE'S MECHANICAL TWIN THE BEST FAMILY SEDAN IN THE U. S. THE FIRST TIME IN A DOZEN YEARS THAT THE MAGAZINE PICKED A BIG THREE PRODUCT OVER A JAPANESE CAR AND IT SAID ITS OWNER SURVEY INDICATES THE CAR'S RELIABILITY IS BETTER THAN AVERAGE BUT INTERNALLY CHRYSLER IS FAR FROM SATISFIED WITH ITS QUALITY RATINGS IN ADDITION TO ITS NEW DEMANDS ON SUPPLIERS IT IS BUILDING PROTOTYPES EARLIER WITH THE NEON FOR EXAMPLE IT BUILT A PRECISE VERSION OF THE CAR A YEAR BEFORE LAUNCH AND FLEW SOME ONE THOUSAND FIVE HUNDRED WORKERS FROM ILLINOIS TO A PROTOTYPE ASSEMBLY PLANT IN MICHIGAN WORKERS THERE COOPERATED WITH ENGINEERS TO PERFECT THE VEHICLES AND THE ASSEMBLY PROCESS WITH THE GOAL OF MAKING BOTH AS SIMPLE AS POSSIBLE THE COMPANY ALSO HAS BEGUN TO TEST DRIVE EVERY SINGLE VEHICLE THAT ROLLS OFF THE PRODUCTION LINE MR. EATON CHRYSLER'S CHAIRMAN HAS MADE QUALITY IMPROVEMENT A TOP PRIORITY IN LATE NINETEEN NINETY TWO TO IMPROVE CONSISTENCY HE CHANGED THE WAY VEHICLE AUDITS WERE CONDUCTED AT CHRYSLER HE ALSO HAS STRETCHED THE TIME CHRYSLER SPENDS TO LAUNCH A VEHICLE TO ALLOW MORE TIME TO CORRECT QUALITY PROBLEMS AND HE APPOINTED THOMAS W. SIDLICK TO THE NEWLY CREATED POST OF VICE PRESIDENT CUSTOMER SATISFACTION AND VEHICLE QUALITY AT CHRYSLER'S BELVIDERE ILLINOIS PLANT WHERE THE NEON IS PRODUCED THE GOAL IS TO PUT THE NEON ON J. D. POWER'S TOP TEN LIST OF THE MOST DEFECT FREE CARS EVERY TWENTY YARDS OR SO ON THE ASSEMBLY LINE IS A BULLETIN BOARD WITH CHARTS DETAILING QUALITY AUDITS PERFORMED ON THE CAR IN PRODUCING THE NEON CHRYSLER LEARNED FROM ITS PERFORMANCE ON ITS L. H. MIDSIZE CARS SUCH AS THE CONCORDE AND THE GRAND CHEROKEE THE INTERIORS OF EARLY L. H. PROTOTYPES DIDN'T PRECISELY MATCH THE FINAL CAR THAT MADE IT HARD TO CHECK HOW PARTS WOULD WORK TOGETHER INSIDE THE CAR NEON PROTOTYPES MATCHED THE FINAL VERSION BOTH INSIDE AND OUTSIDE AND THEY WERE COMPLETED ALMOST A YEAR BEFORE LAUNCH MONTHS EARLIER THAN THE L. H. PROTOTYPES WERE EMPLOYEES DROVE FIFTY EARLY NEONS SIXTEEN HOURS A DAY IN AN ATTEMPT TO UNCOVER DEFECTS BEFORE THE CUSTOMER DID AND CHRYSLER DEMANDED THAT SUPPLIERS INSTITUTE RIGOROUS QUALITY CONTROL CHECKS BUT DESPITE ALL THE PRECAUTIONS PROBLEMS CROPPED UP CHRYSLER STOPPED ADDING ROOF RACKS ONTO NEONS AT ONE POINT BECAUSE THEY DIDN'T FIT PROPERLY THE COMPANY ALSO DISCOVERED THAT THE CAR'S PLASTIC RADIATOR SUPPORTS WOULD SNAP WHEN THE CARS WERE DRIVEN OVER BACK ROADS NEAR THE PLANT THE SUPPORTS WERE REPLACED WITH METAL PARTS AND IN OCTOBER EARLY PRODUCTION RUNS WERE SLOWED BECAUSE INTERNAL AUDITS INDICATED DEFECT RATES WERE WELL ABOVE CHRYSLER'S GOALS MR. SIDLICK CONCEDES CHRYSLER HAS HAD DIFFICULTY REDUCING THE NUMBER OF DEFECTS AS QUICKLY AS IT WOULD LIKE BUT HE BELIEVES CHRYSLER WILL SHOW SUBSTANTIAL IMPROVEMENT WHEN THE NEXT SURVEY IS RELEASED THIS SPRING QUOTE FORD'S BEEN DOING THIS SINCE NINETEEN SEVENTY NINE QUOTE HE SAYS WE STARTED LATE THERE WAS MORE THAN A LITTLE RONALD REAGAN IN PRESIDENT CLINTON'S SPEECH TUESDAY NIGHT NOTWITHSTANDING THE PROGRAMMATIC LITANY THE PRESIDENT ARTFULLY PLAYED ON EFFECTIVE SYMBOLS WHILE SEIZING A MORAL AND SUBSTANTIVE HIGH GROUND BUT HE ALSO DID A PRETTY GOOD IMITATION OF ANOTHER FAMOUS REPUBLICAN GENERAL DOUGLAS MACARTHUR WHEN HE SCORED HIS LEGENDARY SUCCESS AT INCHON BY BOLDLY STRIKING BEHIND ENEMY LINES LIKE THE NORTH KOREANS FOUR DECADES AGO BOB DOLE AND THE G. O. P. THIS WEEK WERE SURPRISED THEY RESPONDED MORE TO WHAT THEY ANTICIPATED THAN TO WHAT ACTUALLY TRANSPIRED FROM CRIME TO WELFARE TO PERSONAL RESPONSIBILITIES BILL CLINTON OCCUPIED WHAT REPUBLICANS THOUGHT WAS THEIR TURF MUCH OF THE SECTION ON VALUES QUOTE GOVERNMENTS DON'T RAISE CHILDREN PARENTS DO QUOTE COULD HAVE BEEN DELIVERED BY BILL BENNETT AT THE SAME TIME HE SKILLFULLY MIXED IN ENOUGH POPULISM WE NEED TO GIVE EVERY HARDWORKING TAX PAYING AMERICAN THE SAME HEALTH CARE SECURITY THAT THEY ALREADY GIVE US TO KEEP CRITICS OFF GUARD REPUBLICANS COMPLAINED HE WAS STEALING THEIR THUNDER SURE HE WAS THAT'S A LOT SMARTER THAN CEDING THOSE ISSUES WHICH IS WHAT DEMOCRATS USED TO DO THE SIXTY THREE MINUTE SPEECH WAS TOO LONG AN ENDEMIC CLINTON AFFLICTION BUT THE PRESIDENT NEVERTHELESS MASTERFULLY ACCOMPLISHED EXACTLY WHAT A STATE OF THE UNION IS SUPPOSED TO ACHIEVE IT SET THE AGENDA FOR THE POLITICAL BATTLES AHEAD MR. CLINTON PROBABLY DID AS CRITICS COMPLAIN CLAIM MORE CREDIT FOR THE IMPROVING ECONOMY THAN HE DESERVED BUT THESE BORN AGAIN VIRGINS HAVE A SHORT MEMORY DID RONALD REAGAN CREDIT THE OIL SHEIKS FOR FALLING OIL PRICES OR PAUL VOLCKER FOR TAMING INFLATION OR DID GEORGE BUSH SAY IT WAS MERELY COINCIDENCE THAT THE FALL OF THE BERLIN WALL HAPPENED ON HIS WATCH MOREOVER LAST YEAR'S CLINTON ENGINEERED BUDGET DEAL WAS A FACTOR IN LOWER INTEREST RATES AND THE RISE IN CONSUMER CONFIDENCE THEN THERE'S THE CARPING THAT THE PRESIDENT'S EMPHASIS ON INDIVIDUAL RESPONSIBILITY AND VALUES WAS MERE RHETORIC THE PRESIDENCY FRANKLIN ROOSEVELT TAUGHT US IS PRE EMINENTLY A PLACE OF MORAL LEADERSHIP ALSO ENCOURAGING IS THE WAY THIS SPEECH WAS STITCHED TOGETHER IN CONTRAST TO LAST FEBRUARY WHEN A GRUMBLING PRESIDENT WITH A MAGIC MARKER WAS RIPPING UP HIS FIRST STATE OF THE UNION ADDRESS IN THE ROOSEVELT ROOM ONLY HOURS BEFORE DELIVERY THIS TIME THE STRUCTURE AND CONTENT WERE SIMILAR TO THE INITIAL DRAFT COMPLETED JANUARY EIGHTH BY SPEECHWRITER DAVID DREYER AS WELL AS TOUCHING THE USUAL POLITICAL BASES THE WHITE HOUSE ALSO REACHED OUT FOR IDEAS FROM A HANDFUL OF BIG THINKERS SUCH AS YALE LAW SCHOOL PROFESSOR STEPHEN CARTER AND MICHAEL SANDEL A PROFESSOR OF GOVERNMENT AT HARVARD NOW IT REMAINS TO BE SEEN WHETHER THE ADMINISTRATION WILL RETREAT AND ALLOW THE OPPOSITION TO DOMINATE THE DIALOGUE THE WAY IT DID LAST YEAR OR INSTEAD WILL FOLLOW THROUGH THE PRESIDENT FOR EXAMPLE WAS SMART TO DECLARE THAT HEALTH CARE AND WELFARE LEGISLATION BOTH SHOULD BE ACTED ON THIS YEAR BUT IT WILL TAKE CONSIDERABLE SKILL TO HAVE THEM REINFORCE ONE ANOTHER AND NOT THREATEN THE NECESSARY COALITION FOR EITHER THE ADMINISTRATION CONTENDS THAT THE HEALTH CARE ISSUES NOW ARE MERE DETAILS YET EVEN MANY OF THE ADMINISTRATION'S OWN ECONOMISTS WORRY WHETHER THE ECONOMICS ARE REALISTIC THERE ARE POLITICAL PROBLEMS PRIVATELY ADMINISTRATION STRATEGISTS CLEARLY ARE WORRIED THAT HILLARY CLINTON WHOSE LEADERSHIP IS CRITICAL COULD BE SIDETRACKED OR EVEN CRIPPLED BY THE WHITEWATER INVESTIGATION EQUALLY TROUBLING WOULD BE AN INDICTMENT OF DAN ROSTENKOWSKI THE INFLUENTIAL WAYS AND MEANS COMMITTEE CHAIRMAN EVEN WITH MR. ROSTENKOWSKI THE ADMINISTRATION HAS TO DO A MUCH BETTER JOB OF WINNING SUPPORT FROM THE TWO THIRDS OF SMALL BUSINESSES THAT ALREADY PROVIDE HEALTH COVERAGE BUT THE PRESIDENT BRINGS CHIPS TO THE TABLE TOO SUPPORT FOR THE CLINTON PROPOSAL IS TEPID BUT THE PUBLIC SHOWS EVEN LESS APPETITE FOR THE ALTERNATIVES ALL OF WHICH HAVE THEIR OWN PROBLEMS ONE EXAMPLE THE CONSERVATIVE DEMOCRATIC PLAN THE COOPER BREAUX BILL IS A FAVORITE OF LARGE INSURANCE AND HEALTH CARE INTERESTS BUT IT ACTUALLY WOULD LIMIT CONSUMERS' ABILITY TO CHOOSE THEIR OWN DOCTOR FAR MORE THAN THE CLINTON PLAN WOULD FURTHER THE INSIDE THE BELTWAY CONVENTIONAL WISDOM TODAY THAT THE CLAMOR FOR A SWEEPING HEALTH CARE MEASURE IS SUBSIDING DOESN'T SQUARE WITH THE FACTS BY AN OVERWHELMING SIXTY EIGHT PERCENT TO TWENTY SEVEN PERCENT THE PUBLIC IN LAST WEEK'S WALL STREET JOURNAL SLASH N. B. C. NEWS POLL DECLARED IT'S NOT POSSIBLE TO ADDRESS HEALTH CARE PROBLEMS WITHOUT A COMPLETE OVERHAUL OF THE CURRENT SYSTEM GEE I SURE HOPE THAT MORE REPUBLICANS DON'T PICK UP ON THE ARGUMENT THAT THERE'S NO HEALTH CARE CRISIS VICE PRESIDENT ALBERT GORE CRACKED IN ONE OF TUESDAY'S BRIEFINGS TO SPIN THE PRESS ON THE STATE OF THE UNION CHARGES THAT THE PRESIDENT WANTS TO QUOTE SOCIALIZE QUOTE HEALTH CARE WILL WORK ABOUT AS WELL AS THE SAME ARGUMENT DID AGAINST MEDICARE IN NINETEEN SIXTY FIVE ON THE ECONOMY THE PRESIDENT MAINLY HOPES TO KEEP RIDING THE GOOD TIMES YET HERE TOO THERE ARE TOUGH CHALLENGES AND DECISIONS PUSHING AN OVERHAUL OF WELFARE IS GOOD POLITICS FIGURING OUT HOW TO PAY FOR IT MAY NOT BE AS IT'S CLEARLY GOING TO COST MORE IN THE SHORT RUN AND MR. CLINTON STILL HASN'T DEVELOPED A CONVINCING ALTERNATIVE TO THE BALANCED BUDGET CONSTITUTIONAL AMENDMENT CONGRESS CONSIDERS NEXT MONTH OR REALLY ADDRESSED THE ISSUE OF CURBING THE CONTINUING GROWTH IN ENTITLEMENT SPENDING ON FOREIGN POLICY MR. CLINTON FINALLY SEEMS FOCUSED ON THE BIG ISSUES RUSSIA CHINA JAPAN THE MIDDLE EAST THE FUTURE OF NATO AND EXPANDING COMMERCE WITH LATIN AMERICA INSTEAD OF THE SOMALIAS AND HAITIS THE PRESIDENT'S INSISTENCE TUESDAY NIGHT THAT DEFENSE COULDN'T BE CUT ANY FURTHER SEEMED TO SIGNAL A NEW SERIOUSNESS ABOUT NATIONAL SECURITY TO AT LEAST ONE CAREFUL REPUBLICAN OBSERVER VICE PRESIDENT GORE WILL HAVE TO PLAY A MORE VISIBLE ROLE IN FOREIGN POLICY BUT THE PRESIDENT ALSO HAS TO LEVEL MORE WITH THE PUBLIC FOR STARTERS HE SHOULD QUIT MISLEADING PEOPLE ON HOW SUCCESSFUL HIS RUSSIAN POLICY HAS BEEN LIKEWISE WHILE MOST VOTERS HAVE LITTLE INTEREST IN FOREIGN POLICY THESE DAYS THEY THINK IT'S NOT TOO MUCH TO EXPECT COMPETENCE IN NINETEEN NINETY THREE THE CLINTON FOREIGN POLICY DECISION MAKING TOO OFTEN RESEMBLED A CROSS BETWEEN A GRADUATE SCHOOL SEMINAR AND A FRATERNITY HOUSE BULL SESSION THAT HAS TO CHANGE AFTER A YEAR IN OFFICE BILL CLINTON FACES A SITUATION ALMOST THE EXACT OPPOSITE OF RONALD REAGAN'S AFTER ONE YEAR MUCH OF THE PUBLIC IS PRETTY SATISFIED WITH HIS POLICIES BUT HARBORS RESERVATIONS ABOUT HIM PERSONALLY THAT PROBLEM WON'T SUBSIDE EASILY BUT AT THE START OF YEAR TWO TUESDAY NIGHT THE PRESIDENT CLEARLY CONNECTED WITH THE AMERICAN PEOPLE AND THAT'S A GOOD START SCOTT PAPER COMPANY HURT BY WORLD WIDE OVERCAPACITY IN THE PAPER INDUSTRY TOOK A FOURTH QUARTER CHARGE OF THREE HUNDRED EIGHTY ONE MILLION DOLLARS FOR A SWEEPING RESTRUCTURING THAT WILL INCLUDE CUTTING EIGHT THOUSAND THREE HUNDRED JOBS OR TWENTY FIVE PERCENT OF ITS WORK FORCE AND CLOSING SOME PLANTS ANALYSTS ESTIMATED THAT THE COMPANY WILL SAVE THREE HUNDRED MILLION DOLLARS ANNUALLY WHEN THE JOB CUTS ARE COMPLETED IN THREE YEARS AND AS MUCH AS AN ADDITIONAL THREE HUNDRED MILLION DOLLARS ANNUALLY FROM THE PLANT CLOSINGS AND CONSOLIDATIONS WHICH THE COMPANY SAID WILL INCLUDE IDLING SOME TISSUE PAPER AND COATED PAPER MACHINES AND MAKING QUOTE EFFICIENCY IMPROVEMENTS QUOTE AT ITS PAPER AND PULP PLANTS THE MOVES WHICH WERE MORE AGGRESSIVE THAN ANALYSTS EXPECTED REPRESENT THE LAST MAJOR ACTION TO BE TAKEN BY PHILIP E. LIPPINCOTT CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO HAS ANNOUNCED PLANS TO RETIRE IN EARLY APRIL WE CAN NO LONGER COUNT ON IMPROVING PRICES INCREASING VOLUME OR INFLATION MR. LIPPINCOTT SAID SO WE NEED TO ASSUME THAT NONE OF THAT WILL HELP US AND CONCENTRATE SOLELY ON BECOMING THE LOWEST COST PRODUCER POSSIBLE THE NEWS SENT THE SHARES OF SCOTT UP TWO POINT ONE TWO FIVE DOLLARS OR FOUR POINT NINE PERCENT TO CLOSE AT A FIFTY TWO WEEK HIGH OF FORTY FIVE DOLLARS AND FIFTY CENTS IN EXTREMELY HEAVY COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BUT SOME ANALYSTS SUGGESTED THAT THE RESTRUCTURING CHARGE THE THIRD THAT SCOTT HAS TAKEN IN THE LAST FOUR YEARS AND BY FAR THE LARGEST SIGNALS THAT THE COMPANY MAY NEED TO DO MORE THEY ANNOUNCED A MUCH STRONGER MORE AGGRESSIVE PLAN THAN ANYONE THOUGHT THEY WOULD SAID MARK S. ROGERS AN ANALYST WITH PRUDENTIAL SECURITIES INCORPORATED AND THE MARKET'S REACTION IS A TYPICAL REACTION TO PROJECTED SAVINGS BUT I WOULD ADVISE SOME CAUTION BECAUSE THE SIZE OF THE CHARGE MAY REFLECT SOME UNDERLYING PROBLEMS THAT WON'T BE SO EASY TO SOLVE LARGELY AS A RESULT OF THE CHARGE WHICH AMOUNTED TO FIVE DOLLARS AND FIFTEEN CENTS A SHARE THE COMPANY WHICH IS BASED IN PHILADELPHIA REPORTED A NET LOSS OF THREE HUNDRED SEVENTY POINT THREE MILLION DOLLARS OR FIVE DOLLARS AND ONE CENT A SHARE FOR THE FOURTH QUARTER THE LOSS ALSO INCLUDED OTHER NONRECURRING CHARGES OF FOURTEEN POINT ONE MILLION DOLLARS OR NINETEEN CENTS A SHARE AND A NINE POINT SIX MILLION DOLLAR CHARGE OR THIRTEEN CENTS A SHARE FOR EARLY RETIREMENT OF DEBT A YEAR EARLIER NET INCOME WAS FORTY FOUR POINT EIGHT MILLION DOLLARS OR SIXTY ONE CENTS A SHARE REVENUE DECLINED FIVE POINT EIGHT PERCENT TO ONE POINT TWO OH BILLION DOLLARS FROM ONE POINT TWO EIGHT BILLION DOLLARS THE DEPTH OF THE JOB CUTS AND PLANT CLOSINGS REFLECT THE WORLD WIDE PAPER INDUSTRY OVERCAPACITY PROBLEMS WHICH HAVE LED TO INTENSE PRICE COMPETITION AND DEPRESSED EARNINGS SCOTT SAID IT PLANS TO SLASH EIGHT THOUSAND THREE HUNDRED JOBS IN THE NEXT THREE YEARS REDUCING ITS WORK FORCE TO TWENTY FOUR THOUSAND SEVEN HUNDRED THE CUTS INCLUDE THREE THOUSAND EIGHT HUNDRED IN THE U. S. ONE THOUSAND NINE HUNDRED IN MEXICO AND TWO THOUSAND SIX HUNDRED OVERSEAS THE U. S. CUTS WILL INCLUDE THREE HUNDRED AT CORPORATE OFFICES THE COMPANY WOULDN'T SPECIFY HOW MANY PLANTS WOULD BE CLOSED SAYING ONLY THAT QUOTE SOME QUOTE WOULD BE SHUT IT ALSO PLANS EFFICIENCY IMPROVEMENTS AT ITS PAPER AND PULP PLANTS WHICH LIKELY WILL INCLUDE PARTIAL REDUCTIONS IN PLANT CAPACITIES AND AT ITS S. D. WARREN PRINTING PAPERS UNIT THE COMPANY PLANS TO IDLE TWO OF FOUR MACHINES AT ITS WESTBROOK MAINE PLANT THE COMPANY WILL ALSO CONVERT A SPANISH MILL FROM VIRGIN TO RECYCLED PULP MR. LIPPINCOTT SAID THE ANNOUNCEMENT REFLECTS AN INTERNAL REVIEW PROCESS THAT BEGAN LAST MAY THE COMPANY SAID IT WILL PUT OFF FURTHER STRATEGIC DECISIONS UNTIL A NEW CHIEF EXECUTIVE IS NAMED SCOTT SAID THEY WILL SHUT DOWN AS MANY PLANTS AS THEY NEED TO IN ORDER TO SIMPLIFY THEIR OPERATIONS AND CUT COSTS SAID MATTHEW BERLER AN ANALYST WITH DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION MARKET SHARE AND VOLUME GAINS ARE NO LONGER THEIR FOCUS BUT INSTEAD IT HAS BECOME PRODUCTION COSTS AND EFFICIENCY THEY ARE BEGINNING TO PLAY THE GAME DIFFERENTLY THAN THE REST OF THE PAPER INDUSTRY PART OF SCOTT'S CHANGE IN STRATEGY STEMS FROM THE EXTREME PRICING PRESSURE AT ITS CORE PERSONAL CARE AND CLEANING PRODUCTS GROUP FOR NINETEEN NINETY THREE SALES DECLINED TO THREE POINT FIVE EIGHT BILLION DOLLARS FROM THREE POINT EIGHT SIX BILLION DOLLARS IN NINETEEN NINETY TWO IN THE U. S. MARKET SHARE BATTLES CONTINUE TO ERODE MARGINS SCOTT CONTINUES TO PERFORM STRONGLY WITH ITS BABY FRESH BABY WIPES BUT OTHER BUSINESSES SUCH AS FACIAL TISSUE AND TOILET PAPER HAVEN'T BEEN AS STRONG AMONG ITS BRANDED PRODUCTS SCOTT SELLS VIVA PAPER TOWELS COTONELLE TOILET PAPER AND SCOTTIES FACIAL TISSUE IN PAPER PRODUCTS PRICE WARFARE AND INTENSE COMPETITIVE CONDITIONS DOMINATE THE MARKET SAID BRUCE KIRK AN ANALYST WITH S. G. WARBURG AND COMPANY AT S. D. WARREN THE COMPANY'S PRINTING PAPER BUSINESS SALES DECLINED TO ONE POINT ONE SIX BILLION DOLLARS IN NINETEEN NINETY THREE FROM ONE POINT TWO FOUR BILLION DOLLARS IN NINETEEN NINETY TWO AS OVERCAPACITY PROBLEMS CONTINUED TO PUSH PRICES DOWN OPERATING PROFIT DECLINED TO SEVENTY NINE POINT SIX MILLION DOLLARS IN NINETEEN NINETY THREE FROM NINETY POINT EIGHT MILLION DOLLARS IN NINETEEN NINETY TWO FOR ITS NINETEEN NINETY THREE REPORTING YEAR ENDED DECEMBER TWENTY FIFTH SCOTT REPORTED A NET LOSS OF TWO HUNDRED SEVENTY SEVEN MILLION DOLLARS OR THREE DOLLARS AND SEVENTY FIVE CENTS A SHARE COMPARED WITH NET INCOME OF ONE HUNDRED SIXTY SEVEN POINT TWO MILLION DOLLARS OR TWO DOLLARS AND TWENTY SIX CENTS A SHARE IN NINETEEN NINETY TWO REVENUE DECLINED SIX POINT SEVEN PERCENT TO FOUR POINT SEVEN FIVE BILLION DOLLARS IN FISCAL NINETEEN NINETY THREE FROM FIVE POINT OH NINE BILLION DOLLARS IN NINETEEN NINETY TWO THE NINETEEN NINETY THREE EARNINGS INCLUDE A TWENTY ONE POINT SEVEN MILLION DOLLAR OR TWENTY NINE CENTS A SHARE GAIN FROM CHANGES IN ACCOUNTING FOR INCOME TAXES IN PROMOTING HIS PLAN TO PROVIDE EVERY CITIZEN WITH COMPREHENSIVE HEALTH BENEFITS THAT CAN NEVER BE TAKEN AWAY PRESIDENT CLINTON HAS SET OUT TO CONVINCE THE ONE HUNDRED FIFTY MILLION AMERICANS COVERED BY EMPLOYER SPONSORED HEALTH PLANS THAT HIS PROPOSAL WILL IMPROVE THEIR COVERAGE HE HAS FOCUSED ALMOST ENTIRELY ON THE BIG PICTURE WHAT BENEFITS WOULD BE OFFERED WHAT THEY WOULD COST AND THE MIX OF TAXES AND SPENDING CUTS REQUIRED TO FINANCE THEM VERY LITTLE HAS BEEN SAID ABOUT THE DAY TO DAY REALITY OF HOW MOST AMERICANS WILL CHOOSE AND USE THEIR PLANS FROM THE CONSUMER'S PERSPECTIVE HOWEVER THE VALUE OF THE PLAN DEPENDS ON ITS EASE OF USE WHEN IT IS NEEDED MOST PEOPLE SEE DOCTORS WHEN THEY ARE SICK OR HURT AT THIS STRESSFUL TIME THEY MUST UNDERSTAND NOT ONLY WHAT IS COVERED AND WHAT ISN'T BUT HOW TO USE THE PLAN DIFFICULTY IN GETTING QUESTIONS ANSWERED RIGHT AWAY CAN TURN MINOR FRUSTRATIONS INTO MAJOR GRIEVANCES WILL THE PRESIDENT'S PLAN MAKE IT EASIER OR HARDER FOR PEOPLE TO GET ACCESS TO HEALTH CARE AND USE THEIR BENEFITS AT PRESENT HEALTH INSURANCE IS AN EMPLOYEE BENEFIT WITH EMPLOYEES RECEIVING ADMINISTRATIVE SUPPORT FROM THEIR EMPLOYER IN CHOOSING MANAGING AND RESOLVING PROBLEMS WITH THEIR HEALTH COVERAGE THE COMPANY HUMAN RESOURCES DEPARTMENT EVALUATES AVAILABLE HEALTH PLANS AND SELECTS THE PLAN OR PLANS MANY EMPLOYERS OFFER A CHOICE THAT PROVIDE THE BEST COVERAGE FOR THE MOST REASONABLE COST COMPANIES DO THIS BECAUSE THEY ARE CONTRIBUTING TO OR PAYING ENTIRELY FOR THE COST OF COVERAGE AND WANT TO SPEND THE MONEY WISELY THEY ALSO WANT TO OFFER A COMPETITIVE BENEFIT THAT WILL ATTRACT AND RETAIN GOOD EMPLOYEES TO HELP EMPLOYEES USE THEIR HEALTH PLANS EFFECTIVELY MOST COMPANIES EXPLAIN THE PLANS THROUGH DETAILED COMMUNICATION CAMPAIGNS COMPANIES ALSO MAKE SURE EMPLOYEES GET ASSISTANCE WITH QUESTIONS AND PROBLEMS AS THEY ARISE SUCH AS WHAT TREATMENTS ARE COVERED HOW TO PRE CERTIFY A HOSPITAL STAY AND HOW TO RESOLVE INCORRECTLY PAID CLAIMS UNDER THE CLINTON PLAN THE SCENARIO WILL BE VASTLY DIFFERENT EVERY COMPANY WITH FEWER THAN FIVE THOUSAND FULL TIME EMPLOYEES WILL HAVE TO JOIN A STATE CHARTERED REGIONAL HEALTH ALLIANCE THE SOLE HEALTH INSURANCE PURCHASING AGENT FOR ITS MEMBERS OVER NINETY PERCENT OF THE WORK FORCE WILL BE MEMBERS OF SUCH ALLIANCES WHICH WILL HAVE VIRTUAL MONOPOLY BUYING POWER IN THEIR REGIONS THE EMPLOYER EMPLOYEE HEALTH INSURANCE LINK WILL BE SEVERED SINCE COMPANIES WILL BE PAYING PREMIUMS ONLY TO AN ALLIANCE TO ESTABLISH QUOTE SUFFICIENT QUOTE BUYING POWER MOST STATES WILL CHARTER ONE OR A FEW NONCOMPETING ALLIANCES EACH COVERING SEVERAL HUNDRED THOUSAND PERHAPS MILLIONS OF PEOPLE IN ADDITION STATES WILL HAVE THE OPTION OF ADOPTING A SINGLE PAYER APPROACH BUYING COVERAGE FOR ALL RESIDENTS AND GIVING THEM NO ALTERNATIVE TO THE STATE PLAN THUS ALMOST EVERYONE WILL OBTAIN COVERAGE THROUGH A LARGE STATE AND FEDERALLY REGULATED BUREAUCRACY CHOOSING A PLAN WILL BE A CHALLENGE A TYPICAL REGIONAL HEALTH ALLIANCE WILL OFFER NUMEROUS PLANS PERHAPS DOZENS FROM THREE GENERAL TYPES FEE FOR SERVICE H. M. O. AND A HYBRID THAT PAYS H. M. O. STYLE BENEFITS INSIDE THE PROVIDER NETWORK BUT PERMITS OUT OF NETWORK USE YOU WILL PICK YOUR HEALTH PLANS DURING THE REGIONAL HEALTH ALLIANCE'S ANNUAL OPEN ENROLLMENT PERIOD EACH ALLIANCE WILL PUBLISH A GIANT RATE SHEET DISPLAYING THE COST OF THE VARIOUS PLANS IF YOUR EMPLOYER OFFERS ANY BENEFITS BEYOND THE STANDARD PACKAGE STIPULATED BY THE ALLIANCE MANY EMPLOYERS PARTICULARLY THOSE WITH COLLECTIVE BARGAINING AGREEMENTS UNDOUBTEDLY WILL THE RATE INFORMATION WILL BE SUPPLEMENTED BY A SEPARATE COMMUNICATION FROM YOUR COMPANY TO HELP YOU CHOOSE THE ALLIANCE WILL PUBLISH STANDARD DATA ON THE QUALITY OF EACH HEALTH PLAN BUT BECAUSE MEASURING THE QUALITY OF EACH PLAN ISN'T YET A WELL DEVELOPED SKILL IT IS LIKELY THAT ONLY SOME BASIC STATISTICS ON CONSUMER SATISFACTION WILL BE REPORTED IF IT TURNS OUT THAT THE PLAN YOU WANT IS OVERSUBSCRIBED YOU WILL BE FORCED TO SELECT A DIFFERENT PLAN THAT MAY NOT BE TO YOUR LIKING SOUND CONFUSING IT IS SURE TO BE MOST PEOPLE WILL HAVE TO CHOOSE FROM DOZENS OF PLANS AT DIFFERENT PRICES WITH VERY LITTLE GUIDANCE ABOUT WHAT CRITERIA TO USE IN MAKING THEIR CHOICE BUT DON'T WORRY IF YOU HAVE A QUESTION YOU CAN CALL THE ALLIANCE OMBUDSMAN'S OFFICE FOR HELP PROBLEMS AND DISPUTES WILL BE RESOLVED THROUGH AN ELABORATE BUREAUCRATIC PROCESS BEGINNING IN A COMPLAINT REVIEW OFFICE WHICH EACH STATE MUST SET UP IF YOUR CLAIM IS PAID INCORRECTLY OR YOU ARE DENIED COVERAGE FOR TREATMENT YOU BELIEVE YOU ARE ENTITLED TO YOU MUST CALL THE COMPLAINT REVIEW OFFICE TO LODGE A GRIEVANCE IF YOU DON'T RECEIVE SATISFACTION FROM THE THREE LEVELS OF HEARINGS MANDATED AT THE ALLIANCE LEVEL YOU MAY APPEAL TO A NEW FEDERAL AGENCY THE FEDERAL HEALTH PLAN REVIEW BOARD IF THIS SOUNDS LIKE DEALING WITH THE DEPARTMENT OF MOTOR VEHICLES IT SHOULD THE ALARMING FACT IS THAT THE MAJORITY OF AMERICANS WHO NOW GET THEIR EMPLOYER'S HELP IN PURCHASING AND MANAGING HEALTH INSURANCE WILL BECOME UNDER THE CLINTON PLAN SUPPLICANTS OF A LARGE GOVERNMENT BUREAUCRACY THAT IS MUCH LESS LIKELY TO BE RESPONSIVE TO THEIR CONCERNS MANY PEOPLE BELIEVE UNIVERSAL HEALTH CARE COVERAGE IS A WORTHY GOAL AND THEY WOULD EVEN AGREE TO PAY MORE IN TAXES OR PREMIUMS TO ACHIEVE IT BUT THEY WILL EVALUATE THE CLINTON PLAN AT LEAST IN PART ON WHETHER IT EASES OR COMPLICATES THEIR ACCESS TO AND USE OF BENEFITS IF THEY SENSE THEY ARE EXCHANGING AN IMPERFECT BUT ESSENTIALLY WORKABLE BENEFIT FOR A HOPELESSLY TANGLED BUREAUCRATIC PROCESS THEY WILL JUDGE THE CLINTON PLAN HARSHLY THIS POTENTIAL ADMINISTRATIVE NIGHTMARE CAN BE AVOIDED ALTERNATIVE PROPOSALS WOULD ALLOW ALL BUT THE SMALLEST COMPANIES TO OPT OUT OF A REGIONAL ALLIANCE AND THEY WOULD ESTABLISH COMPETING ALLIANCES IN EACH REGION THIS WOULD GIVE THE SMALLEST BUSINESSES THE GROUP BUYING POWER THEY NEED AND A CHOICE OF ALLIANCES WHILE PRESERVING WHAT MOST AMERICANS NOW ENJOY GOOD BENEFITS THAT ARE EASY TO USE MR. BILLET IS A PRINCIPAL AT A. FOSTER HIGGINS AND COMPANY AN EMPLOYEE BENEFITS CONSULTING FIRM IN STAMFORD CONNECTICUT A GROUND BATTLE HAS ERUPTED AT U. S. AIR WITH THREE MAJOR UNIONS FIGHTING TO REPRESENT THIRTEEN THOUSAND FIVE HUNDRED OF THE CARRIER'S GROUND WORKERS IN ONE OF THE BIGGEST CONTESTS IN YEARS THE THREE WAY BATTLE SHOWS HOW ANXIOUS ORGANIZED LABOR IS TO SIGN UP NEW MEMBERS AFTER YEARS OF DECLINE IT ALSO ILLUSTRATES THAT THE UNIONS BELIEVE U. S. AIR IS VULNERABLE DUE TO RECENT LAYOFFS AND WAGE AND BENEFIT CONCESSIONS AT THE AIRLINE A UNIT OF U. S. AIR GROUP INCORPORATED OF ARLINGTON VIRGINIA ALL THREE UNIONS HAVE SEEN SUBSTANTIAL DROPS IN MEMBERSHIP SINCE THE NINETEEN SEVENTIES AND PLACE THE U. S. AIR CAMPAIGNS AMONG THEIR HIGHEST PRIORITIES THIS YEAR QUOTE THIS IS A BIG ONE QUOTE GEORGE KOURPIAS PRESIDENT OF THE MACHINISTS UNION SAID IN AN INTERVIEW THIS WEEK THE STEELWORKERS CLAIMED THAT SIXTY PERCENT OF THE FLEET SERVICE WORKERS HAD SIGNED AUTHORIZATION CARDS AND ASKED U. S. AIR CHAIRMAN SETH SCHOFIELD TO WAIVE AN ELECTION AND RECOGNIZE THE UNION A U. S. AIR SPOKESWOMAN SAID YESTERDAY THE AIRLINE IS REJECTING THAT REQUEST BECAUSE IT'S UP TO AN EMPLOYEES' VOTE TO DETERMINE A UNION UNIONS HAVE STRUCK OUT IN RECENT ATTEMPTS TO ORGANIZE U. S. AIR'S FLEET SERVICE EMPLOYEES ONE OF THE LAST BIG PLUMS IN THE HEAVILY ORGANIZED AIRLINE INDUSTRY THE TEAMSTERS HAVE REPRESENTED FLEET SERVICE WORKERS AT U. S. AIR UNITS IN THE PAST BUT LOST A REPRESENTATION ELECTION IN NINETEEN NINETY THE STEELWORKERS UNION WHICH IS BASED IN PITTSBURGH SITE OF U. S. AIR'S BIGGEST HUB NARROWLY LOST A NINETEEN NINETY TWO ELECTION ALTHOUGH IT PREVAILED IN A VOTE AGAINST THE MACHINISTS THE STEELWORKERS FAILED TO GET THE MAJORITY TURNOUT REQUIRED BY THE NATIONAL MEDIATION BOARD WHICH OVERSEES TRANSPORATION LABOR RELATIONS IN PLANNING TO FILE WITH THE BOARD FOR ANOTHER ELECTION AS SOON AS POSSIBLE THE UNIONS ARE SHOWING THAT THEY BELIEVE THE OUTCOME WILL BE DIFFERENT THIS TIME BUT EVEN BEFORE THE FILINGS THE UNIONS ARE JOCKEYING FOR POSITION TEAMSTERS PRESIDENT RON CAREY KICKS OFF HIS UNION'S CAMPAIGN TODAY WITH A NEWS CONFERENCE AND RALLY IN WASHINGTON D. C. HE'S LIKELY TO BOAST THAT THE TEAMSTERS ARE BACK WITH A REFORMED DEMOCRATIC UNION THAT ALREADY REPRESENTS WORKERS AT NORTHWEST AIRLINES AND SOUTHWEST AIRLINES THE STEELWORKERS CLAIMING THEY HAVE THE MOST SIGNED AUTHORIZATION CARDS ASKED THE OTHER TWO UNIONS TO BOW OUT A REQUEST THAT WAS QUICKLY REJECTED THE MACHINISTS MEANWHILE NOTE THAT THEY ARE THE LARGEST AIRLINE UNION WITH ONE HUNDRED FIVE THOUSAND MEMBERS IN THE INDUSTRY INCLUDING EIGHT THOUSAND MECHANICS AT U. S. AIR ALL THREE UNIONS ARE USING U. S. AIR'S RECENT CUTBACKS AS A WEAPON AGAINST THE CARRIER LAYOFFS ANNOUNCED IN SEPTEMBER ARE CLAIMING THE JOBS OF SOME ONE THOUSAND EIGHT HUNDRED NON UNION GROUND WORKERS WHILE UNIONIZED PILOTS FLIGHT ATTENDANTS AND MECHANICS HAVE JOB SECURITY CLAUSES IN THEIR CONTRACTS IT'S CRYSTAL CLEAR TO THESE WORKERS THAT WHEN YOU'RE NON UNION YOU'RE FIRST IN LINE TO MAKE SACRIFICES SAID BOB CALLAHAN WHO HEADS THE ORGANIZING DRIVE FOR THE STEELWORKERS PRUDENTIAL SECURITIES INCORPORATED'S LIMITED PARTNERSHIP WOES AREN'T OVER FOR AT LEAST ONE BROKER AT THE FIRM IN AN UNUSUAL ACTION THE NEW YORK STOCK EXCHANGE BARRED A PRUDENTIAL BROKER FROM SELLING LIMITED PARTNERSHIPS FOR THREE YEARS FOR ALLEGEDLY MAKING UNSUITABLE TRADES FOR CUSTOMERS THE CENSURE OF STEPHEN ZIOMEK FORTY THREE YEARS OLD COMES AS THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT SEEKS TO GET PAST ITS PARTNERSHIP PROBLEMS PRUDENTIAL THE NATION'S FOURTH LARGEST BROKERAGE FIRM IN OCTOBER AGREED TO PAY AT LEAST THREE HUNDRED SEVENTY ONE MILLION DOLLARS IN RESTITUTION AND FINES TO SETTLE PARTNERSHIP FRAUD CHARGES BROUGHT BY FEDERAL AND STATE REGULATORS THE BIG BOARD TYPICALLY DOESN'T HANDLE PARTNERSHIP CASES EXCHANGE OFFICIALS SAY THOSE DISPUTES OFTEN ARE HEARD BY THE SECURITIES AND EXCHANGE COMMISSION OR THE NATIONAL ASSOCIATION OF SECURITIES DEALERS BECAUSE MANY OF THE PARTNERSHIPS WERE SOLD OVER THE COUNTER QUOTE THIS IS JUST ONE THAT CAME OUR WAY QUOTE A BIG BOARD OFFICIAL SAID THE BIG BOARD HEARING PANEL FOUND THAT MR. ZIOMEK MADE UNSUITABLE PURCHASES OF PARTNERSHIPS ON BEHALF OF FOUR CUSTOMERS IN ONE INSTANCE ZIOMEK WAS ADVISED BY THE CUSTOMER THAT SHE HAD BOTH AN ANNUAL SALARY AND LIQUID ASSETS OF LESS THAN TWENTY THOUSAND DOLLARS THE EXCHANGE SAID MR. ZIOMEK WHO HAS A NONPUBLISHED TELEPHONE NUMBER IN SCOTTSDALE ARIZONA COULDN'T BE REACHED FOR COMMENT HE CONSENTED TO THE BIG BOARD FINDINGS WITHOUT ADMITTING OR DENYING GUILT MR. ZIOMEK ISN'T CURRENTLY IN OUR BRANCH OFFICE PRUDENTIAL SAID IN A STATEMENT WE'RE EXAMINING THE SITUATION CLOSELY MR. ZIOMEK WAS BARRED FROM DOING BUSINESS FOR FOUR WEEKS IN ADDITION TO THE THREE YEAR BAR ON PARTNERSHIP PURCHASES OR SALES IN ENTERING THE ORDER THE EXCHANGE SAID IT CONSIDERED ZIOMEK'S AGREEMENT TO PERSONALLY REIMBURSE TWO CUSTOMERS FIVE THOUSAND DOLLARS EACH TO COVER THE LOSSES IN THEIR PARTNERSHIP ACCOUNTS SEPARATELY PRUDENTIAL HAS AGREED TO REIMBURSE BROKERS IN TEXAS FOLLOWING AN ACCORD WITH TEXAS REGULATORS THAT TEMPORARILY BARS THE FIRM FROM OPENING NEW BROKERAGE ACCOUNTS IN THE STATE AS REPORTED PRUDENTIAL AGREED UNDER THE SETTLEMENT TO BE SUSPENDED FROM SOLICITING OR ACCEPTING NEW BROKERAGE BUSINESS FOR FIVE BUSINESS DAYS PRUDENTIAL'S NORTH DALLAS OFFICE WON'T BE ALLOWED TO ENGAGE IN THE SAME ACTIVITIES FOR TWENTY BUSINESS DAYS PRUDENTIAL SAID THE TWO PERIODS WILL RUN CONCURRENTLY STARTING JANUARY THIRTY FIRST PRUDENTIAL SAID IT WILL PAY ITS TEXAS BROKERS FIVE PERCENT OF THEIR AVERAGE MONTHLY COMPENSATION FOR THE PAST TWELVE MONTHS THIS MEANS THAT A ONE HUNDRED TWENTY THOUSAND DOLLAR PRODUCER WILL RECEIVE A FIVE HUNDRED DOLLAR CHECK FOR THE LOST TIME PRUDENTIAL SAYS BROKERS IN PRUDENTIAL'S NORTH DALLAS OFFICE WILL RECEIVE TWENTY PERCENT OF THEIR AVERAGE MONTHLY COMPENSATION IT WAS UNFAIR TO PUT THE BURDEN OF SANCTIONS ON BROKERS MOST OF WHOM WEREN'T AT THE FIRM WHEN THE PARTNERSHIP ABUSES OCCURRED A PRUDENTIAL SPOKESMAN SAID CHEVRON CORPORATION INTENT ON MAINTAINING ITS COST CUTTING MOMENTUM BY SAVING AN ADDITIONAL TWO HUNDRED FIFTY MILLION DOLLARS THIS YEAR IS EXPECTED TO ANNOUNCE PLANS TODAY TO CONSOLIDATE AND SHRINK ITS U. S. OPERATIONS FURTHER AS PART OF ITS LONG TERM STRATEGY WHICH ALSO SEEKS TO COMBINE RIGOROUS OVERHEAD REDUCTIONS WITH STEPPED UP GROWTH OVERSEAS CHEVRON YESTERDAY SAID IT WAS RAISING ITS QUARTERLY DIVIDEND FOR THE SIXTH TIME IN AS MANY YEARS TO NINETY TWO POINT FIVE CENTS A SHARE FROM EIGHTY SEVEN POINT FIVE CENTS PAYABLE MARCH TENTH TO STOCK OF RECORD FEBRUARY TENTH IT ALSO SAID STOCKHOLDERS WILL BE ASKED TO APPROVE A TWO FOR ONE STOCK SPLIT AT THE ANNUAL MEETING IN MAY CHEVRON SHARES CLOSED YESTERDAY AT NINETY TWO DOLLARS OFF FIFTY CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE NEWS OF THE STOCK SPLIT AND DIVIDEND INCREASE WAS ANNOUNCED JUST BEFORE THE END OF NORMAL TRADING HOURS WHILE THE COST CUTS WILL RANGE FROM PERSONNEL REDUCTIONS IN ITS STRUGGLING CHEMICAL BUSINESS TO ANTICIPATED FURTHER SHRINKAGE OF PRIMARILY DOMESTIC REFINING MARKETING AND EXPLORATION OPERATIONS THEY DON'T ENTAIL THE KIND OF EXTENSIVE WORK FORCE REDUCTIONS OR ASSET SALES CHEVRON HAS CARRIED OUT OVER THE PAST FEW YEARS THOSE HAVE SLASHED ABOUT ONE POINT TWO BILLION DOLLARS FROM OPERATING EXPENSES ON AN ANNUAL BASIS BUT TAKEN TOGETHER ANALYSTS AND INDUSTRY OFFICIALS SAID THE LATEST MOVES ARE SIGNIFICANT BECAUSE THEY SHOW THE COMPANY'S INCREASING EMPHASIS ON USING IMPROVED CASH FLOW TO PURSUE BOTH UPSTREAM EXPLORATION AND DOWNSTREAM REFINING AND MARKETING OPPORTUNITIES MORE AGGRESSIVELY OUTSIDE THE U. S. CHEVRON SPOKESMEN DECLINED TO COMMENT ON WHETHER ANY ANNOUNCEMENT WAS PLANNED FOR TODAY BUT ANALYSTS SAID CHAIRMAN KENNETH DERR WAS SCHEDULED TO HOLD A TELEVISED CONFERENCE WITH THOUSANDS OF EMPLOYEES AROUND THE WORLD PORTIONS OF THE COST CUTTING PLAN BEGAN LEAKING OUT EVEN AS OFFICIALS AT THE COMPANY'S SAN FRANCISCO HEADQUARTERS ANNOUNCED THE DIVIDEND RELATED BOARD DECISIONS CHEVRON'S SPECIALTY CHEMICALS DIVISION FOR INSTANCE QUIETLY INFORMED EMPLOYEES ON TUESDAY THAT IT INTENDS TO CUT ABOUT FIVE HUNDRED JOBS OR NEARLY TEN PERCENT OF THE WORK FORCE OVER THE NEXT THREE YEARS MOSTLY AS A RESULT OF PLANT CLOSINGS OR SALES THE ROUGHLY ONE HUNDRED MILLION DOLLARS SAVING FROM THOSE STEPS APPEARS TO BE ON TOP OF THE ROUGHLY TWO HUNDRED FIFTY MILLION DOLLAR COST SAVINGS ESTIMATE ANALYSTS USED FOR THE COMPANY'S CORE OIL AND NATURAL GAS OPERATIONS PAUL TING AN OIL INDUSTRY ANALYST WITH OPPENHEIMER AND COMPANY SAID THE STEPS CHEVRON EXECUTIVES HAVE TELEGRAPHED IN THE PAST FEW DAYS SUGGEST THAT THE OIL CONCERN'S COSTS COULD DROP BY AS MUCH AS THIRTY CENTS A BARREL BY THE END OF THE YEAR THE COMPANY'S COSTS HAVE DROPPED TO SIX DOLLARS AND FIFTY ONE CENTS A BARREL FROM MORE THAN SEVEN DOLLARS AND FORTY CENTS TWO YEARS AGO CHEVRON'S STRATEGY QUOTE CERTAINLY SHOWS THAT THE THEME OF COST REDUCTIONS BY BIG OIL IS FAR FROM OVER QUOTE ACCORDING TO MR. TING CHEVRON'S MR. DERR WHO IN THE PAST FIVE YEARS HAS GUIDED THE COMPANY FROM BEING ONE OF THE INDUSTRY'S HIGHEST COST PRODUCERS TO A POSITION OF ROUGH PARITY WITH THE COMPETITION HAS STRESSED THE IMPORTANCE OF FOCUSING ON LONG TERM GROWTH A MAJOR ELEMENT OF ANY FUTURE EXPANSION IS ABOUT ONE BILLION DOLLARS IN CASH CURRENTLY BEING GENERATED BY DOMESTIC EXPLORATION AND DEVELOPMENT OPERATIONS FOR THE REST OF THE NINETEEN NINETIES MR. DERR SAID IN AN INTERVIEW BEFORE YESTERDAY'S ANNOUNCEMENT CHEVRON'S GOAL WON'T BE JUST TO SQUEEZE YOUR COSTS AND WATCH THEM COME BACK TWELVE MONTHS LATER WHICH IS HISTORICALLY WHAT ALL THE MAJOR OIL COMPANIES HAVE DONE RATHER THE CHAIRMAN SAID MANAGEMENT WANTS TO MAKE SURE THE SAVINGS ARE PERMANENT AND THE COMPANY HE ADDED IS PURSUING A VARIETY OF WAYS TO SHIFT MORE FROM A RESTRUCTURING TO A GROWTH MODE BY FOCUSING ON INTERNATIONAL VENTURES BY NINETEEN NINETY FIVE CHEVRON HAS TOLD ANALYSTS ONLY ABOUT TWENTY PERCENT OF THE COMPANY'S TOTAL CAPITAL WILL BE DEVOTED TO U. S. EXPLORATION AND DEVELOPMENT ABOUT HALF OF WHAT IT WAS IN NINETEEN NINETY IN TODAY'S ANNOUNCEMENT CHEVRON ALSO IS EXPECTED TO INDICATE THAT ITS OVERALL CAPITAL BUDGET WILL REMAIN ROUGHLY UNCHANGED FROM CURRENT LEVELS BUT SPENDING ON KEY OFFSHORE BUSINESS RANGING FROM ENHANCED PRODUCTION IN INDONESIA AND AFRICA TO NEW OR EXPANDED REFINERIES IN THE PACIFIC ALREADY HAS CLIMBED SHARPLY THOUGH CHEVRON OFFICIALS PUBLICLY SUGGESTED IN THE PAST THAT FURTHER PERSONNEL CUTS WERE POSSIBLE FROM THE CHEMICAL OPERATION THEY STAYED AWAY FROM TELLING EVEN ANALYSTS ABOUT MORE WIDE RANGING CUTS UNTIL JUST THE PAST FEW DAYS ACCORDING TO MR. TING EXECUTIVES INDICATED THIS WEEK THAT THE NEWEST VERSION OF CHEVRON'S STRATEGIC PLAN ENVISIONS A ROUGHLY FIVE PERCENT ANNUAL INCREASE IN WORLD WIDE LIQUIDS PRODUCTION THROUGH MOST OF THE REST OF THE DECADE A CHEVRON SPOKESMAN SAID THE COMPANY HAS THREE HUNDRED TWENTY FIVE MILLION SHARES OUTSTANDING IF APPROVED THE STOCK SPLIT WILL BE EFFECTIVE MAY ELEVENTH TO SHARES OF RECORD ON THAT DATE THE ADDITIONAL SHARES WILL BE PAYABLE JUNE TENTH STOCKHOLDERS ALSO WILL BE ASKED TO DOUBLE TO ONE BILLION THE NUMBER OF AUTHORIZED SHARES ADVANCED MICRO DEVICES INCORPORATED LOOSENING INTEL CORPORATION'S MONOPOLY OVER A CENTRAL PIECE IN PERSONAL COMPUTERS SAID IT WILL SUPPLY MICROCHIPS TO COMPAQ COMPUTER CORPORATION ONE OF INTEL'S BIGGEST CUSTOMERS THE DEAL BOOSTS ADVANCED MICRO WHICH MAKES MICROCHIPS THAT ARE COMPATIBLE WITH INTEL'S FLAGSHIP FOUR EIGHT SIX CHIP THE PROCESSOR INSIDE TODAY'S MOST POPULAR P. C.S QUOTE THIS IS A WATERSHED AGREEMENT QUOTE SAID W. J. SANDERS THE THIRD ADVANCED MICRO'S CHIEF EXECUTIVE OFFICER WE'VE FINALLY GOTTEN THE ENDORSEMENT OF ONE OF THE BIG P. C. MAKERS HE SAID INTEL MEANWHILE WILL CONTINUE AS COMPAQ'S PRINCIPAL SUPPLIER WITH ADVANCED MICRO SERVING AS A HEDGE AGAINST SUPPLY SHORTAGES THAT HAVE PLAGUED INTEL IN THE PAST YOU NEVER KNOW WHEN THERE'S GOING TO BE A HICCUP SAID KEVIN BOHREN A COMPAQ VICE PRESIDENT AFTER ADVANCED MICRO'S ANNOUNCEMENT YESTERDAY ITS SHARES JUMPED SIXTY TWO POINT FIVE CENTS TO TWENTY POINT SIX TWO FIVE DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING INTEL SHARES SAGGED ONE DOLLAR AND FIFTY CENTS TO SIXTY THREE POINT SIX TWO FIVE DOLLARS IN NASDAQ STOCK MARKET TRADING ADVANCED MICRO'S RAID COMES AS CHALLENGES TO INTEL'S REIGN OVER P. C. MICROCHIPS ARE MORE NUMEROUS AND SERIOUS THAN AT ANY TIME SINCE THE ADVENT OF THE P. C. MORE THAN A DECADE AGO A COALITION OF APPLE COMPUTER INCORPORATED INTERNATIONAL BUSINESS MACHINES CORPORATION AND MOTOROLA INCORPORATED PLANS TO SHIP P. C.S USING A NON INTEL MICROCHIP LATER THIS YEAR MICROSOFT CORPORATION WHICH SETS THE STANDARD FOR P. C. SOFTWARE RECENTLY RELEASED A VERSION OF ITS STANDARD THAT FOR THE FIRST TIME WORKS ON NON INTEL CHIPS ADVANCED MICRO HAS BATTLED FOR YEARS TO GAIN GROUND ON INTEL FACING LAWSUITS AND CUSTOMER SKEPTICISM IN THE PROCESS INDEED MR. SANDERS SPOKE TO REPORTERS YESTERDAY DURING A RECESS OF THE LATEST TRIAL BETWEEN HIS COMPANY AND INTEL WHICH HAS REPEATEDLY THOUGH SO FAR UNSUCCESSFULLY SUED ADVANCED MICRO OVER COPYCAT ALLEGATIONS THIS DEAL WITH COMPAQ REMOVES ANY LEGITIMATE REASON NOT TO BUY CHIPS FROM US MR. SANDERS SAID OTHERS AREN'T SO SURE TO START WITH COMPAQ HAS PLEDGED TO SATISFY JUST AN UNSPECIFIED FRACTION OF ITS MICROCHIP NEEDS THROUGH ADVANCED MICRO WHILE MR. SANDERS SAID THAT COMPAQ WILL BECOME THE COMPANY'S LARGEST CUSTOMER WITHIN A YEAR HE PROVIDED NO SALES FORECASTS INITIALLY COMPAQ COULDN'T GET SUFFICIENT NUMBERS OF INTEL'S NEWEST MICROCHIP THE PENTIUM IT'S NOT A PRICING ISSUE MR. BOHREN SAID IT'S JUST GOOD BUSINESS TO ADD MULTIPLE SUPPLIERS MOST OTHER BIG P. C. MAKERS SEEM LIKELY TO REMAIN LOYAL TO INTEL WHICH IS THEIR SOLE SUPPLIER DELL COMPUTER CORPORATION FOR INSTANCE HAS NO IMMEDIATE PLANS TO FOLLOW COMPAQ'S LEAD QUOTE THE INTEL BRAND CARRIES A LEVEL OF AWARENESS THAT'S VALUABLE QUOTE SPOKESMAN DEAN KLINE SAID WE DON'T SEE ANY NEED TO MAKE ANY KIND OF CHANGE YET MR. SANDERS VOWED TO GRAB ANOTHER MAJOR INTEL CUSTOMER BEFORE THE YEAR IS OUT WHILE INTEL DOWNPLAYED THE THREAT THE COMPANY FELT THE STING OF COMPAQ'S PARTIAL DEFECTION OBVIOUSLY I'M DISAPPOINTED SAID PAUL OSTELLINI INTEL'S SENIOR VICE PRESIDENT MR. OSTELLINI DESCRIBED THE DEAL AS AN ISOLATED INSTANCE SAYING ADVANCED MICRO HAD SECURED ONE BIG FISH WHILE ALLOWING THAT INTEL'S RIVAL MIGHT PICK UP A FEW OTHER CUSTOMERS HE SAID THAT IT REMAINS TO BE SEEN WHETHER ADVANCED MICRO CAN DELIVER OVER TIME SIERRA ON LINE INCORPORATED BELLEVUE WASHINGTON RICHARD A. GELHAUS RESIGNED AS CHIEF FINANCIAL OFFICER OF THIS MAKER OF ENTERTAINMENT SOFTWARE NO PERMANENT SUCCESSOR WAS NAMED THE COMPANY SAID FRED SCHAPELHOUMAN ITS CORPORATE COUNSEL WILL ASSUME ALL ASPECTS OF FINANCIAL REPORTING ON AN ACTING BASIS AND FOLLOW ITS OWN PERVERSE MIND WOULD MEAN ITS RAM NOW IS FORGETFUL WE ALL WOULD THE FUTURE ILLUMINE ON SOMETHING NO BETTER THAN HUMAN AS PRESIDENT CLINTON TRIES TO SELL HIS HEALTH CARE REFORM BILL TO LAWMAKERS AND THE PUBLIC THIS YEAR THE AMERICAN ASSOCIATION OF RETIRED PERSONS WILL BE WATCHING AND RESPONDING THIS IS A GROUP THAT WASHINGTON IS AFRAID TO IGNORE AND MY HOW THE ASSOCIATION GREW THE A. A. R. P. NOW HAS THIRTY THREE MILLION MEMBERS AS PETER PETERSON A FORMER SECRETARY OF COMMERCE AND A CRITIC OF SOME A. A. R. P. ATTITUDES WRITES IN A RECENT BOOK ITS MEMBERSHIP INCLUDES QUOTE ONE IN EVERY FOUR REGISTERED U. S. VOTERS AND IS BIGGER THAN ANY OTHER ORGANIZATION IN AMERICA ASIDE FROM THE CATHOLIC CHURCH QUOTE OTHER SERVICES ARRANGED BY A. A. R. P. BUT PROVIDED BY OUTSIDE FIRMS INCLUDE GROUP HEALTH INSURANCE CAR AND HOMEOWNERS INSURANCE MOBILE HOME INSURANCE AN INVESTMENT PROGRAM FEATURING MUTUAL FUNDS A VISA CARD PROGRAM A TRAVEL PROGRAM RENTAL CAR AND HOTEL DISCOUNTS AND EVEN EMERGENCY ROAD SERVICE A. A. R. P. STAFF MEMBERS HOWEVER SAY FIRMLY THAT SERVICE WHILE IT MAY BE THE BEGINNING IS NOT THE END FOR THE ASSOCIATION ADVOCACY GOES RIGHT ALONG WITH THE SERVICE SAYS ELLIOT CARLSON EDITOR OF THE A. A. R. P. BULLETIN A NEWSPAPER PUBLISHED EVERY MONTH EXCEPT AUGUST IT'S THE ADVOCACY PART OF A. A. R. P.'S MISSION THAT WORRIES MR. PETERSON AND OTHER CRITICS OF THE ASSOCIATION WHEN A. A. R. P. SPEAKS HE SAYS IT SPEAKS LOUD AND CLEAR IN MY DEFICIT FIGHTING BATTLES OF THE NINETEEN EIGHTIES I LEARNED JUST HOW MUCH WASHINGTON LISTENS CONVENIENTLY THE ASSOCIATION IS HEADQUARTERED IN WASHINGTON BETWEEN NOW AND THE YEAR TWO THOUSAND FORTY MR. PETERSON NOTES THE SHARE OF THE POPULATION THAT IS SIXTY FIVE AND OVER IS EXPECTED TO GROW FROM THIRTEEN PERCENT TO TWENTY PERCENT WITH A CORRESPONDING DROP IN THE SHARE OF YOUNGER AMERICANS A LARGE PART OF FEDERAL SPENDING ALREADY GOES FOR SOCIAL SECURITY AND MEDICARE PAYMENTS TO THE ELDERLY WHETHER THEY NEED SUCH PAYMENTS OR NOT AND THE SPENDING IS IN LARGE PART FINANCED BY YOUNGER WORKING PEOPLE MR. PETERSON THINKS THAT SUCH PAYMENTS SHOULD BE GRADUALLY SUBJECTED TO A MEANS TEST IF YOU NEED IT YOU GET IT IF YOU DON'T NEED IT YOU DON'T GET IT IF ANY MEMBER OF CONGRESS SHOULD PROPOSE SUCH MEANS TESTS IT'S CLEAR THAT THE A. A. R. P. WOULD FIRMLY OPPOSE THEM C. B. S. RECENTLY DEVOTED A SEGMENT OF SIXTY MINUTES TO MR. PETERSON'S PROPOSAL AND JOHN ROTHER THE A. A. R. P. LEGISLATIVE DIRECTOR WAS BOTH CLEAR AND CONCISE HE WAS ASKED IF THE ASSOCIATION WOULD OPPOSE MR. PETERSON'S PLAN AND HE RESPONDED SURE THE ASSOCIATION'S POSITION IS THAT THE PETERSON PROPOSAL IS AN ATTACK ON THE WHOLE IDEA OF SOCIAL INSURANCE THE A. A. R. P. CONTENDS THAT MOST GOVERNMENT ENTITLEMENTS GO TO THE QUOTE NEAR POOR QUOTE WHO THE ASSOCIATION FIGURES EARN TEN THOUSAND DOLLARS OR LESS A YEAR GOVERNMENT FIGURES HOWEVER INDICATE THAT NEARLY HALF OF ALL ENTITLEMENTS GO TO PEOPLE EARNING THIRTY THOUSAND DOLLARS TO TWO HUNDRED THOUSAND DOLLARS A YEAR A FULL FLEDGED MEANS TEST IS UNLIKELY TO BE ADOPTED ANYTIME SOON BUT THE GOVERNMENT IS EDGING IN THAT DIRECTION A NEW TAX ON SOCIAL SECURITY PAYMENTS FOR PEOPLE BEYOND A CERTAIN INCOME LEVEL HAS BEEN PASSED AND GOES INTO EFFECT THIS YEAR A MORE IMMINENT QUESTION IS WHAT TO DO ABOUT FEDERAL HEALTH CARE THE A. A. R. P. FEELS A SPECIAL RESPONSIBILITY HERE SINCE ONE OF MS. ANDRUS'S EARLIEST PROBLEMS WAS FINDING A PRIVATE INSURANCE COMPANY THAT WOULD PROVIDE HEALTH INSURANCE FOR RETIRED TEACHERS SHE SUCCEEDED EVENTUALLY BUT THE PROBLEM NOW IS MUCH BIGGER THE A. A. R. P.'S CLOUT STEMS IN LARGE PART FROM A WASHINGTON BELIEF THAT THE ASSOCIATION IS PULLING ALL OR AT LEAST MOST OF ITS THIRTY THREE MILLION MEMBERS BEHIND IT BUT THAT MAY NOT BE SO THE ASSOCIATION HASN'T ENDORSED MR. CLINTON'S HEALTH PLAN BUT ITS BOARD OF DIRECTORS SAYS IT'S THE BEST THAT HAS EMERGED SO FAR IN A STATEMENT THE DIRECTORS SAID WE BELIEVE THE PRESIDENT'S PROPOSAL PROVIDES THE STRONGEST AND MOST REALISTIC BLUEPRINT TO DATE FOR ACHIEVING OUR REFORM GOALS LATE LAST YEAR THE A. A. R. P. COMMISSIONED A RESEARCH GROUP TO POLL ONE THOUSAND TWO HUNDRED SEVENTEEN SCIENTIFICALLY SELECTED AMERICANS AGED EIGHTEEN OR OLDER AND CONCLUDED THAT ONLY THIRTY EIGHT PERCENT OF ADULT AMERICANS UNDERSTAND THE PLAN EITHER VERY WELL OR FAIRLY WELL NONETHELESS A SLIM FIFTY ONE PERCENT MAJORITY APPROVED THE PLAN AT ABOUT THE SAME TIME THE A. A. R. P. BULLETIN ASKED ITS READERS ASSOCIATION MEMBERS ALL FOR THEIR FIRST REACTION TO THE PLAN OF THE TWENTY FIVE THOUSAND READERS WHO RESPONDED AN OVERWHELMING EIGHTY TWO PERCENT OPPOSED THE PLAN AND ONLY SEVENTEEN PERCENT APPROVED THE BULLETIN GOT SOME SALTY COMMENTS TOO EVERYONE WILL PAY MORE FOR THEIR HEALTH CARE AND RECEIVE CARE THAT IS INFERIOR TO WHAT THEY NOW HAVE SAID AL SINNER OF ESTES PARK COLORADO BOB MULTER OF RINDGE N. H. SAID THE SYSTEM AIN'T BROKE AND ANY BIG GOVERNMENT OVERHAUL CAN ONLY MAKE THINGS WORSE THE A. A. R. P. WOULD LIKE TO BE ABLE TO EXPLAIN AWAY THE BULLETIN'S POLL CONSTANCE SWANK THE ASSOCIATION'S RESEARCH DIRECTOR COMMENTS QUOTE PEOPLE WHO TAKE THE TIME TO WRITE ON AN EMERGING PUBLIC POLICY ISSUE AS THE BULLETIN READERS DID TYPICALLY HOLD STRONG VIEWS ON IT THEY'RE PROBABLY NOT A TRUE CROSS SECTION OF THE A. A. R. P. MEMBERSHIP MAYBE NOT BUT THIRTY THREE MILLION MEMBERS IS A LOT OF MEMBERS AND IF YOU WANT TO LEAD THEM YOU'D BETTER BE PRETTY SURE WHERE THEY'RE GOING SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT SAID HIS AGENCY WILL BECOME MORE ACTIVE IN ATTEMPTING TO CURB UNNECESSARY SHAREHOLDER LITIGATION AND MIGHT INTERVENE IN CASES THAT THE AGENCY DEEMS FRIVOLOUS MR. LEVITT SUGGESTED THAT THE AGENCY COULD WEIGH IN ON THE SIDE OF COMPANIES SEEKING TO DISMISS SHAREHOLDERS' LAWSUITS OR SEEKING TO OBTAIN FINES AGAINST PLAINTIFFS' LAWYERS WHO FILE FRIVOLOUS LAWSUITS AND MOTIONS SUCH INVOLVEMENT BY THE S. E. C. WOULD COME IN THE TRIAL PHASE OF LAWSUITS RATHER THAN IN THE APPEALS PHASE WHEN THE AGENCY'S INVOLVEMENT IS MORE TYPICAL QUOTE WE MIGHT ALSO CONSIDER ADVISING COURTS ON THE APPROPRIATENESS OF PROPOSED SETTLEMENTS IN PARTICULAR CASES QUOTE MR. LEVITT SAID IN A SPEECH TO THE SECURITIES REGULATION INSTITUTE IN SAN DIEGO MR. LEVITT'S SPEECH INDICATES A SHIFT IN THE S. E. C.'S ATTITUDE TOWARD SHAREHOLDER LITIGATION SUCH SUITS ARE FILED AGAINST COMPANIES WHEN THEIR ACTIONS ARE DEEMED TO HAVE HURT SHAREHOLDERS' STOCK VALUE THE GROUNDS FOR SUCH SUITS INCLUDE FAILURE TO WARN SHAREHOLDERS OF PRODUCT DELAYS OR OTHER CIRCUMSTANCES THAT COULD AFFECT STOCK PRICES AND MAY EVEN INCLUDE OVERLY OPTIMISTIC EARNINGS REPORTS THE S. E. C. HISTORICALLY HAS VIEWED SUCH SUITS AS AN IMPORTANT SUPPLEMENT TO ITS OWN ENFORCEMENT EFFORTS AND THE AGENCY LAST YEAR PRESENTED CONGRESS WITH DATA SHOWING THAT THE NUMBERS OF SUITS HAVE HELD STEADY SINCE THE NINETEEN SEVENTIES BUT COMPANIES PARTICULARLY START UPS HAVE LONG COMPLAINED THAT THEY ARE PENALIZED BY SHAREHOLDER SUITS WHEN STOCK PRICES MOVE EVEN SLIGHTLY DOWNWARD COMPANIES ALSO COMPLAIN ABOUT PROFESSIONAL PLAINTIFFS WHO BUY STOCK IN INDUSTRY GROUPS SUSCEPTIBLE TO SUDDEN DROPS IN STOCK PRICE AND ABOUT PLAINTIFFS' ATTORNEYS WHO ENCOURAGE SUCH LITIGATION MR. LEVITT SAID THE S. E. C. WOULD SUPPORT FEDERAL LEGISLATION THAT WOULD PROHIBIT LAW FIRMS FROM USING PROFESSIONAL PLAINTIFFS OR OTHERWISE MAINTAINING AN INVENTORY OF SHAREHOLDERS TO SERVE AS NOMINAL PLAINTIFFS IN CLASS ACTION FILINGS IN ADDITION HE SAID THE S. E. C. WOULD SUPPORT EFFORTS TO PROHIBIT EXTRA COMPENSATION FOR LEAD PLAINTIFFS IN CLASS ACTION LAWSUITS IT WOULD ALSO BAR LAWYERS WHO OWN SECURITIES THAT ARE THE SUBJECT OF LITIGATION FROM BEING THE LEAD LAWYERS FOR PLAINTIFFS IN SUCH LAWSUITS LEAD LAWYERS IN CLASS ACTION CASES TYPICALLY REAP A LARGER SHARE OF FEES WITHOUT GOING INTO SPECIFICS TODAY I AM ESPECIALLY INTERESTED IN WAYS TO GIVE SHAREHOLDERS GREATER CONTROL OVER THEIR OWN LITIGATION AND CURB POTENTIAL CONFLICTS OF INTEREST BETWEEN CLASS ACTION LAWYERS AND THE SHAREHOLDERS THEY REPRESENT MR. LEVITT SAID THE S. E. C. WILL ALSO CONTINUE TO SUPPORT LEGISLATIVE EFFORTS TO ELIMINATE THE USE OF THE FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS STATUTE WHICH ALLOWS PLAINTIFFS TO WIN TRIPLE DAMAGES IN SECURITIES CASES ISSUERS AND OTHER MARKET PARTICIPANTS SHOULD NOT BE EXPOSED TO RICO CLAIMS SEEKING TREBLE DAMAGES FOR DISCLOSURE VIOLATIONS HE SAID MR. LEVITT SAID THE S. E. C. WILL ALSO EXAMINE ITS OWN RULE MAKING PROCESS TO SEE IF ITS STATUTES ARE WORDED SO AMBIGUOUSLY AS TO ENCOURAGE LITIGATION MORE SPECIFIC LANGUAGE QUOTE WOULD PROVIDE GREATER CERTAINTY TO BUSINESS TRANSACTIONS AND ALLOW ISSUERS TO AVOID LITIGATION OR AT LEAST TO DISPOSE OF LAWSUITS AT AN EARLY STAGE QUOTE HOPING TO HEAD OFF UKRAINE'S ECONOMIC IMPLOSION AND KEEP A NUCLEAR DISARMAMENT AGREEMENT ON TRACK PRESIDENT CLINTON HAS DECIDED TO DOUBLE U. S. ECONOMIC ASSISTANCE TO UKRAINE AND SEEK CLOSER POLITICAL AND ECONOMIC TIES IN AN AGREEMENT WITH RUSSIA AND THE U. S. EARLIER THIS MONTH UKRAINE'S PRESIDENT LEONID KRAVCHUK PLEDGED TO GIVE UP ALL HIS COUNTRY'S NUCLEAR WARHEADS IN EXCHANGE FOR ECONOMIC ASSISTANCE AND SECURITY ASSURANCES BUT WITH UKRAINE'S ECONOMY CAREENING OUT OF CONTROL THERE HAVE BEEN STRONG DOUBTS ABOUT WHETHER MR. KRAVCHUK COULD OVERRIDE THE OBJECTIONS OF NATIONALIST LEGISLATORS AND LIVE UP TO THAT COMMITMENT U. S. OFFICIALS HOPE THAT BY REACHING OUT TO UKRAINE NOW THEY CAN BOTH ENCOURAGE DESPERATELY NEEDED ECONOMIC REFORMS AND STRENGTHEN MR. KRAVCHUK POLITICALLY UNTIL NOW UKRAINE HAS FAILED TO MAKE ANY ECONOMIC REFORMS AT ALL WITH MONTHLY HYPERINFLATION TOPPING NINETY PERCENT IN DECEMBER AND SECESSIONIST PRESSURES BUILDING AMONG ETHNIC RUSSIANS IN CRIMEA U. S. OFFICIALS HAVE WARNED IN RECENT DAYS THAT UKRAINE COULD FACE ECONOMIC COLLAPSE AND POLITICAL EXPLOSION U. S. OFFICIALS SAY THAT FOR THE SAKE OF THE TREATY AND OF STABILITY IN UKRAINE IT IS TIME FOR THE U. S. TO SEEK CLOSER TIES A DELEGATION OF SENIOR UKRAINIAN OFFICIALS IS IN WASHINGTON THIS WEEK TO DISCUSS HOW FAR THOSE TIES MIGHT GO AS A RESULT OF THOSE TALKS U. S. OFFICIALS SAY THAT THEY EXPECT TO DOUBLE THE CURRENT U. S. COMMITMENT OF ONE HUNDRED FIFTY FIVE MILLION DOLLARS IN ECONOMIC AID AND QUOTE SIGNIFICANTLY INCREASE QUOTE FUNDS FOR DISMANTLING UKRAINE'S NUCLEAR WARHEADS THE U. S. ALSO EXPECTS TO INITIAL A BILATERAL TAX TREATY THIS WEEK A PREREQUISITE FOR ANY U. S. INVESTMENT AND IS ALSO WORKING TOWARD A BILATERAL INVESTMENT TREATY U. S. OFFICIALS SAY BOTH AGREEMENTS WOULD BE SIGNED WHEN PRESIDENT KRAVCHUK MEETS WITH PRESIDENT CLINTON IN WASHINGTON IN MARCH THE U. S. IS ALSO HOPING TO SMOOTH UKRAINE'S RELATIONS WITH THE INTERNATIONAL LENDERS BY HELPING THEM CRAFT A WORKABLE ECONOMIC REFORM PROGRAM ACCORDING TO A SENIOR U. S. OFFICIAL IN TESTIMONY BEFORE THE SENATE EARLIER THIS WEEK R. JAMES WOOLSEY DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY DESCRIBED UKRAINE AS A CRISIS IN THE MAKING HE SAID THAT REFORM HAS BEEN NONEXISTENT IN UKRAINE AND THAT ECONOMIC MISMANAGEMENT AND POLITICAL DRIFT HAD LED TO PROFOUND DISILLUSIONMENT ELLIOT B. ROSS FORTY SEVEN YEARS OLD WAS NAMED CHIEF OPERATING OFFICER AT THIS DESIGNER MAKER AND MARKETER OF PRODUCTS MADE FROM ENGINEERED PLASTICS THE APPOINTMENT IS EFFECTIVE MONDAY MR. ROSS WAS ALSO NAMED EXECUTIVE VICE PRESIDENT OF THE COMPANY AN ESSEF SPOKESMAN SAID BOTH ARE NEW POSITIONS MR. ROSS IS CO CHAIRMAN OF CLEVELAND BASED INVERNESS PARTNERS A PRIVATELY HELD SUPPLIER OF DIE CASTINGS TO THE AUTOMOTIVE INDUSTRY A POSITION HE WILL LEAVE UPON JOINING ESSEF I LIKE PAUL MCCRACKEN'S QUOTE FIRST DO NO HARM QUOTE PHRASE QUOTE UNEMPLOYMENT THE CRISIS CONTINUES QUOTE EDITORIAL PAGE JANUARY SEVENTH PERHAPS BECAUSE I USED IT FOR THE SAME PURPOSE IN A CONTRIBUTION TO A NINETEEN NINETY EDITED VOLUME QUOTE DISSENT ON KEYNES QUOTE BUT HE AND I DIFFER ON THE POLICY IT IMPLIES TO BE QUITE BLUNT ABOUT IT DOING NO HARM REQUIRES A WHOLESALE REJECTION OF AGGREGATE MACROECONOMICS THE PRE KEYNESIANS AND AUSTRIANS WERE RIGHT TO SUPPORT SAY'S LAW FREE MARKET UNEMPLOYMENT IS ALWAYS A PRICING PROBLEM AND NEVER ONE OF INSUFFICIENT AGGREGATE DEMAND GOVERNMENT COULD HELP ONLY IF IT COULD KNOW THE PATTERN OF PRICES THAT IS CONSISTENT WITH INDIVIDUALS' REAL PREFERENCES AS MISES'S AND HAYEK'S WORK ON SOCIALIST ECONOMIC CALCULATION EXPLAINED HOWEVER THERE IS NO SOURCE OF KNOWLEDGE OF INDIVIDUALS' PREFERENCES EXCEPT THE OBSERVATION OF THEIR CHOICES IN A FREE MARKET FINALLY IS IT NOT CLEAR THAT MR. MCCRACKEN'S EXCELLENT ANALYSIS OF LABOR MARKETS HAMSTRUNG BY GOVERNMENT UNCERTAINTY DESCRIBES THOSE OF THE U. S. BUT NOT OF CAPITALISM U. S. BANKNOTE CORPORATION SAID ITS CHIEF EXECUTIVE MORRIS WEISSMAN WILL ASSUME THE DUTIES OF PRESIDENT AND CHIEF OPERATING OFFICER AFTER THE SUDDEN RETIREMENT OF STANLEY KREITMAN A SPOKESWOMAN FOR THE COMPANY SAID THAT MR. KREITMAN'S DEPARTURE WAS UNEXPECTED AND THAT HIS CONTRACT AT U. S. BANKNOTE WOULD HAVE EXPIRED AT THE END OF DECEMBER NINETEEN NINETY SIX HE WILL CONTINUE AS A CONSULTANT TO THE COMPANY THE COMPANY DID NOT SAY WHETHER A SUCCESSOR TO MR. KREITMAN SIXTY TWO YEARS OLD WILL BE NAMED OR WHETHER MR. WEISSMAN FIFTY TWO WILL CONTINUE TO FILL THOSE DUTIES MR. KREITMAN'S RETIREMENT COMES IN THE WAKE OF THE COMPANY'S LOSS OF U. S. POSTAL SERVICE PRINTING WORK VALUED AT AS MUCH AS THREE HUNDRED THIRTY MILLION DOLLARS OVER FIVE YEARS YOUR JANUARY SIXTH POLITICS AND POLICY ARTICLE ON EMPOWER AMERICA DOESN'T STICK TO ITS SUBJECT YOU DEVOTE EIGHT OUT OF EIGHTEEN PARAGRAPHS TO SENATOR BOB DOLE WHO RECENTLY FOUNDED A COMPETING ORGANIZATION TO SENATOR DOLE'S NEW ALLY JUDE WANNISKI AND TO RESPONSE DYNAMICS INCORPORATED RDI A DIRECT MAIL FIRM THESE CHARACTERS ARE INTRODUCED ONLY TO IMPUGN MESSRS DOLE AND WANNISKI NATURALLY HAVE LITTLE GOOD TO SAY ABOUT EMPOWER AMERICA AND YOU ALL BUT CALL THE GROUP FOOLISH FOR HIRING RDI ON THE DUBIOUS GROUND THAT THE FIRM PREVIOUSLY DID WORK FOR THE FOLKS WHO MADE THE WILLIE HORTON ADS IN ADDITION YOU DISCUSS THE SALARY OF HERITAGE FOUNDATION PRESIDENT DOCTOR EDWIN FEULNER WHO HAS NO RELATION WHATSOEVER TO EMPOWER AMERICA YOU WANT THINGS BOTH WAYS YOU TRY TO PORTRAY THE EMPOWER AMERICA FELLOWS AS LACKEYS OF WALL STREET MONEY AND SIMULTANEOUSLY AS DIRECT MAIL HUSTLERS WHO NEED TO CON THOUSANDS OF CITIZENS INTO QUOTE EMPOWERING QUOTE NONPROFIT FAT CATS DENIED THE FREE PUBLICITY THE LIBERAL MEDIA REGULARLY BESTOW ON THEIR PET CAUSES THE CONSERVATIVE THINK TANKS HAVE APPEALED TO THEIR CONSTITUENCIES WITH DIRECT MAIL AND GRASS ROOTS ORGANIZATIONS INCLUDING HORRORS CHURCHES FINALLY BECAUSE MOST CONSERVATIVES HOLD JOBS WITH NO BUILT IN PUBLIC FORUM THEY HAVE GENEROUSLY ENSURED THAT THE MEN AND WOMEN FIGHTING THE IDEOLOGICAL BATTLE HAVE SALARIES COMPARABLE TO THEIR LIBERAL COUNTERPARTS IN THE NEWS MEDIA THERE IS NOTHING SINISTER IN THIS EXCEPT THAT LIBERALS ARE OFFENDED BY HOW WELL IT WORKS THE WHITE HOUSE IS READY TO BREAK THE GRIDLOCK OVER THE CHAIRMANSHIP OF THE NATIONAL LABOR RELATIONS BOARD ADMINISTRATION AND CONGRESSIONAL SOURCES SAID THE WHITE HOUSE WILL NOMINATE WASHINGTON MANAGEMENT LAWYER CHARLES COHEN TO THE BOARD A MOVE THAT WOULD PROD REPUBLICANS INTO RELEASING THEIR HOLD ON THE CONFIRMATION OF STANFORD UNIVERSITY LAW PROFESSOR WILLIAM GOULD THE FOURTH AS CHAIRMAN THE ANNOUNCEMENT OF MR. COHEN'S NOMINATION IS EXPECTED AS EARLY AS TODAY IT WOULD COME JUST TWO DAYS AFTER THE WHITE HOUSE NAMED JOHN TRUESDALE N. L. R. B. EXECUTIVE SECRETARY TO THE BOARD AS AN INTERIM APPOINTMENT A STEP THAT RESTORED A QUORUM TO THE PANEL THE FIVE MEMBER BOARD HAD BEEN UNABLE TO HEAR CASES FOR MORE THAN A MONTH SINCE THE PANEL DWINDLED TO TWO MEMBERS IN JUNE PRESIDENT CLINTON NOMINATED PROFESSOR GOULD TO JOIN THE BOARD AND THEN SAID HE PLANNED TO TAP HIM AS CHAIRMAN THE NOMINATION WAS QUICKLY CONFIRMED BY THE SENATE LABOR COMMITTEE BUT IT WAS THEN BLOCKED FROM A FLOOR VOTE BY REPUBLICANS WORRIED ABOUT PROFESSOR GOULD'S PRO UNION WRITINGS REPUBLICANS ALSO DEMANDED THAT THE OPEN POST BE FILLED WITH A PRO MANAGEMENT LAWYER TRADITIONALLY NO MORE THAN THREE MEMBERS OF THE N. L. R. B. HAVE BEEN FROM A SINGLE POLITICAL PARTY SINCE THE WHITE HOUSE HAS FILLED ITS SLATE OF DEMOCRATS THE REMAINING OPEN SEAT MUST GO TO A REPUBLICAN OR INDEPENDENT REPUBLICANS LED BY SENATOR NANCY KASSEBAUM OF KANSAS THE COMMITTEE'S RANKING MINORITY MEMBER SENT A STRING OF NAMES TO THE WHITE HOUSE SEEKING SOMEONE TO REPRESENT MANAGEMENT VIEWS PROFESSOR GOULD FOR HIS PART HAS VOWED TO EXAMINE ALL CASES STRAIGHT DOWN THE MIDDLE THE REPUBLICANS ALSO WOULDN'T ALLOW ACTION ON THE NOMINATIONS OF PHILADELPHIA LAWYER MARGARET BROWNING TO JOIN THE BOARD OR ON HOUSE LABOR COUNSEL FRED FEINSTEIN TO BE GENERAL COUNSEL THE NOMINATION OF MR. COHEN A PARTNER AT THE WASHINGTON FIRM OF OGLETREE DEAKINS NASH SMOAK AND STEWART WOULD BREAK THE LOGJAM THE PAPERWORK ON MR. COHEN IS EXPECTED TO TAKE SEVERAL WEEKS TO COMPLETE AND THEN ALL THE NOMINEES WOULD BE CONFIRMED IN A BLOCK MR. COHEN FORTY EIGHT YEARS OLD WORKED AT THE BOARD FROM NINETEEN SEVENTY ONE TO NINETEEN SEVENTY NINE EVENTUALLY REACHING THE POST OF DEPUTY REGIONAL ATTORNEY IN PHILADELPHIA HE THEN JOINED THE LAW FIRM VEDDER PRICE KAUFMAN KAMMHOLZ AND DAY BEFORE GOING TO OGLETREE IN NINETEEN NINETY HE COULDN'T BE REACHED TO COMMENT ON THE EXPECTED NOMINATION YOUR JANUARY EIGHTEENTH LEAD EDITORIAL QUOTE FOUNTAIN OF TRUST QUOTE STATES THAT WORTHEN IS CONTROLLED BY THE STEPHENS FAMILY THIS STATEMENT IS FALSE SEVERAL STEPHENS FAMILY MEMBERS AND TRUSTS IF AGGREGATED CURRENTLY OWN APPROXIMATELY TWENTY SIX PERCENT OF THE OUTSTANDING SHARES HOWEVER THEY DO NOT CONTROL THE MANAGEMENT POLICIES LENDING OR OPERATIONS OF WORTHEN NO STEPHENS FAMILY MEMBERS OR NOMINEES SIT ON WORTHEN'S BOARD OF DIRECTORS OR HOLD ANY OFFICER POSITION WITH WORTHEN ALL DIRECTORS OF WORTHEN ARE ELECTED BY THE STOCKHOLDERS AT LARGE AND REPRESENT ALL STOCKHOLDERS FOURTEEN OF WORTHEN'S FIFTEEN DIRECTORS ARE OUTSIDE INDEPENDENT DIRECTORS ONLY ONE WORTHEN DIRECTOR ALSO SERVES AS AN OFFICER OF WORTHEN THIS GROUP OF DISTINGUISHED AND ACCOMPLISHED INDIVIDUALS REPUDIATES THE SUGGESTION THAT ANY ATTEMPT HAS BEEN MADE BY ANY STEPHENS FAMILY MEMBER TO INAPPROPRIATELY INFLUENCE THE ACTIVITIES OF WORTHEN IN THE SAME SENTENCE IN WHICH YOUR EDITORIAL INACCURATELY ATTRIBUTES CONTROL OF WORTHEN TO THE STEPHENS FAMILY YOU ALSO STATE THAT WORTHEN MADE LOANS TO PRESIDENT CLINTON'S CAMPAIGN COMMITTEE AND HELD A LIEN ON JAMES MCDOUGAL'S MADISON GUARANTY STOCK IN A THINLY VEILED ATTEMPT TO IMPLY THAT THE TWO LOAN TRANSACTIONS WERE RELATED TO EACH OTHER IN FACT THESE LOAN TRANSACTIONS ARE NOT RELATED TO EACH OTHER AND ARE SEPARATED IN TIME BY A PERIOD OF TEN YEARS FURTHERMORE THE LOAN TO MR. MCDOUGAL AND THE ATTENDANT TAKING OF THE LIEN WAS INITIATED IN NINETEEN EIGHTY TWO PRIOR TO THE TIME THAT ANY STEPHENS FAMILY MEMBER OWNED ANY SHARES IN WORTHEN ADDITIONALLY NO CURRENT MEMBER OF WORTHEN'S EXECUTIVE MANAGEMENT TEAM WAS IN EXECUTIVE MANAGEMENT OF WORTHEN WHEN THAT LOAN WAS APPROVED OR MADE FOR THE SAKE OF PERSPECTIVE THE OUTSTANDING BALANCE OF MR. MCDOUGAL'S LOAN NEVER EXCEEDED TWO HUNDRED FIFTY THOUSAND DOLLARS THE VALUE OF WORTHEN'S LIEN ON THE MADISON GUARANTY STOCK WAS IRRETRIEVABLY DESTROYED IN NINETEEN EIGHTY SEVEN WHEN MADISON GUARANTY WAS TAKEN OVER BY THE REGULATORS THE LOAN EXTENDED TO PRESIDENT CLINTON'S CAMPAIGN COMMITTEE WAS ORIGINATED LONG AFTER MADISON GUARANTY HAD CEASED TO EXIST THE CAMPAIGN LOAN WAS APPROVED AND MADE BY CURRENT MANAGEMENT ON A SOUND BANKING BASIS SECURED BY CAMPAIGN MATCHING FUNDS PAYABLE BY THE U. S. TREASURY AND WAS PAID IN FULL AS AGREED IN JULY OF NINETEEN NINETY TWO THE INTEREST RATE CHARGED TO THE CAMPAIGN COMMITTEE WAS THE MAXIMUM RATE ALLOWED BY ARKANSAS LAW TEN YEARS ELAPSED BETWEEN THE MAKING OF THESE TWO LOANS CONTRARY TO THE INTENDED IMPLICATIONS OF YOUR EDITORIAL ABSOLUTELY NO RELATIONSHIP EXISTS BETWEEN THE LOAN TO PRESIDENT CLINTON'S CAMPAIGN COMMITTEE AND THE LOAN TO MR. MCDOUGAL OR FOR THAT MATTER BETWEEN EITHER OF THOSE LOANS AND THE STEPHENS FAMILY'S OWNERSHIP INTEREST IN WORTHEN WE DISAGREE WITH THE THOUGHT THAT SUCH INACCURACIES INNUENDOES AND PHANTOM LINKAGES CAN CONTINUE TO BE MADE WITHOUT CONSEQUENCE FUTURE PUBLICATIONS THAT ASSERT OR IMPLY THE EXISTENCE BETWEEN WORTHEN AND STEPHENS FAMILY MEMBERS OF RELATIONSHIPS THAT DO NOT IN FACT EXIST OR THAT SUGGEST A LINKAGE BETWEEN THE NINETEEN NINETY TWO LOAN TO THE CLINTON CAMPAIGN COMMITTEE AND A NINETEEN EIGHTY TWO LOAN TO MR. MCDOUGAL WILL BE VIEWED AS ATTEMPTS TO INTENTIONALLY MISLEAD THE PUBLIC AND DAMAGE THE REPUTATION OF WORTHEN SOMETIMES IT SEEMS IT TAKES AN EARTHQUAKE TO SHAKE THINGS UP THE BREAKDOWN OF THE FREEWAY SYSTEM HERE PRESENTS COMPANIES IN BOTH THIS REGION AND OTHERS A SIGNAL OPPORTUNITY TO EXPERIMENT WITH MORE DECENTRALIZED WAYS TO CONDUCT BUSINESS SUCH AS QUOTE TELECOMMUTING QUOTE IT IS NOT INAPPROPRIATE THAT THE LOS ANGELES AREA SERVE AS EPICENTER FOR THE LATEST SHIFT IN WORKPLACE REALITIES NEARLY A HALF CENTURY AGO SOUTHERN CALIFORNIA SPAWNED THE FREEWAY ERA THAT ENCOURAGED AN EVER WIDENING SEPARATION BETWEEN WORKPLACE AND LIVING SPACE EVEN BEFORE THE EARTHQUAKE THIS DEPENDENCE ON FREEWAYS WAS OVERSTRETCHING THE REGION'S ECONOMIC LIFELINES IN THE INLAND EMPIRE REGION ENCOMPASSING SAN BERNARDINO AND RIVERSIDE COUNTIES NEARLY THREE HUNDRED THOUSAND PEOPLE COMMUTE DAILY TO WORKPLACES IN ORANGE AND LOS ANGELES COUNTIES THAT COMMUTE NORMALLY TAKES UP TO AN HOUR EVEN WITHOUT THE FREEWAY DAMAGE FROM THE QUAKE IT WAS EXPECTED TO GROW BY AT LEAST HALF AN HOUR BY DECADE'S END GIVEN THE LOCATION OF THE BREAKS IN THE FREEWAY SYSTEM EVEN WORSE COMMUTES AWAIT TRAVELERS FROM OTHER OUTLYING BEDROOM SUBURBS NOTABLY IN THE SANTA CLARITA AND SIMI VALLEYS TO RELIEVE THIS PRESSURE SOME PUBLIC POLICY EXPERTS HAVE LONG SUGGESTED MASSIVE INVESTMENT IN NEW TRAIN AND OTHER PUBLIC TRANSIT SYSTEMS YET THEY HAVE AT LEAST UNTIL NOW LARGELY IGNORED MORE FLEXIBLE LESS EXPENSIVE AND INDIVIDUALIZED ALTERNATIVES TO A LARGE EXTENT THE FIXATION ON RAIL TRANSPORTATION REFLECTS AN ARCHAIC VISION OF AN ECONOMY DOMINATED BY HIGHLY CONCENTRATED HIGH RISE OFFICE MARKETS WITH OVER NINETY PERCENT OF JOBS LOCATED OUTSIDE THE CENTRAL BUSINESS DISTRICTS IN MOST AMERICAN CITIES RIDING THE TRAIN DOWNTOWN DOES NOT PRESENT A WORKABLE ALTERNATIVE INSTEAD SOLUTIONS SUCH AS PRIVATE JITNEY VANS OR TELECOMMUTING OFFER A FAR BETTER MEANS OF GETTING WORK DONE WHILE REDUCING STRESS ON AN ALREADY OVERSTRETCHED TRANSPORT SYSTEM TELECOMMUNICATIONS AND COMPUTER TECHNOLOGIES NOW MAKE IT POSSIBLE FOR MANY WORKERS TO DO THEIR JOBS SUCCESSFULLY WITHOUT LEAVING THEIR HOMES OR BY SIMPLY VISITING LOCAL TELECOMMUTING CENTERS THIS HAS FUELED AN EXPLOSION OF TELECOMMUTERS TO MORE THAN EIGHT POINT THREE MILLION AMERICANS TODAY FROM ROUGHLY FOUR MILLION IN NINETEEN NINETY ACCORDING TO TELECOMMUNICATIONS CONSULTANCY LINK RESOURCES THE L. A. EARTHQUAKE AS WELL AS THE RECENT COLD WEATHER IN THE NORTHEAST AND MIDWEST THAT CLOSED SCORES OF MAJOR BUSINESSES INCLUDING THE FEDERAL GOVERNMENT IN WASHINGTON ARE LIKELY TO MAKE THIS ALTERNATIVE SEEM ALL THE MORE ATTRACTIVE JACK NILLES THE LOS ANGELES CONSULTANT WIDELY CREDITED WITH INVENTING THE TERM TELECOMMUTING SAYS AT LEAST HALF THE WORK FORCE IN SOUTHERN CALIFORNIA COULD TELECOMMUTE AT LEAST TWICE A MONTH HE ALSO CLAIMS THAT COMPANIES CAN SAVE MORE THAN EIGHT THOUSAND DOLLARS A YEAR FOR EACH MIDLEVEL EMPLOYEE WHO BECOMES A REGULAR TELECOMMUTER ALREADY SOME FIRMS SUCH AS AD AGENCY CHIAT SLASH DAY IN VENICE CALIFORNIA HAVE EXPERIMENTED WITH THIS NEW WORK STYLE THEY HAVE TRANSFORMED THEIR HEADQUARTERS FROM A COMPULSORY DAILY DESTINATION TO A LOCALE LARGELY FOR NECESSARY SOCIAL AND CONSULTATIVE FUNCTIONS NANCY EISER IS TRANSPORTATION PROGRAM MANAGER FOR THE LOS ANGELES COUNTY GOVERNMENT AND HAS CONSULTED WITH OVER TWO HUNDRED FIRMS IN THE REGION HER EXPERIENCE WITH THE COUNTY'S TWO THOUSAND SIX HUNDRED TELECOMMUTERS SHOULD COMMAND THE ATTENTION OF PRIVATE SECTOR EMPLOYERS WHOSE MIDDLE MANAGERS SHE SAYS HAVE TO GET PAST THE NOTION THAT YOU HAVE TO PUNCH IN AND BE THERE TO WORK THE COUNTY ASSESSOR'S OFFICE FOR EXAMPLE FOUND TELECOMMUTERS PROCESSED THEIR WORK SIXTY FOUR PERCENT FASTER THAN OFFICE BOUND EMPLOYEES AND THAT OVERALL PRODUCTIVITY ROSE THIRTY FOUR PERCENT ONCE TELECOMMUTING WAS INSTITUTED BUT PRODUCTIVITY IS NOT TELECOMMUTING'S ONLY BENEFIT BY CUTTING BACK ON AUTO EMISSIONS THE SOURCE OF SIXTY PERCENT OF THE BASIN'S SMOG TELECOMMUTING COULD ALSO REDUCE THE NEED FOR THE DRACONIAN STEPS PROPOSED BY THE ENVIRONMENTAL PROTECTION AGENCY AND THE LOCAL POLLUTION POLICE THE AIR QUALITY MANAGEMENT DISTRICT THE DEMANDS BY AQMD BUREAUCRATS FOR RIDE SHARING AND OTHER SMOG ABATING STEPS HAVE BEEN AMONG THE KEY ELEMENTS DRIVING BUSINESSES OUT OF THE REGION FINALLY THE SPREAD OF TELECOMMUTING ALSO HOLDS STRONG SOCIAL BENEFITS AS MANY AS FIFTY FIVE PERCENT OF WOMEN OWNED BUSINESSES OPERATE FROM HOME HOME BASED ENTERPRISES AND TELECOMMUTING ALLOW PEOPLE TO EARN INCOMES WHILE SPENDING MORE TIME WITH THEIR CHILDREN THEY ALSO ROOT WORKERS MORE DEEPLY IN THEIR COMMUNITIES SOMETHING THAT COULD HELP COUNTER THE ANOMIE ASSOCIATED WITH COMMUTER SUBURBS YET DESPITE THESE BENEFITS SUCH INNOVATIONS WILL LIKELY AROUSE OPPOSITION FROM SOCIAL ENGINEERS BOTH HERE IN CALIFORNIA AND ELSEWHERE WHO REMAIN ENAMORED OF THE OLD CENTRALIST ORDER THEY ALSO RUN AGAINST THE INTERESTS OF LOCAL POLITICIANS WHO SEE IN A MASSIVE INVESTMENT IN PUBLIC TRANSIT A MEANS TO PROVIDE JOBS FOR DEFENSE WORKERS AND AEROSPACE EMPLOYERS ANOTHER ARGUMENT AGAINST THE RESTRUCTURING OF WORK STEMS FROM FEARS THAT SUCH CHANGES COULD DEVASTATE THE REMNANTS OF INNER CITY ECONOMIES BUT INSTEAD OF BATTLING THE FUTURE CITIES LIKE LOS ANGELES AND NEW YORK SHOULD SEEK TO ADJUST TO THE NEW ECONOMIC REALITIES TO DO THIS THEY MUST RELEARN WHAT NATURAL HUMAN AND CULTURAL ADVANTAGES CITIES CAN EXPLOIT FOR THEIR ECONOMIC DEVELOPMENT NEW YORK FOR EXAMPLE STILL ATTRACTS MANY OF THE UNIQUELY SKILLED PEOPLE CRITICAL TO SUCH INDUSTRIES AS THE ARTS COMMUNICATIONS PUBLISHING AND FINANCIAL SERVICES THIS KIND OF CREATIVE HOTHOUSE ENVIRONMENT CANNOT BE DUPLICATED IN THE DULLER CLIMES OF A PLANO TEXAS OR PHOENIX MUCH THE SAME IS TRUE FOR SOUTHERN CALIFORNIA IN THE LOS ANGELES AREA FOR EXAMPLE THE FASTEST GROWING INDUSTRIES SUCH AS MEDICAL INSTRUMENTS SOFTWARE GARMENTS SLASH TEXTILES AND FOREIGN TRADE RELY HEAVILY ON UNIQUE LOCAL FACTORS SUCH AS THE CONCENTRATION OF SPECIALIZED SUPPLIERS A LARGE DESIGN COMMUNITY AND ABUNDANT AND OFTEN QUITE SKILLED IMMIGRANT LABOR RATHER THAN BEING ENGINEERED BY PLANNERS TO BE CLOSER TO THE URBAN CORE SUCH INDUSTRIES REMAIN IN CITIES BECAUSE IT SERVES THEIR PURPOSES LOS ANGELES'S VAST FILM AND TELEVISION INDUSTRY FOR EXAMPLE RELIES HEAVILY ON HIGHLY SKILLED SELF EMPLOYED LONE EAGLES AS WELL AS ON AN UNPARALLELED AGGLOMERATION OF SMALL CRAFT PROVIDERS MANY OF WHOM LIVE RELATIVELY CLOSE TO THE PRODUCTION FACILITIES AND EVEN FOR THOSE WHO DO COME FROM THE OUTLYING REGIONS THE OFTEN ODD HOURS OF ENTERTAINMENT PRODUCTION LESSEN DEPENDENCE ON RUSH HOUR COMMUTES SUCH CLUSTERING IS ALSO INCREASINGLY CHARACTERISTIC OF A HOST OF TECHNOLOGY INDUSTRIES SUCH AS MEDICAL EQUIPMENT WHICH PROBABLY NOW EMPLOYS MORE ANGELENOS THAN AEROSPACE KINGSTON TECHNOLOGIES ONE OF THE FASTEST GROWING COMPUTER COMPANIES IN THE COUNTRY GETS THE BULK OF ITS SUPPLIES FROM LOCAL LARGELY IMMIGRANT BASED FIRMS CLUSTERED WITHIN A FEW MILE RADIUS OF ITS NORTHWESTERN ORANGE COUNTY HEADQUARTERS IN THIS MANNER THE RESTRUCTURING OF WORK PROVIDES A UNIQUE OPPORTUNITY FOR CITIES TO REINVENT THEIR ROLE ODDLY IN SOME WAYS THIS RECALLS NOTHING SO MUCH AS THE RENAISSANCE CITIES CENTERS FOR SPECIALIZED OFTEN HOME BASED CRAFTS BUSINESSES AND IDEAL LOCALES FOR THE COSMOPOLITAN EXCHANGE THAT CANNOT BE DUPLICATED IN RURAL OR SMALL TOWN SETTINGS THIS MAY NOT BE THE HIGHLY CENTRALIZED WORLD IMAGINED BY THE SOCIAL ENGINEERS AND URBAN PLANNERS BUT IT MIGHT POINT TOWARD A WORKABLE FUTURE FOR THE NATION'S HARD PRESSED CITIES MR. KOTKIN IS A FELLOW AT BOTH THE CENTER FOR THE NEW WEST AND THE PEPPERDINE UNIVERSITY BUSINESS SCHOOL HE HAS BEEN A TELECOMMUTER FOR NEARLY TWO DECADES JACKSON ENTERTAINMENT COMPLEX A MUCH BALLYHOOED JOINT VENTURE BETWEEN SINGER MICHAEL JACKSON AND SONY HAS FALLEN FAR SHORT OF ITS HYPE IN THE SPRING OF NINETEEN NINETY ONE SONY CORPORATION CONFIDENTLY PREDICTED THAT ITS NEW VENTURE WITH THE POP STAR WHOSE ALBUM QUOTE THRILLER QUOTE IS THE BEST SELLING RECORD OF ALL TIME WOULD PRODUCE MOVIES AS WELL AS RECORDS AND WOULD GENERATE RETAIL SALES OF QUOTE ENTERTAINMENT SOFTWARE QUOTE IN EXCESS OF ONE BILLION DOLLARS FOUR YEARS LATER WITH CHARGES OF CHILD MOLESTATION SWIRLING AROUND MR. JACKSON SONY'S AMBITIOUS PLANS TO MAKE THE SINGER THE CENTERPIECE OF A PROFITABLE LONG TERM FRANCHISE HAVE FAILED MR. JACKSON HAS SETTLED A CIVIL SUIT AGAINST HIM FOR A SUM SAID TO BE ABOUT TWENTY MILLION DOLLARS A CRIMINAL INVESTIGATION IS CONTINUING THOUGH SALES OF HIS RECORDS CONTINUE STRONG IT IS UNCLEAR WHEN AND IF HE WILL PRODUCE A NEW ALBUM BUT EVEN BEFORE THE CHARGES SURFACED MR. JACKSON HADN'T DEVELOPED OTHER RECORDING STARS UNDER HIS OWN LABEL AS PROMISED MR. JACKSON'S AMBITIOUS PLANS TO STAR IN A SERIES OF FANTASY MOVIES AIMED AT KIDS NEVER CAME TO FRUITION AND LAST YEAR A MOVIE AND TELEVISION DEVELOPMENT DEAL WITH SONY'S COLUMBIA PICTURES UNIT WAS QUIETLY ENDED AFTER PRODUCING NOTHING HIGH TECH VISUAL PROJECTS WITH SONY'S CONSUMER ELECTRONICS UNIT ALSO NEVER MATERIALIZED SONY WON'T COMMENT ON THE FINANCIAL IMPACT OF ITS BIG STAR'S TROUBLES THOUGH EXECUTIVES SAY SONY FACES NO SERIOUS RISK MOSTLY LOST OPPORTUNITY AND A TARNISHED ASSET SANDY GALLIN MR. JACKSON'S BUSINESS MANAGER COULDN'T BE REACHED FOR COMMENT TO SOME OBSERVERS MICHAEL JACKSON IS AN EXAMPLE OF HOW MUCH HYPE LIES BEHIND THESE GLOSSY DEALS WITH STARS MOST DEALS SUCH AS THOSE STRUCK WITH MR. JACKSON ARE REGARDED WITH SKEPTICISM EVEN WITHIN THE ENTERTAINMENT COMPANIES IN ORDER TO STROKE THE EGOS OF RECORDING STARS LIKE MR. JACKSON PRINCE AND MADONNA AND GET THEM TO SIGN NEW RECORD CONTRACTS SONY AND TIME WARNER INCORPORATED HAVE SET UP ENTERTAINMENT COMPANIES FOR THE ARTISTS AND PROMISED FUNDS FOR MOVIE DEVELOPMENT TIME WARNER EVEN MADE PRINCE A VICE PRESIDENT OF ITS WARNER BROTHERS RECORD UNIT BUT MOST OF THE TIME THE RECORDING ARTISTS JUST KEEP ON MAKING ALBUMS AND MOVIE PROJECTS IF THERE ARE ANY DON'T MAKE MONEY AND THE PACTS TYPICALLY DON'T COST THE COMPANIES MUCH IF THE ARTISTS DON'T DELIVER THE ACTUAL COST TO SONY UNDER THE JACKSON PACT IS SAID BY PEOPLE CLOSE TO THE COMPANY TO BE FIFTY MILLION DOLLARS TO SIXTY MILLION DOLLARS AND MOST OF THAT WILL BE PAID ONLY AS EACH ALBUM IS DELIVERED SONY REPORTEDLY PAID MR. JACKSON EIGHTEEN MILLION DOLLARS AS A SIGNING BONUS FOR DANGEROUS THE FIRST OF SIX ALBUMS TO BE FOLLOWED BY FIVE MILLION DOLLARS TO EIGHT MILLION DOLLARS REPORTS VARIED IN ADVANCES FOR EACH OF THE NEXT FIVE ALBUMS MR. JACKSON WAS SUPPOSED TO GET FIVE MILLION DOLLARS FOR EVERY MOVIE IN WHICH HE ACTED BUT SINCE HE HASN'T ACTED IN ANY SONY HASN'T HAD TO PAY IN MY MIND THERE IS VERY LITTLE IMPACT ON SONY AT THIS TIME JUST SOME LOST OPPORTUNITY DUE TO HIS INACTIVITY SAYS JOE SMITH A LONGTIME INDUSTRY EXECUTIVE NOW WORKING AS A MUSIC CONSULTANT TO BLOCKBUSTER ENTERTAINMENT CORPORATION GOD KNOWS WHEN SONY WILL GET A RECORD OUT OF THIS GUY AGAIN HE'S VERY FRAGILE EMOTIONALLY AND EVEN UNDER THE BEST CIRCUMSTANCES HE ONLY DELIVERS AN ALBUM EVERY COUPLE YEARS ONE PART OF SONY'S LOST REVENUE AT LEAST SO FAR IS A GREATEST HITS ALBUM THAT WAS WIDELY EXPECTED TO BE ISSUED IN NINETEEN NINETY THREE EARLY LAST FALL EXECUTIVES AT MR. JACKSON'S LABEL EPIC WRESTLED WITH WHETHER TO RELEASE A MICHAEL JACKSON GREATEST HITS ALBUM IN TIME FOR CHRISTMAS LAST FALL AN ATTORNEY FOR MR. JACKSON SAID THAT EPIC EXECUTIVES HAD ESTIMATED WORLD WIDE SALES FOR VOL. ONE OF A GREATEST HITS PACKAGE AT TWELVE MILLION UNITS GENERATING REVENUE OF MORE THAN SEVENTY FIVE MILLION DOLLARS THE COMPANY IS SAID TO HAVE A FIFTY TO FIFTY PROFIT SPLIT WITH MR. JACKSON HE ALSO SAID VOL. ONE WAS TO CONTAIN ELEVEN HIT SONGS FROM OLD MICHAEL JACKSON ALBUMS PLUS THREE NEW SONGS WHICH WOULD HELP GET RADIO EXPOSURE FOR THE ALBUM IN ANY CASE EPIC FINALLY ANNOUNCED AS THE SEX ALLEGATIONS WERE BEING MADE THAT DUE TO MICHAEL JACKSON'S HECTIC TOURING SCHEDULE HE WAS NOT ABLE TO COMPLETE RECORDING FOR THE GREATEST HITS RECORD SO IT HAS BEEN POSTPONED TO NEXT YEAR SONY CAN TAKE CONSOLATION FROM THE FACT THAT ITS MUSIC COMPANY IS IN BETTER SHAPE THAN IT WAS AT THE TIME IT SIGNED MR. JACKSON'S CONTRACT SONY'S LABELS ENDED NINETEEN NINETY THREE WITH THEIR BIGGEST MARKET SHARE EVER WITH A STRONG ARTIST ROSTER THAT INCLUDES SUCH ACTS AS GRUNGE ROCKERS PEARL JAM AND VETERAN SUPERSTAR BILLY JOEL MICHAEL SHALETT CHIEF OPERATING OFFICER OF SOUNDSCAN WHICH TALLIES ALBUM SALES AT STORES NATIONWIDE NOTES THAT MR. JACKSON'S QUOTE DANGEROUS QUOTE HAS BEEN IN THE TOP TWO HUNDRED FOR ONE HUNDRED THIRTEEN CONSECUTIVE WEEKS SINCE ITS NINETEEN NINETY ONE DEBUT SELLING FIVE POINT FOUR MILLION COPIES IN THE U. S. ALONE IN ONE WEEK IN LATE DECEMBER AT THE HEIGHT OF THE ALLEGATIONS DANGEROUS SOLD EIGHTEEN THOUSAND COPIES ACCORDING TO SOUNDSCAN A CONSORTIUM OF OIL COMPANIES IS CLOSE TO SIGNING AN AGREEMENT WITH AZERBAIJAN FOR THE SEVEN BILLION DOLLAR DEVELOPMENT AND EXPLOITATION OF TWO OFFSHORE OIL FIELDS IN THE CASPIAN SEA ACCORDING TO INDUSTRY OFFICIALS FOLLOWING MONTHS OF GIVE AND TAKE ON THE TERMS LAWYERS ARE DRAFTING THE FINAL LANGUAGE OF THE ACCORD EXPECTED TO BE READY FOR SIGNATURE WITHIN WEEKS VAHIT KUZUOGLU DEPUTY MANAGER OF TURKISH PETROLEUM COMPANY ONE OF THE MEMBERS OF THE CONSORTIUM EXPECTS A PUBLIC STATEMENT TO BE MADE WHEN AZERI PRESIDENT GEIDAR ALIYEV VISITS ANKARA NEXT MONTH QUOTE IT'S LONG PENDING QUOTE HE SAID OIL COMPANIES CAUTION HOWEVER THAT THE TEDIOUS NEGOTIATING PROCESS COULD AGAIN BE STALLED BY POLITICAL TURMOIL IN THE FORMER SOVIET REPUBLIC AND OVER THE ISSUE OF WHETHER RUSSIA WILL END UP WITH A STAKE IN THE PROJECT A SPOKESMAN FOR BRITISH PETROLEUM P. L. C. A LEADING CONSORTIUM MEMBER WOULD SAY ONLY THAT WE HOPE TO SEAL AN AGREEMENT SOMETIME THIS YEAR OTHER MEMBERS INCLUDE NORWAY'S STATOIL A SLASH S. AMOCO CORPORATION PENNZOIL COMPANY RAMCO OIL SERVICES INCORPORATED UNOCAL CORPORATION AND MCDERMOTT INTERNATIONAL INCORPORATED SCHLUMBERGER LIMITED CITING THE COST OF TRIMMING ITS SEISMIC OPERATIONS SAID FOURTH QUARTER NET INCOME FELL TWENTY PERCENT THE OILFIELD SERVICES AND MEASUREMENT SYSTEMS CONCERN SAID EARNINGS FOR THE PERIOD WERE ONE HUNDRED TWENTY FOUR MILLION DOLLARS OR FIFTY ONE CENTS A SHARE COMPARED WITH ONE HUNDRED FIFTY FOUR POINT ONE MILLION DOLLARS OR SIXTY FOUR CENTS A SHARE A YEAR EARLIER REVENUE ROSE SEVEN PERCENT TO ONE POINT SEVEN FIVE BILLION DOLLARS FROM ONE POINT SIX THREE BILLION DOLLARS SCHLUMBERGER STOCK ROSE YESTERDAY TO FIFTY EIGHT POINT THREE SEVEN FIVE DOLLARS A SHARE UP TWELVE POINT FIVE CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE NEW YORK BASED COMPANY SAID THE CURRENT WEAKNESS IN THE PRICE OF OIL QUOTE HAS CAST A MOOD OF UNCERTAINTY OVER THE UPSTREAM SPENDING OF OUR CUSTOMERS QUOTE FOR THE YEAR SCHLUMBERGER'S NET FELL FORTY NINE PERCENT TO THREE HUNDRED THIRTY FOUR POINT EIGHT MILLION DOLLARS INCLUDING A TWO HUNDRED FORTY EIGHT MILLION DOLLAR CHARGE RELATED TO RETIREMENT BENEFITS FROM A YEAR EARLIER SIX HUNDRED SIXTY ONE POINT SIX MILLION DOLLARS REVENUE INCREASED FIVE POINT NINE PERCENT TO SIX POINT SEVEN ONE BILLION DOLLARS FROM SIX POINT THREE THREE BILLION DOLLARS NEW YORK BANCORP INCORPORATED DOUGLASTON N. Y. DECLARED A TEN PERCENT STOCK DIVIDEND PAYABLE FEBRUARY FOURTEENTH TO STOCK OF RECORD FEBRUARY FOURTH THE BANK HOLDING COMPANY FOR HOME FEDERAL SAVINGS BANK ALSO SAID IT EXPECTS TO RAISE ITS NEXT QUARTERLY CASH DIVIDEND ON COMMON STOCK BY TEN PERCENT IN APRIL TO MAINTAIN IT AT TWENTY CENTS A SHARE AFTER THE STOCK DIVIDEND LAFARGE COPPEE S. A. A FRENCH BUILDING MATERIALS GROUP PLANS TO CONTINUE ITS GROWTH STRATEGY WITH FIVE BILLION TO SEVEN BILLION FRANCS EIGHT HUNDRED FORTY TWO MILLION DOLLARS TO ONE POINT ONE EIGHT BILLION DOLLARS IN NEW INVESTMENTS ENVISIONED FOR NINETEEN NINETY FOUR CHAIRMAN BERTRAND COLLOMB SAID MR. COLLOMB ALSO SAID THAT FOLLOWING LAST FALL'S RIGHTS ISSUE IN WHICH LAFARGE RAISED NEARLY THREE BILLION FRANCS IN FRESH CAPITAL AND AFTER A ONE HUNDRED TWENTY MILLION DOLLAR RIGHTS ISSUE BY ITS U. S. UNIT LAFARGE CORPORATION THE GROUP'S NET DEBT TO EQUITY RATIO AT THE END OF NINETEEN NINETY THREE WAS BELOW THIRTY PERCENT LAFARGE'S DEBT TO EQUITY RATIO WAS NEARLY FORTY FIVE PERCENT AT THE END OF THE FIRST HALF OF NINETEEN NINETY THREE K. P. M. G. PEAT MARWICK A MAJOR ACCOUNTING FIRM SAID THAT ITS AUSTRALIAN AFFILIATE WILL PAY NINETY SEVEN MILLION DOLLARS TO SETTLE A SUIT ALLEGING FAULTY AUDITS OF A STATE OWNED MERCHANT BANK THAT COLLAPSED FOUR YEARS AGO THE SETTLEMENT IS ONE OF THE BIGGEST EVER MADE BY AN ACCOUNTING FIRM IN AUSTRALIA ACCORDING TO ATTORNEYS FAMILIAR WITH AUDIT NEGLIGENCE CASES IN NINETEEN NINETY TWO THE AUSTRALIAN STATE OF VICTORIA SUED PEAT MARWICK HUNGERFORDS ALLEGING MALPRACTICE IN ITS AUDITS OF TRICONTINENTAL GROUP BANK A SUBSIDIARY OF THE STATE BANK OF VICTORIA THE BANK HAD LENT MONEY TO AUSTRALIAN BUSINESS PEOPLE WHO TRIED WITHOUT SUCCESS TO TAKE OVER CERTAIN U. S. ENTERTAINMENT COMPANIES THE BANK COLLAPSED IN NINETEEN NINETY WITH ONE POINT EIGHT FIVE BILLION DOLLARS IN DEBT THE SUIT ALLEGED THAT PEAT MARWICK HUNGERFORDS FAILED TO DETECT THE BANK'S PROBLEMS IN TIME TO AVERT THE BANK'S FAILURE PEAT SAID THAT DESPITE THE SETTLEMENT WHICH IS COVERED BY INSURANCE IT DOESN'T ADMIT ANY WRONGDOING SUPERMAC TECHNOLOGY INCORPORATED REPORTED WORSE THAN EXPECTED RESULTS POSTING A LOSS OF NINE POINT NINE MILLION DOLLARS ON SHARPLY HIGHER SALES OF FORTY EIGHT POINT FIVE MILLION DOLLARS FOR THE FOURTH QUARTER SUPERMAC ATTRIBUTED THE LOSS TO A LARGER THAN EXPECTED SIXTEEN POINT SIX MILLION DOLLAR RESTRUCTURING CHARGE RELATED TO THE CONSOLIDATION OF PRODUCT DEVELOPMENT AND EXCESS FACILITIES FOR THE YEAR AGO QUARTER THE COMPANY HAD NET OF ONE POINT EIGHT MILLION DOLLARS OR TWENTY THREE CENTS A SHARE ON SALES OF THIRTY NINE POINT FOUR MILLION DOLLARS SHARES IN THE SUNNYVALE CALIFORNIA MAKER OF DESKTOP COLOR GRAPHICS SYSTEMS ROSE ONE DOLLAR TO TEN DOLLARS AND FIFTY CENTS YESTERDAY IN NASDAQ STOCK MARKET TRADING AS INVESTORS BET THAT THE COMPANY HAD TAKEN A LARGE ENOUGH CHARGE TO POSITION ITSELF FOR PROFITABILITY BUT IN A CONFERENCE CALL WITH SECURITIES ANALYSTS MANAGEMENT SAID IT COULDN'T PREDICT WHETHER THE COMPANY WOULD REACH THE BLACK IN ITS CURRENT QUARTER RALLY'S HAMBURGERS INCORPORATED WHOSE PROFIT AND STOCK PRICE HAVE BEEN ON A DOWNWARD SLIDE SAID THE COMPANY AND SOME OFFICERS AND DIRECTORS WERE NAMED AS DEFENDANTS IN A LAWSUIT FILED BY A GROUP OF SHAREHOLDERS THE LOUISVILLE KENTUCKY HAMBURGER CHAIN SAID THAT QUOTE THE PLAINTIFFS PURPORT TO REPRESENT A CLASS OF RALLY'S SHAREHOLDERS WHO TRADED IN RALLY'S COMMON STOCK BETWEEN JULY NINETEEN NINETY TWO AND SEPTEMBER NINETEEN NINETY THREE QUOTE THE COMPANY SAID THE SUIT FILED IN U. S. DISTRICT COURT IN LOUISVILLE CLAIMS RALLY'S AND SOME OFFICERS AND DIRECTORS VIOLATED FEDERAL SECURITIES LAWS DURING THAT PERIOD AND SEEKS UNSPECIFIED DAMAGES AND ATTORNEY'S FEES RALLY'S SAID IT DENIES THE ALLEGATIONS AND WILL DEFEND THE ACTION SPARTA SURGICAL CORPORATION SAID ITS SPARTA MAXILLOFACIAL PRODUCTS INCORPORATED UNIT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF CERTAIN ASSETS OF THE STORZ ORAL MAXILLOFACIAL PLATING BUSINESS FROM A UNIT OF AMERICAN CYANAMID COMPANY FOR ONE POINT SIX MILLION DOLLARS SPARTA SURGICAL SAID ONE HUNDRED THOUSAND DOLLARS WAS PAID AT CLOSING AND THE REMAINDER IS PAYABLE UNDER AN EIGHT YEAR PROMISSORY NOTE IN CONJUNCTION WITH THE ACQUISITION SPARTA ENTERED INTO A TEN YEAR AGREEMENT WITH DAVIS AND GECK ANOTHER UNIT OF AMERICAN CYANAMID FOR RESEARCH AND DEVELOPMENT OF AN ABSORBABLE PLATING SYSTEM TECHNOLOGY AN ITALIAN PARLIAMENTARY COMMISSION IN A THREE HUNDRED FORTY PAGE REPORT SAID THAT ILLICIT LOANS TO IRAQ FROM ITALY'S BANCA NAZIONALE DEL LAVORO WERE PART OF A WIDER POLICY TO CHANNEL AID TO BAGHDAD DURING ITS WAR WITH IRAN AND THAT ROME AND WASHINGTON MUST HAVE KNOWN WHAT WAS GOING ON THE COMMISSION INVESTIGATED MORE THAN FOUR BILLION DOLLARS IN LOANS TO IRAQ MADE BY B. N. L.'S ATLANTA BRANCH QUOTE THAT THE POLITICAL DIRECTION OF THE WHOLE OPERATION WAS ALWAYS FIRMLY BASED IN WASHINGTON IS EVIDENT QUOTE THE REPORT SAID BUT THAT PERSONALITIES IN THE ITALIAN GOVERNMENT AND OF B. N. L. WERE AWARE OF WHAT WAS HAPPENING OR HAD RECEIVED AUTHORITATIVE ADVICE NOT TO LOOK TOO CLOSELY AT THE ATLANTA BRANCH OPERATIONS IS MORE THAN A MERE THEORY IT IS NOW EVIDENT THAT THE AFFAIR CONSTITUTED AN AMERICAN POLITICAL SCANDAL THE REPORT ADDED BEFORE THE NINETEEN NINETY ONE PERSIAN GULF WAR THE U. S. TILTED TOWARD IRAQ AS A COUNTERWEIGHT TO IRAN BUT THE POLICY BACKFIRED WITH BAGHDAD'S NINETEEN NINETY INVASION OF KUWAIT LAST MONTH A U. S. COURT SENTENCED THE MANAGER OF B. N. L.'S ALTANTA BRANCH CHRISTOPHER DROGOUL TO THIRTY SEVEN MONTHS IN PRISON FOR HIS ROLE IN GRANTING THE LOANS TO IRAQ DURING ITS NINETEEN EIGHTY TO EIGHTY EIGHT WAR WITH IRAN MR. DROGOUL MANAGED THE ATLANTA OFFICE FROM NINETEEN EIGHTY FOUR UNTIL IT WAS RAIDED BY THE FEDERAL BUREAU OF INVESTIGATION IN NINETEEN NINETY ONE MOST OF THE LOANS WEREN'T AUTHORIZED BY SENIOR B. N. L. MANAGERS AND MANY ILLEGALLY CARRIED U. S. EXPORT IMPORT BANK GUARANTEES U. S. LONG DISTANCE CORPORATION SAN ANTONIO SAID IT IS LIKELY TO REPORT A FIRST QUARTER LOSS PARTLY BECAUSE OF ACCOUNTING AND LEGAL COSTS RELATED TO AN INFORMAL SECURITIES AND EXCHANGE COMMISSION INQUIRY INTO THE COMPANY'S ACCOUNTING THE LONG DISTANCE AND OPERATOR SERVICES CONCERN MAINTAINS THAT ITS FINANCIAL STATEMENTS ARE FAIRLY STATED THE INQUIRY INVOLVES HOW U. S. LONG DISTANCE ACCOUNTS FOR CERTAIN RECEIVABLES THAT IT ACQUIRES AFTER THE INQUIRY WAS DISCLOSED LAST MONTH THE COMPANY WAS SUED BY TWO SHAREHOLDERS ALLEGING IMPROPER ACCOUNTING U. S. LONG DISTANCE CALLED THE SUITS UNFOUNDED THE COMPANY SAID ITS LOSS FOR ITS FIRST QUARTER ENDED DECEMBER THIRTY FIRST COULD REACH FIVE CENTS A SHARE ANALYSTS HAD EXPECTED A PROFIT OF FIVE CENTS TO ELEVEN CENTS A YEAR EARLIER PROFIT BEFORE A TAX BENEFIT TOTALED FIVE HUNDRED FORTY EIGHT THOUSAND DOLLARS OR FIVE CENTS A SHARE U. S. LONG DISTANCE LAST MONTH POSTPONED A PLANNED OFFERING OF ONE POINT SIX MILLION SHARES UNTIL THE S. E. C. INQUIRY IS COMPLETED THE COMPANY SAID IT IS COOPERATING IN THE INVESTIGATION FLEET FINANCIAL GROUP INCORPORATED PROVIDENCE R. I. SAID IT HAS BEEN AWARDED A TEN YEAR CONTRACT BY NEW YORK'S DEPARTMENT OF TAXATION AND FINANCE TO PROCESS THE STATE'S TEN MILLION PERSONAL INCOME TAX RETURNS A SPOKESMAN FOR THE FINANCIAL SERVICES COMPANY ESTIMATED THE VALUE OF THE CONTRACT AT ONE HUNDRED NINETY SEVEN MILLION DOLLARS THE CONTRACT INCLUDES REVIEWING RETURNS FOR COMPLETENESS AND DATA ENTRY FLEET ALSO WILL HANDLE THE DEPOSITING OF ESTIMATED TAX PAYMENTS AND EXPANDING THE ELECTRONIC INCOME TAX FILING SYSTEM THE SPOKESMAN SAID FLEET EXPECTS TO GRADUALLY PHASE IN THE NEW PROCESSING AND TO BE HANDLING ALL OF THE STATE'S TAX RETURNS BY THE END OF NINETEEN NINETY FIVE SEVERAL HUNDRED EMPLOYEES ARE EXPECTED TO BE HIRED ARMCO INCORPORATED PLANS TO VIRTUALLY ELIMINATE ITS INVOLVEMENT IN A CARBON STEEL JOINT VENTURE WITH KAWASAKI STEEL CORPORATION OF JAPAN BY ALLOWING THE VENTURE TO SELL SHARES TO THE PUBLIC THE MOVE WILL FREE ARMCO TO CONCENTRATE ITS RESOURCES ON ITS MORE PROFITABLE SPECIALITY STEEL BUSINESS STOCK IN THE JOINT VENTURE CALLED ARMCO STEEL COMPANY IS BEING OFFERED TO THE PUBLIC NOW WHILE THE MARKET FOR STEEL IS STILL RELATIVELY STRONG AND THE VENTURE IS ON AN UPSWING QUOTE STEEL STOCKS ARE MARKETABLE AT THE MOMENT QUOTE SAID CHARLES A. BRADFORD AN ANALYST WITH U. B. S. SECURITIES IT COULD BE A GOOD OPPORTUNITY FOR ARMCO AND IN THE STEEL INDUSTRY YOU MAY ONLY GET THE CHANCE ONCE EVERY FIVE YEARS TO SELL STOCK BECAUSE OF THE INDUSTRY'S CYCLES ARMCO LAST YEAR SAID IT PLANNED TO KEEP THE JOINT VENTURE IN SPITE OF THE FACT THAT ITS ENTIRE INVESTMENT HAD BEEN WIPED OUT BY ARMCO STEEL'S LOSSES BUT JUST THIS MONTH ARMCO PRESIDENT JAMES F. WILL WHOSE EXPERIENCE IS IN SPECIALTY STEEL SUCCEEDED ROBERT L. PURDUM AS CHIEF EXECUTIVE OFFICER SUGGESTING THAT THE COMPANY WOULD ACCELERATE ITS SHIFT AWAY FROM CARBON STEEL UNDER THE PLAN THE VENTURE INTENDS TO SELL ABOUT FIFTEEN POINT EIGHT MILLION COMMON SHARES AT TWENTY DOLLARS EACH THROUGH AN INITIAL PUBLIC OFFERING AND TWO HUNDRED SEVENTY FIVE MILLION DOLLARS IN DEBT THROUGH A SENIOR NOTE OFFERING PROCEEDS WOULD BE USED TO RESTRUCTURE AND RECAPITALIZE THE VENTURE PRIMARILY BY REDUCING ITS DEBT AND UNFUNDED PENSION LIABILITY UNDER TERMS OF THE PLAN ARMCO'S OBLIGATIONS TO MAKE CERTAIN CASH PAYMENTS TO THE VENTURE WOULD BE ELIMINATED AND ITS OWNERSHIP REDUCED TO LESS THAN ONE PERCENT KAWASAKI WOULD BE LEFT WITH A TWENTY ONE POINT SIX PERCENT STAKE MR. WILL SAID IN A STATEMENT THE COMPANY HAD BEEN EXPLORING OPTIONS WITH KAWASAKI TO IMPROVE THE VENTURE'S FINANCIAL POSITION WHILE AT THE SAME TIME LIMITING ARMCO'S EXPOSURE LIABILITIES CUT WE BELIEVE THIS PROPOSED PLAN BENEFITS ALL DESPITE THE REDUCTION IN OUR EQUITY INTEREST HE SAID IT RELIEVES US OF ANY FURTHER CASH INFUSION AND ELIMINATES CERTAIN OUTSTANDING LIABILITIES TO THE VENTURE AND ANY DIRECT LIABILITY ASSOCIATED WITH THE BUSINESS OF THE NEW COMPANY THE LIABILITIES RELATE TO SUCH THINGS AS THE PURCHASE OF RAW MATERIALS THE PROPOSED RECAPITALIZATION IS EXPECTED TO BENEFIT ARMCO IN THE LONGER TERM BY SUBSTANTIALLY IMPROVING THE FINANCIAL CONDITION OF THE VENTURE MR. WILL SAID HE NOTED THAT ARMCO WOULD MAINTAIN ACCESS TO THE VENTURE'S HOT STRIP MILL THROUGH AN EXISTING LONG TERM AGREEMENT TO ROLL STAINLESS STEEL FOR ARMCO INCORPORATED'S FINISHING FACILITIES THOMAS C. GRAHAM WILL REMAIN AS CHIEF EXECUTIVE OFFICER OF THE NEWLY PUBLIC COMPANY MR. GRAHAM WHO WAS CREDITED WITH TURNING AROUND U. S. X. CORPORATION'S U. S. STEEL GROUP WAS HIRED BY ARMCO STEEL IN NINETEEN NINETY TWO TO TURN THE JOINT VENTURE AROUND BY CUTTING COSTS AND IMPROVING PRODUCTIVITY ANALYSTS SAY HE HAS SUCCEEDED AND THAT NOW IS THE TIME TO SELL THE VENTURE THE MARKET FOR CARBON STEEL USED IN EVERYTHING FROM AUTOMOBILES TO WASHING MACHINES HAS BENEFITED IN THE PAST YEAR FROM THE ECONOMIC UPTURN ALCAN ALUMINIUM LIMITED SAID IT WILL CLOSE ITS RICHMOND BRITISH COLUMBIA FABRICATING PLANT IDLED SINCE LAST OCTOBER THE MONTREAL ALUMINUM MAKER SAID NINETY TWO UNIONIZED AND TWENTY NONUNION EMPLOYEES WILL BE AFFECTED THE UNIONIZED WORKERS HAD BEEN ON STRIKE SINCE LAST JULY STAFF EMPLOYEES CONTINUED OPERATING THE PLANT UNTIL OCTOBER THE PLANT HAS AN ANNUAL CAPACITY OF TWENTY EIGHT THOUSAND METRIC TONS OF ELECTRICAL ROD AND SIX THOUSAND METRIC TONS OF EXTRUSIONS A METRIC TON IS TWO THOUSAND TWO HUNDRED FOUR POINT SIX TWO POUNDS ALCAN SAID IT WILL OFFER A SEVERANCE PACKAGE AND RE EMPLOYMENT ASSISTANCE TO ALL AFFECTED EMPLOYEES IT DECLINED TO ESTIMATE THE COST OF THE CLOSURE ALCAN HAS FORTY FOUR THOUSAND EMPLOYEES WORLD WIDE AND FORTY SIX FABRICATING MILLS IN NORTH AMERICA ALEXANDER BROWN INCORPORATED REPORTED FOURTH QUARTER NET INCOME JUMPED EIGHTY FIVE PERCENT TO THIRTY EIGHT POINT NINE MILLION DOLLARS OR TWO DOLLARS AND FORTY TWO CENTS A SHARE FROM TWENTY ONE POINT ONE MILLION DOLLARS OR ONE DOLLAR AND THIRTY SEVEN CENTS A SHARE A YEAR EARLIER REVENUE AT THE BALTIMORE BASED BROKERAGE FIRM ROSE SEVENTY ONE PERCENT TO TWO HUNDRED EIGHTEEN POINT EIGHT MILLION DOLLARS FROM ONE HUNDRED TWENTY EIGHT POINT ONE MILLION DOLLARS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ALEXANDER BROWN SHARES CLIMBED ONE POINT SIX TWO FIVE DOLLARS OR SIX POINT SEVEN PERCENT TO TWENTY FIVE DOLLARS AND SEVENTY FIVE CENTS FOR THE YEAR THE COMPANY REPORTED NET OF EIGHTY NINE POINT TWO MILLION DOLLARS OR FIVE DOLLARS AND SIXTY ONE CENTS A SHARE A FIFTY TWO PERCENT INCREASE FROM NINETEEN NINETY TWO'S FIFTY EIGHT POINT SIX MILLION DOLLARS OR THREE DOLLARS AND SEVENTY TWO CENTS A SHARE REVENUE INCREASED THIRTY EIGHT PERCENT TO SIX HUNDRED TWENTY EIGHT POINT TWO MILLION DOLLARS FROM FOUR HUNDRED FIFTY FIVE POINT SEVEN MILLION DOLLARS ALEXANDER BROWN SAID INVESTMENT BANKING REVENUE INCREASED FIFTY PERCENT TO TWO HUNDRED FIFTY FOUR POINT ONE MILLION DOLLARS COMMISSION REVENUE GREW TWENTY ONE PERCENT TO ONE HUNDRED THIRTY ONE POINT SEVEN MILLION DOLLARS AND PRINCIPAL TRANSACTION REVENUE ROSE FORTY THREE PERCENT TO ONE HUNDRED TWENTY NINE POINT EIGHT MILLION DOLLARS FROM NINETEEN NINETY TWO SHARPER IMAGE CORPORATION A RETAILER SAID IT EXPECTS NET INCOME FOR ITS FISCAL FOURTH QUARTER ENDING JANUARY THIRTY FIRST TO GROW BY SIXTEEN PERCENT TO FIVE MILLION DOLLARS COMPARED WITH FOUR POINT THREE MILLION DOLLARS A YEAR EARLIER FOR THE FISCAL YEAR THE SAN FRANCISCO BASED COMPANY SAID IT EXPECTS EARNINGS OF ONE POINT EIGHT MILLION DOLLARS OR TWENTY CENTS A SHARE COMPARED WITH THREE HUNDRED FIFTY NINE THOUSAND DOLLARS OR FOUR CENTS A SHARE A YEAR EARLIER SHARPER IMAGE ATTRIBUTED THE HIGHER EARNINGS TO INCREASED SALES IN ITS FOURTH QUARTER AND REDUCED EXPENSES SHARES OF THE RETAILER ROSE SIXTY TWO POINT FIVE CENTS OR ELEVEN PERCENT TO SIX DOLLARS AND TWENTY FIVE CENTS IN NASDAQ STOCK MARKET TRADING DIME SAVINGS BANK OF NEW YORK SIGNED AN AGREEMENT TO SELL A POOL OF REAL ESTATE ASSETS FOR TWO HUNDRED SIXTY FOUR POINT SIX MILLION DOLLARS OR ABOUT EIGHTY PERCENT OF ITS ORIGINAL FACE VALUE DIME JOINS A GROWING NUMBER OF BANKS THAT TURNED TO SELLING PROBLEM LOANS IN BULK TO CLEAN UP BALANCE SHEETS AND IMPROVE FINANCIAL RATIOS THE THRIFT WHICH HAS ASSETS OF NINE POINT THREE BILLION DOLLARS ALSO REPORTED FOURTH QUARTER EARNINGS OF SEVENTEEN POINT SEVEN MILLION DOLLARS OR TWENTY NINE CENTS A SHARE COMPARED WITH A LOSS OF SEVENTEEN POINT NINE MILLION DOLLARS OR SEVENTY EIGHT CENTS A SHARE WHILE THE ASSET SALE CONTRIBUTED TO A PRETAX LOSS OF SIXTY SIX POINT FOUR BILLION DOLLARS FOR THE QUARTER IT WAS OFFSET BY RECOGNITION OF DEFERRED TAXES OF EIGHTY FOUR POINT ONE MILLION DOLLARS IN THE QUARTER AVERAGE COMMON SHARES OUTSTANDING MORE THAN DOUBLED SINCE NINETEEN NINETY TWO LONDON FOG CORPORATION SAID IT WILL RELOCATE ITS CORPORATE HEADQUARTERS TO FAIRFIELD COUNTY CONNECTICUT FROM ELDERSBURG THE COMPANY SAID IT EXPECTS TO SIGN A LETTER OF INTENT WITH THE DARIEN GREEN OFFICE COMPLEX IN DARIEN EARLY NEXT WEEK LONDON FOG SAID THE RELOCATION WILL TAKE PLACE WITHIN SIX MONTHS THE ELDERSBURG FACILITY WILL CONTINUE TO SERVE AS THE INTERNATIONAL OPERATIONAL HEADQUARTERS LONDON FOG SAID PAGING NETWORK INCORPORATED EXPECTS TO POST TODAY A FORTY FIVE PERCENT JUMP IN OPERATING CASH FLOW FOR THE FOURTH QUARTER TO ABOUT TWENTY NINE MILLION DOLLARS FROM TWENTY MILLION DOLLARS A YEAR EARLIER IN AN INTERVIEW THE PAGING COMPANY'S PRESIDENT TERRY L. SCOTT SAID PAGING NETWORK EXPECTS TO REPORT THAT REVENUE INCREASED THIRTY FOUR PERCENT IN THE PERIOD TO EIGHTY FIVE MILLION DOLLARS FROM SIXTY THREE POINT THREE MILLION DOLLARS A YEAR AGO THE COMPANY LIKE MOST OTHER PAGING CONCERNS VIEWS OPERATING CASH FLOW EARNINGS BEFORE INTEREST INCOME TAXES DEPRECIATION AND AMORTIZATION AS ITS KEY PERFORMANCE MEASURE BECAUSE OF HEAVY UP FRONT MARKETING EXPENSES MR. SCOTT SAID THE COMPANY WHICH IS BASED IN PLANO TEXAS EXPECTS TO REPORT A NET LOSS FOR THE QUARTER OF FOUR POINT SEVEN MILLION DOLLARS OR NINE CENTS A SHARE COMPARED WITH A LOSS OF FOUR POINT TWO MILLION DOLLARS OR TWELVE CENTS A SHARE A YEAR EARLIER HE SAID THE COMPANY CLOSED THE YEAR WITH THREE MILLION SEVENTY THOUSAND PAGERS IN SERVICE UP SHARPLY FROM TWO MILLION SEVENTY SEVEN THOUSAND NINE HUNDRED FIFTY FOUR AT THE END OF NINETEEN NINETY TWO A. M. P. INCORPORATED SAID THAT DESPITE NEGATIVE EXCHANGE RATE EFFECTS AND RECESSION IN SOME INTERNATIONAL MARKETS FOURTH QUARTER NET INCOME ROSE SLIGHTLY AND THE OUTLOOK FOR NINETEEN NINETY FOUR IS IMPROVING THE HARRISBURG PENNSYLVANIA MAKER OF ELECTRICAL AND ELECTRONIC CONNECTORS SAID PROFIT WAS SEVENTY ONE MILLION DOLLARS OR SIXTY EIGHT CENTS A SHARE COMPARED WITH SEVENTY POINT THREE MILLION DOLLARS OR SIXTY SEVEN CENTS A SHARE A YEAR EARLIER SALES GREW THREE POINT FOUR PERCENT TO EIGHT HUNDRED SEVENTY THREE MILLION DOLLARS FROM EIGHT HUNDRED FORTY FOUR POINT FIVE MILLION DOLLARS THE COMPANY SAID FIRST QUARTER SALES COULD SET A RECORD AND NET QUOTE SHOULD EXCEED QUOTE THE SEVENTY TWO POINT FIVE MILLION DOLLARS OR SIXTY NINE CENTS A SHARE OF A YEAR EARLIER FOR THE YEAR A. M. P. NET GREW TWO POINT THREE PERCENT TO TWO HUNDRED NINETY SEVEN MILLION DOLLARS FROM TWO HUNDRED NINETY POINT THREE MILLION DOLLARS SALES ROSE THREE POINT FOUR PERCENT TO THREE POINT FOUR FIVE BILLION DOLLARS FROM THREE POINT THREE FOUR BILLION DOLLARS A. M. P. RAISED ITS QUARTERLY DIVIDEND TO FORTY TWO CENTS A SHARE FROM FORTY CENTS A SHARE PAYABLE MARCH FIRST TO SHAREHOLDERS OF RECORD FEBRUARY SEVENTH I. T. T. CORPORATION'S I. T. T. AUTOMOTIVE SUBSIDIARY OPENED A NEW FLUID HANDLING SYSTEMS FACILITY IN GUAYMAS MEXICO I. T. T. AUTOMOTIVE SAID THE FACILITY WILL PRODUCE VACUUM AIR SUSPENSION AND SEAT BOLSTER INFLATION HARNESS COMPONENTS FOR CUSTOMERS IN MEXICO AND THE U. S. ROBERT ZIMCOSKY HAS BEEN NAMED PLANT MANAGER MR. ZIMCOSKY WAS FORMERLY WITH I. T. T. AUTOMOTIVE FLUID HANDLING SYSTEMS IN OSCODA MICHIGAN THE COMPANY SAID T. ROWE PRICE ASSOCIATES INCORPORATED SAID THE MUTUAL FUND BOOM PARTICULARLY IN THE INTERNATIONAL ARENA HELPED LIFT FOURTH QUARTER NET INCOME FIFTY THREE PERCENT TO FOURTEEN POINT SEVEN MILLION DOLLARS OR FORTY EIGHT CENTS A SHARE FROM NINE POINT SIX MILLION DOLLARS OR THIRTY TWO CENTS A SHARE A YEAR AGO REVENUE ROSE THIRTY EIGHT PERCENT TO EIGHTY NINE POINT NINE MILLION DOLLARS FROM SIXTY FIVE POINT FOUR MILLION DOLLARS THE BALTIMORE BASED COMPANY WHICH SERVES AS INVESTMENT ADVISER TO MUTUAL FUNDS AND OTHER CLIENTS SAID NET INCOME FOR THE FULL YEAR ROSE THIRTY SIX PERCENT TO FORTY EIGHT POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND FIFTY NINE CENTS A SHARE FROM THIRTY FIVE POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND NINETEEN CENTS A SHARE THE NINETEEN NINETY THREE RESULTS INCLUDED A CHARGE OF ONE CENT A SHARE FROM ACCOUNTING CHANGES REVENUE FOR THE YEAR GREW TWENTY SEVEN PERCENT TO THREE HUNDRED TEN MILLION DOLLARS FROM TWO HUNDRED FORTY FIVE POINT ONE MILLION DOLLARS THE RESULTS EXCEEDED ANALYSTS' ESTIMATES IN A STATEMENT THE COMPANY SAID IT IS QUOTE OPTIMISTIC QUOTE ABOUT ITS FUTURE PROSPECTS CITING ITS STRENGTH IN OVERSEAS MARKETS T. ROWE PRICE STOCK CLOSED AT TWENTY NINE DOLLARS AND SEVENTY FIVE CENTS UP ONE DOLLAR IN NASDAQ STOCK MARKET TRADING VICTOR POSNER IS FIGHTING A JUDGE'S ORDER BARRING HIM FROM RUNNING ANY PUBLICLY TRADED COMPANY BUT IN THE MEANTIME THE BAN APPEARS TO HAVE BOOSTED THE VALUE OF HIS STOCK PORTFOLIO BY AS MUCH AS TWO POINT SIX MILLION DOLLARS A FEDERAL JUDGE ORDERED THE UNPRECEDENTED BAN ON DECEMBER FIRST CITING MR. POSNER'S PREVIOUS RUN INS WITH SECURITIES REGULATORS AND CALLING THE FINANCIER QUOTE CONTEMPTUOUS OF THE INTERESTS OF PUBLIC SHAREHOLDERS QUOTE THE SECURITIES AND EXCHANGE COMMISSION SOUGHT THE HARSH PENALTY IN CONNECTION WITH MR. POSNER'S ALLEGED ROLE IN AN ILLEGAL STOCK BUYING SCHEME INVOLVING IVAN BOESKY AND MICHAEL MILKEN THE ORDER REQUIRED THAT MR. POSNER STEP DOWN AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SALEM CORPORATION THE ONLY PUBLICLY TRADED COMPANY AT WHICH HE WAS AN OFFICER AT THE TIME SALEM'S STOCK PRICE JUMPED FIFTEEN PERCENT ON THE DAY OF THE JUDGE'S ORDER WHICH WAS REPORTED EARLY IN THE AFTERNOON AND IT HAS CONTINUED TO CLIMB CURRENTLY THE STOCK PRICE ADJUSTED FOR A STOCK SPLIT EARLIER THIS MONTH IS TWENTY THREE PERCENT HIGHER THAN IT WAS TRADING JUST BEFORE THE COURT RULING MR. POSNER'S FORTY NINE POINT TWO PERCENT STAKE IN THE INDUSTRIAL EQUIPMENT COMPANY MAKES HIM THE BIGGEST BENEFICIARY OF THE STOCK PRICE INCREASE UNDER JUDGE MILTON POLLACK'S ORDER MR. POSNER RETAINS ALL ECONOMIC BENEFIT FROM HIS SALEM SHARES THOUGH THEY WILL BE HELD BY AN INDEPENDENT TRUST SO THAT MR. POSNER CANNOT HAVE ANY SAY IN HOW THE SHARES ARE VOTED A SPOKESWOMAN FOR SALEM AND FOR MR. POSNER SAID THE RISE IN THE STOCK PRICE HAS HAD NOTHING TO DO WITH THE COURT ORDER INSTEAD SHE SAID MR. POSNER AND COMPANY OFFICIALS BELIEVE THE INCREASE REFLECTS IMPROVEMENTS IN THE COMPANY'S BUSINESS AND A SIXTY CENT A SHARE ANNUAL DIVIDEND THAT WAS APPROVED BY THE BOARD ON DECEMBER THIRTEENTH THE STOCK PRICE HAD CLIMBED ABOUT TWENTY PERCENT IN THE FOUR MONTHS BEFORE THE COURT ORDER TOO IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SALEM SHARES CLOSED FIFTEEN DOLLARS AND TWENTY FIVE CENTS UNCHANGED THE SPOKESWOMAN SAID THAT MR. POSNER BELIEVES IN THE STOCK AND PLANS TO CONTINUE HOLDING HIS STAKE MR. POSNER'S APPEAL OF THE COURT ORDERED BAN AVOIDS THE ISSUE OF HOW THE MARKET HAS RESPONDED SINCE HIS REMOVAL FROM A LEADERSHIP ROLE AT THE COMPANY THE IMPROVED STOCK PRICE ISN'T THE ISSUE HERE SAID DENNIS BLOCK AN ATTORNEY FOR MR. POSNER AT THE NEW YORK LAW FIRM OF WEIL GOTSHAL AND MANGES IN A BRIEF FILED IN FEDERAL APPEALS COURT IN NEW YORK MR. POSNER'S LAWYERS ARGUED THAT THE DECEMBER FIRST ORDER BY JUDGE POLLACK DISENFRANCHISES THE SHAREHOLDERS THE ELECTION OF DIRECTORS WHO IN TURN APPOINT CORPORATE OFFICERS IS A FUNDAMENTAL INCIDENT OF SHAREHOLDERS' RIGHTS MR. POSNER'S BRIEF SAID WHETHER THE S. E. C. THE TRIAL COURT OR EVEN THE APPEALS COURT WOULD VOTE FOR THE POSNERS IS NOT THE ISSUE THE ISSUE IS WHETHER SHAREHOLDERS SHOULD BE GIVEN THE OPPORTUNITY TO MAKE UP THEIR OWN MINDS MR. POSNER'S SUPPORTERS SAY THAT THE CURRENT STOCK PRICE ISN'T THE ONLY FACTOR THAT HAS TO BE CONSIDERED IN EVALUATING THE IMPACT A TOP EXECUTIVE HAS ON A COMPANY IN A COURT DOCUMENT FILED BEFORE THE APPEALS COURT PHILLIP H. SMITH A SALEM DIRECTOR URGED THE COURT TO ALLOW MR. POSNER TO CONTINUE SERVING THE COMPANY IT IS MY OPINION THAT HE HAS KEEN INSIGHT AND AN ABILITY TO FOCUS ON KEY BASIC ISSUES THAT OTHERS MIGHT OVERLOOK HE IS ENCOURAGING AND SUPPORTING LONG RANGE PLANNING INITIATIVES WHICH ARE VITAL TO THE CORPORATION AND TO THE ENHANCEMENT OF SHAREHOLDERS' VALUES QUOTE MR. SMITH SAID IN THE COURT DOCUMENT S. E. C. OFFICIALS HOWEVER SAY THEY BELIEVE THE CHANGES IN THE STOCK PRICE REFLECT THE MARKET'S RELIEF THAT MR. POSNER NO LONGER IS RUNNING SALEM IN THE WAKE OF THE RULING SAID BARRY GOLDSMITH CHIEF LITIGATOR FOR THE S. E. C. THE MARKETPLACE HAS REACTED FAVORABLY SALEM ISN'T THE ONLY INSTANCE IN WHICH MR. POSNER'S REMOVAL FROM A COMPANY APPEARED TO BOOST ITS STOCK PRICE IN A SEPARATE CASE INVOLVING D. W. G. CORPORATION ANOTHER POSNER CONTROLLED COMPANY THE STOCK PRICE MORE THAN QUADRUPLED IN THE TWO YEARS AFTER A CONSENT DECREE WITH SHAREHOLDERS WAS ANNOUNCED IN NINETEEN NINETY ONE REMOVING MR. POSNER FROM ANY ACTIVE ROLE IN THE COMPANY NOW KNOWN AS TRIARC COMPANIES ON APPEAL IN THE SALEM CASE MR. BLOCK MAINTAINS THAT JUDGE POLLACK EXCEEDED HIS AUTHORITY BY APPROVING THE HARSH PENALTY AND THAT THE LAW PROVIDING SUCH MEASURES CAN'T BE APPLIED TO MR. POSNER MR. BLOCK ALSO ARGUES THAT MR. POSNER DID NOTHING WRONG AND THAT THE S. E. C. DIDN'T ADEQUATELY BACK UP ITS ALLEGATIONS AGAINST THE SEVENTY FOUR YEAR OLD MR. POSNER THERE WAS NO BASIS FOR JUDGE POLLACK'S DECISION MR. BLOCK SAID MR. POSNER RESIGNED HIS POSITIONS AT SALEM ON JANUARY FOURTH AND PENDING HIS APPEAL HAS TURNED OVER THREE POINT SIX MILLION DOLLARS SOUGHT BY THE S. E. C. IN ALLEGEDLY ILLEGAL PROFITS UNITED TECHNOLOGIES CORPORATION REPORTED A FOURTH QUARTER PROFIT REVERSING A YEAR EARLIER NET LOSS EARNINGS ROSE THIRTY SEVEN PERCENT IF ONE TIME CHARGES ARE EXCLUDED FROM THE NINETEEN NINETY TWO PERIOD BUT THE HARTFORD CONNECTICUT COMPANY SAID THE CONTINUED WEAKNESS IN ITS AEROSPACE BUSINESS WHICH INCLUDES ITS PRATT AND WHITNEY JET ENGINE UNIT MAY RESULT IN EMPLOYMENT REDUCTIONS BEYOND THE PREVIOUSLY ANNOUNCED RESTRUCTURING THE COMPANY'S FOURTH QUARTER PROFIT OF ONE HUNDRED THIRTY SIX MILLION DOLLARS OR NINETY EIGHT CENTS A PRIMARY SHARE WAS IN LINE WITH ANALYSTS' EXPECTATIONS IN THE NINETEEN NINETY TWO FOURTH QUARTER THE COMPANY HAD A NET LOSS OF THREE HUNDRED THIRTY THREE MILLION DOLLARS OR TWO DOLLARS AND SEVENTY SEVEN CENTS A SHARE BEFORE THE ONE TIME CHARGES RELATED TO ITS EXPOSURE TO THE COMMERCIAL AIRLINE INDUSTRY AND CERTAIN OTHER CONTRACTS AND THE RESTRUCTURING THE COMPANY EARNED NINETY NINE MILLION DOLLARS OR SIXTY EIGHT CENTS A FULLY DILUTED SHARE REVENUE IN THE LATEST PERIOD FELL TO FIVE POINT FIVE BILLION DOLLARS FROM FIVE POINT EIGHT BILLION DOLLARS IN NINETEEN NINETY TWO IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY UNITED TECHNOLOGIES STOCK CLOSED AT SIXTY FOUR POINT EIGHT SEVEN FIVE DOLLARS UP SIXTY TWO POINT FIVE CENTS ROBERT F. DANIELL CHAIRMAN SAID THE COMPANY QUOTE ACHIEVED ITS PERFORMANCE GOALS IN NINETEEN NINETY THREE DESPITE THE CONTINUING WEAKNESS IN THE AIRLINE INDUSTRY AND THE EUROPEAN RECESSION QUOTE THE COMPANY SAID ALL ITS BUSINESSES POSTED HIGHER OPERATING INCOME IN NINETEEN NINETY THREE EXCEPT FOR ITS PRATT AND WHITNEY UNIT GEORGE DAVID PRESIDENT PREDICTED IN AN INTERVIEW THAT NINETEEN NINETY FOUR WILL BE AN UP YEAR HE DECLINED TO MAKE A FORECAST BUT SAID COMPANY OFFICIALS AREN'T UNCOMFORTABLE WITH THE MEAN OF ANALYSTS' EARNINGS PROJECTIONS WHICH IS FOUR DOLLARS AND THIRTY ONE CENTS A FULLY DILUTED SHARE COMPARED WITH NINETEEN NINETY THREE'S FULLY DILUTED THREE DOLLARS AND THIRTY CENTS IN NINETEEN NINETY THREE MR. DAVID SAID THE COMPANY'S CARRIER OTIS AUTOMOTIVE AND FLIGHT SYSTEMS UNITS TOGETHER EARNED FIFTEEN PERCENT MORE THAN THE PREVIOUS YEAR HE SAID HE WAS ENCOURAGED THAT PRATT AND WHITNEY'S EARNINGS DURING THE SECOND HALF OF NINETEEN NINETY THREE RECOVERED FROM THE SEVERELY DEPRESSED LEVELS OF A YEAR EARLIER PRATT AND WHITNEY'S OPERATING PROFIT IN THE NINETEEN NINETY THREE FOURTH QUARTER WAS SEVENTY SEVEN MILLION DOLLARS ALMOST DOUBLE THE THIRTY NINE MILLION DOLLARS IT POSTED A YEAR EARLIER HE ATTRIBUTED THE INCREASE TO HIGHER SALES OF COMMERCIAL ENGINE SPARE PARTS AND CONTINUED COST IMPROVEMENTS HE SAID THE RESTRUCTURING HAS REDUCED THE WORK FORCE BY TWENTY FOUR THOUSAND SEVEN HUNDRED THROUGH THE END OF LAST YEAR ABOUT NINETY FIVE PERCENT OF THE TWENTY SIX THOUSAND ONE HUNDRED JOBS THE COMPANY HAD SAID IT WOULD ELIMINATE BY NINETEEN NINETY FIVE BUT HE SAID WEAK MARKETS ESPECIALLY AEROSPACE MAY INCREASE THE REDUCTION BEYOND THIS LEVEL HE DECLINED TO ESTIMATE BY HOW MUCH THE COMPANY CURRENTLY HAS ONE HUNDRED SIXTY EIGHT THOUSAND SIX HUNDRED EMPLOYEES FOR ALL OF NINETEEN NINETY THREE UNITED TECHNOLOGIES HAD NET INCOME OF FOUR HUNDRED EIGHTY SEVEN MILLION DOLLARS OR THREE DOLLARS AND FIFTY THREE CENTS A PRIMARY SHARE THAT WAS UP ABOUT FOUR POINT TWO PERCENT FROM FOUR HUNDRED SIXTY SEVEN MILLION DOLLARS OR THREE DOLLARS AND TWENTY TWO CENTS A FULLY DILUTED SHARE IN NINETEEN NINETY TWO BEFORE ONE TIME ACCOUNTING CHANGES AND SPECIAL CHARGES TAKEN IN NINETEEN NINETY TWO INCLUDING THE CHARGES AND ACCOUNTING CHANGES RELATED TO POST RETIREMENT BENEFITS UNITED TECHNOLOGIES HAD A NET LOSS IN NINETEEN NINETY TWO OF TWO HUNDRED EIGHTY SEVEN MILLION DOLLARS OR TWO DOLLARS AND SIXTY SEVEN CENTS A SHARE LAST YEAR'S REVENUE DECLINED TO TWENTY ONE POINT ONE BILLION DOLLARS FROM TWENTY TWO BILLION DOLLARS IN NINETEEN NINETY TWO BESIDES THE FALL OFF IN AEROSPACE THE STRONGER U. S. DOLLAR AGAINST MAJOR EUROPEAN CURRENCIES LOWERED REVENUE AND EARNINGS IN NINETEEN NINETY THREE THE COMPANY SAID THE LATTER REDUCED REVENUE BY SIX HUNDRED TWO MILLION DOLLARS AND EARNINGS BY NINETEEN CENTS A FULLY DILUTED SHARE AMERICAN GREETINGS CORPORATION EXPECTS OPERATING PROFIT FOR THE FISCAL YEAR ENDING FEBRUARY TWENTY EIGHTH OF ABOUT ONE DOLLAR AND SEVENTY FIVE CENTS A SHARE TO ONE DOLLAR AND SEVENTY SIX CENTS A SHARE HENRY LOWENTHAL SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE GREETING CARDS CONCERN QUOTE WILL MEET THE CONSENSUS WALL STREET EARNINGS EXPECTATIONS QUOTE FOR FISCAL NINETEEN NINETY FOUR MR. LOWENTHAL SAID IN AN INTERVIEW HE DEFINED THE CONSENSUS AS IN THE AREA OF ONE DOLLAR AND SEVENTY FIVE CENTS TO ONE DOLLAR AND SEVENTY SIX CENTS A SHARE THAT ESTIMATE EXCLUDES AN EXTRAORDINARY CHARGE OF TWENTY THREE CENTS A SHARE FOR CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING FOR POSTRETIREMENT BENEFITS AND INCOME TAXES WHICH WAS TAKEN IN THE FIRST QUARTER IN FISCAL NINETEEN NINETY THREE CLEVELAND BASED AMERICAN GREETINGS EARNED ONE HUNDRED TWELVE POINT THREE MILLION DOLLARS OR ONE DOLLAR AND FIFTY FIVE CENTS A SHARE AFTER ADJUSTMENT FOR A TWO FOR ONE STOCK SPLIT LAST DECEMBER REVENUE TOTALED ONE POINT SIX NINE BILLION DOLLARS REVENUE IN FISCAL NINETEEN NINETY FOUR PROBABLY WILL RISE BETWEEN FIVE PERCENT AND SIX PERCENT MR. LOWENTHAL SAID SALES OF GREETING CARDS IN THE U. S. THE COMPANY'S LARGEST BUSINESS WILL GROW BY SIX PERCENT TO EIGHT PERCENT THIS YEAR MAINLY BECAUSE OF HIGHER AVERAGE PRICES HE ADDED NORFOLK VIRGINIA A CHILD WHO HAD BEEN GENETICALLY SCREENED FOR INCURABLE TAY SACHS DISEASE AS AN EIGHT CELL PRE EMBRYO WAS BORN YESTERDAY AT BAPTIST HOSPITAL IN ORANGE TEXAS THE CHILD WAS TESTED AS A PRE EMBRYO THAT HAD NOT YET BEEN IMPLANTED INTO HER MOTHER'S WOMB DOCTORS WITHDREW A SINGLE CELL FROM EGGS THAT WERE FERTILIZED QUOTE IN VITRO QUOTE OR OUTSIDE THE MOTHER TESTED FOR TAY SACHS AND THEN THREE QUOTE CLEAN QUOTE EGGS WERE IMPLANTED IN THE MOTHER'S UTERUS MOTHER AND DAUGHTER WERE DOING WELL SAID WILLIAM E. GIBBONS THE FAMILY'S DOCTOR AT THE JONES INSTITUTE FOR REPRODUCTIVE MEDICINE HERE THE BABY'S PARENTS EACH CARRY THE GENE FOR TAY SACHS WHICH KILLED THEIR FIRST DAUGHTER AT AGE THREE WITHOUT THE TEST THEY HAVE A TWENTY FIVE PERCENT CHANCE OF HAVING A CHILD WITH TAY SACHS THE TECHNOLOGY COULD HELP COUPLES WHO CARRY OTHER INHERITED DISEASES SUCH AS SICKLE CELL ANEMIA AND HEMOPHILIA DOCTORS IN ENGLAND RECENTLY USED A SIMILAR PROCEDURE TO HELP A COUPLE PREDISPOSED TO CYSTIC FIBROSIS GIVE BIRTH TO A HEALTHY INFANT SAID MICHAEL SNABES OF THE DEPARTMENT OF OBSTETRICS AND GYNECOLOGY AT THE BAYLOR COLLEGE JOHN FLETCHER DIRECTOR OF THE CENTER FOR BIOMEDICAL ETHICS AT THE UNIVERSITY OF VIRGINIA PRAISED THE PROCEDURE BUT SAID IT RAISES QUESTIONS ABOUT FUTURE DEVELOPMENTS IN HANDLING DEFECTIVE GENES WHAT PEOPLE ARE AFRAID OF IS ONCE YOU START MANIPULATING GENES IN THE EMBRYO YOU COULD MOVE FROM TREATING THE DISEASE TO AFFECTING CHARACTERISTICS THAT DON'T HAVE ANYTHING TO DO WITH THE DISEASE LIKE SKIN COLOR HEIGHT WEIGHT LENDING LOSSES FORCE LIBRARIES TO STEP UP SECURITY ON STEPPED DOWN BUDGETS LIBRARIES EXPECT TO LOSE ONE POINT ONE PERCENT OF THEIR MATERIALS FROM NON RETURNS ALONE EACH YEAR SAYS THE AMERICAN LIBRARY ASSOCIATION IN CHICAGO A SPOKESMAN FOR THE ATLANTA FULTON COUNTY LIBRARY SYSTEM SAYS QUOTE PEOPLE FEEL LIKE THEIR TAX DOLLARS PAID FOR IT SO THEY DON'T THINK OF IT AS THEFT QUOTE C. D.S TAPES AND VIDEOS ARE PARTICULARLY TEMPTING FOR THEIR RESALE VALUE SO THE PUBLIC LIBRARY OF CINCINNATI AND HAMILTON COUNTY THE ATLANTA FULTON SYSTEM AND OTHERS LIMIT THE NUMBER OF C. D.S BORROWERS CAN CHECK OUT SOME LIBRARIES INCLUDING HOUSTON'S TURN TO PROFESSIONAL COLLECTION SERVICES FOR HELP THE CARNEGIE LIBRARY IN PITTSBURGH SAYS TRANSIENT STUDENTS ARE TOUGH TO TRACK BUT SO ARE LAWYERS THE BERGEN COUNTY LAW LIBRARY IN NEW JERSEY SAYS RAZOR BLADES ARE OFTEN USED TO SLICE OUT CASES IT'S AN OLD LAW SCHOOL TRICK THE LIBRARIAN SAYS THE PUBLIC LIBRARY IN CICERO ILLINOIS TAKES A TOUGHER POLICY STAND ON ISSUING CARDS TO GET A CARD IN CICERO APPLICANTS MUST SHOW TWO FORMS OF I. D. AND A REFERENCE AND WAIT THREE DAYS TO IMPROVE SAFETY THE TWENTY THREE BRANCH CHARLOTTE N. C. AREA SYSTEM INSTALLED PANIC BUTTONS UNDER LIBRARIANS' DESKS PRINTING ON EGGSHELLS AND SUCH GETS CONSUMERS TO DEVOUR THE MESSAGE CONTINUOUS INK JET PRINTING TECHNOLOGY COUPLED WITH NEW FOOD GRADE FLUIDS PERMITS MORE EDIBLE ADVERTISING PROPONENTS SAY ACE BAKING COMPANY OF GREEN BAY WISCONSIN USES THE PROCESS TO ZAP LOONEY TUNES CHARACTERS ON ICE CREAM CONES AND AMERICAN CRYSTAL SUGAR COMPANY IN MOORHEAD MINNESOTA CODES ITS PAPER BAGS OF SUGAR WITH THE DOT MATRIX PRINTERS PENNSYLVANIA EGG PRODUCER R. W. SAUDER INCORPORATED PLANS TO USE THE SYSTEM TO MARK A BRAND NAME ON EGGS AND TO PRINT U. S. ON THOSE IT EXPORTS VIDEOJET SYSTEMS INTERNATIONAL IN WOOD DALE ILLINOIS SAYS ONLY A DOZEN OR TWO FOOD PROCESSORS ARE USING ITS PROCESS SO FAR BUT IT EXPECTS GROWTH AS MARKETERS CATCH ON TO NEW ADVERTISING AND CODING USES INK JET PRINTING USES ELECTRICAL IMPULSES TO SHOOT TINY DROPS OF LIQUID ONTO DELICATE SURFACES WHERE THE NONCONTACT PRINTING DRIES INSTANTLY A SYSTEM COSTS ABOUT FIFTEEN THOUSAND DOLLARS URBAN GOLF SWINGS TO THE FORE POWERED BY THE REAL ESTATE DOWN STROKE AS DEMAND GROWS FOR GOLF FACILITIES DRIVING RANGES AND EVEN A NINE HOLE COURSE ARE OPENING IN DOWNTOWN AREAS IN LIEU OF PLANNED HIGH RISES STYMIED BY THE REAL ESTATE SLUMP QUOTE IT PROVIDES FOR INTERIM USE OF LAND THAT OTHERWISE WOULD SIT UNDEVELOPED QUOTE SAYS CHARLES TOURTELLOTTE OF VINTAGE GROUP THE DENVER FIRM IS BUILDING THE THREE POINT FIVE MILLION DOLLAR NINE HOLE COURSE AND DRIVING RANGE IN A THIRTY ONE ACRE CHICAGO SITE ZONED FOR OFFICE BUILDINGS AND CONDOS IN SAN FRANCISCO THE YEAR OLD MISSION BAY GOLF CENTER SITS ON SEVEN POINT FIVE ACRES NEAR THE FINANCIAL DISTRICT THE SITE WAS SLATED FOR A SCHOOL AND PLAYGROUND UNDER A STALLED PLAN THE CENTERS RUN ON SHORT TERM LEASES THAT LET OWNERS RECLAIM LAND FOR BUILDINGS LATER SAYS STEVE DI COSTANZO OF THE GOLF RANGE AND RECREATION ASSOCIATION THE SAN FRANCISCO CENTER IS LEASED FOR FIVE YEAR PERIODS THE CHICAGO SITE HAS A FIFTEEN YEAR LEASE BUT THE OWNER CAN RECLAIM SOME PARCELS BEFORE THEN THE NUMBER OF FREE STANDING DRIVING RANGES GREW FOURTEEN PERCENT IN NINETEEN NINETY THREE AND EIGHTEEN PERCENT IN NINETEEN NINETY TWO MR. DI COSTANZO SAYS WHO WILL TAKE FLUFFY AFTER YOU'RE GONE TEXAS A AND M. UNIVERSITY'S STEVENSON COMPANION ANIMAL LIFE CARE CENTER WILL FOR A TWENTY FIVE THOUSAND DOLLAR BEQUEST THE CENTER OFFERS A HOME LIKE ATMOSPHERE FOR THIRTY PETS PLUS THE SERVICES OF A VETERINARY STUDENT ENDOWMENT INCOME COVERS THE PET'S CARE AND WHEN FLUFFY GOES THE FUND GOES TO A VET SCHOOL PROGRAM OF THE DONOR'S CHOICE AN R. X. FOR PHARMACISTS AN ELECTRONIC DISPLAY SYSTEM FROM NATIONAL DATA CORPORATION AND TRANS LUX CORPORATION FLASHES CUSTOMERS WHEN THEIR PRESCRIPTIONS ARE FILLED THE SYSTEM AIMS TO SAVE TIME AT LARGE INSTITUTIONAL PHARMACIES BUILD IT AND THEY WILL PAY SOME EIGHTY PERCENT OF SHOPPERS SURVEYED BY AMERICAN INTERNATIONAL COLLEGE SPRINGFIELD MASSACHUSETTS SAY THEY WOULD PAY EXTRA UP TO TWENTY PERCENT MORE ON A TWO HUNDRED DOLLAR ITEM SUCH AS A GAS GRILL OR V. C. R. IF THE MANUFACTURER WOULD ASSEMBLE THE GOODS REFINANCED BOOMERS ARE SHOPPING AGAIN BUT THEY WANT BARGAINS WHEN IT COMES TO CONSUMER SPENDING FORGET THE TWENTY FIVE TO THIRTY FOUR YEAR OLD BABY BUSTERS THEY ARE STILL STRETCHING TO BUY THAT FIRST HOUSE SAYS EDWARD YARDENI CHIEF ECONOMIST AT C. J. LAWRENCE WATCH THE AGING BOOMERS WHO TOOK ADVANTAGE OF LOW RATES TO REFINANCE THEIR MORTGAGES AND NOW WILL ENJOY MUCH LOWER MONTHLY MORTGAGE PAYMENTS FOR FIFTEEN TO THIRTY YEARS SURPRISE THE EXTRA MONTHLY CASH FLOW JUST ABOUT COVERS MONTHLY LEASE PAYMENTS FOR A NEW CAR BESIDES WHEELS THE BOOMER JUGGERNAUT IS INTERESTED IN HOUSEHOLD DURABLE GOODS NOW THAT THEY'RE FEELING MORE SECURE ABOUT THEIR JOBS THEY'LL PROBABLY FIX UP THE HOUSES THEY'VE GOT MR. YARDENI FIGURES BUT DON'T EXPECT THE LUXURIES TO START FLOWING WE'RE STILL IN THE PRICE CLUB ERA HERE HE SAYS OVERALL HOMEOWNERS ARE SAVING AS MUCH AS FIFTY BILLION DOLLARS A YEAR FROM THE MORTGAGE REFINANCINGS THE SECURITIES FIRM ECONOMIST SAYS BRIEFS BLOCK THAT CHOLESTEROL THE FIREHOUSE RESTAURANT IN NEW YORK OFFERS AN ALL YOU CAN EAT SUPER BOWL SUNDAY MENU OF CHICKEN WINGS PIZZA AND FRENCH FRIES MEANWHILE FOR THOSE WHO AREN'T INTO PIGSKIN THE DECORATIVE FABRICS CHAIN CALICO CORNERS PROMOTES AN ALTERNATIVE WITH ITS SUPERBOLT SALE WHILE NINETEEN NINETY FOUR OPENS WITH CONSIDERABLE OPTIMISM ABOUT U. S. ECONOMIC PROSPECTS WITH THREE PERCENT GROWTH WIDELY EXPECTED APPARENTLY IT IS TO BE A YEAR WHEN GOVERNMENTS IN THE INDUSTRIAL WORLD WILL BE UNDER MORE PRESSURE TO DO SOMETHING ABOUT UNEMPLOYMENT THIS IS OF COURSE LATE IN THE DAY WHILE THE LIBERAL MARKET ORGANIZED ECONOMIES AND THEIR GOVERNMENTS HAVE BEEN EXTOLLING THE VIRTUES OF THEIR ECONOMIC SYSTEM TO EASTERN EUROPE IN FACT THE CAPITALIST ECONOMIES HAVE BEEN SEEMING TO VALIDATE THE CHIEF CRITICISM BY THE COMMUNISTS OF CAPITALISM NAMELY THAT CAPITALISM GENERATES HIGH UNEMPLOYMENT IN ITS YEAR END ECONOMIC REPORT LAST MONTH THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT ESTIMATED THAT FOR THESE ADVANCED INDUSTRIAL COUNTRIES AS A WHOLE UNEMPLOYMENT THIS YEAR MIGHT REACH THIRTY FIVE MILLION LAST YEAR FOR MANY COUNTRIES IN WESTERN EUROPE THE UNEMPLOYMENT RATE WAS IN THE ELEVEN PERCENT ZONE AND IN SOME E. G. SPAIN AND FINLAND THE RATE WAS ABOUT TWENTY PERCENT THE U. S. ECONOMY WAS RELATIVELY STRONGER AND WILL BE STRONGER THAN EUROPE AND JAPAN IN NINETEEN NINETY FOUR BUT EVEN HERE EMPLOYMENT LAST YEAR WAS ROUGHLY TEN MILLION BELOW THE BASIC LABOR FORCE THAT ECONOMIC POLICIES NEED TO BE FOCUSED ON MEASURES TO ENCOURAGE A MORE RAPID EXPANSION OF OUTPUT AND EMPLOYMENT WOULD SEEM TO BE SELF EVIDENT IT IS ONLY REMARKABLE THAT THE YEAR FOR THIS FOCUS ON POLICIES TO GET MORE PEOPLE BACK TO WORK IS NINETEEN NINETY FOUR AND NOT NINETEEN NINETY THREE OR EVEN NINETEEN NINETY TWO OR NINETEEN NINETY ONE WE ARE NOW IN A LARGE AND PROTRACTED SHORTFALL FROM ANYTHING THAT COULD BE CALLED A NORMAL RETURN TO REASONABLY FULL EMPLOYMENT FROM THE NINETEEN NINETY TO NINETY ONE RECESSION THOSE ENTERING THE WORK FORCES IN WESTERN EUROPE AND EVEN IN THE U. S. CONFRONT LABOR MARKET CONDITIONS MORE NEARLY RESEMBLING THOSE OF THE LATE NINETEEN THIRTIES THAN THOSE PREVAILING DURING THE FOUR DECADES OR SO FOLLOWING WORLD WAR TWO THIS ABSENCE OF NEEDED ECONOMIC VIGOR STEMS FROM A COMPLEX MOSAIC OF CAUSES GOVERNMENTS OF THE EUROPEAN COMMUNITY WERE SO PREOCCUPIED WITH E. C. MATTERS THAT THEY NEGLECTED ATTENTION TO THE FUNDAMENTALS THAT DETERMINE THE BASIC CAPABILITY OF THEIR ECONOMIES BACK HOME TO CREATE NEW JOBS AND DELIVER RISING REAL INCOMES TO A WIDER SHARE OF THE POPULATION GERMANY HAD THE LARGE AND DIFFICULT PROBLEM OF ABSORBING THE ANTIQUATED ECONOMY OF EAST GERMANY FOR WHATEVER REASON AN IMPORTANT PART OF THE WORLD ECONOMY WESTERN EUROPE THAT FOR DECADES DEMONSTRATED A PERSISTING CAPABILITY TO OPERATE WITH LOWER UNEMPLOYMENT RATES THAN IN NORTH AMERICA NOW HAS THE DISTINCTION OF BEING THE WORLD'S MAJOR UNEMPLOYMENT PROBLEM THESE GOVERNMENTS ARE LIKE A FOOTBALL COACH SO INTRIGUED WITH HIS COMPUTER'S CAPACITY TO GENERATE INGENIOUS PLAYS THAT HE NEGLECTS BLOCKING AND TACKLING MOREOVER A MAJOR PART OF THIS EFFORT WAS AN ATTEMPT TO WELD CURRENCIES TOGETHER WHICH INVOLVED A SURRENDER OF ECONOMIC SOVEREIGNTY TO BRUSSELS OR FRANKFURT THAT PEOPLE UNDERSTANDABLY WERE NOT WILLING TO ACCEPT AND THEY CERTAINLY WERE NOT WILLING TO ACCEPT THE HIGH UNEMPLOYMENT THAT INEVITABLY FOLLOWED IN THE U. S. THE FLIRTATION WITH REALLY RAMPANT INFLATION AT THE END OF THE NINETEEN SEVENTIES HAS CONTINUED TO HAUNT THE MANAGEMENT OF ECONOMIC POLICY BROAD BASED MEASURES OF THE MONEY STOCK IN REAL TERMS CLOSED OUT NINETEEN NINETY THREE STILL BELOW THE LEVELS AT THE END OF NINETEEN NINETY EMPLOYMENT AND OUTPUT DO NOT MOVE PRECISELY WITH THESE MEASURES OF LIQUIDITY BUT NO OTHER EXPANSION AFTER A RECESSION SINCE WORLD WAR TWO HAS HAD TO STRUGGLE AGAINST A SHRINKING MONETARY STOCK IN REAL TERMS AND THE LETHARGIC PACE OF THE U. S. EXPANSION HAS BEEN CONSISTENT WITH THE ECONOMIC POLICIES WE HAVE PURSUED JAPAN'S BUBBLE PROBLEM HAS ALSO HAD AN ADVERSE EFFECT ON THE U. S. ECONOMY JAPAN IS OUR SECOND LARGEST EXPORT MARKET AND OUR EXPORTS TO JAPAN HAVE BEEN RUNNING BELOW YEAR EARLIER LEVELS THOUGH THE DECLINE IN OUR EXPORTS TO WESTERN EUROPE HAS BEEN RELATIVELY MORE SEVERE BY CONTRAST U. S. EXPORTS TO THE ASIAN TIGERS HONG KONG KOREA SINGAPORE TAIWAN HAVE BEEN RUNNING WELL AHEAD OF YEAR EARLIER VOLUMES IF GOVERNMENTS ARE SERIOUSLY GOING TO DEPLOY POLICIES TO GET THE THIRTY FIVE MILLION PEOPLE NOW UNEMPLOYED BACK TO WORK WHAT MIGHT THE ELEMENTS OF SUCH A STRATEGY FOR ECONOMIC POLICY BE GOVERNMENTS SHOULD DRAW THEIR BASIC SLOGAN FROM THE MEDICAL PROFESSION QUOTE FIRST DO NO HARM QUOTE A PACE OF MONETARY EXPANSION ADEQUATE NOT ONLY TO ACCOMMODATE BUT EVEN TO ENCOURAGE THE NEEDED MORE RAPID RATE OF GROWTH WOULD CERTAINLY DO NO HARM THE MORE RAPID EXPANSION IN OUTPUT AND EMPLOYMENT THAT IS NEEDED WILL NOT BE FORTHCOMING OTHERWISE FEW THINGS WILL GIVE CENTRAL BANKERS A BAD CASE OF NERVES MORE CERTAINLY THAN EVIDENCE THAT A LITTLE PROSPERITY MIGHT BREAK OUT BUT THIS AGONY WILL HAVE TO BE ENDURED WHAT ABOUT FISCAL POLICY FOR MORE THAN A HALF CENTURY MANAGING THE FISCAL OPERATIONS OF GOVERNMENT HAS BEEN ASSUMED TO BE THE EFFECTIVE WAY TO GUIDE THE ECONOMY ALONG THE RIGHT PATH WE MAY BE IN THE EARLY STAGES OF A TURNING POINT OF HISTORIC PROPORTIONS ON THIS MATTER TWO CONVICTIONS SEEM TO BE EMERGING ONE IS THAT A SO CALLED EXPANSIVE FISCAL OR BUDGET POLICY DOES NOT SEEM IN PRACTICE TO HAVE THE FAVORABLE EFFECT ON THE ECONOMY'S OUTPUT AND EMPLOYMENT THAT THE THEORY WOULD LEAD US TO EXPECT IN ITS YEAR END REVIEW OF THE OUTLOOK THE O. E. C. D. OBSERVED THAT WHERE DISCRETIONARY FISCAL MEASURES HAVE BEEN TAKEN TO SUPPORT DEMAND THE EFFECTS ON ACTIVITY APPEAR TO HAVE BEEN DISAPPOINTING THE SECOND CONVICTION IS THAT THE REMOVAL OF THE DISCIPLINE ON SPENDING FORMERLY IMPOSED BY THE REQUIREMENT THAT THE BUDGET BE BALANCED HAS ENABLED INTEREST GROUPS TO EXERT PRESSURES THAT HAVE OVERLOADED SOCIETY WITH GOVERNMENT FOR AT LEAST A DOZEN OF THE ADVANCED INDUSTRIAL COUNTRIES GOVERNMENT OUTLAYS NOW EXCEED FIFTY PERCENT OF THEIR GROSS DOMESTIC PRODUCT THEY ARE LED BY SWEDEN WHOSE GENERAL GOVERNMENT OUTLAYS IN NINETEEN NINETY THREE WERE EQUAL TO SEVENTY THREE POINT FIVE PERCENT OF G. D. P. THE INDUSTRIAL COUNTRIES IN SHORT SEEM TO BE MOVING INEXORABLY DOWN A TRAIL TO WHERE THE NATIONAL INCOME WILL ALL GO TO GOVERNMENT WITH GOVERNMENT DOLING IT BACK OUT TO PEOPLE ACCORDING TO THEIR NEEDS OR MORE PROBABLY ACCORDING TO POLITICAL PRESSURES SLOWLY THE VIEW IS COALESCING THAT THIS IS NOT THE RIGHT WAY TO RUN THINGS AND THAT MUCH STRONGER BARRIERS AGAINST SPENDING PRESSURES MUST NOW BE ERECTED THE GENERAL CONVICTION THAT BUDGETS SHOULD BE BALANCED ONCE SERVED THAT ROLE AND IT WORKED FROM ONE THOUSAND SEVEN HUNDRED EIGHTY NINE TO NINETEEN TWENTY NINE EXCLUDING WAR YEARS SURPLUS YEARS OUTNUMBERED DEFICIT YEARS THREE TO ONE ONE OF THE MOST DIFFICULT QUESTIONS FOR PUBLIC POLICY TODAY IS WHETHER MUCH OF THE UNEMPLOYMENT WE NOW SEE IS STRUCTURAL AND THEREFORE WOULD NOT BE RESPONSIVE TO A GENERALLY MORE VIGOROUS RATE OF ECONOMIC EXPANSION ARE THE UNEMPLOYED WHO NEED JOBS NOT WHERE THE NEW JOBS WOULD BE OPENING UP WOULD THERE BE SUCH A MISMATCH BETWEEN THE EDUCATION AND SKILL LEVELS OF THE UNEMPLOYED AND THOSE REQUIRED BY THE NEW EMPLOYMENT OPPORTUNITIES THAT A LARGE PROPORTION OF THESE PEOPLE WOULD REMAIN STRANDED HAVE GOVERNMENT PROGRAMS IN AND OF THEMSELVES POLITICALLY ATTRACTIVE BUILT SO MANY IMPEDIMENTS INTO JOB CREATION THAT IT WILL BE DIFFICULT TO GET BACK TO SOMETHING LIKE WHAT WE USED TO CALL REASONABLY FULL EMPLOYMENT SAY THE FIVE AND ONE HALF PERCENT UNEMPLOYMENT RATE THAT CHARACTERIZED MUCH OF THIS CENTURY UNTIL RECENT YEARS THESE WERE WORRIES IN THE EARLY NINETEEN EIGHTIES AND A MAJOR CONCERN AFTER THE NINETEEN SIXTY TO SIXTY ONE RECESSION AND STRUCTURAL PROBLEMS ARE FREQUENTLY CITED AS THE BASIC REASON FOR EUROPE'S EXCEPTIONALLY HIGH UNEMPLOYMENT RATES TODAY WORRIES ABOUT STRUCTURAL MISMATCHES IN THESE EARLIER PERIODS WE FOUND WERE OVERDONE WITH EXPANSIVE ECONOMIC POLICIES IN THE NINETEEN SIXTIES AND AGAIN IN THE NINETEEN EIGHTIES THE ECONOMY MOVED BACK TO REASONABLY FULL EMPLOYMENT NOW HOWEVER THERE MAY BE REASON FOR MORE CONCERN ABOUT STRUCTURAL UNEMPLOYMENT AND IT IS INCREASINGLY EVIDENT THAT THE IMPEDIMENTS TO REGAINING REASONABLY FULL EMPLOYMENT ARE GOVERNMENT PROGRAMS THEMSELVES THE RELUCTANCE OF BUSINESSES TO TAKE ON THE LARGE UNCERTAIN AND POSSIBLY OPEN ENDED LIABILITIES WITH EACH ADDED EMPLOYEE IS EVIDENT IN U. S. MANUFACTURING EMPLOYMENT WHILE THE NUMBER EMPLOYED IN MANUFACTURING LAST YEAR WAS LESS THAN IN NINETEEN NINETY THE AVERAGE NUMBER OF OVERTIME HOURS WORKED WAS HIGHER IN FACT HIGHER THAN FOR ANY OTHER YEAR IN THE PRIOR DECADE EXCEPT FOR NINETEEN EIGHTY EIGHT YET THERE IS NO SHORTAGE OF PEOPLE WHO WOULD LIKE TO HAVE A JOB IN MANUFACTURING THIS ALL COMES INTO FOCUS WITH WHAT WILL PROBABLY BE THIS YEAR'S MAJOR U. S. PUBLIC POLICY ISSUE NAMELY HEALTH CARE WHATEVER THE SPECIFICS OF THE PROGRAM ADOPTED MANDATING A HEAVY COST ON EMPLOYERS TO FINANCE THE PROGRAM WOULD BE ESSENTIALLY LEVYING A HEAVY EXCISE TAX ON EMPLOYMENT AND AN EXCISE TAX ON ANYTHING REDUCES DEMAND FOR IT THIS WILL BE THE SWORD OF DAMOCLES HANGING OVER THE HOPES OF THE UNEMPLOYED IN NINETEEN NINETY FOUR MR. MCCRACKEN A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IS A UNIVERSITY OF MICHIGAN PROFESSOR EMERITUS FROM THE START THEY SEEMED AN UNLIKELY COUPLE SHE IS AN ARTICULATE TWENTY TWO YEAR OLD SOPHISTICATE HE IS A THREE HUNDRED POUND BRUISER WITH A HABIT OF VOMITING ON PEOPLE HE DOESN'T LIKE ABOUT ALL THEY HAD GOING FOR THEM WAS A CERTAIN ANIMAL ATTRACTION FOR SHE IS KOKO PROBABLY THE MOST FAMOUS GORILLA SINCE KING KONG IN THE NINETEEN SEVENTIES KOKO AMAZED THE WORLD WITH DISPLAYS OF HER ABILITY TO COMMUNICATE WITH HUMAN BEINGS USING AMERICAN SIGN LANGUAGE TAUGHT TO HER BY HER HUMAN KEEPERS AT THE GORILLA FOUNDATION'S REDWOOD SHROUDED ENCAMPMENT HERE SHE HAD A PET KITTEN NAMED ALL BALL THAT SHE MOTHERED HE IS NDUME A MUSCLE BOUND SILVERBACK GORILLA WHO DESPITE A CERTAIN COARSENESS HAS BECOME THE LOVE OF KOKO'S LIFE FOR MORE THAN TEN YEARS KOKO'S HUMAN HANDLERS PENNY PATTERSON AND RON COHN HAVE KEPT THE FAMED APE MORE OR LESS OUT OF THE LIMELIGHT HOPING THAT KOKO WOULD FALL IN LOVE AND START A FAMILY IT HASN'T BEEN EASY THERE HAVE BEEN REJECTED SUITORS UNFULFILLED PASSIONS SEXUAL INFIDELITIES AND TROUBLE WITH MOTORCYCLE GANGS AND NOISY LOGGERS THERE HAVE BEEN TRIBULATIONS ENOUGH FOR THE SOAP OPERAS KOKO LIKES TO WATCH ON HER T. V. SET FOR KOKO'S HANDLERS HELPING HER FIND LOVE AND ACHIEVE MOTHERHOOD IS OF SCIENTIFIC IMPORTANCE DOCTOR PATTERSON A PSYCHOLOGIST AND DOCTOR COHN A BIOLOGIST HAVE BEEN WORKING WITH KOKO ALL HER LIFE THEY WANT TO FIND OUT IF KOKO'S GIFT OF GAB WILL BE PASSED ALONG TO HER OFFSPRING WHETHER SHE WILL TEACH IT TO HER BABIES THE QUESTION IS RELEVANT TO UNDERSTANDING TO WHAT EXTENT GORILLAS TRULY DO HAVE HUMAN CHARACTERISTICS QUOTE A LOT MORE IS AT STAKE HERE THAN KOKO'S LOVE LIFE QUOTE SAYS DOCTOR PATTERSON AND WHAT A TROUBLED LOVE LIFE IT HAS BEEN FOR STARTERS IT ISN'T EASY FOR A THREE HUNDRED FIFTY POUND GORILLA TO GET DATES EVEN IN CALIFORNIA GORILLAS IN GENERAL ARE FINICKY ABOUT SUCH THINGS AND KOKO SEEMS ESPECIALLY STANDOFFISH SOME SPECULATE THAT KOKO'S ACCOMPLISHMENTS MAKE HER A BIT DISDAINFUL OF RUN OF THE MILL MALES DOCTOR PATTERSON ISN'T SURE BUT KOKO CAN BE A BIT HAUGHTY SOMETIMES SHE SAYS MOREOVER A GOOD MAN IS HARD TO FIND KOKO'S FIRST PROSPECTIVE MATE WAS MICHAEL A LOWLAND GORILLA A YEAR HER JUNIOR WHO WAS CAPTURED IN CAMEROON FOR SEVERAL YEARS KOKO AND MICHAEL LIVED TOGETHER AND THERE WERE HOPEFUL SIGNS THAT SOMETHING LONGTERM MIGHT DEVELOP BUT MICHAEL HAD A BAD TEMPER NOT TO MENTION A BAD STOMACH HE WAS PRONE TO BOUTS OF RAGE WHICH DIDN'T ENDEAR HIM TO KOKO THEY STILL LIVE IN ADJOINING SUITES AT THE GORILLA FOUNDATION BUT THEY ARE JUST FRIENDS KOKO'S HANDLERS TURNED QUICKLY TO A MORE MODERN APPROACH IN THE EARLY NINETEEN EIGHTIES DOCTOR PATTERSON COMPILED TAPES OF THE WORLD'S MOST ELIGIBLE SILVERBACKS AS MATURE MALE LOWLAND GORILLAS ARE KNOWN FOR THE SILVERY HUE OF THEIR COATS SHE ROLLED THE TAPES FOR KOKO MOST LEFT HER COLD SUCH AS THE SNIPPET ON IVAN AN APE IN HIS THIRTIES WHO LIVES IN A CAGE AT A SHOPPING MALL IN TACOMA WASHINGTON WHEN IVAN POPPED UP KOKO ATTACKED THE SCREEN WITH HER STUFFED ALLIGATOR IVAN GOT THE INSTANT HEAVE HO DOCTOR PATTERSON RECALLS BUT THE VIDEO DATING DID TURN UP ONE HOT PROSPECT HIS NAME WAS BONGO HIS HOME IS THE ROME ZOO HE WAS KOKO'S ITALIAN STALLION DOCTOR PATTERSON RECALLS KOKO SIGNALED FURIOUSLY TO DOCTOR PATTERSON BY BLOWING KISSES RUBBING HER BELLY AND FOLDING HER ARMS AS IF CRADLING AN INFANT THAT BONGO WAS A HUNK BUT THIS MATCH WAS NOT TO BE THE ROME ZOO REFUSED TO LET BONGO AND KOKO GET TOGETHER KOKO FRIENDS SAY WAS CRUSHED SHE CRIED SHE MOPED THEN FINALLY SHE SEEMED RESIGNED TO HER LONELY STATE BUT THEN ONE SUNNY SPRING AFTERNOON IN NINETEEN NINETY ONE NDUME CAME INTO HER LIFE KOKO FLIPPED WHEN SHE SAW NDUME ON VIDEO SHE RACED UP TO THE MONITOR AND PLANTED KISSES ALL OVER HIS MUSCULAR IMAGE NDUME HAD A FEARSOME REPUTATION HIS HANDLERS AT THE BROOKFIELD ZOO JUST OUTSIDE CHICAGO HAD BEEN FORCED TO TAKE HIM OFF DISPLAY BECAUSE HE INSISTED ON BOMBARDING ZOO PATRONS WITH GORILLA DUNG AND THROWING UP ON ZOOKEEPERS HE WITH DIFFERENT MATES HAD ALREADY FATHERED FOUR BABIES BUT NONE OF THAT SEEMED TO MATTER TO KOKO A FIRST DATE WAS ARRANGED NDUME WAS TRANQUILIZED CRATED UP SHIPPED TO SAN JOSE AND TRUCKED TO WOODSIDE ABOUT THIRTY MILES SOUTH OF SAN FRANCISCO IT WENT LIKE A LOT OF FIRST DATES AS NDUME EDGED INTO KOKO'S CAGE KOKO BELTED HIM WITH A PLASTIC PIPE NDUME RETALIATED BY HEAVING BURLAP BAGS AT KOKO IT WAS A ROCKY START FOR SURE SAYS DOCTOR PATTERSON IT TOOK ABOUT A YEAR FOR KOKO AND NDUME TO STOP THROWING THINGS AT EACH OTHER EVERY ONCE IN A WHILE THEY STILL DO THE MOTORCYCLES WERE ALSO A PROBLEM THE GORILLA FOUNDATION IS ONLY ABOUT A MILE DOWN THE ROAD FROM A RESTAURANT WHERE CYCLISTS HANG OUT ON WEEKENDS DOZENS OF HOT ROD BIKERS ARE LINED UP OUTSIDE THE PLACE GUNNING THEIR ENGINES THE BIG BIKES WERE DRIVING THE GORILLAS BANANAS DOCTORS COHN AND PATTERSON HAVE DISCUSSED THE GORILLAS IN THEIR MIDST WITH BIKERS WHO ARE TRYING TO BE QUIETER MEANWHILE KOKO AND NDUME HAVING GONE BEYOND THEIR AWKWARD EARLY ENCOUNTERS WERE SHARING CHEWING GUM PLAYING WITH EACH OTHER'S DOLLS AND FALLING HEAD OVER HEELS BY LATE LAST YEAR THEY SEEMED READY TO SETTLE DOWN AND START A FAMILY BUT ANOTHER PROBLEM AROSE FOR SOME REASON PROBABLY STRESS RELATED KOKO HASN'T BEEN MENSTRUATING LATELY THOUGH FEMALE GORILLAS CAN PRODUCE YOUNG FROM ROUGHLY THE AGE OF TEN TO FORTY AND CAN LIVE TO THE AGE OF SIXTY KOKO THEORETICALLY IS IN HER CHILD BEARING PRIME TIME TO TREAT THE PROBLEM DOCTORS COHN AND PATTERSON HAVE BEEN PLANNING TO GIVE HER FEMALE HORMONES QUOTE IT SHOULD WORK AND WE SEE NO REASON WHY KOKO SHOULDN'T BE ABLE TO GET PREGNANT NOW THAT SHE AND NDUME ARE READY QUOTE SAYS DOCTOR PATTERSON BUT NOW THAT HAS BEEN PUT OFF BY YET ANOTHER INTRUSION LOGGING THE GORILLA FOUNDATION'S NEXT DOOR NEIGHBOR DEVELOPER STEVE PANKOWSKI IS CUTTING DOWN ABOUT FIVE HUNDRED TREES ON PROPERTY ADJACENT TO KOKO AND NDUME'S LOVE NEST CHAIN SAWS HOWLING AND TREES CRASHING AND TRUCKS GRINDING NOT EXACTLY MOOD MUSIC OBSERVES DOCTOR COHN THE NOISE GIVES KOKO DIARRHEA THAT'S NOT A BIG TURN ON FOR NDUME OBSERVES DOCTOR PATTERSON MR. PANKOWSKI'S LOGGER ROY WEBSTER SAYS HIS BOSS IS SYMPATHETIC TO THE GORILLAS' PLIGHT HE SAYS THEY PLAN TO TAKE STEPS TO MINIMIZE THE NOISE FROM THEIR LOGGING OPERATION AND TO CONSULT GORILLA EXPERTS OF THEIR OWN CHOOSING TO SATISFY THEMSELVES THAT DOCTORS COHN AND PATTERSON AREN'T EXAGGERATING THE PROBLEM BUT HIS BOSS HE SAYS INTENDS TO KEEP ON CUTTING TREES LOGGING IS LOUD MR. WEBSTER SAYS BUT I DON'T THINK IT SHOULD STOP THEM FROM ER WELL DOING WHATEVER THEY'RE DOING UP THERE KOKO HERSELF HAS MADE HER OWN ATTITUDE CLEAR WHEN MR. PANKOWSKI AMBLED UP THE WOODED PATHWAY NEAR HER CAGE LAST SUMMER KOKO PELTED HIM WITH DUNG AND IN A RARE RECENT INTERVIEW KOKO WAS ASKED WHAT SHE THINKS OF LOGGING SHE LAUNCHED INTO A FLURRY OF HAND SIGNALS LIKE SOME CONFUSED TRAFFIC COP SHE GRABBED HER HEAD WITH BOTH HANDS TRACED A FROWN ACROSS HER FACE SLAPPED HER BREAST DOCTOR PATTERSON'S TRANSLATION KOKO NOT LIKE BAD SAD NO UKRAINE'S PARLIAMENT APPROVED A PROGRAM TO SELL OFF A BROAD SWATH OF STATE OWNED BUSINESSES BY YEAR END PRIVATIZATIONS WERE AUTHORIZED MORE THAN A YEAR AGO BUT AS WITH MOST OTHER ECONOMIC REFORMS LITTLE HAS BEEN ACHIEVED THE NEW PROGRAM WOULD INCREASE THE PRIVATE SECTOR'S SHARE IN THE FORMER SOVIET REPUBLIC'S ECONOMY TO TWENTY EIGHT PERCENT FROM TWO PERCENT BY SELLING OFF TWENTY THOUSAND SMALL ENTERPRISES EIGHT THOUSAND MEDIUM SIZE AND LARGE FIRMS AND ONE THOUSAND FOUR HUNDRED UNFINISHED CONTRUCTION PROJECTS THOUGH MOST OF THE ASSETS WILL BE EXCHANGED FOR PRIVATIZATION VOUCHERS THAT WERE DISTRIBUTED FREE TO UKRAINIANS SALES OF MINORITY STAKES ARE EXPECTED TO RAISE TWO HUNDRED THIRTY MILLION DOLLARS OFFICIALS SAID FOREIGNERS BIDDING ON THE ASSETS WILL BE SUBJECT TO A SPECIAL EXCHANGE RATE OF FOUR HUNDRED TWENTY KARBOVANETS TO THE U. S. DOLLAR THE CURRENCY'S MARKET RATE HAS SWUNG RECENTLY TO TWELVE THOUSAND FIVE HUNDRED NINETY TWO TO THE DOLLAR FROM THIRTY ONE THOUSAND THE POLISH GOVERNMENT WAS ACCUSED OF WILDLY UNDERVALUING BANK SLASKI AS ITS SHARES SCORED A ONE DAY JUMP TO THREE HUNDRED THIRTEEN DOLLARS FROM THE TWENTY THREE DOLLAR INITIAL OFFERING PRICE THE PRIVATIZATION CHIEF AND POLITICIANS SAID THE UNDERPRICED SELL OFF WHICH HAD BEEN HELD UP AS A PRIVATIZATION MODEL IN EFFECT ROBBED POLAND'S TREASURY POLITICIANS ALSO FAULTED POLAND FOR ITS DEAL TO SELL A TWENTY FIVE POINT NINE PERCENT STRATEGIC STAKE TO THE DUTCH BANK AND INSURER INTERNATIONALE NEDERLANDEN GROEP B. V. WHICH NOW HAS A HUGE PAPER PROFIT THE GERMAN CABINET APPROVED DRAFT LEGISLATION TO REPEAL STRICT LIMITS IMPOSED IN A NINETEEN THIRTY THREE REBATE BAN ON RETAILERS' OFFERING DISCOUNTS MEANWHILE THE HDE RETAIL INDUSTRY GROUP PREDICTED WESTERN GERMAN RETAIL SALES WILL SHRINK AN INFLATION ADJUSTED FOUR PERCENT THIS YEAR FROM FOUR HUNDRED THIRTY FOUR BILLION DOLLARS LAST YEAR POSSIBLY ELIMINATING THIRTY THOUSAND JOBS THE CABINET ALSO ADVANCED REFORMS TO STREAMLINE LAWS ON CORPORATE RESTRUCTURINGS MAKING THEM MORE TRANSPARENT WITH BETTER REGULATORY OVERSIGHT BOTH MEASURES ARE PART OF A BROAD PLAN TO COMBAT UNEMPLOYMENT AND IMPROVE COMPETITIVENESS CHINA AGAIN BERATED THE HONG KONG GOVERNMENT FOR CONTINUING TO FINANCE BUILDING OF THE BRITISH COLONY'S NEW AIRPORT DESPITE BEIJING'S OPPOSITION IT SAID CHINA WON'T BE LIABLE FOR ANY HONG KONG DEBT IN THE PROJECT AND WON'T HONOR UNILATERALLY AWARDED AIRPORT RELATED CONTRACTS EXTENDING BEYOND JUNE THIRTIETH NINETEEN NINETY SEVEN WHEN THE TERRITORY REVERTS TO CHINESE CONTROL HONG KONG NOTED IT HASN'T BORROWED FOR THE WORK AND DOESN'T PLAN TO DO SO AND HASN'T GRANTED FRANCHISES OR CONTRACTS BEYOND NINETEEN NINETY SEVEN SO CHINA'S BROADSIDE WAS LINKED TO PRESSURING BRITAIN ON THEIR DISPUTE ABOUT BROADENING DEMOCRACY IN HONG KONG COMPANIES IN GERMANY APPEALED TO THE GOVERNMENT FOR MORE PROTECTION FROM THE SPREADING INFLUENCE OF ORGANIZED CRIME AND INDUSTRIAL ESPIONAGE AT A MEETING CALLED BY CHANCELLOR HELMUT KOHL TO DISCUSS THE RISING CRIME RATE THE CHAMBER OF INDUSTRY AND COMMERCE SAID COMPANIES AND BUSINESS ASSOCIATIONS NEEDED THE HELP OF POLICE AND INTELLIGENCE SERVICES TO WARD OFF MAFIA STYLE GANGS THE CONFERENCE OF BUSINESS POLICE AND SOCIAL LEADERS WAS PART OF AN EFFORT BY MR. KOHL'S CENTER RIGHT COALITION SLUMPING IN POPULARITY POLLS AHEAD OF OCTOBER ELECTIONS TO MAKE LAW AND ORDER A TOP CAMPAIGN ISSUE CHINA PLANS TO OPEN IN APRIL A MEAT FUTURES EXCHANGE IN CHENGDU THE CAPITAL OF SICHUAN PROVINCE WHICH IS A MAJOR PORK PRODUCING REGION THE EXCHANGE WILL ADMIT DOMESTIC AND FOREIGN ENTERPRISES BROKERAGE COMPANIES AND FINANCIAL INSTITUTIONS AS MEMBERS CHENGDU IN SOUTHWEST CHINA ALSO HAS THE COUNTRY'S LARGEST WHOLESALE MEAT MARKET WHICH HAS GROWN RAPIDLY SINCE IT WAS SET UP IN NINETEEN NINETY ONE IN A MOVE LIKELY TO RENEW CALLS FOR AN INDEPENDENT EUROPEAN UNION COMPETITION AGENCY THE E. U. COMMISSION CLEARED A STEEL TUBING MERGER OVER THE OBJECTIONS OF ITS OWN TOP ANTITRUST OFFICIALS THE DECISION ALLOWING MANNESMANN A. G. OF GERMANY VALLOUREC S. A. OF FRANCE AND ILVA COMPANY OF ITALY TO COMBINE THEIR STAINLESS STEEL TUBING UNITS MARKS A SETBACK FOR THE E. U. COMPETITION CHIEF WHO OPPOSED THE DEAL AND FOR THOSE WHO WANT MERGER CASES DECIDED SOLELY ON COMPETITION FACTORS SUCH AS MARKET SHARE IN THE E. U. FORMERLY THE EUROPEAN COMMUNITY IT REPRESENTS A VICTORY FOR E. U. OFFICIALS WHO MAINTAIN THAT THE TWELVE MEMBER TRADE BLOC NEEDS AN AGGRESSIVE INDUSTRIAL POLICY IN BELEAGUERED SECTORS SUCH AS STEEL THE COMMISSION WAS FIERCELY DIVIDED ON THE ISSUE SOURCES SAID NOTING THIS WAS CERTAIN TO BE SEIZED UPON BY E. U. CRITICS WHO SEEK AN AUTONOMOUS AGENCY REMOVED FROM POLITICAL CONSIDERATIONS TO DEAL WITH EUROPEAN MERGERS ONLY ONE PROPOSAL HAS BEEN BLOCKED SINCE THE E. U. MERGER CONTROL LAW TOOK EFFECT THREE YEARS AGO HONG KONG WHICH HAS ONE HUNDRED FORTY THOUSAND REGISTERED DOGS SAID ALL CANINES MUST HAVE MICROCHIPS IMPLANTED IN THEIR EARS SO THAT OWNERS OF WANDERING PETS CAN BE IDENTIFIED THE MOVE FOLLOWED A DOG'S FATAL MAULING OF A GIRL IN THE BRITISH COLONY WHICH HAS EIGHTEEN THOUSAND STRAY MUTTS INDONESIAN AUTHORITIES ARE DETAINING CHILDREN WHO LINE ROADS BY THE HUNDREDS TO RENT THEMSELVES TO MOTORISTS WHO OTHERWISE WOULD BE BANNED FROM MAIN ROADS IN MORNING RUSH HOURS A RULE TO COMBAT CHRONIC TRAFFIC PROBLEMS REQUIRES CARS TO HAVE AT LEAST THREE OCCUPANTS WHAT TREASURY SECURITY MATURES IN FIFTEEN YEARS BUT YIELDS AS MUCH AS THE THIRTY YEAR BOND FOR A DOZEN INVESTORS YESTERDAY THE ANSWER WAS A SYNTHETIC FIFTEEN YEAR TREASURY NOTE IT'S A NEW KIND OF BOND THAT WALL STREET FIRMS ARE RUSHING TO MARKET TO FILL A VOID IN THE MARKET FOR TREASURY SECURITIES AND CREATE ALTERNATIVES FOR YIELD STARVED BUYERS OF CORPORATE AND TREASURY BONDS YESTERDAY C. S. FIRST BOSTON CORPORATION A UNIT OF C. S. HOLDING A. G. OF SWITZERLAND SOLD FIVE HUNDRED MILLION DOLLARS OF THESE FIFTEEN YEAR NOTES WHICH WERE MADE BY POOLING THIRTY DIFFERENT TREASURY SECURITIES AND USING THEIR COUPON AND PRINCIPAL PAYMENTS TO PAY INTEREST AND PRINCIPAL ON THE NEW NOTES LIKE TREASURYS THE NOTES WILL BE NONCALLABLE THEY CARRY A SIX PERCENT COUPON AND WERE SOLD AT A YIELD OF SIX POINT THREE OH PERCENT THE SAME YIELD AS THE BENCHMARK THIRTY YEAR TREASURY BOND YESTERDAY BUT YOU CAN'T GET SOMETHING FOR NOTHING IN THE BOND MARKET AND THE FIFTEEN YEAR SYNTHETIC TREASURY NOTE IS NO EXCEPTION WHAT INVESTORS GAIN IN YIELD THEY WILL LOSE IN LIQUIDITY SAYS KEVIN REED MANAGER OF FIXED INCOME INVESTMENTS AT FIRST NATIONAL BANK OF COMMERCE IN NEW ORLEANS MR. REED BOUGHT SOME OF THE NOTES FOR A MUTUAL FUND HE MANAGES THE BONDS YIELD SOMETHING QUOTE SIMILAR TO A DOUBLE A RATED CORPORATE BOND BUT YOU HAVE SUBSTANTIALLY HIGHER CREDIT QUALITY QUOTE HE SAID BUT YOU GIVE UP SOME LIQUIDITY HE WARNED IF YOU GO TO X. Y. Z. FIRM INSTEAD OF C. S. FIRST BOSTON WHICH SOLD THE NOTES THEY'RE NOT GOING TO BID ON IT THAT MEANS THAT IF BOND PRICES FALL IT MAY BE DIFFICULT FOR AN INVESTOR TO SELL THE NOTES JOHN COSTAS HEAD OF GOVERNMENT BOND TRADING AT C. S. FIRST BOSTON SAID HIS FIRM WOULD MAKE SURE TO CONTINUE MAKING MARKETS IN THE NEW SECURITY TO MAINTAIN ITS LIQUIDITY BUT IF THE MARKET TAKES A NASTY TURN THERE IS NO GUARANTEE THAT THE NOTES WILL BE EASY TO BUY AND SELL ON FRIDAY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION SOLD A SIMILAR SIX HUNDRED MILLION DOLLARS FIFTEEN YEAR OFFERING OTHER FIRMS HAVE ALREADY SOLD SIMILAR VERSIONS OF THESE SECURITIES CHASE SECURITIES INCORPORATED TERMED THE FIRST SUCH ISSUE IN JULY SPOTS OR SYNTHETIC PAR TREASURY SECURITIES D. L. J. CALLED ITS ISSUE SORTS WHILE C. S. FIRST BOSTON HAS DUBBED THEM TREASURY LINCS FOR ITS PART MERRILL LYNCH AND COMPANY NAMED THE SECURITIES IT ISSUED LAST NOVEMBER STEERS MERRILL LYNCH IS EXPECTED TO LAUNCH A FIFTEEN YEAR SYNTHETIC ISSUE NEXT WEEK WHILE C. S. FIRST BOSTON AND D. L. J. BOTH SAY THEY WILL FOLLOW WITH ADDITIONAL ISSUES OFFICIALS AT BEAR STEARNS AND COMPANY AND LEHMAN GOVERNMENT SECURITIES INCORPORATED ALSO SAY THEY ARE CONSIDERING ISSUING SIMILAR SECURITIES UNTIL NINETEEN EIGHTY FIVE THE GOVERNMENT SOLD THIRTY YEAR BONDS THAT WERE NONCALLABLE FOR TWENTY FIVE YEARS SAYS LOUIS CRANDALL CHIEF ECONOMIST AT R. H. WRIGHTSON AND ASSOCIATES INCORPORATED A FIRM THAT DOES TREASURY MARKET ANALYSIS IN NINETEEN EIGHTY FIVE THE GOVERNMENT BEGAN MAKING ALL THIRTY YEAR BONDS NONCALLABLE NEARLY A DECADE LATER THIS CHANGE HAS RESULTED IN A SHORTAGE OF NONCALLABLE TREASURYS MATURING IN FIFTEEN YEARS ALL TREASURYS MATURING IN FIFTEEN YEARS CAN BE CALLED BY THE GOVERNMENT THIS SITUATION HAS HELPED TO LIFT THE PRICES OF TREASURYS WITH SLIGHTLY LONGER OR SHORTER MATURITIES SO HIGH THAT THEY HAVE BECOME PROHIBITIVELY EXPENSIVE FOR MANY INVESTORS DEALERS ARE TRYING TO CREATE AN ALTERNATIVE TO HIGHLY RATED CORPORATE BONDS WHICH OFFER PALTRY YIELDS AT AN EXTREMELY TIGHT YIELD SPREAD OVER COMPARABLE TREASURY SECURITIES THE NEW PRODUCTS ALSO OFFER INVESTORS HIGH QUALITY PAPER AMID A DROUGHT OF NEW ISSUES IN THE INVESTMENT GRADE CORPORATE BOND MARKET FIRMS CREATE THE SECURITIES BY GATHERING STRIPPED TREASURYS TO PRODUCE THE DESIRED INCOME STREAM THE D. L. J. AND C. S. FIRST BOSTON DEALS FOR EXAMPLE CONSIST OF THIRTY NONCALLABLE TREASURY STRIPS THE STRIPS ARE PLACED INTO A CUSTODIAL ACCOUNT ACTING AS COLLATERAL FOR THE SYNTHETIC BONDS THUS AN INVESTOR IS ACTUALLY BUYING A CUSTODIAL RECEIPT IN THE CASE OF THE C. S. FIRST BOSTON DEAL INVESTORS CAN GO TO THE CUSTODIAN AND EXCHANGE THE RECEIPT FOR THE SECURITIES WHICH PROVIDES AN ELEMENT OF LIQUIDITY THE D. L. J. AND C. S. FIRST BOSTON ISSUES AIMED AT LARGER INVESTORS WERE SOLD IN LOTS OF ONE HUNDRED THOUSAND DOLLARS QUOTE THE PRODUCT IS LARGELY AN INSTITUTIONAL PRODUCT QUOTE SAID JOHN FRIEL A MANAGING DIRECTOR AT D. L. J. THE INVESTORS IN THE C. S. FIRST BOSTON DEAL INCLUDED STATE AND CORPORATE PENSION FUND MANAGERS INSURANCE COMPANIES AND MONEY MANAGERS CORPORATIONS HAVEN'T IGNORED THE DEMAND FOR NONCALLABLE SECURITIES WITH FIFTEEN YEAR MATURITIES THEY HAVE SOLD MANY OF THEM IN RECENT MONTHS A FLOOD OF THE NEW SYNTHETIC FIFTEEN YEAR TREASURY NOTES COULD PUSH THE PRICES OF THESE CORPORATE SECURITIES LOWER ANALYSTS SAY MEANWHILE TREASURY NOTES AND BONDS CHALKED UP MODERATE GAINS YESTERDAY AS THE MARKET WAS ABLE TO WEATHER SOMEWHAT DISAPPOINTING BIDDING AT THE GOVERNMENT'S AUCTION OF NEW FIVE YEAR NOTES THE MARKET'S ABILITY TO POST GAINS IN THE FACE OF A LUKEWARM AUCTION YESTERDAY MARKED A REVERSAL FROM TUESDAY'S SESSION WHEN SLIGHTLY WEAKER THAN EXPECTED BIDDING FOR NEW TWO YEAR NOTES PROVIDED AN EXCUSE FOR TRADERS TO KNOCK PRICES LOWER THE TREASURY'S TEN YEAR NOTE ROSE LESS THAN ONE QUARTER POINT TO ONE HUNDRED AND SIX THIRTY SECONDS TO YIELD FIVE POINT SEVEN ONE PERCENT COMPARED WITH FIVE POINT SEVEN THREE PERCENT ON TUESDAY WITH NO MAJOR ECONOMIC NEWS TO GUIDE TRADING DEALERS HAD ONLY THE TREASURY'S AUCTION OF TWELVE BILLION DOLLARS IN FIVE YEAR NOTES TO FOCUS ON THE TREASURY AWARDED THE OFFERING AT A YIELD OF FIVE POINT ONE OH PERCENT WHICH WAS AT THE HIGH END OF EXPECTATIONS THE DETAILS OF THE AUCTIONS MEANWHILE ALSO REVEALED SUB PAR BIDDING INTEREST THE BID TO COVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS TENDERED TO THOSE ACCEPTED WAS TWO POINT THREE EIGHT TO ONE AND NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT INTEREST FROM OUTSIDE THE WALL STREET COMMUNITY WERE FIVE HUNDRED SIXTY SIX MILLION DOLLARS THAT COMPARED WITH AN AVERAGE BID TO COVER RATIO OF TWO POINT SEVEN SIX TO ONE OVER THE PAST TWELVE AUCTIONS AND AVERAGE NONCOMPETITIVE BIDS OF SIX HUNDRED THREE MILLION DOLLARS THE YIELD ON THE WHEN ISSUED FIVE YEAR NOTE FINISHED THE DAY NEAR FIVE POINT OH SEVEN PERCENT COMPARED WITH FIVE POINT OH NINE PERCENT LATE TUESDAY THE TWO YEAR NOTE SOLD ON TUESDAY YIELDED FOUR POINT ONE TWO PERCENT IN WHEN ISSUED TRADING UNCHANGED HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF FIVE YEAR NOTES ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKET CLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED JANUARY THIRTY FIRST AND MATURE JANUARY THIRTY FIRST NINETEEN NINETY NINE INTERNATIONAL DEBT ISSUES CONTINUED TO TAKE CENTER STAGE IN THE CORPORATE BOND MARKET EKSPORTFINANS A SLASH S. PRICED A ONE POINT FIVE BILLION SWEDISH KRONA ONE HUNDRED EIGHTY SEVEN MILLION DOLLARS OFFERING OF GLOBAL BONDS THE NORWEGIAN EXPORT FINANCING AGENCY SOLD THE TEN YEAR GLOBAL BONDS WITH A SIX POINT EIGHT SEVEN FIVE PERCENT COUPON THE BONDS WERE PRICED ZERO POINT TWO FOUR PERCENTAGE POINT ABOVE COMPARABLE SWEDISH GOVERNMENT BONDS TO YIELD SIX POINT NINE SEVEN FIVE PERCENT THE PAPER WAS SOLD THROUGH LEAD UNDERWRITER SALOMON BROTHERS INTERNATIONAL LIMITED AND IS RATED DOUBLE A ONE BY MOODY'S INVESTORS SERVICE AND TRIPLE A BY STANDARD AND POOR'S CORPORATION GLOBAL BONDS ARE SECURITIES ISSUED BY A CORPORATION OR A GOVERNMENT SIMULTANEOUSLY IN THE U. S. EUROPEAN AND ASIAN MARKETS USUALLY IN A SINGLE CURRENCY EKSPORTFINANS PRICED THE LONGEST KRONA DENOMINATED GLOBAL THIS YEAR OTHER OFFERINGS HAVE BEEN EITHER FIVE OR SEVEN YEAR ISSUES U. S. INVESTORS CONTINUE TO FIND EUROPEAN CURRENCY BONDS ATTRACTIVE ESPECIALLY AS THIS YEAR'S NEW ISSUE CALENDAR IS SLIM SYNDICATE OFFICIALS SAID IN TRADING BONDS OF YACIMIENTOS PETROLIFEROS FISCALES S. A. ARGENTINA'S LARGEST OIL COMPANY ROSE AFTER THEIR SALE TUESDAY THE PRICE OF THE EIGHT PERCENT COUPON YPF TEN YEAR YANKEE NOTE WAS UP ONE HALF POINT OR FIVE DOLLARS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO ONE HUNDRED POINT TWO SEVEN THE YIELD DROPPED TO SEVEN POINT NINE THREE PERCENT FROM EIGHT POINT OH THREE THREE PERCENT YANKEE NOTES ARE FIXED INCOME SECURITIES SOLD IN THE U. S. BY FOREIGN COMPANIES ATTENTION NOW TURNS TO THE PROVINCE OF ONTARIO'S FLOATING RATE FIVE YEAR GLOBAL NOTE OFFERING EXPECTED TODAY IT MAY BE AS BIG AS ONE POINT FIVE BILLION DOLLARS MARKET PARTICIPANTS SAID IN ADDITION ONE POINT FIVE EIGHT BILLION DOLLARS OF DEBT WAS PRICED IN THE DOMESTIC MARKET INCLUDING A SEVEN HUNDRED MILLION DOLLAR DEAL FROM THE STUDENT LOAN MARKETING ASSOCIATION OTHER ISSUERS INCLUDED FIRST FIDELITY BANCORP U. S. AIR GROUP INCORPORATED HOECHST A. G.'S HOECHST CELANESE CORPORATION AND RIGGS NATIONAL CORPORATION SECONDARY TRADING WAS EXTREMELY LIGHT WEDNESDAY JUNK BOND PRICES ENDED UNCHANGED INVESTMENT GRADE BOND PRICES FOLLOWED TREASURYS SLIGHTLY HIGHER MUNICIPAL BONDS FINISHED UNCHANGED TO ONE QUARTER POINT HIGHER HELPED BY OPTIMISM ABOUT THE SLOWDOWN IN ISSUANCE THIS WEEK THE YORK COUNTY S. C. FIVE POINT SEVEN OH PERCENT BONDS DUE TWO THOUSAND TWENTY FOUR FINISHED UNCHANGED AT NINETY NINE AND THREE QUARTERS TO ONE HUNDRED YIELDING FIVE POINT SEVEN OH PERCENT AMONG THIS SESSION'S GAINERS WERE THE HARRIS COUNTY TEXAS FIVE POINT THREE OH PERCENT BONDS DUE TWO THOUSAND THIRTEEN WHICH CLOSED ONE QUARTER STRONGER AT NINETY NINE AND THREE EIGHTHS YIELDING FIVE POINT THREE THREE PERCENT MEANWHILE THE MAINE STATE HOUSING AUTHORITY'S ONE HUNDRED TEN MILLION DOLLARS OF MORTGAGE PURCHASE BONDS PRICED BY A GOLDMAN SACHS GROUP WAS GIVEN YIELDS RANGING FROM FOUR POINT THREE FIVE PERCENT IN TWO THOUSAND TO FIVE POINT SEVEN FIVE PERCENT IN TWO THOUSAND THIRTY THREE THE ISSUANCE FALLOFF IS THE KEY THING HELPING THE SECONDARY MARKET SAID A NEW YORK MUNI SPECIALIST NOTING THAT BONDS WITH FIFTEEN YEAR TO TWENTY YEAR MATURITIES ARE CURRENTLY POPULAR THE MUNICIPAL MARKET'S ISSUANCE LULL IS EXPECTED TO CONTINUE FOR A WHILE BUT NEXT WEEK'S PRICING CALENDAR INCLUDES AT LEAST ONE VERY LARGE OFFERING A BEAR STEARNS AND COMPANY INCORPORATED GROUP IS EXPECTED TO PRICE THE NEW YORK TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY'S SIX HUNDRED SIXTY FIVE MILLION DOLLARS OF GENERAL PURPOSE REVENUE BONDS TUESDAY AFTER OUTPACING GOVERNMENT SECURITIES IN THE MORNING MORTGAGE SECURITIES FELL BACK IN LINE WITH TREASURYS TO FINISH ONLY MARGINALLY BETTER MORTGAGE TRADING DESKS SOMETIMES LIKE TO SEE MORTGAGES FALL BEHIND TREASURYS WHENEVER UNDERWRITING GROUPS WANT TO GENERATE REAL ESTATE INVESTMENT CONDUITS AND GET THE BIGGEST BANG FROM THOSE REMICS IT'S MORE PROFITABLE TO CREATE A REMIC WHEN YIELD SPREADS BETWEEN MORTGAGES AND COMPARABLE TREASURYS ARE WIDENING BECAUSE IT'S CHEAPER FOR DEALERS TO BUY MORTGAGE SECURITIES AS COLLATERAL ONLY ONE REMIC DEAL WAS ANNOUNCED A FEDERAL NATIONAL MORTGAGE ASSOCIATION NINETEEN NINETY FOUR TO TWENTY NINE DEAL BACKED BY FANNIE MAE'S SIX AND ONE HALF PERCENT SECURITIES AMONG PRICES OF SIX AND ONE HALF PERCENT MORTGAGE SECURITIES FOR FEBRUARY DELIVERY GINNIE MAES WERE UP FIVE THIRTY SECONDS IN LATE TRADING AT ONE HUNDRED AND THREE THIRTY SECONDS FREDDIE MAC GOLDS AND FANNIE MAES ROSE ONE EIGHTH POINT TO ONE HUNDRED AND FIVE THIRTY SECONDS AND ONE HUNDRED RESPECTIVELY ADJUSTABLE RATE MORTGAGES ALSO FINISHED HIGHER YESTERDAY TRADERS SAY GINNIE MAE ARMS OF ALL COUPONS GAINED ONE EIGHTH TO ONE QUARTER POINT ON THE DAY THESE SECURITIES HAD BEEN RISING FOR MUCH OF THE PAST FEW WEEKS BUT TRAILED OFF THIS WEEK AFTER INVESTORS DECIDED THE ISSUES WERE GETTING TOO RICH JACQUELINE DOHERTY CONTRIBUTED TO THIS COLUMN BOSTON CHICKEN THE HOTTEST INITIAL PUBLIC OFFERING OF NINETEEN NINETY THREE RECEIVED A MUCH COOLER RECEPTION WHEN IT SOLD CONVERTIBLE DEBT YESTERDAY JUST TWO MONTHS AFTER ITS WILDLY SUCCESSFUL I. P. O. SOARED ONE HUNDRED FORTY THREE PERCENT THE FIRST DAY THE ROTISSERIE CHICKEN CHAIN YESTERDAY TAPPED THE PUBLIC MARKETS AGAIN WITH A ONE HUNDRED THIRTY MILLION DOLLAR CONVERTIBLE NOTE OFFERING SOME TRADITIONAL CONVERTIBLE NOTE BUYERS STEERED CLEAR OF THE OFFERING WHICH CARRIED JUNK CREDIT RATINGS OTHERS SOLD THEIR SECURITIES AS SOON AS THEY GOT THEM AND UNDERWRITER MERRILL LYNCH APPARENTLY WOUND UP STUCK WITH SOME OF THE SECURITIES WHICH WERE QUOTED LATE IN THE DAY ON THE NASDAQ SMALLCAP MARKET AT NINETY NINE AND ONE QUARTER THEY HAD BEEN PRICED AT PAR OR ONE HUNDRED SO INITIAL INVESTORS IN EFFECT LOST SEVEN DOLLARS AND FIFTY CENTS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT OF SECURITIES THEY BOUGHT YESTERDAY YESTERDAY'S LUKEWARM OFFERING SUGGESTS THAT A HOT I. P. O.'S RADIANCE WON'T NECESSARILY EXTEND TO EVERY SECURITIES OFFERING BY THE SAME COMPANY BOSTON CHICKEN'S COMMON IS TRADING AT THREE HUNDRED FORTY EIGHT TIMES ITS PAST YEAR'S PER SHARE EARNINGS AND SEVENTY FIVE TIMES THE MOST OPTIMISTIC ESTIMATES FOR THIS YEAR REASONS ONE CONVERTIBLES TRADER QUOTE YOU CAN'T RING THE BELL EVERY TIME QUOTE IT'S AN EXCELLENT COMPANY BUT DIFFICULT TO VALUE AT THIS STAGE OF DEVELOPMENT SAYS DANIEL PINE CO MANAGER OF VANGUARD GROUP'S TWO HUNDRED MILLION DOLLARS CONVERTIBLE FUND MR. PINE SAYS HE DIDN'T BUY ANY OF YESTERDAY'S OFFERING EVEN THOUGH HE IS GENERALLY BULLISH ON THE CONVERTIBLE BONDS OF GROWTH COMPANIES IF I THOUGHT IT WAS GOING TO BE A BLOWOUT I WOULD HAVE BOUGHT SOME BOSTON CHICKEN'S STOCK PRICE OF FORTY FIVE AND ONE QUARTER UP ONE HALF YESTERDAY AND MORE THAN DOUBLE THE I. P. O. OFFERING PRICE OF TWENTY DOLLARS A SHARE IS HARD TO JUSTIFY HE SAYS NOT THAT THE NAPERVILLE ILLINOIS COMPANY IS CRYING AFTER ALL THE COMPARATIVELY YOUNG COMPANY WHICH HAD YEARS OF LOSSES BEFORE TURNING A PROFIT LAST YEAR DID MANAGE TO RAISE ONE HUNDRED THIRTY MILLION DOLLARS BY SELLING SOME OF THE LOWEST RATED CONVERTIBLES TO HIT THE MARKET RECENTLY MOODY'S INVESTORS SERVICE INCORPORATED RATED THE NOTES SINGLE B. THREE AND STANDARD AND POOR'S CORPORATION TAGGED THEM TRIPLE C. PLUS BOTH SQUARELY IN THE JUNK CATEGORY S. AND P. WARNED OF BOSTON CHICKEN'S HIGH RISK RAPID GROWTH STRATEGY WITHIN AN INDUSTRY THAT ALREADY IS CONSIDERED TO HAVE ABOVE AVERAGE RISK CHARACTERISTICS MARK STEPHENS BOSTON CHICKEN'S CHIEF FINANCIAL OFFICER SAYS OF YESTERDAY'S OFFERING WE FEEL GOOD ABOUT IT HE SUGGESTS INVESTORS SHOULDN'T READ TOO MUCH INTO THE DEBT'S PRICE PERFORMANCE JUST AS THE PERFORMANCE OF THE I. P. O. WAS AN ABERRATION GOING THE OPPOSITE DIRECTION QUOTE THE EXPERIENCE OF THE I. P. O. WHERE IT SKYROCKETED THAT PHENOMENON DIDN'T NECESSARILY INDICATE THE HISTORY OF OUR EXPERIENCE IN THE MARKET NOR DOES THE FIRST DAY OF TRADING IN THESE BONDS QUOTE SAYS MR. STEPHENS HE WAS SPEAKING FROM DENVER WHERE BOSTON CHICKEN JUST OPENED TWO MORE OUTLETS BRINGING THE EVER INCREASING TOTAL TO TWO HUNDRED THIRTY EIGHT THE PROCEEDS FROM YESTERDAY'S OFFERING WILL HELP FINANCE WHAT BOSTON CHICKEN CALLS ITS ACCELERATING EXPANSION PLANS WHICH NOW CALL FOR FOUR HUNDRED FIFTY STORES NATIONWIDE BY YEAR'S END MR. STEPHENS CONCEDES THAT NOVEMBER'S I. P. O. WAS A LITTLE BIT CRAZY BUT HE EMPHASIZES THAT MANAGEMENT IS IN FOR THE LONG HAUL SAYING NONE OF THE OFFICERS ARE SELLING THEIR BOSTON CHICKEN STOCK OR ARE GOING TO MR. STEPHENS SAYS ANOTHER SECURITIES OFFERING IS NOT LIKELY IN NINETEEN NINETY FOUR WHAT HURT YESTERDAY'S OFFERING THE COMMON STOCK PRICE HAS RISEN TWENTY PERCENT SINCE THE CONVERTIBLE OFFERING WAS ANNOUNCED JANUARY SEVENTH THAT TURNED OFF INVESTORS ESPECIALLY BECAUSE THE NOTES ARE CONVERTIBLE INTO COMMON AT A RATE OF ONE SHARE FOR EACH FIFTY FIVE POINT NINE THREE EIGHT DOLLARS OF NOTES OR A HIGHER THAN EXPECTED TWENTY FIVE PERCENT ABOVE THE STOCK PRICE IN OTHER WORDS THE STOCK WOULD HAVE TO RISE ABOUT TWENTY FIVE PERCENT FROM THE CURRENT LEVEL BEFORE A NOTE INVESTOR COULD CONVERT HIS HOLDINGS TO STOCK AND BREAK EVEN DOING SO AND THE ANNUAL INTEREST ON THE NOTES WAS SET AT JUST FOUR POINT FIVE PERCENT THROUGH TWO THOUSAND FOUR WHICH ISN'T THAT APPETIZING FOR A JUNK OFFERING ONE MARKET VETERAN SAYS YESTERDAY'S OFFERING ACTUALLY WENT QUITE WELL CONSIDERING THE DEAL'S JUNK RATING AND TERMS MARK HUNT HEAD OF CONVERTIBLES RESEARCH AT SMITH BARNEY SHEARSON SUGGESTS THAT THE BIG THING YESTERDAY'S OFFERING HAD GOING FOR IT WAS BOSTON CHICKEN'S POPULAR NAME ON THE PROSPECTUS IF YOU PUT A BLINDFOLD OVER PEOPLE'S EYES YOU COULDN'T HAVE SOLD IT HE SAYS THOMAS T. VOGEL JUNIOR CONTRIBUTED TO THIS ARTICLE DESPITE A CONTINUING DOWNTURN IN JAPAN'S ECONOMY KAO CORPORATION JAPAN'S LEADING MAKER OF PERSONAL CARE PRODUCTS EXPECTS A RECORD PRETAX PROFIT FOR THE CURRENT FISCAL YEAR THE COMPANY'S CONTINUING COST CUTTING EFFORTS AND RECENT SALES VOLUME GIVES KAO CONFIDENCE IT WILL MEET ITS FORECAST PRETAX PROFITS OF FORTY SIX BILLION YEN FOUR HUNDRED FOURTEEN MILLION DOLLARS ON EXPECTED SALES OF SIX HUNDRED FORTY BILLION YEN FOR THE YEAR ENDING MARCH THIRTY FIRST SAID TOMIAKI NAGASE KAO'S SENIOR MANAGING DIRECTOR THE COMPANY SAID THE PROFIT OUTLOOK IS BOOSTED PRIMARILY BY SUCH QUOTE RATIONALIZATION QUOTE MOVES AS REDUCING INVENTORY AND STREAMLINING SALES AND DISTRIBUTION IN PARTICULAR KAO CITES EFFICIENCIES GAINED FROM A NEW COMPUTER SYSTEM LINKING RETAILERS DIRECTLY WITH SALES AND MARKETING PEOPLE IN KAO'S HEAD OFFICE PRETAX PROFIT IS IN A BETTER POSITION THAN SALES HE SAID BUT ADDED THAT SALES ARE ALSO RUNNING ALMOST AS WE EXPECTED IF THE PROJECTED PRETAX PROFIT IS REALIZED AS ANTICIPATED IT WILL BE THE THIRTEENTH CONSECUTIVE YEAR OF RECORD PROFIT SABENA BELGIAN AIRLINES BELGIUM JOINED DELTA AIR LINES'S FREQUENT FLYER PROGRAM FEBRUARY FIRST SABENA SERVES EIGHTY FIVE CITIES IN THE U. S. EUROPE AFRICA AND ASIA MICHAEL ANTHONY JEWELERS INCORPORATED MOUNT VERNON N. Y. WILL DEVELOP MANUFACTURE AND DISTRIBUTE A FULL LINE OF BARBIE FOR GIRLS AND NOSTALGIC BARBIE PRECIOUS METAL JEWELRY UNDER AN EXCLUSIVE LICENSING AGREEMENT WITH MATTEL INCORPORATED BELLSOUTH CORPORATION WILL MAKE AN INITIAL INVESTMENT OF FORTY MILLION DOLLARS TO BUILD A NETWORK AND OFFER DOMESTIC AND INTERNATIONAL LONG DISTANCE PHONE SERVICE IN CHILE ITS CHILEAN UNIT CIDCOM LARGA DISTANCIA GOT PRELIMINARY APPROVAL FOR A LONG DISTANCE LICENSE FROM CHILE'S GOVERNMENT BUT CERTAIN LEGAL APPROVALS ARE STILL REQUIRED GOODYEAR TIRE AND RUBBER COMPANY WILL CONVERT THIRTEEN STORES IN THE PHILADELPHIA AREA TO A TIRES ONLY FORMAT CALLED JUST TIRES THE JUST TIRES CONVERSION AND REMODELING PROCESS WHICH IS EXPECTED TO TAKE FOUR TO SIX WEEKS WILL BEGIN FEBRUARY FIRST COLTEC INDUSTRIES INCORPORATED'S MENASCO AEROSPACE LIMITED UNIT RECEIVED AN ORDER FROM BOEING COMPANY SEATTLE FOR LANDING GEAR ASSEMBLIES VALUED AT MORE THAN ONE HUNDRED MILLION DOLLARS DELIVERY WILL BEGIN IN LATE NINETEEN NINETY SIX BIO VASCULAR INCORPORATED SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE VITAL IMAGES INCORPORATED A CLOSELY HELD FAIRFIELD IOWA CONCERN THE AGREEMENT CALLS FOR BIO VASCULAR A MAKER OF MEDICAL DEVICES TO EXCHANGE ONE SHARE FOR EACH SHARE OF VITAL IMAGES COMMON AND SERIES A CONVERTIBLE PREFERRED SHARES OUTSTANDING COMPLETION IS SUBJECT TO CERTAIN CONDITIONS INCLUDING THE AVAILABILITY OF POOLING OF INTERESTS ACCOUNTING AND APPROVAL BY VITAL IMAGES HOLDERS VITAL IMAGES HAD SALES OF ONE POINT THREE MILLION DOLLARS FOR THE TEN MONTHS ENDED OCTOBER THIRTY FIRST AND REPORTED A LOSS OF SEVEN HUNDRED SEVENTY SIX THOUSAND DOLLARS OF WHICH SIX HUNDRED SEVENTY EIGHT THOUSAND DOLLARS WAS ATTRIBUTED TO RESEARCH AND DEVELOPMENT EXPENSES CENTEX CORPORATION REPORTED A THIRTY FOUR PERCENT INCREASE IN FISCAL THIRD QUARTER NET INCOME CITING MARKEDLY IMPROVED RESULTS IN ITS HOME BUILDING MORTGAGE BANKING AND CONSTRUCTION PRODUCTS BUSINESSES THE DALLAS BASED CONSTRUCTION AND BANKING CONCERN SAID ITS NET INCOME FOR THE PERIOD ENDED DECEMBER THIRTY FIRST ROSE TO TWENTY THREE POINT SIX MILLION DOLLARS OR SEVENTY TWO CENTS A SHARE FROM SEVENTEEN POINT SIX MILLION DOLLARS OR FIFTY FIVE CENTS A SHARE IN THE YEAR EARLIER PERIOD REVENUE WAS UP TWENTY EIGHT PERCENT TO EIGHT HUNDRED THIRTY THREE POINT THREE MILLION DOLLARS FROM SIX HUNDRED FORTY EIGHT POINT SEVEN MILLION DOLLARS THE RESULTS WERE AT THE HIGH END OF ESTIMATES BY INDUSTRY ANALYSTS WHO HAD PROJECTED NET INCOME OF SIXTY FOUR CENTS TO SEVENTY THREE CENTS A SHARE FOR THE PERIOD AMID AN INCREASE IN HOME PRICES AND LOWER LUMBER PRICES CENTEX SAID THAT OPERATING EARNINGS FROM ITS HOME BUILDING UNIT ROSE TWENTY THREE PERCENT TO TWENTY FIVE POINT EIGHT MILLION DOLLARS FROM TWENTY ONE MILLION DOLLARS IN THE YEAR EARLIER PERIOD ON A TWENTY FIVE PERCENT INCREASE IN REVENUE COMPARED WITH THE YEAR EARLIER PERIOD HOME SALES WERE UP ABOUT FOURTEEN PERCENT THE MORTGAGE BANKING UNIT'S OPERATING EARNINGS SOARED FIFTY EIGHT PERCENT TO TWENTY POINT SEVEN MILLION DOLLARS FROM THIRTEEN POINT ONE MILLION DOLLARS A YEAR EARLIER ON A FIFTY NINE PERCENT BOOST IN REVENUE LOOKING AHEAD CENTEX SAID THAT IT EXPECTS HOME BUILDING MARGINS TO CONTINUE TO IMPROVE DURING ITS FISCAL FOURTH QUARTER THE COMPANY ALSO SAID IT EXPECTS TO OFFSET EXPECTED DECLINES IN THE RATE OF MORTGAGE REFINANCINGS BY INCREASING ITS NUMBER OF MORTGAGE BANKING OFFICES SEVERAL EXECUTIVES WERE NAMED TO NEW POSITIONS RICHARD PERKINS FORMERLY EXECUTIVE VICE PRESIDENT OF THE PIPELINE COMPANY'S TEXAS EASTERN TRANSMISSION COMPANY UNIT WAS NAMED PRESIDENT OF ONE SOURCE CORPORATION PANHANDLE'S GAS TRANSPORTATION AND MANAGEMENT SERVICES UNIT MR. PERKINS FIFTY TWO YEARS OLD SUCCEEDS FRED FOWLER FORTY SEVEN WHO WAS NAMED PRESIDENT OF TEXAS EASTERN TRANSMISSION MR. FOWLER SUCCEEDS GEORGE MAZANEC FIFTY SEVEN WHO WAS NAMED VICE CHAIRMAN OF THE PARENT COMPANY IN DECEMBER STEVE ROVERUD FIFTY FOUR FORMERLY SENIOR VICE PRESIDENT OF PANHANDLE'S PANHANDLE EASTERN PIPE LINE COMPANY WAS NAMED PRESIDENT OF THAT UNIT HE SUCCEEDS PAUL ANDERSON FORTY EIGHT WHO WAS NAMED PRESIDENT OF THE PARENT COMPANY IN DECEMBER HE R. O. GROUP LIMITED NEW YORK WILLIAM J. CARONE WAS NAMED CHAIRMAN OF THIS MAKER OF WOMEN'S CLOTHING SUCCEEDING MATTHEW A. BERDON WHO HAD BEEN ACTING CHAIRMAN SINCE SEPTEMBER MR. CARONE FORTY EIGHT YEARS OLD IS A SENIOR VICE PRESIDENT OF ROSENTHAL AND ROSENTHAL A NEW YORK FINANCE COMPANY HE HAS BEEN A DIRECTOR OF HE RO SINCE JANUARY FIRST MR. BERDON A PARTNER OF THE NEW YORK ACCOUNTING FIRM FERRO BERDON AND COMPANY ASSUMED THE DUTIES OF HE RO CHAIRMAN AFTER THE DEATH OF HERBERT ROUNICK HE RO ALSO SAID DELLA ROUNICK WAS ELECTED A DIRECTOR FILLING A VACANCY ON THE THREE MEMBER BOARD MS. ROUNICK THE CONTROLLING SHAREHOLDER OF THE COMPANY IS A DESIGNER OF HE RO'S EVENING WEAR CRAY RESEARCH INCORPORATED REVERSING A YEAR AGO LOSS REPORTED EARNINGS OF TWENTY FOUR POINT THREE MILLION DOLLARS OR NINETY THREE CENTS A SHARE ON REVENUE OF THREE HUNDRED TWO POINT SIX MILLION DOLLARS FOR THE FOURTH QUARTER IN THE YEAR AGO QUARTER THE EAGAN MINNESOTA SUPERCOMPUTER COMPANY HAD A LOSS OF TWENTY SIX POINT FIVE MILLION DOLLARS OR ONE DOLLAR A SHARE ON REVENUE OF TWO HUNDRED TWENTY SEVEN POINT THREE MILLION DOLLARS RESULTS FOR THE NINETEEN NINETY TWO FOURTH QUARTER INCLUDED A ONE TIME RESTRUCTURING CHARGE OF FORTY TWO POINT EIGHT MILLION DOLLARS BUOYED BY THE RESULTS THE COMPANY ANNOUNCED THAT ABOUT FOUR THOUSAND FIVE HUNDRED ELIGIBLE EMPLOYEES WILL RECEIVE AN EXTRA WEEK'S PAY AS A BONUS COSTING CRAY RESEARCH ABOUT FOUR MILLION DOLLARS THE COMPANY ATTRIBUTED ITS IMPROVED PERFORMANCE TO A COMBINATION OF INCREASED REVENUE HIGHER GROSS MARGINS ON ITS TOP OF THE LINE C. NINE SIXTEEN SUPERCOMPUTERS AND LOWER OPERATING EXPENSES THE COMPANY IS PROJECTING A NINETEEN NINETY FOUR REVENUE INCREASE OF TEN PERCENT FROM NINETEEN NINETY THREE WITH CONTINUED IMPROVEMENT IN EARNINGS CRAY RESEARCH SHARES CLOSED UNCHANGED AT TWENTY SIX DOLLARS AND TWENTY FIVE CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE SCENE A CROWDED FACTORY AUDITORIUM IN CENTRAL MOSCOW UNDERNEATH A TWENTY FOOT PORTRAIT OF LENIN GENERAL YURI KALININ SHOUTS TO THE ASSEMBLED FAITHFUL QUOTE THE SOVIET PEOPLE WILL BE VICTORIOUS QUOTE RED BANNERS ARE HOISTED HIGH AS THE CROWD BURSTS INTO SPIRITED APPLAUSE STALIN'S ERA BREZHNEV'S IN FACT THE EVENTS TOOK PLACE IN BORIS YELTSIN'S RUSSIA LAST WEEK THE PAST IS CREEPING UP ON RUSSIA'S FUTURE A RESURGENT COMMUNIST PARTY HAS NEARLY GAINED CONTROL OVER THE NEW PARLIAMENT FOREIGN POLICY IS INCHING BACK TOWARD AN EXPANSIONIST SOVIET MODEL AND CONTROL OF RUSSIA'S PARTLY REFORMED ECONOMY HAS RETURNED TO THE STATIST MILITARY INDUSTRIAL COMPLEX THE NEW MIX RECALLS THE GORBACHEV ERA WHERE A CAUTIOUS LEADERSHIP TOGGLED BETWEEN THE FAMILIAR AND REFORM WHILE THE ECONOMY NOSE DIVED IF YOU LIKED PERESTROIKA YOU'LL LOVE THIS SAYS JEFFREY SACHS A HARVARD UNIVERSITY ECONOMIST WHO RESIGNED IN DISGUST LAST WEEK AS AN ECONOMIC ADVISER TO THE RUSSIAN GOVERNMENT RUSSIA'S STEP BACKWARD ISN'T ALTOGETHER SURPRISING FOR TWO YEARS A TEAM OF REFORMERS GUIDED BY MR. YELTSIN TRIED TO MOVE THE COUNTRY TOWARD A RADICAL VISION OF THE FUTURE RUSSIA WAS TO BE A DEMOCRACY WITH A FLOURISHING FREE MARKET ECONOMY IN SHORT IT WAS TO BE LIKE THE WEST BUT IN TWO YEARS THE REFORMERS COULDN'T DELIVER THE GOODS INFLATION SOARED PRODUCTION PLUMMETED A THIRD OF THE POPULATION SLIPPED BELOW THE OFFICIAL POVERTY LINE WHEN RUSSIANS HAD A CHANCE TO VOTE LAST MONTH THE VERDICT ON RADICAL REFORMS WAS A DISTINCT NYET PRESIDENT YELTSIN WOUNDED POLITICALLY HAS THROWN IN HIS LOT WITH THE GOVERNMENT'S GO SLOW TECHNOCRATS WHO NOW HEAP SCORN ON THE WESTERN MARKET MODEL THEY TRIED TO PUT AN AMERICAN SUIT ON RUSSIA SAYS GENNADY ZYUGANOV HEAD OF THE COMMUNIST PARTY BUT IT DIDN'T FIT BORIS FYODOROV WHO QUIT AS FINANCE MINISTER LAST WEEK TO PROTEST THE GOVERNMENT'S NEW CONSERVATISM WARNED MR. YELTSIN YESTERDAY THAT AN ECONOMIC COUP IS TAKING PLACE IN THE COUNTRY MR. FYODOROV CHARACTERIZED THE NEW GOVERNMENT AS DOMINATED BY RED INDUSTRIALISTS THE REFORMERS' DASHED DREAMS ARE A REMINDER THAT DESPITE AN OVERWHELMING DESIRE FOR REFORM WHEN THE SOVIET UNION COLLAPSED IN NINETEEN NINETY ONE CHANGE DOESN'T JUST COME OVERNIGHT WHILE THE SOVIET SYSTEM CAN'T BE RECREATED FEW WOULD EVEN WANT THAT COMMUNISM'S ROOTS STILL RUN DEEP AS DO RUSSIAN SUSPICIONS TOWARD THE WEST AND FOREIGN IDEAS QUOTE THE YELTSIN ERA IS PRETTY MUCH OVER QUOTE GLOATS VIKTOR LINNIK WHO EDITS THE PROCOMMUNIST DAILY PRAVDA THE COMMUNISTS ARE COMING BACK BUT JUST AS SURELY AS THE OLD GUARD IS IN THE ASCENDANCY ONE CAN'T RULE OUT ANOTHER DRAMATIC REVERSAL POLITICS IN RUSSIA TENDS TO BE CYCLICAL IF PRIME MINISTER VIKTOR CHERNOMYRDIN FAILS TO TAME THE INFLATIONARY MONSTER WITH HIS GORBACHEV ERA POLICIES REFORMERS IN EXILE LIKE MR. FYODOROV AND YEGOR GAIDAR MIGHT WIN ANOTHER CHANCE TO COMPLETE THEIR HALF FINISHED MARKET REVOLUTION FOR NOW HOWEVER IT IS THE OLD MEN'S TURN WITH THEIR EYES ON THE ROAD AND A SOMEWHAT CLOUDED REAR VIEW MIRROR THEY ARE TAKING RUSSIA BACK TO THE FUTURE THERE IS A SENSE OF DEJA VU SPEAKING WITH LEONID ABALKIN A PROMINENT ECONOMIST WHO ONCE ADVISED THE GORBACHEV GOVERNMENT WHEN THE RADICAL REFORMERS TOOK OVER IN EARLY NINETEEN NINETY TWO MR. ABALKIN WAS UNCEREMONIOUSLY DUMPED FROM THE FRONT LINE TODAY HE IS BACK TEAMING UP WITH OTHERS FROM THE PERESTROIKA PERIOD NAMES LIKE NIKOLAI PETRAKOV AND STANISLAV SHATALIN MR. ABALKIN HAS DRAWN UP A ONE HUNDRED TWENTY PAGE ECONOMIC REPORT THAT WILL SOON BE PLACED ON THE DESKS OF MESSRS YELTSIN AND CHERNOMYRDIN ITS RECOMMENDATIONS FOR A NEW COURSE CALLING FOR STATE DIRECTED ECONOMIC POLICY INCREASED SOCIAL SPENDING AND NON MONETARIST MEANS TO ATTACK INFLATION ARE ALREADY KNOWN MR. CHERNOMYRDIN ALREADY IS FOLLOWING HIS ADVICE CHERNOMYRDIN FINALLY GETS IT SAYS MR. ABALKIN CLEARLY PLEASED WITH HIS REEMERGENCE AS A SOUGHT AFTER ADVISER EVEN MORE SURPRISING IS THE RETURN OF THE COMMUNISTS TO THE CORRIDORS OF POWER AFTER THE FAILED COUP OF NINETEEN NINETY ONE THE PARTY DIDN'T JUST LOSE ITS MONOPOLY ON POWER IT WAS HUMILIATED BRANDED AS CRIMINAL AND TEMPORARILY BANNED IN A NINETEEN NINETY TWO SPEECH ON CAPITOL HILL MR. YELTSIN CROWED COMMUNISM HAS COLLAPSED NEVER TO RISE AGAIN BUT IN LAST MONTH'S ELECTION THE COMMUNISTS WON THE BIGGEST SHARE OF THE ANTI YELTSIN PROTEST VOTE MUCH HAS BEEN MADE OF THE SUCCESS OF VLADIMIR ZHIRINOVSKY THE ULTRA NATIONALIST WHOSE RANTINGS MAKE FOR EXCELLENT TELEVISION BUT IT WAS THE COMMUNISTS WHO DID BEST IN THE DECEMBER TWELFTH VOTE THE COMMUNIST PARTY AND ITS RURAL TWIN THE AGRARIAN PARTY TOOK SEVENTY NINE SEATS IN THE FOUR HUNDRED FORTY FOUR MEMBER STATE DUMA RUSSIA'S POWERFUL LOWER HOUSE OF PARLIAMENT MOREOVER A LARGE SHARE OF THE DUMA'S ONE HUNDRED THIRTY FIVE INDEPENDENTS ARE THE COMMUNISTS' NATURAL ALLIES BY CONTRAST RUSSIA'S CHOICE THE MAIN PRO REFORM PARTY WON JUST SIXTY FIVE SEATS THE SAME TOTAL WON BY MR. ZHIRINOVSKY'S LIBERAL DEMOCRATIC PARTY THE COMMUNISTS' ORGANIZATIONAL SKILLS ALREADY ARE EVIDENT A COMMUNIST FORMER ENGINEER IVAN RYBKIN WAS ELECTED SPEAKER OF THE DUMA THE COMMUNIST AGRARIAN ALLIANCE PUT TWENTY PEOPLE ONTO THE DUMA'S KEY COMMITTEES MORE THAN ANY OTHER FACTION AND THE COMMUNISTS HAVE SHOWN AIR TIGHT PARTY DISCIPLINE IN THEIR PARLIAMENTARY VOTING REFLECTING THE REFORMERS' FRUSTRATION PARLIAMENTARIAN ANDREI MAKAROV A PRO YELTSIN LAWYER PUBLICLY SLAMMED MR. GAIDAR FOR WEAK LEADERSHIP OF RUSSIA'S CHOICE AND CALLED FOR HIM TO STEP DOWN BUT THE COMMUNIST PARTY HAS ONE POTENTIALLY LETHAL WEAKNESS ITS SIX HUNDRED THOUSAND MEMBERS ARE DRAWN MAINLY FROM RUSSIA'S GRAYING MASSES THE DISAFFECTED PENSIONERS WHO WAX NOSTALGIC FOR A BYGONE ERA THAT NO ONE SEEMED TO LIKE AT THE TIME BUT MANY NOW RECALL AS THE GLORY DAYS MARTUNI SRABOV A SENIOR COMMUNIST LEADER IN MOSCOW SITS AT THE KITCHEN TABLE REMINISCING ABOUT THE BEST PERIOD OF HIS LIFE IT WAS THE LATE NINETEEN FIFTIES AND EARLY NINETEEN SIXTIES AN ERA GENERALLY DISMISSED AS THE PERIOD OF STAGNATION PEOPLE WERE SURE OF THEMSELVES SAYS MR. SRABOV SMILING SERENELY AT HIS MEMORIES QUOTE WE WERE MAKING GREAT SCIENTIFIC PROGRESS THE WORLD LOVED US RESPECTED US AND FEARED US THE COMMUNISTS REALIZE THAT THEIR COMEBACK MIGHT AMOUNT TO A LAST HURRAH THE CHALLENGE IS TO APPEAR RELEVANT IN THE NINETEEN NINETIES AND BEYOND SO THEY HAVE BEEN FIDDLING WITH THE PARTY LINE THE PARTY THAT ONCE SUMMED UP ITS ESSENCE WITH THE SINGLE PHRASE ABOLITION OF PRIVATE PROPERTY NOW FULLY EMBRACES PROPERTY OWNERSHIP GONE MOREOVER IS THE RIGOROUS ADHERENCE TO DOCTRINE AND SLOGANS THE PARTY HAS EVOLVED INTO A KIND OF COMMUNISM LITE LOOK WE HAVE TO ACCEPT REALITY SAYS VALENTIN KUPTSOV THE PARTY'S NUMBER TWO LEADER OTHERWISE WE'RE NOT GOING TO HAVE ANY SUCCESS AT ALL MR. ZYUGANOV CHAIRMAN OF THE PARTY'S CENTRAL COMMITTEE IS A FORMER PHILOSOPHY STUDENT AND LONG TIME PARTY FUNCTIONARY THOUGH WORKING IN TEMPORARY QUARTERS THAT LACK FURNITURE AND ADEQUATE TELEPHONES HE OCCUPIES A POST FORMERLY HELD BY THE LIKES OF LENIN STALIN AND GORBACHEV STILL HE SEEMS MORE AN APOLOGETIC FIGURE THAN A STANDARD BEARER THE COMMUNIST PARTY OF THE SOVIET UNION MADE A MAJOR MISTAKE IN DEMANDING A MONOPOLY OF POWER SAYS MR. ZYUGANOV A BALDING FORTY NINE YEAR OLD MAN WITH SOFT BLUE EYES AND A POLITE QUIET DEMEANOR QUOTE WE ARE AGAINST ALL EXTREMES WE ARE SEARCHING FOR A BALANCE THE IDEOLOGICAL INHERITANCE ALSO IS HAZY THE NEW PARTY SEEMS CONTENT TO PICK AND CHOOSE FROM THE FORMERLY SACRED TEXTS DISCARDING WHAT DOESN'T SUIT IT MARX ENGELS THEY WERE ALL GOOD PEOPLE SAYS MR. ZYUGANOV BUT THEIR THEORIES CAME FROM ANOTHER ERA THAT DOESN'T FIT WITH THE PRESENT WHAT WRITINGS DOES MR. ZYUGANOV VALUE CLEVER BOOKS WITHOUT IDEOLOGY HE SAYS THE BIBLE'S GOOD AND THE KORAN QUOTE SPEAKING AT THE PARTY'S CHAOTIC HEADQUARTERS WHERE AIDES AND VISITORS TROOP IN AND OUT MR. KUPTSOV TRIES TO CLARIFY THE PARTY'S VIEWS THE MAIN PRINCIPLES OF MARXISM LENINISM REMAIN IN OUR PROGRAM HE DECLARES LIKE WHAT WELL JUSTICE HE SAYS AFTER A LONG PAUSE AND WE'RE AGAINST EXPLOITATION THE MOST IMPORTANT POLITICAL BATTLE IS BEING FOUGHT OVER THE HEARTS AND MINDS OF RUSSIA'S YOUNG GENERATION THE COMMUNISTS KNOW THEY FACE AN UPHILL STRUGGLE INDEED IT TAKES MR. SRABOV THE MOSCOW PARTY OFFICIAL SEVERAL DAYS TO LOCATE A SINGLE YOUTHFUL PARTY RECRUIT IN THE WHOLE MOSCOW REGION THE RECRUIT ALEXANDER VASILIEV TURNS OUT TO BE A SCRAGGLY YOUNG FACTORY WORKER HE BECAME INTERESTED IN THE PARTY IN SEPTEMBER AFTER MR. YELTSIN SUDDENLY ABOLISHED RUSSIA'S CONSERVATIVE PARLIAMENT AS THE TENSE STANDOFF DEVELOPED MR. VASILIEV TOOK TO THE STREETS BRANDISHING A STEEL ROD TO ASSIST IN DEFENDING THE PARLIAMENT WHEN THINGS TURNED VIOLENT AND ARMED CROWDS TRIED TO TAKE OVER THE STATE TELEVISION TOWER MR. VASILIEV WAS AMONG THEM NOW HE IS ANGRY AND POLITICIZED HE IS FED UP WITH RUSSIA'S ECONOMIC PROBLEMS AND HE WANTS TO BECOME A COMMUNIST I WORKED AT THE FACTORY ACROSS THE STREET HE SAYS QUOTE IT STOPPED WORKING THIS WHOLE REGION HAS STOPPED I DON'T KNOW HOW PEOPLE SURVIVE LEADING THE YOUNG MAN'S INDOCTRINATION IS VIKTOR KUZNETSOV LEADER OF THE LOCAL PARTY CELL IN THE INDUSTRIAL MOSCOW SUBURB OF MYTYSHI MR. KUZNETSOV'S BADGE OF HONOR HE SPENT FOUR DAYS IN JAIL AFTER THE VIOLENT CLASHES OF OCTOBER DURING A CELL MEETING THE YOUNG RECRUIT MOSTLY READS THE NEWSPAPER HE KEEPS HIS FUR HAT ON EVEN AS THE OTHERS MOSTLY RETIREES IN THEIR SIXTIES PLACE THEIRS ON THEIR LAPS STILL HE IS THIS CELL'S HOPE FOR THE FUTURE THE COMMUNIST PARTY WILL RETURN TO POWER SAYS MR. KUZNETSOV AND WE NEED A YOUNG CADRE BY CONTRAST MOST YOUNG PEOPLE INCLUDING MR. VASILIEV CONCEDES HIS OWN FRIENDS SEEM MORE EAGER TO TRY TO TAKE ADVANTAGE OF WHAT THE NEW WORLD OFFERS THESE ARE PEOPLE WHO TEND TO SUPPORT THE REFORM POLICIES BUT WHO POLL TAKERS SAY MOSTLY STAYED HOME DURING THE ELECTION AS THE YELTSIN GAIDAR PARTY RUSSIA'S CHOICE WAS GETTING ROUTED AT THE POLLS ON DECEMBER TWELFTH TATIANA GURINA MANNED HER DOWNTOWN MOSCOW KIOSK WITHOUT A SHRED OF CONCERN TOWARD POLITICS ALTHOUGH HER BUSINESS SELLING MOSTLY IMPORTED LIQUORS AND FOODS OWES EVERYTHING TO MR. GAIDAR'S REFORMS SHE DOESN'T FEEL THE NEED TO VOTE I DON'T CARE ABOUT ALL THOSE POLITICIANS SHE SAYS THE RESULT POLITICS HAS BEEN LEFT MAINLY IN THE HANDS OF THE DISAFFECTED IF THE YELTSIN ERA IS WINDING UP THE CHERNOMYRDIN ERA HAS JUST BEGUN MR. CHERNOMYRDIN FIFTY FIVE A FORMER MEMBER OF THE COMMUNIST PARTY CENTRAL COMMITTEE GENERALLY GETS HIGH MARKS FOR HIS PAST WORK RUNNING RUSSIA'S GAS MONOPOLY GASPROM THE U. S. GOVERNMENT WHICH HAD WORKED CLOSELY WITH THE PRIME MINISTER BEFORE HE ANNOUNCED HIS NEW CONSERVATIVE CABINET AND DECLARED AN END TO QUOTE MARKET ROMANTICISM QUOTE LAST WEEK HAS PORTRAYED HIM AS A REFORMER ADVISERS TO THE RUSSIAN GOVERNMENT SEE IT DIFFERENTLY BELIEVE ME HE'S A CONSERVATIVE SAYS MR. SACHS OF HARVARD ALL SUMMER LONG CHERNOMYRDIN BLOCKED ATTEMPTS TO PUSH FASTER REFORMS MR. CHERNOMYRDIN EPITOMIZES THE GOSLOW INDUSTRIALISTS WHO NOW CONTROL THE LEVERS OF ECONOMIC POWER HE WANTS REFORM RUSSIANS ALL SAY THEY FAVOR REFORM BUT HE ALSO WANTS STABILITY AND BELIEVES THAT ONLY THE GUIDING HAND OF THE STATE CAN PROTECT THAT BALANCE HE FAVORS CONTINUING SUBSIDIES TO WEAK INDUSTRIES AND TO THE AGRICULTURAL SECTOR AND HE IS DISCUSSING STEPPED UP STATE INTERVENTION INCLUDING WAGE AND PRICE CONTROLS AS POWER AND THE POPULAR MOOD SHIFT TO A MORE CONSERVATIVE TACK MR. YELTSIN SEEMS TO BE GOING ALONG AT LEAST FOR NOW AIDES SAY HE WAS PROFOUNDLY DISAPPOINTED WITH MR. GAIDAR'S FAILURE TO PRODUCE PROMISED ECONOMIC GAINS IN TWO YEARS YELTSIN HAS FINELY TUNED POLITICAL INSTINCTS SAYS MR. ABALKIN THE ECONOMIST HE IS STARTING TO FEEL THAT HE WAS DECEIVED BY THE REFORMERS FOREIGN MINISTER ANDREI KOZYREV ALSO IS ADJUSTING TO THE POLITICAL WINDS LONG CRITICIZED FOR BEING OVERLY PRO WEST MR. KOZYREV STUNNED THE DIPLOMATIC COMMUNITY LAST WEEK WHEN HE CALLED FOR RUSSIA TO MAINTAIN A MILITARY PRESENCE IN THE FORMER SOVIET REPUBLICS INCLUDING THE BALTICS MOSCOW CONSIDERS ITS NEAR ABROAD TO BE PART OF A RUSSIAN SPHERE OF INFLUENCE IN THE END PRIME MINISTER CHERNOMYRDIN AND HIS GO SLOW TEAM MAY HAVE NO MORE SUCCESS THAN THEIR PREDECESSORS RUSSIA IS CAUGHT BETWEEN THE TWIN CRISES OF PLUMMETING INDUSTRIAL OUTPUT AND THE THREAT OF HYPERINFLATION THAT SQUEEZE LIMITS MR. CHERNOMYRDIN'S POLICY OPTIONS AND PERHAPS DOOMS HIS POLITICAL CAREER WAITING IN THE WINGS TO FORM THE NEXT GOVERNMENT THE REFORMERS THE ULTRANATIONALISTS AND THE NEW COMMUNIST PARTY FEDERAL AND STATE REGULATORS ARE EXAMINING MERRILL LYNCH AND COMPANY'S SALES PRACTICES INVOLVING LIMITED PARTNERSHIPS IN THE NINETEEN EIGHTIES PEOPLE FAMILIAR WITH THE MATTER SAY THE INQUIRIES BY THE SECURITIES AND EXCHANGE COMMISSION AND THE STATES OF FLORIDA VIRGINIA AND NEW MEXICO ARE IN THE VERY PRELIMINARY STAGES THE PEOPLE SAID REGULATORS HAVE BEGUN TO GATHER MERRILL DOCUMENTS INCLUDING SALES MATERIALS AND SCRIPTS USED BY BROKERS TO SELL THE PARTNERSHIPS THE PEOPLE SAID THE CONCERN IS THAT THE HIGH RISK PARTNERSHIPS MAY HAVE BEEN SOLD AS QUOTE SURE THING QUOTE INVESTMENTS TO CLIENTS SEEKING SAFETY AND RETIREMENT INCOME NOBODY IS SUGGESTING THAT THERE WAS THE KIND OF WIDESPREAD FRAUD AT MERRILL OR ANY OTHER BIG BROKERAGE FIRM THAT HAS DOGGED PRUDENTIAL SECURITIES INCORPORATED A UNIT OF PRUDENTIAL INSURANCE COMPANY OF AMERICA THIS IS VERY PRELIMINARY SAID A PERSON FAMILIAR WITH ONE OF THE INVESTIGATIONS WE DON'T KNOW IF THIS WILL AMOUNT TO A BIG THING OR NOT IN A STATEMENT MERRILL SAID WE HAVE RECEIVED ABSOLUTELY NO COMMUNICATION FROM THE S. E. C. AS TO ANY INQUIRY LET ALONE ANY INVESTIGATION THAT WOULD INVOLVE MERRILL LYNCH AS THE FOCUS OF ANY LIMITED PARTNERSHIP SALES PRACTICES THESE LATEST EXAMINATIONS COME AS THE S. E. C. HAS LAUNCHED A BROAD SURVEY OF MAJOR BROKERAGE FIRMS TO GAUGE THEIR PARTNERSHIP SALES AND INVESTOR COMPLAINT LEVELS WALL STREET EXECUTIVES SAID NOT UNEXPECTEDLY THE S. E. C. HAS INITIATED A STREETWIDE SURVEY RELATED TO THE SALES OF LIMITED PARTNERSHIPS IN THE NINETEEN EIGHTIES MERRILL SAID IN A STATEMENT NO SINGLE FIRM IS THE FOCUS OF THIS SURVEY IT IS OUR UNDERSTANDING THAT ALL OF THE FIRMS ARE RESPONDING TO THE S. E. C. REQUESTS FOR INFORMATION QUOTE PART OF THE MERRILL INQUIRY RELATES TO THE BROADER SURVEY AND PART ALSO RELATES TO SPECIFIC COMPLAINTS MADE ABOUT MERRILL TO A BRANCH OFFICE OF THE S. E. C. THE PEOPLE SAID THE INCREASED REGULATORY SCRUTINY COMES IN THE WAKE OF THE HIGHLY PUBLICIZED PARTNERSHIP WOES AT PRUDENTIAL THE BIG BROKERAGE FIRM RECENTLY SETTLED ALLEGATIONS BROUGHT BY THE S. E. C. AND FIFTY STATES OF WIDESPREAD FRAUD IN SELLING THE PARTNERSHIPS AS PART OF THE SETTLEMENT THE FIRM HAS SET UP A REPARATIONS FUND OF AT LEAST THREE HUNDRED THIRTY MILLION DOLLARS FOR INVESTORS OTHER MAJOR WALL STREET BROKERAGE FIRMS COULD ULTIMATELY FACE FALLOUT FROM PARTNERSHIP SCRUTINY SOME ANALYSTS SAY THE POTENTIAL LIABILITY FROM THESE PARTNERSHIPS AT THE VERY MINIMUM COULD PUT DOWNWARD PRESSURE ON BROKERAGE COMPANY EARNINGS AND COULD POSSIBLY HAVE A MUCH GREATER IMPACT ON THEIR BOTTOM LINES NANCY ZAMBELL AN ANALYST AT JW CHARLES SECURITIES INCORPORATED IN BOCA RATON FLORIDA SAID IN A RECENT RESEARCH REPORT THOUGH MOST WALL STREET FIRMS HAVE STOPPED PEDDLING PARTNERSHIPS PARTNERSHIP HEADACHES ARE STILL OUT THERE SAYS MS. ZAMBELL THE NATION'S BROKERAGE FIRMS HAVE SOLD A TOTAL OF NINETY BILLION DOLLARS OF PUBLIC PARTNERSHIPS SINCE NINETEEN EIGHTY SAYS KEITH ALLAIRE A MANAGING DIRECTOR AT THE STANGER REPORT A SHREWSBURY N. J. NEWSLETTER MANY PARTNERSHIPS WHICH WERE HURT BY TAX LAW CHANGES AND THE REAL ESTATE SLUMP HAVE TRIGGERED LAWSUITS BY INVESTORS MERRILL THE NATION'S LARGEST BROKERAGE FIRM WAS AMONG THE MAJOR SELLERS OF PARTNERSHIPS AT THE PINNACLE OF THE PARTNERSHIP FRENZY IN NINETEEN EIGHTY EIGHT FOR INSTANCE MERRILL HAD ONE POINT SEVEN FIVE BILLION DOLLARS OF PUBLIC PARTNERSHIP ASSETS UNDER MANAGEMENT PLUS PARTNERSHIP DEALS IT MARKETED FOR OTHER SPONSORS ACCORDING TO STANGER MERRILL SAYS IT STOPPED MARKETING LEVERAGED PARTNERSHIP DEALS AS EARLY AS NINETEEN EIGHTY THREE AND DOESN'T HAVE SIGNIFICANT PARTNERSHIP LIABILITY THE S. E. C. AS IS ITS PRACTICE DECLINED TO COMMENT THE OFFICE OF FLORIDA COMPTROLLER GERALD LEWIS HAS RECEIVED CERTAIN INFORMATION REGARDING SOME OF THE PARTNERSHIP PROGRAMS AT MERRILL AND WE HAVE THE MATTER UNDER REVIEW SAID DONALD SAXON DIRECTOR OF THE FLORIDA DIVISION OF SECURITIES NANCY SMITH NEW MEXICO'S SECURITIES DIRECTOR AND LEWIS BROTHERS VIRGINIA SECURITIES DIRECTOR SAID THEY COULDN'T CONFIRM OR DENY WHETHER AN INVESTIGATION WAS UNDER WAY IN A STATEMENT MERRILL SAID WE ROUTINELY RECEIVE INQUIRIES FROM STATES REGARDING CUSTOMER COMPLAINTS WE ROUTINELY RESPOND TO THEM NOTHING IS GOING ON AT THE STATE REGULATORY FRONT THAT IS ANY WAY OUT OF THE ORDINARY BUT REGULATORS ARE SAID TO BE EXAMINING MERRILL SALES SCRIPTS FOR SEVERAL PARTNERSHIPS FOR INSTANCE INTERNAL MERRILL SALES SHEETS FOR THE J. M. B. SLASH HAWAII PARTNERSHIP URGE BROKERS TO EMPHASIZE THE BEAUTY OF HAWAII QUOTE ASK THE CLIENT IF THEY HAVE EVER VISITED HAWAII QUOTE THE SALES SCRIPT SAYS ANOTHER SALES SHEET FOR THE REGISTRY HOTEL AT PELICAN BAY A PARTNERSHIP THAT MERRILL UNDERWROTE THAT HAS SOURED SAID THIS IS NOT A HIGH RISK INVESTMENT ALTHOUGH IT HAS HIGH RETURNS MERRILL DECLINED TO COMMENT ON THE SCRIPTS BUT THE FIRM SAYS IT WON A CLASSACTION SUIT IN AUGUST NINETEEN NINETY TWO THAT HAD BEEN FILED IN A MICHIGAN FEDERAL COURT OVER SALES OF THE REGISTRY HOTEL PARTNERSHIP THAT CASE IS NOW BEING APPEALED MERRILL SAYS MEANWHILE REGULATORS ALSO ARE EXAMINING WHETHER MERRILL AND OTHER BROKERAGE FIRMS PRESENTED INVESTORS WITH FULL AND PROPER DISCLOSURE BEFORE SELLING THEM THE PARTNERSHIPS AS STIPULATED BY APPENDIX F. OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS RULES OF FAIR PRACTICE BROKERS OFTEN USED SALES SCRIPTS IN SELLING PARTNERSHIPS AND MAILED PROSPECTUSES TO INVESTORS WITH THEIR SALES CONFIRMATION STATEMENTS MANY WALL STREET FIRMS WHEN SELLING PARTNERSHIPS FLAT OUT DIDN'T FOLLOW THE RULES SAYS THOMAS R. GRADY A NAPLES FLORIDA LAWYER REPRESENTING CLIENTS WITH CASES AGAINST MERRILL AND OTHER BROKERS FOR THEIR PART REGULATORS SAY THE PRUDENTIAL PARTNERSHIP PROBLEMS HAVE TRIGGERED A HEIGHTENED SCRUTINY OF WALL STREET WE'RE ALL WELL AWARE THAT LIMITED PARTNERSHIPS WERE A BIG SELLING ITEM IN THE EIGHTIES AND CERTAINLY ARE CONCERNED ABOUT WHETHER OR NOT SOME OF THE SALES PRACTICE ABUSES OCCURRED AT SOME OTHER FIRMS BESIDES PRUDENTIAL SAYS MS. SMITH NEW MEXICO'S SECURITIES DIRECTOR FORD PLANS TO UNVEIL A USEDVEHICLE LEASING PROGRAM WHICH COULD LEAD TO A SHIFT IN CAR BUYING HABITS THE POPULARITY OF LEASING HAS RISEN IN RECENT YEARS AS NEW CAR PRICES INCREASED AND LEASES ACCOUNTED FOR TWENTY PERCENT OF LIGHT VEHICLE SALES IN NINETEEN NINETY THREE THE PROGRAM COULD HELP FORD HANDLE MORE THAN TWO HUNDRED FIFTY THOUSAND LEASED VEHICLES SCHEDULED TO BE RETURNED TO DEALERS THIS YEAR SCOTT PAPER TOOK A THREE HUNDRED EIGHTY ONE MILLION DOLLAR FOURTH QUARTER CHARGE FOR A RESTRUCTURING THAT INCLUDES EIGHT THOUSAND THREE HUNDRED JOB CUTS OR TWENTY FIVE PERCENT OF THE STAFF AND SOME PLANT CLOSURES ADVANCED MICRO SAID IT WILL SUPPLY MICROCHIPS TO COMPAQ GAINING A FOOTHOLD TO CHALLENGE CHIP LEADER INTEL SEPARATELY COMPAQ REPORTED A SEVENTY PERCENT JUMP IN FOURTH QUARTER EARNINGS MERRILL LYNCH'S SALES PRACTICES INVOLVING LIMITED PARTNERSHIPS IN THE NINETEEN EIGHTIES ARE BEING EXAMINED BY THE S. E. C. AND REGULATORS FROM SEVERAL STATES PEOPLE FAMILIAR WITH THE MATTER SAY DUPONT UNION CARBIDE AND OLIN HAD MIXED RESULTS IN THE FOURTH QUARTER BUT OPERATING EARNINGS AT ALL THREE SHOWED MARKED IMPROVEMENT FROM THE GENERALLY WEAK YEAR EARLIER PERIOD THREE MAJOR UNIONS AT U. S. AIR ARE FIGHTING TO REPRESENT THIRTEEN THOUSAND FIVE HUNDRED WORKERS IN ONE OF THE BIGGEST CONTESTS IN YEARS PEPSICO PLANS TO INVEST THREE HUNDRED FIFTY MILLION DOLLARS IN CHINA OVER FIVE YEARS MATCHING EQUALLY BULLISH EFFORTS BY RIVAL COCACOLA IN THE LARGELY UNTAPPED MARKET ARMCO PLANS TO VIRTUALLY ELIMINATE ITS ROLE IN A CARBON STEEL JOINT VENTURE WITH KAWASAKI STEEL BY ALLOWING THE VENTURE TO SELL SHARES TO THE PUBLIC THE VALUE OF CONSTRUCTION CONTRACTS FELL FOUR PERCENT IN DECEMBER FOR THE SECOND MONTH IN A ROW TOTAL CONSTRUCTION IN NINETEEN NINETY THREE INCREASED FIVE PERCENT TO TWO HUNDRED SIXTY FOUR BILLION DOLLARS BETHLEHEM STEEL'S LOSS WIDENED IN THE FOURTH QUARTER AFTER A RESTRUCTURING CHARGE THE COMPANY'S SALES ROSE FOURTEEN PERCENT ON HIGHER DEMAND AND PRICES BORDEN POSTED A BIG FOURTH QUARTER LOSS COMPARED WITH A YEAR AGO PROFIT REFLECTING A RESTRUCTURING CHARGE AND LOSSES IN SEVERAL FOOD BUSINESSES TOKYO STOCKS ROSE TWO POINT SIX PERCENT WEDNESDAY PROPELLED BY FOREIGN BUYING DESPITE JAPAN'S POLITICAL STALEMATE PHILIP MORRIS'S PROFIT FELL SEVENTY TWO PERCENT FOR THE FOURTH QUARTER HURT IN PART BY A CUT IN ITS PREMIUM CIGARETTE PRICES U. S. SHOE PLANS TO ELIMINATE SEVEN HUNDRED JOBS OR ONE POINT EIGHT PERCENT OF ITS WORK FORCE AND TAKE A RELATED FOURTH QUARTER CHARGE CHEVRON IS EXPECTED TO CONSOLIDATE ITS U. S. OPERATIONS FURTHER AIMING TO SAVE AN EXTRA TWO HUNDRED FIFTY MILLION DOLLARS THIS YEAR AIR CANADA IS DROPPING LITIGATION THAT HAS BLOCKED CANADIAN AIRLINES' PARENT FROM AN ALLIANCE WITH A. M. R. BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED NINETY SIX POINT FIVE FIVE UP SIXTEEN POINT ONE NINE COMMODITIES OIL FIFTEEN DOLLARS AND FORTY SEVEN CENTS A BARREL UP THIRTY CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY ONE POINT NINE NINE OFF ZERO POINT SIX SIX SPOT INDEX ONE HUNDRED TWENTY NINE POINT FIVE ONE OFF ZERO POINT ZERO TWO DOLLAR ONE HUNDRED TEN POINT OH FIVE YEN OFF ZERO POINT EIGHT FIVE ONE POINT SEVEN FOUR FIVE OH MARKS OFF ZERO POINT ZERO ZERO FOUR SIX AIR CANADA SAID IT IS DROPPING LITIGATION THAT HAS BLOCKED P. W. A. CORPORATION THE FINANCIALLY TROUBLED PARENT OF CANADIAN AIRLINES INTERNATIONAL FROM CONCLUDING AN ALLIANCE WITH A. M. R. CORPORATION THE SURPRISE MOVE CAME AMID INDICATIONS THE CANADIAN GOVERNMENT MAY BE PREPARING TO GRANT AIR CANADA LONG SOUGHT ASIAN ROUTES P. W. A. HAS ARGUED THAT IT WOULD BE SERIOUSLY HARMED IF AIR CANADA IS ALLOWED TO FLY TO JAPAN OR HONG KONG STRONG MARKETS FOR P. W. A. P. W. A. AND A. M. R. WELCOMED AIR CANADA'S ANNOUNCEMENT BUT THEY STOPPED SHORT OF SAYING A. M. R.'S PROPOSED INVESTMENT OF TWO HUNDRED FORTY SIX MILLION CANADIAN DOLLARS ONE HUNDRED EIGHTY SEVEN POINT THREE MILLION U. S. DOLLARS FOR A THIRTY THREE PERCENT STAKE IN CANADIAN AIRLINES IS NOW A SURE THING A P. W. A. SPOKESWOMAN NOTED THAT OTHER LEGAL CHALLENGES MAY REMAIN A. M. R. ALSO MUST STILL CONDUCT A DUE DILIGENCE EXAMINATION OF CANADIAN AIRLINES THE LEGAL CHALLENGES BY AIR CANADA AND OTHERS HAVE CENTERED ON CANADIAN AIRLINE'S EFFORT TO WITHDRAW ITS DATA PROCESSING BUSINESS FROM THE GEMINI GROUP AUTOMATED RESERVATIONS SYSTEM SHARED BY THE TWO CANADIAN CARRIERS AND SHIFT IT TO A. M. R.'S SABRE NETWORK A KEY CONDITION OF A. M. R.'S PROPOSED INVESTMENT GEMINI IS JOINTLY OWNED BY P. W. A. AIR CANADA AND A SUBSIDIARY OF GALILEO INTERNATIONAL WHICH IS OWNED BY A CONSORTIUM OF U. S. AND EUROPEAN AIRLINES SABRE IS GEMINI'S MAIN COMPETITOR IN CANADA CANADA'S COMPETITION TRIBUNAL A QUASI JUDICIAL AGENCY APPROVED IN NOVEMBER CANADIAN AIRLINES' WITHDRAWAL FROM GEMINI GROUP BUT AIR CANADA GEMINI AND THE GALILEO UNIT COVIA CANADA CORPORATION APPEALED THE RULING TO CANADA'S FEDERAL COURT OF APPEAL IT ISN'T CLEAR WHETHER GEMINI AND COVIA INTEND TO PROCEED WITH THE APPEAL WITHOUT AIR CANADA GEMINI OFFICIALS DECLINED COMMENT AND COVIA OFFICIALS DIDN'T RETURN PHONE CALLS FOR ITS PART AIR CANADA SEEMED RESIGNED TO THE P. W. A. A. M. R. TIE UP QUOTE IT IS NOW TIME FOR BOTH AIR CANADA AND P. W. A. TO MOVE FORWARD AND FOCUS ON THE TASK OF REBUILDING OUR INDUSTRY QUOTE AIR CANADA SAID A SPOKESMAN FOR THE MONTREAL CARRIER DECLINED TO SAY WHY AIR CANADA DECIDED TO DROP ITS LEGAL CHALLENGES PREVIOUSLY COMPANY OFFICIALS HAD INDICATED THEY WOULD EXHAUST ALL LEGAL OPTIONS MEANWHILE CANADIAN TRANSPORT MINISTER DOUG YOUNG SAID IN OTTAWA THAT THE GOVERNMENT EXPECTS TO DECIDE VERY SOON WHETHER TO GRANT AIR CANADA'S RECENT REQUEST FOR ACCESS TO KANSAI AIRPORT IN OSAKA JAPAN WHICH IS SCHEDULED TO OPEN LATER THIS YEAR AIR CANADA IS ALSO SEEKING ACCESS TO HONG KONG CANADIAN AIRLINES INTERNATIONAL BASED IN CALGARY ALBERTA CURRENTLY IS THE ONLY CANADIAN CARRIER SERVING THOSE MARKETS AIR CANADA FIRST APPLIED FOR ACCESS TO JAPAN IN NINETEEN EIGHTY EIGHT AND TO HONG KONG IN NINETEEN NINETY BUT CANADA'S PREVIOUS CONSERVATIVE GOVERNMENT NEVER GRANTED THE ROUTES THE CURRENT GOVERNMENT WAS FORMED BY THE LIBERAL PARTY AFTER ELECTIONS LAST OCTOBER AIR CANADA SAYS IT IS BEING UNFAIRLY DENIED ACCESS TO FAST GROWING ASIAN MARKETS YESTERDAY'S DEVELOPMENTS PROMPTED SPECULATION THAT AIR CANADA HAD STRUCK A DEAL TO DROP ITS LITIGATION IN RETURN FOR ACCESS TO JAPAN BUT MR. YOUNG THE TRANSPORT MINISTER SAID AIR CANADA'S DECISION HAS NOTHING TO DO WITH ASIAN ROUTES SHARES OF BOTH CANADIAN CARRIERS WERE BOLSTERED BY THE DEVELOPMENTS IN HEAVY TRADING ON THE TORONTO STOCK EXCHANGE P. W. A. CLOSED AT ONE CANADIAN DOLLAR AND FIFTY CENTS A SHARE UP THIRTY CANADIAN CENTS AIR CANADA SHARES CLOSED AT SIX CANADIAN DOLLARS UP FIFTY CANADIAN CENTS REPRESENTATIVE JAMES LEACH R. IOWA INTRODUCED A WIDE RANGING BILL TO BOLSTER FEDERAL REGULATION OF DERIVATIVES ONE OF THE FINANCIAL WORLD'S FASTEST GROWING PRODUCTS THE PROPOSAL WOULD CREATE THE FEDERAL DERIVATIVES COMMISSION TO DRAFT UNIFORM ACCOUNTING CAPITAL AND OTHER STANDARDS FOR DERIVATIVES WHICH ARE FINANCIAL INSTRUMENTS THAT BANKS BROKERS AND THEIR CUSTOMERS USE TO DEFRAY THE RISK OF CHANGES IN INTEREST RATES STOCK PRICES FOREIGN EXCHANGE RATES AND COMMODITIES PRICES THE BILL WOULD PLACE A NEW LAYER OF FEDERAL REGULATION OVER INSURANCE COMPANIES WHICH AREN'T CURRENTLY REGULATED BY WASHINGTON IT WOULD ALSO IMPOSE NEW QUOTE MINIMUM PRUDENTIAL STANDARDS QUOTE ON USERS OF DERIVATIVES INCLUDING MUNICIPALITIES AND PENSION FUNDS MUTUAL FUNDS THAT USE DERIVATIVES WOULD BE REQUIRED TO DISCLOSE THE RISKS THEY FACE THE BILL IS CERTAIN TO TRIGGER STIFF OPPOSITION FROM THE SECURITIES INDUSTRY ONE PURPOSE OF THE COMMISSION WOULD BE TO MAKE SURE THAT BANKS BROKERS INSURANCE COMPANIES AND OTHERS THAT WRITE AND DEAL IN DERIVATIVES WILL PLAY BY THE SAME RULES THE BILL ALSO WOULD INSTRUCT THE FEDERAL RESERVE BOARD TO SEEK MORE UNIFORMITY AMONG INTERNATIONAL STANDARDS DOW JONES AND COMPANY SAID IT WILL PROVIDE FINANCIAL NEWS OVER THE INTERNET BY MID NINETEEN NINETY FOUR THE SERVICE TO BE CALLED DOWVISION ON THE INTERNET WILL INCLUDE THE FULL TEXT OF THE WALL STREET JOURNAL AND SAME DAY TEXT OF THE NEW YORK TIMES NEWS SERVICE THE DOW JONES NEWS SERVICE DOW JONES INTERNATIONAL NEWS SERVICE AND PRESS RELEASE SERVICES USERS OF THE INTERNET THE GLOBAL NETWORK LINKING THOUSANDS OF COMPUTER NETWORKS WILL BE ABLE TO RECEIVE THE FINANCIAL NEWS USING SOFTWARE THAT HELPS PEOPLE NAVIGATE AND SEARCH THE INTERNET DOW JONES SAID IT WILL CHARGE A FLAT MONTHLY FEE STILL TO BE DETERMINED DOW JONES PUBLISHES THE WALL STREET JOURNAL BARRON'S MAGAZINE COMMUNITY NEWSPAPERS AND OTHER PUBLICATIONS NEWSWIRES AND ELECTRONIC DATA SERVICES THE RUSSIAN PROSECUTOR GENERAL'S OFFICE OPENED A CRIMINAL INVESTIGATION AGAINST THE EXTREME NATIONALIST MEMBER OF PARLIAMENT VLADIMIR ZHIRINOVSKY ACCORDING TO NEWS AGENCIES HERE THE PROBE WAS REPORTEDLY PROMPTED BY COMPLAINTS THAT MR. ZHIRINOVSKY HAD BEEN SPREADING WAR PROPAGANDA MR. ZHIRINOVSKY AT A NEWS CONFERENCE WEDNESDAY DENIED THESE REPORTS QUOTE FORGET ABOUT ANYONE TRYING TO OPEN A CRIMINAL CASE AGAINST ME BETTER THINK ABOUT THOSE AGAINST WHOM CRIMINAL CASES WILL REALLY BE OPENED IN THE NEAR FUTURE HE SAID REFERRING TO HIS CRITICS UNDER RUSSIA'S CRIMINAL CODE A PERSON CONVICTED OF PEDDLING WAR PROPAGANDA COULD BE SENTENCED TO THREE TO EIGHT YEARS IN PRISON THOUGH MR. ZHIRINOVSKY'S MEMBERSHIP IN PARLIAMENT CONFERS IMMUNITY HE COULD STILL BE CONVICTED FOR ACTS COMMITTED BEFORE HE WAS ELECTED ON DECEMBER TWELFTH AMONG THOSE WHO HAVE RECENTLY ACCUSED MR. ZHIRINOVSKY OF SPREADING WAR PROPAGANDA IS FORMER FIRST DEPUTY PRIME MINISTER YEGOR GAIDAR WHO EARLIER THIS MONTH RESIGNED FROM PRESIDENT BORIS YELTSIN'S CABINET IN PROTEST AGAINST A BACKWARD TILT IN ECONOMIC POLICY UNIVERSITY OF WISCONSIN FOOTBALL FANS WHO DISCOVERED TOO LATE THEY HAD NO ROSE BOWL TICKETS HAVE BADGERED FEDERAL OFFICIALS INTO EXPANDING A RULE THAT PROTECTS PRO FOOTBALL FANS FROM SUCH MISHAPS TRANSPORTATION SECRETARY FEDERICO PENA IS EXPECTED TO PROPOSE TODAY THAT THE RULE WHICH REQUIRES TOUR PACKAGE OPERATORS TO HAVE SUPER BOWL TICKETS IN HAND IF THE DEAL THEY ARE MARKETING INCLUDES TICKETS BE EXTENDED TO ANY COLLEGE FOOTBALL BOWL GAME AND THE FINAL FOUR COLLEGE BASKETBALL TOURNAMENT GAMES SENATOR HERB KOHL D. WISCONSIN INTRODUCED LEGISLATION TUESDAY TO ACCOMPLISH THE SAME THING SAYING THAT AS MANY AS TWO THOUSAND BADGER FANS PURCHASED TRAVEL PACKAGES FOR THE JANUARY FIRST ROSE BOWL AND THEN ARRIVED IN CALIFORNIA TO FIND OUT THE TICKETS DIDN'T EXIST QUOTE HUNDREDS OF THOSE HAD TO WATCH THE EVENT ON T. V. IN A ROOM NEARBY THE STADIUM QUOTE MR. KOHL SAID THE TRANSPORTATION DEPARTMENT WHICH ENACTED THE SUPER BOWL RULE IN NINETEEN EIGHTY SAID IT HASN'T DETECTED ANY VIOLATIONS IN RECENT YEARS EXPANDING THE RULE REQUIRES A FORMAL RULE MAKING PROCEEDING INCLUDING A PERIOD FOR PUBLIC COMMENT PYXIS CORPORATION SAN DIEGO A MAKER OF PHARMACEUTICALS SYSTEMS FOR HOSPITALS DECLARED A TWO FOR ONE STOCK DIVIDEND PAYABLE ON OR ABOUT FEBRUARY SIXTEENTH TO STOCK OF RECORD FEBRUARY SEVENTH THE STOCK DIVIDEND WILL HAVE THE EFFECT OF DOUBLING THE STOCK OUTSTANDING THE FRIGID COLD HAS GOTTEN THE BEST OF MANY VANGUARD GROUP DIVIDEND CHECKS MANY OF THE TENS OF THOUSANDS OF CHECKS MAILED ON JANUARY THIRD HAVE NOT REACHED THEIR DESTINATION AND THE VALLEY FORGE PENNSYLVANIA MUTUAL FUND GROUP SAID POOR WEATHER CONDITIONS ARE TO BLAME ICY ROADS AND FREEZING TEMPERATURES CAUSED PROBLEMS IN VANGUARD'S MAILINGS TO SHAREHOLDERS SAID BRIAN MATTES VICE PRESIDENT COMMUNICATIONS FEDERAL EXPRESS DELIVERIES AND PICKUPS WERE SUSPENDED FOR TWO DAYS LAST WEEK WHILE ROADS WERE CLOSED DUE TO ICING CONDITIONS QUOTE THE MAIL IS JUST CREEPING QUOTE MR. MATTES SAID QUOTE BUT MANY ARE STARTING TO ARRIVE QUOTE NEARLY ONE MILLION COPIES OF THE VANGUARD SHAREHOLDER NEWSLETTER WERE MAILED FROM JANUARY FOURTEENTH THROUGH JANUARY EIGHTEENTH ONLY A FEW SHAREHOLDERS HAVE RECEIVED THEIR COPIES HE SAID OTHER BIG FUND GROUPS HAVE BEEN MORE FORTUNATE FIDELITY INVESTMENTS BOSTON THE NATION'S LARGEST MUTUAL FUND COMPANY HAS NOT EXPERIENCED ANY DELAYS IN MAILINGS TO SHAREHOLDERS SAID NEAL LITVACK EXECUTIVE VICE PRESIDENT AT FIDELITY FIDELITY HAS A DISTRIBUTION CENTER FOR ITS MAILINGS IN DALLAS SO IT AVOIDED THE FRIGID NORTHEAST TEMPERATURES HE SAID THESE SHOULD BE THE BEST OF TIMES FOR GILBERT PLUMBING COMPANY WITH HOME BUILDING BOOMING HERE THE COMPANY EXPECTS TO INSTALL PLUMBING IN ABOUT THREE THOUSAND HOMES THIS YEAR FAR MORE THAN THE FIVE HUNDRED HOMES A YEAR IT DID IN NINETEEN EIGHTY EIGHT AND NINETEEN EIGHTY NINE THE TROUGH OF THE RECENT RECESSION HERE IN THE COMPANY'S BACK LOT ON A RECENT AFTERNOON DOZENS OF PLUMBERS SCRAMBLED TO LOAD TRUCKS WITH FAUCETS TOILETS AND PIPES FOR THE NEXT DAY'S WORK YET AS HE PACED THE BUSTLING YARD C. A. GILBERT THE COMPANY'S SIXTY FOUR YEAR OLD FOUNDER WORE THE STEELY GRIMACE OF A BESIEGED GENERAL WITH HIS NINETY SIX EMPLOYEES ALREADY WORKING SIX DAY DAWN TO DUSK WEEKS TO KEEP UP WITH DEMAND MR. GILBERT IS STRUGGLING TO RECRUIT THIRTY MORE PLUMBERS BY AMONG OTHER THINGS ADVERTISING IN NEWSPAPERS AS FAR AWAY AS NEW YORK MINNEAPOLIS AND BISMARCK N. D. HE ISN'T VERY HOPEFUL A BLITZ OF HELP WANTED ADS IN MAJOR CALIFORNIA NEWSPAPERS LAST FALL DREW ONLY TWENTY PHONE CALLS AND JUST ONE PLUMBER WAS HIRED MEANWHILE LOCAL COMPETITORS OFFERING AN EXTRA DOLLAR OR TWO AN HOUR RECRUIT GILBERT PLUMBERS AS THEY LEAVE THE COMPANY LOT AT NIGHT QUOTE IT'S JUST A NIGHTMARE QUOTE MR. GILBERT LAMENTS WE CAN'T GET PEOPLE MANY CONTRACTORS AROUND THE COUNTRY HAVE THE SAME PROBLEM THERE IS A CRITICAL NEED FOR SKILLED WORKERS SAYS RICK HARRIS A SPOKESMAN FOR THE HOME BUILDERS INSTITUTE AN INDUSTRY RESEARCH GROUP IT'S A NATIONAL PROBLEM AS THE INDUSTRY REBOUNDS FROM A WITHERING DOWNTURN THE PROBLEM HAS SO FAR BEEN MOST ACUTE IN RESIDENTIAL CONSTRUCTION WHERE THE RECOVERY HAS OUTPACED THE COMMERCIAL AND INDUSTRIAL SECTORS WITH LOW INTEREST RATES AND MODERATING PRICES UNLEASHING PENT UP DEMAND FOR HOMES CONTRACTORS IN DOZENS OF MARKETS ARE HAVING TROUBLE FINDING SKILLED CARPENTERS PLUMBERS AND ELECTRICIANS THE SHORTAGE ALSO IS SPAWNING CONCERN ABOUT WORK QUALITY AS DESPERATE CONTRACTORS SETTLE FOR LESS RELIABLE HELP MEANWHILE PROJECTS ARE DELAYED AND COSTS INCREASED AS WORKERS DEMAND HIGHER WAGES IN KANSAS CITY MISSOURI A SHORTAGE OF SKILLED WORKERS HAS ADDED AS MUCH AS TWO MONTHS TO THE TIME REQUIRED TO BUILD A HOME OKLAHOMA CITY BRICKLAYERS ARE CHARGING AS MUCH AS FIFTY PERCENT MORE THAN A YEAR AGO FOR THEIR SERVICES FRUSTRATED DENVER HOME BUILDERS ARE PREPARING TO HOLD A SERIES OF JOB FAIRS IN OTHER CITIES AND WITH THE PRIME SUMMER BUILDING SEASON APPROACHING THE MASSIVE EFFORT TO REBUILD LOS ANGELES IS LIKELY TO AGGRAVATE THE PROBLEM THE EARTHQUAKE IS GOING TO FURTHER PUT A SQUEEZE ON THE MANPOWER SITUATION NATIONWIDE SAYS PETER COCKSHAW PUBLISHER OF AN INDUSTRY NEWSLETTER QUOTE AND I DON'T KNOW THAT THEY ARE GOING TO GET ALL OF THE SKILLED PEOPLE THAT ARE NEEDED QUOTE CONSTRUCTION HAS ALWAYS GONE THROUGH BOOM AND BUST CYCLES THAT DROVE WORKERS FROM REGION TO REGION IN SEARCH OF JOBS AS THE DEMAND FOR SKILLED LABOR REVIVED IN AN AREA PAY RATES ROSE AND THE WORKERS RETURNED BUT THAT ISN'T HAPPENING NOW INSTEAD REGIONAL BUILDING BOOMS ARE EXPOSING LONG FESTERING INDUSTRY PROBLEMS BETWEEN NINETEEN EIGHTY THREE AND NINETEEN NINETY TWO THE NATION'S WORK FORCE INCREASED ABOUT SEVENTEEN PERCENT TO ONE HUNDRED THREE POINT SEVEN MILLION WORKERS BUT THE NUMBER OF CONSTRUCTION WORKERS ROSE ONLY ABOUT TEN PERCENT TO FOUR POINT FIVE MILLION MOREOVER INDUSTRY EXECUTIVES SAY FEWER AND FEWER OF THOSE WORKERS ARE THE WELL TRAINED JOURNEYMEN OF A GENERATION AGO WE CAN ALWAYS FIND ENOUGH PEOPLE TO SLAM TOGETHER SOME FORMS AND DO THE GRUNT WORK SAYS DAN BENNET EXECUTIVE VICE PRESIDENT OF ASSOCIATED BUILDERS AND CONTRACTORS A TRADE GROUP BASED IN ROSSLYN VIRGINIA IT'S THE SKILLS WHERE WE ARE GOING TO HAVE A PROBLEM AND ALREADY DO THOSE GROWING SHORTAGES ARE THE CULMINATION OF MORE THAN A DECADE OF TURMOIL WITHIN THE INDUSTRY IN SOME FAMILIES GENERATION ONCE FOLLOWED GENERATION INTO THE CONSTRUCTION TRADES SUCH JOBS USUALLY PAID BETTER AND WERE MORE CHALLENGING THAN MANUFACTURING WORK AND THEY OFFERED BROAD OPPORTUNITIES FOR PEOPLE TO START UP THEIR OWN BUSINESSES BUT DURING THE NINETEEN SEVENTIES AND NINETEEN EIGHTIES THOSE TRADITIONS BEGAN ERODING AS MAJOR CORPORATIONS AND OTHER CUSTOMERS IN A QUEST FOR LOWER BUILDING COSTS AWARDED MORE JOBS TO NONUNION CONTRACTORS AS UNIONS' MARKET SHARE DWINDLED CUTTHROAT COMPETITION AMONG SUCH FIRMS DROVE DOWN WAGES BY NINETEEN EIGHTY EIGHT ACCORDING TO THE BUREAU OF LABOR STATISTICS MANUFACTURING WORKERS WERE EARNING MORE ABOUT SIXTEEN DOLLARS AND TWENTY SIX CENTS AN HOUR IN TOTAL COMPENSATION COMPARED WITH SIXTEEN DOLLARS AND TWENTY THREE CENTS FOR CONSTRUCTION WORKERS BY NINETEEN NINETY THREE THE GAP HAD INCREASED WITH MANUFACTURING WORKERS PULLING DOWN TWENTY DOLLARS AND NINE CENTS AN HOUR TOTAL COMPENSATION COMPARED WITH NINETEEN DOLLARS AND SEVENTY ONE CENTS IN CONSTRUCTION IN SOME REGIONS ESPECIALLY THE RIGHT TO WORK SOUTHWEST CONSTRUCTION WAGES FELL EVEN FURTHER FOR EXPERIENCED WORKERS INTO THE TWELVE DOLLAR TO FIFTEEN DOLLAR AN HOUR RANGE WITH NO BENEFITS OLDER CRAFT WORKERS RETIRED AND MANY YOUNGER JOURNEYMEN LEFT THE INDUSTRY AND WE CAN'T RELY ON THE PEOPLE WE HAVE LOST COMING BACK SAYS JOHN HEFFNER TRAINING DIRECTOR FOR THE ASSOCIATED GENERAL CONTRACTORS OF AMERICA WHICH REPRESENTS MANY LARGE COMMERCIAL AND INDUSTRIAL CONTRACTORS I THINK THEY HAVE JUST HAD IT WITH A LACK OF BENEFITS AND GUARANTEED HOURS THEY HAVE JUST HAD IT WITH BEING TREATED AS A COST RATHER THAN AN ASSET FOR A TIME NONUNION CONTRACTORS STILL COULD FIND ENOUGH SKILLED HELP FROM THE RANKS OF FORMER UNION MEMBERS BUT THEY WEREN'T REPLENISHING THE SUPPLY BY RECRUITING AND TRAINING YOUNG WORKERS BUT WHILE EXPERIENCED PEOPLE MIGHT STILL EARN TWELVE DOLLARS TO FIFTEEN DOLLARS AN HOUR POTENTIAL RECRUITS FROM THE BABY BUST GENERATION BEGAN FINDING THAT STARTING WAGES FOR NEW TRAINEES HAD SLID AS LOW AS FIVE DOLLARS AN HOUR IN SOME TRADES AND THAT THEY COULD EARN NEARLY AS MUCH MANNING A FAST FOOD COUNTER OR STOCKING STORE SHELVES AND THE DIFFERENCE WASN'T ENOUGH TO MAKE UP FOR CONSTRUCTION'S DIRT DANGER AND FEW BENEFITS PLUS THE UNCERTAINTY OF AN UNEMPLOYMENT RATE THAT REGULARLY WAS DOUBLE THE NATIONAL AVERAGE BY LAST YEAR EVEN THE ASSOCIATED BUILDERS AND CONTRACTORS WHOSE MEMBERS ARE PRIMARILY NONUNION WAS SOUNDING THE ALARM IN ONE NEWSLETTER MR. BENNET THE TRADE GROUP EXECUTIVE WROTE THAT MANY CONSTRUCTION WORKERS COULD NO LONGER AFFORD HOMES OR HEALTH INSURANCE HE ADDED THAT ACCORDING TO ONE SURVEY YOUNG PEOPLE CONSIDERED A CAREER IN CONSTRUCTION ONLY SLIGHTLY MORE APPEALING THAN MIGRANT FARM WORK WHEN YOU SQUASH DOWN YEAR AFTER YEAR ON WAGES YOU DON'T ATTRACT A GOOD PERSON INTO THE INDUSTRY HE OBSERVES STEPHEN GUBIN CHIEF EXECUTIVE OF PHOENIX BASED WILSON ELECTRIC COMPANY WHICH HAS FOUR HUNDRED EMPLOYEES COULDN'T EVEN PERSUADE HIS OWN SON TO LEARN THE TRADE QUOTE THE LABOR SUPPLY ISN'T THERE BECAUSE THE KIDS HAVEN'T ACCEPTED THIS INDUSTRY AS A VIABLE PLACE TO GO FOR THEIR CAREERS QUOTE HE SAYS THOSE WHO HAVE FIND TRAINING IN SHORT SUPPLY HUNDREDS OF VOCATIONAL SCHOOLS HAVE ABANDONED CONSTRUCTION PROGRAMS IN FAVOR OF HIGH TECH FIELDS ONE NINETEEN NINETY STUDY BY THE CONSTRUCTION LABOR RESEARCH COUNCIL ESTIMATED THAT THE INDUSTRY WAS TRAINING ONLY ABOUT TWO THIRDS THE NUMBER OF WORKERS IT WOULD NEED IN THE NINETEEN NINETIES UNION APPRENTICESHIP PROGRAMS LONG THE INDUSTRY'S PRIMARY TRAINING AND RECRUITING GROUND HAVE SHRIVELED AS THE UNIONS THEMSELVES HAVE LOST WORK THE EMPLOYERS DEMAND A SKILLED WORK FORCE AND THAT IS OUR PRODUCT SAYS RAY ROBERTSON WHO OVERSEES APPRENTICESHIP PROGRAMS FOR THE A. F. L. C. I. O.'S BUILDING TRADES COUNCIL BUT WHILE THE UNIONS' TRAINING APPARATUS REMAINS IN PLACE THE SYSTEM TOOK ON ONLY ABOUT ONE HUNDRED SEVENTY THOUSAND NEW TRAINEES LAST YEAR DOWN FROM SOME TWO HUNDRED THOUSAND ANNUALLY IN THE EARLY NINETEEN EIGHTIES SAYS BILL MUNS DIRECTOR OF TRAINING FOR IRONWORKERS LOCAL SEVENTY FIVE IN PHOENIX IT DOES NO GOOD TO TRAIN PEOPLE IF YOU DON'T HAVE THE JOBS MOREOVER MOST CONTRACTORS PROVIDE ONLY MINIMAL ON THE JOB TRAINING TO SPEED UP PRODUCTION MANY HAVE BROKEN DOWN THE CRAFTS INTO DOZENS OF REPETITIVE TASKS AND TEACH A WORKER ONLY TO INSTALL TOILETS HANG DOORS OR BUILD CHIMNEYS IN MANY CASES YOU ARE NO LONGER A CARPENTER YOU ARE A CUTTER YOU CUT BOARDS ALL DAY SAYS DAVID WILKINSON EXECUTIVE DIRECTOR OF THE PHOENIX A. B. C. OFFICE WHO HAS BEEN STRUGGLING TO PERSUADE LOCAL NONUNION CONTRACTORS TO FUND A BETTER TRAINING PROGRAM MOST HAVE BALKED FEARING THAT COMPETITORS WON'T CONTRIBUTE AND THUS WILL GAIN A COST ADVANTAGE IN BIDDING IF YOU THROW TWO CONTRACTORS OFF A BRIDGE THEY WILL SCRATCH KICK AND GOUGE EACH OTHER ALL THE WAY TO IMPACT EVEN THOUGH THEY KNOW THEY ARE GOING TO DIE AT THE BOTTOM HE SAYS THE PHOENIX MARKET STRIKINGLY ILLUSTRATES THE FRUITS OF SUCH RUTHLESS COMPETITION STREWN ACROSS A VAST DESERT VALLEY ARIZONA'S LARGEST CITY IS VIRTUALLY EXPLODING WITH CONSTRUCTION ACTIVITY AROUND ITS EDGES HOME BUILDERS' BILLBOARDS LINE THE HIGHWAYS AND ACRE AFTER ACRE OF FORMER COTTON FIELDS AND DESERT HAS COME ALIVE WITH BULLDOZERS GRADING LOTS AND CONSTRUCTION CREWS WRESTLING UP THE FRAMES OF NEW HOMES A NEAR RECORD TWENTY TWO THOUSAND SIX HUNDRED FIFTY TWO NEW HOME CONSTRUCTION PERMITS WERE ISSUED IN THE PHOENIX MARKET LAST YEAR UP TWENTY THREE PERCENT FROM NINETEEN NINETY TWO AND NEARLY DOUBLE THE NINETEEN NINETY TOTAL AND HAD IT NOT BEEN FOR A SHORTAGE OF CONSTRUCTION LABOR WE WOULD HAVE EXCEEDED THAT SAYS R. L. BROWN A LOCAL INDUSTRY ANALYST THAT SHORTAGE IS PUSHING THE BUILDING TIME FOR THE AVERAGE PHOENIX HOME TOWARD ONE HUNDRED EIGHTY DAYS FROM THE TRADITIONAL SEVENTY FIVE TO NINETY DAYS AMID FLUCTUATING LUMBER PRICES AND INTEREST RATES SUCH DELAYS HAVE MADE IT DIFFICULT FOR BUILDERS TO ESTIMATE PRICES AND FOR HOME BUYERS TO LOCK IN LOANS SCHUCK AND SONS CONSTRUCTION COMPANY WHICH SPECIALIZES IN PUTTING UP HOUSE FRAMES FOR OTHER CONTRACTORS HAS BEEN TRYING TO ADD ABOUT ONE HUNDRED FIFTY FRAMING CARPENTERS TO THE FIVE HUNDRED THIRTY FIVE IT ALREADY EMPLOYS THE COMPANY KEEPS RUNNING NEWSPAPER ADS AS FAR AWAY AS SEATTLE SALT LAKE CITY AND DENVER BUT SO FAR THE RESPONSE HAS BEEN SPARSE LAST SUMMER A SERIES OF ADS IN THE LOS ANGELES AREA DREW THREE HUNDRED CALLS BUT ONLY TWELVE PEOPLE SHOWED UP TO WORK IN SCHUCK'S PHOENIX OPERATIONS AND AFTER A WEEK OF RAIDS BY LABOR HUNGRY COMPETITORS ONLY TWO WERE STILL ON THE JOB QUOTE THEIR CHOICE NOT OURS QUOTE GRUMBLES CRAIG STEELE SCHUCK'S EXECUTIVE VICE PRESIDENT WHO IS STILL ADVERTISING IN THE LOCAL PAPER THOUGH ADMITTING THAT QUOTE IT'S JUST TO LET THE BUILDERS KNOW THAT WE ARE STILL TRYING QUOTE GROWING DESPERATE CONTRACTORS ARE ADVERTISING FULL HEALTH BENEFITS PAID VACATIONS AND PROFIT SHARING PLANS A FEW HAVE OFFERED EMPLOYEES FIFTY DOLLARS FOR EVERY NEW HIRE THEY BRING IN FOR A TIME LAST YEAR DEL WEBB CORPORATION A MAJOR HOME BUILDER HERE RAN ADS ON A LOCAL ROCK STATION OFFERING TO TOP ANY FRAMING CARPENTER'S LAST PAY STUB BY TWO DOLLARS AN HOUR MEANWHILE RECRUITERS TURN UP ON CONSTRUCTION SITES HIRING AWAY TRADESMEN GUYS ARE JUMPING SHIP LEFT AND RIGHT FOR FIFTY CENTS AN HOUR THE LOCAL A. B. C.'S MR. WILKINSON SAYS YOU DON'T KNOW WHO'S GOING TO SHOW UP ON THE JOB FROM ONE DAY TO THE NEXT OR HOW GOOD THEY WILL BE WHILE THERE HAVE BEEN NO SCANDALS OR MAJOR ACCIDENTS COMPLAINTS ABOUT BUILDING QUALITY AND TIMELINESS TO THE ARIZONA REGISTRAR OF CONTRACTORS A STATE CONSUMER AGENCY HAVE RISEN BY THREE PERCENT TO FOUR PERCENT IN EACH OF THE PAST FIVE YEARS AREA CONTRACTORS ADMIT THAT THEY HAVE TO REDO A LOT OF THEIR CREWS' WORK AND THAT CONCERN ABOUT THEIR WORKERS' SKILLS HAS SPURRED THEM TO HIRE MORE SUPERINTENDENTS AND INTERNAL INSPECTORS THEY ARE JUST NOT UP TO THE CALIBER THAT THEY USED TO BE SAYS KIM BANNISTER A DEL WEBB EXECUTIVE ASKED TO MOVE A GAS LINE THAT HE HAD MIS INSTALLED ONE RECENT HIRE AT GILBERT PLUMBING SIMPLY REVVED UP HIS CHAIN SAW AND CUT A BROAD GASH INTO THE DRYWALL AND STUDS OF A NEWLY BUILT HOME YOU HIRE THEM AND TAKE YOUR CHANCES SAYS MR. GILBERT A BLUNT SPOKEN MAN WHO IS STRUGGLING TO RECONCILE THE CURRENT TURMOIL WITH A WORK ETHIC FORGED LONG AGO ON HIS PARENTS' NORTH DAKOTA WHEAT FARM SINCE ARRIVING IN PHOENIX IN NINETEEN SIXTY NINE WITH ENOUGH MONEY TO BUY TWO SECOND HAND TRUCKS HE HAS BUILT A BOOMING PLUMBING BUSINESS WITH SIXTY SIX TRUCKS A COMPUTERIZED BUSINESS OFFICE AND REVENUE OF ABOUT NINE MILLION DOLLARS LAST YEAR ALL THREE OF HIS ADULT CHILDREN HAVE JOINED HIM AT GILBERT PLUMBING A DAUGHTER DOES THE BILLING ONE SON IS A SUPERINTENDENT AND ANOTHER OVERSEES THE BUSINESS OPERATION MR. GILBERT STILL KNOWS THE VINTAGE AND MILEAGE OF ALL HIS TRUCKS WHICH ARE WASHED WEEKLY HIS BACK LOT IS A SPRAWLING BUT IMMACULATE COLLECTION OF BINS FILLED WITH PLUMBING FIXTURES ALTHOUGH MR. GILBERT'S PAY OF TEN DOLLARS TO FOURTEEN DOLLARS AN HOUR FOR EXPERIENCED PLUMBERS ISN'T THE MOST GENEROUS IN THE MARKET HE PROUDLY NOTES THAT HE KEPT HIS CORE GROUP OF SOME THIRTY PLUMBERS EMPLOYED DURING THE RECESSION NEVERTHELESS SOME OF HIS MOST LOYAL EMPLOYEES SAY THE BUSINESS HAS CHANGED JOURNEYMEN PLUMBERS SUCH AS KAREN SCHWEIGART WHOSE HUSBAND IS A COMPANY SUPERINTENDENT SAY THE QUALITY OF THE WORK FORCE HAS DROPPED HEALTH BENEFITS AND PAID VACATIONS ARE STILL HARD TO COME BY AND WAGES HAVEN'T KEPT PACE WITH INFLATION THERE'S NOTHING AT THE END OF THE RAINBOW IN CONSTRUCTION ANYMORE SHE SAYS ADDING THAT SHE HAS DISCOURAGED HER CHILDREN FROM ENTERING THE BUSINESS MEANWHILE THE RELATIVELY LOW PAY AND A LACK OF BENEFITS HAVE DRIVEN AWAY PLUMBERS SUCH AS LOUIS LEYBA WHO QUIT GILBERT PLUMBING FIVE MONTHS AGO QUOTE I WORKED FOR A FEW SHOPS AND THEY ARE ALL THE SAME QUOTE GRUMBLES THE FORTY EIGHT YEAR OLD MR. LEYBA WHO SAYS HIS CURRENT JOB AS A GROUNDSKEEPER FOR A SUBURBAN GOVERNMENT OFFERS BETTER BENEFITS THAN ANY HE EVER GOT IN PLUMBING ANOTHER FORMER GILBERT PLUMBER RALPH NAYLOR SAYS NO AMOUNT OF MONEY COULD PERSUADE HIM TO PICK UP HIS WRENCHES AGAIN I HAD TO BORROW MONEY TO MAKE HOUSE PAYMENTS SAYS MR. NAYLOR WHO BECAME A BUILDING APPRAISER CONSTRUCTION COMPANIES ARE SAYING THAT THEY WANT SKILLED LABOR BUT THEY DON'T WANT TO PAY FOR IT ODDLY ENOUGH MR. GILBERT ACKNOWLEDGES THAT NAVIGATING THROUGH THE DOWNTURN WASN'T NEARLY AS HARD AS DEALING WITH A MARKET WHERE SOME GENERAL CONTRACTORS DESPERATE FOR HIS SERVICES HAVE TOLD HIM TO NAME HIS PRICE TRIPLING HIS WORK FORCE TO HANDLE THE LOAD HAS BEEN A NIGHTMARE MANY PLUMBERS HIRED IN THE AFTERNOON CONTINUE TO SHOP FOR BETTER PAYING JOBS AND NEVER PUNCH IN THE FOLLOWING MORNING ON ANY GIVEN DAY A DOZEN OR SO OF HIS WORKERS DON'T SHOW UP AND MOST DON'T CALL IN EIGHT QUIT FOR OTHER JOBS ONE RECENT WEEK ONE ASKED FOR AND GOT A FOUR HUNDRED FIFTY DOLLAR ADVANCE THE DAY BEFORE HE DISAPPEARED WE'VE HAD SOME EMPLOYEES WHOSE FATHERS HAVE DIED THREE TIMES GRUMBLES MR. GILBERT WHO HESITATES TO CRITICIZE PUNISH OR FIRE WORKERS KNOWING THEY CAN GET ANOTHER JOB IN HALF AN HOUR YOU GOT TO BE CAREFUL HOW YOU TALK TO THEM DESPERATE FOR HELP MR. GILBERT ALLOWS HIS SECRETARIES TO MAKE HIRING DECISIONS IF COMPANY EXECUTIVES AREN'T AVAILABLE TO INTERVIEW WALK INS HE EVEN HAS TAKEN ON PLUMBERS WHO HAVING LOST THEIR DRIVERS' LICENSES BECAUSE OF SPEEDING OR DRUNKEN DRIVING CONVICTIONS NEED A DRIVER TO FERRY THEM FROM JOB TO JOB RECRUITING IS NEVER FAR FROM MR. GILBERT'S MIND AS HE AND ONE OF HIS SONS WERE DRIVING BACK TO THE OFFICE ONE RECENT AFTERNOON MR. GILBERT SUDDENLY PERKED UP STEVE THERE ARE TWO PLUMBERS' TRUCKS UP AHEAD OF YOU HE SAID QUOTE SPEED UP AND SEE IF YOU CAN CATCH'EM QUOTE THE MUNICIPAL SECURITIES RULE MAKING BOARD PROPOSED SPECIFIC RECORD KEEPING REQUIREMENTS FOR GIFTS AND GRATUITIES MADE BY MUNICIPAL BOND DEALERS IN THEIR BUSINESS DEALINGS THE PROPOSAL BY THE M. S. R. B. WHICH RECENTLY FILED A RULE TO END QUOTE PAY TO PLAY QUOTE POLITICAL CONTRIBUTIONS BY DEALERS TO STATE AND LOCAL GOVERNMENT OFFICIALS WOULD MODIFY AN EXISTING ANTIBRIBERY RULE THE PROPOSED RULES WOULD REQUIRE DEALERS TO KEEP SPECIFIC RECORDS ON GIFTS AND GRATUITIES GIVEN IN RELATION TO MUNICIPAL SECURITIES ACTIVITIES DEALERS WOULD HAVE TO KEEP RECORDS FOR SIX YEARS THE BOARD'S CURRENT GIFTS AND GRATUITIES RULE BARS A DEALER FROM GIVING DIRECTLY OR INDIRECTLY ANYTHING OF VALUE IN EXCESS OF ONE HUNDRED DOLLARS A YEAR TO ANY PERSON OTHER THAN AN EMPLOYEE OR PARTNER IN CONNECTION WITH ITS MUNICIPAL BOND ACTIVITIES THE RULE DOESN'T COVER CHARITABLE GIVING AND HAS NO RECORD KEEPING REQUIREMENT THE CURRENT RULE EXEMPTS NORMAL BUSINESS DEALINGS FROM THE ONE HUNDRED DOLLAR ANNUAL LIMIT THESE INCLUDE SUCH THINGS AS OCCASIONAL GIFTS OF MEALS OR TICKETS TO THEATRICAL OR SPORTING EVENTS AS WELL AS THE SPONSORING OF BUSINESS FUNCTIONS THAT ARE RECOGNIZED AS DEDUCTIBLE BUSINESS EXPENSES THE BOARD YESTERDAY SAID IT IS CONSIDERING WHETHER TO WRITE A NEW DEFINITION OF NORMAL BUSINESS DEALINGS AND REQUESTED COMMENTS ON THE MATTER M. S. R. B. CHAIRMAN DAVID CLAPP OF GOLDMAN SACHS AND COMPANY SAID THE PROPOSED RECORD KEEPING REQUIREMENT WOULD APPLY TO ALL GIFTS AND GRATUITIES INCLUDING THOSE ALLOWED UNDER EXCEPTIONS TO THE UNDERLYING RULE I KEPT THINKING DURING QUOTE GOLDEN GATE QUOTE THAT IT WOULD BE NICE IF THE CHARACTERS WOULD START SINGING THIS ISN'T MEANT TO INSULT THE MOVIE WHICH I LIKED BUT THERE WAS SOMETHING MISSING FROM THIS HISTORICAL DRAMA ABOUT SOCIAL INJUSTICE AND THWARTED LOVE I'M PRETTY SURE SOME GOOD TUNES AND SNAPPY LYRICS WOULD HAVE FILLED THE GAP THE STORY IS ABOUT AN OVEREAGER F. B. I. ROOKIE WHO HYPES THE EVIDENCE AGAINST A CHINESE AMERICAN LAUNDRY WORKER AND LABOR ORGANIZER ACCUSED OF BEING A COMMUNIST SYMPATHIZER IT'S NINETEEN FIFTY TWO THE HEIGHT OF THE RED SCARE THE LAUNDRY WORKER IS CONVICTED WRONGLY AND SPENDS TEN YEARS IN JAIL WHEN HE IS RELEASED THE F. B. I. MAN IS REASSIGNED TO THE CASE WHICH HE KNOWS NEVER HAD MERIT AND WHICH HE NO LONGER WANTS TO PURSUE THE LAUNDRY WORKER ALREADY WEAKENED BY HIS YEARS IN PRISON GOES MAD AND KILLS HIMSELF THE F. B. I. MAN TRIES TO ATONE FOR HIS PART IN THIS MISCARRIAGE OF JUSTICE BY OFFERING TO TAKE CARE OF THIS MAN'S DAUGHTER A COLLEGE STUDENT THEY FALL IN LOVE BUT WHEN SHE DISCOVERS HIS CONNECTION TO HER FATHER'S DEATH SHE BANISHES HIM FROM HER LIFE EVENTUALLY HOWEVER HE DOES FIND A WAY TO REDEEM HIMSELF PERHAPS I SEE THE BROADWAY MUSICAL POSSIBILITIES IN THIS DISTURBING MATERIAL BECAUSE OF THE FILM'S BOUNCY THEATRICALITY PLAYWRIGHT DAVID HENRY HWANG M. BUTTERFLY HAS WRITTEN THE STORY AS A FABLE THERE WAS ONCE A MAN WHO TRANSFORMED HIMSELF INTO AN ANGEL THE MOVIE BEGINS THE DIRECTOR JOHN MADDEN STAGED THE STORY AS A STRANGE COMBINATION OF NINETEEN FIFTIES MUSICALS AND NINETEEN FIFTIES FILMS NOIRS A MIX OF CORNY BREEZINESS AND DARK SURREALISM FOR EXAMPLE THE ESSENTIAL MORAL DILEMMA OF THE F. B. I. MAN IS ESTABLISHED WHILE HE IS KISSING THE PRETTY BLOND WOMAN HE HAS JUST PICKED UP AT A DANCE HALL SHE INTERRUPTS HIM WITH A SERIES OF QUESTIONS DOES HE UNDERSTAND THE DIFFERENCE BETWEEN LAW AND JUSTICE IF HE HAD TO CHOOSE ONE OVER THE OTHER WHICH WOULD HE CHOOSE IT'S A CUTE SCENE PLAYED FOR COMEDY THE PERFECT INTRODUCTION TO A FUNNY SONG ELSEWHERE HOWEVER THERE ARE STRONG EMOTIONAL MOMENTS PLAYED OUT IN DARK ALLEYS IN THE RAIN THE SIMPLICITY OF THIS APPROACH GIVES THE MOVIE A STRONG EMOTIONAL PUSH EVEN WHEN IT MIGHT COME OFF AS A LITTLE TOO GIMMICKY SOME OF THE PARTS RELY TOO HEAVILY ON CARICATURE LIKE BRUNO KIRBY AS THE FAST TALKING SIDEKICK BUT MOST OF THE ACTORS PLAY THESE MELODRAMATIC CHARACTERS WITH A LOT OF SINCERITY THEY PULL YOU IN MATT DILLON AS THE F. B. I. MAN SHOWS AGAIN THAT HE IS ONE OF THE MORE INTERESTING YOUNG ACTORS WORKING TODAY THERE'S THIS INTRIGUING BATTLE GOING ON BETWEEN HIS GOOD LOOKS AND SOME INNER COMPLEXITY AND BOTH THE PICTURE'S WOMEN ARE VERY GOOD TERI POLO AS THE RIGHTEOUS BLONDE AND JOAN CHEN AS THE WRONGED CHINESE AMERICAN GIRL WE MAY THINK IT'S O. K. FOR A FRENCHMAN TO SPEND HIS DYING MOMENTS TELLING US ABOUT HOW HE'S TRYING TO DECIDE BETWEEN HIS NICE WIFE AND HIS NICE MISTRESS THAT WAS THE PREMISE OF THE THINGS OF LIFE A BOOK BY FREDERIC GOLCHAN AND OF THE NINETEEN SEVENTY MOVIE THAT WAS INSPIRED BY IT NOW I SEE THAT THIS WAS A PERFECT EXAMPLE OF WHAT THE FRENCH WERE CALLING THE CULTURAL EXCEPTION DURING THE RECENT NEGOTIATIONS FOR THE GENERAL AGREEMENT ON TARIFFS AND TRADE A FRENCHMAN CAN GET AWAY GRACEFULLY WITH BEING WITH TWO WOMEN AT THE SAME TIME THERE'S EVEN AN EXPRESSION FOR IT LUCKY PIERRE BUT WHEN AN AMERICAN MAN SPENDS HIS LAST MOMENTS CAUGHT BETWEEN TWO WOMEN HE SEEMS LIKE A FLAKE AND A CREEP OR AT LEAST THAT'S HOW RICHARD GERE SEEMED TO ME IN INTERSECTION THE NEW AMERICAN VERSION OF THE THINGS OF LIFE WHICH EVEN IN ITS MORE CREDIBLE FRENCH FORM WAS ONLY A SO SO MOVIE AS I REMEMBER IT THE MAN IN THINGS OF LIFE HAD BEEN UNABLE TO MAKE HIS CHOICE BECAUSE HE WAS EQUALLY COMPELLED BY THE PULL OF HISTORY THE WIFE AND THE PULL OF PASSION THE MISTRESS THE ACTORS WHO INCLUDED ROMY SCHNEIDER AS THE MISTRESS AND THE ATMOSPHERE AND POSSIBLY THE FRENCHNESS OF IT ALL MADE HIS DILEMMA VITAL WHAT WAS THE BEST WAY FOR HIM TO SPEND THE REST OF HIS LIFE WITH THE FAMILY WHO HAD HELPED BUILD WHAT HE HAD OR WITH THE WOMAN WHO MADE HIM SEE THE POSSIBILITIES IN SOMETHING NEW NONE OF THESE THOUGHTS OCCURRED TO ME DURING QUOTE INTERSECTION QUOTE INSTEAD I FOUND MYSELF WONDERING ABOUT WHY THE FILMMAKERS DECIDED TO REMAKE THIS FILM IN THE PLACID BEAUTY OF VANCOUVER NOT EXACTLY A CAULDRON OF BURNING PASSION THE MISCASTING ISN'T ONLY GEOGRAPHIC HOWEVER DEPTH OF FEELING ISN'T MR. GERE'S SPECIALTY CERTAINLY AND LOLITA DAVIDOVICH AS THE MISTRESS HAS BEEN GIVEN NOTHING TO DO THAT CONVEYS HER CHARACTER'S MAGNETIC PULL WHICH BRINGS ME TO SHARON STONE AS THE WIFE A BEAUTIFUL AND TALENTED ARCHITECT WE CAN AT LEAST SEE WHERE HER ATTRACTION LIES NO NOT THE OBVIOUS NOT THE LITHE BODY AND BEAUTIFUL FACE HERE SHARON STONE REPRESENTS HISTORY THE TIES OF WORK AND FAMILY AND HEARTH IT HAS BEEN SAID THAT MS. STONE WITH THE RIGHT SCRIPT MIGHT JUST BE THIS GENERATION'S GRACE KELLY THERE IS SOME PHYSICAL RESEMBLANCE HOWEVER IT'S MORE LIKELY THAT MS. STONE WILL BE REMEMBERED AS THIS GENERATION'S TIPPI HEDREN MELANIE GRIFFITH'S MOTHER THE BLANK ACTRESS ALFRED HITCHCOCK TURNED TO AFTER GRACE KELLY LEFT SHOW BUSINESS TO BECOME PRINCESS GRACE OF MONACO VIDEO TIP TO UNDERSTAND THE DIFFERENCE JUST LOOK AT GRACE KELLY IN REAR WINDOW DIAL M. FOR MURDER AND TO CATCH A THIEF THEN WATCH TIPPI HEDREN IN THE BIRDS AND MARNIE STRENGTH IN THE BOND MARKET AND A SOLID SNAPBACK IN BELEAGUERED UTILITY STOCKS CLEARED THE WAY FOR GAINS IN STOCKS WEAKNESS IN BONDS AND WORRISOME TECHNICAL FACTORS INCLUDING A TUMBLING DOW JONES UTILITIES AVERAGE HAD HELPED KNOCK STOCKS LOWER IN THE PREVIOUS TWO SESSIONS THE DOW JONES INDUSTRIAL AVERAGE WHICH TUESDAY POSTED ITS BIGGEST DECLINE OF NINETEEN NINETY FOUR ADDED TWELVE POINT SIX SIX OR ZERO POINT THREE THREE PERCENT TO THREE THOUSAND NINE HUNDRED EIGHT POINT OH OH IT IS BACK WITHIN EASY STRIKING DISTANCE OF THE RECORD THREE THOUSAND NINE HUNDRED FOURTEEN POINT FOUR EIGHT THAT WAS SET FRIDAY BROAD BASED INDEXES ALSO ADVANCED ON THE NEW YORK STOCK EXCHANGE ADVANCING ISSUES LED DECLINERS ABOUT ONE THOUSAND ONE HUNDRED SEVENTY TWO TO EIGHT HUNDRED EIGHTY EIGHT VOLUME WAS HEAVY AT ABOUT THREE HUNDRED FOUR POINT SIX MILLION SHARES DOWN FROM ABOUT THREE HUNDRED TWENTY SIX POINT ONE MILLION SHARES TRADED TUESDAY THE TREASURY'S THIRTY YEAR BOND ROSE NEARLY A ONE HALF POINT PUSHING ITS YIELD DOWN TO SIX POINT THREE OH PERCENT THE DOW JONES UTILITIES AVERAGE WHICH IS SEEN BY MANY AS A LEADING INDICATOR FOR BOTH THE STOCK AND BOND MARKETS RALLIED THREE POINT FOUR NINE OR ONE POINT SIX OH PERCENT TO TWO HUNDRED TWENTY ONE POINT FOUR SIX THE AVERAGE HAD HIT BACK TO BACK FIFTY TWO WEEK LOWS FRIDAY AND MONDAY BEFORE EDGING HIGHER TUESDAY THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX YESTERDAY ROSE TWO POINT TWO EIGHT OR ZERO POINT FOUR EIGHT PERCENT TO FOUR HUNDRED SEVENTY THREE POINT TWO OH THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED ONE POINT ONE THREE OR ZERO POINT FOUR THREE PERCENT TO TWO HUNDRED SIXTY TWO POINT TWO SIX THE NASDAQ COMPOSITE INDEX GAINED TWO POINT FOUR ONE OR ZERO POINT THREE ONE PERCENT TO SEVEN HUNDRED EIGHTY EIGHT POINT EIGHT OH THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX CLIMBED ONE POINT ONE FIVE OR ZERO POINT TWO FOUR PERCENT TO FOUR HUNDRED EIGHTY ONE POINT SEVEN FOUR ADVANCED MICRO DEVICES ADDED FIVE EIGHTHS TO TWENTY AND FIVE EIGHTHS AFTER COMPAQ COMPUTER SAID IT WILL BEGIN PURCHASING MICROCHIPS FROM THE SUNNYVALE CALIFORNIA COMPANY ADVANCED MICRO'S CHIPS TYPICALLY HAVE BEEN USED ONLY IN LOWER PRICED PERSONAL COMPUTERS WHILE HOUSTON BASED COMPAQ TRADITIONALLY HAS USED JUST INTEL PROCESSORS IN NASDAQ TRADING INTEL LOST ONE AND THREE EIGHTHS TO SIXTY THREE AND FIVE EIGHTHS ON MARKET LEADING VOLUME OF SEVEN POINT TWO MILLION SHARES COMPAQ SLID TWO AND ONE EIGHTH TO EIGHTY ONE AND ONE EIGHTH ON THE BIG BOARD EVEN THOUGH IT ALSO REPORTED STRONGER THAN EXPECTED FOURTH QUARTER EARNINGS OF ONE DOLLAR AND SEVENTY FOUR CENTS A SHARE UP FROM ONE DOLLAR AND ELEVEN CENTS A SHARE A YEAR AGO PHILIP MORRIS GAINED ONE AND THREE EIGHTHS TO FIFTY NINE AND ONE QUARTER ALTHOUGH THE GIANT NEW YORK FOOD AND TOBACCO COMPANY'S FOURTH QUARTER EARNINGS PLUMMETED TO THIRTY EIGHT CENTS A SHARE FROM ONE DOLLAR AND THIRTY FOUR CENTS A YEAR AGO THEY LARGELY MET EXPECTATIONS THE LATEST QUARTER INCLUDED A FIFTY TWO CENT A SHARE RESTRUCTURING CHARGE SEPARATELY MERRILL LYNCH AND COMPANY UPGRADED A RATING ON THE STOCK SPECTRUM INFORMATION SKIDDED SEVEN SIXTEENTHS TO FIVE AND SEVEN EIGHTHS ON NASDAQ THE MANHASSET N. Y. COMPANY CONFIRMED RUMORS REPORTED BY C. N. B. C. CABLE TELEVISION TUESDAY THAT THE COMPANY WAS THE SUBJECT OF A SECURITIES AND EXCHANGE COMMISSION PROBE THE STOCK FELL ONE TUESDAY BETHLEHEM STEEL ADDED ONE AND FIVE EIGHTHS TO TWENTY THREE AND ONE QUARTER AFTER IT POSTED FOURTH QUARTER EARNINGS FROM OPERATIONS OF FORTY SEVEN MILLION DOLLARS REVERSING A YEAR AGO LOSS THE BETHLEHEM PENNSYLVANIA COMPANY'S SHARES SLUMPED TWO AND ONE EIGHTH TUESDAY ON PROFIT TAKING AHEAD OF THE EARNINGS REPORT SCOTT PAPER RALLIED TWO AND ONE EIGHTH TO FORTY FIVE AND ONE HALF AFTER THE PHILADELPHIA COMPANY SAID IT WILL CUT TWENTY FIVE PERCENT OF ITS WORK FORCE IT HAD A STEEP FOURTH QUARTER LOSS THAT INCLUDED A CHARGE FOR ITS RESTRUCTURING EFFORTS BORDEN ADDED THREE QUARTERS TO FIFTEEN AND ONE QUARTER THE NEW YORK FOOD COMPANY POSTED A FOURTH QUARTER LOSS THAT INCLUDED SEVERAL CHARGES AND HALVED ITS DIVIDEND TO SEVEN POINT FIVE CENTS HOWEVER IT EXPECTS A MODEST PROFIT IN THE FIRST QUARTER MERRILL LYNCH UPGRADED A RATING INTERNATIONAL BUSINESS MACHINES SLIPPED ONE AND SEVEN EIGHTHS TO FIFTY SIX AND THREE EIGHTHS THE STOCK HAD A WILD DAY TUESDAY TUMBLING MORE THAN THREE IMMEDIATELY AFTER REPORTING ITS FOURTH QUARTER EARNINGS BUT RECOVERING LATE IN THE SESSION FOR A LOSS OF JUST THREE EIGHTHS ON THE DAY BALL FELL TWO TO TWENTY SIX THE MUNCIE INDIANA COMPANY POSTED A FOURTH QUARTER LOSS AND CUT ITS DIVIDEND TO FIFTEEN CENTS FROM THIRTY ONE CENTS EDWARD NICOSKI A MARKET ANALYST AT PIPER JAFFRAY SAID THE POSITIVE ACTION IN BONDS AND UTILITIES EASED SOME INVESTORS' WORRIES THAT INTEREST RATES COULD CLIMB THE IMPROVEMENT IN UTILITIES THOUGH WASN'T ENOUGH TO CONVINCE ANALYSTS THAT INVESTORS' RECENT WORRIES ABOUT THE MARKET ARE OVER PIPER'S MR. NICOSKI SAID HE WILL NEED TO SEE MORE EVIDENCE THAT THE MARKET'S STRENGTH IS BROADENING BEFORE HE WILL BE CONVINCED THE MARKET CAN MOVE DECIDEDLY HIGHER WHILE THE DOW JONES INDUSTRIAL AVERAGE IS UP ABOUT FOUR PERCENT YEAR TO DATE AIDED BY SURGING CYCLICALS BROADER INDEXES HAVE RISEN ONLY ABOUT ONE PERCENT QUOTE THE DOW INDUSTRIAL AVERAGE IS GOING TO NEW HIGHS AND A LOT OF INVESTORS ARE SHRUGGING THEIR SHOULDERS AND WONDERING WHY THEY AREN'T MAKING MONEY QUOTE HE SAID STOCKS WERE PUSHED BACK AND FORTH SEVERAL TIMES DURING THE DAY BY PROGRAM TRADING RECENT VOLATILITY SUCH AS YESTERDAY'S PARTLY CAUSED BY PROGRAMS IS ANOTHER SIGN THE MARKET IS WEAKENING SAID EUGENE PERONI A TECHNICAL ANALYST AT JANNEY MONTGOMERY SCOTT THE CONSISTENT BUYING THAT PUSHED STOCKS STEADILY HIGHER EARLIER THIS MONTH HE SAID HAS BEEN REPLACED BY INTERMITTENT BUYING AND SELLING AND MORE OF A ZIGZAG PATTERN FOR THE MARKET ROY MARSDEN HERETOFORE BEST KNOWN TO T. V. AUDIENCES AS INSPECTOR DALGLIESH TAKES ON A RATHER LESS EXALTED ROLE IN THE NEW TWO PART SHERLOCK HOLMES QUOTE MYSTERY QUOTE AIRING TONIGHT MR. MARSDEN PORTRAYS ONE JOHN STOCKTON WHO HAS COME TO A VILLAGE ONCE INHABITED BY HIS ANCESTOR AN EIGHTEENTH CENTURY NOBLEMAN SUSPECTED OF BEING A VAMPIRE WHAT WITH THAT AND THE RASH OF MYSTERIOUS DEATHS THAT FOLLOW CONTACTS WITH STOCKTON THE TOWNSPEOPLE AREN'T SANGUINE ABOUT HAVING HIM AROUND THE LOCAL CLERGYMAN PLAYED BY A MASTERFUL MAURICE DENHAM WISELY SEEKS THE COUNSEL OF SHERLOCK HOLMES JEREMY BRETT WHO PROMPTLY WARNS THAT HUMANKIND'S NEED TO FIND SCAPEGOATS FOR ITS FEARS MAY BE AT THE ROOT OF THE TROUBLE THIS COMPLICATING SPIRIT OF RATIONALITY ADDS RATHER A NICE DIMENSION TO THE DRAMA WHICH ROLLS ALONG ON ITS BLOODILY SUGGESTIVE WAY WITH A FULL COMPLEMENT OF PIERCED THROATS AND HOWLS IN THE NIGHT FROM ATLANTA'S GEORGIA DOME THE EVER HOPEFUL BILLS BATTLE THE COWBOYS PREEMPTING ALL OTHER ACTIVITIES IN MILLIONS OF LIVING ROOMS BUT NOT MINE THE CREATIVE TEAM BEHIND THE SIMPSONS HAS PRODUCED ANOTHER ANIMATED COMEDY SERIES THIS ONE ABOUT JAY A TUBBY NEW YORK FILM CRITIC WHO DOES MOVIE REVIEWS ON CABLE T. V. IN LAST WEEK'S OPENING SHOW THE LOVELORN JAY PERSUADED HIMSELF THAT THE BEAUTIFUL ACTRESS WHO HAD THROWN HERSELF AT HIM HAD DONE SO OUT OF PURE DESIRE FOR HIS ROUND AND BALDING SELF AND NOT BECAUSE SHE WANTED A GOOD REVIEW HE NATURALLY LEARNS OTHERWISE BUT DON'T COUNT JAY OUT THE FORMER EXECUTIVE PRODUCERS OF THE SIMPSONS KNOW HOW TO MAKE HEROES OF LOSERS AS WITNESS THE STARDOM OF ONE HOMER SIMPSON IT'S TOO EARLY TO TELL HOW THE SERIES WILL TURN OUT BUT GIVEN THE OPENING EPISODE'S SENDUP OF MOVIE CRITIC GENE SHALIT TO SAY NOTHING OF THE ACTION IN A FANCY NIGHTCLUB CALLED THE WEALTHY JACKASS THE SIGNS ARE PROPITIOUS THIS HALLMARK HALL OF FAME PRESENTATION BASED ON AN ANNE TYLER NOVEL STARS JAMES GARNER AND JOANNE WOODWARD AS A MARRIED TEAM TRYING TO GET THROUGH THE LITTLE AND BIG TROUBLES OF LIFE MS. WOODWARD PLAYS MAGGIE A WOMAN OF VAGUE MIND STRONG WILL AND CHEERY ECCENTRICITY WHILE MR. GARNER TAKES THE ROLE OF HUSBAND IRA A HARD MINDED SKEPTIC THE PLEASURE OF WATCHING THESE TWO MASTERS AT WORK IS SO CONSIDERABLE AND CONSISTENT IT HARDLY MATTERS THAT THE SCRIPT IS SLOW GOING AT LEAST AT FIRST IF IT CAN BE SAID TO GO AT ALL EVEN PEOPLE WE ARE MANY WHO LOATHE FILMS ABOUT CHEERY ECCENTRICS OR WHO ARE UNLIKELY TO ACQUIRE A TASTE FOR ANNE TYLER'S FICTION WILL LIKE THIS DOUBLE STAR TURN THIS SIX HOUR SERIES ON THE SPORTS INDUSTRY PROVIDES IN THE WORDS OF AN OLD SONG A LITTLE BIT ABOUT A LOT OF THINGS OVERALL THERE IS MUCH THAT IS INTERESTING THOUGH IT TAKES A WHILE TO GROW ACCUSTOMED TO THE WEIGHT OF ITS AFFECTATIONS BOTH MUSICAL AND PHOTOGRAPHIC THE FIRST SEGMENTS ESPECIALLY COULD BE MISTAKEN FOR MUSIC VIDEOS BUT HANG ON THE SECOND NIGHT OF THIS SERIES BRINGS AN EPISODE ABOUT HUSTLING AGENTS LOOKING FOR PROMISING PLAYERS THE CAMERAS FOLLOW ONE HARD WORKING REP AND HIS CLIENT AND HIS CLIENT'S LARGE FAMILY THROUGH AN AGONIZING WAIT TO SEE IF THE YOUNG PLAYER MAKES THE FIRST ROUND OF THE N. F. L. DRAFT THIS IS AN ENTIRELY MEMORABLE SEQUENCE IF ONE NEVER AGAIN EQUALLED IN THE SEGMENTS THAT FOLLOW THESE INCLUDE ONE ABOUT BASEBALL OWNERS STARRING THE CINCINNATI REDS SALTY OLD MARGE SCHOTT WHO IS LIKE A LOT OF OTHER FAMOUS OLD SALTS A LOT LESS INTERESTING THAN ADVERTISED GEORGE FUGELSANG WAS NAMED PRESIDENT OF DRESDNER SECURITIES U. S. A. INCORPORATED A UNIT OF THE GERMAN BANK EFFECTIVE FEBRUARY FIRST DRESDNER SECURITIES PREVIOUSLY WAS KNOWN AS A. B. D. SECURITIES CORPORATION MR. FUGELSANG CURRENTLY IS A MANAGING DIRECTOR WITH MORGAN STANLEY AND COMPANY IN LONDON IN ADDITION GERHARD EBERSTADT THE BANK'S MANAGEMENT BOARD MEMBER RESPONSIBLE FOR SECURITIES OPERATIONS WILL SUCCEED WOLFGANG ROELLER AS CHAIRMAN OF DRESDNER SECURITIES U. S. A. CHEVRON CORPORATION'S FOURTH QUARTER NET INCOME DIDN'T INCLUDE CHARGES FOR THE PLANNED SALE OF TWO REFINERIES THOSE CHARGES WERE TAKEN IN THE SECOND QUARTER AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT THE CHARGES WERE INCLUDED IN FOURTH QUARTER RESULTS BILL CLINTON WANTS CONGRESS TO QUOTE GUARANTEE EVERY AMERICAN PRIVATE HEALTH INSURANCE THAT CAN NEVER BE TAKEN AWAY QUOTE FLOURISHING HIS PEN HE ASSERTS HE'LL VETO ANYTHING LESS WE'RE IMPRESSED IMPRESSED NOT MERELY WITH THE BREATHTAKING SCOPE OF MR. CLINTON'S GRAND PLAN FOR AMERICAN HEALTH CARE BUT ALSO WITH THE MOSES DOWN FROM THE MOUNT QUALITY OF HIS PRONOUNCEMENTS ON THIS SUBJECT WITH WHOM HAS BILL CLINTON BEEN COMMUNING WHAT IS THE SOURCE OF THIS PRESIDENT'S EXPANSIVE SENSE OF DIKTAT LET'S UNDERSTAND SOMETHING HERE NO ONE IN AMERICA IS BEING DENIED MEDICAL TREATMENT THERE IS SIMPLY NO RELEVANT INCIDENCE OF SICK PEOPLE BEING TOLD BY DOCTORS TO GO OUT INTO THE STREET TO LIE DOWN AND DIE WERE THAT TRUE SIXTY MINUTES WOULD HAVE SCANDALIZED US WITH IT YEARS AGO THE POOR ALREADY HAVE MEDICAL INSURANCE THROUGH MEDICAID AND THE ELDERLY THROUGH MEDICARE AND ANY SENTIENT AMERICAN HAS KNOWN FOR YEARS THAT FOR PEOPLE WITHOUT INSURANCE CARE GETS PROVIDED FIRST AND WORRIES ABOUT PAYMENT COME LATER AS INDEED MR. CLINTON'S OWN EXAMPLES SHOW THE ISSUE IS HOW BEST TO PAY FOR THIS CARE IN A WAY THAT BOTH FAIRLY SPREADS THE FINANCIAL RISKS AND CREATES INCENTIVES FOR EFFICIENCY THE NOTION THAT THIS CAN BE DONE ONLY THROUGH GUARANTEED UNIVERSAL AND PRIVATE INSURANCE IF INDEED THOSE NOTIONS CAN BE COMBINED AT ALL IS SIMPLY ARBITRARY AND CAPRICIOUS IN RECENT YEARS THE COSTS OF CARE FOR THE UNINSURED AND INDEED FOR BELOW COST REIMBURSEMENT FOR MEDICAID AND MEDICARE HAVE BEEN SHIFTED ONTO ALL THE REST OF US LARGELY WE'D ADD WITH THE PUBLIC'S SOCIALLY CONSCIOUS ASSENT BUT AS THE INEFFICIENCIES AND DISTORTIONS OF THIS SHIFTING BECAME TOO COSTLY THE SYSTEM HAD LATELY BEGUN TO RESPOND AND REORDER ITSELF H. M. O.S AND MANAGED CARE ARE BUT TWO EXAMPLES THE YEAR OVER YEAR INCREASES IN MEDICAL COSTS HAS BEEN DECLINING RATHER SMARTLY YET MR. CLINTON AND THE PLAN'S MOVING SPIRIT HIS WIFE HILLARY ARRIVED IN WASHINGTON WITH THEIR FORTY THREE PERCENT MANDATE AND ANNOUNCED THAT THE AMERICAN HEALTH CARE SYSTEM FOURTEEN PERCENT OF GROSS DOMESTIC PRODUCT WAS IN CRISIS NOT JUST SOME BLEEDING CORNER OF THE SYSTEM SUCH AS PORTABILITY OR PRE EXISTING CONDITIONS OR MEDICAID BUT THE WHOLE SYSTEM THE HOSPITALS THE PHYSICIANS THE DRUG COMPANIES THE INSURANCE COMPANIES EMPLOYERS ALL ARE IN THE CRISIS AND SO ALL OF IT MUST BE REASSEMBLED BY HILLARY CLINTON AND BY IRA MAGAZINER BOLD IS INDEED A WORD FOR IT THOUGH WE THINK OUR ARBITRARY AND CAPRICIOUS FITS BETTER MR. CLINTON'S HEALTH CRISIS REMINDS US OF JIMMY CARTER'S ENERGY CRISIS WE WERE TOLD THE EARTH'S CRUST WAS RUNNING OUT OF HYDROCARBONS AND NOW WE'RE TOLD THAT THE BEST HEALTH CARE IN HISTORY IS KILLING US SO WASHINGTON SETS OUT TO REORDER HUGE HUNKS OF THE ECONOMY WHILE THE ADMINISTRATION REFUSES TO ADMIT IT ITS PROPOSAL IS A SYSTEM OF PRICE CONTROL THE ONES THAT GAVE US GASOLINE LINES TO PUT OUR OBJECTION BLUNTLY BILL CLINTON'S DIKTAT IS GOING TO LOUSE UP YOUR HEALTH CARE WHY IS BILL CLINTON INSISTING ON ENGULFING ALL THE REST OF US IN HIS ATTEMPT TO COMMAND THE HEALTH CARE WAVES TO REARRANGE THEMSELVES THAT ANSWER WE'RE CONVINCED IS PRETTY SECULAR IT'S ABOUT POLITICS THE CLINTON BRAIN TRUST AS IT HAS MADE EXPLICIT IN ARTICLES SPEECHES AND T. V. APPEARANCES THINKS ITS CENTRAL TASK IS TO RECAPTURE THE LOYALTY OF THE MIDDLE CLASS WHICH CONCLUDED THAT DEMOCRATIC LIBERALISM WASN'T ABOUT THEM THE STRATEGY NOW IS TO GIVE THE MIDDLE CLASS A NEW FEDERAL ENTITLEMENT THAT WORD IS OUT OF FAVOR HOWEVER SO HERE IT'S CALLED A GUARANTEE OR MORE MAJESTICALLY A RIGHT WHETHER THIS WILL WORK EVEN AS POLITICS IS OPEN TO QUESTION POLLING ON THE CLINTON PLAN SUGGESTS STRONGLY THAT THE MORE ALREADY INSURED PEOPLE LEARN ABOUT THE PLAN THE MORE THEY ARE LIKELY TO OPPOSE IT THE ECONOMIC RECOVERY ALSO TAKES THE EDGE OFF THE RECESSION'S PORTABILITY SCARE AND RECALL THAT AS THE PUBLIC CAUGHT ON TO THE CARTER ENERGY PROGRAM IT FELL APART ONE PIECE AT A TIME WHAT THE CLINTON STRATEGY DOES HAVE GOING FOR IT IS BILL CLINTON AS THE STATE OF THE UNION RHETORIC MADE CLEAR THIS IS A NEW KIND OF PRESIDENCY MR. CLINTON DOESN'T MERELY APPEAL TO THE ELECTORATE HE TRIES TO ENVELOP IT LISTENING TO THE DEPTH OF FEELING WITH WHICH MR. CLINTON DESCRIBED WHAT WE CAN DO ON EVERY IMAGINABLE FRONT ONE HAD THE SENSE THAT THIS ISN'T JUST POLITICS THIS IS GOING TO BE A RELATIONSHIP WE HAVE IT SEEMS ENTERED THE AGE OF THE CO DEPENDENCY PRESIDENCY QUOTE BUT WHAT WE DO HERE IS REALLY BEGINNING TO CHANGE LIVES THOUGH WE ARE MAKING A DIFFERENCE OUR WORK HAS JUST BEGUN MANY AMERICANS STILL HAVEN'T FELT THE IMPACT OF WHAT WE'VE DONE LET US RESOLVE TO CONTINUE THE JOURNEY OF RENEWAL I WANT TO SAY SOMETHING TO EVERYBODY HERE WHO CARES ABOUT THIS ISSUE EVERYBODY CAN CONTRIBUTE SOMETHING IF WE WANT TO SOLVE THE HEALTH CARE CRISIS IT SOUNDS APPEALING AND CAPTIVATING AND MORE THAN A LITTLE TOUGH TO BELIEVE OUR ADVICE IS KEEP A GOOD GRIP ON YOUR WALLET AND IF ANYTHING LIKE THE CLINTON PLAN EVER PASSES DON'T GET SICK JOHN RALLIS A SENIOR VICE PRESIDENT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS FOAM PRODUCTS MANUFACTURER MR. RALLIS FIFTY SIX YEARS OLD FORMERLY SERVED AS CHAIRMAN AND CHIEF EXECUTIVE OF GREAT WESTERN FOAM PRODUCTS CORPORATION PRIOR TO ITS ACQUISITION BY FOAMEX LAST YEAR HE WILL SUCCEED WILLIAM H. BUNDY FIFTY THREE WHO WILL CONTINUE AS A SENIOR MANAGER AND BOARD MEMBER IN ADDITION FOAMEX CHAIRMAN MARSHALL S. COGAN FIFTY SIX WILL ASSUME THE NEWLY CREATED TITLE OF CHIEF EXECUTIVE JAPAN'S STOCK MARKET LATCHED ON TO RUMORS OF A SPEEDY END TO THE NATION'S CURRENT POLITICAL TURMOIL BUT THERE WAS NO PUBLIC EVIDENCE OF ANY SETTLEMENT THE RULING COALITION STUNNED BY THE PARLIAMENTARY SETBACK LAST WEEK OF ITS POLITICAL REFORM BILLS DRAFTED A COMPROMISE PROPOSAL WEDNESDAY TO DRAW SUPPORT FROM THE OPPOSITION LIBERAL DEMOCRATIC PARTY A SPECIAL COMMITTEE DESIGNED TO DISCUSS THE PLAN HOWEVER ADJOURNED AFTER JUST FIVE MINUTES WITH NO NEGOTIATION ON THE ISSUES THE COMMITTEE IS SCHEDULED TO MEET AGAIN THURSDAY BUT L. D. P. LEADERS AREN'T MAKING ANY ENCOURAGING NOISES QUOTE WE HAVEN'T REACHED A CONSENSUS QUOTE WITHIN THE PARTY YOSHIRO MORI L. D. P. SECRETARY GENERAL SAID IN THE POLITICAL REFORM NEGOTIATIONS THE COALITION'S COMPROMISE PROPOSAL INCLUDED WATERING DOWN RESTRICTIONS ON CORPORATE CAMPAIGN CONTRIBUTIONS AND CHANGING THE COMPOSITION OF THE NEW ELECTORAL RULES TO BE MORE FAVORABLE TO THE L. D. P. ECONOMIC POLICY AND OTHER MATTERS HAVE GROUND TO A HALT IN THIS WEEK'S POLITICAL REFORM STRUGGLE IF THE COALITION FAILS TO REVIVE THE LEGISLATION BY THE END OF THE PARLIAMENTARY SESSION SATURDAY PRIME MINISTER MORIHIRO HOSOKAWA MAY RESIGN OR MAY CALL SNAP ELECTIONS SUCH FEARS TRIGGERED A SHARP DROP IN THE TOKYO MARKET EARLIER THIS WEEK HOURS BEFORE WEDNESDAY'S FAILED COMMITTEE MEETING RUMORS SWEPT THE STOCK MARKET THAT A PRO REFORM FACTION OF THE L. D. P. WAS READY TO CUT A DEAL FOREIGN BUYING IN PARTICULAR LED THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX TO CLOSE AT NINETEEN THOUSAND ONE HUNDRED THIRTY EIGHT POINT TWO ONE UP FOUR HUNDRED EIGHTY NINE POINT EIGHT FIVE POINTS OR TWO POINT SIX PERCENT STOCK PRICES CLIMBED BUOYED BY THE PROSPECT THAT INTEREST RATES ARE LIKELY TO STAY STEADY BOND PRICES ROSE AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE ROSE TWELVE POINT SIX SIX POINTS TO THREE THOUSAND NINE HUNDRED EIGHT POINT OH OH IN HEAVY TRADING STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX JUMPED TWO POINT TWO EIGHT TO FOUR HUNDRED SEVENTY THREE POINT TWO OH AND THE NASDAQ COMPOSITE INDEX GAINED TWO POINT FOUR ONE TO SEVEN HUNDRED EIGHTY EIGHT POINT EIGHT OH JEFFREY APPLEGATE CHIEF INVESTMENT STRATEGIST AT C. S. FIRST BOSTON SAID STOCKS STARTED RALLYING ON THE PROSPECT THAT INTEREST RATES WERE LIKELY TO REMAIN STABLE OR EVEN MOVE LOWER ONE OF THE REASONS INVESTORS WERE SO HOPEFUL ABOUT RATES IS THAT THE DOW JONES UTILITY AVERAGE WHICH SOME ANALYSTS CONSIDER A LEADING INDICATOR OF INTEREST RATES AND STOCK PRICES SURGED AFTER SLUMPING IN RECENT WEEKS THE INDEX OF FIFTEEN UTILITY STOCKS SOARED THREE POINT FOUR NINE POINTS TO TWO HUNDRED TWENTY ONE POINT FOUR SIX QUOTE THE FEELING IS THAT INTEREST RATES ARE NOT GOING TO THE MOON BECAUSE THE UTILITY AVERAGE HAD A STRONG DAY QUOTE SAID MR. APPLEGATE ADDING THAT EXPECTATIONS THAT RATES WOULD STAY LOW ENCOURAGED MANY INVESTORS TO SNAP UP FINANCIAL STOCKS SUCH AS BANKS WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED ONE POINT OH THREE TO ONE HUNDRED FOURTEEN POINT FOUR FOUR STOCK PRICES ROSE VOLUME TOTALED THREE HUNDRED FOUR POINT SIX MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND ONE HUNDRED SEVENTY TWO ISSUES ROSE AND EIGHT HUNDRED EIGHTY EIGHT FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE GAINED NEARLY ONE HALF A POINT OR ALMOST FIVE DOLLARS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT THREE OH PERCENT THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN FOUR FIVE OH MARKS AND ONE HUNDRED TEN POINT OH FIVE YEN COMPARED WITH ONE POINT SEVEN FOUR NINE SIX MARKS AND ONE HUNDRED TEN POINT NINE OH YEN TUESDAY TREASURY SECRETARY LLOYD BENTSEN SUGGESTED THE CLINTON ADMINISTRATION IS WILLING TO MODIFY ITS HEALTHCARE PLAN TO MAKE IT EASIER FOR COMPANIES TO INSURE WORKERS THEMSELVES INSTEAD OF BEING FORCED INTO REGIONAL INSURANCE POOLS THE POOLS CALLED HEALTH ALLIANCES WOULD BRING BUSINESSES AND INDIVIDUALS TOGETHER TO BUY HEALTH COVERAGE THE ALLIANCES WHICH WOULD BE DESIGNED TO SPREAD INSURANCE RISK AND INCREASE CONSUMER BARGAINING POWER HAVE BECOME ONE OF THE MOST CONTROVERSIAL PARTS OF THE PRESIDENT'S HEALTH CARE PROPOSAL UNDER THE PRESIDENT'S PLAN ANY EMPLOYER WITH FEWER THAN FIVE THOUSAND WORKERS WOULD BE REQUIRED TO JOIN AN ALLIANCE AND PAY IT ON BEHALF OF EACH WORKER QUOTE YOU THINK THE FIVE THOUSAND EMPLOYEE THRESHOLD FOR JOINING REGIONAL ALLIANCES IS TOO HIGH YOU WANT IT REDUCED TO FIVE HUNDRED MR. BENSTEN TOLD A CONVENTION OF THE NATIONAL MANUFACTURERS ASSOCIATION WE HEAR YOU WE'RE WILLING TO DISCUSS THIS AND OTHER DETAILS OF OUR PLAN THE WHITE HOUSE LATER CAUTIONED AGAINST READING TOO MUCH INTO MR. BENTSEN'S REMARKS BUT OFFICIALS PRIVATELY EXPECT THAT THEY WILL HAVE TO GIVE UP SOMETHING ON ALLIANCES MR. BENTSEN'S CONCILIATORY TONE DOVETAILS WITH EFFORTS BY SENIOR DEMOCRATS TO NARROW DIFFERENCES WITH INDUSTRY AND BUILD SUPPORT IN CONGRESS FOR THE CORE OF THE PRESIDENT'S PLAN ALLIANCES ARE ONE OF THE AREAS WHERE THERE IS A FAIR AMOUNT OF ROOM FOR MOVEMENT SAID HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL LET'S PUT IT THIS WAY ADDED THE MICHIGAN DEMOCRAT QUOTE I DON'T BELIEVE IN ALLIANCES LIKE I DO THE HOLY TRINITY QUOTE THE ADMINISTRATION SOUGHT TO DEVISE ALLIANCES THAT WOULD BE LARGE ENOUGH BOTH TO SHARE COMMUNITY RISKS AND TO BARGAIN EFFECTIVELY WITH PROVIDERS FOR LOWER COST CARE MANY OF THE ADJUSTMENTS UNDER CONSIDERATION SEEK TO ACHIEVE THE SAME RESULT ONE OPTION FOR EXAMPLE WOULD PERMIT SEVERAL COMPANIES THAT TOGETHER HAVE MORE THAN THE THRESHOLD NUMBER OF EMPLOYEES TO FORM THEIR OWN SELF INSURANCE SCHEMES LIKE LARGER CORPORATIONS MR. BENTSEN'S COMMENTS CAME AS CONGRESSIONAL BARGAINING OVER THE HEALTH PLAN BEGAN IN EARNEST IN HIS STATE OF THE UNION ADDRESS TUESDAY NIGHT MR. CLINTON WARNED THAT HE WOULD VETO HEALTH LEGISLATION THAT FAILS TO GUARANTEE MEDICAL COVERAGE FOR ALL AMERICANS DEMOCRATS ARGUED THIS SHOULD BE SEEN NOT SO MUCH AS A THREAT AS AN INVITATION TO SEEK ACCOMMODATIONS ON OTHER ASPECTS OF THE PLAN I THINK EVERYTHING ELSE IS ON THE TABLE IF YOU CONCEDE THAT THE ULTIMATE CORE BILL MUST INCLUDE GUARANTEED HEALTH INSURANCE FOR ALL AMERICANS SAID HOUSE SPEAKER THOMAS FOLEY D. WASHINGTON HE SUGGESTED FOR INSTANCE THAT AS LONG AS UNIVERSAL COVERAGE IS ASSURED SOME ALTERNATIVE APPROACH MIGHT BE FOUND TO THE ADMINISTRATION'S RECOMMENDATION THAT THE PLAN BE FINANCED BY REQUIRING ALL EMPLOYERS TO BUY HEALTH INSURANCE FOR THEIR WORKERS THE COMING HEALTH FIGHT WILL BE PLAYED OUT FIRST IN MR. DINGELL'S ENERGY AND COMMERCE COMMITTEE THE PANEL'S TWENTY SEVEN TO SEVENTEEN SPLIT BETWEEN DEMOCRATS AND REPUBLICANS MAKES IT A BETTER MEASURE OF THE HOUSE THAN THE WAYS AND MEANS COMMITTEE WHICH IS MORE STACKED TO THE DEMOCRATS' ADVANTAGE AND MR. DINGELL WHOSE FATHER CHAMPIONED HEALTH INSURANCE AS A CONGRESSMAN BRINGS BOTH A DEEP COMMITMENT TO THE ISSUE AND PERSONAL ROOTS IN THE INDUSTRIAL MIDWEST THE HOME OF A NUMBER OF REPUBLICANS WHOSE VOTES HE'LL NEED THE PRESIDENT AND HIS HEALTH ADVISERS MET YESTERDAY MORNING WITH THE HOUSE DEMOCRATIC LEADERSHIP TO DISCUSS STRATEGY AMONG THOSE WHO ATTENDED WERE MR. DINGELL HOUSE LABOR AND EDUCATION COMMITTEE CHAIRMAN WILLIAM FORD D. MICHIGAN AND HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI D. ILLINOIS ALTHOUGH THE IMMEDIATE WHITE HOUSE FOCUS YESTERDAY WAS ON DEMOCRATS REPUBLICANS HOLD IMMENSE POWER PARTICULARLY IN THE SENATE MINDFUL OF THIS SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN D. N. Y. HELD A MEETING FOR MEMBERS OF HIS PANEL FROM BOTH PARTIES TO DISCUSS PROCEDURES FOR HANDLING THE LEGISLATION THE TENTATIVE SCHEDULE SET OUT AT THE MEETING ANTICIPATES WEEKS OF HEARINGS RUNNING UNTIL LATE APRIL THAT MEANS LEGISLATION WON'T ACTUALLY BE DRAFTED UNTIL MAY IN THE SENATE AT LEAST THERE IS A SENSE THE ALLIANCES CAN SURVIVE ONLY IF THEY ARE ESTABLISHED ON A VOLUNTARY BASIS BUT MORE BROADLY A CORE GROUP OF REPUBLICAN MODERATES REMAIN COMMITTED TO MORE SUBSTANTIAL REFORMS THAN THE INCREMENTAL APPROACH FAVORED BY MANY CONSERVATIVES IN THE HOUSE I THINK THERE'S A REAL FINANCIAL PROBLEM OUT THERE FOR INDIVIDUALS FOR THE COMPANIES FOR THE NATION SAID SENATOR JOHN CHAFEE R. R. I. REPRESENTATIVE STEVE GUNDERSON THE TYPE OF REPUBLICAN MIDWESTERNER WHOSE VOTE THE PRESIDENT'S TEAM NEEDS DESCRIBED A MEETING WITH FARMERS IN HIS WISCONSIN DISTRICT WHO FACE A MAJOR INCREASE IN MEDICAL INSURANCE PREMIUMS GUYS LIKE STEVE GUNDERSON CAN'T STAND UP AND SAY THERE'S NOT A PROBLEM SAID THE REPUBLICAN YOU TELL MY CONSTITUENTS THAT STRATUS COMPUTER INCORPORATED MEETING ANALYSTS' EXPECTATIONS REPORTED A FOURTH QUARTER LOSS OF SEVENTEEN POINT ONE MILLION DOLLARS OR SEVENTY TWO CENTS A SHARE INCLUDING A ONE TIME CHARGE OF THIRTY SIX POINT TWO MILLION DOLLARS OR ONE DOLLAR AND FIFTY FOUR CENTS A SHARE IN CONNECTION WITH RECENT ACQUISITIONS A YEAR EARLIER THE MARLBORO MASSACHUSETTS MAKER OF FAULT TOLERANT COMPUTERS HAD EARNINGS OF SEVENTEEN POINT TWO MILLION DOLLARS OR SEVENTY THREE CENTS A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING STRATUS WAS QUOTED AT TWENTY NINE POINT SIX TWO FIVE DOLLARS OFF TWELVE POINT FIVE CENTS THERE'S NO QUESTION THAT THE BUFFALO BILLS WILL BE FACING A DAUNTING OPPONENT WHEN THEY MEET THE DALLAS COWBOYS IN SUPER BOWL EIGHTEEN AT SIX EIGHTEEN P. M. THIS SUNDAY IN ATLANTA BUT THE BILLS WHO HAVE LOST THREE CONSECUTIVE SUPER BOWLS MAY FACE AN EVEN TOUGHER CHALLENGE WHEN THEY SPRINT OFF THE FIELD AFTER THE FINAL WHISTLE AND SEEK ENDORSEMENT DEALS ON MADISON AVENUE ACCORDING TO MARKETING EXPERTS ADVERTISERS ARE BECOMING INCREASINGLY RELUCTANT TO SIGN UP PROFESSIONAL ATHLETES AS PRODUCT SPOKESMEN THE PRIMARY REASON THE OFF FIELD BEHAVIOR OF ATHLETES IS GETTING TOO UNPREDICTABLE SOME MARKETING OFFICIALS SAY SO CALLED MORAL CLAUSES IN ENDORSEMENT CONTRACTS HAVE GROWN QUOTE ELABORATE QUOTE AND IT IS NOW EASIER FOR CLIENTS TO BAIL OUT ON A CELEBRITY ANOTHER CONCERN FOR ADVERTISERS IS WHETHER AN ATHLETE IS PERCEIVED AS A WINNER OR A LOSER EVERYONE IS SCARED SAYS NOVA LANKTREE PRESIDENT OF LANKTREE SPORTS A CHICAGO COMPANY THAT PAIRS SPORTS CELEBRITIES TO COMMERCIALS AND TELEVISION PROJECTS THERE IS TREPIDATION IN THE AD INDUSTRY MOST RECENTLY ADVERTISERS WERE SHAKEN BY THE ALLEGED INVOLVEMENT OF PEOPLE CLOSE TO SKATER TONYA HARDING IN A BRUTAL ATTACK ON RIVAL NANCY KERRIGAN MS. KERRIGAN CONTINUES TO RECEIVE OFFERS FOR PRODUCT ENDORSEMENTS BUT ADVERTISERS AREN'T INTERESTED IN MS. HARDING ACCORDING TO MS. LANKTREE SO THE BILLS AND THEIR MOST IMPORTANT PLAYER QUARTERBACK JIM KELLY FACE A SKEPTICAL ADVERTISING INDUSTRY AND WOULD SEEM TO HAVE LITTLE CHANCE OF SNARING LUCRATIVE CONTRACTS IF THEY TURN UP AS LOSERS FOR THE FOURTH STRAIGHT YEAR LAST YEAR THE COWBOYS TROUNCED THE BILLS FIFTY TWO TO SEVENTEEN THE CHANCES INCREASE GREATLY IF THE BILLS WIN SAYS DAN KELLY YOUNGER BROTHER AND PRESIDENT OF JIM KELLY ENTERPRISES IN BUFFALO I DON'T THINK IT SHOULD MATTER WHETHER THE BILLS WIN OR LOSE BUT IT DOES WHEN IT COMES TO TALKING ABOUT ENDORSEMENTS I WOULD THINK THAT HE WOULD GET HIS SHARE OF PRODUCT ENDORSEMENTS IF THEY WIN JIM KELLY'S AD FOR NUPRIN FROM BRISTOL MYERS SQUIBB HASN'T BEEN USED IN ABOUT THREE YEARS ACCORDING TO LISA SCHERER VICE PRESIDENT OF MARKETING AT JIM KELLY ENTERPRISES NUPRIN SHE SAYS OPTED TO STEER THE CAMPAIGN TO OLDER PROFESSIONAL TENNIS PLAYERS INCLUDING JIMMY CONNORS MR. KELLY ENDORSES SKYBOX INTERNATIONAL A TRADING CARD COMPANY AND APEX ONE AN APPAREL COMPANY IN PISCATAWAY N. J. OTHER THAN MR. KELLY THE BILLS PLAYER WITH THE GREATEST COMMERCIAL POTENTIAL IS BRUCE SMITH WHO IS CURRENTLY APPEARING IN COMICAL ADS FOR WAVY LAY A NEW PRODUCT FROM PEPSICO'S FRITO LAY DIVISION HE IS ALSO IN BIZARRE AND CONTROVERSIAL ADS FOR NIKE CO STARRING DENNIS HOPPER WHO SNIFFS MR. SMITH'S SNEAKERS BOB DORFMAN A SENIOR COPYWRITER AT FOOTE CONE AND BELDING'S SAN FRANCISCO OFFICE SAYS MR. SMITH IS ONE OF THE FEW BILLS QUOTE WHO CAN RISE ABOVE A FOURTH STRAIGHT SUPER BOWL DEFEAT QUOTE ODDLY MR. DORFMAN SAYS ANOTHER POSSIBLE CONTENDER FOR ENDORSEMENTS IS MARV LEVY THE BILLS' COACH ARMED WITH A MASTER'S DEGREE IN ENGLISH FROM HARVARD MR. DORFMAN SAYS MR. LEVY HAS THE POTENTIAL TO ENDORSE HIGH BROW PRODUCTS SUCH AS COMPUTERS OR ENCYCLOPEDIAS ENDORSEMENTS OFFER ATHLETES A MUCH GREATER FINANCIAL RETURN THAN SIMPLY WINNING THE GAME FOR EXAMPLE THE SUPER BOWL WINNERS EACH RECEIVE THIRTY EIGHT THOUSAND DOLLARS EACH LOSING PLAYER GETS TWENTY THREE THOUSAND FIVE HUNDRED DOLLARS BUT MARKETING EXPERTS ESTIMATE THAT ATHLETES CAN EARN FIFTY THOUSAND DOLLARS BY APPEARING IN A SINGLE FAST FOOD AD AND HAVING THEIR FACE ON A BOX OF WHEATIES FROM GENERAL MILLS COULD PAY UPWARD OF TWO HUNDRED THOUSAND DOLLARS THE CHANCES FOR ENDORSEMENTS ARE HIGHER WITH THE COWBOYS STARTING WITH ITS QUARTERBACK TROY AIKMAN WHOSE HANDSOME LOOKS REMIND SOME OF JOE MONTANA FORMER QUARTERBACK FOR THE SAN FRANCISCO FORTY NINE ERS AND NOW FOR THE KANSAS CITY CHIEFS IN FACT MR. DORFMAN SAYS MR. AIKMAN HAS THE LOOKS THE TALENT AND THE DOMINANT TEAM TO BECOME THE NEXT JOE MONTANA OF ENDORSEMENTS MR. DORFMAN'S ONLY RECOMMENDATION GIVE THE LAD SOME CHARISMA LESSONS ALREADY THOUGH MR. AIKMAN HAS WORKED FOR NIKE AND WHEATIES AND LAST YEAR HE WAS THE PLAYER WHO SAID HE WAS GOING TO DISNEY WORLD POST SUPER BOWL EMMITT SMITH A COWBOYS RUNNING BACK COULD BE HEADED FOR DISNEY WORLD THIS YEAR IF THE COWBOYS PULL OFF A SECOND DEFEAT OF THE BILLS PREDICTS MR. DORFMAN HE HAS APPEARED IN ADS FOR REEBOK STARTER AND COCA COLA ANOTHER MEMBER OF THE COWBOYS ORGANIZATION WITH ENORMOUS POTENTIAL IS FLAMBOYANT AND BOASTFUL COACH JIMMY JOHNSON WITH HIS PERFECTLY WHITE TEETH PERFECTLY COIFFED HAIR AND PERFECTLY ROUND SHAPE MR. JOHNSON COULD BECOME A LARGER THAN LIFE CHARACTER SAYS MR. DORFMAN NOT UNLIKE FORMER CHICAGO BEARS COACH MIKE DITKA AND FORMER OAKLAND RAIDERS COACH AND C. B. S. SPORTS COMMENTATOR JOHN MADDEN MR. JOHNSON IS CURRENTLY SEEN IN TELEVISION ADS FOR APEX ONE AND IS QUITE AMUSING DRIVING A LARGE CONVERTIBLE AND PICKING UP COWBOYS PLAYERS WHO ARE HITCHHIKING MS. LANKTREE FOR ONE IS LESS ENTHUSIASTIC ABOUT THE COWBOYS HOWEVER THERE IS NO REAL TELEVISION SUPERSTAR ON THE TEAM SHE SAYS ALTHOUGH SOME OF THE PLAYERS MAY DO WELL IN REGIONAL ADVERTISING SHE SAYS IT ISN'T LIKELY THEY WILL REAP BIG FINANCIAL BENEFITS FROM NATIONAL ADS OF COURSE SOMETIMES IT DOESN'T MATTER WHETHER YOU'RE PERCEIVED AS A WINNER OR LOSER TAKE CHEVY CHASE FOR INSTANCE OF COURSE HE ISN'T AN ATHLETE BUT HE WILL MAKE AN APPEARANCE IN THIS YEAR'S SUPER BOWL CLUSTER OF ADS FOR DORITOS TORTILLA THINS FROM FRITO LAY IN THE MIDDLE OF THE SPOT MR. CHASE IS INFORMED BY A GROUP OF EXECUTIVES WEARING SUNGLASSES THAT HE IS CANCELED AUDIENCE RESEARCH ON MR. CHASE IS LOUSY HE IS TOLD THE ADS ARE A CLEAR REFERENCE TO HIS SHORT LIVED LATE NIGHT TALK SHOW ON FOX LAST YEAR ONE IMPORTANT DIFFERENCE BETWEEN MR. CHASE AND ANY MEMBER OF THE BUFFALO BILLS MS. LANKTREE IMAGINES THE LAST THING THE BILLS WOULD WANT IS TO BE CAST IN A LOSER ROLE SIMILAR TO MR. CHASE'S N. E. C. TECHNOLOGIES BOXBORO MASSACHUSETTS HAS PUT ITS ESTIMATED THIRTY FIVE MILLION DOLLAR COMPUTER ADVERTISING ACCOUNT INTO REVIEW THE INCUMBENT D. D. B. NEEDHAM NEW YORK A UNIT OF OMNICOM GROUP IS COMPETING TO HOLD ONTO THE BUSINESS BUT THE AGENCY WILL FIND IT HAS PLENTY OF COMPETITION QUOTE WE'RE INVITING AGENCIES FROM COAST TO COAST TO PARTICIPATE QUOTE AN N. E. C. SPOKESMAN SAID CONSULTANT WILLIAM WEILBACHER OF DENNIS MASSACHUSETTS IS CONDUCTING THE SEARCH N. E. C. IS LOOKING AROUND LESS THAN THREE MONTHS AFTER ONE OF ITS BIGGEST RIVALS INTERNATIONAL BUSINESS MACHINES CORPORATION HIRED OMNICOM AGENCIES TO CREATE ITS PERSONAL COMPUTER ADVERTISING MERKLEY NEWMAN HARTY THE OMNICOM START UP SHOP WON THE U. S. PORTION OF THE I. B. M. BUSINESS WHILE D. D. B.'S PARIS OFFICE WON THE EUROPEAN PART SOME EXECUTIVES SAID N. E. C. A UNIT OF N. E. C. CORPORATION OF JAPAN DECIDED I. B. M.'S ACCOUNT WAS TOO CLOSE FOR COMFORT D. D. B. DECLINED TO COMMENT THE N. E. C. SPOKESMAN SAID THE REVIEW'S PURPOSE WAS TO ENSURE THE COMPANY IS MAXIMIZING ITS ADVERTISING INVESTMENT THE N. E. C. REVIEW COMES JUST AS ANOTHER BIG COMPUTER FIRM DIGITAL EQUIPMENT CORPORATION OF MAYNARD MASSACHUSETTS IS STUDYING A POSSIBLE CONSOLIDATION ACCORDING TO DAVID SIMLER DIGITAL'S ACTING CORPORATE ADVERTISING MANAGER DIGITAL CURRENTLY SPLITS ITS ESTIMATED THIRTY MILLION DOLLARS IN U. S. ADVERTISING AMONG SIX AGENCIES INCLUDING YOUNG AND RUBICAM NEW YORK WHICH WAS HIRED IN NOVEMBER TO CREATE PERSONAL COMPUTER ADS CONSULTING FIRM MORGAN ANDERSON IS EXPECTED TO OVERSEE THE INTERNAL REVIEW CHRYSLER CORPORATION SAID IT IS HOOKING UP WITH INTERACTIVE NETWORK FOR A TEST DURING THE SUPER BOWL OF TEASER ADS FOR THE DODGE AND PLYMOUTH NEON CHRYSLER PLANS TO AIR THREE SPOTS FOR THE NEON DURING THE N. B. C. NETWORK'S SUPER BOWL BROADCAST SUNDAY THE COMPANY IS HOOKING UP WITH INTERACTIVE NETWORK TO FIND OUT WHETHER VIEWERS PAID ATTENTION TO THEM INTERACTIVE NETWORK SUBSCRIBERS USE WIRELESS HAND HELD DEVICES TO PLAY ALONG WITH REGULAR TELEVISION BROADCASTS DURING THE SUPER BOWL THEY WILL BE ABLE TO PREDICT PLAYS AND COMPETE WITH EXPERT CALLS WHEN THE GAME IS OVER CHRYSLER WILL QUIZ THE SUBSCRIBERS ABOUT FEATURES PRICE AND DEALER LOCATIONS OF THE NEON INFORMATION CONTAINED IN THE PRECEDING NEON ADS INTERACTIVE NETWORK IS BASED IN SUNNYVALE CALIFORNIA IT DOESN'T DISCLOSE THE NUMBER OF SUBSCRIBERS BUT EXECUTIVES ESTIMATE THEM AT ABOUT FIVE THOUSAND LOCATED IN SAN FRANCISCO SACRAMENTO AND CHICAGO N. C. R. CORPORATION IN A BOW TO ITS ACQUISITION BY AMERICAN TELEPHONE AND TELEGRAPH COMPANY CHANGED ITS NAME TO A. T. AND T. GLOBAL INFORMATION SOLUTIONS JERRE STEAD CHIEF EXECUTIVE OFFICER OF THE DAYTON OHIO COMPANY THAT A. T. AND T. ACQUIRED IN A HOSTILE TAKEOVER IN NINETEEN NINETY ONE SAID IT WAS TIME TO DROP THE N. C. R. NAME TO BETTER REFLECT ITS MOVES INTO COMPUTING INFORMATION NETWORKING AND SYSTEMS INTEGRATION HE SAID THAT A. T. AND T.'S SURVEY OF CLIENTS SHOWED THAT THEY STILL IDENTIFIED THE N. C. R. NAME TOO MUCH WITH THE FORMER CASH REGISTER BUSINESS OF THE COMPANY WHICH WAS STARTED LATE IN THE NINETEENTH CENTURY AS THE NATIONAL CASH REGISTER COMPANY COMPAQ COMPUTER CORPORATION SAID ITS NET INCOME JUMPED SEVENTY PERCENT IN THE FOURTH QUARTER ON A CRUSH OF HOLIDAY PERSONAL COMPUTER SALES THE NATION'S THIRD LARGEST PERSONAL COMPUTER MAKER REPORTED NET INCOME OF ONE HUNDRED FIFTY ONE MILLION DOLLARS OR ONE DOLLAR AND SEVENTY FOUR CENTS A SHARE COMPARED WITH EIGHTY NINE MILLION DOLLARS OR ONE DOLLAR AND ELEVEN CENTS A SHARE A YEAR EARLIER SALES SURGED TO TWO POINT TWO BILLION DOLLARS FROM ONE POINT FOUR BILLION DOLLARS THOUGH COMPAQ'S RESULTS CAME IN ABOUT TWENTY CENTS A SHARE ABOVE MOST ANALYSTS' ESTIMATES ITS STOCK SANK TWO POINT ONE TWO FIVE DOLLARS OR TWO POINT SIX PERCENT TO EIGHTY ONE POINT ONE TWO FIVE DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TRADERS ATTRIBUTED THE DROP TO PROFIT TAKING AND SCATTERED WORRIES THAT COMPAQ'S DECISION TO BUY COMPUTER CHIPS FROM ADVANCED MICRO DEVICES INCORPORATED AS WELL AS INTEL CORPORATION COULD COST IT SOME CORPORATE CUSTOMERS BUT ANALYSTS GENERALLY PRAISED COMPAQ'S RESULTS AND SAID THEY SAW NO EVIDENCE THAT THE COMPANY'S ZOOMING GROWTH WAS ABOUT TO SLOW QUOTE COMPAQ REALLY SEEMS TO BE BREAKING AWAY FROM THE PACK QUOTE SAID TODD D. BAKAR A TECHNOLOGY ANALYST AT HAMBRECHT AND QUIST IN SAN FRANCISCO STILL COMPAQ WAS HARDLY ALONE IN ITS IMPRESSIVE FOURTH QUARTER SHOWING A. S. T. RESEARCH INCORPORATED AND INTERNATIONAL BUSINESS MACHINES CORPORATION ALSO REPORTED STRONG YEAR END P. C. NUMBERS PRIMARILY BECAUSE OF A SURGE OF BUSINESS FROM CONSUMERS BUYING COMPUTERS FOR THE HOME DARYL J. WHITE COMPAQ'S CHIEF FINANCIAL OFFICER SAID THE COMPANY'S PROLINEA AND PRESARIO LINES TURNED IN PARTICULARLY IMPRESSIVE RESULTS DURING THE QUARTER MR. WHITE SAID COMPAQ WILL FOCUS THIS YEAR ON BUILDING UP ITS INVENTORY IN ANTICIPATION OF CONTINUED STRONG DEMAND COMPAQ SHIPPED THREE POINT ONE MILLION UNITS LAST YEAR UP NINETY EIGHT PERCENT FROM THE PREVIOUS YEAR BALL CORPORATION HAD A LOSS OF FIFTY EIGHT POINT SEVEN MILLION DOLLARS OR TWO DOLLARS AND TWO CENTS A SHARE FOR THE FOURTH QUARTER REFLECTING A FIFTY EIGHT MILLION DOLLAR CHARGE FOR CERTAIN RESTRUCTURING ACTIONS SEPARATELY THE COMPANY CUT ITS QUARTERLY DIVIDEND TO FIFTEEN CENTS A SHARE FROM THIRTY ONE CENTS A SHARE SAYING THE NEW RATE IS CONSISTENT WITH CHANGES IN ITS CAPITALIZATION AS A RESULT OF LAST YEAR'S SPINOFF OF ALLTRISTA CORPORATION IN THE FOURTH QUARTER OF NINETEEN NINETY TWO THE MAKER OF METAL AND GLASS CONTAINERS EARNED ELEVEN MILLION DOLLARS OR THIRTY NINE CENTS A SHARE SALES ROSE SIX POINT THREE PERCENT TO FIVE HUNDRED FIFTY SEVEN POINT SEVEN MILLION DOLLARS FROM FIVE HUNDRED TWENTY FOUR POINT EIGHT MILLION DOLLARS BALL SAID THE RESTRUCTURING ACTIONS INCLUDE PLANT CLOSINGS AND CONSOLIDATIONS PRIMARILY WITHIN ITS PACKAGING OPERATIONS THE CHARGE COVERS EMPLOYEE SEVERANCE AND RELOCATION COSTS WRITE DOWNS OF FIXED ASSETS AND EQUIPMENT COSTS ASSOCIATED WITH THE ELIMINATION OF CERTAIN PRODUCT LINES AS WELL AS COSTS ASSOCIATED WITH THE PREVIOUSLY ANNOUNCED CLOSING OF BALL'S ASHEVILLE N. C. GLASS FACILITY THE COMPANY SAID THE RESTRUCTURING PROVISION WILL HELP IMPROVE ITS OVERALL COMPETITIVE POSITION IN ITS CORE PACKAGING AND AEROSPACE MARKET BY HELPING TO ELIMINATE EXCESS CAPACITY REDUCE COSTS AND TRIM UNPROFITABLE PRODUCT LINES AS A RESULT THE COMPANY SAID IT EXPECTS TO REDUCE THE NUMBER OF OPERATING LOCATIONS BY TEN PERCENT AND ITS WORK FORCE BY EIGHT PERCENT FOR ALL OF NINETEEN NINETY THREE BALL HAD A LOSS OF SIXTY FIVE POINT ONE MILLION DOLLARS OR TWO DOLLARS AND THIRTY EIGHT CENTS A SHARE INCLUDING A THIRTY FOUR POINT SEVEN MILLION DOLLAR CHARGE FOR AN ACCOUNTING CHANGE AND SIXTY SIX MILLION DOLLARS IN RESTRUCTURING CHARGES IN NINETEEN NINETY TWO THE COMPANY EARNED SIXTY SEVEN POINT ONE MILLION DOLLARS OR TWO DOLLARS AND FORTY FIVE CENTS A SHARE SALES FOR NINETEEN NINETY THREE WERE TWO POINT FOUR FOUR BILLION DOLLARS COMPARED WITH TWO POINT ONE EIGHT BILLION DOLLARS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BALL'S SHARES FELL TWO DOLLARS OR SEVEN POINT ONE PERCENT TO TWENTY SIX DOLLARS GLENDALE FEDERAL BANK POSTED A FISCAL SECOND QUARTER NET LOSS OF THIRTY NINE POINT EIGHT MILLION DOLLARS SURPRISING ANALYSTS AND INCREASING THE LIKELIHOOD THAT THE TROUBLED THRIFT WILL BE ACQUIRED IN THE NEAR FUTURE THE LOSS EQUIVALENT TO ONE DOLLAR AND TWENTY SIX CENTS A SHARE WAS LESS SEVERE THAN THE YEAR EARLIER LOSS OF SEVENTY NINE POINT FOUR MILLION DOLLARS OR TWO DOLLARS AND THIRTY TWO CENTS A SHARE BUT DEEPER THAN WHAT ANALYSTS HAD ANTICIPATED EXPECTATIONS HAD RANGED FROM A NET LOSS OF TWENTY CENTS TO ONE DOLLAR AND TWO CENTS A SHARE FOR THE PERIOD ENDED DECEMBER THIRTY FIRST THE COMPANY SAID THAT PER SHARE COMPARISONS TO PRIOR PERIODS ARE MISLEADING BECAUSE OF A RECENT RECAPITALIZATION AND CHANGE IN ITS CORPORATE STRUCTURE GLENDALE WHICH HAS STRUGGLED FOR SEVERAL YEARS TO AVOID A GOVERNMENT SEIZURE RESULTING FROM ITS HUGE PILE OF BAD ASSETS NOW FACES DECLINING PROFITABILITY ON LOANS AND INVESTMENTS THAT HAVEN'T SOURED MEANWHILE AT MANY CALIFORNIA FINANCIAL INSTITUTIONS UNLIKE AT GLENDALE RISING LOAN BALANCES HAVE CONTRIBUTED TO PROFIT GAINS NET INTEREST INCOME PLUNGED TWENTY TWO PERCENT TO SIXTY SIX POINT EIGHT MILLION DOLLARS FROM EIGHTY FIVE POINT SEVEN MILLION DOLLARS A YEAR EARLIER REFLECTING A LOWER SPREAD OR THE DIFFERENCE BETWEEN WHAT THE THRIFT PAYS FOR DEPOSITS AND WHAT IT CHARGES FOR LOANS ITS SPREAD FELL TO A RELATIVELY THIN ONE POINT EIGHT SIX PERCENT FROM TWO POINT FOUR THREE PERCENT FURTHER ALTHOUGH TOTAL PROBLEM ASSETS PEAKED LAST FEBRUARY NONPAYING LOANS HAVE OMINOUSLY STARTED TO CREEP UP AGAIN RISING TO SIX HUNDRED FORTY SIX POINT EIGHT MILLION DOLLARS FROM SIX HUNDRED THIRTY POINT FOUR MILLION DOLLARS AT THE END OF THE FISCAL FIRST QUARTER GLENDALE CITED INCREASED DELINQUENCIES IN NONRESIDENTIAL AND APARTMENT LOANS THE BANK'S LOAN LOSS PROVISION WAS THIRTY SEVEN POINT FIVE MILLION DOLLARS DOWN FROM FORTY FOUR POINT NINE MILLION DOLLARS IN THE FISCAL FIRST QUARTER AND SEVENTY SEVEN POINT TWO MILLION DOLLARS A YEAR EARLIER IN NEW YORK STOCK EXCHANGE TRADING THE COMPANY'S STOCK CLOSED AT SEVEN DOLLARS AND FIFTY CENTS DOWN TWENTY FIVE CENTS DOLORES D. WHARTON SIXTY SIX YEARS OLD WAS NAMED A DIRECTOR OF THE COMMUNICATIONS INFORMATION AND ENTERTAINMENT DISTRIBUTION SERVICES COMPANY FILLING A VACANCY ON THE FIFTEEN MEMBER BOARD MS. WHARTON IS PRESIDENT OF THE FUND FOR CORPORATE INITIATIVES INCORPORATED IN NEW YORK A NEW STUDY SUPPORTS THE NOTION THAT A QUOTE WAIT AND SEE QUOTE STRATEGY IS AS VALID AS SURGERY OR RADIATION FOR TREATMENT OF EARLY STAGE PROSTATE CANCER THE REPORT IS THE LATEST EFFORT TO ADDRESS A GROWING DILEMMA IN THE MANAGEMENT OF THE DISEASE WHICH IS EXPECTED TO KILL THIRTY EIGHT THOUSAND U. S. MEN THIS YEAR A NEW DIAGNOSTIC TEST AND AGGRESSIVE SCREENING CAMPAIGNS ARE HELPING TO INCREASE EARLY DETECTION AND TREATMENT OF PROSTATE CANCER BUT THERE IS LITTLE STATISTICAL EVIDENCE THAT SUCH EFFORTS PROLONG SURVIVAL SINCE AGGRESSIVE TREATMENTS ESPECIALLY SURGICAL REMOVAL OF THE PROSTATE ARE COSTLY AND CARRY SIGNIFICANT RISKS AND SINCE DOCTORS CAN'T PREDICT RELIABLY WHICH PATIENTS ARE LIKELY TO BENEFIT FROM SURGERY OR WHICH COULD BE HARMED BY A CONSERVATIVE WATCHFUL WAITING APPROACH UROLOGISTS ARE EMBROILED IN CONTROVERSY OVER THE BEST STRATEGIES FOR TREATING EARLY STAGE DISEASE THE MESSAGE OF OUR STUDY IS THAT WATCHFUL WAITING IS A REASONABLE ALTERNATIVE TO SURGERY AND RADIATION SAID GERALD W. CHODAK PROFESSOR OF SURGERY AT THE UNIVERSITY OF CHICAGO AND DIRECTOR OF THE PROSTATE AND UROLOGY CENTER AT WEISS MEMORIAL HOSPITAL IN CHICAGO BUT HE WARNED THAT DOCTORS AND PATIENTS SHOULDN'T READ THE FINDINGS AS A BROAD RECOMMENDATION AGAINST AGGRESSIVE TREATMENT DECIDING WHAT IS THE BEST APPROACH DEPENDS TO A GREAT EXTENT ON THE PREFERENCES OF THE INDIVIDUAL PATIENT DOCTOR CHODAK SAID THIS IS ABOUT TRADE OFFS DOCTOR CHODAK IS LEAD AUTHOR OF THE REPORT WHICH APPEARS IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE BUT THE REPORT DREW SHARP CRITICISM FROM WILLIAM CATALONA CHIEF OF UROLOGY AT WASHINGTON UNIVERSITY MEDICAL SCHOOL SAINT LOUIS WHOSE RESEARCH HAS LED TO WIDESPREAD USE OF A BLOOD TEST KNOWN AS THE P. S. A. TEST TO DETECT PROSTATE CANCER IN ITS EARLY STAGES THESE RESEARCHERS ARE PRESENTING A TERRIBLE PICTURE OF ACTIVE TREATMENT AND A ROSY PICTURE OF WATCHFUL WAITING AND THEY'RE MISLEADING THE PUBLIC DOCTOR CATALONA DECLARED AS A RESULT OF THE P. S. A. TEST MORE THAN TWO HUNDRED THOUSAND U. S. MEN ARE EXPECTED TO BE DIAGNOSED WITH PROSTATE CANCER THIS YEAR MANY OF THEM WHEN THE DISEASE IS CONFINED TO THE PROSTATE AND CONSIDERED TREATABLE QUOTE THESE MEN WILL HAVE A BRIEF WINDOW OF OPPORTUNITY TO GET CURED QUOTE THROUGH SURGERY HE SAID IF THEY GET CURED THEY'RE CLEAN FOR THE REST OF THEIR LIVES HE ALSO MAINTAINED THAT THE SUBJECTS IN THE STUDY WERE DOMINATED BY OLDER MEN WITH LOW GRADE TUMORS THE KIND OF MEN FOR WHOM WATCHFUL WAITING IS ALREADY OFTEN RECOMMENDED THEY AREN'T REPRESENTATIVE OF A CHANGING POPULATION OF PATIENTS WITH PROSTATE CANCER HE SAID THE STUDY IS BASED ON AN ANALYSIS OF SIX OTHER REPORTS INVOLVING EIGHT HUNDRED TWENTY EIGHT MEN FROM ISRAEL SCOTLAND SWEDEN AND THE U. S. ALL WERE BELIEVED TO HAVE CANCER CONFINED TO THE PROSTATE GLAND AND NONE WERE TREATED INITIALLY THOUGH MANY WERE GIVEN HORMONE TREATMENTS LATER IN THE COURSE OF THEIR DISEASE DOCTOR CHODAK AND HIS COLLEAGUES FOUND THAT EIGHTY SEVEN PERCENT OF THOSE CONSIDERED TO HAVE EITHER GRADE ONE OR GRADE TWO TUMORS CONSIDERED LESS AGGRESSIVE WHEN THEY WERE DIAGNOSED WERE STILL ALIVE TEN YEARS LATER JUST THIRTY FOUR PERCENT OF MEN WITH GRADE THREE TUMORS SURVIVED WITH THE DISEASE FOR TEN YEARS THE FIGURES DON'T INCLUDE MEN WHO DIED OF OTHER CAUSES DOCTOR CHODAK SAID SOME OTHER STUDIES INDICATE THAT TEN YEAR SURVIVAL RATES FOR SURGERY AND RADIATION ARE ABOUT NINETY FOUR PERCENT BUT JOSEPH E. OESTERLING A UROLOGIST AT THE MAYO CLINIC ROCHESTER MINNESOTA SAID THAT A VALID COMPARISON WITH THE RESULTS OF DOCTOR CHODAK'S STUDY ISN'T POSSIBLE BECAUSE OF DIFFERENCES IN STUDY METHODS AND GROUPS OF PATIENTS A STUDY PUBLISHED LAST YEAR SHOWED THAT SURGICAL REMOVAL OF THE PROSTATE AS A CANCER TREATMENT INCREASED SIXFOLD BETWEEN NINETEEN EIGHTY FOUR AND NINETEEN NINETY PROVOKING CONCERN THAT MANY PATIENTS WERE RISKING SUCH COMPLICATIONS AS IMPOTENCE AND INCONTINENCE WITH LIMITED EVIDENCE OF BENEFIT DOCTOR OESTERLING SAID INCREASED USE OF THE PROCEDURE KNOWN AS RADICAL PROSTATECTOMY PARTLY REFLECTS NEW SURGICAL TECHNIQUES THAT CAN REDUCE CHANCES OF COMPLICATIONS HE SAID THE NEW STUDY PROVIDES MORE EVIDENCE TO SUPPORT CONSERVATIVE APPROACHES FOR OLDER MEN OR THOSE WITH OTHER DEBILITATING ILLNESSES FOR PEOPLE THAT HAVE LESS THAN TEN YEARS TO LIVE WATCHFUL WAITING COULD GIVE YOU RESULTS SIMILAR TO WHAT YOU WOULD GET WITH RADIATION OR SURGERY DOCTOR OESTERLING SAID BUT DOCTOR CHODAK MAINTAINED THAT FEW UROLOGISTS FEEL COMFORTABLE RECOMMENDING WATCHFUL WAITING EVEN IN SUCH CASES BECAUSE PREVIOUS STUDIES HAVE BEEN FLAWED AND BECAUSE THERE AREN'T ANY RELIABLE DATA COMPARING THE RESULTS OF SURGERY RADIATION AND WATCHFUL WAITING HEAD TO HEAD AMONG PATIENTS WITH SIMILAR LEVELS OF DISEASE HE ARGUED THAT THE STUDY SHOULD GIVE DOCTORS CONFIDENCE THAT SIMPLY MONITORING THE COURSE OF DISEASE IS A VALID APPROACH FOR MANY PATIENTS THE REPORT ALSO FOUND THAT CANCER HAD SPREAD BEYOND THE PROSTATE GLAND AFTER TEN YEARS IN NINETEEN PERCENT OF PATIENTS DIAGNOSED WITH A GRADE ONE TUMOR AND FORTY TWO PERCENT OF THOSE WITH A GRADE TWO TUMOR THOSE RESULTS CLEARLY DEMONSTRATE THAT PROSTATE CANCER IS A PROGRESSIVE DISEASE WHEN MANAGED CONSERVATIVELY THE RESEARCHERS WROTE DOCTOR CHODAK SAID BOTH PATIENTS AND THEIR DOCTORS CAN WEIGH SUCH CHANCES IN CONSIDERING A CHOICE OF TREATMENT WE CAN'T PREDICT FOR SURE WHO WILL DO WELL WITH WATCHFUL WAITING AND WHO WILL DO POORLY HE SAID EACH INDIVIDUAL HAS A DILEMMA WHAT IS HE WILLING TO RISK IN ORDER TO GAIN A BENEFIT WHILE THE FINDINGS DON'T POINT CLEARLY TO ONE OPTION OR ANOTHER HE ADDED THEY QUOTE WILL MAKE IT EASIER TO COUNSEL PATIENTS ABOUT WHAT HAPPENS TO THOSE WHO CHOOSE WATCHFUL WAITING QUOTE BENTSEN INDICATED WHITE HOUSE FLEXIBILITY ON REGIONAL HEALTH ALLIANCES THE TREASURY SECRETARY SUGGESTED THAT THE CLINTON ADMINISTRATION IS WILLING TO MODIFY ITS HEALTH CARE PLAN IN ORDER TO MAKE IT EASIER FOR COMPANIES TO INSURE WORKERS THEMSELVES INSTEAD OF BEING FORCED INTO REGIONAL INSURANCE POOLS THE POOLS WHICH ARE CALLED HEALTH ALLIANCES ARE INTENDED TO BRING BUSINESSES AND INDIVIDUALS TOGETHER TO PURCHASE HEALTH COVERAGE THE ALLIANCES HAVE BECOME ONE OF THE MOST CONTROVERSIAL ASPECTS OF THE PRESIDENT'S HEALTH CARE PROPOSAL BENTSEN'S CONCILIATORY TONE COINCIDES WITH EFFORTS BY SENIOR DEMOCRATS TO NARROW DIFFERENCES WITH INDUSTRY AND BUILD SUPPORT IN CONGRESS FOR THE CORE OF THE PRESIDENT'S PLAN RUSSIA'S FORMER FINANCE CHIEF DENOUNCED PRESIDENT YELTSIN WHO HAD ASKED THE REFORMER TO STAY IN THE CABINET SAYING GOVERNMENT POLICIES COULD PROVOKE ECONOMIC COLLAPSE AND SOCIAL UNREST BY REVIVING A SOVIETSTYLE ECONOMY FYODOROV'S DEPARTURE WAS A BOOST FOR PRIME MINISTER CHERNOMYRDIN THE RUSSIAN PROSECUTOR GENERAL BEGAN A CRIMINAL INVESTIGATION INTO ALLEGED WARMONGERING BY AN EXTREME NATIONALIST POLITICIAN ZHIRINOVSKY WHO LEADS ONE OF THE BIGGEST BLOCS IN PARLIAMENT THE PROBE REPORTEDLY WAS LAUNCHED IN RESPONSE TO COMPLAINTS THAT ZHIRINOVSKY HAD BEEN SPREADING WAR PROPAGANDA HE DENIED THE REPORTS UKRAINE CAN EXPECT TO RECEIVE A U. S. COMMITMENT TO DOUBLE ECONOMIC AID TO THE KIEV GOVERNMENT WASHINGTON OFFICIALS DISCLOSED AFTER TALKS WITH A DELEGATION OF UKRAINIAN OFFICIALS SEEKING HELP IN STABILIZING THE EX SOVIET REPUBLIC'S ECONOMY U. S. OFFICIALS SAID THE CURRENT COMMITMENT OF ONE HUNDRED FIFTY FIVE MILLION DOLLARS WILL DOUBLE BELARUS'S SOVIET ERA PARLIAMENT OUSTED THE COUNTRY'S LIBERAL LEADER STANISLAV SHUSHKEVICH HIS OUSTER LINKED TO CORRUPTION CHARGES BUT PLAINLY INTENDED AS A REBUFF TO MARKET REFORMS AND TO A FOREIGN POLICY ALIGNED WITH RUSSIA CAME TWO WEEKS AFTER STANISLAV RECEIVED CLINTON'S BACKING DURING HIS TOUR OF THE FORMER SOVIET UNION THE U. S. REJECTED A RUSSIAN PROPOSAL FOR A U. N. SECURITY COUNCIL MEETING ON BOSNIA AND DISMISSED A FRENCH PLAN TO PRESSURE MUSLIMS INTO A PEACE DEAL CALLING IT QUOTE A STRANGE MORAL CALCULUS QUOTE THE OFFICIAL COMMENTS CAME ONE DAY AFTER SECRETARY OF STATE CHRISTOPHER RETURNED FROM TALKS WITH FRENCH OFFICIALS PRESSING FOR URGENT MEASURES CIVILIANS MOBBED A U. N. FOOD AID CONVOY AND WOUNDED SIX OF ITS BOSNIAN POLICE ESCORTS IN A GRIM DEMONSTRATION OF ESCALATING LAWLESSNESS DRIVEN BY HUNGER AND DESPERATION THE OFFICERS SOME OF WHOM SUFFERED BULLET WOUNDS WERE ATTACKED AS THE TEN TRUCK CONVOY ENTERED TICICI A MUSLIM VILLAGE NORTHWEST OF SARAJEVO A WAIT AND SEE STRATEGY IS A REASONABLE ALTERNATIVE TO SURGERY OR RADIATION FOR TREATMENT OF EARLY STAGE PROSTATE CANCER ACCORDING TO A NEW STUDY UROLOGISTS HAVE ARGUED OVER THE BEST STRATEGIES FOR TREATING THE EARLY STAGE DISEASE BECAUSE AGGRESSIVE TREATMENTS ARE COSTLY AND CARRY SIGNIFICANT RISKS LYME DISEASE RESEARCHERS DEVELOPED A GENE BASED DIAGNOSTIC TEST THAT MIGHT SOLVE PROBLEMS CAUSED BY FREQUENT MISDIAGNOSIS OF THE ILLNESS THE RESEARCH TEAM WAS LED BY THE DOCTOR WHO IN NINETEEN SEVENTY SIX DISCOVERED THE BACTERIUM THAT CAUSES THE DISEASE WHICH PRODUCES FLULIKE SYMPTOMS AND CAN LEAD TO CHRONIC ARTHRITIS A YOUNG MAN LUNGED AT BRITAIN'S PRINCE CHARLES AND FIRED TWO BLANK SHOTS FROM A STARTER'S PISTOL DURING AN OUTDOOR CEREMONY IN SYDNEY MARKING AUSTRALIA'S NATIONAL DAY THE ASSAILANT A KOREAN STUDENT WHO SAID HE WAS UPSET ABOUT THE PLIGHT OF CAMBODIAN BOAT PEOPLE WAS IMMEDIATELY ARRESTED THE PRINCE WAS UNHARMED THE HOUSE SPEAKER DECLARED THERE ISN'T ANY NEED FOR CONGRESSIONAL HEARINGS ON CLINTON'S PAST REAL ESTATE DEALINGS IN ARKANSAS FOLEY'S COMMENTS CAME A DAY AFTER HOUSE MINORITY LEADER MICHEL CALLED FOR HEARINGS INTO THE PRESIDENT'S WHITEWATER INVESTMENT BUT BACKED OFF HIS PRIOR REQUEST THAT THE HOUSE FORM A SPECIAL COMMITTEE JORDAN'S KING HUSSEIN VOICED HIS READINESS TO MEET WITH ISRAEL'S RABIN BEFORE TOO LONG AND ADDED THAT SUCH A MEETING COULD TAKE PLACE BEFORE FULL PEACE WAS ESTABLISHED IN CAIRO MEANWHILE SIGNS OF OPTIMISM EMERGED FROM P. L. O. ISRAELI NEGOTIATIONS ON PLANS FOR PALESTINIAN AUTONOMY IN THE OCCUPIED TERRITORIES THE YEN'S CONTINUING STRENGTH AND A SLIDE BY THE SWISS FRANC MOBILIZED CURRENCY MARKETS YESTERDAY THE DOLLAR WAS ABANDONED TO DRIFT QUIETLY LOWER LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FOUR FIVE OH MARKS DOWN FROM ONE POINT SEVEN FOUR NINE SIX MARKS LATE TUESDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED TEN POINT OH FIVE YEN OFF FROM ONE HUNDRED TEN POINT NINE OH YEN STERLING WAS TRADING UNCHANGED AT ONE POINT FOUR NINE FOUR FIVE DOLLARS ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED NINE POINT SIX FIVE YEN AND AT ONE POINT SEVEN FOUR FIVE OH MARKS THERE WAS LITTLE INTEREST WEDNESDAY IN THE DOLLAR WHICH GENERATED ALMOST NO REACTION WHEN IT FELL THROUGH A LONGSTANDING SUPPORT LEVEL AT ONE POINT SEVEN FOUR EIGHT OH MARKS BUT EVEN THE U. S. CURRENCY LOOKED TOUGH AGAINST THE SWISS FRANC WITH THE DOLLAR UP TO ONE POINT FOUR SEVEN ONE OH FRANCS LATE IN NEW YORK COMPARED WITH ONE POINT FOUR SIX SEVEN OH FRANCS LATE TUESDAY THE SWISS CURRENCY USUALLY BOUGHT AS A HAVEN FROM PROBLEMS ELSEWHERE IN EUROPE HAS RECEIVED A FREE RIDE HIGHER FOR MOST OF THE PAST TWELVE MONTHS ON TURMOIL IN RUSSIA AND IN THE EUROPEAN MONETARY SYSTEM YESTERDAY INVESTORS FOCUSED INSTEAD ON SWITZERLAND'S OWN ECONOMIC FUNDAMENTALS AN ARTICLE IN THE WALL STREET JOURNAL EUROPE HIGHLIGHTED SWITZERLAND'S SAGGING INDUSTRIAL OUTPUT AND RETAIL SALES AND INCREASING UNEMPLOYMENT LATER IN THE DAY THE SWISS GOVERNMENT RELEASED AN INTERNATIONAL MONETARY FUND REPORT THAT NOTED THE NEED TO GET THE COUNTRY'S BUDGET DEFICIT UNDER CONTROL THE EFFECT WAS A SWISS FRANC SELLOFF PARTICULARLY AGAINST THE MARK WHICH HAS FALLEN NINE PERCENT AGAINST THE FRANC DURING THE PAST TWELVE MONTHS THE MARK WAS TRADING AT ZERO POINT EIGHT FOUR THREE ZERO FRANC LATE YESTERDAY IN NEW YORK COMPARED WITH ZERO POINT EIGHT THREE SEVEN NINE FRANC LATE TUESDAY THE SWISS FRANC FELL TO SEVENTY FOUR POINT EIGHT ONE YEN FROM SEVENTY FIVE POINT OH FOUR YEN LATE TUESDAY FOLLOWING THE MARKET'S RUSH TOWARD THE JAPANESE CURRENCY THE YEN FIRST JUMPED DURING AUSTRALIAN TRADING WHEN SENIOR U. S. TRADE OFFICIALS TOLD REPORTERS THAT NEGOTIATIONS ON AUTOS AND AUTO PARTS WERE AT AN IMPASSE CURRENCY MARKETS ARE CONCERNED THAT IF JAPAN WON'T ACT TO OPEN MARKETS AND CUT ITS TRADE SURPLUS THE U. S. WILL RESORT TO PUBLIC CALLS FOR A HIGHER YEN THEN DURING ASIAN TRADING REPORTS EMERGED THAT ECONOMIST C. FRED BERGSTEN WANTS TO SEE THE DOLLAR TRADING IN A SIGNIFICANTLY LOWER RANGE AGAINST THE YEN MR. BERGSTEN AN ADVISER TO FORMER PRESIDENT CARTER IS THOUGHT BY SOME PLAYERS TO HAVE THE EAR OF PRESIDENT CLINTON MR. BERGSTEN'S OFFICE LATER CONFIRMED THAT THE ECONOMIST WANTS TO SEE THE DOLLAR IN A RANGE BETWEEN NINETY YEN AND ONE HUNDRED TEN YEN WELL BELOW CURRENT MARKET LEVELS NEWS STARVED MARKETS JUMPED ON THE INITIAL REPORTS OF MR. BERGSTEN'S VIEWS SENDING THE YEN HIGHER AGAINST MOST MAJOR CURRENCIES QUOTE THE YEN GOT A LITTLE STARTER WITH THE BREAKDOWN OF TALKS AND THE BERGSTEN COMMENTS MADE PEOPLE TAKE NOTICE QUOTE SAID CARL FORCHESKI A TRADER AT CHEMICAL BANK IN NEW YORK I DON'T KNOW IF HE HAS ANY DIRECT INPUT INTO THE ADMINISTRATION BUT SOME PEOPLE FEEL THAT HE DOES MR. FORCHESKI ADDED THAT IF THE DOLLAR FALLS THROUGH SUPPORT AT ONE HUNDRED NINE POINT EIGHT OH YEN PLAYERS WILL BEGIN TO DOUBT THE YEN DOWNTREND UNDER WAY SINCE THE FEDERAL RESERVE'S MASSIVE INTERVENTION IN AUGUST A BREAK OF ONE POINT SEVEN THREE FIVE OH MARKS ALSO WOULD BE SIGNIFICANT HE SAID THOUGH TRADERS ARE LIKELY TO WANT TO BUY DOLLARS ON ANY DIP AGAINST THE MARK MR. FORCHESKI ADDED TADD C. SEITZ FIFTY ONE YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SCOTTS COMPANY MARYSVILLE OHIO AND ROBERT L. PURDUM FIFTY EIGHT CHAIRMAN OF ARMCO INCORPORATED PITTSBURGH WERE NAMED DIRECTORS OF THIS MAKER AND MARKETER OF HIGHLY ENGINEERED LIGHTING FIXTURES AND SYSTEMS FOR INDUSTRIAL COMMERCIAL AND OUTDOOR APPLICATIONS THE APPOINTMENTS INCREASE THE SIZE OF HOLOPHANE'S BOARD TO SEVEN MEMBERS FROM SIX MR. SEITZ WHO HAD BEEN ELECTED A DIRECTOR IMMEDIATELY AFTER THE COMPLETION OF THE COMPANY'S INITIAL PUBLIC OFFERING IN NOVEMBER NINETEEN NINETY THREE SUCCEEDED FRED ULRICH WHO LEFT THE BOARD AT THAT TIME MR. PURDUM IS A NEW ADDITION TO THE BOARD PAY T. V. SONY CORPORATION'S SONY PICTURES ENTERTAINMENT UNIT AGREED TO ACQUIRE A SUBSTANTIAL EQUITY INTEREST IN H. B. O. OLE A PARTNERSHIP OF TIME WARNER INCORPORATED'S HOME BOX OFFICE PAY TELEVISION UNIT AND OMNIVISION LATINAMERICAN ENTERTAINMENT INCORPORATED CARACAS VENEZUELA A LATIN AMERICAN PAY TELEVISION SERVICE COMPANY H. B. O. OLE IS A TWENTY FOUR HOUR SPANISH LANGUAGE PAY T. V. NETWORK IN LATIN AMERICA WARNER BROTHERS TIME WARNER INCORPORATED'S WARNER BROTHERS WORLDWIDE RETAIL WILL OPEN FIFTY MORE STORES IN NINETEEN NINETY FOUR INCLUDING FLAGSHIP STORES IN LONDON GLASGOW SCOTLAND AND BERLIN FOLLOWING THE SUCCESS OF ITS FIRST SIXTY STORES SELLING MERCHANDISE BASED ON WARNER BROTHERS CARTOONS AND FILMS S. H. L. SYSTEMHOUSE INCORPORATED OTTAWA SAID IT WILL OFFER BETWEEN FIFTY MILLION AND ONE HUNDRED MILLION CANADIAN DOLLARS THIRTY EIGHT POINT ONE MILLION U. S. DOLLARS AND SEVENTY SIX POINT TWO MILLION U. S. DOLLARS OF COMMON SHARES IN CANADA AND THE U. S. THE NUMBER OF SHARES TO BE OFFERED AND THE PRICE HAVEN'T BEEN DETERMINED THE COMPUTER SERVICES COMPANY SAID IT WILL USE THE PROCEEDS TO FINANCE GROWTH AND EXPANSION THE UNDERWRITING GROUP WILL BE LED BY WOOD GUNDY INCORPORATED AND RICHARDSON GREENSHIELDS OF CANADA LIMITED THE EUROPEAN ECONOMY IS IN THE DOLDRUMS BUT IT DOESN'T LOOK SO BAD FROM HERE NEARLY THREE YEARS AFTER COMPLETING THE ACQUISITION OF THE EUROPEAN APPLIANCE BUSINESS OF PHILIPS ELECTRONICS N. V. WHIRLPOOL CORPORATION IS POSTING HIGHER PROFITS AND BIGGER MARKET SHARE IN EUROPE EVEN AS THE OVERALL INDUSTRY EXPERIENCES A RECESSION INDUCED SLUMP THERE ARE SIGNS THAT THE WORST IS OVER BUT A RECOVERY IS EXPECTED TO BE SLOW EXECUTIVES AT THE COMPANY'S WORLD HEADQUARTERS HERE SAY THEIR EUROPEAN APPLIANCE BUSINESS WILL CONTRIBUTE TO RECORD CORPORATE OPERATING EARNINGS BEFORE SPECIAL ONE TIME CHARGES WHEN NINETEEN NINETY THREE RESULTS ARE RELEASED EARLY NEXT MONTH IN NINETEEN NINETY TWO WHIRLPOOL POSTED RECORD PROFIT OF TWO HUNDRED FIVE MILLION DOLLARS OR TWO DOLLARS AND NINETY CENTS A SHARE ON REVENUE OF SEVEN POINT THREE BILLION DOLLARS WHILE SOME COMPANIES SUCH AS U. S. RIVAL MAYTAG CORPORATION STRUGGLE WITH GLOBAL STRATEGIES WHIRLPOOL WINS RAVES FROM ANALYSTS FOR MAKING ITS AGGRESSIVE EXPANSION WORK BY MOVING INTO EUROPE AND INTO DEVELOPING NATIONS WHIRLPOOL AIMS TO TAP GROWTH AREAS TO COMPLEMENT ITS MATURE SLOW GROWTH BUSINESS IN NORTH AMERICA IT'S ALSO PLOTTING A MOVE INTO ASIA WHERE IT NOW HAS MARKET SHARE OF ONLY ONE PERCENT BUT THE COMPANY AIMS TO HAVE FIVE MANUFACTURING FACILITIES IN ASIA IN THE NEXT FEW YEARS WITH THE NUMBER ONE MARKET POSITION IN NORTH AMERICA NUMBER THREE POSITION IN EUROPE AND A LEADING PRESENCE IN SOUTH AMERICA WHIRLPOOL ALREADY IS QUOTE THE BEST POSITIONED APPLIANCE COMPANY FOR THE NINETEEN NINETIES QUOTE ASSERTS ANALYST JERRY HERMAN OF KEMPER SECURITIES INCORPORATED IN CHICAGO WALL STREET SEEMS TO AGREE THE COMPANY'S SHARES WERE UP EIGHTY SEVEN POINT FIVE CENTS TO SIXTY FIVE DOLLARS AND SEVENTY FIVE CENTS IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY NOT FAR FROM THE FIFTY TWO WEEK HIGH OF SIXTY EIGHT DOLLARS THAT'S TWICE THEIR LEVEL OF MID NINETEEN NINETY ONE WHEN WHIRLPOOL COMPLETED ITS TWO STEP ACQUISITION OF THE PHILIPS BUSINESS FOR A ABOUT ONE BILLION DOLLARS WHIRLPOOL ACQUIRED ITS INITIAL FIFTY THREE PERCENT STAKE IN JANUARY NINETEEN EIGHTY NINE AS THE THIRD LARGEST AMONG SOME ONE HUNDRED APPLIANCE MAKERS VYING FOR BUSINESS IN EUROPE WHIRLPOOL FACES STIFF COMPETITION AND DESPITE IMPROVEMENT WHIRLPOOL'S OPERATING MARGIN OF ABOUT FIVE POINT SIX PERCENT IN EUROPE IS FAR FROM ITS GOAL OF TEN PERCENT MOREOVER WITH THE STRONGER ROLE OF UNIONS AND POLITICAL RESISTANCE TO LAYOFFS AND PLANT CLOSINGS IT TAKES LONGER TO TRIM COSTS IN EUROPE THAN IN THE U. S. STILL WHIRLPOOL HAS ALREADY SIMPLIFIED ITS ORGANIZATION AS EUROPE MOVES TOWARD A SINGLE MARKET SEPARATE SALES ORGANIZATIONS IN SEVENTEEN COUNTRIES HAVE BEEN REPLACED BY FOUR REGIONAL SALES OFFICES THE COMPANY CUT INVENTORIES AND WHITTLED THE NUMBER OF WAREHOUSES FROM THIRTY TO SIXTEEN THE GOAL IS TO REDUCE THAT TO FIVE OR SIX SAYS HANK BOWMAN PRESIDENT OF WHIRLPOOL EUROPE B. V. AT THE SAME TIME GLOBAL BUYING OF PARTS DECREASES COSTS AND CONTRIBUTES TO A FORTY PERCENT REDUCTION IN THE NUMBER OF SUPPLIERS TO EUROPEAN OPERATIONS TECHNOLOGY IS ALSO SHARED ACROSS BORDERS THERE'S A DRAMATIC OPPORTUNITY FOR PRODUCT IMPROVEMENT SAYS MR. BOWMAN IN A TELEPHONE INTERVIEW FROM WHIRLPOOL'S EUROPEAN HEADQUARTERS IN COMERIO ITALY WHIRLPOOL'S NEW EUROPEAN DRYER HAS TWENTY TWO PERCENT FEWER PARTS YET WHIRLPOOL SAYS IT'S MORE EFFICIENT AND OF HIGHER QUALITY THAN ITS PREVIOUS OFFERING ON THE OUTSIDE IT LOOKS EUROPEAN BUT TEAR THAT BABY APART AND IT'S DESIGNED LIKE OUR U. S. DRYER WHICH WE BELIEVE IS THE LOW COST PRODUCT IN THE U. S. SAYS WILLIAM MAROHN WHIRLPOOL'S PRESIDENT AND CHIEF OPERATING OFFICER WHO PRECEDED MR. BOWMAN AS HEAD OF EUROPEAN OPERATIONS WHIRLPOOL PLANS TO SPEND HUNDREDS OF MILLIONS OF DOLLARS OVER THE NEXT FEW YEARS TO REMAKE ITS EUROPEAN APPLIANCES EVEN AS IT CONTINUES TO PARE COSTS THE IDEA IS TO EXPLOIT WHAT THE COMPANY CALLS A VALUE GAP BETWEEN U. S. AND EUROPEAN MARKETS MEASURED BY NUMBER OF HOURS WORKED EUROPEAN CONSUMERS PAY UP TO TWICE AS MUCH FOR MAJOR APPLIANCES AS THEIR U. S. COUNTERPARTS WITH PRODUCT REDESIGN AND COST CUTTING WHIRLPOOL FIGURES IT CAN GIVE EUROPEAN CUSTOMERS HIGHER QUALITY AND KEEP MORE PROFITS FOR ITSELF A PIECE WE'LL SHARE WITH OUR CUSTOMERS AND A PIECE WE'LL SHARE WITH OUR SHAREHOLDERS SAYS MR. MAROHN IN NINETEEN NINETY THREE WHIRLPOOL'S EUROPEAN SHIPMENTS ROSE ABOUT FIVE PERCENT EVEN AS THE OVERALL EUROPEAN APPLIANCE BUSINESS WAS FLAT OR DOWN THAT MARKED THE FIFTH CONSECUTIVE ANNUAL INCREASE IN MARKET SHARE LEADING TO ITS CURRENT ESTIMATED SHARE OF TEN PERCENT TO FIFTEEN PERCENT OF THE MARKET BIG PLAYERS SUCH AS WHIRLPOOL HAVE A CHANCE TO ADD MARKET SHARE OVER THE NEXT FEW YEARS THE EUROPEAN APPLIANCE BUSINESS IS EXPECTED TO CONSOLIDATE MUCH AS THE U. S. APPLIANCE INDUSTRY DID IN THE NINETEEN SEVENTIES AND NINETEEN EIGHTIES EUROPE HAS A COLLECTION OF TWO HUNDRED BRAND NAMES MANY OF THEM POPULAR IN JUST ONE COUNTRY THE BIGGEST PLAYER SWEDEN'S A. B. ELECTROLUX IS ABOUT TO GET BIGGER WITH THE PLANNED ACQUISITION OF THE APPLIANCE UNIT OF GERMANY'S A. E. G. A. G. THE NUMBER TWO COMPANY BOSCH SIEMENS HAUSGERATE GMBH HAS A MARKETING AND TECHNICAL AGREEMENT WITH MAYTAG WHILE MAYTAG HAS HIGH HOPES FOR THAT AGREEMENT IT HAS STUMBLED BADLY WITH ITS HOOVER APPLIANCE OPERATIONS LOCATED MAINLY IN GREAT BRITAIN WHIRLPOOL'S STRATEGY IS TO STAND OUT WITH STRONG PAN EUROPEAN BRANDS RESEARCH TELLS US THAT THE TRENDS PREFERENCES AND BIASES OF CONSUMERS COUNTRY TO COUNTRY ARE REDUCING AS OPPOSED TO INCREASING SAYS MR. BOWMAN ALTHOUGH REGIONAL PREFERENCES WILL REMAIN WHIRLPOOL SEES A CHANCE TO TAKE ADVANTAGE OF THE MOVE TOWARD A LESS FRACTURED EUROPE IN THE U. S. WHIRLPOOL HAS BECOME THE MOST SUCCESSFUL AT BUILDING A LADDER OF BRANDS WITH KITCHENAID ON THE TOP RUNG WHIRLPOOL AND SEARS KENMORE LABELS IN THE BROAD MIDDLE AND ROPER AND ESTATE IN THE LOWER OR QUOTE VALUE QUOTE ENDS IT HOPES TO DO THE SAME IN EUROPE WITH ITS BAUKNECHT BRAND AT THE HIGH END WHIRLPOOL IN THE MIDDLE AND IGNIS WITH LOWER PRICED APPLIANCES WHEN WHIRLPOOL FIRST ENTERED EUROPE IT USED A DUAL PHILIPS SLASH WHIRLPOOL BRAND TO INTRODUCE CONSUMERS TO ITS FLAGSHIP WHIRLPOOL BRAND BUT IT'S STARTING TO GO IT ALONE NOW SILENCING SKEPTICS WHO THOUGHT EUROPEANS WOULDN'T BUY THE NEW AMERICAN NAME ANDREW HASKINS AN ELECTRONICS ANALYST AT LONDON'S JAMES CAPEL AND COMPANY SAYS WHIRLPOOL CONNOTES QUALITY TO CONSUMERS PHILIPS HAD A STRONG BRAND NAME AND WHIRLPOOL HAS BEEN ABLE TO BUILD ON THAT QUITE CONSIDERABLY MR. HASKINS SAYS QUOTE JOHN WAS A BAD BOY AND BEAT A POOR CAT TOM PUT A STONE IN A BLIND MAN'S HAT JAMES WAS THE BOY WHO NEGLECTED HIS PRAYERS THEY'VE ALL GROWN UP UGLY AND NOBODY CARES QUOTE HERE'S A POEM TO FIRE ANY CHILD'S IMAGINATION IT BUILDS TO A DRAMATIC CLIMAX YET LEAVES SO MUCH FOR THE IMAGINATION TO FILL IN WHAT DID JOHN TOM AND JAMES DO AS UNCARED FOR UGLY ADULTS AND DID THEY MOVE IN TOGETHER AND FORM A LAW FIRM HOW DID TOM GET THAT STONE IN THE BLIND MAN'S HAT WHAT HAPPENS TO A BLIND MAN WITH A STONE UP THERE THERE ARE DOZENS OF SUCH POEMS STORIES AND DOCUMENTS TO ENGAGE A KID'S MIND IN WILLIAM J. BENNETT'S ANTHOLOGY THE BOOK OF VIRTUES A TREASURY OF GREAT MORAL STORIES SIMON AND SCHUSTER EIGHT HUNDRED THIRTY ONE PAGES TWENTY SEVEN DOLLARS AND FIFTY CENTS THERE'S A FABULOUS POEM BY HILAIRE BELLOC ABOUT REBECCA THE LITTLE GIRL WHO LIKED TO SLAM DOORS IT HAPPENED THAT A MARBLE BUST SLASH OF ABRAHAM WAS STANDING JUST SLASH ABOVE THE DOOR THIS LITTLE LAMB SLASH HAD CAREFULLY PREPARED TO SLAM AND DOWN IT CAME UPON HER HEAD POOR LITTLE REBECCA WAS DEAD THEN THERE'S GODFREY GORDON GUSTAVUS GORE WHO LEFT DOORS OPEN HIS PARENTS DECIDED THEY WOULD HAVE TO SHIP HIM TO SINGAPORE ANOTHER TALE CONCERNS A FAMILY OF PIONEERS WHO WERE TRAPPED IN THE SIERRA NEVADAS THROUGH A LONG COLD WINTER THEN THERE IS PENELOPE WHO STRUNG ALONG A GROUP OF RANDY BACHELORS UNTIL HER HUSBAND ULYSSES CAME HOME FROM THE WAR AND SHOT THEM WITH ARROWS THERE'S A GREAT PIECE FROM WILLA CATHER ABOUT A GROUP OF BOYS WHO GET TO HANG OUT ALL NIGHT BY A LAKE AND TALK ABOUT LOST GOLD THESE ARE THE SORTS OF STORIES KIDS LIKE TO TELL THEIR FRIENDS ABOUT BUT JUST AS ANY NORMAL RED BLOODED KID IS GETTING ENTHUSIASTIC ABOUT THIS BOOK THE REFRIGERATOR DOOR LOOMS AS FAR AS CAN BE DETERMINED AMERICANS ARE THE ONLY PEOPLE ON EARTH WHO ATTACH PIOUS HOMILIES OR ANN LANDERS COLUMNS TO THEIR REFRIGERATOR DOORS WITH LITTLE MAGNETS THIS REPRESENTS SOMETHING FINE IN THE AMERICAN CHARACTER THE URGE FOR SELF IMPROVEMENT BUT FOR KIDS THE REFRIGERATOR DOOR HOMILIES ARE JUST MORALISTIC TOLLBOOTHS ON THE WAY TO THE ICEBOX IN THIS BOOK THE REFRIGERATOR DOOR IS NEVER FAR AWAY FOR EXAMPLE WHEN GEORGE WASHINGTON'S NAME APPEARS WHEN HE WAS FOURTEEN WASHINGTON COPIED ONE HUNDRED TEN RULES FOR CIVILITY OF WHICH FIFTY NINE ARE EXCERPTED HERE INCLUDING NUMBER SEVENTEEN BEING TO ADVISE OR REPREHEND ANYONE CONSIDER WHETHER IT OUGHT TO BE IN PUBLIC OR IN PRIVATE PRESENTLY OR AT SOME OTHER TIME ALSO IN WHAT TERMS TO DO IT AND IN REPROVING SHOW NO SIGNS OF CHOLER BUT DO IT WITH SWEETNESS AND MILDNESS WOULDN'T WE BE ASHAMED OF ANY KID WHO COULD READ THAT ENTIRE SENTENCE WITHOUT HAVING THE URGE TO GET UP AND WATCH T. V. ALAS THERE IS TOO MUCH STUFF HERE THAT WOULD APPEAL TO THE SORT OF KID WHO WOULD EXIST IF KIDS WERE DESIGNED BY ADULTS AND NOT VERY FUN ADULTS EITHER THERE ARE TOO MANY PIECES WITH TITLES SUCH AS YOU MUSTN'T QUIT OR RESPECTING THE FLAG OR JEFFERSON URGES AN EXAMINATION OF FAITH PICTURE YOURSELF AT THIRTEEN WITH YOUR DAD RISING FROM THE DINNER TABLE HITCHING UP HIS PANTS AND DECLARING GEE KIDS LET'S DIP INTO A TREASURY OF GREAT MORAL STORIES AND THEN HE PULLS THIS GREAT SLAB OF A BOOK OFF THE SHELF THERE'S UNANIMITY AMONG THE YOUNGER SET QUOTE OH NO NOT THE VIRTUES BOOK OF COURSE WE ADULTS CAN UNDERSTAND WHY MR. BENNETT AND HIS ASSISTANTS STEVEN TIGNER AND JOHN CRIBB CHOSE THIS FORBIDDING TITLE USING THE WORD VIRTUE IS ITSELF A STATEMENT VIRTUE IS A WORD THAT FELL OUT OF COMMON USAGE IN THE EARLY NINETEEN SEVENTIES REPLACED BY THE WORD VALUES VALUES ARE THINGS EACH OF US FORM VIRTUE IS SOMETHING BEYOND US BUILT INTO THE STRUCTURE OF EXISTENCE VIRTUE EXISTS WHETHER ANYONE IS VIRTUOUS OR NOT VALUES CHANGE WITH CIRCUMSTANCE EACH OF US IS SUPPOSED TO HAVE HIS OWN SET THE FACT THAT THIS BOOK ROCKETED TO THE TOP OF THE NEW YORK TIMES BESTSELLER LIST SUGGESTS THAT THERE ARE A LOT OF PEOPLE WHO FEEL THAT VALUES ARE A THIN SUBSTITUTE FOR VIRTUE BUT UNFORTUNATELY SOME PARENTS ARE GOING TO BUY THIS BOOK AS A GOOD DEED AND THEN THEY'RE GOING TO SIT MARY DOWN WITH THE SELECTION PLATO ON RESPONSIBILITY THE PROBLEM WITH THE VALUES REVOLUTION WAS NOT THAT IT TAUGHT THE WRONG THINGS BUT THAT IT COVERED SUCH A MEAGER RANGE OF HUMAN NATURE IN TODAY'S CHILDREN'S BOOKS THE LANGUAGE IS ALMOST INVARIABLY FLAT THE BOOKS CAN TEACH YOU TO RESPECT THE ENVIRONMENT OR TO THINK ABOUT SOCIAL PROBLEMS SUCH AS HOMELESSNESS BUT THEY DON'T INSPIRE FLIGHTS OF FANCY INTO THE WORLD OF MAGIC AND ETERNITY CAN YOU IMAGINE AN ANGEL OR ZEUS OR A FAIRY COMING DOWN TO TEACH VALUES ON THE OTHER HAND ANYBODY WHO GREW UP BEFORE NINETEEN SEVENTY KNOWS MANY OF THE GREAT STORIES BROUGHT BACK IN THIS BOOK JOHN HENRY BUILDING THE RAILROAD DOLLY MADISON AT THE WHITE HOUSE CASTOR AND POLLUX THE MESSAGE OF THEM ALL IS YOU MAY TURN OUT TO BE A BAD PERSON SO SOMETHING SERIOUS IS AT STAKE WHICH IS IMPOSSIBLE IN VALUES STORIES WHERE EVERYBODY IS ALWAYS GOOD AT HEART NO MATTER HOW THEY BEHAVE IN THE STORIES IN THIS BOOK THE GODS COME DOWN AND TURN PEOPLE INTO TREES AND DIAMONDS COME OUT OF GIRLS' MOUTHS CHILDREN CAN HAVE A GREAT TIME READING THESE TALES SO LONG AS THEY DON'T DISCOVER THAT IT'S SUPPOSED TO BE GOOD FOR THEM MR. BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE BORDEN INCORPORATED REPORTED A LARGE FOURTH QUARTER NET LOSS THAT REFLECTS A PREVIOUSLY ANNOUNCED RESTRUCTURING CHARGE AND LOSSES IN SEVERAL OF ITS FOOD BUSINESSES BORDEN POSTED A LOSS OF SIX HUNDRED THIRTY FIVE POINT NINE MILLION DOLLARS OR FOUR DOLLARS AND FIFTY CENTS A SHARE COMPARED WITH YEAR EARLIER NET INCOME OF TWENTY EIGHT POINT FOUR MILLION DOLLARS OR TWENTY CENTS A SHARE THE QUARTER INCLUDES A SIX HUNDRED THIRTY TWO MILLION DOLLAR CHARGE FOR BUSINESS DIVESTMENTS ORGANIZATIONAL RESTRUCTURING ASSET WRITE DOWNS AND CHANGES IN ACCOUNTING ESTIMATES EXCLUDING THE CHARGE BORDEN'S FOURTH QUARTER LOSS TOTALED THREE POINT NINE MILLION DOLLARS OR TWO POINT SEVEN CENTS A SHARE SALES FROM CONTINUING OPERATIONS DROPPED TWO POINT TWO PERCENT TO ONE POINT FOUR SEVEN BILLION DOLLARS AS EXPECTED BORDEN ALSO HALVED ITS QUARTERLY DIVIDEND TO SEVEN POINT FIVE CENTS A SHARE THE DIVIDEND IS PAYABLE MARCH FIRST TO SHAREHOLDERS OF RECORD FEBRUARY ELEVENTH BORDEN'S PERFORMANCE LARGELY FELL WITHIN WALL STREET'S EXPECTATIONS QUOTE EVERYONE KNEW BAD NEWS WAS COMING QUOTE SAYS JOHN MCMILLIN ANALYST AT PRUDENTIAL SECURITIES INCORPORATED THE UPSIDE IS PROBABLY LIMITED UNTIL THEIR EARNINGS IMPROVE BORDEN'S STOCK ROSE SEVENTY FIVE CENTS OR FIVE PERCENT TO FIFTEEN DOLLARS AND TWENTY FIVE CENTS A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING EARLIER THIS MONTH BORDEN ANNOUNCED THE CHARGE AND UNVEILED A RESTRUCTURING PLAN THAT CALLS FOR THE SALE OF ITS SAGGING SNACK BUSINESS WHICH IS MADE UP LARGELY OF SMALLER REGIONAL BRANDS SUCH AS WISE POTATO CHIPS BORDEN ALSO IS PUTTING ON THE BLOCK ITS TWO SMALLER SEAFOOD AND JAMS AND JELLIES BUSINESSES THAT TOGETHER WITH SNACKS GENERATED ONE POINT TWO FIVE BILLION DOLLARS OR NEARLY TWENTY PERCENT OF THE COMPANY'S ANNUAL SALES BORDEN SAID THE FOURTH QUARTER CHARGE INCLUDES FOUR HUNDRED NINETY MILLION DOLLARS TO COVER A LOSS ON ITS DIVESTITURES SEVENTY SEVEN POINT FOUR MILLION DOLLARS FOR RESTRUCTURING AND SIXTY FOUR POINT SIX MILLION DOLLARS FOR ASSET WRITE DOWNS AND CHANGES IN ACCOUNTING ESTIMATES BORDEN'S FOOD BUSINESSES CONTINUED TO DEMONSTRATE WEAKNESS SOME OF THE AREAS WERE WEAKER THAN I EXPECTED SAID NOMI GHEZ OF GOLDMAN SACHS AND COMPANY BORDEN SAID THE NORTH AMERICAN FOODS UNIT POSTED A LOSS IN THE QUARTER VERSUS A PROFIT IN THE COMPARABLE YEAR AGO PERIOD WHILE SALES DECLINED SEVEN POINT SEVEN PERCENT TO SEVEN HUNDRED THIRTY TWO MILLION DOLLARS GAINS IN PASTA SAUCE AND SEVERAL NICHE GROCERY ITEMS WERE MORE THAN OFFSET BY LOSSES IN DAIRY AND PASTA INTERNATIONAL FOODS REPORTED IMPROVED OPERATING INCOME WHILE PACKAGING AND INDUSTRIAL PRODUCTS HAD MODESTLY LOWER INCOME BORDEN'S PRESIDENT AND CHIEF EXECUTIVE ERVIN R. SHAMES REITERATED HIS EARLIER STATEMENT THAT PER SHARE EARNINGS IN NINETEEN NINETY FOUR SHOULD BE AT THE UPPER END OF THE SEVENTY FIVE CENTS TO ONE DOLLAR RANGE QUARTERLY EARNINGS ARE EXPECTED TO STRENGTHEN AFTER A MARGINALLY PROFITABLE FIRST QUARTER HE SAID AS MOMENTUM AND COST SAVINGS BUILD MERCEDES BENZ A. G.'S CHAIRMAN MAPPED OUT A PLAN FOR A RADICAL REORGANIZATION OF THE COMPANY'S PRODUCTION STRUCTURE AFTER A YEAR IN WHICH ITS PASSENGER CAR AND COMMERCIAL VEHICLE DIVISIONS HAD OPERATING LOSSES HELMUT WERNER'S STRATEGY WOULD INCREASE THE PERCENTAGE OF CARS PRODUCED OUTSIDE OF GERMANY AS WELL AS SAVE MONEY BY BUYING MORE PARTS FROM OUTSIDE SOURCES MR. WERNER MEANWHILE ENVISIONS CATAPULTING THE COMPANY'S PASSENGER CAR PRODUCTION TO AS MANY AS NINE HUNDRED THOUSAND UNITS BY NINETEEN NINETY EIGHT FROM FOUR HUNDRED EIGHTY TWO THOUSAND LAST YEAR THROUGH AGGRESSIVE MOVES INTO NEW GEOGRAPHICAL MARKETS AND NEW MARKET NICHES SUCH AS SPORT UTILITY VEHICLES MINIVANS AND A SUBCOMPACT CITY CAR QUOTE UNTIL NOW WE HAVE BEEN TOO PASSIVE DEALING WITH STRUCTURAL CHANGES QUOTE MR. WERNER SAID AT A NEWS CONFERENCE MERCEDES IS THE AUTO UNIT OF GERMAN INDUSTRIAL GIANT DAIMLER BENZ A. G. INDUSTRY ANALYSTS EXPRESSED MODERATE ENTHUSIASM FOR MR. WERNER'S STRATEGY BUT SAID THEY'LL WAIT TO SEE HOW WELL MANAGEMENT IMPLEMENTS THE PROGRAM THEY'RE SAYING MANY OF THE RIGHT THINGS AND THEY'RE PROBABLY DOING MOST OF THE RIGHT THINGS BUT THEY'VE FALLEN SHORT ON IMPLEMENTATION BEFORE SAID EDMOND CHEW EUROPEAN AUTO INDUSTRY ANALYST AT NOMURA RESEARCH INSTITUTE OTHER ANALYSTS WORRIED THAT MR. WERNER MIGHT BE AIMING AT TOO BIG AN EXPANSION TOO QUICKLY WHILE NEGLECTING THE HEART OF THE COMPANY'S FRANCHISE TRADITIONAL LUXURY CARS IN FAVOR OF NEW MARKET NICHES MERCEDES BENZ'S COMMERCIAL VEHICLES DIVISION WILL REMAIN SOLIDLY IN THE RED IN NINETEEN NINETY FOUR MR. WERNER SAID THE CAR DIVISION HOWEVER MAY MAKE IT BACK INTO THE BLACK THIS YEAR HE SAID A RECOVERY ON THE CAR SIDE OF THE BUSINESS WOULD BE PRIMARILY DRIVEN BY SALES OF THE LOWER PRICED C. CLASS THE BABY BENZ WHICH HAS SOLD ONE HUNDRED TWENTY THOUSAND UNITS SINCE BEING INTRODUCED IN THE SECOND HALF OF LAST YEAR IN NINETEEN NINETY FOUR MR. WERNER PREDICTED THAT THE C. CLASS AS WELL AS THE RETOOLED E. CLASS WOULD HELP PUSH CAR SALES UP TO FIVE HUNDRED SEVENTY THOUSAND UNITS FROM FIVE HUNDRED EIGHT THOUSAND UNITS LAST YEAR AND THAT SALES FOR THE COMPANY WOULD TOTAL SIXTY EIGHT BILLION MARKS THIRTY EIGHT POINT EIGHT FIVE BILLION DOLLARS MR. WERNER REFUSED TO GIVE ANY INDICATION OF THE MAGNITUDE OF OPERATING LOSSES FOR NINETEEN NINETY THREE BUT SAID MERCEDES WOULD HAVE A PROFIT FOR NINETEEN NINETY THREE WITHOUT GIVING DETAILS IN NINETEEN NINETY THREE SALES DROPPED TWO POINT NINE PERCENT TO SIXTY FOUR POINT SIX BILLION MARKS FROM SIXTY SIX POINT FIVE BILLION MARKS IN NINETEEN NINETY TWO BY NINETEEN NINETY EIGHT MERCEDES AIMS TO RAISE THE RATIO OF FOREIGN PRODUCED OR ASSEMBLED CARS TO TEN PERCENT FROM THE CURRENT TWO PERCENT ONLY PARTLY MOTIVATED BY HIGH COSTS OF PRODUCTION IN GERMANY THIS MOVE IS PRIMARILY ONE TO WIN MERCEDES A BETTER POSITION IN GLOBAL MARKETS MR. WERNER SAID MR. WERNER CITED THE NEED TO BALANCE OUT THE RISKS OF MARKET DOWNTURNS CURRENCY SWINGS AND THE NEED TO HAVE A PRESENCE IN EACH OF THE WORLD'S MAJOR TRADING BLOCS ANALYSTS WONDER IF MERCEDES WILL RUN INTO PROBLEMS WITH ITS PLAN TO OUTSOURCE MORE OF ITS CAR PARTS A QUICK INCREASE IN OUTSOURCING WOULD MEAN A LOT OF SURPLUS MERCEDES WORKERS AND THE COMPANY IS ALREADY UNDER POLITICAL PRESSURE TO STEM LAYOFFS THE DECISION TO KEEP PRODUCTION OF THE NEW A CLASS IN GERMANY FOR INSTANCE REPRESENTED A CONCESSION TO LABOR PRESSURE AND WAS A KEY FACTOR IN LIMITING THE NUMBER OF JOB LOSSES TO EIGHT THOUSAND RATHER THAN THIRTEEN THOUSAND THREE HUNDRED AS ORIGINALLY SLATED FOR NINETEEN NINETY FOUR STILL THE UPTURN IN THE U. S. MARKET WHERE MERCEDES HOPES TO BOOST SALES TO SEVENTY THOUSAND IN NINETEEN NINETY FOUR FROM SIXTY ONE THOUSAND IN NINETEEN NINETY THREE IS A GOOD HARBINGER AND THE APPRECIATION OF THE YEN GIVES MERCEDES A FURTHER COMPETITIVE ADVANTAGE BY MAKING ITS CHIEF COMPETITION IN THAT MARKET THE LEXUS DIVISION OF TOYOTA MOTOR CORPORATION RELATIVELY MORE EXPENSIVE THE HOUSE BANKING COMMITTEE SAID THAT THE U. S. CENTRAL CREDIT UNION HAD DEPOSITED TWO HUNDRED FIFTY FIVE MILLION DOLLARS IN THE FAILED BANCO ESPANOL DE CREDITO AND ASKED THE FEDERAL RESERVE BOARD WHETHER OTHER AMERICAN FINANCIAL INSTITUTIONS WERE HURT BY THE SPANISH BANK FAILURE THE DEPOSITS OF U. S. CENTRAL WHICH HANDLES INVESTMENT AND SERVICES FOR AMERICA'S THIRTEEN THOUSAND CREDIT UNIONS WEREN'T INSURED HOWEVER THE CENTRAL BANK OF SPAIN SAID IN DECEMBER THAT IT INTENDS TO GUARANTEE ALL FOREIGN AND DOMESTIC DEPOSITS IN BANCO ESPANOL KNOWN AS BANESTO THE BANK WAS SEIZED BY THE SPANISH GOVERNMENT A MONTH AGO J. P. MORGAN AND COMPANY THE NEW YORK BANKING COMPANY HAD MADE A MAJOR INVESTMENT IN BANESTO WHICH IT STANDS TO LOSE THE BANKING PANEL'S DISCOVERY THAT U. S. CENTRAL WHICH IS BASED IN OVERLAND PARK KANSAS ALSO HAD BEEN INVOLVED WITH BANESTO HAS SPURRED THE PANEL TO FIND OUT IF OTHER BANKS HAD DEPOSITS THERE THE HOUSE PANEL HAS ASKED THE FED TO PROVIDE IT WITH INFORMATION ON HOW IT SUPERVISES THE INVESTMENTS BY MORGAN AS WELL AS REPORTS ON OTHER BANKS THAT MAY HAVE MADE INVESTMENTS OR DEPOSITS IN BANESTO IN DECEMBER SPAIN'S CENTRAL BANK FIRED THE CHAIRMAN AND THE ENTIRE BOARD OF BANESTO SPAIN'S FOURTH LARGEST COMMERCIAL BANK IN AN ATTEMPT TO STAVE OFF A THREATENED RUN ON DEPOSITS THE CENTRAL BANK SAID IT WAS ACTING UNDER PROVISIONS OF SPANISH BANKING LAW IN LIGHT OF JITTERS STEMMING FROM SEVERE FINANCIAL PRESSURES ON BANESTO THE CENTRAL BANK'S MOVE THOUGH TALKED ABOUT FOR MONTHS AS A POSSIBILITY WAS A BOMBSHELL IN MADRID'S FINANCIAL MARKETS PRIVATE CONTRACTORS SEEKING BUSINESS WITH THE FEDERAL GOVERNMENT UNDER A PILOT PROGRAM TO BE UNVEILED TODAY WILL BE REQUIRED TO SHOW HOW WELL THEY HAVE PERFORMED ON THEIR PREVIOUS FEDERAL CONTRACTS REPRESENTATIVES OF NINETEEN FEDERAL AGENCIES INCLUDING THE TREASURY AGRICULTURE ENERGY TRANSPORTATION AND JUSTICE DEPARTMENTS THE AIR FORCE THE ENVIRONMENTAL PROTECTION AGENCY AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WILL TODAY SIGN A PLEDGE TO MAKE QUOTE PAST PERFORMANCE QUOTE A MAJOR CRITERION FOR EVALUATING A PRIVATE COMPANY'S FITNESS FOR GOVERNMENT WORK THE PLEDGE FOLLOWS THROUGH ON A CALL FOR GREATER FLEXIBILITY IN FEDERAL PROCUREMENT WHICH WAS INCLUDED IN VICE PRESIDENT AL GORE'S REINVENTING GOVERNMENT REPORT LAST SUMMER THE PROGRAM WILL APPLY ONLY TO CERTAIN CONTRACTS REPRESENTING ROUGHLY TWO BILLION DOLLARS IN FEDERAL SPENDING UNDERTAKEN BY THE PARTICIPATING AGENCIES ALTHOUGH SOME FEDERAL AGENCIES MOST NOTABLY THE DEFENSE DEPARTMENT HAVE USED VARIATIONS ON THE PAST PERFORMANCE STANDARD BEFORE FEDERAL AGENCIES GENERALLY HAVE BEEN LOATH TO CONSIDER PAST PERFORMANCE IN AWARDING CONTRACTS FEDERAL OFFICIALS AVOID THE ISSUE BECAUSE IT IS THOUGHT TO BE TOO SUBJECTIVE A CRITERION COMPARED WITH MORE OBJECTIVE CONSIDERATIONS SUCH AS WHICH COMPANY IS THE LOWEST BIDDER OR WHICH COMPANY'S PROPOSAL MEETS CERTAIN TECHNICAL SPECIFICATIONS THE AGENCIES THAT SIGN TODAY'S AGREEMENT WILL MEET IN COMING WEEKS TO ESTABLISH GUIDELINES ON HOW TO IMPLEMENT THE PAST PERFORMANCE STANDARD AMONG THE FACTORS THAT THE FEDERAL GOVERNMENT UNDER THE NEW PROCEDURE WOULD CONSIDER IN GRANTING CONTRACTS ARE WHETHER A COMPANY HAS A RECORD OF DELIVERING PRODUCTS OR SERVICES ON TIME AND HOW FREQUENTLY THE COMPANY HAS SOUGHT PRICE ADJUSTMENTS ON FEDERAL CONTRACTS BECAUSE OF UNFORESEEN CIRCUMSTANCES MOVE OVER MICHAEL JORDAN FORMER TEXAS TECH UNIVERSITY BASKETBALL STAR SHERYL SWOOPES WHO WOWED TEXAS FANS WITH HER SPEED AND SHOOTING TOUCH HAS LANDED ON THE PAGES OF VANITY FAIR MAGAZINE IN A BIG TIME ENDORSEMENT DEAL FOR ATHLETIC SHOE GIANT NIKE INCORPORATED AND IN SIGNING THE CONTRACT MS. SWOOPES NAMED LAST WEEK THE ASSOCIATED PRESS'S FEMALE ATHLETE OF NINETEEN NINETY THREE HAS REACHED ANOTHER MILESTONE SHE IS THE FIRST FEMALE BASKETBALL PLAYER EVER TO BE FEATURED IN A NIKE AD CAMPAIGN NO SMALL ACHIEVEMENT IN A SPORT THAT USUALLY ABANDONS WOMEN PLAYERS AFTER COLLEGE THOUGH NIKE OFFICIALS WON'T DISCLOSE DETAILS OF THE CONTRACT A REPRESENTATIVE FOR MS. SWOOPES SAYS IT EXTENDS THROUGH THE NINETEEN NINETY SIX SUMMER OLYMPICS NIKE OFFICIALS SAY MS. SWOOPES IS PART OF AN AD CAMPAIGN AIMED AT WOMEN IN A TWO PAGE AD IN THE FEBRUARY ISSUE OF VANITY FAIR SHE TELLS READERS ABOUT WORKING OUT TWICE A DAY PLAYING BASKETBALL WITH HER BROTHERS AND BECOMING A QUOTE BLACK FEMALE ROLE MODEL FOR YOUNGER KIDS QUOTE NOW THE SIX FOOT TALL TWENTY TWO YEAR OLD WHO LED HER TEAM TO THE NATIONAL TITLE LAST YEAR IS FINISHING THE LAST FEW HOURS OF A SPORTS SCIENCE DEGREE AT TEXAS TECH SHE STILL WORKS OUT WITH THE SCHOOL'S BASKETBALL TEAM TO STAY IN SHAPE FOR NINETEEN NINETY SIX AND SHE IS AN ANNOUNCER ON RADIO BROADCASTS OF THE TEAM'S GAMES THOUGH SHE STAYS BUSY MS. SWOOPES IS FRUSTRATED BY THE LIMITED POSTGRADUATE OPPORTUNITIES IN WOMEN'S BASKETBALL SHE PLAYED FOR THREE MONTHS LAST YEAR FOR AN ITALIAN WOMEN'S TEAM BUT SAYS SHE LEFT AFTER IT FAILED TO MAKE GOOD ON ALL ITS PROMISES THERE'S NOTHING TO DO UNLESS YOU GO OVERSEAS AND PLAY MS. SWOOPES LAMENTS I LOVE TO PLAY I JUST DON'T WANT TO HAVE TO DO IT OVERSEAS THE CLINTON ADMINISTRATION DEFERRING PLANS FOR ITS OWN TELECOMMUNICATIONS REFORM BILL THIS WEEK WILL OFFER ONLY LIGHT CRITICISM OF TWO MEASURES IN THE HOUSE GOVERNMENT OFFICIALS SAID ADMINISTRATION OFFICIALS HAD SAID THEY WOULD FILE LEGISLATION EARLY THIS YEAR TO REMOVE SOME BARRIERS TO COMPETITION AMONG CABLE TELEPHONE AND LONG DISTANCE COMPANIES BUT NOW SAY THEY WILL HOLD OFF UNTIL THE SENATE TAKES UP LEGISLATION SEVERAL MONTHS FROM NOW THE STRATEGY IN ADDITION TO GIVING THE ADMINISTRATION MORE TIME TO WORK OUT DETAILS REFLECTS A FEAR OF SLOWING THE HOUSE BILLS EVEN THOUGH SOME ADMINISTRATION OFFICIALS THINK THE BILLS NEED TO INCLUDE STRONGER CONSUMER PROTECTIONS QUOTE WE HAVE SOME THINGS WE'D LIKE TO ADDRESS AT THE MARGINS QUOTE ONE ADMINISTRATION OFFICIAL SAID QUOTE BUT THE REALITY IS WE DON'T WANT TO STAND IN THE WAY OF A FREIGHT TRAIN QUOTE HOUSE LEADERS HAVE SET AGGRESSIVE TIMETABLES FOR THE TELECOMMUNICATIONS BILLS SO THEY CAN BEGIN CONSIDERING HEALTH CARE REFORM AND OTHER INITIATIVES IN MARCH REPRESENTATIVE JOHN DINGELL D. MICHIGAN CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE AND JACK BROOKS D. TEXAS CHAIRMAN OF THE HOUSE JUDICIARY COMMITTEE HAVE WARNED THE ADMINISTRATION NOT TO DERAIL THEIR COMPROMISE BILL WHICH THEY FILED IN DECEMBER AFTER NEARLY A YEAR OF DELICATE NEGOTIATIONS LARRY IRVING ASSISTANT SECRETARY FOR COMMUNICATIONS AND INFORMATION AT THE COMMERCE DEPARTMENT AND ANNE BINGAMAN THE JUSTICE DEPARTMENT'S TOP ANTITRUST OFFICIAL ARE EXPECTED TO TESTIFY TODAY ON THE BROOKS DINGELL BILL WHICH ALLOWS BABY BELLS INTO THE LONG DISTANCE MANUFACTURING AND INFORMATION SERVICES BUSINESSES IF THEY GET APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION AND THE JUSTICE DEPARTMENT MR. IRVING AND F. C. C. CHAIRMAN REED HUNDT ARE SCHEDULED TO TESTIFY TOMORROW ON A BILL SPONSORED BY REPRESENTATIVE EDWARD MARKEY D. MASS CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE THAT WOULD GIVE CABLE AND LOCAL TELEPHONE COMPANIES GREATER FREEDOM TO COMPETE IN EACH OTHER'S BUSINESSES ADMINISTRATION OFFICIALS SAY THEY HAVE GREATER DIFFERENCES WITH THE MARKEY BILL WHICH IS CO SPONSORED BY REPRESENTATIVES JACK FIELDS R. TEXAS AND RICK BOUCHER D. VIRGINIA IN PARTICULAR THE ADMINISTRATION WANTS A MORE SWEEPING PROHIBITION AGAINST TELEPHONE COMPANIES BUYING CABLE SYSTEMS IN THEIR SERVICE AREAS THE OFFICIALS SAID THE MARKEY FIELDS BILL ALLOWS A TELEPHONE COMPANY TO BUY A CABLE SYSTEM THAT SERVES FEWER THAN TEN PERCENT OF THE HOUSEHOLDS IN ITS SERVICE AREA THE MARKEY FIELDS BILL ALSO ALLOWS THE F. C. C. TO GRANT A WAIVER IF THE CABLE OPERATOR WOULD NOT BE ECONOMICALLY VIABLE ON ITS OWN ALSO THE ADMINISTRATION IS SEEKING STRONGER PROVISIONS TO ENSURE THAT TELEPHONE COMPANIES GIVE COMPETITORS ACCESS TO THE LOCAL PHONE NETWORK ONE OFFICIAL SAID BUT HE SAID THE ADMINISTRATION AGREES WITH THE MARKEY FIELDS PROPOSAL THAT TELEPHONE COMPANIES SHOULD BE ALLOWED TO PROVIDE VIDEO SERVICE IMMEDIATELY RATHER THAN WAITING AS LONG AS SEVEN YEARS AS THE CABLE INDUSTRY HAS REQUESTED THE ADMINISTRATION AND CONGRESS ARE UNDER PRESSURE TO REFORM TELECOMMUNICATIONS LAWS THIS YEAR BECAUSE THE COURTS HAVE ALREADY STARTED STRIKING DOWN SOME BARRIERS AND RECENT CORPORATE COMBINATIONS THREATEN TO DO THE SAME JOHN MALONE CHAIRMAN OF CABLE T. V. GIANT TELE COMMUNICATIONS INCORPORATED WHICH IS SEEKING APPROVAL TO BE ACQUIRED BY BELL ATLANTIC CORPORATION GAVE A BLUNT VIEW OF THE CHANGES DURING A SPEECH HERE YESTERDAY HE SAID CUSTOMERS WILL EVENTUALLY CHOOSE FROM COMPETING OLIGOPOLIES THAT WILL GIVE THEM LOWER PRICES IF THEY ORDER CABLE TELEPHONE LONG DISTANCE AND TEXT RETRIEVAL SERVICES FROM A SINGLE SOURCE HE SAID SMALL COMPANIES INCLUDING T. C. I. WOULD BE LEFT BEHIND IF THEY DON'T FORGE ALLIANCES THE ONLY OTHER APPROACH IS FOR THE GOVERNMENT TO BALKANIZE IT TO THE DEGREE THAT WE DON'T HAVE AN INDUSTRY MR. MALONE SAID IN THE SPEECH SPONSORED BY THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES BUT THE GOVERNMENT DISAGREED OUR WHOLE GOAL IS TO INCREASE THE NUMBER OF PLAYERS IN EVERY FIELD AND TO MAKE COMPETITION FAIR ONE OFFICIAL SAID QUOTE OLIGOPOLY IS NOT COMPETITION QUOTE ANOTHER ADDED THOUGH BEST KNOWN FOR ITS RAILROAD KANSAS CITY SOUTHERN INDUSTRIES INCORPORATED IS GETTING A LIFT THESE DAYS FROM AN UNUSUAL SOURCE THE EXPLOSIVE GROWTH OF MUTUAL FUNDS ITS RAILWAY OPERATION POSTED TWENTY FIVE PERCENT NINE MONTH GROWTH IN PRETAX PROFIT BUT THE BIGGEST FACTOR IN KCSI'S EARNINGS HAS BEEN THE EXPANSION OF ITS FINANCIAL SERVICES OPERATIONS KCSI HOLDS AN EIGHTY ONE PERCENT STAKE IN FAST GROWING MUTUAL FUND MANAGER JANUS CAPITAL CORPORATION AND ALSO OWNS A MAJOR PROVIDER OF TRANSACTION PROCESSING SERVICES TO THE FUND INDUSTRY THE BOOMING FUND INDUSTRY HAS SWOLLEN PROFIT AT THOSE UNITS THOUGH SOME OBSERVERS HAVE SUGGESTED RECENTLY THAT JANUS'S LONG TORRID MOMENTUM MAY BE SLOWING SLIGHTLY NEVERTHELESS ASSETS UNDER MANAGEMENT AT JANUS HAVE JUMPED MORE THAN TWELVE FOLD IN THE PAST FOUR YEARS AND PROFIT FOR NINETEEN NINETY THREE IS EXPECTED TO DOUBLE FOR THE SECOND YEAR IN A ROW INDEED FOR THE YEAR JUST ENDED THE FINANCIAL GROUP'S PROFIT IS EXPECTED TO EXCEED THE RAILWAY'S AS RECENTLY AS NINETEEN NINETY THE TRANSPORT SEGMENT'S OPERATING PROFIT WAS NEARLY THREE TIMES THE FINANCIAL GROUP'S THE COUPLING OF A DIESEL POWERED HAULER OF CHICKEN FEED AND COAL WITH A HOTSHOT FINANCIAL PLAYER MIGHT SEEM INCONGRUOUS BUT IT APPEARS TO WORK QUOTE IT'S A GREAT FIT QUOTE SAYS MERRILL LYNCH ANALYST DOUGLAS ROCKEL WHO FINDS THAT THE RAILROAD'S CAPITAL INTENSIVE OPERATIONS HELP HOLD DOWN THE TAX LIABILITY OF THE FINANCIAL SIDE AND GRAEME ANNE LIDGERWOOD A RAILROAD ANALYST AT C. S. FIRST BOSTON CORPORATION AND AN EARLY OBSERVER OF THE SHIFT IN THE COMPANY'S EARNINGS STRUCTURE REMAINS VERY POSITIVE ABOUT ITS PROSPECTS THE COMBINATION GIVES THEM EARNINGS DIVERSIFICATION SHE SAYS AND THE HIGHER MULTIPLE ITS STOCK IS NOW ACCORDED COULD EVENTUALLY GIVE THEM A LEG UP IN TERMS OF ANY POSSIBLE ACQUISITIONS MADE FOR STOCK FOR MORE THAN A YEAR KCSI'S SHARES HAVE CLIMBED AS INVESTORS BECAME CONVINCED THAT ITS SHARES SHOULD NO LONGER BE VALUED AT THE LOWER MULTIPLES THAT RAILROAD STOCKS COMMAND THE COMPANY HAS A HISTORICAL FAMILIARITY AND COMFORT LEVEL WITH THESE TWO INDUSTRIES SAYS LANDON H. ROWLAND THE FIFTY SIX YEAR OLD HARVARD LAW SCHOOL GRADUATE WHO AFTER SERVING AS OUTSIDE COUNSEL JOINED THE COMPANY AS ASSISTANT TO THE PRESIDENT IN NINETEEN EIGHTY THREE HE'S NOW PRESIDENT AND CHIEF EXECUTIVE OFFICER THE MOVE INTO FINANCIAL SERVICES IS THE FORTUITOUS OUTCOME AND INDEED THE ONLY ELEMENT REMAINING OF AN EARLIER DIVERSIFICATION EFFORT UNDER A BACK TO FUNDAMENTALS DRIVE LAUNCHED BY MR. ROWLAND THE COMPANY HAS SHED ASSORTED NONTRANSPORT OPERATIONS COLLECTED BY EARLIER MANAGEMENT INCLUDING A PHARMACEUTICAL OPERATION A TELECOMMUNICATIONS CONCERN AND A HOST OF SMALLER INTERESTS IN BUSINESSES SUCH AS VETERINARY PRODUCTS THE COMPANY'S INITIAL FORAY INTO THE FINANCIAL FIELD CAME IN THE EARLY NINETEEN SIXTIES WITH ITS ACQUISITION OF A SMALL MUTUAL FUND MANAGER AS THAT BUSINESS GREW OFFICIALS CAME TO REALIZE THE RECORD KEEPING BURDEN OF SUCH A BUSINESS THE RAILROAD'S DATA PROCESSING COMPUTER TEAM WAS PUT TO WORK DEVELOPING A SYSTEM TO SERVICE THE MUTUAL FUND ACCOUNTS OUT OF THAT PROJECT CAME D. S. T. SYSTEMS INCORPORATED WHICH KCSI CALLS THE NATION'S BIGGEST PROVIDER OF COMPUTERIZED SHAREHOLDER SERVICING FOR MUTUAL FUNDS MUTUAL FUNDS KCSI'S CHIEF FINANCIAL OFFICER JOSEPH MONELLO SAYS D. S. T. INCREASINGLY VIEWS ITSELF AS SERVICING THE FINANCIAL SERVICES INDUSTRY INCLUDING BANKS AND INSURERS AND NOT SIMPLY THE FUND INDUSTRY FOR INSTANCE BY MONTH'S END D. S. T. PLANS TO HAVE INCREASED ITS STAKE TO NEARLY TWENTY SEVEN PERCENT IN CONTINUUM COMPANY AN AUSTIN TEXAS COMPUTER SERVICES CONCERN THAT SPECIALIZES IN THE INSURANCE INDUSTRY THE FINANCIAL SEGMENT'S EARNINGS WERE ALSO BOOSTED BY JANUS THE HIGH PROFILE DENVER BASED MUTUAL FUND CONCERN KCSI BOUGHT ITS CONTROLLING STAKE FROM FOUNDER THOMAS BAILEY IN NINETEEN EIGHTY FOUR WHEN JANUS HAD ABOUT FOUR HUNDRED MILLION DOLLARS IN ASSETS UNDER MANAGEMENT ASSETS STOOD AT ONE POINT SEVEN BILLION DOLLARS AT THE END OF NINETEEN EIGHTY NINE AND SINCE HAVE BALLOONED TO ABOUT TWENTY TWO POINT TWO BILLION DOLLARS KCSI'S EIGHTEEN PERCENT STAKE IN BERGER ASSOCIATES A MANAGER OF GROWTH ORIENTED FUNDS WAS ACQUIRED IN NINETEEN NINETY TWO MEANWHILE THE COMPANY'S RAILWAY ISN'T STANDING STILL ONE OF THE SMALLEST OF THE NATION'S MAJOR RAILROADS KANSAS CITY SOUTHERN LUGS COAL FROM THE WEST TO UTILITIES IN SOUTH CENTRAL U. S. AND ON THE RETURN TRIP HAULS CHEMICALS AND PETROLEUM PRODUCTS FROM THE BIG PLANTS OF LOUISIANA AND TEXAS IT CARRIES MIDWESTERN GRAIN TO POULTRY FARMERS IN ARKANSAS AND PICKS UP PLYWOOD FROM MILLS IN THE SOUTH UNLIKE SOME OF ITS COMPETITORS THE RAIL UNIT HAS SEEN OPERATING PROFIT HOLD UP WELL DESPITE FLAT VOLUME IN LAST YEAR'S FIRST NINE MONTHS PRETAX EARNINGS AT THE RAILROAD CLIMBED TWENTY FIVE PERCENT TO SIXTY POINT SIX MILLION DOLLARS FROM FORTY EIGHT POINT FOUR MILLION DOLLARS IN THE YEAR EARLIER PERIOD THE PERFORMANCE HAS BEEN ATTRIBUTED IN LARGE PART TO MR. ROWLAND'S EFFORTS TO TRIM COSTS AND MAKE THE RAILROAD MORE CUSTOMER FRIENDLY IN ADDITION THE COMPANY HAS BEEN SPENDING HEAVILY SINCE NINETEEN EIGHTY SIX TO IMPROVE ITS RAIL FACILITIES A FIVE HUNDRED MILLION DOLLAR OVERHAUL OF KANSAS CITY SOUTHERN'S ROUTES IS SCHEDULED TO BE COMPLETED IN EARLY NINETEEN NINETY FIVE WHILE THE COMPANY DECLINES TO COMMENT MANY ANALYSTS THINK THE COMING DROPOFF IN CAPITAL OUTLAYS WILL ALLOW AN ACCELERATION OF ITS ACQUISITION STRATEGY IN ADDITION TO A STRING OF SMALLER PURCHASES AIMED AT FINE TUNING ITS ROUTE STRUCTURE KANSAS CITY SOUTHERN CLOSED IN MID NINETEEN NINETY THREE A TWO HUNDRED NINETEEN MILLION DOLLAR ACQUISITION OF MIDSOUTH CORPORATION A REGIONAL RAIL COMPANY HEADQUARTERED IN JACKSON MISSISSIPPI THE RELATIVELY STIFF PURCHASE PRICE RAISED SOME EYEBROWS AMONG ANALYSTS BUT THEY POINT OUT THAT THE ADDITIONAL ONE THOUSAND TWO HUNDRED MILES OF TRACK PERMITS THE RAILROAD TO ESTABLISH A ROUTE FROM DALLAS EAST TO BIRMINGHAM ALABAMA AND MERIDIAN MISSISSIPPI THAT LINE IS THE COMPANY'S TICKET TO ENTER THE EAST WEST LAND BRIDGE IN WHICH HAULING INTERMODAL CONTAINERS AND TRUCK TRAILERS IS THE INDUSTRY'S FASTEST GROWING SERVICE THE NEW ROUTE THE COMPANY SAYS CUTS A HALF DAY TO A FULL DAY FROM THE TRANSIT TIME FOR TRAFFIC MOVING FROM THE SOUTHWEST TO THE SOUTHEAST PARTICULARLY ATLANTA AT THE SAME TIME THE COMPANY THINKS ITS NORTH SOUTH ROUTE AND IN PARTICULAR ITS HARBOR FACILITY IN PORT ARTHUR TEXAS WILL HELP IT TO GAIN SOME OF THE INCREASING VOLUME EXPECTED TO RESULT FROM THE NORTH AMERICAN FREE TRADE AGREEMENT AMONG OTHER THINGS THE RAILROAD HOPES THE PORT ARTHUR FACILITY CAN BE USED AS A SHIPPING POINT FOR COAL TO A NUMBER OF POWER PLANTS THAT ARE PLANNED ON MEXICO'S SEABOARD BIRD CORPORATION EXPERIENCING MOUNTING LOSSES DISMISSED GEORGE F. HAUFLER AS ITS CHIEF EXECUTIVE OFFICER AFTER TWELVE YEARS ON THE JOB THE BUILDING MATERIALS AND ENVIRONMENTAL SERVICES COMPANY SAID ITS PRESIDENT JOSEPH D. VECCHIOLLA WHO JOINED BIRD LAST MAY WILL SUCCEED MR. HAUFLER AS ITS C. E. O. QUOTE THE ACTION WAS PREDICATED ON THE FINANCIAL PERFORMANCE OF THE COMPANY QUOTE SAID SPOKESMAN CHARLES FLETCHER BIRD ANNOUNCED JANUARY SEVENTEENTH THAT IT EXPECTS TO REPORT A FOURTH QUARTER LOSS THAT IS SIGNIFICANTLY LARGER THAN PREVIOUSLY ANTICIPATED FOR THE FOURTH QUARTER OF NINETEEN NINETY TWO BIRD POSTED A NET LOSS OF FIVE HUNDRED FORTY ONE THOUSAND DOLLARS OR TWENTY THREE CENTS A SHARE THE COMPANY ALSO SAID IN JANUARY THAT IT WAS PLANNING TO WITHDRAW FROM ITS ON SITE ENVIRONMENTAL REMEDIATION BUSINESS IN THE FIRST HALF OF NINETEEN NINETY FOUR BECAUSE OF DISAPPOINTING RESULTS MR. FLETCHER SAID BIRD IS CONTINUING ITS NEGOTIATIONS WITH BANKS OVER ITS PREVIOUSLY ANNOUNCED TECHNICAL DEFAULT ON A FIFTY MILLION DOLLAR LOAN AGREEMENT THE COMPANY HAS SAID IT WILL NOT DECLARE ANY DIVIDENDS UNTIL IT NEGOTIATES AN AMENDMENT TO THE LOAN THE COMPANY SAID MR. VECCHIOLLA HAS ALREADY BEGUN TO PUT IN PLACE A PLAN OF ACTION WHICH EMPHASIZES STABILIZING BANKING RELATIONS ELIMINATING ENVIRONMENTAL BUSINESS UNIT LOSSES BUILDING A STRONG BALANCED SHEET AND FOCUSING FUTURE GROWTH INITIATIVES ON BIRD'S PROFITABLE CORE HOUSING RELATED OPERATIONS MR. VECCHIOLLA THIRTY EIGHT YEARS OLD ORIGINALLY JOINED BIRD AS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IN NOVEMBER HE WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER AND HE WAS ELECTED TO THE BOARD IN DECEMBER HE PREVIOUSLY SERVED AS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF HORIZON CELLULAR TELEPHONE COMPANY BIRD SAID MR. HAUFLER SIXTY TWO WILL CONTINUE AS A DIRECTOR MR. HAUFLER IS ON LEAVE OF ABSENCE AS CHAIRMAN BECAUSE OF MEDICAL PROBLEMS GUY W. FISKE THE BOARD'S VICE CHAIRMAN WILL CONTINUE AS CHAIRMAN OF THE EXECUTIVE COMMITTEE AND WILL HAVE THE FULL RESPONSIBILITY AND AUTHORITY OF CHAIRMAN OF THE BOARD MR. HAUFLER WHO RECENTLY WAS DIAGNOSED WITH LUNG CANCER SAID WITH MY CURRENT HEALTH CONDITION I THINK WHAT IS BEING DONE IS APPROPRIATE INNOVATIVE GAMING CORPORATION OF AMERICA SAID ITS SUPPLIERS GRANTED IT WORLD WIDE MANUFACTURING AND DISTRIBUTION RIGHTS FOR ITS LIVE VIDEO CRAPS AND LIVE VIDEO BLACKJACK MACHINE GAMES FINANCIAL TERMS WEREN'T DISCLOSED HAS FREQUENTLY BEEN NOTED WE ARE SORRY WE ELECTED SOCIAL CLUB BUDDY BUILDERS GEOFFREY COX SENIOR VICE PRESIDENT OF GENZYME CORPORATION WAS NAMED A DIRECTOR OF THIS PHARMACEUTICAL CONCERN MR. COX FIFTY YEARS OLD INCREASES THE SIZE OF THE BOARD TO EIGHT MEMBERS IT HAS TAKEN THREE YEARS BUT RICHARD JOHNSON CAN FINALLY SAY HE'S GLAD HE GOT THAT TRAFFIC TICKET INSPIRED BY A DULL DEFENSIVE DRIVING COURSE HE TOOK AFTER GETTING NABBED FOR SPEEDING BACK IN SEPTEMBER NINETEEN NINETY THE APPAREL EXECUTIVE THEN THIRTY ONE YEARS OLD WAS DETERMINED TO COME UP WITH A BETTER ALTERNATIVE THE RESULT THREE WEEKS AGO HE AND TWO FRIENDS LAUNCHED U. S. INTERACTIVE INCORPORATED A BUSINESS THAT USES STATE OF THE ART TECHNOLOGY TO ALLOW TRAFFIC OFFENDERS TO COMPLETE CLASSWORK AT HOME BUT REACHING THIS MILESTONE HAS BEEN A LOT TOUGHER THAN ANY OF THEM COULD HAVE IMAGINED NOT ONLY DID THEY FACE A DEBILITATING LACK OF CAPITAL BUT THEY ALSO HAD TO WAGE A BRUISING LOBBYING BATTLE IN AUSTIN AGAINST ENTRENCHED DRIVER SAFETY BUSINESSES IN ORDER TO GET STATE APPROVAL IT'S EASY TO SEE WHY THE EXISTING OPERATORS KICKED UP A FUSS CAPITALIZING ON A STATE LAW THAT ALLOWS TRAFFIC VIOLATORS TO GET TICKETS DISMISSED OR AVOID INCREASES IN INSURANCE PREMIUMS BY ATTENDING DEFENSIVE DRIVING SCHOOL HUNDREDS OF SMALL BUSINESSES HAVE SPRUNG UP AROUND THE STATE CHARGING FIFTEEN DOLLARS TO THIRTY FIVE DOLLARS PER STUDENT AFTER HIS OWN BRUSH WITH THE SYSTEM MR. JOHNSON AT THE TIME A VICE PRESIDENT OF A HOUSTON FITNESS APPAREL MANUFACTURER DECIDED TO TRY TO FUNNEL SOME OF THAT REVENUE HIS WAY HE AND A FRIEND SCOTT OWENS AN EXECUTIVE AT A LOCAL VENTURE CAPITAL FIRM CAME UP WITH AN IDEA FOR A SIX HOUR VIDEO COURSE THAT WOULD ALLOW CUSTOMERS TO TAKE THE VIDEO HOME FOR THREE DAYS AND WATCH AT THEIR CONVENIENCE TO VERIFY PARTICIPATION USERS WOULD HAVE TO LOG ON TO A COMPUTER AT HOME SIGNAL WHEN THEY WERE STARTING TO WATCH THE VIDEO AND THEN ANSWER QUESTIONS BY COMPUTER AT SPECIFIED INTERVALS THE WOULD BE ENTREPRENEURS WERE SO ENAMORED OF THEIR IDEA THAT THEY BOTH QUIT THEIR THIRTY THOUSAND DOLLAR A YEAR JOBS THEN CAME THE HARD PART ONE OF THE FIRST STEPS AN ORAL PRESENTATION TO THE TEXAS EDUCATION AGENCY WHICH CERTIFIES DEFENSIVE DRIVING COURSES UNFORTUNATELY AGENCY OFFICIALS ALSO REQUESTED A WRITTEN PROPOSAL SHORT OF CASH MR. JOHNSON HADN'T PAID HIS UTILITY BILLS SO THEY HAD TO STRING AN EXTENSION CORD FROM HIS NEIGHBOR'S HOUSE TO TURN ON HIS COMPUTER A FINANCIAL REPRIEVE CAME IN JANUARY NINETEEN NINETY ONE WHEN THE FATHER OF A CHILDHOOD FRIEND INVESTED TWENTY FIVE THOUSAND DOLLARS MOST OF THE MONEY WENT FOR FOOD THOUGH MESSRS JOHNSON AND OWENS ALSO BEGAN BUYING THE RIGHTS TO FILM CLIPS THEY ALSO HIRED A TECHNOLOGY COMPANY TO DEVELOP NECESSARY SOFTWARE IN THE SPRING OF NINETEEN NINETY ONE DISASTER STRUCK A GROUP OF DRIVING SAFETY SCHOOLS GOT AN AMENDMENT ADDED TO A NEW DRIVER SAFETY LAW STATING THAT ALL COURSES MUST HAVE QUOTE AN INSTRUCTOR WHO IS PHYSICALLY PRESENT IN APPROPRIATE PROXIMITY TO THE STUDENT FOR THE TYPE OF INSTRUCTION BEING GIVEN QUOTE THE DRIVING SCHOOL ASSOCIATION OF TEXAS A TRADE ORGANIZATION SAYS IT WAS CONCERNED THAT THE VIDEO COURSE WOULD UNDERCUT THE INDUSTRY'S CREDIBILITY PARTICULARLY IF STUDENTS COULD BEAT THE SYSTEM BY HAVING A FRIEND TAKE IT FOR THEM OR EVEN FAST FORWARDING THROUGH THE TAPE MESSRS JOHNSON AND OWENS FELT THEY COULD FOIL CHEATERS BUT BECAUSE THEIR SYSTEM IS PROPRIETARY THEY WERE RELUCTANT TO GIVE DETAILS TO THEIR OPPONENTS AND BECAUSE OF THEIR POLITICAL NAIVETE THE AMENDMENT WAS PASSED BEFORE THEY COULD MUSTER THE RESOURCES TO FIGHT IT THE ENTREPRENEURS HOWEVER BELIEVED THAT THEY COULD GET AROUND THE LAW BY HAVING AN INSTRUCTOR AVAILABLE THROUGH A TOLL FREE LINE THEY CONTINUED TO PUSH THEIR IDEA AS THEY DID THOUGH THEY REALIZED THEY HAD A MORE FUNDAMENTAL PROBLEM THEY KNEW NOTHING ABOUT TEACHING DRIVER SAFETY SO THEY ARRANGED A DEMONSTRATION MEETING WITH INDUSTRY EXECUTIVES HOPING TO FIND A PARTNER WILLING TO SELL THEM AN EXISTING COURSE TO ADAPT TO VIDEO IT WAS ANOTHER DISASTER THE DRIVER SAFETY MOB IS A BLUE COLLAR GROUP EXPLAINS PHIL WARD HEAD OF AUSTIN BASED U. S. A. TRAINING COMPANY WHICH PROVIDES COURSE MATERIAL TO SCHOOLS AROUND THE STATE THESE GUYS CAME IN WEARING WHAT LOOKED LIKE SIX HUNDRED DOLLAR SUITS THEY WERE YOUNG HIP SLICK COOL AND THEY HAD A BETTER MOUSETRAP IT SCARED THE HELL OUT OF US NOBODY VOLUNTEERED TO HELP BUT IN SUBSEQUENT MEETINGS MR. WARD WAS IMPRESSED WITH THE ENTREPRENEURS' TENACITY AND HE WAS SOON TRANSFORMED FROM KEY OPPONENT TO BUSINESS PARTNER THE AGREEMENT ALLOWED U. S. INTERACTIVE TO ADAPT HIS COURSE TO VIDEO IN RETURN FOR A THREE DOLLAR CUT ON EACH RENTAL AND THE RIGHT TO DISTRIBUTE IT THROUGH THE TWO HUNDRED BUSINESSES IN TEXAS THAT OFFER U. S. A. TRAINING'S CLASSROOM PROGRAM SOME WEALTHY INVESTORS ALSO CHIPPED IN CAPITAL MEANWHILE THE ENTREPRENEURS SOUGHT TO SHAVE COSTS THEY SHOT MUCH OF THE VIDEO THEMSELVES USING FRIENDS AS ACTORS MICHAEL CURRAN A FRIEND WHO HAD BEEN A FREE LANCE TELEVISION PRODUCER IN NEW YORK BECAME THE THIRD GENERAL PARTNER IN OCTOBER THE TEA APPROVED THEIR PROGRAM BUT THE FIGHT ISN'T OVER THE DRIVING SCHOOL ASSOCIATION THEN SUED THE TEA IN AUSTIN STATE COURT CHARGING THAT THE COURSE WAS APPROVED ILLEGALLY IF THE ENTREPRENEURS ARE WORRIED THEY AREN'T SHOWING IT THOUGH THEY HAVE TAUGHT ONLY EIGHTY NINE STUDENTS IN THEIR THREE WEEKS IN BUSINESS AT FORTY DOLLARS APIECE THEY HAVE ALREADY OBTAINED APPROVAL TO BEGIN OPERATIONS IN NEW MEXICO AND HOPE TO EXPAND TO OTHER STATES THE LAWSUIT IS JUST ONE MORE THORN IN OUR SIDE SHRUGS THE THIRTY YEAR OLD MR. OWENS AFTER A WHILE YOU JUST GET USED TO IT THE SOFTWARE SUPPLIER NAMED ERIC L. MILES TO THE NEW POST OF PRESIDENT OF ITS DATABASE AND CONNECTIVITY BUSINESS UNIT MR. MILES FORTY SEVEN YEARS OLD PREVIOUSLY WORKED AT INTERNATIONAL BUSINESS MACHINES CORPORATION JONATHAN SCHOOLAR HAS A REMINDER OF THE PAST CONNECTED TO HIS OFFICE PHONE A BUTTON THAT ONCE TETHERED HIM DIRECTLY TO THE NEW YORK OFFICE OF HARRY HUTZLER THE MAN WHO GUIDED THE WEINGARTEN AND CONSTELLATION MUTUAL FUNDS TO SOME OF THE BEST RECORDS ON WALL STREET THESE DAYS THE BUTTON IS INOPERABLE MR. HUTZLER RETIRED A MONTH AGO BUT HIS STYLE OF STOCK PICKING REMAINS IN THE HANDS OF MR. SCHOOLAR WHOM MR. HUTZLER GROOMED AS SUCCESSOR FOR EIGHT YEARS AND WHAT A RECORD MR. SCHOOLAR HAS BEEN GIVEN AMID THE LONG TERM WEAKNESS OF MOST TEXAS BASED MUTUAL FUNDS CONSTELLATION AND WEINGARTEN BOTH MANAGED BY HOUSTON'S AIM ADVISORS INCORPORATED STAND OUT AS EXCEPTIONS OVER THE TEN YEARS ENDED IN DECEMBER CONSTELLATION WAS THE TOP CAPITAL APPRECIATION FUND IN THE COUNTRY RETURNING A CUMULATIVE FOUR HUNDRED TEN PERCENT OVER THE PAST FIFTEEN YEARS WEINGARTEN A GROWTH FUND RANKS AS THE NINTH BEST EQUITY FUND IN THE COUNTRY A TEN THOUSAND DOLLAR INVESTMENT IN NINETEEN SEVENTY EIGHT WOULD TODAY BE WORTH MORE THAN ONE HUNDRED FIFTY THOUSAND DOLLARS QUOTE THAT TYPE OF PERFORMANCE TELLS YOU HARRY'S BASIC PHILOSOPHY WORKS QUOTE SAYS MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL SERVICES INCORPORATED THAT PHILOSOPHY STRESSES THREE PRINCIPLES STAY FULLY INVESTED THROUGH BULL MARKETS AND BEAR MARKETS BASE BUY AND SELL DECISIONS ONLY ON ACCELERATING OR FLAGGING EARNINGS AND DON'T WORRY ABOUT BEING LATE TO JOIN OR LEAVE THE PARTY NINETY NINE PERCENT OF WALL STREET IS TRYING TO FORECAST TOPS AND BOTTOMS SAYS MR. SCHOOLAR WE JUST WAIT FOR THEM TO HAPPEN AS A RESULT WEINGARTEN AND CONSTELLATION TYPICALLY BUY IN AFTER THE PARTY HAS BEGUN AND SELL OUT AFTER THE PARTY IS OVER BUT MR. SCHOOLAR NOTES WE DON'T MIND TAKING OUR MEAT OUT OF THE MIDDLE NOT THAT WEINGARTEN AND CONSTELLATION ARE INFALLIBLE IN NINETEEN EIGHTY FOUR FOR INSTANCE CONSTELLATION'S RETURN WAS MINUS FIFTEEN PERCENT IN NINETEEN NINETY THE FUND'S VALUE DROPPED FOUR PERCENT A YEAR LATER HOWEVER THE FUND MADE UP GROUND IN A BIG WAY RETURNING SEVENTY POINT FOUR PERCENT WEINGARTEN TOO HAS SUFFERED ITS SHARE OF MISTAKES FOR THE PAST TWO YEARS THE FUND HAS RESIDED IN THE BOTTOM FIFTEEN PERCENT OF ALL GROWTH STOCKS ACCORDING TO MORNINGSTAR MUTUAL FUNDS CHICAGO BLAME IT ON HEALTH CARE MESSRS SCHOOLAR AND HUTZLER EVER TRUE TO THE PRINCIPLES HUNG ON TO THOSE STOCKS UNTIL EARNINGS FELL DESPITE A CLINTON ADMINISTRATION INDUCED PLUNGE THAT HAD ALREADY KNOCKED FIFTY PERCENT OFF THE VALUE OF SOME STOCKS SOMETIMES YOU LOSE DESPITE PRINCIPLES MR. SCHOOLAR SHRUGS PRIOR TO NINETEEN EIGHTY SIX BOTH WEINGARTEN AND CONSTELLATION WERE INDEPENDENT FUNDS MANAGED BY MR. HUTZLER IN NINETEEN EIGHTY SIX AIM THEN PRIMARILY A FIXED INCOME FIRM PURCHASED THE RIGHTS TO MANAGE THE TWO FUNDS WITH THEIR COMBINED ASSETS OF ABOUT TWO HUNDRED FIFTY MILLION DOLLARS MR. HUTZLER AGREED TO STAY ON FOR A WHILE THAT SAME YEAR AIM HIRED MR. SCHOOLAR THEN TWENTY FIVE YEARS OLD AND A TRADER AT CROSSTOWN FUND RIVAL AMERICAN CAPITAL HE WAS ASSIGNED TO CO MANAGE BOTH CONSTELLATION AND WEINGARTEN HIS DUTIES LEARN EVERYTHING I COULD FROM HARRY AND UNLEARN EVERYTHING I ALREADY KNEW SAYS MR. SCHOOLAR NOW THIRTY TWO NOW THAT MR. HUTZLER HAS RETIRED MR. SCHOOLAR ALONE MANAGES WEINGARTEN WHICH HAS NEARLY FIVE BILLION DOLLARS IN ASSETS HE CO MANAGES CONSTELLATION WITH THREE POINT ONE BILLION DOLLARS IN ASSETS WITH ROBERT KIPPES BUT MR. SCHOOLAR PLANS TO KEEP THE HUTZLER PHILOSOPHY ALIVE AS HE SAYS QUOTE WHY CHANGE A GOOD THING QUOTE IS HI LO AUTOMOTIVE HITTING ON ALL CYLINDERS OR ARE THE TROUBLES OF THE PAST YEAR SIGNS OF MISFIRES TO COME BASED ON THE HOUSTON COMPANY'S STOCK PERFORMANCE DURING THE PAST YEAR INVESTORS SEEM TO THINK HI LO NEEDS AN OVERHAUL AS EARNINGS DETERIORATED AND SALES AT STORES OPEN A YEAR OR MORE STUMBLED THE STOCK TOOK A NOSE DIVE FROM A HIGH EXCEEDING TWENTY DOLLARS TO A LOW UNDER TEN DOLLARS A NUMBER OF ANALYSTS DROPPED COVERAGE TODAY HI LO TRADES JUST SHY OF ELEVEN DOLLARS OR A RELATIVELY CHEAP FOURTEEN POINT FIVE TIMES PROJECTED NINETEEN NINETY FOUR EARNINGS THOSE ANALYSTS STILL AROUND HOWEVER SAY HI LO SIMPLY NEEDS A TUNE UP FOR VALUE HUNTERS THEY SAY NOW IS THE TIME TO JUMP ABOARD PARTICULARLY SINCE THE COMPANY IS MAKING A NAME FOR ITSELF NOT ONLY IN RETAILING AUTO PARTS BUT IN COMMERCIAL AUTO PARTS SALES AS WELL QUOTE THIS IS A STOCK READY TO BOUNCE QUOTE SAYS STEPHEN GIRSKY AN ANALYST AT PAINEWEBBER IN NEW YORK HI LO HE NOTES CURRENTLY TRADES BARELY ABOVE ITS NINE DOLLAR AND FORTY ONE CENT BOOK VALUE NET ASSETS LESS NET LIABILITIES IN AN INDUSTRY THAT COMMANDS BETWEEN ONE POINT SEVEN AND TWO POINT TWO TIMES BOOK MR. GIRSKY BELIEVES THAT AT CURRENT LEVELS THERE'S LITTLE DOWNSIDE RISK TO THE STOCK HI LO SHOULD EASILY BE TRADING IN THE HIGH TEENS HE SAYS OTHER ANALYSTS AGREE BUT THEY CAUTION THE BOUNCE LIKELY WON'T COME UNTIL THIS YEAR'S SECOND QUARTER WHEN EARNINGS ARE EXPECTED TO REBOUND FROM NINETEEN NINETY THREE'S DISMAL SHOWING I'M TAKING A WAIT AND SEE ATTITUDE EVERYTHING DEPENDS ON WHETHER HILO CAN TURN ITS EARNINGS AROUND SAYS JAY R. LEOPOLD ANALYST AT LEGG MASON WOOD WALKER IN BALTIMORE WHO RATES THE STOCK A HOLD HE NOTES THOUGH THAT IF EARNINGS COME AROUND AS EXPECTED THERE'S A WHOLE LOT OF UPSIDE TO THIS STOCK DURING NINETEEN NINETY THREE EARNINGS AND SAME STORE SALES ERODED AS A RESULT OF PRICE WARS WITH COMPETITORS SUCH AS AUTOZONE AND PEP BOYS AS THE COMPETITION SQUEEZED HI LO'S PROFIT MARGINS A LACKLUSTER RETAIL ENVIRONMENT AND BAD WEATHER IN HOUSTON HI LO'S PRIMARY MARKET WITH HALF OF ITS ONE HUNDRED FIFTY STORES CONSPIRED TO WRACK SAME STORE SALES FROM MARCH TO JUNE SAME STORE SALES FELL BETWEEN THREE POINT NINE PERCENT AND FIVE POINT EIGHT PERCENT ON A MONTHLY BASIS COMPARED WITH THE PRIOR YEAR SENDING INVESTORS SCRAMBLING FOR THE EXITS THE STOCK LOST HALF OF ITS VALUE SALES COMPARISONS BEGAN RECOVERING LATE IN THE YEAR HOWEVER BECAUSE OF THE PRICE PRESSURES THE COMPANY HAD TO SELL HIGHER COST INVENTORIES AT MARKED DOWN PRICES THE RESULTS SHOW IN HI LO'S PRETAX PROFIT MARGINS SEVEN POINT THREE PERCENT IN NINETEEN NINETY TWO COMPARED WITH FIVE POINT THREE PERCENT EXPECTED WHEN THE COMPANY REPORTS NINETEEN NINETY THREE FIGURES LATER THIS MONTH EARNINGS LOST AIR FASTER THAN A RUPTURED RADIAL NET INCOME OF TWO POINT TWO MILLION DOLLARS FOR THE THIRD QUARTER WAS A FIFTEEN PERCENT DROP FROM A YEAR EARLIER AND HI LO'S PER SHARE EARNINGS OF FIFTY FOUR CENTS FOR THE FIRST NINE MONTHS WAS A SIGNIFICANT DROP FROM THE SEVENTY CENTS A SHARE POSTED IN NINETEEN NINETY TWO MR. GIRSKY ESTIMATES THAT INVENTORY DEVALUATION WILL COST THE COMPANY EIGHT CENTS A SHARE IN EARNINGS FOR NINETEEN NINETY THREE ANALYSTS EXPECT PROFIT FOR THE FOURTH QUARTER OF NINETEEN NINETY THREE AND FIRST QUARTER OF NINETEEN NINETY FOUR TO REMAIN WEAK BUT TO THOSE CONFIDENT ABOUT HI LO'S PROSPECTS THE FUTURE LOOKS CONSIDERABLY BRIGHTER AN IMPROVED ECONOMY IS CERTAIN TO PUMP UP STORE SALES VOLUMES AND THE ADDITION OF TWENTY TO TWENTY FIVE STORES A YEAR IN DALLAS SLASH FORT WORTH SAN ANTONIO SOUTH TEXAS AND LOUISIANA WILL BOOST REVENUE WITH COST SAVING MEASURES THE COMPANY IS IMPLEMENTING ANALYSTS EXPECT NINETEEN NINETY FOUR PER SHARE PROFIT TO INCREASE A HEALTHY SEVENTEEN PERCENT FROM THE SIXTY THREE CENTS MOST EXPECT WHEN NINETEEN NINETY THREE FIGURES ARE RELEASED MOREOVER NOW THAT HI LO HAS DIGESTED ITS HIGH PRICED INVENTORIES IT HAS FOUND WAYS TO COMPETE WITH AUTOZONE AND OTHERS ON PRICE NAMELY BY OFFERING SOME LOWER PRICED BRANDS THE COMPANY LOOKS TO IMPROVE PROFITABILITY THIS YEAR BY SPENDING FIVE MILLION DOLLARS TO UPGRADE ITS DISTRIBUTION WAREHOUSE WHICH WILL ALLOW EMPLOYEES TO PICK ITEMS FOR FIFTEEN TO TWENTY STORES AT A TIME INSTEAD OF JUST ONE STORE WHAT SHOULD PROVE MORE IMPORTANT TO HI LO'S EARNINGS GROWTH AND ULTIMATELY TO INVESTORS' RETURNS IS THE COMPANY'S EXPANDING SALES TO COMMERCIAL ACCOUNTS UNLIKE MOST OF ITS COMPETITORS HI LO ISN'T JUST A RETAIL AUTO PARTS STORE WITH A FLEET OF THREE HUNDRED DELIVERY TRUCKS THE COMPANY IS GAINING MARKET SHARE AS A PRIMARY PARTS SUPPLIER TO INDEPENDENT REPAIR SHOPS PEP BOYS IS TESTING THIS SERVICE IN SOME PARTS OF THE COUNTRY AUTOMOTIVE MARKETING A TRADE PUBLICATION REPORTED LAST SUMMER THAT HI LO HAS BECOME THE KEY MOVER IN HOUSTON WHICH ITSELF HAS BECOME A MICROCOSM OF THE AUTO PARTS INDUSTRY WHERE ALL THE MAJOR PLAYERS BOTH RETAIL AND COMMERCIAL COMPETE THE PUBLICATION QUOTED ONE INDEPENDENT WHOLESALE DISTRIBUTOR COMMENTING ON HI LO'S ABILITY TO QUOTE DO EVERYTHING WE DO DELIVERIES SALESMEN RETURNS WITH SIXTY STORES NOW SEVENTY THEY'RE THE ONLY GAME IN TOWN IN THE PAST THREE YEARS COMMERCIAL SALES HAVE GROWN AS MUCH AS TWENTY FIVE PERCENT A YEAR COMPARED WITH VIRTUALLY FLAT RETAIL SALES GROWTH TODAY COMMERCIAL SALES ACCOUNT FOR ABOUT ONE THIRD OF THE COMPANY'S ANNUAL REVENUE A SURE SIGN OF STRENGTH NOTES ANALYST JAMES D. PARKER AT ATLANTA BASED ROBINSON HUMPHREY A REGIONAL BROKERAGE HOUSE WILL BE INCREASES IN HI LO'S MONTHLY SAME STORE SALES FIGURES THE COMPANY THIS YEAR HAS BUDGETED FOR MONTHLY SAMESTORE SALES GAINS OF ABOUT FIVE PERCENT ANALYSTS SAY THAT IS CONSERVATIVE AND FEASIBLE MR. PARKER LIKE MOST EXPECTS JANUARY SALES TO REMAIN FLAT BUT HE ADDS IT SHOULD PICK UP AFTER THAT TESORO PETROLEUM SAN ANTONIO LEAPED MORE THAN FORTY THREE PERCENT ON THE WEEK GAINING TWO POINT EIGHT SEVEN FIVE DOLLARS ON MORE THAN TWELVE TIMES THE STOCK'S TYPICAL DAILY VOLUME LATE LAST WEEK A GROUP INCLUDING NEW YORK BROKER DEALERS LOEB PARTNERS AND LOEB ARBITRAGE FUND SAID IT HAD ACQUIRED A FIVE POINT FOUR PERCENT STAKE IN THE COMPANY'S CUMULATIVE PREFERRED STOCK FOR INVESTMENT PURPOSES THAT SAME DAY THE COMPANY REPORTED THAT UNAUDITED NET INCOME FOR THE FOURTH QUARTER WAS SIXTEEN POINT SIX MILLION DOLLARS OR ONE DOLLAR A SHARE COMPARED WITH A LOSS OF TWENTY FOUR POINT NINE MILLION DOLLARS OR ONE DOLLAR AND NINETY THREE CENTS A SHARE A YEAR AGO ELECTROCOM AUTOMATION PULLED IN AS THE WEEK'S BIGGEST LOSER DROPPING NEARLY TWENTY NINE PERCENT TO SIX DOLLARS AND SEVENTY FIVE CENTS ON NEWS THAT A POSTAL CONTRACT THE ARLINGTON MAKER OF DOCUMENT PROCESSING SYSTEMS SOUGHT WENT INSTEAD TO A UNIT OF INTERNATIONAL BUSINESS MACHINES CORPORATION A DAY LATER MERRILL LYNCH DOWNGRADED THE STOCK'S INTERMEDIATE INVESTMENT RATING TO NEUTRAL FROM ABOVE AVERAGE PITTENCRIEFF COMMUNICATIONS OF ABILENE LOST FOUR DOLLARS AND TWENTY FIVE CENTS OR NEARLY FIFTEEN PERCENT AFTER ANNOUNCING AN AGREEMENT IN PRINCIPLE TO ACQUIRE FROM ITS PARENT BRITAIN BASED PITTENCRIEFF P. L. C. MORE THAN SIX POINT THREE SIX MILLION SHARES OF PITTENCRIEFF COMMUNICATIONS STOCK CURRENTLY HELD BY THE PARENT WHICH IS LIQUIDATING ITS POSITION THE UNIT'S BUSINESS IS MOBILE RADIO COMMUNICATIONS SERVICES DALLAS BROKERAGE HOUSE RAUSCHER PIERCE REFSNES HELPED PUMP UP THE SHARE PRICE OF TETRA TECHNOLOGIES THE WOODLANDS MORE THAN TWENTY PERCENT BY RAISING ITS INVESTMENT RATING TO MARKET OUTPERFORMER FROM MARKET PERFORMER THE UPGRADE WAS BASED ON IMPROVED PROFITABILITY AND INCREASED VISIBILITY IN THE COMPANY'S WASTE TREATMENT DIVISION FAVORABLE TRENDS IN ITS NATURAL GAS DRILLING AND AN IMPROVING MARKET FOR HEAVY END BRINE FLUIDS CORNERSTONE IMAGING INCORPORATED SAID IT EXPECTS TO REPORT THAT FOURTH QUARTER EARNINGS GREW NEARLY FIVE FOLD TO BETWEEN ONE POINT FIVE FIVE MILLION DOLLARS AND ONE POINT SIX FIVE MILLION DOLLARS OR TWENTY ONE CENTS TO TWENTY TWO CENTS A SHARE REFLECTING VIGOROUS DEMAND FOR ITS DOCUMENT IMAGING EQUIPMENT THE ESTIMATED RESULTS EXCEED ANALYSTS' EXPECTATIONS OF NINETEEN CENTS TO TWENTY CENTS A SHARE SAID THOMAS VAN OVERBEEK PRESIDENT AND CHIEF EXECUTIVE OFFICER ACTUAL RESULTS FOR THE PERIOD WILL BE RELEASED FEBRUARY EIGHTH NET INCOME WAS THREE HUNDRED TWENTY THREE THOUSAND DOLLARS OR SIX CENTS A SHARE A YEAR EARLIER SALES IN THE QUARTER IT IS ESTIMATED DOUBLED TO BETWEEN FOURTEEN POINT FIVE MILLION DOLLARS AND FIFTEEN MILLION DOLLARS UP FROM SEVEN POINT FOUR MILLION DOLLARS A YEAR EARLIER MR. VAN OVERBEEK SAID DOCUMENT IMAGE PROCESSING OR THE USE OF A COMPUTER FOR PAPERWORK THAT HAS BEEN CONVERTED TO DIGITIZED COMPUTER DATA IS A FAST GROWING BUSINESS CORNERSTONE IS BENEFITING THROUGH ITS SALE OF PERIPHERAL EQUIPMENT FOR SUCH SYSTEMS INCLUDING HIGH RESOLUTION MONITORS SOFTWARE AND CONTROL SYSTEMS WHO WOULD HAVE THOUGHT HOME EQUITY LOANS COULD BE SUCH AN EMOTIONAL ISSUE BUT AS A LEGISLATIVE PANEL TRAVERSES THE STATE HOLDING HEARINGS OVER WHETHER TEXAS SHOULD JOIN THE REST OF THE NATION AND ALLOW HOMEOWNERS TO BORROW FREELY AGAINST THE EQUITY IN THEIR HOUSES YOU CAN ALMOST HEAR THE VIOLINS BEGIN TO SWELL REALTORS AND HOME BUILDERS WARN THAT HOMEOWNERS WOULD QUICKLY FIND THEMSELVES TRAPPED BY DEBT ADVOCACY GROUPS TUG AT THE HEARTSTRINGS DARKLY HINTING THAT ELDERLY OR UNSOPHISTICATED CONSUMERS MIGHT WIND UP HOMELESS BUT NOW LIKE A BRICK THROUGH A WINDOW THE FEDERAL RESERVE BANK OF DALLAS HAS HEAVED SOMETHING UNUSUAL INTO THE DEBATE FACTS IN A STUDY PUBLISHED IN THE LATEST QUOTE FINANCIAL INDUSTRY ISSUES QUOTE REPORT FORMER FED ECONOMIST LINDA M. HOOKS BLOWS GAPING HOLES IN THE ARGUMENT THAT HOME EQUITY LOANS CARRY UNDUE RISK FOR BORROWERS OR BANKS INDEED HER ANALYSIS OF LOAN PORTFOLIOS OF BANKS OUTSIDE OF TEXAS SUGGESTS THAT HOME EQUITY LINES HAVE THE LOWEST DELINQUENCY RATE OF ALL LOAN CATEGORIES OVERALL JUST ZERO POINT SIX THREE PERCENT OF HOME EQUITY LINES OF CREDIT WERE CLASSIFIED AS NONCURRENT IN LAST YEAR'S THIRD QUARTER MEANING THEY WERE AT LEAST NINETY DAYS PAST DUE OR THAT BANKS HAD STOPPED ACCRUING INTEREST ON THEM BY CONTRAST THE AVERAGE NONCURRENT RATE OF ALL LOANS WAS TWO POINT FIVE EIGHT PERCENT THAT WAS A SURPRISING RESULT SAYS DOCTOR HOOKS WHO IS CURRENTLY A PROFESSOR OF MONEY AND BANKING AT WASHINGTON AND LEE UNIVERSITY LEXINGTON VIRGINIA WE KNEW HOME EQUITY LOANS WOULD BE GOOD BUT THESE WERE QUITE GOOD EVEN MORE SURPRISING IS HOW WELL HOME EQUITY LOANS PERFORMED IN ECONOMICALLY DEPRESSED REGIONS OF THE COUNTRY IN THE PACIFIC CENSUS REGION WHICH IS DOMINATED BY CALIFORNIA JUST ZERO POINT FIVE NINE PERCENT OF HOME EQUITY LOANS WEREN'T CURRENT COMPARED WITH THREE POINT TWO NINE PERCENT FOR ALL LOANS SIMILAR PERFORMANCE HOLDS FOR THE TROUBLED MIDDLE ATLANTIC AND NEW ENGLAND REGIONS I THINK THE MOST IMPORTANT THING IS THAT EVEN IN ECONOMIC DOWNTURNS CONSUMERS DON'T SEEM TO BE OVERBURDENED BY HOME EQUITY LOANS DOCTOR HOOKS SAYS THE STUDY ALSO POINTS OUT THAT DESPITE ALL THE BROUHAHA IN TEXAS HOME EQUITY LOANS ACTUALLY REPRESENT JUST SIX PERCENT OF BANKS' TOTAL LOAN PORTFOLIO HARDLY THE KIND OF NUMBER THAT WOULD ROIL THE TEXAS FINANCIAL SYSTEM SO THE DOWNSIDE OF HOME EQUITY LOANS IS LIMITED BUT WHAT ARE THE BENEFITS FIRST IT HELPS TO KNOW THAT SUCH LOANS COME IN TWO BASIC FLAVORS ONE IS A TRADITIONAL SECOND MORTGAGE A FIXED AMOUNT LOAN EXTENDED FOR A SPECIFIED PERIOD THAT GENERALLY REQUIRES MONTHLY PAYMENTS TEXAS LAW ALLOWS FOR THIS TYPE OF LOAN BUT ONLY IF THE PROCEEDS ARE USED FOR HOME IMPROVEMENTS OR TO PAY BACK TAXES THE SECOND VERSION IS THE HOME EQUITY LINE OF CREDIT THESE ARE TYPICALLY SET UP AS REVOLVING ACCOUNTS THAT PERMIT BORROWING UP TO THE AMOUNT OF THE CREDIT LINE WITH FLEXIBLE REPAYMENT SCHEDULES AND VARIABLE INTEREST RATES LIKE A CREDIT CARD BACKED BY REAL ESTATE THE ADVANTAGE OF BOTH TYPES OF LOANS IS THAT THEY CARRY MUCH LOWER INTEREST RATES THAN OTHER TYPICAL CONSUMER LOANS BECAUSE THEY ARE SECURED BY COLLATERAL A HOUSE FOR INSTANCE WHILE YOU MIGHT PAY MORE THAN FIFTEEN PERCENT INTEREST ON OUTSTANDING CREDIT CARD DEBT HOME EQUITY LINES RUN CLOSER TO SEVEN PERCENT AND THOSE FIGURES ACTUALLY UNDERSTATE THE ADVANTAGES THAT'S BECAUSE THE TAX REFORM ACT OF NINETEEN EIGHTY SIX PHASED OUT INTEREST DEDUCTIONS FOR CONSUMER LOANS BUT STILL ALLOWS A WRITE OFF FOR HOME MORTGAGES NOT SURPRISINGLY ONE OF THE MAIN USES FOR BOTH TYPES OF HOME EQUITY LOANS IS TO PAY OFF OTHER DEBTS ACCORDING TO A SEPARATE FED STUDY THIRTY FIVE PERCENT OF SECOND MORTGAGES AND THIRTY EIGHT PERCENT OF CREDIT LINES WENT TOWARD CONSOLIDATING OTHER DEBTS THE OTHER MAJOR USE WAS HOME IMPROVEMENT BUT THAT'S ECONOMICS NOW FOR POLITICS OPPOSITION RUNS DEEP TO ANY LAW THAT WOULD MAKE IT EASIER FOR BANKS TO SINK THEIR CLAWS INTO BORROWERS' HOMES A SENTIMENT THAT DATES BACK TO THE EARLY DAYS OF THE REPUBLIC WHEN DEBTORS FLED HERE TO ESCAPE FINANCIAL WOES FANNING THE HOSTILITY BUILDERS WHO WORRY THAT BANKS WOULD FORCE THEM TO PLEDGE THE EQUITY IN THEIR OWN RESIDENCES AS ADDITIONAL COLLATERAL FOR DEVELOPMENT LOANS AND REAL ESTATE AGENTS WHO FEAR HOME SALES WOULD BE HAMPERED IF HOUSES CARRY TOO MANY LIENS IN RESPONSE THE TEXAS BANKERS ASSOCIATION HAS PROPOSED REFORM LANGUAGE THAT WOULD ALLOW GENERAL HOME EQUITY LENDING WHILE LEAVING TEXAS LAW THE MOST RESTRICTIVE IN THE COUNTRY SAYS ROBERT HARRIS PRESIDENT AMONG OTHER THINGS THE LANGUAGE WOULD PREVENT CROSS COLLATERALIZATION TO ASSUAGE THE HOME BUILDERS WOULD LIMIT TOTAL INDEBTEDNESS TO NINETY PERCENT OF A HOME'S VALUE AND WOULD GIVE HOMEOWNERS EIGHTEEN DAYS TO BACK OUT OF A LOAN IF THEY HAVE SECOND THOUGHTS JOHN MONTFORD THE STATE SENATOR WHO HEADS THE PANEL CONDUCTING THE HEARINGS SAYS CONSUMER PROTECTIONS WILL HAVE TO BE EVEN STRICTER BEFORE HE WILL BACK A CONSTITUTIONAL AMENDMENT EXPANDING HOME EQUITY LENDING YET DESPITE HIS MISGIVINGS HE SAYS I FIND SOME ILLOGIC IN PREVENTING THE PEOPLE OF TEXAS FROM DECIDING THIS COTTON FUTURES PRICES SET CONTRACT HIGHS FOR THE TENTH CONSECUTIVE DAY AS TRADERS TOOK STOCK OF THE DWINDLING GLOBAL SUPPLY OF COTTON AT NEW YORK'S COTTON EXCHANGE COTTON FOR MARCH DELIVERY WAS UP ZERO POINT SEVEN TWO CENT TO SEVENTY THREE POINT SEVEN EIGHT CENTS A POUND SETTING THE TONE FOR THE U. S. FUTURES MARKET IS THE UNEXPECTED PROSPECT OF STRONG DEMAND AMONG OVERSEAS IMPORTERS FOR U. S. GROWN COTTON THAT ANALYSTS SAY IS BECAUSE HIGH QUALITY COTTON IS IN SHORT SUPPLY THE U. S. AGRICULTURE DEPARTMENT'S ESTIMATE OF WORLD COTTON PRODUCTION HAS FALLEN TO EIGHTY POINT THREE MILLION BALES FROM EIGHTY FIVE POINT FOUR MILLION BALES ONLY SIX MONTHS AGO QUOTE ORIGINALLY THE U. S. WAS EXPECTED TO HAVE ANOTHER POOR SEASON OF SHIPMENTS WITH STRONG COMPETITION FOR A LIMITED DEMAND MARKET QUOTE SAID SANDRA KAUL SENIOR ANALYST FOR SMITH BARNEY SHEARSON BUT WE ARE SEEING A COMPLETE CHANGE IN THE OUTLOOK FOR U. S. EXPORTS IN THE SECOND HALF OF THE COTTON SEASON AMONG OTHER THINGS PAKISTAN ONE OF THE MAJOR INTERNATIONAL COMPETITORS FOR THE U. S. COTTON EXPORTING BUSINESS HAS HARVESTED A MUCH SMALLER THAN EXPECTED CROP THIS YEAR LAST AUGUST THE BEGINNING OF THE NINETEEN NINETY THREE TO NINETY FOUR GROWING SEASON PAKISTANI COTTON PRODUCTION HAD BEEN PEGGED AT ABOUT EIGHT POINT SEVEN MILLION BALES CURRENTLY HOWEVER THE U. S. AGRICULTURE DEPARTMENT IS FORECASTING A MUCH SMALLER PAKISTANI CROP OF ABOUT SIX POINT FIVE MILLION BALES AS A RESULT PAKISTAN WILL BECOME A NET IMPORTER OF COTTON THIS YEAR AND HAS CUT BACK ITS EXPORT SHIPMENTS MS. KAUL SAID NOR IS PAKISTAN THE ONLY COTTON PRODUCING COUNTRY EXPERIENCING SUPPLY PROBLEMS CHINA ALSO HAS A SMALLER THAN EXPECTED CROP THE AGRICULTURE DEPARTMENT WHICH ORIGINALLY ESTIMATED THE NINETEEN NINETY THREE TO NINETY FOUR CHINESE COTTON CROP AT TWENTY POINT SEVEN MILLION BALES NOW FORECASTS THE CROP AT EIGHTEEN POINT FIVE MILLION BALES MOST ANALYSTS EXPECT THE CHINESE CROP TO BE EVEN SMALLER THAN THAT MOST ESTIMATES OF CHINA'S PRODUCTION NOW RANGE FROM THIRTEEN POINT EIGHT MILLION TO FIFTEEN MILLION BALES INDIA ANOTHER COTTON PRODUCING COUNTRY ALSO HAS SUSPENDED SALES OF ITS REMAINING EXPORTABLE SUPPLY OF COTTON AND FARMERS IN AUSTRALIA WHICH IS THE ONLY MAJOR COTTON PRODUCER BESIDES THE U. S. THAT STILL HAS LARGE STOCKS OF COTTON HAVE HAD INSUFFICIENT RAIN FOR THE CROP THEY ARE NOW CULTIVATING THUS THE U. S. IS THE ONLY MAJOR PRODUCER STILL WELL POSITIONED TO ACCOMMODATE THE BURGEONING DEMAND FOR COTTON DESPITE THE FACT THAT THE U. S. CROP WAS ALSO SMALLER THAN EXPECTED THIS YEAR IN AUGUST THE AGRICULTURE DEPARTMENT PEGGED U. S. PRODUCTION AT EIGHTEEN POINT FIVE MILLION BALES THE DEPARTMENT IS NOW ESTIMATING THE CROP AT SIXTEEN POINT TWO MILLION BALES BAD WEATHER IN THE MISSISSIPPI DELTA GROWING REGIONS WAS LARGELY TO BLAME FOR THE SHORTFALL MS. KAUL SAID LUMBER FUTURES PRICES FELL AS BAD WEATHER RETURNED TO FORECASTS FOR MUCH OF THE NATION AT THE CHICAGO MERCANTILE EXCHANGE LUMBER FOR MARCH DELIVERY WAS DOWN THE PERMISSIBLE DAILY LIMIT OF TEN DOLLARS TO SETTLE AT FOUR HUNDRED SEVEN DOLLARS AND EIGHTY CENTS PER THOUSAND BOARD FEET THE COLD TEMPERATURES AND PRECIPITATION NOW FORECAST FOR MUCH OF THE MIDWEST AND WESTERN U. S. ARE LIKELY TO HAMPER CONSTRUCTION OF NEW HOMES ANALYSTS SAY THAT PROSPECT IS DRAWING DOWN PRICES ON THE CASH MARKET FOR LUMBER SAYS WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH ADDING THAT THE LUMBER MARKET IS VERY MUCH UNDER THE INFLUENCE OF WHAT CASH IS DOING IN THE SHORT TERM ORANGE JUICE FUTURES PRICES FELL AS THE ANNUAL NON FROST JANUARY SELL OFF CONTINUED AT THE COTTON EXCHANGE ORANGE JUICE FOR MARCH DELIVERY WAS DOWN TWO POINT TWO CENTS TO ONE POINT OH FOUR FOUR FIVE DOLLARS A POUND THE PEAK PERIOD FOR A FROST THAT COULD POTENTIALLY DAMAGE FLORIDA'S ORANGE CROP IS MID DECEMBER TO MID JANUARY EACH YEAR PRICES TEND TO RISE AT THE BEGINNING OF THIS PERIOD ON THE POSSIBILITY THAT A FREEZE MIGHT OCCUR IF AS IS THE CASE THIS YEAR A FROST FAILS TO DEVELOP WITHIN THIS PERIOD TRADERS TEND TO LIQUIDATE THEIR LONG POSITIONS OR BETS THAT FUTURES PRICES WILL RISE THE PROCESS OF SELLING FUTURES CONTRACTS TO LIQUIDATE LONG POSITIONS EXERTS DOWNWARD PRESSURE ON FUTURES PRICES YOU'VE ALWAYS SUSPECTED IT AND NOW YOU KNOW IT'S TRUE HOUSTONIANS LIKE TO FEEL ABOVE EVERYBODY ELSE EVEN WHEN THEY'RE SITTING IN A SOON TO BE RELEASED STUDY MICHAEL LYNN AN ASSISTANT PROFESSOR OF MARKETING AT THE UNIVERSITY OF HOUSTON FOUND THAT WAITERS IN TWO HOUSTON RESTAURANTS WHO SQUATTED BESIDE THEIR CUSTOMERS' TABLES RECEIVED HIGHER TIPS THAN THOSE WHO STOOD A MALE GRADUATE STUDENT WHO WAITED TABLES AT A MEXICAN CAFE TESTED TWO HUNDRED SEVENTY GROUPS OF CUSTOMERS SQUATTING FOR ABOUT HALF OF THEM THE RESULT HIS AVERAGE TIP CAME TO SEVENTEEN POINT FIVE PERCENT OF THE BILL WHEN HE SQUATTED COMPARED WITH FIFTEEN PERCENT WHEN HE STOOD IN A SIMILAR TEST AT A CHINESE RESTAURANT A FEMALE GRADUATE STUDENT RECEIVED AN AVERAGE TIP OF FIFTEEN PERCENT WHILE SQUATTING COMPARED WITH TWELVE PERCENT WHILE STANDING QUOTE SQUATTING IS FRIENDLIER QUOTE SAYS DOCTOR LYNN YOU INCREASE THE POSTURAL CONGRUENCE AND EYE CONTACT AND THAT RAISES THE LEVEL OF INTIMACY NOW FOR THE TOUGH QUESTION WHY WOULD ANYBODY STUDY THIS IN THE FIRST PLACE WELL BE ASSURED THAT THIS ISN'T YET ANOTHER DUBIOUS PROJECT FINANCED WITH FEDERAL GRANT MONEY NOBODY PAID FOR IT WE JUST DID IT SAYS DOCTOR LYNN AND THE REASON HE SAYS HE HAS BEEN CURIOUS ABOUT TIPPING TECHNIQUES EVER SINCE HE WAITED TABLES AT SEVERAL RESTAURANTS TO PUT HIMSELF THROUGH COLLEGE CAPITAL CITIES SLASH A. B. C. INCORPORATED REPORTED A TWENTY ONE PERCENT JUMP IN FOURTH QUARTER NET INCOME HELPED BY A PICKUP IN BROADCAST REVENUE FROM BOTH TELEVISION AND RADIO CAPITAL CITIES SAID FOURTH QUARTER NET WHICH WAS SLIGHTLY BETTER THAN EXPECTED CLIMBED TO ONE HUNDRED SIXTY SIX POINT SEVEN MILLION DOLLARS OR TEN DOLLARS AND THIRTY FIVE CENTS A SHARE FROM ONE HUNDRED THIRTY SEVEN POINT NINE MILLION DOLLARS OR EIGHT DOLLARS AND THIRTY EIGHT CENTS A SHARE IN THE YEAR EARLIER PERIOD IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SHARES OF CAPITAL CITIES ROSE ONE DOLLAR OR ZERO POINT TWO PERCENT TO CLOSE AT SIX HUNDRED SIXTY FOUR DOLLARS AFTER CLIMBING THREE DOLLARS AND FIFTY CENTS EARLIER IN THE DAY THE STOCK IS UP MORE THAN SEVEN PERCENT SO FAR THIS YEAR QUOTE THERE'S GOOD STRONG REVENUE GROWTH QUOTE SAID JAY NELSON AN ANALYST AT BROWN BROTHERS HARRIMAN AND COMPANY BETTER THAN EXPECTED TOP LINE REVENUE GROWTH IS WELCOME REVENUE IN THE FOURTH QUARTER WAS ONE POINT SEVEN SIX BILLION DOLLARS UP NEARLY SEVEN PERCENT FROM ONE POINT SIX FOUR BILLION DOLLARS REVENUE FROM BROADCASTING JUMPED A HEALTHY NINE PERCENT WHILE REVENUE FROM PUBLISHING EASED TWO POINT NINE PERCENT A. B. C. TELEVISION NETWORK IN PARTICULAR REPORTED BIG GAINS BECAUSE OF HIGHER RATINGS AND STRONGER ADVERTISING REVENUE A. B. C. RADIO NETWORKS ALSO PERFORMED STRONGLY ABOUT EIGHTY FIVE PERCENT OF THE COMPANY'S INCOME IS DERIVED FROM BROADCASTING THEY HAD AN ESPECIALLY STRONG QUARTER IN BROADCASTING SAID EDWARD HATCH AN ANALYST AT U. B. S. SECURITIES THEY HAD BETTER RATINGS AND TIGHT COST CONTROLS FOR THE FULL YEAR THE NEW YORK BASED MEDIA GIANT REPORTED NET INCOME OF FOUR HUNDRED FIFTY FIVE POINT THREE MILLION DOLLARS OR TWENTY SEVEN DOLLARS AND SEVENTY NINE CENTS A SHARE INCLUDING A CHARGE OF TWELVE POINT ONE MILLION DOLLARS OR SEVENTY FOUR CENTS A SHARE FOR EARLY DEBT REDEMPTIONS YEAR EARLIER EARNINGS WERE TWO HUNDRED FORTY SIX POINT ONE MILLION DOLLARS OR FOURTEEN DOLLARS AND EIGHTY TWO CENTS A SHARE INCLUDING A NONCASH ADJUSTMENT OF ONE HUNDRED FORTY THREE MILLION DOLLARS OR EIGHT DOLLARS AND SIXTY THREE CENTS A SHARE TO REFLECT A CHANGE IN ACCOUNTING FOR RETIREE BENEFITS AVERAGE SHARES DECLINED LAST YEAR AS A RESULT OF THE PURCHASE OF ONE POINT ONE MILLION SHARES IN DECEMBER THE COMPANY SAID IT EXPECTS TO CONTINUE TO REPURCHASE ITS SHARES ON THE OPEN MARKET REVENUE ROSE SIX POINT TWO PERCENT TO FIVE POINT SIX SEVEN BILLION DOLLARS FROM FIVE POINT THREE FOUR BILLION DOLLARS WHILE RATINGS HAVE BEEN ON THE UPSWING LOOKING AHEAD C. B. S. WILL STEAL THE SHOW WITH THE OLYMPICS IN THE FIRST QUARTER SAID MR. HATCH A DEBATE HAS BROKEN OUT IN RUSSIAN DIAMOND CIRCLES OVER HOW TO MAKE THE BEST USE OF ONE OF THE NATION'S GREATEST SOURCES OF WEALTH THE HIGHLY SECRETIVE RUSSIAN DIAMOND INDUSTRY HAS TO DECIDE WHETHER IT WOULD BE BEST SERVED BY CONTINUING TO SELL NEARLY ALL OF ITS ROUGH GEM QUALITY DIAMONDS THROUGH SOUTH AFRICA BASED DE BEERS CONSOLIDATED MINES LIMITED OR BY TAKING A MORE INDEPENDENT APPROACH THE DISPUTE LIES BEHIND A RECENT OUTFLOW OF RUSSIAN ROUGH DIAMONDS THAT HAS SPARKED ACCUSATIONS OF DUMPING AND STRAINED MOSCOW'S RELATIONS WITH DE BEERS IT ALSO HAS DRAWN DIAMOND MERCHANTS TO MOSCOW IN SEARCH OF NEW BUSINESS RUSSIA'S DECISION ULTIMATELY COULD ROCK WORLD DIAMOND MARKETS QUOTE DE BEERS IS ABSOLUTELY DOMINANT ALTHOUGH NOT ALL ALONE QUOTE SAID CHAIM EVEN ZOHAR A DIAMOND EXPERT WHO PUBLISHES AN INFLUENTIAL INDUSTRY MAGAZINE IN TEL AVIV BUT THEY CAN'T DICTATE AS IN THE PAST AND MOSCOW IS A GOOD EXAMPLE OF THAT RUSSIA IS UNDER CONTRACT TO FUNNEL TO DE BEERS NINETY FIVE PERCENT OF ITS UNCUT DIAMONDS UNTIL MID NINETEEN NINETY FIVE THE REMAINDER CAN BE SOLD INDEPENDENTLY SUBJECT TO RESTRICTIONS ON PRICES VOLUME AND SELLING SITES SOME RUSSIAN DIAMOND OFFICIALS SAY THAT THE TERMS OF THAT CONTRACT SHOULD BE RENEGOTIATED AT THE SAME TIME RUSSIA NEEDS CASH AND GOVERNMENT OFFICIALS HAVE SAID RUSSIA MIGHT SEEK FOREIGN LOANS USING STOCKPILED UNCUT DIAMONDS AS COLLATERAL THE IDEA OF COLLATERALIZING STOCKPILED DIAMONDS HAS BROUGHT RUSSIAN OFFICIALS ABOUT A DOZEN PROPOSALS FROM FOREIGN DIAMOND MERCHANTS ON HOW TO MARKET RUSSIA'S DIAMONDS IN THE FUTURE SOME OF THESE OFFERS HINGE ON RAISING LOANS FOR A FEE OTHERS IN EXCHANGE FOR ACCESS TO A SHARE OF RUSSIA'S UNCUT DIAMONDS WHOEVER COULD ARRANGE SUCH AN AGREEMENT WOULD STAND TO GAIN MILLIONS OF DOLLARS PLUS A FOOTHOLD IN THE RUSSIAN DIAMOND INDUSTRY WHICH ACCOUNTS FOR A QUARTER OF THE WORLD'S ROUGH DIAMOND PRODUCTION ONE CONFIDENTIAL PROPOSAL MADE TO THE GOVERNMENT IN DECEMBER CAME FROM NEW YORK BASED LAZARE KAPLAN INTERNATIONAL A DIAMOND MERCHANT THAT HAS BEEN DOING BUSINESS IN RUSSIA FOR MORE THAN TWENTY YEARS IT SUGGESTS RAISING THREE POINT THREE BILLION DOLLARS IN TEN YEAR LOANS PROBABLY FROM THE U. S. GOVERNMENT AND PROPOSES A ONE POINT FIVE PERCENT FEE FOR LAZARE KAPLAN THE CONCEPT WOULD ALLOW DE BEERS TO CONTINUE ITS EXCLUSIVE RUSSIAN PURCHASES THE PROPOSAL DOESN'T EXPLAIN HOW LAZARE KAPLAN WOULD GO ABOUT SECURING SUCH FUNDS FROM THE U. S. GOVERNMENT OR MULTILATERAL ORGANIZATIONS WHICH DON'T GENERALLY MAKE COLLATERALIZED LOANS NOR DOES IT GUARANTEE THAT IT COULD DO SO BUT IT SAYS THAT INITIAL APPROACHES HAVE BEEN MADE THE PROPOSAL IS BEING TAKEN SERIOUSLY IN PART BECAUSE THE CHAIRMAN OF THE COMPANY MAURICE TEMPELSMAN IS WELL KNOWN FOR HIS CONNECTIONS TO THE POLITICALLY PROMINENT KENNEDY FAMILY AND PRESIDENT CLINTON RUSSIAN OFFICIALS ARE FAMILIAR WITH STORIES OF THE U. S. PRESIDENT'S RELAXING ABOARD THE TEMPELSMAN YACHT LAST SUMMER IN MASSACHUSETTS WITH FORMER FIRST LADY JACQUELINE ONASSIS WITH ITS DIAMOND PRODUCTION LEVELS GEOLOGICAL RESERVES STOCKPILES AND CUTTING FACILITIES RUSSIA'S DIAMOND INDUSTRY STANDS CENTRAL BOTH INTERNATIONALLY AND WITHIN THE RUSSIAN ECONOMY SAYS LAZARE KAPLAN INTERNATIONAL SPOKESMAN ROBERT KASMIRE DECISIONS CONCERNING THAT INDUSTRY'S FUTURE ARE AMONG THE MOST IMPORTANT AND APPROPRIATE TO BE MADE BY THE RUSSIAN GOVERNMENT SUCH A PROPOSAL COULD SUPPORT THE STATUS QUO AND ASSURE DE BEERS OF ANOTHER DECADE'S HOLD OVER THE RUSSIAN MARKET DE BEERS'S DEPUTY GENERAL MANAGER IN MOSCOW ALAN CAMPBELL SAID DE BEERS ITSELF HAD NOTHING TO DO WITH THE PROPOSAL OTHER POSSIBILITIES WOULD WEAN RUSSIA FROM DE BEERS'S EXCLUSIVE MARKETING BY SEEKING NONEXCLUSIVE RIGHTS TO BUY PART OF RUSSIA'S UNCUT DIAMOND SUPPLY IN EXCHANGE FOR A COMMERCIAL LOAN COLLATERALIZED BY THE DIAMOND STOCKPILE OR BY ADVOCATING THAT RUSSIA FUNNEL MORE OF ITS ROUGH PRODUCT TO ITS OWN POLISHING INDUSTRY IN ORDER TO SELL THE MORE EXPENSIVE POLISHED GEMS ITSELF THE LATTER IDEA WOULDN'T CONTRAVENE DE BEERS'S CONTRACT WHICH DOESN'T COVER POLISHED GEMS I HAD A DREAM THAT SOMEDAY WE WOULD POLISH RUSSIAN ROUGH WITH RUSSIAN WORKERS IN A JOINT PARTNERSHIP WITH THE RUSSIANS IN RUSSIA AND TODAY IT IS A REALITY SAYS JOSEF KASZIRER HEAD OF ANTWERP BELGIUM BASED KASZIRER DIAMONDS MR. KASZIRER USED TO BE ONE OF DE BEERS'S FAVORED BUYERS BUT SAYS HE WAS EXCLUDED IN NINETEEN NINETY TWO AFTER HE SET UP A JOINT VENTURE WITH RUSSIA TO DEVELOP THE DOMESTIC POLISHING INDUSTRY DE BEERS CONTROLS MORE THAN EIGHTY PERCENT OF THE WORLD'S ROUGH DIAMOND MARKET DIAMOND PRODUCERS WHO WORK WITH DE BEERS GENERALLY AGREE TO SELL ALL OF THEIR DIAMONDS THROUGH THE SOUTH AFRICAN CONCERN UNDER A SYSTEM KNOWN AS QUOTE SINGLE CHANNEL MARKETING QUOTE DE BEERS MIXES DIAMONDS FROM AROUND THE WORLD INTO ASSORTMENTS FOR BUYERS AND RELEASES ONLY AS MANY AS IT CALCULATES WON'T DISRUPT PRICES PRODUCERS AGREE TO ACCEPT A QUOTA OF WORLD SALES AS THEIR SHARE OF THE MARKET TWENTY SIX PERCENT IN RUSSIA'S CASE WHICH DE BEERS PROMISES TO BUY THE SYSTEM HAS SERVED TO KEEP THE DIAMOND MARKET STEADY THROUGH NUMEROUS RECESSIONS SATISFYING MANY SUPPLIERS AND MIDDLEMEN BUT AS A RESULT THE DE BEERS CARTEL HAS HAD THE UPPER HAND IN DIAMOND DEVELOPMENT POLICY IN PRODUCING COUNTRIES RUSSIA HAS LARGELY MANAGED TO AVOID THE TEMPTATION OF SELLING OFF MASSES OF ITS DIAMONDS FOR A QUICK INFUSION OF CASH LAST YEAR IT EARNED AT LEAST ONE POINT FIVE BILLION DOLLARS FROM DIAMOND EXPORTS INCLUDING ONE POINT ONE FOUR BILLION DOLLARS FROM ROUGH GEMS SOLD THROUGH DE BEERS AND THE REST FROM SALES OF INDUSTRIAL AND POLISHED DIAMONDS RUSSIAN DIAMOND AUTHORITIES HAVE ALWAYS BEEN VERY PRUDENT AND UNDERSTAND THE NEED TO PLAY THEIR ROLE IN KEEPING THE MARKET STABLE DE BEERS'S MR. CAMPBELL SAID BUT NOW DIAMOND OFFICIALS ARE SPLIT OVER WHETHER WORKING THROUGH DE BEERS IS STILL IN RUSSIA'S BEST INTERESTS ONE OF THE TWO KEY STRUCTURES DEALING WITH ROUGH DIAMONDS IN RUSSIA IS THE STATE CONTROLLED JOINT STOCK COMPANY ALMAZY ROSSII SAKHA IT HAS RESPONSIBILITY FOR EXPORTING ROUGH RUSSIAN DIAMONDS AND FAVORS STICKING WITH DE BEERS BUT OFFICIALS AT KOMDRAGMET THE STATE COMMITTEE FOR PRECIOUS METALS AND STONES THAT CONTROLS THE NATION'S DIAMOND STOCKPILES SAY THAT RUSSIA MAY DO BETTER BY EXPORTING A GREATER PROPORTION OF ITS UNCUT DIAMONDS ITSELF AND BY FUNNELING MORE TO ITS POLISHING INDUSTRY DE BEERS DEVELOPED A BRILLIANT SCHEME BUT AS WITH ANY SYSTEM IT BECOMES OUTDATED PHYSICALLY AND MORALLY SAID KOMDRAGMET DEPUTY CHAIRMAN LEONID GURYEVICH OUR GOAL ISN'T TO CHANGE RELATIONS WITH DE BEERS IT'S TO DETERMINE THE OPTIMAL LEVEL FROM THE POINT OF VIEW OF HARD CURRENCY EARNINGS OF WHAT TO DO WITH OUR RAW MATERIALS THE FEDERAL TRADE COMMISSION CHARGED A BAUSCH AND LOMB INCORPORATED UNIT WITH VIOLATING A COMMISSION ORDER AGAINST MAKING FALSE CLAIMS ABOUT ITS HEARING AID THE COMMISSION SAID THE UNIT DAHLBERG INCORPORATED CLAIMED IN A NATIONAL ADVERTISING CAMPAIGN THAT ITS MIRACLE EAR CLARIFIER WOULD AMPLIFY SOUNDS THE USER WANTED TO HEAR SUCH AS SPEECH AND REDUCE UNWANTED BACKGROUND NOISE THE AGENCY SAID THE CLAIMS ARE FALSE AND VIOLATE THE TERMS OF A NINETEEN SEVENTY SIX SETTLEMENT BETWEEN DAHLBERG AND THE F. T. C. THAT PROHIBITED THE COMPANY FROM MAKING FALSE CLAIMS ABOUT ITS HEARING AIDS THE F. T. C. ASKED THE U. S. DISTRICT COURT IN MINNEAPOLIS TO PROHIBIT DAHLBERG BASED IN GOLDEN VALLEY MINNESOTA FROM MAKING SIMILAR FALSE CLAIMS AND TO ORDER THE COMPANY TO PAY SUBSTANTIAL CIVIL PENALTIES DAHLBERG DISPUTED THE F. T. C.'S CHARGES SAYING IT BELIEVES ITS ADVERTISING FOR THE CLARIFIER IS SUBSTANTIATED IT FILED SUIT LAST WEEK IN A FEDERAL COURT IN MINNESOTA CONTENDING THAT THE F. T. C. QUOTE HAS NO AUTHORITY TO REGULATE PERFORMANCE AND USE CLAIMS MADE BY HEARING AID MANUFACTURERS IN THEIR ADVERTISING QUOTE AND THAT JURISDICTION FOR SUCH ISSUES LIES WITH THE U. S. FOOD AND DRUG ADMINISTRATION DAHLBERG ADDED THAT THE F. D. A. IS CONSIDERING ADOPTING CLEARER GUIDELINES FOR HEARING AID ADVERTISING SALES AND DISTRIBUTION AND THAT IT IS COOPERATING FULLY BAUSCH AND LOMB ACQUIRED DAHLBERG LAST SUMMER BUT THE F. T. C.'S INVESTIGATION OF DAHLBERG HAD LED THE ROCHESTER N. Y. COMPANY TO LOWER ITS OFFER TO ONE HUNDRED THIRTY NINE MILLION DOLLARS FROM ONE HUNDRED FIFTY EIGHT MILLION DOLLARS LAST YEAR THE F. D. A. ALSO SENT LETTERS TO DAHLBERG AND SIX OTHER HEARING AID MAKERS WARNING THAT THEIR CLAIMS ABOUT SIMILAR DEVICES COULD LEAD TO FEDERAL CHARGES COMMISSION OFFICIALS SAID MOST OF THE ADS HAVE BEEN WITHDRAWN THE F. T. C. CHARGES AGAINST DAHLBERG STEM FROM ADS THAT APPEARED FROM NINETEEN EIGHTY EIGHT THROUGH NINETEEN NINETY TWO NOW THAT PRESIDENT CLINTON HAS URGED CONGRESS AND THE NATION TO TAKE ON THE BIG AND IMPORTANT ISSUES TAKE A MOMENT TO PONDER THE SMALL AND IMPORTANT ISSUE OF MANSOUR EL KIKHIA AT A TIME WHEN AMERICANS ARE INCREASINGLY INCLINED TO TURN INWARD HIS STORY OFFERS A POIGNANT REMINDER THAT OUTLAW REGIMES ARE STILL PROWLING THE WORLD AND THAT THE U. S. STILL HAS A SPECIAL RESPONSIBILITY TO STAND UP TO THEM MANSOUR EL KIKHIA IS AN AMERICAN RESIDENT AND STRUGGLING BUSINESSMAN MORE IMPORTANT HE ONCE WAS LIBYA'S FOREIGN MINISTER AND UNITED NATIONS AMBASSADOR A DECADE AGO HE BROKE AWAY FROM THE MADCAP REGIME OF MOAMMAR GADHAFI AND WENT INTO EXILE TO OPPOSE IT LAST MONTH A STRANGE THING HAPPENED TO MR. KIKHIA WHILE IN CAIRO TO ATTEND A HUMAN RIGHTS CONFERENCE HE SIMPLY DISAPPEARED FROM HIS HOTEL IT'S PRETTY CLEAR HE DIDN'T LEAVE VOLUNTARILY THOUGH HE'S A DIABETIC THE INSULIN AND SYRINGES HE DEPENDS ON WERE LEFT BEHIND TO ANYONE WHO HAS FOLLOWED THE GADHAFI REGIME THIS DOESN'T LOOK LIKE MUCH OF A MYSTERY THERE SEEMS LITTLE DOUBT THAT AGENTS ACTING ON BEHALF OF LIBYA ABDUCTED MR. KIKHIA TO SILENCE HIM MR. KIKHIA'S FAMILY IS CONVINCED HE WAS SPIRITED OUT OF EGYPT AND INTO NEIGHBORING LIBYA A COUSIN LIVING IN TEXAS WHO ALSO IS NAMED MANSOUR EL KIKHIA SAYS HE WAS TOLD BY A RELIABLE SOURCE THIS WEEK THAT THE DISSIDENT WAS SEEN BEING LED OUT OF AN AIRPLANE IN THE LIBYAN CAPITAL OF TRIPOLI SHORTLY AFTER HIS CAPTURE LIBYA HAS A WELL DOCUMENTED HISTORY OF THIS KIND OF POLITICAL TERRORISM SINCE NINETEEN EIGHTY SIX THE STATE DEPARTMENT SAYS LIBYAN AGENTS HAVE MURDERED ANTI GADHAFI EXILES IN ITALY GREECE AND FRANCE AND TRIED UNSUCCESSFULLY IN AUSTRIA TWO OTHER DISSIDENTS DISAPPEARED IN EGYPT A FEW YEARS AGO WITH THAT KIND OF RECORD COLONEL GADHAFI DOESN'T DESERVE THE BENEFIT OF THE DOUBT NOW BY SHEER COINCIDENCE PRESIDENT CLINTON'S NATIONAL SECURITY ADVISER ANTHONY LAKE HAS A PASSING ACQUAINTANCE WITH THE KIKHIA FAMILY AND THAT HAS HELPED PUT THIS CASE ON THE WHITE HOUSE RADAR SCREEN PRESIDENT CLINTON HAS WRITTEN A PERSONAL LETTER TO EGYPTIAN PRESIDENT HOSNI MUBARAK ASKING EGYPT TO HELP TRACK DOWN MR. KIKHIA OTHERWISE THE WORLD HAS LITTLE NOTICED YET THE KIKHIA CASE SHOULDN'T SIMPLY BE FORGOTTEN FOR ONE THING IT ARISES JUST AS LIBYA IS CONDUCTING A CONCERTED CAMPAIGN TO WRIGGLE OUT OF U. N. ECONOMIC SANCTIONS IMPOSED BECAUSE OF ITS REFUSAL TO HAND OVER TWO LIBYAN AGENTS CHARGED WITH BLOWING UP THE PAN AM ONE HUNDRED THREE JETLINER OVER SCOTLAND FIVE YEARS AGO IF THE WORLD COMMUNITY NEEDED ANY NEW MOTIVATION TO KEEP THE SCREWS TURNED ON LIBYA MR. KIKHIA SHOULD PROVIDE IT THE U. S. CAN MAKE IT CLEAR THAT IN ADDITION TO ACTION ON THE PAN AM ONE HUNDRED THREE FRONT IT WANTS MR. KIKHIA ACCOUNTED FOR BEFORE ANY EASING OF PRESSURE SECOND THE KIKHIA CASE IS A REMINDER THAT THE PRACTICE OF SIMPLY RUBBING OUT POLITICAL OPPONENTS ABROAD IS BECOMING DISTRESSINGLY COMMON IRAN DOES IT SYSTEMATICALLY AND NOW THERE IS A QUOTE SIGNIFICANT CONCERN QUOTE IN THE AMERICAN INTELLIGENCE COMMUNITY QUOTE THAT IF GADHAFI GETS AWAY WITH THIS ONE HE HAS OTHER SCORES TO SETTLE AS WELL QUOTE SAYS HENRY SCHULER A FRIEND OF THE KIKHIA FAMILY AND A LIBYA ANALYST AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES THE U. S. HAS A PARTICULAR OBLIGATION TO ACT WHEN AMERICAN RESIDENTS ARE HURT BY THIS KIND OF LAWLESSNESS BUT IT SHOULD BE VOCAL EVEN IN CASES THAT HAVE NOTHING TO DO WITH AMERICANS CLINTON ADMINISTRATION FOREIGN POLICY IS BASED ON THE PREMISE THAT THE POST COLD WAR WORLD WILL BE MORE STABLE IF THE FAMILY OF DEMOCRACIES IS ENLARGED BUT DEMOCRACY WON'T EXPAND IF DEMOCRATIC VOICES CAN BE SNUFFED OUT THE KIKHIA ABDUCTION ALSO LEAVES A CLOUD HANGING OVER EGYPT SOME OF MR. KIKHIA'S FRIENDS SUSPECT HE COULDN'T HAVE BEEN ABDUCTED UNLESS SOMEBODY IN THE EGYPTIAN SECURITY SERVICE AT LEAST LOOKED THE OTHER WAY EGYPTIAN OFFICIALS PASSIONATELY DISPUTE THAT THEY ARGUE THAT EGYPTIANS HAVE NO REASON TO TOLERATE TERRORISM AT A TIME WHEN TERRORIST ATTACKS ARE SCARING OFF MILLIONS OF BADLY NEEDED TOURIST DOLLARS FROM EGYPT EGYPT INSISTS IT IS DOING ALL IT CAN TO FIND MR. KIKHIA INCLUDING PRESSING LIBYA BUT THE KIKHIA CASE OUGHT TO PROMPT EGYPT TO RECONSIDER THE SYMPATHETIC STANCE IT HAS TAKEN TOWARD LIBYA'S ACTIONS IN THE PAN AM ONE HUNDRED THREE STANDOFF EGYPT'S STRATEGY IS TO PREVENT NEIGHBORING LIBYA FROM BECOMING EVEN MORE ISOLATED IT WORRIES THAT HARSHER ECONOMIC SANCTIONS ON LIBYA WOULD SEND THOUSANDS OF EGYPTIANS WHO NOW WORK THERE STREAMING HOME JOBLESS AND MANY EGYPTIANS FIGURE THAT BAD AS THE GADHAFI REGIME MAY BE IT COULD BE REPLACED BY SOMETHING WORSE PERHAPS A RADICAL ISLAMIC GOVERNMENT IF IT IS BROUGHT DOWN BUT UNDERSTANDABLE AS THOSE CONCERNS MAY BE AT SOME POINT THERE'S A PRICE TO BE PAID FOR ASSOCIATING WITH OUTLAWS SPAIN'S PRODUCER PRICE INDEX ROSE THREE POINT TWO PERCENT IN NOVEMBER NINETEEN NINETY THREE FROM A YEAR EARLIER THE NATIONAL STATISTICS INSTITUTE SAID PRICES OF CONSUMER GOODS IN NOVEMBER POSTED THE BIGGEST YEAR ON YEAR INCREASE SURGING FOUR POINT THREE PERCENT FROM NOVEMBER NINETEEN NINETY TWO AND CLIMBING ZERO POINT TWO PERCENT IN NOVEMBER FROM OCTOBER OTHER MANUFACTURING INDUSTRIES SHOWED A JUMP OF FOUR POINT TWO PERCENT IN NOVEMBER FROM A YEAR EARLIER AND CLIMBED ZERO POINT FOUR PERCENT IN NOVEMBER FROM OCTOBER IN RESPONSE TO YOUR JANUARY TENTH EDITORIAL QUOTE SEGREGATED AND UNEQUAL QUOTE WHICH PRESENTS YOUR APPARENT OPPOSITION TO TAKING RACE INTO ACCOUNT IN SEEKING TO REMEDY RACIAL DISCRIMINATION IN VOTING YOU NOTE THAT I WITHDREW FROM CONSIDERATION FOR THE POSITION OF ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS AND ASSERT THAT I QUOTE DECLINED TO STRONGLY SUPPORT THE CONTINUED DRAWING OF RACE CONSCIOUS DISTRICTS QUOTE VIRTUALLY THE SAME ASSERTION WAS MADE IN A DECEMBER TWENTY SEVENTH EDITORIAL PAGE PIECE BY CAROL SWAIN NEITHER YOUR EDITORIAL WRITER NOR MS. SWAIN CONTACTED ME IF THEY HAD THEY WOULD HAVE LEARNED THAT I HOLD THE OPPOSITE VIEW I BELIEVE THAT RACE CONSCIOUS REMEDIES ARE OFTEN NECESSARY TO REDRESS RACIAL DISCRIMINATION I HAVE DEFENDED MANY RACE CONSCIOUS PROGRAMS DESIGNED TO REMEDY DISCRIMINATION INCLUDING RICHMOND'S PROGRAM IN THE SUPREME COURT IN RICHMOND V. CROSON THIS IS ESPECIALLY THE CASE WITH RESPECT TO RACIAL DISCRIMINATION IN THE POLITICAL PROCESS WHERE A WELL DOCUMENTED AND OVERWHELMING HISTORY OF RACIAL DISCRIMINATION CAUSED CONGRESS TO ADOPT AND THEN TO EXTEND THE VOTING RIGHTS ACT THE ACT EXPLICITLY PROVIDES A REMEDY FOR MEMBERS OF RACIAL GROUPS THAT HAVE LESS OPPORTUNITY THAN OTHER MEMBERS OF THE ELECTORATE TO PARTICIPATE IN THE POLITICAL PROCESS AND TO ELECT REPRESENTATIVES OF THEIR CHOICE THE JURISDICTION YOU FOCUSED ON THE FOURTH CONGRESSIONAL DISTRICT OF LOUISIANA WAS DRAWN FOR THE SPECIFIC PURPOSE OF REMEDYING LOUISIANA'S LONGSTANDING EXCLUSION OF BLACK PEOPLE FROM THE POLITICAL PROCESS LOUISIANA HAS HAD A SUBSTANTIAL BLACK POPULATION FOR MORE THAN TWO CENTURIES AT PRESENT ITS POPULATION IS THIRTY PERCENT BLACK NEVERTHELESS FROM RECONSTRUCTION TO NINETEEN NINETY MORE THAN ONE HUNDRED YEARS NO BLACK PERSON HAD BEEN ELECTED TO CONGRESS FROM LOUISIANA THE VOTING RIGHTS ACT WAS PASSED TO DEAL WITH PRECISELY THIS TYPE OF SITUATION AND BECAUSE OF ITS APPLICATION TWO OF THE SEVEN CONGRESSIONAL DISTRICTS IN LOUISIANA ARE NOW REPRESENTED BY BLACK PEOPLE WE ALL WISH FOR THE DAY WHEN RACE NO LONGER PLAYS THE PERNICIOUS ROLE THAT IT CONTINUES TO PLAY IN OUR SOCIETY THE CHALLENGE IS TO BRING THAT DAY CLOSER THE ONLY WAY TO ENSURE THAT IS TO USE ALL OF THE TOOLS AVAILABLE TO ELIMINATE THE EFFECTS OF RACIAL DISCRIMINATION IN OUR SOCIETY THE VOTING RIGHTS ACT IS SUCH A TOOL IT MUST BE VIGOROUSLY ENFORCED REMEMBER THOSE MEMBERS OF CONGRESS YOU SAW ON T. V. LAST NIGHT AFTER THE PRESIDENT'S STATE OF THE UNION SPEECH THE ONES ON THE AISLE JOSTLING TO SHAKE HIS HAND SOMEONE SHOULD HAVE CHECKED FOR CRUMBS HOURS BEFORE PRESIDENT CLINTON ARRIVED AT THE HOUSE OF REPRESENTATIVES CONGRESS'S HALF DOZEN OR SO LONGTIME STATE OF THE UNION GROUPIES WERE THERE A GROUP OF SENIOR CITIZENS STAKING OUT THE BEST SEATS AND SUSTAINING THEMSELVES ON COOKIES AND JUNK FOOD QUOTE WE KEEP 'EM IN OUR POCKETS SO WE DON'T MESS UP THE PLACE QUOTE SAYS COURTLY DEMOCRATIC REPRESENTATIVE SONNY MONTGOMERY OF MISSISSIPPI IT'S ANOTHER ONE OF THE MANY RITES OF CONGRESS FOR YEARS TWENTY SEVEN IN REPRESENTATIVE MONTGOMERY'S CASE SOME OF THE SAME HOUSE FRIENDS HAVE ARRIVED EARLY TO CLAIM THE AISLE SEATS THAT PUT THEM IN GLAD HANDING RANGE OF THE PRESIDENT HIS CABINET THE SUPREME COURT AND THE DIPLOMATIC CORPS THEY START SHOWING UP AT ABOUT SIX P. M. THREE HOURS BEFORE THE SPEECH BEGINS THEY WOULD BE THERE EARLIER BUT IN THESE SECURITY CONSCIOUS DAYS THEY WON'T LET US IN 'TIL AFTER THE BOMB SNIFFING DOGS LEAVE SAYS REPRESENTATIVE MONTGOMERY IT'S NOT THE MAJESTY OF THE MOMENT THAT DRAWS THEM IT ISN'T EVEN THE CERTAINTY OF GETTING ON NATIONAL T. V. THESE ARE SOME OF CONGRESS'S FEW PUBLICITY AVOIDERS AND LEST MR. CLINTON THINK OTHERWISE IT'S NOT HIS PERSONAL CELEBRITY I DON'T SHOW UP FOR THE DEMOCRATIC PRESIDENT SAYS REPUBLICAN REPRESENTATIVE BOB STUMP OF ARIZONA I SHOW UP FOR THE OTHER GUYS AS FAR AS REPRESENTATIVE MONTGOMERY RECALLS EIGHTY FOUR YEAR OLD REPRESENTATIVE BILL NATCHER OF KENTUCKY STARTED THE TRADITION SOMETIME AFTER HIS NINETEEN FIFTY THREE ELECTION REPRESENTATIVE MONTGOMERY SEVENTY THREE HAS BEEN ARRIVING EARLY SINCE HE WAS A FRESHMAN IN NINETEEN SIXTY SEVEN HE'S NOW A COMMITTEE CHAIRMAN BUT RANK HAS NO PRIVILEGES WHEN IT COMES TO SAVING A SEAT FOR THIS OCCASION A FEW FRESHMEN TRIED TO CUT CORNERS LAST NIGHT PUTTING PLACE CARDS TO RESERVE PRIME SEATS BUT REPRESENTATIVE MONTGOMERY WON'T DO THAT HE'S AFRAID HE'D FIND HIS SEAT GONE WHEN HE CAME BACK TO CLAIM IT REPRESENTATIVE MONTGOMERY ACKNOWLEDGES THAT EXCHANGES WITH PRESIDENTS DON'T GET MUCH BEYOND HELLO GLAD TO SEE YOU BUT LEAVE IT TO THE VOLUBLE GEORGE BUSH WHO'D BEEN ELECTED TO THE HOUSE THE SAME YEAR AS MR. MONTGOMERY TO SAY SOMETHING MORE PROFOUND QUOTE THERE YOU ARE SONNY QUOTE MR. BUSH SAID QUOTE IN THE SAME OLD SEAT QUOTE NORTHERN TELECOM LIMITED CONTINUING TO RESTRUCTURE OPERATIONS IN THE FACE OF WEAK NORTH AMERICAN MARKETS REPORTED A STEEP DECLINE IN FOURTH QUARTER PROFIT AND SAID IT EXPECTS AN OPERATING LOSS IN THIS YEAR'S FIRST QUARTER FOURTH QUARTER PROFIT DROPPED FIFTY NINE PERCENT TO ONE HUNDRED SIX MILLION DOLLARS OR FORTY TWO CENTS A SHARE FROM A YEAR EARLIER TWO HUNDRED FIFTY SIX MILLION DOLLARS OR ONE DOLLAR AND TWO CENTS A SHARE REVENUE FELL THREE POINT ONE PERCENT TO TWO POINT FOUR SIX BILLION DOLLARS FROM TWO POINT FIVE FOUR BILLION DOLLARS FOR THE FULL YEAR NORTHERN REPORTED A NET LOSS OF EIGHT HUNDRED SEVENTY EIGHT MILLION DOLLARS OR THREE DOLLARS AND FIFTY FOUR CENTS A SHARE WHICH INCLUDED NINE HUNDRED FORTY MILLION DOLLARS IN RESTRUCTURING CHARGES YEAR EARLIER NET INCOME WAS FIVE HUNDRED FORTY EIGHT MILLION DOLLARS OR TWO DOLLARS AND SEVENTEEN CENTS A SHARE REVENUE FOR NINETEEN NINETY THREE FELL THREE POINT ONE PERCENT TO EIGHT POINT ONE FIVE BILLION DOLLARS FROM A YEAR EARLIER EIGHT POINT FOUR ONE BILLION DOLLARS THE COMPANY'S CHIEF EXECUTIVE OFFICER JEAN MONTY WHO HAS ADOPTED AN AGGRESSIVE STANCE IN REVAMPING NORTHERN SINCE BEING NAMED IN NINETEEN NINETY THREE TO RUN IT DESCRIBED THE YEAR'S FINANCIAL RESULTS AS QUOTE DISAPPOINTING QUOTE BUT EXPECTS TO RETURN THE COMPANY TO PROFITABILITY THIS YEAR HE NOTED THAT ALTHOUGH THE FOURTH QUARTER IS TRADITIONALLY NORTHERN TELECOM'S STRONGEST THE COMPANY WAS BURDENED BY LOWER MARGINS WEAK CANADIAN MARKETS AND THE EFFECTS OF A SIX MONTH OLD RESTRUCTURING WHICH INCLUDES A ONE HUNDRED FIFTY EIGHT MILLION DOLLAR SOFTWARE OVERHAUL NORTHERN HAS BEEN PLAGUED BY SOFTWARE PROBLEMS THAT LED TO DELAYS IN EQUIPMENT AND OTHER DELIVERIES TO PHONE COMPANIES AS A RESULT IT HAS CEDED U. S. MARKET SHARE TO AMERICAN TELEPHONE AND TELEGRAPH COMPANY ITS MAIN RIVAL IN THE FIERCELY COMPETITIVE SIX BILLION DOLLARS U. S. MARKET FOR DIGITAL SWITCHING SYSTEMS WE'VE BEEN BUILDING OUR MARGINS UP TO THIRTY SIX PERCENT IN THE FOURTH QUARTER UP FROM THIRTY ONE PERCENT IN THE SECOND QUARTER MR. MONTY SAID IN AN INTERVIEW HE NOTED THAT THE COMPANY IN THE PAST HAS HAD MARGINS OF THIRTY NINE PERCENT TO FORTY PERCENT A BRIGHT SPOT FOR NORTHERN WAS ITS INTERNATIONAL BUSINESS WHICH CONTRIBUTED ABOUT TWENTY NINE PERCENT OF TOTAL REVENUE FOR THE YEAR UP FROM TWENTY SIX PERCENT IN NINETEEN NINETY TWO HOWEVER GAINS IN EUROPE WERE MORE THAN OFFSET BY DECLINES IN CANADA AND OTHER INTERNATIONAL MARKETS RESPONDING TO REGULATORY CHANGES CANADIAN PHONE COMPANIES HAVE DECREASED THEIR CAPITAL EXPENDITURES FOR THE TYPE OF EQUIPMENT THAT NORTHERN MAKES MR. MONTY SAID REVENUE IN THE U. S. WAS FLAT FOR THE QUARTER NORTHERN EXPECTS DEMAND TO PICK UP IN U. S. MARKETS THIS YEAR ALTHOUGH THE BIGGEST GROWTH AREAS ARE ASIA PACIFIC AND EUROPE THE CANADIAN MARKET WILL BE REASONABLY SOFT MR. MONTY SAID NORTHERN WHICH CUT TWO THOUSAND JOBS IN NINETEEN NINETY THREE HAS SAID IT PLANS ANOTHER FOUR THOUSAND CUTS THIS YEAR AS PART OF ITS RESTRUCTURING THE CHAIRMEN OF SPAIN'S FIVE BIGGEST BANKS HUDDLED YESTERDAY AS A FIRST STEP TOWARD WORKING OUT A RESCUE PLAN FOR BANCO ESPANOL DE CREDITO BUT LEAKS FROM THE MEETING INDICATED THAT THE BANKS WEREN'T HAPPY WITH THE PROPOSAL GIVEN BECAUSE IT REQUIRES THEM TO SHOULDER MOST OF THE BURDEN FOR REFLOATING BANESTO PEOPLE IN THE INDUSTRY SAID BANESTO'S NEW CHAIRMAN ALFREDO SAENZ WHO PRESENTED THE PLAN WAS BELIEVED TO HAVE ASKED COMMERCIAL AND SAVINGS BANKS TO INJECT AS MUCH AS THREE HUNDRED FIFTY BILLION PESETAS TWO POINT FOUR FIVE BILLION DOLLARS INTO BANESTO THROUGH SPAIN'S DEPOSIT GUARANTEE FUND THIS MONEY WOULD BE USED TO HELP MEET A FINANCIAL GAP AT BANESTO ESTIMATED TO STAND AT SIX HUNDRED FIVE BILLION PESETAS THE GUARANTEE FUND WHICH CURRENTLY HAS ABOUT THIRTY BILLION PESETAS WOULD ACQUIRE ASSETS FROM BANESTO INCLUDING NONPERFORMING LOANS REAL ESTATE AND INDUSTRIAL SHAREHOLDINGS FOR MORE THAN ONE HUNDRED FIFTY BILLION PESETAS THEN THE FUND IS EXPECTED TO SUBSCRIBE TO A TWO HUNDRED BILLION PESETAS CAPITAL INCREASE THEREBY BECOMING BANESTO'S BIGGEST SHAREHOLDER ALSO SAID TO BE INCLUDED IN THE PLAN IS A TOTAL WRITE DOWN OF THE BANK'S RESERVES AND A REDUCTION IN THE NOMINAL VALUE OF ITS SHARES TO FIVE HUNDRED PESETAS FROM SEVEN HUNDRED PESETAS EACH THAT WOULD LEAD TO A WRITE DOWN OF CAPITAL AND RESERVES OF ABOUT TWO HUNDRED SEVENTY FIVE BILLION PESETAS BANKS ALSO APPARENTLY OBJECTED TO MR. SAENZ'S PLAN BECAUSE IT SPARES SHAREHOLDERS MOST OF THE BAILOUT PAIN THEY SAID THAT SEVERAL BANKS FAVORED WRITING OFF ALL OF THE BANK'S CAPITAL A MOVE THAT WOULD WIPE OUT THE VALUE OF ITS CURRENT SHARES ALTHOUGH IT IS UNCLEAR WHETHER THEY WILL PRESS FOR SUCH A DRASTIC SOLUTION THE BANKS RESENT BEING CALLED ON TO BAIL OUT A BANK THAT FAILED TO HEED THE ECONOMY'S WARNING SIGNALS AFTER NINETEEN EIGHTY NINE WHILE OTHER BANKS WERE SCALING BACK LENDING IN ANTICIPATION OF TOUGH TIMES BANESTO SPAIN'S FOURTH LARGEST BANK ADOPTED AN EXPANSIONARY LOAN POLICY THAT CONTRIBUTED TO ITS CURRENT PROBLEMS THEY SAID BANKING SOURCES SAID A NEWS BLACKOUT WAS IMPOSED YESTERDAY TO EASE PRESSURE ON THE CHAIRMEN WHO ATTENDED THE MEETING THE ONLY OFFICIAL COMMENT CAME FROM THE SPANISH BANKING ASSOCIATION WHICH ANNOUNCED THAT CALCULATIONS OF BANESTO'S FINANCING NEEDS HAD BEEN REDUCED BY SEVENTY BILLION PESETAS WHEN THE BANK OF SPAIN OUSTED BANESTO'S CHAIRMAN AND BOARD IN DECEMBER AS ITS FINANCIAL PLIGHT CAME TO LIGHT THE CENTRAL BANK ESTIMATED THAT BANESTO HAD A FINANCIAL SHORTFALL OF FIVE HUNDRED THREE BILLION PESETAS A FIGURE THAT WAS RAISED PROVISIONALLY LAST WEEK TO SIX HUNDRED SEVENTY FIVE BILLION PESETAS BY BANESTO'S NEW MANAGEMENT TEAM MR. SAENZ IS EXPECTED TO MEET WITH THE CHAIRMEN OF SPAIN'S LEADING SAVINGS BANKS TOMORROW SO FAR SAVINGS BANKS HAVE PROVEN EVEN MORE RELUCTANT THAN COMMERCIAL BANKS TO PARTICIPATE IN A RESCUE PLAN FOR BANESTO THE CHAIRMAN OF THE CAIXA DE CATALUNYA SPAIN'S THIRD BIGGEST SAVINGS BANK TOLD THE SPANISH PRESS EARLIER THIS WEEK THAT QUOTE THE MOST LOGICAL THING WOULD BE FOR BANESTO TO CLOSE ITS DOORS GIVEN THE LOSS OF VALUE THAT IT'S ASSETS HAVE SUFFERED QUOTE LONRHO P. L. C. ANNOUNCED CHANGES IN ITS BOARD A SIGN THAT INVESTOR DIETER BOCK MAY BE WINNING HIS POWER STRUGGLE WITH HIS CO CHIEF EXECUTIVE ROLAND W. QUOTE TINY QUOTE ROWLAND THE DIVERSIFIED MULTINATIONAL COMPANY SAID ITS CHAIRMAN RENE LECLEZIO AND THREE OTHER DIRECTORS CLOSELY ALLIED WITH MR. ROWLAND ARE RETIRING AND THAT THE BOARD APPOINTED THREE NONEXECUTIVE DIRECTORS MR. LECLEZIO'S SUCCESSOR WASN'T NAMED MR. BOCK WHO BECAME CO CHIEF EXECUTIVE AND THE COMPANY'S LARGEST SHAREHOLDER WHEN HE BOUGHT AN EIGHTEEN PERCENT STAKE MORE THAN A YEAR AGO HAS BEEN AGITATING FOR BOARDROOM CHANGE MR. BOCK WANTS TO PARE LONRHO AN AMALGAMATION OF SEVEN HUNDRED COMPANIES IN SIXTY COUNTRIES WITH INTERESTS IN MINING AGRICULTURE HOTELS PIPELINES PUBLISHING AND AUTOMOBILES TO THREE CORE BUSINESSES MR. ROWLAND WHO HAS LED THE COMPANY FOR THIRTY TWO YEARS WANTS LONRHO TO STAY MUCH AS IT IS THE CHANGES LEAVE OPEN THE FATE OF MR. ROWLAND A FLAMBOYANT INTERNATIONAL FIGURE WHO BUILT LONRHO FROM A TINY MINING COMPANY IN COLONIAL RHODESIA MR. ROWLAND SEVENTY SIX YEARS OLD IS A LIKELY CHOICE TO BECOME CHAIRMAN THE POST WOULD ALLOW HIM TO ENGAGE IN HIS PASSION ROAMING THE GLOBE IN SEARCH OF NEW BUSINESS OPPORTUNITIES WHILE LEAVING DAY TO DAY OPERATIONS TO SOMEONE ELSE MR. LECLEZIO OVERSAW LONRHO FROM HIS RANCH IN MAURITIUS FOR THE TWO YEARS HE WAS CHAIRMAN LONRHO ALSO REPORTED THAT PRETAX EARNINGS BUOYED BY ASSET SALES GREW FIFTY ONE PERCENT IN THE FISCAL YEAR ENDED SEPTEMBER THIRTIETH TO ONE HUNDRED SEVENTY TWO MILLION POUNDS TWO HUNDRED FIFTY SEVEN POINT ONE MILLION DOLLARS OR FIFTEEN POINT ONE PENCE TWENTY THREE CENTS A SHARE THE COMPANY SAID SALES TOTALED TWO POINT SEVEN OH BILLION POUNDS IN THE FISCAL YEAR IN FISCAL NINETEEN NINETY TWO ADJUSTED FOR NEW ACCOUNTING RULES LONRHO'S PRETAX PROFIT STOOD AT ONE HUNDRED FOURTEEN MILLION POUNDS OR SIX POINT SIX PENCE A SHARE ON SALES OF THREE POINT NINE THREE BILLION POUNDS ASSET SALES ADDED EIGHTY SEVEN MILLION POUNDS TO LONRHO'S NINETEEN NINETY THREE PRETAX PROFIT THE LATEST RESULTS WERE LARGELY IN LINE WITH ANALYSTS' EXPECTATIONS LONRHO'S DEBT RATIO WAS MUCH IMPROVED AT THIRTY ONE PERCENT OF EQUITY DOWN FROM FIFTY SEVEN PERCENT A YEAR AGO LONRHO'S DEBT PROBLEMS LED MR. ROWLAND TO TURN TO MR. BOCK FOR A CASH INFUSION IN DECEMBER NINETEEN NINETY TWO MR. BOCK IS SAID TO BE CONSIDERING SELLING OFF MORE THAN ONE BILLION IN LONRHO ASSETS FROM ITS ROLLS ROYCE DEALERSHIPS TO POSTAGE PRINTING PLANTS MR. BOCK HAS SAID LONRHO SHOULD FOCUS ON THREE CORE BUSINESES MINING AGRICULTURE AND HOTELS IN A STATEMENT TO SHAREHOLDERS MR. LECLEZIO SEEMED TO SIGNAL THAT THE REST OF LONRHO'S BOARD AGREES YOUR COMPANY WILL CONCENTRATE ON THESE CENTRAL BUSINESSES WHILST PREPARING TO DISPOSE OF OTHER ASSETS SENSIBLY AS OPPORTUNITIES ARISE THE NEW OUTSIDE DIRECTORS ARE SIR JOHN LEAHY A FORMER BRITISH AMBASSADOR TO SOUTH AFRICA WHERE LONRHO HAS MINING INTERESTS PETER HARPER A DIRECTOR OF HANSON P. L. C. AND STEPHEN WALLS CHAIRMAN OF ALBERT FISHER GROUP P. L. C. MEANWHILE FROM WITHIN LONRHO TERRENCE WILKINSON JOINS THE BOARD AS AN EXECUTIVE DIRECTOR HE HAS BEEN DEVELOPING LONRHO'S PLATINUM MINES IN SOUTH AFRICA JAPAN'S HOUSEHOLD SPENDING IN NOVEMBER WAS THREE HUNDRED EIGHTEEN THOUSAND FOUR HUNDRED TWENTY EIGHT YEN TWO THOUSAND EIGHT HUNDRED FIFTY THREE DOLLARS AND ELEVEN CENTS AVERAGE UP ONE POINT FOUR PERCENT FROM A YEAR EARLIER IN REAL TERMS THE STATISTICS BUREAU OF THE PRIME MINISTER'S OFFICE SAID REAL HOUSEHOLD SPENDING TAKES INTO ACCOUNT INFLATION HOUSEHOLD SPENDING MARKED A YEAR ON YEAR RISE FOR THE SECOND MONTH IN A ROW IN OCTOBER HOUSEHOLD SPENDING ROSE ZERO POINT FOUR PERCENT THE FIRST YEAR ON YEAR RISE IN SIX MONTHS SEVERAL DOCTORS ARE URGING THE FOOD AND DRUG ADMINISTRATION TO WITHDRAW APPROVAL OF A NARCOTIC LOLLIPOP GIVEN TO CHILDREN ENTERING SURGERY THAT MAY CAUSE NAUSEA AND SEVERE BREATHING DIFFICULTIES IN LETTERS THIS WEEK TO F. D. A. COMMISSIONER DAVID KESSLER SOME ANESTHESIOLOGISTS AND OTHER PHYSICIANS EXPRESSED CONCERNS THE LOLLIPOP COULD LEAD TO DEATHS IF PROPERLY TRAINED HOSPITAL PERSONNEL AREN'T PRESENT WHEN IT'S ADMINISTERED THE LOLLIPOP CONTAINS FENTANYL AN OPIUM LIKE SEDATIVE AND PAINKILLER THAT IS FAR MORE POTENT THAN MORPHINE ABBOTT LABORATORIES OF NORTH CHICAGO ILLINOIS HAS THE MARKETING RIGHTS FOR THE LOLLIPOP UNDER LICENSE FROM ANESTA CORPORATION OF SALT LAKE CITY AN ABBOTT SPOKESWOMAN SAID THE CRITICISMS OF THE PRODUCT WERE RAISED AT THE TIME THE F. D. A. APPROVED THE LOLLIPOP IN OCTOBER AND THAT IT WILL BE SOLD TO HOSPITALS OR PHYSICIANS WITH STRICT LIMITATIONS ON ITS USE BECAUSE THE DRUG CAN SLOW OR EVEN STOP A PATIENT'S BREATHING A PRODUCT WARNING LABEL SAYS THE LOLLIPOP QUOTE SHOULD BE ADMINISTERED ONLY IN MONITORED SETTINGS AND BY PERSONS SPECIFICALLY TRAINED IN THE USE OF ANESTHETIC DRUGS QUOTE THE CANDY IS DESIGNED FOR CHILDREN WHO CAN'T OTHERWISE BE CALMED DOWN BEFORE BEING GIVEN AN ANESTHETIC BY INJECTION WITHOUT A HIGH LEVEL OF VIGILANCE I AM CONCERNED THAT THE OUTCOME COULD BE TRAGIC ALLEN J. HINKLE A DARTMOUTH MEDICAL SCHOOL ANESTHESIOLOGY PROFESSOR WROTE F. D. A. COMMISSIONER DAVID KESSLER I DO NOT BELIEVE THE FENTANYL LOLLIPOP HAS ANY BENEFITS ESPECIALLY WHEN WE BEGIN TO LOOK AT THE PATIENT SAFETY RISK JAMES F. ARENS VICE PRESIDENT FOR CLINICAL AFFAIRS AT THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON TERMED THE LOLLIPOP A CUTE SOLUTION TO A NONPROBLEM AND A TRULY DANGEROUS PRODUCT BY CONTRAST MYRON YASTER DIRECTOR OF THE PEDIATRIC PAIN SERVICE AT THE JOHNS HOPKINS HOSPITAL SAID IN AN INTERVIEW THAT THE LOLLIPOP FILLS A NICHE THAT NEEDED TO BE FILLED IT'S A WAY TO HELP STOP PAIN WITHOUT INFLICTING PAIN FENTANYL WHEN USED IN PATCHES FOR CHRONIC CANCER AND OTHER PAIN HAS BEEN ASSOCIATED WITH MORE THAN FIFTY DEATHS REPORTED TO THE F. D. A. AN F. D. A. SPOKESMAN SAID THE DEATHS WERE CAUSED BY ABUSE OF THE PATCH EXCESSIVE DOSING OR THE CANCER ITSELF NEVERTHELESS THE SPOKESMAN SAID THE AGENCY WILL CONSIDER WHETHER THE APPROVAL OF THE LOLLIPOP SHOULD BE REVERSED THE LOLLIPOP HASN'T YET BEEN MARKETED AND THE F. D. A. CURRENTLY IS DISCUSSING WITH ABBOTT HOW THE DELIVERY AND USE OF THE PRODUCT WILL BE CONTROLLED CITING THE DEATHS ASSOCIATED WITH FENTANYL IN PATCH FORM SIDNEY WOLFE DIRECTOR OF THE CONSUMER ORIENTED PUBLIC CITIZEN HEALTH RESEARCH GROUP CALLED THE F. D. A.'S APPROVAL OF THE LOLLIPOP QUOTE DANGEROUS AND ILL CONCEIVED QUOTE AND CALLED ON DOCTOR KESSLER TO REVERSE THE MARKETING APPROVAL DOCTOR WOLFE SAID THAT IN ONE USE OF THE FENTANYL PATCH A SEVENTEEN YEAR OLD FLORIDA BOY WENT TO AN ORAL SURGEON HAD A TOOTH EXTRACTED AND DIED AFTER BEING GIVEN THE PRODUCT FOR POST OPERATIVE PAIN DOCTORS HAVE RAISED OTHER CONCERNS ABOUT THE LOLLIPOP SUCH AS THE NAUSEA SOMETIMES ASSOCIATED WITH FENTANYL AND THE POSSIBILITY THAT THE LOLLIPOPS COULD BE OBTAINED BY DRUG ABUSERS THROUGH ILLEGAL MEANS DOCTOR HINKLE NOTED IN HIS LETTER TO DOCTOR KESSLER THAT ANESTHESIA IN A CHILD WHO IS VOMITING INCREASES THE RISK OF THE ENTIRE PROCEDURE TREATING ANXIETY BY INDUCING VOMITING IN CHILDREN SEEMS COUNTERPRODUCTIVE TO ME DOCTOR HINKLE WROTE PHARMACEUTICAL MAKER MERCK AND COMPANY REPORTED HIGHER SALES AND EARNINGS FOR THE FOURTH QUARTER WHILE WARNER LAMBERT COMPANY POSTED A LOSS THAT INCLUDED A PREVIOUSLY ANNOUNCED RESTRUCTURING CHARGE THE RESULTS WERE WITHIN EXPECTATIONS SOOTHING INVESTORS WHO HAD FEARED WORSE MERCK SHARES ROSE ONE DOLLAR TO THIRTY FIVE DOLLARS AND SEVENTY FIVE CENTS WARNER LAMBERT ADDED TWELVE POINT FIVE CENTS TO END AT SIXTY FOUR POINT SIX TWO FIVE DOLLARS BOTH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MERCK POSTED AN ELEVEN PERCENT INCREASE IN NET INCOME TO SIX HUNDRED SEVENTY FOUR POINT TWO MILLION DOLLARS OR FIFTY SIX CENTS A SHARE FROM SIX HUNDRED NINE POINT ONE MILLION DOLLARS OR FIFTY THREE CENTS A SHARE SALES ROSE FIFTEEN PERCENT TO THREE BILLION DOLLARS FROM TWO POINT SIX BILLION DOLLARS THE QUARTERLY RESULTS INCLUDE THE EFFECT OF THE MEDCO CONTAINMENT SERVICES INCORPORATED ACQUISITION IN NOVEMBER FOR THE YEAR THE WHITEHOUSE STATION N. J. COMPANY'S EARNINGS ROSE NINE POINT TWO PERCENT TO TWO POINT ONE SEVEN BILLION DOLLARS OR ONE DOLLAR AND EIGHTY SEVEN CENTS A SHARE FROM ONE POINT NINE EIGHT BILLION DOLLARS OR ONE DOLLAR AND SEVENTY TWO CENTS A SHARE SALES ROSE EIGHT POINT SIX PERCENT TO TEN POINT FIVE BILLION DOLLARS FROM NINE POINT SIX SIX BILLION DOLLARS THE YEARLY RESULTS INCLUDE MEDCO THE SALE OF CALGON WATER MANAGEMENT DIVISION AND A RESTRUCTURING CHARGE IN NINETEEN NINETY THREE AND ACCOUNTING CHANGES IN NINETEEN NINETY TWO CONTINUING OPERATIONS ARE QUOTE DOING WELL AND THAT'S A GOOD SIGN QUOTE SAID JACK LAMBERTON AN ANALYST AT NATWEST SECURITIES CORPORATION SALES PARTICULARLY IN THE U. S. WERE STRONGER THAN EXPECTED HE ASSERTED WARNER LAMBERT REPORTED A QUARTERLY NET LOSS OF ONE HUNDRED NINETY SIX POINT NINE MILLION DOLLARS OR ONE DOLLAR AND FORTY SIX CENTS A SHARE COMPARED WITH NET INCOME OF ONE HUNDRED THIRTY SEVEN POINT SIX MILLION DOLLARS OR ONE DOLLAR AND TWO CENTS A SHARE A YEAR AGO SALES ROSE FOUR PERCENT TO ONE POINT FIVE THREE BILLION DOLLARS FROM ONE POINT FOUR SEVEN BILLION DOLLARS THE MORRIS PLAINS N. J. COMPANY'S YEARLY PROFIT DECLINED FORTY NINE PERCENT TO THREE HUNDRED THIRTY ONE MILLION DOLLARS OR TWO DOLLARS AND FORTY FIVE CENTS A SHARE FROM SIX HUNDRED FORTY THREE POINT SEVEN MILLION DOLLARS OR FOUR DOLLARS AND SEVENTY EIGHT CENTS A SHARE SALES GREW THREE POINT FIVE PERCENT TO FIVE POINT SEVEN NINE BILLION DOLLARS FROM FIVE POINT SIX BILLION DOLLARS THE QUARTER INCLUDED A THIRTEEN POINT ONE MILLION DOLLAR GAIN ON THE SALE OF ITS CHOCOLATE SLASH CARAMEL BUSINESS AND A FOUR HUNDRED SIXTY EIGHT POINT THREE MILLION DOLLAR RESTRUCTURING CHARGE IN ADDITION THE YEAR INCLUDED A SEVENTY MILLION DOLLAR CHARGE FOR THE DISPOSITION OF THE NOVON PRODUCTS GROUP AND ACCOUNTING CHANGES ALONG THE RED DIRT ROAD RUNNING BESIDE THIS MUD HUT VILLAGE THE MAIN ECONOMIC INDICATOR IS THE FREQUENCY OF QUOTE MAMMY TRUCKS QUOTE THAT RATTLE BY TO CARRY LOCAL FARMERS AND THEIR PRODUCE TO THE NEARBY TOWN OF KASUA AS CHARLE AYIETEY READS THAT INDICATOR THINGS AREN'T GOING WELL WE USED TO FIND A BIG TRUCK ONCE A DAY THE SLIGHT MIDDLE AGED FARMER SAYS BUT A STRAPPED GOVERNMENT HAS CUT BACK ON MAINTENANCE AND THIS ROAD LIKE THOUSANDS OF OTHERS HAS BECOME AN AXLE BENDING ROLLER COASTER OF GULLETS AND DITCHES AS A RESULT THE TRUCKS ONLY COME ONCE A WEEK TODAY IS MONDAY HE SAYS THEY'LL COME TODAY HE WILL RIDE TO TOWN WITH HIS TOMATOES AND CASSAVAS SIT ALL NIGHT WITH HIS PRODUCE BESIDE THE ROAD AND SELL IT THE NEXT DAY THIS IS THE FOOTPATH ECONOMY OF RURAL GHANA A NATION THAT DEVELOPMENT SPECIALISTS SAY IS THE NEAREST THING TO AN ECONOMIC SUCCESS STORY IN BLACK AFRICA DURING THE PAST DECADE MARKET BASED ECONOMIC REFORMS HAVE BROUGHT REMARKABLE TRANSFORMATIONS IN EVERY OTHER REGION FROM CHILE TO THE CZECH REPUBLIC TO CHINA COUNTRIES HAVE USED ADAM SMITH'S FORMULAS TO REVIVE ECONOMIES PREVIOUSLY RENDERED MORIBUND BY GOVERNMENT CONTROLS BUT THIS ECONOMIC REVOLUTION AND ITS PAYOFF OF HIGHER LIVING STANDARDS HAVE LARGELY ELUDED SUB SAHARAN AFRICA WHERE THE NUMBER OF POOR PEOPLE IS EXPECTED TO INCREASE IN THE NEXT DECADE AT BEST THERE IS GHANA ON THE SOUTHERN COAST OF THE BULGE OF WEST AFRICA THIS COUNTRY HAS TRIED FOR TEN YEARS IT HAS WON PRAISE AND HARD CASH BY GENERALLY FOLLOWING THE DICTATES OF THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK EXCHANGE RATES HAVE BEEN REALIGNED TRIPLE DIGIT INFLATION HAS BEEN TAMED TO ROUGHLY TWENTY PERCENT A YEAR AND SIGNS OF PROGRESS HAVE CROPPED UP A FIVE STAR HOTEL STANDS OUTSIDE ACCRA THE CAPITAL AND A FEW INTERNATIONAL BUSINESSPEOPLE CHAT ON CORDLESS TELEPHONES ABOUT JOINT VENTURES AND PRIVATIZATIONS FINANCE MINISTER KWESI BOTCHWEY EVEN HOLDS OUT THE PROSPECT THAT GHANA WHICH IN NINETEEN FIFTY SEVEN BECAME THE FIRST BLACK AFRICAN STATE TO WIN ITS INDEPENDENCE FROM A EUROPEAN COUNTRY WILL ALSO PIONEER THE FIRST ASIAN STYLE ECONOMIC MIRACLE ON THE CONTINENT BUT GHANA'S ECONOMIC ASCENT IS AGONIZINGLY SLOW THE AVERAGE CITIZEN SCRAPES BY ON THE EQUIVALENT OF ABOUT FOUR HUNDRED TWENTY DOLLARS A YEAR THE RURAL POPULATION STRUGGLES NOT ONLY WITH BAD ROADS BUT ALSO WITH UNDERFUNDED SCHOOLS AND MALARIA ADJUSTED FOR GALLOPING POPULATION GROWTH THE GHANAIAN ECONOMY EXPANDS TWO PERCENT PER PERSON EACH YEAR A BARELY NOTICEABLE INCREASE AT THE BOTTOM RUNGS OF SOCIETY AND GHANAIANS WONDER WHY THEY UNLIKE MANY DEVELOPING NATIONS CAN'T REAP THE FRUITS OF ECONOMIC SUCCESS AFRICA HAS BEEN A TERRIBLE STORY SAYS SIR WILLIAM RYRIE WHO RECENTLY RETIRED AS HEAD OF THE INTERNATIONAL FINANCE CORPORATION THE PRIVATE SECTOR ARM OF THE WORLD BANK AGAINST THIS DISCOURAGING BACKDROP ECONOMISTS HAVE INVESTED CONSIDERABLE HOPE THAT GHANA'S HALTING PROGRESS CAN BECOME A CLEAR SUCCESS SHOWING THE WAY TO OTHER STAGNANT OR UNSTABLE AFRICAN STATES GHANA'S EXPERIENCE STANDS IN CONTRAST TO THAT OF MALAYSIA WHICH ALSO BECAME INDEPENDENT FROM BRITAIN IN NINETEEN FIFTY SEVEN BOTH FORMER COLONIES BEGAN WITH BRITISH INSTITUTIONS A RICH MIX OF RESOURCES FOREIGN CURRENCY RESERVES AND ANNUAL PER CAPITA INCOME OF ABOUT SEVEN HUNDRED FIFTY DOLLARS BUT THREE AND ONE HALF DECADES LATER MALAYSIA IS FAR AHEAD ITS AVERAGE CITIZEN EARNS ABOUT TWO THOUSAND FIVE HUNDRED DOLLARS A YEAR NEARLY SIX TIMES THE AMOUNT IN GHANA FOREIGN INVESTORS ARE RARE IN GHANA BUT ARE POURING INTO MALAYSIA THE REASONS FOR THIS DIVERGENCE IN DEVELOPMENT ARE COMPLEX BUT THEY CLEARLY GO BEYOND THE REACH OF THE I. M. F.'S MACROECONOMIC FIXES ONE STARK DIFFERENCE BETWEEN GHANA AND MALAYSIA LIES IN THEIR APPROACHES TO INVESTMENT IN EDUCATION AND HEALTH GHANA HAS USED ITS RESOURCES TO RUN THREE PRESTIGIOUS UNIVERSITIES AND PRODUCE A TALENTED ELITE BUT MALAYSIA LIKE SOUTH KOREA BEFORE IT POURED ITS EARLY MONEY INTO PRIMARY EDUCATION TODAY EIGHTY PERCENT OF MALAYSIA'S ADULT POPULATION CAN READ AND WRITE WHILE GHANA HAS AN OFFICIAL LITERACY RATE OF SIXTY PERCENT AND LOCAL OFFICIALS PUT THE FUNCTIONAL LITERACY RATE CLOSER TO FORTY PERCENT ILLITERACY KEEPS FARMERS FROM LEARNING NEW GROWING METHODS AND A LARGER SLICE OF THE POPULATION FROM WORKING IN EXPORT ORIENTED MANUFACTURING QUOTE NO COUNTRY HAS BEEN SUCCESSFUL ECONOMICALLY WITH LESS THAN FIFTY PERCENT LITERACY QUOTE SAYS KATHERINE MARSHALL A WORLD BANK AFRICA SPECIALIST WHOSE GRANDFATHER GEORGE C. MARSHALL MOUNTED THE RAPID RECONSTRUCTION OF POSTWAR EUROPE IN MATSEKOPE A GHANAIAN HAMLET THAT MAINLY PRODUCES SACKS OF SALT FROM A LAGOON THE PRIMARY SCHOOL CONSISTS OF TWO DILAPIDATED SHEDS WITH GAPING HOLES IN THE ROOFS NOT ALL THE CLASSROOMS HAVE BLACKBOARDS ENOUGH DESKS OR EVEN TEACHERS IN ONE ROOM DAVID APPRONTI A STERN FACED NINE YEAR OLD LEADS FORTY SEVEN CHILDREN IN SONG OUTSIDE UNDER A SHADE TREE JAMES OSEI KOFI A VISITING OFFICIAL FROM THE EDUCATION MINISTRY TELLS THE TEACHERS NOT TO EXPECT MUCH HELP FROM THE CAPITAL HIS WARNING THAT TIMES ARE HARD YOU'VE GOT TO ORGANIZE YOURSELVES ELICITS SNICKERS ONE TEACHER ASKS FOR A SMALL LIBRARY AT THE SCHOOL WHICH SERVES TWO HUNDRED SIXTY FOUR CHILDREN YOU'RE JUST DREAMING MR. KOFI RESPONDS ANOTHER TEACHER ASKS ABOUT PROSPECTS FOR HIGHER PAY NOW RUNNING ABOUT SIX HUNDRED DOLLARS A YEAR MR. KOFI SHAKES HIS HEAD IN LIEU OF A RAISE HE SUGGESTS THE GOVERNMENT MIGHT DECLARE A NATIONAL TEACHERS' DAY AND AWARD BICYCLES TO ESPECIALLY DEDICATED ONES IT MUST BE CASH THE TEACHER RESPONDS A TEST OF TWELVE THOUSAND STUDENTS HERE BY THE U. S. AGENCY FOR INTERNATIONAL DEVELOPMENT LAST YEAR FOUND THAT FEWER THAN TWO PERCENT READ AT LEVELS THE AID OFFICIALS HAD EXPECTED AND THAT HALF COULDN'T READ AT ALL DESPITE TWO HUNDRED TWENTY FIVE MILLION DOLLARS THAT INDUSTRIAL WORLD DONORS POURED INTO GHANA'S EDUCATION FROM NINETEEN EIGHTY EIGHT THROUGH NINETEEN NINETY THREE AND OF SIXTY FOUR THOUSAND PRIMARY SCHOOL TEACHERS HALF HADN'T HAD ANY TEACHER TRAINING ABOUT SIXTEEN THOUSAND HADN'T FINISHED HIGH SCHOOL SOME AN AID OFFICIAL ADDS CAN'T EVEN WRITE THEIR NAMES GHANA AND MALAYSIA ALSO PROVIDE A TELLING CONTRAST IN HEALTH CARE WHILE GHANA BUILT SEVERAL URBAN HOSPITALS MALAYSIA SET UP SMALL CLINICS TO DELIVER BASIC CARE AND IMMUNIZATIONS GHANA HAS ONE PHYSICIAN FOR EVERY TWENTY TWO THOUSAND NINE HUNDRED SEVENTY CITIZENS MALAYSIA HAS ONE FOR EVERY TWO THOUSAND SEVEN HUNDRED A CHILD IN GHANA CAN EXPECT TO LIVE TO AGE FIFTY FIVE A MALAYSIAN'S LIFE EXPECTANCY IS SEVENTY ONE YEARS AT TIMES THE SHEER BURDEN OF CULTURE SEEMS TO IMPEDE CREATION OF A THRIVING PRIVATE SECTOR GHANAIANS ARE INVETERATE TRADERS BUT HESITANT PRODUCERS IN ACCRA'S SHANTYTOWNS THE POOR EKE OUT A LIVING SELLING EVERYTHING FROM HUBCAPS TO HAIRDOS EVERY TRAFFIC LIGHT IS THRONGED BY HAWKERS OF A CURIOUS ARRAY OF CHINESE MADE PRODUCTS PLASTIC COAT HANGERS DOG COLLARS IMITATION CHRISTIAN DIOR DEODORANT AND GLUE AT TOLL STATIONS JUST OUTSIDE THE CAPITAL LITTLE GIRLS SELL PUPPIES AND PLASTIC BAGS OF COOL WATER BUT APART FROM THE TRADITIONAL EXPORTS OF GOLD AND COCOA GHANAIANS DON'T PRODUCE MUCH AND DESPITE A DECADE OF ECONOMIC LIBERALIZATION UNDER DICTATOR TURNED PRESIDENT JERRY RAWLINGS THE HABIT OF STATE CONTROL CLEARLY LINGERS ON FROM HIS EARLY ALLEGIANCE TO SOCIALIST LEADERS IN OTHER NATIONS AND TO SOCIALISM ITSELF EVEN NOW RIGID STATE CONTROL SHOWS UP ON DOZENS OF HALF BUILT STRUCTURES WITH THE BUREAUCRATIC COMMAND EMBLAZONED IN RED PAINT QUOTE STOP WORK PRODUCE PERMIT STATUTES IMPOSE STIFF PENALTIES ON ANYONE CARRYING OUT ANY ACT WITH INTENT TO SABOTAGE THE ECONOMY A VAGUE PROHIBITION THAT BUSINESSPEOPLE SAY LETS THE GOVERNMENT HARASS THEM CYNTHIA AGYEKUM WHO FOUNDED CESSA LIMITED A TEXTILE CONCERN IS A TESTAMENT TO BOTH THE ENERGY AND THE DIFFICULTIES OF THE COUNTRY'S BUSINESSPEOPLE TAUGHT AS A CHILD TO SEW SHE BEGAN STITCHING TOGETHER ACCESSORIES SUCH AS BELTS AND SATCHELS FROM KENTE CLOTH AND DYED FABRIC AFTER SELLING HER WARES THROUGH TRADE SHOWS AND OCCASIONAL CONTACTS WITH U. S. RETAILERS MS. AGYEKUM GOT A BREAK ADRIAN LONG SENIOR VICE PRESIDENT AT PIER ONE IMPORTS INCORPORATED SHOWED UP EARLY LAST YEAR AND WAS SO IMPRESSED WITH HER DESIGNS AND WORKMANSHIP THAT HE ORDERED SEVENTEEN THOUSAND PIECES THE MOTHER OF THREE YOUNG CHILDREN MANAGED TO SET UP A LEASE FOR A DEFUNCT BOARDED UP TEXTILE PLANT ITS SEWING MACHINES COULD BE REFURBISHED AND MANY OF ITS FORMER WORKERS WHO HADN'T HELD REGULAR JOBS SINCE IT CLOSED TWELVE YEARS EARLIER WERE EAGER TO SIGN ON BUT MS. AGYEKUM NEEDED MONEY TO GET STARTED A GOVERNMENT ESTABLISHED EXPORT FINANCE COMPANY TOLD HER IT HAD NO FUNDS TO LEND GHANAIAN BANKS STILL UNDER STATE CONTROL WEREN'T USED TO FINANCING LOCAL BUSINESSES BESIDES PIER ONE'S ORDER MEANT NOTHING TO THEM THEY HAD NEVER HEARD OF THE BIG RETAILER INFORMAL MONEYLENDERS DEMANDED TERMS SHE CONSIDERED CONFISCATORY FIVE PERCENT INTEREST EVERY TWO WEEKS ABOUT TO GIVE UP SHE MET WITH LENDERS FROM CONTINENTAL ACCEPTANCES LIMITED A GHANAIAN MERCHANT BANK THAT WAS BEGINNING TO OPEN UP TO NEW BUSINESSES AFTER AN INVESTMENT BY THE INTERNATIONAL FINANCE CORPORATION AFTER MUCH NEGOTIATION CONTINENTAL PROVIDED THE FINANCING FOR MS. AGYEKUM TO REOPEN THE PLANT AND HIRE WORKERS THEN A POWER BLACKOUT LEFT THE AREA WITHOUT ELECTRICITY FOR FOUR DAYS RATHER THAN RISK MISSING A SHIPMENT DATE MS. AGYEKUM ADDED A SECOND SHIFT AS SOON AS ELECTRICITY WAS RESTORED IT'S AN UPHILL STRUGGLE SHE SAYS BUT GHANAIANS ARE USED TO FIGHTING UPHILL STRUGGLES PIER ONE'S MR. LONG SAYS THAT WHILE MS. AGYEKUM SURMOUNTED THE PROBLEMS OTHER GHANAIAN ARTISANS WITH WHOM HE LEFT ORDERS BACKED OUT BECAUSE OF THE LACK OF FINANCING THE BOTTOM LINE IS EVERYBODY'S TRYING BUT WE WON'T GET ALL WE EXPECTED HE SAYS HOWEVER THERE ARE OTHER SIGNS OF HOPE JUST BEYOND FOTOBI A VILLAGE OF MUD HUTS MEANDERING GOATS AND NAKED CHILDREN DANIEL SAFO SURVEYS HIS PINEAPPLE PLANTATION ABOUT SIXTY WORKERS SCRAMBLE UP AND DOWN HILLY ROWS OF THE PLANTS WHICH STRETCH TOWARD THE HORIZON AND CUT RIPE PINEAPPLES WITH MACHETES THEN THEY PUT THE FRUIT INTO TUBS THAT VILLAGE WOMEN CARRY ON THEIR HEADS TO A TRUCK REVVING ITS ENGINE FOR A LATE AFTERNOON RUN TO ACCRA'S AIRPORT THE NEXT MORNING THE PINEAPPLES CONSIDERED EXCEPTIONALLY TENDER AND SWEET WILL BE UNLOADED IN ZURICH QUOTE THIS GUY COULD BE SITTING ON A GOLD MINE QUOTE SAYS DAVID LEGRICE A WORLD BANK CONSULTANT ADVISING MR. SAFO'S COMPANY COMBINED FARMERS LIMITED THE WORKERS EARN ONE DOLLAR A DAY THE GROWING CYCLE IS HALF THAT OF FARMS FARTHER FROM THE EQUATOR AND FEW PESTICIDES AND FERTILIZERS ARE NEEDED IF YOU LOOK AT THE REST OF AFRICA OTHER THAN SOUTH AFRICA THIS COUNTRY'S GOT THE BEST POTENTIAL HE ADDS ANOTHER NEW EXPORT IS SHRIMP OVER COCKTAILS AT A WESTERN DIPLOMAT'S HOME IN ACCRA AN AQUATIC CONSULTANT EXPLAINS TO LOCAL BUSINESS LEADERS AND AN AMERICAN VENTURE CAPITALIST HOW TO SPEED UP A FEMALE SHRIMP'S REPRODUCTIVE CYCLE AND WHY THE ESTUARY SOUTH OF THE VOLTA RIVER DAM IS IDEAL FOR SHRIMP FARMING BEN ADDAI AN ASHANTI TRIBAL LEADER WHO OWNS A SHRIMPING FLEET SAYS HE MAY EXPAND INTO SHRIMP FARMING AS WELL OVERALL HE SAYS IF WE'RE GOING TO MAKE IT IT'S GOING TO BE ON EXPORT PERFORMANCE AND THOUGH BUSINESS DEVELOPMENT IS SLOW THE AVERAGE GHANAIAN IS BETTER OFF THAN TEN YEARS AGO WHEN AFTER TWO DECADES OF COUPS CORRUPTION AND DISASTROUS ECONOMIC CONTROLS THE ECONOMY IMPLODED INFLATION SURGED TO ONE HUNDRED TWENTY THREE PERCENT BASIC GOVERNMENT SERVICES BROKE DOWN AND FUEL AND FOOD SHORTAGES BECAME SO ACUTE THAT EVEN CIVIL SERVANTS WENT HUNGRY MOREOVER GHANA'S CURRENT PROBLEMS PALE NEXT TO THOSE IN COUNTRIES LIKE SOMALIA BURUNDI OR ANGOLA THAT ARE PLAGUED WITH FACTIONAL KILLING AND WIDESPREAD STARVATION OPTIMISTS BELIEVE THAT SUB SAHARAN ECONOMIES MAY EVENTUALLY PICK UP THEY NOTE THAT THE REGION'S ECONOMIC PROFILE TODAY IS REMARKABLY SIMILAR TO THAT OF INDONESIA THAILAND AND MALAYSIA IN NINETEEN SIXTY FIVE IN TWENTY FIVE YEARS THEY SAY AFRICA MAY BOAST A FEW ECONOMIC MIRACLES FOR GHANA SUSPENDED SOMEWHERE BETWEEN THE AFRICAN ECONOMIC NIGHTMARE AND A HOPED FOR ASIAN STYLE PROSPERITY IT IS A LONG WAIT FOR THE AVERAGE GHANAIAN IT'S BEEN A HARDSHIP SAYS SEVENTY FOUR YEAR OLD ESTHER OCLOO WHOSE FOOD PROCESSING COMPANY NKULENU INDUSTRIES LIMITED IS ONE OF A HANDFUL OF PRIVATE CONCERNS THAT HAVE SURVIVED SINCE PRE INDEPENDENCE DAYS THE ONLY PRAYER AND HOPE IS THAT IT'S SUSTAINABLE BECAUSE IF IT'S NOT THE VERY SOULS OF THE PEOPLE WILL BE CRYING UTILITIES RESEARCHERS STILL BEAT THEIR DRUMS FOR CLEAN RENEWABLE ENERGY SOURCES BUT THE VOICES OF THEIR COST CONSCIOUS COLLEAGUES ARE GROWING LOUDER THE STEEP DROP IN CRUDE OIL PRICES TWENTY FIVE PERCENT SINCE NOVEMBER AND SLOW GROWING DEMAND FOR ELECTRICITY HAVE MADE THE FUTURISTIC WORLD OF BIOFUELS PHOTOVOLTAIC CELLS AND HIGH TECH WIND TURBINES SEEM LESS RELEVANT AS A RESULT THE SCIENTISTS WHO WERE HIRED TO CLEAN UP UTILITIES' SMOKESTACKS ARE FEELING THE HEAT THEMSELVES EDWARD F. NEUHAUSER SENIOR RESEARCH SPECIALIST FOR NIAGARA MOHAWK POWER CORPORATION AND HIS PEERS ARE THE INDUSTRY'S IDEALISTS THE GREEN THINKING INTELLECTUALS WHO WERE BROUGHT IN OFTEN GRUDGINGLY TO HELP UTILITIES SATISFY ENVIRONMENTAL REGULATORS QUOTE THE DEPARTMENT I'M IN IS THE PIE IN THE SKY PART OF THE COMPANY QUOTE DOCTOR NEUHAUSER SAYS IT'S LOOKED UPON WITH SKEPTICISM BY EVERYONE ELSE TRUDGING THROUGH A SNOWY VALLEY THE BEARDED FORTY TWO YEAR OLD DOCTOR NEUHAUSER INSPECTS A FIELD OF WILLOW TREES THAT HE'S HELPING TO GROW AS AN ALTERNATIVE FUEL FOR COAL BURNING ELECTRIC POWER PLANTS WITH A DOCTORATE IN BIOLOGY AND PUBLICATIONS ON SUCH SUBJECTS AS HOW EARTHWORMS CONVERT SLUDGE INTO TOPSOIL DOCTOR NEUHAUSER WOULD SEEM MORE AT HOME IN ACADEMIA THAN WORKING FOR A UTILITY IN FACT HE SPENT SEVERAL YEARS AS A CORNELL UNIVERSITY RESEARCHER BUT SINCE NINETEEN EIGHTY SIX HE HAS PUT HIS ENVIRONMENTAL IDEALS TO WHAT HE SEES AS A TOUGHER TEST THE UTILITIES ARE BIG POTENTIAL POLLUTERS SO IF YOU'RE GOING TO CLEAN THINGS UP FOR THE NEXT GENERATION GOING TO WORK FOR THE SOURCE OF THE PROBLEM MAY BE A BETTER WAY TO EFFECT CHANGE THAN FROM THE OUTSIDE BUT INCREASINGLY THERE'S ALSO PRESSURE INSIDE DOCTOR NEUHAUSER'S BOSS ANDREW VESEY A NIAGARA MOHAWK VICE PRESIDENT SAYS HE'S TELLING THE UTILITY'S RESEARCHERS YOU HAVE TO BECOME MORE VALUABLE TO THE PEOPLE WHO MAKE DECISIONS ON FUNDING YOU OR YOU WON'T BE HERE ALL AROUND THE NATION'S ONE HUNDRED SIXTY FIVE BILLION DOLLARS ELECTRIC UTILITIES INDUSTRY RESEARCH AND DEVELOPMENT BUDGETS FOR LOW POLLUTING ENERGY SOURCES ARE UNDER PRESSURE RESEARCH SPENDING HAS BEEN FLAT FOR ABOUT FIVE YEARS AND IS EXPECTED TO DROP TWO PERCENT IN NINETEEN NINETY FOUR ACCORDING TO INDUSTRY ESTIMATES AT STAKE IS THE UTILITIES RESEARCHER WHO COULD POTENTIALLY SAVE COMPANIES MONEY ON SUCH EXPENSES AS REGULATORY FINES AND STOPGAP EQUIPMENT WE RISK WIPING OUT A GENERATION OF TECHNOLOGICAL BREAKTHROUGHS SAYS JANE TURNBULL PROJECT MANAGER AT THE ELECTRIC POWER RESEARCH INSTITUTE A GROUP OF SEVEN HUNDRED UTILITIES IN PALO ALTO CALIFORNIA QUOTE UTILITIES RESEARCH MAY BECOME A LOST CHILD QUOTE MR. VESEY WHO HAS NINE NIAGARA MOHAWK DEPARTMENTS REPORTING TO HIM SAYS THAT THE RESEARCH AND DEVELOPMENT GROUP RANKS NINTH IN ITS CONTRIBUTION TO THE BOTTOM LINE NONETHELESS THE UTILITY HAS INCREASED ITS ANNUAL BUDGET FOR RESEARCH ON ALTERNATIVE ENERGY TENFOLD SINCE NINETEEN EIGHTY EIGHT TO ONE POINT THREE MILLION DOLLARS IN NINETEEN NINETY THREE THIS YEAR HOWEVER NIAGARA MOHAWK'S NINETEEN NINETY FOUR R. AND D. BUDGET PROBABLY WON'T GROW SAYS MR. VESEY WHO CONCEDES THAT HE'S CONFLICTED ABOUT THE FUTURE OF SUCH PROJECTS AS DOCTOR NEUHAUSER'S EXPERIMENTAL WILLOWS I HAVE DAYS WHEN I WISH I DIDN'T HAVE TO LOOK FIFTEEN YEARS DOWN THE ROAD HE SAYS MEANWHILE SOME OTHER UTILITIES ARE SCRAPPING PLANS FOR MAJOR RENEWABLE FUEL PROJECTS ARIZONA PUBLIC SERVICE COMPANY BASED IN PHOENIX RECENTLY CANCELED PLANS FOR A JOINT VENTURE WITH MOBIL CORPORATION TO MAKE SOLAR ENERGY PANELS NO MATTER HOW YOU GOT THE PENCIL OUT THE NUMBERS JUST DIDN'T WORK OUT SAYS RICHARD MACLEAN ARIZONA PUBLIC SERVICE'S VICE PRESIDENT OF ENVIRONMENTAL HEALTH AND SAFETY SOLAR POWER FROM PHOTOVOLTAIC PANELS WAS STALLED BY HIGH PURCHASE AND MAINTENANCE COSTS ELECTRICITY PRODUCED BY THE PANELS COSTS THREE TIMES AS MUCH AS POWER FROM OIL OR NATURAL GAS THAT'S WHY MOBIL IS TRYING TO SELL OFF ITS RESEARCH DATA AND EQUIPMENT AFTER INVESTING SOME ONE HUNDRED MILLION DOLLARS OVER NINETEEN YEARS TOM LEPLEY AN ELECTRICAL ENGINEER ON ARIZONA PUBLIC SERVICE'S RESEARCH STAFF HAS SEEN IT ALL BEFORE SINCE NINETEEN SEVENTY EIGHT HIS DEPARTMENT HAS BEEN REDUCED TO FOUR PEOPLE FROM TWELVE IN NINETEEN EIGHTY FIVE HE RECEIVED A TERMINATION LETTER HIMSELF HE RECALLS THAT IT SAID YOUR SERVICES ARE NO LONGER NEEDED PLEASE LOOK FOR ANOTHER POSITION BUT HE IGNORED THE NOTICE AND MANAGED TO STAY ON THE PAYROLL THEY JUST SORT OF FORGOT ABOUT IT HE SAYS AND THINGS EASED UP LUCKILY FOR MR. LEPLEY THE UTILITY SOON RECEIVED A GRANT FOR SOLAR CELL RESEARCH AND HE WAS JUST ABOUT THE LAST PERSON LEFT WHO KNEW MUCH ABOUT IT DODGING SUCH BULLETS IS A GROWING CONCERN AMONG UTILITIES RESEARCHERS WILLIAM MUSTON THE R. AND D. MANAGER AT TEXAS UTILITIES COMPANY IN DALLAS SAYS THAT ALTHOUGH HIS COMPANY HAS INCREASED SPENDING ON HIS DEPARTMENT OVER THE LAST THREE YEARS QUOTE OUR REGULATORS ARE FORCING US TO HOLD THE LINE ON COSTS OUR LATEST RATE INCREASE IS SMALLER THAN WE HAD HOPED AND SOMEBODY'S BUDGET IS GOING TO GET CUT BETTER TO TRIM RESEARCH SPENDING THAN REAL MUSCLE AND BONE ARGUES SANFORD COHEN A UTILITIES ANALYST AT MORGAN STANLEY AND COMPANY WHAT I HAVE SEEN OF RENEWABLES RESEARCH RESULTS SO FAR DOESN'T IMPRESS ME AS TO ITS ECONOMIC VALUE HE ADDS NO UTILITY SHOULD ELIMINATE R. AND D. COMPLETELY BUT EVERY DECISION SHOULD BE MADE BALANCED WITH NEAR TERM ISSUES DOCTOR NEUHAUSER TRIES TO IGNORE THE TREND AS ONE OF ELEVEN ELECTRICITY RESEARCHERS AT NIAGARA MOHAWK HE SPENDS MOST DAYS IN PLANNING SESSIONS ON PROJECTS THAT WOULD TAKE A DECADE OR LONGER HE ATTEMPTS TO PERSUADE OFFICIALS AT OTHER UTILITIES TO JOIN NIAGARA MOHAWK IN VARIOUS EXPERIMENTS AND HE PREPARES DETAILED WRITTEN REQUESTS FOR FEDERAL RESEARCH GRANTS A BURLY MAN WHO RAISES PIGS AT HOME AND MAKES HIS OWN SAUSAGE DOCTOR NEUHAUSER INSISTS THAT UTILITIES RESEARCH ISN'T JUST FOR DREAMERS WE'RE LOOKING FOR PRACTICAL AND COST EFFECTIVE SOLUTIONS TO OUR CUSTOMERS' ENERGY REQUIREMENTS HE SAYS GROWING ENOUGH WILLOWS NEAR NIAGARA MOHAWK'S SYRACUSE HEADQUARTERS FOR EXAMPLE COULD CUT DOWN ON THE UTILITY'S COAL USE THAT WOULD ELIMINATE THE NEED TO SPEND HUNDREDS OF MILLIONS OF DOLLARS ON CHEMICAL SCRUBBING DEVICES TO SATISFY TIGHTENING FEDERAL CLEAR AIR ACT RULES BUT DOCTOR NEUHAUSER FEARS THAT THE PURSE STRINGS FOR RESEARCH AT MANY UTILITIES WILL CONTINUE TO DRAW TIGHTER VERY FEW WANT TO RISK BEING OUT THERE IN FRONT HE SAYS QUOTE ALMOST EVERYONE WANTS TO BE SECOND QUOTE MICHAEL CRABTREE FORTY THREE YEARS OLD JOINS THIS HOSPITAL INFORMATION SYSTEMS PROVIDER AS PRESIDENT A TITLE RELINQUISHED BY THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM BREHM FIFTY CLINICOM SAID MR. CRABTREE PREVIOUSLY PRESIDENT AND CHIEF OPERATING OFFICER OF CONTINENTAL HEALTHCARE SYSTEMS INCORPORATED WILL FOCUS ON ACQUISITIONS HOWARD M. SVIGALS FORTY YEARS OLD WAS NAMED VICE PRESIDENT AND GENERAL MANAGER OF THIS TELECOMMUNICATIONS COMPANY'S G. T. E. SPACENET CORPORATION SATELLITE COMMUNICATIONS UNIT PREVIOUSLY PRESIDENT OF G. T. E. SPACENET MR. SVIGALS WILL REPORT TO FRANCIS A. GICCA PRESIDENT OF G. T. E. GOVERNMENT SYSTEMS WITH WHICH G. T. E. SPACENET RECENTLY WAS COMBINED FREDERICK G. TREMBLAY FIFTY TWO YEARS OLD WAS APPOINTED PRESIDENT OF SAPIENS U. S. A. INCORPORATED THE U. S. SUBSIDIARY OF THE SOFTWARE CONCERN MR. TREMBLAY FORMERLY A CONSULTANT WITH TREMBLAY AND COMPANY SUCCEEDS DAVID BURSIEK FIFTY SIX WHO WILL BECOME CHIEF EXECUTIVE OFFICER OF SAPIENS INTERNATIONAL ON APRIL FIRST M. C. I. COMMUNICATIONS CORPORATION LOOKING TO OFFER A SEAMLESS NORTH AMERICAN COMMUNICATIONS SERVICE WILL BUILD A LONG DISTANCE NETWORK IN MEXICO WITH GRUPO FINANCIERO BANAMEX ACCIVAL BANACCI MEXICO'S LARGEST FINANCIAL GROUP THE COMPANIES VALUED THE JOINT VENTURE TO BUILD A LONG DISTANCE NETWORK AND DELIVER VOICE DATA AND VIDEO SERVICES IN MEXICO AT ONE BILLION DOLLARS OF WHICH M. C. I. WILL INVEST FOUR HUNDRED FIFTY MILLION DOLLARS FOR A FORTY FIVE PERCENT STAKE BUT THEY SAID THE INVESTMENT COULD GO MUCH HIGHER AS SERVICE IS EXPANDED THROUGHOUT MEXICO THE SIX BILLION DOLLARS MEXICAN LONG DISTANCE PHONE MARKET IS EXPECTED TO IGNITE AS THE MEXICAN GOVERNMENT OPENS THE MARKET TO COMPETITORS BY NINETEEN NINETY SIX AND THE NORTH AMERICAN FREE TRADE AGREEMENT INCREASES TRAFFIC BETWEEN THE U. S. AND MEXICO IN ITS CONTINUING BATTLE TO WREST INTERNATIONAL TRAFFIC FROM AMERICAN TELEPHONE AND TELEGRAPH COMPANY M. C. I. HAS NOW POSITIONED ITSELF TO OFFER SERVICES FROM ARCTIC CANADA TO THE YUCATAN PENINSULA BY USING CARRIERS IN THOSE COUNTRIES AS ITS PARTNERS QUOTE WE'LL PROVIDE A UNIFIED COMMUNICATIONS INFRASTRUCTURE FOR THE ENTIRE CONTINENT QUOTE SAID M. C. I. CHAIRMAN BERT C. ROBERTS JUNIOR INITIALLY THE ADVANCED FIBER OPTIC SYSTEM WILL LINK BUSINESS CUSTOMERS IN THREE OF MEXICO'S LARGEST CITIES MEXICO CITY GUADALAJARA AND MONTERREY BY NINETEEN NINETY NINE IT WILL BLANKET MEXICO SAID FERNANDO QUIROS EXECUTIVE VICE PRESIDENT AT BANACCI M. C. I. AND BANACCI MUST STILL GET A LICENSE FROM THE MEXICAN GOVERNMENT TO PROVIDE LONG DISTANCE SERVICE A SEEMINGLY INSIGNIFICANT HURDLE GIVEN BANACCI'S CLOUT WITHIN MEXICO AND THE GOVERNMENT'S DETERMINATION TO IMPROVE SERVICES THE BIGGER OBSTACLE MAY BE OVERCOMING THE ENTRENCHED MONOPOLY TELEFONOS DE MEXICO WHILE ITS RICKETY SYSTEM HAS GENERATED A PLETHORA OF BAD JOKES ABOUT MEXICAN PHONE SERVICE TELMEX HAS BEGUN A THIRTY BILLION DOLLAR REBUILDING EFFORT AIMED AT DELIVERING CONNECTIONS INSTEAD OF BUSY SIGNALS AND ALL UNDER THE CLOSE SUPERVISION OF ITS FOREIGN PARTNERS SOUTHWESTERN BELL CORPORATION THE GIANT SAN ANTONIO BASED REGIONAL BELL COMPANY AND FRANCE TELECOM FRANCE'S NATIONAL CARRIER THE M. C. I. BANACCI ALLIANCE WILL PROBABLY PUSH TELMEX INTO A CLOSER CUSTOMER SHARING ARRANGEMENT WITH A. T. AND T. YOU CAN BANK ON THAT TO HAPPEN BEFORE THE FLOWERS BLOOM THIS YEAR SAID JACK B. GRUBMAN AN ANALYST AT PAINEWEBBER INCORPORATED ADDED ANDREW JAY FRIEDMAN AN ANALYST AT MEXICAN BROKER VECTOR TELMEX HAS TO SPEED UP A JOINT VENTURE ANNOUNCEMENT WITH AN AMERICAN COMPANY LEST ITS INVESTORS BECOME SKITTISH AN A. T. AND T. SPOKESMAN WOULD ONLY SAY THAT A. T. AND T. IS ALREADY PROVIDING THE MOST COMPREHENSIVE RANGE OF SERVICES IN NORTH AMERICA M. C. I. AN OLD HAND AT UPENDING MONOPOLIES AFTER YEARS OF BATTLING A. T. AND T. ENVISIONS MEXICAN BUSINESS AND RESIDENTIAL CUSTOMERS USING M. C. I. LIKE SERVICES WHILE BUSINESSES ARE THE FIRST TARGETS EVENTUALLY YOU MIGHT EVEN SEE AN AMIGOS Y. FAMILIA SERVICE SAID EUGENE EIDENBERG EXECUTIVE VICE PRESIDENT AND CHIEF OF M. C. I.'S INTERNATIONAL GROUP REFERRING TO M. C. I.'S HIGHLY SUCCESSFUL FRIENDS AND FAMILY DISCOUNT CONSUMER PLAN FOR LEVERAGE THE PARTNERS WILL USE BANACCI'S HUGE MARKET POSITION ONE HUNDRED TEN THOUSAND LARGE BUSINESS CUSTOMERS AND TWO MILLION RETAIL BANKING CLIENTS TO LURE CONVERTS TO THEIR SERVICES AND M. C. I. CAN TAP INTO THE BANAMEX PRIVATE MICROWAVE AND SATELLITE NETWORK THROUGH WHICH CLIENTS ELECTRONICALLY TRANSFER FUNDS AND USE AUTOMATED TELLER MACHINES M. C. I. WHICH RECENTLY LAUNCHED A TWENTY BILLION DOLLAR NETWORK EXPANSION PLAN IS LINKED OPERATIONALLY WITH STENTOR THE LONG DISTANCE CARRIER RUN BY THE CANADIAN PHONE COMPANIES INCLUDING BELL CANADA AND M. C. I. HAS BONDED WITH U. K. GIANT BRITISH TELECOMMUNICATIONS P. L. C. WHICH PLANS TO SPEND FOUR POINT THREE BILLION DOLLARS FOR A TWENTY PERCENT STAKE IN THE WASHINGTON D. C. CARRIER IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TELMEX AMERICAN DEPOSITARY SHARES CLOSED AT SIXTY EIGHT DOLLARS AND FIFTY CENTS DOWN ONE DOLLAR AND TWENTY FIVE CENTS CRAIG TORRES IN MEXICO CITY CONTRIBUTED TO THIS ARTICLE FUTURE HEALTHCARE INCORPORATED SAID IT COMPLETED THE PUBLIC OFFERING OF ONE MILLION THREE HUNDRED FIFTY NINE THOUSAND FIVE HUNDRED COMMON SHARES AT TWELVE DOLLARS AND TWENTY FIVE CENTS EACH THE PROVIDER OF CLINICAL TRIAL SERVICES TO THE PHARMACEUTICAL INDUSTRY SAID IT OFFERED EIGHT HUNDRED THOUSAND OF THE SHARES WITH THE REMAINING FIVE HUNDRED FIFTY NINE THOUSAND FIVE HUNDRED BEING OFFERED BY SHAREHOLDER CHRISTOPHER L. WHITE UNDERWRITERS LED BY MONNESS CRESPI HARDT AND COMPANY NEW YORK EXERCISED AN OPTION TO PURCHASE AN ADDITIONAL EIGHTY THOUSAND SHARES TO COVER OVER ALLOTMENTS FUTURE HEALTHCARE SAID NET PROCEEDS OF THE OFFERING WHICH ARE EXPECTED TO BE TEN MILLION DOLLARS WILL BE USED TO REPAY ABOUT ONE POINT ONE MILLION DOLLAR PRINCIPAL AMOUNT OF DEBT AND TO ENHANCE COMPUTER TELECOMMUNICATIONS AND RELATED CAPITAL EQUIPMENT WITH THE BALANCE TO BE USED AS WORKING CAPITAL THE COMPANY SAID THAT AFTER COMPLETION OF THE OFFERING IT WILL HAVE SEVEN MILLION SIX HUNDRED FIFTY FIVE THOUSAND FIVE HUNDRED TWENTY FIVE COMMON SHARES OUTSTANDING GLASER CAPITAL CORPORATION CINCINNATI WAS THE LEAD UNDERWRITER FOR THE RECENTLY COMPLETED COMMON STOCK OFFERING OF FUTURE HEALTHCARE INCORPORATED ALSO BASED IN CINCINNATI AN ARTICLE WEDNESDAY INCORRECTLY IDENTIFIED THE LEAD UNDERWRITER AS MONNESS CRESPI HARDT AND COMPANY NEW YORK ALAMO GROUP INCORPORATED SAID IT HAS REACHED AN AGREEMENT TO ACQUIRE ALL THE SHARES OF SMA A FRENCH MAKER OF HEAVY DUTY TRACTOR MOUNTED MOWING EQUIPMENT FOR FOUR POINT THREE MILLION DOLLARS ALAMO WHICH ALSO MAKES TRACTOR MOUNTED EQUIPMENT SAID THE ACQUISITION IS CONSIDERED A FOREIGN DIRECT INVESTMENT AND REQUIRES FRENCH GOVERNMENT APPROVAL SMA HAD NINETEEN NINETY THREE SALES OF SEVEN POINT TWO MILLION DOLLARS ON THE NASDAQ STOCK MARKET ALAMO SHARES CLOSED AT FOURTEEN DOLLARS AND SEVENTY FIVE CENTS DOWN THIRTY SEVEN POINT FIVE CENTS SALES OF PREVIOUSLY OWNED HOMES CONTINUED THEIR RECORD CLIMB IN DECEMBER RISING SIX POINT SEVEN PERCENT FROM THE PREVIOUS MONTH EVEN SALES IN HARD HIT CALIFORNIA REBOUNDED TO THE HIGHEST LEVEL IN NEARLY FOUR YEARS ANALYSTS ATTRIBUTED THE RECORD TO GREATER CONSUMER CONFIDENCE AND A RUSH TO PURCHASE HOMES ON FEARS THAT INTEREST RATES WERE MOVING UP THE CONTINUED IMPROVEMENT IN CONSUMER SPIRITS WAS ALSO REFLECTED IN THE LATEST SURVEY BY THE CONFERENCE BOARD THE BUSINESS RESEARCH GROUP'S CONSUMER CONFIDENCE INDEX ROSE TO EIGHTY THREE POINT TWO IN JANUARY FROM SEVENTY NINE POINT EIGHT IN DECEMBER SINCE OCTOBER THIS MEASURE OF CONSUMER OPTIMISM HAS RISEN ROUGHLY TWENTY THREE POINTS DESPITE THE INCREASE THERE ARE STILL NAGGING WORRIES ABOUT THE JOB MARKET MORE THAN A THIRD OF THE FIVE THOUSAND SURVEY PARTICIPANTS FELT THAT JOBS WERE HARD TO GET DURING JANUARY AND ONLY A SMALL PERCENTAGE EXPECT LABOR CONDITIONS TO IMPROVE IN THE COMING MONTHS STILL OPTIMISM INCREASED IN ALL REGIONS OF THE COUNTRY THIS MONTH EXCEPT FOR QUOTE WEST NORTH CENTRAL QUOTE WHICH INCLUDES MINNESOTA IOWA AND KANSAS SALES OF EXISTING SINGLE FAMILY HOMES SOARED TO A SEASONALLY ADJUSTED ANNUAL RATE OF FOUR MILLION FOUR HUNDRED NINETY THOUSAND FROM A REVISED PACE OF FOUR MILLION TWO HUNDRED TEN THOUSAND IN NOVEMBER ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS THE DECEMBER SALES PACE JUMPED ELEVEN POINT ONE PERCENT FROM A YEAR EARLIER LAST YEAR HOME SALES TOTALED THREE POINT EIGHT MILLION A SEVEN POINT NINE PERCENT INCREASE FROM NINETEEN NINETY TWO AND THE MOST SINCE NINETEEN SEVENTY NINE WHEN THE FIGURE WAS THREE MILLION EIGHT HUNDRED THIRTY THOUSAND DEMAND IS GOOD INTEREST RATES ARE VERY FRIENDLY WE'RE LOOKING AT A CONTINUED GOOD MARKET SAID JOHN TUCCILLO THE CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF REALTORS THE WEST WHICH HAS SOME OF THE BEST MARKETS IN THE COUNTRY BUT HAD BEEN DRAGGED DOWN BECAUSE OF POOR SALES IN CALIFORNIA POSTED THE SECOND BEST GAINS IN DECEMBER WHILE PRICES REMAINED VIRTUALLY FLAT THE RESALE RATE FOR THE WEST CLIMBED THIRTEEN POINT EIGHT PERCENT IN DECEMBER FROM A YEAR EARLIER CALIFORNIA'S EXISTING HOME SALES JUMPED TWELVE POINT ONE PERCENT FROM NOVEMBER AND THIRTEEN POINT TWO PERCENT FROM A YEAR EARLIER ACCORDING TO THE CALIFORNIA ASSOCIATION OF REALTORS THAT WAS THE HIGHEST LEVEL OF ACTIVITY SINCE FEBRUARY NINETEEN NINETY BEFORE THE QUAKE THE CALIFORNIA MARKETS WERE REALLY STABILIZING ESPECIALLY IN THE NORTH SAID MR. TUCCILLO MR. TUCCILLO SAID THE COLD SPELL THAT HIT MOST OF THE COUNTRY IN JANUARY AND THE EARTHQUAKE THAT SHOOK LOS ANGELES WOULD DRIVE DOWN JANUARY'S HOME SALES PACE I'M NOT REAL OPTIMISTIC ABOUT GETTING HOUSING TO THIS NUMBER NEXT MONTH HE SAID THE JANUARY NUMBERS WILL BE SIGNIFICANTLY DEPRESSED IN DECEMBER THE MIDWEST LED THE COUNTRY WITH A FIFTEEN POINT TWO PERCENT INCREASE IN THE PACE OF SALES THE SOUTH GREW NINE POINT FOUR PERCENT THE NORTHEAST WHICH HAD ALSO BEEN LAGGING BEHIND IN THE NATIONAL RECOVERY BECAUSE OF POOR JOB GROWTH ROSE FOUR POINT EIGHT PERCENT ANALYSTS SAID THE STRONG SALES WERE EXPECTED GIVEN THE ROBUST ACTIVITY SPURRED BY MORTGAGE RATES THAT ARE HOVERING AT A TWENTY YEAR LOW BUT INGO WINZER PUBLISHER OF THE LOCAL MARKET MONITOR WHICH TRACKS HOUSING ACTIVITY SAID THE STRENGTH OF THE HOUSING RECOVERY IN MANY PARTS OF THE COUNTRY IS STILL BEING UNDERMINED BY THE RELATIVE WEAKNESS OF CALIFORNIA AND NEW ENGLAND WITHOUT CALIFORNIA AND IF NEW ENGLAND HAD AN EARTHQUAKE AND DROPPED INTO THE ATLANTIC THE ECONOMY WOULD LOOK MUCH BETTER THAN MANY PEOPLE THINK HE SAID WHILE CALIFORNIA SALES ARE COMING BACK MR. WINZER SAID PRICES AREN'T UNLIKE THE REST OF THE NATION WHICH IS SEEING A MORE ROBUST REBOUND POWERED BY JOB GROWTH TODAY MUCH ATTENTION WILL BE FOCUSED ON LAST NIGHT'S STATE OF THE UNION MESSAGE WITH EMPHASIS NO DOUBT FALLING ON DOMESTIC ISSUES PRESIDENT CLINTON'S FAVORITES BUT THE PRESIDENT'S FOREIGN AGENDA SHOULD NOT BE FORGOTTEN HIS CONCESSIONS TO RUSSIAN SENSIBILITIES AT HIS MEETINGS IN BRUSSELS AND MOSCOW EARLIER THIS MONTH THREATEN TO STRENGTHEN RATHER THAN REDUCE THE DIVISION OF EUROPE AND TO LEAD TO A REGIME IN RUSSIA THAT COULD IGNITE A NEW COLD WAR IN PAST WEEKS THE PRESIDENT HAS DONE DESTRUCTIVE WORK BY REFUSING TO EXTEND NATO MEMBERSHIP EAST OUT OF CONCERN THAT IT WOULD UNDERMINE BORIS YELTSIN MR. CLINTON HAS IN FACT SIGNALED THAT THERE ARE STILL TWO EUROPES NOT ONE AND BY ACQUIESCING TO RUSSIAN DEMANDS THAT MOSCOW BE ALLOWED TO INTERVENE MILITARILY IN THE FORMER SOVIET REPUBLICS IN THE GUISE OF QUOTE PEACEKEEPING QUOTE HE HAS SET IN MOTION PRESSURES THAT WILL PRECLUDE STABILITY IN THE REGION AND THE ESTABLISHMENT OF RUSSIAN DEMOCRACY AND HE HAS SET THE STAGE FOR RENEWED RUSSIAN AMERICAN COMPETITION IF THE FIRST OF THESE ACTIONS HAS BEEN MUCH DISCUSSED THE SECOND ESPECIALLY ITS IMPLICATIONS FOR RUSSIA'S NEIGHBORS FOR RUSSIA ITSELF AND FOR US HAS BEEN LARGELY IGNORED BUT IN FACT IT IS LIKELY TO HAVE EVEN MORE FATEFUL IMPLICATIONS OF COURSE NO ONE WOULD DISPUTE THAT RUSSIA HAS LEGITIMATE INTERESTS IN THESE COUNTRIES THAT SHOULD BE TAKEN INTO ACCOUNT BUT WE SHOULD NOT CONCEDE TO RUSSIA A RIGHT TO BEHAVE TOWARD ITS NEIGHBORS IN WAYS THAT WE WOULD NOT ALLOW ANY OTHER COUNTRY TO GET AWAY WITH INDEED RUSSIAN CLAIMS OF A RIGHT TO INTERVENE IN FORMER SOVIET SPACE REPRESENT AS IT WERE A REVIVAL OF THE BREZHNEV DOCTRINE THE NOTION THAT THE SOVIET STATE HAD THE RIGHT TO INTERVENE IN ANY SOCIALIST COUNTRY TO DEFEND THE STATUS QUO THESE DAYS VIRTUALLY EVERYONE RECOGNIZES THAT THIS DOCTRINE WAS HARMFUL NOT ONLY FOR EASTERN EUROPE BUT FOR THE SOVIET UNION AS WELL YET SIMILARITIES IN THE CURRENT SCENARIO HAVE NOT BEEN UNDERSTOOD BY PRESIDENT CLINTON OR HIS ADVISERS INSTEAD MR. CLINTON STROBE TALBOTT THE PRESIDENT'S NOMINEE FOR DEPUTY SECRETARY OF STATE AND CURRENTLY A STATE DEPARTMENT SPECIAL ADVISER AND THE U. S. AMBASSADOR IN MOSCOW THOMAS PICKERING HAVE CHARACTERIZED RUSSIAN MILITARY INVOLVEMENT IN THESE COUNTRIES AS STABILIZING THIS EVEN WHEN RUSSIAN FORCE HAS BEEN USED TO SEIZE TERRITORY OR OVERTHROW GOVERNMENTS MOREOVER THEY HAVE FAILED TO RESPOND TO RUSSIAN FOREIGN MINISTER ANDREI KOZYREV'S DEMANDS THAT RUSSIA HAVE THE RIGHT TO SEND PEACEKEEPERS INTO ALL FORMER SOVIET REPUBLICS AND THAT THE INTERNATIONAL COMMUNITY PAY FOR THIS MR. KOZYREV INCIDENTALLY MADE THIS CLAIM NOT ONLY IN A PRIVATE MEETING THAT THE RUSSIAN GOVERNMENT HAS DENIED TO THE RELIEF OF WASHINGTON BUT IN A JANUARY FOURTEENTH ARTICLE IN THE RUSSIAN ARMY NEWSPAPER AS THIS NEWSPAPER'S EUROPEAN EDITION REPORTED EARLY THIS MONTH MR. CLINTON IS PREPARED TO BE EXTREMELY SOLICITOUS TO RUSSIAN INSISTENCE ON THIS POINT WHEN PRESSED BY HIS ADVISERS TO URGE RESTRAINT ON THE KREMLIN MR. CLINTON RESPONDED THAT YOU ARE RIGHT ON THE POLICY BUT WENT ON TO SAY THAT EVERYONE MUST UNDERSTAND WHAT THE RUSSIANS ARE GOING THROUGH CALLS FOR UNDERSTANDING ARE FINE BUT THEY MISS THE POINT PRECISELY BECAUSE THE STATES OF THE FORMER SOVIET UNION WERE SO INTEGRATED IN THE PAST AND BECAUSE THERE ARE NOT ONLY TWENTY FIVE MILLION RUSSIANS LIVING OUTSIDE THE RUSSIAN FEDERATION BUT ALSO THIRTY FIVE MILLION NON RUSSIANS LIVING OUTSIDE THEIR HOME TERRITORIES THE DIVORCE BETWEEN RUSSIA AND SUCH STATES AS THE BALTICS NEEDS TO BE CLEAN AND NONVIOLENT UNLESS THAT HAPPENS AND UNLESS WE AND THE REST OF THE INTERNATIONAL COMMUNITY INSIST THAT RUSSIA BEHAVE AS WE WOULD EXPECT OTHERS TO BEHAVE THE RISKS ARE ALL TOO GREAT THAT THE SITUATION WILL SPIRAL OUT OF CONTROL AND THAT WE WILL SEE THE RESTORATION OF A SINGLE ENTITY UNSTABLE WITHIN AND HOSTILE TO US ABROAD THE FIRST VICTIMS WILL BE THE NON RUSSIAN STATES RUSSIAN PRESSURE ON THE FOURTEEN NEW COUNTRIES IS ALREADY CREATING A DISASTER FIRST IT IS UNDERMINING THE LEGITIMACY OF THESE GOVERNMENTS IN THE EYES OF THEIR OWN POPULATIONS THUS REDUCING STILL FURTHER THEIR ABILITY TO MANAGE THE DIFFICULT TRANSITIONS WE ARE URGING ON THEM SECOND IT IS LEADING TO THE BIRTH OF ANTI RUSSIAN NATIONALISM AMONG THESE POPULATIONS WHEN THE SOVIET UNION COLLAPSED THERE WERE VIRTUALLY NO PHYSICAL ATTACKS ON RUSSIANS NOW THERE ARE LIKELY TO BE WHICH WILL MAKE RUSSIAN MILITARY INTERVENTION MORE LIKELY NOT LESS OUR FAILURE TO OPPOSE RUSSIAN MILITARY INTERVENTION ABSOLUTELY IS REDUCING OUR INFLUENCE IN MANY OF THESE COUNTRIES BECAUSE THEIR POPULATIONS INCREASINGLY VIEW US AS ASSISTING THE RUSSIAN RECONQUEST THE NEXT VICTIM IS RUSSIA ITSELF A NEWLY MILITARISTIC RUSSIA WILL MEAN THAT RUSSIA WILL HAVE TO MAINTAIN A LARGER DEFENSE SECTOR IN ORDER TO CONTROL THE SITUATION AND THAT THE MILITARY WILL HAVE A LARGER SAY IN WHAT GOES ON BOTH THESE THINGS WILL MAKE THE TRANSITION TO A MARKET ECONOMY AND A DEMOCRACY FAR MORE DIFFICULT BUT THE CHANGE ALSO MEANS THAT RUSSIANS WILL NOT HAVE TO COME TO TERMS WITH THEIR OWN PLACE IN THE WORLD WITH THE FACT THAT RUSSIA SHOULD BECOME A COUNTRY NOT A CAUSE THE STRONG SHOWING OF VLADIMIR ZHIRINOVSKY IS A SYMPTOM OF THIS NOT ITS SOURCE AS SO MANY IN THE ADMINISTRATION SEEM TO THINK BUT THE FINAL VICTIMS WILL BE EUROPE AND THE U. S. AND THE HOPES FOR PEACE AND PROSPERITY IN THE FUTURE JUST AS A LIBERAL AND FRIENDLY SOVIET UNION PROVED TO BE A CONTRADICTION IN TERMS SO TOO WILL BE A QUOTE LIBERAL QUOTE RUSSIAN EMPIRE PURSUING WHAT ITS DEFENDERS IN MOSCOW AND THE WEST SEE AS A BENIGN QUOTE MONROESKI DOCTRINE QUOTE IN SHORT BY CATERING TO RUSSIAN SENSITIVITIES WE ARE NOT DOING ANYONE ANY FAVORS NOT THE NON RUSSIANS NOT RUSSIA ITSELF AND CERTAINLY NOT OURSELVES MR. GOBLE FORMERLY STATE DEPARTMENT SPECIAL ADVISER FOR SOVIET NATIONALITY PROBLEMS AND BALTIC AFFAIRS IS A SENIOR ASSOCIATE OF THE WASHINGTON BASED CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE WESTMORELAND ENERGY INCORPORATED AND L. G. AND E. POWER INCORPORATED SAID THEY HAVE COMPLETED FINANCING FOR A NINETY THREE POINT THREE MILLION DOLLAR JOINT VENTURE INDEPENDENT POWER PROJECT IN ROANOKE VIRGINIA THE JOINT VENTURE WILL CONSTRUCT A FORTY FOUR MEGAWATT COAL FIRED COGENERATION FACILITY AND SELL ELECTRICITY TO NORTH CAROLINA POWER A UNIT OF DOMINION RESOURCES INCORPORATED AND STEAM TO PATCH RUBBER COMPANY A UNIT OF MYERS INDUSTRIES INCORPORATED AKRON OHIO WESTMORELAND COAL COMPANY PARENT OF WESTMORELAND ENERGY WILL PROVIDE SEVENTY NINE POINT FIVE PERCENT OF THE PROJECT'S COAL REQUIREMENTS L. G. AND E. POWER A UNIT OF L. G. AND E. ENERGY CORPORATION LOUISVILLE KENTUCKY SPECIALIZES IN DEVELOPING COGENERATION POWER PROJECTS L. G. AND E. ENERGY IS A UTILITY HOLDING COMPANY EAB A BANKING COMPANY REPORTED FOURTH QUARTER EARNINGS OF SEVENTEEN POINT FOUR MILLION DOLLARS UP ONE POINT TWO PERCENT FROM THE YEAR EARLIER PROFIT FOR ALL OF NINETEEN NINETY THREE CLIMBED TWENTY TWO PERCENT TO SIXTY SEVEN POINT ONE MILLION DOLLARS EAB WHICH HAS ASSETS OF SIX BILLION DOLLARS IS A UNIT OF A. B. N. AMRO BANK N. V. THE DUTCH BANKING CONCERN EARNINGS WERE HELPED BY A DECLINE IN THE PROVISION FOR LOAN LOSSES AND A PICKUP IN OTHER REVENUE SUCH AS SERVICE CHARGES NET INTEREST INCOME DECLINED SLIGHTLY IN THE QUARTER AND ROSE A BIT FOR THE FULL YEAR UNILAB CORPORATION COMPLETED ITS ACQUISITION OF PREMIER LABORATORY SERVICES INCORPORATED THE PARENT COMPANY OF PATHLAB UNILAB A MEDICAL TESTING CONCERN SAID THE PURCHASE PRICE IS THIRTY ONE POINT FIVE MILLION DOLLARS IN CASH AND SEVEN POINT FIVE MILLION DOLLARS IN UNILAB COMMON STOCK UNILAB SAID IT WILL OPERATE UNDER THE PATHLAB NAME IN THE SAN JOSE AND SAN FRANCISCO AREAS PATHLAB BASED IN SAN JOSE CALIFORNIA HAS CURRENT ANNUAL SALES OF ABOUT TWENTY TWO MILLION DOLLARS ON THE NASDAQ STOCK MARKET UNILAB SHARES CLOSED AT SIX DOLLARS UNCHANGED U. S. A. NETWORKS INTERNATIONAL A DIVISION OF U. S. A. NETWORKS SAID IT WILL LAUNCH A TWENTY FOUR HOUR SPANISH LANGUAGE GENERAL ENTERTAINMENT CABLE TELEVISION NETWORK IN LATIN AMERICA IN APRIL U. S. A. A FIFTY TO FIFTY JOINT VENTURE OF PARAMOUNT COMMUNICATIONS INCORPORATED NEW YORK AND MATSUSHITA ELECTRIC INDUSTRIAL COMPANY'S M. C. A. INCORPORATED LOS ANGELES SAID PARAMOUNT AND M. C. A.'S UNIVERSAL STUDIOS WILL SUPPLY PROGRAMMING IN ADDITION TO U. S. A.'S OWN PROGRAMMING THE COMPANY IS WORKING WITH OPERATORS AND PROGRAM DISTRIBUTORS INCLUDING MULTIVISION OF MEXICO PRODUFE OF ARGENTINA AND CABLEVISION OF VENEZUELA TO CARRY AND DISTRIBUTE THE PROGRAMMING TWO LARGE CALIFORNIA THRIFTS BENEFITING FROM SIGNS OF RECOVERY IN CALIFORNIA'S ECONOMY POSTED HEALTHY OPERATING RESULTS FOR THE FOURTH QUARTER OAKLAND BASED GOLDEN WEST FINANCIAL CORPORATION PARENT OF WORLD SAVINGS AND LOAN ASSOCIATION EARNED SIXTY SEVEN POINT NINE MILLION DOLLARS OR ONE DOLLAR AND SIX CENTS A SHARE DOWN TWO POINT NINE PERCENT FROM SIXTY NINE POINT NINE MILLION DOLLARS OR ONE DOLLAR AND TEN CENTS A SHARE FOR THE YEAR EARLIER PERIOD IRWINDALE BASED H. F. AHMANSON AND COMPANY PARENT OF HOME SAVINGS OF AMERICA SAID EARNINGS ALMOST DOUBLED TO TWENTY EIGHT POINT FIVE MILLION DOLLARS OR FOURTEEN CENTS A SHARE FROM FIFTEEN POINT FIVE MILLION DOLLARS OR TEN CENTS A SHARE ANALYSTS SAID THE RESULTS WERE ROUGHLY IN LINE WITH EXPECTATIONS WITH GOLDEN WEST PERFORMING SLIGHTLY BETTER THAN EXPECTED AND AHMANSON SLIGHTLY WORSE GOLDEN WEST BLAMED ITS FLAT EARNINGS PARTLY ON CALIFORNIA'S REAL ESTATE RECESSION THE COMPANY'S RESULTS WERE AIDED BY A ONE TIME GAIN OF SEVENTEEN MILLION DOLLARS BECAUSE OF A REDUCTION IN THE VALUE OF AN INVESTMENT ALLOWANCE CHARGED AGAINST INCOME IN PREVIOUS YEARS THE COMPANY ALSO STRENGTHENED ITS PROVISION FOR LOAN LOSSES AND REDUCED INCOME BY NINE MILLION DOLLARS TO FORM A RESERVE FOR THE RELOCATION OF SELECTED BRANCH OFFICES AHMANSON'S EARNINGS WERE AFFECTED BY A NONRECURRING CHARGE OF TWENTY ONE POINT SIX MILLION DOLLARS RESULTING FROM THE EARLY RETIREMENT OF THREE HUNDRED TWENTY FIVE MILLION DOLLARS OF HOME SAVINGS DEBT THE COMPANY'S ASSET QUALITY IMPROVED DURING THE QUARTER WITH NONPERFORMING ASSETS EQUALLING ONE POINT EIGHT NINE PERCENT OF TOTAL ASSETS THE LOWEST LEVEL SINCE JANUARY NINETEEN NINETY ONE QUOTE THIS IS A TURNAROUND QUOTE JOSEPH JOLSON AN ANALYST AT MONTGOMERY SECURITIES SAID OF AHMANSON BUT IT IS TO SOME EXTENT A TURNAROUND TIED TO THE SOUTHERN CALIFORNIA ECONOMY WHOSE PROSPECTS ARE UNCERTAIN IN THE WAKE OF THIS MONTH'S BIG EARTHQUAKE FOR THE YEAR AHMANSON REPORTED A NET LOSS OF ONE HUNDRED FIFTY NINE POINT SIX MILLION DOLLARS OR ONE DOLLAR AND SIXTY NINE CENTS A SHARE FOR NINETEEN NINETY THREE COMPARED WITH EARNINGS OF TWO HUNDRED FOUR POINT ONE MILLION DOLLARS OR ONE DOLLAR AND SIXTY CENTS A SHARE FOR NINETEEN NINETY TWO GOLDEN WEST POSTED EARNINGS OF TWO HUNDRED SEVENTY THREE POINT NINE MILLION DOLLARS OR FOUR DOLLARS AND TWENTY EIGHT CENTS A SHARE FOR NINETEEN NINETY THREE DOWN THREE POINT FIVE PERCENT FROM TWO HUNDRED EIGHTY THREE POINT FIVE MILLION DOLLARS OR FOUR DOLLARS AND FORTY SIX CENTS A SHARE FOR NINETEEN NINETY TWO IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AHMANSON STOCK ROSE TWENTY FIVE CENTS OR ONE POINT FOUR PERCENT TO CLOSE AT EIGHTEEN POINT SIX TWO FIVE DOLLARS A SHARE WHILE GOLDEN WEST STOCK FELL TWELVE POINT FIVE CENTS OR ZERO POINT THREE PERCENT TO CLOSE AT FORTY THREE POINT SIX TWO FIVE DOLLARS DAVID P. SIMPSON WAS NAMED A DIRECTOR OF THIS FOREST PRODUCTS COMPANY EXPANDING THE BOARD TO NINE MEMBERS MR. SIMPSON THIRTY TWO YEARS OLD MANAGES FOREST LAND INTERESTS IN EAST TEXAS OWNS A PUBLISHING COMPANY AND IS MAYOR OF AVINGER TEXAS HE IS THE SON OF PHIL SIMPSON REPUBLIC'S CHAIRMAN A LAWYER COMMISSIONED TO CONDUCT AN INQUIRY INTO THE SCANDAL RIDDEN VANCOUVER STOCK EXCHANGE IS RECOMMENDING THAT THE BRITISH COLUMBIA GOVERNMENT MAKE SWEEPING CHANGES IN THE WAY THE MARKET IS REGULATED JAMES MATKIN APPOINTED BY THE PROVINCIAL GOVERNMENT LAST MAY IN THE WAKE OF NEW SCANDALS AND DEATH THREATS AGAINST A VANCOUVER BUSINESS REPORTER IS PROPOSING THAT THE GOVERNMENT DISMANTLE THE NINE YEAR OLD BRITISH COLUMBIA SECURITIES COMMISSION IN ITS PLACE MR. MATKIN RECOMMENDS THAT THE GOVERNMENT ESTABLISH A SECURITIES AND EXCHANGE BOARD QUOTE THE BCSC'S CREDIBILITY IN THE BUSINESS COMMUNITY HAS BEEN ERODED QUOTE MR. MATKIN SAID IN HIS REPORT IT HAS BEEN HE ARGUED TOO PASSIVE IN ITS REGULATORY ACTIVITY AND OVER OCCUPIED WITH THE PROSECUTION AND ADJUDICATION OF SECURITIES ABUSE A BETTER SYSTEM MR. MATKIN SAID IS ONE THAT ALLOWS REGULATORS THEMSELVES NOT ONLY TO SEEK OUT AND PUNISH THOSE WHO VIOLATE RULES BUT TO DEVELOP WAYS TO PREVENT VIOLATIONS FROM OCCURRING HE MAINTAINED THAT REGULATORY SYSTEMS THAT WORK WELL ELSEWHERE IN CANADA MAY NOT BE THE ANSWER IN VANCOUVER IN MANY WAYS THE PROPOSED SECURITIES AND EXCHANGE BOARD WOULD BEAR MORE RESEMBLANCE TO THE U. S. SECURITIES AND EXCHANGE COMMISSION THAN TO ANY CANADIAN REGULATORY BODY FOR EXAMPLE MR. MATKIN'S KEY PROPOSAL IS TO SEPARATE POLICY MAKING AND ADJUDICATION RESPONSIBILITIES AT THE NEW REGULATORY BODY UNDER HIS PLAN ADMINISTRATIVE LAW JUDGES WOULD HANDLE THE LATTER FREEING MEMBERS OF THE BOARD TO DEVELOP SOLUTIONS FOR SOME OF THE VANCOUVER EXCHANGE'S CHRONIC PROBLEMS MARKET MANIPULATION AND INSIDER TRADING AMONG THEM MR. MATKIN SAID HE HOPES A BIFURCATED SYSTEM WOULD ATTRACT NEW TYPES OF BOARD MEMBERS TO THE REGULATORY ARENA SUCH AS LAWYERS ACCOUNTANTS AND MONEY MANAGERS WHO WOULDN'T HAVE THE TIME OR INTEREST IN THE ADJUDICATION RESPONSIBILITIES BUT WHO WOULD BE OF GREAT ASSISTANCE IN POLICY MAKING OTHER RECOMMENDATIONS CONTAINED IN MR. MATKIN'S FINAL REPORT RANGE FROM REGULATING VANCOUVER'S NOTORIOUS FREEWHEELING STOCK PROMOTERS TO GIVING INVESTORS ACCESS TO REAL TIME REPORTS ON TRADING ACTIVITY BY CORPORATE INSIDERS CURRENTLY ABOUT HALF OF THAT DATA IS FILED VERY LATE OR NOT AT ALL MR. MATKIN SAID MR. MATKIN ALSO PROPOSES ENSURING THAT BROKERS HAVE THE NEEDED STAFF TO CONDUCT DUE DILIGENCE REVIEWS IN ADDITION HE WANTS TO ALLOW AGGRIEVED INVESTORS TO FILE CLASS ACTION SUITS MR. MATKIN'S PROPOSALS ARE LIKELY TO COME IN FOR A ROUGH RIDE IN VANCOUVER WHERE UNSURPRISINGLY REGULATORS ARE UNITED IN THEIR DISLIKE OF MR. MATKIN'S KEY PROPOSAL THE NEW SECURITIES BOARD FRANK GIUSTRA PRESIDENT OF YORKTON SECURITIES INCORPORATED ONE OF THE LARGEST VANCOUVER BASED BROKERAGE FIRMS SAID HE AGREES ONLY WITH MR. MATKIN'S LISTING OF THE PROBLEMS FACING REGULATORS IN VANCOUVER BUT HE HASN'T OFFERED A SOLUTION TO THOSE PROBLEMS MR. GIUSTRA SAID INSTEAD HE'S PROPOSING AN ELABORATE COSTLY TIME CONSUMING NEW REGULATORY STRUCTURE IF THAT'S ALL HE'S SAYING WE'VE WASTED A LOT OF TIME AND MONEY JOHN WOODS EDITOR OF CANADA STOCKWATCH A VANCOUVER BASED NEWSLETTER BELIEVES MR. MATKIN COULDN'T HAVE SOLVED THE PROBLEMS JUST BY RECOMMENDING MORE RESOURCES FOR THE SECURITIES COMMISSION AS MR. GIUSTRA AND OTHERS WOULD HAVE LIKED WE REALLY NEED SUBSTANTIVE CHANGES AT THE TOP IF WE'RE EVER GOING TO CONVINCE INVESTORS THAT REAL CHANGES ARE HAPPENING NOT JUST RHETORIC MR. WOODS SAID THE FUTURE OF MR. MATKIN'S RECOMMENDATIONS NOW LIES WITH BRITISH COLUMBIA'S SOCIALIST GOVERNMENT WHILE A NINETEEN SEVENTY EIGHT REPORT DRAWING SIMILAR CONCLUSIONS ABOUT THE NEED FOR REFORM FELL ON DEAF EARS THE NEW DEMOCRATIC PARTY EMBARRASSED BY NEGATIVE PUBLICITY AND CRITICAL OF THE EXCHANGE IN THE PAST MAY FIND IT DIFFICULT NOT TO IMPLEMENT REFORMS ELECTRONIC DATA SYSTEMS CORPORATION SAID IT BOUGHT A THIRTY ONE POINT SEVEN PERCENT STAKE IN EUROPE'S IBOS ELECTRONIC BANKING SYSTEM IBOS WHICH STANDS FOR INTER BANK ONLINE SYSTEM WAS DEVELOPED BY SPAIN'S BANCO SANTANDER AND THE ROYAL BANK OF SCOTLAND GROUP P. L. C. TO PROVIDE HIGH SPEED ELECTRONIC BANKING SERVICES ACROSS NATIONAL BORDERS UNDER THE DEAL WITH E. D. S. A UNIT OF GENERAL MOTORS CORPORATION THE TWO FOUNDING BANKS WILL EACH KEEP A THIRTY ONE POINT SEVEN PERCENT STAKE IN THE VENTURE GOLDMAN SACHS AND COMPANY THE U. S. INVESTMENT BANK THAT SERVES AS IBOS'S FINANCIAL ADVISER WILL HOLD THE REMAINING FIVE PERCENT E. D. S. DECLINED TO SAY HOW MUCH IT PAID FOR ITS ONE THIRD STAKE ROYAL BANK AND SANTANDER OFFICIALS NOTED THAT THE TWO BANKS HAVE SPENT AROUND EIGHT MILLION POUNDS TWELVE MILLION DOLLARS ON IBOS OVER THE PAST FOUR YEARS THE SYSTEM SERVES FOUR BANKING COMPANIES WITH MORE THAN TWO THOUSAND SIX HUNDRED LOCATIONS IN THE UNITED KINGDOM SPAIN FRANCE AND PORTUGAL THOMAS METZ A FORMER E. D. S. OFFICIAL WHO SERVES AS IBOS'S DIRECTOR OF GLOBAL BUSINESS DEVELOPMENT SAID HE EXPECTS THE SYSTEM TO EXPAND INTO THE U. S. WITHIN SIX MONTHS TWO U. S. BANKS MELLON BANK CORPORATION AND FIRST FIDELITY BANCORP HAVE SIGNED LETTERS OF INTENT TO JOIN THE SYSTEM AS HAS A SANTANDER SUBSIDIARY IN PUERTO RICO THOUGH E. D. S. OFFICIALS' INITIAL IBOS INVESTMENT IS RELATIVELY SMALL THEY SAY IT IS PART OF A CONCENTRATED PUSH BY THE TECHNOLOGY CONCERN TO EXPAND ITS PRESENCE IN THE AREA OF INTERACTIVE ELECTRONIC BANKING IN A MOVE THAT WILL CHEER INSTITUTIONAL INVESTORS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SAID YESTERDAY THAT ITS BOARD OF GOVERNORS APPROVED GRANTING ACCESS FOR NON N. A. S. D. MEMBERS TO SELECTNET WHICH ALLOWS MEMBERS TO NEGOTIATE AND EXECUTE TRANSACTIONS VIA COMPUTER FOR NASDAQ LISTED STOCKS THE SELECTNET MODIFICATIONS WHICH WILL BE PRESENTED TO THE SECURITIES AND EXCHANGE COMMISSION FOR APPROVAL NEXT MONTH WOULD ALLOW MEMBERS AND NONMEMBERS ALIKE TO VIEW ANY BROADCAST OF AN ORDER BY A MARKET MAKER AND ITS EXECUTION N. A. S. D. SAID QUOTE NON MEMBERS WOULD NEED TO EXECUTE TRANSACTIONS VIA SELECTNET THROUGH MEMBER FIRMS QUOTE N. A. S. D. SAID ONLY MARKET MAKERS WOULD BE ABLE TO INTERACT WITH ORDERS FROM FIRMS THAT ARE NOT MARKET MAKERS IT ADDED INSTITUTIONAL INVESTORS HAD LOBBIED FOR THE CHANGE BECAUSE THEY SAW AMPLE OPPORTUNITY FOR IMPROVED PRICE DISCOVERY IN THE SYSTEM RICHARD KETCHUM N. A. S. D.'S CHIEF OPERATING OFFICER SAID ANYTIME THAT YOU CAN INCREASE THE AMOUNT OF PRICE AND VOLUME INFORMATION AVAILABLE TO THE PUBLIC INVESTORS AND TRADERS ALIKE GAIN INEVITABLE BENEFITS SEPARATELY N. A. S. D. SAID IT WOULD IMPLEMENT MODIFICATIONS TO NASDAQ'S SMALL ORDER EXECUTION SYSTEM BEGINNING NEXT MONDAY THE PATH FOR IMPLEMENTATION WAS CLEARED EARLIER THIS WEEK WHEN THE U. S. COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA DENIED MOTIONS FOR A STAY FROM PETITIONERS THE COURT SAID THE PETITIONERS HAD NOT DEMONSTRATED THE REQUISITE IRREPARIBLE INJURY DOW JONES AND COMPANY LAUNCHED AN ASIAN CORPORATE FINANCIAL NEWS SERVICE DISTRIBUTED THROUGH DOW JONES TELERATE A PROVIDER OF REAL TIME FINANCIAL INFORMATION THE NEWS SERVICE DOW JONES ASIAN EQUITIES REPORT WILL CONCENTRATE ON ASIAN BUSINESS AND FINANCIAL NEWS AND WILL COVER THE REGION'S TWELVE LEADING STOCK MARKETS AND NEWS AFFECTING THEM THE REPORT CURRENTLY AVAILABLE IN ASIA IS DELIVERED ON THE TELERATE DYNAQUOTE REGIONAL EQUITIES SERVICE AND IS ALSO AVAILABLE AS AN OPTIONAL SERVICE ON TELERATE MATRIX TELERATE WORKSTATION AND OTHER TELERATE SERVICES THESE SERVICES PROVIDE MARKET PRICES AND OTHER FINANCIAL INFORMATION DOW JONES ASIAN EQUITIES REPORT WILL BE AVAILABLE GLOBALLY AT A LATER DATE IN ADDITION TO ITS OWN STAFF DOW JONES ASIAN EQUITIES REPORT WILL USE REPORTERS FROM THE WALL STREET JOURNAL THE ASIAN WALL STREET JOURNAL AND THE FAR EASTERN ECONOMIC REVIEW TO PROVIDE COVERAGE AND ANALYSIS OF ASIAN COMPANIES MARKETS AND INDUSTRY SECTORS THE REPORT WILL ALSO DRAW ON THE RESOURCES OF A. P. DOW JONES A JOINT VENTURE OF THE ASSOCIATED PRESS AND DOW JONES A. P. DOW JONES OFFERS SEVERAL NEWS SERVICES WORLD WIDE DOW JONES BASED IN NEW YORK PUBLISHES THE WALL STREET JOURNAL BARRON'S THE FAR EASTERN ECONOMIC REVIEW AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES TELERATE AND COMMUNITY NEWSPAPERS ALONG WITH REAL TIME FINANCIAL INFORMATION DOW JONES TELERATE PROVIDES FINANCIAL ANALYSIS TOOLS AND TRANSACTION SERVICES TO THE INTERNATIONAL BUSINESS COMMUNITY AUTOMATIC DATA PROCESSING INCORPORATED NAMED ARTHUR F. WEINBACH PRESIDENT AND CHIEF OPERATING OFFICER OF THE DATA PROCESSING COMPANY AS CHIEF OPERATING OFFICER MR. WEINBACH FIFTY YEARS OLD SUCCEEDS JOSH S. WESTON SIXTY FIVE WHO WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE THE POSITION OF PRESIDENT HAS BEEN VACANT SINCE NINETEEN EIGHTY NINE WHEN FORMER PRESIDENT WILLIAM J. TURNER LEFT THE COMPANY TO JOIN LEVERAGED BUYOUT CONCERN FORSTMANN LITTLE AND COMPANY MR. WEINBACH HAS BEEN EXECUTIVE VICE PRESIDENT OF A. D. P. SINCE NINETEEN NINETY TWO AND WILL REMAIN A DIRECTOR OF THE COMPANY HE WILL FOCUS PRIMARILY ON OPERATING ISSUES MR. WESTON WHO WILL CONCENTRATE ON STRATEGIC OPPORTUNITIES SAID IN AN INTERVIEW HE HAS NO PLANS TO RETIRE NOTING THAT A. D. P. HAS NO COMPULSORY RETIREMENT POLICY HE BECAME PRESIDENT AND CHIEF EXECUTIVE IN NINETEEN EIGHTY TWO WHEN FORMER CHIEF EXECUTIVE FRANK LAUTENBERG WAS ELECTED TO THE U. S. SENATE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE A. D. P. CLOSED AT FIFTY TWO POINT SIX TWO FIVE DOLLARS DOWN TWELVE POINT FIVE CENTS A UNIT OF BANK OF BOSTON CORPORATION AGREED TO DISBURSE FORTY FIVE MILLION DOLLARS TO HOMEOWNERS FROM THEIR ESCROW ACCOUNTS TO SETTLE A CLASS ACTION SUIT THAT ALLEGED THE COMPANY HELD EXCESSIVE FUNDS IN THE ACCOUNTS THE UNIT BANCBOSTON MORTGAGE CORPORATION A MORTGAGE COMPANY BASED IN JACKSONVILLE FLORIDA ANNOUNCED PLANS TO SETTLE A SIMILAR SUIT BY THE FLORIDA ATTORNEY GENERAL LAST NOVEMBER IN BOTH LAWSUITS AND OTHERS FILED IN MORE THAN A DOZEN STATES HOMEOWNERS HAVE PRESSED BANK AND MORTGAGE COMPANIES TO CHANGE THEIR ACCOUNTING METHODS FOR ESCROW FUNDS PAID MONTHLY THE FUNDS ARE USED TO COVER INSURANCE AND PROPERTY TAXES GENERAL MOTORS CORPORATION'S FINANCE UNIT AND FLEET FINANCIAL GROUP INCORPORATED HAVE ALSO SETTLED WITH CONSUMERS BY RETURNING FUNDS HELD IN ESCROW PLAINTIFFS IN THESE CASES SUCCESSFULLY HAVE ARGUED FOR CHANGING TO AGGREGATE ACCOUNTING METHODS EFFECTIVELY CUTTING THE AMOUNT HELD FROM MONTH TO MONTH BY BANKS IN THE LATEST SUIT FILED IN STATE COURT IN MOBILE ALABAMA JUDGE BRAXTON L. KITTRELL JUNIOR RULED THAT BANCBOSTON MORTGAGE'S ESCROW ACCOUNT DEPOSIT REQUIREMENTS EXCEEDED THE REQUIREMENTS OF ITS MORTGAGE CONTRACTS UNDER THE SETTLEMENT IN WHICH BANCBOSTON MORTGAGE ADMITS NO GUILT AND PAYS NO DAMAGES EACH OF THE MORTGAGE CONCERN'S THREE HUNDRED FIFTEEN THOUSAND CUSTOMERS NATIONWIDE WILL RECEIVE AN AVERAGE REFUND OF ONE HUNDRED THIRTY DOLLARS BANCBOSTON MORTGAGE WILL ALSO REDUCE BY ABOUT NINETEEN PERCENT THE REQUIRED FUTURE BALANCE OF EACH ACCOUNT FRANK LORENZO WILL CUT HIS CONTROLLING STAKE OF HIS WOULD BE CARRIER ATX INCORPORATED BY BRINGING IN NEW INVESTORS IN AN ATTEMPT TO GET THE STARTUP AIRLINE OFF THE GROUND ODYSSEY PARTNERS A PRIVATE NEW YORK INVESTMENT FIRM WILL INVEST FIVE MILLION DOLLARS AND AN ADDITIONAL SEVEN POINT FIVE MILLION DOLLARS WAS RAISED IN A PRIVATE PLACEMENT ARRANGED BY KIDDER PEABODY AND COMPANY AND SAVOY CAPITAL INCORPORATED MR. LORENZO'S HOUSTON BASED VENTURE CAPITAL FIRM THOSE ACTIONS WILL CUT MR. LORENZO'S STAKE TO ABOUT TWENTY FOUR PERCENT FROM MORE THAN SEVENTY PERCENT ODYSSEY PARTNERS WILL HAVE ALMOST THE SAME AMOUNT AS MR. LORENZO AND THE OTHER NEW INVESTORS EACH WILL HAVE LESS THAN TEN PERCENT THE NEW INVESTORS WILL RECEIVE A NEW ISSUE OF CONVERTIBLE PREFERRED STOCK THAT WILL AGGREGATE TO FIFTY EIGHT PERCENT OF THE COMPANY'S EQUITY AND VOTING CONTROL THE MOVE APPEARS DESIGNED TO ELICIT AN APPROVAL FOR ATX FROM THE U. S. TRANSPORTATION DEPARTMENT AN ADMINISTRATIVE LAW JUDGE FOR THE DEPARTMENT RULED LAST MONTH THAT WHILE ATX WAS FINANCIALLY FIT MR. LORENZO WASN'T LIKELY TO COMPLY WITH RULES GOVERNING AIRLINES ATX SAYS THE LAW JUDGE'S RULING IS INCORRECT STEPHEN BERGER AN ODYSSEY PARTNER WILL BECOME ATX'S CHAIRMAN AND THE NEW INVESTORS WILL INCLUDE FORMER NEW YORK GOVERNOR HUGH CAREY DISQUE D. DEANE FORMER CHIEF EXECUTIVE AND CHAIRMAN EMERITUS OF CORPORATE PROPERTY INVESTORS WILLIAM E. JOHNSON FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SCIENTIFIC ATLANTA INCORPORATED THE THREE MEN ALSO WILL BE ADDED TO ATX'S BOARD OTHER NEW INVESTORS WEREN'T IDENTIFIED ATX PLANS TO START LOW FARE SERVICE IN LATE SPRING TO MAJOR EAST COAST CITIES STANDARD AND POOR'S CORPORATION SAID IT RAISED THE PREFERRED STOCK RATING ON THIS COMPANY'S COLUMBUS SOUTHERN POWER COMPANY UNIT TO TRIPLE B. FROM TRIPLE B. MINUS ABOUT ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF PREFERRED STOCK IS AFFECTED S. AND P. CITED A RECENT RATE INCREASE BY THE PUBLIC UTILITIES COMMISSION OF OHIO AND ADDED THAT QUOTE THE UPGRADE ALSO REFLECTS A STRUCTURALLY LOW RISK UTILITY QUOTE CUMMINS ENGINE COMPANY COLUMBUS INDIANA MOODY'S INVESTORS SERVICE INCORPORATED RAISED ITS RATING ON TWO HUNDRED FIFTY THREE MILLION DOLLARS OF DEBT OF THIS MAKER OF DIESEL ENGINES IT CITED THE FAVORABLE INTERMEDIATE TERM OUTLOOK FOR SALES AND OPERATING PERFORMANCE AS A RESULT OF A STRONGER AND MORE DIVERSIFIED CUSTOMER BASE THE EXPANSION OF THE COMPANY'S INTERNATIONAL PRESENCE AND BETTER COST CONTROLS THE RATINGS CONCERN ADDED THAT A RECENT ONE HUNDRED TWENTY SIX MILLION DOLLAR EQUITY OFFERING AND THE PLANNED CONVERSION OF ONE HUNDRED TWELVE MILLION DOLLARS OF PREFERENCE STOCK INTO COMMON STOCK WILL RESULT IN A SIGNIFICANT IMPROVEMENT IN CUMMINS'S LEVERAGE AND DEBT PROTECTION MEASUREMENTS AMONG THE IMPROVED RATINGS THE COMPANY'S SENIOR DEBT WAS RAISED TO B. A. A. TWO FROM B. A. ONE AND CONVERTIBLE PREFERENCE STOCK TO B. A. A. THREE FROM B. A. THREE RIGGS NATIONAL CORPORATION WASHINGTON D. C. MOODY'S INVESTORS SERVICE INCORPORATED RAISED ITS RATING ON THE SUBORDINATED DEBT OF THIS BANKING COMPANY TO B. THREE FROM C. A. REFLECTING AN IMPROVED CAPITAL POSITION ABOUT TWO HUNDRED THIRTEEN MILLION DOLLARS OF DEBT SECURITIES IS AFFECTED MOODY'S ALSO NOTED THAT THE COMPANY HAS BEEN REDUCING NONPERFORMING ASSETS ALTHOUGH THE LEVEL OF PROBLEM ASSETS REMAINS HIGH TOKYO SHARES CLIMBED ONE POINT SIX PERCENT TUESDAY ON BUYING BY ARBITRAGERS AND OVERSEAS INVESTORS FOLLOWING THE PREVIOUS DAY'S SLIDE THE STEEPEST IN TWO AND ONE HALF YEARS LONDON PRICES FELL SHARPLY IN A LATE SELL OFF SPARKED BY WALL STREET'S LOWER OPENING FRANKFURT STOCKS CONTINUED TO REBOUND JUMPING TWO POINT TWO PERCENT WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED THIRTEEN POINT FOUR ONE UP ZERO POINT FOUR TWO REFLECTING HIGHER ASIA SLASH PACIFIC AND EUROPEAN MARKETS AND LOWER AMERICAN MARKETS CONSUMER ELECTRONICS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED TWENTY THREE POINT SIX THREE UP THREE POINT FOUR OH OR TWO POINT EIGHT PERCENT WITH KENWOOD OF JAPAN POSTING A SIX POINT THREE PERCENT GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT ONE HUNDRED EIGHTY SEVEN POINT FIVE OH DOWN TWENTY EIGHT POINT NINE SEVEN OR THIRTEEN PERCENT WITH UNITED PLANTATIONS OF MALAYSIA SLIDING NINETEEN PERCENT IN LOCAL CURRENCY BUT SOME TRADERS TERMED THE REBOUND PALTRY GIVEN MONDAY'S FOUR POINT NINE PERCENT NOSE DIVE BY THE NIKKEI WHILE FOREIGN INVESTORS BOUGHT POSITIONS MOST OTHERS SOLD JAPANESE POLITICS REMAINED THE MARKET'S FOCUS THE OPPOSITION LIBERAL DEMOCRATIC PARTY AGREED TO JOIN A PARLIAMENTARY CONFERENCE COMMITTEE TO TRY TO WORK OUT A POLITICAL REFORM COMPROMISE BEFORE THE DIET ADJOURNS SATURDAY REJECTION OF THAT REFORM LEGISLATION HAD CAUSED MONDAY'S TUMBLE BUYING AT LOWER LEVELS BY OVERSEAS INVESTORS WAS SPURRED BY A NOMURA RESEARCH INSTITUTE STRATEGIST'S REPORT THAT THE MARKET'S WEAKNESS FROM THE POLITICAL REFORM LEGISLATION'S FAILURE PROVIDED A BUYING OPPORTUNITY ARBITRAGERS BOUGHT HEAVILY SELLING JAPANESE GOVERNMENT BOND FUTURES TO BUY NIKKEI FUTURES IN THE LAST HALF HOUR OF TRADING WHEN THE NIKKEI SCORED ABOUT HALF ITS GAINS IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX LOST THIRTY SEVEN POINT FOUR POINTS OR ONE POINT ONE PERCENT TO THREE THOUSAND FOUR HUNDRED FORTY FOUR POINT OH ALSO THE INTRADAY LOW MARKING THE BIGGEST ONE DAY DROP IN TWO WEEKS THE F. T. THIRTY STOCK INDEX SLUMPED TWENTY FIVE POINT TWO POINTS TO TWO THOUSAND SIX HUNDRED FORTY SIX POINT TWO VOLUME WAS NINE HUNDRED EIGHTY FOUR POINT NINE MILLION SHARES COMPARED WITH EIGHT HUNDRED POINT TWO MILLION SHARES A DAY EARLIER SPORADIC EARLY SELLING SNOWBALLED IN THE AFTERNOON TRIGGERED BY NEW YORK STOCKS' EARLY DECLINES THE LONDON MARKET ALSO WAS AFFECTED BY NEWS REPORTS ABOUT POTENTIAL EFFECTS OF COMING BRITISH TAX INCREASES FOLLOWING THE MARKET'S RECENT SHARP GAINS MANY DEALERS WERE SHORT OF STOCK AND WANTED AN OPPORTUNITY TO TAKE PRICES LOWER SO THEY COULD PICK UP SOME SHARES SUCH DEALERS HAVE BEEN CAUGHT BY SURPRISE BY THE EXTENT OF THE GAINS AND BEEN SCRAMBLING FOR STOCK TO COVER SHORT OR OVERSOLD POSITIONS PRICES FELL ACROSS THE BOARD SECTORS HIT HARDEST WERE BANKING OIL RETAILING AND PHARMACEUTICALS IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX RALLIED FORTY SIX POINT SEVEN SEVEN POINTS TO TWO THOUSAND ONE HUNDRED TWENTY SIX POINT SEVEN EIGHT THE REBOUND BEGAN MONDAY AFTER THE MAIN INDEX HAD RETREATED EIGHT POINT FIVE PERCENT SINCE REACHING A RECORD HIGH OF TWO THOUSAND TWO HUNDRED SIXTY SEVEN POINT NINE EIGHT ON THE FIRST DAY OF TRADING THIS YEAR INDUSTRIAL STOCKS DID WELL ALONG WITH BANKS AND THE STRONG STABLE U. S. DOLLAR IN FOREIGN CURRENCY DEALINGS HELPED BOOST DOLLAR SENSITIVE EXPORT SHARES SUCH AS CHEMICAL COMPANIES IN PARIS STOCKS FINISHED SLIGHTLY HIGHER AFTER GAINS WERE ERODED IN RESPONSE TO EARLY WEAKNESS ON WALL STREET PROFIT TAKING ALSO WAS A FACTOR FOLLOWING THE MARKET'S RECENT ADVANCES KILLING EXPECTATIONS FOR HIGHER PRICES TYPICAL ON THE FIRST DAY OF A NEW TRADING ACCOUNT CORPORATE EARNINGS INDICATIONS WERE SAID TO BE MAKING SOME INVESTORS CAUTIOUS IN AMSTERDAM PRICES ENDED MIXED BUT WITH A WEAK TONE ON A WAVE OF LATE SELLING PARTLY BECAUSE OF SOFTER MARKETS ABROAD DECLINES WERE LED BY THE FINANCIAL SECTOR AND PROFIT TAKING KNOCKED DOWN MANY BLUE CHIPS IN MILAN STOCKS ROSE ON NEWS OF A PRELIMINARY ACCORD AMONG SOME CENTRIST GROUPS THAT BROUGHT SOME UNITY TO ITALY'S POLITICAL SITUATION WHICH HAS BEEN BADLY FRAGMENTED SINCE A BIG TURN TOWARD FRINGE PARTIES IN LAST MONTH'S MUNICIPAL ELECTIONS THE ITALIAN MARKET ALSO WAS SUPPORTED BY DATA SHOWING THE BALANCE OF PAYMENTS SWUNG TO A SURPLUS IN NINETEEN NINETY THREE FROM A DEFICIT IN NINETEEN NINETY TWO IN MADRID EQUITIES ADVANCED AFTER SPAIN'S CENTRAL BANK LOWERED ITS BENCHMARK LENDING RATE TO EIGHT POINT SEVEN FIVE PERCENT FROM NINE PERCENT IN THE REGULAR SEVEN TO THIRTEEN DAY REPURCHASE TENDER THIS SURPRISED THE MARKET WHICH HAD EXPECTED THE BANK TO WAIT FOR THE GERMAN CENTRAL BANK TO MOVE ON RATES FIRST IN STOCKHOLM PRICES DROPPED SHARPLY IN MODERATE TRADING MAINLY BECAUSE OF BIG LOSSES IN THE TELECOMMUNICATIONS SECTOR AS WELL AS RETREATS BY DRUG ISSUES STEMMING FROM POOR PERFORMANCES BY PHARMACEUTICALS IN OTHER MAJOR BOURSES IN ZURICH SHARES CLIMBED LIFTED BY BARGAIN HUNTING AMONG BANK CHEMICAL AND OTHER BLUE CHIP ISSUES IN MEXICO CITY EQUITIES GAVE UP ONE POINT THREE PERCENT PULLED DOWN FROM RECORD HIGHS BY PROFITTAKING IN SYDNEY STOCKS EASED WITH LOSSES REINED IN BY LOWER THAN EXPECTED AUSTRALIAN INFLATION FIGURES AND SOME STABILITY IN THE TOKYO STOCK MARKET IN HONG KONG PRICES FINISHED BROADLY LOWER SPARKED BY WEAKNESS A DAY EARLIER IN STOCKS THAT ALSO TRADE IN OVERSEAS MARKETS SUCH AS LONDON HONG KONG ACTIVITY WAS LED MAINLY BY PRICES OF JANUARY STOCK INDEX FUTURES CONTRACTS WHICH HAVE BEEN ACTIVE AHEAD OF THEIR EXPIRATION FRIDAY FOREIGN INVESTORS ALSO DUMPED STOCKS LATE IN THE SESSION IN SYMPATHY WITH SOME WEAKER MARKETS IN THE REGION IN SINGAPORE SHARES OPENED LOWER AND HEADED STEADILY DOWN TO FINISH WITH A TWO POINT SEVEN PERCENT LOSS WEAK SENTIMENT WAS SAPPED FURTHER WHEN BUYING FROM THE PREVIOUS SESSION FAILED TO FOLLOW THROUGH AND INSTITUTIONAL INVESTORS SOLD HEAVILY AND IN KUALA LUMPUR EQUITIES PLUNGED ACROSS THE BOARD ENDING FIVE PERCENT LOWER AFTER PANICKY SELLING BY INVESTORS WHO FEARED A FURTHER SLIDE IN PRICES BOTH THE SINGAPORE AND MALAYSIAN BOURSES CORRECTED HEAVILY EARLY THIS MONTH AND HAVE SINCE CONSOLIDATED BROADLY IN TAIPEI STOCKS ALSO OPENED WITH LOSSES AND CONTINUED DECLINING THROUGHOUT THE SESSION ENDING WITH A TWO POINT ONE PERCENT DROP TRADING WAS SLUGGISH AS MANY INVESTORS STAYED ON THE SIDELINES AWAITING A LOOSENING OF THE MONEY SUPPLY BY THE TAIWAN GOVERNMENT WHICH HAS A CONSERVATIVE MONETARY POLICY IN MANILA SHARES FELL IN LIGHT VOLUME HURT BY PROFIT TAKING BY PHILIPPINE AND FOREIGN INSTITUTIONS AND IN BANGKOK PROFIT TAKING PUSHED STOCKS DOWN ABOUT ONE PERCENT IN ACTIVE CHOPPY TURNOVER BUT IN SEOUL PRICES ROSE IN ACTIVE DEALINGS SUPPORTED BY RALLIES IN THE BANKING SECTOR 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END WOMEN'S APPAREL MAKER LESLIE FAY COMPANIES OPERATING UNDER PROTECTION FROM CREDITORS UNDER CHAPTER ELEVEN OF THE U. S. BANKRUPTCY CODE REPORTED A LOSS OF EIGHT POINT FIVE MILLION DOLLARS OR FORTY FIVE CENTS A SHARE FOR THE THIRD QUARTER ENDED OCTOBER SECOND NEW YORK BASED LESLIE FAY WHICH RESTATED ITS FULL YEAR NINETEEN NINETY TWO RESULTS HASN'T RESTATED ITS NINETEEN NINETY TWO QUARTERLY RESULTS AND DIDN'T PROVIDE A COMPARISON WITH THE YEAR EARLIER THIRD QUARTER THE COMPANY SAID THE QUARTER INCLUDES REORGANIZATION CHARGES OF SEVEN POINT THREE MILLION DOLLARS ACCRUED INTEREST EXPENSE OF FIVE POINT FIVE MILLION DOLLARS AND A TAX BENEFIT OF TWO POINT FOUR MILLION DOLLARS PRETAX OPERATING PROFIT WAS ONE POINT EIGHT MILLION DOLLARS SALES FOR THE QUARTER TOTALED TWO HUNDRED POINT SEVEN MILLION DOLLARS FOR THE NINE MONTHS ENDED OCTOBER SECOND LESLIE FAY POSTED A LOSS OF FORTY SIX POINT THREE MILLION DOLLARS OR TWO DOLLARS AND FORTY SIX CENTS A SHARE ON SALES OF FIVE HUNDRED THIRTY EIGHT POINT FIVE MILLION DOLLARS KERR GROUP INCORPORATED OF LOS ANGELES EXPECTS ITS NET INCOME TO BE BOOSTED BY ABOUT FIFTY CENTS A SHARE PER YEAR THROUGH NINETEEN NINETY SIX BECAUSE OF COST REDUCTIONS FROM THE COMPANY'S RELOCATION OF ITS HOME CANNING LID MANUFACTURING OPERATIONS FROM CHICAGO TO A NEW FACILITY IN JACKSON TENNESSEE IN THURSDAY'S SMALL STOCK FOCUS COLUMN IT WAS INCORRECTLY REPORTED THAT THE FIFTY CENT ASHARE BOOST WOULD BE ON A PRETAX BASIS KETCHUM ADVERTISING'S SAN FRANCISCO OFFICE RESIGNED IN NOVEMBER FROM D. H. L. CORPORATION'S ADVERTISING ACCOUNT THURSDAY'S ADVERTISING COLUMN INCORRECTLY STATED THAT KETCHUM HAD BEEN FIRED FROM THE BUSINESS THE ALLIANCE AIRPORT IN FORT WORTH TEXAS IS UNDER THE DIRECTION OF THE FORT WORTH CITY COUNCIL A HEADLINE IN THE DECEMBER SEVENTEENTH EDITIONS INCORRECTLY STATED THAT THE AIRPORT WAS OWNED BY ROSS PEROT THE ARTICLE WAS ABOUT FEDERAL EXPRESS CORPORATION'S SELECTION OF ALLIANCE AIRPORT AS ITS SOUTHWESTERN HUB A MOVE THAT COULD BOOST THE FORTUNES OF A PROJECT LINKED TO THE FAMILY OF MR. PEROT A REPORT BY THE U. S. PAPER INDUSTRY SAID THAT THE WORLD TRADING AGREEMENT NEGOTIATED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE GENERALLY MEETS THE INDUSTRY'S OBJECTIVES BUT THAT THE INDUSTRY STILL HAS SOME RESERVATIONS AN ARTICLE MONDAY INCORRECTLY REPORTED THAT THE PAPER INDUSTRY OPPOSES THE ACCORD MOODY'S INVESTORS SERVICE INCORPORATED PLACED THE CREDIT RATINGS OF CONSOLIDATED EDISON COMPANY OF NEW YORK UNDER REVIEW FOR POSSIBLE DOWNGRADES IN PART OVER CONCERNS ABOUT QUOTE THE COMPANY'S ABILITY TO IMPROVE DEBT PROTECTION MEASURES QUOTE IN FRIDAY'S CREDIT RATINGS COLUMN IT WAS INCORRECTLY STATED THAT MOODY'S WAS CONCERNED ABOUT THE COMPANY'S ABILITY TO MAKE ITS INTEREST PAYMENTS ON DEBT A KANSAS SECURITIES DEALER'S ALLEGATIONS THAT BIG OUT OF STATE SECURITIES FIRMS HIDE POLITICAL GIFTS BY ROUTING THEM THROUGH LAWYERS APPARENTLY HAS ATTRACTED THE ATTENTION OF THE SECURITIES AND EXCHANGE COMMISSION THE ALLEGATIONS WERE DESCRIBED IN A COMMENT LETTER SUBMITTED TO THE MUNICIPAL SECURITIES RULEMAKING BOARD IN CONNECTION WITH ITS INITIATIVE TO END QUOTE PAY TO PLAY QUOTE CONTRIBUTIONS THAT MUNI DEALERS MAKE TO STATE AND LOCAL POLITICIANS TO WIN BOND BUSINESS THE S. E. C. WHICH MUST APPROVE THE RULE BEFORE IT TAKES EFFECT IS EXPECTED TO PUBLISH THE PROPOSED RULE FOR COMMENT THIS WEEK RAY REED JUNIOR PRESIDENT OF FIRST SECURITIES COMPANY OF KANSAS TOLD THE M. S. R. B. IN HIS LETTER IN KANSAS AND WE ARE A RATHER RURAL STATE THE LARGE EASTERN DEALERS CONTINUALLY EMPLOY COUNSEL TO MAKE THEIR CONTRIBUTIONS AND ENHANCE THEIR LEGAL FEES BY THE AMOUNT OF THE CONTRIBUTION MR. REED WHO SAID THIS PRACTICE CAN'T BE STOPPED SAID THAT IF I WANT TO MAKE ANY POLITICAL CONTRIBUTIONS I DO IT THROUGH AN ATTORNEY AND I DEFY ANYONE TO ASK ATTORNEYS TO CONSOLIDATE THEIR CLIENT INFORMATION FOR YOUR INSPECTION HE COULDN'T BE REACHED TO COMMENT YESTERDAY THE TYPE OF SITUATION DESCRIBED BY MR. REED WAS APPARENTLY ADDRESSED MONDAY BY S. E. C. CHAIRMAN ARTHUR LEVITT IN A SPEECH IN NEW YORK MR. LEVITT INDICATED THAT HIS AGENCY IS LIKELY TO LOOK INTO ALLEGATIONS OF SHAM TRANSACTIONS AND REIMBURSEMENTS TO CONCEAL THE EXTENT OF POLITICAL CONTRIBUTIONS IN THE MUNICIPAL BOND MARKET MR. LEVITT WHO SAID HE FULLY SUPPORTS THE DIRECTION THE M. S. R. B. HAS TAKEN STATED THAT ELIMINATING CONFLICTS INHERENT IN DIRECT CHECKS TO CAMPAIGN WAR CHESTS' MAY BE AN EMPTY GESTURE IF THOSE SAME CHECKS ARE HANDED OVER TO WELL HEELED CONSULTANTS WHO TRADE IN GOVERNMENT INFLUENCE THE S. E. C. CHIEF ADDED I CAN ASSURE YOU THAT WE WILL NOT IGNORE THE USE OF ADVISERS AND CONSULTANTS AS WE PURSUE THIS ISSUE IN THE SPEECH WHERE HE VOWED QUOTE A STRONG ENFORCEMENT PRESENCE QUOTE TO INCREASE INVESTOR CONFIDENCE IN THE INTEGRITY OF THE MUNI MARKET MR. LEVITT ALSO NOTED QUOTE ALLEGATIONS ABOUT OFFERINGS THAT LACK ECONOMIC MERIT OR THAT MISREPRESENT THE TAX STATUS OF THE BONDS QUOTE CHIEFLY AT ISSUE HERE ARE MUNICIPAL SECURITIES THAT WERE SOLD TO REAP FAT FEES AND ARBITRAGE PROFITS BY INVESTING BOND PROCEEDS IN HIGHER YIELDING OBLIGATIONS RATHER THAN TO FINANCE THE PROJECTS FOR WHICH THE BOND OFFERINGS OSTENSIBLY WERE INTENDED SECURITIES DEEMED BY THE INTERNAL REVENUE SERVICE TO BE ARBITRAGE BONDS BECOME TAXABLE EVEN THOUGH THEY WERE SOLD TO INVESTORS AS TAX EXEMPT SECURITIES THE I. R. S. HAS STEPPED UP ITS OWN MUNI ENFORCEMENT EFFORTS AND HAS BEGUN TO COORDINATE THOSE EFFORTS WITH THE S. E. C. THE POTENTIAL INTERPLAY BETWEEN TAX AND SECURITIES LAWS IN THE MUNI ARENA HAS LONG BEEN RECOGNIZED BUT TO DATE HAS GENERATED LITTLE IN THE WAY OF COORDINATED ENFORCEMENT ACTION INTERNATIONAL BUSINESS MACHINES CORPORATION REPORTED ITS FIRST QUARTERLY PROFIT IN MORE THAN A YEAR BUT IT MANAGED TO DISAPPOINT WALL STREET WITH LOWER THAN ANTICIPATED EARNINGS AND AN UNEXPECTED DECLINE IN SALES I. B. M. REPORTED FOURTH QUARTER NET INCOME OF THREE HUNDRED EIGHTY TWO MILLION DOLLARS OR SIXTY TWO CENTS A SHARE REBOUNDING FROM A YEAR EARLIER NET LOSS OF FIVE POINT FOUR SIX BILLION DOLLARS ON HUGE RESTRUCTURING CHARGES THE COMPANY WHICH IS BASED IN ARMONK N. Y. THUS POSTED ITS FIRST QUARTERLY NET INCOME SINCE THE SECOND QUARTER OF NINETEEN NINETY TWO SIGNALING THAT TWO YEARS OF BIG CHARGES AND RESTRUCTURING MAY FINALLY BE TAKING HOLD JEROME B. YORK CHIEF FINANCIAL OFFICER SAID IN AN INTERVIEW THAT HE EXPECTS AT LEAST A BREAK EVEN FIRST QUARTER FOR THIS YEAR AND THAT PROFIT MARGINS AND REVENUE AFTER STEADY DETERIORATION WILL REMAIN LEVEL OR INCREASE SLIGHTLY BUT I. B. M.'S EARNINGS OF SIXTY TWO CENTS A SHARE FELL SHY OF WALL STREET ANALYSTS' HOPES FOR SEVENTY FIVE CENTS A SHARE THE SLIGHT DECLINE IN REVENUE TO NINETEEN POINT FOUR OH BILLION DOLLARS FROM NINETEEN POINT FIVE SIX BILLION DOLLARS A YEAR EARLIER SENT I. B. M. SHARES TUMBLING INITIALLY DOWN MORE THAN FIVE PERCENT IN THE FIRST HALF HOUR AFTER THE EARNINGS REPORT THE STOCK LATER RECOVERED CLOSING AT FIFTY EIGHT DOLLARS AND TWENTY FIVE CENTS DOWN THIRTY SEVEN POINT FIVE CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE RESULTS HAD A SOBERING EFFECT POUNDING HOME THE MESSAGE THAT BIG BLUE'S LARGER CHALLENGE OF INCREASING REVENUE AND RESTORING PROFIT MARGINS STILL LIES AHEAD QUOTE OVERALL IT'S A GOOD QUARTER QUOTE SAID ROBERT DJURDJEVIC OF ANNEX RESEARCH IN PHOENIX BUT I WOULDN'T RECOMMEND PEOPLE AT THIS STAGE SUDDENLY BECOME EUPHORIC ABOUT I. B. M. INDEED I. B. M.'S MR. YORK WARNED ANALYSTS THAT MUCH WORK REMAINS TO BE DONE THE BATTLESHIP IS STARTING TO TURN AND SAIL IN THE RIGHT DIRECTION BUT WE REALIZE WE HAVE ONE HELL OF A LOT OF WORK TO DO MR. YORK TOLD ANALYSTS IN A PRIVATE SESSION THIS AIN'T A CANDY STORE ON MAIN STREET AND IT WON'T BE TURNED AROUND IN ONE OR TWO QUARTERS MR. YORK SAID HE IS CONSERVATIVELY PLANNING ON FLAT REVENUE FOR THIS YEAR AND IS SETTING BUDGETS ACCORDINGLY SALES OF PERSONAL COMPUTERS AND WORKSTATIONS SHOULD MAKE UP FOR MAINFRAME REVENUE DECLINING BY HALF THIS YEAR MR. YORK SAID IN ADDITION I. B. M. WILL LOSE ANOTHER TWO BILLION DOLLARS IN REVENUE AS A RESULT OF THE PENDING SALE OF ITS FEDERAL SYSTEMS DIVISION WHICH PUTS TOGETHER COMPUTER SYSTEMS FOR THE FEDERAL GOVERNMENT ON THE EXPENSE SIDE MR. YORK SAID HE AND HIS TEAM CUT TWO POINT EIGHT BILLION DOLLARS OUT OF I. B. M.'S EXPENSES IN NINETEEN NINETY THREE AND PLAN ON TAKING OUT ANOTHER THREE BILLION DOLLARS THIS YEAR THAT HE ADDED SHOULD BE ENOUGH TO OFFSET CONTINUED PROFIT DECLINE FROM THE LOSS OF MAINFRAME SALES IN A PLANNING ERROR THAT MR. YORK SAID WAS COMPLETELY UNDERSTANDABLE I. B. M. ACTUALLY HAS BACK ORDERS FOR MAINFRAMES DUE TO AN UNEXPECTED SUDDEN DEMAND LATE LAST YEAR THAT MEANS FOURTH QUARTER REVENUE ACTUALLY COULD HAVE BEEN HIGHER THAN IT WAS HAD I. B. M. BEEN ABLE TO FILL ALL MAINFRAME ORDERS REVENUE OVERALL IN NINETEEN NINETY THREE WAS HURT BY DETERIORATING PRICES ON BOTH HIGH END AND LOW END PRODUCTS AS WELL AS BY SLOW SALES IN EUROPE AND JAPAN INCREASES IN UNIT VOLUMES ALMOST MADE UP THE DIFFERENCE BUT CURRENCY TRANSLATIONS IN THE END RESULTED IN A DECLINE MR. YORK SAID OVERALL HARDWARE SALES IN THE FOURTH QUARTER FELL FIVE POINT FOUR PERCENT FROM A YEAR EARLIER DESPITE STRONG SALES GROWTH OF THIRTY FIVE PERCENT IN P. C.S AND A FOUR PERCENT RISE IN SALES OF R. S. SLASH SIX THOUSAND WORKSTATIONS THE OVERALL DECLINE WAS CAUSED BY SLIDES IN MAINFRAME SALES WHICH DROPPED THIRTY PERCENT AND IN SALES OF THE MIDRANGE AS SLASH FOUR HUNDRED LINE WHICH DECLINED TEN PERCENT THE GREATEST REVENUE INCREASE CAME FROM SERVICE SALES WHICH ROSE THIRTY TWO PERCENT OVER THE YEAR EARLIER PERIOD TO THREE POINT TWO BILLION DOLLARS BUT SOFTWARE REVENUE DECLINED THREE POINT EIGHT PERCENT BASED ON FOURTH QUARTER RESULTS I. B. M. HASN'T TURNED AROUND THE COST SIDE OF THE EQUATION EITHER THE COMPANY'S GROSS PROFIT EQUAL TO REVENUE LESS THE COST OF GOODS SOLD DECLINED THREE POINT FIVE PERCENT IN THE QUARTER AND ITS GROSS PROFIT MARGIN DROPPED MORE THAN A FULL PERCENTAGE POINT TO THIRTY EIGHT POINT TWO PERCENT COMPARED WITH A YEAR EARLIER THAT IS DOWN SHARPLY FROM A MARGIN OF FIFTY FIVE PERCENT IN NINETEEN NINETY BUT MR. YORK SAID HE LOOKS FOR STABILITY THIS YEAR THE CHIEF FINANCIAL OFFICER ALSO SAID THAT LOUIS V. GERSTNER JUNIOR I. B. M.'S CHAIRMAN WILL PROVIDE WALL STREET WITH SOME INSIGHT INTO THE COMPANY'S STRATEGIC DIRECTION IN MARCH WHEN HE MEETS WITH ANALYSTS FOR THE FIRST TIME AS HEAD OF I. B. M. FOR THE FULL YEAR NINETEEN NINETY THREE I. B. M. EARNED ONE HUNDRED FORTY EIGHT MILLION DOLLARS FROM OPERATIONS BEFORE TAXES AND RESTRUCTURING CHARGES AFTER THE EIGHT POINT NINE BILLION DOLLAR CHARGE TAKEN IN THE SECOND QUARTER I. B. M. HAD A FULL YEAR NET LOSS OF EIGHT POINT ONE OH BILLION DOLLARS COMPARED WITH A NET LOSS AFTER A CHANGE IN ACCOUNTING PRINCIPLES OF FOUR POINT NINE SIX BILLION DOLLARS IN NINETEEN NINETY TWO WORLD WIDE REVENUE FOR NINETEEN NINETY THREE DECLINED TWO POINT EIGHT PERCENT TO SIXTY TWO POINT SEVEN BILLION DOLLARS FROM SIXTY FOUR POINT FIVE BILLION DOLLARS IN NINETEEN NINETY TWO I. B. M.'S WORLD WIDE WORK FORCE NOW NUMBERS TWO HUNDRED FIFTY SIX THOUSAND A DECLINE OF FORTY FIVE THOUSAND FROM NINETEEN NINETY TWO AN ADDITIONAL TEN THOUSAND EMPLOYEES WILL LEAVE I. B. M. AFTER THE SALE OF THE FEDERAL SYSTEMS DIVISION WHICH IS EXPECTED TO BE COMPLETED IN THE FIRST QUARTER GENEVA STEEL SAID IN VINEYARD UTAH THAT IT HAS AMENDED ITS PREVIOUSLY FILED REGISTRATION STATEMENT COVERING A PUBLIC OFFERING OF SENIOR NOTES DUE IN TWO THOUSAND FOUR THE INTEGRATED STEEL MAKER SAID THE AMENDMENT INCREASES THE SIZE OF THE OFFERING TO ONE HUNDRED NINETY MILLION DOLLARS FROM ONE HUNDRED TWENTY FIVE MILLION DOLLARS GENEVA EXPECTS TO USE PROCEEDS TO REFINANCE THE COMPANY'S PRIVATELY PLACED SENIOR AND SUBORDINATED TERM DEBT AND FOR CAPITAL EXPENDITURES AND OTHER GENERAL CORPORATE PURPOSES SMALL BUSINESS IS SENDING AN URGENT PLEA TO THE NATION'S LAWMAKERS RESTRAIN YOURSELF AS CONGRESS GETS BACK TO BUSINESS AFTER PRESIDENT CLINTON'S STATE OF THE UNION ADDRESS LAST NIGHT SMALL BUSINESS HAS SET ITS SIGHTS ON THREE MAJOR LEGISLATIVE GOALS FOR NINETEEN NINETY FOUR IN EACH CASE THE IDEA IS TO REIN IN THE GOVERNMENT BY SOFTENING PROPOSED OR EXISTING LAWS THE HEAVIEST SMALL BUSINESS FIRE WILL BE AIMED AT PRESIDENT CLINTON'S HEALTH CARE OVERHAUL PLAN MOST SMALL BUSINESS GROUPS SEEK TO WATER DOWN THE PROPOSAL BY ELIMINATING MANDATORY EMPLOYER CONTRIBUTIONS CONGRESSIONAL HEARINGS ON THE ISSUE OPEN NEXT WEEK SMALL BUSINESSES ARE ALSO PUSHING FOR RELIEF FROM ENVIRONMENTAL REGULATIONS NOTABLY THE NINETEEN EIGHTY SUPERFUND CLEANUP LAW AND PROPOSED NEW WATER POLLUTION CONTROLS FINALLY THEY ARE BATTLING AGAINST A MOVE IN CONGRESS TO CRIMINALIZE CERTAIN WORKPLACE SAFETY VIOLATIONS SMALL BUSINESS ADVOCATES DON'T EXPECT THE GOING TO BE EASY ON ANY OF THE THREE FRONTS FOR STARTERS MANY ADVOCATES EXPECT PRESIDENT CLINTON TO BE MORE FOCUSED IN HIS SECOND YEAR IN OFFICE AND MORE TENACIOUS IN PROMOTING HIS PROGRAMS QUOTE WHEN THE PRESIDENT CAME IN HE HAD TO DEAL WITH A LOT OF LEGISLATION LEFT OVER FROM THE BUSH ADMINISTRATION QUOTE SAYS TOM CATOR A LOBBYIST FOR SEVERAL SMALL BUSINESS GROUPS THIS TIME WE'LL SEE A CLINTON AGENDA TOPPING THAT AGENDA IS MR. CLINTON'S PROPOSAL FOR UNIVERSAL HEALTH CARE WHICH WOULD REQUIRE ALL EMPLOYERS TO HELP PAY FOR THEIR WORKERS' MEDICAL COVERAGE MANY SMALL BUSINESS GROUPS LED BY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS STRONGLY OPPOSE AN EMPLOYER MANDATE HEARINGS THAT WILL OPEN IN THE HOUSE WAYS AND MEANS COMMITTEE NEXT WEEK AND IN A SUBCOMMITTEE OF THE HOUSE ENERGY AND COMMERCE COMMITTEE IN LATE FEBRUARY WILL CONSIDER NOT ONLY MR. CLINTON'S BILL BUT ALSO PROPOSALS BY OTHERS BOTH DEMOCRATS AND REPUBLICANS WE THINK THOSE TWO COMMITTEES WILL COME UP WITH VERY DIFFERENT PRODUCTS SAYS KIM MCKERNAN A LOBBYIST FOR THE N. F. I. B. THE LARGEST GROUP REPRESENTING SMALL BUSINESS THERE ARE ALSO DIFFERENT APPROACHES TO REFORM BETWEEN THE SENATE FINANCE AND LABOR COMMITTEES SHE ADDS SO MANY BELIEVE THEY'LL JUST END UP WITH INCREMENTAL CHANGES LIKE REFORMING THE INSURANCE MARKET AND MEDICAL MALPRACTICE REFORM THE FEDERATION IS PUSHING FOR ALTERNATIVE PROPOSALS BY DEMOCRATIC REPRESENTATIVE JIM COOPER OF TENNESSEE AND BY G. O. P. SENATOR JOHN CHAFEE OF RHODE ISLAND THAT DON'T INCLUDE AN EMPLOYER MANDATE SOME SMALL BUSINESSES HOWEVER BACK THE CLINTON PLAN WHICH WOULD SUBSIDIZE HEALTH COVERAGE COSTS OF SMALL LOW WAGE EMPLOYERS SENATE SMALL BUSINESS COMMITTEE CHAIRMAN DALE BUMPERS EXPECTS THE PRESIDENT'S PLAN TO UNDERGO MAJOR CHANGES AND ENTREPRENEURS SHOULDN'T GET TOO FIXATED ON WHAT IS OUT THERE NOW SAYS AN AIDE TO THE ARKANSAS DEMOCRAT SENATOR BUMPERS'S PANEL WILL HOLD HEARINGS ON THE PRESIDENT'S BILL NEXT MONTH ON ENVIRONMENTAL ISSUES SMALL BUSINESS OWNERS ARE PUSHING TO ELIMINATE THEIR OPEN ENDED LIABILITY UNDER THE SUPERFUND LAW FOR FINANCING THE CLEAN UP OF HAZARDOUS WASTE SITES USED BEFORE NINETEEN EIGHTY AND TO SPEED RESOLUTION OF THEIR CLEAN UP RESPONSIBILITIES SENATOR FRANK LAUTENBERG A NEW JERSEY DEMOCRAT HAS SCHEDULED HEARINGS ON SUPERFUND REFORM FOR FEBRUARY JOHN SATAGAJ PRESIDENT OF THE SMALL BUSINESS LEGISLATIVE COUNSEL THAT REPRESENTS ONE HUNDRED TRADE GROUPS SAYS THE WHITE HOUSE HAS SENT OUT SIGNALS THAT IT WILL CONSIDER ENDING RETROACTIVE LIABILITY FOR THE VERY SMALLEST BUSINESSES OTHER SMALL BUSINESS GROUPS SAY CONGRESS APPEARS SIMILARLY INCLINED QUOTE THE HILL UNDERSTANDS THAT SMALL BUSINESS IS A BIG FACTOR A BIG PART OF THE PROBLEM THAT MUST BE SOLVED QUOTE SAYS HARRIET JAMES THE N. F. I. B.'S ENVIRONMENTAL ISSUES LOBBYIST MEANWHILE A BILL TO GIVE THE ENVIRONMENTAL PROTECTION AGENCY THE RIGHT TO TOUGHEN WATER POLLUTION CONTROL STANDARDS FOR BUSINESSES IS LIKELY TO DRAW FIRE FROM SOME SMALL BUSINESS GROUPS SUCH AS THE NATIONAL ASSOCIATION OF METAL FINISHERS SMALL COMPANIES OBJECT TO THE TOUGHER RULES PROPOSED IN THE BILL BECAUSE THEY WOULD DICTATE THE KIND OF MATERIALS AND MANUFACTURING PROCESSES THAT COMPANIES COULD USE SAYS WILLIAM SONNTAG THE METAL FINISHERS' LOBBYIST THE GROUP ARGUES FOR RULES THAT GIVE BUSINESSES SOME FLEXIBILITY IN MEETING WATER QUALITY STANDARDS ON THE LABOR FRONT SMALL BUSINESS IS PREPARING TO FIGHT THE PROPOSED OCCUPATIONAL SAFETY AND HEALTH REFORM ACT WHICH HAS A CHANCE OF PASSING THIS YEAR THE MEASURE WOULD ESTABLISH CRIMINAL PENALTIES FOR VIOLATING SOME LABOR DEPARTMENT SAFETY RULES AND WOULD REQUIRE COMPANIES TO ESTABLISH WORKER SAFETY COMMITTEES THIS COULD FORCE SMALL BUSINESSES TO HIRE CRIMINAL DEFENSE ATTORNEYS IT'S JUST MORE PUNISHMENT INSTEAD OF HELP FOR SMALL BUSINESS IN CREATING A SAFER WORKPLACE SAYS THE N. F. I. B.'S MS. MCKERNAN SMALL BUSINESS GROUPS ALSO PLAN TO OPPOSE AN ATTEMPT TO GET A SENATE VOTE ON STRIKER REPLACEMENT LEGISLATION WHICH WOULD PREVENT COMPANIES FROM REPLACING STRIKING WORKERS THE HOUSE APPROVED A STRIKER REPLACEMENT BILL LAST SUMMER ON OTHER FRONTS SMALL CONTRACTORS ARE FOCUSING ON PROPOSED LEGISLATION TO MODIFY THE WAY THE FEDERAL GOVERNMENT BUYS GOODS AND SERVICES THE BILL WHICH CONGRESS IS LIKELY TO PASS IS DESIGNED TO HELP CONTRACTORS GET MORE INFORMATION BEFORE AND AFTER THEY BID ON GOVERNMENT CONTRACTS AND TO SIMPLIFY THE WHOLE PROCUREMENT PROCEDURE BUT THE AMERICAN SUBCONTRACTORS ASSOCIATION WHICH REPRESENTS MANY SMALL GOVERNMENT CONTRACTORS ARGUES THAT SOME CLINTON ADMINISTRATION PROPOSALS FOR SIMPLIFYING FEDERAL PROCUREMENT COULD HURT SMALL AND MINORITY OWNED COMPANIES ONE OF THE PROPOSALS WOULD END THE REQUIREMENT THAT MAJOR CONTRACTORS SUBMIT PLANS FOR HOW THEY WOULD USE SMALL AND MINORITY OWNED COMPANIES AS SUBCONTRACTORS WE'RE HOPING CONGRESS WILL LISTEN TO OUR CONCERNS SAYS COLETTE NELSON EXECUTIVE DIRECTOR OF THE SUBCONTRACTORS GROUP ADMINISTRATION OFFICIALS SAY A FINAL DECISION HASN'T BEEN MADE ON CHANGING THE PROCUREMENT PROCEDURE THE ADMINISTRATION WANTS TO MAKE THINGS SIMPLER FOR CONTRACTING OFFICERS AND LET BIG COMPANIES KEEP A BIGGER SHARE OF THE WORK INHOUSE CONGRESS ALSO WILL VOTE ON REAUTHORIZING ALL OF THE SMALL BUSINESS ADMINISTRATION'S LOAN PROGRAMS THIS YEAR OFFICIALS SAY S. B. A. ADMINISTRATOR ERSKINE BOWLES MAY HAVE WON SUPPORT FROM PRESIDENT CLINTON FOR A SUBSTANTIAL INCREASE IN FEDERAL DOLLARS COMMITTED TO THE AGENCY'S BASIC LOAN GUARANTEE PROGRAM CONGRESS APPROVED FUNDS TO BACK ABOUT SEVEN BILLION DOLLARS IN LOANS IN THE CURRENT FISCAL NINETEEN NINETY FOUR YEAR QUOTE THE WOMEN QUOTE A NINETEEN THIRTY SIX PLAY BY CLARE BOOTH LUCE IS THE STORY OF A GROUP OF RICH SOCIETY LADIES WHO SPEND THEIR LIVES TRYING TO CATCH A MAN PARTICULARLY IF HE IS SOMEONE ELSE'S HUSBAND THOUGH ITS BITCHY DIALOGUE REMAINS AMUSING EVERYONE ASSUMED IT WAS HOPELESSLY DATED EVERYONE THAT IS EXCEPT DIRECTOR ANNE BOGART WHO HAS MOUNTED AN ASTONISHING NEW PRODUCTION AT THE HARTFORD STAGE WITHOUT CHANGING EITHER THE LINES OR THE CHARACTERS SHE HAS LITERALLY REINVENTED THE PLAY THE SET BY LOY ARCENAS IS AN ALL WHITE BARE STAGE ACROSS THE REAR IS A LUCITE WALL WITH A CROSSWALK AND A SPIRAL STAIRCASE ASCENDING INTO THE SPACE ABOVE THE STAGE ITSELF IS EMPTY EXCEPT FOR A BABY GRAND PIANO AT ONE SIDE ALL THE OTHER FURNITURE AND PROPS MOSTLY OF GLASS AND CHROME ARE CARRIED ON BY THE PERFORMERS WHO ARE DRESSED AUTHENTICALLY IN NINETEEN THIRTIES ATTIRE WITH HATS VEILS GLOVES AND FOX FURS LOOPED AROUND THEIR NECKS MS. BOGART HAS ADDED A NARRATOR CHORUS IN THE PERSON OF HELEN GALLAGHER WHO INTRODUCES EACH SCENE MS. BOGART HAS ALSO INTERPOLATED SIX SONGS FROM THE PERIOD BUT THESE DO NOT FUNCTION LIKE MUSICAL COMEDY NUMBERS UNDERSCORING THE MOOD OR THEME MOST OFTEN THEY MAKE AN IRONIC COMMENT ON THE ACTION OF THE PLAY FOR EXAMPLE TWO OPTIMISTIC UPBEAT SONGS SINGING IN THE RAIN AND FOOLS RUSH IN ARE PERFORMED AT POINTS WHERE THE WOMEN ARE UNDERGOING SEVERE EMOTIONAL TRAUMAS NOT MOMENTS OF CAREFREE LOVE MARY HAINES ELLEN LAUREN IS A CONTENTED WIFE WHO DISCOVERS THAT HER HUSBAND IS HAVING AN AFFAIR WITH A TRASHY FLASHY SHOPGIRL NAMED CRYSTAL ALLEN LAILA ROBINS MARY IS NO MATCH FOR CRYSTAL AND IN SCENES WITH HER FRIENDS WHO BETRAY HER AT EVERY TURN HER MOTHER LYNN COHEN AND HER YOUNG DAUGHTER CAITLIN MITCHELL SHE IS DEVASTATED MS. BOGART HAS THE PERFORMERS PLAY THESE SCENES IN DEADLY EARNEST AND THEY ARE EXCEEDINGLY MOVING OTHER SCENES HOWEVER SUCH AS THOSE IN RENO WHERE BORED WOMEN WAIT FOR DIVORCES TO COME THROUGH ARE PLAYED FOR BROAD FARCE SOMEHOW WITH THE PUNCTUATION OF THE SONGS AND INTRODUCTIONS BY MS. GALLAGHER IT ALL FITS TOGETHER MIXING THE MUSIC AND THE DRAMA HAS AN UNEXPECTED AND PARTICULARLY STARTLING EFFECT WHEN MARY IS AT A LOW POINT FOUR WOMEN WEARING THEIR NINETEEN THIRTIES BEST BEGIN SINGING DUKE ELLINGTON'S IN MY SOLITUDE AND THE PLIGHT OF THE CHARACTERS TAKES ON AN ENTIRELY NEW DIMENSION TOWARD THE END OF THE PLAY WHEN SIMILARLY DRESSED WOMEN BREAK INTO CLOSE HARMONY WITH COLE PORTER'S DOWN IN THE DUMPS ON THE NINETIETH FLOOR THE EMPTY LIVES OF THESE SOCIETY MATRONS COME RESOUNDINGLY INTO FOCUS THESE ARE WOMEN WHO CANNOT ENVISION LIVES WITHOUT MEN THE NOTION OF A SELF RELIANT WOMAN WITH HER OWN IDENTITY AND HER OWN CAREER HAS NEVER DAWNED ON THEM IF THE WOMEN IS A NINETEEN THIRTIES PLAY RETROFITTED FOR THE NINETEEN NINETIES THE AMERICA PLAY BY SUZAN LORI PARKS IS A GROUND ZERO NINETEEN NINETIES WORK MS. PARKS A POET AND WORD MUSICIAN IS FASCINATED WITH QUESTIONS OF HISTORY AND IDENTITY ESPECIALLY AS THEY AFFECT THE AFRICAN AMERICAN EXPERIENCE AND SHE EXPRESSES THAT INTEREST IN UNMISTAKABLY AVANT GARDE TERMS THE STORY OF THE AMERICA PLAY WHICH IS BEING GIVEN ITS PREMIERE AT THE YALE REPERTORY THEATRE IN NEW HAVEN CONCERNS AN AFRICAN AMERICAN GRAVE DIGGER REGGIE MONTGOMERY WHO HAS A PHYSICAL RESEMBLANCE TO ABRAHAM LINCOLN HE BECOMES OBSESSED WITH LINCOLN GIVES UP HIS DIGGING CAREER LEAVES BEHIND HIS WIFE GAIL GRATE AND FIVE YEAR OLD SON MICHAEL POTTS AND SETS OUT ACROSS THE COUNTRY PORTRAYING LINCOLN IN A SORT OF ONE MAN SHOW HE REFERS TO HIMSELF AS THE FOUNDLING FATHER AND IN HIS PERFORMANCES HE STRIKES A PARTICULARLY STRONG CHORD WITH HIS AUDIENCES WHEN HE LETS THEM COME ON STAGE AND RE ENACT THE SHOOTING OF LINCOLN IN HIS BOX AT FORD'S THEATRE ACT TWO TAKES PLACE SOME THIRTY FIVE YEARS LATER THE HERO HAS DIED OUT WEST AND HIS WIFE AND SON SET OUT TO FIND HIS REMAINS AND GIVE HIM A PROPER BURIAL THE STORY OF QUOTE THE AMERICA PLAY QUOTE IS TOLD IN A MANNER FREQUENTLY ENCOUNTERED IN EXPERIMENTAL THEATER ACT ONE IS A MONOLOGUE BY MR. MONTGOMERY AND ACT TWO IS A SERIES OF VIGNETTES AND TABLEAUS NOT UNLIKE THOSE FAVORED BY ROBERT WILSON ACTIONS ARE REPEATED AND INDIVIDUAL MOMENTS HELD UP FOR CLOSE SCRUTINY INTERSPERSED AMONG SCENES WITH THE WIFE AND SON ARE BRIEF INTERLUDES FROM OUR AMERICAN COUSIN THE PLAY BEING PRESENTED AT FORD'S THEATRE THE NIGHT LINCOLN WAS SHOT THE ENTIRE PIECE HAS BEEN SENSITIVELY DIRECTED BY LIZ DIAMOND WHO HAS COLLABORATED WITH MS. PARKS ON OTHER PLAYS IT IS NOT AN EASY PLAY TO REALIZE ON STAGE MS. DIAMOND WISELY FOCUSED ON VARIOUS CENTRAL METAPHORS THAT GIVE THE PLAY A THEMATIC SHAPE WHERE IT LACKS A CONVENTIONAL SKELETON OF SEQUENTIAL PLOT DIGGING IS ONE OF THESE CONTROLLING TROPES THE FOUNDLING FATHER REMEMBER WAS ORIGINALLY A GRAVE DIGGER ON HIS HONEYMOON HE AND HIS WIFE HAD VISITED A THEME PARK THE GREAT HOLE OF HISTORY THEY STOOD ON THE EDGE OF A VAST CRATER AND VIEWED SCENES FEATURING FAMOUS PEOPLE OF THE PAST AT THE END OF HIS LIFE THE FOUNDLING FATHER DUG A SIMILAR CRATER OUT WEST HOPING TO BURY THE ARTIFACTS OF HIS OWN LIFE IT IS HERE THE WIFE AND SON DIG IN THE LAST ACT AS THEY ATTEMPT TO DISCOVER THE TRAIL OF THEIR LOST HUSBAND AND FATHER DESPITE THEIR PERVASIVENESS HOWEVER THE POINT OF THESE MANY EXCAVATIONS IS NOT ENTIRELY CLEAR THE SIGNIFICANCE OF ANOTHER MAJOR THEME FOLLOWING ANOTHER PERSON'S FOOTSTEPS IS MORE OBVIOUS THE FOUNDLING FATHER ATTEMPTS TO RETRACE LINCOLN'S STEPS AND HIS WIFE AND SON IN TURN HOPE TO FOLLOW HIS PATH THERE APPEARS TO BE A MORAL LESSON HERE FOR BLACK AMERICANS FOLLOWING LINCOLN AS GREAT A HERO IN THE STRUGGLE FOR BLACK EQUALITY AS HE MAY BE IS NO SUBSTITUTE FOR BLAZING YOUR OWN TRAIL MS. PARKS IS A HIGHLY ORIGINAL AND TALENTED WRITER AND THE AMERICA PLAY IS BOTH ARRESTING AND PROVOCATIVE AT THE SAME TIME IT REMAINS A DIFFICULT PIECE ENIGMATIC AND AT TIMES OPAQUE STILL THIS IS PRECISELY THE KIND OF WORK A THEATER LIKE THE YALE REP SHOULD BE PRESENTING PARTICULARLY AT A TIME WHEN OTHER REGIONAL THEATERS ARE INCREASINGLY UNADVENTUROUS BOTH THE WOMEN AND THE AMERICA PLAY RUN THROUGH FEBRUARY FIFTH THEY SAY EVERYTHING'S BIGGER IN TEXAS BUT TO LOOK AT THE LONG TERM RETURNS CHALKED UP BY TEXAS BASED MUTUAL FUNDS YOU WOULD SWEAR THIS WAS RHODE ISLAND FOR THE PAST FIVE AND TEN YEAR PERIODS MOST TEXAS EQUITY FUNDS UNDERPERFORMED THEIR NATIONAL PEER GROUPS ACCORDING TO AN ANALYSIS FOR TEXAS JOURNAL BY LIPPER ANALYTICAL SERVICES INCORPORATED A SUMMIT N. J. PUBLISHER OF MUTUAL FUND DATA WHATEVER THE CATEGORY FEW OF THE ROUGHLY EIGHTY FUNDS BASED HERE HAVE BEEN LONG TERM STANDOUTS AND IN MANY CASES THEIR PERFORMANCE HAS BEEN DOWNRIGHT PUNY CONSIDER AMERICAN CAPITAL ASSET MANAGEMENT INCORPORATED'S GROWTH AND INCOME FUND ALTHOUGH THE HOUSTON FUND'S AIM IS LONGTERM GROWTH ITS ONE HUNDRED NINETY PERCENT CUMULATIVE RETURN FOR THE DECADE ENDED DECEMBER THIRTY FIRST TRAILED ITS GROWTH FUND PEER GROUP BY ABOUT FIFTY PERCENTAGE POINTS HOUSTON BASED TEXAS COMMERCE BANCSHARES INCORPORATED'S BALANCED FUND HAS LOOKED SIMILARLY ANEMIC WITH FIVE YEAR RETURNS OF SIXTY SIX PERCENT COMPARED WITH EIGHTY EIGHT PERCENT FOR THE COMPARABLE LIPPER INDEX AND CAPSTONE ASSET MANAGEMENT INCORPORATED'S U. S. TREND FUND ALSO OUT OF HOUSTON TRAILED LIPPER'S GROWTH FUND INDEX BY MORE THAN FIFTY ONE POINTS FOR THE TEN YEAR PERIOD FOR TEXANS SUCH NUMBERS ARE MORE THAN A BLOW TO STATE PRIDE THEY'RE ALSO A BLOW TO THEIR WALLETS THAT'S BECAUSE ASIDE FROM A FEW NATIONALLY KNOWN MUTUAL FUNDS BASED HERE MOST TEXAS FUNDS GET THEIR MONEY FROM TEXANS SO WHY THE LACKLUSTER PERFORMANCE FOR STARTERS TEXAS HOSTS A LARGE NUMBER OF SMALL FUNDS WHOSE TINY ASSET BASES MEAN THEIR OVERHEAD IS RELATIVELY HIGH CUTTING INTO RETURNS SOME FUND MANAGERS ALSO SAY THEY DON'T AIM FOR THE FRONT OF THE PACK OPTING INSTEAD FOR LESS RISKY MORE STABLE INVESTMENTS AND CRITICS ARGUE THAT TEXAS FUNDS HAVE A HARD TIME ATTRACTING TOP RATE MONEY MANAGERS WHO INSTEAD GRAVITATE TOWARD MUTUAL FUND MECCAS IN NEW YORK BOSTON AND PHILADELPHIA QUOTE FOR WHATEVER REASONS THERE JUST HASN'T BEEN A LOT OF TALENT RUNNING TEXAS FUNDS QUOTE SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER IN CHICAGO THIS DOESN'T MEAN THAT ALL TEXAS EQUITY FUNDS HAVE BEEN ROTTEN PERFORMERS SOME HAVE FARED WELL AND MANY OTHERS ARE IMPROVING INDEED IF YOU LOOK AT NINETEEN NINETY THREE RETURNS ALONE THE PICTURE FOR TEXAS FUNDS IMPROVES SIGNIFICANTLY FOR EXAMPLE US GOLD SHARES A FUND MANAGED BY UNITED SERVICES ADVISORS INCORPORATED OF SAN ANTONIO WAS THE SECOND BEST FUND IN THE COUNTRY LAST YEAR WITH A ONE HUNDRED TWENTY FOUR PERCENT RETURN ACCORDING TO LIPPER BUT A YEAR DOESN'T A MUTUAL FUND STAR MAKE OVER THE FIVE YEAR PERIOD ENDED IN DECEMBER US GOLD SHARES RANKED AS THE SEVENTH WORST FUND IN THE COUNTRY WITH A TOTAL RETURN OF LESS THAN ONE PERCENT OVER TEN YEARS THE FUND WAS FOURTH FROM THE BOTTOM SURE THERE WAS AN EXTENDED BEAR MARKET IN GOLD BUT LIPPER'S GOLD INDEX STILL MANAGED A CUMULATIVE FORTY THREE PERCENT GAIN OVER THE FIVE YEAR PERIOD THUS FIVE AND TEN YEAR NUMBERS OFFER A MORE MEANINGFUL GLIMPSE OF FUND PERFORMANCE AN INDICATION OF HOW WELL MANAGERS BATTLED A CHANGING ECONOMY BOOMING AND BUSTING INDUSTRIES AND BOTH THE MINI BEAR MARKET OF NINETEEN NINETY AND THE OCTOBER NINETEEN EIGHTY SEVEN CRASH A KEY PROBLEM FOR TEXAS BASED FUNDS IS THAT MOST OF THEM HAVE LESS THAN TWO HUNDRED MILLION DOLLARS IN ASSETS AND MANY DON'T EVEN REACH TWENTY MILLION DOLLARS THOSE ARE RELATIVELY SMALL NUMBERS IN THE MUTUAL FUND GAME AND IT PRESENTS MANAGERS WITH A VARIETY OF CHALLENGES WHEN CONCORDE FINANCIAL CORPORATION OF DALLAS LAUNCHED ITS ONLY FUND VALUE FUND IN NINETEEN EIGHTY SEVEN IT COULDN'T FIND LOCAL EXPERTS IN FUND MARKETING OR CUSTODIAL AND LEGAL SERVICES SAYS ELIZABETH FOSTER ANALYST SLASH SECRETARY FOR THE FUND VALUE FUND A GROWTH AND INCOME FUND WITH TWELVE POINT SIX MILLION DOLLARS IN ASSETS HAD AN AVERAGE ANNUAL RETURN OF SEVEN POINT ONE PERCENT FOR THE FIVE YEARS ENDED IN DECEMBER NEARLY HALF THE THIRTEEN POINT THREE PERCENT PEER GROUP AVERAGE TEXAS IS BEHIND THE LEARNING CURVE AND THAT CERTAINLY MAKES IT MORE DIFFICULT FOR US MS. FOSTER SAYS THE RESULT IS THAT SMALL OUTFITS SUCH AS CONCORDE OR HERBERT R. SMITH INCORPORATED WHICH RUNS THE AVONDALE TOTAL RETURN FUND OUT OF WICHITA FALLS CAN'T SPREAD OVERHEAD AMONG SEVERAL FUNDS AND THEY CONTRACT OUT FOR MUCH IF NOT ALL OF THEIR BACK OFFICE NEEDS IN THE CASE OF AVONDALE A BALANCED FUND WITH JUST EIGHT MILLION DOLLARS IN ASSETS AND ABOUT ONE HUNDRED THIRTY SHAREHOLDERS THE EXPENSES OF RUNNING THE FUND APPROACH ONE POINT EIGHT PERCENT MORE THAN DOUBLE THE AVERAGE FOR LARGE BALANCED FUNDS AND IT USED TO BE MUCH WORSE AVONDALE WHICH RETURNED ABOUT EIGHT POINT EIGHT PERCENT ANNUALLY OVER THE PAST FIVE YEARS COMPARED WITH THIRTEEN POINT FOUR PERCENT FOR LIPPER'S BALANCED FUND INDEX HAS TRIMMED ITS COSTS TWENTY FIVE PERCENT IN RECENT YEARS BY LINKING UP WITH PROFESSIONALLY MANAGED PORTFOLIOS A NEW YORK UMBRELLA GROUP OF SMALL FUNDS THAT NEGOTIATES FOR REDUCED RATES FOR PRINTING ACCOUNTING LEGAL AND OTHER SERVICES ANOTHER HANDICAP FOR THE SMALL TEXAS FUNDS NO DEPTH WITH SMALL FUNDS INVESTORS ARE BUYING ONE PERSON NOT A RESEARCH TEAM SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER IN CHICAGO WHILE LARGER FUND COMPANIES SUCH AS SAN ANTONIO'S U. S. A. A. INVESTMENT MANAGEMENT INCORPORATED EMPLOY A DOZEN OR MORE EQUITY RESEARCH ANALYSTS SMALL FUNDS CAN'T AFFORD SUCH A LUXURY AS SUCH RETURNS CAN SUFFER SIMPLY BECAUSE PORTFOLIO MANAGERS DON'T HAVE TIME TO ANALYZE AS MANY OPTIONS SAYS MR. PERRITT THE NEWSLETTER EDITOR SAYS HERBERT SMITH WHO NOT ONLY HEADS UP HIS EPONYMOUS MONEY MANAGEMENT FIRM BUT ALSO SERVES AS AVONDALE'S PORTFOLIO MANAGER AND ITS FUNDAMENTAL AND TECHNICAL ANALYST YOU'RE TALKING TO THE RESEARCH DEPARTMENT BUT SIZE DOESN'T ENTIRELY EXPLAIN TEXAS' DISMAL MUTUAL FUND RECORD SOME OF THE BIGGEST AND BEST KNOWN TEXAS MUTUAL FUNDS HAVE FARED POORLY AS WELL FOR INSTANCE GIANT AMERICAN CAPITAL WHOSE NINE EQUITY FUNDS MANAGE MORE THAN NINE POINT FIVE BILLION DOLLARS COULD ONLY MUSTER ONE FUND THAT BEAT ITS LIPPER BENCHMARK IN THE PAST DECADE THAT FUND EMERGING GROWTH A FUND WHICH BEAT THE MARKET AVERAGE BY FOURTEEN POINT TWO PERCENTAGE POINTS ALAN SACHTLEBEN AMERICAN CAPITAL'S CHIEF INVESTMENT OFFICER FOR EQUITIES SAYS THE COMPANY'S UNDERPERFORMANCE IS PARTLY DUE TO ITS CONSERVATIVE PHILOSOPHY QUOTE WE DON'T WANT TO SHOOT THE LIGHTS OUT ONE YEAR ONLY TO RISK FALLING ON OUR FACE THE NEXT YEAR QUOTE HE SAYS YOU LOSE SHAREHOLDERS IN THE WHIPSAW PERHAPS BUT MR. SACHTLEBEN ALSO CONCEDES THAT AMERICAN CAPITAL WISHES IT HAD SHOT OUT A FEW MORE LIGHTS THAN IT DID AND HE SAYS IT IS DETERMINED TO TURN THINGS AROUND ONE BRIGHT SPOT AMERICAN CAPITAL'S EQUITY INCOME A FUND FOR THE FIVE YEARS THROUGH NINETEEN EIGHTY EIGHT EQUITY INCOME TYPICALLY SAT IN THE BOTTOM HALF OF MORNINGSTAR'S PERFORMANCE QUARTILE RANKINGS THE FUND ROUTINELY HELD LARGE BETS IN A SINGLE SECTOR A TYPICAL INVESTMENT A FOUR POINT FIVE PERCENT STAKE IN MANUFACTURERS HANOVER CORPORATION COUPLED WITH A FOUR PERCENT STAKE IN CHEMICAL BANKING CORPORATION AS A RESULT POOR ECONOMIC NEWS OR THE CRASH OF A STOCK WITHIN A SECTOR COULD AND DID DRAG DOWN LARGE CHUNKS OF THE PORTFOLIO SO IN NINETEEN NINETY THE COMPANY NAMED JAMES GILLIGAN A SECURITIES ANALYST WITH NINE YEARS EXPERIENCE AT AMERICAN CAPITAL AS HEAD OF THE FUND THE THIRTY FIVE YEAR OLD MR. GILLIGAN SPENT HIS FIRST FEW WEEKS TURNING OVER ONE THIRD OF THE PORTFOLIO MOVING OUT OF LARGE FINANCIAL AND UTILITY SECTOR BETS AND TOWARD A MORE DIVERSIFIED AND LESS CONCENTRATED PORTFOLIO OF CONSUMER AND HEALTH CARE STOCKS INCLUDING MCDONALD'S CORPORATION SARA LEE CORPORATION AND HUMANA INCORPORATED UNDER HIS COMMAND EQUITY INCOME'S PERFORMANCE NEVER HAS SLIPPED BELOW MORNINGSTAR'S SECOND QUARTILE AND OVER THE FIVE YEARS ENDED IN DECEMBER THE FUND BEAT ITS LIPPER INDEX BY NEARLY ELEVEN PERCENTAGE POINTS GOOD SERVICE BUT U. S. A. A. INVESTMENT MANAGEMENT COMPANY WITH THREE POINT FIVE BILLION DOLLARS IN EQUITY ASSETS ALSO HAS GRAPPLED WITH ITS SHARE OF LAGGARD FUNDS TO BE SURE THE COMPANY HAS LONG CULTIVATED A REPUTATION FOR HAVING GOOD SERVICE AND SOME OF THE INDUSTRY'S LOWEST EXPENSE RATIOS WHICH EASE SOME OF THE PRESSURE TO PRODUCE STELLAR RETURNS BUT IN RECENT YEARS THE PERFORMANCE OF SOME FUNDS HAS DETERIORATED EVEN BY U. S. A. A.'S STANDARDS U. S. A. A.'S GOLD AGGRESSIVE GROWTH AND CORNERSTONE OFFERINGS ALL TRAILED THEIR RESPECTIVE BENCHMARK INDEXES BY DOUBLE DIGIT PERCENTAGE POINTS FOR THE FIVE YEARS ENDED IN DECEMBER THROUGH TEN YEARS THE COMPANY'S GROWTH FUND TRAILED THE BENCHMARK BY SEVENTY PERCENTAGE POINTS WITH TWENTY TWENTY THS HINDSIGHT WE CAN SAY THAT WE WERE INVESTED IN THE WRONG STOCKS IN THE WRONG INDUSTRIES SAYS MICHAEL ROTH PRESIDENT OF THE COMPANY'S MUTUAL FUND ARM AN EXAMPLE THE COMPANY'S MUTUAL AGGRESSIVE GROWTH FUND'S THIRTY EIGHT PERCENT STAKE IN HEALTH CARE STOCKS IN NINETEEN NINETY ONE THOUGH THAT PROVED BENEFICIAL THAT YEAR THE FUND HELD ON FOR THE ROUND TRIP WHEN THOSE STOCKS BURNED IN NINETEEN NINETY TWO TO BREAK WITH THE PAST U. S. A. A. PLACED BILL FRIES WHO HAS BEEN WITH U. S. A. A. AS A STOCK PICKER AND ANALYST FOR NINETEEN YEARS IN CHARGE OF MUTUAL AGGRESSIVE ON JANUARY FIRST IN HIS FIRST FEW WEEKS HE HAS COMPILED A LIST OF VALUE ORIENTED AND CYCLICAL STOCKS ABOUT A THIRD OF THE PORTFOLIO THAT WILL SUPPLY THE CASH NEEDED TO BRING A GROWTH BENT TO THE FUND WE'RE GOING TO TURN THIS FUND AROUND MR. FRIES SAYS HERE'S A LOOK AT THE RETURNS ON SELECTED TEXAS BASED MUTUAL FUNDS FOR THE FIVE AND TEN YEARS ENDED IN DECEMBER THE RETURNS ARE COMPARED WITH LIPPER ANALYTICAL SERVICES INCORPORATED'S INDEXES FOR FUNDS WITH SIMILAR INVESTMENT OBJECTIVES STOCK PRICES SLID AS INVESTORS RAKED IN PROFITS FROM HIGH FLYING CYCLICAL STOCKS BOND PRICES AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SANK SEVENTEEN POINT FOUR FIVE POINTS TO THREE THOUSAND EIGHT HUNDRED NINETY FIVE POINT THREE FOUR STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX SLIPPED ONE POINT OH FIVE TO FOUR HUNDRED SEVENTY POINT NINE TWO AND THE NASDAQ COMPOSITE INDEX FELL FOUR POINT TWO SIX TO SEVEN HUNDRED EIGHTY SIX POINT THREE NINE THE INDUSTRIAL AVERAGE WHICH PLUNGED MORE THAN TWENTY FIVE POINTS DURING THE DAY FINISHED BELOW THE THREE THOUSAND NINE HUNDRED LEVEL ONLY TWO TRADING DAYS AFTER BREAKING THROUGH THE PSYCHOLOGICAL BARRIER INTERNATIONAL BUSINESS MACHINES FOUGHT BACK FROM A THREE AND ONE QUARTER POINT DEFICIT TO FINISH DOWN THREE EIGHTHS AT FIFTY EIGHT AND ONE QUARTER INVESTORS WERE DISAPPOINTED BY I. B. M.'S FOURTH QUARTER EARNINGS WHICH CAME IN SLIGHTLY BELOW ANALYSTS' FORECASTS INVESTORS TOOK PROFITS AND RAN FROM HOT ECONOMICALLY SENSITIVE STOCKS THE MORGAN STANLEY CYCLICAL INDEX SANK ZERO POINT SEVEN PERCENT BUT HAS A THREE POINT SIX PERCENT GAIN SO FAR THIS YEAR BY CONTRAST THE CONSUMER INDEX WHICH INCHED UP YESTERDAY IS OFF TWO PERCENT ON THE YEAR THE INDEX TRACKS GROWTH STOCKS THOMAS MCMANUS A U. S. MARKET STRATEGIST AT MORGAN STANLEY SAID THE RETREAT AMONG CYCLICALS WAS UNDERSTANDABLE IN LIGHT OF THEIR RALLY THIS YEAR QUOTE BUT FOR NINETEEN NINETY FOUR PEOPLE WILL STILL WANT TO TILT THEIR PORTFOLIOS TOWARD COMPANIES THAT BENEFIT FROM THE ECONOMIC RECOVERY QUOTE MR. MCMANUS SAID THE MARKET MAY BE HEADED FOR A FEW MORE DOWN DAYS SAID ALFRED GOLDMAN DIRECTOR OF MARKET ANALYSIS AT A. G. EDWARDS AND SONS IN SAINT LOUIS HE NOTED THAT DECLINING STOCKS FAR OUTNUMBERED ADVANCERS AND THAT THE RATIO OF NEW STOCK PRICE HIGHS TO NEW LOWS WAS POOR BUT HE ADDED THAT INVESTORS SHOULD REMEMBER THAT THE INDUSTRIAL AVERAGE HAS CLIMBED A HEALTHY THREE POINT EIGHT PERCENT SINCE THE START OF THE YEAR THIS IS A VERY NORMAL TIME OUT NOT A TOP OUT MR. GOLDMAN SAID BOND PRICES FELL AMID A PICKUP IN JANUARY CONSUMER CONFIDENCE AND A SHARP JUMP IN SALES OF PREVIOUSLY OWNED HOMES IN DECEMBER ANALYSTS SAID THE GOVERNMENT'S AUCTION OF SEVENTEEN BILLION DOLLARS IN TWO YEAR NOTES WENT PRETTY MUCH AS EXPECTED WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED ZERO POINT FOUR TWO TO ONE HUNDRED THIRTEEN POINT FOUR ONE STOCK PRICES DECLINED VOLUME TOTALED THREE HUNDRED TWENTY SIX POINT ONE MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND TWO HUNDRED TWO ISSUES FELL AND EIGHT HUNDRED EIGHTY THREE ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE FELL MORE THAN ONE HALF POINT OR MORE THAN FIVE DOLLARS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT THREE FOUR PERCENT THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN FOUR NINE SIX MARKS AND ONE HUNDRED TEN POINT NINE OH YEN COMPARED WITH ONE POINT SEVEN FIVE OH EIGHT MARKS AND ONE HUNDRED ELEVEN POINT SEVEN OH YEN MONDAY THE TREASURY PLANS TO PAY DOWN SIX HUNDRED SEVENTY FIVE MILLION DOLLARS ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT TWENTY FIVE POINT TWO BILLION DOLLARS IN SHORT TERM BILLS MATURING BILLS OUTSTANDING TOTAL TWENTY FIVE POINT EIGHT EIGHT BILLION DOLLARS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN THIRTEEN WEEK AND TWENTY SIX WEEK BILLS MATURING ON MAY FIFTH AND AUGUST FOURTH RESPECTIVELY THE CUSIP NUMBER FOR THE THREE MONTH BILLS IS NINE ONE TWO SEVEN NINE FOUR K. FORTY FIVE THE CUSIP NUMBER FOR THE SIX MONTH BILLS IS NINE ONE TWO SEVEN NINE FOUR M. SIXTY EIGHT NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM DENOMINATIONS OF TEN THOUSAND DOLLARS MUST BE RECEIVED BY NOON E. S. T. MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY ONE P. M. E. S. T. WITH PRESIDENT CLINTON MOVING TOWARD A DECISION ON WHETHER TO LIFT THE TRADE EMBARGO ON VIETNAM SEVERAL LAWMAKERS ARE STEPPING UP EFFORTS TO TRY TO INFLUENCE THE OUTCOME SENATOR JOHN KERRY D. MASSACHUSETTS WHO FOLLOWS THE VIETNAM ISSUE CLOSELY AND WHO JUST RETURNED FROM A TRIP THERE SAID YESTERDAY THAT QUOTE THE TIME HAS COME TO FULLY LIFT THIS EMBARGO QUOTE BUT SENATOR ROBERT SMITH R. N. H. WHO ADAMANTLY OPPOSES SUCH A MOVE IS SET TO INTRODUCE AN AMENDMENT OUTLINING EXTENSIVE DISCLOSURES THAT HANOI WOULD HAVE TO MAKE CONCERNING MISSING U. S. SOLDIERS FROM THE VIETNAM WAR BEFORE MR. CLINTON CAN LIFT THE NINETEEN YEAR OLD EMBARGO ADMINISTRATION OFFICIALS SAID THAT MR. CLINTON'S TOP ADVISERS HAVE RECOMMENDED THAT THE EMBARGO BE LIFTED BASED ON PROGRESS THE VIETNAMESE HAVE ALREADY MADE AND THAT THE PRESIDENT MAY DECIDE THE ISSUE AS SOON AS NEXT WEEK LAST SEPTEMBER MR. CLINTON LOOSENED THE EMBARGO BY PERMITTING U. S. COMPANIES TO BID ON PROJECTS IN VIETNAM THAT ARE FINANCED BY INTERNATIONAL FINANCIAL INSTITUTIONS MR. KERRY WHO LAST YEAR HEADED A SPECIAL SENATE COMMITTEE LOOKING INTO THE FATE OF THE UNACCOUNTED FOR U. S. SOLDIERS SAID DURING A BRIEFING YESTERDAY THAT THE SANCTIONS HAVE BECOME COUNTERPRODUCTIVE HE SAID VIRTUALLY ALL OTHER NATIONS IGNORE THE SANCTIONS AND THEREFORE THE U. S. IS PENALIZING ITSELF MORE THAN VIETNAM WHOSE ECONOMY IS GROWING RAPIDLY FURTHER HE SAID VIETNAM HAS PROVIDED SIGNIFICANT COOPERATION IN THE LAST TWO YEARS IN HELPING TO RESOLVE THE ISSUE CANADIAN PRODUCTION OF MARKET PULP ROSE FOUR PERCENT IN DECEMBER FROM A YEAR EARLIER WHILE SHIPMENTS ROSE ELEVEN PERCENT THE CANADIAN PULP AND PAPER ASSOCIATION AN INDUSTRY GROUP SAID CANADIAN MILLS PRODUCED SIX HUNDRED SEVENTEEN THOUSAND METRIC TONS OF MARKET PULP IN DECEMBER UP FROM FIVE HUNDRED NINETY FIVE THOUSAND TONS A YEAR EARLIER A METRIC TON IS TWO THOUSAND TWO HUNDRED FOUR POINT SIX TWO POUNDS THE DECEMBER EIGHTY EIGHTH PERCENT OPERATING RATE WAS UNCHANGED FROM A YEAR EARLIER THE ASSOCIATION REPORTED SHIPMENTS IN DECEMBER ROSE TO SIX HUNDRED EIGHTY THREE THOUSAND TONS FROM SIX HUNDRED FIFTEEN THOUSAND TONS A YEAR EARLIER CANADIAN PRODUCER INVENTORIES AT THE END OF DECEMBER WERE FIVE HUNDRED FORTY SEVEN THOUSAND TONS A TWENTY SIX DAY SUPPLY COMPARED WITH SIX HUNDRED THIRTEEN THOUSAND TONS A THIRTY ONE DAY SUPPLY IN NOVEMBER MARKET PULP IS WOOD PULP SOLD ON THE OPEN MARKET TO PRODUCERS OF PAPER AND OTHER PRODUCTS THE STATISTICS EXCLUDE PULP CONSUMED AT THE PRODUCING MILL OR SHIPPED TO ANOTHER MILL THAT IS AFFILIATED WITH THE PRODUCING MILL WALT DISNEY COMPANY REPORTED RECORD PROFIT AND REVENUE FOR THE FISCAL FIRST QUARTER ENDED DECEMBER THIRTY FIRST BUOYED BY RECORD BREAKING HOME VIDEO SALES AND INSULATED FROM EURO DISNEY LOSSES THAT ALREADY HAD BEEN WRITTEN OFF NET INCOME CLIMBED THIRTY FOUR PERCENT TO THREE HUNDRED SIXTY EIGHT POINT SIX MILLION DOLLARS OR SIXTY EIGHT CENTS A SHARE FROM TWO HUNDRED SEVENTY FIVE POINT ONE MILLION DOLLARS OR FIFTY CENTS A SHARE A YEAR EARLIER EXCLUDING THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES REGISTERED LAST YEAR AFTER THE ACCOUNTING CHANGES DISNEY REPORTED A RESTATED NET LOSS IN THE YEAR AGO QUARTER OF NINETY SIX POINT FOUR MILLION DOLLARS OR EIGHTEEN CENTS A SHARE IN THE FIRST QUARTER OF FISCAL NINETEEN NINETY THREE BEFORE THE ACCOUNTING CHANGES DISNEY RECORDED A FORTY THREE MILLION DOLLAR LOSS IN CONNECTION WITH ITS FORTY NINE PERCENT INVESTMENT IN EURO DISNEY S. C. A. LAST NOVEMBER DISNEY TOOK A THREE HUNDRED FIFTY MILLION DOLLAR OR FORTY CENT A SHARE CHARGE CHANGING ITS ACCOUNTING AND FULLY RESERVING ITS RECEIVABLES IN THE TROUBLED THEME PARK OUTSIDE PARIS DISNEY WROTE DOWN ITS INVESTMENT IN THE PARK TO ZERO IF DISNEY WINDS UP INVESTING MORE IN EURO DISNEY AS PART OF RENEGOTIATIONS OVER THE REFINANCING OF THE RESORT THE ACCOUNTING AGAIN WILL CHANGE DISNEY SAID ITS LATEST FIRST QUARTER FIGURES DON'T REFLECT ANY RESULTS RELATED TO ITS EURO DISNEY INVESTMENT THE RESULTS EXCEEDED ANALYSTS' EXPECTATIONS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY DISNEY SHARES CLOSED AT FORTY SEVEN DOLLARS OFF TWELVE POINT FIVE CENTS ON VOLUME OF ONE POINT EIGHT MILLION SHARES FISCAL FIRST QUARTER REVENUE ROSE FOURTEEN PERCENT TO TWO POINT SEVEN THREE BILLION DOLLARS FROM TWO POINT THREE NINE BILLION DOLLARS DISNEY'S GAINS WERE SPEARHEADED BY ITS FILMED ENTERTAINMENT UNIT WHICH REPORTED A FORTY FIVE PERCENT GAIN IN OPERATING PROFIT TO THREE HUNDRED FORTY POINT TWO MILLION DOLLARS FROM TWO HUNDRED THIRTY FIVE POINT FOUR MILLION DOLLARS EVEN THOUGH IT LACKED A BLOCKBUSTER IN U. S. THEATERS DURING THE QUARTER REVENUE INCREASED TO ONE POINT FOUR THREE BILLION DOLLARS FROM ONE POINT TWO ONE BILLION DOLLARS MUCH OF THIS WAS GENERATED BY HOME VIDEO SALES OF QUOTE ALADDIN QUOTE WHICH HAS SOLD MORE THAN TWENTY MILLION UNITS IN THE U. S. TO MAKE IT THE LARGEST SELLING VIDEOCASSETTE RELEASE ITS PERFORMANCE WAS EVEN MORE IMPRESSIVE GIVEN THAT IT MUST BE COMPARED TO THAT OF LAST YEAR'S VIDEO RELEASE OF BEAUTY AND THE BEAST THE PREVIOUS RECORDHOLDER BUT PERHAPS THE BIGGEST IMPACT CAME FROM THE OVERSEAS HOME VIDEO RELEASE OF THE JUNGLE BOOK WHICH SOLD NEARLY FIFTEEN MILLION UNITS ANALYST RICHARD SIMON OF GOLDMAN SACHS AND COMPANY SAID HE BELIEVES THOSE SALES ADDED SIXTY MILLION DOLLARS TO SIXTY FIVE MILLION DOLLARS TO OPERATING PROFIT COMPARED WITH LAST YEAR'S INTERNATIONAL RELEASE OF CINDERELLA WHICH SOLD MUCH LESS TICKET SALES FOR ALADDIN OVERSEAS ALSO IMPROVED RESULTS DISNEY'S THEME PARK RESULTS WERE MORE OR LESS FLAT WALT DISNEY WORLD IN FLORIDA HAD A DECLINE IN ATTENDANCE WHICH THE COMPANY ATTRIBUTED TO A SLOWDOWN IN VISITORS FROM RECESSION PLAGUED EUROPE THE COMPANY DIDN'T MENTION THE LINGERING EFFECTS OF PUBLICITY ABOUT VIOLENCE AGAINST TOURISTS IN FLORIDA OR THE STRENGTHENED DOLLAR BUT SAID HIGHER PER CAPITA SPENDING AND HOTEL ATTENDANCE PARTLY OFFSET THESE FACTORS DISNEYLAND IN CALIFORNIA CONTINUED TO BENEFIT FROM ITS NEW TOON TOWN ATTRACTION THEME PARK REVENUE INCREASED THREE PERCENT TO SEVEN HUNDRED SIXTY EIGHT POINT NINE MILLION DOLLARS FROM SEVEN HUNDRED FORTY FIVE MILLION DOLLARS WHILE OPERATING PROFIT GREW ONE PERCENT TO ONE HUNDRED THIRTY EIGHT POINT ONE MILLION DOLLARS FROM ONE HUNDRED THIRTY SIX POINT SEVEN MILLION DOLLARS SALES OF CHARACTER MERCHANDISE AND GROWTH IN DISNEY'S RETAIL STORES HELPED CONSUMER PRODUCTS REVENUE TO GROW TWENTY TWO PERCENT TO FIVE HUNDRED THIRTY TWO MILLION DOLLARS FROM FOUR HUNDRED THIRTY SEVEN POINT ONE MILLION DOLLARS OPERATING PROFIT INCREASED SEVENTEEN PERCENT TO ONE HUNDRED FORTY SIX POINT ONE MILLION DOLLARS FROM ONE HUNDRED TWENTY FOUR POINT SIX MILLION DOLLARS TRUMPETS PLEASE INVESTMENT STRATEGISTS AT THE NATION'S LEADING BROKERAGE HOUSES HAVE MADE THEIR PREDICTIONS FOR NINETEEN NINETY FOUR AND WHAT THEY FORESEE IS ON SECOND THOUGHT SKIP THE TRUMPETS WHAT THEY FORESEE IS A HO HUM YEAR MARKET GURUS AT A DOZEN MAJOR SECURITIES FIRMS TRACKED BY THE WALL STREET JOURNAL AS PART OF A CONTINUING STUDY GENERALLY EXPECT RETURNS OF EIGHT PERCENT TO TEN PERCENT FROM STOCKS MOST OF THEM EXPECT RETURNS OF FIVE PERCENT TO SEVEN PERCENT FROM BONDS THIS YEAR AND THREE PERCENT FROM SAFE SHORT TERM QUOTE CASH QUOTE INVESTMENTS SUCH AS MONEY MARKET FUNDS HISTORICALLY THOSE ARE NORMAL RETURNS NEITHER GREAT NOR TERRIBLE THE MORE BEARISH STRATEGISTS STRESS THE MODESTY OF POTENTIAL GAINS AND THE HIGH LEVEL OF STOCK MARKET RISK THOSE IN THIS CAMP INCLUDE DAVID SHULMAN OF SALOMON BROTHERS RAO CHALASANI OF KEMPER SECURITIES AND NEWLY APPOINTED KATHERINE HENSEL OF LEHMAN BROTHERS THEY SUGGEST THAT INVESTORS PUT NO MORE THAN HALF THEIR MONEY IN STOCKS EVEN MANY OF THE BULLS CONCEDE THE POTENTIAL REWARDS MAY NOT BE MOUTH WATERING BUT THEY SAY THE RISK OF A STOCKMARKET DOWNTURN IS SMALL THIS GROUP WHICH INCLUDES PAINEWEBBER'S EDWARD KERSCHNER KIDDER PEABODY'S EASTON RAGSDALE AND GOLDMAN SACHS'S STEVEN EINHORN ADVOCATES STOCK POSITIONS OF CLOSE TO SEVENTY PERCENT THE BIGGEST BULL IN THIS CROWD IS GREG SMITH OF PRUDENTIAL SECURITIES WHO IS TELLING AGGRESSIVE INVESTORS TO PUT EIGHTY FIVE PERCENT OF THEIR MONEY IN STOCKS HE THINKS THE OVERALL STOCK MARKET COULD RISE TEN PERCENT THIS YEAR AND AN INDUSTRIALLY ORIENTED PORTFOLIO COULD GAIN A SUCCULENT FIFTEEN PERCENT TO TWENTY PERCENT THE AVERAGE BLEND RECOMMENDED BY THE ANALYSTS IN THE JOURNAL STUDY IS STOCK HEAVY SIXTY TWO PERCENT AND BOND LIGHT TWENTY SIX PERCENT WITH CASH A LITTLE BELOW NORMAL TWELVE PERCENT DURING THE PAST SEVEN YEARS ACCORDING TO ROBIN CARPENTER OF CARPENTER ANALYTICAL SERVICES HANOVER N. H. THE STRATEGISTS' AVERAGE BLEND HAS BEEN ABOUT FIFTY FOUR PERCENT STOCKS THIRTY ONE PERCENT BONDS AND FOURTEEN PERCENT CASH OTHER ASSETS SUCH AS GOLD OR REAL ESTATE HAVE SOMETIMES CREPT IN THE STUDY ESTIMATES HOW AN INVESTOR WOULD DO BY FOLLOWING EACH BROKERAGE HOUSE'S RECOMMENDED BLEND OF STOCKS BONDS AND CASH THE JOURNAL TRACKS THE STRATEGISTS' ADVICE AND ANALYZES IT WITH HELP FROM WILSHIRE ASSOCIATES OF SANTA MONICA CALIFORNIA AND CARPENTER ANALYTICAL FORMERLY ECONOMICS OFFICE HERE'S A RUNDOWN ON WHAT THE BIG BROKERAGE FIRMS ARE TELLING CUSTOMERS THESE DAYS THE FIRMS ARE LISTED IN ORDER OF HOW WELL THEIR RECOMMENDED INVESTMENT BLENDS PERFORMED IN THE SURVEY IN NINETEEN NINETY THREE EXCEPT AS NOTED ALL OF THE FIRMS ARE BASED IN NEW YORK PAINEWEBBER MR. KERSCHNER HAS LED THE PACK FOR FOUR OF THE SEVEN YEARS COVERED BY THE STUDY HE SAYS EXPERIENCE SUGGESTS THERE'S LITTLE REASON TO FEAR FOR STOCKS TODAY IN THE PAST FORTY YEARS THE STOCK MARKET'S HAD TEN DOWN YEARS HE SAYS IN SEVEN OF THE TEN CASES THE MARKET WAS CORRECTLY ANTICIPATING A DECLINE IN CORPORATE EARNINGS THE FOLLOWING YEAR WE DON'T THINK EARNINGS WILL BE DOWN IN NINETEEN NINETY FIVE NOT WITH EUROPE ABOUT TO RECOVER AND THE U. S. ECONOMY SO TEPID THAT THE FEDERAL RESERVE BOARD DOESN'T HAVE TO PUT ON THE BRAKE THE OTHER THREE BAD YEARS FEATURED SHARPLY RISING SHORT TERM INTEREST RATES MR. KERSCHNER SAYS HE DOESN'T SEE THAT AS LIKELY EITHER THOUGH HE BELIEVES THE FED MIGHT TIGHTEN A TAD HERE KIDDER PEABODY PRODUCTIVITY LOOKS FANTASTIC SAYS MR. RAGSDALE QUOTE AND SOME OF OUR MAJOR TRADING PARTNERS LOOK LIKE THEY'RE STARTING TO TURN THE CORNER ALTHOUGH IT'S A VERY WIDE CORNER QUOTE HE THINKS CORPORATE PROFITS WILL GROW NICELY ALLOWING STOCKS TO DELIVER A RETURN OF NINE PERCENT OR SO DESPITE HIGH CURRENT STOCK VALUATIONS HE CONSIDERS BONDS BETTER THAN CASH BUT NOT MUCH BOND PRICES WILL DROOP THIS YEAR AS INTEREST RATES CREEP UP HE BELIEVES GOLDMAN SACHS I THINK NINETEEN NINETY FOUR WILL DELIVER LOW DOUBLE DIGIT RETURNS ON STOCKS SAYS MR. EINHORN CO STRATEGIST WITH ABBY JOSEPH COHEN AT GOLDMAN SACHS LOW INFLATION CONTINUING FLIGHT BY SMALL INVESTORS FROM BANK CERTIFICATES OF DEPOSIT A TWELVE PERCENT RISE IN CORPORATE OPERATING PROFITS AND STABLE OR SLIGHTLY DECLINING INTEREST RATES WILL ALL HELP KEEP THE BULL MARKET ALIVE HE SAYS LEHMAN BROTHERS MS. HENSEL SEES THE FED TIGHTENING A LITTLE BIT AS THE ECONOMY STRENGTHENS SHE FIGURES THE RESULTING RISE IN SHORT TERM INTEREST RATES COULD PRECIPITATE A TEN PERCENT STOCK MARKET SLIDE BUT THAT DIP WOULD BE A BUYING OPPORTUNITY SHE SAYS I CAN'T WAIT I'M SALIVATING A. G. EDWARDS THE SAINT LOUIS FIRM INCREASED ITS STOCK ALLOCATION TO SIXTY FIVE PERCENT IN OCTOBER THE STOCK MARKET HAS BEEN LIKE THE ENERGIZER BUNNY IT JUST KEEPS GOING SAYS RAYMOND WORSECK ECONOMIST AND STRATEGIST DEAN WITTER REYNOLDS STRATEGIST BILL DODGE HAS STUCK WITH HIS CURRENT BLEND SIXTY PERCENT STOCKS TWENTY FIVE PERCENT BONDS FIFTEEN PERCENT CASH FOR TEN MONTHS THE BIGGEST SURPRISE OF NINETEEN NINETY FOUR HE SAYS MIGHT BE THAT THE BOND RALLY ROLLS ON PROPELLED BY LOW INFLATION AND LOW OIL PRICES IN STOCKS HE SAYS THE QUOTE BULL MARKET WITH A BEARD QUOTE IS STILL ALIVE PRUDENTIAL SECURITIES MR. SMITH WHO OFTEN TAKES A BOLD STANCE WITH HIS INVESTMENT MIX RANKS FIRST IN THE STUDY'S FIVE YEAR RANKINGS MOSTLY BECAUSE OF GREAT SHOWINGS IN NINETEEN EIGHTY EIGHT AND NINETEEN EIGHTY NINE I THINK EARNINGS ARE GOING TO BE TERRIFIC THIS YEAR HE SAYS CORPORATIONS HAVE SPENT FOUR YEARS REDUCING COSTS AND FINALLY THEY'RE GOING TO GET SOME REVENUE HE THINKS EUROPE'S ECONOMIES WILL BOUNCE BACK LATE THIS YEAR HELPING U. S. EXPORTS IT SEEMS LIKE EVERYONE THINKS THERE ARE BETTER OPPORTUNITIES OVERSEAS SAYS MR. SMITH THE BIG SURPRISE MIGHT BE THAT THE BEST MARKET'S RIGHT HERE AT HOME RIGHT UNDER OUR NOSE SMITH BARNEY SHEARSON SMITH BARNEY TINKERED JUST A BIT LAST QUARTER WITH ITS MIDDLE OF THE ROAD BLEND ADDING A SHADE TO STOCKS AND LIGHTENING UP SLIGHTLY ON BONDS MERRILL LYNCH STEADY AS SHE GOES CHARLES CLOUGH MERRILL LYNCH'S CHIEF STRATEGIST HAS HELD THE SAME BLEND AS MR. DODGE SIXTY PERCENT STOCKS TWENTY FIVE PERCENT BONDS FIFTEEN PERCENT CASH SINCE JULY SALOMON BROTHERS MR. SHULMAN THINKS STOCKS WILL PROVIDE ABOUT A FIVE PERCENT RETURN THIS YEAR LAST YEAR WE HAD A ONCE IN A GENERATION BOND RALLY HE SAYS QUOTE WE HAD A FRIENDLY FED ALL YEAR AN EIGHTEEN PERCENT INCREASE IN OPERATING PROFITS AND A FIVE DOLLAR DROP IN THE PRICE OF OIL QUOTE HE DOESN'T BELIEVE SUCH A FAVORABLE COMBINATION WILL RECUR RAYMOND JAMES AND ASSOCIATES AFTER BEING BEARISH AND SUFFERING FOR IT IN THE RANKINGS IT RANKED LAST AMONG TEN FIRMS WITH FIVE YEAR RECORDS RAYMOND JAMES TURNED MORE BULLISH ON STOCKS TWO WEEKS AGO THE SAINT PETERSBURG FLORIDA FIRM RAISED ITS RECOMMENDED HELPING OF STOCKS TO SEVENTY PERCENT KEMPER SECURITIES AFTER LEADING THE PACK IN NINETEEN NINETY TWO MR. CHALASANI OF KEMPER BROUGHT UP THE REAR IN NINETEEN NINETY THREE TO HIS CREDIT MR. CHALASANI URGED THE CHICAGO BASED FIRM'S CLIENTS TO PUT ABOUT THIRTY FIVE PERCENT OF THEIR MONEY ABROAD IN NINETEEN NINETY THREE WISE ADVICE AS IT TURNED OUT MR. CHALASANI DOESN'T NECESSARILY EXPECT U. S. STOCKS TO DECLINE THIS YEAR BUT SAYS THE RISK LEVEL IS BUILDING AND INVESTORS ARE COMPLACENT ABOUT IT NOW IT'S EASTMAN KODAK COMPANY'S TURN TO MEET THE CHALLENGE FROM ITS LOW PRICED RIVALS HEAD ON IN A RADICAL AND RISKY MOVE KODAK WILL OFFER ITS FIRST ECONOMY BRAND FILM FUNTIME TO COMPETE WITH PRIVATE LABEL KNOCKOFFS AND LOW PRICED COMPETITORS WHILE THE MOVE COULD MUDDY KODAK'S PROUD BRAND IMAGE THE COMPANY SEEMS TO HAVE HAD LITTLE CHOICE IN RECENT YEARS ITS SHARE OF THE HIGHLY PROFITABLE AND COMPETITIVE FILM MARKET HAS DWINDLED TO ABOUT SEVENTY PERCENT FROM AS HIGH AS SEVENTY SIX PERCENT FIVE YEARS AGO AS COMPETITORS LIKE FUJI PHOTO FILM COMPANY AND KONICA CORPORATION WOOED CONSUMERS WITH LOWER PRICED VERSIONS THE SUCCESS OF PRIVATE LABEL PRODUCTS HAS FORCED MANY LARGE BRAND NAMES FROM RALSTON PURINA COMPANY TO CONAGRA INCORPORATED TO EITHER OFFER PRIVATE LABEL VERSIONS OF PRODUCTS OR LOWER THE PRICE ON THEIR PREMIUM BRANDS KODAK HELD OUT SAYING CONSUMERS WERE WILLING TO PAY EXTRA FOR ITS RESPECTED TECHNOLOGY AND NAME QUOTE KODAK HAS ALWAYS RESISTED THE IDEA OF AN ECONOMY BRAND QUOTE SAID KIMBERLY RITRIEVI AN ANALYST WITH LEHMAN BROTHERS BUT BEGINNING THIS SPRING KODAK WILL OFFER TWICE A YEAR IN SPRING OR FALL ITS FUNTIME BRAND IN THE U. S. AND CANADIAN MARKETS THE BRAND IS EXPECTED TO BE PRICED ABOUT TWENTY PERCENT LOWER THAN KODAK'S MAINSTAY GOLD PLUS BRAND KODAK WILL LIMIT THE AMOUNT OF FUNTIME IT PRODUCES AND SHIPS TO EACH RETAILER AND ITS SEASONAL PROMOTIONS WILL BE GEARED TOWARD THE TIMES WHEN FILM BUYING ISN'T AS HEAVY AS IT IS DURING THE CHRISTMAS AND SUMMER SEASONS FUNTIME WILL BE OFFERED IN SPEEDS OF ONE HUNDRED AND TWO HUNDRED IN MULTIPACKS OF TWO TWENTY FOUR EXPOSURE ROLLS AND ANOTHER OF FOUR ROLLS THREE TWENTY FOUR EXPOSURES ONE THIRTY SIX EXPOSURES THE FILM WHICH WILL REACH RETAIL SHELVES IN LATE APRIL AND SEPTEMBER FOR TWO TO THREE MONTH SPURTS WILL BE SOLD IN ALL OF KODAK'S OUTLETS INCLUDING MAJOR RETAILERS SUCH AS WAL MART STORES INCORPORATED AND KMART CORPORATION KODAK HAD TRIED TO COUNTER ITS LOWER PRICED RIVALS BY TAKING THE HIGH ROAD DEVELOPING A SUPER PREMIUM FILM CALLED EKTAR FOR PROFESSIONALS AND SERIOUS AMATEUR SNAPSHOOTERS BUT THAT APPROACH APPARENTLY WASN'T QUITE AS SUCCESSFUL AS KODAK MIGHT HAVE HOPED BECAUSE CONSUMERS WEREN'T ABLE TO DISTINGUISH QUALITY NUANCES KODAK SAID ITS EKTAR PREMIUM BRAND WILL BE REMOVED FROM THE MARKET AND REPLACED BY A NEW FILM CALLED ROYAL GOLD WHICH WILL SELL FOR TWENTY PERCENT TO TWENTY FIVE PERCENT MORE THAN GOLD PLUS BUT LESS THAN EKTAR HAD SOLD FOR ROYAL GOLD WILL ALSO OFFER A SMALL INDEXING PRINT ILLUSTRATING ALL PHOTOS FROM EACH ROLL OF FILM TO FACILITATE FINDING NEGATIVES FROM WHICH TO CREATE REPRINTS ROYAL GOLD IS EXPECTED TO BENEFIT FROM BEING UNDER KODAK'S MAINSTAY GOLD UMBRELLA THIS REPOSITIONING IS INTELLIGENT RISKTAKING THAT WILL DRIVE BOTH OUR MARKET SHARE AND EARNINGS SAID ALEXANDER V. WASILOV VICE PRESIDENT AND GENERAL MANAGER OF KODAK CONSUMER IMAGING IN THE U. S. AND CANADA REGION IT'S VERY STRATEGIC IN NATURE AND WILL ALLOW US TO BE MORE SELECTIVE IN TARGETING CERTAIN CONSUMER SEGMENTS IN THE FIRST THREE QUARTERS OF NINETEEN NINETY THREE INDUSTRYWIDE FILM PRODUCT SALES ROSE ABOUT FOUR POINT TWO PERCENT IN DOLLARS YET KODAK'S GAIN WAS ONLY THREE POINT FIVE PERCENT WHILE THE GAIN FOR PRIVATE LABEL PRODUCTS WAS NINE PERCENT AND FIFTEEN PERCENT FOR FUJI PHOTO FILM ACCORDING TO MS. RITRIEVI OF LEHMAN BROTHERS KODAK SAID THE ROYAL GOLD FILM WILL BE INTRODUCED IN THE SECOND QUARTER REPLACING EKTAR WHICH HAS SEEN SLUGGISH SALES THE NEW ROYAL GOLD FILM WHICH OFFERS RICHER COLOR SATURATION AND SHARPER PICTURES WILL BE OFFERED IN SPEEDS OF TWENTY FIVE ONE HUNDRED FOUR HUNDRED AND ONE THOUSAND KODAK WILL TOUT ROYAL GOLD AS THE CHOICE FOR CONSUMERS WANTING TO MAKE ENLARGEMENTS FROM NEGATIVES KODAK ANNOUNCED ITS PLAN AT AN ANALYSTS' MEETING LATE YESTERDAY BEFORE TRADING WAS HALTED YESTERDAY ITS SHARES ROSE TWENTY FIVE CENTS TO FORTY TWO DOLLARS AND FIFTY CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ANALYSTS ARE WARY OF THE MOVES FEARING CONSUMERS WILL SWITCH TO THE LOWER PRICED FUNTIME FROM THE MORE PROFITABLE GOLD PLUS IT'S A DRACONIAN SOLUTION CUSTOMERS WILL BE MORE APT TO STOCK UP ON THE LOW END FILM AND THEN BUY THE EXPENSIVE STUFF ONLY FOR VERY SPECIAL OCCASIONS LIKE WEDDINGS SAID B. ALEX HENDERSON OF PRUDENTIAL SECURITIES INCORPORATED HOWEVER KODAK BELIEVES FUNTIME WILL ADD SALES DURING OFF SEASONS RATHER THAN CANNIBALIZE ITS GOLD SALES THE COMPANY SAID IT EXPERIMENTED WITH SEASONAL PROMOTIONS THIS YEAR WITH ITS GOLD FILM AND FOUND A MARKET BASIS FOR ITS FUNTIME CONSUMERS TAKE PICTURES FOR DIFFERENT REASONS AT DIFFERENT OCCASIONS AND THE COMPANY HAS SIMPLY DESIGNED FILMS TO MEET THEIR PICTURE TAKING HABITS MR. WASILOV SAID WE NOW HAVE ROYAL GOLD FILM FOR THOSE VERY SPECIAL MEMORIES THE BIRTH OF A BABY THE GRADUATION SAID MR. WASILOV QUOTE WE CONTINUE TO OFFER GOLD FILM FOR CAPTURING THOSE UNEXPECTED MOMENTS THE BABY SMILING THE FATHER AND SON PLAYING CATCH IN THE BACKYARD AND NOW WE WILL OFFER A SPECIAL PROMOTION TWICE A YEAR FEATURING A MODIFIED VERSION OF GOLD FILM AT A SLIGHTLY LOWER PRICE THAN OUR OTHER FILMS BUT SOME ANALYSTS WORRY ABOUT WHAT WILL HAPPEN SHOULD CUSTOMERS GET HOOKED ON THE LOWER PRICED FUNTIME BRAND AND ARE THEN UNABLE TO FIND IT IN OFF SEASONS IF CONSUMERS TRY THE PRODUCT AND LIKE IT MAY THIS NOT BE AN INCENTIVE FOR CONSUMERS TO EXPERIMENT WITH A YET CHEAPER PRODUCT LIKE PRIVATE LABEL WONDERS MICHAEL ELLMANN AN ANALYST WITH WERTHEIM SCHRODER AND COMPANY IF THIS TAKES PLACE THEN THIS STRATEGY WON'T WORK THE POTENTIAL WINNERS IN THAT SCENARIO KONICA AND BAYER A. G.'S AGFA BRAND BOTH OF WHICH HAVE LONG MARKETED THEMSELVES AS QUALITY BUT LOW PRICED ALTERNATIVES THERE WILL BE AN OPPORTUNITY FOR US AT KONICA SAID PAUL GORDON DIRECTOR OF MARKETING KONICA HE SAID WILL REMAIN PRICE COMPETITIVE WITH THE NEW KODAK PRODUCTS EVEN IF IT MEANS DROPPING KONICA PRICES IT SEEMS LIKE A DESPERATE MOVE TO REGAIN MARKET SHARE NOT A WAY TO MAKE THE INDUSTRY MORE PROFITABLE QUOTE BUT MR. ELLMANN SAID WEAKER COMPETITORS CAN'T WITHSTAND A PRICE WAR WITH KODAK WHICH CONTROLS A HUGE SEGMENT OF THE MARKET AND HAS EXTREMELY LOYAL CHANNELS OF DISTRIBUTION NOT TO MENTION CUSTOMERS SMALLER COMPANIES CAN'T AS READILY WITHSTAND PRESSURES ON PROFITS AND KODAK ISN'T EXPECTED TO RELENT ONCE IT GETS INTO A PRICE WAR HE ADDED IN ADDITION TO ITS NEW FAMILY OF FILM KODAK ANNOUNCED SEVERAL ADDITIONS TO ITS LINE OF CAMEO AND SINGLE USE CAMERAS AS WELL AS INTRODUCING ITS PHOTO IMPRESSIONS SYSTEM TO ALLOW CUSTOMERS TO PERSONALIZE PICTURE IN STORES BY ADDING TEXT AND GRAPHICS TO PICTURES THE SYSTEM WILL ALSO INCLUDE OTHER EQUIPMENT TO ALLOW CUSTOMERS TO WORK WITH RETAILERS IN STORE TO REMOVE RED EYE PROBLEMS WITH PICTURES AS WELL AS OTHER OPERATIONS TO MAKE REPRINTS AND ENLARGEMENTS WITHIN MINUTES KENNY GUINN FIFTY SEVEN YEAR OLD CHAIRMAN OF SOUTHWEST GAS CORPORATION WAS ELECTED A DIRECTOR OF THIS OWNER OF CASINOS AND HOTELS INCREASING THE BOARD TO SEVEN MEMBERS HONSHU PAPER COMPANY AND TAKASAKI PAPER MANUFACTURING COMPANY AGREED TO FORM A BROAD RANGE OF BUSINESS TIES IN PRODUCTION AND DISTRIBUTION COMPANY SPOKESMEN SAID HONSHU AND TAKASAKI WILL EACH INVEST ABOUT ONE BILLION YEN NINE MILLION DOLLARS IN THE OTHER'S SHARES HONSHU WILL BECOME THE FOURTH LARGEST SHAREHOLDER OF TAKASAKI A TAKASAKI SPOKESMAN SAID HONSHU IS JAPAN'S THIRD LARGEST PAPER AND PULP MAKER AND HOLDS THE LARGEST SHARE OF THE DOMESTIC MARKET FOR PAPERBOARD TAKASAKI IS A PAPERBOARD MAKER WITH THE ELEVENTH LARGEST SHARE IN JAPAN MERGERS IN JAPAN'S PAPER INDUSTRY SEEM TO HAVE BECOME THE ORDER OF THE DAY AS COMPANIES STRUGGLE AGAINST WEAK PRICES AFTER THE MERGER OF JUJO PAPER COMPANY AND SANYO KOKUSAKU PULP COMPANY TO FORM NIPPON PAPER INDUSTRIES COMPANY LAST APRIL TWO OTHER COMPANIES KANZAKI PAPER AND OJI PAPER COMPANY MERGED ON OCTOBER FIRST WILLIAM J. YOUNG WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS LASER MAKING COMPANY SUCCEEDING WILLIAM C. PATRIDGE WHO REMAINS CHAIRMAN MR. YOUNG FIFTY ONE YEARS OLD WAS MOST RECENTLY PRESIDENT OF VOLKSWAGEN OF AMERICA INCORPORATED A UNIT OF VOLKSWAGEN A. G. BASED IN WOLFSBURG GERMANY HE SAID HE RETIRED FROM THAT POSITION LAST APRIL MR. PATRIDGE FIFTY FIVE SAID APPLIED LASER PLANS TO ACQUIRE AS MANY AS EIGHT EARLY STAGE TECHNICAL COMPANIES IN THE NEXT TWELVE MONTHS QUALMED INCORPORATED PUEBLO COLORADO SAID ITS STOCKHOLDERS APPROVED THE COMPANY'S PROPOSED SEVEN HUNDRED SEVENTY FIVE MILLION DOLLAR MERGER WITH CLOSELY HELD H. N. MANAGEMENT HOLDINGS INCORPORATED WOODLAND HILLS CALIFORNIA BOTH COMPANIES OPERATE HEALTH MAINTENANCE ORGANIZATIONS QUALMED SAID THAT ABOUT SEVENTY FIVE PERCENT OF ITS SHARES OUTSTANDING WERE VOTED IN FAVOR OF THE STOCK MERGER THE COMPANY SAID IT EXPECTS THE TRANSACTION TO BE COMPLETED THIS WEEK FOLLOWING CLEARANCE BY REGULATORS UNDER THE MERGER SHAREHOLDERS OF EACH COMPANY ARE TO RECEIVE STOCK VALUED AT SEVEN HUNDRED SEVENTY FIVE MILLION DOLLARS IN THE COMBINED COMPANY YOUR DECEMBER TWENTY SECOND ARTICLE ON I. R. A. WITHDRAWALS CORRECTLY FOCUSED ON DELAYING OR MINIMIZING REQUIRED DISTRIBUTIONS THERE ARE HOWEVER OCCASIONS WHEN RECEIVING DISTRIBUTIONS BEFORE THE NECESSARY PAYOUT DATE CAN ACTUALLY REDUCE THE OVERALL TAX BITE THIS IS BECAUSE OF THE FIFTEEN PERCENT EXCESS DISTRIBUTIONS EXCISE TAX ON ANNUAL WITHDRAWALS OVER ONE HUNDRED FIFTY THOUSAND DOLLARS IN VERY LARGE I. R. A. ROLLOVERS WE ARE FINDING MORE INDIVIDUALS WHOSE REQUIRED DISTRIBUTIONS CAN THROW THE TAXPAYER OVER THE ONE HUNDRED FIFTY THOUSAND DOLLAR THRESHOLD FOR THIS SPECIAL TAX TAKING EARLY DISTRIBUTIONS MAY THEREFORE KEEP THE TAXPAYER UNDER THE THRESHOLD AMOUNT THE RULE HERE AS IN MOST PARTS OF THE TAX CODE IS QUOTE WORK THE NUMBERS AND DON'T ASSUME QUOTE YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS CHANGED LITTLE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIX MONTH SMALL DENOMINATION QUOTE SAVINGS QUOTE C. D.S SLIPPED TO TWO POINT SEVEN TWO PERCENT FROM TWO POINT SEVEN THREE PERCENT ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVE YEAR SAVINGS C. D.S EASED TO FOUR POINT FOUR FOUR PERCENT FROM FOUR POINT FOUR FIVE PERCENT THE WILMINGTON DELAWARE INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIX MONTH BROKER SOLD C. D.S EDGED DOWN TO THREE POINT ONE OH PERCENT FROM THREE POINT ONE TWO PERCENT ACCORDING TO BANXQUOTE ON FIVE YEAR BROKER SOLD C. D.S THE AVERAGE YIELD REMAINED AT FOUR POINT FOUR EIGHT PERCENT THE SURVEY SAID ON LARGE DENOMINATION JUMBO C. D.S WHICH TYPICALLY REQUIRE DEPOSITS OF NINETY FIVE THOUSAND DOLLARS AND MORE THE AVERAGE YIELD ON A SIX MONTH CERTIFICATE SLID TO TWO POINT SEVEN SIX PERCENT FROM TWO POINT SEVEN EIGHT PERCENT ON FIVE YEAR JUMBOS THE AVERAGE REMAINED AT FOUR POINT SIX THREE PERCENT BANXQUOTE REPORTED THE CLINTON ADMINISTRATION IS PROPOSING TO GIVE UNEMPLOYED WORKERS A CASH BONUS FOR FINDING NEW JOBS AND IT WANTS TO LET PART TIME WORKERS COLLECT UNEMPLOYMENT BENEFITS TO DISCOURAGE CORPORATE LAYOFFS THE PROPOSALS ARE PART OF THE WHITE HOUSE'S SHOWCASE JOB RETRAINING PROGRAM FOR WORKERS PERMANENTLY CUT FROM THEIR JOBS UNDER THE PLAN ADMINISTRATION OFFICIALS SAID YESTERDAY AS MANY AS FOUR HUNDRED THOUSAND UNEMPLOYED WORKERS EACH YEAR WOULD RECEIVE TWO FULL YEARS OF FEDERAL JOB TRAINING AND INCOME SUPPORT AN ADDITIONAL ONE POINT SIX MILLION UNEMPLOYED PEOPLE ARE EXPECTED TO USE SOME PART OF THE SYSTEM WHICH WILL INCLUDE JOB SEARCH ASSISTANCE AND CAREER COUNSELING THE CLINTON PLAN WHICH WOULD BE AIMED LARGELY AT MIDDLE CLASS WORKERS WOULD COMBINE SIX CURRENT FEDERAL TRAINING PROGRAMS AS WELL AS THE FEDERAL EMERGENCY UNEMPLOYMENT INSURANCE SYSTEM THE NEW QUOTE RE EMPLOYMENT SYSTEM QUOTE ALSO WOULD BE AVAILABLE TO PART TIME EMPLOYEES WHO HAVE LOST THEIR JOBS AND TO HOMEMAKERS TRYING TO RETURN TO THE WORK FORCE IT ISN'T CLEAR HOW THE ADMINISTRATION WILL PROPOSE TO PAY FOR THE PROGRAM CURRENTLY THE SIX PROGRAMS RECEIVE ABOUT ONE POINT FIVE BILLION DOLLARS OF FEDERAL FUNDS FOR JOB TRAINING IN ADDITION CONGRESS APPROPRIATES ABOUT TWELVE BILLION DOLLARS A YEAR IN EMERGENCY UNEMPLOYMENT BENEFITS ADMINISTRATION OFFICIALS ARE EXPECTED TO SEEK ABOUT THREE BILLION DOLLARS FOR THE REVAMPED TRAINING PROGRAM IT ISN'T CLEAR WHETHER THEY WILL REQUEST ANY FUNDS TO FURTHER EXTEND EMERGENCY UNEMPLOYMENT BENEFITS UNDER THE PROPOSAL UNEMPLOYED PEOPLE WOULD GO TO FEDERAL ONE STOP SHOPPING CENTERS NO MATTER WHY THEY LOST THEIR JOBS PERMANENTLY FIRED PEOPLE WOULD RECEIVE COUNSELING AND ADVICE ON CAREERS THAT ARE GROWING AND THEY MIGHT BE ADMITTED TO TRAINING PROGRAMS THEY WOULD RECEIVE INCOME SUPPORT WHILE ATTENDING THE TRAINING THE LABOR DEPARTMENT WHICH IS DEVELOPING THE PROPOSAL IS ADDING SEVERAL FEATURES DRAWN FROM STATE PROGRAMS FOR EXAMPLE ENTREPRENEURIAL MINDED WORKERS WOULD BE ALLOWED TO USE UNEMPLOYMENT BENEFITS TO START BUSINESSES ANOTHER SUCH WRINKLE WOULD BE REEMPLOYMENT BONUSES CASH PAYOUTS FOR PEOPLE WHO FIND WORK QUICKLY IN ITS DRAFT REPORT ON THE RE EMPLOYMENT SYSTEM THE LABOR DEPARTMENT SAYS THAT THREE PERCENT TO FIVE PERCENT OF ELIGIBLE UNEMPLOYMENT COMPENSATION RECIPIENTS WOULD GET SUCH CASH BONUSES IN PILOT PROJECTS FOUR STATES HAVE PAID INDIVIDUALS FROM FIVE HUNDRED DOLLARS TO MORE THAN ONE THOUSAND DOLLARS EACH FOR FINDING JOBS BEFORE THEIR UNEMPLOYMENT BENEFITS ARE EXHAUSTED AS IN THOSE PROGRAMS A FEDERAL PAYOUT WOULD BE MADE ONLY AFTER A WORKER STAYS IN A NEW JOB FOR A MINIMUM PERIOD MOREOVER PAYOUTS PROBABLY WOULD BE HANDED OUT AT THE DISCRETION OF EMPLOYMENT COUNSELORS AGENCY OFFICIALS SAID THE ADMINISTRATION ALSO WOULD PAY PARTIAL UNEMPLOYMENT BENEFITS TO INDIVIDUALS WHOSE EMPLOYERS REDUCE THEIR WORK HOURS IN LIEU OF LAYOFFS CURRENTLY SEVENTEEN STATES AS WELL AS CANADA AND WESTERN EUROPEAN COUNTRIES HAVE SUCH PROGRAMS IN CANADA FOR EXAMPLE THE PROGRAM AVOIDED FORTY THREE THOUSAND FULL TIME LAYOFFS IN NINETEEN NINETY TWO THE LABOR DEPARTMENT SAID NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE S. E. C. AND OTHER REGULATORS BY THE TENTH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPEN MARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN TWO DOLLARS A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED C. B. CHAIRMAN P. PRESIDENT D. DIRECTOR V. P. VICE PRESIDENT O. OFFICER Z. OTHER WILLIAM H. QUOTE BILL QUOTE GRIGG SIXTY ONE YEARS OLD WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF DUKE POWER COMPANY THE APPOINTMENT OF MR. GRIGG WHO HAS BEEN VICE CHAIRMAN OF THE LARGE ELECTRIC UTILITY SINCE NINETEEN NINETY ONE WAS EXPECTED THE MOVE IS EFFECTIVE APRIL TWENTY EIGHTH MR. GRIGG SUCCEEDS WILLIAM S. BILL LEE WHO HAS LED DUKE POWER FOR TWELVE YEARS MR. LEE SIXTY FOUR WILL SERVE AS A CONSULTANT TO THE COMPANY UNTIL HIS RETIREMENT ON JUNE THIRTIETH A FORMER MARINE WITH UNDERGRADUATE AND LAW DEGREES FROM DUKE UNIVERSITY IN DURHAM N. C. MR. GRIGG JOINED DUKE POWER IN NINETEEN SIXTY THREE AS ASSISTANT GENERAL COUNSEL AND HAS SERVED ON THE COMPANY'S BOARD SINCE NINETEEN SEVENTY TWO BEFORE BEING NAMED VICE CHAIRMAN MR. GRIGG WAS EXECUTIVE VICE PRESIDENT CUSTOMER GROUP CARDIOPULMONICS INCORPORATED SAID IT WITHDREW ITS APPLICATION TO THE FOOD AND DRUG ADMINISTRATION FOR PREMARKET APPROVAL OF ITS IVOX R. INTRAVASCULAR OXYGENATOR A DEVICE THAT SUPPLEMENTS THE ACTION OF THE LUNGS THE WITHDRAWAL FOLLOWS INDICATIONS FROM THE F. D. A. THAT THE COMPANY WOULD HAVE TO EXPAND ITS CLINICAL TRIALS TO MEET THE APPROVAL STANDARDS CARDIOPULMONICS ALSO SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE INNERDYNE MEDICAL INCORPORATED A CLOSELY HELD MAKER OF MEDICAL DEVICES BASED IN SUNNYVALE CALIFORNIA UNDER TERMS OF THE DEAL SHAREHOLDERS OF INNERDYNE WOULD RECEIVE SHARES EQUAL TO FORTY EIGHT PERCENT OF CARDIOPULMONICS' OUTSTANDING SHARES ON THE NASDAQ STOCK MARKET CARDIOPULMONICS SHARES CLOSED AT ONE POINT NINE SIX EIGHT SEVEN FIVE DOLLARS DOWN THREE POINT ONE TWO FIVE CENTS WITH ALL DUE RESPECT TO YOUR SCOTS BORN CORRESPONDENT PAUL GILMOUR QUOTE THE IRISH ARE SCOTTISH AND VICE VERSA QUOTE LETTERS JANUARY THIRD SCOTLAND IS A TRUE MELTING POT CONTAINING MUCH MORE THAN THE IRISH ORIGIN SCOTS THERE WERE ALSO CALEDONIANS PICTS WHO MAY HAVE DERIVED FROM AN EARLIER CELTIC MIGRATION FROM THE CONTINENT ANGLES THE NORTHERN BORDER OF ENGLISH NORTHUMBRIA ONCE WAS THE FIRTH OF FORTH AND EDINBURGH WAS NAMED AFTER KING EDWIN OF NORTHUMBRIA DANISH AND NORSE VIKINGS INCLUDING MY OWN TAIT ANCESTOR FROM ABERDEEN SHIRE THE WELSHSPEAKERS OF THE ANCIENT KINGDOMS OF STRATHCLYDE RHEGED AND MANAU GODDODIN THAT LIE IN THE SOUTHERN TIER OF MODERN SCOTLAND THE GREAT FIGHTING PATRIOT SIR WILLIAM WALLACE APPARENTLY WAS DESCENDED FROM THESE NORTH WELSH AND NORMANS KING ROBERT BRUCE'S ANCESTRAL SURNAME IS THE NORMAN DE BRUS AND JUST TO COMPLICATE MATTERS FURTHER THE NORMANS THEMSELVES WERE OF VIKING ORIGIN THUS THE TRANSPLANTED PROTESTANT SCOTS OF NORTHERN IRELAND TO THE EXTENT THAT THEY CAME FROM OUTSIDE OF THE GAELIC SPEAKING SCOTTISH ISLANDS AND HIGHLANDS ARE ETHNICALLY MORE HETEROGENEOUS AND THUS DISTINCT FROM THE IRISH CERTAINLY MUCH MORE ETHNICALLY DISTINCT THAN SAY BOSNIANS AND SERBS TWO FURTHER OBSERVATIONS ARE IN ORDER HERE FIRST THE MODERN IRISH HAVE THEIR OWN ENGLISH NORMAN AND NORSE STRAINS AMONG OTHER THINGS NORSE VIKINGS FOUNDED DUBLIN SECOND THE ACTUAL GENETIC DIFFERENCES BETWEEN THE GREAT GERMANIC AND CELTIC BRANCHES OF THE INDO EUROPEAN FAMILY MAY BE QUITE SMALL BANGKOK BANK P. C. L. THAILAND'S LARGEST BANK SAID ITS PRESIDENT VICHIT SURAPHONGCHAI IS TAKING A SIX MONTH LEAVE OF ABSENCE TO SEEK TREATMENT FOR AN UNDISCLOSED ILLNESS THE BANK'S ANNOUNCEMENT ADDED TO CONFUSING SIGNALS ABOUT THE FORTY EIGHT YEAR OLD DOCTOR VICHIT WHO TOOK THE HELM FOURTEEN MONTHS AGO PRIOR TO THE BANK'S ANNOUNCEMENT DOCTOR VICHIT'S OFFICE SAID HE HAD RESIGNED AND THE STOCK EXCHANGE OF THAILAND REPORTED THAT BANGKOK BANK HAD TOLD IT THE SAME BANK OFFICIALS WOULDN'T EXPLAIN THE DISCREPANCY AND DOCTOR VICHIT COULDN'T BE REACHED FOR COMMENT ALTHOUGH ASSOCIATES OF DOCTOR VICHIT SAY HE DOESN'T APPEAR TO BE WELL MANY ANALYSTS THINK THE TIMING OF THE ANNOUNCEMENT REFLECTS GROWING FRICTION BETWEEN DOCTOR VICHIT AND THE SOPHONPANICH FAMILY WHICH HAS RUN THE BANK SINCE IT WAS FOUNDED IN NINETEEN FORTY FOUR HOWEVER DOCTOR VICHIT'S DEPARTURE WHETHER TEMPORARY OR PERMANENT ISN'T EXPECTED TO HAVE A GREAT IMPACT ON THE BANK'S OPERATIONS ANALYSTS SAID THE BANK SAID OTHER SENIOR EXECUTIVES WILL FILL IN FOR DOCTOR VICHIT DURING HIS ABSENCE COOPER INDUSTRIES INCORPORATED CHAIRMAN ROBERT CIZIK SAID NINETEEN NINETY FOUR NET INCOME COULD PLUNGE AS MUCH AS TWENTY FIVE PERCENT BECAUSE OF A SLUMP IN OIL INDUSTRY EXPLORATION FOR WHICH COOPER SELLS EQUIPMENT THE DISCLOSURE SENT THE COMPANY'S STOCK DOWN NINETEEN PERCENT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE EVEN AS IT ANNOUNCED A SIX POINT ONE PERCENT RISE IN FOURTH QUARTER PROFIT THE PLUNGE IN THE STOCK ERASED MORE THAN ONE POINT ONE BILLION DOLLARS OF COOPER'S MARKET CAPITALIZATION COOPER A LARGE MAKER OF A HOST OF PRODUCTS FOR INDUSTRIES RANGING FROM ELECTRICAL POWER TO AUTOS SAID THE ANTICIPATED DECLINE IN ITS PETROLEUM BUSINESS WILL FAR EXCEED SOME IMPROVEMENT IN OTHER LINES QUOTE WE ANTICIPATE A SIGNIFICANT DECLINE IN EARNINGS QUOTE MR. CIZIK SAID WHICH COULD BE AS STEEP AS TWENTY FIVE PERCENT THE PLUNGE IN CRUDE OIL PRICES TO FIVE YEAR LOWS OF ABOUT FIFTEEN DOLLARS A BARREL WILL DEPRESS DEMAND FOR AN ARRAY OF PRODUCTS COOPER SELLS TO THE OIL EXPLORATION AND PRODUCTION INDUSTRY COOPER SAID AT TWENTY FIVE PERCENT OF NINETEEN NINETY THREE REVENUE COOPER'S PETROLEUM SEGMENT WAS ITS SECOND LARGEST MANY OF THE WORLD'S BIGGEST OIL COMPANIES HAVE SAID THEY INTEND TO KEEP THIS YEAR'S OIL DRILLING BUDGETS AT OR BELOW NINETEEN NINETY THREE LEVELS UNLESS CRUDE PRICES PICK UP MR. CIZIK SAID HE EXPECTS THAT THE DECLINE IN COOPER'S PETROLEUM BUSINESS WILL BE COMPOUNDED BY THE IMPACT OF A NORMAL CYCLICAL DOWNTURN IN NATURAL GAS COMPRESSION PROJECTS INVESTORS REACTED PARTICULARLY HARSHLY TO MR. CIZIK'S NINETEEN NINETY FOUR FORECAST BECAUSE THEY HAD COME TO EXPECT STEADY INCREASES IN RESULTS FROM COOPER AS ONE LINE OF BUSINESS GENERALLY IMPROVED ENOUGH TO OFFSET HARSHER RESULTS ELSEWHERE BUT YESTERDAY COOPER STOCK PLUNGED NINE POINT EIGHT SEVEN FIVE DOLLARS TO FORTY ONE POINT SIX TWO FIVE DOLLARS IN BIG BOARD TRADING MR. CIZIK'S PREDICTION CAME AS THE COMPANY REPORTED THAT NET INCOME FOR THE FOURTH QUARTER INCREASED TO ONE HUNDRED TWO POINT TWO MILLION DOLLARS OR SEVENTY EIGHT CENTS A SHARE FROM NINETY SIX POINT THREE MILLION DOLLARS OR SEVENTY THREE CENTS A SHARE REVENUE SLID TWO POINT THREE PERCENT TO ONE POINT SIX BILLION DOLLARS FROM ONE POINT SIX FOUR BILLION DOLLARS FOR NINETEEN NINETY THREE NET ROSE TO THREE HUNDRED SIXTY SEVEN POINT ONE MILLION DOLLARS OR TWO DOLLARS AND SEVENTY FIVE CENTS A SHARE COMPARED WITH A NINETEEN NINETY TWO LOSS OF TWO HUNDRED TWENTY EIGHT POINT SEVEN MILLION DOLLARS OR TWO DOLLARS AND FORTY EIGHT CENTS A SHARE WHICH INCLUDED A FIVE HUNDRED NINETY MILLION DOLLAR WRITE DOWN TO REFLECT CHANGES IN ACCOUNTING PRINCIPLES WITHOUT THE ACCOUNTING CHANGES COOPER HAD NINETEEN NINETY TWO PROFIT OF THREE HUNDRED SIXTY ONE POINT THREE MILLION DOLLARS OR TWO DOLLARS AND SEVENTY ONE CENTS A SHARE REVENUE IN NINETEEN NINETY THREE ROSE TWO POINT THREE PERCENT TO SIX POINT TWO SEVEN BILLION DOLLARS FROM SIX POINT ONE THREE BILLION DOLLARS THE OIL SEGMENT OF COOPER WAS ALREADY FEELING THE HEAT LAST YEAR WHEN IT SLIPPED FROM THE BIGGEST TO THE SECOND LARGEST PORTION OF THE COMPANY DOWN FROM THIRTY PERCENT OF THE MIX IN NINETEEN NINETY TWO THE PETROLEUM SEGMENT WAS SUPERSEDED BY AUTOMOTIVE PRODUCTS COOPER SAID COOPER SAID BUSINESS SEGMENTS SERVING STRONGER MARKETS SHOWED IMPROVEMENTS IN THE LATEST QUARTER INCLUDING ELECTRICAL PRODUCTS TOOLS AND HARDWARE AND AUTO PRODUCTS THE COMPANY ALSO BENEFITED FROM LOWER INTEREST EXPENSES MR. CIZIK SAID WITH MODEST IMPROVEMENT IN THE NORTH AMERICAN ECONOMY AND NO FURTHER DECLINE IN THE EUROPEAN MARKET OUR ELECTRICAL PRODUCTS AND TOOLS AND HARDWARE SEGMENTS SHOULD CONTINUE TO DO WELL MR. CIZIK SAID THAT COOPER WILL CONTINUE TO PURSUE EXPANSION BY ACQUISITION LAST YEAR THE COMPANY MADE WHAT IT CALLS SMALL COMPLEMENTARY ACQUISITIONS AND WOULD CONTINUE THAT STRATEGY A SPOKESWOMAN SAID THE CLOCK TICKS HUNCHED OVER A DESK I DELICATELY SQUEEZE A TWEEZER AND PLUCK A PIN FROM ITS HOLE ON A WOODEN BOARD MOVING MY HAND SEVERAL INCHES TO THE LEFT I CAREFULLY ALIGN THE PIN ABOVE ANOTHER HOLE AND DROP IT IN SUCCESS FOUR MINUTES LATER I HAVE TRANSFERRED NINETY NINE MORE PINS ALL BUT ONE FLAWLESSLY FEELING PRETTY COCKY I AWAIT THE GOOD NEWS BUT IT DOESN'T COME I DIDN'T TWEEZE THE PINS FAST ENOUGH THAT MIGHT NOT SEEM TO MATTER MUCH EXCEPT FOR ONE FACT THIS IS PART OF A TEST THAT COULD CHANGE MY CAREER MORE PEOPLE UNHAPPY AT WORK BUT UNCERTAIN ABOUT THEIR OPTIONS ARE USING CAREER EXAMS TO GAUGE THEIR STRENGTHS BEFORE THEY TEST THE JOB MARKET QUOTE THERE'S EXPANDING DEMAND FOR ALL KINDS OF VOCATIONAL TESTING QUOTE SAYS JOHN W. JONES SENIOR PSYCHOLOGIST AT LONDON HOUSE A PERSONNELASSESSMENT FIRM IN ROSEMONT ILLINOIS THESE TESTS CAN BE A GOOD FIRST STEP ESPECIALLY FOR THOSE WHO WANT TO DISCOVER UNUSED SKILLS HE ADDS BUT PICKING THE RIGHT EXAM CAN BE TRICKY SOME MATCH YOUR PERSONALITY TRAITS TO CERTAIN PROFESSIONS OTHERS TARGET YOUR INTERESTS INTELLIGENCE OR APTITUDES INDUSTRIAL PSYCHOLOGISTS AND CAREER COUNSELING SERVICES TOUT SUCH TESTS IN THE YELLOW PAGES THEY'RE ALSO OFFERED BY SOME OUTPLACEMENT FIRMS AND COLLEGE PSYCHOLOGY DEPARTMENTS YOU MAY SPEND AS LITTLE AS TWENTY FIVE DOLLARS FOR A STANDARDIZED TEST BUT CONSIDERABLY MORE FOR A PROPRIETARY EXAM WITH CUSTOMIZED INTERPRETATION BECAUSE THE FIELD IS LARGELY UNREGULATED YOU SHOULD CHECK A TESTER'S REFERENCES AND MAKE SURE AN EXAM IS COPYRIGHTED AND BACKED BY RESEARCH EXPERTS ADVISE TYPICALLY THE MORE REPUTABLE THE TESTER THE BETTER THE TEST SAYS BILL JACKSON A VICE PRESIDENT OF DEVELOPMENT DIMENSIONS INTERNATIONAL A PITTSBURGH CONCERN THAT EVALUATES PERSONNEL FOR COMPANIES THE WALL STREET JOURNAL RECENTLY PAID FOR ME TO TEST DRIVE A WELL ESTABLISHED CAREER EXAM GIVEN IN ELEVEN CITIES BY THE NONPROFIT JOHNSON O'CONNOR RESEARCH FOUNDATION THE FOUR HUNDRED EIGHTY DOLLARS TEST SEEKS TO MEASURE APTITUDES NATURAL TALENTS AND SKILLS SUCH AS MUSICAL ABILITY OR THE TENDENCY TO THINK IN CERTAIN WAYS MANY FACTORS CONTRIBUTE TO JOB SATISFACTION OF COURSE BUT YOU'RE MORE LIKELY TO ENJOY WORK THAT ALSO TAKES ADVANTAGE OF YOUR INBORN APTITUDES SAYS THE FOUNDATION WHOSE MAIN OFFICES ARE IN NEW YORK BOSTON AND CHICAGO ABOUT FIVE THOUSAND PEOPLE TAKE JOHNSON O'CONNOR'S TEST EVERY YEAR NEW COLLEGE GRADUATES ONCE PREDOMINATED BUT NOW THE FOUNDATION SAYS MORE TAKERS ARE EDUCATED ADULTS WHO AREN'T HAPPY IN THEIR WORK I HAD LITTLE IDEA WHAT TO EXPECT FROM THE TEST SPREAD OVER TWO MORNINGS I GET THE EASY STUFF FIRST AFTER MOVING PLASTIC CARDS BACK AND FORTH IN FRONT OF MY EYES PRETENDING TO THROW A BASEBALL AND PERFORMING OTHER TRICKS I LEARN I'M RIGHT EYE AND HAND DOMINANT PERFECTLY NORMAL BUT NOT THE SPECIAL CROSS DOMINANCE THAT MANY PROFESSIONAL ATHLETES ENJOY SO MUCH FOR SPORTS NEXT I STARE AT A PICTURE OF TWENTY HOUSEHOLD OBJECTS FOR ABOUT A MINUTE THEN I LOOK AT A BUNCH OF PHOTOS WITH THE SAME OBJECTS REMOVED AND REARRANGED IF I COULD QUICKLY IDENTIFY THAT THE RAZOR AND SHOEHORN TRADED PLACES FOR INSTANCE I WOULD BE OBSERVANT ENOUGH TO DO DETECTIVE OR QUALITY CONTROL WORK I'M NOT THEN COMES THE FOLDED PAPER WITH A HOLE IN IT TEST PREDICT WHERE ALL THE HOLES WILL BE WHEN THE PAPER IS UNFOLDED I CAN'T THAT MEANS I PROBABLY LACK THE THREE D. VISUAL SKILL SO CRITICAL IN GOOD ARCHITECTS ENGINEERS EVEN PLUMBERS AND MY WHEEZING TWEEZING ON THE PIN MOVING TEST SUGGESTS I LACK THE DEXTERITY NEEDED TO BE A SURGEON OR A DENTIST DESPAIR JUST FORTY FIVE MINUTES GONE AND ALREADY I SHOW A DECIDED LACK OF APTITUDES I ENDURE TWENTY SIX EXERCISES DIRECTED BY A TESTER OR AUDIOTAPE VIRTUALLY ALL ARE CLOCKED I ENJOY SOME SUCH AS REASONING TESTS IN WHICH I MUST ARRANGE WORDS INTO IDEAS OTHERS SUCH AS MEMORIZING ENGLISH TRANSLATIONS OF MARTIAN WORDS QUICKLY FLASHED ON A SCREEN ARE TEDIOUS BUT THEN I NEVER WAS VERY GOOD AT THE SKILL THAT DRILL SEEKS TO GAUGE PICKING UP LANGUAGES I UNDERGO ABOUT SEVEN HOURS OF SUCH ACTIVITY INCLUDING A LONG VOCABULARY TEST AND AN INTEREST INVENTORY TO CALIBRATE MY ATTITUDE TOWARD ONE HUNDRED NINETY TWO OCCUPATIONAL TASKS BY THE END I AM EAGER TO ESCAPE FOUR OTHER RECENT TEST TAKERS AGREED THE REGIMEN SEEMED OVERLY LONG NOTABLY NONE WAS TERRIBLY SURPRISED AT THEIR RESULTS DELIVERED BY A FOUNDATION COUNSELOR ALONG WITH POSSIBLE TYPES OF WORK BASED ON THEIR STRENGTHS STILL THEY GENERALLY FOUND THE EXPERIENCE HELPFUL BRUCE G. MAASBACH TOOK IT LAST YEAR AFTER FEELING FRUSTRATED BY HIS INABILITY TO SUSTAIN HIS SALES RECORD AS A REAL ESTATE BROKER THE TEST CONFIRMED MR. MAASBACH'S SKILL FOR SALES WORK BUT CONCLUDED THAT HE MIGHT BE HAPPIER WORKING WITH NUMBERS NOW THE THIRTY EIGHT YEAR OLD NEW YORKER SAYS HE'S QUOTE THRILLED QUOTE AND MORE EFFECTIVE WORKING AS A MORTGAGE BROKER I FOUND OUT WHAT MY GIFTS ARE HE SAYS I FOUND OUT WHAT MY LIMITS ARE MY EDITORS WON'T LIKE THIS BUT I RANKED IN THE DISMAL TENTH PERCENTILE ON DIVERGENT THINKING A BRIEF ESSAY DESIGNED TO MEASURE MY FLOW OF IDEAS A HIGH SCORE SUGGESTS A CAREER IN SALES ADVERTISING TEACHING AND UM JOURNALISM ALSO I ONLY HIT THE EIGHTIETH PERCENTILE ON VOCABULARY HARDLY AN IDEAL SHOWING FOR SOMEONE WHO WORKS WITH WORDS FOR A LIVING WHAT SHOULD I BE INSTEAD I LEARN MY PERSONALITY IS BEST SUITED TO WORKING WITH AND THROUGH OTHERS IN OTHER WORDS THE FOUNDATION SAYS I SHOULD BE THE BOSS BUT THAT'S HARDLY NEWS TO ME SPECTRUM INFORMATION TECHNOLOGIES INCORPORATED HAS BEEN THE SUBJECT OF A SECURITIES AND EXCHANGE COMMISSION PROBE SINCE LAST MAY ACCORDING TO THE COMPANY'S GENERAL COUNSEL THE INVESTIGATION CENTERS ON THE LICENSING AGREEMENTS SIGNED BY SPECTRUM MANHASSET N. Y. WITH NUMEROUS MANUFACTURERS INCLUDING AMERICAN TELEPHONE AND TELEGRAPH COMPANY AND PUBLIC STATEMENTS BY SPECTRUM OFFICIALS ABOUT THE VALUE OF THOSE PACTS SAID SPECTRUM GENERAL COUNSEL CHRISTOPHER P. FRANCO HIS COMMENTS CONTRASTED SHARPLY WITH THOSE MADE EARLIER YESTERDAY BY THE WIRELESS DATA COMPANY'S CHAIRMAN JOHN SCULLEY IN AN INTERVIEW WITH THE WALL STREET JOURNAL MR. SCULLEY'S REMARKS RAN ON THE DOW JONES NEWS SERVICE YESTERDAY SPECTRUM SHARES PLUNGED ONE DOLLAR TO SIX POINT THREE ONE TWO FIVE DOLLARS ON THE NASDAQ STOCK MARKET AFTER A C. N. B. C. REPORT BY COLUMNIST DAN DORFMAN OF RUMORS THAT MR. SCULLEY WOULD RESIGN AND THAT SPECTRUM WAS THE SUBJECT OF AN S. E. C. INVESTIGATION IN THE INTERVIEW MR. SCULLEY CALLED THE REPORT QUOTE BIZARRE QUOTE THE FORMER APPLE COMPUTER INCORPORATED CHAIRMAN SAID HE HAD NO PLANS TO QUIT HIS JOB AND THAT SPECTRUM WAS NOT THE SUBJECT OF AN S. E. C. INVESTIGATION SOMEBODY GAVE DAN DORFMAN A BUM STEER HE SAID LATER A COMPANY SPOKESMAN REITERATED MR. SCULLEY'S STATEMENTS INSISTING THERE ARE NO PROBES GOING ON AT SPECTRUM THE PROBE STEMS FROM THE WILD RIDE SPECTRUM'S STOCK TOOK LAST SPRING THE SHARES SKYROCKETED AFTER IT TOUTED A PATENT LICENSING DEAL WITH A. T. AND T. AND SPECTRUM PRESIDENT PETER CASERTA SAID THE DEAL WOULD BE WORTH HUNDREDS OF MILLIONS OF DOLLARS IN NEW BUSINESS THE STOCK LATER PLUNGED WHEN A. T. AND T. DISAVOWED THE PROJECTION MR. FRANCO SAID THERE WAS NO LEGAL REQUIREMENT TO DISCLOSE THE INVESTIGATION SINCE THE S. E. C. INVESTIGATORS HAD DEFINED IT AS A CONFIDENTIAL NON PUBLIC INQUIRY MR. SCULLEY JOINED SPECTRUM IN OCTOBER AFTER LEAVING THE STRUGGLING APPLE SPECTRUM HAS PATENTS THAT COULD APPLY TO A POTENTIALLY HUGE MARKET SUCH AS LAPTOP COMPUTERS AND PERSONAL COMMUNICATORS WHICH USE WIRELESS NETWORKS SPECTRUM IN NOVEMBER AGREED TO SETTLE A CLASS ACTION LAWSUIT FILED BY SHAREHOLDERS WHO CHARGED SPECTRUM WITH INFLATING CLAIMS ABOUT ITS DEAL WITH A. T. AND T. SPECTRUM AGREED TO PAY THE SHAREHOLDERS ONE POINT FIVE MILLION DOLLARS IN CASH AND ISSUE SEVEN HUNDRED FIFTY THOUSAND WARRANTS TO BUY SPECTRUM STOCK AT OR ABOVE MARKET PRICES YOUR DECEMBER TWENTY NINTH EDITORIAL QUOTE THE DIVERSITY STANDARD QUOTE GETS MANY THINGS WRONG YOU STATE OUR ACCREDITING DOCUMENT SETS FORTH A NEW DIVERSITY STANDARD IT DOES NOTHING OF THE KIND RATHER IT IS AN EFFORT BY THE ACCREDITING COMMISSION TO OFFER ASSISTANCE TO MEMBER COLLEGES IN LIVING UP TO STANDARDS TO WHICH THEY HAVE SUBSCRIBED SINCE NINETEEN EIGHTY EIGHT THE DOCUMENT CLEARLY STATES THAT ACCREDITATION WILL NOT BE DENIED ANY COLLEGE THAT IS THOUGHTFULLY CONSIDERING THE MATTER OF DIVERSITY IN THE CONTEXT OF ITS OWN INSTITUTIONAL MISSION AND VALUES THE DOCUMENT ADDRESSES PRINCIPALLY MATTERS OF ETHNIC DIVERSITY ALL THREE OF THESE POINTS HAVE BEEN ABUNDANTLY CLEAR IN ALL DRAFTS OF THE DOCUMENT CIRCULATED IN THE PAST SIX MONTHS YOU ASK YOUR READERS TO BELIEVE THAT THE EFFORTS OF OUR ACCREDITING COMMISSION REGARDING ETHNIC DIVERSITY ARE FOUND WITHIN AN ATMOSPHERE BLIGHTED BY CENSORSHIP SPEECH CODES QUOTA HIRING AND OTHER SYMPTOMS OF POLITICAL CORRECTNESS HARDLY OUR DOCUMENT ON DIVERSITY SPECIFICALLY REMINDS COLLEGES OF THEIR OBLIGATION TO SUPPORT FREEDOM OF INQUIRY AND EXPRESSION THE DOCUMENT DOES SO BY QUOTING THE FOLLOWING LANGUAGE FROM THE EXISTING STANDARDS THOSE WITHIN AN EDUCATIONAL INSTITUTION HAVE AS A FIRST CONCERN KNOWLEDGE EVIDENCE AND TRUTH THIS CONCERN SHOULD NOT BE UNDERMINED BY PARTICULAR JUDGMENTS OF INSTITUTIONAL BENEFACTORS OF PUBLIC OR SOCIAL PRESSURE GROUPS OR OF RELIGIOUS OR POLITICAL GROUPS SURELY THIS EXCERPT PLACES OUR ACCREDITATION PROCESS SQUARELY ON THE SIDE OF ACADEMIC FREEDOM ANOTHER IMPORTANT MATTER YOU DERIDE AS A SUDDENLY DISCOVERED DOGMA THE IDEA THAT DIVERSITY AND EDUCATIONAL QUALITY ARE LINKED SURELY THIS IS NOT DOGMA OR EVIDENCE OF QUOTE ZEALOTRY QUOTE AS YOU SUGGEST BUT A COMPELLING CONDITION OF AMERICA TODAY AND TOMORROW GIVEN OUR ETHNICALLY DIVERSE SOCIETY WHAT WOULD YOU SAY OF THE QUALITY OF AN EDUCATION THAT PROVIDED NO FAMILIARITY WITH THE WAYS AND HISTORIES OF THE GROUPS TO WHICH FELLOW STUDENTS CITIZENS AND CO WORKERS WILL BELONG WE SAY THAT WOULD REPRESENT A SERIOUS GAP IN EDUCATIONAL QUALITY AND ULTIMATELY COMPROMISE AMERICA'S FUTURE R. C. MARK BAKER FORTY SEVEN YEARS OLD WAS NAMED VICE PRESIDENT OF INTERNATIONAL STRATEGY AND PLANNING AT THIS TELECOMMUNICATIONS COMPANY MR. BAKER PREVIOUSLY WAS A SENIOR EXECUTIVE FOR GLOBAL CUSTOMERS AT LONDON BASED BRITISH TELECOMMUNICATIONS P. L. C. AT A. T. AND T. MR. BAKER WILL BE RESPONSIBLE FOR SUPPORTING GLOBALIZATION EFFORTS AND BROADENING INTERNATIONAL COMMUNICATIONS SERVICES VIACOM INTERNATIONAL INCORPORATED SAID IT PLANS TO PLUNGE INTO THE HOMESHOPPING MARKET BY TESTING THE CONCEPT ON M. T. V. AND ITS OTHER CABLE NETWORKS BEGINNING IN APRIL THE M. T. V. NETWORKS UNIT WILL OFFER RECORDED MUSIC C. D.S AND CASSETTES CONCERT TICKETS AND OTHER MUSICRELATED PRODUCTS THE NETWORKS WHICH PROVIDE MUSIC VIDEO PROGRAMMING ALREADY HAVE A HIGH PROFILE AMONG A YOUNG MUSIC ORIENTED AUDIENCE DEPENDING ON THE TEST RESULTS M. T. V. WILL CONSIDER LAUNCHING A STAND ALONE SHOPPING CHANNEL IN THE FIRST QUARTER OF NINETEEN NINETY FIVE M. T. V. NETWORKS SAID IT HAD BEEN WORKING ON THE CONCEPT FOR ABOUT TWO YEARS BUT THE ANNOUNCEMENT FORMALLY MOVES M. T. V. INTO HOME SHOPPING AS ITS PARENT VIACOM INCORPORATED BATTLES HOME SHOPPING GIANT Q. V. C. NETWORK INCORPORATED TO ACQUIRE PARAMOUNT COMMUNICATIONS INCORPORATED SUCH A VENTURE IS LIKELY TO FACE FORMIDIBLE COMPETITION RECENTLY CABLE BROADCASTER TELE COMMUNICATIONS INCORPORATED JOINED WITH GERMAN RECORD COMPANY BERTELSMANN A. G. TO LAUNCH A MUSIC VIDEO SLASH HOMESHOPPING CABLE CHANNEL THAT WILL SELL MUSIC RELATED MERCHANDISE SUCH AS T. SHIRTS AND CONCERT TICKETS AS WELL TAPES AND C. D.S NOT AVAILABLE IN STORES THE VENTURE IS EXPECTED TO BE LAUNCHED IN MID NINETEEN NINETY FOUR QUOTE THEY HAVE A SIX MONTH HEAD START QUOTE CONCEDED TOM FRESTON CHAIRMAN AND CHIEF EXECUTIVE OF M. T. V. NETWORKS QUOTE BUT WE DON'T SEE THIS AS THE END OF THE WORLD QUOTE HE SAID M. T. V. EXPECTS TO SPEND A SIGNIFICANT AMOUNT TO LAUNCH ITS HOME SHOPPING SERVICE BUT SAID IT WAS LESS THAN ONE HUNDRED MILLION DOLLARS HE SAID M. T. V. HAS HAD DISCUSSIONS WITH SIX MAJOR RECORD LABELS THAT EXPRESSED ENTHUSIASM BUT NO FIRM COMMITMENT ABOUT SELLING THEIR PRODUCTS THERE COULD BE COMPETITION FROM OTHER SOURCES SEVERAL RECORD COMPANIES LED BY SONY CORPORATION'S SONY MUSIC AND TIME WARNER INCORPORATED'S WARNER MUSIC GROUP ARE DISCUSSING FORMING WORLD WIDE TELEVISED MUSIC VIDEO SERVICES THAT COULD BE THE FIRST SIGNIFICANT COMPETITOR TO M. T. V. NETWORKS AN INCREASING PERCENTAGE OF RECORDED MUSIC PURCHASES ARE BEING MADE DIRECTLY FROM THE HOME THROUGH RECORD CLUBS AND MAIL ORDER SALES MR. FRESTON SAID WE WILL BE WELL POSITIONED TO TAKE ADVANTAGE OF THIS TREND HE ADDED WE WILL BE AN ADJUNCT TO RECORD STORES AND OTHER RETAILERS NOT COMPETITIVE WITH THEM WE'LL BE INCREASING THE SIZE OF THE PIE BY BRINGING MORE PEOPLE TO MUSIC AND OTHER PRODUCTS QUOTE M. T. V. SAID CABLE OPERATORS WILL PARTICIPATE IN REVENUE GENERATED BY THE SHOPPING PROGRAMMING SUCH A SHOPPING SERVICE RAISES THE PROSPECT OF A CLASH OVER RECORD COMPANY RELATIONSHIPS WITH WELL ESTABLISHED MUSIC RETAILERS AND SELLERS OF MUSIC RELATED MERCHANDISE WE HAVE TALKED TO THE RECORD COMPANIES AND THEY DON'T SEE THEIR RETAIL BUSINESSES BEING CANNIBALIZED MR. FRESTON SAID M. T. V. NETWORKS OWNS AND OPERATES THREE TELEVISION PROGRAMMING NETWORKS M. T. V. MUSIC TELEVISION V. H. ONE AND NICKELODEON SLASH NICK AT NITE EMULEX CORPORATION COSTA MESA CALIFORNIA A MAKER OF COMPUTER NETWORK COMMUNICATIONS EQUIPMENT SAID IT WILL HOLD A SPECIAL SHAREHOLDERS MEETING FEBRUARY TWENTY FOURTH TO APPROVE TERMS OF A DISTRIBUTION OF ALL THE STOCK IN ITS QLOGIC CORPORATION UNIT EMULEX SAID HOLDERS OF RECORD JANUARY FOURTEENTH WILL BE ASKED TO APPROVE A ONE FOR TWO REVERSE SPLIT IN EMULEX STOCK RESULTING IN ABOUT FIVE POINT FIVE MILLION EMULEX SHARES OUTSTANDING AND THEN A ONE FOR ONE DISTRIBUTION OF QLOGIC STOCK TO EMULEX HOLDERS EMULEX SAID A RECORD DATE FOR THE DISTRIBUTION HASN'T BEEN FIXED SHARES OF QLOGIC WHICH SELLS A LINE OF SMALL COMPUTER INTERFACE DEVICES ARE EXPECTED TO TRADE ON THE NASDAQ NATIONAL MARKET SYSTEM EMULEX SAID THOMAS J. HOEPPNER EXECUTIVE VICE PRESIDENT OPERATIONS AND TECHNOLOGY AT GENERAL FOODS U. S. A. WAS NAMED A SENIOR VICE PRESIDENT OF THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COMPANIES AND PRESIDENT OF CUSTOMER SUPPORT SERVICES MR. HOEPPNER FIFTY TWO YEARS OLD SUCCEEDS EDWARD W. SMEDS FIFTY SEVEN WHO IS RETIRING RICHARD E. BAILEY FORTY SEVEN EXECUTIVE VICE PRESIDENT OF OPERATIONS AT KRAFT U. S. A. WILL ADD THE TITLE OF SENIOR VICE PRESIDENT MANUFACTURING AT KRAFT GENERAL FOODS STANDARD AND POOR'S CORPORATION SAID IT WILL ESTABLISH TWO NEW INDUSTRY GROUPS WITHIN ITS S. AND P. FIVE HUNDRED INDEX PHOTOGRAPHY SLASH IMAGING AND SPECIALTY PAPERS EFFECTIVE AFTER THE CLOSE OF TRADING TODAY EASTMAN KODAK COMPANY AND POLAROID CORPORATION JOINED THE PHOTOGRAPHY SLASH IMAGING GROUP AND DELUXE CORPORATION R. R. DONNELLEY AND SONS COMPANY AND JOHN H. HARLAND COMPANY JOINED THE SPECIALTY PAPERS GROUP THE S. AND P. FIVE HUNDRED CONTAINS EIGHTY NINE INDUSTRY GROUPS ALL FIVE COMPANIES PREVIOUSLY HAD BEEN CLASSIFIED AS MISCELLANEOUS EXAR CORPORATION EXPECTS SALES FOR ITS CURRENT QUARTER TO BE ABOUT TEN PERCENT BELOW SALES IN ITS FISCAL THIRD QUARTER IN WHICH THE COMPANY SAID IT EARNED FOUR MILLION DOLLARS ON SALES OF THIRTY EIGHT POINT FOUR MILLION DOLLARS THE MAKER OF INTEGRATED CIRCUITS SAID IN SAN JOSE CALIFORNIA THAT ITS ORDERS HAVE BEEN STRONG BUT THAT CERTAIN OF ITS PRODUCTS ARE IN SHORT SUPPLY THE COMPANY WHICH SAID IT WAS STILL TOO EARLY TO MAKE QUOTE ANY SPECIFIC PREDICTION QUOTE FOR ITS MARCH RESULTS ALSO BLAMED QUOTE CONTINUED WEAKNESS QUOTE IN JAPANESE DEMAND IN ITS FOURTH QUARTER ENDED MARCH THIRTY FIRST NINETEEN NINETY THREE EXAR EARNED THREE POINT SEVEN MILLION DOLLARS ON SALES OF THIRTY SEVEN POINT FIVE MILLION DOLLARS SEPARATELY EXAR REPURCHASED ONE POINT FIVE MILLION OF ITS OWN SHARES FROM ROHM U. S. A. INCORPORATED FOR TWENTY THREE POINT SIX MILLION DOLLARS THE SALE REDUCES ROHM'S HOLDINGS IN EXAR TO SLIGHTLY LESS THAN FIVE PERCENT FROM TWENTY POINT NINE PERCENT EXAR ALSO SAID ITS BOARD HAD AUTHORIZED THE OPEN MARKET REPURCHASE OF AS MANY AS THREE HUNDRED THOUSAND SHARES OF ITS COMMON STOCK DURING NINETEEN NINETY FOUR A TRIPLE BONUS OF RISING NATURAL GAS PRICES STABLE INTEREST RATES AND RECENT DEREGULATORY MOVES IS SPAWNING A FLURRY OF INSIDER BUYING AMONG NATURAL GAS UTILITY EXECUTIVES AND DIRECTORS INSIDERS AT NINE MAJOR NATURAL GAS UTILITIES HAVE BEEN SNAPPING UP SHARES IN THEIR RESPECTIVE COMPANIES SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW THOSE COMPANIES ARE SOUTHERN UNION COMPANY PENNSYLVANIA ENTERPRISES COASTAL CORPORATION NATIONAL GAS AND OIL COMPANY WESTERN GAS RESOURCES INCORPORATED ARKLA INCORPORATED ENRON CORPORATION SONAT INCORPORATED AND SOUTHWEST GAS CORPORATION WHILE THE RECENT COLD SNAP MAY CONTINUE TO LIFT NATURAL GAS PRICES AND PROVIDE A SHORT TERM BOOST FOR SEVERAL GAS UTILITIES INDUSTRY INSIDERS HAD LONG DETECTED GROUNDS FOR OPTIMISM BEFORE THE FIERCE WEATHER SET IN INDEED THEY SAW A FOURTH QUARTER MARKET SELL OFF AS AN OPPORTUNITY TO BUY A MOVE THAT NOW APPEARS PRESCIENT IN NEW YORK MERCANTILE EXCHANGE TRADING THE FUTURES PRICE OF NATURAL GAS FOR MARCH DELIVERY WAS TWO POINT TWO FOUR SIX DOLLARS A MILLION BRITISH THERMAL UNITS DOWN THREE POINT SEVEN CENTS PRIOR TO THE COLD WEATHER OUTSIDE INVESTORS HAD BEEN WARY OF SEVERAL POTENTIALLY DAUNTING PROBLEMS FACING THE GAS UTILITIES NONE OF WHICH MATERIALIZED ONE CONCERN WAS THE POSSIBILITY THAT THE FEDERAL RESERVE BOARD MIGHT RAISE INTEREST RATES WHICH WOULD DAMAGE THE RATE SENSITIVE INDUSTRY BUT A BIGGER THREAT LOOMED WHEN STANDARD AND POOR'S CORPORATION CHANGED ITS RATINGS GUIDELINES FOR ELECTRIC UTILITIES CITING CONCERNS ABOUT THE POTENTIALLY DEPRESSIVE EFFECTS ON PROFIT MARGINS FROM ACCELERATING DEREGULATION SEVERAL EQUITY ANALYSTS ALSO EXPRESSED CONCERN ABOUT INCREASED COMPETITION AMONG ELECTRIC UTILITIES SENDING THE GROUP INTO A TAILSPIN LAST FALL INSIDERS THOUGH WEREN'T PUT OFF BY FEARS OF RATING CHANGES THEY KNEW THAT THEIR COMPANIES WERE MUCH FURTHER ALONG THAN THE ELECTRIC UTILITIES IN TERMS OF DEREGULATION QUOTE THE NATURAL GAS INDUSTRY HAD BEEN THROUGH A DIFFICULT PERIOD QUOTE OF ADJUSTMENT SAID FOSTER CORWITH A GAS ANALYST AT DEAN WITTER NOW THEY'RE IN A GOOD POSITION TO STABILIZE PROFIT AND GROW AT SOUTHERN UNION IN AUSTIN TEXAS OUTSIDE DIRECTOR AARON FLEISCHMAN MORE THAN DOUBLED HIS STAKE BY SNAPPING UP SIXTEEN THOUSAND FOUR HUNDRED SHARES IN THE UTILITY AT ROUGHLY TWENTY SIX DOLLARS A SHARE DURING THE FINAL WEEK OF DECEMBER THE STOCK CLOSED YESTERDAY AT THIRTY ONE POINT ONE TWO FIVE DOLLARS DOWN TWENTY FIVE CENTS IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE MR. FLEISCHMAN'S OPEN MARKET PURCHASES CAME AFTER HE AND EIGHT OTHER DIRECTORS AT THE COMPANY PURCHASED ROUGHLY THIRTEEN MILLION FOUR HUNDRED FIFTY THOUSAND DOLLARS IN COMPANY STOCK IN A RIGHTS OFFERING THAT SUBSCRIPTION RIGHTS OFFERING WAS MEANT TO PARTIALLY FINANCE THE COMPANY'S EARLIER ANNOUNCED ACQUISITION OF GAS DISTRIBUTION PROPERTIES IN WESTERN MISSOURI OWNED BY WESTERN RESOURCES INCORPORATED THAT DEAL WHICH WILL EXPAND SOUTHERN UNION'S CLIENT BASE BY FOUR HUNDRED SIXTY THOUSAND CUSTOMERS IS EXPECTED TO CLOSE ON MONDAY I'M A BELIEVER IN THE GAS UTILITY BUSINESS BUT I'M ESPECIALLY CONFIDENT IN THE MANAGEMENT OF SOUTHERN UNION AS IT MOVES TO DOUBLE THE SIZE OF ITS BUSINESS THROUGH THE MISSOURI ACQUISITION SAID MR. FLEISCHMAN SENIOR PARTNER IN FLEISCHMAN AND WALSH A WASHINGTON BASED LAW FIRM SPECIALIZING IN REPRESENTING REGULATED BUSINESSES SAYS ALVIN SILBER AN ENERGY INDUSTRY ANALYST WITH BROKER HERZOG HEINE GEDULD IN NEW YORK SOUTHERN UNION NOW ONE OF THE TOP FIVE LOW COST GAS UTILITIES HAS A LONG TERM STRATEGY OF ACQUIRING DEPRESSED SUN BELT UTILITIES AT A DISCOUNT WHAT'S MORE HE SAYS THEY'RE NOT ONLY BEING HARD NOSED ABOUT OPERATING EFFICIENCIES BUT THEY SEE LONG TERM OPPORTUNITIES IN THE GAS UTILITY SECTOR BASED ON THE INCREASING USE OF NATURAL GAS IN SUCH NONCONVENTIONAL AREAS AS TRANSPORTATION AND AIR CONDITIONING MR. SILBER NOTES FOR EXAMPLE THAT THE NINETEEN NINETY CLEAN AIR ACT MANDATES THAT THE FEDERAL GOVERNMENT'S AUTO FLEET CONVERT TO NATURAL GAS FUEL USE OVER TIME SUCH REGULATIONS HE SAYS WILL CREATE TWELVE MONTH A YEAR AREAS OF CONSUMPTION FOR NATURAL GAS PROVIDERS LIKE SOUTHERN AMONG THE MAJOR GAS UTILITIES SHOWING SIGNIFICANT INSIDER BUYING ACTIVITY IN THE FOURTH QUARTER S. E. C. DATA INDICATE THAT EIGHT INSIDERS AT PENNSYLVANIA ENTERPRISES BOUGHT A COMBINED TWENTY FOUR THOUSAND SIX HUNDRED TWENTY FIVE SHARES AT AN AVERAGE OF TWENTY EIGHT DOLLARS EACH YESTERDAY THE STOCK CLOSED AT THIRTY DOLLARS AND TWENTY FIVE CENTS DOWN SEVENTY FIVE CENTS ON THE NASDAQ STOCK MARKET QUOTE A NUMBER OF OUR DIRECTORS AND OFFICERS HAVE BEEN BUYING STOCK BECAUSE THEY BELIEVE THAT IT REPRESENTS A GOOD VALUE QUOTE SAYS THOMAS WARD COMPANY VICE PRESIDENT AND SECRETARY THE GAS BUSINESS HAS ALWAYS BEEN A SOLID CONTRIBUTOR TO OUR BOTTOM LINE AND WE EXPECT THAT BUSINESS TO CONTINUE TO GROW STEADILY HE NOTES AS WELL THAT INSIDERS ARE BUYING COMPANY STOCK ON IMPROVED WATER UTILITY OPERATIONS AT THE WILKES BARRE PENNSYLVANIA COMPANY S. E. C. DATA ALSO INDICATE THAT TWO INSIDERS AT ARKLA BOUGHT TWO THOUSAND FIVE HUNDRED SHARES AT AROUND SEVEN DOLLARS AND NINETY CENTS TWO AT NATIONAL GAS AND OIL ACQUIRED ELEVEN THOUSAND FIVE HUNDRED TWENTY NINE SHARES AT SIXTEEN DOLLARS TWO AT WESTERN GAS RESOURCES PURCHASED ONE THOUSAND EIGHT HUNDRED SHARES AT THIRTY ONE DOLLARS AND FIFTY CENTS ONE AT ENRON BOUGHT THIRTEEN THOUSAND FOUR HUNDRED THIRTY SEVEN SHARES AT TWENTY NINE DOLLARS ONE AT SONAT ACQUIRED TEN THOUSAND AT TWENTY SEVEN DOLLARS ONE AT COASTAL SNAPPED UP FOUR THOUSAND SHARES AT TWENTY SIX DOLLARS AND THIRTY EIGHT CENTS AND ONE AT SOUTHWEST GAS GRABBED TWO THOUSAND SHARES AT SIXTEEN DOLLARS CONTINENTAL AIRLINES AND AIR FRANCE HAVE POSTPONED IMPLEMENTING A MARKETING AGREEMENT WHOSE AIM IS TO BOOST TRAFFIC FOR BOTH IN THE COMPETITIVE TRANS ATLANTIC MARKET THE DELAY IN THE AGREEMENT WHICH WAS SIGNED LAST JULY STEMS FROM AIR FRANCE'S CHANGE IN MANAGEMENT LATE LAST YEAR IN A NEWS RELEASE AIR FRANCE SAID ITS NEW MANAGEMENT NEEDS MORE TIME TO ASSESS ITS OPERATIONS AS WELL AS RELATIONSHIPS WITH OTHER CARRIERS THE AGREEMENT DIDN'T INVOLVE ANY EXCHANGE OF EQUITY OR QUOTE CODE SHARING QUOTE WHERE AIRLINES BOTH GIVE THEIR OWN FLIGHT NUMBER TO THE SAME FLIGHT AND JOINTLY MARKET IT IT WOULD HOWEVER INVOLVE COORDINATING THE TWO CARRIERS' SCHEDULES LINKING THEIR FREQUENT FLIER PROGRAMS AND SHARING SPACE AT TERMINALS IN PARIS AND NEWARK N. J. MAKING A DEAL WITH THE I. R. S. GROWS EASIER BUT MAY DEPEND ON WHERE YOU LIVE BUT THE CONGRESSIONAL WATCHDOG AGENCY AND A SEPARATE REPORT BY THE NATIONAL TAXPAYERS UNION ALSO FOUND WIDE VARIATIONS IN ACCEPTANCE RATES AMONG THE I. R. S.'S SIXTY THREE DISTRICTS TAX ADVISERS SAY THIS INDICATES SOME I. R. S. DISTRICTS ARE FAR MORE LENIENT THAN OTHERS I. R. S. OFFICIALS DISAGREE SAYING THE DATA MERELY REFLECT VARIATIONS IN THE QUALITY OF TAXPAYER OFFERS IN DIFFERENT REGIONS BUT THE I. R. S. DOES AGREE MORE DATA ARE NEEDED TO GAUGE THE PROGRAM'S OVERALL EFFECTIVENESS AS A TAX COLLECTION TOOL HOMEOWNERS CHECK THAT FORM SHOWING YOUR MORTGAGE INTEREST PAYMENTS FORM ONE THOUSAND NINETY EIGHT IS USED BY LENDERS TO REPORT HOW MUCH MORTGAGE INTEREST BORROWERS PAY AND HOMEOWNERS TYPICALLY RELY ON THESE FORMS IN CLAIMING MORTGAGE INTEREST DEDUCTIONS BUT THESE FORMS OFTEN CONTAIN SIGNIFICANT ERRORS THAT CAN COST YOU LARGE AMOUNTS OF TIME AGGRAVATION AND MONEY WARNS GINGER M. BRODERICK A CERTIFIED PUBLIC ACCOUNTANT IN NEW YORK CITY QUOTE MAKE SURE YOUR FORM IS CORRECT OR BE PREPARED FOR LENGTHY CORRESPONDENCE WITH THE I. R. S. QUOTE WARNS EDWARD HARRIS A SAN DIEGO TAX ADVISER A COMMON PROBLEM OCCURS WHEN HOMEOWNERS MAIL CHECKS IN LATE DECEMBER FOR PAYMENTS DUE JANUARY FIRST SAYS ROBERT J. GARNER OF ERNST AND YOUNG SOME LENDERS MAY NOT RECEIVE THESE PAYMENTS IN TIME TO INCLUDE ON FORM ONE THOUSAND NINETY EIGHT IF THAT HAPPENS YOU MAY DEDUCT THE AMOUNT YOU ACTUALLY PAID BUT ATTACH A STATEMENT TO YOUR RETURN EXPLAINING THE DIFFERENCE MR. GARNER SAYS MORE TAX DEADBEATS FEEL THE HEAT FROM THEIR OWN COLLEAGUES MORE LAW AND ACCOUNTING FIRMS ARE TRYING TO ENSURE THAT ALL THEIR PARTNERS FILE TAX RETURNS SAYS CARR FERGUSON A LAWYER AT DAVIS POLK AND WARDWELL AND HEAD OF THE AMERICAN BAR ASSOCIATION'S TAX SECTION SOME BIG FIRMS ASK PARTNERS TO SIGN FORMS CONFIRMING THEY HAVE FILED RETURNS OR TO PROVIDE EVIDENCE OF FILING OTHERS ASK FOR A SIGNED CONSENT FORM ALLOWING THE FIRM TO FIND OUT DIRECTLY FROM THE I. R. S. IF A PERSON FILED A RETURN IN RECENT YEARS WHILE SOME FIRMS MAY REGARD THE I. R. S. PROGRAM AS TOO INTRUSIVE EVERY PROFESSIONAL FIRM SHOULD TAKE SOME STEPS TO ASSURE ITSELF ALL PARTNERS ARE CURRENT FILERS SAYS MR. FERGUSON THE I. R. S. SAYS ITS PROGRAM HAS TURNED UP VERY FEW NONFILERS THUS FAR BUT SHIRLEY D. PETERSON A WASHINGTON LAWYER AT STEPTOE AND JOHNSON AND THE FORMER I. R. S. COMMISSIONER SAYS AN I. R. S. STUDY SEVERAL YEARS AGO UNCOVERED A SURPRISINGLY LARGE NUMBER OF PROFESSIONAL PREPARERS WHO HADN'T FILED RETURNS MANY FIRMS REFUSE TO CHECK ON EMPLOYEES FEARING VIOLATING THEIR PRIVACY OR ALIENATING VALUED COLLEAGUES COME CLEAN THERE ARE ABOUT SEVEN POINT FIVE MILLION PEOPLE WHO SHOULD BE FILING TAX RETURNS BUT AREN'T I. R. S. OFFICIALS SAY RESULTS OF THE I. R. S.'S CAMPAIGN TO PERSUADE MORE NONFILERS TO STEP FORWARD WILL BE RELEASED TUESDAY AT A MEETING OF THE I. R. S. COMMISSIONER'S TWENTY FOUR MEMBER ADVISORY GROUP DUELING FORECASTS STATE AND LOCAL GOVERNMENTS WILL ISSUE ONE HUNDRED SEVENTY EIGHT POINT SIX BILLION DOLLARS OF NEW LONG TERM TAX FREE BONDS THIS YEAR PREDICTS THE PUBLIC SECURITIES ASSOCIATION A TRADE GROUP NO IT WILL BE TWO HUNDRED FORTY BILLION DOLLARS SAYS A POLL OF EIGHT HUNDRED THIRTY GOVERNMENT FINANCE DIRECTORS BY MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION SAYS A P. S. A. OFFICIAL WE SURE HOPE WE'RE WRONG A TINY GROUP OF COMPANIES PAID MOST OF NEW YORK CITY'S GENERAL CORPORATE TAXES IN NINETEEN NINETY THE CITY SAYS THE TOP TEN PERCENT OF CORPORATE FILERS REPRESENTED EIGHTY FIVE PERCENT OF THE TOTAL THE TOP ONE PERCENT ACCOUNTED FOR FIFTY SEVEN PERCENT OF THE TOTAL AN I. R. S. CRACKDOWN BEGINS ON LAWYERS WHO WON'T IDENTIFY CERTAIN CLIENTS THE I. R. S. FULFILLING A PLEDGE IT MADE LAST MONTH HAS LAUNCHED A CAMPAIGN TO FORCE MORE LAWYERS TO DISCLOSE THE NAMES OF CLIENTS WHO PAY THEM CASH FEES OF MORE THAN TEN THOUSAND DOLLARS IN ONE TRANSACTION OR IN TWO OR MORE RELATED TRANSACTIONS THE I. R. S. RECENTLY SENT LETTERS TO NUMEROUS LAWYERS IMPOSING HEFTY FINES FOR FAILING TO PROVIDE DETAILED INFORMATION ABOUT CLIENTS ON FORM EIGHT THOUSAND THREE HUNDRED OF THE SEVEN HUNDRED NINETY SIX LAWYERS WHO FILED THIS FORM IN THE FIRST EIGHT MONTHS OF NINETEEN NINETY THREE FOUR HUNDRED SIXTY FIVE FILED INCOMPLETE FORMS THE I. R. S. SAYS FINES CAN RANGE FROM TWENTY FIVE THOUSAND DOLLARS TO ONE HUNDRED THOUSAND DOLLARS FOR EACH TRANSACTION BUT SOME LAWYERS PLAN TO FIGHT BACK THEY SAY REPORTING THIS DATA WOULD VIOLATE LAWYER CLIENT PRIVILEGE THE NATIONAL ASSOCIATION OF CRIMINAL DEFENSE LAWYERS MET RECENTLY WITH I. R. S. AND JUSTICE DEPARTMENT OFFICIALS JOHN HENRY HINGSON THE THIRD AN OREGON LAWYER AND HEAD OF THE CRIMINAL DEFENSE LAWYERS GROUP SAYS A RECENT KANSAS CASE UNDERSCORES THE NEED FOR THE I. R. S. TO RECONSIDER ITS POSITION THE PENALTIES PLACE LAWYERS IN AN IMPOSSIBLE POSITION HE SAYS BUT HINGSON ACKNOWLEDGES WE'RE NOT TOO HOPEFUL OF PERSUADING THE I. R. S. TO CHANGE ITS MIND ANYTIME SOON BRIEFS LENIENCY I. R. S. STYLE THE I. R. S. SAYS CALIFORNIA EARTHQUAKE VICTIMS WHO DIDN'T FILE THEIR ESTIMATED TAXES BY JANUARY EIGHTEENTH ARE ENTITLED TO AN EXTENSION UNTIL FRIDAY BUZZWORDS WASHINGTON LOBBYISTS SEARCH FOR A TAX VEHICLE TRANSLATION A NONCONTROVERSIAL TAX BILL THEY CAN PERSUADE LAWMAKERS TO AMEND STOCKS RETREATED FOR A SECOND STRAIGHT DAY AS WORRISOME TECHNICAL SIGNS INSPIRED MORE PROFIT TAKING ECONOMICALLY SENSITIVE ISSUES WHICH MANAGED TO AVOID THE SELLING MONDAY WERE AMONG THE BIGGEST DECLINERS BETHLEHEM STEEL DROPPED TWO AND ONE EIGHTH TO TWENTY ONE AND FIVE EIGHTHS CATERPILLAR FELL ONE AND FIVE EIGHTHS TO NINETY EIGHT AND FIVE EIGHTHS AND ALLIEDSIGNAL SLIPPED ONE AND ONE EIGHTH TO SEVENTY SEVEN AND SEVEN EIGHTHS THE DOW JONES INDUSTRIAL AVERAGE POSTED ITS BIGGEST LOSS OF THE YEAR SLIDING SEVENTEEN POINT FOUR FIVE OR ZERO POINT FOUR FIVE PERCENT TO THREE THOUSAND EIGHT HUNDRED NINETY FIVE POINT THREE FOUR IT DIPPED BELOW THE THREE THOUSAND NINE HUNDRED MARK FOR THE FIRST TIME SINCE ITS INITIAL MOVE OVER THAT LEVEL FRIDAY MOST BROADER INDEXES FELL SOMEWHAT LESS THAN THE INDUSTRIAL AVERAGE DECLINING ISSUES LED ADVANCERS ONE THOUSAND TWO HUNDRED TWO TO EIGHT HUNDRED EIGHTY THREE ON THE NEW YORK STOCK EXCHANGE VOLUME ON THE EXCHANGE WAS ACTIVE AT ABOUT THREE HUNDRED TWENTY SIX MILLION SHARES UP FROM TWO HUNDRED NINETY SIX POINT NINE MILLION SHARES MONDAY ALTHOUGH THE DOW INDUSTRIALS HAVE SET A SERIES OF RECORDS AND JUMPED ABOUT FOUR PERCENT IN THE YEAR TO DATE MOST BROAD BASED INDEXES ARE UP ONLY ABOUT ONE PERCENT THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX MEANWHILE HAS ONLY SET ONE NEW HIGH THE S. AND P. FIVE HUNDRED LOST ONE POINT OH FIVE OR ZERO POINT TWO TWO PERCENT TO FOUR HUNDRED SEVENTY POINT NINE TWO AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL ZERO POINT SIX TWO OR ZERO POINT TWO FOUR PERCENT TO TWO HUNDRED SIXTY ONE POINT ONE THREE WILLIAM DODGE MARKET STRATEGIST AT DEAN WITTER REYNOLDS SAID SOME INVESTORS WENT BARGAIN HUNTING IN CONSUMER NONDURABLE GROUPS SUCH AS DRUG MAKERS PFIZER ADDED ONE HALF TO SIXTY TWO JOHNSON AND JOHNSON RALLIED ONE HALF TO FORTY AND SEVEN EIGHTHS AND SCHERING PLOUGH ROSE ONE HALF TO SIXTY TWO AND FIVE EIGHTHS MERCK JUMPED ONE TO THIRTY FIVE AND THREE QUARTERS AFTER THE PHARMACEUTICALS GIANT IN WHITEHOUSE STATION N. J. RECORDED FOURTH QUARTER NET INCOME OF FIFTY SIX CENTS A SHARE UP FROM FIFTY THREE CENTS LAST YEAR INTERNATIONAL BUSINESS MACHINES WAS IN THE SPOTLIGHT MUCH OF YESTERDAY AFTER ITS STOCK TUMBLED ON ITS LATE MORNING EARNINGS RELEASE BIG BLUE'S SHARES SKIDDED AS LOW AS FIFTY FIVE AND THREE EIGHTHS BEFORE RECOVERING LATE IN THE DAY TO FINISH AT FIFTY EIGHT AND ONE QUARTER OFF JUST THREE EIGHTHS AS EXPECTED THE TROUBLED ARMONK N. Y. COMPUTER MAKER POSTED ITS FIRST QUARTERLY PROFIT IN MORE THAN A YEAR BUT INVESTORS WERE INITIALLY CONCERNED ABOUT LOWER THAN EXPECTED REVENUE IN THE PERIOD THEY WERE REASSURED LATER IN THE DAY WHEN I. B. M. SAID IT LIKELY WILL STAY OUT OF THE RED IN THE FIRST QUARTER ELSEWHERE COOPER INDUSTRIES PLUNGED NINE AND SEVEN EIGHTHS OR NINETEEN PERCENT TO FORTY ONE AND FIVE EIGHTHS THE COMPANY REPORTED FOURTH QUARTER EARNINGS OF SEVENTY EIGHT CENTS A SHARE UP FROM SEVENTY THREE CENTS A SHARE LAST YEAR BUT BELOW THE EIGHTY ONE CENTS EXPECTED BY ANALYSTS SURVEYED BY I. B. E. S. THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM CONSORTIUM GRUPO DINA SKIDDED SIX AND THREE EIGHTHS OR TWENTY ONE PERCENT TO TWENTY THREE AND SEVEN EIGHTHS AFTER THE MEXICAN TRUCK MAKER SAID ITS EARNINGS FELL TO TWENTY FOUR POINT SEVEN MILLION PESOS EIGHT MILLION DOLLARS IN THE FOURTH QUARTER FROM EIGHTY FIVE MILLION PESOS A YEAR AGO IT SAID TRUCK SALES FELL TEN PERCENT FOR ALL OF NINETEEN NINETY THREE AMERICAN EXPRESS ADDED ONE AND ONE QUARTER TO THIRTY TWO AND THREE QUARTERS THE NEW YORK FINANCIAL SERVICES COMPANY LATE MONDAY REPORTED FOURTH QUARTER EARNINGS OF SEVENTY EIGHT CENTS A SHARE UP FROM FIFTEEN CENTS A SHARE A YEAR EARLIER AND RELEASED DETAILS OF ITS LONG ANTICIPATED PLAN TO SPIN OFF ITS LEHMAN BROTHERS UNIT DEAN WITTER DISCOVER LOST FIVE EIGHTHS TO THIRTY SEVEN AND THREE QUARTERS THE NEW YORK BROKERAGE AND CREDIT CARD FIRM EARNED EIGHTY ONE CENTS A SHARE IN THE FOURTH QUARTER UP FROM FIFTY ONE CENTS A SHARE A YEAR AGO BUT JUST BELOW THE EIGHTY TWO CENTS MEAN ESTIMATE OF ANALYSTS SURVEYED BY I. B. E. S. AIRLINE STOCKS SLIPPED AS MAJOR CARRIERS SAID THEY WILL MATCH FARE CUTS INITIATED BY TRANS WORLD AIRLINES A. M. R. THE PARENT OF AMERICAN AIRLINES DROPPED ONE AND ONE EIGHTH TO SIXTY EIGHT AND THREE EIGHTHS DELTA AIR LINES LOST ONE TO FIFTY THREE AND SEVEN EIGHTHS AND SOUTHWEST AIRLINES DECLINED SEVEN EIGHTHS TO THIRTY SIX AND ONE EIGHTH SPECTRUM INFORMATION SKIDDED ONE TO SIX AND FIVE SIXTEENTHS ON THE NASDAQ STOCK MARKET AFTER C. N. B. C. CABLE TELEVISION REPORTED RUMORS THAT FORMER APPLE COMPUTER CHIEF EXECUTIVE OFFICER JOHN SCULLEY WAS RESIGNING FROM THE TOP POSITIONS AT SPECTRUM MANHASSET N. Y. AND THAT THE COMPANY WAS THE SUBJECT OF A SECURITIES AND EXCHANGE COMMISSION INVESTIGATION MR. SCULLEY DENIED BOTH RUMORS BUT THE COMPANY SAID LAST NIGHT THAT IT WAS IN FACT THE SUBJECT OF AN S. E. C. PROBE CENTERING ON THE VALUE OF ITS LICENSING AGREEMENTS CHEVRON WAS OFF ONE EIGHTH TO NINETY TWO AND ONE HALF MOBIL EASED THREE EIGHTHS TO SEVENTY NINE AND SEVEN EIGHTHS AND EXXON ADDED ONE EIGHTH TO SIXTY SIX AND ONE QUARTER AFTER EACH REPORTED IMPROVED EARNINGS FROM OPERATIONS BUT OILFIELD SERVICE STOCKS TUMBLED BAKER HUGHES LOST ONE AND ONE QUARTER TO TWENTY AND ONE QUARTER SCHLUMBERGER DROPPED ONE AND THREE EIGHTHS TO FIFTY SEVEN AND ONE QUARTER AND HALLIBURTON SLIPPED ONE AND THREE EIGHTHS TO THIRTY ONE AND FIVE EIGHTHS ON NASDAQ AMERICAN DEPOSITARY RECEIPTS OF L. M. ERICSSON A SWEDISH TELECOMMUNICATIONS COMPANY LOST TWO AND ONE QUARTER TO FORTY THREE AND THREE QUARTERS AFTER GOLDMAN SACHS DOWNGRADED THE ISSUE TO QUOTE MARKET UNDERPERFORMER QUOTE FROM QUOTE MARKET PERFORMER QUOTE CHEYENNE SOFTWARE CLIMBED ONE AND ONE EIGHTH TO THIRTY THREE AND THREE EIGHTHS ON THE AMEX THE COMPANY IN ROSLYN N. Y. REPORTED EARNINGS OF THIRTY THREE CENTS A SHARE FOR THE SECOND QUARTER ENDED DECEMBER THIRTY FIRST UP FROM SEVENTEEN CENTS A SHARE A YEAR EARLIER ECONOMICALLY SENSITIVE STOCKS HAVE PROVIDED MUCH OF THE FUEL FOR THE ROCKETING DOW INDUSTRIALS THAT MARKET SECTOR FINALLY LURED PROFIT TAKERS YESTERDAY RICKY HARRINGTON A TECHNICAL ANALYST AT INTERSTATE SLASH JOHNSON LANE SAID MANY INVESTORS ARE BECOMING WORRIED ABOUT THE NARROW NATURE OF THE MARKET'S RECENT GAINS ANALYSTS OFTEN VIEW SUCH LIMITED STRENGTH AS A SIGN OF TECHNICAL WEAKNESS PUBLIC SERVICE COMPANY OF COLORADO DENVER SAID IT WILL OFFER ITS EMPLOYEES EARLY RETIREMENT OR VOLUNTARY SEVERANCE PACKAGES AS PART OF AN EFFORT TO CUT ITS WORK FORCE THE COMPANY SAID IT PLANS TO REDUCE THE NUMBER OF EMPLOYEES BY AS MANY AS SEVEN HUNDRED FIFTY P. S. COLORADO HAS ABOUT SIX THOUSAND THREE HUNDRED TWENTY FIVE EMPLOYEES ABOUT SIX HUNDRED EMPLOYEES WILL BE ELIGIBLE TO TAKE THE PACKAGES ON A VOLUNTARY BASIS THE PACKAGES WILL BE AVAILABLE STARTING FEBRUARY FOURTH EMPLOYEES WHO CHOOSE TO TAKE A PACKAGE WILL LEAVE THE COMPANY BY MARCH THIRTY FIRST LATER THIS YEAR PUBLIC SERVICE MAY LOOK AT OFFERING ADDITIONAL PACKAGES AND POSSIBLE LAYOFFS FASTER WAGE INCREASES AND A SLOWDOWN IN BENEFIT COSTS PRODUCED A THREE POINT FIVE PERCENT INCREASE IN AVERAGE WORKER COMPENSATION LAST YEAR MATCHING THE NINETEEN NINETY TWO INCREASE WHICH WAS THE LOWEST IN A DECADE THE LABOR DEPARTMENT FIGURES SUGGEST THAT LABOR COST INFLATION IS WELL UNDER CONTROL INCREASES IN COMPENSATION COSTS HAVE BEEN SLOWING SINCE NINETEEN EIGHTY EIGHT WAGES AND SALARIES MEANTIME ARE FINALLY PICKING UP MOMENTUM AFTER SLOWING IN GROWTH SINCE NINETEEN EIGHTY NINE WAGES ROSE THREE POINT ONE PERCENT LAST YEAR FOLLOWING A RISE OF ONLY TWO POINT SEVEN PERCENT IN NINETEEN NINETY TWO THE NINETEEN NINETY THREE INCREASE WAS STILL SMALL BUT TOPPED LAST YEAR'S INFLATION RATE OF TWO POINT SEVEN PERCENT SERVICE PRODUCING AND NONMANUFACTURING INDUSTRIES SHOWED THE BIGGEST WAGE GAINS QUOTE WE ARE PAST BOTTOM IN HOURLY WAGES QUOTE SAID DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY FINALLY THE FIGURES SUGGEST THAT BENEFIT COSTS DRIVEN MAINLY BY HEALTH CARE ARE CONTINUING TO MODERATE COMPANIES ARE RESISTING BENEFIT INCREASES TO HOLD DOWN COSTS WHILE AT THE SAME TIME THE HEALTH CARE INDUSTRY UNDER FIRE FROM THE CLINTON ADMINISTRATION IS LOOKING FOR WAYS TO CONTROL PRICES BENEFIT COSTS WERE UP FOUR POINT SIX PERCENT FOR THE YEAR AFTER RISING FIVE POINT THREE PERCENT IN NINETEEN NINETY TWO THESE COSTS HAVE SLOWED THE MOST AT THE STATE AND LOCAL GOVERNMENT LEVEL THE RISE IN PRIVATE SECTOR BENEFIT COSTS ALSO SLOWED ANALYSTS SAID YESTERDAY THAT THE NEWS FOR EMPLOYERS IN TERMS OF COMPENSATION COSTS IS PROBABLY ABOUT AS GOOD AS IT IS GOING TO GET THE LABOR MARKET IS LIKELY TO CONTINUE GETTING BETTER AS THE ECONOMY IMPROVES AND THAT WILL HELP KEEP WAGES FIRM ALSO WHILE HEALTH CARE COSTS HAVE BEEN MODERATING ANALYSTS PREDICT THEY WILL CONTINUE TO RISE FASTER THAN THE INFLATION RATE HEALTH CARE IS A VERY LABOR INTENSIVE SECTOR AND IT'S HARD TO HOLD COSTS DOWN SAID WASHINGTON ECONOMIC CONSULTANT JOEL POPKIN COMPENSATION COSTS ROSE ZERO POINT EIGHT PERCENT IN THE FOURTH QUARTER THE SAME AS IN THE THIRD PERIOD WAGES AND SALARIES ROSE ZERO POINT SEVEN PERCENT IN THE FOURTH QUARTER COMPARED WITH A ZERO POINT EIGHT PERCENT RISE IN THE THIRD QUARTER AND BENEFIT COSTS ROSE ONE POINT OH PERCENT FOLLOWING A ZERO POINT NINE PERCENT INCREASE IN THE PREVIOUS QUARTER QUARTERLY FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS EXXON CORPORATION CAPITALIZING ON ITS FARFLUNG INTERNATIONAL OPERATIONS REPORTED A SEVEN POINT ONE PERCENT INCREASE IN FOURTH QUARTER NET INCOME DESPITE SHARPLY LOWER OIL PRICES MEANWHILE NET FOR TWO OTHER OIL GIANTS TUMBLED AS MOBIL CORPORATION AND CHEVRON CORPORATION SAW HUGE CHARGES TAKE A BITE OUT OF THEIR BOTTOM LINES PROFIT AT MOBIL FELL THIRTY TWO PERCENT AT CHEVRON SEVENTY THREE PERCENT EXXON AND MOBIL BOTH POSTED OPERATING PROFIT THAT WAS AHEAD OF ANALYSTS' EXPECTATIONS GIVEN THE HAVOC CAUSED BY THE RECENT OIL PRICE DECLINE QUOTE EARNINGS FROM THEIR REFINING AND MARKETING BUSINESSES WERE STRONGER THAN WE THOUGHT THEY WOULD BE QUOTE SAID PAUL MLOTOK OIL ANALYST FOR MORGAN STANLEY AND COMPANY IN NEW YORK MR. MLOTOK SAID THAT AN AGGRESSIVE COST CUTTING PROGRAM AT MOBIL HELPED TO PROP UP ITS REFINING AND MARKETING OR DOWNSTREAM BUSINESS WHILE EXXON'S DIVERSIFICATION OVERSEAS IN THAT SECTOR PROVIDED SUPPORT CHEVRON'S EARNINGS MET MARKET EXPECTATIONS WITH ITS DOWNSTREAM BUSINESS MAKING A LACKLUSTER SHOWING EVEN A STRONG PERFORMANCE FROM THE DOWNSTREAM SECTOR OF CHEVRON'S PIECE OF THE CALTEX OPERATION IT SHARES WITH TEXACO INCORPORATED IN THE FAR EAST DIDN'T PROVIDE ENOUGH POWER TO OVERRIDE THE EFFECTS OF LOWER OIL PRICES AND MUCH OF CHEVRON'S REFINING AND MARKETING OPERATIONS IN THE U. S. IS LOCATED ON THE WEST COAST A LOCALE STILL BEING PLAGUED BY A PARTICULARLY WEAK ECONOMY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY EXXON STOCK ROSE TWELVE POINT FIVE CENTS OR ZERO POINT TWO PERCENT TO CLOSE AT SIXTY SIX DOLLARS AND TWENTY FIVE CENTS A SHARE BUT MOBIL SHARES FELL THIRTY SEVEN POINT FIVE CENTS OR ZERO POINT FIVE PERCENT TO CLOSE AT SEVENTY NINE POINT EIGHT SEVEN FIVE DOLLARS AND CHEVRON STOCK FELL TWELVE POINT FIVE CENTS OR ZERO POINT ONE PERCENT TO CLOSE AT NINETY TWO DOLLARS AND FIFTY CENTS A SHARE EXXON'S REVENUE IN THE QUARTER FELL NINE POINT SIX PERCENT TO TWENTY SEVEN POINT EIGHT FOUR BILLION DOLLARS FROM THIRTY POINT SEVEN NINE BILLION DOLLARS ALL OF EXXON'S BUSINESSES MADE A STRONG SHOWING COMPARED WITH OTHER OIL COMPANIES ANALYSTS SAID ACCORDING TO CHAIRMAN LEE R. RAYMOND NET INCOME FOR THE FOURTH QUARTER WAS EXXON'S HIGHEST QUARTERLY EARNINGS SINCE THE FIRST QUARTER OF NINETEEN NINETY ONE IN EXXON'S CASE THE DECLINE IN OIL PRICES WAS PARTLY OFFSET BY AN INCREASE IN OIL AND GAS PRODUCTION LARGELY THROUGH THE STARTUP OF SEVERAL OIL AND GAS PROJECTS IN ADDITION REFINING AND MARKETING EARNINGS FOR THE QUARTER JUMPED BY MORE THAN SIXTY PERCENT OVER THE SAME PERIOD LAST YEAR AS SALES AND PROFIT MARGINS INCREASED THE COMPANY CLAIMS THAT LOWER COSTS FOR CRUDE THE RAW MATERIAL FROM WHICH OIL PRODUCTS ARE MADE HELPED TO OVERCOME THE DECLINE IN PRODUCT PRICES PROFIT FROM THE COMPANY'S EXPLORATION AND PRODUCTION BUSINESS DECLINED ONLY SLIGHTLY PROFIT FROM THE CHEMICAL SECTOR WHICH FOR YEARS HAS BEEN A WEAK AREA OF THE PETROLEUM BUSINESS FOR THE ENTIRE INDUSTRY MORE THAN DOUBLED TO ONE HUNDRED THIRTY THREE MILLION DOLLARS SEPARATELY EXXON ANNOUNCED YESTERDAY THAT IT HAS TAKEN ANOTHER STEP TOWARD GETTING A HUGE NATURAL GAS PROJECT IN VENEZUELA OFF THE GROUND EXXON SAID IT HAD SIGNED AN AGREEMENT TO SET UP A COMPANY TO LOOK INTO THE VIABILITY OF THE GIANT CRISTOBAL COLON PROJECT WHICH HAS BEEN IN THE WORKS FOR SEVERAL YEARS AN INFORMAL AGREEMENT HAD BEEN REACHED EARLY LAST YEAR THE TRANSACTION INCLUDES EXXON MITSUBISHI CORPORATION AND UNITS OF THE VENEZUELAN OIL COMPANY AND ROYAL DUTCH SLASH SHELL GROUP OF COMPANIES MOBIL'S OPERATING PROFIT IN THE FOURTH QUARTER ROSE THREE POINT FOUR PERCENT TO SIX HUNDRED TWO MILLION DOLLARS CHAIRMAN ALLEN MURRAY ATTRIBUTED THE IMPROVEMENT TO A STRONG PERFORMANCE IN THE REFINING AND MARKETING BUSINESS DOWNSTREAM OPERATIONS IN THE U. S. AND FAR EAST WERE ESPECIALLY LUCRATIVE HE SAID ECHOING ANALYSTS' COMMENTS MR. MURRAY ALSO SAID THAT MOBIL'S DOWNSTREAM BUSINESSES WERE STILL BENEFITING FROM AGGRESSIVE COST CUTTING PROGRAMS OF RECENT YEARS HE ALSO SAID THAT CORRALLING COSTS CONTINUES TO BE A PRIORITY AT THE COMPANY DURING THE FOURTH QUARTER MOBIL TOOK A CHARGE OF TWO HUNDRED FIFTY THREE MILLION DOLLARS OF WHICH TWO HUNDRED FIFTY MILLION DOLLARS WAS RELATED TO INVENTORY ADJUSTMENTS WITHOUT THAT CHARGE OPERATING PROFIT FOR THE QUARTER WOULD HAVE BEEN SIX HUNDRED TWO MILLION DOLLARS MOBIL SAID EXPLORATION AND PRODUCTION OPERATIONS OVERSEAS WERE PROFITABLE DESPITE LOWER OIL PRICES OPERATING PROFIT IN THAT SECTOR EDGED HIGHER AS OIL PRODUCTION GREW PRIMARILY IN NIGERIA AND THE U. K. AREA OF THE NORTH SEA HIGHER NATURAL GAS PRICES HELPED TO OFFSET LOWER OIL PRICES ESPECIALLY IN THE U. S. MOBIL'S REVENUE IN THE QUARTER FELL BY FOUR POINT THREE PERCENT TO SIXTEEN POINT EIGHT SIX BILLION DOLLARS FROM SEVENTEEN POINT SIX TWO BILLION DOLLARS CHEVRON'S FOURTH QUARTER REVENUE FELL SIXTEEN PERCENT TO EIGHT POINT NINE ONE BILLION DOLLARS FROM TEN POINT SIX SIX BILLION DOLLARS CHEVRON'S BOTTOM LINE FOR THE QUARTER WAS HIT HARD BY A HUGE CHARGE THAT ENCOMPASSED NOT ONLY THE COST OF THE COMPANY'S CONTINUING RESTRUCTURING BUT INCLUDED AS WELL PART OF A CHARGE FOR THE PLANNED SALE OF TWO OF ITS REFINERIES EXCLUDING SPECIAL ITEMS THE COMPANY'S OPERATING PROFIT DECLINED BY ONLY FIVE PERCENT TO FIVE HUNDRED FIFTEEN MILLION DOLLARS ACCORDING TO CHEVRON'S CHIEF EXECUTIVE OFFICER KENNETH DERR THE COMPANY WAS ABLE TO MAINTAIN A RELATIVELY STRONG OPERATING PERFORMANCE BECAUSE OF THE STRENGTH OF ITS INTERNATIONAL OPERATIONS IN BOTH THE UPSTREAM AND DOWNSTREAM BUSINESSES AND THAT WAS DESPITE LOWER OIL PRICES DURING THE FOURTH QUARTER THE COMPANY RECEIVED AN AVERAGE OF TWELVE DOLLARS AND SEVENTY FIVE CENTS A BARREL FOR ITS OIL FOUR DOLLARS LESS THAN DURING THE SAME PERIOD LAST YEAR QUARTERLY NATURAL GAS PRICES REALIZED BY CHEVRON RAN AT ABOUT TWO DOLLARS PER THOUSAND CUBIC FEET TWENTY FIVE CENTS LESS THAN LAST YEAR DURING THE SAME PERIOD CHEVRON CORPORATION'S FOURTH QUARTER NET INCOME DIDN'T INCLUDE CHARGES FOR THE PLANNED SALE OF TWO REFINERIES THOSE CHARGES WERE TAKEN IN THE SECOND QUARTER AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT THE CHARGES WERE INCLUDED IN FOURTH QUARTER RESULTS THE MOST WANTED MAN IN THIS DEEP SOUTH TOWN IS A TALL DARK DRIFTER KNOWN AS JERRY JACKSON AT THE WINN DIXIE SUPERMARKET RUMORS FLY THAT HE WAS SEEN WITH ANOTHER JACKSON MICHAEL AT THE SINGER'S NEVERLAND RANCH SOME SPECULATE HE WAS PART OF THE PLOT TO KNEECAP SKATER NANCY KERRIGAN THE POLICE RECENTLY GOT A DIFFERENT TIP QUOTE WE HEARD THAT JERRY JACKSON WAS AT A FOOTBALL GAME WITH BEAR BRYANT QUOTE SAYS CAPTAIN WILLARD QUOTE PEEWEE QUOTE HURST REFERRING TO THE FAMED ALBEIT DEAD ALABAMA COACH IN FACT ABOUT THE ONLY PLACE THE ELUSIVE MR. JACKSON HASN'T BEEN SPOTTED IS HERE IN TALLADEGA WHERE HE IS WANTED IN CONNECTION WITH FRAUD ALLEGATIONS LARRY BARTON THE TOWN'S LONGTIME MAYOR IS UNDER FEDERAL INDICTMENT FOR PAYING MR. JACKSON MORE THAN TWENTY THOUSAND DOLLARS IN TOWN FUNDS FOR TREESTUMP REMOVAL THAT POLICE SAY NEVER TOOK PLACE MR. BARTON IS CHARGED WITH LAUNDERING THE MONEY AND POCKETING IT HIMSELF IT'S A BUNCH OF JUNK SAYS THE FEISTY FIFTY THREE YEAR OLD MAYOR THE ONLY THING I KNOW ABOUT MONEY LAUNDERING IS WHEN MY WIFE WASHES A DOLLAR BILL IN MY PANTS THE MAYOR ALSO SCOFFS AT CLAIMS THAT HE PAID A PHANTOM WORKMAN MR. JACKSON HE EXPLAINS GOES FROM TOWN TO TOWN WITH A MACHINE THAT GRINDS STUMPS INTO SAWDUST HE DID HIS WORK QUIETLY AND MOVED ON GUY DID A SUPER JOB THE MAYOR SAYS BUT TOWNSPEOPLE SUSPECT THAT THE ONLY THING WORKING OVERTIME IS THE MAYOR'S IMAGINATION IN A TOWN SO TIGHTKNIT THAT HOSPITAL ADMISSIONS ARE REPORTED IN THE LOCAL PAPER FOLKS SAY IT SIMPLY ISN'T POSSIBLE THAT A STRANGER CHEWED UP TREE STUMPS FOR OVER A YEAR WITHOUT ATTRACTING NOTICE TALLADEGA'S LIKE PEYTON PLACE EVERYBODY'S INTO EVERYBODY'S BUSINESS SAYS CASEY GIP STUDDARD A SALESMAN AT COWBOY HUBBARD'S FARMERS TRADING POST A GENERAL STORE FULL OF SEEDS BAGS OF PECANS AND ELDERLY MEN SWAPPING GOSSIP THE MAN MUST HAVE BOUGHT GROCERIES ADDS ROBERT NABORS A RETIRED MILL WORKER QUOTE SOMEONE WOULD HAVE SEEN HIM QUOTE OR HEARD HIM AT LEAST THOMAS GREENE HAS BEEN GRINDING STUMPS FOR YEARS AND SAYS IT ISN'T EXACTLY LOW PROFILE WORK TO PROVE HIS POINT HE STARTS UP HIS STUMPGRINDER AN UNGAINLY MACHINE WITH WHIRRING BELTS AND METAL TEETH THIS IS NOTHING HE SHOUTS OVER THE DEAFENING ROAR WHEN YOU'VE GOT IT GRINDING STUMP YOU CAN HEAR IT FOR TEN CITY BLOCKS IT'D WAKE THE DEAD LIKE OTHERS IN TOWN MR. GREENE IS EAGER TO MEET MR. JACKSON MR. GREENE EARNED JUST TWO THOUSAND SIX HUNDRED DOLLARS LAST YEAR GRINDING STUMPS AND WONDERS HOW HIS MYSTERIOUS COMPETITOR EARNED NEARLY TEN TIMES THAT MUCH I WANT TO SEE WHAT KIND OF MACHINE HE'S GOT SO I CAN GET ONE TOO HE SAYS DESPITE SUCH SKEPTICISM MAYOR BARTON HAS STUCK TO HIS STORY AND THEN SOME HE OFFERS A VIVID PROFILE OF MR. JACKSON SIX FOOT ONE ONE HUNDRED NINETY FIVE TO TWO HUNDRED FIFTEEN POUNDS DARK HAIR PROBABLY HISPANIC HE KEEPS SEVERAL LETTERS FROM MR. JACKSON ON HIS DESK AND HE DRIVES A VISITOR DOWN RESIDENTIAL STREETS WHERE HE SAYS MR. JACKSON REMOVED MANY OF THE QUOTE UGLY UNSIGHTLY STUMPS QUOTE LEFT BY TORNADOES AND OTHER STORMS THERE WAS A STUMP RIGHT THERE THAT'S BEEN DUG UP HE SAYS POINTING AT A SHALLOW CRATER BY THE CURB AND SEE THAT LITTLE INDENTURE THAT WAS ANOTHER ASKED IF MR. JACKSON CREATED THESE SPECIFIC STUMP HOLES THE MAYOR DEMURS I'M ASSUMING HE GOT SOME OF THOSE WE JUST GAVE HIM A SECTION OF TOWN TO WORK WE DON'T FOLLOW OUR WORKERS AROUND POLICE HOWEVER HAVEN'T FOUND ANYONE WHO WITNESSED MR. JACKSON'S WORK NOR IS THERE AN ELECTRICITY BILL OR OTHER PROOF OF MR. JACKSON'S STAY IN TOWN MEANWHILE RESIDENTS OF TALLADEGA A TOWN OF NINETEEN THOUSAND MIDWAY BETWEEN BIRMINGHAM ALABAMA AND ATLANTA HAVE LAUNCHED A LIGHTHEARTED MANHUNT OF THEIR OWN QUOTE JERRY JACKSON WAS SPOTTED YESTERDAY IN MEMPHIS QUOTE NORMAN CULVER TELLS CO WORKERS AT A FACTORY CAFETERIA HE WAS EATING LUNCH WITH ELVIS AT BURGER KING OR SOMETHING NOT SO SAYS SUSAN SPRINGFIELD A LOCAL SCHOOLTEACHER HE WAS BURIED IN THE RUBBLE IN L. A. OTHERS IN TALLADEGA HOPE THAT MR. JACKSON REMAINS AT LARGE ONE POPULAR T. SHIRT SHOWS A MAN'S HEAD WITH A QUESTION MARK FOR A FACE AND A CAPTION THAT READS TALLADEGA'S JERRY JACKSON KEEP 'EM STUMPED PEOPLE HERE ALSO ENJOY PLAYING PERRY MASON AT THE FACTORY MR. CULVER WONDERS WHY A MAN WHOM THE MAYOR DESCRIBES AS HISPANIC IS NAMED JERRY JACKSON IT SHOULD BE BUBBA GONZALES OR SOMETHING HE SAYS THEN THERE'S THE MATTER OF MR. JACKSON'S PENMANSHIP IN RECENT MONTHS THE MAYOR HAS RECEIVED SEVERAL LETTERS SIGNED QUOTE JERRY JACKSON QUOTE AND SENT FROM AROUND THE COUNTRY THE LAST TIME I HEARD FROM JERRY HE WAS IN FLORIDA THE MAYOR SAYS OFFERING A CHRISTMAS CARD WITH A SHAKY CHILDLIKE SIGNATURE AND APPROPRIATELY A JACKSONVILLE POSTMARK BUT THE TOWN COUNCILOR WHO BROUGHT CHARGES AGAINST THE MAYOR HOWARD RIP WILLIAMS GREETS SUCH EVIDENCE WITH GUFFAWS MOVING A PEN FROM HIS RIGHT HAND TO HIS LEFT MR. WILLIAMS SCRIBBLES A JERRY JACKSON SIGNATURE MUCH LIKE THAT ON THE MAYOR'S LETTERS JERRY MUST BE A REAL NERVOUS WRITER HE SAYS POLICE SAY THE LETTERS HAVE GENERAL DELIVERY AS A RETURN ADDRESS MAKING THEM HARD TO TRACE AND POLICE TOO HAVE JOINED IN THE FUN A MOCK POSTCARD ON CAPTAIN HURST'S BULLETIN BOARD READS QUOTE TO TALLADEGA P. D. KEEP UP THE GOOD WORK BEST WISHES AND HAPPY NEW YEAR THE SIGNATURE IS IN THE TREMULOUS HAND OF JERRY JACKSON SUCH HUMOR IS STARTING TO GET A LITTLE OLD FOR JERRY JAMMING JACKSON THE TALLADEGA DISK JOCKEY HAS HAD TO ENDURE NONSTOP RIBBING SINCE THE SEARCH FOR HIS NAMESAKE BEGAN PEOPLE ARE ALWAYS ASKING ME WHAT I DID WITH THE STUMPS AND WITH MY SHARE OF THE MONEY I DON'T EVEN CUT FIREWOOD THE MAYOR BY CONTRAST SEEMS UNFLUSTERED OF MR. JACKSON'S CRUDE HANDWRITING HE SAYS JERRY CAN'T WRITE WORTH A FLIP AND HE BLAMES THE WHOLE FUSS ON POLITICAL FOES QUOTE YOU CAN HAVE A HAM SANDWICH INDICTED BY A GRAND JURY QUOTE HE SCOFFS THE SON OF MILL WORKERS MR. BARTON MARRIED AT SIXTEEN WENT TO WORK BAGGING GROCERIES AT FIFTY CENTS AN HOUR AND ROSE FAR ENOUGH TO LOSE A RACE FOR LIEUTENANT GOVERNOR OF ALABAMA HE LIVES IN A MODEST HOUSE WITH AN AMERICAN FLAG OUT FRONT AND IS REGARDED AS AN ACCESSIBLE POLITICIAN I GO TO A FUNERAL A DAY THE MAYOR SAYS THE SLOGAN OF HIS LAST CAMPAIGN Y'ALL CALL I'LL RETURN YOUR CALL HE HAS ALSO TURNED FOIBLES INTO VOTE GETTERS HE ONCE GAVE A KEY TO THE CITY TO VANESSA WILLIAMS THE MISS AMERICA WHO THEN LOST HER TITLE BECAUSE SHE HAD POSED FOR NUDE PHOTOGRAPHS THE MAYOR ASKED FOR THE KEY BACK THAT SCORED HIM POINTS WITH CONSERVATIVES NOW MANY PEOPLE SUSPECT HE HAS A SIMILAR ELEVENTH HOUR STUNT UP HIS SLEEVE INDEED THE MAYOR PROMISES THERE ARE SOME SURPRISING THINGS THAT WILL SURFACE IN COURT ASKED IF THEY MIGHT INCLUDE THE ELUSIVE MR. JACKSON THE MAYOR JUST SMILES ANYTHING'S POSSIBLE HE SAYS WILLIAM FORD AND DON EDWARDS TWO LIBERAL CHAMPIONS OF EDUCATION AND CIVIL RIGHTS ARE THE LATEST IN A SERIES OF RETIRING LAWMAKERS WHOSE DEPARTURES WILL CHANGE THE FACE OF THE HOUSE AND BRING A NEW GENERATION OF DEMOCRATS TO POWER AFTER THE LARGE TURNOVER OF THE NINETEEN NINETY TWO ELECTIONS IN WHICH ONE HUNDRED TEN NEW HOUSE MEMBERS WERE ELECTED RANK AND FILE LAWMAKERS SEEM ALMOST UNNERVED AS AN ADDITIONAL THIRTY EIGHT OF THEIR COLLEAGUES HAVE RESIGNED OR SAID THEY WON'T RUN AGAIN THIS FALL MR. FORD A MICHIGAN DEMOCRAT AND CHAIRMAN OF THE EDUCATION AND LABOR COMMITTEE AND MR. EDWARDS THE DEAN OF THE CALIFORNIA DELEGATION AND RANKING DEMOCRAT ON THE JUDICIARY COMMITTEE ARE TWO OF THE MOST PROMINENT AND THEIR ANNOUNCEMENTS WITHIN HOURS OF ONE ANOTHER YESTERDAY DRAMATIZE THE PACE OF CHANGE IN COMMITTEES WITH INFLUENCE OVER HEALTH TELECOMMUNICATIONS AND BANKING LEGISLATION THE SIXTY SIX YEAR OLD MR. FORD FIRST ELECTED IN THE LYNDON JOHNSON LANDSLIDE OF NINETEEN SIXTY FOUR REMAINS A MAJOR PLAYER ON HEALTH CARE THIS YEAR BUT THE NEXT DEMOCRAT IN LINE REPRESENTATIVE WILLIAM CLAY OF MISSOURI IS A LESS EFFECTIVE LEADER WHO HAS HURT HIMSELF BY HIS TEMPESTUOUS STYLE ON THE JUDICIARY COMMITTEE THE SEVENTY NINE YEAR OLD MR. EDWARDS IS THE VERY PICTURE OF THE REASONED DIGNIFIED LAWMAKER AND AS THE CHAIRMAN OF THE CIVIL AND CONSTITUTIONAL RIGHTS PANEL HE IS THE THIRD SUBCOMMITTEE CHAIRMAN TO ANNOUNCE HIS RETIREMENT ONLY THIS WEEK REPRESENTATIVE BILL HUGHES D. N. J. CHAIRMAN OF THE SUBCOMMITTEE ON INTELLECTUAL PROPERTY AND JUDICIAL ADMINISTRATION SAID HE WILL LEAVE AFTER THIS YEAR AND REPRESENTATIVE ROMANO MAZZOLI D. KENTUCKY WHO GAVE HIS NAME TO LANDMARK IMMIGRATION LEGISLATION IN THE NINETEEN EIGHTIES HAS SAID PREVIOUSLY HE WON'T SEEK ANOTHER TERM THE IMMEDIATE RESULT IS TO EXPAND THE INFLUENCE OF SUCH YOUNGER MEMBERS AS REPRESENTATIVE MIKE SYNAR AN AMBITIOUS POPULIST STYLE OKLAHOMAN WHO AT FORTY FOUR YEARS OLD NEXT YEAR WOULD RANK ONLY BEHIND CHAIRMAN JACK BROOKS OF TEXAS AND JOHN CONYERS OF MICHIGAN WITH MAJOR TELECOMMUNICATIONS LEGISLATION PENDING MR. SYNAR WILL HAVE POWER BASES IN BOTH THE JUDICIARY AND ENERGY AND COMMERCE COMMITTEES WHERE THE RETIREMENT OF REPRESENTATIVE AL SWIFT D. WA. CREATES NEW OPPORTUNITIES THE SAME PATTERN IS REPEATED IN THE BANKING COMMITTEE WHERE THE RANKING DEMOCRAT REPRESENTATIVE STEVE NEAL LAST WEEK ANNOUNCED HE WON'T SEEK RE ELECTION IN NORTH CAROLINA MR. NEAL'S DECISION OPENS UP THE POWERFUL FINANCIAL INSTITUTIONS SUBCOMMITTEE WHICH HE NOW HEADS ONCE JUNIOR DEMOCRATS SUCH AS REPRESENTATIVE BARNEY FRANK OF MASSACHUSETTS OR NEW YORK REPRESENTATIVE CHARLES SCHUMER ARE POSITIONED TO EXPAND THEIR POWER QUOTE I THINK IT'S TIME TO GO AND GO ON MY TERMS QUOTE MR. FORD SAID IN ANNOUNCING HIS RETIREMENT ON THE HOUSE FLOOR WHEN MAJORITY LEADER RICHARD GEPHARDT D. MISSOURI ROSE MINUTES LATER REPUBLICANS JOKINGLY INVITED HIM TO RETIRE AS WELL BUT FOR BOTH SIDES THE SPATE OF ANNOUNCEMENTS BROUGHT A CERTAIN MELANCHOLY TO THE FIRST DAY OF A NEW SESSION FOR WHICH MANY HAD COME TO THE FLOOR TO EULOGIZE THEIR LATE SPEAKER THOMAS O'NEILL JUNIOR HE REPRESENTATIVE O'NEILL ADDED A HUMOR AND PERSONAL TOUCH THAT HAS BEEN IN SHORT SUPPLY SINCE HE LEFT SAID WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D. ILLINOIS MR. ROSTENKOWSKI COULD BE CAUGHT IN THE UNDERTOW HIMSELF GIVEN A GRAND JURY INVESTIGATION HERE AND A CROWDED PRIMARY FIELD BACK HOME IN CHICAGO THIS SPRING TORONTO SUN PUBLISHING CORPORATION WROTE DOWN BY FORTY SIX POINT SIX MILLION CANADIAN DOLLARS THIRTY FIVE POINT FIVE MILLION DOLLARS THE VALUE OF ASSETS IT PURCHASED IN SEVERAL COSTLY FORAYS INTO THE U. S. NEWSPAPER BUSINESS AFTER THE WRITE DOWN AND A SIX POINT ONE MILLION CANADIAN DOLLAR PROVISION FOR STAFF REDUCTION PROGRAMS THE TORONTO NEWSPAPER PUBLISHER REPORTED A FOURTH QUARTER LOSS OF FORTY NINE POINT FOUR MILLION CANADIAN DOLLARS OR TWO CANADIAN DOLLARS AND SEVEN CENTS A SHARE A YEAR EARLIER IT HAD PROFIT OF SEVEN HUNDRED TWENTY THREE THOUSAND CANADIAN DOLLARS OR THREE CANADIAN CENTS A SHARE TORONTO SUN IS SIXTY TWO PERCENT OWNED BY MACLEAN HUNTER LIMITED A TORONTO PUBLISHING AND BROADCASTING CONCERN PAUL GODFREY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TORONTO SUN SAID THE COMPANY WROTE DOWN THE ENTIRE TWENTY EIGHT POINT NINE MILLION CANADIAN DOLLARS CARRYING VALUE OF SECURITIES RELATED TO ITS FORMER OWNERSHIP OF THE HOUSTON POST NEWSPAPER HE SAID THE COMPANY STILL EXPECTS TO RECOVER THE MONEY EVENTUALLY BUT DECIDED TO TREAT THE ASSET MORE CONSERVATIVELY FISONS P. L. C. UNVEILED PLANS TO LAY OFF UP TO FIFTEEN PERCENT OF THE SIX THOUSAND FOUR HUNDRED EMPLOYEES AT ITS PHARMACEUTICAL DIVISION LAST MONTH THE BRITISH COMPANY ABRUPTLY OUSTED CHIEF EXECUTIVE CEDRIC SCROGGS AND ANNOUNCED RESTRUCTURING STEPS THAT IT SAID WOULD WIPE OUT PROJECTED FULL YEAR PROFIT OF ONE HUNDRED MILLION POUNDS ONE HUNDRED FORTY NINE MILLION DOLLARS THE BRUNT OF LAST YEAR'S RESTRUCTURING CHARGE WILL BE USED TO CLEAN UP A FOUNDERING SCIENTIFIC INSTRUMENTS UNIT WITH THE INSTRUMENTS UNIT IN ORDER MANAGEMENT CAN TURN ITS ATTENTION BACK TO THE PHARMACEUTICAL UNIT WHICH ACOUNTS FOR ABOUT ONE THIRD OF SALES BUT TWO THIRDS OF THE COMPANY'S ANNUAL PRETAX PROFIT SINCE BECOMING CHAIRMAN IN A HASTY MANAGEMENT SHIFT IN LATE NINETEEN NINETY ONE MR. EGAN HAS BEEN FORCED TO TACKLE PERSISTENT PROBLEMS INCLUDING COMPLAINTS FROM THE U. S. FOOD AND DRUG ADMINISTRATION THAT PROMPTED WITHDRAWAL OF TWO FISONS DRUGS FROM THE U. S. MARKET C. CUBE MICROSYSTEMS MILPITAS CALIFORNIA THIS MAKER OF INTEGRATED CIRCUITS ADDED T. J. RODGERS FORTY FIVE YEARS OLD TO ITS BOARD BRINGING THE NUMBER OF DIRECTORS TO SIX MR. RODGERS IS CHIEF EXECUTIVE OFFICER OF CYPRESS SEMICONDUCTOR CORPORATION THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND ONE EIGHTH PERCENT HIGH THREE PERCENT LOW THREE AND ONE SIXTEENTH PERCENT NEAR CLOSING BID THREE AND ONE EIGHTH PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH THREE PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH FIVE PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT OH EIGHT PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE OH PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT ONE TWO PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT ONE EIGHT PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FORTY NINE DAYS THREE POINT THREE OH PERCENT TWO HUNDRED FIFTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE ONE PERCENT THIRTY DAYS THREE POINT ONE TWO PERCENT SIXTY DAYS THREE POINT ONE FIVE PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE TWO PERCENT ONE MONTH TWO POINT FIVE FIVE PERCENT TWO MONTHS TWO POINT FIVE SIX PERCENT THREE MONTHS TWO POINT SIX NINE PERCENT SIX MONTHS THREE POINT OH FOUR PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH ONE PERCENT ONE MONTH THREE POINT OH SEVEN PERCENT THREE MONTHS THREE POINT TWO THREE PERCENT SIX MONTHS BANKERS ACCEPTANCES TWO POINT NINE NINE PERCENT THIRTY DAYS THREE POINT OH ONE PERCENT SIXTY DAYS THREE POINT OH THREE PERCENT NINETY DAYS THREE POINT OH SIX PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE OH PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE SIX PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT FOUR MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND THREE EIGHTHS PERCENT SIX MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT NINE OH PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY TWENTY FOURTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE SIX PERCENT THIRTEEN WEEKS THREE POINT ONE FOUR PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT EIGHT PERCENT SIXTY DAYS SIX POINT NINE FIVE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT SEVEN PERCENT SIXTY DAYS SIX POINT NINE SEVEN PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN THREE PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS A WHITE COLLAR CRIMINAL CAN'T AVOID PRISON JUST BECAUSE HIS INCARCERATION WOULD DESTROY HIS BUSINESS AND THROW HIS EMPLOYEES OUT OF WORK A FEDERAL APPEALS COURT HAS RULED THE RULING OVERTURNS AN UNUSUAL DECISION BY A PITTSBURGH JUDGE LAST YEAR TO PUT ELLIOTT SHARAPAN ON PROBATION RATHER THAN IMPRISON HIM FOR MAIL FRAUD AND FALSE CORPORATE TAX FILINGS U. S. DISTRICT JUDGE BARRON P. MCCUNE HAD CONCLUDED THAT SOCIETY WOULD BE BETTER SERVED IF THE COMPANY STAYED AFLOAT AND SOME OF ITS REVENUE WAS AVAILABLE TO ENHANCE THE COMPENSATION AVAILABLE TO VICTIMS OF MR. SHARAPAN'S FRAUD THE FEDERAL APPEALS COURT RULING DENYING JUDGE MCCUNE SUCH DISCRETION IS THE LATEST TO ADDRESS AN ISSUE THAT HAS TROUBLED FEDERAL JUDGES FOR SOME TIME UNDER WHAT CIRCUMSTANCES CAN THEY DEPART FROM FEDERAL SENTENCING GUIDELINES AND USE THEIR OWN JUDGMENT ESTABLISHED UNDER THE NINETEEN EIGHTY FOUR SENTENCING REFORM ACT THE GUIDELINES PROVIDE A RANGE OF PRISON SENTENCES FOR SOME TWO THOUSAND CRIMES TAKING INTO CONSIDERATION SUCH FACTORS AS THE PAST RECORD OF THE DEFENDANT AND VARIOUS EXTENUATING CIRCUMSTANCES THE INTENT WAS TO BRING UNIFORMITY TO PRISON SENTENCES BUT THE GUIDELINES HAVE BEEN CONTROVERSIAL SINCE THEIR INCEPTION MANY JUDGES VIEW THEM AS LEGISLATIVE INTERFERENCE WITH THEIR DISCRETION AND WITH THE JUDICIAL PROCESS THE CONCERNS ARE SIMILAR TO THOSE THAT HAVE BEEN RAISED ABOUT MINIMUM MANDATORY SENTENCES WHICH REQUIRE JUDGES TO IMPOSE PRISON SENTENCES WITHOUT PAROLE FOR CERTAIN CRIMES NO MATTER WHAT THE CIRCUMSTANCES A RELATED IDEA AUTOMATIC LIFE SENTENCES AFTER THREE CONVICTIONS FOR SERIOUS VIOLENT CRIMES HAS RECEIVED BROAD BIPARTISAN SUPPORT IN CONGRESS AND FROM THE CLINTON ADMINISTRATION IN THE PITTSBURGH CASE JUDGE MCCUNE DISREGARDED A GUIDELINE REQUIREMENT THAT HE SENTENCE MR. SHARAPAN TO BETWEEN THIRTY THREE AND FORTY ONE MONTHS IN PRISON AND ORDER HIM TO PAY FORTY THOUSAND SEVEN HUNDRED NINETY NINE DOLLARS AND FIFTY CENTS IN RESTITUTION PRESIDENT OF RALPH'S DISCOUNT CITY INCORPORATED A HEALTH AND BEAUTY SUPPLY STORE IN PITTSBURGH MR. SHARAPAN FACED A THIRTY COUNT INDICTMENT STEMMING FROM A COUPON REDEMPTION SCAM THAT NETTED HIM TWO POINT TWO MILLION DOLLARS HE PLEADED GUILTY TO TWO COUNTS OF MAIL FRAUD AND TWO COUNTS OF FILING FALSE CORPORATE TAX RETURNS IN HANDING DOWN A SENTENCE JUDGE MCCUNE REASONED THAT RALPH'S DISCOUNT AND ITS THIRTY EMPLOYEES PROBABLY COULDN'T SURVIVE MR. SHARAPAN'S INCARCERATION AND THAT IT MADE QUOTE MORE SENSE QUOTE FOR HIM TO OPERATE HIS BUSINESS AND PAY BACK HIS VICTIMS ACCORDING TO THE APPEALS COURT OPINION JUDGE MCCUNE INCREASED THE RECOMMENDED AMOUNT OF RESTITUTION TO THREE HUNDRED THOUSAND DOLLARS PLACED MR. SHARAPAN UNDER HOUSE ARREST AT NIGHT FOR TWO YEARS AND ORDERED HIM TO OPERATE HIS BUSINESS CONSCIENTIOUSLY IN OVERTURNING THE SENTENCE THE THIRD U. S. CIRCUIT COURT OF APPEALS IN PHILADELPHIA RULED THAT THE DECISION VIOLATED A FEDERAL SENTENCING POLICY GUIDELINE SPECIFICALLY REQUIRING JUDGES TO REFRAIN FROM TAKING VOCATIONAL SKILLS INTO ACCOUNT WHEN SENTENCING DEFENDANTS THE ONLY EXCEPTION THE APPEALS COURT RULED MIGHT BE WHEN IMPRISONMENT WOULD DEPRIVE SOCIETY OF SOMETHING OF EXTRAORDINARY VALUE RALPH'S DISCOUNT AND ITS EMPLOYEES THE APPEAL COURT RULED DIDN'T MEET THAT TEST WHAT THE GOVERNMENT WAS CONCERNED ABOUT SAID ASSISTANT U. S. ATTORNEY BONNIE R. SCHLUETER WHO ARGUED THE CASE IS THAT A DEPARTURE SUCH AS THIS WOULD REALLY DEFEAT ONE OF THE PURPOSES OF THE GUIDELINES TO ENSURE THAT WHITE COLLAR CRIMINALS WERE GIVEN LONG SENTENCES MR. SHARAPAN'S ATTORNEY IN PITTSBURGH CHARLES F. SCARLATA SAID JUDGE MCCUNE'S SENTENCE WAS APPROPRIATE UNDER THE CIRCUMSTANCES THE APPEALS COURT ORDERED THAT HE BE RESENTENCED WITHIN THE GUIDELINES MR. SHARAPAN HAS BEEN FREE PENDING HIS APPEAL AND RESENTENCING AN EMPLOYER CAN BE HELD RESPONSIBLE FOR ACTS OF SEXUAL HARASSMENT BY HIGH LEVEL SUPERVISORY EMPLOYEES EVEN IF THE COMPANY HAS TAKEN STEPS TO ADDRESS THE PROBLEM A FEDERAL APPEALS COURT RULED THE SECOND U. S. CIRCUIT COURT OF APPEALS IN NEW YORK ALSO SAID THAT A PLAINTIFF ALLEGING THAT SEX WAS DEMANDED IN RETURN FOR JOB BENEFITS NEED NOT DEMONSTRATE ECONOMIC LOSS TO MAKE A SUCCESSFUL CLAIM THE SPECIFIC CASE INVOLVES A COLUMBIA UNIVERSITY STUDENT AND EMPLOYEE WHO FILED A SEX DISCRIMINATION CLAIM AFTER BEING LAID OFF IN AUGUST NINETEEN NINETY THE WOMAN CLAIMED THAT SHE HAD BEEN HARASSED BY HER SUPERVISOR A HIGH LEVEL OFFICER IN THE UNIVERSITY'S FUND RAISING OFFICE WHO ALLEGEDLY DEMANDED SEX IN RETURN FOR RAISES AND OTHER BENEFITS THE SUPERVISOR WHO DIDN'T DENY HAVING A SEXUAL RELATIONSHIP WITH THE WOMAN BUT CLAIMED THAT IT WAS CONSENSUAL WAS FORCED TO RESIGN ABOUT THE SAME TIME THE WOMAN WAS LAID OFF COLUMBIA SUCCESSFULLY ARGUED AT THE TRIAL COURT LEVEL THAT IT SHOULDN'T BE HELD LIABLE BECAUSE IT HAD DEALT WITH THE PROBLEM BUT IN REVERSING THE LOWER COURT AND REINSTATING THE ACTION AGAINST THE SCHOOL THE APPEALS COURT SAID THAT AN EMPLOYER IS LIABLE FOR A DISCRIMINATORILY ABUSIVE WORK ENVIRONMENT CREATED BY A SUPERVISOR IF THE SUPERVISOR USES HIS ACTUAL OR APPARENT AUTHORITY TO FURTHER THE HARASSMENT BY CONTRAST IF THE ALLEGED HARASSER IS A CO WORKER OR LOWER LEVEL SUPERVISOR WHO DOESN'T USE HIS AUTHORITY TO CARRY OUT THE HARASSMENT THEN THE EMPLOYER WILL ONLY BE LIABLE IF IT DID NOTHING OR PROVIDED NO AVENUE FOR COMPLAINT THE COURT SAID KARIBIAN V. COLUMBIA UNIV. ET AL. NUMBER NINETY THREE TO SEVEN THOUSAND ONE HUNDRED EIGHTY EIGHT MARGARET A. JACOBS CONTRIBUTED TO THIS ARTICLE CONDE NAST PUBLICATIONS INCORPORATED HAS GIVEN ITS MOST IMPORTANT EDITORIAL JOB TO A THIRTY FIVE YEAR OLD BRITISH EDITOR JAMES TRUMAN MR. TRUMAN THE EDITOR IN CHIEF OF DETAILS THE COMPANY'S HIP MAGAZINE FOR YOUNG MEN WILL SUCCEED CONDE NAST'S LEGENDARY EIGHTY ONE YEAR OLD EDITORIAL DIRECTOR ALEXANDER LIBERMAN MR. TRUMAN'S JOB WILL BE TO TROUBLE SHOOT AT THE CONDE NAST MAGAZINES THAT NEED SPECIAL ATTENTION THE COMPANY PUBLISHES THIRTEEN MAGAZINES INCLUDING VOGUE GLAMOUR G. Q. VANITY FAIR BRIDE'S AND GOURMET MR. LIBERMAN HAS BEEN EXPECTED TO RETIRE FOR SEVERAL YEARS BUT SPECULATION ABOUT HIS SUCCESSOR HAD CENTERED ON THE EDITORS OF BETTER KNOWN MAGAZINES IN THE EMPIRE SUCH AS ANNA WINTOUR AT VOGUE OR TINA BROWN AT THE NEW YORKER MR. TRUMAN NAMED EDITOR OF DETAILS IN NINETEEN NINETY AFTER A STINT AS A FEATURE EDITOR AT VOGUE STARTING IN NINETEEN EIGHTY EIGHT IS CREDITED WITH QUADRUPLING THE CIRCULATION OF DETAILS TO MORE THAN FOUR HUNDRED THOUSAND BUT HE HAS NEVER HEADED ANOTHER MAGAZINE AND DOESN'T HAVE MR. LIBERMAN'S DESIGN BACKGROUND JUST TWO WEEKS AGO CONDE NAST ANNOUNCED THAT ITS SIXTY EIGHT YEAR OLD PRESIDENT BERNARD LESER WOULD BE SUCCEEDED BY STEVEN FLORIO THE FORTY FOUR YEAR OLD PRESIDENT OF THE NEW YORKER IN ONE SWOOP S. I. QUOTE SI QUOTE NEWHOUSE JUNIOR HAS REPLACED BOTH THE TOP EDITORIAL AND THE TOP ADVERTISING MANAGERS OF CONDE NAST WITH A NEW GENERATION THIS IS A CHANGING OF THE GUARD SAYS MR. NEWHOUSE CHAIRMAN OF BOTH CONDE NAST AND ITS PARENT ADVANCE PUBLICATIONS INCORPORATED WHO NEVERTHELESS INSISTS HE DOESN'T WANT THE MAGAZINES PUSHED IN A NEW DIRECTION NOBODY EXPECTS MR. TRUMAN TO CARRY ANYWHERE NEAR MR. LIBERMAN'S CLOUT I WOULDN'T SAY THAT THE EDITORS WILL REPORT TO JAMES SAYS MR. NEWHOUSE HE WILL BE THERE TO HELP EDITORS AND MAGAZINES THAT NEED HELP AND ASK FOR IT MR. TRUMAN HIMSELF ACKNOWLEDGES HIS ROLE WILL BE LARGELY ADVISORY THIS IS LIKE GOING ON STAGE AFTER LAURENCE OLIVIER SAYS MR. TRUMAN HE WAS A LEGENDARY PERFORMER AND I DON'T THINK THAT ON DAY ONE I'LL MAGICALLY BECOME ALEX LIBERMAN THE JOB WAS AN EXPRESSION OF HIS TALENT AND PERSONALITY I HOPE OVER TIME THAT THE JOB EVOLVES AS AN EXPRESSION OF WHAT I KNOW WHICH IS MORE EDITORIALLY DRIVEN THAN VISUALLY DRIVEN QUOTE AND WHICH MAGAZINES WILL MR. TRUMAN BE LIKELY TO ADVISE INSIDERS SAY THE MAGAZINES THAT MOST NEED HELP INCLUDE MADEMOISELLE VANITY FAIR AND BON APPETIT MADEMOISELLE JUST INSTALLED A NEW EDITOR LAST FALL AFTER THE PREVIOUS EDITOR GABE DOPPELT MADE CHANGES IN THE YOUNG WOMAN'S MAGAZINE THAT WERE DEEMED TOO CUTTING EDGE FOR ADVERTISERS BON APPETIT'S AD PAGES DROPPED NEARLY THIRTY PERCENT LAST YEAR AND VANITY FAIR WHILE ITS CIRCULATION HAS GAINED UNDER ITS NEW EDITOR GRAYDON CARTER ISN'T ATTRACTING AS MANY ADVERTISERS AS IT WAS WHEN MS. BROWN RAN IT MR. TRUMAN'S TALENTS MAY NOT BE NEEDED OR WANTED AT SUCH REPUTED CONDE NAST PERFORMERS AS GLAMOUR SELF G. Q. AND ALLURE SAYS ART COOPER EDITOR OF MEN'S MAGAZINE G. Q. I HAVEN'T WORKED WITH ANYBODY FOR EIGHT YEARS RUTH WHITNEY EDITOR OF GLAMOUR HAS A SIMILAR INDEPENDENCE THE MAGAZINES THAT WORK SUCCESSFULLY INDEPENDENTLY WILL CONTINUE TO DO SO THE CHANGES COME AT A TIME WHEN CONDE NAST WHOSE WELL KNOWN MAGAZINES ARE SOME OF THE INDUSTRY'S LEADERS IS NONETHELESS SUFFERING FROM THE WEAK ADVERTISING MARKET INDEED SOME CONDE NAST INSIDERS SAY THAT FEWER THAN HALF THE COMPANY'S MAGAZINES CURRENTLY ARE PROFITABLE WHILE MESSRS FLORIO AND TRUMAN AREN'T EXPECTED TO TAKE THE COMPANY IN A DRASTICALLY NEW DIRECTION THEY ARE EXPECTED TO HELP PUSH THE COMPANY FASTER TOWARD THE MULTIMEDIA FUTURE ADVANCE ALSO OWNS ONE OF THE NATION'S LARGEST CABLE T. V. SYSTEMS A CHAIN OF NEWSPAPERS AND THE BOOK PUBLISHER RANDOM HOUSE INCORPORATED MR. NEWHOUSE HAS ALREADY AGREED TO INVEST FIVE HUNDRED MILLION DOLLARS IN Q. V. C. NETWORKS INCORPORATED'S BID FOR ENTERTAINMENT AND PUBLISHING GIANT PARAMOUNT COMMUNICATIONS INCORPORATED THERE IS NO STRATEGY WE HAVE IN MIND ABOUT REDEFINING THE MAGAZINES SAYS MR. NEWHOUSE BUT HE ADDS WE FACE A FUTURE FULL OF TECHNOLOGICAL CHALLENGES AND READERS WITH DIFFERENT BACKGROUNDS AND INTERESTS ALSO WE SEE DIFFERENT PROBLEMS IN MARKETING WE DIDN'T BEGIN TO THINK OF A FEW YEARS AGO WHILE MR. LIBERMAN'S TENURE AT CONDE NAST HAS BEEN LONG THIRTY ONE YEARS SO FAR AND ILLUSTRIOUS EVEN HE KNEW IT WAS TIME FOR A CHANGE SAYS MR. NEWHOUSE AS OF APRIL FIRST WHEN MR. TRUMAN BECOMES EDITORIAL DIRECTOR MR. LIBERMAN WILL ASSUME THE NEW POST OF DEPUTY CHAIRMAN EDITORIAL PRESUMABLY SPENDING LESS TIME IN THE OFFICE BUT CONTINUING TO BE A TRUSTED ADVISER TO MR. NEWHOUSE MR. TRUMAN WASN'T MR. NEWHOUSE'S FIRST CHOICE FOR THE JOB HE INITIALLY OFFERED IT TO MS. BROWN IN NINETEEN NINETY TWO GIVING HER THE CHOICE BETWEEN THE EDITORIAL DIRECTOR POST AND THE EDITORSHIP OF THE NEW YORKER MS. BROWN THEN EDITOR OF CONDE NAST'S VANITY FAIR CHOSE THE NEW YORKER BUT MR. LIBERMAN SAID HE PERSONALLY RECOMMENDED MR. TRUMAN TO SUCCEED HIM QUOTE YES HE'S YOUNG BUT SO WAS I WHEN I STARTED QUOTE SAYS MR. LIBERMAN HE JOINED THE ART DEPARTMENT OF VOGUE IN NINETEEN FORTY ONE AND TWO YEARS LATER AT AGE THIRTY ONE WAS NAMED VOGUE'S ART DIRECTOR MR. LIBERMAN BECAME FAMOUS FOR CREATING THE MAGAZINE'S DRAMATIC STYLE IN THE FORTIES AND FIFTIES AND HIS INFLUENCE WAS SO STRONG AT CONDE NAST THAT FOR YEARS INSIDERS SAY HE EVEN DICTATED WHO BECAME EDITOR OF EACH PUBLICATION AFTER THE NEWHOUSE FAMILY BOUGHT CONDE NAST IN NINETEEN FIFTY NINE MR. LIBERMAN CONTINUED TO BE POWERFUL AS A TASTE MAKER REVIEWING EACH ISSUE OF ALMOST EVERY MAGAZINE FOR YEARS TO SUCCEED MR. TRUMAN AT DETAILS CONDE NAST NAMED JOHN LELAND THIRTY FOUR CURRENTLY A SENIOR EDITOR AT NEWSWEEK EACH YEAR FREEDOM HOUSE A NEW YORK BASED HUMAN RIGHTS ORGANIZATION RATES COUNTRIES ON POLITICAL AND CIVIL RIGHTS THEIR LATEST REPORT LISTS THE UNITED STATES AS ONE OF TWENTY NINE NATIONS THAT ARE TRULY FREE BUT FREEDOM HOUSE NOTES THIS IS QUOTE NO SIGN OF PERFECTION QUOTE PROBLEMS CITED FOR THE U. S. INCLUDE ELECTION LAWS FAVORING ENTRENCHED INCUMBENTS AND QUOTE SIGNIFICANT CONTROVERSIES OVER THE SOMETIMES STRANGELY SHAPED LEGISLATIVE DISTRICTS DESIGNED TO GUARANTEE THE ELECTION OF RACIAL MINORITIES QUOTE RACIAL GERRYMANDERING HAS BECOME ENOUGH OF A BLIGHT ON AMERICA'S POLITICAL SYSTEM THAT IT'S NOW BEING CITED AS A REAL PROBLEM BY A LEADING HUMAN RIGHTS GROUP IT IS THEREFORE SIGNIFICANT THAT LATE LAST MONTH A THREE JUDGE FEDERAL PANEL ISSUED A UNANIMOUS DECISION THAT LOUISIANA'S BIZARRELY SHAPED CONGRESSIONAL DISTRICTS ARE AN UNCONSTITUTIONAL RACIAL GERRYMANDER THE COURT SAID THE STATE HAD GONE TOO FAR IN PACKING BLACK VOTERS INTO TWO DISTRICTS IN ORDER TO GUARANTEE MINORITIES WOULD WIN THE FOURTH DISTRICT IS DEPICTED HERE SEE ACCOMPANYING ILLUSTRATION W. S. J. JANUARY TENTH NINETEEN NINETY FOUR SNAKING AROUND THE PERIMETER OF THE STATE ED ADAMS A BLACK CITY COUNCILMAN WHO SUED TO OVERTURN THE DISTRICTS SAYS THE DECISION IS A WELCOME STEP AWAY FROM A SEGREGATED SOCIETY WHERE WE SEE EVERYTHING IN TERMS OF COLOR THE LOUISIANA DECISION WILL LIKELY BE APPEALED TO THE SUPREME COURT LAST YEAR THE COURT RULED FOR THE FIRST TIME THAT DISTRICTS DRAWN FOR THE SOLE PURPOSE OF SEGREGATING VOTERS BY RACE RESEMBLED A FORM OF POLITICAL APARTHEID AND COULD BE UNCONSTITUTIONAL IN SHAW VERSUS RENO WHICH CHALLENGED A SERPENTINE ONE HUNDRED NINETY MILE LONG NORTH CAROLINA DISTRICT THE COURT NOTED SUCH RACIALLY PACKED DISTRICTS REINFORCE IMPERMISSIBLE RACIAL STEREOTYPES NAMELY THAT MEMBERS OF A MINORITY GROUP THINK ALIKE SHARE THE SAME POLITICAL INTERESTS AND WILL PREFER THE SAME CANDIDATES WE WOULD ADD THAT THEY ALSO GO AGAINST THE LONG HELD VIEW THAT INDIVIDUAL RIGHTS NOT GROUP RIGHTS ARE ENSHRINED IN THE CONSTITUTION INDEED THE VOTING RIGHTS ACT CLEARLY RENOUNCES A RIGHT TO HAVE MEMBERS OF A PROTECTED CLASS ELECTED IN NUMBERS EQUAL TO THEIR PROPORTION OF THE POPULATION BUT JUSTICE DEPARTMENT LAWYERS HAVE TWISTED THE ACT TO EFFECTIVELY REQUIRE A SPOILS SYSTEM THAT WOULD LEAD TO A CERTAIN RACIAL OUTCOME SOME BLACK ELECTED OFFICIALS CHEERED JUSTICE ON FOR SELF INTERESTED REASONS RACIAL GERRYMANDERS GIVE THEM SAFE PROTECTED SEATS THAT DON'T REQUIRE THEM TO BUILD POLITICAL ALLIANCES ACROSS RACIAL LINES OR TOLERATE OPPOSITION FROM OTHER POTENTIAL BLACK LEADERS JOHN PAYTON LEARNED THAT LAST MONTH THE CONGRESSIONAL BLACK CAUCUS EFFECTIVELY FORCED MR. PAYTON PRESIDENT CLINTON'S CHOICE TO BE ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS TO WITHDRAW BECAUSE HE DECLINED TO STRONGLY SUPPORT THE CONTINUED DRAWING OF RACE CONSCIOUS DISTRICTS STILL SOME BLACK LEADERS ARE HAVING SECOND THOUGHTS REPRESENTATIVES CRAIG WASHINGTON AND JOHN LEWIS HAVE WORRIED THAT RACIAL GERRYMANDERING COULD DILUTE MINORITY VOTING POWER BECAUSE IT MEANS MORE MEMBERS OF CONGRESS WILL HAVE LILY WHITE DISTRICTS AND MIGHT FEEL FREE TO SHORTCHANGE MINORITY CONCERNS PRINCETON PROFESSOR CAROL SWAIN AN EXPERT ON BLACKS IN CONGRESS ARGUES THAT BLACKS CAN'T EASILY INCREASE THEIR CURRENT NUMBERS IN LEGISLATIVE BODIES IF THEY ARE CORRALLED INTO A FEW SUPER BLACK DISTRICTS MS. SWAIN NOTES THERE ARE MANY RECENT EXAMPLES OF BLACKS WHO'VE MADE APPEALS ACROSS RACIAL LINES AND WON WHITE VOTES SENATOR CAROL MOSELEY BRAUN VIRGINIA GOVERNOR DOUG WILDER MAYOR NORM RICE OF SEATTLE MAYOR SHARON SAYLES BELTON OF MINNEAPOLIS AND REPRESENTATIVES ALAN WHEAT AND GARY FRANKS ALL WON AMONG ELECTORATES THAT WERE AT LEAST EIGHTY PERCENT WHITE IN LOUISIANA THERE ARE ALSO SIGNS THAT RACIAL VOTING IS ABATING DAVID DUKE HAS VANISHED FROM THE POLITICAL LANDSCAPE AND REPRESENTATIVE WILLIAM JEFFERSON EASILY BECAME THE STATE'S FIRST BLACK CONGRESSMAN IN NINETEEN NINETY IN A NEW ORLEANS DISTRICT JUST OVER FIFTY PERCENT BLACK BUT LOUISIANA'S LEGISLATURE CREATED A GEOGRAPHIC MONSTER THAT INCLUDES PARTS OF TWENTY EIGHT OF THE STATE'S SIXTY FOUR PARISHES OR COUNTIES AND MEANDERS ALONG THE EDGES OF THE STATE FOR SIX HUNDRED MILES ALONG THE MISSISSIPPI RIVER IT'S ONLY EIGHTY FEET WIDE IN SPOTS MR. ADAMS THE BLACK CITY COUNCILMAN FROM GRAMBLING SAYS THE DISTRICT SMACKS OF SEGREGATION HE JOINED WITH THREE WHITE PLAINTIFFS TO ARGUE IT VIOLATED THE FOURTEENTH AMENDMENT'S BAN ON RACE BASED LEGISLATION THE FEDERAL COURT AGREED NOTING THAT QUOTE EQUAL PROTECTION CANNOT MEAN ONE THING WHEN APPLIED TO ONE INDIVIDUAL AND SOMETHING ELSE WHEN APPLIED TO A PERSON OF ANOTHER COLOR QUOTE THE DECISION EVEN QUOTED GEORGE ORWELL'S ANIMAL FARM IN REJECTING THE NOTION THAT ALTHOUGH ALL ARE EQUAL UNDER THE LAW SOME ARE MORE EQUAL THAN OTHERS THIS TERM THE SUPREME COURT WILL DECIDE SEVERAL VOTING RIGHTS ACT CASES IT WILL HAVE A CHANCE TO LAY DOWN SOME FIRM GUIDELINES ON WHAT THE ACT DOES AND DOES NOT REQUIRE IN RACIAL MATTERS NO ONE ARGUES THAT RACE CAN BE IGNORED IN PUBLIC POLICY BUT WE SHOULD REJECT TRIBAL THINKING THAT CONSTANTLY EMPHASIZES THE DIFFERENCES BETWEEN PEOPLE INSTEAD OF COMMON VALUES THESE POLICIES IT'S NOW CLEAR ARE EXACERBATING SOCIAL TENSIONS AND RESENTMENTS IN THE UNITED STATES RICH YARNELL LETTER TO THE EDITOR QUOTE ETHNIC IDENTITY A PART OF TROUBLES IN ULSTER QUOTE DECEMBER FOURTEENTH IS CONFUSED ABOUT THE HISTORY OF SCOTLAND WHEN THE ROMANS VACATED BRITAIN IN THE FIFTH CENTURY THE AREA NOW KNOWN AS SCOTLAND WAS DIVIDED AMONG FOUR GROUPS ONE OF THEM THE SCOTS A WARLIKE CELTIC TRIBE FROM NORTHERN IRELAND LIVED IN DALRIADA IN THE SOUTHWEST HIGHLANDS THE PORTION OF SCOTLAND CLOSEST TO IRELAND THROUGHOUT THE NEXT FEW CENTURIES THE SCOTS OF DALRIADA MAINTAINED THEIR TIES TO THE PARENT IRISH KINGDOM IN EIGHT HUNDRED FORTY THREE THROUGH WAR AND MARRIAGE KENNETH MACALPIN KING OF DALRIADA UNITED THE LAND LYING NORTH OF THE RIVER FORTH NORTH OF THE MODERN SCOTS ENGLISH BOUNDARY THE COUNTRY ACQUIRED THE NAME OF THE IMMIGRANT IRISH CELTS ONLY TWELVE OR THIRTEEN MILES SEPARATE NORTHERN IRELAND AND WESTERN SCOTLAND THROUGHOUT HISTORY PEOPLE HAVE CROSSED OVER IN BOTH DIRECTIONS TRAVEL HAS INCREASED IN SOME PERIODS SUCH AS THE FIRST DECADE OR TWO OF THE SEVENTEENTH CENTURY FOLLOWING THE CROWNING IN ONE THOUSAND SIX HUNDRED THREE OF JAMES THE SIXTH OF SCOTLAND AS JAMES I OF ENGLAND AND DURING THE RULE IN ENGLAND OF OLIVER CROMWELL I GREW UP IN A WOOL TOWN IN THE SCOTTISH BORDERS AND NEVER HEARD OF ANY INCREASE IN THE SEVENTEENTH AND EIGHTEENTH CENTURIES ASSOCIATED WITH TROUBLE ALONG THE BOUNDARY BETWEEN SCOTLAND AND ENGLAND THAT RESULTED FROM UNION OF THE TWO COUNTRIES FORMALISED IN ONE THOUSAND SEVEN HUNDRED SEVEN TRAFFIC BETWEEN IRELAND AND SCOTLAND AND THE REST OF BRITAIN INVOLVING BOTH CATHOLICS AND PROTESTANTS HAS CONTINUED UNTIL TODAY MOST OF THE CATHOLIC POPULATION OF SCOTLAND SOME TEN PERCENT OR FIFTEEN PERCENT IS DESCENDED FROM IRISH FOREBEARS MOST OF WHOM EMIGRATED IN THE LAST ONE HUNDRED OR ONE HUNDRED FIFTY YEARS MY WIFE'S FATHER TRAVELED TO ENGLAND AROUND NINETEEN OH FIVE ENLISTED IN THE BRITISH ARMY WAS WOUNDED DURING WORLD WAR ONE AND MARRIED A SCOTTISH NURSE SUCH INTERMARRIAGE OCCURS IN NORTHERN IRELAND AS WELL SINCE THE ORIGINAL SCOTS CAME FROM IRELAND ONE THOUSAND FIVE HUNDRED TO TWO THOUSAND YEARS AGO AND THE GENE POOLS OF SCOTS AND IRISH HAVE BEEN CONTINUOUSLY INTERMINGLED EVER SINCE IT MAKES NO SENSE TO ARGUE THAT THE TWO GROUPS ARE DISTINGUISHED BY ETHNICITY IN SHORT THE WRITER OF YOUR DECEMBER FIRST EDITORIAL MAYHEM OR MAYHEW WAS CORRECT AND MR. YARNELL WRONG ABOUT THE SOURCES OF CONFLICT IN NORTHERN IRELAND WHAT SEPARATES PROTESTANTS IN NORTHERN IRELAND AND THEIR CATHOLIC NEIGHBOURS IS CULTURE RELIGION HISTORY POLITICS PROTESTANTS IN NORTHERN IRELAND DO NOT WANT TO BECOME CITIZENS OF A COUNTRY IN WHICH THE PER CAPITA INCOME IS AMONG THE LOWEST IN WESTERN EUROPE AND WHERE THE INFLUENCE OF THE CATHOLIC CHURCH IS STRONG SO THAT DIVORCE IS DIFFICULT AND LEGAL ABORTION IMPOSSIBLE REMEMBER THE CASE OF THE TEENAGE GIRL MADE PREGNANT WHEN RAPED WHO HAD TO GO TO ENGLAND TO OBTAIN AN ABORTION PROTESTANTS IN NORTHERN IRELAND WANT TO REMAIN A PART OF THE UNITED KINGDOM OF ENGLAND SCOTLAND WALES AND NORTHERN IRELAND IF CONFRONTED BY A SIMILAR CHOICE MOST AMERICANS INCLUDING MANY CATHOLICS PROBABLY WOULD REACT IN MUCH THE SAME WAY CROMPTON AND KNOWLES CORPORATION SAID FOURTH QUARTER NET INCOME ROSE SIXTY EIGHT PERCENT BOOSTED IN PART BY STRENGTH IN ITS SPECIALTY PROCESS EQUIPMENT AND CONTROLS BUSINESS AND A CHARGE IN THE YEAR EARLIER PERIOD THE STAMFORD CONNECTICUT MAKER AND MARKETER OF SPECIALTY CHEMICALS AND EQUIPMENT SAID FOURTH QUARTER PROFIT WAS TWELVE POINT FIVE MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE UP FROM SEVEN POINT FOUR MILLION DOLLARS OR FIFTEEN CENTS A SHARE IN THE YEAR EARLIER PERIOD LAST YEAR'S QUARTER INCLUDED A CHARGE OF THREE MILLION DOLLARS OR SIX CENTS A SHARE FOR THE EARLY RETIREMENT OF DEBT SALES ROSE ABOUT FOUR PERCENT TO ONE HUNDRED FORTY TWO POINT NINE MILLION DOLLARS FROM ONE HUNDRED THIRTY SEVEN POINT SIX MILLION DOLLARS FOR THE YEAR CROMPTON AND KNOWLES SAID NET ROSE FIFTY ONE PERCENT TO FIFTY ONE POINT SEVEN MILLION DOLLARS OR ONE DOLLAR A SHARE FROM THIRTY FOUR POINT FIVE MILLION DOLLARS OR SIXTY NINE CENTS A SHARE A YEAR EARLIER NINETEEN NINETY TWO RESULTS INCLUDED CHARGES TOTALING EIGHT POINT EIGHT MILLION DOLLARS OR EIGHTEEN CENTS A SHARE FOR DEBT RETIREMENT AND ACCOUNTING CHANGES SALES FOR THE YEAR ROSE NEARLY EIGHT PERCENT TO FIVE HUNDRED FIFTY EIGHT POINT THREE MILLION DOLLARS STANDARD REGISTER COMPANY CITING STEADY SALES GROWTH AND CONTINUED OPERATIONAL COST CUTTING SAID IT EXPECTS FOURTH QUARTER NET INCOME TO RISE TO ABOUT FORTY SIX CENTS A SHARE FROM FORTY THREE CENTS A YEAR EARLIER STANDARD'S PRESIDENT AND CHIEF EXECUTIVE OFFICER JOHN DARRAGH INDICATED THAT THE QUARTER'S RESULTS WOULD QUOTE BEAT QUOTE THE NINETEEN NINETY TWO QUARTER'S NET OF TWELVE POINT FIVE MILLION DOLLARS ON REVENUE OF ONE HUNDRED NINETY THREE POINT FOUR MILLION DOLLARS FOR THE YEAR MR. DARRAGH SAID HE DIDN'T TAKE EXCEPTION TO ANALYSTS' EARNINGS ESTIMATES OF ABOUT ONE DOLLAR AND FORTY SIX CENTS A SHARE COMPARED WITH NINETY CENTS IN NINETEEN NINETY TWO WHICH INCLUDED A ONE TIME ACCOUNTING CHARGE OF FORTY SEVEN CENTS NET INCOME FOR THE DAYTON OHIO DATA FORM CONCERN ROSE TO ABOUT FORTY TWO MILLION DOLLARS IN NINETEEN NINETY THREE ON REVENUE OF ABOUT SEVEN HUNDRED THIRTY MILLION DOLLARS FROM TWENTY SIX MILLION DOLLARS ON REVENUE OF SEVEN HUNDRED FIVE POINT TWO MILLION DOLLARS IN NINETEEN NINETY TWO MR. DARRAGH SAID MR. DARRAGH SAID HE EXPECTED NINETEEN NINETY FOUR NET TO BE FIVE PERCENT TO SEVEN PERCENT AHEAD OF NINETEEN NINETY THREE'S CONTRIBUTING TO THE GROWTH WILL BE CONTINUED RESTRUCTURING OF OPERATIONAL PROCESSING AND PROCEDURES A STREAMLINING DESIGNED TO AVERT SIGNIFICANT LAYOFFS FOXMEYER CORPORATION SAID ITS PROMOTION OF GENERIC PHARMACEUTICALS AND PRIVATE LABEL PRODUCTS IN INDEPENDENT PHARMACIES HELPED IMPROVE RESULTS FOR THE FISCAL THIRD QUARTER ENDED DECEMBER THIRTY FIRST THE DALLAS WHOLESALE DRUG DISTRIBUTOR JARRED BY THE AUGUST NINETEEN NINETY TWO BANKRUPTCY LAW FILING OF ITS LARGEST CUSTOMER PHAR MOR INCORPORATED REPORTED NET INCOME OF EIGHT POINT FOUR MILLION DOLLARS OR THIRTY CENTS A SHARE ON SALES OF ONE POINT THREE BILLION DOLLARS FOR THE NINETEEN NINETY TWO PERIOD FOXMEYER HAD A LOSS OF SEVENTEEN POINT SEVEN MILLION DOLLARS OR SIXTY ONE CENTS A SHARE ON SALES OF ONE POINT TWO BILLION DOLLARS THE YEAR AGO THIRD QUARTER INCLUDED A CHARGE OF FORTY TWO POINT EIGHT MILLION DOLLARS TO COVER UNPAID PHAR MOR BILLS FOR THE FIRST NINE MONTHS OF THE FISCAL YEAR FOXMEYER SAID NET INCOME TOTALED SIXTEEN POINT EIGHT MILLION DOLLARS OR SIXTY CENTS A SHARE COMPARED WITH A LOSS OF FIVE POINT THREE MILLION DOLLARS OR EIGHTEEN CENTS A SHARE A YEAR EARLIER INDEPENDENT PHARMACIES IN FOXMEYER'S QUOTE HEALTH MART QUOTE PROGRAM WHICH OFFERS ADVERTISING AND MARKETING ORDERED A BROADER PACKAGE OF SERVICES DURING THE QUARTER MAKING THE PROGRAM MORE PROFITABLE A SPOKESMAN SAID KEVIN KALKHOVEN PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED ACTING CHAIRMAN OF THIS MAKER OF LASER EQUIPMENT MR. KALKHOVEN FORTY NINE YEARS OLD SUCCEEDS DALE E. CRANE FIFTY SIX CATHERINE P. GOODRICH THIRTY SEVEN A CONSULTANT IN ATHERTON CALIFORNIA SUCCEEDS MR. CRANE ON THE BOARD U. S. AIR GROUP INCORPORATED ARLINGTON VIRGINIA SAID ITS FOURTH QUARTER LOSS NARROWED TO ONE HUNDRED SIXTEEN POINT FIVE MILLION DOLLARS FROM TWO HUNDRED FIFTY FOUR MILLION DOLLARS ON A PER SHARE BASIS U. S. AIR'S LOSS AMOUNTED TO TWO DOLLARS AND TWENTY NINE CENTS COMPARED WITH FIVE DOLLARS AND SIXTY SIX CENTS A YEAR EARLIER THE AIRLINE'S REVENUE ROSE TEN PERCENT TO ONE POINT EIGHT BILLION DOLLARS FROM ONE POINT SIX THREE BILLION DOLLARS IN THE QUARTER AS U. S. AIR'S TRAFFIC INCREASED ELEVEN POINT FOUR PERCENT AT THE SAME TIME THE COMPANY'S DEFERRAL OF CERTAIN PLANE ORDERS DROVE AIRCRAFT RENTAL COSTS DOWN FORTY THREE PERCENT TO ONE HUNDRED FIVE POINT THREE MILLION DOLLARS THE LATEST FOURTH QUARTER LOSS INCLUDED A PRETAX NONRECURRING CHARGE OF SIXTY POINT TWO MILLION DOLLARS FOR THE WRITE DOWN OF AIRPORT FACILITIES AND COSTS ASSOCIATED WITH PAYING CERTAIN WAGES BACK TO RETIREES AS PART OF A WAGE CONCESSION PROGRAM U. S. AIR SAID FOR THE YEAR U. S. AIR HAD A NET LOSS OF THREE HUNDRED NINETY THREE POINT ONE MILLION DOLLARS OR EIGHT DOLLARS AND FORTY EIGHT CENTS A SHARE COMPARED WITH A YEAR AGO LOSS OF ONE POINT TWO THREE BILLION DOLLARS OR TWENTY SEVEN DOLLARS AND TWENTY THREE CENTS A SHARE ACCOUNTING CHANGES RELATED TO POST RETIREMENT BENEFITS RESULTED IN CHARGES OF FORTY THREE POINT SEVEN MILLION DOLLARS IN NINETEEN NINETY THREE AND SIX HUNDRED TWENTY EIGHT POINT ONE MILLION DOLLARS IN NINETEEN NINETY TWO THE NINETEEN NINETY THREE RESULTS ALSO INCLUDED A CHARGE RELATED TO WORK FORCE REDUCTIONS REVENUE ROSE FIVE POINT NINE PERCENT TO SEVEN POINT OH EIGHT BILLION DOLLARS FROM SIX POINT SIX NINE BILLION DOLLARS COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE QUAKER STATE CORPORATION CITING IMPROVEMENT IN ITS VEHICLE LIGHT MANUFACTURING AND FAST LUBE UNITS SWUNG TO A PROFIT IN THE FOURTH QUARTER COMPARED WITH A LOSS IN THE YEAR AGO PERIOD THE OIL CITY PENNSYLVANIA BASED MARKETER OF MOTOR OIL AND LUBRICANTS POSTED NET INCOME OF ONE POINT NINE MILLION DOLLARS OR SEVEN CENTS A SHARE INCLUDING PRETAX CHARGES OF THREE POINT ONE MILLION DOLLARS FOR A PLANT CLOSING SEVERANCE COSTS RELATED TO A CORPORATE REORGANIZATION AND A WRITEDOWN AT ITS CREDIT LIFE AND INDEMNITY UNIT REVENUE WAS ONE HUNDRED NINETY ONE POINT NINE MILLION DOLLARS THAT COMPARES WITH A YEAR AGO LOSS OF THIRTY FIVE POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND THIRTY TWO CENTS A SHARE WHICH INCLUDED A LOSS FROM DISCONTINUED COAL OPERATIONS OF THIRTY SEVEN POINT FOUR MILLION DOLLARS OR ONE DOLLAR AND THIRTY EIGHT CENTS A SHARE REVENUE WAS ONE HUNDRED SEVENTY FOUR MILLION DOLLARS PRESIDIO OIL COMPANY DENVER SAID ITS OIL AND NATURAL GAS RESERVES GREW EIGHT POINT TWO PERCENT TO THE EQUIVALENT OF SIXTY THREE POINT FIVE MILLION BARRELS OF OIL AT THE END OF NINETEEN NINETY THREE UP FROM FIFTY EIGHT POINT SEVEN MILLION BARRELS A YEAR EARLIER THE OIL AND GAS CONCERN SAID IT ADDED THE EQUIVALENT OF NINE POINT ONE MILLION BARRELS OF OIL IN OIL AND NATURAL GAS RESERVES AT A FINDING COST OF TWO DOLLARS AND THIRTY CENTS A BARREL DURING THE YEAR PRESIDIO SAID IT PRODUCED THE EQUIVALENT OF FOUR MILLION BARRELS AND DIVESTED ITSELF OF ANOTHER THREE HUNDRED THOUSAND BARRELS ALL TOLD PRESIDIO SAID IT REPLACED TWO HUNDRED FOURTEEN PERCENT OF THE RESERVES IT PRODUCED AND DIVESTED ITSELF OF IN NINETEEN NINETY THREE AT YEAR END NINETEEN NINETY THREE PRESIDIO'S PROVED RESERVES WERE THIRTEEN MILLION BARRELS OF OIL AND THREE HUNDRED THREE BILLION CUBIC FEET OF GAS COMPARED WITH THIRTEEN POINT NINE MILLION BARRELS OF OIL AND TWO HUNDRED SIXTY EIGHT POINT NINE BILLION CUBIC FEET OF GAS AT THE END OF NINETEEN NINETY TWO THIS HOME FINANCING BANK NAMED FIVE DIRECTORS BRINGING THE BOARD TO SEVENTEEN SERVING TWO YEAR TERMS ARE ANGEL ALVAREZ PEREZ FORTY SEVEN YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FIRST FEDERAL SAVINGS BANK IN PUERTO RICO HERBERT G. CHORBAJIAN FIFTY FIVE CHAIRMAN PRESIDENT AND C. E. O. OF BOTH ALBANK FINANCIAL CORPORATION AND ITS ALBANY SAVINGS BANK UNIT ALBANY N. Y. JAMES M. LARGE JUNIOR SIXTY ONE CHAIRMAN AND C. E. O. OF ANCHOR SAVINGS BANK HEWLETT N. Y. AND GEORGE STRAYTON FIFTY PRESIDENT AND C. E. O. OF PROVIDENT SAVINGS BANK HAVERSTRAW N. Y. REESE W. FAYDE FORTY FOUR FOUNDER OF REESE FAYDE AND ASSOCIATES A NEW YORK MANAGEMENT CONSULTING FIRM WAS NAMED TO A FOUR YEAR TERM DEAN WITTER DISCOVER AND COMPANY REPORTED A SIXTY PERCENT JUMP IN FOURTH QUARTER NET INCOME ALTHOUGH TRADING REVENUE FELL THIRTEEN PERCENT THE NEW YORK SECURITIES AND CREDIT CARD COMPANY SAID NET INCOME ROSE TO ONE HUNDRED THIRTY EIGHT POINT FIVE MILLION DOLLARS OR EIGHTY ONE CENTS A SHARE FROM EIGHTY SIX POINT EIGHT MILLION DOLLARS OR FIFTY ONE CENTS A SHARE A YEAR AGO REVENUE ROSE FOURTEEN PERCENT TO ONE POINT FIVE TWO BILLION DOLLARS FROM ONE POINT THREE THREE BILLION DOLLARS THE COMPANY SAID EARNINGS FROM CREDIT SERVICE BUSINESSES ROSE SEVENTY NINE PERCENT IN THE QUARTER TO SIXTY THREE POINT SIX MILLION DOLLARS WHILE SECURITIES EARNINGS ROSE FORTY SIX PERCENT TO SEVENTY FOUR POINT NINE MILLION DOLLARS REVENUE FROM COMMISSIONS ROSE TWENTY EIGHT PERCENT TO TWO HUNDRED THIRTY SEVEN POINT ONE MILLION DOLLARS WHILE PRINCIPAL TRANSACTIONS REVENUE FELL TO EIGHTY NINE POINT FIVE MILLION DOLLARS FROM ONE HUNDRED THREE POINT THREE MILLION DOLLARS BECAUSE OF REDUCED SALES OF FIXED INCOME SECURITIES INVESTMENT BANKING REVENUE ROSE FORTY ONE PERCENT TO NINETY POINT NINE MILLION DOLLARS AND ASSET MANAGEMENT AND CUSTODIAL FEES ROSE TWENTY EIGHT PERCENT TO TWO HUNDRED TWENTY THREE POINT NINE MILLION DOLLARS JAPAN'S OPPOSITION LIBERAL DEMOCRATIC PARTY AGREED TO MEET WEDNESDAY WITH MEMBERS OF THE RULING COALITION IN AN EFFORT TO END A STALEMATE ON POLITICAL REFORM PRIME MINISTER MORIHIRO HOSOKAWA'S REFORM BILLS ALREADY WERE REJECTED ONCE BY PARLIAMENT LAST WEEK AND FEW EXPECT WEDNESDAY'S MEETING TO BE CONCLUSIVE MR. HOSOKAWA IS STRUGGLING TO TURN HIS PROPOSED REFORMS INTO LAW BEFORE THE CURRENT SESSION ENDS ON SATURDAY IF THE BILLS AREN'T PASSED BY THEN MR. HOSOKAWA MAY RESIGN OR DISSOLVE PARLIAMENT AND CALL ELECTIONS FOREIGN MINISTER TSUTOMU HATA CONCEDED TUESDAY THAT DISSOLVING PARLIAMENT IS A POSSIBILITY WEDNESDAY'S MEETING IS AIMED AT REACHING AN AGREEMENT THAT WOULD ALLOW BOTH HOUSES OF JAPAN'S PARLIAMENT TO VOTE AGAIN ON REFORM IF BOTH HOUSES PASS THE LEGISLATION BY A SIMPLE MAJORITY THE BILLS BECOME LAW WITHOUT SUCH A COMPROMISE MR. HOSOKAWA'S REMAINING OPTION IS A LAST DITCH VOTE IN THE LOWER HOUSE OF PARLIAMENT WHERE THE PRIME MINISTER MUST RECEIVE A TWO THIRDS MAJORITY TO PASS HIS REFORMS SUCH A MOVE WOULD REQUIRE THE SUPPORT OF ABOUT SEVENTY MEMBERS OF THE OPPOSITION LIBERAL DEMOCRATS WHICH ISN'T LIKELY BANC ONE CORPORATION COLUMBUS OHIO SAID ITS BOARD APPROVED THE PURCHASE OF AS MANY AS TEN MILLION SHARES OF COMMON STOCK IN ANTICIPATION OF USING IT TO ACQUIRE PREMIER BANCORP INCORPORATED BATON ROUGE LOUISIANA A SPOKESMAN FOR BANC ONE SAID THE COMPANY HASN'T DECIDED WHETHER TO EXERCISE ITS OPTION TO PURCHASE PREMIER HE ADDED HOWEVER THAT THE SHARES THE COMPANY IS PURCHASING QUOTE ARE SPECIFIED FOR THIS TRANSACTION IF IT OCCURS QUOTE IN NINETEEN NINETY TWO BANC ONE RECEIVED FEDERAL RESERVE BOARD APPROVAL TO ACQUIRE A LARGE STAKE IN THEN TROUBLED PREMIER BANC ONE AT THE TIME PURCHASED SIXTY FIVE MILLION DOLLARS OF NEWLY ISSUED PREMIER CAPITAL NOTES AND RECEIVED THE OPTION TO ACQUIRE PREMIER BETWEEN JUNE THIRTIETH NINETEEN NINETY FIVE AND MARCH THIRTY FIRST NINETEEN NINETY SEVEN PREMIER HAS ASSETS OF FOUR POINT TWO BILLION DOLLARS BANC ONE HAS SEVENTY NINE POINT NINE BILLION DOLLARS IN ASSETS SEPARATELY BANC ONE APPROVED A TEN PERCENT STOCK DIVIDEND PAYABLE MARCH FOURTH TO STOCK OF RECORD FEBRUARY SIXTEENTH THE REGULAR QUARTERLY DIVIDEND OF THIRTY ONE CENTS A SHARE WILL BE PAID MARCH THIRTY FIRST TO STOCK OF RECORD MARCH FIFTEENTH BANC ONE SAID THE CASH DIVIDEND WILL BE PAID ON THE NEW SHARES RESULTING FROM THE STOCK DISTRIBUTION MARK OLESNAVAGE FORTY YEARS OLD WAS NAMED PRESIDENT O. T. C. PHARMACEUTICAL OPERATIONS EFFECTIVE FEBRUARY FIRST OF THIS MAKER OF STORE BRAND PHARMACEUTICAL AND PERSONAL CARE ITEMS SEQUOIA SYSTEMS INCORPORATED IN A STRONG COMEBACK SAYS IT WILL REPORT FISCAL SECOND QUARTER NET INCOME OF TWO POINT FOUR MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE COMPARED WITH A YEAR EARLIER LOSS OF NINETEEN POINT SIX MILLION DOLLARS OR TWO DOLLARS AND THIRTY TWO CENTS A SHARE COMPANY OFFICIALS SAID REVENUE IN THE SECOND QUARTER ENDED JANUARY SECOND WILL TOTAL ELEVEN POINT ONE MILLION DOLLARS UP FROM ELEVEN POINT OH MILLION DOLLARS A YEAR AGO SEQUOIA OFFICIALS SAID IN AN INTERVIEW QUOTE THE COMPANY HAS ABSOLUTELY BEEN TURNED AROUND FROM BEING ON DEATH'S DOOR TO BEING A VERY STABLE PROFITABLE HIGHLY LIQUID CASH POSTIVE COMPANY AND DEBTFREE QUOTE SAID NEIL MCMULLAN PRESIDENT AND CHIEF EXECUTIVE OFFICER A LITTLE OVER A YEAR AGO THE MARLBOROUGH MASSACHUSETTS BASED MAKER OF FAULT TOLERANT COMPUTERS WAS NEAR BANKRUPT AND LOOKING FOR A BUYER IN A SMALL CONFERENCE ROOM AT I. B. M. HEADQUARTERS HERE JEROME B. YORK THE NEW FINANCE CHIEF CONFRONTS TWO NERVOUS EXECUTIVES FROM THE DISK DRIVE DIVISION AND PUMMELS THEM WITH QUESTIONS WHY MR. YORK DEMANDS DOES THE DIVISION SPLIT ITS DEVELOPMENT TEAM BETWEEN ROCHESTER N. Y. AND SAN JOSE CALIFORNIA WHY DOES IT SHIP PARTS TO A PLANT IN MEXICO ONLY TO RESHIP PARTIALLY ASSEMBLED DRIVES BACK TO SAN JOSE WHEN TRANSPORT COSTS ARE QUOTE EATING US ALIVE QUOTE AND WHERE IS THE DATA THE EXECUTIVES HAD PROMISED TO PROVIDE ON COMPETITORS ABOVE ALL MR. YORK ZEROES IN ON BLOATED INVENTORY WHY DOES THE DIVISION HAVE ABOUT A BILLION DOLLARS WORTH OF UNSOLD PRODUCT SITTING AROUND TYING UP CASH AND RIPE FOR THEFT OR DAMAGE I. B. M. HAS EIGHT POINT FIVE BILLION DOLLARS IN INVENTORY ON ITS BALANCE SHEET HE TELLS THE PAIR IN A POLITE MEMPHIS DRAWL WHERE I COME FROM THAT'S UNACCEPTABLE WE ALREADY GOT PEOPLE WALKING AND CHEWING BUBBLE GUM AT THE SAME TIME AROUND HERE BUT IN THE NEXT YEAR WE'RE GOING TO START WORKING ON INVENTORY ONE EXECUTIVE REPLIES THAT THE HIGH INVENTORY LEVEL ISN'T HIS DIVISION'S FAULT HE BLAMES THE PERSONAL COMPUTER DIVISION WHICH WAITS TOO LONG TO TAKE DELIVERY BUT MR. YORK ISN'T MOLLIFIED BY THE TIME HE FINISHES WITH THE PAIR PATINAS OF SWEAT GLISTEN ON THEIR FOREHEADS LESS THAN A YEAR AGO JEROME YORK WORKED IN THE WORLD OF DISK BRAKES RATHER THAN DISK DRIVES HELPING TURN AROUND CHRYSLER CORPORATION BY SHAVING FOUR BILLION DOLLARS IN ANNUAL EXPENSES THEN HE TOOK ON THE BIGGER CHALLENGE OF REPAIRING INTERNATIONAL BUSINESS MACHINES CORPORATION SINCE COMING TO I. B. M. LAST MAY HE HAS SET REDUCTIONS OF FIVE BILLION DOLLARS A YEAR WITH ALREADY ANNOUNCED MOVES TO CUT FORTY FIVE THOUSAND JOBS SHUT MYRIAD PLANTS AND SELL OFF REAL ESTATE OVER THE NEXT THREE YEARS NOW MR. YORK MUST WHITTLE ALMOST TWO BILLION DOLLARS MORE BY FOCUSING ON THE SMALL STUFF FERRETING OUT INEFFICIENCIES AND FUNDAMENTALLY CHALLENGING BUSINESS PRACTICES LOCKED IN DECADES OF DIE HARD HABITS THERE'S A LOT OF WASTE IN THIS COMPANY I. B. M.'S NEW CHIEF FINANCIAL OFFICER SAYS WE'RE GOING TO FIND IT AND ROOT IT OUT AS HE PURSUES THIS CRUSADE HOWEVER HIS CHANCES OF SUCCESS ARE MIXED THE FAR FLUNG I. B. M. EMPIRE IS MORE COMPLEX MORE DECENTRALIZED AND POSSIBLY IN MORE TROUBLE THAN CHRYSLER WAS ALTHOUGH MR. YORK CONTENDS THE AUTO MAKER WAS IN WORSE SHAPE MR. YORK MUST KNIT TOGETHER THE SPENDING PRACTICES OF DISPARATE DIVISIONS THAT PRIZE THEIR AUTONOMY HE CAN'T HACK AWAY TOO BOLDLY AT SUCH CHERISHED I. B. M. PERKS AS EMPLOYEE COUNTRY CLUBS AND FETES FOR TOP SALESPEOPLE EVEN THOUGH SUCH FRILLS AT A COMPANY WITH I. B. M.'S PROBLEMS HAVE RAISED EYEBROWS HE ALSO MUST PUSH TO CHANGE A COMPANY ONCE RENOWNED FOR A TORPID MANAGEMENT STYLE AND TIME SAPPING CONSENSUS DECISION MAKING THE FORMER AUTO EXECUTIVE MOREOVER MUST TAKE ON ALL OF THIS WHILE BEING REGARDED AS A TECHNO NEOPHYTE AND A STRANGER BY DOZENS OF LIFELONG IBMERS WHOM HE MUST ENLIST IN HIS EFFORT MR. YORK'S PREOCCUPATION WITH COSTS AND HIS LACK OF HIGH TECH BASICS CLEARLY RANKLE SOME CURRENT AND RECENTLY DEPARTED IBMERS OTHERS CONTEND HOWEVER THAT ONLY AN OUTSIDER CAN USHER IN THE NEW ERA OF CUTBACKS AND COLDHEARTED REALITY THAT BIG BLUE REQUIRES THERE ARE SOME SIGNS THAT MR. YORK'S FOCUS ON CUTTING BACK IS CATCHING ON YESTERDAY I. B. M. REPORTED FOURTH QUARTER NET INCOME OF THREE HUNDRED EIGHTY TWO MILLION DOLLARS OR SIXTY TWO CENTS A SHARE ITS FIRST QUARTERLY PROFIT IN MORE THAN A YEAR EVEN IF MR. YORK SUCCEEDS AT IMPOSING FURTHER CUTS HOWEVER THEY ALONE WON'T BRING I. B. M. BACK THE NEW MANAGEMENT TEAM LED BY CHAIRMAN LOUIS V. GERSTNER MUST DEVELOP SOURCES OF REVENUE TO OFFSET THE DECLINE OF THE MAINFRAME BUSINESS THIS POINT WAS MADE PAINFULLY CLEAR YESTERDAY WHEN I. B. M. SURPRISED INVESTORS BY REPORTING A SMALL REVENUE DECLINE FOR THE FOURTH QUARTER TYPICALLY ITS STRONGEST I. B. M. STOCK CLOSED AT FIFTY EIGHT DOLLARS AND TWENTY FIVE CENTS DOWN THIRTY SEVEN POINT FIVE CENTS A SHARE AS THE NEW YORK STOCK EXCHANGE'S MOST ACTIVE ISSUE ON THE SURFACE JEROME YORK LOOKS LIKE A CLASSIC IBMER HE IS A SLENDER SILVERHAIRED FIFTY FIVE YEAR OLD WHO WEARS WHITE STIFFLY STARCHED SHIRTS BENEATH APPROPRIATELY DARK SUITS BUT AT BIG BLUE HE IS AN EXECUTIVE OF AN ENTIRELY DIFFERENT COLOR THE SON OF AN ARMY OFFICER HE ATTENDED WEST POINT AND DREAMED OF SERVING IN THE AIR FORCE BUT A GYMNASTICS INJURY WHEN HE WAS A FRESHMAN LANDED HIM IN TRACTION FOR SIX MONTHS AND KEPT HIM FROM SERVING SO HE WAS GRADUATED EARNED AN ENGINEERING DEGREE FROM MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND AN M. B. A. FROM THE UNIVERSITY OF MICHIGAN AND WENT TO WORK FOR FORD MOTOR COMPANY AND THEN HERTZ CORPORATION HE JOINED CHRYSLER IN NINETEEN SEVENTY NINE AND SOON DREW ATTENTION AS A DEMANDING WORKAHOLIC A MAN WHO MORE THAN ONCE FAINTED AFTER AN ALL NIGHT SESSION FUELED BY COFFEE AND NICOTINE MR. YORK HAS BEEN MARRIED FOUR TIMES HIS PRESENT WIFE WAS ALSO WIFE NUMBER TWO IMPATIENT AND EASILY BORED HE SAYS THE ONLY MOVIES HE CAN BEAR TO SIT THROUGH FEATURE LOTS OF BULLETS AND CLINT EASTWOOD QUOTE DIRTY HARRY QUOTE IT SEEMS OUTDRAWS QUOTE AGE OF INNOCENCE QUOTE IN A HOBBY HARRY HIMSELF WOULD ADMIRE MR. YORK HAS OWNED SEVEN MOTORCYCLES GIVING UP THE LAST ONE ONLY RECENTLY AS HIS PERIPHERAL VISION STARTED TO FADE AT I. B. M. MR. YORK HAS WON EARLY REGARD AS A BLUNT NO NONSENSE MANAGER WHO SPICES HIS LANGUAGE WITH SO MANY FOUR LETTER WORDS THAT SOME SUBORDINATES HAVE ADOPTED HIS FOUL MOUTHED LEXICON IF YOU DON'T DELIVER FOR JERRY OBSERVES I. B. M. CHIEF STRATEGIST JAMES CANNAVINO SOMEBODY HAD BETTER BE PREPARING FOR YOUR PASSAGE INTO THE NEXT LIFE ONE JANUARY MORNING AFTER A HEAVY SNOWSTORM CREATED BAD ROAD CONDITIONS MR. YORK NONETHELESS CHIDED HIS STAFF FOR TRICKLING INTO THE OFFICE LATE HE HIMSELF WAS AT HIS DESK BY EIGHT A. M. AFTER ATTACHING A SNOWPLOW TO HIS DODGE PICKUP AND LITERALLY PLOWING HIS WAY FROM HIS HOME IN CONNECTICUT TO HEADQUARTERS IN ARMONK MR. YORK CONFRONTS I. B. M.'S PROBLEMS JUST AS DIRECTLY TO FIND OUT HOW BIG BLUE WORKS AND HOW MUCH NEEDS TO BE DONE HE CRISSCROSSES THE COMPANY'S GLOBAL OPERATIONS AND VISITS FACTORY FLOORS NO DETAIL SEEMS TOO SMALL TO MERIT HIS SCRUTINY ON A RECENT DAY HE HEADED FOR AUSTIN TEXAS ABOARD A COMPANY LEARJET ONE OF ONLY SEVEN JETS LEFT OF THE THIRTEEN PLANE FLEET BEFORE HE ARRIVED HE WANTS TO SELL OFF A FEW MORE HE WAS ABOUT TO TOUR THE PLANTS THAT MAKE A NEW LINE OF POWERPC COMPUTERS AND WORKSTATIONS TWO AREAS CRITICAL TO I. B. M.'S FUTURE BUT LESS THAN AN HOUR INTO HIS FLIGHT HE WAS FUMING OVER ENVELOPES HE HAD OPENED AN OVERSIZED BROWN ENVELOPE MARKED I. B. M. CONFIDENTIAL AND PULLED OUT A MEMO THAT HARDLY SEEMED WORTH ANY SECRECY NOW THERE'S WASTE FOR YOU HE SAID FLICKING THE ENVELOPE OVER TO HIS EXECUTIVE ASSISTANT MARIE WIECK I WANT TO KNOW HOW MANY OF THESE WE USE IF THEY BUY ANY MORE I'M NOT GOING TO PAY FOR THEM EASIER SAID THAN DONE EIGHT WEEKS LATER MS. WIECK WAS STILL MIRED IN BIDS AND DISCUSSIONS OVER ENVELOPES IT TURNS OUT THAT I. B. M. USES FIVE SECURITY LEVELS FOR ENVELOPES UNCLASSIFIED INTERNAL CONFIDENTIAL CONFIDENTIAL RESTRICTED AND REGISTERED SHE MUST DECIDE WHETHER THAT ARRAY CAN BE CONSOLIDATED INTO ONE REUSABLE ENVELOPE WHETHER IT WOULD COST LESS TO USE ENVELOPES THAT CAN BE RESEALED SEVERAL TIMES BEFORE THEY ARE THROWN AWAY OR WHETHER I. B. M. NEEDS ANY CONFIDENTIAL ENVELOPES THERE ALSO IS A QUESTION OF SIZE MS. WIECK STILL HASN'T OBTAINED THE LARGE VS.SMALL BREAKDOWN SHE NEEDS THE POTENTIAL SAVINGS I. B. M. BUYS THREE MILLION OF THE MOST COMMONLY USED QUOTE CONFIDENTIAL QUOTE ENVELOPES LIKE THE ONE THAT MIFFED MR. YORK AT A COST OF SEVENTY FIVE THOUSAND DOLLARS A YEAR THE REST COMBINED ADD UP TO EVEN LESS ONWARD TO AUSTIN WHERE MR. YORK DONNED A STERILIZED BUNNY SUIT AND ENTERED THE CLEAN ROOM WHERE WORKERS TURN OUT GLASS FIBER CIRCUIT BOARDS THERE SOUNDING A BIT LIKE KIDDIE HOST MR. ROGERS ON A FACTORY TOUR MR. YORK SHOWED HIMSELF TO BE AN EAGER STUDENT HE WATCHED THE PROCESS KEENLY ASKING QUESTIONS ABOUT WHAT THE ROLLERS DO THEY PRESS A RESIN INTO THE BOARDS AND ABOUT WHY A METAL PLATE IS INSERTED BETWEEN THE COPPER LAYERED BOARDS IT KEEPS THEM CLEAN AND DRIVES DOWN THE HEAT IN THE BAKING PROCESS HE WAS SOON MAKING SUGGESTIONS AND ASKING MANAGERS TO JUSTIFY THE WAY THEY DO THINGS WHY SO MUCH PROCESSING BEFORE THE BOARD GETS TO THE CUTTER IT HAS ALWAYS BEEN DONE THIS WAY HE IS TOLD HOW MUCH SCRAP IS THROWN AWAY AT THE END OF THE PROCESS TEN PERCENT CAN IT BE REDUCED YES AT THE END OF IT ALL MR. YORK FELT CONFIDENT ENOUGH TO CHALLENGE PLANT MANAGER BILL AMELIO'S ASSERTION THAT IN FIVE YEARS AT THE OPERATION PUTTING OUT TEN THOUSAND CIRCUIT BOARDS A DAY NOT ONE BOARD HAS BEEN RETURNED FOR DEFECTS IT'S THE BEST PLANT IN THE WORLD MR. AMELIO SAID PROUDLY BEFORE THE SMALL GROUP TOURING WITH THE NEWCOMER FROM ARMONK MR. YORK DIDN'T BUY IT FRANKLY I JUST DON'T BELIEVE YOU HE SHOT BACK A NUMBERS MAN HE VIEWED THE CLAIM AS STATISTICALLY IMPOSSIBLE AND TOLD HIS HOSTS YOU MAY NOT BE GETTING ALL THE DATA BACK THAT RANKLED THE SITE'S TOP MANAGER JERRY CARLSON WHO WEEKS LATER REFUSED TO ACCEPT MR. YORK'S PREMISE MR. YORK JUST DOESN'T UNDERSTAND WHAT WE'VE DONE HERE MR. CARLSON SAID IN AN INTERVIEW LATER MR. YORK PRAISED THE WORK OF THE PLANT MANAGER MR. AMELIO IN A SMALL GATHERING BUT HE ISSUED A WARNING ABOUT THE PLANT'S FUTURE QUOTE MAKING CIRCUIT CARDS IS A BUSINESS I. B. M. DOESN'T HAVE TO BE IN STRATEGICALLY QUOTE THE C. F. O. TOLD THE GROUP AT SOME POINT YOU'LL WALL OUT IN THIS FACILITY NEED TO EXPAND AND WHEN YOU ASK FOR THIRTY MILLION DOLLARS TO REBUILD YOU'LL HAVE TO SHOW US YOU'RE HIGHLY COMPETITIVE TO MR. YORK I. B. M. HAS NO OTHER CHOICE BUT TO RE EXAMINE THE BASICS OF ALMOST EVERYTHING IT DOES HE LIKENS HIS JOB TO MANAGING A FAMILY CHECKBOOK I. B. M.'S MARGINS HAVE FALLEN BY THE EQUIVALENT OF THIRTEEN BILLION DOLLARS IN ANNUAL OPERATING PROFIT YET EVEN IN A MASSIVE RESTRUCTURING THE COMPANY HAD CUT ONLY THREE BILLION DOLLARS IN ANNUAL EXPENSES BY THE TIME HE CAME IN I. B. M. IS LIVING WAY OVER ITS HEAD HE SAYS THE TEN BILLION DOLLAR GAP BETWEEN DECLINING PROFITS AND STUBBORN COSTS HELPED DRIVE I. B. M. INTO THE RED FOR TWO CONSECUTIVE YEARS AND KNOCK DOWN ITS STOCK PRICE BY TWO THIRDS IN NINETEEN NINETY TWO I. B. M.'S COSTS AMOUNTED TO FORTY TWO PERCENT OF REVENUE COMPARED WITH THIRTY ONE PERCENT ON AVERAGE FOR RIVALS TO RIGHT THAT IMBALANCE MR. YORK HAS SNIPPED AWAY AT SOME OBVIOUSLY EXPENDABLE ITEMS GONE IS THE ANNUAL CHRISTMAS PARTY FOR THE PRESS AT THE NEW YORK PLAZA SAVINGS ABOUT TEN THOUSAND DOLLARS I. B. M. NO LONGER RENTS AN ENTIRE FLOOR OF THE PARK TOWER ON MADISON AVENUE IN MANHATTAN ACROSS THE STREET FROM ITS OWN OFFICE TOWER FOR PRODUCT INTRODUCTIONS SAVINGS ONE MILLION DOLLARS AND THOUGH IT ISN'T EASY THE OUTSIDER FROM CHRYSLER HAS MANAGED TO TRIM A BIT HERE AND THERE IN THE RECOGNITION EVENTS FOR TOP EMPLOYEES NOW INSTEAD OF STAGING ELEVEN SEPARATE GATHERINGS FOR SALESPEOPLE WHO EXCEED THEIR QUOTAS AND JOIN THE GOLDEN CIRCLE I. B. M. WILL HOLD FOUR INSTEAD OF FANCY FIVE STAR RESORTS SUCH AS THE BREAKERS IN PALM BEACH FLORIDA I. B. M. SALESMEN THIS MARCH WILL STAY AT ORLANDO'S BUENA VISTA PALACE IN BROADER STROKES MR. YORK SUMMARILY TRIMMED ONE BILLION DOLLARS FROM I. B. M.'S FAT SEVEN BILLION DOLLAR RESEARCH AND DEVELOPMENT BUDGET HE CONSOLIDATED THE PURCHASE OF PAPER CLIPS PENS AND PAPER AND ALMOST EVERYTHING BUT MANUFACTURING MATERIALS SAVING ABOUT FIVE MILLION DOLLARS A YEAR WITH BULK ORDERS AND FEWER PEOPLE INSTEAD OF SENDING OUT INSTRUCTION MANUALS THE SIZE OF THE NEW YORK CITY PHONE BOOK I. B. M. NOW SENDS INSTRUCTIONS ELECTRONICALLY SAVING FIFTY MILLION DOLLARS IN PRINTING COSTS MR. YORK HAS EVEN TAKEN A WHACK AT SOME SACRED ITEMS I. B. M.'S UNLIMITED BENEFICENCE TO EMPLOYEES PRESENT AND PAST IS GONE RAISES WERE SMALLER LAST YEAR EMPLOYEES ARE CONTRIBUTING MORE TO THEIR HEALTH PLANS AFTER LAST JULY FIRST THE EARLY RETIREMENT PACKAGE WAS HALVED TO A MAXIMUM OF TWENTY SIX WEEKS OF PAY MEDICAL BENEFITS FOR LAID OFF WORKERS WERE CUT TO AT MOST SIX MONTHS OF COVERAGE AFTER LEAVING I. B. M. DOWN FROM ONE YEAR HOWEVER ADDITIONAL CUTS MAY PROVE HARDER TO FIND MR. YORK MUST COPE WITH I. B. M.'S LONG HELD NOTION THAT IT ALONE MUST PROVIDE EVERYTHING FROM SOUP TO NUTS FOR ITS CUSTOMERS PUTTING THE COMPANY IN A LOT OF LOW MARGIN PRODUCTS HE SPENDS A LOT OF HIS TIME FORCING FEUDING DIVISIONS TO COOPERATE IN HIS DRIVE TO ELIMINATE REDUNDANT EXPENSES AND INEFFICIENT PRACTICES ONE EXAMPLE AT A BUDGET MEETING HE FOUND THAT THE DIVISION THAT MAKES AS SLASH FOUR HUNDRED WORKSTATIONS PLANNED TO CHURN OUT TEN THOUSAND MORE MACHINES THAN THE MARKETING DIVISION WAS PROMISING TO SELL HE ASKED NICELY THAT THE TWO DIVISIONS AGREE ON HOW MANY THEY WOULD SELL FOR THE SAKE OF CONSISTENCY AND TO CUT DOWN ON THE INVENTORY PROBLEM THE RIVAL EXECUTIVES SAID IT COULDN'T BE DONE MR. YORK GOT TOUGHER SAYING IT COULD ULTIMATELY IT WAS MR. YORK ALSO QUESTIONS WHY I. B. M. SHOULD MAKE SO MANY OF THE PARTS FOR ITS PRODUCTS IT CONTRACTS OUT ONLY ABOUT FIFTY PERCENT OF ITS MANUFACTURING COSTS COMPARED WITH THE AUTO INDUSTRY'S AVERAGE OF SEVENTY PERCENT YOU CAN'T MANUFACTURE EVERY NUT AND BOLT THAT GOES INTO YOUR HARDWARE BECAUSE SOMEBODY CAN DO THAT BETTER THAN YOU CAN HE SAYS THE IBMERS HE VISITED AT THE AUSTIN PLANT HOWEVER DON'T NECESSARILY SEE IT THAT WAY ON HIS RECENT TRIP MR. YORK REACHED THE ASSEMBLY LINE FOR R. S. SLASH SIX THOUSAND COMPUTERS AND WAS STRUCK BY HOW SMALL IT IS COMPARED WITH DETROIT'S SIX MILE LONG PRODUCTION LINES THE MANAGERS IN AUSTIN ARE OBSESSIVE TESTERS RUNNING MACHINES THROUGH SEVEN DIFFERENT CHECKS TO LOOK FOR BUGS THEN WHEN THE WORKSTATIONS ARE ASSEMBLED ONE OUT OF TEN IS SENT OUT FOR A RANDOM SPOT CHECK A REAL QUOTE LIFESAVER QUOTE ONE MANAGER EXPLAINED MR. YORK HOWEVER COULDN'T COMPREHEND THE REASON FOR SO MUCH TESTING IT'S INCREDIBLE TO ME THAT WITH ALL THE TESTING YOU DO YOU THEN HAVE TO CHECK ONE OUT OF TEN HE TOLD THE PLANT TEAM AND THAT TEST IS A LIFESAVER BECAUSE OTHERWISE WE WOULDN'T KNOW HE ADDED POINTEDLY THE ANSWER ELECTRONIC PRODUCTS ARE DELICATE MORE DELICATE THAN MOST MECHANICAL PARTS THAT GO INTO CARS AFTER ALL THE PIECES ARE ASSEMBLED LOADED WITH SOFTWARE AND PLUGGED INTO THE WALL SOMETIMES ALL THE PARTS DON'T WORK TOGETHER BUT MR. YORK WASN'T SATISFIED HE TOLD THE TEAM I HAVE A PROBLEM IN THAT EVERYWHERE I GO IN THE COMPANY I'M TOLD DEFECTS ARE FALLING BUT WHEN I LOOK AT THE BOOKS I DON'T SEE WARRANTY COSTS FALLING NO SOONER DID HE FINISH QUESTIONING WARRANTIES THAN HE STUMBLED ON ANOTHER QUAGMIRE SPOTTING ROWS OF BOXED UP R. S. SLASH SIX THOUSANDS WAITING TO BE SHIPPED OUT HE ASKED HOW MUCH THE PLANT IS CHARGED BY I. B. M.'S MARKETING DIVISION FOR HANDLING THE SHIPMENTS TO CUSTOMERS THE ANSWER A STIFF SEVEN HUNDRED DOLLARS A BOX FOR A MACHINE THAT IS JUST A LITTLE LARGER THAN A DESKTOP P. C. YOU GUYS ARE GETTING HOSED MR. YORK COUNTERED WITH A CHUCKLE HE SUGGESTED THAT THE PLANT CHECK SHIPPING RATES AT COMMERCIAL CARRIERS SUCH AS UNITED PARCEL SERVICE TO GATHER EVIDENCE FOR FORCING THE MARKETING DIVISION TO REDUCE ITS CHARGE MR. CARLSON THE SITE MANAGER SAID A TASK FORCE WAS TACKLING THE PROBLEM FOR YEARS I. B. M.'S MARKETING DIVISION HAS CHARGED FREIGHT DUTY AND SHIPPING COSTS BY REGION INSTEAD OF BY PRODUCT SO DIVISIONS THAT SHIP FEWER HIGHER PRICED MACHINES SUCH AS THE R. S. SLASH SIX THOUSAND PAY MORE PER MACHINE THAN SAY I. B. M. PERSONAL COMPUTER COMPANY WHICH SHIPS TENS OF THOUSANDS MORE UNITS AND PAYS FIFTY DOLLARS EACH LATER MR. CARLSON SAID THE REVIEW PROMPTED I. B. M. MARKETING TO HALVE ITS SEVEN HUNDRED DOLLAR PER BOX CHARGE TO THREE HUNDRED FIFTY DOLLARS FURTHER DICKERING HAS CUT IT TO TWO HUNDRED TWENTY FOUR DOLLARS THAT STILL IS FAR HIGHER THAN COMMERCIAL SHIPPING HOWEVER WHICH RUNS NINETY DOLLARS FOR TWO DAY DELIVERY HE SAYS HE HOPES TO BARGAIN FOR AN EVEN LOWER CHARGE THE NIGHT OF MR. YORK'S VISIT THE AUSTIN EXECUTIVES WENT HOME IMBUED WITH HIS TOUGH TALKING AND PROFANE STYLE THE WIFE OF ONE ENDED UP ASKING HER HUSBAND WHY ALL OF A SUDDEN HE HAD STARTED MAKING LIBERAL USE OF THE QUOTE F. WORD QUOTE HE EXPLAINED IT'S JERRY'S FAVORITE WORD TRUE TO STYLE MR. YORK WAS UP AT DAWN THE NEXT MORNING READY TO FLY TO BOULDER COLORADO TO SEE I. B. M.'S SOFTWARE PRODUCTION FACILITIES PLANT OFFICIALS ZOOMED HIM TO A CONFERENCE ROOM WHERE A TABLE WAS LAID OUT WITH A SILVER SERVICE FOR COFFEE FRESH FRUIT AND PASTRIES THIS WAS PRETTY LAVISH BY I. B. M.'S FRUGAL NEW STANDARDS AT A RECENT MEETING AT A MAINFRAME CENTER IN NEW YORK STATE MANAGERS HAD TO PAY FOR THEIR OWN COFFEE AND DOUGHNUTS MR. YORK SKIPPED THE FRUIT IN FAVOR OF THE PASTRIES HELPED HIMSELF TO YET ANOTHER CUP OF COFFEE AND SAT DOWN FOR A PRESENTATION BUT THE MEETINGS WENT ON AND ON MR. YORK FIDGETED AS ONE EXECUTIVE KATHY HOWELL DELIVERED A SPIEL ABOUT THE TECHNOLOGY FOR DELIVERING SOFTWARE ELECTRONICALLY HIS HINTS OF IMPATIENCE WEREN'T NOTICED AND WHEN SHE TRIED TO EXPLAIN A GRAPHIC DETAILING THE COST PER MEGABYTE OF ZAPPING SOFTWARE OVER PHONE LINES HE ERUPTED I WANT TO GET OFF THAT SLIDE HE SAID STERNLY CUTTING TO THE CHASE WHERE DO YOU WANT TO TAKE THIS BUSINESS GET ME TO THE END AND TELL ME WHERE YOU WANT TO GO MS. HOWELL DIRECTOR OF WORLD WIDE SOFTWARE PACKAGING THEN LAUNCHED INTO A DISCUSSION OF NETWORKING TOOLS FURTHER EXASPERATING MR. YORK WHO BELIEVES I. B. M. SPENDS TOO MUCH TIME ON THE NUTS AND BOLTS AND DOESN'T FOCUS ENOUGH ON WHERE IT CAN GAIN A PRODUCT EDGE AS A COMPANY HE TOLD HIS HOSTS WE'RE STILL WORRYING TOO MUCH ABOUT WHETHER THE SPAGHETTI INSIDE IS FIBER OR CABLE WE NEED TO FOCUS ON WHERE WE CAN ADD VALUE MS. HOWELL GAVE UP AND SAT DOWN QUOTE HE PICKED ON ME QUOTE SHE SAID LATER ALTHOUGH SHE UNDERSTANDS MR. YORK'S GRIPE SPARE HIM THE ARCANE DETAILS GIVE HIM THE BROAD STRATEGY WE'LL NEVER MAKE THAT MISTAKE AGAIN SHE SAID THE NEXT EXECUTIVE DIDN'T FARE MUCH BETTER AS HE TRIED TO EXPLAIN A NEW C. D. ROM SYSTEM THAT LETS CUSTOMERS DOWNLOAD A PROGRAM FROM VARIOUS TITLES WITHOUT GOING TO A COMPUTER STORE MR. YORK WASN'T IMPRESSED TEN MINUTES INTO LUNCH HE SAID HE WAS READY TO FLY BACK TO ARMONK ON THE PLANE MR. YORK RELAXED A BIT CHEWED SOME GUM AND SIPPED MORE COFFEE HE PLANNED TO HEAD BACK TO HEADQUARTERS AND CRUNCH SOME MORE NUMBERS ALTHOUGH IT WAS ALREADY APPARENT THE TRIP HADN'T YIELDED ANY PARTICULAR COST CUTTING BREAKTHROUGHS BUT THAT'S ALL RIGHT HE SAID THERE'S NO MAGIC BULLET IT'S GOING TO BE A LITTLE HERE AND A LITTLE THERE NASHUA CORPORATION SAID IT WILL MAKE A PAYMENT OF ONE POINT THREE MILLION DOLLARS PLUS INTEREST TO GESTETNER HOLDINGS P. L. C. FOR AN ARBITRATOR'S RULING ON CLAIMS ASSOCIATED WITH NASHUA'S SALE OF ITS INTERNATIONAL OFFICE SYSTEMS BUSINESS TO GESTETNER NASHUA SAID IT WILL RECOGNIZE A GAIN FROM DISCONTINUED OPERATIONS OF TWO POINT FIVE MILLION DOLLARS OR FORTY CENTS A SHARE IN THE FOURTH QUARTER FROM THE RESOLUTION OF THE CLAIM THE NASHUA N. H. COMPANY HAD BEEN REQUIRED TO DEFER RECOGNITION OF ANY GAIN OR LOSS FROM THE SALE PENDING THE RESOLUTION NASHUA A COMPUTER AND OFFICE PRODUCTS CONCERN SOLD THE OFFICE SYSTEMS BUSINESS IN NINETEEN NINETY FOR TWO HUNDRED TWO MILLION DOLLARS WHICH INCLUDED FIFTY ONE MILLION DOLLARS IN DEBT ASSUMED BY GESTETNER GESTETNER QUESTIONED THE FINAL VALUATION RESULTING IN EIGHTEEN POINT TWO MILLION DOLLARS IN CLAIMS SUBMITTED FOR ARBITRATION THE COMPANY REPORTED EARNINGS OF TWO POINT TWO MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE ON SALES OF ONE HUNDRED FORTY FIVE POINT TWO MILLION DOLLARS FOR THE FOURTH QUARTER ENDED DECEMBER THIRTY FIRST NINETEEN NINETY TWO THE RESULTS INCLUDED A GAIN OF NINE HUNDRED THOUSAND DOLLARS FOR THE SETTLEMENT OF LITIGATION WITH MINISCRIBE CORPORATION AND ONE POINT TWO MILLION DOLLARS FROM THE SALE OF STOCK TIME WARNER INCORPORATED'S CHIEF EXECUTIVE OFFICER GERALD LEVIN SAID IT DOESN'T INTEND AT PRESENT TO ADD A REPRESENTATIVE TO ITS BOARD FROM SEAGRAM COMPANY WHICH LAST WEEK RAISED ITS TIME WARNER STAKE TO ELEVEN POINT SEVEN PERCENT FROM TEN POINT FOUR PERCENT MR. LEVIN SAID AT A NEWS CONFERENCE THAT SEAGRAM QUOTE HASN'T ASKED TO JOIN AND WE HAVEN'T INVITED THEM QUOTE MR. LEVIN WAS THE KEYNOTE SPEAKER AT THE NATIONAL ASSOCIATION OF TELEVISION PROGRAM EXECUTIVES CONFERENCE HERE THERE HAS BEEN SPECULATION ON WALL STREET THAT TIME WARNER IS UNDER PRESSURE TO ADD ONE OR MORE SEAGRAM'S MEMBERS TO ITS BOARD BUT MR. LEVIN SAID THAT IN THE LAST YEAR TIME WARNER HAS REDUCED THE SIZE OF ITS BOARD TO FIFTEEN FROM TWENTY FOUR AND WILL LIKELY CUT IT FURTHER TO TEN TO TWELVE MEMBERS OUR PROGRAM AND PLAN IS TO CONTINUE TO PROBABLY REDUCE THE SIZE OF THAT BOARD AND NOT INCREASE IT HE SAID SEAGRAM HAS MAINTAINED THAT ITS INVESTMENT IN TIME WARNER IS FRIENDLY TO MANAGEMENT AND MR. LEVIN SAID WE CERTAINLY TAKE THEM AT THEIR WORD BUT THE DAY AFTER SEAGRAM INCREASED ITS STAKE TIME WARNER ANNOUNCED A NEW POSION PILL PLAN THAT EFFECTIVELY LIMITS AN OUTSIDE INVESTOR'S OWNERSHIP TO FIFTEEN PERCENT SEAGRAM WHICH HAS SAID IT WILL BUY AS MUCH AS TO FIFTEEN PERCENT CRITICIZED THE MOVE SEPARATELY A HOLDER SUIT CHARGING THAT TIME WARNER DIRECTORS AND OFFICERS BREACHED THEIR FIDUCIARY DUTY BY ADOPTING ENTRENCHMENT MEASURES WITH THE POISON PILL WAS FILED YESTERDAY IN DELAWARE CHANCERY COURT TIME WARNER SAID IT FEELS THERE'S NO BASIS FOR THE SUIT ANDERSON EXPLORATION LIMITED SAID IT AGREED TO SELL THREE POINT FIVE MILLION COMMON SHARES TO A GROUP OF CANADIAN UNDERWRITERS FOR THIRTY ONE CANADIAN DOLLARS TWENTY THREE DOLLARS AND SIXTY THREE CENTS A SHARE THE CALGARY ALBERTA OIL AND GAS PRODUCER SAID NET PROCEEDS OF ONE HUNDRED FOUR POINT TWO MILLION CANADIAN DOLLARS AFTER EXPENSES AND UNDERWRITING FEES WILL BE USED TO FINANCE GAS DEVELOPMENT PROJECTS AND REDUCE BANK DEBT THE TRANSACTION WOULD RAISE THE NUMBER OF ANDERSON SHARES OUTSTANDING TO ABOUT TWENTY EIGHT POINT TWO MILLION FROM TWENTY FOUR POINT SEVEN MILLION THE SHARES CLOSED YESTERDAY AT THIRTY ONE CANADIAN DOLLARS DOWN SEVENTY FIVE CANADIAN CENTS IN TRADING ON THE TORONTO STOCK EXCHANGE ANDERSON'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER DAVID SCOBIE SAID HE EXPECTS THE COMPANY TO CUT ITS LONG TERM BANK DEBT TO BETWEEN EIGHTY MILLION CANADIAN DOLLARS AND NINETY MILLION CANADIAN DOLLARS BY ITS SEPTEMBER THIRTIETH FISCAL YEAR END FROM ONE HUNDRED FORTY ONE POINT FIVE MILLION CANADIAN DOLLARS CURRENTLY RUBBERMAID INCORPORATED SAID IT WILL INVEST MORE THAN TEN MILLION DOLLARS TO BUILD A PRODUCTION PLANT FOR ITS LITTLE TIKES PLASTIC TOYS IN DIFFERDANGE LUXEMBOURG RUBBERMAID BASED IN WOOSTER OHIO SAID IT ALSO WILL CONSTRUCT AT THE DIFFERDANGE SITE A DISTRIBUTION FACILITY FOR ITS LITTLE TIKES OFFICE PRODUCTS AND COMMERCIAL PRODUCTS BUSINESSES RUBBERMAID SAID IT WANTS TO INCREASE THE LEVEL OF NON U. S. REVENUE TO TWENTY FIVE PERCENT OF THE TOTAL FROM FIFTEEN PERCENT BY TWO THOUSAND THE COMPANY HAD SALES OF ABOUT ONE POINT EIGHT BILLION DOLLARS IN NINETEEN NINETY TWO A YEAR AFTER TWO WEST COAST CHILDREN DIED FROM EATING TAINTED HAMBURGER AGRICULTURE SECRETARY MIKE ESPY IS EXPECTED TODAY TO ANNOUNCE STEPS TO REDUCE CHANCES OF SIMILAR OUTBREAKS HIS RECOMMENDATIONS ARE LIKELY TO INCLUDE A MUCH TOUGHER MEAT INSPECTION SYSTEM THAT RELIES MORE ON SCIENTIFIC TESTING AND LESS ON VISUAL EXAMINATION WHILE MR. ESPY'S OFFICE WOULDN'T COMMENT ON SPECIFIC PROPOSALS AIDES BILLED THE ANNOUNCEMENT AT A FOOD SAFETY SEMINAR IN NEW YORK TONIGHT AS QUOTE SIGNIFICANT QUOTE ADDING QUOTE IF THERE'S ONE THING HE'S ADAMANT ABOUT IT'S TO CHANGE THE INSPECTION SYSTEM AT ALL LEVELS QUOTE THE SECRETARY TOOK OFFICE AMID WIDESPREAD CONCERN ABOUT THE SAFETY OF MEAT AFTER THE FATALITIES LINKED TO UNDERCOOKED HAMBURGER SERVED AT JACK IN THE BOX FAST FOOD RESTAURANTS THE DEATHS WERE CAUSED BY THE BACTERIA E.COLI ZERO ONE FIVE SEVEN H. SEVEN WHICH SINCE HAS BEEN BLAMED FOR HUNDREDS OF ILLNESSES NATIONWIDE MR. ESPY RECENTLY WAS BRIEFED BY U. S. D. A. SCIENTISTS ON A RAPID DETECTION TEST FOR E.COLI AND OTHER FOOD BORNE PATHOGENS AS WELL AS ANTIBACTERIAL SPRAYS THAT COULD BE USED ON CARCASSES IN MEAT PROCESSING PLANTS AIDES SAY KURT B. KARMIN SIXTY FIVE YEARS OLD WAS NAMED A MANAGING DIRECTOR AT THIS INTERNATIONAL INVESTMENT FIRM'S CHICAGO OFFICE MR. KARMIN IS FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE BROKERAGE FIRM RODMAN AND RENSHAW IN CHICAGO WORLD TRADE GROWTH SLOWED TO LESS THAN THREE PERCENT IN NINETEEN NINETY THREE FROM FOUR PERCENT IN NINETEEN NINETY TWO MAINLY BECAUSE OF A DECLINE IN THE FLOW OF GOODS ACROSS BORDERS IN WESTERN EUROPE WHICH ACCOUNTS FOR FORTY SEVEN PERCENT OF THE GLOBAL ACTIVITY BUT PRODUCTION GROWTH DOUBLED TO AN ESTIMATED TWO PERCENT THE GENERAL AGREEMENT ON TARIFFS AND TRADE SAID AT THE MULTILATERAL TRADE GROUP'S ANNUAL MEETING IN GENEVA SHARP GROWTH LAST YEAR IN AREAS SUCH AS NORTH AMERICA WHICH ACCOUNTS FOR EIGHTEEN PERCENT OF THE WORLD TOTAL AND ASIA INCLUDING CHINA COULDN'T OFFSET THE TRADE DECLINE AMONG SLUGGISH EUROPEAN ECONOMIES TRADE IN THE EUROPEAN UNION FORMERLY THE EUROPEAN COMMUNITY WAS THE MOST DEPRESSED BECAUSE OF AILING SECTORS SUCH AS AUTOS WESTERN EUROPEAN ECONOMIES SHOWED SIGNS OF RECOVERY IN THE NINETEEN NINETY THREE FOURTH QUARTER AND CONSUMERS AND INVESTORS IN RECESSION HIT ECONOMIES COULD REGAIN CONFIDENCE BOLSTERED BY THE RECENT NORTH AMERICAN AND WORLD TRADE LIBERALIZATION AGREEMENTS A G. A. T. T. OFFICIAL SAID A JAPANESE COURT ORDERED TWELVE FACTORIES IN TOKYO'S INDUSTRIAL BELT TO PAY A TOTAL OF SIX POINT FIVE MILLION DOLLARS TO ONE HUNDRED SIX AREA RESIDENTS AS COMPENSATION FOR ILLNESSES FROM TAINTED AIR THOUGH THE KAWASAKI COURT HELD THE FIRMS RESPONSIBLE FOR AIR POLLUTION IT DISMISSED DEMANDS THAT THEY REDUCE PLANT EMISSIONS THE SECOND SUCH RULING IN JAPAN WHICH ENCOURAGES INDUSTRIAL DEVELOPMENT THE NINETEEN EIGHTY TWO LAWSUIT HAD BEEN FILED BY ONE HUNDRED TWENTY EIGHT RESIDENTS SEEKING TWENTY THREE POINT SIX MILLION DOLLARS IN COMPENSATION AND TIGHTER POLLUTION CONTROLS THE COURT ALSO REJECTED A CLAIM THAT AUTO EXHAUST CONTRIBUTED TO THE POLLUTION AND HEALTH PROBLEMS THUS RELIEVING THE GOVERNMENT AND HIGHWAY OPERATORS OF LIABILITY CHINA'S COMMUNIST PARTY ORDERED TOUGH CONTROLS ON THE MEDIA SAYING QUOTE IDEOLOGICAL RECTITUDE QUOTE IS ESSENTIAL TO THE RULING PARTY'S POWER AND SUCCESS WITH ECONOMIC REFORMS PROPAGANDA OFFICIALS NATIONWIDE ARE TO BE INDOCTRINATED TO GUIDE PUBLIC OPINION ABOUT THE SWEEPING SHIFT TO A SO CALLED SOCIALIST MARKET ECONOMY ALLOWING FURTHER REFORMS AS THE GOVERNMENT HAS OVERHAULED ITS TAX AND BANKING SYSTEM LIBERALIZED PRICES AND CUT SUBSIDIES IT ALSO HAS FACED THREATS TO ITS AUTHORITY FROM DISAFFECTION WITH HIGH INFLATION CHRONIC CORRUPTION AND ECONOMIC DISLOCATIONS JUST SIXTEEN POINT THREE PERCENT OF JAPANESE COMPANIES ALLOW EMPLOYEES LEAVE TO CARE FOR ILL OR ELDERLY FAMILY MEMBERS UP ONLY SLIGHTLY FROM FOURTEEN POINT ONE PERCENT THREE YEARS AGO A LABOR MINISTRY SURVEY FOUND BUT FIFTY ONE PERCENT OF THE EIGHT THOUSAND FIRMS WITH AT LEAST THIRTY WORKERS OFFER CHILD CARE LEAVES WITH JAPANESE SOCIETY AGING RAPIDLY THE MINISTRY HAS BEEN PREPARING LEGISLATION ON NURSING LEAVES WITH JOB PROTECTION THESE LEAVES ARE MORE COMMON AT LARGE COMPANIES AND SCARCE AT SMALL AND MIDSIZE FIRMS THOUGH A NINETEEN NINETY ONE LAW REQUIRES CHILD CARE LEAVES IT LACKS A PENALTY FOR ANY VIOLATIONS SO COMPLIANCE HAS BEEN SLOW PRIME MINISTER BENAZIR BHUTTO OPENED PAKISTAN'S FIRST ALL FEMALE POLICE STATION AS PART OF HER CAMPAIGN FOR EQUAL RIGHTS FOR WOMEN ABOUT FIFTY FEMALE OFFICERS STAFF THE RAWALPINDI STATION JOINING PUNJAB'S PROVINCIAL FORCE OF EIGHTY FIVE THOUSAND MEN AT THE SAME PAY SCALES MRS. BHUTTO SAID FINANCIAL INDEPENDENCE IS THE KEY TO DETERRING ABUSES OF WOMEN IN THE PREDOMINANTLY ISLAMIC MALE DOMINATED SOCIETY WHERE WOMEN TYPICALLY GET LESS EDUCATION THAN MEN AND MARRY EARLY MRS. BHUTTO HAS PROMISED TO PUT WOMEN IN TEN PERCENT OF TOP POLICE POSTS AND ON THE COUNTRY'S HIGHEST COURT AND TO SET UP SPECIAL COURTS FOR CASES AGAINST WOMEN ABOUT FIFTY THOUSAND CONDOMINIUMS WILL BE OFFERED FOR SALE IN THE TOKYO AREA THIS YEAR A THIRTEEN PERCENT INCREASE FROM LAST YEAR AND THE HIGHEST TOTAL SINCE NINETEEN EIGHTY THREE A PRIVATE RESEARCH FIRM ESTIMATED INCLUDING UNSOLD CONDOS THAT WERE PUT ON THE MARKET LAST YEAR THE TOTAL SUPPLY THIS YEAR WILL INCREASE SEVEN PERCENT TO FIFTY SIX THOUSAND SEVEN HUNDRED THE HASEKO CORPORATION GENERAL RESEARCH INSTITUTE SAID DEMAND IS EXPECTED TO BE BRISK BECAUSE OF RECORD LOW MORTGAGE RATES PUBLIC SECTOR UNIONS IN PORTUGAL SAID AT LEAST EIGHTY FIVE PERCENT OF THEIR SIX HUNDRED THIRTY THOUSAND MEMBERS STAGED A ONE DAY STRIKE OVER PAY THE GOVERNMENT SAID THE ESTIMATE WAS EXAGGERATED THE WALKOUT CLOSED SCHOOLS AND HALTED PUBLIC TRANSIT AND MOST HOSPITAL SERVICES THE UNIONS HINTED AT A GENERAL STRIKE IF THE CENTER RIGHT GOVERNMENT REFUSED TO INCREASE ITS OFFER OF A TWO PERCENT PAY RAISE FOR NINETEEN NINETY FOUR WHEN ANNUAL INFLATION IS TARGETED BETWEEN FOUR PERCENT AND FIVE POINT FIVE PERCENT SAYING THE TWO PERCENT OFFER WOULD BE CANCELED BY A TWO PERCENT INCREASE IN WORKERS' PENSION CONTRIBUTIONS THE UNIONS WANT WAGES BOOSTED AT LEAST SIX PERCENT THE GOVERNMENT REITERATED IT WOULDN'T BUDGE SAYING ECONOMIC RECOVERY AND JOB CREATION HINGE ON WAGE MODERATION IN BOLIVIA A ONE DAY GENERAL STRIKE TO DEMAND A HIGHER MINIMUM WAGE AND PROTEST GOVERNMENT PLANS TO LET PRIVATE INVESTORS BUY AS MUCH AS HALF OF STATE OWNED COMPANIES GOT ONLY LIMITED SUPPORT UNIONS THEN AGREED TO OPEN TALKS WITH THE ECONOMICALLY CONSERVATIVE GOVERNMENT WHICH HAD DECLARED THE NATIONAL STRIKE ILLEGAL COMMERCIAL AND RESIDENTIAL RENTS IN HONG KONG WILL INCREASE AT LEAST TEN PERCENT THIS YEAR A PROPERTY AGENCY ESTIMATED OFFICE RENTS LAST YEAR SOARED THIRTY NINE PERCENT AS DEMAND QUICKLY ABSORBED AVAILABLE SPACE A CANADIAN ARBITRATION PANEL RULED THAT AN EMPLOYEE OF TORONTO'S HOUSING AGENCY WHO DIDN'T TURN UP FOR WORK BECAUSE HE HAD A HANGOVER IS ENTITLED TO SICK PAY AMPHENOL CORPORATION A COMBINED PRIMARY AND SECONDARY OFFERING OF ITS CLASS A COMMON STOCK VIA MERRILL LYNCH AND COMPANY LEHMAN BROTHERS INCORPORATED AND SMITH BARNEY SHEARSON INCORPORATED BORROR CORPORATION AN OFFERING OF TWO MILLION COMMON SHARES VIA MCDONALD AND COMPANY SECURITIES INCORPORATED AND OHIO COMPANY FIDELITY ASIA EMERGING MARKETS FUND INCORPORATED AN OFFERING OF FOUR MILLION COMMON SHARES VIA DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION AND MERRILL LYNCH AND COMPANY MORGAN STANLEY GROUP INCORPORATED A SHELF OFFERING FOR THREE BILLION DOLLARS OF DEBT SECURITIES WARRANTS TO PURCHASE DEBT SECURITIES AND PREFERRED SHARES VIA MORGAN STANLEY AND COMPANY NATURAL MICROSYSTEMS CORPORATION AN OFFERING OF ONE POINT FOUR MILLION COMMON SHARES AT AN ESTIMATED PRICE OF EIGHT DOLLARS TO TEN DOLLARS A SHARE VIA FIRST ALBANY CORPORATION A UNIT OF FIRST ALBANY COMPANIES AND PENNSYLVANIA MERCHANT GROUP LIMITED NPS PHARMACEUTICALS INCORPORATED AN OFFERING OF TWO POINT FIVE MILLION COMMON SHARES VIA PAINEWEBBER INCORPORATED AND VECTOR SECURITIES INTERNATIONAL INCORPORATED RUST OLEUM CORPORATION A CLOSELY HELD MAKER OF PROTECTIVE COATINGS SAID THE FAMILY THAT OWNS NINETY PERCENT OF THE COMPANY HIRED LEHMAN BROTHERS TO FIND A BUYER RUST OLEUM OF VERNON HILLS ILLINOIS HAD REVENUE OF ABOUT ONE HUNDRED THIRTY TWO MILLION DOLLARS IN THE YEAR ENDED OCTOBER THIRTY FIRST NINETEEN NINETY THREE AND ITS OPERATING PROFIT HAS RISEN IN EACH OF THE PAST FIVE YEARS THE COMPANY SAID IT WOULDN'T DISCLOSE EARNINGS OR AN ASKING PRICE FOR THE COMPANY DONALD C. FERGUSSON CHAIRMAN AND PRESIDENT AND A MEMBER OF THE CONTROLLING FAMILY SAID THAT ALIGNING RUST OLEUM WITH A LARGER COMPANY COULD HELP BRING THE RESOURCES NEEDED FOR FURTHER GROWTH THE COMPANY WAS FOUNDED IN NINETEEN TWENTY ONE AND SELLS ITS PAINT PRODUCTS THROUGH THIRTY FIVE THOUSAND RETAIL OUTLETS THE COMPANY EMPLOYS FOUR HUNDRED SIXTY FIVE PEOPLE AND HAS MANUFACTURING PLANTS IN WISCONSIN MARYLAND AND OKLAHOMA ANADARKO PETROLEUM CORPORATION SAID ITS ENERGY RESERVES GREW BY SIX POINT THREE PERCENT TO THE EQUIVALENT OF THREE HUNDRED NINETY ONE MILLION BARRELS OF OIL AT THE END OF NINETEEN NINETY THREE UP FROM THREE HUNDRED SIXTY EIGHT MILLION A YEAR EARLIER THE HOUSTON OIL AND NATURAL GAS COMPANY SAID ITS FINDING COST WAS THREE DOLLARS AND FIFTY FIVE CENTS A BARREL COMPARED WITH FOUR DOLLARS AND SIXTY ONE CENTS A BARREL IN NINETEEN NINETY TWO ANADARKO SAID IT PRODUCED THE EQUIVALENT OF THIRTY SEVEN POINT FIVE MILLION BARRELS IT REPLACED SIXTY POINT SIX BARRELS OR ONE HUNDRED SIXTY TWO PERCENT OF THE RESERVES PRODUCED IN NINETEEN NINETY THREE ANADARKO REPORTED PROVEN RESERVES ON DECEMBER THIRTY FIRST OF ONE POINT EIGHT EIGHT TRILLION CUBIC FEET OF NATURAL GAS AND SEVENTY EIGHT POINT FIVE MILLION BARRELS OF OIL CONDENSATE AND NATURAL GAS LIQUIDS COMPARED WITH ONE POINT SEVEN THREE TRILLION CUBIC FEET OF NATURAL GAS AND EIGHTY POINT THREE MILLION BARRELS OF OIL CONDENSATE AND NATURAL GAS LIQUIDS AT THE END OF NINETEEN NINETY TWO GENERAL ELECTRIC COMPANY'S G. E. INDUSTRIAL AND POWER SYSTEMS UNIT RECEIVED ORDERS TOTALING MORE THAN ONE HUNDRED TWENTY MILLION DOLLARS TO PROVIDE POWER GENERATION EQUIPMENT FOR PROJECTS IN EGYPT AND SAUDI ARABIA HOMECARE MANAGEMENT INCORPORATED SIGNED A LETTER OF INTENT TO ACQUIRE THE MURRAY GROUP PITTSBURGH FOR A TOTAL PRICE OF SEVENTEEN MILLION DOLLARS THE AMOUNT INCLUDES SEVEN POINT FIVE MILLION DOLLARS IN CASH EIGHT POINT FIVE MILLION DOLLARS IN COMMON STOCK PLUS A ONE MILLION DOLLAR CASH BONUS IF PERFORMANCE GOALS FOR THE YEAR ENDING APRIL THIRTIETH NINETEEN NINETY FIVE ARE MET SPECTRANETICS CORPORATION COLORADO SPRINGS COLORADO AGREED TO ACQUIRE ADVANCED INTERVENTIONAL SYSTEMS INCORPORATED FOR ABOUT SEVENTEEN POINT TWO MILLION DOLLARS IN STOCK TWO MONTHS AFTER THE MEDICAL PRODUCTS COMPANIES BACKED AWAY FROM A SIMILAR MERGER ACCORD VENCOR INCORPORATED HAS ACQUIRED CLAY MEMORIAL HOSPITAL GREEN COVE SPRINGS FLORIDA FROM CLAY COUNTY HOSPITAL AUTHORITY ALSO BASED IN GREEN COVE SPRINGS TERMS WEREN'T DISCLOSED SYBASE INCORPORATED WILL ACQUIRE FOR TWENTY FIVE MILLION DOLLARS IN STOCK OR FIVE HUNDRED FIFTY THOUSAND SHARES ALL OF THE CAPITAL STOCK OUTSTANDING OF MICRO DECISIONWARE INCORPORATED A BOULDER COLORADO DATABASE COMPANY THAT IS MAJORITY OWNED BY SAFEGUARD SCIENTIFICS WAYNE PENNSYLVANIA PAXAR CORPORATION PEARL RIVER N. Y. FORMED A SUBSIDIARY IN POLAND TO PRODUCE GARMENT LABELS AND TO SELL ITS COMPLETE LINE OF PRINTING MACHINES AND MATERIALS BOUYGUES S. A. A LEADING EUROPEAN PUBLIC WORKS AND CONSTRUCTION CONCERN SAID IN PARIS THAT LOSSES INCURRED BY ITS PROPERTY DIVISION HELPED TO PUSH ITS CONSOLIDATED NET PROFIT DOWN THIRTY FOUR PERCENT IN NINETEEN NINETY THREE TO ABOUT FOUR HUNDRED FIFTY MILLION FRANCS SEVENTY FIVE POINT NINE MILLION DOLLARS THE ESTIMATED FIGURE IS MUCH LOWER THAN HAD BEEN EXPECTED BY EQUITY ANALYSTS WHO HAD BEEN PROJECTING A FIGURE CLOSER TO FIVE HUNDRED SIXTY MILLION FRANCS APART FROM THE WEAKNESS OF ITS PROPERTY DIVISION WHICH IS ESTIMATED TO HAVE INCURRED A LOSS OF ABOUT ONE HUNDRED FIFTY MILLION FRANCS LAST YEAR COMPARED WITH A PROFIT OF NINETY ONE MILLION FRANCS IN NINETEEN NINETY TWO THE GROUP'S OTHER BUSINESSES PERFORMED WELL IN A DIFFICULT ENVIRONMENT INCREASING THEIR SHARES OF IMPORTANT MARKETS SEVERAL BIG AIRLINES MATCHED TWO FARE PROMOTIONS THAT OFFER MAJOR DISCOUNTS FOR DOMESTIC TRAVEL ONE OF THE LIMITED TIME PROMOTIONS LAUNCHED YESTERDAY BY TRANS WORLD AIRLINES OFFERED DISCOUNTS OF AS MUCH AS THIRTY FIVE PERCENT T. W. A. BASED IN MOUNT KISCO N. Y. SAID THE LOWER PRICED TICKETS WILL BE GOOD THROUGH MAY FIFTEENTH FOR TRAVEL IN THE CONTINENTAL U. S. TO HAWAII AND SAN JUAN PUERTO RICO A SEPARATE PROMOTION ALSO INITIATED BY T. W. A. OFFERS LOWER FARES TO FLORIDA FROM NEW YORK PHILADELPHIA BOSTON AND WASHINGTON THE ROUND TRIP FARES FROM ONE HUNDRED NINETY EIGHT DOLLARS TO TWO HUNDRED FIFTY EIGHT DOLLARS DEPENDING ON THE WEEKDAY OFFER SAVINGS OF AS MUCH AS FORTY FIVE PERCENT T. W. A. SAID THOSE FARES ARE GOOD FOR TRAVEL THROUGH FEBRUARY FIFTEENTH UNDER BOTH PROGRAMS WHICH REQUIRE SATURDAY NIGHT STAYS AND ADVANCE PURCHASES TICKETS MUST BE BOUGHT BY FRIDAY THE NATION'S THREE LARGEST CARRIERS U. A. L. CORPORATION'S UNITED AIRLINES A. M. R. CORPORATION'S AMERICAN AIRLINES AND DELTA AIR LINES ALL SAID THEY WOULD MATCH THE PROMOTIONS SOMETIMES WITH DIFFERENCES IN RULES AND RESTRICTIONS IN MARKETS WHERE THEY COMPETE WITH T. W. A. THE GERMAN MARK SPENT MOST OF THE DAY GETTING KICKED AROUND BY ITS FOREIGN COUNTERPARTS GAINING ONLY AGAINST THE DOLLAR AS THE U. S. CURRENCY AGAIN FAILED TO BREAK A KEY TECHNICAL LEVEL BEHIND THE MARK'S DECLINE WAS CONTINUED BAD FEELINGS ABOUT GERMANY'S ECONOMIC SITUATION TRADERS SAID AND THE PERCEPTION THAT THE BUNDESBANK ISN'T READY TO FUEL GROWTH BY LOWERING INTEREST RATES ANY TIME SOON LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FOUR NINE SIX MARKS DOWN FROM ONE POINT SEVEN FIVE OH EIGHT MARKS LATE MONDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED TEN POINT NINE OH YEN DOWN FROM ONE HUNDRED ELEVEN POINT SEVEN OH YEN STERLING WAS TRADING AT ONE POINT FOUR NINE FOUR FIVE DOLLARS VIRTUALLY UNCHANGED FROM ONE POINT FOUR NINE FOUR SIX DOLLARS ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED TEN POINT FIVE OH YEN AND AT ONE POINT SEVEN FOUR SIX FIVE MARKS EXACERBATING THE GERMAN CURRENCY'S PROBLEMS WAS BULLISH NEWS ELSEWHERE THE MARK LOST GROUND AGAINST THE ITALIAN LIRA AS A NEW POLITICAL COALITION FORMED IN ROME AND IT SANK AGAINST SWEDEN'S KRONA ON STRONG CURRENT ACCOUNT DATA FROM STOCK HOLM THE MARK ALSO FELL AGAINST THE BELGIAN AND SPANISH CURRENCIES AFTER THOSE TWO COUNTRIES CUT INTEREST RATES THE MARK WAS SO OUT OF FAVOR THAT IT EVEN LOST VALUE AGAINST THE YEN DESPITE NEW RUMORS THAT JAPAN'S GOVERNMENT MIGHT BE HEADING FOR A FALL MEANWHILE TWO KEY BUNDESBANK MEMBERS AGAIN EXPRESSED DETERMINATION TO KEEP INTEREST RATES STEADY VICE PRESIDENT JOHANN WILHELM GADDUM SAID CUTS WOULD NOT BE EVEN CONSIDERED UNTIL GROWTH IN GERMANY'S M. THREE MONEY SUPPLY CAME CLOSER TO THE BANK'S FOUR PERCENT TO SIX PERCENT ANNUAL GROWTH TARGET DECEMBER M. THREE DATA THE RELEASE OF WHICH HAS BEEN DELAYED UNTIL NEXT WEEK IS EXPECTED TO SHOW GROWTH AS HIGH AS SEVEN POINT TWO PERCENT REIMUT JOCHIMSEN A MEMBER OF THE BUNDESBANK'S POLICY COMMITTEE SAID STA BILITY OF THE MARK WAS AN ESSENTIAL INGREDI ENT IN GERMANY'S ECONOMIC RECOVERY IM PLYING THAT RATE CUTS THAT MIGHT LOWER THE MARK'S VALUE WOULD NOT BE CONSIDERED BUT CARL AMENDOLA A VICE PRESIDENT AT BAYERISCHE HYPOTHEKEN AND WECHSEL BANK IN NEW YORK SAID THE MARKET WAS ALREADY SURE THAT THE BUNDESBANK WOULD BE FORCED TO CUT RATES AND THAT THE GERMANS WEREN'T DOING THEMSELVES A FAVOR BY DELAYING IT QUOTE THE LONGER THEY WAIT THE DEEPER THE CUT WILL HAVE TO BE QUOTE MR. AMENDOLA SAID THE MARK WAS ABLE TO GAIN AGAINST THE DOLLAR WHICH BOUNCED LOWER AFTER AGAIN FAILING TO BREAK THROUGH ONE POINT SEVEN FIVE FIVE OH MARKS TRADERS SAID THERE WAS A STRONG PERCEPTION THAT MAJOR SELLERS PERHAPS CENTRAL BANKS ADJUSTING THEIR RESERVES WERE ACTIVE AT THAT LEVEL AT THE SAME TIME THERE IS ACTIVE INTEREST TO HOLD THE DOLLAR WHICH IS UNLIKELY TO FALL BELOW ONE POINT SEVEN THREE FIVE OH MARKS THEY SAID DESPITE THE MARK'S GAINS AGAINST THE DOLLAR THE GERMAN CURRENCY SANK AGAINST SUCH FORMER EUROPEAN WEAKLINGS AS THE SPANISH PESETA AND BELGIAN FRANC LATE IN NEW YORK THE MARK WAS TRADING AT AROUND EIGHTY POINT EIGHT THREE PESETAS COMPARED WITH EIGHTY ONE POINT TWO SEVEN PESETAS LATE MONDAY AND AT TWENTY POINT SEVEN THREE BELGIAN FRANCS DOWN FROM TWENTY POINT EIGHT TWO FRANCS MONDAY ON MONDAY SPAIN CUT ITS BENCHMARK INTEREST RATE TO EIGHT POINT SEVEN FIVE PERCENT FROM NINE PERCENT BELGIUM WHICH ALSO HAS BEEN BESET BY POLITICAL PROBLEMS CUT ITS MAIN INTEREST RATE FOR MONEY MARKET LENDING TO SEVEN PERCENT FROM SEVEN POINT ONE OH PERCENT MR. AMENDOLA SAID THOSE CUTS CHEERED THE MARKET AND GENERATED INTEREST IN THE FRANC AND PESETA THE SMALLER EUROPEAN COUNTRIES ARE BEING VERY PRO ACTIVE ABOUT THEIR ECONOMIES HE SAID THEY'RE ON THEIR WAY FAST TO HAVING A MUCH STRONGER ECONOMY THAN THE GERMANS THE BUNDESBANK'S MR. JOCHIMSEN BRUSHED OFF SUGGESTIONS THE MARK LOOKED PALLID RATHER HE SAID EUROPEAN CURRENCIES WHICH HAD BEEN UNDERVALUED WERE SIMPLY REGAINING THEIR PROPER LEVELS INDEED ONE OF THE DAY'S BIGGEST WINNERS WAS THE ITALIAN LIRA THE MARK FELL TO NINE HUNDRED SEVENTY ONE LIRE LATE IN NEW YORK TRADING FORM NINE HUNDRED SEVENTY FOUR LIRE LATE MONDAY SUPPORTING THE LIRA WAS NEWS THAT A NEW SEEMINGLY VIABLE CENTRIST PARTY HAD BEEN FORMED AHEAD OF ITALY'S MARCH ELECTIONS THE LIRA HAS BEEN SOLD HEAVILY IN RECENT MONTHS ON WORRIES ABOUT WHO WOULD BE IN POWER FOLLOWING THE RECENT CORRUPTION SCANDALS THE SWEDISH KRONA CONTINUED ITS COMEBACK AGAINST THE MARK TRADING AT ABOUT FOUR POINT FIVE SEVEN EIGHT FOUR KRONOR LATE IN NEW YORK COMPARED WITH FOUR POINT SEVEN TWO ONE FOUR KRONOR LATE MONDAY WHEN WE FIRST LOOKED INTO THE PECULIAR CASE OF THE ALABAMA STURGEON BACK IN NOVEMBER THE FISH HADN'T BEEN SPOTTED IN NEARLY A DECADE NEVERTHELESS THE U. S. FISH AND WILDLIFE SERVICE WAS PRESSING AHEAD IN ITS QUEST FOR AN ENDANGERED SPECIES LISTING EVEN THOUGH THE U. S. ARMY CORPS OF ENGINEERS WARNED THAT A LISTING MIGHT FORCE IT TO CURTAIL DREDGING ALONG SOME OF THE SOUTH'S BUSIEST COMMERCIAL WATERWAYS THE UNSPOTTED STURGEON WAS IN DANGER OF BECOMING THE NEXT SPOTTED OWL PROMPTING ALABAMA'S ENTIRE CONGRESSIONAL DELEGATION TO COME OUT AGAINST A LISTING A COUPLE OF WEEKS AFTER OUR EDITORIAL THE FRANTIC ANGLING OF THE GOVERNMENT'S BIOLOGISTS PAID OFF THEY CAUGHT ONE QUOTE WHAT THIS DOES IS REMOVE ANY DOUBT THAT THE FISH STILL EXISTS QUOTE EXULTED JAMES STEWART OF THE FISH AND WILDLIFE BUREAUCRACY WITH THE FISH NOW IN THEIR HANDS SCIENTISTS WERE WITHIN STRIKING DISTANCE OF SOLVING ANOTHER CONUNDRUM OF THE SORT THAT NOW OCCUPIES THE ENERGIES OF THE U. S. POLITICAL SYSTEM WHETHER THE ALABAMA STURGEON REALLY REPRESENTS A RARE AND DISTINCT SPECIES FROM THE MISSISSIPPI SHOVELNOSE WHICH IS NEARLY IDENTICAL AND FROLICS IN ABUNDANCE IN WATERS FROM NORTH DAKOTA TO NEW ORLEANS OOPS ON NEW YEAR'S EVE THE PRIZED SPECIMEN WAS FOUND FLOATING BELLY UP IN ITS HOLDING POND CURIOUSLY THE PUBLIC WASN'T NOTIFIED UNTIL SOME FOUR DAYS LATER AND WHILE IT MAY BE PREMATURE TO CALL FOR AN INDEPENDENT COUNSEL OTHER SUSPICIOUS CIRCUMSTANCES ATTENDED THE FAMOUS FISH'S BRIEF LIFE IN FEDERAL CUSTODY ONE QUESTION CONCERNS HOW FWS EVEN KNEW IT HAD A NON SHOVELNOSE ON ITS HANDS THREE FRIENDLY BIOLOGISTS WERE BROUGHT IN TO MATCH THE FISH UP AGAINST THE NINETEEN NINETY ONE ARTICLE IN THE BULLETIN OF THE ALABAMA MUSEUM OF NATURAL HISTORY THAT FIRST DUBBED THE HOMETOWN STURGEON AS A DIFFERENT CRITTER FROM THE SHOVELNOSE ONE OF THE SPECIALISTS SCOTT METTEE OF THE ALABAMA GEOLOGICAL SURVEY TELLS US THAT THE ACTUAL MEASUREMENTS JIBED WITH THE STANDARDS LAID OUT IN THE ARTICLE THOUGH WHETHER EYEBALL DIAMETERS AND SCALE COUNTS CAPTURE VARIATION WITHIN RATHER THAN BETWEEN SPECIES IS IN THE EYE OF THE BEHOLDER WHILE THE STURGEON LIVED ITS CAPTORS REBUFFED SEVERAL REQUESTS FOR A BLOOD SAMPLE FROM THE CORPS OF ENGINEERS THIS SEEMS STRANGE FOR JOINTLY THE CORPS AND FWS HAVE DEVELOPED A LARGE DATABASE ON THE BLOOD GENETICS OF THE MISSISSIPPI SHOVELNOSE AND A SAMPLE MIGHT HAVE SHOWN HOW CLOSELY THE BREEDS WERE RELATED WE WERE SHOCKED THAT THE SPECIMEN DIED AND WE MISSED AN OPPORTUNITY TO OBTAIN BLOOD TISSUE BRIAN PECK OF THE CORPS' MOBILE OFFICE TELLS US WHAT'S MORE THE DEAD STURGEON WAS IMMEDIATELY WRAPPED IN PAPER NOT THE JOURNAL AS FAR AS WE CAN FIND OUT AND FROZEN SPEEDING THE BREAKDOWN OF BLOOD PROTEINS AND AMINO ACIDS IT TOOK A FULL WEEK AFTER ITS SPIRIT HAD ASCENDED TO FISH HEAVEN BEFORE OUTSIDERS WERE EVEN ALLOWED TO EXAMINE THE CADAVER AND THEN ONLY FOR FIFTEEN MINUTES TIMED BY STOPWATCH AMONG THEM WAS MIKE HOWELL A LOCAL ICHTHYOLOGIST WHO LED THE RECOVERY EFFORT FOR THE ENDANGERED WATERCRESS DARTER BUT DOUBTS THAT THE STURGEON REPRESENTS A UNIQUE SPECIES HE WASN'T ALLOWED TO TAKE ANY TISSUE SAMPLES EITHER MR. HOWELL WAS TOLD THAT FWS INTENDED TO PERFORM AN AUTOPSY AND THEN PRESERVE THE FISH IN FORMALDEHYDE POLLUTING THE TISSUE AND PROBABLY RULING OUT ANY CHANCE OF GENETIC ANALYSIS EVEN SO THE MYSTERY OF THE LATE STURGEON'S IDENTITY MAY STILL BE SOLVABLE THE FISH AND WILDLIFE FOLKS HAVE ACKNOWLEDGED TAKING AND FREEZING SAMPLES OF FIN TISSUE FROM THE LIVING FISH PROVIDING THERE'S ENOUGH OF THEM THESE FIN CLIPS COULD PROVIDE INSIGHT INTO CONNECTION BETWEEN THE SHOVELNOSE AND THE ALABAMA STURGEON THOUGH MR. STEWART INSISTS THAT GENETICS IS NOT DISPOSITIVE IF THE FISHES LOOK DIFFERENT MR. STEWART WHO OBJECTS TO OUR EARLIER CHARACTERIZATION OF HIM AS THE STURGEON'S POLITICAL CHAMPION SAYS I CONCENTRATE ON STAYING VERY BIOLOGICAL ON THIS ISSUE IN HIS VIEW IT'S THE CORPS OF ENGINEERS THAT'S MOTIVATED BY POLITICS NAMELY A DESIRE TO CURRY FAVOR WITH TUGBOAT OPERATORS AND LOCAL INDUSTRY AKA THE HUMANS FWS WASN'T ABOUT TO ANNOY THE ONLY LIVING SPECIMEN BY POKING AT IT FOR BLOOD SAMPLES OR MUSCLE TISSUE MR. STEWART TELLS US RATHER HE WAS PRAYING THAT HE'D CATCH ANOTHER AND MAKE A BREEDING PAIR WE STRESS THAT THERE'S NO EVIDENCE OF FOUL PLAY HERE JUST ENDANGERED SPECIES POLITICS AS USUAL BUT IT WOULD CERTAINLY BE MORE THAN A LITTLE IRONIC IF THE FWS IN ATTEMPTING TO PROVE THE ALABAMA STURGEON SHOULD BE PROTECTED ACCIDENTALLY KILLED THE LAST ONE AND THINGS WOULD BEGIN TO SMELL DISTINCTLY FISHY IF THE AGENCY WERE NOW TO STONEWALL ATTEMPTS TO GET TO THE BOTTOM OF THE GENETIC CONSANGUINITY BETWEEN THE COMMON SHOVELNOSE AND ITS ALABAMA COUSIN THE LAST FEW YEARS HAVE INDEED BEEN TOUGH FINANCIAL TIMES FOR U. S. FAMILIES THE MEDIAN NET WORTH OF THE NATION'S HOUSEHOLDS TUMBLED TWELVE PERCENT FROM NINETEEN EIGHTY EIGHT TO NINETEEN NINETY ONE AFTER ADJUSTMENTS FOR INFLATION THE CENSUS BUREAU SAID IN A NEW REPORT THE DROP TO THIRTY SIX THOUSAND SIX HUNDRED TWENTY THREE DOLLARS FROM FORTY ONE THOUSAND FOUR HUNDRED SEVENTY TWO DOLLARS IS MAINLY THE RESULT OF DECLINES IN HOME EQUITY INTEREST EARNING ASSETS AT FINANCIAL INSTITUTIONS CHECKING ACCOUNTS RENTAL PROPERTY AND ASSETS HELD IN BUSINESSES THE REPORT FOUND BIG ETHNIC DIFFERENCES BLACK FAMILIES HAD A MEDIAN NET WORTH OF ONLY FOUR THOUSAND SIX HUNDRED FOUR DOLLARS IN NINETEEN NINETY ONE AND HISPANIC FAMILIES HAD FIVE THOUSAND THREE HUNDRED FORTY FIVE DOLLARS WHILE WHITE HOUSEHOLDS HAD A MEDIAN NET WORTH OF FORTY FOUR THOUSAND FOUR HUNDRED EIGHT DOLLARS HOWEVER WHITES WERE THE ONLY RACIAL GROUP WITH A STATISTICALLY SIGNIFICANT DECLINE IN THEIR NET WORTH DURING THE PERIOD IT FELL MORE THAN THIRTEEN PERCENT THE REPORT ALSO FOUND THAT BLACKS TEND TO HAVE A LARGER PERCENTAGE OF THEIR NET WORTH IN HOMES AND CARS WHILE THAT OF WHITES TENDS TO BE BASED IN STOCKS MUTUAL FUNDS AND CERTIFICATES OF DEPOSIT THOSE AMERICANS WITH ANNUAL INCOMES FROM TWELVE THOUSAND EIGHT HUNDRED FIFTY TWO DOLLARS TO THIRTY FOUR THOUSAND NINE HUNDRED SIXTY EIGHT DOLLARS ABOUT TWENTY PERCENT OF THE POPULATION EXPERIENCED THE LARGEST DROPS IN NET WORTH THE POOREST FIFTH OF AMERICANS SAW THEIR NET WORTH RISE MORE THAN FOUR PERCENT WHILE THE RICHEST FIFTH SAW THEIRS DROP FIVE PERCENT THE DISTRIBUTION OF NET WORTH WAS BASICALLY UNCHANGED DURING THE FOUR YEAR PERIOD THE RICHEST TWENTY PERCENT OF AMERICANS HELD ABOUT FORTY FIVE PERCENT OF ALL THE WEALTH WHILE THE POOREST TWENTY PERCENT HELD ONLY SEVEN PERCENT TWO FORMER EXECUTIVES OF BARTON INDUSTRIES INCORPORATED WERE ACCUSED BY THE GOVERNMENT OF FALSELY INFLATING THE VALUE OF THE COMPANY'S STOCK THEN PROFITING FROM BOTH SALES AND DONATIONS OF THE SHARES THE SECURITIES AND EXCHANGE COMMISSION ACCUSED C. W. EARL JOHNSON FORMER CHIEF EXECUTIVE OFFICER AND VICTOR L. JOYCE FORMER CHIEF FINANCIAL OFFICER OF BARTON A MAKER OF OIL FIELD EQUIPMENT IN SHAWNEE OKLAHOMA NEITHER DEFENDANT COULD BE REACHED FOR COMMENT THE S. E. C. COMPLAINT FILED IN FEDERAL COURT IN OKLAHOMA ALLEGES THAT THE TWO EXECUTIVES DIRECTED QUOTE BARTON ACCOUNTING PERSONNEL QUOTE TO FALSIFY SALES AND THEREBY OVERSTATE EARNINGS BY AS MUCH AS ONE HUNDRED SEVENTY PERCENT DURING THE NINETEEN EIGHTY NINE AND NINETEEN NINETY FISCAL YEARS THE S. E. C. COMPLAINT SAID BOTH MEN WERE TERMINATED BY BARTON INDUSTRIES IN FEBRUARY NINETEEN NINETY ONE SHORTLY BEFORE THE COMPANY SOUGHT BANKRUPTCY COURT PROTECTION TO REORGANIZE ITS DEBTS BARTON INDUSTRIES' ASSETS WERE SOLD TO ANOTHER COMPANY LAST NOVEMBER FAST FOOD CHAIN ARBY'S INCORPORATED A UNIT OF TRIARC COMPANY SAID IT WILL IMPOSE A NO SMOKING POLICY THIS SUMMER IN ALL OF ITS COMPANY OWNED RESTAURANTS THE MOVE IS THE LATEST IN A STRING OF EFFORTS BY TRIARC TO POLISH THE IMAGE OF ARBY'S AND ITS THREE OTHER CORE BUSINESSES ARBY'S BASED IN FORT LAUDERDALE FLORIDA HAS TWO THOUSAND TWO HUNDRED FORTY EIGHT RESTAURANTS IN THE U. S. OF WHICH TWO HUNDRED FIFTY SEVEN ARE COMPANY OWNED TRIARC ALSO HAS INTERESTS IN SOFT DRINK MANUFACTURING TEXTILES AND PROPANE GAS THE SMOKE FREE POLICY WAS ANNOUNCED IN WASHINGTON AT A FORUM ON THE HEALTH RISKS OF PASSIVE SMOKING SPONSORED BY THE ATTORNEYS GENERAL OF SIXTEEN STATES WHO ARE PUSHING FAST FOOD CHAINS TO ADOPT NO SMOKING POLICIES LAST JULY MINNEAPOLIS BASED DAIRY QUEEN URGED ITS FRANCHISEES TO ADOPT A NON SMOKING POLICY ALL CONTRACTS FOR NEW STORES CONTAIN A NO SMOKING CLAUSE ABOUT THREE FOURTHS OF THE FOUR THOUSAND EIGHT HUNDRED SIXTY TWO DAIRY QUEEN OUTLETS HAVE INDOOR SEATING I. B. M. REPORTED ITS FIRST QUARTERLY PROFIT SINCE THE SECOND QUARTER OF NINETEEN NINETY TWO SIGNALING THAT TWO YEARS OF BIG CHARGES AND RESTRUCTURING MAY FINALLY BE TAKING HOLD BUT THE COMPANY STILL MANAGED TO DISAPPOINT WALL STREET WITH LOWER THAN ANTICIPATED EARNINGS AND AN UNEXPECTED DECLINE IN SALES JEROME YORK CHIEF FINANCIAL OFFICER SAID HE EXPECTS AT LEAST A BREAK EVEN FIRST QUARTER AND THAT PROFIT MARGINS AND REVENUE WILL STAY FLAT OR RISE SLIGHTLY KODAK PLANS TO OFFER ITS FIRST ECONOMY BRAND FILM TO COMPETE WITH LOWPRICED RIVALS WHICH HAVE EATEN AWAY AT THE COMPANY'S MARKET SHARE SALES OF PREVIOUSLY OWNED HOMES GREW SIX POINT SEVEN PERCENT IN DECEMBER CONTINUING THEIR RECORD CLIMB ANALYSTS ATTRIBUTED THE GAIN TO GREATER CONSUMER OPTIMISM AND FEAR THAT INTEREST RATES ARE MOVING UP THE CONFERENCE BOARD'S CONSUMER CONFIDENCE INDEX ROSE TO EIGHTY THREE POINT TWO IN JANUARY FROM SEVENTY NINE POINT EIGHT IN DECEMBER THE WHITE HOUSE WILL DEFER PLANS FOR ITS OWN TELECOMMUNICATIONS REFORM BILL AND THIS WEEK WILL OFFER ONLY LIGHT CRITICISM OF TWO MEASURES IN THE HOUSE GOVERNMENT OFFICIALS SAID U. S. JAPAN TRADE TALKS REMAINED DEADLOCKED AFTER TWO DAYS RAISING THE POSSIBILITY THAT THERE WON'T BE A PACT BEFORE NEXT MONTH'S SUMMIT MEETING SPECTRUM HAS BEEN THE SUBJECT OF AN S. E. C. PROBE SINCE LAST MAY ITS GENERAL COUNSEL SAID THE INQUIRY CENTERS ON LICENSING PACTS AND STATEMENTS BY SPECTRUM OFFICIALS ABOUT THEIR VALUE M. C. I. PLANS TO BUILD A LONG DISTANCE NETWORK IN MEXICO WITH GRUPO FINANCIERO BANAMEX ACCIVAL MEXICO'S LARGEST FINANCIAL GROUP THE JOINT VENTURE TO DELIVER VOICE DATA AND VIDEO SERVICES IS VALUED AT ONE BILLION DOLLARS STOCK PRICES SLID AS INVESTORS TOOK PROFITS FROM HIGHFLYING CYCLICAL STOCKS THE DOW JONES INDUSTRIALS DECLINED SEVENTEEN POINT FOUR FIVE TO THREE THOUSAND EIGHT HUNDRED NINETY FIVE POINT THREE FOUR BOND PRICES ALSO FELL WALT DISNEY REPORTED RECORD EARNINGS AND REVENUE FOR ITS FIRST QUARTER BUOYED BY SURGING HOME VIDEO SALES EXXON REPORTED A SEVEN POINT ONE PERCENT INCREASE IN FOURTH QUARTER EARNINGS DESPITE SHARPLY LOWER OIL PRICES MEANWHILE PROFIT AT MOBIL AND CHEVRON TUMBLED COOPER INDUSTRIES' CHAIRMAN SAID NINETEEN NINETY FOUR PROFIT COULD DECLINE AS MUCH AS TWENTY FIVE PERCENT BECAUSE OF A SLUMP IN OIL EXPLORATION FOR WHICH IT SELLS EQUIPMENT TOKYO SHARES ROSE ONE POINT SIX PERCENT TUESDAY BOOSTED BY ARBITRAGERS AND FOREIGN INVESTORS BUYING AFTER MONDAY'S SLIDE CONDE NAST PUBLICATIONS NAMED JAMES TRUMAN TO SUCCEED ALEXANDER LIBERMAN AS ITS EDITORIAL DIRECTOR CAPITAL CITIES SLASH A. B. C. REPORTED A TWENTY ONE PERCENT JUMP IN FOURTH QUARTER PROFIT HELPED BY AN INCREASE IN BROADCAST REVENUE NORTHERN TELECOM POSTED A FIFTY NINE PERCENT DROP IN FOURTH QUARTER PROFIT PUSHING ITS STOCK DOWN ONE POINT THREE SEVEN FIVE DOLLARS TO THIRTY ONE POINT THREE SEVEN FIVE DOLLARS A PROBE OF THE VANCOUVER STOCK EXCHANGE YIELDED RECOMMENDATIONS THAT THE PROVINCIAL GOVERNMENT MAKE SWEEPING CHANGES IN THE WAY THE VENTURE CAPITAL MARKET IS REGULATED THE U. S. PATENT OFFICE PLANS TO BEGIN HEARINGS TODAY ON WAYS TO IMPROVE ITS EVALUATION OF SOFTWARE PATENTS BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED EIGHTY POINT THREE SIX OFF NINETEEN POINT OH FOUR COMMODITIES OIL FIFTEEN DOLLARS AND SEVENTEEN CENTS A BARREL UNCHANGED DOW JONES FUTURES INDEX ONE HUNDRED FORTY TWO POINT SIX FIVE OFF ZERO POINT FOUR SEVEN SPOT INDEX ONE HUNDRED TWENTY NINE POINT FIVE THREE UP ZERO POINT FOUR TWO DOLLAR ONE HUNDRED TEN POINT NINE OH YEN OFF ZERO POINT EIGHT ZERO ONE POINT SEVEN FOUR NINE SIX MARKS OFF ZERO POINT ZERO ZERO ONE TWO A UNIT OF NEW ENGLAND ELECTRIC SYSTEM ANNOUNCED THE CANCELLATION OF A PROPOSED SEVENTY TWO THOUSAND FIVE HUNDRED KILOWATT COAL FIRED POWER PLANT IN EAST PROVIDENCE R. I. THAT WOULD HAVE SOLD ITS OUTPUT TO THE COMPANY AND ELEVEN MASSACHUSETTS MUNICIPALITIES THE UNIT NEW ENGLAND POWER ATTRIBUTED THE ACTION TO THE REGION'S ECONOMIC DOWNTURN AND LESS COSTLY GENERATION ALTERNATIVES SPOKESMAN DAVID SAAD SAID THE CANCELLATION WILL COST THE COMPANY TWENTY ONE MILLION DOLLARS BUT THAT IT EVENTUALLY WILL RECOVER AT LEAST NINE MILLION DOLLARS OF THAT HE SAID THE COMPANY DOES NOT PLAN TO TAKE A CHARGE OR PASS ON THE COST TO RATEPAYERS IF APPROVED BY STATE AND FEDERAL AGENCIES NEW ENGLAND POWER AND TWO OF THE MUNICIPALITIES WILL MAKE CASH PAYMENTS TO NEWBAY'S OWNER RHODE ISLAND COGENERATION ASSOCIATES IN ADDITION NEW ENGLAND POWER WILL SELL SURPLUS POWER TO THE OTHER NINE MUNICIPALITIES ALLOWING IT TO RECOVER SOME OF ITS COSTS NEW ENGLAND POWER IS A WHOLESALE GENERATION AND TRANSMISSION UNIT OF NEW ENGLAND ELECTRIC SYSTEM A UTILITY HOLDING COMPANY BASED IN WESTBOROUGH MASSACHUSETTS TIMES MIRROR COMPANY'S FLAGSHIP LOS ANGELES TIMES SAID IT JOINED GANNETT COMPANY'S SAN BERNARDINO SUN AND THE PRESS ENTERPRISE OF RIVERSIDE CALIFORNIA TO OFFER COMBINED SALES OF ADVERTISING IN ALL THREE NEWSPAPERS THE HAYS FAMILY OWNS SIXTY PERCENT OF THE PRESS ENTERPRISE AND DOW JONES AND COMPANY HOLDS TWENTY ONE PERCENT THE LOS ANGELES A. D. I. NETWORK AS THE PACKAGED OFFERING IS BEING CALLED WON'T OFFER MUCH REDUCTION FROM COMBINED RATES IN THE THREE PAPERS BUT IS INTENDED AS A SALES DEVICE TO COMPETE FOR NATIONAL ADVERTISING ACROSS THE LOS ANGELES REGION OFFICIALS AT THE LOS ANGELES TIMES SAID THE OFFICIALS ADDED THAT THE PACKAGED OFFERING WHICH WILL BE AVAILABLE FOR EITHER DISPLAY OR CLASSIFIED ADVERTISING WILL OFFER SUBSTANTIAL SAVINGS OVER TELEVISION ADVERTISING THEY SAID THE THREE NEWSPAPERS COMBINED REACH ABOUT THIRTY THREE PERCENT OF THE ADULTS IN THE VAST LOS ANGELES REGION AND ABOUT FORTY EIGHT PERCENT OF ADULTS ON SUNDAYS THE FEDERAL GOVERNMENT'S BUDGET DEFICIT NARROWED TO EIGHT POINT TWO FIVE BILLION DOLLARS IN DECEMBER FROM THIRTY EIGHT POINT NINE FIVE BILLION DOLLARS A YEAR EARLIER THE TREASURY SAID MOSTLY BECAUSE OF A CALENDAR QUIRK SOCIAL SECURITY BENEFITS FOR JANUARY NINETEEN NINETY THREE WERE ACTUALLY PAID OUT IN DECEMBER OF NINETEEN NINETY TWO WIDENING THAT MONTH'S DEFICIT LAST MONTH'S DEFICIT COMPARED WITH A DEFICIT OF THIRTY EIGHT POINT THREE EIGHT BILLION DOLLARS IN NOVEMBER FOR THE FIRST THREE MONTHS OF THE GOVERNMENT'S FISCAL YEAR WHICH BEGAN OCTOBER FIRST THE DEFICIT TOTALED NINETY TWO POINT OH SIX BILLION DOLLARS COMPARED WITH A YEAR EARLIER ONE HUNDRED TWENTY POINT FOUR SEVEN BILLION DOLLARS THE TREASURY SAID RECEIPTS TOTALED ONE HUNDRED TWENTY FIVE POINT FOUR TWO BILLION DOLLARS LAST MONTH COMPARED WITH ONE HUNDRED THIRTEEN POINT SIX EIGHT BILLION DOLLARS A YEAR EARLIER AND EIGHTY THREE POINT ONE ONE BILLION DOLLARS IN THE PREVIOUS MONTH OUTLAYS TOTALED ONE HUNDRED THIRTY THREE POINT SIX SEVEN BILLION DOLLARS LAST MONTH COMPARED WITH ONE HUNDRED FIFTY TWO POINT SIX THREE BILLION DOLLARS A YEAR EARLIER AND ONE HUNDRED TWENTY ONE POINT FOUR NINE BILLION DOLLARS IN NOVEMBER THE GOVERNMENT PAID FIFTY TWO POINT SEVEN ONE BILLION DOLLARS IN INTEREST IN DECEMBER ON THE FEDERAL DEBT OUTLAYS FOR THE RESOLUTION TRUST CORPORATION TOTALED TWO POINT FOUR SEVEN BILLION DOLLARS LAST MONTH THE R. T. C. GENERATED ONE POINT ONE SEVEN BILLION DOLLARS IN RECEIPTS IN NOVEMBER THROUGH THE SALE OF ASSETS OF FAILED SAVINGS AND LOAN ASSOCIATIONS PRESIDENT CLINTON NAMED JOHN TRUESDALE TO AN INTERIM SLOT ON THE NATIONAL LABOR RELATIONS BOARD GIVING THE PANEL A QUORUM FOR THE FIRST TIME IN MORE THAN A MONTH MR. TRUESDALE CURRENTLY EXECUTIVE SECRETARY OF THE BOARD AND A FORMER BOARD MEMBER BECOMES THE THIRD MEMBER OF THE PANEL WHICH IS DESIGNED TO HAVE FIVE MEMBERS THE NOMINATIONS OF STANFORD UNIVERSITY LAW PROFESSOR WILLIAM GOULD THE FOURTH TO BE CHAIRMAN AND PHILADELPHIA LAWYER MARGARET BROWNING HAVE BEEN HELD UP IN THE SENATE BY REPUBLICANS WHO ARE FIGHTING FOR A SAY OVER THE THIRD VACANCY THE BOARD STOPPED TAKING CASES LATE LAST YEAR AFTER MEMBER JOHN RAUDABAUGH LEFT FOR PRIVATE PRACTICE LEAVING THE BOARD WITH ONLY TWO MEMBERS ONE SHORT OF A QUORUM THE RECESS APPOINTMENT OF MR. TRUESDALE WHO SERVED ON THE BOARD FROM NINETEEN SEVENTY SEVEN TO NINETEEN EIGHTY ONE WILL END WHEN A NEW BOARD MEMBER IS CONFIRMED BY THE SENATE THREE OUTSIDE DIRECTORS OF GITANO GROUP INCORPORATED RESIGNED FROM THE TROUBLED APPAREL MAKER AND THE NEW YORK STOCK EXCHANGE SAID IT HAS SUSPENDED TRADING IN THE COMPANY'S SHARES AND WOULD SEEK TO DELIST THEM THE ACTIONS FOLLOW GITANO'S ANNOUNCEMENT MONDAY THAT IT WAS PUTTING ITSELF UP FOR SALE THE DIRECTORS WHO RESIGNED ARE MICHAEL GOLDSTEIN VICE CHAIRMAN OF TOYS QUOTE R. QUOTE US INCORPORATED KEVIN KENNEDY A PARTNER AT GOLDMAN SACHS AND COMPANY AND NORMAN MATTHEWS A CONSULTANT WITH THE PROCESS TO SELL GITANO UNDER WAY THESE DIRECTORS BELIEVE THAT THEIR CONTRIBUTION TO GITANO IS COMPLETE AND THEY CAN NOW FOCUS ON THEIR OTHER BUSINESS INTERESTS ROBERT E. GREGORY JUNIOR GITANO'S CHAIRMAN SAID THE BIG BOARD SAID IT WILL APPLY TO THE SECURITIES AND EXCHANGE COMMISSION TO DELIST GITANO BECAUSE GITANO SAID IT WAS UNLIKELY THAT A SALE OF THE COMPANY WOULD REALIZE AN AMOUNT IN EXCESS OF THE ONE HUNDRED THIRTY MILLION DOLLARS THAT GITANO OWES ITS SECURED LENDERS THE EXCHANGE ALSO SAID GITANO NO LONGER MEETS CERTAIN LISTING CRITERIA WHEN LIZA DALBY WAS YOUNGER AND LEARNING TO BE AN ANTHROPOLOGIST SHE LIVED AMONG THE GEISHA OF KYOTO FOR A TIME WORKING AS ONE HERSELF SHE WROTE A BOOK ABOUT HER EXPERIENCES CALLED QUOTE GEISHA QUOTE AND DEVELOPED A CONVENIENT OBSESSION THAT HAS LED TO QUOTE KIMONO QUOTE YALE UNIVERSITY PRESS THREE HUNDRED EIGHTY FOUR PAGES THIRTY DOLLARS ONCE AGAIN MS. DALBY HAS A GREAT DEAL TO TELL STARTING WITH HER CONTENTION THAT CLOTHING AND WEARER MERGE IN JAPAN MORE THAN IN MOST PLACES THE KIMONO REMAINS AN IMPORTANT SYMBOL IN THE DEBATE OVER JAPANESENESS THAT LINGERS LIKE A BAD TOOTH TO BE PROBED BY INTELLECTUALS TELEVISION PROGRAMS AND SCHOLARLY JOURNALS TO BE SURE MANY MIDDLE CLASS WOMEN SEEM TO TAKE TO THE ROLE OF CULTURAL CUSTODIANS AND ARE CONTENT TO WRAP THEMSELVES IN A KIMONO AS AN EXPRESSION OF NATIONAL PRIDE CULTURAL CONTINUITY AND CONSPICUOUS CONSUMPTION IN MODERN JAPAN CARRYING TRADITION DOESN'T COME CHEAPLY A PROPER KIMONO WITH ACCOUTERMENTS CAN COST SIX THOUSAND FIVE HUNDRED DOLLARS A READY TO WEAR ENSEMBLE IN POLYESTER RUNS ABOUT ONE THOUSAND TWO HUNDRED DOLLARS WHAT IS IT ABOUT THE KIMONO THAT MAKES JAPANESE EITHER LOVE IT OR LOATHE IT FROM ITS HAZY ORIGINS IN THE FLOWING ROBES OF SEVENTH CENTURY CHINA TO ITS FIXED AND FROZEN CONTEMPORARY VERSION THE KIMONO HAS SERVED AS A CENTRAL PROP IN THE SAGA OF DEFINING JAPANESENESS MS. DALBY CAST AS THE SCHOLAR STORY TELLER NARRATES A STILL UNFOLDING DRAMA IN WHICH CLOTHES SERVE AS EMBLEMS OF IDENTITY MS. DALBY AS STORYTELLER IS AT HER BEST DESCRIBING THE ERA WHEN THE KIMONO MET ITS COMPETITOR WESTERN CLOTHING AROUND THE MIDDLE OF THE NINETEENTH CENTURY ONLY THE SHOCK OF CONTRAST OCCASIONED BY SEEING THE DRESS OF THE OUTLANDISH WEST FORCED JAPANESE TO DEFINE WHAT THEY THEMSELVES REALLY WORE SHE WRITES OF WHAT HAPPENED ONCE JAPAN'S SEAL WAS BROKEN BY COMMODORE PERRY'S FLEET AND THEN WHEN A STREAM OF FOREIGNERS ARRIVED IN WESTERN GARB IT WAS ONLY THEN THAT THE WORD KIMONO KI MEANS TO WEAR AND MONO MEANS THINGS WAS BROUGHT INTO SERVICE AT ALL IT WAS ONLY WITH THE KNOWLEDGE OF OTHER WAYS OF DRESSING THAT ANYONE NEEDED A NAME FOR THE HOME GROWN STYLE NOT LONG AFTER IN ONE THOUSAND EIGHT HUNDRED SIXTY EIGHT CAME THE MEIJI RESTORATION JAPAN EMBARKED ON SUCH A HEADY SUCCESSFUL DRIVE TO MODERNIZE THAT MANY BEGAN TO IDENTIFY UTTERLY WITH THE WEST OUT OF ASIA INTO THE WEST BECAME A SLOGAN AND CLOTHES BECAME A SYMBOL OF WHERE THE WEARER STOOD FOR OR AGAINST WESTERN INFLUENCE AT FIRST EVERYONE SEEMED TO EMBRACE WESTERN CLOTHING OR AT LEAST A LITTLE BIT OF IT HELD A LOT OF CACHET ON THE STREETS OF TOKYO THE MOST WONDERFUL CONFABULATIONS WERE PARADED KIMONOS WITH HIGH BUTTON SHOES BOWLER HATS AND CAPES BECAME THE RAGE WOMEN ABANDONED THE LONGSTANDING FASHION OF BLACKENING THEIR TEETH AND TOOK TO WEARING GIBSON GIRL INSPIRED POMPADOURS INFATUATION WITH WESTERN MODES WAS SO STRONG THAT EMPRESS HARUKO PROCLAIMED THE KIMONO A DEFORMITY AND ABERRATION ARISING OUT OF JAPAN'S SINIFIED IMPERIAL PAST MS. DALBY GOES ON EVEN THE EMPEROR ISSUED A CLOTHING REFORM DISAVOWING THE COURTLY ROBES AS REMARKABLY ESSENTIALLY NON JAPANESE ASIA'S NEW IMPERIALISTS POSED FOR PHOTOGRAPHS IN TOP HATS AND TAILS THE EMPEROR DONNED BROCADE DRENCHED AND BEMEDALED MILITARY UNIFORMS FASHIONED AFTER THE FRENCH AND THE NATION'S ARMY FOLLOWED SUIT THE PRICE OF THIS HEADLONG INFATUATION WAS A PERMANENT CRISIS OF IDENTITY THE KIMONO REASSERTED ITSELF MOSTLY AMONG WOMEN AND AS A SIGN OF TRADITION RATHER THAN FASHION AND AS MS. DALBY MAKES CLEAR THE TENSIONS BETWEEN EAST AND WEST OLD AND NEW WERE PARTLY RELIEVED BY THIS DIVISION OF CULTURAL LABOR AS IT WERE ACCORDING TO WHICH WOMEN TOOK ON THE ROLE OF CONSERVATORS OF TRADITION BY ONE THOUSAND EIGHT HUNDRED NINETY FIVE THERE WERE PLENTY OF JAPANESE WHO HAD GROWN DISILLUSIONED WITH THE WEST AND NATIONALISM FUELED BY THE SINO JAPANESE WAR WAS ON THE ASCENDANCY SCHOOL GIRLS WERE RE WRAPPED IN KIMONOS TODAY THE KIMONO IS MOSTLY DRAGGED OUT FOR WEDDINGS AND FUNERALS AND MOSTLY BY WOMEN THERE ARE SOME HOWEVER WHO ARE FED UP WITH THIS CURATORIAL ROLE EARLIER THIS YEAR AROUND THE TIME THE BRAINY CAREER WOMAN MASAKO OWADA AGREED TO MARRY CROWN PRINCE NARUHITO SOME OF THE AMBIVALENCE INDEED ANTAGONISM INSPIRED BY THE KIMONO CAME TO THE SURFACE YOKO TAJIMA A WELL KNOWN FEMINIST AND PROFESSOR RAILED AT THE T. V. IMAGES OF THE CROWN PRINCESS TO BE STANDING IN KIMONO WITH DOWNCAST EYES AND HEAD COCKED TO ONE SIDE WEARING A KIMONO SAID MS. TAJIMA IS NOT MY VERSION OF BEING A JAPANESE WOMAN IT REPRESENTS EVERYTHING I HATE QUOTE THE DEMURE ONE STEP BEHIND ROLE UNLIKE MS. TAJIMA OR ANY OTHER JAPANESE FOR THAT MATTER MS. DALBY DID NOT HAVE TO CHOOSE WHETHER TO LOVE OR LOATHE HER SUBJECT INSTEAD SHE OFFERS A TOUR OF THE CULTURAL COLLISIONS THAT HAVE BECOME PART OF THE FABRIC NOT JUST OF THE KIMONO BUT OF MODERN JAPAN IT IS A TOUR WELL WORTH TAKING MS. SCOTT IS A TOKYO BASED WRITER AN INFLUENTIAL MEMBER OF CONGRESS PREDICTED THAT TENSIONS BETWEEN THE U. S. AND NORTH KOREA OVER INSPECTIONS OF THE ASIAN NATION'S NUCLEAR PROGRAM WILL ESCALATE THIS YEAR QUOTE I BELIEVE THAT SOMETIME THIS YEAR YOU WILL SEE A CONFRONTATION THAT HOPEFULLY WILL END PEACEFULLY AND WE WILL PREVAIL QUOTE SAID REPRESENTATIVE JOHN MURTHA CHAIRMAN OF THE HOUSE DEFENSE APPROPRIATIONS SUBCOMMITTEE THE FIRST TEST OF THIS ADMINISTRATION IS GOING TO BE KOREA THE PENNSYLVANIA DEMOCRAT TOLD REPORTERS AT A BREAKFAST MEETING HAITI SOMALIA AND BOSNIA ARE NOTHING COMPARED TO KOREA MR. MURTHA SAID HE IS WORRIED THAT THE NORTH KOREANS HAVE BEEN USING THEIR NEGOTIATIONS WITH THE U. S. AS A DELAYING TACTIC WHILE THEY DEVELOP NUCLEAR WEAPONS THAT'S VERY DANGEROUS BECAUSE IT COULD LEAD TO WORLD WIDE PROLIFERATION MR. MURTHA SAID CLINTON PLEDGED TO PUSH LEGISLATION ON CRIME AND WELFARE REFORM IN HIS STATE OF THE UNION ADDRESS THE PRESIDENT SAID HE WOULD GIVE THOSE TWO ISSUES NEAR EQUAL BILLING WITH HIS TOP PRIORITY HEALTH CARE REFORM HE ALSO ISSUED HIS FIRST VETO THREAT SAYING HE WOULD KILL ANY HEALTH CARE BILL THAT DOESN'T PROVIDE COVERAGE FOR EVERY AMERICAN THE SPEECH WAS A MARKED DEPARTURE FOR CLINTON WHO HAS FOCUSED ON ECONOMIC ISSUES PARTICULARLY REDUCING THE DEFICIT AND EXPANDING TRADE LAST NIGHT IN EFFECT HE DECLARED VICTORY ON THE ECONOMIC FRONT AND PREPARED TO MOVE ON THE PRESIDENT SIGNALED THAT HE WANTS TO SET A NEW SOCIALLY CONSCIOUS TONE FOR HIS ADMINISTRATION HE SPOKE OF THE NEED FOR FAMILY VALUES AND VOWED TO PRESS FOR AN END TO VIOLENCE ON THE STREETS THE PRESIDENT WILL REQUEST AN ADDITIONAL SIX POINT SIX BILLION DOLLARS FOR EARTHQUAKE HIT CALIFORNIA CLINTON WILL ASK CONGRESS TO APPROVE THE EMERGENCY FEDERAL ASSISTANCE FOR SOUTHERN CALIFORNIA ON TOP OF NINE HUNDRED MILLION DOLLARS ALREADY RELEASED FROM CONTINGENCY FUNDS WHITE HOUSE BUDGET DIRECTOR PANETTA ANNOUNCED PRIME MINISTER CHERNOMYRDIN UNVEILED A RUSSIAN FARM SUBSIDY PROGRAM THAT COULD COST HUNDREDS OF MILLIONS OF DOLLARS IN THE NEXT FEW YEARS THE INTERFAX NEWS AGENCY SAID SEPARATELY THE HEAD OF THE HOUSE FOREIGN AFFAIRS PANEL HAMILTON WARNED THE CLINTON ADMINISTRATION HE MAY OPPOSE FURTHER MOSCOW AID UNLESS IT CURBS INFLATION MEXICO'S PRESIDENT FLEW TO THE SOUTHERN STATE OF CHIAPAS FOR HIS FIRST VISIT SINCE A JANUARY FIRST UPRISING BY GUERRILLAS SEEKING IMPROVED SOCIAL CONDITIONS SALINAS TOLD REPRESENTATIVES OF TWO HUNDRED EIGHTY INDIGENOUS GROUPS HE WOULD WORK FOR PEACE AND ECONOMIC REFORMS THE ENERGY DEPARTMENT IS CONDUCTING MORE THAN TWO HUNDRED RADIATION EXPERIMENTS INVOLVING HUMANS BUT IS FOLLOWING STRICT ETHICAL PROCEDURES AND OBTAINING PROPER CONSENT ACCORDING TO ENERGY SECRETARY O'LEARY SHE SAID CLINTON SOON WILL DIRECT ALL FEDERAL AGENCIES TO IMMEDIATELY HALT ANY EXPERIMENTS WHERE CONSENT MIGHT BE IN QUESTION FRANCE RENEWED ITS PLEA FOR DIPLOMATIC ACTION TO PERSUADE BOSNIA'S FACTIONS TO ACCEPT A NEGOTIATED SETTLEMENT DESPITE AN APPARENT REBUFF BY THE U. S. AT THE U. N. RUSSIA CALLED FOR AN URGENT SECURITY COUNCIL MEETING U. N. OBSERVERS WERE TRYING TO REACH A MUSLIM VILLAGE HERE TO INVESTIGATE REPORTS OF A MASSACRE BY CROATS AGRICULTURE SECRETARY ESPY IS EXPECTED TO ANNOUNCE FOOD SAFETY PROPOSALS TODAY THAT CALL FOR A TOUGHER MEAT INSPECTION SYSTEM THAT RELIES MORE ON SCIENTIFIC TESTING AND LESS ON VISUAL EXAMINATION OF BEEF AIDES SAID HE WOULD OUTLINE PLANS FOR CHANGING THE INSPECTION SYSTEM AT ALL LEVELS POP STAR MICHAEL JACKSON SETTLED A LAWSUIT THAT SAID HE MOLESTED A YOUNG BOY TERMS OF THE SETTLEMENT IN WHICH JACKSON DIDN'T ADMIT GUILT ARE CONFIDENTIAL ATTORNEYS FOR BOTH SIDES SAID IN SANTA MONICA CALIFORNIA VARIOUS REPORTS SAID THE SETTLEMENT IN THE SUIT FILED IN SEPTEMBER AGAINST THE THIRTY FIVE YEAR OLD SINGER WAS AT LEAST TEN MILLION DOLLARS AN ISRAELI DELEGATION ARRIVED IN CAIRO FOR AN UNEXPECTED RESUMPTION OF NEGOTIATIONS WITH P. L. O. OFFICIALS ABOUT PLANS FOR IMPLEMENTING PALESTINIAN SELF RULE SEPARATELY LEBANON'S PRIME MINISTER SAID AN ISRAELI WITHDRAWAL FROM LEBANON WAS A PRECONDITION FOR PEACE IN THE AREA A WHITE COLLAR CRIMINAL CAN'T AVOID JAIL JUST BECAUSE HIS INCARCERATION WOULD DESTROY HIS BUSINESS AND PUT PEOPLE OUT OF WORK A U. S. APPEALS COURT HAS RULED THE RULING OVERTURNS A DECISION BY A PITTSBURGH JUDGE LAST YEAR TO PUT A BUSINESSMAN ON PROBATION RATHER THAN IMPRISON HIM FOR MAIL FRAUD AND FALSE TAX FILINGS OPPOSITION LAWMAKERS AGREED TO MEET TODAY WITH MEMBERS OF JAPAN'S RULING COALITION IN AN EFFORT TO END A STALEMATE OVER POLITICAL REFORM HOWEVER THE MEETING ISN'T EXPECTED TO BE CONCLUSIVE PRIME MINISTER HOSOKAWA IS STRUGGLING TO TURN HIS PROPOSED REFORMS INTO LAW BEFORE PARLIAMENT'S CURRENT SESSION ENDS SATURDAY TIME IS RUNNING OUT FOR NORTH KOREA TO FOLLOW THROUGH ON ITS PROMISE TO ALLOW NUCLEAR INSPECTIONS A CLINTON ADMINISTRATION OFFICIAL SAID WITH A MEETING OF THE INTERNATIONAL ATOMIC ENERGY AGENCY SCHEDULED FOR NEXT MONTH THE U. S. ALREADY IS MAKING PLANS TO SEEK U. N. SANCTIONS IF PYONGYANG I. A. E. A. TALKS REMAIN DEADLOCKED HE SAID YOUR JANUARY TWELFTH ARTICLE QUOTE WHY THE INCREASE HOW DO WE COMPARE ANSWERING QUESTIONS ABOUT ELECTRIC RATES CONTAINED SOME STATEMENTS THAT PRESENT AN UNFAIR PICTURE OF ELECTRIC UTILITIES IN TEXAS THE ARTICLE STATES THAT T. U. ELECTRIC RECEIVED ALL OF ITS REQUESTED RATE INCREASE IN NINETEEN NINETY ONE ALTHOUGH THE COMPANY WAS GRANTED THE REQUESTED TEN POINT TWO PERCENT INCREASE IN REVENUE THE PUBLIC UTILITY COMMISSION DISALLOWED ONE POINT THREE EIGHT BILLION DOLLARS IN COSTS ASSOCIATED WITH THE COMANCHE PEAK NUCLEAR PLANT AND ANOTHER FIFTY SIX MILLION DOLLARS IN OTHER COSTS THOSE DISALLOWANCES WERE WRITTEN OFF THE BOOKS AS A LOSS TO SHAREHOLDERS WHO WILL NEVER EARN A RETURN ON THAT INVESTMENT REGARDING THE ARTICLE'S CONTENTION THAT CUSTOMERS IN MOST OF THE STATE'S LARGE INVESTOR OWNED UTILITIES PAY HIGHER RATES THAN NEARLY EVERY OTHER MAJOR CITY IN THE COUNTRY EVEN WITH THE ENTIRE FIFTEEN POINT THREE PERCENT INCREASE IMPLEMENTED UNDER BOND BY T. U. ELECTRIC IN AUGUST T. U. ELECTRIC'S RATES WERE STILL ABOUT FIVE PERCENT BELOW THE AVERAGE RATES OF THE NATION'S TWENTY FIVE LARGEST CITIES I TAKE ISSUE WITH THE ASSERTION THAT NATIONAL COMPARISONS ARE SKEWED BY HIGH RATES IN NEW YORK AND BOSTON COMPARE CHARGES FOR THE USE OF ONE THOUSAND KILOWATT HOURS PER MONTH OVER NINETEEN NINETY THREE CLOSE TO THE AVERAGE USAGE IN THE DALLAS AREA AND YOU'LL FIND THAT ELECTRICITY COSTS HERE WERE NOT ONLY LOWER THAN THOSE IN NEW YORK AND BOSTON BUT ALSO LOWER THAN BALTIMORE HOUSTON EL PASO LOS ANGELES DETROIT CHICAGO PHOENIX CLEVELAND SAN DIEGO SAN JOSE SAN FRANCISCO AND PHILADELPHIA COMPARING THE ELECTRIC BILLS AS OPPOSED TO THE VARIOUS CHARGES FOR THE SAME USAGE IS NOT VALID IN MOST CASES THAT IS MERELY A MEASURE OF THE NEED FOR AIR CONDITIONING IN A GEOGRAPHIC AREA INSTEAD OF THE EFFICIENCY WITH WHICH THE LOCAL UTILITY IS SERVING ITS CUSTOMERS MICHAEL TOTTY DOES AN INJUSTICE TO THE CITIZENS OF EL PASO WHEN HE WRITES ABOUT OUR AVERAGE AUGUST UTILITY BILLS BEING LOW BECAUSE OF THE AREA'S MILD CLIMATE EL PASO IS THE FOURTH POOREST CITY IN THE U. S. THE AVERAGE BILL IS LOW BECAUSE CONSUMERS ARE FRUGAL MOST PEOPLE WOULD AGREE THAT ONE HUNDRED DEGREE DAYS IN THE SUMMER AND TWENTY EIGHT DEGREE NIGHTS IN THE WINTER DO NOT FIT THE MILD WEATHER CATEGORY MR. TOTTY GOES ON TO BLAME THE HIGH RATES ON EL PASO ELECTRIC'S EXPENSIVE INVESTMENT IN THE PALO VERDE NUCLEAR POWER PLANT WITH NO MENTION OF THEIR SOUR INVESTMENTS IN HOTELS AND OTHER COMMODITIES THE BIDDING WAR FOR TAKING OVER EL PASO ELECTRIC WHICH HAS BEEN WON BY CENTRAL AND SOUTH WEST CORPORATION HAS RESULTED IN AN EXORBITANT PRICE AS THINGS STAND NOW CREDITORS SHOULD GET BACK AROUND NINETY FIVE CENTS TO THE DOLLAR TO SAY WE ARE BEING HURT IS AN UNDERSTATEMENT THE NEW COMPANY IS ASKING FOR HUGE RATE INCREASES TO COVER ITS OVERBIDDING SO BECAUSE EL PASOANS ARE FRUGAL AND TRY TO CONSERVE ENERGY BECAUSE OF THE HIGH RATES THEY WILL BE REWARDED WITH HUGE RATE INCREASES WE CAN ONLY HOPE THAT CENTRAL AND SOUTHWEST WILL DECIDE THAT ITS OFFER WAS TOO HIGH RETRENCH COME BACK WITH A SANE OFFER AND THUS HOLD THE LINE ON THE MOST EXPENSIVE ELECTRIC RATES IN TEXAS TEXAS JOURNAL WELCOMES YOUR COMMENTS BY MAIL PHONE OR FAX LETTERS SHOULD BE ADDRESSED TO MICHAEL ALLEN EDITOR TEXAS JOURNAL ONE THOUSAND TWO HUNDRED THIRTY THREE REGAL ROW DALLAS TEXAS SEVENTY FIVE THOUSAND TWO HUNDRED FORTY SEVEN THE PHONE NUMBER IS TWO HUNDRED FOURTEEN NINE HUNDRED FIFTY ONE SEVEN THOUSAND TEN THE FAX NUMBER IS TWO HUNDRED FOURTEEN NINE HUNDRED FIFTY ONE SEVEN THOUSAND NINETEEN AS WE IN CONGRESS EXAMINE PRESIDENT CLINTON'S HEALTH CARE REFORM PLAN IN THE WAKE OF HIS STATE OF THE UNION MESSAGE WE WOULD DO WELL TO RECALL WHAT HE TOLD THE NATION ABOUT ITS FISCAL HEALTH LAST JULY HEALTH CARE REFORM IS KEY TO REDUCING THE FEDERAL DEFICIT AND KEEPING IT DOWN IN FACT THROUGHOUT LAST YEAR'S BUDGET DEBATE THE PRESIDENT MADE IT CLEAR THAT HE WAS PROPOSING A TWO PRONGED ATTACK ON OUR NATION'S DEFICIT THE FIRST STEP HAD BEEN PRESENTED IN HIS BUDGET PLAN PRIMARILY INCREASED TAXES THE SECOND STEP WOULD COME IN HEALTH CARE REFORM WHICH WOULD ONCE AND FOR ALL CONTROL FEDERAL HEALTH CARE ENTITLEMENTS AND THEREFORE THE FEDERAL DEFICIT QUOTE WE NEED TO BRING THE DEFICIT DOWN TO ZERO QUOTE PRESIDENT CLINTON SAID TO DO THAT WE HAVE TO PASS HEALTH CARE REFORM BY THE TIME THE PRESIDENT'S HEALTH CARE PROPOSAL REACHED CONGRESS IN LATE OCTOBER HOWEVER MONEY SAVED FROM REFORMING FEDERAL HEALTH CARE PROGRAMS WAS BEING EARMARKED NOT FOR DEFICIT REDUCTION BUT FOR EXTENDING COVERAGE TO THE UNINSURED THE ADMINISTRATION'S PLAN IS NOT UNIQUE IN USING WHATEVER SAVINGS ARE ACHIEVED VIA HEALTH CARE REFORM TO EXTEND COVERAGE THIS IS TRUE OF OTHER REFORM PLANS AS WELL INCLUDING THE G. O. P. TASK FORCE PROPOSAL I HAVE CO SPONSORED AN IMPORTANT DISTINCTION HOWEVER IS THAT THE G. O. P. TASK FORCE PLAN AT LEAST RECOGNIZES THAT WE CANNOT ADD TO THE CURRENT DEFICIT WITH UNCONTROLLED AND OPEN ENDED HEALTH CARE ENTITLEMENTS IT PLACES A SPENDING LIMIT ON ANY NEW HEALTH PROGRAMS SO THAT THEY CANNOT EXCEED THE SAVINGS ACHIEVED FROM CONTROLLING CURRENT HEALTH PROGRAM OUTLAYS NO SUCH MECHANISM EXISTS IN THE ADMINISTRATION'S BILL CONSIDER THE CONSEQUENCES THE DEFICIT USING THE CONGRESSIONAL BUDGET OFFICE'S NUMBERS WILL DIP SLIGHTLY TO BELOW TWO HUNDRED BILLION DOLLARS IN FOUR YEARS THEN IT BEGINS RISING AGAIN WITHOUT THE ADMINISTRATION'S THREE HUNDRED BILLION DOLLARS IN DEFICIT REDUCTION FROM HEALTH CARE REFORM AS PROMISED BACK IN JULY THE DEFICIT WILL ONCE AGAIN REACH NEARLY THREE HUNDRED SIXTY BILLION DOLLARS WITHIN SEVEN OR EIGHT YEARS IN OTHER WORDS MOST OF THE DEFICIT REDUCTION RESULTING FROM THE TWO HUNDRED FIFTY FIVE BILLION DOLLARS IN TAXES AND USER FEES AND FURTHER CUTS IN DEFENSE SPENDING ADOPTED LAST YEAR WILL STILL NOT ELIMINATE THE LONG TERM DEFICIT PROJECTIONS FAILING TO CONTROL ENTITLEMENT SPENDING DURING LAST YEAR'S BUDGET DELIBERATIONS PARTICULARLY THE HEALTH CARE ENTITLEMENT PROGRAMS WILL GO DOWN IN HISTORY AS THE GREAT MISSED OPPORTUNITY OF THE CLINTON ADMINISTRATION HOW THEN CAN MR. CLINTON MAKE GOOD ON HIS STATED DESIRE TO TAKE THE DEFICIT DOWN TO ZERO THE FIRST OPTION OBVIOUSLY IS MORE TAXES BUT ECONOMIC NEGATIVES ASIDE THERE CLEARLY IS LITTLE POLITICAL SUPPORT FOR MORE TAXES SOME WILL ARGUE THAT WE CAN CUT MORE OUT OF THE DEFENSE BUDGET BUT THE DEFENSE BUDGET ALREADY ON A DOWNWARD PATH SINCE NINETEEN EIGHTY FIVE WILL BE REDUCED FURTHER UNDER THE CLINTON DEFENSE PLAN IN JUST A SHORT FOUR YEARS WE WILL BE DEVOTING LESS THAN THREE POINT TWO PERCENT OF OUR GROSS DOMESTIC PRODUCT TO NATIONAL SECURITY A LEVEL NOT SEEN SINCE NINETEEN FORTY HOW ABOUT MORE CUTS IN OTHER DOMESTIC PROGRAMS NOT EASY JUST TO STAY WITHIN THE SPENDING LIMITS ESTABLISHED IN THE BUDGET DISCRETIONARY SPENDING WILL HAVE TO BE REDUCED NEARLY TWENTY BILLION DOLLARS OVER THE NEXT FIVE YEARS NOT COUNTING AT LEAST TWENTY FIVE BILLION DOLLARS FOR THE PRESIDENT'S INVESTMENT INITIATIVES HE CLAIMS HE DIDN'T GET LAST YEAR BOB REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE RECENTLY OBSERVED ALL THE NUMBERS THAT WILL BE GENERATED FOR THE HEALTH CARE REFORM DEBATE WILL BE HIGHLY UNCERTAIN AND SHOULD BE TREATED ACCORDINGLY UNFORTUNATELY HEALTH CARE ESTIMATES IN THE PAST HAVE UNDERESTIMATED THE COSTS AND OVERESTIMATE THE SAVINGS TWO EXAMPLES WHEN THE MEDICARE HOSPITAL INSURANCE PROGRAM WAS ADOPTED IN NINETEEN SIXTY FIVE IT WAS ESTIMATED TO COST ABOUT NINE BILLION DOLLARS IN NINETEEN NINETY THE ACTUAL COST WAS SIXTY SEVEN BILLION DOLLARS WHEN THE NINETEEN NINETY BUDGET AGREEMENT WAS ADOPTED WE THOUGHT WE HAD CUT THE COST OF FEDERAL HEALTH PROGRAMS BY MORE THAN FORTY TWO BILLION DOLLARS SINCE THEN TECHNICAL REASONS HAVE MORE THAN WIPED OUT ANY REAL SAVINGS IF WE REPEAT HISTORY AND OUR ESTIMATES ARE OFF BY SIMILAR MAGNITUDES HOLD ON INSTEAD OF HELPING TO REDUCE THE DEFICIT AS THE ADMINISTRATION STILL ASSERTS THE WHITE HOUSE PLAN COULD INCREASE THE DEFICIT BY FOUR HUNDRED BILLION DOLLARS NATIONAL HEALTH CARE EXPENDITURES COULD BE MORE THAN NINETEEN PERCENT OF G. D. P. THEREFORE WE WOULD GO THROUGH A TREMENDOUS SHAKE UP OF THE HEALTH CARE SYSTEM NOT REDUCE THE FEDERAL DEFICIT AND NOT CHANGE THE PROPORTION OF OUR NATIONAL WEALTH DEVOTED TO HEALTH CARE IT WOULD BEHOOVE US ALL REGARDLESS OF POLITICAL AFFILIATION TO BE HUMBLE IN OUR ABILITY TO PREDICT THE FISCAL IMPACT OF ANY PROPOSAL LET US HOPE THAT THE ADMINISTRATION IN AN EFFORT TO GUARANTEE HEALTH SECURITY TO ALL AMERICANS THAT CAN NEVER BE TAKEN AWAY DOES NOT IGNORE OUR COUNTRY'S ECONOMIC SECURITY THREATENED BY INCREASING FEDERAL DEBT SENATOR DOMENICI R. N. M. IS RANKING MINORITY MEMBER OF THE BUDGET COMMITTEE AMERICAN EXPRESS HAS A CHARGE CARD AMERICAN EXPRESS HAS A SECURITIES BUSINESS SPLIT THEM APART AND WHAT DO YOU GET A SPLIT VIEW ON WALL STREET WHERE ANALYSTS ARE CHURNING OUT QUOTE BUY QUOTE OPINIONS ON AMERICAN EXPRESS BUT A FEW BIG INVESTORS SAY THE BIG GAINS IN THE STOCK ARE ALREADY OVER NEWS OF THE COMPANY'S PLANNED SPINOFF OF LEHMAN BROTHERS PUSHED UP AMERICAN EXPRESS STOCK ONE AND ONE QUARTER YESTERDAY TO THIRTY TWO AND THREE QUARTERS VOLUME WAS HEAVY AT SEVEN POINT ONE MILLION SHARES SEVERAL ANALYSTS RUSHED TO UPGRADE THE STOCK BUT AS IS THE CASE WITH MANY CORPORATE TURNAROUNDS INVESTORS WHO ARE ARRIVING LATE MAY FIND THE BUFFET PICKED OVER NOW THAT AMERICAN EXPRESS SHARES HAVE RISEN FROM AROUND TWENTY FIVE AT THE BEGINNING OF NINETEEN NINETY THREE SOME BIG INVESTORS SAY THE EASY MONEY HAS BEEN MADE MOREOVER THEY SAY THE PARENT COMPANY FACES A TOUGH BATTLE TRYING TO RESTORE GROWTH IN ITS CHARGE CARD BUSINESS I'M NOT ADMIRING OF AMERICAN EXPRESS'S POSITION DOMESTICALLY SAYS JOHN NEFF MANAGER OF VANGUARD GROUP'S WINDSOR FUND EVEN CITICORP WHICH HAS AN ATTRACTIVE CARD IS NOW GIVING ITS CARD AWAY GRATIS HE POINTS OUT AFTER THE INITIAL EXCITEMENT WEARS OFF INVESTORS MAY ALSO REALIZE THAT THE SPINOFF MAY NOT BE SUCH GREAT SHAKES EITHER WE VIEW THE TRANSACTION AS NEUTRAL FOR AMERICAN EXPRESS SHAREHOLDERS JOAN SOLOTAR AN ANALYST AT DONALDSON LUFKIN AND JENRETTE SAID YESTERDAY IN COMMENTS TO CLIENTS SHE ADDED THE SUM OF THE PARTS WILL NOT BE GREATER THAN THE WHOLE TO BE SURE FEW LARGE INVESTORS THINK AMERICAN EXPRESS'S STOCK IS ABOUT TO TAKE A TUMBLE INDEED INVESTORS WHO BOUGHT AMERICAN EXPRESS FOR ITS TRAVEL SERVICES APPEAL HAVE LONG SEEN THE SECURITIES BUSINESS AS AN ANNOYINGLY UNPREDICTABLE APPENDAGE WHEN THE SPINOFF IS COMPLETED AND LEHMAN SHARES ARE DISTRIBUTED AS A DIVIDEND SOMETIME IN LATE APRIL OR MAY SUCH HOLDERS WILL BE ABLE TO BREATHE A LOT EASIER AND NOW THAT HARVEY GOLUB IS HOLDING THE REINS SOME BIG INVESTORS BELIEVE AMERICAN EXPRESS WILL BE ABLE TO REBUILD ITS FRANCHISE THAT PROCESS COULD BE SLOW GOING HOWEVER THE TURNAROUND CAME FROM TWENTY AT THE END OF NINETEEN NINETY TWO TO THIRTY TWO SAYS ROBERT TORRAY A MONEY MANAGER WHO NOTES THAT AMERICAN EXPRESS IS ONE OF HIS LARGEST HOLDINGS MR. TORRAY ISN'T BAILING OUT BUT NEITHER IS HE BUYING MORE SHARES NOW QUOTE FROM HERE ON UP THE COMPANY IS GOING TO HAVE TO PERFORM QUOTE HE SAYS THE BULLISH CASE GOES LIKE THIS AMERICAN EXPRESS STOCK HAS BEEN TRADING AT A MODEST MULTIPLE OF AROUND TEN TIMES EARNINGS ESTIMATES FOR NINETEEN NINETY FOUR THAT'S WELL BELOW THE LOW TEENS MULTIPLES OF COMPETITORS SUCH AS AS ADVANTA AND FIRST U. S. A. NOW WITH LEHMAN OUT OF ITS HAIR AND IMPROVEMENTS SHOWING UP IN THE FOURTH QUARTER CHARGE CARD BUSINESS INVESTORS' VIEW OF THE STOCK MAY CHANGE FOR THE FIRST TIME SINCE THE FOURTH QUARTER OF NINETEEN NINETY ONE THE COMPANY HAS REPORTED THAT THE NUMBER OF CARDS OUTSTANDING INCREASED ON A YEAR OVER YEAR BASIS NET INCOME OF ITS TRAVEL RELATED SERVICES UNIT ROSE TO TWO HUNDRED THIRTEEN MILLION DOLLARS UP FROM ONE HUNDRED EIGHTY ONE MILLION DOLLARS IN THE YEAR BEFORE QUARTER INDEED NED DAVIS AN ANALYST AT OPPENHEIMER AND COMPANY TOLD CLIENTS AMERICAN EXPRESS COULD CLIMB TO THIRTY SIX BASED ON A MULTIPLE OF TWELVE TIMES HIS EARNINGS ESTIMATE FOR NINETEEN NINETY FOUR THAT DOESN'T EVEN INCLUDE THE LEHMAN DIVIDEND THAT SHAREHOLDERS WILL RECEIVE IN APRIL WHICH HE SAYS HAS A VALUE OF AROUND FIVE DOLLARS PER AMERICAN EXPRESS SHARE THE TROUBLE IS IT'S GOING TO BE A LONG HAUL FOR MR. GOLUB AMERICAN EXPRESS'S CHAIRMAN FOR STARTERS SAYS WINDSOR'S MR. NEFF THEY CHARGE MERCHANTS MORE THAT'S TOUGH SMOKE THESE DAYS WE DON'T BELIEVE THE STREET IS ANTICIPATING AN APPROACHING SLOWDOWN IN FIRST QUARTER EARNINGS SAYS D. L. J.'S MS. SOLOTAR FURTHERMORE SHE SAYS THE CORPORATE PURCHASING CARD WILL BE SLIGHTLY ADDITIVE TO EARNINGS BEGINNING IN NINETEEN NINETY FIVE BUT WILL NOT BE SIGNIFICANT ENOUGH TO CHANGE OUR OUTLOOK FOR THE COMPANY ONE QUESTION FOR AMERICAN EXPRESS SHAREHOLDERS AS THEY WEIGH WHETHER TO HANG ON TO SHARES OF LEHMAN THE INVESTMENT BANK ARE THEY GETTING IN ON THE GROUND FLOOR OF A GOLD MINE OR GETTING SADDLED WITH THE PARENT'S RISKIEST ASSET LEHMAN FOUNDED IN ONE THOUSAND EIGHT HUNDRED FIFTY AND ONE OF WALL STREET'S TOP RANKED INVESTMENT BANKS BECAME PART OF AMERICAN EXPRESS AND ITS SHEARSON BROKERAGE UNIT IN NINETEEN EIGHTY FOUR THE MERGER WAS ROCKY FROM THE BEGINNING A LEHMAN PUBLIC OFFERING HAD BEEN EXPECTED FOR MONTHS EVEN BEFORE SHEARSON WAS ACQUIRED IN JULY BY SMITH BARNEY A UNIT OF PRIMERICA WHICH MERGED WITH TRAVELERS AND TOOK THE TRAVELERS NAME BUT AMERICAN EXPRESS RAISED EYEBROWS WITH THE DECISION TO SPIN OFF LEHMAN A MOVE REMINISCENT OF SEARS ROEBUCK AND COMPANY'S NINETEEN NINETY THREE SPINOFF OF DEAN WITTER DISCOVER SOME ANALYSTS ARGUE THAT AN INITIAL PUBLIC OFFERING OF LEHMAN WOULD HAVE BEEN A BETTER MOVE AMERICAN EXPRESS DISAGREES AMERICAN EXPRESS STARTLED ANALYSTS WITH ITS PLANNED CAPITAL INFUSION OF ONE POINT OH NINE BILLION DOLLARS INTO LEHMAN THE AMOUNT IS FIVE HUNDRED MILLION DOLLARS MORE THAN THE STREET EXPECTED BASED UPON REMARKS BY AMERICAN EXPRESS EXECUTIVES LAST SUMMER D. L. J.'S MS. SOLOTAR SAID THE ADDITIONAL CAPITAL ONLY UNDERLINES THE HURDLES FACED BY LEHMAN COMPARED WITH ITS COMPETITORS SOME OF WHICH ARE BETTER CAPITALIZED AND HAVE HIGHER RETURNS ON EQUITY THE LARGE CAPITAL INFUSION WAS NEEDED BECAUSE LEHMAN'S EQUITY TO ASSET RATIO WAS DRASTICALLY BELOW THAT OF ITS COMPETITORS SAYS MS. SOLOTAR IN ITS FAVOR LEHMAN HAS BEEN AMASSING CLOUT ON WALL STREET FROM NINETEEN EIGHTY FIVE THROUGH NINETEEN NINETY SHEARSON LEHMAN HAD BEEN MIRED AT FIFTH TO EIGHTH PLACE IN WALL STREET'S CORPORATE RANKINGS LEADING UNDERWRITINGS OF ROUGHLY TWENTY TWO BILLION DOLLARS OF STOCK AND DEBT COMBINED EACH YEAR ON AVERAGE BUT LEHMAN SOLO SOARED TO THIRD PLACE IN NINETEEN NINETY ONE IT HAS STAYED THERE AND IN NINETEEN NINETY THREE UNDERWROTE ONE HUNDRED FIFTEEN POINT SIX BILLION DOLLARS OF NEW OFFERINGS ACCORDING TO SECURITIES DATA COMPANY SKEPTICS SAY LEHMAN IS STILL UNDERCAPITALIZED RELATIVE TO MAJOR COMPETITORS ESPECIALLY GIVEN THE RISKY MARKETS IN WHICH IT WANTS TO PARTICIPATE ITS RETURN ON EQUITY AFTER THE SPINOFF WILL BE ABOUT TWELVE PERCENT TWO THIRDS OF THE INDUSTRY AVERAGE AND THERE'S A SENSE THAT IF THE COMPANY HAD GONE PUBLIC IN EARLY FALL WHEN BROKERAGE STOCKS WERE PEAKING AT RECORD LEVELS AND THE WALL STREET BOOM WAS GOING GREAT GUNS LEHMAN SHARES SIMPLY WOULD HAVE HAD MORE STEAM LEFT IN THEM RICHARD FULD JUNIOR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LEHMAN DISPUTES THAT THE WINDOW OF OPPORTUNITY HAS CLOSED QUOTE I BELIEVE THAT THE INDUSTRY IS JUST SCRATCHING AT THE SURFACE YOU HAVE A WHOLE WORLD JUST COMING OUT OF RECESSION OUT THERE QUOTE BUT THE SPINOFF STRUCTURE HOLDS A BUILT IN THREAT OF PRICE DEPRESSING STOCK SALES BOTH BY AMERICAN EXPRESS SHAREHOLDERS WHO DON'T WANT TO STAY IN LEHMAN AND BY LEHMAN'S OWN SENIOR MANAGEMENT THE MANAGERS WERE PAID MUCH OF THEIR NINETEEN NINETY THREE BONUSES IN A SIXTY MILLION DOLLAR INTERNAL OFFERING OF LEHMAN PHANTOM SHARES AND CAN CASH OUT THE FIRST THIRD OF THEIR SHARES ONE YEAR AFTER THE FIRM GOES PUBLIC ANALYSTS SAY AMERICAN EXPRESS'S PLANNED CAPITAL INFUSION IS HIGHER THAN EXPECTED BECAUSE EARLIER ESTIMATES OF WHAT IT WOULD TAKE TO GARNER LEHMAN BROTHERS A SINGLE A CREDIT RATING WERE UNREALISTICALLY LOW I'M NOT SURE WHERE THEY GOT THOSE NUMBERS SAYS JAKE NEWMAN ANALYST AT STANDARD AND POOR'S CORPORATION SUBSTANTIAL ADDITIONAL CAPITAL WAS ALWAYS NEEDED TO OFFSET THE RISKS OF THE BUSINESS HE SAID UNDERWRITING VOLUMES AND SECURITIES MARKET TRADING VOLUMES FLUCTUATE THERE'S INVENTORY RISK MEANWHILE LEHMAN SEEMS POISED FOR SOME AGGRESSIVE MOVES IT IS MOVING TO SET UP A TRIPLE A RATED DERIVATIVES SUBSIDIARY A BIG BUSINESS GETTER AT SOME FIRMS A COST CUTTING PROGRAM MOVED ONE THOUSAND FOUR HUNDRED EMPLOYEES TO JERSEY CITY N. J. OFFICES TRANSFERRED OTHERS TO ITS SWAPS AND INTERNATIONAL DIVISIONS AND LEHMAN INSIDERS EXPECT SOME DOWNSIZING OF STAFF STILL UP IN THE AIR IS THE POTENTIAL VALUATION OF LEHMAN ANALYSTS SAY IT MIGHT BE VALUED AT A MULTIPLE OF SEVEN TO NINE TIMES NINETEEN NINETY THREE OPERATING EARNINGS OF THREE HUNDRED SEVENTY SIX MILLION DOLLARS UNNERVING DIVERGENCE FOR TWO DAYS LAST WEEK THE DOW JONES INDUSTRIAL AVERAGE CLOSED AT A FIFTY TWO WEEK HIGH WHILE THE DOW JONES UTILITY AVERAGE CLOSED AT A FIFTY TWO WEEK LOW ACCORDING TO JAMES STACK WRITER OF THE INVESTECH MARKET ANALYST NEWSLETTER IN WHITEFISH MONTANA THERE WAS NO PRIOR DAY IN MARKET HISTORY WHEN THAT HAPPENED BUT THERE WERE THREE PREVIOUS TIMES WHEN THE INDUSTRIALS HIT A HIGH THE SAME WEEK THE UTILITIES HIT A LOW IN EACH CASE THE STOCK MARKET PLUNGED AFTERWARD IN DECEMBER NINETEEN SIXTY FIVE THE WARNING SIGNAL SOUNDED ONE MONTH BEFORE THE BEAR MARKET OF NINETEEN SIXTY SIX IN MAY NINETEEN SEVENTY TWO THE SIGNAL WAS A FEW MONTHS EARLY BUT THE BEAR MARKET OF NINETEEN SEVENTY THREE TO SEVENTY FOUR WAS THE WORST IN THIRTY YEARS THE ONLY OTHER TIME THE SIGNAL HAS SOUNDED WAS IN JULY NINETEEN NINETY THE SAME MONTH THE DOW INDUSTRIALS BEGAN A TWENTY PERCENT SLIDE A SLIDE IN THE UTILITY AVERAGE OFTEN PRESAGES A RISE IN INTEREST RATES AND RISING RATES CAN BE POISON TO STOCKS GREAT SCOTT SCOTT PAPER COMPANY IS EXPECTED TO ANNOUNCE A RESTRUCTURING CHARGE AGAINST EARNINGS THIS MORNING AND WALL STREET IS WATCHING CLOSELY BRUCE KIRK OF S. G. WARBURG NOTES THAT PHILLIP E. LIPPINCOTT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE PHILADELPHIA COMPANY PLANS TO STEP DOWN THIS SPRING MAKING THE TIME RIPE FOR QUOTE SOME REAL SURGERY QUOTE MR. KIRK LOOKS FOR A MINIMUM PRETAX CHARGE OF TWO HUNDRED MILLION DOLLARS SOME ANALYSTS SAY SCOTT MAY BE CONSIDERING SELLING OR SPINNING OFF ITS S. D. WARREN SPECIALTY PAPERS BUSINESS THE COMPANY DECLINED TO COMMENT IN OCTOBER IT SAID A SIGNIFICANT CHARGE WAS LIKELY BECAUSE OF COMPETITIVE PRESSURES SINCE THEN THE STOCK BUOYED BY RESTRUCTURING HOPES IS UP FROM ABOUT THIRTY SIX TO YESTERDAY'S FORTY THREE AND THREE EIGHTHS DOWN ONE EIGHTH SOME ANALYSTS SAY THE STOCK COULD GET A BOOST IF THE RESTRUCTURING ADDRESSES SPECIFIC PROBLEM AREAS SUCH AS OVERCAPACITY IN SPECIALTY PAPERS OTHER ANALYSTS SAY A SPINOFF OR PLAN TO SELL S. D. WARREN WOULD HAVE A STRONG POSITIVE IMPACT ON THE STOCK BUT MANY BELIEVE SCOTT WILL WAIT FOR A NEW CHIEF EXECUTIVE BEFORE MAKING SUCH A DECISION IN ONE THOUSAND EIGHT HUNDRED NINETY FIVE THE WORLD'S FIRST JEWISH MUSEUM OPENED ITS DOORS IN VIENNA SPONSORED BY THE SOCIETY FOR THE COLLECTION AND CONSERVATION OF ARTISTIC AND HISTORIC MONUMENTS OF JUDAISM AS THE SOCIETY'S NAME INDICATES THE MUSEUM'S AIMS WERE AT ONCE ALL ENCOMPASSING AND UNCLEAR SHOULD A JEWISH MUSEUM FOCUS ON THE RELIGIOUS OR THE CULTURAL THE ARTISTIC OR THE HISTORICAL ON JUDAISM IN A UNIVERSAL OR A LOCAL CONTEXT QUESTIONS OF IDENTITY WERE EFFECTIVELY PUT TO REST WHEN THE NAZIS CONFISCATED THE COLLECTION IN NINETEEN THIRTY EIGHT NOVEMBER NINETEEN NINETY THREE NINETY EIGHT YEARS AFTER THE OPENING OF THAT FIRST MUSEUM SAW THE UNVEILING OF THE NEW JEWISH MUSEUM OF THE CITY OF VIENNA IN MANY WAYS ITS GOALS ARE AS ALL ENCOMPASSING AS THOSE OF ITS PREDECESSOR HOW AFTER ALL CAN ONE CONDENSE THE MULTIPLICITY CONTAINED WITHIN THE NOTION OF QUOTE JEWISH CULTURE QUOTE INTO A TIDY MUSEUM EXHIBIT RATHER THAN PRESENT A SINGLE DEFINITION OF THE TERM THE MUSEUM CELEBRATES MANY DIFFERENT ASPECTS IS JEWISH CULTURE FINE ARTS AND THE CONTEMPORARY WORLD AS THE SHOW THE SONG OF SONGS THROUGH FEBRUARY THIRTEENTH PRESENTS IN PASTELS AND SCULPTURES BY GERMAN ARTIST HEINZ MACK OR SHOULD THE FOCUS BE INTELLECTUAL AND SOCIAL HISTORY EXEMPLIFIED BY AN EXHIBIT THROUGH MARCH FIFTH OF PHOTOGRAPHS AND TEXTS FROM THE NINETEEN THIRTY FOUR INTERNATIONAL PSYCHOANALYTIC CONGRESS IN LUCERNE JUST AFTER HITLER CAME TO POWER IN GERMANY A CENTRAL FOCUS IS JEWISH CULTURE IN VIENNA THE MAIN EXHIBITION CALLED TEITELBAUM USED TO LIVE HERE THROUGH MAY FIFTEENTH LITERALLY PLACES THIRTY JEWISH OBJECTS ON A HUGE MAP OF THE CITY THAT COVERS THE ENTIRE FLOOR ON THE MAP ARE AN ILLUMINATED MARRIAGE CONTRACT KETUBAH OF ONE THOUSAND THREE HUNDRED NINETY ONE SARTRE'S DRAFT OF A SCREENPLAY ABOUT FREUD A LIGHT BULB FROM VIENNA'S FIRST LIGHT BULB FACTORY FOUNDED BY ZIONIST JOHANN KREMENEZKY IN ONE THOUSAND EIGHT HUNDRED EIGHTY AN ASSORTMENT OF CALLING CARDS FROM VARIOUS BARONS DE ROTHSCHILD HUGO VON HOFFMANNSTHAL GUSTAV MAHLER AND SO ON ONE POINT ON THE MAP BUT ONLY ONE POINT IS A LENGTH OF YELLOW FABRIC EMBOSSED WITH THE SIX POINTED STAR DISPLAYED BENEATH A LIST OF NAZI DEPORTATIONS FROM VIENNA TO THE DEATH CAMPS IN A SEPARATE ALCOVE IS A POSTWAR TAPE RECORDING OF AUSTRIAN FEDERAL GOVERNMENT MEETINGS RIFE WITH STEREOTYPES AND PREJUDICE ABOUT HOW TO HANDLE THE JEWISH COMMUNITY THE EPONYMOUS TEITELBAUM WAS NOT A FAMOUS RESIDENT OF VIENNA THERE WERE HOWEVER SIXTEEN TEITELBAUMS LISTED IN THE NINETEEN THIRTY EIGHT TELEPHONE BOOK TODAY THERE ISN'T A SINGLE ONE JEWISH CULTURE AS PART AND PARCEL OF VIENNESE LIFE IS A THING OF THE PAST IN LIGHT OF THIS THE MUSEUM'S TASK IS TO RE CREATE A WORLD THE WHOLE INSTITUTION WAS THROWN TOGETHER AT TERRIFIC SPEED IN NINETEEN EIGHTY SIX VIENNA'S MAYOR HELMUT ZILK ANNOUNCED THAT HE WAS COMMITTED TO THE IDEA OF A JEWISH MUSEUM IN NINETEEN NINETY THREE WITH ELECTIONS AND THE POSSIBLE END OF HIS TERM APPROACHING HE DECIDED TO MAKE GOOD ON HIS PLEDGE A SPACE WAS FOUND IN THE ESKELES PALACE AT THE CENTER OF TOWN BY THE TIME THE LEASE WAS SIGNED THE NEW DIRECTOR HISTORIAN AND PROFESSOR JULIUS H. SCHOEPS AND HIS STAFF HAD JUST FOUR MONTHS IN WHICH TO ASSEMBLE THE SHOWS AND CATALOGS THE UNWONTED SPEED AT WHICH ALL THIS WAS CARRIED OUT DEMONSTRATES THAT WHATEVER A JEWISH MUSEUM IN THE GERMAN SPEAKING WORLD MAY BE IT IS UNAVOIDABLY A POLITICAL AND POLITICALLY CORRECT ISSUE THE HASTE MAY CREATE FUTURE PROBLEMS THE ESKELES PALACE IS RATHER SMALL FOR LARGE SCALE EXHIBITIONS SUCH AS THE CHAGALL SHOW SCHEDULED TO ARRIVE FROM JERUSALEM NEXT YEAR AS THE BUILDING IS A DESIGNATED LANDMARK IT WILL BE HARD TO GET PERMISSION TO EXPAND IT ALTHOUGH AN ARCHITECTURAL COMPETITION HAS BEEN PLANNED IT WILL BE DIFFICULT TO HOUSE THE EXTENSIVE PERMANENT COLLECTIONS WHICH INCLUDE THE BERGER COLLECTION TEN THOUSAND OBJECTS RELATING TO THE ASHKENAZI JEWS THE JEWISH COMMUNITY COLLECTION WHICH INCLUDES THE HOLDINGS OF THE ORIGINAL JEWISH MUSEUM AND THE SCHLAFF COLLECTION OF FIVE THOUSAND ANTI SEMITIC OBJECTS THE BASIS FOR A SHOW PLANNED FOR NINETEEN NINETY FIVE THE MUSEUM WON'T BE COMPLETELY FINISHED FOR ANOTHER TWO TO THREE YEARS SAYS CURATOR GABRIELE KOHLBAUER FRITZ STILL IT'S OFF TO A GOOD START THE RESPONSE HAS BEEN TREMENDOUS SHE ADDS CENTRAL TO THE CONCEPT OF THE MUSEUM IS THE FACT THAT IT WAS ONCE IMPOSSIBLE TO SEPARATE JEWISH CULTURE FROM THAT OF THE LARGER SOCIETY A PARTICULARLY POIGNANT POINT FOR ALL THOSE PEOPLE WHO'D ALWAYS THOUGHT OF THEMSELVES AS PLAIN GERMANS OR AUSTRIANS UNTIL THE NINETEEN THIRTIES THE NAZIS MADE THIS ESSENTIALLY ARTIFICIAL SEPARATION WITH TREMENDOUS EFFICIENCY ONE COULD ARGUE THAT EMPHASIZING THE QUOTE JEWISHNESS QUOTE OF MAHLER OR SCHOENBERG OVER THEIR UNIVERSAL QUALITIES AS ARTISTS IS TO CONTINUE THE ARTIFICIAL DIVISION IN AN AMERICAN CONTEXT IT MIGHT BE IN GERMAN SPEAKING COUNTRIES IT'S PART OF THE DESPERATELY NEEDED PROCESS OF REBUILDING AND RECLAIMING JEWISH CULTURE AND IDENTITY IN THIS MUSEUM DOCTOR SCHOEPS HOPES TO CREATE A PLACE THAT IS NOT MERELY A TOURIST ATTRACTION BUT AN ACTIVE PART OF THE COMMUNITY OF INTELLECTUAL AND ARTISTIC EXCHANGE FURTHERING THIS ARE THE LECTURE HALL THE CAFE TEITELBAUM AND A BRANCH OF THE BOOKSTORE LITERATURHANDLUNG WHICH FOUNDED IN MUNICH ELEVEN YEARS AGO BY RAHEL SALAMANDER IS THE MOST RENOWNED PURVEYOR OF JUDAICA IN THE GERMAN SPEAKING WORLD A JEWISH MUSEUM HAS TO BE CAREFUL NOT TO LIMIT EUROPEAN JEWISH HISTORY TO THE PERSPECTIVE OF NAZI MURDERS STATES DOCTOR SCHOEPS IN THE TEITELBAUM CATALOG HIS SOLUTION TO DEFINE THE MUSEUM NOT ONLY AS A MONUMENT TO THE PAST BUT AS A PLACE CAPABLE OF RESTORING A PLETHORA OF JEWISH IDENTITIES TO THE FUTURE OF VIENNA MS. MIDGETTE IS A WRITER IN MUNICH FACED WITH INCREASING PRESSURE TO ADDRESS THE PROBLEMS OF CRIME AND WELFARE PRESIDENT CLINTON SAID IN HIS STATE OF THE UNION ADDRESS THAT HE WOULD GIVE THOSE TWO ISSUES NEAR EQUAL BILLING WITH HIS TOP PRIORITY HEALTH CARE OVERHAUL AT THE SAME TIME HE INCREASED THE STAKES FOR HEALTH LEGISLATION HE ISSUED HIS FIRST VETO THREAT SAYING HE WOULD KILL ANY HEALTH CARE REFORM BILL THAT DOESN'T PROVIDE COVERAGE FOR EVERY AMERICAN QUOTE I WANT TO MAKE THIS VERY CLEAR QUOTE THE PRESIDENT SAID WAVING A BLACK PEN AT THE LAWMAKERS IN THE AUDIENCE IF YOU SEND ME LEGISLATION THAT DOES NOT GUARANTEE EVERY AMERICAN PRIVATE HEALTH INSURANCE THAT CAN NEVER BE TAKEN AWAY YOU WILL FORCE ME TO TAKE THIS PEN VETO THE LEGISLATION AND WE'LL COME RIGHT BACK HERE AND START OVER AGAIN AS RECENTLY AS LAST MONTH THE WHITE HOUSE EXPECTED LAST NIGHT'S NATIONALLY TELEVISED SPEECH TO FOCUS ON HEALTH CARE BUT MR. CLINTON CHANGED THE FOCUS TO INCLUDE CRIME AND WELFARE AS WELL HE EVEN TIED THE THREE ISSUES TOGETHER AND INSISTED THAT LEGISLATION AFFECTING THEM BE ENACTED THIS YEAR I KNOW IT WILL BE DIFFICULT TO TACKLE WELFARE REFORM IN NINETEEN NINETY FOUR AT THE SAME TIME WE TACKLE HEALTH CARE MR. CLINTON SAID BUT HE SAID IT IS INEVITABLE AND IMPERATIVE TO DO SO HE THEN ADDED IT IS ESTIMATED THAT ONE MILLION PEOPLE ARE ON WELFARE TODAY BECAUSE IT IS THE ONLY WAY THEY COULD GET HEALTH CARE COVERAGE FOR THEIR CHILDREN WHILE THERE AREN'T ANY CONCLUSIVE FINDINGS ABOUT THE LINK BETWEEN WELFARE AND HEALTH INSURANCE WELFARE EXPERTS SAY THAT ABOUT SIX PERCENT OF RECIPIENTS THOSE WITH SPECIAL MEDICAL NEEDS COLLECT WELFARE SPECIFICALLY TO GET THE ATTENDANT HEALTH COVERAGE AT LEAST ONE STUDY SHOWS THAT WELFARE CASELOADS WOULD DROP BY TWENTY FIVE PERCENT IF PRIVATE HEALTH INSURANCE THAT MATCHES THE COMPREHENSIVE COVERAGE OF MEDICAID WERE EXTENDED TO ALL WORKING WOMEN WHO HEAD HOUSEHOLDS LAST NIGHT'S SPEECH WAS A MARKED DEPARTURE FOR MR. CLINTON WHO TO DATE HAS CONCENTRATED ON ECONOMIC MATTERS PARTICULARLY REDUCING THE FEDERAL BUDGET DEFICIT AND EXPANDING FOREIGN TRADE LAST NIGHT HE EFFECTIVELY DECLARED VICTORY ON THAT SUBJECT TAKING CREDIT FOR THE IMPROVING ECONOMY AND PREPARED TO MOVE ON THE PRESIDENT SIGNALED THAT HE WANTS TO SET A NEW SOCIALLY CONSCIOUS TONE FOR HIS ADMINISTRATION TAKING ON THE MANTLE OF MORAL LEADER HE TRUMPETED THE NEED FOR FAMILY VALUES AND A SENSE OF COMMUNITY HE ALSO VOWED TO PRESS FOR AN END TO VIOLENCE ON THE STREETS AND FOR CITIZENS TO TAKE RESPONSIBILITY FOR THEIR ACTIONS MR. CLINTON CLEARLY HAS BEEN INFLUENCED BY THE GROWING PUBLIC DRUM BEAT FOR ACTION ON CRIME AND WELFARE CHANGES IN A RECENT WALL STREET JOURNAL SLASH N. B. C. POLL NINETY THREE PERCENT OF THE RESPONDENTS SAID DEALING WITH CRIME IS AN ABSOLUTE PRIORITY EIGHTY THREE PERCENT NAMED REVISING THE WELFARE SYSTEM AND SIXTY SEVEN PERCENT CITED HEALTH CARE AL FROM PRESIDENT OF THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL SAID MR. CLINTON'S POLITICAL INSTINCTS ALERTED HIM TO THE NEED TO ADD CRIME AND WELFARE TO THE AGENDA TWO ISSUES THAT TRADITIONALLY HAVE BEEN CHAMPIONED BY REPUBLICANS IF CONGRESS MANAGES TO ACT ON HEALTH CARE WELFARE AND CRIME MR. FROM SAID THE PRESIDENT WILL HAVE CHANGED THE POLITICAL LANDSCAPE TAKING QUOTE THE TURF THAT THE REPUBLICANS HAVE HELD QUOTE RESPONDING TO THE PRESIDENT SENATE MINORITY LEADER ROBERT DOLE R. KANSAS CREDITED MR. CLINTON AND HILLARY RODHAM CLINTON WITH SPARKING THE DEBATE ON HEALTH CARE BUT SENATOR DOLE COMPLAINED THAT THE ADMINISTRATION'S PLAN WOULD LEAD TO TOO MUCH GOVERNMENT CONTROL THE PRESIDENT'S IDEA MR. DOLE SAID IS TO PUT A MOUNTAIN OF BUREAUCRATS BETWEEN YOU AND YOUR DOCTOR MR. DOLE ALSO WONDERED WHETHER MR. CLINTON WILL FOLLOW THROUGH ON TOUGH TALK AGAINST CRIME REPUBLICANS WANT PRESIDENT CLINTON TO SIGN THE TOUGHEST BILL POSSIBLE HE SAID CITING SEVERAL MEASURES SUCH AS THE DEATH PENALTY FOR DRUG KINGPINS THAT THE ADMINISTRATION HASN'T ENDORSED MR. CLINTON ENTERED THE HOUSE TEN MINUTES LATER THAN SCHEDULED AND HE GREW HOARSE DURING THE SPEECH WHICH LASTED MORE THAN AN HOUR HE WAS MOST PASSIONATE WHEN DISCUSSING CRIME AND VALUES INSTILLED BY HIS MOTHER WHO DIED EARLIER THIS MONTH HE USED THE SPEECH TO MEND FENCES WITH THE LABOR MOVEMENT SEATED NEXT TO MR. CLINTON'S WIFE IN THE VISITORS' GALLERY WAS LANE KIRKLAND PRESIDENT OF THE A. F. L. C. I. O. WHO HAD BITTERLY OPPOSED THE PRESIDENT ON THE NORTH AMERICAN FREE TRADE AGREEMENT ON HER OTHER SIDE WAS JACK SMITH CHIEF EXECUTIVE OFFICER OF GENERAL MOTORS CORPORATION A SUPPORTER OF THE TRADE ACCORD HEALTH CARE REMAINED FIRST AMONG EQUALS FOR THE PRESIDENT'S ATTENTION MR. CLINTON STRONGLY REJECTED THE NOTION ADVANCED BY SOME REPUBLICANS THAT THE AMERICAN PEOPLE DON'T SEE THE NEED FOR HEALTH CARE CHANGES AS A CRISIS I KNOW THERE ARE PEOPLE HERE WHO SAY THERE IS NO HEALTH CARE CRISIS MR. CLINTON SAID TELL IT TO THE FIFTY EIGHT MILLION AMERICANS WHO DON'T HAVE HEALTH COVERAGE AT SOME TIME DURING EACH YEAR HE CHALLENGED THE PRESIDENT'S THREAT TO VETO ANYTHING LESS THAN UNIVERSAL HEALTH COVERAGE IS A POLITICALLY RISKY MOVE HIS ADVISERS WERE DIVIDED OVER WHETHER HE SHOULD MAKE IT THE STATEMENT WILL THRILL THE LEFT WING OF THE DEMOCRATIC PARTY PARTICULARLY THE ALMOST ONE HUNDRED HOUSE MEMBERS WHO BACK A BILL THAT WOULD ESTABLISH A FEDERALLY RUN TAXPAYER FINANCED SYSTEM OF NATIONAL HEALTH INSURANCE THE WHITE HOUSE NEEDS THESE LAWMAKERS TO PASS ANY COMPREHENSIVE HEALTH PLAN BUT THE PRESIDENT ALSO MUST HAVE THE VOTES OF SOME MODERATE DEMOCRATS AND REPUBLICAN TO PASS A HEALTH BILL AND THE VETO THREAT COULD ANTAGONIZE BOTH GROUPS MANY OF THEM DISLIKE THE TWO PRINCIPAL WAYS THAT HAVE BEEN PROPOSED TO ACHIEVE UNIVERSAL COVERAGE SETTING UP A NATIONAL GOVERNMENT RUN SYSTEM OR REQUIRING ALL EMPLOYERS TO PAY FOR PART OF THEIR WORKERS' HEALTH COVERAGE A GROUP OF TWENTY FOUR SENATE REPUBLICANS LED BY SENATOR JOHN CHAFEE R. R. I. DOES BACK A THIRD WAY THOUGH THEY HAVE PROPOSED REQUIRING ALL INDIVIDUALS TO OBTAIN HEALTH INSURANCE AND OFFERING FEDERAL SUBSIDIES TO THOSE WHO CAN'T AFFORD IT EMPHASIZING THE NEED FOR A LARGER GOVERNMENT RETRAINING PROGRAM MR. CLINTON SAID THE U. S. MUST TRANSFORM OUR OUTDATED UNEMPLOYMENT SYSTEM INTO A NEW RE EMPLOYMENT SYSTEM HE ALSO CALLED FOR ENACTMENT OF LEGISLATION CREATING A NATIONAL INFORMATION SUPERHIGHWAY THIS YEAR TO COMBAT CRIME MR. CLINTON INDICATED HE FAVORS THE TOUGH APPROACH OF THE SENATE CRIME BILL OVER THE MORE PREVENTION ORIENTED MEASURES PASSED BY THE HOUSE WHILE MENTIONING JUST A FEW ITEMS IN THE ALMOST ONE THOUSAND PAGE SENATE LEGISLATION HE SPECIFICALLY ENDORSED ONE OF THE STRICT SENTENCING PROPOSALS THAT MANY LIBERALS OPPOSE A PROVISION THAT WOULD IMPRISON FOR LIFE CRIMINALS WHO COMMIT THREE VIOLENT CRIMES THE PRESIDENT ALSO URGED PASSAGE OF MEASURES THAT WOULD BAN SEMI AUTOMATIC ASSAULT WEAPONS AND PUT ONE HUNDRED THOUSAND POLICE OFFICERS ON THE STREETS TO HELP PREVENT CRIME HE CALLED FOR APPROVAL OF INCREASES IN DRUG TREATMENT AND DRUG EDUCATION PROGRAMS WHILE POLISHED AT DOMESTIC POLITICS MR. CLINTON HAS STRUGGLED IN THE PAST AT ARTICULATING HIS FOREIGN POLICY GOALS HE TRIED TO BE CLEARER ABOUT THEM LAST NIGHT FIRST HE SAID HE WILL REFUSE TO CUT MILITARY SPENDING FURTHER QUOTE THE BUDGET I WILL SEND TO THIS CONGRESS DRAWS THE LINE AGAINST FURTHER DEFENSE CUTS AND FULLY PROTECTS THE READINESS AND QUALITY OF OUR FORCES QUOTE FURTHER MR. CLINTON ALSO TRIED TO FOCUS ON THE NEED TO ASSIST STRUGGLING NEW DEMOCRACIES AMONG THE PRESIDENT'S PRIORITIES WILL BE FIGHTING PROLIFERATION OF NUCLEAR WEAPONS SUPPORTING REFORM IN RUSSIA AND BRINGING EUROPE'S NEW DEMOCRACIES INTO A CLOSER RELATIONSHIP WITH THE NORTH ATLANTIC TREATY ORGANIZATION HE BARELY MENTIONED THE LINGERING HUMANITARIAN CRISES IN BOSNIA AND SOMALIA AREAS WHERE MR. CLINTON HAS FAILED TO FIND SOLUTIONS TO COMPLICATED PROBLEMS IN HAITI HE VOWED THE U. S. WOULD CONTINUE TO PRESS FOR THE RESTORATION OF DEMOCRACY MR. CLINTON ALSO APPEALED TO AN INCREASINGLY SKEPTICAL CONGRESS TO CONTINUE TO SUPPORT REFORM EFFORTS IN RUSSIA AND FOR THE FIRST TIME HE HINTED AT TWO AREAS OF POTENTIAL TROUBLE BETWEEN MOSCOW AND WASHINGTON SAYING THAT HE WOULD PRESS THE RUSSIANS TO MOVE FORWARD WITH FLAGGING ECONOMIC REFORM EFFORTS AND INSIST THAT RUSSIA'S DEALINGS WITH ITS CLOSEST NEIGHBORS BE LIMITED BY STRICT INTERNATIONAL STANDARDS MR. CLINTON CROWED ABOUT THE IMPROVING ECONOMY AND HIS ROLE IN REDUCING THE BUDGET DEFICIT WHICH FOR FISCAL NINETEEN NINETY FIVE IS NOW PROJECTED TO BE BELOW ONE HUNDRED EIGHTY BILLION DOLLARS A YEAR AGO THE WHITE HOUSE BUDGET OFFICE PREDICTED THAT THE NINETEEN NINETY FIVE DEFICIT WOULD BE TWO HUNDRED NINETY SIX BILLION DOLLARS WITHOUT ANY ACTION AFTER THE DEFICIT REDUCTION LAW WAS ENACTED LAST AUGUST BOTH THE WHITE HOUSE AND THE CONGRESSIONAL BUDGET OFFICE ESTIMATED THAT THE NINETEEN NINETY FIVE DEFICIT WOULD BE ABOUT TWO HUNDRED BILLION DOLLARS DEPENDING ON WHO IS DOING THE ESTIMATING BETWEEN SIXTY PERCENT AND EIGHTY PERCENT OF THE DECLINE FROM TWO HUNDRED NINETY SIX BILLION DOLLARS REFLECTED THE NEW LAW THE REMAINDER REFLECTED REVISED ECONOMIC AND TECHNICAL ASSUMPTIONS BOTH THE C. B. O. AND THE WHITE HOUSE PROJECT THAT IF CURRENT POLICIES REMAIN IN PLACE THE DEFICIT WILL LEVEL OFF AND THEN BEGIN TO GROW AGAIN LATER IN THIS DECADE AMREP CORPORATION SAID INVESTOR NICK G. KARABOTS A DIRECTOR OF THE COMPANY HAD AGREED TO PURCHASE ABOUT ONE POINT TWO MILLION AMREP SHARES FOR TEN DOLLARS A SHARE FROM SHAREHOLDER PETER B. BEDFORD THE PURCHASE WOULD BOOST MR. KARABOTS'S HOLDINGS TO MORE THAN TWENTY FOUR PERCENT OF THE SHARES OUTSTANDING FROM ABOUT EIGHT PERCENT MR. KARABOTS'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION INDICATED HE VIEWS THE PURCHASE AS AN INVESTMENT MR. KARABOTS ACQUIRED HIS CURRENT STAKE IN AUGUST IN EXCHANGE FOR DISTRIBUTION RIGHTS TO PUBLICATIONS PUBLISHED OR DISTRIBUTED BY HIS COMPANIES AMREP IS A NEW YORK HOUSING DEVELOPER AND DISTRIBUTOR OF MORE THAN EIGHT HUNDRED MAGAZINES TO LOCAL WHOLESALERS ACROSS THE COUNTRY AMREP WAS QUOTED AT NINE POINT THREE SEVEN FIVE DOLLARS UP TWELVE POINT FIVE CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY AS A FRESH COLLEGE GRADUATE JIANG XINHAO WAS ELATED WHEN CHINA'S STATE COMMISSION FOR RESTRUCTURING ECONOMY HIRED HIM TO STUDY THE DEVELOPMENT OF SPECIAL ECONOMIC ZONES QUOTE IT WAS ONE OF THE HOTTEST JOBS AROUND FOR YOUNG PEOPLE QUOTE HE SAYS THAT WAS IN NINETEEN EIGHTY SIX IN THE EARLY DAYS OF CHINA'S EXPERIMENT WITH FREE MARKET ECONOMICS TODAY THE TWENTY EIGHT YEAR OLD ARMED WITH A PORTABLE PHONE AND A PAGER DARTS AROUND BEIJING AS A MANAGER FOR HENG TONG COMPANY A THRIVING PROPERTY AND TRANSPORT COMPANY HE EARNS ABOUT TWO THOUSAND YUAN TWO HUNDRED THIRTY DOLLARS A MONTH COMPARED WITH ABOUT THREE HUNDRED YUAN AT HIS OLD JOB RESEARCHING REFORMS IS OUT XIA HAI IS IN MR. JIANG SAYS XIA HAI WHICH MEANS TO JUMP INTO THE SEA IS SLANG FOR LEAVING GOVERNMENT TO ENTER THE BUSINESS WORLD LOTS OF GOVERNMENT EMPLOYEES MOST OF THEM SEMISKILLED WORKERS AND SPECIALIZED TECHNICIANS HAVE TAKEN THE LEAP SINCE THE EARLY NINETEEN EIGHTIES BUT MORE RECENTLY SOME OF CHINA'S BEST AND BRIGHTEST BUREAUCRATS HAVE JOINED THE RUSH TO THE PRIVATE SECTOR BETTER PAY IS ONE REASON BUT MANY PEOPLE ARE LEAVING THEIR GOVERNMENT JOBS BECAUSE THEY FIND PRIVATE BUSINESS MORE CHALLENGING AND MORE INTERESTING IN ADDITION BEIJING'S NINETEEN EIGHTY NINE CRACKDOWN ON PRO DEMOCRACY ACTIVISTS PUT A DAMPER ON MANY GOVERNMENT RESEARCHERS AND POLICY MAKERS WHO BACKED THE MOVEMENT PROMPTING THEM TO PURSUE REFORM FROM THE OUTSIDE IN ONE WAY THE EXODUS IS GOOD HELPING BEIJING REDUCE ITS BLOATED BUREAUCRACY LAST YEAR BEIJING ORDERED THAT ALL GOVERNMENT DEPARTMENTS CUT STAFF BY ONE FOURTH COVERING ABOUT TWO MILLION JOBS BUT THE BRAIN DRAIN COMES AT A TIME WHEN CHINA NEEDS EXPERTISE TO HELP GUIDE IT THROUGH SOME OF THE MORE CHALLENGING PHASES OF REFORM SUCH AS OVERHAULING AILING STATE ENTERPRISES AND REFORMING THE TAX SYSTEM WHILE KEEPING INFLATION CURRENTLY IN DOUBLE DIGITS FROM WORSENING THE GOVERNMENT'S QUALITY AND EFFICIENCY ARE GOING DOWN SAYS YANG YANG EXECUTIVE VICE PRESIDENT OF CHINA INTERNATIONAL INTELLECTECH COMPANY A JOB PLACEMENT FIRM PARTLY BACKED BY A GOVERNMENT AGENCY THE GOVERNMENT SHOULD BE SLIM BUT IT SHOULD ALSO HAVE MUSCLE NOW SOME SUBSTANTIAL DEPARTMENTS DON'T HAVE SUBSTANCE THE STATE COUNCIL'S DEVELOPMENT RESEARCH CENTER FOR EXAMPLE HAS LOST ABOUT TWO THIRDS OF SIXTEEN RESEARCHERS IN ITS MARKET AND PRICE DEPARTMENT OVER THE PAST TWO YEARS MA JIANTANG WHO HEADS THE DEPARTMENT SAYS THAT WHILE THE OFFICE USED TO BE OVERSTAFFED I WISH SOME OF THEM WOULD HAVE STAYED THE PROBLEM IS ECONOMIC RESEARCH ORGANIZATIONS THESE DAYS HAVE NEITHER POWER NOR MONEY QUOTE TIAN YUAN IS ONE RESEARCHER THAT THE CENTER WOULD HAVE LIKED TO KEEP A YEAR AGO MR. TIAN LEFT HIS JOB TO BECOME CHAIRMAN OF CHINA INTERNATIONAL FUTURES COMPANY THE THOUGHTFUL SOFT SPOKEN ANALYST TURNED BUSINESSMAN SAYS HE MADE THE SWITCH BECAUSE HE FELT HE COULD ACCOMPLISH MORE IN THE PRIVATE SECTOR MY PERSONALITY IS SUCH THAT WHEN I HAVE AN IDEA I JUST DO IT HE SAYS TO SET UP A FUTURES MARKET IN CHINA REQUIRES A LOT OF EXPLAINING TO THE GOVERNMENT AND IN THE TIME THAT IT TAKES I COULD'VE GONE AHEAD AND DONE IT ALL THE THIRTY NINE YEAR OLD MR. TIAN WORKED AROUND THE CLOCK NAPPING OCCASIONALLY ON HIS OFFICE FLOOR AS HE BUILT UP THE COMPANY'S BUSINESS OF TRADING GOLD COMMODITY FINANCIAL AND OTHER FUTURES ON CHINESE AND FOREIGN EXCHANGES IN THE YEAR SINCE HE TOOK OVER HIS STAFF HAS GROWN TO ONE THOUSAND FROM FIVE AND ASSETS HAVE DOUBLED TO ONE HUNDRED MILLION YUAN MR. TIAN NOW EARNS MORE AND RIDES IN A CHAUFFERED AUDI BUT HE SAYS IDEALISM UNDERPINS HIS DRIVE IN HIS CURRENT JOB JUST AS IT DID IN GOVERNMENT WHERE HE CONDUCTED PIONEERING EXPERIMENTS WITH MERGERS AND FUTURES MARKETS IN THE MID NINETEEN EIGHTIES I STILL WANT TO HELP MY COUNTRY BUT MY WAY OF DOING IT IS DIFFERENT HE SAYS BEFORE I DEVELOPED POLICY NOW I CAN HELP DEVELOP AN INDUSTRY HE SAYS HE HAS TURNED DOWN SEVERAL OFFERS TO RETURN TO GOVERNMENT WORK THE BELIEF AMONG PEOPLE SUCH AS MR. TIAN THAT THEY CAN HELP CHINA MORE BY WORKING IN THE PRIVATE SECTOR HAS BEEN STOKED BY THE GOVERNMENT'S ATTITUDE TOWARD THEM AS A DEPARTMENT HEAD AT THE RESEARCH INSTITUTE OF THE STATE COMMISSION FOR RESTRUCTURING ECONOMY ZHANG SHAOJIE PARTICIPATED IN SOME OF THE FRONT LINE REFORM DEBATES OF THE NINETEEN EIGHTIES BUT FOLLOWING THE NINETEEN EIGHTY NINE CRACKDOWN AND A BOUT OF ECONOMIC OVERHEATING REFORM EFFORTS CAME TO A VIRTUAL HALT SO IN NINETEEN NINETY ONE HE AND SOME FRIENDS SET UP HENG TONG THE BEIJING PROPERTY AND TRANSPORT CONCERN WHERE MR. JIANG WORKS WITH MR. ZHANG AS CHAIRMAN QUOTE I TOOK EIGHT RESEARCHERS WITH ME TO HENG TONG QUOTE SAYS THE FORTY ONE YEAR OLD MR. ZHANG MR. JIANG JOINED LATER IN SOME WAYS HE SAYS HE HAS BEEN ABLE TO ACCOMPLISH MORE FOR REFORM WITH HENG TONG THAN HE DID IN GOVERNMENT FOR EXAMPLE WHEN FORMER COLLEAGES AT THE RESTRUCTURING COMMISSION WANTED TO EXPERIMENT WITH SO CALLED LEGAL BODY SHARES WHICH ARE TRADED ONLY AMONG ENTERPRISES HE VOLUNTEERED HENG TONG TO ISSUE SHARES AFTER OTHER COMPANIES REFUSED IN ADDITION WE CAN ASK LOCAL GOVERNMENTS FOR SUCH AND SUCH A CONDITION IF WE BRING IN INVESTMENTS AND THAT'S LIKE A KIND OF REFORM HE SAYS NOT ALL BUREAUCRATS WHO GO INTO BUSINESS ENJOY THE COMPETITION AND RISK THAT COME WITH IT ZHENG HONGQING CHAIRMAN OF WUHUA COMPANY SAYS THAT WHILE HE WOULDN'T CONSIDER RETURNING TO HIS HIGH LEVEL POSITION AT THE RESTRUCTURING COMMISSION FOR NOW RUNNING HIS PROPERTY INVESTMENT CONCERN HASN'T BEEN EASY IN LATE NINETEEN NINETY TWO MR. ZHENG TOOK UP AN OFFER TO RUN THE COMPANY FROM ONE OF THE GOVERNMENT DEPARTMENTS THAT FINANCED IT AT THE TIME THE PROPERTY MARKET WAS PEAKING SHORTLY AFTERWARD PRICES STARTED TO FALL AND BADLY NEEDED LOANS WERE CUT OFF AS BEIJING IMPLEMENTED AN AUSTERITY PROGRAM IN JUNE AS A RESULT THE COMPANY HASN'T BEEN ABLE TO SELL OR DEVELOP ITS HOLDINGS IN BEIJING AND IF YOU CAN'T SELL YOU LOSE MONEY SAYS MR. ZHENG THE DIFFERENCES BETWEEN THEORY AND ACTUALLY DOING SOMETHING ARE REALLY BIG HE SIGHS POT FARMERS A FEDERAL JUDGE RULED THAT THE SEARCH OF AN UNDERGROUND POT FARM IN EAST TEXAS WAS ILLEGAL BECAUSE AUTHORITIES USED HEAT DETECTION DEVICES WITHOUT A WARRANT JOSEPH MCKINNEY TYLER CORPORATION'S C. E. O. ESCAPED WITH MINOR INJURIES AFTER HE CRASH LANDED A PLANE IN KENTUCKY HOMESICK AUSTRALIANS TEXAS HAS BECOME THE LEADING U. S. BREEDING SITE FOR WALLABIES A SMALL RELATIVE OF THE KANGAROO IMPATIENT DIALERS SOUTHWESTERN BELL PLANS TO ASSIGN AN ADDITIONAL AREA CODE TO HOUSTON NEXT YEAR BECAUSE THE CITY HAS NEARLY OUTGROWN THE SEVEN HUNDRED THIRTEEN PREFIX PRUDENTIAL SECURITIES THE SECURITIES FIRM AGREED TO TEMPORARILY SUSPEND OPENING NEW BROKERAGE ACCOUNTS IN TEXAS AS PART OF A SETTLEMENT WITH STATE AUTHORITIES JAMES R. CHRISTIE WAS NAMED PRESIDENT OF THIS MACHINERY MAKER'S VALENITE INCORPORATED UNIT MR. CHRISTIE FORTY EIGHT YEARS OLD SUCCEEDS DONALD OTERO WHO RETIRED LAST YEAR CINCINNATI MILACRON ACQUIRED VALENITE WHICH MAKES CARBIDE CUTTING TOOL INSERTS AND STEEL INSERT HOLDERS FOR METALWORKING FROM G. T. E. CORPORATION LAST FEBRUARY MR. CHRISTIE HAS BEEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LONDON BASED HICKSON INTERNATIONAL P. L. C.'S APPLIED CHEMICALS AND WORLD TIMBER COMPANY UNIT A NEW STUDY SUGGESTS THAT COFFEE CAN INDUCE OSTEOPOROSIS IN OLDER WOMEN BUT THAT A GLASS OF MILK A DAY WILL COUNTER IT THE REPORT BASED ON NINE HUNDRED EIGHTY WOMEN BETWEEN FIFTY AND NINETY EIGHT YEARS OLD FOUND THAT LIFETIME CONSUMPTION OF CAFFEINATED COFFEE WAS ASSOCIATED WITH DECREASED BONE DENSITY A KEY INDICATOR OF OSTEOPOROSIS THE DISORDER IS A COMMON CAUSE OF BROKEN HIPS AND OTHER FRACTURES AMONG WOMEN PAST THE AGE OF MENOPAUSE BUT RESEARCHERS FOUND NO SIGNIFICANT DIFFERENCES IN BONE DENSITY AMONG PARTICIPANTS IN THE STUDY WHO DRANK AT LEAST A GLASS OF MILK A DAY OVER MOST OF THEIR ADULT LIVES NO MATTER WHAT THEIR COFFEE INTAKE THE STUDY BY ELIZABETH BARRETT CONNOR AND COLLEAGUES AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO IS PUBLISHED IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION IT WAS FUNDED BY THE NATIONAL INSTITUTE ON AGING AND THE NATIONAL COFFEE ASSOCIATION THE RESULTS ARE BASED ON X. RAY TESTS OF THE PARTICIPANTS' HIPS AND SPINES AS WELL AS A QUESTIONNAIRE ADMINISTERED BETWEEN FEBRUARY NINETEEN EIGHTY EIGHT AND JANUARY NINETEEN NINETY TWO THAT SOLICITED A VARIETY OF DATA INCLUDING LIFETIME DAILY CONSUMPTION OF COFFEE AND MILK ALL OF THE WOMEN WERE WHITE AND FROM THE UPPER MIDDLE CLASS COMMUNITY OF RANCHO BERNARDO CALIFORNIA THE FINDINGS DON'T PROVE THAT CAFFEINATED COFFEE CAUSES OSTEOPOROSIS BUT THE RESEARCHERS FOUND A STATISTICAL ASSOCIATION BETWEEN THE TWO AFTER ADJUSTING FOR SUCH FACTORS AS AGE CIGARETTE SMOKING ALCOHOL CONSUMPTION USE OF ESTROGEN REPLACEMENT THERAPY AND THE NUMBER OF YEARS THAT HAVE PASSED SINCE MENOPAUSE SOME PREVIOUS STUDIES HAVE SHOWN THAT CAFFEINE HAS A NEGATIVE EFFECT ON CALCIUM IN LABORATORY ANIMALS AND PEOPLE WHOSE DIETS ARE LOW IN CALCIUM THE JUSTICE DEPARTMENT SAID IT WON'T CHALLENGE ON ANTITRUST GROUNDS A PLAN BY INSURANCE COMPANIES TO CREATE A COMPUTER DATABASE THROUGH WHICH PRICE INFORMATION COULD BE SHARED IN A LETTER TO INSURANCE SERVICES OFFICE INCORPORATED A NONPROFIT COMPANY COMPRISED OF ONE THOUSAND FOUR HUNDRED PROPERTY AND CASUALTY INSURERS ANNE BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST SAID FEDERAL LAW EXEMPTS THE INSURANCE INDUSTRY FROM ANTITRUST LAWS INSURANCE SERVICES PLANS TO SELL ITS PROGRAM WHICH CONTAINS PUBLIC RECORD INFORMATION PRIMARILY TO INSURANCE COMPANIES AND STATE REGULATORS MS. BINGAMAN INDICATED THE DEPARTMENT ORDINARILY WOULD BE CONCERNED ABOUT THE PROPOSAL BECAUSE IT COULD BE USED BY INSURERS TO FIX PRICES THE MCCARRAN FERGUSON ACT HOWEVER QUOTE IMMUNIZES FROM ANTITRUST ENFORCEMENT THE BUSINESS OF INSURANCE TO THE EXTENT THAT SUCH BUSINESS IS REGULATED BY STATE LAW QUOTE SHE SAID IN HER LETTER IN JULY SHE TOLD CONGRESS SHE FAVORS NARROWING THAT EXEMPTION'S SCOPE DAVID OSTWALD THE COMPANY'S VICE PRESIDENT FOR CORPORATE COMMUNICATIONS SAID HIS PRODUCT WOULD BOOST RATHER THAN HAMPER COMPETITION BECAUSE INFORMATION IS THE OXYGEN OF COMPETITION KNOWLEDGE OF WHAT THE COMPETITION IS CHARGING DOESN'T LEAD TO PRICE FIXING HE ADDED MS. BINGAMAN'S LETTER INDICATED THAT JUSTICE DEPARTMENT OFFICIALS RELIED ON I. S. O. REPRESENTATIONS THAT STATE REGULATIONS ADEQUATELY COVER ITS PROPOSAL IF STATE REGULATION IS NOT AS YOU REPRESENT IT OR IF IT SHOULD CHANGE THE DEPARTMENT COULD TAKE A DIFFERENT POSITION ON THE APPLICATION OF THE MCCARRAN FERGUSON ACT EXEMPTION TO I. S. O.'S DEVELOPMENT AND MARKETING OF ITS PROPOSED PREMIUM COMPARISON PRODUCT SHE WROTE CITY NATIONAL CORPORATION SAID THE FEDERAL OFFICE OF THE COMPTROLLER OF THE CURRENCY LIFTED THE ORDER THAT HAD REQUIRED THE COMMERCIAL BANK TO RAISE SIXTY FIVE MILLION DOLLARS IN CAPITAL AND TO MEET OTHER CONDITIONS AFTER THE NOVEMBER NINETEEN NINETY TWO ORDER CITY NATIONAL SAID IT RAISED EIGHTY ONE MILLION DOLLARS THROUGH A RIGHTS OFFERING OF COMMON STOCK AND TOOK OTHER STEPS TO IMPROVE THE COMPANY'S FINANCIAL CONDITION THE U. S. PATENT AND TRADEMARK OFFICE BESET WITH COMPLAINTS OVER ITS HANDLING OF COMPUTER SOFTWARE PATENTS TODAY BEGINS A SERIES OF HEARINGS AIMED AT QUIETING CRITICS AND GAINING A HELPING HAND FROM INDUSTRY SOFTWARE MAKERS HAVE CARPED FOR YEARS ABOUT THE PATENT OFFICE'S PENCHANT FOR GRANTING OVERLY BROAD PATENTS FOR WHAT SEEM TO PEOPLE IN THE INDUSTRY TO BE OBVIOUS CODING TECHNIQUES AN AWARD OF A BASIC MULTIMEDIA PATENT LAST YEAR TO COMPTON'S NEW MEDIA A SUBSIDIARY OF TRIBUNE PUBLISHING GALVANIZED CRITICS WHOSE OUTCRY FORCED A RE EXAMINATION OF THE AWARD THE CONTROVERSY PROMPTED THE PATENT OFFICE TO CALL FOR PUBLIC HEARINGS ON HOW IT CAN IMPROVE ITS PROCESS OF EVALUATING AND GRANTING PATENTS ON SOFTWARE WHICH THE GOVERNMENT ESTIMATES IS THE BASIS FOR A THIRTY SIX BILLION DOLLAR INDUSTRY MANY PROGRAMMERS INSIST AN OVERHAUL IS MUCH NEEDED ARGUING THAT THE PATENT OFFICE RISKS STIFLING INNOVATION BY GRANTING EXCLUSIVE OWNERSHIP TO ORDINARY TECHNIQUES THEY SAY THAT THE PROCESS OF APPLYING FOR A SOFTWARE PATENT IS TOO TIME CONSUMING AND EXPENSIVE AND THAT EXAMINERS ARE ILL PREPARED FOR TACKLING THE QUESTION OF NOVELTY WHEN IT COMES TO AS YOUNG AND RAPIDLY CHANGING FIELD AS SOFTWARE CRITICS ARE SPLIT OVER REMEDIES AT THE HEARINGS SET FOR TWO DAYS IN SAN JOSE CALIFORNIA THIS WEEK AND TWO DAYS IN ARLINGTON VIRGINIA NEXT MONTH SOME PEOPLE WILL CALL FOR AN END TO AWARDING SOFTWARE PATENTS ALTOGETHER QUOTE THE PATENT SYSTEM IS A DISASTER FOR SOFTWARE QUOTE BECAUSE IT MAKES THE CREATION OF LARGE PROGRAMS INCREASINGLY DIFFICULT SAID RICHARD STALLMAN A PROGRAMMER IN CAMBRIDGE MASSACHUSETTS IT MAKES DEVELOPING SOFTWARE LIKE WALKING THROUGH A MINEFIELD MR. STALLMAN AND OTHERS ARGUE THAT THERE WAS PLENTY OF INNOVATION IN SOFTWARE PRIOR TO THE EARLY NINETEEN EIGHTIES WHEN THE GOVERNMENT BEGAN TO AWARD PATENTS FOR SOFTWARE INVENTIONS REFORMING THE PROCESS MR. STALLMAN SAID DOESN'T ADDRESS THE REAL PROBLEMS REFORMERS HOWEVER APPEAR TO HOLD THE UPPER HAND SOFTWARE UNDERPINS SO MANY ELECTRONIC PRODUCTS AND SERVICES TODAY THAT LARGE COMPANIES SEEM TO WANT EVERY POSSIBLE WEAPON AGAINST RIVALS BUT DEFENDERS OF SOFTWARE PATENTS AGREE THAT THE AWARDS PROCESS NEEDS TO BE REVAMPED ONE STARTING POINT MIGHT BE TO END THE VEIL OF SECRECY THAT COVERS ALL PENDING PATENT APPLICATIONS IN PERIODS OF RAPID CHANGE THE SECRECY WORKS AGAINST US BECAUSE IT INVITES OPPORTUNISM SAYS JOSEPH CLARK CHIEF EXECUTIVE OF VIDEODISCOVERY INCORPORATED A CLOSELY HELD SEATTLE COMPANY MR. CLARK SUGGESTS THAT THE PATENT OFFICE NOTIFY THE SOFTWARE INDUSTRY PRIOR TO A PATENT AWARD AND INVITE OFFERS OF EVIDENCE OF PRIOR ART WHICH IS THE EVIDENCE THAT PATENT EXAMINERS RELY ON TO DECIDE WHETHER AN INVENTION IS SUFFICIENTLY NOVEL BOLSTERING THE SUPPLY OF PRIOR ART IS MUCH NEEDED MANY SAY THE ART THAT'S AVAILABLE FOR EXAMINERS MAY NOT BE AS COMPLETE IN SOFTWARE AS IN OTHER FIELDS SAID THOMAS L. GIANNETTI A PATENT ATTORNEY IN NEW YORK QUOTE THEY DON'T HAVE THE HUNDREDS OF COMMERCIAL SOFTWARE PACKAGES THAT ARE WIDELY AVAILABLE QUOTE THE INDUSTRY IS PREPARED TO OFFER THE PATENT OFFICE TECHNICAL HELP IN HOPES OF SEEING MORE NARROW AND CONSERVATIVE PATENT AWARDS WE ARE HOPING THE INDUSTRY CAN WORK WITH THE PATENT AND TRADEMARK OFFICE TO IMPROVE THE EXPERTISE OF THE PATENT EXAMINERS AND CREATE AN ADEQUATE DATABASE OF PRIOR ART AND TO GENERALLY STREAMLINE AND MAKE LESS EXPENSIVE THE PROCESS OF PATENT APPLICATIONS SAID WILLIAM NEUKOM VICE PRESIDENT OF LAW AND CORPORATE FOR MICROSOFT CORPORATION THE LARGEST SOFTWARE MAKER IN THE U. S. SMALL COMPANY STOCK PRICES DETERIORATED FOR A SECOND DAY BUT MARKET WATCHERS SAID IT WAS NORMAL FOLLOWING THE STRONG RUN UP THIS YEAR THE RUSSELL TWO THOUSAND INDEX DECLINED ZERO POINT EIGHT FOUR POINT OR ZERO POINT THREE TWO PERCENT TO TWO HUNDRED SIXTY TWO POINT OH FIVE AFTER FALLING ZERO POINT NINE ONE POINT MONDAY THE INDEX WHICH TRACKS THE PERFORMANCE OF SMALL CAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES HAD SET EIGHT STRAIGHT RECORDS BEFORE MONDAY'S SLIDE A SHARP FALL IN THE PRICE OF INTERNATIONAL BUSINESS MACHINES SHARES DURING THE DAY PUSHED DOWN SOME SMALL TECHNOLOGY STOCKS AND THEY NEVER RECOVERED AMONG THE AFFECTED SMALL TECH STOCKS WERE PEAK TECHNOLOGIES GROUP A NEW YORK DISTRIBUTOR OF BAR CODE DATA COLLECTION EQUIPMENT WHICH SLID SEVEN EIGHTHS TO NINE AND ONE EIGHTH RADIUS A SAN JOSE CALIFORNIA VISUAL COMPUTING SYSTEMS CONCERN DOWN ONE TO SEVEN AND THREE EIGHTHS AND WEITEK A SUNNYVALE CALIFORNIA DESIGNER OF HIGH PERFORMANCE NUMERIC PROCESSING CIRCUITS AND SOFTWARE DOWN SEVEN EIGHTHS TO NINE BUT EXAR JUMPED ONE AND ONE HALF TO TWENTY THREE AND ONE QUARTER ON FISCAL THIRD QUARTER EARNINGS OF FIFTY SIX CENTS A SHARE UP FROM FIFTY ONE CENTS A YEAR EARLIER THE SAN JOSE CALIFORNIA COMPANY DESIGNS MANUFACTURES AND MARKETS ANALOG AND MIXED SIGNAL APPLICATION SPECIFIC INTEGRATED CIRCUITS GOOD EARNINGS ALSO HELPED SIGNAL TECHNOLOGY CLIMB FIVE EIGHTHS TO FIVE AND ONE HALF THE WEYMOUNT MASSACHUSETTS MAKER OF ELECTRONIC COMPONENTS AND SUBSYSTEMS REPORTED FOURTH QUARTER NET INCOME OF EIGHTEEN CENTS A SHARE ON MORE SHARES COMPARED WITH ELEVEN CENTS A YEAR EARLIER LANOPTICS ISRAEL SKIDDED THREE AND SEVEN EIGHTHS TO THIRTEEN AND FIVE EIGHTHS LATE MONDAY THE DEVELOPER AND MANUFACTURER OF WIRING CONCENTRATORS AND RELATED NETWORK MANAGEMENT SYSTEMS SAID PRELIMINARY FOURTH QUARTER RESULTS INDICATE NET WILL BE ABOUT SIX HUNDRED THOUSAND DOLLARS OR TEN CENTS A SHARE COMPARED WITH ONE MILLION DOLLARS OR TWENTY ONE CENTS A SHARE A YEAR EARLIER BROADBAND TECHNOLOGIES DURHAM N. C. SURGED TWO TO TWENTY EIGHT AFTER GOLDMAN SACHS AND COMPANY INITIATED COVERAGE OF THE STOCK WITH A QUOTE BUY QUOTE RATING AND ADDED THE TELECOMMUNICATIONS COMPANY TO ITS RECOMMENDED LIST INTEREST RATE SENSITIVE STOCKS FELL AS BONDS SLID THE TREASURY'S THIRTY YEAR BOND FELL MORE THAN ONE HALF POINT PUSHING ITS YIELD UP TO SIX POINT THREE FOUR PERCENT ANCHOR BANCORP WISCONSIN MADISON WISCONSIN FELL ONE HALF TO TWENTY THREE AND ONE QUARTER BANK OF NEW HAMPSHIRE MANCHESTER N. H. DECLINED ONE HALF TO EIGHTEEN AND PROVIDENT BANCORP CINCINNATI GAVE UP ONE HALF TO THIRTY ONE ELSEWHERE W. L. R. FOODS ROCKETED NINE AND ONE HALF TO TWENTY EIGHT AND ONE HALF LATE MONDAY TYSON FOODS SAID IT HAS PROPOSED TO BUY W. L. R. A HINTON VIRGINIA PRODUCER OF POULTRY AND MEAT PRODUCTS FOR THIRTY DOLLARS A SHARE IN CASH YESTERDAY W. L. R. FOOD PRESIDENT AND CHIEF EXECUTIVE OFFICER JAMES KEELER SAID TYSON'S PROPOSAL WAS TOTALLY UNSOLICITED UNWANTED AND OUT OF LINE WITH W. L. R. FOODS' LONG TERM BUSINESS PLANS AND CORPORATE PHILOSOPHY ON THE BORDER CAFES A DALLAS BASED OWNER AND OPERATOR OF CASUAL RESTAURANTS GAINED ONE AND ONE EIGHTH TO EIGHT AND THREE EIGHTHS BRINKER INTERNATIONAL N. Y. S. E. A RESTAURANT CONCERN SAID IT HAS ENTERED INTO A DEFINITIVE MERGER AGREEMENT TO ACQUIRE ON THE BORDER CAFES THE WEAK FINANCIAL AND TECHNOLOGY ISSUES CAUSED THE NASDAQ COMPOSITE INDEX TO LOSE FOUR POINT TWO SIX POINTS OR ZERO POINT FIVE FOUR PERCENT TO END AT SEVEN HUNDRED EIGHTY SIX POINT THREE NINE IT WAS JUST TIME TO TAKE A PAUSE SAID WILLIAM SULYA HEAD OF OVER THE COUNTER TRADING AT A. G. EDWARDS AND SONS INCORPORATED NOTHING GOES STRAIGHT UP AS THE OLD SAYING GOES STEVEN GOLDMAN A MARKET STRATEGIST AT WEEDEN AND COMPANY SAID INVESTORS TOOK PROFITS BECAUSE THINGS HAD GOTTEN PRETTY STRETCHED AND THERE WAS TOO MUCH ENTHUSIASM LOSING NASDAQ ISSUES RAN AHEAD OF GAINERS ONE THOUSAND SIX HUNDRED NINETY TO ONE THOUSAND THREE HUNDRED SEVENTY NINE NASDAQ NATIONAL MARKET VOLUME TOTALED TWO HUNDRED NINETY SEVEN MILLION ONE HUNDRED FORTY NINE THOUSAND SIX HUNDRED SHARES WHILE OVERALL VOLUME STOOD AT THREE HUNDRED THIRTY NINE MILLION TWO HUNDRED THREE THOUSAND SEVEN HUNDRED SHARES MONDAY NATIONAL MARKET VOLUME WAS TWO HUNDRED FIFTY EIGHT MILLION THREE HUNDRED EIGHTY EIGHT THOUSAND SIX HUNDRED SHARES AND TOTAL VOLUME WAS THREE HUNDRED THREE MILLION EIGHT HUNDRED EIGHTY FOUR THOUSAND NASDAQ NATIONAL MARKET STOCKS THAT SET HIGHS FOR THE YEAR TO DATE TOTALED SIXTY SEVEN WHILE TWENTY FIVE HIT LOWS OBSERVERS SAID MORE PROFIT TAKING MIGHT OCCUR IN THE NEXT FEW SESSIONS ALTHOUGH IT DOESN'T INDICATE THAT THINGS ARE COMING UNGLUED MR. SULYA SAID QUOTE IT'S JUST A NORMAL CORRECTION IN A HEALTHY BULL MARKET QUOTE SINCE NINETEEN NINETY FOUR BEGAN THE RUSSELL TWO THOUSAND IS UP THREE POINT FOUR SIX POINTS OR ONE POINT THREE FOUR PERCENT AND THE NASDAQ COMPOSITE HAS RISEN NINE POINT EIGHT POINTS OR ONE POINT TWO SIX PERCENT EVEN ACCOUNTING FOR THE LOSSES POSTED IN THE PAST TWO SESSIONS PRESIDENT CLINTON WILL ASK CONGRESS FOR SIX POINT SIX BILLION DOLLARS IN EMERGENCY SPENDING FOR SOUTHERN CALIFORNIA ON TOP OF NINE HUNDRED MILLION DOLLARS THAT ALREADY HAS BEEN RELEASED FROM CONTINGENCY FUNDS WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID THE MONEY WOULD GO TO REBUILD HIGHWAYS AND UTILITY SYSTEMS ASSIST SCHOOL DISTRICTS AFFECTED BY THE EARTHQUAKE PROVIDE VOUCHERS TO HELP DISPLACED PEOPLE FIND HOUSING AND TO PAY FOR FEDERAL EMERGENCY MANAGEMENT ADMINISTRATION OPERATIONS QUOTE THIS IS A PRELIMINARY REQUEST AND IT'S BASED ON THE BEST ESTIMATES OF DAMAGES THAT WE HAVE AT THIS POINT QUOTE MR. PANETTA SAID PROMISING TO ADJUST THE REQUEST AS NEW INFORMATION IS RECEIVED THE BUDGET DIRECTOR SAID PROMPT CONGRESSIONAL ACTION IS NEEDED TO WAIVE A LAW THAT LIMITS FEDERAL SPENDING ON ANY DISASTER TO ONE HUNDRED MILLION DOLLARS PER STATE A LEVEL HE SAID MAY BE REACHED WITHIN TEN DAYS WHILE EXPRESSING GRATITUDE FOR THE WHITE HOUSE'S WILLINGNESS TO ACT QUICKLY CALIFORNIA GOVERNOR PETE WILSON SAID THE REQUEST SHOULD COME WITH A BIG WARNING THAT THE FINAL TAB COULD BE MUCH LARGER I AM VERY WARY OF CONGRESS ACTING ON THIS AND SAYING O. K. WE'VE DEALT WITH THAT CRISIS THAT'S ALL THERE IS SAID GOVERNOR WILSON WHOSE RECESSION WRACKED ADMINISTRATION WAS FACING A SEVERE BUDGET CRUNCH EVEN BEFORE THE EARTHQUAKE FOR MANY CALIFORNIA MANUFACTURERS THE EARTHQUAKE COULD WORSEN AN ALREADY TROUBLED SITUATION DUN AND BRADSTREET INFORMATION SERVICES SAID YESTERDAY THAT IT CONSIDERED FIFTY TWO PERCENT OF FIRMS WITHIN A FORTY MILE RADIUS OF THE EARTHQUAKE'S LOS ANGELES EPICENTER TO BE IN HIGH RISK CATEGORIES OF FINANCIAL CONDITION EVEN BEFORE THE DISASTER THAT COMPARES TO AN AVERAGE OF BETWEEN THIRTY TO THIRTY FIVE PERCENT NATIONWIDE THIS COULD MEAN A LONG AND TROUBLED RECOVERY FOR THESE BUSINESSES IF THEY CAN RECOVER AT ALL SAID DUN AND BRADSTREET ECONOMIST DAVID T. KRESGE AS YOUR DECEMBER TWENTY SECOND ARTICLE QUOTE C. F. T. C. SUSPENDS THREE TRADERS CONVICTED AFTER STING OPERATION QUOTE LACKED ANY COMMENT FROM THE PERSPECTIVE OF THE U. S. FUTURES INDUSTRY WE ARE COMPELLED TO WRITE THIS LETTER ON BEHALF OF THE MEMBERS OF THE CHICAGO BOARD OF TRADE THE C. B. T. IS ON RECORD WITH THE COMMODITY FUTURES TRADING COMMISSION AS BEING OPPOSED TO THE ACTION REFERRED TO IN THE ARTICLE THE MANNER IN WHICH THIS ACTION WAS TAKEN EVIDENCES THE COMMISSION'S GROSSLY UNFAIR TREATMENT OF THESE INDIVIDUALS AND HIGHLIGHTS A BUREAUCRATIC PROCESS THAT AMOUNTS TO REGULATORY OVERKILL THE INDIVIDUALS IN QUESTION ARE CURRENTLY SUBJECT TO C. F. T. C. ENFORCEMENT ACTIONS PENDING BEFORE THE COMMISSION ANY DECISION REGARDING THEIR FLOOR TRADING STATUS SHOULD BE THE RESULT OF A CAREFUL DETAILED ANALYSIS AND FAIR JUDGMENT OF THE INDIVIDUAL SPECIFIC CONDUCT AT ISSUE THE C. F. T. C.'S ENFORCEMENT ACTION APPEAL SHOULD PROVIDE THAT PROCESS USE OF THE FLOOR TRADER DENIAL PROCESS WHILE ENFORCEMENT ACTIONS ARE PENDING AT THE C. F. T. C. IGNORES THE CRITICAL SPECIFIC CIRCUMSTANCES OF EACH INDIVIDUAL'S CASE AND DENIES THEM THE FUNDAMENTAL FAIRNESS TO WHICH THEY ARE ENTITLED IT SHOULD BE OBVIOUS TO ANYONE OF REASONABLE INTELLIGENCE AND FAIRNESS THAT THIS FLOOR TRADER REGISTRATION DENIAL AMOUNTS TO A JUDGMENT BY THE C. F. T. C. REGARDING THE STATUS OF THESE INDIVIDUALS AS FLOOR TRADERS WHILE THAT PRECISE ISSUE IS PENDING BEFORE THE COMMISSION IN THE ENFORCEMENT PROCEEDINGS THE CHICAGO BOARD OF TRADE FEELS IT IS MANIFESTLY UNFAIR FOR THE C. F. T. C. TO PREJUDGE THE FINAL DETERMINATION OF THESE ENFORCEMENT PROCEEDINGS THROUGH THE BACK DOOR MEANS OF DENYING FLOOR TRADER REGISTRATION STATUS BEER DRINKERS ARE THIRSTING FOR NEW BRANDS AND LOW PRICES AND BREWERS ARE SERVING THEM JUST WHAT THEY WANT AS CONSUMERS EMBRACE SOME OF THE NEW BEERS THE NATION'S BIG BREWERS ARE PRODUCING THEIR PENNY PINCHING IS FORCING THE INDUSTRY TO KEEP A LID ON PRICES AND TO LOOK FOR MORE LUCRATIVE MARKETS OVERSEAS THE PAST YEAR'S PRESSURE ON PRICES QUOTE WAS AS TOUGH AS I'VE EVER SEEN QUOTE SAYS BILL HENRY PRESIDENT OF DETROIT'S STROH BREWERY COMPANY IT MAY NOT HAVE SEEMED POSSIBLE BUT THE BEER MARKET GOT WORSE LAST YEAR FOR THE INDUSTRY'S BIG PLAYERS WHO PREDICT NINETEEN NINETY FOUR WILL BE JUST AS BAD WHAT GROWTH THERE HAS BEEN THE TOTAL U. S. BEER MARKET INCREASED ONLY ZERO POINT TWO PERCENT IN NINETEEN NINETY THREE AFTER YEARS OF LITTLE OR NO GROWTH HAS LARGELY GONE TO IMPORTS AND MICROBREWERY BEERS AS A GROUP THE BIGGEST BREWERS HAVE LOST MARKET SHARE FRANK WALTERS RESEARCH DIRECTOR OF IMPACT AN ALCOHOLIC BEVERAGE INDUSTRY PUBLICATION ESTIMATES THAT WINE SALES LAST YEAR WERE DOWN BETWEEN THREE PERCENT AND FOUR PERCENT AND THAT SALES OF DISTILLED SPIRITS DECLINED BETWEEN ONE PERCENT AND TWO PERCENT CONSUMERS MEANWHILE ARE CONTINUING TO SWITCH TO LIGHT BEER THEY ARE ALSO BUYING CHEAPER BEER MUCH OF IT FROM DISCOUNT SUPERMARKET CHAINS IN CALIFORNIA EVEN POPULAR PRICED LABELS LIKE BUSCH AND OLD MILWAUKEE ARE SUFFERING CORPORATE RESPONSES TO THE TOUGH MARKETPLACE HAVE INCLUDED LOWERING PRICES INTENSIFYING BAR AND STORE PROMOTIONS AND MIMICKING ONE ANOTHER'S PRICE PROMOTIONS THE BREWERS' STRATEGY SAYS JERRY STEINMAN PUBLISHER OF BEER MARKETER'S INSIGHTS IS KILL THE OTHERS DON'T GIVE ANY OTHER COMPANY ANY ROOM TO MANEUVER OR CUT INTO YOUR VOLUME BREWERY EXECUTIVES SAY THEIR TOP STRATEGY FOR NINETEEN NINETY FOUR IS TO INTRODUCE NEW BRANDS TODAY'S CONSUMER IS INTERESTED IN NEW EXPERIENCES SAYS TOM SHARBAUGH VICE PRESIDENT OF BRAND MANAGEMENT AT ANHEUSER BUSCH COMPANIES THE NATION'S BIGGEST BREWER WHOSE MARKET SHARE FELL SLIGHTLY LAST YEAR DESPITE RECORD SALES THEY HAVE A NEW FOUND CURIOSITY ABOUT NEW TASTES AND THEY DEMAND VARIETY MILLER BREWING COMPANY THE NUMBER TWO BREWER AND A UNIT OF PHILIP MORRIS COMPANIES HAS BEEN THE MOST AGGRESSIVE IN INTRODUCING NEW PRODUCTS IN THE PAST FEW YEARS PERHAPS TAKING A LESSON FROM ITS HIGHLY SUCCESSFUL ROLLOUT OF MILLER GENUINE DRAFT IN THE LATE NINETEEN EIGHTIES LAST YEAR THE COMPANY ADDED EXTENSIONS TO ITS MILLER RESERVE SPECIALTY BEER LINES AND INTRODUCED ICEHOUSE AN ICE BEER ICE BEERS PROMOTED AS SMOOTHER BREWS ARE PRODUCED BY CHILLING BEER UNTIL IT FORMS ICE CRYSTALS AND THEN REMOVING THOSE CRYSTALS NEW PRODUCTS WILL CONTINUE TO BE QUOTE AN IMPORTANT ASPECT OF OUR FUTURE GROWTH QUOTE SAYS RICHARD STRUP VICE PRESIDENT OF MARKETING AT MILLER MILLER WAS THE ONLY BIG BREWER TO INCREASE MARKET SHARE LAST YEAR A FEAT COMPANY OFFICIALS ATTRIBUTED TO THE ACQUISITION OF RIGHTS TO DISTRIBUTE CANADA'S MOLSON IN THE U. S. THE SUCCESSFUL REPOSITIONING OF MILLER HIGH LIFE AS A LOWER PRICED BRAND AND NEW PRODUCT INTRODUCTIONS BUT THE COMPANY'S FLAGSHIP BRAND MILLER LITE LOST GROUND MILLER SAYS A MARKETING PLAN AIMED AT MAKING MILLER LITE RELEVANT TO A NEW GENERATION IS ON TRACK ANHEUSER'S ONLY NEW BEER IN NINETEEN NINETY THREE WAS ICE DRAFT FROM BUDWEISER A BREW THE COMPANY THINKS WILL COMPETE AS MUCH IN THE CLEAR BOTTLE PACKAGED DRAFT SEGMENT LED BY MILLER GENUINE DRAFT AS IN THE ICE SEGMENT MR. SHARBAUGH SAYS THE COMPANY WILL INTRODUCE ANOTHER NEW BRAND IN MID NINETEEN NINETY FOUR AND HAS A NUMBER OF PROMISING NEW PRODUCTS PERCOLATING HE SAYS COORS BREWING COMPANY WHICH LAST WEEK ANNOUNCED PLANS TO LAUNCH ITS OWN ICE BEER COORS ARTIC ICE INTENDS TO INTRODUCE THIS YEAR A SPRING BOCK BEER A SUMMER WHEAT BREW AND AN OCTOBERFEST BEER AND ITS CLEAR MALT PRODUCT ZIMA CONTINUES TO ADD SALES BOB JOANIS VICE PRESIDENT OF NEW PRODUCT MARKETING FOR THE GOLDEN COLORADO UNIT OF ADOLPH COORS COMPANY SAYS NEW BRANDS GIVE THE BREWER A CHANCE TO INTRODUCE HIGHER PRICED BEERS TO BALANCE OUT THE PRICE PROMOTIONS ON OLDER PRODUCTS BUT FOR COORS THE NATION'S THIRD LARGEST BREWER NEW BRANDS MAY ALSO BE A MATTER OF SURVIVAL SALES OF ITS TOP BREW COORS LIGHT GREW TWO POINT FOUR PERCENT LAST YEAR AND NOW ACCOUNT FOR SIXTY SIX PERCENT OF THE COMPANY'S TOTAL VOLUME AS A RESULT COORS IS THE MOST VULNERABLE SHOULD CONSUMERS' LOVE AFFAIR WITH LIGHT BEER BEGIN TO FADE IT'S THE ALL YOUR EGGS IN ONE BASKET PROBLEM SAYS MR. JOANIS A MULTIPLICITY OF BRANDS IS WHAT THE FUTURE IS ALL ABOUT STROH THE U. S. INDUSTRY'S FOURTH LARGEST PLAYER INTENDS TO CONTINUE INTRODUCING SEASONAL BRANDS UNDER THE AUGSBERGER LABEL AND WILL ALSO LAUNCH BULL ICE A NEW MALT LIQUOR ICE BEER STROH'S SALES VOLUME DROPPED NINE POINT THREE PERCENT LAST YEAR AS ITS POPULAR PRICED BRANDS SUCH AS OLD MILWAUKEE SUFFERED FROM UNDERCUTTING BY EVEN LOWER PRICED BRANDS SUCH AS ANHEUSER'S NATURAL LIGHT QUOTE WE HOPE THAT THINGS WILL STABILIZE THIS YEAR AND WE WON'T SEE AS MUCH OF THAT GOING ON QUOTE SAYS STROH'S MR. HENRY THE MAJOR BEER COMPANIES SAY THEIR NUMBER TWO PRIORITY IS TO INCREASE FOREIGN SALES THE INTERNATIONAL BEER MARKET IS THREE AND ONE HALF TIMES BIGGER THAN THE U. S. MARKET SAYS JACK PURNELL CHAIRMAN OF ANHEUSER BUSCH'S INTERNATIONAL UNIT U. S. BREWERS NONETHELESS SAY INTERNATIONAL SALES AMOUNT TO ONLY A COUPLE OF PERCENTAGE POINTS OF THEIR BUSINESS THERE'S NOT A LOT OF OPPORTUNITY FOR GROWTH IN THE U. S. ADDS MIKE MARRANZINO VICE PRESIDENT OF INTERNATIONAL OPERATIONS AT COORS THE BEVERAGE BUSINESS WORLD WIDE IS VIRTUALLY UNDEVELOPED IF YOU CAN PARTICIPATE IN JUST A FEW PLACES YOU HAVE REAL GROWTH OPPORTUNITY ANHEUSER HAS BEEN DEVELOPING PARTNERSHIPS WITH BREWERS IN OTHER COUNTRIES FOR TWELVE YEARS AND IN NINETEEN NINETY THREE THE COMPANY CLOSED FOUR NEW INTERNATIONAL DEALS A FOUR HUNDRED SEVENTY SEVEN MILLION DOLLAR EQUITY INVESTMENT IN MEXICAN BREWER GRUPO MODELO S. A. A JOINT VENTURE WITH JAPAN'S KIRIN BREWERY COMPANY WHICH WILL SELL BUDWEISER IN JAPAN A FIVE PERCENT EQUITY INVESTMENT IN TSINGTAO BREWERY COMPANY CHINA'S LARGEST BREWER AND AN AGREEMENT WITH COMPANY BIRRA PERONI INDUSTRIALE OF ITALY FOR DISTRIBUTION OF BUDWEISER IN THAT COUNTRY STROH ALREADY SELLS IN ABOUT FIFTY COUNTRIES WHERE ITS BRANDS HAVE BEEN GROWING AT DOUBLE DIGIT RATES FOR THE PAST SEVEN YEARS SAYS MR. HENRY HE SEES MEXICO AS A DIFFICULT MARKET BECAUSE OF DISTRIBUTION PROBLEMS BUT ONE WITH THE GREATEST POTENTIAL FOR AMERICAN BEERS THIS YEAR COORS WILL COMPLETE THE PURCHASE OF A BREWERY IN SPAIN AND THE CONSTRUCTION OF A BREWERY IN KOREA IN NINETEEN NINETY THREE THE COMPANY ENTERED ITALY IRELAND AND EXPANDED ITS BUSINESS IN THE UNITED KINGDOM BRINGING ITS INTERNATIONAL MARKETS TO TWENTY MR. MARRANZINO SEES INDIA CHINA AND SOUTH AMERICA AS THE GREATEST POTENTIAL MARKETS FOR EXPANSION AT HOME BEER PRICES AREN'T EXPECTED TO RISE THE BIG BREWERS WHILE HOPEFUL THAT THE SEVERE PRICE CUTTING OF NINETEEN NINETY THREE IS INDEED A THING OF THE PAST NEVERTHELESS SAY THEY WILL MEET COMPETITORS' PRICES IN NINETEEN NINETY FOUR MILLER'S MR. STRUP PLEDGES I'M GOING TO MAKE SURE WE MAINTAIN PRICE COMPETITIVENESS ACROSS THE COUNTRY A LIMITED PARTNERSHIP THAT FINANCED EARLY RESEARCH AND PRODUCT DEVELOPMENT AT STORAGE TECHNOLOGY CORPORATION FILED A LAWSUIT IN A STATE COURT ALLEGING BREACH OF A NINETEEN NINETY ONE SETTLEMENT AND SEEKING DAMAGES THE PARTNERSHIP FORMERLY STORAGE TECHNOLOGY PARTNERS TWO RAISED SOME FIFTY MILLION DOLLARS IN NINETEEN EIGHTY ONE TO FINANCE RESEARCH IT SETTLED CLAIMS TO THE WORK IN NINETEEN NINETY ONE BUT NOW SAYS STORAGE TECHNOLOGY IS USING THE BASIC TECHNOLOGY VIOLATING THE AGREEMENT THE SUIT FILED IN BOULDER COUNTY DISTRICT COURT CLAIMS SOFTWARE AND OTHER TECHNOLOGY RIGHTS AND SEEKS DAMAGES OF MORE THAN ONE POINT FOUR BILLION DOLLARS A SPOKESMAN FOR STORAGE TECHNOLOGY LOUISVILLE COLORADO SAID THE SUIT IS WITHOUT MERIT QUOTE THERE IS NO POSSIBILITY THAT OUR BUSINESS COULD BE AFFECTED IN ANY WAY BY THE PATENT CLAIMS INVOLVING STP THE SECOND QUOTE THE SPOKESMAN SAID ALL PATENTS CLAIMED BY STP THE SECOND ARE FULLY CROSS LICENSED HE SAID THE PARTNERSHIP IS NOW CALLED STUFF TECHNOLOGY PARTNERS TWO AND ITS MANAGING GENERAL PARTNER IS OPTICAL TECHNOLOGY CORPORATION OF DENVER SEPARATELY STORAGE TECHNOLOGY REPORTED FOURTH QUARTER NET INCOME OF SIX POINT THREE MILLION DOLLARS OR EIGHT CENTS A SHARE AFTER AN ACQUISITION RELATED PRETAX CHARGE OF FOUR POINT NINE MILLION DOLLARS COMPARED WITH A YEAR EARLIER NET LOSS OF TEN MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE FOURTH QUARTER REVENUE FELL TO FOUR HUNDRED POINT TWO MILLION DOLLARS COMPARED WITH FOUR HUNDRED TWENTY ONE POINT THREE MILLION DOLLARS IN THE YEAR EARLIER PERIOD THE RESULTS WERE WELL ABOVE ANALYSTS' FORECASTS OF A LOSS OF FIVE CENTS A SHARE HOWEVER STORAGE TECHNOLOGY SAID IT WOULD REPORT A LOSS IN THE FIRST QUARTER FOLLOWED BY IMPROVEMENT IN THE SECOND QUARTER THE EARNINGS WERE ANNOUNCED YESTERDAY AFTER THE END OF TRADING STORAGE TECHNOLOGY SHARES CLOSED AT THIRTY FOUR POINT ONE TWO FIVE DOLLARS UP TWENTY FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING U. S. JAPAN TRADE TALKS REMAINED DEADLOCKED AFTER NEGOTIATORS WRAPPED UP TWO DAYS OF TALKS RAISING THE POSSIBILITY THAT THE TWO SIDES WON'T BE ABLE TO REACH AN ACCORD BEFORE A SUMMIT MEETING NEXT MONTH U. S. OFFICIALS USED UNUSUALLY BLUNT LANGUAGE TO DESCRIBE THE DEADLOCK SAYING THEY HAD MANAGED ONLY QUOTE MARGINAL QUOTE PROGRESS IN SOME AREAS AND WERE AT AN QUOTE IMPASSE QUOTE ON OTHERS THE TWO SIDES ARE EXPECTED TO CONTINUE THE NEGOTIATIONS OVER THE SO CALLED FRAMEWORK TALKS LATE NEXT WEEK IN TOKYO THE U. S. AND JAPAN WANT TO WRAP UP AN AGREEMENT IN TIME FOR A SUMMIT MEETING IN WASHINGTON FEBRUARY ELEVENTH BETWEEN PRESIDENT CLINTON AND JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA THE POLITICAL TURMOIL IN JAPAN HAS MADE THE ALREADY DIFFICULT TALKS EVEN TOUGHER ROBERT HORMATS A GOLDMAN SACHS AND COMPANY EXECUTIVE AND FORMER TRADE NEGOTIATOR LIKENED THE NEGOTIATIONS TO A GREEK TRAGEDY BECAUSE THE TWO SIDES ARE HEADING FOR COLLISION THAT BOTH CAN CLEARLY SEE BUT NEITHER CAN AVOID FOR THE U. S. PRESIDENT CLINTON HAS MADE JAPAN HIS TOP TRADE PRIORITY AND IS COMMITTED TO WRESTING PLEDGES FROM JAPAN TO INCREASE IMPORTS THE U. S. IS PRESSING JAPAN TO AGREE TO SPECIFIC TRADE TARGETS AND WAYS TO MEASURE PROGRESS TOWARD THOSE GOALS ANY RETREAT WOULD BE AN EMBARRASSING SETBACK FOR THE ADMINISTRATION FOR JAPAN ITS TRADE NEGOTIATORS HAVE TURNED THE TRADE FIGHT INTO A TEST OF NATIONAL WILL PORTRAYING JAPAN AS THE DEFENDER OF THE FREE TRADE SYSTEM WITH THE U. S. CAST AS THE BULLY MEANWHILE THE POLITICAL INSTABILITY HAS GIVEN GREATER POWER TO JAPANESE BUREAUCRATS WHO HAVE A BIG STAKE IN RESISTING COMPROMISE BECAUSE GREATER FOREIGN COMPETITION COULD DIMINISH THEIR POWER THE U. S. HAS BEEN TRYING TO GET JAPANESE POLITICAL LEADERS INVOLVED ON THE THEORY THAT THEY WOULD PLACE GREATER EMPHASIS ON MAINTAINING CORDIAL RELATIONS WITH THE U. S. THAN WOULD THE BUREAUCRATS BUT SO FAR THE POLITICAL LEADERS HAVE BEEN ABSORBED WITH THE DOMESTIC BATTLE OVER POLITICAL REFORM AND HAVE SHOWN NO SIGNS OF INTERCEDING THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ENSERCH CORPORATION ONE HUNDRED FIFTY MILLION DOLLARS OF NOTES DUE FEBRUARY FIRST TWO THOUSAND FOUR PRICED AS SIX POINT THREE SEVEN FIVES AT NINETY NINE POINT SIX SEVEN ONE TO YIELD SIX POINT FOUR TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SEVENTY BASIS POINTS ABOVE TREASURYS THE NOTES ARE RATED B. A A TWO BY MOODY'S INVESTORS SERVICE INCORPORATED AND TRIPLE B. BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED GENEVA STEEL COMPANY ONE HUNDRED NINETY MILLION DOLLARS OF SENIOR NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AT PAR TO YIELD NINE POINT FIVE PERCENT THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLE B. ONE BY MOODY'S AND SINGLE BPLUS BY S. AND P. THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INCORPORATED INDIANAPOLIS POWER AND LIGHT COMPANY ONE HUNDRED EIGHTY MILLION DOLLARS OF FIRST MORTGAGE BONDS IN TWO PARTS PRICED BY UNDERWRITERS LED BY DILLON READ AND COMPANY ACCORDING TO M. C. M. CORPORATEWATCH THE FIRST TRANCHE EIGHTY MILLION DOLLARS OF FIRST MORTGAGE BONDS DUE FEBRUARY FIRST TWO THOUSAND FOUR WAS PRICED AS SIX POINT OH FIVES AT NINETY NINE POINT EIGHT TWO ONE TO YIELD SIX POINT OH SEVEN FOUR PERCENT THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF THIRTY FIVE BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE ONE HUNDRED MILLION DOLLARS OF FIRST MORTGAGE BONDS DUE FEBRUARY FIRST TWO THOUSAND TWENTY FOUR WAS PRICED AS SEVEN POINT OH FIVES AT NINETY NINE POINT FIVE SEVEN FIVE TO YIELD SEVEN POINT OH EIGHT FOUR PERCENT THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SIXTY FIVE BASIS POINTS ABOVE TREASURYS THE BONDS ARE RATED A A TWO BY MOODY'S AND DOUBLE A MINUS BY S. AND P. INDIANAPOLIS POWER AND LIGHT IS A UNIT OF IPALCO ENTERPRISES INCORPORATED NEWS AMERICA HOLDINGS INCORPORATED ONE HUNDRED FIFTY MILLION AUSTRALIAN DOLLARS ONE HUNDRED FIVE POINT FOUR MILLION U. S. DOLLARS OF DEBENTURES DUE FEBRUARY SEVENTH TWO THOUSAND FOURTEEN PRICED AT PAR TO YIELD EIGHT POINT SIX TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE IS RATED B. A ONE BY MOODY'S AND TRIPLE B. MINUS BY S. AND P. AND WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY NEWS AMERICA HOLDINGS IS A UNIT OF NEWS CORPORATION YPF S. A. THREE HUNDRED FIFTY MILLION DOLLARS OF NEGOTIABLE OBLIGATION BONDS DUE FEBRUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS EIGHTS AT NINETY NINE POINT SEVEN SEVEN TO YIELD EIGHT POINT OH THREE THREE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF TWO HUNDRED THIRTY TWO BASIS POINTS ABOVE TREASURYS RATED SINGLE B. ONE BY MOODY'S AND DOUBLE B. MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY C. S. FIRST BOSTON INCORPORATED AMPAL AMERICAN ISRAEL CORPORATION FOUR MILLION UNITS PRICED AT TWELVE POINT ONE TWO FIVE DOLLARS APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED EACH UNIT CONSISTS OF ONE SHARE OF ITS CLASS A STOCK AND ONE REDEEMABLE WARRANT TO PURCHASE ONE SHARE OF CLASS A COMMON STOCK CRISTALERIAS DE CHILE S. A. INITIAL PUBLIC OFFERING OF THREE POINT SEVEN MILLION AMERICAN DEPOSITARY SHARES PRICED MONDAY AT TWENTY THREE POINT EIGHT SEVEN FIVE DOLLARS APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY HILITE INDUSTRIES INCORPORATED INITIAL PUBLIC OFFERING OF ONE MILLION COMMON SHARES PRICED AT NINE DOLLARS APIECE THROUGH UNDERWRITERS LED BY FAHNESTOCK AND COMPANY HUGOTON ENERGY CORPORATION INITIAL PUBLIC OFFERING OF THREE MILLION COMMON SHARES PRICED AT TEN DOLLARS APIECE THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION K. L. A. INSTRUMENTS CORPORATION TWO MILLION SHARES PRICED AT THIRTY ONE DOLLARS AND FIFTY CENTS APIECE IN AN OFFERING LED BY UNDERWRITERS KIDDER PEABODY AND COMPANY AND MORGAN STANLEY AND COMPANY SAN ANTONIO TEXAS SEVEN HUNDRED EIGHTY ONE POINT ONE MILLION DOLLARS SERIES NINETEEN NINETY FOUR ELECTRIC AND GAS SYSTEM REVENUE REFUNDING BONDS PRICED BY A GOLDMAN SACHS AND COMPANY GROUP YIELDS FOR REOFFERED BONDS RANGE FROM THREE POINT FIVE PERCENT IN NINETEEN NINETY SEVEN TO FIVE POINT TWO EIGHT PERCENT IN TWO THOUSAND FOURTEEN BONDS DUE IN TWO THOUSAND ONE AND TWO THOUSAND SIX ARE DERIVATIVES TOTALING NINETY TWO MILLION DOLLARS WHICH AREN'T FORMALLY REOFFERED MOODY'S HAS RATED THE BONDS DOUBLE A ONE S. AND P. HAS ASSIGNED A DOUBLE A RATING AND FITCH INVESTORS SERVICE INCORPORATED HAS ASSIGNED A DOUBLE A PLUS RATING WASHINGTON PUBLIC POWER SUPPLY SYSTEM SIX HUNDRED SEVENTY FOUR POINT THREE MILLION DOLLARS SERIES NINETEEN NINETY FOUR A REFUNDING BONDS FOR NUCLEAR PROJECT NUMBER TWO PRICED BY A C. S. FIRST BOSTON INCORPORATED GROUP INCLUDED IN THE ISSUE ARE SIX HUNDRED SIXTY NINE POINT ONE MILLION DOLLAR CURRENT INTEREST BONDS YIELDS FOR REOFFERED BONDS RANGE FROM THREE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT FIVE PERCENT IN TWO THOUSAND ELEVEN BONDS DUE IN TWO THOUSAND ONE AND TWO THOUSAND SIX ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE COMPANY BONDS DUE IN TWO THOUSAND NINE ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION THE INSURED BONDS CARRY TRIPLE A RATINGS FROM BOTH MOODY'S AND S. AND P. UNINSURED BONDS HAVE DOUBLE A RATINGS FROM MOODY'S S. AND P. AND FITCH THE SIX HUNDRED SIXTY NINE POINT ONE MILLION DOLLAR PORTION OF THE OFFERING INCLUDES FIFTY MILLION DOLLARS OF AUCTION RATE SECURITIES AND FIFTY MILLION DOLLARS OF INVERSE FLOATERS THOSE DERIVATIVES WHICH ARE UNINSURED ARE DUE IN TWO THOUSAND TWELVE THE FIVE POINT TWO MILLION DOLLAR COMPOUND INTEREST BONDS ARE PRICED TO YIELD FIVE POINT FIVE PERCENT AT THEIR MATURITY IN TWO THOUSAND NINE THEY ARE INSURED BY F. G. I. C. AND CARRY TRIPLE A RATINGS FROM BOTH MOODY'S AND S. AND P. FEDERAL HOME LOAN MORTGAGE CORPORATION FIVE HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS AND COMPANY THE OFFERING SERIES ONE THOUSAND SIX HUNDRED EIGHTY SEVEN IS BACKED BY THE AGENCY'S FIFTEEN YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN PERCENT AND WEIGHTED AVERAGE MATURITY OF ONE HUNDRED SEVENTY NINE MONTHS FEDERAL HOME LOAN MORTGAGE CORPORATION THREE HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INCORPORATED THE OFFERING SERIES ONE THOUSAND SIX HUNDRED EIGHTY SIX IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT NINE SIX PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FORTY EIGHT MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION ONE BILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY AND COMPANY THE OFFERING SERIES NINETEEN NINETY FOUR G. TWO IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION FIVE HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INCORPORATED THE OFFERING SERIES NINETEEN NINETY FOUR TO TWENTY EIGHT IS BACKED BY THE AGENCY'S THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SIX POINT NINE FIVE PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INCORPORATED THE OFFERING SERIES NINETEEN NINETY FOUR TO TWENTY SIX IS BACKED BY THE AGENCY'S PRINCIPAL ONLY STRIPPED THIRTY YEAR SEVEN POINT FIVE PERCENT MORTGAGE SECURITIES FROM STRIPPED TRUST TWO HUNDRED FIFTY FOUR ABBEY NATIONAL TREASURY SERVICES P. L. C. U. K. PARENT TWO HUNDRED MILLION CANADIAN DOLLARS OF SIX POINT SEVEN FIVE PERCENT EUROBONDS DUE FEBRUARY TWENTY FIFTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT THREE FIVE FIVE VIA SALOMON BROTHERS INTERNATIONAL LIMITED REOFFERED AT NINETY NINE POINT SEVEN OH FIVE TO YIELD SIX POINT SEVEN NINE PERCENT MARGIN OF TWENTY SIX BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND GUARANTOR ABBEY NATIONAL P. L. C. FEES TWO BANCO DI NAPOLI LONDON BRANCH ITALIAN PARENT ONE HUNDRED FIFTY MILLION DOLLARS OF FLOATING RATE DEPOSITARY RECEIPTS DUE FEBRUARY NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT TWO VIA MERRILL LYNCH INTERNATIONAL LIMITED PAYABLE SEMIANNUALLY AT FIFTEEN BASIS POINTS OVER DOLLAR LONDON INTERBANK OFFERED RATE FEES ZERO POINT TWO BANGKOK LAND LIMITED THAI PARENT FOUR HUNDRED MILLION SWISS FRANCS OF PRIVATELY PLACED THREE POINT ONE TWO FIVE PERCENT NOTES CONVERTIBLE INTO SHARES OF BANGKOK LAND PUBLIC COMPANY DUE MARCH THIRTY FIRST TWO THOUSAND ONE AT PAR VIA NOMURA BANK SWITZERLAND NOTES EXCHANGEABLE FEBRUARY TWENTY FIRST TO MARCH SIXTEENTH TWO THOUSAND ONE AT EXPECTED PREMIUM FIVE PERCENT TERMS TO BE FIXED JANUARY THIRTY FIRST FEES TWO BAYERISCHE LANDESANSTALT FUER AUFBAUFINANZIERUNG GERMANY TEN BILLION SPANISH PESETAS OF SEVEN POINT EIGHT PERCENT MATADOR BONDS DUE FEBRUARY ELEVENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT FOUR FIVE VIA DEUTSCHE SAE AND BANCO DE NEGOCIOS ARGENTARIA S. A. BONDS YIELD SEVEN POINT EIGHT FOUR PERCENT AT NINETY NINE POINT SEVEN CO MANAGERS' BREAK EVEN PRICE FEES ONE POINT EIGHT SEVEN FIVE LESS ZERO POINT ONE TWO FIVE FOR LEAD MANAGER BAYERISCHE LANDESBANK GIROZENTRALE GERMANY FIVE HUNDRED MILLION FRENCH FRANCS OF C. A. C. FORTY QUOTE SYNTHETIC CONVERTIBLE QUOTE EUROBONDS DUE FEBRUARY TWENTY FIFTH TWO THOUSAND TWO AT ISSUE PRICE PAR VIA CAISSE DES DEPOTS ET CONSIGNATIONS AND BAYERISCHE POUND ISSUE SPLIT INTO CLASS A TRANCHE OF ZERO COUPON NOTES AND CLASS B. TRANCHE OF TWO POINT TWO FIVE PERCENT NOTES TRANCHE SIZES UNDECIDED BONDS CONVERTIBLE INTO CASH AMOUNT EQUAL TO VALUE OF C. A. C. FORTY SHARES SUBJECT TO REDEMPTION FORMULAS MATURITY REDEMPTION AT HIGHER OF BONDS' NOMINAL VALUE OR CACF MULTIPLED BY CONVERSION PARITY CACF IS AVERAGE OF C. A. C. FORTY INDEX LEVEL ON JANUARY TWENTY EIGHTH TWO THOUSAND TWO AND JANUARY TWENTY NINTH TWO THOUSAND TWO AT FOUR DIFFERENT TIMES DAILY CONVERSION PARITY FOR TRANCHE A AT NOMINAL AMOUNT DIVIDED BY PRODUCT OF CACO MULTIPLIED BY ONE POINT OH FIVE TWO SIX THREE CONVERSION PARITY FOR TRANCHE B. AT NOMINAL AMOUNT DIVIDED BY PRODUCT OF CACO MULTIPLIED BY ONE POINT TWO FIVE CACO IS AVERAGE OF C. A. C. FORTY INDEX LEVEL ON JANUARY TWENTY SEVENTH AND JANUARY TWENTY EIGHTH AT FOUR DIFFERENT TIMES DAILY PUT OPTION FROM FEBRUARY TWENTY SIXTH NINETEEN NINETY FIVE TO JANUARY TWENTY FOURTH TWO THOUSAND TWO AT PRICE EQUAL TO CACT MULTIPLIED BY CONVERSION PARITY WHERE CACT IS PREVAILING LEVEL OF C. A. C. FORTY INDEX FEES UNDISCLOSED BEAR STEARNS COMPANIES U. S. ONE HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY TWENTY SECOND TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE PAR VIA BEAR STEARNS INTERNATIONAL LIMITED PAYABLE SEMIANNUALLY AT ZERO POINT ONE TWO FIVE POINT BELOW SIX MONTH LIBOR MINIMUM COUPON FIVE POINT ONE TWO FIVE PERCENT FEES ZERO POINT THREE SEVEN FIVE BRITISH OXYGEN CORPORATION GROUP P. L. C. UNITED KINGDOM ONE HUNDRED TWENTY FIVE MILLION OF SIX POINT SEVEN FIVE PERCENT EUROBONDS DUE FEBRUARY EIGHTEENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT NINE ONE FIVE VIA CREDIT SUISSE FIRST BOSTON LIMITED REOFFERED AT NINETY NINE POINT TWO NINE TO YIELD SIX POINT EIGHT FIVE PERCENT A MARGIN OF FIFTY SEVEN BASIS POINTS OVER COMPARABLE U. K. GILT FEES TWO CREDIT LOCAL DE FRANCE FRENCH AGENCY ONE HUNDRED MILLION SWISS FRANCS OF TWO POINT TWO FIVE PERCENT PUBLIC BONDS DUE MARCH SIXTEENTH TWO THOUSAND FOUR PRICED AT PAR WITH WARRANTS ATTACHED FOR PURCHASE DIVIDEND RIGHT CERTIFICATES IN ROCHE HOLDING A. G. VIA MERRILL LYNCH CAPITAL MARKETS A. G. NOTES EXERCISABLE FROM MARCH TWENTY FIRST TO JANUARY TWENTY FOURTH NINETEEN NINETY SIX INTO DIVIDEND CERTIFICATES STRIKE PRICE SEVEN THOUSAND ONE HUNDRED FRANCS AND EQUITY CONTENT EIGHTY FIVE POINT TWO PERCENT FEES TWO POINT SEVEN FIVE DANISCO AS DENMARK ONE BILLION DANISH KRONER OF CONVERTIBLE BONDS DUE FEBRUARY TWENTY FIRST TWO THOUSAND FOUR AT ISSUE PRICE PAR VIA S. G. WARBURG SECURITIES LIMITED INDICATED COUPON FIVE PERCENT TO FIVE POINT TWO FIVE PERCENT TERMS TO BE FIXED BY TODAY BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT INDICATED PREMIUM SIXTEEN PERCENT TO TWENTY PERCENT FROM FEBRUARY TWENTY FIRST TO FEBRUARY SIXTH TWO THOUSAND FOUR CALLABLE IN FOURTH AND FIFTH YEARS SUBJECT TO SHARE PRICE BEING AT LEAST ONE HUNDRED THIRTY PERCENT OF CONVERSION PRICE THEREAFTER CALLABLE AT PAR FEES TWO POINT FIVE HALIFAX BUILDING SOCIETY U. K. SEVENTY FIVE MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY TWENTY FIFTH NINETEEN NINETY SIX AT ISSUE AND REOFFER PRICE PAR VIA PARIBAS CAPITAL MARKETS LIMITED PAYABLE QUARTERLY AT THREE MONTH DOLLAR LIBOR PLUS ONE POINT TWO FIVE POINT SUBJECT TO THE FOLLOWING LIBOR RANGES THREE PERCENT TO FOUR PERCENT FIRST SIX MONTHS RISING TO THREE POINT FIVE PERCENT TO SIX PERCENT LAST SIX MONTHS FEES UNDISCLOSED ITOCHU FUEL CORPORATION JAPAN ONE HUNDRED FIFTY MILLION DOLLARS OF ONE POINT FIVE PERCENT EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE FEBRUARY SEVENTEENTH NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA NIKKO EUROPE P. L. C. TERMS TO BE FIXED FEBRUARY FIRST WARRANTS EXERCISEABLE TO PURCHASE ORDINARY COMPANY SHARES AT INDICATED PREMIUM TWO POINT FIVE PERCENT FROM MARCH THIRD TO FEBRUARY THIRD NINETEEN NINETY EIGHT FEES TWO POINT FIVE LESS ZERO POINT TWO FOR LEAD MANAGER KEYNOTE U. S. FLOATING LIMITED KEYNOTE U. S. FIXED LIMITED AND KEYNOTE D. M. LIMITED SPECIAL PURPOSE VEHICLES ONE HUNDRED FIFTY MILLION DOLLARS OF COLLATERALIZED ENHANCED YIELD NOTES DUE MARCH SECOND TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE VIA CITIBANK INTERNATIONAL P. L. C. AND CITIBANK A. G. REOFFERED AT PAR NOTES COLLATERALIZED ON SECURITIES ISSUED BY SUPRANATIONAL AND FINANCIAL INSTITUTIONS NOTES PAY FIXED MINIMUM COUPON WHICH DECLINES OVER LIFE OF NOTES FROM NINETEEN NINETY SIX COUPON ENHANCEMENT PAID OUT OF CUMULATIVE NET GAINS ON TRADING ACCOUNT OPERATED BY KENMAR GLOBAL STRATEGIES INCORPORATED UP TO MAXIMUM COUPON WHICH INCREASES OVER LIFE OF NOTES EXCESS NET GAINS ADDED TO REDEMPTION VALUE OF BONDS PUT OPTION EXERCISABLE ANNUALLY FROM SECOND ANNIVERSARY FINAL TERMS TO BE FIXED FEBRUARY SECOND FEES UNDISCLOSED KEYNOTE U. S. FLOATING LIMITED NOTES PAYABLE SEMIANNUALLY NORDIC INVESTMENT BANK SUPRANATIONAL ONE POINT FIVE BILLION SWEDISH KRONOR OF SIX POINT TWO FIVE PERCENT GLOBAL BONDS DUE FEBRUARY EIGHTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT FOUR ONE SIX VIA MERRILL LYNCH BONDS YIELD SIX POINT THREE NINE PERCENT MARGIN OF ELEVEN BASIS POINTS OVER COMPARABLE SWEDISH GOVERNMENT BOND FEES ZERO POINT THREE SEVEN FIVE AZTEC MANUFACTURING COMPANY SAID IT EXPECTS EARNINGS OF THIRTY EIGHT CENTS TO FORTY CENTS A SHARE FOR ITS YEAR ENDING FEBRUARY TWENTY EIGHTH ABOUT DOUBLE THE YEAR EARLIER RESULTS FOR THE YEAR ENDED FEBRUARY TWENTY EIGHTH NINETEEN NINETY THREE THE CROWLEY TEXAS ELECTRICAL PRODUCTS CONCERN REPORTED NET INCOME OF ONE POINT ONE MILLION DOLLARS OR TWENTY CENTS A SHARE ON SALES OF THIRTY POINT EIGHT MILLION DOLLARS L. C. MARTIN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER TOLD SECURITIES ANALYSTS IN NEW YORK THAT THE PROFIT RISE WAS DUE TO THE COMPANY'S MOVE INTO CERTAIN ELECTRICAL PRODUCTS NICHE MARKETS MR. MARTIN ALSO SAID HE WOULD ASK AZTEC'S BOARD TO CONSIDER PAYING A CASH DIVIDEND QUOTE AT SOME LEVEL QUOTE NEAR THE END OF THE FISCAL YEAR AZTEC PAID A TWO POINT FIVE CENT A SHARE QUARTERLY DIVIDEND BEFORE SUSPENDING PAYMENTS IN MID NINETEEN NINETY THREE CARPENTER TECHNOLOGY CORPORATION SAID IT WILL REDEEM FIFTY FIVE POINT THREE MILLION DOLLARS OF HIGH COUPON DEBT AND TAKE A CHARGE AGAINST EARNINGS OF ONE POINT NINE MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE IN THE FISCAL THIRD QUARTER ENDING MARCH THIRTY FIRST TO COVER THE REDEMPTION PREMIUM IN THE YEAR EARLIER THIRD QUARTER THE READING PENNSYLVANIA MAKER OF SPECIALTY STEELS AND STEEL ALLOYS HAD NET INCOME OF TEN POINT TWO MILLION DOLLARS OR ONE DOLLAR AND TWENTY TWO CENTS A SHARE RESTATED TO REFLECT ACCOUNTING CHANGES ADOPTED IN THE FOURTH QUARTER SALES WERE ONE HUNDRED FIFTY FIVE POINT FOUR MILLION DOLLARS THE REDEMPTION WILL COVER THE ENTIRE OUTSTANDING PRINCIPAL AMOUNT OF THE COMPANY'S TWELVE AND SEVEN EIGHTHS PERCENT SINKING FUND DEBENTURES DUE TWO THOUSAND FOURTEEN THE REDEMPTION PRICE WILL BE ONE THOUSAND SIXTY ONE DOLLARS AND SIXTY TWO CENTS PER ONE THOUSAND DOLLAR PRINCIPAL AMOUNT THE REDEMPTION DATE IS MARCH FIRST FUNDING WILL COME FROM THE COMPANY'S CURRENT CREDIT FACILITIES OR THROUGH ISSUANCE OF MEDIUM TERM NOTES CARPENTER RECENTLY FILED A SHELF REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO ISSUE UP TO ONE HUNDRED MILLION DOLLARS OF MEDIUM TERM NOTES REDEMPTION AGENT IS MORGAN GUARANTY TRUST COMPANY NOT ALL THAT LONG AGO CHESTER GOULD THE AUTHOR OF THE DICK TRACY COMIC STRIP BECAME SOMETHING OF A PARIAH IN THE WORLD OF AMERICAN LIBERALS BECAUSE HE ALWAYS DEPICTED CAPTURED CRIMINALS WAILING QUOTE I DEMAND MY CONSTITUTIONAL RIGHTS QUOTE DICK TRACY'S VIEW OF CRIMINALS AS WELL CRIMINALS WAS LAUGHED AND LITIGATED OUT OF THE AMERICAN SYSTEM AS HOPELESSLY CONSERVATIVE INSTEAD WE WOULD SEEK MORE SOCIAL JUSTICE TO BALANCE CRIMINAL JUSTICE BUT ALONG THE WAY THE SCALES TIPPED OVER WE ARE WRITING THESE WORDS JUST A FEW HOURS BEFORE A LIBERAL PRESIDENT IS TO GO BEFORE THE NATION IN HIS STATE OF THE UNION ADDRESS AND ACCORDING TO NEWS REPORTS CALL FOR PUTTING ONE HUNDRED THOUSAND POLICE ON THE STREETS PUTTING THREE TIME FELONS IN PRISON FOREVER AND PUTTING BAD BOYS IN BOOT CAMPS IT LOOKS LIKE WE'RE ALL DICK TRACYS NOW AN AWFUL LOT OF INNOCENT AMERICANS HAVE HAD TO BE ROBBED BEATEN STABBED RAPED TORTURED AND MURDERED TO ARRIVE AT THE POINT WHERE A BILL CLINTON COULD FEEL COMPELLED TO GET TOUGH ON CRIME THE GOOD NEWS IS THAT THE AMERICAN SYSTEM MOST OF THE TIME IS ABLE TO BRING OFF A MID COURSE CORRECTION BEFORE THE TRAIN GOES OVER THE CLIFF PUBLIC FURY OVER VIOLENT CRIME IS OF COURSE CAUSING THE POLITICIANS TO ACT BUT THERE DOES SEEM TO BE A SCHOOL OF LIBERAL THOUGHT ON CRIME WHICH HOLDS THAT IF WE ENACT GUN CONTROL LAWS LIKE THE BRADY BILL WE'LL HAVE PRETTY MUCH DECAPITATED THE CRIME PROBLEM DREAM ON THE MOST RECENT WALL STREET JOURNAL SLASH N. B. C. NEWS POLL SUGGESTS THAT THE PUBLIC IS NOT THAT CONFUSED MOST PEOPLE RECOGNIZE WE HAVE TO DO SOMETHING ABOUT THE PEOPLE WHO PULL THE TRIGGERS TOO ASKED THIS MONTH ABOUT PUTTING HIGHER FEES ON GUN DEALERS TREASURY SECRETARY BENTSEN'S IDEA EIGHTEEN PERCENT SAID IT'D MAKE A MAJOR DIFFERENCE RAISING TAXES ON AMMUNITION SENATOR MOYNIHAN ATTRACTS SEVENTEEN PERCENT NOW LET'S GET SERIOUS ABOUT CRIME TOUGHEN THE PENALTIES FOR JUVENILES SEVENTY THREE PERCENT SEND THEM TO BOOT CAMPS SIXTY TWO PERCENT CAPITAL PUNISHMENT FOR MORE CRIMES SIXTY FOUR PERCENT LIFE FOR THREE TIME FELONS SEVENTY SIX PERCENT NO DOUBT PEOPLE CAN HAVE SERIOUS CONVERSATIONS ABOUT THE IMPLEMENTATION DETAILS BEHIND THIS GALE FORCE PUBLIC OUTCRY BUT THE DIRECTION IS CLEAR ENOUGH ONE IMPORTANT DETAIL THAT OCCURS TO US IS FEDERAL JUDICIAL APPOINTMENTS WE HOPE SOMEONE ASKS THE PRESIDENT AND THE PEOPLE WHO ADVISE HIM ON THESE APPOINTMENTS WHETHER THEY WILL SEEK A FEDERAL JUDICIARY OR SUPREME COURT THAT AGREES WITH MR. CLINTON'S STATE OF THE UNION VIEWS ON CRIMINAL JUSTICE OUR STRONG IMPRESSION IS THAT A LOT OF CIVILIAN LIBERALS ARE ON BOARD FOR LESS SOCIAL AND MORE JUSTICE IN THIS AREA BUT THAT THEIR RELATIVES IN THE LAW SCHOOLS AND LEGAL COMMUNITY STILL DON'T HAVE A CLUE FOR THEM AN EXTRA ONE HUNDRED THOUSAND POLICE WILL SIMPLY CAUSE AN EXPONENTIAL INCREASE IN DISMISSALS FOR POLICE ERROR BUT A CORNER HAS BEEN TURNED WE'LL SEE WHETHER THE POLITICAL SYSTEM IS RESPONSIVE ENOUGH TO MAKE THAT CORNER SAFE AGAIN VIEWLOGIC SYSTEMS INCORPORATED EXPECTS TO REPORT SHARPLY HIGHER FOURTH QUARTER NET INCOME OF FOUR POINT NINE MILLION DOLLARS OR THIRTY CENTS A SHARE ON A FORTY NINE PERCENT JUMP IN REVENUE TO TWENTY NINE POINT THREE MILLION DOLLARS ALAIN HANOVER PRESIDENT AND CHIEF EXECUTIVE SAID IN AN INTERVIEW MR. HANOVER ALSO SAID THE MARLBOROUGH MASSACHUSETTS SOFTWARE MAKER WOULD GROW AGAIN THIS YEAR BY QUOTE TWO AND A HALF TO THREE TIMES QUOTE THE TEN PERCENT ANNUAL GROWTH RATE THAT ANALYSTS PREDICT FOR THE REST OF THE ELECTRONIC DESIGN SOFTWARE MARKET IN THE YEAR BEFORE FOURTH QUARTER EARNINGS WERE THREE POINT FOUR MILLION DOLLARS OR TWENTY THREE CENTS A SHARE BEFORE A NONRECURRING CHARGE OF ONE POINT FOUR MILLION DOLLARS RELATED TO AN ACQUISITION REVENUE WAS NINETEEN POINT SEVEN MILLION DOLLARS VIEWLOGIC'S SOFTWARE IS USED BY AUTOMOBILE SEMICONDUCTOR AND COMPUTER MAKERS TO BUILD ELECTRONIC CIRCUITS IT ALLOWS THEM TO DESIGN THESE CIRCUITS WITHOUT BUILDING PROTOTYPES A BIOLOGIST AND A CHEMIST MAY HAVE FOUND A WAY TO INSTALL A BIOLOGICAL QUOTE SWITCH QUOTE IN HUMAN CELLS THAT COULD TURN GENES ON AND OFF AS NEEDED THE DISCOVERY MAY OPEN A NEW WAY TO TREAT HUMAN ILLS WITH GENE THERAPY IN EXISTING GENE THERAPY A PATIENT'S CELLS ARE REMOVED IMPLANTED WITH A GENE THAT TELLS CELLS TO MANUFACTURE A PROTEIN THAT HELPS FIGHT OR RESIST DISEASE AND THEN REINTRODUCED TO THE BLOODSTREAM BUT NOW RESEARCHERS ARE TALKING ABOUT A NEW ERA OF REGULATED GENE THERAPY IN WHICH ONE PILL SWITCHES ON A PROTEIN MAKING GENE AND THEN A SECOND PILL TURNS IT OFF IT MAY BE POSSIBLE FOR EXAMPLE FOR A DIABETIC TO GET AN INFUSION OF CELLS ENGINEERED WITH THE GENE SWITCH AND THE INSULIN GENE THEN INSTEAD OF TAKING SEVERAL INJECTIONS OF INSULIN A DAY THE PATIENT COULD TAKE NONTOXIC PILLS TO SWITCH THE INSULIN GENE ON AND OFF AS NEEDED CHEMOTHERAPY FOR CANCER MAY SOMEDAY BE A MATTER OF TAKING A PILL TO SWITCH ON POISON MAKING GENES IN CELLS THAT HAVE BEEN DESIGNED TO HOME IN ON A TUMOR LAST WEEK ARIAD PHARMACEUTICALS INCORPORATED A FLEDGLING BOSTON BIOTECHNOLOGY COMPANY ANNOUNCED THAT IT HAD LICENSED THE TECHNOLOGY IT'S THE FIRST TIME ANYONE HAS BEEN ABLE TO REGULATE GENE EXPRESSION SAYS ARIAD PRESIDENT HARVEY BERGER WHO PREDICTS THAT THE FIRST HUMAN EXPERIMENTS USING THE NEW TECHNIQUE MIGHT BEGIN AS EARLY AS NEXT YEAR THE INVENTION BY CHEMIST STUART L. SCHREIBER OF HARVARD UNIVERSITY AND BIOLOGIST GERALD R. CRABTREE OF STANFORD UNIVERSITY HAS BEEN STIRRING ENTHUSIASM AMONG BIOLOGISTS GENE THERAPISTS AND BIOTECHNOLOGY RESEARCHERS MICHAEL BLAESE CHIEF OF CLINICAL GENE THERAPY RESEARCH AT THE NEW NATIONAL CENTER FOR HUMAN GENOME RESEARCH IN BETHESDA MARYLAND NOTES THAT THE PROBLEM WITH CURRENT GENE THERAPY IS THAT THE IMPLANTED GENE FUNCTIONS CONTINUOUSLY SUPPLYING FOR INSTANCE A CHILD WITH A MISSING PROTEIN TO AVERT MENTAL RETARDATION BUT MANY GENES IN THE BODY SUCH AS THE ONE FOR INSULIN OR FOR VARIOUS HORMONES WORK ONLY INTERMITTENTLY HE EXPLAINS THE NEW GENE SWITCH TECHNIQUE OFFERS GENE THERAPY A REALLY UNIQUE SET OF TOOLS THE RESEARCHERS ARE EVEN DESIGNING A FAIL SAFE SWITCH THAT WILL CAUSE THE GENETICALLY ENGINEERED CELLS TO SELF DESTRUCT IF THEY MALFUNCTION CAUSE UNWANTED SIDE EFFECTS OR HAVE SIMPLY FINISHED THEIR JOB THE INVENTION HINGES ON THE WORKINGS OF CELL RECEPTORS SPECIALIZED PROTEINS ON OR NEAR THE CELL'S SURFACE THESE RECEPTORS ARE DESIGNED TO GRAB HOLD AND REACT TO CHEMICAL SIGNALS DRIFTING BY IN THE BLOODSTREAM EACH PROTEIN RECEPTOR REACTS TO ONE PARTICULAR CHEMICAL SIGNAL AND NO OTHER WHEN A RECEPTOR IS TRIPPED BY A PASSING CHEMICAL IT LAUNCHES A TRAIN OF SIGNALS THAT REACH INTO THE NUCLEUS OF THE CELL WHERE THE GENES RESIDE THE SIGNALS TELL THE CELL TO START READING THE QUOTE MESSAGE QUOTE WRITTEN IN A PARTICULAR GENE INSTRUCTIONS TO BEGIN MAKING A CERTAIN PROTEIN FOR INSTANCE A RISING CONCENTRATION OF GLUCOSE IN THE BLOOD TRIPS A RECEPTOR THAT TURNS ON THE INSULIN GENE IN CERTAIN CELLS IN THE PANCREAS GLAND DOCTORS SCHREIBER AND CRABTREE CREATED A SYNTHETIC RECEPTOR DERIVED FROM ONE FOUND IN WHITE BLOOD CELLS CALLED T. CELLS THAT HELPS FIGHT OFF INVASIONS OF FOREIGN TISSUES THE T. CELL RECEPTOR CONSISTS OF SEVERAL IDENTICAL BUT SEPARATE PROTEINS THAT HANG SIDE BY SIDE JUST BELOW THE CELL SURFACE THE RECEPTOR LIES DORMANT UNTIL SOME CHEMICAL PERMEATES THE CELL AND LINKS TWO OR MORE OF THE PROTEINS TOGETHER THIS LINKING TELLS A GENE IN THE T. CELL TO BEGIN MAKING PROTEINS THAT LAUNCH AN ATTACK AGAINST SAY A TRANSPLANTED KIDNEY WHAT INTRIGUED THE TWO SCIENTISTS ABOUT THIS T. CELL RECEPTOR WAS THAT A MOLECULE OF A JAPANESE DRUG F. K. FIVE OH SIX WILL BIND TO ONE OF THE RECEPTOR'S PROTEINS AND PREVENT IT FROM LINKING UP TO A NEIGHBORING PROTEIN THE DRUG THUS BLOCKS THE RECEPTOR FROM TURNING ON ITS GENE WHICH EXPLAINS WHY IT IS SO EFFECTIVE IN PREVENTING THE REJECTION OF TRANSPLANTED ORGANS THE TWO SCIENTISTS FIGURED OUT HOW TO USE F. K. FIVE OH SIX TO ACTIVATE THE RECEPTOR AND TURN ON THE GENE THEY WELDED MOLECULES OF F. K. FIVE OH SIX TO OPPOSITE ENDS OF A LINKER MOLECULE TO CREATE A KIND OF DUMBBELL SHAPED MOLECULE DUBBED F. K. TEN TWELVE DOCTOR SCHREIBER EXPLAINS WHEN F. K. TEN TWELVE SEEPS INTO A CELL WITH THE RECEPTOR ONE END WILL BIND TO ONE RECEPTOR PROTEIN AND THE OTHER END TO A NEIGHBORING PROTEIN THEREBY CREATING THE LINK THAT ACTIVATES THE RECEPTOR AND TURNS ON THE GENE THE SCIENTISTS CAN PACKAGE THE COMPONENTS NEEDED TO MAKE THE RECEPTOR INTO A GENE CASSETTE ALONG WITH A GENE OF INTEREST WHICH CONTROLS THE RELEVANT PROTEIN PRODUCTION THE CASSETTE CAN THEN BE SPLICED INTO WHOLE CELLS SUCH AS T. CELLS WHENEVER THE RESEARCHERS WANT TO TURN ON THE GENE OF INTEREST THEY MERELY ADD A LITTLE F. K. TEN TWELVE TO TURN IT OFF THEY ADD A MODIFIED VERSION OF F. K. FIVE OH SIX THE TRICK SAYS DOCTOR SCHREIBER HAS WORKED IN TEST TUBES NEXT WE'LL TRY TO INTRODUCE THE SYSTEM IN SIMPLE ORGANISMS LIKE THE FRUIT FLY OR A NEMATODE HE SAYS A LITTLE WAY DOWN THE ROAD WE'LL PUT IT INTO MICE FOR THEIR OWN BASIC RESEARCH DOCTORS SCHREIBER AND CRABTREE SAY THEY INTEND TO INSERT A PARTICULAR GENE AND THE SWITCH INTO MICE AND THEN TURN THE GENE ON OR OFF AT ANY STAGE OF A MOUSE'S DEVELOPMENT FROM EMBRYO TO ADULTHOOD TO SEE WHAT THE GENE DOES FOR HUMAN THERAPY ARIAD ENVISIONS TAKING A PATIENT'S OWN T. CELLS AND IN THE TEST TUBE INSERTING THE SYNTHETIC RECEPTOR AND A GENE OF INTEREST INTO THE CELLS THE CELLS ARE RETURNED TO THE PATIENT WHO TAKES A PILL OF F. K. TEN TWELVE OR SOME SIMILAR DRUG WHENEVER HE NEEDS TO TURN THE GENE ON AND A PILL OF F. K. FIVE OH SIX TO TURN IT OFF THE SYNTHETIC RECEPTOR WOULD ALSO GIVE GENE THERAPISTS A FAIL SAFE SWITCH NATURE HAS PROGRAMMED ALL CELLS TO DIE WHENEVER THEIR ROLE IN LIFE IS FINISHED THE RESEARCHERS HOPE TO INSTALL A SECOND SYNTHETIC RECEPTOR IN THE GENE CASSETTE THEN WHEN THE CELLS HAVE COMPLETED THEIR GENE THERAPY OR IF SOMETHING SHOULD GO WRONG A SIMPLE PILL COULD SWITCH ON THE APOPTOSIS SIGNALS AND THE CELLS WOULD COMMIT SUICIDE THE CLINTON ADMINISTRATION IS CONSIDERING SHIPPING PATRIOT AIR DEFENSE MISSILES TO BOLSTER U. S. FORCES IN SOUTH KOREA THE MOVE IS BEING WEIGHED TO OFFSET RECENT MOVEMENTS OF ARTILLERY AND MISSILES BY NORTH KOREA TO AREAS NEAR ITS BORDER WITH THE SOUTH PATRIOT MISSILES WHICH WERE USED TO HELP DEFEAT THE THREAT OF IRAQI SCUD MISSILES IN THE PERSIAN GULF WAR WERE WITHDRAWN EARLIER FROM SOUTH KOREA U. S. FORCES STATIONED NEAR THE NORTH KOREAN BORDER AND SEOUL THE SOUTH KOREAN CAPITAL ARE PARTICULARLY VULNERABLE TO MISSILE ATTACKS SEOUL IS WITHIN TWENTY EIGHT MILES OF THE BORDER WELL WITHIN RANGE OF NORTH KOREA'S ARTILLERY THE RECENT DECISION BY THE JUSTICE DEPARTMENT TO DROP ITS ANTITRUST CASE AGAINST THE IVY LEAGUE COLLEGES AND M. I. T. SHOWS THE POLITICAL CLOUT OF OUR ELITE EDUCATIONAL INSTITUTIONS IT ALSO MEANS THAT THESE COLLEGES WILL BE ABLE TO COLLUDE AGAIN TO RESTRICT FINANCIAL AID AND TO DENY UNDERGRADUATES THE BENEFITS OF MERIT SCHOLARSHIPS FIRST SOME HISTORY ALMOST FORTY YEARS AGO THE EIGHT COLLEGES IN THE IVY GROUP BROWN COLUMBIA CORNELL DARTMOUTH HARVARD PENNSYLVANIA PRINCETON AND YALE TOGETHER WITH M. I. T. FORMED A CARTEL TO LIMIT COMPETITION FOR DESIRABLE STUDENTS SUCH STUDENTS ARE GENERALLY UNDERGRADUATES WHO HAVE EXCEPTIONAL ACADEMIC ARTISTIC OR ATHLETIC TALENT OR WHO ARE FROM HISTORICALLY UNDERREPRESENTED RACIAL AND ETHNIC GROUPS THE MEMBERS OF THE CARTEL AGREED NOT TO AWARD QUOTE MERIT QUOTE SCHOLARSHIPS TO UNDERGRADUATES INSTEAD THEY AGREED TO GIVE FINANCIAL AID THAT IS TO DISCOUNT THE TUITION OF UNDERGRADUATES ONLY ON THE BASIS OF NEED TO ENFORCE THIS AGREEMENT THE IVY COLLEGES AND M. I. T. HELD AN ANNUAL MEETING CALLED OVERLAP AT WHICH THEY DECIDED ON THE DOLLAR AMOUNTS OF FINANCIAL AID THAT THEY PLANNED TO OFFER INDIVIDUAL STUDENTS FOR DECADES THIS CARTEL FUNCTIONED OPENLY AND WITHOUT LEGAL CHALLENGE BUT IN NINETEEN NINETY ONE THE JUSTICE DEPARTMENT BROUGHT AN ANTITRUST ACTION AGAINST THE IVY COLLEGES AND M. I. T. FOR COLLUDING TO FIX TUITION CHARGES THE EIGHT IVY COLLEGES QUICKLY ENTERED INTO A CONSENT DECREE THAT TERMINATED OVERLAP M. I. T. HOWEVER DECIDED TO LITIGATE LAST MONTH APPARENTLY UNDER STRONG POLITICAL PRESSURE THE JUSTICE DEPARTMENT CAPITULATED THE SETTLEMENT BETWEEN JUSTICE AND M. I. T. ALLOWS COLLEGES TO PARTICIPATE IN COOPERATIVE FINANCIAL AID ARRANGEMENTS THE COLLEGES CAN AGREE TO PROHIBIT MERIT SCHOLARSHIPS AND EXCHANGE INFORMATION TO COORDINATE THEIR NEED BASED FINANCIAL AID THE JUSTICE DEPARTMENT IS ALSO AGREEABLE TO AMENDING THE NINETEEN NINETY ONE IVY CONSENT DECREE TO INCLUDE THE TERMS OF THE M. I. T. SETTLEMENT THE SETTLEMENT'S ONLY SUBSTANTIAL RESTRICTION IS THAT THE PARTICIPANTS MUST PRACTICE NEED BLIND ADMISSIONS WHICH MEANS THAT THEY MUST MAKE ADMISSIONS DECISIONS WITHOUT CONSIDERING WHICH APPLICANTS NEED FINANCIAL AID THEY MUST ALSO GIVE EACH ADMITTED APPLICANT ALL THE FINANCIAL AID THAT HE OR SHE NEEDS M. I. T. AND ALL THE IVY COLLEGES EXCEPT BROWN ALREADY CLAIM TO SATISFY THESE CONDITIONS IN DEFENDING THEIR CARTEL M. I. T. AND THE IVY COLLEGES ARGUE THAT THEY ARE ALREADY BUDGETING ABOUT THE MAXIMUM AMOUNT OF MONEY FOR FINANCIAL AID THAT THEY CAN AFFORD HENCE IF COMPETITION WERE TO FORCE THEM TO OFFER MERIT SCHOLARSHIPS THEY WOULD HAVE TO DECREASE FINANCIAL AID TO NEEDY STUDENTS THIS ARGUMENT IS SPECIOUS THE RICHEST IVY COLLEGES HARVARD YALE AND PRINCETON HAVE SUBSTANTIALLY LARGER INCOME FROM ENDOWMENTS AND ANNUAL GIFTS THAN THE OTHER IVY COLLEGES AND M. I. T. BUT THE RICHEST COLLEGES DEVOTE A SMALLER FRACTION OF THEIR GROSS REVENUE TO FINANCIAL AID FOR UNDERGRADUATES THIS ANOMALY SUGGESTS THAT COLLUSION ENABLES THE RICHER PARTICIPANTS TO GIVE LESS FINANCIAL AID THAN THEY WOULD GIVE UNDER COMPETITION IT ALSO SUGGESTS THAT THE RICHEST COLLEGES HAVE NOT BEEN BUDGETING THE MAXIMUM AFFORDABLE AMOUNT TO UNDERGRADUATE FINANCIAL AID THEY COULD INCREASE SIGNIFICANTLY THE AMOUNT OF FINANCIAL AID THAT THEY GIVE TO UNDERGRADUATES SIMPLY BY DEVOTING TO UNDERGRADUATE FINANCIAL AID THE SAME FRACTION OF GROSS REVENUE AS DO SOME OF THE POORER COLLEGES M. I. T. AND THE IVY COLLEGES WANT US TO BELIEVE THAT THEIR COSTS OF PROVIDING AN UNDERGRADUATE EDUCATION CANNOT BE REDUCED IN ORDER TO FREE UP FUNDS FOR ADDITIONAL FINANCIAL AID BUT THE COSTS OF THESE COLLEGES AND OF OTHER NOT FOR PROFIT ENTERPRISES ARE ARTIFICIALLY INFLATED THE NOT FOR PROFIT DESIGNATION ALLOWS COLLEGES TO KEEP THEIR BOOKS IN SUCH A WAY THAT THEY REPORT NO PROFITS BUT THIS BOOKKEEPING CONTRIVANCE DOESN'T MEAN THAT COLLEGES DON'T EARN WHAT AN ECONOMIST WOULD PROPERLY CALL PROFITS RATHER IT MEANS THAT THEY INCLUDE IN WHAT THEY CALL THEIR COSTS SOME AMOUNTS THAT ARE REALLY PROFITS IN FACT PRIVATE COLLEGES FUNCTION SIMILARLY TO PRODUCER COOPERATIVES OR PARTNERSHIPS THE PARTNERS IN THIS CASE THE FACULTY AND ADMINISTRATORS SHARE ANY EXCESS REVENUE OVER TRUE COSTS IN THE FORM OF GENEROUS COMPENSATION AND PERQUISITES ONE HAS TO CONCLUDE THAT THE IVY COLLEGES AND M. I. T. COULD CONTINUE GENEROUS NEED BASED FINANCIAL AID EVEN IF THEY WERE ALSO OFFERING MERIT SCHOLARSHIPS BUT WOULD THEY DO SO NOT NECESSARILY IT IS POSSIBLE THAT THEY WOULD REDUCE NEED BASED FINANCIAL AID IF COMPETITION FOR DESIRABLE STUDENTS INTENSIFIED AND MERIT SCHOLARSHIPS DEPRESSED NET TUITION REVENUE BUT THIS OUTCOME IF IT WERE TO OCCUR WOULD NOT HAVE BEEN FORCED ON THE COLLEGES RATHER IT WOULD RESULT FROM THEIR CHOICE TO REDUCE NEED BASED FINANCIAL AID RATHER THAN TO CUT COSTS WHAT WOULD BE THE SOCIAL CONSEQUENCES OF REPLACING NEED BASED FINANCIAL AID WITH MERIT SCHOLARSHIPS IN DEFENDING ITS SETTLEMENT WITH M. I. T. THE JUSTICE DEPARTMENT STRESSED THE VALUE OF NEED BASED FINANCIAL AID IN ENHANCING EQUAL OPPORTUNITY BUT NEED BASED FINANCIAL AID ALSO HAS THE UNDESIRABLE EFFECT OF REDUCING THE INCENTIVE FOR FAMILIES TO MAKE THEIR OWN PROVISIONS FOR PAYING COLLEGE TUITION THE LARGER A FAMILY'S INCOME AND SAVINGS AND THE FEWER CHILDREN IT HAS THE SMALLER THE AMOUNT OF NEED BASED FINANCIAL AID FOR WHICH IT QUALIFIES IN THIS WAY NEED BASED FINANCIAL AID PENALIZES INDUSTRIOUS AND THRIFTY FAMILIES WHO HAVE WORKED SAVED AND LIMITED FAMILY SIZE IN ORDER TO BE ABLE TO PAY TO SEND THEIR CHILDREN TO COLLEGE IN SHORT NEED BASED FINANCIAL AID ENCOURAGES SENSIBLE FAMILIES TO BE IMPRUDENT ACCORDING TO THIS ANALYSIS IT IS NOT SURPRISING THAT THE SAVINGS OF MOST MIDDLE INCOME FAMILIES ARE INADEQUATE FOR THEM TO PAY TO SEND THEIR CHILDREN TO THE IVY COLLEGES AND M. I. T. OR THAT APPLICANTS FROM MIDDLE INCOME FAMILIES NEED MORE AND MORE FINANCIAL AID RESPONDING TO THE INCENTIVES CREATED BY NEED BASED FINANCIAL AID PERHAPS MIDDLE INCOME FAMILIES HAVE COME TO REGARD SAVING TO SEND CHILDREN TO COLLEGE AS POINTLESS AND FOOLISH MERIT SCHOLARSHIPS WOULD HELP TALENTED APPLICANTS FROM MIDDLE CLASS FAMILIES WHO DO NOT QUALIFY FOR NEED BASED FINANCIAL AID AND WOULD ALSO MEAN MORE GENEROUS FINANCIAL AID FOR TALENTED APPLICANTS FROM POOR FAMILIES WITH THE UNDERGRADUATE FINANCIAL AID BASED ON MERIT FINANCIAL AID WOULD NOT BE A REWARD FOR BEING POOR AS IT OFTEN IS NOW RATHER IT WOULD BE A PRIZE AVAILABLE TO ANY APPLICANT WHO RANKS AT THE TOP OF THE APPLICANT POOL MR. GROSSMAN IS A PROFESSOR OF ECONOMICS AT BROWN UNIVERSITY DESPITE WORRIES ABOUT POLITICAL INSTABILITY IN OTHER DEVELOPING NATIONS INVESTORS SNAPPED UP A YANKEE BOND OFFERING FROM ARGENTINA'S YACIMIENTOS PETROLIFEROS FISCALES S. A. IN FACT INVESTORS HAD A NUMBER OF OFFERINGS FROM FOREIGN ISSUERS TO CHOOSE FROM YESTERDAY INCLUDING A ONE POINT FIVE BILLION SWEDISH KRONA ONE HUNDRED EIGHTY SIX MILLION DOLLARS GLOBAL BOND OFFERING FROM SWEDEN'S NORDIC INVESTMENT BANK AND A ONE HUNDRED FIFTY MILLION AUSTRALIAN DOLLAR ONE HUNDRED FOUR POINT SEVEN MILLION U. S. DOLLARS YANKEE BOND OFFERING FROM NEWS AMERICA HOLDINGS A UNIT OF NEWS CORPORATION GLOBAL BONDS ARE DESIGNED TO BE SOLD AND TRADED IN ALL THE WORLD'S MAJOR MARKETS YANKEE BONDS ARE SECURITIES SOLD BY FOREIGN ISSUERS IN THE U. S. MEANWHILE THE PRICE OF THE BENCHMARK THIRTY YEAR U. S. TREASURY BOND DROPPED MORE THAN ONE HALF POINT TO NINETY EIGHT AND TWENTY TWO THIRTY SECONDS YIELDING SIX POINT THREE FOUR PERCENT COMPARED WITH SIX POINT THREE OH PERCENT ON MONDAY YPF AS THE ARGENTINE OIL COMPANY IS KNOWN SOLD THREE HUNDRED FIFTY MILLION DOLLARS OF TEN YEAR NOTES WITH AN EIGHT PERCENT COUPON AT A PRICE OF NINETY NINE POINT SEVEN SEVEN TO YIELD EIGHT POINT OH THREE THREE PERCENT THE NOTES WERE SOLD THROUGH LEAD MANAGER C. S. FIRST BOSTON INCORPORATED THE NOTES WERE PRICED WITH AN EXTREMELY NARROW YIELD SPREAD OVER COMPARABLE U. S. TREASURYS CONSIDERING THEIR RATING YPF'S DEBT IS RATED SINGLE B. ONE BY MOODY'S INVESTORS SERVICE AND DOUBLE B. MINUS BY STANDARD AND POOR'S CORPORATION THE SAME AS THE REPUBLIC OF ARGENTINA HOWEVER YPF'S OFFERING WAS PRICED AT A NARROWER YIELD THAN A RECENT ARGENTINIAN GOVERNMENT NOTE OFFERING BECAUSE MANY INVESTORS BELIEVE THE COMPANY DESERVES A HIGHER RATING THAN THE COUNTRY SYNDICATE OFFICIALS SAID MOODY'S AND S. AND P. POLICIES STATE THAT A COMPANY CANNOT BE RATED HIGHER THAN THE COUNTRY WHERE IT IS BASED PRECLUDING A HIGHER RATING FOR YPF QUOTE IT'S A STELLAR COMPANY IT WOULD PROBABLY BE A STRONG DOUBLE A CREDIT IF IT WERE RATED IN THE U. S. SAID ANTHONY VAN DAALEN CO PORTFOLIO MANAGER AT WARBURG PINCUS FIXED INCOME FUND WHO BOUGHT INTO THE DEAL THE YPF BONDS WERE PRICED AT A SPREAD OF TWO POINT THREE TWO PERCENTAGE POINTS ABOVE TEN YEAR TREASURYS NOTES ARGENTINA'S EIGHT AND THREE EIGHTHS PERCENT COUPON GLOBAL NOTES MATURING IN TWO THOUSAND THREE WERE YIELDING TWO POINT FOUR TWO PERCENTAGE POINTS ABOVE THAN TEN YEAR TREASURY NOTES YESTERDAY MORE THAN NINETY ACCOUNTS BOUGHT INTO YPF'S BOND OFFERING A SYNDICATE OFFICIAL SAID EVEN ASIAN AND EUROPEAN INVESTORS WHO TYPICALLY PREFER SHORTER TERM SECURITIES BOUGHT INTO THE DEAL ANOTHER SYNDICATE OFFICIAL SAID MORE THAN HALF OF THE DEMAND WAS FROM WHAT WE CALL INVESTMENT GRADE BUYERS EVEN THOUGH THIS WAS NOT INVESTMENT GRADE DEAL SAID RICHARD DUBUSC MANAGING DIRECTOR OF C. S. FIRST BOSTON'S CORPORATE SYNDICATE THE OFFERING ALSO BENEFITED FROM YPF'S WELL KNOWN NAME AND INVESTOR FOLLOWING THERE IS CLEARLY CASH IN THIS NAME ONE DEVELOPING NATION DEBT TRADER SAID WITH A SLIM NEW ISSUE CALENDAR INVESTORS QUICKLY SNAPPED UP THE BONDS AND THE OFFERING WAS REPORTEDLY MORE THAN TWO TIMES OVERSUBCRIBED YESTERDAY MORNING NORDIC INVESTMENT BANK'S FIVE YEAR BONDS WERE PRICED WITH A SIX POINT TWO FIVE PERCENT COUPON AT NINETY NINE POINT FOUR ONE SIX TO YIELD SIX POINT THREE NINE PERCENT RATED TRIPLE A BY MOODY'S AND S. AND P. THE BONDS WERE SOLD THROUGH LEAD MANAGER MERRILL LYNCH AND COMPANY LATE YESTERDAY NEWS AMERICA HOLDINGS' ONE HUNDRED FIFTY MILLION AUSTRALIAN DOLLARS OF TWENTY YEAR BONDS WAS SOLD AT PAR TO YIELD EIGHT POINT SIX TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE OFFERING IS THE LONGEST TERM AUSTRALIAN DOLLAR ISSUE EVER SOLD THE NONCALLABLE ISSUE IS RATED B. A. ONE BY MOODY'S AND TRIPLE B. MINUS BY S. AND P. AND WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY ALTHOUGH THE GOVERNMENT'S AUCTION OF NEW TWO YEAR NOTES DREW HEALTHY BIDDING YESTERDAY IT WAS NOT ENOUGH TO SPARK CONTINUED BUYING AND DISAPPOINTED TRADERS SENT PRICES OF U. S. TREASURY NOTES AND BONDS LOWER AS A RESULT HELPING TO DEPRESS PRICES WERE CONCERNS OVER THE PROSPECTS FOR TODAY'S FIVE YEAR NOTE AUCTION AND DATA SUGGESTING THAT THE COLD WEATHER AND THE SOUTHERN CALIFORNIA EARTHQUAKE MAY NOT HAVE SLOWED RETAIL SALES AS MUCH AS EXPECTED BOND INVESTORS WELCOME NEWS OF SLUGGISH ECONOMY BECAUSE IT MEANS LESS INFLATION INFLATION REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE PRICE OF THE THIRTY YEAR TREASURY BOND DROPPED MORE THAN ONE HALF POINT OR MORE THAN FIVE DOLLARS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE OTHER TREASURY SECURITIES POSTED SMALLER LOSSES THE TEN YEAR NOTE DROPPED ONE QUARTER POINT TO ONE HUNDRED TO YIELD FIVE POINT SEVEN THREE PERCENT COMPARED WITH FIVE POINT SEVEN OH PERCENT ON MONDAY MOST OF YESTERDAY'S ACTIVITY CENTERED ON THE TREASURY'S AUCTION OF SEVENTEEN BILLION DOLLARS IN NEW TWO YEAR NOTES THE TREASURY AWARDED THE NOTES AT A YIELD OF FOUR POINT ONE ONE PERCENT A TOUCH HIGHER THAN SOME HAD PREDICTED BUT STILL WITHIN THE RANGE OF EXPECTATIONS THE DETAILS OF THE AUCTION RESULTS SHOWED FAIRLY GOOD INTEREST MARKETWATCHERS SAID FOR THE TWO YEAR NOTES THE BID TO COVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS TENDERED TO THOSE RECEIVED WAS DESCRIBED AS SOLID AT TWO POINT EIGHT FIVE TO ONE NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT INTEREST FROM OUTSIDE THE WALL STREET DEALER COMMUNITY WERE EIGHT HUNDRED TWENTY TWO MILLION DOLLARS LATE YESTERDAY REFLECTING THE LACK OF STRONG DEMAND AFTER THE AUCTION THE WHEN ISSUED TWO YEAR NOTE YIELDED FOUR POINT ONE TWO PERCENT COMPARED WITH FOUR POINT OH NINE PERCENT BEFORE THE RESULTS WERE RELEASED INVESTORS SOLD NOTES AND BONDS IN RESPONSE TO DATA SHOWING THE ECONOMY MAY HAVE HELD UP BETTER THAN EXPECTED FOLLOWING THE COLD SPELL AND THE EARTHQUAKE THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES AND RYAN INCORPORATED REPORTED THAT CHAIN AND DEPARTMENT STORE SALES FOR THE THREE WEEKS ENDED JANUARY TWENTY SECOND WERE UP ONE POINT THREE PERCENT FROM DECEMBER'S PACE THAT COMPARED WITH A THREE POINT FIVE PERCENT RISE FOR THE FIRST TWO WEEKS AND AS PRICES ERODED IN LATE AFTERNOON TRADING DEALERS BEGAN TO SELL AHEAD OF TODAY'S SCHEDULED TWELVE BILLION DOLLAR FIVE YEAR NOTE AUCTION AFTER THE MARKET'S DISSAPOINTING PERFORMANCE YESTERDAY TRADERS SAID THEY WERE NERVOUS ABOUT THE PROSPECTS FOR THE FIVE YEAR NOTE AUCTION IN WHEN ISSUED TRADING LATE YESTERDAY THE FIVE YEAR YIELDED FIVE POINT OH NINE PERCENT UP FROM FIVE POINT OH SEVEN PERCENT MONDAY ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKET CLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED JANUARY THIRTY FIRST NINETEEN NINETY FOUR AND MATURE JANUARY THIRTY FIRST NINETEEN NINETY SIX MUNICIPAL BOND BUYERS FEASTED ON THE BIG ISSUES FROM SAN ANTONIO AND THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM THERE WASN'T MUCH BUYING IN SECONDARY DEALINGS HOWEVER AND PRICES ENDED UNCHANGED TO ONE QUARTER POINT LOWER THE GOLDMAN SACHS AND COMPANY GROUP THAT PRICED SAN ANTONIO'S SEVEN HUNDRED EIGHTY ONE POINT ONE MILLION DOLLARS ELECTRIC AND GAS SYSTEM REFUNDING BONDS WAS ABLE TO REPRICE THE OFFERING AND LOWER SOME YIELDS ZERO POINT ZERO TWO TO ZERO POINT ZERO FIVE POINT FOLLOWING THE REPRICING YIELDS RANGED FROM THREE POINT FIVE OH PERCENT IN NINETEEN NINETY SEVEN TO FIVE POINT TWO EIGHT PERCENT IN TWO THOUSAND FOURTEEN THE SAN ANTONIO ISSUE INCLUDES NINETY TWO MILLION DOLLARS OF DERIVATIVES THERE IS THIRTY FIVE POINT NINE MILLION DOLLARS OF FLOATING RATE BONDS BASED ON THE LONDON INTERBANK OFFERED RATE THE REMAINING FIFTY SIX POINT ONE MILLION DOLLARS COMPRISES STANDARD FLOATING RATE AND INVERSE FLOATER SECURITIES WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S SIX HUNDRED SEVENTY FOUR POINT THREE MILLION DOLLARS OF REFUNDING BONDS FOR NUCLEAR PROJECT NUMBER TWO ALSO ATTRACTED MUCH INTEREST FOLLOWING A REPRICING AT WHICH SOME YIELDS WERE LOWERED ZERO POINT ZERO FIVE POINT YIELDS RANGE FROM THREE POINT OH OH PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT FIVE OH PERCENT IN TWO THOUSAND NINE AND TWO THOUSAND ELEVEN THE W. P. P. S. S. OFFERING INCLUDES ONE HUNDRED MILLION DOLLARS OF FLOATING RATE AND INVERSE FLOATER DERIVATIVES DUE IN TWO THOUSAND TWELVE SAN ANTONIO'S REFUNDING BONDS HAVE A DOUBLE A ONE RATING FROM MOODY'S INVESTORS SERVICE INCORPORATED A DOUBLE A FROM STANDARD AND POOR'S CORPORATION AND A DOUBLE A PLUS FROM FITCH INVESTORS SERVICE INCORPORATED UNINSURED REFUNDING BONDS SOLD BY W. P. P. S. S. THIS SESSION HAVE DOUBLE A RATINGS FROM MOODY'S S. AND P. AND FITCH SOME MARKET PARTICIPANTS OBSERVED THAT SAN ANTONIO'S LATEST BONDS HAVE YIELDS THAT ARE AS MUCH AS ZERO POINT THREE FIVE POINT LOWER THAN W. P. P. S. S. BONDS WITH THE SAME MATURITIES EVEN THOUGH RATINGS FOR THE SECURITIES ARE QUITE CLOSE BOTH ISSUES FARED WELL HOWEVER MORTGAGE SECURITIES ENDED WITH SLIM PRICE DECLINES BUT PURCHASES OF SECURITIES AS COLLATERAL FOR NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS AND OTHER BUYING LENT SUPPORT TO THE MARKET THE SIX AND ONE HALF PERCENT SECURITIES FOR FEBRUARY DELIVERY FELL FIVE THIRTY SECONDS IN SECONDARY DEALINGS GINNIE MAES ENDED AT NINETY NINE AND THIRTY THIRTY SECONDS FREDDIE MAC GOLDS AT ONE HUNDRED AND ONE THIRTY SECOND AND FANNIE MAES AT NINETY NINE AND TWENTY SEVEN THIRTY SECONDS MEANWHILE DEALERS WERE COLLECTING COLLATERAL FOR NEW REMICS IN THE FIFTEEN AND THIRTY YEAR SECTORS KEEPING A FLOOR UNDER PRICES BANKS WERE BIG BUYERS OF THREE TO FIVE YEAR PLANNED AMORTIZATION REMICS MORE THAN TWO POINT FIVE BILLION DOLLARS OF REMICS WERE ANNOUNCED WITH FIVE NEW DEALS AND THE INCREASE OF AN OFFER OUTSTANDING THE LARGEST WAS A ONE BILLION DOLLAR FEDERAL NATIONAL MORTGAGE ASSOCIATION SERIES NINETEEN NINETY FIVE G. TWO DEAL BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION THIRTY YEAR SEVEN PERCENT SECURITIES AND UNDERWRITTEN BY KIDDER PEABODY AND COMPANY THE MARKET FOR GINNIE MAE SIX PERCENT ADJUSTABLE RATE MORTGAGE SECURITIES MEANWHILE HAS BEEN ROILED IN THE PAST FEW WEEKS BY ONE OR TWO FIRMS THAT REPORTEDLY BOUGHT MOST OF THE BONDS AND BID UP THE PRICE TRADERS DECLINED TO NAME THE BUYERS THE PRACTICE OF BUYING AND HOLDING THE BULK OF A MORTGAGE SECURITY CAUSES DEALERS TO SCRAMBLE FOR BONDS BEFORE THE PRICE ESCALATES THE SECURITIES MOST RECENTLY AFFECTED WERE FOR JANUARY DELIVERY THINK OF VACATION TRAVEL AND AMTRAK PROBABLY DOESN'T COME TO MIND INSTEAD MOST AMERICANS MAY ASSOCIATE THE PASSENGER RAILROAD WITH A SIMPLER TIME WHEN TRAVELING THE COUNTRY BY RAIL SEEMED EXOTIC AND ROMANTIC SO IN A NEW PRINT CAMPAIGN BEGINNING THIS WEEK AMTRAK IS PLAYING ON THAT NOSTALGIA IT IS EMBRACING THE PERSONA OF A KINDLY OLD RELATIVE THAT MANY HAVE FOND MEMORIES OF BUT WANT LITTLE TO DO WITH ANYMORE A SERIES OF SIX DOUBLE PAGE ADS FROM OMNICOM GROUP'S D. D. B. NEEDHAM ASKS SUCH QUESTIONS AS QUOTE HAS THE ART OF CONVERSATION BEEN FOUND ON A TRAIN QUOTE AND QUOTE WOULD CHILDHOOD BE A CHILDHOOD WITHOUT A TRAIN RIDE QUOTE AND QUOTE IF YOU'VE NEVER TAKEN THE TRAIN WHAT EXACTLY HAVE YOU MISSED QUOTE THE OBJECTIVE OF THE ADS IS TO MAKE CONSUMERS CONSIDER AMTRAK AS A SERIOUS OPTION FOR VACATION TRAVEL AMTRAK'S OWN RESEARCH SHOWED THAT AMONG THE THOUSANDS OF INDIVIDUALS INTERVIEWED AMTRAK DECLINES TO PROVIDE THE EXACT NUMBER ONLY ABOUT TWENTY FIVE PERCENT MENTIONED THE TRAIN WHEN LISTING CHOICES FOR TRAVEL INVOLVING MORE THAN ONE HUNDRED MILES AMTRAK'S PRINT CAMPAIGN WHICH WILL APPEAR IN SUCH MAGAZINES AS TIME PEOPLE LIFE LADIES HOME JOURNAL EBONY AND BETTER HOMES AND GARDENS IS VERY DIFFERENT FROM MOST TRAVEL ADVERTISING WHILE THE AGGRESSIVE ADS FOR MANY AIRLINES EMPHASIZE PRICE THE NEW AMTRAK ADS DON'T EVEN MENTION PRICES OR SCHEDULES INSTEAD THEY DESCRIBE SLEEPING CARS THAT FEATURE COTTON SHEETS AND BIG FLUFFY PILLOWS THEY TUG AT MEMORIES RECALLING THE WHISTLE TELLING THE WORLD YOU WERE COMING ONE AD HEADLINED CAN A TRAIN HOLIDAY IMPROVE YOUR LOVE LIFE CLAIMS A TRAIN TRIP WILL SEND YOUR LOVE LIFE INTO ORBIT YOU SWOON OVER SCENERY YOU LEARN FROM A NATIVE AMERICAN GUIDE ABOUT THE LEGEND OF THE LOVELORN MAIDEN OF THE ROCK A TRAIN TRIP IS LIKE ONE LONG FASCINATING DATE YOU WATCH THE MOVIE AND THEN THE STARS AND THEN WELL THAT'S YOUR BUSINESS AMTRAK SAYS IT WILL SPEND THIRTY MILLION DOLLARS ON ADVERTISING DURING ITS CURRENT FISCAL YEAR ENDING SEPTEMBER THIRTIETH THE SAME AMOUNT IT SPENT DURING ITS PAST FISCAL YEAR BUT MORE MONEY WILL BE ALLOCATED TO MAGAZINE ADVERTISING THE NOSTALGIA APPROACH WILL EVENTUALLY BE SEEN IN AMTRAK'S TELEVISION COMMERCIALS AS WELL THE CAMPAIGN BREAKS AT A TIME WHEN CONSUMER CONFIDENCE IN AMTRAK HAS BEEN SOMEWHAT SHAKEN SAYS WILLIAM WITHUHN TRANSPORTATION CURATOR AT THE SMITHSONIAN INSTITUTION IN WASHINGTON MR. WITHUHN'S CANDID ASSESSMENT FOLLOWS A SERIES OF ACCIDENTS INCLUDING ONE LAST SEPTEMBER IN ALABAMA THAT KILLED FORTY THREE PASSENGERS MAKING IT THE WORST IN THE RAILROAD'S TWENTY THREE YEAR HISTORY JUST LAST MONTH SOME SIXTY THREE PASSENGERS WERE INJURED WHEN AN AMTRAK TRAIN DERAILED NEAR KISSIMMEE FLORIDA BUT SAFETY WAS NEVER CONSIDERED TO BE INCLUDED IN THE ADS SAYS JOAN WHEATLEY AMTRAK'S DIRECTOR OF ADVERTISING AND SALES PROMOTION QUOTE TRAIN TRAVEL IS AS SAFE IF NOT SAFER THAN ANY OTHER MODE OF TRANSPORTATION WE DIDN'T WANT TO HANG AN AD CAMPAIGN ON SAFETY ISSUES AMTRAK SAYS IT WILL STILL USE ITS WELLWORN SLOGAN ALL ABOARD AMTRAK ON SOME ADS BUT THE MAIN SLOGAN IS THERE'S SOMETHING ABOUT A TRAIN THAT'S MAGIC DAMIAN O'MALLEY EXECUTIVE VICE PRESIDENT AND DIRECTOR OF ACCOUNT PLANNING AT D. D. B. NEEDHAM SAYS THAT IN THE NEW ADS AMTRAK HAD TO TRUMPET ITSELF AS MORE THAN A MEANS OF TRANSPORTATION WE NEEDED TO FIND REASONS FOR RELEVANCY HE SAYS TRAIN TRAVEL IS UNIQUE IT IS GREAT FOR CARRYING ON A CONVERSATION TO MAINTAIN DIGNITY THAT ONE HAS TROUBLE MAINTAINING WHEN TRAVELING BY BUS PLANE OR CAR AMTRAK'S RIDERSHIP HAS SHOWN LITTLE GROWTH IN THE NINETIES IN FISCAL NINETEEN NINETY THREE AMTRAK CARRIED TWENTY TWO POINT ONE MILLION PASSENGERS UP FOUR PERCENT FROM FISCAL NINETEEN NINETY TWO WHEN IT REPORTED RIDERSHIP OF TWENTY ONE POINT THREE MILLION THAT WAS DOWN THREE PERCENT FROM FISCAL NINETEEN NINETY TWO WHEN IT CARRIED TWENTY TWO MILLION PASSENGERS QUOTE HOPEFULLY AMTRAK WILL GET THE BUDGET IT NEEDS FROM THE PRESIDENT TO KEEP UP ITS MAINTENANCE AND FIX SOME EQUIPMENT QUOTE SAYS MR. WITHUHN THE ADS ARE NICE NOW AMTRAK HAS TO DELIVER WITH COMFORTABLE RIDES MARKETING EXPERTS ARE SPLIT OVER WHETHER THE AMTRAK CAMPAIGN IS EFFECTIVE ADVERTISING CLAY TIMON PRESIDENT AND CHIEF EXECUTIVE OF LANDOR ASSOCIATES A DESIGN AND IDENTITY MANAGEMENT COMPANY BASED IN SAN FRANCISCO SAYS HE LOVES THE ADS CALLING THEM A PERFECT RESPONSE TO THE HECTIC CRASS AND IN YOUR FACE ADVERTISING FROM THE AIRLINES MR. TIMON WHO SAW EACH PRINT AD SAYS HE DOESN'T BELIEVE AMTRAK IS TAKING A BIG RISK BY AVOIDING THE MENTION OF PRICING IN THESE COST CONSCIOUS TIMES BY TAKING A DIFFERENT APPROACH HE SAYS AMTRAK IS GOING TO STAND OUT FROM ALL THE PRICE SHOUTING AMTRAK CAN'T COMPETE ON QUICKNESS SO IT IS TRYING TO COMPETE ON THE QUALITY ASPECTS OF TRAVELING BUT HAL ROSS PRESIDENT OF MAPES AND ROSS A COMMUNICATIONS RESEARCH COMPANY IN PRINCETON N. J. SAYS THAT ALTHOUGH THE ADS ARE QUOTE INTERESTING THERE ARE SOME PROBLEMS QUOTE FOR INSTANCE HE SAYS READERS HAVE TO WADE THROUGH TOO MUCH WRITTEN MATERIAL BEFORE FINDING OUT THE BENEFITS OF TAKING THE TRAIN AMTRAK SHOULD SPELL OUT THE ADVANTAGES MUCH FASTER SAYS MR. ROSS WHO ALSO SAW EACH AD THESE ADS REQUIRE TOO MUCH WORK ON THE PART OF THE CONSUMER AND ASK TOO MUCH OF THEIR PATIENCE THAT IS A VIRTURE THAT IS FINE FOR TRAIN TRAVELING BUT NOT SO MUCH FOR READING AN ADVERTISEMENT PEPSICO'S PEPSI COLA COMPANY IS USING ITS FOUR MINUTES OF SUPER BOWL ADVERTISING TIME SUNDAY TO BREAK NEW ADS FOR PEPSICOLA AND LIPTON ICED TEA STARRING A STANDING ROOM ONLY CREW OF CELEBRITY ENDORSERS MICHAEL RICHARDS KRAMER ON SEINFELD APPEARS IN ONE SPOT ALONG WITH VETERAN PITCHWOMAN CINDY CRAWFORD WHO TURNS INTO RODNEY DANGERFIELD AFTER A SPELL IN A PEPSI DEPRIVATION TANK A SECOND SPOT DEPICTING A WOODSTOCK REVIVAL STARS A DIFFERENT GENRE OF CELEBRITY MEMBERS OF THE OLD ROCK BAND JEFFERSON AIRPLANE AND SINGER JOHN SEBASTIAN MINGLE WITH A CROWD OF HIPPIES TURNED YUPPIES CREATED BY OMNICOM GROUP'S B. B. D. O. THE COMMERCIALS CONTINUE TO END WITH THE COMMAND TO BE YOUNG HAVE FUN DRINK PEPSI QUOTE MARTIAL ARTS ACTOR DAVID CARRADINE PARODIES HIS KUNG FU TELEVISION SERIES IN A LIPTON ICED TEA SPOT CREATED BY W. P. P. GROUP'S J. WALTER THOMPSON PEPSI ALSO IS AIRING PREVIOUSLY SEEN SPOTS FEATURING BASKETBALL PLAYER SHAQUILLE O'NEAL FOR PEPSI AND BO JACKSON FOR LIPTON ICED TEA A SIXTH SPOT FROM PEPSICOLA'S INTERNATIONAL DIVISION ALSO IS SET TO AIR ALTHOUGH PEPSI ISN'T SAYING MUCH ABOUT THAT ONE BEYOND THE FACT THAT IT INVOLVES CHIMPS ACCOUNT AS EXPECTED GRAND METROPOLITAN'S BURGER KING NAMED THREE NEW YORK FINALISTS IN THE CREATIVE REVIEW OF ITS BIG NATIONAL ACCOUNT AMMIRATI AND PURIS INTERPUBLIC GROUP'S LOWE AND PARTNERS SLASH S. M. S. AND EURO R. S. C. G.'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER VYING FOR THE MEDIA PORTION ARE W. P. P. GROUP'S OGILVY AND MATHER DEWITT MEDIA AND THE INCUMBENT ON THE ACCOUNT D'ARCY MASIUS BENTON AND BOWLES WHO'S NEWS PAUL MEIJER CREATIVE DIRECTOR OF YOUNG AND RUBICAM'S AMSTERDAM OFFICE WAS NAMED CREATIVE DIRECTOR OF THE WORLD WIDE AGENCY OVERSEEING NEW TECHNOLOGIES INCLUDING INTERACTIVE ADS AT Y. AND R. OFFICES IN THE NEW POST MR. MEIJER FORTY ONE YEARS OLD WILL BE BASED IN NEW YORK AND WILL REPORT TO TED BELL Y. AND R. VICE CHAIRMAN WITH CONGRESS SET TO RECONVENE THIS WEEK NOW IS PERHAPS A GOOD TIME TO CHECK ON THE SPENDING HABITS OF OUR FEDERAL LEGISLATORS FIRST THE GOOD NEWS IN THE FIRST SESSION OF THE ONE HUNDRED THIRD CONGRESS THERE WAS AN EXPLOSION OF SPENDING REDUCTION LEGISLATION LED BY FRESHMEN AND SECOND TERM MEMBERS BILLS TO CUT SPENDING ARE IN FACT ALMOST THREE TIMES MORE NUMEROUS IN THE ONE HUNDRED THIRD CONGRESS THAN THEY WERE AT THE HALFWAY POINT OF THE ONE HUNDRED SECOND YET CONGRESS IS UNLIKELY TO BALANCE THE BUDGET ANYTIME SOON ON AVERAGE LEGISLATORS ARE SPONSORING MORE NET NEW SPENDING THAN IN THE LAST CONGRESS MEANWHILE MOST OF THEIR PROPOSED SPENDING CUTS WERE IN THE FORM OF ACROSS THE BOARD MEASURES THAT SET SPENDING TARGETS BUT FAILED TO SPECIFY WHICH PROGRAMS TO CUT THIS EVASIVE ACTION SUGGESTS THAT MANY WOULD BE BUDGET CUTTERS HAVE YET TO COME TO GRIPS WITH THE DEVILISH DETAILS OF REINING IN FEDERAL SPENDING SINCE NINETEEN NINETY ONE THE NATIONAL TAXPAYERS UNION HAS KEPT A COMPREHENSIVE RUNNING TALLY OF THE COST OF SPENDING LEGISLATION BEFORE CONGRESS CALLED THE CONGRESSIONAL BUDGET TRACKING SYSTEM BELOW ARE THE QUOTE WINNERS QUOTE FOR THE ONE HUNDRED THIRD CONGRESS SO FAR THE TOTALS FOR INDIVIDUAL MEMBERS WERE DEVELOPED BY CROSS INDEXING EACH MEMBER'S SPONSORSHIP AND CO SPONSORSHIP RECORDS WITH COST ESTIMATES FOR FOUR HUNDRED NINETY TWO SENATE BILLS AND EIGHT HUNDRED NINETY SEVEN HOUSE BILLS INTRODUCED BETWEEN JANUARY FIFTH NINETEEN NINETY THREE WHEN THE ONE HUNDRED THIRD'S FIRST SESSION BEGAN AND NOVEMBER TWENTY SECOND WHEN IT ENDED COST ESTIMATES ARE OBTAINED FROM SPONSORS THE CONGRESSIONAL BUDGET OFFICE AND OTHER SOURCES THE NATIONAL TAXPAYERS UNION OFFERS EACH MEMBER AN OPPORTUNITY TO CORRECT HIS OR HER SPONSORSHIP RECORD BEFORE THE RESULTS ARE PUT INTO FINAL FORM AND YET EACH TIME SPENDING SURVEYS HAVE BEEN PUBLISHED THIS IS THE SEVENTH SURVEY SINCE NINETEEN NINETY ONE THE UNION IS FLOODED WITH DOZENS OF LETTERS AND FAXES FROM MEMBERS OF CONGRESS UNDERSTANDABLY EAGER TO GET THEIR SPENDING TOTALS DOWN IN MANY CASES LAWMAKERS SEEK TO DISSOCIATE THEMSELVES FROM BILLS THAT THEY HAD EARLIER SPONSORED REPRESENTATIVE KWEISI MFUME'S LETTER EXCERPTED NEARBY CAME IN RESPONSE TO OUR MID NOVEMBER SURVEY AND SHOWS HIM ENDING HIS SPONSORSHIP OF A SINGLE PAYER HEALTH BILL H. R. TWELVE HUNDRED AMONG OTHERS REPRESENTATIVE BILL PAXON WANTS TO ADD TO HIS SPONSORSHIPS OF COURSE THE BILLS HE MENTIONS ARE FOR SPENDING REDUCTION MR. HEWITT IS VICE PRESIDENT FOR RESEARCH OF THE NATIONAL TAXPAYERS UNION THE TOP FIFTY SENATORS AND CONGRESSMEN RANKED ACCORDING TO THE TOTAL COST OF THE BILLS THEY HAVE SPONSORED OR CO SPONSORED IN THE ONE HUNDRED THIRD CONGRESS WHICH RECONVENES TODAY TOTALS ARE ROUNDED TO THE NEAREST BILLION TODAY IN LOS ANGELES CALIFORNIA'S OCCUPATIONAL SAFETY AND HEALTH STANDARDS BOARD OPENS HEARINGS TO CONSIDER REQUIRING BY LAW THAT EMPLOYERS IN THE STATE QUOTE ADJUST QUOTE THEIR QUOTE WORK PACE QUOTE THE ADJUSTMENT CAL OSHA HAS IN MIND IS DOWNWARD TO THOSE SURPRISED TO FIND THE NO LONGER SO GOLDEN STATE GIRDING TO REQUIRE ITS REMAINING BUSINESSES TO DO LESS WELCOME TO THE SAFETY AND HEALTH JUGGERNAUT THAT IS ERGONOMICS ERGONOMISTS DEFINE THEIR DISCIPLINE AS THE STUDY OF WORKERS' RELATION TO THEIR ENVIRONMENT ERGONOMIC MEASURES ARE THE FAVORED SOLUTION TO CARPAL TUNNEL SYNDROME AND OTHER CUMULATIVE TRAUMA DISORDERS CTDS PURPORTEDLY CAUSED BY REPETITIVE FORCEFUL MOTIONS AT WORK THE CAL OSHA HEARINGS RESULT FROM THE STATE ASSEMBLY'S REQUIREMENT THAT AN ERGONOMICS RULE BE ADOPTED TO MINIMIZE THE INSTANCES OF INJURY FROM REPETITIVE MOTION A SIMILAR MANDATE IS PENDING IN CONGRESS WHERE LABOR SECRETARY ROBERT REICH HAS TESTIFIED THAT CTDS ARE THE OCCUPATIONAL DISEASES OF THE INFORMATION AGE THE FEDERAL OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION ALREADY HAS PROMISED A DRAFT STANDARD BY FALL AND FOR SEVERAL YEARS NOW IT HAS BEEN PROSECUTING COMPANIES UNDER THE FEDERAL ACT'S QUOTE GENERAL DUTY CLAUSE QUOTE SO FOR INSTANCE FED OSHA HAS CHARGED THAT RISK OF DEATH OR SERIOUS PHYSICAL HARM LURKS IN THE HAND MOTIONS THAT PRODUCE PEPPERIDGE FARM'S DELIGHTFUL MILANO COOKIES ERGONOMICS' APPEAL LIES IN ITS UNQUESTIONABLE PREMISE AND ITS EQUALLY UNQUESTIONABLE AND UNQUESTIONABLY ATTRACTIVE CONCLUSION THE PREMISE HARD WORK IS TIRING AND SOMETIMES UNCOMFORTABLE EVEN PAINFUL THE CONCLUSION WORK LESS AND YOU'LL FEEL BETTER WHY I'VE EXPERIENCED THE VERY THING MYSELF THOUGH USUALLY PACKAGED IN PSEUDO SCIENTIFIC JARGON ERGONOMISTS' REMEDIES REFLECT A SIMILAR ROUGH COMMON SENSE CTDS THE THEORY GOES ARE THE PRODUCT OF REPETITION FORCE AND POSTURE TO CURE THEM REDUCE REPETITIONS ADJUST THE WORK PACE HIRE SEVEN EMPLOYEES TO DO THE WORK OF FIVE GIVE EMPLOYEES FREQUENT REST PERIODS AS FOR FORCE LESSEN IT BY DROPPING THE WEIGHT OF WHAT EMPLOYEES PRESS LIFT AND CARRY REDESIGN THE WORKSTATION TO IMPROVE EMPLOYEES' POSTURE ALL OF THESE MEASURES ARE EITHER EXPRESSED OR IMPLIED IN THE PROPOSED CALIFORNIA STANDARD THEY ARE TO BE TAKEN BY EMPLOYERS TO AN INDETERMINATE EXTENT ON A FINDING OF SUCH CTD SYMPTOMS AS PAIN FROM MOVEMENT THE MEASURES ALREADY ARE BEING DEMANDED BY FEDERAL AND STATE OSHA REGULATORS IN CASES LIKE THAT AGAINST PEPPERIDGE FARM NOR IS THIS THE LIMIT OF ERGONOMISTS' AGENDA FOR THEY HAVE IN STORE FOR EMPLOYEES A STILL GREATER FREEDOM UNEMPLOYMENT OSHA INSPECTORS MAY NOT BE ENGINEERS THEY MAY NOT BE PHYSICIANS BUT THEY CAN SURELY RECOGNIZE THAT IF A GIVEN OPERATION REQUIRED NO WORKERS AT ALL ILLNESS AND INJURY WOULD DISAPPEAR AUTOMATION IS ACCORDINGLY A COMMONLY PROPOSED ERGONOMIC MEASURE THIS PAST FALL AT A JOB SAFETY CONFERENCE IN CHICAGO A MEAT PACKING PLANT MANAGER SWELLED WITH PRIDE AT A FILM OF ONE OF HIS COMPANY'S FULLY AUTOMATED OPERATIONS WITH NARY A WORKER IN SIGHT WE USED TO HAVE HURT BACKS HURT SHOULDERS HE COMMENTED BUT NOT ANYMORE UNION MEMBERS IN THE AUDIENCE WERE WISE TO TAKE NOTE MOST AMBITIOUS OF ALL HOWEVER IS ERGONOMISTS' PROGRAM TO REACH BEYOND PHYSICAL CONDITIONS OF THE WORKPLACE TO ADDRESS THE VERY TERMS OF EMPLOYMENT INCREASINGLY ERGONOMISTS AND THEIR CRITICS ARE FINDING THAT EMPLOYEE REPORTS OF CTDS WHICH ARE DIFFICULT TO VERIFY OBJECTIVELY CORRELATE MORE STRONGLY WITH GENERALIZED JOB DISSATISFACTION THAN WITH A JOB'S PHYSICAL DEMANDS WITH ADMIRABLE PERSISTENCE ERGONOMISTS ARE NOW RECOMMENDING CHANGES TO THE PSYCHO SOCIAL CONDITIONS OF THE WORKPLACE THE RESEARCH ARM OF OSHA HAS RECOMMENDED MANDATORY ERGONOMICS PROGRAMS TO ADDRESS AMONG OTHER THINGS QUOTE OPPORTUNITY FOR ADVANCEMENT QUOTE WORKER QUOTE FEEDBACK QUOTE AND QUOTE MANAGEMENT STYLE AND CLIMATE QUOTE PERHAPS INSTEAD PSYCHO SOCIAL CAUSES OUGHT TO OCCASION SOME LAST MINUTE REFLECTIONS ON THE DOUBTFUL SCIENCE UNDERLYING ERGONOMICS IN THE WORDS OF ERGONOMICS GURU DON CHAFFIN WHAT THE FIELD LACKS IS GOOD EVALUATIONS THAT HOLD UP TO SCIENTIFIC SCRUTINY WHILE NO ONE DOUBTS THAT HARD WORK CAN BECOME TIRING AND UNCOMFORTABLE RESPECTED PHYSICIANS QUESTION FIRST WHETHER CTDS EXIST AS A DIAGNOSABLE CONDITION FALLING WITHIN OSHA'S AUTHORITY TO ADDRESS ILLNESS AND INJURY WHILE DISPUTING THIS ERGONOMISTS ACKNOWLEDGE SECOND THAT AN AILMENT CARRYING ALL THE SYMPTOMS OF A CTD MIGHT HAVE CAUSES OTHER THAN REPETITION AND FORCE AND THEREFORE NOT BE A CTD AT ALL DIAGNOSIS IS HARD IN ANY GIVEN CASE THIRD AND PERHAPS MOST NOTABLE OF ALL ERGONOMISTS READILY CONFESS NOT TO KNOW THE LEVELS AT WHICH REPETITION AND FORCE BECOME HAZARDOUS IN OTHER WORDS WHILE COMMANDING BUSINESS ON PAIN OF CIVIL OR EVEN CRIMINAL PENALTY TO REDUCE REPETITION AND FORCE TO NONHAZARDOUS LEVELS OSHA REGULATORS DO NOT KNOW THEMSELVES WHERE THIS LINE BETWEEN LEGAL AND ILLEGAL CONDUCT LIES SUCH A MANDATE IS PROBABLY UNCONSTITUTIONAL AND IS CERTAINLY STUPID POLICY BEFORE PARADING NAKED FOR HIS COUNTRYMEN THE EMPEROR WHO WORE NO CLOTHES PAID A HEFTY SUM TO CLEVER TAILORS WHO ASSURED HIM THEY HAD WOVEN A FINE GARMENT INDEED OTHER COUNTRIES NOTABLY AUSTRALIA HAVE INVESTED SMALL FORTUNES IN ERGONOMIC REFORM ONLY TO SEE THEIR CTD EPIDEMICS WAX AND WANE REGARDLESS OF THE MEASURES TAKEN AS ERGONOMICS RISES TO THE TOP OF THE NATION'S LABOR AGENDA POLICY MAKERS WOULD DO WELL TO TAKE CAREFUL MEASURE OF THE SCIENCE UNDERLYING IT MR. SCALIA A LAWYER IN WASHINGTON REPRESENTS MANAGEMENT IN OCCUPATIONAL SAFETY AND HEALTH MATTERS JAPAN'S POLITICAL WOES ARE TRASHING TOKYO STOCKS THE NIKKEI STOCK AVERAGE PLUMMETED NINE HUNDRED FIFTY FOUR POINT ONE NINE POINTS OR FOUR POINT NINE PERCENT MONDAY TO CLOSE AT EIGHTEEN THOUSAND THREE HUNDRED FIFTY THREE POINT TWO FOUR IN TRADING TUESDAY THE NIKKEI INDEX ROSE NINETY EIGHT POINT SEVEN ONE POINTS ENDING THE MORNING SESSION AT EIGHTEEN THOUSAND FOUR HUNDRED FIFTY ONE POINT NINE FIVE MONDAY'S VOLUME WAS ESTIMATED AT THREE HUNDRED SIXTY MILLION SHARES DOWN FROM FOUR HUNDRED SIXTY THREE POINT TWO TWO MILLION SHARES FRIDAY LOSERS OUTNUMBERED GAINERS ONE THOUSAND ONE HUNDRED FIVE TO FIFTEEN THE TOKYO STOCK PRICE INDEX OR TOPIX FELL SEVENTY POINT EIGHT FIVE POINTS OR FOUR POINT FIVE PERCENT TO ONE THOUSAND FOUR HUNDRED NINETY NINE POINT OH SIX THE LAST TIME THE NIKKEI HAD SUCH A BIG SINGLE DAY PLUNGE WAS DURING THE AUGUST NINETEEN NINETY ONE COUP IN THE SOVIET UNION BUT THIS TIME THE PROBLEMS ARE LOCAL THE SURPRISE DEFEAT OF PRIME MINISTER MORIHIRO HOSOKAWA'S POLITICAL REFORM PACKAGE HAS THROWN DOMESTIC POLITICS INTO DISARRAY AND LIKELY SLOWS A MUCH NEEDED JAPANESE GOVERNMENT ECONOMIC STIMULUS PROGRAM THE BIGGEST VICTIM MONDAY WAS THE MARKET WHICH HAD BEEN UP ABOUT ELEVEN PERCENT SO FAR THIS YEAR ON THE BELIEF THAT PESSIMISM ABOUT JAPAN WAS OVERBLOWN BUT NEARLY HALF THE YEAR'S GAINS DISAPPEARED MONDAY AND SOME SAID THE DECLINE COULD CONTINUE FOR ANOTHER ONE THOUSAND POINTS IF THE POLITICAL SITUATION DOESN'T STABILIZE QUOTE WE'RE A NATION THAT TAKES A SINGLE DIRECTION QUOTE SAID YUKIO YOSHIDA DEPUTY PRESIDENT OF BANK OF TOKYO ASSET MANAGEMENT LIMITED NOW IT'S PESSIMISTIC HOW INVESTORS ARE COPING WITH THE SUDDEN GYRATIONS OF THE TOKYO MARKET SEEMS TO DEPEND ON THEIR NATIONALITY JAPANESE WERE HEAVY SELLERS WHILE FOREIGN INVESTORS WHO FOR MANY YEARS HAVE BEEN UNDERWEIGHTED IN JAPANESE STOCKS ARE STILL BUYING WHILE FOREIGNERS MAY HAVE BEEN JUST AS SURPRISED AS THE JAPANESE BY THE POLITICAL SETBACKS THEY HAVEN'T GIVEN UP HOPE THAT MORE ECONOMIC SPENDING WILL EVENTUALLY LEAD TO RECOVERY AND TO HEALTHIER CORPORATE EARNINGS INTERNATIONAL INVESTORS WERE MODEST NET BUYERS MONDAY THE FOREIGNERS TEND TO FAVOR JAPANESE HIGH TECHNOLOGY STOCKS AND ELECTRONICS EXPORTERS LIKE SONY CORPORATION AND HITACHI LIMITED WHICH BENEFITED FROM A RECENT WEAKENING OF THE YEN THE FOREIGN ATTITUDE IS THAT THIS IS A HICCUP BUT WE'LL GET THROUGH IT SAID KATHY MATSUI STRATEGIST AT BARCLAYS DE ZOETE WEDD SECURITIES JAPAN LIMITED ON OUR ORDER SHEETS THE FOREIGN BIAS IS TOWARDS BUYING IT'S EASIER FOR FOREIGNERS TO STOMACH THE RIDE IN TOKYO WHILE JAPANESE INVESTORS HAVE LOST BILLIONS IN THEIR MARKET DURING THE PAST FOUR YEARS FOREIGNERS HAVE KEPT RELATIVELY LITTLE MONEY IN JAPAN INTERNATIONAL FUNDS MOST FOREIGN BUYING HAS COME FROM BIG INTERNATIONAL FUNDS WHICH LAST YEAR MADE FORTUNES IN THE U. S. EUROPE AND ASIA'S EMERGING MARKETS MANY INSTITUTIONAL MANAGERS REASON THAT IT'S TIME TO ALLOCATE MORE MONEY TO JAPAN WHICH HASN'T SEEN A SUSTAINED BULL MARKET IN YEARS INTERNATIONAL INVESTORS MADE MONEY EVERYWHERE ELSE SAID EDWIN MERNER DIRECTOR OF SCHRODER INVESTMENT MANAGEMENT JAPAN LIMITED WHERE ELSE CAN THEY GO EXCEPT JAPAN BY DEFAULT IT'S THE ONLY PLACE LEFT QUOTE ONE DANGER HE NOTES IS THAT A LOT OF FOREIGNERS ARE BUYING INDISCRIMINATELY OTHERS SCOFF AT THE WHOLE ASSET ALLOCATION IDEA AT LEAST WHERE JAPAN IS CONCERNED DESPITE A WORLD WIDE BULL MARKET IN BONDS YOU DON'T SEE PEOPLE BUYING RUSSIAN CZARIST BONDS SAID ANDREW MCGRATH STRATEGIST AT CREDIT SUISSE THIS MARKET IS STILL OVERPRICED IF FOREIGNERS STAY MODESTLY BULLISH IT COULD BE A POWERFUL PLUS FOR THE MARKET PARTICULARLY IF JAPANESE SELLERS RESTRAIN THEMSELVES DURING THE NEXT FEW DAYS WHILE THE RULING PARTY SEEKS COMMON GROUND WITH THE OPPOSITION EVEN WITH MONDAY'S PLUNGE THOUGH THE ALLOCATORS ARE SHOWING STRONG RESULTS OVER THE SHORT TERM THE NIKKEI IS STILL UP FIVE POINT THREE PERCENT FOR THE YEAR AND FOURTEEN PERCENT ABOVE NOVEMBER'S LOW THERE'S REASON TO THINK FOREIGN INVESTORS WILL REMAIN BULLISH WE HAVE NEW MONEY COMING IN WE'RE WARY OF OTHER MARKETS AND WE'RE UNDERWEIGHT IN JAPAN SAID MR. MERNER HE THINKS JAPAN HAS SOME GREAT OPPORTUNITIES MOSTLY IN THE SMALLER CAPITALIZATION STOCKS THAT HIS FUND AND OTHERS NOW FAVOR WHILE MR. MERNER AND OTHER FOREIGN MANAGERS EXPECT JAPAN TO RESUME ITS DEPENDABLE WAYS VOTING THROUGH A BIG SPENDING PACKAGE SOON THEY ALSO SPEAK AS VETERANS OF ONE OF THE CENTURY'S GREAT BEAR MARKETS QUOTE AT THE WORST CASE IF THERE'S AN ELECTION WE'RE DELAYED A FEW WEEKS QUOTE SAID PAUL MANSON A MANAGER AT KLEINWORT BENSON INVESTMENT MANAGEMENT WE'VE ALREADY HAD A NUMBER OF YEARS OF DISAPPOINTMENT THIS ISN'T THE END OF THE WORLD H. WAYNE HUIZENGA CHAIRMAN AND CHIEF EXECUTIVE OF BLOCKBUSTER ENTERTAINMENT CORPORATION SAID HE PLANS TO BUY THE REST OF THE MIAMI DOLPHINS FOOTBALL TEAM FOR AN UNDISCLOSED SUM MR. HUIZENGA CURRENTLY OWNS FIFTEEN PERCENT OF THE DOLPHINS THE REMAINDER IS OWNED BY THE HEIRS OF DOLPHINS FOUNDER JOE ROBBIE WHO HAVE BEEN TRYING TO SELL THE TEAM TO PAY ESTATE TAXES PEOPLE CLOSE TO THE NATIONAL FOOTBALL LEAGUE CITING THE RECENT SALE OF THE NEW ENGLAND PATRIOTS FOR ABOUT ONE HUNDRED SIXTY MILLION DOLLARS ESTIMATE THE MIAMI TEAM IS WORTH AT LEAST ONE HUNDRED FIFTY MILLION DOLLARS THE DOLPHINS EXPECT THE DEAL TO CLOSE BY SPRING HOWEVER THE SALE MUST BE APPROVED BY THE NATIONAL FOOTBALL LEAGUE WHICH CURRENTLY PROHIBITS TEAM OWNERS FROM OWNING OTHER SPORTS FRANCHISES MR. HUIZENGA OWNS CONTROLLING INTERESTS IN BOTH THE FLORIDA MARLINS BASEBALL TEAM AND THE FLORIDA PANTHERS HOCKEY TEAM MR. HUIZENGA COULD RECEIVE A WAIVER FROM THE N. F. L. ON ITS CROSS OWNERSHIP RULE OR HE COULD BE FORCED TO SELL HIS STAKES IN THE BASEBALL AND HOCKEY TEAMS TO COMPLETE THE DOLPHINS ACQUISITION BLOCKBUSTER ALREADY HAS OPTIONS TO BUY HALF INTERESTS IN BOTH OF THE MARLINS AND PANTHERS EARLIER THIS MONTH BLOCKBUSTER ANNOUNCED PLANS TO MERGE WITH VIACOM INCORPORATED A CABLE TELEVISION PROGRAMMER MR. HUIZENGA DIDN'T RETURN PHONE CALLS SEEKING COMMENT SOME ANALYSTS PREDICTED THAT MR. HUIZENGA WOULD TRY TO HOLD ON TO HIS INTERESTS IN ALL THREE TEAMS QUOTE I THINK MR. HUIZENGA'S CONFIDENT HE CAN GET A WAIVER QUOTE SAID CRAIG BIBB A PAINEWEBBER INCORPORATED ANALYST WHO HAS FOLLOWED BLOCKBUSTER AND MR. HUIZENGA FOR YEARS I THINK HE WANTS ALL THREE TEAMS AND HE WOULD BUY THE MIAMI HEAT BASKETBALL TEAM IF HE COULD THE N. F. L. COULD VOTE AS EARLY AS MARCH ON WHETHER TO PERMIT MR. HUIZENGA TO COMPLETE THE DOPLHINS BUYOUT AND RETAIN HIS INTERESTS IN THE OTHER SPORTS FRANCHISES MR. HUIZENGA MIGHT DIVERT MORE OF HIS ATTENTION TO HIS GROWING SPORTS EMPIRE IF HE TAKES A LESS ACTIVE ROLE IN THE PROPOSED VIACOM BLOCKBUSTER INCORPORATED MR. BIBB SAID MR. HUIZENGA WILL BE VICE CHAIRMAN OF THE COMBINED ENTITY HE WILL BE LESS ACTIVE IN VIACOM BLOCKBUSTER IF THAT COMPANY DOES NOT WIN THE BIDDING WAR FOR PARAMOUNT COMMUNICATIONS INCORPORATED HE HAS SAID BUT IF VIACOM DOES WIN PARAMOUNT MR. HUIZENGA HAS SAID HE WILL ASSUME A MORE ACTIVE ROLE IN THE COMBINED COMPANIES IN EITHER CASE ACCORDING TO ONE PERSON FAMILIAR WITH MR. HUIZENGA'S INTERESTS HE MIGHT SELL OR OTHERWISE COMBINE THE SPORTS TEAMS WITH THE ENTERTAINMENT COMPANIES BLOCKBUSTER HAS CONSIDERED ACQUIRING ALL OR PART OF MR. HUIZENGA'S SPORTS INTERESTS IN THE PAST THE PERSON SAID IN ADDITION TO ITS MOVIE STUDIO AND PUBLISHING OPERATIONS PARAMOUNT OWNS THE NEW YORK KNICKS BASKETBALL TEAM AND THE NEW YORK RANGERS HOCKEY TEAM ALTHOUGH COMBINING MR. HUIZENGA'S SPORTS TEAMS WITH THE ENTERTAINMENT COMPANIES COULD FORCE A DIVESTITURE OF ONE OR THE OTHER HOCKEY TEAM IT COULD MAKE SENSE SPORTS TEAMS HAVE HISTORICALLY BEEN STRONG SOURCES OF PROGRAMMING FOR CABLE T. V. NETWORKS SUCH AS TURNER BROADCASTING SYSTEM INCORPORATED WHICH OWNS THE ATLANTA BRAVES BASEBALL TEAM AND MOST OF THE ATLANTA HAWKS BASKETBALL TEAM AND COULD BE VALUABLE PROGRAMMING ASSETS TO VIACOM BLOCKBUSTER MOODY'S INVESTORS SERVICE INCORPORATED CITING WHAT IT CALLED THE QUOTE EXPECTATION OF LOWER PROFIT MARGINS IN THE FUTURE QUOTE FOR ELI LILLY AND COMPANY LOWERED ITS RATINGS ON THE PHARMACEUTICAL COMPANY'S NINE HUNDRED MILLION DOLLARS OF LONG TERM DEBT THE RATING CONCERN HAD PUT THE INDIANAPOLIS BASED COMPANY'S DEBT UNDER REVIEW LAST JUNE JAMES M. CORNELIUS LILLY'S CHIEF FINANCIAL OFFICER AND VICE PRESIDENT FINANCE SAID THROUGH A SPOKESMAN THAT THE MOVE WILL HAVE NO MATERIAL ADVERSE EFFECT ON THE COMPANY'S FINANCIAL POSITION MOODY'S LOWERED TO DOUBLE A ONE FROM TRIPLE A THE NOTES MEDIUM TERM NOTES EURONOTES AND INDUSTRIAL REVENUE BONDS ISSUED BY PARENT ELI LILLY SIMILARLY MARKED DOWN WERE GUARANTEED EUROBONDS ISSUED BY ELI LILLY OVERSEAS FINANCE N. V. AND GUARANTEED AMORTIZING DEBENTURES ISSUED BY THE LILLY SAVINGS PLAN MASTER TRUST C. THE COMPANY'S PRIME ONE RATED COMMERCIAL PAPER WASN'T UNDER REVIEW MOODY'S SAID IT EXPECTS LILLY'S PROFIT MARGINS TO NARROW PARTLY FROM THE LOSS OF PATENT PROTECTION ON CERTAIN PROFITABLE DRUGS SUCH AS ITS CECLOR ANTIBIOTIC AS WELL AS A DEARTH OF MEANINGFUL NEW PRODUCTS FOR THE INTERMEDIATE TERM IN ADDITION LILLY'S WEAKER FUNDAMENTALS WILL BE EXACERBATED MOODY'S SAID BY THE RISING CONCENTRATION OF NEGOTIATING POWER AMONG ITS MAJOR CUSTOMERS IN HEALTH CARE SERVICES MOODY'S SAID THE BROAD SCALE CORPORATE RESTRUCTURING UNDERTAKEN BY LILLY SHOULD MAKE IT A MORE EFFICIENT ORGANIZATION BUT WILL UNLIKELY BE SUFFICIENT TO PREVENT AN EROSION IN OPERATING PROFIT MARGINS IN THE NEXT FEW YEARS IT POINTED OUT THAT THE COMPANY'S BALANCE SHEET IS EXPECTED TO REMAIN VERY STRONG AND THAT LILLY'S PLANNED DIVESTITURE OF ITS MEDICAL DEVICE AND DIAGNOSTICS BUSINESS WILL ENABLE MANAGEMENT TO CONCENTRATE ITS ATTENTION TO RESTORING THE FORWARD MOMENTUM OF ITS MAINSTAY PHARMACEUTICAL BUSINESS AND THAT CERTAIN DEVELOPMENT STAGE DRUGS HOLD THE POTENTIAL FOR BECOMING BIG SELLERS REYNOLDS METALS COMPANY FEELING THE EFFECTS OF A WORLD WIDE ALUMINUM GLUT POSTED A WIDER FOURTH QUARTER LOSS LARGELY BECAUSE OF CHARGES TO COVER THE COSTS OF PREVIOUSLY ANNOUNCED RESTRUCTURING ACTIONS THE COMPANY HAD A LOSS OF TWO HUNDRED THIRTY EIGHT POINT SIX MILLION DOLLARS OR THREE DOLLARS AND NINETY EIGHT CENTS A SHARE COMPARED WITH A YEAR AGO LOSS OF ONE HUNDRED FIFTY TWO POINT ONE MILLION DOLLARS OR TWO DOLLARS AND FIFTY FIVE CENTS A SHARE THE LATEST PERIOD INCLUDES RESTRUCTURING CHARGES OF TWO HUNDRED NINETEEN POINT FIVE MILLION DOLLARS OR THREE DOLLARS AND SIXTY SEVEN CENTS A SHARE THE YEAR EARLIER PERIOD INCLUDES CHARGES OF ONE HUNDRED FIFTY FIVE MILLION DOLLARS OR TWO DOLLARS AND SIXTY CENTS A SHARE FOR ENVIRONMENTAL AND RESTRUCTURING COSTS REVENUE FOR THE QUARTER WHICH ENDED DECEMBER THIRTY FIRST AS WELL AS THE YEAR AGO QUARTER WERE ONE POINT THREE FIVE BILLION DOLLARS THE RESULTS WERE SLIGHTLY BETTER THAN SOME ANALYSTS HAD EXPECTED THEY WERE RELEASED A DAY AFTER ALUMINUM PRODUCING NATIONS ENDED TALKS IN BRUSSELS WITH A PROPOSAL BUT STILL NO AGREEMENT TO CUT PRODUCTION IN TRADING ON THE NEW YORK STOCK EXCHANGE REYNOLDS METALS STOCK CLOSED AT FIFTY DOLLARS AND TWENTY FIVE CENTS A SHARE UP TWO POINT THREE SEVEN FIVE DOLLARS OR FIVE PERCENT IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE FOR THE YEAR REYNOLDS POSTED A LOSS OF THREE HUNDRED TWENTY TWO POINT ONE MILLION DOLLARS OR FIVE DOLLARS AND THIRTY EIGHT CENTS A SHARE INCLUDING CHARGES OF EIGHT MILLION DOLLARS OR THIRTEEN CENTS A SHARE TAKEN IN THE THIRD QUARTER TO COVER THE COSTS OF A TEMPORARY CURTAILMENT OF PRIMARY CAPACITY AND THE TWO HUNDRED NINETEEN POINT FIVE MILLION DOLLARS OR THREE DOLLARS AND SIXTY SEVEN CENTS A SHARE CHARGE TAKEN IN THE FOURTH QUARTER THAT COMPARES WITH A YEAR AGO LOSS OF SEVEN HUNDRED FORTY EIGHT POINT EIGHT MILLION DOLLARS OR TWELVE DOLLARS AND FIFTY SIX CENTS A SHARE AFTER CHARGES OF SEVEN HUNDRED NINETY THREE POINT FOUR MILLION DOLLARS OR THIRTEEN DOLLARS AND THIRTY ONE CENTS A SHARE PRINCIPALLY FOR THE EFFECTS OF ADOPTING NEW ACCOUNTING STANDARDS REVENUE FOR NINETEEN NINETY THREE TOTALED FIVE POINT TWO NINE BILLION DOLLARS DOWN SIX POINT FOUR PERCENT FROM FIVE POINT SIX SIX BILLION DOLLARS A YEAR AGO RICHARD G. HOLDER CHAIRMAN SAID THE RESULTS QUOTE REFLECT A CONTINUATION OF ONE OF THE MOST DIFFICULT PERIODS IN THE HISTORY OF THE ALUMINUM INDUSTRY QUOTE HE SAID THAT DESPITE WEAKNESS IN SEVERAL MAJOR GLOBAL ECONOMIES WESTERN WORLD DEMAND FOR ALUMINUM CONTINUED TO GROW AND REYNOLDS SHIPMENTS ONCE AGAIN SHOWED YEAR TO YEAR IMPROVEMENT THE PROBLEM IS THE SEVERITY OF THE WORLD ALUMINUM SUPPLY DEMAND IMBALANCE WHICH ESCALATED IN NINETEEN NINETY THREE JUNE M. MORRIS FOUNDER AND CHIEF EXECUTIVE OFFICER OF MORRIS AIR WAS ELECTED A DIRECTOR OF THIS AIRLINE WHICH COMPLETED THE ACQUISITION OF MORRIS AIR THIS MONTH THE ELECTION OF MRS. MORRIS INCREASES THE BOARD TO EIGHT MEMBERS COMPAQ COMPUTER CORPORATION SAID IT IS RETHINKING THE DESIGN OF ITS COMING HAND HELD PERSONAL COMPUTER FOLLOWING BLISTERING CRITICISM OF A SIMILAR MACHINE FROM APPLE COMPUTER INCORPORATED AS A RESULT COMPAQ SAID ITS SO CALLED MOBILE COMPANION DEVICE INITIALLY EXPECTED OUT DURING THIS YEAR'S FIRST HALF WILL BE DELAYED UNTIL THE FALL COMPAQ'S MACHINE LIKE THE APPLE NEWTON MESSAGEPAD AGAINST WHICH IT WILL COMPETE WAS EXPECTED TO USE A SPECIAL PEN AND THE USER'S HANDWRITING INSTEAD OF A KEYBOARD FOR ITS BASIC COMMANDS BUT COMPAQ OFFICIALS SAY THE HANDWRITING RECOGNITION CAPABILITIES OF THE NEWTON HAVE BEEN SO WIDELY RIDICULED THAT THEY HAVE BEGUN TO QUESTION WHETHER A PEN BASED MACHINE CAN STILL SUCCEED LORIE STRONG A COMPAQ VICE PRESIDENT SPEARHEADING THE HAND HELD EFFORT AT THE COMPUTER GIANT SAID THE COMPANY'S NEW MACHINE MOST LIKELY WILL INCLUDE A KEYBOARD OPTION AND WON'T REQUIRE HANDWRITTEN COMMANDS TO OPERATE QUOTE WE'RE REASONABLY CONVINCED THAT WE OUGHT TO DO A PRODUCT WHERE HANDWRITING RECOGNITION IS NOT REQUIRED QUOTE MS. STRONG SAID IT SEEMS TO REMAIN UNACCEPTABLE TO USERS ANALYSTS PRAISED THE NEWS OF COMPAQ'S SHIFT SAYING THE WOES OF THE NEWTON HAVE TEMPORARILY SOURED THE MARKET ON PENBASED P. C.S THE APPLE MACHINE A PET PROJECT OF FORMER COMPANY CHAIRMAN JOHN SCULLEY HAS BEEN WIDELY PANNED EVEN BY THE NATIONAL COMIC STRIP DOONESBURY WHICH MOCKED THE NEWTON'S HANDWRITING RECOGNITION ERRORS THERE'S BEEN AN INCREDIBLE BACKLASH SAID JEFFREY HENNING AN ANALYST AT B. I. S. STRATEGIC DECISIONS INCORPORATED IN NORWELL MASSACHUSETTS NOW YOU HAVE TO UNDERSELL THE HANDWRITING PART KIMBALL BROWN AN ANALYST AT DATAQUEST INCORPORATED IN SAN JOSE CALIFORNIA SAID COMPAQ IS ABSOLUTELY ON THE RIGHT TRACK IN INCLUDING A KEYBOARD OPTION ON ITS NEW MACHINE QUOTE IF YOU'RE GOING TO INCLUDE HANDWRITING QUOTE HE ADVISES QUOTE DOWNPLAY IT TO DEATH QUOTE AT APPLE A SPOKESWOMAN DECLINED TO TALK ABOUT COMPAQ'S PLANS BUT SAID HER COMPANY HAS ACKNOWLEDGED THAT THE NEWTON ISN'T FLAWLESS NO HANDWRITING RECOGNITION TECHNOLOGY IS PERFECT SHE SAID BUT THIS IS STILL THE BEST THAT EXISTS IN THE INDUSTRY MS. STRONG NOTED THAT THE DIFFERENCES BETWEEN THE NEWTON AND COMPAQ'S DEVICE GO BEYOND SIMPLY THE HANDWRITING FUNCTION SHE SAID COMPAQ PLANS TO PITCH ITS MOBILE COMPANION AS AN EXTENSION OF THE DESKTOP P. C. FOR BUSINESS USERS THE NOTION IS THAT PEOPLE OUGHT TO BE ABLE TO USE THE MOBILE MACHINE TO DO MANY OF THE SAME THINGS THEY DO AT THEIR DESKS INCLUDING RUNNING PROGRAMS BASED ON MICROSOFT CORPORATION'S WINDOWS SOFTWARE THE NEWTON BY CONTRAST HAS BEEN MARKETED AS A PERSONAL COMMUNICATIONS DEVICE SEPARATE FROM THE DESKTOP IT'S A DIFFERENT APPROACH THAN THE NEWTON MS. STRONG SAID WE FELT WE NEEDED TO DISTANCE OURSELVES COMPAQ'S MACHINE WILL RUN ON A MICROSOFT PLATFORM CALLED WINPAD WHICH THE SOFTWARE GIANT IS HOPING WILL BECOME THE NEXT STANDARD OPERATING SYSTEM FOR MOBILE COMPUTING SWITZERLAND'S INDEX OF PRODUCER AND IMPORT PRICES WAS UNCHANGED IN DECEMBER FROM NOVEMBER BUT FELL ZERO POINT TWO PERCENT FROM THE YEAR EARLIER THE GOVERNMENT STATISTICS OFFICE SAID IN THE ENTIRE YEAR THE INDEX AVERAGED AN INCREASE OF ZERO POINT TWO PERCENT COMPARED WITH AN AVERAGE GAIN OF ZERO POINT ONE PERCENT IN NINETEEN NINETY TWO AND ZERO POINT FOUR PERCENT IN NINETEEN NINETY ONE APPLE COMPUTER INCORPORATED SAID IT HAS SOLD ABOUT EIGHTY THOUSAND OF ITS HAND HELD NEWTON MESSAGEPADS A NUMBER THAT ANALYSTS SAY CONFIRMS THE PRODUCT HAS FLOUNDERED AFTER A BIG LAUNCH LAST AUGUST FOR MESSAGEPAD TO HAVE BEEN A BIG HIT ANALYSTS SAID IT SHOULD HAVE SOLD QUOTE IN THE HUNDREDS OF THOUSANDS QUOTE BY NOW BUT AT AN INDUSTRY CONFERENCE GASTON BASTIAENS AN APPLE VICE PRESIDENT AND GENERAL MANAGER SAID THE COMPANY HAD SOLD ABOUT EIGHTY THOUSAND THROUGH EARLY THIS MONTH ALTHOUGH THE CUPERTINO CALIFORNIA COMPANY DID NOT GIVE A BREAKDOWN ON SALES THE EIGHTY THOUSAND NUMBER WOULD INDICATE A SHARP FALLOFF FROM THE FIFTY THOUSAND SALES IT PREVIOUSLY HAD ANNOUNCED AS OF MID SEPTEMBER TO ABOUT SEVEN THOUSAND FIVE HUNDRED PER MONTH SINCE THEN IT DROPPED WITH A THUD ON THE MARKET SAID JOHN J. GIRTON VICE PRESIDENT OF RESEARCH FOR VAN KASPER AND COMPANY WHILE APPLE OFFICIALS SAID THEY WERE NOT DISAPPOINTED BECAUSE SALES OF NEW PRODUCTS TYPICALLY DECLINE AFTER A STRONG START MESSAGEPAD'S PLUNGE RAISES FRESH CONCERNS ABOUT HOW LONG IT WILL TAKE FOR THIS NEW CLASS OF COMPUTERS WHICH APPLE CALLS PERSONAL DIGITAL ASSISTANTS TO TAKE OFF THE MESSAGEPAD SOLD STRONGLY AT FIRST MOSTLY TO ADOPTERS OF EARLY TECHNOLOGY BUT USER COMPLAINTS OVER SUCH THINGS AS ITS LIMITED ABILITY TO RECOGNIZE HANDWRITING AS WELL AS ITS RELATIVELY HIGH PRICE HAVE CHOKED OFF SALES MESSAGEPAD IS THE FIRST PRODUCT BASED ON APPLE'S NEWTON TECHNOLOGY FOR MOBILE COMMUNICATIONS WHICH THE COMPANY WANTS TO LICENSE WIDELY TO BUILD A RELIABLE REVENUE STREAM AS A MEASURE IN PART TO COUNTERACT DECLINING PROFIT MARGINS IN ITS FLAGSHIP LINE OF MACINTOSH PERSONAL COMPUTERS THE TECHNOLOGY HOLDS GREAT PROMISE AND IN FACT HAS DRAWN SOME TWO THOUSAND DEVELOPERS OF SOFTWARE PROGRAMS TO CONSIDER CREATING VARIOUS APPLICATIONS FOR IT BUT THE MESSAGEPAD WAS INTRODUCED WITH ONLY A FEW FUNCTIONS AND STILL DOESN'T POSSESS FEATURES LIKE ACCESS TO ELECTRONIC MAIL THAT ANALYSTS SAY ARE ESSENTIAL TO MASS SALES THE MESSAGEPAD'S PRICE OF ABOUT ONE THOUSAND DOLLARS FULLY CONFIGURED ALSO ALL BUT KILLS ANY APPEAL THE PRODUCT WOULD HAVE TO THE MASS CONSUMER MARKET WHERE ANALYSTS SAY A PRICE OF UNDER FIVE HUNDRED DOLLARS IS MORE IN LINE TO BE SURE THOUGH MESSAGEPAD IS ONLY THE FIRST GENERATION OF ITS KIND AND ALREADY APPLE IS WORKING ON AN UPDATED REPLACEMENT THAT IS EXPECTED TO BE INTRODUCED LATER THIS YEAR TO TRY TO BOLSTER THE CURRENT PRODUCT'S MARKETABILITY APPLE HAS RECENTLY ADDED A NUMBER OF NEW NEWTON APPLICATIONS INCLUDING A COMPUTERIZED TRAVEL GUIDE A PAGING CARD AND FORMS TO FILL OUT HEALTH CARE APPLICATIONS WHILE TRAVELING IN ALL MESSAGEPAD HAS GAINED ABOUT FORTY APPLICATIONS AND SOON WILL ALSO BE OUTFITTED WITH ELECTRONIC MAIL WE'RE SORT OF IN THE EARLY PHASE OF NEWTON BUT THAT DOESN'T MEAN IT'S ALL OVER WITH NEWTON MR. GIRTON SAID IT'S JUST GETTING STARTED BRUCE LUPATKIN DIRECTOR OF TECHNOLOGY RESEARCH AT SECURITIES FIRM HAMBRECHT AND QUIST SAID THE NEXT GENERATION MESSAGEPAD SHOULD SELL MUCH BETTER THAN THIS ONE BOLSTERING THAT PRODUCT'S PROSPECTS INDEED WAS YESTERDAY'S DISCLOSURE BY JAPANESE ELECTRONICS COMPANY TOSHIBA CORPORATION THAT IT IS CONSIDERING A TIE UP WITH APPLE TO DEVELOP NEXT GENERATION PERSONAL DIGITAL ASSISTANTS BASED ON THE NEWTON TECHNOLOGY TOSHIBA LICENSED THE NEWTON OPERATING SYSTEM LATE LAST YEAR A TOSHIBA SPOKESMAN SAID THOUGH HE DECLINED TO SAY WHEN COMPANY OFFICIALS MIGHT REACH A DECISION ON THE PROPOSED LINK IF IT DECIDES TO PROCEED TOSHIBA WOULD BECOME THE SECOND JAPANESE COMPANY TO MANUFACTURE SUCH MACHINES BASED ON APPLE'S TECHNOLOGY BESIDES APPLE THE MESSAGEPAD IS ALSO MANUFACTURED BY SHARP CORPORATION WHICH HAS INTRODUCED ITS OWN VERSION OF THE MESSAGEPAD IN THE U. S. AND JAPAN BY HAVING BOTH SHARP AND TOSHIBA MANUFACTURING THE PRODUCT ANALYSTS SAY THE COMPETITION WOULD HELP FORCE MESSAGEPAD'S PRICES DOWN INTO THE RANGE OF THE CONSUMER MARKET ABORTION RIGHTS FORCES WON AN IMPORTANT PROCEDURAL VICTORY AS THE SUPREME COURT SAID THEY MAY USE THE FEDERAL RACKETEERING LAW AS A WEAPON AGAINST PROTESTERS WHO TRY TO SHUT DOWN ABORTION CLINICS YESTERDAY'S UNANIMOUS RULING WILL ALLOW THE NATIONAL ORGANIZATION FOR WOMEN TO GO FORWARD WITH A CIVIL LAWSUIT ALLEGING THAT OPERATION RESCUE AND OTHER ANTI ABORTION GROUPS ENGAGED IN A NATIONWIDE CONSPIRACY TO USE HARASSMENT AND VIOLENCE TO FORCE CLINICS TO CLOSE THE HIGH COURT'S DECISION COULD IMPERIL MILITANT ANTI ABORTION ORGANIZATIONS BECAUSE THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW KNOWN AS RICO ALLOWS PLAINTIFFS TO SEEK DAMAGES EQUAL TO TRIPLE THEIR ACTUAL HARM BUT THE JUSTICES EMPHASIZED THAT THEY WEREN'T RULING ON THE MERITS OF THE NOW SUIT WHICH NOW WILL GO BACK TO A U. S. TRIAL COURT IN CHICAGO FOR FURTHER PROCEEDINGS ABORTION RIGHTS LAWYERS SAID THAT AS A RESULT OF THE HIGH COURT'S DECISION THEY WILL CONSIDER ADDING OR BEEFING UP RICO ALLEGATIONS IN DOZENS OF OTHER PENDING SUITS FILED ON BEHALF OF TARGETED CLINICS RANDALL TERRY FOUNDER OF OPERATION RESCUE CALLED THE RULING QUOTE A VULGAR BETRAYAL OF OVER TWO HUNDRED YEARS OF TOLERANCE TOWARD PROTEST AND CIVIL DISOBEDIENCE QUOTE THE DECISION TURNED ON A RELATIVELY NARROW TECHNICAL QUESTION MUST A PLAINTIFF USING RICO PROVE THAT A DEFENDANT'S BAD DEEDS HAD AN ECONOMIC MOTIVE THE COURT'S ANSWER WAS NO RICO PROHIBITS CONDUCTING AN ENTERPRISE IN A PATTERN OF RACKETEERING ACTIVITY THE PATTERN CAN BE SHOWN BY PROVING TWO OR MORE OF A LONG LIST OF UNDERLYING OFFENSES SUCH AS EXTORTION WRITING FOR THE COURT CHIEF JUSTICE WILLIAM REHNQUIST STRESSED THAT THE RELEVANT SECTIONS OF THE RACKETEERING LAW NEITHER STATE OR IMPLY THE NEED FOR AN ECONOMIC MOTIVE THE COURT'S CONCLUSION WASN'T SURPRISING BECAUSE THE JUSTICES HAVE RESISTED MOST INVITATIONS TO NARROW THE SCOPE OF THE BROADLY WORDED RICO STATUTE SOME LOWER FEDERAL COURTS INCLUDING THE TWO THAT HAD CONSIDERED THE NOW SUIT IMPROPERLY IMPOSED THE ECONOMIC MOTIVE REQUIREMENT THE CHIEF JUSTICE SAID THE CLINTON ADMINISTRATION HAD URGED THE HIGH COURT TO REJECT THE REQUIREMENT IN PART BECAUSE IT WOULD MAKE IT MORE DIFFICULT FOR PROSECUTORS TO BRING CASES UNDER RICO'S CRIMINAL PROVISIONS AGAINST TERRORISTS WHO AREN'T MOTIVATED PRIMARILY BY PROFITS THE RULING ON RICO COMES AT A TIME OF ACTIVITY ON A NUMBER OF FRONTS IN THE CLASH BETWEEN PROTESTERS' RIGHTS TO OPPOSE ABORTION AND THE RIGHTS OF WOMEN AND THEIR DOCTORS TO CARRY OUT THE PROCEDURE JUST LAST FRIDAY FOR EXAMPLE THE SUPREME COURT AGREED TO HEAR A SEPARATE CASE INVOLVING HOW FAR COURTS AND LOCAL GOVERNMENTS MAY GO IN BARRING PROTEST ACTIVITIES IN BUFFER ZONES AROUND CLINICS MEANWHILE CONGRESS IS EXPECTED IN THE NEAR FUTURE TO PASS LEGISLATION THAT WOULD MAKE IT A FEDERAL CRIME TO BLOCK WOMEN FROM ENTERING OR LEAVING ABORTION CLINICS THAT BILL SLIGHTLY DIFFERENT VERSIONS OF WHICH HAVE PASSED BOTH HOUSES WOULD CREATE A NEW BASIS FOR CIVIL SUITS UNLIKE RICO THE CLINIC PROTECTION LAW WOULDN'T REQUIRE PLAINTIFFS TO PROVE A PATTERN OF RACKETEERING THE RUSSELL TWO THOUSAND INDEX'S EIGHT DAYS OF BACK TO BACK RECORDS CAME TO A HALT AS INVESTORS TOOK PROFITS THE BAROMETER WHICH TRACKS THE PERFORMANCE OF SMALL CAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES DECLINED ZERO POINT NINE ONE POINT OR ZERO POINT THREE FOUR PERCENT TO TWO HUNDRED SIXTY TWO POINT EIGHT NINE AFTER SPENDING PART OF YESTERDAY AFTERNOON IN RECORD TERRITORY SOME NETWORKING ISSUES FOLLOWED D. S. C. COMMUNICATIONS LOWER AFTER THE STOCK SKIDDED THREE AND ONE EIGHTH TO SIXTY TWO AND ONE HALF FOLLOWING A DOWNGRADE BY SALOMON BROTHERS THE PLANO TEXAS COMPANY POSTED IMPROVED FOURTH QUARTER RESULTS OF FIFTY ONE CENTS A SHARE UP FROM TWENTY EIGHT CENTS AFTER THE CLOSE DYNATECH BURLINGTON MASSACHUSETTS FELL ONE AND ONE EIGHTH TO TWENTY AND FIVE EIGHTHS AFTER REPORTING FISCAL THIRD QUARTER NET INCOME OF FOURTEEN CENTS A SHARE BELOW LAST YEAR'S FIFTY SEVEN CENTS AND ANALYSTS' FORECASTS OF TWENTY SIX CENTS ALSO IN THE TECHNOLOGY GROUP ALTRON WILMINGTON MASSACHUSETTS DECLINED SEVEN EIGHTHS TO FOURTEEN AND SEVEN EIGHTHS AND NETWORK EQUIPMENT TECHNOLOGIES N. Y. S. E. REDWOOD CITY CALIFORNIA GAVE UP ONE QUARTER TO EIGHT AND THREE QUARTERS CYRIX BASED IN RICHARDSON TEXAS SURGED THREE AND THREE QUARTERS TO TWENTY FOUR AND ONE HALF CYRIX WON THE FIRST ROUND IN ANOTHER LEGAL BATTLE WITH RIVAL INTEL OVER ITS RIGHT TO SELL COMPUTER CHIPS THAT ARE INTEL CLONES INTEL SANTA CLARA CALIFORNIA ADDED THREE EIGHTHS TO SIXTY FIVE AND ONE HALF AMONG STOCKS SENSITIVE TO INTEREST RATES PROVIDENT BANCORP CINCINNATI LOST ONE TO THIRTY ONE AND ONE HALF UNITED WISCONSIN SERVICES MILWAUKEE FELL ONE AND ONE QUARTER TO THIRTY AND SELECTIVE INSURANCE GROUP BRANCHVILLE N. J. RETREATED SEVEN EIGHTHS TO TWENTY EIGHT AND ONE QUARTER I. E. C. ELECTRONICS ROSE THREE QUARTERS TO THIRTEEN AND ONE HALF FOLLOWING ITS RELEASE OF IMPROVED FISCAL FIRST QUARTER EARNINGS THE NEWARK N. Y. MAKER OF COMPLEX CIRCUIT BOARD ASSEMBLIES SAID IT EARNED THIRTY SEVEN CENTS A SHARE ON MORE SHARES IN THE LATEST QUARTER UP FROM TWENTY TWO CENTS A YEAR EARLIER HUNTINGDON INTERNATIONAL HOLDINGS N. Y. S. E. OF THE U. K. PLUMMETED TWO AND ONE HALF TO EIGHT AND FIVE EIGHTHS THE PROVIDER OF CONSULTING ENGINEERING AND CHEMISTRY SERVICES SAID ITS ESTIMATED OPERATING PROFIT FOR THE FISCAL FIRST QUARTER ENDED DECEMBER THIRTY FIRST IS QUOTE SIGNIFICANTLY BELOW QUOTE NET INCOME OF TWENTY THREE CENTS AN AMERICAN DEPOSITARY RECEIPT REPORTED A YEAR EARLIER TELIOS PHARMACEUTICALS SAN DIEGO PLUNGED ONE AND THREE EIGHTHS TO FOUR AND SEVEN EIGHTHS THE COMPANY SAID THE FOOD AND DRUG ADMINISTRATION IS SEEKING FURTHER INFORMATION ABOUT CERTAIN ASPECTS OF PREVIOUSLY SUBMITTED CLINICAL DATA REGARDING TELIOS' ARGIDENE GEL FOR TREATMENT OF DIABETIC FOOT ULCERS GREENWICH PHARMACEUTICALS FORT WASHINGTON PENNSYLVANIA JUMPED FIVE EIGHTHS TO THREE AND SEVEN EIGHTHS IN HEAVY TRADING ANALYSTS SAID THE SHARES ROSE AHEAD OF THURSDAY'S MEETING WITH THE F. D. A.'S ARTHRITIS DRUGS ADVISORY COMMITTEE NATIONAL STEEL N. Y. S. E. ADDED ONE AND THREE QUARTERS TO FIFTEEN AND SEVEN EIGHTHS FOLLOWING NEWS THAT IT WILL RECEIVE A ONE HUNDRED TEN MILLION DOLLAR CASH INJECTION FROM A LAWSUIT THE COMPANY AND OTHER STEELMAKERS BROUGHT AGAINST A U. S. X. SUBSIDIARY THE U. S. SUPREME COURT SAID IT WILL LET STAND A TWO HUNDRED TEN MILLION DOLLAR ANTITRUST AWARD AGAINST BESSEMER AND LAKE ERIE RAILROAD THE U. S. X. UNIT NATIONAL STEEL BASED IN MISHAWAKA INDIANA WAS AWARDED EIGHTY SEVEN POINT FIVE MILLION DOLLARS PLUS INTEREST CASINO MAGIC GAINED ONE AND ONE EIGHTH TO SEVENTEEN THE BAY SAINT LOUIS MISSOURI COMPANY SAID ITS GATEWAY CASINO COMPANY JOINT VENTURE WITH CAESARS WORLD HAS WON THE RIGHT TO NEGOTIATE FOR THE THIRD OF THREE RIVERBOAT GAMBLING SITES PEGGED FOR SAINT LOUIS FIRST TEAM SPORTS MOUNDS VIEW MINNESOTA ROSE THREE QUARTERS TO SEVEN AND THREE QUARTERS THE COMPANY SAID IT WAS SELECTED AS A SUPPLIER TO WAL MART STORES FOR A NUMBER OF ITS IN LINE SKATE PRODUCTS FIRST TEAM SAID IT THINKS SALES TO WAL MART WILL HAVE A POSITIVE IMPACT ON ITS FISCAL NINETEEN NINETY FIVE SALES RESULTS TRADERS SUCH AS LARRY KINNEY HEAD OF OVER THE COUNTER TRADING AT SOUNDVIEW FINANCIAL GROUP SAID SHARP SWINGS ON THE NEW YORK STOCK EXCHANGE DUE TO PROGRAMS INTERFERED WITH THE ABILITY OF SMALL STOCKS TO MAINTAIN THEIR RECORD LEVELS THE DOW JONES INDUSTRIAL AVERAGE JUMPED AROUND SAILING UP AS MANY AS NINETEEN POINTS FROM FRIDAY'S RECORD OF THREE THOUSAND NINE HUNDRED FOURTEEN POINT FOUR EIGHT BY THE CLOSE THE BIG BOARD INDICATOR HAD EASED ABOUT ONE AND THREE QUARTERS POINTS IT WAS JUST VERY SLOPPY ALL AROUND MR. KINNEY SAID IT WAS THE COMBINATION OF PROFIT TAKING AND THAT THE BREADTH DIDN'T LOOK TOO GOOD THE NASDAQ STOCK MARKET'S ADVANCE DECLINE LINE SHOWED LOSERS BEATING OUT GAINERS ONE THOUSAND SEVEN HUNDRED SIX TO ONE THOUSAND THREE HUNDRED SIXTY NASDAQ NATIONAL MARKET VOLUME WAS AT TWO HUNDRED FIFTY SEVEN MILLION ONE HUNDRED SIXTY THOUSAND EIGHT HUNDRED ONE SHARES TOTAL VOLUME REGISTERED THREE HUNDRED TWO MILLION FOUR HUNDRED FORTY FIVE THOUSAND ONE HUNDRED ONE SHARES ON FRIDAY NATIONAL MARKET TURNOVER STOOD AT TWO HUNDRED NINETY THREE MILLION SEVEN HUNDRED TEN THOUSAND SIX HUNDRED AND OVERALL VOLUME WAS THREE HUNDRED FORTY NINE MILLION FOUR HUNDRED THIRTY TWO THOUSAND THREE HUNDRED THE NASDAQ COMPOSITE INDEX SLIPPED THREE POINT SIX THREE POINTS OR ZERO POINT FOUR SIX PERCENT TO END AT SEVEN HUNDRED NINETY POINT SIX FIVE AFTER RISING BRIEFLY ABOVE FRIDAY'S RECORD EARLY YESTERDAY AFTERNOON NASDAQ NATIONAL MARKET STOCKS THAT SET HIGHS FOR THE YEAR TO DATE TOTALED NINETY NINE WHILE TWENTY TWO HIT LOWS THOMAS E. ROBINSON FORTY SIX YEARS OLD WAS APPOINTED A DIRECTOR OF THE OWNER AND OPERATOR OF OUTLET CENTERS MR. ROBINSON IS A SENIOR EXECUTIVE OF JERRY J. MOORE INVESTMENTS A TEXAS BASED OWNER AND OPERATOR OF SHOPPING CENTERS HIS APPOINTMENT INCREASES THE SIZE OF THE BOARD TO SIX MEMBERS QUOTE YOU WAKE UP EVERY MORNING AND THE PAPERS SAY YOU'RE A FASCIST JUST IMAGINE WHAT KIND OF A STATE YOU WOULD BE IN THAT'S HOW ONE LAWMAKER IN RUSSIA'S NEW PARLIAMENT ALEXANDER NEVZOROV EXPLAINS THE LATEST OUTBURSTS OF HIS FELLOW DEPUTY VLADIMIR ZHIRINOVSKY IN THE TWO WEEKS SINCE RUSSIA'S NEW LEGISLATURE CONVENED MR. ZHIRINOVSKY HAS LANDED IN A FIST FIGHT IN THE PARLIAMENTARY LUNCH LINE TRIED TO SHOUT DOWN HIS POLITICAL OPPONENTS AT THE MICROPHONE THREATENED TO JAIL THEM AND TOLD SOME OF THEM THEY BELONG IN PSYCHIATRIC HOSPITALS THIS FOLLOWS A ONE MONTH STRETCH BETWEEN THE DECEMBER ELECTIONS AND THE OPENING OF PARLIAMENT IN WHICH MR. ZHIRINOVSKY AMONG OTHER THINGS CALLED FOR THE PRESIDENT OF BULGARIA TO RESIGN SAID RUSSIA HAD A SECRET WEAPON THE ELIPTON STRONGER THAN THE ATOMIC BOMB AND THREATENED GERMANY WITH WORLD WAR THREE THE HOPE AMONG MR. ZHIRINOVSKY'S CRITICS IS THAT HE MIGHT SPIN SO FAR OUT OF CONTROL THAT HE WILL DESTROY HIMSELF POLITICALLY BEFORE HE WRECKS ANYTHING ELSE HE'S AN IDIOT WHEN YOU'RE WATCHING TELEVISION IT DOESN'T MAKE ANY DIFFERENCE WHETHER YOU'RE WATCHING CLOWNS AND CIRCUSES OR ZHIRINOVSKY SAYS AN OUT OF WORK DRIVER FROM THE CITY OF TAMBOV VOLODYA STEPANOV BUT RUSSIA IS A COUNTRY WHERE GOOD MANNERS DON'T TOP THE LIST OF PRIZED POLITICAL CREDENTIALS AND THOUGH MANY RUSSIANS DISAPPROVE OF BOTH MR. ZHIRINOVSKY'S BEHAVIOR AND HIS IDEAS TO OTHERS HE OFFERS A BRAND OF JACKBOOT BURLESQUE THAT SUITS THE MOOD OF THE TIMES HE ARTICULATES THE BRUTE ANGER SWELLING AMONG PEOPLE FACED WITH HIGH INFLATION CHRONIC UNCERTAINTY AND THE HUMILIATING SENSE THAT THEY INHABIT A SCARRED AND SHRUNKEN NATION IN MR. ZHIRINOVSKY'S ELECTORAL DISTRICT OF SCHELKOVO ON THE OUTSKIRTS OF MOSCOW A PENSIONER ANNA KOSHALEVA SAYS SHE LIKES MR. ZHIRINOVSKY BECAUSE THOUGH ALL OTHER POLITICIANS LOOK ALIKE TO HER HE STANDS OUT AT THE SHOE COUNTER OF THE NEARBY OLYMPIA SALON SALESLADY NINA LAPUTIN SAYS QUOTE WHERE I LIVE THEY'RE ALL FOR ZHIRINOVSKY MAYBE BECAUSE HE WANTS TO OPEN THE ROAD FOR THE YOUNG QUOTE NOT ALL THE YOUNG AGREE FROM WHAT I'VE HEARD HE'S A MENTAL CASE SAYS SIXTEEN YEAR OLD YEVGENY GORDEYEV STROLLING BY OUTSIDE WHO ASKS HOW CAN YOU LIKE A PERSON WHO SAYS YOU CAN SELL VODKA FOR THREE RUBLES ONE FIFTH OF A CENT A BOTTLE SOME DEPUTIES IN MR. ZHIRINOVSKY'S LIBERAL DEMOCRATIC PARTY SAY HIS BEHAVIOR IS SIMPLY WHAT ANY NORMAL PERSON MIGHT DO WHEN PROVOKED WE ARE NORMAL PEOPLE WE REACT NORMALLY TO THE AGGRESSIVENESS OF OTHERS ASSERTS L. D. P. MEMBER SERGEI ABELTSEV A STURDY BALD DEPUTY WHOM MR. ZHIRINOVSKY HAS ANNOINTED AS SECURITY MINISTER OF THE CABINET HE INTENDS TO APPOINT IF HE'S ELECTED PRESIDENT ASKED ABOUT THE FIST FIGHT IN WHICH A LIBERAL DEPUTY MARK GORYACHEV STARTED BRAWLING WITH MR. ZHIRINOVSKY AFTER AN EXCHANGE OF INSULTS AT THE PARLIAMENTARY LUNCH COUNTER MR. ABELTSEV SAYS MR. ZHIRINOVSKY AND HIS PARTY FOLLOWERS SHOULD HAVE BEEN PRAISED FOR TREATING THEIR ENEMIES WITH RESTRAINT IF ZHIRINOVSKY WOULD TELL US TO DO SO WE WOULD KILL THEM LIKE FLIES MR. ZHIRINOVSKY ASKED IN AN INTERVIEW IN THE HALLS OF PARLIAMENT LAST WEEK WHETHER HE THOUGHT HE MIGHT HAVE GONE TOO FAR IN SOME OF HIS RECENT ACTIONS REPLIED THAT THE PROBLEM ISN'T WHAT HE DOES BUT HOW IT'S REPORTED HE WOULD LIKE TO CORRECT THIS IF YOU SAY I'M A FASCIST I'LL SUE YOU FOR TEN MILLION MARKS OR TEN MILLION DOLLARS AND YOUR PAPER WILL GO OUT OF BUSINESS AND YOUR EDITOR IN CHIEF WILL KILL HIMSELF CROWDED AROUND HIM A SCORE OF L. D. P. DEPUTIES CLAPPED AND CHEERED IN THE INTERVIEW MR. ZHIRINOVSKY OFFERED A FURTHER SAMPLE OF HIS STYLE EXPLAINING THAT HE STANDS FOR NATIONAL PRIDE BELGIUM HE SAID IS JUST A LITTLE COUNTRY NEXT TO GERMANY AND ALL THEY HAVE IN BELGIUM IS BEER AND HOT DOGS I DON'T WANT RUSSIA TO BE JUST A LITTLE COUNTRY NEXT TO SOMETHING ELSE IN RUSSIA WE WON'T HAVE BEER AND HOT DOGS BUT WE WILL HAVE OUR GREAT FATHERLAND QUOTE AMONG MANY PARLIAMENTARIANS OUTSIDE THE L. D. P.'S SIXTY FOUR SEAT BLOCK IN THE FOUR HUNDRED FIFTY SEAT CHAMBER MR. ZHIRINOVSKY'S THEATRICS PLAY LESS WELL LYUBOV OLYENIK OF THE COMMUNIST PARTY NOTED HE SHOULD CONTROL HIMSELF HE'S DOING BADLY WITH THOSE MANNERS MR. ZHIRINOVSKY'S BLUSTER IN THE LOWER HOUSE OF PARLIAMENT THE STATE DUMA DIDN'T GET HIM ELECTED SPEAKER WHICH AT ONE POINT HE HAD WANTED NEITHER DID IT GET HIM THE CHAIRMANSHIP OF THE FOREIGN RELATIONS COMMITTEE WHICH HE HAD ALSO WANTED I THINK HE WILL DISCREDIT HIMSELF SAYS AN AIDE TO PRESIDENT BORIS YELTSIN THEODORE SHELOV KOVEDYAEV SMOKING A CIGAR JUST OUTSIDE THE PARLIAMENTARY CHAMBER BUT ADDS MR. SHELOV KOVEDYAEV WE NEED TO MAKE A STRONG EFFORT TO HELP HIM IN DOING THAT ONE SHOULD NOT UNDERESTIMATE THE DANGER IN ZHIRINOVSKY ONE EFFORT TO HELP IN THE DISCREDITING OF MR. ZHIRINOVSKY CAME LAST WEEK FROM THE MAYOR OF SAINT PETERSBURG ANATALOY SOBCHAK MR. SOBCHAK TOLD THE RUSSIAN NEWSPAPER LITERATURNAYA GAZETA THAT HE HAD QUOTE TRUSTWORTHY FACTS QUOTE SHOWING THAT MR. ZHIRINOVSKY HAD BEEN A K. G. B. AGENT AND THAT THE K. G. B. HAD SET UP MR. ZHIRINOVSKY'S L. D. P. IN NINETEEN EIGHTY NINE BUT MR. SOBCHAK HAS YET TO SUBSTANTIATE HIS ALLEGATIONS MR. NEVZOROV WHO IS AN INDEPENDENT DEPUTY FROM SAINT PETERSBURG SUMS UP THE ENTHUSIASM THAT MR. ZHIRINOVSKY SEEMS TO IMPART TO HIS SUPPORTERS FOR ME ZHIRINOVSKY RESEMBLES A FIGHTER PLANE WITH FULL GAS TANKS WHEREAS YELTSIN'S GAS TANKS ARE EMPTY WEST ONE BANCORP COMPLETED ITS ACQUISITION OF IDAHO STATE BANK AS REPORTED THE COMPANY SAID IN APRIL THAT IT SIGNED A DEFINITIVE AGREEMENT TO MERGE THE TARGET BANK INTO WEST ONE BANK IDAHO AN AFFILIATE OF WEST ONE BANCORP IN A NEWS RELEASE WEST ONE BANCORP SAID IDAHO STATE BANK SHAREHOLDERS RECEIVED A TOTAL OF SIXTY SIX THOUSAND SIX HUNDRED SIXTY SIX WEST ONE COMMON SHARES FOR ALL COMMON STOCK OUTSTANDING OF IDAHO STATE BANK ALI A. FADEL THIRTY EIGHT YEARS OLD WAS NAMED PRESIDENT OF THE ASSOCIATED SPRING UNIT OF THIS MAKER OF DURABLE GOODS COMPONENTS SUCCEEDING THEODORE E. MARTIN FIFTY FOUR WHO WAS RECENTLY NAMED EXECUTIVE VICE PRESIDENT OPERATIONS AT THE PARENT J. GARY LEWIS FORTY NINE WAS NAMED PRESIDENT OF THE BOWMAN DISTRIBUTION UNIT SUCCEEDING JOHN M. KNAPP WHO RESIGNED LAST YEAR THE VALUE OF ANNOUNCED MERGERS AND ACQUISITIONS ROSE EIGHTY SIX PERCENT IN NINETEEN NINETY THREE TO A LEVEL THAT HASN'T BEEN SEEN SINCE THE LATE NINETEEN EIGHTIES A MERRILL LYNCH AND COMPANY SURVEY FOUND THE TOTAL VALUE OF PROPOSED TRANSACTIONS DISCLOSING A PURCHASE PRICE WAS ONE HUNDRED SEVENTY SIX POINT FOUR BILLION DOLLARS COMPARED WITH NINETY FOUR POINT NINE BILLION DOLLARS IN NINETEEN NINETY TWO BUT THE NUMBER OF SUCH DEALS REMAINED RELATIVELY STEADY IN ALL TWO THOUSAND SIX HUNDRED SIXTY FOUR TRANSACTIONS WERE ANNOUNCED DURING THE YEAR A MERE FOUR PERCENT INCREASE FROM A YEAR AGO ACCORDING TO THE SURVEY BY BUSINESS ADVISORY SERVICES A DIVISION OF MERRILL LYNCH BASED IN SCHAUMBURG ILLINOIS THE TOTAL VALUE OF MERGERS AND ACQUISITIONS WHICH WAS AS HIGH AS TWO HUNDRED FORTY SIX POINT NINE BILLION DOLLARS IN NINETEEN EIGHTY EIGHT BEGAN DROPPING SIGNIFICANTLY IN NINETEEN NINETY THE LOWEST VALUE IN RECENT YEARS CAME IN NINETEEN NINETY ONE WHEN DEALS TOTALED SEVENTY ONE POINT TWO BILLION DOLLARS ACCORDING TO MERRILL LYNCH DATA GIANT DEALS ONE BILLION DOLLARS OR MORE SHOWED THE SHARPEST RISE THE TOTAL VALUE OF THESE DEALS JUMPED TWO HUNDRED FORTY ONE PERCENT TO ONE HUNDRED ONE BILLION DOLLARS FROM TWENTY NINE POINT SIX BILLION DOLLARS IN NINETEEN NINETY TWO THERE WERE TWENTY SEVEN ONE BILLION DOLLAR PLUS TRANSACTIONS ANNOUNCED LAST YEAR COMPARED WITH SEVENTEEN IN NINETEEN NINETY TWO THE NUMBER OF DEALS VALUED AT MORE THAN ONE HUNDRED MILLION DOLLARS ROSE TWENTY TWO PERCENT AND THEIR TOTAL VALUE DOUBLED THE SURVEY SAID THE BIGGEST DEAL ANNOUNCED DURING THE YEAR WAS BELL ATLANTIC CORPORATION'S ACQUISITION OF TELE COMMUNICATIONS INCORPORATED MERRILL LYNCH VALUED THE DEAL AT SIXTEEN BILLION DOLLARS OF THE YEAR'S FIFTEEN LARGEST DEALS SIX WERE IN THE BROADCAST AND COMMUNICATIONS INDUSTRY ABOUT TWENTY TWO PERCENT OF THE YEAR'S MERGERS AND ACQUISITIONS WERE DEALS BETWEEN U. S. AND FOREIGN COMPANIES A NUMBER CONSISTENT WITH NINETEEN NINETY TWO LEVELS HOWEVER THE NUMBER OF FOREIGN BUYERS GREW TO ONE HUNDRED NINETY UP SIXTEEN PERCENT FROM A YEAR AGO THE U. K. REMAINED THE MOST ACTIVE ARENA FOR BOTH FOREIGN ACQUISITIONS AND SALES WITH FIFTY TWO BUYERS AND EIGHTY THREE SELLERS FOLLOWED BY CANADA WITH FORTY FOUR BUYERS AND FORTY NINE SELLERS MERRILL LYNCH SAID BANKING AND FINANCE WAS THE MOST ACTIVE INDUSTRY IN THE MERGERS AND ACQUISITIONS FIELD THERE WERE TWO HUNDRED NINETY SIX DEALS IN THAT INDUSTRY IN NINETEEN NINETY THREE COMPARED WITH TWO HUNDRED SIXTY EIGHT A YEAR EARLIER THE SURVEY ALSO FOUND THAT THE TOTAL VALUE OF BANKING AND FINANCE DEALS ROSE FIFTY NINE PERCENT TO TWENTY SIX POINT TWO BILLION DOLLARS FROM SIXTEEN POINT FIVE BILLION DOLLARS BASED ON THE NINE HUNDRED TWENTY NINE TRANSACTIONS FOR WHICH METHOD OF PAYMENT INFORMATION WAS AVAILABLE MERRILL LYNCH SAID FORTY PERCENT OF NINETEEN NINETY THREE MERGERS AND ACQUISITIONS WERE ALL STOCK DEALS AND TWENTY FIVE PERCENT INVOLVED ONLY CASH THE OTHER THIRTY FIVE PERCENT INVOLVED SOME COMBINATION OF CASH STOCK AND DEBT HEWLETT PACKARD COMPANY BEST KNOWN FOR ITS COMPUTER PRINTERS AND WORKSTATIONS IS POSING ITS FIRST SERIOUS CHALLENGE IN THE PERSONAL COMPUTER MARKET LAST YEAR IT MORE THAN DOUBLED ITS WORLD WIDE P. C. SALES TO ABOUT SIX HUNDRED FORTY THOUSAND FROM THREE HUNDRED FIVE THOUSAND IN NINETEEN NINETY TWO ACCORDING TO ESTIMATES BY INTERNATIONAL DATA CORPORATION A MARKET RESEARCH FIRM IN FRAMINGHAM MASSACHUSETTS THAT PUTS IT JUST A NOSE BEHIND MAIL ORDER STAR GATEWAY TWO THOUSAND INCORPORATED WHICH HELD THE NUMBER TEN SPOT IN MARKET SHARE FOR NINETEEN NINETY THREE H. P. WAS SEVENTEENTH IN NINETEEN NINETY TWO NOW IT HAS PROCLAIMED THAT IT INTENDS TO BE IN THE TOP FIVE BY NEXT YEAR QUOTE THERE IS NO COMPANY THEIR SIZE OR LARGER IN P. C. SHIPMENTS THAT HAS GROWN AS FAST QUOTE SAYS ERIC LEWIS MANAGER OF P. C. HARDWARE RESEARCH FOR INTERNATIONAL DATA WHILE H. P. IS THE U. S.'S SECOND LARGEST COMPUTER MAKER IN TERMS OF REVENUE ITS P. C. BUSINESS WAS A SIDESHOW UNTIL MID NINETEEN NINETY TWO AS COMPETITORS SUCH AS COMPAQ COMPUTER CORPORATION RAPIDLY GAINED MARKET SHARE H. P. FUMBLED OFFERING OVERPRICED NARROWLY MARKETED MACHINES BUT WITH P. C. SALES GROWING FASTER THAN ANY OTHER PART OF THE HARDWARE INDUSTRY H. P. DECIDED LESS THAN TWO YEARS AGO TO GO AFTER THE MARKET WITH GUSTO CHOPPING PRICES AND MARKETING AGGRESSIVELY IF YOU WANT TO BE A MAJOR COMPUTER COMPANY YOU HAVE TO HAVE A SIGNIFICANT PRESENCE IN PERSONAL COMPUTERS SAYS BOB FRANKENBERG VICE PRESIDENT AND GENERAL MANAGER OF H. P'S PERSONAL INFORMATION PRODUCTS GROUP HE NOTES THAT P. C.S NOW ACCOUNT FOR MORE THAN HALF OF WORLD WIDE COMPUTER HARDWARE SALES H. P. IS EMERGING JUST AS OTHER BIG COMPUTER MAKERS PUSH HARDER INTO THE P. C. BUSINESS THE P. C. IS ONE OF THE ONLY ATTRACTIVE SECTORS IN TERMS OF GROWTH SAYS PHILIPPE DE MARCILLAC DIRECTOR OF WORLD WIDE P. C. RESEARCH FOR DATAQUEST INCORPORATED A MARKET RESEARCH FIRM IT IS ALSO A MARKET THAT IS FAR FROM SATURATED DIGITAL EQUIPMENT CORPORATION LAST YEAR MORE THAN DOUBLED ITS P. C. SHIPMENTS AND MARKET LEADER INTERNATIONAL BUSINESS MACHINES CORPORATION HAS BOOSTED SHARE THROUGH A RECENTLY STARTED PERSONAL COMPUTER DIVISION MEANWHILE H. P'S PROWESS IN P. C.S COMES AFTER PAST FAILURES THE COMPANY INTRODUCED A LINE OF P. C.S IN THE EARLY NINETEEN EIGHTIES THAT NEVER GAINED MUCH POPULARITY LARGELY BECAUSE THEY WEREN'T COMPATIBLE WITH THE I. B. M. P. C. STANDARD AFTER SWITCHING TO I. B. M. COMPATIBILITY IN THE MID NINETEEN EIGHTIES HOWEVER SALES STILL LANGUISHED SINCE H. P'S PRICES WERE AS MUCH AS ONE THIRD HIGHER THAN THOSE OF RIVALS THE DIFFERENTIATION WAS IN QUALITY AND RELIABILITY MR. FRANKENBERG SAYS SOME CUSTOMERS DID APPRECIATE THAT BUT NOT ENOUGH AT A SALES MEETING IN JUNE NINETEEN NINETY TWO H. P. EXECUTIVES DECIDED TO CUT PRICES DRASTICALLY BUT THAT MEANT GETTING COSTS IN LINE IT CLOSED MANUFACTURING OPERATIONS IN BRAZIL AND IN GUADALAJARA MEXICO AND CUT ITS P. C. STAFF FORTY PERCENT MOST WENT TO OTHER DIVISIONS WITHIN THE COMPANY QUOTE IT FELT A BIT LIKE JUMPING BLINDFOLDED OFF A SPRINGBOARD HOPING THERE WAS WATER IN THE POOL QUOTE MR. FRANKENBERG SAYS THEN THE NEW PRICING STRATEGY RECEIVED A HAND FROM AN UNLIKELY SOURCE COMPAQ THE HOUSTON P. C. MAKER STARTED A PRICE WAR IN THE SUMMER OF NINETEEN NINETY TWO FORCING BRAND NAME COMPETITORS SUCH AS I. B. M. AND APPLE COMPUTER INCORPORATED TO LOP PRICES AT THAT TIME H. P'S HIGH END PERSONAL COMPUTER SOLD FOR ABOUT EIGHT THOUSAND DOLLARS AND THE COMPETITION'S FOR ABOUT FIVE THOUSAND EIGHT HUNDRED DOLLARS BY THE END OF LAST YEAR THE SAME UNITS COST LESS THAN TWO THOUSAND DOLLARS EACH WITH THE PRICE WAR PRICES ON BRAND NAME MODELS FELL CLOSE TO THOSE OF CLONE MACHINES MADE BY SMALLER COMPANIES SENDING CUSTOMERS RUSHING TO BUY BRANDNAME COMPUTERS INCLUDING H. P'S WHY NOT BUY A MERCEDES IF YOU CAN GET IT FOR THE SAME PRICE AS A YUGO MR. FRANKENBERG SAYS IN THE FLOOD OF BUSINESS LAST YEAR VENDORS SUCH AS I. B. M. AND COMPAQ COULDN'T KEEP UP WITH DEMAND H. P. HAD EARLIER EXPANDED ITS SALES EFFORT FROM SMALLER NICHE DEALERS TO INCLUDE BIG OUTLETS SUCH AS COMPUTERLAND CORPORATION AND MICROAGE INCORPORATED IT WAS THUS POSITIONED AS A BRAND NAME ALTERNATIVE THAT LARGE DEALERS COULD RECOMMEND WITH AN AMPLE INVENTORY IT WAS ABLE TO ACCOMMODATE THE NEW BUSINESS THEY GOT OUR ATTENTION AND THE CUSTOMER'S ATTENTION SAYS ALAN BERNHEIMER A VICE PRESIDENT OF PLEASANTON CALIFORNIA BASED COMPUTERLAND THE COMPANY CREDITS NOT ONLY AGGRESSIVE PRICING FOR ITS P. C. TURNAROUND BUT ALSO A NEW PRODUCT CYCLE THAT WAS SHORTENED TO SIX MONTHS FROM EIGHTEEN MONTHS H. P. ALSO ADDED FEATURES TO SOME MODELS INCLUDING A COFFEE BREAK BUTTON THAT LETS A USER BLANK THE SCREEN DETERRING PRYING EYES WITHOUT TURNING OFF THE WHOLE MACHINE THAT FEATURE ALONE THE COMPANY SAID WAS RESPONSIBLE FOR THE SALE OF SEVENTY FIVE THOUSAND UNITS TO BANKERS INSURANCE COMPANIES AND FINANCIAL CONCERNS THE COMPANY SAID IT DOESN'T PROVIDE A BREAKDOWN OF REVENUE BY PRODUCT CATEGORY FOR COMPETITIVE REASONS BESIDES P. C.S H. P. MAKES PRINTERS WORKSTATIONS AND MASS STORAGE DEVICES DESPITE ITS SUCCESSES MEETING ITS GOAL OF BECOMING A TOP FIVE P. C. MAKER WILL BE TOUGH BECAUSE ITS COMPETITORS ARE ALSO GROWING QUICKLY COMPAQ NUMBER THREE WORLDWIDE IN P. C. SHIPMENTS NEARLY DOUBLED SHIPMENTS IN NINETEEN NINETY THREE TO THREE MILLION FROM A YEAR EARLIER ONE POINT SIX MILLION APPLE NUMBER TWO BEHIND I. B. M. ALSO BOOSTED ITS SHIPMENTS LAST YEAR BY NEARLY ONE THIRD TO THREE POINT SIX MILLION OTHER TOP TEN VENDORS A. S. T. RESEARCH INCORPORATED DELL COMPUTER CORPORATION AND PACKARD BELL ELECTRONICS INCORPORATED ALSO GREW SIGNIFICANTLY LAST YEAR I THINK THE PROSPECTS FOR H. P. ARE VERY GOOD AS IT RELATES TO ITS ABILITY TO DEAL WITH THIRD TIER CLONES SAYS DAVID BOUCHER A VICE PRESIDENT OF I. B. M.'S P. C. UNIT FOR THE AMERICAS BUT THE QUESTION WILL BE WHETHER THEY HAVE THE STAYING POWER IN A VERY TOUGH MARGIN SENSITIVE BUSINESS THE TRUE TEST FOR H. P. ANALYSTS SAY WILL BE WHEN IT AND OTHER P. C. MAKERS FINISH ABSORBING MARKET SHARE FROM SMALLER COMPETITORS AND TURN THEIR GUNS ON ONE ANOTHER WITH MOST LEADING MANUFACTURERS WELL EQUIPPED TO COMPETE WITH ONE ANOTHER QUOTE MARKET SHARE GAINS WILL BE MORE DIFFICULT IN THE NEXT TWO YEARS QUOTE SAYS TODD BAKAR SENIOR TECHNOLOGY ANALYST FOR HAMBRECHT AND QUIST IT'S GOING TO BE A DOGFIGHT PRESIDENT CLINTON'S QUOTE SUPERCAR QUOTE INITIATIVE LOOKS LIKE A GRAVY TRAIN THE ONE BILLION DOLLAR FEDERAL PROGRAM FOR DEVELOPING A NEW GENERATION OF ULTRA EFFICIENT ULTRA CLEAN VEHICLES IS SHAPING UP TO BE A GOLDEN OPPORTUNITY FOR THE BIG THREE U. S. AUTO MAKERS DETROIT WILL BE THE PRIMARY RECIPIENT OF THE RESEARCH FUNDS ALLOWING THE AUTO MAKERS TO BOLSTER THEIR RESEARCH AND DEVELOPMENT BUDGETS WITH FEDERAL DOLLARS WELL INTO THE NEXT CENTURY THE BIG THREE ARE TRYING TO STAY IN BUSINESS SAID DOCTOR MARY GOOD THE CLINTON APPOINTEE WHO IS SUPERVISING THE VENTURE IN A RECENT PRESS BRIEFING DOCTOR GOOD BLUNTLY EXPRESSED THE ADMINISTRATION'S SUPPORT OF THAT SAME OBJECTIVE THE GOAL OF THE SUPERCAR PROGRAM IS AN AFFORDABLE FAMILY SEDAN WITH THREE TIMES THE FUEL EFFICIENCY OF TODAY'S AVERAGE VEHICLE THE CONSEQUENCES OF BIG THREE CONTROL ARE HUGE THE SUPERCAR PROGRAM WILL HAVE NO INPUT FROM JAPANESE AUTO MAKERS WHICH DETROIT AND WASHINGTON ARE FIGHTING OVER TRADE ISSUES NO MANDATES FOR BUILDING ZERO EMISSION VEHICLES WHICH DETROIT OPPOSES IN CALIFORNIA AND THE NORTHEAST AND NO IMMEDIATE PRESSURE TO PRODUCE A MARKETABLE PRODUCT THE PROGRAM'S FIRST CONCEPT VEHICLE IS DUE IN SIX YEARS AND ITS FIRST PRODUCTION PROTOTYPE IS DUE IN TEN YEARS SUPPORTERS LIKE JOEL MOSES DEAN OF ENGINEERING AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY ARE OPTIMISTIC THE PROGRAM HE SAID IS OPENING THE DOORS TO UNIVERSITIES AND TO A NEW BREED OF ENGINEERING STUDENTS WHO ARE INTERESTED IN DOING GOOD THINGS FOR THE WORLD BUT ALSO IN MAKING MONEY FOR AMERICAN INDUSTRY BUT CRITICS SAY THAT UNDER THE BIG THREE'S LEADERSHIP THE SUPERCAR PROGRAM WON'T MOVE AS QUICKLY OR AGGRESSIVELY AS IT COULD THIS IS DETROIT'S SHOW SAID JOE MACEDA VICE PRESIDENT OF H. POWER CORPORATION A BELLEVILLE N. J. DEVELOPER OF ALTERNATIVE FUEL TECHNOLOGIES THAT PARTICIPATED IN THE SUPERCAR PROGRAM'S FIRST WORKING MEETING RECENTLY IN WASHINGTON MOREOVER GENERAL MOTORS CORPORATION FORD MOTOR COMPANY AND CHRYSLER CORPORATION HAVE BEEN PROMISED A SAY IN WHICH TECHNOLOGIES AND COMPANIES WILL BENEFIT FROM THE PROGRAM'S ONE BILLION DOLLAR BUDGET AND RESOURCES WHICH WILL COME FROM BOTH DETROIT AND WASHINGTON WASHINGTON WILL CONTRIBUTE THE RESEARCH AND DEVELOPMENT FUNDS AND DETROIT WILL ULTIMATELY PAY FOR MANUFACTURING THAT GIVES DETROIT INFLUENCE OVER ANY NATIONAL LAB OR FEDERAL AGENCY ENGAGED IN ALTERNATIVE FUEL RESEARCH SUCH AS THE DEPARTMENT OF ENERGY IN FACT THE BIG THREE'S BIGGEST PAYOFF FROM THE SUPERCAR EFFORT MAY BE A RELAXATION OF A BROAD ARRAY OF COSTLY REGULATIONS IF AN INDUSTRY WORKS CLOSELY WITH A GOVERNMENT AND YOU HAVE AN OPEN BOOK SUCH A GOVERNMENT WON'T HAVE TO REGULATE TO THE SAME EXTENT SAID FRANCOIS CAISTANG CHRYSLER'S VICE PRESIDENT OF TECHNOLOGY THE SUPERCAR PROGRAM MAY BE THE FIRST EXAMPLE OF WHAT GOVERNMENT INDUSTRY PARTNERSHIP WILL LOOK LIKE UNDER THE CLINTON ADMINISTRATION IN THE PAST WASHINGTON HAS FUNNELED BILLIONS OF RESEARCH AND DEVELOPMENT DOLLARS THROUGH ITS RICH POOL OF LABS LARGELY TO THE BENEFIT OF DEFENSE CONTRACTORS NOW THE CLINTON ADMINISTRATION IS RESLICING THE GOVERNMENT'S SEVENTY EIGHT BILLION DOLLARS R. AND D. BUDGET PIE GIVING LESS TO DEFENSE AND MORE TO COMMERCIAL AND EXPORT ORIENTED MANUFACTURERS LIKE THE BIG THREE SOME CLEAN CAR ADVOCATES ARGUE THAT BY TWO THOUSAND FOUR OTHER NATIONS AND INDUSTRIES WILL HAVE A JUMP ON THE BIG THREE BY THAT TIME THE WORLD THEY SAY MAY ALREADY BE FLOODED WITH SUPERCARS POWERED BY TECHNOLOGIES SUCH AS FUEL CELLS FLYWHEELS AND ADVANCED FORMS OF CHEMICAL BATTERIES THE MONEY IS ALL FUNNELED THROUGH THE BIG THREE SAID PAUL MILLER A SENIOR ENERGY FELLOW FOR THE W. ALTON JONES FOUNDATION A CHARLOTTSVILLE VIRGINIA ENDOWMENT THAT FUNDS ENVIRONMENTAL GROUPS QUOTE THE SMALL ENTREPRENEURIAL FIRMS EVEN THE DEFENSE CONTRACTORS ARE PRETTY MUCH LIMITED BY WHAT THE BIG THREE ARE WILLING TO GIVE THEM QUOTE THAT COULD MEAN THAT IN THE HUNT TO DEVELOP THE AUTOMOBILE OF THE FUTURE SOME CUTTING EDGE IDEAS WON'T REACH MR. CLINTON'S DESK AT THE PROGRAM'S FIRST WORKING MEETING ONLY ONE OF ITS ONE HUNDRED THIRTEEN PARTICIPANTS CAME FROM THE GROWING NUMBER OF COMPANIES DEVELOPING ELECTRIC VEHICLES FOR CALIFORNIA'S ZERO EMISSION MANDATE AND ONE CAME FROM AEROVIRONMENT INCORPORATED A MONROVIA CALIFORNIA COMPANY OWNED IN PART BY GENERAL MOTORS CALSTART A LOS ANGELES BASED GROUP OF ALTERNATIVE VEHICLE COMPANIES THAT WAS FORMED ESPECIALLY TO ACQUIRE FEDERAL RESEARCH GRANTS CURRENTLY SUPPORTS THE SUPERCAR EFFORT BUT THE ORGANIZATION'S PRESIDENT WARNS THAT COULD CHANGE IF THE BIG THREE STARTS TO EXERT TOO MUCH CONTROL WE HAVE BEEN ASSURED BY THE ADMINISTRATION THAT THIS WOULD BE MUCH MORE THAN A BIG THREE EFFORT SAID MIKE GAGE CALSTART'S PRESIDENT AND CHIEF EXECUTIVE OFFICER BUT CERTAINLY THERE ARE SOME CONFLICTING MESSAGES HERE ALREADY THERE ARE SIGNS THAT TECHNOLOGIES UNPOPULAR IN DETROIT MAY GET SHORT SHRIFT IN THE SUPERCAR EFFORT BIG THREE EXECUTIVES ARE LOBBYING HARD TO ROLL BACK CALIFORNIA'S REGULATION THAT TWO PERCENT OF ALL CARS SOLD IN THE STATE BY NINETEEN NINETY EIGHT BE ELECTRIC OR ZERO EMISSION VEHICLES DOCTOR GOOD MR. CLINTON'S UNDERSECRETARY FOR TECHNOLOGY AT THE COMMERCE DEPARTMENT SAID SHE EQUATES THE SEARCH FOR ZERO EMISSION VEHICLES WITH THE QUEST FOR PERPETUAL MOTION MACHINES THAT'S A VIEW CERTAIN TO CHEER DETROIT THE SUPERCAR EFFORT WON'T HAVE MUCH DIRECTION IN ITS EARLY YEARS DOCTOR GOOD SAID AS IT PURSUES A WIDE ARRAY OF TECHNOLOGIES THEN THERE WILL BE A WINNOWING PROCESS THAT ISOLATES THE TECHNOLOGIES THAT MAKE MOST SENSE FOR A FAMILY SEDAN ALONG THE WAY SHE EXPECTS PLENTY OF CRITICISM WE ARE TRYING TO KEEP THIS SIMPLE FROM THE START BECAUSE WE WANT TO KEEP THIS SUCCESSFUL SAID DOCTOR GOOD A PAST CHAIRWOMAN OF THE NATIONAL SCIENCES BOARD BUT QUOTE IF ALL WE DO IS END UP BICKERING AND NOTHING ELSE THEN I THINK THE PROGRAM WILL PROBABLY BE DISMANTLED AS I THINK IT SHOULD HIGH QUALITY AFFORDABLE READILY AVAILABLE DAY CARE FORGET IT IT CAN'T HAPPEN WHILE OFFERING ALL WORKING PARENTS FIRST RATE CHILD CARE SERVICES AT MODERATE FEES APPEARS TO BE AN ENLIGHTENED RESPONSE TO INESCAPABLE MODERN REALITIES IT ACTUALLY IS A TOTALLY IMPRACTICAL SOLUTION BASED ON A DISMAL SENSE OF DEFEATISM LET'S TAKE A LOOK AT THE REAL REALITIES BY NATURE HIGH QUALITY DAY CARE MUST BE ENORMOUSLY EXPENSIVE AND SOMEWHAT RESTRICTED REGULATIONS IN MODEL STATES STIPULATE A MAXIMUM OF THREE INFANTS OR FOUR TODDLERS TO ONE CARE GIVER AND MANY CHILD DEVELOPMENT SPECIALISTS WOULD CONTEND THAT TWO TO ONE AND THREE TO ONE ARE MORE APPROPRIATE RATIOS FURTHERMORE THE CARE GIVERS SHOULD POSSESS OUTSTANDING PERSONAL QUALITIES HAVE SUBSTANTIAL TRAINING AND EXPERIENCE AND BE WILLING TO STAY WITH THE JOB SO AS TO ENSURE AN ACCEPTABLE LEVEL OF CONSISTENCY FOR THE CHILDREN GIVEN THE REQUIRED RATIOS AND GIVEN THAT COMPETENT CARE GIVERS DESERVE COMMENSURATE SALARIES IT IS CLEAR THAT THE COST OF HIGH QUALITY DAY CARE GETS OUT OF HAND IN A HURRY IF YOU ADD IN THE OTHER FINANCIAL FACTORS FROM FACILITIES AND EQUIPMENT TO JUICE AND COOKIES YOU'RE TALKING ABOUT AMOUNTS OF MONEY THAT ARE WELL BEYOND THE MEANS OF MOST FAMILIES THAT BUSINESSES CAN'T CONTRIBUTE AS THEY STRUGGLE TO REMAIN COMPETITIVE AND THAT GOVERNMENT WON'T BE ABLE TO SUBSIDIZE WHILE STRIVING TOWARD TAX RELIEF AND DEFICIT REDUCTION EVEN IF THE FUNDS WERE MIRACULOUSLY FOUND WHERE WOULD THE VAST SUPPLY OF DAY CARE PERSONNEL COME FROM GIVEN THOSE RATIOS A LARGE PERCENTAGE OF WORKING PARENTS WOULD HAVE TO END UP WORKING AS CARE GIVERS FOR THE CHILDREN OF OTHER WORKING PARENTS IT WOULD BE CONSIDERABLY MORE COST EFFECTIVE AND WOULD MAKE A LOT MORE SENSE IF MOST PARENTS SIMPLY OPTED TO TAKE CARE OF THEIR OWN INFANTS AND TODDLERS WHICH BRINGS US TO THE SUBJECT OF CHOICE THE NOTION THAT HAVING TWO PAYCHECKS IS NOW A QUOTE NECESSITY QUOTE IS NONSENSE SURE A LOT OF POVERTY STRICKEN AND SINGLE PARENTS NEED DAY CARE TO SURVIVE BUT TOO MANY OF THE PARENTS CLAMORING FOR SUCH SERVICES AND THEREBY STRETCHING A SYSTEM BEYOND ITS CAPACITY ARE MERELY SEEKING TO SUSTAIN A LIFESTYLE THAT THEIR OWN PARENTS ONLY DREAMED ABOUT A GENERATION AGO AND NO MATTER WHAT LEVEL OF INCOME SOME COUPLES DECIDE IS INSUFFICIENT YOU WILL ALWAYS FIND OTHERS WHO CONCLUDE THAT IT'S ENOUGH TO GET BY FOR THE FEW YEARS THEIR CHILDREN WILL BE INFANTS AND TODDLERS ALTHOUGH EVERY FAMILY HAS THE RIGHT TO SET ITS OWN PRIORITIES IN THIS REGARD PLACING CHILD CARE COMPARATIVELY LOW ON ONE'S PERSONAL AGENDA DOES NOT BESTOW THE RIGHT TO INSIST THAT IT BE GRANTED A TOP SPOT ON THE NATION'S POLITICAL AGENDA OF COURSE IT WOULD BE GROSSLY UNFAIR TO CLASSIFY THE MAJORITY OF MIDDLE CLASS PARENTS PLEADING FOR DAY CARE AS SELFISH CHILD NEGLECTING SYBARITES BUT LET'S BE HONEST ABOUT THIS ECONOMICS OFTEN IS JUST A SMOKESCREEN IF EARNING A FEW BUCKS TO MAKE ENDS MEET WERE THE MAJOR MOTIVATION WE WOULD BE HEARING MUCH MORE ABOUT SUCH MEASURES AS PART TIME AND AT HOME JOBS FLEX TIME AND JOB SHARING THE REAL ISSUE UNDERLYING THE INCREASING DEMAND FOR DAY CARE IS EQUAL OPPORTUNITY FOR PARTICIPATION AND RECOGNITION IN THE WORKPLACE THERE IS NOTHING WRONG WITH SOMEONE FEELING THAT THE REWARDS OF CHILD REARING CAN'T COMPLETELY COMPENSATE FOR MAJOR SACRIFICES IN PROFESSIONAL FULFILLMENT AND CAREER ADVANCEMENT BUT MORE DAY CARE IS A BAD ANSWER THE REAL SOLUTION IS TWOFOLD FIRST SOCIETY MUST BE PERSUADED TO RECOGNIZE THE VALUE OF PARENTING BOTH FOR THE NATION AS A WHOLE AND FOR INDIVIDUAL DEVELOPMENT AFTER ALL WE HAVE A STRONG TRADITION OF RESPECTING AND REWARDING MILITARY SERVICE THOSE WHO HAVE SPENT A FEW YEARS IN THE ARMED FORCES AS WELL AS THOSE WHO TAKE REGULAR TIME OFF TO MEET RESERVE AND NATIONAL GUARD OBLIGATIONS ARE GIVEN OUR GRATITUDE AND WHEN IT COMES TO EMPLOYMENT AND PROMOTION POLICIES THEY ARE GIVEN AMPLE CREDIT FOR THE MANAGEMENT SKILLS ORGANIZATIONAL ABILITIES SELF DISCIPLINE AND OTHER ATTRIBUTES IT IS ASSUMED THEY HAVE GLEANED FROM THE EXPERIENCE NURTURING OUR CITIZENS OF THE FUTURE IS NO LESS CRITICAL THAN PROTECTING OUR BORDERS AND THE LESSONS LEARNED ARE NO LESS RELEVANT TO THE WORKPLACE THERE IS NO REASON WHY PEOPLE WHO HAVE DEVOTED SOME PORTION OF THEIR LIVES TO THIS ESSENTIAL TASK SHOULD NOT BE HELD IN AT LEAST AS MUCH ESTEEM AS SOLDIERS AND SAILORS SECOND ANY AND ALL QUESTIONS REGARDING CHILD CARE ROLES AND RESPONSIBILITIES MUST BE MOVED FROM THE EXCLUSIVE REALM OF MOTHERHOOD WOMEN WILL NEVER ACHIEVE EQUALITY AND PEACE OF MIND IN THE WORKPLACE UNTIL FATHERS ARE FORCED TO BEAR AN EQUAL BURDEN AT HOME AS LONG AS THIS REMAINS STRICTLY A WOMEN'S ISSUE WE WILL ALWAYS BE DEALING WITH INHERENTLY IMPERFECT ALTERNATIVES THOSE PUSHING FOR THE SIMULTANEOUS EXPANSION AND IMPROVEMENT OF DAY CARE SERVICES SAY THAT SOCIETY IN GENERAL AND MEN IN PARTICULAR WILL NEVER ACCEPT THESE ATTITUDE ADJUSTMENTS SADLY MANY OF THEM ARE THE SAME PEOPLE WHO TWENTY OR THIRTY YEARS AGO LAUGHED DEFIANTLY WHEN THEY WERE TOLD THAT THE SOUTH WOULD NEVER BE DESEGREGATED THAT STUDENT PROTESTS WOULD NEVER STOP A WAR AND THAT LITTLE GIRLS WOULD NEVER GROW UP TO BE DOCTORS LAWYERS ENGINEERS ENTREPRENEURS PLUMBERS AND COAL MINERS LET'S STOP FOOLING OURSELVES AND REALLY FACE THE FACTS WE HAVE COME A LONG WAY IN THE PAST TWO OR THREE DECADES BUT WE'VE MADE ONLY A HALF TURN TOWARD A FULL REVOLUTION JUST ASK THE DEDICATED DAY CARE PERSONNEL CURRENTLY LABORING AT SLIGHTLY ABOVE MINIMUM WAGE TO COPE WITH EVER GREATER NUMBERS OF INFANTS AND TODDLERS MR. MEYERHOFF IS THE EXECUTIVE DIRECTOR OF THE EPICENTER INCORPORATED A FAMILY ADVISORY AND ADVOCACY AGENCY BASED IN WELLESLEY HILLS MASSACHUSETTS POLITICAL FEARS SPARKED BY THE UPRISING IN CHIAPAS IN SOUTHERN MEXICO CONTINUED TO DEPRESS THE PRICES OF DEVELOPING NATION BONDS YESTERDAY ALTHOUGH THE UPRISING BEGAN MORE THAN THREE WEEKS AGO AND THE SITUATION APPEARS TO BE UNDER CONTROL IN MEXICO INVESTORS HAVE BEGUN TO LOOK MORE CLOSELY AT POTENTIAL AND ACTUAL POLITICAL CRISES IN OTHER DEVELOPING NATIONS SUCH AS VENEZUELA THE RESULT HAS BEEN THE ONSET OF A BEARISH SENTIMENT IN THE MARKET FOR THESE HIGH YIELDING BONDS THE PRICES OF U. S. TREASURYS DROPPED AS WELL THOUGH NOT AS SHARPLY THE BENCHMARK THIRTY YEAR TREASURY BOND LOST MORE THAN ONE QUARTER POINT OR MORE THAN TWO DOLLARS AND FIFTY CENTS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO END AT NINETY NINE AND SEVEN THIRTY SECONDS ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO SIX POINT THREE OH PERCENT FROM SIX POINT TWO EIGHT PERCENT ON FRIDAY PRICES OF BRADY BONDS AND MOST DEVELOPING NATION LOANS DROPPED FOR THE FOURTH CONSECUTIVE SESSION YESTERDAY AS TRADERS AND SOME INVESTORS RUSHED TO TAKE DEFENSIVE POSITIONS IN CASE THE BEARISH SENTIMENT PUSHES THE MARKET EVEN LOWER BRADY BONDS ARE SECURITIES ISSUED BY GOVERNMENTS AS PART OF A FOREIGN DEBT RESTRUCTURING PROGRAM DESIGNED BY FORMER U. S. TREASURY SECRETARY NICHOLAS BRADY SINCE THEY ARE SOVEREIGN DEBT AND TEND TO BE VERY LIQUID BRADY BONDS ARE A GOOD BENCHMARK FOR A NATION'S BONDS A NUMBER OF MAJOR DEVELOPING NATIONS' BONDS LOST A POINT OR MORE INCLUDING BRADY BONDS OF MEXICO VENEZUELA ARGENTINA AND BRAZIL THE DECLINES LATER SPILLED OVER INTO THE MARKET FOR DEFAULTED GOVERNMENT LOAN PAPER THE SPILL OVER PROMPTED A FEW TRADERS TO QUESTION WHETHER THE ENTIRE DEVELOPING NATION SOVEREIGN DEBT MARKET IS ACTUALLY MORE INTERDEPENDENT THAN THEY HAD THOUGHT QUOTE IN PART THE LINKAGE BETWEEN SEEMINGLY UNCONNECTED ASSETS IS DUE TO THE FACT THAT THIS MARKET IS STILL VERY YOUNG QUOTE ONE TRADER SAID WHILE A DROP IN OIL PRICES CAN BE EXPECTED TO AFFECT NIGERIA AND VENEZUELA IT'S HARDER TO UNDERSTAND HOW A BANKING CRISIS IN VENEZUELA COULD END UP HURTING MEXICO HE SAID ONE EXPLANATION MAY BE THAT SINGLE INVESTORS AND TRADERS ARE OFTEN ACTIVE IN A WIDE ARRAY OF ASSETS REQUIRING THEM TO BE AS FLUENT IN THE ECONOMIC RESTRUCTURING OF A COUNTRY SUCH AS ECUADOR AS THEY ARE IN THE POLITICAL MANEUVERING OF THE FORMER SOVIET UNION IN THE MINDS OF SOME INVESTORS A SUDDEN DROP IN VNESHEKONOMBANK LOANS OF THE FORMER SOVIET UNION CAN BE MADE UP BY PROFIT TAKING IN MEXICAN BRADY BONDS SAID ANOTHER TRADER ANOTHER EXPLANATION MAY BE WORRIES ABOUT LOOMING POLITICAL PROBLEMS LUIS R. LUIS PORTFOLIO MANAGER AT SCUDDER STEVENS AND CLARK INCORPORATED A BOSTON MUTUAL FUND CONCERN SAID THE UPRISING MAY IN FACT PROVE AS IMPORTANT TO MEXICO'S POLITICAL HISTORY AS THE MEXICAN REVOLUTION MEXICO IS IN NEW POLITICAL WATERS MR. LUIS SAID CHIAPAS MORE THAN NAFTA IS GOING TO FORCE MEXICAN POLITICIANS TO CHANGE THEIR ATTITUDES AND POLICIES AND DIRECT THEM TOWARD FISCAL TYPE OF SOLUTIONS MEXICO IS WELL AWARE IT HAS TO IMPROVE ITS POOR HUMAN RIGHTS REPUTATION MR. LUIS ADDED AMONG SPECIFIC BRADY BONDS MEXICAN DISCOUNT BRADY BONDS FELL ONE AND ONE HALF POINTS OR FIFTEEN DOLLARS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO NINETY ONE POINT EIGHT SEVEN FIVE AS INVESTORS WAITED TO SEE WHETHER THE GOVERNMENT'S ATTEMPTS TO MEDIATE A PEACEFUL RESOLUTION TO THE CHIAPAS UPRISING WOULD SUCCEED THE DISCOUNT BONDS ARE SO NAMED BECAUSE THEY HAVE BEEN CONVERTED FROM OLD FOREIGN DEBT AT A DISCOUNT TO FACE VALUE VENEZUELAN GOVERNMENT DEBT ALSO DROPPED TODAY WITH ITS PAR BRADY BONDS DOWN TWO AND THREE EIGHTHS POINTS OR TWENTY THREE DOLLARS AND SEVENTY FIVE CENTS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO SIXTY EIGHT POINT SIX TWO THE PAR BONDS HAVE BEEN CONVERTED FROM OLD FOREIGN DEBT AT FACE VALUE THE COUNTRY'S FISCAL PROBLEMS ARE SAD SAID ONE TRADER WHO JUST RETURNED FROM CARACAS VENEZUELA'S CAPITAL QUOTE IT HAS GOT A REVENUE COLLECTION PROBLEM TIED TO A WORK ETHIC PROBLEM QUOTE HE SAID THE COUNTRY GOT RICH QUICKLY IN THE NINETEEN SEVENTIES WITH THE RISE IN OIL PRICES BUT NOW THAT OIL IS COMING BACK DOWN THE COUNTRY HAS GOTTEN LAZY HIGHER INFLATION WELL SUBSIDIZED GASOLINE PRICES AND CONTINUED CONCERNS OVER THE POPULIST IDEOLOGICAL SLANT OF PRESIDENT ELECT RAFAEL CALDERA CONTINUE TO WEIGH ON VENEZUELA DEBT PRICES AS WELL TRADERS SAID MR. CALDERA HAS CALLED FOR THE SUSPENSION OF THE COUNTRY'S VALUE ADDED TAX WHICH COULD HAVE A STRONG EFFECT ON THE COUNTRY'S FISCAL HEALTH AMONG THE OTHER BRADYS ARGENTINE DISCOUNT BONDS SLID ONE HALF POINT TO EIGHTY SIX POINT TWO FIVE WHILE BRAZIL IDU BONDS DROPPED ONE AND ONE QUARTER POINTS TO EIGHTY FOUR POINT FIVE IDU WHICH STANDS FOR INTEREST DUE AND UNPAID IS A SECURITY CREATED FROM BRAZIL'S UNPAID INTEREST ON FOREIGN DEBT CONCERNS ABOUT PROBLEMS AT HANWA COMPANY THE TROUBLED JAPANESE METAL TRADING FIRM COULD PROMPT SELLING OF MANY OF THE MOST LIQUID BRADY BONDS BY JAPANESE INVESTORS SAID JAMES SWANSON A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL SERVICES HANWA IS BELIEVED TO HAVE LARGE POSITIONS IN BRADY BONDS OF SEVERAL NATIONS HOWEVER ONE THING THAT MAKES ME THINK WE WON'T HAVE A TRUE BEAR MARKET IS THAT THERE IS STILL A MANIA FOR YIELD SAID MR. SWANSON IT'S STILL TOO SOON TO START SHORTING THE MARKET HE SAID BUT COMPARED WITH THE RECENT PERFORMANCE OF THE BOND MARKETS OF INDUSTRIALIZED NATIONS THE DEVELOPING NATION BOND MARKET IS QUOTE STILL DOING FINE QUOTE HE EXPLAINED THE PRICES OF DEFAULTED GOVERNMENT LOANS ALSO ENDED LOWER ECUADOR MYRAS FELL TWO POINTS TO FORTY SIX POINT FIVE WHILE PANAMA REFINANCING LOANS SANK TWO AND ONE EIGHTH TO SIXTY NINE POINT TWO FIVE MEANWHILE THE DEBT OF THE FORMER SOVIET UNION DROPPED FIVE POINTS TO THIRTY EIGHT IT REMAINED UNCLEAR WHETHER FINANCE MINISTER BORIS FYODOROV WOULD CONTINUE IN HIS POSITION MR. FYODOROV MET TODAY WITH INTERPRIVATIZATION FUND PRESIDENT VLADIMIR SHCHERBAKOV THE INTERFAX NEWS AGENCY REPORTED LEADING SOME RUSSIA WATCHERS TO SPECULATE THAT MR. SHCHERBAKOV IS BIDDING FOR THE OPEN FINANCE MINISTER SLOT DURING THE MEETING MR. SHCHERBAKOV TRIED TO PERSUADE MR. FYODOROV TO REMAIN IN THE GOVERNMENT INTERFAX SAID MEANWHILE NEW CANADIAN BONDS SWAMPED THE U. S. CORPORATE BOND MARKET YESTERDAY AS ONTARIO SOLD ONE POINT TWO FIVE BILLION CANADIAN DOLLARS NINE HUNDRED FIFTY THREE MILLION U. S. DOLLARS OF THIRTY YEAR GLOBAL BONDS THE DEAL COMES ON THE HEELS OF CANADIAN DENOMINATED DEALS FROM HYDRO QUEBEC WHICH SOLD ONE BILLION CANADIAN DOLLARS OF TEN YEAR GLOBAL BONDS AND ROGERS CABLESYSTEMS LIMITED WHICH SOLD THREE HUNDRED MILLION CANADIAN DOLLARS OF JUNK BONDS GLOBAL BONDS ARE DESIGNED TO BE SOLD AND TRADED IN ALL THE WORLD'S MAJOR MARKETS OTHERWISE THE NEW ISSUE MARKET WAS EXTREMELY QUIET GENERAL MOTORS CORPORATION'S GENERAL MOTORS ACCEPTANCE CORPORATION SOLD THREE HUNDRED MILLION DOLLARS OF FIVE YEAR NOTES WHILE IMPERIAL CREDIT INDUSTRIES INCORPORATED SOLD NINETY MILLION DOLLARS OF TEN YEAR JUNK BONDS TRADING IN THE U. S. INVESTMENT GRADE CORPORATE BOND MARKET WAS LIGHT WITH PRICES DOWN SLIGHTLY FOLLOWING U. S. TREASURYS THE EXTREMELY LIGHT ACTIVITY IN THE JUNK BOND MARKET LEFT PRICES UNCHANGED MANY INVESTORS WILL ATTEND HIGH YIELD CONFERENCES SPONSORED EARLY IN THE WEEK BY SALOMON BROTHERS INCORPORATED AND LATER IN THE WEEK BY KIDDER PEABODY AND COMPANY ONTARIO'S GLOBAL BONDS WERE PRICED AT NINETY EIGHT POINT FOUR TWO WITH A SEVEN POINT FIVE PERCENT COUPON TO YIELD SEVEN POINT SIX THREE FIVE PERCENT A LOWER THAN EXPECTED ZERO POINT FIVE THREE PERCENTAGE POINT OVER THE GOVERNMENT OF CANADA'S THIRTY YEAR BOND THE SPREAD IS THE DIFFERENCE BETWEEN THE YIELD ON THE ISSUER'S BOND AND THE YIELD OF THE GOVERNMENT ISSUED DEBT BY LATE YESTERDAY THE PRICE OF THE BOND HAD DROPPED ZERO POINT FOUR TWO POINT OR ABOUT FOUR DOLLARS AND TWENTY CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY EIGHT THE YIELD ROSE TO SEVEN POINT SIX SEVEN PERCENT THE DEAL WAS PRIMARILY PLACED WITH U. S. AND CANADIAN INVESTORS THROUGH JOINTLEAD MANAGERS GOLDMAN SACHS INTERNATIONAL LIMITED NESBITT THOMSON LIMITED AND SCOTIA MCLEOD INCORPORATED EXPECTING THAT THEY WOULD HAVE MORE THAN ENOUGH TO DO IN THE NEXT SEVERAL DAYS MOST TREASURY PLAYERS WERE LYING LOW YESTERDAY THE BENCHMARK THIRTY YEAR BOND DROPPED MORE THAN ONE QUARTER POINT OTHER SECURITIES POSTED SMALLER LOSSES THE TEN YEAR NOTE FOR EXAMPLE DROPPED LESS THAN ONE QUARTER POINT TO ONE HUNDRED AND EIGHT THIRTY SECONDS TO YIELD FIVE POINT SEVEN OH PERCENT COMPARED WITH FIVE POINT SIX EIGHT PERCENT ON FRIDAY WITH TWENTY NINE BILLION DOLLARS OF TWO YEAR AND FIVE YEAR U. S. TREASURY NOTES TO BE SOLD TODAY AND TOMORROW RESPECTIVELY AND THE GOVERNMENT'S RELEASE OF FOURTH QUARTER GROSS DOMESTIC PRODUCT DATA DUE FRIDAY INVESTORS AND TRADERS DIDN'T WANT TO TAKE ON NEW POSITIONS YESTERDAY IN WHEN ISSUED TRADING THE TWO YEAR NOTE YIELDED FOUR POINT ONE ONE PERCENT LATE YESTERDAY WHILE THE FIVE YEAR NOTE YIELDED FIVE POINT OH SEVEN PERCENT NEXT WEEK THE TREASURY LAYS OUT DETAILS OF ITS QUARTERLY REFUNDING PACKAGE IN WHICH IT SELLS NEW ISSUES TO PAY OFF MATURING ISSUES THAT PACKAGE WILL INCLUDE A NEW THIRTY YEAR BOND 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 THREE HUNDRED SIXTY DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A THREE HUNDRED SIXTY FIVE DAY YEAR BOTH ISSUES ARE DATED JANUARY TWENTY SEVENTH THE THIRTEEN WEEK BILLS MATURE APRIL TWENTY EIGHTH NINETEEN NINETY FOUR AND THE TWENTY SIX WEEK BILLS MATURE JULY TWENTY EIGHTH NINETEEN NINETY FOUR MUNICIPAL BONDS ENDED WHERE THEY OPENED YESTERDAY LITTLE CHANGED AND NARROWLY MIXED WITH NEW ISSUANCE ONLY SLIGHTLY MORE ACTIVE THAN SECONDARY DEALINGS THE FOCUS TURNED TO ABSORBING THE SPATE OF NEW DEALS ALREADY PRICED THIS YEAR AND TO THE WEEK'S TWO LARGEST DEALS WHICH ARE EXPECTED TODAY THIS WEEK'S CALENDAR IS COMPARATIVELY LIGHT THE BULK OF IT IS ANTICIPATED TODAY WITH THE NEGOTIATED PRICINGS OF SEVEN HUNDRED FIFTY MILLION DOLLARS SAN ANTONIO ELECTRIC AND GAS SYSTEM REVENUE REFUNDING BONDS AND SIX HUNDRED SIXTY MILLION DOLLARS WASHINGTON PUBLIC POWER SUPPLY SYSTEM REFUNDING BONDS YESTERDAY'S ONE LARGE OFFERING WAS THE ONE HUNDRED SEVENTEEN POINT NINE MILLION DOLLARS OF COLORADO SPRINGS COLORADO UTILITY SYSTEM IMPROVEMENT AND REFUNDING BONDS A PRUDENTIAL SECURITIES INCORPORATED GROUP WHICH WON THE DOUBLE A RATED BONDS IN COMPETITIVE BIDDING SET SERIAL BOND YIELDS TO RANGE FROM THREE POINT TWO FIVE PERCENT IN NINETEEN NINETY SIX TO FIVE POINT TWO TWO PERCENT IN TWO THOUSAND NINETEEN THE FORTY EIGHT POINT ONE SIX MILLION DOLLARS FIVE AND ONE EIGHTH PERCENT TERM BONDS DUE TWO THOUSAND TWENTY THREE WEREN'T PUBLICLY REOFFERED IN SECONDARY TRADING THE REEDY CREEK IMPROVEMENT DISTRICT'S FIVE PERCENT BONDS DUE TWO THOUSAND NINETEEN ROSE ONE EIGHTH POINT TO NINETY FIVE AND THREE EIGHTHS TO YIELD FIVE POINT THREE OH PERCENT THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S FIVE AND ONE HALF PERCENT BONDS DUE TWO THOUSAND FOURTEEN WERE UNCHANGED AT NINETY NINE YIELDING FIVE POINT THREE ONE PERCENT CITICORP'S CITIBANK TOOK ADVANTAGE OF STRONG DEMAND FOR CREDIT CARD SECURITIES BRINGING A SEVEN HUNDRED NINETY EIGHT MILLION DOLLAR GLOBAL OFFERING AT LOW COST THE LARGEST PART OF THE TRANSACTION THE SEVEN HUNDRED FIFTY MILLION DOLLARS SENIOR CLASS WAS PRICED WITH A FOUR POINT SIX FIVE PERCENT COUPON AT NINETY NINE POINT EIGHT FIVE EIGHT TO YIELD FOUR POINT SEVEN OH PERCENT THAT WAS ONLY ZERO POINT THREE FIVE FOUR POINT ABOVE THE TREASURY'S FOUR AND THREE EIGHTHS PERCENT NOTES DUE NOVEMBER NINETEEN NINETY SIX THE ISSUE HAS AN AVERAGE LIFE OF THREE YEARS CITIBANK COULDN'T HAVE CHOSEN A BETTER MOMENT FOR AN AGGRESSIVELY PRICED TRANSACTION INVESTORS FLUSH WITH CASH HAVE BEEN CLAMORING FOR SOMEWHAT SCARCE CREDIT CARD PAPER CHARLES WAINEHOUSE TREASURER OF THE CREDIT CARD PRODUCTS DIVISION OF CITIBANK NOTED THAT THE DEAL WAS STILL TRADING NEAR ITS PRICING LEVEL AFTER BEING FREED TO TRADE HE CALLED THAT A NEAT VALIDATION OF THE DEAL'S EXECUTION MEANWHILE MORTGAGE BACKED SECURITIES DRIFTED THROUGH AN UNEVENTFUL SESSION TO END LARGELY UNCHANGED GINNIE MAE SIX POINT FIVE PERCENT SECURITIES FOR FEBRUARY DELIVERY ROSE ONE THIRTY SECOND TO ONE HUNDRED AND THREE THIRTY SECONDS FREDDIE MAC GOLD SIX POINT FIVE PERCENT SECURITIES WERE UNCHANGED AT ONE HUNDRED AND SIX THIRTY SECONDS AND FANNIE MAE SIX POINT FIVE PERCENT SECURITIES WERE UNCHANGED AT ONE HUNDRED STILL MORTGAGES ARE TRADING AT LOFTY LEVELS WITH YIELDS OF MOST SECTORS OF THE PASS THROUGH MARKET AT HISTORICALLY TIGHT SPREADS OVER THE YIELDS OF THEIR TREASURY COUNTERPARTS PERHAPS THE MOST REMARKABLE THING ABOUT COMMUNITARIAN AMITAI ETZIONI'S DECEMBER THIRTY FIRST EDITORIAL PAGE PIECE QUOTE HOW OUR TOWNS FIGHT CRIME QUOTE IS THAT HE BLAMES ONE OF THE NATION'S MOST INTRACTABLE AND COMPLEX SOCIAL PROBLEMS ON ONE RELATIVELY SMALL NONPROFIT ORGANIZATION THE AMERICAN CIVIL LIBERTIES UNION THE NEXT MOST REMARKABLE THING IS THAT HE EXONERATES THROUGH OMISSION THE PEOPLE WHO BEAR THE GREATEST RESPONSIBILITY FOR OUR CRIME PROBLEM THE LOCAL STATE AND FEDERAL ELECTED OFFICIALS WHO FOR SO MANY YEARS HAVE EVADED THEIR RESPONSIBILITY TO COME UP WITH SOLUTIONS THAT WORK BY PANDERING TO THE PUBLIC'S FEARS AND PASSING LAWS THAT SOUND TOUGH BUT DO LITTLE TO REDUCE CRIME THE TRUTH AS MR. ETZIONI VERY WELL KNOWS IS THAT IF THE A. C. L. U. WERE TO FOLD TOMORROW THE CRIME RATE WOULD NOT DECREASE BY EVEN ONE TENTH OF A PERCENTAGE POINT MR. ETZIONI'S ARTICLE CONTAINS MANY MISSTATEMENTS OF A. C. L. U. POLICIES AND PRACTICES CONTRARY TO HIS CLAIMS THE A. C. L. U. HAS NEVER OPPOSED COMMUNITY CRIME WATCHES COMMUNITY ANTIDRUG PATROLS OR AIRPORT METAL DETECTORS WE ACTIVELY SUPPORT THE CONCEPT OF COMMUNITY POLICING THESE ACTIVITIES DO NOT RAISE SERIOUS CONSTITUTIONAL PROBLEMS AND THEY CAN UNDER SOME CIRCUMSTANCES EFFECTIVELY FIGHT CRIME BUT LET'S TAKE ONE OF MR. ETZIONI'S CRIME FIGHTING MEASURES THAT WE DO OPPOSE ROADBLOCKS TO APPREHEND DRUNK AND DRUG USING DRIVERS AS MANY LAW ENFORCEMENT PROFESSIONALS WILL TELL YOU ROADBLOCKS ARE A TERRIBLY INEFFECTIVE STRATEGY FOR APPREHENDING DRIVERS UNDER THE INFLUENCE OF DRUGS OR ALCOHOL IN OUR NINETEEN EIGHTY SIX CHALLENGE TO A MICHIGAN STATE POLICE SOBRIETY CHECKPOINT PROGRAM THREE MICHIGAN COUNTY SHERIFFS TESTIFIED THAT ROADBLOCKS WERE AN INEFFICIENT USE OF SCARCE POLICE RESOURCES AND THAT DEPLOYING POLICE OFFICERS ON ROVING PATROLS TO LOOK FOR SIGNS OF ERRATIC OR INTOXICATED DRIVERS IN OTHER WORDS TO LOOK FOR PROBABLE CAUSE WAS THE PREFERABLE LAW ENFORCEMENT STRATEGY THIS TESTIMONY REFLECTED THE VIEW OF THE MICHIGAN SHERIFFS' ASSOCIATION WHICH HAD VOTED TO OPPOSE SOBRIETY CHECKPOINTS THE MICHIGAN TRIAL COURT WAS PERSUADED AND FOUND THAT SOBRIETY CHECKPOINTS CAN BE USED TO EFFECTUATE ONLY AN EXTREMELY LOW NUMBER OF ARRESTS AND THEY HAVE NO POTENTIAL FOR A SUSTAINED DETERRENT EFFECT MR. ETZIONI ALSO BELITTLES THE FOURTH AMENDMENT PROBLEMS RAISED BY ROADBLOCKS AND CHECKPOINTS SUGGESTING THAT THEY ARE NO MORE INVASIVE THAN PASSING THROUGH A METAL DETECTOR AT AN AIRPORT PERHAPS HE HAS NEVER BEEN SUBJECTED TO ONE THE MICHIGAN PROGRAM THAT WAS STRUCK DOWN BY THE STATE COURTS REQUIRED THAT ALL VEHICLES PASSING THROUGH THE CHECKPOINT BE STOPPED EVERY DRIVER HAD TO SUBMIT TO AN EXAMINATION BY THE POLICE THAT INCLUDED THE FOLLOWING LOOKING AT THE DRIVER'S FACE AND EYES TO SEE WHETHER THEY WERE FLUSHED OR BLOODSHOT SMELLING THE DRIVER'S BREATH ENGAGING THE DRIVER IN CONVERSATION AND INSPECTING THE DRIVER'S SHIRT TO SEE WHETHER IT WAS UNBUTTONED ALL THIS WITHOUT ANY REASON TO SUSPECT ANY PARTICULAR PERSON OF WRONGDOING IF YOU HANG 'EM ALL YOU'LL GET THE GUILTY MR. ETZIONI SEEMS TO BELIEVE WELL WE BELIEVE OTHERWISE SO DID THE PEOPLE WHO FOUNDED THIS COUNTRY AND SO DO MOST THINKING AMERICANS TODAY SEVERAL YEARS AGO THE AMERICAN BAR ASSOCIATION PUBLISHED ITS REPORT CRIMINAL JUSTICE IN CRISIS IT WAS BASED ON HEARINGS IN THREE CITIES AND A NATIONAL SURVEY OF MORE THAN EIGHT HUNDRED PROSECUTORS DEFENSE LAWYERS JUDGES AND HIGH RANKING POLICE OFFICIALS ONE OF THE QUESTIONS POSED TO THE LAW ENFORCEMENT OFFICIALS WAS WHETHER THEY BELIEVED CONSTITUTIONAL RIGHTS LIKE THE EXCLUSIONARY RULE AND THE MIRANDA WARNINGS POSED AN OBSTACLE TO EFFECTIVE LAW ENFORCEMENT MOST OF THEM SAID NO THE A. B. A. CONCLUDED THAT TAKEN AS A WHOLE THE TESTIMONY AND THE SURVEY RESULTS DEMONSTRATE THAT CONSTITUTIONAL LIMITATIONS ARE NOT SEEN AS A RELATIVELY SIGNIFICANT PROBLEM BY THE PEOPLE WHO MUST WORK WITHIN THOSE LIMITATIONS MY HUSBAND AND I HAVE THE PRIVILEGE OF RAISING A CHILD WITH SEVERE MENTAL AND PHYSICAL IMPAIRMENTS IF YOU WERE TO ASK ME THE MOST DIFFICULT ASPECT OF REARING THIS UNIQUE LITTLE GIRL THE ANSWER WOULD NOT BE THE COUNTLESS HOSPITALIZATIONS THE EQUIPMENT DEMANDS THE SLEEPLESS NIGHTS OR THE TOO LONG STARES WHEN WE'RE IN PUBLIC IT WOULD BE THE GOVERNMENT BUREAUCRACIES WE FACE TO PROVIDE FOR HER PROTECT HER AND HELP HER TAP HER POTENTIAL AS I LISTEN TO HILLARY RODHAM CLINTON TOUT THE WONDERS OF A NATIONAL HEALTH CARE PLAN I WANT TO SAY QUOTE COME FOLLOW ME MRS. CLINTON I CAN SHOW YOU WHAT GOVERNMENT DOES TO THOSE IT SETS OUT TO HELP I WOULD BEGIN BY INTRODUCING MRS. CLINTON TO THE FIVE OR SO CASEWORKERS ASSIGNED TO OUR CLAIRE ONE IS FROM ARIZONA'S DEPARTMENT OF DEVELOPMENT DISABILITY ANOTHER IS WITH ARIZONA LONG TERM CARE ANOTHER IS WITH THE ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM ANOTHER IS WITH APIPA AND I DON'T KNOW WHAT THAT STANDS FOR I LOST TRACK OF ACRONYMS AGENCIES AND CASEWORKERS LONG AGO THESE CASEWORKERS ASSIGNED AS ADVOCATES FOR MY DAUGHTER'S NEEDS COME TO OUR HOUSE ONE BY ONE ONCE EACH YEAR TO CONDUCT TWO HOUR INTERVIEWS AND VERIFY IN PERSON THAT CLAIRE A CHILD WHO IS NOW SIX AND HAS NEVER SPOKEN HAS NOT BEEN THE RECIPIENT OF A MIRACLE CURE I DON'T KNOW WHAT THE CASEWORKERS DO BEYOND THIS INTERVIEW BUT TWO THINGS HAVE OCCURRED TO ME FIRST BURGLARS COULD JUST ARRIVE AT OUR DOOR WITH A LOT OF FORMS AND AN ACRONYM AND ANYONE IN THE HOUSEHOLD WOULD LET THEM IN SECOND THERE MUST BE YET ANOTHER CONTRIVED CONSTITUTIONAL PRIVACY RIGHT OR SOME INSIDER TRADING RULE THAT PROHIBITS STATE AND FEDERAL EMPLOYEES WHO WORK WITH THE SAME FAMILY FROM USING ONE FILE COMPARING NOTES SHARING INFORMATION OR EVEN CARPOOLING FOR INTERVIEWS MY FAVORITE INTERVIEW WAS LAST FALL WHEN A CASEWORKER WAS ASSIGNED TO RE DO HUNDREDS OF INTERVIEWS AS PART OF A NEW TOTAL QUALITY MANAGEMENT PROGRAM IF I COULD INTRODUCE MRS. CLINTON TO OUR FIVE CASEWORKERS I WOULD ASK HER TO POSE A HYPOTHETICAL QUESTION TO THEM ABOUT CLAIRE'S COVERAGE MRS. CLINTON WOULD GET FIVE TO EIGHT DIFFERENT ANSWERS THE EIGHT IS BECAUSE SOME OF THE CASEWORKERS WHO BUY INTO THE NEW TQM PROGRAM WOULD GO BEYOND THE CALL OF DUTY AND GIVE US TWO TO THREE WRONG POSSIBILITIES I WOULD THEN TAKE MRS. CLINTON INTO THE WORLD OF TITLE NINETEEN A FEDERAL BENEFITS PROGRAM ADMINISTERED BY THE STATE FOR CHILDREN UNDER NINETEEN WHO HAVE PERMANENT DISABILITIES THEORETICALLY TITLE NINETEEN MEANS SUMMER SCHOOL SWIMMING PROGRAMS RESPITE CARE THERAPY AND A HOST OF SERVICES THAT MAKE IT SOUND LIKE A LUXURY SPA REALITY IS QUITE ANOTHER STORY TITLE NINETEEN QUALIFIES CHILDREN ON THE BASIS OF NEED I. E. INCOME OR DEGREE OF DISABILITY CLAIRE QUALIFIED ON THE BASIS OF DISABILITY BUT WE ARE STILL REQUIRED ONCE EACH YEAR TO SUBMIT TO AN IN OFFICE INTERVIEW WITH YET ANOTHER CASEWORKER IN WHICH I MUST GIVE COPIES OF OUR CAR TITLES HOUSE DEED BANK ACCOUNT STATEMENTS W. TWOS AND THE LIKE A SAMPLE CASEWORKER COMMENT FROM ONE YEAR'S INTERVIEW I SEE YOU HAVE A NEW PIANO IN YOUR HOME CLAIRE DOESN'T PLAY THIS DOES SHE I HAD TO WONDER WHY SOMEONE LOOKING AT A CHILD WHO CAN'T SIT HOLD HER HEAD UP OR MAKE ANY DISCERNIBLE VOLUNTARY MOVEMENTS FELT COMPELLED TO ASK SUCH A QUESTION ONE YEAR WE MADE THE MONUMENTAL MISTAKE OF ADDING CLAIRE TO OUR CAR TITLE CLAIRE MUST BE ON THE CAR TITLE IN ARIZONA FOR US TO HAVE A HANDICAPPED LICENSE PLATE WHEN WE HAD ONLY A MOVEABLE PERMIT THAT WAS PLACED IN THE FRONT WINDOW PEOPLE YELLED AT US IN PARKING LOTS WITH OUR OFFICIAL PLATES WE WERE SAVED FROM SUCH GROCERY STORE SKIRMISHES BUT I HAD TO FACE THE GLARE OF A TITLE XIXER WHO SAID IS CLAIRE DRIVING THIS CAR I WAS REQUIRED TO SIGN A WITNESSED STATEMENT THAT SAID OUR CORTICALLY BLIND KINDERGARTNER DID NOT TAKE THE CHEVROLET SUBURBAN OUT FOR SPINS DURING OUR INCOME INTERVIEW LAST YEAR A CASEWORKER SPOTTED OUR MEDICAL EXPENSES THEY ARE OUR BIGGEST EXPENSE EVEN WITH INSURANCE EXCEEDING OUR HOUSE PAYMENTS AND FOOD COSTS EACH MONTH THE CASEWORKER ASKED WHY WOULD YOU PAY MEDICAL BILLS I NEVER KNOW ABOUT TRICK QUESTIONS IN BUREAUCRATIC TERRITORY SO I RESPONDED QUOTE BECAUSE WE OWE THEM QUOTE SHE THEN EXPLAINED THE FIRST GOVERNMENT EMPLOYEE IN FOUR YEARS TO SPOT THE ISSUE THAT TITLE NINETEEN COVERED ALL OF CLAIRE'S MEDICAL EXPENSES NOT COVERED BY OTHER INSURANCE I ASKED HOW COME NO ONE EVER TOLD ME THIS TO WHICH SHE RESPONDED BECAUSE THEY DIDN'T KNOW ONCE YOU'RE IN TITLE NINETEEN IT IS DISNEY'S SPACE MOUNTAIN DARK AND TWISTED IN NINETEEN NINETY TWO I BEGAN ASKING FOR SUMMER SCHOOL APPROVAL IN APRIL I RECEIVED APPROVAL ON JULY TWENTY SECOND THREE DAYS BEFORE SUMMER SCHOOL ENDED LAST YEAR I BEGAN THE SUMMER SCHOOL APPROVAL QUEST IN FEBRUARY I GOT IT IN APRIL BUT SOMEONE FORGOT TO PUT CLAIRE'S NAME ON THE REGISTRATION LIST I FOUND THIS OUT AFTER A TWO HOUR WAIT IN THE REGISTRATION LINE I PAID FOR SUMMER SCHOOL MYSELF AND HAVE SINCE LEARNED THE TERM REFUND IS NOT PART OF TITLE NINETEEN I BEGAN USING OUR NEWLY DISCOVERED TITLE NINETEEN MEDICAL BENEFITS IN AUGUST IN JUST SIX WEEKS I RECEIVED AUTHORIZATION FOR A NEW WHEELCHAIR AND A SCOLIOSIS JACKET IN OCTOBER I GOT A CALL FROM A CASEWORKER WHO INFORMED ME THAT CLAIRE'S TITLE NINETEEN BENEFITS WERE BEING TERMINATED AS OF THAT DAY HE HAD DISCOVERED ON THE FORMS THAT I FILL OUT FOR THE FINANCIAL INTERVIEW A ONE THOUSAND SIX HUNDRED DOLLAR BANK ACCOUNT FOR CLAIRE IT WAS A BURIAL ACCOUNT WITHIN THE ONE THOUSAND FIVE HUNDRED DOLLAR LIMIT ALLOWED BY STATUTE BUT IT HAD EARNED INTEREST CLAIRE HAD TOO MUCH INCOME I OFFERED TO CLOSE THE ACCOUNT TOO LATE HE SAID THEN HE ADDED BUT YOU CAN ALWAYS COME DOWN AND REAPPLY FOR TITLE NINETEEN IT TOOK ME SIX MONTHS TO GET QUALIFIED THE FIRST TIME I SHOULD HAVE US REINSTATED JUST IN TIME FOR SUMMER SCHOOL THIS YEAR I AM A LAWYER WHO TEACHES AND WRITES ABOUT ADMINISTRATIVE PROCESS YET THIS SYSTEM IS BEYOND MY EXPERTISE HOW DO PARENTS WITH LANGUAGE BARRIERS LITTLE OR NO KNOWLEDGE OF DUE PROCESS AND NONCOMPULSIVE PERSONALITIES COPE I CAN SHOW MRS. CLINTON THAT PROGRAMS LIKE HERS ALREADY EXIST I CAN SHOW HER THE PAPERWORK THE IDIOSYNCRATIC RULES THE INSENSITIVITY THE ILL TRAINED WORKERS AND A BUREAUCRACY AS DEEP AS THE MISSISSIPPI AT SAINT LOUIS I CAN SHOW HER A SYSTEM THAT MUCH LIKE HER PROPOSAL WAS INTENDED TO HELP THE REALITY IS THAT HELP RARELY MAKES IT TO OUR CLAIRE MS. JENNINGS IS A PROFESSOR OF LEGAL AND ETHICAL STUDIES IN THE COLLEGE OF BUSINESS AT ARIZONA STATE UNIVERSITY AND A COLUMNIST FOR THE ARIZONA REPUBLIC JAPAN'S EMBATTLED PRIME MINISTER MORIHIRO HOSOKAWA SOUGHT MONDAY TO SAVE HIS POLITICAL REFORM PACKAGE BY NEGOTIATING COMPROMISE WITH OPPONENTS PROSPECTS HOWEVER REMAINED DIM THE RULING COALITION AND THE OPPOSITION LIBERAL DEMOCRATIC PARTY SPENT MUCH OF THE DAY HAGGLING OVER THE GROUND RULES FOR THE FORMAL COMMITTEE MEETING NECESSARY TO RESUSCITATE THE DYING LEGISLATION AS OF MONDAY NIGHT NO AGREEMENT HAD BEEN REACHED AND SUCH A SESSION WOULD LIKELY OPEN WEDNESDAY AT THE EARLIEST EVEN IF SUCH A MEETING DOES TAKE PLACE SOME L. D. P. LEADERS SAID OPENLY IT WOULD LIKELY FAIL TO PRODUCE ANY COMPROMISE MR. HOSOKAWA'S PROMISE TO ENACT SWEEPING ELECTORAL REFORMS BEFORE THE CURRENT PARLIAMENT SESSION ENDS SATURDAY SUFFERED A SEVERE BLOW LAST WEEK WHEN THE UPPER HOUSE OF PARLIAMENT VOTED DOWN THE PACKAGE IF HE FAILS HE MAY BE FORCED TO RESIGN OR CALL SNAP ELECTIONS THE CRISIS HAS TRIGGERED FEARS OF A DEBILITATING POLITICAL VACUUM AT AN INOPPORTUNE TIME THE ECONOMY IS STALLED AND RESCUE MEASURES HAVE BEEN STUCK WHILE POLITICIANS FIGHT OVER THE ANTICORRUPTION AND REDISTRICTING BILLS MR. HOSOKAWA IS SCHEDULED TO MEET PRESIDENT CLINTON FOR TRADE TALKS IN WASHINGTON IN THREE WEEKS HIS ABILITY TO DELIVER THE EXPECTED AGREEMENTS COULD BE IMPAIRED PANICKED INVESTORS FORCED THE NIKKEI STOCK INDEX DOWN MORE THAN NINE HUNDRED FIFTY POINTS MONDAY SOME POLITICIANS HOPING TO CONTAIN THE FALLOUT SAID MR. HOSOKAWA SHOULD STAY IN OFFICE QUOTE THIS CHAOS IS ALREADY DRAWING WORLD ATTENTION QUOTE SAID KOKEN NOSAKA A LEADER OF THE SOCIALIST PARTY THE LARGEST PARTY IN THE COALITION BUT ONE THAT IS DEEPLY DIVIDED OVER THE REFORMS FURTHER DETERIORATION WOULD BE UNDESIRABLE THE POPULAR MR. HOSOKAWA SEEMED TO DRAW CONTINUED SUPPORT FROM MANY VOTERS DESPITE HIS TROUBLES POLITICAL REFORM IS WHAT THE PEOPLE WISH SO I HOPE HE WON'T THROW IT AWAY HALFWAY MITSUAKI MIZUNO A GOVERNMENT EMPLOYEE SAID MONDAY BOARDING A SUBWAY TO STEP DOWN WOULDN'T BE RIGHT SACHIKO NARITA A TOKYO LIFE INSURANCE SALESWOMAN CONCURRED SAYING HOSOKAWA SAN ISN'T THE ONLY ONE TO BE BLAMED BESIDES SHE ADDED WHOEVER REPLACES HIM WOULD MAKE NO DIFFERENCE THE REFORM BILLS LOST LAST WEEK'S VOTE BECAUSE A LARGE BLOC OF SOCIALISTS DEFIED THEIR LEADERS AND VOTED AGAINST THE PACKAGE NOW MANY COALITION MEMBERS SAY THEY ARE WILLING TO AMEND THE BILLS TO SATISFY THE OPPOSITION L. D. P. EVEN THOUGH THE CHANGES WOULD RISK LOSING EVEN MORE SOCIALIST SUPPORT SPECIFICALLY THE L. D. P. WANTS TO WEAKEN THE PROVISIONS LIMITING BUSINESS DONATIONS TO POLITICIANS AND TO CHANGE THE COMPOSITION OF THE NEW ELECTORAL SYSTEM IN A WAY BELIEVED MORE FAVORABLE TO THE L. D. P. NON SOCIALIST COALITION MEMBERS SAY ANY REFORM PACKAGE EVEN A WEAKENED VERSION WOULD BE BETTER THAN NONE TO STRIKE A DEAL THE COALITION NOW WANTS TO FORM A COMMITTEE SPLIT EVENLY BETWEEN REPRESENTATIVES OF THE UPPER HOUSE AND THE LOWER HOUSE THE LATTER PASSED THE BILLS IN NOVEMBER IF TWO THIRDS OF THE COMMITTEE MEMBERS CAN AGREE ON AN AMENDED VERSION THEN THE BILLS WOULD BE SENT BACK TO THE TWO HOUSES REQUIRING MAJORITY SUPPORT IN BOTH WHILE THE L. D. P. LEADERSHIP HAS BEEN LUKEWARM ON ANY SORT OF REFORM A LARGE GROUP OF PARTY MEMBERS SAY THEY WANT IT MR. HOSOKAWA IS HOPING THAT BY PUTTING THE ISSUE TO ONE FINAL TEST HE CAN DRAW THEIR SUPPORT THE L. D. P. LEADERSHIP QUOTE RISKS LOSING THE L. D. P. AS A UNIFIED PARTY IF THEY DON'T COOPERATE QUOTE WITH MR. HOSOKAWA SAID JESPER KOLL AN ECONOMIST AT S. G. WARBURG IN TOKYO AND AN AIDE TO A PRO REFORM L. D. P. POLITICIAN BUT THE THICK SLIMY GOO THAT ABOUNDS IN GREASE TRAPS SAY POLICE WHEN THERE'S NO ONE TO WITNESS THE SIGHT THEY'LL PUMP OUT THE GREASE BY THE TON AND THE POUND WHEN THESE OUTLAWS BY TRUCK HAUL THEIR BOOTY AWAY IN NORTH HOUSTON GETS SPLATTERED WITH LARD BY THESE BUMS IT'S GOT USES GALORE ARE WORTH FIFTEEN CENTS PER THE POUND TO THE BUYERS ON THE RUES OF NEW ORLEANS IN FACT TOO THEY DO IT IT'S A CRIME NO ONE TAKES VERY SERIOUSLY WHEN THIS WINTER THEY STOLE SIXTEEN TONS IN A WEEK FOR THE COPS STAKED THEM OUT AND CAUGHT THEM RED HANDED BUT THEIR QUARRY MADE SURE THAT THIS TIME THEY WERE HUNTED INSISTING THAT SOMEBODY HELP RIGHT THIS WRONG IT'S THE SQUEAKIEST WHEEL THAT FIRST GETS THE GREASE CAPPING A BLOCKBUSTER YEAR IN THE BROKERAGE BUSINESS THREE OF THE NATION'S LARGEST SECURITIES FIRMS REPORTED SHARPLY HIGHER PROFITS FOR THE FOURTH QUARTER AND FULL YEAR BUT DESPITE UNEXPECTEDLY HUGE COMMISSION REVENUES AND STRONG SEASONAL TRADING PROFITS THE RESULTS DIDN'T WOW WALL STREET MANY BROKERAGE INDUSTRY STOCKS FELL ON THE NEWS THAT'S BECAUSE OF DARK CLOUDS GATHERING ON THE HORIZON SOME ANALYSTS CONTEND EVEN A MODEST UPTICK IN INTEREST RATES COULD MAKE NINETEEN NINETY THREE'S RESULTS THE LAST GASP OF WALL STREET'S THREE YEAR OLD BOOM IN SECURITIES UNDERWRITING MERRILL LYNCH AND COMPANY THE NATION'S LARGEST BROKER AND A BAROMETER FOR THE INDUSTRY REPORTED A FIFTY SEVEN PERCENT JUMP IN FOURTH QUARTER EARNINGS AND RECORD NINETEEN NINETY THREE NET INCOME OF ONE POINT THREE SIX BILLION DOLLARS THE FIRM'S REVENUE FOR THE FULL YEAR SURGED IN ALMOST EVERY CATEGORY TO A RECORD SIXTEEN POINT FIVE NINE BILLION DOLLARS ALSO REPORTING ROBUST RESULTS WERE PAINEWEBBER INCORPORATED AND TRAVELERS INCORPORATED PARENT OF SMITH BARNEY SHEARSON INCORPORATED SIMILAR RESULTS ARE EXPECTED TO FOLLOW IN COMING WEEKS FROM OTHER BROKERS LOW INTEREST RATES POWERED THE PROFITS SURGE U. S. CORPORATIONS ARE BOLSTERING THEIR BALANCE SHEETS BY SELLING STOCK PAYING DOWN BIG CHUNKS OF THEIR DEBT AND REFINANCING MUCH OF THE REST AT HISTORICALLY ATTRACTIVE INTEREST RATES MEANWHILE MORE INDIVIDUAL INVESTORS ARE TURNING TO STOCKS TO BOLSTER THEIR PORTFOLIOS' RETURNS QUOTE YOU WOULD SEE AN END TO THE MOMENTUM IF INTEREST RATES WENT UP A POINT QUOTE PREDICTS GUY MOSZKOWSKI ANALYST AT SANFORD C. BERNSTEIN AND COMPANY INDUSTRY ANALYSTS ARE EXPECTING THE BROKERAGE INDUSTRY'S COMBINED NINETEEN NINETY FOUR EARNINGS TO FALL ABOUT TEN PERCENT TO FIFTEEN PERCENT BELOW NINETEEN NINETY THREE LEVELS BASED ON FOURTH QUARTER RESULTS THE BLOOM IS NOT OFF THE ROSE SAYS JAMES HANBURY ANALYST AT WERTHEIM SCHRODER AND COMPANY BUT HE ADDS IF YOU LOOK AT THE STOCKS IT'S ANOTHER MATTER BUYERS APPARENTLY HAVE ANTICIPATED ALL OF THE INDUSTRY'S GOOD NEWS THE DOW JONES INDEX OF THE BROKERAGE INDUSTRY GROUP PEAKED IN LATE SUMMER OF LAST YEAR BUT SECURITIES INDUSTRIES OFFICIALS NOTE THAT ANALYSTS HAVE BEEN WARNING FOR MONTHS THAT THE SKY IS ABOUT TO FALL AND YET THE BROAD BASED BOOM CONTINUES AS DOES THE FLOW OF MONEY TO WALL STREET AT PAINEWEBBER WHERE FOURTH QUARTER NET SURGED THIRTY SEVEN PERCENT ABOVE THE YEAR EARLIER LEVEL DONALD MARRON CHAIRMAN SAID THE INCREASE WAS NOT DEPENDENT ON ANY SINGLE BUSINESS OR ANY SINGLE ACTIVITY FEES FROM THE FIRM'S ASSET MANAGEMENT BUSINESS WHICH IS SOMEWHAT INSULATED FROM INTEREST RATE CLIMBS WERE HIGH ENOUGH TO COVER FIFTY PERCENT OF OUR FIXED COSTS MERRILL SAID FOURTH QUARTER NET WAS THREE HUNDRED FORTY SEVEN POINT TWO MILLION DOLLARS OR ONE DOLLAR AND FIFTY THREE CENTS A SHARE COMPARED WITH TWO HUNDRED TWENTY ONE POINT FOUR MILLION DOLLARS OR NINETY NINE CENTS A SHARE A YEAR EARLIER MERRILL'S NINETEEN NINETY THREE EARNINGS INCLUDED AN ACCOUNTING CHANGE THAT REDUCED THE FIRM'S NET BY THIRTY FIVE POINT FOUR MILLION DOLLARS BEFORE THE ACCOUNTING CHANGE WHICH RELATED TO THE ADOPTION OF NEW ACCOUNTING TREATMENTS FOR EMPLOYEE RETIREMENT BENEFITS AND SECURITIES NINETEEN NINETY THREE PROFIT WAS ONE POINT THREE NINE BILLION DOLLARS OR SIX DOLLARS AND FOURTEEN CENTS A SHARE AT PAINEWEBBER FOURTH QUARTER NET WAS FIFTY SIX POINT NINE MILLION DOLLARS OR ONE DOLLAR AND ELEVEN CENTS A SHARE UP FROM FORTY ONE POINT FOUR MILLION DOLLARS OR SEVENTY EIGHT CENTS A SHARE COMMISSIONS INCREASED TWENTY NINE PERCENT FROM THE YEAR EARLIER PERIOD TO TWO HUNDRED SIXTY FIVE POINT FIVE MILLION DOLLARS FOR THE YEAR NET ROSE FIFTEEN PERCENT TO A RECORD TWO HUNDRED FORTY SIX POINT TWO MILLION DOLLARS AS REVENUE GAINED NINETEEN PERCENT TO FOUR BILLION DOLLARS TRAVELERS INCORPORATED THE SUCCESSOR TO PRIMERICA CORPORATION REPORTED A THIRTY FIVE PERCENT RISE IN FOURTH QUARTER EARNINGS REFLECTING THE ACQUISITION OF THE SHEARSON BROKERAGE FIRM AND IMPROVED OPERATING RESULTS IN ITS OTHER BUSINESSES TRAVELERS' INVESTMENT SERVICES BUSINESS WHICH INCLUDES SMITH BARNEY SHEARSON SHOWED STRONG GROWTH IN OPERATING EARNINGS THE INCLUSION OF SHEARSON EXPLAINS MUCH OF THE GROWTH BUT AS WITH OTHER BROKERAGE FIRMS IT WAS HELPED BY THE BULL MARKET FOR STOCKS AS A RESULT THE COMPANY MADE MORE INVESTMENT BANKING FEES HIGHER PROFITS FROM CAPITAL MARKETS TRADING AND HIGHER COMMISSIONS SANFORD WEILL CHAIRMAN OF TRAVELERS NOTED THAT THE COMPANY IS WELL DIVERSIFIED AND TOOK ISSUE WITH THE NOTION THAT PROFITS OF THE NEW TRAVELERS WILL GET HAMMERED IF THE STOCK MARKET FALLS QUOTE WE HAVE A COMPANY WHERE MORE THAN HALF OUR PROFITS COME FROM RECURRING SOURCES QUOTE HE SAID IF THE MARKET GOES DOWN WE WILL STILL HAVE THOSE ENGINES OPERATING FOR US IT'S NOT LIKE WE'RE JUST IN THE BROKERAGE BUSINESS RESULTS DON'T INCLUDE FULL RESULTS OF TRAVELERS INSURANCE WHICH THE COMPANY ACQUIRED AT YEAR END IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MERRILL FELL SEVENTY FIVE CENTS TO FORTY POINT THREE SEVEN FIVE DOLLARS PAINEWEBBER DROPPED SIXTY TWO POINT FIVE CENTS TO TWENTY FIVE DOLLARS AND SEVENTY FIVE CENTS AND TRAVELERS ROSE TWENTY FIVE CENTS TO THIRTY NINE DOLLARS AND FIFTY CENTS GREG STEINMETZ CONTRIBUTED TO THIS ARTICLE COMPUTER SCIENCES CORPORATION SAID IT WON A FIVE YEAR CONTRACT WITH FORD MOTOR COMPANY'S EUROPEAN PARTS AND SERVICES OPERATIONS INDUSTRY OFFICIALS SAY THE CONTRACT VALUE IS ABOUT ONE HUNDRED MILLION DOLLARS UNDER THE CONTRACT COMPUTER SCIENCES WILL OVERSEE INFORMATION TECHNOLOGY FUNCTIONS FOR THAT PART OF FORD WHICH SERVES CUSTOMERS OF THREE THOUSAND DEALERS IN SEVENTEEN COUNTRIES FROM ITS HEADQUARTERS NEAR COLOGNE GERMANY THE COMPANY WILL MANAGE TWO PRIMARY FORD DATA CENTERS IN THE UNITED KINGDOM AND GERMANY PLUS OTHERS IN FRANCE SPAIN ITALY AND SWEDEN LATEX RESOURCES INCORPORATED SAID IT COMPLETED THE ACQUISITION OF TWO MILLION DOLLARS IN ENERGY PROPERTIES MOSTLY NATURAL GAS FROM A SELLER THAT WASN'T IDENTIFIED THE COMPANY SAID THE ACQUISITION OF PRODUCING PROPERTIES WILL INCREASE ITS DOMESTIC RESERVES BY ABOUT FIFTEEN PERCENT AND ADD NEARLY ONE MILLION DOLLARS A YEAR TO CASH FLOW SOME OF THE PROPERTIES ARE IN THE GULF COAST AREAS OF THE U. S. FRANCE'S BANQUE NATIONALE DE PARIS BANQUE PARIBAS AND CREDIT LYONNAIS WILL DIRECT THE GLOBAL PLACEMENT OF SIXTY SIX POINT FIVE MILLION SHARES IN THE SCHEDULED PRIVATIZATION OF ENERGY GROUP SOCIETE NATIONALE ELF AQUITAINE THE THREE BANKS SAID IN A JOINT STATEMENT MEANWHILE THE PLACEMENT OF ELF SHARES AMONG U. S. AND JAPANESE INVESTORS WILL BE LEAD MANAGED BY MERRILL LYNCH AND COMPANY AND DAIWA SECURITIES RESPECTIVELY UPJOHN COMPANY SAID IT ACQUIRED U. S. AND CANADIAN MARKETING RIGHTS FOR THE CANCER COMPOUND IRINOTECAN FROM YAKULT HONSHA OF TOKYO IN RETURN UPJOHN SAID IT GRANTED YAKULT HONSHA CO DEVELOPMENT AND CO MARKETING RIGHTS IN JAPAN FOR UPJOHN'S CANCER DRUG ADOZELESIN DAIICHI PHARMACEUTICALS COMPANY LIMITED OF TOKYO WILL CONTINUE TO COLLABORATE ON THE DEVELOPMENT OF IRINOTECAN AND CO PROMOTE THE DRUG WITH UPJOHN IN THE U. S. DAUPHIN DEPOSIT CORPORATION SAID ITS BOARD HAS AUTHORIZED THE REPURCHASE OF AS MANY AS ONE MILLION COMMON SHARES CURRENTLY DAUPHIN HAS ABOUT THIRTY TWO POINT FIVE MILLION SHARES OUTSTANDING IN A NEWS RELEASE THE COMMERCIAL BANKING CONCERN SAID IT EXPECTS TO USE AVAILABLE CASH FOR THE REPURCHASES WHICH WILL BE MADE FROM TIME TO TIME ON THE OPEN MARKET OR IN PRIVATELY NEGOTIATED TRANSACTIONS THE COMPANY SAID THE REPURCHASED SHARES WOULD BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING THE EMPLOYEE STOCK PURCHASE PLAN AND STOCK OPTION PLAN FRUEHAUF TRAILER CORPORATION SAID IT COMPLETED THE SALE OF ITS ALUMINUM SHEET OPERATIONS FACTORY IN DECATUR ALABAMA THAT IT JOINTLY OWNS WITH ALUMAX MILL PRODUCTS INCORPORATED TO J. POLLOCK AND COMPANY AND SOCIETY VENTURE CAPITAL TERMS WEREN'T DISCLOSED ANTHONY SMITH A PRINCIPAL IN VALENTI SMITH AND ASSOCIATES INCORPORATED OCCASIONALLY SHOUTS AND PACES WILDLY WHEN HE COUNSELS THE NEW YORK CONSULTING FIRM'S CLIENTS MAINLY SMALL BUSINESS OWNERS THE FORMER HARVARD FOOTBALL PLAYER EVEN INSPIRED A CLIENT FRANCISCO SALAS TO TACKLE HIM IN THE OFFICE MR. SMITH WAS STRESSING TO HIS CLIENT THAT BUSINESS SUCCESS SOMETIMES REQUIRES QUOTE YOU TO GET IN SOMEBODY'S FACE AND MAKE YOUR POINT QUOTE RECALLS MR. SALAS THE SIX FOOT ONE TWO HUNDRED POUND PRESIDENT OF C. S. R. CONSTRUCTION CORPORATION A BUILDER IN NUTLEY N. J. MR. SMITH'S METHODS MAY SEEM MORE PREGAME PEP TALK THAN MANAGEMENT CONSULTING BUT AMONG SMALL BUSINESS OWNERS LIKE MR. SALAS THAT KIND OF COACHING IS BECOMING MORE POPULAR FIRMS LIKE VALENTI SMITH BLEND CONVENTIONAL BUSINESS ADVICE WITH MOTIVATIONAL COUNSELING TO INSPIRE A DESIRE TO WIN BIG RATHER THAN SIMPLY HELPING CLIENTS ACHIEVE INCREMENTAL SALES INCREASES COACHES ENCOURAGE METEORIC GROWTH ACCORDING TO MR. SMITH AND HIS PARTNER ANGELO VALENTI THE UNUSUAL METHODS GET RESULTS THE MEN SAY MORE THAN HALF OF THEIR TWO HUNDRED SEVENTY FIVE CLIENTS SINCE NINETEEN NINETY ONE WHEN THEY BEGAN COACHING HAVE ACHIEVED THEIR GROWTH GOALS THESE GOALS WHICH CLIENTS ARE REQUIRED TO SET CAN BE AS AMBITIOUS AS A TWO THOUSAND PERCENT SALES RISE OVER THE COURSE OF THEIR COACHING CONTRACT VALENTI SMITH'S OWN REVENUE HAS CLIMBED ABOUT THIRTY PERCENT ANNUALLY SINCE NINETEEN NINETY ONE TO NEARLY FIVE HUNDRED THOUSAND DOLLARS LAST YEAR THE PARTNERS REPORT THE COMPANY CHARGES SMALL BUSINESS CLIENTS SIX THOUSAND DOLLARS FOR SIX MONTHS OF COACHING COMPARABLE TO FEES FOR TRADITIONAL CONSULTING A GROWING NUMBER OF SMALL BUSINESS CONSULTANTS PROMOTE THEMSELVES AS COACHES SAYS DAVID LORD EDITOR OF CONSULTANTS NEWS A NEWSLETTER IN FITZWILLIAM N. H. THE TREND REFLECTS RISING INTEREST IN PERSONALLY ORIENTED MANAGEMENT CONSULTING MR. LORD CONTINUES WE'RE SEEING A GREATER RECOGNITION OF HOW PERSONAL HANGUPS GET IN THE WAY OF BUSINESS DECISIONS BUT MR. LORD AND OTHER INDUSTRY OBSERVERS URGE SMALL BUSINESS OWNERS TO BE WARY OF PERSONAL BUSINESS CONSULTANTS PARTICULARLY THOSE WHO PROMOTE FAR FETCHED PERFORMANCE GAINS I WOULD NEVER BE SO ARROGANT AS TO THINK I COULD INCREASE SALES ONE THOUSAND PERCENT SAYS MORTIMER FEINBERG PRESIDENT OF B. F. S. PSYCHOLOGY ASSOCIATES INCORPORATED A NEW YORK CONSULTING FIRM THERE ARE TOO MANY VARIABLES IN BUSINESS AND PSYCHOLOGY IS JUST ONE OF THEM ALSO MANY ENTREPRENEURS CANNOT MANAGE TORRID GROWTH DOCTOR FEINBERG ADDS RAPID EXPANSION OFTEN IS NOT ONLY IMPRUDENT IT'S SUICIDAL HE SAYS QUOTE MODEST GROWTH IS MUCH BETTER QUOTE MESSRS SMITH AND VALENTI DISAGREE THEY SAY THAT THROUGH MOTIVATIONAL COUNSELING SMALL BUSINESS OWNERS CAN ACHIEVE A BREAKTHROUGH THIS KIND OF COACHING FREES UP PEOPLE TO TAKE ON BOLDER RISKIER AND FAR MORE PROFITABLE PROJECTS AND ACTIONS SAYS MR. SMITH THE FORTY SIX YEAR OLD WHO HAS A MASTER'S DEGREE IN COUNSELING AND HAS ADVISED PRISON INMATES WITH DRUG PROBLEMS BEGAN WORKING WITH MR. VALENTI IN NINETEEN EIGHTY FOUR MR. VALENTI FORTY FIVE FORMERLY SOLD EDUCATIONAL AIDS TO SCHOOLS IN NINETEEN NINETY THEY STARTED VALENTI SMITH FRED PIUMELLI PRESIDENT OF GETPAID SOFTWARE IN MONTVALE N. J. SAYS A YEAR OF SESSIONS WITH VALENTI SMITH HELPED HIM TO COPE WITH MISSED DEADLINES BY HIS SOFTWARE DEVELOPERS THEIR CHRONIC DESIGN DELAYS HAD FORCED HIM TO POSTPONE MARKETING NEW PRODUCTS SLOWING THE SMALL COMPANY'S SALES HE SAYS NOW MR. PIUMELLI SAYS HE WARNS SOFTWARE DEVELOPERS THAT THEY FACE DISMISSAL UNLESS THEY CAN MEET DELIVERY SCHEDULES PROMISED TO CUSTOMERS ONE RESULT AN ANNUAL DOUBLING OF SALES SINCE NINETEEN NINETY WHEN THE SESSIONS WITH VALENTI SMITH ENDED TO AN EXPECTED TWO MILLION DOLLARS THIS YEAR MR. PIUMELLI SAYS C. S. R. CONSTRUCTION'S MR. SALAS SAYS HE AND HIS PARTNER LEON COHEN ALSO BENEFITED FROM SIX MONTHS OF COACHING LAST YEAR BY VALENTI SMITH MR. SALAS SAYS THEIR FIRM WAS ON THE VERGE OF LOSING A BID TO BUILD A SIX MILLION DOLLAR POWER PLANT IN NEW JERSEY THE ELECTRIC UTILITY'S PROJECT REVIEW COMMITTEE HAD RATED C. S. R.'S BID THE BEST TECHNICALLY BUT NOT THE LOWEST MR. SALAS RECALLS MR. SMITH'S ADVICE FORGET THE COMMITTEE AND MAKE A PITCH TO THE UTILITY'S PRESIDENT MR. SALAS SAYS HE DID AND A MONTH LATER GOT THE JOB WITHOUT LOWERING HIS PRICE THE CONTRACT BECAME A MAJOR CONTRIBUTOR TO C. S. R. CONSTRUCTION'S TEN MILLION DOLLARS IN REVENUE LAST YEAR HE NOTES MR. SALAS SAYS HE WOULDN'T HAVE THOUGHT OF THE SIMPLE APPROACH ON HIS OWN I WAS TRAINED TO FOLLOW PROTOCOL TO THINK LINEARLY THAT THERE'S A CERTAIN WAY TO DO THINGS THAT GOES FROM STEP A TO STEP B. TO STEP C. HE ADDS BREAKTHROUGHS DON'T GO FROM A TO B. THEY SKIP STEPS MSSRS VALENTI AND SMITH CONCEDE THEIR BREAKTHROUGH CONCEPT SOMETIMES PRODUCES BREAKDOWNS OR MANAGEMENT PROBLEMS RELATED TO THE FIRM'S GROWTH PLAN IN FACT THE BIGGER THE BREAKTHROUGH YOU WANT THE MORE BREAKDOWNS YOU'RE GOING TO HAVE MR. VALENTI EXPLAINS THE COMPANIES THAT CAN HANDLE BREAKDOWNS ARE GOING TO GROW QUICKEST AND BE MORE PROFITABLE DANIEL VAN STARRENBURG PRESIDENT OF NATURE'S TREE INCORPORATED IN BEDFORD HILLS N. Y. SAYS A BREAKDOWN ENABLED HIM TO ACHIEVE A BREAKTHROUGH IN HIS BUSINESS CONFIDENCE HIS COMPANY HIRED VALENTI SMITH IN NINETEEN NINETY THE SESSIONS INSPIRED HIM TO BELIEVE THAT QUOTE YOU CAN MAKE A COMMITMENT TO SOMETHING AND HAVE NO IDEA HOW YOU'RE GOING TO DO IT QUOTE HE SAYS THUS MR. VAN STARRENBURG SAYS HE ACQUIRED A SMALL NEW JERSEY TREE CARE COMPANY IN NINETEEN NINETY TWO EVEN THOUGH HE KNEW HE HAD TOO FEW MANAGERS TO HANDLE THE EXPANSION HE TRANSFERRED HIS VICE PRESIDENT OF FINANCE AND TOP SALESPERSON TO THE NEW OFFICE HE SAYS HE DELEGATED THE FINANCIAL OFFICER'S DUTIES TO HIS CONTROLLER BUT BY EARLY NINETEEN NINETY THREE THE CONTROLLER HAD RESIGNED TO HAVE A BABY AND THE FINANCIAL VICE PRESIDENT LEFT FOR A COMPETITOR MR. VAN STARRENBURG FOUND HIMSELF DANGEROUSLY SHORTHANDED HE SAYS ACCOUNTING FELL BEHIND DELAYING A PROJECT AND THE FIRM'S RESPONSE TO RISING COSTS HE FINALLY FILLED THE TWO VACANT POSTS IN AUGUST MR. VAN STARRENBURG INSISTS THAT THE TEMPORARY BREAKDOWN IN MANAGEMENT MADE HIM A BETTER BUSINESS OWNER TODAY FOR INSTANCE WE MAKE SURE EVERYBODY IN THE COMPANY IS TRAINING SOMEBODY TO BE THEIR SUCCESSOR HE SAYS SALES RELATED TO THE ACQUISITION HAVE INCREASED SIXTY FOUR PERCENT SINCE NINETEEN NINETY TWO ACCOUNTING FOR ONE POINT EIGHT MILLION DOLLARS OF THE COMPANY'S TEN MILLION DOLLARS IN SALES LAST YEAR PERHAPS MOST SIGNIFICANTLY VALENTI SMITH COACHED HIM TO OVERCOME THE NATURAL FEARS YOU FACE AS AN ENTREPRENEUR MR. VAN STARRENBURG EXPLAINS HE ADDS YOU CAN GENERATE A MORE PREDICTABLE FUTURE IF YOU DO THINGS CAUTIOUSLY BUT IF YOU HAVE ONLY ONE LIFE TO LIVE WHY NOT PLAY IT ALL OUT CONDUCTUS INCORPORATED SAID IT DELIVERED A SCANNING MAGNETIC MICROSCOPE TO NIPPON TELEGRAPH AND TELEPHONE CORPORATION'S BASIC RESEARCH LABORATORY IN JAPAN IN A NEWS RELEASE THE COMPANY SAID THE MICROSCOPE ALLOWS USERS TO MAP CURRENTS FLOWING ON OR BENEATH THE SURFACE OF ELECTRONIC DEVICES AND MATERIALS THE COMPANY SAID N. T. T. BOUGHT THE MICROSCOPE TO STUDY WEAK ELECTRIC CURRENTS WITHIN SEMICONDUCTING SAMPLES OTHER POTENTIAL APPLICATIONS INCLUDE THE MAPPING OF MAGNETIC MEDIA AND THE MAPPING OF CURRENTS FLOWING IN INTEGRATED CIRCUITS CONDUCTUS ALSO SAID IT GOT A PATENT ON JANUARY EIGHTEENTH FOR A METHOD OF PREPARING ELECTRONIC STRUCTURES CONTAINING MULTIPLE SUPERCONDUCTOR LAYERS CANADIAN RETAIL SALES DECLINED ZERO POINT TWO PERCENT IN NOVEMBER FROM OCTOBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE NOVEMBER DECLINE FOLLOWED A ZERO POINT THREE PERCENT INCREASE IN SALES IN OCTOBER WORDPERFECT CORPORATION TIGHTENING ITS BELT IN RESPONSE TO SAGGING PERSONAL COMPUTER SOFTWARE PRICES SAID IT WILL DISMISS ONE THOUSAND WORKERS OR SEVENTEEN POINT FIVE PERCENT OF ITS WORLD WIDE FORCE BEST KNOWN FOR ITS FLAGSHIP FAMILY OF WORD PROCESSING PROGRAMS WORDPERFECT HAS FACED STIFFER COMPETITION IN RECENT YEARS AND SEEN PROFITS CONTRACT AND SALES GROWTH SLOW QUOTE WE NEED A LEANER MORE EFFICIENT ORGANIZATION QUOTE SAID ADRIAN RIETVELD WORDPERFECT'S CHIEF EXECUTIVE OFFICER THE CLOSELY HELD OREM UTAH COMPANY SAID IT POSTED REVENUE IN EXCESS OF SEVEN HUNDRED MILLION DOLLARS IN NINETEEN NINETY THREE AN INCREASE OF ABOUT TWENTY PERCENT BUT PROFITS WHICH THE COMPANY WOULD NOT DISCLOSE AREN'T KEEPING PACE WITH GROWTH JOHN LEWIS AN EXECUTIVE VICE PRESIDENT AT WORDPERFECT ACKNOWLEDGED THAT THE LAYOFFS ARE PARTLY AIMED AT IMPROVING PROFITS IN ORDER TO BRIGHTEN CHANCES FOR A FUTURE INITIAL PUBLIC STOCK OFFERING WORDPERFECT'S ACTION SEEMS PRUDENT GIVEN THE PRECIPITIOUS COLLAPSE IN SOFTWARE PRICES OVER THE PAST FEW YEARS OBSERVERS SAID PRODUCTS THAT ONCE SOLD FOR FIVE HUNDRED DOLLARS ARE NOW SELLING FOR A TENTH OF THAT WHEN BUNDLED IN A SO CALLED SUITE OF PROGRAMS SAID RICHARD SHAFFER EDITOR OF THE COMPUTER LETTER A NEWSLETTER WORDPERFECT WAS ESPECIALLY VULNERABLE TO PRICE CUTS BECAUSE THE COMPANY WAS LOOSELY MANAGED IN THE PAST UNTIL LAST OCTOBER WHEN WORDPERFECT INCORPORATED IN THE STATE OF DELAWARE THE COMPANY WAS ESSENTIALLY A PARTNERSHIP BETWEEN TWO EXEXECUTIVES WHO ARE STILL THE SOLE OWNERS DESPITE DEVELOPING ONE OF THE PREMIER BRANDS IN SOFTWARE DURING THE NINETEEN EIGHTIES THE COMPANY IS ONLY JUST NOW ACQUIRING SOPHISTICATED FINANCIAL PLANNING AS LATELY AS A YEAR AGO SOME EXECUTIVES WORKED WITHOUT BUDGETS AND BUSINESS WAS CONDUCTED ON A CASH BASIS THIS WAS A COMPANY THAT GREW FAST ENOUGH NOT TO WORRY ABOUT EXPENSES SAID MARY CONTI LOFFREDO AN ANALYST AT INTERNATIONAL DATA CORPORATION FRAMINGHAM MASSACHUSETTS BUT THOSE DAYS ARE NUMBERED NOW IT HAS TO START RUNNING LIKE A BUSINESS MR. LEWIS SAID WORDPERFECT HAS ADOPTED SOPHISTICATED PLANNING AND FINANCIAL PRACTICES OVER THE PAST TWO YEARS THIS IS MUCH HEALTHIER FOR US AS AN ORGANIZATION HE SAID FOR MANY YEARS THE UNDISPUTED LEADER IN THE ONE POINT THREE BILLION DOLLAR A YEAR WORD PROCESSING MARKET WORDPERFECT LOST THE TOP SPOT TO MICROSOFT CORPORATION LAST YEAR DESPITE SELLING FOUR POINT SIX MILLION COPIES OF ITS WORD PROCESSING PROGRAMS ACCORDING TO INTERNATIONAL DATA LAID OFF EMPLOYEES REGARDLESS OF TENURE WILL RECEIVE SIXTY DAYS' SEVERANCE MOST WORK IN UTAH GOODYEAR TIRE AND RUBBER COMPANY SAID IT WILL RAISE PRICES ON ALL REPLACEMENT PASSENGER AND TRUCK TIRE LINES EXCEPT TIRES FOR FARM EQUIPMENT BY THREE PERCENT EFFECTIVE MARCH FIRST THE COMPANY PREVIOUSLY ANNOUNCED A TWO PERCENT PRICE INCREASE FOR TIRES FOR FARM EQUIPMENT EFFECTIVE JANUARY FIRST GOODYEAR SAID IT IS RAISING PRICES QUOTE IN ORDER TO KEEP PACE WITH GENERAL INCREASES IN THE COST OF DOING BUSINESS QUOTE ABOUT TWO WEEKS AGO THE COMPANY'S KELLY SPRINGFIELD TIRES COMPANY SAID IT WOULD INCREASE PRICES THREE PERCENT EFFECTIVE MARCH FIRST ON ALL OF ITS TIRES FOR PASSENGER CARS AND LIGHT AND MEDIUM TRUCKS DAYTON TIRE COMPANY A UNIT OF BRIDGESTONE SLASH FIRESTONE INCORPORATED ALSO SAID ABOUT TWO WEEKS AGO THAT IT WILL RAISE PRICES BETWEEN THREE PERCENT AND FIVE PERCENT ON ALL OF ITS DAYTON AND ROAD KING LINES AS WELL AS PRIVATE LABEL LINES EFFECTIVE MARCH FIRST BRIDGESTONE SLASH FIRESTONE IS A UNIT OF BRIDGESTONE CORPORATION OF JAPAN ASKED WHETHER PRICE INCREASES ARE POSSIBLE ON BRIDGESTONE FIRESTONE OR SEIBERLING TIRES A BRIDGESTONE SLASH FIRESTONE SPOKESMAN SAID WE HAVE NO ANNOUNCEMENT AT THIS TIME A SPOKESMAN FOR GENERAL TIRE INCORPORATED A UNIT OF GERMANY'S CONTINENTAL A. G. SAID WE ARE EVALUATING THE SITUATION A SPOKESMAN FOR THE U. S. UNIT OF FRANCE BASED GROUPE MICHELIN SAID WE'RE FINALIZING THE STUDY OF MARKET TRENDS AT THE BEGINNING OF THE YEAR BEFORE DECIDING ON ANY OTHER MOVES LAST WEEK MICHELIN AMERICAS SMALL TIRES SAID IT WILL INCREASE PRICES ON PRIVATE BRAND AND ASSOCIATE BRAND TIRES NOT INCLUDING RIKEN AND KLEBER BY THREE PERCENT EFFECTIVE FOR SHIPMENTS ON OR AFTER MARCH FIRST CHESAPEAKE CORPORATION SAID IT COMPLETED THE ACQUISITION BY ITS CHESAPEAKE PACKAGING COMPANY UNIT OF CLOSELY HELD LAWLESS HOLDING CORPORATION TERMS WEREN'T DISCLOSED THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND ONE QUARTER PERCENT HIGH TWO AND FIFTEEN SIXTEENTHS PERCENT LOW THREE AND ONE EIGHTH PERCENT NEAR CLOSING BID THREE AND THREE SIXTEENTHS PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH THREE PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH FIVE PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT OH EIGHT PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE OH PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT ONE TWO PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT ONE EIGHT PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FIFTY NINE DAYS THREE POINT THREE OH PERCENT TWO HUNDRED SIXTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE TWO PERCENT THIRTY DAYS THREE POINT ONE THREE PERCENT SIXTY DAYS THREE POINT ONE SIX PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE TWO PERCENT ONE MONTH TWO POINT FIVE FIVE PERCENT TWO MONTHS TWO POINT FIVE FIVE PERCENT THREE MONTHS TWO POINT SEVEN ONE PERCENT SIX MONTHS THREE POINT OH FIVE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH ONE PERCENT ONE MONTH THREE POINT OH SEVEN PERCENT THREE MONTHS THREE POINT TWO THREE PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH THREE PERCENT THIRTY DAYS THREE POINT OH FOUR PERCENT SIXTY DAYS THREE POINT OH FIVE PERCENT NINETY DAYS THREE POINT OH EIGHT PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE TWO PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE SEVEN PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT FOUR MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND THREE EIGHTHS PERCENT SIX MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT NINE OH PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY TWENTY FOURTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE SIX PERCENT THIRTEEN WEEKS THREE POINT ONE FOUR PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT FOUR PERCENT SIXTY DAYS SIX POINT NINE ONE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT THREE PERCENT SIXTY DAYS SIX POINT NINE THREE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN FOUR PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS BROOKLYN UNION GAS COMPANY SAID ITS GAS ENERGY INCORPORATED UNIT FORMED A NEW MARKETING PARTNERSHIP TO ENTER THE ELECTRIC POWER TRADING BUSINESS THE GAS UTILITY SAID THE PARTNERSHIP CALLED POWERNET WILL SEEK APPROVAL FROM THE FEDERAL ENERGY REGULATORY COMMISSION TO MARKET AND BROKER POWER AND MAKE WHOLESALE TRANSACTIONS GAS ENERGY SAID THE NEW WHOLESALE ELECTRICITY MARKETING EFFORT COULD INCLUDE EXCESS POWER AVAILABLE FROM ITS EXISTING GAS FIRED COGENERATION UNITS THE PARTNERSHIP INCLUDES SEVERAL INDIVIDUALS WHO WORKED WITH BROOKLYN UNION GAS WHEN IT BEGAN MARKETING AND TRADING NATURAL GAS DURING THE PAST DECADE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BROOKLYN UNION SHARES CLOSED AT TWENTY SEVEN POINT THREE SEVEN FIVE DOLLARS DOWN TWELVE POINT FIVE CENTS MASTERCARD INTERNATIONAL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER ALEX W. QUOTE PETE QUOTE HART IS LEAVING THE CREDIT CARD ASSOCIATION TO BECOME EXECUTIVE VICE CHAIRMAN OF ADVANTA CORPORATION A FINANCIAL SERVICES COMPANY ADVANTA MARKETS A VARIETY OF PRODUCTS INCLUDING MORTGAGE SERVICES AND EQUIPMENT LEASING BUT CREDIT CARDS ARE ITS MAIN BUSINESS THE COMPANY BASED IN HORSHAM PENNSYLVANIA FOCUSES ON NO FEE MASTERCARD AND VISA GOLD CARDS AND IT RANKS AS ONE OF THE NATION'S TEN LARGEST GOLD CARD ISSUERS DENNIS ALTER ADVANTA'S CHAIRMAN AND CHIEF EXECUTIVE SAID MR. HART WILL HELP PLAN THE COMPANY'S FUTURE IN THE RAPIDLY CHANGING CONSUMER FINANCE INDUSTRY WE'RE NOT SURE WHAT DIRECTION ADVANTA WILL TAKE MR. ALTER SAID HE LATER PREDICTED THAT MR. HART WILL EXPLORE THE POSSIBILITY OF OVERSEAS EXPANSION OR THE INTRODUCTION OF CO BRANDED CREDIT CARDS THE CARD INDUSTRY'S FASTEST GROWING PRODUCT LINE CO BRANDED CARDS ARE ISSUED BY BANKS BUT BEAR THE NAME OF NONBANK COMPANIES OR ORGANIZATIONS ALTHOUGH MR. HART WILL REPORT DIRECTLY TO MR. ALTER THE CHAIRMAN EMPHASIZED THAT WE'RE A COMPANY WITH AN ENTREPRENEURIAL APPROACH WITHOUT A RIGID HIERARCHY HE SAID MR. HART ACTUALLY WILL FUNCTION AS A PARTNER WITH HIM AND RICHARD A. GREENAWALT ADVANTA'S PRESIDENT AND CHIEF OPERATING OFFICER MR. GREENAWALT WHO ALSO IS A MASTERCARD INTERNATIONAL BOARD MEMBER HAS KNOWN MR. HART FOR SEVERAL YEARS FOR MASTERCARD AN ASSOCIATION OF MORE THAN TWENTY NINE THOUSAND FINANCIAL INSTITUTIONS MR. HART'S DEPARTURE IS A SETBACK MASTERCARD LOST MARKET SHARE FOR MOST OF THE NINETEEN EIGHTIES AND MR. HART IS WIDELY CREDITED FOR A TURNAROUND THAT BEGAN ABOUT THREE YEARS AGO PETE CAUSED THE BOARD TO SET UP A STRATEGY ARTHUR B. ZIEGLER CHAIRMAN EMERITUS OF MASTERCARD'S BOARD SAID IN AN INTERVIEW QUOTE HE BROADENED OUR PRODUCT HONED OUR MARKETING DEVELOPED OUR GLOBAL BUSINESS AND BEST OF ALL HE CREATED A STRONG MANAGEMENT TEAM QUOTE MR. ZIEGLER WHO WILL DIRECT THE SEARCH FOR MR. HART'S SUCCESSOR SAID THE BOARD'S EXECUTIVE COMMITTEE WOULD MEET TOMORROW TO BEGIN A WORLD WIDE SEARCH HE SAID THAT BOTH EXTERNAL AND INTERNAL CANDIDATES WOULD BE CONSIDERED MR. HART SAID HE WAS DRAWN TO ADVANTA FOR A NUMBER OF REASONS THEY HAVE A REPUTATION FOR BEING ON THE FRONT END OF EVERY TREND IN THE MARKET HE SAID AND THEY ARE IN A GREAT POSITION TO TAKE ADVANTAGE OF NEW SERVICES DRIVEN BY TECHNOLOGICAL IMPROVEMENTS MR. HART ALSO SAID THAT MASTERCARD'S IMPROVED COMPETITIVE CONDITION MADE IT A LESS EXCITING PLACE TO WORK SOME OF THE EXCITEMENT OF THE TURNAROUND WAS BEHIND US HE SAID ANOTHER FACTOR WAS THE TRAVEL DEMANDS OF THE MASTERCARD JOB MR. HART SAID HE WAS AWAY FROM HOME ONE HUNDRED THIRTY FIVE NIGHTS LAST YEAR IN ADDITION ADVANTA OFFERS ITS SENIOR EXECUTIVES EQUITY OWNERSHIP AND STOCK OPTIONS INCENTIVES THAT MASTERCARD A NONPROFIT ASSOCIATION OWNED BY CARD ISSUING BANKS COULD NOT PROVIDE MORE THAN ANYTHING HOWEVER MR. HART SAID THE NEW JOB WILL GIVE HIM A CHANCE TO BE MORE DIRECTLY INVOLVED IN THE BUSINESS OF CONSUMER FINANCE I FOUND MYSELF DOING A LOT MORE REFEREEING THAN PLAYING AT MASTERCARD HE SAID I'M LOOKING FORWARD TO GETTING BACK ON THE FIELD LOOKS LIKE THE CLINTON HEALTH CARE PROPOSAL HAS PROBLEMS ON DEFENSE LAST WEEK HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI APPEARED BEFORE THIRTY FIVE HEALTH INSURANCE ASSOCIATION OF AMERICA MEMBERS TO WARN THEM TO END THEIR T. V. ADS IN WHICH A COUPLE NAMED QUOTE HARRY AND LOUISE QUOTE EXPRESS MISGIVINGS ABOUT THE CLINTON PLAN YOUR MESSAGES ARE BECOMING THE WILLIE HORTON COMMERCIALS OF THE HEALTH CARE CAMPAIGN ROSTY PONTIFICATED BUT THEN MR. ROSTENKOWSKI BECAME ALL SWEETNESS TELLING HIAA MEMBERS IT'S TIME TO MAKE A DEAL BUT MAKING A DEAL IMPLIES A WILLINGNESS TO COMPROMISE IT REQUIRES YOU TO ABANDON THE HIGH PROFILE OUTSIDE GAME YOU'VE BECOME SO GOOD AT AND INSTEAD EMBRACE AN INTENSE BUT PRIVATE INSIDE GAME HMMM SOUNDS LIKE HIAA'S CAMPAIGN IS HAVING AN IMPACT IT'S HARD TO SEE WHY ANYONE INCLUDING THE OPPONENTS OF CLINTONCARE WOULD ABANDON AN OUTSIDE STRATEGY JUST WHEN IT'S MOVING THE BALL THE DAY BEFORE CONGRESS RECONVENES TO BEGIN WORK ON LEGISLATION OVERHAULING THE U. S. HEALTH SYSTEM GROUPS REPRESENTING DOCTORS AND INSURERS STEPPED UP CAMPAIGNS LAMBASTING GOVERNMENT OR BUREAUCRATIC CONTROLS ON THE HEALTH INDUSTRY THE AMERICAN MEDICAL ASSOCIATION AND THE HEALTH INSURANCE ASSOCIATION OF AMERICA BOTH UNVEILED NEW ADVERTISING CAMPAIGNS BUT AS INDUSTRY GROUPS WERE INTENSIFYING THEIR CRITICISM OF VARIOUS HEALTH REFORM PROPOSALS OTHER ORGANIZATIONS WERE EMBARKING ON PLANS TO PROMOTE A VAST OVERHAUL OF THE HEALTH SYSTEM LAST WEEKEND THE HEALTH CARE REFORM PROJECT A COALITION OF UNIONS CONSUMER GROUPS AND OTHER ORGANIZATIONS BEGAN A RADIO TELEVISION AND PRINT CAMPAIGN PROMOTING SOME OF THE SAME REFORMS PRESIDENT CLINTON HAS PROPOSED INCLUDING CAPS ON INSURANCE PREMIUMS QUOTE THERE IS A SERIOUS PROBLEM WITH THE HEALTH SYSTEM REFORM PLANS NOW BEING DEBATED IN CONGRESS QUOTE THE AD GOES ON TO PROCLAIM THEY DON'T GUARANTEE THAT YOUR PHYSICIAN WILL CONTINUE TO SET THE QUALITY STANDARDS FOR MEDICAL CARE AT THE SAME TIME THE HIAA SAID IT HAS BEGUN AIRING TWO NEW HARRY AND LOUISE COMMERCIALS THE CONTROVERSIAL SERIES OF TELEVISION ADS SHOW AN ORDINARY COUPLE WORRYING ABOUT FEATURES OF THE WHITE HOUSE HEALTH PLAN ONE OF THE NEW COMMERCIALS SHOWS HARRY AND LOUISE IN THEIR LIVING ROOM FRETTING ABOUT HEALTH CARE ALLIANCES THE REGIONAL HEALTH INSURANCE BUYING POOLS THAT WOULD BE SET UP UNDER THE CLINTON PLAN THIS PLAN FORCES US TO BUY OUR INSURANCE THROUGH THESE NEW MANDATORY GOVERNMENT HEALTH ALLIANCES SAYS LOUISE DURING THE THIRTY SECOND SPOT RUN BY TENS OF THOUSANDS OF NEW BUREAUCRATS ADDS HARRY ANOTHER BILLION DOLLAR BUREAUCRACY LAMENTS LOUISE SUCH CRITICISM ISN'T NEW BUT THE MEDICAL GROUPS' CAMPAIGNS HAVE TAKEN ON A NEW URGENCY BECAUSE DESPITE ALL THE TALK OF CHANGING THE HEALTH SYSTEM OVER THE PAST YEAR THE LEGISLATIVE DEBATE IS ONLY NOW BEGINNING IN EARNEST PRESIDENT CLINTON'S STATE OF THE UNION ADDRESS TONIGHT WILL STRESS HEALTH CARE AFTER THAT PANELS RESPONSIBLE FOR HEALTH CARE LEGISLATION IN THE HOUSE ALMOST IMMEDIATELY WILL BEGIN DRAFTING BILLS TO RESTRUCTURE THE MEDICAL SYSTEM ON CAPITOL HILL REPUBLICAN MEMBERS OF THE JOINT ECONOMIC COMMITTEE RELEASED A REPORT THAT SAID THE WHITE HOUSE'S PROPOSED FINANCING SCHEME FOR EXTENDING HEALTH COVERAGE TO ALL AMERICANS WILL FALL ONE TRILLION DOLLARS SHORT OVER THE FIRST SEVEN YEARS OF THE PLAN THE DEMOCRATIC CHAIRMAN OF THE COMMITTEE REPRESENTATIVE DAVE OBEY OF WISCONSIN ANGRILY ATTACKED THE REPORT AS A QUOTE STRAIGHT PARTISAN HATCHET JOB QUOTE AT A NEWS BRIEFING A. M. A. OFFICIALS SAID THEY WOULDN'T ENDORSE ANY OF THE HALF DOZEN MAJOR HEALTH BILLS INTRODUCED IN CONGRESS BUT THEY SAID THEY WOULD INSIST THAT ANY HEALTH REFORM PROPOSAL HAVE SEVERAL FEATURES MEDICAL COVERAGE FOR ALL AMERICANS GUARANTEED PATIENT CHOICE OF HEALTH PLANS AND DOCTORS ASSURANCES THAT QUALITY WON'T BE SACRIFICED REVISION OF ANTITRUST LAWS TO ALLOW DOCTORS TO NEGOTIATE WITH INSURANCE COMPANIES AND HOSPITAL NETWORKS AND ASSURANCES THAT DOCTORS MAKE THE PRIMARY DECISIONS ABOUT MEDICAL CARE THE OFFICIALS ALSO REPEATED THEIR INTENTION OF SETTING UP A GRASS ROOTS LOBBYING CAMPAIGN BY ASKING DOCTORS TO KEEP INFORMATION ON HEALTH CARE REFORM IN THEIR WAITING ROOMS THEY ALSO URGED PHYSICIANS ACROSS THE COUNTRY TO WRITE LETTERS TO THE EDITOR AND GIVE SPEECHES ON HEALTH CARE REFORM TO CIVIC CLUBS HIAA OFFICIALS MET YESTERDAY FOR ONE AND ONE HALF HOURS WITH SENIOR ADMINISTRATION OFFICIALS INCLUDING WHITE HOUSE AIDES IRA MAGAZINER GEORGE STEPHANOPOULOS AND HAROLD ICKES THE HIAA HAS BEEN INVOLVED IN SOMETHING OF A PUBLIC FEUD WITH THE WHITE HOUSE EVER SINCE IT BEGAN AIRING THE HARRY AND LOUISE ADS WHICH MANY PEOPLE CRITICIZED AS DISTORTING FEATURES OF THE CLINTON PLAN HIAA PRESIDENT BILL GRADISON CALLED YESTERDAY'S SESSION VERY CONSTRUCTIVE MUCH OF THE CONVERSATION PARTICIPANTS SAID FOCUSED ON THE INSURANCE INDUSTRY'S OPPOSITION TO MANDATORY HEALTH ALLIANCES MARY AGNES CAREY CONTRIBUTED TO THIS ARTICLE COTT CORPORATION SAID IT REACHED AN AGREEMENT WITH THE BEVERAGE UNIT OF CADBURY SCHWEPPES P. L. C. TO PROVIDE MARKETING AND PACKAGE DESIGN SERVICES FOR RETAILER BRANDED SOFT DRINKS PRODUCED IN EUROPE BY CADBURY THE FIVE YEAR AGREEMENT IS SUBJECT TO REGULATORY REVIEW IN EUROPE COTT A MISSISSAUGA ONTARIO PRIVATE LABEL SOFT DRINK CONCERN CURRENTLY HAS NOMINAL SALES IN EUROPE COTT ALSO GRANTED CADBURY BASED IN THE U. K. AN OPTION TO ACQUIRE A FORTY NINE PERCENT STAKE IN COTT'S EUROPEAN UNIT THE TERMS OF WHICH WEREN'T DISCLOSED THE FEDERAL DEPOSIT INSURANCE CORPORATION PROPOSED GUIDELINES AIMED AT PREVENTING INSIDERS FROM REAPING EXCESSIVE PROFITS WHEN CERTAIN DEPOSIT OR OWNED MUTUAL SAVINGS BANKS CONVERT TO STOCKHOLDER OWNED INSTITUTIONS BUT TWO OF THE THREE F. D. I. C. BOARD MEMBERS ALL OF WHOM VOTED FOR THE PROPOSAL SAID IT DOESN'T GO FAR ENOUGH IN PREVENTING ABUSES BY OFFICERS AND DIRECTORS OF SAVINGS BANKS UNDERGOING SUCH A CONVERSION MANY OF THESE INSIDERS HAVE PROFITED HANDSOMELY AT THE EXPENSE OF DEPOSITORS CRITICS SAY AS THEY BECAME LARGE SHAREHOLDERS IN EFFECT TAPPING INTO THE CAPITAL OF THE CONVERTED SAVINGS BANK SUCH CONVERSION WINDFALLS HAVE OFTEN GONE TO OFFICERS AND DIRECTORS WHO HAVE BEEN AT THE INSTITUTIONS FOR ONLY A SHORT TIME THIS HAS RESULTED IN QUOTE A REAL MALDISTRIBUTION OF CAPITAL QUOTE SAID BERT ELY A BANKING CONSULTANT THE F. D. I. C. PROPOSAL WOULD SET GUIDELINES FOR CONVERSION FROM MUTUAL TO STOCK OWNERSHIP BY STATE CHARTERED SAVINGS BANKS THAT ARE UNDER THE AGENCY'S FEDERAL SUPERVISION THERE ARE CURRENTLY NO GUIDELINES FOR SUCH BANKS FEDERALLY CHARTERED SAVINGS AND LOAN ASSOCIATIONS AND SAVINGS BANKS AND STATE CHARTERED S. AND L.S ARE REGULATED BY THE OFFICE OF THRIFT SUPERVISION AMONG POLICIES TO BE OVERSEEN BY F. D. I. C. EXAMINERS THE F. D. I. C. PROPOSAL SPECIFIES THAT ADEQUATE PROTECTION BE GIVEN TO DEPOSITORS IN PRICING OF THE NEW SHARES APPORTIONING THE STOCK AND TIMELY DISCLOSURE OF RELEVANT INFORMATION TO PROSPECTIVE STOCKHOLDERS IT ALSO SAID THAT ANY SPECIAL DEFERENCE TO INSIDERS BE LIMITED AVOIDING STOCK APPORTIONING THAT LEADS TO INDIVIDUAL WINDFALL GAINS FURTHER THE F. D. I. C. COULD SEEK CHANGES IN THE CONVERSION IF THE TRANSACTION RAISES CONCERNS ABOUT THE INSTITUTION'S SOUNDNESS OR LEGAL LIABILITY BUT EUGENE LUDWIG THE COMPTROLLER OF THE CURRENCY AND ONE OF THE THREE F. D. I. C. BOARD MEMBERS SAID THE STAFF WRITTEN PROPOSAL ADOPTED BY THE BOARD FAILS TO ADDRESS THE ABUSES THAT ARE NOW OCCURRING AND WOULD LET INSIDERS CONTINUE UNJUSTLY APPROPRIATING THE VALUE OF MUTUAL SAVINGS BANKS THAT CONVERT TO STOCK INSTITUTIONS HE SAID THE PROPOSAL TOO NARROWLY DEFINES THE F. D. I. C.'S ROLE DEALING ONLY WITH AN INSTITUTION'S SAFETY AND SOUNDNESS WHILE IGNORING DEPOSITOR INTERESTS IF A FINAL POLICY CAN'T BE SHAPED TO PREVENT ABUSES LEGISLATION SHOULD BE DEVELOPED JONATHAN FIECHTER THE ACTING O. T. S. DIRECTOR AND MR. LUDWIG BOTH SAID F. D. I. C. ATTORNEYS VOICED DOUBTS THAT THE AGENCY HAS AUTHORITY TO REGULATE CONVERSIONS SUCH AS THAT HELD BY THE O. T. S. THE O. T. S. LIMITS THE AMOUNT OF STOCK THAT OFFICERS AND DIRECTORS CAN BUY IN A CONVERSION PUTTING THEM THIRD BEHIND EMPLOYEE STOCK OWNERSHIP PLANS AND DEPOSITORS A BILL OFFERED TWO MONTHS AGO BY HOUSE BANKING COMMITTEE LEADERS WOULD REQUIRE THAT F. D. I. C. SUPERVISED STATE CHARTERED SAVINGS BANKS ADHERE TO THE SAME CONVERSION RULES AS O. T. S. REGULATED INSTITUTIONS FOREIGN INVESTORS IN MEXICO ARE SHOWING A PREFERENCE FOR LONGER TERM INVESTMENTS HERE A TREND THAT COULD PROVIDE AN IMPORTANT BOOST TO THE STOCK MARKET THIS YEAR LAST YEAR IT SEEMED AS IF INVESTORS IN MEXICO COULD DO NO WRONG THE MEXICAN BOLSA'S I. P. C. INDEX SOARED FORTY NINE POINT NINE PERCENT IN LOCAL CURRENCY TERMS LAST YEAR WITH SEVERAL STOCKS UP ONE HUNDRED PERCENT OR MORE EVEN INVESTORS IN SHORT TERM TREASURY BILLS DID WELL IN NINETEEN NINETY THREE TAKING ADVANTAGE OF THE COUNTRY'S VERY HIGH INTEREST RATES FOR NINETEEN NINETY FOUR STRATEGISTS ARE EXPECTING AT LEAST A TWENTY PERCENT RISE IN MEXICO'S I. P. C. INDEX YESTERDAY THE INDEX ROSE TEN POINT FIVE THREE POINTS TO A NEW HIGH OF TWO THOUSAND SIX HUNDRED NINETY THREE POINT SEVEN ONE YEAR TO DATE THE I. P. C. IS UP THREE POINT FIVE PERCENT CHANGES IN MEXICAN FISCAL AND MONETARY POLICY AND IN THE TYPE OF INVESTOR APPROACHING MEXICO TODAY ARE LIKELY TO MAKE STOCKS AND LONG TERM MEXICAN BONDS THE FAVORED INVESTMENTS OF THE YEAR PROVIDING STRONG SUPPORT FOR BOTH MARKETS WHILE DEMAND FOR SHORT TERM GOVERNMENT SECURITIES FADES THE NEW APPETITE FOR LONG TERM MEXICAN ASSETS IS FUELED BY SEVERAL FACTORS THE APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT IS EXPECTED TO PROVIDE A BASE OF ECONOMIC GROWTH FOR MEXICO DURING THE NEXT SEVERAL YEARS ALSO YIELDS ON MEXICAN TREASURY BILLS KNOWN AS QUOTE CETES QUOTE CONTINUE TO FALL TO THEIR LOWEST LEVELS EVER PUSHING MANY SHORT TERM YIELD PLAYERS OUT OF THE MEXICAN MARKET J. P. MORGAN FOR EXAMPLE EXPECTS AN AVERAGE RETURN ON TWENTY EIGHT DAY CETES OF NINE POINT FIVE PERCENT IN DOLLAR TERMS THIS YEAR DOWN FROM THIRTEEN POINT FIVE PERCENT LAST YEAR BUT THIS SAME DECLINE IN INTEREST RATES SHOULD BOOST CORPORATE PROFITS FOR MANY MEXICAN COMPANIES AND HELP STIMULATE CONSUMPTION AND GROWTH HERE THE CETES GAME IS OVER SAYS CARRIE SCHLOSS CO MANAGER OF THE KEMPER INTERNATIONAL FUND INVESTORS ARE ROLLING OUT OF THE CETES MARKET INTO THE STOCK MARKET ADDS JOYCE CHANG DIRECTOR AT SALOMON BROTHERS PEOPLE ARE NOT LOOKING AT MEXICO NOW AS A TWENTY EIGHT DAY CETES PLAY YOU HAVE A DIFFERENT INVESTOR BASE GOING INTO THE MARKET A BASE THAT HAS A LONGER TERM PERSPECTIVE TAKE FIDELITY MANAGEMENT AND RESEARCH COMPANY THE GIANT BOSTON MONEY MANAGER AS AN EXAMPLE LINCOLN ANDERSON THE FIRM'S DIRECTOR OF ECONOMIC ANALYSIS SAYS FIDELITY HAS BEEN SHIFTING TO PURCHASES OF STOCKS AND LONGER TERM MEXICAN BONDS WE WERE A BIG CETES HOLDER MR. ANDERSON SAYS BUT NOW QUOTE WE ARE MOVING INTO EQUITIES AND INTO LONGER TERM DEBT MARKETS QUOTE HE ADDS WE HAVE REALLY BEEFED UP OUR ANALYST COVERAGE OF MEXICO AMONG THE SIGNS THAT THE APPETITE FOR MEXICAN STOCKS ARE RISING IN DECEMBER ALONE MEXICAN COMPANIES RAISED ONE POINT EIGHT THREE BILLION DOLLARS IN NEW CAPITAL THROUGH OFFERINGS OF AMERICAN DEPOSITARY RECEIPTS ACCORDING TO THE MAGAZINE LATINFINANCE MORE THAN THEY SOLD IN THE PREVIOUS ELEVEN MONTHS FOREIGN OWNERSHIP OF MEXICAN STOCKS AT YEAR END ROSE TO FIFTY SIX POINT EIGHT BILLION DOLLARS ABOUT TWENTY EIGHT PERCENT OF THE MARKET'S VALUE FROM TWENTY EIGHT POINT FIVE BILLION DOLLARS OR TWENTY ONE PERCENT OF THE MARKET'S VALUE AT THE START OF NINETEEN NINETY THREE MORE OFFERINGS ARE ON THE WAY INVESTMENT BANKERS HERE SAY THE FOLLOWING MEXICAN COMPANIES ARE CONSIDERING U. S. LISTINGS FURNITURE RETAILER SALINAS Y. ROCHA GRUPO FINANCIERO BANCOMER HOLDING COMPANY FOR MEXICO'S SECOND LARGEST BANK EL PALACIO DE HIERRO A SPECIALTY RETAILER COMERCIAL MEXICANA A SUPERMARKET CHAIN EMPRESAS LA MODERNA A TOBACCO COMPANY AND IUSACELL THE CELLULAR PHONE COMPANY BUSINESS AND THE GOVERNMENT TAKE GREAT PAINS TO MONITOR FOREIGN INVESTMENT FLOWS INTO MEXICO FOREIGN INFLOWS ARE CRITICAL BECAUSE THE ECONOMY IS DEEPLY DEPENDENT ON THEM MEXICO DOESN'T HAVE ENOUGH DOMESTIC SAVINGS OR EXPORT EARNINGS TO FINANCE WHAT IT SPENDS ON FOREIGN GOODS CONSEQUENTLY THE COUNTRY HAS TO BORROW FOREIGN SAVINGS BY ATTRACTING INVESTORS TO MARKETS OR INVESTMENTS HERE WITH THE NORTH AMERICAN FREE TRADE AGREEMENT IN PLACE THE DEMAND FOR FOREIGN GOODS FROM COMPUTERS TO FACTORY EQUIPMENT IS LIKELY TO INCREASE J. P. MORGAN ECONOMIST JAMES NASH FOR EXAMPLE PREDICTS THAT MEXICO'S CURRENT ACCOUNT DEFICIT WHICH INCLUDES TRADE WILL RISE ONE POINT FIVE BILLION DOLLARS THIS YEAR TO TWENTY TWO POINT NINE BILLION DOLLARS OR SIX PERCENT OF GROSS DOMESTIC PRODUCT TO COVER THAT INCREASE J. P. MORGAN PREDICTS MEXICO WILL ATTRACT AN ADDITIONAL ONE POINT FOUR BILLION DOLLARS INTO ITS CAPITAL ACCOUNT THIS YEAR THE CATEGORY THAT MEASURES AMONG OTHER THINGS THE INFLOW OF FOREIGN SAVINGS MEXICO'S CAPITAL ACCOUNT IS EXPECTED TO REACH TWENTY THREE POINT FIVE BILLION DOLLARS THIS YEAR CERTAINLY CETES WILL CONTINUE TO PULL IN SOME FOREIGN INVESTMENT BUT MR. NASH BELIEVES INVESTORS WILL BEGIN TO FAVOR LONGER TERM INVESTMENTS SINCE NINETEEN NINETY TWO MEXICO'S RELIANCE ON SHORT TERM INFLOWS HAS INCREASED SUBSTANTIALLY HE SAYS BUT NOW THE COMPOSITION OF CAPITAL FLOW WILL BE HOPEFULLY MORE BIASED TOWARD LONG TERM ASSETS MEXICAN INVESTORS TOO ARE SHOWING A PREFERENCE FOR LONGER TERM ASSETS SAYS ARTURO ACEVEDO ACEVES DIRECTOR OF RESEARCH AT MEXICAN BROKERAGE FIRM VECTOR THERE IS A DOMESTIC MARKET FOR TWENTY YEAR PAPER NOW HE SAYS THERE ARE TWO CLEAR RISKS TO INVESTING IN MEXICAN STOCKS THIS YEAR HOWEVER FIRST MEXICAN INFLATION COULD ACCELERATE IN RESPONSE TO THE UPRISING IN CHIAPAS THE MEXICAN GOVERNMENT WILL SPEND FIFTY THREE POINT NINE PERCENT OF THE FEDERAL BUDGET ON SOCIAL PROGRAMS MORE THAN ANY PAST ADMINISTRATION SECONDLY NOT ALL MEXICAN COMPANIES WILL FARE WELL UNDER NAFTA MS. SCHLOSS THE CO MANAGER OF THE KEMPER INTERNATIONAL FUND WHICH POSTED A TOTAL RETURN OF THIRTY FIVE POINT FOUR PERCENT LAST YEAR SAYS SEVERAL MEXICAN COMPANIES OFFER EARNINGS GROWTH POTENTIAL IN NINETEEN NINETY FOUR SHE LIKES GRUPO CARSO THE CONGLOMERATE WITH INTERESTS IN TELEFONOS DE MEXICO AND IN RETAILING THROUGH ITS SANBORN BROTHERS UNIT CIGARETTES MINING AUTO PARTS AND CONSTRUCTION STOCKS ARE HIGH ON HER LIST AMONG OTHER HOLDINGS SHE HAS STAKES IN THE FOOD CONCERN GRUPO HERDEZ THE CONSTRUCTION COMPANY CEMEX TILE MAKER INTERCERAMIC AND CONTRACTOR BUFETE INDUSTRIAL AMONG FINANCIAL STOCKS MS. SCHLOSS OWNS SHARES IN MEXICO'S LARGEST BANK HOLDING COMPANY BANACCI SHE ALSO OWNS GRUPO FINANCIERO INBURSA THE BROKERAGE AND NEWLY FORMED BANKING UNIT CONTROLLED BY MEXICAN BILLIONAIRE CARLOS SLIM QUOTE I THINK THEY HAVE A NICHE AND I THINK THEY WILL HAVE VERY FAST GROWTH QUOTE SHE SAYS SHE ALSO OWNS GRUPO FINANCIERO SERFIN THE THIRD LARGEST MEXICAN BANKING COMPANY AS A TURNAROUND STORY MS. SCHLOSS SOLD BOTTLERS SUCH AS GRUPO GEMEX PANAMCO AND COCA COLA FEMSA BECAUSE THEY WERE TOO EXPENSIVE BUT SHE STILL HAS A STAKE IN COCA COLA FEMSA'S PARENT KNOWN SIMPLY AS FEMSA WHICH ALSO HAS A LARGE BREWING BUSINESS I THINK YOU WILL SEE FAIRLY STRONG ECONOMIC GROWTH IN NINETEEN NINETY FOUR AND THAT WILL TRANSLATE INTO FAIRLY STRONG EARNINGS GROWTH SHE SAYS I WOULD EXPECT A TOTAL RETURN OF AT LEAST TWENTY FIVE PERCENT IN NINETEEN NINETY FOUR IN MEXICAN STOCKS ROGER PEIRCE WAS NAMED PRESIDENT OF THE NEW ELECTRONIC FUNDS SERVICES UNIT OF THIS INFORMATION PROCESSING COMPANY THE UNIT COMBINES THE POINT OF SALE OIL AND GAS DEBIT AND PRIVATE LABEL TRANSACTION CARD BUSINESSES MR. PEIRCE FIFTY TWO WAS EXECUTIVE VICE PRESIDENT AT CREDIT CARD ASSOCIATION VISA INTERNATIONAL RESPONSIBLE FOR WORLD WIDE DELIVERY SYSTEMS IN SAN FRANCISCO VISA SAID WILLIAM L. CHENEVICH FIFTY SUCCEEDS MR. PEIRCE MR. CHENEVICH WHO JOINED VISA IN OCTOBER WAS SUPERVISING DEVELOPMENT OF NEW CREDIT DEBIT AND RISK CONTROL SERVICES AT THE VISANET STRATEGIC UNIT AMPHENOL CORPORATION A WALLINGFORD CONNECTICUT MAKER OF CONNECTORS AND CABLES SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF CLASS A COMMON STOCK INCLUDING ABOUT FOUR MILLION NEW SHARES AND ABOUT THREE POINT SEVEN MILLION SHARES BY ABOUT A DOZEN TOP MANAGERS AMPHENOL SAID IT WILL USE ITS PROCEEDS TO PREPAY DEBT THE EXECUTIVES ARE ALL SELLING LESS THAN TEN PERCENT OF THEIR HOLDINGS THE COMPANY SAID IN NEW YORK STOCK EXCHANGE TRADING AMPHENOL SHARES FELL ONE POINT ONE TWO FIVE DOLLARS A SHARE OR SIX POINT SIX PERCENT TO CLOSE AT SIXTEEN DOLLARS COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE THIS GRAPHIC ARTS AND SPECIALTY CHEMICAL CONCERN'S POLYCHROME CORPORATION UNIT NAMED THOMAS BITTNER CHIEF EXECUTIVE OFFICER MR. BITTNER FORTY THREE YEARS OLD SUCCEEDS MELVIN A. ETTINGER FIFTY TWO WHO LEFT THE COMPANY TO BECOME PRESIDENT OF VERDEPRINT TECHNOLOGIES A UNIT OF XEROX CORPORATION MR. BITTNER REMAINS PRESIDENT OF POLYCHROME SHORT INTEREST IN NASDAQ STOCKS SCHEDULED TO HAVE BEEN REPORTED AT THE CLOSE OF TRADING YESTERDAY WILL BE RELEASED AT THE CLOSE OF TRADING FRIDAY BECAUSE OF WEATHER RELATED DELAYS ACCORDING TO THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THE SHORT INTEREST TABLE FOR NASDAQ ISSUES WILL APPEAR IN MONDAY'S EDITION OF THE WALL STREET JOURNAL SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL QUOTE THE REPORTING OF SHORT INTEREST DATA HAS BEEN DELAYED UNTIL THE MARKET CLOSE FRIDAY BECAUSE LAST WEEK'S ADVERSE WEATHER CONDITIONS MEANT THAT N. A. S. D. STAFF IN ROCKVILLE MARYLAND COULDN'T GET IN TO ENTER THE FIGURES QUOTE SAID AN N. A. S. D. SPOKESMAN A NUMBER OF NASDAQ LISTED FIRMS MAY ALSO HAVE BEEN LATE IN REPORTING SHORT INTEREST DATA SO WE DECIDED TO GIVE THESE COMPANIES A LITTLE EXTRA TIME TO PROVIDE N. A. S. D. WITH THEIR RESPECTIVE SHORT INTEREST ENTRIES HE SAID BOEING COMPANY REPORTED A FIFTEEN PERCENT DROP IN FOURTH QUARTER NET INCOME A SMALLER DECLINE THAN MOST SECURITIES ANALYSTS HAD EXPECTED STILL SOME ANALYSTS LOWERED THEIR ESTIMATES FOR BOEING'S NINETEEN NINETY FOUR EARNINGS BECAUSE THE COMPANY PLANS TO SPEND MORE ON NEW AIRPLANE DEVELOPMENT THE SEATTLE AEROSPACE CONCERN SAID IT EARNED THREE HUNDRED FOUR MILLION DOLLARS OR EIGHTY NINE CENTS A SHARE DOWN FROM THREE HUNDRED FIFTY SEVEN MILLION DOLLARS OR ONE DOLLAR AND FIVE CENTS A SHARE A YEAR EARLIER SALES FOR THE QUARTER FELL TWENTY FIVE PERCENT TO FIVE POINT SIX SIX BILLION DOLLARS FROM SEVEN POINT FIVE OH BILLION DOLLARS FOR ALL NINETEEN NINETY THREE EARNINGS DROPPED TWENTY PERCENT TO ONE POINT TWO FOUR BILLION DOLLARS OR THREE DOLLARS AND SIXTY SIX CENTS A SHARE FROM ONE POINT FIVE FIVE BILLION DOLLARS OR FOUR DOLLARS AND FIFTY SEVEN CENTS A SHARE SALES SLID SIXTEEN PERCENT TO TWENTY FIVE POINT FOUR FOUR BILLION DOLLARS FROM THIRTY POINT ONE EIGHT BILLION DOLLARS THE COMPANY ALSO PROJECTED THAT NINETEEN NINETY FOUR SALES WILL FALL EVEN MORE SHARPLY BY AT LEAST SEVENTEEN POINT FIVE PERCENT TO BETWEEN TWENTY BILLION DOLLARS AND TWENTY ONE BILLION DOLLARS BOEING SHARES CLOSED AT FORTY FOUR DOLLARS AND FIFTY CENTS DOWN SIXTY TWO POINT FIVE CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TOUGH TIMES IN THE AIRLINE INDUSTRY HAVE HURT BOEING'S ORDERS FOR NEW COMMERCIAL AIRPLANES AND FORCED SHARP PRODUCTION RATE CUTS AND HEAVY LAYOFFS DESPITE THE CUTBACKS THE COMPANY SEEMS TO BE HOLDING THE LINE ON COSTS AND GENERALLY MAINTAINING PROFIT MARGINS ANALYSTS WERE ENCOURAGED BY THOSE SIGNALS AND SURPRISED BY THE FOURTH QUARTER EARNINGS THAT WERE ABOUT SIX CENTS A SHARE HIGHER THAN THEIR CONCENSUS ESTIMATE THE PERFORMANCE WAS ATTRIBUTED TO LOWER THAN EXPECTED OUTLAYS FOR RESEARCH AND DEVELOPMENT FOR NEW MODELS OF VARIATIONS OF AIRLINERS HOWEVER A BELIEF THAT BOEING WILL RETURN TO HIGHER LEVELS OF DEVELOPMENT SPENDING THIS YEAR PROMPTED SOME ANALYSTS TO REDUCE THEIR NINETEEN NINETY FOUR EARNINGS PROJECTIONS BOEING IS LIKELY TO SPEND ONE POINT SEVEN FIVE BILLION DOLLARS THIS YEAR ON THREE PLANES AN ADVANCED THREE HUNDRED FIFTY SEAT SEVEN HUNDRED SEVENTY SEVEN AIRLINER A MORE EFFICIENT SMALL TWIN JET CALLED THE SEVEN HUNDRED THIRTY SEVEN TO SEVEN HUNDRED AND A FREIGHTER VARIANT OF ITS WIDEBODY SEVEN SIXTY SEVEN PLANE ACCORDING TO WOLFGANG DEMISCH OF B. T. SECURITIES IN NEW YORK QUOTE THERE IS NO SHORTAGE OF THINGS TO SPEND MONEY ON QUOTE MR. DEMISCH SAID HE LOWERED HIS NINETEEN NINETY FOUR EARNINGS ESTIMATE TO TWO DOLLARS AND TEN CENTS A SHARE FROM TWO DOLLARS AND FORTY CENTS A SHARE HE ALSO REDUCED HIS NINETEEN NINETY FIVE ESTIMATE TO TWO DOLLARS AND FIFTEEN CENTS A SHARE FROM TWO DOLLARS AND TWENTY CENTS BUT ANALYSTS ALSO SAID THEY WERE ENCOURAGED BY THE STRENGTH OF BOEING'S COMMERCIAL AIRLINER PROFIT MARGINS WHICH DESPITE THE PRODUCTION CUTS DECLINED ONLY TO EIGHT PERCENT OF REVENUE IN NINETEEN NINETY THREE FROM EIGHT POINT TWO PERCENT OF REVENUE IN NINETEEN NINETY TWO AND THEY ARE OPTIMISTIC THAT BOEING'S INVESTMENT NOW WILL PAY OFF WHEN THE AIRLINER MARKET BOUNCES BACK BOEING SAID THE NINETEEN NINETY THREE EARNINGS DECLINE WAS MAINLY DUE TO HEAVY DEVELOPMENT EXPENSES AND TO REDUCED COMMERCIAL AIRCRAFT SALES BOEING DELIVERED THREE HUNDRED THIRTY COMMERCIAL JET TRANSPORTS LAST YEAR COMPARED WITH FOUR HUNDRED FORTY ONE FOR NINETEEN NINETY TWO THOSE FACTORS WERE PARTLY OFFSET BY INCREASED REVENUE FROM CUSTOMER FINANCING WHICH HAS RISEN RAPIDLY AS AIRLINES HAVE NEEDED MORE HELP PAYING FOR AIRCRAFT CUSTOMER FINANCING COMMITMENTS AT BOEING TOTALED THREE POINT TWO BILLION DOLLARS IN THE FOURTH QUARTER DOWN FROM THREE POINT FIVE BILLION DOLLARS IN THE THIRD QUARTER BUT STILL FAR HIGHER THAN LAST YEAR'S AMOUNTS BOEING OFFICIALS HAVE TOLD ANALYSTS THAT FINANCING TOTALS WILL RISE IN NINETEEN NINETY FOUR BEFORE DROPPING BACK BY THE END OF THE YEAR TO NINETEEN NINETY THREE YEAR END LEVELS WHILE SOME ANALYSTS WERE DISAPPOINTED WITH PROFIT MARGINS AT BOEING'S DEFENSE AND SPACE UNIT BOEING CHAIRMAN FRANK SHRONTZ SAID IN THE COMPANY'S EARNINGS REPORT THAT THE NINETEEN NINETY THREE IMPROVEMENT REFLECTED BOTH STRONG PROGRAM PERFORMANCE AND EXCELLENT COST MANAGEMENT MICHAEL LAMBERT FORTY SEVEN YEARS OLD WAS NAMED VICE PRESIDENT OF MARKETING OF THIS PERSONAL COMPUTER MAKER'S SYSTEMS DIVISION HE SUCCEEDS KEVIN BOHREN THIRTY SIX WHO LAST YEAR WAS NAMED VICE PRESIDENT OF DESKTOP MARKETING MR. LAMBERT WAS PREVIOUSLY GENERAL MANAGER OF THE LARGE COMPUTER PRODUCTS DIVISION OF N. C. R. CORPORATION A UNIT OF AMERICAN TELEPHONE AND TELEGRAPH COMPANY AS THE ETHICS OF PERSONAL STOCK TRADES STIR UP A RUCKUS IN THE MUTUAL FUND INDUSTRY ONE THING IS BECOMING CLEAR PERSONAL TRADING BY FUND MANAGERS IS WIDESPREAD AND SOMETIMES FEVERISH AFTER INVESCO FUNDS GROUP FIRED STAR MANAGER JOHN KAWESKE FOR HIS ALLEGED FAILURE TO REPORT TEN OR TWENTY PERSONAL TRADES THIS NEWSPAPER ASKED SOME LEADING MUTUAL FUND COMPANIES ABOUT THE LEVEL OF PERSONAL TRADING AT THEIR FIRMS THE ANSWERS BALTIMORE'S T. ROWE PRICE ASSOCIATES SAYS ITS MOST ACTIVE FUND MANAGER HAD TWENTY ONE PERSONAL STOCK TRADES DURING THE PAST TWELVE MONTHS IN NEW YORK SCUDDER STEVENS AND CLARK SAYS THAT SOME OF ITS PORTFOLIO MANAGERS DO TWO OR THREE TRADES A MONTH MORE THAN HALF OF PIONEER GROUP'S PORTFOLIO MANAGERS HAD NO TRADES IN NINETEEN NINETY THREE BUT ONE MANAGER NOTCHED UP THIRTY THREE TRANSACTIONS ACCORDING TO A SPOKESWOMAN FOR THE BOSTON BASED COMPANY THE MOST ACTIVE INVESTOR IN KEYSTONE GROUP'S INVESTMENT DEPARTMENT IN BOSTON DID SIX PERSONAL TRADES IN THE LAST QUARTER OF NINETEEN NINETY THREE PUTNAM INVESTMENTS IN BOSTON LOOKED AT A SAMPLING OF ITS MUTUAL FUND MANAGERS THE MOST PROLIFIC TRADER HAD FORTY EIGHT BUYS AND SELLS IN NINETEEN NINETY THREE WITH AN AVERAGE VALUE OF TWO THOUSAND FIVE HUNDRED DOLLARS THE HEAVIEST TRADER AT DENVER BASED INVESCO CLOCKED SOME THIRTY TRANSACTIONS DURING THE PAST YEAR BUT THE BUSIEST TRADERS ARE BELIEVED TO BE AT FIDELITY INVESTMENTS THE COUNTRY'S LARGEST MUTUAL FUND GROUP SOME MANAGERS AT THE BOSTON FUND GIANT RACK UP AS MANY AS TWO HUNDRED PERSONAL TRADES IN A YEAR ACCORDING TO KNOWLEDGEABLE PEOPLE FIDELITY DECLINED TO COMMENT ON THAT FIGURE FORMER FIDELITY EMPLOYEES SAY THE FIRM'S TRADITION OF PERSONAL TRADING IS CLOSELY ASSOCIATED WITH CELEBRATED FUND MANAGER PETER LYNCH WHO RAN FIDELITY MAGELLAN FUND FOR THIRTEEN HUGELY SUCCESSFUL YEARS BEFORE STEPPING DOWN IN NINETEEN NINETY HE NOW WORKS PART TIME FOR THE FIRM MR. LYNCH TOOK OUT A PERSONAL LOAN IN THE NINETEEN SEVENTIES SO HE WOULD HAVE MORE MONEY TO TRADE WITH IN HIS PERSONAL ACCOUNT ACCORDING TO A FIDELITY SPOKESWOMAN MR. LYNCH ALSO USED TO BUY STOCKS ON MARGIN WHICH INVOLVES BORROWING PART OF A STOCK'S PURCHASE PRICE FROM A BROKERAGE FIRM QUOTE EVEN PRIOR TO PETER IT WAS PART OF THE CULTURE TO SAY WE'RE LOOKING FOR PEOPLE WHO TRADE FOR THEIR OWN ACCOUNT QUOTE SAYS WILLIAM HAYES A FIDELITY MANAGING DIRECTOR IF MANAGERS HAVE MONEY AT RISK THEY MORE FULLY APPRECIATE WHAT IT'S LIKE FOR SHAREHOLDERS TO HAVE MONEY AT RISK MR. HAYES SAYS FIDELITY LOOKS TO HIRE MANAGERS WHO LOVE THE MARKET IT'S A NATURAL OUTGROWTH THAT THEY'LL OCCASIONALLY WANT TO TRADE FOR THEMSELVES IN THE LONG RUN THAT MAKES THEM BETTER MANAGERS AND HELPS THE SHAREHOLDERS AND THAT SHOWS IN THE FUNDS' RESULTS NOT ALL FUND GROUPS ENCOURAGE THEIR FUND MANAGERS TO TRADE MANY FEEL HOWEVER THEY HAVE NO CHOICE BUT TO ALLOW MANAGERS TO TRADE ON THEIR OWN A PERFECTLY LEGAL PRACTICE WHEN DONE WITHIN FEDERAL RULES BECAUSE BANNING PERSONAL TRADES MIGHT PROMPT TALENTED MONEY MANAGERS TO QUIT ANYBODY WHO'S ANY GOOD INVESTS FOR THEIR OWN ACCOUNT SAYS DONNA CALDER A FORMER OPPENHEIMER MANAGEMENT FUND MANAGER WHO NOW RUNS A NEW YORK BASED HEDGE FUND IT'S ONE OF THE PERKS OF THE JOB AND A GREAT ONE BUT PERSONAL TRADING ALSO RAISES A SLEW OF THORNY ISSUES IT IS ILLEGAL FOR MANAGERS TO QUOTE FRONT RUN QUOTE BY BUYING OR SELLING A PARTICULAR STOCK AHEAD OF THEIR FIRM'S MUTUAL FUNDS FUND COMPANIES HAVE STRICT RULES TO GUARD AGAINST FRONT RUNNING AS A RESULT FUND COMPANY EXECUTIVES AND FUND MANAGERS SAY THEY ARE MORE CONCERNED ABOUT OTHER ABUSES THAT ARE HARDER TO DETECT IS A MANAGER FOR INSTANCE SPENDING TOO MUCH TIME WORKING ON HIS PERSONAL ACCOUNT IS HE CHOOSING NOT TO BUY A STOCK FOR HIS FUND SO THAT HE CAN BUY IT INSTEAD FOR HIS PERSONAL ACCOUNT IS A MANAGER GETTING A SPECIAL FAVOR FROM A STOCK PROMOTER SUCH AS PARTICIPATION IN A PRIVATE PLACEMENT OR AN INITIAL PUBLIC OFFERING AS AN INDUCEMENT TO BUY OTHER DEALS FOR HIS FUND ANY TIME A MANAGER TRADES FOR HIS OWN ACCOUNT THERE'S THE POTENTIAL FOR A CONFLICT OF INTEREST SAYS WILLIAM KEITHLER WHO LEFT INVESCO TO BECOME MANAGER OF BERGER SMALL COMPANY GROWTH FUND I DON'T DO A LOT OF TRADING FOR MYSELF AND WHEN I DO I BUY SOMETHING I DEEM TOO SPECULATIVE FOR MY OWN FUND MOST OF THE TIME IT DOESN'T WORK OUT THE STOCK CERTIFICATES END UP AS WALLPAPER MR. KEITHLER NOTES THAT HE CAN NO LONGER TRADE FOR HIS OWN ACCOUNT HIS NEW EMPLOYER BERGER ASSOCIATES RECENTLY BARRED PORTFOLIO MANAGERS FROM OWNING INDIVIDUAL STOCKS IN THEIR PERSONAL ACCOUNTS FOLLOWING THE FIRING OF INVESCO'S MR. KAWESKE THERE'S BEEN NO RUSH TO FOLLOW BERGER'S MOVE THOUGH MANY FIRMS HAVE SAID THEY ARE REVIEWING THEIR POLICIES RICHARD FONTAINE MANAGER OF FONTAINE CAPITAL APPRECIATION FUND SAYS PERSONAL TRADING IS LESS PREVALENT NOW THAN IT WAS IN THE EARLY NINETEEN EIGHTIES WHEN HE ENTERED THE MONEY MANAGEMENT BUSINESS BACK THEN THIS WASN'T A HIGH PAYING BUSINESS SAYS MR. FONTAINE THERE WERE GUYS WHO TOLD YOU THEY ONLY MADE ONE HUNDRED THOUSAND DOLLARS IN SALARY BUT THEY MADE ANOTHER ONE HUNDRED THOUSAND DOLLARS IN THEIR PERSONAL ACCOUNT BUT THESE DAYS EVERYBODY'S MAKING A LOT OF MONEY QUOTE FROM MANAGING FUNDS SO PERSONAL TRADING IS LESS IMPORTANT SENIOR FUND MANAGERS NOW MAKE AN AVERAGE ONE HUNDRED SEVENTY THOUSAND DOLLARS ACCORDING TO NEW YORK'S BUCK CONSULTANTS BUT TOTAL COMPENSATION FOR TOP MANAGERS AT A FEW FUNDS CAN RUN TO TWO MILLION DOLLARS AND MORE SAYS RICHARD LANNAMANN A MANAGING DIRECTOR WITH EXECUTIVE RECRUITERS RUSSELL REYNOLDS ASSOCIATES IF MONEY ISN'T THE ISSUE WHY DO MANAGERS TRADE FOR THEIR OWN ACCOUNTS RATHER THAN SIMPLY INVESTING THEIR MONEY IN THEIR OWN AND OTHER MUTUAL FUNDS FOR THE BEST MANAGERS INVESTING IS NOT ONLY THEIR PROFESSION IT'S THEIR HOBBY SAYS STEVEN SOMES A FUND MANAGER WITH BOSTON'S STATE STREET RESEARCH AND MANAGEMENT THEY LOVE THE MARKETS THAT LOVE IS WHAT SEPARATES THE REALLY GOOD MANAGERS FROM THE REST MR. SOMES SAYS HE BUYS TEN TO TWENTY STOCKS A YEAR IN HIS PERSONAL ACCOUNT MANAGERS INSIST PERSONAL TRADING DOESN'T DETRACT FROM EFFORTS THEY PUT INTO MANAGING THEIR FUNDS THERE'S THIS IDEA THAT FUND MANGERS SPEND HALF OR THREE QUARTERS OF THEIR TIME INVESTING FOR THEIR OWN ACCOUNT SAYS MS. CALDER THE FORMER MANAGER WITH OPPENHEIMER MANAGEMENT WHICH ISN'T RELATED TO OPPENHEIMER AND COMPANY THAT'S NOT THE CASE I DIDN'T SPEND A LOT OF TIME ON MY OWN ACCOUNT QUOTE SHE SAYS THAT IN ANY ONE YEAR AS A FUND MANAGER SHE NEVER BOUGHT MORE THAN TWELVE TO FIFTEEN STOCKS FOR HER PERSONAL ACCOUNT SHOULD FUND INVESTORS WORRY ABOUT THOSE PERSONAL TRADES I DON'T THINK IT HAS ANYTHING TO DO WITH THE MUTUAL FUND INVESTOR MS. CALDER RESPONDS MUTUAL FUND INVESTORS ARE THERE TO MAKE A POSITIVE RETURN ON THEIR INVESTMENT AND THAT'S ALL THEY SHOULD BE CONCERNED ABOUT CITING APPARENT PRICE GOUGING IN THE WAKE OF LAST WEEK'S EARTHQUAKE THE SOUTHLAND CORPORATION SAID IT NOTIFIED EIGHT SEVEN ELEVEN CONVENIENCE STORE FRANCHISEES IN THE LOS ANGELES AREA THAT IT WILL TERMINATE THEIR CONTRACTS DALLAS BASED SOUTHLAND SAID CALLS FROM CUSTOMERS COMPLAINING ABOUT PROFITEERING LED THE COMPANY TO SEND ITS OWN EMPLOYEES OUT TO SHOP AT ABOUT ONE HUNDRED OF ITS FRANCHISE CONVENIENCE STORES THE COMPANY DISCOVERED EIGHT STORES MOST OF THEM IN THE SAN FERNANDO VALLEY THAT HAD SUBSTANTIALLY RAISED PRICES IN SOME CASES DOUBLING THEM ON BASIC ITEMS SUCH AS FOOD AND WATER A SOUTHLAND SPOKESWOMAN SAID THE COMPANY IS TURNING OVER THE RESULTS OF ITS INVESTIGATION TO THE LOS ANGELES CITY ATTORNEY'S OFFICE A CITY ORDINANCE MAKES IT A MISDEMEANOR TO RAISE PRICES MORE THAN TEN PERCENT AFTER AN EMERGENCY IS DECLARED SAID GREG PARHAM DEPUTY CITY ATTORNEY MR. PARHAM SAID THE CITY HASN'T CHARGED ANYONE WITH PROFITEERING BUT HE ADDED THAT THERE IS EVIDENCE OF WIDESPREAD PRICE GOUGING BY MERCHANTS IN THE HARDEST HIT PARTS OF THE CITY AND THAT AN INVESTIGATION CONTINUES SOUTHLAND DECLINED TO RELEASE THE NAMES OR LOCATIONS OF THE EIGHT FRANCHISES A SPOKESWOMAN SAID THE COMPANY HASN'T PREVIOUSLY TERMINATED ANY FRANCHISEES FOR PRICE GOUGING THE U. S. COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA HAS UPHELD CHANGES ON A ONE YEAR PILOT BASIS TO THE NASDAQ STOCK MARKET'S SMALL ORDER EXECUTION SYSTEM SET TO GO INTO EFFECT TODAY THE SECURITIES AND EXCHANGE COMMISSION LATE LAST MONTH APPROVED A NATIONAL ASSOCIATION OF SECURITIES DEALERS PROPOSAL TO REDUCE THE MAXIMUM SIZE OF ORDERS FOR S. O. E. S. TO FIVE HUNDRED SHARES FROM AN EXISTING ONE THOUSAND SHARE LIMIT THE RULES ALSO PROHIBIT SHORT SALES ON THE SYSTEM THE S. E. C. DELAYED IMPLEMENTING THE RULES UNTIL TODAY FROM THE PLANNED EFFECTIVE DATE OF JANUARY SEVENTH TO PREPARE FOR THE COURT ACTION SEVERAL SMALL BROKERAGE FIRMS THAT DEPEND ON S. O. E. S. FOR MUCH OF THEIR BUSINESS HAD SOUGHT INTERVENTION FROM THE COURT THE FIRMS HAVE CLAIMED THEY COULD BE PUT OUT OF BUSINESS OR FORCED TO LAY OFF EMPLOYEES BECAUSE OF THE RULES BUT NASDAQ MARKET MAKERS HAVE SAID FOR YEARS THAT THESE QUOTE S. O. E. S. ACTIVIST QUOTE FIRMS ABUSE THE SYSTEM BY SENDING REPEATED ORDERS TO MARKET MAKERS IN RAPID SUCCESSION WHEN STOCK PRICES CHANGE QUICKLY THESE PROFESSIONALS TRADE LARGE AMOUNTS OF STOCK BEFORE MARKET MAKERS CAN ADJUST THE ADVERTISED PRICES AT WHICH THEY WILL BUY OR SELL COSTING THE MARKET MAKERS THOUSANDS OF DOLLARS IN THE ORDER TODAY THE COURT SAID PETITIONERS HAVE NOT DEMONSTRATED THE REQUISITE IRREPARABLE INJURY TO WARRANT THE RELIEF SOUGHT JAPAN'S AUTO PRODUCTION IN NINETEEN NINETY THREE FELL TEN POINT TWO PERCENT THE LARGEST DECLINE IN FORTY SIX YEARS AS SALES SLUMPED AT HOME AND ABROAD THE JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION SAID JAPAN THE WORLD'S TOP AUTOMOBILE PRODUCER SINCE NINETEEN EIGHTY THIS YEAR IS LIKELY TO PLACE SECOND BEHIND THE U. S. THE TRADE GROUP SAID WHILE JAPAN'S PRODUCTION FELL TO ELEVEN MILLION TWO HUNDRED TWENTY SEVEN THOUSAND FIVE HUNDRED FORTY FIVE VEHICLES IN NINETEEN NINETY THREE U. S. OUTPUT ROSE TWELVE PERCENT FROM THE PREVIOUS YEAR TO TEN MILLION EIGHT HUNDRED SIXTY SEVEN THOUSAND SIX HUNDRED FIFTY EIGHT LAST YEAR ALSO MARKED THE FIRST TIME SINCE WORLD WAR TWO THAT JAPAN'S AUTO PRODUCTION FELL THREE CONSECUTIVE YEARS IT SLIPPED ONE POINT EIGHT PERCENT IN NINETEEN NINETY ONE AND FIVE POINT SIX PERCENT IN NINETEEN NINETY TWO JAPAN'S DOMESTIC VEHICLE SALES FELL SEVEN POINT ONE PERCENT FROM A YEAR EARLIER TO SIX MILLION FOUR HUNDRED SIXTY SEVEN THOUSAND TWO HUNDRED SEVENTY EIGHT IN NINETEEN NINETY THREE EXPORTS FELL ABOUT ELEVEN PERCENT TO FIVE POINT OH TWO MILLION VEHICLES PACKARD BELL ELECTRONICS INCORPORATED SAID IT MOVED OUT OF ITS HEADQUARTERS HERE FOLLOWING EXTENSIVE DAMAGE FROM LAST WEEK'S EARTHQUAKE THE NATION'S FOURTH LARGEST PERSONAL COMPUTER MAKER SAID IT RELOCATED ITS ADMINISTRATIVE TECHNICAL SUPPORT AND PRODUCTION OPERATIONS TO ONE HUNDRED SIXTY THOUSAND SQUARE FEET OF LEASED SPACE IN WESTLAKE VILLAGE ABOUT TWENTY MILES FROM HERE UNTIL THE HEADQUARTERS WAS MOVED OVER THE WEEKEND MUCH OF THE CLOSELY HELD COMPANY WAS RUN FROM THE CHATSWORTH PARKING LOT WHERE DEPARTMENTS WERE ORGANIZED AROUND GROUPS OF CONFERENCE ROOM TABLES PACKARD BELL OFFICIALS SAID THE INITIAL DAMAGE FROM THE QUAKE WAS COMPOUNDED BY FLOODING LAST WEDNESDAY WHEN CITY CREWS RESTORED WATER SERVICE SETTING OFF FIRE SPRINKLERS AND FLOODING THE DAMAGED BUILDING THE COMPANY SAID ABOUT SEVENTY PERCENT OF ITS PRODUCTION CAPACITY WAS TEMPORARILY KNOCKED OUT MOST OF THAT WORK IS NOW BEING SHIFTED TO THE NEW WESTLAKE SITE PACKARD BELL ALSO SAID IT HAS ACCELERATED THE PREVIOUSLY ANNOUNCED MOVE OF ITS TECHNICAL SUPPORT BUSINESS TO UTAH THAT OPERATION INITIALLY NOT SCHEDULED TO OPEN UNTIL MARCH WILL NOW BEGIN TAKING CALLS BY EARLY FEBRUARY MEANTIME PACKARD BELL SAID IT'S CONTINUING TO SEARCH FOR A PERMANENT HEADQUARTERS SITE AS TO WHETHER THAT NEW HOME WOULD BE IN CALIFORNIA OFFICIALS DECLINED TO COMMENT THE ENVIRONMENTAL PROTECTION AGENCY SAID IT WILL REQUIRE THAT NEW CARS AND TRUCKS INCLUDE A DEVICE THAT CAPTURES GASOLINE VAPORS THAT OTHERWISE WOULD ESCAPE INTO THE ATMOSPHERE DURING REFUELING THE DEVICE IS AN ENLARGED AND SOMEWHAT RECONFIGURED VERSION OF THE CHARCOAL FILLED CANISTER REQUIRED TO CAPTURE EVAPORATIVE EMISSIONS ON CURRENT MODEL AUTOMOBILES BUT WHERE EXISTING CANISTERS ARE IN THE ENGINE COMPARTMENT OR NEAR THE GAS TANK THE NEW CANISTER WILL EXTEND TO THE QUOTE FILLER NECK QUOTE WHERE GASOLINE IS PUMPED IN AT THE SERVICE STATION THE NEW REFUELING CANISTERS ARE REQUIRED FOR AUTOMOBILES UNDER THE NINETEEN NINETY CLEAN AIR ACT IN ISSUING ITS FINAL RULE ON THE MATTER THE E. P. A. EXTENDED THE REQUIREMENT TO TRUCKS THOUGH WITH A SLOWER PHASE IN PERIOD AUTO COMPANIES AND THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION AN AGENCY WITHIN THE TRANSPORTATION DEPARTMENT HAVE LONG CONTENDED THAT THE NEW CANISTERS WOULD POSE A SAFETY HAZARD BY INCREASING THE LIKELIHOOD OF FIRE DURING A CRASH BUT ENVIRONMENTAL GROUPS AND THE E. P. A. NOTING THAT VEHICLE USE HAS DOUBLED SINCE THE EARLY NINETEEN SEVENTIES WHEN EVAPORATIVE EMISSIONS CONTROLS FIRST CAME INTO BEING CONTEND THAT THE NEW DEVICES ARE NEEDED TO REDUCE SMOG IT'S A HUGE STEP FORWARD THAT WILL BE GOOD FOR CONSUMERS SAID E. P. A. ADMINISTRATOR CAROL BROWNER THE E. P. A. SAID THE NEW RULE WHEN FULLY PHASED IN WOULD REDUCE EVAPORATIVE EMISSIONS NINETY FIVE PERCENT BRIAN O'NEILL PRESIDENT OF THE INSURANCE INSTITUTE FOR HIGHWAY SAFETY SAID HIS GROUP WOULD HAVE PREFERRED THE FEDERAL GOVERNMENT TO IMPOSE THE REFUELING CONTROLS AT THE GASOLINE PUMP AN OPTION HE TERMED A CLEAR AND SAFE ALTERNATIVE THE NINETEEN NINETY CLEAN AIR LAW DID IMPOSE REFUELING CONTROLS ON GAS PUMPS AT SERVICE STATIONS IN FIFTY FIVE CITIES INCLUDING LOS ANGELES SAINT LOUIS AND WASHINGTON WHERE SMOG IS ESPECIALLY SEVERE NEARLY ALL OF THOSE CITIES HAVE BY NOW INSTALLED TECHNOLOGIES TO RECAPTURE VAPORS FROM THE PUMP NOZZLE VARYING IN SOPHISTICATION FROM A SOMEWHAT CLUMSY PLASTIC SHEATH TO LESS OBTRUSIVE VACUUM DEVICES AN E. P. A. OFFICIAL SAID THESE REQUIREMENTS ARE LIKELY TO BE SCALED BACK OR DROPPED ONCE THE ON BOARD CONTROLS ARE FULLY IN PLACE AUTOMOBILE MAKERS MUST INSTALL THE NEW REFUELING CANISTERS IN FORTY PERCENT OF NEW CARS BY THE NINETEEN NINETY EIGHT MODEL YEAR EIGHTY PERCENT OF NEW CARS BY THE NINETEEN NINETY NINE MODEL YEAR AND ONE HUNDRED PERCENT OF NEW CARS BY THE TWO THOUSAND MODEL YEAR MAKERS OF LIGHT TRUCKS SUCH AS MINIVANS PICKUPS AND DELIVERY TRUCKS MUST PHASE IN THE CANISTERS FROM TWO THOUSAND ONE TO TWO THOUSAND THREE FOR TRUCKS UP TO SIX THOUSAND POUNDS AND FROM TWO THOUSAND FOUR TO TWO THOUSAND SIX FOR TRUCKS OF SIX THOUSAND TO EIGHT THOUSAND FIVE HUNDRED POUNDS THE E. P. A. ESTIMATES THAT IMPLEMENTING THE RULE WILL COST TEN DOLLARS PER VEHICLE WHILE THE INDUSTRY ESTIMATES THE RULE WILL COST ABOUT THIRTY DOLLARS PER VEHICLE IN A TURNAROUND FROM A YEAR AGO A MAJORITY OF SMALL AND MEDIUM SIZE BUSINESSES IN THE NEW YORK METROPOLITAN AREA EXPECT HIGHER SALES AND PROFITS THIS YEAR AND MORE THAN A THIRD SAID THEY WILL HIRE NEW PERMANENT WORKERS SHOULD BUSINESS IMPROVE ACCORDING TO A SURVEY BY CONSULTING FIRM ARTHUR ANDERSEN MORE THAN SIXTY SIX PERCENT OF THREE HUNDRED FIVE EXECUTIVES POLLED JUST BEFORE THE YEAR END EXPECT A SALES INCREASE THIS YEAR COMPARED WITH THIRTY NINE PERCENT IN A YEAR END NINETEEN NINETY TWO SURVEY FIFTY NINE PERCENT SEE HIGHER PROFITS COMPARED WITH THIRTY FOUR PERCENT IN NINETEEN NINETY TWO MORE THAN FORTY THREE PERCENT OF THE RESPONDENTS SAID THEY PLAN TO EXPAND THEIR PERMANENT WORK FORCES IF BUSINESS IMPROVES ANOTHER TWENTY FIVE PERCENT SAID THEY WILL HIRE ADDITIONAL TEMPORARY WORKERS WHILE SLIGHTLY MORE THAN TWENTY THREE PERCENT SAID THEY WILL INCREASE THE OVERTIME WORK OF THEIR CURRENT EMPLOYEES IN THE NINETEEN NINETY TWO SURVEY ONLY TWENTY ONE PERCENT INDICATED THEY WOULD INCREASE THEIR PERMANENT HIRES WITH OTHERS SAYING THEY WOULD DO MORE WITH FEWER PEOPLE FORMER GENERAL MOTORS CORPORATION CHAIRMAN ROBERT C. STEMPEL WANTS TO DRIVE BACK INTO THE AUTO BUSINESS THIS TIME IN AN ELECTRIC CAR MR. STEMPEL OUSTED AS CHAIRMAN OF THE WORLD'S LARGEST AUTO MAKER IN A NOVEMBER NINETEEN NINETY TWO BOARDROOM COUP SAID HE'S IN THE QUOTE PRELIMINARY QUOTE STAGES OF FORMING A VERY SMALL COMPANY THAT WILL BUILD AND SELL ELECTRIC CARS IT'S A BUSINESS MR. STEMPEL'S SUCCESSORS AT G. M. HAVE BACKED AWAY FROM IN THEIR DRIVE TO BOOST G. M.'S PROFITS INDEED SHORTLY AFTER MR. STEMPEL'S FORCED RESIGNATION G. M. SHELVED PLANS FOR ONE OF HIS FAVORITE PROJECTS THE HIGH VOLUME MANUFACTURE OF AN ELECTRIC POWERED TWO SEATER CALLED THE IMPACT EVEN THOUGH MOST BIG THREE EXECUTIVES QUESTION WHETHER IT'S POSSIBLE TO MAKE MONEY SELLING ELECTRIC VEHICLES MR. STEMPEL SAID THE ELECTRIC CAR IS INEVITABLE NEXT STEP IN THE EVOLUTION OF THE U. S. AUTOMOBILE TO WORK WITH TODAY'S CARS YOU HAVE TO HAVE A COMPUTER IN YOUR OTHER HAND MR. STEMPEL SAID IT'S ONLY A LOGICAL EXTENSION TO GO A STEP FURTHER AND DO IT ALL ELECTRONICALLY MR. STEMPEL CONFIRMING A STORY IN YESTERDAY'S EDITION OF THE TRADE JOURNAL AUTOMOTIVE NEWS SAID HE FIRST PLANS TO FOCUS ON MASS PRODUCTION OF A BATTERY THAT WILL WORK FOR HIS CAR VENTURE TO THAT END HE AIMS TO HELP ENERGY CONVERSION DEVICES INCORPORATED A TROY MICHIGAN COMPANY HE JOINED EARLIER THIS MONTH AS A BOARD MEMBER ENERGY CONVERSION IS STRUGGLING TO MASS PRODUCE A NICKEL METAL HYDRIDE BATTERY WHICH SHOWS PROMISE FOR IMPROVING ON THE RANGE OF EIGHTY MILES OR SO THAT CURRENT LEAD ACID BATTERIES DELIVER ON MOST ELECTRIC CARS THAT WILL BE NO EASY TASK THE E. C. D. BATTERY'S MATERIALS ARE EXPENSIVE THAT PUTS IT AT A COST DISADVANTAGE AGAINST LEAD ACID BATTERIES CURRENTLY THE MOST POPULAR ENERGY SOURCE FOR MOST ELECTRIC CARS MR. STEMPEL SAYS IF THE E. C. D. BATTERY IS SUCCESSFUL HE THEN MAY BEGIN ASSEMBLING CAPITAL TO FORM HIS OWN ELECTRIC CAR ASSEMBLY VENTURE TO DATE HE SAID HE HASN'T INCORPORATED OR ENLISTED VENTURE CAPITAL PARTNERS FOR A CAR MAKING OPERATION EVENTUALLY MR. STEMPEL SAYS HE COULD WIND UP SUPPLYING HIS CARS TO OTHER AUTO MAKERS INCLUDING G. M. ALL MAJOR AUTO MAKERS FACE A MANDATE FROM CALIFORNIA TO MAKE ELECTRIC VEHICLES ACCOUNT FOR TWO PERCENT OF THEIR TOTAL SALES IN THE STATE BY NINETEEN NINETY EIGHT MR. STEMPEL SAID HE DOESN'T AGREE WITH CALIFORNIA'S MANDATE BUT ADDED THAT HIS AMBITION IS TO CREATE A CAR THAT PEOPLE WOULD BUY WITH OR WITHOUT A GOVERNMENT DECREE G. M.'S IMPACT HE SAID COULD HAVE BEEN SUCH A CAR FRANKLY HE SAID WE HAD A CAR THAT WAS PRETTY NEAT LONDON STOCKS STAGED A LATE TURNAROUND TO END ONLY SLIGHTLY LOWER RECOUPING MOST OF THE DAY'S LOSSES FROM PROFIT TAKING AND ECONOMIC WORRIES FRANKFURT SHARES AFTER FALLING MORE THAN THREE PERCENT LAST WEEK POSTED SMALL GAINS FROM BARGAIN HUNTING WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED TWELVE POINT NINE NINE DOWN ONE POINT FIVE SEVEN REFLECTING LOWER ASIA SLASH PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS CASINO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT TWO HUNDRED FIVE POINT ONE EIGHT UP TWO POINT EIGHT THREE OR ONE POINT FOUR PERCENT WITH RESORTS OF MALAYSIA POSTING A FIVE POINT ONE PERCENT GAIN IN LOCAL CURRENCY FISHING STOCKS TRAILED AT SIXTY NINE POINT FIVE SEVEN DOWN THREE POINT THREE FOUR OR FOUR POINT SIX PERCENT WITH TAIYO FISHERY OF JAPAN DOWN SIX POINT THREE PERCENT IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX EDGED DOWN TWO POINT EIGHT POINTS TO THREE THOUSAND FOUR HUNDRED EIGHTY ONE POINT FOUR AFTER HITTING A SESSION LOW OF THREE THOUSAND FOUR HUNDRED SIXTY TWO POINT THREE THE F. T. THIRTY STOCK INDEX ROSE TWO POINT NINE POINTS TO TWO THOUSAND SIX HUNDRED SEVENTY ONE POINT FOUR VOLUME WAS EIGHT HUNDRED POINT TWO MILLION SHARES DOWN FROM NINE HUNDRED SEVENTY NINE POINT NINE MILLION SHARES IN THE PREVIOUS SESSION MUCH OF THE LATE REBOUND WAS ATTRIBUTED TO ARBITRAGE TRADING BETWEEN THE STOCK AND FUTURES MARKETS STOCK PRICES FELL ON SELLING OF BASKETS OF STOCKS AND BUYING OF FUTURES BUT THIS THEN LEFT MARKET MAKERS SHORT OF EQUITIES AND BUYING IN TURN PUSHED PRICES BACK UP FOR MOST OF THE LONDON SESSION STOCKS WERE DOWN BECAUSE OF PROFIT TAKING FRESH EVIDENCE THAT THE BRITISH GOVERNMENT PROBABLY WILL DEFER CUTTING BASE LENDING RATES AND POLITICAL WORRIES ABOUT HIGHER TAXES A BRITISH INDUSTRY GROUP SAID THAT ORDERS AND PRODUCTION IN THE PAST FOUR MONTHS ROSE AT THEIR STRONGEST PACE IN ALMOST FIVE YEARS AND THAT BUSINESS CONFIDENCE STRENGTHENED FOR THE FIFTH QUARTER IN A ROW THIS DEFLATED HOPES FOR REDUCED INTEREST RATES AND THE MARKET WAS NERVOUS ABOUT WEEKEND NEWS THAT TAXES UNDER THE GOVERNING CONSERVATIVE PARTY WILL BE HIGHER THIS YEAR THAN EXPECTED IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX WHICH PLUNGED FORTY POINT FIVE NINE POINTS FRIDAY ROSE FOUR POINT FOUR OH TO TWO THOUSAND EIGHTY POINT OH ONE AFTER THE MARKET'S RECENT DECLINES PRICES WERE CONSIDERED ATTRACTIVE ONCE AGAIN HEAVY VOLUME IN THE D. A. X. FUTURES MARKET ALSO HELPED PULL BLUE CHIPS HIGHER THE BOURSE ALSO MAY HAVE BEEN BOOSTED BY A GOLDMAN SACHS BUY RECOMMENDATION FOR THE GERMAN MARKET IN PARIS STOCKS NOT ONLY MANAGED AN AFTERNOON TURNAROUND REVERSING EARLY LOSSES BUT ENDED WITH A SHARP GAIN OF ONE POINT FOUR PERCENT AS YESTERDAY MARKED THE END OF THE JANUARY TRADING ACCOUNT THE EARLY DROP FROM PROFIT TAKING HAD BEEN EXPECTED THE COMEBACK BEGAN AFTER A WESTERN GERMAN STATE'S INFLATION DATA FUELED HOPES THAT THE GERMAN AND FRENCH CENTRAL BANKS WILL BE LESS RELUCTANT TO CUT INTEREST RATES THE BUYING MOMENTUM CAUSED INVESTORS WITH SHORT OR OVERSOLD POSITIONS TO BUY TO AVOID OR CUT LOSSES A HERD BUYING MENTALITY PREVAILED IN THE SESSION'S FINAL TWO HOURS IN MILAN SHARES STRENGTHENED LED BY INDUSTRIAL ISSUES WHICH WON INVESTORS' FOCUS IN A CONTINUING SHIFT FROM BANKING AND INSURANCE STOCKS TO CYCLICAL PLAYS ON HOPES FOR SIGNS OF CORPORATE RECOVERY IN MADRID EQUITIES DROPPED AS THE MARKET TOOK A REST FROM A RECENT BULL RUN AND INVESTORS REELED IN PROFITS IN STOCKHOLM PRICES FINISHED HIGHER RECOVERING FROM A WEAK OPENING WITH GAINERS PACED BY BLUE CHIPS AND FOREST PRODUCTS ISSUES IN SYDNEY SHARES DROPPED ONE POINT TWO PERCENT MAINLY BECAUSE OF WEAKNESS IN THE PRICE OF GOLD AND THE TOKYO MARKET'S FREE FALL MONDAY AND FEARS IT WOULD SINK FURTHER IN HONG KONG INVESTORS SHOOK OFF THE TOKYO DEBACLE AND STOCKS CLIMBED ONE POINT TWO PERCENT THOUGH THE KEY INDEX FAILED TO HANG ON TO GAINS FROM AN INITIAL SURGE CORPORATE DEVELOPMENTS AFFECTING THE HOTEL AND PROPERTY SECTORS HELPED BOOST PRICES LED BY BUYING BY LOCAL AND JAPANESE INVESTORS THOUGH THIS MASKED SIZABLE SELLING IN MANY STOCKS IN SINGAPORE PRICES ENDED MIXED THOUGH THE MAIN INDEX JUMPED ONE POINT SIX PERCENT ON BLUE CHIP BUYING SENTIMENT REMAINED CAUTIOUS AS TECHNICAL FACTORS CONTINUED TO DRIVE THE MARKET'S DIRECTION IN KUALA LUMPUR THE BENCHMARK GAUGE EDGED UP BUT THIS SUPPORT FOR BLUE CHIPS DIDN'T HELP THE BROADER MARKET WHICH WAS GENERALLY LOWER BUT IN SEOUL EQUITIES ADVANCED ONE POINT TWO PERCENT SUPPORTED BY SOLID LIQUIDITY AS INVESTORS' DEPOSITS WITH BROKERAGE HOUSES MARKED A RECORD HIGH FOUR POINT THREE TRILLION WON FIVE POINT THREE ONE BILLION DOLLARS INSTITUTIONAL INVESTORS RESUMED MAKING AGGRESSIVE PURCHASES AND PRICES ROSE ACROSS THE BOARD AND IN BANGKOK STOCKS RALLIED THREE POINT EIGHT PERCENT THOUGH TURNOVER WAS SLUGGISH BARGAIN HUNTERS SNAPPED UP FINANCIAL BLUE CHIPS LEADING TO GAINS IN OTHER SECTORS AMONG CORPORATE DEVELOPMENTS IN LONDON BRITISH AEROSPACE SOARED FIFTEEN POINT SEVEN FIVE PENCE OR THREE POINT SEVEN PERCENT TO FOUR HUNDRED FORTY THREE POINT SEVEN FIVE PENCE SIX DOLLARS AND SIXTY TWO CENTS ON A WEEKEND NEWS REPORT IN BRITAIN THAT THE DEFENSE CONTRACTOR AND AUTO MAKER WAS CONSIDERING SELLING AN ADDITIONAL TWENTY PERCENT OF ITS ROVER VEHICLE OPERATION TO HONDA WHICH WOULD DOUBLE THE JAPANESE AUTO MAKER'S HOLDING TO FORTY PERCENT AND GIVE IT EFFECTIVE MANAGEMENT CONTROL BUT BRITISH AEROSPACE YESTERDAY CALLED THAT REPORT QUOTE SPECULATION QUOTE 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END GROUPE VIDEOTRON LTEE UNVEILED AN AMBITIOUS PLAN TO PROVIDE INTERACTIVE TELEVISION TO THIRTY FOUR THOUSAND CANADIAN HOMES BY NINETEEN NINETY FIVE THE NEW SYSTEM WHICH WILL PROVIDE HOME BANKING AND SHOPPING SERVICES WILL BE RUN BY A CONSORTIUM THAT INCLUDES HEARST CORPORATION INVESTMENT IN THE SYSTEM IS EXPECTED TO TOTAL SEVEN HUNDRED FIFTY MILLION DOLLARS CANADIAN DOLLARS FIVE HUNDRED SEVENTY TWO MILLION U. S. DOLLARS DURING THE NEXT FIVE TO EIGHT YEARS ABOUT TWO HUNDRED FIFTY MILLION CANADIAN DOLLARS WOULD COME FROM CONSORTIUM MEMBERS WITH THE REST TO BE GENERATED BY THE CONSORTIUM'S OPERATIONS PROJECT PARTNERS SAY WHAT DISTINGUISHES THEIR EFFORT FROM OTHER ANNOUNCED EXPERIMENTS IS ITS SIZE AND PRICE THE SERVICE WILL BE FREE TO CONSUMERS COSTS WILL BE BORNE BY THE COMPANIES THAT PROVIDE THE SERVICES AND BY ADVERTISERS THE SERVICE WILL BEGIN IN QUEBEC PROVINCE IN THE AREA NEAR CHICOUTIMI AND EXPAND TO ONE POINT FOUR MILLION HOMES IN THE QUEBEC CITY AND MONTREAL AREAS BETWEEN NINETEEN NINETY SIX AND TWO THOUSAND TWO VIDEOTRON CANADA'S SECOND BIGGEST CABLE OPERATOR ALREADY HAS MORE THAN TWO HUNDRED TWENTY THOUSAND SUBSCRIBERS FOR ITS VIDEOWAY INTERACTIVE SYSTEM IN QUEBEC PROVINCE THE SYSTEM LAUNCHED IN NINETEEN NINETY ENABLES VIEWERS TO PLAY VIDEO GAMES OR CONTROL CAMERA ANGLES FOR SPORTING EVENTS BY MANIPULATING DATA FED INTO A DECODER BOX THE NEW SYSTEM WHICH INITIALLY WILL BE MOSTLY IN FRENCH WILL ENABLE USERS TO PAY BILLS BROWSE THROUGH VIDEO CATALOGS OR BUY GOODS AND SERVICES THE SERVICE WILL PROVIDE A MAGNETIC CARD READER AND PRINTER USERS EVENTUALLY MAY BE ABLE TO USE THE SYSTEM TO PROGRAM THEIR HOME HEATING AND LIGHTING CONSUMERS GENERALLY WON'T PAY HOOK UP OR USAGE CHARGES FOR THE SYSTEM THOUGH THERE COULD BE A MINIMAL FEE TO COVER SERVICING OF TERMINALS THE FOUNDING PARTNERS INCLUDE NATIONAL BANK OF CANADA HYDRO QUEBEC THE PROVINCE'S ELECTRIC UTILITY THE CANADIAN POSTAL SERVICE AND QUEBEC'S LOTTERY AUTHORITY HEARST WITH A TEN PERCENT STAKE SAID IT WILL PROVIDE AN ELECTRONIC YELLOW PAGES DIRECTORY AND A TRANSACTION SERVICE FOR RESTAURANT RESERVATIONS AND THEATER TICKET PURCHASES MORE THAN SEVENTY FIVE COMPANIES HAVE SIGNED UP TO SELL PRODUCTS AND SERVICES A HEARST SPOKESMAN SAID INCLUDING COCA COLA COMPANY AVON PRODUCTS INCORPORATED AND SEARS CANADA A UNIT OF SEARS ROEBUCK AND COMPANY VIEWERS AT HOME WILL BE ABLE TO LOOK AT PHOTOGRAPHS OF MERCHANDISE FROM SEARS OR AVON FOR EXAMPLE AND ORDER MERCHANDISE DIRECTLY A RECEIPT WILL BE PRINTED OUT IMMEDIATELY BY THE SET TOP BOX THE PROJECT IS AN IMPORTANT ONE FOR CLOSELY HELD HEARST MARKING THE COMPANY'S FIRST MAJOR VENTURE IN THE EMERGING MULTIMEDIA MARKET HEARST WHICH PUBLISHES NEWSPAPERS BOOKS AND MAGAZINES AND OWNS RADIO AND TELEVISION STATIONS FORMED A NEW MEDIA GROUP LESS THAN A YEAR AGO HEADED BY ALFRED C. SIKES FORMER CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION FRANK A. BENNACK JUNIOR HEARST'S CHIEF EXECUTIVE OFFICER MADE IT CLEAR AT A NEW YORK NEWS CONFERENCE THAT HEARST'S DOWNSIDE RISK IS LIMITED AS A TEN PERCENT OWNER IN THE NEW VENTURE IT IS PUTTING UP ABOUT TWENTY MILLION DOLLARS IT WILL SPEND ADDITIONAL MONEY TO DEVELOP THE ELECTRONIC BUSINESS DIRECTORY SAID MR. BENNACK THOUGH HE DECLINED TO ESTIMATE THE COST MR. SIKES SAID THAT HEARST'S DIRECTORY WILL BE SIMILAR TO QUOTE A YELLOW PAGES BUT BUSINESSES LISTED IN IT CAN UPDATE INFORMATION DAILY PROVIDE IMAGES AND DELIVER COUPONS ON A PRINTER QUOTE AVAILABLE AS PART OF THE HARDWARE U. S. A. WASTE SERVICES INCORPORATED SAID IT AGREED TO ACQUIRE HOUSTON BASED ENVIROFIL INCORPORATED IN EXCHANGE FOR STOCK VALUED AT ONE HUNDRED THIRTY NINE POINT FIVE MILLION DOLLARS BOTH COMPANIES ARE IN THE SOLID WASTE COLLECTION AND DISPOSAL BUSINESS THE COMBINED ENTITY WILL RETAIN U. S. A. WASTE'S NAME AND GENERATE ANNUAL REVENUE OF ABOUT ONE HUNDRED SEVENTY FIVE MILLION DOLLARS U. S. A. WASTE SAID UNDER THE AGREEMENT ENVIROFIL SHAREHOLDERS WILL RECEIVE ONE SHARE OF U. S. A. WASTE'S COMMON STOCK FOR EVERY FIVE SHARES OF ENVIROFIL'S COMMON STOCK OUTSTANDING THE TRANSACTION WHICH IS SUBJECT TO SHAREHOLDER APPROVAL WILL INCREASE U. S. A. WASTE'S STOCK OUTSTANDING TO TWENTY POINT EIGHT MILLION COMMON SHARES FROM ELEVEN POINT FIVE MILLION COMMON SHARES DONALD F. MOOREHEAD JUNIOR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF U. S. A. WASTE SAID THE ACQUISITION WILL POSITION U. S. A. WASTE FOR WHAT THE COMPANY EXPECTS TO BE A CONSOLIDATION IN THE SOLID WASTE INDUSTRY AFTER THE MERGER MR. MOOREHEAD FORTY THREE YEARS OLD WILL CONTINUE IN HIS POSTS ENVIROFIL'S PRESIDENT DAVID SUTHERLANDYOEST THIRTY SEVEN WILL BE PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMBINED COMPANY U. S. A. WASTE'S CHIEF FINANCIAL OFFICER EARL E. DEFRATES FIFTY WILL CONTINUE IN THAT POSITION U. S. A. WASTE SHARES CLOSED AT FIFTEEN DOLLARS UP FIFTY CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ENVIROFIL ROSE TWELVE POINT FIVE CENTS TO THREE POINT ONE TWO FIVE DOLLARS IN NASDAQ STOCK MARKET TRADING VOLKSWAGEN A. G.'S SPANISH SUBSIDIARY SEAT S. A. CONFIRMED THAT ITS FORMER CHAIRMAN WITHHELD FULL INFORMATION ABOUT THE EXTENT OF THE COMPANY'S FINANCIAL CRISIS FROM V. W. BUT THE UNIT OFFERED NO EXPLANATIONS AND REMAINED TIGHT LIPPED ABOUT THE THINLY VEILED THREATS FROM GERMAN HEADQUARTERS OF POSSIBLE LEGAL ACTION HIGHLIGHTING A BREAKDOWN IN REPORTING AND CONTROL MECHANISMS BETWEEN V. W. AND ITS UNITS THE FIASCO AT SEAT PUSHED THE GROUP INTO A LOSS OF TWO POINT THREE BILLION MARKS ONE POINT THREE ONE BILLION DOLLARS LAST YEAR AND IS NOW THE FOCUS OF A BATTLE BETWEEN V. W. CHAIRMAN FERDINAND PIECH AND THE STRUGGLING UNIT ALREADY ANGERED BY THE QUOTE EARNINGS SHOCK QUOTE FROM SEAT WHICH FORCED HIM TO EAT HIS OFT REPEATED PLEDGES OF GETTING THE V. W. GROUP OUT OF THE RED IN NINETEEN NINETY THREE MR. PIECH NOW HAS HIRED EXTERNAL AUDITORS TO INVESTIGATE HOW AND WHY DETAILS OF SEAT'S FINANCIAL SITUATION WERE HIDDEN FROM THE PARENT COMPANY ONCE THE RESULTS OF AN AUDIT ARE COMPLETE WE WILL HAVE TO TALK ABOUT THE CONSEQUENCES AND POSSIBLY WHAT LEGAL ACTIONS MUST BE TAKEN SAID A V. W. SPOKESMAN IN WOLFSBURG GERMANY WHERE V. W. IS BASED OVER THE WEEKEND MR. PIECH TOLD SPANISH NEWSPAPER EL PAIS THAT HE CONSIDERED THE EVENTS DELIBERATE MISINFORMATION REPRESENTING NOT ONLY BAD MANAGEMENT BUT AN OFFENSE WITH CRIMINAL CONSEQUENCES FORMER SEAT CHAIRMAN JUAN ANTONIO DIAZ ALVAREZ WAS UNAVAILABLE TO COMMENT ACCORDING TO A PRELIMINARY INTERNAL V. W. INVESTIGATION A REPORT WARNING THAT SEAT WAS TECHNICALLY BANKRUPT WAS PREPARED BY THEN FINANCE DIRECTOR EBERHARDT MUELLER IN JUNE THE REPORT WHICH PREDICTED THAT LOSSES FOR THE YEAR WOULD EXCEED THE COMPANY'S SHARE CAPITAL OF EIGHTY BILLION PESETAS FIVE HUNDRED FIFTY SEVEN POINT THREE MILLION DOLLARS HOWEVER WASN'T PRESENTED TO A JUNE TWENTY THIRD MEETING OF SEAT'S SUPERVISORY BOARD INSTEAD V. W. MANAGERS AT THAT MEETING WERE TOLD TO EXPECT A TWELVE BILLION PESETAS SHORTFALL V. W. HEADQUARTERS WAS UNAWARE OF THE EXTENT OF THE PROBLEMS UNTIL SEPTEMBER SEAT REQUIRED A TWO POINT TWO BILLION MARK BAILOUT FROM V. W. MR. MUELLER WHOSE REPORT V. W. DISCOVERED IN OCTOBER WAS SENT INTO RETIREMENT BY SEAT MANAGEMENT AFTER THE JUNE BOARD MEETING ALTHOUGH UNABLE TO PROVIDE HIS EXACT AGE SEAT SAID IT WAS TIME FOR MR. MUELLER TO RETIRE MR. PIECH'S CRUSADE TO GET TO THE BOTTOM OF THE SEAT QUESTION COMES AGAINST THE BACKDROP OF SOME RECENT CORPORATE BOMBSHELLS IN SPAIN AND GERMANY NAMELY THE NEAR BANKRUPTCY AT GERMAN CONGLOMERATE METALLGESELLSCHAFT A. G. AND THE STATE TAKEOVER IN SPAIN OF BANCO ESPANOL DE CREDITO OR BANESTO THE CRISIS AT METALLGESELLSCHAFT WHERE THE SUPERVISORY BOARD APPARENTLY WAS UNAWARE OF MOUNTING LOSSES AND SPECULATIVE DEALS HAS CREATED CONCERN ABOUT WHETHER THESE SUPERVISORY BODIES AT GERMAN CORPORATIONS ARE DOING THEIR JOBS OF OVERSEEING MANAGEMENT AND PROTECTING SHAREHOLDER INTERESTS BANESTO'S PROBLEMS ARISING SIX MONTHS AFTER THE BANK LAUNCHED SPAIN'S BIGGEST EVER RIGHTS ISSUE SIMILARLY RAISE QUESTIONS ABOUT MARKET SUPERVISION AND ACCOUNTING PRACTICES THE PUBLIC AIRING OF MR. PIECH'S GRIPES AGAINST MR. DIAZ ALVAREZ ALSO SIGNALS THE DESPERATION AT V. W. EUROPE'S LARGEST CAR MAKER RANKS AS ONE OF ITS MOST TROUBLED TRYING TO CLAW ITS WAY BACK INTO THE BLACK IN THE FACE OF A DISMAL EUROPEAN CAR MARKET AND PLUMMETING SALES IN NINETEEN NINETY THREE SALES AT THE V. W. GROUP PLUNGED TWENTY POINT ONE PERCENT STEEPER THAN THE FIFTEEN POINT ONE PERCENT DROP FOR THE EUROPEAN MARKET AS A WHOLE AND V. W.'S MARKET SHARE FELL TO SIXTEEN POINT FOUR PERCENT FROM SEVENTEEN POINT FIVE PERCENT IN NINETEEN NINETY TWO IN FRANKFURT TRADING YESTERDAY V. W. LOST SIX POINT FIVE OH MARKS TO FOUR HUNDRED TWENTY FOUR MARKS THE ENTERTAINMENT CONCERN RAISED ITS QUARTERLY DIVIDEND TWENTY PERCENT TO SEVEN POINT FIVE CENTS FROM SIX POINT TWO FIVE CENTS PAYABLE MAY TWENTIETH TO STOCK OF RECORD APRIL FIFTEENTH THE INCREASE DISNEY'S SEVENTH IN SEVEN YEARS CAME DESPITE FINANCIAL PROBLEMS AT THE EURO DISNEY THEME PARK THAT CHAIRMAN MICHAEL EISNER HAS CHARACTERIZED AS QUOTE DREADFUL QUOTE A COMPANY SPOKESMAN NOTED THAT WHILE NET INCOME FOR THE SEPTEMBER THIRTIETH YEAR PLUNGED PRIMARILY BECAUSE OF A THREE HUNDRED SEVENTY ONE POINT FIVE MILLION DOLLAR ACCOUNTING CHARGE RELATED TO THE TROUBLED PARK OUTSIDE PARIS OUR THREE BASIC BUSINESS OPERATIONS GREW IN THE AREA OF SIXTEEN PERCENT TO TWENTY SIX PERCENT STILL EAGER FOR MORE DIRT ON TONYA HARDING AND NANCY KERRIGAN SUFFERING BOBBITT WITHDRAWAL NOW THAT THE TWO TRIALS ARE OVER REST ASSURED THE INSTANT BOOKS ARE ON THE WAY SAINT MARTIN'S PRESS ANNOUNCED THAT IT PLANS A QUICKIE UNAUTHORIZED BIO OF ATTACKED ICE SKATER NANCY KERRIGAN QUOTE DREAMS OF GOLD THE NANCY KERRIGAN STORY QUOTE WILL BE AVAILABLE FEBRUARY FIRST BEFORE THE NINETEEN NINETY FOUR WINTER OLYMPIC GAMES BEGIN IN LILLEHAMMER NORWAY THE ONE HUNDRED NINETY TWO PAGE PAPERBACK IS BEING WRITTEN BY NEW YORK SPORTSWRITERS WAYNE COFFEY AND FILIP BONDY THE PUBLISHER SAID ZEBRA BOOKS A PUBLISHER MOSTLY OF ROMANCE NOVELS SAID IT PLANS TO PUBLISH BOTH A BOBBITT BOOK AND A BOOK ABOUT TONYA HARDING THE SKATER WHOSE ENTOURAGE ALLEGEDLY HAD HER RIVAL SKATER ATTACKED BOTH BOOKS WILL BE IN STORES BY MID FEBRUARY SAID WALTER ZACHARIUS CHAIRMAN OF ZEBRA CALLED THE BOBBITT CASE YOU DECIDE ZEBRA'S BOOK WILL BE NOTHING MORE THAN A TRANSCRIPT OF LORENA BOBBITT'S TRIAL FOR THE MUTILATION OF HUSBAND JOHN WITH A HASTILY WRITTEN FOREWARD ZEBRA'S OTHER BOOKS IS THIN ICE THE COMPLETE UNCENSORED STORY OF TONYA HARDING AMERICA'S BAD GIRL OF ICE SKATING THE BOOK IS BEING WRITTEN BY TWO JOURNALISTS WHO HAVE FOLLOWED THE SCANDAL MR. ZACHARIUS SAID FOURTH QUARTER NET INCOME AT TEXACO INCORPORATED AND AMOCO CORPORATION ROSE BECAUSE OF EXTRAORDINARY ITEMS THAT PROPPED UP THEIR NUMBERS BUT SHARPLY LOWER CRUDE OIL PRICES DURING THE LAST FEW MONTHS OF NINETEEN NINETY THREE DROVE OPERATING EARNINGS LOWER FOR TEXACO AND AMOCO AND FOR ATLANTIC RICHFIELD COMPANY WHICH POSTED A LOSS ASHLAND OIL INCORPORATED'S NET INCOME AND OPERATING EARNINGS BOTH ROSE BUT AMERADA HESS CORPORATION SWUNG TO A LOSS IN ITS FISCAL FIRST QUARTER ENDED DECEMBER THIRTY FIRST CRUDE OIL PRICES BEGAN TO WEAKEN LAST SUMMER AS IT BECAME APPARENT THAT GLOBAL SUPPLIES OF OIL FAR EXCEEDED DEMAND AND FAILURE BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO AGREE TO A PRODUCTION CUT AT ITS NOVEMBER MEETING EXACERBATED THE SITUATION CAUSING THE PRICE DECLINE TO QUICKEN OUTPUT FROM PRODUCERS OUTSIDE OPEC HAS ALSO GROWN IN RECENT MONTHS ESPECIALLY IN THE NORTH SEA WHERE A NUMBER OF NEW OIL FIELDS STARTED UP DURING THE LAST HALF OF THE YEAR THE RESULT WAS A DROP IN ENERGY PRICES THAT HURT MOST PRODUCERS BUT HELPED SOME OIL COMPANIES WITH BIG REFINING AND MARKETING OPERATIONS QUOTE CRUDE OIL PRICES DURING THE FOURTH QUARTER OF NINETEEN NINETY THREE AVERAGED ABOUT FOUR DOLLARS PER BARREL BELOW THE FOURTH QUARTER OF NINETEEN NINETY TWO AND U. S. NATURAL GAS PRICES THOUGH STRONG WERE ALSO BELOW THE COMPARABLE NINETEEN NINETY TWO QUARTER QUOTE SAID AMOCO'S CHIEF EXECUTIVE OFFICER H. LAURANCE FULLER TEXACO INCORPORATED TEXACO SAID ITS FOURTH QUARTER NET INCOME CLIMBED EIGHT POINT THREE PERCENT TO THREE HUNDRED THIRTY NINE MILLION DOLLARS OR ONE DOLLAR AND TWENTY ONE CENTS A SHARE FROM THE YEAR AGO THREE HUNDRED THIRTEEN MILLION DOLLARS OR ONE DOLLAR AND ELEVEN CENTS A SHARE WHICH WAS DEPRESSED BY A CHARGE IN THE LATEST PERIOD THE COMPANY HAD A GAIN FROM TAX BENEFITS RELATED TO ASSET SALES REVENUE SLIPPED NINE POINT FOUR PERCENT TO EIGHT POINT FIVE EIGHT BILLION DOLLARS FROM NINE POINT FOUR EIGHT BILLION DOLLARS QUARTERLY OPERATING EARNINGS HOWEVER FELL THIRTY FOUR PERCENT TO TWO HUNDRED EIGHTY FOUR MILLION DOLLARS AS OIL PRICES SLUMPED THE WHITE PLAINS N. Y. COMPANY SAID NET INCOME FOR NINETEEN NINETY THREE GREW TWENTY ONE PERCENT TO ONE POINT TWO SIX BILLION DOLLARS OR FOUR DOLLARS AND FORTY SEVEN CENTS A SHARE FROM ONE POINT OH FOUR BILLION DOLLARS OR THREE DOLLARS AND SIXTY THREE CENTS A SHARE COST CUTTING BENEFITS ACHIEVED IN THE EXPLORATION AND PRODUCTION SECTOR IN THE U. S. DURING THE FOURTH QUARTER WERE MORE THAN OFFSET BY TUMBLING OIL PRICES OVERSEAS QUARTERLY EARNINGS FROM THIS SECTOR OF THE BUSINESS FELL SHARPLY EVEN THOUGH PRODUCTION GREW EIGHTEEN PERCENT PRIMARILY IN INDONESIA AND THE NORTH SEA BUT TEXACO'S BOTTOM LINE GOT SOME HELP FROM STRONG PROFIT MARGINS IN ITS U. S. RETAIL MARKETING BUSINESS THE COMPANY SAID THAT GASOLINE SALES IN THE U. S. GREW DURING THE FOURTH QUARTER FROM THE PREVIOUS YEAR'S LEVEL QUARTERLY EARNINGS FROM THE REFINING AND MARKETING SECTORS IN THE U. S. AND OVERSEAS JUMPED SUBSTANTIALLY AMOCO SAID ITS FOURTH QUARTER NET EARNINGS OF FIVE HUNDRED EIGHTY FOUR MILLION DOLLARS OR ONE DOLLAR AND SEVENTEEN CENTS A SHARE GREW BY SIX POINT SIX PERCENT FROM FIVE HUNDRED FORTY EIGHT MILLION DOLLARS OR ONE DOLLAR AND TEN CENTS A SHARE THE LATEST PERIOD'S NUMBERS INCLUDED A GAIN FROM THE SALE OF ITS STAKE IN A CANADIAN ENERGY COMPANY REVENUE EDGED ABOUT TWO PERCENT HIGHER TO SEVEN POINT THREE EIGHT BILLION DOLLARS NET EARNINGS FOR NINETEEN NINETY THREE WERE REPORTED AT ONE POINT EIGHT TWO BILLION DOLLARS OR THREE DOLLARS AND SIXTY SIX CENTS A SHARE AGAINST A LOSS OF SEVENTY FOUR MILLION DOLLARS OR A NEGATIVE FIFTEEN CENTS A SHARE MR. FULLER AMOCO CHAIRMAN SAID THAT THE COMPANY HAS CUT EXPENSES BY SIX HUNDRED MILLION DOLLARS OVER THE PAST EIGHTEEN MONTHS AND IS CONTINUING TO SLASH COSTS TO HELP OFFSET THE LOWER CRUDE PRICES HELPING TO PROP UP THE BOTTOM LINE DURING THE FOURTH QUARTER WERE REFINING AND MARKETING OPERATIONS WHICH SHOWED EARNINGS JUMPING TO TWO HUNDRED FIFTY NINE MILLION DOLLARS FROM TWO HUNDRED TWO MILLION DOLLARS EARNINGS FROM CHEMICAL OPERATIONS ALSO GREW AMOCO ALSO SAID YESTERDAY THAT OUTPUT FROM ITS WHITING INDIANA REFINERY HAS BEEN REDUCED BECAUSE OF DAMAGE FROM THREE WEATHER RELATED FIRES WHICH FLARED UP ON SATURDAY AND SUNDAY THE COMPANY SAID IT IS ALLOCATING SUPPLIES TO CUSTOMERS UNITS AFFECTED BY THE FIRES SHOULD RETURN TO OPERATION WITHIN SEVERAL WEEKS THE COMPANY SAID ARCO REPORTED A NET LOSS OF THREE HUNDRED THIRTY MILLION DOLLARS OR TWO DOLLARS AND SIX CENTS A SHARE AGAINST EARNINGS OF THREE HUNDRED SEVENTY TWO MILLION DOLLARS OR TWO DOLLARS AND THIRTY CENTS A SHARE DURING THE SAME PERIOD A YEAR EARLIER REVENUE SLIPPED BY FOUR POINT FOUR PERCENT TO FOUR POINT SEVEN SIX BILLION DOLLARS FROM FOUR POINT NINE EIGHT BILLION DOLLARS FOR NINETEEN NINETY THREE ARCO REPORTED NET INCOME FELL SIXTY SIX PERCENT TO TWO HUNDRED SIXTY NINE MILLION DOLLARS OR ONE DOLLAR AND SIXTY SIX CENTS A SHARE FROM EIGHT HUNDRED ONE MILLION DOLLARS OR FOUR DOLLARS AND NINETY SIX CENTS A SHARE IN NINETEEN NINETY TWO THIS PAST YEAR'S QUARTERLY LOSS IS THE RESULT OF A BIG CHARGE TAKEN FOR THE RESTRUCTURING OF ITS OIL AND GAS OPERATIONS IN THE LOWER FORTY EIGHT STATES ARCO'S OIL PRODUCTION SLIPPED IN THE LOWER FORTY EIGHT PARTLY AS THE RESULT OF PROPERTY SALES OUTPUT IN ALASKA ALSO CONTINUED TO DECLINE ALTHOUGH PRODUCTION FROM THE NEW POINT MCINTYRE FIELD HELPED TO SLOW THE DECLINE THERE THE PRICE AT WHICH ARCO COULD SELL ITS U. S. CRUDE DROPPED TO NINE DOLLARS AND EIGHTY NINE CENTS A BARREL DURING THE FOURTH QUARTER FROM THIRTEEN DOLLARS AND TWENTY FIVE CENTS DURING THE SAME PERIOD A YEAR AGO BUT PROFITABILITY FROM THE COMPANY'S REFINING AND MARKETING SECTOR GREW WHILE EARNINGS FROM COAL OPERATIONS JUMPED PROFITABILITY AT THE CHEMICALS BUSINESSES ALSO INCREASED ARCO ALSO REPORTED YESTERDAY THAT ITS DIRECTORS HAD APPROVED A CAPITAL BUDGET OF ONE POINT NINE BILLION DOLLARS SLIGHTLY LESS THAN LAST YEAR'S BUDGET OF TWO POINT ONE BILLION DOLLARS ABOUT SIXTY PERCENT OR ONE POINT ONE BILLION DOLLARS OF THIS YEAR'S OUTLAY WILL GO TO EXPLORATION AND PRODUCTION ANOTHER FOUR HUNDRED THIRTY MILLION DOLLARS WILL GO TO HELP REFINING AND MARKETING BUSINESSES COMPLY WITH CLEAN AIR REGULATIONS THAT GO INTO EFFECT IN NINETEEN NINETY FIVE AND NINETEEN NINETY SIX ASHLAND'S FISCAL FIRST QUARTER PROFITABILITY JUMPED ONE HUNDRED THIRTY TWO PERCENT TO FIFTY EIGHT MILLION DOLLARS OR NINETY CENTS A SHARE FROM TWENTY FOUR POINT SEVEN MILLION DOLLARS OR FORTY ONE CENTS A SHARE REVENUE WAS ALMOST FLAT AT TWO POINT FIVE EIGHT BILLION DOLLARS ASHLAND'S FISCAL YEAR ENDS SEPTEMBER THIRTIETH ASHLAND SAID ITS PROFITABILITY IS BASED LARGELY ON VERY LUCRATIVE REFINERY PROFIT MARGINS ACCORDING TO A SPOKESMAN THE COMPANY MADE A LOT OF MONEY BECAUSE OF TIGHT SUPPLIES OF LOW SULFUR DIESEL FUEL IN THE U. S. DURING THE FOURTH QUARTER CLEAN AIR REGULATIONS MANDATED THE USE OF THE LOW SULFUR VARIETY OF THE FUEL EARLY DURING THE QUARTER BUT MOST REFINERS HAD INADEQUATE SUPPLIES BUT THE SPOKESMAN SAID ASHLAND HAD RETOOLED ITS REFINERIES EARLIER IN THE YEAR TO MEET DEMAND FOR THAT FUEL WHICH IS USED MOSTLY BY TRUCKS EARNINGS FROM RETAIL GASOLINE SALES ALSO GREW JUMPING NINETEEN PERCENT TO TWENTY ONE MILLION DOLLARS ASHLAND'S CHIEF EXECUTIVE OFFICER JOHN HALL SAID THAT THIS MOST RECENT FIRST QUARTER REPRESENTS THE BEST PERFORMANCE SINCE THE SAME PERIOD DURING NINETEEN EIGHTY EIGHT AMERADA HESS REPORTED A FOURTH QUARTER NET LOSS OF ONE HUNDRED THIRTY THREE POINT SIX MILLION DOLLARS OR ONE DOLLAR AND FORTY FIVE CENTS A SHARE COMPARED WITH PROFIT OF SEVENTEEN POINT NINE MILLION DOLLARS OR TWENTY ONE CENTS A SHARE DURING THE SAME PERIOD OF NINETEEN NINETY TWO REVENUE GREW ONE POINT NINE PERCENT TO ONE POINT SIX FIVE BILLION DOLLARS FROM ONE POINT SIX TWO BILLION DOLLARS THE RESULTS INCLUDE SPECIAL CHARGES RELATED TO CLOSING DOWN THE COMPANY'S REFINERY IN PURVIS MISSISSIPPI AND WRITING DOWN CERTAIN EXPLORATION AND PRODUCTION ASSETS EARNINGS FROM THIS SECTOR SLUMPED TO SEVEN POINT NINE MILLION DOLLARS FROM ONE HUNDRED SIX POINT ONE MILLION DOLLARS REFINING AND MARKETING OPERATIONS SHOWED A LOSS OF ONE HUNDRED ELEVEN MILLION DOLLARS FOR THE YEAR AMERADA REPORTED A NET LOSS OF TWO HUNDRED SIXTY EIGHT POINT TWO MILLION DOLLARS OR TWO DOLLARS AND NINETY CENTS A SHARE COMPARED WITH NET INCOME OF SEVEN POINT FIVE MILLION DOLLARS OR NINE CENTS A SHARE IN NINETEEN NINETY TWO STOCK PRICES SLIPPED BUT CONTINUED STRENGTH IN MANY ECONOMICALLY SENSITIVE ISSUES BLUNTED THE LOSSES THE DOW JONES INDUSTRIAL AVERAGE EASED ONE POINT SIX NINE OR ZERO POINT ZERO FOUR PERCENT TO THREE THOUSAND NINE HUNDRED TWELVE POINT SEVEN NINE ITS FIRST CLOSE BELOW A NEW HIGH IN SIX SESSIONS BROAD BASED INDEXES WHICH HAVE LAGGED BEHIND THE INDUSTRIALS OF LATE TUMBLED FURTHER THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX SKIDDED TWO POINT SEVEN FIVE OR ZERO POINT FIVE EIGHT PERCENT TO FOUR HUNDRED SEVENTY ONE POINT NINE SEVEN AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL ONE POINT THREE SEVEN OR ZERO POINT FIVE TWO PERCENT TO TWO HUNDRED SIXTY ONE POINT SEVEN FIVE MEANWHILE ANALYSTS SAW CONCERN IN THE CONTINUED WEAKNESS OF THE DOW JONES UTILITIES AVERAGE SEEN AS A LEADING INDICATOR FOR THE STOCK MARKET BY SOME THE AVERAGE SLUMPED TWO POINT SIX FOUR OR ONE POINT TWO OH PERCENT TO TWO HUNDRED SEVENTEEN POINT ONE ONE A SECOND STRAIGHT FIFTY TWO WEEK LOW VOLUME ON THE BIG BOARD SLIPPED TO TWO HUNDRED NINETY SIX POINT NINE MILLION SHARES FROM THREE HUNDRED FORTY THREE POINT SIX MILLION SHARES FRIDAY DECLINING ISSUES OUTNUMBERED ADVANCERS ONE THOUSAND TWO HUNDRED SIX TO NINE HUNDRED THIRTY FOUR CYCLICAL ISSUES THE MAIN ENGINE IN THE MARKET'S RECENT STRENGTH CONTINUED TO HUM CATERPILLAR JUMPED ONE AND FIVE EIGHTHS TO ONE HUNDRED AND ONE QUARTER DEERE RALLIED ONE AND FIVE EIGHTHS TO EIGHTY AND ALUMINUM COMPANY OF AMERICA INCREASED THREE QUARTERS TO SEVENTY FIVE AND FIVE EIGHTHS THE DOW JONES TRANSPORTATION AVERAGE ADDED FOUR POINT FIVE ONE OR ZERO POINT TWO FIVE PERCENT TO ONE THOUSAND EIGHT HUNDRED EIGHTEEN POINT NINE FOUR THE STRENGTH IN THE ECONOMICALLY SENSITIVE SECTOR TOGETHER WITH GAINS IN ENERGY ISSUES AND THE SHARES OF INTERNATIONAL BUSINESS MACHINES STABILIZED THE DOW JONES INDUSTRIAL AVERAGE IN THE FACE OF LOSSES ELSEWHERE STILL THE DOW FINISHED WELL OFF ITS BEST LEVELS OF THE SESSION WHEN IT WAS UP AROUND TWENTY POINTS IT WAS WHIPPED IN BOTH DIRECTIONS INTRADAY BY PROGRAM TRADING THE NASDAQ COMPOSITE INDEX WHICH SET A SECOND STRAIGHT RECORD FRIDAY SLUMPED THREE POINT SIX THREE OR ZERO POINT FOUR SIX PERCENT TO SEVEN HUNDRED NINETY POINT SIX FIVE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX EASED ONE POINT THREE SEVEN OR ZERO POINT TWO EIGHT PERCENT TO FOUR HUNDRED EIGHTY THREE POINT THREE SEVEN I. B. M. SHARES RALLIED THREE AND THREE EIGHTHS TO FIFTY EIGHT AND FIVE EIGHTHS BARRON'S MAGAZINE REPORTED THAT FIDELITY INVESTMENTS WAS AGGRESSIVELY BUYING THE STOCK LATE LAST YEAR I. B. M. IN ARMONK N. Y. IS SCHEDULED TO RELEASE ITS FOURTH QUARTER RESULTS LATE THIS MORNING IT IS EXPECTED TO REPORT ITS FIRST QUARTERLY PROFIT IN MORE THAN A YEAR SHARES OF UNISYS ANOTHER TROUBLED COMPUTER COMPANY ADVANCED THREE QUARTERS TO THIRTEEN AND THREE EIGHTHS THE COMPANY IN BLUE BELL PENNSYLVANIA HAD A FOURTH QUARTER PROFIT OF FIFTY THREE CENTS A SHARE ABOVE ANALYSTS' EXPECTATIONS OF FORTY FIVE CENTS A SHARE A YEAR EARLIER UNISYS HAD PROFIT FROM OPERATIONS OF FORTY THREE CENTS A SHARE CATERPILLAR JUMPED AFTER MORGAN STANLEY AND COMPANY UPGRADED THE STOCK TO QUOTE BUY QUOTE FROM QUOTE HOLD QUOTE THE PEORIA ILLINOIS HEAVY EQUIPMENT MAKER'S SHARES CLIMBED FOUR AND FIVE EIGHTHS ON FRIDAY AFTER IT REPORTED SURPRISINGLY STRONG EARNINGS REYNOLDS METALS ADVANCED TWO AND THREE EIGHTHS TO FIFTY AND ONE QUARTER EVEN THOUGH IT REPORTED A LOSS FROM OPERATIONS OF THIRTY ONE CENTS A SHARE COMPARED WITH YEAR AGO PROFIT FROM OPERATIONS OF FIVE CENTS ALTHOUGH IT SAID LOWER INGOT PRICES HURT ITS EARNINGS THE RICHMOND VIRGINIA COMPANY SAID DEMAND FROM WESTERN COUNTRIES CONTINUES TO GROW BELLSOUTH ADDED THREE EIGHTHS TO FIFTY SIX AND FIVE EIGHTHS IT HAD FOURTH QUARTER EARNINGS OF ONE DOLLAR A SHARE EXCLUDING SEVERAL CHARGES UP FROM NET INCOME OF SEVENTY TWO CENTS A SHARE A YEAR AGO SOUTHWESTERN BELL LOST ONE AND ONE EIGHTH TO THIRTY EIGHT AND SEVEN EIGHTHS IT REPORTED FOURTH QUARTER EARNINGS OF SIXTY FOUR CENTS A SHARE UP FROM FIFTY EIGHT CENTS A SHARE LAST YEAR BUT SOMEWHAT LOWER THAN EXPECTED STOCKS OF SEVERAL BIG BROKERAGE FIRMS SLIPPED EVEN AS MERRILL LYNCH'S FOURTH QUARTER PROFIT JUMPED FIFTY FIVE PERCENT TO ONE DOLLAR AND FIFTY THREE CENTS A SHARE FROM NINETY NINE CENTS A SHARE A YEAR AGO MERRILL LYNCH LOST THREE QUARTERS TO FORTY AND THREE EIGHTHS MORGAN STANLEY ONE QUARTER TO SEVENTY THREE AND THREE QUARTERS AND PAINEWEBBER FIVE EIGHTHS TO TWENTY FIVE AND THREE QUARTERS D. S. C. COMMUNICATIONS SKIDDED THREE AND ONE EIGHTH TO SIXTY TWO AND ONE HALF ON THE NASDAQ STOCK MARKET AFTER SALOMON BROTHERS REDUCED ITS RATING ON THE PLANO TEXAS COMPANY TO HOLD FROM BUY CITING CONCERN ABOUT INCREASING COMPETITION AMONG TELECOMMUNICATIONS EQUIPMENT MAKERS AFTER THE MARKET CLOSED THE COMPANY POSTED STRONGER THAN EXPECTED FOURTH QUARTER EARNINGS OF FIFTY ONE CENTS A SHARE AMERICAN EXPRESS ADDED FIVE EIGHTHS TO THIRTY ONE AND ONE HALF AFTER THE MARKET CLOSED THE NEW YORK FINANCIAL SERVICES COMPANY REPORTED A FOURTH QUARTER PROFIT OF SEVENTY EIGHT CENTS A SHARE UP FROM FIFTEEN CENTS A SHARE A YEAR AGO AND ANNOUNCED A LONG EXPECTED PLAN TO SPIN OFF ITS LEHMAN BROTHERS UNIT TEXACO ROSE FIVE EIGHTHS TO SIXTY SIX AND ONE EIGHTH AFTER THE WHITE PLAINS N. Y. COMPANY REPORTED PROFIT FROM CONTINUING OPERATIONS OF ONE DOLLAR AND TWENTY FIVE CENTS A SHARE UP FROM ONE DOLLAR AND TWENTY TWO CENTS A SHARE A YEAR AGO CHEVRON ROSE ONE AND ONE QUARTER TO NINETY TWO AND FIVE EIGHTHS AFTER IT WAS UPGRADED TO ACCUMULATE FROM NEUTRAL BY A DEAN WITTER REYNOLDS ANALYST J. B. HUNT GAINED ONE TO TWENTY FOUR AND ONE HALF ON NASDAQ SMITH BARNEY SHEARSON ADDED THE LOWELL ARKANSAS TRUCKING COMPANY TO ITS FOCUS LIST THE BROKERAGE FIRM RATES J. B. HUNT BUY DAUPHIN DEPOSIT ADDED THREE QUARTERS TO TWENTY FIVE AND ONE HALF THE HARRISBURG PENNSYLVANIA COMPANY DISCLOSED PLANS TO BUY BACK UP TO ONE MILLION SHARES OF ITS COMMON STOCK WORRIED ABOUT THE DIVERGENCE BETWEEN ACTION IN THE DOW AND IN OTHER INDEXES MANY INVESTORS ARE SELLING SHARES TO LOCK IN SOME OF THEIR RECENT GAINS ANALYSTS SAID I CAN'T TELL YOU HOW MANY CONVERSATIONS I HAD WITH PEOPLE TODAY WHO ARE CONCERNED ABOUT THE NARROW LEADERSHIP SAID JOSEPH DEMARCO YESTERDAY MR. DEMARCO HEADS EQUITY TRADING AT MARINVEST A UNIT OF HONGKONG AND SHANGHAI BANK GAIL DUDACK MARKET STRATEGIST AT S. G. WARBURG AND COMPANY SAID A DIVERGENCE BETWEEN THE DOW JONES UTILITIES AVERAGE AND THE REST OF THE MARKET TYPICALLY LASTS ABOUT FIVE MONTHS BEFORE THE BROAD MARKET FOLLOWS THAT AVERAGE'S LEAD THE CONTINUING SPLIT SHE SAID IS NEARING THAT DURATION QUOTE THAT IS ONE OF THE LARGEST WARNING SIGNS IT SAYS TO ME THAT YOU SHOULD BE ON THE LOOKOUT FOR WHAT COULD GO WRONG I'VE BEEN A BULL FOR A LONG TIME BUT I AM GETTING INCREASINGLY NEUTRAL ON THE MARKET MS. DUDACK SAID FIRST SECURITY CORPORATION SALT LAKE CITY A BANK HOLDING COMPANY INCREASED ITS QUARTERLY DIVIDEND ON COMMON STOCK TO TWENTY SIX CENTS A SHARE FROM TWENTY THREE CENTS A SHARE PAYABLE MARCH SEVENTH TO HOLDERS OF RECORD FEBRUARY EIGHTEENTH VIACOM INCORPORATED STOCK FELL FOUR POINT SIX PERCENT YESTERDAY FOLLOWING THE ENDORSEMENT BY PARAMOUNT COMMUNICATIONS INCORPORATED'S BOARD OF VIACOM'S TAKEOVER BID VIACOM CLASS B. NONVOTING SHARES FELL ONE DOLLAR AND SEVENTY FIVE CENTS TO THIRTY SIX DOLLARS A SHARE ON THE AMERICAN STOCK EXCHANGE CUTTING THE VALUE OF VIACOM'S BID SLIGHTLY SHARES OF ITS BIDDING RIVAL Q. V. C. NETWORK INCORPORATED FELL ONE DOLLAR TO FORTY THREE DOLLARS ON THE NASDAQ STOCK MARKET CUTTING THE VALUE OF ITS BID BY A COMPARABLE AMOUNT AS A RESULT VIACOM'S BID DROPPED TO ABOUT NINE POINT SEVEN BILLION DOLLARS AND Q. V. C.'S TO TEN POINT ONE BILLION DOLLARS THE PARAMOUNT BOARD ENDORSED THE VIACOM BID FRIDAY PARTLY BECAUSE IT OFFERS MORE CASH AND SOME PROTECTION AGAINST A DOWNTURN IN VIACOM'S STOCK AFTER THE ACQUISITION OF PARAMOUNT Q. V. C. IS EXPECTED TO MAKE A SLIGHT INCREASE IN ITS BID SOMETIME BEFORE JANUARY THIRTY FIRST BOTH BIDDERS ARE SUPPOSED TO SUBMIT THEIR BEST AND FINAL OFFERS BY FEBRUARY FIRST THE NEW YORK STATE BANKING DEPARTMENT REBUKED GREEN POINT SAVINGS BANK SAYING TOP EXECUTIVES WERE SEEKING TO ENRICH THEMSELVES IN A CONVERSION PLAN WHILE FAILING TO MAKE SURE THE BANK WAS VALUED FAIRLY THE DEPARTMENT ISSUED AN ORDER ALLOWING THE BANK TO PROCEED WITH ITS PLAN TO CONVERT FROM A MUTUAL SAVINGS BANK TO STOCK OWNERSHIP BUT IT IMPOSED A LENGTHY LIST OF STRINGENT REQUIREMENTS THE ORDER REQUIRES GREEN POINT TO APPOINT THREE NEW INDEPENDENT DIRECTORS TO MAKE SURE THE BANK COMPLIES WITH THE ORDER THE ORDER SAID THE BANK MUST DROP PLANS TO ISSUE STOCK GRANTS TO TRUSTEES AND OFFICERS IT REQUIRES GREEN POINT TO DEFER GRANTING ANY FUTURE STOCK OPTIONS FOR AT LEAST ONE YEAR AFTER THE CONVERSION AND TO MAKE SUCH OPTIONS SUBJECT TO APPROVAL BY AN INDEPENDENT COMPENSATION COMMITTEE THE PLAN HAD CALLED FOR GREEN POINT TO ISSUE AS MUCH AS TWENTY ONE MILLION DOLLARS IN STOCK TO OFFICERS AND TRUSTEES GREEN POINT WHICH HAS SIX POINT FIVE BILLION DOLLARS IN ASSETS AGREED TO THE TERMS IN A SETTLEMENT BUT DIDN'T ADMIT OR DENY THE DEPARTMENT'S FINDINGS A BANKING DEPARTMENT SPOKESWOMAN SAID THE FINDINGS WEREN'T DIRECTLY RELATED TO PROPOSED FEDERAL GUIDELINES SEEKING TO PREVENT INSIDERS FROM REAPING EXCESSIVE PROFITS IN CONVERSIONS OF MUTUAL SAVINGS BANKS TO STOCK OWNERSHIP ONE OF THE BEST SELLING ITEMS AT BOOKSHOPS HERE IS A NINETEEN NINETY FOUR DATEBOOK WITH A BIG RED STAR ON THE COVER AND INSCRIBED WITH THE SLOGAN QUOTE P. T. NINETY FOUR LULA PRESIDENT QUOTE THIS COULD INDEED BE THE YEAR IN WHICH THE PRESIDENT OF THE LEFTIST WORKERS' PARTY LUIS INACIO LULA DA SILVA COMES TO POWER IN BRAZIL IF ELECTIONS WERE HELD TODAY POLLS SHOW HE WOULD BE THE HANDS DOWN WINNER SUCH A VICTORY PROBABLY WOULD BRING BRAZIL'S ALREADY SLOW PROGRAM OF FREE MARKET REFORMS TO A STANDSTILL THERE'S STILL A WAY TO GO BEFORE BUYERS CAN WRITE LULA ELECTED PRESIDENT ON THE NOVEMBER FIFTEENTH PAGE OF THEIR DATEBOOKS IT'S UNCLEAR WHOM MR. DA SILVA COMMONLY KNOWN HERE AS LULA WILL FACE AND THE VERY STRENGTH OF HIS CAMPAIGN MAKES IT LIKELY THAT A CONSENSUAL MODERATE ANTI LULA CANDIDATE SUCH AS FINANCE MINISTER FERNANDO HENRIQUE CARDOSO WILL EMERGE BUT WITH MANY BRAZILIAN POLITICIANS DISCREDITED BY CORRUPTION SCANDALS THE COUNTRY LIVING WITH HYPER INFLATION AND PRESIDENT ITAMAR FRANCO'S GOVERNMENT SEEMINGLY INERT MR. DA SILVA HAS PARLAYED BRAZIL'S DESIRE FOR CHANGE INTO A COMMANDING LEAD IN OPINION POLLS THE BEARDED GRAVELLY VOICED MR. DA SILVA CUTS AN UNUSUAL FIGURE IN BRAZILIAN POLITICS AS A CHILD HE FLED THE IMPOVERISHED NORTHEAST ON THE BACK OF A TRUCK WITH HIS FAMILY QUIT SCHOOL AT ELEVEN LOST A FINGER IN A FACTORY ACCIDENT AND ROSE TO PROMINENCE AS A MILITANT UNION LEADER BEFORE NARROWLY LOSING THE NINETEEN EIGHTY NINE PRESIDENTIAL ELECTION THE PROSPECT OF HIS REACHING THE PRESIDENCY HAS MANY IN THE BUSINESS COMMUNITY HERE SCARED MR. DA SILVA IS WARMING UP HIS STEAM TRAIN TO TAKE US IN THE DIRECTION OF ALBANIA WROTE BUSINESSMAN GILBERTO SOUZA GOMES JOB IN THE DAILY O. GLOBO NEWSPAPER SPURRING THEIR FEARS IS THE WAY MR. DA SILVA DEFENDS AN AGENDA THAT INCLUDES HEAVY STATE INTERVENTION IN THE ECONOMY AND A CONFRONTATIONAL ATTITUDE TOWARD FOREIGN BANKS MR. DA SILVA IS UNAPOLOGETIC AN INVERSION IN PRIORITIES IS NEEDED IN THIS COUNTRY HE SAYS IN AN INTERVIEW IN HIS SAO PAULO HEADQUARTERS BRAZIL'S DEVELOPMENT MODEL AND ECONOMIC POLICY OVER THE PAST THIRTY YEARS WERE CONTRARY TO THE GENERAL INTEREST THEY CONCENTRATED WEALTH OUR PRIORITY IS TO END HUNGER IMPROVE HEALTH AND EDUCATION AND RESUME GROWTH MR. DA SILVA LARGELY BLAMES BRAZIL'S SOCIAL AND ECONOMIC PROBLEMS ON THE FREE MARKET REFORMS INTRODUCED IN NINETEEN NINETY BY FERNANDO COLLOR DE MELLO WHO DEFEATED MR. DA SILVA BUT RESIGNED IN NINETEEN NINETY TWO TO WARD OFF HIS PROBABLE IMPEACHMENT ON CORRUPTION CHARGES MR. DA SILVA SPELLED OUT HIS IDEAS ON THE FOLLOWING POINTS DURING THE HOURLONG INTERVIEW PRIVATIZATION WHILE HE ADMITS THAT MANY OF BRAZIL'S STATE COMPANIES ARE INEFFICIENT MR. DA SILVA SAYS HE OPPOSES PRIVATIZATION HE ALSO SAYS QUOTE STRATEGIC SECTORS QUOTE SUCH AS TELECOMMUNICATIONS OIL AND AVIATION QUOTE HAVE TO REMAIN IN STATE HANDS QUOTE THOUGH HE DOESN'T RULE OUT PRIVATE AND FOREIGN CAPITAL ENTERING AS MINORITY PARTNERS HOWEVER HE SAYS CANCELING PRIVATIZATIONS THAT HAVE TAKEN PLACE SINCE NINETEEN NINETY WOULD BE A WASTE OF TIME FOREIGN DEBT MR. DA SILVA WANTS TO PERSUADE FOREIGN GOVERNMENTS TO ALLOW BRAZIL TO SUSPEND DEBT PAYMENTS AND USE THOSE FUNDS TO INVEST IN RESEARCH EDUCATION AGRICULTURE AND JOB CREATION HE SAYS DEBTOR COUNTRIES SHOULD ORGANIZE THEMSELVES AND TURN THE DEBT ISSUE INTO A POLITICAL PROBLEM THAT'S NEGOTIATED AMONG GOVERNMENTS RATHER THAN WITH PRIVATE BANKS PRESIDENT CLINTON HE SAYS COULD BE MORE SENSITIVE TO BRAZILIAN SOCIAL PROBLEMS THAN A BANKER TRADE LIBERALIZATION MR. DA SILVA SAYS LOWERING TRADE BARRIERS HAS LED TO HUGE JOB LOSSES AND HE FAVORS QUOTAS ON IMPORTS OF SUCH THINGS AS CARS COLLOR'S OPENING OF THE BORDERS DID MORE DAMAGE THAN A WAR HE SAYS FROM THE CONSUMER'S POINT OF VIEW THERE'S NO PROBLEM WITH OPENING OUR BORDERS BUT FROM THE STATE'S POINT OF VIEW WE HAVE TO WORRY ABOUT WHO WILL CREATE JOBS HERE NOT IN JAPAN QUOTE ECONOMIC POLICY MR. DA SILVA OPPOSES SHOCK THERAPY TO BRING DOWN BRAZIL'S ANNUAL INFLATION RATE OF TWO THOUSAND SIX HUNDRED PERCENT AND WANTS TO REDUCE IT GRADUALLY BY CREATING LONG TERM INSTRUMENTS FOR THE COUNTRY'S INTERNAL DEBT THIS PROBABLY WOULD TRIGGER A CONFLICT WITH BANKS WHICH MAKE BIG PROFITS ROLLING OVER INTERNAL DEBT HE ALSO WANTS STRICT MEASURES AGAINST TAX EVADERS AND OLIGOPOLIES THAT MARK UP PRICES ABOVE INFLATION MANY BRAZILIANS CALL MR. DA SILVA'S PROGRAM UNVIABLE AT A RECENT CONFERENCE IN NEW YORK BRAZILIAN BANKER IGOR CORNELSEN PREDICTED CHAOS IF HE WINS NOTING THAT MR. DA SILVA IS POPULAR BUT THE IDEAS HE DEFENDS AREN'T POLITICAL SCIENTIST WALDER DE GOES SAYS I WOULDN'T BET THREE HUNDRED DOLLARS ON LULA PREDICTING HE WILL START LOSING GROUND WHEN HIS RIVALS APPEAR EVEN THOSE WHO BELIEVE MR. DA SILVA CAN WIN SAY HE WILL HAVE TO MODERATE HIS IDEAS TO GARNER A MAJORITY BUT TO THOSE WHO PREDICT HE COULD BE LIKE ARGENTINE PRESIDENT CARLOS MENEM WHO CAMPAIGNED AS A POPULIST BUT ENACTED RADICAL FREE MARKET REFORMS MR. LULA SAYS HE'S NO TURNCOAT I DON'T WANT TO HAVE ONE DISCOURSE TO WIN THE ELECTIONS AND THEN DO THE OPPOSITE HE SAYS IN THAT CASE I'D RATHER DIE ON INAUGURATION DAY SCANDINAVIAN AIRLINES SYSTEM NAMED JAN STENBERG CURRENTLY EXECUTIVE VICE PRESIDENT AT TELEFON A. B. L. M. ERICSSON AS CHIEF EXECUTIVE OFFICER MR. STENBERG FIFTY FOUR YEARS OLD WILL TAKE THE CONTROLS OF THE TROUBLED SCANDINAVIAN AIRLINE APRIL FIRST S. A. S.'S OWNERSHIP IS EQUALLY DIVIDED AMONG SWEDEN NORWAY AND DENMARK HIS TASK WILL BE TO FIND A STRATEGY FOR AN AIRLINE STILL STRUGGLING FROM THE FAILED DIVERSIFICATION EFFORT LAUNCHED BY HIS PREDECESSOR THE FLAMBOYANT JAN CARLZON WHO LEFT LAST YEAR AFTER HIS PLAN FOR A MERGER WITH THREE OTHER EUROPEAN AIRLINES FAILED S. A. S. HAS REPORTED A PRETAX LOSS EACH YEAR SINCE NINETEEN NINETY AND IS EXPECTED TO REPORT A LOSS FOR NINETEEN NINETY THREE AS PREVIOUSLY ANNOUNCED JAN REINAS WHO ACTED AS INTERIM CHIEF EXECUTIVE WILL LEAVE TO TAKE THE HELM OF NORWEGIAN PAPER AND PULP CONCERN NORSKE SKOG AS THE S. A. S. BOARD IS APPARENTLY COUNTING ON MR. STENBERG'S EXPERIENCE AS AN INTERNATIONAL NEGOTIATOR TO HELP THE AIRLINE IN ITS SEARCH FOR TIGHTER LINKS TO THE EUROPEAN CONTINENT S. A. S. ALREADY HAS A THREE WAY MARKETING ALLIANCE WITH SWISSAIR AND AUSTRIAN AIRLINES AND MR. STENBERG HINTED THAT THIS GROUPING WILL BE A KEY TO HIS PLANS QUOTE WE SHOULD DEEPEN THE CURRENT COOPERATIONS AND SHOULD SEEK NEW ONES QUOTE HE SAID BUT IT'S OPEN TO QUESTION AS TO THE FORM AND TIMING OF SUCH MOVES EUGENE SCALIA SHOULD WEIGH THE COSTS OF DOING NOTHING ABOUT CUMULATIVE TRAUMA DISORDERS CTDS BEFORE HE OBJECTS TO ERGONOMICS PROGRAMS QUOTE OSHA TO BUSINESS SLOW DOWN YOU WORK TOO FAST QUOTE EDITORIAL PAGE JANUARY THIRTEENTH BY THE MOST CONSERVATIVE ESTIMATES MADE A DECADE AGO CTDS OF THE HAND AND ARM COST AT LEAST TWENTY BILLION DOLLARS A YEAR IN HEALTH CARE WORKERS COMPENSATION DISABILITY AND LOST WORK TIME COSTS THE REAL CURRENT FIGURE SURELY IS AT LEAST SEVERAL TIMES THAT AMOUNT ERGONOMIC PROGRAMS WHICH RESEARCHERS HAVE FOUND EFFECTIVE AT REDUCING THE RATE OF REPORTED AILMENTS COST FAR LESS WHETHER CTDS ARE REAL HEALTH CONDITIONS AS I BELIEVE OR THE COLLECTIVE FANTASY OF TENS OF MILLIONS OF MEN AND WOMEN IN DIVERSE INDUSTRIES AS MR. SCALIA SUGGESTS BUSINESSES CERTAINLY THOSE IN HIGH RISK INDUSTRIES SUCH AS MEAT CUTTING AND DATA PROCESSING SHOULD BE WARY OF LAWYERS LIKE MR. SCALIA WHO ADVISE THEM TO OPT FOR POLICIES THAT ARE EXPENSIVE AND NONPRODUCTIVE THE SUPREME COURT REJECTED AN AIRLINE INDUSTRY CHALLENGE TO WHAT CARRIERS CONSIDER EXCESSIVE FEES IMPOSED BY U. S. AIRPORTS THE SEVEN TO ONE RULING STRESSED THAT THE JUSTICES WOULD PREFER THAT THE TRANSPORTATION DEPARTMENT SETTLE DISPUTES OVER FEES FOR USING RUNWAYS AND PASSENGER TERMINALS BUT SINCE THE DEPARTMENT TRADITIONALLY HASN'T INTERVENED IN SUCH CLASHES THE HIGH COURT WENT AHEAD AND ANALYZED THE FEES CHARGED BY KENT COUNTY INTERNATIONAL AIRPORT IN GRAND RAPIDS MICHIGAN AND FOUND THEM QUOTE REASONABLE QUOTE FIGHTS OVER FEES HAVE BROKEN OUT ALL OVER THE COUNTRY LOS ANGELES INTERNATIONAL AIRPORT THE NATION'S THIRD LARGEST WAS NEARLY SHUT DOWN LATE LAST YEAR BEFORE CARRIERS REACHED A COMPROMISE WITH THE FACILITY AFTER THE BATTLE IN LOS ANGELES TRANSPORTATION SECRETARY FEDERICO PENA SAID HIS AGENCY WOULD GET MORE INVOLVED IN SETTLING SUCH CLASHES U. S. AIRLINE COMPANIES MANY OF WHICH HAVE STRUGGLED IN RECENT YEARS PAID A TOTAL OF THREE POINT FOUR BILLION DOLLARS IN AIRPORT FEES IN NINETEEN NINETY ONE ROUGHLY FOUR POINT FIVE PERCENT OF THEIR TOTAL OPERATING COSTS ACCORDING TO THE INDUSTRY'S FIGURES CARRIERS COMPLAIN THAT SOME AIRPORT FEES ARE OUT OF PROPORTION TO ACTUAL USE OF LANDING AND TERMINAL FACILITIES KENT COUNTY'S FEES WERE CHALLENGED BY SEVEN COMMERCIAL CARRIERS INCLUDING NORTHWEST AIRLINES A UNIT OF NORTHWEST AIRLINES CORPORATION AMERICAN AIRLINES A UNIT OF A. M. R. CORPORATION AND UNITED AIRLINES A UNIT OF U. A. L. CORPORATION THE CUMULATIVE ANNUAL FEES AT ISSUE IN THE CASE AMOUNTED TO NEARLY TWO MILLION DOLLARS FOR NINETEEN EIGHTY EIGHT THE AIRLINES CONTENDED THAT KENT COUNTY'S FEES WERE UNREASONABLE AND DISCRIMINATORY BECAUSE THEY WERE BASED ON COST ALLOCATIONS THAT FAVORED AIRPORT CONCESSIONS AND PRIVATE PLANE OWNERS OVER THE CARRIERS BUT THE SUPREME COURT SAID THE AIRLINES HADN'T PROVIDED SUFFICIENT EVIDENCE TO PROVE ANY UNFAIRNESS THE COURT CONCLUDED THAT KENT COUNTY'S FEES VIOLATED NEITHER A FEDERAL STATUTE REQUIRING REASONABLE LEVIES NOR THE CONSTITUTION'S PROTECTION OF INTERSTATE COMMERCE JUSTICE RUTH BADER GINSBURG WROTE THE MAJORITY OPINION JUSTICE CLARENCE THOMAS DISSENTED JUSTICE HARRY BLACKMUN DIDN'T PARTICIPATE IN THE CASE SEPARATELY THE HIGH COURT HANDED UNIONS AND WORKERS A VICTORY IN A UNANIMOUS LABOR LAW RULING THE JUSTICES SAID THAT FIRED EMPLOYEES WHO LIE DURING ADMINISTRATIVE HEARINGS SHOULDN'T AUTOMATICALLY BE DENIED REINSTATEMENT OR BACK PAY WHILE EXPRESSING STRONG DISAPPROVAL OF SUCH DISHONESTY THE COURT DECLINED TO REVERSE A RULING BY THE NATIONAL LABOR RELATIONS BOARD THAT REINSTATED AN ALBUQUERQUE N. M. TRUCKING TERMINAL WORKER WHO THE AGENCY DETERMINED HAD BEEN FIRED PRIMARILY BECAUSE OF HIS UNION ACTIVITIES THE N. L. R. B. FAVORED THE WORKER AND AWARDED HIM BACK PAY EVEN THOUGH HE HAD LIED TO AN ADMINISTRATIVE JUDGE ABOUT BEING LATE TO WORK AS A RESULT OF CAR TROUBLE THE CLINTON ADMINISTRATION DEFENDED THE N. L. R. B.'S RULING WHICH WAS AFFIRMED BY THE FEDERAL APPEALS COURT IN DENVER WRITING FOR THE HIGH COURT JUSTICE JOHN PAUL STEVENS SAID THE N. L. R. B. COULD HAVE ADOPTED A RULE PRECLUDING REINSTATEMENT BUT HE SAID THE AGENCY WASN'T OBLIGED TO DO SO HE SAID THAT THE JUDICIARY SHOULD RARELY SECOND GUESS THE JUDGMENT OF EXECUTIVE BRANCH AGENCIES GIVEN AUTHORITY BY CONGRESS TO MAKE SUCH POLICY DECISIONS CONCURRING IN THE COURT'S CONCLUSION JUSTICE ANTONIN SCALIA ADDED A SEPARATE OPINION SCOLDING THE N. L. R. B. FOR AN UNSEEMLY TOLERATION OF PERJURY JUSTICE SANDRA DAY O'CONNOR JOINED THE SCALIA OPINION IN ANOTHER DECISION STATES ESCAPED A SIZABLE TAX HEADACHE WHEN THE SUPREME COURT REJECTED A RAILROAD INDUSTRY CHALLENGE TO OREGON'S PROPERTY TAX LAW THE CASE CONCERNED THE APPLICATION OF A NINETEEN SEVENTY SIX FEDERAL LAW DESIGNED TO BOOST THE STRUGGLING INTERSTATE RAILROAD INDUSTRY BY BANNING STATES FROM IMPOSING DISCRIMINATORY TAXES ON RAILROAD PROPERTY IN THE OREGON CASE THE FEDERAL APPEALS COURT IN SAN FRANCISCO HAD INTERPRETED THE LAW AS FORBIDDING STATES FROM GRANTING ANY PROPERTY TAX EXEMPTIONS TO COMMERCIAL OR INDUSTRIAL PROPERTY IF THEY DON'T SIMILARLY EXEMPT RAILROAD PROPERTY IF THE APPELLATE COURT RULING HAD BEEN UPHELD IT WOULD HAVE REQUIRED ALMOST EVERY STATE TO ELIMINATE CERTAIN EXEMPTIONS OR TO GRANT RAILROADS BROAD IMMUNITY FROM ORDINARY PROPERTY TAXES THE LATTER COURSE COULD HAVE COST STATES ONE HUNDRED MILLION DOLLARS ANNUALLY IN LOST REVENUE ACCORDING TO STATE TAX OFFICIALS BUT THE SUPREME COURT RULED EIGHT TO ONE THAT THE APPELLATE COURT RULING WAS WRONG THE HIGH COURT SAID THAT AS LONG AS RAILROAD PROPERTY ISN'T SINGLED OUT FOR DISCRIMINATORY TREATMENT STATES MAY CONTINUE TO GRANT TRADITIONAL EXEMPTIONS TO OTHER TYPES OF PROPERTY OREGON'S TAX SYSTEM HAD BEEN CHALLENGED BY RAILROAD CAR LEASING COMPANIES WHICH COMPLAINED THAT THE STATE GAVE EXEMPTIONS TO BUSINESS INVENTORY AND STANDING TIMBER AMONG OTHER CATEGORIES OF PROPERTY BUT NOT TO RAILROAD CARS OREGON VERSUS A. C. F. INDUSTRIES INCORPORATED DECLINED TO HEAR A PATENT LAW APPEAL BY INTEL CORPORATION IN A CLOSELY WATCHED DISPUTE OVER COMPUTER CHIPS INTEL CLAIMED THAT A SMALL COMPETITOR ULSI SYSTEM TECHNOLOGY INCORPORATED RELIED ON INFORMATION PATENTED BY INTEL TO MAKE A CLONE VERSION OF AN INTEL MATH COPROCESSOR WHICH SPEEDS UP CALCULATIONS IN PERSONAL COMPUTERS A FEDERAL APPEALS COURT IN WASHINGTON SAID THAT BECAUSE THE CLONE WAS FABRICATED FOR ULSI BY HEWLETT PACKARD COMPANY WHICH HELD A LICENSE TO THE INTEL PATENT ULSI'S MARKETING OF THE CLONE WAS LEGITIMATE INTEL WARNED THAT UNDER THE LOWER COURT'S THEORY HIGH TECH COMPANIES WILL BE ABLE TO LAUNDER PATENTED PRODUCTS MERELY BY HAVING THEM FABRICATED BY THIRD COMPANIES THAT HAVE LEGITIMATE LICENSING AGREEMENTS WITH THE PATENT OWNERS INTEL CORPORATION VERSUS ULSI SYSTEM TECHNOLOGY INCORPORATED LET STAND A TWO HUNDRED TEN MILLION DOLLAR ANTITRUST AWARD AGAINST U. S. X. CORPORATION'S FORMER BESSEMER AND LAKE ERIE RAILROAD COMPANY UNIT THE AWARD WHICH INCLUDES INTEREST STEMS FROM SUITS FILED BY A GROUP OF STEEL COMPANIES IN THE EARLY NINETEEN EIGHTIES THE STEEL COMPANIES ACCUSED SEVERAL RAILROADS INCLUDING B. AND LE OF CONSPIRING TO PROP UP PRICES FOR TRANSPORTING IRON ORE TO STEEL MILLS FROM THE MID NINETEEN FIFTIES THROUGH THE EARLY NINETEEN EIGHTIES B. AND LE IS NOW OWNED BY CLOSELY HELD TRANSTAR INCORPORATED OF MONROEVILLE PENNSYLVANIA U. S. X. OWNS A MINORITY INTEREST IN TRANSTAR AFTER A NUMBER OF SETTLEMENTS B. AND LE WAS THE ONLY DEFENDANT AGAINST WHOM CLAIMS WERE STILL PENDING U. S. X. SAID THAT LAST YEAR IT SET ASIDE FIVE HUNDRED SIX MILLION DOLLARS IN RESERVES TO COVER THE PAYMENT OF DAMAGES BESSEMER AND LAKE ERIE RAILROAD COMPANY VERSUS WHEELING PITTSBURG CORPORATION IN RESPONSE TO MICHAEL K. MEYERHOFF'S JANUARY SIXTH EDITORIAL PAGE PIECE QUOTE THE BEST DAY CARE A PARENT AT HOME IT IS EXCEEDINGLY TIRESOME TO HEAR YET AGAIN THAT I HAVE ACCORDING TO MR. MEYERHOFF SACRIFICED THE WELL BEING OF MY CHILDREN FOR MERELY AN OPPORTUNITY FOR PARTICIPATION AND RECOGNITION IN THE WORKPLACE THIS HAS TO BE A NEW LOW IN WORKING WOMAN BASHING FOR MYSELF AND I DARE TO SAY THE MAJORITY OF OTHER WORKING WOMEN BUILDING AND MAINTAINING A STABLE ECONOMIC BASE FOR OUR FAMILIES AS SINGLE PARENTS OR AS PARTNERS IN A MARRIAGE IS CERTAINLY MORE MOTIVATION THAN THE TYPES OF RECOGNITION COMMONLY AVAILABLE IN THE WORKPLACE PARTICULARLY CONSIDERING THAT WOMEN GET LESS MONETARY RECOGNITION THAN MEN I AM ALSO PARTICULARLY OFFENDED BY MR. MEYERHOFF'S COMMENT CONCERNING EARNING A FEW BUCKS TO MAKE ENDS MEET THE IMPLICATION THAT A WOMAN'S DESIRE FOR THE MODERN EQUIVALENT OF PIN MONEY COULD BE SATISFIED BY AN INCREASE IN PART TIME WORK IS PATRONIZING BEYOND BELIEF AS IS THE BONE MR. MEYERHOFF THROWS CONCERNING FATHERS' RESPONSIBILITY FOR RAISING CHILDREN AS TO MY WANTING ONLY TO SUSTAIN A LIFESTYLE THAT THEIR OWN PARENTS ONLY DREAMED ABOUT A GENERATION AGO MR. MEYERHOFF HAS INADVERTENTLY I'M SURE HIT THE NAIL ON THE HEAD I AM A SECOND GENERATION AMERICAN AND IT WAS EXACTLY MY GRANDPARENTS' AND PARENTS' VISION THAT THROUGH HARD WORK EDUCATION AND THE AMERICAN OPPORTUNITY THAT THEIR CHILDREN COULD REAP THE REWARDS OF THEIR EFFORTS FOR THEMSELVES AND THEIR CHILDREN MARIANNE M. JENNINGS'S JANUARY THIRD EDITORIAL PAGE ARTICLE QUOTE A MOTHER TALKS TO MRS. CLINTON QUOTE RESONATED STRONGLY WITH ME I HAD A MERCIFULLY MORE BRIEF AND LESS INTENSE EXPOSURE TO GOVERNMENT BUREAUCRACY WHILE CARING FOR MY LATE HUSBAND A COLLEGE PROFESSOR WHO DIED OF A BRAIN TUMOR IN NINETEEN EIGHTY FIVE WHEN HE WAS FIFTY ONE IT HAS MADE ME A FERVENT ADVOCATE FOR LESS GOVERNMENT INTRUSION ALWAYS AND A REPUBLICAN A SERIOUSLY ILL PERSON INCREASINGLY LOSES CONTROL OVER HIS LIFE HIS SURROUNDINGS HIMSELF TO CONSISTENTLY DEPRIVE HIM OF EVEN MORE CONTROL IS TO TORTURE THE PATIENT AND THE FAMILY TO THIS DAY I FEEL OUTRAGE AT THE UPSTATE COUNTY VISITING NURSES WHO WANTED TO MANAGE US AND AT THE ALBANY HOSPICE THAT WANTED TO DO THE SAME THING IN THE END WE THANKFULLY LEFT THE HOSPICE FIRED THE BUREAUCRACY ENTRENCHED NURSES WROTE AND ADVERTISED A JOB DESCRIPTION OF EXACTLY THE NURSING CARE WE NEEDED AND SURVIVED AT HOME UNTIL HIS DEATH MUCH OF WHAT I HEAR AND READ OF THE CLINTON ADMINISTRATION'S HEALTH CARE PROPOSALS MAY BE SUMMED UP IN A STRUGGLE OVER WHO CONTROLS WHAT MY OWN SCARIFYING LEARNING EXPERIENCE PUTS ME ON THE SIDE OF PERSONAL FREEDOM I CAN ONLY HOPE THAT MANY AGREE DIGITAL EQUIPMENT CORPORATION STUNNED BY AN UNEXPECTEDLY LARGE LOSS AND REVENUE DECLINE IN THE LATEST QUARTER IS PLANNING ITS SECOND MAJOR REORGANIZATION IN LESS THAN A YEAR COMPANY INSIDERS SAID UNDER THE REORGANIZATION DIGITAL IS REDUCING THE INFLUENCE OF FOUR TOP EXECUTIVES WHO RUN GROUPS ORGANIZED AROUND MAJOR CUSTOMER INDUSTRIES SUCH AS BANKING AND FINANCE AND IS REASSIGNING FIVE EXECUTIVES TO RUN NEW UNITS ORGANIZED AROUND DIGITAL PRODUCTS THE NEW QUOTE STRATEGIC BUSINESS UNITS QUOTE WILL REPORT DIRECTLY TO DIGITAL'S SALES AND MARKETING CHIEF EDWARD E. LUCENTE THE MOVES WIDEN MR. LUCENTE'S INFLUENCE CONSOLIDATE HIS ROLE AS THE NUMBER TWO EXECUTIVE AND DIMINISH THE CENTRAL ROLE OF THE INDUSTRY GROUPS WHICH WERE CREATED ONLY LAST YEAR BY THE CHIEF EXECUTIVE OFFICER ROBERT B. PALMER ALTHOUGH MR. LUCENTE'S INFLUENCE GROWS AS A RESULT OF THE MOVE DIGITAL INSIDERS SAY THE REORGANIZATION IS BEING DONE WITH THE FULL SUPPORT AND APPROVAL OF MR. PALMER THE DATA STORAGE AND PERSONAL COMPUTER GROUPS AMONG THE FEW BRIGHT SPOT IN DIGITAL'S RESULTS AND THE HUGE COMPUTER SERVICES UNIT APPEAR UNAFFECTED BY THE MOVES BARRY F. WILLMAN AN ANALYST WITH GOLDMAN SACHS AND COMPANY SAID DIGITAL IS STILL SEARCHING FOR A MORE EFFECTIVE STRUCTURE HE SAID THAT THE INDUSTRY BUSINESS UNITS WERE SUPPOSED TO STREAMLINE THE ORGANIZATION AND INCREASE CUSTOMER FOCUS BUT WHAT SEEMS TO HAVE EVOLVED INSTEAD WAS A LEVEL OF STRUCTURE THAT ACTUALLY IMPEDED SOME OF THE RESPONSIVENESS THEY HAD INTENDED TO CREATE HE ALSO SAID THAT SOME KEY RELATIONSHIPS WITHIN THE COMPANY WEREN'T WORKING SMOOTHLY BEFORE THE EXPECTED CHANGES WERE ANNOUNCED SHARES OF THE BIG MAYNARD MASSACHUSETTS COMPUTER MAKER SLUMPED AGAIN YESTERDAY HITTING A NEW FIFTY TWO WEEK LOW THE STOCK CLOSED AT THIRTY DOLLARS AND SEVENTY FIVE CENTS DOWN SEVENTY FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AND WAS THE SECOND MOST ACTIVE ISSUE WITH TWO POINT SEVEN MILLION SHARES CHANGING HANDS ANALYSTS SAID INVESTORS WERE REACTING IN PART TO DIGITAL'S ANNOUNCEMENT AFTER THE CLOSE OF TRADING FRIDAY THAT IT FILED A SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AS MUCH AS ONE BILLION DOLLARS IN DEBT PREFERRED STOCK OR NEW SHARES A SPOKESMAN SAID THE COMPANY HAD NO IMMEDIATE PLANS TO ISSUE THE DEBT OR STOCK BUT JAY P. STEVENS AN ANALYST WITH DEAN WITTER SAID DIGITAL IS LIKELY TO ISSUE MORE DEBT SOON THEIR RATING IS SLIPPING THEY'RE JUST HANGING IN WITH AN INVESTMENT GRADE RATING AND IT LOOKS LIKE THEY ARE GOING TO HAVE TO TAKE ANOTHER RESTRUCTURING RESERVE TO COVER YET ANOTHER ROUND OF WORK FORCE REDUCTIONS DIGITAL HAS ALREADY SAID IT WILL CUT ITS WORK FORCE BY SEVEN THOUSAND BY JUNE THIRTIETH TO ABOUT EIGHTY FIVE THOUSAND PEOPLE THE LATEST MOVES ARE AN ABRUBT CHANGE OF COURSE FOR MR. PALMER WHO IS UNDER PRESSURE FROM DIGITAL'S BOARD TO TURN THE COMPANY AROUND HE HAS BEEN SUCCESSFUL IN CUTTING COSTS BUT HASN'T BEEN ABLE TO IGNITE NEW GROWTH DESPITE DIGITAL'S STRONG PRODUCTS FOR ITS SECOND QUARTER ENDED JANUARY FIRST DIGITAL LAST WEEK REPORTED A LOSS OF SEVENTY TWO POINT ONE MILLION DOLLARS OR FIFTY THREE CENTS A SHARE ON A TWELVE PERCENT REVENUE DECLINE TO THREE POINT TWO FIVE BILLION DOLLARS UNDER THE EXISTING CUSTOMER BUSINESS UNIT STRUCTURE DEVISED BY MR. PALMER LAST YEAR MOST SALES EFFORTS WERE FOCUSED ON SPECIFIC BUSINESSES THEY INCLUDED DEFENSE AND MANUFACTURING UNDER FRANK MCCABE FINANCIAL PROFESSIONAL AND PUBLIC SERVICES UNDER BRUCE J. RYAN CONSUMER AND PROCESS INDUSTRIES UNDER JOHN E. KLEIN AND EDUCATION COMMUNICATIONS AND MEDIA HEADED BY PAUL G. KOZLOWSKI A FIFTH UNIT WHICH FOCUSED ON HEALTH CARE INDUSTRIES IS BEING DISMANTLED AND ITS INDUSTRIES PHARMACEUTICALS HOSPITALS AND SO FORTH ARE BEING DISTRIBUTED TO THE OTHER UNITS AS REPORTED THE HEAD OF THAT UNIT WILLOW SHIRE WILL RESIGN AT THE END OF THIS MONTH NO OTHER RESIGNATIONS ARE EXPECTED AND NONE OF THE OTHER FOUR EXECUTIVES WERE AVAILABLE TO COMMENT A SPOKESMAN SAID FIVE OTHER MEN WILL GET SUBSTANTIAL NEW RESPONSIBILITIES IN THE LATEST CHANGES JESSE LIPCON ONE OF DIGITAL'S TOP ENGINEERS WILL RUN THE HUGE BUT AGING VAX COMPUTER LINE LARRY WALKER NETWORKING CHIEF WILL RUN AN EXPANDED UNIT WITH THE SAME FOCUS PETER SMITH VICE PRESIDENT FOR EUROPEAN SALES AND MARKETING TAKES OVER A PRINTER AND SUPPLIES BUSINESS BUD ENRIGHT PRODUCT MARKETING VICE PRESIDENT IS EXPECTED TO RUN A NEW SOFTWARE UNIT AND WILLI SHIH WHO NOW OVERSEES THE ALPHA P. C. PROGRAM WILL EXPAND HIS ROLE TO OVERSEE SALES EFFORTS BASED AROUND UNIX AND WINDOWS N. T. SOFTWARE OPERATING SYSTEMS THE DIGITAL SPOKESMAN DECLINED LAST NIGHT TO DISCUSS THE CHANGES IN DETAIL EXCEPT TO SAY THEY'RE STILL EVOLVING AND THE STRONG INDUSTRY FOCUS WILL CONTINUE EVEN THOUGH THE STRUCTURE MAY CHANGE HE INSISTED THE MOVES WERE UNDERTAKEN QUOTE TO BALANCE THE SEPARATE PRODUCT AND INDUSTRY MARKETING EFFORTS QUOTE NOT TO BOOST ONE AT THE EXPENSE OF ANOTHER IT'S ALL STILL BEING WORKED OUT HE SAID SO MUCH FOR AIRPORT SECURITY ON A FEW HOURS' NOTICE THIS REPORTER FLEW TO GENEVA LAST MONTH ON LUFTHANSA GERMAN AIRLINES TO COVER WORLD TRADE NEGOTIATIONS FLYING INTO FRANKFURT FOR A CONNECTION AN AWFUL DETAIL BECAME OBVIOUS MY PASSPORT HAD EXPIRED SIX MONTHS EARLIER IN JUNE THE LUFTHANSA TICKET COUNTER AGENT AT WASHINGTON'S NATIONAL AIRPORT HADN'T NOTICED THE EXPIRATION WHEN SHE CHECKED THE PASSPORT MAKING MY CONNECTION IN FRANKFURT THE LUFTHANSA AGENT ONLY NEEDED TO SEE A BOARDING PASS AS IS PROCEDURE IN GENEVA TWO PASSPORT INSPECTORS STOOD GUARD IN BOOTHS AT THE AIRPORT ONE SEEMED LIKE A YOUNG EAGER BEAVER THE OTHER DIDN'T I CHOSE THE LATTER HE OPENED THE PASSPORT CHECKED IT AND YES WAVED ME ON I MADE IT IN BUT WAS THIS AN INDICATOR OF AIRPORT SECURITY QUOTE IT'S AMAZING THAT YOU WENT THROUGH TWO CHECKS AND NONE OF THEM FOUND OUT QUOTE SAYS YISRAEL BOIM PRESIDENT OF AIR SECURITY INTERNATIONAL A HOUSTON CONSULTING FIRM IT IS TROUBLING BECAUSE THAT IS THE ONLY CONTROL THAT PEOPLE HAVE TODAY TO MAKE SURE THAT NEGATIVE ELEMENTS DON'T GO THROUGH THE COUNTRY PRIVATELY A LUFTHANSA OFFICIAL EXPLAINS THE OVERSIGHT AS HUMAN ERROR BUT ASSERTS PASSPORTS HAVE BECOME LESS SIGNIFICANT WITH THE OPENING OF EUROPEAN BORDERS AND WAIVING OF VISA RULES SWITZERLAND DOESN'T REQUIRE VISAS FOR U. S. CITIZENS AND VICE VERSA THE INSPECTOR'S FAILURE TO CHALLENGE ME HOWEVER WAS LET US SAY AN ACCIDENT SAYS ROLAND MOSER A SWISS OFFICIAL IN WASHINGTON IT SEEMS AS IF HE JUST CLOSED BOTH EYES BUT THAT DOESN'T MEAN EXPIRED PASSPORTS ARE O. K. RICHARD KENNEY A U. S. IMMIGRATION AND NATURALIZATION SERVICE SPOKESMAN SAYS A SWISS CITIZEN TRYING TO ENTER THE U. S. WITH AN EXPIRED PASSPORT WOULDN'T BE SO LUCKY HE SAYS YOU WOULD HAVE BEEN EXCLUDED THE BEST ADVICE CHECK YOUR PASSPORT BEFORE HEADING ABROAD THIS WAS THE DILEMMA THE LUFTHANSA TICKET READ WASHINGTON FRANKFURT GENEVA WITH THE SAME ROUTING FOR THE RETURN BUT IN GENEVA PLANS CHANGED A ONE WAY TRAIN RIDE TO PRAGUE ENTERED THE ITINERARY PLUS THE IDEA OF STOPPING IN LONDON ON THE WAY BACK COULD THE RETURN TICKET BE CHANGED WITHOUT MUCH COST LOCAL LUFTHANSA TICKETING AGENTS COULDN'T SAY THEIR COMPUTERS WERE DOWN CHECK IN PRAGUE AN AGENT ADVISED NOTING QUOTE IT SHOULDN'T COST MUCH MORE QUOTE INDEED IN PRAGUE A LUFTHANSA AGENT EASILY TRANSFERRED THE TICKET TO BRITISH AIRWAYS SCRIBBLING THE INITIALS B. A. AT THE TOP BRITISH AIRWAYS IN TURN RE ISSUED A TICKET TO WASHINGTON FROM PRAGUE VIA LONDON THE EXTRA COST ONLY ONE HUNDRED NINE DOLLARS EVEN WITH THIS DETOUR IN PRAGUE THE LESSON AT THE PASSENGER'S REQUEST AIRLINES WILL TRANSFER SO CALLED EXCURSION FARES FOR OVERSEAS TRAVEL TO EACH OTHER WITH SOMETHING REFERRED TO AS VOLUNTARY ENDORSEMENTS INVOLUNTARY ENDORSEMENTS HAPPEN WHEN A PASSENGER WANTS A TRANSFER TO ANOTHER AIRLINE BECAUSE OF SOMETHING LIKE A MECHANICAL FAILURE OR SCHEDULING DELAY BUSINESS TRAVELERS USUALLY OPT FOR THESE LAST MINUTE FARES WHICH ARE MORE EXPENSIVE THAN THE ADVANCE PURCHASE FARES POPULAR AMONG VACATIONERS THE BENEFIT IS THAT NEW ROUTINGS DON'T COST MUCH MORE IF ANYTHING NOTES JEFF WRIGHT BRITISH AIRWAYS' PRICING MANAGER IN THE U. S. THE EXCURSION FARES DON'T CARRY ROUTE RESTRICTIONS THE COUP IN THIS SITUATION FREQUENT FLIER MILES FROM BOTH BRITISH AIRWAYS AND LUFTHANSA CAN BE TRANSFERRED TO U. S. AIR IT'S A SIMPLE CONCEPT CHECKING YOUR VOICE MAIL WHEN YOU'RE AWAY FROM THE OFFICE BUT IT'S NOT SO SIMPLE OVERSEAS EVEN FROM AN OTHERWISE TECHNOLOGICALLY DEVELOPED PLACE LIKE THE GENEVA HILTON HOTEL ONE SOLUTION TONE GENERATORS THESE ELECTRONIC GIZMOS ABOUT THE SIZE OF A BEEPER ARE HIGH TECH COUSINS OF GADGETS THAT EMERGED IN THE NINETEEN SEVENTIES THESE OFTEN CAME WITH ANSWERING MACHINES AS A WAY TO CHECK MESSAGES WHILE AWAY FROM THE HOME OR OFFICE PHONES MOSTLY USED ROTARY LINES AT THE TIME AND DIDN'T PICK UP TONE COMMANDS AS THEY DO TODAY TO RETRIEVE ANSWERING MACHINE MESSAGES YOU PUT THE TONE GENERATOR AGAINST THE RECEIVER AND KEY INTO THE DEVICE THE APPROPRIATE COMMANDS TODAY MOST PHONES IN THE U. S. USE TOUCH TONE LINES BUT THAT ISN'T SO OVERSEAS IT'S REALLY PROBLEMATIC SAYS JOE BRANCATELLI TRAVEL ADVISER AT TRAVEL HOLIDAY A MONTHLY MAGAZINE I TAKE MY BLACK BOX WITH ME WHEN I'M TRAVELING SOME ARE PROGRAMMABLE SO USERS CAN ENCODE THEM WITH FOR EXAMPLE LONG DISTANCE ACCESS NUMBERS ONE VETERAN USER IS SKEPTICAL NOTING THE DEVICE IS SOMETIMES A DUD AND DOESN'T SEND SIGNALS BUT EDSEL ECTOR A SALESMAN AT A RADIO SHACK STORE IN DOWNTOWN WASHINGTON EXTOLS THE VIRTUES OF THE TECHNOLOGY FOR TRAVELERS WE JUST HAD A GUY COME IN TODAY WHO WANTED TO BUY SIX OF THEM FOR HIS OFFICE BUT WE HAD RUN OUT OF THEM FOR THE JOB IT DOES THERE'S NOTHING TO COMPETE WITH IT IT CERTAINLY BEATS PUNCHING BUTTONS TO NO AVAIL SOME FASHION ADVICE FOR THE OVERSEAS TRAVELER THONG SANDALS ARE THE STANDARD FOOTWEAR IN THE WEIGHT ROOM AT THE SLAVIA GYMNASIUM'S FIT CLUB CLASSIC IN PRAGUE WHERE MANY HEALTH CLUBS PREFER THEM OVER SNEAKERS AN OFFICIAL AT THE RITZ IN LONDON KICKED OUT TWO VISITORS STOPPING FOR TEA AT THE HOTEL'S LOBBY RESTAURANT THE PALM COURT QUOTE NO JEANS ALLOWED QUOTE HE SAID ROBERT BERNARD PRESIDENT OF LIZ CLAIBORNE INCORPORATED'S INTERNATIONAL DIVISION RESIGNED TO BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF J. CREW GROUP INCORPORATED A PRIVATELY HELD APPAREL RETAILER MR. BERNARD FORTY THREE YEARS OLD WHO HAS HELD VARIOUS SALES AND MARKETING POSITIONS AT CLAIBORNE SINCE NINETEEN EIGHTY FIVE SAID HE WILL JOIN NEW YORK BASED J. CREW IN ABOUT TWO WEEKS HE SAID J. CREW WHICH HAS ANNUAL SALES OF MORE THAN SEVEN HUNDRED MILLION DOLLARS WILL GIVE HIM A QUOTE FANTASTIC OPPORTUNITY TO WORK WITH A GREAT RETAILER AND MANUFACTURER IN OUR INDUSTRY QUOTE MR. BERNARD FILLS A POSITION THAT HAD BEEN VACANT SINCE JULY NINETEEN NINETY THREE WHEN ARNOLD COHEN LEFT J. CREW TO BECOME CHIEF EXECUTIVE AT LONDON FOG AN OUTERWEAR MAKER MR. BERNARD WILL REPORT TO ARTHUR CINADER J. CREW'S CHAIRMAN AND CHIEF EXECUTIVE GITANO GROUP INCORPORATED'S DIRECTORS VOTED TO PUT THE COMPANY UP FOR SALE AFTER ONE OF ITS BIGGEST CUSTOMERS WAL MART STORES INCORPORATED REFUSED TO CONTINUE TO DO BUSINESS WITH THE APPAREL MARKETER WHICH RECENTLY PLEADED GUILTY TO VIOLATIONS OF U. S. CUSTOMS LAWS LATE YESTERDAY GITANO SAID THAT IT RECEIVED NOTIFICATION THAT A QUOTE PRINCIPAL CUSTOMER QUOTE COULD NO LONGER DO BUSINESS WITH GITANO BECAUSE OF THE CUSTOMS VIOLATIONS GITANO DECLINED TO IDENTIFY THE RETAILER BUT A WAL MART SPOKESWOMAN CONFIRMED THAT THAT COMPANY IS THE RETAILER IN QUESTION GITANO SAID THAT WAL MART AND KMART CORPORATION REPRESENTED ABOUT SEVENTY FIVE PERCENT OF GITANO'S SALES IN NINETEEN NINETY THREE TRADING IN GITANO SHARES WAS HALTED PRIOR TO THE STATEMENT THE SHARES WERE QUOTED AT TWO DOLLARS ON VOLUME OF TWO HUNDRED NINETEEN THOUSAND TWO HUNDRED SHARES ON THE NEW YORK STOCK EXCHANGE IN BENTONVILLE ARKANSAS A WAL MART SPOKESWOMAN SAID WAL MART HAS A STRICT STANDARD FOR VENDOR PARTNERS REFERRING TO AN AGREEMENT THAT VENDORS ARE REQUIRED TO SIGN WHICH INCLUDES POLICIES REGARDING THE IMPORTATION OF MERCHANDISE SHE ADDED WE HAVE DROPPED OTHER VENDORS WHO WERE IN VIOLATION WITH OUR AGREEMENT AND WE HAVE NO OTHER CHOICE BUT TO DISCONTINUE BUSINESS WITH GITANO IT WAS A TOUGH DECISION FOR US BECAUSE GITANO HAS BEEN A BIG PART OF OUR BUSINESS AS REPORTED LAST DECEMBER GITANO AND THREE OF ITS FORMER TOP EXECUTIVES AGREED TO PLEAD GUILTY TO FELONY CHARGES IN CONNECTION WITH A SCHEME DESIGNED TO CIRCUMVENT IMPORT QUOTA RESTRICTIONS ON TWO POINT SEVEN SIX MILLION DOLLARS OF BLOUSES IMPORTED BY THE COMPANY IN NINETEEN NINETY ONE AND NINETEEN NINETY TWO IN A STATEMENT YESTERDAY ROBERT E. GREGORY JUNIOR GITANO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IT IS UNFORTUNATE THAT THE EFFORTS OF THE NEW MANAGEMENT TEAM TO REBUILD THE COMPANY HAVE BEEN UNDERMINED BY THE EVENTS WHICH OCCURRED IN NINETEEN NINETY ONE AND NINETEEN NINETY TWO UNDER GITANO'S PRIOR MANAGEMENT AND WHICH DO NOT RELATE TO GITANO TODAY UNDER ITS CURRENT MANAGEMENT HE SAID THAT A SALE OF GITANO IS THE BEST MEANS TO SERVE THE INTERESTS OF OUR COMPANY'S CONSTITUENTS GITANO WHICH MARKETS BLUE JEANS AND BUDGET APPAREL TO MASS MERCHANDISERS HAD A LOSS OF FORTY EIGHT POINT SEVEN MILLION DOLLARS OR THREE DOLLARS AND FIVE CENTS A SHARE ON REVENUE OF THREE HUNDRED ONE POINT NINE MILLION DOLLARS IN THE FIRST NINE MONTHS OF LAST YEAR GITANO HAS BEEN LABORING TO REVIVE ITS FALTERING BUSINESS AFTER YEARS OF OVEREXPANSION AND MANUFACTURING PROBLEMS AFTER CLOSING CERTAIN DIVISIONS AND DOWNSIZING ITS BUSINESS GITANO ANNOUNCED LAST FALL THAT IT WOULD CEASE MANUFACTURING APPAREL INSTEAD GITANO PLANNED TO SELL ITS MARKETING SERVICES AND ITS GITANO LABEL TO RETAILERS WHO WOULD IN TURN BE RESPONSIBLE FOR MANUFACTURING THE MERCHANDISE THAT NEWS WAS INITIALLY MET WITH SKEPTICISM BY OFFICIALS FROM SEVERAL MASS MERCHANTS INCLUDING WAL MART WHO SAID THAT THEY WOULDN'T NECESSARILY BE WILLING TO MANUFACTURE THEIR OWN GITANO LABEL APPAREL GITANO SAID IT IS QUOTE IN THE PROCESS OF HIRING QUOTE KURT SALMON ASSOCIATES APPAREL CONSULTANTS TO HELP IT FIND A BUYER MR. GREGORY SAID THAT GITANO HOPES TO COMPLETE A SALE OF THE COMPANY AS SOON AS POSSIBLE TO AVOID ANY INTERRUPTION OF THE FIVE HUNDRED MILLION DOLLARS IN RETAIL VOLUME THAT GITANO EXPECTS FOR NINETEEN NINETY FOUR MR. GREGORY SAID THAT GITANO'S BRAND NAME AND ITS ORGANIZATION HOLD CONSIDERABLE VALUE AND SHOULD HELP THE COMPANY ATTRACT STRONG INTEREST FROM POTENTIAL PURCHASERS HE ADDED HOWEVER IN LIGHT OF CURRENT CIRCUMSTANCES IT IS UNLIKELY THAT A SALE OF GITANO WILL REALIZE AN AMOUNT IN EXCESS OF THE ONE HUNDRED THIRTY MILLION DOLLARS GITANO OWES TO ITS SECURED LENDERS LAST NOVEMBER GITANO SAID IT EXPECTED ITS LOSS FOR THE YEAR NINETEEN NINETY THREE TO RANGE FROM FIFTY FIVE MILLION DOLLARS TO SIXTY MILLION DOLLARS COMPARED WITH A NINETEEN NINETY TWO LOSS OF TWO HUNDRED THIRTY SEVEN POINT NINE MILLION DOLLARS REFLECTING THE CLOSING OR SALE OF SEVERAL OF ITS DIVISIONS GITANO'S THIRD QUARTER SALES DROPPED NEARLY SIXTY EIGHT PERCENT TO SEVENTY SIX POINT ONE MILLION DOLLARS DOWN FROM TWO HUNDRED THIRTY SIX POINT ONE MILLION DOLLARS A YEAR EARLIER HONEYWELL INCORPORATED SAID IT REACQUIRED THE SUBSIDIARY IT SOLD IN NINETEEN EIGHTY SIX WHEN IT DIVESTED ITSELF OF ITS SOUTH AFRICAN OPERATIONS IN OPPOSITION OF APARTHEID THE MINNEAPOLIS CONTROLS CONCERN SAID IT PURCHASED THE MARTECH BUSINESS OF MURRAY AND ROBERTS A JOHANNESBERG ENGINEERING AND CONSTRUCTION FIRM CREATING HONEYWELL SOUTHERN AFRICA PTY LIMITED MARTECH DISTRIBUTES HONEYWELL SYSTEMS AND PRODUCTS IN SOUTH AFRICA AND OTHER SUB SAHARAN COUNTRIES TERMS WEREN'T DISCLOSED BUT IN AUGUST HONEYWELL ENTERED INTO AN OPTION PACT TO BUY BACK THE UNIT IN EXPECTATION OF AN INVITATION FROM THE AFRICAN NATIONAL CONGRESS FOR U. S. COMPANIES TO REINVEST IN SOUTH AFRICA UNDER THAT PACT WHICH WAS TO EXPIRE NOVEMBER FIRST NINETEEN NINETY SIX HONEYWELL HAD TO EXERCISE THE OPTION IF THE A. N. C. CALLED FOR THE LIFTING OF SANCTIONS AGAINST SOUTH AFRICA AND IF HONEYWELL WAS SATISFIED THE PURCHASE WOULDN'T EFFECT ITS BUSINESS RELATIONSHIPS WITH U. S. MUNICIPALITIES THAT RESTRICT SUPPLIERS' INVOLVEMENT IN SOUTH AFRICA WILLIAM PERRY WAS NOMINATED BY CLINTON TO BE SECRETARY OF DEFENSE THE PRESIDENT NOMINATED THE DEPUTY DEFENSE SECRETARY TO SUCCEED ASPIN IN THE TOP PENTAGON JOB PERRY SIXTY SIX A LOW KEY MATHEMATICIAN AND MILITARY TECHNOLOGIST WHO IS HELD IN HIGH REGARD ON CAPITOL HILL IS EXPECTED TO WIN SENATE CONFIRMATION EASILY HE LACKS EXTENSIVE FOREIGN POLICY EXPERIENCE AND HIS VIEWS ARE STRONGEST ON THE NEED FOR AN ACTIVIST DEFENSE INDUSTRIAL POLICY HE TALKED YESTERDAY OF THE NEED TO REFORM THE SYSTEM OF BUYING WEAPONS AND OTHER GOODS BOBBY INMAN PROPOSED HAVING PERRY REPLACE HIM AS THE NOMINEE LAST WEEK WHEN INMAN WITHDREW HIS NAME PEOPLE CLOSE TO THE SITUATION SAID ABORTION RIGHTS FORCES WON A PROCEDURAL VICTORY AS THE SUPREME COURT SAID THEY MAY USE THE FEDERAL RACKETEERING LAW AS A WEAPON AGAINST PROTESTERS WHO TRY TO SHUT DOWN ABORTION CLINICS THE UNANIMOUS RULING WILL ALLOW THE NATIONAL ORGANIZATION FOR WOMEN TO PROCEED WITH A CIVIL LAWSUIT ALLEGING THAT OPERATION RESCUE AND OTHER GROUPS ENGAGED IN A NATIONWIDE CONSPIRACY TO USE HARASSMENT AND VIOLENCE TO FORCE CLINICS TO CLOSE THE COURT'S DECISION COULD IMPERIL MILITANT ANTIABORTION GROUPS BECAUSE RICO ALLOWS PLAINTIFFS TO SEEK DAMAGES EQUAL TO TRIPLE THEIR ACTUAL HARM THE PRESIDENT WANTS TO SUBMIT A WELFARE OVERHAUL PROPOSAL TO CONGRESS QUICKLY MAYBE AS EARLY AS LATE FEBRUARY THE PRESIDENT WILL EMPHASIZE THE NEED FOR CHANGING THE WELFARE SYSTEM IN HIS STATE OF THE UNION ADDRESS TONIGHT HE ALSO WILL STRESS HEALTH CARE REFORM ANTICRIME MEASURES AND WORKER RETRAINING ABOUT FOUR BILLION DOLLARS WILL BE REQUESTED IN CONGRESSIONAL APPROPRIATIONS TO HELP CALIFORNIA COPE WITH LAST WEEK'S EARTHQUAKE ACCORDING TO LAURA TYSON THE HEAD OF THE WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS CLINTON'S TOP ADVISER ON RUSSIA WARNED THAT ANY BACKSLIDING THERE COULD LEAD TO HYPERINFLATION AND POLITICAL CHAOS TALBOTT SAID THAT QUOTE SLOWING THE PACE OF REFORM WILL NOT EASE THE SOCIAL PAIN OF ECONOMIC TRANSITION QUOTE HIS WARNING CONTRASTED WITH HIS EARLIER SUGGESTION THAT RUSSIA NEEDED LESS SHOCK AND MORE THERAPY RUSSIA'S NEW ECONOMICS MINISTER LASHED OUT AT REFORMERS FOR REFUSING TO JOIN THE CABINET AND PREDICTED HIGH INFLATION IN JANUARY MEANWHILE YELTSIN DIDN'T ACCEPT FINANCE MINISTER FYODOROV'S RESIGNATION THE FUTURE OF EUROPE IS AT STAKE IN BOSNIA AND ONLY SWIFT RETALIATORY AIR STRIKES WILL END AGGRESSION BY THE WARRING FACTIONS THE U. N. COMMANDER IN THE FORMER YUGOSLAVIA SAID THE COMMANDER GENERAL JEAN COT IS BEING RECALLED BY U. N. CHIEF BOUTROS GHALI BECAUSE OF HIS PUBLIC COMMENTS CONCERNING THEIR DISPUTE OVER THE NEED FOR AIR STRIKES BOUTROS GHALI QUESTIONED NATO'S WILLINGNESS TO USE FORCE IN BOSNIA AND HE URGED MORE DIPLOMACY MEANWHILE THE U. S. REJECTED A FRENCH SUGGESTION TO IMPOSE BORDERS ON THE WARRING FACTIONS CLINTON SAID THERE WERE LIMITS TO HOW MUCH OTHER NATIONS CAN DO MEDICAL PLANES EVACUATED TWO YOUNG BROTHERS HURT IN A SARAJEVO MORTAR ATTACK SENATOR PACKWOOD MUST TURN OVER HIS DIARIES TO THE SENATE ETHICS COMMITTEE WHICH IS INVESTIGATING ALLEGATIONS OF SEXUAL MISCONDUCT A FEDERAL JUDGE RULED THE JUDGE SAID THE PANEL WILL RESPECT THE OREGON REPUBLICAN'S EXPECTATIONS OF PRIVACY THE E. P. A. WILL REQUIRE THAT NEW CARS AND TRUCKS INCLUDE A DEVICE THAT CAPTURES GASOLINE VAPORS THAT OTHERWISE WOULD ESCAPE INTO THE ATMOSPHERE DURING REFUELING THE DEVICE IS AN ENLARGED VERSION OF THE CHARCOAL FILLED CANISTER REQUIRED ON CURRENT MODEL AUTOS JAPAN'S PRIME MINISTER SOUGHT TO SAVE HIS POLITICAL REFORM PACKAGE BY NEGOTIATING A COMPROMISE WITH OPPONENTS BUT PROSPECTS WERE DIM THAT ANY ACCORD COULD BE REACHED ON THE REFORMS THE NAVY INSPECTOR GENERAL'S OFFICE SAID THAT ONE HUNDRED THIRTY THREE MIDSHIPMEN MAY HAVE CHEATED ON AN ELECTRICAL ENGINEERING EXAM TAKEN IN NINETEEN NINETY TWO AT THE NAVAL ACADEMY EIGHTY ONE MIDSHIPMEN HAVE ADMITTED CHEATING ISRAEL RESUMED WASHINGTON PEACE TALKS WITH REPRESENTATIVES OF SYRIA LEBANON JORDAN AND THE P. L. O. AMID UNUSUAL SECRECY THE P. L. O.'S ARAFAT MADE HIS FIRST VISIT TO SAUDI ARABIA SINCE THE GULF WAR JIMMY JOHNSON WHO COACHES THE DALLAS COWBOYS LIKES TO TALK ABOUT HIS TEAM AS A SERIES OF PIECES THAT WHEN ASSEMBLED COMPLETE A QUOTE PUZZLE QUOTE THE BURDEN OF SOLVING IT HOWEVER IS NOT HIS BUT OTHERS' THERE'S THE GUY WHO CAN THROW QUARTERBACK TROY AIKMAN AND THE GUYS WHO CAN CATCH MICHAEL IRVIN AND ALVIN HARPER THERE'S EMMITT SMITH WHO CAN RUN AND SOME VERY BIG GUYS TO BLOCK FOR HIM WHEN THE OTHER TEAM HAS THE BALL THERE ARE THE GUYS WHO CHASE AND TACKLE BUT TO HAVE WATCHED THE BOYS THIRTY EIGHT TO TWENTY FOUR DEFEAT OF THE SAN FRANCISCO FORTY NINE ERS HERE SUNDAY IN A SUPER BOWL SEMIFINAL A K. A THE NATIONAL CONFERENCE CHAMPIONSHIP GAME WAS TO UNDERSTAND HOW NEATLY EVEN THEIR SIDE PIECES FIT TUCKED AWAY THERE FOR INSTANCE WAS DARRYL JOHNSTON THE FULLBACK WHO USUALLY SERVES AS AN ANONYMOUS SORT OF BEHIND THE LINE OFFENSIVE LINEMAN BLOCKING FOR THOSE SWIFTER THAN HE YET IN THE SECOND QUARTER WHILE THE ISSUE IN THE SOON TO BE ONE SIDED CONTEST STILL WAS IN DOUBT THERE WAS DARRYL SLIPPING UP THE MIDDLE FOR FOUR YARDS TO SCORE A TOUCHDOWN MAKING A NICE LITTLE RUN FOR A FIRST DOWN ON HIS TEAM'S NEXT T. D. DRIVE AND CATCHING A PASS AND CARRYING FOR ANOTHER FIRST DOWN ON THE NEXT DOING THAT OFFENSIVE STUFF WAS SPECIAL BECAUSE THEY DON'T LET ME HAVE THE BALL ALL THAT MUCH SAID THE TWENTY EIGHT YEAR OLD WHO GRADUATED FIRST AMONG TWO HUNDRED NINETY IN HIS HIGH SCHOOL CLASS IN YOUNGSTOWN N. Y. BEING IN THE SAME LINEUP WITH EMMITT MICHAEL AND ALVIN GIVES ME A CHANCE TO FOOL 'EM SOMETIMES THEY CAN'T EXACTLY SET THEIR DEFENSES FOR ME CAN THEY THE NEXT TEAM TO TRY TO SOLVE THE COWBOYS CONUNDRUM WILL BE THE BUFFALO BILLS IN THE S. B. PROPER ON SUNDAY NEXT IN ATLANTA THEY QUALIFIED EARLIER IN THE DAY BY BEATING JOE MONTANA AND THE KANSAS CITY CHIEFS THIRTY TO THIRTEEN ON THEIR HOME GROUNDS IN ORCHARD PARK N. Y. YOU MAY RECALL THAT THE BILLS HAVE BOWLED IT BEFORE THE PAST THREE YEARS TO BE EXACT AND HAVE BEEN BOWLED OVER AS OFTEN BY MARGINS OF ONE THIRTEEN AND THIRTY FIVE POINTS THE COWBOYS DID IT TO 'EM LAST YEAR FIFTY TWO TO SEVENTEEN AND OFF THEIR SUNDAY EFFORT WILL BE FAVORED TO DO IT AGAIN IF YOU WANT TO BACK THE BILLS INSIST ON SOME POINTS THIRTY OR SO SEEMS ABOUT RIGHT YES THE BILLS' SUNDAY WIN WAS IMPRESSIVE BUT THE COWBOYS' WAS MORE SO THE FORTY NINE ERS CAME HERE BOASTING THE NATIONAL FOOTBALL LEAGUE'S BEST REGULAR SEASON OFFENSE AND MOST ONE SIDED POSTSEASON WIN A FORTY FOUR TO THREE SLAUGHTER OF THE NEW YORK GIANTS THE WEEK BEFORE THEY TOO WERE WELL STOCKED WITH SPEEDY SLASH SLIPPERY SLASH ROUGH SLASH TOUGH TYPES THE SPEEDIEST SLASH SLIPPERIEST BEING JERRY RICE THE BEST WIDE RECEIVER EVER BUT THIS ONE WAS OVER A GOOD BIT BEFORE IT WAS OVER BY HALFTIME REALLY WHEN DALLAS LED TWENTY EIGHT TO SEVEN AFTER SCORING TOUCHDOWNS ON FOUR OF ITS FIVE BALL POSSESSIONS WHILE ITS CORNERBACKS KEVIN SMITH AND LARRY BROWN WERE CONTAINING RICE THE BOYS WOULD WIN IT EVEN THOUGH QUARTERBACK AIKMAN WOULD LEAVE THE GAME FOR GOOD EARLY IN THE THIRD QUARTER AFTER BEING KNEED IN THE HEAD BY FORTY NINE E. R. LINEMAN DENNIS BROWN AND EMMITT SMITH THE LEAGUE'S AND GAME'S LEADING RUSHER WOULD BE RELIEVED WITH MOST OF THE LAST QUARTER REMAINING TO PROTECT AN IFFY SHOULDER I DON'T THINK ANYBODY IN A MILLION YEARS THOUGHT IT WOULD BE THIS TYPE OF BALLGAME THEY EXECUTED AGAINST US BOTH OFFENSIVELY AND DEFENSIVELY SAID GEORGE SEIFERT THE SAN FRANCISCO COACH I GUESS WHEN YOU'VE BEEN EXECUTED YOU KNOW IT SMITH'S BEST PLAY WAS A RECEPTION AN ELEVEN YARDER THAT SCORED THE TOUCHDOWN THAT PUT HIS TEAM AHEAD TWENTY ONE TO SEVEN IN QUARTER TWO HE SLIPPED OUT OF THE BACKFIELD CAUGHT AIKMAN'S PASS OVER THE MIDDLE AND WENT IN UNTOUCHED QUOTE THEY FORGET ABOUT ME I GUESS QUOTE HE LATER SMILED BUSY WATCHING DARRYL JOHNSTON PROBABLY AIKMAN WENT DOWN AND OUT WITH HIS TEAM LEADING TWENTY EIGHT TO SEVEN THE FORTY NINE ERS QUICKLY CUT THE MARGIN TO TWO TOUCHDOWNS TWENTY EIGHT TO FOURTEEN AND STIRRED A BIT OF APPREHENSION AMONG THE TEXAS STADIUM FULL HOUSE BY HOLDING THE HOME TEAM NOW QUARTERBACKED BY THE STORKY VETERAN BERNIE KOSAR TO BUT A YARD ON ITS FIRST TWO PLAYS ON THE DALLAS NINETEEN YARD LINE ON ITS NEXT POSSESSION BUT KOSAR GOT A FIRST DOWN WITH A TWELVE YARD COMPLETION TO IRVIN AND FOUR PLAYS LATER HIT THE LEAPING HARPER WITH A SHORT PASS TO WHICH THE LATTER ADDED A LONG RUN FOR A FORTY TWO YARD TOUCHDOWN AND THAT WAS THAT AT AGE THIRTY KOSAR WILL BE MAKING HIS FIRST SUPER BOWL TRIP AFTER TWICE BOWING OUT IN THE SEMIS WITH HIS FORMER TEAMMATES IN CLEVELAND JUST ABOUT EVERYBODY PROBABLY INCLUDING BERNIE WOULD BE HAPPIEST IF AIKMAN WERE HALE FOR THE BUFFALO GAME THAT SEEMED LIKELY ON SUNDAY EVEN THOUGH AIKMAN WAS TO SPEND SUNDAY NIGHT IN A HOSPITAL FOR OBSERVATION FOR A CONCUSSION HE'LL PROBABLY HAVE A HEADACHE FOR THE FIRST FEW DAYS THIS WEEK AND GET ANOTHER ONE THEREAFTER FROM ANSWERING SEVERAL THOUSAND TIMES BETWEEN TOMORROW AND SUNDAY THE QUESTION FROM THE PRESS ABOUT HOW HIS HEAD FEELS SO LOPSIDED WAS THE DALLAS TRIUMPH THAT MOST POSTGAME QUESTIONING CENTERED NOT ON THIS PLAY OR THAT BUT ON COACH JOHNSON'S SILLY MIDWEEK STATEMENT TO A LOCAL RADIO CALL IN SHOW GUARANTEEING A COWBOYS WIN JOHNSON SAID HE DID IT TO LOOSEN UP HIS PLAYERS WHOM HE PERCEIVED AS A BIT TIGHT EARLY IN THE WEEK BUT VARIOUS COWBOYS SAID THE DECLARATION MAINLY AMUSED THEM TIGHT IF YOU SAW US LAST WEEK YOU'D HAVE THOUGHT IT WAS A KINDERGARTEN CLASS LAUGHED EMMITT SMITH A VERY BIG SLASH FAST SLASH ROUGH SLASH TOUGH KINDERGARTEN CLASS SEX DIDN'T SELL THIS CHRISTMAS AT LEAST NOT AT MANY PERFUME COUNTERS HOLIDAY SALES OF MANY MASS MARKET WOMEN'S FRAGRANCES SLUMPED DURING THE CRITICAL FOURTH QUARTER WHEN PERFUME MARKETERS TYPICALLY MAKE SIXTY PERCENT TO EIGHTY PERCENT OF THEIR ANNUAL SALES THE ONE HIT OF THE SEASON VANILLA FIELDS FROM THE COTY UNIT OF JOH A. BENCKISER GMBH USED A DECIDEDLY WHOLESOME PITCH RATHER THAN IMAGES OF LOVERS EMBRACING ADS FOR THE NEW BRAND FEATURED A FIELD OF FLOWERS AND A SINGLE HUMMINGBIRD QUOTE IT'S A NATURAL POSITIONING QUOTE SAYS JERRY ABERNATHY PRESIDENT OF COTY THAT'S WHY WE DIDN'T GO WITH A TYPICAL GIRL USES FRAGRANCE GIRL GETS BOY APPROACH ANOTHER ELEMENT IN VANILLA FIELDS' SUCCESS MAY BE ITS RELIANCE ON A BAKING INGREDIENT RATHER THAN A STRONG FLORAL NOTE MANY FRAGRANCES NOWADAYS INCLUDING EXCLAMATION BY COTY SMELL MORE LIKE FRUITS THAN FLOWERS ONE EXCEPTION THE SIXTY SIX YEAR OLD TABU BRAND WHICH ITS MARKETERS SAY IS TYPICALLY FAVORED BY OLDER WOMEN MOST MARKETERS CONCEDE THAT INDUSTRY SALES HAVE BEEN HURT BY THE ECONOMY AS SHOPPERS TRADE DOWN TO SMALLER BOTTLES AND FIERCE PRICE COMPETITION AMONG RETAIL OUTLETS KEEPS PRICES LOW SALES OF WOMEN'S FRAGRANCES BY SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS THE OUTLETS THAT ACCOUNT FOR ABOUT TWO THIRDS OF ALL FRAGRANCE SALES DROPPED NINE PERCENT DURING THE FOURTH QUARTER ACCORDING TO INFORMATION RESOURCES INCORPORATED'S INFOSCAN SERVICE TRADITIONAL MASS MARKET PRODUCTS INCLUDING THE RESILIENT CHARLIE AND GLORIA VANDERBILT FRAGRANCES ALSO FACE MOUNTING COMPETITION FROM AGING DESIGNER FRAGRANCES SUCH AS RED BY GIORGIO MADE BY AVON PRODUCTS INCORPORATED SUCH PRESTIGE FRAGRANCES WHICH MARKETERS SAY ARE SUPPOSED TO BE SOLD ONLY IN DEPARTMENT STORES END UP IN MASS MARKET OUTLETS AFTER BEING RESOLD OR ROUTED THERE BY DISTRIBUTORS U. S. AND JAPANESE NEGOTIATORS DIDN'T MAKE ANY HEADWAY IN THE FIRST DAY OF TWO DAY TRADE NEGOTIATIONS U. S. OFFICIALS SAID THE SO CALLED FRAMEWORK TALKS HAVE BEEN DEADLOCKED OVER U. S. INSISTENCE THAT JAPAN AGREE TO TARGETS FOR INCREASING IMPORTS JAPANESE OFFICIALS HAVE RESISTED SUCH DEMANDS AS QUOTE MANAGED TRADE QUOTE AND ACCORDING TO U. S. OFFICIALS THE POLITICAL TURMOIL IN JAPAN HAS MADE THE JAPANESE NEGOTIATORS MORE RESISTANT TO COMPROMISE ALTHOUGH THE TALKS HAD ORIGINALLY BEEN SCHEDULED TO LAST UNTIL TOMORROW U. S. OFFICIALS SAID THEY NOW EXPECT THEM TO END TODAY FOR SOME TIME THE U. S. NEGOTIATING TEAM HAS FIGURED IT WOULD NEED TO TRAVEL TO JAPAN NEXT WEEK FOR ANOTHER ROUND OF TALKS THE TWO SIDES WANT A TRADE DEAL IN TIME FOR A SUMMIT MEETING IN WASHINGTON ON FEBRUARY ELEVENTH BETWEEN PRESIDENT CLINTON AND JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA WE'RE GOING TO KEEP PRESSING THE JAPANESE GOVERNMENT TO TAKE ACTION TO HELP OVERCOME AN UNACCEPTABLY HIGH TRADE DEFICIT SAID COMMERCE SECRETARY RON BROWN WE HAVE GOT TO TAKE TOUGH AND AGGRESSIVE ACTION CLOROX COMPANY BOOSTED BY NEW PRODUCTS SAID PROFIT ROSE THIRTEEN PERCENT IN ITS FISCAL SECOND QUARTER ENDED DECEMBER THIRTY FIRST THE EARNINGS OF THIRTY POINT SIX MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE COMPARE WITH YEAR EARLIER NET INCOME OF TWENTY SEVEN POINT TWO MILLION DOLLARS OR FIFTY CENTS A SHARE REVENUE ROSE THIRTEEN PERCENT TO THREE HUNDRED SEVENTY POINT EIGHT MILLION DOLLARS FROM THREE HUNDRED TWENTY SEVEN POINT FOUR MILLION DOLLARS THE YEAR EARLIER FOR THE FIRST SIX MONTHS THE OAKLAND CALIFORNIA MAKER OF HOUSEHOLD PRODUCTS SAID PROFIT ROSE THIRTY SEVEN PERCENT TO ONE HUNDRED NINE MILLION DOLLARS OR TWO DOLLARS AND ONE CENT A SHARE ON SALES OF EIGHT HUNDRED TWENTY POINT SIX MILLION DOLLARS FROM SEVENTY ONE POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND THIRTY TWO CENTS A SHARE ON SALES OF SEVEN HUNDRED TWENTY TWO MILLION DOLLARS THE YEAR BEFORE THE MOST RECENT SIX MONTH PERIOD INCLUDED A GAIN OF THIRTY TWO POINT ONE MILLION DOLLARS OR FIFTY NINE CENTS A SHARE ON SALE OF DISCONTINUED OPERATIONS THE COMPANY ATTRIBUTED THE IMPROVED QUARTERLY RESULTS PRIMARILY TO THE INCREASE IN SHIPMENTS DRIVEN BY NEW PRODUCTS AND GREATER OPERATING EFFICIENCIES NEW PRODUCTS INCLUDED LIQUID PLUMR BUILD UP REMOVER TILEX SOAP SCUM REMOVER FORMULA FOUR HUNDRED NINE GLASS AND SURFACE CLEANER AND CLOROX TOILET BOWL CLEANSER AND AUTOMATIC TOILETBOWL CLEANER FORD MOTOR COMPANY DETROIT SAID IT IS RECALLING A TOTAL OF ABOUT THREE THOUSAND SIX HUNDRED TRUCKS AND BUSES IN TWO SEPARATE ACTIONS THE FIRST RECALL INVOLVES THREE THOUSAND THREE HUNDRED NINETEEN NINETY FOUR MODEL F. SERIES PICKUP TRUCKS WHOSE AIR BAGS MAY NOT INFLATE IN AN ACCIDENT THAT IS BECAUSE THE AIR BAG DIAGNOSTIC MODULES WERE INTENDED FOR OTHER VEHICLES IN THE SECOND ACTION FORD IS RECALLING ABOUT THREE HUNDRED NINETEEN NINETY FOUR MODEL E. THREE FIFTY SINGLE REAR WHEEL VEHICLES EQUIPPED WITH SCHOOL BUS PREPARATION PACKAGES BECAUSE THE AMOUNT OF WEIGHT REQUIRED TO ENGAGE THE PARKING BRAKE VIOLATES FEDERAL SAFETY STANDARDS FORD SAID IT ISN'T AWARE OF ANY ACCIDENTS OR INJURIES RELATED TO THE RECALLS TRANS WORLD AIRLINES LAUNCHED A DOMESTIC FARE PROMOTION OFFERING DISCOUNTS OF UP TO THIRTY FIVE PERCENT FOR TRAVEL THROUGH MID MAY T. W. A. BASED IN MOUNT KISCO N. Y. SAID THE LOWER PRICED TICKETS WILL BE AVAILABLE FOR SALE STARTING TODAY AND WILL BE GOOD THROUGH MAY FIFTEENTH FOR TRAVEL IN THE CONTINENTAL U. S. HAWAII AND SAN JUAN IN A SEPARATE SMALLER PROMOTION T. W. A. IS OFFERING LOWER FARES TO FLORIDA FROM NEW YORK PHILADELPHIA BOSTON AND WASHINGTON D. C. THE ROUND TRIP FLORIDA FARES ONE HUNDRED NINETY EIGHT DOLLARS MIDWEEK AND TWO HUNDRED FIFTY EIGHT DOLLARS ON WEEKENDS OFFER SAVINGS OF UP TO NEARLY FORTY FIVE PERCENT T. W. A. SAID IT ISN'T CLEAR WHETHER OTHER AIRLINES WILL FOLLOW THE SALE T. W. A.'S SALE SIGNALS THAT THE CARRIER WHICH EMERGED FROM BANKRUPTCY LAW PROTECTION IN NOVEMBER IS MAKING A BID FOR MORE BUSINESS IN THE TRADITIONALLY SLACK PERIODS OF WINTER AND EARLY SPRING AMERICAN TELEPHONE AND TELEGRAPH COMPANY FILED A PROPOSAL TO INCREASE RATES ABOUT FOUR PERCENT ON CERTAIN BUSINESS LONG DISTANCE AND EIGHT HUNDRED SERVICES AND A PROPOSAL TO RESTRUCTURE RATES FOR SMALL BUSINESSES THE RATE INCREASES WOULD GENERATE ABOUT ONE HUNDRED SIXTY FIVE MILLION DOLLARS A YEAR IN ADDITIONAL REVENUE A COMPANY SPOKESWOMAN SAID THE INCREASES WOULD COVER MANY OF THE COMPANY'S DOMESTIC AND INTERNATIONAL BUSINESS SERVICES A. T. AND T. IN BASKING RIDGE N. J. ALSO PROPOSED TO RESTRUCTURE RATES FOR DOMESTIC AND INTERNATIONAL BASIC LONG DISTANCE SERVICE FOR SMALL BUSINESSES SO IT CAN OFFER THOSE CUSTOMERS VOLUME DISCOUNTS RATE INCREASES ARE EFFECTIVE FRIDAY AND THE RESTRUCTURING IS EFFECTIVE MARCH FIRST PENDING FEDERAL COMMUNICATIONS COMMISSION APPROVAL RAW STEEL PRODUCTION BY THE NATION'S MILLS DECREASED ELEVEN POINT NINE PERCENT LAST WEEK TO ONE MILLION SIX HUNDRED SIXTY SEVEN THOUSAND TONS FROM ONE MILLION EIGHT HUNDRED NINETY TWO THOUSAND TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT FELL FIVE POINT NINE PERCENT FROM THE ONE MILLION SEVEN HUNDRED SEVENTY ONE THOUSAND TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED EIGHTY POINT NINE PERCENT OF ITS CAPABILITY LAST WEEK COMPARED WITH NINETY ONE POINT NINE PERCENT THE PREVIOUS WEEK AND EIGHTY THREE POINT EIGHT PERCENT A YEAR AGO THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK JEAN PHILIPPE FRAGRANCES INCORPORATED SIGNED A LETTER OF INTENT TO PURCHASE CERTAIN PRODUCTLINE TRADEMARKS FROM COSMETIQUES ET PARFUMS DE FRANCE I. D. IN A CASH AND STOCK TRANSACTION VALUED AT ABOUT FIVE POINT EIGHT MILLION DOLLARS JEAN PHILIPPE IN NEW YORK WOULD BUY THE PARIS BASED COMPANY'S PARFUMS MOLYNEUX AND PARFUMS WEIL LINES FOR THREE POINT FOUR MILLION DOLLARS AND TWO HUNDRED THOUSAND JEAN PHILIPPE COMMON SHARES IT ALSO INTENDS TO BUY THE PRODUCT LINES' INVENTORY AT COST AN ESTIMATED THREE MILLION DOLLARS A SPOKESMAN SAID JEAN PHILIPPE STOCK CLOSED AT ELEVEN DOLLARS AND TWENTY FIVE CENTS A SHARE DOWN TWENTY FIVE CENTS IN TRADING ON THE NASDAQ STOCK MARKET THE TRADEMARKS COVER MODERATELY PRICED FRAGRANCES DISTRIBUTED IN MORE THAN THIRTY COUNTRIES THEY GENERATED ABOUT THIRTEEN MILLION DOLLARS IN SALES LAST YEAR JEAN PHILIPPE PLANS TO USE THE PRODUCT LINES TO EXPAND INTERNATIONALLY THROUGH ITS INTER PARFUMS UNIT CHAIRMAN JEAN MADAR SAID HE EXPECTS TO SEE QUOTE BENEFITS OF ADDITIONAL SALES AND EARNINGS IN NINETEEN NINETY FOUR QUOTE FROM THE PURCHASE THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF NOTES DUE FEBRUARY THIRD NINETEEN NINETY NINE PRICED INITIALLY AT PAR TO YIELD FIVE POINT TWO THREE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF NINETEEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY FEDERAL NATIONAL MORTGAGE ASSOCIATION TWO HUNDRED MILLION DOLLARS OF MEDIUM TERM NOTES DUE FEBRUARY FIRST NINETEEN NINETY NINE PRICED AT PAR TO YIELD FIVE POINT ONE EIGHT PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF FIFTEEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY GENERAL MOTORS ACCEPTANCE CORPORATION THREE HUNDRED MILLION DOLLARS OF NOTES DUE FEBRUARY FIRST NINETEEN NINETY NINE PRICED AS FIVE POINT SIX TWO FIVES AT NINETY NINE POINT EIGHT SEVEN NINE TO YIELD FIVE POINT SIX FIVE THREE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SIXTY TWO POINT FIVE BASIS POINTS ABOVE TREASURYS RATED B. A A ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND TRIPLE B. PLUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY J. P. MORGAN SECURITIES INCORPORATED GENERAL MOTORS ACCEPTANCE IS A UNIT OF GENERAL MOTORS CORPORATION IMPERIAL CREDIT INDUSTRIES INCORPORATED NINETY MILLION DOLLARS OF SENIOR NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS NINE POINT SEVEN FIVES AT NINETY EIGHT POINT FOUR THREE SEVEN TO YIELD TEN PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLE B. ONE BY MOODY'S AND SINGLE B. BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED DEFLECTA SHIELD CORPORATION INITIAL PUBLIC OFFERING OF TWO MILLION COMMON SHARES AT THIRTEEN DOLLARS APIECE THROUGH CO MANAGERS WILLIAM BLAIR AND COMPANY AND DAIN BOSWORTH INCORPORATED VERTEX PHARMACEUTICALS INCORPORATED THREE MILLION COMMON SHARES PRICED AT EIGHTEEN DOLLARS APIECE THROUGH UNDERWRITERS LED BY COWEN AND COMPANY AMERICAS INCOME TRUST INCORPORATED INITIAL PUBLIC OFFERING OF FIVE POINT EIGHT MILLION SHARES OFFERED AT FIFTEEN DOLLARS A SHARE THROUGH CO MANAGERS LED BY PIPER JAFFRAY INCORPORATED COLORADO SPRINGS COLORADO ONE HUNDRED SEVENTEEN POINT NINE MILLION DOLLAR UTILITIES SYSTEM IMPROVEMENT AND REFUNDING REVENUE BONDS APPARENTLY WON BY A PRUDENTIAL SECURITIES INCORPORATED GROUP WITH A BID SETTING THE TRUE INTEREST COST AT FIVE POINT TWO THREE PERCENT THE BONDS ARE RATED DOUBLE A BY BOTH MOODY'S AND S. AND P. AEGON N. V. NETHERLANDS TWO HUNDRED FIFTY MILLION DUTCH GUILDERS OF FIVE POINT ONE TWO FIVE PERCENT EUROBONDS DUE FEBRUARY TWENTY THIRD NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED POINT TWO FIVE VIA A. B. N. AMRO BANK N. V. REOFFERED AT NINETY NINE POINT FIVE TO YIELD FIVE POINT TWO FOUR PERCENT A MARGIN OF FIFTEEN BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE ASIA COMMERCIAL HOLDINGS LIMITED HONG KONG FIFTY EIGHT MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE ONE POINT SEVEN FIVE PERCENT NOTES DUE FEBRUARY TWENTY THIRD TWO THOUSAND AT PAR AND REDEEMABLE IN U. S. DOLLARS VIA BANQUE PARIBAS SUISSE NOTES ARE CONVERTIBLE FROM FEBRUARY TWENTY THIRD NINETEEN NINETY FIVE TO FEBRUARY EIGHTH TWO THOUSAND AT EXPECTED TWENTY PERCENT PREMIUM OVER CLOSING SHARE PRICE THURSDAY WHEN TERMS ARE TO BE FIXED FEES ONE POINT EIGHT SEVEN FIVE BANK OF ASIA PUBLIC COMPANY CAYMAN ISLANDS BRANCH THAI PARENT SEVENTY FIVE MILLION DOLLARS OF SUBORDINATED CONVERTIBLE EUROBONDS DUE FEBRUARY NINTH TWO THOUSAND FOUR AT ISSUE PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LIMITED INDICATED COUPON THREE POINT FIVE PERCENT TO FOUR PERCENT CONVERTIBLE INTO ORDINARY PARENT COMPANY SHARES AT INDICATED CONVERSION PREMIUM TEN PERCENT TO FIFTEEN PERCENT FROM MARCH NINTH TO JANUARY TWENTY SIXTH TWO THOUSAND FOUR YESTERDAY'S CLOSING SHARE PRICE WAS FIFTY NINE THAI BAHT TERMS TO BE FIXED THURSDAY AFTER FIVE YEARS BONDS FACE MANDATORY CONVERSION IF SHARE PRICE EXCEEDS ONE HUNDRED FORTY PERCENT OF CONVERSION PRICE GUARANTOR BANK OF ASIA PUBLIC COMPANY FEES TWO POINT FIVE DE NATIONALE INVESTERINGSBANK N. V. NETHERLANDS FIVE HUNDRED MILLION DUTCH GUILDERS OF FIVE POINT TWO FIVE PERCENT EUROBONDS DUE FEBRUARY SIXTEENTH TWO THOUSAND AT ISSUE PRICE ONE HUNDRED POINT ONE SEVEN VIA INTERNATIONALE NEDERLANDEN BANK N. V. REOFFERED AT NINETY NINE POINT FOUR TWO TO YIELD FIVE POINT THREE SIX SIX PERCENT A MARGIN OF TEN BASIS POINTS OVER COMPARABLE DUTCH STATE LOAN FEES ONE LKB BADEN WUERTTEMBERG FINANCE N. V. GERMAN PARENT SEVEN HUNDRED FIFTY MILLION MARKS OF SIX POINT FIVE PERCENT EUROBONDS DUE SEPTEMBER FIFTEENTH TWO THOUSAND EIGHT AT ISSUE PRICE ONE HUNDRED THREE POINT TWO VIA J. P. MORGAN GMBH REOFFERED AT ONE HUNDRED POINT SIX TO YIELD SIX POINT FOUR THREE PERCENT A MARGIN OF SIXTY SEVEN BASIS POINTS OVER SIX PERCENT GERMAN BUND OF SEPTEMBER TWO THOUSAND THREE BONDS TO TRADE INTERCHANGEABLY WITH ONE POINT FIVE BILLION MARKS OF IDENTICAL BONDS OUTSTANDING NEW ISSUE SIZE TWO POINT TWO FIVE BILLION MARKS GUARANTOR LANDESKREDITBANK BADEN WUERTTEMBERG FEES THREE ONTARIO CANADIAN PROVINCE ONE POINT TWO FIVE BILLION CANADIAN DOLLARS OF SEVEN POINT FIVE PERCENT GLOBAL BONDS DUE FEBRUARY SEVENTH TWO THOUSAND TWENTY FOUR AT ISSUE AND REOFFER PRICE NINETY EIGHT POINT FOUR TWO VIA GOLDMAN SACHS AND COMPANY NESBITT THOMSON LIMITED SCOTIA MCLEOD INCORPORATED AND DAIWA EUROPE LIMITED BONDS YIELD SEVEN POINT SIX THREE FIVE PERCENT A SPREAD OF FIFTY THREE BASIS POINTS OVER CANADIAN GOVERNMENT BOND OF TWO THOUSAND TWENTY THREE PAYABLE SEMIANNUALLY FEES ZERO POINT FOUR FIVE RHEINISCHE HYPOTHEKENBANK A. G. GERMANY ONE HUNDRED MILLION MARKS OF REVERSE COUPON FLOATING RATE NOTES DUE FEBRUARY TWENTY THIRD TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED TWO POINT THREE SEVEN FIVE VIA COMMERZBANK A. G. ANNUAL COUPON FIVE POINT SIX TWO FIVE PERCENT FIRST TWO YEARS SEMIANNUAL COUPON FLAT AT SIX MONTH MARK LONDON INTERBANK OFFERED RATE FOR YEARS THREE TO SEVEN ANNUAL COUPON SEVEN PERCENT LAST THREE YEARS FEES TWO POINT FIVE ROTHSCHILDS CONTINUATION FINANCE LIMITED BRITISH PARENT ONE HUNDRED TWENTY FIVE MILLION OF PERPETUAL NINE PERCENT EUROBONDS AT ISSUE AND REOFFER PRICE NINETY NINE POINT NINE EIGHT NINE VIA HOARE GOVETT SECURITIES LIMITED N. M. ROTHSCHILD AND SONS LIMITED AND SALOMON BROTHERS INTERNATIONAL LIMITED BONDS HAVE YIELD SPREAD OF TWO HUNDRED FORTY BASIS POINTS OVER BRITISH GILT OF TWO THOUSAND SEVENTEEN CALLABLE BETWEEN FEBRUARY FIFTEENTH TWO THOUSAND FOUR AND FEBRUARY FIFTEENTH TWO THOUSAND TWENTY FOUR AT HIGHER PRICE OF PAR OR FLAT AT YIELD OF THEN PREVAILING GILT THEREAFTER CALLABLE EVERY FIFTEEN YEARS AT PAR GUARANTOR ROTHSCHILDS CONTINUATION LIMITED FEES ZERO POINT SEVEN FIVE SHOUGANG GRAND CONCORD LIMITED HONG KONG ONE HUNDRED MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE ONE POINT FIVE PERCENT NOTES DUE DECEMBER THIRTY FIRST NINETEEN NINETY EIGHT AT PAR VIA YAMAICHI BANK SWITZERLAND LIMITED NOTES CONVERTIBLE FROM MARCH TWENTY FIRST TO NOVEMBER THIRTIETH NINETEEN NINETY EIGHT AT TEN PERCENT PREMIUM OVER FRIDAY'S CLOSING SHARE PRICE WHEN TERMS WERE FIXED FEES ONE POINT SIX TWO FIVE STANDARD CREDIT CARD MASTER TRUST ONE SERIES NINETEEN NINETY FOUR TO ONE SPECIAL PURPOSE VEHICLE SEVEN HUNDRED NINETY EIGHT MILLION DOLLARS OF GLOBAL CREDIT CARD PARTICIPATION CERTIFICATES OR BONDS LEGALLY DUE MARCH SEVENTH NINETEEN NINETY NINE VIA CITIBANK SECURED ON CREDIT CARD RECEIVABLES ORIGINATED FROM CITIBANK SOUTH DAKOTA N. A. AND CITIBANK NEVADA CLASS A TRANCHE IS SEVEN HUNDRED FIFTY MILLION DOLLARS OF FOUR POINT SIX FIVE PERCENT NOTES PRICED AT NINETY NINE POINT EIGHT FIVE EIGHT TO YIELD FOUR POINT SEVEN OH PERCENT A MARGIN OF THIRTY FIVE POINT FOUR BASIS POINTS OVER THREE YEAR U. S. TREASURY EXPECTED MATURITY FEBRUARY SEVENTH NINETEEN NINETY SEVEN FEES TWO POINT FIVE CLASS B. TRANCHE IS FORTY EIGHT MILLION DOLLARS OF FOUR POINT EIGHT FIVE PERCENT NOTES PRICED AT NINETY NINE POINT EIGHT SEVEN ONE TO YIELD FOUR POINT EIGHT NINE SIX PERCENT A MARGIN OF FIFTY FIVE BASIS POINTS OVER THREE YEAR TREASURY EXPECTED MATURITY MARCH SEVENTH NINETEEN NINETY SEVEN PAYABLE SEMIANNUALLY FEES THREE TREASURY CORPORATION OF VICTORIA AUSTRALIAN AGENCY TWO HUNDRED MILLION AUSTRALIAN DOLLARS OF SIX POINT SEVEN FIVE PERCENT EUROBONDS DUE FEBRUARY TWENTY EIGHTH TWO THOUSAND TWO AT ISSUE PRICE ONE HUNDRED ONE POINT ONE EIGHT VIA SWISS BANK CORPORATION REOFFERED AT NINETY NINE POINT SIX THREE TO YIELD SIX POINT EIGHT ONE PERCENT A MARGIN OF TWENTY EIGHT BASIS POINTS OVER INTERPOLATED AUSTRALIAN GOVERNMENT BOND YIELD CURVE OF NOVEMBER TWO THOUSAND ONE AND OCTOBER TWO THOUSAND TWO GUARANTOR STATE OF VICTORIA FEES ONE POINT EIGHT SEVEN FIVE UNION BANK OF FINLAND FINLAND ONE HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY TWENTY FOURTH NINETEEN NINETY SEVEN AT ISSUE AND FIXED REOFFER PRICE NINETY NINE POINT NINE FOUR FIVE VIA CHEMICAL INVESTMENT BANK LIMITED PAYABLE QUARTERLY AT ZERO POINT TWO FIVE POINT OVER THREE MONTH DOLLAR LIBOR FEES ZERO POINT ONE TWO FIVE MEDEX INCORPORATED HILLIARD OHIO SAID ITS MEDEX MEDICAL INCORPORATED UNIT SIGNED AN EXCLUSIVE PACKAGING AND DISTRIBUTION AGREEMENT WITH CORDIS EUROPA N. V. THE BRUSSELS BASED UNIT OF CORDIS CORPORATION MIAMI THE MAKER AND DISTRIBUTOR OF DISPOSABLE MEDICAL PRODUCTS FOR CRITICAL AND ACUTE CARE ESTIMATES THAT THE AGREEMENT WHICH BECAME EFFECTIVE JANUARY FIRST MAY RESULT IN SALES OF AS MUCH AS THIRTY MILLION DOLLARS OVER THE THREE YEAR TERM OF THE PACT MEDEX SAID THE AGREEMENT IS PART OF ITS STRATEGIC PLAN TO FORM ALLIANCES WITH OTHER LEADING MEDICAL PRODUCTS COMPANIES UNDER TERMS MEDEX MEDICAL WILL PROVIDE CUSTOM PROCEDURE KITS FOR CARDIOLOGICAL AND RADIOLOGICAL DIAGNOSTIC PROCEDURES WHICH CORDIS EUROPA WILL MARKET AND DISTRIBUTE IN EUROPE AFRICA AND THE MIDDLE EAST THE COMPANY SAID THE KITS WILL CONTAIN PRODUCTS MANUFACTURED BY MEDEX AND CORDIS AS WELL AS OTHER COMPANIES CORDIS EUROPA OPERATES PRODUCTION FACILITIES IN THE NETHERLANDS AND SOUTHERN FRANCE THAT MAKE ANGIOGRAPHIC AND NEUROSCIENCE PRODUCTS ITS PARENT IS A MANUFACTURER AND MARKETER OF MEDICAL DEVICES AILEEN INCORPORATED NEW YORK SAID IT FILED FOR CHAPTER ELEVEN BANKRUPTCY PROTECTION FROM CREDITORS AILEEN SAID IT DECIDED TO SEEK RELIEF AFTER FAILING TO REACH AN AGREEMENT TO EXTEND A CREDIT LINE WITH ITS EXISTING LENDER THE WOMEN'S APPAREL MANUFACTURER SAID EFFORTS TO SECURE FINANCING FROM OTHER LENDERS WERE SCUTTLED IN PART BY A DOWNTURN IN FALL AND WINTER SALES THE COMPANY OPERATES ONE HUNDRED FORTY FOUR MANUFACTURERS' OUTLET RETAIL STORES IN FORTY STATES THE BANKRUPTCY PETITION WHICH ALSO INCLUDES A SUBSIDIARY AILEEN STORES INCORPORATED WAS FILED IN THE U. S. BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AILEEN SAID STERLING NATIONAL BANK AND TRUST COMPANY NEW YORK AGREED TO PROVIDE FOUR POINT FIVE MILLION DOLLARS OF DEBTOR IN POSSESSION FINANCING FOR FISCAL NINETEEN NINETY THREE ENDED OCTOBER THIRTIETH ASSETS TOTALED ABOUT THIRTY NINE MILLION DOLLARS AND LIABILITIES FIFTEEN MILLION DOLLARS AILEEN SAID IT REPORTED A FULL YEAR NET LOSS OF FOUR MILLION SEVEN HUNDRED FIFTY ONE THOUSAND DOLLARS OR EIGHTY NINE CENTS A SHARE AGAINST NET INCOME OF ONE MILLION FOURTEEN THOUSAND DOLLARS OR NINETEEN CENTS A SHARE THE PREVIOUS YEAR MIRROR GROUP NEWSPAPERS P. L. C. SAID IT FORMED A CONSORTIUM TO BID FOR NEWSPAPER PUBLISHING P. L. C. THE COMPANY THAT OWNS THE INDEPENDENT AND INDEPENDENT ON SUNDAY TITLES IN A STATEMENT MIRROR GROUP IN LONDON SAID THE CONSORTIUM MADE UP OF ITSELF NEWSPAPER PUBLISHING MANAGEMENT AND EUROPEAN SHAREHOLDERS ALREADY OWNS ABOUT FORTY SEVEN PERCENT OF THE COMPANY THE CONSORTIUM WILL MAKE A BID FOR THE REMAINING FIFTY THREE PERCENT MIRROR GROUP DIDN'T DISCLOSE ANY OF THE DETAILS OF ITS BID A REPORT IN THE SUNDAY TIMES SAID THE BID COULD BE BETWEEN TWO HUNDRED FIFTY PENCE THREE DOLLARS AND SEVENTY THREE CENTS AND THREE HUNDRED PENCE A SHARE VALUING THE GROUP AT FIFTY FIVE MILLION POUNDS EIGHTY TWO MILLION DOLLARS TO SEVENTY MILLION POUNDS TIGER MANAGEMENT CORPORATION AND GENERAL ELECTRIC COMPANY'S G. E. INVESTMENTS AGREED TO MAKE A COMBINED TWO HUNDRED TWENTY FIVE MILLION DOLLAR INVESTMENT IN TIGER MANAGEMENT'S TIGER INTERNATIONAL FUND NEITHER COMPANY WAS MORE SPECIFIC ABOUT THEIR RESPECTIVE INVESTMENTS IN THE ONE BILLION DOLLAR FUND THAT TARGETS ASIA AND OTHER EMERGING MARKETS G. E. INVESTMENTS ALSO WILL JOIN THE FUND'S INVESTMENT COMMITTEE AND MAKE PERSONNEL AVAILABLE IN HONG KONG AND ELSEWHERE TO HELP IN EVALUATING POTENTIAL INVESTMENTS TIGER MANAGEMENT A GLOBAL INVESTMENT FIRM MANAGES ABOUT SEVEN POINT FIVE BILLION DOLLARS IN ASSETS G. E. INVESTMENTS MANAGES ABOUT FORTY SEVEN BILLION DOLLARS IN ASSETS INCLUDING MORE THAN TWENTY SIX BILLION DOLLARS FROM THE G. E. PENSION TRUST GERMAN METALS TRADING AND ENGINEERING CONCERN METALLGESELLSCHAFT A. G. SAID IT CAN'T YET QUANTIFY ITS LOSS FOR THE FIRST THREE MONTHS OF THE YEAR THAT BEGAN OCTOBER FIRST QUOTE THAT IT WILL BE CONSIDERABLE ISN'T A SURPRISE QUOTE BECAUSE OF TRANSACTIONS IN THE OIL FUTURES MARKET A SPOKESMAN SAID THE GERMAN SUNDAY NEWSPAPER WELT AM SONNTAG REPORTED THAT THE LOSS WOULD BE AROUND THAT OF A YEAR EARLIER AND COULD BE ABOUT FOUR HUNDRED MILLION MARKS TWO HUNDRED TWENTY EIGHT POINT THREE MILLION DOLLARS WELT AM SONNTAG QUOTED WIELAND SCHNEIDER WHO RUNS THE FINANCE DEPARTMENT JUST BELOW THE MANAGEMENT BOARD LEVEL AS DESCRIBING THE RESULTS AS DISASTROUS THIS THURSDAY THE COMPANY'S SUPERVISORY BOARD IS TO RECEIVE A REPORT ON FIRST QUARTER EARNINGS AND RESTRUCTURING EFFORTS FROM THE GROUP'S NEW CHAIRMAN KAJO NEUKIRCHEN MICHAEL G. MORAN FIFTY ONE YEAR OLD FORMER PROJECT MANAGER WITH B. H. P. IRON ORE IN PERTH AUSTRALIA WAS NAMED VICE PRESIDENT ENGINEERING SERVICES OF THIS GOLD MINING CONCERN WHICH IS NINETY POINT ONE PERCENT OWNED BY NEWMONT MINING CORPORATION MR. MORAN SUCCEEDS JOHN DAVENPORT WHO RETIRED LAST AUGUST GATEWAY CASINO COMPANY A PARTNERSHIP CONTROLLED BY CAESARS WORLD INCORPORATED LAS VEGAS AND CASINO MAGIC CORPORATION WAS NAMED THE PREFERRED DEVELOPER FOR A DOCKSIDE CASINO COMPLEX AT LACLEDE'S LANDING IN SAINT LOUIS THE TWO HUNDRED TEN MILLION DOLLAR COMPLEX CAESARS MAGIC CASINO WILL FEATURE A REPLICA RIVERBOAT CASINO HOTEL AND PARKING FACILITIES GATEWAY CASINO'S PROPOSAL OFFERED SAINT LOUIS NINE PERCENT OF GAMBLING REVENUES INITIALLY AND AS MUCH AS ELEVEN PERCENT OF FUTURE REVENUES PLUS A SHARE OF CASINO PROFITS THE SELECTION OF THE PARTNERSHIP WAS MADE BY A SAINT LOUIS CITY COMMITTEE CASINO MAGIC IS BASED IN BAY SAINT LOUIS MISSISSIPPI FEDERAL PAPER BOARD COMPANY CITING LOWER PRICES AND SALES IN ITS MARKET PULP BUSINESS SAID FOURTH QUARTER NET INCOME FELL FORTY SEVEN PERCENT EARNINGS FOR THE SIXTEEN WEEK PERIOD ENDED JANUARY FIRST WERE SEVEN POINT NINE MILLION DOLLARS OR FOURTEEN CENTS A SHARE COMPARED WITH FOURTEEN POINT NINE MILLION DOLLARS OR THIRTY ONE CENTS A SHARE FOR THE SEVENTEEN WEEK PERIOD A YEAR EARLIER SALES FELL NINE PERCENT TO FOUR HUNDRED THIRTEEN POINT SEVEN MILLION DOLLARS FROM FOUR HUNDRED FIFTY FOUR POINT SIX MILLION DOLLARS THE LATEST QUARTER INCLUDES A CHARGE OF THREE POINT FOUR MILLION DOLLARS RELATED TO MILL MODERNIZATION JOHN R. KENNEDY PRESIDENT SAID RESULTS WERE ABOUT AS EXPECTED CONSIDERING GENERAL ECONOMIC AND MARKET CONDITIONS FOR THE MONTVALE N. J. PAPER CONCERN'S MAJOR PRODUCTS FOR THE YEAR THE COMPANY SAID NET FELL SEVENTY SEVEN PERCENT TO TWENTY POINT EIGHT MILLION DOLLARS OR THIRTY FOUR CENTS A SHARE FROM NINETY ONE POINT SIX MILLION DOLLARS OR TWO DOLLARS AND FOUR CENTS CENTS A SHARE FOR THE FIFTY THREE WEEKS ENDED JANUARY SECOND NINETEEN NINETY THREE SALES FELL FIVE PERCENT TO ONE POINT THREE NINE BILLION DOLLARS FROM ONE POINT FOUR SIX BILLION DOLLARS SONY CORPORATION EXPECTS EARNINGS TO REMAIN WEAK IN THE NEXT FISCAL YEAR EXECUTIVE DEPUTY PRESIDENT KEN IWAKI SAID A RECOVERY IN EARNINGS IS QUOTE DEPENDENT ON THE JAPANESE ECONOMY AND GERMAN ECONOMY RECOVERING QUOTE MR. IWAKI SAID NEITHER COUNTRY HE SAID HAS SHOWN SIGNS OF HITTING THE BOTTOM EARNINGS AT THE MAJOR JAPANESE CONSUMER ELECTRONICS MANUFACTURER HAVE BEEN UNDER PRESSURE FOR THE LAST SEVERAL YEARS DUE TO SATURATION OF ITS MAIN MARKETS AND MORE RECENTLY BECAUSE OF THE HIGH YEN A HIGH YEN MAKES JAPANESE PRODUCTS MORE EXPENSIVE OVERSEAS AND REDUCES THE YEN BASED VALUE OF OVERSEAS SALES IN THE SIX MONTHS ENDED SEPTEMBER THIRTIETH NINETEEN NINETY THREE PRETAX PROFIT ROSE THIRTY FOUR PERCENT TO FIFTY SIX POINT SIX FIVE BILLION YEN FIVE HUNDRED SEVEN POINT EIGHT MILLION DOLLARS BUT THIRTY TWO POINT THREE FIVE BILLION YEN OF THAT AMOUNT WAS A RESULT OF SUCCESSFUL CURRENCY HEDGING SALES FOR THE SAME PERIOD DECLINED NINE POINT FIVE PERCENT ON THE YEAR TO ONE POINT SEVEN SIX SEVEN TRILLION YEN WHILE OPERATING PROFIT FOR THE PERIOD FELL FORTY FIVE PERCENT TO THIRTY SEVEN POINT FOUR NINE BILLION YEN CHICAGO MEDIA GIANT TRIBUNE COMPANY AGREED TO BUY THOMAS C. WRIGHT INCORPORATED A SMALL BUT FAST GROWING EDUCATIONAL PUBLISHER FOR ONE HUNDRED MILLION DOLLARS AS PART OF PLAN TO BECOME A MAJOR PLAYER IN THE EDUCATION AND TRAINING BUSINESS WRIGHT BASED IN BOTHELL WASHINGTON PRODUCES BOOKS AND OTHER EDUCATIONAL MATERIALS FOR CHILDREN OF GRADE SCHOOL AGE WRIGHT HAD NINETEEN NINETY THREE REVENUE OF JUST THIRTY FOUR MILLION DOLLARS BUT TRIBUNE IS BANKING ON THE SMALLER COMPANY TO CONTINUE ITS RAPID GROWTH WRIGHT HAS HAD REVENUE GROWTH OF ABOUT TWENTY TWO PERCENT IN EACH OF THE PAST THREE YEARS TRIBUNE SAID AND A SPOKESMAN SAID THAT GROWTH RATE IS EXPECTED TO CONTINUE FOR THE NEXT FIVE YEARS QUOTE THEY HAVE HIGH PROFIT MARGINS QUOTE A TRIBUNE SPOKESMAN SAID OF WRIGHT HE WOULDN'T BE MORE SPECIFIC ABOUT EARNINGS WRIGHT HAS EIGHTY FIVE EMPLOYEES GERMANY'S DRESDNER BANK A. G. SAID IT WILL CONSIDER COURT ACTION OVER SEARCHES OF ITS DUESSELDORF AND FRANKFURT OFFICES BY THE PROSECUTOR'S OFFICE AND TAX OFFICIALS ABOUT FORTY GOVERNMENT OFFICIALS HAVE BEEN SEARCHING OFFICES SINCE JANUARY ELEVENTH ALLEGING THAT EMPLOYEES HELPED TRANSFER ILLEGAL FUNDS TO LUXEMBOURG IN A NEWS RELEASE DRESDNER BANK DESCRIBED TRANSACTIONS IN QUESTION AS QUOTE IN COMPLETE ACCORD QUOTE WITH TAX LAWS SAYING SUCH TRANSACTIONS OCCUR THOUSANDS OF TIMES DAILY IN THE GERMAN BANKING SYSTEM THE BANK CLAIMED THE INVESTIGATION IS USING BANK EMPLOYEES AS A PRETEXT TO OBTAIN ILLEGAL ACCESS TO INFORMATION ON AN UNKNOWN NUMBER OF CUSTOMERS IT ALSO CRITICIZED THE TACTICS USED BY THE INVESTIGATORS SAYING FOR INSTANCE THAT EMPLOYEES WERE THREATENED WITH FORCE SEVERAL TIMES MICROELECTRONICS AND COMPUTER TECHNOLOGY CORPORATION AN AUSTIN TEXAS RESEARCH CONSORTIUM SAID IT RECEIVED A NINE POINT EIGHT MILLION DOLLAR FEDERAL CONTRACT TO HELP DEVELOP A NATIONAL COMPUTER NETWORK FOR U. S. MANUFACTURERS THE TWO YEAR CONTRACT FROM THE ADVANCED RESEARCH PROJECTS AGENCY AN ARM OF THE DEFENSE DEPARTMENT WILL ENABLE COMPANIES TO SWAP ON LINE INFORMATION WITH SUPPLIERS AND POTENTIAL CUSTOMERS M. C. C. AS THE RESEARCH GROUP IS KNOWN WILL PROVIDE SOFTWARE TO RUN THE NETWORK INCLUDING SECURITY FUNCTIONS A DIRECTORY OF SERVICES AND A MECHANISM THAT WILL ALLOW COMPANIES TO SET UP LINES OF CREDIT AND ON LINE BILLING THE M. C. C. WORK IS THE SECOND PHASE OF A GOVERNMENT PROJECT AIMED AT DEVELOPING NEW TECHNOLOGIES TO IMPROVE U. S. MANUFACTURING CARNEGIE MELLON UNIVERSITY AND THE UNIVERSITY OF UTAH ARE WORKING AS SUBCONTRACTORS TO M. C. C. ON THE EFFORT ROSS SYSTEMS INCORPORATED A MAKER OF COMPUTER CLIENT SERVER PRODUCTS REPORTED A LOSS OF SEVEN MILLION DOLLARS FOR ITS FISCAL SECOND QUARTER ON A TWENTY FIVE PERCENT DROP IN SALES ATTRIBUTABLE TO UNEXPECTED DELAYS IN OBTAINING EXPECTED SOFTWARE LICENSING CONTRACTS THE LOSS OF SEVENTY CENTS A SHARE FOR THE PERIOD ENDED DECEMBER THIRTY FIRST COMPARES WITH NET INCOME OF FIFTEEN CENTS A SHARE OR ONE POINT FIVE MILLION DOLLARS A YEAR EARLIER FOR THE REDWOOD CITY CALIFORNIA COMPANY THE CURRENT RESULTS INCLUDE CHARGES OF FIVE POINT NINE MILLION DOLLARS FOR RESTRUCTURING AND INCREASING A RESERVE TO OFFSET SLOWED ACCOUNT COLLECTIONS SALES DROPPED TO SEVENTEEN POINT TWO MILLION DOLLARS FROM TWENTY TWO POINT NINE MILLION DOLLARS A YEAR EARLIER THE LOSS WAS EXPECTED BECAUSE THE COMPANY PREVIOUSLY HAD ANNOUNCED THAT THE CONTRACT DELAYS WOULD HURT QUARTERLY RESULTS CALIFORNIA FEDERAL BANK REPORTED A WIDER LOSS FOR THE FOURTH QUARTER AS PROJECTED RESULTS THAT ANALYSTS SAID IMPROVE THE ODDS THAT THE THRIFT WILL BE SOLD THE LOSS OF FIFTY THREE POINT SEVEN MILLION DOLLARS OR TWO DOLLARS AND TWENTY TWO CENTS A SHARE COMPARES WITH A LOSS OF FORTY FIVE MILLION DOLLARS OR FIVE DOLLARS AND FORTY CENTS A SHARE A YEAR AGO WHEN ADJUSTED FOR A ONE FOR FIVE REVERSE STOCK SPLIT LAST YEAR FOR NINETEEN NINETY THREE THE LOS ANGELES THRIFT HAD A LOSS OF ONE HUNDRED FORTY FIVE POINT FIVE MILLION DOLLARS OR FIVE DOLLARS AND NINETY EIGHT CENTS A SHARE COMPARED WITH A LOSS OF NINETY SEVEN POINT THREE MILLION DOLLARS OR SIXTEEN DOLLARS AND FORTY CENTS A SHARE COUNTERING THE TREND AT MOST CALIFORNIA FINANCIAL INSTITUTIONS CALFED'S LOAN LOSS CHARGES MORE THAN DOUBLED TO FORTY SIX POINT TWO MILLION DOLLARS FROM TWENTY POINT EIGHT MILLION DOLLARS IN THE YEAR AGO PERIOD CALFED PRESIDENT AND CHIEF EXECUTIVE EDWARD HARSHFIELD WHO JOINED THE THRIFT IN SEPTEMBER IS PURSUING A QUOTE HOLD AND FIX QUOTE STRATEGY RECENTLY A PURCHASE OFFER BY GOLDEN WEST FINANCIAL CORPORATION OAKLAND CALIFORNIA WAS SPURNED BUT SOME LARGE SHAREHOLDERS SAY THEY MAY BRING PRESSURE ON THE BOARD TO CONSIDER SELLING THE COMPANY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CALFED CLOSED AT THIRTEEN POINT EIGHT SEVEN FIVE DOLLARS DOWN SIXTY TWO POINT FIVE CENTS BELLSOUTH CORPORATION OF ATLANTA SAID IT WILL JOIN TWO OTHER COMPANIES IN LAUNCHING A ONE HUNDRED SIXTY MILLION DOLLAR HIGH SPEED NETWORK TO TRANSMIT VOICE DATA AND VIDEO IMAGES IN NORTH CAROLINA LATER THIS YEAR BELLSOUTH SAID THE THREE YEAR PROJECT WHICH IS SCHEDULED TO BEGIN OPERATIONS IN AUGUST WILL CONNECT USERS TO INFORMATION FROM ONE HUNDRED SIX SITES IN NORTH CAROLINA BELLSOUTH SAID IT WILL INVEST SIXTY NINE MILLION DOLLARS IN THE PROJECT SPRINT SLASH CAROLINA TELEPHONE A UNIT OF SPRINT CORPORATION OF KANSAS CITY MISSOURI WILL CONTRIBUTE SIXTY MILLION DOLLARS AND G. T. E. CORPORATION OF STAMFORD CONNECTICUT WILL INVEST THIRTY MILLION DOLLARS A NORTH CAROLINA STATE SPOKESMAN SAID THE SYSTEM WILL USE ADVANCED FIBER OPTIC TRANSMISSION GEAR CALLED SYNCHRONOUS OPTICAL NETWORK A BELLSOUTH SPOKESMAN SAID THE SYSTEM WILL ALLOW A USER TO TRANSMIT A THIRTY THREE VOLUME ENCYLOPEDIA SET IN FOUR POINT SIX SECONDS COMPARED WITH THIRTEEN HOURS REQUIRED USING TECHNOLOGY AVAILABLE LAST YEAR BRINKER INTERNATIONAL INCORPORATED SAID IT AGREED TO ACQUIRE DALLAS BASED ON THE BORDER CAFES INCORPORATED FOR ABOUT THIRTY TWO POINT SEVEN MILLION DOLLARS IN BRINKER COMMON SHARES STEVEN FENSTERMACHER CHIEF EXECUTIVE OFFICER OF ON THE BORDER WILL CONTINUE TO DIRECT THE TEX MEX RESTAURANT CHAIN'S OPERATIONS AS A VICE PRESIDENT OF BRINKER ACCORDING TO DEBRA SMITHART BRINKER'S CHIEF FINANCIAL OFFICER SHE ADDED THAT BRINKER PLANS TO EXPAND THE TWENTY ONE UNIT CHAIN BRINKER OPERATES MORE THAN FOUR HUNDRED RESTAURANTS INCLUDING THE CHILI'S GRADY'S AMERICAN GRILL ROMANO'S MACARONI GRILL AND SPAGGEDDIES ITALIAN CHAINS BRINKER CLOSED YESTERDAY AT FORTY THREE POINT SIX TWO FIVE DOLLARS A SHARE DOWN TWELVE POINT FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ON THE BORDER CLOSED AT SEVEN DOLLARS AND TWENTY FIVE CENTS A SHARE UP FIFTY CENTS IN TRADING ON THE NASDAQ STOCK MARKET BRINKER SAID IT EXPECTS TO COMPLETE THE ACQUISITION IN MAY SUBJECT TO CERTAIN CONDITIONS AND TO THE APPROVAL OF ON THE BORDER SHAREHOLDERS UNISYS CORPORATION CITING WEAK COMPUTER SALES OVERSEAS PARTIALLY OFFSET BY GAINS IN THE U. S. SAID FOURTH QUARTER NET INCOME SLIPPED FIFTEEN PERCENT TO ONE HUNDRED SEVENTEEN POINT SEVEN MILLION DOLLARS OR FIFTY THREE CENTS A SHARE FROM ONE HUNDRED THIRTY NINE POINT TWO MILLION DOLLARS OR SIXTY SIX CENTS A SHARE THE YEAR AGO QUARTER INCLUDED A ONETIME GAIN OF THIRTY EIGHT MILLION DOLLARS OR TWENTY THREE CENTS A SHARE FROM AN OPERATING LOSS CARRY FORWARD REVENUE FOR THE QUARTER FELL SIX POINT NINE PERCENT TO TWO POINT ONE BILLION DOLLARS FROM TWO POINT TWO SIX BILLION DOLLARS BUT THE BLUE BELL PENNSYLVANIA COMPANY SAID ITS FOURTH QUARTER ORDERS SHOWED GOOD GROWTH INCLUDING THE STRONGEST GAINS IN ITS U. S. COMMERCIAL BUSINESS IN FIVE YEARS FOR THE YEAR UNISYS'S NET INCOME ROSE FIFTY SEVEN PERCENT TO FIVE HUNDRED SIXTY FIVE POINT FOUR MILLION DOLLARS OR TWO DOLLARS AND SIXTY NINE CENTS A SHARE FROM THREE HUNDRED SIXTY ONE POINT TWO MILLION DOLLARS OR ONE DOLLAR AND FORTY SIX CENTS A SHARE THE NINETEEN NINETY THREE RESULTS INCLUDED A GAIN OF TWO HUNDRED THIRTY POINT TWO MILLION DOLLARS OR ONE DOLLAR AND THIRTY NINE CENTS A SHARE FROM ACCOUNTING CHANGES AND A CHARGE OF TWENTY SIX POINT FOUR MILLION DOLLARS OR SIXTEEN CENTS A SHARE FROM A LEGAL SETTLEMENT THE NINETEEN NINETY TWO RESULTS INCLUDED A GAIN OF SIXTY FIVE MILLION DOLLARS OR FORTY CENTS A SHARE FROM AN OPERATING LOSS CARRY FORWARD REVENUE FOR THE YEAR SLID EIGHT PERCENT TO SEVEN POINT SEVEN FOUR BILLION DOLLARS FROM EIGHT POINT FOUR TWO BILLION DOLLARS UNISYS'S STOCK ROSE SEVENTY FIVE CENTS TO THIRTEEN POINT THREE SEVEN FIVE DOLLARS IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING AFTER HEAVY CUTS TO ITS DEBT BURDEN UNISYS SAID ITS NET DEBT TO CAPITAL RATIO IS ABOUT TWENTY NINE PERCENT DOWN FROM A NINETEEN NINETY ONE PEAK OF MORE THAN SIXTY PERCENT UNISYS SAID IT EXPECTS QUOTE SLIGHTLY HIGHER REVENUE QUOTE IN NINETEEN NINETY FOUR WITH MODEST IMPROVEMENTS IN ITS EUROPEAN AND JAPANESE MARKETS LATER IN THE YEAR NYNEX CORPORATION SAID IT WILL SLASH ITS WORK FORCE BY SIXTEEN THOUSAND EIGHT HUNDRED OR MORE THAN TWENTY PERCENT OVER THE NEXT THREE YEARS AND TAKE A ONE POINT SIX BILLION DOLLAR CHARGE RESULTING IN RECORD LOSSES FOR THE FOURTH QUARTER AND THE YEAR SEPARATELY BELLSOUTH CORPORATION REPORTED A LOSS OF TWO HUNDRED SEVENTY SIX MILLION DOLLARS FOR THE QUARTER REFLECTING ITS PREVIOUSLY ANNOUNCED PLANS TO CUT TEN THOUSAND TWO HUNDRED JOBS BY THE END OF NINETEEN NINETY SIX AND RESTRUCTURE CERTAIN OPERATIONS SOUTHWESTERN BELL CORPORATION MEANWHILE REPORTED RECORD EARNINGS FOR THE QUARTER NYNEX'S MOVE FOLLOWS THAT OF SEVERAL OTHER BABY BELL COMPANIES THAT ARE REDUCING THEIR WORK FORCES MAKING MASSIVE INVESTMENTS IN HIGH SPEED DATA AND VOICE NETWORKS AND GEARING UP TO FIGHT OFF AGGRESSIVE TELEPHONE SERVICE COMPETITORS FOR THE FOURTH QUARTER NYNEX REPORTED A LOSS OF ONE POINT TWO FOUR BILLION DOLLARS COMPARED WITH PROFIT OF THREE HUNDRED TWENTY FOUR POINT TWO MILLION DOLLARS A YEAR BEFORE WITHOUT THE HUGE CHARGE NYNEX WOULD HAVE STILL POSTED LOWER PROFIT OF TWO HUNDRED SIXTY FIVE POINT FIVE MILLION DOLLARS OR SIXTY FOUR CENTS A SHARE QUOTE WE DID A LITTLE WORSE IN THE QUARTER THAN WE EXPECTED QUOTE SAID IVAN SEIDENBERG VICE CHAIRMAN OF NYNEX NOT COUNTING THE CHARGE OPERATING EXPENSES ROSE FIVE POINT SIX PERCENT TO TWO POINT EIGHT FIVE BILLION DOLLARS FROM TWO POINT SEVEN OH BILLION DOLLARS REFLECTING STEEPER MARKETING COSTS AND ADDED EXPENSES DUE TO WINTER STORMS PREVIOUS REPORTS HAD SUGGESTED THAT NYNEX HAD BEEN WEIGHING PLANS TO CUT TWENTY TWO THOUSAND JOBS TO REDUCE ITS PAYROLL THE FATTEST AMONG REGIONAL PHONE COMPANIES AS IT BRACES FOR COMPETITION IN THE LUCRATIVE NEW YORK MARKET THE ONE POINT SIX BILLION DOLLAR CHARGE COMPRISES SEVEN HUNDRED MILLION DOLLARS FOR SEVERANCE ABOUT FOUR HUNDRED MILLION DOLLARS FOR RE ENGINEERING TO CONSOLIDATE OPERATIONS AND TRAIN WORKERS TWO HUNDRED SEVENTY MILLION DOLLARS TO REFLECT THE COMPANY'S EXIT FROM INFORMATION PRODUCTS AND SERVICES OPERATIONS AND TWO HUNDRED MILLION DOLLARS FOR ACCOUNTING CHANGES THIS IS A SIGNIFICANT STEP SAID WILLIAM C. FERGUSON CHAIRMAN AND CHIEF EXECUTIVE OF NYNEX THE COMPANY IS INTENT ON DRIVING COSTS DOWN IN AN INCREASINGLY COMPETITIVE MARKET AS PAINFUL AS THESE STEPS ARE WE HAVE TO DO THIS TO BE A VIABLE COMPANY GOING FORWARD NYNEX FACES ONE OF THE MOST FORMIDABLE ENVIRONMENTS AMONG REGIONAL PHONE COMPANIES A SLOWLY REVIVING NEW YORK NEW ENGLAND ECONOMY TOUGH REGULATORS AND SEVERAL UPSTART FIBER OPTIC PHONE SERVICE COMPETITORS BENT ON CAPTURING CHUNKS OF THE REGION'S COVETED BUSINESS MARKET OUR APPROACH IS THAT ALTHOUGH WE'LL LOSE MARKET SHARE TO NEW ENTRANTS WE'LL STILL BE GROWING OVERALL MR. FERGUSON SAID REVENUES ROSE TWO PERCENT TO THREE POINT THREE NINE BILLION DOLLARS FROM THREE POINT THREE TWO BILLION DOLLARS IN THE QUARTER NYNEX HAS BEEN CRITICIZED IN THE PAST FOR BEING SLOW TO RESPOND TO CHALLENGERS AND DOING LITTLE TO IMPROVE ITS PHONE SERVICE LIKE ITS BABY BELL SIBLINGS IT NOW HOPES TO BECOME MORE AGILE BY SLIMMING DOWN QUOTE THIS INITIATIVE HELPS US PUT SOME TEETH INTO OUR GOAL QUOTE OF IMPROVING PRODUCTIVITY BY ABOUT THIRTY PERCENT MR. SEIDENBERG SAID THE COMPANY EXPECTS TO REAP ENOUGH SAVINGS FROM ITS MOVES BY THE END OF NINETEEN NINETY SIX TO OFFSET THE ONE POINT SIX BILLION DOLLAR CHARGE IN ADDITION IT EXPECTS TO NOTCH UP PRETAX SAVINGS OF ABOUT ONE POINT SEVEN BILLION DOLLARS ANNUALLY THEREAFTER MR. SEIDENBERG ALSO REVEALED THAT NYNEX PLANS TO SPEND ONE HUNDRED FIFTY MILLION DOLLARS TO TWO HUNDRED MILLION DOLLARS TO INSTALL ONE POINT FIVE MILLION TO TWO MILLION BROADBAND LINES IN ITS REGION OVER THE NEXT TWO YEARS THESE LINES MOSTLY TO HOUSEHOLDS WOULD ALLOW THE COMPANY TO PROVIDE HIGH SPEED VOICE DATA AND VIDEO PROGRAMMING NYNEX PROVIDES PHONE SERVICE TO ABOUT TWELVE MILLION HOME CUSTOMERS THIS IS WHERE THE RELATIONSHIP WITH BLOCKBUSTER AND VIACOM COME IN MR. SEIDENBERG SAID LAST YEAR NYNEX INVESTED ONE POINT TWO BILLION DOLLARS IN VIACOM INCORPORATED AND BLOCKBUSTER ENTERTAINMENT CORPORATION RECENTLY AGREED TO BE ACQUIRED BY VIACOM A STRENGTHENING ECONOMY IN THE SOUTHEAST HELPED BOLSTER FOURTH QUARTER RESULTS FOR BELLSOUTH THE ATLANTA BASED COMPANY TOOK A ONE POINT ONE FOUR BILLION DOLLAR CHARGE TO TRIM ITS WORK FORCE AND FOR OTHER RESTRUCTURING COSTS IN ADDITION TO THE ONE DOLLAR AND FORTY CENT A SHARE RESTRUCTURING CHARGE THE QUARTER'S LOSS INCLUDED NINE CENTS A SHARE RELATED TO A FLORIDA RATE CASE SETTLEMENT AND FIVE CENTS A SHARE FOR DEBT REFINANCINGS BUT WITHOUT THE SPECIAL CHARGES BELLSOUTH SAID THE COMPANY WOULD HAVE REPORTED THE STRONGEST OPERATING QUARTER IN ITS TEN YEAR HISTORY BELLSOUTH'S ACCESS LINE GROWTH A GOOD BAROMETER FOR TELEPHONE COMPANY PERFORMANCE ROSE ONE HUNDRED SEVENTY NINE THOUSAND TWO HUNDRED IN THE FOURTH QUARTER THIRTY EIGHT PERCENT MORE THAN THE INCREASE OF ONE HUNDRED THIRTY THOUSAND ONE HUNDRED A YEAR EARLIER ACCESS LINES FOR THE YEAR GREW SIX HUNDRED EIGHTY FOUR THOUSAND SIX HUNDRED TO NINETEEN POINT FOUR MILLION BELLSOUTH'S U. S. CELLULAR BUSINESS ROSE THIRTY NINE PERCENT TO ABOUT ONE POINT SIX MILLION CUSTOMERS AT THE END OF NINETEEN NINETY THREE FROM NINETEEN NINETY TWO REVENUE ROSE SIX PERCENT TO FOUR POINT ONE THREE BILLION DOLLARS SEPARATELY SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORPORATION REPORTED A LOSS OF TWO HUNDRED TWENTY FOUR MILLION DOLLARS OR THREE DOLLARS AND FIFTY ONE CENTS A SHARE FOR THE FOURTH QUARTER INCLUDING A RESTRUCTURING CHARGE OF TWO HUNDRED FOUR MILLION DOLLARS OR THREE DOLLARS AND TWENTY ONE CENTS A SHARE FOR PREVIOUSLY ANNOUNCED JOB CUTS OF TWO THOUSAND FIVE HUNDRED EMPLOYEES OVER THE NEXT TWO YEARS THE REMAINDER OF THE CHARGE RELATES TO DISCONTINUED OPERATIONS AND DEBT REFINANCING NET INCOME A YEAR EARLIER WAS FORTY MILLION DOLLARS OR SIXTY FOUR CENTS A SHARE THE COMPANY BASED IN NEW HAVEN CONNECTICUT SAID THE WEAK REGIONAL ECONOMY AND INTENSIFYING COMPETITION CONTINUE TO PRESSURE EARNINGS REVENUE ROSE ABOUT FIVE PERCENT TO FOUR HUNDRED TWENTY SIX POINT FIVE MILLION DOLLARS FROM FOUR HUNDRED FIVE POINT NINE MILLION DOLLARS WHO'S NEWS JAMES PLATT SENIOR EDITOR OF FOX BROADCASTING COMPANY'S NEWS MAGAZINE SHOW FRONT PAGE WAS NAMED VICE PRESIDENT SPECIAL MEDIA PROJECTS FOR NEWS AMERICA NEW MEDIA IN NEW YORK MR. PLATT THIRTY SEVEN SUCCEEDS JAAN TORV WHO WAS RECENTLY NAMED SENIOR EXECUTIVE VICE PRESIDENT OF PROGRAMMING AND DEVELOPMENT FOR NEWS CORPORATION'S DELPHI INTERNET SERVICES SEPARATELY FOX BROADCASTING SAID KARD T. V. IN WEST MONROE LOUISIANA FORMERLY AN A. B. C. NETWORK AFFILIATE WILL MOVE TO THE FOX NETWORK ON APRIL SEVENTEENTH BRINGING FOX'S NUMBER OF AFFILIATES TO ONE HUNDRED FORTY TWO MEMBERS OF CONGRESS RETURN TODAY TO HEAR PRESIDENT CLINTON'S STATE OF THE UNION MESSAGE WE'RE GOING TO EXPLAIN WHY SO MANY OF THEM WILL LOOK COMFORTABLY SMUG TONIGHT THE PROFESSIONAL HOUSE ADMINISTRATOR WHO WAS HIRED TO SWEEP OUT THE RANCID PATRONAGE SYSTEM THAT LED TO THE HOUSE BANK AND POST OFFICE SCANDALS HAS JUST QUIT HE SAYS HE WASN'T ALLOWED TO DO HIS JOB HOUSE QUOTE REFORM QUOTE EFFORTS APPEAR MORE AND MORE TO BE A SHAM RETIRED LIEUTENANT GENERAL LEONARD WISHART WAS HIRED TO RUN THE HOUSE'S INTERNAL OPERATIONS IN LATE NINETEEN NINETY TWO AFTER AN EXHAUSTIVE YEAR LONG SEARCH BY A HEAD HUNTING FIRM A VETERAN OF THIRTY FOUR YEARS IN THE ARMY HE HAD HELD A VARIETY OF TOP MANAGEMENT POSITIONS HOWEVER WITHIN WEEKS HE LEARNED THAT THE HOUSE'S PETTY FIEFDOMS MAKE THOSE OF THE PENTAGON LOOK LIKE A MODEL OF COOPERATIVE SIMPLICITY ONE OF MR. WISHART'S MAIN GOALS WAS TO GET THE POLITICS OUT OF SUCH SCANDAL RIDDEN ENTITIES AS THE HOUSE POST OFFICE AND PAYROLL OFFICES THE LAST HOUSE ADMINISTRATOR WAS CONVICTED OF FRAUD INVOLVING THE HOUSE BANK WHICH WAS FINALLY CLOSED BUT MR. WISHART COULDN'T IMPLEMENT ANY FURTHER REFORMS UNLESS A HOUSE OVERSIGHT COMMITTEE FIRST APPROVED THEM BY A UNANIMOUS VOTE THAT HIGH HURDLE ALLOWED CONGRESS'S BARONS TO CONTINUE PATRONAGE AS USUAL REPRESENTATIVE CHARLES ROSE CHAIRMAN OF THE HOUSE ADMINISTRATION COMMITTEE SIMPLY DECLINED TO SURRENDER CONTROL OVER THE HOUSE'S INFORMATION SYSTEMS EVEN THOUGH MEMBERS HAD VOTED IN NINETEEN NINETY TWO TO GIVE RESPONSIBILITY FOR THEM TO GENERAL WISHART REPRESENTATIVE ROSE A KEY DESIGNER OF THE HOUSE'S INCUMBENT PROTECTION MACHINE SUCCESSFULLY RESISTED HE INSISTED THAT SINCE THE TRANSFER OF THE INFORMATION SYSTEMS HAD BEEN MADE BY THE LAST CONGRESS THAT DECISION WASN'T BINDING ON THIS CONGRESS AND MEMBERS SHOULD KEEP DIRECT CONTROL OF ALL COMPUTER AND DATA SYSTEMS GENERAL WISHART WAS POWERLESS TO STOP HIM INDEED HE WAS CONSTANTLY REMINDED THAT MEMBERS OF CONGRESS ARE INTERESTED IN THE APPEARANCE OF REFORM BUT NOT THE REALITY LAST OCTOBER HE LEARNED THAT TWO HOUSE EMPLOYEES HAD BEEN GIVEN BONUSES WITHOUT HIS KNOWLEDGE THE LAST STRAW MAY HAVE COME IN NOVEMBER WHEN THE OVERSIGHT COMMITTEE HE REPORTED TO DEADLOCKED TWO TO TWO ON APPROVING HIS NEW PERSONNEL POLICY REPRESENTATIVE ROSE AND REPRESENTATIVE BILL CLAY CHAIRMAN OF THE HOUSE'S CIVIL SERVICE COMMITTEE CAST THE TWO NO VOTES ON JANUARY TENTH MR. WISHART WROTE SPEAKER FOLEY TO ANNOUNCE HE WOULD BE CLEARING OUT HIS DESK WITHIN TWO WEEKS A MILITARY MAN TO THE END HE HAS REFUSED MEDIA INTERVIEWS BUT HIS LETTER MAKES CLEAR HIS FRUSTRATION WITH THOSE WHO BLOCKED HIS REFORMS UNFORTUNATELY I BELIEVE OTHERS HAVE DIFFERENT AGENDAS AND MY USEFULNESS TO YOU IS AT AN END HE WROTE SPEAKER FOLEY HE NOTED THAT THE SITUATION IS NOT LIKELY TO CHANGE IT APPEARS THAT SOME INDIVIDUALS HAVE BEGUN TO MAKE ME THE ISSUE THUS UNDERMINING THE CREDIBILITY OF THE OFFICE BUT EVEN HIS STUNNING RESIGNATION WASN'T ENOUGH TO SHAME HOUSE LEADERS INTO FOLLOWING MR. WISHART'S ADVICE IN HIS LETTER HE RECOMMENDED A FORMER U. S. POSTAL SERVICE EXECUTIVE BE NAMED AS HIS REPLACEMENT HOUSE LEADERS IGNORED THIS SUGGESTION AND INSTEAD NAMED MR. WISHART'S DEPUTY WHO IS UNLIKELY TO HAVE ANY MORE LUCK BUCKING THE HOUSE'S LEGISLATIVE CAESARS THAN HE DID THOSE POTENTATES ARE EVEN NOW PLOTTING TO SUBVERT ONE OF THE FEW REFORMS THAT'S BEEN PROPOSED BY A JOINT COMMITTEE ON THE OPERATION OF CONGRESS IT WANTS TO CUT DOWN ON THE HOUSE'S BEWILDERING ARRAY OF ONE HUNDRED FIFTY COMMITTEES AND SUBCOMMITTEES MANY WITH OVERLAPPING JURISDICTIONS ITS SUGGESTION CLOSE NINETEEN SUBCOMMITTEES AND LIMIT MEMBERS TO SIX COMMITTEE ASSIGNMENTS BUT THE CONGRESSIONAL BLACK CAUCUS OPPOSES ANY CHANGES BECAUSE THAT MIGHT MEAN FEWER CHAIRMANSHIPS FOR ITS MEMBERS AMONG THE PROBLEMS I THINK THE HOUSE HAS TOO MANY COMMITTEES IS NOT ONE OF THEM SAYS ELEANOR HOLMES NORTON THE DISTRICT OF COLUMBIA'S DELEGATE JOSEPH CALIFANO WHO SERVED AS A TOP AIDE TO LYNDON JOHNSON AND IN JIMMY CARTER'S CABINET DISAGREES MANY MEMBERS ARE MORE LOYAL TO THE INTERESTS BEHIND THEIR COMMITTEES THAN TO THEIR CONSTITUENTS HE TOLD CSPAN TO COMBAT THIS MR. CALIFANO WANTS PRESIDENTS TO HAVE A LINE ITEM VETO LAST YEAR THE PUBLIC HAD HIGH HOPES THAT THE ONE HUNDRED TWELVE HOUSE FRESHMEN REPRESENTING ONE FOURTH OF ALL MEMBERS WOULD SHAKE UP THE PLACE INSTEAD MOST HAVE BECOME HOUSE BROKEN AND SETTLED FOR TABLE SCRAPS DANGLED OVER THEIR HEADS BY THE LEADERSHIP GENERAL WISHART'S RESIGNATION IS THE LATEST EVIDENCE THAT CHANGE WILL COME ONLY IF VOTERS CONDUCT A THOROUGH HOUSE CLEANING AT THE POLLS OR IMPOSE TERM LIMITS THAT RESTRICT THE ABILITY OF HOUSE LEADERS TO PERPETUATE THEIR DYNASTIC RULE AMERICANS WHO WERE USED AS GUINEA PIGS IN COLD WAR RADIATION EXPERIMENTS MAY FIND IT EASIER TO WIN SYMPATHY THAN LEGAL DAMAGES CONSIDER THE CASE OF THE LATE ELMER ALLEN A RAILWORKER WHO WAS INJURED FALLING OFF A TRAIN IN NINETEEN FORTY SIX AND WHOSE LEG WAS INJECTED WITH PLUTONIUM IN AN ALLEGED GOVERNMENT SPONSORED EXPERIMENT THE FOLLOWING YEAR ULTIMATELY THE LEG WAS AMPUTATED AND MR. ALLEN DEVELOPED A VARIETY OF PROBLEMS DESCRIBED MOVINGLY BY HIS DAUGHTER ELMERINE WHITFIELD AT A CONGRESSIONAL HEARING LAST WEEK HIS AILMENTS INCLUDED EPILEPTIC TYPE SEIZURES AND QUOTE ALCOHOLIC BINGES AND IRRATIONAL BABBLINGS QUOTE MS. WHITFIELD TOLD THE HOUSE SUBCOMMITTEE ON ENERGY AND POWER HORRIFIC AS MR. ALLEN'S STORY SOUNDS IT MAY NOT PLAY IN COURT BECAUSE MR. ALLEN LIKE MANY OF THE RADIATION VICTIMS IS DEAD AND BECAUSE HIS AILMENTS ARE FAIRLY COMMON IT'S DIFFICULT TO SAY WHAT CAUSED HIS CONDITION SAYS ARVIN MASKIN A NEW YORK DEFENSE LAWYER WHO FORMERLY REPRESENTED THE JUSTICE DEPARTMENT IN LITIGATION OVER THE DEFOLIANT AGENT ORANGE IN ADDITION FEDERAL LAW PROHIBITS JURY TRIALS IN CASES AGAINST THE U. S. GOVERNMENT AND JURIES ARE MUCH MORE LIKELY TO DISTRUST STATE OFFICIALS THAN ARE JUDGES SAYS ROBERT HAGER A PLAINTIFFS' LAWYER WHO REPRESENTS VIETNAM VETERANS WHO ARE CHALLENGING THE OUTCOME OF THE AGENT ORANGE CASE ENERGY SECRETARY HAZEL O'LEARY AND OTHER ADMINISTRATION OFFICIALS HAVE ACKNOWLEDGED THE GOVERNMENT'S ROLE IN THE PLUTONIUM EXPERIMENTS AND PLEDGED TO RELEASE ADDITIONAL DATA ABOUT THEM BUT THAT DOESN'T MEAN THE GOVERNMENT WILL BE COMPELLED TO COMPENSATE PARTICIPANTS IN THE EXPERIMENTS THE COURTS HAVE GIVEN THE FEDERAL GOVERNMENT EXTREMELY BROAD PROTECTION FROM PERSONAL INJURY LAWSUITS ESPECIALLY IN CASES INVOLVING EVENTS THAT OCCURRED MANY YEARS AGO IN ADDITION SCIENTISTS DIFFER WIDELY ABOUT THE HEALTH CONSEQUENCES OF RADIATION EXPOSURE SO EVEN IF PARTICIPANTS SOME OF WHOM HAVE ALREADY SUED SUCCEED IN BRINGING THE GOVERNMENT TO COURT IT WILL BE VERY HARD TO PROVE THAT PARTICULAR ILLNESSES OR INJURIES ARE LINKED TO THE TESTS EVEN THOUGH MORALLY PEOPLE FIND THIS OFFENSIVE THE FACT OF THE MATTER IS THAT'S NOT THE YARDSTICK BY WHICH THE UNITED STATES'S CONDUCT IS JUDGED IN COURT SAYS MR. MASKIN THE PRACTICAL EFFECT MAY BE THAT THE UNITED STATES IS ESSENTIALLY IMMUNE DESPITE THE ODDS HUNDREDS OF VICTIMS AND FAMILIES OF VICTIMS SUCH AS MR. ALLEN ARE EXPECTED TO SUE THE GOVERNMENT ALREADY SAN FRANCISCO PLAINTIFFS' LAWYER MELVIN BELLI HAS FILED A CLAIM SEEKING TEN MILLION DOLLARS ON BEHALF OF RICHARD REECE A MENTALLY DISABLED MAN WHO SAYS HE WAS INVOLUNTARILY INJECTED WITH RADIOACTIVE MATERIAL AT A CALIFORNIA HOSPITAL IN THE NINETEEN FORTIES MR. BELLI SAYS HE HAS RECEIVED HUNDREDS OF SOLICITATIONS FROM OTHER ALLEGED VICTIMS AND IS PREPARING A CLASS ACTION LAWSUIT SOME OF THEM SOUND LIKE NUTS MR. BELLI SAYS THEY ARE AND THAT'S THE BIG THING SOME OF THEM WERE MADE CRAZY BY THIS RADIATION QUOTE CONGRESS OF COURSE COULD DECIDE ON ITS OWN TO COMPENSATE VICTIMS AND MS. O'LEARY HAS SUGGESTED SUCH ACTION MIGHT BE WARRANTED BUT ADMINISTRATION OFFICIALS HAVE BEEN VAGUE ABOUT WHETHER AND HOW PARTICIPANTS IN THE TESTS WOULD BE COMPENSATED AND SIMILAR FEDERAL PROGRAMS FOR OTHER VICTIMS OF NUCLEAR TESTING SUCH AS THE NINETEEN FIFTIES RESIDENTS OF THE MARSHALL ISLANDS HAVE BEEN CRITICIZED FOR MOVING TOO SLOWLY OR OFFERING TOO LITTLE MONEY EVEN IF THE GOVERNMENT IMPLEMENTS SUCH A PROGRAM LAWSUITS OVER WHICH PARTICIPANTS DESERVE COMPENSATION ARE CERTAIN TO PROLIFERATE THE ADMINISTRATION FOR INSTANCE HAS ALREADY SAID THAT ITS NEW TASK FORCE ON THE EXPERIMENTS WILL ONLY ADDRESS INTENTIONAL OR DELIBERATE EXPOSURES OF INDIVIDUALS TO THE RADIATION THE STUDY GROUP WON'T DEAL WITH INDIVIDUALS WHO LIVED NEAR NUCLEAR TEST AREAS AND MAY NOT INCLUDE VETERANS WHO WERE EXPOSED IN THE COURSE OF DUTY MANY VICTIMS WHO DO SUE THE GOVERNMENT WILL HAVE A DIFFICULT TIME EVEN GETTING THEIR CASE HEARD A FEDERAL STATUTE ALLOWS THE GOVERNMENT TO BE SUED OVER PETTY NEGLIGENCE SUCH AS WHEN PEOPLE SLIP AND FALL IN A POST OFFICE BUT THE GOVERNMENT IS LEGALLY IMMUNE FROM MOST ACCIDENTS AND INJURIES THAT RESULT FROM HIGH LEVEL POLICY DECISIONS IN NINETEEN EIGHTY SEVEN FOR EXAMPLE A FEDERAL APPEALS COURT THREW OUT A LOWER COURT'S DECISION THAT THE GOVERNMENT WAS LIABLE FOR THE INJURIES OF FOURTEEN PEOPLE WHO LIVED NEAR ATOMIC BOMB TESTS CONDUCTED IN NEVADA IN THE NINETEEN FIFTIES AND NINETEEN SIXTIES JUDGES SHOULDN'T SECOND GUESS' THE POLITICAL SOCIAL AND ECONOMIC JUDGMENTS OF AN AGENCY THE APPEALS COURT RULED HOWEVER ERRONEOUS OR MISGUIDED THESE DELIBERATIONS MAY SEEM TODAY IT IS NOT THE PLACE OF THE JUDICIAL BRANCH TO QUESTION THEM NOW THE GOVERNMENT ALSO HAS SUCCESSFULLY DEFENDED SIMILAR LAWSUITS ON THE GROUND THAT THE VICTIMS WAITED TOO LONG AFTER THE INJURY OCCURRED TO FILE THEIR SUITS AND IT HAS INVOKED THE SO CALLED FERES DOCTRINE CREATED BY THE SUPREME COURT IN NINETEEN FIFTY WHICH PROTECTS THE GOVERNMENT FROM SUITS BY SOLDIERS INJURED IN THE LINE OF DUTY THE DOCTRINE IS DESIGNED TO PREVENT DISPUTES SUCH AS SUING YOUR SERGEANT FOR NEGLIGENCE FOR TELLING YOU TO TAKE ONE HILL RATHER THAN ANOTHER HILL SAYS MR. MASKIN THE DEFENSE LAWYER STILL SOME LAWYERS SAY THERE WILL BE HEAVY PRESSURE ON THE GOVERNMENT TO SETTLE SOME CASES THAT'S BECAUSE DESPITE THE GOVERNMENT'S APPARENTLY STRONG LEGAL POSITION OFFICIALS MUST DEAL WITH THE COURT OF PUBLIC OPINION THEY'RE GOING TO CLAIM IMMUNITY SAYS STANLEY CHESLEY WHO REPRESENTS PLAINTIFFS IN SEVERAL RADIATION CASES BUT HE SAYS QUOTE AN ENLIGHTENED PUBLIC AND ENLIGHTENED COURTS AREN'T GOING TO PUT UP WITH THOSE DEFENSES QUOTE NEW YORK STATE HAS AGREED TO PAY DELAWARE TWO HUNDRED MILLION DOLLARS TO SETTLE A DISPUTE OVER UNCLAIMED DIVIDENDS AND INTEREST HELD BY NEW YORK BROKERAGE FIRMS THE SETTLEMENT A FOLLOW UP TO A U. S. SUPREME COURT DECISION LAST MARCH WILL BE PAID OVER FIVE YEARS THE STATES ANNOUNCED DELAWARE AT ONE TIME ESTIMATED THAT IT WAS OWED EIGHT HUNDRED NINETY ONE MILLION DOLLARS NEW YORK OFFICIALS HAD SAID THE TAB WOULD BE THREE HUNDRED MILLION DOLLARS TO THREE HUNDRED FIFTY MILLION DOLLARS AFTER THE HIGH COURT RULED LAST MARCH THAT DELAWARE HAS THE RIGHT TO COLLECT TWO DECADES' WORTH OF THESE DIVIDENDS AND INTEREST WHEN THE BROKERAGE HOUSES HOLDING THE ASSETS ARE INCORPORATED IN DELAWARE THE SETTLEMENT WON'T NECESSARILY END THE FIGHT AS MOST OTHER STATES ARE INVOLVED AS WELL OTHER STATES THAT INTERVENED IN THE CASE CONTENDED THAT UNCLAIMED ASSETS TOTALING ONE BILLION DOLLARS SHOULD BE SPREAD MORE BROADLY AND LEGISLATION PENDING IN CONGRESS WOULD NEGATE DELAWARE'S HIGH COURT VICTORY AND DIVIDE THE DISPUTED ASSETS MORE EVENLY THE SUPREME COURT CASE INVOLVED DIVIDENDS AND INTEREST COLLECTED BY NEW YORK SINCE NINETEEN SEVENTY TWO FROM BROKERAGE AND BANK ACCOUNTS WHOSE OWNERS COULDN'T BE LOCATED NEW YORK TOOK THE MONEY ON THE THEORY THAT IT COULD ASSUME OWNERSHIP OF PROPERTY ABANDONED WITHIN THE STATE DELAWARE WHICH SUED NEW YORK IN NINETEEN EIGHTY EIGHT CONTENDED THAT THE STATE IN WHICH BROKERAGE FIRMS ARE INCORPORATED OUGHT TO BE THE ONE THAT COLLECTS THE ABANDONED ASSETS MANY MAJOR BROKERAGE FIRMS ARE INCORPORATED IN DELAWARE BECAUSE OF THE STATE'S FAVORABLE CORPORATE LAWS AND WELL REGARDED COURT SYSTEM IN ITS RULING IN MARCH THE SUPREME COURT ESSENTIALLY AGREED WITH DELAWARE'S POSITION IN CONNECTION WITH THE SETTLEMENT DELAWARE HAS FILED A MOTION ASKING THE SUPREME COURT TO DISMISS ITS PENDING CLAIMS AGAINST NEW YORK CALIFORNIA STOCKBROKER RAFI KHAN SUED THE NEW YORK TIMES FOR ALLEGEDLY LIBELING HIM IN THREE ARTICLES THE COMPLAINT IN STATE COURT IN MINEOLA N. Y. WHICH ALSO NAMES REPORTER SUSAN ANTILLA AND EDITOR SALLIE HOFMEISTER ALLEGES THAT THE PAPER FALSELY STATED THAT MR. KHAN WAS FINED IN CANADA IN NINETEEN SEVENTY SIX FOR SECURITIES FRAUD AND WAS RECENTLY SUED BY THE U. S. SECURITIES AND EXCHANGE COMMISSION IN ADDITION MR. KHAN CLAIMS IN HIS SUIT THAT MS. ANTILLA FALSELY WROTE IN AN ARTICLE APPEARING IN THE ORANGE COUNTY REGISTER THAT MR. KHAN DID IMPROPER FAVORS FOR CLIENTS THE REGISTER WASN'T NAMED IN THE SUIT WHICH SEEKS TWO HUNDRED TEN MILLION DOLLARS IN DAMAGES THE ARTICLES RAN BETWEEN OCTOBER NINETEEN NINETY THREE AND JANUARY THIRTEENTH THE TIMES PUBLISHED CORRECTIONS ON OCTOBER TWENTY FIFTH AND JANUARY FOURTEENTH STATING THAT MR. KHAN WAS NEVER FINED IN CANADA FOR STOCK FRAUD AND THAT HE WASN'T SUED BY THE S. E. C. BERNARD L. BURTON A MELVILLE N. Y. ATTORNEY FOR MR. KHAN SAID HIS CLIENT FEARS THAT THE ARTICLES DAMAGED HIS CHANCES OF WINNING AN ONGOING PROXY FIGHT TO OUST MANAGEMENT OF I. C. N. PHARMACEUTICALS INCORPORATED COSTA MESA CALIFORNIA THE SHAREHOLDER VOTES WILL BE ANNOUNCED AT I. C. N.'S ANNUAL MEETING FEBRUARY FIRST A FEDERAL COURT IN NEW YORK LAST MONTH ALLOWED I. C. N. TO BLOCK MR. KHAN'S PLAN TO UNSEAT THE COMPANY'S CURRENT MANAGEMENT THROUGH A CONSENT SOLICITATION WHICH REQUIRES APPROVAL BY HOLDERS OF A MAJORITY OF I. C. N.'S TOTAL SHARES OUTSTANDING JUDGE JOHN SPRIZZO IN AN ORAL RULING HIGHLY CRITICAL OF MR. KHAN SAID HE PROBABLY WILL ASK U. S. AUTHORITIES TO INVESTIGATE MR. KHAN'S INVOLVEMENT IN A NINETEEN EIGHTY SIX BRITISH GAS P. L. C. SECURITIES SCHEME MR. KHAN HAS DENIED ANY WRONGDOING THE TIMES PUBLISHED BY THE NEW YORK TIMES COMPANY NEW YORK AND MS. HOFMEISTER HAD NO COMMENT ON THE LIBEL SUIT MS. ANTILLA DIDN'T RETURN A PHONE CALL SEEKING COMMENT RAFI M. KHAN VERSUS NEW YORK TIMES COMPANY N. Y. SUPREME COURT COUNTY OF NASSAU NINETY FOUR TO OH OH ONE NINE OH FOUR PAUL M. BARRETT IN WASHINGTON AND JUNDA WOO IN NEW YORK CONTRIBUTED TO THIS ARTICLE CONFLICTING SIGNALS ABOUT THE DIRECTION OF THE MARK AND YEN LEFT THE DOLLAR DITHERING YESTERDAY STERLING THOUGH ADVANCED BRIEFLY ON ENCOURAGING U. K. BUSINESS CONFIDENCE DATA LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FIVE OH EIGHT MARKS DOWN FROM ONE POINT SEVEN FIVE FOUR OH MARKS LATE MONDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED ELEVEN POINT SEVEN OH YEN UP A BIT FROM ONE HUNDRED ELEVEN POINT SIX OH YEN STERLING WAS TRADING AT ONE POINT FOUR NINE FOUR SIX DOLLARS UP FROM ONE POINT FOUR NINE TWO OH DOLLARS ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED ELEVEN POINT SIX SIX YEN AND AT ONE POINT SEVEN FIVE ONE EIGHT MARKS A FOUR POINT NINE PERCENT PLUNGE BY THE NIKKEI STOCK AVERAGE THE JAPANESE MARKET'S WORST DAY IN MORE THAN TWO YEARS BOOSTED THE DOLLAR IN ASIAN TRADING AS INTERNATIONAL PLAYERS LIQUIDATED YEN HOLDINGS BUT THE GAINS DISSIPATED LATER IN THE DAY AS PLAYERS DECIDED THAT THE SAME JAPANESE POLITICAL PROBLEMS THAT SPARKED THE STOCK MARKET DROP MAY ACTUALLY SUPPORT THE YEN IF THE JAPANESE GOVERNMENT IS TOO FRAGILE TO PASS ECONOMIC REFORM LEGISLATION THEY SAID U. S. OFFICIALS MIGHT BEGIN CALLING FOR A STRONG YEN AS A MEANS TO CUT JAPAN'S TRADE SURPLUS FURTHERMORE IF THE NIKKEI'S WEAKNESS CONTINUES THE EFFECT OF FOREIGNERS SELLING OFF YEN HOLDINGS MAY BE COUNTERED BY JAPANESE COVERING LOSSES BY REPATRIATING CAPITAL FROM OVERSEAS AND BUYING YEN IN THE PROCESS QUOTE IN A SENSE IT'S A PURE WASH QUOTE SAID ANN B. FINALY AN ASSISTANT VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN BARRING ANY SPECTACULAR DEVELOPMENTS THE DOLLAR SHOULD TRADE SIDEWAYS THIS WEEK SHE SAID WITH A BIAS TOWARD A STRONGER DOLLAR REMAINING STRONG U. S. ECONOMIC FUNDAMENTALS ARE SUPPORTING THE DOLLAR TRADERS SAID WITH DATA DUE THIS WEEK ON DECEMBER DURABLE GOODS AND FOURTH QUARTER GROSS DOMESTIC PRODUCT EXPECTED TO REINFORCE PERCEPTIONS OF A MUSCULAR U. S. RECOVERY JAPAN'S ECONOMY MEANWHILE IS SINKING DEEPER INTO RECESSION AND FIGURES ON TRADE HOUSEHOLD SPENDING AND RETAIL SALES ARE EXPECTED TO CONFIRM THAT BUT THE WEAKNESS OF THE HOSOKAWA GOVERNMENT AND THE SLIM LIKELIHOOD THAT IT WILL BE ABLE TO PUSH MEANINGFUL POLITICAL OR ECONOMIC REFORMS THROUGH PARLIAMENT HAS RAISED THE SPECTER OF RENEWED U. S. INTERFERENCE IN THE FOREIGN EXCHANGE MARKET U. S. TREASURY SECRETARY LLOYD BENTSEN ON A VISIT TO TOKYO SUNDAY MADE IT CLEAR THAT THE U. S. STILL EXPECTS PROGRESS ON OPENING THE JAPANESE AUTOMOBILE INSURANCE AND GOVERNMENT PROCUREMENT MARKETS DESPITE THE RECENT POLITICAL UPHEAVALS IN JAPAN IF NO PROGRESS IS MADE THE U. S. WILL HAVE TO RE EXAMINE THE TRADE TALKS FRAMEWORK MR. BENTSEN SAID A LOT OF PEOPLE ARE NERVOUS THAT MR. BENTSEN IS GOING TO COME OUT AND CALL FOR A STRONGER YEN SAID MS. FINALY THE OUTLOOK FOR THE MARK WAS ALSO MUDDLED MONDAY INFLATION FIGURES FROM THE GERMAN STATE OF NORTH RHINE WESTPHALIA WERE LOWER THAN MARKET EXPECTATIONS YET BUNDESBANK DIRECTORATE MEMBER EGON MEISTER WAS QUOTED MONDAY AS SAYING THAT FORCED EASING WOULD BE COUNTERPRODUCTIVE FOR THE GERMAN ECONOMY AND SUGGESTING THAT THE BUNDESBANK IS CONCERNED ABOUT THE CURRENT WEAKNESS OF THE MARK CALIFORNIA STATE TRANSPORTATION OFFICIALS SAID THAT PRIOR TO LAST WEEK'S EARTHQUAKE THEY HAD TEMPORARILY FROZEN SPENDING ON ADDITIONAL HIGHWAY PROJECTS AND HAD ALLOCATED ONLY ABOUT ONE THIRD OF THE PROJECTED ONE BILLION DOLLARS NEEDED TO SHORE UP HIGHWAYS AGAINST SEISMIC STRESS TESTIFYING BEFORE A STATE LEGISLATIVE COMMITTEE IN SACRAMENTO THESE OFFICIALS PROVIDED THE MOST SOBERING ASSESSMENT YET OF CALIFORNIA'S HIGHWAY FINANCING WOES AND THE DIFFICULTIES THE STATE FACES IN REBUILDING DAMAGED ROADS AND OVERPASSES THE SHORTCOMINGS HIGHLIGHTED AT THE HEARING COULD CREATE BIG HEADACHES FOR STATE POLITICIANS AND ARE LIKELY TO FUEL DEMANDS FOR HEFTIER FEDERAL ASSISTANCE TO ECONOMICALLY HARD HIT SOUTHERN CALIFORNIA INDEED EARLIER YESTERDAY IN WASHINGTON THE CLINTON ADMINISTRATION INDICATED ITS INTENTION TO ASK CONGRESS PERHAPS DURING THE NEXT FEW DAYS TO APPROPRIATE ABOUT FOUR BILLION DOLLARS IN QUAKE RELIEF DESPITE CALLS FROM SOME REPUBLICANS THAT SUCH UNANTICIPATED SPENDING SHOULD BE OFFSET BY SPENDING CUTS ELSEWHERE LAURA TYSON HEAD OF THE WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS SAID THAT THE WHITE HOUSE PLANS TO USE AN EMERGENCY CLAUSE IN THE DEFICIT REDUCTION LAW TO EXEMPT THE APPROPRIATIONS FROM EXISTING CAPS ON SPENDING QUOTE WE'RE TALKING IN THE RANGE OF FOUR BILLION DOLLARS QUOTE SHE SAID CAUTIONING THAT THE FINAL NUMBER COULD BE LARGER MINDFUL OF CALIFORNIA'S POLITICAL IMPORTANCE THE ENVIRONMENTAL PROTECTION AGENCY AS EXPECTED ALSO CANCELED PLANS TO WITHHOLD AS MUCH AS EIGHT HUNDRED MILLION DOLLARS IN FEDERAL HIGHWAY FUNDS AS A RESULT OF THE STATE'S REFUSAL TO SET UP CENTRALIZED AUTO INSPECTION STATIONS BUT UNLESS A COMPROMISE IS WORKED OUT FEDERAL CLEAN AIR LAWS COULD PUT THOSE FUNDS IN JEOPARDY NEXT YEAR AT THE HEARING JAMES VAN LOBEN SELS DIRECTOR THE STATE'S TRANSPORTATION AGENCY DECLINED TO PROVIDE SPECIFIC REPAIR COSTS FOR THE EIGHT MAJOR FREEWAY STRUCTURES THAT COLLAPSED OR OTHER DAMAGED ROADWAYS IN THE AREA SOME LAWMAKERS WERE SHARPLY CRITICAL OF PAST SPENDING PRIORITIES WITH ONE STATE SENATOR ACCUSING THE AGENCY OF SPENDING MORE MONEY ON FREEWAY LANDSCAPING THAN ON SEISMIC SAFETY ACCORDING TO NEW FIGURES RELEASED BY LAWMAKERS LESS THAN TEN PERCENT OF ONE THOUSAND FIFTY SIX MULTIPLE COLUMN BRIDGES SLATED FOR SEISMIC RETROFITS AFTER THE NINETEEN EIGHTY NINE SAN FRANCISCO AREA QUAKE HAVE BEEN COMPLETED WITH ANOTHER THREE HUNDRED THIRTY FOUR IN VARIOUS STAGES OF PRE CONSTRUCTION IT WILL COST A TOTAL OF ONE POINT FIVE BILLION DOLLARS JUST TO SHORE UP THOSE BRIDGES AND FIFTEEN LARGE TOLL BRIDGES AROUND THE STATE ACCORDING TO THE REPORT BY THE STATE ASSEMBLY TRANSPORTATION COMMITTEE WHICH CONCLUDES THAT SUCH RETROFIT PROJECTS HAVE LANGUISHED AS A PRIORITY THE TEMPORARY FREEZE ON NEW PROJECTS AND HIRING BY THE TRANSPORTATION AGENCY DAYS BEFORE THE QUAKE REFLECTS ESTIMATES THAT THE STATE FACES A SHORTAGE OF AS MUCH AS SIX BILLION DOLLARS IN HIGHWAY REPAIR AND CONSTRUCTION ACCOUNTS LATER IN THE DECADE TO COPE WITH THE ROAD DAMAGE RECORD NUMBERS OF AREA RESIDENTS TOOK TO TRAINS CARPOOLS AND OTHER MEANS OF GETTING TO WORK THAT ARE RELATIVELY UNUSUAL FOR SOUTHERN CALIFORNIA MORE THAN TWENTY FIVE THOUSAND COMMUTERS TEN TIMES THE TYPICAL NUMBER ON SOME ROUTES TOOK DOUBLE DECK METROLINK TRAINS TO REACH OFFICES IN BURBANK DOWNTOWN LOS ANGELES AND ELSEWHERE SEPARATELY BUILDING OFFICIALS ALREADY HAVE IDENTIFIED ABOUT ONE BILLION DOLLARS IN EARTHQUAKE RELATED STRUCTURAL DAMAGE IN LOS ANGELES WITH ONLY SIXTY PERCENT OF DAMAGED BUILDINGS INSPECTED SO FAR FLAGSTAR COMPANIES AFTER NEARLY FOUR YEARS OF LOSSES SAID IT WILL CLOSE OR SELL TWO HUNDRED SEVENTY RESTAURANTS AND SWALLOW ONE POINT SEVEN BILLION DOLLARS IN FOURTH QUARTER CHARGES TO SHORE UP ITS BALANCE SHEET THE SPARTANBURG S. C. COMPANY WHICH OWNS OR FRANCHISES FIVE RESTAURANT CHAINS ALSO SAID IT PLANS TO OVERHAUL MANY OF ITS APPROXIMATELY ONE THOUSAND DENNY'S OUTLETS TO MEET INCREASED COMPETITION THE CHARGES RESULTED IN A FOURTH QUARTER LOSS OF ONE POINT SIX FIVE BILLION DOLLARS OR THIRTY EIGHT DOLLARS AND NINETY SEVEN CENTS A SHARE THAT COMPARED WITH A YEAR EARLIER LOSS OF ONE HUNDRED FIFTY EIGHT POINT TWO MILLION DOLLARS OR FIVE DOLLARS A SHARE REVENUE IN THE FOURTH QUARTER ROSE NINE POINT SIX PERCENT TO ONE POINT OH TWO BILLION DOLLARS FROM NINE HUNDRED TWENTY FIVE POINT NINE MILLION DOLLARS THE ONE POINT SEVEN BILLION DOLLARS IN CHARGES INCLUDES TWO HUNDRED TWENTY FIVE MILLION DOLLARS TO COVER FLAGSTAR'S RESTAURANT RESTRUCTURING AND ONE POINT FIVE BILLION DOLLARS FOR A WRITE OFF OF GOODWILL THAT GOODWILL WAS INCURRED IN NINETEEN EIGHTY NINE WHEN CONISTON PARTNERS BOUGHT CONTROLLING INTEREST IN THE COMPANY WHICH IS NOW CONTROLLED BY KOHLBERG KRAVIS ROBERTS AND COMPANY GOODWILL OR THE EXCESS OVER BOOK VALUE PAID FOR A COMPANY'S ASSETS IS TYPICALLY DEDUCTED FROM FUTURE PROFITS BUT FLAGSTAR SAID YESTERDAY THAT ITS FINANCIAL RESULTS REPEATEDLY HAD FALLEN SHORT OF THE FORTY EIGHT MILLION DOLLARS A YEAR IN EARNINGS NEEDED TO AMORTIZE THE GOODWILL QUOTE ASSUMING THE CONTINUATION OF THE PRESENT TREND WE WOULD CONTINUE TO SHOW A NET LOSS FOR A LONG PERIOD OF TIME QUOTE SAID SPOKESMAN COLEMAN SULLIVAN INDUSTRY ANALYSTS SAID THEY WERE SURPRISED BY THE TIMING OF THE WRITE OFF BUT THEY ADDED THAT THE MOVE WOULD HELP STRAIGHTEN OUT THE COMPANY'S BALANCE SHEET AND MAKE IT EASIER FOR FLAGSTAR TO BEGIN POSTING PROFITS STILL THEY CAUTIONED THAT THE COMPANY'S HUGE DEBT LOAD SOME TWO POINT FOUR BILLION DOLLARS AND OUTDATED RESTAURANTS WOULD MAKE IT DIFFICULT TO POST PROFITS THIS YEAR THIS IS ANOTHER RECOGNITION THAT THE PRICE OF THE BUYOUT WAS TOO HIGH SAID BARRY STOUFFER AN ANALYST WITH J. C. BRADFORD TRAFFIC AT DENNY'S THE COMPANY'S FLAGSHIP CHAIN DROPPED SEVEN PERCENT LAST QUARTER DINERS ANALYSTS SAID WERE ABANDONING THE CHAIN FOR NEWER MORE ECLECTIC FOOD CHAINS SEVERAL OF THE COMPANY'S RECENT EFFORTS TO WIN BACK CUSTOMERS INCLUDING AN ALL YOU CAN EAT PROMOTION HAVE FLOPPED PERHAPS MORE IMPORTANT THE CHAIN'S IMAGE HAS BEEN BRUISED BY A SPATE OF LAWSUITS CHARGING DENNY'S WITH DISCRIMINATION LAST YEAR FLAGSTAR SIGNED A PACT WITH THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE TO INCREASE MINORITY MANAGEMENT AND VENDORS AT THE COMPANY TO TURN THE CHAIN AROUND FLAGSTAR SAID YESTERDAY THAT IT PLANS TO REVAMP MANY OF ITS DENNY'S OUTLETS OVER THE NEXT TWO YEARS BY ADDING NEW FACADES MORE LIGHTS NEW MENUS AND CONTEMPORARY LOGOS A LOT OF THOSE STORES HAVEN'T BEEN TOUCHED IN TWENTY YEARS SAID FLAGSTAR'S MR. SULLIVAN FLAGSTAR WILL ALSO TRY TO WEED OUT THE UNPROFITABLE RESTAURANTS FROM ITS OTHER OPERATIONS EL POLLO LOCO HARDEE'S QUINCY'S AND CANTEEN OF THE TWO HUNDRED SEVENTY RESTAURANTS TARGETED FOR SALE OR CLOSING ONE HUNDRED THIRTY FIVE ARE DENNY'S FORTY FIVE ARE EL POLLO LOCOS AND NINETY ARE QUINCY'S LOCATIONS WHILE SOME MAY CLOSE THE COMPANY SAID IT HOPES TO SELL MOST TO FRANCHISERS FOR ALL OF NINETEEN NINETY THREE FLAGSTAR REPORTED A LOSS INCLUDING CHARGES OF ONE POINT SEVEN TWO BILLION DOLLARS OR FORTY DOLLARS AND NINETY THREE CENTS A SHARE COMPARED WITH A YEAR AGO LOSS OF TWO HUNDRED TWENTY FIVE MILLION DOLLARS OR NINE DOLLARS AND TWENTY NINE CENTS A SHARE REVENUE ROSE SIX POINT SEVEN PERCENT TO THREE POINT NINE SEVEN BILLION DOLLARS FROM THREE POINT SEVEN TWO BILLION DOLLARS IN NASDAQ STOCK MARKET TRADING YESTERDAY FLAGSTAR SHARES FELL TWENTY FIVE CENTS APIECE TO TEN DOLLARS AND TWENTY FIVE CENTS U. S. OFFICIAL RESERVE ASSETS FELL SIX HUNDRED MILLION DOLLARS IN DECEMBER TO SEVENTY THREE POINT FOUR FOUR BILLION DOLLARS THE TREASURY DEPARTMENT SAID LAST MONTH'S DECREASE COMPARED WITH A FIVE HUNDRED EIGHT MILLION DOLLAR DECLINE IN RESERVE ASSETS IN NOVEMBER TO SEVENTY FOUR POINT OH FOUR BILLION DOLLARS THE DEPARTMENT SAID THE NATION'S HOLDINGS OF FOREIGN CURRENCIES DECREASED FIVE HUNDRED THIRTY EIGHT MILLION DOLLARS IN DECEMBER TO FORTY ONE POINT FIVE THREE BILLION DOLLARS WHILE ITS GOLD RESERVES FELL ONE MILLION DOLLARS TO ELEVEN POINT OH FIVE BILLION DOLLARS U. S. HOLDINGS OF I. M. F. SPECIAL DRAWING RIGHTS LAST MONTH FELL FIFTY TWO MILLION DOLLARS TO NINE POINT OH FOUR BILLION DOLLARS AND ITS RESERVE POSITION AT THE I. M. F. DROPPED NINE MILLION DOLLARS TO ELEVEN POINT EIGHT TWO BILLION DOLLARS AMERICAN EXPRESS PLANS TO SPEND OVER ONE BILLION DOLLARS TO SPIN OFF ITS LEHMAN BROTHERS INVESTMENT BANKING UNIT THE COMPANY WILL BUY NEWLY CREATED LEHMAN STOCK A CAPITAL INFUSION INTENDED TO PUT THE UNIT ON SOUND FINANCIAL FOOTING FOR PUBLIC OWNERSHIP THE LEHMAN COMMON SHARES WILL BE DISTRIBUTED TO AMERICAN EXPRESS SHAREHOLDERS AS A DIVIDEND IN APRIL NYNEX SAID IT WILL SLASH ITS WORK FORCE OVER TWENTY PERCENT AND TAKE A ONE POINT SIX BILLION DOLLAR CHARGE RESULTING IN RECORD LOSSES FOR THE FOURTH QUARTER AND THE YEAR FLAGSTAR SAID IT WILL CLOSE OR SELL TWO HUNDRED SEVENTY RESTAURANTS AND TAKE ONE POINT SEVEN BILLION DOLLARS IN CHARGES FOR THE FOURTH QUARTER DIGITAL EQUIPMENT IS PLANNING ITS SECOND MAJOR REORGANIZATION IN LESS THAN A YEAR COMPANY INSIDERS SAID GITANO'S DIRECTORS VOTED TO PUT THE COMPANY UP FOR SALE AFTER ONE OF ITS BIGGEST CUSTOMERS WAL MART REFUSED TO DO BUSINESS WITH THE APPAREL MARKETER WHICH RECENTLY PLEADED GUILTY TO VIOLATIONS OF U. S. CUSTOMS LAWS THE NIKKEI STOCK AVERAGE PLUMMETED NINE HUNDRED FIFTY FOUR POINT ONE NINE OR FOUR POINT NINE PERCENT MONDAY TO EIGHTEEN THOUSAND THREE HUNDRED FIFTY THREE POINT TWO FOUR HURT BY THE DEFEAT OF A PLAN TO REFORM JAPAN'S POLITICAL SYSTEM FRANK LORENZO IS EXPECTED TO ANNOUNCE THAT TWO NEW INVESTORS HAVE JOINED HIS AIRLINE VENTURE DILUTING HIS STAKE TO WELL BELOW FIFTY PERCENT FROM SEVENTY FOUR PERCENT IN AN EFFORT TO WIN TRANSPORTATION DEPARTMENT APPROVAL TO LAUNCH THE CARRIER THE HIGH COURT REJECTED AN AIRLINE INDUSTRY CHALLENGE TO WHAT CARRIERS ARGUE ARE EXCESSIVE AIRPORT FEES MERRILL LYNCH AND TWO OTHER LARGE BROKERAGE FIRMS POSTED SHARPLY HIGHER PROFIT FOR THE FOURTH QUARTER AND FULL YEAR BUT MANY INDUSTRY STOCKS FELL AS ANALYSTS SAY EVEN A MODEST UPTICK IN INTEREST RATES COULD HURT NINETEEN NINETY FOUR RESULTS BOEING'S FOURTH QUARTER PROFIT FELL FIFTEEN PERCENT ALTHOUGH THE DROP WAS SMALLER THAN EXPECTED SOME ANALYSTS LOWERED THEIR NINETEEN NINETY FOUR ESTIMATES BECAUSE BOEING PLANS TO BOOST DEVELOPMENT SPENDING TEXACO AND AMOCO REPORTED HIGHER FOURTH QUARTER PROFIT AS EXTRAORDINARY ITEMS OVERCAME LOWER OIL PRICES APPLE HAS SOLD ABOUT EIGHTY THOUSAND OF ITS HAND HELD NEWTON MESSAGEPADS ANALYSTS SAY THE SALES RESULTS CONFIRM THAT THE PRODUCT HAS FLOUNDERED COMPAQ IS RETHINKING THE DESIGN OF ITS OWN HAND HELD PERSONAL COMPUTER FOLLOWING CRITICISM OF THE NEWTON THE F. D. I. C. PROPOSED GUIDELINES TO PREVENT INSIDERS FROM REAPING EXCESSIVE PROFITS WHEN CERTAIN DEPOSITOR OWNED MUTUAL SAVINGS BANKS CONVERT TO STOCKHOLDER OWNED INSTITUTIONS MASTERCARD'S PRESIDENT AND CHIEF WILL JOIN ADVANTA A FINANCIAL SERVICES FIRM AS EXECUTIVE VICE CHAIRMAN ELI LILLY'S RATING ON ABOUT NINE HUNDRED MILLION DOLLARS OF DEBT WAS LOWERED BY MOODY'S WHICH FORESEES LOWER PROFIT MARGINS WORDPERFECT PLANS TO DISMISS ONE THOUSAND WORKERS OR SEVENTEEN POINT FIVE PERCENT OF ITS WORLD WIDE FORCE PARTLY TO BOOST PROFIT WITH AN EYE TOWARD A PUBLIC STOCK OFFERING BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED NINETY NINE POINT FOUR OH OFF EIGHT POINT FOUR ONE COMMODITIES OIL FIFTEEN DOLLARS AND SEVENTEEN CENTS A BARREL UP TWENTY THREE CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY THREE POINT ONE TWO UP ONE POINT OH TWO SPOT INDEX ONE HUNDRED TWENTY NINE POINT ONE ONE OFF ZERO POINT TWO NINE PUMMELED BY CIGARETTE PRICE WARS AND FLUCTUATING FOREIGN CURRENCIES AMERICAN BRANDS INCORPORATED SAID THAT FOURTH QUARTER NET INCOME FELL TWENTY PERCENT AMERICAN BRANDS BASED IN OLD GREENWICH CONNECTICUT REPORTED FOURTH QUARTER NET INCOME OF ONE HUNDRED EIGHTY SEVEN POINT FOUR MILLION DOLLARS OR NINETY TWO CENTS A SHARE INCLUDING A TWO POINT SIX MILLION DOLLAR NONCASH ACCOUNTING ADJUSTMENT THE COMPANY WHICH HAS CORE BUSINESSES IN TOBACCO DISTILLED SPIRITS LIFE INSURANCE HARDWARE AND OTHER PRODUCTS HAD FOURTH QUARTER PROFIT OF TWO HUNDRED THIRTY THREE POINT THREE MILLION DOLLARS OR ONE DOLLAR AND FIFTEEN CENTS A SHARE A YEAR EARLIER REVENUE FOR THE QUARTER EDGED UP ONE POINT TWO PERCENT TO THREE POINT EIGHT TWO BILLION DOLLARS FROM THREE POINT SEVEN SEVEN BILLION DOLLARS A YEAR EARLIER THE COMPANY SAID FOURTH QUARTER REVENUE WOULD HAVE RISEN ABOUT FIVE PERCENT WITHOUT THE IMPACT OF FLUCTUATING CURRENCIES OVERSEAS FOR THE YEAR AMERICAN BRANDS REPORTED THAT NET INCOME FELL FORTY SEVEN PERCENT TO FOUR HUNDRED SIXTY NINE POINT EIGHT MILLION DOLLARS OR TWO DOLLARS AND THIRTY TWO CENTS A SHARE FROM EIGHT HUNDRED EIGHTY THREE POINT EIGHT MILLION DOLLARS OR FOUR DOLLARS AND TWENTY NINE CENTS A SHARE A YEAR EARLIER THE LATEST RESULTS INCLUDE A ONE TIME CHARGE OF ONE HUNDRED NINETY EIGHT POINT FOUR MILLION DOLLARS OR NINETY EIGHT CENTS A SHARE FOR ACCOUNTING CHANGES REVENUE FOR THE YEAR FELL SIX POINT THREE PERCENT TO THIRTEEN POINT SEVEN BILLION DOLLARS FROM FOURTEEN POINT SIX TWO BILLION DOLLARS INTEL CORPORATION MOVING TO STAKE OUT TURF IN A POTENTIALLY BIG NEW BUSINESS WHILE BOLSTERING ITS OWN MICROPROCESSOR LINE WILL UNVEIL TODAY NEW PRODUCTS THAT ALLOW USERS OF DISPARATE PERSONAL COMPUTERS TO WORK ON DOCUMENTS TOGETHER AND SEE EACH OTHER WHILE DOING SO THE SANTA CLARA CALIFORNIA CHIP MAKING GIANT SAID ONE PRODUCT CALLED PROSHARE DOCUMENT IS A SOFTWARE PROGRAM THAT ALLOWS USERS OF P. C.S IN SEPARATE LOCATIONS TO EDIT THE SAME DOCUMENT QUOTE IN ITS MOST BASIC ELEMENT YOU GET A P. C. DOCUMENT ON YOUR SCREEN SEND IT OVER THE WIRE TO ANOTHER PERSON AND YOU BOTH SEE THE SAME DOCUMENT QUOTE SAID ANDREW GROVE INTEL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER YOU CAN CHANGE IT ANNOTATE IT POINT AT IT REARRANGE THE DOCUMENT ALL THE WHILE CONVERSING OVER THE TELEPHONE ANOTHER PRODUCT CALLED PROSHARE VIDEOSYSTEM TWO HUNDRED ALLOWS P. C. USERS TO SEE ONE ANOTHER ON THEIR RESPECTIVE COMPUTER SCREENS WHILE AT THE SAME TIME WORKING OVER A DOCUMENT INTEL SAID THE PRODUCTS ARE SET TO APPEAR IN U. S. RETAIL STORES TODAY WITH A SUGGESTED RETAIL PRICE OF NINETY NINE DOLLARS FOR PROSHARE AND PRICES RANGING FROM ONE THOUSAND ONE HUNDRED NINETY NINE DOLLARS TO TWO THOUSAND FOUR HUNDRED NINETY NINE DOLLARS FOR VIDEOSYSTEM TWO HUNDRED THE VIDEO SYSTEM'S PRICE WILL VARY DEPENDING ON WHICH LOCAL TELECOMMUNICATIONS PROVIDER IS USED TO START IT UP INTEL SAID AMERICAN TELEPHONE AND TELEGRAPH COMPANY BELLSOUTH CORPORATION AND PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT AMONG OTHERS HAVE AGREED TO WORK WITH INTEL ON THE CONFERENCING PRODUCTS INTEL'S STRATEGY IN JUMPING INTO THE FLEDGLING P. C. CONFERENCING MARKET IS TWOFOLD IT WANTS TO GET IN ON A SEVENTY MILLION DOLLAR INDUSTRY THAT SOME ANALYSTS THINK COULD EXPLODE INTO THE BILLIONS OF DOLLARS BY DECADE'S END AND SINCE THE VIDEO SYSTEM REQUIRES HIGH COMPUTING POWER INTEL WANTS TO PERSUADE USERS TO QUICKLY UPGRADE TO ITS NEWEST PENTIUM CHIP AS IT FACES IMPENDING COMPETITION FROM A RIVAL POWERPC CHIP DEVELOPED BY APPLE COMPUTER INCORPORATED INTERNATIONAL BUSINESS MACHINES CORPORATION AND MOTOROLA INCORPORATED OUR WHOLE BUSINESS STRATEGY DEPENDS ON INCREASING VOLUME OF HIGHER POWERED CHIPS SO WE HAVE BEEN LOOKING FOR APPLICATIONS THAT TAKE ADVANTAGE OF THE COMPUTING POWER THAT IS AVAILABLE MR. GROVE SAID INTEL'S LAUNCH OF PRODUCTS IN THE MARKET COMES AFTER IT RECENTLY ASSEMBLED A GROUP OF COMPANIES THAT PLANS TO CREATE RULES FOR HOW P. C.S WORK TOGETHER TO HOLD CONFERENCES ON THEIR MACHINES WHILE THE CONFERENCING TECHNOLOGY HAS DEVELOPED THERE HASN'T BEEN A SINGLE DOMINANT STANDARD THAT WOULD ALLOW COMPANIES TO ENSURE THAT THEIR PRODUCTS ALL WORK TOGETHER IN SUCH CONFERENCES OTHER PROBLEMS HAVE DOGGED THE GROWTH OF COMPUTER CONFERENCING ONE HAS BEEN THE TECHNOLOGY'S RELATIVE HIGH COST BECAUSE VIDEO CONFERENCING SYSTEMS CAN RUN INTO THE TENS OF THOUSANDS OF DOLLARS THE COSTS HAVE BEEN HIGH BECAUSE COMPANIES SUCH AS PICTURETEL CORPORATION DANVERS MASSACHUSETTS PROVIDE A SEPARATE COMPUTER TO POWER THE CONFERENCING ARRANGEMENTS ALTHOUGH INTEL'S PRICES ARE FAR LOWER THE COMPANY'S P. C. PRODUCTS WON'T SUPPLANT THE ELABORATE VIDEO CONFERENCING SYSTEMS THAT PICTURETEL AND OTHER COMPETITORS PROVIDE FOR LARGE GATHERINGS SUCH AS IN A BOARD ROOM WITHOUT PERSONAL COMPUTERS ANOTHER QUESTION MARK ON THE TECHNOLOGY ANALYSTS SAY IS HOW MANY PEOPLE WILL REALLY WANT TO SEE EACH OTHER RATHER THAN CONVERSING OVER THE TELEPHONE ANALYSTS SAY THERE APPEARS TO BE MORE POTENTIAL IN COLLABORATION OF WORK OVER P. C.S GAY PARTNERS' BENEFITS GAIN FAVOR BUT THE PACE OF CHANGE IS SLOW LAW FIRMS CONSULTANTS AND MANUFACTURERS ARE ASKING MORE OFTEN ABOUT INSURING EMPLOYEES' SAME SEX MATES MOSTLY IN THE NORTHEAST AND WEST SAYS ANDREW SHERMAN OF SEGAL COMPANY IN BOSTON HOME BOX OFFICE INCORPORATED IN NEW YORK WHICH BEGAN OFFERING QUOTE SPOUSAL EQUIVALENTS QUOTE COVERAGE IN JULY SAYS COVERING GAY PARTNERS COSTS EIGHTY THREE PERCENT WHAT HETEROSEXUAL SPOUSES COST BECAUSE OF NO PREGNANCY COSTS INTERNATIONAL DATA GROUP IN BOSTON HAS TWENTY FIVE PEOPLE IN ITS NONMARRIED PARTNER PLAN ABOUT A FIFTH ARE HOMOSEXUAL COUPLES STILL CHANGE ISN'T QUICK FRANCIS MOYNIHAN OF THE NEW ENGLAND EMPLOYEE BENEFITS COUNCIL SAYS THE COVERAGE ISN'T DRAWING MORE INTEREST THAN MANY OTHER POTENTIAL NEW BENEFITS SUCH AS ON SITE DAY CARE DESPITE TALKS WITH ITS GAY AND LESBIAN CAUCUS XEROX CORPORATION OF STAMFORD CONNECTICUT DECIDES AGAINST COVERAGE BECAUSE OF COST AS WITH MANY OTHER AREAS OF BENEFITS COMPANIES WAIT TO SEE HOW CLINTON'S HEALTH CARE OVERHAUL TURNS OUT BEFORE MAKING ANY MAJOR CHANGES SEX DISCRIMINATION IT HAPPENS ONLY TO OTHERS MANY WOMEN SAY WOMEN CONTEND THAT SEX BIAS IS PREVALENT IN THE WORKPLACE BUT RARELY BELIEVE IT HAPPENS TO THEM SAY PSYCHOLOGISTS DIANA CORDOVA OF UNIVERSITY OF MICHIGAN AND FAYE CROSBY AND KAREN JASKAR OF SMITH COLLEGE THIS NOT ME ATTITUDE IS PART OF WHAT THE RESEARCHERS CALL THE DENIAL OF PERSONAL DISADVANTAGE AN OUTLOOK SHARED BY BLACK ACTIVISTS GAY MEN AND OTHERS MS. CROSBY LED STUDIES OF MEN AND WOMEN OF COMPARABLE AGE EDUCATION TRAINING AND JOB LEVEL ALTHOUGH WOMEN EARN LESS THAN MALE COUNTERPARTS AND BELIEVE THAT DISCRIMINATION IS A SOCIAL PROBLEM ONLY EIGHT PERCENT OF THE WOMEN FEEL SHORTCHANGED FIRMS TRY TO AID WORKERS IN NATURAL DISASTERS BUT RARELY HAVE FORMAL PLANS A STRING OF DISASTERS CAPPED BY LAST WEEK'S CALIFORNIA EARTHQUAKE HAS COMPANIES THINKING ABOUT HELPING EMPLOYEES IN DES MOINES IOWA MEREDITH CORPORATION IS SETTING UP A PHONE TREE SYSTEM TO KEEP WORKERS INFORMED IN DISASTERS THE PUBLISHER CLOSED ITS HEADQUARTERS FOR TWO AND ONE HALF WEEKS DURING LAST SUMMER'S FLOODS RYDER SYSTEM CREATES A DISASTER RELIEF FUND FOR WORKERS WITH EMPLOYEE DONATIONS MATCHED BY THE COMPANY ENRON WHICH RECENTLY HAD DOZENS OF WINDOWS IN ITS HOUSTON OFFICE TOWER BROKEN BY A TORNADO LETS WORKERS STAY HOME FOR NATURAL DISASTERS BASED ON PERSONAL NEEDS DAYTON HUDSON ALSO USES AN AS NEEDED LEAVE STANDARD AND PROVIDES WORKERS WITH GRANTS AND LOW INTEREST LOANS IN HOUSTON CITY EMPLOYEES DONATE FOOD CLOTHES AND MONEY TEXAS LAW BANS PAID TIME OFF FOR DISASTERS BECAUSE IT IS CONSIDERED A GIFT OF TAXPAYER MONEY HOT TIMES FOR TEMPS WHILE THE INDUSTRY REPRESENTS ONLY ABOUT ONE POINT FOUR PERCENT OF GROSS DOMESTIC PRODUCT IT GENERATED FIFTEEN PERCENT OF NEW U. S. JOBS FOR THE TWELVE MONTHS ENDED NOVEMBER THE BUREAU OF LABOR STATISTICS SAYS THE AVERAGE PART TIMER IS WORKING ABOUT TWENTY TWO HOURS A WEEK MORE THAN SIX MILLION PART TIME WORKERS WANT MORE HOURS SAYS B. L. S. ECONOMIST TOM NARDONE FORGET JOBS JOBS JOBS IT IS MEETINGS MEETINGS MEETINGS FOR THIS ADMINISTRATION THE LABOR DEPARTMENT SCHEDULES A PARLEY FEBRUARY SECOND TO SHOWCASE WHAT WORKS IN JOB TRAINING FOR UNEMPLOYED WORKERS THEN MINISTERS FROM THE GROUP OF SEVEN INDUSTRIAL NATIONS WILL HUDDLE MARCH FOURTEENTH TO START THEIR LONG RUMORED JOBS SUMMIT BOTH MEETINGS WILL BE HELD IN OR AROUND WASHINGTON ON THE ROAD TRY JOB HUNTING CAREER EXPRESS A COMBINATION BOOK STORE PERSONNEL AGENCY AND CONSULTING OFFICE OPENS IN THE HYATT REGENCY CHICAGO HOTEL THE STORE CLAIMING TO BE THE ONLY RETAIL CENTER IN THE U. S. TO SPECIALIZE IN CAREER AND JOB RELATED RESOURCES CARRIES THREE THOUSAND FIVE HUNDRED BOOKS AND OFFERS CAREER ADVICE AND RESUME WRITING SERVICES THE ADMINISTRATION VOWS TOUGHER WORK SITE MONITORING BUT SKEPTICS ABOUND LABOR SECRETARY REICH SAYS HIS AGENCY WILL TARGET THE WORST ACTORS TO AID SUCH VULNERABLE POPULATIONS AS CHILDREN THE ELDERLY AND LOW WAGE WORKERS FOR WOMEN AND MINORITIES IT WILL SHIFT FOCUS TO SYSTEMIC DISCRIMINATION FROM INDIVIDUAL CASES SOLICITOR TOM WILLIAMSON SAYS THOUGH HE NOTES THOSE CASES WILL BE TOUGHER TO BRING IN ALL WORKPLACES HE SAYS THE AGENCY WILL TRY A MORE STRATEGIC APPROACH RATHER THAN ONE THAT IS COMPLAINT DRIVEN SUCH TALK MAY BE JUST SMOKE PARTICULARLY GIVEN BUDGET CONSTRAINTS LABOR LAWYERS SAY QUOTE THE RHETORIC IS FOR MUCH TOUGHER ENFORCEMENT QUOTE SAYS GEORGE SALEM A FORMER LABOR DEPARTMENT SOLICITOR BUT I HAVEN'T NOTICED A DISCERNIBLE DIFFERENCE IN THE CASES THEY'VE BROUGHT UNION SAFETY OFFICIALS SAY OSHA HAS BEEN DRIFTING BUT THEY HOPE SAFETY CHIEF JOSEPH DEAR WILL BRING NEW TOUGHNESS OSHA IS EXPECTED TO ISSUE NEW RULES REQUIRING FIRMS TO KEEP BETTER RECORDS THAT'S THE REAL NAME OF THE GAME WHERE ENFORCEMENT IS GOING SAYS LABOR LAWYER SCOTT RAILTON EMPLOYERS WILL KEEP RECORDS THAT RAT ON THEM THE CHECKOFF CHIEF OF SELF POLICE MIXED METAPHOR DIVISION AT A BRIEFING ON WORKPLACE ENFORCEMENT SECRETARY REICH SAYS WE HAVE TO CARRY A STICK AND MAKE SURE THERE ARE NO BAD APPLES HE QUICKLY ADDS WAIT LET ME START AGAIN LOOKING FOR WORK QUOTE VIBRANT QUOTE CITIES FOR HIRING INCLUDE LAS VEGAS PHOENIX CHICAGO SALT LAKE CITY MINNEAPOLIS AND DENVER DUNHILL PERSONNEL SYSTEMS SAYS THE OFFICE OF PERSONNEL MANAGEMENT PROPOSES A TWO YEAR LIMIT ON TEMPORARY WORKERS IN SHORT TERM FEDERAL JOBS HALF THE CURRENT MAXIMUM ACTION AUTO RENTAL INCORPORATED WHICH ENTERED CHAPTER ELEVEN BANKRUPTCY PROTECTION A YEAR AGO FILED DOCUMENTS WITH THE U. S. BANKRUPTCY COURT IN CLEVELAND TO PERMIT THE ORDERLY LIQUIDATION OF ITS ASSETS THE AUTO RENTAL CONCERN SAID THE DECISION TO LIQUIDATE QUOTE IS A CONSENSUAL ONE WITH GENERAL MOTORS ACCEPTANCE CORPORATION AFTER THE TWO PARTIES WERE UNABLE TO REACH AN AGREEMENT ON THE TERMS OF FUTURE FINANCING FOR THE COMPANY QUOTE ACTION SAID IT COULD NOT ATTRACT ALTERNATIVE FINANCING IN DETROIT G. M. A. C. SAID IT HAD BEEN PROVIDING FINANCING FOR ACTION AUTO'S CAR FLEET FOR THE PAST DECADE AND IS THE CONCERN'S LARGEST CREDITOR G. M. A. C. THE FINANCE ARM OF GENERAL MOTORS CORPORATION SAID IT IS OWED ABOUT FORTY MILLION DOLLARS AND IS SEEKING TO TAKE POSSESSION OF AND LIQUIDATE SLIGHTLY MORE THAN FIVE THOUSAND G. M. VEHICLES ACTION G. M. A. C. AND THE UNSECURED CREDITORS' COMMITTEE AGREED THAT TOP ACTION MANAGERS WILL SUPERVISE THE ORDERLY WINDDOWN AND LIQUIDATION WHICH WILL BEGIN IMMEDIATELY CRAIG HONS ACTION'S PRESIDENT SAID THE COMPANY'S FIVE HUNDRED EMPLOYEES WILL BE ABLE TO RECEIVE A FAIR SEVERANCE PACKAGE CAR RENTALS CEASED YESTERDAY ACTION SAID IT WILL HELP LONG TERM RENTERS FIND OTHER COMPANIES WHILE SHORT TERM RENTALS WILL BE ALLOWED TO RUN THEIR NORMAL COURSE ACTION AUTO SAID THAT IN THE NEXT SEVERAL WEEKS IT WILL FILE A COMPREHENSIVE PLAN OF ORDERLY LIQUIDATION WITH THE BANKRUPTCY COURT THE PLAN WILL CONTEMPLATE RESOLUTION OF ALL LITIGATION BY AND BETWEEN ACTION G. M. A. C. AND THE UNSECURED CREDITORS' COMMITTEE AND FOR PAYMENT OF ALL COSTS OF ADMINISTRATION AND ALL PRIORITY CLAIMS ALARMED BY THE RECENT RESIGNATION OF SEVERAL KEY REFORMERS FROM THE RUSSIAN GOVERNMENT PRESIDENT CLINTON'S TOP ADVISER ON RUSSIA WARNED THAT ANY BACKSLIDING BY MOSCOW COULD LEAD TO HYPERINFLATION AND POLITICAL CHAOS THE WARNING OF STROBE TALBOTT WAS A DRAMATIC DEPARTURE FROM HIS USUALLY UPBEAT ASSESSMENTS ABOUT RUSSIA'S FUTURE AND HIS OWN EARLIER SUGGESTION THAT RUSSIA NEEDED QUOTE LESS SHOCK AND MORE THERAPY QUOTE THAT COMMENT MADE AFTER THE STRONG SHOWING OF RUSSIAN FASCISTS AND COMMUNISTS IN LAST MONTH'S PARLIAMENTARY ELECTIONS WAS CRITICIZED BITTERLY BY RUSSIAN REFORMERS WHO CLAIMED THAT IT UNDERMINED THEIR EFFORTS TO MAKE POLITICALLY PAINFUL BUT NECESSARY REFORMS AFTER TOUTING RUSSIA AS ITS NUMBER ONE FOREIGN POLICY SUCCESS THE CLINTON ADMINISTRATION NOW IS FINDING ITS POLICY CAPTIVE TO OVERSEAS DEVELOPMENTS THAT IT NEVER COULD HAVE EXPECTED TO CONTROL WHILE INSISTING THAT AMERICAN BILATERAL ASSISTANCE SHOULDN'T BE LINKED TO RUSSIA'S FUTURE MACROECONOMIC PERFORMANCE MR. TALBOTT SAID THE U. S. WOULD ONLY SUPPORT INCREASED MULTILATERAL LENDING TO RUSSIA INCLUDING FUNDS TO EASE THE SOCIAL BURDEN FOR ORDINARY RUSSIANS IF MOSCOW EXERCISED FISCAL AND MONETARY RESPONSIBILITY AT THE SAME TIME IT ISN'T CLEAR HOW MUCH OF AN EFFECT THE WARNING WILL HAVE ON MOSCOW'S DECISION MAKING RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN SAID RECENTLY THAT HIS GOVERNMENT WAS ABANDONING MARKET ROMANTICISM AND WOULD NOW CONCENTRATE ON BOOSTING PRODUCTION IN OLDSTYLE COMMUNIST HEAVY INDUSTRIES A COURSE U. S. OFFICIALS FEAR WILL LEAD TO LARGER BUDGET DEFICITS AND RAGING INFLATION HOWEVER MR. CHERNOMYRDIN ALSO HAS INVITED AN INTERNATIONAL MONETARY FUND TEAM TO MOSCOW THIS WEEK TO HELP FORMULATE A NEW RUSSIAN BUDGET A CLEAR BID TO FREE UP ONE POINT FIVE BILLION DOLLARS IN PROMISED FUNDS THE CLINTON ADMINISTRATION IS HOLDING OUT THE PROMISE OF INCREASED MULTILATERAL LENDING AS AN INCENTIVE FOR CONTINUED REFORM BUT MANY RUSSIANS ARE SKEPTICAL THAT THE LENDERS WILL EVER DO ENOUGH TO JUSTIFY THE PAIN OF CONTINUED CHANGE MR. TALBOTT AND BRIAN ATWOOD HEAD OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT SPENT A GOOD PART OF THE HEARING DEFENDING THE CLINTON ADMINISTRATION'S OVERALL POLICY TOWARD RUSSIA PARTICULARLY THE MANAGEMENT OF THE TWO POINT FIVE BILLION DOLLAR FOREIGN AID PROGRAM FOR THE FORMER SOVIET REPUBLICS SUBCOMMITTEE CHAIRMAN PATRICK LEAHY D. VERMONT SUGGESTED THAT THE CLINTON ADMINISTRATION WAS GETTING TOO CLOSE TO PRESIDENT BORIS YELTSIN AND NEGLECTING OTHER IMPORTANT REFORMERS AND SEVERAL SENATORS RAISED CONCERNS THAT THE U. S. WAS ALLOWING RUSSIA TO DICTATE U. S. FOREIGN POLICY PARTICULARLY ON THE QUESTION OF WHETHER TO BRING EASTERN EUROPE INTO THE NORTH ATLANTIC TREATY ORGANIZATION SPEAKING AFTER THE HEARING MR. ATWOOD EXPRESSED CONCERN THAT THE SUBCOMMITTEE'S DETAILED QUESTIONING COULD SLOW DOWN FUTURE DISBURSEMENT OF AID WE CAN GET THEM THE DETAIL THEY ASK FOR BUT IT WILL SLOW DOWN THE PROCESS CONSIDERABLY HE SAID TONIGHT PRESIDENT CLINTON IS EXPECTED TO GIVE A PROMINENT PLACE TO HIS HEALTH CARE REFORM IN THE STATE OF THE UNION MESSAGE THE DEBATE OVER HIS PLAN HAS BEEN DOMINATED BY POLICY WONKS WHO LIKE THE PRESIDENT HIMSELF ARE NEVER SO HAPPY AS WHEN THEY ARE PORING OVER THE DETAILS LOST IN ALL THIS HAS BEEN THE LARGE QUESTION OF WHETHER A MASSIVE TRANSFORMATION OF OUR HEALTH CARE SYSTEM IS NECESSARY THE IDEA THAT THERE IS A SEVERE HEALTH CARE CRISIS STEMS FROM FOUR SOURCES THE FIRST IS THE INSECURITY GENERATED BY THE MOST RECENT RECESSION MOST AMERICANS' HEALTH INSURANCE IS LINKED TO THEIR JOBS WITH EMPLOYERS PAYING ABOUT EIGHTY SIX PERCENT OF THE TOTAL COST LOSE YOUR JOB LOSE YOUR COVERAGE GET A NEW JOB AND YOU MIGHT NOT GET COVERAGE IF YOU HAVE A HEALTH PROBLEM THEN THERE IS THE CONCERN OVER COSTS ALREADY CLAIMING FOURTEEN PERCENT OF OUR GROSS NATIONAL PRODUCT A FIGURE HIGH BY INTERNATIONAL STANDARDS HEALTH CARE COSTS HAVE BEEN RISING MANY PEOPLE HAVE CONVINCED THEMSELVES THAT THIS WILL LEAD TO THE IMPOVERISHMENT OF AMERICA ADDITIONAL PRESSURE FOR REFORM COMES FROM THE NOTION THAT EVERYONE SHOULD HAVE HEALTH INSURANCE AS A MATTER OF RIGHT SINCE AT LEAST THIRTY SEVEN MILLION AMERICANS ARE NOW WIDELY SAID TO BE WITHOUT COVERAGE THE SYSTEM MUST BE FAILING THE FOURTH CONTRIBUTOR TO THE SENSE OF CRISIS IS THE LIBERAL BIAS OF THE MAJOR MEDIA THIS HELPS EXPLAIN ONE OF THE GREAT ANOMALIES IN THE DEBATE ALTHOUGH SEVENTY FIVE PERCENT OF AMERICANS HAVE BEEN CONVINCED THAT THERE IS A CRISIS EIGHTY PERCENT SIMULTANEOUSLY REPORT THEMSELVES AS QUOTE VERY QUOTE OR QUOTE SOMEWHAT QUOTE SATISFIED WITH THEIR OWN HEALTH CARE ALL THIS ADDS UP TO A GREAT POLITICAL OPPORTUNITY FOR THE DEMOCRATS TO WED THE MIDDLE CLASS TO THE PARTY IT NEEDS A MODERN VERSION OF ROOSEVELT'S SOCIAL SECURITY SYSTEM ENTER HEALTH CARE REFORM UNFORTUNATELY FOR THE PRESIDENT'S POLITICAL STRATEGISTS HOWEVER THE CRISIS ON WHICH THE CASE FOR THIS REFORM RESTS IS AN ARTIFICIAL ONE AND THE INTENDED BENEFICIARIES ARE ITS BIGGEST LOSERS TAKE THE MUCH HERALDED FOURTEEN PERCENT FIGURE THE APPROXIMATELY NINE HUNDRED FORTY BILLION DOLLARS AMERICANS SPENT ON HEALTH CARE IN NINETEEN NINETY THREE DID INDEED REPRESENT A BIT MORE THAN FOURTEEN PERCENT OF THE NATION'S TOTAL OUTPUT OF GOODS AND SERVICES BUT BY WHAT STANDARD IS THAT TOO MUCH IF WE PREFER TO DEVOTE A LARGER PORTION OF OUR INCOMES TO TOP QUALITY HEALTH CARE THAN DO OTHER NATIONS WHAT IS WRONG WITH THAT AFTER ALL WE DO NOT SETTLE FOR THE HOUSING STANDARDS THAT PREVAIL IN POORER COUNTRIES WE INSIST ON CENTRAL HEATING AND AIR CONDITIONING THE LATTER NOW INSTALLED IN NEARLY HALF OF THE HOMES OF EVEN THOSE WE CLASSIFY AS POOR NOR ARE TINY CARS WITH MECHANICAL CLUTCHES COMMON ELSEWHERE THE STUFF OF THE AMERICAN DREAM NEITHER IS SPARTAN HEALTH CARE INTERNATIONAL COMPARISONS ALSO GIVE NO WEIGHT TO DIFFERENCES IN THE QUALITY OF SERVICE THE CONGRESSIONAL QUARTERLY CITES THE FACT THAT JAPAN'S GOVERNMENT PLAYS A MUCH GREATER ROLE IN PRIVATE HEALTH CARE DELIVERY THAN DOES THE U. S. GOVERNMENT TO EXPLAIN HOW JAPAN KEEPS ITS COSTS CONSIDERABLY LOWER THAN THOSE OF THE U. S. NO MENTION OF WHAT FRED BARNES CALLS JAPANESE ASSEMBLY LINE TREATMENT FROM DOCTORS WHO SEE AN AVERAGE OF FORTY NINE PATIENTS A DAY AND WHO PERFORM GYNECOLOGICAL EXAMINATIONS ON SCORES OF WOMEN ASSEMBLED IN A SINGLE ROOM AS PHYSICIANS SCRAMBLE TO MAINTAIN INCOMES IN THE FACE OF TOO LOW PER CAPITA REIMBURSEMENTS BECAUSE PAYMENT IN JAPAN IS BASED ON PATIENT VISITS THE DOCTOR KEEPS THE AVERAGE LENGTH TO FIVE MINUTES AND THE JAPANESE ON AVERAGE MAKE TWELVE VISITS A YEAR OR ABOUT THREE TIMES AS MANY AS AMERICANS WHOSE AVERAGE VISIT LENGTH IS FIFTEEN TO TWENTY MINUTES THESE DECREASES IN CONVENIENCE FOR PATIENTS AND INCREASES IN PATIENT TIME AND TRAVEL COSTS POINTS OUT PATRICIA DANZON OF THE WHARTON SCHOOL ARE EXCLUDED FROM THE NATIONAL HEALTH ACCOUNTS AND FROM PUBLIC VISIBILITY INTERNATIONAL COST COMPARISONS ALSO IGNORE QUEUING AND OTHER FORMS OF RATIONING THAT REDUCE RECORDED COSTS BY FORCIBLY LIMITING THE AVAILABILITY OF THE SERVICE JOSEPH WHITE A BROOKINGS INSTITUTION RESEARCHER WHOSE COMPARISON OF AMERICA'S SYSTEM WITH THOSE OF SIX OTHER NATIONS LEADS HIM TO CONCLUDE THAT AMERICA'S HEALTH CARE SYSTEM MUST BE REFORMED NEVERTHELESS CONCEDES THAT OTHER COUNTRIES HAVE RESTRICTED CAPACITY AND FORCED PATIENTS TO ENDURE DELAYS THAT WOULD BE INTOLERABLE IN AMERICA AND GERMANY ACHIEVES ITS LOW COSTS BY LIMITING MALPRACTICE SUITS ESCHEWING EXTRAORDINARY LIFE PROLONGING MEASURES FOR THOSE JUDGED TO BE TERMINALLY ILL BUYING FEWER PIECES OF HIGH TECHNOLOGY EQUIPMENT THAN AMERICANS TYPICALLY USE AND BY PRICE CONTROLS EVEN SO COSTS ARE SOARING AND THE INSURANCE FUNDS ARE BROKE DESPITE PREMIUMS THAT COME TO THIRTEEN PERCENT OF PAYROLLS INTERNATIONAL COMPARISONS OMIT SOCIETAL ATTITUDES THE HIGH EXPENDITURES IN THE U. S. REFLECT A BASIC AMERICAN VALUE DAMN THE COSTS SAVE LIVES AND USE EXPENSIVE TECHNOLOGIES WHENEVER NECESSARY DON'T BLAME THIS ON YOUR DOCTOR EZEKIEL EMANUEL OF THE HARVARD MEDICAL SCHOOL NOTES THAT FEWER THAN ONE OUT OF TEN PHYSICIANS SURVEYED WOULD PUT GRANDMA ON A RESPIRATOR IF SHE HAD A STROKE WHEREAS FORTY PERCENT OF FAMILY MEMBERS WOULD HIGH HEALTH CARE COSTS IN AMERICA ALSO REFLECT ANOTHER DISTINCTIVE FEATURE OF OUR SOCIETY THE SOCIAL PATHOLOGY OF OUR UNDERCLASS PRESIDENT CLINTON POINTED THIS OUT IN OCTOBER TO AN ASSEMBLY OF DOCTORS AT JOHNS HOPKINS WE'LL NEVER GET THE COST OF HEALTH CARE DOWN TO WHERE IT IS IN OTHER COUNTRIES AS LONG AS WE HAVE HIGHER RATES OF TEEN PREGNANCIES AND HIGHER RATES OF LOW BIRTHWEIGHT BIRTHS AND HIGHER RATES OF AIDS AND MOST IMPORTANT OF ALL HIGHER RATES OF VIOLENCE AND HE MIGHT HAVE ADDED NOTHING IN HIS OWN HEALTH CARE PLAN ADDRESSES ANY OF THOSE PROBLEMS THE SECOND BASIS OF COMPARISON OFFERED TO SUPPORT THE CONTENTION THAT WE ARE SPENDING TOO MUCH ON HEALTH CARE IS OUR OWN PAST IN NINETEEN SIXTY WE DEVOTED FIVE PERCENT OF G. N. P. TO HEALTH CARE BY NINETEEN NINETY THREE WE WERE UP TO FOURTEEN PERCENT YET WE DO NOT COMPARE THE PRICE OF A MODERN AUTOMOBILE WITH THAT OF A MODEL T. AND THEN COMPLAIN ABOUT HOW MUCH MORE THE NEW CAR COSTS SO WHY IGNORE QUALITY CHANGES IN MEDICAL CARE AN OPERATION TO REMOVE CATARACTS ONCE INVOLVED A HOSPITAL STAY OF TWO TO FOUR DAYS AND AN EVEN LONGER RECUPERATIVE PERIOD AT HOME THAT SURGERY IS NOW TYPICALLY DONE ON AN OUTPATIENT BASIS AS IRA COHEN FORMERLY CHIEF OF THE DIVISION OF GENERAL MEDICINE AT NEW YORK CITY'S BETH ISRAEL HOSPITAL TELLS US IN THE DAYS WHEN THE ELECTROCARDIOGRAM WAS THE SOLE DIAGNOSTIC TOOL THE VICTIM OF A HEART ATTACK COULD COUNT ON A FOUR TO SIX WEEK HOSPITAL STAY NOW IMPROVED DIAGNOSTIC TECHNIQUES AND EQUIPMENT PERMIT THE DOCTOR TO DISCHARGE THE TYPICAL HEART PATIENT IN A WEEK OR TEN DAYS YET ASTONISHINGLY THE REDUCTIONS IN SUFFERING AND LOST OUTPUT NOWHERE APPEAR IN OUR ACCOUNTING OF TRENDS IN HEALTH CARE COSTS NOR CAN WE CREDIT THE PROJECTIONS THAT BRING US FROM FOURTEEN PERCENT TO TWENTY SIX PERCENT OF G. N. P. BY TWO THOUSAND THIRTY SUCH PROJECTIONS ASSUME THAT RECENT TRENDS IN HEALTH CARE PRICES AND IN THE VOLUME OF SERVICES CONSUMED WILL CONTINUE INDEFINITELY BUT THIS IS UNLIKELY THE HEALTH CARE INDUSTRY IS OFFERING AN UNPRECEDENTED RANGE OF NEW PRODUCTS THEY WILL GO THROUGH A CYCLE OF RAPID GROWTH FOLLOWED BY FALLING PRICES AND COSTS AS COMPETITION AMONG SUPPLIERS EMERGES CONSUMERS BECOME MORE DISCRIMINATING AND COST SAVING PRODUCTION AND APPLICATION TECHNIQUES ARE DEVELOPED IN ADDITION IF FACED WITH THE COSTS OF THEIR DECISIONS CONSUMERS MIGHT ADJUST REMEMBER THE ENERGY CRISIS IF THERE IS NO CRISIS IN HEALTH CARE COSTS IS THERE ONE IN INSURANCE COVERAGE HERE WE COME TO THE SECOND MAJOR STATISTIC DRIVING THE HEALTH CARE DEBATE AT SOME POINT IN NINETEEN NINETY ONE THE LAST YEAR FOR WHICH COMPREHENSIVE DATA ARE AVAILABLE THIRTY SEVEN MILLION PEOPLE LACKED MEDICAL INSURANCE IT SHOULD BE NOTED THAT THESE CITIZENS ARE NOT DENIED HEALTH CARE EMERGENCY ROOMS PROVIDE CARE TO ALL COMERS IN FACT NONPROFIT HOSPITALS EIGHTY EIGHT PERCENT PERCENT OF THOSE IN THE U. S. CANNOT LEGALLY TURN AWAY ANY PATIENT NEEDING MEDICAL CARE OR UNREASONABLY DENY ACCESS TO ALL THE MODERN TECHNOLOGY HOSPITALS HAVE AVAILABLE AND NOT JUST FOR THE DURATION OF THE EMERGENCY THE HOSPITAL IS OBLIGED TO SEE THE TREATMENT THROUGH PER CAPITA HEALTH CARE SPENDING ON THE UNINSURED PRE MEDICARE POPULATION IS ABOUT SIXTY PERCENT OF PER CAPITA EXPENDITURES ON THE INSURED POPULATION A LEVEL SUMPTUOUS BY THE STANDARDS OF OTHER INDUSTRIAL COUNTRIES NONETHELESS IF THE THIRTY SEVEN MILLION FIGURE DID MEAN WHAT IT IS OFTEN TAKEN TO MEAN THAT FIFTEEN PERCENT OF OUR POPULATION LIVES WITH THE UNNERVING AND CONTINUAL THREAT OF BEING UNABLE TO PAY FOR MEDICAL CARE THERE WOULD CERTAINLY BE GROUNDS FOR REVISING THE WAY WE PROVIDE MEDICAL SERVICES FORTUNATELY THERE IS LESS OF A PROBLEM HERE THAN MEETS THE EYE SOME OF THE UNINSURED ARE BETWEEN JOBS SOME ARE STUDENTS ENTERING THE LABOR MARKET KATHERINE SWARTZ OF THE HARVARD UNIVERSITY SCHOOL OF PUBLIC HEALTH NOTES THAT MOST ARE UNINSURED FOR ONLY A SHORT TIME THE CHRONICALLY UNINSURED GROUP IN OUR SOCIETY NUMBERS CLOSER TO FIVE POINT FIVE MILLION THAN THIRTY SEVEN MILLION PEOPLE AND PROBABLY FEWER THAN FIVE POINT FIVE MILLION ONLY ONE PERCENT OF THOSE UNDER AGE SIXTY FIVE ARE UNINSURABLE ACCORDING TO THE EMPLOYEE BENEFIT RESEARCH INSTITUTE MORE THAN HALF OF THE UNINSURED ARE IN FAMILIES HEADED BY FULLTIME WORKERS FORTY PERCENT HAVE INCOMES IN EXCESS OF TWENTY THOUSAND DOLLARS AND TEN PERCENT HAVE INCOMES IN EXCESS OF FIFTY THOUSAND DOLLARS ONLY TWENTY NINE PERCENT ARE BELOW THE POVERTY LEVEL AND THOSE WITH INCOMES BELOW TWENTY THOUSAND DOLLARS SPEND SEVERAL TIMES AS MUCH ON ENTERTAINMENT ALCOHOL AND TOBACCO AS THEY DO ON HEALTH CARE FURTHERMORE THIRTY SEVEN PERCENT OF THE UNINSURED ARE UNDER AGE TWENTY FIVE A GENERALLY HEALTHY GROUP FOR WHOM HEALTH INSURANCE IS OFTEN NOT A COST EFFECTIVE BUY IF WE PUT ALL THIS TOGETHER WE COME UP WITH A FIGURE OF PERHAPS THREE PERCENT OF THE POPULATION WHO ALTHOUGH ABLE TO OBTAIN HEALTH CARE CANNOT OBTAIN AFFORDABLE HEALTH INSURANCE SHOULD WE PERFORM RADICAL SURGERY ON OUR HEALTH CARE SYSTEM FOR THE SAKE OF THAT THREE PERCENT BEFORE ANSWERING WITH A RESOUNDING NO WE HAVE TO CONSIDER THE POSSIBILITY THAT WHEN THE UNINSURED ARE TREATED IN A HOSPITAL AND CANNOT PAY THE COST OF THAT TREATMENT IS LOADED ONTO THE REST OF US BUT EVEN IF CROSS SUBSIDIZATION FROM THE INSURED TO THE UNINSURED DOES OCCUR THE CURE IS SIMPLE SUBSIDIZE INSURANCE FOR THE TRULY POOR AND COMPEL PAYMENT BY THE VOLUNTARILY UNINSURED THERE ARE REFORMS THAT COULD AND SHOULD BE MADE WITHIN THE CONTEXT OF OUR PRESENT SYSTEM IN ADDITION TO SUBSIDIZING THE INVOLUNTARILY UNINSURED THE MOST IMPORTANT IS TO MAKE COVERAGE QUOTE PORTABLE QUOTE SO THAT THE LOSS OF A JOB DOES NOT DEPRIVE A WORKER OF HIS INSURANCE SUCH TWEAKS TO THE SYSTEM WOULD AVOID THE DISASTER IN STORE FOR US IF WE FOLLOW THE CLINTONS DOWN THE PATH TO A HEALTH CARE SYSTEM PRESIDED OVER BY THE SAME PEOPLE ALREADY DOING SUCH A WONDERFUL JOB DELIVERING OUR MAIL MR. STELZER IS DIRECTOR OF REGULATORY POLICY STUDIES AT THE AMERICAN ENTERPRISE INSTITUTE THIS ARTICLE IS ADAPTED FROM THE CURRENT ISSUE OF COMMENTARY AUTO STOCKS ARE TRADING NEAR RECORD HIGHS FUELED BY INVESTORS' BELIEF THAT THE BIG THREE WILL POST EXCEPTIONAL EARNINGS THIS YEAR SO IS IT TIME TO SELL SEVERAL AUTO ANALYSTS SAY NO EVEN THOUGH THE GROUP TOOK A HIT IN THE STOCK MARKET YESTERDAY SURE THE STOCKS ARE ALREADY UP FORTY FIVE PERCENT TO FIFTY SEVEN PERCENT FROM JANUARY A YEAR AGO AND CERTAINLY SOME INVESTORS ARE GETTING NERVOUS YESTERDAY GENERAL MOTORS FELL THREE QUARTERS TO SIXTY AND ONE EIGHTH CHRYSLER SLID FIVE EIGHTHS TO FIFTY NINE AND SEVEN EIGHTHS AND FORD MOTOR SANK ONE AND THREE EIGHTHS TO SIXTY FIVE AND FIVE EIGHTHS YET AUTO ANALYSTS ARE BETTING THAT THE AUTO STOCKS AS A GROUP WILL GAIN AT LEAST ANOTHER TWENTY PERCENT BEFORE SPUTTERING SOME AUTO ANALYSTS EVEN SPECULATE THAT THE PEAK IS SOMEWHERE BETWEEN NINETY DOLLARS AND ONE HUNDRED DOLLARS A SHARE FOR ALL THREE COMPANIES QUOTE THE PERCEPTION OF WHAT THESE COMPANIES WILL EARN IS RISING QUOTE SAYS DAVID HEALY S. G. WARBURG'S AUTO ANALYST THE EARNINGS ARE STRONGER THAN WHAT THE STREET HAS EXPECTED THE MARKET HAS BECOME CONVINCED THAT THE RECOVERY IN CAR SALES IS REAL DEMAND FOR VEHICLES IS STRONG AS CONSUMER CONFIDENCE IN THE ECONOMY RUNS HIGH BUT THE SALES RECOVERY IS JUST PART OF THE STORY G. M. FORD AND CHRYSLER HAVE TAKEN BIG STEPS IN THE PAST COUPLE OF YEARS TO IMPROVE PROFITABILITY IN THEIR NORTH AMERICAN OPERATIONS THE BIG THREE ALSO HAVE A BIG PRICE ADVANTAGE OVER RIVAL JAPANESE MODELS WHICH NOW COST BUYERS AN AVERAGE OF TWO THOUSAND FIVE HUNDRED DOLLARS A VEHICLE MORE THAN DETROIT'S PRODUCTS FOR THAT DETROIT CAN THANK THE CLINTON ADMINISTRATION'S CAMPAIGN TO TALK UP THE YEN AND TALK TOUGH TO JAPAN ON TRADE DETROIT APPEARS POISED TO REAP THE BENEFITS FOR STARTERS THE BIG THREE SEEM TO BE RETREATING FROM THE COSTLY REBATES OR SALES INCENTIVES THAT HAVE ERODED PROFIT MARGINS FOR FIVE YEARS INSTEAD THEY ARE OFFERING A VARIETY OF LESS GENEROUS LEASING PACKAGES AND VALUE PRICED VEHICLES PAINEWEBBER'S AUTO ANALYST STEPHEN GIRSKY SAYS THAT IN GENERAL EVERY ONE PERCENTAGE POINT SAVED IN MARKETING COSTS IS WORTH AS MUCH AS SEVENTY CENTS IN PER SHARE EARNINGS THAT'S A LOT OF LEVERAGE HE SAYS CHRYSLER SLASHED ITS INCENTIVES TO AN AVERAGE OF SIX HUNDRED FIFTY DOLLARS A VEHICLE IN THE FOURTH QUARTER DOWN FROM ONE THOUSAND TWENTY DOLLARS A YEAR EARLIER FOR THE ENTIRE YEAR IT SHAVED THREE POINT FIVE PERCENTAGE POINTS FROM ITS MARKETING COSTS AS A PERCENTAGE OF SALES ANALYSTS SAY THOSE COST CUTTING MEASURES ALONE CONTRIBUTED A LARGE CHUNK OF CHRYSLER'S FOURTH QUARTER PROFIT OF SEVEN HUNDRED SEVENTY SEVEN MILLION DOLLARS OR TWO DOLLARS AND ELEVEN CENTS A SHARE WHICH EXCEEDED ANALYSTS' EXPECTATIONS SHARPLY REDUCED DISCOUNTING RESULTING IN HIGHER PRICES COULD HELP FORD AND G. M. TO POST FOURTH QUARTER EARNINGS SURPRISES NEXT MONTH AS WELL AUTO ANALYSTS BELIEVE THAT DETROIT IS POISED TO MAKE BIG GAINS IN RECOVERING MARKET SHARE LOST TO THE JAPANESE THE JAPANESE HAVEN'T BEEN ABLE TO SHIFT PRODUCTION TO MEET SURGING DEMAND FOR TRUCKS AND MINIVANS AS DETROIT HAS OVER THE PAST FEW YEARS THE JAPANESE ARE FURTHER HOBBLED BY A CONTINUING RECESSION AT HOME THE JAPANESE ARE STILL IN TROUBLE SAYS MR. GIRSKY FOR U. S. CAR PRODUCERS THE INVENTORY IS NOT OUT OF WHACK WITH REALITY CONSUMER CONFIDENCE IS HIGH THERE ARE NO RED FLAGS HERE AT ALL I WOULDN'T SELL ANY AUTO STOCKS QUOTE SO WHEN DO YOU SELL JOSEPH PHILLIPPI LEHMAN BROTHERS' AUTO ANALYST SAYS IT'S POSSIBLE THE AUTO MAKERS' STOCK PRICES MIGHT HIT A PEAK BY THE END OF THIS YEAR BUT WERTHEIM SCHRODER'S JOHN CASESA BELIEVES THE TIME TO SELL WON'T BE UNTIL A YEAR TO EIGHTEEN MONTHS FROM NOW BEFORE EARNINGS ARE EXPECTED TO PEAK SAYS MR. CASESA YOU BUY WHEN BUSINESS IS VERY BAD BUT NOT GETTING ANY WORSE AND YOU SELL WHEN BUSINESS IS VERY GOOD BUT CAN'T GET ANY BETTER WALL STREET IS MISSING THE BOAT ON PAINEWEBBER GROUP SAYS ONE PRO WHO'S OFTEN A BEAR BUT BULLISH THIS TIME EVEN THOUGH PAINWEBBER POSTED RECORD EARNINGS ALONG WITH BROKERAGE INDUSTRY LEADER MERRILL LYNCH YESTERDAY PAINEWEBBER'S STOCK FELL FIVE EIGHTHS TO TWENTY FIVE AND THREE QUARTERS THAT'S BARELY ABOVE BOOK VALUE AND FIVE POINT EIGHT TIMES REPORTED EARNINGS ASTONISHING SAYS DAVID ROCKER OF NEW YORK'S ROCKER PARTNERS WHO HAS BEEN ADDING TO HIS PAINEWEBBER HOLDINGS HE MOCKS TREND FOLLOWING INVESTORS FOR BUYING CYCLICALS WHILE ABANDONING PAINEWEBBER BECAUSE OF FEARS OF A BEAR MARKET FUNDAMENTALS DON'T SEEM TO MATTER COMPLAINS MR. ROCKER ADDING IF THINGS GET SO BAD THAT PAINEWEBBER'S LOW VALUATION IS JUSTIFIED WHAT'S GOING TO HAPPEN TO THE REST OF THE MARKET SPAGHETTI WAREHOUSE INCORPORATED OUSTED LOUIS NEEB AS CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT CITING PHILOSOPHICAL DIFFERENCES OVER THE DIRECTION OF THE ITALIAN RESTAURANT CHAIN THE COMPANY'S FOUNDER AND FORMER CHAIRMAN ROBERT R. HAWK WAS NAMED TO SUCCEED MR. NEEB AS CHAIRMAN MR. HAWK WAS ALSO NAMED INTERIM CHIEF EXECUTIVE AND INTERIM PRESIDENT SPAGHETTI WAREHOUSE ANNOUNCED THE NEWS AFTER THE CLOSE OF BUSINESS YESTERDAY COMPANY OFFICIALS COULDN'T BE REACHED TO ELABORATE MR. NEEB WHO WAS NAMED PRESIDENT IN NINETEEN NINETY ONE AND BECAME CHAIRMAN IN OCTOBER ALSO COULDN'T BE REACHED THE COMPANY SAID ITS EXPANSION WOULD BE CURTAILED UNTIL A NEW C. E. O. AND PRESIDENT IS NAMED THE TWENTY ONE YEAR OLD CHAIN WITH MOST OF ITS RESTAURANTS LOCATED IN CONVERTED URBAN WAREHOUSES SHIFTED GEARS LAST YEAR AND STARTED TO OPEN RESTAURANTS IN SUBURBAN AREAS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SPAGHETTI WAREHOUSE SHARES WERE DOWN FIFTY CENTS TO SEVEN POINT EIGHT SEVEN FIVE DOLLARS THE STOCK HAD TRADED AS HIGH AS NINETEEN DOLLARS AND FIFTY CENTS A YEAR AGO AND THIRTY DOLLARS AND SEVENTY FIVE CENTS IN LATE NINETEEN NINETY ONE ARNOLD A. KRAFT FIFTY YEARS OLD FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BACHMAN INFORMATION SYSTEMS INCORPORATED WAS NAMED PRESIDENT AND C. E. O. OF THIS MAKER OF WEATHER AND UNDERSEA RECORDING EQUIPMENT SOUTH KOREA'S FINANCE MINISTRY AIMING TO SIMPLIFY FOREIGN INVESTMENT PROCEDURES UNVEILED PLANS TO REVISE A LAW ON BRINGING FOREIGN CAPITAL INTO THE COUNTRY UNDER THE PROPOSAL EFFECTIVE JULY FIRST FOREIGN BUSINESSES THAT DON'T REQUIRE GOVERNMENT APPROVAL COULD BE LAUNCHED UPON FILING A REPORT SUCH CLEARANCE NOW TAKES AS LONG AS A MONTH THE WAITING PERIOD FOR PROJECTS NEEDING GOVERNMENT APPROVAL WOULD BE CUT TO FIVE FROM THIRTY DAYS THE REVISION ALSO WOULD LIFT A BAN ON FOREIGN INVESTMENT IN SECTORS THAT USE LOTS OF ENERGY OR IMPORTED RAW MATERIALS AND THOSE THAT GET SUBSIDIES BUT CURBS WILL REMAIN ON INVESTMENT IN AREAS THAT COULD HURT THE ENVIRONMENT OR ARE INCOMPATIBLE WITH NATIONAL CUSTOMS MEANWHILE STARTING MARCH FIRST THE STATE RUN KOREA DEVELOPMENT BANK AND INDUSTRIAL BANK OF KOREA MAY ACCEPT INVESTMENT PROPOSALS FROM FOREIGNERS WHO NOW MUST GO THROUGH THE CENTRAL BANK AND STARTING JULY FIRST OTHER FOREIGN EXCHANGE BANKS WILL BE AUTHORIZED TO PARTICIPATE HUNGARY WILL AUCTION OFF AS MANY AS TWO HUNDRED FIFTY UNPRODUCTIVE OR DILAPIDATED STATE PROPERTIES INCLUDING CASTLES CITY MANSIONS COUNTRY HOMES MILLS INNS AND HUNTING LODGES THE PRIVATIZATION EFFORT ALSO INTENDED TO PRESERVE OR REFURBISH SOME ARCHITECTURALLY DISTINCT PROPERTIES WILL BEGIN IN THE SPRING AFTER THE GOVERNMENT EVALUATES THE ASSETS PRICES COULD RANGE FROM FORTY NINE THOUSAND DOLLARS TO NINE HUNDRED EIGHTY THOUSAND DOLLARS HUNGARIANS WHO MAY USE SPECIAL LOANS AND COMPENSATION COUPONS AWARDED TO VICTIMS OF PROPERTY NATIONALIZATIONS WILL GET PREFERENCE IN THE SELL OFF IF THEY MATCH OFFERS BY FOREIGNERS DEATHS OF JAPANESE MEN FROM LUNG CANCER TOTALED TWENTY THOUSAND THIRTY SIX IN LAST YEAR'S FIRST EIGHT MONTHS SURPASSING STOMACH CANCER DEATHS AT NINETEEN THOUSAND SEVEN HUNDRED SIXTY NINE THE STOMACH DISEASE HAD BEEN THE BIGGEST CAUSE OF CANCER DEATHS FOR THE PREVIOUS FORTY YEARS THE HEALTH AND WELFARE MINISTRY SAID THE NEW TREND WAS CERTAIN TO APPLY FOR THE FULL YEAR IN THE PAST THREE DECADES THE PROPORTION OF MEN'S DEATHS FROM STOMACH CANCER FELL ATTRIBUTED TO EATING LESS SALTY FOODS WHILE LUNG CANCER CASES INCREASED SEVENTY PERCENT OF THEM LINKED TO SMOKING BUT STOMACH CANCER REMAINED THE LEADING CAUSE OF CANCER DEATHS AMONG JAPANESE WOMEN POPE JOHN PAUL THE SECOND CHARACTERIZED TELEVISION AS A MAJOR THREAT TO FAMILY LIFE AND URGED LEGALLY ENFORCEABLE CODES OF ETHICS FOR THE INDUSTRY IN A MESSAGE FOR THE ROMAN CATHOLIC CHURCH'S THIRTY EIGHTH WORLD DAY OF COMMUNICATIONS THE PONTIFF SAID T. V. PROGRAMS GLORIFY SEX AND VIOLENCE RECKLESSLY SPREAD FALSE VALUES AND DISTORT AND MANIPULATE ACCOUNTS OF NEWS EVENTS CRITICIZING THE USE OF T. V. AS QUOTE AN ELECTRONIC BABY SITTER QUOTE HE CHALLENGED PARENTS TO TURN THEIR SETS OFF WHEN APPROPRIATE HE ALSO URGED THEM TO GET TOUGH WITH PRODUCERS ADVERTISERS AND GOVERNMENTS TO FOSTER MORALLY ENRICHING PROGRAMMING TROPICAL TIMBER EXPORTERS SUPPORTED A NEW ACCORD TO PROMOTE FOREST CONSERVATION AFTER RICH COUNTRIES MADE AN UNPRECEDENTED PLEDGE TO APPLY SIMILAR STANDARDS IN THEIR LOGGING INDUSTRIES UNITED NATIONS OFFICIALS IN GENEVA SAID ABOUT FIFTY COUNTRIES ARE TO APPROVE A NEW INTERNATIONAL TROPICAL TIMBER AGREEMENT TOMORROW UNDER THE PACT THAT EXPIRES MARCH THIRTY FIRST EXPORTERS IN THE FAR EAST AFRICA AND LATIN AMERICA EMBRACED CONSERVATION MEASURES IN RETURN FOR REFORESTATION FUNDING FROM WESTERN COUNTRIES BUT THOSE PRODUCERS SAID THE ACCORD PUT THEM AT A MARKET DISADVANTAGE BECAUSE IT IMPOSED FOREST MANAGEMENT STANDARDS ONLY ON THEM VIETNAM'S AGRICULTURAL PRODUCTION LAST YEAR CLIMBED FOURTEEN PERCENT TO FIFTY NINE POINT THREE MILLION DOLLARS FROM A YEAR EARLIER GOVERNMENT RADIO SAID THE REPORT CITED STRIDES BY THE FOOD PROCESSING INDUSTRY WHICH LED OTHER SECTORS WITH AN ELEVEN PERCENT INCREASE IN OUTPUT TO FORTY NINE POINT THREE MILLION DOLLARS AGRICULTURAL TRADE FOR THE YEAR TOTALED THREE HUNDRED FIFTY ONE POINT EIGHT MILLION DOLLARS THE AGRICULTURE AND FOOD INDUSTRY MINISTRY SAID FARM EXPORTS WERE VALUED AT TWO HUNDRED THIRTY FIVE POINT SEVEN MILLION DOLLARS UP SIX POINT ONE PERCENT WHILE IMPORTS DECLINED TEN PERCENT TO ONE HUNDRED SIXTEEN POINT ONE MILLION DOLLARS CITING WIDESPREAD MISUNDERSTANDING ABOUT TAXES THAT TOOK EFFECT JANUARY FIRST THE CHINESE GOVERNMENT IS SENDING OUT A MILLION PEOPLE TO EXPLAIN THE NEW TAX LAWS THE CHIEF OF BEIJING'S TAX AGENCY SAID TAX OFFICIALS AND LOCAL GOVERNMENT AND CIVIC LEADERS WILL HIT THE STREETS TO EDUCATE THE PUBLIC TA KUNG PAO A BEIJING FUNDED NEWSPAPER IN HONG KONG REPORTED THE NEW LEVIES INCLUDING CONSUMPTION AND VALUE ADDED TAXES ARE DESIGNED TO ENLARGE THE CENTRAL GOVERNMENT'S SHARE OF REVENUES AND ADVANCE ITS GOAL OF ADOPTING SOME ASPECTS OF A MARKET ECONOMY MEANWHILE THE BEIJING FUNDED WEN WEI PO NEWSPAPER IN HONG KONG SAID CHINESE MEDIA AND PUBLISHING OFFICIALS GATHERED FOR CHINA'S FIRST NATIONAL PROPAGANDA MEETING SINCE NINETEEN FIFTY SEVEN TO EXAMINE HOW TO PUBLICIZE THE COUNTRY'S MARKET REFORMS THROUGH NEWSPAPERS BROADCASTING PUBLISHING AND THE ARTS TAIWAN'S NINETEEN NINETY THREE UNEMPLOYMENT RATE FELL TO ONE POINT FOUR FIVE PERCENT AN ELEVEN YEAR LOW AS MANY MEN TOOK EARLY RETIREMENT CUTTING THE RATIO OF MALE JOB HOLDERS AMONG THOSE EMPLOYABLE TO A RECORD LOW SEVENTY THREE PERCENT THE BIG BEN CLOCK ATOP BRITAIN'S PARLIAMENT MYSTERIOUSLY STOPPED SUNDAY FOR THREE HOURS FOR THE SECOND TIME IN EIGHT MONTHS LAST MAY AMID EFFORTS TO IDENTIFY THE PROBLEM THE ONE HUNDRED THIRTY FIVE YEAR OLD CLOCK RESTARTED ITSELF TANDY CORPORATION AGREED TO SELL ITS LIKA PRINTED CIRCUIT BOARD MANUFACTURING OPERATIONS IN STOCKTON CALIFORNIA AND SALT LAKE CITY TO INDIA'S EASTERN CIRCUITS LIMITED FOR ABOUT SEVENTEEN MILLION DOLLARS HICKS MUSE AND COMPANY A PRIVATE INVESTMENT FIRM COMPLETED ITS THREE HUNDRED NINETY MILLION DOLLAR ACQUISITION OF G. HEILEMAN BREWING COMPANY A PRIVATELY HELD REGIONAL BREWING COMPANY BASED IN LA CROSSE WISCONSIN COLTEC INDUSTRIES INCORPORATED WILL CLOSE ITS AIRCRAFT LANDING GEAR OVERHAUL PLANT IN BURBANK CALIFORNIA LATER THIS YEAR AND MOVE THE BUSINESS TO A NEW FACILITY IN BURLINGTON ONTARIO THE OPERATIONS WILL BE RENAMED MENASCO AVIATION SERVICES LIMITED AND RUN AS A SUBSIDIARY OF COLTEC CORESTATES FINANCIAL CORPORATION SAID ONE OF ITS QUOTE EDGE ACT QUOTE SUBSIDIARIES PHILADELPHIA INTERNATIONAL INVESTMENT CORPORATION PURCHASED FOURTEEN POINT FIVE PERCENT OF ABERDEEN TRUST P. L. C. A BRITISH INVESTMENT MANAGEMENT COMPANY TERMS WEREN'T DISCLOSED THE FEDERAL EDGE ACT ALLOWS BANKS TO SET UP INTERNATIONAL SUBSIDIARIES NOT SUBJECT TO CERTAIN DOMESTIC BANKING REGULATIONS BY ANY STRETCH OF LOGIC RUSSIA SHOULD PULL OUT OF ITS MISERY THE COUNTRY BOASTS HUGE RESERVES OF NEARLY EVERY RESOURCE ON THE PLANET IT HAS A WELL EDUCATED WORK FORCE AND IT IS DEVELOPING A GO GO YOUNGER GENERATION THAT IS POISED TO CONQUER THE BRAVE NEW CAPITALIST WORLD AND YET EVERY TIME RUSSIA SEEMS TO FACE SMOOTH SAILING SOMETHING UNEXPECTED GOES WRONG SO HOW CAN ANYONE REASONABLY FORECAST THE FUTURE OF THIS UNPREDICTABLE GIANT WHICH STRETCHES ACROSS A STAGGERING ELEVEN TIME ZONES FROM CENTRAL EUROPE TO ALASKA AS A FOREIGN CORRESPONDENT IN MOSCOW I APPRECIATE THE DIFFICULTIES IN THIS CHAOTIC ENVIRONMENT WE'RE GENERALLY REDUCED TO ANALYZING WHETHER YESTERDAY'S DEVELOPMENTS WILL BE REVERSED TODAY IT'S HARD TO THINK ABOUT TOMORROW A PAIR OF AMERICAN POLITICAL ANALYSTS HAVE BRAVELY TAKEN UP THE TASK IN QUOTE RUSSIA TWO THOUSAND TEN AND WHAT IT MEANS FOR THE WORLD QUOTE RANDOM HOUSE TWO HUNDRED SEVENTY SIX PAGES TWENTY THREE DOLLARS DANIEL YERGIN WHO WON THE NINETEEN NINETY TWO PULITZER PRIZE FOR NONFICTION FOR QUOTE THE PRIZE QUOTE AND THANE GUSTAFSON ATTEMPT TO TELL US JUST WHERE RUSSIA MIGHT BE HEADED WISELY THE AUTHORS REFRAIN FROM TRYING TO DIVINE RUSSIA'S EXACT COURSE THEY SPIN A SERIES OF COMPLEX SCENARIOS THAT SEEM EQUALLY LIKELY TO GROW OUT OF THE POST SOVIET MUDDLE INTO WHICH RUSSIA HAS SUNK IN THE AUTHORS' WORDS THEY ARE ATTEMPTING TO WRITE HISTORIES OF THE FUTURE RUSSIA TWO THOUSAND TEN IDENTIFIES FIVE PLAUSIBLE SCENARIOS CONTINUED MUDDLING A MILITARY INDUSTRIAL REASSERTION OF CENTRALIZED POWER A DANGEROUS BREAKDOWN OF ORDER AUTHORITARIANISM AND A CAPITALIST ECONOMIC MIRACLE EACH IS ARGUED COGENTLY AND THE AUTHORS BRING TO THE TASK AN IMPRESSIVE GRASP OF RUSSIA'S HISTORY AND EVEN OF ITS CURRENT SUBTLETIES BUT JUST HOW USEFUL IS ANY OF THIS THE RANGE OF SCENARIOS IS SO BROAD FROM CUDDLY FREE MARKET SUCCESS STORY TO BELLIGERENT MILITARY MACHINE THAT MOST READERS ARE LIKELY TO LOSE THEIR WAY THAT'S ESPECIALLY TRUE IN LIGHT OF THE AUTHORS' CANDID IF SOBERING ADMISSION THAT THE OUTSIDE WORLD CAN DO LITTLE TO AFFECT HOW RUSSIA DEVELOPS WORSE THE BOOK OFTEN LAPSES INTO STILTED AND ANNOYING TERMINOLOGY THE SCENARIOS GET CHILDLIKE MONIKERS SUCH AS MUDDLING DOWN THE LONG GOOD BYE AND THE TWO HEADED EAGLE AND AS THE WHAT IFS BEGIN TO MULTIPLY THE IDEAS SOMETIMES SEEM TO LEAD NOWHERE MUDDLING DOWN IN RUSSIA COINCIDES WITH TWO HEADED EAGLE IN UKRAINE THE AUTHORS WRITE BUT IF UKRAINIAN POLITICS LAPSES INTO MUDDLING DOWN THIS REVIEWER WAS TEMPTED TO ADVANCE TO THE SCENARIO OF THE GREAT CLOSED BOOK BUT QUOTE RUSSIA TWO THOUSAND TEN QUOTE DOES HAVE SOMETHING TO OFFER FIRST THE BOOK'S SNAPSHOT DESCRIPTIONS OF RUSSIAN SOCIETY AND ITS MAJOR ACTORS AND INSTITUTIONS ARE CONCISE AND GENERALLY ON THE MARK AND OCCASIONALLY THE AUTHORS WHO DESCRIBE THEMSELVES AS CAUTIOUSLY OPTIMISTIC ARE WILLING TO GO OUT ON A SHORT LIMB TO MAKE A FEW SOLID PREDICTIONS FOR WHERE RUSSIA WILL BE SIXTEEN YEARS FROM NOW MOST IMPORTANTLY THEY ARGUE THE COUNTRY WILL CONTINUE TO DEVELOP IN THE DIRECTION OF CAPITALISM RUSSIA STYLE DESPITE INEVITABLE SETBACKS ALONG THE WAY THE GENIE WON'T SLIP BACK INTO THE BOTTLE MESSRS YERGIN AND GUSTAFSON ALSO ARE PROBABLY ON THE MARK IN IDENTIFYING RUSSIA'S BIGGEST DANGER CONFLICT WITH UKRAINE IT IS HERE THAT THE SCENARIO SPINNING SEEMS MOST USEFUL THEY FORECAST A POSSIBLE CLASH FOUR YEARS FROM NOW MAYBE SOONER AS A DISMAL ECONOMY PROMPTS THE LARGELY RUSSIAN POPULATED PROVINCES OF EASTERN UKRAINE TO SECEDE SPARKING AN AGGRESSIVE NATIONALIST BACKLASH IN KIEV IT'S A STARK REMINDER TO THE WEST TO DO WHATEVER IT CAN TO KEEP THE TWO COUNTRIES FROM STARTING A CONFLICT THAT COULD ENGULF MUCH OF CENTRAL EUROPE SOME OF THE AUTHORS' ADVICE ALSO IS WORTH PONDERING AMONG THE SOUNDEST AND MOST CONTROVERSIAL OBSERVATIONS IF RUSSIA IS TO BE A PARTNER WITH THE WEST THEN RUSSIA WILL HAVE TO BECOME A MEMBER OF THE CLUB THE WEST CAN'T SIMPLY WAIT FOR SIGNS OF GOOD BEHAVIOR BEFORE IT OFFERS A REWARD NO PROUD PEOPLE THE AUTHORS WRITE WILL TOLERATE BEING MADE TO WAIT AT THE DOOR AS THE RUSSIANS ARE BEING ASKED TO WAIT TODAY FOR FOREIGN INVESTORS TOO THERE ARE USEFUL INSIGHTS NO MATTER HOW WIDELY RUSSIA OPENS TO THE OUTSIDE WORLD THE AUTHORS ARGUE IT WILL ALWAYS BE AMBIVALENT TOWARD FOREIGN CAPITAL THEY ADVISE POTENTIAL INVESTORS TO ENTER THE MARKET GRADUALLY GET THEIR C. E. O.S PERSONALLY INVOLVED FIND A SOLID LOCAL PARTNER AND BE WILLING TO SETTLE FOR LESS THAN TOTAL EQUITY CONTROL FOR ALL THEIR ATTEMPTED PRESCIENCE HOWEVER THE AUTHORS OMIT SEVERAL CRITICAL QUESTIONS MOST OBVIOUSLY THEY FAIL TO DISCUSS THE COMPLICATED FUTURE OF THE NORTH ATLANTIC TREATY ORGANIZATION RUSSIA'S PERCEPTION OF THE THREAT FROM AN EXPANDED NATO COULD GO A LONG WAY TOWARD DETERMINING THE NATION'S FOREIGN POLICY AND ITS SENSE OF SELF NEVERTHELESS THE AUTHORS MUST ALREADY BE BASKING IN THE GLOW OF PARTLY FULFILLED SCENARIOS RUSSIA'S PARLIAMENTARY ELECTIONS IN DECEMBER WHICH TOOK PLACE AFTER PUBLICATION FOLLOWED THE SCRIPT OF THE MUDDLING DOWN SCENARIO FERTILE GROUND FOR RUSSIA'S NATIONALISTS AND NEO FASCISTS COME TWO THOUSAND TEN IT'S A SAFE BET THAT MESSRS YERGIN AND GUSTAFSON WILL POINT TO A FEW OTHER SELECTED PASSAGES TO SHOW THAT THEY SAW IT ALL COMING MR. IGNATIUS THE JOURNAL'S MOSCOW BUREAU CHIEF PREDICTS THAT BY TWO THOUSAND TEN HE WILL BE LIVING IN RUSSIA NOT LIVING IN RUSSIA OR SOMETHING ELSE ENTIRELY STEINHARDT MANAGEMENT COMPANY MOVED A STEP CLOSER TO GAINING CONTROL OF INTEGRATED RESOURCES INCORPORATED BY REACHING AN AGREEMENT WITH SENIOR CREDITORS OF THE FORMER TAX SHELTER COMPANY INTEGRATED RESOURCES ONCE ONE OF THE LARGEST SYNDICATORS OF LIMITED PARTNERSHIPS IN THE NINETEEN EIGHTIES HAS BEEN OPERATING UNDER CHAPTER ELEVEN OF THE FEDERAL BANKRUPTCY CODE FOR FOUR YEARS PRIVATELY HELD STEINHARDT MANAGEMENT IS AN AFFILIATE OF A NEW YORK BASED HEDGE FUND RUN BY MICHAEL STEINHARDT IT HAS BEEN AFTER INTEGRATED RESOURCES FOR TWO YEARS IN ALLIANCE WITH SUBORDINATED CREDITORS AND LAWYERS REPRESENTING INDIVIDUALS IN THE LIMITED PARTNERSHIPS UNDER THE STEINHARDT PLAN SENIOR CREDITORS WITH CLAIMS OF ONE POINT TWO BILLION DOLLARS WILL RECEIVE FIFTY FIVE CENTS ON THE DOLLAR IN CASH AND STOCK OF THE NEW COMPANY ALTHOUGH STEINHARDT SAYS THE DISTRIBUTION COULD BE VALUED AT AS MUCH AS NINETY SIX CENTS ON THE DOLLAR IF THE CASH IS REINVESTED IN MORE STOCK SUBORDINATED BONDHOLDERS WHO ARE OWED SIX HUNDRED SIXTY EIGHT MILLION DOLLARS WILL RECEIVE A CASH DISTRIBUTION OF THREE CENTS ON THE DOLLAR OF CLAIMS WITH THE RIGHT TO BUY NEW INTEGRATED STOCK STEINHARDT MANAGEMENT WILL CONTROL TWELVE PERCENT OF THE COMPANY'S NEW STOCK REPRESENTATIVES OF THE CREDITORS' COMMITTEES VOICED THEIR SUPPORT IN A CONFERENCE CALL LAST THURSDAY WITH FEDERAL BANKRUPTCY JUDGE CORNELIUS BLACKSHEAR IN THE SOUTHERN DISTRICT OF NEW YORK REPRESENTATIVES OF INTEGRATED RESOURCES WHICH HAS A COMPETING PLAN BEFORE CREDITORS COULD NOT BE REACHED DESPITE REPEATED CALLS CORNING INCORPORATED SWUNG TO A LOSS IN THE FOURTH QUARTER PRIMARILY BECAUSE OF A CHARGE RELATED TO BREAST IMPLANT LITIGATION AT DOW CORNING CORPORATION CORNING POSTED A LOSS OF ONE HUNDRED TWENTY POINT NINE MILLION DOLLARS OR SIXTY FOUR CENTS A SHARE INCLUDING A TWO HUNDRED THREE MILLION DOLLAR CHARGE CORNING SAID THE CHARGE IS BEING TAKEN IN EXPECTATION OF A GLOBAL SETTLEMENT OF SUITS BROUGHT BY BREAST IMPLANT PATIENTS CORNING AND DOW CHEMICAL COMPANY ARE FIFTY TO FIFTY OWNERS OF DOW CORNING IN THE YEAR AGO QUARTER CORNING EARNED FORTY ONE POINT TWO MILLION DOLLARS OR TWENTY ONE CENTS A SHARE INCLUDING A GAIN OF THREE CENTS A SHARE FROM A TAX LOSS CARRY FOWARD AND ACCOUNTING AND SPECIAL CHARGES TOTALING ONE DOLLAR AND SEVENTY EIGHT CENTS A SHARE REVENUE ROSE NINE PERCENT TO ONE POINT OH NINE BILLION DOLLARS FROM ONE BILLION DOLLARS A YEAR AGO EXCLUDING THE SPECIAL CHARGE WHICH AMOUNTS TO ONE DOLLAR AND SIX CENTS A SHARE CORNING HAD EARNINGS OF EIGHTY TWO POINT TWO MILLION DOLLARS OR FORTY TWO CENTS A SHARE IN THE LATEST QUARTER COMPARED WITH YEAR AGO OPERATING PROFIT OF SEVENTY NINE POINT NINE MILLION DOLLARS OR FORTY TWO CENTS A SHARE CORNING SAID THE NEARLY FLAT OPERATING RESULTS REFLECT DIFFICULTIES IN ITS CONSUMER PRODUCTS UNIT WHICH IT IS RESTRUCTURING AS WELL AS PRICING PRESSURES IN ITS OPTICAL FIBER AND CABLE AND CLINICAL TESTING UNITS CORNING'S CONSUMER PRODUCTS BUSINESS WHICH MAKES CORNING WARE REVERE WARE AND CORELLE DINNER WARE AMONG OTHER BRANDS HAS BEEN HURT BY THE RECESSION IN MEXICO WHERE IT HAS LARGE OPERATIONS AND BY THE WEAK ECONOMIES IN EUROPE QUOTE MY GUESS IS IF THEY DON'T GET RESULTS IN A YEAR THEY MIGHT SELL THE BUSINESS QUOTE SAID KIMBERLY E. RITRIEVI AN ANALYST WITH PAINEWEBBER A CORNING SPOKESMAN SAID THAT'S A SPECULATIVE COMMENT WE ARE WORKING TO IMPROVE THE BUSINESS ANALYSTS NOTED THAT THE FOURTH QUARTER RESULTS INCLUDED A GAIN OF ABOUT TWO CENTS A SHARE FOR A TAX BENEFIT RELATED TO CORNING'S VITRO CORNING S. A. JOINT VENTURE WHICH IS BEING DISMANTLED THEY ALSO SAID CORNING'S EFFECTIVE TAX RATE WAS TWENTY SIX PERCENT IN THE QUARTER DOWN FROM TWENTY EIGHT PERCENT A YEAR AGO IF YOU NORMALIZE THE TAX RATE YOU'RE LOOKING AT THIRTY EIGHT CENTS OR THIRTY NINE CENTS A SHARE ON AN OPERATING BASIS SAID B. ALEX HENDERSON AN ANALYST WITH PRUDENTIAL SECURITIES IT'S CERTAINLY DOWN FROM A YEAR AGO NEVERTHELESS THE RESULTS WERE GENERALLY IN LINE WITH ANALYSTS' EXPECTATIONS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CORNING FELL TWENTY FIVE CENTS TO THIRTY ONE POINT ONE TWO FIVE DOLLARS FOR THE YEAR CORNING POSTED A LOSS OF FIFTEEN POINT TWO MILLION DOLLARS OR NINE CENTS A SHARE INCLUDING THE BREAST IMPLANT RELATED CHARGE AS WELL AS A CHARGE FOR ACCOUNTING CHANGES THAT COMPARES WITH A YEAR AGO LOSS OF TWELVE POINT SIX MILLION DOLLARS OR EIGHT CENTS A SHARE INCLUDING A GAIN OF FOUR CENTS A SHARE FOR TAX LOSS CARRY FOWARD AND ACCOUNTING AND SPECIAL CHARGES TOTALING ONE DOLLAR AND SEVENTY EIGHT CENTS A SHARE ANALYSTS SAID THE COMPANY APPEARS COMFORTABLE WITH ESTIMATES OF ONE DOLLAR AND SEVENTY FIVE CENTS TO ONE DOLLAR AND EIGHTY CENTS A SHARE FOR NINETEEN NINETY FOUR MENTION WALT DISNEY IN THE SAME BREATH WITH INSECTS AND MOST PEOPLE THINK OF JIMINY CRICKET BUT WIZARDS AT THE MAGIC KINGDOM HAVE EMBARKED ON A NEW ADVENTURE IN ENTOMOLOGY TOGETHER WITH THE UNIVERSITY OF CALIFORNIA THEY'RE WAGING AN ECOLOGICAL TURF WAR AGAINST AN AUSTRALIAN INSECT THAT HITCHHIKED TO CALIFORNIA SCIENTISTS RECRUITED THE PEST'S NATURAL ENEMY A TINY WASP THE SIZE OF A GRAIN OF PEPPER AS A BIOLOGICAL ALTERNATIVE TO CHEMICAL PESTICIDES ALTHOUGH IT SOUNDS LIKE AN INVENTION OF NEW AGE ECOLOGISTS BIOLOGICAL CONTROL IS AN ANCIENT PRACTICE IN A. D. THREE HUNDRED THE CHINESE DEPLOYED ANTS TO KILL PESTS THREATENING MANDARIN ORANGES CALIFORNIA CITRUS GROWERS ADOPTED THE TECHNIQUE A CENTURY AGO BY IMPORTING VIDALIA BEETLES A KIN OF LADYBUGS TO CURB SCALE INFESTING THE GROVES THIS TIME THE PEST IS THE EUGENIA PSYLLID PRONOUNCED SILL ID AN APHID LIKE CREATURE THAT DINES AND LAYS ITS EGGS ON THE LUSH LEAVES OF THE EUGENIA TREE EUGENIA ANOTHER IMPORT FROM DOWN UNDER LOVES THE TEMPERATE CLIMATE OF COASTAL CALIFORNIA THUS IT HAS BEEN PRIZED AS BORDER SHRUBS AND TREES FOR DECADES BY GARDENERS FROM SAN DIEGO TO THE SAN FRANCISCO BAY AMONG OTHER WEST COAST REGIONS A FEW FLORIDA NURSERIES ALSO BEGAN SELLING EUGENIA BUT THE PLANT'S INTOLERANCE OF HEAT AND COLD HAVE KEPT IT FROM BEING WIDELY ADOPTED IN THIS COUNTRY DISNEYLAND'S GARDENERS LOVED EUGENIA PLANTING ABOUT TWO THOUSAND FOUR HUNDRED LINEAR FEET OF IT AS HEDGES AND PRUNING STILL MORE OF THE TREES INTO TOPIARY SCULPTURES OF MICKEY MOUSE PLUTO AND OTHER CARTOON CHARACTERS THEY LITTLE SUSPECTED THE PARK'S PRISTINE GARDENS WOULD BECOME JUICY FODDER FOR AN ALIEN BUG ENTER THE STOWAWAY PSYLLIDS IN THE LATE NINETEEN EIGHTIES PROBABLY IN A TOURIST'S SUITCASE OR IN THE HOLD OF A COMMERCIAL JETLINER ONCE HERE THE VORACIOUS BUGS SAVAGED EUGENIA BLISTERING LEAVES AND STUNTING GROWTH SAYS DOCTOR DONALD L. DAHLSTEN PROFESSOR OF BIOLOGICAL CONTROL AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY QUOTE THE PSYLLID LARVAE SIT RIGHT DOWN IN A PIT FORMED BY SUCKING ON THE LEAVES' UNDERSIDE QUOTE HE SAYS THE BUGS ALSO EXCRETE A SUGAR LADEN WASTE THAT NOURISHES THE GROWTH OF SOOTY MOLD CAKING LEAVES WITH BLACKISH DUST SAYS DOCTOR DAHLSTEN YOU HAVE A MESS CALIFORNIANS SPRAYED PESTICIDES AND GARDEN SOAPS AT THE INFESTATION BUT THE BUGS BREED FASTER THAN CHEMICALS CAN KILL THEM NOW YOU CAN'T FIND A SINGLE EUGENIA IN THE STATE WITHOUT THEM HE SAYS MILLIONS HAVE BEEN SPENT TRYING TO GET RID OF THE PEST DISNEY OFFICIALS IN NINETEEN NINETY ONE CALLED DOCTOR DAHLSTEN FOR HELP AS IT HAPPENED THE PROFESSOR WAS PACKING FOR A SABBATICAL IN AUSTRALIA ONCE THERE HE VISITED A RAIN FOREST OUTSIDE SYDNEY THE ABORIGINAL HOME OF THE EUGENIA WHERE HE COMBED THE FOLIAGE TO FIND THE PSYLLIDS' NATURAL ENEMY HIS QUEST WAS REWARDED HEALTHY EUGENIA FLOURISHED THERE ODDLY HE ALSO FOUND DEAD PSYLLID LARVAE ALL BEARING HOLES PUNCHED BY A TINY STINGERLESS WASP THAT MINIWASP NAMED TAMARIXIA MEASURES JUST ONE POINT FIVE M. M. OR HALF THE LENGTH OF ITS PREY BUT BY INSERTING ITS OVIPOSITOR THROUGH THE BODY OF THE PSYLLID LARVA AND DEPOSITING ITS EGGS UNDER IT THE WASP EFFECTIVELY KILLS ITS ENEMY AND SAVES THE EUGENIA NEXT CAME RED TAPE AND QUARANTINE THE HARDEST PART WAS GETTING PERMISSION TO SHIP WASPS OUT OF AUSTRALIA DOCTOR DAHLSTEN SAYS UNDER LAWS REGULATING EXPORT OF EXOTIC FAUNA HE WAITED A MONTH FOR PERMISSION FROM AUSTRALIAN PARKS AND AGRICULTURE CHIEFS TRANSPORT SECURITY WAS TIGHT EGG BEARING LEAVES WERE ENCASED IN GELATIN CAPSULES LIKE THOSE USED BY DRUGGISTS BOXED DOUBLE BAGGED ENTOMBED IN MAILING TUBES THE WASP EGGS BOARDED COMMERCIAL JETLINERS BOUND FOR SAN FRANCISCO ONCE THE WASPS LANDED THERE U. S. DEPARTMENT OF AGRICULTURE OFFICIALS PLACED THEM UNDER QUARANTINE AT DOCTOR DAHLSTEN'S EXPERIMENTAL AGRICULTURAL STATION NEAR THE BERKELEY CAMPUS THERE THEY HATCHED MATED FED ON EUGENIA PSYLLIDS AND WAITED ANOTHER SIX MONTHS FOR A GREEN LIGHT FROM THE U. S. D. A. AND COUNTY OFFICIALS ALL THIS WAS NECESSARY SO DOCTOR DAHLSTEN COULD CONVINCE OFFICIALS THAT THE WASPS WOULDN'T RAVAGE OTHER PLANTS OR INSECTS LUCKILY THE WASPS ONLY EAT PSYLLIDS THIS THING IS A SPECIALIST HE SAYS PROUDLY FROM HIS OFFICE FESTOONED WITH BIRD AND BUG MOBILES THE RUGGED SILVER HAIRED SCIENTIST RECENTLY TOOK A REPORTER FOR A PEEK AT HIS OUTDOOR LAB AN EXPERIMENTAL GREENHOUSE THERE HE SHOOK A BRANCH OF HEALTHY EUGENIA TO DISLODGE THE BUGS QUOTE THEY'RE HARD TO CATCH TODAY BECAUSE OF THE COLD QUOTE HE GRUMBLES TAPPING THE BOUGH HE CUPS HIS HAND TO CATCH A PALE WINGED FLY AND A FEW BLACK FLECKS LOOKING LIKE GROUND PEPPER THE CRITTERS SCUTTLE UNDER A MICROSCOPE SEE HERE'S THE PSYLLID AND HERE ARE THE WASPS HE SAYS EXPLAINING THE ONCE BLIGHTED BUSH BEARS HEALTHY NEW LEAVES BECAUSE THE TWO BUGS NOW LIVE IN BALANCE IN JULY NINETEEN NINETY TWO A HANDFUL OF WASPS SEVENTY EIGHT FEMALES AND TWENTY FIVE MALES WERE UNLEASHED AT DISNEYLAND EVERY THREE OR FOUR WEEKS DOCTOR DAHLSTEN VISITS THE PARK FOR A CENSUS REPORT ON PREDATOR AND PREY AT DISNEYLAND THERE'S BEEN A NINETY PERCENT REDUCTION IN THE PSYLLID POPULATION AND A DEFINITE IMPROVEMENT IN THE FOLIAGE HE SAYS WE'RE NOT DECLARING SUCCESS JUST YET WE'RE ONLY IN THE MIDST OF THE SECOND YEAR OF THE TEST WE'RE BEING CAUTIOUS BECAUSE BIOLOGICAL CONTROLS TAKE THREE TO FIVE YEARS PROJECT SPONSOR WALT DISNEY IMAGINEERING A PART OF WALT DISNEY COMPANY CONFIRMS THE IMMIGRANT HAS ADAPTED WELL TO ITS NEW HOME THE TAMARIXIA WASPS SPREAD AROUND THE PARK IN TWO MONTHS THEY SEEM TO BE PROLIFIC WHICH IS OUR GOOD FORTUNE QUOTE SAYS DISNEY ECOLOGIST DONALD KENT WE HAVEN'T HAD TO USE PESTICIDES SINCE MAY NINETEEN NINETY TWO AND THE PLANTS LOOK BETTER WITH A HAPPY ENDING IN SIGHT AT THE MAGIC KINGDOM SCIENTISTS INTRODUCED THE WASPS IN MAY NINETEEN NINETY THREE AT THE SAN DIEGO ZOO THERE EUGENIA ARE USED FOR BOTH DECORATIVE LANDSCAPING AND MONKEY FORAGE RULING OUT ALL PESTICIDES WE REALLY HAD SOME UGLY TREES BUT THEIR APPEARANCE HAS IMPROVED DRAMATICALLY SAYS ZOO ARBORIST DANNY SIMPSON THIS SPRING DOCTOR DAHLSTEN MAY EXTEND TAMARIXIA'S ROAD SHOW INTO SAN FRANCISCO AND MARIN COUNTY UNSURPRISINGLY THE LITTLE WASP IS DRAWING ATTENTION OF BIOLOGICAL CONTROL COMPANIES RINCON VITOBA INSECTARIES INCORPORATED OF VENTURA CALIFORNIA WANTS TO COMMERCIALIZE TAMARIXIA BUT THE BUG'S NATURAL SUCCESS POSES A PARADOX FOR WOULD BE MARKETERS ONCE THESE THINGS MOVE AROUND ON THEIR OWN THERE WON'T BE A MARKET FOR ANYBODY SAYS DOCTOR DAHLSTEN OF COURSE A BUG THAT DISTRIBUTES ITSELF HE ADDS IS THE IDEAL BIOLOGICAL AGENT FUTURES PRICES OF NATURAL GAS AND FUELS SURGED YESTERDAY ON EXPECTATIONS OF SIGNIFICANT REDUCTIONS IN SUPPLIES BECAUSE OF THIS WINTER'S SHARPLY HIGHER DEMAND ALSO NEWS OF WEEKEND FIRES THAT DISRUPTED OPERATIONS AT THE BIG WHITING INDIANA REFINERY OF AMOCO CORPORATION CONTRIBUTED TO THE PRICE RALLY SEVERAL MAJOR UNITS OF THE REFINERY HAD TO BE SHUT DOWN AND AMOCO SAID IT IS ALLOCATING SUPPLIES TO WHOLESALERS THE COMPANY SAID IT EXPECTS THE AFFECTED UNITS TO BE PUT BACK INTO OPERATION GRADUALLY OVER THE NEXT SEVERAL WEEKS MUCH OF THE U. S. HAD RELATIVELY MILD WEATHER YESTERDAY AFTER LAST WEEK'S RECORD COLD BUT THERE WERE FORECASTS THAT ANOTHER ARCTIC BLAST MAY BE ON THE WAY AND THERE WERE SIGNS THAT TODAY'S INDUSTRY REPORT ON U. S. OIL STATISTICS WILL SHOW A MAJOR SHRINKING IN FUELS INVENTORIES AS A RESULT OF LAST WEEK'S FRIGID WEATHER IN HEAVY TRADING ON THE NEW YORK MERCANTILE EXCHANGE THE FUTURES PRICE OF NATURAL GAS FOR FEBRUARY DELIVERY JUMPED SIXTEEN POINT FIVE CENTS TO SETTLE AT TWO DOLLARS AND FORTY SEVEN CENTS A MILLION BRITISH THERMAL UNITS ALTHOUGH TRADERS ATTRIBUTED MUCH OF THE VOLATILITY TO YESTERDAY'S EXPIRATION OF THE FEBRUARY CONTRACT GAS FOR MARCH DELIVERY ALSO WAS SHARPLY HIGHER RISING SEVEN POINT SEVEN CENTS TO TWO POINT TWO EIGHT THREE DOLLARS A MILLION B. T. U.S ALSO TRADED HEAVILY HEATING OIL FOR FEBRUARY DELIVERY ROSE ONE POINT THREE SIX CENTS TO SETTLE AT FORTY NINE POINT THREE NINE CENTS A GALLON THE MARCH HEATING OIL CONTRACT WAS UP ZERO POINT EIGHT SEVEN CENT TO FORTY SEVEN POINT THREE FIVE CENTS A GALLON THE JUMPS IN PRICES OF FUELS PUSHED CRUDE OIL HIGHER IN BOTH NEW YORK AND LONDON FUTURES MARKETS ERASING THE LOSSES IN YESTERDAY'S EARLY TRADING IN NEW YORK THE MARCH CRUDE CONTRACT SETTLED AT FIFTEEN DOLLARS AND SEVENTEEN CENTS A BARREL UP TWENTY THREE CENTS FOR THE DAY DESPITE YESTERDAY'S RALLY SOME TRADERS STILL REMAINED BEARISH ON THE OUTLOOK FOR PETROLEUM PRICES QUOTE THERE HAS BEEN NO MAJOR CHANGE IN THE FUNDAMENTALS QUOTE SAID SHANNON BURCHETT AN ENERGY FUTURES EXPERT WITH CHASE MANHATTAN BANK GENERALLY IT IS STILL A DOWNTRENDING MARKET PRECIOUS METALS GOLD FUTURES PRICES FELL ON HEAVY SELLING OF GOLD BY JAPANESE DEALERS AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS DOWN THIRTY CENTS TO THREE HUNDRED EIGHTY ONE DOLLARS AND FORTY CENTS AN OUNCE THE DECLINE WAS MAINLY RELATED TO JAPANESE SELLING WHICH FOLLOWED A BIG DROP IN JAPAN'S NIKKEI STOCK MARKET IN ANOTHER MARKET DEVELOPMENT TRADERS AND ANALYSTS EXPRESSED SKEPTICISM ABOUT RECENT NEWS REPORTS ASSERTING THAT ONE THOUSAND TWO HUNDRED FORTY TONS OF GOLD STASHED AWAY BY FORMER PHILIPPINE PRESIDENT FERDINAND MARCOS HAD BEEN FOUND IN A SWISS WAREHOUSE THE REPORT WAS MADE LAST WEEK IN BRITAIN'S MANCHESTER GUARDIAN NEWSPAPER AND ON A BRITISH TELEVISION STATION ANALYSTS SAID THE REPORT EXERTED SOME DOWNWARD PRESSURE ON GOLD FUTURES PRICES LAST THURSDAY BUT THIS WEEK MOST MARKET PROFESSIONALS ARE OPENLY DUBIOUS ABOUT IT I THINK IT'S A NONEVENT SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH IT'S A VERY NEBULOUS STORY AND I DON'T SEE IT AS BEING A CONTINUING MARKET FACTOR I HAVEN'T SEEN ONE OUNCE OF GOLD BEING SOLD BY ANY SWISS BANK RELATED TO THIS SO CALLED MARCOS GOLD SEPARATELY A BULLION TRADER SAID THE QUANTITY OF GOLD SUPPOSEDLY STASHED BY MARCOS WOULD BE EQUAL TO PHILIPPINE PRODUCTION OF GOLD FOR FORTY YEARS IT IS HIGHLY UNLIKELY THIS TRADER SAID THAT MR. MARCOS COULD HAVE SECRETED AWAY NEARLY THAT MUCH GOLD GRAINS AND SOYBEANS GRAIN FUTURES PRICES SETTLED HIGHER AFTER A TOPSY TURVY DAY OF TRADING AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR MARCH DELIVERY WERE UP FOUR POINT FIVE CENTS TO SIX DOLLARS AND NINETY EIGHT CENTS A BUSHEL WHILE CORN FOR MARCH DELIVERY CLIMBED TWO POINT SEVEN FIVE CENTS TO THREE POINT OH OH FIVE DOLLARS A BUSHEL EARLY YESTERDAY REPORTS OF BENEFICIAL RAIN IN SOYBEAN GROWING REGIONS OF ARGENTINA AND BRAZIL DEPRESSED FUTURES PRICES LATER HOWEVER TRADERS BID PRICES HIGHER ON EXPECTATIONS OF STRONG DEMAND FOR SOYBEAN OIL AND OTHER SOY PRODUCTS SAID DANIEL W. BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE COMPANY CHICAGO ALSO SUPPORTING THE MARKET WAS AN ABSENCE OF SELLING BY FARMERS LAST WEEK'S SHARP PRICE DECLINE IN THE C. B. O. T.'S GRAIN MARKET HAS PUT MANY FARMERS ON THE SIDELINES MR. BASSE SAID AWAITING HIGHER PRICES BEFORE CHOOSING TO SELL THEIR GRAIN NATIONAL CAR RENTAL SLASH INTERRENT A CAR RENTAL CONCERN OWNED BY GENERAL MOTORS CORPORATION SAID PRESIDENT AND CHIEF OPERATING OFFICER ROBERT J. MCKENNA WILL LEAVE THE COMPANY AT THE END OF JANUARY MR. MCKENNA FIFTY SIX YEARS OLD SAID IN AN INTERVIEW THAT LEAVING WAS HIS IDEA AND HE DIDN'T RULE OUT PARTICIPATING IN A FUTURE EFFORT TO BUY NATIONAL CAR WHICH G. M. IS TRYING TO SELL JAY ALIX A SOUTHFIELD MICHIGAN CONSULTANT HIRED BY G. M. TO BE NATIONAL'S QUOTE CHIEF TURNAROUND OFFICER QUOTE SAID IN A STATEMENT ANNOUNCING MR. MCKENNA'S DEPARTURE THAT NATIONAL IS NOW QUOTE BACK ON ITS FEET QUOTE FINANCIALLY MR. MCKENNA SAID NATIONAL WAS PROFITABLE IN NINETEEN NINETY THREE WELFARE REFORM IS MOVING TO THE FRONT BURNER AT THE WHITE HOUSE SCRAPPING PLANS TO COAST ON WELFARE UNTIL HEALTH CARE LEGISLATION TAKES SHAPE OFFICIALS HAVE DECIDED THAT PRESIDENT CLINTON'S WELFARE OVERHAUL PROPOSAL MUST REACH CONGRESS AS QUICKLY AS POSSIBLE MAYBE AS EARLY AS LATE FEBRUARY THE FIRE WAS LIT ADMINISTRATION OFFICIALS SAY BY IMPATIENCE VOICED DURING THE PAST FEW WEEKS BY SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN WHO WILL HELP SHAPE DEBATE ON BOTH ISSUES AND THREATENED TO HOLD HEALTH CARE QUOTE HOSTAGE QUOTE IF WELFARE WERE DELAYED COMMENTS BY THE NEW YORK DEMOCRAT IN A UNIQUE ROLE AS BOTH A LEADING SCHOLAR AND THE KEY SENATE POWER BROKER ON WELFARE PUT THE FEAR OF GOD INTO THE WHITE HOUSE SAID ONE MEMBER OF MR. CLINTON'S THIRTY TWO MEMBER INTER AGENCY WORK GROUP THAT WILL PROPOSE REFORMS TO THE PRESIDENT THEY DIDN'T WANT TO LOSE THE LEAD ON THIS ISSUE WHITE HOUSE AIDES SAID MR. CLINTON WILL EMPHASIZE THE NEED FOR CHANGING THE WELFARE SYSTEM IN HIS STATE OF THE UNION ADDRESS TONIGHT A SPEECH THAT ALSO WILL STAMP HIS DOMESTIC FOCUS FIRMLY ON HEALTH CARE ANTICRIME AND WORKER RETRAINING PROGRAMS BRUCE REED THE WHITE HOUSE DEPUTY POLICY DIRECTOR OVERSEEING THE WELFARE EFFORT SAID THAT NO TIMETABLE HAS BEEN SET FOR MOVING THE PROPOSAL TO CONGRESS BUT ADDS AMERICANS SEE THAT HEALTH CARE AND WELFARE SYSTEMS ARE BOTH IN A CRISIS AND WE NEED TO MOVE QUICKLY TO REFORM BOTH SYSTEMS AT THE SAME TIME UNTIL RECENTLY THE WHITE HOUSE PLANNED TO DELAY ITS WELFARE PROPOSAL FOR FEAR THAT IT WOULD COMPETE FOR MEDIA ATTENTION WITH HEALTH CARE REFORM AS WELL AS CLUTTER THE LEGISLATIVE CALENDAR ON CAPITOL HILL BOTH ISSUES WILL BE CONSIDERED BY THE SAME SENATE AND HOUSE COMMITTEES EVEN BEFORE SENATOR MOYNIHAN'S COMMENTS WHITE HOUSE AIDES EMPHASIZE MR. CLINTON WAS QUIETLY SHIFTING HIS STANCE RESPONDING TO MEMOS WRITTEN IN LATE DECEMBER BY TOP STAFF AND OUTSIDE FRIENDS RECOMMENDING WHAT ISSUES HE NEEDS TO FOCUS ON THIS YEAR AND HIGHLIGHT IN HIS SPEECH TONIGHT ESPECIALLY COMPELLING SAID ADVISERS WERE ARGUMENTS MADE BY MR. REED AND ANOTHER POLICY ADVISER WILLIAM GALSTON WHO STRESSED THAT THE CENTRAL GOAL OF HEALTH CARE REFORM MUST BE COMPLEMENTED BY OTHER SOCIAL ISSUES SUCH AS CRIME AND WELFARE REFORM TO BE ON BEAT WITH THE PULSE OF THE AMERICAN PEOPLE MR. CLINTON IS WINNING KUDOS FOR NOT MAKING AN ISSUE OUT OF SENATOR MOYNIHAN'S REBELLION AND SIMPLY RESPONDING WITH ACTION IT IS SMART TO DO THIS SAID TONY COELHO THE FORMER DEMOCRATIC HOUSE WHIP IT TAKES CARE OF CONVINCING THE AMERICAN PEOPLE THAT HE IS A VEHICLE FOR CHANGE AND IT IS POLITICALLY SHREWD IT HANDLES THE CONGRESS WELL QUOTE WHILE THE HEART OF THE PLAN IS TO PUT A TWO YEAR LIMIT ON BENEFITS AND PROVIDE EDUCATION AND TRAINING SO WELFARE RECIPIENTS RETURN TO THE WORK FORCE MR. CLINTON MUST QUICKLY MAKE A HOST OF DELICATE DECISIONS SUCH AS HOW TO PAY FOR IT HOW QUICKLY TO PHASE IN THE NEW PLAN AND HOW TO SHAPE A JOBS PROGRAM THE PRESIDENT SAID AIDES MAY BEGIN MAKING THOSE DECISIONS NEXT WEEK AL FROM THE PRESIDENT OF THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL BELIEVES THAT THE PRESIDENT'S SHIFT TO HIGH GEAR ON WELFARE COULD CREATE PROBLEMS FOR REPUBLICANS WHO HAVE LONG WIELDED SOCIAL ISSUES SUCH AS CRIME AND WELFARE TO WIN PRESIDENTIAL ELECTIONS CONGRESSIONAL REPUBLICANS DISAGREE THEY SAY THAT TOUGH MEDICINE ON WELFARE REFORM WILL ALIENATE PRECISELY THE POLITICAL BLOC THAT MR. CLINTON NEEDS FOR HEALTH CARE BLACK AND LIBERAL DEMOCRATS PRESIDENT CLINTON TONIGHT ALSO WILL URGE CONGRESS TO PASS LEGISLATION DESIGNED TO COMBAT CRIME PARTICULARLY PROVISIONS THAT WOULD PUT ONE HUNDRED THOUSAND POLICE OFFICERS ON THE BEAT AND PROVIDE BOOT CAMPS AS AN ALTERNATIVE TO PRISON FOR NONVIOLENT OFFENDERS HE ALSO FAVORS LIFE IMPRISONMENT FOR THOSE CONVICTED OF THREE VIOLENT OFFENSES THE HOUSE AND SENATE PASSED DIFFERING MEASURES TO FIGHT CRIME LATE LAST YEAR THE HOUSE WILL HOLD HEARINGS ON A NUMBER OF THE PENALTY PROVISIONS IN THE SENATE'S LEGISLATION THAT HAVEN'T BEEN CONSIDERED BY THE HOUSE ADMINISTRATION OFFICIALS WILL URGE CONGRESS TO KILL OR MODIFY SOME PROVISIONS IN THE SENATE PASSED CRIME BILL THAT WOULD FEDERALIZE WHAT ARE NOW STATE CRIMES THEY WILL ARGUE FOR EXAMPLE THAT A MEASURE SPONSORED BY SENATOR ALFONSE D'AMATO R. N. Y. TO FEDERALIZE VIOLENT CRIMES COMMITTED WITH A HANDGUN WOULD OVERLOAD THE FEDERAL CRIMINAL JUSTICE SYSTEM JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE ARTHUR LEVITT CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION SAID ALLEGATIONS OF A VARIETY OF WRONGS IN THE MUNICIPAL BOND MARKET MAKE QUOTE IT CLEAR TO ME THAT WE NEED A STRONG ENFORCEMENT PRESENCE TO ENHANCE INVESTOR CONFIDENCE QUOTE IN A SPEECH YESTERDAY AT A BOND CONFERENCE IN NEW YORK MR. LEVITT CALLED FOR A STATE OF THE ART SURVEILLANCE SYSTEM TO HELP EXPOSE CORRUPTION AND ABUSE IN THE MUNICIPAL BOND MARKET HE DIDN'T OFFER ANY DETAILS ABOUT THE SURVEILLANCE SYSTEM OTHER THAN TO SAY IT MAY BE EXPENSIVE OTHER SUCH SYSTEMS OVERSEEN BY THE AGENCY INVOLVE EXTENSIVE RECORDKEEPING BY MARKET PARTICIPANTS IN ADDITION TO DELIVERING THE VEILED THREAT OF ENFORCEMENT ACTIONS MR. LEVITT REITERATED THE S. E. C.'S INTENTION TO SHED MORE LIGHT ON MUNICIPAL BOND TRANSACTIONS FROM THE SELECTION OF UNDERWRITERS TO THE SALE OF SECURITIES IN THE SECONDARY MARKET WHEN ACCURATE INFORMATION ON MARKET PRICING IS HARD TO COME BY THE POTENTIAL FOR FRAUD AND ABUSE IS MUCH GREATER HE SAID WE BELIEVE THAT GREATER TRANSPARENCY IN THE TRADING OF THE FIFTY MOST ACTIVE ISSUES WOULD PROVIDE PUBLICLY AVAILABLE PRICING INFORMATION ON BENCHMARK SECURITIES MR. LEVITT SUGGESTED THAT MARKET PARTICIPANTS CONSIDER AN ELECTRONIC REPORTING SYSTEM SIMILAR TO THAT ACTIVATED LAST YEAR FOR THE MOST ACTIVE JUNK BONDS THE S. E. C. CHAIRMAN ALSO STRONGLY URGED MUNICIPAL BOND ISSUERS TO AWARD BOND BUSINESS IN A COMPETITIVE BIDDING PROCESS RATHER THAN BY NEGOTIATING WITH A SINGLE UNDERWRITER NOTING THAT SEVENTY FIVE PERCENT OF THE DOLLAR VOLUME OF LONG TERM BOND OFFERINGS ARE NEGOTIATED OFFERINGS HE CALLED ON ISSUERS WHO ARE EXEMPT FROM S. E. C. REGULATION AND FILING REQUIREMENTS TO BE MORE MINDFUL OF THE PUBLIC TRUST ISSUERS DETERMINE WHAT THE OFFERING PARTICIPANTS WILL BE PAID BY CONTROLLING BOND ALLOCATIONS AND PRIORITY PROVISIONS AND BY CAPPING FEES MR. LEVITT SAID QUOTE IDEALLY ISSUERS USE THEIR EXPANDED CONTROL IN THE PUBLIC INTEREST THE DANGER OF COURSE IS THAT THIS CONTROL COULD ALSO BE USED TO DISPENSE POLITICAL PATRONAGE TODAY I CALL ON EVERY ISSUER TO EVALUATE CAREFULLY WHETHER ITS ACTIONS SERVE A PUBLIC PURPOSE SEPARATELY MR. LEVITT ESTABLISHED A CONSUMER AFFAIRS ADVISORY COMMITTEE TO APPRISE THE S. E. C. OF ISSUES AFFECTING INDIVIDUAL INVESTORS THE S. E. C. SAID THE COMMITTEE'S MEMBERS AS YET TO BE APPOINTED WILL INCLUDE REPRESENTATIVES OF CONSUMER OR INVESTOR ORGANIZATIONS SECURITIES MARKET PARTICIPANTS AND PROFESSIONALS REGULATORY ENTITIES AND THE PUBLIC ROBERT L. JOHNSON WAS ELECTED A DIRECTOR OF THE GAMING AND HOSPITALITY CONCERN SUCCEEDING JOHN V. GIOVENCO FIFTY SEVEN YEARS OLD WHO RESIGNED LAST YEAR MR. JOHNSON FORTY SEVEN IS CHAIRMAN OF BET HOLDINGS INCORPORATED PARENT COMPANY OF BLACK ENTERTAINMENT TELEVISION YES THE JAPANESE UPPER HOUSE'S REJECTION OF POLITICAL REFORM IS A BLOW TO THE YOUNGISH TURKS WHO GOT IT THAT FAR BUT IT ISN'T OVER 'TIL IT'S OVER WE DON'T THINK IT'S OVER THE ROTATION OF PRIME MINISTERS IS PROBABLY GOING TO CONTINUE UNTIL A GENUINE EFFORT IS MADE TO CLEAN UP NAGATACHO FOR ONE THING REGARDLESS OF FRIDAY'S VOTE THE BREAKUP OF THE PARTY SYSTEM IS PROCEEDING APACE THE LIBERAL DEMOCRATS AND THE SOCIAL DEMOCRATS BOTH HAVE A LOT TO LOSE THE L. D. P. HAS BEEN HEMORRHAGING MEMBERS SINCE THE BIG JULY CRACKUP AND THE S. D. P. CAN'T SURVIVE ITS INTERNAL CONTRADICTIONS MUCH LONGER SECOND THE LONG RECESSION IS FORCING MANY OF THOSE ONCE CLOSELY ASSOCIATED WITH THE NOTION OF JAPAN INCORPORATED TO RETHINK THE WAY THE ECONOMY FUNCTIONS THE ECONOMY HAS SLUMPED FOR MOST OF THE NINETIES AND ALL THE USUAL CURES HAVE FAILED THE ECONOMIC PLANNING AGENCY SAYS RECOVERY MAY NOT OCCUR UNTIL MID NINETEEN NINETY FIVE NOR GIVEN INTERNATIONAL POLITICAL CONSTRAINTS CAN JAPAN EXPORT ITS WAY OUT OF RECESSION THE ONLY OPTION AS EVEN THE MANDARINS AT THE MINISTRY OF FINANCE NOW GRUDGINGLY AGREE IS FOR DOMESTIC CONSUMPTION TO LIFT JAPAN OUT OF THE DOLDRUMS TO DO SO REQUIRES TAX CUTS AND DEREGULATION WE DOUBT THAT THE OLD POLITICAL SYSTEM IS UP TO THIS ANOTHER REASON TO BELIEVE THAT REFORM ISN'T DEAD IS THAT THE MOST TRENCHANT ANALYSIS OF THE JAPANESE POLITICAL SYSTEM HAS COME FROM PEOPLE WHO KNOW EVERY CRANNY OF THE SYSTEM AND HAVE DECIDED IT'S ROTTEN WE ARE THINKING HERE OF FORMER L. D. P. LOYALISTS LIKE ICHIRO OZAWA TSUTOMU HATA AND KAZUO AICHI SOME HAVE LIKENED MR. OZAWA'S POSITION ON REFORM TO HAVING A FOX GUARD THE HENHOUSE WE WOULD NOTE THAT THINKING LIKE A FOX MAKES IT POSSIBLE TO BUILD A MORE SECURE HENHOUSE PRIME MINISTER HOSOKAWA AND HIS ASSOCIATES DESERVE GREAT CREDIT FOR GETTING THIS CLOSE THE PRIME MINISTER HAS DONE SOMETHING UNUSUAL IN THE DIET ENUNCIATED A PRINCIPLE AND STUCK TO IT EVEN IF HE IS TOSSED OUT HE HAS LEFT A DISTINCTIVE LEGACY WE DON'T THINK ANY PREVIOUS JAPANESE GOVERNMENT COULD HAVE OPENED ALBEIT MARGINALLY THE HALLOWED RICE MARKET MR. HOSOKAWA DID AN ACTION SO STRIKING IN ITS SYMBOLISM THAT SOME JAPANESE REFER TO IT AS THE QUOTE THIRD OPENING QUOTE AFTER THE NINETEENTH CENTURY MEIJI RESTORATION AND THE POSTWAR ECONOMIC MIRACLE IN ITS UNFAMILIAR ROLE AS POLITICAL OPPOSITION THE LIBERAL DEMOCRATIC PARTY PLAYED THE LARGEST PART IN KILLING THIS LEGISLATION WITH AN ABLE ASSIST FROM S. D. P. DEFECTORS HAVING RUN THIS EFFORT OFF THE RAILS WE'D SAY THE L. D. P. NOW HAS A RESPONSIBILITY TO GET THE PROCESS BACK ON TRACK PERHAPS BY WORKING OUT COMPROMISE LEGISLATION WITH THE HOSOKAWA COALITION BEFORE THE DIET GOES HOME JANUARY TWENTY NINTH PERHAPS THE BEST COURSE IS FOR THE JAPANESE TO HOLD THE L. D. P. TO ITS OWN WORDS OF NINETEEN EIGHTY NINE OF COURSE IT IS NOT SO EASY TO REFORM THE LONG PRESERVED SYSTEM BUT IN ORDER TO RECOVER THE PEOPLE'S CONFIDENCE IN POLITICS IT IS TIME FOR THE PARTY TO DISPLAY MORALITY AND A SENSE OF RESPONSIBILITY OF POLITICIANS TYSON FOODS INCORPORATED THE NATION'S BIGGEST POULTRY COMPANY MADE AN UNSOLICITED BID TO ACQUIRE W. L. R. FOODS INCORPORATED A CHICKEN AND TURKEY PROCESSOR FOR THIRTY DOLLARS A SHARE OR THREE HUNDRED TWENTY NINE MILLION DOLLARS THE BID WHICH TYSON ANNOUNCED AFTER THE NASDAQ STOCK MARKET CLOSED YESTERDAY REPRESENTS A FIFTY SEVEN PERCENT PREMIUM OVER THE NINETEEN DOLLARS CLOSING FOR W. L. R.'S STOCK IN A LETTER TO W. L. R.'S BOARD TYSON'S CHAIRMAN DON TYSON SAID THE SPRINGDALE ARKANSAS CHICKEN COMPANY WOULD PREFER AN ALL CASH DEAL BUT WOULD CONSIDER NEGOTIATING A STOCK AND CASH TRANSACTION W. L. R. BASED IN HINTON VIRGINIA ISSUED A STATEMENT LAST NIGHT SAYING ITS BOARD WOULD EVALUATE THE TYSON PROPOSAL BUT THE STATEMENT ADDED THAT THE DIRECTORS BELIEVE QUOTE THAT THE LONG TERM BEST INTERESTS OF W. L. R. AND ITS SHAREHOLDERS WOULD BE BEST SERVED BY W. L. R. REMAINING INDEPENDENT QUOTE JOHN FLORA W. L. R.'S COUNSEL SAID HE COULDN'T ELABORATE ON THE STATEMENT IN HIS LETTER TO W. L. R.'S BOARD MR. TYSON ASKED FOR AN ANSWER BY FEBRUARY FOURTH AFTER WHICH HE SAID THE ACQUISITION PROPOSAL WOULD EXPIRE THE LETTER INDICATED THAT TYSON WAS GOING PUBLIC WITH ITS OFFER ONLY AFTER BEING REBUFFED IN AN ATTEMPT TO MEET WITH W. L. R.'S BOARD TYSON DOESN'T TAKE NO FOR AN ANSWER VERY EASILY SAID NAPOLEON OVERTON AN ANALYST AT MORGAN KEEGAN CITING THE COMPANY'S SUCCESSFUL BATTLE TO ACQUIRE RIVAL HOLLY FARMS CORPORATION FOR ONE POINT TWO NINE BILLION DOLLARS IN NINETEEN EIGHTY NINE AN ACQUISITION OF W. L. R. BY TYSON WOULD SHARPLY ACCELERATE TYSON'S ALREADY AMBITIOUS EXPANSION THIS MONTH THE COMPANY WHICH ALSO HAS INTERESTS IN BEEF PORK AND SEAFOOD SAID IT WILL BUILD FOUR CHICKEN PROCESSING PLANTS COMBINED WITH SOME MOVES ANNOUNCED LAST YEAR TYSON'S INTERNAL EXPANSION PLANS ALONE WILL COST ABOUT FOUR HUNDRED MILLION DOLLARS AND INCREASE ITS CHICKEN PROCESSING CAPACITY BY THIRTY PERCENT TYSON'S ANNOUNCEMENT YESTERDAY DIDN'T SAY HOW IT WOULD FINANCE AN ACQUISITION OF W. L. R. TYSON OFFICIALS COULDN'T BE REACHED FOR COMMENT LAST NIGHT W. L. R. IS THE NATION'S EIGHTH LARGEST POULTRY PROCESSOR AND ONE OF THE TOP THREE U. S. TURKEY PROCESSORS ACCORDING TO TYSON LIKE ITS SUITOR W. L. R. SELLS FRESH FROZEN AND COOKED CHICKEN AND TURKEY PRODUCTS TO RETAIL OUTLETS RESTAURANTS AND OTHER INSTITUTIONAL CUSTOMERS IN FISCAL NINETEEN NINETY THREE ENDED JULY THIRD W. L. R. EARNED FOURTEEN POINT SIX MILLION DOLLARS ON SALES OF SIX HUNDRED SIXTEEN POINT SEVEN MILLION DOLLARS IN ITS FISCAL YEAR ENDED OCTOBER SECOND TYSON EARNED ONE HUNDRED EIGHTY POINT THREE MILLION DOLLARS ON SALES OF FOUR POINT SEVEN BILLION DOLLARS QUOTE I TAKE MORE INTEREST THAN MANY AUTHORS IN THE PHYSICAL BOOK QUOTE JOHN UPDIKE SAID FROM THE PASSENGER SEAT ON THIS DAY MR. UPDIKE'S INTEREST WAS TAKING HIM TO SCRANTON PENNSYLVANIA IN A RENTED PONTIAC BONNEVILLE WE WERE ON A FIELD TRIP TO HADDON CRAFTSMEN THE BOOK MANUFACTURER THAT HAS MADE MR. UPDIKE'S BOOKS SINCE NINETEEN SIXTY NINE TO WATCH HIS NEW NOVEL BRAZIL AN INTERRACIAL LOVE STORY WITH A STRANGE TWIST ROLL OFF THE PRODUCTION LINE THE ROAD TRIP HAD THE FEEL OF AN UPDIKE STORY IN FACT THE AUTHOR HAS DEVOTED MUCH INK TO HIS FASCINATION WITH PRINT THE PAPERY SELF MAGNIFICATION AND IMMORTALITY OF PRINTED REPRODUCTION WAS CENTRAL TO MY ARTISTIC IMPULSE HE DECLARED IN HIS MEMOIR SELF CONSCIOUSNESS THE IDEA OF WRITING A NOVEL CAME EVEN LATER AND PRESENTED ITSELF TO ME AND STILL DOES AS MAKING A BOOK BUT UNTIL NOW HE HAD NEVER SEEN ONE OF HIS BOOKS BEING MADE MR. UPDIKE WAS DRESSED FOR THE BIG DAY LIKE AN IVY LEAGUE PROFESSOR IN A TRILBY HAT TWEED JACKET AND A GREEN WOOL SCARF WITH A PIECE OF PRICE TAG STILL STAPLED TO IT HE GREW UP IN PENNSYLVANIA IN THE SMALL TOWN OF SHILLINGTON OUTSIDE READING AND SEEMED TICKLED TO BE RETURNING TO HIS OLD TURF WHEN HE WASN'T DELIVERING A RUNNING COMMENTARY ON THE SCENERY THIS IS A MIRTHLESS HIGHWAY HE RECALLED THE SEDUCTIVE ALLURE OF HINTZ'S A READING STATIONERY STORE WHERE THE ROMANCE OF OFFICE EQUIPMENT PAPER GOT TO ME AND HIS EARLY DREAM OF BECOMING A CARTOONIST QUOTE MY MOTHER KEPT ALL THESE THINGS SOUVENIRS OF MY BOYHOOD PRINT INFATUATION I FOUND THEM WHEN SHE DIED HE SAID I WAS TRYING TO BECOME A NEW YORKER CARTOONIST AND THERE WERE BOOKS TELLING YOU HOW TO DO IT RUBBER STAMPS THAT YOU'D USE TO STAMP YOUR DRAWINGS ROUGHS AND ACTUAL INKED DRAWINGS HE STRUCK OUT WITH THE NEW YORKER BUT THE CHATTERBOX HIS HIGH SCHOOL NEWSPAPER PUBLISHED HIS DRAWINGS AND STORIES LATER ON AS A COPY BOY FOR THE READING EAGLE HE WAS FASCINATED BY THE WORKINGS OF THE LINOTYPE MACHINE I WOULD SEE THEM TURNING WORDS INTO METAL HE SAID IT WAS A ROMANTIC TYPE OF INDUSTRIALIZATION THE TALL MACHINE THE CLATTER OF THE MATRICES FALLING INTO IT MEN WITH GREEN EYE SHADES SITTING THERE HE GAVE HIS MOST FAMOUS CREATION RABBIT ANGSTROM A JOB AS A LINOTYPER IN BREWER PENNSYLVANIA IN RABBIT REDUX THE SECOND NOVEL IN HIS RABBIT TETRALOGY ALTHOUGH LINOTYPING BECOMES OBSOLETE DURING THE COURSE OF THAT NOVEL AND RABBIT LOSES HIS JOB ALL FOUR QUOTE RABBIT QUOTE BOOKS INCLUDING THE NINETEEN NINETY QUOTE RABBIT AT REST QUOTE WERE SET BY LINOTYPE THE GESTURE WASN'T LOST ON MR. UPDIKE WHO IS FAMOUS IN THE KNOPF PRODUCTION DEPARTMENT FOR FUSSING OVER THE LOOK OF HIS BOOKS YOU MAY NOT BE ABLE TO JUDGE AN UPDIKE BOOK BY ITS COVER BUT YOU CAN SPOT ONE IN A MINUTE IT'S USUALLY ABOUT FIVE AND ONE QUARTER INCHES WIDE BY EIGHT INCHES HIGH WITH SOME VARIATIONS AND HAS SILVER AND GOLD FOIL STAMPING ON THE SPINE THE TEXT IS SET IN JANSON TYPE THAT'S THE DESIGN THAT WAS CREATED FOR MR. UPDIKE'S FIRST NOVEL THE POORHOUSE FAIR NINETEEN FIFTY NINE AND HE HAS STUCK TO IT EVER SINCE FOR ONE THING CHANGING IT WOULD SPOIL THE AESTHETICS OF HIS HOME LIBRARY I HAVE MY BOOKS NAKED NAKED SPINES LINED UP HE EXPLAINED THE TITLES ARE ALL STAMPED AT THE SAME HEIGHT ON THE SPINES EXCEPT FOR THE SLIMMER BOOKS OF POETRY WHICH ARE STAMPED LENGTHWISE AND FORM A NEAT LINE ACROSS HIS BOOKSHELF IT WAS QUITE EXQUISITE WHEN THERE WERE FIVE NOW THERE ARE ABOUT FORTY HE SIGHED HADDON CRAFTSMEN WHICH WAS RECENTLY ACQUIRED BY PRINTING GIANT R. R. DONNELLEY AND SONS COMPANY IS ONE OF THE OLDEST BOOK MANUFACTURERS IN THE COUNTRY THE BINDERY IS IN A NINETEEN OH ONE FACTORY BUILDING WITH WOOD FLOORS HIGH CEILINGS AND A STAINED GLASS WINDOW SHOWING SCIENCE INSTRUCTING INDUSTRY OVER A SERVE YOURSELF LUNCH OF CHICKEN AND PASTA SALAD A GROUP OF HADDON CRAFTSPEOPLE PRESENTED MR. UPDIKE WITH A PEN STAND MADE OF PENNSYLVANIA COAL AND AN OVERSIZE COAL BELT BUCKLE QUOTE FOR YOUR LEISURE TIME QUOTE THEN DON VISPI A BEEFY GUY IN A STARCHED WHITE SHIRT WHO LOOKED AS IF HE MIGHT HAVE BEEN A CHARACTER IN THE RABBIT SERIES BUT IS IN FACT HADDON'S SENIOR VICE PRESIDENT EXPLAINED WHAT GOES INTO MAKING AN UPDIKE BOOK WE BURST THROUGH THE SPINE IT'S CALLED BURST BINDING SEE THAT JOHN SAID MR. VISPI SHOWING OFF A REAM OF COVERLESS PAGES WHICH ARE PUNCTURED OR BURST IN ABOUT SEVEN PLACES ALONG THE SPINE TO ADMIT THE GLUE THAT BINDS THEM TOGETHER HE ENCOURAGED MR. UPDIKE TO ASK HIS WORKERS QUESTIONS THEY KNOW ALL YOUR BOOKS THEY'VE DONE THEM ALL THEN IT WAS ONTO THE NOISY FACTORY FLOOR WHERE A MACHINE WAS BINDING SIGNATURES THE TERM FOR GATHERED PAGES SLICKING THE SPINES WITH VISCID WHITE PRIMER GLUE AND FERRYING THEM OVER GLOWING GASHEAT DRYERS A SET OF METAL CHOPPERS TRIMMED THE BOUND PAGES TO THE APPROPRIATE LENGTH AND SENT THEM ON TO A MAN WITH A SPRAY GUN LOADED WITH YELLOW GREEN VEGETABLE DYE MR. UPDIKE WATCHED AS THE MAN SPRITZED THE TOPS OF COPY AFTER COPY OF BRAZIL WITH THE DYE TOPSTAINING THE PAGES THEN HIS EYE WANDERED TO THE SHELVES FILLED WITH SPOOLS OF HEADBANDS CLOTH RIBBONS USED TO LINE A BOOK'S BINDING UPDIKE BOOKS DON'T HAVE HEADBANDS QUOTE EVERYBODY HERE GETS HEADBANDS BUT YOU QUOTE SAID TRACY CABANIS KNOPF'S SENIOR PRODUCTION MANAGER I DON'T MIND HEADBANDS I THINK THEY'RE NICE HE SAID A LITTLE LONGINGLY I ALWAYS THOUGHT IT SAVED MONEY TOO LATE NOW COPIES OF BRAZIL WERE ALREADY BEING FITTED INTO THEIR YELLOW CLOTH CASES OR COVERS WITHOUT HEADBANDS STACKS OF EMPTY YELLOW CASES ALMOST AS TALL AS MR. UPDIKE HIMSELF WAITED DOWN IN THE FACTORY BASEMENT A MACHINE WAS IMPRESSING THE CASES WITH THE KNOPF BORZOI COLOPHON AND STAMPING THEM WITH THE TITLE AND AUTHOR'S NAME IN GOLD AND SILVER FOIL TRANSFERRED FROM SHINY RIBBONS AS GAUDY AS CHRISTMAS WRAP I CAN HAVE THIS REALLY MR. UPDIKE ASKED AS A WORKER HANDED HIM A NEWLY STAMPED CASE BACK UPSTAIRS STILL CLUTCHING THE EMPTY CASE AND A FRAGMENT OF USED GOLD STAMPING FOIL HE WATCHED AS QUOTE BRAZIL QUOTE TEXTS WERE MARRIED TO THEIR YELLOW CASES WITH GLUE THEN THE BOOKS WERE PASSED ON TO A GIZMO THAT FLIPPED THE COVERS OPEN WITH SPATULALIKE TONGS AND SLIPPED THE JACKETS ON A CONVEYOR BELT BORE THE FINISHED BOOKS TO TWO WORKERS WHO WERE BUNDLING THEM INTO CARTONS MR. UPDIKE PICKED UP A COPY OF BRAZIL FROM THE BELT IT WAS AS WARM AS A FRESHLY LAID EGG IT SEEMS A LOT OF TROUBLE DOESN'T IT HE MURMURED LOOKING FAINTLY APPALLED AT THE SIGHT OF SCORES OF HIS BOOKS BEING CHURNED OUT LIKE FIG NEWTONS AS IF THAT WEREN'T ENOUGH A YOUNG WOMAN FROM THE COUNTY COMMISSIONERS' OFFICE ARRIVED BEARING A PLAQUE AND THE NEWS THAT TODAY HAD BEEN PROCLAIMED JOHN UPDIKE DAY IN LACKAWANNA COUNTY I'VE NEVER HAD A DAY BEFORE HE SAID DO I GET FREE DRINKS IN ALL THE BARS NO BUT HE DID GET TO SIGN TWO STACKS OF BRAND NEW COPIES OF BRAZIL FOR VARIOUS HADDON AND DONNELLEY EXECUTIVES A TASK HE GREETED WITH THE SAME UNFLAPPABLE GOOD HUMOR HE HAD SHOWN ALL DAY BUT WHEN MR. UPDIKE GOT BACK IN THE PONTIAC LUGGING HIS COAL BELT BUCKLE HIS PEN STAND HIS EMPTY CASE HIS USED FOIL RIBBON HIS JOHN UPDIKE DAY PLAQUE AND HIS OWN COPY OF QUOTE BRAZIL QUOTE IT WAS CLEAR THAT THE ROMANCE OF BOOK MAKING HAD BEEN SOMEWHAT TARNISHED BY HIS ENCOUNTER WITH THE REAL THING IT'S SLIGHTLY MIND ANNIHILATING ISN'T IT HE SAID AS WE BEGAN THE THREE HOUR DRIVE BACK TO NEW YORK HE PAUSED IT'S FAINTLY APPALLING TO SEE YOUR EFFORTS MULTIPLYING NOT JUST ONE JACKET SHINING BUT OODLES AND OODLES AND HE WAS HAVING SECOND THOUGHTS ABOUT THE COLOR OF HIS CASES IT DID SEEM A POISONOUS YELLOW HE MURMURED TO MS. CABANIS A FEW DAYS LATER WHEN WE SPOKE ON THE PHONE MR. UPDIKE WAS FEELING BETTER ABOUT HIS CASES THE YELLOW WHICH I WAS AMAZED AND KIND OF DISGUSTED BY LOOKS GOOD IN THE ROW HE SAID REFERRING TO THE ROW OF UPDIKE BOOKS IN HIS BOOKCASE FLIPPING THE FRESHLY MINTED BOOK OPEN HOWEVER MADE HIM TURN GREEN I'VE FOUND A TYPO HE SAID PRESIDENT CLINTON NOMINATED DEPUTY DEFENSE SECRETARY WILLIAM PERRY TO MOVE UP TO THE TOP SLOT AT THE PENTAGON BUT STILL FACES DEEP DOUBTS ABOUT THE STRENGTH OF THE ADMINISTRATION'S NATIONAL SECURITY TEAM BOBBY INMAN PROPOSED HAVING MR. PERRY REPLACE HIM AS THE NOMINEE FOR DEFENSE SECRETARY LAST WEEK WHEN MR. INMAN WITHDREW HIS OWN NOMINATION PEOPLE FAMILIAR WITH THE SITUATION SAID MR. INMAN TOLD WHITE HOUSE AIDES THAT HIS VIEWS WERE LARGELY THE SAME AS MR. PERRY'S AND THAT THE BIGGEST DIFFERENCE BETWEEN THE TWO WAS THAT THE DEPUTY DEFENSE SECRETARY POSSESSED FAR MORE PATIENCE THAN HE QUOTE BILL PERRY IS A REAL PRO YOU CAN DEPEND ON HIM QUOTE PRESIDENT CLINTON SAID YESTERDAY IN ANNOUNCING THE NOMINATION AT THE WHITE HOUSE MR. PERRY SIXTY SIX YEARS OLD IS A MATHEMATICIAN AND MILITARY TECHNOLOGIST WHOM SENATOR SAM NUNN D. GEORGIA CHAIRMAN OF THE SENATE ARMED SERVICES COMMITTEE HAS CALLED THE FATHER OF STEALTH TECHNOLOGY MR. PERRY WHO IS HELD IN HIGH REGARD ON CAPITOL HILL FOR THE CLARITY AND PRECISION OF HIS TESTIMONY IS EXPECTED TO WIN SENATE CONFIRMATION EASILY SENATOR DAN COATS ONE OF THE MOST CONSERVATIVE MEMBERS OF THE ARMED SERVICES PANEL SAID YESTERDAY THAT MR. PERRY IS WELL LIKED AND WELL RESPECTED HIS ONLY CONCERN THE INDIANA REPUBLICAN ADDED IS THAT THE NUMBER ONE JOB REQUIRES COMPLETELY DIFFERENT SKILLS YOU NEED TO BE A POLITICAL OPERATOR A BUDGET BATTLER SOMEONE WHO CAN SIT DOWN WITH WORLD LEADERS BUT IN HIS YEAR IN THE PENTAGON'S NUMBER TWO SLOT MR. PERRY HAS SEEN MORE OF THE WORLD THAN MOST DEFENSE DEPUTIES PARTLY BECAUSE HE HAS PINCH HIT WHEN HEALTH PROBLEMS PREVENTED DEFENSE SECRETARY LES ASPIN FROM TAKING SCHEDULED TRIPS ABROAD THE PRESIDENT SAID YESTERDAY THAT MR. PERRY PLAYED AN IMPORTANT ROLE IN THE RECENT BREAKTHROUGH TO ELIMINATE UKRAINE'S NUCLEAR WEAPONS ROBERT GATES THE FORMER DIRECTOR OF CENTRAL INTELLIGENCE SAID YESTERDAY THAT MR. PERRY QUOTE HAS A VERY CLEARHEADED VIEW OF THE WORLD QUOTE BUT MR. PERRY HAS LEFT LITTLE PUBLIC RECORD OF HIS VIEWS ON A BROAD RANGE OF FOREIGN POLICY ISSUES EVEN THOUGH HE HAS LONG PARTICIPATED IN FOREIGN POLICY DISCUSSIONS AT THINK TANKS MR. PERRY CAN BE FORCEFUL BUT HIS GENERALLY LOW KEY EVEN BLAND MANNER IS SIMILAR TO THAT OF SECRETARY OF STATE WARREN CHRISTOPHER AND NATIONAL SECURITY ADVISER ANTHONY LAKE BECAUSE OF HIS RELATIVE LACK OF FOREIGN POLICY EXPERIENCE MR. PERRY'S NOMINATION DOESN'T APPEAR TO BRING A STRONG NEW VOICE TO A NATIONAL SECURITY TEAM THAT CRITICS HAVE SAID NEEDS BOLSTERING BUT IN DEMOCRATIC POLITICAL CIRCLES A CONSENSUS IS GROWING THAT MR. CLINTON HAS ANOTHER MAJOR FOREIGN POLICY PROBLEM MR. LAKE MANY DEMOCRATS BELIEVE THAT MR. LAKE HASN'T PROVIDED THE VISION COORDINATION OR HIGH PUBLIC PROFILE THAT MR. CLINTON NEEDS MR. CLINTON HAS INVESTED LITTLE OF HIS OWN PRESTIGE IN FOREIGN POLICY AND THE REST OF THE TEAM IS FILLED WITH BLAND MANAGEMENT TYPES SUCH AS MR. CHRISTOPHER AT THE STATE DEPARTMENT AND NOW MR. PERRY AT THE PENTAGON MR. CLINTON HAS TAKEN SMALL STEPS TO ADDRESS THE PROBLEMS VICE PRESIDENT AL GORE PLAYS A LARGER ROLE AS SPOKESMAN ON FOREIGN POLICY AND STROBE TALBOTT IS MOVING INTO THE NUMBER TWO SPOT AT THE STATE DEPARTMENT TO HELP FILL A VOID THERE BUT DEMOCRATS ARE CONCERNED WHETHER THAT WILL BE ENOUGH PARTICULARLY SINCE THEY NOW EXPECT THE REPUBLICANS TO HIT THE ADMINISTRATION HARD ON NATIONAL SECURITY ISSUES WHILE MR. CLINTON IS DOING WELL ON DOMESTIC ISSUES EVEN THE UNVEILING OF MR. PERRY WAS LOW KEY INSTEAD OF A GRAND ROSE GARDEN CEREMONY LIKE THE ONE HELD FOR MR. INMAN THE DEFENSE SECRETARY WAS INTRODUCED TO A SMALL GROUP OF REPORTERS AND MR. CLINTON GREW TESTY WHEN HE WAS ASKED WHAT MR. PERRY BROUGHT TO THE JOB THAT MR. ASPIN DIDN'T PROVIDE I DON'T THINK THE TWO THINGS ARE RELATED MR. CLINTON SAID MR. PERRY'S VIEWS ARE STRONGEST ON THE NEED FOR AN ACTIVIST POLICY TO HELP THE DEFENSE INDUSTRY STAY HEALTHY WHILE IT SHRINKS AN AREA THAT APPEARS TO BE HIS FIRST LOVE INDEED IN HIS WHITE HOUSE COMMENTS YESTERDAY HE SAID WE READ ABOUT THE PROBLEMS EVERY DAY IN MOGADISHU SARAJEVO PYONGYANG BUT WE MUST NOT LOSE SIGHT OF THE OPPORTUNITIES IN THIS NEW POST SOVIET WORLD BUT THE SPECIFIC OPPORTUNITY HE THEN OFFERED AS AN EXAMPLE WASN'T A GLOBAL VISION OF SAY EXPANDING DEMOCRACY OR FREE MARKET CAPITALISM BUT INSTEAD OF REFORMING THE PENTAGON'S SYSTEM OF BUYING WEAPONS AND OTHER GOODS MR. PERRY WHO SERVED AS THE PENTAGON'S ACQUISITION CZAR DURING THE CARTER YEARS HAS EXPRESSED A KIND OF TOUGH LOVE APPROACH TO THE DEFENSE INDUSTRY HE HAS SHOWN SYMPATHY FOR BELEAGUERED DEFENSE CONTRACTORS BUT HAS REPEATEDLY EMPHASIZED THAT HE DOESN'T INTEND TO SUBSIDIZE COMPANIES TO KEEP THEM ALIVE EITHER DIRECTLY BY GIVING THEM CONTRACTS OR INDIRECTLY BY ALLOWING THEM TO EXPORT HIGH TECHNOLOGY WEAPONS DISTURBED FOR EXAMPLE BY A NEWSPAPER ARTICLE LAST SEPTEMBER THAT ASSERTED THE PENTAGON'S NEW DEFENSE INDUSTRIAL POLICY WAS PARTLY A JOBS PROGRAM HE TOLD A GROUP OF REPORTERS THAT NOTHING IN THIS PLAN PRESERVES JOBS AT THE PENTAGON OVER THE LAST YEAR MR. PERRY HAS PUSHED A TWO PRONGED APPROACH FOR HIS DEFENSE INDUSTRIAL POLICY THIS APPROACH DISTINGUISHES POTENTIAL DUALUSE MANUFACTURERS FROM DEFENSE UNIQUE CONCERNS UNDER THIS APPROACH MOST OF THE DEFENSE INDUSTRY IS ENCOURAGED TO INTEGRATE ITSELF INTO THE BROAD COMMERCIAL SECTOR AND GO QUOTE DUAL USE QUOTE SERVING THE PENTAGON AS WELL AS CONSUMER AND INDUSTRIAL MARKETS MR. PERRY HAS SAID HE IS ESPECIALLY INTERESTED IN SEEING DUAL USE PRODUCTION IN FOUR MAIN INDUSTRIAL AREAS SEMICONDUCTORS COMPUTERS TELECOMMUNICATIONS AND ADVANCED MATERIALS ONLY A SMALL RUMP OF THE DEFENSE INDUSTRY THE PART THAT MAKES NUCLEAR SUBMARINES TANKS AND OTHER PRODUCTS THAT HAVE NO COMMERCIAL APPLICATION IS CONSIDERED ELIGIBLE FOR SUBSIDIZATION AS PART OF MR. ASPIN'S BOTTOM UP REVIEW OF HOW TO RESHAPE THE U. S. MILITARY TO FIT THE POST COLD WAR WORLD THE PENTAGON IN SEPTEMBER TOOK THE FIRST STEP IN MAKING THIS POLICY EXPLICIT SAYING IT WOULD ASK GENERAL DYNAMICS CORPORATION'S ELECTRIC BOAT UNIT TO BUILD ANOTHER SEAWOLF ATTACK SUBMARINE NOT BECAUSE THE SUB IS NEEDED BUT TO KEEP ALIVE THE CAPABILITY OF BUILDING SUBMARINES BECAUSE MR. ASPIN APPEARS TO HAVE DEFERRED TO MR. PERRY ON QUESTIONS OF DEFENSE INDUSTRIAL POLICY IN THE PAST YEAR MAJOR CHANGES IN THIS AREA AREN'T LIKELY BUT IN THE COMING YEARS MR. PERRY MAY BE INCLINED TO SHIFT PENTAGON SPENDING AWAY SOMEWHAT FROM PROCUREMENT AND MORE TOWARD RESEARCH AND DEVELOPMENT WHATEVER ELSE WE DO IN CUTTING THE DEFENSE BUDGET HE SAID IN AN OCTOBER SPEECH WE SHOULD MAINTAIN OUR TECHNOLOGY BASE TO DO THAT HE QUICKLY WENT ON TO SAY THE PROCUREMENT BUDGET THE MONEY THAT ACTUALLY GOES TO BUYING THINGS WOULD HAVE TO BE CUT EVEN MORE I WOULD ESTIMATE THAT THE PROCUREMENT BUDGET WILL GO DOWN ABOUT SIXTY PERCENT BETWEEN NINETEEN EIGHTY SIX AND NINETEEN NINETY SIX HE SAID THEREFORE THERE'S GOING TO BE EVEN MORE CONSOLIDATION IN THE DEFENSE INDUSTRY THAN HAS HAPPENED TO DATE TO FIND THE MONEY TO MAINTAIN R. AND D. SPENDING MR. PERRY IS LIKELY TO LOOK FOR EVEN BIGGER CUTS THAN ALREADY HAVE BEEN MADE IN PERSONNEL AND IN THE DEFENSE INFRASTRUCTURE SUCH AS DEFENSE DEPARTMENT LABORATORIES AND MILITARY MAINTENANCE DEPOTS THAT COULD LEAD HIM INTO CONFLICTS BOTH WITH THE MILITARY AND WITH CONGRESS THE ARMY ESPECIALLY RESENTS THE PLANNED REDUCTIONS IN FORCE STRUCTURE THAT IT ALREADY FACES AND WOULD BE SURE TO BALK AT BEING TOLD TO MAKE DEEPER CUTS AND MANY IN CONGRESS JEALOUSLY PROTECT THE SECURE HIGH WAGE JOBS THAT DEFENSE LABS AND DEPOTS REPRESENT IN THEIR DISTRICTS AND STATES FOR MONTHS MR. PERRY HAS BEEN WARNING THAT HE WILL PUSH FOR EVEN MORE BASE CLOSINGS IN THE NEXT SCHEDULED ROUND IN NINETEEN NINETY FIVE THAN THE THIRTY ONE MAJOR CLOSURES THE PENTAGON PROPOSED THIS YEAR EVEN THOUGH PEOPLE HAVE REGARDED THIS NINETY THREE BASE CLOSING AS A MAJOR JOLT I CAN TELL YOU QUITE CANDIDLY THAT THE NINETY FIVE BASE CLOSING IS GOING TO BE GREATER HE SAID IN THE OCTOBER SPEECH MR. PERRY MAY SEE THOSE CLOSURES AS AN OPPORTUNITY TO HELP THE DEFENSE INDUSTRY BY PUSHING SOME PENTAGON SPENDING INTO THE PRIVATE SECTOR QUOTE I DIDN'T HAVE TO BE PERSUADED TO TAKE THE JOB QUOTE ON REDUCING THE DEFENSE ESTABLISHMENT REDUCING OVERHEAD IS THE MOST DIFFICULT MANAGEMENT TASK THAT ANYONE CAN CONFRONT ON CUTTING PERSONNEL AS THE DEFENSE BUDGET DECLINES TRADE OFFS BETWEEN THE SIZE OF THE FORCE AND THE READINESS OF THE FORCE WILL BE MADE IN FAVOR OF READINESS ON SHRINKING THE DEFENSE INDUSTRY THE DEFENSE INDUSTRIAL BASE IS GOING TO HAVE TO BE CONTRACTED TO ABOUT ONE THIRD OF WHAT IT WAS IN THE MID NINETEEN EIGHTIES ON DEFENSE INDUSTRY SUBSIDIES I EXPLICITLY REJECT THE IDEA OF SUPPORTING A DEFENSE COMPANY JUST TO KEEP IT IN BUSINESS WE FULLY EXPECT SEVERAL DEFENSE COMPANIES TO GO OUT OF BUSINESS AND WE WILL STAND BY AND WATCH THAT HAPPEN ON NORTH KOREA QUOTE IT IS QUITE PREDICTABLE THAT IF NORTH KOREA ENDS UP WITH ANY NUMBER OF NUCLEAR WEAPONS IN THEIR HANDS THAT THE MINIMUM DANGER WE HAVE IS THE DANGER OF A NUCLEAR ARMS RACE STARTING IN THE WESTERN PACIFIC AND THE MAXIMUM DANGER OF COURSE IS THAT NUCLEAR WAR MIGHT ACTUALLY BREAK OUT QUOTE ON SUPPORTING RESEARCH IN DEFENSE TECHNOLOGY FROM DEFENSE INVESTMENT A STRATEGY FOR THE NINETEEN NINETIES DECEMBER NINETEEN EIGHTY NINE THE TECHNOLOGY BASE PROGRAM SHOULD FOCUS ON TWO DIFFERENT AREAS THOSE TECHNOLOGIES LIKELY TO LEAD TO DRAMATIC IMPROVEMENTS IN PERFORMANCE SUCH AS MICROELECTRONICS SUPERCOMPUTERS AND ADVANCED MATERIALS AND THOSE TECHNOLOGIES LIKELY TO LEAD TO DRAMATIC REDUCTIONS IN COST SUCH AS COMPUTER AIDED DESIGN TO REDUCE DESIGN COSTS SIMULATION TECHNOLOGY TO REDUCE TRAINING COSTS AND COMPUTER INTEGRATED MANUFACTURING TO REDUCE PRODUCTION COSTS THE DOW JONES INDUSTRIAL AVERAGE ENDED LOWER AFTER PUSHING FAR INTO RECORD TERRITORY BOND PRICES FELL AND THE DOLLAR WAS MIXED THE DOW INDUSTRIALS SLIPPED ONE POINT SIX NINE POINTS TO THREE THOUSAND NINE HUNDRED TWELVE POINT SEVEN NINE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX FELL TWO POINT SEVEN FIVE TO FOUR HUNDRED SEVENTY ONE POINT NINE SEVEN AND THE NASDAQ COMPOSITE INDEX DROPPED THREE POINT SIX THREE TO SEVEN HUNDRED NINETY POINT SIX FIVE THE INDUSTRIAL AVERAGE CLIMBED NEARLY TWENTY POINTS BEFORE REVERSING COURSE ANALYSTS NOTED THAT EVEN AS THE INDUSTRIALS WERE RALLYING DECLINING STOCKS OUTNUMBERED ADVANCERS AND OTHER MAJOR INDEXES WERE SLUMPING A SIMILAR SCENARIO OCCURRED FRIDAY WHEN THE DOW INDUSTRIALS SOARED MORE THAN TWENTY TWO POINTS AND SMASHED THROUGH THE THREE THOUSAND NINE HUNDRED LEVEL QUOTE IT WAS A DOW PHENOMENON QUOTE SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ AND COMPANY THE BROAD MARKET WASN'T PARTICIPATING VERY MUCH TWO STOCKS SAVED THE INDUSTRIAL AVERAGE FROM AN EVEN BIGGER DECLINE CATERPILLAR WHICH JUMPED ONE AND FIVE EIGHTHS TO ONE HUNDRED AND ONE QUARTER AFTER REPORTING STRONGER THAN EXPECTED EARNINGS FRIDAY AND INTERNATIONAL BUSINESS MACHINES WHICH SURGED THREE AND THREE EIGHTHS TO FIFTY EIGHT AND FIVE EIGHTHS I. B. M. WHICH REPORTS ITS FOURTH QUARTER EARNINGS TODAY GOT A BOOST FROM NEWS THAT FIDELITY IS BUYING THE STOCK ANALYSTS EXPECT THE COMPANY TO EARN AS MUCH AS EIGHTY CENTS A SHARE THE FIRST QUARTERLY PROFIT IN MORE THAN A YEAR WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST ONE POINT FIVE SEVEN TO ONE HUNDRED TWELVE POINT NINE NINE STOCK PRICES FELL VOLUME TOTALED TWO HUNDRED NINETY SIX POINT NINE MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND TWO HUNDRED SIX ISSUES FELL AND NINE HUNDRED THIRTY FOUR ROSE BOND PRICES SLIPPED THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE FELL MORE THAN ONE QUARTER POINT OR MORE THAN TWO DOLLARS AND FIFTY CENTS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT THREE OH PERCENT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN FIVE OH EIGHT MARKS AND ONE HUNDRED ELEVEN POINT SEVEN OH YEN COMPARED WITH ONE POINT SEVEN FIVE FOUR OH MARKS AND ONE HUNDRED ELEVEN POINT SIX OH YEN FRIDAY ALL HE WANTED WAS TO START A TINY AIRLINE JUST FOUR PLANES FERRYING PEOPLE ON THE CHEAP FROM BALTIMORE TO BOSTON AND ATLANTA FOR A WEALTHY ENTREPRENEUR WITH HIS EXPERIENCE THAT SHOULDN'T HAVE BEEN TOO DIFFICULT BUT HE ISN'T JUST ANY ENTREPRENEUR HE IS FRANK LORENZO ONE OF THE MOST DESPISED MEN BY SOME PARTIES IN AVIATION HISTORY AND THANKS TO HIS MODEST PROPOSAL HE HAS ONCE AGAIN COME UNDER SCATHING ATTACK BY LABOR UNIONS SOME FORMER COLLEAGUES AND EVEN OFFICIALS IN THE FEDERAL GOVERNMENT ANY DAY NOW THE DEPARTMENT OF TRANSPORTATION IS EXPECTED TO WEIGH IN WITH A DECISION THAT MAY BAR MR. LORENZO FROM LAUNCHING THE AIRLINE HE ONCE PROPOSED CALLING FRIENDSHIP AIRLINES ALREADY A TRANSPORTATION DEPARTMENT ADMINISTRATIVE LAW JUDGE HAS COME DOWN AGAINST HIM IN A PRELIMINARY RULING SAYING THAT MR. LORENZO MAY HAVE THE CASH BUT HE DOESN'T HAVE THE SKILLS AND ISN'T LIKELY TO PLAY BY THE RULES NOW MR. LORENZO IS MAKING ONE LAST EFFORT TO CHANGE THE GOVERNMENT'S MIND TODAY HE IS EXPECTED TO ANNOUNCE THAT TWO NEW INVESTORS HAVE JOINED HIM IN ATX INCORPORATED HIS AIRLINE VENTURE COMPANY DILUTING HIS STAKE TO WELL BELOW FIFTY PERCENT FROM SEVENTY FOUR PERCENT THOUGH THE INVESTORS HAVEN'T BEEN IDENTIFIED PEOPLE CLOSE TO MR. LORENZO SAY ONE IS A FORMER HIGH RANKING NEW YORK DEMOCRATIC OFFICIAL AND THE OTHER IS AN INVESTMENT GROUP BASED IN NEW YORK CLEARLY MR. LORENZO HOPES THAT BY SLASHING HIS OWNERSHIP HE WILL MAKE HIS PROPOSED LITTLE AIRLINE PALATABLE AT LAST TO HIS FOES IT'S A GAMBLE THOUGH AND ONE THAT HASN'T PAID OFF FOR OTHERS IF HE SELLS A MAJORITY STAKE MR. LORENZO AND HIS GROUP MAY HAVE TO UNDERGO ANOTHER SO CALLED FITNESS REVIEW BY THE TRANSPORTATION DEPARTMENT SAYS SAMUEL PODBERESKY A DEPARTMENT LAWYER AND IF THE DEPARTMENT FINDS THAT QUOTE HE ISN'T FIT QUOTE MR. PODBERESKY SAYS QUOTE THEN SELLING A CONTROLLING INTEREST ISN'T GOING TO SOLVE THE PROBLEM QUOTE THAT MR. LORENZO'S OPPONENTS ARRAYED THEMSELVES IN SUCH FORCE AGAINST HIM SHOWS HOW THE ENMITY AGAINST HIM JUST WON'T DIE HIS UNION FOES MOBILIZED NO FEWER THAN FIFTY SEVEN MEMBERS OF CONGRESS AGAINST HIM AND EVEN BRIEFLY CONSIDERED BRINGING UP A NINETEEN NINETY TWO DRUNKEN DRIVING ARREST TO CLOUD HIS NAME THE CHARGED FIGHT HAS OPENED OLD WOUNDS AND INFLICTED NEW ONES IN A BITTER EPISODE THAT BEGAN UNFOLDING LAST SUMMER BEHIND THE DOORS OF A STUFFY HEARING ROOM IN THE BOWELS OF THE TRANSPORTATION DEPARTMENT'S QUARTERS NEAR CAPITOL HILL MR. LORENZO OF COURSE MADE HIS NAME AS THE STEELY UNION BUSTING CHIEF OF THE NOW DEFUNCT TEXAS AIR CORPORATION PARENT OF CONTINENTAL AND EASTERN AIRLINES HE HAS TWICE TAKEN AIRLINES INTO BANKRUPTCY AND HIS UNYIELDING DEMANDS FOR LABOR CONCESSIONS PROMPTED A BRUISING NINETEEN EIGHTY NINE STRIKE AT EASTERN THAT PROVED FATAL TO THE AIRLINE HE SHOWS NO SIGNS OF BACKING DOWN IN THIS LATEST FACE OFF EITHER WE'RE EXACTLY THE KIND OF PEOPLE THE TRANSPORTATION DEPARTMENT SHOULD BE ATTRACTING CONTENDS THE SLIM ANGULAR FIFTY THREE YEAR OLD EXECUTIVE I'VE BECOME THE UNIONS' WHIPPING BOY AIRLINE UNIONS THOUGHT THEY WERE RID OF MR. LORENZO IN AUGUST NINETEEN NINETY WHEN HE STEPPED DOWN FROM CONTINENTAL HOLDINGS THE SUCCESSOR COMPANY TO TEXAS AIR AND SOLD HIS SHARES TO SCANDINAVIAN AIRLINES SYSTEM INCORPORATED FOR MORE THAN TWENTY MILLION DOLLARS AS PART OF THE DEAL HE AGREED TO STAY OUT OF THE AIRLINE BUSINESS FOR SEVEN YEARS HE SET UP HOUSTON BASED SAVOY CAPITAL INCORPORATED A VENTURE CAPITAL FIRM AND ANNOUNCED PLANS TO INVEST IN START UP FIRMS IN OTHER FIELDS BUT MR. LORENZO JUST COULDN'T STAY AWAY IN JANUARY NINETEEN NINETY THREE HE PAID FIVE MILLION DOLLARS TO SETTLE WITH CONTINENTAL CREDITORS WHO CLAIMED HE HAD SOLD HIS SHARES TO S. A. S. AT TOO HIGH A PRICE AS PART OF THE SETTLEMENT THE NON COMPETE CLAUSE WAS SCRAPPED BY LATE NINETEEN NINETY TWO MR. LORENZO HAD HIRED THREE FORMER CONTINENTAL EXECUTIVES WHO DID RESEARCH SHOWING A NICHE FOR A CUT RATE AIRLINE ON THE EAST COAST AT THE START OF NINETEEN NINETY THREE JUST BEFORE THE NON COMPETE CLAUSE WAS KILLED HE BROUGHT IN STEPHEN J. KOLSKI FORMER PRESIDENT OF CONTINENTAL'S COMMUTER CARRIER TO OFFICIALLY OPEN UP SHOP AS AN AIRLINE AGAIN MR. LORENZO HAD TO PASS MUSTER WITH THE TRANSPORTATION DEPARTMENT WHICH JUDGES THE FITNESS OF ANYONE WHO WANTS TO START A CARRIER IN A BID TO SMOOTH THE WAY AND APPEASE POTENTIAL CRITICS MR. KOLSKI IMMEDIATELY EMBARKED ON A DAMAGE CONTROL MISSION BY SEEKING OUT MR. LORENZO'S TOUGHEST FOES THE UNIONS REPRESENTING AIRLINE PILOTS AND MECHANICS MR. LORENZO'S FRONT MAN COULD GET THROUGH DOORS MR. LORENZO HIMSELF WOULD HAVE HAD SLAMMED IN HIS FACE A BALDING BEARISH MAN WHO LOOKS LIKE THE NOTRE DAME FOOTBALL PLAYER HE ONCE WAS MR. KOLSKI FIRST ARRANGED A MEETING WITH RANDOLPH BABBITT THE PRESIDENT OF THE POWERFUL AIR LINE PILOTS ASSOCIATION THE TWO MEN HADN'T MET BEFORE BUT THEY KNEW OF EACH OTHER MR. KOLSKI HAD BEEN A VICE PRESIDENT OF EASTERN IN THE NINETEEN EIGHTIES UNDER MR. LORENZO WHEN MR. BABBITT WAS A CAPTAIN FLYING A THREE HUNDRED JETLINERS THERE ON A FRIGID TUESDAY LAST FEBRUARY THE TWO MEN CHATTED AMICABLY IN THE UNION PRESIDENT'S OFFICE FILLED WITH MODELS OF UNION REPRESENTED CARRIERS INCLUDING TWO FROM EASTERN SITTING IN FRONT OF A WALL ADORNED WITH FRAMED NOW WORTHLESS EASTERN STOCK CERTIFICATES MR. KOLSKI DESCRIBED THE CONCEPT OF FRIENDSHIP AIRLINES WHICH WOULD FLY TWO DAILY ROUND TRIPS FROM BALTIMORE TO ATLANTA AND TO BOSTON HE NEEDED PILOTS HE SAID BUT THERE WAS SOMETHING THE UNION MIGHT WANT TO KNOW FRIENDSHIP'S BIGGEST SHAREHOLDER WAS FRANK LORENZO MR. LORENZO DIDN'T WANT TO BE AT ODDS WITH THE UNION ANY MORE MR. KOLSKI SAID COULDN'T IT FORGIVE AND FORGET WHAT HAPPENED NEXT SOURED ANY PROSPECT OF THE TWO SIDES RECONCILING THOUGH THE SIDES OFFER VERY DIFFERENT VERSIONS OF WHAT TRANSPIRED ACCORDING TO MR. BABBITT THE UNION HAD NOTHING AGAINST MR. KOLSKI BUT MR. LORENZO WAS ANOTHER MATTER YOU'RE ENTERING THIS WITH AN ALBATROSS YOU'VE TIED AROUND YOUR OWN NECK MR. BABBITT SAYS HE TOLD MR. KOLSKI WHY BUT AS MR. KOLSKI TELLS IT MR. BABBITT NEVER SAID THE UNION WOULD OPPOSE A LORENZO AIRLINE HE CLAIMS MR. BABBITT INSTEAD URGED HIM TO HIDE MR. LORENZO'S OWNERSHIP A FEDERAL CRIME HE SAYS MR. BABBITT THEN OFFERED HIM A LIST OF OUT OF WORK PILOTS IN ANY CASE A DAY LATER THE PILOTS UNION DECLARED ITS OPPOSITION TO MR. LORENZO'S RE ENTRY INTO THE AIRLINE INDUSTRY EVEN THOUGH MR. LORENZO HADN'T YET ANNOUNCED HIS PLANS HIMSELF THE UNION'S PRESS RELEASE MINCED NO WORDS HE IS THE VERY EMBODIMENT OF EVIL MR. KOLSKI PRESSED ON TRYING TO SET UP A MEETING WITH THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS WHICH REPRESENTS MECHANICS AND BAGGAGE HANDLERS HE WAS REBUFFED AT THE SAME TIME MESSRS LORENZO AND KOLSKI BEGAN COURTING STATE POLITICIANS THEY TALKED WITH MARYLAND ECONOMIC DEVELOPMENT OFFICIALS ABOUT GETTING TAX INCENTIVES THEY DINED WITH GOVERNOR DONALD SCHAEFER JUST BEFORE VALENTINE'S DAY THE GOVERNOR WAS AMENABLE MR. KOLSKI SAYS QUOTE WE NEED THE BUSINESS WE WANT THE BUSINESS WE WANT TO BE HELPFUL MR. KOLSKI SAYS A STATE ECONOMIC DEVELOPMENT OFFICIAL TOLD HIM BUT A MARYLAND STATE LEGISLATOR WHO ALSO HAPPENED TO BE AN OFFICER OF THE MACHINISTS UNION LEARNED OF THE TALKS THE WELL ORGANIZED UNION URGED ITS MARYLAND MEMBERS TO BEGIN A LETTER WRITING CAMPAIGN TO STATE LEGISLATORS AND THE LEGISLATORS ULTIMATELY PASSED A RESOLUTION OPPOSING USE OF STATE FUNDS FOR FRIENDSHIP SIMILAR LOBBYING TOOK PLACE ON CAPITOL HILL BY THE TIME FRIENDSHIP APPLIED TO THE TRANSPORTATION DEPARTMENT FOR AN OPERATING CERTIFICATE FIFTY SEVEN HOUSE MEMBERS HAD WRITTEN TO SECRETARY FEDERICO PENA URGING HIM TO REJECT IT SPURRED BY THIS FLURRY OF ANTAGONISM AND WITH THE BENEFIT OF HINDSIGHT THE DEPARTMENT TOOK THE UNUSUAL STEP OF ORDERING A FORMAL INVESTIGATION INTO FRIENDSHIP A PUBLIC HEARING BEFORE AN ADMINISTRATIVE LAW JUDGE WAS SET FOR JUNE MR. LORENZO SAID HE WELCOMED THE HEARING BUT IRE AGAINST HIS UNION FOES SURFACED AT AN APRIL LUNCHEON OF THE AERO CLUB IN WASHINGTON AT WHICH SECRETARY PENA WAS TO MAKE HIS FIRST SPEECH TO THE AIRLINE INDUSTRY AS A LATE ARRIVING MR. LORENZO WALKED BY THE PILOTS UNION'S TABLE IN A CROWDED HOTEL BALLROOM HE PAUSED AND STUCK HIS NOSE IN THE AIR I THOUGHT I SMELLED SOMETHING HE SAID IN A VOICE LOUD ENOUGH FOR MR. BABBITT AND OTHER UNION OFFICIALS TO HEAR MR. LORENZO SAYS HE WAS JOKING IN HIS YEARS BATTLING LABOR IN THE NINETEEN EIGHTIES MR. LORENZO HAD PAID BIG MONEY FOR LAWYERS AND LOBBYISTS TO KEEP HIS AIRLINES FLYING BUT THIS TIME HE HADN'T BOTHERED HE DIDN'T THINK HE NEEDED THE HELP A BUSH ADMINISTRATION APPOINTEE HAD TOLD HIM HIS VENTURE WAS SUCH A SURE THING IT PROBABLY DIDN'T EVEN NEED A LAWYER MR. LORENZO SAYS HIS UNION FOES HAD OTHER IDEAS THE PILOTS AND MACHINISTS REASSEMBLED THE TEAM OF LAWYERS AND CONSULTANTS THAT HAD OPPOSED MR. LORENZO IN THE NINETEEN EIGHTIES SOME HAD WORKED TOGETHER FOR MORE THAN A DECADE AND KNEW EACH OTHER SO WELL THAT THEY DIDN'T NEED MANY PLANNING SESSIONS IT'S ALMOST LIKE SHORTHAND SAYS JOHN SULLIVAN A PARTNER WITH THE LAW FIRM OF GUERRIERI EDMOND AND JAMES WHICH REPRESENTS THE MACHINISTS UNION IN ONE STRATEGY SESSION A UNION OFFICIAL SUGGESTED A PERSONAL ATTACK THE UNION HAD LEARNED OF A DRUNKEN DRIVING ARREST OF MR. LORENZO IN AUGUST NINETEEN NINETY TWO IN HOUSTON IN WHICH HE FAILED AN AGILITY TEST AND WAS BROUGHT IN TO THE POLICE STATION MR. LORENZO PLEADED NO CONTEST AND WAS GIVEN TWO YEARS OF PROBATION ONE PILOTS UNION OFFICIAL ARGUED THAT SINCE PILOTS CONVICTED OF DRUNKEN DRIVING CAN LOSE THEIR FLYING LICENSES MR. LORENZO SHOULD BE HELD TO THE SAME STANDARD BUT EVERYONE ELSE RESISTED THERE WERE ENOUGH REASONS TO OPPOSE HIM ON BUSINESS REASONS NOT TO BRING HIS PERSONAL LIFE INTO IT MR. BABBITT SAYS OVER AT THE LORENZO CAMP MEANWHILE PROBLEMS WERE CROPPING UP AT EVERY TURN IN MAY MR. LORENZO WAS FORCED TO DROP THE FRIENDSHIP AIRLINES NAME BECAUSE UNITED OWNED THE RIGHTS TO IT HE ALSO DROPPED THE EASYGOING REGULATORY ATTORNEY HE HAD RETAINED WHEN HE THOUGHT HIS COMPANY WOULD BE A SHOO IN REPLACING HIM WITH FEISTY ROBERT BECKMAN OF BECKMAN KIRSTEIN AND MURPHY IN WASHINGTON MR. BECKMAN PEPPERED THE TRANSPORTATION DEPARTMENT WITH EXTRA FILINGS HE OPPOSED WHAT HE VIEWED AS ONEROUS DOCUMENT REQUESTS HE OBJECTED TO AN ORDER THAT MR. LORENZO PRODUCE COPIES OF EVERY LAWSUIT FILED AGAINST HIM A REQUIREMENT INVOLVING HUNDREDS OF THOUSANDS OF PAGES AND SO MANY LAWSUITS THAT THE LORENZO CAMP CAN'T EVEN PROVIDE AN EXACT NUMBER THE ADMINISTRATIVE LAW JUDGE ULTIMATELY WOULD FIND THAT ATX'S FAILURE TO HAND OVER THE DOCUMENTS PROMPTLY SHOWED THE COMPANY WASN'T INCLINED TO COMPLY WITH FEDERAL REQUIREMENTS THE FIRST DAYS OF THE HEARINGS TOOK PLACE IN LATE JUNE DURING WASHINGTON'S STIFLING SUMMER AND THE DRAB HEARING ROOM WASN'T WELL AIR CONDITIONED WITH SEATS FOR ONLY A FEW DOZEN SPECTATORS IT WAS PACKED MR. LORENZO GOT OFF TO A BAD START HE SHED HIS SUIT JACKET AND DRAPED IT OVER THE BACK OF THE WITNESS CHAIR TO THE ASTONISHMENT OF THE BUTTONED UP COURTROOM CROWD JUDGE ROBERT L. BARTON TOLD HIM TO PUT THE JACKET BACK ON AND MR. LORENZO SHEEPISHLY COMPLIED THE REST OF THE HEARING DIDN'T GO MUCH BETTER FOR MR. LORENZO THE PILOTS UNION COLLECTED A LONG LIST OF MAINTENANCE VIOLATIONS AT EASTERN WHEN MR. LORENZO CONTROLLED THE CARRIER AND DESCRIBED LABOR AGREEMENTS HE HAD REFUSED TO SIGN THE MACHINISTS UNION PERSUADED FORMER CONTINENTAL CHIEF EXECUTIVE D. JOSEPH CORR TO TESTIFY AS ONE OF NINE CONTINENTAL PRESIDENTS IN AS MANY YEARS MR. CORR DESCRIBED MR. LORENZO'S DAY TO DAY MANAGEMENT STYLE AS DISHONEST INATTENTIVE TO MATTERS OF SAFETY DISRUPTIVE AND GENERALLY UNQUALIFIED HE CALLED HIS FORMER BOSS A QUOTE SINGLE BAGGER QUOTE WHEN IT CAME TO SAFETY QUOTE SOME GROCERY STORES WHEN YOU GO IN TO GET YOUR GROCERIES THEY GIVE YOU JUST A SINGLE BAG OTHER GROCERY STORES THAT YOU GO TO THEY GIVE YOU A DOUBLE BAG MR. LORENZO HE TESTIFIED BELONGED TO THE FORMER CATEGORY MR. LORENZO SAYS HE FIRED MR. CORR IN NINETEEN EIGHTY NINE FOR INCOMPETENCE AND CONTENDS THE FORMER EXECUTIVE LIED TO INGRATIATE HIMSELF WITH UNIONS WHICH ARE LOOKING FOR CHIEF EXECUTIVES AT AIRLINES IN WHICH THEY HOLD STAKES HE'S A DISGRUNTLED EMPLOYEE MR. LORENZO SAYS ALL THIS TESTIMONY FELL ON WILLING EARSTHOSE OF FEDERAL REGULATORS WHO HAD HAD THEIR FIRST RUN INS WITH MR. LORENZO DURING THE NINETEEN EIGHTIES TRANSPORTATION DEPARTMENT ANALYSTS SIFTED THROUGH NINETY BOXES OF OLD DOCUMENTS DATING BACK TO MR. LORENZO'S DAYS CONTROLLING EASTERN CONTINENTAL AND CONTINENTAL EXPRESS TO MR. PODBERESKY OF THE TRANSPORTATION DEPARTMENT'S PUBLIC COUNSEL OFFICE THE NEW EVIDENCE SHOWED MR. LORENZO COULDN'T CLAIM AS HE HAD DURING THE HEARINGS THAT HE WASN'T INVOLVED IN DAY TO DAY OPERATIONS AT HIS OLD AIRLINES WHEN PROBLEMS AROSE HE WAS INVOLVED FROM DAY ONE TO THE LAST DAY THE TRANSPORTATION DEPARTMENT LAWYER SAYS HE DIDN'T FIX IT FROM OUR VANTAGE POINT SOMEONE'S GOT TO BE HELD ACCOUNTABLE MR. LORENZO CAN'T APPEAL THE TRANSPORTATION DEPARTMENT RULING UNTIL SECRETARY PENA ISSUES A FINAL DECISION BUT HE HAS ALREADY ASSEMBLED THE LEGAL TEAM TO DO JUST THAT AND SAYS HE WILL TAKE HIS CASE TO THE FEDERAL APPEALS COURT IN WASHINGTON IF THE RULING COMES DOWN AGAINST HIM HE HAS ALSO RETAINED A WELL CONNECTED PUBLIC RELATIONS FIRM DILENSCHNEIDER AND COMPANY WHOSE CHAIRMAN ROBERT DILENSCHNEIDER WAS CHIEF EXECUTIVE OF POWERHOUSE FIRM HILL AND KNOWLTON UNDER HIS TENURE THERE THAT FIRM TOOK ON CONTROVERSIAL CLIENTS SUCH AS THE U. S. CONFERENCE OF CATHOLIC BISHOPS IN ITS ANTIABORTION CAMPAIGN AND BANK OF CREDIT AND COMMERCE INTERNATIONAL IN THE MIDST OF ITS FINANCIAL SCANDAL LOOKING BACK NOW MESSRS LORENZO AND KOLSKI CONTEND THE TRANSPORTATION DEPARTMENT WAS OPPOSED TO THEIR APPLICATION FROM THE START AND WAS LOOKING FOR REASONS TO REJECT IT QUOTE WHO REPRESENTED THE PUBLIC IN ALL THIS QUOTE ASKS MR. KOLSKI FLYERS SEEKING CHEAP FARES IN THE NORTHEAST HE ADDS AREN'T LIKELY TO GET THEM BUT THE BALTIMORE MARKET ATX PLANNED TO SERVE HAS BECOME THE EAST COAST'S LOW FARE MECCA SOUTHWEST AIRLINES ADDED BALTIMORE TO ITS ROUTE STRUCTURE IN SEPTEMBER SETTING OFF A PRICE WAR AMONG CARRIERS INCLUDING U. S. AIR AND CONTINENTAL AIRLINES MR. LORENZO BATTLING FOR SO LONG TO START UP HIS AIRLINE IN BALTIMORE MAY HAVE MISSED HIS OPPORTUNITY MARYLAND AVIATION ADMINISTRATOR TED MATHIESON SAYS HE HASN'T HEARD FROM MR. LORENZO'S GROUP SINCE LAST JUNE NOW HE SAYS HE HEARS RUMORS THAT ATX MIGHT BE LOOKING TO BASE ITS OPERATIONS IN PHILADELPHIA INSTEAD MR. LORENZO THROUGH A SPOKESMAN CONFIRMS THAT HE IS INTERESTED IN PHILADELPHIA AS WELL AS IN BOSTON AND NEW YORK SAYS MR. MATHIESON THE PICTURE HAS CHANGED A LOT FROM WHERE WE WERE A YEAR AGO DANIEL PEARL CONTRIBUTED TO THIS ARTICLE IN A MOVE THAT ELATED INDEPENDENT INVENTORS THE COMMERCE DEPARTMENT SAID THE U. S. IS PULLING BACK FROM INTERNATIONAL NEGOTIATIONS AIMED AT BRINGING THE WORLD'S PATENT LAWS INTO HARMONY THE NEGOTIATIONS WHICH BEGAN NEARLY A DECADE AGO WERE AIMED AT MOVING THE U. S. FROM ITS CURRENT QUOTE FIRST TO INVENT QUOTE SYSTEM TO THE QUOTE FIRST TO FILE QUOTE METHOD USED BY MOST OTHER COUNTRIES UNDER FIRST TO INVENT PATENTS ARE AWARDED TO THE PERSON WHO FIRST INVENTS A PRODUCT RATHER THAN TO THE INVENTOR WHO FIRST FILES FOR PATENT PROTECTION MANY INDEPENDENT INVENTORS FEARED THAT SUCH A SWITCH WOULD PUT THEM AT A DISADVANTAGE TO BIG CORPORATIONS THAT HAVE THE FINANCIAL RESOURCES TO FILE COUNTLESS PATENT APPLICATIONS THIS IN TURN WOULD HINDER INNOVATION AND THREATEN A TWO HUNDRED YEAR OLD U. S. TRADITION OF PATENT PROTECTION INVENTORS SAY THE U. S. ADOPTED THE FIRST TO INVENT SYSTEM DURING GEORGE WASHINGTON'S PRESIDENCY BUT YESTERDAY COMMERCE SECRETARY RONALD BROWN SAID THAT THE U. S. WOULD NOT SEEK TO RESUME NEGOTIATIONS OF A TREATY HARMONIZING THE WORLD'S PATENT LAWS AT THIS TIME MR. BROWN HELD OUT THE POSSIBILITY THAT THE U. S. WOULD RESUME THE TALKS AT A LATER DATE WE WILL MAINTAIN THE FIRST TO INVENT SYSTEM WHILE KEEPING OPEN THE OPTION OF FULL PATENT HARMONIZATION HE SAID HERBERT WAMSLEY EXECUTIVE DIRECTOR OF INTELLECTUAL PROPERTY OWNERS INCORPORATED A TRADE ASSOCIATION IN WASHINGTON D. C. INTERPRETED YESTERDAY'S DECISION AS A CLARIFICATION TO U. S. TRADING PARTNERS THAT THEY WOULD HAVE TO MAKE CONCESSIONS TO THE U. S. ON A VARIETY OF DEMANDS HE CONTENDED THAT FIRST TO FILE WILL INEVITABLY BE ADOPTED BUT RAYMOND DAMADIAN PRESIDENT OF FONAR CORPORATION IN MELVILLE N. Y. AND THE INVENTOR OF MAGNETIC RESONANCE IMAGING SAID THE ANNOUNCEMENT WAS ABSOLUTELY CRITICAL IN PRESERVING THE NATION'S ENTREPRENEURIAL ECONOMY THE FUNDAMENTAL THING IS THAT THIS COUNTRY'S WEALTH WAS GENERATED BY SMALL INVENTORS WHO WERE ABLE TO USE THEIR PATENTS TO BUILD BIG COMPANIES A. T. AND T. INTERNATIONAL HARVESTER I. B. M. THE LIST IS ENDLESS QUOTE DOCTOR DAMADIAN SAID HE SAID BIG U. S. AND FOREIGN CORPORATIONS NOTABLY THOSE IN JAPAN AND GERMANY HAD EXERTED TREMENDOUS PRESSURE ON THE U. S. TO MAKE THE CHANGE IF THE U. S. HAD ACQUIESCED HE SAID THOSE CORPORATIONS COULD HAVE FLOODED THE U. S. PATENT OFFICE WITH ENDLESS FILINGS ESSENTIALLY DESTROYING GARAGE TINKERERS WHO HAVE BIG IDEAS BUT LITTLE MONEY STAPLES INCORPORATED SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE NATIONAL OFFICE SUPPLY COMPANY A NATIONWIDE CONTRACT OFFICE SUPPLY DEALER BASED IN SOUTH HACKENSACK N. J. IN A STOCK SWAP STAPLES A FRAMINGHAM MASSACHUSETTS DISCOUNT OFFICE SUPPLY COMPANY SAID THE DEAL WAS VALUED AT ABOUT ONE HUNDRED MILLION DOLLARS WITH ABOUT EIGHTY FOUR MILLION DOLLARS IN EQUITY AND AN ASSUMPTION OF FIFTEEN MILLION DOLLARS IN DEBT DURING THE PAST FIVE YEARS NATIONAL'S INTERNALLY GENERATED ANNUAL REVENUE GROWTH HAS BEEN ABOUT TWENTY PERCENT WITH REVENUE IN ITS CURRENT FISCAL YEAR EXPECTED TO BE ONE HUNDRED FIFTY MILLION DOLLARS STAPLES SAID NATIONAL'S SHAREHOLDERS WILL RECEIVE STAPLES COMMON STOCK AND THE TRANSACTION WILL BE ACCOUNTED FOR AS A POOLING OF INTERESTS STAPLES EXPECTS THE ACQUISITION TO BE COMPLETED BY THE END OF MARCH STAPLES ALSO SAID IT WILL ACQUIRE THE FIFTY EIGHT PERCENT OF ITS CANADIAN JOINT VENTURE BUSINESS DEPOT THAT IT DOESN'T ALREADY OWN THE PURCHASE FOR ABOUT THIRTY TWO MILLION DOLLARS WILL TAKE PLACE AS EARLY AS MID NINETEEN NINETY FOUR STAPLES SAID BECKMAN INSTRUMENTS INCORPORATED SAID IT WILL TAKE A ONE HUNDRED THIRTY FIVE MILLION DOLLAR PRETAX CHARGE AGAINST EARNINGS TO BE SPREAD OVER NINETEEN NINETY THREE AND NINETEEN NINETY FOUR TO COVER THE COST OF A MAJOR REORGANIZATION THE FULLERTON CALIFORNIA SUPPLIER OF PRODUCTS USED FOR BIOLOGICAL ANALYSIS IN LABORATORIES REPORTED A LOSS OF SIXTY SEVEN MILLION DOLLARS OR TWO DOLLARS AND FORTY ONE CENTS A SHARE FOR THE FOURTH QUARTER OF NINETEEN NINETY THREE COMPARED WITH EARNINGS OF TWELVE POINT FOUR MILLION DOLLARS OR FORTY FOUR CENTS A SHARE IN THE YEAR EARLIER QUARTER THE AFTER TAX CHARGE IN THE FOURTH QUARTER IS SEVENTY TWO POINT THREE MILLION DOLLARS OR TWO DOLLARS AND SIXTY ONE CENTS A SHARE SALES FOR THE RECENT QUARTER WERE TWO HUNDRED THIRTY SIX POINT SIX MILLION DOLLARS A DECREASE OF FIVE POINT FOUR PERCENT FROM TWO HUNDRED FIFTY POINT TWO MILLION DOLLARS A YEAR EARLIER THE COMPANY HAD SAID IN OCTOBER THAT IT WOULD TAKE A CHARGE FOR JOB ELIMINATIONS AND REORGANIZATION TO CUT COSTS BUT IT HAD NOT STATED THE AMOUNT OF THE CHARGE OF THE TOTAL PRETAX CHARGE ONE HUNDRED FIFTEEN MILLION DOLLARS WILL BE TAKEN IN NINETEEN NINETY THREE AND TWENTY MILLION DOLLARS IN NINETEEN NINETY FOUR AS THE COMPANY ELIMINATES AT LEAST EIGHT HUNDRED JOBS BECKMAN'S STOCK CLOSED AT TWENTY EIGHT DOLLARS A SHARE UP TWELVE POINT FIVE CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ONE OF HIS CHIMNEYS QUOTE FELL THROUGH THE ROOF QUOTE AND SMASHED HIS LIBRARY BUT AUTHOR RAY BRADBURY WAS PUTTING A POSITIVE FACE ON THE LOS ANGELES EARTHQUAKE IT'S ALREADY IMPROVED OUR LIVES WE'RE THROWING OUT A LOT OF BOOKS THAT WE'VE BEEN KEEPING FOR THIRTY YEARS LEST ANY READER OF FAHRENHEIT FOUR HUNDRED FIFTY ONE THINK THAT ONE OF L. A.'S PREMIER BIBLIOPHILES HAD TORN A BINDING OF HIS OWN IN THE TREMOR THE SEVENTY THREE YEAR OLD MR. BRADBURY EXPLAINS THAT THE DISCARDED VOLUMES WENT TO OTHERS AND NOT TO SCRAP HIS TYPEWRITER ALSO WAS A TEMPORARY CASUALTY BUT THE SCIENCE FICTION AND SCREENWRITER WAS SPARED THE WORST OF IT LAST WEEK IN THE TIDIED UP PARLOR OF HIS HOME IN THE CHEVIOT HILLS NEIGHBORHOOD BETWEEN THE FOX AND FORMER M. G. M. STUDIOS ON THE CITY'S WEST SIDE HE WAS TOUTING THE FRONTIER FEELINGS THAT ARISE WHEN A LOT OF PEOPLE ARE CLEANING OUT THEIR LIVES I VISITED MR. BRADBURY AFTER THE QUAKE BECAUSE OF HIS AUTUMNAL EMERGENCE AS A MUSE ON URBAN LIFE AND IN PARTICULAR ON THE COURSE OF THE CITY WHERE HE'S LIVED FOR NEARLY SIXTY YEARS HIS ESSAYS AND TALKS HAVE INFLUENCED PLANNERS AND DEVELOPERS IN L. A. AND ELSEWHERE WITH THE LOCAL CANVAS NOW PARTLY CLEARED WHAT MIGHT WE SEE WE'LL GO BACK TO BEING FOOLS HE SAYS REFERRING TO THE AUTOMOBILE WHICH THIS L. A. ODDITY HAS NEVER LEARNED TO OPERATE MOST EVERYONE ELSE IS UPSET ABOUT SUNDERED FREEWAYS QUOTE I WAS HOPING THEY'D ALL BE DESTROYED THIS WEEK WITHOUT HURTING ANYONE QUOTE HE ADMITS FREEWAYS ARE FULL OF UNNECESSARY DRIVERS I DESCRIBE THEM AS AN ATTRACTIVE NUISANCE MOST PEOPLE THAT ARE ON THEM AT ANY ONE HOUR SHOULDN'T BE THERE PART VISIONARY PART CURMUDGEON MR. BRADBURY IS A MAN OF GRAND OPINIONS JUST WHAT YOU MIGHT EXPECT IN A STORYTELLER AND A NICE BREAK FROM THE USUAL RUN OF L. A.'S BUSILY TALKING HEADS I ANTICIPATED THE SALLY AGAINST THE CAR CULTURE MR. BRADBURY HAS CAMPAIGNED FOR RAPID TRANSIT FOR THIRTY YEARS OF COURSE NOW THAT A SUBWAY IS FINALLY BEING BUILT IN LOS ANGELES HE THINKS THEY GOT IT ALL WRONG WITH A ROUTE THAT SNAKES ALONG DENSE BUT DULL CORRIDORS MONORAILS LINKING ACTIVITY CENTERS ARE WHAT HE WANTS MR. BRADBURY INSISTS THAT ANGELENOS WERE FORCED INTO THEIR AFFAIR WITH THE AUTO BY A DENIAL OF CHEAP TRANSIT OPTIONS YET HE ACKNOWLEDGES THE SUBURBAN URGE WHICH THE CAR HAS ENCOURAGED HIS DAUGHTER AND HER FAMILY MOVED ACROSS THE VENTURA COUNTY LINE SEVERAL YEARS AGO IT'LL BE EASY TO GET IN TO THE CITY FORTY FIVE MINUTES SOMEONE TOLD HIM BUT AS OTHERS GET THE SAME IDEA TREKS ARE PROLONGED AND IN SUCH SITUATIONS LIFE'S RHYTHMS CHANGE AND MARRIAGES MAY SUFFER FORTUNATELY A DYNAMIC ECONOMY ADAPTS AS WELL JOBS FOLLOW THE PEOPLE OR TECHNOLOGY MAKES IT POSSIBLE TO WORK FROM WHERE YOU ARE BUT MR. BRADBURY'S HEART IS IN THE CITY IN KEEPING IT BUSTLING AND LIVABLE HE PRAISES THE EUROPEAN CAPITALS ESPECIALLY PARIS WHERE HE AND HIS WIFE NOW SPEND A COUPLE OF MONTHS A YEAR HE SAYS HE'LL WALK TEN MILES A NIGHT ALONG ITS CAFE LINED STREETS THAT IS THE ATMOSPHERE HE WANTS TO IMPLANT ALL OVER THE LOS ANGELES BASIN HIS BASIC SCHEME IS TO BRING DOZENS OF EATERIES SEVERAL CINEMAS AND A FEW BOOKSTORES TOGETHER IN ONE FELL SWOOP TO CREATE GATHER AND STARE PLACES PREFERABLY OPEN AIR FOR WHICH THE SOUTHERN CALIFORNIA CLIMATE IS IDEAL CROWDS CREATE SOCIABILITY AND ENFORCE ETIQUETTE AS LONG AS CRIMINALS ARE KEPT AT BAY HE SAYS THE IDEA WOULD BE TO HAVE SUCH SPOTS IN EACH OF THE L. A. AREA'S EIGHTY QUOTE MICROPOLISES QUOTE MR. BRADBURY HAS WRITTEN SO THAT THE LOCALS WHO'VE BEEN DRIVEN AWAY BY UNIMAGINATIVE QUOTE DOWNTOWNS QUOTE WILL ENJOY GETTING QUOTE LOST QUOTE IN THEIR OWN ENVIRONS HE HOPES THAT CORPORATIONS WORKING WITH ENTREPRENEURS WILL BRING SUCH PROJECTS INTO BEING HE HAS LITTLE FAITH IN GOVERNMENTS OR CHAMBERS OF COMMERCE TO DO SO HE REMEMBERS HIS YOUTH IN THEN VIBRANT HOLLYWOOD WHEN THE STREET SCENE ALLOWED A DEPRESSION POOR BOY TO ENCOUNTER HIS DREAMS BUT MR. BRADBURY HAS NO SUCH NOSTALGIA FOR NINETEEN SIXTIES SOUTHERN CALIFORNIA WHICH SOME PEOPLE REGARD AS ITS GOLDEN AGE ITS UNINSPIRED COMMERCIAL STRIPS AND LACK OF CENTER STARTED HIM ON HIS SECOND CAREER AS A MASTER OF THE OBVIOUS HIS OBVIOUS NOTIONS HAVE TAKEN ROOT IN SEVERAL L. A. AREA LOCATIONS IN RECENT YEARS SOMETIMES IN THE WORK OF ARCHITECT JON JERDE WHO'S WRITTEN THAT MR. BRADBURY UNDERSTANDS THE ESSENTIAL SPIRIT AND PARTS OF THE CITY AS NO OTHER MR. JERDE'S PROJECTS HAVE BEEN MORE IN THE VEIN OF SHOPPING MALLS THAN TRADITIONAL CITY BLOCKS BUT MR. BRADBURY SAYS THIS MAY BE NECESSARY WHERE PUBLIC AUTHORITIES HAVE LOST CONTROL YOU HAVE TO BUILD A MEDIEVAL CITY OBSERVES THE AUTHOR THE WESTSIDE PAVILION A REVIVED COMPLEX NEAR HIS HOME IS RUN BY A WHOLE NEW SET OF LORDS IN THEIR CASTLE AND THE EVIL PEASANTS ARE OUTSIDE SOMEWHERE AND YOU LET THE GOOD PEASANTS IN IT'S A SUBSTITUTE FOR A REAL CITY THE EARTHQUAKE ITSELF MAY NOT HAVE BROKEN MUCH GROUND FOR MORE OF THE BRADBURY TOUCH ALTHOUGH PEDESTRIAN PATHS WITH LIGHTS AND CARTS ARE NOT THE WORST IDEA FOR SEISMICALLY SENSITIVE TURF BUT THE DESPAIR THAT SEEMS TO GRIP SO MANY IN TOWN MAY DO THE TRICK ONE POSITIVE OMEN IS THE INCREASING CONNECTION BETWEEN THE ENTERTAINMENT INDUSTRY WITH ITS THEME PARK VENTURES AND THE RETAIL WORLD MR. BRADBURY WAS AN EARLY ENTHUSIAST OF THE DISNEY MODEL QUOTE DISNEYLAND IS A CIVILIZATION AND IT'S IMPROVED THE WORLD QUOTE HE SAYS I KNEW WALT AND I DEFENDED HIM AGAINST THE SNOBS IN NEW YORK AND EVER SINCE THE MAYORS OF THE WORLD HAVE COME INTO DISNEYLAND TO LEARN HOW TO RE CREATE THEIR CITIES CLEANLINESS QUALITY AND FUN AND NEVER MIND A LITTLE ERSATZ MR. BRADBURY LIKES THE SOUTH STREET SEAPORT IN NEW YORK HE SAYS HE WON'T GO ANYWHERE ELSE TO EAT IN THE APPLE HE SHOWS NO DEFERENCE TO URBAN DERELICTS YOU GET THREE DOZEN HOMELESS AND A THOUSAND PEOPLE ARE KEPT OUT HE'S ALSO ON A KICK AGAINST GRAFFITI PROPOSING IN A LETTER TO THE LOS ANGELES TIMES A COORDINATED CITIZEN PAINT OVER OF VANDALIZED WALLS SOMETHING HE SAYS HE'S TRIED HIMSELF AND HE WANTS ILLEGAL ALIENS OUT IMMIGRATION AT CURRENT LEVELS SAYS THIS SON OF A SWEDE IS GOING TO DESTROY CALIFORNIA THE MILLIONS NOW HERE LEGALLY MUST BE TAUGHT ENGLISH SO WHO'S GOING TO BUS TABLES AT THE SCORES OF NEW CAFES ALONG THE RUE DE BRADBURY I ASK HIM AGAIN IF THE QUAKE WILL BE ENOUGH TO JAR L. A. ONTO A NEW PATH IT WILL TAKE AN ATOM BOMB HE RESPONDS BUT SERIOUSLY HE THINKS HE'S GAINING SOME LISTENERS INCLUDING THE NEW MAYOR RICHARD RIORDAN RIGHT NOW THE BEST TONIC MIGHT BE HUMOR HE RECALLS A STORY APOCRYPHAL IT TURNS OUT ABOUT POLITICAL IDOL AND L. A. BORN ADLAI STEVENSON WHOSE ILLINOIS FARMHOUSE BURNED IN NINETEEN THIRTY EIGHT STEVENSON BY THIS VERSION GATHERED HIS CLAN ABOUT THE RUINS AND SAID QUOTE O. K. GO GET THE MARSHMALLOWS QUOTE A MAGNIFYING GLASS SANBORN INCORPORATED FILED FOR CHAPTER ELEVEN PROTECTION IN U. S. BANKRUPTCY COURT IN WORCESTER MASSACHUSETTS THE WASTE MANAGEMENT COMPANY SAID THAT EFFECTIVE WITH THE FILING LAST FRIDAY STEPHEN GRAY OF THE RECOVERY GROUP WAS NAMED INTERIM CHIEF EXECUTIVE THE COMPANY BASED IN WRENTHAM MASSACHUSETTS SAID IT INTENDS TO CONTINUE ITS OPERATIONS WHILE UNDER THE PROTECTION OF CHAPTER ELEVEN COMPANY OFFICIALS DIDN'T RETURN TELEPHONE CALLS SEEKING DETAILS IN OCTOBER THE COMPANY ANNOUNCED THE RESIGNATION OF GEORGE W. SANBORN ITS PRESIDENT AND CHIEF EXECUTIVE CITING MEDICAL REASONS THE COMPANY ALSO SAID THAT TO ADDRESS LIQUIDITY AND CASH FLOW ISSUES IT WAS HOLDING INFORMATIONAL DISCUSSIONS AND DUE DILIGENCE MEETINGS WITH UNIDENTIFIED THIRD PARTIES INTERESTED IN BUYING CERTAIN ASSETS INCLUDING DIVISIONS BUSINESS UNITS AND REAL ESTATE NO DEFINITIVE AGREEMENTS HAD BEEN REACHED IT SAID QUOTE IT'S NOT THAT WE DISCRIMINATE AGAINST ANY BODY OR GROUP BUT WE ARE VERY PARTIAL TO OUR OWN QUOTE KENNEDY J. GILLY A VICE PRESIDENT OF THE BOSTON CLUB EXPLAINING IN A NINETEEN NINETY THREE DEPOSITION WHY THE CLUB HAS ADMITTED NEITHER WOMEN NOR BLACKS NEW ORLEANS HENRY MENTZ MAY HAVE TO CHOOSE BETWEEN HIS SEAT IN A PRIVATE CLUB AND HIS SEAT ON THE FEDERAL BENCH A LEGAL CHALLENGE THAT SEEKS TO FORCE SUCH A CHOICE PLACES THE COURTLY SOCIABLE JUDGE AT THE CENTER OF THE LONG RUNNING CONTROVERSY OVER THE INFLUENCE OF PRIVATE CLUBS ARE THEY MERELY HARMLESS SOCIAL AFFILIATIONS OF LIKE MINDED INDIVIDUALS OR ARE THEY BASTIONS OF DISCRIMINATION AND POWER USED BY THEIR MEMBERS TO FURTHER BUSINESS AND POLITICAL INTERESTS TO THE DISADVANTAGE OF OTHERS IMMEDIATELY AT ISSUE IS JUDGE MENTZ'S MEMBERSHIP IN THE ONE HUNDRED FIFTY THREE YEAR OLD BOSTON CLUB AN ALL WHITE ALL MALE LUNCHEON CLUB THE BOSTON CLUB IS ONE OF FOUR CLUBS HERE THAT THE NEW ORLEANS HUMAN RELATIONS COMMISSION WANTS TO PROBE FOR POSSIBLE VIOLATIONS OF A CITY ANTIDISCRIMINATION ORDINANCE FOLLOWING COMPLAINTS LAST YEAR BY A BLACK BUSINESSMAN THAT THE CLUBS HAD SNUBBED HIM THE JUDGE'S AFFILIATION CAME TO LIGHT WHEN THE BOSTON CLUB'S SECRET MEMBERSHIP ROSTER WAS INTRODUCED IN THE PRETRIAL PHASE OF A LAWSUIT BY THE CLUBS CHALLENGING THE HUMAN RELATIONS COMMISSION'S AUTHORITY ALSO ON THE LIST WHICH WAS LEAKED TO LAWYERS AROUND THE CITY WERE NUMEROUS SENIOR PARTNERS IN TWO LAW FIRMS REPRESENTING TRAVELERS INSURANCE COMPANY THE DISCLOSURES PROVED ESPECIALLY UNSETTLING TO TWO NEW ORLEANS BROTHERS JOHN AND ROBERT LILJEBERG WEALTHY COMBATIVE OWNERS OF A LOCAL PHARMACY EMPIRE WHO HAD BEEN LOCKED IN LONG COSTLY FEDERAL LITIGATION WITH TRAVELERS IN JUDGE MENTZ'S COURT THE LILJEBERGS SEIZED ON THE BOSTON CLUB CONNECTIONS TO HELP EXPLAIN WHAT THEY CONSIDERED A STRING OF UNFAVORABLE AND SEEMINGLY PUNITIVE RULINGS BY JUDGE MENTZ THAT AWARDED AN ESTIMATED FOUR MILLION DOLLARS IN INTEREST AND PENALTIES TO TRAVELERS AFTER A JURY FOUND THAT THE LILJEBERGS HAD RENEGED ON LONGSTANDING LEASE OBLIGATIONS THROUGH THEIR LAWYER KENNETH FONTE THEY PROMPTLY FILED MOTIONS IN THE CASE ASKING THAT THE JUDGMENTS BE SET ASIDE AND THAT JUDGE MENTZ BE DISQUALIFIED FROM REHEARING THE CASE TO TOP IT OFF THE LILJEBERGS' LAWYER MR. FONTE ALSO FILED A FORMAL COMPLAINT TO JUDGE MENTZ'S COURT SUPERIORS IN THE EASTERN DISTRICT OF LOUISIANA HERE ALLEGING THAT THE JUDGE'S BOSTON CLUB MEMBERSHIP VIOLATES A PROVISION OF A STRICT TWO YEAR OLD FEDERAL ETHICS LAW THAT BANS JURISTS FROM BELONGING TO CLUBS THAT PRACTICE INVIDIOUS DISCRIMINATION JUDGE MENTZ IN RULINGS HANDED DOWN LAST MONTH DECLINED EITHER TO STEP ASIDE OR VACATE THE RULINGS INSTEAD IN A REFLECTION OF HOW NASTY THE FIGHT HAS BECOME HE FINED MR. FONTE ABOUT TWENTY THOUSAND DOLLARS ACCUSING HIM OF UNTRUTHS AND CONTRADICTORY STATEMENTS IN HIS EFFORTS TO GET JUDGE MENTZ DISQUALIFIED AND THE VERDICTS OVERTURNED THE LILJEBERGS HAVE APPEALED THE RULINGS THOUGH THE BOSTON CLUB MEMBERSHIPS ARE THE HEART OF THEIR CASE THE LILJEBERGS IN COURT PAPERS MAKE OTHER ASSERTIONS AMONG THEM THAT JUDGE MENTZ HAD PERSONAL OR POLITICAL RELATIONSHIPS OR CONTACT WITH OTHER LAWYERS DIRECTLY OR OBLIQUELY CONNECTED TO TRAVELERS MR. FONTE SAYS JUDGE MENTZ STUNG BY THE LILJEBERGS' CHALLENGES NOW IS BENT ON CONDUCTING A JUDICIAL INQUISITION AGAINST HIM AND HIS CLIENTS SAYS JOHN LILJEBERG OF JUDGE MENTZ'S CONDUCT IN THE CASE WE ARE NOT GETTING JUSTICE HERE THE WHOLE THING STINKS QUOTE JUDGE MENTZ CITING THE ONGOING LITIGATION DECLINES COMMENT ON OTHER PARTICULARS OF THE CASE BUT IN RULINGS DENYING THE LILJEBERGS' MOTIONS HE REJECTS ALLEGATIONS OF IMPROPRIETY ON ANY FRONT AND HE STATES ADAMANTLY THAT CLUB AFFILIATIONS ARE A NON ISSUE IF EVERY JUDGE RECUSED HIMSELF FROM EVERY CASE BECAUSE OF CLUB AFFILIATIONS YOU WOULD NEVER HAVE CASES HEARD JUDGE MENTZ SAYS IN COURT PAPERS TRAVELERS AND ITS TWO LAW FIRMS HAVE LABELED THE LILJEBERGS' ASSERTIONS DESPICABLE AND OFFENSIVE THE DONNYBROOK OVER PRIVATE CLUBS IS THE SECOND TO ROCK THIS HISTORIC RAMBUNCTIOUS CITY IN THE PAST THREE YEARS A REFLECTION LARGELY OF NEW ORLEANS'S EVER EVOLVING POLITICS IN WHICH BLACKS AND WOMEN ARE PLAYING AN INCREASINGLY IMPORTANT ROLE THUS IT WAS IN NINETEEN NINETY ONE THAT THE NEW ORLEANS CITY COUNCIL SPURRED BY A NINETEEN EIGHTY EIGHT SUPREME COURT DECISION ADOPTED THE ORDINANCE THAT BARRED PRIVATE CLUBS INCLUDING THE CITY'S GENERATIONS OLD MARDI GRAS PARADE CLUBS FROM EXCLUDING MEMBERS BASED ON RACE OR SEX THE LAW MODELED ON A NEW YORK CITY LAW UPHELD BY THE U. S. HIGH COURT APPLIES TO CLUBS WITH MORE THAN SEVENTY FIVE MEMBERS THAT USE PUBLIC STREETS OR FACILITIES OR THAT ALLOW PREMISES TO BE USED FOR BUSINESS PURPOSES THE LAW DOES CONTAIN A PROVISION THAT SOME CALL THE MARDI GRAS LOOPHOLE IT ALLOWS PRIVATE CLUBS TO SWEAR OUT AN OATH THAT THEIR MEMBERSHIP POLICIES ARE NONDISCRIMINATORY WITHOUT HAVING TO REVEAL WHETHER THEY HAVE SEGREGATED MEMBERSHIPS THUS ABSENT AN ACTUAL BIAS COMPLAINT CLUBS ARE ALLOWED TO CONDUCT BUSINESS AS USUAL WITHOUT CITY INTERFERENCE THE PROVISION WAS A LAST MINUTE SOP TO THE INFLUENTIAL CLUBS THAT STAGE THE PARADES WHICH ARE THE CHIEF ENTERTAINMENT DURING THE COMMERCIALLY VITAL MARDI GRAS SEASON HERE THOUGH A FEW FORMERLY WHITE CLUBS ACCEPTED BLACK MEMBERS IN DEFERENCE TO THE ORDINANCE MANY CLUBS HAD THREATENED TO BOYCOTT THE PARADE SEASON IF REQUIRED TO RECAST THEIR MEMBERSHIPS THE ISSUE IS A LITTLE MORE COMPLICATED THAN WHITE BACKLASH THE CARNIVAL CLUBS SOME OF WHICH PREDATE THE CIVIL WAR LONG AGO SPLIT ALONG GENDER AND RACIAL LINES AND SOME BLACK AND WOMEN'S CLUBS ALSO COMPLAINED THEY WOULD BE ADVERSELY AFFECTED BY THE ORDINANCE AND THE LAW HAS PROVED WIDELY UNPOPULAR AMONG WORKING CLASS NEW ORLEANIANS OF ALL RACES WHO VIEW MARDI GRAS AS A VAST MULTICULTURAL STREET PARTY THAT HAD BEEN LARGELY FREE OF RACIAL POLITICS UNTIL THE CITY MOVED AGAINST THE CARNIVAL CLUBS THE AMENDMENT DEFUSED SOME OF THE CONTROVERSY THOUGH TWO OF THE CITY'S LARGEST CLUBS BOTH OF THEM WHITE HAVE DECLINED TO TAKE THE OATH AND NO LONGER PARADE THEY HAVE BEEN REPLACED BY OTHER CLUBS AND THE NINETEEN NINETY FOUR PARADE SEASON WHICH STARTS SUNDAY WILL HAVE A FULL COMPLEMENT OF PARADING CLUBS ABSENT A COMPLAINT LUNCHEON CLUBS LIKE THE BOSTON CLUB WHICH DOESN'T SPONSOR MARDI GRAS ACTIVITIES HAD ESCAPED CITY SCRUTINY UNTIL LAST YEAR THAT'S WHEN CLARENCE HUNT A BLACK CALIFORNIA BUSINESSMAN MOVING TO NEW ORLEANS WROTE TO THE HUMAN RELATIONS COMMISSION THAT HE HAD BEEN TURNED DOWN FOR MEMBERSHIPS IN FOUR CLUBS AFTER IDENTIFYING HIMSELF AS BLACK WHEN THE CITY DEMANDED MEMBERSHIP ROSTERS AND TAX RECORDS TO DETERMINE WHETHER THE CLUBS SERVE A BUSINESS PURPOSE THE CLUBS SUED PRE EMPTIVELY KEVIN O'BRYON A BOSTON CLUB LAWYER DECLINES COMMENT ON THE CASE BUT THE CLUBS IN COURT PAPERS ARGUE THAT THE NEW ORLEANS LAW IS AN UNCONSTITUTIONAL IMPINGEMENT ON CITIZENS' RIGHTS OF FREE ASSOCIATION AND FURTHERMORE DOESN'T APPLY TO THE CLUBS BECAUSE THEY NEITHER USE PUBLIC AMENITIES NOR ALLOW BUSINESS TO BE CONDUCTED ON THEIR PREMISES CITY OFFICIALS DISPUTE THE LATTER CONTENTION THEY CITE TESTIMONY BY SOME CLUB MEMBERS DURING DEPOSITIONS LAST SUMMER THAT THEIR CLUB DUES HAD BEEN PAID BY THEIR COMPANIES SUCH PAYMENTS IN THE CITY'S EYES IMPUTE A BUSINESS FUNCTION THAT BRINGS THE CLUBS UNDER THE ANTIDISCRIMINATION LAW THE CURRENT FEDERAL COURT CASE WHICH ISN'T BEING PRESIDED OVER BY JUDGE MENTZ WILL ULTIMATELY DECIDE THE ISSUE THOUGH LAWYERS ON BOTH SIDES SAY THEY DO NOT EXPECT A QUICK RULING AS TO MR. HUNT'S SNUBBING A BOSTON CLUB INSIDER SAYS THE CALIFORNIA MAN HIS RACE ASIDE WAS TREATED LIKE ANYONE ELSE WHO MIGHT SEEK MEMBERSHIP THE BOSTON CLUB DOESN'T IN FACT ACCEPT APPLICATIONS FROM ANYONE HE SAYS PROSPECTIVE MEMBERS INSTEAD ARE PUT UP FOR MEMBERSHIP BY OTHER MEMBERS AND CAN BE REJECTED IF FIVE OF THE CLUB'S ROUGHLY FIVE HUNDRED SEVENTY FIVE OR SO MEMBERS VOTE TO KEEP THEM OUT LEGAL SCHOLARS ARE WATCHING THE LILJEBERG CASE WITH SOME INTEREST IRONICALLY A NINETEEN EIGHTY EIGHT CASE THAT THE LILJEBERGS LOST SET THE CURRENT SUPREME COURT STANDARD FOR DETERMINING WHETHER A JUDGE'S PERSONAL CONNECTIONS WITH LAWYERS OR LITIGANTS ARE GROUNDS FOR DISQUALIFICATION AS FOR JUDGE MENTZ'S MEMBERSHIP IN THE BOSTON CLUB SOME LEGAL ETHICS EXPERTS THINK HE IS ON SHAKY LEGAL GROUND IF HE INSISTS IN STAYING BOTH IN THE CLUB AND ON THE FEDERAL BENCH UNDER CANON TWO C. OF THE JUDICIAL CODE OF CONDUCT FEDERAL JUDGES MAY NOT BELONG TO ANY CLUB THAT PRACTICES INVIDIOUS DISCRIMINATION DEFINED BROADLY AS ONE THAT ARBITRARILY EXCLUDES FROM MEMBERSHIP ON THE BASIS OF RACE RELIGION SEX OR NATIONAL ORIGIN PERSONS WHO WOULD OTHERWISE BE ADMITTED AN EXCEPTION SAYS STEPHEN GILLERS A LAW PROFESSOR AT NEW YORK UNIVERSITY'S LAW SCHOOL MIGHT BE A JUDGE WHO BELONGS TO A COMMUNITY BEACH CLUB THAT THOUGH IT HAS AN OPEN ADMISSION POLICY HAPPENS TO BE ALL WHITE BECAUSE NO BLACKS LIVE THERE BUT IF A CLUB QUOTE ISN'T GEOGRAPHICALLY SEQUESTERED AND HAS EXCLUSIONARY MEMBERSHIP POLICIES QUOTE A JUDGE'S MEMBERSHIP IS FORBIDDEN HE ADDS NO STATISTICS ARE AVAILABLE ON HOW MANY FEDERAL JUDGES BELONG TO PRIVATE CLUBS THOUGH LEGAL GROUPS THAT TRACK ETHICAL ISSUES BELIEVE THE NUMBERS GIVEN THE CONSTRAINTS OF CANON TWO C. AND THE CONTROVERSY THAT SUCH MEMBERSHIPS ENGENDER ARE SMALL HERE OF THE HANDFUL OF JUDGES THOUGHT TO BELONG TO SUCH CLUBS MOST ARE IN ORGANIZATIONS THAT HAVE RECENTLY INTEGRATED THEIR MEMBERSHIPS IN LINE WITH THE CITY ORDINANCE LAWYERS SAY IT'S GENERALLY ACCEPTED AS A NECESSARY FORM OF REASSURANCE TODAY TO MEMBERS OF MINORITY GROUPS THAT JUDGES HAVE DISENGAGED THEMSELVES FROM THE OLD WHITE MALE FRATERNAL APPROACH OF THINKING ABOUT THE WORLD SAYS GEOFFREY HAZARD JUNIOR PROFESSOR OF LEGAL ETHICS AT THE UNIVERSITY OF PENNSYLVANIA THE MATTER OF JUDGE MENTZ'S BOSTON CLUB MEMBERSHIP BASED ON MR. FONTE'S COMPLAINT IS NOW IN SECRET COMPLEX PROCEEDINGS BEFORE THE CHIEF JUDGE OF THE EASTERN DISTRICT COURT HERE BUT SHOULD THE COURT FIND THAT THE BOSTON CLUB INDEED PRACTICES INVIDIOUS DISCRIMINATION JUDGE MENTZ COULD BE ASKED TO CHOOSE BETWEEN HIS JOB AND HIS CLUB TECHNICALLY FEDERAL JUDGES ARE APPOINTED FOR LIFE AND CAN BE REMOVED ONLY BY IMPEACHMENT BUT JUDGE MENTZ'S SENIOR STATUS ON THE BENCH WHICH HE VOLUNTARILY TOOK SOME TIME AGO MEANS HE CAN AUTOMATICALLY BE RETIRED SHOULD HIS CASELOAD FALL BELOW ONE FOURTH OF THE CASELOAD OF A FULL TIME JUDGE CASES ARE ASSIGNED AT THE DISCRETION OF THE CHIEF JUDGE THUS SHOULD JUDGE MENTZ'S SUPERIOR ADVISE HIM TO STEP DOWN FROM THE BOSTON CLUB AND SHOULD HE DECLINE HE COULD BE EASED INTO RETIREMENT SOME LAWYERS WHO KNOW THE SEVENTY THREE YEAR OLD JUDGE MENTZ AND HAVE PRACTICED BEFORE HIM SAY HE ISN'T GENERALLY CONSIDERED THE KIND OF JURIST WHO WOULD LET SOCIAL CONNECTIONS INTERFERE WITH HIS IMPARTIALITY BUT THEY ALSO SAY THAT HE IS FOND OF HIS SOCIAL STANDING AMONG NEW ORLEANS'S OLD GUARD AND MIGHT BE LOATH TO RELINQUISH HIS MEMBERSHIP IN THE BOSTON CLUB AND A HANDFUL OF OTHER PRIVATE CLUBS GIVEN THAT HE IS SEMIRETIRED AND SITS ON THE BENCH ONLY PART TIME JUDGE MENTZ LIVES WITH HIS WIFE IN A LOVELY OLD HOUSE IN THIS CITY'S GARDEN DISTRICT IN NINETEEN NINETY HE SERVED AS A CHAIRMAN OF THE SOCIAL DIRECTORY OF NEW ORLEANS A PUBLICATION THAT STYLES ITSELF A CHRONICLER OF THE CITY'S ARISTOCRACY OF MERIT THE DIRECTORY LISTED JUDGE MENTZ AS ONE OF THE ACTIVE AND DISTINGUISHED MEMBERS OF THE SOCIAL SCENE AND SLASH OR MEMBERS OF OLD LINE FAMILIES THE JUDGE WELCOMED A REPORTER TO HIS OFFICE RECENTLY AND PROUDLY SHOWED OFF A WALL OF PICTURES OF HIS FAMILY INCLUDING YEARS OLD PHOTOGRAPHS OF TWO DEBUTANTE DAUGHTERS COMING OUT IN NEW ORLEANS SOCIETY JUDGE MENTZ ALSO CASUALLY NOTED HIS MEMBERSHIP IN A LOCAL MASONIC LODGE RELATING THE STORY OF HIS SUPPORT SOME TIME AGO OF A MUSLIM LAWYER WHO WISHED TO JOIN AND WHO TOOK HIS OATH OF MEMBERSHIP ON THE KORAN INSTEAD OF THE BIBLE WHETHER OR NOT JUDGE MENTZ GIVES UP HIS CLUBS FOR THE BENCH IT SEEMS CLEAR THAT THE CLUBS INVOLVED IN THE SUIT AGAINST THE CITY THE BOSTON CLUB THE LOUISIANA CLUB THE PICKWICK CLUB AND THE STRATFORD CLUB WANT TO PRESERVE CONTROL OVER THEIR MEMBERSHIP POLICIES IN A SOMETIMES TESTY EXCHANGE WITH A CITY LAWYER ELEANOR GRAHAM THE BOSTON CLUB'S KENNEDY GILLY MAINTAINED THAT CLUB MEMBERSHIP RULES ARE WRITTEN IN SUCH A WAY AS QUOTE TO PRESERVE THE AMBIENCE OF THE CLUB THE WAY IT WAS HANDED DOWN TO US QUOTE MR. GILLY IS ALSO A PAST PRESIDENT OF THE LOUISIANA CLUB MS. GRAHAM ASKED MR. GILLY IF THERE ARE ANY MEMBERS OF THE LOUISIANA CLUB WHO ARE OF AFRICAN DESCENT I DON'T KNOW OF ANY MEMBERS OF THE LOUISIANA CLUB WHO ARE OF AFRICAN DESCENT MR. GILLY REPLIED BUT HE NOTED THAT UNDER A LOUISIANA LAW LEFT OVER FROM THE STATE'S SEGREGATIONIST PAST ANY TRACEABLE MIXTURE OF NEGRO BLOOD WOULD MAKE SOMEONE IN LAW A NEGRO OR COLORED WHATEVER THE TERM IS IN THE LOUISIANA CIVIL CODE BUT I CERTAINLY HAVEN'T TRACED ANYBODY'S GENEALOGY BACK TO ADAM AND EVE TO DETERMINE WHETHER THERE'S ANY TRACEABLE ADMIXTURE IN A SEPARATE DEPOSITION GEORGE MAYER THE BOSTON CLUB'S PRESIDENT TOOK A SIMILAR TACK IN RESPONSE TO QUESTIONS ABOUT WHETHER THE CLUB HAS EVER ADMITTED A BLACK MEMBER THERE IS NO WAY I CAN ANSWER THAT MR. MAYER REPLIED QUOTE CAN YOU TELL ME WHY QUOTE A CITY ATTORNEY ASKED BECAUSE UNLESS YOU HAVE THE GENEALOGY GOING BACK MANY MANY YEARS THERE JUST ISN'T ANY WAY LATER THE ATTORNEY ASKS WHETHER MR. MAYER HAD EVER MADE JUDGMENTS ABOUT THE RACE OF A PERSON WITHOUT EXAMINING A GENEALOGY NO HE REPLIED WELL I'M MOMENTARILY AT A LOSS BECAUSE I FIND THAT EXTREMELY UNUSUAL ARE THERE ANY BLACK EMPLOYEES IN THE BOSTON CLUB YES MR. MAYER SAID QUOTE HOW DO YOU KNOW QUOTE THEY ARE COLORED HE REPLIED STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY THE BIGGEST PROPERTY AND CASUALTY INSURER IN THE U. S. SAID IT EXPECTS TO RECEIVE ONE HUNDRED FIFTEEN THOUSAND CLAIMS FROM VICTIMS OF LAST WEEK'S EARTHQUAKE IN LOS ANGELES THAT'S FOUR TIMES THE NUMBER THE COMPANY RECEIVED AFTER THE SAN FRANCISCO EARTHQUAKE IN NINETEEN EIGHTY NINE WHEN STATE FARM PAID ONE HUNDRED TWENTY MILLION DOLLARS IN CLAIMS STATE FARM DID NOT SAY HOW MUCH IT EXPECTS TO PAY LOS ANGELES CLAIMANTS SEAN MOONEY AN ECONOMIST WITH THE INSURANCE INFORMATION INSTITUTE SAID THE AVERAGE INSURANCE CLAIM IS LIKELY TO BE SMALLER FROM THE LOS ANGELES QUAKE THAN FROM THE SAN FRANCISCO QUAKE BECAUSE PROPERTY VALUES ARE LOWER IN THE HARDEST HIT AREAS ANOTHER REASON IS MANY OF THE CLAIMS WON'T BE LARGE ENOUGH TO TRIGGER A PAYMENT BECAUSE OF THE HIGH DEDUCTIBLES UNLIKE IN SAN FRANCISCO THE FEDERAL GOVERNMENT IS ENCOURAGING HOMEOWNERS TO FILE CLAIMS EVEN IF THEY DON'T TOP THE DEDUCTIBLE BECAUSE IT WILL SPEED UP PAPERWORK FOR FEDERAL DISASTER ASSISTANCE ANALYSTS EXPECT THE INSURANCE INDUSTRY TO PAY ABOUT ONE POINT FIVE BILLION DOLLARS TO TWO BILLION DOLLARS ON THE EARTHQUAKE STATE FARM WRITES ABOUT TWENTY FIVE PERCENT OF ALL HOMEOWNER POLICIES IN CALIFORNIA BUT IS NOT A MAJOR WRITER OF COMMERCIAL INSURANCE THE INDUSTRY PAID ONE BILLION DOLLARS IN CLAIMS ON THE SAN FRANCISCO EARTHQUAKE IF STATE FARM GETS AS MANY EARTHQUAKE CLAIMS AS IT EXPECTS IT WOULD BE ONE OF THE LARGEST CLAIMS TOTALS IN COMPANY HISTORY ITS BIGGEST CATASTROPHE WAS NINETEEN NINETY TWO'S HURRICANE ANDREW WHEN THE COMPANY RECEIVED ONE HUNDRED SIXTY THOUSAND CLAIMS AND PAID THREE POINT SIX BILLION DOLLARS THE TYPICAL EARTHQUAKE CLAIM IS SMALLER THAN THE TYPICAL HURRICANE CLAIM BECAUSE OF A MUCH HIGHER DEDUCTIBLE QUANTUM CORPORATION MILPITAS CALIFORNIA SAID FISCAL THIRD QUARTER NET INCOME FELL SEVENTY EIGHT PERCENT AS PRICING COMPETITION CONTINUES TO RAVAGE THE COMPUTER DISK DRIVE INDUSTRY QUANTUM EARNED SIX POINT ONE MILLION DOLLARS OR FOURTEEN CENTS A SHARE COMPARED WITH TWENTY EIGHT MILLION DOLLARS OR SIXTY TWO CENTS A SHARE A YEAR EARLIER IN THE PERIOD ENDED JANUARY SECOND SALES WERE FIVE HUNDRED TWENTY THREE MILLION DOLLARS UP FOURTEEN PERCENT FROM FOUR HUNDRED FIFTY NINE POINT THREE MILLION DOLLARS THE COMPANY POINTED OUT THAT NEW PRODUCTS AND OTHER FACTORS HELPED BOOST ITS GROSS MARGINS RISING TO ELEVEN PERCENT FROM TWO PERCENT IN THE SECOND QUARTER ITS BIGGEST CUSTOMER IS APPLE COMPUTER COMPANY WHICH REPRESENTS SEVENTEEN PERCENT OF THE COMPANY'S SALES AND HAS SLASHED PRICES TO BOOST DEMAND FOR ITS PERSONAL COMPUTERS SINCE THE SEPTEMBER THIRTEENTH SIGNING OF THE PEACE ACCORD BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION WESTERN NATIONS HAVE BEEN PLEDGING FINANCIAL SUPPORT FOR THE NEW PALESTINIAN SELF GOVERNING AUTHORITY NOW CONSULTING FIRMS ARE STREAMING INTO JERUSALEM IN THE HOPES OF HELPING THE PALESTINIANS SPEND THEIR EXPECTED WINDFALL WITH TWO BILLION DOLLARS PROMISED TO THE P. L. O. OVER THE NEXT FIVE YEARS IT'S NOT SURPRISING THERE IS A GOLD RUSH MOST EUROPEAN UNION MEMBERS HAVE SPONSORED COMMERCIAL DELEGATIONS HERE AND COMPANIES FROM CANADA JAPAN AND THE ARAB WORLD HAVE ALSO COME CALLING BUT IT IS THE AMERICANS WHO ARE MOST NOTICEABLE TO THE POINT WHERE THE PALESTINIANS JOKE IT IS NO LONGER POSSIBLE TO SIP COFFEE IN THE GARDEN OF THE AMERICAN COLONY HOTEL IN EAST JERUSALEM WITHOUT A U. S. CONSULTANT PULLING UP A CHAIR AND MAKING A BUSINESS PROPOSITION QUOTE THEY ARE OVERWHELMING THE PALESTINIANS' DECISION MAKING APPARTUS QUOTE SAYS ONE WESTERN DIPLOMAT IT'S TURNED INTO A BIT OF A FREE FOR ALL SOME FIRMS SUCH AS CHEMONICS INTERNATIONAL A WASHINGTON D. C. SUBSIDIARY OF ERLY INDUSTRIES OF LOS ANGELES HAVE WORKED BEFORE IN THE OCCUPIED TERRITORIES IT HAS EVALUATED AND MONITORED PROGRAMS OF THE SIX PRIVATE ORGANIZATIONS THAT RECEIVE FUNDING FROM THE U. S. AGENCY FOR INTERNATIONAL DEVELOPMENT THE CONDUIT FOR U. S. ASSISTANCE IN THE WEST BANK AND GAZA STRIP OTHER FIRMS ARE TAKING TENTATIVE FIRST STEPS A PRICE WATERHOUSE PARTNER IN THE COMPANY'S BALTIMORE MARYLAND OFFICE SPENDING A SIX MONTH SABBATICAL WITH THE PHILANTHROPIC RYAN FAMILY FOUNDATION OF BALTIMORE FLEW INTO JERUSALEM IN OCTOBER HE RAN FREE WORKSHOPS IN BETHELEHEM NABLUS JERUSALEM AND GAZA OVER THE COURSE OF A WEEK THE PRICE WATERHOUSE REPRESENTATIVE THE HEAD OF THE RYAN FAMILY FOUNDATION AND A FORMER XEROX CORPORATION OFFICIAL GAVE PRESENTATIONS ON ORGANIZATION PLANNING AND COMMUNICATION TO SIX HUNDRED PALESTINIANS THE ENTHUSIASTIC RESPONSE LED MEMBERS OF PRICE WATERHOUSE'S INTERNATIONAL GROUP AND THE RYAN FOUNDATION TO MEET LAST MONTH WITH USAID OFFICIALS TO SEEK AS MUCH AS SIX MILLION DOLLARS IN FUNDING TO COVER START UP AND INITIAL OPERATING COSTS TO ESTABLISH A MANAGEMENT INSTITUTE IN THE WEST BANK AND GAZA DESIGNED TO TRAIN ABOUT SEVENTEEN THOUSAND PALESTINIANS IN THE COMING THREE YEARS USAID ASSISTANCE TO THE PALESTINIANS HAS GROWN FROM TWELVE MILLION DOLLARS IN FISCAL NINETEEN NINETY TWO TO SEVENTY FIVE MILLION DOLLARS THIS YEAR AND FOR THE FIRST TIME THE AGENCY HAS OPENED ITS ASSISTANCE PROGRAMS TO BIDDING BY CONTRACTORS RATHER THAN DISTRIBUTING THE MONEY EXCLUSIVELY THROUGH PRIVATE VOLUNTARY AND NONGOVERNMENTAL ORGANIZATIONS WHILE EACH OF THE SLATED USAID PROGRAMS IS RELATIVELY SMALL INCLUDING TWENTY FIVE MILLION DOLLARS FOR HOUSING TWENTY TWO MILLION DOLLARS FOR HEALTH ELEVEN MILLION DOLLARS FOR THE PRIVATE SECTOR AND FIFTEEN MILLION DOLLARS FOR MUNICIPAL DEVELOPMENT THEY ARE ALL LONG TERM PROJECTS THAT OFFER CONSULTING FIRMS SUSTAINED REVENUE OVER A PERIOD OF SEVERAL YEARS THEY ALSO OFFER CONSULTANTS A CHANCE TO POSITION THEMSELVES BETTER TO TAKE ADVANTAGE OF THE MYRIAD REGIONAL DEVELOPMENT PROJECTS EXPECTED TO TAKE OFF AFTER ISRAEL AND THE REST OF ITS ARAB NEIGHBORS SIGN PEACE TREATIES AND WHILE U. S. AID MONEY REMAINS THE MAIN MARKET FOR THE CONSULTING FIRMS IT IS CERTAINLY NOT THE ONLY ONE PARTICIPATION IN WORLD BANK FUNDED PROJECTS IS OPEN TO ALL COUNTRIES AND SOME U. S. FIRMS EITHER HAVE EUROPEAN AFFILIATES OR BUSINESS ARRANGEMENTS WITH EUROPEAN COMPANIES THAT WILL ENABLE THEM TO REAP BENEFITS FROM THE SIX HUNDRED MILLION DOLLARS IN AID PLEDGED BY THE EUROPEAN UNION FORMERLY THE EUROPEAN COMMUNITY THE RECENT INFLUX OF CONSULTING FIRMS HAS LED SOME PALESTINIAN BUSINESSMEN TO COMPLAIN THAT THEY ARE BEING PRESSURED TO MAKE HASTY DECISIONS SOME IDEAS PROPOSED BY U. S. CONSULTING FIRMS SUCH AS ONE COMPANY'S SUGGESTION TO SOLVE THE PALESTINIANS' HOUSING CRISIS BY IMPORTING MASSIVE NUMBERS OF MOBILE HOMES HAVE BOLSTERED FEARS THAT FIRMS ARE RUSHING IN PROMOTING PROJECTS WITHOUT TAKING INTO ACCOUNT PALESTINIAN DESIRES AND NEEDS PALESTINIANS FIRST OF ALL WANT TO FUND PROJECTS THAT WILL CREATE NEW JOBS AND DEVELOP THEIR PROFESSIONAL SKILLS BUT THERE ARE ALSO MORE MUNDANE CONSIDERATIONS SUCH AS THE BROILING HOT SUMMERS AND WET WINTERS OF THE MIDDLE EAST WHICH MAKE LIFE IN A MOBILE HOME MOST UNPLEASANT THE PALESTINIANS' BIGGEST COMPLAINT IS THAT THE CONSULTING FIRMS AREN'T COORDINATING THEIR PROJECTS WITH THE PALESTINIAN ECONOMIC COUNCIL FOR DEVELOPMENT AND RECONSTRUCTION OR PECDAR WHICH IS SUPPOSED TO DIRECT THE BULK OF THE AID SPENDING PECDAR HAS COME UNDER RECENT CRITICISM FROM THE DONOR COUNTRIES FOR LACKING ENOUGH MEMBERS WHO HAVE THE NECESSARY FINANCIAL EXPERTISE TO MANAGE HUGE SUMS OF AID MONEY FROM THE WEST THE AMOUNT OF AID IS LIMITED SO WE WANT TO MAKE SURE THAT IT IS GOING TO BE SPENT ON PROJECTS THAT ARE A PRIORITY FOR US SAYS AMIN HADDAD A DIRECTOR OF THE TECHNICAL COMMITTEES ASSIGNED TO WORK ON ALL ASPECTS OF PALESTINIAN SELF RULE ONE CONSULTANT SAYS THE U. S. COMPANIES HAVE GOTTEN A BUM RAP IT'S UNDERSTANDABLE HE SAYS THAT THE PALESTINIANS DON'T WANT OUTSIDERS COMING IN TELLING THEM HOW TO DEVELOP BUT BOTH SIDES NEED EACH OTHER HE ARGUES ADDING THE DONORS AREN'T JUST GOING TO DUMP THE MONEY INTO YASSER ARAFAT'S POCKET JOHN R. OLSEN SIXTY FIVE YEARS OLD A RETIRED SENIOR VICE PRESIDENT FOR STANDARD INSURANCE COMPANY AND JOHN B. STUPPIN SIXTY A PRIVATE INVESTMENT BANKER WERE NAMED TO THE BOARD OF THIS BANK HOLDING COMPANY THE APPOINTMENTS INCREASE THE BOARD TO NINE MEMBERS YOUR DECEMBER NINTH ARTICLE QUOTE NISSAN RECALLS AND DESTROYS SOME MINIVANS QUOTE LEAVES READERS WITH THE IMPRESSION THAT NISSAN'S REACTION TO THE SERIOUS SAFETY HAZARD THESE VANS PRESENT IS AN EXAMPLE OF CORPORATE GOODWILL AND RESPONSIBILITY ON THE CONTRARY NISSAN VAN OWNERS AND THEIR CHILDREN WERE AT RISK OF BEING CAUGHT IN A BURNING VAN WHILE NISSAN FIDDLED WITH BAND AID FIXES THIS IS NOT CORPORATE RESPONSIBILITY THIS IS CUSTOMER ABUSE FOUR FAILED RECALLS TO FIX PROBLEMS THAT CAUSE ENGINE COMPARTMENT FIRES ARE AT LEAST THREE TOO MANY AFTER THE THIRD FAILED RECALL NISSAN FOUGHT OUR PETITION THAT SOUGHT TO FORCE A BUYBACK OF ALL THAT REMAINS OF THE THIRTY THREE THOUSAND VANS NISSAN SOLD IN THIS COUNTRY NISSAN THEN LAUNCHED A SECRET CAMPAIGN TO BUY BACK VANS TOO HEAT DAMAGED TO FIX FOR AS LITTLE AS THREE THOUSAND DOLLARS OR AS MUCH AS NINE THOUSAND DOLLARS FROM THOSE PEOPLE WHO RAISED AN ENORMOUS FUSS ALL THE WHILE NISSAN SERVICE REPRESENTATIVES AND HOTLINE OPERATORS FALSELY TOLD INQUIRING OWNERS THAT THE COMPANY WAS NOT REPURCHASING ANY VANS NISSAN'S EFFORT TO AVOID BEING THE FIRST JAPANESE MANUFACTURER TO REMOVE AN ENTIRE PRODUCT LINE FROM THE HIGHWAY HAS FORCED VAN OWNERS TO BECOME GUINEA PIGS FOR NISSAN'S VARIOUS EXPERIMENTAL FIXES SUBJECTING THESE PEOPLE TO THE CONTINUED RISK OF FIRE THE VANS ARE SO PROBLEM PLAGUED THAT THEIR RESALE VALUE IS LITTLE MORE THAN SCRAP METAL LEAVING MANY OWNERS UPSIDE DOWN IN THEIR CAR LOANS OWING MUCH MORE THAN THEIR VAN IS WORTH NISSAN ACKNOWLEDGES THAT ITS FOURTH RECALL WILL PROBABLY ALSO FAIL BY INSTALLING A COMPLEX AUDIBLE AND VISUAL WARNING SYSTEM AND A GOVERNOR THAT LIMITS THE SPEED OF AN OVERHEATED VAN TO THIRTY SIX MILES PER HOUR AND WHAT WILL HAPPEN THEN WILL NISSAN SLAP ON ANOTHER BAND AID RALPH HOAR AND ASSOCIATES IS A VEHICLE SAFETY RESEARCH FIRM THAT FIRST PETITIONED FOR REPURCHASE OF THE MINIVANS HEWLETT PACKARD COMPANY AND PACIFIC TELESIS GROUP SAID THEY WOULD JOINTLY BUILD AN INTERACTIVE VIDEO SYSTEM THAT WILL ENABLE CONSUMERS IN CERTAIN CALIFORNIA MARKETS TO ORDER MOVIES AND OTHER PROGRAMS BY EARLY NEXT YEAR UNDER AN AGREEMENT HEWLETT PACKARD BASED IN PALO ALTO CALIFORNIA WILL PROVIDE LARGE VIDEO SERVERS TO WAREHOUSE DATA AND TRANSMIT IT TO HOMES WHILE PACIFIC TELESIS VIDEO SERVICES A UNIT OF SAN FRANCISCO BASED PACIFIC TELESIS WILL OFFER ITS QUOTE ON DEMAND QUOTE SERVICES TO CUSTOMERS IN SAN DIEGO ORANGE COUNTY LOS ANGELES AND SILICON VALLEY INITIALLY SUBSCRIBERS WILL BE ABLE TO CHOOSE FROM A LIST OF HIT MOVIES T. V. PROGRAMS AND SPECIAL EVENTS USING A SIMPLE REMOTE CONTROL DEVICE CUSTOMERS WILL BE ABLE TO STOP REWIND OR FAST FORWARD A PROGRAM JUST AS THEY DO WITH A VIDEOCASSETTE RECORDER TERMS OF THE DEAL WERE NOT DISCLOSED WITH LESS THAN THREE WEEKS TO GO BEFORE THE OLYMPIC FLAME IS LIT IN LILLEHAMMER NORWAY THE C. B. S. NETWORK IS QUIETLY BOASTING ABOUT WHAT IT CONSIDERS ITS OWN OLYMPIAN FEAT THE WINTER GAMES ARE VIRTUALLY SOLD OUT AT HEALTHY PRICES RANGING FROM TWO HUNDRED FIFTY THOUSAND DOLLARS TO THREE HUNDRED FIFTY THOUSAND DOLLARS FOR EACH THIRTY SECOND SPOT IT'S QUITE A DIFFERENT SITUATION FROM TWO YEARS AGO WHEN C. B. S. BROADCAST THE WINTER OLYMPICS FROM ALBERTVILLE FRANCE THEN C. B. S. SCRAMBLED TO SELL ADVERTISING AT A DISCOUNT WITH SOME SPOTS GOING FOR LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS THIS TIME AROUND C. B. S. IS GUARANTEEING ADVERTISERS AN AVERAGE AUDIENCE RATING OF EIGHTEEN POINT SIX PERCENT IN NINETEEN NINETY TWO THE NETWORK WAS TOO CONSERVATIVE ABOUT THE AUDIENCE THAT IT GUARANTEED ESTIMATING SEVENTEEN POINT ONE PERCENT OF U. S. HOMES WITH T. V. SETS WOULD WATCH IN THE END C. B. S. HAD AVERAGE RATINGS OF EIGHTEEN POINT SEVEN PERCENT QUOTE IT WAS AN AWFUL CLIMATE IN NINETEEN NINETY TWO FOR ADVERTISING QUOTE SAYS JOSEPH D. ABRUZZESE C. B. S. SENIOR VICE PRESIDENT OF TELEVISION NETWORK SALES YET DESPITE THE SLUGGISH AD SALES HE SAYS THE NETWORK BROKE EVEN ON ITS TWO HUNDRED FORTY THREE MILLION DOLLAR BID FOR U. S. TELEVISION RIGHTS TO THE NINETEEN NINETY TWO WINTER OLYMPICS C. B. S. CHAIRMAN LAURENCE A. TISCH TOLD A NEWS CONFERENCE THIS MONTH THAT THE NETWORK EXPECTS TO MAKE MONEY ON THE NINETEEN NINETY FOUR WINTER OLYMPICS FOR WHICH IT PAID THREE HUNDRED MILLION DOLLARS TO SECURE TELEVISION RIGHTS THAT IS WELCOME NEWS TO EVEN C. B. S.'S BROADCAST NETWORK RIVALS CAPITAL CITIES SLASH A. B. C. AND GENERAL ELECTRIC'S N. B. C. IT SIGNIFIES RENEWED CONFIDENCE THAT THE THREE MAJOR BROADCAST NETWORKS CAN DELIVER LARGE AUDIENCES FOR MAJOR EVENTS C. B. S. IS LUCKY BECAUSE OF A CONFLUENCE OF MARKETING EVENTS SAYS JON MANDEL SENIOR VICE PRESIDENT OF GREY ADVERTISING THE OLYMPICS IS A MARQUEE SPORTS EVENT AT A TIME WHEN THERE ARE FEW SUCH MAJOR AUDIENCE GRABBING PROGRAMS THERE IS NO SUMMER OLYMPICS AS THERE WAS IN NINETEEN NINETY TWO TO SIPHON AD SPENDING ALSO THE ADVERTISING MARKETPLACE IS RECOVERING WITH STRONG NETWORK SALES IN PRIME TIME AND DAYTIME SAYS MR. MANDEL WHAT'S MORE THERE ARE PITCHED MARKETING BATTLES AMONG MAJOR ADVERTISERS THAT FREELY SPEND MILLIONS ON CAMPAIGNS FOR EXAMPLE AMERICAN TELEPHONE AND TELEGRAPH SPRINT AND M. C. I. COMMUNICATIONS ARE ALL ADVERTISING DURING THE OLYMPICS WHICH WILL BE BROADCAST EARLY MORNING PRIME TIME AND LATE LATE NIGHT OVER ONE HUNDRED TWENTY HOURS FROM FEBRUARY TWELFTH TO FEBRUARY TWENTY SEVENTH SIMILARLY AMERICAN EXPRESS AND VISA INTERNATIONAL ALSO ENGAGED IN A NEVER ENDING MARKET SHARE SKIRMISH ARE BOTH ADVERTISING HEAVILY AND FAST FOOD RIVALS MCDONALD'S AND WENDY'S INTERNATIONAL ARE MAJOR SPONSORS A C. B. S. EXECUTIVE SAYS WENDY'S IS OUTSPENDING MCDONALD'S A SPONSOR OF THE WINTER GAMES OTHER MAJOR SPONSORS INCLUDE CHRYSLER WHICH WILL ADVERTISE ITS NEW NEON AUTOMOBILE AND OTHER MODELS FORD MOTOR JOHNSON AND JOHNSON KMART EASTMAN KODAK WALT DISNEY COCA COLA ANHEUSER BUSCH AND V. F. CORPORATION'S LEE JEANS JOHN HANCOCK MUTUAL LIFE INSURANCE NORTHWESTERN MUTUAL LIFE INSURANCE AND PRINCIPAL FINANCIAL GROUP ALSO WILL HAVE A MULTITUDE OF SPOTS ADVERTISING BUT NOT CONSIDERED MAJOR SPONSORS BY THE NETWORK ARE KELLOGG NESTLE AND XEROX REEBOK INTERNATIONAL WILL BREAK ONE OF ITS FIRST CAMPAIGNS FROM LEO BURNETT WHICH REPLACED CHIAT SLASH DAY LAST YEAR ONE REEBOK AD WHICH WAS FILMED IN LOS ANGELES THIS PAST WEEKEND WILL STAR FIGURE SKATER NANCY KERRIGAN WHO IS ON CENTER STAGE AS A RESULT OF LAST MONTH'S ATTACK AGAINST HER ALLEGEDLY CARRIED OUT BY INDIVIDUALS CLOSE TO RIVAL TONYA HARDING WHO ISN'T SET TO APPEAR IN ANY ADS THE REEBOK CAMPAIGN WILL FEATURE WOMEN ATHLETES WHO EXCEL IN THEIR SPORTS INCLUDING SANDRA FARMER PATRICK WHO COMPETES IN THE FOUR HUNDRED METER HURDLES JULIE FOUDY CAPTAIN OF THE WORLD CUP CHAMPIONSHIP SOCCER TEAM AND NANCY FEIGEN WHOM REEBOK DESCRIBES AS THE NUMBER ONE RANKED ROCK CLIMBER INTERNATIONAL BUSINESS MACHINES IS SCHEDULED TO MAKE ITS FIRST OLYMPICS ADVERTISING WITH A NEW IMAGE CAMPAIGN TIED DIRECTLY TO THE OLYMPICS FROM WELLS RICH GREENE B. D. D. P. THE AGENCY IS SILENT ON DETAILS ALTHOUGH ONE AD INDUSTRY EXECUTIVE SAYS THE ADS WILL QUOTE SHOW I. B. M.'S CONTRIBUTION TO MANAGING THE OLYMPIC GAMES QUOTE A FOUR PAGE PULL OUT AD IN FEBRUARY'S ISSUE OF LIFE MAGAZINE MAY FORESHADOW THE TELEVISION SPOTS WITHOUT THE SLIGHTEST EXAGGERATION WE CAN PROUDLY SAY THAT EVERYTHING YOU'LL SEE WILL BE TOUCHED IN SOME WAY BY I. B. M. SAYS THE AD WITH THE HEADLINE GOLD SILVER BRONZE AND BLUE I. B. M.'S NICKNAME IS BIG BLUE THIS TIME AROUND C. B. S.'S MR. ABRUZZESE SAYS THE NETWORK TOOK IN ONE HUNDRED MILLION DOLLARS FROM ADVERTISERS WHO WEREN'T IN THE NINETEEN NINETY TWO GAMES BUT SOME COMPANIES THAT ADVERTISED IN THE NINETEEN NINETY TWO WINTER GAMES ARE CHOOSING TO SIT OUT THIS YEAR'S OLYMPICS AMONG THE NO SHOWS MILLER BREWING MARS AND THE U. S. POSTAL SERVICE ALREADY C. B. S.'S MR. ABRUZZESE SAYS HE IS GETTING CALLS FROM ADVERTISERS INTERESTED IN SPONSORING THE NINETEEN NINETY EIGHT WINTER GAMES IN NAGANO JAPAN C. B. S. CERTAINLY WILL NEED ALL OF THE ADVERTISERS IT CAN GET THEN BECAUSE THE NETWORK WILL PAY THREE HUNDRED SEVENTY FIVE MILLION DOLLARS FOR THE TELEVISION RIGHTS HAS MR. ABRUZZESE CLOSED ANY DEALS YET FOR FOUR YEARS FROM NOW NO HE RESPONDS BUT IT ISN'T BECAUSE HE DOESN'T WANT TO WE ARE PROHIBITED FROM SIGNING DEALS HE SAYS UNTIL THE CORPORATE SPONSORS ARE DECIDED BURGER KING A UNIT OF GRAND METROPOLITAN TODAY IS EXPECTED TO NAME THREE FINALISTS IN A REVIEW FOR THE CREATIVE PORTION OF ITS ESTIMATED ONE HUNDRED MILLION DOLLAR PLUS NATIONAL ACCOUNT THEY ARE AMMIRATI AND PURIS NEW YORK INTERPUBLIC GROUP'S LOWE AND PARTNERS SLASH S. M. S. NEW YORK AND EURO R. S. C. G.'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER BURGER KING DECLINED TO COMMENT AGENCY OFFICIALS COULDN'T BE REACHED ELIMINATED FROM THE COMPETITION IS SAATCHI AND SAATCHI COMPANY'S SAATCHI AND SAATCHI ADVERTISING NEW YORK WHICH HAS A FOOT IN THE DOOR WITH THE CLIENT CREATING ITS CHILDREN'S ADVERTISING ALSO ELIMINATED W. P. P. GROUP'S OGILVY AND MATHER AN AGENCY THAT SOME OBSERVERS CONSIDERED HAD AN INSIDE TRACK BECAUSE OF ITS RECENT EXPERIENCE WITH HARDEE'S FOOD SYSTEMS THE INCUMBENT ON THE ACCOUNT D'ARCY MASIUS BENTON AND BOWLES NEW YORK IS COMPETING FOR THE MEDIA PORTION OF THE BUSINESS NUTRI SLASH SYSTEM INCORPORATED HORSHAM PENNSYLVANIA SAID IT SELECTED GRAY KIRK SLASH VANSANT BALTIMORE TO CREATE ADS FOR THE LAUNCH OF A NEW WELLNESS PROGRAM IT PLANS AT NUTRI SLASH SYSTEM CENTERS THIS SPRING NUTRI SLASH SYSTEM SPENDS ABOUT THIRTY MILLION DOLLARS A YEAR ON ADVERTISING NUTRI SLASH SYSTEM CAME OUT OF BANKRUPTCY COURT PROTECTION LAST MONTH IT HAD HIRED THE PHILADELPHIA OFFICE OF FOOTE CONE AND BELDING COMMUNICATIONS LAST FALL FOR A WEIGHT LOSS CAMPAIGN THAT AGENCY ALSO PITCHED FOR THE NEW ASSIGNMENT NUTRI SLASH SYSTEM SAID IT DECLINED TO NAME THE OTHER CONTENDERS ACCOUNT FIRST INTERSTATE BANCORP LOS ANGELES SAID IT SELECTED HAL RINEY AND PARTNERS SAN FRANCISCO FOR ITS ESTIMATED TWENTY FIVE MILLION DOLLARS TO THIRTY MILLION DOLLAR ACCOUNT THE ACCOUNT WAS HANDLED BY CAMPBELL AND WAGMAN LOS ANGELES IN THE REVIEW'S FINAL ROUND RINEY BESTED THE LOS ANGELES OFFICE OF OMNICOM GROUP'S D. D. B. NEEDHAM REVIEW MINOLTA CORPORATION A RAMSEY N. J. UNIT OF MINOLTA CAMERA COMPANY HAS PUT ITS ESTIMATED TEN MILLION DOLLARS TO FIFTEEN MILLION DOLLAR AD ACCOUNT INTO REVIEW A MINOLTA SPOKESMAN SAID CONFIRMING REPORTS IN TRADE PUBLICATIONS SAATCHI AND SAATCHI'S C. M. E. KHBB IS THE INCUMBENT ON THE PHOTOGRAPHIC PORTION OF THE BUSINESS BOZELL A UNIT OF BOZELL JACOBS KENYON AND ECKHARDT HANDLES THE OFFICE COPIER AND BUSINESS EQUIPMENT PORTION CONSULTANT ALAN ACHENBAUM IS CONDUCTING THE SEARCH MCCANN INTERPUBLIC GROUP'S MCCANN ERICKSON ACQUIRED ONE HUNDRED PERCENT OF MCCANN ERICKSON HAKUHODO THE JAPANESE AGENCY IT HAD OPERATED IN A JOINT VENTURE WITH THE JAPANESE AD AGENCY HAKUHODO MCCANN PREVIOUSLY OWNED FIFTY ONE PERCENT AND HAKUHODO FORTY NINE PERCENT THE AGENCY WITH ESTIMATED BILLINGS OF SEVEN HUNDRED FIFTY MILLION DOLLARS IS DROPPING HAKUHODO FROM ITS NAME DON EDWARDS THE DEAN OF THE CALIFORNIA DELEGATION AND A POWERFUL VOICE FOR CIVIL LIBERTIES AS THE RANKING DEMOCRAT ON THE HOUSE JUDICIARY COMMITTEE IS EXPECTED TO RETIRE AT THE END OF THIS YEAR AFTER MORE THAN THREE DECADES IN CONGRESS THE SEVENTY NINE YEAR OLD LAWMAKER HAS SCHEDULED A NEWS CONFERENCE FOR THIS MORNING IN HIS SAN JOSE DISTRICT HIS RETIREMENT IS THE MOST SIGNIFICANT IN A SERIES OF DEPARTURES THAT WILL DRASTICALLY ALTER THE COMMITTEE'S HIERARCHY ONLY YESTERDAY REPRESENTATIVE BILL HUGHES D. N. J. CHAIRMAN OF THE SUBCOMMITTEE ON INTELLECTUAL PROPERTY AND JUDICIAL ADMINISTRATION ANNOUNCED HIS RETIREMENT AND REPRESENTATIVE ROMANO MAZZOLI D. KENTUCKY A SUBCOMMITTEE CHAIRMAN WHO GAVE HIS NAME TO LANDMARK IMMIGRATION LEGISLATION IN THE NINETEEN EIGHTIES HAS SAID HE WON'T SEEK ANOTHER TERM THE MOVES WILL EXPAND THE INFLUENCE OF REPRESENTATIVE MIKE SYNAR AN OUTSPOKEN POPULIST STYLED OKLAHOMAN WHO AT JUST FORTY FOUR YEARS OLD NEXT YEAR WILL RANK BEHIND ONLY CHAIRMAN JACK BROOKS OF TEXAS AND JOHN CONYERS OF MICHIGAN WITH MAJOR TELECOMMUNICATIONS LEGISLATION PENDING MR. SYNAR WILL HAVE POWER BASES IN BOTH THE JUDICIARY AND ENERGY AND COMMERCE COMMITTEES MORE BROADLY HE REFLECTS A GENERATION OF YOUNGER MEMBERS RISING AMID THE UPHEAVAL IN CONGRESS BY CONTRAST MR. EDWARDS'S REASONED DIGNIFIED STYLE HAS LONG SET HIM APART IN THE HOUSE AND DESPITE HIS LIBERAL IMAGE TODAY HE WAS A FEDERAL BUREAU OF INVESTIGATION AGENT AS A YOUNG MAN AND CAME TO DEMOCRATIC POLITICS ONLY AFTER A CAREER IN BUSINESS AS CHAIRMAN OF THE CIVIL AND CONSTITUTIONAL RIGHTS SUBCOMMITTEE HE WAS MAJOR PLAYER IN CIVIL RIGHTS DISPUTES WITH THE REAGAN AND BUSH ADMINISTRATIONS AND MORE RECENTLY HAS BEEN A STRONG PROPONENT OF ABORTION RIGHTS LEGISLATION AMERICAN EXPRESS COMPANY SAID IT WILL SPEND MORE THAN ONE BILLION DOLLARS TO SPIN OFF ITS LEHMAN BROTHERS INCORPORATED INVESTMENT BANKING UNIT AS A PUBLICLY TRADED COMPANY TO PREPARE LEHMAN FOR PUBLIC OWNERSHIP AMERICAN EXPRESS WILL PUMP MONEY INTO LEHMAN BY BUYING EIGHT HUNDRED NINETY MILLION DOLLARS IN NEWLY CREATED LEHMAN COMMON STOCK AND TWO HUNDRED MILLION DOLLARS IN NEW LEHMAN PREFERRED SHARES THE STOCK PURCHASES ARE INTENDED TO PROVIDE A CAPITAL INFUSION THAT WILL PUT THE NEWLY INDEPENDENT LEHMAN WHICH HAS BEEN OWNED BY AMERICAN EXPRESS FOR NEARLY A DECADE ON A SOUND FINANCIAL FOOTING BUT THE INFUSION IS DOUBLE THE AMOUNT AMERICAN EXPRESS EXECUTIVES TOLD ANALYSTS LAST SUMMER THAT IT WOULD TAKE TO SHORE UP LEHMAN'S BALANCE SHEET REFLECTING DEMANDS BY RATING AGENCIES WHEN COMPLETED IN APRIL THE LONG EXPECTED SPINOFF WILL REDUCE AMERICAN EXPRESS'S EQUITY BY TWO POINT FOUR BILLION DOLLARS BASED ON THE COMPANY'S OWN VALUATION OF LEHMAN AND THE COST OF THE SHARE PURCHASES AMERICAN EXPRESS WILL DISTRIBUTE THE LEHMAN COMMON SHARES TO AMERICAN EXPRESS SHAREHOLDERS AS A TAX FREE DIVIDEND AMERICAN EXPRESS WILL RETAIN THE PREFERRED SHARES BUT THE SPINOFF WILL HAVE NO EFFECT ON AMERICAN EXPRESS'S EARNINGS YESTERDAY THE COMPANY REPORTED RECORD NINETEEN NINETY THREE PROFIT HELPED IN PART BY A LARGE ONE TIME GAIN RELATED TO THE SALE OF ANOTHER UNIT THE EXPENSIVE SPINOFF COMPLETES A NEARLY TWO YEAR PLAN TO SHED UNITS NOT CONSIDERED STRATEGIC TO THE COMPANY'S FOCUS ON PERSONAL FINANCIAL SERVICES SINCE NINETEEN EIGHTY ONE AMERICAN EXPRESS HAD SPENT ALMOST FOUR BILLION DOLLARS ON VARIOUS ILL CONCEIVED EFFORTS TO BECOME A FULL SERVICE FINANCIAL SUPERMARKET BUT MERCHANT BANKING FAILURES SUCH AS A SOURED BRIDGE LOAN TO PRIME COMPUTER INCORPORATED AND THE VOLATILITY THAT IS PART OF THE SECURITIES BUSINESS CONVINCED THE COMPANY THAT IT SHOULD GET OFF WALL STREET AND BACK ONTO MAIN STREET THE SHIFT IN STRATEGY ACCELERATED AFTER HARVEY GOLUB WAS NAMED CHIEF EXECUTIVE OFFICER ONE YEAR AGO TODAY QUOTE ON ONE HAND IT DOES TAKE AWAY FROM AMERICAN EXPRESS'S EQUITY BASE QUOTE SAID JOHN KEEFE AN INDEPENDENT FINANCIAL ANALYST BUT LEHMAN WOULD HAVE THREATENED THE COMPANY AND ITS CREDIT RATING IN THE NEXT DOWNTURN IN THE SECURITIES BUSINESS IT'S A VERY GOOD IDEA AMERICAN EXPRESS WILL HAVE A CHANCE TO EARN BACK SOME OF ITS SPINOFF EXPENSES THE SPINOFF ARRANGEMENT CALLS FOR THE HUGE CHARGE CARD COMPANY TO RECEIVE FIFTY PERCENT OF ANY LEHMAN BROTHERS NET INCOME IN EXCESS OF FOUR HUNDRED MILLION DOLLARS A YEAR NOT TO EXCEED FIFTY MILLION DOLLARS OR SO A YEAR OR CUMULATIVELY FOUR HUNDRED MILLION DOLLARS OVER AN EIGHT YEAR PERIOD FOR LEHMAN FOUNDED IN ONE THOUSAND EIGHT HUNDRED FIFTY THE BIGGEST BENEFIT IS THAT THE COMPANY RANKED THIRD WORLD WIDE AS AN UNDERWRITER OF STOCK AND BOND OFFERINGS IS ONCE AGAIN FREE IT HAD NINE YEARS OF OFTEN ROCKY RELATIONS WITH ITS CORPORATE PARENT AND WITH ITS FORMER PARTNER SHEARSON AMONG OTHER IRRITANTS LEHMAN OFFICIALS RESENTED BEING SADDLED WITH LEGAL TIES TO TROUBLED SHEARSON LIMITED PARTNERSHIPS SHEARSON AND LEHMAN WHICH AMERICAN EXPRESS HAD MELDED INTO AN UNWIELDY PARTNERSHIP ANNOUNCED IN MARCH NINETEEN NINETY THREE THAT THEY WERE GOING THEIR SEPARATE WAYS THE TWO HAD BEEN OPERATING AS SEPARATE ENTITIES SINCE NINETEEN NINETY WHEN LEHMAN REVIVED ITS NAME ON A SEPARATE DIVISION SHEARSON JOINED TRAVELERS INCORPORATED'S SMITH BARNEY HARRIS UPHAM AND COMPANY BROKERAGE UNIT IN JULY LEHMAN MANAGEMENT WILL PARTICIPATE IN AND PROBABLY PROFIT FROM THE STOCK OFFERING LAST SEPTEMBER IN LIEU OF THEIR NINETEEN NINETY THREE BONUSES THE TOP NINE HUNDRED OR SO SENIOR MANAGERS WERE OFFERED SHARES IN A SIXTY MILLION DOLLAR PRIVATE PLACEMENT OF PHANTOM LEHMAN STOCK LEHMAN VALUED ITS PHANTOM SHARES AT TEN DOLLARS EACH AND WILL CONVERT THEM ONE FOR ONE INTO REAL SHARES PROBABLY AT A HIGHER PRICE WHEN THE COMPANY'S SHARES ARE DISTRIBUTED TO SHAREHOLDERS AN EMPLOYEE STOCK OWNERSHIP PLAN WILL PUMP ANOTHER ONE HUNDRED MILLION DOLLARS INTO LEHMAN THE CLOCK WAS TICKING FOR AMERICAN EXPRESS LEHMAN WAS ANXIOUS TO GO PUBLIC BEFORE THE END OF THE ALREADY THREE YEAR OLD UNDERWRITING BOOM AS LEHMAN PREPARES TO FLY SOLO MONEY MANAGERS ANALYSTS AND EVEN RIVALS SAY WHAT THE COMPANY HAS GOING FOR IT IS AN ENVIED REPUTATION FOR CLIENT SERVICE AND A VENERABLE NAME THAT STILL CARRIES TREMENDOUS CACHET ON WALL STREET OTHER ASSETS NINE THOUSAND EMPLOYEES A TONY HEADQUARTERS IN NEW YORK'S WORLD FINANCIAL CENTER WELL RESPECTED FIXED INCOME AND RESEARCH DIVISIONS AND A GLOBAL DERIVATIVES BUSINESS THAT'S GROWING RAPIDLY BUT THE FIRM LOST THE HUGE SHEARSON NETWORK OF STOCKBROKERS A MAJOR SELLING POINT TO CLIENTS IT HAS HAD STORMY RELATIONSHIPS WITH OTHER FIRMS ON THE STREET AND HAS BEEN FAULTED IN THE PAST FOR BUYING MARKET SHARE THROUGH PREDATORY PRICING SO FAR IT HASN'T HAD THE CASH TO PLAY IN THE BIG LEAGUES AT TWO POINT OH FIVE BILLION DOLLARS LEHMAN HAS HALF THE EQUITY CAPITAL OF SOME OF ITS COMPETITORS AMERICAN EXPRESS'S CAPITAL INFUSION WILL BRING LEHMAN'S EQUITY CAPITAL TO THREE POINT THREE BILLION DOLLARS THE MONEY SHOULD HELP LEHMAN MAINTAIN A SINGLE A CREDIT RATING ON A STAND ALONE BASIS AND MAY PAVE THE WAY FOR IT TO CREATE A TRIPLE A RATED DERIVATIVES UNIT A PROVEN BUSINESS GETTER FOR OTHER INVESTMENT BANKS RICHARD FULD JUNIOR WILL REMAIN LEHMAN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER A CHAIRMAN MAY BE NAMED LATER THE COMPANY SAID THREE MAJOR UNITS REMAIN THE SPINOFF OF LEHMAN WILL LEAVE AMERICAN EXPRESS WITH THREE MAJOR OPERATING UNITS TRAVEL RELATED SERVICES I. D. S. FINANCIAL SERVICES AND AMERICAN EXPRESS BANK OUR OVERRIDING OBJECTIVE WILL BE TO MAKE AMERICAN EXPRESS THE WORLD'S MOST RESPECTED SERVICE BRAND SAID MR. GOLUB NOW CHAIRMAN AND CHIEF EXECUTIVE OF AMERICAN EXPRESS IN ADDITION TO THE LEHMAN ANNOUNCEMENT AMERICAN EXPRESS ALSO REPORTED FOURTH QUARTER EARNINGS OF THREE HUNDRED NINETY NINE MILLION DOLLARS OR SEVENTY EIGHT CENTS A SHARE THE EARNINGS WHICH COMPARE WITH A YEAR EARLIER EIGHTY TWO MILLION DOLLARS OR FIFTEEN CENTS A SHARE THAT INCLUDED A TWO HUNDRED SEVENTEEN MILLION DOLLAR RESTRUCTURING CHARGE WERE SLIGHTLY HIGHER THAN WALL STREET EXPECTATIONS OF SEVENTY FOUR CENTS A SHARE THE ANNOUNCEMENTS WERE MADE LATE YESTERDAY AFTERNOON IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AMERICAN EXPRESS CLOSED AT THIRTY ONE DOLLARS AND FIFTY CENTS UP SIXTY TWO POINT FIVE CENTS MOST OF THE COMPANY'S MAJOR OPERATING UNITS HAD BETTER EARNINGS IN THE FOURTH QUARTER THAN THEY DID THE YEAR BEFORE THE COMPANY'S FLAGSHIP TRAVEL RELATED SERVICES UNIT HAD NET INCOME OF TWO HUNDRED THIRTEEN MILLION DOLLARS UP FROM ONE HUNDRED EIGHTY ONE MILLION DOLLARS A YEAR EARLIER I. D. S. FINANCIAL SERVICES HAD NET OF NINETY EIGHT MILLION DOLLARS UP FROM EIGHTY TWO MILLION DOLLARS THE AMERICAN EXPRESS BANK HAD PROFIT OF TWENTY MILLION DOLLARS IN BOTH YEARS TRAVEL RELATED SERVICES' QUARTERLY RESULTS INCLUDED SEVERAL POSITIVE DEVELOPMENTS FOR THE FIRST TIME SINCE THE FOURTH QUARTER OF NINETEEN NINETY ONE THE NUMBER OF ITS OUTSTANDING CARDS INCREASED ON A YEAR OVER YEAR BASIS FROM THIRTY FOUR POINT SEVEN MILLION AT THE END OF NINETEEN NINETY TWO TO THIRTY FIVE POINT FOUR MILLION AT THE END OF LAST YEAR THE INCREASE INCLUDED APPROXIMATELY NINE HUNDRED THOUSAND CARDS THAT WERE ISSUED TO FEDERAL GOVERNMENT EMPLOYEES AS PART OF A PREVIOUSLY ANNOUNCED CONTRACT THE TOTAL AMOUNT OF MONEY BILLED THROUGH CARDS ALSO INCREASED FROM BOTH THE PREVIOUS QUARTER AND THE FOURTH QUARTER OF NINETEEN NINETY TWO AND ALTHOUGH NET REVENUE RECEIVED BY T. R. S. WAS BASICALLY FLAT DUE TO A CONTINUED DECLINE IN THE DISCOUNT PAID BY MERCHANTS EARNINGS WERE HELPED BY IMPROVING CREDIT QUALITY THE FOURTH QUARTER PROVISION FOR LOSSES AND OTHER CLAIMS WAS THREE HUNDRED NINETY FIVE MILLION DOLLARS DOWN FROM FOUR HUNDRED NINETY THREE MILLION DOLLARS A YEAR BEFORE QUOTE THE NUMBERS AREN'T WHAT THEY WERE FIVE YEARS AGO AND THE ENVIRONMENT FOR TRAVEL AND RETAIL SPENDING IS STILL PRETTY TOUGH BUT IT DOES SEEM TO BE IMPROVING QUOTE SAID MR. KEEFE THE INDEPENDENT STOCK ANALYST LEHMAN BROTHERS HAD NET INCOME OF ONE HUNDRED FOURTEEN MILLION DOLLARS COMPARED WITH A ONE HUNDRED SIXTY SIX MILLION DOLLAR LOSS A YEAR BEFORE COGNEX CORPORATION CITING STRONG GROWTH IN JAPAN SAID IT IS COMFORTABLE WITH ANALYSTS' EXPECTATIONS THAT IT WILL POST FOURTH QUARTER NET INCOME OF THREE POINT THREE MILLION DOLLARS OR EIGHTEEN CENTS TO NINETEEN CENTS A SHARE IN THE NINETEEN NINETY TWO FOURTH QUARTER COGNEX HAD NET INCOME OF EIGHT HUNDRED TWENTY ONE THOUSAND DOLLARS OR FIVE CENTS A SHARE AFTER ONE MILLION DOLLARS IN SPECIAL CHARGES ON REVENUE OF SEVEN POINT ONE MILLION DOLLARS THE PER SHARE FIGURE WAS RESTATED TO REFLECT A TWO FOR ONE STOCK SPLIT IN LAST SEPTEMBER ROBERT J. SHILLMAN CHAIRMAN AND CHIEF EXECUTIVE SAID IN AN INTERVIEW THAT REVENUE IN THE LATEST QUARTER WAS ABOUT TWELVE POINT THREE MILLION DOLLARS TO TWELVE POINT FOUR MILLION DOLLARS COGNEX IS A MAKER OF MACHINE QUOTE VISION QUOTE SYSTEMS OR COMPUTERS THAT REPLACE HUMAN VISION IN IDENTIFYING AND INSPECTING PRODUCTS AS THEY ARE MANUFACTURED MR. SHILLMAN SAID REVENUE IN JAPAN JUMPED NINETY FOUR PERCENT IN NINETEEN NINETY THREE AS CUSTOMERS INCREASED THEIR ORDERS IN THE FOURTH QUARTER MORE THAN HALF OF COGNEX'S TOTAL ORDERS WERE BOOKED IN JAPAN FOR THE YEAR FIFTY ONE PERCENT OF ITS ORDERS WERE BOOKED THERE JAPANESE MANUFACTURING INNOVATION SEEMS TO LEAD THE REST OF THE WORLD THE JAPANESE ARE WILLING TO INVEST AND APPLY NEW TECHNOLOGY MORE READILY THAN U. S. MANUFACTURERS MR. SHILLMAN SAID WHILE THE JAPANESE ECONOMY IS STILL UNCERTAIN COGNEX SAID MOST OF ITS CUSTOMERS ARE ORIGINAL EQUIPMENT MANUFACTURERS OF ELECTRONIC SEMICONDUCTOR AND PHARMACEUTICAL PRODUCTS THAT ARE BEING EXPORTED TO U. S. HONG KONG AND EUROPEAN MARKETS COGNEX SAID IT EXPECTS THE JAPANESE MARKET TO CONTINUE TO GROW IN NINETEEN NINETY FOUR SINCE IT SIGNED TWENTY SIX NEW JAPANESE CUSTOMERS LAST YEAR NEW CUSTOMERS TYPICALLY TAKE ABOUT NINE MONTHS TO REACH FULL PRODUCTION THE COMPANY SAID FOR ALL OF NINETEEN NINETY THREE COGNEX SAID IT IS COMFORTABLE WITH ANALYSTS' EXPECTATIONS THAT IT WILL POST EARNINGS OF ELEVEN MILLION DOLLARS OR SIXTY ONE CENTS TO SIXTY THREE CENTS A SHARE ON REVENUE OF FORTY THREE POINT FOUR MILLION DOLLARS TO FORTY THREE POINT FIVE MILLION DOLLARS IN NINETEEN NINETY TWO THE COMPANY HAD NET OF SIX POINT ONE MILLION DOLLARS OR THIRTY FIVE CENTS A SHARE ON REVENUE OF TWENTY EIGHT POINT SIX MILLION DOLLARS JAPAN'S RULING COALITION FACED AN UNCERTAIN FUTURE AFTER LOSING A KEY VOTE HOSOKAWA'S GOVERNMENT WAS THROWN INTO TURMOIL AFTER PARLIAMENT'S REJECTION OF LEGISLATION TO REFORM THE NATION'S POLITICAL SYSTEM THE POLITICAL UNCERTAINTY SPARKED BY FRIDAY'S VOTE COULD HAMPER ECONOMIC POLICIES VISITING TREASURY SECRETARY BENTSEN SAID THAT THE PRIME MINISTER DUE TO MEET CLINTON NEXT MONTH TO SIGN A TRADE AGREEMENT QUOTE OBVIOUSLY HAS HIS WORK CUT OUT FOR HIM QUOTE HOSOKAWA THIS WEEK WILL ATTEMPT TO PUSH THROUGH SOME KIND OF REFORM PACKAGE JAPAN REPORTED THAT ITS MERCHANDISE TRADE SURPLUS INCREASED SIXTEEN PERCENT IN DECEMBER AND GREW TO A RECORD ONE HUNDRED TWENTY POINT FOUR OH BILLION DOLLARS FOR ALL OF NINETEEN NINETY THREE EMBATTLED FEDERAL OFFICIALS INSISTED THEY WERE DOING ALL THEY COULD TO COPE WITH THE DEVASTATION FROM LAST WEEK'S EARTHQUAKE IN LOS ANGELES AS THE DEATH TOLL ROSE TO FIFTY SIX AND DAMAGE ESTIMATES CLIMBED TWO STRONG AFTERSHOCKS ONE MEASURING FOUR POINT OH ON THE RICHTER SCALE JOLTED THE CITY DEPUTY DEFENSE CHIEF PERRY HAS BECOME THE FRONT RUNNER TO SUCCEED DEFENSE SECRETARY ASPIN WHITE HOUSE OFFICIALS SAID PERRY A MILITARY TECHNOLOGIST AND DEFENSE INTELLECTUAL IS FAVORED BY MANY MEMBERS OF THE SENATE AND HOUSE ARMED SERVICES PANELS HOWEVER PERRY MAY BE RELUCTANT TO TAKE THE JOB THE DEFENSE DEPARTMENT HAS CANCELED PLANS TO CONDUCT A CONTROVERSIAL AIDS VACCINE TRIAL AFTER MONTHS OF WRANGLING AMONG FEDERAL AGENCIES OPPOSED TO THE TRIAL OF A VACCINE MADE BY MICROGENESYS THE PENTAGON SAID IT WILL SPEND THE TWENTY MILLION DOLLARS EARMARKED FOR THE TRIAL ON VACCINE THERAPIES AND RESEARCH NATIONAL MEDICAL CARE AGREED TO CORRECT MANUFACTURING PROBLEMS AT ITS FIVE U. S. PRODUCTION FACILITIES THE W. R. GRACE UNIT WHICH IS THE NATION'S BIGGEST PROVIDER OF DIALYSIS SERVICES AND PRODUCTS AGREED TO THE STEP AFTER SHARP PRODDING FROM THE F. D. A. WHICH CITED SAFETY AND QUALITY PROBLEMS THAT NECESSITATED RECALLS AN ASTHMA MEDICATION HAS BEEN LINKED TO HEALTH PROBLEMS ACCORDING TO LAWSUITS THAT HAVE BEEN FILED AND COMPLAINTS MADE TO THE F. D. A. COPLEY PHARMACEUTICAL RECALLED THE DRUG ALBUTEROL THIS MONTH AFTER DISCOVERING SAMPLES CONTAMINATED WITH BACTERIA SIX CHILDREN WERE KILLED BY MORTAR FIRE SATURDAY WHILE THEY WERE SLEDDING IN A SARAJEVO SUBURB THREE OTHER CHILDREN WOUNDED IN THE ATTACK AWAITED POSSIBLE EVACUATION TODAY FOR TREATMENT BOSNIA'S PRIME MINISTER URGED THE U. N. AND THE U. S. TO DEMAND AIR STRIKES AGAINST SERB ARTILLERY POSITIONS SURROUNDING THE CAPITAL CHINA AGREED TO GRANT EXPANDED OPERATING RIGHTS TO FOREIGN BANKS AND THE U. S. SAID IT WILL HELP CHINA IMPROVE THE TOOLS FOR MANAGING ITS ECONOMY TREASURY SECRETARY BENTSEN AND CHINA'S FINANCE MINISTER SAID THAT THE ACCORDS REFLECT A COMMITMENT TO IMPROVE THE NATIONS' TRADE AND INVESTMENT TIES ATTORNEY GENERAL RENO VOWED SHE WOULD DO ALL THAT SHE COULD TO ENSURE THE INDEPENDENCE OF HER SPECIAL COUNSEL'S PROBE INTO CLINTON'S ARKANSAS FINANCIAL DEALINGS RENO SAID SHE HAD TRIED TO MAKE SURE THAT FISKE HAS ALL THE TIME AND MONEY THAT HE NEEDS TO COMPLETE AN INDEPENDENT REPORT ISRAEL SAID IT WAS VERY CLOSE TO BREAKING A PEACE DEADLOCK WITH THE P. L. O. AFTER A MEETING IN OSLO SATURDAY BETWEEN FOREIGN MINISTER PERES AND P. L. O. LEADER ARAFAT MEANWHILE PRIME MINISTER RABIN SAID HE WAS READY FOR DIRECT TALKS ANYWHERE WITH SYRIA'S ASSAD TWO WESTERN ECONOMISTS QUIT AS ADVISERS TO REFORMERS IN THE RUSSIAN GOVERNMENT SAYING THE NEW GOVERNMENT'S POLICIES ARE STRONGLY CONTRARY TO THEIR VIEWS ANDERS ASLUND OF THE STOCKHOLM SCHOOL OF ECONOMICS AND JEFFREY SACHS OF HARVARD UNIVERSITY SUBMITTED THEIR RESIGNATIONS TO PRESIDENT YELTSIN ON FRIDAY HOODED GUNMEN BURST INTO A STREET PARTY ORGANIZED BY A LEFT WING GROUP IN COLOMBIA KILLING AT LEAST THIRTY THREE PEOPLE AND WOUNDING EIGHT THE ARMY SAID THE GUNMEN WERE BELIEVED TO BE MEMBERS OF A RIVAL LEFTIST FACTION RIVAL ARMY FACTIONS CLASHED IN LESOTHO LEAVING AT LEAST TWO SOLDIERS DEAD AND FOUR CIVILIANS WOUNDED ARTILLERY AND MORTAR FIRE WAS TRADED ACROSS MASERU THE CAPITAL OF THE SOUTHERN AFRICAN NATION MOUNTAIN TYCO TOYS INCORPORATED IN AN EFFORT TO CUT COSTS AFTER TWO YEARS OF DISAPPOINTING SALES SAID IT WILL REDUCE EUROPEAN OPERATIONS AND TAKE A TWENTY SIX MILLION DOLLAR FOURTH QUARTER CHARGE THE TOY MAKER SAID IT EXPECTS TO POST A LOSS OF ABOUT FIFTY NINE MILLION DOLLARS SIGNIFICANTLY WIDER THAN THE EIGHT POINT TWO MILLION DOLLAR LOSS IN THE NINETEEN NINETY TWO FOURTH QUARTER SALES WERE ABOUT TWO HUNDRED FIFTY MILLION DOLLARS COMPARED WITH TWO HUNDRED FORTY NINE MILLION DOLLARS A YEAR EARLIER TYCO SAID THE MAKER OF LITTLE MERMAID RADIO CONTROL CARS AND OTHER TOYS HAS BEEN IN A SLUMP FOR THE PAST TWO YEARS AFTER STRINGING TOGETHER A SERIES OF HITS BEFORE THAT THE DISAPPOINTING RESULTS QUOTE REFLECT CONTINUED WEAKNESS IN OUR U. S. INTERNATIONAL AND PLAYTIME UNITS QUOTE SAID RICHARD E. GREY CHAIRMAN AND CHIEF EXECUTIVE OFFICER RESULTS ARE TO BE ANNOUNCED FEBRUARY TENTH TYCO SAID IT WILL COMBINE THE GERMAN OPERATIONS OF ITS MATCHBOX UNIT WITH ITS TYCO GERMANY UNIT A MOVE IT PROJECTS WILL RESULT IN SUBSTANTIAL OPERATING EFFICIENCIES BEGINNING IN NINETEEN NINETY FOUR THE COMPANY SAID IT ALSO PLANS TO SELL ITS YEAR OLD ITALIAN SUBSIDIARY AND THEN SELL TOYS IN ITALY THROUGH DISTRIBUTORS TYCO'S ESTIMATED FOURTH QUARTER NET LOSS WOULD INDICATE THE COMPANY PLANS TO REPORT A FULL YEAR LOSS OF ABOUT SEVENTY MILLION DOLLARS IN NINETEEN NINETY TWO IT EARNED EIGHTEEN MILLION DOLLARS OR SIXTY CENTS A SHARE SALES IN NINETEEN NINETY THREE ARE EXPECTED TO TOTAL SEVEN HUNDRED THIRTY TWO POINT TWO MILLION DOLLARS DOWN FOUR PERCENT FROM SEVEN HUNDRED SIXTY EIGHT POINT SIX MILLION DOLLARS A YEAR EARLIER SEPARATELY THE TOY MAKER NAMED MICHAEL J. LYDEN TO THE NEW POST OF PRESIDENT OF ITS TYCO U. S. BUSINESS UNIT THE ROAD IN THE MONTHS AHEAD WILL BE PRECARIOUS FOR TYCO PREDICTED JILL KRUTICK AN ANALYST FOR SALOMON BROTHERS INCORPORATED THE COMPANY WHICH WAS IN VIOLATION OF SOME CONVENANTS IN ITS BANK AGREEMENTS EXPECTS TO HAVE NEW TERMS IN PLACE BY NEXT MONTH MS. KRUTICK SAID STILL DAVID LEIBOWITZ ANALYST FOR REPUBLIC NEW YORK SECURITIES CORPORATION FORECASTS THAT TYCO WILL REPORT RED INK IN THE FIRST HALF OF NINETEEN NINETY FOUR MR. LEIBOWITZ SAID TYCO INDICATED IN A CONFERENCE CALL WITH ANALYSTS FRIDAY THAT IT PLANS TO RAISE UP TO FIFTY MILLION DOLLARS IN A PREVIOUSLY DISCLOSED PRIVATE EQUITY OFFER LESS THAN WHAT SOME HAD SPECULATED TYCO WOULD NEED TO RAISE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY TYCO CLOSED AT EIGHT POINT SIX TWO FIVE DOLLARS OFF TWENTY FIVE CENTS DIAGNOSTEK INCORPORATED SAID IT EXPECTS TODAY TO REPORT NET INCOME OF ABOUT THREE MILLION DOLLARS OR TWELVE CENTS A SHARE FOR ITS FISCAL THIRD QUARTER WHICH ENDED DECEMBER THIRTY FIRST IN THE YEAR EARLIER PERIOD THE PROVIDER OF PHARMACY SERVICES EARNED ONE POINT THREE MILLION DOLLARS OR FIVE CENTS A SHARES AFTER CHARGES IN AN INTERVIEW BILL BARRON DIAGNOSTEK'S CHIEF FINANCIAL OFFICER SAID REVENUE WAS FLAT IN THE LATEST PERIOD AT ABOUT NINETY NINE POINT NINE MILLION DOLLARS THE IMPROVEMENT REFLECTS IN PART ABOUT TWO MILLION DOLLARS IN CHARGES IN THE YEAR EARLIER PERIOD THOSE CHARGES RELATED TO LOSSES FROM THE SALE OF A MUTUAL FUND INVESTMENT AND LEGAL EXPENSES LINKED TO AN ABORTED MERGER AGREEMENT WITH MEDCO CONTAINMENT SERVICES INCORPORATED DUKE RODRIGUEZ CHIEF OPERATING OFFICER SAID THE COMPANY HAS SEEN A SEVEN PERCENT IMPROVEMENT IN PROFIT MARGINS BY COMBINING THE PURCHASING OF ITS VARIOUS UNITS TO OBTAIN ADDITIONAL DISCOUNTS FROM SUPPLIERS QUOTE WE ARE USING THE FULL LEVERAGE OF OUR COMPANY IN PURCHASING ACTIVITIES QUOTE HE SAID ADDING THAT THE COMPANY HAS SEEN A QUOTE DRAMATIC DROP QUOTE IN THE PRICES IT PAYS FOR MANY GENERIC DRUGS STILL COMPANY EXECUTIVES SAID MUCH OF THE IMPROVEMENT IN MARGINS HAS BEEN OFFSET BY HIGHER OPERATING COSTS RELATED TO EXPANSION AND DIVERSIFICATION MOVES IN OCTOBER DIAGNOSTEK ANNOUNCED THE TWENTY SEVEN MILLION DOLLAR ACQUISITION OF PERFORM COST MANAGEMENT SERVICES INCORPORATED A SCOTTSDALE ARIZONA MANAGER OF PRESCRIPTION CLAIMS ALSO IN OCTOBER THE COMPANY ACQUIRED CHRONITECH HEALTH SERVICES INCORPORATED A CLOSELY HELD SAN FRANCISCO PROVIDER OF PHARMACY AND OTHER MEDICAL SERVICES TO H. I. V. AND AIDS PATIENTS FOR NINE MILLION DOLLARS IN CASH AND STOCK THE COMPANY IS ALSO EXPANDING ITS ALBUQUERQUE FACILITY WITH COST CUTTING PRESSURES ON MARGINS IN THE MAIL ORDER PHARMACY BUSINESS MR. RODRIGUEZ SAID DIAGNOSTEK WILL CONCENTRATE ON PROVIDING PHARMACY MANAGEMENT SERVICES TO MORE HOSPITALS AND MANAGED CARE PROVIDERS JOHN D. LEWIS FORTY FIVE YEARS OLD FORMERLY EXECUTIVE VICE PRESIDENT OF THIS BANKING CONCERN WAS NAMED VICE CHAIRMAN AND A DIRECTOR OF THE COMPANY NORTHWEST AIRLINES AND ITS PARTNER K. L. M. ROYAL DUTCH AIRLINES CUT LEISURE FARES TO EUROPE THE MIDDLE EAST AND AFRICA FOR SPRING SUMMER AND SOME FALL TRAVEL AND OTHER BIG CARRIERS INDICATED THEY WOULD FOLLOW THE FARE CUTS OF AS MUCH AS THIRTY PERCENT WHICH ALSO INCLUDE FLIGHTS TO INDIA ARE UNUSUAL BECAUSE THEY ARE FOR TRAVEL BETWEEN APRIL FIRST AND OCTOBER THIRTY FIRST A PERIOD WHEN TRAVEL BEGINS TO PICK UP AND THEN PEAKS IN THE SUMMER MONTHS QUOTE THIS IS AWFUL EARLY TO DO SOMETHING QUOTE SAID A SPOKESMAN FOR DELTA AIR LINES WHICH HAS THE MOST TRANS ATLANTIC FLIGHTS OF ANY U. S. CARRIER STILL THE DELTA SPOKESMAN SAID THE ATLANTA BASED AIRLINE WILL MAKE OURSELVES COMPETITIVE WITH THE NORTHWEST SLASH K. L. M. CUTS OTHER CARRIERS WITH SIGNIFICANT BUSINESS ABROAD ECHOED THOSE COMMENTS IN CHICAGO THE UNITED AIRLINES UNIT OF U. A. L. CORPORATION SAID IT WOULD BE COMPETITIVE IN MARKETS WHERE IT COMPETES WITH NORTHWEST AND K. L. M. THE AMERICAN AIRLINES UNIT OF A. M. R. CORPORATION FORT WORTH TEXAS SAID IT TOO WOULD BE COMPETITIVE WITH NORTHWEST THE NORTHWEST FARE CUTS AND THE INCLINATION OF OTHERS TO QUICKLY FOLLOW SHOW HOW COMPETITIVE TRANS ATLANTIC FLYING HAS BECOME INDEED THESE LATEST CUTS PICK UP ALMOST WHERE PREVIOUS ONES LEFT OFF LAST FALL MOST OF THE CARRIERS CUT LEISURE FARES TO EUROPE FOR TRAVEL THROUGH MARCH FIFTEENTH NORTHWEST THE SAINT PAUL MINNESOTA UNIT OF NORTHWEST AIRLINES CORPORATION BILLED THE CUTS AS THE FIRST JOINT SALE BETWEEN IT AND K. L. M. AND A CHANCE FOR TRAVELERS TO SEE NEW AND EXCITING AND EXOTIC MARKETS AT A VALUE PRICE THE TWO AIRLINES HAVE SAID THEY PLAN MORE COOPERATIVE EFFORTS AND SAID THIS WAS AN EXAMPLE MANY OF THE ROUTES ESPECIALLY THOSE OUTSIDE EUROPE REQUIRE TRAVEL THROUGH K. L. M.'S HUB IN AMSTERDAM NORTHWEST SAID THE LOWER FARES APPLY TO EIGHTY NINE DESTINATIONS AMONG OTHER RESTRICTIONS THE TICKETS REQUIRE A STAY OVER A SATURDAY NIGHT AND AREN'T REFUNDABLE TICKETS FOR TRAVEL TO INDIA THE MIDDLE EAST AND AFRICA MUST BE PURCHASED BY FEBRUARY ELEVENTH TICKETS TO EUROPE MUST BE PURCHASED BY FEBRUARY TWENTY EIGHTH BUT THE AIRLINE SAID THE BEST BARGAINS ARE AVAILABLE ON TICKETS BOUGHT BY FEBRUARY ELEVENTH AMONG THE TICKET PRICES CITED BY NORTHWEST SIX HUNDRED THIRTY EIGHT DOLLARS FOR ROUND TRIP TRAVEL BETWEEN DETROIT AND PARIS SEVEN HUNDRED FIFTY EIGHT DOLLARS BETWEEN SAN FRANCISCO AND AMSTERDAM EIGHT HUNDRED NINETY EIGHT DOLLARS BETWEEN BOSTON AND TEL AVIV AND ONE THOUSAND TWO HUNDRED FIFTY EIGHT DOLLARS BETWEEN NEW YORK AND BOMBAY INDIA AT DINNER TABLES THE WORLD OVER TOMORROW NIGHT ALL EYES IF NOT ALL APPETITES WILL BE FOCUSED ON A STEAMING HEAP OF SHEEP'S INNARDS OATMEAL ONIONS AND SPICES SERVED FROM A SHEEP'S WELL SCRUBBED STOMACH MEET PERHAPS THE MOST PECULIAR OF SCOTTISH IDIOSYNCRACIES THE HAGGIS AN INDIGENOUS DISH THAT IS THE CULINARY STAR OF TRADITIONAL QUOTE BURNS SUPPERS QUOTE HELD ON THE ANNIVERSARY OF THE BIRTH OF THE SCOTTISH POET ROBERT BURNS AT THE AMERICAN SCOTTISH FOUNDATION'S BLACK TIE SUPPER IN MANHATTAN THE HAGGIS WILL BE PARADED ON A TRAY AROUND ALL THE GUESTS TO THE ACCOMPANIMENT OF BAGPIPES THEN PRESENTED TO A TABLE OF DIGNITARIES AN EMCEE WILL PUBLICLY ADDRESS THE HAGGIS WITH THE BURNS POEM TO A HAGGIS IN WHICH BURNS LAUDS IT AS THE GREAT CHIEFTAN O' THE PUDDIN RACE AT THE POEM'S CLIMAX HE WILL CEREMONIOUSLY THRUST THE DAGGER INTO THE HEART OF THE STOMACH AS IT WERE AND THE HAGGIS WILL BE SPOONED OUT AND SERVED BUT WHILE HAGGIS COMMANDS REVERENCE AMONG SCOTS AND BURNS AFICIONADOS IT IS FAR FROM FLAVOR OF THE MONTH AT THE U. S. DEPARTMENT OF AGRICULTURE BECAUSE THE GOVERNMENT RESTRICTS MEAT PRODUCTS FROM COUNTRIES WITH A RECORD OF BOVINE SPONGIFORM ENCEPHALOPATHY OR MAD COW DISEASE IMPORTING SCOTTISH HAGGIS IS ILLEGAL EVEN TINNED HAGGIS IS VERBOTEN IT WOULDN'T BE MUCH USE AT A BURNS SUPPER ANYWAY YOU CAN'T STICK A DIRK SCOTTISH DAGGER THROUGH A TIN SAYS ALAN BAIN PRESIDENT OF THE AMERICAN SCOTTISH FOUNDATION INSTEAD BURNS SUPPER ORGANIZERS IN AMERICA DEPEND ON DOMESTIC TOIL CHARLES DAVIDSON A SCOTTISH BUTCHER WHO OWNS THE ROYAL MARKET IN KEARNY NEW JERSEY MAKES ABOUT ONE THOUSAND POUNDS OF HAGGIS FOR BURNS SUPPERS NATIONWIDE IT TAKES THREE DAYS TO MAKE A HAGGIS ON THE FIRST DAY MR. DAVIDSON COOKS COOLS AND GRINDS THE INNARDS ON THE SECOND HE MIXES IT WITH ONIONS OATMEAL AND SPECIAL SPICES AND THEN STUFFS THE MIXTURE INTO THE STOMACH ON THE THIRD DAY HE BOILS THE STOMACH FOR AN HOUR AND A HALF TO TWO HOURS THERE IS ONE MAJOR DIFFERENCE BETWEEN MR. DAVIDSON'S HAGGIS AND THE OLD COUNTRY TYPE BACK IN SCOTLAND THEY USE THE PLUCKS THE HEART THE LUNGS THE LIVER AND THE INTESTINES MR. DAVIDSON SAYS QUOTE HERE THE U. S. D. A. WON'T ALLOW YOU TO USE LUNGS I TRY TO PUT MOST OF THE OTHERS IN BUT I USE PRIMARILY LIVER DANISH NEW VEHICLE REGISTRATIONS ROSE SIXTY THREE POINT THREE PERCENT IN DECEMBER TO EIGHT THOUSAND NINE HUNDRED FIFTY SEVEN UNITS FROM FIVE THOUSAND FOUR HUNDRED EIGHTY FIVE UNITS IN DECEMBER NINETEEN NINETY TWO ACCORDING TO DANMARKS STATISTIK THE NATIONAL STATISTICS AGENCY BELL ATLANTIC CORPORATION ASKED THE GOVERNMENT FOR PERMISSION TO PROVIDE LONG DISTANCE SERVICES AS PART OF ITS PROPOSED ACQUISITION OF TELE COMMUNICATIONS INCORPORATED BELL ATLANTIC ALSO REPORTED FLAT EARNINGS FOR THE FOURTH QUARTER AND REITERATED THAT IT WOULD NOT CUT ITS DIVIDEND AS A RESULT OF ITS PENDING T. C. I. TRANSACTION BELL ATLANTIC WILL PAY ELEVEN POINT EIGHT BILLION DOLLARS IN STOCK FOR THE LION'S SHARE OF THE ASSETS OF T. C. I. AND LIBERTY MEDIA CORPORATION BUT THE TOTAL PAYMENTS IN STOCK COULD LATER GROW TO MORE THAN TWENTY BILLION DOLLARS INCLUDING FIVE BILLION DOLLARS FOR T. C. I.'S STAKES IN CABLE PROGRAMMING CHANNELS AND UP TO FOUR BILLION DOLLARS FOR OTHER T. C. I. CABLE SYSTEMS IN ADDITION BELL ATLANTIC WILL TAKE ON NINE POINT SIX BILLION DOLLARS IN EXISTING T. C. I. LIBERTY DEBT THE SEVEN REGIONAL BELL TELEPHONE COMPANIES CURRENTLY ARE PROHIBITED FROM PROVIDING LONG DISTANCE SERVICES AS PART OF THE CONSENT DECREE THAT BROKE UP THE TELEPHONE MONOPOLY A DECADE AGO IN A WAIVER REQUEST SUBMITTED TO THE JUSTICE DEPARTMENT LATE LAST WEEK BELL ATLANTIC SAID IT WANTS AS PART OF ITS T. C. I. DEAL TO PROVIDE LONG DISTANCE SERVICES OUTSIDE ITS TERRITORY AND SATELLITE BEAMED PROGRAMMING TO CUSTOMERS NATIONWIDE UNDER THE CONSENT DECREE THE LATTER ALSO ARE CONSIDERED TO BE LONG DISTANCE SERVICES IN ITS FILING BELL ATLANTIC WARNED THAT THE QUOTE FULL MERGER WILL NOT GO FORWARD QUOTE IF IT DOESN'T GET THE GREEN LIGHT IN TIME TO MEET THE TRANSACTION'S SCHEDULED CLOSING DATE NOW SET FOR JANUARY SECOND NINETEEN NINETY FIVE HOWEVER JOHN THORNE A BELL ATLANTIC VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL IN AN INTERVIEW ON FRIDAY SUGGESTED THE ACQUISITION CAN BE ACCOMPLISHED WITHOUT LONG DISTANCE APPROVAL WE WILL DO THE DEAL COME HELL OR HIGH WATER MR. THORNE SAID THE BABY BELL ALREADY IS BUSY DEVISING DETAILED ATTACK PLANS FOR INVADING THE TELEPHONE TURFS OF ITS FORMER SIBLINGS BRIAN OLIVER PRESIDENT OF BELL ATLANTIC ENTERPRISES BUSINESS DEVELOPMENT SAID IN COMMENTS ACCOMPANYING THE WAIVER REQUEST THAT THE BABY BELL PLANS TO BEGIN CONSTRUCTING TELEPHONE NETWORKS ACROSS THE COUNTRY AS SOON AS THE DEAL IS CLOSED WITH T. C. I. THE LARGEST U. S. CABLE OPERATOR WITHIN TWO AND ONE HALF YEARS MR. OLIVER SAID BELL ATLANTIC EXPECTS TO BE OPERATING FULL SERVICE NETWORKS IN COMPETITION WITH OTHER BELLS IN ABOUT THIRTY CITIES OUTSIDE ITS TERRITORY BY THE END OF THE DECADE MR. OLIVER SAID BELL ATLANTIC WOULD BE PROVIDING COMPETING TELEPHONE SERVICES IN GEOGRAPHIC AREAS WITH MORE THAN FORTY MILLION PEOPLE OUTSIDE ITS CURRENT TERRITORY MR. OLIVER INDICATED BELL ATLANTIC ALREADY HAS A GAME PLAN FOR HOW TO INVADE THE CHICAGO MARKET CURRENTLY DOMINATED BY AMERITECH CORPORATION THE CHICAGO BASED BABY BELL HE SAID T. C. I.'S AFFILIATE TELEPORT HAS FACILITIES IN THE DOWNTOWN AREA THAT COULD BE USED TO INTERCONNECT WITH T. C. I.'S CABLE SYSTEMS IN THE CHICAGO SUBURBS TO PROVIDE COMPETING TELEPHONE SERVICE THROUGHOUT THE METROPOLITAN AREA WE BELIEVE WE CAN PROVIDE CHICAGO AREA CUSTOMERS A BETTER PACKAGE OF PRICE AND SERVICE THAN CAN AMERITECH MR. OLIVER SAID BELL ATLANTIC ALSO MADE AN EIGHT K. FILING WITH THE SECURITIES AND EXCHANGE COMMISSION LAST WEEK IN AN EFFORT TO QUASH RUMORS ON WALL STREET THAT DROVE ITS STOCK DOWN THE COMPANY SAID IN THE FILING THAT RUMORS THAT THE COMPANY INTENDS TO CUT ITS DIVIDEND ARE TOTALLY FALSE BELL ATLANTIC ADDED THAT IT IS THE COMPANY'S INTENTION THAT THE FINAL FINANCIAL TERMS OF THE TRANSACTION WILL NOT DIFFER SIGNIFICANTLY FROM THE LETTER OF INTENT IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BELL ATLANTIC SHARES CLOSED AT FIFTY SIX DOLLARS DOWN THIRTY SEVEN POINT FIVE CENTS EARLIER FRIDAY THE PHILADELPHIA BASED REGIONAL BELL TELEPHONE COMPANY REPORTED FOURTH QUARTER EARNINGS OF THREE HUNDRED THIRTY THREE POINT ONE MILLION DOLLARS OR SEVENTY SIX CENTS A SHARE COMPARED WITH THREE HUNDRED SEVENTEEN POINT THREE MILLION DOLLARS OR SEVENTY FOUR CENTS A SHARE A YEAR EARLIER REVENUE WAS THREE POINT THREE ONE BILLION DOLLARS UP ABOUT ONE PERCENT FROM THREE POINT TWO SEVEN BILLION DOLLARS A YEAR EARLIER FOR THE YEAR BELL ATLANTIC REPORTED EARNINGS OF ONE POINT FOUR BILLION DOLLARS OR THREE DOLLARS AND TWENTY TWO CENTS A SHARE COMPARED WITH ONE POINT THREE FOUR BILLION DOLLARS OR THREE DOLLARS AND THIRTEEN CENTS A SHARE FOR NINETEEN NINETY TWO THE NINETEEN NINETY THREE EARNINGS REFLECT SEVERAL ONE TIME CHARGES INCLUDING A NONCASH CHARGE OF EIGHTY FIVE MILLION DOLLARS OR NINETEEN CENTS A SHARE FOR POST EMPLOYMENT BENEFITS CRYSTAL BRANDS INCORPORATED A SPORTSWEAR COMPANY THAT HAS SEVERAL WELL KNOWN BRANDS SAID IT FILED FOR CHAPTER ELEVEN BANKRUPTCY LAW PROTECTION THE SOUTHPORT CONNECTICUT APPAREL AND COSTUME JEWELRY MAKER SAID IN A STATEMENT FRIDAY THAT IT SOUGHT COURT PROTECTION QUOTE TO RESTRUCTURE ITS INDEBTEDNESS AND REORGANIZE ITS CAPITAL STRUCTURE QUOTE IT ALSO SAID IT AGREED TO CONSIDER THE SALE OF ITS COSTUME JEWELRY OPERATIONS ONE OF THE NATION'S DOMINANT CRYSTAL BRANDS PRODUCES SPORTSWEAR UNDER THE GANT SALTY DOG AND IZOD BRAND NAMES AND JEWELRY UNDER THE MONET TRIFARI AND MARVELLA NAMES TO RAISE CASH IT HAS ALREADY SOLD ITS EVAN PICONE AND LACOSTE ALLIGATOR S. A. TRADEMARKS THE BANKRUPTCY LAW FILING CAME AS NO SURPRISE TO ANALYSTS YOU HAVE A COMPANY WITH ALL OF THESE WONDERFUL LABELS THAT WAS BADLY MISMANAGED FOR A NUMBER OF YEARS SAID LAURENCE LEEDS JUNIOR AN ANALYST WITH BUCKINGHAM RESEARCH INCORPORATED NEW YORK NEW MANAGEMENT INHERITED ENORMOUS DEBTS AND THE DEBT PAYMENTS WERE SO LARGE THAT CONDUCTING A VIABLE BUSINESS WAS ALL BUT IMPOSSIBLE IN A PREPARED STATEMENT THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER CHARLES CAMPBELL CHARACTERIZED THE FILING AS THE FINAL STEP TOWARDS BEGINNING THE PROCESS OF RETURNING THE COMPANY TO A STATE OF HEALTH COMPANY EXECUTIVES COULDN'T BE REACHED FOR FURTHER COMMENT OVER THE WEEKEND THE COMPANY RESTRUCTURED FOUR HUNDRED NINETEEN MILLION DOLLARS IN DEBT ABOUT A YEAR AGO AN ARRANGEMENT THAT WAS INTENDED TO REMAIN IN EFFECT THROUGH NINETEEN NINETY FIVE IN JULY IT BROUGHT IN MR. CAMPBELL WHO HELPED BRING MUNSINGWEAR INCORPORATED OUT OF BANKRUPTCY LAW PROCEEDINGS AS CHAIRMAN AND CHIEF EXECUTIVE NOW IT'S ANYONE'S GUESS WHAT HAPPENS SAID MR. LEEDS THE TRADEMARKS ARE STILL VERY VIABLE BUT IF THEY SELL OFF THE COSTUME JEWELRY BUSINESS IT WOULD BE A VERY SMALL COMPANY QUOTE THE COMPANY ALSO ANNOUNCED THAT IT HAD RECEIVED A COMMITMENT FROM CITICORP FOR A SEVENTY FIVE MILLION DOLLAR DEBTOR IN POSSESSION CREDIT FACILITY SUBJECT TO BANKRUPTCY COURT APPROVAL WHICH WOULD PROVIDE THE COMPANY WITH WORKING CAPITAL WITH OUR DIP FINANCING IN PLACE SAID MR. CAMPBELL I FORESEE NO INTERRUPTION OF PRODUCT FLOW AND THE DELIVERY TO OUR CUSTOMERS OF THE QUALITY MERCHANDISE THEY HAVE COME TO EXPECT OF CRYSTAL BRANDS GENERAL JOHN T. CHAIN JUNIOR FIFTY NINE YEARS OLD WAS ELECTED A DIRECTOR OF THIS TOBACCO AND FOOD CONCERN INCREASING THE BOARD TO SIXTEEN MEMBERS GENERAL CHAIN AN EXECUTIVE VICE PRESIDENT OF BURLINGTON NORTHERN RAILROAD IS A FORMER COMMANDER IN CHIEF OF THE STRATEGIC AIR COMMAND TIMOTHY J. COPE FORTY TWO YEAR OLD VICE PRESIDENT FINANCE WAS NAMED CHIEF FINANCIAL OFFICER OF THIS DEVELOPER AND MANAGER OF CASINO GAMING FACILITIES SUCCEEDING JAMES L. WHITE WHO QUIT IN NOVEMBER AMERICAN TELECASTING INCORPORATED COLORADO SPRINGS COLORADO SAID ITS SERIES A CONVERTIBLE PREFERRED STOCK WAS CONVERTED INTO COMMON STOCK A WEEK AGO ABOUT TWO MILLION SHARES WERE CONVERTED ON A ONE FOR ONE BASIS THE OPERATOR OF WIRELESS CABLE T. V. SYSTEMS SAID CAN STOCK MARKET INVESTORS LEARN TO LOVE A LIBERAL DEMOCRAT AS PRESIDENT CLINTON BEGINS HIS SECOND YEAR IN OFFICE THE DOW JONES INDUSTRIAL AVERAGE CONTINUES TO HIT ONE RECORD AFTER ANOTHER INDEED THE INDEX CLOSED ABOVE THE THREE THOUSAND NINE HUNDRED LEVEL FRIDAY FOR THE FIRST TIME EVER AND THAT STRONG PERFORMANCE COMES ON THE HEELS OF NINETEEN POINT FIVE PERCENT GAIN DURING MR. CLINTON'S FIRST YEAR IN THE WHITE HOUSE AT THE SAME TIME THE BOND MARKET UNDERWENT A PHENOMENAL RALLY LAST YEAR PROVIDING A SOLID FOUNDATION FOR THE STOCK MARKET'S GAINS SOME ANALYSTS FIGURE THE VIGOROUS YOUNG PRESIDENT DESERVES KUDOS FROM INVESTORS QUOTE YOU CAN'T HELP BUT GIVE CLINTON SOME OF THE CREDIT FOR THE FINANCIAL MARKETS' PERFORMANCE QUOTE SAYS ANDREW G. SCHWARTZ POLITICAL ANALYST AT COUNTY NATWEST SLASH WASHINGTON ANALYSIS IN WASHINGTON HE WAS IN LARGE PART RESPONSIBLE FOR THE MOOD OF THE MARKETS BUT OTHERS ARGUE THAT IT ISN'T THAT SIMPLE WHILE MR. CLINTON'S POLICIES HAVE BEEN MORE BENEVOLENT THAN AT FIRST EXPECTED THESE CRITICS SAY THE RESULTS TO DATE ARE DUE MORE TO LUCKY TIMING THAN TO ANY CLINTON ADMINISTRATION INITIATIVES CLEARLY CLINTON WAS POSITIONED VERY WELL WITH THE ECONOMY IMPROVING AT THE END OF PRESIDENT BUSH'S TERM SAYS RYAN KRUEGER POLITICAL ANALYST AT NOMURA RESEARCH INSTITUTE AND SO FAR HE HASN'T DONE ANYTHING TO HARM THE ECONOMY TO HIS FANS MR. CLINTON HAS DONE A MASTERFUL JOB OF WINNING THE HEARTS AND WALLETS OF WALL STREET THEY CREDIT HIM WITH LAYING THE FOUNDATION IN HIS FIRST YEAR FOR A CONTINUED IMPROVEMENT IN THE ECONOMY AND A FURTHER RISE IN STOCK PRICES JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL AND COMPANY ARGUES THAT MR. CLINTON HAS MATURED AS PRESIDENT RECOGNIZING THE NEED TO COMPROMISE ON HIS MAJOR POLICY INITIATIVES EVEN MR. CLINTON'S MUCH MALIGNED TAX INCREASES WILL HAVE ONLY A LIMITED IMPACT ON THE OVERALL ECONOMY BECAUSE THEY TARGET HIGHER INCOME INDIVIDUALS MR. BATTIPAGLIA CONTENDS AND HE ADDS THE BUDGET ENACTED LAST YEAR WILL LIKELY SHOW BETTER THAN EXPECTED RESULTS IN DEFICIT REDUCTION A LOT OF POSITIVE THINGS WILL SHOW UP AS A RESULT OF HIS FIRST YEAR MR. BATTIPAGLIA SAYS THE U. S. ECONOMY WILL CONTINUE TO EXPAND AT AN ABOVE AVERAGE RATE COMPARED WITH THE LAST FEW YEARS AND THE U. S. EXPORT POSITION WILL IMPROVE MR. BATTIPAGLIA SAYS HE WOULDN'T BE SURPRISED TO SEE A TEN PERCENT TO THIRTEEN PERCENT GAIN IN STOCK PRICES THIS YEAR AIDED BY STABLE INTEREST RATES INDIVIDUAL INVESTORS ARE LIKELY TO CONTINUE POURING MONEY INTO THE MARKET HE SAYS ADDING THAT THESE INVESTORS' HOLDINGS OF STOCKS ARE STILL FAR BELOW RECORD LEVELS RELATIVE TO THEIR TOTAL ASSETS THOMAS D. GALLAGHER POLITICAL ANALYST AT SHEARSON LEHMAN IN WASHINGTON IS LESS ENTHUSIASTIC HE GIVES PRESIDENT CLINTON CREDIT FOR HELPING SPARK THE BOND MARKET RALLY BY FOCUSING ON DEFICIT REDUCTION BUT HE IS QUICK TO POINT OUT THAT THE LOW INFLATION ENVIRONMENT THAT GREETED THE CLINTON ADMINISTRATION AND THAT HAS CONTINUED THROUGH ITS FIRST YEAR ALSO PLAYED A KEY ROLE QUOTE CREDIBLE DEFICIT REDUCTION ALONG WITH DISINFLATION FUELED THE BOND MARKET RALLY QUOTE MR. GALLAGHER SAYS HE IS RELUCTANT TO ASCRIBE THE STOCK MARKET'S OVERALL STRENGTH TO CLINTON POLICIES AND HE BLAMES THE PRESIDENT FOR SOME OF THE MARKET'S MORE NOTABLE DISASTERS LAST YEAR ASK ANYONE WHO HELD TOBACCO OR DRUG STOCKS AND THEY'LL TELL YOU THERE WAS A BIG IMPACT THERE MR. GALLAGHER SAYS SOME ANALYSTS BELIEVE THE INTENSE FOCUS ON THE ADMINISTRATION'S POLICIES WILL RELAX SOME THIS YEAR PROVIDING A FAVORABLE ENVIRONMENT FOR THE OVERALL MARKET AND FOR SOME OF THE BELEAGUERED STOCK SECTORS FOR INSTANCE HEALTH CARE THE BUDGET AND THE NORTH AMERICAN FREE TRADE AGREEMENT ALL CAME UNDER INTENSE SCRUTINY LAST YEAR WE PAID A LOT OF ATTENTION TO ALL THOSE THINGS THEY WERE THE BIG QUESTION MARKS OF NINETEEN NINETY THREE SAYS MR. SCHWARTZ OF COUNTY NATWEST SLASH WASHINGTON ANALYSIS A LOT OF THOSE ARE NOW LOCKED INTO PLACE EVEN THOUGH THE HEALTH CARE PLAN IS YET TO BE WORKED OUT STOCKS IN THE HEALTH CARE AND DRUG GROUPS ARE LIKELY TO REBOUND AFTER LAST YEAR'S BATTERING SAYS GRUNTAL'S MR. BATTIPAGLIA THOSE STOCKS WILL BE HELPED BY MR. CLINTON'S APPARENT WILLINGNESS TO COMPROMISE ON HEALTH CARE AND BY THE PERCEPTION THAT THE WORST NEWS IS ALREADY OUT ABOUT THE REFORM PLAN THE DRUGS MAY SWING BACK INTO VOGUE AS PEOPLE REALIZE THE HEALTH CARE PLAN IS NOT AS BAD AS THEY THOUGHT MR. BATTIPAGLIA SAYS OTHER STOCK GROUPS THAT MAY COME INTO THE SPOTLIGHT THIS YEAR BECAUSE OF CLINTON POLICIES ARE TELECOMMUNICATIONS AND THE ENVIRONMENT BUT THE IMPLICATIONS FOR THESE INDUSTRIES ARE FAR FROM CLEAR YET MR. BATTIPAGLIA EXPECTS TO SEE A FLURRY OF MERGER AND TAKEOVER ACTIVITY IN THE TELECOMMUNICATIONS ARENA AS THE WHITE HOUSE WORKS TO DEREGULATE THE INDUSTRY THE MOVES WILL BE NECESSARY AS CABLE TELEPHONE BROADCAST AND SATELLITE COMPANIES ARE ALLOWED TO ENTER EACH OTHER'S BUSINESSES ON BALANCE THE TREND HAS POSITIVE IMPLICATIONS MR. BATTIPAGLIA SAYS THE ADMINISTRATION'S EFFORT TO IMPROVE THE ENVIRONMENT MAY PROVE TROUBLESOME FOR SOME NATURAL RESOURCES COMPANIES MR. BATTIPAGLIA ARGUES THAT ENVIRONMENTAL REGULATION IS PUSHING MORE AND MORE BUSINESS OVERSEAS QUOTE WE'RE MOVING TOWARD A CLEAN CONTINENT WHICH MEANS WE'RE PUSHING OUT OF THE COUNTRY ANYTHING DIRTY QUOTE HE SAYS THE NATURAL RESOURCE INDUSTRY IS SUFFERING BECAUSE OF THIS TREND IF PREDICTING THE STOCK MARKET'S DIRECTION DURING MR. CLINTON'S SECOND YEAR SEEMS DICEY THEN PERHAPS HISTORICAL PATTERNS WILL OFFER SOME INSIGHT LEHMAN BROTHERS' MR. GALLAGHER STUDIED THE STOCK MARKET'S PERFORMANCE IN THE SECOND YEAR OF PRESIDENTIAL TERMS GOING BACK AS FAR AS THE TRUMAN ADMINISTRATION HIS FINDINGS DON'T BODE WELL FOR NINETEEN NINETY FOUR THERE IS A HISTORICAL PATTERN THAT SAYS THE SECOND YEAR IS OFTEN WEAK ESPECIALLY FOR DEMOCRATS MR. GALLAGHER SAYS THE DOW JONES INDUSTRIAL AVERAGE SURGED TO ANOTHER RECORD PUSHING ABOVE THE THREE THOUSAND NINE HUNDRED LEVEL THE DOW INDUSTRIALS ROSE TWENTY TWO POINT FIVE TWO POINTS TO THREE THOUSAND NINE HUNDRED FOURTEEN POINT FOUR EIGHT ITS NINTH RECORD THIS YEAR STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX SLIPPED ZERO POINT TWO SIX TO FOUR HUNDRED SEVENTY FOUR POINT SEVEN TWO AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED ZERO POINT ONE ONE TO TWO HUNDRED SIXTY THREE POINT ONE TWO THE NASDAQ COMPOSITE INDEX CLIMBED ONE POINT TWO FIVE TO A RECORD SEVEN HUNDRED NINETY FOUR POINT TWO EIGHT THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL ZERO POINT ZERO SEVEN TO FOUR HUNDRED EIGHTY FOUR POINT SEVEN FOUR VOLUME ON THE BIG BOARD SURGED TO THREE HUNDRED FORTY THREE POINT SIX MILLION SHARES FROM THREE HUNDRED TEN POINT FOUR MILLION THURSDAY DESPITE THE DOW'S CLIMB DECLINING ISSUES OUTNUMBERED ADVANCERS ONE THOUSAND EIGHTY SIX TO NINE HUNDRED EIGHTY FOR THE WEEK THE DOW INDUSTRIALS GAINED FORTY SEVEN POINTS OR ONE POINT TWO PERCENT S. AND P. FIVE HUNDRED LOST ZERO POINT ONE NINE POINT AND THE BIG BOARD COMPOSITE ROSE ZERO POINT TWO TWO POINT WORLD WIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED ZERO POINT ONE EIGHT TO ONE HUNDRED FOURTEEN POINT FIVE SIX STOCK PRICES SHOT HIGHER LATE IN THE DAY BECAUSE OF TRADERS MAKING ADJUSTMENTS RELATED TO THE EXPIRATION OF MONTHLY OPTIONS CONTRACTS TECHNOLOGY ISSUES WERE MIXED APPLE COMPUTER JUMPED THREE AND ONE HALF TO THIRTY THREE AND THREE EIGHTHS S. G. WARBURG MERRILL LYNCH SMITH BARNEY SHEARSON AND COWEN UPGRADED THEIR INVESTMENT RATINGS ON APPLE ON THURSDAY THE COMPANY REPORTED FIRST QUARTER EARNINGS OF THIRTY FOUR CENTS A SHARE JUST ABOVE ANALYSTS' FORECASTS OF THIRTY THREE CENTS A SHARE INTEL ROSE ONE AND THREE EIGHTHS TO SIXTY FIVE AND ONE EIGHTH MICROSOFT WAS UNCHANGED AT EIGHTY SIX AND ONE QUARTER NOVELL ALSO WAS UNCHANGED AT TWENTY TWO AND SEVEN EIGHTHS SUN MICROSYSTEMS LOST ONE AND FIVE EIGHTHS TO TWENTY SIX COMPUTER ASSOCIATES INTERNATIONAL LOST THREE TO THIRTY EIGHT BANDAG A MAKER OF MATERIALS THAT RETREAD TRUCK AND BUS TIRES LOST THREE TO FIFTY NINE AND THREE QUARTERS THE COMPANY REPORTED FOURTH QUARTER EARNINGS OF EIGHTY FOUR CENTS A SHARE BELOW ANALYSTS' ESTIMATE OF EIGHTY SEVEN CENTS SILICON GRAPHICS CLIMBED ONE AND THREE QUARTERS TO TWENTY FOUR AND SEVEN EIGHTHS ON THURSDAY THE COMPANY REPORTED SECOND QUARTER EARNINGS OF TWENTY FOUR CENTS A SHARE ABOVE ANALYSTS' ESTIMATES OF TWENTY CENTS KRISTIN W. DAVIS FORTY NINE YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT AT THE NATIONAL WESTMINSTER BANCORP UNIT OF THIS BANK HOLDING COMPANY IN THIS NEWLY CREATED POSITION MS. DAVIS PREVIOUSLY RISK MANAGER AT CARTERET SAVINGS BANK IN PARSIPPANY N. J. WILL BE RESPONSIBLE FOR THE COMPANY'S RISK MANAGEMENT DIVISION CYRIX CORPORATION WON THE FIRST ROUND IN YET ANOTHER LEGAL BATTLE WITH RIVAL INTEL CORPORATION OVER ITS RIGHT TO SELL COMPUTER CHIPS THAT ARE CLONES OF INTEL'S A FEDERAL JUDGE IN SHERMAN TEXAS RULED ON ONE OF THREE ISSUES IN A COMPLEX SUIT FILED IN NINETEEN NINETY ONE BY CYRIX IN A DEBATE CONCERNING PATENTS HELD BY INTEL IN THE RULING THE JUDGE SAID THAT INTEL MAY NOT COLLECT ROYALTIES FROM CYRIX CUSTOMERS WHO BOUGHT CLONES OF INTEL'S THREE EIGHTY SIX AND FOUR EIGHT SIX CHIPS THAT WERE MANUFACTURED BY CYRIX'S PRIMARY SUBCONTRACTOR THAT SUBCONTRACTOR IS LICENSED BY INTEL AND THE JUDGE SAID RIGHTS UNDER THE LICENSE IN EFFECT PASS THROUGH BOTH TO CYRIX AND ITS CUSTOMERS THE MICROPROCESSORS ACT AS THE BRAINS OF MANY PERSONAL COMPUTERS AND INTEL SANTA CLARA CALIFORNIA DOMINATES THE P. C. CHIP BUSINESS ITS NINETEEN NINETY THREE SALES WERE EIGHT POINT EIGHT BILLION DOLLARS MORE THAN EIGHTY FIVE TIMES THOSE OF CYRIX INTEL INTENDS TO APPEAL THE RULING SAID THOMAS DUNLAP INTEL'S GENERAL COUNSEL QUOTE THIS IS A LEGAL LOSS BUT IT DOESN'T CHANGE ANYTHING FROM A BUSINESS STANDPOINT FOR INTEL IT'S PART OF AN ONGOING ATTEMPT TO GIVE A RETURN TO OUR SHAREHOLDERS WHEN THE GOVERNMENT GIVES US A PATENT RIGHT INTEL HAS USED THE LEGAL SYSTEM AGGRESSIVELY TO PROTECT SUCH RIGHTS MOST FREQUENTLY CLASHING WITH ADVANCED MICRO DEVICES INCORPORATED ANOTHER SILICON VALLEY CHIP MAKER A CYRIX NEWS RELEASE REFERRED TO INTEL'S SYSTEMATIC CAMPAIGN OF INTIMIDATION AND HARASSMENT OF CYRIX CUSTOMERS DEMANDING THEY EITHER USE INTEL MICROPROCESSORS OR PAY INTEL AN EXORBITANT ROYALTY JERRY ROGERS CYRIX PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID HIS CUSTOMERS RESENT INTEL'S MONOPOLISTIC BEHAVIOR TODAY THE JUDGE IS TO BEGIN CONSIDERING OTHER ASPECTS OF THE SUIT INCLUDING THE VALIDITY OF THE PATENT IN QUESTION AND WHETHER A ROYALTY SHOULD APPLY TO CHIPS MADE BY NONLICENSED CYRIX CONTRACTORS NEWS CORPORATION KELVIN MACKENZIE FORTY SEVEN YEARS OLD WAS NAMED MANAGING DIRECTOR OF THIS MEDIA CONCERN'S BRITISH SKY BROADCASTING SATELLITE UNIT MR. MACKENZIE FORMERLY EDITOR OF THE SUN NEWSPAPER IN LONDON WILL BE SUCCEEDED BY STUART HIGGINS THIRTY SEVEN FORMERLY DEPUTY EDITOR OF THE SUN THE BANGKOK PROPERTY MARKET APPEARS TO BE ON THE MEND CONFOUNDING LAST YEAR'S GLOOMY PREDICTIONS AFTER A STEEP FALL IN NINETEEN NINETY TWO AND EARLY NINETEEN NINETY THREE OFFICE RENTS STABILIZED IN THE FOURTH QUARTER AS COMPANIES MOVED TO ROOMIER QUARTERS AND CONSTRUCTION SLOWED THE HOUSING MARKET ALSO LOOKS HEALTHIER SALES OF RESIDENTIAL PROPERTY PARTICULARLY SMALL CENTRAL APARTMENTS JUMPED IN THE QUARTER JUST SIX MONTHS AGO THE BANGKOK REAL ESTATE MARKET APPEARED HEADED FOR A SUSTAINED SLUMP THE RAPID TURNAROUND IN SENTIMENT PARTLY REFLECTS THE STOCK MARKET'S SURGE LATE LAST YEAR SOARING STOCKS BOLSTERED CONFIDENCE AND GAVE INVESTORS WINDFALLS TO INVEST IN REAL ESTATE LOWER INTEREST RATES AND RISING DEMAND FOR CITYCENTER APARTMENTS AND OFFICES FROM PEOPLE FRUSTRATED BY CHRONIC TRAFFIC JAMS ALSO BOLSTERED THE MARKET QUOTE THE PROPERTY MARKET MOVES INTO THE NEW YEAR IN REASONABLY HEALTHY SHAPE QUOTE SAYS MICHAEL POOLE GENERAL MANAGER OF CHESTERTON THAI PROPERTY CONSULTANTS LIMITED A BRITISH REAL ESTATE SALES AND MANAGEMENT CONCERN HE THINKS RENTS IN PRIME BUILDINGS WILL BE STEADY TO SLIGHTLY HIGHER THIS YEAR ADISORN THANANANNARAPOOL EXECUTIVE VICE PRESIDENT OF LAND AND HOUSES P. C. L. A PROPERTY DEVELOPMENT CONCERN SAYS SALES OF RESIDENTIAL PROPERTY WERE STRONGER THAN WE EXPECTED IN THE LAST QUARTER AND STRONGER DEMAND ABSORBED SOME OF THE OVERSUPPLY IN THE MARKET BUT NOT EVERY SECTOR IMPROVED A GLUT OF LUXURY HOTEL SPACE PERSISTS AND WORSENING TRAFFIC JAMS HURT DEMAND FOR SOME OUT OF THE WAY LOCATIONS MOREOVER ANALYSTS WARN THAT DEVELOPERS SHOULDN'T COUNT ON PRICES RISING MUCH IN THE NEAR FUTURE BECAUSE NEW OFFICE AND RESIDENTIAL PROPERTY CONTINUES TO ENTER THE MARKET A YEAR AGO THE OFFICE OCCUPANCY RATE IN BANGKOK WAS ABOUT EIGHTY NINE PERCENT BUT WITH A SPATE OF NEW BUILDINGS NEARING COMPLETION PROPERTY VALUERS AT AMERICAN APPRAISAL THAILAND LIMITED PREDICTED LAST YEAR THAT OCCUPANCY WOULD PLUNGE TO FIFTY EIGHT PERCENT BY THE END OF NINETEEN NINETY THREE SOME ECONOMISTS WARNED THAT THE MARKET WOULD COLLAPSE AS IT DID IN THE MID NINETEEN EIGHTIES BUT THE WARNINGS PROMPTED DEVELOPERS TO DELAY SOME PROJECTS AND SCRAP OTHERS NOW AMERICAN APPRAISAL SAYS OCCUPANCY IS ABOUT EIGHTY EIGHT PERCENT OR THIRTY PERCENTAGE POINTS HIGHER THAN IT EXPECTED A YEAR AGO EVEN SO THE FIRM FORECASTS OCCUPANCY WILL FALL TO SIXTY FIVE PERCENT BY YEAR END SOME OTHER ANALYSTS THINK THAT FORECAST IS FAR TOO LOW NIGEL CORNICK MANAGING DIRECTOR OF COLLIERS JARDINE THAILAND LIMITED SAYS OCCUPANCY IS LIKELY TO BOTTOM OUT AT AROUND EIGHTY THREE PERCENT IN MID NINETEEN NINETY FOUR RODOLFO L. VERGARA MANAGING DIRECTOR OF AMERICAN APPRAISAL THAILAND ACKNOWLEDGES HE MIGHT HAVE TO REVISE HIS NUMBERS IF DEMAND CONTINUES TO GROW THINGS ARE DEFINITELY LOOKING BETTER THAN THEY DID A YEAR AGO HE SAYS ONE REASON IS THAT MANY COMPANIES ARE DITCHING CRAMPED OFFICES FOR SPACIOUS NEW ONES LOWER PRICES HAVE ENTICED RENTERS AS WELL EVEN WITH THE SLOWDOWN IN CONSTRUCTION DEVELOPERS COULDN'T SUSTAIN THE NINETEEN NINETY TWO RENTS OF AS MUCH AS TWENTY FOUR DOLLARS A SQUARE METER FOR PRIME LOCATIONS NOW MOST BUILDINGS IN THE CENTRAL BUSINESS DISTRICT ARE RENTING SPACE AT ABOUT EIGHTEEN DOLLARS A SQUARE METER HIGH ENOUGH FOR MOST OF THEM TO BREAK EVEN BUT SUCH PRICES ARE WISHFUL THINKING IN OTHER AREAS SUCH AS ASOKE AVENUE WHICH SPORTS EIGHT NEW OFFICE TOWERS THE AVENUE JUST TWO KILOMETERS FROM SOME OF BANGKOK'S MOST EXPENSIVE REAL ESTATE IS SO CLOGGED BY TRAFFIC THAT IT MAY BE IMPOSSIBLE TO FIND TENANTS FOR ALL THE NEW SPACE LANDLORDS IN SOME OF THE BEST NEW BUILDINGS ON ASOKE AVENUE ARE ASKING FOURTEEN DOLLARS A SQUARE METER BUT THEY ARE GIVING DISCOUNTS AND THROWING IN THREE MONTHS OF FREE RENT ON TWO YEAR LEASES RENTS ARE LEVELING OFF BUT MORE THAN EVER BEFORE LOCATION IS THE MOST IMPORTANT THING MR. VERGARA SAYS IN MANY CASES THE DECLINES IN RENT HAVE BROUGHT PRICES BACK TO MORE REASONABLE LEVELS AFTER A PERIOD IN NINETEEN NINETY ONE AND NINETEEN NINETY TWO WHEN HIGH OCCUPANCY RATES PUSHED PRICES THROUGH THE ROOF IN EARLY NINETEEN NINETY TWO SOME OF BANGKOK'S SHODDIER BUILDINGS COMMANDED RENTS OF TWENTY SIX DOLLARS A SQUARE METER IN NINETEEN EIGHTY EIGHT WHEN MANY OF TODAY'S NEW BUILDINGS FIRST WERE PLANNED RENTS AVERAGED ONLY ABOUT FOUR DOLLARS A SQUARE METER IN RESIDENTIAL PROPERTY SALES IN BANGKOK IN THE SECOND HALF OF NINETEEN NINETY THREE WERE THIRTY PERCENT ABOVE THE PREVIOUS SIX MONTHS AND THE YEAR EARLIER PERIOD ACCORDING TO SOMCHAI PHAKAPHAVIVAT ADVISER TO THE HOUSE OF REPRESENTATIVES ECONOMIC AFFAIRS COMMITTEE HE SAYS MOST OF THE INCREASE CAME IN THE FOURTH QUARTER AS A FIFTY PERCENT RISE IN THE STOCK MARKET FUELED OPTIMISM DONALD C. MACMARTIN RESIGNED AS PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR QUOTE TO PURSUE OTHER CAREER INTERESTS QUOTE THE COMPANY SAID THE MAKER OF HOCKEY EQUIPMENT SAID ITS EXECUTIVE COMMITTEE AND GERALD WASSERMAN VICE CHAIRMAN WILL ASSUME MR. MACMARTIN'S DAILY RESPONSIBILITIES UNTIL A REPLACEMENT IS NAMED COMPAQ COMPUTER CORPORATION SAID IT PLANS TO EXPAND ITS MANUFACTURING OPERATION IN SCOTLAND TO HELP MEET INCREASING DEMAND FOR THE PERSONAL COMPUTER MAKER'S PRODUCTS IN EUROPE THE TEN POINT FIVE MILLION DOLLAR EXPANSION IS SCHEDULED TO BE COMPLETED IN THE THIRD QUARTER AND WILL INCLUDE THE OPENING OF TWO MANUFACTURING LINES FOR PRINTED CIRCUIT BOARDS CLARK H. MOCK WAS NAMED A DIRECTOR OF THIS BANK SUCCEEDING HERBERT C. PICARD WHO RETIRED MR. MOCK RECENTLY RETIRED AS EXECUTIVE VICE PRESIDENT AND CHIEF CREDIT OFFICER AT SEATTLEFIRST NATIONAL BANK A UNIT OF BANKAMERICA CORPORATION MR. PICARD A FOUNDER OF INTERWEST IS FORMER OWNER AND OPERATOR OF PRAIRIE CENTER A MERCHANDISE AND LUMBER RETAILING CONCERN JACK NELSON WAS NAMED A DIRECTOR OF THIS MAKER OF SEMICONDUCTOR BASED LASER PRODUCTS FILLING A VACANCY ON THE BOARD WHICH HAS FIVE MEMBERS MR. NELSON FORTY ONE YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ADVANCED NMR SYSTEMS AND CHAIRMAN AND TREASURER OF ADVANCED MAMMOGRAPHY SYSTEMS HYUNDAI MOTOR AMERICA THE U. S. SALES ARM OF SOUTH KOREA'S HYUNDAI MOTOR COMPANY SAID ITS NINETEEN NINETY FIVE SONATA MIDSIZE SEDAN IS PRICED AT THIRTEEN THOUSAND TWO HUNDRED NINETY NINE DOLLARS IT WILL GO ON SALE NEXT MONTH CONTINENTAL AIRLINES SAID IT PLANS TO CUT FLIGHTS AT ITS DENVER HUB BY TWENTY THREE PERCENT ANOTHER STEP IN WHAT APPEARS TO BE A COMPANY WIDE ROUTE RESTRUCTURING THE CARRIER BASED IN HOUSTON SAID IT WOULD REDUCE DAILY JET DEPARTURES FROM ITS THIRD LARGEST HUB TO ONE HUNDRED SEVEN FROM ONE HUNDRED THIRTY NINE EFFECTIVE MARCH NINTH AT THE SAME TIME IT WILL CUT SERVICE FROM DENVER TO SIX CITIES AND ELIMINATE THREE HUNDRED POSITIONS AS CONTINENTAL REDUCES ITS DENVER FLIGHTS IT WILL BOOST SERVICE TO OTHER PARTS OF ITS SYSTEM PARTICULARLY THE NEW CALITE SERVICE THAT OPERATES SHORT HAUL LOW FARE FLIGHTS PRIMARILY IN THE SOUTHEAST WHILE THE COMPANY WON'T PROVIDE DETAILS PEOPLE FAMILIAR WITH ITS PLANS SAY CONTINENTAL WILL MORE THAN DOUBLE ITS CALITE OPERATION IN MARCH ALSO ACCORDING TO PUBLISHED REPORTS IT WILL BOOST ITS DEPARTURES FROM ITS CLEVELAND HUB BY FORTY THREE PERCENT A COMPANY SPOKESMAN WOULDN'T COMMENT ALL THIS IS PART OF A MOVE BY CONTINENTAL TO REMAKE ITSELF FROM THE DEBT LADEN UNPROFITABLE GIANT THAT LANDED IN BANKRUPTCY COURT IN NINETEEN NINETY TO A NIMBLER AIRLINE WITH FLIGHTS THAT DON'T COMPETE HEAD ON WITH ITS BIG RIVALS SINCE EMERGING FROM CHAPTER ELEVEN PROTECTION LAST APRIL CONTINENTAL HAS SCRAPPED ITS FLIGHTS TO AUSTRALIA AND NEW ZEALAND AND REDEPLOYED THOSE PLANES ON TRANS CONTINENTAL FLIGHTS LAST FALL IT INAUGURATED CALITE THE FIRST LARGE AIRLINE TO ATTEMPT A SHORT HAUL ALTERNATIVE PREVIOUSLY IT WAS THE FIRST U. S. AIRLINE TO ELIMINATE FIRST CLASS ON INTERNATIONAL ROUTES AND CONCENTRATE ON SELLING ONLY BUSINESS CLASS SEATS THE DENVER ACTIONS ARE YET ANOTHER STEP IN THIS MOVE TO LEANER OPERATIONS DENVER IS UNPROFITABLE FOR CONTINENTAL BECAUSE IT'S THE ONLY HUB WHERE THE AIRLINE COMPETES HEAD ON WITH ANOTHER CARRIER U. A. L. CORPORATION'S UNITED AIRLINES IN ADDITION CONTINENTAL'S COSTS ARE LIKELY TO INCREASE IN DENVER AFTER THAT CITY'S STAPLETON AIRPORT CLOSES THIS YEAR AND FLIGHT OPERATIONS MOVE TO THE NEW DENVER INTERNATIONAL AIRPORT WHICH HAS MUCH HIGHER LANDING COSTS WHILE CONTINENTAL'S ROUTE RESTRUCTURING COINCIDES WITH THE PROJECTED MOVE TO THE NEW DENVER AIRPORT CONTINENTAL SAID THE HIGHER OPERATING COSTS THERE AREN'T THE PRIMARY REASON IT IS CUTTING FLIGHTS THE COMPANY SAID IT WILL CONTINUE TO REEXAMINE ITS DENVER OPERATIONS QUOTE TO DETERMINE ITS PROPER SCOPE QUOTE CONTINENTAL WILL SUSPEND SERVICE FROM DENVER TO BOZEMAN MONTANA MISSOULA MONTANA ONTARIO CALIFORNIA SAN ANTONIO TEXAS TUCSON ARIZONA AND TULSA OKLAHOMA CANADA'S RAILROADS LONG A UNIFYING SYMBOL FOR THE FAR FLUNG NATION ARE ABOUT TO BECOME A SYMBOL OF A NEW TREND DOWNSIZING CANADIAN PACIFIC LIMITED AND GOVERNMENT OWNED CANADIAN NATIONAL RAILWAYS ARE EXPECTED TO FORGE IN COMING WEEKS A TENTATIVE PROPOSAL TO MERGE RAIL OPERATIONS ACROSS EASTERN AND CENTRAL CANADA AND POSSIBLY IN THE U. S. THE TWO MAJOR CANADIAN FREIGHT RAILROADS HAVE SUFFERED HEAVY LOSSES ON THEIR EASTERN OPERATIONS IN RECENT YEARS BOTH SAY THEY MUST SHED THOUSANDS OF MILES OF UNDERUSED TRACKS TO REMAIN VIABLE AFTER A YEAR OF TALKS BETWEEN THE COMPANIES THEIR CHIEF EXECUTIVES ARE SIGNALING THAT THEY'D LIKE TO SET UP A JOINTLY HELD COMPANY EAST OF WINNIPEG MANITOBA SUCH A PROPOSAL REQUIRES GOVERNMENT APPROVAL CRITICS WILL CHARGE THE RAILROADS WITH TRYING TO ESTABLISH A MONOPOLY WHATEVER THE OUTCOME THE INDUSTRY HAS REACHED A TURNING POINT IN ITS HISTORY ONE INTERLACED WITH THE NATION'S OWN THE CANADIAN PACIFIC RAILWAY WAS ETCHED ACROSS THE WESTERN PRAIRIES AND THE ROCKY MOUNTAINS IN THE LATE NINETEENTH CENTURY TO TIE BRITISH COLUMBIA TO THE REST OF THE COUNTRY CANADIAN NATIONAL WAS FORMED AFTER WORLD WAR ONE TO TAKE OVER SEVERAL BANKRUPT RAILROADS THE RESULT OF YEARS OF SPECULATIVE RAILWAY BUILDING AS IN THE U. S. THE RAILROADS EVENTUALLY RAN INTO STIFF COMPETITION FROM TRUCKERS PARTICULARLY FOR SHIPMENTS OF MANUFACTURED GOODS BUT WHILE U. S. RAILROADS CAPITALIZED ON TRANSPORTATION DEREGULATION IN NINETEEN EIGHTY TO DRAMATICALLY IMPROVE OPERATING PERFORMANCE IN THE PAST FEW YEARS CANADA'S RAILROADS FAILED TO KEEP PACE A NINETEEN EIGHTY SEVEN CHANGE IN CANADIAN REGULATIONS STRENGTHENED SHIPPERS' ABILITY TO BARGAIN OVER RATES PRESSURING RAILWAYS' REVENUES AND THE ECONOMIC SLUMP OF THE EARLY NINETEEN NINETIES DEPRESSED BUSINESS DRIVING BOTH OF THE BIG FREIGHT CARRIERS INTO THE RED AND UNDERSCORING THE NEED TO DOWNSIZE CANADIAN NATIONAL FOR EXAMPLE CARRIES NINETY TWO PERCENT OF ITS TOTAL VOLUME OF TRAFFIC ON ONLY THIRTY NINE PERCENT OF ITS TRACK PAUL TELLIER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAYS THE RAILWAY WANTS TO SHED ABOUT TWENTY PERCENT OF ITS EASTERN AND CENTRAL NETWORK BY NINETEEN NINETY FIVE AND SELL ANOTHER THIRD TO SHORT LINE OPERATORS A FORM OF LOW COST FEEDER RAILWAY THAT IS COMMON IN THE U. S. BUT JUST CATCHING ON IN CANADA CANADIAN PACIFIC'S RAIL ARM C. P. RAIL SYSTEM IN NINETEEN NINETY TWO RANKED THIRD AMONG NORTH AMERICAN RAILROADS IN MILES OF TRACK BUT SEVENTH IN REVENUE TON MILES A MEASURE OF FREIGHT HAULED CANADIAN REGULATIONS DESIGNED TO PRESERVE RAIL SERVICES HAVE MADE IT DIFFICULT TO SHED TRACKS ALTHOUGH THAT IS BEGINNING TO CHANGE C. P. RAIL LAST SUMMER SECURED GOVERNMENT CLEARANCE TO SELL OR ABANDON MOST OF ITS RAIL OPERATIONS FROM SHERBROOKE QUEBEC TO THE PORT CITY OF SAINT JOHN NEW BRUNSWICK THE COMPANY IS STILL AWAITING CLEARANCE FROM THE U. S. INTERSTATE COMMERCE COMMISSION TO SHED A PORTION OF THAT LINE ACROSS NORTHERN MAINE IN NOVEMBER CANADIAN AUTHORITIES APPROVED A REQUEST BY CANADIAN NATIONAL AND C. P. RAIL TO SHARE A THREE HUNDRED MILE LINE IN THE OTTAWA VALLEY BETWEEN QUEBEC AND ONTARIO WHERE THE CARRIERS HAD BEEN OPERATING PARALLEL TRACKS A FEW MILES APART MANY OBSERVERS EXPECTED THE OTTAWA VALLEY TRACK SHARING FORMULA TO SERVE AS A MODEL FOR BROADER COOPERATION THE RAILWAYS CURRENTLY OPERATE PARALLEL LINES ACROSS MUCH OF EASTERN AND CENTRAL CANADA HAULING GOODS RANGING FROM AUTO PARTS TO BEER TO PULP AND PAPER BUT THE COMPANIES' CHIEF EXECUTIVES ARE INDICATING THEY WANT TO GO FURTHER FORMING A NEW JOINTLY OWNED COMPANY THAT WOULD MELD MARKETING AND ADMINISTRATIVE FUNCTIONS AS WELL AS TRACKS AND RAIL YARDS THE IDEA PROMISES TO BE CONTENTIOUS WITH A SINGLE CARRIER THERE WILL BE QUOTE A PERCEPTION OF MUCH GREATER REDUCTION IN COMPETITION QUOTE THAN WITH SHARED INFRASTRUCTURE BUT COMPETING SERVICES SAYS JOHN HEADS DIRECTOR OF THE UNIVERSITY OF MANITOBA'S TRANSPORT INSTITUTE THE PROPOSAL MAY FOUNDER ON NEGOTIATIONS BETWEEN THE RAILWAYS THEMSELVES TERMS OF A MERGER INCLUDING CAPITAL OWNERSHIP AND MANAGEMENT STRUCTURES WON'T BE NEGOTIATED UNTIL THE GOVERNMENT GIVES A GO AHEAD TO THE CONCEPT AMONG MATTERS TO BE SETTLED IS HOW MUCH OF THE COMPANIES' U. S. LINES WOULD BE INCLUDED IN THE MERGER BOTH HAVE INVESTED HEAVILY TO IMPROVE ACCESS TO THE U. S. CANADIAN NATIONAL IS DIGGING A TWO HUNDRED MILLION CANADIAN DOLLAR ONE HUNDRED FIFTY THREE MILLION U. S. DOLLARS TUNNEL UNDER THE SAINT CLAIR RIVER BETWEEN SARNIA ONTARIO AND PORT HURON MICHIGAN TO SPEED CROSS BORDER SHIPMENTS MR. TELLIER SAYS THE TUNNEL COULD BE INCLUDED IN THE MERGER ALONG WITH CANADIAN NATIONAL'S GRAND TRUNK WESTERN LINES FROM PORT HURON TO CHICAGO AND CINCINNATI CANADIAN PACIFIC'S CHAIRMAN WILLIAM STINSON HAS INDICATED THAT C. P. RAIL'S DELAWARE AND HUDSON LINES MIGHT BE INCLUDED THE CANADIAN CONGLOMERATE BOUGHT THE D. AND H. IN NINETEEN NINETY ONE BRINGING IT OUT OF BANKRUPTCY PROCEEDINGS THE D. AND H. PROVIDES ACCESS TO EASTERN U. S. PORTS C. P. RAIL MEN TRADITIONALLY SCORNED CANADIAN NATIONAL BASED NEARBY IN MONTREAL AS A SLEEPY GOVERNMENT OUTPOST BUT MR. TELLIER A FORMER SENIOR CIVIL SERVANT BROUGHT A HARD CHARGING STYLE TO C. N. WHEN HE JOINED THE COMPANY IN NINETEEN NINETY TWO IN SHORT ORDER MR. TELLIER SWEPT A LAYER OF VICE PRESIDENTS FROM THE EXECUTIVE SUITE AND ANNOUNCED A CHARGE OF EIGHT HUNDRED EIGHTY SEVEN MILLION CANADIAN DOLLARS TO ELIMINATE ELEVEN THOUSAND JOBS OR THIRTY PERCENT OF THE WORK FORCE BY NINETEEN NINETY FIVE C. N. ALSO INITIATED REVENUE GENERATING MEASURES INCLUDING AN ARRANGEMENT WITH U. S. RAILWAY BURLINGTON NORTHERN INCORPORATED TO STREAMLINE SHIPMENTS FROM WESTERN CANADA TO CHICAGO AND AN ALLIANCE WITH J. B. HUNT TRANSPORT SERVICES INCORPORATED IN THE U. S. TO HAUL TRAILERS FOR THE TRUCKING COMPANY BY RAIL BETWEEN CHICAGO AND CENTRAL CANADA THERE ARE SIGNS THE RAILROADS ARE MAKING HEADWAY C. P. RAIL HAD OPERATING PROFIT OF ONE HUNDRED THREE POINT FIVE MILLION CANADIAN DOLLARS IN THE FIRST NINE MONTHS OF NINETEEN NINETY THREE COMPARED WITH A YEAR EARLIER LOSS OF ONE HUNDRED SEVENTY FOUR POINT NINE MILLION CANADIAN DOLLARS WHICH INCLUDED A TWO HUNDRED SEVENTY POINT TWO MILLION CANADIAN DOLLAR CHARGE TO CONVERT TO TWO PERSON TRAIN CREWS FROM THREE PERSON CREWS C. N. SAYS IT HOPES TO TURN A SMALL NET PROFIT THIS YEAR FOLLOWING A NINETEEN NINETY THREE LOSS ESTIMATED AT SEVENTY MILLION CANADIAN DOLLARS BUT BOTH COMPANIES SAY MUCH MORE PROGRESS IS NEEDED IF THEY ARE TO COMPETE WITH U. S. RAILROADS WHICH CAN DRAW TRAFFIC FROM CENTRAL CANADA TO U. S. PORTS AMONG OTHER MEASURES THEY ARE PRESSING THEIR UNIONS FOR GREATER LABOR FLEXIBILITY OPERATING EXPENSES CONSUME WELL OVER NINETY PERCENT OF REVENUE AT THE CANADIAN CARRIERS COMPARED WITH THE EIGHTY FIVE PERCENT OR LESS FOR MOST MAJOR U. S. RAILROADS WITH INTEREST PAYMENTS RUNNING TO TWO HUNDRED MILLION CANADIAN DOLLARS A YEAR AT CANADIAN NATIONAL ALONE THE TIGHT OPERATING MARGIN LEAVES LITTLE MONEY TO REINVEST IN INFRASTRUCTURE Q. V. C. NETWORK INCORPORATED IS UNDER INCREASED PRESSURE TO IMPROVE ITS BID FOR PARAMOUNT COMMUNICATIONS INCORPORATED FOLLOWING THE PARAMOUNT BOARD'S ENDORSEMENT OF THE LATEST NINE POINT EIGHT BILLION DOLLARS EIGHTY THREE DOLLAR A SHARE TAKEOVER BID BY VIACOM INCORPORATED THE PARAMOUNT DIRECTORS ENDORSED THE VIACOM BID BASED ON AN OPINION BY THEIR ADVISER LAZARD FRERES AND COMPANY THAT IT WAS QUOTE MARGINALLY SUPERIOR QUOTE EVEN THOUGH ITS MARKET VALUE CURRENTLY IS LOWER THAN THE Q. V. C. BID CURRENTLY VALUED AT ABOUT TEN POINT TWO BILLION DOLLARS OR EIGHTY FOUR DOLLARS AND SEVENTY TWO CENTS A SHARE LAZARD BASED ITS OPINION ON OTHER TESTS OF VALUE FOR THE CASH AND STOCK BIDS PLUS INFORMAL POLLS OF TRADERS AND INVESTORS MANY OF WHOM SAY THEY FAVOR THE VIACOM BID BECAUSE IT PROVIDES EXTRA COMPENSATION IF VIACOM CLASS B. SHARES AREN'T TRADING AT FORTY EIGHT DOLLARS A SHARE A YEAR FOLLOWING A VIACOM PARAMOUNT ACQUISITION THE BOARD TERMINATED A MERGER AGREEMENT THAT IT STRUCK JUST BEFORE CHRISTMAS WITH Q. V. C. AND SIGNED A NEW MERGER ACCORD WITH VIACOM THE ACCORDS ARE DESIGNED TO BE SEVERED AS SOON AS THE OTHER SIDE MAKES A HIGHER OFFER UNDER BIDDING RULES SET BY PARAMOUNT VIACOM FIRST AGREED TO ACQUIRE PARAMOUNT ON SEPTEMBER TWELFTH Q. V. C. IS EXPECTED TO RETURN WITH A REVISED BID SOMETIME THIS WEEK AND BOTH COMPANIES ARE SUPPOSED TO MAKE THEIR BEST AND FINAL OFFERS BY FEBRUARY FIRST WHICH PARAMOUNT IS PROMOTING AS SUPERBID TUESDAY AFTER SUPERBOWL SUNDAY ONE FACTOR THE PARAMOUNT BOARD TRIED TO TAKE INTO ACCOUNT IN EVALUATING THE BIDS IS WHAT PARAMOUNT ADVISERS CALL THE VICTORY PARADOX UNDER WHICH THE CONTESTANT THAT HAS THE BETTER BID SEES ITS STOCK GET HIT IN THE MARKETPLACE AS A RESULT LAZARD ATTEMPTED TO VALUE Q. V. C.'S BID BASED ON ITS STOCK PRICE WHEN Q. V. C. WAS PERCEIVED TO HAVE THE WINNING BID SO THAT IT WOULD BE COMPARABLE TO THE VALUATION OF VIACOM'S BID WHEN TRADERS BELIEVE VIACOM HAS THE BETTER BID WHEN Q. V. C. WAS THOUGHT TO BE THE WINNER ITS STOCK TRADED AS LOW AS THIRTY EIGHT DOLLARS A SHARE FAR BELOW ITS CLOSING PRICE OF FORTY FOUR DOLLARS A SHARE IN COMPOSITE TRADING FRIDAY ON THE NASDAQ STOCK MARKET HOWEVER ONE PERSON CLOSE TO Q. V. C. COMPLAINED THAT SUCH A METHOD COULD HAVE RESULTED IN LAZARD VALUING Q. V. C.'S STOCK AT A LEVEL FIVE DOLLARS OR SIX DOLLARS LOWER THAN ITS CURRENT MARKET PRICE WHILE VALUING VIACOM STOCK AT ITS CURRENT MARKET PRICE THE EXACT NUMBERS LAZARD USED COULDN'T BE OBTAINED AND A SPOKESMAN FOR LAZARD DECLINED TO COMMENT BUT LAZARD WAS UNDERSTOOD TO HAVE USED SEVERAL OF THE SAME VALUATION METHODOLOGIES THAT IT HAS USED THROUGHOUT THE CONTEST PETER SCHOENFELD VICE CHAIRMAN AND HEAD OF PROPRIETARY TRADING AT WERTHEIM SCHRODER AND COMPANY SAID HE BELIEVED THE PARAMOUNT BOARD ACTED RATIONALLY IN ENDORSING THE VIACOM BID MR. SCHOENFELD EXPLAINED THAT ROUGHLY SEVENTY FIVE PERCENT OF VIACOM'S BID COMPRISES CASH AND A CONTINGENT VALUE RIGHT THAT LOCKS IN A MINIMUM VALUE EVEN IF THE PRICE OF VIACOM'S STOCK FALLS BY COMPARISON HE SAID ONLY ABOUT FIFTY FIVE PERCENT OF Q. V. C.'S BID INCLUDES CASH OR OTHER FIXED VALUES AT THIS POINT WE WOULD BE TENDERING OUR SHARES TO VIACOM HE SAID MR. SCHOENFELD ADDED THAT THE BOARD'S ACTION INCREASES THE LIKELIHOOD THAT Q. V. C. COULD LOSE THE CONTEST IF IT DIDN'T REVISE ITS BID BY JANUARY THIRTY FIRST VIACOM COULD WIN THE CONTEST IF Q. V. C. DIDN'T RAISE ITS BID BY THAT DATE AND VIACOM GARNERED FIFTY POINT ONE PERCENT OF PARAMOUNT SHARES UNDER ITS OFFER BARRY DILLER Q. V. C.'S CHAIRMAN CONTINUED TO COURT TAKEOVER STOCK TRADERS LAST FRIDAY MEETING WITH TRADERS FROM ABOUT SEVEN FIRMS THAT SPECIALIZE IN TAKEOVER TRADING KNOWN AS ARBITRAGE ALLOWING TRADERS WITH BIG PARAMOUNT POSITIONS THE CHANCE TO SWAP IDEAS WITH MR. DILLER COULD HELP IN A CLOSE FOUGHT BIDDING FINALE BECAUSE THE CASE FOR Q. V. C.'S STOCK PRICE DEPENDS HEAVILY ON THE PERCEPTION OF MR. DILLER'S ABILITIES AS A MANAGER OF ENTERTAINMENT ASSETS ONE PERSON IN THE Q. V. C. CAMP NOTED THAT THE OUTCOME OF THE DEAL IS NOW IN THE HANDS OF VERY SHORT TERM PLAYERS THE TOUGH PART OF ALL OF THIS IS THAT AFTER THE PARAMOUNT DEAL IS DONE MOST OF THEM WILL BE GONE THIS PERSON SAID VIACOM IS OFFERING ONE HUNDRED SEVEN DOLLARS A SHARE IN CASH FOR FIFTY POINT ONE PERCENT OF PARAMOUNT SHARES PLUS SECURITIES FOR THE REMAINING FORTY NINE POINT NINE PERCENT Q. V. C. IS OFFERING NINETY TWO DOLLARS IN CASH FOR FIFTY POINT ONE PERCENT PLUS SECURITIES FOR FORTY NINE POINT NINE PERCENT MR. DILLER IS SAID TO BE CONSIDERING BOOSTING THE CASH IN HIS BID AS WELL AS ADDING SOME MECHANISM FOR BOLSTERING THE PRICE OF Q. V. C. STOCK BEING OFFERED AS PART OF HIS CASH AND STOCK BID IF HE DOES COME BACK WITH A REVISED BID AS TRADERS CONSIDER LIKELY IT PROBABLY WILL BE SOMETIME DURING THE MIDDLE TO LATTER PART OF THIS WEEK Q. V. C. WILL WANT TO SEE WHERE VIACOM'S STOCK TRADES EARLY THIS WEEK WITH THE PARAMOUNT BOARD'S ENDORSEMENT BUT IT MAY ALSO WANT TO MAKE THE CHANGE A FEW DAYS BEFORE JANUARY THIRTY FIRST TO ALLOW ITS OWN STOCK TO SETTLE AT ITS NEW LEVEL AS WELL IN AN INTERVIEW MR. DILLER SAID THE BOARD'S DECISION CAME AS NO SURPRISE QUOTE WE WERE DISAPPOINTED QUOTE HE SAID WE CONTINUE TO BELIEVE OUR OFFER IS SUPERIOR BEYOND THE SHORT TERM WHILE WE MAY BE ACCUSED OF TILTING AT WINDMILLS WE BELIEVE YOU CAN'T ANALYZE THIS TRANSACTION WITHOUT A LONG TERM VIEW BUT THE Q. V. C. CHIEF SAID HE COULDN'T SAY WHEN Q. V. C. WOULD RESPOND WITH ANOTHER OFFER OR EVEN IF IT WOULD BOTH Q. V. C. AND VIACOM SUBMITTED MEMOS TO THE PARAMOUNT BOARD BEFORE THE MEETING TOUTING THE VALUE OF THEIR OFFERS AND Q. V. C. ADVISERS AT ALLEN AND COMPANY WERE ANGERED THAT THEIR MEMO WAS GIVEN TO VIACOM BEFORE THE MEETING ALLOWING VIACOM ADVISERS AT SMITH BARNEY SHEARSON INCORPORATED THE CHANCE TO RESPOND BUT ONE PERSON CLOSE TO THE BOARD SAID THE DIRECTORS DISCOUNTED THE MEMOS AS SELLING DOCUMENTS ANYWAY AND CALLED THE DISPUTE A TEMPEST IN A TEAPOT LAWRENCE E. TILTON FIFTY EIGHT YEARS OLD FORMERLY PRESIDENT OF THE LEDERLE CONSUMER HEALTH DIVISION WAS NAMED PRESIDENT OF THIS CHEMICAL CONCERN'S LEDERLE LABORATORIES DIVISION SUCCEEDING EDWARD V. FRITZKY FORTY THREE WHO WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF FIFTY THREE POINT FIVE PERCENT OWNED IMMUNEX CORPORATION GARY S. BALKEMA THIRTY EIGHT FORMERLY GENERAL MANAGER OF THE LEDERLE CONSUMER HEALTH PRODUCTS DIVISION WAS NAMED VICE PRESIDENT OF LEDERLE CONSUMER HEALTH DIVISION KEITH R. MCKENNON A DIRECTOR WAS NAMED CHAIRMAN OF THIS ELECTRIC UTILITY HE SUCCEEDS DON C. FRISBEE SEVENTY YEARS OLD WHO IS RETIRING FROM THE POST TO BECOME CHAIRMAN EMERITUS EFFECTIVE FEBRUARY NINTH MR. MCKENNON SIXTY RECENTLY RETIRED AS CHIEF EXECUTIVE OFFICER OF DOW CORNING CORPORATION AS REPORTED EARLIER FREDERICK W. BUCKMAN WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING A. M. GLEASON SIXTY THREE WHO WAS NAMED VICE CHAIRMAN MR. BUCKMAN IS FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CONSUMERS POWER COMPANY A SUBSIDIARY OF C. M. X. ENERGY CORPORATION EQUITABLE COMPANIES MICHAEL E. FISHER FIFTY TWO YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT AT THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE U. S. DIVISION OF THIS INSURANCE AND ASSET MANAGEMENT COMPANY IN THE NEW POSITION MR. FISHER WILL COORDINATE INSURANCE AND ANNUITY PRODUCT MARKETING HE IS A FORMER MARKETING EXECUTIVE AT THE INSTITUTIONAL ASSET MANAGEMENT UNIT OF BANKERS TRUST COMPANY MARK C. GRAY FORTY FIVE YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS DIGITAL ELECTRONIC GRAPHICS EQUIPMENT AND SYSTEMS MAKER MR. GRAY FORMERLY EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER AT SONY CORPORATION'S BUSINESS AND PROFESSIONAL GROUP SUCCEEDS ALFRED O. P. LEUBERT SEVENTY ONE WHO RESIGNED LAST YEAR CHYRON VICE CHAIRMAN PETER J. LANCE FIFTY SEVEN HAD BEEN ACTING PRESIDENT AND CHIEF OPERATING OFFICER FOLLOWING MR. LEUBERT'S RESIGNATION IN MARCH CHYRON IS SIXTY NINE PERCENT OWNED BY PESA INCORPORATED A UNIT OF MADRID BASED PESA ELECTRONICA S. A. A BROADCAST ELECTRONIC COMPANY SUMMIT BANCORP ROBERT G. COX FIFTY TWO YEARS OLD WAS NAMED TO SUCCEED THOMAS D. SAYLES JUNIOR AS CHIEF EXECUTIVE OF SUMMIT AND CHAIRMAN OF ITS SUMMIT BANK MR. COX WAS MOST RECENTLY PRESIDENT AND CHIEF EXECUTIVE OF THE UNIT AND PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT MR. COX'S PREVIOUS DUTIES WILL NOW BE CARRIED OUT BY A MANAGEMENT EXECUTIVE COMMITTEE REPORTING TO HIM MR. SAYLES SIXTY TWO WILL CONTINUE AS CHAIRMAN AT THE FOUR POINT THREE BILLION DOLLAR BANK HOLDING COMPANY AND AS A MEMBER OF ITS EXECUTIVE COMMITTEE UNTIL HE RETIRES IN LATE NINETEEN NINETY SIX FOUR SENIOR VICE PRESIDENTS WERE NAMED AT THIS PUBLISHER AND DIRECT MAIL MARKETER PETER J. DAVENPORT FIFTY THREE YEARS OLD SENIOR VICE PRESIDENT GLOBAL DIRECT MARKETING KENNETH A. GORDON FIFTY SIX SENIOR VICE PRESIDENT AND PRESIDENT U. S. JOSEPH M. GRECKY FIFTY FOUR SENIOR VICE PRESIDENT HUMAN RESOURCES AND ANTHONY W. RUGGIERO FIFTY TWO SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ALL FOUR WERE FORMERLY VICE PRESIDENTS AND THE POSTS TO WHICH THEY WERE NAMED ARE NEW MONEY MARKET MUTUAL FUND ASSETS ROSE ONE POINT ONE NINE BILLION DOLLARS TO FIVE HUNDRED NINETY NINE POINT SIX SIX BILLION DOLLARS FROM A REVISED FIVE HUNDRED NINETY EIGHT POINT FOUR SEVEN BILLION DOLLARS IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF SIX HUNDRED FIFTY ONE RETAIL MONEY MARKET MUTUAL FUNDS INCREASED BY NINE HUNDRED EIGHTY NINE POINT THREE MILLION DOLLARS TO FOUR HUNDRED ONE POINT SEVEN ONE BILLION DOLLARS THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF FOUR HUNDRED FOUR TAXABLE MONEY MARKET FUNDS ROSE ONE POINT FOUR TWO BILLION DOLLARS TO THREE HUNDRED TEN POINT SIX ONE BILLION DOLLARS ASSETS OF TWO HUNDRED FORTY SEVEN RETAIL TAX EXEMPT FUNDS FELL FOUR HUNDRED THIRTY THREE MILLION DOLLARS TO NINETY ONE POINT OH NINE BILLION DOLLARS ASSETS OF THE TWO HUNDRED EIGHTY INSTITUTIONAL MONEY MARKET FUNDS ROSE ONE HUNDRED NINETY THREE POINT FOUR MILLION DOLLARS TO ONE HUNDRED NINETY SEVEN POINT NINE FIVE BILLION DOLLARS AMONG INSTITUTIONAL FUNDS THE ASSETS OF TWO HUNDRED TWENTY SIX TAXABLE MONEY MARKET FUNDS ROSE SEVEN HUNDRED TWENTY EIGHT POINT ONE MILLION DOLLARS TO ONE HUNDRED SEVENTY FIVE POINT TWO EIGHT BILLION DOLLARS ASSETS OF FIFTY FOUR TAX EXEMPT FUNDS FELL BY FIVE HUNDRED THIRTY FOUR POINT SEVEN MILLION DOLLARS TO TWENTY TWO POINT SIX SEVEN BILLION DOLLARS CAPITAL CITIES SLASH A. B. C. IN A CLASSIC QUOTE IF YOU CAN'T LICK THEM JOIN THEM QUOTE STRATEGY IS FORMING A DIVISION TO SELL ADVERTISING IN NEW OR ALTERNATIVE MEDIA FROM VIDEO SCREENS IN CONVENIENCE STORES TO PERSONAL COMPUTERS THE DIVISION CAPITAL CITIES SLASH A. B. C. NEW MEDIA SALES ALREADY HAS TWO CLIENTS NEW YORK BASED SCREENVISION CINEMA NETWORK THE NATION'S LARGEST DISTRIBUTOR OF COMMERCIALS IN THEATERS AND MINNEAPOLIS BASED AMERICAN CONSUMER SERVICE NETWORK A COMPANY THAT PLANS TO PLACE DIGITAL MONITORS IN FIVE THOUSAND CONVENIENCE STORES AROUND THE COUNTRY LATER THIS YEAR CAPITAL CITIES SLASH A. B. C.'S AGGRESSIVE MOVE UNDERSCORES THE RAPIDLY CHANGING COMMUNICATIONS LANDSCAPE RATHER THAN REMAINING COMPLACENT IT'S STRIVING TO EXPAND ITS SALES BASE BEYOND ITS BROADCAST TELEVISION NETWORK RADIO NETWORKS AND PUBLISHING DIVISIONS TO INCLUDE MULTIMEDIA CLIENTS WE'RE DIVERSIFYING TO REPRESENT NEW MEDIA THAT ARE POPPING UP ALL OVER THE PLACE SAYS JOHN WATKINS PRESIDENT OF BOTH CAPITAL CITIES SLASH A. B. C.'S NATIONAL TELEVISION SALES AND THE NEW DIVISION HE SAYS PART OF THE STRATEGY IS TO SELL THE A. B. C. NETWORK AND A CLIENT SUCH AS SCREENVISION AS A PACKAGE TO ADVERTISERS SCREENVISION PROVIDES ADVERTISING IN A MEDIUM THAT IS T. V.'S DIRECT COMPETITOR MOVIES BUT THAT DOESN'T DAUNT MR. WATKINS IN TERMS OF EFFECTIVE ADVERTISING HE SAYS NOTHING BEATS ADVERTISING ON THE BIG SCREENS IN MOVIE THEATERS SCREENVISION COMMISSIONED FOUR STUDIES FROM THREE RESEARCH COMPANIES LAST YEAR TO DETERMINE RECALL LEVELS OF COMMERCIALS SHOWN BEFORE THE MAIN FEATURE IN MOVIE THEATERS ONE STUDY OF TWO HUNDRED PEOPLE BY FADER WILLIAMS A NEW YORK RESEARCH COMPANY SPECIALIZING IN COMMUNICATIONS DATA FOUND THAT ONE DAY LATER SEVENTY SEVEN PERCENT WERE ABLE TO REMEMBER WHAT WAS ADVERTISED THE OTHER STUDIES SHOWED SIMILAR RESULTS MOVIE THEATERS HAVE GREAT SURROUND SOUND AND SIXTY FOOT SCREENS WITH LARGER THAN LIFE IMAGES MR. WATKINS SAYS YOU TEND TO REMEMBER THOSE IMAGES PERHAPS THAT IS WHY MCDONALD'S IS SCHEDULED TO RUN ITS FIRST ADS IN MOVIE THEATERS BEGINNING IN MID FEBRUARY ADDITIONALLY DIET COKE PLANS TO SHOW ITS NEW CAMPAIGN FROM INTERPUBLIC GROUP'S LOWE AND PARTNERS NEXT MONTH THESE COMPANIES JOIN SUCH DIVERSE CLIENTS AS AMERICAN TELEPHONE AND TELEGRAPH ACCLAIM ENTERTAINMENT MAKER OF VIDEO GAMES SONY MUSIC EVEREADY BATTERIES GENERAL MOTORS CHRYSLER HASBRO NESTLE THE FOX NETWORK AND YES THE A. B. C. NETWORK IN ADVERTISING ON THE BIG SCREEN IT WASN'T SO LONG AGO THAT CONSUMERS AFTER SPENDING UPWARD OF SEVEN DOLLARS AND FIFTY CENTS FOR A MOVIE TICKET WOULD ANGRILY HURL CATCALLS IF A COMMERCIAL APPEARED ON THE SCREEN BUT ADVERTISERS HAVE GOTTEN SAVVIER MR. WATKINS SAYS SELDOM FOR EXAMPLE DO THEY RUN A T. V. COMMERCIAL IN MOVIE THEATERS INSTEAD THEY TRY FOR A FRESH LOOK MOVIE ADS AVERAGE FORTY FIVE SECONDS IN LENGTH INSTEAD OF T. V.'S THIRTY SECONDS THEATERS SUBSCRIBING TO SCREENVISION'S SERVICES SHOW A MAXIMUM OF FOUR MINUTES OF COMMERCIALS AND A MINIMUM OF ONE MINUTE THE RELATIONSHIP BETWEEN CAPITAL CITIES SLASH A. B. C. AND SCREENVISION WHICH SUPPLIES COMMERCIALS TO SIX THOUSAND FIVE HUNDRED OF THE APPROXIMATELY TWENTY ONE THOUSAND FIRST RUN SCREENS IN THE U. S. GREW OUT OF A FRIENDSHIP BETWEEN ONE OF SCREENVISION'S OWNERS AND AN EXECUTIVE AT THE GIANT COMMUNICATIONS COMPANY DENNIS FOGARTY SCREENVISION'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAYS HE TOLD ONE OF SCREENVISION'S OWNERS THAT I NEEDED MORE SALES POWER ON THE STREET TO AUGMENT HIS SMALL SALES FORCE OF SEVEN EMPLOYEES THE OWNER REFERRED HIM TO CAPITAL CITIES SLASH A. B. C.'S NEW UNIT QUOTE I HAVE TO GET THE WORD OUT TO MORE AGENCIES AND CLIENTS QUOTE MR. FOGARTY SAYS WITH CAPITAL CITIES SLASH A. B. C. I'M ABLE TO TAP INTO A PROFESSIONAL SALES FORCE I CAN TRIPLE THE NUMBER OF SALES CALLS I CAN MAKE AND IT ADDS A LOT OF PRESTIGE TO HAVE CAPITAL CITIES SLASH A. B. C. SELLING US CAPITAL CITIES SLASH A. B. C. AND SCREENVISION PLAN TO TARGET ENTIRE CATEGORIES THEY FEEL ARE RIPE FOR ADVERTISING IN MOVIE THEATERS INCLUDING FASHION FRAGRANCE AND TOURISM CAPITAL CITIES SLASH A. B. C. IS ENTERING THE BUSINESS JUST AS MOVIE THEATERS ARE BECOMING MORE POPULAR VENUES FOR PRODUCT MERCHANDISING SOME COMPANIES FOR EXAMPLE AREN'T MERELY CONTENT TO PUT ADS ON THE SCREEN ACCLAIM ENTERTAINMENT OYSTER BAY N. Y. IS INTRODUCING A VIDEO GAME VERSION OF ITS POPULAR BASKETBALL ARCADE GAME N. B. A. JAM PARTLY THROUGH ADVERTISING IN MOVIE THEATERS VIDEO GAMES HAVE BECOME AN ENTERTAINMENT MEDIUM SAYS SAM GOLDBERG VICE PRESIDENT OF MARKETING AT ACCLAIM THERE IS GREAT SYNERGY BETWEEN VIDEO GAMES AND MOVIE THEATERS THE IMAGES WE'RE ABLE TO PORTRAY FROM A VIDEO STANDPOINT ARE LARGER THAN LIFE AND LARGER THAN A SMALL T. V. SCREEN CAN ACCOMMODATE ACCLAIM IS ALSO CONDUCTING A NATIONAL SWEEPSTAKES FOR N. B. A. JAM THAT WILL AWARD SIXTY FIVE THOUSAND DOLLARS WORTH OF PRIZES ENTRY FORMS WILL BE AVAILABLE AT THEATER CONCESSION STANDS MR. WATKINS SEES ENDLESS POSSIBILITIES WITH SCREENVISION ONE POTENTIAL SCENARIO A ROCK MUSIC VIDEO COULD BE USED TO ADVERTISE A COMPACT DISK AND ALSO TO PROMOTE QUOTE IN CONCERT QUOTE A LATE NIGHT FRIDAY SERIES ON THE A. B. C. NETWORK DOWN THE ROAD IN THE AGE OF THE INFORMATION SUPERHIGHWAY THERE IS THE POSSIBILITY THAT ADVERTISEMENTS ON PERSONAL COMPUTERS WILL BECOME COMMONPLACE ALREADY ADS FOR SOME COMPANIES RANGING FROM INTERNATIONAL BUSINESS MACHINES TO COORS BEER APPEAR ON PROGRAMS AVAILABLE ON PERSONAL COMPUTERS MR. WATKINS HOPES TO PURSUE THAT BUSINESS AS WELL THE WORLD IS CHANGING SAYS MR. WATKINS ADVERTISERS NO LONGER BUY ONLY NEWSPAPERS MAGAZINES AND TELEVISION WE HAVE TO BE AGGRESSIVE AND WE HAVE TO BE FIRST IN THE SELLING OF ADVERTISING TO THE NEW MEDIA GRIFFIN BACAL IS IN DISCUSSIONS WITH OMNICOM GROUP'S D. D. B. NEEDHAM TO FORM A JOINT VENTURE OR PARTNERSHIP ARRANGEMENT IN ORDER TO HANDLE THE OVERSEAS PORTION OF THE HASBRO ACCOUNT ACCORDING TO OFFICIALS CLOSE TO THE TALKS HASBRO WANTS TO BECOME A LARGER FORCE OVERSEAS AND HAS ASKED GRIFFIN BACAL A NEW YORK BASED AGENCY WITH OVERSEAS OFFICES IN LONDON AND ATHENS TO HELP WITH THE TASK GRIFFIN BACAL IS HASBRO'S LEAD AGENCY BUT GRIFFIN BACAL DOESN'T HAVE THE CAPABILITY ABROAD OF NEEDHAM WHICH IS ALSO A HASBRO AGENCY NEEDHAM OPERATES ONE HUNDRED TWENTY SEVEN OFFICES OVERSEAS INCLUDING SIXTY ONE IN EUROPE DETAILS OF THE TALKS AND OF HOW THE POSSIBLE ALLIANCE WOULD WORK COULDN'T BE DETERMINED AT GRIFFIN BACAL TOM GRIFFIN CO CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND PAUL KURNIT PRESIDENT AND CHIEF OPERATING OFFICER WERE TRAVELING FROM GREECE TO NEW YORK ON FRIDAY AND COULDN'T BE REACHED A NEEDHAM SPOKESMAN DECLINED COMMENT AND A HASBRO SPOKESMAN SAID EXECUTIVES IN LONDON COULDN'T BE REACHED SUSAN D. GILLETTE PRESIDENT OF THE CHICAGO OFFICE OF OMNICOM GROUP'S D. D. B. NEEDHAM SAID FRIDAY SHE IS RELINQUISHING HER ROLE TO SPEND MORE TIME WITH HER FAMILY SHE WILL CONTINUE WITH THE AGENCY PART TIME AS STRATEGIC AND CREATIVE PLANNER OF THE GLOBAL HELENE CURTIS BUSINESS AND AS CONSULTANT ON OTHER UNSPECIFIED ACCOUNTS MS. GILLETTE FORTY THREE YEARS OLD WILL BE SUCCEEDED BY ALAN PILKINGTON FIFTY ONE EXECUTIVE VICE PRESIDENT MANAGING DIRECTOR WHO HAS ALSO BEEN APPOINTED A MANAGING PARTNER OF THE AGENCY RUMORS SURFACED ON MADISON AVENUE IN AUGUST THAT MS. GILLETTE WHO JOINED THE AGENCY IN NINETEEN SEVENTY FIVE AS A COPYWRITER AND WAS THE CREATIVE FORCE BEHIND THE SUCCESSFUL THE NIGHT BELONGS TO MICHELOB FOR ANHEUSER BUSCH WANTED TO RESIGN THE WORD IS SHE CHANGED HER MIND ON MORE THAN ONE OCCASION MS. GILLETTE DIDN'T RETURN PHONE CALLS MS. GILLETTE WAS NAMED PRESIDENT OF THE CHICAGO OPERATION IN NOVEMBER NINETEEN NINETY SUCCEEDING JOEL HOCHBERG WHO BECAME PRESIDENT OF MARKETING AT NEWS CORPORATION'S TWENTIETH CENTURY FOX STUDIOS CUNARD CUNARD LINE LIMITED SELECTED SAATCHI AND SAATCHI'S BACKER SPIELVOGEL BATES WORLDWIDE TO HANDLE ITS WORLD WIDE ADVERTISING ESTIMATED AT TWENTY MILLION DOLLARS B. S. B. SUCCEEDS MARGEOTES FERTITTA AND WEISS FOLLOWING A THREE MONTH REVIEW THAT INCLUDED SAATCHI AND SAATCHI ADVERTISING WELLS RICH GREENE B. D. D. P. B. S. B. AND MARGEOTES B. B. D. O. OMNICOM GROUP'S B. B. D. O. WORLDWIDE NAMED CANDACE WONG CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF B. B. D. O. HONG KONG AND B. B. D. O. SLASH CNUAC THE AGENCY'S VENTURE IN CHINA SUCCEEDING STEVE CHAN WHO WILL CONTINUE AS A SENIOR CONSULTANT ON THE CHINESE MARKET ANHEUSER MEDIA ANHEUSER BUSCH WHICH LEARNED LAST WEEK THAT BUDWEISER AGENCY D'ARCY MASIUS BENTON AND BOWLES WOULD BE BUYING SOME MEDIA FOR BUD RIVAL MILLER BREWING SAID IT HAS REVIEWED THE SITUATION QUOTE IN DETAIL QUOTE AND DOESN'T CONSIDER IT A CONFLICT QUOTE AT THIS TIME QUOTE D'ARCY IS HANDLING THE ASSIGNMENT FROM MILLER A UNIT OF PHILIP MORRIS AS PART OF A MEDIA CONSOLIDATION WITH KRAFT GENERAL FOODS ANOTHER PHILIP MORRIS UNIT THE SUPREME COURT AGREED TO DECIDE WHETHER A FEDERAL LAW BARRING FRAUD IN INITIAL PUBLIC SALES OF STOCK ALSO APPLIES TO RESALES OF THE SHARES THE JUSTICES WILL USE A DISPUTE BETWEEN A NEW YORK INVESTMENT BANKING FIRM ALLEN AND COMPANY AND AN AUSTRALIAN HOLDING COMPANY PACIFIC DUNLOP LIMITED TO DECIDE THE ISSUE ASKED BY THE HIGH COURT FOR ITS VIEWS THE CLINTON ADMINISTRATION HAS ALREADY FILED A BRIEF URGING THE JUSTICES TO INTERPRET THE ANTIFRAUD LAW BROADLY IF JUSTICES FOLLOW THIS ADVICE IT WOULD GIVE PLAINTIFFS AN ADVANTAGE IN LAWSUITS ALLEGING DISHONESTY IN SECURITIES DEALS SECTION TWELVE TWO OF THE SECURITIES ACT OF NINETEEN THIRTY THREE BARS FALSE STATEMENTS OR THE OMISSION OF QUOTE MATERIAL FACTS QUOTE IN SECURITIES SALES INVOLVING QUOTE A PROSPECTUS OR ORAL COMMUNICATION QUOTE THE LAW IS A POTENT WEAPON BECAUSE UNLIKE ANOTHER MAJOR ANTIFRAUD PROVISION SECTION TEN B. OF THE NINETEEN THIRTY FOUR SECURITIES EXCHANGE ACT IT DOESN'T REQUIRE INVESTORS TO PROVE THAT THEY ACTUALLY RELIED ON FRAUDULENT STATEMENTS OR OMISSIONS IN DECIDING WHETHER TO BUY STOCK SECTION TWELVE TWO ALSO ALLOWS FOR BIGGER DAMAGE AWARDS LOWER COURT RULINGS HAVE LED TO CONFUSION OVER WHETHER SECTION TWELVE TWO APPLIES TO SECURITIES TRANSACTIONS OTHER THAN INITIAL PUBLIC OFFERINGS THE JUSTICES PRESUMABLY INTEND TO CLARIFY THE AMBIGUITY A DECISION IS EXPECTED BY EARLY SUMMER IN THE CASE THE HIGH COURT WILL HEAR ALLEN AND COMPANY IS APPEALING A RULING BY THE FEDERAL APPEALS COURT IN CHICAGO WHICH SAID SECTION TWELVE TWO ISN'T RESTRICTED TO INITIAL OFFERINGS ALLEN WAS SUED UNDER SECTION TWELVE TWO IN NINETEEN NINETY BY A UNIT OF PACIFIC DUNLOP THE UNIT ALLEGED THAT THE INVESTMENT BANKING FIRM SOLD IT STOCK IN A BATTERY MANUFACTURING COMPANY WITHOUT DISCLOSING THAT THE COMPANY FACED EXTENSIVE ENVIRONMENTAL LIABILITY CLAIMS A FEDERAL TRIAL JUDGE IN CHICAGO DISMISSED THE SUIT BUT THE APPEALS COURT REVERSED THAT RULING ALLEN THEN APPEALED TO THE SUPREME COURT ALLEN AND COMPANY VERSUS PACIFIC DUNLOP HOLDINGS INCORPORATED SEPARATELY THE HIGH COURT SAID IT WOULD CONSIDER HOW FAR COURTS OR LOCAL GOVERNMENTS MAY GO IN CURBING PROTESTS OUTSIDE ABORTION CLINICS THE JUSTICES WILL EXAMINE A FLORIDA STATE COURT'S ORDER THAT PROTESTERS HAD TO STAY OUT OF A THIRTY SIX FOOT WIDE BUFFER ZONE AROUND A MELBOURNE FLORIDA CLINIC THE CASE COULD HAVE NATIONAL IMPLICATIONS BECAUSE ABORTION RIGHTS ADVOCATES HAVE SOUGHT SIMILAR PROTECTION AGAINST PROTESTS AND BLOCKADES IN MANY STATES ANTIABORTION ACTIVISTS CLAIM THAT THE FLORIDA COURT ORDER VIOLATES THEIR FIRST AMENDMENT RIGHT TO SPEAK FREELY DEFENDERS OF THE MELBOURNE CLINIC AND OTHER ABORTION PROVIDERS IN THE STATE COUNTER THAT THE PROTESTERS HARASSED PATIENTS AND EMPLOYEES THE TRIAL JUDGE IN THE CASE FOUND THAT MEMBERS OF OPERATION RESCUE A MILITANT ANTIABORTION GROUP HAD OBSTRUCTED THE CLINIC'S ENTRANCE FOLLOWED PATIENTS AND CLINIC STAFF MEMBERS IN A STALKING MANNER AND ON SOME OCCASIONS THREATENED VIOLENCE AGAINST PATIENTS AND EMPLOYEES FLORIDA'S SUPREME COURT UPHELD THE JUDGE'S ORDER BUT ANTIABORTION ACTIVISTS APPEALING THIS DECISION POINTED OUT THAT IN A SEPARATE CASE INVOLVING THE SAME ORDER THE FEDERAL APPEALS COURT IN ATLANTA SAID THAT THE ORDER WAS UNCONSTITUTIONAL BECAUSE IT RESTRICTED THE PROTESTERS' EXPRESSION BASED ON THEIR POINT OF VIEW AGREED TO DECIDE WHETHER UNION MEMBERS MAY USE A FEDERAL CIVIL RIGHTS STATUTE TO SUE STATE OFFICIALS FOR FAILING TO ENFORCE STATE LABOR LAWS THE CLINTON ADMINISTRATION WHICH FILED A BRIEF AT THE JUSTICES' REQUEST SAID THAT EMPLOYEES WHOSE COLLECTIVE BARGAINING AGREEMENTS ARE GOVERNED BY FEDERAL LAW SHOULDN'T BE DENIED ADDITIONAL PROTECTIONS PROVIDED BY A STATE LABOR LAW CONSENTED TO HEAR A SEPARATE LABOR LAW CASE IN WHICH THE QUESTION IS WHETHER AIRLINE AND RAILROAD WORKERS MAY SUE THEIR EMPLOYERS IN STATE COURTS FOR ALLEGEDLY RETALIATORY FIRINGS THE JUSTICES WILL CONSIDER AN APPEAL BY HAL INCORPORATED'S HAWAIIAN AIRLINES OF A LOWER COURT RULING THAT SAID SUCH SUITS MAY BE FILED UNDER STATE LAWS HAWAIIAN AIRLINES ARGUED THAT A FEDERAL LABOR RELATIONS STATUTE GOVERNING THE RAILROAD AND AIRLINE INDUSTRIES SUPERSEDES STATE LAWS AND REQUIRES WORKERS TO RESOLVE THEIR GRIEVANCES IN OUT OF COURT ARBITRATION PROCEEDINGS DOMESTIC PRODUCTION AND SALES BY TOYOTA MOTOR CORPORATION AND NISSAN MOTOR COMPANY JAPAN'S TWO LARGEST CAR MAKERS CONTINUED TO SLIDE IN DECEMBER BOTH TOYOTA AND NISSAN ALSO REPORTED A SHARP DECLINE IN THEIR DOMESTIC PRODUCTION AND SALES FOR THE CALENDAR YEAR NINETEEN NINETY THREE WHILE OVERSEAS PRODUCTION BY BOTH COMPANIES SOARED FROM THE NINETEEN NINETY TWO LEVELS THEIR AUTO EXPORTS FROM JAPAN SHOWED SHARP DECREASES AFFECTED BY SLUGGISH ECONOMIES WORLD WIDE AND THE APPRECIATION OF THE YEN A RISE IN THE YEN'S VALUE AGAINST OTHER CURRENCIES MAKES EXPORTS MORE EXPENSIVE FOR JAPANESE MANUFACTURERS IN DECEMBER TOYOTA HELD A TWENTY NINE PERCENT SHARE OF THE JAPANESE MARKET DOWN TWO POINT THREE PERCENTAGE POINTS FROM A YEAR EARLIER NISSAN SAID IT HAD A TWENTY ONE POINT ONE PERCENT SHARE IN THE DOMESTIC MARKET IN DECEMBER DOWN ZERO POINT FOUR PERCENTAGE POINT FROM A YEAR EARLIER TOYOTA'S DECEMBER OVERALL PRODUCTION A COMBINATION OF PASSENGER CARS AND COMMERCIAL VEHICLES WITHIN JAPAN TOTALED TWO HUNDRED FORTY SIX THOUSAND SIX HUNDRED THIRTY FOUR UNITS DOWN TWENTY PERCENT FROM A YEAR EARLIER WHILE DOMESTIC SALES PLUMMETED FIFTEEN PERCENT TO ONE HUNDRED THIRTY FIVE THOUSAND SIX HUNDRED THIRTY SIX IN DECEMBER NISSAN'S TOTAL DOMESTIC OUTPUT FELL TWENTY FOUR PERCENT TO ONE HUNDRED SEVENTEEN THOUSAND FOUR HUNDRED NINETY FOUR UNITS WITH DOMESTIC SALES FALLING THIRTEEN PERCENT TO SEVENTY TWO THOUSAND EIGHT HUNDRED SIXTY FIVE FOR ALL OF NINETEEN NINETY THREE TOYOTA SAID TOTAL SALES FELL SEVEN POINT FOUR PERCENT TO TWO MILLION SIXTY FIVE THOUSAND UNITS PRODUCTION FELL NINE POINT FOUR PERCENT TO THREE MILLION FIVE HUNDRED SIXTY TWO THOUSAND CARS THE COMPANY ENDED THE YEAR WITH A THIRTY ONE POINT NINE PERCENT SHARE IN THE JAPANESE MARKET DOWN ZERO POINT TWO PERCENTAGE POINT FROM THE PREVIOUS YEAR TOTAL VEHICLE SALES IN JAPAN DURING NINETEEN NINETY THREE WERE ROUGHLY SIX MILLION FOUR HUNDRED SEVENTY THOUSAND UNITS DOWN AROUND FOUR HUNDRED NINETY THOUSAND UNITS FROM THE NINETEEN NINETY TWO LEVEL TOYOTA NOTED OUTSIDE OF THE JAPANESE MARKET TOYOTA SAID A DECREASE IN EXPORTS TO NORTH AMERICA EUROPE AND THE MIDDLE EAST MORE THAN OFFSET AN INCREASE IN ITS ASIA AND OCEANIA SALES PUSHING DOWN THE TOTAL EXPORT FIGURE TO ONE MILLION ONE HUNDRED THIRTY TWO THOUSAND DOWN ELEVEN PERCENT FROM A YEAR EARLIER OVERSEAS OUTPUT HOWEVER JUMPED SIXTEEN PERCENT FROM THE PREVIOUS YEAR TO EIGHT HUNDRED EIGHTY EIGHT THOUSAND FIVE HUNDRED FIFTY NINE CARS BECAUSE OF INCREASED TRUCK PRODUCTION AT ITS BRITISH OPERATIONS AND THE START OF NORMAL PRODUCTION AT A PLANT IN CALIFORNIA NISSAN'S AUTO EXPORTS WERE DEPRESSED BY TWENTY SEVEN PERCENT ON THE YEAR TO SIX HUNDRED EIGHTY FOUR THOUSAND EIGHTY EIGHT UNITS AMID SLUGGISH ECONOMIES IN MAJOR CONSUMING COUNTRIES HOWEVER ITS OVERSEAS PRODUCTION CONTINUED TO INCREASE STEADILY REACHING ONE MILLION SIX THOUSAND UNITS UP SEVENTEEN PERCENT FROM THE PREVIOUS YEAR C. S. X. CORPORATION'S SEA LAND SERVICE INCORPORATED SAID IT WILL SPEND TWO HUNDRED FIFTY MILLION DOLLARS FOR FOUR HIGH PERFORMANCE FUEL EFFICIENT CONTAINER VESSELS AND MIGHT ALSO MODIFY THREE VESSELS IN ITS CURRENT FLEET SEA LAND A CARGO CARRIER BASED IN LIBERTY CORNER N. J. SAID THE VESSELS WILL BE USED IN THE COMPETITIVE TRANS PACIFIC TRADE THE COMPANY SAID IT INTENDS TO SIGN CONSTRUCTION CONTRACTS WITH JAPAN'S ISHIKAWAJIMA HARIMA HEAVY INDUSTRIES COMPANY DELIVERY IS SCHEDULED FOR THE SECOND HALF OF NINETEEN NINETY FIVE AND FOR EARLY NINETEEN NINETY SIX BANCO ESPIRITO SANTO OF PORTUGAL SAID ITS UNCONSOLIDATED PROFIT ROSE FIFTEEN PERCENT IN NINETEEN NINETY THREE TO TWENTY POINT TWO BILLION PESETAS ONE HUNDRED FORTY ONE POINT SEVEN MILLION DOLLARS FROM NINETEEN NINETY TWO ESPIRITO SANTO DIDN'T SPECIFY IF THE PROFIT WAS NET OR PRETAX AND DIDN'T GIVE A YEAR EARLIER FIGURE CONSOLIDATED RESULTS AREN'T YET AVAILABLE BUT WILL BE ONLY MARGINALLY DIFFERENT FROM PARENT BANK RESULTS THE BANK SAID ESPIRITO SANTO'S UNCONSOLIDATED CASH FLOW ROSE SIXTEEN PERCENT IN NINETEEN NINETY THREE TO FIFTY NINE BILLION PESETAS THE BANK SAID WITHOUT GIVING YEAR EARLIER FIGURES BANKING ACTIVITY REVENUE GREW SEVEN POINT SIX PERCENT IN NINETEEN NINETY THREE WHILE OPERATING COSTS GREW ONE POINT SIX PERCENT THE BANK SAID WITHOUT PROVIDING ESCUDO FIGURES A NEWS PHOTO FROM TOKYO FRIDAY SAID IT ALL JAPANESE LEGISLATORS WERE ON VIEW CHEERING DEFEAT OF PRIME MINISTER MORIHIRO HOSOKAWA'S EFFORT TO CUT OFF THEIR ACCESS TO GRAFT POLITICAL ARROGANCE IS NOT UNIQUE TO ANY COUNTRY BUT SELDOM HAS IT BEEN CAPTURED ON FILM WITH SUCH CLARITY WHILE JAPAN'S LAWMAKERS WERE GUARDING THEIR INALIENABLE RIGHT TO BOODLE RUSSIA'S NEWLY ELECTED DUMA WAS DISPLAYING ALMOST EQUAL CONCUPISCENCE LED BY EXCOMMUNISTS MEMBERS GOT RIGHT DOWN TO THE IMPORTANT BUSINESS OF SELF ENRICHMENT THEY VOTED THEMSELVES SALARIES EQUAL TO THOSE OF CABINET MINISTERS FORTY EIGHT DAYS OF VACATION FREE AIR AND RAIL TRANSPORTATION BONUSES FOR WORK OF QUOTE SPECIAL INTENSITY QUOTE LUXURY HOUSING AND CHAUFFEURED CARS COURTIERS OF THE CZARS WOULD HAVE APPLAUDED THE DISDAIN THESE WORTHIES SHOWED FOR ANY OPINIONS THE POVERTY STRICKEN MASSES MIGHT HAVE OF THEIR EXERCISE IN SELF AGGRANDIZEMENT THE GREED OF THE JAPANESE AND RUSSIAN POLITICAL CLASSES IS ENOUGH TO WEAKEN ANYONE'S FAITH IN DEMOCRACY BUT KEEP ONE THING IN MIND THE CORRUPTION HAS ALWAYS BEEN THERE IN BOTH COUNTRIES WHAT IS DIFFERENT NOW IS THAT IT FINALLY HAS BEEN PUT ON PUBLIC DISPLAY THE OLD SOVIET COMMUNIST PARTY WITH THE PRESS UNDER CONTROL AND K. G. B. THUGS ON CALL TO CHARM WOULD BE CRITICS WITH BLACKJACKS HAD LITTLE NEED TO WORRY ABOUT NEWS OF PARTY PLUNDERING MAKING THE MORNING HEADLINES JAPAN'S LONG RULING LIBERAL DEMOCRATIC PARTY WAS FAR MORE SUBTLE BUT NOT MUCH LESS EFFECTIVE NOW HOWEVER RUSSIA'S NEO COMMUNISTS AND THE L. D. P. BOTH HAVE STRONG POLITICAL OPPOSITION THE REFORMIST BLOC IN THE DUMA RUSSIA'S CHOICE CALLED THOSE WHO VOTED FOR THE PAY AND PERQUISITE PACKAGE IRRESPONSIBLE THE RUSSIAN PRESS WAS NOT AMUSED IN JAPAN THE BOODLERS STILL HAVE MR. HOSOKAWA HIS GOVERNING COALITION AND PUBLIC OPINION TO CONTEND WITH NEITHER THE RUSSIAN NEO COMMUNISTS NOR THE JAPANESE OLD GUARD WILL BE ABLE TO PUT THE LID BACK ON THEIR DOINGS ANYTIME SOON THE COMBINATION OF ADVERSARIAL POLITICS AND ECONOMIC DIFFICULTIES MEANS THAT POLITICIANS WILL BE OBSERVED CLOSELY BOTH BY THEIR OWN ELECTORATES AND THE INTERNATIONAL COMMUNITY WHAT THE CONSEQUENCES WILL BE ARE NOT KNOWABLE BUT THE FACT THAT BOTH COUNTRIES NOW HAVE OPEN MORE DEMOCRATIC POLITICAL SYSTEMS CERTAINLY WILL HAVE CONSEQUENCES THE POLITICIANS IN BOTH PLACES CAN EXPECT TO BE HELD TO HIGHER STANDARDS THAN IN THE PAST FOR GOOD REASONS THE WORLD IS MORE CONCERNED ABOUT THE FUTURE OF REFORM IN RUSSIA THAN IN JAPAN RUSSIA FOR ALL ITS ECONOMIC DISORDER STILL IS A DANGEROUS NUCLEAR POWER IT IS ONLY NOW EMERGING RATHER CHAOTICALLY FROM THE DARKNESS OF TOTALITARIANISM WHEREAS JAPAN ACCOMPLISHED THAT NEARLY A HALF CENTURY AGO IT IS POOR AND HENCE RELATIVELY UNSTABLE WHEREAS JAPAN IS RICH AND FOR ALL ITS PROBLEMS HAS ESSENTIALLY SOUND POLITICAL AND ECONOMIC INSTITUTIONS THE NEWS THAT RUSSIAN VOTERS THEMSELVES SHOWED STRONG REACTIONARY TENDENCIES IN THE DECEMBER PARLIAMENTARY ELECTIONS WAS UNSETTLING TO THE WORLD AT LARGE AS IT SHOULD HAVE BEEN ONE IS TEMPTED TO ASK IF RUSSIAN VOTERS AFTER NEARLY A CENTURY OF OPPRESSION AND GRIEF ARE INCAPABLE OF LEARNING FROM EXPERIENCE THEIR DEEP SUSPICIONS OF EACH OTHER AND THE OUTSIDE WORLD SEEM TO INCLINE THEM TOWARD THE APPEAL OF DEMAGOGUES BUT IT IS BY NO MEANS TRUE THAT AN END OF RUSSIA'S REFORM HAS BEEN SIGNALLED BY THE STRENGTH OF THE ZHIRINOVSKY BLOC IN THE DUMA THE EMERGENCE OF PRIME MINISTER VIKTOR CHERNOMYRDIN AS A NEW POLITICAL FORCE AND THE PRESENCE OF APPARATCHIKS IN KEY POSTS IN THE CHERNOMYRDIN CABINET REFORMER BORIS FYODOROV WHOSE RESIGNATION FROM GOVERNMENT SENT THE RUBLE TUMBLING LAST WEEK SAID ON THE WEEKEND THAT THIS REACTIONARY SWING ONLY MEANS THAT REFORM HAS BEEN SET BACK A YEAR IT WILL NOT BE REVERSED BARRING ANY UNEXPECTED POLITICAL UPHEAVAL HE IS MOST LIKELY CORRECT WHAT MR. CHERNOMYRDIN DOESN'T SEEM TO HAVE FIGURED OUT YET IS THAT HE IS WALKING INTO A TRAP IF HE FOLLOWS THE PATH HE HAS SUGGESTED AND WILL DESCRIBE IN GREATER DETAIL TODAY HE WILL CREATE MORE MISERY FOR THE RUSSIAN PEOPLE THERE IS SIMPLY NO WAY HE CAN HAVE A SOUND ECONOMY WHILE SUBSIDIZING THE STATE'S INDUSTRIAL DINOSAURS AND THE STATE FARMS HIS NEW AGRICULTURE MINISTER WANTS TO PRESERVE WHILE AT THE SAME TIME MEETING THE MILITARY'S WEAPON DEMANDS WHEREAS MR. FYODOROV AND YEGOR GAIDAR BY THE END OF LAST YEAR HAD MANAGED TO SHARPLY REDUCE THE INFLATION RATE STOP THE DECLINE IN INDUSTRIAL OUTPUT AND RAISE REAL INCOMES MR. CHERNOMYRDIN'S PROGRAM IF FOLLOWED WILL COLLAPSE ALL THOSE GAINS WITH THE WILLING AID OF CENTRAL BANK CHIEF VIKTOR GERASHCHENKO MR. CHERNOMYRDIN HAS AN EXCELLENT CHANCE OF SENDING RUSSIA INTO HYPERINFLATION BEFORE MID YEAR MR. CHERNOMYRDIN KNOWS ALL THE WRONG MOVES OF ECONOMIC POLICY AND NONE OF THE RIGHT ONES AS INFLATION BEGINS TO RAGE HE WILL APPLY PRICE CONTROLS AND RUSSIANS WILL BE QUEUING TO BUY BREAD AND SHOES AGAIN AT THAT POINT THE REFORM PARTIES IN THE RUSSIAN PARLIAMENT LED BY MR. GAIDAR AND THE POPULAR MR. FYODOROV WILL GO ON THE ATTACK ACCUSING MR. CHERNOMYRDIN OF DESTROYING THE PROGRESS REFORM MADE IN ITS EARLY STAGES RUSSIANS WILL BEGIN TO SEE THE BENEFITS OF OPEN POLITICAL DEBATE SOMETHING THEY HAVE GLIMPSED ONLY BRIEFLY IN THE PAST THEIR OWN CIRCUMSTANCES WILL BE A CLUE TO WHO IS RIGHT AND WHO IS WRONG BY GIVING MR. CHERNOMYRDIN THE HELM AT THIS CRUCIAL JUNCTURE BORIS YELTSIN EITHER DELIBERATELY OR UNWITTINGLY GAVE HIM THE MEANS FOR DESTROYING HIMSELF AND THE OTHER REACTIONARY FORCES IN RUSSIA THE AGE OF MARKET ROMANTICISM IS OVER BLUSTERED THE PRIME MINISTER LAST WEEK WHAT MR. CHERNOMYRDIN DOESN'T UNDERSTAND IS THAT THERE IS NOTHING ROMANTIC ABOUT THE MARKET IT IS A CRUEL TASKMASTER ONE THAT LURKED IN THE SHADOWS OF EVEN THE OLD COMMAND ECONOMY IT DESTROYED COMMUNISM AND CAN DESTROY HIM AS WELL IN THE NEW OPEN SYSTEM MR. YELTSIN WILL HAVE LITTLE CHOICE BUT TO FIRE HIM NONE OF THIS IS TO SUGGEST THAT THE OUTER WORLD'S FEARS ARE UNJUSTIFIED ECONOMIC ADVERSITY ALSO COULD GIVE RISE TO A NEW BURST OF REVANCHISM AS THE REACTIONARIES DESPERATELY SEEK A RALLYING CRY RUSSIA'S NEIGHBORS HAVE SOME REASON TO TREMBLE BUT THE GOOD NEWS IS THAT IN TWO IMPORTANT COUNTRIES POLITICS NOW HAS BECOME MUCH MORE OF AN OPEN BOOK IN RUSSIA THERE NOW IS PUBLIC DEBATE JAPAN'S POLITICIANS CAN NO LONGER SUBORDINATE THE GENERAL INTEREST TO THAT OF INDUSTRIAL AND BANKING ELITES THAT PICTURE OF CHORTLING JAPANESE LAWMAKERS MAY SOON BECOME A COLLECTOR'S ITEM EXPLORATION COMPANY OF LOUISIANA INCORPORATED LAFAYETTE LOUISIANA SAID IT IS OFFERING AS MANY AS FIFTY MILLION COMMON SHARES AT FIFTY CENTS EACH THE OIL AND NATURAL GAS COMPANY SAID IT EXPECTS THE OFFERING TO CLOSE BY FRIDAY A SPOKESWOMAN SAID HALF OF THE PROCEEDS WOULD BE USED TO DEVELOP THE BERRY R. COX OIL FIELD IN SOUTH TEXAS AND THE OTHER HALF WOULD BE USED FOR A DRILLING PROGRAM IN CHINA AND FOR GENERAL CORPORATE PURPOSES THE COMPANY HAS ONE HUNDRED THIRTY TWO POINT SEVEN MILLION SHARES OUTSTANDING THE WHITE HOUSE CITING A QUOTE BRIGHTER ECONOMIC FORECAST QUOTE NOW IS PROJECTING A FISCAL NINETEEN NINETY FIVE BUDGET DEFICIT OF LESS THAN ONE HUNDRED EIGHTY BILLION DOLLARS THE NEW DEFICIT ESTIMATE IS TEN BILLION DOLLARS SMALLER THAN A RECENT PUBLIC ESTIMATE BY THE CLINTON ADMINISTRATION IT IS ALSO MUCH NARROWER THAN THE THREE HUNDRED BILLION DOLLAR PLUS FISCAL NINETEEN NINETY FIVE DEFICIT FORECAST BY THE WHITE HOUSE JUST A YEAR AGO ALTHOUGH THAT FORECAST IGNORED SPENDING CAPS IMPOSED BY THE NINETEEN NINETY DEFICIT REDUCTION LAW PRESIDENT CLINTON UNVEILED THE REVISED DEFICIT PROJECTION IN HIS WEEKLY RADIO ADDRESS SATURDAY SAYING HE HAD JUST LEARNED FROM WHITE HOUSE BUDGET DIRECTOR LEON PANETTA THAT THE DEFICIT PROJECTION FOR NEXT FISCAL YEAR IS NOW UNDER ONE HUNDRED EIGHTY BILLION DOLLARS THE PRESIDENT CREDITED HIS ECONOMIC POLICIES WITH SHRINKING THE DEFICIT SAYING THAT STEP BY STEP WE ARE REVIVING OUR ECONOMY FOR THE REVISED FISCAL NINETEEN NINETY FIVE DEFICIT ESTIMATE TO HOLD UP THE ECONOMIC RECOVERY WILL HAVE TO STAY ON TRACK AND CONGRESS WILL HAVE TO COMPLY WITH NEW SPENDING CEILINGS THAT WERE ENACTED LAST SUMMER THE BUDGET FOR FISCAL NINETEEN NINETY FIVE WHICH WILL BEGIN NEXT OCTOBER FIRST IS TO BE RELEASED FEBRUARY SEVENTH MR. PANETTA WHO NOT LONG AGO SAID THE FISCAL NINETEEN NINETY FIVE DEFICIT WOULD BE LESS THAN ONE HUNDRED NINETY BILLION DOLLARS SAID IN A BRIEF STATEMENT ISSUED OVER THE WEEKEND THAT THE DEFICIT HAS NARROWED PRIMARILY FOR TWO REASONS THE FIRST WAS THE SPECIFIC DEFICIT REDUCTION MEASURES IN THE ADMINISTRATION'S ECONOMIC PLAN THE BUDGET DIRECTOR SAID THE SECOND WAS THE BRIGHTER ECONOMIC FORECAST WHICH IS DIRECTLY RELATED TO THE SUCCESS OF THE PRESIDENT'S PLAN IN REDUCING DEFICITS MAKING KEY INVESTMENTS AND EXPANDING TRADE MARKETS MR. PANETTA PROVIDED NO DETAILS ON REVISED SPENDING AND REVENUE PROJECTIONS OR ON THE BRIGHTER ECONOMIC FORECAST HE ALSO WOULDN'T SAY EXACTLY HOW MUCH UNDER ONE HUNDRED EIGHTY BILLION DOLLARS THE FISCAL NINETEEN NINETY FIVE DEFICIT WOULD BE ACCORDING TO ONE WHITE HOUSE OFFICIAL IT COULD BE AS LOW AS ONE HUNDRED SEVENTY FIVE BILLION DOLLARS THE BUDGET DEFICIT HAS GONE FROM A RECORD TWO HUNDRED NINETY BILLION DOLLARS IN FISCAL NINETEEN NINETY TWO TO TWO HUNDRED FIFTY FIVE BILLION DOLLARS IN FISCAL NINETEEN NINETY THREE SOME PRIVATE SECTOR ECONOMISTS SEE IT FALLING TO TWO HUNDRED THIRTY FIVE BILLION DOLLARS OR SO IN THE CURRENT FISCAL YEAR AND PERHAPS LOWER IF ECONOMIC GROWTH CONTINUES TO ACCELERATE SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS SAID HE HOPES THE NEW DEFICIT PROJECTION IS CORRECT BUT ADDED IN AN APPEARANCE ON C. B. S. NEWS'S FACE THE NATION YESTERDAY THAT THE RECOVERY HELPING TO PUSH THE DEFICIT LOWER BEGAN DURING THE BUSH ADMINISTRATION MOODY'S INVESTORS SERVICE INCORPORATED SAID IT DOWNGRADED ITS DEBT RATING ON FIFTY MILLION DOLLARS OF THIS HEATING OIL DISTRIBUTOR'S SUBORDINATED NOTES DUE TWO THOUSAND THREE TO SINGLE B. TWO FROM SINGLE B. ONE MOODY'S SAID THE ACTION REFLECTS THE COMPANY'S INCREASED DEBT AND ITS SUBSTANTIAL INCREASE IN SUBORDINATED DEBT THE COMPANY IT NOTED HAS A LEADING POSITION IN THE HOME HEATING OIL INDUSTRY THE COMPANY DECLINED COMMENT THE PUBLISHING DIVISION OF PARAMOUNT COMMUNICATIONS INCORPORATED SAID IT PLANS TO SHARPLY REDUCE THE NUMBER OF BOOKS PUBLISHED UNDER THE MACMILLAN NAME AFTER IT ACQUIRES THE COMPANY BUT WILL RETAIN A SIGNIFICANT NUMBER OF MACMILLAN INCORPORATED'S ONE THOUSAND ONE HUNDRED STAFFERS PARAMOUNT'S FIVE HUNDRED FIFTY TWO POINT EIGHT MILLION DOLLAR PURCHASE OF MACMILLAN ANNOUNCED LAST NOVEMBER IS SCHEDULED TO CLOSE NEXT MONTH ALREADY THE NATION'S LARGEST PUBLISHER WITH MORE THAN TWO BILLION DOLLARS IN ANNUAL SALES AND NEARLY NINE THOUSAND EMPLOYEES PARAMOUNT PUBLISHING WILL BE STRENGTHENED BY THE MERGER IN SEVERAL HIGH GROWTH AREAS INCLUDING REFERENCE PUBLISHING COLLEGE BOOKS AND CHILDREN'S TITLES MACMILLAN'S REVENUE FOR THE YEAR ENDING IN MARCH IS ESTIMATED AT ABOUT THREE HUNDRED MILLION DOLLARS IT ISN'T CLEAR WHAT OTHER CHANGES MAY BE IN STORE FOR THE COMBINED PUBLISHING OPERATIONS ONCE THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS IS SETTLED BETWEEN RIVAL BIDDERS Q. V. C. NETWORK INCORPORATED AND VIACOM INCORPORATED THERE HAS BEEN SOME SPECULATION THAT WHOEVER ACQUIRES PARAMOUNT MIGHT SPIN OFF OR SELL THE PUBLISHING DIVISION BUT INSIDERS AT BOTH Q. V. C. AND VIACOM DENY THAT IS THEIR PLAN THE CONSOLIDATION PLAN ANNOUNCED FRIDAY BY RICHARD SNYDER PARAMOUNT PUBLISHING'S CHAIRMAN AND JONATHAN NEWCOMB PRESIDENT PUT TO REST FOR NOW CONCERNS THAT THERE WOULD BE MASS LAYOFFS AND CUTBACKS AT MACMILLAN QUOTE THEY DIDN'T GO THROUGH HERE WITH A MACHETE LIKE SOME PEOPLE FEARED QUOTE SAID ONE MACMILLAN EDITOR WHO REQUESTED ANONYMITY PARAMOUNT WILL HOWEVER DISBAND MACMILLAN'S THIRTY FIVE YEAR OLD ATHENEUM UNIT WHICH PUBLISHES FIFTEEN OR TWENTY HIGHBROW FICTION AND NONFICTION TITLES ANNUALLY I THINK THERE IS INEVITABLY SOME SADNESS HERE BECAUSE ALL OF US AT MACMILLAN FORMED A SMALL COHESIVE UNIT AND WE'RE BEING BROKEN UP AND MOVED AROUND SAID LEE GOERNER PUBLISHER OF ATHENEUM MR. GOERNER SAID HE HAS BEEN ASKED TO STAY UNTIL SPRING TO FINISH PUBLISHING THE BOOKS HE HAS UNDER CONTRACT I CAN UNDERSTAND WHY A HUGE COMPANY WOULDN'T WANT TO KEEP A SMALL IMPRINT LIKE THIS HE SAID WHAT WE ARE EXPERIENCING IS RELATIVELY LITTLE DOWNSIZING IN THE CREATIVE AREAS WHERE PRODUCTS ARE DEVELOPED SAID JACK ROMANOS WHO HEADS CONSUMER PUBLISHING AT PARAMOUNT WE DIDN'T BUY MACMILLAN TO MAKE IT GO AWAY ALTHOUGH PARAMOUNT EXECUTIVES DECLINE TO ESTIMATE THE MAGNITUDE OF FINAL STAFF CUTS SOME INSIDERS SAY THEY DON'T EXPECT IT TO BE HIGHER THAN TEN PERCENT OF THE COMBINED STAFF MESSRS SNYDER AND NEWCOMB SAID THE MACMILLAN NAME WILL CEASE TO APPEAR ON ADULT CONSUMER BOOKS OR COLLEGE TEXTBOOKS BUT THE MERGED REFERENCE BOOK DIVISION INCLUDING A NUMBER OF PARAMOUNT UNITS WILL BE NAMED MACMILLAN PUBLISHING IN MOST AREAS WHERE FUNCTIONS ARE DUPLICATED THE PARAMOUNT EDITOR WILL RUN THE MERGED DIVISION AS IN CHILDREN'S BOOKS EVEN THOUGH MACMILLAN'S CHILDREN'S DEPARTMENT DWARFS PARAMOUNT'S IN SIZE THE COMBINED OUTPUT OF PARAMOUNT AND MACMILLAN CHILDREN'S DIVISIONS IS ABOUT SIX HUNDRED FIFTY TITLES A YEAR SAID ONE EXECUTIVE BUT THAT WILL BE CUT TO ABOUT FOUR HUNDRED FIFTY TITLES A YEAR WITH THE ADDITION OF MACMILLAN'S TITLES PARAMOUNT WILL BE ABLE TO JUSTIFY A SEPARATE SALES FORCE FOR CHILDREN'S BOOKS FOR THE FIRST TIME IN THE CONSUMER AREA OF FICTION AND NONFICTION WHILE THE MACMILLAN NAME WILL DISAPPEAR PARAMOUNT SAID IT WILL PUBLISH ABOUT SIXTY TO SEVENTY FIVE TITLES A YEAR UNDER THE SCRIBNER NAME WHICH HAS A LONG TRADITION OF GOOD LITERATURE THE ONLY OTHER FREESTANDING PUBLISHING IMPRINT TO REMAIN WILL BE FREE PRESS KNOWN FOR NONFICTION TITLES WITH A CONSERVATIVE BENT SUCH AS ROBERT BORK'S MEMOIRS PARAMOUNT WILL CONTINUE TO PUBLISH UNDER THE NAMES SIMON AND SCHUSTER POCKET BOOKS TOUCHSTONE AND FIRESIDE IN COLLEGE PUBLISHING PARAMOUNT IS ALREADY A NATIONAL LEADER BUT MACMILLAN WILL ALLOW IT TO FILL OUT OUR PORTFOLIO SAID MR. SNYDER THE PARAMOUNT PUBLISHING CHAIRMAN QUOTE THEY MADE US STRONGER IN SCIENCE AND MATH AND UPPER LEVEL COURSES WHERE WE WERE STRONGER BEFORE IN ENTRY LEVEL COURSES QUOTE THE COMBINED COLLEGE DIVISION WILL BE SO LARGE THAT PARAMOUNT CAN BUILD SIX SPECIALIZED SALES FORCES INSTEAD OF THE TWO IT HAS NOW FOR SCIENCE AND HUMANITIES ONE OF THE SIX DIVISIONS WILL BE IN THE AREA OF ENGLISH AS A SECOND LANGUAGE IN WHICH PARAMOUNT WILL BECOME THE LARGEST U. S. PUBLISHER INDIVIDUALLY SOME EDITORS IN THE MACMILLAN COLLEGE DIVISION COMPLAIN THAT THEIR COUNTERPARTS AT PARAMOUNT HAVE BEEN ASKING TO BE BRIEFED ON WHAT BOOKS HAVE ALREADY BEEN SIGNED UP SO THEY COULD TAKE THEM OVER AND INDICATING THAT THE MACMILLAN STAFFERS WOULD SOON BE OUT OF A JOB PARAMOUNT SAID IT WASN'T AWARE OF ANY SUCH CONVERSATIONS AND THAT SUCH STATEMENTS WOULDN'T REFLECT THE SPIRIT OF THE INTEGRATION WESTINGHOUSE ELECTRIC CORPORATION'S FOURTH QUARTER NET LOSS NARROWED TO FOUR HUNDRED SEVENTY EIGHT MILLION DOLLARS FROM ONE POINT TWO EIGHT BILLION DOLLARS A YEAR EARLIER ALTHOUGH MANY OF ITS UNITS POSTED WEAK RESULTS ON A PER SHARE BASIS THE POWER GENERATION BROADCASTING AND DEFENSE ELECTRONICS CONCERN HAD A LOSS OF ONE DOLLAR AND THIRTY EIGHT CENTS COMPARED WITH A YEAR EARLIER LOSS OF THREE DOLLARS AND SEVENTY FOUR CENTS REVENUE CLIMBED THREE PERCENT TO TWO POINT SIX FOUR BILLION DOLLARS FROM TWO POINT FIVE SIX BILLION DOLLARS THE LATEST QUARTER INCLUDED PREVIOUSLY ANNOUNCED CHARGES OF ABOUT SIX HUNDRED FORTY FOUR MILLION DOLLARS THEY INCLUDED FOUR HUNDRED NINETY THREE MILLION DOLLARS FOR LAYOFFS DIVESTITURES LEGAL SETTLEMENTS AND AN ENVIRONMENTAL CLEANUP AND NINETY FIVE MILLION DOLLARS FOR DISCONTINUED OPERATIONS THE CHARGES ALSO INCLUDED FIFTY SIX MILLION DOLLARS FOR A CHANGE IN HOW THE COMPANY ACCOUNTS FOR POST EMPLOYMENT BENEFITS THE YEAR EARLIER PERIOD INCLUDED A CHARGE OF ONE POINT THREE SIX BILLION DOLLARS OR THREE DOLLARS AND NINETY TWO CENTS A SHARE FOR DISCONTINUED OPERATIONS EXCLUDING THE CHARGES WESTINGHOUSE'S CONTINUING OPERATIONS EARNED ONE HUNDRED TEN MILLION DOLLARS IN THE QUARTER UP FROM SEVENTY NINE MILLION DOLLARS A YEAR AGO MICHAEL H. JORDAN CHAIRMAN AND CHIEF EXECUTIVE CALLED THE RESULTS QUOTE DISAPPOINTING QUOTE BUT SAID QUOTE WE TOOK A NUMBER OF ACTIONS IN THE FOURTH QUARTER TO IMPROVE OUR OPERATING PERFORMANCE ACCELERATE DIVESTITURE OF NONCORE BUSINESSES AND IMPROVE OUR FINANCIAL FLEXIBILITY QUOTE WESTINGHOUSE ALSO WARNED THAT FIRST QUARTER EARNINGS WILL BE DOWN SUBSTANTIALLY FROM YEAR EARLIER NET OF FIFTY NINE MILLION DOLLARS OR FOURTEEN CENTS A SHARE THE COMPANY BLAMED HIGHER PENSION EXPENSE LOWER INCOME FROM LICENSING POWER GENERATION TECHNOLOGY OVERSEAS AND A ONE TIME CHANGE IN THE WAY IT ACCOUNTS FOR NUCLEAR FUEL REVENUE NICHOLAS P. HEYMANN AN ANALYST WITH NATWEST SECURITIES CORPORATION ESTIMATED THE ITEMS WILL COST ABOUT SEVENTY MILLION DOLLARS ON A PRETAX BASIS HE FIGURED THE COMPANY WILL EARN FIVE CENTS TO SIX CENTS A SHARE IN THE FIRST QUARTER WESTINGHOUSE CLOSED AT THIRTEEN POINT SIX TWO FIVE DOLLARS DOWN TWENTY FIVE CENTS IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE FOR ALL OF NINETEEN NINETY THREE WESTINGHOUSE POSTED A NET LOSS OF THREE HUNDRED TWENTY SIX MILLION DOLLARS OR ONE DOLLAR AND SEVEN CENTS A SHARE COMPARED WITH A NINETEEN NINETY TWO NET LOSS OF ONE POINT THREE NINE BILLION DOLLARS OR FOUR DOLLARS AND ELEVEN CENTS A SHARE THE NINETEEN NINETY TWO RESULTS INCLUDED AN ACCOUNTING CHARGE OF THREE HUNDRED THIRTY EIGHT MILLION DOLLARS AND THE CHARGE FOR DISCONTINUED OPERATIONS EXCLUDING CHARGES WESTINGHOUSE SAID ITS NINETEEN NINETY THREE EARNINGS FROM CONTINUING OPERATIONS WERE THREE HUNDRED EIGHTEEN MILLION DOLLARS OR SEVENTY SIX CENTS A SHARE COMPARED WITH THREE HUNDRED FIFTY SEVEN MILLION DOLLARS OR NINETY FIVE CENTS A SHARE IN NINETEEN NINETY TWO REVENUE FELL FOUR PERCENT TO EIGHT POINT EIGHT EIGHT BILLION DOLLARS FROM NINE POINT TWO FIVE BILLION DOLLARS WESTINGHOUSE'S DEFENSE ELECTRONICS UNIT HAD SUBSTANTIALLY HIGHER OPERATING PROFIT IN THE QUARTER AS SHIPMENTS CLIMBED POWER GENERATION'S OPERATING PROFIT ROSE SLIGHTLY AND THE KNOLL GROUP FURNITURE UNIT CUT ITS OPERATING LOSS SUBSTANTIALLY AS NORTH AMERICAN SALES ROSE BUT WESTINGHOUSE'S BROADCASTING UNIT POSTED FLAT OPERATING PROFIT AS STRONG RESULTS IN ITS RADIO AND SATELLITE COMMUNICATIONS BUSINESSES WERE OFFSET BY POOR RESULTS IN TELEVISION THE ENVIRONMENTAL CLEANUP BUSINESS SAW OPERATING PROFIT FALL SUBSTANTIALLY ON LOWER VOLUMES FALLING PRICES AT ITS WASTE INCINERATION BUSINESS AND COST OVERRUNS AT A GERMAN UNIT THE ECONOMY SAVED A BURST OF GROWTH FOR THE FINAL QUARTER OF NINETEEN NINETY THREE AS IT DID FOR THE LAST THREE MONTHS OF NINETEEN NINETY TWO A FLURRY OF CONSUMER SPENDING HOME BUILDING AND FACTORY PRODUCTION ALL HELPED BOOST ECONOMIC GROWTH DURING LAST YEAR'S OCTOBER DECEMBER PERIOD MANY ECONOMISTS SAY THE ECONOMY AS MEASURED BY GROSS DOMESTIC PRODUCT GREW AT AN ANNUAL RATE OF FOUR PERCENT TO SIX PERCENT DURING THE FOURTH QUARTER UP FROM TWO POINT NINE PERCENT IN THE THIRD QUARTER THE GROWTH SURGE BRINGS BACK MEMORIES OF NINETEEN NINETY TWO WHEN G. D. P. ACCELERATED TO A FIVE POINT SEVEN PERCENT RATE IN THE FOURTH QUARTER BUT UNLIKE A YEAR EARLIER WHEN THE BURST OF GROWTH QUICKLY DROPPED TO A ZERO POINT EIGHT PERCENT RATE IN THE FOLLOWING QUARTER ECONOMIC STRENGTH IS SEEN AS BEING MORE FIRMLY ENTRENCHED GORDON RICHARDS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS SAID HE EXPECTS A COMMERCE DEPARTMENT REPORT THIS WEEK WILL SHOW THAT G. D. P. GREW AT A FOUR POINT THREE PERCENT RATE IN THE FOURTH QUARTER HE FORECASTS THREE POINT TWO PERCENT GROWTH IN THE FIRST QUARTER QUOTE GROWTH IN THE FIRST QUARTER WILL DROP OFF A LITTLE BUT NOT LIKE THE MAGNITUDE OF LAST YEAR QUOTE MR. RICHARDS SAID HE SAID G. D. P. SHOULD GROW THREE PERCENT IN NINETEEN NINETY FOUR COMPARED WITH TWO POINT EIGHT PERCENT IN NINETEEN NINETY THREE AS DOMESTIC CONSUMPTION SLOWS EXPORTS SHOULD RISE HELPING TO TAKE UP THE SLACK HE SAID MICHAEL C. LANG FORTY EIGHT YEARS OLD WAS NAMED SENIOR VICE PRESIDENT BUSINESS AFFAIRS BROADCAST OPERATIONS AND ENGINEERING FOR THE A. B. C. TELEVISION NETWORK GROUP OF THIS BROADCASTER A NEWLY CREATED POSITION MR. LANG MOST RECENTLY WAS VICE PRESIDENT OF THE DIVISION ALSO WILLIAM J. WILKINSON FORTY FOUR WAS NAMED VICE PRESIDENT AND EXECUTIVE ASSISTANT TO THE CHAIRMAN AT THE PARENT COMPANY MR. WILKINSON WILL CONTINUE TO SUPERVISE HUMAN RESOURCES INTERNATIONAL BUSINESS MACHINES CORPORATION IS EXPECTED TO REPORT ITS FIRST QUARTERLY PROFIT IN MORE THAN A YEAR TOMORROW BUT SOME ANALYSTS SAID IT IS TOO SOON TO CONCLUDE THAT A TURNAROUND IS AT HAND FOR THE AILING COMPUTER CONCERN INSTEAD MASSIVE COST CUTTING AND SEASONALLY STRONG FOURTH QUARTER SALES ARE LIKELY TO BOOST PROFIT AS HIGH AS EIGHTY CENTS A SHARE OR FOUR HUNDRED EIGHTY MILLION DOLLARS ON REVENUE OF TWENTY BILLION DOLLARS THE HIGHEST ESTIMATES FOR THE QUARTER WOULD LEAVE I. B. M. WITH A SMALL OPERATING PROFIT OF ABOUT TWO MILLION DOLLARS FOR THE YEAR BUT A NET LOSS OF ABOUT EIGHT BILLION DOLLARS AFTER RESTRUCTURING CHARGES FOR THE NINETEEN NINETY TWO FOURTH QUARTER I. B. M. REPORTED AN OPERATING LOSS OF EIGHT CENTS A SHARE RESTRUCTURING CHARGES DRAGGED THE BOTTOM LINE LOSS TO NINE DOLLARS AND FIFTY SEVEN CENTS A SHARE QUOTE READING A BIG FOURTH QUARTER AS A SIGN OF RECOVERY WOULD BE A DANGEROUS THING TO DO QUOTE SAID STEPHEN SMITH AN ANALYST FOR PAINEWEBBER TRADITIONALLY I. B. M. DOES THIRTY PERCENT OF ITS BUSINESS IN THE LAST QUARTER OF THE YEAR DEAN WITTER'S JAY STEVENS EXPECTS I. B. M. TO REPORT FOURTH QUARTER PROFIT OF SIXTY CENTS OR THREE HUNDRED FORTY SIX MILLION DOLLARS AND AN OPERATING LOSS FOR THE YEAR OF FIFTY SEVEN MILLION DOLLARS AFTER CHARGES THE NET LOSS WOULD BE ABOUT EIGHT BILLION DOLLARS ACCORDING TO HIS ESTIMATES BUT MR. STEVENS SAYS HE'S ENCOURAGED BY RECENT ACTIONS AT I. B. M. WE THINK THIS IS THE BEGINNING OF A LONG TERM TURN FOR THE COMPANY HE SAID EXPENSES HAVE COME DOWN RAPIDLY AND TRANSITIONS ARE UNDER WAY IN THE PROFIT LINE HE CITES I. B. M.'S PLAN THIS YEAR TO LAUNCH ITS NEW POWERPC PRODUCTS WHICH ARE BASED ON A POWERFUL NEW CHIP TRANSITIONS UNDER WAY TO REDUCE MANUFACTURING COSTS OF MAINFRAMES AND I. B. M.'S INDICATIONS THAT IT IS GOING TO MAKE A BIG PUSH INTO CONSUMER MARKETS BUT EVEN MR. STEVENS CONCEDED THERE'S A WAIT AND SEE PERIOD AHEAD FOR I. B. M. WHILE I. B. M. HAS DONE AN IMPRESSIVE JOB OF COST CUTTING INCLUDING TAKING A MASSIVE SECOND QUARTER CHARGE OF EIGHT POINT NINE BILLION DOLLARS TO REDUCE I. B. M.'S ANNUAL EXPENSES BY FIVE POINT TWO FIVE BILLION DOLLARS IT STILL FACES THE LONG TERM PROBLEM OF GROWING REVENUE IN AN INDUSTRY THAT'S IN A WORLD WIDE RECESSION AFTER EXPLOSIVE EXPANSION IN THE NINETEEN EIGHTIES THE TECHNOLOGY INDUSTRY IS DOWN TO SINGLE DIGIT GROWTH PARTLY BECAUSE OF ECONOMIC DIFFICULTIES IN JAPAN AND EUROPE DIGITAL EQUIPMENT CORPORATION'S SURPRISING LOSS REPORTED LAST WEEK FOR THE SECOND FISCAL QUARTER WAS A BAD SIGN SHOWING HOW DIFFICULT RECOVERIES CAN BE I. B. M.'S STOCK SLID ON DIGITAL'S NEWS AFTER ENJOYING A BRIEF RALLY THAT TOOK IT TO SIXTY DOLLARS EARLIER THIS YEAR FRIDAY IT CLOSED UNCHANGED AT FIFTY FIVE DOLLARS AND TWENTY FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING I. B. M.'S CHALLENGE IS TO FIND HIGH MARGIN ITEMS TO MAKE UP FOR DECLINING PROFITS IN THE MAINFRAME DIVISION ANALYSTS ARE EXPECTING A FURTHER DROP IN I. B. M.'S PROFIT MARGINS IN THE FOURTH QUARTER TO THIRTY SIX PERCENT FROM THIRTY EIGHT PERCENT IN THE THIRD QUARTER JUST TWO YEARS AGO THE COMPANY HAD PROFIT MARGINS OF FIFTY FIVE PERCENT SO FAR I. B. M. IS FARING BETTER ON THE COST SIDE OF THE LEDGER BUT LONG TERM YOU CAN'T RESTORE I. B. M.'S LUSTER BY GOING THE COST CUTTING ROUTE ALONE SAYS ULRIC WEIL A FORMER I. B. M. EMPLOYEE WHO'S NOW A WASHINGTON BASED CONSULTANT CHINA AGREED TO GRANT EXPANDED OPERATING RIGHTS TO FOREIGN BANKS AND THE U. S. SAID IT WILL HELP CHINA IMPROVE ITS TOOLS FOR MANAGING ITS MASSIVE ECONOMY TREASURY SECRETARY LLOYD BENTSEN AND FINANCE MINISTER LIU ZHONGLI SAID THE ACCORDS REFLECT A LARGER COMMITMENT BY THE TWO COUNTRIES TO IMPROVE THEIR TRADE AND INVESTMENT TIES THEY SAID ONE FOCUS OF CONTINUING DISCUSSIONS BY THE SINO AMERICAN JOINT ECONOMIC COMMITTEE WILL BE FINDING WAYS TO KEEP CHINA'S ECONOMY GROWING AT A STABLE PREDICTABLE RATE A GOAL THAT'S IMPORTANT FOR REGIONAL AND WORLD TRADE AS WELL AS FOR CHINA ITSELF THROUGHOUT THREE DAYS OF MEETINGS WITH MR. BENTSEN HERE CHINESE OFFICIALS SHOWED A STRONG APPETITE FOR LEARNING HOW TO MAKE MONETARY AND FISCAL POLICY MORE EFFECTIVE IN MAINTAINING CONSISTENT NONINFLATIONARY GROWTH THE CHINESE ECONOMY HAS GROWN AT AN ANNUAL RATE OF NINE POINT FIVE PERCENT IN THE LAST DECADE BUT YEAR TO YEAR ACTIVITY HAS BEEN VOLATILE SWINGING FROM TEN PERCENT GROWTH IN NINETEEN EIGHTY EIGHT TO FOUR POINT FIVE PERCENT IN NINETEEN NINETY AND AS MUCH AS THIRTEEN PERCENT LAST YEAR THESE WIDE SWINGS HAVE COMPLICATED PLANNING EFFORTS IN ADDITION OFFICIALS WORRY THAT THE CHINESE ECONOMY IS OVERHEATING INFLATION IS RUNNING AT AN ANNUAL RATE OF TWENTY PERCENT IN THE CITIES AND THIRTEEN PERCENT IN RURAL AREAS BOTH MERCHANTS AND CONSUMERS ARE COMPLAINING ABOUT RISING PRICES BUT THE GOVERNMENT WORRIED ABOUT JACKING UP INTEREST RATES HAS FOUND IT DIFFICULT TO REIN IN CREDIT ENOUGH TO CURB INFLATION U. S. AND WORLD BANK OFFICIALS WORRY THAT INFLATION COULD WEAKEN CHINA'S COMMITMENT TO ECONOMIC REFORMS DESIGNED TO PRODUCE A MORE MARKET ORIENTED ECONOMY FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN PLANS TO VISIT CHINA TO DISCUSS A WIDE RANGE OF MONETARY POLICY ISSUES AND THE FED IS PREPARED TO PROVIDE TECHNICAL ASSISTANCE IN ADDITION INTERNAL REVENUE SERVICE OFFICIALS WILL ADVISE CHINA ON THE DEVELOPMENT OF A MORE EFFICIENT TAX COLLECTION SYSTEM BECAUSE OF THE WAY THAT CHINA'S TAX REVENUES FLOW UP FROM THE PROVINCES REVENUES RECEIVED BY THE CENTRAL GOVERNMENT HAVE FALLEN IN THE PAST FIFTEEN YEARS TO ABOUT EIGHTEEN PERCENT OF GROSS DOMESTIC PRODUCT FROM THIRTY SIX PERCENT AS A RESULT THE BEIJING GOVERNMENT LACKS THE REVENUES IT NEEDS IN THE BANKING AREA CHINA SAID IT WILL ALLOW FOREIGN BANKS TO EXPAND THEIR BRANCH NETWORKS BRANCHING ALREADY IS PERMITTED IN THIRTEEN CITIES AND ECONOMIC ZONES OUTSIDE THESE ZONES BANKS CAN OPEN REPRESENTATIVE OFFICES AS LONG AS THEY DON'T ENGAGE IN PROFIT MAKING ACTIVITIES CHINA WILL ADD CITIES WHERE FOREIGN BANKS CAN OPEN BRANCHES THE SCOPE AND TIMING OF THE EXPANSION STILL MUST BE WORKED OUT CHINA ALSO AGREED TO EXPERIMENT WITH ALLOWING BANKS TO TRANSACT BUSINESS IN RENMINBI THE CHINESE CURRENCY THIS COULD ALLOW BANKS TO DEVELOP RETAIL BANKING FRANCHISES THAT LEND TO SMALL BUSINESSES AND MAKE AUTO AND MORTGAGE LOANS IN ANOTHER EFFORT TO HELP BEIJING MODERNIZE ITS ECONOMY THE U. S. SECURITIES AND EXCHANGE COMMISSION IS PREPARING TO PROVIDE ADVICE ON HOW TO REGULATE SECURITIES MARKETS U. S. X. CORPORATION AIDED BY STRONG DEMAND FOR STEEL AND BY SPECIAL GAINS EARNED THIRTY SEVEN MILLION DOLLARS COMPARED WITH A YEAR AGO FOURTH QUARTER LOSS OF THREE HUNDRED FORTY THREE MILLION DOLLARS THE STEEL OIL AND NATURAL GAS CONCERN SAID SALES ROSE ALMOST ONE PERCENT TO FOUR POINT SIX BILLION DOLLARS FROM FOUR POINT FIVE EIGHT BILLION DOLLARS U. S. X.'S IMPROVEMENT WAS LED BY ITS U. S. STEEL GROUP WHICH TOOK ADVANTAGE OF HIGHER DEMAND AND PRICES IT EARNED ONE HUNDRED TWENTY FOUR MILLION DOLLARS OR ONE DOLLAR AND SIXTY SEVEN CENTS A SHARE COMPARED WITH A LOSS OF TWO HUNDRED TWENTY FIVE MILLION DOLLARS OR THREE DOLLARS AND EIGHTY CENTS A SHARE IN THE YEAR EARLIER QUARTER THE LATEST PERIOD WAS BOLSTERED BY GAINS OF ABOUT EIGHTY THREE MILLION DOLLARS ON AN AFTER TAX BASIS THEY INCLUDED THE REVERSAL OF LITIGATION CHARGES AND INCOME FROM A SUBORDINATED NOTE FROM THE NINETEEN EIGHTY EIGHT SALE OF TRANSTAR INCORPORATED THE YEAR AGO PERIOD INCLUDED AN AFTER TAX CHARGE OF ONE HUNDRED SIXTY SIX MILLION DOLLARS FOR ITEMS INCLUDING LEGAL AND ENVIRONMENTAL ACCRUALS SALES JUMPED TWENTY EIGHT PERCENT TO ONE POINT FIVE FIVE BILLION DOLLARS FROM ONE POINT TWO ONE BILLION DOLLARS SHIPMENTS CLIMBED SEVENTEEN PERCENT TO TWO POINT SEVEN MILLION NET TONS FROM TWO POINT THREE MILLION NET TONS AND U. S. STEEL'S MILLS RAN AT NINETY EIGHT PERCENT OF CAPACITY QUOTE IT'S A MANAGEMENT FEAT TO RUN AT NINETY EIGHT PERCENT CAPACITY QUOTE SAID JOHN C. TUMAZOS AN ANALYST WITH DONALDSON LUFKIN AND JENRETTE A NINETY EIGHT PERCENT OPERATING RATE PERMITS THEM TO MAKE MORE STEEL SHIP MORE STEEL HAVE LOWER COSTS AND HIGHER REVENUE BUT U. S. STEEL ALSO SHIPPED MORE NONPRIME OR LOWER QUALITY STEEL IN THE PERIOD PRODUCING A LOWER OPERATING PROFIT PER TON THAN EXPECTED SAID ANTHONY B. RIZZUTO AN ANALYST WITH BEAR STEARNS AND COMPANY HE HAD PROJECTED A TWENTY FIVE DOLLAR PROFIT PER TON BUT THE FIGURE CAME IN AT EIGHTEEN DOLLARS THOMAS M. VAN LEEUWEN AN ANALYST WITH C. S. FIRST BOSTON SAID THE COMPANY WAS CLEARING OUT INVENTORY STILL U. S. STEEL'S EARNINGS ARE AN INDICATION THAT THERE'S NO QUESTION THAT THE STEEL INDUSTRY HAS TURNED THE CORNER AND THAT THE OUTLOOK CONTINUES TO BE BRIGHT SAID MR. VAN LEEUWEN IN A STATEMENT U. S. X. CHAIRMAN CHARLES A. CORRY CONCURRED SAYING FIRST QUARTER ORDERS ARE AT HIGH LEVELS FLAT ROLLED MARKETS KEY TO U. S. STEEL'S COMMERCIAL STRATEGIES REMAIN STRONG MOST NOTABLY AUTOMOTIVE HE SAID CONSTRUCTION APPLIANCE AND TIN MILL MARKETS ALSO REMAIN STRONG WHILE U. S. STEEL ENJOYED HIGHER PRICES U. S. X.'S MARATHON AND DELHI UNITS WERE HAMPERED BY LOW PRICES FOR OIL AND NATURAL GAS LIQUIDS RESPECTIVELY THE LOW PRICES FORCED MARATHON TO TAKE AN INVENTORY MARKET VALUATION RESERVE OF ONE HUNDRED EIGHTY SEVEN MILLION DOLLARS ON A PRETAX BASIS IN THE PERIOD LARGER THAN THE NINETY EIGHT MILLION DOLLAR RESERVE IN THE YEAR EARLIER PERIOD INCLUDING OTHER CHARGES AND GAINS WHICH IN TOTAL CUT NET INCOME BY ONE HUNDRED SEVENTEEN MILLION DOLLARS MARATHON RECORDED A NET LOSS OF EIGHTY EIGHT MILLION DOLLARS OR THIRTY ONE CENTS A SHARE COMPARED WITH A LOSS OF ONE HUNDRED TWENTY MILLION DOLLARS OR FORTY TWO CENTS A SHARE IN NINETEEN NINETY TWO'S FOURTH QUARTER THE YEAR EARLIER NET INCLUDED THE INVENTORY VALUATION RESERVE AND OTHER CHARGES AND GAINS TOTALING AN AFTER TAX NET CHARGE OF SIXTY TWO MILLION DOLLARS SALES FELL NEARLY TEN PERCENT TO TWO POINT NINE TWO BILLION DOLLARS FROM THREE POINT TWO FOUR BILLION DOLLARS QUOTE THE DROP IN OIL PRICES CLEARLY TOOK ITS TOLL BUT IT WAS MADE UP LARGELY BY BETTER REFINING MARGINS QUOTE SAID ROBIN SHOEMAKER AN ANALYST WITH LEHMAN BROTHERS THE STORY OF NINETEEN NINETY THREE WAS A HUGE IMPROVEMENT IN THE REFINING AND MARKETING BUSINESS INDEED MARATHON SAID OPERATING INCOME FROM REFINING MARKETING AND TRANSPORTATION REACHED ONE HUNDRED ELEVEN MILLION DOLLARS IN THE QUARTER UP SHARPLY FROM THREE MILLION DOLLARS A YEAR AGO THE IMPROVEMENT WAS SPURRED BY HIGHER REFINED PRODUCT MARGINS REFLECTING LOWER CRUDE COSTS STRONGER RETAIL MARGINS AND DECREASED REFINERY MAINTENANCE COSTS THE COMPANY SAID MEANWHILE DELHI GROUP U. S. X.'S NATURAL GAS SUBSIDIARY EARNED TWO POINT ONE MILLION DOLLARS OR FIFTEEN CENTS A SHARE IN THE FOURTH QUARTER DOWN FROM THREE POINT ONE MILLION DOLLARS OR TWENTY TWO CENTS A SHARE A YEAR AGO SALES CLIMBED NEARLY FIVE PERCENT TO ONE HUNDRED FORTY THREE POINT FIVE MILLION DOLLARS FROM ONE HUNDRED THIRTY SIX POINT NINE MILLION DOLLARS DELHI'S RESULTS WERE HOBBLED BY LOWER AVERAGE PRICES AND VOLUMES FOR NATURAL GAS LIQUIDS SUCH AS PROPANE AND BUTANE AND A FALL IN NATURAL GAS TRANSPORTATION MARGINS AND VOLUMES ABOUT ONE HUNDRED FIFTEEN THOUSAND INVESTORS WHO BOUGHT PRUDENTIAL SECURITIES INCORPORATED ENERGY LIMITED PARTNERSHIPS COULD RECEIVE CHECKS AS EARLY AS APRIL FROM A NINETY POINT SEVEN MILLION DOLLAR SETTLEMENT WITH THE FIRM A FEDERAL JUDGE IN NEW ORLEANS ON FRIDAY APPROVED THE SETTLEMENT IN A CLASS ACTION SUIT THAT ACCUSED THE BIG BROKERAGE FIRM OF MISLEADING INVESTORS ON THE REWARDS AND PITFALLS OF ONE POINT FOUR FIVE BILLION DOLLARS IN THIRTY FIVE OIL AND GAS PARTNERSHIPS WHICH HAVE SLUMPED TO HALF THEIR VALUE BARRING AN APPEAL THE SETTLEMENT CAPS ONE OF THE MOST CLOSELY WATCHED COURT CASES INVOLVING SMALL INVESTORS ON WALL STREET THOUGH THE INVESTORS IN MANY CASES WON'T NEARLY RECEIVE ALL THEIR MONEY BACK AND THE JUDGE SUGGESTED THEY SHOULD HAVE GOTTEN MORE THEY FARED BETTER THAN THE FEW PENNIES ON THE DOLLAR RECEIVED BY PRUDENTIAL INVESTORS IN A NINETEEN NINETY ONE SETTLEMENT INVOLVING V. M. S. REALTY PARTNERS PARTNERSHIPS MORE IMPORTANT FOR THE INVESTORS THE SETTLEMENT PROMISES TO END THE THREE YEAR OLD CASE AND FINALLY RETURN SOME OF THEIR ORIGINAL OUTLAY ON THE PARTNERSHIPS FEDERAL JUDGE MARCEL LIVAUDAIS JUNIOR WHO APPROVED THE ACCORD SAID HE HAD RECEIVED REAMS OF LETTERS FROM ELDERLY INVESTORS WHO HAD IMPLORED HIM TO SIGN OFF ON THE DEAL QUOTE THEY SAY I DON'T WANT TO WAIT ANOTHER FIVE YEARS I WANT MY MONEY NOW QUOTE THE JUDGE SAID MY CONCERN IS POSSIBLY FOR THOSE WHO WANT TO OPT IN ON THE SURFACE THE ENERGY PARTNERSHIP SETTLEMENT COMES TO JUST EIGHT CENTS ON THE DOLLAR HOW MUCH INVESTORS RECEIVE WILL VARY WIDELY FROM PARTNERSHIP TO PARTNERSHIP DEPENDING ON PERFORMANCE MORE BROADLY HOWEVER THE SETTLEMENT BRINGS TO ONE POINT TWO FOUR BILLION DOLLARS OR AN AVERAGE OF EIGHTY FIVE CENTS ON THE DOLLAR THE AMOUNT INVESTORS WILL END UP GETTING FOR THEIR ORIGINAL ONE POINT FOUR FIVE BILLION DOLLAR OUTLAY THAT'S BECAUSE INVESTORS HAVE ALREADY RECEIVED SIX HUNDRED FIFTY FIVE MILLION DOLLARS IN DISTRIBUTIONS PLUS FOUR HUNDRED NINETY ONE MILLION DOLLARS FROM THE SALE OF THE PARTNERSHIPS TO PARKER AND PARSLEY PETROLEUM COMPANY A MIDLAND TEXAS OIL AND GAS COMPANY THE SETTLEMENT HAS TO BE VIEWED IN THE PERSPECTIVE OF THE SALE WE WOULD NEVER HAVE ENTERTAINED THE SETTLEMENT BUT FOR THE DEAL IN JUNE WITH PARKER AND PARSLEY SAID GEORGE RIESS A NEW ORLEANS LAWYER FOR ABOUT ONE HUNDRED FIFTY PLAINTIFFS WHO ENDORSED THE ACCORD THAT MAKES IT VERY FAIR AND ADEQUATE AND REASONABLE STUART GOLDBERG THE SETTLEMENT'S MAJOR OBJECTOR HAD TOLD THE JUDGE THAT INVESTORS OUGHT TO RECEIVE SEVEN HUNDRED EIGHTY MILLION DOLLARS DURING A THREE DAY HEARING MR. GOLDBERG PRESENTED EVIDENCE IN A BID TO PROVE THAT PRUDENTIAL HAD DECEIVED INVESTORS BY AMONG OTHER THINGS BORROWING TO INFLATE DISTRIBUTIONS ON FRIDAY WILLIAM JORDAN A FLORIDA STATE UNIVERSITY ACCOUNTING PROFESSOR TESTIFIED THAT PRUDENTIAL MISLED INVESTORS BY FAILING TO DISCLOSE IN PROSPECTUSES CERTAIN BORROWINGS WHICH WERE USED TO HIDE THE PARTNERSHIPS' POOR PERFORMANCE MR. GOLDBERG COULDN'T BE REACHED TO COMMENT ANY APPEAL MUST BE FILED WITHIN THIRTY DAYS JUDGE LIVAUDAIS WHO SITS ON THE U. S. DISTRICT COURT FOR THE EASTERN DISTRICT OF LOUISIANA FOR HIS PART SAID HE HAD BOUGHT INVESTMENTS OVER TIME HIMSELF AND NEVER BOTHERED TO READ A PROSPECTUS NO ONE'S EVER TOLD ME THEY WERE MISLED BY THE PROSPECTUS THE JUDGE SAID I HAVE NO KNOWLEDGE OF ANYONE EVER RELYING ON ONE A PRINCIPAL CLAIM OF PLAINTIFFS WAS THAT THEY WERE MISLED BY THE PRUDENTIAL SALES FORCE THROUGHOUT THE HEARING PRUDENTIAL INSISTED THAT THE LOSSES STEMMED SOLELY FROM AN UNEXPECTED PLUNGE IN OIL AND GAS PRICES IN A STATEMENT HARDWICK SIMMONS PRUDENTIAL SECURITIES' PRESIDENT AND CHIEF EXECUTIVE SAID QUOTE WE ARE VERY PLEASED TO HAVE ACHIEVED ANOTHER IMPORTANT STEP IN PUTTING THE PARTNERSHIP PROBLEMS OF THE EIGHTIES BEHIND US QUOTE JUDGE LIVAUDAIS SURPRISED OBSERVERS BY RULING FROM THE BENCH FRIDAY IMMEDIATELY FOLLOWING THE END OF TESTIMONY AND FINAL ARGUMENTS HE HAD BEEN EXPECTED TO REQUEST BRIEFS AND MAKE A RULING NEXT WEEK DESPITE THE EVIDENCE BROUGHT BY MR. GOLDBERG SECURITIES LAWYERS WIDELY EXPECTED JUDGE LIVAUDAIS TO AGREE TO THE ACCORD THANKS PARTLY TO THE ENDORSEMENT OF SEVERAL PLAINTIFFS' LAWYERS WHO LAST YEAR OBJECTED TO AN EARLIER SETTLEMENT OFFER BY PRUDENTIAL THERE WAS INCENTIVE FOR PLAINTIFF LAWYERS TO SETTLE OF COURSE THEY STAND TO RECEIVE AS MUCH AS TWENTY SEVEN MILLION DOLLARS IN LEGAL FEES THIS MEANS INVESTORS TECHNICALLY END UP WITH A TOTAL OF ROUGHLY SIXTY FIVE MILLION DOLLARS FROM THE ACCORD WHICH WILL BE DOLED OUT BY APRIL OR MAY PLAINTIFFS' LAWYERS SAY LETTERS CONFIRMING INVESTORS' HOLDINGS ARE EXPECTED TO BE MAILED WITHIN THREE WEEKS IF THERE'S NO APPEAL IN ITS EARLIER PROPOSAL PRUDENTIAL OFFERED TO PAY INVESTORS THIRTY SEVEN MILLION DOLLARS IN CASH AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM IN FEBRUARY JUDGE LIVAUDAIS SAID HE HAD SERIOUS RESERVATIONS ABOUT THE ORIGINAL PRUDENTIAL OFFER AND SAID MORE DATA WERE NECESSARY BEFORE HE COULD RULE ON IT IN APRIL PRUDENTIAL SAID IT WOULD WITHDRAW THE OFFER TO FIRST ARRANGE A SALE OF THE PARTNERSHIP ASSETS AS PART OF THE CURRENT ACCORD PRUDENTIAL AGREED TO PAY ONE HUNDRED TWENTY MILLION DOLLARS TO INVESTORS BUT THE SETTLEMENT AMOUNT EFFECTIVELY WAS KNOCKED DOWN TO NINETY POINT SEVEN MILLION DOLLARS BECAUSE NEARLY SIXTEEN THOUSAND INVESTORS DECIDED TO EXCLUDE THEMSELVES FROM THE DEAL THOSE INVESTORS WHO DECIDED TO OPT OUT NOW CAN TRY TO SNATCH A SHARE OF AN OPEN ENDED REPARATIONS FUND SET UP BY THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT AS PART OF AN OCTOBER SETTLEMENT WITH FEDERAL AND STATE REGULATORS IF INVESTORS DON'T LIKE THE SETTLEMENT OFFERED FROM THE REPARATIONS FUND THEY CAN STILL FILE A PRIVATE ARBITRATION OR LEGAL CLAIM BUT A MAJOR ADVANTAGE FOR INVESTORS OF PRUDENTIAL'S ACCORD WITH REGULATORS IS THAT IT WAIVES THE STATUTE OF LIMITATIONS FOR BRINGING A CLAIM A MAJOR HURDLE IN COURT OR ARBITRATION CASES FOR PRUDENTIAL THE NINETY MILLION DOLLAR SETTLEMENT IS APPLIED TOWARD THE REPARATIONS FUND WHICH WAS SET BY REGULATORS AS BEING AT LEAST THREE HUNDRED THIRTY MILLION DOLLARS INTERNATIONAL GAMING MANAGEMENT INCORPORATED SAID IT AGREED TO ACQUIRE THE REMAINING FIFTY PERCENT STAKE IN SPLASH CASINO FROM CASINO RIVER VESSELS INCORPORATED MIDAMERICA INVESTMENTS INCORPORATED AND CASINO CONSULTANTS INCORPORATED IN A TRANSACTION VALUED AT FIFTY EIGHT MILLION DOLLARS THE MINNEAPOLIS COMPANY WHICH SELLS AND LEASES GAMING MACHINES PREVIOUSLY ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE AN INITIAL FIFTY PERCENT STAKE IN SPLASH CASINO INTERNATIONAL GAMING SAID THE TRANSACTION IS SUBJECT TO A NUMBER OF CONDITIONS INCLUDING OBTAINING NECESSARY FINANCING AND THE APPROVAL OF THE MISSISSIPPI GAMING COMMISSION THE SPLASH CASINO IS AT THE ENTRANCE TO MHOON LANDING IN TUNICA COUNTY MISSISSIPPI THIRTY FIVE MILES SOUTH OF MEMPHIS TENNESSEE IT HAS SIX HUNDRED THIRTY FIVE SLOT MACHINES AND THIRTY SIX GAMBLING TABLES FOR ITS FIRST YEAR OF OPERATION ENDED OCTOBER NINETEENTH NINETEEN NINETY THREE THE CASINO HAD ONE HUNDRED FIFTY MILLION DOLLARS IN REVENUE GENERAL INSTRUMENT CORPORATION SHARES DROPPED TWO DOLLARS AND FIFTY CENTS ON HEAVY TRADING FOLLOWING REPORTS THAT A MAJOR ORDER FOR ITS CABLE CONVERTERS BY TELE COMMUNICATIONS INCORPORATED HAS BEEN DELAYED IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING GENERAL INSTRUMENT SHARES FELL FOUR POINT TWO PERCENT TO FIFTY SEVEN POINT THREE SEVEN FIVE DOLLARS ON VOLUME OF TWO POINT THREE MILLION SHARES ALMOST FIVE TIMES AVERAGE VOLUME THE PLUNGE FOLLOWED A REPORT IN THIS NEWSPAPER THAT T. C. I. WHICH HAD PLANNED TO DEPLOY THE NEW BOXES IN EARLY NINETEEN NINETY FOUR WOULD WAIT UNTIL LATE NINETEEN NINETY FOUR OR EARLY NINETEEN NINETY FIVE TO ROLL THEM OUT BECAUSE TECHNICAL STANDARDS HAD NOT BEEN FINALIZED BY THE MOVING PICTURE EXPERTS GROUP THE NEW CONVERTER BOXES INCORPORATE A NEW TECHNOLOGY KNOWN AS DIGITAL COMPRESSION WHICH VASTLY INCREASES CHANNEL CAPACITY AND ARE A CRITICAL LINK TO PROVIDING SUBSCRIBERS WITH MOVIES ON DEMAND AND OTHER INTERACTIVE SERVICES COMPANY OFFICIALS SAID THE DELAY WASN'T NEW AND THAT BOTH GENERAL INSTRUMENT AND T. C. I. HAVE BEEN OPERATING UNDER THE REVISED SCHEDULE FOR QUOTE MANY MONTHS QUOTE THEY ADDED THAT ANALYSTS FOLLOWING THE COMPANY WERE TOLD OF THE NEW DELIVERY SCHEDULE IN A CONFERENCE CALL IN OCTOBER HOWEVER OFFICIALS DIDN'T MENTION THE PREVIOUS ANNOUNCEMENT WHEN CONTACTED LAST WEEK AND NEITHER COMPANY MADE NEWS OF THE DELAY PUBLIC A SPOKESMAN FOR T. C. I. SAID WE ANTICIPATE MAKING UP THE DELAY WHEN WE DEPLOY THESE BOXES LATER THIS YEAR IN NINETEEN NINETY FIVE AND IN NINETEEN NINETY SIX WE DON'T THINK THIS IS A SIGNIFICANT SETBACK ELECTRONIC DATA SYSTEMS CORPORATION ENTERING THE GAMBLING BUSINESS FOR THE FIRST TIME AGREED TO ACQUIRE A STAKE IN VIDEO LOTTERY TECHNOLOGIES INCORPORATED FOR SIXTY SEVEN POINT SIX MILLION DOLLARS AS PART OF ITS AGREEMENT WITH VIDEO LOTTERY DALLAS BASED E. D. S. IS TO MANAGE THE COMPUTER SYSTEMS THAT THE BOZEMAN MONTANA COMPANY SUPPLIES TO STATE LOTTERIES ABOUT SIX HUNDRED VIDEO LOTTERY WORKERS WILL BECOME E. D. S. EMPLOYEES THE COMPUTER SERVICES CONCERN A UNIT OF GENERAL MOTORS CORPORATION WILL ALSO COLLABORATE IN VIDEO LOTTERY'S DEVELOPMENT OF LOTTERY COMPUTER SYSTEMS THE INVESTMENT BY E. D. S. AMOUNTING TO ABOUT A TWENTY PERCENT STAKE IN VIDEO LOTTERY WILL CONSIST OF CONVERTIBLE PREFERRED AND COMMON STOCK FOR WHICH E. D. S. AGREED TO PAY TWENTY SEVEN DOLLARS AND FIFTY CENTS A SHARE IN NASDAQ STOCK MARKET TRADING FRIDAY VIDEO LOTTERY SHARES JUMPED ONE DOLLAR AND FIFTY CENTS OR SEVEN POINT SIX PERCENT TO TWENTY ONE DOLLARS AND TWENTY FIVE CENTS G. M. SHARES LINKED TO E. D. S. ROSE SEVENTY FIVE CENTS TO TWENTY NINE DOLLARS AND TWENTY FIVE CENTS E. D. S.'S MOVE UNUSUAL FOR A COMPANY WHOSE CUSTOMERS COME LARGELY FROM THE RANKS OF BIG CORPORATIONS COULD LEND STABILITY TO VIDEO LOTTERY IN OCTOBER NINETEEN NINETY TWO LARRY LIPPON RESIGNED AS VIDEO LOTTERY'S CHAIRMAN AND CHIEF EXECUTIVE BECAUSE OF AN INQUIRY THAT LINKED HIM TO TWO CRIMINALS THE PROCEEDS FROM E. D. S.'S INVESTMENT WILL ALLOW VIDEO LOTTERY TO REACQUIRE THROUGH AN INVESTMENT GROUP ACTING AS AN INTERMEDIARY THE BULK OF MR. LIPPON'S REMAINING STAKE IN THE COMPANY AFTER RESIGNING MR. LIPPON HAD GIVEN THE INVESTMENT GROUP AN OPTION TO BUY THE SHARES C. B. S. INCORPORATED SPORTS COMMENTATOR JOHN MADDEN WILL JOIN NEWS CORPORATION'S FOX NETWORK GIVING THE PREVIOUSLY SPORTSLESS FOX INSTANT CREDIBILITY WHEN IT TAKES OVER NATIONAL FOOTBALL LEAGUE BROADCASTS IN THE FALL MR. MADDEN'S SALARY IS THIRTY MILLION DOLLARS OVER FOUR YEARS ACCORDING TO AN EXECUTIVE FAMILIAR WITH THE SITUATION IN ADDITION FOX IS EXPECTED TO ANNOUNCE TODAY THAT KARD T. V. IN MONROE LOUISIANA WILL BECOME A FOX AFFILIATE ON APRIL SEVENTEENTH THE STATION IS CURRENTLY AN AFFILIATE OF CAPITAL CITIES SLASH A. B. C. INCORPORATED'S A. B. C. NETWORK FOX SAID WHEN IT ACQUIRED THE N. F. L. RIGHTS THAT IT HOPED TO USE THEM TO LURE AFFILIATES FOX LACKS AFFILIATES IN ABOUT FIFTY CITIES IN DECEMBER FOX OUTBID C. B. S. FOR THE N. F. L. PACKAGE PAYING ONE POINT FIVE EIGHT BILLION DOLLARS OVER FOUR YEARS FOR THE N. F. L.'S NATIONAL FOOTBALL CONFERENCE GAMES C. B. S. HAD BROADCAST PRO FOOTBALL FOR THIRTY EIGHT YEARS ANOTHER C. B. S. FOOTBALL COMMENTATOR PAT SUMMERALL WILL JOIN MR. MADDEN AT FOX FOX AND C. B. S. DECLINED TO COMMENT MICHAEL R. BLOOMBERG AND WILLIAM W. PRIEST JUNIOR WERE ELECTED DIRECTORS OF THIS INSURANCE HOLDING COMPANY FILLING VACANCIES ON THE SEVEN MEMBER BOARD MR. BLOOMBERG FIFTY ONE YEARS OLD IS PRESIDENT OF BLOOMBERG LIMITED PARTNERSHIP A PROVIDER OF FINANCIAL MARKET INFORMATION AND BUSINESS NEWS MR. PRIEST FIFTY TWO IS CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR OF BEA ASSOCIATES AN INVESTMENT COUNSELING FIRM PLAYERS INTERNATIONAL INCORPORATED SAID IT RECEIVED APPROVAL FROM THE CITY OF MARYLAND HEIGHTS MISSOURI TO DEVELOP A RIVERBOAT CASINO COMPLEX THE COMPANY ALSO SAID IT HAS APPLIED TO THE MISSOURI GAMING COMMISSION FOR A LICENSE TO OWN AND OPERATE A RIVERBOAT CASINO AND IT IS SEEKING OTHER APPROVALS FOR THE DEVELOPMENT SITE UPON COMPLETION THE PROPOSED FACILITY WILL BE THE THIRD RIVERBOAT CASINO DEVELOPED AND OPERATED BY THE COMPANY PLAYERS INTERNATIONAL IS A DEVELOPER AND OPERATOR OF RIVERBOAT CASINOS THAT OWNS AND OPERATES A FACILITY AT MERV GRIFFIN'S LANDING ON THE OHIO RIVER IN METROPOLIS ILLINOIS AND IN LAKE CHARLES AS MEMBERS OF CONGRESS RETURN TO WORK NEXT WEEK THEY'LL BE HEARING FROM SOME OLD FRIENDS THE GAG IS OFF FOR THE MANY EX LAWMAKERS WHO TURNED TO LOBBYING LAST YEAR THE GROUP THAT DEPARTED AFTER NINETEEN NINETY TWO WAS THE FIRST TO BE SUBJECT TO A ONE YEAR BAN ON LOBBYING THEIR FORMER COLLEAGUES A QUOTE COOLING OFF QUOTE PERIOD TO SQUELCH THE IMAGES OF POLITICIANS INSTANTLY CASHING IN ON THEIR NOT SO OLD CONTACTS AND OF CORPORATIONS BUYING ACCESS THE ONE YEAR BAN IS A VERY GOOD THING A VERY HEALTHY THING SAYS FORMER REPRESENTATIVE THOMAS DOWNEY A NEW YORK DEMOCRAT WHO CAME TO THE HOUSE IN THE POST WATERGATE REFORM CLASS OF NINETEEN SEVENTY FOUR AND WHO'S NOW SUBJECT TO THE NINETEEN EIGHTY NINE ETHICS LAW IT'S GOOD FOR THE PUBLIC TO THINK THERE'S NOT A REVOLVING DOOR BUT THERE IS A REVOLVING DOOR AND LONG BEFORE THE BAN EXPIRED THIS MONTH FOR THE EX MEMBERS WHO SERVED UNTIL NINETEEN NINETY THREE THE EVIDENCE WAS CLEAR THAT ITS SPINNING BETWEEN CONGRESS AND THE LOBBYING RANKS HAS HARDLY SLOWED LET ALONE STOPPED MORE THAN A QUARTER OF THE FOUR HUNDRED THIRTY FIVE MEMBER HOUSE LEFT AFTER NINETEEN NINETY TWO BECAUSE OF RETIREMENTS AND DEFEATS A FORTY FOUR YEAR HIGH AND ACCORDING TO CHECKS OF THEIR WHEREABOUTS ABOUT FOUR OUT OF TEN OPENED OFFICES OR JOINED MAJOR LAW FIRMS AND CORPORATIONS TO DO LOBBYING AND CONSULTING EVEN DURING THE COOLING OFF PERIOD EXMEMBERS AREN'T BARRED FROM DEVISING LEGISLATIVE STRATEGY FOR THEIR CLIENTS MANY OF WHOM HAVE BUSINESS BEFORE THE COMMITTEES THEY ONCE SAT ON MY ROLE HAS BEEN MORE ONE OF AN ADVISER TO CORPORATE CLIENTS SAYS EX REPRESENTATIVE ED JENKINS OF GEORGIA WHO WORKED WITH TEXTILE MAGNATE ROGER MILLIKEN TO OPPOSE THE NORTH AMERICAN FREE TRADE AGREEMENT BUT WITH THE DEADLINE BEHIND HIM I CERTAINLY INTEND TO BE MORE OF AN ADVOCATE BEFORE CONGRESS NOTHING IN THE LAW EVER PREVENTED THE EX MEMBERS FROM LOBBYING THE EXECUTIVE BRANCH SO MR. DOWNEY WHOSE CLIENTS AT THOMAS DOWNEY AND ASSOCIATES INCLUDE JOSEPH E. SEAGRAMS AND SONS INCORPORATED TIME WARNER INCORPORATED MERCK AND COMPANY AND METROPOLITAN LIFE INSURANCE COMPANY HAS BEEN FREE TO CALL ON HIS CLOSE FRIEND VICE PRESIDENT AL GORE AND SAYS HE DID SO TO INFLUENCE ADMINISTRATION POLICY EXPANDING THE EARNED INCOME TAX CREDIT FOR THE WORKING POOR MR. DOWNEY'S ONE TIME COLLEAGUE AT THE HOUSE WAYS AND MEANS COMMITTEE BERYL ANTHONY COULD CONTACT HIS FELLOW ARKANSAS DEMOCRATS IN THE WHITE HOUSE FOR CLIENTS AT WINSTON AND STRAWN AS HE DID LAST YEAR FOR DRUG MAKERS SEEKING TO SOFTEN THE BLOW TO A TAX CREDIT FOR THEIR OPERATIONS IN PUERTO RICO MOREOVER THE ONE YEAR GAG ON EX LAWMAKERS APPLIES ONLY TO CONTACTING MEMBERS OF CONGRESS ABOUT A CLIENT'S LEGISLATIVE ISSUES LAWMAKERS TURNED LOBBYISTS CAN CONTINUE TO MEET SOCIALLY WITH THEIR FORMER COLLEAGUES IN CONGRESS AND HAVE IN THE PAST YEAR MR. DOWNEY AND OTHERS KEPT UP THEIR REGULAR BASKETBALL GAMES IN THE MEMBERS ONLY AND EX MEMBERS ONLY HOUSE GYM MR. JENKINS ANOTHER WAYS AND MEANS VETERAN WHO'S NOW A PARTNER WITH ACE LOBBYIST JOHN WINBURN COULD CONTINUE TO PLAY POKER WITH HIS ONE TIME COLLEAGUES FORMER REPRESENTATIVE GUY VANDER JAGT A MICHIGAN REPUBLICAN NOW AT BAKER AND HOSTETLER'S WASHINGTON OFFICE STILL DINED ON TUESDAYS WITH OTHER HOUSE REPUBLICANS IN THE LONGTIME S. O. S. CLUB BREAKFASTED WEDNESDAYS WITH ANOTHER HOUSE G. O. P. GROUP ALONG WITH CABINET OR MEDIA TYPES AND ATTENDED BIPARTISAN PRAYER BREAKFASTS ON THURSDAYS AT THE CAPITOL AND MANY EX LEGISLATORS REGULARLY TURNED UP IN NINETEEN NINETY THREE AT LAWMAKERS' FUNDRAISERS AND IN THE COMPANY OF LAWMAKERS AT CAPITAL RESTAURANTS OR OUT OF TOWN POLITICAL RETREATS JUST ONE FORMER LEGISLATOR IS KNOWN TO HAVE RUN INTO TROUBLE WITH THE LAW THIS MONTH THE FEDERAL BUREAU OF INVESTIGATION ACKNOWLEDGED THAT IT IS INVESTIGATING WHETHER EX REPRESENTATIVE ROBIN TALLON A SOUTH CAROLINA DEMOCRAT VIOLATED THE BAN LAST MARCH WHEN HE VISITED HIS SUCCESSOR DEMOCRATIC REPRESENTATIVE JAMES CLYBURN WITH OTHER LOBBYISTS FOR THE TOBACCO INSTITUTE THE MEETING ATTENDED BY A REPORTER WHO THEN WROTE ABOUT IT INCLUDED A VIDEO AND DISCUSSION AGAINST AN ANTISMOKING MEASURE IN A COMMITTEE ON WHICH REPRESENTATIVE CLYBURN SITS MR. TALLON HAS DENIED BREAKING THE LAW A FELONY CARRYING A PENALTY OF UP TO FIVE YEARS IN PRISON AND A FIFTY THOUSAND DOLLAR FINE SAYING HE DIDN'T LOBBY BUT ONLY SAT IN ON THE DISCUSSION FOR MOST OF THE LEGISLATORS TURNED LOBBYISTS THE ONE YEAR BAN PROVED A NUISANCE AT BEST IT'S CLEAR THOUGH THAT THEIR CONTACTS WITH THEIR EX COLLEAGUES IN CONGRESS ARE ABOUT TO INCREASE MR. VANDER JAGT A FORMER MEMBER OF THE POWERFUL WAYS AND MEANS COMMITTEE WHO SEEKS A TAX CHANGE ON BEHALF OF AN ASSOCIATION OF FOOTBALL COACHES SAYS QUOTE I TOLD THEM HOW TO MEET WITH CONGRESSMEN BUT I COULDN'T GO WITH THEM QUOTE FREED OF THE ONE YEAR GAG HE SAYS I CERTAINLY HOPE IT WILL MAKE A DIFFERENCE AS FOR THE CORPORATIONS AND TRADE ASSOCIATIONS THAT VIED TO HIRE THE MANY LAWMAKERS WHO DEPARTED AFTER NINETEEN NINETY TWO THE YEARLONG BAN WAS LITTLE IF ANY DETERRENT EX LEGISLATORS SAY RECRUITERS DIDN'T EVEN ASK ABOUT THE RESTRICTION UNLESS THE FORMER LAWMAKERS BROUGHT IT UP WINSTON AND STRAWN LURED TWO DEMOCRATS MR. ANTHONY AND DENNIS ECKART OF OHIO FORMERLY ON THE INFLUENTIAL HOUSE ENERGY AND COMMERCE COMMITTEE CASSIDY AND ASSOCIATES SIGNED UP MARTY RUSSO OF ILLINOIS AND THE JEFFERSON GROUP HIRED DEMOCRAT JERRY HUCKABY OF LOUISIANA AND REPUBLICAN ANDY IRELAND OF FLORIDA WHO'S SINCE LEFT TO REPRESENT RINGLING BROTHERS AND BARNUM AND BAILEY FORMER CONGRESSIONAL STAFFERS ALSO FALL UNDER LOBBYING RESTRICTIONS BUT OF A MORE LIMITED SORT MICHAEL SCRIVNER FORMERLY CHIEF OF STAFF TO THE TOP REPUBLICAN AT THE ENERGY AND COMMERCE PANEL FACED NO RESTRICTIONS AT ALL UNDER THE LAW HE WAS BARRED ONLY FROM LOBBYING HIS EX BOSS REPUBLICAN NORMAN LENT OF NEW YORK BUT MR. LENT LIKEWISE LEFT CONGRESS TO BE MR. SCRIVNER'S LOBBYING PARTNER THEIR CLIENTS INCLUDE CORPORATIONS WITH INTERESTS BEFORE ENERGY AND COMMERCE AMONG THEM THE BELL TELEPHONE COMPANIES PFIZER INCORPORATED AND MOBIL CORPORATION AMONG EX STAFFERS A TOP DRAW IS ROBERT LEONARD FORMER CHIEF COUNSEL TO THE WAYS AND MEANS PANEL WHO'S JOINED FORCES WITH TWO VETERAN LOBBYISTS UNTIL NEXT MONTH THE ANNIVERSARY OF HIS DEPARTURE FROM THE COMMITTEE HE CAN'T DISCUSS CLIENTS' ISSUES WITH CHAIRMAN DAN ROSTENKOWSKI DEMOCRAT OF ILLINOIS OR WITH OTHER COMMITTEE MEMBERS AND STAFF THOUGH HE HAS CONTINUED TO SEE THEM SOCIALLY BUT MR. LEONARD CAN CONTACT OTHER MEMBERS OF CONGRESS AND THEIR STAFF ON BUSINESS AND HIS LEGAL WORK ALSO TAKES HIM TO THE INTERNAL REVENUE SERVICE AND THE TREASURY WHERE HE LIKEWISE HAS LONGTIME CONTACTS MR. LEONARD CALLS THE ONE YEAR GAG ON LOBBYING CONGRESS AN APPROPRIATE RESTRICTION BUT SENATOR DAVID BOREN D. OKLAHOMA AND CONGRESS WATCH A RALPH NADER GROUP THAT MONITORS THE REVOLVING DOOR ISSUE WANT A FIVE YEAR BAN ON EX MEMBERS LOBBYING CONGRESS MR. DOWNEY SAYS THE BAR PERHAPS OUGHT TO BE LENGTHENED TO THE TWO YEARS OF A FULL CONGRESS BUT MR. LENT ACCORDING TO HIS PARTNER LIKES TO JOKE THAT NOW THAT HE'S FREE OF THE RESTRICTION CONGRESS SHOULD MAKE IT FIFTEEN YEARS TO LIMIT THE COMPETITION STEVEN HOFFENBERG THE UBIQUITOUS DEBT COLLECTOR WHO MADE AN UNSUCCESSFUL BID FOR THE NEW YORK POST LAST YEAR HASN'T GONE AWAY MR. HOFFENBERG WHO HAS CONTROLLED OR BEEN AFFILIATED WITH A CHAIN OF COMMERCIAL DEBT COLLECTION COMPANIES THAT HAS BILKED DOZENS OF SMALL BUSINESSES OVER THE YEARS IS NOW APPARENTLY OPERATING HERE THROUGH TWO NEW COMPANIES STRATFORD CREDIT CORPORATION AND HALEY CAPITAL CORPORATION MR. HOFFENBERG FACES CIVIL FRAUD CHARGES FROM THE SECURITIES AND EXCHANGE COMMISSION AND HAS BEEN PENALIZED IN TWO STATES FOR KEEPING DEBTS HIS COMPANIES HAD COLLECTED FOR CLIENTS YET HE HAS CONTINUED OPERATING WITH RELATIVE EASE THIS SAY CRITICS MAKES HIM A PERFECT EXAMPLE OF THE PROBLEMS PLAGUING THE LOOSELY REGULATED COMMERCIAL DEBT COLLECTION BUSINESS COMMERCIAL DEBT COLLECTORS ARE HIRED BY COMPANIES TO RECOVER OUTSTANDING DEBT FROM OTHER COMPANIES THEY TYPICALLY RECEIVE A TWENTY PERCENT COMMISSION ON THE DEBT THEY COLLECT QUOTE IT'S CASTING A TERRIBLE PALL OVER THE WHOLE INDUSTRY WHEN A COMPANY KEEPS GETTING AWAY WITH THINGS LIKE THIS QUOTE SAYS KATHLEEN O'CONNOR PRESIDENT OF THE AMERICAN COMMERCIAL COLLECTORS ASSOCIATION INCORPORATED A TRADE GROUP BASED IN MINNEAPOLIS I JUST CAN'T BELIEVE THAT THE STATE ATTORNEY GENERAL'S OFFICE IN NEW YORK HASN'T DONE ANYTHING SOMEBODY SHOULD BE AFTER THESE GUYS MR. HOFFENBERG DECLINED REPEATED REQUESTS FOR COMMENT MR. HOFFENBERG'S ATTORNEY ALAN FRAADE A PARTNER IN THE NEW YORK LAW FIRM OF MINTZ AND FRAADE SAYS MR. HOFFENBERG DOESN'T WANT TO BE INTERVIEWED BECAUSE HE HAS BEEN MISQUOTED AND MISREPRESENTED BY THE MEDIA FOR ITS PART THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE SAYS THAT IT CAN'T ADDRESS COMMERCIAL DEBT COLLECTION SCAMS BECAUSE THERE ARE NO STATE LAWS REGULATING THE INDUSTRY A SITUATION COMMON IN MOST STATES BUT SMALL BUSINESSES ARE INCREASINGLY BEING VICTIMIZED BY COMMERCIAL DEBT COLLECTORS ACCORDING TO THE COMMERCIAL COLLECTION AGENCY SECTION OF THE COMMERCIAL LAW LEAGUE OF AMERICA A TRADE GROUP BASED IN NEW PROVIDENCE N. J. UNLIKE CONSUMER DEBT COLLECTORS COMMERCIAL AGENCIES HAVE RECEIVED LITTLE ATTENTION AND ARE NOT FEDERALLY REGULATED AND IT IS THE BUSINESS PRACTICES OF THOSE SUCH AS MR. HOFFENBERG THAT HAVE LED MANY TO CALL FOR TIGHTENED REGULATIONS OF THE COMMERCIAL DEBT COLLECTION BUSINESS EARLY LAST YEAR MR. HOFFENBERG BRIEFLY ENJOYED THE SPOTLIGHT WHEN HE MADE AN UNSUCCESSFUL BID TO RESCUE THE AILING NEW YORK POST IN FEBRUARY THE S. E. C. ANNOUNCED THAT IT WAS SUING HIS COMPANY TOWERS FINANCIAL CORPORATION A CONGLOMERATE SPECIALIZING IN COLLECTING BAD HOSPITAL DEBT FOR DEFRAUDING ABOUT THREE THOUSAND INVESTORS BY DOCTORING THE COMPANY BOOKS THIS WASN'T TOWERS' FIRST RUN IN WITH THE LAW IN NINETEEN EIGHTY SEVEN THE APPELLATE DIVISION OF THE SUPERIOR COURT OF NEW JERSEY IN TRENTON ORDERED TOWERS COLLECTION SERVICE A TOWERS SUBSIDIARY TO PAY ALMOST TWENTY THOUSAND DOLLARS TO L. C. P. CHEMICALS AND PLASTICS INCORPORATED A SMALL LINDEN N. J. CONCERN NOW OPERATING AS HANLIN GROUP INCORPORATED L. C. P. HAD SUED TOWERS ACCUSING IT OF IMPROPERLY WITHHOLDING DEBTS IT HAD COLLECTED ON L. C. P.'S BEHALF WHILE SIMPLY POCKETING COLLECTED DEBTS IS NOT THE MOST SOPHISTICATED WAY COMMERCIAL COLLECTORS RIP OFF SMALL BUSINESSES LAW ENFORCEMENT OFFICIALS SAY IT IS THE MOST COMMON AND L. C. P. WASN'T THE LAST BUSINESS STUNG BY ONE OF MR. HOFFENBERG'S COMPANIES IN NINETEEN EIGHTY NINE COMPLAINTS THAT TOWERS COLLECTION SERVICE OF CALIFORNIA INCORPORATED A TOWERS SUBSIDIARY BASED IN SANTA MONICA ALSO POCKETED COLLECTED DEBTS OF DOZENS OF BUSINESSES LED TO A TWO YEAR INVESTIGATION BY THE NOW DEFUNCT CALIFORNIA STATE BUREAU OF COLLECTION AND INVESTIGATIVE SERVICES THE INVESTIGATION LED TOWERS TO SETTLE WITH THE STATE IN NINETEEN NINETY ONE IT PROMISED TO PROVIDE RESTITUTION TO ITS CLIENTS PAID THIRTY ONE THOUSAND DOLLARS IN STATE LEGAL COSTS AND WAS PLACED ON A THREE YEAR PROBATION ACCORDING TO THE CALIFORNIA STATE ATTORNEY GENERAL'S OFFICE BY THE TIME THE S. E. C. CAUGHT UP WITH MR. HOFFENBERG LAST YEAR SEEKING ABOUT FOUR HUNDRED MILLION DOLLARS IN DAMAGES TOWERS WAS NEARLY INSOLVENT IT FILED FOR CHAPTER ELEVEN BANKRUPTCY PROTECTION IN MARCH THAT EFFECTIVELY PUT THE S. E. C.'S ACTION ON HOLD AS COURT APPOINTED TRUSTEES BEGAN SORTING THROUGH TOWERS' AFFAIRS WHILE TOWERS WAS SINKING MR. HOFFENBERG HELPED A FORMER TOWERS EMPLOYEE AND OLD FRIEND LAWRENCE LOWY START A NEW COMMERCIAL DEBT COLLECTION COMPANY BY FRAUDULENTLY TRANSFERRING SIX MILLION DOLLARS AND OTHER ASSETS FROM TOWERS ACCORDING TO A LAWSUIT FILED LATE LAST YEAR BY THE TRUSTEES IN U. S. BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AN ATTORNEY FOR MR. HOFFENBERG DENIES THE ALLEGATIONS ALTHOUGH THE NEW COMPANY DIVERSIFIED CREDIT CORPORATION OPERATES FROM THE SAME TRUMP TOWER OFFICES FROM WHICH MR. HOFFENBERG IS PUBLISHING A NEW WEEKLY NEWSPAPER HER NEW YORK HIS ATTORNEYS SAY THAT HE IS ONLY A CONSULTANT TO DIVERSIFIED IN A LETTER TO THIS NEWSPAPER AN ATTORNEY REPRESENTING MR. HOFFENBERG SAYS HIS SERVICES TO DIVERSIFIED WERE LIMITED TO TRAINING SALES AND MARKETING PERSONNEL A CLASSIFIED AD DIVERSIFIED PLACED IN THE NEW YORK TIMES LAST MAY ALSO EXTOLLED MR. HOFFENBERG'S SALESMANSHIP QUOTE WORK WITH THE KING OF ACCOUNTS RECEIVABLE COLLECTIONS LEARN STEVEN HOFFENBERG'S WAYS OF SELLING QUOTE BUT COMPLAINTS ABOUT THE NEW BUSINESS ARE FAMILIAR ONES THE BETTER BUSINESS BUREAU IN NEW YORK SAYS THAT SINCE LAST SUMMER IT HAS RECEIVED EIGHTY PHONE CALLS AND TWELVE COMPLAINTS FROM SMALL BUSINESSES CHARGING THAT DIVERSIFIED HAS POCKETED COLLECTED DEBTS APPARENTLY DIVERSIFIED'S DAYS ARE NUMBERED MR. HOFFENBERG'S ATTORNEY MR. FRAADE SAYS THAT DIVERSIFIED WHICH ALSO HAS OFFICES IN MELVILLE N. Y. IS IN FINANCIAL DISTRESS HE ADDS THAT DISCUSSIONS HAVE TAKEN PLACE WITH RESPECT TO THE POSSIBLE BANKRUPTCY FILING UNDER CHAPTER ELEVEN NONETHELESS THERE IS YET ANOTHER DEBT COLLECTION COMPANY THAT BEGAN OPERATING A FEW MONTHS AGO AND IS AFFILIATED WITH MR. HOFFENBERG AT THE BEHEST OF MR. HOFFENBERG'S UNCLE AND BUSINESS PARTNER EUGENE SHERMAN MR. FRAADE INCORPORATED STRATFORD CREDIT CORPORATION LAST AUGUST THE COMPANY SHARES OFFICE SPACE WITH HALEY CAPITAL CORPORATION A BUSINESS RUN BY MR. HOFFENBERG THAT ACCORDING TO A CLASSIFIED AD IN HER NEW YORK PROVIDES FINANCING FOR BUYING OR SELLING A BUSINESS AND PUBLIC OR PRIVATE UNDERWRITINGS STRATFORD IS PEPPERED WITH OLD ASSOCIATES OF MR. HOFFENBERG THE COMPANY'S PRESIDENT STEVEN DREYFUS WAS A TOWERS EXECUTIVE MICHAEL ROSOFF TOWERS' FORMER GENERAL COUNSEL WHO ALSO DID LEGAL WORK FOR DIVERSIFIED HAS AN OFFICE AT STRATFORD AND REPRESENTS THE COMPANY ON WHAT HE DESCRIBES AS COMMERCIAL MATTERS MR. DREYFUS SAYS THAT MR. HOFFENBERG HAS NOTHING TO DO WITH STRATFORD ASKED WHY STRATFORD SHARES OFFICES WITH HALEY CAPITAL MR. DREYFUS REPLIES LET'S JUST SAY IT'S MORE ECONOMICAL THE FOLLOWING U. S. TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ENSERCH CORPORATION ONE HUNDRED FIFTY MILLION DOLLARS OF TEN YEAR NOTES VIA COMPETITIVE BID A. C. F. INDUSTRIES HOLDING CORPORATION TWO HUNDRED MILLION DOLLARS OF FIVE YEAR SENIOR SECURED ZERO COUPON NOTES AND TWO HUNDRED FIFTY MILLION DOLLARS OF TEN YEAR SENIOR NOTES VIA MERRILL LYNCH AND COMPANY AMPAL AMERICAN ISRAEL CORPORATION FOUR MILLION UNITS VIA LEHMAN BROTHERS INCORPORATED ANESTA CORPORATION INITIAL TWO MILLION SHARES VIA MONTGOMERY SECURITIES CELESTIAL SEASONINGS INCORPORATED FOUR HUNDRED TWENTY FIVE THOUSAND SHARES VIA PAINEWEBBER INCORPORATED CMG INFORMATION SERVICES INITIAL ONE POINT THREE MILLION SHARES VIA PIPER JAFFRAY INCORPORATED CONGOLEUM CORPORATION NINETY MILLION DOLLARS OF SEVEN YEAR SENIOR NOTES VIA DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION CONSEP INCORPORATED INITIAL TWO POINT FIVE MILLION SHARES VIA PRUDENTIAL SECURITIES INCORPORATED CRISTALERIAS DE CHILE S. A. INITIAL THREE POINT SEVEN MILLION AMERICAN DEPOSITARY SHARES VIA GOLDMAN SACHS AND COMPANY DAIMLER BENZ A. G. FIFTEEN MILLION AMERICAN DEPOSITARY SHARES VIA C. J. LAWRENCE INCORPORATED MERRILL LYNCH AND GOLDMAN SACHS ESMOR CORRECTIONAL SERVICES INITIAL EIGHT HUNDRED THIRTY THREE THOUSAND THREE HUNDRED THIRTY THREE SHARES VIA JANNEY MONTGOMERY SCOTT INCORPORATED FRANKLIN QUEST COMPANY TWO POINT FIVE MILLION SHARES VIA MERRILL LYNCH GAMETEK INCORPORATED INITIAL TWO POINT ONE MILLION SHARES VIA OPPENHEIMER AND COMPANY HUGOTON ENERGY CORPORATION INITIAL THREE MILLION SHARES VIA DONALDSON LUFKIN AND JENRETTE IMMUNOGEN INCORPORATED TWO POINT FIVE MILLION SHARES VIA SMITH BARNEY SHEARSON INCORPORATED AND MONTGOMERY SECURITIES IMPERIAL CREDIT SEVENTY FIVE MILLION DOLLARS OF TEN YEAR SENIOR NOTES VIA LEHMAN BROTHERS INTERIM SERVICES INCORPORATED INITIAL TEN MILLION SHARES VIA GOLDMAN SACHS K. L. A. INSTRUMENTS CORPORATION TWO MILLION SHARES VIA KIDDER PEABODY AND COMPANY L. A. T. SPORTSWEAR INCORPORATED INITIAL ONE POINT TWO MILLION SHARES VIA ROBINSON HUMPHREY COMPANY LEAR SEATING ONE HUNDRED FORTY FIVE MILLION DOLLARS OF EIGHT YEAR SUBORDINATED NOTES VIA LEHMAN BROTHERS NEXAGEN INCORPORATED INITIAL TWO POINT EIGHT MILLION SHARES VIA ALEXANDER BROWN AND SONS INCORPORATED O'SULLIVAN INDUSTRIES HOLDINGS INCORPORATED INITIAL FIFTEEN MILLION SHARES VIA MERRILL LYNCH PLAYTEX F. P. GROUP INCORPORATED INITIAL TWENTY MILLION SHARES VIA MERRILL LYNCH PLAYTEX FAMILY PRODUCTS CORPORATION THREE HUNDRED SIXTY MILLION DOLLARS OF NINE YEAR SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH POST PROPERTIES FOUR MILLION SHARES VIA MERRILL LYNCH REPLIGEN CORPORATION TWO POINT FIVE MILLION SHARES VIA LEHMAN BROTHERS ROCK TENN COMPANY INITIAL FOUR POINT FIVE MILLION CLASS A COMMON SHARES VIA MORGAN STANLEY AND COMPANY SECURITY CONNECTICUT CORPORATION INITIAL EIGHT POINT FIVE MILLION SHARES VIA GOLDMAN SACHS WESTERN DIGITAL CORPORATION SIX POINT ONE MILLION SHARES VIA KIDDER PEABODY YPF SOCIEDAD ANONIMA THREE HUNDRED FIFTY MILLION DOLLARS OF SENIOR NOTES VIA C. S. FIRST BOSTON INCORPORATED ILLINOIS ONE HUNDRED MILLION DOLLARS OF SALES TAX REVENUE BONDS VIA COMPETITIVE BID SAN ANTONIO TEXAS SEVEN HUNDRED FIFTY MILLION DOLLARS OF ELECTRIC AND GAS SYSTEM REVENUE REFUNDING BONDS VIA A GOLDMAN SACHS GROUP WASHINGTON PUBLIC POWER SUPPLY SYSTEM SIX HUNDRED SIXTY MILLION DOLLARS OF REFUNDING BONDS VIA A C. S. FIRST BOSTON GROUP BRITAIN'S CABLE AND WIRELESS P. L. C. SAID IT IS PART OF A CONSORTIUM TO PLAN A HIGH CAPACITY FIBER OPTIC SUBMARINE CABLE TO LINK FOURTEEN ISLANDS IN THE CARIBBEAN THE COST OF THE INSTALLED SYSTEM IS EXPECTED TO BE SIXTY MILLION DOLLARS WITH CABLE AND WIRELESS TO INVEST SIXTY SIX PERCENT FRANCE TELECOM EIGHTEEN PERCENT AND AMERICAN TELEPHONE AND TELEGRAPH COMPANY SIX PERCENT THERE ARE SEVERAL OTHER MINORITY SHAREHOLDERS CABLE AND WIRELESS SAID THE EASTERN CARIBBEAN FIBER SYSTEM WILL COVER ONE THOUSAND SEVENTY THREE MILES AND WILL EXTEND FROM THE BRITISH VIRGIN ISLANDS IN THE NORTH TO TRINIDAD IN THE SOUTH THE SYSTEM IS INTENDED TO IMPROVE SECURITY FROM HURRICANES AND MEET FUTURE TELECOMMUNICATIONS DEMANDS CONSTRUCTION OF THE CABLE IS EXPECTED TO START IN MARCH IT IS EXPECTED TO BE READY TO BEGIN SERVICE BY EARLY NINETEEN NINETY FIVE I. V. F. AMERICA INCORPORATED NAMED GERARDO CANET FORTY EIGHT YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE IN MID FEBRUARY HE SUCCEEDS PHILIPPE L. SOMMER WHO HAD HELD BOTH POSTS ON AN INTERIM BASIS I. V. F. BEGAN UNDERGOING MANAGEMENT CHANGES IN SEPTEMBER WHEN ANDREW DAHL FORMERLY PRESIDENT AND CHIEF EXECUTIVE LEFT THE COMPANY TO PURSUE OTHER INTERESTS A SPOKESMAN SAID AT THAT TIME MR. SOMMER MANAGING DIRECTOR OF MEDICAL VENTURES HOLDINGS INCORPORATED IN NEW YORK AGREED TO WORK PART TIME AT I. V. F. UNTIL A SUCCESSOR FOR MR. DAHL WAS NAMED MEDICAL VENTURES IS A PRINCIPAL HOLDER OF I. V. F. MR. CANET WAS EXECUTIVE VICE PRESIDENT OF CURATIVE TECHNOLOGIES INCORPORATED EAST SETAUKET N.Y AND PRESIDENT OF ITS WOUND CARE CENTER DIVISION I. V. F. WHICH PROVIDES FERTILITY TREATMENT ALSO SAID EDWIN SNAPE A MANAGING GENERAL PARTNER OF THE VISTA GROUP IN NEW CANAAN CONNECTICUT RESIGNED AS CHAIRMAN AS HE HAD INTENDED WHEN A NEW CHIEF EXECUTIVE WAS NAMED CURATIVE TECHNOLOGIES SAID ITS PRESIDENT AND CHIEF EXECUTIVE RUSSELL B. WHITMAN WILL ASSUME MR. CANET'S DUTIES THE COMPANY ADDED THAT IT HAD NO IMMEDIATE PLANS TO NAME A SUCCESSOR COORS BREWING COMPANY RUSHING INTO THE NEW MARKET FOR SO CALLED ICE BEER UNVEILED PLANS TO SELL ITS OWN VERSION TO BE CALLED COORS ARTIC ICE COORS A UNIT OF ADOLPH COORS COMPANY GOLDEN COLORADO IS LICENSING AN ICE BREWING PROCESS PATENTED BY CANADA'S LABATT BREWERIES A UNIT OF JOHN LABATT LIMITED THE IDEA BEHIND ICE BEER IS TO BREW IT AT SUCH A LOW TEMPERATURE THAT ICE CRYSTALS FORM THE CRYSTALS ARE FILTERED OUT OSTENSIBLY CHANGING THE BEER'S TASTE SOMEHOW QUOTE IT SUPPOSEDLY HELPS CREATE A BOLDER CLEANER TASTE AND FINISH QUOTE A COORS SPOKESWOMAN SAID COORS THE THIRD LARGEST U. S. BREWER IS PLAYING CATCH UP WITH U. S. BEER GIANTS ANHEUSER BUSCH COMPANIES AND MILLER BREWING COMPANY A UNIT OF PHILIP MORRIS COMPANIES WHICH INTRODUCED THEIR ICE BEERS IN SOME MARKETS LAST FALL ANHEUSER CALLS ITS VERSION ICE DRAFT MILLER'S IS ICEHOUSE THOUGH ICE BEER IS TOO NEW TO HAVE CAPTURED A SIGNIFICANT PART OF THE U. S. MARKET COORS WANTED TO BE PREPARED IN CASE ICE BEER TOOK OFF IN POPULARITY IN THE WAY THAT LIGHT BEER DID BUT DRY BEER DIDN'T SAID EMANUEL GOLDMAN ANALYST AT PAINEWEBBER INCORPORATED COORS DIDN'T FEEL THAT IT COULD SIT BACK AND NOT HAVE AN ENTRY IN THE ICE BEER MARKET HE SAID IN CANADA ICE BEER HAS SEIZED TEN PERCENT OF THE DOMESTIC BEER MARKET SINCE BEING INTRODUCED EARLY LAST YEAR BY LABATT AND RIVAL MOLSON BREWERIES A UNIT OF MOLSON COMPANIES OF TORONTO LABATT WHICH SPENT TEN YEARS DEVELOPING ITS ICE BREWING PROCESS WILL EARN ABOUT FOUR MILLION DOLLARS A YEAR FROM THE COORS LICENSING PACT ANALYSTS ESTIMATE THE CANADIAN BREWER WHICH SELLS ITS LABATT ICE BEER BRAND IN CANADA THE U. S. AND BRITAIN SAYS IT EXPECTS TO SIGN SIMILAR LICENSING PACTS WITH BREWERS IN OTHER COUNTRIES LABATT HAS AGGRESSIVELY TRIED TO BLOCK COMPETITORS FROM USING THE PHRASES ICE BEER AND ICE BREWED LABATT HAS SUED MOLSON AND MILLER CLAIMING THEY VIOLATED LABATT'S INTELLECTUAL PROPERTY RIGHTS MILLER AND MOLSON HAVE CALLED THE SUITS GROUNDLESS COORS WHICH PLANS TO INTRODUCE ARTIC ICE IN NINE MARKETS ON FEBRUARY FOURTEENTH SAID IT WILL BE ONE OF COORS'S HIGHER PRICED BEERS ALONG WITH THE COMPANY'S SPECIALTY BRANDS U. S. STEEL IMPORTS ROSE JUST ZERO POINT NINE PERCENT IN NOVEMBER FROM OCTOBER BUT ROSE ABOUT THIRTY FOUR PERCENT FROM NOVEMBER NINETEEN NINETY TWO IMPORTS IN THE LATEST MONTH TOTALED TWO MILLION ONE HUNDRED SIXTY ONE THOUSAND FIVE HUNDRED NINETY SIX TONS COMPARED WITH TWO MILLION ONE HUNDRED FORTY TWO THOUSAND EIGHT HUNDRED NINE TONS IN OCTOBER AND ONE MILLION SIX HUNDRED FOURTEEN THOUSAND TONS A YEAR EARLIER ACCORDING TO THE AMERICAN IRON AND STEEL INSTITUTE'S COMPILATION OF COMMERCE DEPARTMENT STATISTICS IN NOVEMBER IMPORTS REPRESENTED TWENTY THREE POINT SIX PERCENT OF CONSUMPTION UP SLIGHTLY FROM TWENTY TWO POINT NINE PERCENT IN OCTOBER AND UP FROM TWENTY POINT EIGHT PERCENT IN NOVEMBER NINETEEN NINETY TWO STEEL IMPORTS FOR THE FIRST ELEVEN MONTHS OF NINETEEN NINETY THREE TOTALED SEVENTEEN MILLION SIX HUNDRED FIFTY EIGHT THOUSAND NINE HUNDRED SEVENTY TONS UP TWELVE POINT FOUR PERCENT FROM FIFTEEN MILLION SEVEN HUNDRED TEN THOUSAND TWO HUNDRED FORTY ONE TONS IN THE YEAR EARLIER PERIOD IMPORT PENETRATION WAS EIGHTEEN POINT SIX PERCENT OF THE MARKET FOR THIS PERIOD OF NINETEEN NINETY THREE STEEL EXPORTS IN NOVEMBER TOTALED TWO HUNDRED NINETY THOUSAND SEVEN HUNDRED NINETY FIVE TONS UP ZERO POINT FOUR PERCENT FROM TWO HUNDRED EIGHTY NINE THOUSAND FIVE HUNDRED TWENTY SIX TONS IN OCTOBER AND DOWN EIGHTEEN POINT TWO PERCENT FROM THE THREE HUNDRED FIFTY FIVE THOUSAND TWO HUNDRED EIGHTY TWO TONS IN NOVEMBER NINETEEN NINETY TWO EXPORTS FOR THE FIRST ELEVEN MONTHS OF LAST YEAR TOTALED THREE MILLION SIX HUNDRED EIGHTY THOUSAND FIVE HUNDRED NINETY FOUR TONS DOWN SIX POINT SIX PERCENT FROM THREE MILLION NINE HUNDRED THIRTY NINE THOUSAND TWO HUNDRED TWELVE TONS EXPORTED IN THE SAME PERIOD IN NINETEEN NINETY TWO NIELSEN MEDIA RESEARCH SAID IT WILL INCREASE BY TWENTY FIVE PERCENT TO FIVE THOUSAND THE NUMBER OF HOUSEHOLDS IN THE SAMPLE IT USES TO CALCULATE NATIONAL TELEVISION RATINGS THE SAMPLE CURRENTLY FOUR THOUSAND HOUSEHOLDS PROVIDES NATIONWIDE AUDIENCE ESTIMATES FOR THE FOUR BROADCAST NETWORKS THIRTY TWO CABLE NETWORKS AND HUNDREDS OF SYNDICATED SHOWS STATISTICALLY A LARGER SAMPLE WILL LIKELY BE OF MOST BENEFIT TO SMALL CABLE CHANNELS AND SYNDICATED SHOWS WITH MORE HOUSEHOLDS PARTICIPATING IN THE RATINGS SURVEY LESSER VIEWED PROGRAMS ARE MORE APT TO SHOW UP IN THE RANKINGS AND SUCH PROGRAMMING WON'T BE AS VULNERABLE TO THE T. V. PREFERENCES OF JUST ONE OR TWO HOUSEHOLDS THE BIGGER SAMPLE WILL ALSO MAKE IT EASIER TO BREAK DOWN AUDIENCE ESTIMATES INTO SUCH DEMOGRAPHIC FACTORS AS AGE GENDER AND INCOME NIELSEN SAID THE COMPANY IN ITS SURVEY USES QUOTE PEOPLE METERS QUOTE SMALL DEVICES THAT LET HOUSEHOLD MEMBERS INDICATE WHEN THEY ARE IN A ROOM WHERE A T. V. IS ON PROVIDING NIELSEN WITH DEMOGRAPHIC INFORMATION THE EXPANSION WILL BEGIN IN SEPTEMBER AND TAKE TWO YEARS TO COMPLETE NIELSEN IS A UNIT OF DUN AND BRADSTREET CORPORATION AMERICAN PETROLEUM INSTITUTE INVENTORY STATISTICS RELEASED WEDNESDAY SHOWED THAT CRUDE OIL STOCKS DECREASED BY FIVE HUNDRED FIVE THOUSAND BARRELS TO THREE HUNDRED THIRTY THREE MILLION FIVE HUNDRED FORTY THOUSAND BARRELS LAST WEEK DISTILLATE OR HEATING OIL AND DIESEL FUEL INVENTORIES DECREASED BY FOUR MILLION SEVEN HUNDRED SEVENTY THREE THOUSAND BARRELS TO ONE HUNDRED THIRTY SEVEN MILLION SEVENTY NINE THOUSAND BARRELS GASOLINE INVENTORIES ROSE IN THURSDAY'S COMMODITIES COLUMN THE FIGURES WERE MISSTATED MONEY MAGAZINE WHICH IS PART OF TIME WARNER INCORPORATED'S PUBLISHING UNIT RECORDED A THREE POINT THREE PERCENT DROP IN ITS ADVERTISING PAGES IN NINETEEN NINETY THREE AN ARTICLE THURSDAY INCORRECTLY STATED THAT MONEY'S AD PAGES DECLINED SEVEN POINT FIVE PERCENT LAST YEAR BASED ON FIGURES FROM PUBLISHERS INFORMATION BUREAU THAT DIDN'T INCLUDE MONEY'S EXTRA YEAR END EDITION SOUTHERN COMPANY ATLANTA WILL TAKE A ONETIME AFTER TAX CHARGE OF THIRTY EIGHT MILLION DOLLARS IN THE FIRST QUARTER REDUCING PER SHARE EARNINGS TWELVE CENTS TO COVER AN EARLY RETIREMENT PROGRAM AT ITS GEORGIA POWER COMPANY UNIT GEORGIA POWER SAID IT WILL OFFER THE PROGRAM TO FOUR HUNDRED FORTY FIVE WORKERS AND IS AIMING FOR A PARTICIPATION RATE OF AT LEAST EIGHTY PERCENT THE COMPANY SAID IT EXPECTS TO RECOUP THE COSTS IN ABOUT TWO YEARS THROUGH REDUCED SALARIES AND BENEFITS GEORGIA POWER HAS TRIMMED ITS WORK FORCE BY FIFTEEN PERCENT SINCE NINETEEN EIGHTY EIGHT TO CUT COSTS IN THE FACE OF RISING COMPETITION FOR THE FIRST QUARTER OF NINETEEN NINETY THREE THE UTILITY HOLDING COMPANY REPORTED EARNINGS OF ONE HUNDRED SEVENTY SEVEN MILLION DOLLARS OR FIFTY SIX CENTS A SHARE ON REVENUE OF ONE POINT EIGHT FOUR BILLION DOLLARS DEGUSSA A. G.'S SUPERVISORY BOARD APPROVED THE PROPOSAL TO PAY A DIVIDEND OF SEVEN MARKS A SHARE FOUR DOLLARS AND THREE CENTS FOR THE YEAR THAT ENDED SEPTEMBER THIRTIETH THE GERMAN SPECIALTY CHEMICALS AND METALS COMPANY PAID SEVEN MARKS THE PREVIOUS TWO FISCAL YEARS DEGUSSA'S SUPERVISORY BOARD ALSO VOTED TO CUT THE SIZE OF DEGUSSA'S BOARD BY TWO MEMBERS THE REDUCTION IS CONNECTED WITH THE WINDING UP OF ITS TWO YEAR RESTRUCTURING PROGRAM QUOTE THE GOAL OF PARING DOWN THE COMPANY'S SECTORS AND DECENTRALIZING MANAGEMENT WHICH WILL BE SIGNIFICANTLY FINISHED IN NINETEEN NINETY FOUR HAS RESULTED IN A FURTHER TIGHTENING IN THE HIGHEST MANAGEMENT LEVEL QUOTE THE COMPANY SAID INVESTORS' HOPES FOR A SPEEDY RESOLUTION OF COLUMBIA GAS SYSTEM'S BANKRUPTCY PROCEEDING MAY PROVE TO BE PIPE DREAMS SKEPTICS SAY THE NATURAL GAS UTILITY AND PIPELINE COMPANY ANNOUNCED LAST WEEK THAT IT HAD FILED A CHAPTER ELEVEN REORGANIZATION PLAN FOR ITS TRANSMISSION SUBSIDIARY MIRED ALONG WITH THE PARENT IN BANKRUPTCY COURT SINCE JULY NINETEEN NINETY ONE INVESTORS RUSHED TO BUY THE PARENT'S STOCK WHICH SOARED MORE THAN THREE POINTS IN MIDWEEK BEFORE SETTLING BACK FRIDAY TO TWENTY FIVE AND ONE QUARTER OFF THREE QUARTERS BUT BANKRUPTCY SPECIALISTS WARN THAT THE PLAN FILED IN FEDERAL BANKRUPTCY COURT IN WILMINGTON DELAWARE DOESN'T NECESSARILY HERALD AN EARLY END TO THIS LITIGATION SNARLED PROCEEDING QUOTE THERE IS A LOW PROBABILITY OF THIS COMPANY EMERGING FROM BANKRUPTCY COURT BEFORE MID NINETEEN NINETY FIVE QUOTE SAYS T. K. DUGGAN A FOUNDER OF DELAWARE BAY COMPANY WHICH SPECIALIZES IN DISTRESSED DEBT COLUMBIA GAS IS AN ANOMALY AMONG BANKRUPTCIES A COMPANY WITH THE WHEREWITHAL TO PAY ITS DEBTS THAT DUCKED INTO BANKRUPTCY COURT TO DITCH SOME OF THEM IT HAS BEEN TRYING TO SHED HIGH PRICED SUPPLY CONTRACTS BETWEEN ITS TRANSMISSION ARM AND NATURAL GAS PRODUCERS THAT WERE SIGNED BEFORE THE NATURAL GAS BUBBLE BURST THE VALUE OF COLUMBIA GAS'S STOCK DEPENDS BOTH ON THE SUBSIDIARY'S EVENTUAL SETTLEMENT WITH PRODUCERS AND ON THE TIMING OF THAT PEACE SINCE THE BANKRUPTCY FILING COLUMBIA GAS'S WAR HAS INTENSIFIED WITH THE PRODUCERS WHICH INCLUDE EXXON AND UNION PACIFIC THE PRODUCERS CLAIM THEY WERE DONE OUT OF TEN BILLION DOLLAR PLUS BY COLUMBIA'S ABROGATION OF CONTRACTS THEY ALSO WANT THE SECURED LOAN COLUMBIA MADE TO THE TRANSMISSION SUBSIDIARY NOW VALUED AT ONE POINT SEVEN FIVE BILLION DOLLARS TO BE TREATED AS AN EQUITY INFUSION WHICH WOULD RANK LOWER ON THE CREDIT LADDER THAN THEIR UNSECURED CLAIM AND THEY'RE TRYING TO REVERSE ABOUT FOUR HUNDRED MILLION DOLLARS OF PAYMENTS THE TRANSMISSION SUBSIDIARY MADE TO COLUMBIA IN YEARS BEFORE THE FILING EVEN SORTING OUT HOW MUCH THE PRODUCERS CAN CLAIM HAS PROVED THORNY IN OCTOBER NINETEEN NINETY TWO THE BANKRUPTCY COURT APPOINTED A MEDIATOR TO DECIDE WHAT METHODOLOGY TO USE TO CALCULATE PRODUCERS' CLAIMS THOSE HEARINGS ENDED IN NOVEMBER NINETEEN NINETY THREE AND PROBABLY SPURRED THE TRANSMISSION COMPANY'S FILING SAYS LES E. LEVY IN MERRILL LYNCH'S HIGH YIELD RESEARCH DEPARTMENT HE BELIEVES THAT THE COMPANY'S NINE HUNDRED MILLION DOLLAR SETTLEMENT OFFER WAS SHAPED BY THE EVIDENCE AT THE HEARINGS THE PRODUCERS SAY THAT'S TOO LITTLE STILL SOME ANALYSTS VIEW THE COMPANY'S TALK OF A POTENTIALLY LOW SETTLEMENT WHICH THE TRANSMISSION COMPANY COULD JUST ABOUT AFFORD ON ITS OWN AS AN ENCOURAGING SIGN THAT THE MEDIATOR WILL AGREE WITH THE COMPANY'S METHODOLOGY FOR CALCULATING CLAIMS DAVID FLEISCHER OF GOLDMAN SACHS INVESTMENT RESEARCH ALREADY ENTHUSIASTIC RUSHED OUT A BUY RECOMMENDATION BECAUSE HE BELIEVES THE STOCK WILL BE WORTH THIRTY DOLLARS IN THREE TO SIX MONTHS TO PROPEL COLUMBIA GAS TOWARD A RESOLUTION PRODUCERS ARE BEATING THE BUSHES FOR SUITORS THE COMPANY LOOKS GOOD IT HAS REDUCED ITS EXPOSURE TO GAS PRICE ZIGZAGS AND CAN CHARGE HIGHER RATES ON ITS PIPELINE CASH FLOW WAS A STRONG SIX HUNDRED FORTY MILLION DOLLARS IN NINETEEN NINETY THREE SAYS MR. LEVY OF MERRILL LYNCH AND IS LIKELY TO KEEP GROWING AT FIFTEEN PERCENT BUT A SMALL CHANGE IN THAT SETTLEMENT AND IN TIMING WOULD MAKE A BIG DIFFERENCE IF THE PRODUCERS WERE TO GET AS MUCH AS ONE POINT THREE BILLION DOLLARS COLUMBIA GAS STOCK PROBABLY WOULDN'T EXCEED TWENTY EIGHT DOLLARS SAYS MR. LEVY THAT'S LESS THAN ELEVEN PERCENT FROM HERE NOT A SIZZLING RETURN IF INVESTORS HAVE TO WAIT A YEAR OR MORE FOR THE SETTLEMENT DREMAN VALUE MANAGEMENT BECAME COLUMBIA'S THIRD LARGEST HOLDER BY ACCUMULATING HALF ITS STAKE SHORTLY AFTER THE BANKRUPTCY FILING AND THE OTHER HALF IN THE QUARTER THROUGH SEPTEMBER NINETEEN NINETY THREE WHEN THE STOCK DIPPED AGAIN THIS IS JUST LIKE TEXACO EXULTS DAVID DREMAN HE IS ENTHUSIASTIC ABOUT THE COMPANY'S STRONG POSITION AS NATURAL GAS PRICES RISE ARGUING THAT THE STOCK WILL BE WORTH THIRTY FIVE DOLLARS IF YOU CAN HOLD OUT YET HE ISN'T BUYING MORE SAYING IT'S A STRONG HOLD FOR US RIGHT NOW NO TELL TELMEX THE MEXICAN GOVERNMENT QUIETLY SOLD ABOUT ONE BILLION DOLLARS IN TELEFONOS DE MEXICO SHARES ON THE NEW YORK STOCK EXCHANGE DURING NOVEMBER THE SHARES WERE SOLD THROUGH NACIONAL FINANCIERA MEXICO'S MARKET SAVVY DEVELOPMENT BANK THE SALES OCCURRED AMID THE BIG POST NAFTA RALLY IN MEXICAN STOCKS THE GOVERNMENT IS PACKAGING THE LAST OF ITS SHARES INTO A CONVERTIBLE BOND THEN THE SUPPLY OVERHANG ON THE STOCK WILL BE GONE TRADERS FIGURE THAT'S ONE REASON TELMEX SHARES ARE UP THREE PERCENT SINCE DECEMBER THIRTY FIRST TELMEX THIS MONTH ALSO ANNOUNCED A THREE HUNDRED FOUR MILLION DOLLAR STOCK BUY BACK CRAIG TORRES CONTRIBUTED TO THIS ARTICLE NINE MONTHS ENDED SEPTEMBER THIRTIETH NINETEEN NINETY THREE THIRD QUARTER SEPTEMBER THIRTIETH NINETEEN NINETY THREE NOTHING ABOUT N. B. C.'S QUOTE MAD ABOUT YOU QUOTE THURSDAYS EIGHT TO EIGHT THIRTY P. M. E. S. T. SEEMED MORE UNLIKELY WHEN IT BEGAN AIRING LAST SEASON THAN THE POSSIBILITY THAT THIS FRENZIED LITTLE SITCOM WHICH BEGAN WITH A COUPLING ON A KITCHEN TABLE COULD EVOLVE INTO SERIOUS ENTERTAINMENT EVEN SO THAT IS WHAT DID HAPPEN TO THIS RICH COMEDY ABOUT A MANHATTAN COUPLE THERE IS NO EXPLAINING WHY OUTSIDE OF THE USUAL GOOD REASONS WIT WORK AND THE TRIUMPH OF TALENT OVER FORM THERE IS INDEED HARDLY AN EPISODE THAT DOESN'T UNDERSCORE HOW MUCH TALENT CAN DO FOR A STANDARD SITCOM LINE WHICH ISN'T TO SAY THAT THE SCRIPTS HERE ARE STANDARD THEY ARE BETTER THAN THAT STILL THERE'S NO DENYING HOW MUCH BETTER BETTER CAN GET WHEN THOSE TWO MASTERS OF TIMING PAUL REISER AND HELEN HUNT GET TO WORK ON THEIR LINES TO APPRECIATE WHAT THE SHOW HAS BECOME ONLY REQUIRES LOOKING AT THE LIFE THAT MR. REISER SLASH MS. HUNT AS THE TWO LEADS PAUL AND JAMIE BUCHMAN AND CYNTHIA HARRIS PAUL'S HEROICALLY TERRIFYING MOTHER MANAGE TO SQUEEZE OUT OF A TIMEWORN COMIC SITUATION JAMIE HAS FALSELY CLAIMED THAT PAUL IS AWAY WORKING ON HIS MOVIE JOB SO THAT THE COUPLE CAN AVOID HAVING DINNER WITH MOTHER BUCHMAN BUT MOTHER BUCHMAN A ROLE MS. HARRIS PLAYS WITH GRIMLY SUSTAINED PANACHE WHO IS DRIVEN BY A SUSPICION OF THE UNIVERSE IN GENERAL AND OF HER SON AND DAUGHTER IN LAW IN PARTICULAR POPS IN UNANNOUNCED AS HER KNOWING SON PREDICTED SHE WOULD THE RESULTING FRANTIC EFFORT TO HIDE PAUL'S PRESENCE IN A SMALL CITY APARTMENT HE ENDS UP TRAPPED ON THE FIRE ESCAPE MAY BE THE STUFF OF STOCK FARCE YET IN THE HANDS OF THIS TEAM IT IS FARCE THAT CAN CONVULSE THE TRICK IS THAT FOR ALL THE SITUATIONAL MADNESS THE TALENT HERE KEEPS ITS GRIP ON THE GOAL OF PORTRAYING REAL LIFE PEOPLE THE WORK GOING ON HERE IN SHORT IS A LOT MORE COMPLICATED THAN THE DELIVERY OF FUN ONE LINERS MAD ABOUT YOU MAY BE SOMEWHAT SIMILAR IN CONTENT TO THAT CROWD OF NEUROTIC FAMILY SITCOMS AIRED THE PAST TWO SEASONS BUT IT'S A WORLD APART IN SENSIBILITY IT'S NOT HARD TO IMAGINE HOW THE LOUDMOUTHED STARS OF THE MOMMIES FOR INSTANCE OR THE JUST PLAIN NOISY STAR OF THE NANNY WOULD DELIVER THOSE LINES THAT MR. REISER AND MS. HUNT MANAGE WITH SUCH FINE TUNED VENOM WHEN THEIR SUNNY SIDES AREN'T UP MS. HUNT MR. REISER AND COMPANY KNOW THE OBSESSIONS OF THE SOCIAL TYPES THEY DEPICT ONE SCENE IN ONE OF THE SERIES' BETTER EPISODES TAKES PLACE IN A HOSPITAL ROOM PAUL'S FATHER LOUIS ZORICH WHO HAS JUST SUFFERED A HEART ATTACK HAS ONLY ONE PREOCCUPATION AND ONE QUESTION FOR HIS VISITING CHILDREN WHERE DID YOU PARK BENT ON IGNORING HER DAUGHTER IN LAW MOTHER BUCHMAN HOVERS AROUND THE HOSPITAL BED AND CONCENTRATES ON ASKING HER SON QUESTIONS ON THE ORDER OF HOW IS MURRAY THE DOG THE DOG IS GOOD COMES THE EXASPERATED REPLY QUOTE HE WOULD HAVE BEEN HERE BUT HE'S RUNNING ERRANDS TODAY QUOTE MR. REISER CAN DELIVER ONE LINERS LIKE THESE SO THAT HE ACTUALLY SOUNDS LIKE AN IRRITATED SMART MOUTHED SON RATHER THAN A STAND UP COMEDIAN WHO GOT A T. V. SERIES IN THE LINE OF FILIAL DUTY AND TO COMFORT MOTHER BUCHMAN WHILE HER HUSBAND IS IN THE HOSPITAL PAUL AND JAMIE GO OFF TO SHARE A MEAL WITH HER IT IS A VISIT THAT OCCASIONS IMMENSELY COMPLICATED IF NOT ALTOGETHER INSANE EXCHANGES ON THE SUBJECTS OF TURKEY TURKEY SANDWICHES AND EATING IN GENERAL FOOD ORDERED IN MOTHER BUCHMAN SNIFFS ISN'T THE SAME AS COOKING IT'S ONLY ORDERING IN THAT'S RIGHT HER SON REPLIES WITH MURDEROUS CALM AND COOKING ISN'T THE SAME AS ORDERING IN SO COOKING I'M GUESSING WOULD BE COOKING THE SHOW ISN'T WITHOUT ITS ROUGH SPOTS AMONG THEM THE SCREECHILY OVERDRAWN CHARACTER OF JAMIE'S SISTER WHOSE APPEARANCES ARE ALL TOO FREQUENT AND WITLESS THEN THERE IS THE INDUSTRIAL QUANTITY OF SEXUAL FUN AND DARING THAT CAN GET MIGHTILY SELF CONSCIOUS SUCH FLAWS ASIDE MAD ABOUT YOU IS AN ARTFUL HOWL DESERVING OF PRAISE AND A WIDE AUDIENCE BOTH OF WHICH IT IS LIKELY TO WIN IF THERE'S ANY JUSTICE IN THE WORLD LET US PAUSE WHILE TURNING TO LESS ENTERTAINING MATTERS TO NOTE THE LATEST CONVULSION OF SELF ANALYSIS TO HIT THE MEDIA AS A RESULT OF ADMIRAL INMAN'S PRONOUNCEMENTS ON THE PRESS AS ALL THE WORLD HAS BY NOW HEARD THE PRESIDENT'S NOMINEE FOR THE POST OF SECRETARY OF DEFENSE LAST WEEK DECIDED FOR REASONS BEST KNOWN TO HIMSELF TO DROP OUT BEFORE HIS CONFIRMATION HEARINGS THE REASON ADMIRAL INMAN GAVE THAT HE HAD BEEN MADE THE TARGET OF A PLOT BY THE SENATE MINORITY LEADER AND A COLUMNIST WAS SO LUDICROUS ON ITS FACE THAT SOME NETWORK REPORTERS DELIVERING WORD OF THE ACCUSATIONS COULD NOT CONCEAL THEIR AMAZEMENT IT WAS HARD THE DAY THE NEWS BROKE TO KEEP TRACK OF THE NUMEROUS TIMES THE ADMIRAL'S REASON WAS COMPARED WITH THE ONE ROSS PEROT OFFERED FOR DROPPING OUT OF THE PRESIDENTIAL RACE AN ALLEGED PLOT TO MESS UP HIS DAUGHTER'S WEDDING STILL ALL THE WELL JUSTIFIED JOURNALISTIC INCREDULITY ADMIRAL INMAN'S CHARGES INSPIRED COULD NOT SUCCEED IN PREVENTING AN ONSLAUGHT OF HIGH MEDITATION ON THE MERITS OF THE ADMIRAL'S CHARGES ABOUT THE PRESS A GUEST ON QUOTE THE MACNEIL SLASH LEHRER NEWSHOUR QUOTE LAST WEEK WAS FOR INSTANCE MOVED TO POINT OUT THAT AS A RESULT OF ADMIRAL INMAN'S CHARGES THERE WOULD BE GROWING DEBATE ON THE MEDIA'S EXCESSES AND AUTHOR LARRY SABATO JOINED IN TO SAY THAT YES THE ADMIRAL'S CHARGES WEREN'T PERSUASIVE BUT THAT HE MADE A POINT THERE REALLY IS SOMETHING QUITE REMARKABLE ABOUT THE WAY EVEN THE MOST ABSURD CHARGES OF MEDIA CULPABILITY CAN PRODUCE INSTANT AND REVERENT ATTENTION FROM THE MEDIA ALONG WITH BOUTS OF SOLEMN SELF REFLECTION THERE IS PLENTY OF REASON GENERALLY FOR THE PRESS TO REFLECT ON ITS BEHAVIOR AND ONE OF THE THINGS IT MIGHT REFLECT ON AFTER DEALING WITH OTHERS MORE IMPORTANT IS WHY EVERY CHARGE OF MEDIA PERFIDY UTTERED BY EVERY POLITICAL CRANK WHO WANTS TO CHANGE THE SUBJECT SHOULD INVARIABLY BE CREDITED AS BEING IMPORTANT AND WORTHY OF URGENT DEBATE IT IS A QUESTION THE EARLY QUOTE CONSENSUS QUOTE EMERGING FROM THE EARTHQUAKE'S AFTERMATH WOULD HAVE US BELIEVE THAT CALIFORNIA IS NOW GOING TO A REPAIR ITS ELABORATE INFRASTRUCTURE B. KEEP ITS SUPERCHARGED SOCIAL SERVICES IN PLACE AND C. CONTINUE TO INDULGE ITS ENVIRONMENTAL AMBITIONS IT WILL DO ALL THIS THE STATE'S CONVENTIONAL THINKERS WERE SAYING LATE LAST WEEK BY INCREASING TAXES PRESUMABLY ON THE STATE'S DECLINING INCOMES SIEGFRIED AND ROY HAD BETTER COME OVER FROM VEGAS TO HELP OUT CALIFORNIA IS ALREADY AMONG THE TOP THIRD IN STATE TAX BURDENS WHETHER IT'S THE GASOLINE TAX OR A MORE GENERAL SALES TAX CAN THAT REALLY BE TOM HAYDEN PROPOSING SUCH A REGRESSIVE MEASURE OR THE PETE WILSON PREFERENCE OF A BIG BOND ISSUE A DELAYED TAX INCREASE MOST OF THE VOCAL POLITICIANS SEEM TO WANT TO HIKE SOMETHING TO PUT CALIFORNIA BACK TOGETHER AGAIN WAIT A MINUTE CALIFORNIA SHOWS THE WAY IN SO MANY THINGS AT THIS LOW STAGE IN ITS TROUBLES WE THINK IT'S TIME FOR CALIFORNIA TO GO BACK TO THE DRAWING BOARD THESE EARLIEST REPORTS SUGGEST THAT CALIFORNIA'S WORN OUT ESTABLISHMENT THINKERS ARE QUITE PREPARED TO PUSH DOWN THE SAME OLD ROAD THE ONE THAT ONLY THE OCCASIONAL TREMOR OF A TAX REVOLT SEEMS CAPABLE OF BUCKLING WE KNOW THOUGH THAT CALIFORNIA'S FAMOUS FOR HAVING SMART PEOPLE WHO THINK IN UNCONVENTIONAL WAYS UNTIL THE RECENT NATURAL AND FISCAL CATASTROPHES IT WAS THE LAND THAT BRED ENTREPRENEURS AS THE STATE EMERGES FROM THE RUBBLE WHY NOT OPEN THE PUBLIC DEBATE TO INCLUDE SOME RADICAL NOTIONS ABOUT THE STATE'S FUTURE THESE IDEAS WOULD BE BUILT AROUND THE NOTION THAT AN EMERGENCY IS A GOOD TIME FOR RECONSIDERING ASSUMPTIONS AND PERHAPS ACTUALLY LOWERING YOUR ONGOING EXPENSES WE SUGGESTED HERE THE OTHER DAY FOR EXAMPLE THAT THE UNIONS' PREVAILING WAGE AND APPRENTICESHIP GRIP ON PUBLIC WORKS BE LOOSENED TO LOWER RECONSTRUCTION COSTS BY PERHAPS TWENTY PERCENT BUT DON'T STOP THERE SCHOOLS LOS ANGELES SCHOOLS FACE AN OVERWHELMING BILL TO SHORE UP DAMAGED BUILDINGS BUT COMMERCIAL SPACE IS GOING BEGGING FOR LESSEES ALL AROUND SOUTHERN CALIFORNIA HOW ABOUT IMMEDIATELY INCREASING THE ALLOWANCE FOR INNOVATIVE CHARTER TYPE SCHOOLS THAT COULD BE SET UP IN SOME OF THESE LOCATIONS TO GET THE LEARNING RESTARTED IF THIS IS MORE THAN THE GIANT BUREAUCRATIC LOS ANGELES UNIFIED SCHOOL DISTRICT CAN HANDLE ALL THE MORE REASON TO BREAK THE DISTRICT UP RIGHT NOW INTO SMALLER PARENT AND PRINCIPAL DIRECTED UNITS SOME SYMPATHY FROM THE COURTS WOULD BE REQUIRED TO SUSPEND SOME TERMS OF EMPLOYEE UNION CONTRACTS WELFARE CALIFORNIA HAS BEEN PARING BACK ITS WELFARE BENEFITS IN RECENT YEARS AND GOVERNOR WILSON HAD PROPOSED ANOTHER SLICE BEFORE THE QUAKE BUT ITS MEDICAID BILL KEEPS SHOOTING UP CONGRESSMAN HENRY WAXMAN SHOULD BE ASKED TO CONSIDER SOME LOCAL WAIVERS FROM THE ADDED MANDATES HE'S SHEPHERDED THROUGH AT THE FEDERAL LEVEL BUT THAT WAS THEN THIS IS NOW ENVIRONMENT SAME SOLUTION CALIFORNIA WAS ALREADY BREAKING BENEATH THE CLEAN AIR AND CLEAN WATER REQUIREMENTS ISSUING FROM WASHINGTON AND SACRAMENTO AGAIN REPRESENTATIVE WAXMAN'S OFFICE IS THE PLACE TO CALL EITHER THIS IS AN EMERGENCY OR SOMEONE IN PUBLIC LIFE ISN'T SERIOUS TRANSIT CONGRESS CONTINUES TO POUR MILLIONS OF DOLLARS INTO A CENTRAL CITY SUBWAY IN LOS ANGELES WHILE CALIFORNIA DIRECTS HUGE SUMS OF ITS OWN TO OTHER SUCH TRANSIT PROJECTS WHILE UP AND RUNNING COMMUTER RAIL CAN BE A HELP IN THE CURRENT CRISIS THE MONEY FOR THE LONGER RUN AND MORE DUBIOUS PROJECTS COULD BE DIVERTED TO SHUTTLE SERVICES RUN BY ENTREPRENEURS MAKING MORE SUCH SERVICES LEGAL IN THE PRIVATE SECTOR COULD RESULT IN SHORT TERM HELP CRIME CRIME AND INCARCERATION COSTS MOUNT FASTER IN CALIFORNIA THAN IN MOST OTHER PLACES SENDING JUVENILE FELONS TO BOOT CAMPS FAR FROM THEIR TERRORIZED NEIGHBORHOODS COULD BRING BOTH IMMEDIATE AND LONG TERM RELIEF THAT WILL REQUIRE ACTION BY THE LEGISLATURE AND THE JUDGES SURELY COUNTLESS OTHER SAVINGS COULD BE HAD FROM RETHINKING THE STRICTURES THAT CALIFORNIA AND OTHER STATES HAVE PLACED ON THEMSELVES OR HAD PLACED UPON THEM THE POINT IS THAT INSTEAD OF THINKING NEW TAXES FIRST POLICYMAKERS ESPECIALLY THOSE OF THE CONSERVATIVE OPPORTUNITY SOCIETY STRIPE SHOULD BE TALKING AGGRESSIVELY NOW ABOUT MAKING A BREAK FROM PAST PRACTICE THAT COULD CHANGE PERMANENTLY THE DIMENSIONS OF CALIFORNIA'S QUANDARY IF NO ONE RAISES A SHOUT AND THE STATUS QUO REMAINS UNTOUCHABLE WE MAY BE LOOKING AT A FISCAL AND SOCIAL MESS IN CALIFORNIA WITH A FEW RESEMBLANCES TO POST SOVIET RUSSIA AT SOME POINT EVEN ILLUSIONISTS RUN OUT OF TRICKS THE LEGAL ARRIVAL IN THE U. S. OF R. U. FOUR EIGHT SIX THE CONTROVERSIAL FRENCH ABORTION PILL APPEARS TO BE GETTING CLOSE AFTER A PROTRACTED NEGOTIATION THE FRENCH PHARMACEUTICAL CONCERN ROUSSEL UCLAF S. A. AND THE NONPROFIT U. S. RESEARCH ORGANIZATION KNOWN AS THE POPULATION COUNCIL ARE SAYING THEY HOPE TO REACH A FINAL AGREEMENT IN A FEW WEEKS TO BRING R. U. FOUR EIGHT SIX TO THE U. S. FOR CLINICAL TRIALS QUOTE IF EVERYTHING GOES WELL WE HOPE THAT BY THE END OF FEBRUARY OR EARLY MARCH WE OUGHT TO HAVE AN AGREEMENT QUOTE SAYS LESTER HYMAN AN ATTORNEY WITH THE SWIDLER AND BERLIN LAW FIRM IN WASHINGTON D. C. WHICH IS REPRESENTING ROUSSEL UCLAF SANDRA WALDMAN A SPOKESWOMAN FOR THE POPULATION COUNCIL IN NEW YORK SAYS THE ORGANIZATION HOPES FOR AN AGREEMENT BY THE END OF FEBRUARY AT THE LATEST CONTRACT NEGOTIATIONS HAVE TAKEN FAR LONGER THAN EXPECTED WHEN THE PRELIMINARY AGREEMENT TO GRANT THE POPULATION COUNCIL THE U. S. RIGHTS TO R. U. FOUR EIGHT SIX WAS ANNOUNCED LAST APRIL THE DRUG WAS EXPECTED TO BE AVAILABLE FOR TESTING IN PREGNANT AMERICAN WOMEN WITHIN A FEW MONTHS BUT ROUSSEL UCLAF CONTINUED TO CONSIDER ALTERNATIVES PRESENTED BY OTHER COMPANIES AND GROUPS INTERESTED IN BRINGING THE DRUG TO THE U. S. MR. HYMAN SAYS THAT REVIEW TOOK ABOUT SIX MONTHS AND ENDED WITH THE COMPANY'S DECISION TO GO AHEAD WITH THE POPULATION COUNCIL HE SAYS EVEN NOW SOME PEOPLE ARE SKEPTICAL AN AGREEMENT WILL BE REACHED BETWEEN THE COMPANY AND THE RESEARCH GROUP I NEVER THOUGHT THIS WAS LOCKED IN CONCRETE EVERY STEP OF THE WAY THEY'RE GOING TO HAVE IMPEDIMENTS SAYS RICHARD GLASOW EDUCATION DIRECTOR OF THE NATIONAL RIGHT TO LIFE COMMITTEE EVEN R. U. FOUR EIGHT SIX ADVOCATES HAVE THEIR DOUBTS WE'RE VERY WORRIED THESE DELAYS WILL BE ENDLESS SAYS JENNIFER JACKMAN DIRECTOR OF POLICY AND RESEARCH AT THE FEMINIST MAJORITY FOUNDATION AFTER AN AGREEMENT IS REACHED THE POPULATION COUNCIL WILL BEGIN SETTING UP THE CLINICAL TRIAL WHICH IT PLANS TO USE TO SEEK FOOD AND DRUG ADMINISTRATION APPROVAL MS. WALDMAN SAYS THE SPECIFIC REGIMEN FOR THE CLINICAL TRIAL HASN'T BEEN FINALIZED MS. WALDMAN SAYS BUT THE COUNCIL EXPECTS TO TEST R. U. FOUR EIGHT SIX IN ABOUT TWO THOUSAND WOMEN SEEKING ABORTION IN THE EARLY STAGES OF PREGNANCY UP TO SIXTY THREE DAYS AFTER THE LAST MENSTRUAL CYCLE AT TEN TO TWELVE SITES ACROSS THE COUNTRY DOZENS OF CLINICS HAVE ASKED TO PARTICIPATE IN THE TRIAL BUT THE FINAL SELECTION HASN'T BEEN MADE MS. WALDMAN SAYS ONE MEDICAL CENTER THAT WANTS TO PARTICIPATE IN THE CLINICAL TRIAL IS OREGON HEALTH SCIENCES UNIVERSITY IN PORTLAND WHICH WOULD TEST ABOUT TEN WOMEN A WEEK IF IT IS SELECTED SAYS MARK NICHOLS AN ASSOCIATE PROFESSOR OF OB GYN AT THE UNIVERSITY ABOUT TWO DOZEN PHYSICIANS ACROSS OREGON HAVE VOLUNTEERED TO PARTICIPATE HE SAYS WOMEN WHO ARE JUDGED SUITABLE FOR THE TESTING WILL BE GIVEN R. U. FOUR EIGHT SIX THEN A PROSTAGLANDIN FORTY EIGHT HOURS LATER MS. WALDMAN SAYS R. U. FOUR EIGHT SIX A SYNTHETIC STEROID CAUSES THE UTERUS TO SHED ITS LINING AND THE EMBRYO THE PROSTAGLANDIN CAUSES UTERINE CONTRACTIONS TO HELP COMPLETE THE EXPULSION IN A STUDY PUBLISHED LAST YEAR FRENCH RESEARCHERS FOUND THE R. U. FOUR HUNDRED EIGHTY SIX SLASH PROSTAGLANDIN REGIMEN WAS NINETY SEVEN PERCENT EFFECTIVE IN INDUCING ABORTIONS PATIENTS WILL PROBABLY REMAIN IN THE CLINIC FOR UP TO FOUR HOURS AFTER TAKING THE PROSTAGLANDIN MS. WALDMAN SAYS IN THE FRENCH STUDY ABORTIONS OCCURRED WITHIN FOUR HOURS IN SIXTY ONE PERCENT OF THE CASES THE PATIENT WILL RETURN TO THE CLINIC TWO WEEKS LATER FOR AN EXAMINATION IF THE ABORTION HASN'T OCCURRED A SURGICAL ABORTION WILL BE PERFORMED DOCTOR NICHOLS SAYS ONCE THE PILL HAS BEEN TAKEN IT ISN'T RECOMMENDED THAT A PREGNANCY COME TO TERM THE TRIAL WON'T HAVE ANY PROBLEM FINDING WOMEN TO PARTICIPATE DOCTOR NICHOLS SAYS SINCE THE OREGON UNIVERSITY MADE PUBLIC ITS INTEREST IN PARTICIPATING IN THE TRIAL SEVERAL MONTHS AGO IT HAS RECEIVED REGULAR PHONE CALLS FROM WOMEN ASKING FOR R. U. FOUR EIGHT SIX THE DOCTOR SAYS ONE WOMAN WHO THOUGHT THE CLINICAL TRIAL WAS ALREADY UNDER WAY FLEW UP FROM CALIFORNIA IN NOVEMBER HOPING TO GET THE DRUG HE ADDS THE UNIVERSITY'S INTEREST IN R. U. FOUR EIGHT SIX HAS ALSO MADE IT A TARGET OF PROTEST FROM ANTI ABORTION GROUPS THE PRESIDENT'S OFFICE RECEIVED ONE THOUSAND FOUR HUNDRED LETTERS OF PROTEST DOCTOR NICHOLS SAYS AND ABOUT TWO HUNDRED DEMONSTRATORS PROTESTED R. U. FOUR EIGHT SIX AT THE UNIVERSITY SEVERAL MONTHS AGO DESPITE THE THREAT OF A BOYCOTT ABOUT THIRTY COMPANIES BOTH AMERICAN AND FOREIGN HAVE EXPRESSED INTEREST IN MANUFACTURING OR DISTRIBUTING THE DRUG IN THIS COUNTRY ACCORDING TO THE POPULATION COUNCIL WHICH WON'T IDENTIFY THEM THE ORGANIZATION IS WAITING UNTIL IT HAS A CONTRACT WITH ROUSSEL UCLAF BEFORE HOLDING SERIOUS DISCUSSIONS MS. WALDMAN SAYS IF THE COUNCIL AND ROUSSEL UCLAF FAIL TO REACH AN AGREEMENT SOON DEMOCRATIC REPRESENTATIVE RON WYDEN OF OREGON SAYS HE WILL TRY TO PUT PUBLIC PRESSURE ON THE PARTIES BY HOLDING A HEARING GIVEN THE FACT THAT THE TRIALS WERE SUPPOSED TO START IN NINETEEN NINETY THREE HE SAYS AMERICAN WOMEN HAVE WAITED LONG ENOUGH THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE PERCENT HIGH TWO AND ELEVEN SIXTEENTHS PERCENT LOW TWO AND SEVEN EIGHTHS PERCENT NEAR CLOSING BID THREE PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH FIVE PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH SEVEN PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT ONE OH PERCENT NINETY TO ONE HUNDRED FORTY NINE DAYS THREE POINT ONE THREE PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO OH PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FIFTY NINE DAYS THREE POINT THREE OH PERCENT TWO HUNDRED SIXTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE TWO PERCENT THIRTY DAYS THREE POINT ONE THREE PERCENT SIXTY DAYS THREE POINT ONE SIX PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE TWO PERCENT ONE MONTH TWO POINT FIVE FIVE PERCENT TWO MONTHS TWO POINT FIVE FIVE PERCENT THREE MONTHS TWO POINT SIX NINE PERCENT SIX MONTHS TWO POINT NINE THREE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH TWO PERCENT ONE MONTH THREE POINT OH SEVEN PERCENT THREE MONTHS THREE POINT TWO TWO PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH THREE PERCENT THIRTY DAYS THREE POINT OH THREE PERCENT SIXTY DAYS THREE POINT OH FIVE PERCENT NINETY DAYS THREE POINT OH EIGHT PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE TWO PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE SEVEN PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT FOUR MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND THREE EIGHTHS PERCENT SIX MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT SEVEN PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY JANUARY EIGHTEENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE NINE PERCENT THIRTEEN WEEKS THREE POINT ONE FIVE PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT SIX PERCENT SIXTY DAYS SIX POINT NINE FOUR PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT ONE PERCENT SIXTY DAYS SIX POINT NINE ONE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT OH FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN FOUR PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS WHITE HOUSE OFFICIALS SAID DEPUTY DEFENSE SECRETARY WILLIAM PERRY IS THE FRONT RUNNER TO SUCCEED LES ASPIN AS PENTAGON CHIEF SEPARATELY AN ADMINISTRATION OFFICIAL SAID BOSTON ATTORNEY DEVAL PATRICK IS EXPECTED TO BE NAMED THE JUSTICE DEPARTMENT'S ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS THE SERIOUS CONSIDERATION OF MR. PERRY FOR THE DEFENSE POST IS DRIVEN PARTLY BY THE FACT THAT MANY MEMBERS OF THE SENATE AND HOUSE ARMED SERVICES COMMITTEES FAVOR HIM MR. PERRY A MILITARY TECHNOLOGIST AND DEFENSE INTELLECTUAL HAS WON PLAUDITS ON CAPITOL HILL FOR THE CLARITY OF HIS CONGRESSIONAL TESTIMONY MR. PERRY HAS BEEN ESPECIALLY PRECISE IN LAYING OUT HIS IDEAS FOR A KIND OF QUOTE TOUGH LOVE QUOTE ACTIVIST DEFENSE INDUSTRIAL POLICY TO PRESERVE THE U. S. DEFENSE INDUSTRY WHILE ENCOURAGING IT TO SHRINK RATHER THAN MAINTAIN ITS SIZE THROUGH INCREASED EXPORTS IN ADDITION HE IS INTIMATELY FAMILIAR WITH THE FORMIDABLE DEFENSE BUDGET PROBLEMS THE ADMINISTRATION FACES IN THE COMING YEARS THOSE PROBLEMS AS WELL AS CONTINUING TENSIONS BETWEEN THE ADMINISTRATION AND THE MILITARY MIGHT DETER OTHER CANDIDATES FROM TAKING THE JOB THE DISADVANTAGES OF PROMOTING MR. PERRY TO THE PENTAGON'S TOP SLOT ARE THAT HE ISN'T A POLITICAL PLAYER AND IS ALREADY A MEMBER OF A NATIONAL SECURITY TEAM THAT CRITICS SAY NEEDS BOLSTERING MOREOVER PRESIDENT CLINTON PASSED OVER MR. PERRY FOR THE PENTAGON'S TOP JOB TWICE ALREADY WHEN HE CHOSE MR. ASPIN IN DECEMBER NINETEEN NINETY TWO AND WHEN HE PICKED RETIRED ADMIRAL BOBBY INMAN LAST MONTH MR. INMAN WITHDREW HIS NOMINATION LAST WEEK IN AN UNUSUAL NEWS CONFERENCE IN WHICH HE SAID HE WAS PUT OFF BY AMONG OTHER THINGS THE PROSPECT OF A DAILY DIET OF PRESS CRITICISM WHITE HOUSE AIDES EMPHASIZED OVER THE WEEKEND THAT PRESIDENT CLINTON HASN'T YET MADE A DECISION ON A NEW DEFENSE SECRETARY ALSO PENTAGON AIDES SAID IT IS FAR FROM CLEAR WHETHER MR. PERRY WANTS THE JOB INDEED ONE WHITE HOUSE AIDE SAID OFFICIALS EVEN WERE DISCUSSING THE POSSIBILITY OF BRINGING BACK COLIN POWELL WHO RETIRED AS CHAIRMAN OF THE JOINT CHIEFS OF STAFF FOUR MONTHS AGO HOWEVER FINDING A PLACE FOR MR. POWELL WOULD BE DIFFICULT EVEN IF HE DID AGREE TO RETURN TO PUBLIC LIFE AS A FORMER SENIOR MILITARY OFFICER HE IS BARRED BY LAW FROM BEING DEFENSE SECRETARY FOR TEN YEARS CONGRESS COULD OVERRIDE THAT PROVISION BUT THE ADMINISTRATION WOULD FACE A DEBATE FIRST IT ISN'T CLEAR WHERE ELSE MR. POWELL COULD BE FIT INTO THE NATIONAL SECURITY TEAM MR. POWELL WAS TRAVELING OVER THE WEEKEND AND COULDN'T BE REACHED FOR COMMENT ONE SIGN THAT THE ADMINISTRATION IS HEDGING ITS BETS IS THAT WHITE HOUSE COUNSELOR DAVID GERGEN DISCUSSED WITH DEFENSE SECRETARY ASPIN ON FRIDAY THE POSSIBILITY OF FORMALLY INVITING MR. ASPIN TO STAY ON AT THE PENTAGON FOR A SET PERIOD OF TIME BUT OTHERS AT THE WHITE HOUSE SAID THIS WAS UNLIKELY AND THAT THE ADMINISTRATION TRYING TO AVOID ADDITIONAL TROUBLE AT THE PENTAGON SIMPLY WANTS TO KEEP MR. ASPIN HAPPY UNTIL A SUCCESSOR IS FOUND LAST WEEK THE ADMINISTRATION SOUNDED OUT FORMER NEW HAMPSHIRE SENATOR WARREN RUDMAN A REPUBLICAN WHO SAID HE WASN'T INTERESTED IN THE JOB HAVING A REPUBLICAN RUN THE PENTAGON MIGHT HELP THE PRESIDENT MAINTAIN BIPARTISAN SUPPORT FOR BUDGET CUTS AND INSULATE HIM FROM ACCUSATIONS IN THE NINETEEN NINETY SIX ELECTION THAT HE HOLLOWED OUT THE MILITARY AS PART OF THE PROCESS OF BEGINNING ANEW THE SEARCH FOR A DEFENSE SECRETARY VICE PRESIDENT AL GORE ALSO ASKED SENATE ARMED SERVICES COMMITTEE CHAIRMAN SAM NUNN WHETHER HE WAS INTERESTED IN THE JOB AND AGAIN WAS TOLD NO SENIOR ADMINISTRATION OFFICIALS EMPHASIZED THAT THE INQUIRY WAS MORE A COURTESY THAN A JOB OFFER TO THE GEORGIA DEMOCRAT WHO HAS LED CONGRESSIONAL OPPOSITION TO DEEP CUTS IN THE DEFENSE BUDGET AND TO A WHOLESALE LIFTING OF THE BAN ON BEING OPENLY GAY IN THE MILITARY MR. PATRICK THE ATTORNEY WHO IS SAID TO BE IN LINE FOR THE CIVIL RIGHTS POST IS A PARTNER IN HILL AND BARLOW AN OLD LINE BOSTON FIRM WHERE HE REPRESENTED DESIREE WASHINGTON THE WOMAN WHOM BOXER MIKE TYSON WAS CONVICTED OF RAPING THE THIRTY SEVEN YEAR OLD MR. PATRICK ALSO DOES FUNDRAISING FOR THE N. DOUBLE A. C. P. LEGAL DEFENSE AND EDUCATIONAL FUND AS CHAIRMAN OF THE GROUP'S NEW ENGLAND COMMITTEE A CHICAGO NATIVE MR. PATRICK JOINED THE N. DOUBLE A. C. P. AS A STAFF ATTORNEY AFTER GRADUATING FROM HARVARD LAW SCHOOL AND WORKED ON VOTING RIGHTS AND CAPITAL PUNISHMENT CASES HE IS A FRIEND OF LANI GUINIER THE FORMER N. DOUBLE A. C. P. ATTORNEY WHOM PRESIDENT CLINTON LAST YEAR NOMINATED TO THE SAME JUSTICE DEPARTMENT POST THE PRESIDENT WITHDREW MS. GUINIER'S NOMINATION AFTER EXPRESSING CONCERN ABOUT LAW REVIEW ARTICLES SHE HAD WRITTEN ON WAYS OF INCREASING THE POLITICAL POWER OF BLACKS LAST MONTH DISTRICT OF COLUMBIA CORPORATION COUNSEL JOHN PAYTON WITHDREW FROM CONSIDERATION FOR THE CIVIL RIGHTS JOB BECAUSE HIS EXPECTED NOMINATION APPEARED TO FACE A PROTRACTED DELAY WILLIAM H. BOUCHER A RETIRED HEALTH CARE EXECUTIVE WAS NAMED A DIRECTOR OF THIS HEALTH CARE PROVIDER FILLING A VACANCY LEFT BY NORMAN L. PERRY WHO RESIGNED DANIEL CROWLEY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FOUNDATION HEALTH CORPORATION SAID HE EXPECTS RESULTS FOR THE FISCAL SECOND QUARTER ENDED DECEMBER THIRTY FIRST TO REFLECT QUOTE THE BEST QUARTER WE'VE HAD QUOTE SINCE GOING PUBLIC SEPARATELY FOUNDATION LOST A COURT BID TO KEEP AETNA LIFE AND CASUALTY COMPANY FROM BEING INSTALLED AS PRIME CONTRACTOR ON A HEALTH PROGRAM FOR MILITARY RETIREES ANALYSTS HAVE SAID THEY EXPECT THE MANAGED HEALTH CARE COMPANY'S EARNINGS TO BE BETWEEN NINETEEN POINT NINE MILLION DOLLARS OR SIXTY NINE CENTS A SHARE AND TWENTY THREE POINT THREE MILLION DOLLARS OR EIGHTY ONE CENTS A SHARE PENDING AUDITORS' FINAL REVIEW OF THE FIGURES MR. CROWLEY SAID WE EXPECT TO BE ABOVE THE HIGH END ESTIMATES REVENUE SHOULD RISE ABOUT FORTY FIVE PERCENT TO FOUR HUNDRED EIGHTY FOUR POINT FOUR MILLION DOLLARS MR. CROWLEY SAID IN THE YEAR EARLIER QUARTER FOUNDATION HAD NET INCOME OF NINE POINT SIX MILLION DOLLARS OR THIRTY TWO CENTS A SHARE AFTER A ONE TIME CHARGE OF ABOUT TWELVE POINT FOUR MILLION DOLLARS OR THIRTY CENTS A SHARE REVENUE TOTALED THREE HUNDRED THIRTY FOUR POINT ONE MILLION DOLLARS ANALYSTS HAVE BEEN UNCERTAIN ABOUT THE EFFECT OF FOUNDATION'S LOSS IN JULY OF A GOVERNMENT CONTRACT TO PROVIDE HEALTH CARE BENEFITS TO MILITARY RETIREES AND DEPENDENTS THE CONTRACT WENT TO AETNA BUT THE DEFENSE DEPARTMENT LAST MONTH REOPENED BIDDING AFTER A CRITICAL GOVERNMENT ACCOUNTING OFFICE REPORT MEANTIME FOUNDATION SOUGHT TO PREVENT AETNA FROM TAKING OVER ON FEBRUARY FIRST AS PRIME CONTRACTOR FOR THE CIVILIAN HEALTH AND MILITARY PROGRAM OF THE UNIFORMED SERVICES ON FRIDAY A FEDERAL COURT IN ALEXANDRIA VIRGINIA DENIED A REQUEST FOR A PRELIMINARY INJUNCTION BARRING AETNA'S INSTALLATION DURING REPROCUREMENT FOUNDATION SAID IT FILED AN APPEAL BUT LATER ADDED IN A STATEMENT THAT IT MIGHT PROCEED WITH PREVIOUSLY ANNOUNCED PLANS TO CUT ITS FOUR THOUSAND ONE HUNDRED PERSON PAYROLL BY FIVE HUNDRED TO SEVEN HUNDRED POSITIONS TO ADJUST FOR LOST BUSINESS HOWEVER A SPOKESMAN SAID OUR MAIN CONCERN WAS GETTING THE CONTRACT RE BID THIS ISSUE ISN'T DEAD YET MEANWHILE MR. CROWLEY SAID MEMBERSHIP AT FOUNDATION'S HEALTH MAINTENANCE ORGANIZATION BUSINESS GREW TO MORE THAN FIVE HUNDRED THOUSAND AS OF DECEMBER THIRTY FIRST FROM FOUR HUNDRED SEVENTY FIVE THOUSAND AT THE END OF SEPTEMBER JAPAN'S MERCHANDISE TRADE SURPLUS SWELLED TO TWELVE POINT NINE THREE BILLION DOLLARS IN DECEMBER A SIXTEEN PERCENT RISE FROM A YEAR EARLIER DEFYING EXPECTATIONS THAT THE IMBALANCE HAD FINALLY PEAKED THE DECEMBER FIGURE COMPARED WITH A SURPLUS OF ELEVEN POINT TWO OH BILLION DOLLARS A YEAR EARLIER AND A SEVEN POINT FOUR TWO BILLION DOLLAR SURPLUS IN NOVEMBER FOR ALL OF NINETEEN NINETY THREE THE SURPLUS SET A RECORD JUMPING TO ONE HUNDRED TWENTY POINT FOUR OH BILLION DOLLARS THIRTEEN PERCENT ABOVE THE PREVIOUS HIGH OF ONE HUNDRED SIX POINT SIX THREE BILLION DOLLARS IN NINETEEN NINETY TWO AT A TIME OF RISING U. S. JAPAN TRADE TENSIONS JAPAN'S SURPLUS WITH THE U. S. GREW SEVENTEEN PERCENT IN DECEMBER FROM A YEAR EARLIER FOR THE YEAR THE BILATERAL IMBALANCE WAS FIFTY POINT ONE NINE BILLION DOLLARS UP FIFTEEN PERCENT FROM THE YEAR EARLIER THAT'S THE THIRD HIGHEST LEVEL ON RECORD THE FIGURES QUOTE WERE SURPRISINGLY HIGH QUOTE SAID PETER J. MORGAN MERRILL LYNCH AND COMPANY ECONOMIST HE LIKE OTHER ECONOMISTS HAD FORECAST THAT THE STRONG YEN WAS STARTING TO CURB JAPAN'S TRADE SURPLUS A STRENGTHENING YEN MAKES JAPAN'S EXPORTS MORE EXPENSIVE WHILE MAKING IMPORTS INTO JAPAN CHEAPER STILL MOST ECONOMISTS DISMISSED FRIDAY'S REPORT AS A FLUKE ALL THE TRENDS ARE STILL IN PLACE SAID CHRIS CALDERWOOD AN ECONOMIST AT BARCLAYS DE ZOETE WEDD SECURITIES LIMITED EVEN THOUGH BARCLAYS' FORECAST FOR THE DECEMBER SURPLUS WAS LOW BY MORE THAN TEN PERCENT HE SAID THE FIRM STANDS BY ITS OVERALL PROJECTIONS OF A GRADUALLY DECREASING SURPLUS A MAIN REASON FOR THE SURPRISE WAS THE SHARP DROP IN THE PRICE OF OIL ONE OF JAPAN'S MAJOR IMPORTS WORLD OIL PRICES HAVE SOFTENED LATELY AND THE DOLLAR PRICE FOR JAPANESE BUYERS HAS DROPPED EVEN FURTHER BECAUSE OF THE STRENGTH OF THE YEN THE YEN WAS TWELVE PERCENT STRONGER IN DECEMBER THAN IN THE PREVIOUS YEAR IT'S NOT SO MUCH THAT EXPORTS WERE STRONG BUT THAT IMPORTS WERE WEAK OR JUST ABOUT FLAT MR. MORGAN SAID THE GROWTH IN THE SURPLUS WITH THE U. S. WAS FUELED IN PART BY JAPANESE ELECTRONICS COMPANIES' JACKING UP PRICES IN RESPONSE TO THE HIGH YEN ACCORDING TO DRESDNER A. B. D. SECURITIES ECONOMIST KUNJI OKUE BECAUSE JAPANESE COMPANIES ARE THE SOLE MAKERS OF MANY ELECTRONICS GOODS RAISING PRICES OF THOSE PRODUCTS DOESN'T NECESSARILY CUT SALES AND INSTEAD BOOSTS THE SIZE OF THE SURPLUS I'M EXPECTING THE YEN'S DEPRECIATION OVER THE NEXT FEW MONTHS MR. OKUE ADDED WHEN THAT HAPPENS IT WILL TRIGGER THE ELECTRONICS FIRMS TO STOP HIKING PRICES JAPAN'S ANNUAL SURPLUS WITH ASIA SURPASSED THAT WITH THE U. S. FOR THE FIRST TIME EVER A FINANCE MINISTRY OFFICIAL SAID JAPAN'S SURPLUS WITH ASIA TOTALED FIFTY THREE POINT FIVE NINE BILLION DOLLARS FOR NINETEEN NINETY THREE A TWENTY NINE PERCENT RISE ANALYSTS SAID JAPANESE COMPANIES WERE UNLOADING EXCESS INVENTORIES IN THE REGION JAPAN'S DECEMBER SURPLUS WITH THE EUROPEAN UNION INCREASED NINE POINT SEVEN PERCENT TO TWO POINT TWO TWO BILLION DOLLARS BUT IN CONTRAST TO THE SITUATION WITH THE U. S. AND ASIA THE FULL YEAR SURPLUS FELL FOR THE FIRST TIME IN THREE YEARS BY SIXTEEN PERCENT TO TWENTY SIX POINT THREE TWO BILLION DOLLARS ADJUSTING FOR SEASONAL FACTORS THE DECEMBER TRADE SURPLUS WAS EIGHT POINT EIGHT THREE BILLION DOLLARS UP TWENTY SIX PERCENT FROM NOVEMBER MARKUS WEGNER CLAD IN A TWEED JACKET FRENCH CUFFS AND SIGNET RING LOOKS MORE LIKE A TYPICAL EURO YUPPIE THAN A MENACE TO GERMANY'S POLITICAL ESTABLISHMENT YET THE ANTIPARTY PROGRAM OF HIS INFANT STATT PARTEI THE INSTEAD PARTY IS PART OF A PHENOMENON THAT IS CHANGING THE POLITICAL LANDSCAPE SINCE THE PARTY'S SURPRISE SUCCESS IN HAMBURG'S ELECTIONS LAST SEPTEMBER WHICH CATAPULTED IT INTO THE STATE'S GOVERNING COALITION INTEREST NATIONWIDE HAS SNOWBALLED MR. WEGNER CROWS THAT THERE ARE QUOTE NUMEROUS INSTEAD PARTY GROUPS GROUPLETS AND ASSOCIATIONS THAT HAVE BEEN FOUNDED ALONG WITH INTERESTED INDIVIDUALS TWO THOUSAND TO THREE THOUSAND OF THEM HAVE TURNED TO US QUOTE POLLSTERS ESTIMATE THAT TWENTY PERCENT OF THE GERMAN ELECTORATE MIGHT BE SYMPATHETIC TO THE INSTEAD PARTY PEERING THROUGH HIS TORTOISE SHELL GLASSES MR. WEGNER SAYS EARNESTLY I THINK THERE IS A CERTAIN RESPONSIBILITY NOT TO DISAPPOINT THESE PEOPLE BY PERSUADING HIS SUPPORTERS AT A WEEKEND MEETING TO BREAK OUT OF THE CONFINES OF HAMBURG AND ESTABLISH A NATIONAL PARTY MR. WEGNER HAS STARTED FULFILLING THOSE HOPES NOT BAD FOR A SEVEN MONTH OLD PARTY THAT AS HE FREELY ADMITS HAS LITTLE PROGRAM BEYOND ITS SLOGAN PROMOTING CITIZEN RESPONSIBILITY AGAINST PARTY POWER ALTHOUGH IT IS THE LARGEST MR. WEGNER'S ORGANIZATION IS ONLY ONE OF A PASSEL OF NEW PARTIES NOW BEING LAUNCHED INTO THE SURF OF GERMANY'S SUPER ELECTION YEAR WHICH WILL INCLUDE EIGHTEEN ELECTIONS FOR STATE AND LOCAL ASSEMBLIES AS WELL AS THE EUROPEAN PARLIAMENT AND THE FEDERAL BUNDESTAG THE SUDDEN VOGUE FOR ANTIESTABLISHMENT POLITICS APPEARS TO BE ANOTHER SIGN THAT THE COUNTRY IS IN THE GRIP OF WHAT MIGHT BE CALLED G. SEVEN DISEASE THE POST COLD WAR MALADY THAT HAS PUT THE MAJOR PARTIES IN THE INDUSTRIALIZED WORLD UNDER ENORMOUS PRESSURE AND CLAIMED SUCH VICTIMS AS MARGARET THATCHER GEORGE BUSH AND JAPAN'S LIBERAL DEMOCRATS SO FAR GERMANY'S AFFLICTION HAS BEEN VISIBLE IN THE PLUMMETING POPULARITY OF CHANCELLOR HELMUT KOHL'S CHRISTIAN DEMOCRATS AND TO A LESSER EXTENT THE LOW APPROVAL RATINGS FOR THE OPPOSITION SOCIAL DEMOCRATS BOTH PARTIES HAVE BEEN SEEN AS INCAPABLE OF DEALING WITH THE ECONOMIC AND SOCIAL PROBLEMS BROUGHT BY GERMAN UNITY AND RECESSION A RECENT POLL BY THE ALLENSBACH INSTITUTE SHOWS A RECORD TWO THIRDS OF GERMANS ARE DISAPPOINTED WITH THE MAJOR PARTIES UP FROM FORTY ONE PERCENT IN NINETEEN NINETY TWO THAT HAS TRANSLATED INTO A SURGE IN POPULARITY FOR SMALLER PARTIES AT THE EXTREMES OF THE POLITICAL SPECTRUM INCLUDING A CLUTCH OF FAR RIGHT PARTIES THE ENVIRONMENTAL GREENS AND THE PDS THE REFORMED COMMUNISTS IN EASTERN GERMANY APPROVAL FOR THE COMMUNISTS HAS RISEN SHARPLY WITH TWENTY TWO PERCENT IN THE EASTERN STATES SUPPORTING THEM MOST OF THE NEW POLITICAL GROUPS WHICH EXPERTS SAY NUMBER IN THE THREE FIGURES ARE FUELED BY A COMMON REVULSION AT THE SPATE OF SCANDALS THAT HAS FORCED NUMEROUS OFFICIALS AT THE STATE AND FEDERAL LEVEL INTO RETIREMENT AND BY A SENSE THAT THE MAJOR PARTIES ARE OSSIFIED THEY ARE WIDELY CRITICIZED AS BEING CLOSED OFF TO NEW BLOOD AND UNRESPONSIVE TO THE CONCERNS OF ORDINARY CITIZENS MR. WEGNER FOR EXAMPLE DECRIES THE FACT THAT GERMANY IS RULED BY A TINY LITTLE SECTOR OF SOCIETY AND THAT BEING A RELIABLE PARTY HACK COUNTS FOR MORE IN POLITICS THAN EXPERTISE HIS OWN RISE TO STARDOM BEGAN WHEN THE FORTY YEAR OLD PUBLISHER SUCCESSFULLY SUED TO HAVE HAMBURG'S NINETEEN NINETY ONE STATE ELECTION OVERTURNED BECAUSE HE HAD BEEN SNUBBED BY UNDEMOCRATIC CANDIDATE SELECTION PROCEDURES IN THE PARTY TO WHICH HE THEN BELONGED THE CHRISTIAN DEMOCRATS IT WAS IN THE RERUN IN SEPTEMBER THAT THE INSTEAD PARTY SCORED ITS SUCCESS WHEN IT ENTERED A COALITION WITH THE DOMINANT SOCIAL DEMOCRATS THE PARTY WAS TRUE TO ITS PROMISES SELECTING EXPERTS WHO WERE NOT PARTY MEMBERS FOR THE TWO CABINET POSTS IT WAS ALLOTTED MR. WEGNER'S IS NOT THE ONLY PARTY WITH NATIONAL AMBITIONS AND FORMIDABLE POTENTIAL THE LEAGUE OF FREE CITIZENS ALSO WAS LAUNCHED OVER THE WEEKEND IN WIESBADEN BY MANFRED BRUNNER A FORMER EUROPEAN COMMUNITY OFFICIAL WHO BECAME FAMOUS FOR UNSUCCESSFULLY SUING THE GERMAN GOVERNMENT TO PREVENT RATIFICATION OF THE MAASTRICHT TREATY FOR EUROPEAN UNION MR. BRUNNER PAINTS HIMSELF AS BEING BOTH MORE MARKET ORIENTED AND CLOSER TO POPULAR OPINION THAN THE MAJOR PARTIES IN GERMANY HE COMPLAINS TWO THOUSAND POLITICIANS AND TWO THOUSAND JOURNALISTS ENJOY A MONOPOLY IN POLITICAL LIFE QUOTE PEOPLE FROM THE BOURGEOIS CENTER FEEL UNREPRESENTED QUOTE HIS REPUTATION AMONG POLITICAL INSIDERS AS A SHREWD TACTICIAN SEEMS TO BE CONFIRMED BY HIS CHOICE OF ISSUES BY MAKING DISCONTENT WITH THE MAASTRICHT TREATY A CENTRAL THEME MR. BRUNNER PLANS TO CAPITALIZE ON THE FACT THAT THERE WAS LITTLE DEBATE AND NO REFERENDUM ON THE ISSUE HE SAYS THAT EIGHTY FIVE PERCENT OF ALL GERMANS ARE AGAINST THE E. C. U. THE CURRENCY THAT WOULD COME INTO CIRCULATION AFTER MONETARY UNION AND FOR HOLDING ONTO THE MARK TALK LIKE THAT CAUSES DISCOMFORT IN AN ALREADY BELEAGUERED CHANCELLORY ALTHOUGH THE COMPETING REFORMISTS MIGHT KNOCK EACH OTHER OUT BEFORE OCTOBER'S FEDERAL ELECTION MR. KOHL COULD FOR THE FIRST TIME FIND HIMSELF FACING A PROTEST PARTY ON THE RIGHT THAT ISN'T STIGMATIZED BY THE RACISM AND XENOPHOBIA OF OUTCAST PARTIES SUCH AS THE REPUBLICANS WE HAVE A SAYING IN GERMAN SAYS ONE KOHL AIDE MANY DOGS ARE THE DEATH OF THE RABBIT THE MORE LITTLE PARTIES YOU HAVE THE MORE VOTERS WILL VOTE FOR THEM THIS IS A PROBLEM FOR MR. KOHL'S CHRISTIAN DEMOCRATS THE DEFENSE DEPARTMENT HAS CANCELED PLANS TO CONDUCT A CONTROVERSIAL AIDS VACCINE TRIAL AFTER MONTHS OF WRANGLING AMONG SEVERAL FEDERAL AGENCIES OPPOSED TO THE TRIAL OF A VACCINE MADE BY MICROGENESYS INCORPORATED MERIDEN CONNECTICUT THE PENTAGON SAID IT WILL SPEND THE TWENTY MILLION DOLLARS EARMARKED FOR THE TRIAL ON VACCINE THERAPIES AND RESEARCH THAT MEANS IT WILL REOPEN THE PROCESS AND SEEK PROPOSALS FROM COMPANIES AND UNIVERSITIES ON HOW TO SPEND THE MONEY THE TRIAL OF THE MICROGENESYS VACCINE WHICH IS DESIGNED TO SLOW THE PROGRESSION OF AIDS IN PEOPLE ALREADY INFECTED WITH THE AIDS VIRUS HAS BEEN CRITICIZED BY BOTH THE NATIONAL INSTITUTES OF HEALTH AND BY THE FOOD AND DRUG ADMINISTRATION AS NARROW AND COMMERCIALLY MOTIVATED THE COMPANY HIRED FORMER SENATOR RUSSELL LONG OF LOUISIANA TO LOBBY CONGRESS FOR THE VACCINE TRIAL AMID CRITICISM FROM AIDS RESEARCHERS CONGRESS ORDERED THE TRIAL AS PART OF PENTAGON FUNDING LEGISLATION LAST AUGUST EFFORTS TO INCLUDE OTHER VACCINES IN THE TRIAL FAILED ON JANUARY FOURTH THE NEW DIRECTOR OF THE N. I. H. HAROLD VARMUS AND F. D. A. COMMISSIONER DAVID KESSLER AGAIN URGED CONGRESS IN A LETTER TO SPEND THE TWENTY MILLION DOLLARS QUOTE TO ANSWER BASIC QUESTIONS ABOUT THE IMMUNE RESPONSE QUOTE EDWARD D. MARTIN ACTING ASSISTANT DEFENSE SECRETARY SUBSEQUENTLY NOTIFIED CONGRESSIONAL COMMITTEES IN A LETTER THAT THE TRIAL WOULDN'T PROCEED MR. MARTIN ADDED THAT THE PENTAGON BELIEVES IN THE POTENTIAL OF THE MICROGENESYS VACCINE BUT WOULD SPEND THE MONEY TOWARD GENERAL RESEARCH AND WILL SEEK PARTICIPATION FROM THE TWO AGENCIES MICROGENESYS CHAIRMAN FRANKLIN VOLVOVITZ TOLD THE ASSOCIATED PRESS THAT IT WAS PREMATURE TO SAY WHETHER HIS COMPANY WOULD PARTICIPATE IN THE NEXT ROUND OF VACCINE RESEARCH ON JANUARY FOURTEENTH THE COMPANY WAS DEALT A BLOW WHEN THE WYETH AYERST UNIT OF AMERICAN HOME PRODUCTS CORPORATION INDICATED IT WOULD CEASE PROVIDING FUNDING FOR THE VACCINE DOCTOR VOLVOVITZ WHO EARLIER DECLINED COMMENT ON THE WITHDRAWAL BY AMERICAN HOME COULDN'T BE REACHED LATE FRIDAY HOWEVER MICROGENESYS DIRECTOR HARVEY SADOW TOLD THE A. P. THAT THE COMPANY WOULD SURVIVE THE LOSS A SPOKESMAN FOR CHIRON CORPORATION A BIOTECHNOLOGY COMPANY BASED IN EMERYVILLE CALIFORNIA WHICH ALSO IS WORKING ON A VACCINE SAID THIS IS THE SOLUTION THAT EVERYONE IN THE SCIENTIFIC COMMUNITY HAD ALWAYS BELIEVED IN IT'S BEEN FOURTEEN MONTHS THAT PEOPLE HAVE BEEN HAGGLING OVER THIS ADDED VACCINE DEVELOPER JACK OBIJESKI OF GENENTECH INCORPORATED IN SOUTH SAN FRANCISCO CALIFORNIA LET'S DESIGN THE BEST POSSIBLE TRIAL USING THE BEST POSSIBLE VACCINE CANDIDATES HAWAIIAN AIRLINES A UNIT OF HAL INCORPORATED SAID IT FLEW TWO HUNDRED SIXTY POINT SIX MILLION REVENUE PASSENGER MILES IN DECEMBER UP SEVEN POINT SEVEN PERCENT FROM TWO HUNDRED FORTY TWO POINT OH MILLION IN DECEMBER NINETEEN NINETY TWO ITS PLANES FLEW AT SEVENTY TWO PERCENT OF CAPACITY UP FROM SIXTY SIX PERCENT PREVIOUSLY A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE MICHAEL BAKER CORPORATION SAID IT WILL TAKE THIRTEEN MILLION DOLLARS IN AFTER TAX EXTRAORDINARY CHARGES AND AS A RESULT POST A FOURTH QUARTER LOSS THE ENGINEERING AND CONSTRUCTION CONCERN SAID MOST OF THE CHARGES RELATE TO ITS DECISION TO GET OUT OF THE MILITARY HOUSING CONSTRUCTION BUSINESS IN A LETTER TO SHAREHOLDERS CHAIRMAN RICHARD L. SHAW SAID QUOTE THE ACTIONS WE'VE TAKEN TODAY ARE MORE DISAPPOINTING TO ME THAN WORDS CAN EXPRESS QUOTE MR. SHAW ADDED THAT BAKER IS NOW POSITIONED TO PERFORM WELL IN NINETEEN NINETY FOUR AND BEYOND AND THAT THE BALANCE SHEET REMAINS STRONG WITH MORE THAN FIFTY MILLION DOLLARS OF STOCKHOLDERS' EQUITY AND MINIMAL DEBT IN THE YEAR AGO FOURTH QUARTER BAKER HAD NET INCOME OF ONE POINT SIX MILLION DOLLARS OR TWENTY CENTS A SHARE ON REVENUE OF NINETY NINE POINT SIX MILLION DOLLARS IN TRADING ON THE AMERICAN STOCK EXCHANGE FRIDAY MICHAEL BAKER CLOSED AT NINE POINT EIGHT SEVEN FIVE DOLLARS DOWN THIRTY SEVEN POINT FIVE CENTS OR THREE POINT SEVEN PERCENT BAKER SAID ITS INTELCOM SUPPORT SERVICES INCORPORATED UNIT IS EXITING MILITARY HOUSING CONSTRUCTION BECAUSE WE'VE LOST MONEY IN THAT BUSINESS IT WAS A BUSINESS WE MANAGED POORLY THE THIRTEEN MILLION DOLLARS IN TOTAL CHARGES INCLUDE A SEVEN MILLION DOLLAR ADDITION TO RESERVES FOR COMPLETION OF MILITARY HOUSING CONSTRUCTION CONTRACTS AND THE TERMINATION OF INTELCOM'S CONSTRUCTION BUSINESS THOUGH IT IS EXITING MILITARY HOUSING INTELCOM WILL CONTINUE PERFORMING OPERATIONS AND MAINTENANCE SERVICES ON MILITARY BASES WHICH IS A PROFITABLE BUSINESS A BAKER SPOKESMAN SAID THE CHARGES INCLUDE A THREE POINT ONE MILLION DOLLAR PROVISION INCLUDING TWO POINT ONE MILLION DOLLARS IN INCREASED RESERVES FOR DOUBTFUL ACCOUNTS ACCOUNTS THAT MAY NOT BE PAID AND A ONE MILLION DOLLAR ACCOUNTING ADJUSTMENT AT BAKER'S BAKER SLASH MO SERVICES UNIT WHICH PROVIDES OPERATIONS AND MAINTENANCE SERVICES FOR THE ENERGY INDUSTRY MR. SHAW SAID BAKER SLASH MO SERVICES BELIEVES WE'LL EVENTUALLY COLLECT OUR MONEY ON THE DOUBTFUL ACCOUNTS ALSO INCLUDED IN THE EXTRAORDINARY CHARGES IS A ONE POINT NINE MILLION DOLLAR PROVISION TO WRITE DOWN CERTAIN ASSETS OF BAKER'S MELLON STUART CONSTRUCTION INCORPORATED UNIT AND TO DISCONTINUE MELLON STUART'S INTERNATIONAL MARKETING EFFORTS MELLON STUART CONSTRUCTION WAS FORMED IN NINETEEN NINETY ONE WHEN BAKER ACQUIRED CERTAIN ASSETS INCLUDING EQUIPMENT FROM THE FORMER MELLON STUART COMPANY MR. SHAW SAID SOME OF THIS EQUIPMENT HAS NOT BEEN USED SINCE THE ACQUISITION AND IS NOW WORTH CONSIDERABLY LESS THAN WHEN WE PURCHASED IT BAKER HAS CLOSED MELLON STUART'S OFFICES IN TAIWAN AND ABU DHABI QUOTE WHICH HAVE ALREADY COST THE COMPANY MORE THAN ONE MILLION DOLLARS IN NINETEEN NINETY THREE QUOTE MR. STUART SAID HOWEVER THAT BAKER ISN'T ABANDONING THE INTERNATIONAL MARKET FINALLY THE CHARGES INCLUDE A ONE MILLION DOLLAR ADDITION TO CORPORATE RESERVES PRIMARILY FOR THE SALE OR CLOSING OF BAKER'S SMALL WESTON GEOPHYSICAL CORPORATION UNIT WHICH DOES NONDESTRUCTIVE TESTING TRANSCO ENERGY COMPANY SAID IT PLANS TWO HUNDRED THIRTY ONE MILLION DOLLARS IN CAPITAL EXPENDITURES IN NINETEEN NINETY FOUR UP FROM ONE HUNDRED SEVENTY MILLION DOLLARS IN NINETEEN NINETY THREE THE COMPANY SAID TWO HUNDRED TWENTY ONE MILLION DOLLARS OF THE NINETEEN NINETY FOUR EXPENDITURES WILL GO TO ITS NATURAL GAS BUSINESSES OF THAT AMOUNT ITS PIPELINE BUSINESSES TRANSCONTINENTAL GAS PIPE LINE CORPORATION AND TEXAS GAS TRANSMISSION CORPORATION WILL RECEIVE TWO HUNDRED SEVENTEEN MILLION DOLLARS AND ITS TRANSCO GAS MARKETING COMPANY AND TRANSCO GAS GATHERING COMPANY UNITS WILL GET FOUR MILLION DOLLARS THE REMAINING TEN MILLION DOLLARS WILL GO TO TRANSCO COAL COMPANY INFLATION IN THE TWELVE NATION EUROPEAN UNION INCHED UP TO A PROVISIONAL THREE POINT THREE PERCENT IN DECEMBER FROM THREE POINT TWO PERCENT IN NOVEMBER BUT IT WAS DOWN FROM THREE POINT SIX PERCENT IN DECEMBER NINETEEN NINETY TWO THE E. U.'S STATISTICS ARM EUROSTAT SAID DECEMBER INFLATION SLOWED IN SEVEN E. U. COUNTRIES AND REMAINED UNCHANGED IN TWO E. U. STATES COMPARED WITH A YEAR EARLIER THE FIGURES SHOW THAT DENMARK THE NETHERLANDS IRELAND THE U. K. FRANCE AND BELGIUM MEET THE CRITERIA FOR THE MOVE TO A SINGLE CURRENCY WHICH STIPULATES ANNUAL INFLATION SHOULDN'T BE MORE THAN ONE POINT FIVE PERCENT ABOVE THE AVERAGE OF THE THREE LOWEST RATES TWO E. U. APPLICANTS FINLAND AND NORWAY ALSO MEET THE CRITERIA WITH INFLATION RATES OF ONE POINT FIVE PERCENT AND ONE POINT EIGHT PERCENT RESPECTIVELY YOUR DECEMBER TWENTY NINTH POLITICS AND POLICY ARTICLE DESCRIBED HOW ARCHER DANIELS MIDLAND COMPANY GETS ITS WAY IN WASHINGTON THROUGH SUBTLE LOBBYING TACTICS THE ADMINISTRATION'S DECISION TO MANDATE AN EXPANDED MARKET FOR ETHANOL IS A PROPOSED RULE MAKING THAT MUST UNDERGO THE SCRUTINY OF A PUBLIC HEARING AND COMMENT PERIOD FOLLOWED BY JUDICIAL REVIEW BEFORE DETERMINING THE EXTENT NEED OR LEGALITY OF A FINAL RULE GIVEN THE FAR REACHING ECONOMIC ENVIRONMENTAL AND LEGAL ISSUES SURROUNDING THE PROPOSAL AND THE GROWING BIPARTISAN OPPOSITION TO ITS IMPLEMENTATION ITS FATE IS BY NO MEANS CERTAIN WHILE THE RULE MAKING COULD BE SEEN AS A BIG VICTORY FOR ETHANOL PRODUCERS IT ACTUALLY REPRESENTS THE LATEST IN SEVERAL RECENT DEVELOPMENTS THAT REVEAL ETHANOL'S PROLONGED MULTIMILLION DOLLAR FREE RIDE FOR YEARS ETHANOL HAS RECEIVED A FEDERAL TAX SUBSIDY CURRENTLY FIFTY FOUR CENTS TO SIXTY FOUR CENTS PER GALLON COSTING TAXPAYERS ABOUT A HALF BILLION DOLLARS A YEAR THIS TREMENDOUS FEDERAL TAX BREAK IS SWEETENED IN SOME STATES WHERE ETHANOL ENJOYS A TEN CENT TO FIFTY CENT ADDITIONAL TAX BREAK THESE SUBSIDIES WERE ANTICOMPETITIVE ENOUGH BUT NOW A MANDATED MARKET THE FOLLY OF THIS TYPE OF MARKET INTERFERENCE HAS SENT A WAKE UP CALL TO ALL THOSE THAT HAVE WORKED IN THE PAST TO KEEP A LEVEL COMPETITIVE PLAYING FIELD FOR GASOLINE ADDITIVES ALTERNATIVE FUELS OR ANY OTHER MARKETS THE LEGISLATIVE CLIMATE IS ALSO CHANGING THE PAST SPRING FOR EXAMPLE THE ETHANOL INDUSTRY LOST A MAJOR SENATE FLOOR FIGHT TO WIN AN EXEMPTION FROM THE PRESIDENT'S ENERGY SLASH TRANSPORTATION TAX SENATOR BILL BRADLEY WHO ALONG WITH SENATOR MALCOLM WALLOP LED THE EFFORT TO DEFEAT THE EXEMPTION WAS QUOTED AS SAYING THAT IT WAS QUOTE OUTRAGEOUS TO CONSIDER AN EXEMPTION FOR ETHANOL WHEN ITS SUBSIDY IS ALREADY GREATER THAN THE TOTAL SELLING PRICE OF OTHER FUELS QUOTE LAST MONTH REPRESENTATIVE HENRY WAXMAN AND SENATOR JOE LIEBERMAN GATHERED ONE HUNDRED CONGRESSIONAL SIGNATURES FOR A LETTER TO THE PRESIDENT FORCEFULLY OBJECTING TO ETHANOL'S EFFORTS TO UNDERMINE PROVISIONS OF THE CLEAN AIR ACT BY SEEKING AN ENVIRONMENTAL WAIVER FROM EMISSIONS STANDARDS THE LETTER ARGUED THAT SUCH AN EXCEPTION WOULD INCREASE SMOG IN THE NATION'S MOST POLLUTED CITIES THERE ARE A NUMBER OF REASONS WHY THE ETHANOL MANDATE IS A BAD IDEA SUCH AS ITS POTENTIAL TO DEPLETE THE HIGHWAY TRUST FUND TO INCREASE GASOLINE COST TO CONSUMERS AND TO HURT ECONOMICALLY VITAL NATURAL GAS MARKETS TOPPING THIS LIST THOUGH HAS TO BE THE GENERAL ABSURDITY OF GIVING GOVERNMENT SUBSIDIES AND NOW MANDATED MARKETS TO A MULTIMILLION DOLLAR COMPANY CONTROLLING NEARLY SEVENTY PERCENT OF AN INDUSTRY IN THE MEANTIME ENVIRONMENTAL GROUPS AND REPRESENTATIVES OF THE NATURAL GAS BASED METHANOL SLASH M. T. B. E. AND OIL INDUSTRIES AND OTHER PROMISING ALTERNATIVE FUELS WILL CONTINUE TO PRESS FOR A POLICY OF GOVERNMENT NEUTRALITY THAT ALLOWS EACH FUEL TO COMPETE ON ITS OWN MERITS POLICY MANAGEMENT SYSTEMS CORPORATION IN A FILING IN FEDERAL COURT LAST WEEK ACKNOWLEDGED THAT IT RECOGNIZED ON ITS FINANCIAL STATEMENTS SOME REVENUE FROM LICENSE AGREEMENTS BEFORE THE AGREEMENTS WERE FORMALLY SIGNED THE COMPANY IN A WRITTEN RESPONSE TO A SHAREHOLDER LAWSUIT FILED IN U. S. DISTRICT COURT IN COLUMBIA S. C. DENIED THAT IT MISREPRESENTED THE COMPANY'S FINANCIAL HEALTH IN AN EFFORT TO ACHIEVE A CONSISTENT TWENTY PERCENT GROWTH AS THE LAWSUIT CHARGES IT ALSO DENIED A SERIES OF ALLEGATIONS CHARGING THE COMPANY WITH IMPROPER ACCOUNTING PRACTICES IN APRIL POLICY MANAGEMENT DISCLOSED THAT FIRST QUARTER RESULTS WOULD FALL WELL BELOW THE COMPANY'S EXPECTATIONS BECAUSE SEVERAL CONTRACTS HADN'T CLOSED AS EXPECTED THAT NEWS PROMPTED POLICY MANAGEMENT'S SHARE PRICE TO FALL FORTY THREE PERCENT OR THIRTY SIX DOLLARS AND TWENTY FIVE CENTS IN A SINGLE DAY SINCE THEN THE ACCURACY OF THE BLYTHEWOOD S. C. COMPANY'S FINANCIAL REPORTING HAS BECOME THE SUBJECT OF FEDERAL AND INTERNAL INVESTIGATIONS IN THE COURT FILING THE COMPANY ALSO SAID THAT ON OCCASION ITS EMPLOYEES AGREED WITH CUSTOMERS THAT THE CUSTOMER WOULD RECEIVE FUTURE SERVICES IN EXCHANGE FOR PAYMENTS OF CERTAIN INVOICES IN THOSE CASES THE COMPANY SAID IT RECOGNIZED THE REVENUE FROM THE INVOICES IN QUARTERS BEFORE THE CUSTOMER RECEIVED THE SERVICES ACCORDING TO THE FILING FURTHERMORE POLICY MANAGEMENT SAID IT DISCOVERED THAT SOME OF ITS EMPLOYEES MAY HAVE AGREED WITH CUSTOMERS THAT AMOUNTS PAID TO POLICY MANAGEMENT AS LICENSE FEES AND BOOKED AS CURRENT INCOME WOULD BE REFUNDED TO THE CUSTOMER ACCORDING TO THE FILING IN THOSE CASES THE COMPANY DENIED THAT QUOTE SUCH CONDUCT WAS A REGULAR PRACTICE OF POLICY MANAGEMENT OR THAT IT WAS INTENDED TO OR IN FACT DID MISLEAD ANY INVESTORS QUOTE ACCORDING TO THE FILING A COMPANY SPOKESMAN SAID THAT THE STATEMENTS IN THE FILING ARE NOT AN ADMISSION THAT THE COMPANY BROKE ANY ACCOUNTING RULES HE DID ACKNOWLEDGE THAT SOME OF OUR EMPLOYEES WENT AGAINST COMPANY ACCOUNTING PRACTICES BUT HE SAID THESE WERE THREE OR FOUR ISOLATED PRACTICES THAT DID NOT HAVE ANY IMPACT ON THE COMPANY'S SHARE PRICE THE SPOKESMAN SAID YESTERDAY THAT AN INTERNAL AUDIT BY COOPERS AND LYBRAND WILL BE RELEASED IN MID FEBRUARY IN AUGUST POLICY MANAGEMENT DISMISSED ITS INDEPENDENT ACCOUNTANT ARTHUR ANDERSEN AND COMPANY AND HIRED COOPERS AND LYBRAND IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY THE COMPANY'S STOCK ROSE ONE DOLLAR TO THIRTY THREE DOLLARS AND TWENTY FIVE CENTS INFORMATION ABOUT THE FILING WAS NOT WIDELY KNOWN AT THE TIME THE MARKET CLOSED SEVERAL SHAREHOLDER LAWSUITS HAVE CHARGED THAT POLICY MANAGEMENT AND CERTAIN OF ITS EXECUTIVES ARTIFICIALLY INFLATED THE COMPANY'S RESULTS THE COMPANY HAS DENIED ANY WRONGDOING AND SAYS THAT ITS ACCOUNTING PRACTICES ARE SOUND THE NEW ENGLAND PATRIOTS SQUAD WAS SOLD TO A LOCAL BUSINESSMAN FOR A REPORTED ONE HUNDRED SEVENTY MILLION DOLLARS IN WHAT WAS TOUTED AS THE HIGHEST PRICE FOR A PROFESSIONAL FOOTBALL TEAM THE PREVIOUS HIGH WAS ONE HUNDRED FORTY MILLION DOLLARS FOR EXPANSION FRANCHISES AWARDED TO CHARLOTTE AND JACKSONVILLE LATE LAST YEAR NEITHER JAMES ORTHWEIN WHO SOLD THE TEAM NOR ROBERT KRAFT ITS NEW OWNER WOULD DISCLOSE A PRICE THE BOSTON GLOBE HOWEVER REPORTED SUNDAY THAT THE PRICE WAS AN ESTIMATED ONE HUNDRED SEVENTY MILLION DOLLARS ACCORDING TO SOURCES THE SALE MEANS THE TEAM WILL CONTINUE TO PLAY ITS GAMES AT FOXBORO STADIUM THE FOXBORO MASSACHUSETTS FACILITY ALSO OWNED BY MR. KRAFT APPARENTLY THE HOME FIELD ADVANTAGE PROVED TO BE AN INSURMOUNTABLE ADVANTAGE FOR OTHER BIDDERS WHICH INCLUDED A GROUP FROM HARTFORD CONNECTICUT AND ANOTHER FROM SAINT LOUIS MR. ORTHWEIN FACED THE POSSIBILITY OF A LAWSUIT IF THE PATRIOTS DID NOT FULFILL THEIR LEASE WITH MR. KRAFT TO PLAY AT FOXBORO THROUGH TWO THOUSAND TWO BUSINESSES OFTEN GRUMBLE WHEN THE GOVERNMENT SLAPS THEM WITH REGULATIONS BUT NOT SO THE SEAFOOD INDUSTRY WHICH WELCOMED NEW SAFETY PROCEDURES PROPOSED LAST WEEK BY THE FOOD AND DRUG ADMINISTRATION UNDER THE REGULATIONS SEAFOOD PROCESSORS AND IMPORTERS WOULD HAVE TO ANALYZE THE SAFETY OF THEIR OPERATIONS USING A PROCEDURE CALLED THE HAZARDOUS ANALYSIS CRITICAL CONTROL POINT SYSTEM THAT WAS FIRST DEVELOPED IN NINETEEN FIFTY NINE FOR THE SPACE PROGRAM F. D. A. INSPECTORS THEN WOULD CHECK FOR ADEQUATE SAFETY MEASURES AT VARIOUS QUOTE CRITICAL POINTS QUOTE WHERE PRODUCTS ARE MOST LIKELY TO SPOIL OR ENCOUNTER BACTERIA DONNA SHALALA HEALTH AND HUMAN SERVICES SECRETARY SAID THE NEW SYSTEMATIC APPROACH REPRESENTS A SEA CHANGE FROM THE CURRENT REGULATORY SYSTEM IN WHICH THE F. D. A. INSPECTS HIGH RISK OPERATIONS ANNUALLY AND OTHER OPERATIONS ONCE EVERY THREE YEARS WE WILL BE REVIEWING WHETHER THE SAFETY SYSTEM IS IN PLACE RATHER THAN TAKING A SNAPSHOT SHE SAID COMPLYING WITH THE REGULATIONS WOULD COST ON AVERAGE BETWEEN ONE THOUSAND DOLLARS AND FIVE THOUSAND DOLLARS PER COMPANY BUT WILL VARY FROM COMPANY TO COMPANY DEPENDING ON THEIR CURRENT SAFETY PROCEDURES MS. SHALALA SUGGESTED THE COSTS WOULD BE MODEST FOR AN INDUSTRY THAT POSTED MORE THAN THIRTY FIVE BILLION DOLLARS OF SALES IN NINETEEN NINETY TWO F. D. A. COMMISSIONER DAVID KESSLER SAID THE AGENCY WILL ENFORCE THE SAFETY PROCEDURES AGGRESSIVELY THIS IS NOT AN HONOR SYSTEM HE SAID THESE ARE REGULATIONS AND THE GOVERNMENT HAS OVERSIGHT BUT THOMAS BILLY DIRECTOR OF THE OFFICE OF SEAFOOD AT THE F. D. A. SAID THE AGENCY WON'T HAVE TO HIRE MORE INSPECTORS TO ENFORCE THE POLICY SEAFOOD INDUSTRY OFFICIALS HELPED DEVISE THE REGULATIONS AND THE INDUSTRY GENERALLY VOICED SATISFACTION WITH THE RESULT NEW UNIFORM REGULATIONS WILL REASSURE THE PUBLIC THAT SEAFOOD IS SAFE TO EAT SAID TIM SMITH EXECUTIVE DIRECTOR OF THE PACIFIC COAST OYSTER GROWERS ASSOCIATION THE TRADE ASSOCIATION FOR THE SHELLFISH INDUSTRY CONSUMER CONFIDENCE HAS BEEN ERODING HE ASSERTED HE ADDED THAT THE REGULATIONS WILL HELP IDENTIFY ILLEGAL HARVESTERS WHO HE SAID NOT ONLY SELL UNSAFE AND POOR QUALITY PRODUCTS BUT ALSO OVERSUPPLY THE MARKET AND DRIVE DOWN PRICES THE F. D. A. SAID THE RULES WOULD INCREASE SEAFOOD PRICES AT MOST ONE PERCENT IN THE FIRST YEAR AFTER THE REGULATIONS ARE ADOPTED AND ZERO POINT FIVE PERCENT ANNUALLY THEREAFTER OTHER INDUSTRY PEOPLE SAID THE NEW STANDARDS SHOULD HELP U. S. PRODUCERS IN FOREIGN MARKETS WHILE THE NEW STANDARDS APPEAR TO BE A PLUS FOR THE U. S. SEAFOOD INDUSTRY OVERALL SOME SMALL BUSINESSES MAY LOSE OUT THE F. D. A. SAID THAT COMPLIANCE COSTS MAY BE HIGH ENOUGH TO QUOTE CAUSE SOME FIRMS TO GO OUT OF BUSINESS QUOTE MOREOVER CONSUMER GROUPS AREN'T COMPLETELY SATISFIED THE F. D. A. RULES ARE A GOOD FIRST STEP BUT THEY WON'T DO ANY GOOD WITHOUT MORE MONEY IN THE F. D. A. BUDGET FOR ENFORCEMENT SAID CAROLINE SMITH DEWAAL THE DIRECTOR OF LEGAL AFFAIRS FOR PUBLIC VOICE SOME HELD THE NEW SEAFOOD RULES AS A MODEL FOR OTHER FOODS AGRICULTURE DEPARTMENT EFFORTS TO STRENGTHEN SAFETY REQUIREMENTS FOR MEAT AND POULTRY HAVE BEEN STALLED PARTLY BECAUSE OF THE RELUCTANCE OF PRODUCERS SEAFOOD SHOULD SET A GOOD PRECEDENT FOR RAW MEAT AND POULTRY SAID CAROL TUCKER FOREMAN COORDINATOR FOR THE SAFE FOOD COALITION A CONSUMER GROUP SHE PREDICTED THAT TOUGHER MEAT AND POULTRY RULES ARE NOW GOING TO MOVE F. D. A. COMMISSIONER KESSLER ESTIMATED THAT THERE ARE THIRTY THOUSAND TO SIXTY THOUSAND SEAFOOD RELATED ILLNESSES AND INJURIES EACH YEAR PER CAPITA CONSUMPTION OF SEAFOOD HAS DECREASED IN THE U. S. EVEN THOUGH TOTAL CONSUMPTION HAS INCREASED BECAUSE OF POPULATION GROWTH ACCORDING TO THE NATIONAL RESTAURANT ASSOCIATION THE F. D. A. WILL CONSIDER PUBLIC COMMENT ON THE PROPOSED REGULATIONS FOR NINETY DAYS FROM THE TIME THEY ARE PUBLISHED IN THE FEDERAL REGISTER SOMETIME THIS WEEK A PITCHED BATTLE WILL BE WAGED THIS WEEK FOR THE ALLEGIANCE OF SO CALLED INDEPENDENT STATIONS TELEVISION STATIONS NOT AFFILIATED WITH A NETWORK AT A CONVENTION OF TELEVISION PROGRAMMING EXECUTIVES IN MIAMI BEACH FOR YEARS INDEPENDENT STATIONS HAVE OPERATED IN THE SHADOW OF THE BIGGER NETWORKS FILLING THEIR PRIME TIME HOURS WITH RERUNS OF THEATRICAL MOVIES NOW HOWEVER THEY ARE BEING PRESENTED WITH AN ARRAY OF ALTERNATIVES INCLUDING BIG BUDGET SERIES WITH BIG NAME STARS AND THE CHOICE OF LINKING UP WITH ONE OF TWO NETWORKS THAT ARE TRYING TO LAUNCH DRIVING THE CHANGE IS THE DECREASING POPULARITY OF MOVIES BEFORE INDEPENDENT STATIONS GET THEM MOVIES HAVE APPEARED ON MANY OTHER OUTLETS INCLUDING PAY CABLE PAY PER VIEW HOME VIDEO AND SOMETIMES BROADCAST AND BASIC CABLE NETWORKS QUOTE BY THE TIME THEY GET TO US IT BECOMES HARDER AND HARDER QUOTE TO GET VIEWERS SAYS AL DEVANEY SENIOR VICE PRESIDENT OF WPWR T. V. IN CHICAGO WHOSE STATION AIRS MOVIES ON TUESDAYS THURSDAYS AND FRIDAYS SO THE TWO HUNDRED SEVENTY OR SO INDEPENDENTS NOT AFFILIATED WITH ONE OF THE FOUR MAJOR BROADCAST NETWORKS C. B. S. INCORPORATED GENERAL ELECTRIC COMPANY'S N. B. C. CAPITAL CITIES SLASH A. B. C. INCORPORATED OR NEWS CORPORATION'S FOX ARE LOOKING FOR ALTERNATIVES WHAT THEY WANT ARE BIG BUDGET ORIGINAL SERIES PREFERABLY ACTION ADVENTURE SHOWS THAT VIEWERS CAN'T FIND ON THE NETWORKS COINCIDENTALLY THOSE ARE THE SHOWS THAT ALSO SELL BEST OVERSEAS WHICH MEANS MORE MONEY FOR PRODUCTION BUDGETS SO PROGRAM SYNDICATORS ARE TRYING TO ACCOMMODATE WITH A RECORD DOZEN PLUS ONE HOUR SHOWS FOR PRIME TIME ALL WILL BE ON DISPLAY STARTING TOMORROW WHEN THE ANNUAL CONVENTION OF THE NATIONAL ASSOCIATION OF TELEVISION PROGRAM EXECUTIVES WHICH LINKS PROGRAM SELLERS WITH BUYERS GETS UNDERWAY MORE THAN TEN THOUSAND ATTENDEES ARE EXPECTED ONE OF THE MOST SOUGHT AFTER IS A SERIES VERSION OF LONESOME DOVE THE C. B. S. MINISERIES ABOUT THE WILD WEST THERE'S ALSO A SERIES VERSION OF THE FUTURISTIC MOVIE ROBOCOP AARON SPELLING THE CREATOR OF SUCH POPULAR NETWORK FARE AS FOX'S SOAP OPERA BEVERLY HILLS NINETY THOUSAND TWO HUNDRED TEN IS OFFERING TWO SERIES TARGETED TO FEMALE VIEWERS ROBIN'S HOODS AND HEAVEN HELP US THE SHORT LIVED A. B. C. POLICE SERIES SIRENS IS BEING BROUGHT BACK WITH NEW EPISODES AND FORMER WONDER WOMAN LYNDA CARTER IS CO STARRING IN A FRONTIER ADVENTURE HAWKEYE BUT THE STATIONS ALSO ARE BEING AGGRESSIVELY WOOED BY TIME WARNER INCORPORATED'S WARNER BROTHERS AND A JOINT VENTURE OF PARAMOUNT COMMUNICATIONS INCORPORATED AND CHRIS CRAFT INDUSTRIES INCORPORATED BOTH WANT TO CHANGE INDEPENDENTS INTO NETWORK AFFILIATES BOTH ENTITIES ARE TRYING TO CREATE NEW BROADCAST NETWORKS HOPING TO EMULATE THE SUCCESS OF THE FOURTH NETWORK FOX BUT MANY ANALYSTS BELIEVE ONLY ONE WILL GET OFF THE GROUND THE NEW NETWORKS MUST SIGN UP STATIONS REACHING AT LEAST SEVENTY PERCENT BUT PREFERABLY EIGHTY FIVE PERCENT OF THE COUNTRY IN SOME LARGE CITIES THERE ARE TWO INDEPENDENTS SO EACH NETWORK CAN SIGN UP AN AFFILIATE BUT IN SMALLER MARKETS WHERE THERE IS JUST ONE INDEPENDENT THE BIDDING HAS BECOME INTENSE SO FAR THE PARAMOUNT NETWORK WHOSE ONLY ANNOUNCED SHOW IS AN ACTION ADVENTURE STAR TREK VOYAGER HAS LINED UP TWENTY ONE STATIONS REACHING FORTY PERCENT OF THE COUNTRY INCLUDING TWO STATIONS THAT SIGNED ON LAST WEEK IT WOULD LAUNCH IN JANUARY NINETEEN NINETY FIVE THE W. B. NETWORK TO BEGIN NEXT FALL WITH THE PARTICIPATION OF TRIBUNE COMPANY'S SEVEN INDEPENDENT STATIONS HAS SIGNED UP NINETEEN REACHING FORTY TWO PERCENT OF THE COUNTRY TRIBUNE'S CHICAGO STATION W. G. N. T. V. WHICH IS CARRIED NATIONALLY VIA CABLE ALSO HAS SIGNED ON EXTENDING THE NEW NETWORK'S REACH TO SEVENTY TWO PERCENT W. B. HASN'T ANNOUNCED ANY PROGRAMS MANY STATIONS ARE HESITATING TO SIGN WITH EITHER AWAITING THE OUTCOME OF THE TAKEOVER BATTLE FOR THE PARAMOUNT NETWORK'S PARENT BARRY DILLER CHAIRMAN OF ONE BIDDER Q. V. C. NETWORK INCORPORATED HAS SAID HE DOESN'T SEE THE NEED FOR ANOTHER GENERAL INTEREST BROADCAST NETWORK QUOTE OUR POSITION IS CERTAINLY TO DELAY ANY DECISION QUOTE UNTIL PARAMOUNT'S FATE IS SETTLED SAYS L. LOWRY MAYS PRESIDENT OF CLEAR CHANNEL COMMUNICATIONS INCORPORATED WHICH CONTROLS THE PROGRAMMING OF A HANDFUL OF INDEPENDENT STATIONS IN SUCH CITIES AS MEMPHIS TENNESSEE LITTLE ROCK ARKANSAS AND TUCSON ARIZONA KERRY MCCLUGGAGE CHAIRMAN OF THE PARAMOUNT TELEVISION GROUP SAYS HE'S NOT AT ALL SURPRISED THAT STATIONS TAKE THAT DECISION VERY SERIOUSLY BUT ADDS THAT OTHERS ARE SIGNING UP THE RACE TO LAUNCH A NEW NETWORK HE SAYS CERTAINLY ISN'T OVER YET AND LIKELY WILL DRAG ON ANOTHER COUPLE MONTHS BY THIS TIME NEXT YEAR ONLY A DOZEN OF THE TWO HUNDRED SEVENTY OR SO GENERAL INTEREST INDEPENDENT STATIONS WILL BE WITHOUT A NETWORK AFFILIATION PREDICTS JAMES HEDLUND PRESIDENT OF INTV THE ASSOCIATION OF INDEPENDENT TELEVISION STATIONS ONE INTV MEMBER JOKES THAT THE NEW NAME SHOULD BE THE ASSOCIATION OF EMERGING NETWORK AFFILIATES MR. DEVANEY WHOSE WPWR HAS ALIGNED WITH THE PARAMOUNT NETWORK SAYS HE'S INTERESTED IN WHAT A NEW NETWORK CAN OFFER IN FRESH PRIME TIME PROGRAMMING BUT HE SAYS HE HAS ENOUGH SHOWS INCLUDING LONESOME DOVE THE SERIES AND THE TWO SPELLING SHOWS TO COVER OURSELVES IF THE NETWORK DOESN'T LAUNCH THE FIFTH AND SIXTH NETWORKS ARE STILL VERY MUCH IN QUESTION CONTENDS DICK KURLANDER A VICE PRESIDENT AT PETRY INCORPORATED WHICH ADVISES STATIONS ON BUYING SHOWS AND EVEN IF ONE OR BOTH LAUNCH THEY WILL START SLOWLY ON A FEW NIGHTS LEAVING STATIONS WITH PROGRAMMING HOLES TO FILL KEITH SAMPLES PRESIDENT OF RYSHER ENTERTAINMENT WHICH IS DISTRIBUTING LONESOME DOVE ROBOCOP AND THUNDER IN PARADISE SAYS HE'S NOT CONVINCED EITHER NETWORK WILL NECESSARILY SUCCEED BUT HE WELCOMES QUOTE ANYTHING THAT ENCOURAGES MORE ORIGINAL PROGRAMS IN TIME PERIODS THAT TRADITIONALLY QUOTE CARRIED RERUNS ALTHOUGH LONESOME DOVE HAS RECOGNITION WITH VIEWERS IT MUST MEET THE HIGH STANDARDS OF THE C. B. S. MINISERIES ON A SMALLER BUDGET THERE'S ALWAYS A BIG RISK TAKING SOMETHING WITH AN ESTABLISHED IDENTITY HE NOTES BUT HE ADDS THAT UNAFFILIATED STATIONS NEED SOMETHING THAT CAN BREAK THROUGH THE CLUTTER OF MULTIPLE CHANNELS AND MAKE PEOPLE AWARE THAT YOU EXIST JAPAN'S POLITICAL CHAOS TOOK ITS TOLL ON THE TOKYO STOCK MARKET SHARES TUMBLED FOUR POINT THREE PERCENT DURING MONDAY MORNING'S SESSION HURT BY FRIDAY'S UNEXPECTED REJECTION IN PARLIAMENT OF LEGISLATION TO REFORM THE NATION'S POLITICAL SYSTEM THE SHARP SELLOFF REFLECTED THE CLOUDY OUTLOOK FOR FURTHER ECONOMIC STIMULUS IN THE COUNTRY AND SOME ANALYSTS SAID THE NEW UNCERTAINTY SURROUNDING POLITICAL REFORM COULD TRIGGER CONTINUED SELLING THE MOST PESSIMISTIC OF THEM SAID THE BENCHMARK NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX COULD FALL FIFTEEN PERCENT OR MORE BEFORE THE MARKET REACHES BOTTOM STOCK PRICES HAD RISEN ON FRIDAY THE PARLIAMENTARY VOTE CAME AFTER THE MARKET CLOSED THE SELLING BEGAN AT THE START OF TRADING MONDAY AND BY THE END OF THE MORNING SESSION THE NIKKEI AVERAGE STOOD AT EIGHTEEN THOUSAND FOUR HUNDRED SEVENTY ONE POINT TWO FIVE DOWN EIGHT HUNDRED THIRTY SIX POINT ONE EIGHT POINTS FROM FRIDAY'S CLOSE THE TURNABOUT WAS ALL THE MORE WRENCHING BECAUSE PRIOR TO MONDAY THE STOCK MARKET HAD RISEN ELEVEN PERCENT SINCE THE START OF THE YEAR FOREIGN FUND MANAGERS HAD PILED IN CONFIDENT THAT JAPANESE POLITICIANS WOULD PASS THE POLITICAL REFORM LEGISLATION THUS CLEARING THE WAY FOR BILLIONS OF DOLLARS IN SORELY NEEDED ECONOMIC STIMULUS SPENDING HOW FAR THE MARKET FALLS MAY DEPEND ON WHETHER SOME KIND OF ECONOMIC STIMULUS PACKAGE CAN BE COBBLED TOGETHER SOME ANALYSTS EXPECT THE POLITICAL TURMOIL TO DELAY ANY ECONOMIC MEASURES FOR SEVERAL WEEKS QUOTE THERE'S A SEVENTY PERCENT CHANCE THERE WON'T BE A POLITICAL COMPROMISE QUOTE IN PARLIAMENT SAID SHIGERU AKIBA DIRECTOR OF YEN EQUITY TRADING AT U. B. S. SECURITIES LIMITED IF AN ELECTION IS CALLED HE SAID THE MARKET IS HEADED DOWN NOT EVERYONE WAS AS BEARISH WE'LL PROBABLY LOSE FIVE HUNDRED TO ONE THOUSAND POINTS ON THE NIKKEI AND THEN PEOPLE WILL SIT BACK AND DECIDE WHAT THEY WANT TO DO SAID MARK FAWCETT A FUND MANAGER WITH INDOSUEZ GARTMORE ASSET MANAGEMENT JAPAN LIMITED INDEED A FEW BRAVE SOULS SAID ANY DECLINE COULD PRESENT A BUYING OPPORTUNITY AN EVENT LIKE THIS REALLY TESTS THE UNDERLYING STRENGTH OR WEAKNESS OF THE MARKET DETERMINING WHETHER THE RECENT RALLY WAS JUSTIFIED BY SOMETHING MORE THAN EXPECTATIONS OF ADDITIONAL GOVERNMENT SPENDING SAID PETER TASKER ADVISER TO KLEINWORT BENSON INTERNATIONAL INCORPORATED IF THERE WERE FUNDAMENTAL FORCES DRIVING THE MARKET HIGHER SINCE THE START OF THE YEAR MR. TASKER SAID IT WON'T GO DOWN TOO MUCH AND MAYBE BOUNCE BACK BY THE END OF THE WEEK IF NOT IT WILL FALL AND KEEP GOING EVEN BEARS SUCH AS EINOSUKE YOSHINO SENIOR VICE PRESIDENT OF CAPITAL MANAGEMENT AREN'T GIVING UP ON JAPAN ALTOGETHER ALTHOUGH THE FUND MANAGER SAID QUOTE I CAN'T TAKE A CONSTRUCTIVE ATTITUDE ABOUT THE MARKET FOR TWO MONTHS QUOTE HE ADDED THAT HIS COMPANY QUOTE WILL BUY WHEN IT'S CHEAPER QUOTE HE THINKS THE NIKKEI COULD BOTTOM AT ABOUT SIXTEEN THOUSAND FOUR HUNDRED BEFORE THEN FOR WEEKS TOKYO BROKERS HAD BRAGGED OF TAKING IN MORE OVERSEAS ORDERS THAN THEY COULD PLACE IN THE WAKE OF FRIDAY'S UNEXPECTED VOTE IN PARLIAMENT THE MARKET WILL DEFINITELY MOVE LOWER BUT THERE ARE WILLING BUYERS WHO MISSED THE BOAT SAID KATHY MATSUI STRATEGIST AT BARCLAYS DE ZOETE WEDD SECURITIES JAPAN LIMITED FOREIGNERS ARE STILL POSITIVE ABOUT THE JAPANESE MARKET MR. AKIBA SAID PROVIDED THERE'S NO SNAP ELECTION AND SOME KIND OF ECONOMIC PACKAGE WE'VE EVEN SEEN A FEW FOREIGN BUYING ORDERS AT FRIDAY'S PRICES THE FOREIGN BUYING MAY COME UP AGAINST A FORMIDABLE AMOUNT OF JAPANESE SELLING HOWEVER AS COMPANIES LOOK TO THEIR MARCH THIRTY FIRST BOOK CLOSING WITH ECONOMIC STIMULUS NOW LIKELY TO BE DELAYED COMPANIES MAY RUSH TO TAKE PROFITS WHILE STOCK PRICES ARE STILL HIGH IN FRIDAY'S TRADING PRIOR TO THE PARLIAMENTARY VOTE THE NIKKEI AVERAGE ROSE ONE HUNDRED TWENTY THREE POINT FIVE ONE POINTS TO NINETEEN THOUSAND THREE HUNDRED SEVEN POINT FOUR THREE FRIDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT FOUR HUNDRED FIFTY MILLION SHARES DOWN FROM FIVE HUNDRED SIXTY TWO MILLION SHARES THURSDAY GAINERS OUTNUMBERED DECLINERS SIX HUNDRED THIRTY THREE TO FOUR HUNDRED TWENTY FOUR THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRST SECTION ISSUES WHICH ADDED NINE POINT SIX FOUR ON THURSDAY ADVANCED NINETEEN POINT ONE TWO POINTS OR ONE POINT TWO PERCENT TO ONE THOUSAND FIVE HUNDRED SIXTY NINE POINT NINE ONE LONDON SHARE PRICES ROSE ON STRONG ECONOMIC DATA AND SOME TECHNICAL TRADING WHILE FRANKFURT EQUITIES SANK UNDER PRESSURE OF PROFIT TAKING IN A NERVOUS MARKET WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED FOURTEEN POINT FIVE SIX UP ZERO POINT ONE EIGHT REFLECTING AN INCREASE IN ASIA SLASH PACIFIC MARKETS AND DROPS IN MARKETS IN THE AMERICAS AND EUROPE HEAVY CONSTRUCTION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT NINETY THREE POINT TWO ONE UP ONE POINT EIGHT TWO OR TWO PERCENT WITH SUMITOMO CONSTRUCTION COMPANY OF JAPAN POSTING A SEVEN POINT FIVE PERCENT GAIN IN ITS LOCAL CURRENCY TOY STOCKS TRAILED AT NINETY ONE POINT SEVEN EIGHT DOWN TWO POINT FOUR OH OR TWO POINT SIX PERCENT WITH ELECTRONIC ARTS INCORPORATED OF THE U. S. SLIDING FOUR POINT SEVEN PERCENT IN LOCAL CURRENCY MOST OTHER MAJOR ASIAN AND PACIFIC MARKETS FINISHED HIGHER ON FRIDAY IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED INDEX CLIMBED FOURTEEN POINT TWO POINTS TO THREE THOUSAND FOUR HUNDRED EIGHTY FOUR POINT TWO THE F. T. THIRTY INDEX GAINED NINE POINT FOUR TO TWO THOUSAND SIX HUNDRED SIXTY EIGHT POINT FIVE VOLUME TOTALED NINE HUNDRED SEVENTY NINE POINT NINE MILLION SHARES OFF FROM ONE POINT ONE ONE BILLION ON THURSDAY SHARES WERE JOLTED UPWARD BY A REPORT THAT BRITAIN'S GROSS DOMESTIC PRODUCT ROSE ZERO POINT SEVEN PERCENT IN THE FOURTH QUARTER FROM THE THIRD QUARTER AND WAS UP TWO POINT FIVE PERCENT FROM A YEAR EARLIER SLIGHTLY MORE THAN EXPECTED THE GOVERNMENT ALSO REPORTED THAT THE DECEMBER GROWTH IN THE M. FOUR MONEY SUPPLY MEASURE EXCEEDED MARKET ESTIMATES IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX OF BLUE CHIPS WHICH FELL EIGHTEEN POINT ONE EIGHT POINTS ON THURSDAY DROPPED FORTY POINT FIVE NINE POINTS INVESTORS WERE DISAPPOINTED BY THE GERMAN CENTRAL BANK'S DECISION THURSDAY TO LEAVE KEY GERMAN INTEREST RATES UNCHANGED THE MARKET WAS ALSO SKITTISH AS PLAYERS ADJUSTED POSITIONS FOR FRIDAY'S DOUBLE WITCHING THE FINAL TRADING DAY FOR OPTIONS ON STOCKS AND STOCK FUTURES OTHER EUROPEAN MARKETS WERE MIXED 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END THE NATION'S LARGEST CABLE NETWORKS ARE FINALIZING A PLAN TO ADDRESS VIOLENCE IN PROGRAMMING BY DEVELOPING A RATINGS SYSTEM AND THE USE OF AN INDEPENDENT MONITOR THE PLAN THE DETAILS OF WHICH ARE STILL BEING WORKED OUT COULD BE UNVEILED AS EARLY AS THIS WEEK WHEN THE NATIONAL CABLE TELEVISION ASSOCIATION PLANS TO BRIEF CONGRESS THE ISSUE IS SHARPLY DIVIDING CABLE FROM ITS BROADCAST NETWORK COUNTERPARTS WHO ARE ADAMANTLY OPPOSED TO A RATINGS SYSTEM THE PLAN IS A RESPONSE TO INCREASING CALLS FROM CONGRESS LED BY SENATOR PAUL SIMON D. ILLINOIS AND REPRESENTATIVE ED MARKEY D. MASSACHUSETTS TO IMPOSE REGULATIONS ON VIOLENCE IN T. V. PROGRAMMING KEY POINTS OF THE PLAN INCLUDE SETTING UP A VIOLENCE RATINGS SYSTEM FOR CABLE PROGRAMMING AND THE USE OF AN INDEPENDENT MONITOR TO REPORT ANNUALLY ON THE LEVEL OF VIOLENT CONTENT THE N. C. T. A.'S PROGRAMMING COMMITTEE ENDORSED THE USE OF A V. CHIP A TECHNOLOGY THAT WOULD ALLOW VIEWERS TO BLOCK OUT CERTAIN SHOWS CONTAINING VIOLENT SCENES QUOTE CABLE PROGRAMMERS ARE CURRENTLY PUTTING A COMPREHENSIVE VIOLENCE PLAN INTO FINAL FORM QUOTE AN N. C. T. A. SPOKESWOMAN SAID QUOTE AND WE ARE ENCOURAGING THE BROADCASTERS TO JOIN US QUOTE PARTNERS AT HILLARY RODHAM CLINTON'S FORMER LAW FIRM IN ARKANSAS SAY THEY FULLY DISCLOSED TO FEDERAL REGULATORS THEIR WORK FOR THE THRIFT AT THE CENTER OF THE WHITEWATER AFFAIR A LAWYER FOR THE ROSE LAW FIRM ALSO SAID MRS. CLINTON PLAYED A MUCH SMALLER ROLE THAN HAS BEEN REPORTED IN REPRESENTING THE THRIFT MADISON GUARANTY SAVINGS AND LOAN IN A MATTER THAT CAME BEFORE A STATE REGULATOR APPOINTED BY THEN GOVERNOR BILL CLINTON THE FEDERAL DEPOSIT INSURANCE CORPORATION HAS BEEN LOOKING INTO WHETHER THE ROSE LAW FIRM FULLY DISCLOSED ITS PRIOR RELATIONSHIP WITH MADISON WHEN THE FIRM WAS HIRED BY REGULATORS TO HANDLE A LAWSUIT THE THRIFT HAD FILED AGAINST ITS AUDITOR THE F. D. I. C. TOOK OVER MADISON IN NINETEEN EIGHTY NINE THE CLINTONS' PARTNERSHIP WITH MADISON'S OWNER IN WHITEWATER DEVELOPMENT COMPANY IS BEING INVESTIGATED BY AN INDEPENDENT COUNSEL APPOINTED BY U. S. ATTORNEY GENERAL JANET RENO AMONG THE QUESTIONS THE PROSECUTOR ROBERT FISKE JUNIOR IS LIKELY TO LOOK AT IS WHETHER MONEY FROM THE NOW DEFUNCT THRIFT WAS IMPROPERLY USED TO PAY OFF MR. CLINTON'S CAMPAIGN DEBT WHEN HE RAN FOR GOVERNOR FRIDAY IT WAS ALSO DISCLOSED THAT A FEDERAL GRAND JURY HAD SUBPOENAED RECORDS FROM CURRENT ARKANSAS GOVERNOR JIM GUY TUCKER AND OTHERS INVOLVING THE CLINTONS' ROLE IN WHITEWATER IN INTERVIEWS LAST WEEK ROSE PARTNERS SAID THAT ON SEVERAL OCCASIONS TWO PARTNERS AT THE FIRM ALERTED THRIFT OFFICIALS TO POTENTIAL CONFLICTS BECAUSE OF THEIR RELATIONSHIP WITH MADISON EACH TIME REGULATORS DECIDED THAT THE POTENTIAL CONFLICTS WEREN'T OF CONSEQUENCE THE LAWYERS SAID TYPICALLY UNDER LEGAL ETHICS RULES CONFLICTS OF INTEREST ARE MITIGATED BY FULL DISCLOSURE AND CLIENTS' APPROVAL OF THE FIRM'S CONTINUED REPRESENTATION THERE WERE THREE AREAS OF CONCERN OVER CONFLICTS ACCORDING TO ROSE PARTNERS IN THE MID NINETEEN EIGHTIES MRS. CLINTON AND ANOTHER LAWYER IN THE FIRM REPRESENTED MADISON IN TWO MATTERS BEFORE THE STATE SECURITIES COMMISSIONER ACCORDING TO ROSE PARTNERS RONALD M. CLARK AND GARY N. SPEED THAT PRIOR REPRESENTATION WAS DISCLOSED TO THE F. D. I. C. BY THEN PARTNER WEBSTER L. HUBBELL MR. HUBBELL IS NOW ASSOCIATE ATTORNEY GENERAL MR. SPEED WHO DID MOST OF THE WORK FOR THE F. D. I. C. IN THE SUIT AGAINST THE AUDITOR FROST AND COMPANY RECALLS THAT WHEN HE BECAME INVOLVED IN THE CASE HE WAS QUOTE CONCERNED QUOTE THAT THE FIRM'S PRIOR REPRESENTATION OF MADISON MIGHT CREATE AN APPEARANCE OF A CONFLICT OF INTEREST HE SAID HE RAISED THE QUESTION WITH MR. HUBBELL HE ASSURED ME LATER THAT IT WAS FULLY DISCLOSED TO THE F. D. I. C. AND THAT THERE WAS NO PROBLEM MR. SPEED SAID MR. HUBBELL COULDN'T BE REACHED FOR COMMENT CARL STERN A JUSTICE DEPARTMENT SPOKESMAN SAID THAT MR. HUBBELL HAS SAID HE ORALLY DISCLOSED THE PRIOR RELATIONSHIP TO THE F. D. I. C. MR. SPEED ALSO NOTED THAT THE LAW FIRM'S POSITION IN THE SUIT AGAINST FROST OVER AUDITS CONDUCTED IN THE MID NINETEEN EIGHTIES WAS NOT INCONSISTENT WITH ANY WORK THE LAW FIRM HAD PREVIOUSLY DONE FOR MADISON A KEY FACTOR IN ANY CONFLICT OF INTEREST ANALYSIS WE HADN'T DONE ANY REVIEW OF THE FINANCIAL STATEMENTS OF MADISON HE SAID CHARLES W. WOLFRAM A LEGAL ETHICS SPECIALIST AT CORNELL LAW SCHOOL SAID HE SEES NO PROBLEM AT ALL IN ROSE'S REPRESENTATION OF THE F. D. I. C. BECAUSE ONCE THE AGENCY HAD TAKEN OVER MADISON IT WAS NOT AN ADVERSARY OF THE S. AND L. THEY'RE JUST LIKE A TRUSTEE IN BANKRUPTCY QUOTE MR. SPEED SAID HE CONTINUED TO WORRY ABOUT POTENTIAL CONFLICTS AND TO MAKE FURTHER DISCLOSURES PARTICULARLY WORRISOME HE SAID WAS THE RELATIONSHIP OF MR. HUBBELL'S FATHER IN LAW SETH WARD WITH MADISON MR. WARD A FORMER MADISON EMPLOYEE HAD SETTLED A TANGLED COURT DISPUTE OVER SALES COMMISSIONS AND A LOAN HE HAD RECEIVED FROM THE THRIFT HIS SETTLEMENT REDUCED THE AMOUNT THAT ROSE WAS ABLE TO DEMAND FROM FROST FOR LOSSES SUSTAINED BY THE THRIFT MR. SPEED SAID THAT TO ALLAY THE FIRM'S CONFLICT CONCERNS MR. HUBBELL'S RELATIONSHIP WITH MR. WARD WAS DISCLOSED BY ROSE LAWYERS TO RESOLUTION TRUST CORPORATION ATTORNEY APRIL BRESLAW AND OTHER THRIFT REGULATORS DURING NUMEROUS CONVERSATIONS MR. SPEED SAID HE AND MR. HUBBELL HAD ANOTHER CONVERSATION WITH MS. BRESLAW ON THE SUBJECT OF CONFLICTS AFTER ROSE HIRED AN ATTORNEY WHO HAD ONCE WORKED AT MADISON SHE CONCLUDED THAT IT WAS NOT A PROBLEM HE SAID MS. BRESLAW DECLINED TO COMMENT PETER KUMPE A LITTLE ROCK LAWYER FOR THE AUDITOR FROST SAID THAT THE ROSE LAW FIRM'S CONNECTION WITH MADISON WAS NO SECRET AT ALL HE SAID THAT MS. BRESLAW WAS ACTIVELY INVOLVED IN THE LITIGATION AND THAT HE ASSUMED SHE KNEW OF ROSE'S RELATIONSHIP WITH MADISON THE F. D. I. C. HAS SAID THAT IT KNEW ABOUT THE RELATIONSHIP BETWEEN MADISON AND MR. HUBBELL'S FATHER IN LAW BUT THAT ITS LAWYERS DIDN'T RECALL BEING TOLD ABOUT ROSE'S PREVIOUS REPRESENTATION OF THE THRIFT IN A STATEMENT THE F. D. I. C. SAID IT WAS INVESTIGATING ALTHOUGH IT HAD NO REASON TO BELIEVE WE WERE MISLED ROSE PARTNERS ALSO SAID THEY DON'T BELIEVE MRS. CLINTON'S ROLE IN THE FIRM'S REPRESENTATION OF MADISON BEFORE THE STATE'S SECURITIES COMMISSIONER WAS IMPROPER WE DON'T SEE THAT HILLARY'S DONE ANYTHING UNETHICAL IN THIS SITUATION MR. CLARK SAID MRS. CLINTON WAS INVOLVED IN REPRESENTING THE THRIFT BEFORE SECURITIES COMMISSIONER BEVERLY BASSETT SCHAFFER WHO WAS APPOINTED BY THEN GOVERNOR CLINTON AT ISSUE WAS THE THRIFT'S EFFORT TO GAIN STATE REGULATORY PERMISSION TO ISSUE PREFERRED STOCK BUT PEOPLE FAMILIAR WITH THE MATTER SAID THAT RICHARD MASSEY ANOTHER ROSE ATTORNEY DID ALMOST ALL OF THE WORK ONE ROSE LAWYER SAID HE DOESN'T KNOW OF QUOTE ONE INSTANCE QUOTE IN WHICH MRS. CLINTON APPEARED BEFORE A STATE REGULATOR QUOTE AND I DON'T KNOW ANYONE THAT DOES QUOTE THE FACT THAT MS. SCHAFFER HAD COMMUNICATED WITH THE ROSE FIRM IN A LETTER ADDRESSED DEAR HILLARY HAD RAISED SUSPICIONS THAT MRS. CLINTON HAD BEEN DIRECTLY INVOLVED IN PRESSING THE MATTER BEFORE MS. SCHAFFER IN AN INTERVIEW MS. SCHAFFER SAID THAT MRS. CLINTON NEVER CAME TO ANY MEETINGS CHARLES HANDLEY AN AIDE TO MS. SCHAFFER WHO WORKED ON THE MADISON MATTERS ALSO RECALLS NO INSTANCE WHEN MRS. CLINTON DEALT WITH THE STATE SECURITIES DEPARTMENT MS. SCHAFFER SAID THAT NEITHER SHE NOR HER STAFF KNEW OF THE CLINTONS' BUSINESS DEALINGS WITH JAMES MCDOUGAL MADISON'S OWNER SHE SAID SHE MERELY CONCURRED WITH THE ROSE FIRM'S OPINION THAT THE STOCK PLAN WASN'T INCONSISTENT WITH STATE LAW NO FINAL PLAN WAS FILED WITH THE DEPARTMENT MUCH LESS APPROVED BY ME AS SECURITIES COMMISSIONER MS. SCHAFFER SAID AS EVIDENCE THAT MS. SCHAFFER WASN'T SIMPLY DOING MADISON'S OR MRS. CLINTON'S BIDDING MR. CLARK POINTS OUT THAT THE SECURITIES COMMISSIONER MADE IT DIFFICULT FOR THE THRIFT TO PURSUE A SEPARATE PLAN INVOLVING THE OPERATION OF A BROKERAGEFIRM SUBSIDIARY MADISON'S BROKER SLASH DEALER APPLICATION WAS APPROVED BY MS. SCHAFFER IN THE FALL OF NINETEEN EIGHTY FIVE BUT ONLY ON THE CONDITION THAT IT MET THE FEDERAL NET CAPITAL REQUIREMENT BY THE END OF THAT YEAR THAT DEADLINE PASSED UNMET THE ROSE FIRM HAS ALSO COME UNDER SCRUTINY BECAUSE MADISON PUT THE FIRM ON RETAINER FOR THE WORK SUPERVISED BY MRS. CLINTON THE FIRM COLLECTED TWO THOUSAND DOLLARS A MONTH FOR A FIFTEEN MONTH PERIOD MR. CLARK NOTED HOWEVER THAT THE FIRM EVENTUALLY DETERMINED OUR WORK WAS SO SPORADIC THAT WE COULDN'T JUSTIFY THE RETAINER IN JULY NINETEEN EIGHTY SIX HE SAID THE FIRM RETURNED SIX THOUSAND FOUR HUNDRED DOLLARS TO MADISON FORMER MERRILL LYNCH AND COMPANY JUNK BOND ANALYST EDWARD L. SCHERER WAS SENTENCED TO A SIX MONTH PRISON TERM AND TWO YEARS OF PROBATION FOR DEFRAUDING THE FIRM OF AS MUCH AS ONE MILLION DOLLARS IN POTENTIAL PROFIT MR. SCHERER THIRTY THREE YEARS OLD WAS CONVICTED BY A FEDERAL JURY IN MANHATTAN IN AUGUST ON CONSPIRACY WIRE FRAUD AND BRIBERY CHARGES THE SAME JURY ACQUITTED ELLIS J. STRELITZ A MERRILL CLIENT AND FRIEND OF MR. SCHERER'S OF PARTICIPATION IN THE SCHEME PROSECUTORS HAD ALLEGED THAT MR. SCHERER SOLD JUNK BONDS OWNED BY MERRILL AT CUT RATE PRICES TO MR. STRELITZ WHO THEN AGREED TO KICK BACK TWO THIRDS OF THE PROFITS ON SUBSEQUENT TRADES A THIRD MERRILL TRADER RICHARD KURSMAN ALLEGEDLY RIGGED THE PRICES ON THE BONDS HE PLEADED GUILTY TO A SINGLE COUNT OF WIRE FRAUD AND TESTIFIED AGAINST THE OTHER TWO MR. SCHERER HAD FACED MORE THAN TWO YEARS IN PRISON AND A ONE MILLION DOLLAR FINE UNDER FEDERAL SENTENCING GUIDELINES BUT JUDGE KEVIN T. DUFFY WHO IS ALSO PRESIDING OVER THE WORLD TRADE CENTER BOMBING TRIAL DERIDED THE QUOTE SILLINESS QUOTE OF THE GUIDELINES IN IMPOSING A SENTENCE BELOW THE SUGGESTED RANGE VANNA WHITE WON A JURY VERDICT OF FOUR HUNDRED THREE THOUSAND DOLLARS AGAINST SAMSUNG ELECTRONICS COMPANY AND ITS ADVERTISING AGENCY IN A CASE THAT EXPANDS CELEBRITIES' PROTECTION FROM UNAUTHORIZED USES OF THEIR LIKENESSES THE FEDERAL COURT JURY IN LOS ANGELES SAID THE SOUTH KOREAN COMPANY AND THE ADVERTISING AGENCY DEUTSCH SLASH DWORIN INCORPORATED VIOLATED MS. WHITE'S RIGHT OF PUBLICITY WITH AN ADVERTISEMENT DEPICTING A LETTER TURNING ROBOT IN A VANNA LIKE WIG AND GOWN MS. WHITE WHO IS A STAR OF THE TELEVISION SHOW WHEEL OF FORTUNE DIDN'T GIVE PERMISSION FOR THE AD WHICH BORE THE CAPTION LONGEST RUNNING GAME SHOW TWO THOUSAND TWELVE A. D. AND WHICH WAS INTENDED TO SUGGEST THE LONG LIFE OF SAMSUNG PRODUCTS MS. WHITE WON COMPENSATORY DAMAGES OF TWO HUNDRED FIVE THOUSAND DOLLARS FROM SAMSUNG AND ONE HUNDRED NINETY EIGHT THOUSAND DOLLARS FROM DEUTSCH SLASH DWORIN NEW YORK THE COMPANIES DECLINED TO COMMENT ON THE JURY'S FINDINGS DEUTSCH SLASH DWORIN SAID IT PROBABLY WON'T APPEAL IN A NOTABLE DECISION IN THE CASE LAST YEAR THE NINTH U. S. CIRCUIT COURT OF APPEALS EXPANDED ON EARLIER RULINGS THAT STOPPED ADVERTISERS FROM USING CELEBRITY FACES AND NAMES WITHOUT PERMISSION THE COURT SAID CELEBRITIES ALSO HAVE THE RIGHT TO CONTROL LIKENESSES OF THEMSELVES SUCH AS THE LETTER TURNING ROBOT PHILIP M. COWAN HEAD OF THE NEW YORK STATE BAR SECTION ON ENTERTAINMENT LAW SAID ADVERTISERS HAVE SINCE BECOME MORE CAUTIOUS ABOUT APPROPRIATING CELEBRITY IMAGES A FEDERAL JUDGE IN HOUSTON OVERTURNED TWO NEW TEXAS LAWS THAT WERE DESIGNED TO KEEP LAWYERS AND DOCTORS FROM RUSHING TO SOLICIT BUSINESS FROM ACCIDENT VICTIMS ONE OF THE MEASURES WOULD BAR LAWYERS HEALTH PROFESSIONALS AND PRIVATE INVESTIGATORS FROM WRITING TO ACCIDENT VICTIMS TO SOLICIT THEIR BUSINESS WITHIN THIRTY DAYS OF THE ACCIDENT THE PROVISION ALSO WOULD BAR WRITTEN SOLICITATIONS OF CRIMINAL DEFENDANTS WITHIN THIRTY DAYS OF THEIR ARREST THE SECOND MEASURE WOULD KEEP LAWYERS AND HEALTH PROFESSIONALS FROM OBTAINING ACCESS TO AN ACCIDENT REPORT WITHIN ONE HUNDRED EIGHTY DAYS OF AN ACCIDENT BUT INSURANCE AGENTS AND NEWS REPORTERS WOULD HAVE IMMEDIATE ACCESS THE LAWS WERE CHALLENGED BY LAWYERS CHIROPRACTORS AND ORGANIZATIONS THAT RESEARCH PUBLIC RECORDS FOR A FEE U. S. DISTRICT JUDGE DAVID HITTNER WHO IN AUGUST TEMPORARILY ENJOINED ENFORCEMENT OF THE MEASURES THIS WEEK RULED THAT THEY VIOLATED THE FIRST AMENDMENT'S PROTECTION OF COMMERCIAL SPEECH A SPOKESWOMAN FOR THE TEXAS ATTORNEY GENERAL'S OFFICE SAID SHE EXPECTED THE STATE TO APPEAL THE RULING MARY MOORE ET AL. VERSUS DAN MORALES ET AL. U. S. DISTRICT COURT HOUSTON CIV NUMBER H. NINETY THREE TO TWO THOUSAND ONE HUNDRED SEVENTY BOEING COMPANY SAID IT WILL CUT THREE THOUSAND FEWER JOBS THAN ANTICIPATED A YEAR AGO WHEN IT FORECAST IT WOULD CUT TWENTY SEVEN THOUSAND JOBS TO ACCOMMODATE A SHARP SLOWDOWN IN PRODUCTION OF COMMERCIAL AIRPLANES THE AIRPLANE MAKER WHICH HAS BEEN SCALING BACK ITS RATE OF PRODUCTION IN THE FACE OF WEAK DEMAND FOR JETS FROM AIRLINES SAID IT CUT ABOUT SEVENTEEN THOUSAND POSITIONS LAST YEAR THROUGH LAYOFFS AND ATTRITION BOEING ALREADY HAS ELIMINATED ONE THOUSAND FOUR HUNDRED FIFTY ONE JOBS THIS YEAR AND IT PLANS SEVEN THOUSAND TOTAL JOB REDUCTIONS DURING NINETEEN NINETY FOUR WITH MOST OF THOSE OCCURRING IN THE FIRST HALF OF THE YEAR WHILE EMPLOYMENT IS DECLINING SHARPLY AT BOEING FACTORIES IN THE SEATTLE AREA ABOUT ONE THOUSAND JOBS ARE BEING ADDED IN WICHITA KANSAS WHERE THE COMPANY IS PREPARING FOR EARLY PHASES OF PARTS PRODUCTION FOR ITS NEW SEVEN HUNDRED THIRTY SEVEN TO SEVEN HUNDRED MODEL THAT PLANE WHICH UNTIL RECENTLY HAS BEEN CALLED THE SEVEN HUNDRED THIRTY SEVEN X. IS AN ADVANCED REMODELED VERSION OF THE SEVEN THIRTY SEVEN AIRLINER THE COMPANY HAS BEEN SELLING FOR TWENTY FIVE YEARS IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE BOEING SHARES CLOSED AT FORTY FIVE POINT ONE TWO FIVE DOLLARS UP SIXTY TWO POINT FIVE CENTS N. B. C. ENTERTAINMENT PRESIDENT WARREN LITTLEFIELD SIGNED A NEW THREE YEAR CONTRACT WITH THE NETWORK ENDING A YEAR OF SPECULATION THAT HE WAS ON HIS WAY OUT MANY HAD EXPECTED MR. LITTLEFIELD TO LEAVE THE GENERAL ELECTRIC COMPANY UNIT AFTER DON OHLMEYER WAS NAMED N. B. C.'S WEST COAST PRESIDENT LAST FEBRUARY ADDING A LAYER OF MANAGEMENT BETWEEN MR. LITTLEFIELD AND N. B. C. PRESIDENT ROBERT WRIGHT N. B. C. IS IN THIRD PLACE AMONG THE THREE MAJOR BROADCAST NETWORKS THIS SEASON ALTHOUGH IT PERFORMED WELL AMONG ADVERTISER SOUGHT AFTER DEMOGRAPHIC GROUPS IN THE IMPORTANT NOVEMBER RATINGS PERIOD AND HAS A HIT IN ITS NEW SITCOM QUOTE FRASIER QUOTE TREASURY SECRETARY LLOYD BENTSEN WARNED RUSSIA THAT THE RECEIPT OF INTERNATIONAL AID TO SUPPORT ITS ECONOMIC REFORM EFFORTS DEPENDS ON MOSCOW'S SUCCESS IN CURBING INFLATION QUOTE I'M TROUBLED BY SOME OF THE INDICATIONS WE ARE GETTING OUT OF RUSSIA QUOTE MR. BENTSEN SAID HERE WHERE HE STOPPED TO PRESS JAPAN TO MOVE FORWARD IN OPENING ITS MARKETS TO U. S. PRODUCTS THERE IS NO WAY TO HAVE A HEALTHY ECONOMY WITHOUT CONTROLLING INFLATION AND NO WAY TO SLOW INFLATION WITHOUT CONTROLLING BUDGET DEFICITS AND CREDIT GROWTH DURING THE MOSCOW SUMMIT TEN DAYS AGO MR. BENTSEN PRAISED PRESIDENT BORIS YELTSIN'S COMMITMENT TO ECONOMIC REFORM SINCE THEN SOME LEADING REFORMERS HAVE QUIT THE CABINET AND PARLIAMENTARY LEADERS SAY THEY INTEND TO SLOW EFFORTS TO CONTROL INFLATION END SUBSIDIES TO INEFFICIENT INDUSTRIES AND MOVE TO A MARKET ECONOMY SEPARATELY THE GOVERNMENTS THAT HAVE LENT ABOUT FIFTY FOUR BILLION DOLLARS TO RUSSIA AGREED TO EXTEND A DEBT RESTRUCTURING ARRANGEMENT THEY REACHED LAST YEAR THAT AGREEMENT RESCHEDULED ABOUT FIFTEEN BILLION DOLLARS OF INTEREST AND PRINCIPAL PAYMENTS THAT WERE DUE LAST YEAR ALTHOUGH LAST YEAR'S AGREEMENT HAS EXPIRED THE TERMS WILL REMAIN IN PLACE AT LEAST UNTIL APRIL THIS YEAR MOSCOW IS SUPPOSED TO PAY ABOUT TEN BILLION DOLLARS BUT THAT WILL POSSIBLY BE DELAYED IN LATER NEGOTIATIONS REGULATORS' ABILITY TO KEEP TRACK OF THE GOVERNMENT SECURITIES MARKET WOULD BE IMPROVED BY A PROPOSAL TO GIVE THEM GREATER ACCESS TO CLEARING INFORMATION UNDER THE PROPOSAL PUBLISHED BY THE SECURITIES AND EXCHANGE COMMISSION THE GOVERNMENT SECURITIES CLEARING CORPORATION WOULD BE AUTHORIZED TO RELEASE TRADING DATA TO THE FEDERAL RESERVE BANK OF NEW YORK AND OTHER AGENCIES THAT HELP TO OVERSEE TRADING OF GOVERNMENT SECURITIES THE REGULATORS COULD USE THE DATA FOR MARKET SURVEILLANCE BUT WOULD HAVE TO KEEP INFORMATION ABOUT SPECIFIC FIRMS CONFIDENTIAL THE INITIATIVE EMBODIES AN AGREEMENT ENTERED INTO BY THE GSCC AND THE NEW YORK FED THE GSCC A CLEARING AGENCY REGISTERED WITH THE S. E. C. OFFERS A CENTRALIZED AUTOMATED SYSTEM FOR THE CLEARANCE AND SETTLEMENT OF TRADES IN TREASURY SECURITIES A REPORT ISSUED BY REGULATORS AFTER THE SALOMON BROTHERS INCORPORATED TREASURY BOND SCANDAL SAID THE S. E. C. BELIEVES THAT A PARTIAL AUDIT TRAIL COULD BE CONSTRUCTED BY COMBINING TRANSACTION INFORMATION FROM GSCC WITH AVAILABLE PRICE AND VOLUME INFORMATION THE PROPOSAL MUST BE APPROVED BY THE S. E. C. BEFORE IT CAN TAKE EFFECT THE AGENCY ASKED INTERESTED PARTIES TO COMMENT BY FEBRUARY TENTH AFTER NEARLY TEN YEARS IN PARLIAMENT ABDUL WAHAB DARAWSHE FELT THE MOMENT HAD ARRIVED FOR THE APPOINTMENT OF ISRAEL'S FIRST ARAB CABINET MINISTER HE WANTED TO BE THAT PERSON HIS TIMING SEEMED PROPITIOUS PRIME MINISTER YITZHAK RABIN HAD SAID HE WANTED TO EXPAND HIS NARROWLY BASED RULING COALITION TO SHORE UP SUPPORT FOR THE PEACE ACCORD WITH THE PALESTINE LIBERATION ORGANIZATION IF MR. RABIN WAS WILLING TO SHAKE HANDS WITH YASSER ARAFAT MR. DARAWSHE REASONED WHY SHOULDN'T HE BE READY TO ACCEPT ABDUL WAHAB DARAWSHE A LOYAL ISRAELI CITIZEN INTO HIS GOVERNMENT BUT MR. RABIN HAS SO FAR REBUFFED THE OVERTURE EVEN THOUGH THE GOVERNMENT DEPENDS HEAVILY ON ARAB PARTIES TO WIN KEY KNESSET VOTES MR. DARAWSHE SAYS HE IS TOLD THAT THE ISRAELI PUBLIC ISN'T READY TO ACCEPT ARABS AS FULL FLEDGED PARTNERS MR. DARAWSHE NOW DECLARES THAT IF HE ISN'T ACCEPTED BY THE END OF JANUARY HIS DEMOCRATIC ARAB PARTY AND ITS TWO SEATS IN THE ONE HUNDRED TWENTY SEAT KNESSET WILL JOIN THE OPPOSITION THE IDEA OF PEACE BETWEEN ISRAEL AND PALESTINIANS MAY BE IN THE AIR BUT ISRAEL'S EIGHT HUNDRED THOUSAND ARAB CITIZENS ALMOST ALL LIVING WITHIN ISRAEL PROPER NOT IN THE OCCUPIED TERRITORIES STILL FEEL LIKE SECOND CLASS CITIZENS SAYS MR. DARAWSHE QUOTE I'M NOT SURE THIS GOVERNMENT OR ANY OTHER GOVERNMENT WILL EVER GIVE US REAL EQUALITY QUOTE ISRAEL'S ARAB CITIZENS WHO MAKE UP SIXTEEN PERCENT OF THE ISRAELI POPULATION OVERWHELMINGLY SAW THE ISRAEL P. L. O. AGREEMENT AS LEADING TO SWEEPING IMPROVEMENTS IN THEIR LIVES THE JEWISH MAJORITY WOULD NO LONGER HAVE ANY REASON TO DOUBT THEIR LOYALTY OR TO FEEL THREATENED BY THEIR IDENTIFICATION WITH THE P. L. O. DISCRIMINATION IN JOBS HOUSING AND EDUCATION WHICH HAVE EXISTED SINCE ISRAEL'S FOUNDING IN NINETEEN FORTY EIGHT SHOULD NO LONGER BE JUSTIFIED ISRAELI ARAB LEADERS ARGUED YET THE PROSPECT OF PEACE INSTEAD OF CLOSING ECONOMIC SOCIAL AND EDUCATIONAL GAPS BETWEEN ISRAELI JEWS AND ARABS IS THREATENING TO WIDEN THEM ARAB TOWNS CONTINUE TO LAG SEVERELY IN ECONOMIC DEVELOPMENT AND HAVE HIGHER UNEMPLOYMENT ACCORDING TO SIKKUY A JERUSALEM BASED ORGANIZATION PROMOTING EQUAL OPPORTUNITY THE GOVERNMENT HASN'T INTEGRATED ARABS INTO THE CIVIL SERVICE AND MANY GOVERNMENT OFFICES HAVE NO ARABS ON STAFF WHILE THIRTY ONE PERCENT OF JEWISH STUDENTS WENT ON TO HIGHER EDUCATION IN NINETEEN NINETY TWO ONLY TEN PERCENT OF NON JEWISH ISRAELI STUDENTS DID NOW A SCRAMBLE BY ISRAELI JEWS TO GO INTO BUSINESS WITH PALESTINIANS IN THE OCCUPIED WEST BANK AND GAZA STRIP IS STIRRING BITTERNESS AMONG ISRAELI ARABS WHO HAVEN'T BEEN ABLE TO ATTRACT SIGNIFICANT INVESTMENT TO THEIR OWN COMMUNITIES TRUE EQUALITY WON'T BE POSSIBLE IN ANY CASE AS LONG AS OLD HOSTILITIES AND PREJUDICES LINGER ON BOTH SIDES ATALIA DROR A LIBERAL ISRAELI JEW WHO WORKS AT A SUBURBAN TEL AVIV NEWSPAPER SHOP SAYS SHE IS A STRONG BELIEVER IN EQUALITY YET THE FEAR OF ARABS IS A FEELING THAT'S HARD TO ERASE IT COMES FROM DEEP INSIDE MY BELLY SHE SAYS AFTER ALL THEY DID ATTACK US AND TRY TO DESTROY US AMONG ISRAELI ARABS THERE IS AMBIVALENCE ABOUT THEIR IDENTITY IN A COUNTRY THAT DEFINES ITSELF FOREMOST AS A JEWISH STATE THEIR ALLEGIANCE TO ISRAEL ALSO INFURIATES SOME PALESTINIANS IN THE OCCUPIED TERRITORIES THEY SAY THEY WANT EQUALITY WITHIN ISRAEL THEY SAY THEY WANT DEMOCRACY BUT THEY'LL NEVER GET IT SAYS GHASSAN KABHA A PALESTINIAN ACTIVIST IN BARTA'A A BORDER TOWN THAT SPANS BOTH ISRAEL AND THE WEST BANK LOOK AT THE MIDDLE EASTERN JEWS AND THE EUROPEAN JEWS WHO LIVE IN ISRAEL HE SAYS SEATED IN HIS COUSIN'S STONE HOUSE ON THE WEST BANK SIDE OF TOWN QUOTE THERE HASN'T BEEN EQUALITY BETWEEN THEM SINCE THE STATE BEGAN AND IF THERE'S NO EQUALITY BETWEEN THE JEWS WHY DO THE ARABS THINK THERE WILL EVER BE EQUALITY BETWEEN THE ARABS AND THE JEWS IN FACT EVEN BEFORE THE ISRAEL P. L. O. ACCORD SIGNIFICANT PROGRESS HAD BEEN MADE IN CLOSING SOME GAPS BUDGETS EARMARKED FOR THE ARAB SECTOR HAVE MORE THAN DOUBLED SINCE THE LABOR PARTY CAME TO POWER EIGHTEEN MONTHS AGO THE FIRST ISRAELI ARAB WAS NAMED TO HEAD A GOVERNMENT OWNED COMPANY AND THE GOVERNMENT HAS PROMISED TO EQUALIZE CHILD CARE ALLOWANCES FOR ARAB AND JEWISH FAMILIES YET BECAUSE MARKED DIFFERENCES REMAIN ISRAELI ARABS FEAR THAT THE GOVERNMENT DOESN'T INTEND TO GRANT THEM CIVIL EQUALITY THE PEACE ACCORD CONTENDS ELIE REKHESS OF TEL AVIV UNIVERSITY IS RELEGATING ISRAELI ARABS TO THE MARGINS OF BOTH THE PALESTINIAN MAINSTREAM AND ISRAELI SOCIETY AND THEY WOULD BE HARDER HIT BY THE ECONOMIC RESTRUCTURING REQUIRED BY PEACE ARGUE AMIRAM GONEN AND RASSEM KHAMAISI RESEARCHERS AT THE FLOERSHEIMER INSTITUTE FOR POLICY STUDIES IN JERUSALEM FOREIGN INVESTMENT IN ISRAEL FOLLOWING PEACE WOULD BE CONCENTRATED IN CAPITALINTENSIVE INDUSTRIES IN METROPOLITAN AREAS THEY SAY BUT MOST ISRAELI ARABS LIVE IN RURAL AREAS ON THE PERIPHERY OF THE COUNTRY AND ISRAELI JEWS MORE THAN ISRAELI ARABS HAVE ACQUIRED THE SKILLS TO TAKE ADVANTAGE OF OPPORTUNITIES EXPECTED IN AREAS LIKE TECHNOLOGY AND SCIENCE LABOR INTENSIVE INDUSTRIES THAT EMPLOY MANY ISRAELI ARABS ON THE OTHER HAND WOULD FIND IT HARD TO COMPETE WITH CHEAPER PALESTINIAN LABOR ACROSS THE BORDER AND SOME MAY END UP SHUTTING DOWN OR RELOCATING TO THE WEST BANK WORSENING UNEMPLOYMENT SOME ARABS AND JEWS IN ISRAEL WILL BENEFIT ECONOMICALLY BY PEACE BUT THE JEWS WILL BENEFIT MUCH MORE SAYS MR. GONEN SOME ARABS AND JEWS WILL BE HURT ECONOMICALLY BY PEACE BUT THE ARABS WILL BE HURT MUCH MORE FOR MUSTAFA ABU RAIA AN ISRAELI ARAB WHO IS A FORMER HEAD OF THE SAKHNIN LOCAL COUNCIL IN THE GALILEE THE PEACE PROCESS HAS BROUGHT SOME WELCOME CHANGES HE SAYS A COURT CASE AGAINST HIM FOR MAKING STATEMENTS SUPPORTING THE PALESTINIAN INTIFADA WAS DROPPED BY THE ISRAELI AUTHORITIES AFTER THE P. L. O. PACT WAS SIGNED VILLAGERS HAVE BEEN ALLOWED TO CARRY PALESTINIAN FLAGS DURING DEMONSTRATIONS SUPPORTING THE PEACE PROCESS BUT HE WORRIES THAT PEACE AND THE EVENTUAL RELINQUISHING OF JEWISH SETTLEMENTS IN THE WEST BANK AND GAZA WOULD CAUSE GOVERNMENT ATTENTION TO TURN INSTEAD TO JUDAIZING THE GALILEE THE AREA IN NORTHERN ISRAEL WHERE ISRAELI ARABS ARE MOST CONCENTRATED DURING THE NINETEEN FORTY EIGHT WAR SAKHNIN ELDERS MET WITH THE APPROACHING JEWISH ARMY AND OFFERED TO TURN OVER THEIR ARMS AND REMAIN NEUTRAL IF JEWISH SOLDIERS WOULD REFRAIN FROM ATTACKING THE VILLAGE A DEAL WAS STRUCK AND THE VILLAGERS SAT OUT THE WAR AT HOME THE VILLAGE UNTOUCHED BUT OVER THE YEARS THE GOVERNMENT BUILT NEW JEWISH TOWNS ON LAND THAT WAS ONCE PART OF SAKHNIN OUTSIDE MR. ABU RAIA'S HOME STANDS A MEMORIAL TO SIX PEOPLE KILLED DURING A NINETEEN SEVENTY SIX PROTEST AGAINST GOVERNMENT CONFISCATION OF ARAB LAND THE MEMORIAL A BOXY SCULPTURE OF PEOPLE CROUCHING AND SHIELDING THEMSELVES WITH THEIR ARMS IS A CONSTANT REMINDER OF THE IMPORTANCE VILLAGERS ATTACH TO THE LAND AND OF THEIR FEARS OF LOSING IT QUOTE WE LOOK AT THE JEWISH TOWNS AROUND US THE GOVERNMENT OFFERS FINANCIAL INDUCEMENTS TO ENCOURAGE JEWS TO MOVE THERE OR TO SET UP COMPANIES THEY MAKE SURE THAT THE JEWISH TOWNS HAVE PHONES WATER SEWAGE AND ELECTRICITY UNLIKE MANY OF THE ARAB VILLAGES IN THE GALILEE WE WANT THE SAME RIGHTS AND BENEFITS THE JEWS RECEIVE SAYS MR. ABU RAIA I DON'T MIND IF THEY WANT TO PUT NEW IMMIGRANTS IN THE GALILEE BUT I WANT TO MAKE SURE THAT THERE IS GOING TO BE ENOUGH LAND FOR US TO LIVE HERE FIFTY YEARS FROM NOW AS WELL SAKHNIN RESIDENTS ARE ESPECIALLY WORRIED ABOUT A PROPOSAL BY THE JEWISH AGENCY A NONPROFIT GROUP THAT WORKS CLOSELY WITH THE GOVERNMENT FOR TWENTY SIX FUTURE JEWISH SETTLEMENTS IN THE GALILEE TO THEM IT CONFIRMS SUSPICIONS THAT ONCE THE OCCUPIED TERRITORIES ARE RETURNED JEWISH SETTLEMENT IN NORTHERN ISRAEL WILL EXPAND ONE DAY THERE WILL BE NO MORE ISRAELIS IN THE OCCUPIED TERRITORIES THEY'LL LEAVE THEIR HOMES AND COME TO THE GALILEE WORRIES HAMAD KHALAILY AN EX KNESSET MEMBER BENNY SHILOH HEAD OF THE MINORITIES DESK AT THE PRIME MINISTER'S OFFICE DISMISSES THIS NOTION AND HE SAYS THE GOVERNMENT IS TRYING TO CLOSE THE EDUCATIONAL AND SOCIAL GAPS BETWEEN ARAB AND JEWISH COMMUNITIES ARABS HERE ARE GOING TO BENEFIT FROM PEACE MR. SHILOH CONTENDS QUOTE IF ISRAEL CAN SPEND LESS MONEY ON DEFENSE THERE WILL BE MORE MONEY TO SPEND ON IMPROVING CITIES AND TOWNS AND THIS WILL INCLUDE ARAB TOWNS ON EQUAL TERMS WITH JEWISH ONES QUOTE HE ADDS WE ARE COMMITTED TO ENSURING THAT ARABS WILL HAVE EQUAL JOB OPPORTUNITIES NOW AND WHEN THERE IS PEACE AZMI BISHARA AN ISRAELI ARAB WHO HEADS THE PHILOSOPHY DEPARTMENT AT BIR ZEIT UNIVERSITY IN THE WEST BANK SAYS ISRAELI ARABS ARE BEGINNING TO REALIZE THAT EVEN IF A PALESTINIAN STATE EMERGES THEIR STATUS IN ISRAEL WON'T CHANGE SO LONG AS ISRAEL CONTINUES TO DEFINE ITSELF AS A JEWISH STATE HE BELIEVES TERRITORIAL AUTONOMY FOR ISRAELI ARABS IS OUT OF THE QUESTION SINCE JEWS AND ARABS ARE GEOGRAPHICALLY INTERTWINED BUT ARABS SHOULD AT LEAST HAVE CULTURAL AUTONOMY HE SAYS OVERSEEING THE BOOKS THEIR SCHOOLS USE AND THE WAY ARAB HISTORY IS TAUGHT FOR EXAMPLE WHY SHOULD A ROMANIAN JEW DECIDE WHAT ARABIC LITERATURE I STUDY IN SCHOOL WHY SHOULD JEWS RUN THE ISRAELI ARABIC TELEVISION WHY SHOULDN'T THERE BE AN ARAB UNIVERSITY IN NAZARETH OFFERING COURSES TAUGHT IN ARABIC MR. BISHARA ASKS SUCH ARGUMENTS FRIGHTEN MANY ISRAELI JEWS WHO FEAR CULTURAL AUTONOMY WOULD BE THE FIRST STEP TOWARD ISRAELI ARAB SECESSION AND DESTRUCTION OF ISRAEL FROM WITHIN AT A TEL AVIV UNIVERSITY PANEL DISCUSSION ON PEACE'S EFFECTS THE MOSTLY JEWISH AUDIENCE COULD BARELY CONTROL ITSELF WHEN AN ISRAELI ARAB POSED THE IDEA ONE MAN STOOD UP AND DENOUNCED THE SPEAKER DRAWING HEARTY APPLAUSE FROM OTHERS MR. DARAWSHE THE KNESSET MEMBER SAYS THAT WHILE ISRAELI ARABS DON'T SEEK TERRITORIAL AUTONOMY THE NEW POLITICAL SITUATION HAS MADE ISRAEL SEEM EVEN MORE MARKEDLY A JEWISH ZIONIST STATE HE PLANS TO OFFERS A BILL TO EXPAND ISRAEL'S DEFINITION CURRENTLY THE STATE OF THE JEWISH PEOPLE TO ADD AND THE STATE OF ALL ITS CITIZENS REGARDLESS OF NATIONAL OR RELIGIOUS AFFILIATION THE PROPOSAL IS A TEST HE SAYS FOR HOW SERIOUSLY ISRAEL WANTS THE ARAB CITIZENS TO INTEGRATE COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE EASTERN EUROPEAN RETAILERS POSTED MODEST SALES INCREASES IN NINETEEN NINETY THREE AS CONSUMERS SHRUGGED OFF RECESSIONARY WOES AND SPENT MONEY ON SUCH PRODUCTS AS BEER CIGARETTES AND SOFT DRINKS YET WITH THE REGION STILL FACING ECONOMIC AND SOCIAL CHANGE THE BUYING BINGE ISN'T ENOUGH TO MAKE RETAILERS REJOICE IN HUNGARY POLAND CZECH REPUBLIC AND SLOVAKIA A SURVEY FOR THE WALL STREET JOURNAL EUROPE BY MARKET RESEARCH FIRM A. C. NIELSEN FOUND THAT FOOD RETAILERS IN ALL FOUR COUNTRIES THE MOST ECONOMICALLY ADVANCED IN THE FORMER EAST BLOC ENTERED NINETEEN NINETY FOUR WITH NAGGING DOUBTS ABOUT THE PROSPECT OF SUSTAINED SALES GROWTH HUNGARIAN AND POLISH RETAILERS WERE ALMOST EVENLY SPLIT BETWEEN THOSE WHO PREDICT A DOWNTURN AND THOSE WHO FORESEE FLAT SALES ONLY ABOUT ONE THIRD EXPECT SALES TO IMPROVE BUT IN CZECH REPUBLIC AND SLOVAKIA ONLY FOURTEEN PERCENT OF THE RETAILERS SURVEYED BELIEVE SALES WILL WORSEN THE REST ARE EQUALLY DIVIDED BETWEEN OPTIMISM AND STAGNATION THERE'S NO APPARENT BLOC MENTALITY WHEN RETAILERS IN EASTERN EUROPE ARE ASKED WHY THEY ARE LESS THAN ENTHUSIATIC ABOUT SALES IN GENERAL THEY SAY THE HARD TIMES CHARACTERISTIC OF TRANSITION ECONOMIES CONTRIBUTE TO THE UNCERTAIN OUTLOOK BUT THE SURVEY SUGGESTS THE REASONS VARY FROM COUNTRY TO COUNTRY HUNGARIAN RETAILERS ARE MORE CONCERNED ABOUT THEIR COMPANY'S FINANCIAL PROBLEMS THAN ARE THOSE IN OTHER COUNTRIES POLISH RETAILERS TELL POLLSTERS THAT CUSTOMERS WITHOUT SUFFICIENT PURCHASING POWER ARE THEIR MAIN WORRY FEWER HUNGARIAN AND CZECH RETAILERS REPORT HESITANT CONSUMERS ON THE HORIZON HUNGARIANS ARE CONFIDENT THAT EVEN COST CONSCIOUS SHOPPERS CAN BE COAXED TO SPEND IF PRICES AND STORE LOCATIONS ARE RIGHT THAT'S WHY MAJOR FOREIGN FOOD RETAILERS IN HUNGARY ARE RAPIDLY EXPANDING INTO NO FRILLS DISCOUNT OUTLETS TO MEET THE NEEDS OF CUSTOMERS WHO ARE QUICKLY LEARNING WHAT VALUE FOR MONEY MEANS QUOTE SMALL AND MEDIUM SIZED HARD DISCOUNT STORES ON THE EDGE OF TOWN WERE MISSING FROM THE HUNGARIAN MARKET UNTIL WE CAME ALONG QUOTE SAYS ISTVAN KAVAS MANAGING DIRECTOR OF DUNA FUSZERT A WHOLESALER TURNED RETAILER IN WHICH BELGIUM'S DELHAIZE QUOTE LE LION QUOTE S. A. HAS A MAJORITY STAKE DUNA OPERATES TWENTY FOUR PROFI SHOPS IN HUNGARY EIGHTEEN OPENED IN NINETEEN NINETY THREE ALONE HOPES TO HAVE BETWEEN ONE HUNDRED FIFTY AND TWO HUNDRED OUTLETS BY THE END OF THE DECADE AUSTRIA'S JULIUS MEINL WHICH SAW SALES RISE ABOUT FIFTEEN PERCENT AT ITS ONE HUNDRED ELEVEN STORES IN HUNGARY JUMPED INTO THE DISCOUNT TRADE LAST YEAR WITH FOUR STORES GERMANY'S TENGELMANN IS ALSO PUSHING INTO THE MARKET WITH ITS DISCOUNT PLUS CHAIN IN HUNGARY IN DIRECT COMPETITION WITH PROFI IT'S EASY TO SEE WHY PROFI AND PLUS STORES ARE POPULAR THEY'RE NO NONSENSE OPERATIONS THAT OFFER A WIDE VARIETY OF PRODUCTS AT PRICES TEN PERCENT TO FIFTEEN PERCENT LOWER THAN IN DOWNTOWN MEGASTORES ON A RECENT AFTERNOON THERE'S SHOPPING CART GRIDLOCK IN A CLEAN BRIGHT PLUS OUTLET ON THE OUTSKIRTS OF BUDAPEST NEAR A LARGE HOUSING PROJECT I COME HERE BECAUSE I LIVE IN THE NEIGHBORHOOD IT'S CHEAP AND IT'S FRIENDLY SAYS LAJOS DOMOKOS A FIFTY FIVE YEAR OLD TAXI DRIVER MAYBE RICH PEOPLE WHO LIVE UP IN THE BUDA HILLS DON'T CHECK PRICE TAGS BUT I DO HE ADDS SUCH SHOPS ARE A WORLD AWAY FROM HUNGARY'S OLD STATE RUN CHAINS THAT ARE ALMOST EXTINCT IN ONE DARK AND DINGY STATE SHOP IN DOWNTOWN BUDAPEST DUSTY CANNED GOODS ARE DISPLAYED IN A DIRTY PLASTIC BASKET AND THE EDGES ON SLICED MEATS ARE CURLING AN ELDERLY CUSTOMER IS ON HER KNEES TRYING TO EXTRICATE A BOTTLE OF COCA COLA FROM A PACKING CRATE ON THE FLOOR NO EMPLOYEE BOTHERS TO HELP HER COMPARE THIS WITH MEINL'S STORES IN HUNGARY WITH THEIR WIDE AISLES MODERN REFRIGERATED DISPLAYS AND MEAT AND CHEESE COUNTERS SOME EVEN HAVE SALAD BARS WE MAY NOT HAVE THE LOWEST PRICES BUT WE OFFER A GREAT ASSORTMENT OF PRODUCTS SERVICE AND A FRIENDLY ATMOSPHERE WHICH CUSTOMERS REALLY APPRECIATE SAYS KORNEL KISS MEINL'S GENERAL DIRECTOR FOR FINANCE SNOB APPEAL DOES APPEAR TO BE PART OF THE MEINL IMAGE SAYS TIM KNOX A RETAIL ANALYST AND DIRECTOR OF STRATEGIC CONSULTING GROUP IN BUDAPEST FOR MANY PEOPLE A MEINL SHOPPING BAG IS CONSIDERED A STATUS SYMBOL RETAILERS IN CZECH REPUBLIC ARE ALSO STARTING TO TREAT CUSTOMERS LIKE KINGS STORES HAVE BEEN CLEANED UP THEY STAY OPEN LATER AND ON WEEKENDS AND THEY TRY TO DRAW SHOPPERS WITH PROMOTIONS SUCH AS COUPONS SENT THROUGH THE MAIL THE KRONE DEPARTMENT STORE ON PRAGUE'S WENCESLAS SQUARE IS TYPICAL OF THE TREND TOWARD SERVICE AND VARIETY I BUY FOOD HERE EVEN IF IT'S MORE EXPENSIVE BECAUSE I LIKE TO TRY NEW THINGS SAYS SIXTY NINE YEAR OLD ESTER MUDRANINCOVA QUOTE I'M HAPPY WHEN I COME HERE I FEEL LIKE I'M IN PARADISE SUCH WESTERN STYLE JOY OF SHOPPING EXPERIENCES HAVEN'T REALLY TAKEN HOLD IN POLAND YET SMALL MOM AND POP SHOPS AND STREET KIOSKS AS WELL AS BUSTLING FARMERS' MARKETS ARE WHERE MOST POLES BUY FOOD THERE ARE SOME SELF SERVICE SHOPS BUT MANY PRIVATIZED GROCERY STORES ARE STILL RUN BY SURLY SHOPKEEPERS THE RETAIL EXPANSION SEEN IN HUNGARY IS HAMPERED IN POLAND BY A LACK OF AVAILABLE SPACE HOWEVER THIS HASN'T STOPPED CHAINS LIKE NORWAY'S REMA ONE THOUSAND WHICH HAS A BIG MODERN STORE UNDER WARSAW'S CENTRAL STATION FROM TAKING THE PLUNGE REMA ONE THOUSAND CAN BE MORE EXPENSIVE ON SOME PRODUCTS BUT SHOPPERS ARE ENTHUSIASTIC ESPECIALLY WHEN FREE SAMPLES ARE HANDED OUT BUT IN GENERAL POLISH RETAILERS REMAIN SCEPTICAL ABOUT CONSUMER CONFIDENCE AND AREN'T RUSHING INTO COSTLY RENOVATIONS ONLY SEVENTEEN PERCENT OF POLISH RETAILERS SURVEYED SAY THEY'LL INVEST IN IMPROVEMENTS COMPARED WITH FORTY TWO PERCENT IN CZECH REPUBLIC AND SLOVAKIA CATERPILLAR INCORPORATED'S RECOVERY ACCELERATED AS BRISK SALES OF CONSTRUCTION EQUIPMENT IN THE U. S. LED TO STRONGER THAN EXPECTED SALES AND EARNINGS IN THE FOURTH QUARTER THE REPORT BOLSTERED THE CONTENTION BY SOME MONEY MANAGERS AND ANALYSTS THAT CATERPILLAR OF PEORIA ILLINOIS HAS BEGUN WHAT COULD BE A LONG PERIOD OF IMPROVING RESULTS THAT VIEW HAS HELPED SEND CATERPILLAR SHARES TO NEW HIGHS IN RECENT MONTHS AFTER YEARS OF UNDERPERFORMING THE OVERALL MARKET BUT FRIDAY'S REPORT WAS EVEN BETTER THAN THE OPTIMISTS EXPECTED IT CAUSED ANALYSTS TO BOOST THEIR PROFIT FORECASTS AND THE STOCK TO SURGE TO YET ANOTHER HIGH CATERPILLAR SHARES CLOSED AT NINETY EIGHT POINT SIX TWO FIVE DOLLARS UP FOUR POINT SIX TWO FIVE DOLLARS OR FIVE PERCENT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PROVIDING A BOOST TO THE DOW JONES INDUSTRIAL AVERAGE CATERPILLAR WHICH IS ALSO SEEING INCREASED DEMAND FOR ITS BIG DIESEL ENGINES SAID IT EARNED ONE HUNDRED NINETEEN MILLION DOLLARS OR ONE DOLLAR AND SEVENTEEN CENTS A SHARE FOR THE QUARTER THAT INCLUDED A TWENTY NINE MILLION DOLLAR CHARGE FOR EARLY RETIREMENT OF DEBT BEFORE THE CHARGE THE COMPANY EARNED ONE HUNDRED FORTY EIGHT MILLION DOLLARS OR ONE DOLLAR AND FORTY SIX CENTS A SHARE FOR THE LATEST QUARTER THAT'S WELL ABOVE SECURITIES ANALYSTS' ESTIMATES WHICH WERE A MEAN OF EIGHTY SIX CENTS A SHARE ACCORDING TO FIRST CALL A UNIT OF THOMSON FINANCIAL SERVICES IN THE YEAR EARLIER QUARTER CATERPILLAR HAD A LOSS OF TWO MILLION DOLLARS OR TWO CENTS A SHARE JOHN MCGINTY OF C. S. FIRST BOSTON SAID THE REPORT SHOWS THAT CATERPILLAR IS QUOTE INCREDIBLY PROFITABLE AND IF THEY GET TOP LINE SALES GROWTH EARNINGS WILL COME TUMBLING ON DOWN QUOTE TO THE BOTTOM LINE THE SALES PERFORMANCE WAS AS SURPRISING AS THE EARNINGS TURNAROUND BOOSTED BY THE REBOUNDING U. S. BUSINESS AND PRICE INCREASES SALES JUMPED SIXTEEN PERCENT TO THREE POINT OH SEVEN BILLION DOLLARS FROM TWO POINT SIX FOUR BILLION DOLLARS A YEAR EARLIER MANY ANALYSTS HAD EXPECTED A SINGLE DIGIT INCREASE IN SALES FOR NINETEEN NINETY THREE CATERPILLAR EARNED SIX HUNDRED FIFTY TWO MILLION DOLLARS OR SIX DOLLARS AND FORTY THREE CENTS A SHARE INCLUDING A GAIN OF THREE HUNDRED MILLION DOLLARS FROM A SETTLEMENT WITH THE INTERNAL REVENUE SERVICE A YEAR EARLIER THE COMPANY HAD A LOSS OF TWO POINT FOUR FOUR BILLION DOLLARS OR TWENTY FOUR DOLLARS AND TWELVE CENTS A SHARE INCLUDING A CHARGE OF TWO POINT TWO TWO BILLION DOLLARS FOR NEW ACCOUNTING STANDARDS SALES ROSE FOURTEEN PERCENT TO ELEVEN POINT TWO FOUR BILLION DOLLARS FROM NINE POINT EIGHT FOUR BILLION DOLLARS BARRY BANNISTER AN ANALYST AT S. G. WARBURG SAID HE'LL PROBABLY INCREASE HIS RECENT ESTIMATES THAT CATERPILLAR WOULD EARN FOUR DOLLARS AND NINETY FOUR CENTS A SHARE IN NINETEEN NINETY FOUR AND EIGHT DOLLARS AND TWO CENTS A SHARE IN NINETEEN NINETY FIVE I BELIEVE THE OUTLOOK FOR SUSTAINED EARNINGS GROWTH FOR SEVERAL YEARS IS IN PLACE HE SAID EVEN AS THEY PRAISE CATERPILLAR FOR ITS STRONG COST CUTTING AND EFFICIENCY MOVES IN RECENT YEARS SOME ANALYSTS REMAIN CONCERNED ABOUT THE LACK OF A LABOR CONTRACT WITH THE UNITED AUTO WORKERS WHICH REPRESENTS MOST OF THE COMPANY'S U. S. PRODUCTION EMPLOYEES WHILE THEY QUESTION THE U. A. W.'S CONTENTION THAT ITS SO CALLED WORK TO RULE CAMPAIGN HAS AFFECTED PRODUCTION ANALYSTS WORRY ABOUT ANOTHER STRIKE IN NOVEMBER A THREE DAY WALKOUT WAS CALLED IN PROTEST OF THE COMPANY'S SUSPENSION OF A UNION OFFICER AT CATERPILLAR'S ENGINE PLANT IN MOSSVILLE ILLINOIS AS THE COMPANY RELEASED ITS RESULTS U. A. W. SECRETARY TREASURER BILL CASSTEVENS WAS TOURING UNION HALLS TO RALLY MEMBERS WHO WORK AT THE COMPANY'S PLANTS IN ILLINOIS AND PENNSYLVANIA IMAGINE HOW MUCH BETTER CAT COULD DO IF THEY WERE NOT AT WAR WITH THEIR OWN WORKERS MR. CASSTEVENS SAID IN A STATEMENT COPLEY PHARMACEUTICAL INCORPORATED'S ONCE POPULAR ASTHMA MEDICATION ALBUTEROL HAS BEEN LINKED TO HEALTH PROBLEMS IN LAWSUITS AND COMPLAINTS TO THE FOOD AND DRUG ADMINISTRATION AS PREVIOUSLY REPORTED COPLEY RECALLED ALBUTEROL EARLIER THIS MONTH AFTER DISCOVERING SAMPLES CONTAMINATED WITH BACTERIA AT THE TIME THE COMPANY SAID IT WAS UNAWARE OF ANY REPORTS LINKING THE DRUG TO ILLNESS THE COMPANY A MAJOR GENERIC DRUG MAKER CONTINUES TO MAINTAIN THAT IT KNOWS OF NO CONFIRMED CASES OF HEALTH PROBLEMS CAUSED BY THE DRUG BUT THE COMPANY NOW FACES TWO SEPARATE LAWSUITS FILED IN STATE COURT IN CHICAGO ALLEGING THAT A SEVENTEEN MONTH OLD BOY AND A TEN MONTH OLD GIRL CONTRACTED LIFE THREATENING PNEUMONIA AFTER TAKING THE DRUG THE F. D. A. ALSO SAYS IT HAS RECEIVED COMPLAINTS ABOUT ALBUTEROL INCLUDING SOME ALLEGING A LINK BETWEEN THE PRODUCT AND HEALTH PROBLEMS THE RECALL AND COPLEY'S HANDLING OF IT HAS ALSO LED SOME TO QUESTION WHETHER GENERIC DRUG MAKERS WHO SEEK TO KEEP COSTS AND PRICES LOW ARE AS RELIABLE OR RESPONSIVE AS MAJOR PHARMACEUTICAL COMPANIES DOCTOR JOHN STRIMAS A NASHVILLE TENNESSEE ASTHMA SPECIALIST AND PEDIATRICIAN SAID THE RECALL CASTS A BROAD CLOUD OVER GENERIC DRUGS AND THAT HE WILL NO LONGER PRESCRIBE COPLEY'S ALBUTEROL QUOTE I HAVE PUT A LOT OF FAITH IN GENERICS BUT I'M AFRAID THIS WILL HAVE A BAD IMPRESSION ON A LOT OF US WHO HAVE TRUSTED GENERICS SAID DOCTOR STRIMAS A MEMBER OF THE BOARD OF REGENTS OF THE AMERICAN COLLEGE OF ALLERGY AND IMMUNOLOGY NANCY SANDER PRESIDENT OF ALLERGY AND ASTHMA NETWORK SLASH MOTHERS OF ASTHMATICS A CONSUMER HEALTH ORGANIZATION IN FAIRFAX VIRGINIA CONTENDED THAT COPLEY WASN'T AS PREPARED TO DEAL WITH A RECALL AS A NAME BRAND DRUG COMPANY WOULD HAVE BEEN WE RECEIVED HUNDREDS OF CALLS ABOUT THIS SHE SAID PEOPLE WERE ANGRY THEY FOUND IT DIFFICULT TO GET THROUGH TO COPLEY AND WHEN THEY DID GET THROUGH THEY FELT THEY WERE TREATED RUDELY AND THEIR QUESTIONS WEREN'T ANSWERED JANET TOBIAS A SAINT JOSEPH MICHIGAN HOUSEWIFE WHOSE SEVEN YEAR OLD SON HAS ASTHMA AND WAS USING COPLEY'S ALBUTEROL SAID I TRIED FOR FOUR DAYS TO GET THROUGH TO COPLEY AND COULDN'T THE LINE WAS ALWAYS BUSY QUOTE THE COMPANY BASED IN CANTON MASSACHUSETTS SAYS IT HAS TRIED TO ACCOMMODATE CONCERNED ALBUTEROL USERS WITH AS MANY AS FIFTEEN PHONE LINES AT A TIME DEVOTED TO THE RECALL IT DENIES THAT ITS STAFF HAS BEEN RUDE TO CALLERS WE HAVE NOT BEEN THROUGH A RECALL BEFORE IT'S A CHALLENGING SITUATION SAID STEVEN TANNENBAUM COPLEY'S CHIEF FINANCIAL OFFICER YOU'RE GOING TO HAVE A LOT OF PUBLIC REACTION BUT I DON'T GET THE SENSE THIS WASN'T HANDLED PROPERLY OR THAT THE SITUATION IS OUT OF CONTROL IT'S TOTALLY IN CONTROL COPLEY WHICH IS FIFTY ONE PERCENT OWNED BY THE HOECHST CELANESE CORPORATION UNIT OF GERMANY'S HOECHST A. G. ANNOUNCED THE RECALL ON JANUARY SIXTH AFTER IT DISCOVERED THE BACTERIA PSEUDOMONAS FLUORESCENS IN SOME TWENTY MILLILITER VIALS OF ALBUTEROL SULFATE INHALATION SOLUTION WITH A ZERO POINT FIVE PERCENT CONCENTRATION THE BACTERIA CAN CAUSE SERIOUS INFECTIONS PARTICULARLY IN PEOPLE WITH CYSTIC FIBROSIS CHRONIC OBSTRUCTIVE LUNG DISEASE OR COMPROMISED IMMUNE SYSTEMS ALBUTEROL ZERO POINT FIVE PERCENT IS AN INHALATION SOLUTION USED TO TREAT A VARIETY OF BREATHING DISORDERS THE DRUG IS SOLD UNDER COPLEY'S NAME AND THE PRIVATE LABELS ALIGEN ASTRA GENEVA GOLDINE HARBOR MAJOR MOORE H. L. MOORE QUALITEST RUGBY AND SCHEIN COPLEY'S ALBUTEROL SULFATE ZERO POINT ZERO EIGHT THREE PERCENT SOLUTION WASN'T AFFECTED BY THE RECALL THERE'S BEEN A LOT OF CONSUMER RESPONSE AND A LOT OF PEOPLE CLAIMING THINGS BUT CERTAINLY NOTHING THAT'S BEEN CONFIRMED MR. TANNENBAUM SAID BUT THE LAWSUITS IN CHICAGO WHICH SEEK UNSPECIFIED DAMAGES ALLEGE OTHERWISE THE SUITS WERE FILED IN THE CIRCUIT COURT OF COOK COUNTY BRIAN MURPHY A LAWYER REPRESENTING THE FAMILIES OF THE CHILDREN SAID QUOTE THE INFECTIONS THAT WERE CAUSING THE PNEUMONIAS MATCHED THE CONTAMINANTS THAT WERE FOUND IN THE COPLEY PRODUCT NAMELY PSEUDOMONAS QUOTE THE TWO CHILDREN FROM SEPARATE FAMILIES WERE BOTH IN VERY BAD SHAPE AND CONTINUE TO BE SO MR. MURPHY SAID FRIDAY HE ASKED THAT THEIR NAMES NOT BE DISCLOSED COPLEY'S MR. TANNENBAUM SAID HE COULDN'T COMMENT ON THE LITIGATION THE F. D. A. WHICH SAYS IT RECEIVED A NUMBER OF ALBUTEROL COMPLAINTS IS EVALUATING ANY INFORMATION THAT COMES IN TO SEE IF WE HAVE A CAUSE AND EFFECT COMPLAINT SAID RICHARD SWANSON DIRECTOR OF EMERGENCY AND EPIDEMIOLOGICAL OPERATIONS FOR THE AGENCY AT THIS PARTICULAR MOMENT WE KNOW OF NO CONTAMINATED PRODUCT THAT GOT OUT OF THE CONTROL OF THE MANUFACTURER HE ADDED THAT THE F. D. A. DIDN'T RECEIVE ANY COMPLAINTS UNTIL AFTER THE RECALL WAS ANNOUNCED BUT DOCTOR STRIMAS THE NASHVILLE ASTHMA SPECIALIST NOTED THAT BEFORE THE RECALL WE WEREN'T LOOKING FOR IT WE KNOW FIVE THOUSAND PEOPLE DIE FROM ASTHMA A YEAR AND WE HAVE NOT BEEN LOOKING FOR THIS WHEN MY PATIENTS COME IN COUGHING AND WHEEZING I'LL BE MORE CAREFUL PSEUDOMONAS SCARES ME HE SAYS QUOTE WOULD YOU LIKE TO BREATHE IT I WOULDN'T DO IT FOR A MILLION DOLLARS I WOULD RATHER WALK PAST A RATTLESNAKE THAN BREATHE A VIAL OF THAT STUFF Q. V. C. NETWORK IS UNDER INCREASED PRESSURE TO IMPROVE ITS BID FOR PARAMOUNT FOLLOWING THE PARAMOUNT BOARD'S ENDORSEMENT OF THE LATEST NINE POINT EIGHT BILLION DOLLAR TAKEOVER BID BY VIACOM LAZARD FRERES ADVISED THE DIRECTORS THAT THE VIACOM BID WAS QUOTE MARGINALLY SUPERIOR QUOTE EVEN THOUGH ITS MARKET VALUE IS CURRENTLY LOWER THAN THE Q. V. C. OFFER VALUED AT ABOUT TEN POINT TWO BILLION DOLLARS TOKYO STOCKS PLUNGED FOUR POINT THREE PERCENT DURING MONDAY MORNING'S SESSION HURT BY THE UNEXPECTED REJECTION IN PARLIAMENT FRIDAY OF LEGISLATION TO REFORM THE POLITICAL SYSTEM IN JAPAN CITICORP IS NEGOTIATING WITH THE U. S. TO END THE STRICT REGULATORY SUPERVISION IMPOSED IN FEBRUARY NINETEEN NINETY TWO AS THE BANK WAS STRUGGLING TO RECOVER FROM BILLIONS OF DOLLARS OF BAD LOANS I. B. M. IS EXPECTED TO REPORT ITS FIRST QUARTERLY PROFIT IN OVER A YEAR BUT SOME ANALYSTS SAID IT IS TOO SOON TO CONCLUDE THAT A TURNAROUND IS AT HAND A FEDERAL JUDGE APPROVED PRUDENTIAL SECURITIES' NINETY POINT SEVEN MILLION DOLLAR SETTLEMENT OF A CLASS ACTION SUIT THAT ACCUSED THE BROKERAGE FIRM OF MISLEADING ENERGY LIMITED PARTNERSHIP INVESTORS G. M. TEMPORARILY HALTED PRODUCTION OF REDESIGNED NINETEEN NINETY FOUR S. TEN PICKUP TRUCKS AND THEN RECALLED ALL ONE HUNDRED TWENTY THOUSAND OF THE TRUCKS BUILT SO FAR TO FIX DEFECTIVE FUEL TANKS THAT PUT THE VEHICLES OUT OF COMPLIANCE WITH U. S. SAFETY STANDARDS TRADE NEGOTIATORS ENDED SIX DAYS OF TALKS WITH A PROPOSAL BUT STILL NO ACCORD TO CUT GLOBAL ALUMINUM OUTPUT DELAYING HOPES FOR A QUICK TURNAROUND IN THE SEVERELY DEPRESSED INDUSTRY THE DOW JONES INDUSTRIAL AVERAGE SURGED TWENTY TWO POINT FIVE TWO TO THREE THOUSAND NINE HUNDRED FOURTEEN POINT FOUR EIGHT CLOSING ABOVE THE THREE THOUSAND NINE HUNDRED LEVEL FOR THE FIRST TIME NORTHWEST AIRLINES AND K. L. M. ROYAL DUTCH AIRLINES CUT CERTAIN OVERSEAS FARES AS MUCH AS THIRTY PERCENT AND OTHER BIG CARRIERS INDICATED THEY WOULD FOLLOW BELL ATLANTIC REQUESTED PERMISSION FROM THE JUSTICE DEPARTMENT TO PROVIDE LONG DISTANCE SERVICES AS PART OF ITS PROPOSED ACQUISITION OF T. C. I. PUBLISHER ZIFF DAVIS PLANS TO UNVEIL AN ON LINE INFORMATION SERVICE TARGETED TOWARD AVID COMPUTER USERS U. S. X. REPORTED A THIRTY SEVEN MILLION DOLLAR PROFIT FOR THE FOURTH QUARTER COMPARED WITH A YEAR AGO LOSS LED BY ITS STEEL UNIT WESTINGHOUSE POSTED A NARROWER FOURTH QUARTER LOSS ALTHOUGH MANY OF ITS UNITS REPORTED WEAK RESULTS POLICY MANAGEMENT SYSTEMS ACKNOWLEDGED THAT IT RECOGNIZED SOME REVENUE FROM LICENSING PACTS BEFORE THEY WERE FORMALLY SIGNED BUT DENIED MISREPRESENTING ITS FINANCIAL HEALTH IN AN EFFORT TO DECEIVE INVESTORS CAPITAL CITIES SLASH A. B. C. IS EXPECTED TO ANNOUNCE THAT IT ACQUIRED A STAKE IN ALPHA SOFTWARE IN EXCHANGE FOR RUNNING ALPHA ADS ON ITS MEDIA NETWORK PARAMOUNT'S PUBLISHING UNIT PLANS TO SHARPLY CUT THE NUMBER OF BOOKS PRODUCED UNDER THE MACMILLAN NAME CONTINENTAL AIRLINES PLANS TO REDUCE FLIGHTS AT ITS DENVER HUB BY TWENTY THREE PERCENT ANOTHER STEP IN WHAT APPEARS TO BE A COMPANY WIDE ROUTE RESTRUCTURING BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND SIX HUNDRED SEVEN POINT EIGHT ONE OFF TWO POINT EIGHT ONE COMMODITIES OIL FOURTEEN DOLLARS AND NINETY FOUR CENTS A BARREL OFF TWO CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY TWO POINT ONE OH OFF ZERO POINT SIX EIGHT SPOT INDEX ONE HUNDRED TWENTY NINE POINT FOUR OH OFF ZERO POINT FOUR SIX ECONOMIC DOCTORS USED TO SNEER AT THE KROONS SOMS LATS AND OTHER ODDLY NAMED CURRENCIES THAT SPROUTED UP IN THE INDEPENDENT REPUBLICS OF THE FORMER SOVIET UNION NO MORE WITH THE RUSSIAN RUBLE TUMBLING TO NEW LOWS AND MOSCOW'S MOST PROMINENT REFORMERS BAILING OUT IN DISGUST INTERNATIONAL INSTITUTIONS AND OTHERS HAVE BEGUN TO LOOK WITH FAVOR ON THE NEWLY MINTED MONIES IN SUCH STATES AS LATVIA KAZAKHSTAN AND THE KYRGYZ REPUBLIC QUOTE THE INTERNATIONAL MONETARY FUND GOT IT WRONG AND RUSSIA GOT IT WRONG IN THE EARLY DAYS WHEN THEY WERE TRYING TO MAINTAIN THE INTEGRITY OF THE RUBLE AREA QUOTE SAYS DAVID DYKER A SENIOR FELLOW AT THE ROYAL INSTITUTE FOR INTERNATIONAL AFFAIRS IN LONDON THESE DAYS DIVORCING THE RUBLE IS VIEWED AS A STEP TOWARD ESCAPING THE CHAOS SAYS ONE WASHINGTON BASED ADVISER TO THE REPUBLICS SO THE I. M. F. AND WORLD BANK NOW ARE SENDING SUPPORTIVE SIGNALS TO THE INDEPENDENT CURRENCIES EARLIER THIS MONTH INTERNATIONAL DONORS AGREED TO A ONE BILLION DOLLAR PACKAGE OF AID AND CONCESSIONAL LOANS FOR KAZAKHSTAN ABOUT FIVE TIMES THE AMOUNT COMMITTED THE PREVIOUS YEAR THE WORLD BANK IS PUTTING UP ABOUT FORTY PERCENT OF THE PACKAGE WITH THE JAPANESE GOVERNMENT PROVIDING ABOUT TWENTY PERCENT IN PART THE MONEY IS AIMED AT SUPPORTING THE TENGE THE CURRENCY THAT KAZAKHSTAN ROLLED OUT LAST NOVEMBER ONE BANKER REASONS THAT IF NEW CURRENCIES SUCH AS THE TENGE CAN BE STABILIZED AS SOME OF THEM HAVE BEEN THERE'LL BE MORE INVESTOR AND DONOR INTEREST IN THE OUTLYING REPUBLICS THAN IN RUSSIA BY THE SAME TOKEN THERE'S GROWING WORRY ABOUT BELARUS WHICH RECENTLY AGREED TO JOIN A MONETARY UNION WITH RUSSIA ENDING A TIMID EXPERIMENT IN MONETARY INDEPENDENCE AND RETIRING THE MEEKLY NAMED RUBEL WHICH IS NEARLY IDENTICAL TO THE RUSSIAN CURRENCY BUT PRONOUNCED WITH THE ACCENT ON THE SECOND SYLLABLE THE SENSE OF HOPE THAT SURROUNDS SOME OF THE REPUBLICS' NEW CURRENCIES GOES ALONG WITH THE HOPELESSNESS DIRECTED TOWARD THE RUBLE WHICH IS AGAIN VULNERABLE TO INFLATION AFTER SEVERAL MONTHS OF REAL PROGRESS TOWARD STABILITY LAST YEAR THE RUBLE ZONE FLOPPED EVEN FOR RUSSIA MAKING IT HARDER FOR MOSCOW TO KEEP TABS ON THE MONEY SUPPLY AND CONTROL INFLATION CURRENTLY REFORMERS IN MOSCOW STRENUOUSLY OPPOSE ANY EFFORTS TO REBUILD ONE WITH RUSSIA MANAGING ONE OF THE WOBBLIER REFORM PROGRAMS THE REFORM MINDED STATES WOULD BE HELD BACK IF THEY WERE YOKED TO THE MONETARY MAYHEM AT THE RUSSIAN CENTRAL BANK FOR DIFFERING PERIODS LAST YEAR THE ESTONIAN KROON AND THE LATVIAN LAT WERE AMONG THE WORLD'S MORE STABLE CURRENCIES HAD THESE BALTIC COUNTRIES BEEN SADDLED WITH RUBLES DURING THIS PERIOD THEIR PROGRESS TOWARD ECONOMIC REFORM UNDOUBTEDLY WOULD HAVE BEEN SLOWED ONE EXCEPTION AMONG THE STRONG NEW CURRENCIES OF THE FORMER SOVIET REPUBLICS IS UKRAINE'S KARBOVANET WHICH ENJOYS THE DUBIOUS DISTINCTION OF DETERIORATING FASTER THAN THE RUBLE THE KIEV GOVERNMENT WITH ONLY A NOMINAL COMMITMENT TO ECONOMIC REFORM LAUNCHED A NEW CURRENCY IN THE SAME SPIRIT AS HOISTING AN INDEPENDENT FLAG BUT SINCE THE CURRENCY WASN'T BACKED BY A CREDIBLE ECONOMIC POLICY THE NEW MONEY BECAME HIGHLY INFLATIONARY AND FOREIGN INVESTORS HAVE STEERED CLEAR OF COURSE THE FLEDGLING CURRENCIES NEED MORE THAN COHERENT ECONOMIC REFORMS AT HOME TO REMAIN STABLE HOWEVER STEADFAST THE FORMER SOVIET REPUBLICS ARE NEARLY ALL OF THEM CAN EXPECT HEFTY TRADE DEFICITS WITH RUSSIA THE REGION'S MAIN SUPPLIER OF ENERGY AND NATURAL RESOURCES THEY ALSO FACE PERILOUS BUDGET DEFICITS THE INTERNATIONAL LENDING INSTITUTIONS WILL HAVE TO PROVIDE THEM SUBSTANTIAL FINANCIAL SUPPORT OTHERWISE THEY WILL BE TEMPTED TO COPE WITH THESE PROBLEMS BY PRINTING MONEY WHICH WOULD ERODE THEIR NEW CURRENCIES SOME OF THE REPUBLICS ARE BETTER POSITIONED TO SUPPORT THEIR CURRENCIES THAN OTHERS THE BALTICS KEPT GOLD RESERVES IN PARIS LONDON BASEL AND STOCKHOLM FROM THEIR DAYS OF INDEPENDENCE BEFORE WORLD WAR TWO WHEN THEY BROKE OFF FROM THE SOVIET UNION THREE YEARS AGO THEY GOT THE GOLD BACK A FACTOR THAT HELPS BOLSTER THEIR CURRENCIES NOW KAZAKHSTAN FOR ITS PART HAS VAST OIL RESERVES MORE THAN ECONOMICS IS AT STAKE IN THE CREDIBILITY OF THE NEW CURRENCIES IF THE NEW CURRENCIES TURN HYPER INFLATIONARY GOVERNMENTS MAY THROW UP THEIR HANDS AND SLIDE BACK INTO A RECREATED RUBLE ZONE PHILIP HANSON OF THE CENTRE FOR RUSSIAN AND EAST EUROPEAN STUDIES AT ENGLAND'S BIRMINGHAM UNIVERSITY WARNS THAT THERE'S AN ELEMENT OF NEO IMPERIALIST DRIVE IN MOSCOW'S PUSH TO INCORPORATE BELARUS AND POSSIBLY OTHERS INTO ITS MONETARY EMBRACE THAT COULD BE AN ECONOMIC AND POLITICAL DISASTER SAYS MR. DYKER IF IT'S FEASIBLE FOR NON RUSSIAN REPUBLICS TO STABILIZE THEIR ECONOMIES THEY'RE FAR BETTER OFF OUTSIDE THE RUBLE ZONE THE CHIPS ARE DOWN NOW ZIFF COMMUNICATIONS COMPANY'S COMPUTER PUBLISHING UNIT ZIFF DAVIS PUBLISHING COMPANY PLANS TO INTRODUCE AN ON LINE INFORMATION SERVICE TARGETED TOWARD AVID COMPUTER USERS THE LATEST ENTRY INTO THE CROWDED INFORMATION MARKETPLACE CARRYING THE WORKING NAME INTERCHANGE ONLINE NETWORK IS EXPECTED TO BE ANNOUNCED TODAY IT WILL OFFER THE USUAL ON LINE FARE ELECTRONIC MAIL DISCUSSION GROUPS GAMES AND ACCESS TO NEWS AND PERIODICALS BUT IT ALSO WILL PROVIDE SPECIALIZED ARTICLES GLEANED FROM ZIFF'S COMPUTER ORIENTED MAGAZINES INCLUDING P. C. MAGAZINE AND MACUSER AS WELL AS FROM OTHER SPECIAL INTEREST PUBLISHERS WITH WHICH ZIFF EXPECTS TO COLLABORATE QUOTE THIS IS THE REINVENTION OF A MARKET FROM A BROADCAST MEDIUM TO NETWORKS OF TIGHTLY AFFILIATED SPECIAL INTEREST SERVICES QUOTE SAID MICHAEL KOLOWICH WHO HEADS ZIFF DAVIS INTERACTIVE THE CAMBRIDGE MASSACHUSETTS UNIT THAT WILL RUN THE NEW SERVICE THE UNIT ALSO OPERATES ZIFFNET ANOTHER ON LINE SERVICE THAT OFFERS ZIFF'S PUBLICATIONS AS PLAIN TEXT BY CONTRAST THE NEW INTERCHANGE NETWORK INCLUDES MUCH MORE VISUALLY ORIENTED MATERIAL THAT USES PLAQUES AND BUTTONS IT WILL PROVIDE CONSIDERABLE VERSATILITY PERMITTING USERS FOR INSTANCE TO LOCATE SIMILAR ARTICLES AND INFORMATION FROM A WIDE VARIETY OF SOURCES AND DATABASES AND TO CALL THEM UP IN A PACKAGE OR USERS CAN SUBSCRIBE TO PARTICULAR FEATURES FROM THE VARIOUS MAGAZINES AND VIEW THEM LATER WITHOUT INCURRING ADDITIONAL HOURLY ON LINE CHARGES MOREOVER THE PACKAGE WILL BE ABLE TO PERFORM SEVERAL TASKS AT ONCE WHILE ORGANIZING INFORMATION GRAPHICALLY THE BIG TRANSITION HERE IS FROM THE ON LINE WORLD AS A TEXT DATABASE TO THE ON LINE WORLD AS RICH COLLECTIONS OF MULTIMEDIA DOCUMENTS SAID MR. KOLOWICH CURRENTLY MANY POPULAR ON LINE SERVICES CAN PERFORM ONLY ONE FUNCTION AT A TIME INTERCHANGE IS THE LATEST ENTRY IN AN INCREASINGLY CROWDED MARKETPLACE ZIFF'S ARCHRIVAL COMPUTER PUBLISHER INTERNATIONAL DATA GROUP PLANS TO ROLL OUT ITS OWN COMPUTER SPECIALIZED ON LINE SERVICE THIS SUMMER PRODIGY SERVICES COMPANY A PARTNERSHIP BETWEEN INTERNATIONAL BUSINESS MACHINES CORPORATION AND SEARS ROEBUCK AND COMPANY CLAIMS TWO MILLION MEMBERS WHILE H. AND R. BLOCK COMPANY'S COMPUSERVICE INFORMATION SERVICES INCORPORATED THE OLDEST ON LINE SERVICE REPORTS ALMOST ONE POINT SEVEN MILLION MEMBERS AND AMERICA ONLINE INCORPORATED SAYS IT RECENTLY SURPASSED FIVE HUNDRED FIFTY THOUSAND SUBSCRIBERS MORE THAN DOUBLING ITS BASE DURING THE PAST YEAR MR. KOLOWICH SAID ZIFF PLANS TO SPEND TENS OF MILLIONS OF DOLLARS IN STARTING UP THE NEW VENTURE AND AIMS TO TEST IT WITH THIRTY THOUSAND USERS INITIALLY STARTING IN FEBRUARY HE SAID IT WILL BE PRICED AT TEN DOLLARS TO FIFTEEN DOLLARS A MONTH WITH HOURLY USAGE FEES LOWER THAN ZIFFNET'S TWELVE DOLLAR AND EIGHTY CENT AN HOUR CHARGE FOR SLOWER ACCESS SPEEDS HE DECLINED TO DISCUSS THE COMPANY'S SUBSCRIBER TARGET FOR THE NEW SERVICE THOUGH ANALYSTS SAY THEY WOULD EXPECT THE FIGURE TO REACH AROUND TWO HUNDRED THOUSAND BY THE END OF THE FIRST YEAR OF SERVICE THE MARKET IS GROWING REALLY RAPIDLY SAID LINK RESOURCES ANALYST STEVE SIECK WHO ESTIMATES THE MARKET WILL GROW BY MORE THAN A MILLION USERS A YEAR IT'S NO WONDER A LOT OF PEOPLE ARE GETTING INTO IT INTERCHANGE PRESENTS PARTICULAR COMPETITIVE PRESSURE FOR COMPUSERVE WHICH CARRIES ZIFFNET AND WHICH HAS DRAWN COMPUTER FANATICS FOR FIFTEEN YEARS QUOTE COMPUSERVE CAN'T DROP ZIFFNET QUOTE SAID ANALYST GARY ARLEN OF ARLEN COMMUNICATIONS THE NEW SERVICE HE SAID GIVES ZIFF A WAY TO STAY WHERE THEY ARE AND STILL SIPHON OFF SOME OF COMPUSERVE'S BEST CUSTOMERS BARRY BERKOV EXECUTIVE VICE PRESIDENT OF INFORMATION SERVICES FOR COMPUSERVE SAID HE ISN'T WORRIED ABOUT THE NEW COMPETITION ULTIMATELY IT'S GOING TO EXPAND THE MARKETPLACE HE SAID SEVERAL INDUSTRY OFFICIALS SAID CUSTOMERS WILL SUBSCRIBE TO MORE THAN ONE SERVICE IN THE FAST GROWING ON LINE INDUSTRY ZIFF ALSO PLANS TO ADVERTISE ON THE NEW SERVICE TESTING FEEDBACK THE FIRST FEW MONTHS ITS MAGAZINE PORTFOLIO RAN MORE THAN SEVEN HUNDRED MILLION DOLLARS IN ADVERTISING IN NINETEEN NINETY THREE AND OFFICIALS EXPECT TO GARNER AD REVENUE ON INTERCHANGE MARY MODAHL AN ANALYST FOR FORRESTER RESEARCH INCORPORATED SAID THAT THE POTENTIAL FOR ADVERTISING ON LINE IS LARGE WHEN IT IS AIMED AT SPECIAL INTEREST MARKETS THE COMPANY DOESN'T SEE THE SERVICE CUTTING INTO PRINT MAGAZINE SALES MR. KOLOWICH SAID ELECTRONIC AND PRINT ARE COMPANION MEDIA FEEDING OFF EACH OTHER CLASSROOMS WITH POLITICIANS AS LECTURERS ACADEMIC INSTRUCTION AIDED BY YOGA SCHOOL DOORS OPEN FROM DAWN TO DUSK PUBLIC SCHOOLS RUN FOR PROFIT EACH OF THESE CONCEPTS STANDS A FAIR CHANCE OF BECOMING REALITY IN THE STATE OF MASSACHUSETTS A RADICAL NEW STATE EDUCATION LAW AUTHORIZES THE ESTABLISHMENT OF UP TO TWENTY FIVE SO CALLED CHARTER SCHOOLS PUBLIC SCHOOLS THAT RECEIVE STATE FUNDING AS WELL AS SOME MEASURE OF AUTONOMY FROM LOCAL SCHOOL BOARDS AND THE RULES THAT GOVERN CONVENTIONAL SCHOOLS CHARTER SCHOOLS ALREADY ARE OPERATING IN MINNESOTA AND CALIFORNIA AND FIVE OTHER STATES RECENTLY ENACTED CHARTER SCHOOL LEGISLATION ADVOCATES OF SUCH SCHOOLS ARGUE THAT THEY PROVIDE BADLY NEEDED COMPETITION FOR EXISTING PUBLIC SCHOOLS BY GIVING ANYONE WITH A GOOD EDUCATION IDEA ACCESS TO GOVERNMENT FUNDING SO LONG AS THEY CAN ATTRACT STUDENTS BUT MASSACHUSETTS' LAW HAS ATTRACTED PARTICULARLY GREAT INTEREST AMONG EDUCATORS AND POTENTIAL OPERATORS BECAUSE IT PROVIDES GREATER INDEPENDENCE FROM THE EDUCATIONAL ESTABLISHMENT THAN ELSEWHERE UNLIKE MOST OTHER STATES MASSACHUSETTS NOT LOCAL SCHOOL BOARDS WILL GRANT THE CHARTERS REFLECTING A BELIEF BY STATE OFFICIALS THAT THE EXISTING PUBLIC SCHOOL SYSTEM IS INCAPABLE OF MAKING SERIOUS CHANGE INDEED THESE OFFICIALS SAY THAT THE SYSTEM HAS FAILED CHILDREN AND THAT PARENTS TEACHERS AND PRIVATE COMPANIES SHOULD BE GIVEN A CHANCE TO DO BETTER QUOTE I THINK IT'S THE MOST EXCITING ISSUE WE HAVE HAD IN EDUCATION IN A LONG TIME QUOTE SAYS MASSACHUSETTS SECRETARY OF EDUCATION PIEDAD F. ROBERTSON WE HAVE BEEN EXPERIMENTING AROUND THE EDGES AND FINALLY WE CALL IT BY A NAME AND WE HAVE MADE IT LEGAL WITH APPLICATIONS TO RUN THE FIRST CHARTER SCHOOLS DUE BY FEBRUARY FIFTEENTH STATE OFFICIALS SAY THIRTY THREE DIFFERENT GROUPS INCLUDING WHITTLE COMMUNICATIONS INCORPORATED'S EDISON PROJECT AND SEVERAL OTHER PRIVATE COMPANIES HAVE EXPRESSED INTEREST IN APPLYING ALTHOUGH UNDER THE CURRENT LAW THE FIRST CHARTER SCHOOLS CANNOT OPEN UNTIL SEPTEMBER NINETEEN NINETY FIVE STATE OFFICIALS ARE HOPING TO AMEND THE LAW TO ALLOW SOME SCHOOLS TO OPEN THIS FALL AND TO ELIMINATE THE TWENTY FIVE SCHOOL LIMIT BUT SO FAR THEY HAVE BEEN UNSUCCESSFUL UNDER THE NEW LAW PUBLIC SCHOOL TEACHERS IN MASSACHUSETTS CAN TAKE A TWO YEAR LEAVE OF ABSENCE TO TEACH IN CHARTER SCHOOLS THE SCHOOLS WILL BE PARTICULARLY ATTRACTIVE TO PUBLIC SCHOOL TEACHERS WHO HAVE SAID ENOUGH ALREADY WE KNOW EXACTLY HOW WE WOULD RUN THE CIRCUS SAYS LISA BLOUT THE STATE'S UNDERSECRETARY OF EDUCATION AS FOR POTENTIAL OPERATORS THE EDISON PROJECT PLANS TO PROPOSE AT LEAST ONE SCHOOL AT FIRST WITH ELEMENTARY AND MIDDLE SCHOOL GRADES BUT LATER EXPANDING INTO HIGH SCHOOL WITH A COMPUTER AIDED CURRICULUM INCLUDING AT LEAST THREE MILLION DOLLARS IN TECHNOLOGICAL TOOLS BENNO SCHMIDT PRESIDENT OF THE EDISON PROJECT SAYS HIS COMPANY IS TALKING WITH ABOUT A DOZEN MASSACHUSETTS MUNICIPALITIES AND SOME LOCAL SCHOOL BOARDS ABOUT JOINTLY APPLYING FOR CHARTERS HE SAYS HE HOPES THAT COOPERATING WITH LOCAL BOARDS WILL GALVANIZE SUPPORT FOR THE SCHOOL IN THE COMMUNITY REMEDIATION AND EDUCATIONAL SUPPORT SYSTEMS INCORPORATED A CLOSELY HELD COMPANY IN SWANSEA MASSACHUSETTS THAT PROVIDES COMPUTERIZED EDUCATIONAL SERVICES TO SCHOOLS IN PUERTO RICO AND ELSEWHERE PLANS A NEW SCHOOL FROM KINDERGARTEN THROUGH HIGH SCHOOL THAT STRESSES HISPANIC CULTURE AND IS EXPECTED TO APPLY FOR A CHARTER ELSEWHERE IN THE STATE EXPECTED CHARTER APPLICANTS INCLUDE A CONSORTIUM OF SIX BOSTON ARTS COLLEGES HOPING TO OPEN THE CITY'S FIRST VISUAL AND PERFORMING ARTS HIGH SCHOOL THEN THERE IS A DAY CARE CENTER IN LAWRENCE THAT WANTS TO CREATE AN ELEMENTARY SCHOOL THAT WOULD BE OPEN FROM SIX A. M. TO SIX P. M. AND A PARENT FROM FRANKLIN PLANS TO PROPOSE A HOLISTIC ELEMENTARY AND MIDDLE SCHOOL THAT WOULD ADDRESS LEARNING WITH OUR HEART OUR HEADS OUR HANDS TWO PUBLIC SCHOOL TEACHERS IN CHELSEA WANT TO START A SCHOOL GRADES SEVEN THROUGH TWELVE THAT WOULD STRESS CIVIC VALUES AND WOULD INVITE POLITICIANS INTO THE CLASSROOM A GROUP OF AFRICAN AMERICAN SCIENTISTS AND ENGINEERS WANTS TO CREATE AN ELEMENTARY AND MIDDLE SCHOOL THAT STRESSES MATH AND SCIENCE AND THE SWAMI VIVEKANANDA INTERNATIONAL FOUNDATION IN BOSTON ENVISIONS A NEW SCHOOL FROM KINDERGARTEN TO POST HIGH SCHOOL THAT WOULD COMBINE THE QUOTE BEST OF EASTERN THOUGHT AND THE BEST OF WESTERN THOUGHT QUOTE AS WELL AS YOGA INSTRUCTION SAYS RAMADHEEN RAMSAMOOJ THE FOUNDATION'S PRESIDENT FOR MANY OF THE PROSPECTIVE APPLICANTS EUPHORIA OVER THE OPPORTUNITY TO CREATE A NEW SCHOOL IS TEMPERED BY THE REALITY OF RAISING ENOUGH MONEY TO GET IT STARTED WHILE THE LAW STIPULATES THAT CHARTER SCHOOLS WILL RECEIVE THE SAME PER STUDENT AID AS OTHER PUBLIC SCHOOLS IN BOSTON FOR EXAMPLE THAT'S ABOUT SIX THOUSAND TWO HUNDRED DOLLARS PER STUDENT THERE IS NO PROVISION FOR ACQUIRING REAL ESTATE DESKS TEXTBOOKS OR OTHER START UP COSTS DIANNE H. RUSSELL A BOSTON INVESTMENT BANKER WHO IS ADVISING THE EDISON PROJECT ON LOW COST FINANCING ALTERNATIVES SAYS SHE EXPECTS ONLY APPLICANTS WITH THE STRONGEST PROPOSALS AND A DEMONSTRATED LEVEL OF EXCELLENCE IN EDUCATION TO SUCCEED IN OBTAINING FUNDING FROM PUBLIC OR PRIVATE SOURCES OTHERS SHE BELIEVES WILL FALL BY THE WAYSIDE STATE OFFICIALS CONCEDE THAT BUYING RENTING OR LEASING SPACE IS THE BIGGEST OBSTACLE FOR NEW CHARTER SCHOOLS THEY SAY THEY MAY TRY TO PROVIDE SURPLUS STATE PROPERTY OR FIND EMPTY CLASSROOMS IN PUBLIC SCHOOLS OR COLLEGES OR GUARANTEE LOW INTEREST LOANS MASSACHUSETTS ALSO IS GRAPPLING WITH THE ISSUE OF THE SEPARATION OF CHURCH AND STATE OPPONENTS OF CHARTER SCHOOLS NOTE THAT SOME OF THE SCHOOLS' EXPECTED CURRICULA AND APPLICANTS APPEAR TO BE RELIGIOUS IN NATURE CAREFUL LEGAL REVIEW WILL THEREFORE BE NECESSARY TO DETERMINE AN APPLICANT'S ELIGIBILITY FOR PUBLIC FUNDING AMONG OPPONENTS TO CHARTER SCHOOLS IS MASSACHUSETTS' LARGEST TEACHERS' UNION KATHLEEN KELLEY PRESIDENT OF THE MASSACHUSETTS FEDERATION OF TEACHERS SAYS THAT BECAUSE CHARTER SCHOOLS CAN RESTRICT THEIR ENROLLMENT TO STUDENTS WHO MEET CERTAIN ACADEMIC STANDARDS THEY COULD END UP A SET OF SEPARATE ELITE SCHOOLS SHE ADDS THAT CHARTER SCHOOLS WILL DRAIN RESOURCES FROM PRE EXISTING SCHOOLS BUT DOCTOR ROBERTSON THE EDUCATION SECRETARY COUNTERS THAT WE CAN'T CONTINUE TO FAIL CHILDREN WHICH IS WHAT WE'RE DOING THIS HAS THE POTENTIAL OF NOT ONLY DELIVERING FOR CHILDREN BUT ALSO CREATING MODELS THAT THE REST OF THE PUBLIC SYSTEM CAN IMITATE AN ELEMENTARY SCHOOL THAT WOULD BE OPEN FROM SIX A. M. TO SIX P. M. IN TODAY'S POISONOUS POLITICAL CLIMATE GLENN ENGLISH SAYS THE ONLY WAY HE COULD LEAVE CONGRESS WITHOUT BEING CRITICIZED QUOTE IS TO HAVE DIED QUOTE HE DIDN'T BUT MR. ENGLISH FOUND HIS OWN VERSION OF BELTWAY HEAVEN ANYWAY AFTER NINETEEN YEARS AS AN OKLAHOMA CONGRESSMAN THE CONSERVATIVE DEMOCRAT RESIGNED HIS SEAT THIS MONTH TO TAKE THE HELM OF THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION SCORES OF EX LAWMAKERS TURN TO WELL PAID JOBS INFLUENCING GOVERNMENT BUT MR. ENGLISH STANDS OUT IN THE CAPITAL'S REVOLVING DOOR CULTURE HE DIDN'T WAIT AS IS TYPICAL FOR VOTERS TO OUST HIM OR EVEN TO SERVE OUT HIS TERM WHEN THE ASSOCIATION ASKED HIM LATE LAST YEAR TO REPLACE ITS RETIRING TOP EXECUTIVE FORMER CONGRESSMAN AND AGRICULTURE SECRETARY BOB BERGLAND HE PROMPTLY ABANDONED HIS SIXTH DISTRICT HOUSE SEAT IN MIDTERM TALK ABOUT THE REVOLVING DOOR COMPLAINS CHARLES LEWIS WHO HEADS THE WASHINGTON BASED CENTER FOR PUBLIC INTEGRITY THIS ONE CAME UNHINGED MR. LEWIS SAYS THE LUCRATIVE JOB REEKS OF A QUID PRO QUO FOR MR. ENGLISH'S EFFORTS AS CHAIRMAN OF A HOUSE RURAL DEVELOPMENT SUBCOMMITTEE TO FEND OFF WHITE HOUSE PLANS TO CUT BACK ON RURAL ELECTRIFICATION ADMINISTRATION SUBSIDIES TO THE TRADE ASSOCIATION'S MEMBERS MR. ENGLISH AND MR. BERGLAND BOTH DENY IT INSISTING THE OKLAHOMAN WASN'T APPROACHED ABOUT THE VACANCY UNTIL CONGRESS HAD COMPLETED ITS WORK ON THE REA BUDGET MR. ENGLISH SEES NOTHING WRONG WITH TAKING THE TRADE GROUP JOB ARGUING THAT IT GIVES ME A CHANCE TO DO SOMETHING POSITIVE FOR RURAL INTERESTS HE HAS LONG CHAMPIONED IT HOLDS OTHER ALLURES AS WELL INSTEAD OF FACING A CYNICAL PRESS CORPS AND SHUTTLING TO OKLAHOMA ON WEEKENDS MR. ENGLISH WILL WORK IN COMFORTABLE OBSCURITY FOR THE WASHINGTON BASED TRADE GROUP INSTEAD OF MERELY BATTLING TO STAVE OFF RURAL BUDGET CUTS HE'LL SOON LOBBY OLD FRIENDS IN CONGRESS AS HE OVERSEES NEW RURAL PROGRAMS HE HELPED DESIGN ON CAPITOL HILL AND HE'LL GET A HEFTY RAISE FROM HIS OLD ONE HUNDRED THIRTY THREE THOUSAND SIX HUNDRED DOLLARS CONGRESSIONAL SALARY MR. ENGLISH WON'T DISCLOSE HIS COMPENSATION BUT HIS PREDECESSOR EARNED TWO HUNDRED THIRTY THOUSAND DOLLARS BUT HIS DEPARTURE MAY ALSO FUEL PUBLIC DISCONTENT OVER THE INFLUENCE OF SPECIAL INTERESTS ON CONGRESS IT LOOKS AWFUL SAYS BROOKINGS INSTITUTION SCHOLAR THOMAS MANN PARADOXICALLY IT DOESN'T LOOK SO AWFUL TO MR. ENGLISH'S LARGELY RURAL CONSTITUENCY STATE CORPORATION COMMISSIONER BOB ANTHONY MR. ENGLISH'S REPUBLICAN OPPONENT IN A BITTER NINETEEN NINETY TWO CAMPAIGN DECLINES TO CRITICIZE THE MOVE AND CALLS HIS FORMER RIVAL QUOTE PRETTY POPULAR QUOTE THOUGH ONE G. O. P. STATE LEGISLATOR SAYS MR. ENGLISH SHOULD HELP FINANCE THE TWO HUNDRED FIFTY THOUSAND DOLLAR PLUS COST OF THE MAY TENTH SPECIAL ELECTION TO REPLACE HIM MR. ENGLISH HASN'T CAUGHT MUCH FLAK FROM OKLAHOMANS MANY OF MR. ENGLISH'S ERSTWHILE COLLEAGUES AWARE THAT UNHAPPY VOTERS COULD SOON SEND THEM JOB HUNTING ARE ENVIOUS MR. LEWIS'S BARBS NOTWITHSTANDING THE NEW JOB OFFERS A HANDSOME SALARY AND BENEFITS WITHOUT THE GREATER STIGMA THAT ATTACHES TO ALL PURPOSE LOBBYISTS FOR HIRE IT'S SORT OF A NATURAL EXTENSION OF HIS PUBLIC POLICY WORK SAYS RETIRING MINNESOTA DEMOCRATIC REPRESENTATIVE TIM PENNY A DEFICIT HAWK WHO CLASHED WITH MR. ENGLISH OVER BUDGET ISSUES WHILE SERVING ON THE OKLAHOMAN'S SUBCOMMITTEE BY CONTRAST MR. PENNY SAYS MANY EX LAWMAKERS END UP LANDING THESE CUSHY JOBS THAT HAVE LITTLE TO DO WITH THEIR DISTRICTS OR WHY THEIR CONSTITUENTS SENT THEM HERE FOR SOME MR. ENGLISH'S DEPARTURE SAYS LESS ABOUT THE REVOLVING DOOR THAN IT DOES ABOUT THE DIMINISHED ATTRACTIVENESS OF LIFE IN TODAY'S CONGRESS SINCE NINETEEN NINETY INCREASING NUMBERS OF BATTLE WEARY INCUMBENTS HAVE DECIDED TO RETIRE MR. ENGLISH ISN'T THE FIRST TO LEAVE IN MIDTERM A YEAR AGO REPUBLICAN WILLIS GRADISON RESIGNED HIS OHIO HOUSE SEAT AND A KEY ROLE IN THE CONGRESSIONAL HEALTH CARE DEBATE TO ACCEPT THE LEADERSHIP OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA FOR HIS PART MR. ENGLISH FIFTY THREE YEARS OLD WON'T MISS THE PUBLIC ENVIRONMENT IN WHICH THE WHOLE THING IS TO TRASH THE CONGRESS AND EVERYONE CONNECTED TO IT I THINK IT'S DOING LONG TERM DAMAGE TO OUR SYSTEM ON TOP OF THIS NEGATIVE DRUMBEAT HE SAYS THE MOUNTING FOCUS ON DEFICIT REDUCTION MADE THE SECOND DECADE OF HIS CAREER AS AN ADVOCATE OF RURAL DEVELOPMENT FAR MORE FRUSTRATING THAN THE FIRST THOUGH HE SAYS HE WASN'T LOOKING FOR A WAY OUT HE JUMPED AT THE CHANCE WHEN THE TRADE GROUP APPROACHED HIM IF I'M GOING TO HELP PEOPLE FROM MY HOMETOWN I'M NOT GOING TO BE ABLE TO DO IT FROM THE ENVIRONMENT CREDIT AND RURAL DEVELOPMENT SUBCOMMITTEE MR. ENGLISH INSISTS QUOTE THE FEDERAL GOVERNMENT ISN'T GOING TO BE WHERE THE ACTION IS IF I THOUGHT THERE WAS A CHANCE IN THE WORLD WE COULD GET NEW RESOURCES FOR RURAL DEVELOPMENT I'D STILL BE SITTING IN CONGRESS THE JOB IN CONGRESS IS GETTING LESS AND LESS FUN SAYS MR. BERGLAND WHO SERVED IN THE HOUSE FROM NINETEEN SEVENTY ONE UNTIL NINETEEN SEVENTY SEVEN MR. BERGLAND ACKNOWLEDGES THE REVOLVING DOOR'S POTENTIAL FOR CORRUPTION OF GOVERNMENT HE SAYS MR. ENGLISH WHO WILL OVERSEE THE ASSOCIATION'S THREE MILLION DOLLARS LOBBYING BUDGET AND POLITICAL ACTION COMMITTEE A RELATIVELY SMALL PORTION OF THE GROUP'S OVERALL ACTIVITIES WILL STRICTLY OBSERVE THE ONE YEAR COOLING OFF PERIOD IN WHICH EX LAWMAKERS ARE PROHIBITED FROM CONTACTING FORMER COLLEAGUES ABOUT LEGISLATION THEN AGAIN HE ARGUES THAT THE SPECTER OF EX HOUSE MEMBERS FLOWING THROUGH CAPITOL HALLWAYS LOOKS WORSE THAN IT IS THERE'S NO SUCH THING MR. BERGLAND SAYS AS A POWERFUL HAS BEEN A POWERFUL GEOMAGNETIC DISTURBANCE CRIPPLED TWO CANADIAN COMMUNICATIONS SATELLITES DISRUPTING TELEVISION AND RADIO TRANSMISSIONS AND NUMEROUS OTHER SERVICES THROUGHOUT THE COUNTRY ONE SATELLITE HASN'T YET RESPONDED TO INSTRUCTIONS BEAMED FROM EARTH AND MAY HAVE TO BE WRITTEN OFF AS SPACE JUNK THE OTHER WAS REPAIRED THURSDAY NIGHT THE SATELLITES KNOWN AS ANIK E. ONE AND ANIK E. TWO ARE OPERATED BY TELESAT CANADA WHICH IS CONTROLLED BY CANADA'S MAJOR TELEPHONE COMPANIES THE INCIDENT HAS RAISED CONCERNS ABOUT THE RELIABILITY OF SATELLITE COMMUNICATIONS ON WHICH MANY INDUSTRIES NOW RELY THE DISTURBANCE SENT A POWERFUL BURST OF STATIC ELECTRICITY SURGING THROUGH THE SATELLITES STATIC ELECTRICITY QUOTE CAN BE THE KILLER OF ANY SATELLITE QUOTE SAID EARL MAIN AN INTELSAT ENGINEER INTELSAT IS A GLOBAL SATELLITE BROADCASTING CONSORTIUM STATIC ELECTRICITY HAS PREVIOUSLY INTERRUPTED SATELLITE SERVICE BUT THE DAMAGE HAS NEVER BEEN AS EXTENSIVE AS THAT INCURRED BY ANIK E. ONE AND E. TWO TELESAT OFFICIALS SAID A FAILURE OF THIS MAGNITUDE IS UNPAR ALLELED IN THE SATELLITE INDUSTRY THE INCIDENT KNOCKED OUT POWER TO THE ANIK E. ONE AND E. TWO'S MOMENTUM FLYWHEELS THAT KEEP THE SATELLITES POINTING IN THE RIGHT DIRECTION TELESAT OFFICIALS SAID THE GEOMAGNETIC DISTURBANCE WAS ONE HUNDRED TIMES GREATER THAN ANY OTHER PREVIOUSLY DETECTED THEY SAID THAT THEY BELIEVE THE PROBLEM WASN'T CAUSED BY DEFECTIVE EQUIPMENT THE FLYWHEELS WERE BUILT BY GENERAL ELECTRIC COMPANY'S AEROSPACE DIVISION WHICH WAS ACQUIRED LAST YEAR BY MARTIN MARIETTA CORPORATION THE ANIK SATELLITES ARE USED BY MAJOR TELEVISION AND RADIO BROADCASTERS DEPARTMENT STORES BANKS HOTEL CHAINS TELEPHONE COMPANIES AND MANUFACTURERS BY LATE YESTERDAY MOST DISRUPTED SERVICES HAD BEEN RESTORED AS A RESULT OF TELESAT REROUTING SERVICE ONTO OTHER SATELLITES THE SATELLITE FAILURE BLANKED OUT TELEVISION SERVICE TO SOME PARTS OF THE COUNTRY IN MAJOR CANADIAN CITIES THE BROADCASTERS RE ESTABLISHED TRANSMISSION QUICKLY BY SWITCHING TO UNDERGROUND FIBER OPTIC CABLE BUT IN MORE REMOTE AREAS INCLUDING NORTHERN CANADA TRANSMISSION WAS INTERRUPTED FOR HOURS TELEPHONE SERVICE IN PARTS OF NORTHERN CANADA WAS DISRUPTED UNTIL TELEPHONE COMPANIES WERE ABLE TO SWITCH TO GROUND LINES CANADIAN PRESS THE COUNTRY'S BIGGEST NEWS SERVICE WASN'T ABLE TO TRANSMIT DATA FOR MORE THAN SEVEN HOURS THURSDAY TO MORE THAN ONE HUNDRED NEWSPAPERS AND FOUR HUNDRED RADIO STATIONS FOR A WHILE IT LOOKED LIKE A DOOMSDAY SCENARIO SAID JIM POLING A CANADIAN PRESS VICE PRESIDENT THE INCIDENT WILL BE COSTLY FOR TELESAT THE ANIK E. TWO SATELLITE WHICH IS STILL OUT OF SERVICE ISN'T INSURED AND TELESAT FEARS IT MAY FACE A WRITE OFF OF THREE HUNDRED MILLION CANADIAN DOLLARS TWO HUNDRED TWENTY EIGHT POINT EIGHT MILLION U. S. DOLLARS IF IT CAN'T BE REPAIRED WHEN THE ELEPHANT STUMBLES NOT ALL THE ANTS GET CRUSHED LAST WEEK'S DISAPPOINTING EARNINGS NEWS FROM MICROCHIP GIANT INTEL CORPORATION MAY HAVE SENT TREMORS THROUGHOUT THE TECHNOLOGY SECTOR BUT FEW MONEY MANAGERS WHO PLAY AMONG SMALL CAPITALIZATION TECHNOLOGY ISSUES ARE RUNNING FOR COVER INDEED SOME MARKET PROS STRONGLY BELIEVE THAT AN ARRAY OF SMALL CAP TECHNOLOGY ISSUES PARTICULARLY IN THE COMPUTER NETWORKING SEMICONDUCTOR AND TELECOMMUNICATIONS FIELDS CAN EASILY WEATHER THE EFFECTS OF INTEL'S DISAPPOINTING NEWS AND MOVE HIGHER THOSE MONEY MANAGERS AND ANALYSTS FIGURE THAT A MILD CORRECTION IN SOME OF THE SMALLER TECH STOCKS IS HEALTHY BECAUSE MANY OF THE GROUP'S ISSUES HAVE BEEN TRADING AT OR NEAR RECENT FIFTY TWO WEEK HIGHS BUY ON DIPS THEY RECOMMEND QUOTE WITH INTEL MISSING EARNINGS ESTIMATES BY FOUR CENTS A SHARE YOU CAN'T SAY IT'S LIGHTS OUT FOR TECHNOLOGY QUOTE ASSERTS ROLAND GILLIS SENIOR PORTFOLIO MANAGER FOR KEYSTONE CUSTODIAN FUND'S S. FOUR FUND IN BOSTON MONEY MANAGERS SUCH AS MR. GILLIS SUGGEST THAT SMALL CAP COMPANIES IN THE ADVANCED ELECTRONIC SLASH INFORMATION TECHNOLOGY ARENA ARE STRONGLY POSITIONED TO POST SUSTAINED EARNINGS GROWTH A PREREQUISITE FOR MAINTAINING INVESTOR INTEREST IN AN EARNINGS DRIVEN MARKET BUT NOBODY'S RECOMMENDING THROWING CAUTION TO THE WIND THE FACT THAT INTEL A SANTA CLARA CALIFORNIA BEHEMOTH COULD TUMBLE FOUR AND THREE QUARTERS LAST WEDNESDAY AFTER COMING UP SHORT OF ANALYSTS' ONE DOLLAR AND THIRTY NINE CENTS CONSENSUS EARNINGS FORECAST FOR THE FOURTH QUARTER POINTS UP THE SENSITIVITY OF TECH STOCKS BIG OR SMALL TO EARNINGS DISAPPOINTMENTS INTEL'S STOCK INFACT HAS RECOVERED SOMEWHAT CLIMBING ONE AND ONE QUARTER THURSDAY AND ONE AND THREE EIGHTHS FRIDAY TO CLOSE AT SIXTY FIVE AND ONE EIGHTH THE TRICK SAY MONEY MANAGERS IS TO PICK SELECTIVELY AND HOLD FOR THE LONG TERM SAYS DREW PECK A SEMICONDUCTOR ANALYST WITH COWEN AND COMPANY IN BOSTON NERVOUS INVESTORS CAN'T REALLY SELL ENTIRE GROUPS AT THIS POINT BECAUSE THERE ARE SO FEW OTHER OPTIONS SO YOU'RE SEEING THE DISSECTION OF INDIVIDUAL STOCKS THAT DISAPPOINT THANKFULLY HE SAYS THOSE ALLEGED DISAPPOINTMENTS HAVE GENERALLY BEEN PRETTY MINOR OVERALL THE OUTLOOK FOR THE SEMICONDUCTOR INDUSTRY IS QUITE BRIGHT BECAUSE OF THE EXPANDING CONSUMER ELECTRONIC AND TELECOMMUNICATIONS SECTORS SAYS MR. PECK BUT DON'T LOOK FOR BARN BURNERS HE CAUTIONS MANY OF THESE STOCKS HAD A BIG NINETEEN NINETY THREE RUN AND AS A CONSEQUENCE THE UPSIDE FOR THE GROUP MAY BE LIMITED WE'RE ALREADY SEEING MORE SELECTIVITY AMONG INVESTORS THAT HOLDS TRUE NOT ONLY FOR SEMICONDUCTORS BUT THE BROAD RANGE OF SMALL CAP TECH COMPANIES SAVVY INVESTORS SAY MR. GILLIS THE KEYSTONE FUND MANAGER LIKES TWO COMPANIES ENGAGED IN THE COMPUTER NETWORKING BUSINESS THREE COM CORPORATION OF SANTA CLARA CALIFORNIA AND CHIPCOM OF SOUTHBOROUGH MASSACHUSETTS WHAT ATTRACTS HIM TO THREE COM A LOW COST PROVIDER OF NETWORKING ADAPTER BOARDS DEVICES THAT CONNECT PERSONAL COMPUTERS TO A NETWORK IS THE COMPANY'S ABILITY QUOTE TO GROW IN A LOW MARGIN MARKETPLACE TO INTRODUCE NEW PRODUCTS AND MORE RECENTLY TO MOVE INTO HIGHER MARGIN BUSINESSES QUOTE SUCH AS THE NETWORKING ROUTER AND HUB MARKETS MR. GILLIS FAVORS CHIPCOM IN WHICH HIS FUND HOLDS MORE THAN THREE HUNDRED THOUSAND SHARES BECAUSE THE COMPANY OPERATES IN ONE OF THE FASTEST GROWING PRODUCT LINES IN TELECOMMUNICATIONS THE HUB MARKET HUBS ARE INTELLIGENT SWITCHING SYSTEMS OR WHAT AMOUNT TO ELECTRONIC TRAFFIC COPS FOR NETWORKS AND TEND TO BE HIGHER PROFIT MARGIN PRODUCTS CHIPCOM HE SAYS MAY SEE ITS EARNINGS GROW AS MUCH AS FORTY PERCENT THIS YEAR TO TWO DOLLARS A SHARE WHILE CHIPCOM'S STOCK IS TRADING AT A RICH MULTIPLE OF NEARLY FORTY FOUR TIMES TRAILING EARNINGS ITS MULTIPLE RELATIVE TO EXPECTED GROWTH IS LOW MR. GILLIS SAYS WHAT ALSO HOLDS HIS INTEREST IS THE FACT THAT INTERNATIONAL BUSINESS MACHINES HAS BEEN SUCCESSFULLY MARKETING CHIPCOM'S CORE PRODUCT THROUGH A JOINT VENTURE COMPUTER NETWORKING STOCKS INCLUDING THREE COM ALSO FIGURE PROMINENTLY IN THE HOT SELIGMAN COMMUNICATIONS AND INFORMATION FUND LAST YEAR'S BEST PERFORMING PORTFOLIO OUT OF TWENTY SCIENCE AND TECHNOLOGY STOCK FUNDS ACCORDING TO RANKINGS BY LIPPER ANALYTICAL SERVICES THE ONE HUNDRED TWELVE MILLION DOLLAR ASSET FUND WAS UP THIRTY FIVE POINT SEVEN PERCENT LAST YEAR AND IS UP SEVEN PERCENT SO FAR THIS YEAR PAUL WICK THE PORTFOLIO'S NEW YORK BASED MANAGER SAYS HE WANTS TO BE INVESTED IN COMPANIES THAT HAVE STRONG SECULAR GROWTH AND HAVE LARGELY PROPRIETARY PRODUCTS SO THAT CLIENTS CANNOT EASILY GO TO COMPETING VENDORS FOR ESSENTIALLY THE SAME ITEM HE'S THEREFORE AVOIDING SUCH BANGED UP SECTORS AS COMPUTER DISK DRIVE MAKERS AND P. C. MAKERS WHICH ARE SUFFERING FROM OVERCAPACITY AND VICIOUS PRICE WARS IN ADDITION TO THREE COM HE HOLDS STAKES IN A HANDFUL OF NETWORKING AND RELATED SOFTWARE COMPANIES STANDARD MICROSYSTEMS A MANUFACTURER OF LOCAL AREA NETWORK EQUIPMENT XYPLEX A PRODUCER OF DATACOMMUNICATIONS NETWORK SYSTEMS AND FTP SOFTWARE BUT THE BULK OF THE SELIGMAN TECHNOLOGY PORTFOLIO IS COMPRISED OF SMALL CAP MICROCHIP MAKERS AND MICROCHIP EQUIPMENT MANUFACTURERS THESE STOCKS ARE NOTORIOUSLY VOLATILE BUT PEOPLE ARE GOING TO JUST HAVE TO LIVE WITH THAT VOLATILITY IF THEY FEEL ANY KIND OF CONVICTION ABOUT THE POSITIVE SECULAR TRENDS INFLUENCING THE INDUSTRY HE SAYS ONE IMPORTANT TREND HE ASSERTS IS GROWING DEMAND FOR EMBEDDED INTELLIGENCE CHIPS USED IN ANTILOCK BRAKE SYSTEMS VIDEO GAMES REMOTE CONTROL DEVICES AND THE LIKE THREE FAVORITES ZILOG INCORPORATED DALLAS SEMICONDUCTOR AND MICROCHIP TECHNOLOGY QUOTE ALL THREE HAVE PROPRIETARY PRODUCTS WHICH ENABLES THEM TO HAVE ABOVE AVERAGE PROFIT MARGINS QUOTE AMONG SMALL CAP CHIP SUPPLIERS TO THE PORTABLE ELECTRONICS INDUSTRY MR. WICK FAVORS MAXIM INTEGRATED PRODUCTS A SUNNYVALE CALIFORNIA COMPANY THAT HAS HAD THIRTY PERCENT COMPOUNDED EARNINGS GROWTH FOR THE PAST FOUR YEARS WHAT MAXIM'S PRODUCTS DO IS MAXIMIZE BATTERY POWER IN BATTERY INTENSIVE PORTABLE ELECTRONIC DEVICES SUCH AS CELLULAR PHONES AND PORTABLE P. C.S HE SAYS MAXIM HE NOTES HAS HAD THIRTY CONSECUTIVE QUARTERS OF HIGHER REVENUE AND EARNINGS AS FOR CHIP EQUIPMENT MAKERS MR. WICK IS BULLISH ON ASYST A SMALL MANUFACTURER OF ROBOTIC ARM EQUIPMENT USED IN MINIATURE CLEAN ROOM ENVIRONMENTS LAM RESEARCH WHICH MAKES ETCHING EQUIPMENT USED FOR THE PRODUCTION OF ADVANCED SEMICONDUCTORS AND COGNEX WHICH PRODUCES MACHINE VISION SYSTEMS THAT INSPECT FOR QUALITY CONTROL IN CHIP PRODUCTION CELADON GROUP INCORPORATED AN INTERNATIONAL FREIGHT CONCERN SURGED TO SEVENTEEN AND ONE HALF FROM ITS OFFERING PRICE OF FOURTEEN DOLLARS AND FIFTY CENTS MR. COFFEE INCORPORATED BEDFORD HEIGHTS OHIO JUMPED TWO AND ONE QUARTER TO FOURTEEN THE COMPANY SAID IT HAS RECEIVED AN OFFER TO DISCUSS A POSSIBLE BUSINESS COMBINATION WITH A POTENTIAL BUYER FURTHER DETAILS WEREN'T DISCLOSED ELDEC CORPORATION LYNNWOOD WASHINGTON ROSE ONE AND ONE HALF TO NINE AND ONE QUARTER THE MAKER AND DESIGNER OF ELECTRONIC AND ELECTROMECHANICAL PRODUCTS SAID IT HAS BEEN APPROACHED BY SEVERAL COMPANIES THAT HAVE EXPRESSED AN INTEREST IN ACQUIRING ELDEC THE RUSSELL TWO THOUSAND INDEX CLIMBED TO ITS EIGHTH STRAIGHT CLOSING HIGH RISING ZERO POINT FOUR THREE POINT OR ZERO POINT ONE SIX PERCENT TO END AT TWO HUNDRED SIXTY THREE POINT EIGHT OH THE INDEX CHARTS THE PERFORMANCE OF SMALL CAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES DURING HIS VISIT HERE LAST WEEK U. S. TREASURY SECRETARY LLOYD BENTSEN URGED CHINA TO MOVE SWIFTLY TO DAMP THIS NATION'S SMOLDERING INFLATION AND FOR GOOD REASON THE GREATEST RISK TO CHINA'S PASSAGE FROM STATE RUN TO MARKET ECONOMY IS INFLATION IT COULD STALL REFORM MEASURES OR SEND THE RED HOT ECONOMY INTO A TAILSPIN WITH POTENTIALLY DIRE CONSEQUENCES FOR CHINA'S INTERNAL STABILITY AND FOR U. S. INVESTORS HERE BOTH THE WORLD BANK AND THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT HAVE WARNED RECENTLY THAT EXPLOSIVE MONEY SUPPLY GROWTH AND EASY CREDIT IN CHINA THREATEN TO IGNITE INFLATION IN SOME CITIES CONSUMER PRICES ALREADY ARE TWENTY PERCENT OR MORE ABOVE LEVELS OF A YEAR AGO IN PART BECAUSE OF SUCH CONCERNS THE U. S. WANTS TO HELP CHINA FIND NEW WAYS TO MANAGE ITS COMPLEX ECONOMY FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN IS PLANNING A TRIP TO BEIJING AND SECRETARY BENTSEN HAS OFFERED TO SEND INTERNAL REVENUE SERVICE ADVISERS TO HELP CHINA BETTER COLLECT TAXES MR. BENTSEN ALSO PROMISED TO MAKE STABLE CHINESE GROWTH A FOCUS OF REGULAR BILATERAL TALKS IT IS NO SURPRISE THAT CHINA'S ECONOMY IS GETTING ATTENTION AFTER RACING ALONG AT AN AVERAGE GROWTH RATE OF NINE POINT FIVE PERCENT A YEAR FOR THE PAST DECADE CHINA'S REFORM DRIVEN ECONOMY IS BY SOME MEASURES THE WORLD'S THIRD LARGEST LAST YEAR BY CHINA'S RECKONING SOME TWENTY BILLION DOLLARS WAS INVESTED IN THE COUNTRY BY OUTSIDE INTERESTS THE ASIAN GIANT ALSO IS A BIG BORROWER IT HAS ABOUT SEVENTY THREE BILLION DOLLARS IN FOREIGN DEBT AND THIS YEAR PLANS TO SOLICIT ANOTHER ONE BILLION DOLLARS IN NEW YORK IN NINETEEN NINETY THREE THE COUNTRY ALSO SUCKED IN GOODS VALUED AT ONE HUNDRED FOUR BILLION DOLLARS EVERYTHING FROM SATELLITES AND SUPERCOMPUTERS TO AUTOMOBILES AND MACHINE TOOLS ITS EXPORTS SUCH AS RAW MATERIALS TEXTILES AND CONSUMER ELECTRONICS WERE VALUED AT NINETY TWO BILLION DOLLARS INFLATION COULD THROW A WRENCH INTO THIS HUMMING ECONOMIC ENGINE HIGHER PRICES MAKE IT INITIALLY MORE EXPENSIVE FOR OUTSIDERS TO SOURCE GOODS IN CHINA AND CHRONICALLY COSTLIER FOR CONSUMERS HERE TO BUY FOREIGN PRODUCTS THAT EVENTUALLY COULD LEAD TO A DEVALUATION OF THE CHINESE YUAN OR ERODE CHINA'S HARD CURRENCY HOLDINGS AND LIMIT IMPORTS ESPECIALLY BIG TICKET INFRASTRUCTURE ITEMS NECESSARY FOR DEVELOPMENT QUOTE INFLATION IS PROBABLY THE KEY CONCERN IN CHINA QUOTE SAYS NED HALL A VICE PRESIDENT OF A. E. S. CHINA GENERATING COMPANY A U. S. VENTURE THAT PLANS TO INVEST AS MUCH AS TWO BILLION DOLLAR BUILDING A TWO THOUSAND ONE HUNDRED MEGAWATT POWER PLANT IN CENTRAL CHINA SO CONCERNED IS A. E. S. ABOUT THE PROSPECT OF A DEVALUATION THAT IT WANTS A GUARANTEE FROM ITS CHINESE PARTNERS THAT THEY WILL BEAR ALL CURRENCY RISK TO REIN IN THE ECONOMY ZHU RONGJI CHINA'S VICE PREMIER AND CENTRAL BANK CHIEF HAS TRIED TO CLAMP DOWN ON LENDING AND BAN FRIVOLOUS INVESTMENTS HE IS ATTEMPTING TO RESTRUCTURE CHINA'S FINANCIAL SYSTEMS TO MARSHAL AND ALLOCATE FUNDS MORE EFFICIENTLY WITHOUT RESORTING TO THE INFLATIONARY PATH OF PRINTING MORE MONEY COMPLEX HARD TO COLLECT TAXES HAVE BEEN REPLACED WITH A SIMPLIFIED VALUE ADDED TAX OF ABOUT SEVENTEEN PERCENT WHAT HAD BEEN AN AWKWARD INEFFICIENT FOREIGN EXCHANGE RATE HAS BEEN UNIFIED INTO A SINGLE MARKET DRIVEN RATE AND STATE BANKS ARE BEING TRANSFORMED INTO COMMERCIAL ONES AT THE SAME TIME THE GOVERNMENT IS TRYING TO CUT ITS ROLE IN INDUSTRY AND MAKE MORE ENTERPRISES RESPONSIBLE FOR THEMSELVES IT ALSO AIMS TO LIFT PRICE CONTROLS IN SENSITIVE AREAS LIKE OIL COAL AND TRANSPORT THE MEASURES MAY RESULT IN GREATER UNEMPLOYMENT JUST AS BASIC COMMODITIES ARE GETTING PRICIER FOR THAT REASON BEIJING HAS ALSO ALREADY INDICATED IT WILL SUBSIDIZE SOME INDUSTRIES TO SOFTEN THE TRANSITION THE PROBLEM IS THE GOVERNMENT WANTS HIGH GROWTH AND NOT HIGH INFLATION SAYS A BEIJING ECONOMIST FOR EXAMPLE JUST A FEW MONTHS INTO AN AUSTERITY PROGRAM MR. ZHU LAUNCHED LAST YEAR TO AMONG OTHER THINGS FIGHT INFLATION OTHER OFFICIALS INCLUDING DENG XIAOPING INDICATED THEY FAVORED FASTER GROWTH OVER CAUTION IF THERE ARE SOME PROBLEMS LET THERE BE SOME PROBLEMS HE'S VERY CLEAR ABOUT THIS SAYS FAN GANG AN ECONOMIST REFERRING TO MR. DENG ALARMED THE CENTRAL GOVERNMENT HAS REIMPOSED PRICE CONTROLS ON TWENTY SEVEN KEY COMMODITIES AND NOW WARNS AGAINST PROFITEERING TO GET THE MESSAGE OUT CHINESE PRESIDENT JIANG ZEMIN AND OTHER OFFICIALS HAVE MADE PERSONAL SPOT CHECKS AT MARKETS IN BEIJING BUT THEY MAY HAVE TO TAKE STRONGER MEASURES PRIVATE FORECASTERS HAVE WARNED THAT IF THE ECONOMY STAYS ON ITS CURRENT TRACK THE INFLATION RATE THIS YEAR WILL RISE STUDENT LOAN CORPORATION SAID FOURTH QUARTER NET INCOME FELL FOUR POINT EIGHT PERCENT MAINLY DUE TO A DECLINE IN NET INTEREST MARGIN FOR THE QUARTER THE PITTSFORD N. Y. ORIGINATOR OF STUDENT LOANS SAID NET INCOME FELL TO FIFTEEN POINT ONE MILLION DOLLARS OR SEVENTY FIVE CENTS A SHARE FROM THE YEAR EARLIER QUARTER'S FIFTEEN POINT EIGHT MILLION DOLLARS OR SEVENTY NINE CENTS A SHARE REVENUE ROSE FIVE POINT NINE PERCENT TO THIRTY SIX POINT SEVEN MILLION DOLLARS FROM THIRTY FOUR POINT SIX MILLION DOLLARS FOR THE YEAR THE COMPANY WHICH IS EIGHTY PERCENT OWNED BY CITICORP'S CITIBANK UNIT POSTED A TWENTY SIX PERCENT INCREASE IN NET INCOME TO SIXTY FOUR POINT SEVEN MILLION DOLLARS OR THREE DOLLARS AND TWENTY THREE CENTS A SHARE FROM A YEAR EARLIER FIFTY POINT NINE MILLION DOLLARS OR TWO DOLLARS AND FIFTY FIVE CENTS A SHARE THE GAIN REFLECTED PRIMARILY AN INCREASE IN THE STUDENT LOAN PORTFOLIO REVENUE ROSE TWENTY SEVEN PERCENT TO ONE HUNDRED FORTY SEVEN POINT EIGHT MILLION DOLLARS FROM ONE HUNDRED SIXTEEN POINT NINE MILLION DOLLARS B.A.TT INDUSTRIES P. L. C. SAID IT WILL REORGANIZE ITS U. S. TOBACCO SUBSIDIARY BROWN AND WILLIAMSON RESULTING IN A CHARGE AGAINST NINETEEN NINETY THREE EARNINGS OF APPROXIMATELY FORTY FIVE MILLION POUNDS SIXTY SEVEN POINT FOUR MILLION DOLLARS BROWN AND WILLIAMSON WILL CUT SEVEN HUNDRED OF ITS CURRENT FIVE THOUSAND THREE HUNDRED JOBS IN THE U. S. A B.A.TT SPOKESMAN SAID THE CUTS WILL INCLUDE A TWENTY FIVE PERCENT DECLINE IN SALES STAFF AND A TWENTY PERCENT REDUCTION OF ADMINISTRATIVE STAFF AT ITS LOUISVILLE KENTUCKY HEADQUARTERS B.A.TT SAID THE COMPANY WAS QUOTE COMING UP WITH A VERY RADICAL INCENTIVE PROGRAM FOR THE SALES STAFF QUOTE THAT FOCUSED MORE ON GETTING THE PRODUCTS TO THE CUSTOMERS RATHER THAN MERELY TO THE STORES THE SPOKESMAN WOULDN'T ELABORATE THE REORGANIZATION WHICH THE COMPANY EXPECTS TO COMPLETE BY LATE SPRING ONLY AFFECTS U. S. TOBACCO SALES THE SPOKESMAN SAID IN THE U. S. BROWN AND WILLIAMSON SELLS SEVERAL MAJOR CIGARETTE BRANDS INCLUDING KOOL CAPRI AND VICEROY INTERNATIONALLY IT ALSO SELLS KENT AND LUCKY STRIKE TESORO PETROLEUM CORPORATION SAN ANTONIO REPORTED PRELIMINARY EARNINGS OF ONE DOLLAR A SHARE FOR THE FOURTH QUARTER COMPARED WITH A NET LOSS OF ONE DOLLAR AND NINETY THREE CENTS A SHARE A YEAR EARLIER NET INCOME WAS SIXTEEN POINT SIX MILLION DOLLARS ON REVENUE OF TWO HUNDRED SEVEN MILLION DOLLARS COMPARED WITH A NET LOSS OF TWENTY FOUR POINT NINE MILLION DOLLARS ON REVENUE OF TWO HUNDRED THIRTY SIX MILLION DOLLARS A YEAR EARLIER THE YEAR AGO RESULTS INCLUDE CHARGES OF SEVENTEEN POINT FIVE MILLION DOLLARS FROM ACCOUNTING CHANGES FOR THE YEAR THE OIL AND GAS COMPANY REPORTED EARNINGS OF SEVENTEEN MILLION DOLLARS OR FIFTY FOUR CENTS A SHARE ON REVENUE OF EIGHT HUNDRED THIRTY FIVE MILLION DOLLARS IN NINETEEN NINETY TWO IT HAD A NET LOSS OF SIXTY FIVE POINT NINE MILLION DOLLARS OR FIVE DOLLARS AND THIRTY FOUR CENTS A SHARE ON REVENUE OF NINE HUNDRED FIFTY FOUR MILLION DOLLARS FOR THE YEAR THE COMPANY REPORTED A GAIN OF EIGHT MILLION DOLLARS FROM REDUCED EXPENSES FOR INCOME TAX AND RELATED INTEREST WHILE REPORTING CHARGES OF TWENTY POINT SIX MILLION DOLLARS FROM ACCOUNTING CHANGES AND NINETEEN POINT SIX MILLION DOLLARS FROM A CONTRACT SETTLEMENT COST REDUCTION PROGRAM AND EMPLOYEE TERMINATIONS CROSSBORDER TRANSACTIONS MAINLY ACQUISITIONS AND JOINT VENTURES REACHED A RECORD ONE HUNDRED FIFTY TWO BILLION DOLLARS LAST YEAR CLIMBING BY ALMOST TWENTY PERCENT FROM NINETEEN NINETY TWO AND THREE TIMES FROM NINETEEN NINETY LEVELS ACCORDING TO K. P. M. G. PEAT MARWICK THE ACCOUNTING AND CONSULTING FIRM ALSO FOUND THAT THE U. S. FOR THE SECOND YEAR IN A ROW INVESTED MORE MONEY ABROAD THAN FOREIGN BUSINESSES INVESTED HERE IN NINETEEN NINETY TWO AMERICAN FIRMS SENT FORTY BILLION DOLLARS OVERSEAS SIGNIFICANTLY MORE THAN THE THIRTY FOUR BILLION DOLLARS MOVING THE OPPOSITE WAY QUOTE THIS IS A SEA CHANGE QUOTE SAID STEPHEN BLUM K. P. M. G.'S NATONAL DIRECTOR OF CORPORATE FINANCE FOR SO MANY YEARS OUR COUNTRY WAS MORE OF A TARGET FOR DEAL DOERS NOW WITH OUR ADVANCED ECONOMIC RECOVERY OUR STRONG STOCK MARKETS AND STRENGTHENING DEBT MARKETS AND A RELATIVELY STRONG DOLLAR FIRMS HERE ARE BETTER POSITIONED TO REACH ABROAD THAN THEY HAVE BEEN FOR YEARS THE STUDY CONCLUDES THAT MORE CROSSBORDER INVESTMENTS ARE BEING MADE THROUGH JOINT VENTURES AND MINORITY INVESTMENTS THAN THROUGH MERGERS AND ACQUISITIONS THIS UNDERSCORES THE DOMINANCE OF STRATEGIC PLAYERS IN CONTRAST TO THE FINANCIALLY ORIENTED PURCHASERS OF THE LATE NINETEEN EIGHTIES MR. BLUM ASSERTED FOREIGN INVESTORS FOUND U. S. ELECTRICAL AND ELECTRONICS FIRMS PARTICULARLY ATTRACTIVE OTHER U. S. INDUSTRIES ATTRACTING FOREIGN CAPITAL IN NINETEEN NINETY THREE INCLUDED OIL AND GAS AND CHEMICALS AND PHARMACEUTICALS CAPITAL FLOWS ARE CONSTANTLY CHANGING COURSE AND THE STUDY CONFIRMED A NUMBER OF TRENDS JAPANESE CROSSBORDER INVESTMENTS WERE JUST FOUR BILLION DOLLARS LAST YEAR DOWN FROM AN AVERAGE ELEVEN BILLION DOLLARS IN NINETEEN NINETY ONE AND NINETEEN NINETY TWO CHINA AND RUSSIA HAVE ALSO BECOME FAVORED CAPITAL DESTINATIONS CAPTURING TWENTY TWO BILLION DOLLARS LAST YEAR ABOUT SIX TIMES MORE THAN THEY DID IN NINETEEN NINETY ONE BUT WHILE SOME THINGS CHANGE OTHERS STAY THE TIME THE U. S. AND BRITAIN ARE AS THEY ALMOST ALWAYS HAVE BEEN THE WORLD'S FAVORITE INVESTMENT TARGETS THE TWO NATIONS WERE ALSO MAJOR CAPITAL SOURCES LAST YEAR ACCOUNTING FOR SIXTY EIGHT BILLION DOLLARS IN OUTBOUND INVESTMENTS FORTY FIVE PERCENT OF THE WORLD WIDE TOTAL AT LAST COUNT RUBLES WERE TRADING AT TEN THOUSAND TO THE DOLLAR ON MOSCOW'S BLACK MARKET HERE IN THIS FROZEN OUTPOST YOU CAN'T GIVE THEM AWAY AT THE BOARD OF TRADE BAR RUBLES SERVE AS BEER COASTERS DOWN THE STREET AT MARUSKIYA'S STORE OWNER MARTY JAMES POINTS TO SHOE BOXES OF RUBLES AND MUTTERS ABOUT QUOTE THE POUNDING I TOOK ON THAT STUFF QUOTE A SIGN OUTSIDE THE MUSIC MART HAWKS TURBO GRAFX AND KOPECKS THE COMPUTER GAMES SELL THE RUSSIAN COINS DON'T LAMENTS THE STORE'S ERNA RASMUSSEN I DON'T KNOW HOW WE'LL EVER GET RID OF THEM FOLKS IN NOME INDEED THROUGHOUT ALASKA ARE STARTING TO VOICE SIMILAR CONCERNS ABOUT THE RUSSIANS THEMSELVES IN AN EXPERIMENT THAT WILL GO DOWN WAY DOWN IN THE HISTORY OF ECONOMIC BLUNDERS NOME MERCHANTS DECIDED A FEW YEARS BACK TO RECAST THIS OLD GOLD RUSH TOWN AS THE HUB OF RUSSO ALASKAN TRADE THE SIBERIAN BORDER A WESTWARD SEAGULL'S FLAP ACROSS THE BERING STRAIT HAD JUST BEEN OPENED AFTER FOUR DECADES OF TRULY COLD WAR RUSSIANS WERE STREAMING INTO ALASKA THROUGH THE SO CALLED ICE CURTAIN TO TASTE THE LONG FORBIDDEN FRUITS OF AMERICAN LIFE MAINLY SHOPPING FOR MANY NOME WAS THEIR FIRST STOP NOME MERCHANTS WANTED TO MAKE SURE THE RUSSIAN BUCK STOPPED HERE SO NO MATTER THAT AT THE TIME RUBLES WEREN'T CONVERTIBLE INTO HARD CURRENCY NOME STARTED ACCEPTING RUBLES AT THE CHARITABLE RATE OF ONE RUBLE TO THE DOLLAR THE COLD WAR MIGHT HAVE LEFT THE RUSSIANS NUMB BUT NOT DUMB THEY CAME IN HORDES RUBLES FLYING OUT OF THEIR POCKETS REALITY CAME TOO RUBLES JOINED THE WORLD CURRENCY MARKET NOW NOME IS UP TO ITS CIVIC EYEBALLS IN RUBLES WORTHLESS RUBLES AND A BIG CHILL HAS SETTLED OVER RUSSO ALASKAN RELATIONS FOR THE RUSSIAN INVASION HASN'T JUST INCLUDED KMART BOUND IVANS AND ENTREPRENEURIAL IGORS IT HAS ALSO BROUGHT LEGIONS OF FREELOADERS SAD SACKS MOBSTERS AND IF THE RUMORS ARE TO BE BELIEVED FORMER AGENTS OF THE K. G. B. AS WELL THEY STAY THEY MOOCH SOME OF THEM STEAL AND SCAM THEY ALSO ARE WEARING OUT THE WELCOME FOR THE MAJORITY OF LAW ABIDING RUSSIANS WHO COME ON LEGITIMATE BUSINESS THE BLOOM IS OFF THE RUSSIAN ROSE OBSERVES JIM STIMPFLE NOME'S ONLY REAL ESTATE AGENT THIS IS A STARTLING COMMENT FROM MR. STIMPFLE WHO DREAMED UP THE RUBLE EXCHANGE AND IS PERHAPS THE MOST VOCAL BOOSTER OF RUSSO ALASKAN RELATIONS AMONG OTHER THINGS HE IS PROMOTING AN ALASKA SIBERIA TUNNEL HE HAS PUT UP MORE THAN THIRTY RUSSIAN VISITORS AT HIS HOUSE IN THE PAST TWO YEARS BUT HE CAN'T PUT UP WITH MORE I HAD TO STOP BRINGING THEM HOME HE SAYS MY WIFE WAS GOING TO STRANGLE ME DAVE OLSON A NOME BASED PILOT RECALLS HOW A RUSSIAN HE HAD BARELY MET SHOWED UP AT HIS HOUSE ALONG WITH WIFE AND TODDLER FOR A PROPOSED TWO WEEK VISIT QUOTE THEN HE DUMPED THE WIFE AND KID WITH ME AND TOOK OFF FOR ANCHORAGE QUOTE MR. OLSON RECOUNTS SIX WEEKS LATER MR. OLSON FINALLY GOT A MESSAGE TO THE RUSSIAN GET BACK HERE GET YOUR FAMILY AND GET GOING YOU WANT TO EXTEND HOSPITALITY BUT YOU WIND UP FEELING TAKEN ADVANTAGE OF HE SAYS THE SHEER HAPLESSNESS OF SOME RUSSIAN VISITORS IS BEGINNING TO WEAR ON MANY ALASKANS SOMEHOW RUSSIANS ALWAYS SEEM TO END UP BROKE AND IN NEED OF RESCUE SAYS JON GIRARD AN ELECTRICIAN WHO HAS HOUSED MANY RUSSIANS HE CITES THE RUSSIAN SAILORS WHOSE LEAKY MOCK UP VIKING SHIPS ALMOST SANK DURING A JOINT COMMEMORATION OF THE TWO HUNDREDTH ANNIVERSARY OF EXPLORER VITUS BERING'S WANDERINGS THE RUSSIANS LISTED INTO ANCHORAGE PENNILESS ALASKANS HAD TO BAIL THEM OUT LAST YEAR A FOLK DANCE TROUPE RAN OUT OF MONEY AND HAD TO BE RESCUED BY ANCHORAGE CHURCH GROUPS SOME OF THESE PROBLEMS REFLECT CULTURAL DIFFERENCES FOR ONE THING THE RUSSIAN VIEW OF HOSPITALITY IS MORE EXPANSIVE THAN THE ALASKAN VIEW IF YOU TELL A RUSSIAN HE OUGHT TO DROP IN AND VISIT IF HE'S IN THE NEIGHBORHOOD YOU BETTER MEAN IT ADVISES KENT LEE WOODMAN HE'LL SOON BE ON YOUR DOORSTEP WITH FAMILY IN TOW AND SUCH DIFFERENCES ASIDE SOME ALASKANS ALSO TAKE PAINS TO NOTE THAT THE RUSSO ALASKAN EXPERIENCE HASN'T BEEN ALL BAD WHEN FOR EXAMPLE THE CIVIC CHOIR FROM MAGADAN A MAJOR SIBERIAN TOWN SANG GOD BLESS AMERICA AT THE ANCHORAGE CONVENTION CENTER A FEW YEARS BACK MANY ALASKANS IN THE AUDIENCE WERE SO TOUCHED THAT THEY WEPT ALASKAN RUSSIAN MARRIAGES ARE PROLIFERATING FIFTY SO FAR MR. WOODMAN PRESIDENT OF THE RUSSIAN ALASKAN FRIENDSHIP AND TRADE CENTER SAYS THE RUSSIANS ARE QUOTE WONDERFUL PEOPLE QUOTE HE SHOULD KNOW HE HAS HAD MORE THAN SIXTY RUSSIAN HOUSE GUESTS STILL NO ONE MAINTAINS THERE AREN'T TROUBLING ELEMENTS ESPECIALLY THE CROOKS WHEN THE BORDER OPENED UP IT OPENED UP FOR THE BAD GUYS AS WELL AS THE GOOD GUYS SAYS BURDENA PASENELLI UNTIL RECENTLY THE HEAD OF THE FEDERAL BUREAU OF INVESTIGATION'S ALASKA OFFICE SHE SAYS DETECTIVES ARE ON THE TRAIL OF VARIOUS RUSSIAN MAFIA AND RUMORED EX K. G. B. OPERATIVES INCLUDING A WALRUS TUSK SMUGGLING RING THAT THEY SUSPECT IS CONTROLLED BY EX K. G. B. MEN THE WALRUS IS FEDERALLY PROTECTED AND ITS TUSKS CAN'T BE SOLD OR IMPORTED THEN THERE ARE THE PETTY BUT ANNOYING CRIMINALS FOR THE THIRD CONSECUTIVE YEAR SEVERAL TEENAGE RUSSIAN HOCKEY PLAYERS WERE NABBED FOR SHOPLIFTING DURING ANCHORAGE'S WORLD JUNIOR HOCKEY LEAGUE TOURNAMENT IN A POSTSCRIPT THAT GALLS MANY ALASKANS THE PLAYERS WERE BAILED OUT BY TEAM OFFICIALS PERMITTED TO PLAY AND HUSTLED HOME BEFORE THEIR COURT DATES ATOP THAT ARE THE BLACK MARKETEERS WHO SWING INTO ACTION EVERY WEDNESDAY NIGHT WHEN THE WEEKLY AEROFLOT FLIGHT ARRIVES FROM MAGADAN THEY PACK THE TERMINAL BEARING HUGE PACKAGES HOPING TO BRIBE THE FLIGHT CREW TO TAKE STUFF BACK TO MAGADAN WHERE IT WILL BE SOLD ON THE BLACK MARKET AT HUGE MARKUPS AEROFLOT CREWMEMBERS ARE SAID TO GET MINIMAL STATIC FROM BORDER GUARDS BUT ON A RECENT WEDNESDAY NIGHT THE AEROFLOT PILOT RACES TO A WAITING CAB FENDING OFF THE THRONG COSTCO HE SHOUTS TO THE DRIVER COSTCO BEING A BIG DISCOUNT DEPARTMENT STORE THAT HAS BECOME A SORT OF MECCA FOR RUSSIAN VISITORS SUDDENLY THE CAB IS SURROUNDED BY SCREAMING RUSSIANS THE DRIVER LOOKS STRICKEN THE MOB EVENTUALLY LETS THE CAB PASS AFTER THE PILOT AGREES TO STOW AWAY MUCH OF THE HUSTLERS' CARGO IT'S LIKE THIS EVERY WEDNESDAY OBSERVES AN AIRPORT SECURITY GUARD SOMEBODY'S GOING TO GET TRAMPLED ONE OF THESE DAYS JIM ROWE OWNER OF BERING AIR A COMMUTER AIRLINE FEELS LIKE HE HAS ALREADY BEEN TRAMPLED HE MAY HAVE BEEN THE BIGGEST LOSER IN NOME'S RUBLE FIASCO ACCUMULATING NEARLY TWO HUNDRED THOUSAND RUBLES FERRYING RUSSIANS TO NOME NOW RUBLES ARE WORTHLESS HERE AND RUSSIAN AUTHORITIES FOR REASONS THAT AREN'T ENTIRELY CLEAR WON'T LET HIM SPEND THEM THERE MR. ROWE FIGURES HE IS OUT THOUSANDS OF MORE DOLLARS ON THE MANY FREE PASSAGES TO SIBERIA HE HAS GIVEN TO PENNILESS TICKETLESS RUSSIANS WHO SHOW UP AT THE NOME AIRPORT I KNOW I SHOULDN'T JUST GIVE SERVICE AWAY BUT WHAT ELSE CAN I DO HE ASKS CHIMES HIS WIFE CHRIS QUOTE IF WE DIDN'T FLY THEM BACK WE'D HAVE TO PUT THEM UP QUOTE SHE ROLLS HER EYES ADVANCED LOGIC RESEARCH INCORPORATED RETURNED TO PROFITABILITY IN ITS FISCAL FIRST QUARTER AFTER POSTING LOSSES FOR SEVERAL QUARTERS AMID A PERSONAL COMPUTER PRICE WAR THE IRVINE CALIFORNIA COMPANY WHICH MAKES MICROCOMPUTER SYSTEMS SAID IT EARNED FIVE HUNDRED TWENTY ONE THOUSAND DOLLARS OR FIVE CENTS A SHARE IN THE FIRST PERIOD ENDED DECEMBER THIRTY FIRST COMPARED WITH A NET LOSS OF ONE POINT EIGHT MILLION DOLLARS OR SIXTEEN CENTS A SHARE A YEAR AGO SALES CLIMBED SEVENTEEN PERCENT TO FORTY NINE POINT SIX MILLION DOLLARS FROM FORTY TWO POINT FIVE MILLION DOLLARS THE YEAR EARLIER LOSS INCLUDED AN ACCOUNTING RELATED NET CHARGE OF NINE HUNDRED THOUSAND DOLLARS OR EIGHT CENTS A SHARE THE CHARGE WAS TAKEN AFTER THE COMPANY'S INITIAL EARNINGS ANNOUNCEMENT FOR THE QUARTER A COMPANY SPOKESMAN SAID THE COMPANY ENDED ITS LOSS STREAK BY FOCUSING ON HIGHER MARGIN PRODUCTS AND SCALING BACK OPERATIONS IN NASDAQ STOCK MARKET TRADING ADVANCED LOGIC RESEARCH SHARES CLOSED AT FOUR POINT SIX TWO FIVE DOLLARS UP FIFTY CENTS GENENTECH INCORPORATED SAID IT FILED A PATENT INFRINGEMENT LAWSUIT IN HOUSTON FEDERAL COURT AGAINST TANOX BIOSYSTEMS INCORPORATED RELATED TO RESEARCH AND DEVELOPMENT OF ANTIBODIES TO INTERRUPT ALLERGIC REACTIONS THE SUIT FOLLOWS THE FILING OF A SIMILAR ACTION BY HOUSTON BASED TANOX IN TEXAS STATE COURT IN HOUSTON LAST DECEMBER TANOX ALLEGES IN COURT DOCUMENTS THAT GENENTECH QUOTE APPROPRIATED QUOTE ITS ANTIBODY INVENTION WHICH IT REVEALED TO GENENTECH IN NINETEEN EIGHTY NINE IN HOPES OF COLLABORATING UNDER A CONFIDENTIALITY AGREEMENT THE COMPANIES DID NOT COME TO TERMS AND TANOX CHOSE ANOTHER PARTNER TANOX ALLEGES GENENTECH BREACHED THEIR CONFIDENTIALITY AGREEMENT IN ITS LAWSUIT GENENTECH BASED IN SOUTH SAN FRANCISCO CALIFORNIA ALLEGES THAT TANOX'S PRODUCT INFRINGES ON PROCESSES IT PATENTED THE COMPANY ALSO ASSERTS THAT IT DID NOT VIOLATE THEIR CONFIDENTIALITY PACT AND THAT IT DERIVED ITS ANTIBODY TECHNOLOGY INDEPENDENTLY OF ITS TALKS WITH TANOX AMDAHL CORPORATION SUNNYVALE CALIFORNIA POSTED A NET LOSS OF FORTY POINT NINE MILLION DOLLARS OR THIRTY SIX CENTS A SHARE AS PROJECTED BY THE STRUGGLING MAKER OF MAINFRAME COMPUTERS AMDAHL'S FOURTH QUARTER LOSS COMPARED WITH NET INCOME OF TWO POINT FIVE MILLION DOLLARS OR TWO CENTS A SHARE A YEAR EARLIER SALES PLUNGED FORTY ONE PERCENT TO FOUR HUNDRED FORTY TWO POINT NINE MILLION DOLLARS FROM SEVEN HUNDRED FORTY FIVE MILLION DOLLARS FOR THE YEAR THE COMPANY HAD A MUCH WIDENED LOSS OF FIVE HUNDRED EIGHTY MILLION DOLLARS OR FIVE DOLLARS AND NINE CENTS A SHARE COMPARED WITH A LOSS OF SEVEN MILLION DOLLARS OR SIX CENTS A SHARE SALES WERE ONE POINT SIX EIGHT BILLION DOLLARS OFF THIRTY THREE PERCENT FROM TWO POINT FIVE TWO BILLION DOLLARS RESULTS FOR NINETEEN NINETY THREE INCLUDE AFTER TAX RESTRUCTURING CHARGES OF THREE HUNDRED NINETY FOUR POINT THREE MILLION DOLLARS OR THREE DOLLARS AND FORTY SIX CENTS A SHARE AND NINETEEN NINETY TWO'S RESULTS INCLUDE A CHARGE FOR LAYOFFS OF TWELVE POINT FIVE MILLION DOLLARS OR ELEVEN CENTS A SHARE AMDAHL IS ATTEMPTING TO SHIFT ITS PRODUCT MIX AS COMPANIES ARE TRADING MAINFRAMES FOR DESKTOP NETWORKS JAPAN IS ENTERING A PERIOD OF POLITICAL INSTABILITY THAT COULD HINDER POLICY MAKING WEAKEN THE ECONOMY FRUSTRATE THE U. S. AND PLAY HAVOC WITH TOKYO'S MARKETS THE STUNNING REJECTION BY PARLIAMENT FRIDAY OF LEGISLATION TO REFORM THE NATION'S POLITICAL SYSTEM WILL AGGRAVATE THE TURMOIL IN IMMEDIATE TERMS THE REJECTION HAS WOUNDED THE FRAGILE COALITION GOVERNMENT OF PRIME MINISTER MORIHIRO HOSOKAWA PERHAPS FATALLY BUT IN A WIDER PERSPECTIVE THE VOTE WASN'T THE CAUSE OF THE CHAOS ONLY THE MOST VIVID SYMPTOM OF JAPAN'S COLLAPSING POSTWAR POLITICAL ORDER ONE EARLY EFFECT OF THE TURMOIL WAS A SHARP FALL IN TOKYO STOCK PRICES MONDAY MORNING THE PARLIAMENTARY VOTE HAD BEEN TAKEN AFTER THE MARKET CLOSED ON FRIDAY AND ANALYSTS SAID OVER THE WEEKEND THAT THEY EXPECTED SHARES TO TUMBLE ON MONDAY AS INVESTORS LOWERED THEIR EXPECTATIONS FOR JAPAN'S FUTURE AT THE CLOSE OF THE MORNING SESSION THE BENCHMARK NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WAS DOWN FOUR POINT THREE PERCENT THE DEFEAT IN PARLIAMENT QUOTE IS AN EXAMPLE OF HOW WHEN A SYSTEM UNRAVELS IT'S VERY HARD TO HOLD ANY OF IT TOGETHER QUOTE SAID GERALD L. CURTIS AN EXPERT ON JAPANESE POLITICS AT COLUMBIA UNIVERSITY IN THE NEAR FUTURE THIS IS GOING TO CHARACTERIZE JAPANESE POLITICS LOTS OF SURPRISES LOTS OF UNSETTLING DEVELOPMENTS THE OUTLOOK FOR POLITICAL UNCERTAINTY IS NEW FOR JAPAN WHICH HAS BEEN GOVERNED BY ONE PARTY FOR NEARLY FOUR DECADES IT COULD HAMPER THE NATION IN EVERYTHING FROM ACHIEVING BUDGET SURPLUSES TO MANAGING ECONOMIC GROWTH ALREADY THE POLITICAL SITUATION HAS DELAYED THE TIMETABLE FOR ADDITIONAL ECONOMIC STIMULUS MEASURES AN INCOME TAX CUT AND THE BUDGET WITH THE POLITICAL SITUATION IN SUCH FLUX EVEN THE NATION'S POWERFUL BUREAUCRATS WHO JAPAN WATCHERS FLIPPANTLY SAY CAN RUN THE COUNTRY EVEN WHILE THE POLITICIANS SQUABBLE SEEM UNUSUALLY ADRIFT I DON'T KNOW WHAT TO DO A FINANCE MINISTRY OFFICIAL SAID GLUMLY AFTER THE VOTE IT WILL BE DIFFICULT TO TALK WITH THE POLITICIANS IT WILL BE HARROWING ALL AROUND ESPECIALLY FOR PRIME MINISTER HOSOKAWA WHILE STILL TREMENDOUSLY POPULAR MR. HOSOKAWA IS FIGHTING AN UPHILL BATTLE TO SALVAGE HIS JOB AND THE LEGISLATION WHICH IS DESIGNED TO CURB JAPAN'S ENDEMIC POLITICAL CORRUPTION AND OVERHAUL THE ELECTORAL SYSTEM BEFORE THE CURRENT SESSION OF PARLIAMENT ADJOURNS SATURDAY MR. HOSOKAWA COULD DECIDE TO DISSOLVE PARLIAMENT AND CALL FOR THE NATION'S SECOND ELECTIONS IN SEVEN MONTHS EVEN IF MR. HOSOKAWA ULTIMATELY PUSHES THROUGH REFORM AND HANGS ON TO POWER POLITICIANS AND ANALYSTS SAID THAT THIS WEEK PROBABLY WILL END WITH DEEPER STRAINS SUCH AS A SHUFFLING OF THE COALITION OR SPLITS IN THE TWO BIGGEST PARTIES THOSE STRAINS REFLECT JAPAN'S DIVIDED POLITICAL WORLD A PRECARIOUS COMBINATION OF OLD FORCES THAT ARE BROKEN BUT NOT CRUSHED AND NEW FORCES THAT HAVEN'T FULLY MATURED THIS IS A NECESSARY INSTABILITY SATSUKI EDA THE LEADER OF ONE OF THE SMALL COALITION PARTIES AND A MEMBER OF MR. HOSOKAWA'S CABINET SAID IN A WEEKEND INTERVIEW THE OLD PARTIES HAVE LOST GROUND THE NEW PARTIES WERE BORN QUITE ACCIDENTALLY AND HAVE TO CHANGE THEIR SHAPE QUOTE SUCH CONVULSIONS COULDN'T HAPPEN AT A WORSE TIME HIGH STAKES TRADE TALKS BETWEEN THE U. S. AND JAPAN ARE ENTERING THEIR FINAL PHASE MR. HOSOKAWA IS SCHEDULED TO MEET PRESIDENT CLINTON IN WASHINGTON FEBRUARY ELEVENTH TO SIGN A NEW TRADE AGREEMENT U. S. GOVERNMENT OFFICIALS FRUSTRATED WITH THE PACE SO FAR HAD COUNTED ON TOP LEVEL POLITICAL ATTENTION IN THE NEXT THREE WEEKS TO PUSH THE NEGOTIATIONS ALONG WASHINGTON HAD BEEN HOPING THAT A FAVORABLE VOTE WOULD LEAVE THE JAPANESE GOVERNMENT FREE TO CONCENTRATE ON THE TRADE TALKS ACCORDING TO U. S. TRADE REPRESENTATIVE MICKEY KANTOR HOWEVER WITH JAPAN'S CABINET NOW CONCENTRATING ON SURVIVAL THAT ISN'T LIKELY AN EARLY INDICATION OF THE CLINTON ADMINISTRATION'S CONCERN CAME ON SUNDAY IN TOKYO WHEN VISITING TREASURY SECRETARY LLOYD BENTSEN SAID MR. HOSOKAWA OBVIOUSLY HAS HIS WORK CUT OUT FOR HIM THE PRIME MINISTER FOR HIS PART TOLD MR. BENTSEN THAT JAPAN WANTS TO REDUCE TRADE TENSIONS WITH THE U. S. MR. BENTSEN MET WITH MR. HOSOKAWA AND FINANCE MINISTER HIROHISA FUJII ON HIS WAY BACK FROM CHINA TO HIGHLIGHT WASHINGTON'S DISAPPOINTMENT WITH THE LACK OF PROGRESS TOWARD SHRINKING JAPAN'S TRADE SURPLUS IN JULY THE U. S. AND JAPAN REACHED A SO CALLED FRAMEWORK AGREEMENT THAT INCLUDES SPECIFIC STEPS TO OPEN JAPANESE MARKETS TO U. S. PRODUCTS AND SERVICES JAPAN ALSO AGREED TO STIMULATE ITS ECONOMY WHICH WOULD BOOST DEMAND FOR IMPORTS SO FAR JAPAN HAS DONE LITTLE TO MEET ITS COMMITMENTS ALTHOUGH MR. BENTSEN RECEIVED NO SPECIFIC PROMISES HE SAID MR. HOSOKAWA TOLD HIM THAT I'M TELLING MY PEOPLE THAT WE WANT TO BRING THIS TO A SUCCESSFUL CONCLUSION ACCORDING TO JAPAN'S KYODO NEWS SERVICE MR. FUJII SAID JAPAN IS COMMITTED TO SPURRING ITS ECONOMY SO PLEASE TRUST US THE POLITICAL TURMOIL MEANS THAT FISCAL MEASURES TO LIFT THE JAPANESE ECONOMY WHICH PREVIOUSLY WERE EXPECTED AS EARLY AS THIS WEEK WILL BE DELAYED FURTHER WE HAD HOPED TO START DISCUSSING ECONOMIC MEASURES ONCE REFORM HAD PASSED SAID KOZO YAMAMOTO A PARLIAMENT COALITION MEMBER WORKING ON THE FISCAL PLAN QUOTE THAT WILL BE DELAYED QUOTE IF THEY LEAVE THE TURMOIL AS IT IS IT'S REALLY GOING TO AGGRAVATE THE ECONOMY FRETTED SHOICHIRO TOYODA CHAIRMAN OF TOYOTA MOTOR CORPORATION THE PITCHED POLITICAL BATTLE SEEMS ODD IN JAPAN A LARGELY CONSERVATIVE NATION WITH LITTLE ETHNIC ECONOMIC OR IDEOLOGICAL DIVERSITY MOREOVER THE POLITICAL CLASH IS LARGELY AN OBSCURE PROCEDURAL DEBATE ABOUT THE MERITS OF REPLACING JAPAN'S UNIQUE MULTISEAT DISTRICTS WITH A COMBINATION OF SINGLE SEAT DISTRICTS AND SEATS ALLOTTED BY PROPORTIONAL REPRESENTATION BUT SUCH TECHNICAL CHANGES STRIKE AT THE HEART OF HOW POLITICS WORKS HERE AND WHO ULTIMATELY HOLDS POWER SUCH A SHAKE UP IS A DICEY TASK SINCE THE INCUMBENT POLITICIANS MUST AGREE TO CHANGE THE VERY RULES THAT PUT THEM IN OFFICE HOW WOULD YOU LIKE TO TRY TO PASS A BILL THROUGH A LEGISLATURE IN WHICH ONE THIRD OF ITS MEMBERS WERE INSTANTLY DOOMED ASKS A SENIOR U. S. GOVERNMENT OFFICIAL HOW LONG THE UNCERTAINTY WILL LAST IS ANYBODY'S GUESS OPTIMISTS SAID MR. HOSOKAWA COULD SIMPLY RESHAPE HIS COALITION THIS WEEK BY KICKING OUT THE DISSIDENTS WHO VOTED AGAINST THE REFORM BILLS AND LURING SOME OPPOSITION PARLIAMENT MEMBERS AND THAT A STABLE ARRAY OF NEW PARTIES COULD EMERGE IN WEEKS OR MONTHS PESSIMISTS FEAR YEARS OF WEAK SHORT TERM PRIME MINISTERS ATOP RAPIDLY SHIFTING COALITIONS AS A SWEEPING REALIGNMENT TAKES SHAPE STILL THERE SEEMS NO GOING BACK SUPPORTERS OF POLITICAL REFORM INSIST THEY ARE STEADFAST IN PUSHING THEIR AGENDA WHATEVER THE COST OPPONENTS ARE DIVIDED THEY ARE STRONG ENOUGH TO BLOCK CHANGE BUT TOO WEAK TO TAKE POWER AND QUASH IT DESPITE THE COSTS THE BUSINESS COMMUNITY FOR NOW AT LEAST APPEARS STEADFASTLY BEHIND THE REFORMERS BIG BUSINESS HELPED FORGE THE OLD STABLE POLITICAL SYSTEM IN NINETEEN FIFTY FIVE URGING CONSERVATIVES TO UNITE AND CONTAIN THE VERY REAL SOCIALIST THREAT NOW MANY EXECUTIVES VIEW POLITICAL REFORM AS THE FIRST STEP IN A CHAIN OF BUREAUCRATIC AND ECONOMIC REFORMS NECESSARY TO REVITALIZE THE NATION'S STAGNANT ECONOMY IF WE DO NOT DO POLITICAL REFORM WE WILL NOT BE ABLE TO DO DEREGULATION AND SO FORTH SAID KAZUO NUKAZAWA MANAGING DIRECTOR OF KEIDANREN JAPAN'S BIG BUSINESS LOBBY IF WE DON'T DO THAT OUR ECONOMY WILL BE SUFFOCATED BY REGULATIONS AND POLITICAL CORRUPTION A DELAY IN ECONOMIC STIMULUS IS A GREAT LOSS FOR THE NATION MR. NUKAZAWA SAID QUOTE BUT WE ARE STICKING TO OUR POSITION QUOTE TOKYO'S POLITICAL ROLLER COASTER RIDE STARTED LAST SUMMER WITH THE SPLIT OF THE LIBERAL DEMOCRATIC PARTY AFTER THIRTY EIGHT YEARS IN POWER AND THE ASCENDANCE OF MR. HOSOKAWA'S SEVEN PARTY COALITION WHICH IS A CURIOUS ALLIANCE OF CONSERVATIVE L. D. P. DEFECTORS SOCIALISTS PROGRESSIVES AND A PARTY BACKED BY A BUDDHIST SECT THE NEW GOVERNMENT WAS UNIFIED MAINLY BY ITS OPPOSITION TO THE L. D. P. AND A COMMITMENT TO POLITICAL REFORM THE REFORM PACKAGE PASSED THE LOWER HOUSE OF PARLIAMENT IN NOVEMBER BUT THEN STALLED FOR TWO MONTHS IN THE UPPER HOUSE BEFORE FRIDAY'S DEFEAT SINCE THE COALITION'S FORMATION IN AUGUST ANALYSTS WARNED IT WAS FRAGILE BECAUSE IT DEPENDED HEAVILY ON THE UNPREDICTABLE SOCIALISTS A PARTY ONE WAG LABELED THE ROUNDWORM IN THE BELLY OF THE LION THE REFORM BILLS WERE DEFEATED BY A VOTE OF ONE HUNDRED EIGHTEEN TO ONE HUNDRED THIRTY FRIDAY BECAUSE SEVENTEEN OF SEVENTY THREE SOCIALISTS IN THE UPPER CHAMBER VOTED AGAINST THEM JOINING THE L. D. P. THAT VOTE WAS IN ESSENCE A BATTLE BETWEEN THE OLD AND NEW POLITICAL GUARDS WHILE THE REFORM MOVEMENT BEGAN IN RESPONSE TO POLITICAL CORRUPTION THE REFORMERS SAID THEIR GOAL IS BROADER TO CHANGE THE WAY POLITICS IS DONE IN JAPAN UNDER THE OLD SYSTEM THE SOCIALISTS THRIVED AS THE PERMANENT OPPOSITION TO THE L. D. P. SO FOR ALL THEIR DIFFERENCES THE OLD ENEMIES ARE NOW JOINING HANDS TO KEEP THAT STRUCTURE ALIVE ONE WEEKEND PRESS REPORT SAID THE DISSIDENT SOCIALISTS EVEN FED THE L. D. P. AN ADVANCE LIST OF THOSE PLANNING TO VOTE NO WITHOUT SHARING THE INFORMATION WITH SOCIALIST PARTY LEADERS MR. HOSOKAWA WILL SPEND THIS WEEK TRYING TO COBBLE TOGETHER ENOUGH SUPPORT TO PUSH THROUGH SOME REFORM PACKAGE BEFORE THIS SATURDAY'S FINAL PARLIAMENTARY SESSION BUT IT WILL BE TOUGH TO CRAFT A NEW PROPOSAL THAT CAN DRAW MAJORITY SUPPORT IN BOTH HOUSES WHILE THE L. D. P. AND MANY SOCIALISTS ARE UNITED IN OPPOSITION TO THE CURRENT REFORM PLAN THEY ARE DIAMETRICALLY OPPOSED ON THE REFORMS THEY WOULD SUPPORT ANY CONCESSION MR. HOSOKAWA MAKES TO WIN L. D. P. BACKING WILL COST HIM MORE SOCIALISTS BESIDES IT'S NOT CLEAR THAT THE L. D. P. LEADERSHIP WILL AGREE TO COMPROMISE MR. HOSOKAWA IS PUSHING FOR TALKS BUT AS OF SUNDAY THE L. D. P. WAS NONCOMMITTAL IT'S GETTING VERY COMPLICATED L. D. P. SECRETARY GENERAL YOSHIRO MORI SAID ON ONE OF MANY HEATED POLITICAL TALK SHOWS YESTERDAY HE SUGGESTED THE COALITION MIGHT CONSIDER DROPPING REFORM PLANS FOR NOW AND WORK ON NEXT YEAR'S BUDGET WHICH IS ALREADY A MONTH BEHIND SCHEDULE AS OF APRIL FIRST AFTER ALL JAPAN DOES RUN OUT OF MONEY MR. MORI NOTED DRYLY IF NO REFORM PACKAGE PASSES BY SATURDAY MR. HOSOKAWA COULD DISSOLVE PARLIAMENT AND CALL NEW ELECTIONS RESIGN AND LET THE SHAKEN COALITION CHOOSE A NEW PRIME MINISTER OR SOMEHOW TRY TO STAY IN OFFICE AND PUSH FOR REFORMS IN THE NEXT SESSION OF PARLIAMENT WHICH STARTS NEXT MONDAY EVEN SUCCESS THIS WEEK HOWEVER WON'T GUARANTEE POLITICAL CALM THE WHOLE POINT OF THE REFORMS IS TO UNLEASH A POLITICAL RESTRUCTURING THE OLD PARTY SYSTEM REFORMERS SAID REFLECTS DIVISIONS SUCH AS LIBERALISM VERSUS SOCIALISM THAT ARE NO LONGER RELEVANT THE CONTROVERSIAL BILLS BY CHANGING THE BASIC ELECTORAL RULES AND REDRAWING THE ELECTORAL MAP ARE SUPPOSED TO CREATE A NEW PARTY STRUCTURE THE JAPANESE POLITICAL PARTY SYSTEM HAS BEEN THE REFLECTION OF THE COLD WAR SAID MR. EDA QUOTE THE COLD WAR ENDED QUOTE INDEED WHATEVER HAPPENS THIS WEEK ANALYSTS FORESEE NEW RIFTS IN THE TWO PILLARS OF THE OLD STRUCTURE THE SOCIALISTS AND THE L. D. P. SOCIALIST LEADERS OVER THE WEEKEND WEIGHED PUNISHMENT INCLUDING POSSIBLE EXPULSION FOR THEIR DISSENTERS THE CURRENT FIGHT OVER POLITICAL REFORM MAY JUST BE THE FIRST EXAMPLE OF A DEEPER SERIES OF CONFLICTS AS JAPAN TRIES TO BUILD A NEW POLITICAL LANDSCAPE OVER THE NEXT FEW YEARS MANY ANALYSTS EXPECT A GENERAL REALIGNMENT AND A JAPANESE POLITICAL SCENE DOMINATED BY THREE MAJOR PARTIES A SMALLER L. D. P. THE MODERATE PROGRESSIVE WING OF THE COALITION AND THE CONSERVATIVE WING OF THE COALITION YET MAJOR SYSTEMIC TRANSFORMATIONS ARE RARELY EASY OR PREDICTABLE AS PARTIES FALL APART AND REBUILD A PROLONGED UGLY MUDFIGHT IS POSSIBLE UNTIL THERE IS A CONSOLIDATION OF THE EXISTING PARTIES AND GROUPS YOU'LL SEE A LOT OF IRRESPONSIBLE BEHAVIOR BY POLITICIANS WHO SEE THE OPPORTUNITY TO BRING DOWN A GOVERNMENT OR EMBARRASS A CABINET MINISTER PREDICTS COLUMBIA'S MR. CURTIS IN THAT ENVIRONMENT ROUTINE LEGISLATION SUCH AS A BUDGET COULD GET STALLED FOR MONTHS THE ELITE BUREAUCRACY CAN OF COURSE CONTINUE TO MICROMANAGE AFFAIRS BUT THE BUREAUCRATS ARE ALSO DIVIDED WITH EACH MINISTRY JEALOUSLY PROTECTING ITS OWN INTERESTS AND IN THE END THE BUREAUCRATS NEED POLITICAL SUPPORT LONGER TERM THE CLINTON ADMINISTRATION THINKS THE POLITICAL REFORMS WILL BE GOOD FOR THE U. S. WHICH HAS LONG BEEN FRUSTRATED BY JAPAN'S CLOSED WAYS SOCIETY IS CHANGING IT'S OPENING UP A SENIOR U. S. GOVERNMENT OFFICIAL SAID HOPEFULLY YESTERDAY BUT IN THE PAST THE U. S. FOUND STRONG L. D. P. POLITICIANS HELPFUL IN SOLVING TRADE DISPUTES BECAUSE THEY COULD BE PERSUADED TO FORCE DIFFICULT DECISIONS ON THE BUREAUCRACY IN RECENT YEARS A FAVORITE U. S. CHOICE WAS L. D. P. POWER BROKER ICHIRO OZAWA WHO CUT BILATERAL DEALS IN TELECOMMUNICATIONS AND CONSTRUCTION MR. OZAWA QUIT THE L. D. P. LAST YEAR AND IS NOW MR. HOSOKAWA'S CHIEF STRATEGIST FRIDAY'S DEFEAT RAISES SERIOUS QUESTIONS ABOUT MR. OZAWA'S ABILITY TO GET THINGS DONE IN THIS NEW UNCERTAIN WORLD IT'S NOT CLEAR ANYONE CAN KENNETH H. BACON CONTRIBUTED TO THIS ARTICLE REPUBLIC WASTE INDUSTRIES INCORPORATED SAID IT EXPECTS TO TAKE A TWENTY MILLION DOLLAR TO TWENTY FIVE MILLION DOLLAR PRETAX CHARGE AGAINST EARNINGS FOR ITS FOURTH QUARTER ENDED DECEMBER THIRTY FIRST THE ATLANTA WASTE SERVICE COMPANY SAID THE MOVE WILL RESULT IN A LOSS FOR BOTH THE QUARTER AND YEAR THE COMPANY DISCLOSED ITS PLANS AFTER MARKETS CLOSED FRIDAY IN NASDAQ STOCK MARKET TRADING REPUBLIC CLOSED AT THREE POINT THREE ONE TWO FIVE DOLLARS A SHARE UP TWELVE POINT FIVE CENTS A SPOKESMAN SAID THE CHARGE STEMS LARGELY FROM REPUBLIC'S PLAN TO REDUCE THE SIZE OF ITS HAZARDOUS WASTE DIVISION A MOVE THAT THE CONCERN SAYS SHOULD PRODUCE QUOTE SUBSTANTIAL QUOTE SAVINGS IN OPERATING COSTS IN NINETEEN NINETY FOUR AND BEYOND FOR THE NINETEEN NINETY TWO FOURTH QUARTER REPUBLIC EARNED ONE POINT NINE MILLION DOLLARS OR SEVEN CENTS A SHARE ON REVENUE OF TWENTY NINE POINT NINE MILLION DOLLARS FOR ALL OF NINETEEN NINETY TWO REPUBLIC HAD A LOSS OF FOURTEEN MILLION DOLLARS OR FIFTY THREE CENTS A SHARE ON REVENUE OF ONE HUNDRED TEN MILLION DOLLARS THE NINETEEN NINETY TWO RESULTS INCLUDE A LOSS OF TWENTY POINT TWO MILLION DOLLARS FROM DISCONTINUED OPERATIONS EQUIFAX INCORPORATED ATLANTA EXPECTS TO REPORT EARNINGS PER SHARE IN THE FOURTH QUARTER JUMPED MORE THAN EIGHTEEN PERCENT FROM A YEAR EARLIER C. B. QUOTE JACK QUOTE ROGERS CHAIRMAN AND CHIEF EXECUTIVE SAID THE COMPANY A PROVIDER OF INFORMATION FOR CONSUMER FINANCIAL TRANSACTIONS EXPECTS TO REPORT THAT NET INCOME IN THE QUARTER ROSE ABOUT TEN PERCENT ON REVENUE GROWTH OF MORE THAN NINE PERCENT IN THE NINETEEN NINETY TWO FOURTH QUARTER EQUIFAX EARNED TWENTY SIX MILLION DOLLARS OR THIRTY TWO CENTS A SHARE ON REVENUE OF THREE HUNDRED THREE POINT FOUR MILLION DOLLARS FOR ALL OF NINETEEN NINETY THREE WHICH MR. ROGERS CHARACTERIZED AS A RECORD BREAKING YEAR EQUIFAX EXPECTS TO REPORT PER SHARE PROFIT BEFORE UNUSUAL ITEMS JUMPED MORE THAN TWENTY PERCENT FROM A YEAR EARLIER ON REVENUE GROWTH OF MORE THAN SEVEN PERCENT FOR NINETEEN NINETY TWO EQUIFAX REPORTED EARNINGS OF EIGHTY FIVE POINT THREE MILLION DOLLARS OR ONE DOLLAR AND FOUR CENTS A SHARE ON REVENUE OF ONE POINT ONE THREE BILLION DOLLARS MR. ROGERS SAID A REORGANIZATION OF BUSINESS UNITS INTO FOUR INDUSTRY GROUPS EARLY IN NINETEEN NINETY THREE PAVED THE WAY FOR THE STRONG RESULTS WHEN U. S. IMMIGRATION LEGISLATION WAS BEING FRAMED IN THE NINETEEN TWENTIES CONGRESSIONAL COMMITTEES HEARD LEADING SCIENTISTS OF THE DAY TESTIFY THAT GREED SLOTH DRUNKENNESS AND POVERTY WERE GENETICALLY ROOTED THE BEST WAY TO KEEP OUR POPULATION FREE OF SUCH UNDESIRABLE TRAITS IT WAS ARGUED WAS TO LIMIT THE ENTRY OF THE ETHNIC RACIAL AND RELIGIOUS GROUPS WHO TENDED TO CARRY THE CULPRIT GENES THE RESULT WAS THE IMMIGRATION LAW OF NINETEEN TWENTY SIX WHICH LATER MADE IT IMPOSSIBLE FOR MANY OF THE VICTIMS OF THE THIRD REICH'S MORE ACTIVIST EUGENICS INITIATIVES TO ESCAPE TO THE U. S. TODAY WE ARE BETTER INFORMED ABOUT HOW GENETICS WORKS INDEED TEAMS OF MOLECULAR BIOLOGISTS WORKING UNDER THE HUMAN GENOME PROJECT ARE NOW CONVERGING ON A COMPREHENSIVE MAP OF THE ESTIMATED ONE HUNDRED THOUSAND GENES THAT CONSTITUTE THE BLUEPRINT FOR HUMANKIND YET WITH THIS HOLY GRAIL OF BIOLOGY SEEMINGLY WITHIN REACH WE ARE HEARING SPECULATIONS THAT ARE REMINISCENT OF THE BENIGHTED TWENTIES MIGHT THERE NOT IT IS SUGGESTED BE A GENE FOR CRIMINAL BEHAVIOR FOR SEXUAL PREFERENCE FOR HAPPINESS WILL OUR POWER TO MANIPULATE D. N. A. BRING ABOUT THE PERFECTION OF THE HUMAN OR EVEN THE TOMATO THIS IS JUST THE SORT OF NAIVETE THAT ROBERT POLLACK DECISIVELY QUASHES IN QUOTE SIGNS OF LIFE THE LANGUAGE AND MEANINGS OF D. N. A. QUOTE HOUGHTON MIFFLIN TWO HUNDRED TWELVE PAGES NINETEEN DOLLARS AND NINETY FIVE CENTS MR. POLLACK A DISTINGUISHED MOLECULAR BIOLOGIST AND TEACHER AT COLUMBIA UNIVERSITY SEES D. N. A. NOT AS MERE MOLECULES AMENABLE TO THE METHODS OF PHYSICS BUT AS AN ANCIENT TEXT WRITTEN OVER THE PAST THREE BILLION YEARS BY THE HAND OF EVOLUTION THE HUMAN GENOME PROJECT HE POINTS OUT IS ONLY THE FIRST STEP IN DIVINING THE MEANING OF THIS TEXT WHAT THE VAST FIFTEEN YEAR EFFORT WILL YIELD IS A STRING OF THREE BILLION MOLECULAR LETTERS SPELLING OUT THE SENTENCES THAT ARE OUR GENES UNDERSTANDING THESE SENTENCES HOWEVER MEANS LEARNING TO FATHOM THE MYRIAD ACTIVITIES OF THE TINY MOLECULAR MACHINES PROTEINS THAT IS WHOSE DESIGN THEY ENCODE NOR IS THE OVERALL MEANING OF THE HUMAN GENOME OF WHICH EACH INDIVIDUAL POSSESSES A SLIGHTLY DIFFERENT DRAFT SIMPLY A SUM OF THE MEANINGS OF THE GENES THAT CONSTITUTE IT SUCH IS THE RICHNESS DEPTH AND AMBIGUITY OF THE GENETIC TEXT WE CARRY IN OUR CELLS MR. POLLACK PERSUASIVELY ARGUES THAT THE TEXT'S SIGNIFICANCE WILL NEVER BE FULLY DISCLOSED SO MUCH FOR THE FANTASY OF REDUCING COMPLEX HUMAN BEHAVIORS TO THE ACTION OF A FEW GENES SIGNS OF LIFE IS NOT ALWAYS A BREEZE TO READ BUT MR. POLLACK IS LUCID AND LOGICAL IN ANALYZING THE SOCIAL POSSIBILITIES RAISED BY OUR NEW FOUND POWER TO MANIPULATE THE CHEMISTRY OF HEREDITY WHICH INCLUDES EUGENIC SELECTION BY TEST TUBE FERTILIZATION AND THE CONTROL OF HUMAN SEXUALITY THROUGH MOLECULAR PHARMACOLOGY ALL THESE PROCEDURES HE WRITES WILL UNDOUBTEDLY BE PROPOSED WITH GREAT ENTHUSIASM IN THE COMING YEARS BUT ONCE THEY ARE SEEN IN THE LIGHT OF THE HUMAN GENOME'S GLOBAL IMPENETRABILITY THESE DEAD ENDS OF AN OLD PARADIGM WILL APPEAR AS WRONG AND AS DANGEROUS AS THE ESTABLISHMENT OF SEPARATE CULTURE VESSELS FOR ALPHAS AND BETAS IN THE BRAVE NEW WORLD OF HUXLEY OR THE NUMBERING OF PEOPLE BY TATTOO ON THEIR ARMS IN THE REAL WORLD OF GERMAN CONCENTRATION CAMPS IF ALL GOES ACCORDING TO PLAN A MAP OF THE HUMAN GENOME WILL BE ASSEMBLED BY TWO THOUSAND THREE JUST IN TIME FOR THE FIFTIETH ANNIVERSARY OF THE DISCOVERY OF D. N. A.'S ELEGANT SPIRAL STAIRCASE ARCHITECTURE ONE OF THE DUO OF SCIENTISTS AWARDED THE NOBEL PRIZE FOR THIS EARLIER FEAT JAMES WATSON ALSO HEADED THE HUMAN GENOME PROJECT UNTIL NINETEEN NINETY TWO WHEN HE STEPPED DOWN TO PROTEST THE GOVERNMENT'S DECISION TO PATENT SOME OF THE NEWLY DISCOVERED GENE SEQUENCES THE OTHER LAUREATE FRANCIS CRICK HAS MOVED ON TO AN EVEN MORE AMBITIOUS QUEST WHICH HE TELLS OF IN THE ASTONISHING HYPOTHESIS THE SCIENTIFIC SEARCH FOR THE SOUL SCRIBNERS THREE HUNDRED SEVENTEEN PAGES TWENTY FIVE DOLLARS MR. CRICK'S AVOWED GOAL IS TO SOLVE THE MYSTERY OF CONSCIOUSNESS IN SCIENTIFIC TERMS HE BASES HIS APPROACH ON THE ASTONISHING BUT TO HIS MIND QUITE PLAUSIBLE HYPOTHESIS THAT YOU YOUR JOYS AND YOUR SORROWS YOUR MEMORIES AND YOUR AMBITIONS YOUR SENSE OF PERSONAL IDENTITY AND FREE WILL ARE IN FACT NO MORE THAN THE BEHAVIOR OF A VAST ASSEMBLY OF NERVE CELLS AND THEIR ASSOCIATED MOLECULES COULD TWO THINGS SO APPARENTLY DISSIMILAR AS A THOUGHT AND NEURAL FIRING REALLY BE IDENTICAL BRUSHING ASIDE THIS PHILOSOPHICAL QUESTION WITH THE INSOUCIANCE OF A GREAT SCIENTIST MR. CRICK INSTEAD TAKES THE READER ON AN ABSORBING TOUR OF THE EXPERIMENTAL EFFORTS AIMED AT DISCOVERING HOW BRAIN PROCESSES GIVE RISE TO OUR VISUAL CONSCIOUSNESS IN A SOMEWHAT PLAYFUL SPIRIT HE PURPORTS TO LOCATE THE SEAT OF OUR FREE WILL IN A LITTLE STRUCTURE CALLED THE QUOTE ANTERIOR CINGULATE SULCUS QUOTE NEAR THE END OF THE ASTONISHING HYPOTHESIS THE ALWAYS GENIAL AUTHOR CONCEDES THAT THERE MAY BE ASPECTS OF CONSCIOUSNESS THAT LIE BEYOND THE REACH OF SCIENCE YET SO STALWART IS HIS FAITH IN THE SCIENTIFIC METHOD THAT HE URGES IT EVEN ON THOSE WHO BELIEVE THAT THE SOUL IS SOMETHING MORE THAN THE PURELY MATERIAL FIRING OF NEURONS IF THE MEMBERS OF A CHURCH REALLY BELIEVE IN LIFE AFTER DEATH HE ASKS WHY DO THEY NOT CONDUCT SOUND EXPERIMENTS TO ESTABLISH IT SEANCES PERHAPS U. K. DRUG COMPANY ZENECA P. L. C. SAID BUSINESS IN THE SECOND HALF OF NINETEEN NINETY THREE WAS BETTER THAN A YEAR EARLIER IT ALSO SAID IT EXPECTS TO REPORT PROFIT FOR THE SECOND HALF QUOTE AHEAD OF THE COMPARABLE PERIOD IN NINETEEN NINETY TWO ALTHOUGH SLIGHTLY LOWER THAN THE FIRST HALF OF NINETEEN NINETY THREE QUOTE ZENECA WHICH WAS SPUN OFF BY IMPERIAL CHEMICAL INDUSTRIES P. L. C. AT THE START OF NINETEEN NINETY THREE SAID OVERALL DRUG SALES WERE HIGHER IN NINETEEN NINETY THREE THAN IN NINETEEN NINETY TWO UNCERTAINTIES IN MANY HEALTH CARE MARKETS REMAIN AND THE FAVORABLE IMPACT OF EXCHANGE RATES HAS DECREASED SUBSTANTIALLY COMPARED WITH THE FIRST HALF OF NINETEEN NINETY THREE THE COMPANY CAUTIONED ZENECA SAID IT EXPECTS ITS AGROCHEMICALS BUSINESS TO BREAK EVEN IN THE SECOND HALF THE DIVISION HAD A LOSS IN THE SECOND HALF OF NINETEEN NINETY TWO ONE FACTOR CONTRIBUTING TO PRESSURE ON PROFIT MARGINS WAS THE IMPACT OF EUROPEAN UNION FARMING POLICY THE COMPANY SAID CASTLE ENERGY CORPORATION RADNOR PENNSYLVANIA SAID A SHAREHOLDER FILED A SUIT ALLEGING THAT THE COMPANY VIOLATED FEDERAL SECURITY LAWS IN CONNECTION WITH ITS RECENT PUBLIC OFFERING THE SUIT FILED BY LESLIE SUSSER IN THE FEDERAL COURT IN CALIFORNIA CLAIMED CASTLE ENERGY FAILED TO DISCLOSE CERTAIN INFORMATION REGARDING THE FINANCIAL CONDITION OF ITS PRINCIPAL CUSTOMER METALLGESELLSCHAFT A. G. THE SUIT ALSO CALLS FOR A TEMPORARY RESTRAINING ORDER THAT WOULD FREEZE PROCEEDS FROM THE OIL AND GAS CONCERN'S OFFERING CASTLE ENERGY SAID IT BELIEVES QUOTE ALL MATERIAL ALLEGATIONS AGAINST IT ARE GROUNDLESS QUOTE METALLGESELLSCHAFT A TROUBLED METALS AND TRADING COMPANY THAT OWNS FORTY PERCENT OF CASTLE ENERGY RECENTLY ANNOUNCED RESTRUCTURING TO SOLVE CERTAIN FINANCIAL PROBLEMS AND SATISFY CREDITORS CASTLE ENERGY SAID CERTAIN CURRENT AND FORMER OFFICERS AND DIRECTORS AS WELL AS METALLGESELLSCHAFT WERE NAMED IN THE CALIFORNIA SUIT CASTLE ENERGY ALSO SAID IT BELIEVED A SIMILAR SUIT WAS ALSO FILED IN FEDERAL COURT IN PENNSYLVANIA B. E. I. ELECTRONICS INCORPORATED SAID SLOW SALES PROBABLY LED TO A LOSS OF ONE MILLION DOLLARS FOR ITS FISCAL FIRST QUARTER ENDED DECEMBER THIRTY FIRST TO BE FOLLOWED BY A QUOTE PROBABLE QUOTE LOSS IN THE CURRENT QUARTER BECAUSE OF LAST WEEK'S SOUTHERN CALIFORNIA EARTHQUAKE THE EXPECTED FIRST QUARTER LOSS EQUAL TO ABOUT FIFTEEN CENTS A SHARE COMPARES WITH NET INCOME OF SEVEN HUNDRED ELEVEN THOUSAND DOLLARS OR ELEVEN CENTS A SHARE A YEAR AGO THE COMPANY INDICATED IN SAN FRANCISCO THAT SALES WERE LOWER THAN ANTICIPATED OWING TO POOR DEMAND FOR ITS ROCKET SYSTEMS AND OTHER MILITARY PRODUCTS SALES IN THE YEAR AGO PERIOD WERE THIRTY TWO POINT THREE MILLION DOLLARS THE SECOND QUARTER RESULTS WILL BE HURT BY EARTHQUAKE DAMAGE AT THREE COMPANY MANUFACTURING PLANTS IN SOUTHERN CALIFORNIA B. E. I. SAID TOM HAYDEN THE LONGTIME LIBERAL ACTIVIST AND NOW A GRAY HAIRED STATE SENATOR HAS FOUND A NEW VEHICLE FOR PROTEST AN ELECTRIC CAR HIS CAUSE IS CLEANER AIR UNDER THE CREAKY HOOD OF HIS DINGY WHITE FORD ESCORT STATION WAGON ARE NOTHING BUT BATTERIES EIGHTEEN OF THEM WEIGHING SEVERAL HUNDRED POUNDS THE CONVERTED VEHICLE IS QUIET SMOG FREE AND QUOTE PERFECTLY ADEQUATE FOR TOOLING AROUND THE CITY QUOTE SAYS MR. HAYDEN SO AUTO COMPANIES OUGHT TO GEAR UP TO BUILD ELECTRIC CARS FOR EVERYBODY HE SAYS BUT NEARLY A CONTINENT AND CULTURAL LIGHT YEARS AWAY DETROIT HAS A ONE WORD ANSWER NONSENSE SURE THE AUTO COMPANIES COULD MAKE ELECTRIC CARS CONCEDES SAM LEONARD DIRECTOR OF AUTO EMISSION CONTROL AT GENERAL MOTORS CORPORATION BUT HE MAINTAINS NOBODY WOULD WANT TO BUY THEM HE COULD LEAD A CHORUS OF THAT REFRAIN FROM ONE END OF THE AUTO INDUSTRY TO THE OTHER AND THEREIN LIE THE ELEMENTS FOR WHAT MAY TURN INTO ONE OF THE NASTIEST CULTURAL CLASHES OF THE NINETEEN NINETIES BETWEEN THE MOTOR HEADS OF DETROIT AND THE ELECTRIC CAR CROWD IN CALIFORNIA FOR WHAT IS NONSENSE IN THE MOTOR CITY LOOKS LIKE THE FUTURE TO AN UNLIKELY COALITION FORMING ON THE WEST COAST IT CONSISTS OF ENVIRONMENTALISTS VENTURE CAPITALISTS ELECTROCHEMISTS MECHANICAL ENGINEERS THE ELECTRIC UTILITY INDUSTRY AND POLITICIANS DESPERATE FOR A NEW JOBS GENERATING INDUSTRY THEY ALL BELIEVE THE FUTURE SHOULD START NOW IT'S GOING TO BE A BIG BATTLE SAYS DIANNE WITTENBERG MANAGER OF ELECTRIC TRANSPORTATION AT SOUTHERN CALIFORNIA EDISON COMPANY IN ROSEMEAD WHICH HAS AN OBVIOUS INTEREST IN SELLING THE POWER THAT WOULD RECHARGE ELECTRIC CARS EMBOLDENING THE AUTO INDUSTRY'S CRITICS IS A BELIEF BY MANY THAT DETROIT HAS BLOWN ITS CREDIBILITY CONCERNING ITS RESPONSES TO DEMANDS FOR CHANGE CRITICS RECALL HOW AUTO MAKERS USED TO CLAIM THAT CONSUMERS WOULD NEVER PAY FOR CATALYTIC CONVERTERS OR AIR BAGS OR WRINKLE PROOF BUMPERS FORTUNATELY THERE ARE ENOUGH PEOPLE WHO ARE OLD ENOUGH TO KNOW THE AUTO INDUSTRY'S HISTORY OF DECEIT MR. HAYDEN SAYS SO IT IS THAT CALIFORNIA'S REQUIREMENT THAT CAR MAKERS SELL A CERTAIN PERCENTAGE OF ZERO EMISSION VEHICLES MOST LIKELY ELECTRICS BY NINETEEN NINETY EIGHT IS THREATENING TO SPREAD CLEAN AIR REGULATORS IN A DOZEN STATES FROM MAINE TO VIRGINIA PLUS WASHINGTON D. C. ARE TO BEGIN DECIDING NEXT MONTH WHETHER TO IMPOSE CALIFORNIA STYLE RULES IF ALL DO THEN HALF THE U. S. CAR MARKET WOULD BE COVERED BY A MANDATE EFFECTIVELY REQUIRING THAT ONE IN EVERY TEN NEW CARS SOLD AFTER THE YEAR TWO THOUSAND TWO BE ELECTRIC UNDERSTANDABLY THIS HAS GOTTEN DETROIT'S ATTENTION THE BIG THREE HAVE BILLIONS INVESTED IN INTERNAL COMBUSTION ENGINES THEY ARE SPENDING BILLIONS MORE TO MAKE CONVENTIONAL CARS COMPLY WITH THE TOUGHER EMISSIONS STANDARDS OF THE NINETEEN NINETY AMENDMENTS TO THE CLEAN AIR ACT AND WITH SIMILAR RULES SET BY CALIFORNIA FOR INSTANCE CALIFORNIA ALSO WANTS CONVENTIONAL CARS TO CARRY COMPUTERIZED DEVICES THAT TELL DRIVERS WHEN THEIR VEHICLES ARE SPEWING OUT TOO MUCH NOXIOUS STUFF WE'RE GOING TO GO TO MARKET WITH A SYSTEM THAT'S GOING TO LIGHT UP THE DASHBOARD LIKE A CHRISTMAS TREE CRACKS JOHN F. SMITH JUNIOR G. M.'S PRESIDENT AND CHIEF EXECUTIVE OFFICER IT'S GOING TO MAKE A LOT OF PEOPLE MAD TO TRY TO PREVENT THE ELECTRIC CAR MOVEMENT FROM ESTABLISHING ITSELF IN THE NORTHEAST THE BIG THREE HAVE BEEN PROMOTING THEIR OWN CLEAN AIR PLAN ONE THEY MAINTAIN WOULD BE MORE PALATABLE TO CONSUMERS AND EASIER FOR THE CAR COMPANIES TO MEET AND IN CALIFORNIA A BILL HAS BEEN INTRODUCED THAT ATTACKS THE STATE'S ZERO EMISSION MANDATE WE'RE NOT READY DECLARES FORD MOTOR COMPANY CHAIRMAN ALEX TROTMAN QUOTE WE ARE SIMPLY UNABLE TO PROVIDE A VEHICLE THAT PROVIDES THE RANGE THAT IS ACCEPTABLE TO CUSTOMERS OUT IN CALIFORNIA OR ANYWHERE ELSE IN THE UNITED STATES AT A PRICE THAT IS AFFORDABLE QUOTE MR. HAYDEN'S CONVERTED ESCORT INDUSTRY EXPERTS SAY WOULD SELL FOR AT LEAST THIRTY THOUSAND DOLLARS AND WOULD BE LUCKY TO GO ONE HUNDRED MILES BETWEEN EIGHT HOUR CHARGES BUT TO ELECTRIC CAR PROPONENTS IN CALIFORNIA DETROIT'S MARKETING CONCERNS AREN'T THE ISSUE RATHER IT IS WHETHER ELECTRIC CARS ARE TECHNOLOGICALLY FEASIBLE THE CALIFORNIA AIR RESOURCES BOARD WILL HOLD A PUBLIC REVIEW OF AUTO TECHNOLOGY LATER THIS YEAR TO HELP DETERMINE THAT BACK IN THE NINETEEN SEVENTIES WHEN CARB FOUND IN FAVOR OF EXHAUST SCRUBBING CATALYTIC CONVERTERS FOR CARS DESPITE INDUSTRY PROTESTS THE TECHNOLOGY IN FACT FOLLOWED SO LIKE CONSPIRACY THEORISTS REVIEWING GRAINY OLD NEWSREELS SOME ELECTRIC CAR ADVOCATES DETECT A DETROIT PLOT TO KILL A PROMISING NEW TECHNOLOGY TAKE THE U. S. ADVANCED BATTERY CONSORTIUM A BIG THREE LED TWO HUNDRED SIXTY MILLION DOLLARS GROUP FORMED THREE YEARS AGO TO SEARCH FOR THE MISSING LINK A COMPACT LIGHTWEIGHT LONG LASTING QUICK CHARGING BATTERY THAT IS CAPABLE OF MAKING ELECTRIC CARS MATCH GASOLINE POWERED AUTOS AS COMMERCIAL DEVELOPMENT MANAGER FOR THE ELECTRIC POWER RESEARCH INSTITUTE JACK GUY IS ALSO HUNTING FOR THAT ELUSIVE BATTERY HIS COALITION OF UTILITIES HAS PUT MORE THAN TWENTY FIVE MILLION DOLLARS INTO BATTERY RESEARCH INCLUDING CONTRIBUTIONS TO THE BATTERY CONSORTIUM BUT MR. GUY WONDERS WHETHER THE CONSORTIUM MIGHT HAVE DELIBERATELY SET ITSELF AN IMPOSSIBLE GOAL A BREAKTHROUGH BATTERY IN HOPES OF SABOTAGING CALIFORNIA'S ELECTRIC VEHICLE MANDATE IF YOU DON'T WANT ELECTRIC CARS TO HAPPEN QUICKLY SAYS MR. GUY YOU DON'T COME UP WITH A BATTERY JUST MAYBE HE ARGUES A BREAKTHROUGH BATTERY ISN'T NECESSARY RIGHT NOW MAYBE AN IMPROVEMENT IN THE LEAD ACID BATTERIES IN MR. HAYDEN'S ESCORT WOULD BE GOOD ENOUGH MR. GUY'S GROUP IS INVESTING SIX POINT SIX MILLION DOLLARS IN AN AUSTIN TEXAS COMPANY THAT IS TO START MANUFACTURING SUCH BATTERIES FOR CARS THIS YEAR THE COMPANY ELECTROSOURCE INCORPORATED MAINTAINS ITS BATTERY PACK WILL SELL FOR LESS THAN TEN THOUSAND DOLLARS THAT IS MUCH LESS THAN THE FORTY FIVE THOUSAND DOLLARS THAT FORD SAYS IS THE COST OF THE SODIUM SULFUR BATTERY PACK USED IN ITS PROTOTYPE ELECTRIC CARS THE PEOPLE BEHIND THE BATTERY CONSORTIUM SAY THEY KNOW THE LIMITATIONS OF LEAD ACID BATTERIES AND THEREFORE ARE CONCENTRATING ON FINDING BETTER TYPES THIS SORT OF STANCE BY THE AUTO INDUSTRY IS WHAT IRRITATES UTILITY INDUSTRY EXECUTIVES BATTERY DEVELOPERS AND WALL STREET INVESTORS MANY WEST COAST POLITICAL AND BUSINESS LEADERS ASK WHY THE BIG THREE CAN'T SEE THE IMMEDIATE POTENTIAL TO CREATE A SILICON VALLEY FOR THE AMERICAN ELECTRIC CAR INDUSTRY PREFERABLY NOT TOO FAR FROM THE REAL SILICON VALLEY AREN'T THEY WORRIED ABOUT LOSING ANOTHER LUCRATIVE MARKET TO THE JAPANESE OR THE EUROPEANS THOUGH THEY HAVEN'T LEAPT INTO THE TECHNOLOGY IN A BIG WAY EITHER ELECTRIC CAR BELIEVERS SEE A NICHE MARKET OF ENVIRONMENTALLY FRIENDLY FOLKS WHO WANT A SECOND OR THIRD CAR TO DRIVE FOR COMMUTES OF FORTY MILES OR LESS TAKE ACTOR LESLIE NIELSEN STAR OF AIRPLANE AND THE NAKED GUN WHEN HE ISN'T DRIVING ONE OF HIS THREE GAS GUZZLING BENTLEYS HE IS USUALLY TOOLING AROUND THE HILLS OF WEST HOLLYWOOD IN AN ELECTRIC POWERED TOYOTA PASEO IT'S JUST A LOVELY LITTLE BLACK BUG THAT ZIPS AROUND THE TRAFFIC SAYS MR. NIELSEN WHO MODELED FOR AN ELECTRIC CAR AD IN THE NEIMAN MARCUS CHRISTMAS CATALOG IT'S A GREAT SECOND CAR OR MAYBE EVEN A FIRST CAR ACCORDING TO SOUTHERN CALIFORNIA EDISON IN A SURVEY THE UTILITY COMMISSIONED LAST YEAR OF ONE THOUSAND CALIFORNIANS SEVENTY PERCENT OF WHOM WERE AWARE OF ELECTRIC CARS' LIMITED RANGE MORE THAN SIXTY PERCENT EXPRESSED AN INTEREST IN BUYING AN ELECTRIC CAR IF IT WERE AS AFFORDABLE AS REGULAR CARS THAT SUGGESTS IT WOULDN'T BE HARD TO FIND ENOUGH BUYERS TO MEET THE STATE REQUIREMENT THAT TWO PERCENT OF THE CARS A COMPANY SELLS IN CALIFORNIA BE ZERO EMISSION BY NINETEEN NINETY EIGHT TWO PERCENT OF CALIFORNIA'S TWO MILLION VEHICLE A YEAR MARKET IS FORTY THOUSAND TO PUT THAT INTO PERSPECTIVE SOME EUROPEAN AUTO MAKERS STRUGGLE TO SELL TWENTY THOUSAND CARS A YEAR IN THE WHOLE U. S. MARKET THERE ARE ABOUT THREE THOUSAND ELECTRIC CARS ON THE ROAD CURRENTLY CLEARLY THE LEADERS OF THIS MOVEMENT FERVENTLY BELIEVE IN THE ELECTRIC DREAM AT AN ELECTRIC VEHICLE CONFERENCE LAST FALL IN PHOENIX BILL STEPHENSON AN EXECUTIVE FOR ARIZONA PUBLIC SERVICE COMPANY LED AN EMOTIONAL DEFENSE OF THE CAUSE SO CALL US UNREASONABLE MR. STEPHENSON SAID IN CHALLENGING THE BIG THREE'S CRITICISM OF CALIFORNIA'S ZERO EMISSION MANDATE QUOTE BUT WHAT WE BELIEVE ARE UNREASONABLE AND UNACCEPTABLE ARE DELAY TACTICS QUOTE REGARDLESS OF WHETHER THE CALIFORNIA MANDATE STICKS AND SPREADS A FEW WHO ARE AT THE FOREFRONT OF ELECTRIC VEHICLE DEVELOPMENT AIM TO PLOW AHEAD U. S. ELECTRICAR A SMALL COMPANY LOCATED IN THE LUSH VALLEYS OF QUAINT SEBASTOPOL CALIFORNIA CONVERTS GEO PRIZMS AND CHEVY S. TEN PICKUP TRUCKS TO ELECTRIC POWER TO SELL TO FEDERAL RESEARCHERS ELECTRIC UTILITIES AND THE FEW INDIVIDUAL BUYERS LIKE MR. NIELSEN THOUGH ELECTRICAR HAS SOLD JUST TWO HUNDRED VEHICLES SINCE NINETEEN EIGHTY THREE IT EXPECTS TO SELL ONE THOUSAND ONE HUNDRED FIFTY THIS YEAR IF IT DOES IT WILL HAVE DONE SO WITH INDIRECT HELP FROM G. M. WHEN G. M. SPIKED PLANS TO BUILD THE ELECTRIC IMPACT FOR NEXT YEAR FLEET MANAGERS FOUND THEMSELVES IN A JAM TO MEET FEDERAL REQUIREMENTS TO BEGIN ADDING ALTERNATIVE FUEL VEHICLES CREATING AN OPPORTUNITY FOR ELECTRICAR MOREOVER THE POWER CONTROL SYSTEMS DIVISION OF G. M.'S HUGHES AIRCRAFT CORPORATION UNIT IN TORRANCE CALIFORNIA MAKES THE DRIVE SYSTEM FOR ELECTRICAR'S VEHICLES ELECTRICAR CONVERTS VEHICLES BY REMOVING THEIR INTERNAL COMBUSTION ENGINES AND REPLACING THEM WITH SHINY BRIEFCASE SIZED BOXES FROM HUGHES CRAMMED WITH ELECTRONICS THESE BOXES BECOME THE ENGINES THAT DRIVE ELECTRICAR'S FORTY THOUSAND DOLLARS VEHICLES WITH THE BATTERIES PLACED UNDER THE CAR IF THE VEHICLES WERE MASS PRODUCED DETROIT STYLE THEIR COST COULD BE CUT IN HALF ELECTRICAR SAYS THAT ELECTRIC CAR ADVOCATES ARGUE IS THE FLAW IN THE INDUSTRY'S ARGUMENT THAT ELECTRIC CARS WOULDN'T BE AFFORDABLE CRUDER CONVERSIONS ALREADY SELL FOR MUCH LESS THAN FORTY THOUSAND DOLLARS AND AS FOR WHETHER PEOPLE WILL LIKE DRIVING THEM WELL JUST TAKE A RIDE WITH DANIEL D. RIVERS THE MANAGER OF HUGHES'S ELECTRIC VEHICLE PROGRAM WITH A HEAD SNAPPING SCREECH OUT OF HIS PARKING LOT DOCTOR RIVERS PUNCHES THE PEDAL ON AN ELECTRICAR GEO PRIZM LAUGHING AS HE BARRELS AROUND A CORNER HE BRAGS ABOUT THE DRIVE SYSTEM'S TORQUE CURVE CLAIMING THE CAR CAN ZOOM TO NINETY MILES AN HOUR IN FIRST GEAR WE'RE TRYING TO SEE WHO CAN GET THE FIRST LEGITIMATE TRAFFIC TICKET IN ONE SAYS DOCTOR RIVERS I THINK THE CONSUMER WILL LIKE IT M. I. M. HOLDINGS LIMITED SAID ITS CANADIAN SUBSIDIARY PLANS TO SELL ITS TWELVE POINT SEVEN MILLION SHARES OF GRANGES INCORPORATED REPRESENTING THIRTY SEVEN PERCENT OF TOTAL SHARES OUTSTANDING FOR AT LEAST FOUR CANADIAN DOLLARS THREE U. S. DOLLARS AND FIVE CENTS A SHARE OR A TOTAL OF FIFTY POINT EIGHT MILLION CANADIAN DOLLARS THIRTY EIGHT POINT EIGHT MILLION U. S. DOLLARS UNDER AN AGREEMENT BETWEEN THE COMPANIES AUSTRALIA BASED M. I. M. SAID GRANGES HAS THE RIGHT FOR THIRTY DAYS TO FIND A PURCHASER FOR THE SHARES AT A COMPARABLE PRICE AFTER THAT M. I. M. WILL BE FREE TO SELL THE SHARES FOR ABOUT THREE MONTHS GRANGES IS A TORONTO MINING CONCERN A GRANGES SPOKESWOMAN SAID AN INDEPENDENT BOARD COMMITTEE WILL STUDY THE MATTER AND SUGGEST A COURSE OF ACTION IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING FRIDAY GRANGES CLOSED AT THREE U. S. DOLLARS A SHARE DOWN TWELVE POINT FIVE CENTS AMID GENERAL WEAKNESS IN MINING SHARES G. T. E. CORPORATION SAID ITS FEDERAL SYSTEMS DIVISION RECEIVED A NINETEEN MILLION DOLLAR CONTRACT TO DESIGN A NATIONAL MEDICARE CLAIMS PROCESSING SYSTEM FOR THE U. S. DEPARTMENT OF HEALTH AND HUMAN SERVICES P. N. C. BANK CORPORATION PITTSBURGH COMPLETED ITS ACQUISITION OF UNITED FEDERAL BANCORP INCORPORATED IN STATE COLLEGE PENNSYLVANIA P. N. C. WHICH HAS ABOUT SIXTY TWO BILLION DOLLARS IN ASSETS PAID THIRTY TWO DOLLARS AND FIFTY CENTS A SHARE IN CASH OR ABOUT ONE HUNDRED SIXTY SIX MILLION DOLLARS UNITED FEDERAL HAS ABOUT NINE HUNDRED MILLION DOLLARS IN ASSETS RUBBERMAID INCORPORATED WOOSTER OHIO SAID IT IS NO LONGER IN TALKS WITH TOTER INCORPORATED ABOUT ACQUIRING THE CLOSELY HELD MAKER OF WHEELED CARTS FOR AUTOMATED MUNICIPAL WASTE COLLECTION TALKS BEGAN IN SEPTEMBER WHEN THE COMPANIES ANNOUNCED A LETTER OF INTENT HAD BEEN SIGNED TOTER IS BASED IN STATESVILLE N. C. DRESSER INDUSTRIES INCORPORATED DALLAS COMPLETED ITS ACQUISITION OF BAROID CORPORATION HOUSTON FOR EIGHT HUNDRED FIFTY MILLION DOLLARS BOTH COMPANIES ARE ENERGY SERVICES CONCERNS CADENCE DESIGN SYSTEMS INCORPORATED SAN JOSE CALIFORNIA SAID IT WON A THREE YEAR THIRTY MILLION DOLLAR CONTRACT TO INSTALL ITS DESIGN AUTOMATION SOFTWARE AT SHARP CORPORATION A LEADING JAPANESE MAKER OF ELECTRONIC EQUIPMENT SHARP WILL INITIALLY USE CADENCE'S SYSTEMS IN THE DESIGN OF INTEGRATED CIRCUITS AND EXPECTS TO CUT DESIGN CYCLES BY A FACTOR OF TEN CADENCE SAID REYNOLDS AND REYNOLDS COMPANY CITING A STRONG PRODUCT LINEUP AND AGGRESSIVE SALES EFFORTS PROJECTED DOUBLE DIGIT PERCENTAGE SALES AND OPERATING EARNINGS GAINS FOR THE YEAR ENDING SEPTEMBER THIRTIETH IN FISCAL NINETEEN NINETY THREE REYNOLDS AND REYNOLDS EARNED FIFTY TWO POINT FIVE MILLION DOLLARS OR TWO DOLLARS AND FORTY CENTS A SHARE BEFORE ACCOUNTING CHARGES AFTER THE CHARGES REYNOLDS AND REYNOLDS EARNED THIRTY THREE POINT FOUR MILLION DOLLARS OR ONE DOLLAR AND FIFTY THREE CENTS A SHARE SALES IN FISCAL NINETEEN NINETY THREE TOTALED SIX HUNDRED NINETY SIX POINT SIX MILLION DOLLARS AND THE DAYTON OHIO COMPANY SAID IT EXPECTS TO ACHIEVE A RETURN ON EQUITY OF AROUND TWENTY PERCENT IN THE CURRENT YEAR COMPARED WITH TWENTY POINT TWO PERCENT IN FISCAL NINETEEN NINETY THREE BEFORE THE ACCOUNTING CHARGES A SPOKESMAN SAID THE COMPANY IS EXPERIENCING STRONG SALES IN SEVERAL PRODUCT LINES INCLUDING ITS ERA COMPUTER SYSTEM FOR AUTOMOBILE DEALERS REYNOLDS AND REYNOLDS IS A SUPPLIER OF INFORMATION PROCESSING SYSTEMS INCLUDING BUSINESS FORMS AND COMPUTER SYSTEMS TO AUTOMOTIVE PROFESSIONAL MEDICAL AND GENERAL BUSINESS MARKETS THE NEW YORK STOCK EXCHANGE ANNOUNCED SIX NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS THE BIG BOARD ALSO BEGAN TRADING QUANTUM RESTAURANT GROUP INCORPORATED ROSLYN HEIGHTS N. Y. A RESTAURANT OPERATOR PREVIOUSLY TRADED OVER THE COUNTER AND ROWE FURNITURE CORPORATION SALEM VIRGINIA A FURNITURE MAKER UNDER ROW WHICH PREVIOUSLY TRADED ON THE AMERICAN STOCK EXCHANGE I HAVE A ONE HUNDRED THIRTY FIVE DOLLAR HAT A STETSON XXXX BEAVER SILVER BELLY QUOTE RANCHER QUOTE THERE'S A HOLE BURNED IN THE FRONT OF THE CROWN AND IF IT IS ANYBODY'S FAULT IT'S JOHN F. KENNEDY'S OUR THIRTY FIFTH PRESIDENT YOU MIGHT RECALL DIDN'T WEAR A HAT AFTER HIS INAUGURATION IN NINETEEN SIXTY ONE THEREUPON NINETY EIGHT PERCENT OF AMERICAN MEN TOOK THEIR CUE AND DOFFED THEIR HATS GIVING UP ONE OF THE MOST PRACTICAL ITEMS OF MALE ADORNMENT EVER TO COME DOWN THROUGH THE CENTURIES NO PRESIDENT SINCE THEN EXCEPT POSSIBLY LYNDON JOHNSON HAS WORN A HAT A HAT KEEPS THE SUN OUT OF THE EYES AND THE RAIN OFF THE SCALP THE STRAW HAT KEEPS THE HEAD COOL IN THE SUMMER AND THE FELT HAT KEEPS IT WARM IN THE WINTER IT CAN BE TIPPED IN RESPECT OR TOSSED IN THE AIR IN ECSTASY IN EMERGENCIES IT CAN BE USED TO FAN A SPARK INTO A FLAME OR LIFT A DRINK OF WATER OUT OF A STREAM FOR YOU OR YOUR HORSE NONE OF THESE ATTRIBUTES CAN BE CLAIMED BY BASEBALL CAPS MOTORCYCLE HELMETS OR THOSE LITTLE WOOL HEAD COVERINGS THAT CAN BE WADDED UP AND STUFFED IN A COAT POCKET AND THEREFORE DO NOT QUALIFY AS TRUE HATS THE KENNEDY INSPIRED WHOLESALE ABANDONMENT OF THE HAT THREE DECADES AGO HAS WROUGHT HARDSHIPS ON THOSE FEW OF US WHO HAVE PERSISTED IN WEARING A HAT TAKE THE PROBLEM OF GOING TO THE MOVIES BEFORE NINETEEN SIXTY ONE ALMOST EVERY THEATER DOWN TO THE LOCAL MOVIE HOUSE HAD A U. SHAPED WIRE RACK WELDED TO THE UNDERSIDE OF AT LEAST EVERY OTHER SEAT THE HAT WEARER SIMPLY TURNED HIS HAT UPSIDE DOWN AND SLIPPED IT INTO THE RACK SO THAT IT HUNG BY THE BRIM OUT OF MIND AND OUT OF THE WAY TODAY NOT A SINGLE SEAT IN ANY THEATER IN THESE UNITED STATES RETAINS SUCH A RACK OBVIOUSLY A HAT CANNOT BE WORN IN A THEATER WITHOUT RISKING PHYSICAL VIOLENCE FROM THOSE IN THE NEXT ROW BACK SO THE HAT HAS TO BE LAID ON THE ADJACENT SEAT AND THE OWNER MUST BE READY AT ANY MOMENT TO JERK IT OUT OF THE WAY SHOULD A LATECOMER WISH TO OCCUPY THAT SEAT THE HAT CAN BE LAID ON THE FLOOR UNDERNEATH THE SEAT BUT CHANCES ARE IT WILL BE STAINED BY PUDDLES OF SPILLED SODA AND SPRINKLINGS OF POPCORN OTHERWISE THE HAT OWNER MUST SIT THROUGH THE WHOLE EVENING HOLDING HIS LEGS CLOSE ENOUGH TOGETHER TO KEEP THE HAT FROM SLIPPING TO THE FLOOR EVEN THE LEGITIMATE THEATERS OF BROADWAY WHICH ONCE ACCOMMODATED ALL KINDS OF HATS INCLUDING SILK ONES HAVE REMOVED THE WIRE RACKS FROM THE SEATS CHECK THE HAT HA THEATERS RESTAURANTS AND NIGHTCLUBS USED TO HAVE HATCHECK GIRLS WHO KNEW EXACTLY HOW TO HANDLE A HAT DOWN TO BRUSHING IT OFF BEFORE RETURNING IT TO THE CUSTOMER NO SUCH EMPLOYEE EXISTS TODAY SOME THEATERS AND RESTAURANTS HAVE A RELIC CALLED A COAT CHECK PERSON BUT HAND ONE OF THESE PERSONS A HAT AND YOU'LL GET A LOOK OF PUZZLEMENT IN RETURN IT CAN'T BE PUT ON A COAT HANGER AFTER A MOMENT THE CHECKER'S WANDERING GAZE NOTICES A SHELF ABOVE THE COAT RACK AND ENLIGHTENMENT DAWNS SOME OLD TELEPHONE DIRECTORIES ARE PUSHED ASIDE AND THE HAT IS LAID ON THE SHELF BRIM DOWN NOW IN THE OLD DAYS IF THERE WERE NO HOOKS ON WHICH TO HANG HATS AN EXPERIENCED HATCHECK GIRL KNEW NEVER TO LAY A HAT ON ITS BRIM SINCE THIS WOULD RISK GETTING THE HIGHLY VISIBLE UNDERSIDE OF THE BRIM DIRTY SHE WOULD LAY IT UPSIDE DOWN SO THAT SHOULD THE SHELF BE DUSTY THERE WOULD BE ONLY A THIN BARELY NOTICEABLE LINE OF DUST AROUND THE TOP OF THE CROWN WHICH COULD BE QUICKLY BRUSHED OFF TO HAND A HAT TO A RESTAURANT COAT CHECKER TODAY RISKS INCURRING A TWENTY FIVE DOLLAR CLEANING BILL PROVIDED ONE CAN FIND A DRY CLEANER WHO CAN STILL CLEAN AND BLOCK A HAT THERE ARE ONLY THREE LEFT IN ALL OF MANHATTAN ANYONE WALKING INTO A CAFE OR A HONKYTONK IN THE SOUTHWEST THESE DAYS WILL SEE AN ACRE OF HATS BOBBING OVER A BOWL OF CHILI OR CIRCLING AROUND IN A TEXAS TWO STEP THIS ISN'T A FLOUTING OF THE ETIQUETTE OF THE OLD WEST JOHN WAYNE WOULD NEVER WEAR HIS HAT AT THE TABLE OR WHILE DANCING WITH THE SCHOOL MARM IT'S JUST THAT THESE ERSTWHILE COWPOKES HAVE NO PLACE TO HANG THEIR HATS EXCEPT ON THEIR HEADS EVEN IN TEXAS AND THEREIN LIES THE EXPLANATION FOR THE HOLE BURNED IN MY STETSON XXXX SILVER BELLY THIS HAT IF YOU'RE WONDERING IS A KIND OF MODERN HIGHER CROWN VERSION OF THE HAT GARY COOPER WORE IN HIGH NOON EXCEPT IT'S A SILVER BELLY GRAY INSTEAD OF THE BLACK THAT COOPER WORE EVEN THOUGH HE WAS THE GOOD GUY EACH WEDNESDAY MY FRIEND BEN PATRUSKY AND I HAVE LUNCH IN A LOWER MANHATTAN SALOON IT HAS THE COMFORTABLE FEEL OF ONE OF THOSE OLD NEW YORK BARS LEFT OVER FROM THE LAST CENTURY AND THE FOOD IS EXCELLENT AND INEXPENSIVE BUT UNLIKE THE SALOONS OF THE LAST CENTURY THERE IS NO PLACE TO PUT A HAT THERE IS NO COAT CHECK PERSON MUCH LESS A HATCHECK GIRL AND THE HOOKS ON THE WALL ON WHICH CUSTOMERS HANG THEIR COATS ARE TOO SHORT TO HOLD A TRUE HAT THERE IS HOWEVER A LITTLE NOTICED CLOSET WHERE THE WAITRESSES HANG THEIR COATS IT REMAINS SHUT UNTIL EARLY EVENING WHEN THE SHIFT CHANGES THE HOOKS THEREIN ALSO ARE TOO SHORT TO TAKE A HAT BUT THERE IS A RARELY USED BALD LIGHT BULB THAT STICKS OUT PERPENDICULAR TO THE WALL THE BULB ACCOMMODATES A STETSON XXXX BEAVER SILVER BELLY RANCHER PERFECTLY AND HAD DONE SO EVERY WEDNESDAY FOR MORE THAN THREE YEARS UNTIL THE OTHER DAY DURING THE LUNCH HOUR SOMEONE WHO OBVIOUSLY WAS BORN AFTER NINETEEN SIXTY ONE AND THOUGHT MY HAT WAS SOME KIND OF NEW LAMPSHADE TURNED THE BULB ON AND LEFT IT ON I'M THINKING ABOUT SENDING THE BILL FOR A NEW HAT TO TEDDY KENNEDY MR. BISHOP COVERS SCIENCE TECHNOLOGY AND MEDICINE FOR THE JOURNAL NISSAN MOTOR COMPANY SAID IT WILL END PRODUCTION OF SOME OF ITS COMPACT CARS BY FUJI HEAVY INDUSTRIES LIMITED CUTTING A KEY LIFELINE TO THE SMALL JAPANESE AUTO MAKER FUJI HEAVY THE MAKER OF SUBARU CARS AND A FOUR POINT TWO PERCENT OWNED AFFILIATE OF NISSAN HAS BEEN PRODUCING SIXTY THOUSAND PULSAR COMPACT CARS ANNUALLY FOR NISSAN SINCE NINETEEN NINETY ONE A NISSAN SPOKESMAN SAID THE TWO COMPANIES WILL STOP THE ARRANGEMENT WHEN THE ORIGINAL CONTRACT EXPIRES EARLY NEXT YEAR THE SUPPLY DEAL HAS BEEN IMPORTANT TO FUJI HEAVY WHICH EXPECTS TO POST A TWENTY NINE BILLION YEN TWO HUNDRED SIXTY MILLION DOLLARS PRETAX LOSS FOR FISCAL NINETEEN NINETY FOUR ENDING MARCH THIRTY FIRST PULSAR PRODUCTION ACCOUNTS FOR ABOUT TEN PERCENT OF THE CARS FUJI HEAVY MAKES AND PULSAR SALES ACCOUNT FOR EIGHT PERCENT OF FUJI HEAVY'S REVENUE PULSARS ARE SOLD IN JAPAN AND IN EUROPE CANCELING THE DEAL MAKES SENSE FOR NISSAN BECAUSE IT WILL ALLOW JAPAN'S AILING NUMBER TWO AUTO MAKER TO MAKE BETTER USE OF ITS IDLE DOMESTIC FACTORIES NISSAN'S VEHICLE OUTPUT IN JAPAN PLUNGED FOURTEEN POINT FIVE PERCENT IN CALENDAR NINETEEN NINETY THREE AND THE COMPANY EXPECTS TO POST A FORTY BILLION YEN OPERATING LOSS FOR FISCAL NINETEEN NINETY FOUR ENDING MARCH THIRTY FIRST REYNOLDS METALS COMPANY NAMED JEREMIAH J. SHEEHAN FIFTY FIVE YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER THE ALUMINUM CONCERN ALSO NAMED RANDOLPH N. REYNOLDS FIFTY TWO A VICE CHAIRMAN THE MOVES WERE DESIGNED TO QUOTE SUPPORT OUR STRATEGIC GOALS AND PROVIDE FOR STRONG FUTURE SUCCESSION QUOTE CHAIRMAN AND CHIEF EXECUTIVE RICHARD G. HOLDER SAID IN A STATEMENT ASKED ABOUT WHETHER THE MOVE INDICATED MR. REYNOLDS WOULD BE HEIR APPARENT TO THE CHAIRMAN'S POST AND MR. SHEEHAN TO THE CHIEF EXECUTIVE'S POST A COMPANY SPOKESMAN REPLIED IT IS PREMATURE TO MAKE ANY ASSUMPTIONS RIGHT NOW MR. SHEEHAN PREVIOUSLY AN EXECUTIVE VICE PRESIDENT RESPONSIBLE FOR FABRICATED PRODUCTS ASSUMES A POST THAT HAS BEEN VACANT SINCE APRIL NINETEEN NINETY TWO WHEN MR. HOLDER NOW SIXTY TWO WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR. SHEEHAN ALSO WAS NAMED A DIRECTOR INCREASING THE BOARD TO FIFTEEN MEMBERS MR. SHEEHAN'S EXPERIENCE AND LEADERSHIP WILL BE CRITICAL TO OUR GROWTH IN VALUE ADDED PRODUCTS AND MR. REYNOLDS TO OUR GOAL OF GLOBAL EXPANSION MR. HOLDER SAID MR. REYNOLDS GRANDSON OF THE COMPANY'S FOUNDER AND A PREVIOUS BOARD MEMBER WILL SHARE THE VICE CHAIRMAN'S TITLE WITH YALE M. BRANDT SIXTY THREE MR. REYNOLDS WAS EXECUTIVE VICE PRESIDENT OF INTERNATIONAL HE AND MR. SHEEHAN WERE AMONG FIVE EXECUTIVE VICE PRESIDENTS NORTH KOREA MAY BE THE MOST VEXING PLACE ON EARTH RIGHT NOW WHILE IT OBSERVES THE DIPLOMATIC FORMS PUNCTILIOUSLY AT A FUNDAMENTAL LEVEL IT JUST DOESN'T OPERATE LIKE THE REST OF US NORTH KOREA'S WEIRDNESS WOULDN'T MATTER SO MUCH IF IT WERE SOME HARMLESS BACKWATER IT IS NOT IT IS NOW PLAYING CHICKEN WITH ITS NUCLEAR PROGRAM REFUSING TO ALLOW INSPECTIONS TO WHICH IT IS SUBJECT UNDER THE NUCLEAR NON PROLIFERATION TREATY DESPITE RECENT TALK OF PROGRESS ON INSPECTIONS NORTH KOREA ON FRIDAY DENOUNCED THE INTERNATIONAL ATOMIC ENERGY AGENCY'S QUOTE ABSURD QUOTE ASSERTION THAT THE KOREANS WERE MAKING SERIOUS INSPECTIONS IMPOSSIBLE ALL THE NORTH KOREANS HAD DONE WAS TELL THE AGENCY THAT REGULAR INSPECTIONS OF ITS CIVILIAN SITES WOULD BE FORBIDDEN AND A LOOK AT TWO UNDECLARED SITES WAS OUT OF THE QUESTION MEANWHILE PRESIDENT CLINTON WAS TELLING C. N. N. LAST WEEK IT'S CLEAR THE NORTH KOREANS ARE TRYING TO DEVELOP THE BOMB MR. CLINTON'S REACTION TO THIS IS THAT THE U. S. WILL CONTINUE TO WORK VERY HARD AND TO BE VERY FIRM ABOUT NOT WANTING KOREA TO JOIN THE FAMILY OF NUCLEAR STATES WE'RE NOT REASSURED IT NOW MUST BE CLEAR TO THE MOST CAUTIOUS OF COMPROMISERS THAT THE USUAL COMBINATION OF CARROTS AND STICKS OR IN THE CASE OF THE NEGOTIATIONS WITH THE U. S. CARROTS AND CARROTS SIMPLY HASN'T WORKED THE C. I. A. THINKS THAT PYONGYANG ALREADY HAS A BOMB OR TWO IN NOVEMBER PRESIDENT CLINTON FLATLY SAID THE U. S. COULD NOT ALLOW THIS AND IN THE TREMENDOUS EFFORT TO GET INSPECTIONS OF SOME KIND WE DIDN'T HEAR MUCH ABOUT WHAT THE CONSEQUENCES WOULD BE IF SOMETHING TRULY BAD WAS FOUND THE U. S. SIDE HAS OFFERED LOTS OF BLANDISHMENTS CANCELLATION OF ANNUAL MILITARY EXERCISES HIGH LEVEL TALKS AND THE POSSIBILITY OF AID AND DIPLOMATIC RELATIONS THAT NORTH KOREA WOULD LIKE TO HAVE ALL THESE CARROTS HAVE NOT APPEARED TO DIM PYONGYANG'S DETERMINATION TO DO WHATEVER IT IS DOING THE ASSUMPTION MUST THEREFORE BE THAT NORTH KOREA IS DETERMINED TO HAVE ITS BOMB WOULD PYONGYANG USE IT MAYBE NOT THAT IS THE ONE THING THAT COULD PROVOKE RETALIATION BUT THERE ARE SOME TROUBLING SIGNS TO CONSIDER JANE'S DEFENSE WEEKLY HAS REPORTED ON THE DEVELOPMENT OF THE NODONG ONE SHORT TO INTERMEDIATE RANGE BALLISTIC MISSILE AND RUSSIA THROUGH A JAPANESE COMPANY HAS JUST SOLD FORTY ATTACK SUBMARINES TO PYONGYANG THESE SUBS ALL ANCIENT BY NAVAL STANDARDS WERE SUPPOSEDLY SOLD FOR SCRAP METAL BUT WE THINK SKEPTICISM IS THE BETTER PART OF DIPLOMACY HERE AFTER ALL GIVEN THE STATE OF NORTH KOREAN INDUSTRY IT WOULD BE CHEAPER TO STRIP A FEW DISUSED LOCAL PLANTS FOR SCRAP INSTEAD OF SPENDING PRECIOUS HARD CURRENCY ON OLD SUBS THERE HAS ALSO BEEN MUCH TALK IN THE OFFICIAL PRESS OF REUNIFICATION IN NINETEEN NINETY FIVE A PYONGYANG TIMES EDITORIAL LAST WEEK NOTED WITH A SENSE OF URGENCY IT IS OUR NATION'S SUPREME TASK TO REUNIFY THE COUNTRY IN THE NINETIES AND HAND DOWN A REUNIFIED COUNTRY TO GENERATIONS TO COME AND IN DECEMBER A COMMUNIQUE AFTER THE CENTRAL COMMITTEE PLENUM SAID THAT THE ECONOMY WAS ROTTEN BLAMING WESTERN AGGRESSION FOR THE SITUATION WE COULD NOT BUT TAKE RESOLUTE SELF DEFENSE MEASURES THE COMMUNIQUE NOTED PUTTING THE WHOLE COUNTRY THE ENTIRE PEOPLE AND THE WHOLE ARMY IN A SEMIWAR STATE THAT MAY BE RHETORICAL EXAGGERATION BUT NORTH KOREA IS STILL THE WORLD'S MOST INTENSELY MILITARIZED COUNTRY WITH THE LEAST PREDICTABLE LEADERSHIP SUCH PRONOUNCEMENTS BEAR WATCHING UNDER THESE CIRCUMSTANCES ONE HAS TO QUESTION PRESIDENT CLINTON'S REFLEX IN OFFERING MORE AND MORE CONCESSIONS TO ENTICE GOOD OR AT LEAST NOT AWFUL BEHAVIOR FROM THE REGIME THE LESSON THAT KIM IL SUNG AND IRAQ AND IRAN AND LIBYA COULD EASILY DRAW IS THAT BAD BEHAVIOR PAYS FOR ALL THESE REASONS WE THINK IT'S TIME TO BRANDISH THE STICK YES WE KNOW CHINA IS NOT KEEN TO BE TOO TOUGH ON ITS SOCIALIST NEIGHBOR AND WE KNOW JAPAN DOESN'T WANT TO STOP THE FLOW OF FUNDS TO NORTH KOREA AND WE KNOW THE U. N. CAN'T BE EXPECTED TO DO MUCH STILL AT SOME POINT SERIOUSNESS AND CREDIBILITY DEMAND THAT PYONGYANG BEGIN TO INCUR A COST FOR ITS ACTIONS THREE TOP BELGIAN POLITICIANS DUBBED THE QUOTE THREE GUYS QUOTE BECAUSE THEY ALL HAVE THE SAME FIRST NAME RESIGNED FRIDAY AMID A BRIBERY SCANDAL THAT HAS SHAKEN THE CENTER LEFT COALITION GOVERNMENT THE THREE SENIOR SOCIALISTS ARE WANTED FOR QUESTIONING BY THE EXAMINING MAGISTRATE IN THE AFFAIR DEPUTY PRIME MINISTER GUY COEME'S OWN SOCIALIST PARTY IS AT THE CENTER OF THE SCANDAL IN WHICH BRIBES ALLEGEDLY WERE PAID BY AN ITALIAN COMPANY AGUSTA TO SECURE A HELICOPTER CONTRACT IN NINETEEN EIGHTY EIGHT MR. COEME'S RESIGNATION COULD EASE PRESSURE ON THE COALITION AN UNEASY MIX OF SOCIALIST AND CHRISTIAN DEMOCRAT PARTIES THE PRESIDENT OF THE REGIONAL WALLOON GOVERNMENT AND FORMER SOCIALIST PARTY CHIEF GUY SPITAELS AND ONE OF HIS MINISTERS GUY MATHOT ALSO RESIGNED ALL HAVE STRONGLY DENIED WRONGDOING IN THE AFFAIR HONG KONG LEGISLATORS VOTED IN FAVOR OF TWO HUNDRED SIXTEEN MILLION DOLLARS IN INTERIM FINANCING FOR THE COLONY'S NEW AIRPORT DEFYING CHINESE WARNINGS AGAINST DECIDING FUNDING ISSUES ALONE THE VOTE FOLLOWED DISCLOSURES THAT LAWMAKERS HAD OFFERED TO INJECT EXTRA GOVERNMENT FUNDS AS PART OF AN OVERALL AIRPORT FINANCING PROPOSAL TO CHINA THE TWENTY POINT TWO BILLION DOLLAR PROJECT IS A MAJOR BONE OF CONTENTION BETWEEN BRITAIN AND CHINA WHICH REGAINS CONTROL OF THE COLONY IN NINETEEN NINETY SEVEN BEIJING FEARS THAT THE PROJECT WHICH IS NEEDED TO REPLACE THE OVERBURDENED KAI TAK AIRPORT WILL SADDLE THE COLONY WITH DEBTS AFTER NINETEEN NINETY SEVEN AND ARGUED THAT BRITAIN AND CHINA SHOULD REACH OVERALL AGREEMENT ON FINANCING BEFORE WORK PROCEEDS FRANCE'S CONSERVATIVE SENATE PASSED STRICT LIMITS ON ARTIFICIAL FERTILIZATION AND GENETIC ENGINEERING AMID CONCERN OVER POSSIBLE ABUSE OF RAPID ADVANCES IN ARTIFICIAL FERTILIZATION TECHNIQUES THE CONCERNS AROSE FOLLOWING THE BIRTH OF TEST TUBE TWINS TO A FIFTY NINE YEAR OLD BRITISH WOMAN AND REPORTS THAT A BLACK WOMAN IN ITALY RECEIVED A WHITE EMBRYO THE GOVERNMENT ARGUED THAT FERTILIZATION OF AGING WOMEN WOULD BE HAZARDOUS TO THE MOTHER'S HEALTH AND UNFAIR TO CHILDREN LIKELY TO BE ORPHANED EARLY IF THE LOWER HOUSE PASSES THE BILLS ARTIFICIAL FERTILIZATION WILL BE LIMITED TO HETEROSEXUAL AND INFERTILE COUPLES OF CHILDBEARING AGE WHO HAVE BEEN MARRIED OR LIVING TOGETHER FOR AT LEAST TWO YEARS ABOUT TEN THOUSAND DOCTORS IN BANGLADESH GOVERNMENT HOSPITALS ENDED A NINE DAY STRIKE THAT HOSPITAL OFFICIALS SAID COST THE LIVES OF MORE THAN ONE HUNDRED PATIENTS THE DOCTORS RETURNED TO WORK AFTER THE GOVERNMENT AGREED TO THEIR DEMANDS FOR INCREASED WAGES AND JOB SECURITY IN THREE MONTHS THE BANGLADESH MEDICAL ASSOCIATION HAD THREATENED TO SPREAD THE STOPPAGE TO PRIVATE CLINICS WHERE IT SAYS ABOUT FIVE THOUSAND OF ITS MEMBERS WORK ASSOCIATION LEADERS SAID THEY WOULD STRIKE AGAIN IF THE GOVERNMENT FAILED TO KEEP ITS PROMISE EUROPEAN GOVERNMENTS AND COMPANIES ARE BLAMING EACH OTHER FOR COMPUTER PROBLEMS THAT ARE DELAYING PLANS TO CREATE A FREE TRAVEL ZONE IN EUROPE ATTEMPTS TO TEAR DOWN BORDERS ARE BEING FRUSTRATED BY OBSTACLES TO SETTING UP A BIG COMPUTER NETWORK GIVING COUNTRIES ACCESS TO ONE ANOTHER'S POLICE AND IMMIGRATION FILES SEMA THE FRENCH COMPANY OVERSEEING THE PROJECT SAYS GOVERNMENTS HAVE BEEN SLOW TO LINK THEIR DATA BANKS BUT A GERMAN OFFICIAL SAYS SEMA WAS RESPONSIBLE FOR THAT LINK NINE NATIONS HAVE AGREED TO A BORDER FREE ZONE FRANCE GERMANY BELGIUM THE NETHERLANDS LUXEMBOURG ITALY SPAIN GREECE AND PORTUGAL A NEW CODE OF CONDUCT FROM BRITAIN'S ARMY FORBIDS HOMOSEXUALITY AND ADULTERY AND DISCOURAGES MARRIAGES BETWEEN OFFICERS AND LOWER RANKS THE STANDARDS AND DISCIPLINE PAPER CALLED ADULTERY IN THE ARMED FORCES THE MOST SERIOUS FORM OF SOCIAL MISCONDUCT THE CODE WHICH ALSO COVERS ISSUES SUCH AS ALCOHOLISM BULLYING AND RACIAL AND SEX DISCRIMINATION DISCOURAGES MARRIAGES ACROSS RANKS SAYING THAT SUCH RELATIONSHIPS UNDERMINE A WELLORDERED STRUCTURE THE ARMY RESTATED ITS VIEW THAT HOMOSEXUALITY WAS NOT ACCEPTABLE IN THE MILITARY THOSE WHO ENGAGE IN HOMOSEXUAL PRACTICES ARE NORMALLY DISCHARGED FROM THE BRITISH ARMED FORCES TAKING CONTROL OF A BIG STATE COMPANY IN LITHUANIA REQUIRES IDEAS MORE THAN MONEY UNDER THE COUNTRY'S NEW BEST BUSINESS PLAN PRIVATIZATION PROGRAM THE PROGRAM ALLOWS SAVVY MANAGERS TO ACQUIRE PROBLEM OR HIGHLY INDEBTED FIRMS FOR LITTLE OR NO MONEY AS LONG AS THEY HAVE A CLEVER RESCUE PLAN THE PROGRAM AIMED AT BREAKING A DEADLOCK IN THE SELL OFF OF SOME OF THE COUNTRY'S BIGGEST AND MOST TROUBLED COMPANIES CURRENTLY IS BEING TRIED ON SIX PILOT PROJECTS BUT AT LEAST THREE HUNDRED COMPANIES COULD EVENTUALLY QUALIFY SOME POLITICIANS CRITICIZE THE PROGRAM AS A GIVEAWAY BUT WESTERN ADVISERS IN LITHUANIA SAY THE GOVERNMENT SLOWLY IS WINNING BROAD SUPPORT FOR THE SCHEME THE PROGRAM IS OPEN TO FOREIGN AND DOMESTIC INVESTORS PROSPECTIVE BUYERS MUST HAVE A BUSINESS PLAN THAT SHOWS HOW THE NEW MANAGEMENT WILL DEAL WITH COSTS OF ACQUISITION AND RESTRUCTURING ROMANIA'S RAILWAYS WILL LAY OFF TWENTY THOUSAND WORKERS THIS YEAR AND MOTHBALL HALF THEIR TRAINS AS PART OF A PLAN TO MAKE THE SYSTEM MORE VIABLE A MALAYSIAN BUS DRIVER WAS FIRED AFTER HE REFUSED TO CUT HIS NEARLY SIX INCH FINGERNAILS MANY APPROVE OF FRIDAY'S DECISION BY A JURY THAT LORENA BOBBITT WAS NOT GUILTY OF DISMEMBERING HER HUSBAND THEY ARGUE THAT THE NEWS REPRESENTS A ROUGH KIND OF QUOTE TIT FOR TAT QUOTE JUSTICE YET THE BOBBITT JURY'S JUDGMENT THAT MRS. BOBBITT HAD ACTED WHILE TEMPORARILY INSANE IS A DEEPLY PROBLEMATIC ONE THE VERDICT REFLECTS A WIDENING CULTURAL DIVIDE THAT IS SLOWLY DELEGITIMIZING ANY TRADITIONAL SENSE OF JUSTICE IN THIS COUNTRY BY CHOOSING TO FREE LORENA BOBBITT THE MANASSAS JURY SET A PRECEDENT THAT WILL REDEFINE AMERICAN NOTIONS OF ACCURACY THINK FOR A MOMENT ABOUT THE BOBBITT CASE AND ABOUT ANOTHER CASE THAT HAS BEEN IN THE NEWS LATELY THE MENENDEZ BROTHERS' TRIAL FOR MURDERING THEIR PARENTS ASSUME THAT IN FACT WHAT THE DEFENSE IN EACH CASE HAS ARGUED IS TRUE THAT LORENA BOBBITT WAS INDEED THE PATHETIC VICTIM OF PHYSICAL ABUSE HUMILIATION AND SEXUAL TORMENT THAT THE MENENDEZ BROTHERS WERE ABUSED BY THEIR PARENTS AND SO DESERVE FREEDOM SUCH ABUSE IS HEINOUS BUT WITH REGARD TO THE QUESTION OF GUILT THE RESOUNDING ANSWER IN THESE CASES STILL HAS TO BE SO WHAT THIS IS NOT A CALLOUS ANSWER OF COURSE WE SYMPATHIZE OF COURSE OTHER LEGAL AND SOCIAL STEPS E. G. LEAVING HOME SUING SEEKING COURT INJUNCTIONS GETTING A DIVORCE ARE EMINENTLY IMPORTANT THAT'S THE POINT OF A CIVIL SOCIETY THERE ARE CIVILIZED PROCEDURES FOR DEALING WITH OUR PROBLEMS WITH EACH OTHER LORENA BOBBITT AND HER LAWYERS HOWEVER WENT A DIFFERENT PATH THREE PSYCHIATRISTS AND LEGAL EXPERTS TESTIFIED THAT HERS WAS NOT IRRESISTIBLE IMPULSE BUT AN IMPULSE THAT SHE DID NOT RESIST NEVERTHELESS MS. BOBBITT'S SUPPORTERS FOUND ENOUGH MEMBERS OF THE LEGAL AND SOCIAL WORK ESTABLISHMENT TO BUILD A CASE THE ASSOCIATED PRESS HAS REPORTED THAT A DOCTOR SUSAN FIESTER WHO INTERVIEWED MRS. BOBBITT FOR THIRTEEN HOURS DESCRIBED HER BEHAVIOR AT THE TIME OF THE VIOLENCE AS A BRIEF REACTIVE PSYCHOSIS THE JURY ENDED UP BUYING THAT ARGUMENT THE RESULT IS THAT THEY ALLOWED HER TO IMPINGE ON THE RIGHTS OF OTHERS MR. BOBBITT AND SANCTIONED PERSONAL VIGILANTISM THE BOBBITT VERDICT DERIDES ALL OTHER SPOUSES MEN AND WOMEN WHO HAVE BEEN ABUSED AS SHE WAS AND WHO NONETHELESS WENT THROUGH THE TEDIUM AND HELL OF COURT ORDERS INSTEAD OF RESORTING TO MALICIOUS WOUNDING IT ALSO SENDS AN ENGRAVED INVITATION TO BYPASS SUCH PROCEDURE IN FUTURE GIVEN THAT SIGNAL IMAGINE WHAT A NOT GUILTY VERDICT FOR THE MENENDEZ BROTHERS COULD MEAN THEIR JUDGE STANLEY WEISBERG HAS BEEN FACED WITH A CASE THAT HAS BEEN CONVERTED FROM A TRIAL OF CONFESSED MURDERERS THE SONS TO THE TRIAL OF THE VICTIMS MR. AND MRS. MENENDEZ AND THEIR PARENTING SKILLS WHEN DEFENSE ATTORNEY JILL LANSING ASKED THAT A PSYCHIATRIC EVALUATION OF THE SONS' MOTHER THAT SHOWED SHE WAS DIAGNOSED AS A BORDERLINE SCHIZOID BE ENTERED INTO EVIDENCE THE JUDGE SAID THAT QUOTE THE ISSUE HERE IS HOW SHE BEHAVED NOT HOW SHE WAS DIAGNOSED QUOTE NEVERTHELESS ACCORDING TO THE LOS ANGELES DAILY NEWS A UNIVERSITY OF WASHINGTON SOCIAL WORK PROFESSOR TOLD THE JURY THAT THE KIND OF ABUSE THE MENENDEZ BROTHERS ALLEGE TO HAVE ENDURED EXPLAINS ADULT BEHAVIOR AMERICAN JURIES ARE BEING TOLD THAT THE INDIVIDUAL IS NOT RESPONSIBLE FOR HIS OWN ACTIONS PART OF THE PROBLEM IS A GENUINE AMERICAN CONFUSION OF COMPASSION A PERSONAL VIRTUE WITH JUSTICE WE FORGET THAT JUSTICE IS CONSIDERED THE FOREMOST POLITICAL VIRTUE FOR A REASON IT PROVIDES THE GLUE OF SOCIETY A SENSE OF JUSTICE IS WHAT PRECLUDES PEOPLE TAKING MATTERS INTO THEIR OWN HANDS WHEN THAT SENSE OF JUSTICE BREAKS DOWN AS IT DID IN THE BOBBITT TRIAL YOU INVITE SOCIAL CHAOS WHAT THE BOBBITT TRIAL TELLS AMERICANS IS THAT WHAT MATTERS IS NO LONGER WHAT YOU DID BUT HOW OTHERS SAY YOU MADE THEM FEEL AS LORENA BOBBITT'S ATTORNEY SAID WE ARE NOT DISPUTING WHERE IT HAPPENED HOW IT HAPPENED WHO DID IT THE NORMAL QUESTIONS OF GUILT OR INNOCENCE INSTEAD THE CASE PRESENTED BECOMES FEEL SORRY FOR HER THE JERK DESERVED IT SAME WITH THE MENENDEZ BROTHERS ROTTEN PARENTS POOR ABUSED ORPHANS HOW DID AMERICANS COME TO CONFUSE JUSTICE AND COMPASSION AT THE ROOT OF THE PROBLEM IS WHAT HAS BEEN CALLED THE CULTURE WAR THE TRADITIONAL VIEW SEES PEOPLE AS NEITHER GOOD NOR BAD BUT CAPABLE OF BEING EITHER IT THEREFORE LOOKS TO EITHER GOD OR NATURAL LAW AS THE ULTIMATE ARBITER OF WHAT IS MORAL THIS VIEW WAS THE BASIS FOR EXAMPLE OF THE NUREMBURG TRIALS SINCE MAN MADE LAW SAID THE NAZIS HAD DONE NOTHING WRONG THE NEW SECULAR VIEW BY CONTRAST SEES PEOPLE AS BASICALLY GOOD IT CONCLUDES THAT WE EACH ARE OUR OWN ARBITERS OF RIGHT AND WRONG IN THIS VIEW EVIL IS UNDERSTOOD AS A BYPRODUCT OF SOME EXTERNAL FORCE POVERTY CHILD ABUSE GUNS OF WHICH MAN IS A VICTIM THIS IS A VIEW THAT EXCUSES VICTIMS LIKE LORENA BOBBITT IT IS ALSO A MINDSET THAT PUTS THE RIGHTS OF GROUPS OF VICTIMS BEFORE THOSE OF THE GENERAL INDIVIDUAL THUS A RADICAL FEMINIST ORGANIZATION REPORTEDLY HAD NO QUALMS ABOUT THREATENING TO DISMEMBER BOBBITT STYLE ONE HUNDRED MEN AT RANDOM IF LORENA'S JURY HANDED IN A GUILTY VERDICT THE BRIGHT SIDE OF THE BOBBITT RESULT IS THAT THERE ARE ONE HUNDRED MEN WHO CAN SLEEP SOUNDLY NIGHTS OR CAN THEY WE ARE CREATING A SOCIETY WHERE ANY INTERACTION BETWEEN INDIVIDUALS IS FAST BECOMING AN OPEN ENDED LIABILITY WE HAVE FOR TOO LONG TRAVELED ON A JUVENILE ROAD OF ABANDONING RESPONSIBILITY OF HOLDING EVERYONE AND EVERYTHING ACCOUNTABLE BUT OURSELVES WE HAVE FORGOTTEN THAT RESPONSIBILITY IS CENTRAL TO A FREE SOCIETY WITHOUT SUCH UNDERSTANDING A FREE SOCIETY CANNOT BE FREE FOR LONG MS. RICHARDSON IS A DIRECTOR OF THE COUNCIL ON CULTURE AND COMMUNITY AND A FELLOW AT THE PROGRESS AND FREEDOM FOUNDATION THE THREE CLERICAL WORKERS SLIPPED THEIR RESIGNATION LETTERS ON MY DESK ONE BY ONE TWO SHEEPISHLY ONE SMUGLY HARDLY TWO MONTHS AFTER STARTING WORK THEIR ONE DAY'S NOTICE LEFT OUR OFFICE ALL BUT EMPTY AS AMERICANS NEWLY ARRIVED IN HONG KONG DETERMINED TO SET UP A BUYING AGENCY FOR CHRISTMAS DECORATIONS IN ASIA MY HUSBAND AND I CLEARLY HAD A LOT TO LEARN WHEN WE ARRIVED HERE WE THOUGHT WE KNEW HOW TO OPERATE A BUSINESS MY HUSBAND CAME WITH EXTENSIVE MANUFACTURING ENGINEERING CONSULTING AND EMPLOYEE RELATIONS EXPERIENCE AND I HAD DEVELOPED A BUSINESS UNIT WITHIN A MAJOR AMERICAN DIRECT SALES CORPORATION STILL WITHIN SIX MONTHS OF OUR ARRIVAL WE EXPERIENCED A MORE THAN ONE HUNDRED PERCENT TURNOVER IN OUR STAFF WITH THE HONG KONG UNEMPLOYMENT RATE BELOW TWO PERCENT EMPLOYERS OFTEN FIND THEY DO NOT HAVE THE UPPER HAND HERE ARE SOME OF THE WAYS WE'VE LEARNED TO COPE SPARE NO EXPENSE HIRING A RELIABLE LOCAL OFFICE MANAGER YOUR OFFICE MANAGER WILL SERVE AS YOUR CONFIDANT YOUR WHIP AND YOUR CONDUIT TO THE STAFF LOCAL HIRES MUCH PREFER DISCUSSING PROBLEMS WITH ANOTHER LOCAL HIRE THE IDEA OF TAKING A PROBLEM TO THE BOSS IS PRETTY DAUNTING OFFICE MANAGERS ALSO ALERT YOU TO LOCAL HOLIDAYS AND CUSTOMS TAKE TYPHOONS FOR INSTANCE MY HUSBAND AND I AREN'T EXACTLY FAMILIAR WITH WHAT NEEDS TO BE DONE WHEN A TYPHOON SIGNAL NUMBER EIGHT WHEN EVERYONE IN HONG KONG RUNS FOR COVER GOES UP WHEN TYPHOON QUOTE TASHA QUOTE A NUMBER EIGHT HIT THE TERRITORY LAST SUMMER OUR OFFICE MANAGER TOLD US WHAT TO DO GIVE YOUR OFFICE MANAGER THE TOOLS TO CONVINCE PEOPLE THAT THEY WOULD WANT TO WORK AT YOUR COMPANY WE STILL MAKE THE FINAL DECISION ON HIRING BUT NOW OUR OFFICE MANAGER CONDUCTS ALL PRELIMINARY INTERVIEWS IN CANTONESE AND ENGLISH AND DOES THE BACKGROUND CHECKS WELL BRIEFED ON THE TERRITORY'S LABOR MARKET THE OFFICE MANAGER SPEAKS DIRECTLY TO THE THINGS THAT CONCERN PROSPECTIVE EMPLOYEES MOST MAKING MONEY AND ADVANCING THROUGH THE COMPANY'S RANKS DESIGN A PACKAGE OF PERKS TO LURE THE BEST MOST EXPERIENCED EMPLOYEES INTO YOUR FOLD WE DECIDED TO PAY SALARIES THAT RAN TEN PERCENT TO TWENTY PERCENT ABOVE MARKET LEVELS THERE IS NO GREATER TEMPTATION HERE THAN A WELL PAYING JOB WORKERS WILL LEAVE FOR FIFTY DOLLARS EXTRA A MONTH ALSO WE DESIGNED INCENTIVES DIRECTLY RELATED TO PERFORMANCE THAT COULD LEAD TO TWICE YEARLY BONUSES CREATE A POSITIVE WORKING ENVIRONMENT ENGENDERING A FRIENDLY ATMOSPHERE IN THE OFFICE MAKES IT HARDER FOR EMPLOYEES TO WANDER FROM THE FOLD HOST OCCASIONAL DINNERS AND KARAOKE OUTINGS SPONSOR AN ANNUAL WEEKEND TRIP TO MACAO CELEBRATE BIRTHDAYS WITH A CAKE AND MAYBE A LUNCH FOR THE WHOLE GANG THIS MAKES PEOPLE WANT TO STAY AND ALSO LETS YOU GET TO KNOW YOUR EMPLOYEES THE STUFF FROM WHICH LOYALTY IS GROWN NEVER DIRECTLY CRITICIZE AN EMPLOYEE OUR EMPLOYEES HAVE PROVEN OVERLY SENSITIVE TO CRITICISM OFTEN NO MATTER HOW CONSTRUCTIVELY RELAYED WE QUICKLY DISCOVERED THAT INDIRECTLY COMMUNICATING A PROBLEM IS PREFERABLE IF A CERTAIN ORDER HAS BEEN REPEATEDLY MISHANDLED BY AN EMPLOYEE ASK THE OFFICE MANAGER TO SPEAK WITH HIM ABOUT IT IF YOU DECIDE TO APPROACH THE EMPLOYEE DIRECTLY START BY SAYING I NEED YOUR HELP IN IMPROVING THIS SITUATION DON'T WORRY HE'LL GET YOUR MESSAGE BUT HE'LL ALSO BE REASSURED THAT YOU THE BOSS THINK HE CAN DO THE JOB CONSIDER WOMEN AND YOUNGER PEOPLE OF BOTH SEXES FOR MANAGEMENT POSITIONS WOMEN HAVE EXCELLED IN OUR OFFICE AS HAVE YOUNGER PEOPLE OUR OFFICE MANAGER IS A THIRTY TWO YEAR OLD WOMAN WHO BY HER OWN RECKONING WAS GIVEN MUCH MORE RESPONSIBILITY AT HER AGE THAN WOULD HAVE BEEN POSSIBLE AT OTHER FIRMS CREATING SUCH OPPORTUNITIES IS A GREAT WAY TO BEAT A LOOSE LABOR MARKET STRIKE A BALANCE BETWEEN NOT TAKING YOURSELF TOO SERIOUSLY AND MAINTAINING THE RESPECT OF YOUR EMPLOYEES IMPATIENCE IN ASIA IS THE WORST OF SINS ONE OF MY FIRST LOCAL HIRES QUIT AFTER I LOST MY COOL DISCRETION AND PATIENCE ARE THE BETTER PART OF MAINTAINING A WORKING OFFICE MS. LLOYD IS MANAGING DIRECTOR OF D. D. TRADERS INCORPORATED ECONOMIC REFORMS AND HUGE RETURNS WERE THE BUZZWORDS IN THE MARKET FOR DEVELOPING NATION BONDS LAST YEAR BUT THIS YEAR INVESTORS WILL BE LEARNING MORE ABOUT POLITICAL RISK THE REBEL UPRISING IN CHIAPAS IN SOUTHERN MEXICO HAS UNNERVED INVESTORS DRAGGING DOWN PRICES FOR DEVELOPING NATION BONDS IN REALMS FROM LATIN AMERICA TO AFRICA QUOTE MEXICO HAS TO WIN THE PRIZE FOR THE BEST KEPT SECRET OF THE YEAR QUOTE REMARKS LISA HESS A PORTFOLIO MANAGER AT LOEWS CORPORATION THE DIVERSIFIED HOLDING COMPANY THE DAY AFTER NAFTA STARTS THEY REVEAL THAT THEY HAVE A LITTLE REVOLUTION BREWING NAFTA THE NORTH AMERICAN FREE TRADE AGREEMENT WENT INTO EFFECT JANUARY FIRST THE DAY OF THE CHIAPAS UPRISING THE UPRISING HAS INVESTORS WONDERING WHAT POLITICAL LAND MINES MIGHT BE AWAITING INVESTORS ELSEWHERE SOME OF THESE INVESTORS HAVE RESPONDED BY SELLING THEIR HOLDINGS POLITICAL WORRIES IN VENEZUELA AND NIGERIA TWO OTHER POPULAR NATIONS FOR BOND INVESTORS HAVE SHARPLY PUSHED DOWN BOND PRICES THERE MEXICO'S PAR BRADY BOND IS STILL DOWN OVER A POINT FROM THE END OF NINETEEN NINETY THREE AT EIGHTY TWO POINT ONE THREE ACCORDING TO J. P. MORGAN SECURITIES INCORPORATED BRADY BONDS ARE SECURITIES ISSUED BY GOVERNMENTS AS PART OF A FOREIGN DEBT RESTRUCTURING PROGRAM DESIGNED BY FORMER U. S. TREASURY SECRETARY NICHOLAS BRADY THE PAR BONDS GET THEIR NAME FROM THE FACT THAT THEY ARE MADE FROM OLD FOREIGN DEBT THAT HAS BEEN CONVERTED AT FACE VALUE INTO THE NEW BONDS THE PRICE OF NIGERIA'S PAR BRADY BOND HAS DROPPED NEARLY FIVE POINTS IN THE PAST TWO WEEKS OR NEARLY FIFTY DOLLARS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO FIFTY NINE POINT SEVEN FIVE ACCORDING TO J. P. MORGAN SECURITIES THE REASON BECAUSE OF GROWING POLITICAL INSTABILITY INVESTORS ARE CONCERNED OVER THE COUNTRY'S WILLINGESS TO SERVICE ITS FOREIGN DEBT VENEZUELA'S PAR BONDS HAVE DROPPED NEARLY FIVE POINTS AS WELL TO SEVENTY POINT FIVE OH OVER THE SAME PERIOD THANKS TO THE SUSPENSION OF THE COUNTRY'S VALUE ADDED TAX AND THE INTRODUCTION OF TEMPORARY PRICE CONTROLS INVESTORS ARE WORRIED ABOUT THE GOVERNMENT'S ABILITY TO PAY ITS DEBT SERVICE WITHOUT THE TAX VENEZUELA'S PRESIDENT ELECT RAFAEL CALDERA ALSO REAFFIRMED HIS CAMPAIGN PROMISE TO REMOVE THE VALUEADDED TAX ADDING TO THE BAD NEWS WAS A CRISIS AT ONE OF VENEZUELA'S BIGGEST BANKS BANCO LATINO WHOSE ASSETS WERE FROZEN BY THE CENTRAL BANK AN EAGERLY ANTICIPATED ONE BILLION DOLLAR GLOBAL NOTE OFFERING FROM MEXICO'S BANCO NACIONAL DE COMERCIO EXTERIOR WAS HURT BY THE POLITICAL WORRIES LAST WEEK A GLOBAL SECURITY IS ONE THAT IS OFFERED SIMULTANEOUSLY IN ALL THE WORLD'S MAJOR MARKETS AND IS INTENDED TO BE EASILY TRADED IN ALL THOSE MARKETS UNLIKE A SIMILAR GLOBAL NOTE OFFERING FROM ARGENTINA IN EARLY DECEMBER THE BANCO NACIONAL OFFERING RECEIVED A LUKEWARM RECEPTION FROM INVESTORS THE YIELD SPREAD OF THE TEN YEAR NOTES OVER COMPARABLE U. S. TREASURY DEBT HAD TO BE WIDENED IN ORDER TO ATTRACT DEMAND AND SHORTLY AFTER THE NOTES WERE PRICED ON FRIDAY THEIR PRICE DROPPED ABOUT ONE QUARTER POINT OR ABOUT TWO DOLLARS AND FIFTY CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY NINE POINT TWO FIVE THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE ROSE TO SEVEN POINT THREE SIX PERCENT FROM SEVEN POINT THREE TWO PERCENT SHARP PRICE MOVES AREN'T NEW TO DEVELOPING NATION BONDS BUT AFTER A LONG RUN UP IT APPEARS THAT INVESTORS OUGHT TO BE WORRYING MORE ABOUT THEM SAYS LOEWS'S MS. HESS SHE SAYS THAT UNTIL NOW MANY OF THESE DEVELOPING NATION BOND MARKETS HAVE GONE ONLY IN ONE DIRECTION ANY REASONABLE INVESTORS WOULD SEE THAT IS A WARNING SIGN DESPITE THE UNPREDICTABILITY OF POLITICAL RISK A NUMBER OF MONEY MANAGERS WITH BIG BETS ON DEVELOPING NATION BONDS SAY THEY AREN'T LOSING ANY SLEEP OVER THE SHAKY POLITICAL CLIMATE IN PLACES LIKE VENEZUELA OR NIGERIA ONE OF THE SOUNDEST SLEEPERS IS PROBABLY NIKOS PAPPAYLIOU A PORTFOLIO MANAGER AT G. T. CAPITAL MANAGEMENT OUR BELIEF IS THAT DISPARATE POLITICAL IDEOLOGIES WHETHER IT'S MEXICO OR CALDERA IN VENEZUELA OR PRESIDENT CARLOS MENEM IN ARGENTINA REALLY DON'T MATTER MUCH TO INVESTORS HE SAYS THE TREND TO GLOBALIZATION WILL MARGINALIZE MUCH OF THESE POLITICAL IDEOLOGIES HE CLAIMS QUOTE WHEN DEVELOPING NATIONS WEIGH THE BENEFITS OF BEING REINTEGRATED INTO THE WORLD ECONOMY PARTIES ON THE RIGHT AND THE LEFT OF THE POLITICAL SPECTRUM WILL BE CONFRONTED WITH ONE CHOICE TO CONTINUE ECONOMIC REFORMS QUOTE HE EXPLAINS MS. HESS OF LOEWS DOESN'T AGREE YOU CAN BE CORRECT ABOUT BROAD ECONOMIC TRENDS BUT BE WRONG ON SPECIFIC SECURITIES PRICES IN THE SHORT TERM SHE SAYS THERE IS A TREMENDOUS AMOUNT OF FOCUS THESE DAYS ON MISSED OPPORTUNITIES AND INSUFFICIENT RETURNS AND NOT ENOUGH FOCUS ON POLITICAL AND OTHER RISKS MS. HESS WAS QUOTED LATE LAST YEAR IN THE TRADE PUBLICATION GRANT'S INTEREST RATE OBSERVER ON THE EXPERIENCE OF A COLLEAGUE AT LOEWS WITH MEXICAN PAR BONDS WE HAD A SAD EXPERIENCE IN MEXICAN PAR BONDS THE MOST LIQUID PART OF THE EMERGING MARKETS DEBT MARKET IN FIVE TRADING DAYS THEY WENT FROM A DOLLAR PRICE OF EIGHTY THREE TO A DOLLAR PRICE OF SEVENTY FIVE AND THREE MARKET MAKERS BASICALLY STOPPED ANSWERING THEIR TELEPHONES THE PRICE DROP WAS A REACTION TO WORRIES THAT NAFTA MIGHT NOT GET APPROVED SHE SAYS THIS YEAR COULD BE PARTICULARLY WILD FOR INVESTORS IN LATIN AMERICAN BONDS BECAUSE SO MANY OF THESE NATIONS FACE A CHANGE IN LEADERSHIP OR NEW ELECTIONS MEXICO ARGENTINA AND BRAZIL WILL HAVE ELECTIONS THIS YEAR POINTS OUT CAROL ANN HOFFMANN AN EMERGING MARKETS ANALYST AT J. P. MORGAN VENEZUELA AND CHILE JUST HAD ELECTIONS WHAT'S MORE THE ARGENTINE GOVERNMENT IS CLOSELY WATCHING THE EVENTS IN CHIAPAS BECAUSE OF WORRIES THAT SOMETHING SIMILAR COULD HAPPEN THERE AS WELL SAYS MS. HOFFMANN ARGENTINA PUT SECURITY SERVICES ON ALERT TEN DAYS AGO AND THOUGH FEW ANALYSTS AND MONEY MANAGERS WILL SAY SO ON THE RECORD MANY OF THEM WORRY ABOUT WHAT WOULD HAPPEN TO INVESTMENTS IF MEXICO'S RULING INSTITUTIONAL REVOLUTIONARY PARTY DOESN'T WIN THE COMING ELECTION AND LOSES POWER FOR THE FIRST TIME IN MORE THAN SIXTY YEARS THE RE ELECTION OF THE P. R. I. THE PARTY'S SPANISH ACRONYM IS TAKEN ALMOST FOR GRANTED GIVEN THE PARTY'S HISTORY OF WINNING ELECTIONS THROUGH ALLEGED VOTING FRAUD BUT OTHERS POINT OUT THAT MORE SO THAN IN PAST ELECTIONS THIS YEAR'S ELECTIONS IN MEXICO WILL BE CLOSELY WATCHED TO SEE HOW SERIOUS THAT NATION'S LEADERS ARE ABOUT POLITICAL REFORMS MR. PAPPAYLIOU OF G. T. CAPITAL CALLS THE DIPS AND JUMPS IN DEVELOPING NATION BOND PRICES IN REACTION TO POLITICAL EVENTS HICCUPS AND SAY THEY ARE WONDERFUL BUYING OPPORTUNITIES THE DEATH OF CHINESE LEADER DENG XIAOPING WOULD BE ONE POSSIBLE BUYING OPPORTUNITY HE SAYS IN VENEZUELA SAYS MR. PAPPAYLIOU INVESTORS QUOTE ARE SIFTING THROUGH THE RHETORIC AND REALIZING THAT A LOT HASN'T CHANGED QUOTE WITH THE ELECTION OF MR. CALDERA AS PRESIDENT EVEN THOUGH HE IS A POPULIST AND CONTINUES TO RAIL AGAINST THE COUNTRY'S VALUE ADDED TAX HE'S SURROUNDING HIMSELF WITH A PRUDENT MODERN CABINET SAYS MR. PAPPAYLIOU ROBERT CITRONE A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS OF BOSTON AGREES IN VENEZUELA DURING HIS ELECTION CAMPAIGN MR. CALDERA WAS BEING MORE POPULIST THAN HE REALLY IS SAYS MR. CITRONE WHEN HE TAKES POWER NEXT MONTH HE WILL TAKE A MORE RATIONAL POSITION INSISTS MR. CITRONE HIS ADVISERS SAY THE VAT WILL NOT BE REMOVED NIGERIA'S CONTINUED POLITICAL PROBLEMS AREN'T A CONCERN SAYS MR. PAPPAYLIOU IT'S JUST QUOTE THE CONTINUATION OF A TREND OF AUTOCRATIC RULE QUOTE AND QUOTE IT DOESN'T AFFECT NIGERIA'S QUOTE CAPACITY AND ABILITY TO PAY ITS DEBTS QUOTE HE SAYS MR. PAPPAYLIOU IS CONVINCED THAT NO MATTER WHAT THE POLITICIANS SAY WHEN IT COMES TO MAKING DECISIONS IN MANY OF THESE NATIONS THEY WILL COME DOWN ON THE SIDE OF FREE MARKETS FOR DEVELOPING NATIONS THERE IS NO INCENTIVE TO DEFAULT AND BE EXCLUDED FROM THE WORLD'S CAPITAL MARKETS BUT INVESTORS WHO BECOME ENTHUSIASTIC ABOUT DEVELOPING NATIONS ESPECIALLY IN LATIN AMERICA OUGHT TO REMEMBER THAT THERE IS A LONG AND COLORFUL HISTORY OF POLITICS GETTING IN THE WAY OF PAYING OFF DEBTS THAT'S EXACTLY WHAT HAPPENED IN PERU IN THE MID NINETEEN EIGHTIES WHEN IT CHOSE TO LIMIT ITS INTEREST PAYMENTS ON FOREIGN DEBT AND CUT ITSELF OFF FROM FOREIGN LOANS JUST WHEN IT NEEDED THEM THE MOST ACCORDING TO A STUDY BY SALOMON BROTHERS INCORPORATED THE ONLY REGION TO BE A MAJOR DEFAULTER IN ALL FOUR OF THE MAJOR INTERNATIONAL DEBT CRISES SINCE THE ONE THOUSAND EIGHT HUNDRED TWENTIES WAS LATIN AMERICA U. S. TREASURY NOTES AND BONDS ENDED THE WEEK ON A QUIET NOTE POSTING SMALL DECLINES FRIDAY IN WHAT TRADERS ARE CALLING A DIRECTIONLESS MARKET THE PRICE OF THE BENCHMARK THIRTY YEAR TREASURY BOND DROPPED LESS THAN ONE QUARTER POINT OR LESS THAN TWO DOLLARS AND FIFTY CENTS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO NINETY NINE AND SEVENTEEN THIRTY SECONDS ITS YIELD WHICH MOVES INVERSELY TO THE PRICE ROSE TO SIX POINT TWO EIGHT PERCENT FROM SIX POINT TWO SIX PERCENT ON THURSDAY THE TREASURY DEPARTMENT WILL BE SELLING SEVENTEEN BILLION DOLLARS OF TWO YEAR NOTES TOMORROW AND TWELVE BILLION DOLLARS IN FIVE YEAR NOTES WEDNESDAY IN WHEN ISSUED TRADING FRIDAY THE TWO YEAR NOTE YIELDED FOUR POINT ONE ONE PERCENT UP FROM FOUR POINT OH EIGHT PERCENT ON THURSDAY WHILE THE WHEN ISSUED FIVE YEAR NOTE FINISHED THE WEEK AT FIVE POINT OH FIVE PERCENT UP FROM FIVE POINT OH THREE PERCENT AS LOS ANGELES RESIDENTS GO ABOUT REBUILDING THEIR LIVES AND HOMES AFTER LAST WEEK'S DEVASTATING EARTHQUAKE THE PRICES OF THE INDUSTRIAL COMMODITIES THEY USE ARE LIKELY TO GET A BOOST THE MOST DIRECT BENEFICIARIES OF A REBUILDING BOOM IN SOUTHERN CALIFORNIA WILL BE COPPER AND LUMBER BOTH BASIC RAW MATERIALS OF THE U. S. HOUSING INDUSTRY IN BOTH CASES ANALYSTS AND ECONOMISTS SAY THE QUAKE WILL STRENGTHEN ALREADY POSITIVE MARKET FUNDAMENTALS AND LIKELY PUSH PRICES HIGHER QUOTE I'M FAIRLY CONFIDENT WE'LL SEE COPPER PRICES CLIMB TO AS MUCH AS NINETY THREE CENTS A POUND BY THE END OF THE QUARTER QUOTE FROM FRIDAY'S SETTLE PRICE OF EIGHTY FIVE POINT SIX FIVE CENTS A POUND FOR THE ACTIVELY TRADED MARCH FUTURES CONTRACT SAYS BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INCORPORATED LUMBER OVER THE NEXT FEW MONTHS COULD CHALLENGE FOUR HUNDRED FORTY DOLLARS PER THOUSAND BOARD FEET UP FROM FRIDAY'S SETTLE PRICE OF FOUR HUNDRED SEVEN DOLLARS AND EIGHTY CENTS ANALYSTS SAY THE MARKET IMPACT OF THE QUAKE SOME ECONOMISTS ADD COULD EVEN INDIRECTLY INFLUENCE BOND PRICES COPPER AND LUMBER ARE AMONG THE TWENTY ONE FUTURES CONTRACTS TRACKED BY THE KNIGHT RIDDER COMMODITY RESEARCH BUREAU INDEX ECONOMISTS WATCH THIS INFLUENTIAL INDEX FOR HINTS OF CHANGES IN THE ECONOMIC CYCLE BOND TRADERS IN PARTICULAR PAY CLOSE ATTENTION TO THE KR C. R. B. INDEX BECAUSE OF ITS WELL DOCUMENTED INVERSE CORRELATION WITH BOND PRICES STRONG SURGES IN LUMBER AND COPPER PRICES OVER THE NEXT FEW MONTHS WOULD HELP TO PUSH THE KR C. R. B. INDEX HIGHER AS DID GRAIN PRICE GAINS RELATED TO THE FLOODING OF THE MIDWEST LAST FALL WHICH POTENTIALLY COULD EXERT DOWNWARD PRESSURE ON BOND PRICES THE AFTERMATH OF THE QUAKE ALSO COULD LEND STRENGTH TO SUCH INDUSTRIAL METALS AS ALUMINUM WHICH IS USED TO MAKE ALUMINUM SIDING AND WINDOW FRAMES FOR NEW HOMES ALUMINUM FUTURES CONTRACTS ARE TRADED ON THE LONDON METALS EXCHANGE OBVIOUSLY THE REBUILDING OF THE L. A. INFRASTRUCTURE WILL HAVE A POSITIVE IMPACT ON PRICES SAYS FRED DEMLER METALS ECONOMIST FOR E. D. AND F. MAN IT WILL ADD TO THE ALREADY POSITIVE SUPPLY DEMAND BALANCE IN BOTH COPPER AND ALUMINUM THE QUAKE'S EFFECT WAS VISIBLE IN THE LUMBER AND COPPER MARKETS IN THE DAYS THAT FOLLOWED THE CALIFORNIA CATASTROPHE ON TUESDAY THE DAY AFTER THE QUAKE COPPER FOR MARCH DELIVERY LEAPED ONE POINT SEVEN CENTS TO SETTLE AT EIGHTY SIX POINT SEVEN CENTS A POUND ON WEDNESDAY MARCH LUMBER FOLLOWED SUIT RISING THE DAILY PRICE MOVEMENT LIMIT OF TEN DOLLARS TO FOUR HUNDRED TWO DOLLARS AND FORTY CENTS PER THOUSAND BOARD FEET IF YOU COULD DRAW A PARALLEL IT WOULD BE TO THE FLOODING OF THE MIDWEST WHERE MASSIVE REBUILDING WAS NECESSARY SAYS JOHN GROSS OF J. E. GROSS AND ASSOCIATES A METALS CONSULTING COMPANY THAT HAD AN IMPACT ON LUMBER AND COPPER PRICES TO BE SURE OTHER MARKET FACTORS ARE INFLUENCING THE PRICES OF BOTH THESE COMMODITIES THE LUMBER MARKET IS BEING DRIVEN BY HOUSING STARTS WHICH HAVE CONTINUED TO BE STRONG SAYS BUD MERRILL LUMBER ANALYST FOR SMITH BARNEY SHEARSON ON THURSDAY FOR EXAMPLE LUMBER PRICES AGAIN SURGED THE TEN DOLLAR DAILY LIMIT AFTER THE COMMERCE DEPARTMENT REPORTED THAT U. S. HOUSING STARTS ROSE TO AN ANNUAL RATE OF ONE MILLION FIVE HUNDRED FORTY THOUSAND UNITS IN DECEMBER FROM ONE MILLION FOUR HUNDRED FIFTY THOUSAND UNITS IN NOVEMBER PUSHING HOME BUILDING TO ITS HIGHEST LEVEL IN FOUR YEARS COPPER PRICES ESPECIALLY IN THE U. S. ARE BENEFITING FROM LOWER PRODUCTION AND HIGHER CONSUMPTION WORLD WIDE MINE PRODUCTION OF COPPER FELL FIVE PERCENT IN THE LAST HALF OF NINETEEN NINETY THREE TO THREE POINT SEVEN MILLION TONS FROM THREE POINT NINE MILLION TONS A YEAR EARLIER ACCORDING TO THE AMERICAN BUREAU OF METALS STATISTICS MEANWHILE U. S. CONSUMPTION OF COPPER IN THE FOURTH QUARTER OF NINETEEN NINETY THREE ROSE NINE PERCENT TO FIVE HUNDRED NINETY THOUSAND TONS FROM FIVE HUNDRED FORTY THOUSAND TONS A YEAR EARLIER ON FRIDAY THE PRICES OF COPPER AND LUMBER RETREATED SLIGHTLY COPPER'S PRICE FELL FRIDAY IN WHAT ANALYSTS SAID WAS A TECHNICAL CORRECTION AFTER TWO WEEKS OF GAINS AND LUMBER'S PRICE SAGGED SIMILARLY AFTER THE TWO CONSECUTIVE DAYS OF RISING BY THE PERMISSIBLE LIMIT YET THESE MOVEMENTS APPEAR TO BE ABERRATIONS IN UPWARD TRENDS IN THE CASE OF COPPER SOUTHERN CALIFORNIA BUILDERS WILL NEED TO BUY BIG QUANTITIES OF PLUMBING TUBE AND ELECTRICAL WIRE TO REBUILD DEMOLISHED HOMES KEVIN NORRISH RESEARCH MANAGER FOR COPPER FABRICATING AT CRU INTERNATIONAL LIMITED A BRITISH METALS RESEARCH AND CONSULTING COMPANY SAYS U. S. CONSUMPTION OF COPPER WHICH WAS TWO MILLION THREE HUNDRED SEVENTY THOUSAND TONS IN NINETEEN NINETY THREE MAY RISE THIS YEAR AS A RESULT OF THE EARTHQUAKE MR. GROSS SAYS SHIPMENTS OF COPPER ROD IN NINETEEN NINETY THREE WHICH ACCOUNT FOR ABOUT SEVENTY SIX PERCENT OF CONSUMPTION OF REFINED COPPER MATCHED OR EXCEEDED THE ONE POINT SEVEN EIGHT MILLION TON RECORD OF NINETEEN EIGHTY NINE THIS YEAR HE SAYS SHIPMENTS MAY BE HIGHER STILL IN PART BECAUSE OF EARTHQUAKE RELATED REBUILDING QUOTE WE COME INTO NINETEEN NINETY FOUR WITH VERY STRONG ORDER BOOK DEMAND FOR COPPER CONSISTENT WITH THE GROWTH OF THE U. S. ECONOMY QUOTE MR. GROSS SAYS IN LUMBER THE REBUILDING IN CALIFORNIA COULD POTENTIALLY RESULT IN SUPPLY SHORTAGES OF SOME WOOD PRODUCTS ON THE WEST COAST SAYS NICK KENT OF THE NORTH AMERICAN LUMBERMEN'S ASSOCIATION WE MIGHT FIND SPECIALTY PRODUCTS IN HIGH DEMAND HE SAYS TAKE THE FREEWAY REPAIR THEY MIGHT USE TIMBER TO SHORE UP HIGHWAYS OR AS SHORING SUPPORT FOR NEW CONSTRUCTION THAT CREATES A LARGE APPETITE FOR A PRODUCT THAT MIGHT NOT BE READILY AVAILABLE MICHAEL R. GAULKE WAS ELECTED A DIRECTOR OF THIS CONSULTING FIRM EXPANDING BOARD MEMBERSHIP TO SEVEN MR. GAULKE BECAME PRESIDENT OF THE COMPANY LAST MARCH AND PRIOR TO THAT WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MARATHON OIL COMPANY ANNOUNCED A NATURAL GAS DISCOVERY IN EGYPT'S NORTHERN NILE DELTA AREA ABOUT ONE HUNDRED FIVE MILES NORTH OF CAIRO MARATHON OIL IS PART OF U. S. X. MARATHON GROUP THE EL QAR'A NORTHWEST NUMBER ONE WELL TESTED AT COMBINED DAILY FLOW RATES OF THIRTY SIX POINT TWO MILLION CUBIC FEET OF NATURAL GAS AND TWO HUNDRED FIFTEEN BARRELS OF CONDENSATE FROM THREE ZONES THE TESTS WERE CONDUCTED AT MEASURED DEPTHS OF ELEVEN THOUSAND TWO HUNDRED FIFTY FOUR TO ELEVEN THOUSAND TWO HUNDRED SEVENTY FIVE FEET ELEVEN THOUSAND EIGHT HUNDRED TWELVE TO ELEVEN THOUSAND EIGHT HUNDRED THIRTY FIVE FEET AND ELEVEN THOUSAND NINE HUNDRED TWENTY SIX TO ELEVEN THOUSAND NINE HUNDRED FORTY THREE FEET ON CHOKE SIZES VARYING FROM THREE QUARTERS TO ONE AND ONE HALF INCHES PARALLEL PETROLEUM CORPORATION SAID ITS FOURTH CANYON REEF DISCOVERY WELL THE PHILLIPS NUMBER ONE FLOWED AT A RATE OF FIVE HUNDRED EIGHTY BARRELS OF OIL AND ONE POINT FOUR NINE MILLION CUBIC FEET OF NATURAL GAS DAILY FROM A DEPTH OF ABOUT NINE THOUSAND FEET THE OIL AND NATURAL GAS COMPANY SAID IT EXPECTS THE WELL TO PRODUCE ONE HUNDRED THIRTY BARRELS OF OIL AND ABOUT FOUR HUNDRED SIXTY THOUSAND CUBIC FEET OF NATURAL GAS A DAY PARALLEL OWNS A SIXTY PERCENT WORKING INTEREST IN THE WELL WHICH IS IN THE HORSESHOE ATOLL AREA OF HOWARD COUNTY TEXAS FIVE CLOSELY HELD COMPANIES OWN THE REMAINING FORTY PERCENT INTEREST TILL THEY STUDY THE POLLS E. B. DE VITO AT THE SUPERMART CHECKOUT STAND DOUGLAS C. MACLELLAN WAS NAMED A DIRECTOR OF THIS MULTIMEDIA SOFTWARE CONCERN EXPANDING BOARD MEMBERSHIP TO SIX MR. MACLELLAN THIRTY SEVEN YEARS OLD IS A PRINCIPAL OF MAROON BELLS CAPITAL PARTNERS A MERCHANT BANKING FIRM DETROIT EDISON COMPANY SAID IT WILL REDUCE ELECTRIC RATES FOR ITS NEARLY TWO MILLION CUSTOMERS BY SEVENTY EIGHT MILLION DOLLARS THE SECOND REDUCTION IN THIRTEEN MONTHS THE REDUCTION IS IN LINE WITH A MICHIGAN PUBLIC SERVICE COMMISSION RATE ORDER ISSUED FRIDAY THE RATE REDUCTION WAS SCHEDULED TO TAKE EFFECT SATURDAY MORE THAN A YEAR AGO THE DETROIT BASED UTILITY FILED FOR A ONE HUNDRED THIRTEEN MILLION DOLLAR RATE INCREASE FOR NINETEEN NINETY FOUR TO REFLECT INCREASES IN FEDERAL INCOME TAX RATES CERTAIN REQUIRED ACCOUNTING CHANGES AND OTHER ITEMS STATE REGULATORS DENIED THAT REQUEST IN OCTOBER SONY CORPORATION SAID IT WILL REORGANIZE ITS CORPORATE STRUCTURE AIMING TO DECENTRALIZE ITS OPERATIONS AND REDUCE LAYERS OF MANAGEMENT SONY OFFICIALS SAID THE MOVE WON'T LEAD TO EMPLOYMENT CUTS OR FACTORY CLOSINGS THE CHANGES ARE LIMITED TO PARENT COMPANY OPERATIONS AND WON'T AFFECT OVERSEAS UNITS SUCH AS SONY CORPORATION OF AMERICA WHICH HEADS THE COMPANY'S MOVIE STUDIO AND MUSIC OPERATIONS IN THE U. S. THE JAPANESE CONSUMER ELECTRONICS CONCERN SAID IT WILL REGROUP ITS VARIOUS PRODUCT AND MARKETING GROUPS INTO THREE QUOTE GROUP QUOTE COMPANIES AND FIVE QUOTE DIVISION QUOTE COMPANIES THE NEW COMPANIES WILL BE RESPONSIBLE FOR SUCH AREAS AS CONSUMER AUDIOVISUAL PRODUCTS COMPONENTS RECORDING MEDIA AND BATTERIES BROADCAST PRODUCTS SYSTEMS BUSINESS PERSONAL INFORMATION AND COMMUNICATIONS MOBILE ELECTRONICS AND SEMICONDUCTORS THE COMPANY SAID THE NEW STRUCTURE WOULD IMPROVE COORDINATION OF MARKETING AND MANUFACTURING EFFORTS AND ALLOW EACH OF THE NEW COMPANIES GREATER AUTONOMY J. P. REALTY INCORPORATED SAID IT RECEIVED NEARLY TWO HUNDRED MILLION DOLLARS IN PROCEEDS FROM ITS INITIAL PUBLIC OFFERING THE STOCK OF THIS REAL ESTATE INVESTMENT TRUST WHICH OWNS AND DEVELOPS COMMERCIAL PROPERTIES BEGAN TRADING JANUARY FOURTEENTH ON THE NEW YORK STOCK EXCHANGE IMMUNEX CORPORATION ENDED A FIVE MONTH SEARCH FOR A NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER BY NAMING AN EXECUTIVE FROM AMERICAN CYANAMID COMPANY WHICH ACQUIRED A CONTROLLING INTEREST IN IMMUNEX ABOUT A YEAR AGO EDWARD V. FRITZKY FORTY THREE YEARS OLD SUCCEEDS STEVEN GILLIS THE BIOPHARMACEUTICAL FIRM'S ACTING CHIEF EXECUTIVE SINCE SEPTEMBER MR. FRITZKY WAS FORMERLY PRESIDENT OF LEDERLE LABORATORIES A UNIT OF AMERICAN CYANAMID WAYNE N. J. BEFORE JOINING LEDERLE IN NINETEEN EIGHTY NINE HE WORKED AT SEARLE PHARMACEUTICALS INCORPORATED A UNIT OF MONSANTO COMPANY FOR SIXTEEN YEARS AS PART OF CYANAMID'S INVESTMENT IN IMMUNEX STEPHEN A. DUZAN RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE AND MR. GILLIS STEPPED IN TEMPORARILY IN SEPTEMBER AMID THE SEARCH FOR A PERMANENT SUCCESSOR MR. GILLIS AN IMMUNEX FOUNDER WILL RESUME HIS POSITION AS IMMUNEX EXECUTIVE VICE PRESIDENT A COMPANY SPOKESWOMAN SAID MR. FRITZKY HAD NO IMMEDIATE PLANS TO ALTER IMMUNEX'S STRATEGIC FOCUS OR OPERATIONS CORRPRO COMPANIES MEDINA OHIO MICHAEL R. TIGHE FORTY THREE YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT OF THIS PROVIDER OF CORROSION CONTROL ENGINEERING SERVICES SYSTEMS AND EQUIPMENT MR. TIGHE WAS PRESIDENT OF ELGARD CORPORATION CHARDON OHIO A QUOTE MAJOR COMPETITOR QUOTE IN THE CORROSION CONTROL MARKET FOR BRIDGES AND CONCRETE STRUCTURES CORRPRO SAID MORE THAN FIVE HUNDRED THIRTY SIX THOUSAND FINNS WERE OUT OF WORK LAST MONTH A POST WORLD WAR TWO JOBLESS HIGH OF TWENTY ONE POINT EIGHT PERCENT THE LABOR MINISTRY SAID IN NOVEMBER TWENTY POINT THREE PERCENT OF THE WORK FORCE WAS UNEMPLOYED IN DECEMBER NINETEEN NINETY TWO SEVENTEEN POINT NINE PERCENT OF THE FINNISH WORK FORCE WAS JOBLESS THE MINISTRY SAID UNEMPLOYMENT FIGURES FROM THE LABOR MINISTRY AREN'T CONSIDERED FINLAND'S OFFICIAL UNEMPLOYMENT RATE OFFICIAL FIGURES FOR DECEMBER USED IN INTERNATIONAL COMPARISONS WILL BE RELEASED IN FEBRUARY BY THE CENTRAL STATISTICS OFFICE FINLAND'S OFFICIAL UNEMPLOYMENT RATE WAS EIGHTEEN POINT FOUR PERCENT IN NOVEMBER CANADA'S CONSUMER PRICE INDEX ROSE A SEASONALLY ADJUSTED ZERO POINT TWO PERCENT IN DECEMBER FROM NOVEMBER SAID STATISTICS CANADA A GOVERNMENT AGENCY THE DECEMBER RISE FOLLOWED INCREASES OF ZERO POINT TWO PERCENT IN NOVEMBER AND ZERO POINT ONE PERCENT IN OCTOBER GORDON M. GRAHAM SENIOR VICE PRESIDENT WAS NAMED TO THE SEVEN MEMBER BOARD MR. GRAHAM FIFTY NINE YEARS OLD SUCCEEDS THE LATE STANLEY S. FINE BELL DISTRIBUTES AND MAKES PRODUCTS FOR THE ELECTRONICS COMPUTER BUILDING AND OTHER MARKETS THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CLARIDGE HOTEL AND CASINO CORPORATION EIGHTY FIVE MILLION DOLLARS OF FIRST MORTGAGE NOTES DUE FEBRUARY FIRST TWO THOUSAND TWO PRICED AT PAR TO YIELD ELEVEN POINT SEVEN FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR FOUR YEARS ARE RATED SINGLE B. TWO BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE B. BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION FEDERAL NATIONAL MORTGAGE ASSOCIATION TWO HUNDRED MILLION DOLLARS OF MEDIUM TERM NOTES DUE JANUARY TWENTY EIGHTH TWO THOUSAND FOUR PRICED AT PAR TO YIELD SIX POINT TWO FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF FIFTY SIX BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY AND COMPANY NORWEST FINANCIAL INCORPORATED ONE HUNDRED FIFTY MILLION DOLLARS OF NOTES DUE FEBRUARY FIRST TWO THOUSAND FOUR PRICED AS SIXES AT NINETY NINE POINT TWO FIVE TO YIELD SIX POINT ONE OH ONE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FORTY ONE BASIS POINTS ABOVE TREASURYS RATED DOUBLE A THREE BY MOODY'S AND DOUBLE A MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY NORWEST FINANCIAL IS A UNIT OF NORWEST CORPORATION CELADON GROUP INCORPORATED INITIAL PUBLIC OFFERING OF TWO POINT ONE MILLION COMMON SHARES PRICED AT FOURTEEN DOLLARS AND FIFTY CENTS EACH THROUGH FURMAN SELZ INCORPORATED AND C. J. LAWRENCE SLASH DEUTSCHE BANK SECURITIES CORPORATION ACCORDING TO THE COMPANY FEDERAL HOME LOAN MORTGAGE CORPORATION ONE POINT TWO OH BILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY AND COMPANY THE OFFERING SERIES GOLD ONE THOUSAND SIX HUNDRED EIGHTY FOUR IS BACKED BY FREDDIE MAC GOLD THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT ONE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS FEDERAL HOME LOAN MORTGAGE CORPORATION THREE HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY MORGAN STANLEY AND COMPANY THE OFFERING SERIES ONE THOUSAND SIX HUNDRED EIGHTY FIVE IS BACKED BY THE AGENCY'S THIRTY YEAR RELOCATION LOANS SIX PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SIX POINT SIX FIVE PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION FIVE HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY PRUDENTIAL SECURITIES INCORPORATED THE OFFERING SERIES NINETEEN NINETY FOUR TO TWENTY SEVEN IS BACKED BY FANNIE MAE'S THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT ONE FIVE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY NINE MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION ONE HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INCORPORATED THE OFFERING SERIES NINETEEN NINETY FOUR TO TWENTY FOUR IS BACKED BY FIFTY MILLION DOLLARS OF PRINCIPAL ONLY STRIPS FROM TRUST TWO HUNDRED FIFTY TWO AND FIFTY MILLION DOLLARS OF THIRTY YEAR SEVEN POINT FIVE PERCENT POS FROM TRUST TWO HUNDRED FIFTY FOUR ARACRUZ CELLULOSA S. A. BRAZIL ONE HUNDRED TWENTY MILLION DOLLARS OF TEN POINT THREE SEVEN FIVE PERCENT EUROBONDS DUE JANUARY THIRTY FIRST TWO THOUSAND TWO AT ISSUE AND FIXED REOFFER PRICE PAR VIA CHASE INVESTMENT BANK LIMITED BONDS PRICED TO YIELD TEN POINT THREE SEVEN FIVE PERCENT A MARGIN OF FOUR HUNDRED NINETY BASIS POINTS OVER EIGHT YEAR U. S. TREASURY YIELD CURVE CALLABLE AT END OF THIRD YEAR AT NINETY FOUR POINT FIVE TWO SEVEN TO YIELD A MARGIN OF FOUR HUNDRED FORTY BASIS POINTS OVER THREE YEAR TREASURY AT SAME TIME PUT OPTION EXERCISABLE AT NINETY THREE POINT SEVEN ONE TO YIELD A MARGIN OF FOUR HUNDRED FIFTEEN BASIS POINTS OVER THREE YEAR TREASURY FEES ZERO POINT EIGHT FIVE INTEREST PAYABLE SEMIANNUALLY BANCO BOZANO SIMONSEN BRAZIL SIXTY MILLION DOLLARS OF EIGHT POINT FIVE PERCENT EUROBONDS DUE JANUARY THIRTY FIRST NINETEEN NINETY SEVEN AT FIXED REOFFER PRICE NINETY NINE POINT EIGHT FIVE SEVEN TO YIELD FOUR HUNDRED TWENTY BASIS POINTS OVER FOUR POINT THREE SEVEN FIVE PERCENT THREE YEAR U. S. TREASURY BOND VIA MERRILL LYNCH INTERNATIONAL LIMITED FEES ONE INTEREST PAYABLE SEMIANNUALLY BANCO NACIONAL DE COMERCIO EXTERIOR S. N. C. MEXICAN AGENCY ONE BILLION DOLLARS OF GLOBAL BONDS DUE FEBRUARY SECOND TWO THOUSAND FOUR WITH COUPON SEVEN POINT TWO FIVE PERCENT AND ISSUE AND FIXED REOFFER PRICE NINETY NINE POINT FIVE ONE SIX VIA JOINT LEAD UNDERWRITERS GOLDMAN SACHS AND MERRILL LYNCH BONDS PRICED TO YIELD SEVEN POINT THREE TWO FOUR PERCENT A MARGIN OF ONE HUNDRED SIXTY THREE BASIS POINTS OVER THE FIVE POINT SEVEN FIVE PERCENT U. S. TREASURY OF AUGUST TWO THOUSAND THREE THE BORROWER'S SENIOR DEBT OUTSTANDING RATED B. A. TWO BY MOODY'S AND DOUBLE B. PLUS BY S. AND P. FEES ZERO POINT SEVEN FIVE BANPAIS S. A. INSTITUCION DE BANCA MULTIPLE BRAZIL ONE HUNDRED MILLION DOLLARS OF SEVEN POINT TWO FIVE PERCENT EUROBONDS DUE JANUARY TWENTY EIGHTH NINETEEN NINETY SEVEN AT ISSUE AND FIXED REOFFER PRICE NINETY NINE POINT SEVEN THREE TWO FIVE VIA I. N. G. BANK AT FIXED REOFFER PRICE BONDS YIELD SEVEN POINT THREE FIVE ONE PERCENT SEMIANNUALLY A MARGIN OF TWO HUNDRED NINETY NINE BASIS POINTS OVER THREE YEAR U. S. TREASURY FEES ZERO POINT SEVEN FIVE DEUTSCHE HYPOTHEKEN BANK A. G. GERMANY ONE BILLION MARKS OF DOMESTIC FLOATING RATE NOTES IN TWO TRANCHES VIA DRESDNER BANK A. G. BOTH TRANCHES PAY INTEREST SEMIANNUALLY FLAT AT SIX MONTH LONDON INTERBANK OFFERED RATE FIRST TRANCHE OF FIVE HUNDRED MILLION MARKS DUE AUGUST FIRST TWO THOUSAND ONE AT ISSUE NINETY NINE POINT EIGHT FIVE FEES ZERO POINT THREE MINUS TWO FOR LEAD MANAGER SECOND TRANCHE FIVE HUNDRED MILLION MARKS OF NOTES DUE JUNE TWENTY EIGHTH TWO THOUSAND THREE FEES AND ISSUE PRICE UNDISCLOSED EUROPEAN INVESTMENT BANK SUPRANATIONAL THREE HUNDRED MILLION DUTCH GUILDERS OF FIVE PERCENT EUROBONDS DUE FEBRUARY SIXTEENTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED POINT FOUR SEVEN VIA A. B. N. AMRO BANK N. V. REOFFERED AT NINETY NINE POINT SIX SEVEN TO YIELD FIVE POINT OH SEVEN SIX PERCENT A MARGIN OF TWO POINT THREE FOUR BASIS POINTS OVER SIX POINT SEVEN FIVE PERCENT DUTCH STATE LOAN OF FEBRUARY NINETEEN NINETY NINE FEES ONE MINAS GERAIS BRAZILIAN STATE TWO HUNDRED MILLION DOLLARS OF BONDS WITH COVERED WARRANTS ATTACHED VIA BANQUE INDOSUEZ ISSUE DIVIDED INTO TWO ONE HUNDRED MILLION DOLLARS TRANCHES OF SERIES A NOTES DUE FEBRUARY TENTH NINETEEN NINETY NINE AND SERIES B. NOTES DUE FEBRUARY TENTH TWO THOUSAND BOTH TRANCHES ISSUED AT PAR SERIES A NOTES CARRY SEMIANNUAL COUPON SEVEN POINT EIGHT SEVEN FIVE PERCENT AND SERIES B. NOTES CARRY SEMIANNUAL COUPON EIGHT POINT TWO FIVE PERCENT EACH WARRANT EXERCISABLE TO PURCHASE ONE HUNDRED THOUSAND ORDINARY SHARES OF CEMIG ELECTRICITY PRODUCER OWNED BY MINAS GERAIS EXERCISE PRICE FIXED AT TWO DOLLARS AND SEVENTY FIVE CENTS PER ONE THOUSAND SHARES OR THIRTY PERCENT ABOVE THIRTY DAY AVERAGE CLOSING SHARE PRICE THURSDAY'S CLOSING SHARE PRICE TWO DOLLARS AND FORTY FOUR CENTS PER ONE THOUSAND SHARES EXERCISE PERIOD FOR WARRANTS APRIL TWELFTH TO FEBRUARY TWELFTH NINETEEN NINETY SEVEN FEES ONE POINT SEVEN FIVE POINTS KREDIT ANSTALT FUER WIEDERAUFBAU GERMANY TWO HUNDRED FIFTY MILLION MARKS OF FIXED SLASH FLOATING RATE EURONOTES DUE FEBRUARY SIXTEENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT FOUR VIA TRINKAUS AND BERKHARDT K. G. A. A. FOR FIRST YEAR INTEREST PAID ANNUALLY AT COUPON OF SIX POINT SEVEN FIVE PERCENT FROM YEAR TWO TO MATURITY INTEREST PAID SEMIANNUALLY FLAT AT SIX MONTH FRANKFURT INTERBANK OFFERED RATE TO MAXIMUM EIGHT PERCENT FEES ZERO POINT EIGHT SEVEN FIVE RABOBANK NEDERLAND NETHERLANDS ONE HUNDRED MILLION DOLLARS OF FLOATING RATE RANGE NOTES DUE FEBRUARY TWENTY THIRD NINETEEN NINETY FIVE AT ISSUE AND REOFFER PRICE PAR VIA U. B. S. LIMITED INTEREST FLOATS AT SIXTY BASIS POINTS OVER THREE MONTH LIBOR AND PAID ON DAYS WHEN LIBOR FALLS WITHIN FOLLOWING SIX MONTH RANGES RANGE ONE THREE PERCENT TO FOUR PERCENT RANGE TWO THREE POINT TWO FIVE PERCENT TO FOUR POINT FIVE PERCENT FEES ZERO POINT ONE URBAN MORTGAGE BANK OF SWEDEN SWEDEN ONE HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY FIFTH NINETEEN NINETY SIX AT ISSUE AND FIXED REOFFER PRICE NINETY NINE POINT NINE SIX VIA CHEMICAL INVESTMENT BANK LIMITED INTEREST PAID QUARTERLY AT THREE MONTH LIBOR PLUS TWENTY BASIS POINTS FEES ZERO POINT ONE AS A DESIGNER AND DISTRIBUTOR OF AUDIT MASTER AUDITING SOFTWARE TO NUMEROUS FORTUNE FIVE HUNDRED CORPORATIONS WE ARE IN A POSITION TO KNOW OUR CUSTOMERS' AUDITING HABITS AND BEHAVIORS YOUR DECEMBER THIRTEENTH MARKETPLACE ARTICLE QUOTE FIRMS REVEAL MORE DETAILS OF ENVIRONMENTAL EFFORTS BUT STILL DON'T TELL ALL QUOTE UNFAIRLY SUGGESTS THAT MOST LARGE CORPORATIONS HAVE SOMETHING TO HIDE ABOUT THEIR ENVIRONMENTAL ACTIVITIES IN DEFENSE OF OUR CUSTOMERS YOU SHOULD KNOW THAT ENVIRONMENTAL AUDIT REPORTS MAY REFER TO PROPRIETARY MANUFACTURING PROCESSES THERE ARE MORE THAN ENVIRONMENTAL ISSUES AT STAKE CITICORP IS HOLDING TALKS WITH THE COMPTROLLER OF THE CURRENCY TO END THE STRICT REGULATORY SUPERVISION THE BANKING GIANT HAS BEEN UNDER FOR THE PAST TWO YEARS THE MOVE COULD PAVE THE WAY FOR CITICORP TO REINSTATE ITS DIVIDEND BY APRIL THE REGULATORY AGREEMENT WHICH GIVES THE COMPTROLLER EXTRAORDINARILY BROAD POWERS OVER CITICORP WAS IMPOSED IN FEBRUARY NINETEEN NINETY TWO AS THE BANK WAS STRUGGLING TO RECOVER FROM BILLIONS OF DOLLARS OF BAD LOANS ALTHOUGH THE ENTIRE BANKING INDUSTRY FELL VICTIM TO THE REAL ESTATE SLUMP IN THE EARLY NINETEEN NINETIES CITICORP'S PROBLEMS WERE WORSE THAN MOST PROMPTING REGULATORS TO PUT THE BANK ON A TIGHTER LEASH CITICORP'S FINANCIAL POSITION HAS RECOVERED SINCE THEN AS IT BUILT RESERVES AND CAPITAL WHILE SLASHING COSTS LAST WEEK THE BANK REPORTED RECORD NINETEEN NINETY THREE EARNINGS WHICH ARE EXPECTED TO HELP CITICORP BUILD A STRONG CASE WITH THE COMPTROLLER ALTHOUGH PEOPLE FAMILIAR WITH THE TALKS SAY THERE'S A GOOD CHANCE THE PACT WILL BE TERMINATED THEY CAUTIONED THAT IT IS NOT GUARANTEED JOHN S. REED CITICORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER RECENTLY TOLD A GROUP OF CONSUMER BANKERS THAT THE MEMORANDUM OF UNDERSTANDING WILL BE REVIEWED NEXT MONTH IN THE HOPES OF TERMINATING THE PACT QUOTE IT CERTAINLY COULD HAPPEN IN FEBRUARY QUOTE SAID ONE PERSON FAMILIAR WITH THE DISCUSSIONS BOTH CITICORP AND THE COMPTROLLER DECLINED COMMENT WALL STREET ANALYSTS SAID THAT IF THE REGULATORY ACCORD IS LIFTED CITICORP'S COMMON STOCK DIVIDEND COULD BE REINSTATED BY THE END OF THE FIRST QUARTER PERHAPS AT THE COMPANY'S ANNUAL MEETING MOST EXPECT THE DIVIDEND WON'T BE MORE THAN FIFTY CENTS A SHARE ANNUALLY REGULATORS FORCED CITICORP TO SUSPEND THE DIVIDEND IN LATE NINETEEN NINETY ONE BEFORE THE REGULATORY PACT WAS SIGNED I'D BE REAL SURPRISED IF THEY DIDN'T INITIATE SOMETHING INVOLVING THE DIVIDEND SAID DIANE GLOSSMAN BANKING ANALYST AT SALOMON BROTHERS IT'S MOST LIKELY TO BE A TOKEN DIVIDEND INITIALLY ASIDE FROM THE POSSIBILITY OF A DIVIDEND REINSTATEMENT THE CESSATION OF THE PACT WOULD GIVE THE NATION'S BIGGEST BANKING COMPANY FURTHER ROOM TO EXPAND BUSINESS LINES AMONG OTHER THINGS THE AGREEMENT HAS RESTRICTED THE BANK'S ABILITY TO EXPAND THROUGH ACQUISITIONS MR. REED RECENTLY TOLD EMPLOYEES THAT ALTHOUGH CITICORP WILL BE CUTTING ADDITIONAL COSTS THERE WILL BE CAPITAL AVAILABLE FOR GROWTH CITICORP WASN'T THE FIRST SO CALLED MONEY CENTER BANK TO COME UNDER TIGHTER REGULATORY SCRUTINY WHEN BANKAMERICA CORPORATION FACED ACUTE FINANCIAL DIFFICULTIES IN THE MID NINETEEN EIGHTIES IT ALSO WAS REQUIRED TO SIGN AN AGREEMENT WITH REGULATORS IN LATE NINETEEN NINETY ONE CITIBANK THE BANKING COMPANY'S MAIN BANK SUBSIDIARY WAS ALSO PUT ON THE FEDERAL DEPOSIT INSURANCE CORPORATION'S LIST OF PROBLEM BANKS A LIST RESERVED FOR BANKS IN DIRE FINANCIAL STRAITS IT HAS SINCE BEEN REMOVED FROM THE LIST PEOPLE CLOSE TO THE BANK SAY THE F. D. I. C. DECLINED COMMENT LIKE THE REST OF THE BANKING INDUSTRY CITICORP'S RECOVERY HAS BEEN HELPED BY WIDER NET INTEREST MARGINS OR THE DIFFERENCE BETWEEN LOAN RATES AND THE BANKS' OWN COST OF FUNDS IN ADDITION THE REAL ESTATE MARKET HAS STABILIZED AND BECOME MORE LIQUID ALLOWING FOR THE SALE OF SOME ASSETS CLOSE REGULATORY SCRUTINY ALSO HELPED THE BANK RECOVER A NUMBER OF AREAS OF REGULATORY CONCERN HAVE BEEN EITHER TOTALLY OR PARTIALLY ALLEVIATED SAID MS. GLOSSMAN OF SALOMON BROTHERS SINCE THE NINETEEN NINETY TWO AGREEMENT CITICORP HAS SHARPLY RAISED ITS CAPITAL RATIO THROUGH ASSET SALES AND STOCK SALES AS WELL AS GREATLY REDUCED EXPENSES IN ADDITION THE COMPANY OVERHAULED ITS MANAGEMENT BY PUTTING IN NEW SYSTEMS FOR TRACKING THE RISKS FROM LOAN PORTFOLIOS IT TAPPED CHRISTOPHER STEFFEN THE FORMER CHIEF FINANCIAL OFFICER OF EASTMAN KODAK COMPANY TO OVERSEE FINANCIAL CONTROLS AND EXPENSE MANAGEMENT PROBLEM LOANS ARE ALSO ON THE MEND NONPERFORMING REAL ESTATE LOANS HAVE FALLEN TO FOUR POINT ONE BILLION DOLLARS FROM FIVE POINT SIX BILLION DOLLARS ONE YEAR AGO WHILE RESERVES HAVE RISEN TO ONE HUNDRED PERCENT OF NONPERFORMING COMMERCIAL LOANS FROM TWENTY PERCENT THREE YEARS AGO IT IS NOW CONSIDERED WELL CAPITALIZED FOR REGULATORY PURPOSES THE DECLINE IN PROBLEM REAL ESTATE LOANS IS QUOTE BETTER THAN I PREDICTED QUOTE THOMAS JONES EXECUTIVE VICE PRESIDENT TOLD ANALYSTS LAST WEEK ANOTHER STRONG SIGN OF IMPROVED FINANCIAL CONDITION WAS A STATEMENT BY MOODY'S INVESTORS SERVICE INCORPORATED THAT SAID IT WAS REVIEWING CITICORP'S B. A. A. ONE CREDIT RATING FOR A POSSIBLE UPGRADE HEWLETT PACKARD COMPANY PALO ALTO CALIFORNIA HAS AWARDED A SMALL BUT PIVOTAL CONTRACT FOR NEW BATTERY TECHNOLOGY TO VALENCE TECHNOLOGY INCORPORATED OFFICIALS OF BOTH COMPANIES SAID THE CONTRACT PROVIDES FOR INITIAL DELIVERY OF THREE POINT FIVE MILLION DOLLARS OF VALENCE'S NEW SOLID STATE LITHIUM BATTERIES WHICH PROVIDE MORE ENERGY AT A SMALLER SIZE THAN CONVENTIONAL BATTERIES MORE IMPORTANTLY IT IS AN IMPLICIT ENDORSEMENT OF VALENCE'S TECHNOLOGY OVER A RIVAL OFFERING BY SONY CORPORATION OF TOKYO AND GIVES VALENCE A LEG UP IN THE MOBILE COMPUTING BATTERY MARKET VALENCE BASED IN SAN JOSE CALIFORNIA IS BUILDING A PLANT IN NORTHERN IRELAND SCHEDULED TO START COMMERCIAL PRODUCTION ABOUT JULY IT HAS A CONTRACT WITH MOTOROLA INCORPORATED SCHAUMBURG ILLINOIS TO DELIVER ONE HUNDRED MILLION DOLLARS OF BATTERIES FOR MOTOROLA'S CELLULAR PHONES PROVIDED THE COMMERCIAL PRODUCT MEETS MOTOROLA'S SPECIFICATIONS ROBERT FRANKENBERG AN H. P. VICE PRESIDENT AND GENERAL MANAGER SAID HIS COMPANY LOOKED AT A SONY LITHIUM BATTERY AND A BATTERY OFFERED BY AN UNNAMED THIRD COMPANY BUT SELECTED VALENCE BECAUSE QUOTE WE WERE CONVINCED THAT VALENCE IS THE FURTHEST ALONG IN REAL PRODUCTION QUOTE H. P. ALSO WAS ATTRACTED BY THE ENERGY STORAGE EFFICIENCY PER SPACE OR VOLUME OF THE VALENCE PRODUCT CALVIN REED VALENCE'S CHIEF EXECUTIVE OFFICER SAID HIS COMPANY'S BATTERY TECHNOLOGY HAS MORE SHAPE AND SIZE FLEXIBILITY THAN SONY'S BECAUSE IT USES A SOLID STATE POLYMER ELECTROLYTE INSTEAD OF A LIQUID TO CONNECT ANODES AND CATHODES THE H. P. CONTRACT OPENS A NEW MARKET FOR VALENCE IN MOBILE COMPUTING MR. REED SAID WHILE THE CELLULAR PHONE MARKET IS GROWING AT A RATE OF NEARLY FORTY PERCENT ANNUALLY IN THE U. S. AND IS BOOMING WORLDWIDE THE MOBILE COMPUTING MARKET IS POTENTIALLY AS BIG MR. REED SAID THE CONTRACT CALLS FOR DELIVERIES OVER AN EIGHTEEN MONTH PERIOD WHICH COULD BE INCREASED DEPENDING ON OUR JOINT SUCCESS WITH H. P. TERMS WEREN'T DISCLOSED BECAUSE OF HEAVY CAPITAL INVESTMENTS VALENCE ISN'T EXPECTED TO BE SIGNFICANTLY PROFITABLE UNTIL ITS FISCAL YEAR ENDING MARCH THIRTY FIRST NINETEEN NINETY SIX IT CLOSED AT NINETEEN POINT THREE SEVEN FIVE DOLLARS A SHARE UP ONE POINT ONE TWO FIVE DOLLARS OR SIX POINT TWO PERCENT FRIDAY IN NASDAQ STOCK MARKET TRADING H. P. SHARES CLOSED AT EIGHTY FOUR DOLLARS AND SEVENTY FIVE CENTS UP ONE POINT SIX TWO FIVE DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IN HIS DECEMBER FOURTEENTH EDITORIAL PAGE PIECE QUOTE PUSHING DEMOCRACY IS NO KEY TO PROSPERITY QUOTE ROBERT J. BARRO CITED FREEDOM HOUSE DATA TO MAKE A NUMBER OF JUDGMENTS SUGGESTING THAT DEMOCRACY AND ECONOMIC GROWTH ARE NOT CLOSELY RELATED AS AN ORGANIZATION DEVOTED TO STRENGTHENING DEMOCRACY FREEDOM HOUSE TAKES THE VIEW THAT NEITHER DEMOCRACY NOR AUTHORITARIANISM OFFERS AN ABSOLUTE GUARANTEE OF GROWTH AND PROSPERITY HOWEVER THERE ARE VALUES HIGHER THAN GROWTH AT ANY PRICE IF A DICTATORSHIP ACHIEVES GROWTH THROUGH SLAVERY GENOCIDE DEMOCIDE EXPANSIONISM OR WARFARE WE HAVE A MORAL OBLIGATION TO REJECT THAT DICTATORSHIPS TEND TO WAR AGAINST DEMOCRACIES AND AGAINST EACH OTHER BUT DEMOCRACIES TEND TOWARD PEACE WITH EACH OTHER THE ECONOMIC AND HUMAN COSTS OF SUCH WARS AND CONFLICTS DESERVE TO BE PART OF PROFESSOR BARRO'S BALANCE SHEET SURELY THE DESTRUCTIVE RECORD OF DICTATORSHIPS AFFECTS ECONOMIC GROWTH AND PROPERTY BEYOND THEIR OWN BORDERS AUTHORITARIANS OFTEN AFFECT OUR BOTTOM LINE A PRIVATE BUSINESS SECTOR IS A NECESSARY BUT NOT A SUFFICIENT CONDITION FOR DEMOCRACY AND FREEDOM SEVERAL AUTHORITARIAN ASIAN STATES HAVE THRIVING BUSINESS SECTORS BUT ARE PROFOUNDLY ANTIDEMOCRATIC EVENTUALLY SUCH STATES MAY BECOME DEMOCRATIC BUT THAT IS HIGHLY SPECULATIVE THERE ARE PLENTY OF OTHER AUTHORITARIAN COUNTRIES THAT HAVE POOR ECONOMIES THAT ARE NO ADVERTISEMENT FOR PROFESSOR BARRO'S THESIS THERE IS NO GUARANTEE THAT ECONOMIES MUST CONTINUE TO GROW UNDER AUTHORITARIANISM OR THAT THEY WOULD CEASE TO GROW UNDER DEMOCRACY PROFESSOR GERALD SCULLY OF THE UNIVERSITY OF TEXAS HAS PROVIDED CONVINCING DATA TO SHOW THAT IN THE AGGREGATE OVER THE LONG RUN DEMOCRACIES OUTPERFORM DICTATORSHIPS ECONOMICALLY DEMOCRACY'S TENDENCY TO PROTECT PROPERTY RIGHTS AND THE RULE OF LAW BOOSTS INVESTOR CONFIDENCE BY PROVIDING SOME SENSE OF ECONOMIC SECURITY THIS CONFIDENCE IS IMPOSSIBLE WHERE PRIVATE PROPERTY IS TOLERATED AS THE SUBJECT OF A DICTATOR'S WHIM AND NOT SECURED THROUGH LEGALLY ENTRENCHED RIGHTS WITHOUT DEMOCRATIC CHECKS ON POWER DICTATORS BEHAVE IN ACCORDANCE WITH THEIR OWN VALUES ALONE PROFESSOR BARRO ASSUMES THAT THE AUTHORITARIAN IS BENIGN HOWEVER DICTATORSHIPS OFTEN ACCOMPANY TOTALLY CENTRALIZED ECONOMIES THAT REQUIRE HARSH CONTROLS AND BERLIN WALLS TO MAINTAIN THEMSELVES GIVEN THE LACK OF COUNTERVAILING POLITICAL PRESSURES UNDER MOST DICTATORSHIPS NOTHING CAN STOP THE DICTATOR HIS FAMILY FRIENDS SECRET POLICE AND MILITARY FROM CAPTURING THE ECONOMY FOR THEMSELVES THIS CORRODES GROWTH AND EFFICIENCY MANY EAST EUROPEAN AND AFRICAN COUNTRIES BELIEVE THERE IS A RELATIONSHIP BETWEEN DEMOCRACY MARKET ECONOMICS AND GROWTH CONSEQUENTLY MANY NATIONS HAVE ABANDONED ONE PARTY SYSTEMS AND STATIST ECONOMIES SINCE NINETEEN EIGHTY NINE THEY WON'T ALL SUCCEED WITH EITHER POLITICAL FREEDOM OR ECONOMIC GROWTH BUT AFTER THE FAILURES OF THE COMMUNIST MODEL NONE OF THEM BELIEVES THAT AUTHORITARIANISM WILL BRING PROSPERITY METALLGESELLSCHAFT A. G. THE TROUBLED GERMAN METALS AND TRADING COMPANY SAID IT RESUMED BILL PAYMENTS INTERRUPTED BY RECENT LIQUIDITY TROUBLES QUOTE WITH THE ADOPTION OF THE RESTRUCTURING PLAN BY THE CREDITOR BANKS THE TECHNICAL PRECAUTIONS FOR A RESUMPTION OF PAYMENTS WERE CONCLUDED QUOTE THE COMPANY SAID THEREFORE THE TEMPORARY PAYMENT HALT IS LIFTED TRADE NEGOTIATORS ENDED SIX DAYS OF TALKS WITH A PROPOSAL BUT STILL NO AGREEMENT TO SLASH WORLD WIDE ALUMINUM OUTPUT DELAYING HOPES FOR A QUICK TURNAROUND IN THE SEVERELY DEPRESSED INDUSTRY WESTERN ALUMINUM PRODUCERS EXPRESSED HOPES BEFORE THE SECRETIVE MEETING STARTED THAT DELEGATES FROM THE U. S. THE EUROPEAN UNION RUSSIA CANADA AUSTRALIA AND NORWAY WOULD AGREE TO CUT GLOBAL ALUMINUM OUTPUT AS MUCH AS ELEVEN PERCENT OR TWO MILLION TONS AND OBTAIN AN EXPLICIT COMMITMENT FROM RUSSIA TO CURB ITS ALUMINUM EXPORTS ONE THIRD OR FIVE HUNDRED THOUSAND TONS INSTEAD DELEGATES AGREED TO AIM FOR AN ACCORD ON A PROPOSED QUOTE MEMORANDUM OF UNDERSTANDING QUOTE BY FRIDAY AND TO MEET AGAIN IN CANADA AT THE END OF NEXT MONTH ACCORDING TO A WRITTEN STATEMENT ISSUED BY THE EUROPEAN COMMISSION THE CONTENTS OF THE PROPOSED MEMORANDUM WEREN'T DISCLOSED ANALYSTS WERE ENCOURAGED BY THE FACT THAT GOVERNMENT OFFICIALS AT LEAST WERE CONSIDERING THE MEMORANDUM AND THAT RUSSIA HAD AGREED TO SHARE PRODUCTION DATA WITH THE WEST THE FACT THAT THE E. U. STATEMENT ESTIMATED OVERPRODUCTION AT ONE POINT FIVE MILLION TO TWO MILLION TONS WAS SEEN AS AN INDICATION THAT THE NEGOTIATORS WERE AIMING FOR CUTS OF A SIMILAR LEVEL THERE'S NOTHING IN HERE THAT MAKES YOU THINK THEY'RE NOT GOING DOWN THE ROAD TOWARD PRODUCTION CUTS SAID PETER ANKER AN ANALYST WITH NATWEST SECURITIES CORPORATION IN NEW YORK IT JUST DOESN'T TELL YOU EXACTLY WHERE THEY ARE ON THAT ROAD THE IMPORTANT THING HERE IS THAT THEY'RE STILL WORKING ON A CONCLUSION PERHAPS THE MAIN ACHIEVEMENT IN THE TALKS WHICH INITIALLY WERE SCHEDULED TO LAST FOR ONLY TWO DAYS WAS TO KEEP RUSSIA AT THE NEGOTIATING TABLE DESPITE THE COUNTRY'S FLAGGING COMMITMENT TO MARKET REFORM ON FRIDAY RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN DECLARED THAT BOOSTING INDUSTRIAL PRODUCTION WAS ONE OF HIS NEW GOVERNMENT'S PRIORITIES SEVERAL INDUSTRY OFFICIALS MONITORING THE TALKS IN BRUSSELS LAST WEEK EXPRESSED RELIEF THE RUSSIANS DIDN'T WALK AWAY U. S. AND EUROPEAN ALUMINUM PRODUCERS ARE BLAMING RUSSIA FOR THE OVERCAPACITY PROBLEM SINCE THE COLLAPSE OF THE SOVIET UNION AND ITS METAL HUNGRY MILITARY MACHINE RUSSIAN EXPORTS HAVE SURGED TO AN ESTIMATED ONE POINT FIVE MILLION TONS LAST YEAR FROM THREE HUNDRED THOUSAND TONS IN NINETEEN NINETY STOCKPILES MEANWHILE HAVE GROWN TO AN ESTIMATED FOUR POINT FIVE MILLION TONS WORLD WIDE AND ALUMINUM PRICES HAVE PLUNGED TO NEAR RECORD LOWS U. S. PRODUCERS LED BY ALUMINUM COMPANY OF AMERICA CHAIRMAN PAUL O'NEILL HAD THREATENED TO FILE ANTIDUMPING ACTIONS AGAINST RUSSIAN EXPORTERS IF THE BRUSSELS MEETING DIDN'T PROVE CONCLUSIVE MR. O'NEILL DECLINED TO COMMENT YESTERDAY OFFICIALS OF THE ALUMINUM ASSOCIATION WHICH REPRESENTS U. S. PRODUCERS WEREN'T AVAILABLE FOR COMMENT ONE PERSON FAMILIAR WITH TALKS AMONG A GROUP OF SMALLER U. S. ALUMINUM COMPANIES SAID ITS MEMBERS WILL REVIEW A DRAFT ANTIDUMPING COMPLAINT THIS WEEK EUROPEAN SMELTERS IN TURN HAVE SAID THEY MAY SEEK TO EXTEND THE E. U.'S ONE EIGHTY ZERO ZERO ZERO T. O. N. A YEAR QUOTA FOR RUSSIAN ALUMINUM WHICH IS SCHEDULED TO EXPIRE NEXT MONTH GIVEN THE MEETING'S INCONCLUSIVE RESULT ALUMINUM TRADING ON COMMODITIES MARKETS COULD BE NERVOUS TODAY POTENTIALLY UNDERMINING A RECENT PRICE RECOVERY SPARKED BY EXPECTATIONS OF A PRODUCTIONCUT PACT ON THE LONDON METAL EXCHANGE FRIDAY THE ALUMINUM BID PRICE ROSE FOURTEEN DOLLARS IN ERRATIC TRADING TO ONE THOUSAND TWO HUNDRED ONE DOLLARS A TON BUOYED BY HOPES THAT THE BRUSSELS NEGOTIATORS WOULD REACH AN ACCORD OVER THE WEEKEND BUT AS LAST WEEK'S NEGOTIATIONS SHOWED REACHING A GLOBAL ACCORD IS A TALL ORDER IN ADDITION TO THE POLITICAL PROBLEMS IN RUSSIA OFFICIALS CLOSE TO THE TALKS LAST WEEK INDICATED THAT THERE HAD BEEN DIFFICULTIES IN AGREEING ON HOW TO SHARE OUT THE BURDEN OF CUTBACKS AMONG RUSSIA THE U. S. THE E. U. AND OTHER PRODUCER REGIONS RUSSIA IN PARTICULAR IS SEEKING WESTERN INVESTMENT IN RETURN FOR CURTAILING ALUMINUM OUTPUT THE COUNTRY SAID IT NEEDS HELP TO MODERNIZE ITS HEAVILY POLLUTING SMELTERS AND DEVELOP ALUMINUM CONSUMPTION IN THE CIVILIAN SECTOR BUT EVEN IF THE NEGOTIATIONS WHICH WERE LAUNCHED LAST SUMMER WERE TO YIELD AN ACCORD MANY METALS TRADERS DOUBT IT WOULD WORK ONE KEY UNCERTAINTY IS WHETHER THE RUSSIAN GOVERNMENT IS IN ANY POSITION TO CONTROL THE AMOUNT OF ALUMINUM EXPORTED BY ITS HUGE SIBERIAN SMELTERS WHICH OPERATE INDEPENDENTLY IN ADDITION SEVERAL KEY ALUMINUM PRODUCING NATIONS SUCH AS BRAZIL VENEZUELA THE UKRAINE AND THE PERSIAN GULF STATES AREN'T EVEN PARTICIPATING IN THE EFFORT TO NEGOTIATE A GLOBAL OUTPUT ACCORD JAPAN'S STRAPPED CORPORATIONS ARE SEEKING CREATIVE WAYS TO SKIRT THE NATION'S COSTLY LIFETIME EMPLOYMENT SYSTEM WHILE STILL AVOIDING LAYOFFS IN ONE OF THE MOST STRIKING EXAMPLES TO DATE TOYOTA MOTOR CORPORATION SAID FRIDAY THAT IT WILL CREATE A NEW CATEGORY OF TEMPORARY PROFESSIONAL WORKERS FOR ITS JAPANESE LABOR FORCE TOYOTA WILL TAKE ON AUTOMOTIVE DESIGNERS FOR A LIMITED NUMBER OF ONE YEAR CONTRACTS INSTEAD OF OFFERING THEM A CUSTOMARY LIFELONG JOB THE COMPANY WILL PAY THE DESIGNERS A HIGH ANNUAL SALARY BASED ON INDIVIDUAL MERIT RATHER THAN USING THE TRADITIONAL MODE OF LINKING PAY TO SENIORITY AND COMPANY PERFORMANCE TOYOTA'S ANNOUNCEMENT OF THE PLAN READS IN PLACES LIKE A MANIFESTO AGAINST JAPAN'S LABOR PRACTICES QUOTE THE PRACTICE OF LONG TERM EMPLOYMENT CONTRIBUTED SIGNIFICANTLY TO JAPAN'S ECONOMIC GROWTH AND IS EXPECTED TO CONTINUE POSITIVELY QUOTE IN THE FUTURE TOYOTA'S STATEMENT SAID AS THE BUSINESS CONDITIONS SURROUNDING JAPANESE CORPORATIONS UNDERWENT RADICAL CHANGE HOWEVER IT WAS INEVITABLE THAT THE RIGID ORGANIZATIONAL STRUCTURE OF THE PAST WOULD IMPOSE LIMITS ON CORPORATE GROWTH TOYOTA'S PROGRAM ISN'T THE FIRST OF ITS KIND IN JAPAN AND IT WILL START SMALL INVOLVING A HANDFUL OF WORKERS IN ITS FIRST YEAR BUT TOYOTA PRESIDENT TATSURO TOYODA SAID THE PLAN MARKS THE START OF A BROADER EFFORT TO GRADUALLY INCREASE THE NUMBER OF WHITE COLLAR CONTRACT WORKERS THE COMPANY EMPLOYS IN JAPAN MORE IMPORTANT TOYOTA'S REPUTATION AS ONE OF JAPAN'S LEADING AND MOST CONSERVATIVE INDUSTRIAL CORPORATIONS MEANS THE PLAN COULD HAVE A BIG INFLUENCE ON THE LABOR PRACTICES OF OTHER JAPANESE CONCERNS THIS IS PART OF A LARGE TREND SAID SATORU ISHIKAWA OF THE INSTITUTE OF LABOR ADMINISTRATION A LABOR RESEARCH ORGANIZATION MR. ISHIKAWA NOTED THAT IN RECENT YEARS JAPANESE COMPANIES HAVE STEADILY INCREASED THEIR USE OF WHITE COLLAR CONTRACT WORKERS WHO ARE EASIER TO TERMINATE THAN LIFETIME EMPLOYEES THE USE OF TEMPORARY BLUE COLLAR WORKERS HAS LONG BEEN MUCH MORE WIDESPREAD LAST YEAR NINETEEN PERCENT OF JAPANESE COMPANIES EMPLOYED CONTRACT WORKERS OF BOTH TYPES UP FROM FOURTEEN PERCENT IN NINETEEN EIGHTY NINE ACCORDING TO THE INSTITUTE LIKE OTHER JAPANESE MANUFACTURERS TOYOTA HAS LONG EMPLOYED FACTORY WORKERS ON A CONTRACT BASIS THE TEMPORARY WORK FORCES ACT AS A SAFETY VALVE SWELLING DURING PEAK PERIODS AND SHRINKING IN SLACK TIMES IN JUNE NINETEEN NINETY ONE WHEN AUTO SALES WERE STRONG TOYOTA HAD TWO THOUSAND SIX HUNDRED EIGHTEEN SUCH WORKERS IN JAPAN TODAY AFTER NEARLY THREE YEARS OF FALLING OUTPUT IT HAS CLOSE TO NONE A GROWING NUMBER OF JAPANESE EXECUTIVES ARE VENTING FRUSTRATION WITH THE LIFETIME EMPLOYMENT SYSTEM THE PRACTICE INHIBITS COMPANIES FROM QUICKLY REDUCING THEIR BLOATED WHITE COLLAR WORK FORCES ONE BIG REASON WHY JAPAN IS IN THE MIDST OF ITS FOURTH STRAIGHT YEAR OF FALLING CORPORATE EARNINGS EARLIER LAST WEEK KEIZAI DOYUKAI A LEADING BUSINESS ORGANIZATION RELEASED A SURVEY SHOWING THAT FORTY ONE PERCENT OF TOP JAPANESE EXECUTIVES THINK JAPAN MUST THOROUGHLY REVISE THE LIFETIME EMPLOYMENT SYSTEM TOYOTA ALSO USED ITS ANNOUNCEMENT TO TRY SPIFFING UP ITS SOMEWHAT STODGY IMAGE THE NEW DESIGNERS WILL BE EXPECTED TO PROPOSE NOVEL DESIGNS AND REVITALIZE THE WHOLE COMPANY WITH UNCONVENTIONAL IDEAS THE COMPANY SAID THEIR WORK HOURS WILL BE UNUSUALLY FLEXIBLE BY JAPANESE STANDARDS THE DESIGNERS NEED ONLY SHOW UP AT WORK ONCE A DAY ACCORDING TO THE JOB DESCRIPTION TOYOTA SAID IT WILL HIRE BETWEEN ONE AND FIVE VEHICLE DESIGNERS TO WORK AT ITS HEAD OFFICE IN TOYOTA CITY JAPAN SOMETIME AFTER MAY FIRST THEY WILL START AT AN ANNUAL SALARY OF TEN MILLION YEN EIGHTY NINE THOUSAND EIGHT HUNDRED DOLLARS THE FRENCH ECONOMICS MINISTRY DELIVERED WHAT APPEARED TO BE A RAP ON THE KNUCKLES FRIDAY TO THE CHAIRMAN OF SOCIETE NATIONALE ELF AQUITAINE FOR REMARKS RELATED TO THE OIL COMPANY'S IMPENDING PRIVATIZATION A PRELIMINARY PLACEMENT BEGAN THURSDAY BUT THE SHARE PRICE AND THE DATE OF THE OFFER PERIOD HAVEN'T BEEN ANNOUNCED IN A TESTY COMMUNIQUE THAT MENTIONED NO NAMES THE MINISTRY SAID QUOTE FOLLOWING ASSORTED INFORMATION APPEARING IN THE PRESS THE MINISTER STRESSES THAT THE DATE FOR LAUNCHING THE PUBLIC SHARE OFFER OF ELF AQUITAINE SHARES HASN'T BEEN FIXED YET QUOTE THE MINISTRY SAID THE PRICE OF ELF SHARES WILL BE SET AT THE START OF THE PUBLIC OFFER BY ORDER OF THE ECONOMICS MINISTRY ADDING THAT ANY INDICATION ON THE PRICE PRELIMINARY TO THE DECISION OF THE PRIVATIZATION COMMISSION AND THE MINISTERIAL ORDER SHOULD BE CONSIDERED NULL AND HAVING NEVER EXISTED PHILIPPE JAFFRE PICKED BY THE GOVERNMENT FROM CREDIT AGRICOLE TO HELP PREPARE FOR THE SALE OF THE STATE CONTROLLED OIL COMPANY REPORTEDLY SAID ON FRANCE TWO TELEVISION FRIDAY I THINK THE PRICE OF THE SHARES WILL BE KNOWN IN TWO WEEKS LOOKING AT EARLIER PRIVATIZATIONS THE EARLY PLACEMENT FOR RHONE POULENC S. A. WAS ANNOUNCED OCTOBER TWENTY SEVENTH AND THE OPERATION STARTED NOVEMBER SIXTEENTH THE ELF OPERATION IS SCHEDULED TO START BY APRIL TWENTIETH AT THE LATEST ELF SHARES CLOSED FRIDAY DOWN THREE POINT THREE FRANCS FIFTY SIX CENTS AT FOUR HUNDRED EIGHTEEN POINT FIVE FRANCS SEVENTY DOLLARS AND EIGHTY CENTS A SHARE ON THE PARIS STOCK EXCHANGE THE SPOKESMAN AT ELF SAID NO ONE AT THE COMPANY COULD CONFIRM MR. JAFFRE'S STATEMENTS NOR WOULD ANYONE COMMENT ON THE COMMUNIQUE BUT A MINISTRY SOURCE SAID THAT MR. JAFFRE'S REMARKS APPEARED TO BE THE REASON FOR THE COMMUNIQUE THE HONG KONG GOVERNMENT SAID THAT ITS MAIN INFLATION GAUGE EXPANDED TO EIGHT POINT SIX PERCENT IN DECEMBER BUT THAT THE RATE CAME IN AT ITS TARGET RATE OF EIGHT POINT FIVE PERCENT FOR THE FULL YEAR THE NINETEEN NINETY THREE AVERAGE FOR THE CONSUMER PRICE INDEX QUOTE A QUOTE MEASURE WAS QUOTE SIGNIFICANTLY LOWER QUOTE THAN NINE POINT FOUR PERCENT IN NINETEEN NINETY TWO AND TWELVE PERCENT IN NINETEEN NINETY ONE THE GOVERNMENT SAID IN DECEMBER THE RATE EDGED HIGHER ON THE BACK OF FASTER RISES IN FOOD PRICES PARTICULARLY SALT WATER FISH AND FRESH FRUITS MUCH OF HONG KONG'S FOOD IS IMPORTED FROM MAINLAND CHINA RAYMOND C. FOSTER JUNIOR SEVENTY FOUR FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF STONE AND WEBSTER INCORPORATED SATURDAY IN STUART FLORIDA OF AN ANEURISM RICHARD P. DELIO RESIGNED AS CHIEF FINANCIAL OFFICER OF THIS DESIGNER AND PRODUCER OF SCIENTIFIC EQUIPMENT AND SERVICES QUOTE TO PURSUE OTHER INTERESTS QUOTE THE COMPANY SAID JOHN F. ALEXANDER CORPORATE CONTROLLER WILL ASSUME THE RESPONSIBILITIES AS ACTING CHIEF FINANCIAL OFFICER MR. DELIO JOINED E. G. AND G. IN NINETEEN SEVENTY SEVEN AS A GROUP CONTROLLER AND SINCE THEN HAS HELD SEVERAL OTHER POSITIONS IN NINETEEN NINETY ONE HE WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER COMMITTEES REPRESENTING A BROAD CROSS SECTION OF U. S. BUSINESS ENDORSED THE WORLD TRADE PACT NEGOTIATED LAST MONTH BUT EXPRESSED CONSIDERABLE DISAPPOINTMENT THAT THE ACCORD DIDN'T ACCOMPLISH MORE AT THE SAME TIME A COMMITTEE REPRESENTING U. S. LABOR BITTERLY CRITICIZED THE TRADE DEAL NEGOTIATED UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN GENEVA QUOTE THE FAILURE OF THE ACCORD TO ADDRESS THE SOCIAL SIDE OF THE PRODUCTION EQUATION WORKER RIGHTS AND STANDARDS AND ENVIRONMENTAL PROTECTIONIS A MAJOR SHORTCOMING QUOTE SAID A LABOR ADVISORY COMMITTEE THE COMMITTEE REPORTS REPRESENT THE MOST DETAILED EVALUATION THE PRIVATE SECTOR WILL MAKE OF THE G. A. T. T. PACT THE TWO DOZEN PANELS FILED THEIR COMMENTS TOTALING MORE THAN ONE THOUSAND PAGES BY JANUARY FIFTEENTH AS REQUIRED BY U. S. TRADE LAW BUT THE REPORTS WON'T BE DISTRIBUTED PUBLICLY UNTIL THIS WEEK THE COMMENTS OF THE PANELS WHICH REPRESENT MANUFACTURING AGRICULTURE AND SERVICE INDUSTRIES FORESHADOW THE CONGRESSIONAL FIGHT OVER THE G. A. T. T. PACT LABOR AND ENVIRONMENTAL GROUPS ARE EXPECTED TO OPPOSE THE AGREEMENT THOUGH NOT WITH THE VEHEMENCE WITH WHICH THEY ATTACKED THE NORTH AMERICAN FREE TRADE AGREEMENT AND U. S. BUSINESSES ARE EXPECTED TO BE SUPPORTIVE BUT NOT ESPECIALLY ENTHUSIASTIC FEW INDUSTRIES ARE LIKELY TO CAMPAIGN AGAINST THE ACCORD HOWEVER ALL OF THE PARTIES WILL BE LOBBYING IN CONGRESS FOR LEGISLATION THAT WILL COMMIT THE U. S. TO INTERPRET THE G. A. T. T. PACT IN WAYS THEY FIND ADVANTAGEOUS EVEN THE MOTION PICTURE ASSOCIATION OF AMERICA WHICH WAS SORELY DISAPPOINTED THAT THE U. S. COULDN'T GET THE EUROPEAN UNION TO DISMANTLE QUOTAS ON FOREIGN BROADCASTS DIDN'T OPPOSE THE G. A. T. T. ACCORD INSTEAD ASSOCIATION PRESIDENT JACK VALENTI COUCHED HIS COMPLAINTS IN A PANEL REPORT AS A GRIEVANCE WHICH HAS TO BE ILLUMINATED U. S. TRADE OFFICIALS HAVE HINTED THAT THEY WOULD TAKE RETALIATORY ACTION AGAINST THE E. U. BUT SO FAR THE ADMINISTRATION HASN'T EVEN MET TO CONSIDER ACTION THE BIGGEST COMMITTEE WHICH ADVISES THE PRESIDENT ON TRADE POLICY AND IS PACKED WITH THE U. S.'S LARGEST CORPORATIONS SAID THAT ON BALANCE THE PACT ADVANCES U. S. ECONOMIC INTERESTS BUT THE PANEL SAID IT WAS DISAPPOINTED THAT MANY OBJECTIVES WERE NOT FULLY ACHIEVED THE PANEL CITED A LACK OF PROGRESS IN FINANCIAL BASIC TELECOMMUNICATIONS AND AUDIOVISUAL SERVICES AS WELL AS INSUFFICIENT TARIFF REDUCTIONS IN WOOD PRODUCTS NON FERROUS METALS AND CHEMICALS HOWEVER IT NOTED THAT TARIFF NEGOTIATIONS WERE STILL CONTINUING AND THE U. S. IS PRESSING FOR LARGER CUTS ON THE POSITIVE SIDE THE TRADE PANEL SAID THE PACT ELIMINATED TARIFFS IN MANY COUNTRIES AND ON A NUMBER OF INDUSTRIES IN WHICH THE U. S. IS HIGHLY COMPETITIVE BEER PHARMACEUTICALS FURNITURE PAPER TOYS AND MEDICAL EQUIPMENT OVERALL TARIFFS IN DEVELOPED COUNTRIES WERE CUT BY AN AVERAGE OF THIRTY THREE PERCENT THE REDUCTIONS SHOULD INCREASE U. S. EXPORTS AND LEAD TO LOWER PRICES AND MORE CONSUMER CHOICE IN THE DOMESTIC MARKETPLACE THE REPORT SAID IN AGRICULTURE THE COMMITTEE PRAISED LIMITATIONS ON EXPORT SUBSIDIES AND THE DECISION BY JAPAN AND SOUTH KOREA TO OPEN THEIR RICE MARKETS TO IMPORTS WITH PATENTS AND COPYRIGHTS THE COMMITTEE COMMENTED THE PACT REPRESENTS BOTH SUCCESS AND FAILURE THE PANEL PRAISED THE GLOBAL COMMITMENTS TO PROTECT INTELLECTUAL PROPERTY BUT PANNED THE QUOTE LENGTH OF THE TRANSITION PERIODS QUOTE BEFORE DEVELOPING COUNTRIES MUST ENFORCE PATENTS FOR INSTANCE THE PACT ALLOWS INDIA A BIG CENTER FOR PIRATED DRUGS TO CONTINUE FLOUTING PHARMACEUTICAL PATENTS FOR ANOTHER DECADE PANELS REPRESENTING THE CHEMICAL AND PAPER INDUSTRIES SAID THEY CURRENTLY OPPOSE THE MAIN PORTION OF THE PACT BECAUSE THE TARIFF CUTS WERE INADEQUATE NEGOTIATIONS IN THOSE AREAS ARE EXPECTED TO CONTINUE UNTIL THE END OF MARCH THE G. A. T. T. PACT WILL BE SIGNED BY TRADE NEGOTIATORS IN MARRAKECH MOROCCO ON APRIL FIFTEENTH THE ACCORD WILL THEN GO TO CONGRESS AND OTHER LEGISLATIVE BODIES FOR RATIFICATION A REPORT BY THE U. S. PAPER INDUSTRY SAID THAT THE WORLD TRADING AGREEMENT NEGOTIATED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE GENERALLY MEETS THE INDUSTRY'S OBJECTIVES BUT THAT THE INDUSTRY STILL HAS SOME RESERVATIONS AN ARTICLE MONDAY INCORRECTLY REPORTED THAT THE PAPER INDUSTRY OPPOSES THE ACCORD IT AIN'T HEAVY IT'S OUR ENDOWMENT BOYS TOWN THE NEBRASKA INSTITUTION MADE FAMOUS BY A HOLLYWOOD MOVIE AND SYMBOLIZED BY A BOY TOTING HIS BROTHER IS SUING A NEW WATCHDOG GROUP FOR BESMIRCHING THE CHARITY'S NAME IN A SUIT FILED IN FEDERAL COURT IN BROOKLYN FATHER FLANAGAN'S BOYS' HOME KNOWN AS BOYS TOWN ALLEGES THAT THE SAINT LOUIS BASED AMERICAN INSTITUTE OF PHILANTHROPY AND ITS PRESIDENT DANIEL BOROCHOFF DEFAMED AND DAMAGED THE CHARITY BY GIVING IT A GRADE OF QUOTE F. QUOTE IN A RATING GUIDE AND BY LISTING IT AS ONE OF THE QUOTE LEAST NEEDY CHARITIES QUOTE DUE TO AN ENDOWMENT FUND OF ABOUT A HALF BILLION DOLLARS THE UNUSUAL ACTION SPOTLIGHTS THE DELICATE PHILANTHROPIC ISSUE OF PUBLIC FUND RAISING BY CHARITIES THAT HAVE BIG ASSET HOLDINGS IN ENDOWMENTS AND OTHER RESERVES THE SUIT ALSO MARKS A RARE MOVE BY A CHARITY TO OPENLY BRAWL WITH A GADFLY UNDERLYING THE CONFLICT IS THE BROADER ISSUE OF ASSET ACCUMULATION IN THE NONPROFIT WORLD FUND RAISING WITH A BIG SURPLUS IS A TOUCHY ISSUE SAYS ELAINE ALLEN HEAD OF NOT FOR PROFIT ORGANIZATIONS AT ERNST AND YOUNG THE BIGGEST CONCERN SHE SAID CENTERS ON TAKING GIFTS FROM A PUBLIC THAT BELIEVES IT IS FUNDING IMMEDIATE PROGRAMS WHILE THE FUNDS MAY BE SQUIRRELED AWAY WITHOUT A CLEAR PLAN FOR SPENDING THEM ACCUMULATED ASSETS IN THE FORMS OF TRUE ENDOWMENTS BOARD DESIGNATED ENDOWMENTS RESTRICTED FUNDS UNRESTRICTED FUNDS AND RESERVES RAISE ISSUES THAT HAVE KEPT ACCOUNTANTS HUMMING FOR YEARS IN DECIDING HOW TO TREAT THE SUMS NEW ACCOUNTING STANDARDS FOR NONPROFITS NEXT YEAR WILL REQUIRE CLEARER DISTINCTIONS BETWEEN RESTRICTED AND UNRESTRICTED FUNDS MR. BOROCHOFF STARTED THE LATEST FRACAS IN NOVEMBER WHEN HE ISSUED HIS FIRST RATINGS GUIDE HEADLINED GIVERS BEWARE ASSIGNING LETTER GRADES TO NEARLY THREE HUNDRED CHARITIES BASED ON THEIR REQUIRED FINANCIAL FILINGS AND RANKING THEM BASED ON HOW MUCH THEY SPEND ON FUND RAISING AND ON PROGRAMS HE ALSO NAMED THE LEAST NEEDY CHARITIES CALCULATING THE NUMBER OF YEARS FUNDS ON HAND WOULD LAST BOYS TOWN RANKED SIXTH HE CALCULATED WITH FIVE HUNDRED SIXTY SEVEN POINT EIGHT MILLION DOLLARS THAT WOULD LAST FIVE POINT NINE YEARS HE GAVE CHARITIES WITH FIVE YEARS OR MORE OF FUNDS ON HAND AN OVERALL F. RATING SHRINERS HOSPITAL FOR CRIPPLED CHILDREN TOOK FIRST PLACE WITH FOUR POINT FOUR BILLION DOLLARS OR THIRTEEN POINT FIVE TIMES ANNUAL SPENDING QUOTE WE WERE BOTHERED BY QUOTE THE ARTICLE SAID A SHRINERS OFFICIAL WHO CALLED THE CHARACTERIZATION UNFAIR BUT ADDED THAT NO LEGAL ACTION WAS LIKELY IF YOU WANT TO TOTALLY DISREGARD INFLATION DISREGARD EXPANDING SERVICES AND GO OUT OF BUSINESS IN THIRTEEN YEARS I GUESS HE'S RIGHT HE SAID THE GROUP OPERATES NINETEEN HOSPITALS FOR CRIPPLED CHILDREN AND THREE BURN INSTITUTES THE COUNCIL OF BETTER BUSINESS BUREAUS' PHILANTHROPIC ADVISORY SERVICE IN WASHINGTON SAYS BOYS TOWN MEETS ITS STANDARDS THE NATIONAL CHARITIES INFORMATION BUREAU IN NEW YORK DOESN'T CURRENTLY HAVE A REPORT ON BOYS TOWN SAYING IT HAS INSUFFICIENT INFORMATION AS A GENERAL RULE OF THUMB THE BUREAU CONSIDERS HAVING ASSETS ON HAND TO COVER TWO YEARS' WORTH OF OPERATING EXPENSES TO BE A REASONABLE CUSHION REPRESENTED BY THE MANHATTAN LAW FIRM MILBANK TWEED HADLEY AND MCCLOY BOYS TOWN CHARGED THAT THE WATCHDOG REPORT IMPLIES SEVERAL CORRUPT AND WASTEFUL PRACTICES AND HAS ALREADY COST THE GROUP SOME CONTRIBUTIONS THE SUIT SEEKS TWO MILLION DOLLARS IN COMPENSATORY DAMAGES AS WELL AS UNSPECIFIED PUNITIVE DAMAGES AS WELL AS AN ORDER BLOCKING MR. BOROCHOFF FROM DISTRIBUTING THE REPORT MR. BOROCHOFF FOR HIS PART SAID WE HAVE A RIGHT TO SCALE THEM AND LEAVE IT TO THE PUBLIC IF THEY WANT TO GIVE HE NOTED THAT HIS REPORT DOES POINT OUT THE POSITIVE STUFF THAT THEY GIVE A LOT OF MONEY TO PROGRAMS IT ISN'T THE FIRST TIME THAT BOYS TOWN HAS TAKEN HEAT FOR ITS ENDOWMENT IN NINETEEN SEVENTY TWO AFTER CRITICISM THAT THE ORGANIZATION WAS SOLICITING MONEY EVEN THOUGH IT HAD ABOUT TWO HUNDRED MILLION DOLLARS IN A BOARD DESIGNATED ENDOWMENT FUND BOYS TOWN VIGOROUSLY REVAMPED ITS FINANCES AND ITS CHILD SERVICE PROGRAMS TODAY THE SEVENTY SIX YEAR OLD CHARITY SERVES OVER SEVENTEEN THOUSAND CHILDREN IN NINE STATES AND THE DISTRICT OF COLUMBIA WITH RESIDENTIAL CARE A NEBRASKA HOSPITAL AND OTHER PROGRAMS FATHER FLANAGAN'S FOUNDATION FUND INCORPORATED WHICH CONTAINS THE ENDOWMENT FUND CONTRIBUTES ABOUT THIRTY PERCENT TO FORTY PERCENT OF THE BOYS TOWN ANNUAL EXPENDITURES OF ABOUT EIGHTY MILLION DOLLARS A YEAR BOYS TOWN SAYS IT HASN'T PUT ANY GENERAL GIFTS INTO THE ENDOWMENT FUND SINCE NINETEEN SEVENTY ONE AT ISSUE IN THE LAWSUIT IS THE PUBLIC'S INTERPRETATION OF THE GRADING SYSTEM MR. BOROCHOFF USED MR. BOROCHOFF GAVE BOYS TOWN THE F. SOLELY BECAUSE THE CHARITY'S ACCUMULATED ASSETS SURPASSED A MAXIMUM AMOUNT HE DEEMED EXCESSIVE FIVE YEARS' WORTH OF OPERATING FUNDS THE LAWSUIT CHARGES THAT DONORS READ NEWS STORIES ON THE REPORT ISSUED LAST NOVEMBER AND INTERPRETED THE F. TO MEAN BOYS TOWN MIGHT BE RELATED TO GENERAL REFERENCES ELSEWHERE IN THE REPORT TO OUTRIGHT CORRUPTION AT UNSPECIFIED CHARITIES MR. PETER SAID HE MIGHT HAVE LIVED WITH THE BOROCHOFF RATING IF THE REPORT HAD FURTHER EXPLAINED THAT THERE ARE QUOTE PHILOSOPHICAL DIFFERENCES ABOUT THE CRITERIA QUOTE SOME DONORS FOR INSTANCE PREFER GIVING TO WELL ENDOWED WELL RUN GROUPS BECAUSE THEY BELIEVE THOSE ORGANIZATIONS WILL BE AROUND FOREVER WHILE OTHER DONORS PREFER HELPING OUT HAND TO MOUTH ORGANIZATIONS HE SAID BETA WELL SERVICE INCORPORATED'S BUFFETED STOCK REGAINED LOST GROUND FRIDAY AFTER THE COMPANY UNVEILED AN AGREEMENT TO ACQUIRE PART OF A THIRD OIL PRODUCING PROJECT IN THE FORMER SOVIET UNION AND SAID IT HAD ACQUIRED A CANADIAN COMPETITOR THE OIL FIELD SERVICES COMPANY SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE A TWENTY FIVE PERCENT INTEREST IN A JOINT VENTURE IN THE STAVRAPOL REGION OF RUSSIA THE TRANSACTION IS EXPECTED TO CLOSE WITHIN A FEW WEEKS IT SAID THE PROJECT'S AIM IS TO BOOST PRODUCTION FROM EIGHTEEN OIL FIELDS THAT CURRENTLY HAVE SEVEN HUNDRED WELLS EARLIER THIS MONTH BETA WELL SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE JOINT VENTURE INTERESTS IN AN EIGHT HUNDRED WELL OIL PROJECT IN KAZAKHSTAN AND IN AN OIL PROJECT IN THE KOMI REGION OF RUSSIA BETA WELL SAID IT WILL ACQUIRE ITS INTEREST IN THE STAVRAPOL PROJECT FROM CLOSELY HELD GENESIS EURASIA CORPORATION HOUSTON WHICH PRESENTLY HOLDS FIFTY PERCENT OF THE JOINT VENTURE IT SAID IT WILL INVEST AN INITIAL TWO POINT FIVE MILLION U. S. DOLLARS IN THE PROJECT AND AFTER THAT WILL SHARE FURTHER PROJECT COSTS WITH GENESIS SEPARATELY BETA WELL SAID IT PURCHASED CLOSELY HELD SUNDOWN WELL SERVICE LIMITED FOR THREE POINT TWO MILLION CANADIAN DOLLARS TWO POINT FOUR MILLION U. S. DOLLARS BETA SAID SUNDOWN IS A BROOKS ALBERTA OIL FIELD SERVICES COMPANY WITH ELEVEN SERVICE RIGS BETA WELL SHARES CLOSED AT THIRTEEN POINT SIX TWO FIVE DOLLARS FRIDAY UP ONE POINT SIX TWO FIVE DOLLARS OR FOURTEEN PERCENT IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE EARLIER LAST WEEK THE COMPANY'S SHARE PRICE FELL MORE THAN FOURTEEN PERCENT AFTER THE COMPANY CONFIRMED THAT IT HAD LOST A LARGE WELL SERVICING CONTRACT IN WESTERN SIBERIA GENERAL MOTORS CORPORATION TEMPORARILY HALTED PRODUCTION OF REDESIGNED NINETEEN NINETY FOUR S. TEN PICKUP TRUCKS AND THEN RECALLED ALL ONE HUNDRED TWENTY THOUSAND OF THE TRUCKS BUILT SO FAR TO FIX DEFECTIVE FUEL TANKS THAT PUT THE VEHICLES OUT OF COMPLIANCE WITH FEDERAL SAFETY STANDARDS THE DEFECT WHICH MADE THE TRUCKS ILLEGAL TO SELL COULD LEAD TO GASOLINE SPILLING FROM THE FUEL TANK IN A CRASH BY COINCIDENCE THAT'S THE PROBLEM AT THE HEART OF A SEPARATE DISPUTE BETWEEN G. M. AND FEDERAL SAFETY REGULATORS WHO SAY SOME FOUR MILLION OF G. M.'S NINETEEN SEVENTY THREE TO NINETEEN EIGHTY SEVEN FULL SIZED PICKUPS ARE UNSAFE BECAUSE THEY'RE PRONE TO LEAK FUEL AFTER SIDE IMPACT COLLISIONS NATIONAL HIGHWAY TRANSPORTATION SAFETY ADMINISTRATION STAFFERS HAVE RECOMMENDED A RECALL OF THE OLDER TRUCKS BUT A FINAL DECISION RESTS WITH TRANSPORTATION SECRETARY FEDERICO PENA G. M. SAID IT'S UNAWARE OF ANY FUEL LEAKS OR ACCIDENTS RELATED TO THE DEFECTIVE NINETEEN NINETY FOUR CHEVY S. TEN AND G. M. C. SONOMA SMALL TRUCKS BUT A G. M. SPOKESWOMAN ACKNOWLEDGED FRIDAY QUOTE WE DIDN'T NEED THIS TO HAPPEN TO THIS PRODUCT QUOTE THE NEW S. TEN PICKUP IS A CRUCIAL HIGHVOLUME PRODUCT IN A PROFITABLE SEGMENT G. M. HAS TWO LARGE ASSEMBLY FACTORIES IN SHREVEPORT LOUISIANA AND LINDEN N. J. DEDICATED TO THE VEHICLE JUST EIGHT DAYS AGO G. M. SETTLED A STRIKE AT THE SHREVEPORT PLANT THAT COST NEARLY A WEEK'S PRODUCTION G. M. SAID IT TOOK THE UNUSUAL STEPS TO CONTAIN ITS POTENTIAL LIABILITY AND REASSURE SOME FIFTY THREE THOUSAND CUSTOMERS WHO HAVE ALREADY TAKEN DELIVERY OF NEW S. TENS THAT THE VEHICLES WILL BE MADE ROADWORTHY IN ADDITION G. M. WILL FIX ANOTHER SIXTY SEVEN THOUSAND TRUCKS NOW IN INVENTORY BEFORE THEY ARE DELIVERED TO CUSTOMERS G. M. HALTED PRODUCTION OF THE TRUCKS FOR A DAY LAST WEDNESDAY TO TRACK DOWN THE PROBLEM ON THURSDAY THE COMPANY RESTARTED PRODUCTION USING PROPERLY BUILT TANKS ON FRIDAY G. M. OFFICIALS BEGAN CALLING DEALERSHIPS DIRECTLY TO EXPLAIN THE SITUATION LETTERS TO CUSTOMERS WON'T GO OUT UNTIL THIS WEEK G. M. SAID G. M. SAID IT LEARNED THE S. TEN TRUCKS FAILED TO MEET FEDERAL SAFETY STANDARDS IN EARLY JANUARY AFTER OFFICIALS OF THE N. H. T. S. A. CRASH TESTED ONE OF THE TRUCKS AS PART OF THE TEST THE TRUCK WAS TIPPED OVER DURING THAT TEST THE SAMPLE S. TEN TRUCK LEAKED FUEL FROM A JOINT THAT CONNECTS A VENT TO THE FILLER TUBE OF THE GAS TANK G. M. BLAMED THE DEFECT ON THE FUEL TANK SUPPLIER'S FAILURE TO FOLLOW G. M.'S SPECIFICATIONS IN ATTACHING THE VENT TO THE FILLER TUBE G. M. WOULDN'T NAME THE TANK MAKER BUT THE SPOKESWOMAN SAID THE SUPPLIER WOULD BEAR THE COST OF THE RECALL THE SPOKESWOMAN ALSO INSISTED THAT THE SUPPLIER'S FAILURE TO FOLLOW G. M.'S SPECIFICATIONS WASN'T THE RESULT OF CORNER CUTTING IN THE FACE OF G. M.'S CAMPAIGN TO SQUEEZE COSTS OUT OF ITS PURCHASING THE NINETEEN NINETY FOUR S. TEN'S FUEL TANK IS LOCATED INSIDE THE VEHICLE'S STEEL FRAME RAILS IN CONTRAST THE OLD PICKUPS THAT ARE THE SUBJECT OF THE SEPARATE N. H. T. S. A. PROBE INTO FUEL LEAKAGE HAVE TANKS POSITIONED OUTSIDE THE STEEL FRAME RAILS A DESIGN N. H. T. S. A. HAD INITIALLY APPROVED BUT NOW QUESTIONS W. R. GRACE AND COMPANY'S NATIONAL MEDICAL CARE INCORPORATED UNIT UNDER SHARP PRODDING FROM THE FOOD AND DRUG ADMINISTRATION AGREED TO CORRECT MANUFACTURING PROBLEMS AT ITS FIVE U. S. PRODUCTION FACILITIES NATIONAL MEDICAL THE NATION'S BIGGEST PROVIDER OF DIALYSIS SERVICES AND PRODUCTS PRESENTED THE CONSENT DECREE AS THE CULMINATION OF QUOTE SIX MONTHS OF COOPERATIVE EFFORT QUOTE DURING WHICH IT DEMONSTRATED TO THE F. D. A. THAT IT HAS ENHANCED QUALITY CONTROL AT ITS PLANTS BUT THE AGENCY GAVE A HARSH ASSESSMENT OF WHAT ONE OFFICIAL CHARACTERIZED AS THE COMPANY'S RECORD OF CHRONIC PROBLEMS WITH QUALITY CONTROL WHICH PROMPTED THE EXAMINATION NATIONAL MEDICAL'S MANUFACTURING DEFICIENCIES HAVE CAUSED NUMEROUS PROBLEMS THAT HAVE AFFECTED THE SAFETY AND QUALITY OF ITS PRODUCTS THE F. D. A. SAID ADDING THAT THE SHORTCOMINGS HAVE GENERATED EIGHTEEN MEDICAL DEVICE RECALLS SINCE NINETEEN EIGHTY SEVEN NINE OF THEM IN THE PAST YEAR ALONE IN THE CONSENT DECREE NATIONAL MEDICAL PLEDGED TO BRING THE FACILITIES INTO COMPLIANCE WITH SO CALLED GOOD MANUFACTURING PRACTICE REQUIREMENTS THE PACT LEAVES THE COMPANY'S DOMESTIC PRODUCTION INTACT AND APPEARS TO PAVE THE WAY FOR NATIONAL MEDICAL TO RESUME IMPORTING PRODUCTS SOON FROM TWO OVERSEAS PLANTS WHOSE OUTPUT THE F. D. A. EARLIER BANNED WHILE NATIONAL MEDICAL NEITHER ADMITTED NOR DENIED ANY WRONGDOING THE DECREE SETTLED A LAWSUIT THAT THE U. S. SIMULTANEOUSLY FILED AGAINST NATIONAL MEDICAL AND THREE TOP OFFICERS IN FEDERAL COURT IN NEWARK N. J. UNDER THE DECREE NATIONAL MEDICAL'S FACILITIES CAN CONTINUE TO OPERATE AND WILL BE EXAMINED ON A PRESET SCHEDULE ALREADY UNDER WAY IF THE PLANTS DON'T PASS MUSTER THE CONSENT DECREE SAYS THEY COULD BE ORDERED CLOSED THE F. D. A. NOTED THAT IT HAS BEEN NEGOTIATING WITH THE COMPANY FOR SEVERAL MONTHS AND THAT MANY OF THE MANUFACTURING SHORTCOMINGS HAVE BEEN CLEARED UP WHILE NATIONAL MEDICAL RECOGNIZED THE NEED TO IMPROVE ITS MANUFACTURING PRACTICES GRACE SAID AT NO TIME DID THEIR MANUFACTURING PRACTICES ENDANGER THE LIVES OF ITS PATIENTS AND AT NO TIME WAS NATIONAL MEDICAL CHARGED BY F. D. A. OR OTHER PARTIES WITH DOING SO BUT IN AN INTERVIEW RONALD JOHNSON DIRECTOR OF COMPLIANCE FOR THE F. D. A.'S CENTER FOR MEDICAL DEVICES PRESENTED A DARKER PICTURE NATIONAL MEDICAL HAS HAD A REAL PROBLEM FOR THE PAST FOUR TO FIVE YEARS HE SAID IT WASN'T JUST ONE FACILITY WITH A PROBLEM IT WAS MULTIPLE FACILITIES IN THIS COUNTRY AND OUTSIDE AND WE BELIEVE THAT WAS REFLECTIVE OF A CORPORATE WIDE ATTITUDE TOWARD COMPLIANCE QUOTE AFTER LETTERS TO INDIVIDUAL FACILITIES FAILED TO YIELD SATISFACTORY CORRECTIVE ACTION HE SAID WE FELT WE HAD TO BE MORE AGGRESSIVE TO GET THE COMPANY'S ATTENTION THE F. D. A. OFFICIAL NOTED THAT NO PATIENT DEATHS COULD BE DIRECTLY ATTRIBUTED TO THE PROBLEMS HE STRESSED THAT DIALYSIS PATIENTS ARE VERY ILL AND THAT MANY OF THEM DIE OR SUFFER ILLNESS IN THE NORMAL COURSE OF EVENTS BUT HE ADDED THAT WE BELIEVE THAT PROBLEMS OF THIS TYPE HAVE CONTRIBUTED TO THE MORTALITY LEVEL AMONG DIALYSIS PATIENTS IN GENERAL THESE ARE THE KINDS OF THING THAT WE NEED TO CORRECT IF WE'RE GOING TO REDUCE THE MORBIDITY RATE AMONG SUCH KIDNEY PATIENTS THE PROBLEMS THAT CONCERNED THE F. D. A. INCLUDED PLASTIC BLOOD TUBES CONTAMINATED WITH A CHEMICAL AGENT USED TO STERILIZE THEM DURING PRODUCTION THE F. D. A. OFFICIAL SAID THE AGENCY ALSO FOUND EXCESSIVE ENDOTOXINS POTENTIAL FEVER AGENTS IN SOME OF THE TUBES WHICH ARE KNOWN AS BLOODLINES ONE RECALL INVOLVED BLOODLINES CONTAMINATED WITH PESTICIDE IN SOME CASES MR. JOHNSON SAID BLOODLINES WERE FOUND TO BE PRONE TO LEAKING AT CONNECTIONS A SITUATION THAT HE SAYS PRESENTED A POTENTIAL HEALTH RISK NOT ONLY TO THE PATIENTS BUT ALSO TO HEALTH CARE WORKERS CONTAINERS FOR SOME PRODUCTS USED IN A CERTAIN KIND OF INTERNAL DIALYSIS HAD MINUTE HOLES PRESENTING AN OPPORTUNITY FOR MICROBIAL CONTAMINATION HE SAID AND IN NINETEEN NINETY TWO HE RECALLED A DIALYZER CARTRIDGE MADE AT THE UNIT'S DUBLIN IRELAND FACILITY WAS DISCOVERED TO BE CONTAMINATED WITH ETHER A RESIDUE OF THE CLEANING PROCESS AND WE HAD SOME REACTIONS AND INJURIES AS A RESULT OF THAT LAST SPRING THE F. D. A. BANNED IMPORTATION OF DIALYSIS PRODUCTS MADE AT NATIONAL MEDICAL SITES IN DUBLIN AND REYNOSO MEXICO THAT BAN IS STILL LARGELY IN PLACE ALTHOUGH THE MEXICO PLANT IS BEING ALLOWED TO SHIP SOME OF THE BLOODLINES BECAUSE NATIONAL MEDICAL'S RIVALS HAVEN'T BEEN ABLE TO TURN OUT AN ADEQUATE SUPPLY THE CONSENT DECREE INCLUDES THOSE PLANTS IN THE INSPECTION SCHEDULE AND IMPORTS WILL BE ALLOWED TO RESUME AFTER F. D. A. CERTIFICATION IN A STATEMENT ISSUED BY ITS BOCA RATON FLORIDA BASED PARENT NATIONAL MEDICAL SAID IT QUOTE REMAINS COMMITTED AS IT HAS THROUGH ITS TWENTY SIX YEAR LIFE TO THE HIGHEST QUALITY OF PATIENT CARE QUOTE NATIONAL MEDICAL ADDED THAT THE MORTALITY RATE AT IT IS BETTER THAN ANY OTHER PROVIDER OF DIALYSIS SERVICES IN THE U. S. NATIONAL MEDICAL OPERATES ABOUT FOUR HUNDRED FIFTY DIALYSIS SITES NATIONWIDE AND OVERALL REVENUE FOR NINETEEN NINETY THREE IS EXPECTED TO BE ABOUT ONE POINT FIVE BILLION DOLLARS IN AN INTERVIEW A NATIONAL MEDICAL OFFICIAL SAID THE COMPANY THINKS THAT THE SERIOUSNESS OF OUR EFFORT AND THE SUCCESS OF OUR EFFORT TO DATE IN RECTIFYING THE QUALITY CONTROL ISSUES OF CONCERN TO THE F. D. A. ARE TESTIFIED TO BY THE NATURE OF THE AGREEMENT WE SIGNED IN COMPARISON WITH TERMS OF OTHER CONSENT DECREES IN THE MEDICAL DEVICE FIELD IN RECENT YEARS HE SAID THE AGREEMENT WITH THE GRACE UNIT WHICH INCLUDES NO FINES OR PENALTIES IS EXTRAORDINARILY MILD HE ADDED AND WOULD APPEAR TO GIVE VERY CLEAR EVIDENCE THAT THE F. D. A. FEELS THE JOB OF BRINGING THINGS UP TO STANDARD IS VERY NEARLY COMPLETE MOST OF THE TEN DOMESTIC AUTO MAKERS FELL SHORT OF THEIR PRODUCTION ESTIMATES FOR LAST WEEK BECAUSE OF SEVERE WEATHER THROUGHOUT THE MIDWEST AND SOME SOUTHERN STATES THE AUTO MAKERS CITED PARTS SHORTAGES INSUFFICIENT ENERGY SUPPLIES AND LOW WORKER TURNOUT FOR CANCELING WORK SHIFTS AT VARIOUS ASSEMBLY PLANTS IN ADDITION MOST OF THE AUTO MAKERS WERE CLOSED MONDAY FOR THE MARTIN LUTHER KING HOLIDAY ALTOGETHER THE DOMESTIC AUTO MAKERS SAID THEY PLANNED TO BUILD TWO HUNDRED FIVE THOUSAND FIVE HUNDRED EIGHTY TWO CARS AND TRUCKS IN THE WEEK ENDED FRIDAY A DECREASE OF ONE POINT EIGHT PERCENT FROM THE TWO HUNDRED NINE THOUSAND THREE HUNDRED FORTY SIX VEHICLES BUILT A YEAR EARLIER COROLLA THE PASSION AROUSED BY ANY QUESTIONING OF THE STANDARD VERSION OF EVOLUTION NEVER CEASES TO AMAZE ME LETTERS TO THE EDITOR DECEMBER FIFTEENTH AND QUOTE A SCOPES TRIAL FOR THE NINETIES QUOTE EDITORIAL PAGE DECEMBER SIXTH EVOLUTION AS A SERIOUS SCIENTIFIC CONCEPT WAS INTRODUCED BY LAMARCK A HALF CENTURY BEFORE DARWIN'S ORIGIN OF THE SPECIES IT IS ACCEPTED BY MANY LEADING RELIGIOUS THINKERS WHO ALSO FIRMLY BELIEVE IN A CREATOR ALL THE FUSS BEGAN WITH THE INTRODUCTION OF NATURAL SELECTION AS THE MECHANISM OF EVOLUTION ALTHOUGH CREDIT FOR THIS CONCEPT USUALLY GOES TO DARWIN ALFRED RUSSELL WALLACE IS ACKNOWLEDGED AS A CO DISCOVERER RECENT RESEARCH INDICATES THAT WALLACE WAS IN FACT THE FIRST ONE TO EXPRESS THIS VIEW FOR PUBLICATION BUT THAT DARWIN CARRIED OUT SOME FANCY FOOTWORK TO GAIN PRIORITY FOR THE DISCOVERY EVERYONE AGREES THAT WIDE ACCEPTANCE OF NATURAL SELECTION CAME WITH DARWIN'S FAMOUS BOOK OF ONE THOUSAND EIGHT HUNDRED FIFTY NINE BUT WALLACE CONTINUED TO BE THE MOST CONSISTENT ADVOCATE OF NATURAL SELECTION THROUGH THE REST OF THE NINETEENTH CENTURY WHILE DARWIN WAS FLIRTING WITH LAMARCK'S INHERITANCE OF ACQUIRED CHARACTERISTICS THE POINT OF ALL THIS IS THAT WALLACE AFTER MUCH DELIBERATION REJECTED NATURAL SELECTION FOR THE ORIGIN OF MAN AND CONCLUDED THAT HUMANS COULD HAVE ARISEN ONLY THROUGH THE INTERVENTION OF WHAT HE CALLED A HIGHER INTELLIGENCE ON THIS SCORE I SUPPOSE WALLACE WOULD NOT HAVE BEEN ALLOWED TO TEACH A BASIC COURSE ON EVOLUTION AT SAN FRANCISCO STATE CAPITAL CITIES SLASH A. B. C. INCORPORATED WILL ANNOUNCE TODAY THAT IT HAS ACQUIRED A MINORITY STAKE IN ALPHA SOFTWARE CORPORATION IN EXCHANGE FOR ADVERTISING ALPHA'S PRODUCTS ON CAPITAL CITIES' NETWORK OF TELEVISION AND RADIO STATIONS NEWSPAPERS AND TRADE PUBLICATIONS THE AGREEMENT MARKS THE SECOND ADS FOR EQUITY SWAP BY CAPITAL CITIES LAST MARCH THE NEW YORK COMMUNICATIONS CONCERN TOOK AN EQUITY STAKE IN YES ENTERTAINMENT A MAKER OF ELECTRONIC TOYS BASED IN PLEASANTON CALIFORNIA CAPITAL CITIES SET UP A NEW UNIT CAPITAL CITIES CAPITAL TO INVEST IN EMERGING COMPANIES OFFERING CONSUMER PRODUCTS THAT COULD GROW QUICKLY THROUGH ADVERTISING ON THE A. B. C. NETWORK ALPHA SOFTWARE OF BURLINGTON MASSACHUSETTS IS A CLOSELY HELD MAKER OF DATABASE MANAGEMENT AND PRESENTATION GRAPHICS PROGRAMS FOR PERSONAL COMPUTERS IT WAS THE THIRD RANKING MAKER OF DATABASE SOFTWARE LAST YEAR BY UNITS SOLD AFTER BORLAND INTERNATIONAL INCORPORATED AND MICROSOFT CORPORATION ACCORDING TO JEFFREY TARTER PUBLISHER OF THE INDUSTRY MONTHLY SOFTLETTER ALPHA EXECUTIVES WOULDN'T DISCLOSE THE COMPANY'S LATEST SALES FIGURES BUT OTHERS IN THE SOFTWARE INDUSTRY ESTIMATE THAT ALPHA HAD SALES OF AT LEAST TWENTY FIVE MILLION DOLLARS IN NINETEEN NINETY THREE ALPHA'S GROWTH RATE SLOWED SOMEWHAT LAST YEAR ANALYSTS SAID AS THE MARKET SHIFTED AWAY FROM OLDER PROGRAMS BASED ON THE D. O. S. OPERATING SYSTEM SUCH AS ALPHA FOUR THE COMPANY'S FLAGSHIP PRODUCT TOWARD PROGRAMS THAT ARE DESIGNED TO WORK WITH MICROSOFT'S WINDOWS OPERATING SOFTWARE ALPHA IS WORKING ON A WINDOWS DATABASE WHICH IS EXPECTED TO BE SHIPPED TO CUSTOMERS THIS SUMMER IT WAS THIS NEW PRODUCT THAT APPARENTLY ATTRACTED CAPITAL CITIES' INTEREST A CAPITAL CITIES SPOKESMAN WOULDN'T SAY HOW MUCH HAD BEEN INVESTED BUT SAID QUOTE WITH THE COST OF NETWORK ADVERTISING TODAY IT'S GOT TO BE A VALUABLE DEAL QUOTE RICHARD RABINS CO CHAIRMAN OF ALPHA SAYS HE'S BETTING THAT SOFTWARE ADVERTISING IS READY FOR PRIME TIME THE AGE OF CONSUMER SOFTWARE MARKETING IS HERE HE SAYS THE NUMBER OF PEOPLE BUYING COMPUTERS TODAY HAS GOTTEN SO LARGE THAT YOU CAN'T REACH THEM SIMPLY BY BUYING ADVERTISING IN THE COMPUTER TRADE MAGAZINES ANYMORE FEDERATED DEPARTMENT STORES INCORPORATED SAID CHAIM Y. EDELSTEIN CHAIRMAN AND CHIEF EXECUTIVE OF ITS ABRAHAM AND STRAUS SLASH JORDAN MARSH DIVISION RESIGNED TO PURSUE OTHER INTERESTS MR. EDELSTEIN FIFTY ONE YEARS OLD WOULDN'T COMMENT BEYOND THE COMPANY'S NEWS RELEASE ABOUT HIS UNEXPECTED RESIGNATION HE HAD BEEN CHAIRMAN OF THE BROOKLYN N. Y. BASED ABRAHAM AND STRAUS UNIT SINCE NINETEEN EIGHTY FIVE FEDERATED SAID IT EXPECTS TO NAME A SUCCESSOR SHORTLY MR. EDELSTEIN HAD BEEN WITH A AND S. SINCE NINETEEN SEVENTY EIGHT IN NINETEEN NINETY TWO CINCINNATI BASED FEDERATED MERGED THE HEADQUARTERS OPERATIONS OF A AND S. AND THE BOSTON BASED JORDAN MARSH UNITS IN A SIGNIFICANT COST CUTTING EFFORT BOTH RETAILERS SERVE SIMILAR MIDDLE CLASS CUSTOMER BASES AT THE TIME MR. EDELSTEIN THEN CHAIRMAN AND CHIEF EXECUTIVE OF A AND S. WAS NAMED AS HEAD OF THE CONSOLIDATED CHAINS THE MOST RECENT SALES FIGURES FOR THE UNIT'S THIRTY FIVE STORES SHOW THAT IN THE YEAR ENDED JANUARY THIRTIETH NINETEEN NINETY THREE SALES TOTALED ONE POINT FOUR TWO BILLION DOLLARS THAT WAS A THREE PERCENT GAIN FROM A YEAR EARLIER WHEN SALES REACHED ONE POINT THREE EIGHT BILLION DOLLARS CLOSED END FUNDS SELL A LIMITED NUMBER OF SHARES AND INVEST THE PROCEEDS IN SECURITIES UNLIKE OPEN ENDED FUNDS CLOSED ENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C. CHICAGO N. NYSE O. NASDAQ T. TORONTO Z. DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY N. A. V. WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE N. A. V. OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES FIFTY TWO WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST TWELVE MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME. A THE N. A. V. AND MARKET PRICE ARE EX DIVIDEND B. THE N. A. V. IS FULLY DILUTED.C N. A. V. MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D. N. A. V. MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E. N. A. V. ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V. N. A. V. IS CONVERTED AT THE COMMERCIAL RAND RATE. Y. N. A. V. AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N. SLASH A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE THE SURPRISE DEFEAT OF POLITICAL REFORM IN JAPAN LAST WEEK HAS DEALT THE YEN ANOTHER SERIOUS BLOW STILL THE JAPANESE CURRENCY COULD GET SOME SUPPORT FROM THE U. S. GOVERNMENT'S CONTINUED EFFORTS TO USE IT AS A LEVER AGAINST JAPANESE PROTECTIONISM THE RESULT WILL BE THAT THE YEN FOR NOW REMAINS CAUGHT IN A TUG OF WAR TRADERS AND ANALYSTS SAY QUOTE THE ECONOMICS OF THE SITUATION MAY DRIVE IT DOWN BUT THE POLITICAL VOICES FROM WASHINGTON WILL TALK IT UP QUOTE SAYS DAVE ROSSMAN VICE PRESIDENT AT HARRIS TRUST AND SAVINGS BANK CHICAGO THE FAILED ATTEMPT BY PRIME MINISTER MORIHIRO HOSOKAWA TO PUSH POLITICAL REFORM BILLS THROUGH THE UPPER HOUSE OF PARLIAMENT CAUGHT MANY IN THE MARKET BY SURPRISE AND THE CROSSCURRENTS BEGAN TO SWIRL IN CURRENCY MARKETS IN TRADING FRIDAY TRADERS INITIALLY TOOK THE JAPANESE CURRENCY HIGHER BUT AS THE SESSION WORE ON THEY CHANGED THEIR MINDS AND THE DOLLAR REVERSED ITS LOSSES AGAINST THE YEN IN LATE NEW YORK TRADING THE DOLLAR WAS AT ONE HUNDRED ELEVEN POINT SIX OH YEN UP FROM ONE HUNDRED ELEVEN POINT OH SIX YEN A WEEK EARLIER AND ONE HUNDRED ELEVEN POINT FOUR OH YEN THURSDAY THE DOLLAR WAS AT ONE POINT SEVEN FIVE FOUR OH MARKS UP FROM ONE POINT SEVEN FOUR NINE FIVE A WEEK AGO AND ONE POINT SEVEN THREE EIGHT OH MARKS THURSDAY ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED TWELVE POINT ONE THREE YEN AND AT ONE POINT SEVEN FIVE TWO SIX MARKS DEFEAT OF POLITICAL REFORM MAKES IT HIGHLY UNLIKELY THAT JAPAN'S COALITION GOVERNMENT WILL BE ABLE TO IRON OUT ANY TIME SOON A COMPROMISE ON A STIMULUS PACKAGE OR BUDGET FOR THE COMING FISCAL YEAR BEGINNING APRIL FIRST ANALYSTS BELIEVE THE DIET'S CURRENT SESSION ENDS JANUARY TWENTY NINTH THIS MAY NOT BE A PERMANENT DEFEAT BUT IT CERTAINLY DELAYS THE WHOLE PROCESS OF MOVING TOWARD FISCAL STIMULUS AND THE GENERAL SENSE IS THAT THIS IS THE WAY OUT OF RECESSION SAYS KEVIN LOGAN CHIEF ECONOMIST WITH SWISS BANK CORPORATION MOREOVER THE DEFEAT OF THE REFORM PACKAGE WILL WEIGH HEAVILY UPON JAPAN'S NIKKEI STOCK INDEX FURTHER SAPPING THE CURRENCY'S STRENGTH SAYS MR. ROSSMAN MEANWHILE THE JAPANESE ECONOMY CONTINUES TO STRUGGLE FOR EXAMPLE THE BANK OF JAPAN LAST WEEK SAID IT SAW NO REASON TO BELIEVE WEAK LOAN DEMAND WOULD IMPROVE THAT IS THE KIND OF TALK THAT ONLY EXACERBATES TENSION OVER THE GROWING TRADE DEFICIT BETWEEN THE U. S. AND JAPAN WHICH WIDENED MORE THAN FIFTEEN PERCENT TO FIVE POINT THREE SIX BILLION DOLLARS IN DECEMBER THE UNLIKELIHOOD OF A STIMULUS TO FIX THE TROUBLED ECONOMY MEANS THAT JAPAN WILL CONTINUE TO BE PART OF TRADE SPEECHES BY CLINTON ADMINISTRATION OFFICIALS CURRENCY AND POLITICAL ANALYSTS SAY A STRONGER YEN WOULD DAMP THE FLOW OF JAPANESE EXPORTS TO THE U. S. BY MAKING THEM MORE EXPENSIVE HOWEVER THERE IS LESS DEMAND FOR U. S. PRODUCTS AS JAPAN'S ECONOMY CONTINUES TO LIMP ALONG THUS IT IS EXPECTED THAT THE U. S. WILL FURTHER PRESSURE JAPAN TO SOLVE ITS TRADE PROBLEMS WITH THE U. S. BY PUSHING UP THE YEN INDEED TREASURY SECRETARY LLOYD BENTSEN MET WITH JAPANESE FINANCE MINISTER HIROHISA FUJII AND MR. HOSOKAWA SUNDAY BENTSEN HAS BEEN PRETTY CRITICAL OF THE TRADE SITUATION SAYS RANDALL POSEJPAL VICE PRESIDENT OF FOREIGN EXCHANGE AT SAUL STONE AND COMPANY IN CHICAGO HE WAS REFERRING TO THE CONTINUING FRAMEWORK TALKS BETWEEN THE TWO COUNTRIES THAT REACHED AN IMPASSE BECAUSE OF U. S. DEMANDS THAT TRADE RESTRICTIONS BE LOOSENED AND MORE IMPORTS ALLOWED INTO JAPAN USUALLY WITH THESE MEETINGS EVERYONE EXPECTS MORE THAN WHAT COMES OUT OF THEM MR. POSEJPAL SAYS STILL MORE TOUGH TALK FROM MR. BENTSEN WAS EXPECTED TO PUT A BUFFER UNDERNEATH THE YEN TRADERS AND ANALYSTS THINK KEEPING IT FROM FALLING TOO FAR EVEN THOUGH THERE AREN'T ANY DOMESTIC SUPPORTS FOR THE YEN MR. BENTSEN RECEIVED NO SPECIFIC PROMISES SUNDAY BUT SAID MR. HOSOKAWA TOLD HIM THAT WE WANT TO BRING THIS TO A SUCCESSFUL CONCLUSION INCREASED CONCERN ABOUT DRINKING WATER QUALITY IS CREATING A FLOOD OF DEMAND FOR CHEAP AND SIMPLE FILTRATION DEVICES WHILE ONE OF THE MOST POPULAR IS MADE BY BRITA U. S. A. A UNIT OF BIG CONSUMER PRODUCTS MAKER CLOROX SMALL MANUFACTURERS DOMINATE THE INDUSTRY MANY EXPECT SALES TO SKYROCKET IN NINETEEN NINETY FOUR BUILDING ON LAST YEAR'S STRONG GROWTH ABOUT FIFTEEN PERCENT OF U. S. HOUSEHOLDS USE THE DEVICES UP FROM FOUR PERCENT IN NINETEEN NINETY TWO ACCORDING TO THE HOME WATER REPORT A NEWSLETTER IN CHINCOTEAGUE ISLAND VIRGINIA INNOVA PURE WATER IN CLEARWATER FLORIDA ANTICIPATES SALES OF ABOUT THREE MILLION DOLLARS FOR THE FISCAL YEAR ENDING JUNE THIRTIETH UP FROM NINE HUNDRED THOUSAND DOLLARS LAST YEAR INNOVA MAKES A SMALL CARAFE THAT FILTERS TAP WATER FOR A SUGGESTED RETAIL PRICE OF SIX DOLLARS QUOTE CONSUMERS ARE REALIZING THERE ARE ALTERNATIVES TO BOTTLED WATER AND FILTERED WATER SYSTEMS ARE BECOMING MUCH MORE POPULAR QUOTE SAYS JOSEPH NOHREN INNOVA'S EXECUTIVE VICE PRESIDENT THE DEVICES ALSO ARE A GROWING PRODUCT CATEGORY FOR POLLENEX SAYS PHIL GYORI A SPOKESMAN FOR THE KANSAS CITY MISSOURI MAKER OF FAUCET FILTERS EVERYBODY'S BEEN SCRATCHING THEIR HEADS FOR A LONG TIME SAYING THIS SHOULD BE BIG NOW IT'S FINALLY STARTING TO PICK UP SPEED MR. GYORI SAYS SALES OF POLLENEX'S TWENTY FIVE DOLLARS FILTERS ROSE THIRTY PERCENT LAST YEAR THE PRIVATELY HELD COMPANY WHICH DECLINES TO DISCLOSE FIGURES EXPECTS STRONGER GROWTH THIS YEAR HE ADDS CALDERA ENVIRONMENTAL A CHICAGO FILTER MAKER SAYS NINETEEN NINETY THREE FILTER SALES AT ITS STERLING AIR AND WATER UNIT ROSE TO FOUR POINT FIVE MILLION DOLLARS FROM ONE MILLION DOLLARS IN NINETEEN NINETY TWO CALDERA OFFICIALS THINK TASTES WILL BECOME MORE SOPHISTICATED OVER THE NEXT FEW YEARS WE'RE HOPING THAT AS CONSUMERS BECOME MORE COMFORTABLE WITH SIMPLER FILTRATION SYSTEMS THEY'LL THINK ABOUT USING MORE ELABORATE SYSTEMS FOR THE ENTIRE HOME SAYS DAWN VAN ZANT A SPOKESWOMAN ENTREPRENEURS COMPLAIN THAT INCREASED TELEMARKETING ABUSES MAKE IT HARDER FOR LEGITIMATE CATALOG START UPS TO GET MERCHANT ACCOUNTS FROM COMPANIES THAT ISSUE OR PROCESS CREDIT CARDS THERE IS A LOT OF TRUTH TO THAT SAYS JOHN ELLIOT CHIEF EXECUTIVE OFFICER OF CARD ESTABLISHMENT SERVICES A BIG CREDIT CARD PROCESSOR IN MELVILLE N. Y. BUT THE PROBLEM WITH MAIL ORDER IS THAT WE'RE EFFECTIVELY ASKED TO GIVE THE MERCHANT THE MONEY WITHOUT SEEING WHETHER THE CUSTOMERS GET THE GOODS OWNERS OF SMALL CATALOG COMPANIES SAY CREDIT CARD COMPANIES HAVE BECOME TOO DEFENSIVE QUOTE YOU WOULD THINK WE WERE IN THE BUSINESS OF TRUCKING NITROGLYCERINE ACROSS THE TRANS ALASKA HIGHWAY GIVEN HOW AFRAID OF US THEY WERE QUOTE SAYS DANIEL ROTHMEL FOUNDER OF GOLDEN CALIFORNIA CATALOG IN LOS ANGELES THOUGH THE STATE IS A PARTNER AND INVESTOR IN THE COMPANY MR. ROTHMEL SAYS HE TRIED FOR SEVERAL MONTHS TO GET A CREDIT CARD ACCOUNT BEFORE LAUNCHING HIS CATALOG BUSINESS THREE MONTHS AGO IT SELLS GIFTS AND SOUVENIR ITEMS WITH A CALIFORNIA THEME MR. ROTHMEL FINALLY LANDED AN ACCOUNT WITH LITLE AND COMPANY A SALEM N. H. PROCESSOR SPECIALIZING IN CATALOG FIRMS AND DIRECT MAIL START UPS OTHER ENTREPRENEURS SAY ESTABLISHING AN ACCOUNT CAN BE UNNECESSARILY DIFFICULT CREDIT CARD COMPANIES ALL TOLD ME THAT IF YOU'RE A NEW MAIL ORDER BUSINESS WE DON'T WANT TO TALK TO YOU SAYS JEAN HILL OWNER OF AMARA KOSHER MEATS IN NEW YORK MS. HILL WHO STARTED HER MAIL ORDER FOOD COMPANY A YEAR AGO SAYS SHE SPENT THREE YEARS LOOKING FOR A COMPANY BEFORE A CONSULTANT STEERED HER TOWARD LITLE THESE CREDIT CARD COMPANIES JUST WANT TO REAP THE BENEFITS OF FEES BUT DON'T TAKE THE RISK OF HELPING A SMALL BUSINESS GET STARTED SHE ADDS LITLE AND DMGT IN NASHUA N. H. WHICH ALSO HANDLES SMALL CATALOG ACCOUNTS SAY A START UP GETS THE ACCOUNTS FASTER WHEN IT CAN PROVIDE A WELL DEVELOPED BUSINESS PLAN AND HAS STRONG FINANCIAL BACKING AND MANAGEMENT EXPERIENCE SMALL BUSINESSES ARE GETTING MORE ADVICE ON NEGOTIATING THE CONFUSING WORLD OF OUTSOURCING WITH BIG CORPORATIONS INCREASINGLY CONTRACTING OUT EVERYTHING FROM DATA PROCESSING TO JANITORIAL WORK OUTSOURCING ARRANGEMENTS CAN BECOME THORNY FOR SMALL VENDORS OUTSOURCING PROGRAMS ARE THROWN TOGETHER HAPHAZARDLY AND MANY OF THE SMALL BUSINESSES THAT BECOME INVOLVED WITH THEM GET BURNED SAYS JOSEPH BISSETT PRESIDENT OF CONSERVE A WAYNE PENNSYLVANIA COMPANY THAT BROKERS ARRANGEMENTS BETWEEN SMALL AND LARGE COMPANIES SMALL CONCERNS OFTEN DON'T GET ADEQUATE SUPPORT FROM THE LARGER COMPANIES AND TERMS OF DEALS OFTEN ARE CLOUDY HE ADDS MR. BISSETT SAYS CONSERV'S BUSINESS HAS GROWN DRAMATICALLY OVER THE LAST SIX MONTHS BECAUSE MORE SMALL BUSINESSES HAVE HAD PROBLEMS FINDING SATISFACTORY OUTSOURCING CONTRACTS HE SAYS SMALL COMPANIES SHOULD MAKE SURE CONTRACTS ARE EXCLUSIVE ARE LONGER THAN A YEAR AND HAVE WELL DEFINED COMMISSION OR PAYMENT TERMS OTHERS ALSO ARE MAKING A BIGGER PUSH TO ASSIST SMALL FIRMS COOPERS AND LYBRAND THE LARGE NEW YORK CONSULTING GROUP HAS BROKERED OUTSOURCING ARRANGEMENTS BETWEEN BIG AND SMALL CONCERNS FOR THE PAST EIGHTEEN MONTHS AND IN APRIL THE NONPROFIT OUTSOURCING INSTITUTE OPENED IN NEW YORK IN RESPONSE TO WHAT IT SAYS WAS FRUSTRATION AMONG CORPORATE MANAGERS SEEKING MORE OUTSOURCING VENDORS OF ALL SIZES THE INSTITUTE CHARGES VENDORS TWO THOUSAND TWO HUNDRED DOLLARS A YEAR FOR A LISTING IN AN OUTSOURCING GUIDE A NEWSLETTER AND SEMINAR DISCOUNTS COMPANIES WITH REVENUE OF ONE HUNDRED MILLION DOLLARS OR LESS PAID THEIR C. E. O.S AN AVERAGE SALARY OF ONE HUNDRED FORTY THREE THOUSAND NINE HUNDRED DOLLARS LAST YEAR ONLY THREE POINT THREE PERCENT MORE THAN NINETEEN NINETY TWO ACCORDING TO A RECENT SURVEY OF SEVEN HUNDRED THIRTY FIVE SUCH FIRMS BY CONSULTANTS ERNST AND YOUNG IN NEW YORK ALL IN THE FAMILY ABOUT TWENTY FOUR PERCENT OF THE OWNERS OF FAMILY OWNED ENTERPRISES DO NOT WANT TO TRANSFER THE BUSINESS TO A RELATIVE ACCORDING TO A RECENT SURVEY BY THE GALLUP ORGANIZATION BORROR CORPORATION AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA MCDONALD AND COMPANY SECURITIES INCORPORATED AND OHIO COMPANY DIGITAL EQUIPMENT CORPORATION A SHELF REGISTRATION OF ONE BILLION DOLLARS IN SECURITIES INCLUDING SENIOR AND SUBORDINATED DEBT PREFERRED STOCK DEPOSITARY SHARES AND WARRANTS TO PURCHASE EQUITY OR DEBT SECURITIES FIRST U. S. A. INCORPORATED AN OFFERING OF FIVE MILLION MANDATORY CONVERTIBLE PREFERRED SHARES VIA MERRILL LYNCH AND GOLDMAN SACHS AND COMPANY AND A SEPARATE OFFERING OF FIVE MILLION COMMON SHARES VIA MERRILL LYNCH ALEXANDER BROWN AND SONS INCORPORATED GOLDMAN SACHS AND KIDDER PEABODY AND COMPANY GBC TECHNOLOGIES INCORPORATED AN OFFERING OF TWO POINT NINE MILLION COMMON SHARES VIA RAYMOND JAMES AND ASSOCIATES INCORPORATED AND FOLEY MUFSON HOWE AND COMPANY ICELAND AN OFFERING OF UP TO TWO HUNDRED MILLION DOLLARS OF NOTES VIA J. P. MORGAN SECURITIES INCORPORATED CITICORP SECURITIES INCORPORATED GOLDMAN SACHS AND COMPANY AND MERRILL LYNCH AND COMPANY MIDWESCO FILTER RESOURCES INCORPORATED AN OFFERING OF ONE POINT TWO MILLION COMMON SHARES VIA CHICAGO CORPORATION PROPHET TWENTY ONE INCORPORATED AN OFFERING OF ONE POINT FIVE MILLION COMMON SHARES VIA WILLIAM BLAIR AND COMPANY SPARTA PHARMACEUTICALS INCORPORATED AN INITIAL OFFERING OF UP TO ONE MILLION EIGHT HUNDRED FORTY THOUSAND COMMON SHARES AT SEVEN DOLLARS TO EIGHT DOLLARS A SHARE VIA RAS SECURITIES CORPORATION THERATECH INCORPORATED AN OFFERING OF TWO HUNDRED SEVEN THOUSAND FIVE HUNDRED COMMON SHARES VIA WILLIAM BLAIR AND COMPANY KIDDER PEABODY AND COMPANY AND VECTOR SECURITIES INTERNATIONAL INCORPORATED THREE FIVE SYSTEMS INCORPORATED AN OFFERING OF ABOUT ONE POINT ONE MILLION COMMON SHARES TRANS OCEAN CONTAINER CORPORATION SAN BRUNO CALIFORNIA AN OFFERING OF UP TO SEVENTY FIVE MILLION DOLLARS OF SENIOR SUBORDINATED NOTES DUE TWO THOUSAND FOUR VIA MERRILL LYNCH AND COMPANY AND BEAR STEARNS AND COMPANY IN HIS DECEMBER TWENTY NINTH LETTER RESPONDING TO YOUR DECEMBER THIRD ARTICLE QUOTE PLAN TO BAR NONLAWYER ADVISERS IN INVESTOR DISPUTES DEBATED QUOTE PAUL N. YOUNG IGNORES LEGITIMATE CONCERNS RAISED BY THOSE WHO OPPOSE NONLAWYER ADVISERS IN SECURITIES ARBITRATION AND INSTEAD FRAMES THE DEBATE AS A QUOTE RECENT PHENOMENON QUOTE PITTING QUOTE GREEDY AND SELF INTERESTED QUOTE ATTORNEYS AND STOCKBROKERS AGAINST THE PUBLIC THIS IS UNFAIR AND A DISSERVICE TO THE INDIVIDUAL INVESTOR THE MATTER IS SERIOUS AND WAS EXPLORED YEARS AGO WHEN I WAS A MEMBER OF THE N. A. S. D.'S BROAD BASED NATIONAL ARBITRATION COMMITTEE THE REAL ISSUES HERE ARE DISCLOSURE ACCOUNTABILITY AND EXPERTISE ATTORNEYS AND STOCKBROKERS ARE LICENSED AND SUBJECT TO EXTENSIVE REGULATION AND HIGH ETHICAL AND OTHER STANDARDS THOSE WHO STRAY FROM THESE STANDARDS ARE ACCOUNTABLE IN MANY WAYS INCLUDING DISCIPLINARY PROCEEDINGS LITIGATION AND ARBITRATION NONE OF THESE SAFEGUARDS ARE AVAILABLE TO INVESTORS DEALING WITH UNREGULATED ARBITRATION ADVISERS EVEN THOSE ADVISERS WITH LIMITED INVESTMENT PRODUCT OR OTHER EXPERTISE ARE NOT LICENSED OR QUALIFIED TO PRACTICE LAW AND THEIR PROPER ROLE IS AS AN EXPERT WITNESS UNDER THE GUIDANCE OF AN EXPERIENCED TRIAL ATTORNEY I QUESTION THE DISCLOSURES INVESTORS RECEIVE IN LIGHT OF OCCASIONS WHERE SOME ADVISERS WERE FOUND TO BE DISBARRED ATTORNEYS OR STOCKBROKERS FORCED OUT OF THE BUSINESS DUE TO REGULATORY PROBLEMS AS THE ATTORNEY WHO SUCCESSFULLY ARGUED TWO OF THE LEADING SUPREME COURT CASES IN THE AREA OF SECURITIES ARBITRATION SHEARSON V. MCMAHON AND RODRIGUEZ V. SHEARSON AND AS ONE WHOSE PRACTICE SPECIALIZES IN THIS AREA I SHARE THE CONCERNS OF PUBLIC REGULATORY AND INDUSTRY PROFESSIONALS ABOUT THE USE OF THESE ADVISERS IN ARBITRATION FORUMS STRIVING TO MAINTAIN THE HIGHEST PROFESSIONAL STANDARDS AND PRESERVE PUBLIC CONFIDENCE LEE ENTERPRISES INCORPORATED CITING STRENGTHENED ADVERTISING AT ITS NEWSPAPER AND BROADCAST HOLDINGS SAID EARNINGS IN ITS FISCAL FIRST QUARTER ROSE SIXTEEN PERCENT ON A SIX PERCENT RISE IN REVENUE FOR THE QUARTER ENDED DECEMBER THIRTY FIRST THE DAVENPORT IOWA MEDIA CONCERN REPORTED NET INCOME OF THIRTEEN POINT THREE MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE UP FROM THE YEAR BEFORE ELEVEN POINT FIVE MILLION DOLLARS OR FORTY NINE CENTS A SHARE REVENUE ROSE TO ONE HUNDRED TWO POINT ONE MILLION DOLLARS FROM NINETY SIX POINT THREE MILLION DOLLARS THE COMPANY OWNS EIGHT TELEVISION STATIONS NINETEEN DAILY NEWSPAPERS AND A STABLE OF WEEKLY OR SPECIALTY PAPERS PRIMARILY IN SMALLER CITIES AND TOWNS LEE SAID CLASSIFIED ADVERTISING INCREASED ELEVEN PERCENT FROM THE YEAR EARLIER PERIOD REFLECTING QUOTE STRENGTH IN THE AUTOMOTIVE AND REAL ESTATE SEGMENTS AND MORE ADVERTISING BY INDIVIDUAL CUSTOMERS QUOTE OVERALL NEWSPAPER ADVERTISING REVENUE GREW THREE POINT SEVEN PERCENT BROADCASTING REVENUE ROSE TWO PERCENT SANDOZ A. G. SAID IT EXPECTS TO REPORT NINETEEN NINETY THREE GROUP NET INCOME INCREASED QUOTE MORE THAN TEN PERCENT QUOTE FROM NINETEEN NINETY TWO BECAUSE OF HIGHER OPERATING PROFIT AND TIGHT COST CONTROLS THE SWISS CHEMICAL AND PHARMACEUTICALS COMPANY WITH LARGE U. S. OPERATIONS ALSO SAID GROUP SALES CLIMBED FIVE PERCENT TO FIFTEEN POINT ONE BILLION SWISS FRANCS TEN POINT THREE FOUR BILLION DOLLARS FROM FOURTEEN POINT FOUR TWO BILLION FRANCS IT ATTRIBUTED THE SALES GROWTH TO THE INCREASING DYNAMISM OF PHARMA SALES AND THE ABOVE AVERAGE PERFORMANCE OF THE CORE SECTOR CHEMICALS AND ENVIRONMENT SANDOZ SAID ITS LIFE SCIENCES DIVISIONWHICH INCLUDES PHARMACEUTICALS NUTRITION PRODUCTS AND SEEDS POSTED SALES GROWTH OF FOUR PERCENT TO TEN POINT OH FIVE ONE BILLION FRANCS FROM NINE POINT SIX THREE SEVEN BILLION FRANCS THE CHEMICALS AND ENVIRONMENT DIVISION MEANWHILE WHICH INCLUDES INDUSTRIAL CHEMICALS AGROCHEMICALS AND CONSTRUCTION AND ENVIRONMENTAL CHEMICALS HAD SALES GROWTH OF SIX PERCENT TO FIVE POINT OH FOUR NINE BILLION FRANCS FROM FOUR POINT SEVEN SEVEN NINE BILLION FRANCS PHARMACEUTICALS SALES CLIMBED SEVEN PERCENT TO SEVEN POINT THREE FOUR EIGHT BILLION FRANCS FROM SIX POINT EIGHT SEVEN BILLION FRANCS WITH THE PACE OF SALES GROWTH RISING TO TEN PERCENT IN THE FOURTH QUARTER AMONG NINETEEN NINETY THREE'S BEST SELLING PHARMACEUTICALS PRODUCTS SANDIMMUN SALES WERE UP FIFTEEN PERCENT CLOZARIL SLASH LEPONEX UP SIXTY PERCENT SANDOSTATIN UP FIFTEEN PERCENT AND DYNACIRC SLASH LOMIR UP FORTY THREE PERCENT SANDOZ SAID SALES GROWTH IN THESE PRODUCTS ARE A CLEAR DEMONSTRATION THAT THE RESEARCH EFFORTS OF YESTERDAY ARE THE BASIS FOR TODAY'S SUCCESS THE COMPANY SAID ELSEWHERE IN THE LIFE SCIENCES DIVISION SALES IN THE NUTRITION SECTOR WERE DOWN ONE PERCENT TO ONE POINT SEVEN TWO TWO BILLION FRANCS FROM ONE POINT SEVEN FOUR SIX BILLION FRANCS THE COMPANY ATTRIBUTED MUCH OF THE DECLINE TO THE WEAKNESS OF THE SWEDISH KRONA AGAINST THE SWISS FRANC EXCLUDING CURRENCY FACTORS NUTRITION SALES WERE UP FOUR PERCENT SALES IN THE SEEDS SECTOR MEANWHILE FELL FOUR PERCENT TO NINE HUNDRED EIGHTY ONE MILLION FRANCS FROM ONE POINT OH TWO ONE BILLION FRANCS LARGELY REFLECTING THE DIVESTITURE OF ACTIVITIES WITH LITTLE ADDED VALUE SANDOZ SAID WITH RED AND GREEN SPOTLIGHTS TWIRLING AND A STROBE LIGHT PULSATING JOURNEY A LOCAL ROCK BAND LAUNCHES INTO AN OLD CHUCK BERRY FAVORITE THE CROWD A BLUR OF BLUEJEANS MINISKIRTS AND SWEAT SHIRTS DANCES IN THE AISLES AND SINGS ALONG WITH VOCALIST BASEL HAG YOUSEFF QUOTE JUST LET ME HEAR SOME OF THAT ROCK AND ROLL MUSIC IF YOU WANT TO DANCE WITH ME QUOTE ROCK A DESPISED SYMBOL OF WESTERN DECADENCE IN NEIGHBORING CAPITALS OF TEHRAN AND BAGHDAD THROBS HAPPILY UNDER THE AUTHORITARIAN RULE OF SYRIA'S HAFEZ AL ASSAD OF COURSE ROCKING AND ROLLING HERE ISN'T EASY THE MUSIC IS STRICTLY APOLITICAL CRITICIZING THE GOVERNMENT CAN LAND YOU IN PRISON NOR IS DISCO DAMASCUS HEAVY ON GLAMOUR AND GLITZ ROCK STARS OFTEN PUT UP THEIR OWN POSTERS AND SUPPLEMENT THEIR MUSICAL CAREERS WITH OTHER PURSUITS LIKE PRACTICING DENTISTRY STILL THE MUSIC BLARES OVER STATE OWNED AIRWAVES IN THIS CRADLE OF ARAB NATIONALISM AND ELVIS IS THE KING AND THEN THERE IS SALLY AL SHREIKH THE TWENTY ONE YEAR OLD BASS GUITAR PLAYER WHOSE BLACK NAIL POLISH MATCHES HER LONG HAIR HAD MEMBERS OF THE AUDIENCE DIVING ONTO THE STAGE LAST OCTOBER IN HER DEBUT AT THE RUSSIAN CULTURE CENTER HERE HER HEAVY METAL GROUP MORE GUTS PLAYS HITS BY SUCH WESTERN MUSICIANS AS NIRVANA OZZY OSBORNE AND METALICA MS. AL SHREIKH SAYS THE OLDER GENERATION LOATHES THE HARSH SOUNDS OF HEAVY METAL BUT HER PARENTS HAVE BEEN SUPPORTIVE OF HER BUDDING CAREER HER MOTHER A PIANIST ONCE TOLD HER THIS IS YOUR LIFE DO WHATEVER YOU WANT MS. AL SHREIKH ENJOYS A MEASURE OF CELEBRITY DRAWING STARES AT DAMASCUS UNIVERSITY WHERE SHE IS AN ENGLISH LITERATURE MAJOR BUT FAME HAS ITS PRICE SOME OF MY FRIENDS AND ALL MY TEACHERS DIDN'T AGREE WITH MY BEING IN A HEAVY METAL BAND SHE SAYS THEY SAID PEOPLE WOULD SAY I'M NOT A GOOD GIRL EVEN WITH GOVERNMENT APPROVAL ROCKERS DON'T SHARE IN THE ADULATION AND WEALTH ENJOYED BY WESTERN STARS JOURNEY NOT TO BE CONFUSED WITH A GROUP ONCE POPULAR IN THE U. S. EARNS ONLY ABOUT TWO HUNDRED DOLLARS A CONCERT WHILE A GOOD SET OF DRUMS CAN COST THREE THOUSAND DOLLARS HERE SO MUSICIANS REGULARLY BORROW INSTRUMENTS FROM ONE ANOTHER FOR CONCERTS AND SOME BAND MEMBERS WORK OTHER JOBS OR MAKE ENDS MEET BY GIVING PRIVATE MUSIC LESSONS AND WITHOUT ROADIES AN AGENT OR AN ADVANCE TEAM BAND MEMBERS HAVE TO ARRANGE THEIR OWN BOOKINGS FIND REHEARSAL HALLS AND SET UP THEIR OWN EQUIPMENT BY NOW MUSICIANS ARE RESIGNED TO SELF CENSORSHIP WE CANNOT SAY ANYTHING POLITICAL IN OUR MUSIC SAYS SAMER AKBIK A THIN GUITARIST WITH A WISPY BEARD WHO PLAYS IN MS. AL SHREIKH'S GROUP WE'RE RAISED ON NOT TALKING POLITICS STILL MS. AL SHREIKH WHO LEARNED TO PLAY GUITAR FROM AN EX BOYFRIEND GLORIES IN HER SELF PROCLAIMED ROLE AS THE ONLY FEMALE HEAVY METAL ROCKER IN THE ARAB WORLD AS SHE SPEAKS SITTING AT A SIDEWALK CAFE TWO WOMEN WALK BY WEARING TRADITIONAL MUSLIM VEILS SHE GLANCES AT THEM BLOWS CIGARETTE SMOKE IN THEIR DIRECTION AND LAUGHS QUOTE I WANT TO MAKE A BAND FULL OF GIRLS QUOTE SHE SAYS THE FATHERS OF MODERN SYRIAN ROCK ARE A GROUP CALLED ROCKESTRA WHICH PIONEERED THE USE OF LIGHTS SMOKE MACHINES AND THOUSAND WATT SPEAKERS TO STAGE THE FIRST MASS CONCERT HERE IN NINETEEN EIGHTY FOUR AT THE MERIDIEN HOTEL ONE FAN IN THE AUDIENCE THAT NIGHT WAS AMMAR ALANI NOW A DENTIST WHO PLAYS THE ELECTRIC KEYBOARD FOR JOURNEY FOR A FOURTEEN YEAR OLD STUDYING CLASSICAL PIANO THE EVENT WAS AN EPIPHANY I WAS EXPECTING MUSIC BUT WHAT I FOUND WAS PEOPLE HAVING FUN HE RECALLS AFTER THAT DAY PEOPLE KNEW THERE WAS SOMETHING CALLED ROCK CONCERTS WHERE YOU GET CRAZY AND DANCE THE GET CRAZY CONCERTS GO ALONG WITH A SOMEWHAT LOOSER CULTURAL CLIMATE IN SYRIA PARTICULARLY FOR THE CHILDREN OF THE ELITE AND MIDDLE CLASS FROM WHOSE RANKS MOST ROCKERS SEEM TO COME HALLAH AL FAYSAL AN ARTIST SHOCKED SOME WITH AN EXHIBITION THAT INCLUDED SEVERAL NUDE SELF PORTRAITS FREE EXPRESSION ALSO BURSTS FORTH ON A DAMASCUS RADIO SHOW ON WHICH CALLERS VENT THEIR ANGER ABOUT STEEPLY RISING PRICES THOUGH NUDES AND CALL IN COMPLAINING ARE RECENT PHENOMENA ROCK'S ROOTS GO DEEPER IN THE EARLY NINETEEN SIXTIES A FEW BANDS WITH NAMES LIKE DYNAMITE AND THE BLUEBATS BRIEFLY HAD SMALL LOCAL FOLLOWINGS THEN THE BLUEBATS FLEW TO NORWAY ON TOUR AND NEVER CAME BACK IN NINETEEN SIXTY EIGHT JOHNNY KOMIVES A HUNGARIAN SYRIAN DRUMMER STARTED A ROCK BAND CALLED THE TIGERS HE SAYS HE LEARNED HIS ROCK MUSIC BY DRIVING TWO HOURS ACROSS THE MOUNTAINS TO BEIRUT WHERE THE CLUBS WERE PLAYING SONGS BY BILL HALEY AND THE COMETS THE BEATLES AND ELVIS PRESLEY AT FIRST THE TIGERS ROARED AT LOCAL HIGH SCHOOLS WE ALL TRIED TO IMITATE PRESLEY HE SAYS THESE DAYS THE FORTY FOUR YEAR OLD MR. KOMIVES'S ONCE SHOULDER LENGTH HAIR IS CLOSE CROPPED AND THINNING AND THE BAND EARNS UP TO TWO THOUSAND DOLLARS A GIG PLAYING WHAT HE CALLS MODERNIZED ARAB MUSIC AT WEDDINGS ANNIVERSARIES AND OTHER SOCIAL OCCASIONS AND THE BEAT GOES ON A HUGE SUPPLY OF AUDIO TAPE CASSETTES AVAILABLE IN DAMASCUS GIVES SYRIA'S BUDDING ROCK MUSICIANS AMPLE OPPORTUNITY TO LEARN IMPORTED ROCK NEARLY ALL THE TAPES ARE MASS PRODUCED HERE WITH LITTLE CONCERN FOR COPYRIGHT LAWS A DOWNTOWN MUSIC STORE NAI IS BRIMMING WITH FIVE THOUSAND DIFFERENT TITLES FROM BOB DYLAN TO MEATLOAF ALL THE TAPES ON THE SHELVES LOOK THE SAME BLUE AND WHITE PACKAGES WITH A PICTURE OF A GOLD COMPACT DISK THEY ALL ARE REPRODUCED FROM C. D.S BOUGHT IN THE WEST SATURDAY NIGHTS AT EIGHT FIFTEEN T. V. VIEWERS CAN WATCH LETTERS AND SONGS WHICH PLAYS REQUESTED HITS KHALAD SARAN WHO RUNS THE PROGRAM GETS TWO HUNDRED TO FIVE HUNDRED LETTERS EACH WEEK ABOUT A FOURTH OF THE REQUESTS ARE FOR ROCK HE SAYS INCLUDING SUCH FAVORITE ARTISTS AS GUNS 'N ROSES IRON MAIDEN AND ELTON JOHN BY AMERICAN STANDARDS THE SYRIAN ROCK SCENE IS TAME THE CROWDS ARE MUCH SMALLER AND THERE ARE VIRTUALLY NO DRUGS BEER FLOWS FREELY MOST OF THE MUSICIANS ARE AMATEURS MOSTLY THEY PLAY BECAUSE THEY LOVE THE MUSIC FOR AKRAM A COLLEGE DROPOUT AND GUITAR PLAYER THE MUSIC IS EVERYTHING HE DOESN'T WANT ANY OTHER KIND OF JOB AND DOESN'T CARE THAT WHEN HE WALKS DOWN THE STREET HE IS TAUNTED ABOUT HIS PONYTAIL HE DREAMS OF EMIGRATING TO THE WEST THE SOURCE OF THE SOUNDS HE LOVES INDEED AKRAM WITH HIS BIG BROWN MOURNFUL EYES IS A SIXTIES FLOWER CHILD STUCK IN DAMASCUS HARBORING UNCONVENTIONAL THOUGHTS IF YOU SHARE MUSICAL THOUGHTS WITH ME I DON'T CARE IF YOU'RE FROM MARS HE SAYS QUOTE WHO CARES IF YOU'RE ISRAELI YOU'RE A HUMAN BEING YOU CAN FEEL YOU CAN GET HURT I CAN PUT THAT TOGETHER MAYBE IF YOU CAN TOO SOME KIND OF PEACE WILL HAPPEN IT'S BEEN SOME COUPLE OF WEEKS IN SPORTS THE BIG TIME COLLEGE MEN'S BASKETBALL COACHES TALKED STRIKE OVER THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION'S REFUSAL TO RESTORE A FOURTEENTH SCHOLARSHIP PROBABLY MARKING THE FIRST TIME TEACHERS EVER AIMED SUCH AN ACTION AT GETTING LARGER CLASS SIZES MICHAEL JORDAN SAID HE WANTS TO MAKE A SPORTS COMEBACK IN MAJOR LEAGUE BASEBALL AND IT TOOK AN EARTHQUAKE TO KNOCK THE TONYA HARDING QUOTE SKATEGATE QUOTE SCANDAL OFF PAGE ONE WHAT'S GOING ON HERE I'M NOT SURE I KNOW IN FACT I'M SURE THERE ARE A LOT OF THINGS I DON'T KNOW ABOUT THESE CASES BUT THERE ARE A FEW THINGS I DO KNOW AND I'M HAPPY TO SHARE THEM WITH YOU WHEN EVALUATING L'AFFAIRE JORDAN ONE SHOULD KEEP IN MIND THE NUMBERS EIGHTY FIVE AND EIGHTY ONE THOSE WERE THE EIGHTEEN HOLE SCORES HE POSTED IN THE NINETEEN NINETY ONE WESTERN AMATEUR HIS FIRST AND SO FAR AS I KNOW LAST VENTURE INTO HONEST TO GOSH TOURNAMENT GOLF YOU MAY RECALL THAT THROUGHOUT HIS PROFESSIONAL BASKETBALL CAREER JORDAN'S SECOND SPORTING LOVE WAS GOLF NOT BASEBALL DURING THE SEASON HE'D TRAVEL WITH HIS GOLF CLUBS ON THE CHANCE THAT AN OCCASION TO PLAY THE GAME MIGHT ARISE AND IT WAS TO THE LINKS NOT THE DIAMOND THAT HE'D INSTANTLY REPAIR ONCE HIS COURTLY LABORS ENDED EACH JUNE UNDER THE PERSONAL SECTION OF HIS PAGE IN LAST SEASON'S CHICAGO BULLS MEDIA GUIDE HE SAID THAT ONCE HIS HOOPS DAYS WERE DONE HE'D LIKE TO TRY HIS HAND ON THE P. G. A. TOUR THIS SPLENDID ATHLETE LOVED THE GAME AND PRACTICED DILIGENTLY BY MOST ACCOUNTS HE BECAME QUITE GOOD AT IT SOMETIMES SCORING IN THE MID SEVENTIES DURING ROUNDS WITH HIS PALS MANY TOOK HIS GOLF PRO TALK SERIOUSLY WHICH WAS WHY HIS ENTRY INTO THE MEDAL PLAY NINETY ONE WESTERN AMATEUR ON THE FORMIDABLE POINT O'WOODS COURSE IN BENTON HARBOR MICHIGAN WAS WIDELY NOTED ALAS HIS SCORES THERE PLACED HIM ONE HUNDRED SIXTY THIRD IN THE FIELD OF ONE HUNDRED SIXTY FIVE AND HE MISSED THE THIRTY SIX HOLE CUT BY SIXTEEN STROKES THE EPISODE CAME TO MIND WHEN IN THEIR ENDLESS DISCUSSIONS OF JORDAN'S BASEBALL PLANS CHICAGO T. V. STATIONS RAN VIDEOTAPES OF HIM HITTING BALLS THAT BARELY CLEARED THE LEFT FIELD FENCE IN COMISKEY PARK DURING A SUMMER BATTING PRACTICE SESSION WITH THE CHICAGO WHITE SOX THE TEAM HE'D LIKE TO ACCOMPANY TO SPRING TRAINING HITTING A HOMER IN BATTING PRACTICE IS LIKE SHOOTING A SEVENTY FIVE IN A FRIENDLY GOLF GAME I DARE SAY IT'S HARDER TO DO FOR REAL MEANTIME THOSE WHO FEEL THAT THE WORLD IS A BETTER PLACE WHEN MICHAEL IS PERFORMING FOR THE BULLS CAN TAKE HEART IN THE THOUGHT THAT HIS HIGHNESS IS BORED ENOUGH AFTER THREE MONTHS OF RETIREMENT TO PURSUE A BASEBALL FANTASY THE MOST REVEALING THING I'VE READ ABOUT THE COLLEGE BASKETBALL BOYCOTT THREAT WAS A PIECE IN THIS WEEK'S CHICAGO TRIBUNE IT REPORTED THAT LAST YEAR WHEN THE SCHOLARSHIP LIMIT WAS FOURTEEN ONE HUNDRED SIXTY SIX OF THE TWO HUNDRED EIGHTY EIGHT DIVISION I SCHOOLS HAD AWARDED FEWER IT WENT ON TO SAY THAT WHILE FULL CURRENT SEASON NUMBERS WEREN'T IN YET THE TREND HAD CONTINUED AMONG THE TEAMS MAKING DO WITH FEWER THAN THE CURRENTLY PERMITTED THIRTEEN SCHOLARSHIP PLAYERS WERE THOSE COACHED BY MEN WHO'D BEEN OUTSPOKEN IN FAVOR OF A STRIKE SLASH BOYCOTT BLACK COACHES HAVE BEEN IN THE VANGUARD OF THE MOVE TO RESTORE THE SCHOLARSHIPS PHASED FROM THE SPORT IN THE NAME OF ECONOMY THEY AND OTHERS NOTE THAT SINCE ROUGHLY TWO THIRDS OF ALL DIVISION I BASKETBALL PLAYERS ARE BLACK THE BURDEN OF THE REDUCTIONS HAS FALLEN HEAVIEST ON SUCH YOUNGSTERS THIS IS ABOUT OPPORTUNITY DECLARED ARKANSAS COACH NOLAN RICHARDSON IN FACT THOUGH TOP COLLEGE BASKETBALL TEAMS RARELY USE MORE THAN TEN PLAYERS AND MANY COACHES ARE LOATH TO HAVE TO DEAL WITH THE INEVITABLE BENCH WARMERS WHO ARE INEVITABLY UNHAPPY THE ALACRITY WITH WHICH WHITE AS WELL AS BLACK COACHES ENDORSED THE BOYCOTT CRY AND THE LANGUAGE THEY USED SHOWED THAT THE FIGHT REALLY CENTERS ON WHETHER THE NEWLY EMPOWERED COLLEGE PRESIDENTS OR SCHOOLS' ATHLETICS PROFESSIONALS WILL CONTROL THE GAME FURTHER MANY COACHES HAVE LONG OPPOSED N. C. A. A. ACTIONS TO BOOST THE ACADEMIC REQUIREMENTS FOR ATHLETIC SCHOLARSHIP RECIPIENTS ALBEIT TO STILL VERY MODEST LEVELS MAYBE THEY THINK THAT PHRASING THEIR PROTEST CRY IN TERMS OF OPPORTUNITY WILL DEFLECT ATTENTION FROM THAT LESS THAN ADMIRABLE STANCE IF IT'S EDUCATIONAL OPPORTUNITY THEY'RE INTERESTED IN THE COACHES MIGHT CONSIDER PUSHING TO GIVE THE LOST BASKETBALL SCHOLARSHIPS TO NEEDY STUDENTS WHO'VE PROVEN THEMSELVES IN THE CLASSROOM INSTEAD OF ON THE COURT ONCE IN SCHOOL THESE KIDS COULD GO ABOUT THEIR BUSINESS WITHOUT THE TIME CONSUMING NEED TO SHOULDER THEIR SCHOOLS' BIG MONEY SPORTS ENTERPRISES MAYBE THE COACHES COULD FINANCE THE AWARDS WITH SOME OF THEIR INCOME FROM ATHLETIC SHOE ENDORSEMENTS AND T. V. SHOWS IN DETROIT FOR THE U. S. FIGURE SKATING CHAMPIONSHIPS THE SATURDAY BEFORE LAST I ESCAPED THE FREEZING PRESSROOM FOR A WARM SEAT HIGH IN THE STANDS OF JOE LOUIS ARENA DURING THE EARLY PHASE OF THE WOMEN'S SINGLES FINALS WHEN THE SKATERS WHO DIDN'T FIGURE TO WIN PERFORMED A WOMAN SPOTTED MY PRESS CREDENTIALS AND MOVED INTO THE SEAT NEXT TO ME SHE ASKED IF I KNEW MUCH ABOUT A SKATER ON THE EVENING'S PROGRAM I SAID I THOUGHT I KNEW A LITTLE SHE THEN LAUNCHED INTO A LENGTHY RECITATION ABOUT THE UNSCRUPULOUS PEOPLE WHO SURROUNDED THIS YOUNG WOMAN THEIR PAST MISDEEDS AND HOW THEY WERE EXPLOITING HER SHE CONCLUDED BY SAYING THAT SHE QUOTE WOULDN'T BE SURPRISED QUOTE IF THE BUNCH HAD SOMEHOW BEEN BEHIND THE APPALLING ASSAULT ON NANCY KERRIGAN TWO DAYS EARLIER SNIFFING MANIA I UH HUHED MY WAY THROUGH HER SPIEL AND RETREATED AT EARLIEST OPPORTUNITY A COUPLE DAYS LATER WHEN I HEARD A RADIO FLASH THAT ANOTHER SKATER HAD BEEN IMPLICATED IN THE ATTACK I MENTALLY KICKED MYSELF FOR NOT HAVING TAKEN NOTES IT TURNED OUT THOUGH THAT THE SKATER SHE TOLD ME ABOUT WASN'T TONYA HARDING I ASK YOU IS SKATING A GREAT SPORT OR WHAT ACME CLEVELAND CORPORATION EXPECTS TO REPORT A NET LOSS DESPITE QUOTE MODESTLY HIGHER QUOTE EARNINGS FROM OPERATIONS FOR THE FIRST QUARTER ENDED DECEMBER THIRTY FIRST AND FOR THE YEAR ENDING NEXT SEPTEMBER THIRTIETH SAID DAVID L. SWIFT CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN AN INTERVIEW MR. SWIFT CITED A LARGE EXTRAORDINARY CHARGE FOR POST RETIREMENT BENEFITS AS RESPONSIBLE FOR THE ESTIMATED NET LOSS FOR BOTH PERIODS IN THE YEAR EARLIER FIRST QUARTER ACME CLEVELAND EARNED THIRTEEN CENTS A SHARE FROM OPERATIONS AND IN THE FISCAL YEAR EARNINGS FROM OPERATIONS WERE SIXTY FIVE CENTS A SHARE NET INCOME WAS ONE POINT TWO MILLION DOLLARS OR SEVENTEEN CENTS A SHARE FOR THE NINETEEN NINETY THREE FIRST QUARTER AND SEVEN POINT ONE MILLION DOLLARS OR ONE DOLLAR AND SEVEN CENTS A SHARE FOR THE FISCAL YEAR NET FOR BOTH THE QUARTER AND YEAR INCLUDED EXTRAORDINARY TAX CREDITS AND FISCAL YEAR NET INCLUDED A GAIN FROM SETTLEMENT OF LITIGATION SALES IN THE FISCAL NINETEEN NINETY FOUR FIRST QUARTER FELL BELOW THE FORTY FIVE POINT EIGHT MILLION DOLLARS OF A YEAR EARLIER BECAUSE OF A DROP IN COMMUNICATIONS PRODUCTS ORDERS MR. SWIFT SAID HOWEVER HE SAID SALES FOR THE FISCAL YEAR ARE EXPECTED TO RISE THREE PERCENT TO FIVE PERCENT FROM THE ONE HUNDRED SEVENTY FOUR POINT NINE MILLION DOLLARS OF FISCAL NINETEEN NINETY THREE ACME CLEVELAND IS PRIMARILY A SUPPLIER TO THE AUTO INDUSTRY AND OTHER DURABLE GOODS MANUFACTURERS AND IS BENEFITING FROM HIGH OPERATING RATES IN THOSE INDUSTRIES IT SUPPLIES METAL PRODUCTS MANUFACTURERS WITH DRILLS AND OTHER EXPENDABLE TOOLS MULTIPLE SPINDLE LATHES MEASURING EQUIPMENT SENSORS AND CONTROLS THE COMPANY ALSO MAKES COMMUNICATIONS PRODUCTS RANGING FROM CLOSURES TO PROTECT TELEPHONE LINE SPLICES TO COMPUTERIZED TESTING EQUIPMENT SALES OF THOSE PRODUCTS ARE LOWER THAN A YEAR AGO ACME CLEVELAND WILL REPORT A NINETEEN NINETY FOUR FIRST QUARTER EXTRAORDINARY CHARGE OF NEARLY THIRTY MILLION DOLLARS OR FOUR DOLLARS AND SIXTY NINE CENTS A SHARE SAID EARL J. BELLISARIO SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THE CHARGE INCLUDES ABOUT THIRTY EIGHT MILLION DOLLARS OF POST RETIREMENT BENEFIT COSTS PARTLY OFFSET BY A GAIN FROM A CHANGE IN ACCOUNTING FOR DEFERRED INCOME TAXES RONALDO CUNHA LIMA THE GOVERNOR OF THE NORTHEASTERN STATE OF PARAIBA WAS UPSET HIS PREDECESSOR TARCISIO BURITY HAD ACCUSED MR. LIMA'S SON OF CORRUPTION SO LAST NOVEMBER MR. LIMA WENT TO A RESTAURANT WHERE MR. BURITY WAS HAVING LUNCH PULLED OUT A GUN AND SHOT HIM TWICE QUOTE IN THE NORTHEAST YOU WASH YOUR HONOR WITH A SHOT IN THE MOUTH QUOTE MR. LIMA EXPLAINED TWO DAYS LATER BY THEN HE WAS ALREADY OUT OF JAIL AND HE SOON RESUMED HIS FUNCTIONS MEANWHILE WORDS OF SYMPATHY POURED IN FROM ALL OVER BRAZIL NOT FOR THE VICTIM WHO MIRACULOUSLY SURVIVED BUT FOR HIS ASSAILANT THE GOVERNOR ADOPTED A DIGNIFIED POSTURE BECAUSE HE WAS THE ONE WHO SHOT SAID THE SPEAKER OF BRAZIL'S SENATE HUMBERTO LUCENA HAD HE ADOPTED A LESS DIGNIFIED POSTURE HE WOULD HAVE SENT SOMEONE ELSE TO DO IT THE MUNICIPAL COUNCIL OF CAMPINA GRANDE MR. LIMA'S POLITICAL REDOUBT VOTED TO GRANT HIM A MEDAL AND PARAIBA'S STATE LEGISLATURE OVERWHELMINGLY VOTED AGAINST A SUPREME COURT REQUEST TO TRY MR. LIMA BEFORE HIS TERM EXPIRES AT YEAR END THIS ODD TALE MAY HELP ANSWER A VEXING QUESTION WHY IS BRAZIL LATIN AMERICA'S GIANT MIRED IN CRISIS WHILE THE REST OF THE CONTINENT IS TAKING OFF PART OF THE ANSWER MANY SAY MAY LIE IN BRAZIL'S ETHICS JUST AS MANY BRAZILIANS FAILED TO SEE ANYTHING GRAVELY WRONG WITH GOVERNOR LIMA'S ACTIONS THEY HAVE LONG BEEN COMPLACENT ABOUT RUNAWAY INFLATION SYSTEMIC CORRUPTION AND FRIGHTENING VIOLENCE RATHER THAN CONFRONT PROBLEMS HEAD ON BRAZILIANS FIND WAYS TO AVOID THEM JUSTIFY THEM OR EVEN BENEFIT FROM THEM AND JUST AS POLITICIANS RALLIED AROUND GOVERNOR LIMA SO DO OTHER ENTRENCHED GROUPS CLOSE RANKS WHEN THREATENED ALLOWING PERSONAL OR PAROCHIAL INTERESTS TO OVERRIDE COLLECTIVE ONES AND IMPEDING REFORMS FORMER FINANCE MINISTER MAILSON DA NOBREGA CALLS THIS ETHOS A CULTURE OF ACCOMMODATION CONGRESSMAN ROBERTO CAMPOS CALLS IT COLLECTIVE STUPIDITY ECONOMIST ANTONIO KANDIR CALLS IT A PACT OF MEDIOCRITY BUT WHATEVER THE NAME BRAZILIANS ARE INCREASINGLY REALIZING THAT IT BLOCKS THE COUNTRY'S TURNAROUND AND THAT BRAZIL NEEDS MORE THAN STRUCTURAL ADJUSTMENT IT NEEDS MORAL ADJUSTMENT QUOTE THE FUNDAMENTAL REASON WE CAN'T GET OUR ACT TOGETHER IS WE'RE AN AMORAL SOCIETY QUOTE SAYS LAWRENCE PIH A SAO PAULO BUSINESSMAN THIS CREATES BIG PROBLEMS FOR THE GOVERNMENT A CONSTITUTIONAL REVISION TO REMOVE SOME INFLATIONARY REQUIREMENTS IS BOGGED DOWN IN CONGRESS SO ARE EFFORTS TO FIGHT INFLATION THROUGH AN INCOME TAX INCREASE AND SUSPENSION OF A FEW CONSTITUTIONALLY MANDATED TRANSFERS OF TAX REVENUE TO STATES AND MUNICIPALITIES THE POLITICAL CLASS DOESN'T HAVE THE CIVIC GRANDEUR TO STOP THE COUNTDOWN TO A SOCIAL IMPLOSION WRITES JOELMIR BETTING A NEWSPAPER COLUMNIST SUCH IS BRAZIL'S RELUCTANCE TO SEE ITS PROBLEMS THAT JOSE AUGUSTO ASSUMPCAO BRITO PRESIDENT OF A TRADE GROUP FOR SMALL COMPANIES CALLS IT A CASE FOR AN OPHTHALMOLOGIST WHAT BRAZIL NEEDS IS A PAIR OF EYEGLASSES HE SAYS BRAZIL'S DEEP SEATED PROBLEMS HAVE LONG BEEN MASKED BY THE SIZE AND DYNAMISM OF ITS ECONOMY IN NINETEEN NINETY THREE COMING OFF A RECESSION IT GREW BY ABOUT FOUR POINT FIVE PERCENT BUT THE UNEVEN DISTRIBUTION OF THIS GROWTH MAKES IT EVER HARDER TO IGNORE THE CONSEQUENCES OF BRAZIL'S ANYTHING GOES MENTALITY THE SAME CONGRESS THAT OUSTED PRESIDENT FERNANDO COLLOR DE MELLO ON CORRUPTION CHARGES LAST YEAR NOW IS ENGULFED IN A HUGE GRAFT SCANDAL OF ITS OWN JUDGES LAWYERS AND OFFICIALS ARE ACCUSED OF COLLUDING IN A ONE POINT TWO BILLION DOLLAR SCHEME TO DEFRAUD THE SOCIAL SECURITY SYSTEM THROUGH INFLATED LABOR COURT SETTLEMENTS DOZENS OF POLICEMEN AND EVEN A RIO DE JANEIRO STATE DEPUTY HAVE BEEN CHARGED WITH INVOLVEMENT IN DEATH SQUAD MASSACRES AND PER CAPITA INCOME ADJUSTED FOR INFLATION HAS FALLEN NINE POINT FIVE PERCENT SINCE NINETEEN NINETY STUDIES SHOW THAT THIRTY TWO MILLION BRAZILIANS TWENTY PERCENT OF THE POPULATION LIVE BELOW THE POVERTY LINE THE NATIONAL CRISIS HAS EXCEEDED ALL LIMITS FORMER PRESIDENT JOSE SARNEY WHO HIMSELF IS BATTLING ALLEGATIONS OF ILLICIT ENRICHMENT WROTE RECENTLY HEROIC DECISIONS ARE NEEDED SOME SAY BRAZIL IS HURTLING TOWARD HYPERINFLATION A SOCIAL EXPLOSION OR EVEN A COUP INFLATION IS SO INTRACTABLE THAT ARNALDO JABOR A MOVIE DIRECTOR AND COLUMNIST SEES ONLY ONE EXPLANATION WE DESIRE HYPERINFLATION WE WANT TO SEE HOW LIFE IS AFTER DEATH QUOTE BUT OTHERS BELIEVE BRAZIL IS NEARING A CATHARTIC BREAK WITH ITS CULTURE OF ACCOMMODATION AND THE POLITICAL SYSTEM THAT SUSTAINS IT JUST AS A WAVE OF SCANDALS FINALLY LED ITALY TO START DISMANTLING THE ENTRENCHED ALLIANCE OF CORRUPTION BETWEEN BUSINESS AND POLITICS SO BRAZIL'S CRISIS IS TRIGGERING AN ETHICAL BACKLASH AND CALLS FOR A BRAZILIAN VERSION OF ITALY'S CLEAN HANDS CRACKDOWN WE'RE ON THE VERGE OF A BIG BANG SAYS MARIO GARNERO A PROMINENT BANKER THE WHOLE SYSTEM IS UNSUSTAINABLE STARTING WITH THE OUSTER OF MR. COLLOR BRAZIL HAS BEGUN REVERSING WHAT HAS LONG BEEN ITS OWN VERSION OF CLEAN HANDS WASHING ITS HANDS OF GLARING PROBLEMS SUCH AS INFLATION WHICH MARCIO MOREIRA ALVES A POLITICAL SCIENTIST CALLS THE MOTHER OF ALMOST ALL OTHER CRISES SINCE NINETEEN SIXTY BRAZILIAN PRICES HAVE MULTIPLIED A STAGGERING TWENTY TWO BILLION TIMES ACCORDING TO ECONOMIST CELSO MARTONE BRAZIL CHANGES CURRENCIES LIKE A BABY CHANGES DIAPERS SAYS GUSTAVO FRANCO A CENTRAL BANKER FOUR TIMES IN SEVEN YEARS LOPPING OFF THREE ZEROS NEARLY EVERY TIME EXCEPT FOR NINETEEN EIGHTY SIX WHEN A LONG PRICE FREEZE LIMITED INFLATION TO A MERE SIXTY FIVE PERCENT THE ANNUAL RATE IN THE PAST DECADE HAS NEVER BEEN UNDER TWO HUNDRED ELEVEN PERCENT THE NINETEEN NINETY THREE RATE OF TWO THOUSAND FIVE HUNDRED SIXTY SEVEN PERCENT SET A RECORD AND YET VALENTINO RIZZIOLI CHIEF EXECUTIVE OF TWO MACHINERY COMPANIES OWNED BY ITALY'S FIAT COMPANY CONTENDS THAT QUOTE INFLATION DOESN'T EXIST IN BRAZIL QUOTE HE ISN'T CRAZY PRICES RISE DAILY FOR HIM TOO BUT AS WITH MILLIONS OF BRAZILIANS SO DOES HIS INCOME THANKS TO SOPHISTICATED INDEXATION RATHER THAN ATTACK INFLATION BRAZIL LIVES WITH IT THROUGH A MECHANISM THAT ADJUSTS WAGES AND ASSETS TO IT IN SOME CASES DAILY AS A RESULT CONGRESSMAN CAMPOS SAYS PEOPLE ARE MORE PREOCCUPIED WITH HAVING A GOOD INDEXATOR THAN A LOW INFLATION RATE EVEN THOUGH INDEXATION PERPETUATES INFLATION THUS HAVE MANY BRAZILIANS LEARNED TO TOLERATE EVEN LIKE INFLATION FOR SOME IT BRINGS BIG GAINS AT MR. PIH'S FLOUR MILLING COMPANY MOINHO PACIFICO S. A. IT TURNED AN OPERATING LOSS EQUIVALENT TO ONE POINT EIGHT MILLION DOLLARS INTO A THREE POINT SIX MILLION DOLLAR PROFIT IN NINETEEN NINETY TWO HOW DID HE DO IT HE BUYS FLOUR ABROAD AND HAS ONE HUNDRED EIGHTY DAYS TO PAY FOR IT BUT HE MILLS THE FLOUR AS SOON AS IT IS DELIVERED AND SELLS IT FOR IMMEDIATE PAYMENT HE PUTS THE MONEY INTO FINANCIAL INSTRUMENTS THAT PAY TWO PERCENTAGE POINTS ABOVE INFLATION PER MONTH THE PRICE THAT BANKS HAVE TO PAY TO ATTRACT DEPOSITS AFTER SIX MONTHS I'VE EARNED TWELVE PERCENT MR. PIH SAYS SO IF I OWE ONE HUNDRED I HAVE ONE HUNDRED TWELVE THAT TWELVE IS PROFIT THAT MORE THAN OFFSETS MY OPERATING LOSS THIS GENERALIZED MAKES BUSINESS UNWILLING TO ATTACK INFLATION THE GOVERNMENT TOO IS MARRIED TO INFLATION SAYS EDMAR BACHA SENIOR ADVISER AT THE FINANCE MINISTRY ITS REVENUE TAX RECEIPTS IS INDEXED INCOME TAX PAID MONTHLY ISN'T CALCULATED IN BRAZIL'S CURRENCY THE CRUZEIRO REAL BUT IN A UNIT OF ACCOUNT THE UFIR WHOSE VALUE RISES IN STEP WITH INFLATION BUT THE GOVERNMENT'S EXPENDITURES ARE LARGELY UNINDEXED SO THE LONGER IT WAITS TO SPEND MONEY ON PROGRAMS THE LESS IT ACTUALLY NEEDS TO SPEND THE HIGHER THE INFLATION THE LOWER THE DEFICIT QUOTE THE GOVERNMENT DEPENDS ON SUPERINFLATION TO BALANCE ITS ACCOUNTS QUOTE FINANCE MINISTER FERNANDO HENRIQUE CARDOSO SAID RECENTLY THOUGH HE ADMITS THAT THIS CAN'T GO ON MUCH LONGER THE FLIP SIDE OF THIS SYSTEM HOWEVER IS A COLLAPSE IN PUBLIC SERVICES AND A STEADY WORSENING OF DAILY LIFE FOR THE MAJORITY OF BRAZILIANS WHO LACK PROTECTION FROM INFLATION THEIR VOICES HAVE LONG BEEN DROWNED OUT BY THE PROINFLATION LOBBY AND IGNORED BY THE POLITICAL SYSTEM THE RULING CLASS LOOKS AT INFLATION AND THE POVERTY CREATED BY IT WITH THE SAME NONCHALANCE WITH WHICH IT CONTEMPLATED SLAVERY LAST CENTURY SAYS MR. JABOR THE MOVIE DIRECTOR POLITICAL SCIENTIST BOLIVAR LAMOUNIER WRITING IN THE NEWSPAPER FOLHA DE SAO PAULO DESCRIBES THE GULF BETWEEN THOSE WHOSE INCOME IS INDEXED AND THOSE WHO FEEL INFLATION AS MONETARY APARTHEID INFLATION'S DESTRUCTIVE EFFECTS CAN BE SEEN IN JACAREZINHO A FAVELA OR SHANTYTOWN NORTH OF RIO WHERE ABOUT ONE HUNDRED EIGHTY THOUSAND PEOPLE LIVE IN CRAMPED BRICK BUILDINGS IN A MAZE OF WINDING LANES THIS SLUM HAS A MEDICAL DISPENSARY BUT NO DOCTOR HAS WORKED THERE FOR THREE YEARS BECAUSE THE SALARIES ARE SO LOW RECENTLY HALF THE FAVELA WENT WITHOUT RUNNING WATER FOR TWO WEEKS THE FAVELA HAS NO PUBLIC SCHOOLS THERE ARE A COUPLE OF PRIVATE ONES BUT WITH TUITION RUNNING NEARLY HALF THE MINIMUM WAGE OF ABOUT SEVENTY DOLLARS A MONTH FEW CAN AFFORD IT WE HAVE HUNDREDS OF KIDS HERE WHO DON'T GO TO SCHOOL AND STAY IN THE STREETS ALONE ALL DAY WHILE THEIR PARENTS ARE AT WORK SAYS JOSE THOMAZ DA CONCEICAO PRESIDENT OF THE RESIDENTS' ASSOCIATION AT NIGHT ARMED PEOPLE ROAM THE STREETS AND SOMETIMES DRUG GANGS DO BATTLE IN FIREFIGHTS YOU'RE IN CONSTANT DANGER HERE SAYS JOSE CARLOS PEIXOTO A YOUNG LAWYER WHO LIVES IN JACAREZINHO THERE'S A COMPLETE INVERSION OF VALUES THOSE WHO WORK AND STUDY ARE BUMS THOSE WHO COUNT HERE ARE THE ONES WHO ROB AND HAVE GUNS QUOTE THAT IS BECAUSE MANY WHO WORK EARN THE MINIMUM WAGE WHICH IS RAISED ONLY ONCE EVERY FOUR MONTHS AND IS NEARLY WORTHLESS BY THE SECOND MONTH LAETITIA CONSTANCIA DA SILVA A SLIGHT TWENTY NINE YEAR OLD DEPENDS ON THE MINIMUM WAGE THAT HER HUSBAND EARNS AT A SUPERMARKET PLUS HER OCCASIONAL INCOME AS A CLEANING LADY TO FEED HER HUSBAND DAUGHTER TWO SISTERS AND FIVE YOUNG NEPHEWS THE CHILDREN HAVE NO SHOES MRS. DA SILVA'S DAUGHTER DOESN'T GO TO SCHOOL ONE NEPHEW GOES TO A PUBLIC SCHOOL IN A NEARBY FAVELA WALKING THERE BECAUSE THE BUS FARE COSTS TOO MUCH THE FAMILY MOSTLY EATS RICE AND BEANS SOMETIMES COOKING GAS RUNS OUT BEFORE THE MONTH DOES WE CAN'T AFFORD MORE THAN ONE BOTTLE MRS. DA SILVA SAYS PEOPLE IN JACAREZINHO ARE OUTRAGED BUT MOSTLY RESIGNED TO THEIR FATE WHAT'S MY VOICE COMPARED TO THAT OF THE POWERFUL ASKS ELIANE MARQUES DOS SANTOS A FORTY TWO YEAR OLD NURSE THE POWERFUL AREN'T EVEN BLIND TO OUR PROBLEMS BECAUSE THE BLIND MIGHT NOT SEE BUT THEY FEEL THEIR WAY AROUND HERE THE POWERFUL JUST CRASH THROUGH OUR PROBLEMS AS IF THEY DIDN'T EXIST IN FACT SOME IN THE ELITE ARE STARTING TO TAKE NOTE THERE'S NOTHING MORE ANTI ETHICAL THAN INFLATION AT ITS CURRENT LEVEL EMERSON KAPAZ SAID RECENTLY AS HE ACCEPTED BRAZIL'S BUSINESSMAN OF THE YEAR AWARD QUOTE THE TIME HAS MORE THAN COME FOR US BUSINESSMEN TO BECOME INDIGNANT ABOUT OUR OWN PASSIVITY INFLATION WILL DROP ONLY WHEN WE BECOME AWARE AS A SOCIETY OF HOW EVIL IT IS THE POLITICIANS HAVEN'T WOKEN UP HOWEVER EVERY ECONOMIC TEAM THAT COMES TO POWER MAKES THE SAME DIAGNOSIS THE STATE IS BANKRUPT WE HAVE TO DO A TAX REFORM WE HAVE TO PRIVATIZE SAYS FRANCISCO GROS A FORMER CENTRAL BANK PRESIDENT BUT YOU CAN'T CONVINCE THE POLITICIANS OF THE GRAVITY OF THE SITUATION IT IS A PROBLEM OF PERSONAL VERSUS COLLECTIVE INTERESTS IN BRAZIL'S PORK BARREL POLITICS A GOOD POLITICIAN IS ONE WHO BRINGS PUBLIC WORKS AND PUBLIC SECTOR JOBS TO HIS POWER BASE AND VOTES FOR GENEROUS SOCIAL MEASURES CONGRESS IS LIKE A BIG TOWN COUNCIL FORMER FINANCE MINISTER DA NOBREGA SAYS THEY WANT MONEY FOR A SOCCER FIELD OR A SQUARE THEY VOTE GENEROUS WAGE BILLS SING THE NATIONAL ANTHEM AND THEN SEND THE BILL FOR IT ALL ELSEWHERE QUOTE MOREOVER BRAZIL'S ELECTORAL SYSTEM IS HEAVILY WEIGHTED IN FAVOR OF THE POOREST STATES WHICH WANT TO MAINTAIN THE STATUS QUO BECAUSE THEY RELY ON STATE TRANSFERS FROM BRASILIA SAYS EDUARDO GIANNETTI DA FONSECA AN ECONOMIST BRAZIL'S NINETEEN EIGHTY EIGHT CONSTITUTION REQUIRED THE GOVERNMENT TO TRANSFER A SIGNIFICANT PART OF TAX REVENUE TO STATES AND MUNICIPALITIES BUT DIDN'T WITHDRAW CORRESPONDING RESPONSIBILITIES FROM BRASILIA THE RESULT OF ALL THIS IS A SEEMINGLY UNSTOPPABLE INFLATIONARY MACHINE WE SEE THE REFORMS HAPPENING IN CHILE ARGENTINA OR MEXICO BUT IT DOESN'T TRANSLATE INTO PRESSURE TO DO THE SAME HERE BECAUSE CONGRESS'S LOGIC IS DIFFERENT MR. DA NOBREGA SAYS BRAZIL'S CONGRESS HAS A HIGH DEGREE OF SOCIAL IRRESPONSIBILITY NOWHERE IS THIS MORE EVIDENT THAN IN THE CURRENT CONGRESSIONAL SCANDAL WHILE SOCIAL SERVICES COLLAPSED A GROUP OF DEPUTIES FUNNELED FUNDS RESERVED FOR PHILANTHROPIC INSTITUTIONS INTO SHELL CHARITIES THEY CONTROLLED AND THUS INTO THEIR OWN POCKETS ACCORDING TO A CONGRESSIONAL INVESTIGATIVE COMMITTEE SEVERAL DEPUTIES ALSO INCLUDED BUDGETARY AMENDMENTS AUTHORIZING OVERPRICED AND IN PART UNNEEDED PUBLIC WORKS IN RETURN FOR KICKBACKS FROM CONTRACTORS THE COMMITTEE FOUND THAT THE BUDGET INCLUDED FUNDS TO BUILD ALREADY BUILT OR PHANTOM HOSPITALS MEANWHILE THE HOSPITAL DA POSSE THE BIGGEST PUBLIC HOSPITAL IN BAIXADA FLUMINENSE THE HUGE SPRAWL OF POOR SUBURBS NORTH OF RIO WHERE MORE THAN FIVE MILLION PEOPLE LIVE IS AN EMPTY SHELL ALMOST OUT OF MONEY THE HOSPITAL HAS CLOSED ITS EMERGENCY UNIT AS WELL AS ITS SURGICAL PEDIATRIC AND OBSTETRICS WARDS IT NO LONGER TAKES IN PATIENTS BECAUSE IT HAS NO FOOD OR MEDICINE WHEN ITS TWO CASES OF X. RAY FILM RUN OUT IT WILL CLOSE THAT DEPARTMENT TOO JUST AS IT STOPPED DOING ULTRASOUND TESTS WHEN THE MACHINE BROKE DOWN ALL IT STILL DOES IS OUTPATIENT CONSULTATIONS WHICH REQUIRE JUST A PEN AND PAPER WHERE DO SICK PEOPLE GO A LOT OF THEM GO TO THE CEMETERY SAYS THALES CARDOSO DE MATTOS THE DIRECTOR THEY HAVE TO GO TO RIO WHICH IS OVER AN HOUR'S DRIVE AWAY AND MANY DIE ON THE WAY THERE'S INTERNATIONAL ATTENTION WHEN TEN STREET KIDS ARE MASSACRED BUT HERE TWENTY PEOPLE DIE A DAY IN A SILENT MASSACRE QUOTE SUCH STUFF UNDERMINES DEMOCRACY DOCTOR DE MATTOS SAYS IT MAKES HIM WANT TO TAKE UP ARMS MRS. DOS SANTOS PINES FOR THE DAYS WHEN THE MILITARY RAN THINGS YET BOTH LIKE MANY OTHERS SAY THAT IF BRAZIL'S ECONOMY GROWS DESPITE ALL THIS ITS PROBLEMS AREN'T AS INTRACTABLE AS THEY SEEM IT'S NOT MONEY THAT'S LACKING IN BRAZIL MRS. DOS SANTOS SAYS IT'S SHAME FIRST FIDELITY BANCORP LAWRENCEVILLE N. J. INCREASED ITS QUARTERLY DIVIDEND FOURTEEN PERCENT TO FORTY TWO CENTS A SHARE FROM THIRTY SEVEN CENTS A SHARE PAYABLE FEBRUARY EIGHTH TO SHAREHOLDERS OF RECORD JANUARY THIRTY FIRST LAST WEEK FIRST FIDELITY REPORTED A SEVENTEEN PERCENT INCREASE IN FOURTH QUARTER EARNINGS TO ONE HUNDRED FOUR POINT FOUR MILLION DOLLARS GERALD J. FORD PRESIDENT OF MADISON FINANCIAL INCORPORATED WAS NAMED A DIRECTOR OF THIS BANKING CONCERN FILLING A VACANCY GAYLORD ENTERTAINMENT COMPANY SAID IT HAS TALKED WITH SEVERAL COMPANIES IN RECENT MONTHS ABOUT THE POSSIBILITY OF FORMING A QUOTE STRATEGIC ALLIANCE QUOTE THE COMPANY'S COMMENTS WERE MADE IN RESPONSE TO A JANUARY NINETEENTH PAGE ONE ARTICLE IN THE WALL STREET JOURNAL IN THAT ARTICLE E. W. WENDELL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MEDIA COMPANY INDICATED THAT GAYLORD HASN'T ATTRACTED ANY SIGNIFICANT ACQUISITION ATTENTION YESTERDAY IN A STATEMENT MR. WENDELL SAID FROM TIME TO TIME OVER THE PAST SEVERAL MONTHS THE COMPANY HAS RECEIVED PRELIMINARY CONTACTS FROM AND HAS ENGAGED IN DISCUSSIONS WITH COMPANIES WITH WHOM THE COMPANY COULD FORGE A STRATEGIC BUSINESS ALLIANCE HOWEVER NO SUCH DISCUSSIONS ARE ONGOING BY EITHER THE COMPANY OR THE GAYLORD FAMILY INTERESTS IN ADDITION MR. WENDELL SAID GIVEN THE MAJORITY OWNERSHIP OF EDWARD L. GAYLORD AND HIS FAMILY IT IS DIFFICULT TO IMAGINE THE COMPANY BEING THE SUBJECT OF A HOSTILE OR UNFRIENDLY TAKEOVER THIS BRITISH CONSTRUCTION COMPANY SAID ITS FINANCE DIRECTOR ROGER WOOD IS RESIGNING AND WILL BE SUCCEEDED BY RICHARD SAVILLE MR. WOOD WILL LEAVE MARCH THIRTY FIRST QUOTE TO PURSUE OTHER BUSINESS INTERESTS QUOTE IT SAID THE EUROPEAN UNION'S QUOTE COMMITTEE OF WISE MEN QUOTE EXAMINING THE AVIATION INDUSTRY CRISIS REPORTEDLY CALLS FOR INDEPENDENT REVIEWS OF STATE AID AND THE ADOPTION OF A SINGLE E. U. EXTERNAL RELATIONS POLICY IN ITS UPCOMING REPORT ACCORDING TO PEOPLE FAMILIAR WITH THE COMMITTEE'S FINDINGS THE REPORT PLACES BLAME FOR THE AIRLINE INDUSTRY'S WOES ON LOW PRODUCTIVITY AMONG EUROPEAN CARRIERS THE COMMITTEE WAS APPOINTED IN JUNE BY E. U. TRANSPORT COMMISSIONER ABEL MATUTES TO STUDY PROBLEMS CONFRONTING THE AIRLINE INDUSTRY AND PROPOSE CONCRETE SOLUTIONS THE TWELVE AVIATION INDUSTRY OFFICIALS AND ANALYSTS CONCLUDED THEIR WORK LAST WEEK AND ARE TO RELEASE THEIR REPORT FORMALLY FEBRUARY FIRST BUT COPIES OF THE REPORT ARE CIRCULATING AND PEOPLE WHO HAVE SEEN IT SAY IT TAKES A STRONG PRO COMPETITION STANCE THE COMMITTEE REPORTEDLY FINDS NO LEGITIMATE REASON TO ROLL BACK THE E. U.'S DEREGULATION OF THE SECTOR AND TARGETS GOVERNMENT SUBSIDIES AS A CORRUPTIVE FORCE THERE ARE SOME VERY CLEAR STATEMENTS ABOUT STATE AID AND LIBERALIZATION SAID ONE INDUSTRY OFFICIAL WHO HAS SEEN THE REPORT SOME CONSERVATIVE MEMBERS OF THE AIRLINE INDUSTRY MAY BE SHOCKED ANOTHER PERSON FAMILIAR WITH THE REPORT PORTRAYED ITS CONCLUSIONS AS SAYING IT'S UP TO THE MANAGEMENT AND SHAREHOLDERS TO GET ON WITH THE JOB THE E. U. COMMISSION IMMEDIATELY SHOULD SET A CLEAR POLICY ON STATE AID IN PARTICULAR THE COMMITTEE RECOMMENDS THAT ALL AIRLINE REQUESTS FOR STATE AID BE ACCOMPANIED BY A RESTRUCTURING PLAN AND THAT AN INDEPENDENT AUDIT BE CONDUCTED TO CHECK ON A PLAN'S FEASIBILITY BRITISH AIRWAYS P. L. C. CALLED FOR SUCH ACTION IN DECEMBER AT HEARINGS HOSTED BY THE COMMITTEE UNDER CURRENT E. U. LAW SUBSIDIES ARE ILLEGAL UNLESS PRIVATE INVESTORS WOULD MAKE THE SAME DECISION BASED ON POTENTIAL RETURNS BUT THE LACK OF EXPLICIT RULES FREQUENTLY RESULTS IN COMPETITORS CHALLENGING COMMISSION DECISIONS OFTEN ACCUSING THE COMMISSION OF ACTING ON POLITICAL RATHER THAN ECONOMIC GROUNDS THE E. U. SHOULD ADOPT A SINGLE EXTERNAL AVIATION POLICY WITHIN THREE YEARS THAT WOULD REPRESENT A SIGNIFICANT CHANGE FROM THE CURRENT SYSTEM UNDER WHICH MEMBER STATES NEGOTIATE THEIR AVIATION TREATIES WITH NON E. U. COUNTRIES INDIVIDUALLY LEGAL SCHOLARS HAVE ARGUED FOR YEARS THAT THE E. U. COULD EXTRACT BETTER AGREEMENTS WITH THE U. S. AND OTHER NATIONS IF IT ACTED AS A WHOLE FURTHERMORE THE COMMITTEE REPORTEDLY LAYS OUT WHAT IT SEES AS THE IDEAL EXTERNAL POLICY RECOMMENDING THAT THE E. U. AVOID CREATING A FORTRESS EUROPE BY CLOSING ITS SKIES THE E. U. SHOULD CREATE A LEVEL PLAYING FIELD BY HARMONIZING LAWS AFFECTING THE AIRLINE INDUSTRY SUCH AS FLIGHT TIME LIMITATIONS ON PILOTS AND VALUE ADDED TAX BUT ONE SOURCE SAID THE COMMITTEE CALLS FOR COST BENEFIT ANALYSES IN EACH CASE TO MAKE SURE THAT HARMONIZATION IS DONE AT THE BEST POSSIBLE LEVEL THE E. U. SHOULD BREAK UP MONOPOLIES ON GROUND HANDLING AT AIRPORTS EXCEPT WHERE IT CAN BE PROVEN THAT COMPETITION MAY THREATEN AIRPORT SAFETY CURRENTLY SEVERAL OF EUROPE'S MAJOR AIRPORTS HAVE ONLY ONE COMPANY ALLOWED TO CHECK IN PASSENGERS OR REFUEL PLANES AND MANY AIRLINES COMPLAIN OF EXCESSIVE PRICING AIRPORTS COUNTER THAT ADDITIONAL GROUNDHANDLING COMPANIES WOULD CREATE SAFETY HAZARDS THE GROUP'S REPORT ALSO INCLUDES AN EXTENSIVE ANALYSIS OF THE EUROPEAN AIRLINE INDUSTRY'S PERFORMANCE COMPARED WITH THAT OF THE U. S. INDUSTRY THE REPORTED CONCLUSION IS THAT WHILE U. S. AND EUROPEAN AIRLINES PAY THEIR EMPLOYEES ON ROUGHLY EQUIVALENT SCALES ON AVERAGE THE U. S. CARRIERS GET SIGNIFICANTLY BETTER PRODUCTIVITY FROM WORKERS ON WEDNESDAY EVENING A SPOKESMAN FOR THE COMMITTEE DECLINED TO DISCUSS THE REPORT THE COMMITTEE WILL NOT COMMENT ON THE REPORT AND ITS FINDINGS UNTIL IT HAS BEEN FORMALLY PRESENTED TO COMMISSIONER MATUTES ON FEBRUARY FIRST SAID ANDRE CLODONG A DIRECTOR OF THE EUROPEAN AVIATION CLUB WHICH IS ACTING AS SECRETARIAT TO THE COMMITTEE TWO MEMBERS OF THE SPECIAL COMMITTEE WROTE STRONGLY WORDED DISSENTING OPINIONS IN THE REPORT FRENCH UNION OFFICIAL RENE VALLADON AND FRANKFURT AIRPORT VICE CHAIRMAN MANFRED SCHOELCH DISAGREED WITH CERTAIN PRO COMPETITION PROPOSALS ACCORDING TO A COPY OF THE REPORT OBTAINED BY THE WALL STREET JOURNAL EUROPE MR. VALLADON TOOK ISSUE WITH RECOMMENDATIONS ON SUBSIDIES AND WITH ITS CALL FOR HIGHER LABOR PRODUCTIVITY THROUGH SUCH ACTION AS INCREASED WORKER MOBILITY AND MR. VALLADON AND MR. SCHOELCH COMBINED EFFORTS IN WRITING A DISSENT OVER THE COMMITTEE'S RECOMMENDATION TO DEREGULATE AIRPORT SERVICES SUCH AS CHECKING IN PASSENGERS AND GROUND HANDLING FOR THE MOST PART THOUGH THE COMMITTEE MEMBERS PRESENT A UNITED FRONT WITH EUROPE'S MAJOR AIRLINES REPORTING A COMBINED LOSS OF ABOUT FOUR BILLION DOLLARS IN THE THREE YEARS THROUGH NINETEEN NINETY TWO MR. MATUTES CREATED THE COMMITTEE LAST YEAR TO STUDY WHAT ACTION COULD BE TAKEN HIS MOVE FOLLOWED THE ESTABLISHMENT OF A SIMILAR GROUP BY THE CLINTON ADMINISTRATION IN THE U. S. THE U. S. COMMITTEE FINISHED ITS WORK LAST MONTH THE E. U. COMMITTEE IS HEADED BY FORMER BELGIAN TRANSPORT MINISTER HERMAN DE CROO THE AMERICAN STOCK EXCHANGE TOOK DISCIPLINARY ACTION AGAINST EIGHT PEOPLE FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS UNLESS OTHERWISE NOTED THE INDIVIDUALS COULDN'T BE REACHED TO COMMENT FORMER E. F. HUTTON AND COMPANY BROKER GEORGE ALLEN PHOENIX WAS FINED TEN THOUSAND DOLLARS WITHOUT ADMITTING OR DENYING FINDINGS THAT HE MADE TRADES IN CUSTOMER ACCOUNTS WITHOUT PROPER AUTHORIZATION FORMER ADVEST INCORPORATED BROKER HARRY ARTIERI BUFFALO N. Y. WAS BARRED FOR FIVE YEARS WITH TWO YEARS DEEMED SERVED WITHOUT ADMITTING OR DENYING THAT HE MADE UNAUTHORIZED TRADES IN A CUSTOMER ACCOUNT JOHN CAREY BUFFALO N. Y. A FORMER BROKER WITH ADVEST AND FIRST ALBANY CORPORATION WAS BARRED FOR FIVE YEARS HE DIDN'T ADMIT OR DENY RECOMMENDING UNSUITABLE OPTION TRADES TO CUSTOMERS LEWIS LEE COLLINS NORFOLK VIRGINIA FORMER BRANCH OFFICE MANAGER AND REGISTERED OPTIONS PRINCIPAL AT E. F. HUTTON WAS BARRED FOR TWO YEARS HE DIDN'T ADMIT OR DENY THAT HE FAILED TO PROPERLY SUPERVISE A BROKER FORMER KIDDER PEABODY AND COMPANY BROKER CRAIG DIMOND COSTA MESA CALIFORNIA WAS BARRED FOR FIVE YEARS WITHOUT ADMITTING OR DENYING THAT HE MADE OPTIONS TRADES WITHOUT PROPER AUTHORIZATION SIDNEY J. FEIN HOLLYWOOD FLORIDA A FORMER E. F. HUTTON BROKER WAS FINED TEN THOUSAND DOLLARS AND BARRED FOR ONE YEAR WITHOUT ADMITTING OR DENYING THAT HE RECOMMENDED AND MADE UNSUITABLE OPTIONS TRADES FOR CUSTOMERS AND DIDN'T GET PROPER AUTHORIZATION A FORMER PRUDENTIAL SECURITIES INCORPORATED BRANCH OFFICE MANAGER KEITH GEBLER POMPANO BEACH FLORIDA WAS CENSURED FOR PERMITTING A BROKER TO USE UNAUTHORIZED DISCRETION IN A CUSTOMER'S ACCOUNT QUOTE THIS ACTION GOES BACK TO NINETEEN EIGHTY FIVE AND PRUDENTIAL COULDN'T FIND THE DOCUMENTS THAT THE AMEX REQUESTED BECAUSE THE ACTION WAS SO OLD QUOTE MR. GEBLER SAID THEREFORE WE COULDN'T PROPERLY DEFEND OURSELVES PRUDENTIAL SECURITIES BROKER JOHN OAKES SYRACUSE N. Y. WAS FINED TEN THOUSAND DOLLARS MR. OAKES DIDN'T ADMIT OR DENY FINDINGS THAT HE FAILED TO PROPERLY SUPERVISE ANOTHER BROKER THE INTERNAL REVENUE SERVICE IS GIVING A BREAK TO USERS OF DIESEL FUEL DURING THE COLD WEATHER SNAP THE I. R. S. IS WAIVING A TAX PENALTY IT APPLIES WHEN NONTAXED FUEL SUCH AS THAT USED FOR HOME HEATING OR FARMING OR BY STATE AND LOCAL GOVERNMENTS IS MIXED WITH TAXABLE FUEL SUCH AS THE DIESEL FUEL THAT TRUCKERS USE TO CRACK DOWN ON TAX EVASION IN THE DIESEL FUEL INDUSTRY THE GOVERNMENT HAS BEGUN REQUIRING THE ADDITION OF RED AND BLUE DYES TO NONTAXABLE FUEL THE REQUIREMENT WHICH TOOK EFFECT JANUARY FIRST IS INTENDED TO MAKE IT EASIER FOR I. R. S. INSPECTORS TO TELL WHEN A FUEL IS TAXABLE THE I. R. S. EXPECTS THE CHANGE TO BRING AN ADDITIONAL ONE BILLION DOLLARS IN REVENUES OVER THE NEXT FIVE YEARS BUT THE COLD WEATHER CHILLING THE EAST COAST HAS RAISED CONCERNS OVER A SHORTAGE OF HOME HEATING FUEL MOREOVER DURING THE EXTREME COLD IT IS OFTEN NECESSARY TO ADD KEROSENE WHICH IS TAXABLE TO THE NONTAXED HOME HEATING FUEL TO IMPROVE VISCOSITY QUOTE THE I. R. S. RECOGNIZES THAT EXTREME AND UNEXPECTED WEATHER CONDITIONS MAY NECESSITATE THE ADDITION QUOTE OF UNDYED PRODUCTS TO DYED FUEL THE AGENCY SAID THE I. R. S. SAID HOWEVER THAT IT WILL PENALIZE ANYONE WHO USES THE MIXED FUEL FOR A TAXABLE PURPOSE DUAL DRILLING COMPANY DALLAS SAID IT WILL SELL ONE HUNDRED MILLION DOLLARS OF SENIOR SUBORDINATED NOTES DUE TWO THOUSAND FOUR AT AN INTEREST RATE OF NINE AND SEVEN EIGHTHS PERCENT THE OFFSHORE DRILLING COMPANY PLANS TO USE THE PROCEEDS ABOUT NINETY SIX POINT FIVE MILLION DOLLARS TO REPAY EIGHTY SIX POINT SIX MILLION DOLLARS OF EXISTING DEBT AND TO PAY PART OF THE COST TO ACQUIRE OFFSHORE DRILLING EQUIPMENT DUAL ALSO SAID IT OBTAINED NEW FINANCING TWENTY FIVE MILLION DOLLARS OF REVOLVING CREDIT A TEN MILLION DOLLAR TERM LOAN AND A FIFTEEN MILLION DOLLAR BOND IT SAID THE TERM LOAN WILL BE USED TO PAY THE REMAINING COST OF THE OFFSHORE DRILLING EQUIPMENT SHERRITT INCORPORATED FORT SASKATCHEWAN ALBERTA SAID IT EXPECTS TO RECEIVE ONE HUNDRED NINETY FOUR MILLION CANADIAN DOLLARS ONE HUNDRED FORTY EIGHT POINT ONE MILLION U. S. DOLLARS AFTER EXPENSES FROM THE SALE TO A GROUP OF UNDERWRITERS OF EIGHTEEN POINT FIVE MILLION NEW COMMON SHARES THE SHARES ARE BEING SOLD AT ELEVEN CANADIAN DOLLARS EACH FOR A TOTAL SALE PRICE OF TWO HUNDRED THREE POINT FIVE MILLION CANADIAN DOLLARS THE UNDERWRITING GROUP IS LED BY GORDON CAPITAL CORPORATION AND SCOTIAMCLEOD INCORPORATED SHERRITT CURRENTLY HAS FORTY THREE POINT THREE MILLION SHARES OUTSTANDING SHERRITT WHICH HAS INTERESTS IN NATURAL RESOURCES AND FERTILIZERS SAID IT WILL USE THE PROCEEDS FOR GENERAL CORPORATE PURPOSES AND TO HELP FINANCE POSSIBLE FUTURE ACQUISITIONS THE COMPANY SAID THIS COULD INCLUDE ITS PROPOSED ACQUISITION OF TORONTO BASED IMPERIAL OIL LIMITED'S FERTILIZER OPERATIONS FOR AN ESTIMATED THREE HUNDRED SIXTY FIVE MILLION CANADIAN DOLLARS APPLE COMPUTER INCORPORATED CONTINUING TO FEEL THE SQUEEZE OF SHRINKING PROFIT MARGINS SAID NET INCOME PLUNGED SEVENTY FIVE PERCENT FOR ITS FISCAL FIRST QUARTER ALTHOUGH SHIPMENTS OF MACINTOSH PERSONAL COMPUTERS SOARED TO A RECORD ON DISCOUNTED PRICES THE PROFIT OF FORTY MILLION DOLLARS OR THIRTY FOUR CENTS A SHARE FOR THE PERIOD ENDED DECEMBER THIRTY FIRST COMPARED WITH NET INCOME OF ONE HUNDRED SIXTY ONE POINT THREE MILLION DOLLARS OR ONE DOLLAR AND THIRTY THREE CENTS A SHARE FOR THE YEAR EARLIER QUARTER REVENUE INCREASED TWENTY THREE PERCENT TO TWO POINT FOUR SEVEN BILLION DOLLARS IN THE QUARTER FROM TWO BILLION DOLLARS A YEAR AGO BOOSTED BY A YEAR OVER YEAR FORTY PERCENT JUMP IN SHIPMENTS OF MACINTOSH P. C.S TO A QUARTERLY RECORD OF MORE THAN ONE MILLION THE PROFIT RESULTS SLIGHTLY EXCEEDED ANALYSTS' MEAN EXPECTATIONS FOR THE CUPERTINO CALIFORNIA BASED COMPUTER MAKER TO EARN ABOUT THIRTY ONE CENTS A SHARE FOR THE QUARTER REVENUE WAS ABOUT AS ANALYSTS EXPECTED QUOTE THEY JUST REALLY PUSHED A LOT OF INVENTORY OUT ON THE MARKET BUT IT CAME AT THE EXPENSE OF MARGINS QUOTE SAID JOHN J. GIRTON VICE PRESIDENT OF RESEARCH FOR VAN KASPER AND COMPANY APPLE RELEASED ITS EARNINGS AFTER THE CLOSE OF MAJOR FINANCIAL MARKETS YESTERDAY ITS STOCK ROSE SIXTY TWO POINT FIVE CENTS CLOSING AT TWENTY NINE POINT EIGHT SEVEN FIVE DOLLARS IN NASDAQ STOCK MARKET TRADING APPLE'S ONGOING QUANDARY THE PAST YEAR HAS BEEN TO CUT THE PRICES ON ITS FLAGSHIP MACINTOSH LINE WHILE AT THE SAME TIME TRYING TO KEEP COSTS IN LINE WITH SLIDING PROFIT MARGINS APPLE USED TO BE ABLE TO SELL THE MACINTOSH FOR A PREMIUM OVER RIVAL P. C.S SINCE ITS OPERATING SYSTEM WAS EASIER TO USE BUT THE EXPLOSION ONTO COMPETITIVE P. C.S IN RECENT YEARS OF MICROSOFT CORPORATION'S WINDOWS OPERATING SYSTEM WHICH EMULATES MACINTOSH'S EASE OF USE CRIPPLED APPLE'S ONCE HEALTHY MARKET SHARE GAINS SINCE SUCCEEDING JOHN SCULLEY AS APPLE'S CHIEF EXECUTIVE LAST SUMMER MICHAEL SPINDLER HAS AIMED TO SHARPLY DISCOUNT THE MACINTOSH LINE TO GET SALES BACK ON TRACK BECAUSE THE REDUCED PRICES HAVE SEVERELY CRIMPED PROFIT MARGINS GROSS MARGINS FELL TO TWENTY FOUR PERCENT OF NET SALES IN THE FIRST QUARTER FROM NEARLY FORTY ONE PERCENT A YEAR AGO APPLE HAS HAD TO UNDERGO MASSIVE COST CUTS INCLUDING LAYOFFS OF TWO THOUSAND FIVE HUNDRED EMPLOYEES LAST SUMMER WHILE APPLE'S OPERATING EXPENSES FOR NET SALES WERE REDUCED IN THE QUARTER FROM A YEAR AGO MR. SPINDLER INDICATED IN A STATEMENT THAT OUR CHALLENGE IS TO CONTINUE TO GROW OUR UNIT SHIPMENTS AND REVENUES WHILE WE MAKE FURTHER PROGRESS IN REDUCING OUR OPERATING EXPENSES HE DIDN'T INDICATE IN THE STATEMENT WHETHER MORE STAFF CUTS WERE ANTICIPATED ALTHOUGH WHEN ASKED THAT AT A RECENT NEWS CONFERENCE MR. SPINDLER RESPONDED YOU NEVER KNOW THAT APPLE WAS ABLE TO ACHIEVE BIG GAINS IN MACINTOSH SALES DURING THE BUSY CHRISTMAS SEASON IS A PLUS FOR THE COMPANY SINCE SOME ANALYSTS HAVE VOICED CONCERN THAT BUYERS MIGHT AWAIT THE COMPANY'S PLANNED INTRODUCTION IN MARCH OF A LINE OF MACINTOSHES BASED ON A NEW MICROPROCESSOR CALLED POWERPC THE COMPANY SAID YESTERDAY THAT THE POWERPC LAUNCH REMAINS ON SCHEDULE WHILE APPLE DEVELOPED POWERPC WITH TWO POWERFUL ALLIES INTERNATIONAL BUSINESS MACHINES CORPORATION AND MOTOROLA INCORPORATED IT FACES TOUGH ODDS IN WRESTING MUCH SHARE AWAY FROM WINDOWS BASED P. C. RIVALS BECAUSE WINDOWS COMMANDS NINETY PERCENT OF THE P. C. MARKET THE WINDOWS BASED COMPUTERS ARE POWERED BY MICRPROCESSORS MADE BY CHIPMAKER INTEL CORPORATION A KEY MICROSOFT ALLY APPLE ALSO IS COUNTING ON NEW BUSINESSES TO SHORE UP THE PROFIT LINE IT RECENTLY ANNOUNCED IT WOULD SOON START A COMPUTERIZED ON LINE SERVICE AND IS TRYING TO BUILD A PRODUCT LINE AROUND THE HANDHELD NEWTON MESSAGEPAD INTRODUCED LAST SUMMER NEWTON THOUGH HAS GOTTEN OFF TO A SHAKY START BECAUSE OF USERS' DIFFICULTY IN USING ITS VAUNTED HANDWRITING RECOGNITION AND SO SALES HAVE BEEN DISAPPOINTING HEALTHDYNE TECHNOLOGIES INCORPORATED EXPECTS TO REPORT THAT FOURTH QUARTER EARNINGS JUMPED ABOUT FIFTY PERCENT FROM A YEAR EARLIER ON A SALES INCREASE OF MORE THAN THIRTY PERCENT SAID CRAIG REYNOLDS PRESIDENT AND CHIEF EXECUTIVE THE MAKER OF MEDICAL DEVICES FOR HOME AND SPECIALIZED CLINICAL SETTINGS ANTICIPATES THAT FOURTH QUARTER NET INCOME WILL TOTAL JUST ABOVE ONE POINT FIVE MILLION DOLLARS COMPARED WITH ONE MILLION DOLLARS A YEAR EARLIER MR. REYNOLDS SAID PER SHARE EARNINGS WILL LIKELY EXCEED ANALYSTS' ESTIMATES OF SIXTEEN CENTS ENDING UP IN THE QUOTE RANGE OF SIXTEEN CENTS TO EIGHTEEN CENTS QUOTE REVENUE HE SAID TOTALED ABOUT TWENTY MILLION DOLLARS IN THE QUARTER COMPARED WITH FIFTEEN POINT TWO MILLION DOLLARS IN THE NINETEEN NINETY TWO FOURTH QUARTER FOR ALL OF NINETEEN NINETY THREE HEALTHDYNE TECHNOLOGIES EXPECTS TO REPORT NET INCOME OF JUST ABOVE FIVE MILLION DOLLARS COMPARED WITH THREE POINT EIGHT MILLION DOLLARS A YEAR EARLIER AGAIN MR. REYNOLDS SAID HE EXPECTS PER SHARE EARNINGS TO SLIGHTLY EXCEED ANALYSTS' ESTIMATES OF SIXTY CENTS COMING IN AT SIXTY CENTS TO SIXTY TWO CENTS REVENUE IN NINETEEN NINETY THREE TOTALED ABOUT SIXTY EIGHT MILLION DOLLARS MR. REYNOLDS SAID COMPARED WITH FIFTY FOUR POINT THREE MILLION DOLLARS IN NINETEEN NINETY TWO THE EXPECTED GAINS FOR THE QUARTER AND THE YEAR COME ON A LARGER NUMBER OF AVERAGE SHARES OUTSTANDING ABOUT NINE POINT THREE MILLION IN THE JUST COMPLETED QUARTER COMPARED WITH SEVEN POINT FIVE MILLION A YEAR EARLIER AND ABOUT EIGHT POINT FOUR MILLION FOR ALL OF NINETEEN NINETY THREE COMPARED WITH SEVEN POINT FIVE MILLION IN NINETEEN NINETY TWO IN AN INTERVIEW MR. REYNOLDS SAID HE IS VERY COMFORTABLE WITH ESTIMATES THAT HEALTHDYNE TECHNOLOGIES WILL REPORT EARNINGS OF SEVENTY CENTS TO SEVENTY TWO CENTS A SHARE FOR ALL OF NINETEEN NINETY FOUR HE SAID HE ANTICIPATES GROWTH IN BOTH REVENUE AND PROFIT OF BETWEEN TWENTY PERCENT AND TWENTY FIVE PERCENT FOR THE YEAR REVIEWING THE COMPANY'S PERFORMANCE FOR THE FOURTH QUARTER AND YEAR MR. REYNOLDS NOTED THAT HEALTHDYNE TECHNOLOGIES HAD RECORD PERFORMANCES IN EACH OF ITS THREE PRIMARY SEGMENTS DIAGNOSIS AND TREATMENT OF SLEEP DISORDERS RESPIRATORY CARE AND INFANT MONITORING IN SLEEP DISORDERS THE FASTEST GROWING AND MOST PROFITABLE OF THE THREE SEGMENTS REVENUE JUMPED FORTY PERCENT IN THE FOURTH QUARTER FROM A YEAR EARLIER MR. REYNOLDS SAID BASS P. L. C. TOLD SHAREHOLDERS THAT THE QUOTE GENTLE QUOTE RECOVERY IN THE U. K. ECONOMY IS HAVING LITTLE BENEFIT ON ITS BUSINESS OF BREWING AND HOTELS IAN PROSSER CHAIRMAN SAID AT THE ANNUAL MEETING THAT THE COMPANY WOULD HAVE TO SEEK IMPROVEMENTS FOR THE YEAR AS A WHOLE FROM MANAGEMENT ACTION RATHER THAN BUSINESS CONDITIONS MR. PROSSER SAID THE BEER BUSINESS HAD BEEN VOLATILE BUT THAT CHRISTMAS SALES WERE SLIGHTLY ABOVE NINETEEN NINETY TWO'S LEVEL HOWEVER PROFIT MARGINS HAVE BEEN PRESSURED BY COMPETITION BASS SAID THAT IN ITS BASS TAVERNS DIVISION FISCAL NINETEEN NINETY FOUR PROFIT IS SLIGHTLY AHEAD OF FISCAL NINETEEN NINETY THREE ALTHOUGH THE DIVISION IS OPERATING NEARLY TEN PERCENT FEWER OUTLETS THE REDUCTION IN THE NUMBER OF OUTLETS WILL PROBABLY AFFECT BASS TAVERNS' PROFIT BY ABOUT NINE MILLION POUNDS THIRTEEN POINT FOUR MILLION DOLLARS IN THE YEAR'S FIRST HALF THE FISCAL YEAR ENDS IN SEPTEMBER PROFITABILITY IS BEING BOOSTED BY COST REDUCTION BUT BASS REPEATED THAT PROFIT WILL BE REDUCED AN ADDITIONAL FIVE MILLION POUNDS THIS YEAR BASS FIRST MADE THAT ANNOUNCEMENT IN DECEMBER IN ITS HOTELS OPERATIONS BASS SAID HOLIDAY INN WORLDWIDE DOLLAR PROFITS CONTINUE TO MOVE FORWARD WITH THE ADDITION OF HOTELS A FURTHER TWO HUNDRED EIGHTY TWO HOTELS ARE TO BE OPENED TO ADD TO THE ONE THOUSAND SEVEN HUNDRED NINETY FIVE HOTELS THAT ALREADY OPERATE UNDER THE NAME IN THE U. S. BOTH FRANCHISED HOTELS AND BASS'S COMPANY MANAGED HOTELS HAVE IMPROVED REVENUE PER ROOM BY ONE POINT SEVEN PERCENT AND TWO POINT SIX PERCENT RESPECTIVELY IN EUROPE HOWEVER HOLIDAY INN IS STILL EXPERIENCING DIFFICULT TRADING AVERAGE ROOM RATES ARE DOWN MORE THAN FIVE PERCENT FROM A YEAR AGO ALTHOUGH THE U. K. HAS BEGUN TO SHOW SOME IMPROVEMENT AFTER SEVERAL YEARS OF WEAK TRADING OVERALL BASS SAID THAT DESPITE THE EXTRA COST OF DUTIES ANNOUNCED BY THE GOVERNMENT IN LATE NINETEEN NINETY THREE OPERATING PROFIT IS A LITTLE ABOVE THAT FOR THE FIRST SIX MONTHS OF FISCAL NINETEEN NINETY THREE BUT PRETAX PROFIT IS LIKELY TO BE BROADLY IN LINE WITH THE YEAR BEFORE AS THE LOWER STERLING DEPOSIT RATES AND THE STRONG DOLLAR HAVE MEANT HIGHER NET INTEREST PAYABLE GUINNESS P. L. C. AND FRANCE'S L. V. M. H. MOET HENNESSY LOUIS VUITTON S. A. RESTRUCTURED THEIR CROSS OWNERSHIP PERMITTING GUINNESS TO FOCUS ITS INVESTMENT ON BUSINESSES THEY HAVE IN COMMON AND DISTANCE ITSELF FROM L. V. M. H.'S OTHER ACTIVITIES THE CHANGE DISENGAGES THE BRITISH BREWER AND DISTILLER FROM L. V. M. H.'S PERFUME AND LUGGAGE BUSINESSES WHILE LINKING IT CLOSER TO THE FRENCH COMPANY'S CHAMPAGNE AND COGNAC UNIT AT THE SAME TIME IT WILL MAKE IT EASIER FOR L. V. M. H. TO DIVERSIFY FURTHER INTO BUSINESSES THAT DON'T INTEREST GUINNESS QUOTE THIS IS THE FIRST GOOD NEWS FOR GUINNESS IN TWO YEARS QUOTE SAID GRAEME EADIE AN ANALYST AT NATWEST SECURITIES NOTING THAT THE COMPANY HAS BEEN HURT BY THE RECESSION AND THE DECLINING CONSUMPTION OF SCOTCH WHISKY ANALYSTS CAUTIONED THAT THE CHANGE WON'T HELP GUINNESS OVERCOME THESE SHORTTERM PROBLEMS ANY TIME SOON STILL WITH INVESTORS FOCUSING ON THE POTENTIAL LONGER TERM BENEFITS GUINNESS'S SHARES JUMPED FORTY NINE PENCE OR TEN PERCENT TO FIVE HUNDRED TWENTY ONE PENCE IN LATE TRADING ON THE STOCK EXCHANGE IN LONDON L. V. M. H.'S STOCK HOWEVER DROPPED AMID CONCERNS BY INVESTORS THAT CHAIRMAN BERNARD ARNAULT MIGHT USE PROCEEDS FROM THE RESTRUCTURING TO BUILD A MEDIA EMPIRE THROUGH COSTLY ACQUISITIONS LAST AUGUST FOR INSTANCE L. V. M. H. ACQUIRED CONTROL OF THE GROUPE DESFOSSES INTERNATIONAL A NEWSPAPER PUBLISHER L. V. M. H.'S SHARES CLOSED AT THREE THOUSAND EIGHT HUNDRED NINETY NINE FRANCS SIX DOLLARS AND FIFTY SEVEN CENTS DOWN THREE POINT FOUR PERCENT IN PARIS UNDER THE ACCORD GUINNESS WILL SELL ITS TWENTY FOUR PERCENT INDIRECT STAKE IN L. V. M. H. FOR ONE POINT TWO THREE BILLION POUNDS ONE POINT EIGHT FOUR BILLION DOLLARS AND ACQUIRE A THIRTY FOUR PERCENT INTEREST IN L. V. M. H.'S MOET HENNESSY S. A. WINE AND SPIRITS UNIT FOR NINE HUNDRED TWO MILLION POUNDS THIS WILL LOWER ITS DEBT TO THIRTY SEVEN PERCENT OF EQUITY FROM FORTY SEVEN PERCENT L. V. M. H. WILL REDUCE ITS HOLDING IN GUINNESS TO TWENTY PERCENT FROM TWENTY FOUR PERCENT BY JUNE THIRTIETH NINETEEN NINETY FIVE BY SELLING THE SHARES TO UNRELATED INVESTORS FURTHER L. V. M. H. SAID CHRISTIAN DIOR WHICH HAS INDIRECT CONTROL OF THE FRENCH COMPANY WILL BUY GUINNESS'S STAKE AND FINANCE THE PURCHASE THROUGH A RIGHTS ISSUE THAT NEWS SENT CHRISTIAN DIOR SHARES INTO A TAILSPIN ENDING AT THREE HUNDRED SIXTY FRANCS DOWN SEVEN POINT SEVEN PERCENT FROM THREE HUNDRED NINETY FRANCS ANALYSTS HAD CRITICIZED GUINNESS FOR HOLDING A HUGE STAKE IN L. V. M. H. BUT HAVING LITTLE SAY IN ITS BUSINESS NOW UNDER FRENCH LAW GUINNESS'S THIRTY FOUR PERCENT STAKE IN MOET HENNESSY GIVES IT MINORITY BLOCKAGE RIGHTS OR AN EFFECTIVE VETO ON CERTAIN MAJOR STRATEGIC DECISIONS MOREOVER GUINNESS STAYS CLEAR OF ANY FURTHER DIVERSIFICATION BY MR. ARNAULT WE WILL NOT BE PART OF ANY NEW DIRECTION MEDIA OR OTHER THAT THEY PURSUE IN THE FUTURE ANTHONY GREENER CHAIRMAN OF GUINNESS SAID A DIRECT INVESTMENT IN THE CORE BRANDS OF WINES AND SPIRITS IS CLEARLY MORE APPROPRIATE FOR US ADDED NATWEST'S MR. EADIE IT TAKES THE ARNAULT FACTOR OUT OF THE EQUATION WHICH IS GOOD BECAUSE HE'S UNPREDICTABLE GUINNESS WILL HAVE AN INVESTMENT GAIN OF TWO HUNDRED FOUR MILLION POUNDS ON THE DISPOSAL BUT OVERALL WILL END UP TAKING A CHARGE OF ONE HUNDRED SEVENTY THREE MILLION POUNDS AGAINST ITS NINETEEN NINETY THREE EARNINGS RELATING TO GOODWILL WRITE OFFS GUINNESS SAID IT EXPECTS TO REPORT PRETAX PROFIT FOR THE YEAR OF AT LEAST EIGHT HUNDRED SEVENTY FIVE MILLION POUNDS BEFORE THAT EXCEPTIONAL CHARGE IN NINETEEN NINETY TWO GUINNESS HAD PRETAX PROFIT OF SEVEN HUNDRED NINETY FIVE MILLION POUNDS MR. GREENER SAID THE OWNERSHIP RESTRUCTURING EVENTUALLY SHOULD LEAD TO MORE DISTRIBUTION JOINT VENTURES WITH MOET HENNESSY THESE VENTURES GIVE THE TWO COMPANIES MORE MARKETING CLOUT BY COMBINING THEIR WELL KNOWN BRANDS THE BRITISH COMPANY'S GUINNESS BEER JOHNNIE WALKER AND DEWAR'S SCOTCH WHISKY AND GORDON'S AND TANQUERAY GIN AMONG OTHERS AND L. V. M. H.'S DOM PERIGNON AND MOET AND CHANDON CHAMPAGNE AND HENNESSY COGNAC GUINNESS'S TIES WITH L. V. M. H. GO BACK TO NINETEEN EIGHTY SEVEN WHEN THEY BEGAN ESTABLISHING DISTRIBUTION JOINT VENTURES GUINNESS INVESTED IN L. V. M. H. TO KEEP IT FROM SPLITTING APART AND TO PROTECT THOSE JOINT VENTURES WHEN A BATTLE FOR CONTROL OF L. V. M. H. BROKE OUT BETWEEN MR. ARNAULT AND RIVALS SEVERAL GIANT FOOD COMPANIES ARE BETTING THEY CAN LAY TO REST THE BELIEF THAT THE CHINESE DON'T LIKE CHEESE AND OTHER DAIRY PRODUCTS THIS WEEK NESTLE S. A. ANNOUNCED PLANS FOR A JOINT VENTURE TO BUILD TWO DAIRIES IN THE NORTHERN PORT CITY OF QINGDAO TO MAKE ICE CREAM AND YOGURT THE SWISS FOOD COMPANY ALREADY OPERATES ONE DAIRY IN NORTHERN CHINA THAT PRODUCES POWDERED MILK AND A PLANT IN GUANGDONG PROVINCE THAT MAKES COFFEE AND NONDAIRY COFFEE CREAMERS UNILEVER GROUP THE ANGLO DUTCH CONSUMER PRODUCTS COMPANY LAST YEAR ANNOUNCED PLANS TO BUILD A FACTORY IN BEIJING TO MAKE WALL'S ICE CREAM AND KRAFT GENERAL FOODS INCORPORATED A DIVISION OF PHILIP MORRIS COMPANIES OPENED A JOINT VENTURE DAIRY IN BEIJING LAST YEAR KRAFT PRODUCTS ALREADY SOLD IN CHINA INCLUDE INDIVIDUALLY WRAPPED CHEESE SLICES AND MIRACLE WHIP SALAD DRESSING SNOW BRAND MILK PRODUCTS COMPANY JAPAN'S LARGEST DAIRY PRODUCTS MAKER ANNOUNCED IT WILL OPEN AN OFFICE IN SHANGHAI AS PART OF ITS STRATEGY TO EXPAND ITS GLOBAL OPERATIONS THE NEW OFFICE SNOW BRAND'S FIRST FOOTHOLD IN CHINA WILL BE SET UP IN APRIL TO CONDUCT MARKET RESEARCH KATE CLEVE NEWMAN WHO TRACKS RETAIL AND BEVERAGE COMPANIES AT KLEINWORT BENSON SECURITIES ASIA LIMITED IN HONG KONG SAYS ASIANS TEND TO PREFER BLAND OR SWEET TASTING DAIRY PRODUCTS SUCH AS ICE CREAM RATHER THAN BITTER ONES SUCH AS SHARP CHEESE YOGURT FOR EXAMPLE IS A POPULAR SNACK IN SINGAPORE BUT ONLY FOUND ITS MARKET ONCE MAKERS ADDED FRUIT TO BLOCK OUT THE NATURALLY SOUR TASTE IN SOME RURAL AREAS OF ASIA SALES OF DAIRY PRODUCTS LONG WERE HELD BACK BY LACK OF REFRIGERATION AND POOR ROADS WHICH MAKE IT DIFFICULT TO DELIVER FRESH FOOD THAT'S ONE REASON POWDERED AND CONDENSED MILKS WERE AMONG THE FIRST BIG DAIRY SELLERS IN THE REGION NESTLE'S NESPRAY POWDERED MILK IS POSITIONED AS A HEALTH FOOD IN CHINA NESPRAY'S CHINA ADS DEVELOPED BY J. WALTER THOMPSON COMPANY FEATURE A YOUNG COUPLE TEACHING ITS ONLY CHILD TO RIDE A BIKE THE MARKET FOR ICE CREAM CHEESE AND YOGURT IS MORE DEVELOPED IN NORTHERN AND NORTHEASTERN CHINA WHERE THE COOLER CLIMATE HELPS KEEP DAIRY PRODUCTS FRESHER LONGER A KRAFT EXECUTIVE SAYS CHEESE ALSO HAS TRADITION BEHIND IT IN NORTHERN CHINA IT WAS A FAVORITE FOOD OF A MING DYNASTY EMPRESS IN SOUTHERN CHINA INCREASING WEALTH AND THE INFLUENCE OF HONG KONG MEDIA ARE HELPING DEVELOP A MARKET FOR DAIRY PRODUCTS TWO WEEKS AGO PEPSICO INCORPORATED'S PIZZA HUT INTERNATIONAL DIVISION WHICH OPERATES FOUR RESTAURANTS IN BEIJING OPENED ITS SEVENTH OUTLET IN GUANGZHOU PIZZA HUT EXECUTIVES SAY CHINA AND INDIA ARE MAJOR TARGETS OF THEIR INTERNATIONAL EXPANSION ONE FACTOR THAT BODES WELL FOR PIZZA SALES IN CHINA THE MILD TASTING MOZZARELLA CHEESE NORMALLY USED ON PIZZA SUITS CHINESE TASTES AS DOES THE BLAND CHEESE USED ON MCDONALD'S HAMBURGERS CANADIAN MANUFACTURERS' SHIPMENTS INCREASED IN NOVEMBER FOR THE FOURTH CONSECUTIVE MONTH RISING ZERO POINT FIVE PERCENT FROM OCTOBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE RISE WAS LED BY THE PRIMARY METAL WOOD AND CHEMICAL INDUSTRIES SHIPMENTS BY THE AUTO INDUSTRY DECLINED TWO POINT SEVEN PERCENT IN NOVEMBER MAINLY BECAUSE OF SOME TEMPORARY PLANT CLOSURES FOR MODEL CHANGES MANUFACTURERS RECORDED A ONE PERCENT RISE IN NEW ORDERS IN NOVEMBER BUT THEIR BACKLOG OF UNFILLED ORDERS DECLINED ZERO POINT SEVEN PERCENT PRUDENTIAL CORPORATION OF BRITAIN SAID THAT NEW ANNUALIZED BUSINESS IT GENERATED FOR NINETEEN NINETY THREE FELL THREE POINT TWO PERCENT TO ONE HUNDRED ONE POINT SIX MILLION POUNDS ONE HUNDRED FIFTY ONE POINT SIX MILLION DOLLARS FROM A YEAR EARLIER ONE HUNDRED FIVE MILLION POUNDS NEW BUSINESS PREMIUMS A COMMON MEASURE OF PERFORMANCE FOR BRITISH INSURERS CONSISTS OF ANNUAL PREMIUMS PLUS TEN PERCENT OF SINGLE PREMIUMS WORLD WIDE NEW ANNUAL PREMIUM SALES FOR NINETEEN NINETY THREE FELL NINE PERCENT TO FIVE HUNDRED THIRTY SIX MILLION POUNDS FROM FIVE HUNDRED NINETY TWO MILLION POUNDS REFLECTING QUOTE A CONTINUED RELUCTANCE BY CONSUMERS TO ENTER INTO REGULAR LONG TERM FINANCIAL COMMITMENTS QUOTE SAID PRUDENTIAL WHICH IS UNRELATED TO PRUDENTIAL INSURANCE COMPANY OF AMERICA TOTAL NEW SINGLE PREMIUMS ROSE FIVE PERCENT TO FOUR HUNDRED SEVENTY NINE POINT EIGHT MILLION POUNDS FROM FOUR HUNDRED FIFTY EIGHT POINT ONE MILLION POUNDS IN THE UNITED KINGDOM SINGLE PREMIUM SALES GREW A HEALTHY TWENTY FOUR PERCENT TO TWO HUNDRED FORTY FOUR POINT TWO MILLION POUNDS FROM ONE HUNDRED NINETY SEVEN POINT FOUR MILLION POUNDS REFLECTING STRONG SALES OF THE PRUDENCE BOND AND PENSION BUSINESS ANNUAL PREMIUM SALES ON THE OTHER HAND FELL TWELVE PERCENT IN THE U. K. TO TWO HUNDRED EIGHTY SIX MILLION POUNDS FROM THREE HUNDRED TWENTY FIVE MILLION POUNDS FOLLOWING AN EXPECTED DECLINE IN THE SALE OF INDUSTRIAL BRANCH OR CASH COLLECTION POLICIES PRUDENTIAL SAID SALES AT U. S. SUBSIDIARY JACKSON NATIONAL LIFE WERE DISAPPOINTING PRUDENTIAL SAID SHOWING A DECLINE IN SINGLE PREMIUMS TO ONE POINT OH SEVEN BILLION POUNDS ONE POINT SIX BILLION DOLLARS FROM ONE POINT FIVE EIGHT BILLION POUNDS JACKSON NATIONAL'S BUSINESS WAS ALSO AFFECTED BY LOW INTEREST RATES AND COMPETITION FROM EQUITY BASED PRODUCTS PRUDENTIAL SAID JACKSON NATIONAL HAS LAUNCHED A NEW RANGE OF ANNUITY PRODUCTS WHICH SHOULD PROVE MORE ATTRACTIVE IN THE CURRENT ECONOMIC CLIMATE IT ALSO SAID IT PLANS MORE PRODUCT LAUNCHES THIS YEAR CHINA HAS AGREED TO ENFORCE COMPLIANCE WITH INTERNATIONAL COPYRIGHT LAWS IN ORDER TO CURTAIL THE PRODUCTION OF COUNTERFEIT COMPACT DISKS U. S. TREASURY SECRETARY LLOYD BENTSEN SAID THE AGREEMENT WITH VICE PREMIER ZHU RONGJI REMOVES ONE OF THE IRRITANTS IN WHAT APPEARS TO BE A LESS CONFRONTATIONAL MORE PRODUCTIVE ECONOMIC RELATIONSHIP EVOLVING BETWEEN CHINA AND THE U. S. BEFORE HE LEAVES CHINA THIS WEEKEND MR. BENTSEN STILL HOPES TO WIDEN THE SCOPE OF SERVICES U. S. AND OTHER FOREIGN FINANCIAL SERVICE FIRMS CAN PROVIDE IN CHINA IN RETURN THE U. S. IS PREPARING TO OFFER CHINA A WIDER RANGE OF TECHNICAL ASSISTANCE ON ISSUES RANGING FROM FINANCIAL REGULATION TO THE CONTROL OF INFLATION CHINA'S INFLATION RATE IS RUNNING AT TWENTY PERCENT A YEAR OR MORE AND CHINESE LEADERS ARE BECOMING INCREASINGLY CONCERNED THAT THEIR ECONOMY IS OVERHEATING MR. BENTSEN SAID PRESIDENT JIANG ZEMIN TOLD HIM THAT THEY WANTED TO MOVE DELIBERATELY TOWARD REFORM QUOTE HE THOUGHT IT WAS VERY IMPORTANT THAT THEY TEST OUT SOME OF THE FREE MARKET IDEAS QUOTE MR. BENTSEN SAID HE EXPRESSED SOME RESERVATIONS ABOUT MAKING THE CHINESE CURRENCY FULLY CONVERTIBLE THERE ARE SOME OTHER SIGNS THAT CHINA WANTS TO MODERATE THE PACE OF ECONOMIC REFORM LAST WEEK MR. ZHU WHO IS ALSO THE GOVERNOR OF THE PEOPLE'S BANK OF CHINA WARNED BANKS TO STICK WITH PREVIOUSLY ANNOUNCED CREDIT LIMITS DESIGNED TO SLOW INFLATION ACCORDING TO CHINA DAILY AND PRESIDENT JIANG WHILE TOURING STORES IN BEIJING CALLED FOR THE MAINTENANCE OF LOW PRICES BUT THE CHIEF OF CHINA'S ANTI INFLATION EFFORTS MAY BE ABOUT TO CHANGE A CHINESE SOURCE SAYS MR. ZHU PLANS TO RESIGN AS HEAD OF THE BANK OF CHINA IN MARCH HE WOULD CONTINUE AS A VICE PREMIER SPECULATION ABOUT MR. ZHU'S RESIGNATION HAS BEEN CIRCULATING FOR SOME TIME AND MR. ZHU ALREADY HAS SELECTED HIS SUCCESSOR THE SOURCE SAID MR. BENTSEN ANNOUNCED THURSDAY THAT WASHINGTON AND BEIJING HAVE AGREED ON MEASURES TO ENSURE MORE EFFECTIVE PREVENTION OF THE EXPORT OF GOODS MADE WITH PRISON LABOR CHINA HOPES THAT THE VERBAL ACCORD WILL DEFUSE CONGRESSIONAL CONCERN ABOUT ITS HUMAN RIGHTS POLICIES AND THEREBY HELP IT WIN CONTINUATION OF ITS MOST FAVORED NATION TRADE STATUS WHICH GIVES IT THE LOWEST POSSIBLE TARIFFS IN ITS TRADE WITH THE U. S. THE ECONOMIC DEPRESSION THAT LED UP TO LAST WEEK'S DECISION TO HALVE THE VALUE OF THE C. F. A. AFRICAN FRANC TO ZERO POINT ZERO ONE FRENCH FRANC WAS COMPARABLE IN MAGNITUDE TO THE ECONOMIC MELTDOWN OF THE FORMER SOVIET UNION OFFICIALS AT INTERNATIONAL FINANCIAL INSTITUTIONS SAY THE ADJUSTMENT WAS DESIGNED TO CORRECT A CURRENCY MISALIGNMENT THAT HAD EFFECTIVELY PRICED THE PRODUCTS OF SOME OF THE WORLD'S POOREST COUNTRIES OUT OF THE WORLD MARKET AND THE FINANCIAL PAIN THAT IT IS NOW CAUSING WILL HAVE BEEN IN VAIN IF THE GOVERNMENTS IN THE C. F. A. ZONE DON'T IMPLEMENT LONG DELAYED FISCAL MONETARY AND WAGE DISCIPLINE ACCORDING TO EXPERTS AT THE WORLD BANK AND THE INTERNATIONAL MONETARY FUND ACCORDING TO ONE INTERNAL REPORT DISTRIBUTED PRIOR TO THE DEVALUATION QUOTE IF MAJOR POLICY REFORMS AREN'T IMPLEMENTED THE CURRENT DEPRESSION WHICH IS ALREADY IN ITS EIGHTH YEAR WILL CONTINUE FOR ANOTHER FIVE TO TEN YEARS QUOTE THE MISALIGNMENT OF THE C. F. A. FRANC NAMED AFTER THE COMMUNAUTE FINANCIERE AFRICAINE STARTED IN THE MID NINETEEN EIGHTIES AND WORSENED STEADILY AS FRANCE AND THE FOURTEEN C. F. A. ZONE GOVERNMENTS FIRST TURNED A BLIND EYE TO AND THEN RESISTED AN ADJUSTMENT FOR POLITICAL REASONS THE C. F. A. FRANC IS THE COMMON CURRENCY OF BENIN BURKINA FASO CAMEROON CENTRAL AFRICAN REPUBLIC CHAD COMORES CONGO THE IVORY COAST EQUATORIAL GUINEA GABON MALI NIGER SENEGAL AND TOGO ALL OF WHICH ARE FORMER COLONIES OF FRANCE OR WERE UNDER ITS INFLUENCE THE EXCHANGE RATE HAD BEEN UNCHANGED SINCE NINETEEN FORTY EIGHT AT FIFTY C. F. A. FRANCS TO ONE FRENCH FRANC MAKING IT THE WORLD'S LONGEST LASTING FIXED PARITY UNCOMPETITIVE COMMODITIES THESE COUNTRIES WERE SUFFOCATING IN SILENCE OBSERVED A WORLD BANK OFFICIAL WHO DECLINED TO BE IDENTIFIED THE RELATIVELY HIGH VALUE C. F. A. FRANC MADE THEIR COCOA COFFEE LUMBER AND MINERALS HOPELESSLY UNCOMPETITIVE COMPARED WITH RAW MATERIALS PRODUCED IN NEIGHBORING COUNTRIES DESPITE SOME TIMID ATTEMPTS AT INTERNAL ECONOMIC ADJUSTMENT THE FRANC ZONE ECONOMIES SANK INCREASINGLY DEEPER INTO DEPRESSION BY NINETEEN NINETY TWO REAL GROSS NATIONAL PRODUCT PER CAPITA IN THE C. F. A. ZONE HAD SLUMPED BY MORE THAN TWENTY PERCENT TO FIVE HUNDRED SIXTY FIVE DOLLARS FROM THE NINETEEN EIGHTY FIVE LEVEL OF SEVEN HUNDRED TWENTY ONE DOLLARS TAKING INTO ACCOUNT A THREE PERCENT ANNUAL POPULATION GROWTH OVER THE FIFTEEN YEARS THROUGH NINETEEN EIGHTY FIVE THE FRANC ZONE HAD BEEN A HAVEN IN WHICH ECONOMIES EXPANDED AT AN AVERAGE ANNUAL RATE OF BETWEEN ONE PERCENT AND TWO PERCENT EXPORTS ROSE AND INFLATION WAS MODERATE COMPARED WITH NEIGHBORING COUNTRIES BUT ITS COMPETITIVENESS STARTED TO ERODE IN NINETEEN EIGHTY FIVE BECAUSE OF THE PINCER EFFECT OF FALLING COMMODITY PRICES AND THE APPRECIATION OF THE FRENCH FRANC AGAINST THE DOLLAR THE FRENCH UNIT HAS SURGED SEVENTY NINE PERCENT AGAINST THE DOLLAR SINCE THE DOLLAR'S PEAK AT THE BEGINNING OF NINETEEN EIGHTY FIVE OVER THE YEARS THE I. M. F. THE WORLD BANK AND MANY WESTERN GOVERNMENTS URGED A DEVALUATION BUT FRANC ZONE LEADERS WERE HOSTILE TO THE IDEA BECAUSE OF THE IMPACT IT WOULD HAVE ON THE LIVING STANDARDS OF CIVIL SERVANTS AND OTHER ELITE MEMBERS OF SOCIETY WHO LOVE THEIR IMPORTS IT'S NOT AN EXAGGERATION TO SAY THAT THE DEVALUATION WAS RESISTED ALL THESE YEARS BECAUSE OF THE IMPLICATIONS FOR THE COST OF MERCEDES BENZ CARS AND FRENCH CHAMPAGNE A WORLD BANK EXPERT SAID BUT WHEN FRANCE'S CENTER RIGHT COALITION LED BY PRIME MINISTER EDOUARD BALLADUR WAS ELECTED IN MAY NINETEEN NINETY THREE AND WAS FACED WITH A GAPING BUDGET DEFICIT IT DECIDED THE TIME HAD COME TO ACT I. M. F. AND WORLD BANK TEAMS ARE NOW HARD AT WORK IN THE FRANC ZONE COUNTRIES PERSUADING GOVERNMENTS TO ADOPT PAINFUL MEASURES THAT MUST ACCOMPANY THE DEVALUATION FRANCE ALREADY HAS INDICATED IT INTENDS TO WRITE OFF THE DEBT OF THE POOREST FRANC ZONE COUNTRIES AND PLANS TO GIVE FAST DISBURSING AID TO THE NEEDIEST THE I. M. F. AND THE WORLD BANK ARE ASSEMBLING AID PACKAGES AND ARE SUGGESTING WAYS TO STRENGTHEN ECONOMIC INSTITUTIONS IN THE AREA BOOSTED BY RECORD TRADING REVENUE BANKERS TRUST NEW YORK CORPORATION REPORTED SHARPLY HIGHER FOURTH QUARTER EARNINGS TWO OTHER BANKS BANK OF BOSTON CORPORATION AND KEYCORP ALSO TURNED IN IMPROVED RESULTS WHILE SOCIETY CORPORATION'S EARNINGS DECLINED BANKERS TRUST REPORTED EARNINGS MORE THAN DOUBLED WHILE BANK OF BOSTON PROFIT ROSE BY TWENTY NINE PERCENT AND KEYCORP FOURTEEN PERCENT ALTHOUGH SOCIETY WHICH PLANS TO MERGE WITH KEYCORP LATER THIS YEAR HAD A THIRTY FOUR PERCENT DECLINE IT WOULD HAVE SHOWN A FOURTEEN PERCENT GAIN IF AN EXTRAORDINARY RESTRUCTURING CHARGE WAS EXCLUDED WHILE WALL STREET HAS REACTED TO THE FOURTH QUARTER RESULTS OF OTHER BANKS WITH STOCK PRICE DEPRESSING PROFIT TAKING INVESTORS WERE IMPRESSED WITH BANKERS TRUST'S BETTER THAN EXPECTED RESULT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BANKERS TRUST COMMON SHARES ROSE ONE POINT ONE TWO FIVE DOLLARS OR ONE POINT FOUR PERCENT TO CLOSE AT SEVENTY NINE DOLLARS BANK OF BOSTON STOCK ROSE SEVENTY FIVE CENTS OR THREE POINT ONE PERCENT TO TWENTY FOUR DOLLARS AND SEVENTY FIVE CENTS BUT KEYCORP STOCK FELL TWELVE POINT FIVE CENTS OR ZERO POINT THREE PERCENT TO THIRTY SIX POINT SIX TWO FIVE DOLLARS AND SOCIETY STOCK ALSO DECLINED TWELVE POINT FIVE CENTS OR ZERO POINT FOUR PERCENT TO THIRTY DOLLARS AND TWENTY FIVE CENTS A SHARE THE INCREASED EARNINGS WERE DRIVEN BY THE CONTINUED WIDE PROFIT MARGINS BETWEEN THE BANKS' COST OF FUNDS AND THE RETURN THEY CAN EARN FROM LOANS AND OTHER ASSETS AS WELL AS BETTER THAN EXPECTED TRADING PROFITS AND REDUCTIONS IN LOAN LOSS PROVISIONS FOR BANKERS TRUST THE MOST OBVIOUS HIGHLIGHT WAS FOUR HUNDRED FORTY NINE MILLION DOLLARS IN TRADING REVENUE THE THIRD CONSECUTIVE QUARTERLY RECORD A BANK SPOKESMAN SAID TRADERS BENEFITED FROM CONTINUED VOLATILITY IN INTEREST RATES AND CURRENCY MARKETS WHILE THE STOCK MARKET FEARS THAT THE BANK IS OVERRELIANT ON TRADING ACTIVITIES WHICH ARE GENERALLY VIEWED AS A VOLATILE SOURCE OF EARNINGS BANKERS TRUST'S RESULTS WERE FAIRLY BROAD BASED FUND MANAGEMENT REVENUE REACHED A RECORD ONE HUNDRED EIGHTY FIVE MILLION DOLLARS UP SEVENTEEN PERCENT FROM THE PREVIOUS YEAR FEES AND COMMISSIONS CLIMBED THIRTY THREE PERCENT TO REACH ONE HUNDRED NINETY TWO MILLION DOLLARS ALTHOUGH NET INTEREST INCOME WAS NOMINALLY DOWN IT INCREASED BY FIVE PERCENT IF EXTRAORDINARY ITEMS ARE EXCLUDED QUOTE THEY HAVE BEEN BUILDING A WIDER REVENUE BASE QUOTE SAID JUDAH KRAUSHAAR AN ANALYST WITH MERRILL LYNCH AND COMPANY QUOTE AND THAT HELPS TO ASSURE INVESTORS THAT THEIR RESULTS ARE SUSTAINABLE QUOTE IN THE TRADITIONAL BANKING BUSINESS LENDING MONEY THE REPORTING BANKS BENEFITED FROM TWO INDUSTRY WIDE TRENDS LOAN GROWTH AND DECREASED LOAN LOSS PROVISIONS THOSE CHANGES WERE MORE THAN ENOUGH TO OVERCOME FLAT OR SLIGHTLY DECREASING NET INTEREST RATE MARGINS LOAN LOSS PROVISIONS WERE CLEARLY A POWERFUL FACTOR IN THE QUARTER BANKERS TRUST'S PROVISION WAS TWENTY THREE MILLION DOLLARS DOWN FROM FIFTY MILLION DOLLARS IN THE YEAR EARLIER PERIOD AT BANK OF BOSTON THE PROVISION WAS TEN MILLION DOLLARS DOWN FROM TWENTY THREE MILLION DOLLARS THE PROVISION AT CLEVELAND BASED SOCIETY WAS THIRTEEN MILLION DOLLARS DOWN FROM THIRTY ONE MILLION DOLLARS WHILE PROVISIONS WERE FALLING LENDING WAS GROWING SOCIETY'S LOANS OUTSTANDING GREW AT A TWELVE PERCENT ANNUALIZED RATE DURING THE QUARTER AND KEYCORP'S AT A FIVE POINT FIVE PERCENT RATE ACCORDING TO ANALYSTS THE MOST IMPORTANT RESTRUCTURING CHARGES WERE RELATED TO THE KEYCORP SOCIETY MERGER SOCIETY REPORTED A FORTY MILLION DOLLAR CHARGE AS A RESULT OF THE MERGER EXCLUDING THE CHARGE IT WOULD HAVE EARNED NINETY SEVEN MILLION DOLLARS OR EIGHTY TWO CENTS PER SHARE IN THE QUARTER KEYCORP WHICH IS BASED IN ALBANY N. Y. ALSO HAD A NUMBER OF RESTRUCTURING CHARGES SOME OF THEM A RESULT OF THE MERGER WITHOUT THE CHARGES KEYCORP'S FOURTH QUARTER EARNINGS WOULD HAVE BEEN A RECORD ONE HUNDRED SIX MILLION DOLLARS OR ONE DOLLAR AND ONE CENT PER SHARE GENERAL ELECTRIC COMPANY'S FOURTH QUARTER EARNINGS ROSE TEN PERCENT TO ONE POINT FOUR EIGHT BILLION DOLLARS AND ANALYSTS SAW SIGNS OF A RECOVERING ECONOMY IN THE IMPROVED SALES PACE OF CERTAIN G. E. BUSINESSES FOURTH QUARTER REVENUE JUMPED TWELVE PERCENT TO EIGHTEEN POINT OH NINE BILLION DOLLARS FROM SIXTEEN POINT TWO BILLION DOLLARS A YEAR EARLIER THE INCREASE WAS SIGNIFICANTLY GREATER THAN THE THREE PERCENT TO FOUR PERCENT INCREASES G. E. POSTED IN THE PRIOR THREE PERIODS QUOTE THAT'S A FAVORABLE TREND QUOTE SAID RUSSELL LEAVITT AN ANALYST AT SALOMON BROTHERS THIS SUGGESTS GOOD SALES AND EARNINGS IMPROVEMENTS THIS YEAR HE SAID DECLARING THE COMPANY'S LATEST RESULTS A VERY GOOD PERFORMANCE G. E.'S FOURTH QUARTER EARNINGS WHICH AMOUNTED TO ONE DOLLAR AND SEVENTY THREE CENTS A SHARE WERE SLIGHTLY BETTER THAN WALL STREET ANALYSTS' CONSENSUS ESTIMATE OF ONE DOLLAR AND SIXTY NINE CENTS COMPILED BY ZACKS INVESTMENT RESEARCH G. E.'S PROFIT IN THE YEAR EARLIER PERIOD WAS ONE POINT THREE FOUR BILLION DOLLARS OR ONE DOLLAR AND FIFTY SEVEN CENTS A SHARE G. E. SAID TWO OF THE COMPANY'S ECONOMY SENSITIVE BUSINESSES PLASTICS AND APPLIANCES HAD GOOD GROWTH COMPARED WITH A YEAR AGO A SPOKESMAN SAID THE PRETTY GOOD MOMENTUM IN THE SO CALLED SHORT CYCLE BUSINESSES SIGNALS A STRENGTHENING ECONOMY BASED IN FAIRFIELD CONNECTICUT G. E.'S OTHER BUSINESSES INCLUDE MEDICAL EQUIPMENT LIGHTING FINANCIAL SERVICES AND BROADCASTING IN THE FIRST THREE QUARTERS OF THIS YEAR MUCH OF G. E.'S SALES AND EARNINGS GAINS CAME FROM THE SO CALLED LONG CYCLE BUSINESS SUCH AS POWER SYSTEMS WHERE THE TIME BETWEEN ORDER AND DELIVERY IS LONG AND THUS THE BUSINESSES AREN'T EASILY AFFECTED BY THE VAGARIES OF THE ECONOMY THE LATEST RESULTS BROUGHT FULL YEAR NET INCOME TO FIVE POINT ONE EIGHT BILLION DOLLARS OR SIX DOLLARS AND SIX CENTS A SHARE BEFORE THE EFFECTS OF CERTAIN ACCOUNTING CHANGES THAT WAS UP TEN PERCENT FROM THE NINETEEN NINETY TWO PROFIT OF FOUR POINT SEVEN THREE BILLION DOLLARS OR FIVE DOLLARS AND FIFTY ONE CENTS A SHARE WITHOUT THE RESTRUCTURING CHARGES RELATED TO THE COMPANY'S DIVESTITURE OF ITS AEROSPACE BUSINESS LAST YEAR NET INCOME ROSE SIXTEEN PERCENT FROM NINETEEN NINETY TWO REVENUE ROSE SIX PERCENT TO SIXTY POINT FIVE SIX BILLION DOLLARS FROM FIFTY SEVEN POINT OH SEVEN BILLION DOLLARS ELEVEN OF G. E.'S TWELVE BUSINESSES POSTED HIGHER EARNINGS FROM CONTINUING OPERATIONS COMPARED WITH A YEAR AGO TEN OF THEM POSTED DOUBLE DIGIT INCREASES LED BY FINANCIAL SERVICES BROADCASTING AND PLASTICS G. E. SAID THAT AS IT EXPECTED THE AIRCRAFT ENGINE BUSINESS POSTED MUCH LOWER EARNINGS THAN A YEAR AGO G. E. SAID ALL BUSINESSES EXCEPT AIRCRAFT ENGINE POSTED INCREASED OPERATING PROFIT MARGIN BRINGING THE OVERALL OPERATING MARGIN TO A RECORD TWELVE POINT FIVE PERCENT UP FROM NINETEEN NINETY TWO'S COMPARABLE ELEVEN POINT FIVE PERCENT G. E.'S STOCK CLOSED AT ONE HUNDRED EIGHT DOLLARS AND FIFTY CENTS A SHARE DOWN TWENTY FIVE CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE CANADIAN PRIMARY STEEL PRODUCTION TOTALED TWO HUNDRED FIFTY EIGHT THOUSAND FIVE HUNDRED FIFTY EIGHT METRIC TONS IN THE WEEK ENDED SATURDAY A FIVE POINT SIX PERCENT INCREASE FROM TWO HUNDRED FORTY FOUR THOUSAND EIGHT HUNDRED TWELVE TONS IN THE PREVIOUS WEEK BUT A THREE POINT THREE PERCENT DECLINE FROM TWO HUNDRED SIXTY SEVEN THOUSAND FOUR HUNDRED FOUR TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO TWO THOUSAND TWO HUNDRED FOUR POINT SIX POUNDS RESIDENTS OF THIS ECONOMICALLY DISTRESSED STATE ARE LIKELY TO FACE HIGHER TAXES TO COVER SOME OF THE REPAIRS FROM MONDAY'S DEVASTATING EARTHQUAKE BUT OFFICIALS HERE AND IN WASHINGTON ARE STILL GROPING FOR ACCEPTABLE LONG TERM SOLUTIONS TO THE PROBLEM OF PAYING A RECONSTRUCTION BILL THAT COULD CLIMB AS HIGH AS THIRTY BILLION DOLLARS COMPARED WITH THE NINETEEN EIGHTY NINE LOMA PRIETA EARTHQUAKE IN NORTHERN CALIFORNIA THIS WEEK'S QUAKE CAUSED MUCH MORE EXTENSIVE DAMAGE TO SCHOOLS ROADS AND OTHER PUBLIC FACILITIES IN THE DENSELY POPULATED SAN FERNANDO VALLEY AND NEARBY COMMUNITIES THE PROSPECT OF SQUEEZING MOST OF THE REPAIR FUNDS FROM THE STATE BUDGET ALREADY HEADED FOR A FIVE BILLION DOLLAR DEFICIT BEFORE THE NATURAL DISASTER STRUCK FRIGHTENS MANY ECONOMISTS AND STATE POLITICIANS STATE AND FEDERAL RELIEF AGENCIES ARE QUOTE TERRIFIC AT TAKING CARE OF PEOPLE'S IMMEDIATE NEEDS QUOTE SAID ALAN KREDITOR A PROFESSOR OF URBAN PLANNING AT THE UNIVERSITY OF SOUTHERN CALIFORNIA WHO STUDIED THE AFTERMATH OF THE NINETEEN EIGHTY NINE QUAKE BUT WE'RE NOT VERY GOOD AT COMING UP WITH POSTCRISIS REHABILITATION PLANS THAT PROVIDE CONTINUING AID TO BUSINESSES AND LONG TERM REPAIR BUDGETS FOR PUBLIC FACILITIES LEARNING FROM PAST MISTAKES THE FEDERAL EMERGENCY MANAGEMENT AGENCY AND OTHER FEDERAL AGENCIES ARE QUICKLY FUNNELING EMERGENCY HELP TO THE CITY JUST YESTERDAY ELEVEN FEDERAL EMERGENCY CENTERS OPENED THEIR DOORS PRESIDENT CLINTON ALSO RELEASED AN ADDITIONAL ONE HUNDRED MILLION DOLLARS FOR IMMEDIATE ROAD REPAIRS AND AUTHORIZED THE FEDERAL GOVERNMENT TO CONTINUE PAYING ONE HUNDRED PERCENT OF CERTAIN EMERGENCY SHELTER AND FOOD COSTS FOR HOMELESS RESIDENTS BUT THE CLINTON ADMINISTRATION ALONG WITH STATE AND LOCAL OFFICIALS FACES DIFFICULT CHOICES IN COMING UP WITH A FINANCING PLAN THAT WON'T SIGNIFICANTLY INCREASE THE FEDERAL DEFICIT AND AVOIDS HITTING ECONOMICALLY HARD PRESSED CALIFORNIA WITH A NEW ROUND OF HEFTY SALES AND GASOLINE TAXES A MAJOR PROBLEM IS THAT RELIABLE DAMAGE ESTIMATES DON'T YET EXIST WHILE GOVERNOR PETE WILSON HAS PROJECTED THAT QUAKE DAMAGE COULD CONSERVATIVELY BE FIFTEEN BILLION DOLLARS TO THIRTY BILLION DOLLARS MANY EXPERTS ARE SKEPTICAL SOME EVEN CALL THAT ESTIMATE A PLOY TO PRESSURE WASHINGTON FOR MAXIMUM ASSISTANCE I HAVE NO IDEA HOW THE GOVERNMENT JUSTIFIES THOSE FIGURES SAID JIM LEWIS DIRECTOR OF THE STATE ASSEMBLY OFFICE OF RESEARCH AT THIS POINT NOBODY REALLY KNOWS WHAT THE DAMAGES ARE STILL STATE AND CITY COFFERS CAN'T POSSIBLY ABSORB ALL THE COSTS THE STATE TRANSPORTATION DEPARTMENT'S HIGHWAY ACCOUNT FOR EXAMPLE NOW STANDS AT ONE HUNDRED THIRTY MILLION DOLLARS AFTER A STEADY EIGHTEEN MONTH DECLINE SOME OUTSIDE ENGINEERS SAID THE EVENTUAL COST OF REBUILDING DAMAGED ROADWAYS COULD BE FIVE OR SIX TIMES THAT AMOUNT LIKEWISE STATE LEGISLATIVE ANALYSTS SAID CALIFORNIA ONLY HAS FIFTY MILLION DOLLARS AVAILABLE TO REPAIR THE LOCAL LIBRARIES COURTHOUSES AND OTHER CITY AND COUNTY BUILDINGS THAT WERE DAMAGED THOUGH LOS ANGELES MAYOR RICHARD RIORDAN HASN'T YET PROPOSED ANY SPECIFIC FINANCING PLAN THE CITY NEEDS AUTHORIZATION FROM STATE LAWMAKERS TO RAISE TAXES SO FAR GOVERNOR WILSON HAS SHIED AWAY FROM THE IDEA OF IMPOSING NEW TAXES IN AN ELECTION YEAR FOCUSING INSTEAD ON SHIFTING MONEY BETWEEN STATE ACCOUNTS AND CALLING FOR WASHINGTON TO FOOT NEARLY THE ENTIRE BILL BUT CONGRESS IS LIKELY TO RESIST THAT APPROACH AND MANY HERE BELIEVE THE GOVERNOR WILL HAVE NO CHOICE BUT TO CALL FOR NEW TAXES EVEN IF THAT PROMPTS A BITTER FIGHT IN THE STATE LEGISLATURE ASSEMBLY SPEAKER WILLIE BROWN JUNIOR THIS WEEK CAME OUT IN FAVOR OF RAISING THE SALES TAX TO PAY FOR REPAIRS UNLESS CALIFORNIA DEMONSTRATES THAT IT'S WILLING TO ABSORB HIGHER TAXES SAID GOETZ WOLFF AN ECONOMIC CONSULTANT IT'S HARD TO MAKE THE ARGUMENT THAT THE FEDERAL GOVERNMENT SHOULD SPEND AT A HIGHER RATE THAN NOW ENVISIONED JOHN LANDIS AN ASSOCIATE PROFESSOR OF CITY PLANNING AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY AGREES QUOTE ANOTHER INCREASE IN STATE TAXES SEEMS INEVITABLE QUOTE MEASURES ALREADY BEING CONSIDERED BY CALIFORNIA LAWMAKERS RANGE FROM A QUARTER CENT SALES TAX INCREASE TO AN ADDITIONAL GASOLINE TAX OF TWO CENTS TO FIVE CENTS A GALLON THE CURRENT SALES TAX RANGES FROM SEVEN POINT TWO FIVE PERCENT TO EIGHT POINT FIVE OH PERCENT DEPENDING ON LOCAL ADDITIONS IN ADDITION STATE TREASURER KATHLEEN BROWN HAS SUGGESTED THE IMMEDIATE SALE OF TWO HUNDRED FORTY MILLION DOLLARS IN BONDS FOR WHICH AUTHORITY ALREADY EXISTS MEMBERS OF THE CALIFORNIA LEGISLATURE HAVE SUGGESTED SEEKING CALIFORNIA VOTERS' APPROVAL THIS JUNE FOR AN ADDITIONAL TWO BILLION DOLLARS OF NEW BOND AUTHORITY FOR QUAKE RELATED REPAIRS BUT SUCH MEASURES WHICH WOULD BE PAINFUL TO THE STATE'S RAVAGED ECONOMY MAY STILL FALL SHORT OF FINANCING THE RECONSTRUCTION UNDER CALIFORNIA'S CONSTITUTION REVENUE RAISED BY A FUEL TAX CAN ONLY BE USED FOR HIGHWAY REPAIRS THAT LEAVES UNANSWERED THE QUESTION OF FUNDING TO REBUILD SCHOOLS WATER AND SEWER LINES AND THE THOUSANDS OF HOMES AND BUSINESSES BADLY DAMAGED BY THE QUAKE HOMEOWNERS HAVE ACCESS TO LOW INTEREST FEDERAL LOANS TO MAKE REPAIRS BUT ECONOMISTS SAY THAT OWNERS OF SMALL BUSINESSES AND APARTMENT BUILDINGS THROUGHOUT THE REGION MAY NOT BE ABLE TO RELY ON SUCH FEDERAL HELP AND MAY NEED SPECIAL STATE ASSISTANCE MEANWHILE DAMAGE FROM THE QUAKE CONTINUED TO CLIMB EIGHTEEN HOSPITALS HAVE BEEN EVACUATED OR FORCED TO CURTAIL SERVICE BECAUSE OF STRUCTURAL OR OTHER DAMAGE WITH RAIN FORECAST FOR THE WEEKEND THOUSANDS OF PEOPLE STILL WERE CAMPED OUT IN PARKS YARDS COMMUNITY CENTERS AND EVEN CARS PUBLIC HEALTH EXPERTS WARNED THAT MANY RISK ILLNESSES CAUSED BY BACTERIA FROM GARBAGE AND RAW SEWAGE IN NORTHERN CALIFORNIA THE LOMA PRIETA EARTHQUAKE CAUSED DAMAGE ESTIMATED AT AS MUCH AS SEVEN BILLION DOLLARS LESS THAN ONE BILLION DOLLARS OF WHICH WAS COVERED BY PRIVATE INSURANCE WHILE THE STATE RAISED SEVEN HUNDRED NINETY FOUR POINT FIVE MILLION DOLLARS FROM A THIRTEEN MONTH QUARTER CENT SALES TAX INCREASE PASSED SOON AFTER THAT QUAKE THE SAME TAX IN TODAY'S ECONOMY WOULD YIELD ABOUT ONE HUNDRED MILLION DOLLARS LESS ACCORDING TO STATE LEGISLATIVE ESTIMATES MOREOVER LEGISLATORS AND OTHERS ARGUE THAT ADDITIONAL TAXES COULD DELAY THE STATE'S ECONOMIC RECOVERY WITH CALIFORNIA IN A FOUR YEAR RECESSION AND ALREADY FEELING THE IMPACT OF SEVERAL SALES TAX INCREASES INITIAL COMMENTS SUGGEST TO ME THAT THE NEEDED TWO THIRDS VOTE CAN'T BE ATTAINED FOR ANOTHER TAX INCREASE SAID STATE SENATOR BILL LOCKYER A DEMOCRAT WHO LATER THIS MONTH WILL BECOME PRESIDENT PRO TEM OF THE STATE SENATE OFFICIALS AT THE LOS ANGELES UNIFIED SCHOOL DISTRICT SAY DAMAGE TO SCHOOLS COULD REACH SEVEN HUNDRED MILLION DOLLARS ABOUT ONE HUNDRED OF THE DISTRICT'S SIX HUNDRED FORTY SCHOOLS WERE DAMAGED SOME SEVERELY AND ABOUT TWO HUNDRED THOUSAND OF ITS SIX HUNDRED FORTY THOUSAND STUDENTS DON'T HAVE WORKING CLASSROOMS THERE IS NO MONEY IN THE SCHOOL DISTRICT FOR THIS SAID LETICIA QUEZADA SCHOOL BOARD PRESIDENT SHE ADDED THAT WHILE SHE PLANNED TO ASK THE STATE FOR MONEY SHE WAS BOTHERED BY WHAT APPEARS TO BE GROWING DISAGREEMENT OVER HOW THE STATE AND FEDERAL GOVERNMENT WILL SHARE DISASTER RELIEF COSTS IT'S DISHEARTENING TO ME AS A LOCAL OFFICIAL BECAUSE NOW THEY'LL GO BACK AND FORTH AND MEANWHILE OUR KIDS CAN'T GO TO SCHOOL MS. QUEZADA SAID FOR THE ADMINISTRATION AND CONGRESSIONAL LEADERS THE PRESSURE TO REDUCE THE DEFICIT CLEARLY IS MUCH GREATER THAN IT WAS FOLLOWING THE LOMA PRIETA QUAKE DESPITE MR. CLINTON'S PERSONAL PLEDGE TO CONSIDER REDUCING OR ELIMINATING ALTOGETHER LOCAL MATCHING FUND REQUIREMENTS FOR MANY OF THE REPAIRS THE FEDERAL GOVERNMENT'S EMERGENCY DISASTER ACCOUNTS WERE NEARLY DRAINED BY THE MIDWEST FLOOD LAST YEAR AND EFFORTS TO HELP SOUTH FLORIDA RECOVER FROM HURRICANE ANDREW IN NINETEEN NINETY TWO NORMALLY THE FEDERAL GOVERNMENT PAYS SEVENTY FIVE PERCENT AND STATE AND LOCAL GOVERNMENTS PAY TWENTY FIVE PERCENT OF THE COST OF REPAIRING PUBLIC FACILITIES AND INFRASTRUCTURE FOLLOWING A DISASTER THE FEDERAL LEVEL CAN BE INCREASED BY THE PRESIDENT TO NINETY PERCENT AND IN SOME INSTANCES HAS RISEN TO ONE HUNDRED PERCENT OF CERTAIN COSTS THUS WHILE SOME STATE LAWMAKERS SAY THEY ARE STARTING TO CONSIDER NEW TAXES AND BOND FINANCING OTHERS SUGGEST A DIFFERENT STRATEGY THAT ONE SAYS TIM GAGE CHIEF CONSULTANT TO THE ASSEMBLY'S WAYS AND MEANS COMMITTEE IS TO JUST TOUGH IT OUT AND SEE HOW MUCH THE FEDS GIVE US FREDERICK ROSE CONTRIBUTED TO THIS ARTICLE MINING HOUSE ANGLO AMERICAN CORPORATION OF SOUTH AFRICA SAID NET INCOME FOR ITS FIVE GOLD MINES GREW TWO POINT TWO PERCENT TO TWO HUNDRED SEVENTY FIVE POINT ONE MILLION RAND EIGHTY POINT SIX MILLION DOLLARS IN THE FOURTH QUARTER OF NINETEEN NINETY THREE FROM TWO HUNDRED SIXTY NINE POINT TWO MILLION RAND IN THE THIRD QUARTER ANGLO AMERICAN'S LARGEST MINE FREE STATE CONSOLIDATED GOLD MINES LIMITED KNOWN AS FREEGOLD SHOWED A FOUR POINT SIX PERCENT INCREASE IN NET INCOME TO ONE HUNDRED TWENTY SEVEN MILLION RAND IN THE FOURTH QUARTER FROM ONE HUNDRED TWENTY ONE POINT FOUR MILLION RAND ATCHISON CASTING CORPORATION SAID IT SIGNED A LETTER OF INTENT TO PURCHASE CLOSELY HELD PROSPECT FOUNDRY INCORPORATED OF MINNEAPOLIS TERMS WEREN'T DISCLOSED ATCHISON CASTING SAID THE DEAL IS SUBJECT TO COMPLETION OF DUE DILIGENCE AND THE SIGNING OF A DEFINITIVE ACCORD PROSPECT FOUNDRY PRODUCES IRON CASTINGS UNIVEST CORPORATION'S UNION NATIONAL BANK UNIT REACHED AN AGREEMENT TO ACQUIRE CONTINENTAL BANK'S PLUMSTEADVILLE PENNSYLVANIA BRANCH OFFICE TERMS WEREN'T DISCLOSED UNIVEST OFFERS FINANCIAL SERVICES TO SIXTEEN MONTGOMERY PENNSYLVANIA AND BUCKS COUNTY COMMUNITIES CONTINENTAL BANK IS A UNIT OF MIDLANTIC CORPORATION IN A NEWS RELEASE UNIVEST SAID THE ACQUISITION WOULD INCREASE UNION NATIONAL'S DEPOSITS BY ABOUT SIXTEEN MILLION DOLLARS SUBJECT TO REGULATORY APPROVAL UNION NATIONAL PLANS TO ASSUME COMPLETE OPERATIONS OF THE BRANCH IN THE SECOND QUARTER COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE AS PERSONAL COMPUTER COMPANIES GO A. S. T. RESEARCH INCORPORATED IS SOMETHING OF A MARATHON RUNNER WHILE MANY UPSTART RIVALS GATEWAY TWO THOUSAND FOR EXAMPLE OR DELL COMPUTER CORPORATION HAVE SEEN SALES RACE FORWARD IN DRAMATIC SPURTS A. S. T. HAS PLODDED ON METHODICALLY WHILE A. S. T. MAY LACK THE SPRINTER'S GLAMOUR IT HAS SURVIVED TO BECOME ONE OF THE BIGGEST P. C. MAKERS IN THE COUNTRY ITS LATEST EARNINGS UNDERSCORE ITS GOOD HEALTH IN THE FISCAL SECOND QUARTER ENDED JANUARY FIRST ITS PROFIT ROSE TWENTY TWO POINT SIX PERCENT TOPPING ANALYSTS' ESTIMATES IN NASDAQ STOCK MARKET TRADING LATE YESTERDAY A. S. T. WAS QUOTED AT TWENTY NINE POINT ONE TWO FIVE DOLLARS UP FOUR POINT THREE SEVEN FIVE DOLLARS A. S. T.'S REVENUE JUMPED NINETY FIVE PERCENT TO SIX HUNDRED SEVENTY SEVEN MILLION DOLLARS FROM THREE HUNDRED FORTY SIX POINT THREE MILLION DOLLARS A YEAR AGO REFLECTING STRONG GROWTH WORLD WIDE AND THE COMPANY'S ACQUISITION OF TANDY CORPORATION'S P. C. BUSINESS LAST SUMMER LIKE OTHER BIG P. C. MAKERS A. S. T. HAS BENEFITED AS CUSTOMERS SHIFT TO BRAND NAME P. C.S FROM LESSER KNOWN CLONES QUOTE FROM A MOMENTUM PERSPECTIVE THEY HEAD INTO NINETEEN NINETY FOUR IN INCREDIBLY GOOD SHAPE QUOTE SAYS STEVEN ESKENAZI PRINCIPAL IN ALEXANDER BROWN AND SONS A. S. T. REPORTED FISCAL SECOND QUARTER NET INCOME OF SEVENTEEN POINT NINE MILLION DOLLARS OR FIFTY FOUR CENTS A SHARE UP FROM FOURTEEN POINT SIX MILLION DOLLARS OR FORTY SIX CENTS A SHARE IN THE YEAR AGO PERIOD FINANCIAL ANALYSTS HAD EXPECTED NET INCOME OF ABOUT FORTY FIVE CENTS A SHARE ANALYSTS SAY A. S. T.'S PROFIT WAS HIGHER THAN ANTICIPATED BECAUSE THE COMPANY DIGESTED ITS TANDY ACQUISITION WITH UNEXPECTED SPEED THE COMPANY TOOK A ONETIME PRETAX CHARGE OF ONE HUNDRED TWENTY FIVE MILLION DOLLARS IN THE FISCAL FOURTH QUARTER TO COVER THE ONE HUNDRED SEVENTY FIVE MILLION DOLLAR TRANSACTION SAFI QURESHEY A. S. T.'S CO FOUNDER AND CHIEF EXECUTIVE OFFICER SAYS THE ACQUISITION GAVE HIS COMPANY THE MANUFACTURING CAPACITY IT NEEDED LAST YEAR TO KEEP PACE WITH INCREASED DEMAND WE SEE NINETY FOUR TO BE A STRONG YEAR MR. QURESHEY ADDS WE WILL CONTINUE TO POSITION A. S. T. VERY WELL AS A TIER ONE COMPANY THAT IS VERY FOCUSED UNDER MR. QURESHEY A. S. T. HAS QUIETLY MADE FORMIDABLE STRIDES IN MARKET SHARE BY MAINTAINING A BROAD LINE OF UPDATED PRODUCTS AND DISTRIBUTING THEM WIDELY LAST YEAR A. S. T.'S U. S. SHIPMENTS NOT INCLUDING TANDY'S GREW SIXTY SIX PERCENT TO FIVE HUNDRED THIRTY THOUSAND MACHINES SAYS INTERNATIONAL DATA CORPORATION A FRAMINGHAM MASSACHUSETTS MARKET RESEARCH FIRM INCLUDING TANDY'S SALES A. S. T. WAS THE NUMBER FIVE P. C. MAKER IN THE U. S. LAST YEAR JUST AHEAD OF DELL A. S. T.'S GOAL LIKE THOSE OF MOST OTHER P. C. MAKERS IS TO CONTINUE GRABBING ENOUGH EXTRA MARKET SHARE TO OFFSET FALLING PROFIT MARGINS AT ITS PRESENT COURSE A. S. T. COULD ONE DAY RIVAL THE VOLUME OF THE BIG THREE P. C. MAKERS INTERNATIONAL BUSINESS MACHINES CORPORATION APPLE COMPUTER INCORPORATED AND COMPAQ COMPUTER CORPORATION SOME OBSERVERS SAY MR. QURESHEY IS A VERY DETERMINED CHARACTER AND IS PRETTY INTENT ON WINNING AT THIS GAME SAYS STEVEN RAYMUND CHAIRMAN AND CHIEF EXECUTIVE OF TECH DATA CORPORATION A CLEARWATER FLORIDA DISTRIBUTOR OF COMPUTERS ADDS KENNETH R. WATERS PRESIDENT OF MICROAGE INCORPORATED A TEMPE ARIZONA DISTRIBUTOR HE'S CERTAINLY DOING THE THINGS HE NEEDS TO DO TO BE THERE IN THE EVENT ONE OF THE OTHER COMPANIES STUMBLES NO ONE WOULD HAVE PEGGED A. S. T. AS A CONTENDER FOURTEEN YEARS AGO WHEN MR. QURESHEY AND CO FOUNDERS ALBERT WONG AND THOMAS YUEN LAUNCHED THE FIRM AS A TINY MAKER OF ADD ONS TO I. B. M.'S ORIGINAL P. C. JUST BEFORE THE MARKET FOR ADD ONS CRATERED WHEN I. B. M. AND OTHERS STARTED SHIPPING P. C.S WITH MORE FEATURES A. S. T. SAW ITS VULNERABILITY AND STARTED MAKING P. C.S AS WELL FOLLOWING A STRONG START A. S. T. POSTED A LOSS IN FISCAL NINETEEN EIGHTY NINE AFTER AMONG OTHER THINGS FAILING QUICKLY TO MATCH A NEW FEATURE OFFERED BY COMPAQ IN A FALLING OUT THAT MR. QURESHEY LIKENS TO A DIVORCE MESSRS WONG AND YUEN DEPARTED THE COMPANY LEAVING MR. QURESHEY TO DIRECT A. S. T. AHEAD OF SMALL RIVALS AN ENGINEER BY TRAINING MR. QURESHEY MOVED TO DIFFERENTIATE A. S. T. BY EMPHASIZING TECHNOLOGICAL ADVANCES IN ITS PRODUCTS THE COMPANY FOR EXAMPLE JOINED COMPAQ IN BEATING APPLE AND I. B. M. TO THE PUNCH BY COMING OUT WITH A NOTEBOOK COMPUTER A. S. T. ALSO INTRODUCED A LINE OF P. C.S WITH REPLACEABLE MICROPROCESSORS ALLOWING CUSTOMERS TO BEEF UP THEIR MACHINES WITHOUT HAVING TO BUY ANOTHER MR. QURESHEY ALSO MADE SURE THAT A. S. T. FORMED CLOSE LINKS WITH BIG DISTRIBUTORS LIKE TECH DATA AND MERISEL INCORPORATED WHICH ARE INVALUABLE ALLIES BECAUSE THEY OUTFIT LARGE CORPORATIONS WITH HUNDREDS OF COMPUTERS TWO YEARS AGO HE DEMONSTRATED FORESIGHT BY EXPANDING HIS BUSINESS ORIENTED PRODUCT LINE TO INCLUDE THE THEN UNTAPPED CONSUMER MARKET BY LAUNCHING ITS ADVANTAGE LINE OF CONSUMER P. C.S INTO RETAIL CHAINS LIKE CIRCUIT CITY AND COMPUTER CITY A. S. T. WAS READY WHEN CONSUMER P. C. SALES MUSHROOMED LAST YEAR AMID FALLING P. C. PRICES AND THE ADVENT OF MULTIMEDIA FUNCTIONS FOR FULL MOTION VIDEO AND SOUND IN THE SECOND QUARTER A. S. T. SAYS ITS CONSUMER SALES ACCOUNTED FOR THIRTY EIGHT PERCENT OF TOTAL FOUR HUNDRED FIFTY ONE MILLION DOLLAR DOMESTIC SALES COMPARED WITH LESS THAN TWENTY PERCENT AT THE SAME TIME A YEAR AGO A. S. T.'S INTERNATIONAL BUSINESS IS ALSO PERFORMING NICELY AFTER A SLOW START IN THE COMPETITIVE EUROPEAN MARKET TOTAL INTERNATIONAL SALES INCREASED FIFTY SIX PERCENT TO TWO HUNDRED TWENTY SIX MILLION DOLLARS IN THE SECOND QUARTER WITH EUROPEAN REVENUE UP ONE HUNDRED THIRTEEN PERCENT DURING THE QUARTER ALTHOUGH THE EUROPEAN ECONOMY REMAINS SLUGGISH A. S. T. SAYS IT HAS EXPANDED ITS CUSTOMER BASE THROUGHOUT THE CONTINENT IN ASIA THE COMPANY OPENED A NEW SUBSIDIARY IN MALAYSIA AND SIGNED AN AGREEMENT IN JAPAN WITH MITSUI BUSSAN DIGITAL TO SUPPLY P. C.S TO BUSINESS AND HOME USERS A. S. T. ALSO DOMINATES SALES IN CHINA WHERE IT BROKE NEW GROUND BY BECOMING ONE OF THE FIRST MAJOR P. C. COMPANIES TO EXPAND THERE THE CHINESE MARKET IN TEN YEARS COULD BE THE SIZE OF EUROPE SAYS MICHAEL PICKETT CHAIRMAN AND CHIEF EXECUTIVE OF MERISEL HOWEVER A. S. T. ISN'T IMMUNE FROM A RENEWED P. C. PRICING WAR WHICH WOULD DRAG PROFIT MARGINS DOWN FOR ALL THE COMPANIES A. S. T. FACES RENEWED EFFORTS BY I. B. M. DIGITAL EQUIPMENT CORPORATION AND HEWLETT PACKARD COMPANY TO WIN MARKET SHARE IN INTEL BASED P. C.S AND IT FACES A LINE OF P. C.S FROM APPLE AND I. B. M. THAT USE A NEW CHIP CALLED THE POWERPC BUT MR. QURESHEY SAYS HIS COMPANY'S P. C. VOLUME IS INCREASING SO MUCH THAT MARGINS SHOULDN'T BE TREMENDOUSLY AFFECTED ASIDE FROM THE CONCERN ABOUT MARGINS QUOTE THERE ARE VERY FEW ISSUES LEFT FOR A. S. T. TO ADDRESS QUOTE ANALYST MR. ESKENAZI SAYS GREAT EAGLE HOLDINGS LIMITED A HONG KONG PROPERTY DEVELOPER AGREED TO BUY A FIVE HUNDRED ROOM HOTEL FOR TWO POINT OH THREE BILLION HONG KONG DOLLARS TWO HUNDRED SIXTY TWO POINT EIGHT MILLION DOLLARS FROM AN UNIDENTIFIED SELLER GREAT EAGLE WILL OPERATE THE HONG KONG RENAISSANCE HOTEL UPON COMPLETION OF THE PURCHASE EXPECTED AUGUST FIRST THE KOWLOON HOTEL OPENED IN NINETEEN EIGHTY EIGHT AND HAD PRETAX INCOME OF H. K. SIXTY FIVE MILLION DOLLARS IN THE EIGHT MONTHS ENDED IN NOVEMBER GREAT EAGLE SAID ACCORDING TO DATA SUPPLIED BY THE SELLER GREAT EAGLE SAID THE HOTEL GENERATED NET INCOME OF H. K. SEVENTY TWO MILLION DOLLARS AND H. K. SEVENTY EIGHT MILLION DOLLARS IN THE YEARS ENDED MARCH THIRTY FIRST NINETEEN NINETY TWO AND NINETEEN NINETY THREE RESPECTIVELY GREAT EAGLE NOTED THAT IT PAID H. K. THREE HUNDRED FIFTY MILLION DOLLARS UPON SIGNING THE PURCHASE AGREEMENT AND WILL PAY A FURTHER H. K. TWO HUNDRED FIFTY MILLION DOLLARS APRIL SEVENTH WITH THE BALANCE DUE IN AUGUST THE PROVINCE OF ONTARIO PLANS TO ISSUE MORE THAN ONE BILLION CANADIAN DOLLARS SEVEN HUNDRED SIXTY THREE POINT THREE MILLION U. S. DOLLARS OF DEBT SECURITIES OVER THE NEXT FEW WEEKS THE FINANCINGS WILL INCLUDE THE PROVINCE'S FIRST GLOBAL U. S. DOLLAR FLOATING RATE NOTE THE ONTARIO GOVERNMENT SAID IT WILL DO THE FINANCINGS WHEN MARKET CONDITIONS ALLOW BOND TRADERS EXPECT THE ISSUES NEXT WEEK GOVERNMENT OFFICIALS SAID PROCEEDS OF THE ISSUES WILL COVER THE PROVINCE'S SIX HUNDRED MILLION CANADIAN DOLLARS BORROWING REQUIREMENT FOR THE FISCAL YEAR ENDING MARCH NINETEEN NINETY FOUR AND PREFUND BORROWING NEEDS FOR THE NEXT FISCAL YEAR THEY DIDN'T PROVIDE DETAILS OF THE SIZE OF THE OFFERINGS BUT PAST GLOBAL ISSUES BY THE PROVINCE HAVE RAISED MORE THAN ONE BILLION CANADIAN DOLLARS EACH THE U. S. GLOBAL NOTE ISSUE WILL BE JOINTLY LEAD MANAGED BY LEHMAN BROTHERS AND MERRILL LYNCH AND COMPANY OF NEW YORK WHILE A CANADIAN DOLLAR GLOBAL ISSUE WILL BE UNDERWRITTEN BY A GROUP HEADED BY GOLDMAN SACHS AND COMPANY SPORTS FANS IN TORONTO MAY LOSE A PROMISED NATIONAL BASKETBALL ASSOCIATION TEAM BECAUSE THE PROVINCIAL GOVERNMENT THINKS IT CAN MAKE MORE MONEY FROM GAMBLING THAN FROM HAVING A HOME TEAM IN NOVEMBER THE N. B. A. AWARDED AN EXPANSION FRANCHISE TO A TORONTO GROUP ON THE CONDITION THAT THE ONTARIO GOVERNMENT DROP BASKETBALL FROM ITS QUOTE PRO LINE QUOTE SPORTS BETTING LOTTERY ONTARIO REFUSES TO GIVE UP THE GAMBLING REVENUE AND CONFIDENTIAL TALKS BETWEEN THE LEAGUE AND PROVINCE COLLAPSED LAST WEEK IF THE TWO SIDES CAN'T REACH A COMPROMISE THE LEAGUE WILL LOSE A ONE HUNDRED TWENTY FIVE MILLION DOLLAR FRANCHISE FEE AND A FOOTING IN ONE OF NORTH AMERICA'S MOST LUCRATIVE SPORTS MARKETS TORONTO WILL LOSE A PROPOSED ONE HUNDRED TWENTY FIVE MILLION CANADIAN DOLLAR NINETY FIVE MILLION U. S. DOLLARS STADIUM AND THE BUSINESS THAT A BIG LEAGUE BASKETBALL TEAM WOULD DRAW SO NEITHER SIDE WANTS TO KILL THE FRANCHISE AGREEMENT BUT DEFENDING PRO LINE IS A MONSTER MONEY POSITION FOR US SAYS LARRY BERTUZZI ONTARIO'S NEGOTIATOR HE ADDS THAT THE PROVINCE NETTED ABOUT FIFTY MILLION CANADIAN DOLLARS FROM THE SPORTS LOTTERY IN THE YEAR ENDED OCTOBER THE SQUABBLE SHOWS HOW IMPORTANT GAMBLING HAS BECOME AS A REVENUE SOURCE FOR GOVERNMENTS TEN YEARS AGO A PROVINCE MIGHT HAVE OFFERED TAX OR LAND BREAKS TO ENTICE A PROFESSIONAL TEAM SO THAT THE CITY COULD ENJOY THE SPINOFF BENEFITS SAYS BRIAN NEYSMITH PRESIDENT OF CANADIAN BOND RATING SERVICE IN MONTREAL BUT NOW WITH GAMBLING THE REVENUE GOES RIGHT INTO THEIR POCKET AND THE GOVERNMENT CAN'T AFFORD TO GIVE IT UP HE SAYS BASKETBALL REPRESENTS ONLY ABOUT TEN PERCENT OF PRO LINE BETS BUT MR. BERTUZZI SAYS THE N. B. A. DISPUTE IS PIVOTAL BECAUSE OTHER PROFESSIONAL SPORTS HAVE TOLD THE PROVINCE THEY WILL WANT OUT OF PRO LINE IF THE N. B. A. GETS ITS WAY THE N. B. A. HAS FOUGHT AGAINST BASKETBALL BETTING IN THE U. S. WHERE A RECENT FEDERAL LAW BANNED SPORTS GAMBLING IN MOST STATES IT DOESN'T INTEND TO GIVE UP THE FIGHT IN CANADA DEPUTY COMMISSIONER RUSS GRANIK SAYS THE LEAGUE WANTS FANS ROOTING FOR THE HOME TEAM TO WIN NOT TO BEAT THE POINT SPREAD MR. GRANIK SAYS THAT IF THE DISPUTE ISN'T RESOLVED BY MID FEBRUARY IT WILL BE TOO LATE TO INCLUDE A TORONTO TEAM IN THE NINETEEN NINETY FIVE SEASON AND UNLIKELY THAT IT WILL BE SETTLED AS LONG AS THE CURRENT GOVERNMENT IS IN POWER UNLESS THERE'S NO GAMBLING ON N. B. A. GAMES THERE WON'T BE A TEAM IN TORONTO HE INSISTS CHRIS ANTARAS A TORONTO WAITER WHO BETS MORE THAN FIFTY CANADIAN DOLLARS PER WEEK ON PRO LINE SAYS THE N. B. A.'S POSITION IS RIDICULOUS PEOPLE WILL FIND A WAY TO GAMBLE ON SPORTS ANYWAY HE CONTENDS ADDING THAT IF ANYTHING PRO LINE RAISES THE CITY'S INTEREST IN BASKETBALL QUOTE I'D PREFER BASKETBALL QUOTE OVER SPORTS BETTING SAYS TRACY BARKER A TORONTO OFFICE SUPERVISOR WHO WAGERS ABOUT TEN CANADIAN DOLLARS A WEEK HE EXPECTS THAT BOB RAE ONTARIO'S PREMIER EVENTUALLY WILL CAVE IN TO THE N. B. A.'S DEMAND BECAUSE MR. RAE ALREADY LOW IN VOTER SUPPORT CAN'T AFFORD TO TURN HIS BACK ON JOBS AND REVENUE THAT BASKETBALL WOULD BRING TO THE CITY CAUGHT IN THE MIDDLE OF THE HOOPLA IS JOHN BITOVE WHO HEADS THE GROUP THAT WAS CONDITIONALLY AWARDED THE FRANCHISE MR. BITOVE SAYS HE'S STILL OPTIMISTIC THAT A SETTLEMENT WILL BE REACHED BECAUSE BOTH SIDES STAND TO GAIN FROM PROFESSIONAL BASKETBALL IN TORONTO I THINK THE FANS OF TORONTO HAVE WAITED TOO LONG FOR THIS THE MORNING BEFORE THE GAVEL CAME DOWN MARKING THE END OF WORLD TRADE TALKS LAST MONTH U. S. TRADE REPRESENTATIVE MICKEY KANTOR ASSEMBLED WOOD PRODUCT AND PAPER PRODUCT LOBBYISTS IN GENEVA AND PRESENTED THEM WITH SOME DISAPPOINTING NEWS ALTHOUGH HE HAD WON A PHASEOUT OF PAPER TARIFFS MR. KANTOR TOLD THEM HE COULDN'T GET JAPAN TO LOWER WOOD PRODUCT TARIFFS YET HIS MESSAGE THE U. S. EFFORT WASN'T OVER THIS MONTH SENIOR U. S. TRADE OFFICIALS REASSEMBLED MANY OF THOSE SAME LOBBYISTS IN WASHINGTON THE NEWS THEY WERE PRESSING HARD FOR THE LOWER TARIFFS IN BILATERAL TALKS WITH THE JAPANESE EARLY NEXT WEEK U. S. OFFICIALS PLAN TO PUSH THE ISSUE FURTHER WITH JAPAN IN SO CALLED QUAD MEETINGS INCLUDING THE U. S. JAPAN CANADA AND EUROPE IT IS A PATTERN THAT MAY REPEAT ITSELF WITH A NUMBER OF INDUSTRIES WITH THE NORTH AMERICAN FREE TRADE AGREEMENT BATTLE FINALLY WON AND THE GENERAL AGREEMENT ON TARIFFS AND TRADE TALKS CONCLUDED JAPAN HAS TAKEN THE SPOTLIGHT AS THE CENTRAL TRADE ISSUE FACING THE CLINTON ADMINISTRATION AND MANY OF THE INDUSTRIES THAT WERE DISAPPOINTED AT THE RESULTS OF G. A. T. T. OR THAT WANTED MORE THAN THEY GOT OUT OF IT ARE NOW PINNING THEIR HOPES ON THE RESULTS OF TALKS WITH THE JAPANESE ESTABLISHING A QUOTE FRAMEWORK QUOTE FOR THE U. S. JAPAN TRADE RELATIONSHIP WAS SUPPOSED TO BE ONE OF THE ADMINISTRATION'S TOP TRADE PRIORITIES WHEN IT TOOK OFFICE A YEAR AGO BUT IT TOOK A BACK SEAT TO OTHER TRADE ISSUES NOW THOUGH THE ARROW IS POINTING DIRECTLY AT TOKYO JEFFREY GARTEN COMMERCE UNDERSECRETARY FOR INTERNATIONAL TRADE SAYS AS HE SWINGS HIS HAND CLOCKWISE THE G. A. T. T. TALKS TOOK CARE OF SOME OF THE COMPLAINTS U. S. INTERESTS HAVE ABOUT DOING BUSINESS IN JAPAN MOST NOTABLY JAPAN AGREED TO LIFT ITS BAN ON FOREIGN RICE IMPORTS BUT THE TALKS DIDN'T RESOLVE EVERYTHING AND A NUMBER OF ISSUES CONTINUE TO VEX RELATIONS BETWEEN THE TWO COUNTRIES INCLUDING COMPLAINTS FROM THE INSURANCE AUTOMOTIVE AUTO PARTS COMPUTER SOFTWARE SEMICONDUCTOR AND LEATHER AND WOOD PRODUCTS INDUSTRIES THE CORPORATE INTERESTS INVOLVED ARE SOME OF THE BIGGEST NAMES IN U. S. BUSINESS INCLUDING THE BIG THREE AUTO MAKERS CHRYSLER CORPORATION GENERAL MOTORS CORPORATION AND FORD MOTOR COMPANY AS WELL AS SUCH HIGH TECH STALWARTS AS MICROSOFT CORPORATION INTEL CORPORATION MOTOROLA CORPORATION AND TEXAS INSTRUMENTS INCORPORATED THE U. S. HOPES TO WRAP UP SOME OF THE KNOTTIEST OF THE ISSUES BETWEEN THE TWO COUNTRIES INCLUDING THOSE INVOLVING AUTOS AUTO PARTS INSURANCE AND GOVERNMENT PROCUREMENT BEFORE PRESIDENT CLINTON'S SCHEDULED FEBRUARY ELEVENTH MEETING HERE WITH JAPAN'S PRIME MINISTER MORIHIRO HOSOKAWA ON MONDAY A NUMBER OF SENIOR TRADE OFFICIALS FROM BOTH SIDES GATHER IN WASHINGTON TO THRASH OUT DIFFERENCES IN AN INTERVIEW MR. KANTOR SAID THE FRAMEWORK TALKS ARE A MAJOR PRIORITY FOR THE CLINTON ADMINISTRATION WE BELIEVE JAPAN HAS THE SAME RESPONSIBILITY AS THE EUROPEAN COMMUNITY AND CANADA TO OPEN THEIR MARKETS AND LEAD GLOBAL GROWTH THAT'S IN JAPAN'S INTEREST MR. KANTOR INDICATED THAT U. S. CABINET OFFICIALS WOULD SOON GET INVOLVED IN THE NEGOTIATIONS WHICH SO FAR HAVE BEEN CARRIED ON AT THE DEPUTY MINISTERIAL LEVEL THERE HAS TO BE FULL ENGAGEMENT AT EVERY POLITICAL LEVEL HE SAID THE U. S. OFFICIALS LIKELY TO PARTICIPATE INCLUDE TREASURY SECRETARY LLOYD BENTSEN NATIONAL ECONOMIC COUNCIL CHIEF ROBERT RUBIN COMMERCE SECRETARY RONALD BROWN AND MR. KANTOR HIMSELF U. S. OFFICIALS BELIEVE THE SUMMIT COULD BECOME AN IMPORTANT SYMBOL FOR THE EASING OF U. S. JAPAN TRADE TENSIONS QUOTE THERE IS A DESIRE TO MAKE THIS SUMMIT A SUCCESS QUOTE SAYS WILLIAM WATTS PRESIDENT OF POTOMAC ASSOCIATES A POLICY RESEARCH COMPANY IT'S VIEWED AS A MOMENT OF GREAT OPPORTUNITY BUT THERE IS JUST AS GOOD A CHANCE THE SUMMIT COULD WIND UP A DUD BECAUSE THE POLITICAL AND ECONOMIC TURMOIL WITHIN JAPAN WON'T ALLOW THE HOSOKAWA GOVERNMENT THE FLEXIBILITY IT NEEDS TO RESOLVE DISPUTES ONE KEY ISSUE INVOLVES COMPUTER SOFTWARE THE BIG U. S. SOFTWARE COMPANIES WALKED AWAY FROM THE G. A. T. T. TALKS IN GENEVA SATISFIED WITH INTELLECTUAL PROPERTY PROVISIONS IT WAS THE FIRST TIME A G. A. T. T. AGREEMENT HAD INCLUDED SUCH RULES AND SOFTWARE WAS ACCORDED AS HIGH A LEVEL OF PROTECTION AS LITERARY WORK BUT EVEN BEFORE THE G. A. T. T. TALKS HAD CONCLUDED INDUSTRY OFFICIALS WERE DISPATCHED TO TOKYO TO TESTIFY AGAINST PROPOSED CHANGES THAT THEY ARGUED WOULD LIMIT COPYRIGHT PROTECTION JAPAN IS CONSIDERING ALLOWING INCREASED REVERSE ENGINEERING OF SOFTWARE A PROCESS THAT ALLOWS A COMPANY TO TAKE A SOFTWARE PROGRAM BREAK IT DOWN INTO THE ONES AND ZEROS OF COMPUTER LANGUAGE AND THEN ESSENTIALLY DUPLICATE IT THAT HAS SUCH U. S. COMPANIES AS MICROSOFT APPLE COMPUTER INCORPORATED NOVELL INCORPORATED AND LOTUS DEVELOPMENT CORPORATION UP IN ARMS WE THINK THAT G. A. T. T. WAS GOOD FOR THE U. S. SOFTWARE INDUSTRY SAYS KIMBERLY ELLWANGER A TRADE SPECIALIST AND DIRECTOR OF CORPORATE AFFAIRS AT MICROSOFT WHICH HAS SAID IT MIGHT CURTAIL SHIPMENTS OF SOFTWARE IN JAPAN IF REVERSE ENGINEERING BECAME WIDESPREAD JAPAN'S PROPOSAL WOULD BE A STEP BACK FOR U. S. SOFTWARE MAKERS MS. ELLWANGER SAYS ROBERT HOLLEYMAN PRESIDENT OF THE BUSINESS SOFTWARE ALLIANCE AN INDUSTRY LOBBYING GROUP SAYS HIS GROUP IS ARGUING THAT THE PROPOSAL IS FUNDAMENTALLY INCONSISTENT WITH THE U. S. JAPAN FRAMEWORK TALKS MEANWHILE U. S. SEMICONDUCTOR COMPANIES SAY THAT WHILE THE WORLD TRADE AGREEMENT LOWERED VARIOUS TARIFF BARRIERS IT DIDN'T DEAL WITH MOST NONTARIFF BARRIERS AND THE U. S. CLAIMS SUCH OBSTACLES BLOCK U. S. SEMICONDUCTOR SALES IN JAPAN WHICH LIFTED TARIFFS ON FOREIGN SEMICONDUCTOR IMPORTS IN THE NINETEEN EIGHTIES QUOTE WE STILL FACE MARKET ACCESS PROBLEMS VIS A VIS JAPAN QUOTE SAYS JOHN BOIDOCK VICE PRESIDENT AND DIRECTOR OF GOVERNMENT RELATIONS AT DALLAS BASED TEXAS INSTRUMENTS THESE ISSUES WEREN'T NEGOTIATED OR DISCUSSED OR DEBATED IN GENEVA AFTER THE FOREIGN SHARE OF THE JAPANESE MARKET FELL BELOW TWENTY PERCENT IN RECENTLY RELEASED THIRD QUARTER NINETEEN NINETY THREE FIGURES U. S. TRADE REPRESENTATIVE KANTOR CALLED FOR EMERGENCY TALKS WHICH BEGAN YESTERDAY WE'RE HOPEFUL THAT WE'LL GET SOMETHING OUT OF IT SAYS MR. BOIDOCK OTHER INDUSTRIES HAVE CASES TO PRESS TOO EXECUTIVES FROM FINANCIAL SERVICE INDUSTRIES INCLUDING SECURITIES INSURANCE AND DIVERSIFIED FINANCIAL FIRMS LEFT THE WORLD TRADE TALKS UNHAPPY OVER NOT WINNING INCREASED ACCESS TO JAPAN AND THAT ISSUE HANGS OVER THE TWO SIDES OPENING JAPAN TO U. S. INSURANCE COMPANIES IS THE MOST PRESSING BECAUSE THAT SECTOR IS SUPPOSED TO BE RESOLVED BY THE TIME OF THE SUMMIT MEETING AMONG THE COMPANIES VYING FOR MORE ACCESS TO THE JAPANESE MARKET ARE AMERICAN INTERNATIONAL GROUP INCORPORATED CIGNA CORPORATION AND CHUBB CORPORATION AS WELL AS BROKERS SUCH AS MARSH AND MCCLENNAN COMPANIES AND ALEXANDER AND ALEXANDER SERVICES INCORPORATED THEY WANT JAPAN TO BROADEN EFFORTS UNDER WAY TO DEREGULATE ITS INSURANCE BUSINESS AUTO AND AUTO PARTS COMPANIES ARE PRESSING TOO THE PARTS COMPANIES WANT JAPAN TO AGREE TO INCREASE ITS PURCHASES OF U. S. MADE AUTO PARTS BY ABOUT TWENTY PERCENT A YEAR AN ANNUAL INCREASE JAPAN HAS BEEN REALIZING OVER RECENT YEARS THE BIG THREE AUTO MAKERS MEANWHILE WANT JAPAN TO OPEN ITS DISTRIBUTION SYSTEM SO THEY CAN MAKE MORE VEHICLES AVAILABLE TO THE JAPANESE ANDREW CARD FORMER TRANSPORTATION SECRETARY DURING THE BUSH ADMINISTRATION AND CHIEF EXECUTIVE OF THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION IS TAKING HIS SPIEL TO TOKYO LATER THIS MONTH VIA TALK SHOW APPEARANCES LECTURES AND EVEN A TOWN HALL MEETING STILL ANOTHER INDUSTRY SEEKING TO MAKE UP FOR G. A. T. T. IS LEATHER PRODUCT MANUFACTURERS WHO FAILED TO WIN AN INCREASE IN THE AMOUNT OF GOODS THEY CAN SHIP INTO JAPAN OR THE REDUCTION OF TARIFFS JAPANESE OFFICIALS HAVE ARGUED THAT THE TARIFFS AND QUOTAS ARE IN PLACE TO PROTECT A CLASS OF JAPANESE WHO ARE REGARDED IN MUCH THE SAME WAY AS THE UNTOUCHABLE CASTE IN INDIA AND WHO TRADITIONALLY HOLD JOBS AS TANNERS BUT GRANT HANSON ASSISTANT GENERAL COUNSEL AND DIRECTOR OF GOVERNMENT AFFAIRS AT NIKE INCORPORATED WHICH HAS BEEN PUSHING FOR MORE ACCESS TO THE JAPANESE MARKET FOR ITS COLE HAAN SHOE SUBSIDIARY SAYS THAT SINCE THE CONCESSIONS WEREN'T MADE IN G. A. T. T. WE'RE GOING TO CONTINUE TO PURSUE THEM BILATERALLY MONSANTO COMPANY SAID NET INCOME FELL FOR THE FOURTH QUARTER BUT EARNINGS BEFORE SPECIAL ITEMS ROSE SHARPLY REFLECTING THE U. S. ECONOMIC RECOVERY AND THE COMPANY'S ONGOING COST CUTTING EFFORTS RESULTS WERE LACED WITH SPECIAL ITEMS AS WERE THOSE OF THE YEAR AGO QUARTER BUT EXCLUDING SPECIAL CHARGES AND GAINS THE CHEMICAL DRUG AND FOOD PRODUCT CONCERN'S EARNINGS WERE FORTY SIX MILLION DOLLARS COMPARED WITH THE YEAR EARLIER PERIOD'S TWELVE MILLION DOLLARS THE COMPANY REPORTED NET OF FIFTY EIGHT MILLION DOLLARS OR FORTY NINE CENTS A SHARE WHICH INCLUDED A SEVEN MILLION DOLLAR AGGREGATE CHARGE AND A NINETEEN MILLION DOLLAR GAIN LINKED TO LAST IN FIRST OUT INVENTORY ACCOUNTING IN THE YEAR AGO PERIOD WHICH WAS BOLSTERED BY A FIVE HUNDRED FIFTY FOUR MILLION DOLLAR GAIN FROM THE SALE OF A UNIT AND HIT BY A FOUR HUNDRED TWENTY FIVE MILLION DOLLAR CHARGE LINKED TO COST CUTTING EFFORTS MONSANTO'S NET WAS ONE HUNDRED FORTY ONE MILLION DOLLARS OR ONE DOLLAR AND FOURTEEN CENTS A SHARE SALES WERE ONE POINT EIGHT EIGHT BILLION DOLLARS UP FRACTIONALLY FROM THE YEAR AGO PERIOD'S ONE POINT EIGHT SEVEN BILLION DOLLARS OPERATING EARNINGS AT MONSANTO'S CHEMICAL GROUP EXCLUDING SPECIAL ITEMS MORE THAN DOUBLED TO FIFTY FIVE MILLION DOLLARS FROM TWENTY SIX MILLION DOLLARS SALES INCREASED JUST ONE POINT EIGHT PERCENT TO NINE HUNDRED THIRTY SIX MILLION DOLLARS THE COMPANY CITED LOWER PRICES FOR PETROCHEMICALS IT USES IN ITS PRODUCTION AS WELL AS ITS INTERNAL COST CUTTING EFFORTS THE CHEMICAL OPERATION IS GETTING A BOOST FROM THE U. S. ECONOMY'S RECOVERY PARTICULARLY IN SALES OF PLASTICS FOR AUTO PRODUCERS THE U. S. HOUSING SURGE IS ALSO STRENGTHENING DEMAND FOR MONSANTO'S CARPET FIBERS AND OTHER PRODUCTS BUT STAGNANT WESTERN EUROPEAN AND JAPANESE MARKETS CONTINUE TO PUT PRESSURE ON RESULTS MONSANTO'S SEARLE PHARMACEUTICAL UNIT RECORDED OPERATING INCOME OF TWENTY FIVE MILLION DOLLARS COMPARED WITH A YEAR AGO OPERATING LOSS OF THREE MILLION DOLLARS SALES FROM NEW SEARLE PRODUCTS THE COMPANY SAID QUOTE MORE THAN OFFSET THE DECLINES QUOTE IN SALES OF ITS FLAGSHIP CALAN HEART DRUG WHICH SINCE MID NINETEEN NINETY TWO HAS BEEN SUBJECT TO COMPETITION FROM GENERIC PRODUCTS MONSANTO SHARES WHICH HAVE STRENGTHENED SIGNIFICANTLY IN RECENT MONTHS TO HOVER NEAR THE FIFTY TWO WEEK HIGH SLUMPED ONE POINT EIGHT SEVEN FIVE DOLLARS TO SEVENTY EIGHT POINT ONE TWO FIVE DOLLARS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BRITISH AEROSPACE P. L. C. SAID IT WON A DEFENSE DEPARTMENT ORDER TO SUPPLY FIGHTER JETS TO BRITAIN'S ROYAL NAVY THE ORDER IS TO SUPPLY EIGHTEEN NEW SEA HARRIER F. R. S. TWO AIR DEFENSE FIGHTERS FOR THE NAVY FOR DELIVERY FROM NINETEEN NINETY FIVE BRITISH AEROSPACE DIDN'T PROVIDE FINANCIAL DETAILS OF THE CONTRACT HOWEVER A SPOKESMAN FOR THE DEPARTMENT OF DEFENSE SAID THE CONTRACT WOULD TOTAL TWO HUNDRED MILLION POUNDS TWO HUNDRED NINETY EIGHT POINT FIVE MILLION DOLLARS THE SPOKESMAN ALSO SAID NEGOTIATIONS ARE UNDER WAY ON A CONTRACT TO UPDATE OTHER NAVY JETS THOSE JETS MODEL F. R. S. ONE ARE AN EARLIER VERSION OF THE NEW SEA HARRIERS TWO BIG DRUG COMPANIES REPORTED FOURTH QUARTER EARNINGS THAT LARGELY MET EXPECTATIONS REASSURING INVESTORS THAT PFIZER INCORPORATED'S DISAPPOINTING RESULTS ON WEDNESDAY DIDN'T SIGNAL AN INDUSTRY TREND BRISTOL MYERS SQUIBB COMPANY REPORTED A FIFTY SIX PERCENT DROP IN EARNINGS BECAUSE OF A SPECIAL CHARGE TO SETTLE BREAST IMPLANT CLAIMS BUT PROFIT EXCLUDING THE CHARGE WAS WITHIN FORECASTS AMERICAN HOME PRODUCTS CORPORATION REPORTED SALES AND EARNINGS INCREASES OF ALMOST SIX PERCENT ON TARGET WITH ANALYSTS' ESTIMATES THE COMPANIES' SHARE PRICES REMAINED FIRM AFTER THE EARNINGS ANNOUNCEMENTS BRISTOL MYERS SHARES ENDED UP AT FIFTY EIGHT DOLLARS AND SEVENTY FIVE CENTS UNCHANGED AND AMERICAN HOME PRODUCTS SHARES CLOSED AT SIXTY FOUR DOLLARS AND TWENTY FIVE CENTS UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MEANWHILE PFIZER SHARES SLID TWENTY FIVE CENTS TO SIXTY TWO POINT SIX TWO FIVE DOLLARS AFTER FALLING FIVE DOLLARS WEDNESDAY IN BIG BOARD TRADING QUOTE THE IMPORTANCE OF THE EARNINGS RELEASES YESTERDAY WAS THAT THEY CALMED THE FEARS QUOTE EVEN THOUGH THEY WEREN'T STELLAR RESULTS SAID MARIOLA B. HAGGAR AN ANALYST AT SALOMON BROTHERS INCORPORATED AFTER PFIZER ANNOUNCED ITS EARNINGS SHE SAID INVESTORS WERE CALLING FEARFUL THAT IF THE STRONGEST COMPANY IN THE INDUSTRY IS SHOWING A SHORTFALL IT MUST MEAN THE WEAKER COMPANIES ARE GOING TO SHOW A DISASTER AND THAT DIDN'T HAPPEN BRISTOL MYERS'S EARNINGS FELL TO TWO HUNDRED FIFTY FIVE POINT EIGHT MILLION DOLLARS OR FIFTY CENTS A SHARE FROM FIVE HUNDRED EIGHTY THREE MILLION DOLLARS OR ONE DOLLAR AND THIRTEEN CENTS A SHARE A YEAR EARLIER SALES ROSE SIX PERCENT TO TWO POINT NINE NINE BILLION DOLLARS FROM TWO POINT EIGHT TWO BILLION DOLLARS THE MOST RECENT QUARTER INCLUDED A FIVE HUNDRED MILLION DOLLAR PRETAX SPECIAL CHARGE TO SETTLE PENDING AND FUTURE BREAST IMPLANT PRODUCT LIABILITY CLAIMS BRISTOL MYERS'S MEDICAL ENGINEERING CORPORATION UNIT SOLD SILICON BREAST IMPLANTS UNTIL NINETEEN NINETY ONE WHEN IT WITHDREW THE PRODUCT FROM THE MARKET AFTER CONTROVERSY ERUPTED OVER THE SAFETY OF BREAST IMPLANTS THE COMPANY SAID THE CHARGE INCLUDES ONE POINT FIVE BILLION DOLLARS FOR POTENTIAL LIABILITIES AND EXPENSES OFFSET BY ONE BILLION DOLLARS IN EXPECTED INSURANCE PROCEEDS FOR THE YEAR BRISTOL MYERS EARNED ONE POINT NINE SIX BILLION DOLLARS OR THREE DOLLARS AND EIGHTY CENTS A SHARE FLAT WITH THE PREVIOUS YEAR'S ONE POINT NINE SIX BILLION DOLLARS OR THREE DOLLARS AND SEVENTY NINE CENTS A SHARE THE NINETEEN NINETY TWO RESULTS INCLUDED GAINS ON THE DISPOSAL OF A BUSINESS AND A CHARGE FOR ACCOUNTING CHANGES SALES ROSE TWO POINT THREE PERCENT TO ELEVEN POINT FOUR ONE BILLION DOLLARS FROM ELEVEN POINT ONE SIX BILLION DOLLARS EXCLUDING THE SPECIAL CHARGE BRISTOL MYERS'S PER SHARE EARNINGS FROM CONTINUING OPERATIONS ROSE EIGHT PERCENT TO ONE DOLLAR AND TEN CENTS SLIGHTLY BELOW THE CONSENSUS FORECAST BUT WITHIN THE RANGE OF EXPECTATIONS ROBERT HODGSON AN ANALYST AT COWEN AND COMPANY SAID THE COMPANY HAD AN EASIER COMPARISON THAN USUAL WITH THE YEAR EARLIER RESULTS WHICH HAD BEEN DEPRESSED BY LARGE PURCHASES BY WHOLESALERS IN THE THIRD QUARTER THAT PULLED SALES INTO THAT QUARTER AND OUT OF FOURTH QUARTER AMERICAN HOME'S NET ROSE FIVE POINT NINE PERCENT TO THREE HUNDRED EIGHTY TWO POINT SEVEN MILLION DOLLARS OR ONE DOLLAR AND TWENTY THREE CENTS A SHARE FROM THREE HUNDRED SIXTY ONE POINT SIX MILLION DOLLARS OR ONE DOLLAR AND SIXTEEN CENTS A SHARE SALES ROSE FIVE POINT SEVEN PERCENT TO TWO POINT ONE TWO BILLION DOLLARS FROM TWO BILLION DOLLARS FOR THE YEAR THE COMPANY POSTED EARNINGS OF ONE POINT FOUR SEVEN BILLION DOLLARS OR FOUR DOLLARS AND SEVENTY THREE CENTS A SHARE ROUGHLY FLAT WITH ONE POINT FOUR SIX BILLION DOLLARS OR FOUR DOLLARS AND SIXTY FIVE CENTS A SHARE A YEAR EARLIER SALES ROSE FIVE POINT FIVE PERCENT TO EIGHT POINT THREE BILLION DOLLARS FROM SEVEN POINT EIGHT SEVEN BILLION DOLLARS THE NINETEEN NINETY TWO RESULTS INCLUDED A TWO HUNDRED TWENTY MILLION DOLLAR CHARGE RELATED TO THE COMPANY'S PURCHASE OF GENETICS INSTITUTE INCORPORATED DRIVING MUCH OF THE GROWTH IN THE QUARTER WAS THE STRENGTH OF CONSUMER HEALTH CARE PRODUCTS WHERE SALES INCREASED THIRTEEN PERCENT A STRONG FLU SEASON GAVE A BOOST TO COUGH AND COLD PRODUCT SALES ANALYSTS SAID PRESIDENT CLINTON WILL PROPOSE IN HIS FISCAL NINETEEN NINETY FIVE BUDGET SHIFTING RESOURCES IN THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TOWARD CARING FOR THE HOMELESS AND AWAY FROM PUBLIC HOUSING PROGRAMS THE IDEA APPARENTLY IS TO TARGET MORE MONEY TO THE NEEDIEST MOREOVER ADMINISTRATION OFFICIALS BELIEVE THAT HOMELESS PEOPLE NEED MORE COUNSELING AND SOCIAL SERVICES IN ADDITION TO EMERGENCY SHELTER ALTHOUGH THE DETAILS WON'T BE UNVEILED UNTIL FEBRUARY SEVENTH PUBLIC HOUSING ADVOCATES ALREADY ARE PROTESTING EXPECTED CUTS IN THEIR PROGRAMS SOME ONE THOUSAND TWO HUNDRED HOUSING ORGANIZATIONS SIGNED A LETTER TO THE WHITE HOUSE LAST WEEK ASSERTING THAT HOUSING BORE THE BRUNT OF BUDGET CUTS THROUGH THE NINETEEN EIGHTIES AND SHOULDN'T BE HIT AGAIN ADMINISTRATION OFFICIALS SAY MR. CLINTON'S TWENTY FIVE BILLION DOLLARS HUD BUDGET WILL SEEK TO INCREASE ANNUAL FEDERAL SPENDING ON HOMELESSNESS TO MORE THAN ONE POINT TWO BILLION DOLLARS FROM ABOUT EIGHT HUNDRED MILLION DOLLARS NOW BOTH MR. CLINTON AND HUD SECRETARY HENRY CISNEROS HAVE EMPHASIZED THEIR COMMITMENT TO REDUCING HOMELESSNESS AS THE TOP GOAL AT HUD OFFICIALS ACKNOWLEDGED HUD'S PRIORITIES WILL SHIFT BUT THEY WOULDN'T CONFIRM HOW SEVERELY PUBLIC HOUSING FUNDS WOULD BE TRIMMED PUBLIC HOUSING OFFICIALS AND LOBBYISTS SAY THEY EXPECT STEEP CUTS FROM THE CURRENT FOUR POINT SIX BILLION DOLLAR BUDGET FOR BUILDING AND MODERNIZING PUBLIC HOUSING AT LEAST ONE LOBBYIST PREDICTED THAT CONGRESS WOULD REINSTATE ANY SPENDING THE ADMINISTRATION PROPOSES TO CUT FROM PUBLIC HOUSING QUOTE WE WILL TURN AS WE HAVE FOR FOURTEEN YEARS TO MEMBERS OF CONGRESS WHO HAVE DONE THEIR BEST TO FUND PUBLIC HOUSING ADEQUATELY QUOTE SAID GORDON CAVANAUGH WHO REPRESENTS THE COUNCIL FOR LARGE PUBLIC HOUSING AUTHORITIES THE SQUEEZE AT HUD REFLECTS OVERALL BUDGET LIMITS RESULTING FROM LAST SUMMER'S AGREEMENT TO CAP DOMESTIC SPENDING FOR EVERY SPENDING INCREASE PRESIDENT CLINTON PROPOSES A SIMILAR CUT MUST BE FOUND BOTH MR. CISNEROS AND PRESIDENT CLINTON HAVE PUBLICLY TOUTED THEIR COMMITMENT TO REDUCE HOMELESSNESS IN DECEMBER STANDING ALONGSIDE HOMELESS ADVOCATES AT THE WHITE HOUSE THE TWO MEN ANNOUNCED FOUR HUNDRED MILLION DOLLARS IN GRANTS FOR HOMELESS PROGRAMS USING UNSPENT FUNDS FROM PREVIOUS YEARS HUD ALSO LAUNCHED A PROGRAM LAST YEAR PROVIDING TWENTY MILLION DOLLARS IN COUNSELING SHELTER AND OTHER AID FOR THE HOMELESS IN WASHINGTON MR. CISNEROS SAID THE GOVERNMENT'S EFFORTS IN THE DISTRICT WOULD BE A MODEL FOR OTHER CITIES THOMAS L. KENYON PRESIDENT OF THE NATIONAL ALLIANCE TO END HOMELESSNESS APPLAUDED THE SHIFT OF FUNDS TO HELP THE HOMELESS IT FEELS SO GOOD FOR SOMEONE TO CALL THIS A PRIORITY HE SAID AS THE MEXICAN ARMY BRACES ITSELF FOR NEW ATTACKS BY THE SELF STYLED ZAPATISTA NATIONAL LIBERATION ARMY EZLN IN THE SOUTHERN STATE OF CHIAPAS MANY MEXICANS AND MOST OUTSIDE OBSERVERS CONTINUE TO HARBOR ILLUSIONS ABOUT THE NATURE OF THE REVOLT AND THE REGION ITSELF CHIAPAS IS THE PERU OF MEXICO IT AND THE NEIGHBORING STATE OF YUCATAN ESSENTIALLY ENCOMPASS THE HISTORICAL ZONE OF THE ANCIENT MAYAS UNLIKE THE REST OF MEXICO THESE TWO STATES STOOD ALOOF FROM THE SUCCESSFUL PROCESS OF BIOLOGICAL INTERMIXING KNOWN AS MESTIZAJE THAT HELPED TO ALLEVIATE AND DISSOLVE ETHNIC TENSIONS THROUGHOUT THE CENTURIES OF COLONIAL RULE A PECULIAR DESPOTISM ETHNIC IN ITS ORIGINS TYPIFIES THE AUTHORITIES' TREATMENT OF THE PEOPLE AT EVERY LEVEL INCLUDING IN THE HOME IN THE PAST IT WAS THE FEUDAL LANDOWNERS KNOWN AS ENCOMENDEROS MAYORS VILLAGE BOSSES KNOWN AS CACIQUES GOVERNORS AND EVEN PRIESTS WHO DICTATED THEIR OWN TERMS TO THE INDIGENOUS POPULATION TODAY THE CACIQUES GOVERNORS AND PRESIDENTS OF TOWN COUNCILS STILL DICTATE TERMS BUT THEY ARE ALL INTEGRATED INTO THE RULING INSTITUTIONAL REVOLUTIONARY PARTY P. R. I. BECAUSE OF THIS BACKGROUND AND THE REVOLUTIONARY CLOAK WORN BY THE QUOTE ZAPATISTA QUOTE REBELS SOME ANALYSTS HAVE CLASSIFIED THE RECENT BATTLES IN CHIAPAS AS A TYPICAL INDIGENOUS OR PEASANT REBELLION LIKE THOSE THAT OCCURRED DURING THE THREE CENTURIES OF SPANISH RULE ONE THOUSAND FIVE HUNDRED TWENTY ONE TO ONE THOUSAND EIGHT HUNDRED TWENTY ONE OR TO BRING IT CLOSER TO OUR DAYS AN AGRARIAN REVOLT LIKE THAT LED BY THE REVOLUTIONARY ICON EMILIANO ZAPATA WHOSE NAME THE GUERRILLA ARMY HAS ADOPTED THERE IS NO SHORTAGE OF VOICES BOTH AT HOME AND ABROAD SPREADING THIS ROMANTIC IDEA BUT THIS IS NOT A CLASSIC ZAPATISTA PEASANT UPRISING A FREEDOM STRUGGLE OVER A CONCRETE AGRARIAN GRIEVANCE FOUGHT IN A SPECIFIC GEOGRAPHICAL REGION AND SETTLED BY VIOLENCE NOR IS IT LIKE THE INDIGENOUS UPRISINGS OF THE COLONIAL PERIOD WHICH WERE SPONTANEOUS AND REACTIVE THIS IS A PREMEDITATED WAR IT HAS DURING ITS LENGTHY PLANNING ABSORBED THE GUERRILLA EXPERIENCE OF THE NINETEEN SIXTIES IN MEXICO AND OF THE NINETEEN EIGHTIES IN EL SALVADOR AND NICARAGUA FROM EYEWITNESS DESCRIPTIONS IT'S CLEAR THAT THE REBEL LEADERS IN CHIAPAS ARE NOT OF INDIGENOUS OR PEASANT STOCK AND THEIR STATED GOALS ARE VERY DIFFERENT FROM THOSE OF ZAPATA HIS PRIMARY GOAL WAS TO RESTORE THE LANDS APPROPRIATED FROM THE LANDOWNERS TO THE DISPOSSESSED INDIGENOUS COMMUNITIES UNLIKE TODAY'S REBELS HE NEVER WANTED TO TAKE THE CAPITAL OR TO INTRODUCE SOCIALISM IN FACT THE NOTION THAT MEXICO SHOULD REVERT TO AN ECONOMIC SYSTEM EMPLOYED ONLY BY THE MOST RETROGRADE DICTATORSHIPS RUNS CONTRARY TO ZAPATA'S RESPECT FOR DEMOCRATIC PRINCIPLES AT WHICH ELECTION DID THE MEXICAN PEOPLE VOTE FOR SOCIALISM THE HIERARCHY IN THE CHIAPAS UPRISING IS CLEAR AT THE BASE OF THE GUERRILLA PYRAMID LIE THE INDIAN AND MESTIZO PEASANTS ALTHOUGH THEY FIGHT HARD TO SETTLE REAL AND CONCRETE GRIEVANCES CONCERNING POLITICAL OPPRESSION AND SOCIAL AND ECONOMIC INEQUALITY THEY ARE ALSO AROUSED BY THE RELIGIOUS PREACHING OF THOUSANDS OF CATECHIZERS THESE SOLDIERS OF LIBERATION THEOLOGY ADVOCATE THE USE OF VIOLENCE TO INSTILL THE TEACHINGS OF JESUS CHRIST AND TO ACHIEVE PERFECT EQUALITY ON EARTH THE INDIANS OFFER THEIR FERVOR AND LIVES THE CATECHIZERS THEIR SERMONS JUDGING BY THEIR COMMUNIQUES THE REBEL COMMANDERS ARE PROFESSIONAL URBAN GUERRILLAS WITH UNIVERSITY EDUCATIONS THEY ARE SIMILAR IN PROFILE TO THOSE IN CENTRAL AMERICA OR PERU SOME OF THEM ARE MOST LIKELY VETERANS OF THESE GUERRILLA MOVEMENTS WHO HAVE AT THEIR COMMAND THE HUGE ARSENALS NO LONGER NEEDED IN THEIR HOME COUNTRIES WHO IS FINANCING THEM BACKING MAY COME FROM KIDNAPPING OR MISAPPROPRIATION OF OFFICIAL FUNDS PERHAPS THE MOST LIKELY SOURCE OF INCOME IS DRUG TRAFFICKING WHICH IS COMMON IN THIS REGION AS A NATIONAL MILITARY THREAT THIS GUERRILLA FORCE HAS NO FUTURE THE COUNTRY IS TOO LARGE URBAN AND IN SOME RESPECTS DEVELOPED FOR GENERALIZED SOCIAL VIOLENCE TO PROSPER NEVERTHELESS WHATEVER THE OUTCOME OF THE CHIAPAS UPRISING IT WILL CHANGE THE FUTURE OF MEXICO THE LESSON TO BE LEARNED IS CLEAR IF MEXICO WISHES TO PURSUE THE COURSE OF MODERNITY IT IS IMPERATIVE THAT IT CREATE EFFECTIVE WAYS AND MEANS TO PROVIDE SOCIAL SUPPORT AND ECONOMIC EXCHANGE SYSTEMS FOR THE POVERTY STRICKEN THROUGHOUT MEXICO AND THE PRACTICAL SUCCESS OF THIS LESSON DEPENDS ON ONE PRIOR CONDITION DEMOCRACY IF THE MEMBERS OF THE TOWN COUNCILS IN CHIAPAS WERE ELECTED BY THE PEOPLE RATHER THAN BEING NAMED BY THE CENTRAL GOVERNMENT AND THE LOCAL CACIQUES THE PEASANTS COULD THEN SELECT THE METHODS THAT WOULD BEST SERVE THEM TO IMPROVE THEIR DESPERATE CONDITIONS OF ECONOMIC HARDSHIP AND SOCIAL INJUSTICE THIS DEMOCRATIC REFORM FROM BOTTOM TO TOP AND FROM THE MARGINS TO THE CENTER IS NOT A UTOPIA ALL IT REQUIRES IS RESPECT FOR THE VOTE AT EVERY LEVEL BUT HOW CAN THIS BE ACHIEVED PERHAPS THE BEST FORMULA WOULD BE A NATIONAL AGREEMENT ON DEMOCRATIC TRANSITION SIGNED BY ALL THE PARTIES AND THEIR CANDIDATES THE P. R. I. DOES NOT NECESSARILY HAVE TO STEP DOWN FROM POWER HOWEVER FOR THE FIRST TIME IN ITS LONG HISTORY IT DOES HAVE TO CONSIDER THAT POSSIBILITY AND TO PERMIT IMPARTIAL AND INDEPENDENT ELECTORAL BODIES TO HAVE THE FINAL SAY CONCERNING THE ELECTIONS THROUGHOUT THE CENTURIES MEXICO HAS BEEN TORN BETWEEN THE MAGNETIC ATTRACTION OF THE PAST AND THE CALL OF THE FUTURE MOST OF MEXICO HAS ALREADY EMBRACED THE FUTURE NO DEMOCRATICALLY ELECTED PRESIDENT NOT EVEN THE STATIST CANDIDATE CUAUHTEMOC CARDENAS COULD INVERT THIS PROCESS BOTH THE REBELLIOUS AND THE PEACEFUL INDIGENOUS PEOPLES OF CHIAPAS SPEAK FROM A REMOTE PAST BUT THEY HAVE NO DESIRE TO REMAIN THERE ON THE CONTRARY THEY ARE STRIVING FOR THE SAME AS EVERYONE ELSE IN THE NATION IF MEXICO MAKES THE MOST OF THIS MALLEABLE MOMENT TO LAUNCH A PROGRAM OF POLITICAL REFORM AS FAR REACHING AS ITS ECONOMIC REFORM THE MORAL FORCE OF SOCIETY WILL DISARM THE GUERRILLAS AND PUT THEM BACK WHERE THEY BELONG IN AN EXHIBITION ROOM NEXT TO THE P. R. I. DINOSAURS IN THE HISTORY MUSEUM MR. KRAUZE IS AN AUTHOR AND CO EDITOR OF VUELTA MAGAZINE THIS ARTICLE WAS TRANSLATED BY CHARLOTTE BROAD MICROSOFT CORPORATION WORRIED THAT ITS WINDOWS SOFTWARE MAY BE TOO DAUNTING FOR HOME COMPUTER USERS PLANS TO OFFER LATER THIS YEAR A NEW QUOTE LOOK AND FEEL QUOTE FEATURING FAMILIAR SCENES SUCH AS A LIVING ROOM THE EFFORT CODE NAMED UTOPIA REFLECTS MICROSOFT'S DESIRE TO EXPERIMENT WITH EASIER WAYS OF CONTROLLING SOFTWARE THAN THE COMPANY'S WINDOWS APPROACH WHICH SOME EXECUTIVES AT THE COMPANY THINK IS TOO CONFUSING TO CHILDREN AND SOME ADULTS WHO USE COMPUTERS AT HOME RATHER THAN RELY ON ICONS OR PICTURES OF POPULAR COMMANDS AND LISTS OF OPTIONS CALLED MENUS THE UTOPIA INTERFACE PRESENTS SCENES FROM THE PHYSICAL WORLD ONE UTOPIA PROTOTYPE OFFERS A SCREEN IMAGE OF A ROOM WITH A DESK AND PLAY MATERIALS POINTING AND CLICKING ON AN IMAGE LAUNCHES AN ACTIVITY OR SHIFTS THE SCENE TO ANOTHER PART OF THE HOUSE THE NEW INTERFACE WHICH WILL APPEAR IN SEVERAL MICROSOFT PRODUCTS TO BE RELEASED IN THE SECOND HALF OF NINETEEN NINETY FOUR RUNS ON TOP OF THE WINDOWS PROGRAM AND ISN'T INTENDED TO REPLACE IT BUT UTOPIA DOES GIVE MICROSOFT THE WORLD'S LARGEST SOFTWARE MAKER THE CHANCE TO FIND OUT IF YOU NEED A RADICALLY DIFFERENT INTERFACE IN THE FUTURE SAID MICHAEL MAPLES MICROSOFT'S TOP EXECUTIVE FOR NEW PRODUCTS MR. MAPLES SAID THE HOME MARKET IS THE IDEAL PLACE TO TEST THE APPEAL OF WHAT HE CALLED A PHYSICAL WORLD METAPHOR FOR SOFTWARE OTHER SOFTWARE SUPPLIERS ALREADY HAVE SEEN GOOD RESULTS IN OFFERING PROGRAMS THAT MAKE WORKING A COMPUTER SEEM LIKE AN EXERCISE IN HANDLING FAMILIAR OBJECTS BRODERBUND SOFTWARE INCORPORATED SELLS A POPULAR PROGRAM FOR YOUNG CHILDREN CALLED PLAYROOM GENERAL MAGIC INCORPORATED'S MAGIC CAP INTERFACE WHICH IS DRAWING SUPPORT AS A STANDARD FOR TELECOMPUTING RELIES ON A SCENE DEPICTING A CITY'S DOWNTOWN IN ORDER TO HELP USERS SHUTTLE AMONG ELECTRONIC SERVICES THIS APPROACH SEEMS LIKELY TO SPREAD BECAUSE IT SEEMS FUN TO PEOPLE WHO ARE AFRAID OF TECHNOLOGY SAID MARC PORAT GENERAL MAGIC'S CHIEF EXECUTIVE OFFICER SOFTWARE THAT PRESENTS THE PHYSICAL WORLD AS TOOLS FOR MANIPULATION COULD BE EVERYWHERE IN A FEW YEARS MR. PORAT ADDED QUOTE FIRST THE COMPUTER THEN PERSONAL COMMUNICATORS THE TELEVISION AND THE STEREO QUOTE THE TREND ULTIMATELY COULD UNDERMINE MICROSOFT'S HOLD OVER THE SOFTWARE MARKET WHICH IN THE PAST FOUR YEARS HAS DECIDEDLY SHIFTED TOWARD PROGRAMS THAT ADHERE TO THE WINDOWS LOOK AND FEEL THERE'S A HUGE MARKET FOR SOMETHING EASIER TO USE THAN WINDOWS THAT INVITES KIDS IN SAID SALLY NARODICK CHIEF EXECUTIVE OFFICER OF EDMARK CORPORATION WHICH MAKES A LINE OF HOME SOFTWARE THAT PRESENTS PHYSICAL WORLDS INCLUDING KID DESK MS. NARODICK SAID THAT BECAUSE OF MICROSOFT'S SIZE AND MARKETING CLOUT THE COMPANY'S SUPPORT FOR THE APPROACH SHOULD BROADEN INTEREST IN IT DRINK YOUR PLUTONIUM IT'S GOOD FOR YOU A JAPANESE NUCLEAR POWER LOBBY IS SPREADING THE WORD THAT WHEN USED PROPERLY PLUTONIUM ISN'T DANGEROUS BUT DOWNRIGHT FRIENDLY THE POWER REACTOR AND NUCLEAR FUEL DEVELOPMENT CORPORATION HAS DECIDED TO TELL ITS STORY THROUGH A CARTOON MASCOT QUOTE RELIABLE FRIEND LITTLE PLUTO QUOTE A ROSY CHEEKED LITTLE GUY WEARING A SNUG HELMET WITH THE INITIALS PU PLUTONIUM'S UNFORTUNATE PERIODIC SYMBOL PLUTO STARS IN A PROMOTIONAL VIDEO INTENDED TO ALLAY FEARS ABOUT DANGEROUS UNSTABLE ELEMENTS LIKE A LOT OF PEOPLE LITTLE PLUTO IS SCARED OF NUCLEAR WEAPONS I WAS USED FOR BOMBS WHICH WAS VERY REGRETTABLE HE CONCEDES LIKE A POLITICIAN DISCUSSING HIS COLLEGE YEARS I REALLY HATE WAR PLUTO ADDS I'D LIKE TO WORK FOR PEACE DYNAMITE IS DANGEROUS BUT IT'S USEFUL FOR HUMANS I'D LIKE TO BE LIKE THAT LITTLE PLUTO WANTS TO TALK TURKEY ABOUT THE DANGERS OF PLUTONIUM EXPOSURE QUOTE IT'S A MISUNDERSTANDING QUOTE SAYS THE DIMINUTIVE PARTICLE EMITTER PEOPLE THINK I'M A CAUSE OF CANCER PLUTONIUM ISN'T LIKE CYANIDE WHERE JUST A LITTLE BIT CAN KILL YOU THE VIDEO SHOWS A CARTOON MAN WHO'S BLOATED FROM DOWNING SIX MUGS OF PLUTONIUM COCKTAIL EVEN IF YOU SWALLOW IT SAYS PLUTO IT GOES RIGHT OUT YOUR BODY A TOILET FLUSHES AND THE MAN EMERGES SLIM I FEEL SO FRESH HE EXULTS PLUTO'S BOSSES ARE NOT SURPRISINGLY PRO PU WE WANT PEOPLE TO UNDERSTAND THAT PLUTONIUM ISN'T THREATENING IF WE TREAT IT CAREFULLY SAYS TAKASHI DAIMON A SPOKESMAN AT POWER REACTOR AND NUCLEAR DEVELOPMENT WHICH HOPES TO OPERATE A FAST BREEDER REACTOR IN THE CITY OF TSURUGA IN NORTHERN JAPAN LITTLE PLUTO IS CERTAINLY GENERATING A LOT OF HEAT AMONG JAPAN'S ANTINUCLEAR ACTIVISTS QUOTE THE VIDEO IS ABSURD PLUTONIUM IS A DEADLY POISON QUOTE SAYS KIYOSHI YOSHIMURA OF THE TSURUGA CITIZEN'S GROUP THAT PROTESTS AGAINST CONSTRUCTION OF THE FASTBREEDER REACTOR HE CITES JAPANESE GOVERNMENT REPORTS THAT SAY INGESTING PLUTONIUM CAN BE FATAL THE VIDEO IS CUTE BUT MISLEADING MR. YOSHIMURA SAYS MR. YOSHIMURA DOESN'T VERY UNSCIENTIFIC SAYS THE PROTESTER I THINK A LOT MORE PEOPLE WILL BE SUSPICIOUS ABOUT PLUTONIUM AFTER THIS PACIFICARE HEALTH SYSTEMS INCORPORATED SAID ITS PACIFICARE OF WASHINGTON SUBSIDIARY SIGNED AN AGREEMENT TO ACQUIRE PREFERRED HEALTH RESOURCES INCORPORATED A SEATTLE HEALTH CARE COMPANY TERMS WEREN'T DISCLOSED PREFERRED HEALTH RESOURCES OPERATES NETWORK HEALTH PLAN A STATE LICENSED HEALTH CARE SERVICES CONTRACTOR WITH MORE THAN THIRTY TWO THOUSAND MEMBERS AND NETWORK MANAGEMENT INCORPORATED A THIRD PARTY ADMINISTRATOR WITH MORE THAN FORTY THOUSAND ENROLLEES COMPLETION OF THE ACQUISITION WHICH IS SUBJECT TO REGULATORY APPROVAL IS EXPECTED WITHIN FORTY FIVE DAYS ANDY WHO IN A BIZARRE LEGAL BATTLE TAKING PLACE IN NEW YORK STATE SURROGATE'S COURT THE FOUNDATION THAT CONTROLS ANDY WARHOL'S WORK IS ARGUING THAT THE POP ART MASTER'S FIFTEEN MINUTES OF FAME MAY BE OVER THE COURT CASE IS BEING WAGED TO SETTLE A VALUATION OF THE WARHOL ESTATE ITS THOUSANDS OF CELEBRITY PORTRAITS AND CAMPBELL SOUP CAN AND BRILLO BOX POP ART ARE COLLECTIVELY VALUED AT EITHER TWO HUNDRED TWENTY MILLION DOLLARS OR EIGHT HUNDRED TWENTY SEVEN MILLION DOLLARS DEPENDING ON WHOSE CALCULATOR IS ADDING IT UP AND AT WHAT POINT IN THE ART MARKET'S FURIOUS BOOM BUST CYCLE THEY STARTED TO COUNT ON ONE SIDE OF THE COURTROOM IS ED HAYES THE ESTATE'S ONETIME GENERAL COUNSEL MR. HAYES WHO SERVED AS THE ESTATE'S ATTORNEY FOR SIX YEARS IS ARGUING THAT BECAUSE WARHOL WAS A GENIUS WHOSE PLACE IN ART HISTORY IS SECURE THE VALUE OF THE ESTATE WHICH HOLDS SECURITIES REAL ESTATE AND ART IS EIGHT HUNDRED TWENTY SEVEN MILLION DOLLARS HE HAS GOOD REASON TO ESTIMATE HIGH IF HE PREVAILS HE COULD GET A FEE OF SIXTEEN MILLION DOLLARS ON THE OTHER SIDE OF THE TABLE AND AT THE LOW END OF THE SPECTRUM IS THE ESTATE'S CHIEF BENEFICIARY THE ANDY WARHOL FOUNDATION FOR THE VISUAL ARTS SIDING WITH THE FOUNDATION ON THE ESTIMATE IS THE EXECUTOR OF WARHOL'S ESTATE FREDERICK HUGHES MR. HAYES SAYS THE WARHOL FOUNDATION WANTS TO KEEP THE VALUATION LOW SO THEY CAN PAY HIM LESS AND THE FOUNDATION WILL LOOK SMARTER IF THEY LATER SELL THE WORKS FOR MORE MONEY THE FOUNDATION'S TWO HUNDRED TWENTY MILLION DOLLAR FIGURE WAS ASSIGNED BY AN OUTSIDE APPRAISER AT THE BOTTOM OF THE ART MARKET IN THE SPRING OF NINETEEN NINETY ONE THE WARHOL FOUNDATION'S STAR WITNESS VETERAN ART DEALER ANDRE EMMERICH TOOK THE STAND LATE LAST WEEK TO WARN OF A POTENTIAL QUOTE PERIOD OF OBLIVION QUOTE FOR WARHOL IN COMING YEARS BRILLO BOXES WILL NO LONGER LOOK THE SAME COCA COLA BOTTLES HAVE ALREADY BEGUN TO DISAPPEAR CAMPBELL SOUP LABELS WILL CHANGE TO OUR CHILDREN AND GRANDCHILDREN WARHOL WORKS MAY HAVE LOST THEIR FRESHNESS HE WARNED MOREOVER MR. EMMERICH SAID WARHOL IS MORE AT RISK THAN MOST ARTISTS OF HIS GENERATION OF BECOMING UNFASHIONABLE WARHOL'S CELEBRITY PORTRAITS OF ELVIS PRESLEY MARILYN MONROE ELIZABETH TAYLOR WILL BE FORGOTTEN AS SOON AS THE CELEBRITIES HE TESTIFIED FUTURE GENERATIONS MAY TREASURE A SILK SCREEN OF MARILYN MONROE ABOUT AS MUCH AS A PHOTOGRAPH OF ALICE ROOSEVELT LONGWORTH WHICH IS TO SAY NOT MUCH COUNTERS FRANCIS HARVEY AN ESTATE ATTORNEY WHO WORKED WITH MR. HAYES QUOTE WHO THE HELL WAS MONA LISA QUOTE AND WHILE MR. HAYES'S SIDE WAXES ELOQUENT ON WARHOL'S DISTINCTIVE EASILY RECOGNIZABLE STYLE AND HIS SIMILARITY TO PABLO PICASSO EXPERTS TESTIFYING FOR THE WARHOL FOUNDATION DRAW PARALLELS TO LESSER ARTISTIC LIGHTS SUCH AS CRUSHED CAR PARTS SCULPTOR JOHN CHAMBERLAIN ARCHIBALD GILLIES THE FOUNDATION'S OWN PRESIDENT SAYS WARHOL IS NO PICASSO EXCEPT PERHAPS WHEN IT COMES TO THE ABUNDANCE OF HIS WORK THE WARHOL FOUNDATION ATTORNEYS DENY THAT THEIR LEGAL STRATEGY ESSENTIALLY RUNS DOWN THE FOUNDATION'S OWN PROGENITOR THEY ARGUE THAT TWO HUNDRED TWENTY MILLION DOLLARS IS A STAGGERING AMOUNT FOR THE WORK OF A CONTEMPORARY ARTIST AND THAT THE EXPERTS WHO TESTIFIED TO MR. HAYES'S HIGHER VALUATION ARE USING JEANE DIXON FORTUNE TELLING THEY SAY THE FOUNDATION IS KEEPING WARHOL'S MEMORY ALIVE BY FUNDING AN ANDY WARHOL MUSEUM IN HIS HOMETOWN OF PITTSBURGH AND BY LENDING OR SELLING WARHOL ART TO SIXTY TWO MUSEUMS WORLD WIDE WARHOL THE PIONEER OF THE POP ART MOVEMENT DIED FEBRUARY TWENTY SECOND NINETEEN EIGHTY SEVEN AT THE AGE OF FIFTY EIGHT ALMOST IMMEDIATELY THE GHOUL FACTOR SET IN THE ART WORLD PHENOMENON IN WHICH PRICES OF A DEAD ARTIST'S WORK TAKE OFF DUE TO FINANCIAL SPECULATION THE CUTOFF IN SUPPLY AND A POSTHUMOUS RE EVALUATION OF HIS TALENT BY COLLECTORS AND TREND SETTING MUSEUMS AT THE SAME TIME THE GREAT ART MARKET BOOM OF THE LATE NINETEEN EIGHTIES WAS RAGING BEFORE WARHOL'S DEATH NO WARHOL WORK HAD SOLD FOR MORE THAN ONE MILLION DOLLARS IN THE FIVE YEARS FOLLOWING WARHOL'S DEATH ALMOST TWO DOZEN WORKS BROKE THAT BARRIER IN NINETEEN EIGHTY NINE A HUGELY SUCCESSFUL RETROSPECTIVE OF HIS WORK WAS MOUNTED BY THE MUSEUM OF MODERN ART IN NEW YORK AND TOURED THE WORLD IN THE EXHIBITION'S CATALOG SOME OF THE WORLD'S LEADING ART CRITICS LAUDED WARHOL AS THE PRIMARY ARTIST OF HIS GENERATION NOW THE WHOLE VALUATION ISSUE TURNS ON HOW MUCH WARHOL ART THERE ACTUALLY IS SINCE APPRAISERS SOMETIMES FIGURE IN A A DISCOUNT IF AN ART ESTATE HAS A LARGE NUMBER OF SIMILAR WORKS AND IT SEEMS WARHOL'S STYLE OF CREATION MAY HAVE BOOBYTRAPPED HIS OWN ARTISTIC LEGACY THE SILK SCREENING PROCESS HE USED MOST FREQUENTLY FACILITATED MULTIPLE COPIES OF EACH WORK WHILE THE FOUNDATION FOUGHT HARD AND SUCCESSFULLY TO KEEP THE TOTAL NUMBER OF WORKS IN THE ESTATE OUT OF THE PUBLIC RECORD SOURCES CLOSE TO THE ESTATE PUT IT AT AN AWESOME FOUR THOUSAND PAINTINGS EIGHT THOUSAND DRAWINGS AND MORE THAN SIXTY THOUSAND PHOTOGRAPHS OFTEN TAKEN BY WARHOL AS STUDIES FOR LATER WORKS MR. HAYES BELIEVES SO STRONGLY IN HIS OWN SIDE'S VALUE ESTIMATES AND THE WARHOL LEGACY THAT HE IS WILLING TO SETTLE HIS ENTIRE CLAIM IN EXCHANGE FOR NINETEEN THOUSAND EIGHT HUNDRED SEVENTY NINE BLACK AND WHITE POLAROIDS WARHOL TOOK AS STUDIES FOR FUTURE WORKS THE FOUNDATION APPRAISED THE PHOTOS AT ONE HUNDRED SEVEN THOUSAND DOLLARS TO MR. HAYES HOWEVER THEY ARE THE BLUEPRINT FOR WARHOL'S LIFE'S WORK AND ARE WORTH THE ADDITIONAL TWELVE MILLION DOLLARS HE SAYS HE IS STILL OWED IN LEGAL FEES IN FACT HE WOULD PREFER TO BE PAID IN WARHOL ART NOT CASH AND PLANS TO GO INTO THE ART DEALER BUSINESS BUT MR. GILLIES FLATLY REFUSING TO USE WARHOL ART AS PAYMENT SAYS IMAGINE LETTING ED HAYES LOOSE SELLING ART IN AIRPORTS EVERYBODY GETS A PIECE OF ANDY WARHOL IN FACT THE JUDGE MAY DECIDE THE CASE NOT ON THE ESTATE'S VALUE BUT ON UPCOMING HEARINGS THAT ADDRESS WHETHER MR. HAYES EARNED HIS MONEY MR. HUGHES IS SIDING WITH THE FOUNDATION ON THE EVALUATION BUT DECLINES TO DISCUSS THE WARHOL FOUNDATION'S LEGAL STANCE TOWARD HIS OLD FRIEND BUT OF WARHOL HE SAYS IF I WAS NOT ONE HUNDRED PERCENT SURE OF HIS GENIUS WHEN HE DIED I AM NOW IN WARHOL'S ART HE SAYS QUOTE I DISCOVER NEW THINGS ALL THE TIME I THINK IT WILL BE A LONG TIME BEFORE ANYONE COMES CLOSE TO ANY UNDERSTANDING OF ANDY WARHOL ON ASSIGNMENT INCORPORATED SIGNED A LETTER OF INTENT TO ACQUIRE PRIVATELY HELD FIRST CHOICE MORTGAGE PERSONNEL INCORPORATED ON ASSIGNMENT SAID IT WILL PAY SEVEN HUNDRED THOUSAND DOLLARS IN A COMBINATION OF CASH AND STOCK FOR THE FIRM ON ASSIGNMENT SAID IT ALSO GAVE KEY EMPLOYEES AT FIRST CHOICE MORTGAGE OPTIONS TO BUY A TOTAL OF ONE HUNDRED FIFTY THOUSAND DOLLARS OF FIRST CHOICE COMMON STOCK THE TRANSACTION IS SUBJECT TO NUMEROUS CONDITIONS ON ASSIGNMENT SAID IT EXPECTS THE ACQUISITION TO CONTRIBUTE QUOTE POSITIVELY QUOTE TO NINETEEN NINETY FOUR REVENUE AND EARNINGS WILLIAM E. MAYER FIFTY THREE YEARS OLD WAS ELECTED A DIRECTOR OF THIS COSMETICS RETAILER FILLING A VACANCY ON THE SEVEN MEMBER BOARD MR. MAYER IS DEAN OF THE COLLEGE OF BUSINESS AND MANAGEMENT AT THE UNIVERSITY OF MARYLAND WHEN JAPAN RELEASES YEAR END TRADE STATISTICS TODAY THE CLINTON ADMINISTRATION LIKELY WILL GET SOME MIXED NEWS THE PRESIDENT'S STRONG YEN POLICY HELPED BRIGHTEN AMERICA'S TRADE RELATIONSHIP WITH JAPAN BUT ONLY HALFWAY U. S. EXPORTS TO JAPAN HAVE PICKED UP STEAM BUT THE BILATERAL TRADE IMBALANCE HASN'T BUDGED LAST YEAR THE YEN ROSE SHARPLY AGAINST THE DOLLAR AFTER PRESIDENT CLINTON AND TREASURY SECRETARY LLOYD BENTSEN SAID PUBLICLY THAT THEY THOUGHT THE YEN SHOULD BE STRONGER THE JAPANESE CURRENCY NEARLY REACHED PARITY WITH THE PENNY IN AUGUST BEFORE WEAKENING SOMEWHAT IN THE SUCCEEDING MONTHS NOW AT ABOUT ONE HUNDRED ELEVEN YEN TO THE DOLLAR THE JAPANESE UNIT IS STILL TWELVE PERCENT STRONGER THAN IT WAS AT THE BEGINNING OF NINETEEN NINETY THREE AND THE EFFECT AS THE ADMINISTRATION HOPED IS TELLING U. S. GOODS ARE NOW LESS EXPENSIVE IN TERMS OF YEN AND THAT HAS SET OFF A SURGE IN BUSINESS FOR U. S. COMPANIES SELLING IN JAPAN HALF THE BATTLE IN THE EFFORT TO SHRINK THE HUGE TRADE DEFICIT WITH JAPAN SALES OF U. S. GOODS FROM PHARMACEUTICALS TO SEMICONDUCTORS ARE UP IN JAPAN IN OCTOBER THE CURRENCY SHIFT ALLOWED H. J. HEINZ COMPANY OF PITTSBURGH TO SLASH THE PRICE OF A BOTTLE OF KETCHUP SOLD IN JAPAN BY TWENTY PERCENT TO TWO HUNDRED FIFTY YEN TWO DOLLARS AND TWENTY FIVE CENTS BY NOVEMBER THE COMPANY SAYS ITS SHARE OF JAPAN'S KETCHUP MARKET LEAPED THREE PERCENTAGE POINTS FROM SEPTEMBER LEVELS TO NEARLY TEN PERCENT JAPANESE TRADE DATA SHOW THAT U. S. EXPORTS TO JAPAN GREW NEARLY NINE PERCENT IN DOLLAR TERMS IN THE SIX MONTHS THROUGH LAST SEPTEMBER AFTER FALLING MORE THAN TWO PERCENT IN THE PREVIOUS TWELVE MONTHS THE TREND CONTINUED IN SUCCEEDING MONTHS ALTHOUGH AT A SLOWER CLIP U. S. EXPORTS TO JAPAN INCHED UP ZERO POINT TWO PERCENT IN OCTOBER AND GREW FOUR PERCENT IN NOVEMBER NOW THE BAD NEWS EVEN THOUGH U. S. EXPORTS TO JAPAN ARE UP JAPAN'S TRADE SURPLUS WITH THE U. S. ESTIMATED AT ABOUT FIFTY BILLION DOLLARS IN NINETEEN NINETY THREE IS ESSENTIALLY AS BIG AS EVER INDEED U. S. TREASURY OFFICIALS ARE CONCERNED THAT TOKYO LATELY HAS ALLOWED THE YEN TO WEAKEN IN AN EFFORT TO BOOST JAPAN'S EXPORTS AND THUS HELP LIFT THE NATION OUT OF RECESSION QUOTE ALLOWING THE YEN TO SLIDE IS NOT AN ACCEPTABLE WAY OUT OF RECESSION FOR JAPAN QUOTE MR. BENTSEN SAID EARLIER THIS MONTH THE TREASURY PREFERS THAT JAPAN INSTEAD CUT TAXES TO SPUR ITS ECONOMY MANY ECONOMISTS WORRY THAT THE SURPLUS WITH THE U. S. MAY NOT DECLINE FOR SOME TIME TO COME THE REASON IN LARGE PART IS AMERICA'S UNDYING LOVE AFFAIR WITH JAPANESE PRODUCTS THE U. S. ECONOMIC RECOVERY HAS SUCKED IN BILLIONS OF DOLLARS OF JAPANESE GOODS EVEN THOUGH WHEN COMPARED WITH EARLY NINETEEN NINETY TWO THOSE PRODUCTS ARE NOW MORE EXPENSIVE IN DOLLAR TERMS BECAUSE OF THE CURRENCY SHIFT IN MANY CASES JAPAN IS A MAJOR OR EXCLUSIVE SOURCE OF GOODS EXPORTS TO THE U. S. OF JAPANESE VIDEO CAMERAS IN NOVEMBER FOR EXAMPLE SURGED THIRTY SEVEN PERCENT PARTLY AS A RESULT OF THE U. S. ECONOMY'S EXPANSION JAPAN'S EXPORTS TO THE U. S. ROSE EIGHT POINT THREE PERCENT IN DOLLAR TERMS IN NOVEMBER AND BECAUSE TRADE STATISTICS ARE REPORTED IN DOLLARS THE YEN DOLLAR CURRENCY SHIFT ALSO WORKED TO BOOST THE OVERALL DOLLAR VALUE OF JAPAN'S SURPLUS WITH THE U. S. THE SO CALLED J. CURVE EFFECT NOTABLY THOUGH JAPAN'S GLOBAL SURPLUS DECLINED IN NOVEMBER FOR THE FIRST TIME IN THREE YEARS BECAUSE THE COUNTRY'S OVERALL IMPORTS GREW FASTER THAN ITS EXPORTS SO IT'S NO SURPRISE THAT U. S. TRADE NEGOTIATORS WERE BACK IN TOKYO EARLIER THIS MONTH PRESSING THE JAPANESE TO BUY MORE AND IT'S LIKELY THAT THE TENSIONS WILL CONTINUE TO RISE AHEAD OF NEXT MONTH'S SUMMIT IN WASHINGTON BETWEEN THE LEADERS OF BOTH COUNTRIES AT THE VERY LEAST THOUGH PRESIDENT CLINTON CAN PRETTY MUCH COUNT ON A FURTHER INCREASE IN U. S. EXPORTS TO JAPAN DURING NINETEEN NINETY FOUR REGARDLESS OF WHAT HAPPENS TO THE OVERALL TRADE BALANCE TOSHIYUKI IMAI ECONOMIST AT THE JAPAN CENTER FOR ECONOMIC RESEARCH FORECASTS A THREE POINT SIX PERCENT RISE IN U. S. SHIPMENTS TO JAPAN TO FIFTY EIGHT POINT ONE SEVEN BILLION DOLLARS THE CHIEF REASON EXPORTS TO JAPAN ARE EXPECTED TO INCREASE IS THAT ANALYSTS EXPECT THE YEN TO STAY RELATIVELY STRONG DURING THE YEAR EVEN THOUGH IT MIGHT SLIP FURTHER AGAINST THE DOLLAR IN THE SHORT TERM A FIRM YEN WILL PROTECT MUCH OF THE BENEFICIAL CURRENCY EFFECT THAT U. S. EXPORTERS ARE ENJOYING PARTICULARLY THE NEW PHENOMENON OF IMPORT SUBSTITUTION IN JAPAN CONSUMERS ARE GETTING HOOKED ON IMPORT BARGAINS AND MANUFACTURERS ARE BRINGING IN CHEAPER PARTS AND RAW MATERIALS IT JUST MAKES SENSE TO BRING IN GOODS FROM OVERSEAS SAYS BARING SECURITIES ECONOMIST GEOFFREY BARKER THE YEN WAS A CATALYST FOR THAT PROCESS MR. BARKER THINKS THE IMPORT TREND IS PROBABLY HERE TO STAY ROBERT FELDMAN ECONOMIST AT SALOMON BROTHERS IN TOKYO THINKS THE JAPANESE CURRENCY WILL IN FACT SOFTEN TO ONE HUNDRED SEVENTEEN YEN TO THE DOLLAR IN THE NEXT FEW MONTHS THEN REBOUND TOWARD ONE HUNDRED TEN YEN IN THE SECOND HALF OF THE YEAR HIS REASONING MANY INVESTORS EXPECT JAPAN TO CUT INTEREST RATES FURTHER TO SPUR ITS WEAK ECONOMY AND THE BOOMING U. S. TO DO THE OPPOSITE SO MONEY IS FLOWING INTO HIGHER YIELDING DOLLARS UNDERMINING THE YEN BUT MR. FELDMAN THINKS THAT TREND WILL REVERSE AFTER MIDYEAR WHEN JAPAN ENTERS A MODEST RECOVERY AND THE U. S. EXPANSION FAILS TO LIVE UP TO EXPECTATIONS IF HE'S RIGHT TOKYO T. SHIRT PRINTER ART VILLAGE INCORPORATED WILL LIKELY KEEP ON BUYING AMERICAN MANAGING DIRECTOR AKIO SUZUKI SAYS HIS COMPANY HAS SWITCHED FROM MOSTLY JAPANESE SUPPLIERS TO FRUIT OF THE LOOM INCORPORATED OF CHICAGO THE STRONG YEN MADE THE U. S. SHIRTS TWENTY FIVE PERCENT TO THIRTY FIVE PERCENT CHEAPER THAN JAPANESE PRODUCTS NOW WE BUY ABOUT SEVENTY PERCENT OF OUR SCREEN PRINTED T. SHIRTS FROM THEM MR. SUZUKI SAYS AND THE BILATERAL BALANCE OF TRADE ECONOMISTS ARE SPLIT ON THE OUTLOOK SHINYA NEMOTO ECONOMIST AT NOMURA RESEARCH INSTITUTE THINKS THE U. S. EXPORT WAVE WILL HELP REDUCE JAPAN'S TRADE SURPLUS IN THE COMING YEAR BUT MORE ANALYSTS SIDE WITH THE JAPAN CENTER'S MR. IMAI HE ESTIMATES THAT JAPAN'S SURPLUS WITH THE U. S. ACTUALLY WILL EXPAND FOUR PERCENT IN NINETEEN NINETY FOUR TO FIFTY ONE POINT SIX TWO BILLION DOLLARS MATCHING THE RECORD FIFTY TWO POINT OH NINE BILLION DOLLARS SET IN NINETEEN EIGHTY SEVEN KENNETH H. BACON CONTRIBUTED TO THIS ARTICLE LIKE MANY BUSINESS NEOPHYTES WILLIAM E. MITCHELL THOUGHT HE COULD ELIMINATE START UP PROBLEMS BY BUYING A FRANCHISE HE WAS WRONG MR. MITCHELL A SAVANNAH GEORGIA AUTO MECHANIC WANTED TO OPEN A SPECIALTY SHOP FOR AUTO RACING FANS LIKE HIMSELF LAST SUMMER HE SPOTTED AN ENTICING NEWSPAPER ADVERTISEMENT IN WHICH WINNER'S CIRCLE FRANCHISE DEVELOPMENT CORPORATION SOUGHT FRANCHISEES FOR JUST THAT KIND OF STORE AFTER VISITING A WINNER'S CIRCLE SALES OFFICE IN HILTON HEAD S. C. MR. MITCHELL SAYS HE PAID TWELVE THOUSAND FIVE HUNDRED DOLLARS FOR A FRANCHISE AND OPENED A SAVANNAH STORE IN NOVEMBER QUOTE I ASSUMED I WAS GOING TO GET A LOT OF HELP WHICH I WAS PROMISED BY THE FRANCHISER QUOTE HE RECALLS BUT WINNER'S CIRCLE HAS FAILED TO SUPPLY OR FINANCE AN ADEQUATE INVENTORY OF APPAREL AND SOUVENIRS MR. MITCHELL CONTENDS HE SAYS THAT HIS STORE LOST HUNDREDS OF DOLLARS A DAY IN SALES DURING THE CRUCIAL HOLIDAY SEASON MOSTLY BECAUSE IT LACKED GOODS PICTURING THE RENOWNED RACER DALE EARNHARDT THE COMPANY DENIES ALLEGATIONS BY MR. MITCHELL AND SEVERAL OTHER UNHAPPY FRANCHISEES MANY FRANCHISEES FIND THAT THEIR FRANCHISERS PROMISE PLENTY BUT DELIVER LITTLE THE RESULT CAN BE DEVASTATING IF THE FRANCHISEE IS COUNTING ON THE FRANCHISER FOR ESSENTIAL SERVICES OR SUPPLIES MANY FRANCHISEES DISCOVER ONCE THEY ARE IN THE BUSINESS THAT THEY ARE PAYING ROYALTIES FOR NOTHING SAYS W. MICHAEL GARNER A NEW YORK FRANCHISING LAWYER MR. MITCHELL ISN'T THE ONLY WINNER'S CIRCLE FRANCHISEE TO VOICE DOUBTS JAMES A. MEANEY A COLUMBUS OHIO LAWYER SAYS HE WROTE COMPLAINTS TO OHIO'S ATTORNEY GENERAL LAST MONTH ON BEHALF OF MR. MITCHELL AND SEVEN OTHER WINNER'S CIRCLE FRANCHISEES HE SAYS THE FRANCHISEES WANT REFUNDS RANGING FROM FOURTEEN THOUSAND FIVE HUNDRED DOLLARS TO THIRTY THREE THOUSAND DOLLARS TO COVER THEIR INITIAL INVESTMENTS AND CERTAIN OTHER COSTS THE ATTORNEY GENERAL'S OFFICE SAYS THAT IT WILL STUDY WHETHER THE STATE SHOULD TRY TO GET THE FRANCHISEES' MONEY BACK MR. MEANEY SAYS FOUR OF HIS EIGHT CLIENTS HAVE OPENED WINNER'S CIRCLE UNITS THE OTHERS PAID FOR FRANCHISES BUT HAVEN'T OPENED THEIR STORES BECAUSE OF THE ALLEGED SUPPLY PROBLEMS ACCORDING TO MR. MEANEY ALL EIGHT CONTEND THAT WINNER'S CIRCLE HAS FAILED TO KEEP THEM FULLY SUPPLIED FROM A CENTRAL WAREHOUSE AND TO PROVIDE THEM WITH THIRTY DAY FINANCING FOR THEIR INVENTORY MR. MITCHELL FOR INSTANCE SAYS HE IS STRUGGLING TO STRIKE HIS OWN DEALS WITH OUTSIDE SUPPLIERS A PROCESS THAT HAS REQUIRED ABOUT TWENTY THOUSAND DOLLARS MORE CASH THAN HE HAD EXPECTED TO NEED I'M HANGING ON BY THE SKIN OF MY TEETH HE SAYS MEANWHILE HE IS REFUSING TO PAY THE FIVE PERCENT CUT OF SALES THAT HE OWES WINNER'S CIRCLE IF I PAID THE ROYALTY I'D BE BANKRUPT HE ADDS GARY R. BLUME A SCOTTSDALE ARIZONA ATTORNEY FOR WINNER'S CIRCLE REPLIES YOU HAVE HERE A GROUP OF SUCCESSFUL FRANCHISEES WHO DON'T WANT TO PAY THEIR ROYALTIES WARD H. KERR THE FRANCHISER'S PRESIDENT ATTRIBUTES THEIR GRIEVANCES TO TEMPORARY START UP PROBLEMS THERE WERE SOME GLITCHES IN THE BEGINNING BUT THEY ARE ALL BEING WORKED OUT QUOTE HE SAYS THE COMPANY IS RESISTING REFUNDS HOWEVER BECAUSE THE FRANCHISEES HAVE VIABLE BUSINESS OPPORTUNITIES HE INSISTS WINNER'S CIRCLE AND ITS CRITICS AGREE THAT THE COMPANY RADICALLY CHANGED ITS INITIAL OPERATING PLANS THE ORIGINAL IDEA WAS THAT A WELL STOCKED DISTRIBUTION CENTER WOULD SPARE FRANCHISEES THE COSTS AND TROUBLE OF DEVELOPING THEIR OWN RELATIONSHIPS WITH DOZENS OF OUTSIDE SUPPLIERS THE DISTRIBUTION CENTER WAS THE KEY TO THE FRANCHISING PROGRAM SAYS RICK RIFFEL A FORMER CONSULTANT TO WINNER'S CIRCLE WHO HAS HAD A DISAGREEMENT WITH THE COMPANY MR. RIFFEL IS A PARTNER IN TENNESSEE CONNECTION A SPECIALTY RETAILER WITH LAKEWOOD N. Y. AND ERIE PENNSYLVANIA STORES FOR AUTO RACING BUFFS LAST SEPTEMBER WINNER'S CIRCLE OPENED A WAREHOUSE ALSO NAMED TENNESSEE CONNECTION IN ABILENE TEXAS WINNER'S CIRCLE LATER DECIDED THAT IT WOULD BE TOO COSTLY TO MEET FRANCHISEES' FULL INVENTORY NEEDS THROUGH THAT WAREHOUSE MR. KERR SAYS THE FRANCHISER NOW HELPS FRANCHISEES TO OBTAIN SUPPLIES INDIVIDUALLY HE ADDS AS FOR INVENTORY FINANCING MR. KERR DENIES BREAKING ANY PROMISES MR. KERR SAYS THAT HE FORMED WINNER'S CIRCLE LAST MAY WITH INVESTORS RICHARD KERN THEN OF SCOTTSDALE ARIZONA AND RICHARD L. LEVINGER THEN OF HILTON HEAD MR. KERN STILL OWNS THE MAJORITY OF STOCK BUT MR. LEVINGER NO LONGER IS AN OWNER ACCORDING TO MR. KERR NEITHER MR. KERN NOR MR. LEVINGER COULD BE REACHED IN FRANCHISE OFFERING CIRCULARS LAST YEAR WINNER'S CIRCLE LISTED ONLY ONE OFFICER MR. KERR AND GAVE AN ERIE ADDRESS AS ITS PRINCIPAL PLACE OF BUSINESS MR. RIFFEL SAYS WINNER'S CIRCLE ACTUALLY HAD ONLY A POSTAL BOX IN ERIE THOUGH HE SAYS HE CONDUCTED WINNER'S CIRCLE FRANCHISEE TRAINING SESSIONS AT HIS COMPANY'S STORE THERE MR. KERR SAYS HE DOESN'T RECALL LISTING THE COMPANY'S HEADQUARTERS AS ERIE BUT CONFIRMS THAT TRAINING OCCURRED IN ERIE WINNER'S CIRCLE ACTUALLY HAS HEADQUARTERS IN ABILENE ACCORDING TO MR. KERR BUT MR. KERR OPERATES FROM THE LOUISVILLE KENTUCKY OFFICE OF PREFERRED RESTAURANTS INCORPORATED WHICH HE SAYS IS THE MANAGEMENT COMPANY FOR THREE FAST FOOD FRANCHISERS PIZZA CHEF CORPORATION BLAZERS FRANCHISE DEVELOPMENT CORPORATION AND SALSA'S FRANCHISE DEVELOPMENT CORPORATION FRANCHISEES AND MR. RIFFEL SAY WINNER'S CIRCLE OFFICIALS BOASTED ABOUT THEIR INVOLVEMENT IN THE LITTLE KNOWN PIZZA CHEF GOURMET PIZZA BLAZERS ALL AMERICAN BARBECUE AND SALSA'S GOURMET MEXICAN CUISINE FRANCHISE FORMATS THEY WERE USING NUMBERS RELATING TO THESE OTHER FRANCHISES TO ESTABLISH CREDIBILITY IN OFFERING A NEW FRANCHISE CONCEPT SAYS DANIEL E. VAN VOORHIS A WINNER'S CIRCLE FRANCHISEE IN SPRINGFIELD OHIO IN HINDSIGHT MR. VAN VOORHIS AND OTHERS SAY THAT THEY SHOULD HAVE PAID MORE ATTENTION TO THE FRANCHISER'S LACK OF EXPERIENCE AT RUNNING WINNER'S CIRCLE NOT ALL WINNER'S CIRCLE FRANCHISEES ARE UNHAPPY THOUGH WE'VE DONE REAL WELL SAYS ROBERT S. ESPOSITO IN GLENDALE ARIZONA WHEN WINNER'S CIRCLE FAILED TO DELIVER THE EXPECTED LEVELS OF INVENTORY HE SAYS I GOT SMART FAST AND FOUND OUT WHERE TO GET THINGS RODNEY J. SAPP WITH TWO STORES IN CINCINNATI AND DAYTON OHIO SAYS QUOTE WE THOUGHT THERE WOULD BE ONE CENTRAL PLACE TO GET PRODUCTS THAT HASN'T HAPPENED STILL I'M A HAPPY CAMPER MR. SAPP CONTINUES EXPLAINING THAT THE WINNER'S CIRCLE BUSINESS CONCEPT IS JUST GREAT THE COMPANY SAYS IT HAS SOLD TWENTY FRANCHISES SO FAR WITH EIGHT UNITS NOW OPEN IT AIMS FOR FIFTY OPEN UNITS BY YEAR END ADDS MR. KERR EVERY DAY WE ARE GETTING STRONGER AND STRONGER PRICOR INCORPORATED'S SHAREHOLDERS APPROVED A PROPOSAL TO CHANGE THE COMPANY'S NAME TO CHILDREN'S COMPREHENSIVE SERVICES INCORPORATED EFFECTIVE FEBRUARY FIFTEENTH THE COMPANY SAID ITS NASDAQ NATIONAL MARKET SYSTEM STOCK SYMBOL WILL BE CHANGED TO KIDS ALSO EFFECTIVE FEBRUARY FIFTEENTH CHINA'S NINETEEN NINETY THREE CRIME RATE GREW SIX POINT TWO PERCENT THE SAME ANNUAL PACE SINCE NINETEEN EIGHTY TWO BUT THE GOVERNMENT CITED THE ECONOMIC BOOM FOR A TWENTY THREE PERCENT INCREASE IN THE NUMBER OF SERIOUS CRIMES REPORTED MURDERS INCREASED SEVEN POINT EIGHT PERCENT TO THIRTY TWO THOUSAND POLICE SAID THEY CRACKED NINETEEN THOUSAND DRUG TRAFFICKING CASES UP THIRTY TWO PERCENT FROM NINETEEN NINETY TWO THEFTS AND ROBBERIES INCREASED TWENTY PERCENT TO FOUR HUNDRED FIFTY THOUSAND AUTHORITIES SAID THEY DETAINED SEVEN HUNDRED EIGHTY THOUSAND GANG MEMBERS UP FIFTY SIX PERCENT MEANWHILE IN SHANGHAI NINETY THOUSAND BICYCLES WERE REPORTED STOLEN LAST YEAR CHINESE REFER TO THEIR COUNTRY AS THE QUOTE KINGDOM OF BICYCLES QUOTE SHANGHAI ALONE HAS SEVEN MILLION BIKES ONE FOR EVERY TWO PEOPLE SEPARATELY CHINA'S INDUSTRIAL OUTPUT IN DECEMBER SURGED A RECORD THIRTY FIVE PERCENT TO FORTY SIX POINT ONE SIX BILLION DOLLARS FROM THE YEAR EARLIER MONTH REFLECTING BEIJING'S RELAXATION OF CURBS ON LOANS TO STATE COMPANIES THAT HAD FORCED THEM TO LAY OFF WORKERS FOR LACK OF OPERATING FUNDS KAZAKHSTAN WAS ACCEPTED FOR MEMBERSHIP IN THE ASIAN DEVELOPMENT BANK WHICH SAID IT WOULD TREAT THE FORMER SOVIET REPUBLIC AS A TEST ECONOMY IN MOVING AWAY FROM STATE CONTROL THE BANK BASED IN MANILA SAID IT INTENDED TO HELP THE CENTRAL ASIAN COUNTRY MAKE A GRADUAL BUT SMOOTH TRANSITION TO A MARKET ORIENTED ECONOMY BY RESTRUCTURING STATE ENTERPRISES SUPPORTING THE PRIVATE SECTOR AND ATTRACTING FOREIGN INVESTMENT HUNGARY'S HEALTH AGENCY SIGNED A JOINT VENTURE AGREEMENT WITH A U. S. PHYSICIAN'S FLORIDA CONCERN TO SET UP THE COUNTRY'S FIRST PRIVATE FOR PROFIT HOSPITAL THE HUNGARIAN BORN DOCTOR STEPHAN J. WITTMANN AN ANESTHETIST SAID THE ONE HUNDRED FIFTY BED HOSPITAL TO BE OPENED BY NINETEEN NINETY SIX WILL COST BETWEEN FORTY MILLION DOLLARS AND SEVENTY FIVE MILLION DOLLARS THE GOVERNMENT DONATED THE LAND AT A FORMER SOVIET ARMY BASE IN SZENTENDRE A DOZEN MILES NORTH OF BUDAPEST THE HOSPITAL WITH MANAGEMENT NURSES AND EQUIPMENT TO BE IMPORTED FROM THE U. S. IS TO SERVE ABOUT TWO HUNDRED THOUSAND HUNGARIANS WHO CAN AFFORD PRIVATE HEALTH CARE IN A COUNTRY WHERE MOST MEDICAL TREATMENT IS PROVIDED BY THE STATE A BRITISH INVESTIGATION OF THE WORLD'S TWELFTH WORST TANKER SPILL BLAMED THE SHIP'S CAPTAIN FOR THE ACCIDENT IN THE SHETLAND ISLANDS THE BRAER SPILLED TWENTY FOUR POINT SIX MILLION GALLONS OF OIL AFTER RUNNING AGROUND IN A SEVERE STORM ON JANUARY FOURTH NINETEEN NINETY THREE THE REPORT SAID THE GREEK CAPTAIN ALEXANDROS GELIS WAS DERELICT FOR FAILING TO PREVENT LOOSE STEEL PIPES FROM CAUSING DAMAGE THAT ALLOWED SEA WATER TO CONTAMINATE THE FUEL SUPPLY OF THE LIBERIAN REGISTERED TANKER THE MAIN ENGINE AND GENERATOR FAILED AND THE CREW ABANDONED SHIP WHICH WAS DRIVEN ASHORE BY HURRICANE FORCE WINDS ITALY RATIFIED AN INTERNATIONAL CONVENTION ON MONEY LAUNDERING PARTICIPATING NATIONS ALLOW CONFISCATION OF PROFITS OR GOODS GAINED FROM CRIMINAL ACTIVITY LIFT BANKING SECRECY FOR INQUIRIES SHARE POLICE INFORMATION AND ADOPT COMMON INVESTIGATING TECHNIQUES THE ACCORD TO TAKE EFFECT MAY FIRST IN ITALY IS IN FORCE IN BRITAIN BULGARIA THE NETHERLANDS AND SWITZERLAND RATIFICATION IS PENDING BY FIFTEEN OTHER NATIONS THAT HAVE SIGNED THE ACCORD FINNISH OPPOSITION TO JOINING THE EUROPEAN UNION SHRANK SIGNIFICANTLY IN THE PAST MONTH AN OPINION SAMPLING BY THE HELSINGIN SANOMAT NEWSPAPER FOUND IN A GALLUP POLL FORTY ONE PERCENT OF THE RESPONDENTS FAVORED FINLAND'S MEMBERSHIP IN THE FORMER EUROPEAN COMMUNITY AND TWENTY SEVEN PERCENT OPPOSED IT IN DECEMBER A SIMILAR POLL FOUND FORTY PERCENT FOR AND FORTY THREE PERCENT AGAINST THE E. U. APPLICATION THOSE WHO WERE UNDECIDED INCREASED TO THIRTY TWO PERCENT FROM SEVENTEEN PERCENT FINNS WILL VOTE ON E. U. MEMBERSHIP LATER THIS YEAR THE GOVERNMENT APPLIED TO JOIN IN NINETEEN NINETY TWO AND HOPES TO BE ACCEPTED BY NINETEEN NINETY FIVE THE FRENCH FASHION HOUSE CHANEL APOLOGIZED TO THE MUSLIM WORLD SAYING IT UNWITTINGLY PUT VERSES OF THE KORAN ON DRESSES SHOWN IN ITS SUMMER COLLECTIONS IN THE PARIS SHOW LAST WEEKEND ARABIC WORDS WERE EMBROIDERED IN PEARLS ON A TORSO HUGGING BUSTIER AND OTHER DRESSES CHANEL DESIGNER KARL LAGERFELD WHOSE CLIENTELE INCLUDES ARABS SAID HE TOOK THE DESIGN FROM A BOOK ON INDIA'S TAJ MAHAL PALACE A GERMAN MR. LAGERFELD SAID HE FOUND THE DESIGN AESTHETICALLY PLEASING AND WASN'T AWARE OF ITS MEANING AFTER A MUSLIM GROUP IN JAKARTA PROTESTED CHANEL SAID IT DESTROYED THE DRESSES WITH THE OFFENDING DESIGNS ALONG WITH NEGATIVES OF THE PHOTOS MADE OF THE GARMENTS IT ALSO APPEALED TO PRESS PHOTOGRAPHERS AND TELEVISION CREWS TO DO LIKEWISE CHANEL DENIED THAT IT FEARED REPRISALS FROM MUSLIMS FOR DESECRATING THE KORAN THE SACRED BOOK OF ISLAM IN NINETEEN EIGHTY NINE IRAN'S REVOLUTIONARY ISLAMIC LEADER THE LATE AYATOLLAH RUHOLLAH KHOMEINI ORDERED THE DEATH OF THE BRITISH WRITER SALMAN RUSHDIE FOR HIS NOVEL THE SATANIC VERSES CONSIDERED BLASPHEMOUS BY MANY MUSLIMS RUSSIAN COAL OUTPUT LAST YEAR DECREASED NINE POINT EIGHT PERCENT TO THREE HUNDRED FIVE MILLION METRIC TONS FROM A YEAR EARLIER AND EXPORTS TO COUNTRIES OUTSIDE THE FORMER SOVIET UNION DROPPED FIVE POINT THREE PERCENT TO EIGHTEEN MILLION TONS TO SHED ITS WARRING PAST AND BUILD ITS TOURISM APPEAL CAMBODIA NEXT MONTH WILL STAGE EVENTS SUCH AS A PEDICAB RACE AND PERFORMANCES OF TRADITIONAL DANCES AND SONGS OTHER PLANNED ATTRACTIONS INCLUDE MEKONG RIVER BOAT RACES AND A MARATHON NEAR THE ANCIENT TEMPLES OF ANGKOR WAT BASED ON THE STOCK MARKET'S RECENT BEHAVIOR MAYBE WALL STREET TRADERS SHOULDN'T EVEN BOTHER SHOWING UP FOR WORK UNTIL THREE FIFTY P. M. MORE THAN EVER THE DOW JONES INDUSTRIAL AVERAGE HAS CARVED OUT A PATTERN OF REGISTERING ITS GAINS IN THE FINAL MINUTES OF EACH TRADING DAY LATE AFTERNOON INSTITUTIONAL BUY ORDERS DESCENDING ON THE MARKET IN WAVES HAVE MADE IT ROUTINE FOR THE DOW JONES AVERAGE TO SPURT JUST BEFORE THE FOUR P. M. CLOSE BY ONE CALCULATION SINCE LAST MAY AN AVERAGE FORTY SEVEN PERCENT OF THE DOW'S DAILY MOVEMENT MOSTLY UPWARD MOVEMENT OF LATE HAS OCCURRED IN THE LAST TEN MINUTES QUOTE IT'S LIKE CLOCKWORK QUOTE SAYS ROBERT EXLER EQUITY TRADER AT CLOVER CAPITAL MANAGEMENT IN PITTSFORD N. Y. I DON'T KNOW WHO IT IS OR WHAT IT IS BUT THERE'S DEFINITELY A PATTERN TO IT HE SAYS IT REMINDS HIM OF THE TYPICAL N. B. A. PRO BASKETBALL GAME WHERE THE LAST TWO MINUTES IS ALL THAT MATTERS THAT'S WHEN THE GAME IS DECIDED INTRIGUED BY THE DOW'S LATE DAY MOVEMENTS MR. EXLER STARTED KEEPING A COMPUTER RECORD LAST MAY TWENTY FOURTH THAT TRACKED WHAT THE DOW DID FROM THREE FIFTY P. M. ON AMONG THE EYE OPENING FINDINGS THE LAST TEN MINUTES OF TRADING ACCOUNTED FOR EIGHTY NINE PERCENT OF THE DOW'S OVERALL GAINS IN OTHER WORDS FROM MAY TWENTY FOURTH TO YEAR END TWO HUNDRED SIXTY ONE POINTS WERE GAINED ON THE DOW AND A NET TWO HUNDRED THIRTY THREE OF THEM COUNTING BOTH GAINS AND LOSSES WERE REAPED IN THE TEN MINUTES BEFORE THE CLOSING BELL IN MID DECEMBER THERE WERE SEVEN DAYS IN A ROW IN WHICH THE DOW SPURTED UPWARD JUST BEFORE THE CLOSE THE STATISTICAL PROBABILITY OF THAT HAPPENING IS PRETTY SLIM SAYS PROFESSOR ROBERT WOOD OF MEMPHIS STATE UNIVERSITY WHO HAS STUDIED HOW STOCKS BEHAVE IN THE LAST MINUTES OF A TRADING DAY STUDIES HAVE SHOWN THAT THE FINAL TRADES OF A DAY TYPICALLY OCCUR ON AN UPTICK ADDS PROFESSOR WOOD BUT NOT NECESSARILY TO THE EXTENT IT HAS BEEN HAPPENING IN RECENT MONTHS A NEW YORK STOCK EXCHANGE SPOKESMAN SAYS WE ALWAYS MONITOR FOR UNUSUAL TRADING ACTIVITY BUT WE CAN'T COMMENT ON SPECIFIC SITUATIONS QUOTE I THINK SOMETHING VERY STRANGE IS GOING ON HERE QUOTE MOANS ONE BEARISH WALL STREET TRADER HE CLAIMS THAT MUTUAL FUNDS AND OTHER INSTITUTIONAL TRADERS ARE WAVING THE MARKET THROUGH WAVES OF LAST MINUTE STOCK BUYING HE AND OTHER BEARS CLAIM IT'S ANOTHER REASON THE MARKET ISN'T REALLY AS STRONG AS IT SEEMS AFTER ALL THE NUMBER OF DECLINING BIG BOARD ISSUES OFTEN OUTNUMBERS ADVANCERS EVEN WHEN THE DOW CLOSES HIGHER WHY IS THE DOW ABLE TO JUMP SO MUCH LATE IN THE DAY A COMBINATION OF REASONS INCLUDING PROGRAM TRADING WHICH HAS RETURNED TO RECORD LEVELS AND THE POWER OF MUTUAL FUNDS SAY TRADERS SOME OF THE BUYING OBSERVES ONE BIG BOARD BROKER IS FROM INSTITUTIONS THROWING IN THE TOWEL TO OWN ECONOMY SENSITIVE CYCLICALS AND DOW STOCKS SUCH AS GENERAL MOTORS AND CATERPILLAR WHEN COMPUTER ASSISTED MULTISTOCK PROGRAM TRADES HIT THE MARKET LATE IN THE DAY AND THE DOW TICKS UPWARD THE INSTITUTIONAL ORDERS BEGIN BEING FILLED AND THE RISE SNOWBALLS THERE'S JUST SO MANY PROFESSIONALS IN THE MARKET RIGHT NOW THEY'RE ABLE TO MOVE THE MARKET A LOT MORE THAN IN THE PAST THE BROKER SAYS DUDLEY EPPEL HEAD OF STOCK TRADING AT DONALDSON LUFKIN AND JENRETTE SAYS THE TENDENCY IS FOR THE MARKET TO THIN OUT NEAR THE CLOSE ALLOWING PROGRAM TRADES TO MUSCLE PRICES THIS DOESN'T MEAN THAT PROGRAM TRADING HAS BEEN NOTHING BUT A LATE IN THE DAY SAVIOR FOR STOCK PRICES ON THE CONTRARY PROGRAM TRADING DEPRESSES STOCK PRICES DURING OTHER PARTS OF THE DAY ACCORDING TO BIRINYI ASSOCIATES A GREENWICH CONNECTICUT STOCK MARKET RESEARCH FIRM PROGRAM TRADING ACCOUNTED FOR FIVE POINT ONE PERCENT OF THE DOW'S GAINS FOR ALL OF NINETEEN NINETY THREE OR JUST TWENTY THREE POINTS OF THE FOUR HUNDRED FIFTY TWO POINT NINE EIGHT TOTAL THAT MEANS THERE ARE MANY DAYS IN WHICH PROGRAM TRADING TUGS THE MARKET UP AND DOWN BEFORE GIVING THE DOW A FINAL MODEST YANK UPWARD IN THE CLOSING MINUTES THE LESSON FOR INVESTORS CLOVER CAPITAL'S MR. EXLER SAYS QUOTE IF YOU'RE OUT THERE SELLING QUOTE IN THE AFTERNOON QUOTE YOU'RE MUCH BETTER OFF WAITING FOR THE LAST TEN MINUTES QUOTE OR EVEN THE NEXT MORNING YOU'LL PROBABLY GET A HIGHER PRICE GIANT STUBS TOE FIDELITY MAGELLAN FUND BY FAR THE NATION'S LARGEST MUTUAL FUND DIPPED ZERO POINT THREE PERCENT IN THE FOURTH QUARTER IT WAS THE FIRST QUARTERLY DECLINE UNDER JEFF VINIK WHO TOOK OVER THE FUND IN MID NINETEEN NINETY TWO I HAD THREE GREAT QUARTERS AND ONE TERRIBLE QUARTER SAYS MR. VINIK ADDING THAT ONE YEAR IS THE SHORTEST PERIOD OVER WHICH IT'S FAIR TO JUDGE A FUND FOR THE YEAR MAGELLAN ROSE TWENTY FOUR POINT SEVEN PERCENT MORE THAN DOUBLE THE GAIN IN THE S. AND P. FIVE HUNDRED MR. VINIK HAS BOLDLY LOADED THE THIRTY ONE BILLION DOLLAR FUND WITH ENERGY PARTICULARLY NATURAL GAS STOCKS AND SEMICONDUCTOR STOCKS AND STRIPPED AWAY ALMOST ALL FOOD BEVERAGE TOBACCO AND DRUG STOCKS THE STRATEGY WORKED GREAT FOR THE FIRST NINE MONTHS AND IN DECEMBER BUT IT BACKFIRED IN OCTOBER AND NOVEMBER MR. VINIK SAYS HE PLANS TO STICK TO THE SAME STRATEGY IN NINETEEN NINETY FOUR THEY DID BADLY IN THE QUARTER FOR THE SAME REASON THEY HAD A GREAT YEAR BECAUSE JEFF VINIK HAS THE COURAGE TO BE DIFFERENT FROM THE MARKET SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS IN CHICAGO JOHN R. DORFMAN CONTRIBUTED TO THIS ARTICLE UNITED KINGDOM CHEMICALS CONCERN B. O. C. GROUP P. L. C. SAID IT WILL MAKE AN EIGHTY FIVE POUND MILLION ONE HUNDRED TWENTY SIX POINT NINE MILLION DOLLARS PROVISION FOR THE YEAR ENDING SEPTEMBER THIRTIETH NINETEEN NINETY FOUR B. O. C. ADDED THAT SOME ONE THOUSAND SEVEN HUNDRED JOBS WILL BE LOST IT DIDN'T SAY WHEN THESE CUTS WOULD TAKE PLACE COMMENTING ON THE RESTRUCTURING PLANS COMPANY CHIEF EXECUTIVE OFFICER PAT DYER TOLD THE ANNUAL MEETING QUOTE IN EFFECT THIS IS SPENDING MONEY TO SAVE MONEY A ONE TIME COST TO ACHIEVE CONSIDERABLE SAVINGS YEAR AFTER YEAR INTO THE FUTURE QUOTE THE COMPANY SAID THE PAYBACK ON THE PROVISION WILL BEGIN IN THE CURRENT YEAR AND WITHIN THREE YEARS WILL LEAD TO SAVINGS OF ALMOST SIXTY MILLION POUNDS A YEAR B. O. C. SAID CURRENT BUSINESS WAS IN LINE WITH EXPECTATIONS BUT THAT SIGNS OF ECONOMIC IMPROVEMENT ARE LIMITED B. O. C. SAID PROFITS IN HEALTH CARE WOULD CONTINUE TO BE DEPRESSED BY THE EFFECT OF GENERIC COMPETITION FOR ITS FORANE ANAESTHETIC IN THE U. S. BUT THAT ITS REPLACEMENT DRUG SUPRANE WAS PROGRESSING WELL B. O. C. ALSO SAID THAT PATRICK RICH PLANS TO STEP DOWN FROM HIS POST OF CHAIRMAN AT THE BEGINING OF APRIL SHORTLY AFTER HIS SIXTY THIRD BIRTHDAY PARTLY BECAUSE OF HEALTH REASONS THE BOARD EXPECTS TO MAKE A DECISION ON A SUCCESSOR SOON MR. RICH WHO HAS WORKED FOR B. O. C. FOR ELEVEN YEARS HAD BEEN CHAIRMAN AND CHIEF EXECUTIVE UNTIL LATE LAST YEAR WHEN THE ROLES WERE SPLIT AND PAT DYER WAS NAMED TO THE CHIEF EXECUTIVE SPOT BANKS IN SOUTH DAKOTA AND MISSISSIPPI HAVE AGREED TO SETTLE FEDERAL CHARGES THAT THEY DISCRIMINATED AGAINST MINORITIES WHEN MAKING HOUSING LOANS FIRST NATIONAL BANK OF VICKSBURG MISSISSIPPI HAS AGREED TO AN EIGHT HUNDRED THOUSAND DOLLAR SETTLEMENT OF CHARGES IT DISCRIMINATED AGAINST BLACK BORROWERS BY OVERCHARGING THEM ON INTERESTS RATES FEDERAL OFFICIALS SAID OF THAT AMOUNT SEVEN HUNDRED FIFTY THOUSAND DOLLARS GOES TOWARD COMPENSATING ABOUT ONE HUNDRED SEVENTY AFRICAN AMERICANS WHO ALLEGEDLY WERE CHARGED HIGHER RATES THAN WHITES FOR UNSECURED LOANS A FIFTY THOUSAND DOLLAR FINE WILL BE PAID TO THE GOVERNMENT THE COMPTROLLER OF THE CURRENCY EUGENE LUDWIG SAID THAT IN NINETEEN NINETY TWO FIRST NATIONAL CHARGED NINETY SEVEN PERCENT OF SIXTY ONE BLACK BORROWERS INTEREST RATES THAT WERE FIVE PERCENTAGE POINTS ON AVERAGE HIGHER THAN WHITES QUOTE FROM A STATISTICAL PERSPECTIVE QUOTE HE ADDED QUOTE IT IS ONE CHANCE IN A MILLION LITERALLY ONE CHANCE IN A MILLION THAT THESE STATISTICS CAN BE EXPLAINED OTHER THAN DIFFERENTIATION BY RACE QUOTE BLACKPIPE STATE BANK IN MARTIN S. D. WILL SET ASIDE ONE HUNDRED TWENTY FIVE THOUSAND DOLLARS TO COMPENSATE VICTIMS OF ALLEGED UNFAIR LENDING PRACTICES JUSTICE DEPARTMENT AND BANK OFFICIALS SAID SOME NATIVE AMERICANS WILL HAVE THEIR INTEREST RATES LOWERED IF THE COMPENSATION DOESN'T REQUIRE THE FULL ONE HUNDRED TWENTY FIVE THOUSAND DOLLARS THEN AS MUCH AS FIFTY THOUSAND DOLLARS WILL BE PAID TO THE GOVERNMENT AS A FINE ACCORDING TO PAUL HANCOCK CHIEF OF THE HOUSING SECTION IN THE JUSTICE DEPARTMENT'S CIVIL RIGHTS DIVISION IN NOVEMBER THE JUSTICE DEPARTMENT FILED SUIT ALLEGING THAT BLACKPIPE REFUSED TO MAKE LOANS ON NATIVE AMERICAN RESERVATIONS AND SET CREDIT REQUIREMENTS THAT DIDN'T APPLY TO WHITES NO BANK OFFICERS ARE NAMED IN THE SUITS MR. HANCOCK SAID THE SETTLEMENTS REQUIRE THE BANKS TO PROVIDE MORTGAGE LOANS WITHOUT DISCRIMINATION AND CALL ON THEM TO TRAIN EMPLOYEES NOT TO DISCRIMINATE THE BANKS ADMITTED NO WRONGDOING AND HAD NO COMMENT ON THE CHARGES MR. LUDWIG AND ATTORNEY GENERAL JANET RENO PLANNED TO ANNOUNCE THE SETTLEMENTS TODAY WHEN MS. RENO ANNOUNCED THE SUIT AGAINST BLACKPIPE IN NOVEMBER SHE SAID IN MANY CASES DISCRIMINATION HAS BECOME SO INSTITUTIONALIZED AND SUBTLE THAT MANY VICTIMS DON'T KNOW HOW TO ATTACK IT OR THAT IT'S EVEN HAPPENING TO THEM ALTHOUGH DISCRIMINATION MAY BE ACCEPTED AS COMMONPLACE BY SOME IT IS ILLEGAL BY ALL POPE AND TALBOT INCORPORATED REPORTED A SIXTY ONE PERCENT JUMP IN FOURTH QUARTER NET INCOME AND A RETURN TO PROFITABILITY FOR NINETEEN NINETY THREE AND CHAIRMAN PETER POPE SAID IMPROVEMENTS IN PULP AND PAPER SEGMENTS SHOULD DRIVE EARNINGS HIGHER THIS YEAR THE PORTLAND OREGON FOREST PRODUCTS CONCERN POSTED FOURTH QUARTER EARNINGS OF FOUR POINT SIX MILLION DOLLARS OR THIRTY NINE CENTS A SHARE COMPARED WITH A YEAR EARLIER NET OF TWO POINT EIGHT MILLION DOLLARS OR TWENTY FIVE CENTS A SHARE SALES ROSE ELEVEN PERCENT TO ONE HUNDRED FIFTY NINE POINT TWO MILLION DOLLARS FROM ONE HUNDRED FORTY THREE POINT NINE MILLION DOLLARS FOR THE YEAR THE COMPANY HAD NET INCOME OF TWENTY ONE MILLION DOLLARS OR ONE DOLLAR AND EIGHTY CENTS A SHARE COMPARED WITH A YEAR EARLIER NET LOSS OF TWO POINT THREE MILLION DOLLARS OR NINETEEN CENTS A SHARE SALES WERE SIX HUNDRED TWENTY EIGHT POINT NINE MILLION DOLLARS UP SIXTEEN PERCENT FROM A YEAR EARLIER FIVE HUNDRED FORTY FOUR POINT THREE MILLION DOLLARS MR. POPE CITED STRENGTH IN THE LUMBER AND DISPOSABLE DIAPER BUSINESSES WHICH HE SAID SHOULD CONTINUE AND HE PREDICTED BETTER RESULTS IN THE STILL WEAK TISSUE AND PULP SEGMENTS PROGRAM TRADING IN THE WEEK ENDED JANUARY FOURTEENTH ACCOUNTED FOR NINE POINT ONE PERCENT OR AN AVERAGE TWENTY SEVEN POINT SEVEN MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL TWELVE POINT THREE 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 FIFTEEN DIFFERENT STOCKS WITH A TOTAL VALUE OF ONE MILLION DOLLARS OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD THIRTY THREE POINT FIVE PERCENT INVOLVED STOCK INDEX ARBITRAGE UP FROM TWENTY ONE POINT FIVE PERCENT THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCK INDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME FIFTY FOUR POINT FOUR PERCENT OF PROGRAM TRADING WAS EXECUTED BY FIRMS' FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE FORTY TWO POINT FOUR PERCENT WAS FOR THEIR CUSTOMERS AN ADDITIONAL THREE POINT TWO PERCENT WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOST ACTIVE FIRMS NOMURA SECURITIES COOPER NEFF AND SUSQUEHANNA EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND BEAR STEARNS DID MOST OF THEIR TRADING FOR THEIR CUSTOMERS FANTASY AND REALITY QUICKLY BLUR IN QUOTE TREASURE ISLAND THE ADVENTURE BEGINS QUOTE SAY THE PROMOTIONAL MATERIALS FOR A SPECIAL TO BE BROADCAST SUNDAY ON THE N. B. C. NETWORK SO DO ADVERTISING AND ENTERTAINMENT THE PRIME TIME SHOW CHRONICLES A BOY'S VACATION AT TREASURE ISLAND THE NEW PIRATE THEMED LAS VEGAS RESORT AND CASINO OWNED BY MIRAGE RESORTS YOUNG ROBBIE AND HIS FATHER SWORD FIGHT WITH SWASHBUCKLERS AND SEARCH FOR BURIED TREASURE STEPHEN A. WYNN CHAIRMAN AND CHIEF EXECUTIVE OF MIRAGE IS AN EXECUTIVE PRODUCER OF THE TREASURE ISLAND SPECIAL MIRAGE PURCHASED THE ONE HOUR TIME SLOT AS ADVERTISING FROM N. B. C. A UNIT OF GENERAL ELECTRIC COMPANY N. B. C. SAYS IT WASN'T INVOLVED IN THE SHOW'S CONTENTS OTHER THAN A REVIEW BY ITS STANDARDS AND PRACTICES DEPARTMENT N. B. C. AND MIRAGE DECLINE TO COMMENT ON THE PRICE BUT EXECUTIVES ESTIMATE IT TO BE ABOUT ONE POINT SEVEN MILLION DOLLARS COCA COLA COMPANY HAS BOUGHT FOUR MINUTES OF AD TIME IN THE SHOW FROM THE CASINO RESORT OPERATOR SAID A MIRAGE SPOKESMAN AND MIRAGE DONATED ANOTHER TWO MINUTES TO THE LAS VEGAS VISITOR AND CONVENTION AUTHORITY MIRAGE WILL USE THE REMAINING FOUR MINUTES TO RUN COMMERCIALS FOR ITS TREASURE ISLAND AND MIRAGE CASINO RESORTS THE HOURLONG SHOW HAS RAISED EYEBROWS IN ADVERTISING AND BROADCASTING CIRCLES AS THE LATEST AND PERHAPS MOST EXTREME EXAMPLE OF THE MELDING OF ADVERTISING AND ENTERTAINMENT ADVERTORIALS IN MAGAZINES AND PROGRAM LENGTH TELEVISION INFOMERCIALS HAVE LONG PUSHED THE LIMITS OF HOW FAR ADVERTISERS CAN GO TO DISGUISE PITCHES AS INFORMATION AND PRODUCT PLACEMENT IN MOVIES HAS BECOME A BIG BUSINESS AS MANY PRODUCERS OFFSET EXPENSES BY CRAMMING BRAND NAME PRODUCTS INTO SCRIPTS BUT ADVERTISING IS CREEPING INTO ENTERTAINMENT IN EVEN SUBTLER WAYS CRITICS SAY FOR EXAMPLE NICK AND NOEL TOYS R. US'S HALF HOUR HOLIDAY SPECIAL FEATURED A DOG AND CAT THAT ALSO APPEARED IN A BOOK AND VIDEO SOLD IN THE COMPANY'S STORES N. B. C. RECENTLY BEGAN A PRIME TIME SERIES CALLED VIPER WHOSE TITLE CHARACTER IS A CHRYSLER SPORTS CAR TREASURE ISLAND APPEARS TO GO EVEN FURTHER BECAUSE THE CASINO RESORT IS THE SHOW'S CENTERPIECE QUOTE THIS IS REALLY PRETTY BLATANT QUOTE SAYS KATHRYN MONTGOMERY PRESIDENT OF THE PUBLIC ADVOCACY GROUP CENTER FOR MEDIA EDUCATION IT'S CONSISTENT WITH OTHER HOTEL CHAINS AND VACATION PACKAGES THAT MAKE THEIR APPEALS TO KIDS SO THEY WILL INFLUENCE THEIR PARENTS AN N. B. C. SPOKESMAN SAID THE NETWORK PLANS TO AIR A STATEMENT AS PART OF THE CLOSING CREDITS SAYING THAT THE SHOW HAS BEEN SPONSORED BY TREASURE ISLAND PRODUCTIONS INCORPORATED AN N. B. C. SPOKESMAN SAID THE SHOW DOESN'T VIOLATE ANY RULES THIS ISN'T NEW GROUND HE SAYS IT HAS GONE THROUGH ALL THE SAME CHECKS AND BALANCES AS A DISNEY SPECIAL WALT DISNEY COMPANY OPERATES THEME PARKS AND ALSO PRODUCES PROGRAMMING RULES FOR PLUGGING PRODUCTS ON TELEVISION ARE SOMEWHAT MURKY BUT WHEN ADVERTISERS PROVIDE MONEY OR OTHER CONSIDERATION TO A SHOW'S PRODUCERS IN EXCHANGE FOR EXPOSURE THE RELATIONSHIP IS SUPPOSED TO BE DISCLOSED TO VIEWERS TREASURE ISLAND ALSO IS THE EXCEPTION TO THE LONGSTANDING PROHIBITION ON RUNNING ADS FOR A PRODUCT DURING A SHOW FEATURING THE PRODUCT CHRYSLER WHICH SAYS ITS ONLY INVOLVEMENT IN QUOTE VIPER QUOTE IS TO PROVIDE CARS FOR THE SERIES WON'T BE ADVERTISING ANY OF ITS MODELS DURING THE SHOW THE MIRAGE SAYS TREASURE ISLAND ISN'T MEANT TO DRIVE UP NEAR TERM SALES DOES IT CARRY WITH IT PROMOTIONAL VALUE OF COURSE IT DOES SAYS THE MIRAGE SPOKESMAN BUT MORE IN AN IMAGE SENSE THAN IN A DIRECT ADVERTISING SENSE I THINK PEOPLE WILL WATCH IT AND ENJOY IT AND ALONG THE WAY THEY'LL HAVE HEARD OF A HOTEL CALLED TREASURE ISLAND LAST YEAR HOWEVER BOOKINGS SKYROCKETED AT THE PLAZA HOTEL IN MANHATTAN AFTER QUOTE HOME ALONE TWO LOST IN NEW YORK QUOTE DOCUMENTED MACAULAY CULKIN'S ADVENTURES THERE THE PLAZA SAYS IT DIDN'T PAY FOR ITS APPEARANCE IN HOME ALONE TWO IT'S THE SUBTLETY OF PROGRAMS LIKE TREASURE ISLAND THAT DISTURBS CRITICS LIKE DOCTOR MONTGOMERY WE ALREADY KNOW THAT KIDS DON'T KNOW THE DIFFERENCE BETWEEN COMMERCIALS AND PROGRAMMING SHE SAYS THIS IS DESIGNED TO LOOK LIKE A PROGRAM IT'S DESIGNED TO CONFUSE THE MIRAGE SPOKESMAN SAID THE IDEA FOR QUOTE TREASURE ISLAND QUOTE BEGAN WITH PLANS TO IMPLODE THE DUNES HOTEL AS PART OF THE OPENING OF THE TREASURE ISLAND RESORT LAST OCTOBER LET'S FACE IT IT SEEMED LIKE A PRETTY GOOD PUBLICITY STUNT THE SPOKESMAN SAID EFFORTS TO INCLUDE THE DEMOLITION IN A MAJOR MOTION PICTURE DIDN'T PAN OUT SO MR. WYNN TURNED TO MICHAEL OVITZ AND HIS HOLLYWOOD TALENT AGENCY CREATIVE ARTISTS AGENCY TO HELP DEVELOP A PROJECT HIGHLIGHTING THE DUNES DEMOLITION THE IMPLOSION OF THE DUNES IS THE CLIMAX OF THE TREASURE ISLAND SPECIAL MIRAGE HIRED FINNEGAN PINCHUK COMPANY A VETERAN TELEVISION PRODUCTION COMPANY FIFTEEN PRINCIPAL ACTORS AND THE LONDON SYMPHONY ORCHESTRA TO RECORD THE SCORE FOR THE SHOW MIRAGE SAYS IT WILL CONSIDER THE VENTURE A SUCCESS IF IT CAN MATCH THE RATINGS OF SEAQUEST DSV THE STEVEN SPIELBERG SERIES THAT IT PRE EMPTS ACCORDING TO A. C. NIELSEN SEAQUEST HAS ATTRACTED AN AVERAGE AUDIENCE OF TEN POINT FOUR MILLION VIEWERS BUT MARKETING EXPERTS QUESTION WHETHER THAT'S A BIG ENOUGH AUDIENCE TO JUSTIFY THE COST OF MAKING THE TREASURE ISLAND SPECIAL NO COST ESTIMATES WERE AVAILABLE QUOTE THIS IS NOT THE SUPER BOWL OR THE ACADEMY AWARDS QUOTE SAYS CHARLES LISBERGER PRESIDENT OF COURTLEMAGNE COMMUNICATIONS A LOS ANGELES FIRM THAT SPECIALIZES IN TELEVISION AND FILM PLACEMENTS FOR THE TRAVEL INDUSTRY THERE IS NO GUARANTEED AUDIENCE THEY ARE ROLLING THE DICE THAT THEY HAVE CAST IT RIGHT AND FOUND THE RIGHT DIRECTOR AND ENSURED THE RIGHT AUDIENCE IF THEY GUESS WRONG THEY WILL HAVE MADE A MAJOR MISTAKE AD NOTES GENERAL MEDIA INTERNATIONAL ACCOUNT GENERAL MEDIA PUBLISHES MAGAZINES INCLUDING PENTHOUSE LONGEVITY AND OMNI A MULTIMILLION DOLLAR CAMPAIGN FOR PENTHOUSE STARTS NEXT MONTH CIRCUS CIRCUS ENTERPRISES INCORPORATED'S MANAGEMENT UPHEAVAL CONTINUED WITH THE RESIGNATION OF WILLIAM J. PAULOS THE HIGH PROFILE CASINO EXECUTIVE WHO OVERSAW THE OPENING OF THE LAS VEGAS COMPANY'S NEW THREE HUNDRED NINETY MILLION DOLLARS LUXOR RESORT MR. PAULOS FORTY SIX YEARS OLD SAID HE WILL BECOME CHIEF OPERATING OFFICER FOR CROWN CASINO LIMITED AN AUSTRALIAN COMPANY THAT HOLDS THE RIGHT TO BUILD THE FIRST CASINO IN MELBOURNE JOHN O'LOONEY LUXOR'S CASINO MANAGER WAS NAMED TO SUCCEED MR. PAULOS AS THE TOP OPERATING EXECUTIVE AT THE NEW RESORT AND THE CORPORATE SENIOR VICE PRESIDENT'S POSITION REMAINS UNFILLED INVESTORS UNNERVED BY THE DEPARTURE OF ANOTHER OF THE COMPANY'S KEY EXECUTIVES PUSHED CIRCUS SHARES DOWN TWO DOLLARS AND TWENTY FIVE CENTS OR FIVE POINT EIGHT PERCENT TO THIRTY SIX POINT EIGHT SEVEN FIVE DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ALSO CIRCUS SAID KURT SULLIVAN WHO WAS NAMED GENERAL MANAGER OF THE CIRCUS CIRCUS LAS VEGAS LAST OCTOBER WAS NAMED THE COMPANY'S DIRECTOR OF OPERATIONS OVERSEEING ALL EIGHT OF THE COMPANY'S CASINOS SEVERAL ANALYSTS NOTED THAT MR. PAULOS'S DEPARTURE IS THE LATEST IN A STRING OF EXECUTIVE DEPARTURES AT THE CASINO COMPANY IN LESS THAN A YEAR AND UNDERSCORES CONCERN OVER THE COMPANY'S ABILITY TO MANAGE THE AGGRESSIVE GROWTH PLAN IT HAS MAPPED OUT LAST FEBRUARY GLENN W. SCHAEFFER RESIGNED AS PRESIDENT CHIEF FINANCIAL OFFICER AND A DIRECTOR FOLLOWING A CLASH WITH WILLIAM G. BENNETT CIRCUS'S STRONG WILLED CHAIRMAN MR. SCHAEFFER HAD BEEN GROOMED TO SUCCEED MR. BENNETT WHO HAS LONG STATED HIS DESIRE TO RETIRE A MONTH LATER JAMES W. MUIR RESIGNED AS CHIEF OPERATING OFFICER AND A DIRECTOR IN RECENT YEARS OTHER SENIOR EXECUTIVES HAVE LEFT THE COMPANY ABRUPTLY THEY INCLUDE RICHARD P. BANIS AN EARLIER HEIR APPARENT WHO LEFT THE COMPANY IN NINETEEN NINETY ONE AS PRESIDENT AND CHIEF OPERATING OFFICER AND MELVIN LARSON AN EXECUTIVE VICE PRESIDENT AND BOARD MEMBER WHO STEPPED ASIDE THE FOLLOWING YEAR QUOTE IF YOU LOOK AT THE ANNUAL REPORT FROM TWO YEARS AGO THE FOUR SENIOR PEOPLE UNDER BENNETT ARE GONE QUOTE SAID DENNIS FORST AN ANALYST WITH HANCOCK INSTITUTIONAL EQUITY SERVICES LOS ANGELES WHO PULLED HIS QUOTE BUY QUOTE RECOMMENDATION ON THE NEWS CLYDE TURNER CIRCUS'S PRESIDENT AND MR. PAULOS CHARACTERIZED THE DEPARTURE AS AMICABLE MR. PAULOS SAID HIS NEW COMPENSATION PACKAGE WAS VERY VERY GENEROUS AND SAID MR. BENNETT HAD BEEN INCREDIBLY CORDIAL AND WISHED ME LUCK UPON HEARING OF HIS DECISION BUT PEOPLE FAMILIAR WITH THE SITUATION NOTED THAT MR. PAULOS REPEATEDLY HAD BEEN PASSED OVER FOR A TOP CORPORATE TITLE DESPITE HAVING PLAYED A KEY ROLE IN THE OPENING OF EACH OF THE COMPANY'S MAJOR CASINOS IN RECENT YEARS INCLUDING THE COLORADO BELLE IN LAUGHLIN NEVADA AND THE MAMMOTH EXCALIBUR AND LUXOR RESORTS IN LAS VEGAS MR. TURNER SAID THE COMPANY WAS COMFORTABLE WITH ITS MANAGEMENT STRUCTURE AND WOULD CONSIDER FILLING THE CHIEF OPERATING SLOT AT THE APPROPRIATE TIME THE POST HAS BEEN VACANT SINCE MR. MUIR'S DEPARTURE LAST YEAR ANY STATISTIC ON WHO THE UNINSURED ARE IN THIS COUNTRY QUOTE RANKS OF UNINSURED CLIMB QUOTE DECEMBER FIFTEENTH FAILS TO ACKNOWLEDGE ANOTHER CATEGORY OF DESPERATE AMERICANS THOSE WHO ARE QUOTE BARELY QUOTE INSURED AND ARE CLOSE TO BECOMING THE PERMANENTLY UNINSURED HAS ANY NUMBER EVER BEEN PLACED ON THOSE WHO HAVE LITTLE OR MINIMAL MEDICAL COVERAGE YET ARE CHARGED LARGE PREMIUMS AND EVEN UNIMAGINABLY LARGER DEDUCTIBLES MY MOTHER IS CAUGHT IN SUCH A SITUATION A SELF EMPLOYED SEAMSTRESS SHE OFTEN WORKS TEN HOURS A DAY TO SUPPORT HERSELF AND MY DISABLED FATHER SHE IS CONDEMNED TO A LIFE OF PRE EXISTING CONDITION SYNDROME AN AILMENT THAT AUTOMATICALLY DENIES HER INSURANCE COVERAGE FROM ANY CARRIER OTHER THAN THE ONE SHE CURRENTLY HAS HAVING HAD OPEN HEART SURGERY SIX YEARS AGO PREVENTS HER FROM DROPPING A POLICY THAT IS DRAINING HER AND MY FATHER OF THEIR LIFE SAVINGS AND RAPIDLY DECREASING THEIR QUALITY OF LIFE IMAGINE PAYING PREMIUMS OF FIVE HUNDRED DOLLARS A MONTH FOR A POLICY THAT HAS A SIX THOUSAND DOLLAR DEDUCTIBLE NO COVERAGE FOR PRESCRIPTIONS AND NO PREVENTATIVE CARE BENEFITS ALL THIS AND NO GUARANTEE THAT THE COMPANY WILL NOT DROP MY MOTHER IF SHE EVER AGAIN NEEDS CARE MY MOTHER CANNOT AFFORD TO SEE A DENTIST WHICH SHE IS IN DIRE NEED OF AND CANNOT GET REGULAR MAMMOGRAMS AND OTHER REGULAR EXAMS BECAUSE SHE IS SCRAPING EACH MONTH TO PAY HER PREMIUM BUT THE MOST HUMILIATING INJUSTICE HAS BEEN THAT MY MOTHER HAS CEASED TAKING HER HEART MEDICATION BECAUSE SHE CAN NO LONGER AFFORD IT MORE THAN ONE HUNDRED DOLLARS A MONTH THE SITUATION IS WORSE THAN STATISTICS CAN EVER PROVE MANY MORE ARE SUFFERING QUIETLY AND WILL PROBABLY NEVER REAP ANY BENEFITS FROM REFORM THAT IS MUCH TOO OVERDUE AND STILL SEVERAL YEARS AWAY NOBLE AFFILIATES INCORPORATED ARDMORE OKLAHOMA SAID FOURTH QUARTER CHARGES RELATING TO ADJUSTMENTS ON SEVERAL FIELDS MEANS THE COMPANY WILL REPORT NET INCOME FOR THE PERIOD QUOTE AT OR NEAR A BREAK EVEN LEVEL QUOTE IN THE YEAR EARLIER QUARTER NOBLE AFFILIATES HAD NET INCOME OF EIGHT MILLION DOLLARS OR EIGHTEEN CENTS A SHARE ON REVENUE OF SEVENTY SIX POINT EIGHT MILLION DOLLARS THE INDEPENDENT ENERGY COMPANY SAID IT EXPECTED THAT THE NONCASH CHARGES WILL BE ELEVEN POINT SEVEN MILLION DOLLARS THEY INCLUDE A NONCASH PRETAX CHARGE OF FOUR MILLION DOLLARS FROM THE DOWNWARD REVISION OF ABOUT THREE MILLION BARRELS OF PROVED UNDEVELOPED RESERVES ASSOCIATED WITH THE COMPANY'S INTEREST IN THE SAN MIGUEL PROSPECT OFFSHORE CALIFORNIA THE COMPANY ALSO SAID IT IS ADDING FOUR POINT SEVEN MILLION DOLLARS PRETAX TO ITS FOURTH QUARTER DEPRECIATION DEPLETION AND AMORTIZATION EXPENSE TO REDUCE ITS INVESTMENT IN THE CAMAR FIELD OFFSHORE INDONESIA BECAUSE OF A RECENT DROP IN DAILY PRODUCTION THE FRENCH GOVERNMENT SAID IT WILL START SHEDDING CONTROL OF OIL GIANT SOCIETE NATIONALE ELF AQUITAINE WITHIN SEVERAL WEEKS WHEN IT PUTS SIX BILLION DOLLARS OF THE COMPANY'S STOCK ON THE BLOCK THE OFFERING WILL ENTAIL EIGHTY EIGHT POINT FIVE MILLION OF ELF'S TWO HUNDRED FIFTY SEVEN MILLION SHARES HITTING GLOBAL MARKETS IN A SERIES OF TRANCHES THE GOVERNMENT WHICH OWNS FIFTY ONE PERCENT OF THE COMPANY EXPECTS TO RETAIN THIRTEEN PERCENT OWNERSHIP THE OFFERING COMES AT A DIFFICULT TIME FOR THE OIL INDUSTRY WHICH HAS BEEN ENDURING OIL PRICES AT FIVE YEAR LOWS THE TIMING FOR THE COMPANY ISN'T ANY BETTER WITH DEBT CONTINUING TO GROW REACHING ALMOST FIFTY PERCENT OF EQUITY AT THE END OF NINETEEN NINETY THREE AND NET INCOME FOR NINETEEN NINETY THREE REPORTED EARLIER THIS WEEK SLIPPED BY ABOUT EIGHTY TWO PERCENT THE FRENCH GOVERNMENT HASN'T GIVEN THE EXACT DATE WHEN ELF SHARES WILL GO ON SALE BUT THE ACTION IS EXPECTED NEXT MONTH THE GOVERNMENT INTENDS TO PLACE TWENTY TWO MILLION SHARES WITH A CORE GROUP OF STABLE INSTITUTIONAL SHAREHOLDERS EXPECTED TO BE MAINLY MAJOR FRENCH COMPANIES THESE INVESTORS MUST PLEDGE TO HOLD THEIR SHARES FOR SEVERAL YEARS CREATING A TYPE OF POISON PILL TO PREVENT TAKEOVERS RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN UNVEILED HIS NEW CABINET AND TRIED TO REASSURE THE WORLD THAT HIS REVAMPED LINEUP WILL STICK TO A POLICY OF FREE MARKET REFORMS BUT FINANCE MINISTER BORIS FYODOROV'S DECISION TO QUIT THE CABINET AFTER MUCH SOUL SEARCHING IS LIKELY TO WEAKEN THE NEW GOVERNMENT'S REFORMING ZEAL AT A NEWS CONFERENCE MR. CHERNOMYRDIN GAVE DETAILS OF THE NEW CABINET ROSTER WHICH WAS WORKED OUT IN PRIVATE TALKS BETWEEN THE PRIME MINISTER AND RUSSIAN PRESIDENT BORIS YELTSIN THE TWO BELIEVED THAT A RESHUFFLE WAS NECESSARY FOLLOWING THE POOR SHOWING OF PRO REFORM CANDIDATES IN LAST MONTH'S PARLIAMENTARY ELECTIONS MR. CHERNOMYRDIN A CAUTIOUS FORMER INDUSTRIAL BOSS SELECTED A LIKE MINDED FORMER QUOTE APPARATCHIK QUOTE OLEG SOSKOVETS TO SERVE AS HIS FIRST DEPUTY PREMIER BELOW MR. SOSKOVETS ARE THREE DEPUTY PREMIERS ANATOLY CHUBAIS YURI YAROV AND ALEXANDER ZAVERYUKHA THE INCLUSION OF MR. CHUBAIS IN THE UPPER ECHELON SHOULD GIVE RUSSIA'S REFORMERS SOME CAUSE FOR OPTIMISM MR. CHUBAIS WILL RETAIN CONTROL OVER PRIVATIZING RUSSIA'S STATE INDUSTRIES A PROCESS THAT HAS PROCEEDED RAPIDLY DURING THE PAST TWO YEARS DESPITE STIFF POLITICAL OPPOSITION BUT MR. FYODOROV'S ABSENCE IS LIKELY TO BE FELT STRONGLY THE PRIME MINISTER OFFERED TO REAPPOINT MR. FYODOROV AS FINANCE MINISTER BUT MR. FYODOROV SAID HE WOULD TAKE THE JOB ONLY IF BOTH MR. ZAVERYUKHA A FORMER COLLECTIVE FARM DIRECTOR AND CENTRAL BANK CHAIRMAN VIKTOR GERASHCHENKO WERE REMOVED FROM THEIR POSTS WHEN THOSE DEMANDS WEREN'T MET HE QUIT IN A TELEVISED INTERVIEW LAST NIGHT MR. FYODOROV EXPLAINED THAT HE FELT HE COULDN'T WORK EFFECTIVELY IN THE NEW CABINET ATTEMPTS ARE BEING MADE TO STOP THE COURSE OF REFORM AND EVEN TO MOVE BACKWARD HE SAID MR. FYODOROV SAID HE DIDN'T WANT TO SERVE IN A GOVERNMENT WHEN ALL MY TIME WILL BE TAKEN UP STRUGGLING AGAINST GERASHCHENKO OR SOMEBODY ELSE MR. FYODOROV LEAVES AN IMPRESSIVE LEGACY HIS SUPPORTERS CREDIT HIM WITH HELPING TO END THE DAYS OF CHEAP CREDITS FOR STATE ENTERPRISES MOREOVER HE WAS AN IMPORTANT PSYCHOLOGICAL FORCE CONSTANTLY REMINDING HIS CABINET COLLEAGUES THAT BUDGET SPENDING AND INFLATION HAD TO BE CONTROLLED HIS EFFORTS HELPED BRING INFLATION TO TWELVE PERCENT IN DECEMBER FROM THIRTY PERCENT A MONTH EARLIER THE QUESTION NOW IS WHETHER THE CHERNOMYRDIN ADMINISTRATION CAN KEEP A LID ON CHEAP CREDIT ALLOCATIONS IN MR. FYODOROV'S ABSENCE THE BRASH MR. FYODOROV DOESN'T THINK SO HE PREDICTED THAT WITHOUT HIS PRESENCE IN THE GOVERNMENT INFLATION WILL RISE AGAIN TO THIRTY PERCENT A MONTH BY APRIL HE ALSO PREDICTED THAT THE RUBLE WHICH STRENGTHENED SOMEWHAT THURSDAY TO CLOSE AT ONE THOUSAND FIVE HUNDRED FIFTY THREE TO THE DOLLAR WILL PLUMMET BY THE END OF THE YEAR TO TWELVE THOUSAND MR. CHERNOMYRDIN WAS MORE SANGUINE HE PLAYED DOWN THE ROLE OF ANY INDIVIDUALS IN HIS CABINET SAYING THAT REFORMS WERE IRREVERSIBLE DESPITE THE LOSS OF TWO KEY REFORMERS THIS WEEK RUSSIA'S REFORM ARCHITECT YEGOR GAIDAR RESIGNED SUNDAY FROM HIS POSTS OF ECONOMICS MINISTER AND FIRST DEPUTY PREMIER MR. CHERNOMYRDIN INDICATED OBLIQUELY THE PACE OF REFORM MIGHT BE SLOWED BUT ALSO OUTLINED SEVERAL POLICIES THAT SHOW A COMMITMENT TO FURTHER REFORM HE CALLED FOR STIMULATING PRIVATE INVESTMENT AND ENTREPRENEURSHIP AND FOR CLOSING UNPROFITABLE PRODUCERS A STEP THAT MR. GAIDAR FAILED TO CARRY OUT MR. CHERNOMYRDIN IDENTIFIED CONTROLLING INFLATION AS HIS NUMBER ONE TASK WE HAVE NO ILLUSIONS HE SAID THERE WILL NOT BE THE KINDS OF EASY CREDITS THAT WOULD BRING A SPIRAL OF INFLATION BY RELYING PRIMARILY ON QUOTE NONMONETARY QUOTE METHODS MR. CHERNOMYRDIN PREDICTS HE CAN BRING THE MONTHLY INFLATION RATE AFTER A TEMPORARY SPURT TO ABOUT EIGHT PERCENT TO NINE PERCENT BY THE END OF THE YEAR THOSE NONMONETARY METHODS HE INDICATED WILL FOCUS ON PROMOTING COMPETITION AS A MEANS TO BRING PRICES DOWN HE PROMISED TO LIFT CERTAIN ARTIFICIAL IMPORT BARRIERS TO ALLOW A FREER INFLUX OF FOREIGN PRODUCTS TO COMPETE WITH DOMESTICALLY PRODUCED GOODS BUT CONTROLLING INFLATION WILL BE A CHALLENGE AS LONG AS MR. GERASHCHENKO CONTINUES TO HEAD THE CENTRAL BANK ALTHOUGH HE IS JUST ONE OF MANY PLAYERS RESPONSIBLE FOR RUSSIA'S INFLATIONARY WOES HE MAINTAINS A CRITICAL SEMI INDEPENDENT ROLE IN THE PROCESS UNLIKE MOST OTHER CENTRAL BANKERS WORLD WIDE MR. GERASHCHENKO INTERPRETS HIS FUNCTION AS HELPING TO KEEP INDUSTRIES AFLOAT RATHER THAN SIMPLY PROTECTING THE CURRENCY IN A DECREE YESTERDAY ON THE GOVERNMENT'S REORGANIZATION MR. YELTSIN OFFICIALLY REAPPOINTED THE CENTRAL BANK CHIEF SUCCEEDING MR. GAIDAR AS ECONOMICS MINISTER WILL BE ALEXANDER SHOKHIN A MODERATE WHO ISN'T LIKELY TO PUSH RADICAL REFORMS MOST RECENTLY MR. SHOKHIN HAS BEEN RESPONSIBLE FOR HANDLING NEGOTIATIONS ON RUSSIA'S DEBT AND ON ITS RELATIONS WITH FOREIGN LENDING INSTITUTIONS VAUGHN D. BRYSON ABRUPTLY OUSTED AS ELI LILLY AND COMPANY'S CHIEF EXECUTIVE IN A BOARDROOM COUP LAST SUMMER WAS NAMED VICE CHAIRMAN OF VECTOR SECURITIES INTERNATIONAL INCORPORATED AN INVESTMENT BANKING CONCERN VECTOR BASED IN DEERFIELD ILLINOIS SPECIALIZES IN HEALTH CARE AND BIOTECHNOLOGY BUSINESSES IT WAS FOUNDED IN NINETEEN EIGHTY EIGHT BY THREE FORMER KIDDER PEABODY AND COMPANY EXECUTIVES BESIDES UNDERWRITING STOCK OFFERINGS AND MANAGING INVESTMENT FUNDS VECTOR REPRESENTS MEDICAL COMPANIES IN FORGING DEALS TO ACQUIRE NEW TECHNOLOGIES IT HELPED ONE CLIENT F. HOFFMANN LA ROCHE LIMITED ACQUIRE THE CRUCIAL QUOTE POLYMERASE CHAIN REACTION QUOTE TECHNOLOGY THAT MAY OVERHAUL THE WAY HOSPITAL LABORATORIES DIAGNOSE DISEASES SUCH AS AIDS AND HEPATITIS VECTOR OFFICIALS SAID THEY'RE HOPING THE INDUSTRY KNOWLEDGE AND CONTACTS OF MR. BRYSON WILL BE HELPFUL IN ACQUIRING MORE SUCH BUSINESS AS WELL AS MERGER DEALS IN THE QUICKLY CONSOLIDATING HEALTH CARE FIELD MR. BRYSON FIFTY FIVE YEARS OLD WHO AGREED TO JOIN THE FIRM EFFECTIVE APRIL FIRST WILL SERVE ON ITS EXECUTIVE COMMITTEE I THOUGHT BEING AT A FAST GROWING ENTREPRENEURIAL COMPANY WOULD BE A LOT OF FUN SAID MR. BRYSON I'VE HAD THIRTY TWO YEARS OF THE OTHER I ALSO THINK THERE'S A ROLE FOR COMPANIES LIKE VECTOR IN FACILITATING ALLIANCES IN HEALTH CARE WHERE WE'RE GOING TO SEE FURTHER CONSOLIDATION EVEN SO TINY VECTOR WITH ITS FIFTY EMPLOYEES WILL BE A BIG CHANGE FOR MR. BRYSON WHO FOR TWENTY MONTHS RAN A SIX POINT TWO BILLION DOLLAR A YEAR PHARMACEUTICAL CONCERN WITH THIRTY TWO THOUSAND WORKERS AS LILLY'S PRESIDENT AND C. E. O. MR. BRYSON RAPIDLY BROUGHT A COLLEGIAL ATMOSPHERE TO A ONCE AUTHORITARIAN AND CONSERVATIVE COMPANY NOT GIVEN TO CHANGE THE MOTTO OF ELI LILLY THE THIRD CHAIRMAN UNTIL NINETEEN SIXTY EIGHT WAS WHENEVER IN DOUBT DON'T DO IT MR. BRYSON ALSO APPROVED NUMEROUS ALLIANCES WITH SMALLER FIRMS THE SORT VECTOR IS SEEKING TO ARRANGE WITH OTHER MEDICAL COMPANIES DURING HIS TENURE AS CHIEF EXECUTIVE OFFICER EARNINGS SLIPPED AT INDIANAPOLIS BASED LILLY ALTHOUGH SEVERAL FACTORS CONTRIBUTING TO THE SLIDE HAD BEEN BUILDING FOR YEARS THE MAIN REASON FOR HIS FIRING IN THE VIEW OF MANY LILLY EXECUTIVES WAS THAT THE NEW COLLEGIALITY FOSTERED BY THE POPULAR MR. BRYSON IRKED HIS PREDECESSOR RICHARD D. WOOD WHO THEN MAINTAINED THE TITLE OF CHAIRMAN SEVERAL COMPANY EXECUTIVES AND DIRECTORS SAY MR. WOOD WHO DECLINED COMMENT CHAFED UNDER THE CHANGES AND ENGINEERED THE OUSTER IN JUNE TWO BABY BELLS REPORTED WEAKER RESULTS FOR THE FOURTH QUARTER MAINLY REFLECTING THEIR ONGOING RESTRUCTURING TO BECOME MORE COMPETITIVE AND PROFITABLE U. S. WEST INCORPORATED WHICH IS BASED IN DENVER REPORTED SLIMMER THAN EXPECTED EARNINGS FOR THE FOURTH QUARTER BUT SHOWED HEALTHY GROWTH IN ACCESS LINES AND MINUTES OF USAGE TWO BAROMETERS OF A BABY BELL'S FINANCIAL HEALTH U. S. WEST SAID NET INCOME DROPPED THIRTEEN PERCENT TO TWO HUNDRED SIXTY FOUR POINT ONE MILLION DOLLARS OR SIXTY TWO CENTS A SHARE FROM THREE HUNDRED THREE POINT SIX MILLION DOLLARS OR SEVENTY THREE CENTS A SHARE A YEAR EARLIER THE NINETEEN NINETY TWO QUARTER INCLUDED A ONE TIME GAIN OF FORTY ONE POINT SEVEN MILLION DOLLARS EXCLUDING LAST YEAR'S GAIN U. S. WEST SAID ITS OPERATING PROFIT WAS UP SLIGHTLY FROM TWO HUNDRED SIXTY ONE POINT NINE MILLION DOLLARS IN NINETEEN NINETY TWO FOURTH QUARTER REVENUE WAS TWO POINT SIX SEVEN BILLION DOLLARS UP SIX PERCENT FROM TWO POINT FIVE ONE BILLION DOLLARS A YEAR EARLIER PACIFIC TELESIS GROUP THE SECOND REGIONAL BELL OPERATING COMPANY REPORTED A FOURTH QUARTER LOSS OF THREE HUNDRED NINETY ONE MILLION DOLLARS OR NINETY TWO CENTS A SHARE COMPARED WITH NET INCOME OF TWO HUNDRED EIGHTY SEVEN MILLION DOLLARS OR SEVENTY ONE CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER INCLUDED A ONE POINT OH ONE BILLION DOLLAR RESTRUCTURING CHARGE EXCLUDING SPECIAL CHARGES THE SAN FRANCISCO BASED COMPANY SAID EARNINGS WOULD HAVE DECREASED JUST THREE PERCENT TO TWO HUNDRED SEVENTY NINE MILLION DOLLARS REVENUE ROSE ONE PERCENT IN THE FOURTH QUARTER TO TWO POINT THREE BILLION DOLLARS FROM TWO POINT TWO SEVEN BILLION DOLLARS A YEAR EARLIER THE NUMBER OF ACCESS LINES IN U. S. WEST'S FOURTEEN STATE TERRITORY WHICH STRETCHES ACROSS THE COLORADO ROCKIES TO THE SHORES OF PUGET SOUND GREW THREE POINT SEVEN PERCENT TO THIRTEEN POINT EIGHT MILLION BILLED MINUTES OF USAGE GREW NINE POINT ONE PERCENT TO TWELVE POINT FIVE MILLION QUOTE I WAS PLEASANTLY SURPRISED ON HOW HEALTHY THE ECONOMIC REGION IS QUOTE SAID STEVEN YANIS THE TELECOMMUNICATIONS ANALYST FOR KIDDER PEABODY AND COMPANY JACK GRUBMAN A TELECOMMUNICATIONS ANALYST AT PAINEWEBBER NOTED THAT U. S. WEST'S GROWTH IN CASH FLOW AND CELLULAR SUBSCRIBERS WERE BOTH ABOVE AVERAGE INDICATING GOOD THINGS BEHIND THE NUMBERS FOR THE YEAR U. S. WEST REPORTED A NET LOSS OF TWO POINT EIGHT BILLION DOLLARS OR SIX DOLLARS AND SIXTY NINE CENTS A SHARE COMPARED WITH A LOSS OF SIX HUNDRED FOURTEEN MILLION DOLLARS OR ONE DOLLAR AND FORTY NINE CENTS A SHARE IN NINETEEN NINETY TWO THE NINETEEN NINETY THREE EARNINGS INCLUDE THIRD QUARTER CHARGES OF ONE BILLION DOLLARS FOR RESTRUCTURING AND A SEPARATE THREE POINT TWO BILLION DOLLAR CHARGE FOR ACCOUNTING CHANGES U. S. WEST ALSO TOOK A ONE HUNDRED MILLION DOLLAR CHARGE DURING THE SECOND QUARTER TO COVER COSTS ASSOCIATED WITH DISCONTINUING A FINANCIAL SERVICES BUSINESS A MOVE THAT WAS APPLAUDED ON WALL STREET THE BABY BELL ANNOUNCED PLANS LAST YEAR TO INVEST TWO POINT FIVE BILLION DOLLARS FOR A TWENTY FIVE PERCENT STAKE IN TIME WARNER INCORPORATED'S ENTERTAINMENT UNIT THAT DEAL WAS FINALIZED IN SEPTEMBER EARLIER THIS MONTH U. S. WEST SAID IT PLANNED TO BUILD NEW MULTIMEDIA NETWORKS IN TWENTY CITIES OVER THE NEXT FIVE YEARS STARTING WITH A SEVEN HUNDRED FIFTY MILLION DOLLAR EFFORT IN FOUR CITIES FOR THE YEAR PACIFIC TELESIS REPORTED A NET LOSS OF ONE POINT FIVE BILLION DOLLARS OR THREE DOLLARS AND SIXTY THREE CENTS A SHARE IN NINETEEN NINETY TWO THE BABY BELL REPORTED NET INCOME OF ONE POINT ONE FOUR BILLION DOLLARS OR TWO DOLLARS AND EIGHTY THREE CENTS A SHARE REVENUE WAS UP SLIGHTLY TO NINE POINT TWO FOUR BILLION DOLLARS PACIFIC TELESIS WHICH IS IN THE PROCESS OF SPINNING OFF ITS CELLULAR UNIT PROVIDES LOCAL TELEPHONE SERVICES IN CALIFORNIA AND NEVADA THE SPINOFF IS EXPECTED TO BE COMPLETED THIS SPRING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING U. S. WEST ROSE FIFTY CENTS TO FORTY THREE POINT SIX TWO FIVE DOLLARS AND PACIFIC TELESIS CLOSED AT FIFTY SEVEN DOLLARS UP EIGHTY SEVEN POINT FIVE CENTS DEFIANCE INCORPORATED EXPECTS PER SHARE EARNINGS IN THE MID SEVENTY CENTS AREA BEFORE ACCOUNTING CHANGES FOR THE YEAR ENDING JUNE THIRTIETH AN ARTICLE YESTERDAY INCORRECTLY CALLED THE ACCOUNTING CHANGES CHARGES BROOKE GROUP LIMITED'S MARKET PRICE DECLINED SIXTEEN POINT SEVEN PERCENT IN THE QUARTER ENDED DECEMBER THIRTY FIRST AFTER ADJUSTING FOR A SPINOFF OF SKYBOX INTERNATIONAL IN THE JANUARY THIRD EDITIONS THE COMPANY WAS INCORRECTLY INCLUDED IN THE LIST OF TEN WORST PERFORMING ISSUES ON THE NEW YORK STOCK EXCHANGE R. X. MEDICAL SERVICES CORPORATION ERRONEOUSLY WAS INCLUDED AMONG THE TOP TEN GAINERS ON THE AMERICAN STOCK EXCHANGE FOR THE FOURTH QUARTER BECAUSE ITS PRICE WASN'T ADJUSTED FOR A ONE FOR FOUR REVERSE SPLIT THE LIST WAS PUBLISHED IN THE EDITIONS OF JANUARY THIRD J. WALTER THOMPSON AN ADVERTISING AGENCY BASED IN NEW YORK IS OWNED BY W. P. P. GROUP YESTERDAY'S ADVERTISING COLUMN INCORRECTLY SAID IT IS OWNED BY OMNICOM GROUP THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND ONE SIXTEENTH PERCENT HIGH TWO AND FIVE EIGHTHS PERCENT LOW TWO AND SEVEN EIGHTHS PERCENT NEAR CLOSING BID THREE PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH SIX PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH EIGHT PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT ONE OH PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE FOUR PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO THREE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FIFTY NINE DAYS THREE POINT THREE TWO PERCENT TWO HUNDRED SIXTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE FOUR PERCENT THIRTY DAYS THREE POINT ONE FIVE PERCENT SIXTY DAYS THREE POINT ONE EIGHT PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE TWO PERCENT ONE MONTH TWO POINT FIVE FIVE PERCENT TWO MONTHS TWO POINT FIVE SIX PERCENT THREE MONTHS TWO POINT SIX NINE PERCENT SIX MONTHS TWO POINT NINE FIVE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH TWO PERCENT ONE MONTH THREE POINT OH SEVEN PERCENT THREE MONTHS THREE POINT TWO TWO PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH TWO PERCENT THIRTY DAYS THREE POINT OH FOUR PERCENT SIXTY DAYS THREE POINT OH SEVEN PERCENT NINETY DAYS THREE POINT OH NINE PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE FOUR PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE EIGHT PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FOUR MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT FIVE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT THREE AND FIVE SIXTEENTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT SIX MONTHS THREE AND THREE QUARTERS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT NINE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY JANUARY EIGHTEENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE NINE PERCENT THIRTEEN WEEKS THREE POINT ONE FIVE PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT FIVE PERCENT SIXTY DAYS SIX POINT NINE THREE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT FIVE PERCENT SIXTY DAYS SIX POINT NINE FIVE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT OH FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN FOUR PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS TELEFONOS DE MEXICO S. A. WILL EXPAND ITS LINE NETWORK BY TWELVE PERCENT OR ABOUT NINE HUNDRED THOUSAND LINES IN NINETEEN NINETY FOUR TO EIGHT POINT THREE MILLION LINES ACCORDING TO THE COMPANY'S PROGRAM PUBLISHED BY THE MEXICAN COMMUNICATIONS AND TRANSPORTATION MINISTRY THE EXPANSION IS SET BY THE TERMS OF THE MEXICAN TELECOMMUNICATIONS COMPANY'S DECEMBER NINETEEN NINETY PRIVATIZATION TELMEX PREVIOUSLY REPORTED THAT IT WOULD SPEND SEVEN POINT FIVE BILLION NEW PESOS TWO POINT FOUR TWO BILLION DOLLARS ON CAPITAL IMPROVEMENTS IN NINETEEN NINETY FOUR TELMEX WILL ADD THIRTY ONE THOUSAND PUBLIC TELEPHONES THIS YEAR TO REACH A DENSITY OF TWO PUBLIC PHONES FOR EACH ONE THOUSAND RESIDENTS THE COMPANY ALSO WILL ADD MORE THAN TWO THOUSAND ONE HUNDRED MILES OF FIBER OPTIC LINES THAT WILL COMPLETE WORK ON TELMEX'S EIGHT THOUSAND FOUR HUNDRED MILE FIBEROPTIC TRUNK NETWORK CONNECTING THE NATION'S FIFTY FOUR PRINCIPAL CITIES TELMEX ALSO PLANS TO INCORPORATE AN ADDITIONAL THREE THOUSAND RURAL COMMUNITIES WITH MORE THAN FIVE HUNDRED INHABITANTS EACH INTO ITS NETWORK THIS YEAR REACHING A TOTAL OF NINETEEN THOUSAND SUCH COMMUNITIES WHEN COMPUTER SYSTEMS MALFUNCTION THE RESULTS CAN BE NIGHTMARISH CAR ACCIDENTS MEDICAL MISDIAGNOSES BOTCHED ACCOUNTING AND INVENTORY LISTS FOR LAWYERS THIS MEANS BIG NEW OPPORTUNITIES FOR HIGHSTAKES LITIGATION QUOTE THERE'S ACTUALLY MORE OPPORTUNITY FOR TECHNOLOGY TO MALFUNCTION NOW THAN THERE WAS TEN OR FIFTEEN YEARS AGO QUOTE SAYS CLYDE QUOTE BUZZ QUOTE H. WILSON JUNIOR A COMPUTER LITIGATION SPECIALIST IN SARASOTA FLORIDA WHO CONDUCTS SEMINARS FOR LAWYERS ON HOW TO PRESENT COMPUTER PERFORMANCE CASES TO JURIES AS TECHNOLOGY BECOMES MORE PERVASIVE AND COMPLEX HE SAYS IT IS MORE LIKELY TO FAIL THE CONSEQUENCE AN EMERGING LEGAL NICHE FOR CLIENTS SEEKING DAMAGES DUE TO MALFUNCTIONING COMPUTER SYSTEMS IN THE TWENTY FIRST CENTURY COMPUTER PERFORMANCE IS GOING TO PLAY A ROLE IN MOST LITIGATION PREDICTS BRUCE BIERHANS A BOSTON PLAINTIFFS' LAWYER WHO IS HEAD OF A COMPUTER VENDOR LIABILITY GROUP AT THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA HE POINTS TO AN AUTO ACCIDENT SUIT HE INVESTIGATED LAST WEEK INVOLVING A WOMAN WHO INJURED HER NECK WHEN HER CAR SKIDDED INTO A TELEPHONE POLE SHE BLAMES FAULTY BRAKES TO PROVE THE ALLEGATION MR. BIERHANS WILL LOOK NOT ONLY AT THE BRAKE CYLINDERS AND LININGS BUT ALSO AT THE VEHICLE'S COMPUTER ASSISTED ANTILOCK SYSTEM WHAT I'M TRYING TO DO IS BEGIN TO EDUCATE MORE TORT LAWYERS IN LINKING COMPUTER PERFORMANCE TO TRADITIONAL TORT CASES HE SAYS THE NEW LITIGATION IS DRIVING SOFTWARE VENDORS TO BE MORE CAUTIOUS IN WHAT THEY PROMISE IN THEIR CONTRACTS AND BUYERS TO BE MORE REALISTIC IN WHAT THEY EXPECT SO FAR THE BIGGEST LAWSUITS LINK COMPANIES' LOST PROFITS TO ALLEGEDLY FAULTY SOFTWARE IN A TRIAL THAT HAS BEEN GOING ON SINCE LAST SEPTEMBER IN NEW JERSEY SUPERIOR COURT IN JERSEY CITY KANE CARPET COMPANY FORMERLY THE FOURTHLARGEST CARPET DISTRIBUTOR IN THE NATION IS CLAIMING THAT A THREE HUNDRED EIGHT THOUSAND DOLLAR COMPUTER SYSTEM IT BOUGHT IN NINETEEN EIGHTY EIGHT FOR INVENTORY CONTROL WENT HAYWIRE PLUNGED THE COMPANY INTO CHAOS AND DROVE IT OUT OF BUSINESS IN SEVENTEEN MONTHS IT WAS LIKE TAKING A PERFECTLY HEALTHY HUMAN BEING AND PUTTING IN A DEFECTIVE PART SAYS KANE'S ATTORNEY MARC S. FRIEDMAN OF THE ROSELAND N. J. FIRM OF FRIEDMAN AND SIEGELBAUM LOST ASSETS AND CONSEQUENTIAL DAMAGES INCLUDING THE DIMINISHED VALUE OF THE COMPANY AND MONEY NOW OWED TO CREDITORS EXCEED THIRTY SEVEN MILLION DOLLARS HE CONTENDS THE DEFENDANT IN THE CASE A NOW DEFUNCT DIVISION OF MCDONNELL DOUGLAS CORPORATION MAINTAINS THAT KANE WAS ALREADY ON A SLIPPERY FINANCIAL SLOPE WHEN IT BOUGHT THE SOFTWARE AND THAT THE SOFTWARE DIDN'T CAUSE THE COLLAPSE IN SUCH CASES PART OF THE PROBLEM BETWEEN SOFTWARE VENDORS AND USERS IS ONE OF DEPENDENCY USERS FIND THEMSELVES AT THE VENDORS' MERCY A COMPUTER COMPANY CAN TAKE OVER A BUSINESS BECAUSE IT'S THE ONLY ENTITY THAT KNOWS WHAT'S GOING ON SAYS HANK BARRIE A SAN FRANCISCO COMPUTER PERFORMANCE LITIGATOR AT THE FIRM OF COOLEY GODWARD CASTRO HUDDLESON AND TATUM LAWYERS FOR SOFTWARE MANUFACTURERS COUNTER THAT MANY BUYERS HAVE UNREALISTIC EXPECTATIONS COMMUNICATE THEIR NEEDS POORLY OR CHANGE THEIR MINDS ABOUT WHAT THEY WANT THEIR COMPUTERS TO DO IN TALLAHASSEE FLORIDA E. D. S. CORPORATION A UNIT OF GENERAL MOTORS CORPORATION IS SUING THE STATE DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES FOR WITHHOLDING A FORTY SIX MILLION DOLLAR PAYMENT FOR THE DESIGN AND INSTALLATION OF THE NATION'S LARGEST SOCIAL SERVICES COMPUTER IN A COUNTERSUIT ALLEGING BREACH OF CONTRACT THE STATE AGENCY CONTENDS THAT THE COMPUTER ENDED UP COSTING MORE THAN TWICE THE ORIGINAL ESTIMATE AND THAT THE SYSTEM STILL ISN'T POWERFUL ENOUGH TO HANDLE THE STATE'S NEEDS AT THE CORE OF THE PROBLEM WAS A NINETEEN EIGHTY EIGHT STATE PROJECTION OF HOW MANY FLORIDA RESIDENTS WOULD REQUIRE STATE AID BY THE TIME THE COMPUTER WAS ON LINE FIVE YEARS LATER IT TURNED OUT TO BE WILDLY SHORT OF THE MARK LEADING TO ERRORS IN PAYMENT AND DELAYS THAT RESULTED IN SEVENTEEN POINT FIVE MILLION DOLLARS IN FEDERAL PENALTIES LEVIED ON THE STATE E. D. S. SAYS IT DELIVERED WHAT IT PROMISED AND BLAMES THE STATE QUOTE IT JUST SHOWS THAT WHEN YOU'VE GOT A COMPLICATED SYSTEM YOU'VE GOT TO HAVE WORKABLE NEEDS TO ADAPT TO CHANGING ASSUMPTIONS QUOTE SAYS E. D. S. ATTORNEY JOHN RADEY OF THE TALLAHASSEE FIRM OF AURELL RADEY HINKLE THOMAS AND BERANEK DENNIS DEAN ASSISTANT ATTORNEY GENERAL COUNTERS THAT IN ITS RUSH TO WIN THE LUCRATIVE STATE JOB E. D. S. PROMISED MORE THAN IT COULD DELIVER COMPUTER COMPANIES CAN'T SAY NO SAYS MR. DEAN YOU GO TO THEM AND THEY SAY SURE WE CAN DO THAT AND SOMETIMES THEY HAVE PROBLEMS IN COMING THROUGH DISPUTES AS COMPLEX AS THIS UNDERSCORE THE IMPORTANCE OF DRAFTING CONTRACTS THAT CLEARLY SPELL OUT WHAT IS BEING PROVIDED THE COST AND WHAT LIMITS ON LEGAL REMEDIES AND DAMAGES APPLY SO VENDORS COMPUTER LAW EXPERTS SAY INCREASINGLY INSIST ON CONTRACT CLAUSES AND WARRANTY DISCLAIMERS THAT BAR DAMAGES FOR ANYTHING BEYOND THE OUT OF POCKET COST OF PURCHASING THE SYSTEM THESE CLAUSES SEEK TO PRECLUDE DAMAGES FOR ECONOMIC LOSSES THAT THE BUYER MAY SUSTAIN BECAUSE A COMPUTER SYSTEM DOESN'T MEET ITS NEEDS LAST JUNE A NEW YORK APPEALS COURT THREW OUT A FIVE POINT FOUR MILLION DOLLAR DAMAGE AWARD TO METROPOLITAN LIFE INSURANCE COMPANY BECAUSE OF A CLAUSE IN ITS CONTRACT WITH A VENDOR IN ROSELAND N. J. NOBLE LOWNDES INTERNATIONAL INCORPORATED THE CONTRACTED SOFTWARE PROGRAM WAS NEVER COMPLETED ALLEGEDLY COSTING METROPOLITAN FIVE POINT FOUR MILLION DOLLARS IN EXPENSES AND SAVINGS THAT IT ANTICIPATED HAD THE CLAIMS PROCESSING SOFTWARE PERFORMED AS PROMISED THE APPEALS COURT RULED THAT UNDER ITS CONTRACT METROPOLITAN WAS ONLY ENTITLED TO WHAT IT HAD ACTUALLY PAID THE VENDOR TWO HUNDRED FOUR THOUSAND DOLLARS THAT RULING AND OTHERS LIKE IT ARE FORCING PLAINTIFFS' LAWYERS TO TRY CIRCUMVENTING CONTRACT PROVISIONS IN LAWSUITS OVER COMPUTER PERFORMANCE BY ALLEGING FRAUD OR MISREPRESENTATION IT'S FAIR TO SAY THAT IN MOST COMPUTER COMPANIES THERE ARE STRONG INCENTIVES ON THE PART OF SOME SALES PEOPLE TO OVERSELL THE SYSTEM SAYS MR. REESE THAT IS WHAT IS BEING ALLEGED IN KANE CARPET'S LAWSUIT ACCORDING TO THE SUIT THE VENDOR ASSURED KANE THAT ITS SOFTWARE WAS CUSTOM TAILORED TO THE FLOOR COVERING DISTRIBUTION INDUSTRY WHEN THE SYSTEM SWITCHED ON IN MARCH NINETEEN EIGHTY NINE THE COMPANY CLAIMS CHAOS ENSUED WE WERE TELLING CUSTOMERS WE COULDN'T FILL THEIR ORDERS WHEN WE HAD THE STOCK AND THAT WE COULD FILL THEIR ORDERS WHEN WE DIDN'T HAVE THE STOCK SAYS FORMER ADMINISTRATIVE SYSTEMS MANAGER JIM SLATTERY IN A BUSINESS WHERE PROMPT AND RELIABLE DELIVERY TO RETAILERS IS CRUCIAL IT DIDN'T TAKE LONG FOR KANE'S CUSTOMERS TO FIND OTHER DISTRIBUTORS THERE WAS NO WAY TO RECOVER SAYS MR. SLATTERY QUOTE WE HAD DESTROYED OUR CREDIBILITY WITH THE BULK OF OUR CUSTOMERS QUOTE VANNA WHITE WON A JURY VERDICT OF FOUR HUNDRED THREE THOUSAND DOLLARS AGAINST SAMSUNG ELECTRONICS COMPANY AND ITS ADVERTISING AGENCY IN A CASE THAT EXPANDS CELEBRITIES' PROTECTION FROM UNAUTHORIZED USES OF THEIR LIKENESSES THE FEDERAL COURT JURY IN LOS ANGELES SAID THE SOUTH KOREAN COMPANY AND THE ADVERTISING AGENCY DEUTSCH SLASH DWORIN INCORPORATED VIOLATED MS. WHITE'S RIGHT OF PUBLICITY WITH AN ADVERTISEMENT DEPICTING A LETTER TURNING ROBOT IN A VANNA LIKE WIG AND GOWN MS. WHITE WHO IS A STAR OF THE TELEVISION SHOW WHEEL OF FORTUNE DIDN'T GIVE PERMISSION FOR THE AD WHICH BORE THE CAPTION LONGEST RUNNING GAME SHOW TWO THOUSAND TWELVE A. D. AND WHICH WAS INTENDED TO SUGGEST THE LONG LIFE OF SAMSUNG PRODUCTS MS. WHITE WON COMPENSATORY DAMAGES OF TWO HUNDRED FIVE THOUSAND DOLLARS FROM SAMSUNG AND ONE HUNDRED NINETY EIGHT THOUSAND DOLLARS FROM DEUTSCH SLASH DWORIN NEW YORK THE COMPANIES DECLINED TO COMMENT ON THE JURY'S FINDINGS DEUTSCH SLASH DWORIN SAID IT PROBABLY WON'T APPEAL IN A NOTABLE DECISION IN THE CASE LAST YEAR THE NINTH U. S. CIRCUIT COURT OF APPEALS EXPANDED ON EARLIER RULINGS THAT STOPPED ADVERTISERS FROM USING CELEBRITY FACES AND NAMES WITHOUT PERMISSION THE COURT SAID CELEBRITIES ALSO HAVE THE RIGHT TO CONTROL LIKENESSES OF THEMSELVES SUCH AS THE LETTER TURNING ROBOT PHILIP M. COWAN HEAD OF THE NEW YORK STATE BAR SECTION ON ENTERTAINMENT LAW SAID ADVERTISERS HAVE SINCE BECOME MORE CAUTIOUS ABOUT APPROPRIATING CELEBRITY IMAGES A FEDERAL JUDGE IN HOUSTON OVERTURNED TWO NEW TEXAS LAWS THAT WERE DESIGNED TO KEEP LAWYERS AND DOCTORS FROM RUSHING TO SOLICIT BUSINESS FROM ACCIDENT VICTIMS ONE OF THE MEASURES WOULD BAR LAWYERS HEALTH PROFESSIONALS AND PRIVATE INVESTIGATORS FROM WRITING TO ACCIDENT VICTIMS TO SOLICIT THEIR BUSINESS WITHIN THIRTY DAYS OF THE ACCIDENT THE PROVISION ALSO WOULD BAR WRITTEN SOLICITATIONS OF CRIMINAL DEFENDANTS WITHIN THIRTY DAYS OF THEIR ARREST THE SECOND MEASURE WOULD KEEP LAWYERS AND HEALTH PROFESSIONALS FROM OBTAINING ACCESS TO AN ACCIDENT REPORT WITHIN ONE HUNDRED EIGHTY DAYS OF AN ACCIDENT BUT INSURANCE AGENTS AND NEWS REPORTERS WOULD HAVE IMMEDIATE ACCESS THE LAWS WERE CHALLENGED BY LAWYERS CHIROPRACTORS AND ORGANIZATIONS THAT RESEARCH PUBLIC RECORDS FOR A FEE U. S. DISTRICT JUDGE DAVID HITTNER WHO IN AUGUST TEMPORARILY ENJOINED ENFORCEMENT OF THE MEASURES THIS WEEK RULED THAT THEY VIOLATED THE FIRST AMENDMENT'S PROTECTION OF COMMERCIAL SPEECH A SPOKESWOMAN FOR THE TEXAS ATTORNEY GENERAL'S OFFICE SAID SHE EXPECTED THE STATE TO APPEAL THE RULING MARY MOORE ET AL. VERSUS DAN MORALES ET AL. U. S. DISTRICT COURT HOUSTON CIV NUMBER H. NINETY THREE TO TWO THOUSAND ONE HUNDRED SEVENTY JUNDA WOO AND ARTHUR BUCKLER CONTRIBUTED TO THIS ARTICLE BROOKE GROUP LIMITED'S MARKET PRICE DECLINED SIXTEEN POINT SEVEN PERCENT IN THE QUARTER ENDED DECEMBER THIRTY FIRST AFTER ADJUSTING FOR A SPINOFF OF SKYBOX INTERNATIONAL IN THE JANUARY THIRD EDITIONS THE COMPANY WAS INCORRECTLY INCLUDED IN THE LIST OF TEN WORST PERFORMING ISSUES ON THE NEW YORK STOCK EXCHANGE R. X. MEDICAL SERVICES CORPORATION ERRONEOUSLY WAS INCLUDED AMONG THE TOP TEN GAINERS ON THE AMERICAN STOCK EXCHANGE FOR THE FOURTH QUARTER BECAUSE ITS PRICE WASN'T ADJUSTED FOR A ONE FOR FOUR REVERSE SPLIT THE LIST WAS PUBLISHED IN THE EDITIONS OF JANUARY THIRD NEW YORK LIFE INSURANCE COMPANY SAID IT SOLD THE BULK OF ITS CANADIAN INSURANCE BUSINESS TO CANADA LIFE ASSURANCE COMPANY IN WHAT IS SEEN AS AN EARLY STEP IN AN EXPECTED WAVE OF CONSOLIDATION IN CANADA'S OVERLY CROWDED LIFE INSURANCE INDUSTRY TERMS WEREN'T DISCLOSED NEW YORK LIFE A U. S. MUTUAL LIFE INSURER THAT HAS DONE BUSINESS IN CANADA SINCE ONE THOUSAND EIGHT HUNDRED FIFTY EIGHT IS EXITING FROM THIS MARKET AT A TIME WHEN SALES OF NEW LIFE INSURANCE POLICIES ARE STAGNATING AND COMPANIES' PROFIT MARGINS ARE BEING ERODED BY STIFF COMPETITION THE INDUSTRY IS EXPECTED TO FACE ADDITIONAL PRESSURES AS THE COUNTRY'S BIG BANKS BUILD UP THEIR OWN INSURANCE UNDERWRITING OPERATIONS FOLLOWING FINANCIAL DEREGULATION LAST YEAR QUOTE BECAUSE OF THE LACK OF MARKET GROWTH IN CANADA THERE ARE TOO MANY INSURANCE CARRIERS GOING AFTER BUSINESS OUR SIZE IS SUCH THAT WE REALLY DON'T HAVE THE APPROPRIATE CRITICAL MASS TO COMPETE SAID SEYMOUR STERNBERG EXECUTIVE VICE PRESIDENT AT NEW YORK LIFE'S HEAD OFFICE THE COMPANY WHICH DOES NINETY FIVE PERCENT OF ITS BUSINESS IN THE U. S. WILL CONTINUE TO OPERATE IN SOME FASTER GROWING MARKETS OVERSEAS ESPECIALLY THE FAR EAST HE SAID NEW YORK LIFE HAS ASSETS IN CANADA OF ONE POINT TWO FIVE BILLION CANADIAN DOLLARS NINE HUNDRED FIFTY FOUR POINT THREE MILLION U. S. DOLLARS AND WRITES ABOUT ONE HUNDRED EIGHTY FIVE MILLION CANADIAN DOLLARS OF NEW BUSINESS ANNUALLY MAINLY IN THE INDIVIDUAL LIFE SECTOR THE COMPANY WILL RETAIN A SMALL GROUP LIFE INSURANCE POLICY BUSINESS THAT WILL BE RUN OUT OF ITS NEW YORK OFFICE CANADA LIFE IN TORONTO IS ONE OF THE COUNTRY'S LARGEST LIFE INSURERS WITH TWENTY TWO BILLION CANADIAN DOLLARS IN ASSETS THE COMPANY SAID THE ACQUISITION REFLECTS ITS DRIVE TO INCREASE MARKET SHARE AND IMPROVE ITS ECONOMIES ESPECIALLY IN CLAIMS PROCESSING SLIM PROFIT MARGINS HAVE CAUSED A FEW PLAYERS TO ABANDON CANADA'S PROPERTY AND CASUALTY INSURANCE MARKET ANALYSTS AND INDUSTRY OFFICIALS PREDICT THAT A SIMILAR SHAKEOUT IN THE LIFE INSURANCE MARKET WILL CAUSE AS MANY AS HALF OF CANADA'S ONE HUNDRED FIFTY LIFE INSURERS TO DISAPPEAR OR BE SWALLOWED UP WEIGHING HEAVILY ON THE INDUSTRY'S FUTURE ARE THE COUNTRY'S BIG BANKS WHICH ARE EXPECTED TO BUILD UP LOW COST DISTRIBUTION SYSTEMS THROUGH THEIR OWN INSURANCE SUBSIDIARIES WITHIN A FEW YEARS CANADIAN IMPERIAL BANK OF COMMERCE THE COUNTRY'S SECOND LARGEST BANK ALREADY HAS LAUNCHED ITS OWN INSURANCE COMPANY IN COMPETITION WITH THE TRADITIONAL INDUSTRY PLAYERS THOMAS SOWELL HOOVER INSTITUTION FELLOW IN THE NOVEMBER NINETEENTH NEW YORK POST WHAT THE WELFARE STATE IS SAYING WHETHER IN THIS NEW QUOTE HEALTH SECURITY ACT QUOTE OR IN A THOUSAND OTHER PROGRAMS IS THAT WE ARE NOT TO BE A NATION OF INDEPENDENT PEOPLE CONTROLLING OUR OWN LIVES BUT A NATION OF CLIENTS WHOSE LIVES ARE CONTROLLED BY BUREAUCRATS DISPENSING TAXPAYERS' MONEY ACCORDING TO THE VISION OF THE ANOINTED THIS IS NOT A NEW IDEA HOWEVER MUCH THE ADVOCATES OF THE WELFARE STATE PROCLAIM CHANGE MOST OF THE HISTORY OF THE HUMAN RACE HAS BEEN A HISTORY OF THE MASSES OF ORDINARY PEOPLE HAVING THEIR LIVES CONTROLLED AND THEIR DESTINY DECIDED BY SOME ELITE IT HAS TAKEN CENTURIES OF STRUGGLE AGONY SACRIFICE AND BLOODSHED TO GET OUT FROM UNDER THE THUMB OF THOSE WHO ACTED AS IF THEY HAD BEEN BORN INTO THIS WORLD BOOTED AND SPURRED TO RIDE MANKIND NOW WE ARE TURNING AROUND AND HEADING BACKWARD TOWARD A WORLD WHERE PEOPLE'S FATES ARE NOT IN THEIR OWN HANDS BUT IN THE HANDS OF SOME PUFFED UP POLITICAL LEADERS AS STARCHY CORPORATE DRESS CODES CRUMBLE AND QUOTE CASUAL FRIDAYS QUOTE SPREAD TO MORE OFFICES MALE WARDROBE ANXIETY IS ON THE RISE THE MENSWEAR INDUSTRY THINKS IT HAS THE ANSWER A NEW CATEGORY OF CLOTHING DUBBED CORPORATE CASUAL DESIGNED TO BRIDGE THE GAP BETWEEN PINSTRIPES AND JEANS BY PUTTING A STYLISH NEW SPIN ON EVERYTHING FROM SPORT COATS TO NECKTIES MENSWEAR MARKETERS HOPE TO REGAIN SOME OF THE BUSINESS THEY LOST AS SALES OF TAILORED SUITS DROPPED FIFTEEN PERCENT FROM NINETEEN EIGHTY NINE TO NINETEEN NINETY TWO THE TRICK WILL BE RE EDUCATING A CUSTOMER WHO IS A BIT AT SEA SARTORIALLY SPEAKING MANY MEN ARE BEFUDDLED BY THE RELAXATION OF LONG ESTABLISHED DRESS FOR SUCCESS RULES STRIPPED OF THEIR SUITS THEY WONDER HOW DO YOU PRESENT YOURSELF AS SUCCESSFUL PROFESSIONAL AND A HOT SHOT SAYS MICHAEL CLINTON PUBLISHER OF G. Q. MAGAZINE BUT INDISPUTABLY THE BUSINESS SUIT HAS LOST SOME OF ITS VERSATILITY WHEN INVITATIONS TO LAST MONTH'S CHRISTMAS PARTY AT WESTCHESTER COUNTY MEDICAL CENTER IN VALHALLA N. Y. CALLED FOR CASUAL DRESS DOCTORS HUDDLED OVER SUITABLE ATTIRE WE AGREED THAT WE WEREN'T GOING TO WEAR SUITS BUT THAT'S ABOUT AS FAR AS WE GOT RECALLS LOUIS ROSE A THIRTY EIGHT YEAR OLD ORTHOPEDIST DOCTOR ROSE CONSIDERED THREE OUTFITS BEFORE SETTLING ON A DOUBLE BREASTED NAVY SUIT AND WHITE SILK T. SHIRT OTHER DOCTORS TURNED UP IN EVERYTHING FROM BLAZERS AND SPORT COATS TO JEANS THE TWO MEN IN SUITS AND TIES REALLY STUCK OUT DOCTOR ROSE SAYS ADDING IT'S ALWAYS A STRUGGLE WHEN THEY SAY DRESS CASUALLY IT'S NOT THAT YOU WANT TO DRESS TO KILL YOU JUST WANT TO FIT IN QUOTE MINDFUL THAT MANY MEN ARE FLOUNDERING AND TO SPUR FURTHER SALES OF ITS SUCCESSFUL DOCKERS BRAND CASUAL LINE LEVI STRAUSS AND COMPANY IS URGING BUSINESSES TO GIVE EMPLOYEES MORE GUIDANCE IT'S ALSO CULTIVATING THE CORPORATE MANAGERS WHO SET DRESS CODES INVITING INQUIRIES FROM THEM ON A SPECIAL TOLL FREE TELEPHONE LINE LAST DECEMBER THE COMPANY MAILED A NEWSLETTER AND QUESTIONNAIRE TO THOUSANDS OF CORPORATE HUMAN RESOURCE EXECUTIVES THE POINT WAS TO HELP COMPANIES DETERMINE WHAT CASUAL WEAR IS RIGHT FOR THEM AND HOW THEY CAN GO ABOUT INSTITUTING CASUAL DRESS CODES A LEVI STRAUSS SPOKESMAN SAYS THE MAILING INCLUDED A PICTORIAL GUIDE TO CASUAL BUSINESS WEAR FEATURING WHAT ELSE LEVI'S AND DOCKERS PANTS AND SHIRTS THE DOCKERS DIVISION HAS GROWN TO A ONE BILLION DOLLAR BUSINESS IN SEVEN YEARS DESPITE WIDESPREAD UNCERTAINTY OVER SHIFTING OFFICE FASHION MORE CORPORATE SUITS ARE LOOSENING UP IN THE WORKPLACE IN A SURVEY LAST FALL OF MEN WHO REGULARLY WEAR SUITS FOR BUSINESS THIRTY EIGHT PERCENT SAID THAT THEY WERE BUYING MORE CASUAL CLOTHES FOR WORK ACCORDING TO KURT SALMON ASSOCIATES APPAREL CONSULTANTS AND AT THE EIGHTY STORE BROOKS BROTHERS CHAIN SPORT COAT SALES GREW TWENTY FOUR PERCENT LAST YEAR WHILE SUIT SALES WERE DOWN THREE PERCENT THIS YEAR MANY MENSWEAR MARKETERS WILL CAPITALIZE ON THE TREND BY INTRODUCING ENTIRE COLLECTIONS OF CASUAL BUSINESS ATTIRE THE SEARCH FOR AN IN BETWEEN WARDROBE HARKS BACK TO THE NINETEEN SEVENTIES WHEN MENSWEAR DESIGNERS DREAMED UP THE LEISURE SUIT A SHIRT STYLE JACKET AND MATCHING PANTS THAT MEN WORE TO RESTAURANTS AND PARTIES ALTHOUGH IT LATER BECAME A FASHION JOKE IN ITS HEYDAY MANY MEN LIKED THE LEISURE SUIT'S LOOSE FITTING JACKET WHICH COVERED MEN'S EMBARRASSMENT OVER THEIR GUTS SAYS RICHARD MARTIN A FASHION HISTORIAN AND THE CURATOR OF THE COSTUME INSTITUTE OF THE METROPOLITAN MUSEUM IN NEW YORK AS THE NINETEEN NINETIES ANSWER TO THE LEISURE SUIT THE CORPORATE CASUAL LOOK IS HARDER TO PULL OFF BECAUSE IT CAN'T BE PURCHASED OFF THE RACK IT REQUIRES MEN TO ACCESSORIZE AND TO COORDINATE SEPARATE PIECES TO MIX TWEEDS WITH DENIM OR T. SHIRTS WITH BLAZERS AND TO PAIR SUCH OUTFITS WITH THE NEW FUN TIES FEATURING BOLD GRAPHICS IN A WORD THE LOOK TAKES FLAIR RETAILERS LIKE THE IDEA BECAUSE THE COST OF THE VARIOUS PIECES IN A CASUAL ENSEMBLE CAN ADD UP TO MORE THAN THE PRICE OF A TAILORED SUIT MANY DEPARTMENT STORES ARE BANKING HEAVILY ON A NEW TAILORED CLOTHING COLLECTION BEING MARKETED BY HARTMARX CORPORATION IN A LICENSING AGREEMENT WITH DESIGNER TOMMY HILFIGER WHO HAS BOUTIQUES IN FIVE HUNDRED DEPARTMENT STORES DEPARTING FROM THAT OLD STANDBY THE NAVY TWO BUTTON BLAZER MR. HILFIGER HAS ADDED WHAT HE CALLS TWISTS TO A FALL LINE OF SPORT COATS THAT WILL RETAIL FOR TWO HUNDRED SIXTY FIVE DOLLARS AND UP THE THREE BUTTON OR FOUR BUTTON SPORT COATS COME IN COLORFUL PLAIDS STRIPES AND PATTERNS WITH SUCH FLOURISHES AS ROUNDED VELVETEEN COLLARS SLEEVES OF CONTRASTING COLORS AND PRINTED LININGS MR. HILFIGER ALSO OFFERS REVERSIBLE VESTS DRESS SLACKS AND PATTERNED DRESS SHIRTS MANUFACTURED BY OXFORD INDUSTRIES QUOTE THIS IS A COLLECTION THAT IS SOPHISTICATED AND WEARABLE AND AT THE RIGHT PRICE QUOTE SAYS JOHN SADLIER A SENIOR VICE PRESIDENT AT THE TWO HUNDRED SEVENTEEN STORE FEDERATED DEPARTMENT STORES INCORPORATED CHAIN FEDERATED PLANS TO INTRODUCE THE COLLECTION IN ITS LARGER STORES IN JULY A NUMBER OF MENSWEAR COMPANIES ARE BRINGING OUT NEW SPORTSWEAR LABELS DESIGNED TO REMIND MEN OF THE GLARING GAP IN THEIR WARDROBES SHIRT MAKER PHILLIPS VAN HEUSEN CORPORATION FOR EXAMPLE HAS INTRODUCED CORPORATE CASUAL COLLECTION BY VAN HEUSEN A LINE OF LOOSE FITTING SHIRTS MANY WITH PATCH POCKETS AND TEXTURED WEAVES THE SHIRTS WERE FEATURED IN A FIVE PAGE ADVERTORIAL HEADLINED THE NEW DRESS CODE THAT RAN IN THE DECEMBER ISSUE OF G. Q. MAGAZINE CASUAL TROUSERS ARE MAKING INROADS IN CORPORATE SUITES THANKS IN PART TO A NEW MACHINE WASHABLE COTTON TREATED TO RESIST WRINKLES AND RETAIN A CREASE HAGGAR CORPORATION AND FARAH INCORPORATED WERE AMONG THE MANUFACTURERS THAT BROUGHT OUT NO IRON PANTS LAST YEAR HAGGAR WHICH BACKED ITS INTRODUCTION WITH A TWELVE MILLION DOLLAR ADVERTISING CAMPAIGN SOLD MORE THAN SEVENTY FIVE MILLION DOLLARS OF THE TROUSERS LAST YEAR EVEN BROOKS BROTHERS IS BREAKING WITH TRADITION PROMOTING THE NOTION THAT BUSINESS SUITS DON'T ALWAYS MAKE THE MAN IN ONE OF ITS RECENT ADS HEADLINED LIGHT ON THE STARCH A MAN WEARING A CASHMERE TURTLENECK AND TWEED SPORT COAT IS SHOWN STANDING BESIDE A MAN IN A DENIM SHIRT AND POLKA DOT TIE THE COPY READS IS THE SPORT COAT A C. E. O. OR A NEW MINTED M. B. A. IS THAT THE SOFTWARE KING IN THE BAGGY PANTS OR A CORPORATE V. P. IN FRIDAY TRIM SUCCESS TODAY IS OFTEN OUT OF UNIFORM BUT WEARS THE SAME LABEL IT HAS FOR ONE HUNDRED SEVENTY FIVE YEARS AT SOME COMPANIES SUCH MESSAGES ARE ALREADY OLD HAT THE COMPUTER SOFTWARE INDUSTRY IN PARTICULAR GREW UP WITHOUT EVER ESTABLISHING A BUTTONED UP TRADITION AND ALUMINUM COMPANY OF AMERICA ADOPTED A CASUAL DRESS CODE AT ITS PITTSBURGH HEADQUARTERS IN NINETEEN NINETY ONE ON ANY GIVEN DAY ABOUT HALF THE MALE EMPLOYEES THERE WEAR SWEATERS BLAZERS AND OPEN COLLARED SHIRTS WE DON'T EVEN THINK ABOUT THE DRESS CODE ANYMORE SAYS AN ALCOA SPOKESMAN BUT ELSEWHERE DOUBTS PERSIST MANY BUDDING EXECUTIVES WORRY THAT A LAID BACK LOOK COULD JEOPARDIZE THEIR CORPORATE CLIMB BERT HAND THE CHAIRMAN OF HARTMARX TELLS OF ONE COMPANY THAT RESCINDED ITS CASUAL FRIDAY POLICY BY POPULAR DEMAND THE COMPANY'S HUMAN RESOURCE DIRECTOR TOLD MR. HAND THAT MALE EMPLOYEES QUOTE DIDN'T WANT TO BE JUDGED BECAUSE THEY WORE THE WRONG SWEATER QUOTE THE MEXICAN GOVERNMENT WILL PUT FOUR COMPANIES ON THE AUCTION BLOCK THIS YEAR IN THE LAST LEG OF SOME TWENTY FOUR BILLION DOLLARS IN PRIVATIZATIONS SINCE NINETEEN EIGHTY SEVEN THE COMPANIES ODDS AND ENDS OF THE PRIVATIZATION EFFORT ARE EXPECTED TO FETCH A TOTAL OF ABOUT TWO HUNDRED SIXTY MILLION DOLLARS AFTER THAT QUOTE WE'RE CLOSING QUOTE SAYS JORGE SILBERSTEIN AN OFFICIAL IN THE GOVERNMENT'S OFFICE OF PRIVATIZATION HERE UP FOR SALE WILL BE OCEAN GARDEN A SEAFOOD TRADING COMPANY THAT FAILED TO ATTRACT HIGH BIDS WHEN THE GOVERNMENT TRIED TO SELL IT LAST FALL THREE PAPER MILLS A NEWSPAPER CHAIN WITH FIVE PUBLICATIONS WHICH ALSO RECENTLY FAILED TO ATTRACT A PRICE ACCEPTABLE TO THE GOVERNMENT AND A SYSTEM OF WAREHOUSES SITTING ON LAND ALL AROUND MEXICO WORTH LOTS AND LOTS OF MONEY ACCORDING TO MR. SILBERSTEIN MR. SILBERSTEIN SAYS THERE IS STRONG INTEREST IN OCEAN GARDEN TODAY FROM INTERNATIONAL INVESTORS AND HE EXPECTS INTEREST FROM SOME BIG U. S. PAPER COMPANIES TO BE AMONG THE BIDDERS FOR THE PAPER MILLS RULES FOR THESE TWO AUCTIONS WILL BE OUT IN ABOUT THREE WEEKS THE GOVERNMENT'S LAND HOLDINGS MAY BE SOLD IN PIECES AND THE NEWSPAPERS WE HAVEN'T FIGURED OUT WHAT TO DO HE SAYS MORE INTRIGUING THAN THESE SALES IS THE QUESTION ABOUT WHAT THE GOVERNMENT WILL DO WITH STATE OWNED OIL GIANT PETROLEOS MEXICANOS THE POWER COMPANY AND THE RAILROADS THESE PROPERTIES ARE CONSIDERED STRATEGIC ASSETS BY THE GOVERNMENT AND PROTECTED FROM SALE BY THE MEXICAN CONSTITUTION MR. SILBERSTEIN POINTS OUT THEN HE ADDS SMILING BUT SO WERE THE BANKS UNTIL MEXICO CHANGED THE LAW AND SOLD THEM FOR TWELVE BILLION DOLLARS IN NINETEEN NINETY TWO RIGHT NOW PEMEX ISN'T GOING TO BE SOLD MR. SILBERSTEIN SAYS BUT HE NOTES THAT THE OIL COMPANY IS ALSO LOOKING AT JOINT VENTURES AND SALES OF SOME ASSETS ALSO THERE ARE RUMORS IN MEXICAN FINANCIAL CIRCLES THAT THE GOVERNMENT IS SEEKING A HIGH PROFILE LEADER FOR PEMEX PERHAPS PEDRO ASPE THE CURRENT FINANCE MINISTER AND A FORMER PRESIDENTIAL CANDIDATE MEXICAN BANKING EXECUTIVES THINK MR. ASPE OR SOMEONE OF HIS STATURE WILL PREPARE PEMEX FOR A SALE AT SOME POINT DURING THE NEXT PRESIDENTIAL TERM THE MEXICAN GOVERNMENT WILL ALSO PUSH FORWARD THE PRIVATIZATION OF ITS PORTS AND AIRPORTS THIS YEAR CURRENTLY THE GOVERNMENT IS ATTEMPTING TO SET UP PORT AUTHORITIES SO THE AIRPORTS AND PORTS CAN RUN AS INDEPENDENT BUSINESSES THE RAILROADS AND THE POWER COMPANIES ARE ALSO TAKING SMALL STEPS TOWARD PRIVATIZATION BY CONSIDERING JOINT VENTURES WITH PRIVATE COMPANIES FOR INVESTORS IN MEXICAN STOCKS THE BIG QUESTION IS WHAT THE GOVERNMENT WILL DO WITH ITS TWO POINT TWO BILLION DOLLARS POSITION IN BANK SHARES LEFT OVER FROM THE PRIVATIZATIONS THE LARGEST STAKE IS A TWENTY POINT THREE EIGHT PERCENT ONE POINT EIGHT BILLION DOLLARS HOLDING IN BANCOMER MEXICO'S SECOND LARGEST BANK THE BANCOMER STAKE CONSISTS OF SERIES L. SHARES THAT AREN'T PUBLICLY TRADED BUT INVESTMENT BANKERS SAY BANCOMER WILL LIST SHARES ON THE NEW YORK STOCK EXCHANGE THIS SUMMER RIGHT AROUND THE TIME WHEN BANK EARNINGS AND BANK STOCKS SHOULD BE ON THE REBOUND HERE THE GOVERNMENT ALSO HOLDS A SIX POINT ONE SEVEN PERCENT TWO HUNDRED TWENTY MILLION DOLLAR STAKE IN GRUPO FINANCIERO SERFIN WHICH TRADES ON THE NEW YORK STOCK EXCHANGE AND A TWENTY ONE POINT OH FOUR PERCENT STAKE IN BANCO INTERNACIONAL THE WHOLE IDEA IS FOR US TO NOT HAVE ANY SHARES MR. SILBERSTEIN SAYS BUT SALES OF BIG BLOCKS OF STOCK SUCH AS THESE ARE DELICATE BECAUSE THEY CAN PRESSURE SHARE PRICES INVESTORS CRITICIZED THE MEXICAN GOVERNMENT FOR ITS SECOND PUBLIC OFFERING OF TELEFONOS DE MEXICO BECAUSE THE STOCK PRICE FELL MR. SILBERSTEIN BRUSHES ASIDE THE COMPLAINTS QUOTE THERE ARE BULLS BEARS AND PIGS QUOTE HE SAYS THE GOVERNMENT HAS TO TAKE PROFITS SOMEWHERE HE ADDS THAT THE GOVERNMENT HAS NO IMMEDIATE PLANS FOR ITS THIRTY FOUR PERCENT STAKE IN MEXICANA AIRLINES NOTING THAT THE STOCK PRICE IS TOO LOW AN INDEPENDENT COUNSEL SAID HE WOULD QUESTION THE CLINTONS UNDER OATH ROBERT FISKE JUNIOR APPOINTED TO INVESTIGATE THE PRESIDENT'S INVESTMENT IN WHITEWATER DEVELOPMENT PROMISED A QUOTE COMPLETE THOROUGH AND IMPARTIAL QUOTE PROBE OF THE AFFAIR FISKE A FORMER U. S. ATTORNEY IN NEW YORK WAS NAMED BY ATTORNEY GENERAL RENO WHO CALLED HIM AN EXCELLENT PROSECUTOR WHO IS RUGGEDLY INDEPENDENT FISKE PERSONALLY WROTE THE CHARTER THAT OUTLINES HIS DUTIES AND AUTHORIZES HIM TO INVESTIGATE WHETHER ANY INDIVIDUALS OR ENTITIES HAVE COMMITTED A VIOLATION OF ANY FEDERAL CRIMINAL LAW RELATING TO THE WHITEWATER CASE FISKE SAID HE WILL INVESTIGATE THE SUICIDE OF FORMER WHITE HOUSE DEPUTY COUNSEL FOSTER TO THE EXTENT IT INVOLVES WHITEWATER RELATED EVENTS CALIFORNIA RESIDENTS FACE THE LIKELIHOOD OF HIGHER TAXES TO COVER SOME OF THE REPAIRS FROM MONDAY'S QUAKE WHICH CAUSED DAMAGE OF UP TO THIRTY BILLION DOLLARS CLINTON RELEASED AN ADDITIONAL ONE HUNDRED MILLION DOLLARS FOR ROAD REPAIRS AND AUTHORIZED THE U. S. GOVERNMENT TO CONTINUE PAYING ONE HUNDRED PERCENT OF CERTAIN SHELTER AND FOOD COSTS RUSSIA'S FINANCE MINISTER QUIT YELTSIN'S CABINET CHARGING THAT ATTEMPTS ARE BEING MADE TO STOP THE COURSE OF REFORM AND EVEN TO MOVE BACKWARD BUT PRIME MINISTER CHERNOMYRDIN IN ANNOUNCING HIS NEW CABINET MINISTERS TRIED TO REASSURE THE WORLD THAT THE GOVERNMENT WILL STICK TO ITS MARKET REFORMS FEDERAL GOVERNMENT OFFICES ARE DUE TO REOPEN IN WASHINGTON THIS MORNING AFTER A ONE DAY HOLIDAY AT THE REQUEST OF LOCAL UTILITIES WHICH FEARED A MASSIVE POWER FAILURE BECAUSE OF A COLD WAVE A WEEKLONG COLD SPELL AFFECTING THE MIDWEST NORTHEAST AND PARTS OF THE SOUTH HAS BEEN BLAMED FOR AT LEAST ONE HUNDRED THIRTEEN DEATHS CHRISTOPHER PLANS TO UNDERSCORE U. S. SUPPORT FOR IMPLEMENTING A PACT ON PALESTINIAN SELF RULE WHEN HE MEETS WITH P. L. O. CHIEF ARAFAT AND ISRAEL'S FOREIGN MINISTER IN OSLO TOMORROW THE SECRETARY OF STATE WILL ATTEND THE FUNERAL OF NORWEGIAN FOREIGN MINISTER HOLST WHO PLAYED A KEY ROLE IN TALKS THAT LED TO THE P. L. O. ISRAELI ACCORD ISRAEL'S RABIN DENIED HE EVER PLEDGED TO RETAIN THE GOLAN HEIGHTS AND HE SAID THAT A DECISION ON EXCHANGING THE STRATEGIC PLATEAU FOR PEACE WITH SYRIA WOULD HAVE TO BE MADE THIS YEAR THE PRIME MINISTER'S STATEMENTS APPEARED TO BE PART OF A CAMPAIGN TO GRADUALLY ACCUSTOM ISRAELIS TO THE PROSPECT OF LOSING THE TERRITORY JAPAN'S PARLIAMENT WAS POISED TO VOTE TODAY ON PRIME MINISTER HOSOKAWA'S PACKAGE OF POLITICAL REFORM BILLS WHICH WOULD ALTER THE RULES THAT HAVE GOVERNED JAPANESE POLITICS SINCE WORLD WAR TWO THE VOTE IS EXPECTED TO BE CLOSE WITH LIKELY DEFECTIONS THREATENING THE GOVERNMENT'S THIN PARLIAMENTARY MAJORITY CLINTON'S FISCAL NINETEEN NINETY FIVE BUDGET WILL PROPOSE SHIFTING HUD RESOURCES TOWARD CARING FOR THE HOMELESS AND AWAY FROM PUBLIC HOUSING PROGRAMS ALTHOUGH DETAILS HAVEN'T BEEN DISCLOSED PUBLIC HOUSING ADVOCATES ALREADY ARE PROTESTING THE EXPECTED CUTS IN THEIR PROGRAMS THE EUROPEAN PARLIAMENT CALLED FOR THE DISMISSAL OF LORD OWEN THE EUROPEAN UNION'S MEDIATOR TO THE YUGOSLAV PEACE PROCESS SAYING THAT HE HAS BEEN INEFFECTIVE THE PARLIAMENT WHOSE OPINION ISN'T BINDING ON THE E. U. ALSO URGED THE USE OF MILITARY INTERVENTION TO PROTECT BOSNIAN CIVILIANS OWEN SAID HE HAD NO INTENTION OF QUITTING CHINA HAS AGREED TO ENFORCE COMPLIANCE WITH INTERNATIONAL COPYRIGHT LAWS IN ORDER TO CURTAIL THE PRODUCTION OF COUNTERFEIT COMPACT DISKS TREASURY SECRETARY BENTSEN SAID AFTER MEETINGS IN BEIJING ALSO CHINA AND THE U. S. REACHED A VERBAL ACCORD AIMED AT PREVENTING THE EXPORT OF GOODS MADE WITH PRISON LABOR HE SAID HONG KONG'S GOVERNOR ACCUSED CHINA OF BEING IRRATIONAL IN TALKS ON THE BRITISH COLONY'S FUTURE AND INDICATED BRITAIN WOULDN'T MAKE ANY MORE CONCESSIONS PATTEN ALSO TOLD A PARLIAMENTARY PANEL IN LONDON THAT BRITAIN WOULD PUBLISH ITS VERSION OF WHY TALKS WITH CHINA HAD BROKEN DOWN IF THE CHINESE DON'T RESUME NEGOTIATIONS VIETNAM AND THE U. S. AGREED TO HOLD TALKS AIMED AT SETTLING TWO HUNDRED FIFTY MILLION DOLLARS IN U. S. CLAIMS STEMMING FROM THE NINETEEN SEVENTY FIVE COMMUNIST VICTORY SEPARATELY THE CLINTON ADMINISTRATION IS EXPECTED TO RELEASE SOON A U. S. INTELLIGENCE ANALYSIS THAT COULD LEAD TO THE LIFTING OF AN EMBARGO AGAINST HANOI IN THE COMING WEEKS A YEAR LONG EFFORT BY THE CLINTON ADMINISTRATION SHOULD CULMINATE IN THE SCRAPPING OF COCOM THE SEVENTEEN MEMBER COORDINATING COMMITTEE ON MULTILATERAL EXPORT CONTROLS THE EXPORT CONTROL FRAMEWORK THAT HAS DOMINATED EAST WEST RELATIONS FOR THE PAST FORTY FIVE YEARS IT MAY WELL BE TIME TO REPLACE COCOM THE ROOTS OF WHICH WERE IN THE COLD WAR BUT A PARTIAL OR POOR REPLACEMENT OF THE NONPROLIFERATION FRAMEWORK THAT HAS WORKED WELL FOR NEARLY HALF A CENTURY COULD RESULT IN U. S. BUSINESS LOSING BILLIONS OF DOLLARS OF HIGH TECH EXPORTS IN SUCH CRITICAL INDUSTRIES AS COMPUTERS TELECOMMUNICATIONS AND BIOTECHNOLOGY ALTHOUGH THE PRESIDENT IS EXPECTED TO FINALIZE THE TERMS OF COCOM'S SUCCESSOR SOON THE ADMINISTRATION'S PLANS HAVE BEEN FAR FROM CLEAR BUT AN OUTLINE IS EMERGING IN PARTICULAR THE ADMINISTRATION APPEARS READY TO ABANDON A KEY ASPECT OF THE SYSTEM THAT ENSURED A LEVEL PLAYING FIELD FOR EXPORTERS FROM ALL MEMBER COUNTRIES IT ALSO APPEARS READY TO CONTINUE TO IMPOSE ON U. S. INDUSTRY SIGNIFICANT UNILATERAL RESTRICTIONS ON CERTAIN EXPORTS AS A RESULT WESTERN EUROPEAN AND JAPANESE COMPETITORS COULD MOVE INTO MARKETS IN THE FORMER SOVIET STATES AND CHINA THAT WILL REMAIN OFF LIMITS TO U. S. COMPANIES THESE COMPETITORS COULD SUPPLANT THE U. S. AS THE SUPPLIER OF CHOICE IN THESE MARKETS THE IMPACT ON THE PROFITABILITY AND ULTIMATE TECHNOLOGICAL LEADERSHIP OF U. S. EXPORTERS FROM INTERNATIONAL BUSINESS MACHINES CORPORATION AND AMERICAN TELEPHONE AND TELEGRAPH COMPANY TO START UP VENTURES COULD BE SIGNIFICANT TO UNDERSTAND THE PROBLEM IT HELPS TO TAKE A LOOK AT HOW COCOM HAS WORKED ONE OF ITS MOST IMPORTANT FEATURES HAS BEEN ITS RULE OF UNANIMITY OR QUOTE SINGLE MEMBER VETO QUOTE IF A U. S. COMPANY WANTED TO SELL A CONTROLLED ITEM SUCH AS AN ADVANCED COMPUTER TO A WARSAW PACT COUNTRY COCOM FIRST HAD TO APPROVE THE EXPORT IMPORTANTLY COCOM OPERATED ON A VETO BASIS UNDER WHICH ANY SINGLE MEMBER COULD BLOCK THE EXPORT OF A CONTROLLED ITEM TO A TARGET COUNTRY THUS IF THE SOVIET UNION OR NORTH KOREA OR CHINA FACED AN EMBARGO OF A CERTAIN KIND OF TECHNOLOGY SAY OPTICAL FIBER CABLE IT COULD NOT PURCHASE IT FROM ANY COCOM MEMBER IF GERMANY WANTED TO SELL TECHNOLOGY TO THE SOVIET UNION THE U. S. OR ANY OTHER MEMBER OF COCOM COULD SINGLY BLOCK THE MOVE BUT JUST AS EASILY GERMANY COULD UNILATERALLY BLOCK A U. S. SALE FOR ITS MEMBERS THE SYSTEM HAS BEEN RESTRICTIVE AND DRACONIAN BUT FAIR THE CLINTON ADMINISTRATION'S PLANS FOR A SUCCESSOR REFLECT CHANGES IN THE POST COLD WAR WORLD INSTEAD OF FOCUSING ON A COMMUNIST BLOC ENEMY THE POLICY AIMS TO CREATE A SUCCESSOR REGIME THAT WILL CONTROL TECHNOLOGY TRANSFERS BY AND TO ROGUE STATES LAST SUMMER THE ADMINISTRATION PLEDGED TO ENLIST COCOM ALLIES IN A COUNTERPROLIFERATION REGIME TO ISOLATE NATIONS SUCH AS IRAN IRAQ LIBYA AND NORTH KOREA HOWEVER MANY ISSUES WERE NOT ADDRESSED INCLUDING THE EXACT RELATIONSHIP OF THE NEW REGIME TO OTHER EXISTING MULTILATERAL NONPROLIFERATION REGIMES SUCH AS THE AUSTRALIA GROUP WHICH DEALS WITH CHEMICAL AND BIOLOGICAL WEAPONS THE NUCLEAR SUPPLIERS GROUP AND THE MISSILE TECHNOLOGY CONTROL REGIME NONETHELESS U. S. OFFICIALS HAVE ACKNOWLEDGED THAT THEY HAVE ABANDONED TRYING TO ACHIEVE THE SINGLE MEMBER VETO IN THE SUCCESSOR ORGANIZATION IN ITS PLACE THEY FORESEE CLEARLY DEFINED CRITERIA CONCERNING ADHERENCE TO EXPORT CONTROLS AND NONPROLIFERATION NORMS WHICH IS BUREAUCRATIC JARGON FOR A WEAKER REGIME WHILE PURSUING MULTILATERAL AGREEMENTS IN FRAMING A SUCCESSOR REGIME THE CLINTON ADMINISTRATION HAS TELLINGLY RESERVED THE RIGHT OF THE U. S. TO ACT UNILATERALLY WHERE NECESSARY THUS EVEN THOUGH THE ADMINISTRATION HAS LIBERALIZED CERTAIN EXPORT CONTROLS IN THE PAST YEAR IT HAS NOT YET PHASED OUT U. S. UNILATERAL CONTROLS THE PROBLEM IS THAT WITHOUT THE UNANIMITY FEATURE MEMBERS OF THE NEW CONTROL REGIME MAY INDEED BE ABLE TO EXPORT SENSITIVE TECHNOLOGY TO THE FORMER SOVIET STATES AND EVEN TO THE ROGUE STATES IF A MEMBER FOR EXAMPLE UNILATERALLY DECIDES THAT EXPORTING A CERTAIN PRODUCT TO LIBYA IS LEGAL UNDER THE NEW RULES IT WILL BE DIFFICULT FOR OTHER COUNTRIES TO STOP IT IS THERE A BETTER SOLUTION ONE WOULD BE TO COORDINATE CAREFULLY THE ELIMINATION OF THE RULE OF UNANIMITY WITH THE PHASE OUT OF UNILATERAL CONTROLS SO THAT U. S. EXPORTERS ARE NOT DISADVANTAGED IN ADDITION SOME U. S. INDUSTRY GROUPS HAVE ADVOCATED AMALGAMATION OF THE AUSTRALIA GROUP AND THE OTHER NONPROLIFERATION ORGANIZATIONS INTO COCOM'S SUCCESSOR FOR PURPOSES OF SIMPLICITY AND TRANSPARENCY REGRETTABLY THIS DOES NOT APPEAR TO BE OCCURRING IT WOULD BE A SHAME NOT TO UTILIZE FULLY COCOM'S MULTILATERAL SECRETARIAT THAT WAS BUILT UP OVER THE YEARS WITH ITS SINGULAR CREDIBILITY AND COMPETENCE IN THE EVALUATION OF INTELLIGENCE AND DEVELOPMENT OF LISTS OF CONTROLLED TECHNOLOGIES THIS EXPERTISE WOULD APPEAR TO BE IMPORTANT AS EXPORT CONTROL REGIMES EVOLVE TOWARD MORE REFINED CONTROL OF SO CALLED QUOTE CHOKE POINT QUOTE TECHNOLOGIES THAT IS A QUOTE SHORT LIST QUOTE OF TECHNOLOGIES CRITICAL TO AN ADVERSARY'S WAR MAKING ABILITY AND AS RUSSIA AND THE OTHER FORMER SOVIET STATES STRIVE TO DEVELOP THEIR OWN EXPORT CONTROL REGIMES MR. CROCKER IS AN INTERNATIONAL TRADE LAWYER IN WASHINGTON METALLGESELLSCHAFT A. G. PLANS A SERIES OF DIVESTITURES AS IT CHANGES INTO A STREAMLINED HOLDING COMPANY OF THREE OPERATING DIVISIONS FOR ITS TRADING ENGINEERING AND CHEMICALS ACTIVITIES CHAIRMAN KAJO NEUKIRCHEN THE TURNAROUND SPECIALIST WHO IS RESTRUCTURING THE GERMAN COMPANY AFTER ITS NEAR BANKRUPTCY LAST WEEK SAID THAT THE INDUSTRIAL CONCERN WILL PART WITH QUOTE NUMEROUS QUOTE DOMESTIC AND FOREIGN HOLDINGS IN THE MEDIUM TERM MR. NEUKIRCHEN ALSO SAID THE WORK FORCE OF FIFTY EIGHT THOUSAND WILL HAVE TO BE SUBSTANTIALLY REDUCED PLANNED DIVESTITURES INCLUDE METALLGESELLSCHAFT'S SMALL STAKE OF LESS THAN TEN PERCENT IN METHANOL PRODUCER METHANEX CORPORATION OF VANCOUVER BRITISH COLUMBIA AND THE KORF STEEL OPERATIONS IN BRAZIL THE OFFICIAL AGAIN LISTED METALLGESELLSCHAFT'S FORTY NINE PERCENT INTEREST IN KOLBENSCHMIDT A. G. A GERMAN AUTO PARTS SUPPLIER AS ANOTHER HOLDING UP FOR SALE AMONG ITS TRADING ACTIVITIES METALLGESELLSCHAFT INTENDS TO RESTRUCTURE OR SELL LOSS MAKERS AND CAPITAL INTENSIVE UNITS LYING OUTSIDE OF THE COMPANY'S CORE OPERATIONS MR. NEUKIRCHEN WAS MORE SPECIFIC IN LISTING THE COMPANIES THAT METALLGESELLSCHAFT INTENDS TO KEEP NOT FOR SALE HE SAID ARE METALLBANK A. G. THE GROUP'S MERCHANT BANKING UNIT THE COMPANY PREVIOUSLY HAD MENTIONED METALL MINING CORPORATION AN INTERNATIONAL MINING CONCERN BASED IN TORONTO AS A SPINOFF CANDIDATE A METALLGESELLSCHAFT SPOKESMAN SAID THE COMPANY'S MAJORITY HOLDING IN M. M. C. WASN'T INCLUDED ON MR. NEUKIRCHEN'S LATEST LIST BECAUSE OF LEGAL CONSIDERATIONS THAT COULD DELAY ITS SALE IN THE LONGER TERM HOWEVER HE SAID METALLGESELLSCHAFT MAY NOT BE ABLE TO AFFORD THE CAPITAL DEMANDS OF THE BIG MINING GROUP THE SPOKESMAN SAID THE PLANNED DIVESTITURES WERE ONLY A PARTIAL LIST OF WHAT THE COMPANY PLANS TO UNLOAD IN COMING MONTHS HE SAID MORE DETAILS ON PLANNED DIVESTITURES ARE LIKELY TO BE ANNOUNCED AT A NEWS CONFERENCE NEXT MONTH THIS IS TO COME BETWEEN A FEBRUARY ELEVENTH MEETING OF THE COMPANY'S SUPERVISORY BOARD AND A FEBRUARY TWENTY FOURTH SHAREHOLDERS MEETING IN WHICH MANAGEMENT WILL SEEK APPROVAL ON A CAPITAL INCREASE TO RAISE ONE POINT FOUR BILLION MARKS EIGHT HUNDRED ONE POINT EIGHT MILLION DOLLARS FRANKFURT ANALYSTS SAID THE ROUGH OUTLINE OF THE FUTURE METALLGESELLSCHAFT APPEARED TO BE GOING IN THE RIGHT DIRECTION BUT JUDGED THAT MUCH MORE WOULD BE NEEDED TO RESTORE INVESTOR CONFIDENCE IN THE STRIKEN COMPANY AT THE CLOSE OF TRADING ON THE FRANKFURT STOCK EXCHANGE THURSDAY METALLGESELLSCHAFT WAS DOWN TWO POINT EIGHT PERCENT AT TWO HUNDRED THIRTY EIGHT MARKS FROM A DAY EARLIER TWO HUNDRED FORTY FIVE MARKS THE STOCK WAS LATER QUOTED AT TWO HUNDRED THIRTY SEVEN MARKS IN AFTER HOURS COMPUTER TRADING METALLGESELLSCHAFT'S SHARES ARE STILL DOWN NEARLY FIFTY PERCENT AFTER SENIOR MANAGEMENT WAS SACKED IN DECEMBER ON DISCLOSURES OF ONE POINT EIGHT BILLION MARKS IN OPERATING LOSSES AND ANOTHER ONE POINT FIVE BILLION MARKS IN POTENTIAL LOSSES FROM OIL TRADING THE COMPANY WAS PULLED BACK FROM BANKRUPTCY ON SATURDAY AFTER BANKS AGREED TO A THREE POINT FOUR BILLION MARK FINANCIAL RESCUE PLAN THE PACKAGE INCLUDES A ONE POINT THREE BILLION MARK DEBT FOR EQUITY SWAP SEVEN HUNDRED MILLION MARKS IN NEW CREDITS AND THE ONE POINT FOUR BILLION MARK SHARE CAPITAL INCREASE IT'S OBVIOUS THE COMPANY WANTS TO CONCENTRATE ITS OPERATIONS BUT THEY'LL HAVE TO SHOW MORE SAID MICHAEL BROEKER WHO FOLLOWS METALLGESELLSCHAFT FOR BANK JULIUS BAER IN FRANKFURT THE BANKS GAVE THEM NEW MONEY ON THE CONDITION THAT THEY SELL OFF OPERATIONS TO RAISE CASH THE DEVELOPMENT OF URBAN MINIMILLS THAT PROCESS RECYCLED PAPER COULD FILL A KEY MARKETING GAP SEVERAL COMPANIES ARE DISCUSSING THE BUILDING OF SMALL MILLS CLOSE TO URBAN AREAS TO TAKE ADVANTAGE OF GROWING DEMAND FOR RECYCLED PAPER PRODUCTS BY LOCATING CLOSE TO MAJOR RECYCLING CENTERS AND AFTERMARKETS THE SMALLER MILLS COULD TAKE ADVANTAGE OF LOWER TRANSPORTATION COSTS HOFFMAN ENVIRONMENTAL SYSTEMS GREEN BAY WISCONSIN TOUTS A NO DISCHARGE WATER SYSTEM THAT WOULD MAKE URBAN LOCATIONS MORE FEASIBLE PAPER MILLS WHICH ARE GENERALLY LOCATED CLOSER TO VIRGIN TIMBER SUPPLIES USUALLY REQUIRE A LARGE BODY OF WATER FOR PAPER PROCESSING A CONSORTIUM OF THREE COMPANIES INCLUDING HOFFMAN PLANS TO BEGIN BUILDING THE URBAN MILLS THIS YEAR BELOIT CORPORATION WOULD CONSTRUCT THE MINIMILLS AND OGDEN PROJECTS WOULD OPERATE THE FACILITIES THE MILLS WOULD RECYCLE PAPER USED IN MAKING CORRUGATED CARDBOARD BOXES PART OF THE RECYCLING MINIMILL PROGRAM HOWEVER PRESENTS A BIT OF A QUANDARY FOR SOME ENVIRONMENTALISTS IN SOME INSTANCES THE COMPANIES WANT TO LINK THE MILLS TO INCINERATOR PLANTS THEREBY TAKING ADVANTAGE OF CHEAP ENERGY COSTS SEVERAL ENVIRONMENTAL GROUPS SAY INCINERATORS DISCOURAGE RECYCLING EFFORTS AND EMIT HARMFUL FUMES STILL WILLIAM WHITMAN SENIOR VICE PRESIDENT AT OGDEN PROJECTS SEES SEVERAL BENEFITS TO THE MINIMILLS QUOTE BECAUSE THEY'RE ALREADY IN THE URBAN AREA THEY HAVE TREMENDOUS TRANSPORTATION COST ADVANTAGES AND THE ZERO WATER DISCHARGE CONCEPT WILL ALSO EASE ENVIRONMENTAL PROBLEMS QUOTE HE SAYS IT LOOKS ECONOMICALLY FEASIBLE AND IN SOME WAYS IT SEEMS THAT IF WE DON'T DO THIS SOMEBODY ELSE WILL OTHERS ARE GETTING INVOLVED TOO SITHE ENERGIES A NEW YORK BASED INDEPENDENT POWER PRODUCER RECENTLY CONTRACTED TO SELL POWER TO A LINERBOARD RECYCLING PLANT BEING BUILT BY BELOIT NEAR OSWEGO N. Y. IN THIS COUNTRY THE LARGE PAPER COMPANIES REMAIN LARGELY COMMITTED TO VIRGIN PAPER BUT THEIR CONSUMERS AREN'T COMMITTED TO VIRGIN PAPER SAYS ROGER HOFFMAN PRESIDENT OF HOFFMAN ENVIRNONMENTAL WE PLAN TO TAKE ADVANTAGE OF THAT GAP IN THE MARKET WIND POWER IS SURGING IN COLD WEATHER AREAS AS ICY HURDLES ARE CLEARED MOST OF THE WIND POWER ADVANCES IN THE U. S. HAVE CENTERED ON WARMER CLIMATE AREAS ADVOCATES HOWEVER ARE INTERESTED IN THE ENERGY POTENTIAL OF THE CHILLIER UPPER MIDWEST SOMETIMES CALLED THE SAUDI ARABIA OF WIND POWER BUT COLD WEATHER WIND FARMS FACE DIFFERENT OBSTACLES THAN DESERT WIND FARMS FRIGID TEMPERATURES CAN AFFECT MACHINERY AND ICE BUILDUP ON THE BLADES CAN CAUSE STOPPAGES WE'VE LEARNED THAT CERTAIN COMPONENTS SUCH AS MACHINERY LUBRICANTS HAD TO BE MODIFIED FOR THE COLDER WEATHER SAYS EDWARD NEUHAUSER A SPECIALIST CONCENTRATING ON RENEWABLE RESOURCES AT NIAGARA MOHAWK POWER SYRACUSE N. Y. TO COMBAT ICING PROBLEMS TURBINE BLADES ARE PAINTED BLACK TO ABSORB MORE SUNLIGHT SOMETIMES THE TURBINES WILL GO THROUGH RAPID STOP AND START SEQUENCES OR OPERATE AT IRREGULAR RATES TO SHAKE OFF ICE BUILDUP THE PROMISE OF COLD WEATHER WIND POWER HAS PIQUED INTEREST THROUGHOUT THE NORTHERN TIER OF THE COUNTRY IN MINNESOTA A STATE KNOWN FOR ITS BRUTAL WINTERS NORTHERN STATES POWER SAINT PAUL PLANS TO BUILD A WIND FARM IN THE SOUTHWESTERN REGION OF THE STATE NEW ENGLAND ELECTRIC SYSTEM JOINED A CONSORTIUM TO DEVELOP A WIND FARM IN MAINE AND IN VERMONT GREEN MOUNTAIN POWER ALREADY IS OPERATING A SMALL WIND PROJECT QUOTE TWO YEARS AGO WE WOULD HAVE TALKED ABOUT HAWAII AND CALIFORNIA QUOTE SAYS MICHAEL MARVIN OF THE AMERICAN WIND ENERGY GROUP BUT NOW WE HAVE AN ENTIRE STRING OF PROJECTS IN COLD SNOWY AREAS STILL WIND POWER REMAINS A SMALL ELEMENT OF THE NATION'S POWER PORTFOLIO MAKING UP ABOUT ZERO POINT ONE PERCENT OF THE COUNTRY'S INSTALLED CAPACITY WASTE TREATMENT RESEARCHERS ARE EXPLOITING NEW THERMAL TECHNIQUES SEVERAL COMPANIES ARE WORKING ON METHODS TO BREAK DOWN HAZARDOUS WASTE INTO REUSABLE ELEMENTS TO AVOID THE TRADITIONAL BURN LANDFILL OR DO NOTHING APPROACH MOST OF THE NEW THERMAL TECHNOLOGIES DON'T BURN THE WASTE BUT INSTEAD CREATE HIGH HEAT ENVIRONMENTS TO BREAK DOWN CHEMICAL COMPOUNDS TITAN TECHNOLOGIES ALBUQUERQUE N. M. USES CATALYSTS TO BREAK DOWN TIRES INTO OIL CARBON BLACK AND ASH FLAMES NEVER TOUCH THE TIRE SAYS RON WILDER CHIEF OPERATING OFFICER OF TITAN WHICH HAS A PROTOTYPE PLANT IN BRADLEY OKLAHOMA AND IS BUILDING TWO PLANTS IN SOUTH KOREA THE COMPANY'S PROCESS USES THE EMITTED GASES FROM THE TIRES TO FUEL THE HEATING PROCESS THEREBY ELIMINATING EMISSIONS PROBLEMS HE SAYS TITAN'S TECHNOLOGY COULD HELP DEAL WITH THE NATION'S VAST TIRE WASTE PROBLEM WHICH IS PARTIALLY ADDRESSED NOW BY SHREDDING TIRES AND PUTTING THEM IN ROAD PAVING MIXTURES BUT ENVIRONMENTALISTS EXPRESS CONCERN ABOUT THE DISPOSAL OF THE ASH AND THE QUALITY OF THE END PRODUCTS SUCH AS CARBON BLACK WHICH IS OFTEN USED IN SHOE HEELS SEVERAL OTHER COMPANIES PUSH SPECIALIZED WASTE SOLUTIONS INCLUDING MOLTEN METAL TECHNOLOGIES WALTHAM MASSACHUSETTS THE COMPANY USES MOLTEN METAL BATHS TO BREAK DOWN HAZARDOUS WASTES INTO THEIR ELEMENTAL PARTS ZAPIT TECHNOLOGY SANTA CLARA CALIFORNIA USES ELECTRON BEAMS TO BREAK DOWN CONTAMINANT MOLECULES IN SOIL AIR AND GROUND WATER INTO CARBON DIOXIDE WATER AND SALT THE ENVIRONMENTAL DEFENSE FUND OFFERS A CITIZENS SERIES PAMPHLET ON LUST LEAKING UNDERGROUND STORAGE TANKS VITAMIN D. ALCHEMY ROCHESTER INSTITUTE OF TECHNOLOGY PROFESSORS RECEIVE FEDERAL AND STATE GRANTS TO TRY TO TURN MILK CARTONS INTO ETHANOL IF PRIZES FOR WRITERS CAME IN THE SAME CATEGORIES AS THOSE FOR ATHLETES HENRY ROTH WOULD WIN COMEBACK NOVELIST OF THE YEAR HANDS DOWN MAYBE OF THE CENTURY QUOTE MERCY OF A RUDE STREAM VOLUME ONE A STAR SHINES OVER MOUNTAIN MORRIS PARK SAINT MARTIN'S PRESS TWO HUNDRED NINETY PAGES TWENTY THREE DOLLARS IS APPEARING SIXTY YEARS AFTER HIS FIRST NOVEL THE WIDELY ACCLAIMED CALL IT SLEEP EVEN MANY OF HIS GREATEST FANS FIGURED THEY WOULD NEVER HEAR FROM HIM AGAIN LOTS THOUGHT HE WAS DEAD AND OF COURSE MANY ARE DEAD THEMSELVES DURING HIS SIX DECADES OF NEAR TOTAL SILENCE HE WROTE A FEW SHORT STORIES AND ARTICLES MR. ROTH HAD JOBS AS A WOODSMAN SCHOOLTEACHER ATTENDANT IN A STATE MENTAL HOSPITAL AND WATERFOWL FARMER AMONG OTHERS BUT SINCE NINETEEN SEVENTY NINE HE HAS BEEN WRITING AGAIN AND WE ARE TOLD THAT MERCY OF A RUDE STREAM IS ALREADY SIX VOLUMES LONG SO ON THE BASIS OF VOLUME ONE AS THE SPORTS ANNOUNCERS WOULD ASK CAN EIGHTY SEVEN YEAR OLD MR. ROTH STILL CUT IT I THINK SO MERCY OF A RUDE STREAM IS A REWORKING AND FURTHER DEVELOPMENT OF THE JEWISH NEW YORK BOYHOOD THAT MR. ROTH DESCRIBED IN CALL IT SLEEP MR. ROTH SO PASSIONATELY FELT HIS CHILDHOOD SO LOVED IT UNLOVELY AS IT WAS THAT HIS PAGES WRITTEN IN OLD AGE ARE REMARKABLY FRESH AND TOUCHING FOR LONG PASSAGES THEY ARE SCARCELY NOVELISTIC READING MORE LIKE AUTOBIOGRAPHY THE NOVEL FOLLOWS A STRAIGHT TIME LINE NOT MUCH HAPPENS AND NOTHING IS DONE TO INTENSIFY THE EFFECT OF WHAT LITTLE PLOT THERE IS IN THE M. T. V. AGE IT IS SLOW BUT MR. ROTH'S VOICE IS ATTRACTIVE WHILE ALSO SKILLFULLY EVOKING A TIME AND PLACE LONG GONE THE NOVEL IS THE STORY OF A JEWISH BOY IRA STIGMAN GROWING UP IN A LARGELY IRISH HARLEM NEIGHBORHOOD AND KEENLY RESENTING HIS FAMILY'S MOVE FROM THE ALL JEWISH LOWER EAST SIDE BLOCK THAT HE LOVED IT OPENS IN THE SUMMER OF NINETEEN FOURTEEN AT TIMES THE DICTION IS NINETEEN FOURTEEN MR. ROTH USES WORDS SUCH AS ERE FOR BEFORE HIE FOR GO AND VIANDS FOR MEATS AS IN CALL IT SLEEP THE BOY LOVES HIS MOTHER AND HATES HIS MEAN COLD FAILURE OF A FATHER ALTHOUGH IRA IS CONFRONTED SEVERAL TIMES BY MALES WANTING TO INITIATE HIM SEXUALLY HE IS EXTREMELY SHY AND ACCENTUATING THE OEDIPAL SITUATION ONLY FINDS HIMSELF GENUINELY EXCITED ONCE WHILE SHARING HIS MOTHER'S BED DURING ONE OF HIS FATHER'S ABSENCES MR. ROTH INTERRUPTS IRA'S STORY PERIODICALLY WITH THE VOICE OF AN ELDERLY AUTHOR NAMED IRA IN THE NINETEEN EIGHTIES TALKING TO HIS COMPUTER ABOUT THE WORK IN PROGRESS AND ALSO ABOUT CONTEMPORARY AFFAIRS THE MOST COMPELLING OF THESE PASSAGES TOUCH ON THE AUTHOR'S LONG SILENCE HIS TONE IS RUEFUL LAMENTING LOST YEARS HOW MUCH BETTER HE WOULD REMEMBER THIS MATERIAL THE AGED WRITER SAYS IF HE HAD USED IT EARLIER AT ANOTHER POINT QUOTE FOR ALMOST FIVE DECADES YOU WERE WELL NIGH IMMOBILIZED BY YOUR INABILITY TO GO BEYOND CHILDHOOD QUOTE HIS MUSE THE COMPUTER TELLS HIM THAT WAS PART OF THE STORY MR. ROTH HAS SAID ELSEWHERE THAT HIS INABILITY TO WRITE ALSO CAME FROM HIS CONFUSION OVER THE USES OF LITERATURE WHEN CALL IT SLEEP APPEARED IN NINETEEN THIRTY FOUR IT GOT MIXED REVIEWS MR. ROTH WAS A COMMUNIST BUT THE LEFT FOUND HIS NOVEL INSUFFICIENTLY POLITICALLY CORRECT WHY THIS MAUNDERING ABOUT A YOUNG BOY WHEN THERE WERE HEROIC PROLETARIAN NOVELS TO WRITE CRITICS ASKED MR. ROTH TRIED TO MARRY HIS POLITICS AND HIS TALENT ONLY TO FIND THEY WOULDN'T COHABIT HIS EFFORT TO FOLLOW CALL IT SLEEP WITH A PROLETARIAN NOVEL ENDED YEARS LATER IN A BURNT MANUSCRIPT AND CALL IT SLEEP ONLY ACHIEVED ITS WIDESPREAD ACCLAIM WHEN IT WAS REPUBLISHED IN THE SIXTIES AND SOLD MILLIONS OF PAPERBACK COPIES WHAT SAVED THE ELDERLY AUTHOR OF MERCY OF A RUDE STREAM DURING HIS LONG NONWRITING YEARS HE TELLS US AND WHAT MADE IT POSSIBLE FOR HIM TO START AGAIN WAS THE DEVOTION OF HIS WIFE WHOM HE CALLS M. EACH SHORT PASSAGE THAT MENTIONS M. IS SUFFUSED WITH LOVE IF LIFE HIS LIFE WERE WORTH LIVING IT WAS SHE WHO MADE IT SO HE WRITES THE BOOK'S TITLE IS TAKEN FROM SHAKESPEARE'S QUOTE HENRY THE EIGHTH QUOTE THE SHAKESPEARIAN PASSAGE DESCRIBES A MAN SWEPT AWAY BY THE STREAM BUT FOR MR. ROTH THE WORD MERCY IS LITERAL AFTER A ROUGH RIDE LIFE SHOWED HIM MERCY CALL IT SLEEP WAS STEEPED IN JOYCE SOME HAVE CALLED IT THE MOST SUCCESSFUL AMERICAN JOYCEAN NOVEL NOW HOWEVER THE ARTIST IS A VERY OLD MAN AND IN HIS OLD AGE HE HAS CAST OFF LITERARY DEVICE IN FAVOR OF THE PLAINEST OF STYLES EVEN AS HE WROTE THIS FIRST VOLUME HE WAS SO LIMITED BY RHEUMATOID ARTHRITIS THAT HIS WIFE HAD TO LIFT HIM TO A SITTING POSITION EACH MORNING MR. ROTH'S WIFE MURIEL DIED IN NINETEEN NINETY SINCE THEN OTHERS HAVE HELPED HIM TO HIS COMPUTER THE APPROACH OF DEATH IS MUCH IN THE WRITER'S MIND SOME TEN YEARS AGO HE ALREADY CALLED HIMSELF AN OLD MAN SCRIVENING TO WARD OFF TIME YET TIME AT THE END OF HIS LIFE HAS BEEN GENEROUS TO MR. ROTH AS THE BOOK ENDS IRA IS ONLY FOURTEEN NO WONDER MR. ROTH HAD MANY MORE VOLUMES TO WRITE AFTER THIS ONE I LOOK FORWARD TO THE OTHER VOLUMES OF MERCY OF A RUDE STREAM WITH HOPE THAT HE FOUND WAYS TO MAKE ART OF LIFE AFTER CHILDHOOD QUOTE EARLIER TODAY I RECEIVED A CALL FROM THE WHITE HOUSE QUOTE THAT'S HOW LODWRICK COOK CHAIRMAN OF ATLANTIC RICHFIELD COMPANY ARCO AND PAL OF PRESIDENT CLINTON BEGAN A JANUARY TWELFTH FAXED LETTER URGING HIS FELLOW C. E. O.S NOT TO OPPOSE THE CLINTON HEALTH CARE PLAN SO FAR HE'S FAILED BUT THE OPERA ISN'T OVER UNTIL THE FIRST LADY SINGS LET'S PEEK BEHIND THE CURTAIN AT WHAT HAS BECOME A FRANTIC WHITE HOUSE LOBBYING CAMPAIGN TO PREVENT FURTHER POLITICAL DAMAGE TO ITS REDESIGN OF ONE SEVENTH OF THE U. S. ECONOMY COLLARS MUST BE TIGHTENING IN THE WARROOM KEEP IN MIND THAT ONE SECRET TO MR. CLINTON'S POLITICAL SUCCESS HAS BEEN AT LEAST SOME BUSINESS SUPPORT IN NINETEEN NINETY TWO HE REELED IN SILICON VALLEY ENTREPRENEURS UPSET WITH DARMANOMICS DURING LAST YEAR'S TAX BATTLE HE ENLISTED SIXTY EIGHT BIG TIME C. E. O.S TO PROVIDE THE POLITICAL COVER OF A WHITE HOUSE PHOTOOP ARCO'S MR. COOK WAS ONE OF THEM MR. CLINTON HAS A SIMILAR STRATEGY THIS YEAR FOR HEALTH CARE ONLY MORE SO BECAUSE VOTERS REFUSE TO PAY HIGHER TAXES BUSINESS IS SUPPOSED TO BE THE TAX COLLECTOR FOR THE HEALTH CARE STATE THIS IS DONE IN THE CLINTON PLAN THROUGH THE EMPLOYER MANDATE WHICH MEANS THAT BUSINESSES MUST PROVIDE HEALTH INSURANCE TO ALL WORKERS WHILE GOVERNMENT SETS ALL OF THE RULES IT'S A SLY SCHEME OF STEALTH FINANCING BECAUSE IT DISGUISES STATE CONTROL AND RESPONSIBILITY THROUGH A BUSINESS MIDDLEMAN BUT SUCH A SCHEME WON'T SELL IN CONGRESS UNLESS ENOUGH BUSINESSES VOLUNTEER TO PLAY TAX COLLECTOR SMALL BUSINESS HIT THE BARRICADES AGAINST THE PLAN EARLY SO THE WHITE HOUSE HAS BEEN COUNTING ON BIG BUSINESS WHICH IT HOPES IT HAS LURED WITH SPECIAL FAVORS SUCH AS A SIX BILLION DOLLAR A YEAR BRIBE FOR EARLY RETIREE HEALTH BENEFITS WELL MAYBE NOT THE BIGGEST SHOCK FOR THE CLINTONS IS OPPOSITION FROM THE BUSINESS ROUNDTABLE WHICH IS HARDLY A BASTION OF REAGANITE FREE ENTERPRISE THE ROUNDTABLE INCLUDES THE BIGGEST OF THE BIG IN CORPORATE AMERICA ESTABLISHED MANAGERS MORE THAN RISKTAKERS ITS C. E. O.S ARE RESPECTED POOH BAHS WHO DON'T LIKE POLITICAL FISTICUFFS YET WHEN THE ROUNDTABLE'S HEALTH CARE TASK FORCE INSPECTED THE CLINTON PLAN IT VOTED FOURTEEN TO ONE TO REJECT IT CHRYSLER WHICH GETS A BIG BRIBE IN THE CLINTON PLAN WAS THE DISSENTER INSTEAD THE TASK FORCE THREW ITS SUPPORT BEHIND THE MORE FREE MARKET BILL SPONSORED BY TENNESSEE DEMOCRATIC REPRESENTATIVE JIM COOPER THE C. E. O.S DON'T LIKE EVERYTHING ABOUT COOPER EITHER BUT THEY FAVOR IT AS A STARTING POINT THE COOPER BILL AVOIDS UNNECESSARY GOVERNMENTAL REGULATIONS AND NEW OFF BUDGET ENTITLEMENT PROGRAMS SAYS A DRAFT OF THE ROUNDTABLE POSITION LEAKED TO ME THAT'S WHEN THE WHITE HOUSE HIT THE PHONES BOB RUBIN ROGER ALTMAN AND EVEN THE ROSE LAW FIRM'S MOST FAMOUS FORMER S. AND L. LAWYER LOBBIED THE C. E. O.S NOT TO BACK COOPER IN CASE CHARM FAILED ENERGY AND COMMERCE CHAIRMAN JOHN DINGELL WAS ALSO ASKED TO WEIGH IN HE TOLD THEM THAT IF THEY ENDORSED A SPECIFIC PLAN IT WOULD MAKE IT HARD FOR THEM TO FIX THE CLINTON PLAN SOME TIME LATER SAYS MR. DINGELL'S SPOKESMAN SURE AND THE GRAND INQUISITOR WAS ONLY INTERESTED IN SAVING SOULS A FEW C. E. O.S NAIVELY FELL FOR THIS LINE IN HIS LETTER TO OTHER ROUNDTABLE MEMBERS ARCO'S MR. COOK WROTE THAT THE WHITE HOUSE TELLS ME THEY ARE MAKING SOME PROGRESS IN DEVELOPING A FINAL PLAN BUT NEED ADDITIONAL TIME HELLO FINAL PLAN THE WHITE HOUSE LISTENED TO BUSINESS FOR A YEAR WHILE WRITING THE HILLARY PLAN IGNORING THE ADVICE ITS STRATEGY NOW IS TO PREVENT ANY CREDIBLE OPPOSITION FROM FORMING BRAZEN THE CLINTON PLAN THROUGH THE HOUSE ON A PARTISAN VOTE FORCE MODERATE DEMOCRATS TO COMPROMISE ON ITS TERMS THEN BREAK A REPUBLICAN SENATE FILIBUSTER MOST OF HILLARY'S PLAN WOULD THEN BE LAW THE LAST THING THE WHITE HOUSE WANTS IS FOR A MODERATE ALTERNATIVE SUCH AS COOPER TO EMERGE SINCE THAT COULD LET A COALITION OF DEMOCRATS AND REPUBLICANS STOP THE CLINTON PLAN COLD THAT'S WHY MR. DINGELL WANTS TO RAILROAD A BILL THROUGH HIS COMMITTEE BY EARLY APRIL BEFORE AN ALTERNATIVE CAN GEL IT'S ALSO WHY HE AND THE WHITE HOUSE WANT TO DENY MR. COOPER THE ROUNDTABLE'S SUPPORT SO FAR THEIR LOBBYING HAS ONLY HALF WORKED DESPITE THE ARM TWISTING THE ROUNDTABLE POLICY COMMITTEE VOTED FORTY FIVE TO FOURTEEN IN A CONFERENCE CALL LAST WEEK FOR COOPER OVER CLINTON BUT BOWING TO ARCO'S MR. COOK AND OTHERS THE C. E. O.S PUT OFF A FINAL DECISION UNTIL THEY MEET FACE TO FACE ON FEBRUARY SECOND THIS GIVES THE WHITE HOUSE TIME TO SCHMOOZE MORE C. E. O.S TO STAY NEUTRAL OR TO IMPRESS THEM WITH STATE OF THE UNION SALESMANSHIP PERHAPS MR. COOK AND OTHER CLINTON C. E. O.S ARE JUST POLITICALLY NAIVE MERE BABES IN THE BELTWAY BUT IT'S ALSO FAIR TO POINT OUT THAT ARCO WOULDN'T SUFFER THE WAY SMALL COMPANIES WOULD UNDER THE CLINTON PLAN WITH TWENTY SIX THOUSAND EMPLOYEES IT IS BIG ENOUGH TO OPT OUT OF BUREAUCRATIC QUOTE HEALTH ALLIANCES QUOTE IT COULD ALSO PASS ON ITS EARLY RETIREE HEALTH COSTS TO UNCLE SAM AND IT'S ALWAYS NICE TO HAVE A FRIEND IN THE WHITE HOUSE TO HELP WITH THOSE NASTY CLEAN AIR RULES IF THESE C. E. O.S ARE MOTIVATED BY MORE THAN SELF INTEREST THEY MIGHT RECALL THE FATE OF POOR ROY VAGELOS THE MERCK C. E. O. WAS SCHMOOZED HIMSELF IN NINETEEN NINETY TWO HE EVEN LENT THE MERCK CAMPUS FOR A CLINTON SPEECH YET WITHIN WEEKS MERCK WAS BEING DENOUNCED AS JUST ANOTHER DRUG PROFITEER POLITICIANS ON A MISSION DON'T LISTEN TO REASON THEY ONLY HEED THE RAW POWER OF A UNITED OPPOSITION Q. V. C. NETWORK INCORPORATED CHAIRMAN BARRY DILLER IS ASKING WALL STREET STOCK TRADERS HOW HE CAN IMPROVE HIS BID FOR PARAMOUNT COMMUNICATIONS INCORPORATED AMID INDICATIONS THAT PARAMOUNT'S BOARD MAY ENDORSE A RIVAL BID BY VIACOM INCORPORATED AT A MEETING TODAY PEOPLE CLOSE TO Q. V. C. SAY MR. DILLER IS CONSIDERING AT LEAST TWO WAYS OF RESTRUCTURING Q. V. C.'S OFFER FOR PARAMOUNT CURRENTLY VALUED AT ROUGHLY TEN POINT TWO BILLION DOLLARS OR EIGHTY FOUR DOLLARS AND SEVENTY TWO CENTS A SHARE WITHOUT NECESSARILY BOOSTING THE TOTAL PRICE THOSE PEOPLE SAID MR. DILLER MAY REDUCE OR ELIMINATE PREFERRED STOCK IN Q. V. C.'S OFFER WHILE BOOSTING THE AMOUNT OF CASH IN THE OFFER BY A COMPARABLE AMOUNT IN ADDITION THEY SAID HE IS EXPLORING WAYS TO OFFER SOME PROTECTION AGAINST A DROP IN THE PRICE OF Q. V. C.'S STOCK WHICH MAKES UP MORE THAN ONE THIRD OF THE VALUE OF THE HOMESHOPPING COMPANY'S BID VIACOM WHICH REVISED ITS OWN BID ON TUESDAY HAS GAINED THE BACKING OF MANY STOCK TRADERS FOR ITS OFFER DESPITE A LOWER CURRENT MARKET VALUE OF ABOUT NINE POINT EIGHT BILLION DOLLARS OR EIGHTY ONE DOLLARS AND NINETY SEVEN CENTS A SHARE BY OFFERING A SECURITY THAT INCREASES IN VALUE AS VIACOM'S STOCK PRICE DECLINES AT ITS MEETING TODAY THE PARAMOUNT BOARD IS LIKELY TO BE TOLD THAT TAKEOVER STOCK TRADERS KNOWN AS ARBITRAGERS AS WELL AS ACTIVE TRADERS KNOWN AS HEDGE FUNDS GENERALLY PREFER THE VIACOM OFFER LONGER TERM INSTITUTIONAL INVESTORS ARE GENERALLY NEUTRAL BUT AS THE BIDDING WAR FOR THE PUBLISHING AND ENTERTAINMENT GIANT HAS ESCALATED MANY OF THEM HAVE SOLD THEIR STOCK LEAVING THE OUTCOME LARGELY IN THE HANDS OF ARBITRAGERS AND HEDGE FUNDS AS A RESULT THE PARAMOUNT BOARD MAY ENDORSE THE VIACOM BID IN SOME EQUIVOCAL WAY OR MAY STICK WITH ITS EXISTING ENDORSEMENT OF Q. V. C.'S OFFER FOR THE TIME BEING BECAUSE THE BIDDING PROCESS STILL HAS ABOUT TEN DAYS TO GO TRADERS SPECULATE THE BIDDING RULES SET BY PARAMOUNT GIVE BOTH BIDDERS UNTIL FEBRUARY FIRST TO SUBMIT THEIR BEST BIDS BUT IT'S UNCLEAR WHETHER EITHER SIDE WILL ABIDE BY THAT DEADLINE MR. DILLER MET WITH TWO LARGE PARAMOUNT HOLDERS LATE WEDNESDAY TO SOLICIT THEIR IDEAS AT THE OFFICES OF ALLEN AND COMPANY Q. V. C.'S INVESTMENT BANKER THE HOLDERS WERE OMEGA ADVISERS INCORPORATED A LARGE HEDGE FUND COMPANY RUN BY LEON COOPERMAN THE FORMER CHIEF INVESTMENT STRATEGIST AT GOLDMAN SACHS AND COMPANY AND BAKER NYE L. P. AN ARBITRAGE FUND COMPANY THE TWO FUNDS HOLD AN ESTIMATED SIX MILLION PARAMOUNT SHARES OMEGA HAS PUBLICLY ANNOUNCED ITS PREFERENCE FOR THE VIACOM OFFER THE PREFERRED STOCK BEING OFFERED BY Q. V. C. TO HOLDERS OF FORTY NINE POINT NINE PERCENT OF PARAMOUNT STOCK HAS A FACE VALUE OF ROUGHLY NINE HUNDRED FIFTY EIGHT MILLION DOLLARS IF THAT WERE SHIFTED TO THE CASH SIDE OF Q. V. C.'S BID Q. V. C. COULD BOOST THE BID'S CASH COMPONENT CURRENTLY NINETY TWO DOLLARS A SHARE FOR FIFTY POINT ONE PERCENT OF PARAMOUNT SHARES BY ALMOST SIXTEEN DOLLARS A SHARE THAT COULD BE JUST ENOUGH TO TOP THE CASH IN THE VIACOM OFFER CURRENTLY ONE HUNDRED SEVEN DOLLARS A SHARE FOR FIFTY POINT ONE PERCENT OF PARAMOUNT SHARES MARIO GABELLI WHOSE GABELLI FUNDS OWN ABOUT FOUR MILLION SHARES OF PARAMOUNT SAID THAT WITH SUCH A SMALL GAP BETWEEN THE BIDS NOW JUST A DECLINE IN THE STOCK MARKET COULD HURT Q. V. C.'S PROSPECTS IN THE CONTEST MR. DILLER QUOTE HAS TO COME TO GRIPS WITH THE FACT THAT IF THE MARKET IS DOWN THE DAY BEFORE THE TENDER CLOSES THE ARBITRAGE COMMUNITY IS GOING TO HAVE A BIAS TOWARD VIACOM QUOTE MR. GABELLI SAID BARRY IS GOING TO HAVE TO BRING UP EITHER THE FRONT END OR THE BACK END OF THE Q. V. C. OFFER MR. DILLER HAS INDICATED TO SOME TRADERS THAT HE IS AVERSE TO OFFERING THE SAME KIND OF STOCK PRICE PROTECTION AS VIACOM THE CABLE T. V. CONCERN BECAUSE IT CREATES A POSSIBLE FUTURE LIABILITY THAT COULD WEAKEN HIS COMPANY FINANCIALLY ONE WAY Q. V. C. COULD PROVIDE PRICE PROTECTION FOR ITS STOCK WOULD BE TO HAVE BELLSOUTH CORPORATION THE REGIONAL TELEPHONE COMPANY THAT IS ALREADY INVESTING IN Q. V. C. ANNOUNCE PLANS TO BUY ADDITIONAL Q. V. C. STOCK AFTER THE PARAMOUNT ACQUISITION CANADA'S MOORE CORPORATION SAID IT PLANS TO TAKE A PRETAX CHARGE OF TWO HUNDRED TEN MILLION DOLLARS TO COVER THE COSTS OF CLOSING ADDITIONAL MANUFACTURING PLANTS AND STREAMLINING ITS ORDER MANAGEMENT SYSTEM MOORE A MAJOR PROVIDER WORLD WIDE OF BUSINESS FORMS SAID IT EXPECTS QUOTE SUBSTANTIAL QUOTE BENEFIT FROM THE PROPOSED CHANGES ASSUMING THE U. S. ECONOMY CONTINUES TO RECOVER THE TORONTO BASED COMPANY SAID THE BENEFITS WILL COME IN THE FORM OF LOWER EXPENSES AND IMPROVED GROSS MARGINS THE PLANNED WRITE DOWN WHICH EQUALS ONE HUNDRED FIFTY FIVE MILLION DOLLARS AFTER TAX OR ONE DOLLAR AND FIFTY FIVE CENTS A SHARE WILL RESULT IN A LOSS FOR NINETEEN NINETY THREE MOORE SAID HOWEVER A STRONG BALANCE SHEET AND ADEQUATE CASH RESOURCES ARE SUFFICIENT TO CONTINUE TO FUND NINETEEN NINETY FOUR CAPITAL SPENDING AND TO MAINTAIN THE DIVIDEND IT SAID MOORE ITS PLAN WILL RESULT IN A REDUCTION OF ABOUT THREE THOUSAND JOBS OR THIRTEEN PERCENT OF ITS WORLDWIDE WORK FORCE THE PLANNED CHARGES RELATE TO BUSINESSES IN ALL GEOGRAPHIC REGIONS IN WHICH MOORE OPERATES THE COMPANY SAID REVENUE HAS DECLINED IN RECENT YEARS AS MOORE'S CORE BUSINESS FORMS OPERATIONS FACED PRESSURE FROM THE GROWING USE OF ELECTRONIC COMMUNICATIONS TO REPLACE DECLINING REVENUE FROM ITS BUSINESS FORMS DIVISION MOORE HAS TURNED TO OTHER FASTER GROWING ACTIVITIES FOR INSTANCE IT NOW PROVIDES DIRECT MARKETING SERVICES DATA MANAGEMENT AND DOCUMENT STORAGE AND RETRIEVAL MOORE HAS PREVIOUSLY TAKEN WRITE DOWNS IN RELATION TO ITS UNDERPERFORMING EUROPEAN BUSINESS THE COMPANY SAID ITS RESULTS IN EUROPE ALTHOUGH IMPROVING ARE STILL UNACCEPTABLE NOVA CORPORATION OF ALBERTA ANNOUNCED A FIVE HUNDRED ONE POINT FOUR MILLION CANADIAN DOLLAR THREE HUNDRED EIGHTY TWO POINT EIGHT MILLION U. S. DOLLARS EQUITY ISSUE TO HELP FINANCE PIPELINE EXPANSION AND TO ESTABLISH A NEW LINE OF BUSINESS THE CALGARY PIPELINE AND CHEMICALS COMPANY SAID IT EXPECTS TO SPEND SIX HUNDRED MILLION CANADIAN DOLLARS THIS YEAR AND TWO BILLION CANADIAN DOLLARS ONE POINT FIVE THREE BILLION U. S. DOLLARS BY THE END OF NINETEEN NINETY SIX EXPANDING ITS ALBERTA NATURAL GAS PIPELINE SYSTEM NOVA SAID THE EQUITY INFUSION ALSO WILL ALLOW IT TO TAKE ADVANTAGE OF OPPORTUNITIES IN THE EMERGING NATURAL GAS MARKETING BUSINESS THE COMPANY SPENT ONE POINT FIVE BILLION CANADIAN DOLLARS IN THE PAST THREE YEARS EXPANDING THE PIPELINE NETWORK AND ANNOUNCED RECORD NATURAL GAS DELIVERIES FOR THE SEVENTH CONSECUTIVE YEAR ITS PIPELINE DIVISION SAID IT DELIVERED THREE POINT EIGHT TRILLION CUBIC FEET OF GAS TO ALBERTA GAS USERS AND CONNECTING PIPELINES IN NINETEEN NINETY THREE UP TEN POINT NINE PERCENT FROM THE PREVIOUS YEAR NOVA HAS AGREED TO ACQUIRE THIRTY FIVE PERCENT OF CLOSELY HELD NATURAL GAS CLEARINGHOUSE HOUSTON AND TO ESTABLISH A GAS MARKETING JOINT VENTURE WITH CLEARINGHOUSE IN CANADA NOVA SAID IT AGREED TO SELL FIFTY TWO POINT FIVE MILLION COMMON SHARES AT NINE CANADIAN DOLLARS AND FIFTY FIVE CENTS A SHARE TO CANADIAN PUBLIC INVESTORS THROUGH A SYNDICATE OF CANADIAN UNDERWRITERS LED BY R. B. C. DOMINION SECURITIES INCORPORATED SCOTIA MCLEOD INCORPORATED AND BURNS FRY LIMITED NOVA HAD ROUGHLY FOUR HUNDRED SEVEN MILLION COMMON SHARES OUTSTANDING BEFORE THE NEW SHARE ISSUE A SPOKESMAN SAID HE EXPECTS THE SHARE ISSUE TO HAVE A NEUTRAL EFFECT ON THE COMPANY'S NINETEEN NINETY FOUR NET INCOME AND TO LOWER ITS NINETEEN NINETY FOUR PER SHARE EARNINGS DUE TO DILUTION DONALD PATTISON AN ANALYST WITH NEW YORK BROKERAGE HOUSE C. J. LAWRENCE SAID HE STILL EXPECTS NOVA TO REPORT NINETEEN NINETY THREE EARNINGS ABOVE THE PREVIOUS YEAR'S THIRTY THREE CENTS A SHARE BUT WELL BELOW HIS EARLIER FORECAST OF FORTY NINE CENTS A SHARE THREE CHEERS FOR PAUL GIGOT AND HIS DECEMBER TWENTY SEVENTH EDITORIAL PAGE ARTICLE QUOTE SYRIA DIARY ASSAD HAS A DEAL WE CAN REFUSE QUOTE HE ARTICULATES THE MANY GRAVE DIFFICULTIES FACED BY ISRAEL IN NEGOTIATING PEACE WITH SYRIA ASSAD'S BRUTAL DICTATORSHIP IS A GIANT DESTABILIZING INFLUENCE IN THE MIDDLE EAST ISRAEL AS AMERICA'S BEST FRIEND IN THE U. N. AND AS THE ONLY LEGITIMATE DEMOCRACY IN THE REGION DESERVES OUR STAUNCH SUPPORT AND ENCOURAGEMENT THROUGHOUT THE PEACE PROCESS OUR ADMINISTRATION'S OVERTURES TO THE SYRIANS PROVOKE GRAVE ANXIETIES ON THE PART OF AMERICANS WHO ARE WELL INFORMED ABOUT THE REALITIES OF THE MIDDLE EAST MAGAZINES CAROLINE MILLER EDITOR IN CHIEF OF LEAR'S MAGAZINE WAS NAMED EDITOR OF SEVENTEEN MAGAZINE BY K. THE THIRD COMMUNICATIONS CORPORATION MS. MILLER FORTY SIX SUCCEEDS MIDGE RICHARDSON SIXTY THREE WHO LEFT THE POST IN OCTOBER TO BECOME EDITOR AT LARGE AT KOHLBERG KRAVIS ROBERTS AND COMPANY'S K. THE THIRD MEANWHILE YM EDITOR IN CHIEF BONNIE HUROWITZ FULLER THIRTY SEVEN SAID SHE IS LEAVING BERTELSMANN A. G.'S YM SHE WILL BECOME EDITOR IN CHIEF OF MARIE CLAIRE AN AMERICAN VERSION OF A FRENCH FASHION MAGAZINE TO BE TESTED IN THE FALL BY HEARST CORPORATION SO THE GANG THAT GAVE US DEFENSE SECRETARY INMAN NOW OFFERS US AS SPECIAL COUNSEL TO INVESTIGATE POSSIBLE IMPROPRIETY BY THE PRESIDENT CLARK CLIFFORD'S LAWYER DO NOT MISUNDERSTAND THOUGH WE SUPPOSE THAT ASKS TOO MUCH THIS IS NOT INTENDED AS A PERSONAL ATTACK ON ROBERT FISKE JUNIOR LAWYERS ARE ENTITLED TO HAVE CLIENTS AND IN THE LEGAL MANEUVERING MR. CLIFFORD SWITCHED TO ANOTHER LAWYER UNQUESTIONABLY MR. FISKE CARRIES A REPUTATION AS AN UPSTANDING MEMBER OF THE NEW YORK BAR ON THE BASIS OF WHAT WE KNOW ABOUT HIM FOR MOST POSTS HE WOULD BE AN OUTSTANDING CHOICE INDEED WE OURSELVES STRONGLY SUPPORTED HIS NOMINATION AS DEPUTY ATTORNEY GENERAL WHEN HE WAS ATTACKED BY FOURTEEN U. S. SENATORS THE SENATE'S CONSERVATIVE FACTION SENT A LETTER TO PRESIDENT BUSH OPPOSING MR. FISKE ON THE GROUNDS THAT HE HAD BEEN CHAIRMAN OF THE AMERICAN BAR ASSOCIATION JUDICIAL SELECTION COMMITTEE WHILE WE AGREED WITH THEIR CRITICISM OF THE INCREASINGLY POLITICIZED COMMITTEE WE OBSERVED THAT WITHIN THE COMMITTEE MR. FISKE HAD BEEN A FORCE FOR THE GOOD AND ON THE BASIS OF HIS OWN TENURE AS U. S. ATTORNEY IN MANHATTAN THAT HE WOULD BE A SALUTARY RESTRAINING HAND ON FEDERAL PROSECUTORS ON ISSUES SUCH AS THE APPLICATION OF RICO THE RACKETEERING STATUTE BEING APPLIED TO FINANCIAL INSTITUTIONS QUOTE WHY JUSTICE NEEDS FISKE QUOTE JUNE TWENTY SECOND NINETEEN EIGHTY NINE WE FAILED TO PERSUADE THE SENATORS AND MR. FISKE EVENTUALLY WITHDREW MR. FISKE'S NEW APPOINTMENT HOWEVER IS FAR FROM AN ORDINARY POST AS WE ELABORATED EARLIER IN THE WEEK FOUNTAIN OF TRUST JANUARY NINETEENTH THE WHOLE IDEA IS TO FIND SOMEONE WHOSE WORD MOST AMERICANS WOULD BE INCLINED TO TAKE ON TRUST WHICH SURELY MEANS SOMEONE NOT IN THE LEAST CONNECTED TO THE SCANDALS CIRCLING THE GLOBE THERE ARE EVEN CERTAIN SPECULATIVE BUT STILL POSSIBLE CONNECTIONS BETWEEN WHITEWATER AND THE B. C. C. I. SCANDAL LITTLE ROCK'S STEPHENS FINANCIAL EMPIRE HELPED BANKROLL BILL CLINTON'S PRESIDENTIAL CAMPAIGN AND ALSO HELD A LIEN ON JAMES MCDOUGAL'S INTEREST IN MADISON GUARANTY SAVINGS AND LOAN ANOTHER PART OF THE SAME EMPIRE HANDLED THE BROKERAGE WHEN B. C. C. I. SURROGATES BOUGHT WASHINGTON'S FIRST AMERICAN BANK AND INSTALLED MR. CLIFFORD AS ITS HEAD NOW OF COURSE MR. CLIFFORD ESCAPED TRIAL IN NEW YORK ON HEALTH GROUNDS PERHAPS A TESTIMONY TO MR. FISKE'S EFFORTS ON HIS BEHALF AND HIS ACOLYTE ROBERT ALTMAN WAS ACQUITTED OF MISLEADING REGULATORS LEAVING THE INTRIGUING QUESTION OF HOW IT WAS B. C. C. I. CAME TO OWN THE BIGGEST BANK IN WASHINGTON BUT INVESTIGATORS NOW HAVE ACCESS TO A PASSEL OF B. C. C. I. DOCUMENTS NOT AVAILABLE DURING THIS TRIAL IN ANY EVENT KNOWINGLY OR NOT MR. CLIFFORD AND MR. ALTMAN INDISPUTABLY WORKED FOR B. C. C. I. GIVEN THE EXTREME SENSITIVITY OF THE SPECIAL COUNSEL POST SURELY IT WOULD HAVE BEEN POSSIBLE TO FIND SOMEONE OTHER THAN A PROMINENT MEMBER OF MR. CLIFFORD'S DEFENSE TEAM YES MR. FISKE IS WIDELY SEEN AS UPSTANDING HIS LIST OF CHARACTER WITNESSES WOULD BE ALMOST AS LONG AS HIS CLIENT'S BUT SUCH A LIST IS COOL COMFORT TO THE GROWING NUMBER OF AMERICANS WHO THINK THAT SOMETHING IS WRONG IN HIGH PLACES WHY FOR THAT MATTER SELECT SOMEONE WHO'D ATTRACTED THE WRITTEN OPPOSITION OF FOURTEEN SENATORS IF THE OBJECT IS TO BUILD TRUST IN THE INVESTIGATION WHY THEN PICK SOMEONE WITH PREPACKAGED ENEMIES IN ALL A VERY CURIOUS SELECTION WHY DID JANET RENO MAKE THIS CHOICE IF SHE DID WHY DID DAVIS POLK AND WARDWELL CONSENT TO HAVE AN ACTIVE PARTNER IN THIS ROLE AND WHAT DOES ITS CLIENT LIST LOOK LIKE LAWRENCE WALSH HAD RETIRED FROM DAVIS POLK BEFORE MOUNTING HIS CRUSADE AND SINCE MR. FISKE MUST KNOW WHAT BAGGAGE HE RIGHTLY OR WRONGLY CARRIES WHY WOULD SOMEONE OF HIS INTEGRITY ACCEPT THE APPOINTMENT THE ULTIMATE POINT OF THESE QUESTIONS WE SUPPOSE IS THAT THE VERY NOTION OF SPECIAL PROSECUTORS ASKS TOO MUCH MR. FISKE PROMISES THAT AT THE END OF HIS INVESTIGATION HE WILL ISSUE A PUBLIC REPORT WHY IS THAT WHAT HE DID AS A U. S. ATTORNEY NO EITHER HE INDICTED AND PUT THE DECISION BEFORE A JUDGE AND JURY OR HE SHUT UP THAT IS THE WAY THE CRIMINAL PROCESS IS SUPPOSED TO WORK WE CLEARLY DO NEED A PUBLIC REPORT BUT THAT IS THE PURVIEW OF AN INVESTIGATION BY THE LEGISLATIVE BRANCH WHICH OPERATES BY GIVE AND TAKE IN THE LIGHT OF DAY WE WISH MR. FISKE THE BEST OF LUCK WITH HIS INVESTIGATION BUT HIS CURRICULUM VITAE MAKES A CONGRESSIONAL PROBE OF WHITEWATER ALL THE MORE NECESSARY HAS THIS REPUBLIC REALLY REACHED THE POINT THAT A DEMOCRATIC CONGRESS CANNOT BE EXPECTED TO OPENLY INVESTIGATE SUSPICIONS INVOLVING A DEMOCRATIC PRESIDENT HAVE WE REACHED THE POINT WHERE IT IS UNREASONABLE EVEN TO ASK FOR ONE GUESS NOT NECESSARILY BUT IF WE HAVE WHAT WE NEED IS A NEW CONGRESS GENERAL MOTORS CORPORATION'S SATURN UNIT WILL ADD TWO THOUSAND EIGHT HUNDRED DOLLARS AT END OF THIS MONTH TO EACH WORKER'S NINETEEN NINETY THREE BONUS BRINGING THE TOTAL BONUS FOR LAST YEAR TO FIVE THOUSAND ONE HUNDRED DOLLARS SATURN MADE A PROFIT LAST YEAR BEFORE INTEREST TAXES AND HEALTH CARE COSTS FOR THE FIRST TIME SINCE IT BEGAN PRODUCING CARS IN NINETEEN NINETY THAT HELPED TRIGGER THE LARGE BONUSES THE EIGHT THOUSAND FIVE HUNDRED SATURN WORKERS WERE ALSO REWARDED BECAUSE SATURN MET QUALITY AND PRODUCTION GOALS A SATURN SPOKESMAN SAID TELE COMMUNICATIONS INCORPORATED SAID ITS PLANNED PURCHASE OF A MILLION NEW TELEVISION SET TOP CONVERTERS WILL BE DELAYED BY NEARLY A YEAR BECAUSE INDUSTRY TECHNICAL STANDARDS GOVERNING THEIR OPERATION HAVEN'T BEEN FINALIZED SKEPTICS SAID THE DELAY AFFIRMS THEIR BELIEF THAT THE MUCH BALLYHOOED INFORMATION SUPERHIGHWAY WILL TAKE FAR LONGER COST FAR MORE AND ATTRACT FAR FEWER VIEWERS THAN IS GENERALLY BELIEVED THE NEW GENERATION CONVERTER BOXES ARE A CRITICAL PART OF THE CABLE T. V. INDUSTRY'S PROMISE TO DELIVER MOVIES ON DEMAND COMPUTER SERVICES AND AN ARRAY OF INTERACTIVE GAMES AND SERVICES THE DELAY IN THE BOXES' DEPLOYMENT BY T. C. I. THE NATION'S LARGEST AND MOST POWERFUL CABLE OPERATOR SIGNALS A BROADER DELAY FOR THE REST OF THE CABLE INDUSTRY THE HOLDUP INVOLVES A CORE TECHNOLOGY KNOWN AS DIGITAL COMPRESSION WHICH CAN EFFECTIVELY YIELD A TENFOLD INCREASE IN THE NUMBER OF CABLE CHANNELS THAT AN OPERATOR CAN SEND TO A SUBSCRIBER'S HOME T. C. I. HAD ANNOUNCED ITS ORDER OF THE DIGITAL COMPRESSION BOXES AMID MUCH FANFARE IN DECEMBER NINETEEN NINETY TWO IT HAD PLANNED TO ROLL THEM OUT IN THE FIRST QUARTER OF THIS YEAR NOW THE COMPANY MUST WAIT UNTIL THE END OF THE YEAR TO BEGIN DEPLOYING THE FIRST OF THE BOXES WHICH WILL BE MANUFACTURED BY GENERAL INSTRUMENT CORPORATION'S JERROLD INSTRUMENT SUBSIDIARY AND BY SCIENTIFIC ATLANTA INCORPORATED LARGER VOLUMES AS MANY AS ONE HUNDRED THOUSAND BOXES WON'T GO OUT UNTIL THE BEGINNING OF NINETEEN NINETY FIVE T. C. I. AND ITS MANUFACTURERS ARE WAITING FOR STANDARDS TO BE FINALIZED BY MPEG OR THE MOVING PICTURE EXPERTS GROUP AN INTERNATIONAL BODY SET UP TO DESIGN STANDARDS FOR THE WAY ELECTRONIC PRODUCTS WORK WHEN THEY RECEIVE DIGITALLY COMPRESSED SIGNALS QUOTE IT'S A COMPLEX PROCESS OF NEGOTIATIONS INVOLVING HUNDREDS OF COMPANIES AND INDUSTRIES FROM DOZENS OF COUNTRIES AROUND THE WORLD QUOTE SAID ROBERT THOMSON A SENIOR VICE PRESIDENT AT T. C. I. WE'RE SITTING ON THE SIDELINES WAITING FOR THIS DELAY TO END THE DELAY IN SETTING STANDARDS COULD TRIGGER A RIPPLE EFFECT ACROSS SEVERAL INDUSTRIES UNTIL A DIGITAL COMPRESSION PROTOCOL IS SET T. C. I. CAN'T BUY LARGE VOLUMES OF DIGITAL EQUIPMENT AND UNTIL LARGE VOLUMES OF EQUIPMENT ARE MANUFACTURED PRICES WILL REMAIN HIGH WHICH WILL SLOW THE SPREAD OF THE DIGITAL REVOLUTION THE MPEG GROUP HAS BEEN TRYING TO FINISH WRITING A STANDARD KNOWN IN INDUSTRY PARLANCE AS MPEG THE SECOND BUT THE PROCESS FOR BUILDING A CONSENSUS IS FRAUGHT WITH COMPLICATIONS EACH COMPANY OR COUNTRY HAS ITS OWN POLITICAL AND FINANCIAL MOTIVATIONS FOR LOBBYING THE GROUP FOR VARIOUS CHANGES A DIRECT BROADCAST SATELLITE COMPANY FOR EXAMPLE HAS A DIFFERENT AGENDA THAN A CABLE COMPANY FURTHERMORE THE STANDARDS COVER SEVERAL ASPECTS OF THE TECHNOLOGY SUCH AS SOUND AND VIDEO THE BOTTOM LINE IS THAT OUR CUSTOMERS INCLUDING T. C. I. COMCAST CORPORATION AND COX CABLE A UNIT OF COX ENTERPRISES INCORPORATED HAVE ALL CONCLUDED THEY WOULD LIKE THE MPEG THE SECOND OPTION IN THEIR DIGITAL CONVERTERS BEFORE WE FINISH THEM SAID DAN MOLONEY DIRECTOR OF SUBSCRIBER PRODUCTS FOR GENERAL INSTRUMENT DOW JONES AND COMPANY AND HUBBARD BROADCASTING INCORPORATED SAID DOW JONES HAS ACQUIRED A MINORITY INTEREST IN AND WILL PROVIDE PROGRAMMING TO HUBBARD'S NEW U. S. SATELLITE BROADCASTING VENTURE A NATIONAL DIRECT BROADCAST SATELLITE SERVICE U. S. SATELLITE BROADCASTING INCORPORATED SAINT PAUL MINNESOTA PLANS TO DELIVER MORE THAN ONE HUNDRED FIFTY CHANNELS OF ENTERTAINMENT AND INFORMATION TO VIEWERS WHO WILL RECEIVE THE SIGNALS ON EIGHTEEN INCH DISH ANTENNAS LINKED TO SPECIAL HOME RECEIVERS PETER SKINNER SENIOR VICE PRESIDENT OF DOW JONES WHICH PUBLISHES THE WALL STREET JOURNAL SAID DOW JONES WILL BE THE EXCLUSIVE PROVIDER OF BUSINESS AND FINANCIAL NEWS TO THE NEW SERVICE HE DECLINED TO SPECIFY THE SIZE OF THE INVESTMENT BUT SAID IT WAS QUOTE MULTIMILLION DOLLAR QUOTE IN SIZE HE SAID THE DOW JONES PROGRAMMING WILL RANGE FROM DAILY NEWS REPORTS ON THE U. S. SATELLITE NEWS CHANNEL TO INFORMATIONAL AND INSTRUCTIONAL BROADCASTS INCLUDING PAY PER VIEW PROGRAMMING THE PROGRAMS WILL PARALLEL WHAT YOU SEE IN THE WALL STREET JOURNAL SUCH AS YOUR MONEY MATTERS OR THE INVESTMENT ROUND TABLES IN BARRON'S MAGAZINE HE SAID U. S. SATELLITE BROADCASTING PLANS TO BEGIN OPERATING A DIGITAL DIRECT BROADCAST SATELLITE SERVICE IN APRIL PROVIDING A WIDE VARIETY OF ENTERTAINMENT AND INFORMATION TELEVISION PROGRAMMING U. S. SATELLITE ALREADY HAS REACHED DISTRIBUTION AGREEMENTS WITH VIACOM INCORPORATED CHANNELS NICKELODEON M. T. V. AND V. H. ONE AS WELL AS VIACOM PAY CHANNELS SHOWTIME MOVIE CHANNEL AND FLIX AND TIME WARNER INCORPORATED'S HOME BOX OFFICE AND CINEMAX THE BROADCASTS WILL BE DELIVERED FROM THE FIRST OF TWO SATELLITES RECENTLY LAUNCHED BY U. S. SATELLITE AND ITS PARTNER HUGHES COMMUNICATIONS INCORPORATED A SUBSIDIARY OF GENERAL MOTORS CORPORATION THE SECOND SATELLITE WILL BE LAUNCHED LATE THIS YEAR U. S. SATELLITE'S PROGRAMMING WILL BE BROADCAST SEPARATELY FROM PROGRAMMING PLANNED BY HUGHES THE VENTURE IS EXPECTED TO BE THE FIRST REAL THREAT TO CABLE T. V. COMPANIES BY PROVIDING CUSTOMERS AN ALTERNATIVE METHOD OF RECEIVING T. V. PROGRAMMING HOWEVER USERS WILL HAVE TO MAKE AN UPFRONT INVESTMENT IN HARDWARE THE SATELLITE DISH INITIALLY HAS BEEN ESTIMATED TO COST SEVEN HUNDRED DOLLARS AS WELL AS PAY MONTHLY SERVICE COSTS THOMSON CONSUMER ELECTRONICS INCORPORATED WILL BEGIN DISTRIBUTING THE HOME RECEIVING EQUIPMENT UNDER THE R. C. A. BRAND THROUGH RETAIL OUTLETS BEGINNING IN APRIL HUBBARD BROADCASTING OWNS NINE T. V. STATIONS TWO RADIO STATIONS TWO T. V. PRODUCTION COMPANIES AND A SATELLITE NEWSGATHERING SERVICE DOW JONES ALSO PUBLISHES BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES TELERATE AND THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS DOW JONES SHARES CLOSED YESTERDAY AT THIRTY EIGHT DOLLARS OFF FIFTY CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE NEWS WAS ANNOUNCED AFTER THE CLOSE OF TRADING DESPITE WORRIES ABOUT POLITICAL VIOLENCE MEXICO'S BANCO NACIONAL DE COMERCIO EXTERIOR OR BANCOMEXT MANAGED TO FIND BUYERS FOR ONE BILLION DOLLARS OF GLOBAL NOTES THE ISSUE ONLY THE SECOND GLOBAL NOTE OFFERING FROM A LATIN AMERICAN ISSUER WAS LAUNCHED YESTERDAY AND IS SLATED TO BE FINALIZED THIS MORNING BUT DUE TO WORRIES ABOUT POLITICAL VIOLENCE IN MEXICO DEMAND FOR THE MEXICAN BANK DIDN'T SEEM TO BE NEARLY AS STRONG AS FOR THE FIRST GLOBAL NOTE OFFERING FROM A LATIN AMERICAN ISSUER ARGENTINA'S ONE BILLION DOLLAR SALE IN EARLY DECEMBER GLOBAL BONDS ARE USUALLY ISSUED SIMULTANEOUSLY IN ALL THE WORLD'S MAJOR MARKETS AND ARE OFTEN SOLD IN AMOUNTS OF ONE BILLION DOLLARS OR MORE THE ADVANTAGE TO THE ISSUER IS THE ABILITY TO GARNER LOWER INTEREST RATES BECAUSE IT IS EASIER FOR MORE INVESTORS TO BUY THEM THE ADVANTAGE TO INVESTORS IS THAT A GLOBAL BOND IS SUPPOSED TO BE MORE LIQUID OR EASILY TRADED THAN A BOND DESIGNED TO TRADE IN JUST ONE MARKET THE COMBINATION OF GREATER LIQUIDITY AND A RELATIVELY ATTRACTIVE YIELD MAKE FOR AN APPEALING BUY FOR AMERICAN INVESTORS LOOKING FOR HIGHER YIELDS BANCOMEXT IS EXPECTED TO SELL THE TEN YEAR NOTES AT A YIELD OF ONE POINT SIX OH TO ONE POINT SIX FIVE PERCENTAGE POINTS ABOVE THE U. S. TREASURY'S TEN YEAR NOTE WHICH YIELDED FIVE POINT SIX SIX PERCENT LATE YESTERDAY COMPARED WITH FIVE POINT SEVEN ONE PERCENT ON WEDNESDAY THE YIELD ON THE THIRTY YEAR TREASURY BOND DROPPED TO SIX POINT TWO SIX PERCENT FROM SIX POINT TWO NINE PERCENT ON WEDNESDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF THE YIELD ROSE MORE THAN THREE EIGHTHS POINT OR MORE THAN THREE DOLLARS AND SEVENTY FIVE CENTS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE JUST HOW FAR MEXICO HAS COME IN THE EYES OF AMERICAN INVESTORS CAN BE MEASURED BY THE NARROWING YIELD SPREADS OF MEXICAN ISSUES OVER COMPARABLE U. S. TREASURY ISSUES JUST A COUPLE OF YEARS AGO IT WAS NOT UNUSUAL TO SEE MEXICAN NOTES AND BONDS COMING AT SPREADS OF FOUR TO FIVE PERCENTAGE POINTS THE SPREAD ON YESTERDAY'S OFFERING BY BANCOMEXT WAS ORIGINALLY EXPECTED TO BE SOMETHING BETWEEN ONE POINT FIVE OH AND ONE POINT FIVE FIVE PERCENTAGE POINTS JUST SIX MONTHS AGO BANCOMEXT SOLD SECURITIES IN THE U. S. WHICH YIELDED TWO POINT ONE FIVE PERCENTAGE POINTS MORE THAN COMPARABLE U. S. TREASURYS BANCOMEXT IS MEXICO'S STATE OWNED TRADE BANK BUT SYNDICATE OFFICIALS CITED RECENT TURMOIL IN THE SOUTHERN MEXICAN STATE OF CHIAPAS AND RUMORS THAT A LARGE POSITION IN MEXICAN BONDS WAS BEING UNWOUND BY A JAPANESE INSTITUTION AS FACTORS WHICH HELPED WEAKEN DEMAND FOR THE OFFERING AND FORCE THE YIELD SPREAD TO WIDEN EVEN AT THE CURRENT SPREAD HOWEVER THE OFFERING IS ONE OF THE MOST TIGHTLY PRICED TO COME FROM A LATIN AMERICAN BORROWER TO DATE IT IS RATED B. A TWO BY MOODY'S INVESTORS SERVICE INCORPORATED AND DOUBLE B. PLUS BY STANDARD AND POOR'S CORPORATION THE NOTES WERE SOLD THROUGH JOINT LEAD UNDERWRITERS GOLDMAN SACHS AND COMPANY AND MERRILL LYNCH AND COMPANY QUOTE COUNTRIES GET HOT AND COUNTRIES GET A LITTLE COOL QUOTE SAID GERARD FINNERAN A PORTFOLIO MANAGER AT TRUST COMPANY OF THE WEST A BIG INVESTOR IN MEXICO AT LEAST FOR A FEW WEEKS THERE PEOPLE WERE CONCERNED ABOUT MEXICO AND THE PROBLEMS THEY WERE PERCEIVED TO BE HAVING HE SAID BUT IN TERMS OF CREDITS MEXICO WITH THE NORTH AMERICAN FREE TRADE AGREEMENT CLEARLY IS THE BEST CREDIT IN LATIN AMERICA HE ADDED ONE SYNDICATE MEMBER SAID ABOUT A THIRD OF THE NOTES HAD BEEN SOLD IN EUROPE AND THE FAR EAST WITH THE REST GOING TO U. S. INVESTORS CORPORATE ISSUERS SOLD NEARLY TWO BILLION DOLLARS OF NEW NOTES AND BONDS YESTERDAY INCLUDING A ONE HUNDRED MILLION DOLLAR OFFERING FROM MITCHELL ENERGY AND DEVELOPMENT CORPORATION A THREE HUNDRED MILLION DOLLAR DEAL FROM GULF CANADA RESOURCES LIMITED AND A ONE HUNDRED MILLION DOLLAR DEBT OFFERING FROM WHITMAN CORPORATION INVESTORS CONTINUE TO CLAMOR FOR CORPORATE BONDS SYNDICATE OFFICIALS SAID ANYTHING THAT COMES TO MARKET WITH A REASONABLE PRICE IS GOING TO BE A FOODFIGHT SAID ONE SYNDICATE OFFICIAL HE SAID INVESTORS ARE NOT RECEIVING EVEN CLOSE TO THE AMOUNT OF BONDS THEY ARE REQUESTING IN NEW ISSUES STRONG INVESTOR DEMAND FOR CORPORATE BONDS IS ALSO APPARENT IN THE INVESTMENTGRADE SECONDARY MARKET WHERE TRADING DURING THE SESSION WAS LIGHT AND PRICES FOLLOWED TREASURYS HIGHER INVESTORS PILED CASH INTO SHORT TERM AND INTERMEDIATE TERM TREASURY SECURITIES BETTING THAT THE UNSEASONABLY COLD WEATHER ACROSS MUCH OF THE U. S. COULD PUT A CHILL ON ECONOMIC ACTIVITY MOST TREASURY SECURITIES POSTED PRICE GAINS WITH THE BENCHMARK THIRTY YEAR BOND RISING MORE THAN THREE EIGHTHS POINT TO NINETY NINE AND TWENTY THREE THIRTY SECONDS THE TEN YEAR NOTE RISING THREE EIGHTHS POINT TO ONE HUNDRED AND EIGHTEEN THIRTY SECONDS AND THE SEVEN YEAR NOTE RISING NEARLY THREE EIGHTHS POINT TO ONE HUNDRED ONE AND TWENTY THIRTY SECONDS TRADERS SAID THAT INVESTORS FLUSH WITH CASH TOOK COMFORT IN THE ARGUMENT THAT THE COLD SNAP ALONG WITH THE EARTHQUAKE IN SOUTHERN CALIFORNIA COULD RESTRAIN ECONOMIC ACTIVITY AFTER ITS HEATED FOURTH QUARTER PERFORMANCE IF ECONOMIC GROWTH DOES SLOW FROM WHAT ANALYSTS SAY MIGHT HAVE BEEN A FIVE PERCENT RATE OF GROWTH AT THE END OF NINETEEN NINETY THREE THE FEDERAL RESERVE WILL NOT HAVE TO RAISE SHORT TERM INTEREST RATES INVESTORS REASONED PEOPLE HAVE DECIDED THAT THE UPCOMING ECONOMIC REPORTS WILL REFLECT SOME SOFTNESS BECAUSE OF THE COLD WEATHER AND THAT CREATES THE PERCEPTION THAT THE FED MIGHT HESITATE A BIT MORE BEFORE PULLING THE TRIGGER SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS ANALYSTS AGREED THAT WHEN THE ECONOMIC FIGURES FOR JANUARY ARE RELEASED NEXT MONTH THEY WILL LIKELY BE ON THE SOFT SIDE THERE IS NOT VERY MUCH ECONOMIC ACTIVITY OCCURRING EAST OF THE MISSISSIPPI OR IN LOS ANGELES SAID ALAN LEVENSON MONEY MARKET ECONOMIST AT U. B. S. SECURITIES INCORPORATED WITH SENTIMENT LEANING TOWARD BULLISH FOR THE TIME BEING INVESTORS OPTED TO IGNORE NEWS OF A STRONGER HOUSING SECTOR AND INSTEAD CHOSE TO FOCUS ON FIGURES WITH HINTS OF SOFTNESS WHEN THE COMMERCE DEPARTMENT REPORTED YESTERDAY MORNING THAT HOUSING STARTS ROSE A GREATER THAN FORECAST SIX POINT TWO PERCENT THERE WAS ONLY A BRIEF SELL OFF IN THE END THE MARKET PAID MORE ATTENTION TO AN UNEXPECTED RISE IN INITIAL UNEMPLOYMENT CLAIMS OF TWENTY THREE THOUSAND TO A LEVEL OF THREE HUNDRED EIGHTY THOUSAND FOR THE WEEK ENDED JANUARY FIFTEENTH QUOTE THE REPORTS YESTERDAY MORNING WERE CONFLICTING QUOTE SAID MR. KARYDAKIS OF FIRST CHICAGO THE MARKET WAS CONFUSED FOR A WHILE BUT AS THE DAY WORE ON PEOPLE DECIDED TO THROW THEIR LOT BEHIND THE RISE IN CLAIMS AND IGNORE THE RISE IN HOUSING STARTS THE BOND MARKET ALSO CHOSE TO SEE THE BRIGHTER SIDE OF THE JANUARY PHILADELPHIA FEDERAL RESERVE BUSINESS OUTLOOK SURVEY AS THE FED BANK'S INDEX CAME IN AT THIRTY FOUR POINT TWO DOWN FROM FORTY TWO POINT NINE IN DECEMBER ANALYSTS NOTED THAT DESPITE THE DECLINE THE INDEX STILL REFLECTED SOLID GROWTH IN MANUFACTURING FOR THE PHILADELPHIA AREA LATE YESTERDAY THE TWO YEAR NOTE TO BE AUCTIONED NEXT TUESDAY WAS YIELDING FOUR POINT OH EIGHT PERCENT IN WHEN ISSUED TRADING WHILE THE FIVE YEAR NOTE TO BE AUCTIONED NEXT WEDNESDAY WAS YIELDING FIVE POINT OH THREE PERCENT MUNICIPAL ISSUES FOLLOWED THE TREASURY MARKET DIPPING IN EARLY TRADING AND STRENGTHENING AS THE DAY PROGRESSED DEALINGS WERE HIGHLIGHTED BY THE COMPETITIVE SALE OF ILLINOIS'S TWO HUNDRED FORTY NINE POINT SIX MILLION DOLLAR REFUNDING GENERAL OBLIGATION BONDS A MERRILL LYNCH AND COMPANY GROUP WON THE BONDS WITH A BID SETTING THE TRUE INTEREST COST AT FOUR POINT FIVE NINE PERCENT YIELDS FOR REOFFERED BONDS RANGE FROM THREE POINT EIGHT OH PERCENT IN NINETEEN NINETY EIGHT TO FOUR POINT NINE FIVE PERCENT IN TWO THOUSAND EIGHT THE ISSUE WAS RATED DOUBLE A BY MOODY'S INVESTORS SERVICE INCORPORATED AND DOUBLE A MINUS BY STANDARD AND POOR'S CORPORATION THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S FIVE POINT FIVE OH PERCENT OF TWO THOUSAND TWENTY FOUR BONDS WERE ONE QUARTER POINT STRONGER AT NINETY NINE AND ONE QUARTER TO YIELD FIVE POINT FIVE TWO PERCENT PRICES WERE UNCHANGED TO AS MUCH AS ONE HALF HIGHER IN LATE DEALINGS THERE WAS SOLID DEMAND FOR THE MORE THAN ONE BILLION DOLLARS OF BONDS SOLD YESTERDAY AND WEDNESDAY AND MUNI SPECIALISTS SAY THE MARKET IS FARING WELL GIVEN THIS MONTH'S UNEXPECTEDLY HEAVY ISSUANCE PRICES OF MORTGAGE SECURITIES ROSE ALTHOUGH TRADING SLOWED WITH THE HEAVIEST ACTIVITY IN THE LOW COUPON SECTOR LOW COUPON ISSUES OFTEN BENEFIT ON NEWS THAT HOMEOWNER REFINANCING ACTIVITY IS CLIMBING THE MORTGAGE BANKERS ASSOCIATION REPORTED LATE WEDNESDAY THAT ITS REFINANCING INDEX CLIMBED TO EIGHT HUNDRED SEVENTY THREE POINT TWO IN THE WEEK ENDED JANUARY FOURTEENTH FROM A REVISED SEVEN HUNDRED THIRTY EIGHT POINT ONE IN THE PREVIOUS WEEK AMONG SIX AND ONE HALF PERCENT SECURITIES FOR FEBRUARY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION WAS UP TEN THIRTY SECONDS AT ONE HUNDRED AND ONE THIRTY SECOND FEDERAL HOME LOAN MORTGAGE CORPORATION GOLDS AND FEDERAL NATIONAL MORTGAGE ASSOCIATION WERE BOTH UP EIGHT THIRTY SECONDS AT ONE HUNDRED AND FIVE THIRTY SECONDS AND ONE HUNDRED RESPECTIVELY AMONG THE CURRENT COUPON THOSE PRICED BELOW PAR SIX PERCENT ISSUES PRICES WERE UP NINE THIRTY SECONDS TO TEN THIRTY SECONDS PAUL HANNON IN LONDON CONTRIBUTED TO THIS ARTICLE YOU SAY YOU'RE SICK OF THE COLD AND THE ICE AND SNOW AND YOU'RE LOOKING FORWARD TO A MUCH NEEDED VACATION IN SOME SUNNY CARIBBEAN HIDEAWAY YOU'VE BOUGHT DISCOUNTED AIR TICKETS GOT A GOOD DEAL ON A SWANK RESORT AND EVEN BOOKED THE DOG AT THE KENNEL BUT HAVE YOU CHECKED YOUR INSURANCE THAT'S RIGHT INSURANCE WHILE MOST TRAVELERS PROBABLY NEVER THINK ABOUT IT THE KIND OF PROTECTION THEY TAKE FOR GRANTED AT HOME MAY BEAR LITTLE RESEMBLANCE TO WHAT THEY HAVE WHEN THEY TRAVEL ABROAD ESPECIALLY IF THEY'RE VENTURING OUTSIDE THE MAJOR DEVELOPED COUNTRIES MEDICARE FOR INSTANCE GENERALLY DOESN'T PAY FOR HOSPITAL OR MEDICAL SERVICES OUTSIDE THE U. S. AND ITS TERRITORIES IF YOU'RE COVERED BY A HEALTH MAINTENANCE ORGANIZATION OR A PREFERRED PROVIDER ORGANIZATION YOU MAY BE ONLY PARTIALLY COVERED WHEN YOU'RE OUTSIDE THE COUNTRY AND YOUR PRIVATE HEALTH INSURANCE MAY NOT FOOT THE BILL IF YOU HAVE TO BE EVACUATED BY AIR FROM SOME OUT OF THE WAY SPOT WITH INADEQUATE HOSPITALS AND FLOWN BACK TO THE U. S. SO BEFORE YOU START PACKING YOUR BAGS CALL YOUR MEDICAL AUTO AND HOMEOWNERS INSURANCE PLANS AND FIND OUT TO WHAT EXTENT YOU ARE COVERED OUTSIDE THE U. S. ALSO CHECK YOUR CREDIT CARD COMPANIES TO SEE WHAT IF ANY COVERAGE THEY PROVIDE BUT DON'T AUTOMATICALLY SIGN UP FOR THE SPECIAL TRAVEL INSURANCE PACKAGES SOLD THROUGH MANY TRAVEL AGENCIES THIS INSURANCE UNDERWRITTEN BY A NUMBER OF INSURANCE COMPANIES PROVIDES SHORT TERM COVERAGE INCLUDING TRIP CANCELLATION PROTECTION AND EMERGENCY MEDICAL CARE THE PRICE HOWEVER CAN BE RELATIVELY EXPENSIVE FIVE POINT FIVE PERCENT TO EIGHT PERCENT OF YOUR TRIP'S TOTAL COST DEPENDING UPON HOW MANY RISKS YOU INSURE AGAINST THE TRAVEL AGENT OFTEN GETS A COMMISSION OF THIRTY PERCENT OF YOUR PREMIUM AND WHILE SOME OF THE PROTECTION AVAILABLE COULD BE A GODSEND IN AN EMERGENCY A NUMBER OF INDEPENDENT INSURANCE ADVISERS DOUBT MOST PEOPLE REALLY NEED A LOT OF THE COVERAGE BEING SOLD QUOTE MOST OF THE TRAVEL RELATED INSURANCE ISN'T WORTH IT QUOTE SAYS ROBERT HUNTER TEXAS INSURANCE COMMISSIONER IT HAS TOO MANY EXCLUSIONS AND EXCEPTIONS AND IT'S TARGETED TOWARD INEXPERIENCED TRAVELERS EXPERIENCED TRAVELERS SELDOM BUY IT SOMETIMES IT'S A WASTE BECAUSE YOU ALREADY HAVE THIS COVERAGE WITH YOUR OWN HEALTH INSURANCE PLAN SAYS PETER A. DICKINSON EDITOR OF THE RETIREMENT LETTER A POTOMAC MARYLAND NEWSLETTER AND CHANCES ARE YOU CAN GET A SHORT TERM RIDER ON YOUR OWN POLICY THAT WILL COVER YOU AND BE A LOT LESS EXPENSIVE EVALUATING WHETHER THE PROTECTION YOU GET FROM ONE OF THESE POLICIES IS WORTH ITS COST REQUIRES YOU TO FIND OUT WHAT THE POLICIES YOU ALREADY HAVE COVER WHILE YOU ARE TRAVELING THEN YOU HAVE TO LOOK CAREFULLY AT THE COVERAGE IN THE SPECIAL TRAVEL INSURANCE PACKAGES ONE OF THE MOST USEFUL TYPES OF TRAVEL INSURANCE COVERS MEDICAL EXPENSES IN CASE OF SUDDEN ILLNESS OR AN ACCIDENT AND MEDICAL EVACUATION WHEN REQUIRED COMPANIES USUALLY MAINTAIN TWENTY FOUR HOUR HOTLINES AND ONCE YOU CALL A STAFF MEMBER TAKES CHARGE OF MAKING ARRANGEMENTS FOR A DOCTOR'S APPOINTMENT HOSPITALIZATION OR AIR EVACUATION TO THE NEAREST APPROVED MEDICAL FACILITY PEOPLE WHO'VE BEEN FLOWN TO SAFETY BY A MEDICAL AIR EVACUATION FROM A REMOTE SPOT SAY THEY WERE GRATEFUL TO HAVE THE COVERAGE ONE SATISFIED CUSTOMER IS ROBERT BENT A DEFENSE INDUSTRY CONSULTANT FROM SPRINGFIELD VIRGINIA WHO FOUND HIMSELF IN DEEP TROUBLE LAST NOVEMBER ON A SCUBA DIVING VACATION ON GRAND CAYMAN ISLAND HE ENDED UP WITH A CASE OF THE BENDS WHICH IS A BUILDUP OF NITROGEN BUBBLES IN THE BLOODSTREAM THAT CAN RESULT IN DEATH EVEN THOUGH HE SAYS HE OBSERVED ALL THE DIVING RULES MR. BENT FIFTY SIX YEARS OLD HAD TO BE FLOWN IN A SPECIALLY PRESSURIZED AIRPLANE WITH DOCTOR AND NURSE TO A HYPERBARIC CHAMBER AT DUKE UNIVERSITY IN NORTH CAROLINA FOR TWO WEEKS OF FURTHER TREATMENT THE TAB FOR THE AIR EVACUATION FOURTEEN THOUSAND DOLLARS CASH UPFRONT ON THE RUNWAY OR THE PLANE WOULDN'T FLY FORTUNATELY MR. BENT HAD SPECIAL COVERAGE FOR THIS CATASTROPHE THROUGH ACCESS AMERICA INCORPORATED A RICHMOND VIRGINIA TRAVEL INSURANCE COMPANY WHICH ARRANGED FOR THE FLIGHT IF YOU WANT THIS SPECIAL COVERAGE MAKE SURE ANY TRAVEL POLICY YOU BUY ACTUALLY INCLUDES IT DON'T JUST ASSUME THAT IT DOES CHECK TO SEE THAT MEDICAL EVACUATION IS A FUNDED BENEFIT BY YOUR INSURANCE COMPANY ADVISES JOHN COOK DIRECTOR OF THE TRAVEL INSURANCE DIVISION OF TRAVELERS INSURANCE COMPANIES HARTFORD CONNECTICUT A SUBSIDIARY OF TRAVELERS INCORPORATED IT'S ALSO IMPORTANT TO EXAMINE THE LIMITATIONS AND EXCLUSIONS IN ANY TRAVEL POLICY YOU CONSIDER YOU MUST LOOK AT THE RESTRICTIONS THE FINE PRINT AND THE WHEREASES AND WHEREFORES SAYS BOBBIE SYLVESTER A SALT LAKE CITY TRAVEL CONSULTANT FOR EXAMPLE ALL TRAVEL INSURANCE POLICIES HAVE QUOTE PRE EXISTING CONDITION QUOTE CLAUSES THAT MEANS YOU WON'T BE COVERED IF YOU SUFFER AN ILLNESS PRIOR TO GOING ON A TRIP AND THAT SAME ILLNESS FLARES UP ON YOUR TRIP BUT NOT ALL TRAVEL INSURERS INTERPRET PRE EXISTING IN THE SAME WAY SO IT'S BEST TO CALL AN EIGHT HUNDRED NUMBER TO GET THE INSURANCE COMPANY TO EXPLAIN WHAT IT MEANS MR. COOK SAYS TRAVELERS DOESN'T CONSIDER A MEDICAL CONDITION THAT IS CONTROLLED BY MEDICATION A PRE EXISTING CONDITION IF THE CONDITION HASN'T CHANGED PRIOR TO THE TRIP FOR EXAMPLE A PERSON WHO WAS TAKING HIGH BLOOD PRESSURE MEDICATION BUT HAD NO HEART PROBLEMS WOULD BE COVERED FOR A HEART ATTACK ON A TRIP THE MOST POPULAR TYPE OF TRAVEL INSURANCE IS TRIP CANCELLATION AND INTERRUPTION INSURANCE IT COSTS ABOUT FIVE DOLLARS AND FIFTY CENTS PER ONE HUNDRED DOLLARS OF COVERAGE AND COVERS THE COST OF ANY PAYMENTS YOU'VE MADE IF YOU A TRAVEL COMPANION OR A CLOSE RELATIVE BECOMES ILL BEFORE THE TRIP MANY POLICIES ALSO PROVIDE FOR A REFUND IF YOU HAVE TO CUT YOUR TRIP SHORT FOR SUCH REASONS AS PERSONAL ILLNESS OR THE DEATH OF A FAMILY MEMBER TRIP CANCELLATION INSURANCE PAID OFF LAST YEAR FOR ANNE MIGLIETTA A RETIREE FROM PALISADES PARK N. J. HER HUSBAND HUGO HAD TO GO INTO A HOSPITAL FOR AN UNEXPECTED HEART BYPASS OPERATION A FEW DAYS BEFORE THEY WERE SUPPOSED TO LEAVE FOR A WEEK LONG NONREFUNDABLE TRIP TO NEW ORLEANS MR. AND MRS. MIGLIETTA GOT THEIR TWO THOUSAND FOUR HUNDRED DOLLARS BACK FROM TRAVEL GUARD INTERNATIONALE OF STEVENS POINT WISCONSIN BUT MR. HUNTER THE TEXAS INSURANCE COMMISSIONER SAYS IT MAKES MORE SENSE TO HIM TO BUY A REFUNDABLE TICKET IN THE FIRST PLACE HE CONCEDES THAT IF YOU GET A GOOD LOW COST DEAL ON A NONREFUNDABLE TRIP PACKAGE IT COULD BE WORTH PAYING FOR TRIP CANCELLATION INSURANCE IF THAT TOTAL WAS LESS THAN THE COST FOR A REFUNDABLE TICKET TRIP CANCELLATION INSURANCE CAN ALSO PROTECT YOU IF YOUR TOUR OPERATOR OR THE AIRLINE GOES OUT OF BUSINESS BUT YOU HAVE TO READ YOUR POLICY CAREFULLY SAYS STAN BOSCO ASSISTANT DIRECTOR OF CONSUMER AFFAIRS FOR THE AMERICAN SOCIETY OF TRAVEL AGENTS SOME POLICIES PAY OFF ONLY IF THE TOUR OPERATOR OR AIRLINE FILES FOR CHAPTER ELEVEN BANKRUPTCY PROTECTION FROM CREDITORS OTHERS PAY OFF IF THE TOUR OPERATOR MERELY CEASES OPERATIONS THE MORE COMMON DANGER MANY BUSTED TOUR OPERATORS DON'T FILE FOR CHAPTER ELEVEN HE SAYS SOME LEAVE IN THE MIDDLE OF THE NIGHT TRAVEL PROS ALSO WARN CRUISE PASSENGERS TO BE CAREFUL NOT TO PUT TOO MUCH FAITH IN CANCELLATION WAIVERS OFFERED BY CRUISE LINES THESE WAIVERS WHICH OFTEN COST SIXTY DOLLARS TO EIGHTY DOLLARS ALLOW YOU TO ESCAPE PAYING A CANCELLATION PENALTY IF YOU CANCEL YOUR TRIP BECAUSE OF AN ILLNESS OR ACCIDENT BUT THEY PROTECT YOU ONLY UP TO SEVENTY TWO HOURS BEFORE DEPARTURE SAYS ADA BROWN OWNER OF SEASIDE TRAVEL HOUSE LONG BEACH CALIFORNIA IF YOU CANCEL IN THAT LAST SEVENTY TWO HOUR PERIOD YOU HAVE NO WAIVER M. B. COMMUNICATIONS INCORPORATED SAID THE INTERNAL REVENUE SERVICE RULED THAT ITS PLANNED SPINOFF OF ITS MICOM COMMUNICATIONS CORPORATION UNIT WILL BE TAX FREE FOR SHAREHOLDERS M. B. NOW MUST REACH AGREEMENT WITH CERTAIN NOTEHOLDERS BEFORE IT CAN SPIN OFF THE UNIT THE COMPANY SAID IT'S UNLIKELY THE TRANSACTION WILL OCCUR BEFORE MID NINETEEN NINETY FOUR MICOM DESIGNS MAKES AND MARKETS WIDE AREA NETWORKING PRODUCTS FOR SMALL AND MEDIUM SIZE NETWORK USERS M. B. ORIGINALLY ANNOUNCED THE TRANSACTION IN JULY NINETEEN NINETY THREE ATLANTIC RICHFIELD COMPANY AS EXPECTED AGREED TO SELL ITS TWELVE YEAR OLD LANDMARK OFFICE TOWER IN DALLAS TO TEXAS UTILITIES COMPANY FOR TWENTY NINE MILLION DOLLARS THE FORTY NINE STORY BUILDING DESIGNED BY I. M. PEI COST ABOUT ONE HUNDRED NINETY MILLION DOLLARS TO BUILD ARCO PREVIOUSLY SAID IT WOULD TAKE A CHARGE AGAINST NINETEEN NINETY THREE FOURTH QUARTER EARNINGS TO REFLECT THE SALE OF THE BUILDING AND OTHER ITEMS BUT THE COMPANY HASN'T DISCLOSED THE PRECISE AMOUNT OF THE LOSS ON THE REAL ESTATE THE SALE HAS GENERATED CONTROVERSY IN DALLAS BECAUSE AGENTS FOR OTHER PROSPECTIVE PURCHASERS CLAIMED THAT ARCO FAILED TO RESPOND TO HIGHER BIDS SUBMITTED BY THEIR CLIENTS THESE CRITICS CLAIMED THAT ARCO NEGOTIATED A CUT RATE PRICE FOR THE PROPERTY BECAUSE THE UTILITY IS A MAJOR CUSTOMER ARCO HAS DECLINED TO COMMENT ON SUCH ALLEGATIONS I WAS DISAPPOINTED TO READ THE UNFAIR ASSESSMENT OF BRAZILIAN SOCIETY IN YOUR JANUARY FOURTH PAGE ONE ARTICLE QUOTE MORAL ISSUE WHY DOES BRAZIL FACE SUCH WOES QUOTE YOU DESERVE CREDIT FOR ATTEMPTING TO ANALYZE A DIFFICULT AND COMPLICATED SUBJECT THE MORAL ETHICAL AND ATTITUDINAL FACTORS CONTRIBUTING TO BRAZIL'S SOCIAL ECONOMIC AND POLITICAL PROBLEMS YOUR ANALYSIS HAD THOUGHTFUL AND INFORMATIVE ELEMENTS OVERALL HOWEVER IT WAS ERRONEOUS AND UNBALANCED YOU EXAMINED IN DETAIL BRAZIL'S CONTINUING DIFFICULTIES WITH INFLATION POVERTY CORRUPTION CRIMINALITY VIOLENCE AND DEATH SQUADS THOUGH MUCH OF WHAT YOU SAID WAS ACCURATE YOU LEFT OUT AN IMPORTANT ASPECT OF RECENT DEVELOPMENTS THE EXTENT TO WHICH BRAZIL HAS MADE PROGRESS IN MOST OF THESE PROBLEM AREAS DURING THE PAST FEW YEARS YOU DESCRIBED HOW SOME BRAZILIANS PROFIT FROM INFLATION THEY WOULD PREFER NO INFLATION BUT SINCE IT EXISTS THEY SHOULD NOT BE CONDEMNED FOR TRYING TO PROTECT THEMSELVES FROM ITS PERVERSE EFFECTS YOU DESCRIBED HOW THE POOR SUFFER GREATLY FROM INFLATION BUT YOU FAILED TO MENTION THE NATIONAL MOBILIZATION AGAINST HUNGER POVERTY AND UNEMPLOYMENT YOU CITED ANECDOTES TO SUPPORT THE CLAIM THAT IN BRAZIL THERE IS WIDESPREAD ACCEPTANCE OF CORRUPTION CRIMINALITY AND VIOLENCE THIS SIMPLY IS NOT TRUE AN ANALYSIS OF OPINION POLLS AND ELECTION RESULTS EITHER OF WHICH WOULD BE A BETTER MEASURE THAN ANECDOTES WOULD DEMONSTRATE CLEARLY THAT THE BRAZILIAN PEOPLE HAVE ABSOLUTELY NO TOLERANCE FOR CORRUPTION CRIMINALITY AND VIOLENCE RATHER THAN BEING COMPLACENT PARTICIPANTS IN A PACT OF MEDIOCRITY AS YOU WOULD HAVE US BELIEVE MOST BRAZILIANS IN FACT ARE EXTREMELY ANGRY ABOUT MORAL ETHICAL AND ATTITUDINAL WEAKNESSES SUCH AS THE EXAMPLES YOU CITED THIS WIDESPREAD POPULAR ANGER HAS BEEN REFLECTED IN GOVERNMENT ACTIONS BRAZIL IN THE PAST THREE YEARS HAS BEEN FAR MORE AGGRESSIVE THAN MOST OTHER COUNTRIES IN DEALING WITH THE PROBLEM OF CORRUPTION THE IMPEACHMENT OF PRESIDENT COLLOR WAS RAPID FAIR PEACEFUL AND CONSTITUTIONAL ON DECEMBER FIFTEENTH OUR CONGRESS VOTED TO EXPEL THREE CONGRESSMEN FOR CORRUPTION AND A CONGRESSIONAL INVESTIGATORY COMMITTEE IS EXPECTED TO RECOMMEND ADDITIONAL PUNISHMENTS AND LASTING CORRECTIVE MEASURES LATER THIS MONTH THIS YEAR BRAZIL AGAIN WILL HOLD NATIONAL STATE AND MUNICIPAL ELECTIONS GIVING THE ELECTORATE ESTIMATED TO BE ABOUT ONE HUNDRED MILLION VOTERS ANOTHER OPPORTUNITY TO SHOW BRAZILIANS' COMMITMENT TO DEMOCRACY AND HIGH STANDARDS CROP DAMAGE AND PROPERTY LOSSES FROM LAST SUMMER'S DEVASTATING FLOODS PUSHED DOWN PERSONAL INCOME IN TEN MIDWESTERN AND WESTERN STATES DURING LAST YEAR'S THIRD QUARTER THE COMMERCE DEPARTMENT SAID INCOME IN THE STATES ALSO FELL BECAUSE OF DECLINES IN FEDERAL FARM SUBSIDIES INCOME FELL MOST STEEPLY BY SEVEN POINT ONE PERCENT IN NORTH DAKOTA IT ALSO DROPPED IN IDAHO MONTANA SOUTH DAKOTA MINNESOTA IOWA NEBRASKA KANSAS MISSOURI AND ARIZONA PERSONAL INCOME INCREASED IN ALL OTHER STATES EXCEPT VERMONT WHERE IT FELL ZERO POINT ONE PERCENT AS FACTORY LAYOFFS AND A CONSTRUCTION SLOWDOWN REDUCED PAYROLLS FOR THE NATION AS A WHOLE PERSONAL INCOME INCREASED A MODEST ZERO POINT SEVEN PERCENT IT WAS HELD BACK BY WEAK MANUFACTURING PARTICULARLY IN AUTOS WHICH HAS SINCE IMPROVED DROUGHT IN THE SOUTHEAST ALSO HURT FARM INCOME DAVID H. KATZ WAS ELECTED A DIRECTOR OF THIS MAKER OF SEMICONDUCTOR BASED LASER PRODUCTS FILLING A VACANCY ON THE BOARD THAT NOW HAS FIVE MEMBERS DOCTOR KATZ FIFTY YEARS OLD IS PRESIDENT CHIEF EXECUTIVE OFFICER AND CO FOUNDER OF LIDAK PHARMACEUTICALS BASED IN SAN DIEGO SHORT INTEREST CONTINUED ITS STEADY ASCENT ON THE NEW YORK STOCK EXCHANGE RISING TWO POINT EIGHT PERCENT TO A RECORD LEVEL OF ONE POINT TWO EIGHT BILLION SHARES IN MID JANUARY BIG BOARD SHORT INTEREST TOTALED ONE BILLION TWO HUNDRED SEVENTY FIVE MILLION SIX HUNDRED FOURTEEN THOUSAND FOUR HUNDRED SEVENTY ONE SHARES UP FROM ONE BILLION TWO HUNDRED FORTY MILLION SEVEN HUNDRED TWENTY THOUSAND NINE HUNDRED TWENTY EIGHT A MONTH EARLIER SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE INCREASED EIGHT HUNDRED FORTY NINE THOUSAND TWO HUNDRED EIGHTY FOUR SHARES TO ONE HUNDRED TWO MILLION FOUR HUNDRED FIFTY THOUSAND FIVE HUNDRED FOUR FROM AN ADJUSTED ONE HUNDRED ONE MILLION SIX HUNDRED ONE THOUSAND TWO HUNDRED TWENTY REPORTED IN MID DECEMBER R. J. R. NABISCO HOLDINGS CORPORATION'S SHORT INTEREST POSITION SOARED FIVE POINT THREE MILLION SHARES TO TWENTY SEVEN POINT FIVE MILLION SHARES POSSIBLY REFLECTING HIGH ARBITRAGE LEVELS IN THE COMPANY'S STOCK ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE FOOD AND TOBACCO COMPANY BUMPED WALT DISNEY COMPANY FROM THE TOP OF THE LIST TO SECOND PLACE ALTHOUGH THE ENTERTAINMENT AND MOVIE CONCERN'S SHORT POSITION ROSE ONE POINT THREE MILLION SHARES TO TWENTY FOUR POINT ONE MILLION SHARES THE SHORT INTEREST POSITION OF COLUMBIA HEALTHCARE CORPORATION SHOWED A HUGE JUMP INCREASING EIGHT POINT THREE MILLION SHARES TO TWENTY TWO POINT THREE MILLION GUY WYSER PRATT PRESIDENT OF NEW YORK BASED GUY WYSER PRATT AND COMPANY WHICH SPECIALIZES IN ARBITRAGE SAID COLUMBIA'S SHORT POSITION PROBABLY RELATES TO THE COMPANY'S PENDING PLAN TO ACQUIRE H. C. A. HOSPITAL CORPORATION OF AMERICA FOR FIVE POINT SEVEN BILLION DOLLARS IN STOCK INVESTORS ARE PROBABLY SHORTING COLUMBIA'S SHARES IN ANTICIPATION OF COVERING THEIR SHORT POSITIONS BY CONVERTING THEIR H. C. A. STOCK WHEN THE ACQUISITION CLOSES HE SAID MR. WYSER PRATT ADDED THAT THE RECORD LEVELS OF SHORT INTEREST ON THE BIG BOARD IN RECENT MONTHS ARE CLOSELY TIED TO A WAVE OF CORPORATE TAKEOVERS SIMILAR TO THE COLUMBIA H. C. A. PLAN E. M. C. CORPORATION A MAKER OF COMPUTER PRODUCTS REGISTERED THE BIGGEST INCREASE IN SHORT INTEREST WITH THE NUMBER OF SHARES SHORTED MORE THAN DOUBLING TO FIFTEEN POINT ONE MILLION FROM SIX POINT EIGHT MILLION MR. WYSER PRATT SAID THIS MAY RELATE TO THE DETERIORATION OF PRICES FOR SOME COMPUTER PRODUCTS TRADERS WHO SELL SECURITIES QUOTE SHORT QUOTE BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS RISING SHORT INTEREST IN THE PAST HAS BEEN CONSIDERED BULLISH BY SOME ANALYSTS BECAUSE SHORT INTEREST TRADERS WOULD BE REQUIRED TO BUY BACK LARGE QUANTITIES OF SHARES THEY HAVE BORROWED HOWEVER SHORT PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS MAY HAVE REDUCED THE EFFECTIVENESS OF THIS MEASURE OTHERS SAY THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO ROSE TO FOUR POINT SIX OH FROM FOUR POINT FIVE SEVEN THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY BIG BOARD VOLUME WAS TWO HUNDRED SEVENTY SEVEN POINT TWO MILLION SHARES BIG BOARD AND AMEX SHORT INTEREST POSITIONS WERE CALCULATED FOR THE MONTH INCLUDING THE TWENTY ONE TRADING DAYS THROUGH JANUARY SEVENTH WITH JANUARY FOURTEENTH AS THE SETTLEMENT DATE.END THE FOLLOWING TABLES SHOW THE BIG BOARD AND AMEX ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST TWO HUNDRED FIFTY THOUSAND SHARES EXISTED AT MID JANUARY OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST FIFTY THOUSAND SHARES SINCE MID DECEMBER SELF RELIANCE IS AS IMPORTANT AS GOVERNMENT PROGRAMS IN PROMOTING ECONOMIC ADVANCEMENT OF BLACKS THE NATIONAL URBAN LEAGUE SAID IN ITS ANNUAL QUOTE STATE OF BLACK AMERICA QUOTE REPORT JOHN JACOB THE LEAGUE'S PRESIDENT CALLED SELF DEVELOPMENT THE FIRMEST STRATEGIC FOUNDATION FOR BLACK ADVANCEMENT BUT HE SAID THE GOVERNMENT PLAYS A CRITICAL ROLE IN CREATING AN ENVIRONMENT IN WHICH BLACKS' EFFORTS COULD FLOURISH HE CALLED ON PRESIDENT CLINTON TO MAKE JOB CREATION AND TRAINING FOR THE DISADVANTAGED A TOP PRIORITY SAYING BLACKS NEED LOW SKILL JOBS THAT WILL LET THEM RAISE FAMILIES AND EDUCATE THEIR CHILDREN FOR THE HIGH SKILL JOBS OF THE FUTURE WE WANT TO SEE THE PRESIDENT PRESS AS HARD FOR JOBS AS HE DID FOR NAFTA MR. JACOB SAID HE ADDED THAT NAFTA THE NORTH AMERICAN FREE TRADE AGREEMENT ENDANGERS LOW SKILLED JOBS MAKING EFFORTS TO CREATE SUCH WORK MORE CRITICAL THAN EVER MARCUS ALEXIS AN ECONOMIST WHO COWROTE ONE CHAPTER OF THE REPORT CALLED THE NEW EMPHASIS ON SELF RELIANCE A WATERSHED MOMENT IN THE CIVIL RIGHTS MOVEMENT MR. JACOB WARNED HOWEVER THAT NEITHER THE GOVERNMENT NOR THE PRIVATE SECTOR HAS DONE ENOUGH TO ALLOW BLACKS TO SUCCEED IN THE ANNUAL REPORT HE CITED A WALL STREET JOURNAL STUDY OF COMPANIES THAT SHOWED BLACKS WERE THE ONLY GROUP TO SUFFER A NET JOB LOSS DURING THE NINETEEN NINETY TO NINETEEN NINETY ONE RECESSION AN EMPLOYMENT PATTERN THAT HE SAID AT BEST SUGGESTS COMPANIES ARE INDIFFERENT TO THEIR SOCIAL AND LEGAL OBLIGATIONS THE EXPLANATION BY SOME CORPORATIONS THAT THEY WERE MORE CONCERNED ABOUT AGGREGATE MINORITY EMPLOYMENT THAN BLACK JOB LOSSES HE WROTE RAISES THE TROUBLING POSSIBILITY THAT CORPORATE DIVERSITY PROGRAMS COULD BECOME BARELY DISGUISED BLACK REMOVAL PROGRAMS MR. JACOB SAID THE GOVERNMENT SHOULD MAKE SURE THAT LOCAL UNSKILLED WORKERS GET MANY OF THE CONSTRUCTION JOBS THAT WILL BE CREATED TO REPAIR ROADS DAMAGED BY THIS WEEK'S CALIFORNIA EARTHQUAKE ONE THIRD OF BLACKS LIVED IN POVERTY IN NINETEEN NINETY TWO A MUCH HIGHER PORTION THAN THE OVERALL FOURTEEN POINT SEVEN PERCENT NATIONAL POVERTY RATE THE REPORT SAID STILL MANY OF THE REPORT'S AUTHORS REFUSED TO DWELL ON GRIM STATISTICS INSTEAD THEY DESCRIBED VACANT LOTS IN INNER CITIES AS UNNOTICED RESOURCES FOR ECONOMIC DEVELOPMENT AND CITED BLACK MIDDLE CLASS FAMILIES WHO HAD IMPROVED HOUSING AND SCHOOLS IN THEIR NEIGHBORHOODS ONE SMALL SOUTHERN CHURCH WHERE NINETY SIX PERCENT OF THE CONGREGATION WAS ON WELFARE COMBINED MEMBERS' FOOD STAMPS BOUGHT SUPPLIES FROM A WHOLESALE GROCER AND OPENED A GROCERY STORE IN THE CHURCH AUDITORIUM MR. JACOB SAID WITHIN FOUR MONTHS THE MEMBERS HAD ENOUGH MONEY TO BUY A SUPERMARKET AND EVENTUALLY THEY BOUGHT A FARM TRACTORS MEAT PROCESSING PLANTS AND RESTAURANTS NOW NOBODY IN THE CONGREGATION IS ON WELFARE HE SAID ANY GROUP THAT WAITS FOR OUTSIDE FORCES TO COME INTO THE COMMUNITY AND LIFT THEM UP IS DOOMED TO BE SITTING THERE TWENTY YEARS FROM NOW WISHING AND WAITING MR. JACOB SAID QUOTE WE CANNOT GET TRAPPED BY THE RHETORIC OF THE NINETEEN EIGHTIES AND WRITE THESE COMMUNITIES OFF QUOTE FIRST U. S. A. INCORPORATED DALLAS SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION A PLAN TO SELL FIVE MILLION SHARES OF MANDATORY CONVERTIBLE PREFERRED STOCK FOR TOTAL PROCEEDS OF ABOUT ONE HUNDRED SIXTY MILLION DOLLARS THE ISSUER AND PROCESSOR OF CREDIT CARDS SAID IT WOULD USE THE PROCEEDS FOR GENERAL CORPORATE PURPOSES POSSIBLY INCLUDING REDUCING DEBT AND PROVIDING CAPITAL TO SUBSIDIARIES FOR EXPANSION EACH OF THE NEW PREFERRED SHARES WILL CONVERT TO ONE COMMON SHARE AFTER FOUR YEARS IF NOT REDEEMED OR CONVERTED EARLIER SEPARATELY THE COMPANY REGISTERED WITH THE S. E. C. A PUBLIC OFFERING OF FIVE MILLION COMMON SHARES TO BE SOLD BY EXISTING SHAREHOLDERS MERRILL LYNCH AND COMPANY WILL BE LEAD MANAGER ON BOTH ISSUES RONALD A. JOHNSON THIRTY THREE YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS VIDEOGAME PUBLISHER SUCCEEDING MASAYUKI TSUDA FIFTY NINE WHO RETIRED MR. JOHNSON WAS FORMERLY CHIEF OPERATING OFFICER OF THE COMPANY AND PRESIDENT OF U. S. OPERATIONS THE COMPANY SAID IT HAS A ONE YEAR OPTION TO PURCHASE MOST OF MR. TSUDA'S TWENTY EIGHT PERCENT STAKE FOR FOUR POINT FIVE MILLION DOLLARS COMPUTER ASSOCIATES INTERNATIONAL INCORPORATED'S STOCK FELL SEVEN POINT NINE PERCENT DESPITE A BETTER THAN EXPECTED FIFTY FIVE PERCENT INCREASE IN FISCAL THIRD QUARTER EARNINGS IN ADDITION TO THE EARNINGS ANNOUNCEMENT THE NUMBER TWO SOFTWARE COMPANY AFTER MICROSOFT NAMED SANJAY KUMAR THIRTY ONE YEARS OLD TO THE NEW POST OF PRESIDENT AND CHIEF OPERATING OFFICER MR. KUMAR HAD BEEN EXECUTIVE VICE PRESIDENT OPERATIONS IN RESPONSE TO THE STOCK DROP CHARLES B. WANG CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW QUOTE I'M NO EXPERT ON THE STOCK MARKET I'LL JUST LISTEN TO WHAT ANALYSTS ARE SAYING THAT A LOT OF PEOPLE ARE SHORT TERM PROFIT TAKERS QUOTE MR. WANG SAID THE COMPANY WAS VERY HAPPY WITH THE COMPANY'S RESULTS WHICH EXCEEDED ANALYSTS' ESTIMATES OF SIXTY TWO CENTS TO SIXTY FIVE CENTS A SHARE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COMPUTER ASSOCIATES FELL THREE DOLLARS AND FIFTY CENTS TO CLOSE AT FORTY ONE DOLLARS FOR THE QUARTER ENDED DECEMBER THIRTY FIRST COMPUTER ASSOCIATES REPORTED NET ROSE TO ONE HUNDRED TWENTY FOUR POINT TWO MILLION DOLLARS OR SEVENTY TWO CENTS A SHARE FROM EIGHTY POINT TWO MILLION DOLLARS OR FORTY EIGHT CENTS A SHARE A YEAR EARLIER REVENUE ROSE FIFTEEN PERCENT TO FIVE HUNDRED SEVENTY FOUR POINT FOUR MILLION DOLLARS IT WAS A GOOD SOLID QUARTER BUT MOST OF THE UPSIDE WAS ON THE MARGIN SIDE SAID TIM MCCOLLUM WHO FOLLOWS SOFTWARE COMPANIES FOR DEAN WITTER REYNOLDS HE SAID THE QUARTER'S REVENUE DIDN'T SIGNIFICANTLY EXCEED ANALYSTS' ESTIMATES BUT HE SAID THAT DESPITE THE STOCK'S DROP YESTERDAY COMPUTER ASSOCIATES SHARES ARE STILL NEAR A RECORD HIGH INVESTORS DESERVED A LITTLE PROFIT TAKING HE SAID RICK SHERLUND A SOFTWARE ANALYST AT GOLDMAN SACHS CITED SEVERAL REASONS FOR THE STOCK'S DROP IT'S PUZZLING TO ME THAT COMPUTER ASSOCIATES' RELATIVELY MATURE MAINFRAME SOFTWARE PRODUCT PORTFOLIO CAN SUSTAIN CLOSE TO TWENTY PERCENT LICENSE REVENUE GROWTH AND THAT MAINTENANCE REVENUES ARE FLAT YEAR OVER YEAR HE SAID THOSE CONCERNS CAUSED PROFIT TAKING IN ADDITION MR. SHERLUND SAID THE LATEST QUARTER PERFORMANCE WASN'T THE BIG BLOWOUT WE SAW LAST QUARTER RELATIVE TO EXPECTATIONS THE COMPANY POSTED AN EIGHTY SIX PERCENT RISE IN SECOND QUARTER NET BUT MR. WANG WHO SPOKE TO ANALYSTS EARLIER YESTERDAY SAID QUOTE IN GENERAL THE BUSINESS IS STRONG AND THE OUTLOOK IS STRONG QUOTE HE SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT THE COMPANY WILL EARN TWO DOLLARS AND TWENTY CENTS A SHARE OR ABOUT THREE HUNDRED SEVENTY EIGHT POINT FOUR MILLION DOLLARS FOR THE YEAR ENDING MARCH THIRTY FIRST HE ALSO SAID HE IS COMFORTABLE WITH ESTIMATES THAT REVENUE FOR THE YEAR WILL TOTAL TWO POINT ONE BILLION DOLLARS TO TWO POINT TWO BILLION DOLLARS A YEAR EARLIER COMPUTER ASSOCIATES EARNED TWO HUNDRED FORTY FIVE POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND FORTY FOUR CENTS A SHARE ON REVENUE OF ONE POINT EIGHT FOUR BILLION DOLLARS FOR THE NINE MONTHS COMPUTER ASSOCIATES REPORTED NET INCOME OF TWO HUNDRED FORTY TWO POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND FORTY ONE CENTS A SHARE UP SIXTY SIX PERCENT FROM ONE HUNDRED FORTY SIX POINT FOUR MILLION DOLLARS OR EIGHTY SIX CENTS A SHARE A YEAR EARLIER REVENUE ROSE SIXTEEN PERCENT TO ONE POINT FIVE ONE BILLION DOLLARS COMPUTER ASSOCIATES' NEW PRESIDENT MR. KUMAR WAS ALSO NAMED TO THE BOARD AS WAS RICHARD P. GRASSO WHO IS EXECUTIVE VICE CHAIRMAN PRESIDENT AND CHIEF OPERATING OFFICER OF THE NEW YORK STOCK EXCHANGE THE ADDITIONS INCREASE THE BOARD TO EIGHT DIRECTORS MR. WANG SAID MR. KUMAR'S APPOINTMENT WAS A RECOGNITION OR FORMALIZATION OF A ROLE HE'S HAD MR. KUMAR JOINED COMPUTER ASSOCIATES WITH ITS ACQUISITION OF UCCEL CORPORATION IN AUGUST NINETEEN EIGHTY SEVEN WHERE HE WAS A DIRECTOR OF SOFTWARE DEVELOPMENT HE HAS HELD VARIOUS POSITIONS AT COMPUTER ASSOCIATES IN THE DEVELOPMENT PLANNING AND OPERATIONS AREA HE WAS NAMED EXECUTIVE VICE PRESIDENT OPERATIONS A YEAR AGO GOLD PRODUCTION AT THE PORGERA MINE IN THE PAPUA NEW GUINEA HIGHLANDS FELL THIRTEEN PERCENT TO TWO HUNDRED NINETY THOUSAND SIX HUNDRED SEVENTY FIVE OUNCES IN THE SECOND QUARTER ENDED DECEMBER THIRTY FIRST FROM THREE HUNDRED THIRTY FIVE THOUSAND TWO HUNDRED EIGHTY THREE OUNCES A YEAR EARLIER THE DECLINE WAS EXPECTED AND IS A RESULT OF LOWER GOLD GRADES FOUND AT THE OPEN PIT AND UNDERGROUND OPERATIONS THE PORGERA MINE IS OWNED EQUALLY BY FOUR PARTNERS RENISON GOLDFIELDS CONSOLIDATED LIMITED PLACER PACIFIC LIMITED HIGHLANDS GOLD LIMITED ALL BASED IN AUSTRALIA AND THE PAPUA NEW GUINEA GOVERNMENT THE PARTNERS SAID PRODUCTION FOR THE TWELVE MONTHS ENDED DECEMBER THIRTY FIRST FELL TWENTY TWO PERCENT TO ONE POINT ONE SIX MILLION OUNCES OF GOLD FROM ONE POINT FOUR NINE MILLION OUNCES A YEAR EARLIER THE PARTNERS SAID EXPANSION OF THE OPEN PIT MINE AND A HIGHER VOLUME OF ORE BEING PROCESSED AT THE PORGERA MILL IS HELPING TO PARTIALLY OFFSET THE IMPACT OF LOWER GOLD GRADES MINING IN THE OPEN PIT AVERAGED FIFTY NINE THOUSAND EIGHT HUNDRED METRIC TONS A DAY AND THE PARTNERS SAID THEY HAVE ORDERED MORE MINING EQUIPMENT TO LIFT THIS RATE TO ONE HUNDRED THOUSAND TONS A DAY BY MID NINETEEN NINETY FOUR CASH OPERATING COSTS AT THE MINE ROSE FIFTY FOUR PERCENT IN THE SECOND QUARTER TO TWO HUNDRED FORTY SIX AUSTRALIAN DOLLARS ONE HUNDRED SEVENTY TWO POINT THREE U. S. DOLLARS AN OUNCE FROM ONE HUNDRED SIXTY AUSTRALIAN DOLLARS AN OUNCE A YEAR EARLIER EINAR KLOSTER HEAD OF THE LIGHTING DIVISION OF PHILIPS ELECTRONICS N. V. RESIGNED THE FIFTY SIX YEAR OLD MR. KLOSTER WILL STEP DOWN FROM HIS POSITION QUOTE OVER THE COURSE OF THE YEAR QUOTE A PHILIPS SPOKESMAN SAID WITHOUT BEING MORE SPECIFIC A SUCCESSOR HASN'T YET BEEN NAMED MR. KLOSTER WHO JOINED THE DUTCH ELECTRONICS COMPANY IN NINETEEN SIXTY ONE HAS BEEN A MEMBER OF THE THIRTEEN MEMBER PHILIPS GROUP MANAGEMENT COMMITTEE BUT REMAINS OUTSIDE THE FIVE MEMBER BOARD THAT IS HEADED BY JAN TIMMER THE COMPANY'S TOP MANAGEMENT HAS EXPERIENCED MAJOR UPHEAVALS SINCE NINETEEN NINETY WHEN COR VAN DER KLUGT WAS FIRED AS CHAIRMAN OSTENSIBLY FOR MAKING MISLEADING PUBLIC STATEMENTS ABOUT PROFIT TRENDS UPON SUCCEEDING MR. VAN DER KLUGT MR. TIMMER IMMEDIATELY INITIATED A FAR REACHING RESTRUCTURING PROGRAM TO DOWNSIZE THE BLOATED AND MONEY LOSING PHILIPS AND THE BOARD WHICH FOR DECADES HAD BEEN CHARACTERIZED AS A CHUMMY GROUP OF GOOD OL' BOYS WITH LONGTIME PHILIPS SERVICE WAS SUDDENLY SHAKEN OUT AND IN NINETEEN NINETY TWO AND NINETEEN NINETY THREE RESTOCKED WITH THE HIGH PROFILE CORPORATE TALENT FROM OUTSIDE EINDHOVEN AND EVEN FROM OUTSIDE THE ELECTRONICS BUSINESS THE U. S. AND CANADA HAVE REACHED AN IMPASSE IN THEIR NEGOTIATIONS FOR AN AGREEMENT GOVERNING SALMON FISHING OFF THE PACIFIC COAST FISHERIES MINISTER BRIAN TOBIN SAID HE SAID THAT IN VIEW OF THE DEADLOCK CANADA HAS DECIDED AGAINST PARTICIPATING IN THE NEXT ROUND OF NEGOTIATIONS SCHEDULED TO BE HELD IN PORTLAND OREGON STARTING NEXT MONDAY THE AGREEMENT IS CONSIDERED NECESSARY TO CONSERVE LIMITED STOCKS OF SALMON THAT MIGRATE BETWEEN THE WATERS OF THE TWO COUNTRIES CANADIAN OFFICIALS SAID THE U. S. NEGOTIATORS WERE OBSTRUCTING CANADIAN EFFORTS TO WORK OUT EQUITY ARRANGEMENTS FOR THE SALMON CATCH SUCH ARRANGEMENTS WOULD ASSURE THAT EACH COUNTRY RECEIVES THE FULL FISHERIES BENEFIT FROM ITS OWN SALMON PRODUCTION SETTLEMENT OF THE EQUITY ISSUE IS IMPORTANT TO CANADA BECAUSE MUCH MORE CANADIAN SALMON IS BEING INTERCEPTED BY U. S. FISHERMEN THAN U. S. SALMON BY CANADIAN FISHERMEN UNDER PROPOSED EQUITY RULES INTERCEPTION ADVANTAGES ENJOYED BY EITHER COUNTRY ARE SUPPOSED TO BE OFFSET BY COMPENSATION AND ADJUSTMENTS IN FISHING PATTERNS BUT THIS CAN'T BE DONE UNTIL A COMPENSATION SYSTEM IS AGREED THROUGH EQUITY NEGOTIATIONS WHICH WERE SUPPOSED TO PARALLEL NEGOTIATIONS ON SALMON CATCH LIMITS THE CANADIAN OFFICIALS SAID THAT AFTER FIVE NEGOTIATING SESSIONS THE U. S. SIDE HAS STATED THAT IT HAS NO PROPOSALS TO ADVANCE THE EQUITY NEGOTIATIONS QUOTE EFFECTIVELY BLOCKING QUOTE THEM ELECTRONIC ARTS INCORPORATED SAN MATEO CALIFORNIA SAID FISCAL THIRD QUARTER NET INCOME LEAPED FORTY SEVEN PERCENT AS SALES OF ITS POPULAR COMPUTER GAMES SOARED THE COMPANY EARNED EIGHTEEN POINT ONE MILLION DOLLARS OR THIRTY SIX CENTS A SHARE IN THE PERIOD ENDED DECEMBER THIRTY FIRST COMPARED WITH TWELVE POINT THREE MILLION DOLLARS OR TWENTY SIX CENTS A SHARE A YEAR EARLIER SALES ROSE FORTY PERCENT TO ONE HUNDRED FORTY NINE POINT FIVE MILLION DOLLARS IN THE QUARTER FROM ONE HUNDRED SEVEN POINT ONE MILLION DOLLARS A YEAR EARLIER EARNINGS WERE IN LINE WITH EXPECTATIONS ON WALL STREET THE COMPANY'S SHARES FELL TWENTY FIVE CENTS TO TWENTY NINE DOLLARS IN NASDAQ STOCK MARKET TRADING LEBENTHAL AND COMPANY NAMED JAMES L. GAMMON A WIDELY KNOWN MUNICIPAL BOND TRADER PRESIDENT OF ITS NEW LEBENTHAL ASSET MANAGEMENT INCORPORATED INVESTMENT MANAGING UNIT EFFECTIVE JANUARY THIRTY FIRST MR. GAMMON FIFTY TWO YEARS OLD WAS SENIOR VICE PRESIDENT AND SENIOR PORTFOLIO MANAGER AT LOEWS SLASH C. N. A. HOLDINGS INCORPORATED A UNIT OF LOEWS CORPORATION DESPITE A REPUTATION AS A COMPETITIVE AND SUCCESSFUL BOND TRADER MR. GAMMON LEFT IN JUNE HE SAID THE DEPARTURE REFLECTED LOEWS'S DECLINING EMPHASIS ON TAX FREE MUNICIPAL BONDS AT HIS DEPARTURE HE PLANNED TO JOIN A DALLAS BASED MUTUAL FUND COMPANY BUT DECLINED THE OFFER FOR HEALTH REASONS THREE WEEKS AGO MR. GAMMON SAID DOCTORS CLEARED HIM TO WORK HIS NEW ASSIGNMENT WILL INVOLVE CONSIDERABLY LESS MONEY THAN THE BILLIONS HE MANAGED AT LOEWS SLASH C. N. A. QUOTE WE WOULD LIKE TO HAVE ABOUT FOUR HUNDRED MILLION DOLLARS IN ASSETS UNDER MANAGEMENT BY THE END OF THE FIRST YEAR QUOTE MR. GAMMON SAID AND WE BELIEVE BASED ON PRELIMINARY MARKETING THAT WE CAN DO THAT FEDERATED DEPARTMENT STORES INCORPORATED TOLD ANALYSTS IT IS DETERMINED TO PURSUE A MERGER WITH R. H. MACY AND COMPANY BUT LEFT THEM UNIMPRESSED WITH ITS ESTIMATES FOR ITS OWN SALES AND EARNINGS THE CINCINNATI BASED COMPANY IS WORKING ON A QUOTE CONCEPTUAL QUOTE PLAN FOR A MERGER OF THE TWO DEPARTMENT STORE CHAINS BUT HASN'T YET WORKED OUT DETAILS CHAIRMAN ALLEN QUESTROM TOLD ANALYSTS AT THE WALDORF ASTORIA HOTEL HERE FEDERATED RECENTLY PAID FOUR HUNDRED FORTY NINE POINT THREE MILLION DOLLARS TO ACQUIRE HALF OF PRUDENTIAL INSURANCE COMPANY OF AMERICA'S CLAIM IN MACY'S CHAPTER ELEVEN BANKRUPTCY REORGANIZATION AND SAID IT WANTS TO MERGE WITH MACY BUT ON MARCH FIFTEENTH MACY MANAGEMENT IS EXPECTED TO ASK THE U. S. BANKRUPTCY COURT IN NEW YORK TO EXTEND FOR AT LEAST ANOTHER THREE MONTHS ITS EXCLUSIVE RIGHT TO FILE A PLAN OF REORGANIZATION NEW YORK BASED MACY HAS SAID IT WISHES TO REMAIN INDEPENDENT SEPARATELY MACY SAID IT WILL BUILD A NEW BULLOCK'S STORE TO REPLACE ONE AT A MALL IN NORTHRIDGE CALIFORNIA WHICH SUSTAINED MAJOR DAMAGE IN THE LOS ANGELES EARTHQUAKE THE COMPANY SAID ITS SHERMAN OAKS BULLOCK'S STORE ALSO SUSTAINED SIGNIFICANT DAMAGE AND MAY BE CLOSED FOR MONTHS TWO OTHER BULLOCK'S STORES CLOSED BY THE EARTHQUAKE WILL REOPEN WITHIN A WEEK WHILE ONE OF MACY'S I. MAGNIN STORES WILL REMAIN CLOSED FOR SEVERAL WEEKS MACY EXECUTIVES WOULDN'T COMMENT ON THE COST OF THE DAMAGE ASKED ABOUT MR. QUESTROM'S COMMENTS CAROL SANGER A FEDERATED VICE PRESIDENT SAID OUR PREFERENCE IS TO SUBMIT A PLAN WITH MACY BUT AT SOME POINT IT WILL BECOME APPROPRIATE FOR THE COURT AND CREDITORS TO LOOK AT A PLAN THAT MAY BE AN ALTERNATIVE TO MACY'S PLAN AND THAT'S WHAT WE ARE PREPARING NOW MR. QUESTROM TOLD ANALYSTS THAT AN ALLIANCE WITH MACY WOULD GIVE A COMBINED COMPANY LOWER OPERATING EXPENSES THAT WOULD LEAD TO MORE COMPETITIVE PRICING FEDERATED OFFICIALS ALSO SAID THEY EXPECT SAME STORE SALES TO GROW TWO PERCENT TO THREE PERCENT IN NINETEEN NINETY FOUR AND TOTAL SALES TO RISE ABOUT FIVE PERCENT THEY SAID THEY EXPECT EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION TO BE IN THE RANGE OF ELEVEN PERCENT TO THIRTEEN PERCENT OF TOTAL SALES BY THE ONE THOUSAND NINE HUNDRED NINETY FIVE ONE THOUSAND NINE HUNDRED NINETY SEVENTHS PERIOD FOR THE FISCAL YEAR ENDED JANUARY THIRTY FIRST NINETEEN NINETY THREE FEDERATED'S EARNINGS ON THAT BASIS AMOUNTED TO NINE POINT THREE PERCENT OF SALES FEDERATED ALSO SAID IT WOULD OPEN NINE STORES IN NINETEEN NINETY FOUR IT'S CLEAR FEDERATED IS A GOOD OPERATOR AND DETERMINED TO MERGE WITH MACY BUT THEY WON'T SET THE WORLD ON FIRE WITH THESE NUMBERS SAID PETER N. SCHAEFFER A PARTNER WITH JOHNSON REDBOOK SERVICE FEDERATED SHARES CLIMBED THIRTY SEVEN POINT FIVE CENTS TO TWENTY TWO POINT ONE TWO FIVE DOLLARS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE LEVIATHAN GAS PIPELINE PARTNERS L. P. AND A TENNECO INCORPORATED UNIT AGREED TO JOINTLY BUILD A PIPELINE SYSTEM TO GATHER NATURAL GAS FROM PRODUCING PROPERTIES OFFSHORE LOUISIANA THE PROPERTIES BEING DEVELOPED ARE IN THE VIOSCA KNOLL AND MAIN PASS AREAS LEVIATHAN AND TENNECO GAS GATHERING COMPANY WILL EACH OWN HALF OF THE GATHERING FACILITIES THE PARTNERS WILL BUILD A NINETY FIVE MILE PIPELINE FROM A PLATFORM IN MAIN PASS BLOCK TWO HUNDRED FIFTY TWO TO A CONNECTING POINT WITH ANOTHER COMPANY'S LINE IN SOUTH PASS BLOCK FIFTY FIVE LEVIATHAN AND TENNECO GAS ALSO PLAN TO BUILD A SIX MILE PIPELINE FROM VIOSCA KNOLL BLOCK EIGHT HUNDRED SEVENTEEN TO A CONNECTING POINT WITH A PLATFORM IN MAIN PASS BLOCK TWO HUNDRED EIGHTY NINE THE SYSTEM WILL BE ABLE TO TRANSPORT MORE THAN FOUR HUNDRED MILLION CUBIC FEET OF GAS A DAY PIPELINE INSTALLATION IS EXPECTED TO START DURING THE SUMMER WITH INITIAL DELIVERIES TO BEGIN BY THE FOURTH QUARTER LEVIATHAN GAS IS A PARTNERSHIP FORMED TO BUY OWN AND MANAGE OFFSHORE NATURAL GAS PIPELINE SYSTEMS AND RELATED ASSETS NEW VALLEY CORPORATION SAID IT WILL AMEND ITS REORGANIZATION PLAN TO ENSURE THAT ALL SECURED AND UNSECURED CREDITORS RECEIVE ONE HUNDRED PERCENT OF THEIR ALLOWED CLAIMS THE AMENDMENT WILL BE FILED IN U. S. BANKRUPTCY COURT IN NEWARK N. J. AS PART OF NEW VALLEY'S PROCEEDINGS UNDER CHAPTER ELEVEN OF THE FEDERAL BANKRUPTCY CODE THE ORIGINAL PLAN FILED NOVEMBER TWENTY FOURTH HAD PROPOSED RECOVERIES OF AS LOW AS FIFTY ONE PERCENT FOR SOME CREDITOR CLAIMS NEW VALLEY THE PARENT OF WESTERN UNION FINANCIAL SERVICE INCORPORATED SAID THE AMENDMENT WAS AIMED AT DISGRUNTLED CREDITORS WHO HAD OPPOSED THE ORIGINAL PLAN QUOTE WE WANT TO GET THE DEAL DONE AND COMPLETE THE REORGANIZATION QUOTE SAID A NEW VALLEY SPOKESMAN WE BELIEVE THIS IS THE WAY WE CAN DO IT NEW VALLEY SAID THE AMENDED PLAN WILL REQUIRE AN ADDITIONAL TWENTY FIVE MILLION DOLLARS IN CASH AS PART OF THE AMENDED PLAN NEW VALLEY SAID IT WILL ASK THE COURT FOR PERMISSION TO FORGO POST PETITION INTEREST PAYMENTS TO UNSECURED CREDITORS IN ADDITION NEW VALLEY SAID IT WILL REQUEST A POSTPONEMENT OF A COURT HEARING SCHEDULED JANUARY TWENTY EIGHTH TO CONSIDER THE PLAN DUE TO THE NEW FILING TIME WARNER INCORPORATED IN A MOVE AIMED AT KEEPING ITS BIG NEW INVESTOR SEAGRAM COMPANY AT BAY REINSTITUTED A POISON PILL PROVISION THAT EFFECTIVELY LIMITS AN OUTSIDE INVESTOR'S OWNERSHIP TO FIFTEEN PERCENT OF TIME WARNER'S STOCK THE MOVE APPROVED AT A BOARD MEETING COMES JUST A DAY AFTER SEAGRAM BECAME TIME WARNER'S LARGEST SHARE HOLDER RAISING ITS STAKE TO ELEVEN POINT SEVEN PERCENT FROM TEN POINT FOUR PERCENT THE CANADIAN SPIRITS GIANT WHICH MADE AN INITIAL FIVE POINT SEVEN PERCENT INVESTMENT IN TIME WARNER IN MAY HAS SAID IT INTENDS TO BUY AS MUCH AS FIFTEEN PERCENT THROUGH OPEN MARKET PURCHASES SEAGRAM HAS BEEN ADDING TO ITS STAKE SINCE THEN ITS TOTAL INVESTMENT IS VALUED AT ABOUT ONE POINT SEVEN SIX BILLION DOLLARS MONTREAL BASED SEAGRAM CRITICIZED THE MOVE BY TIME WARNER THE NEW YORK BASED ENTERTAINMENT CABLE AND PUBLISHING CONGLOMERATE QUOTE WE BELIEVE THAT SUCH PLANS AREN'T IN THE BEST INTERESTS OF PUBLIC SHAREHOLDERS QUOTE AND QUOTE CAN INTERFERE WITH SHAREHOLDER CHOICE AND ADVERSELY AFFECT SHAREHOLDER VALUES QUOTE THE COMPANY SAID THE PILL MAKES IT PROHIBITIVELY EXPENSIVE FOR A HOSTILE ACQUIRER TO TAKE OVER TIME WARNER THOUGH SEAGRAM SAID YESTERDAY IT DOESN'T PLAN TO EXCEED FIFTEEN PERCENT PEOPLE CLOSE TO SEAGRAM SAID IT VIEWS THE TIME WARNER ACTION AS ANTAGONISTIC TIME WARNER SHOULD BE MAKING AN EFFORT TO EMBRACE EDGAR BRONFMAN JUNIOR SEAGRAM'S PRESIDENT THESE PEOPLE CONTEND BUT TIME WARNER HAS THE SUPPORT OF A NUMBER OF ITS OTHER SHAREHOLDERS WHO ARE CONCERNED THAT SEAGRAM MIGHT TRY TO GRAB CONTROL WITHOUT PAYING A PREMIUM FOR THEIR SHARES YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TIME WARNER SHARES CLOSED AT FORTY DOLLARS UP EIGHTY SEVEN POINT FIVE CENTS JESSICA REIF AN ANALYST AT OPPENHEIMER AND COMPANY SAID THE MARKET'S REACTION SHOWS HOLDERS VIEW THE POISON PILL MOVE AS A POSITIVE ONE THAT WILL PROTECT SEAGRAM FROM GAINING CREEPING CONTROL OVER TIME WARNER WHILE LARGE INSTITUTIONAL INVESTORS ARE TYPICALLY OPPOSED TO POISON PILLS IN TIME WARNER'S CASE SOME OF THE COMPANY'S LARGEST SHAREHOLDERS INCLUDING CAPITAL GROUP INCORPORATED WITH AN ELEVEN PERCENT STAKE ENDORSED THE PLAN A NUMBER OF LARGE SHAREHOLDERS CITED THE TISCH FAMILY'S INVESTMENT IN C. B. S. INCORPORATED IN NINETEEN EIGHTY SIX WHEN LAURENCE TISCH LOEWS CORPORATION CHAIRMAN OBTAINED DE FACTO CONTROL OF THE BROADCASTER BY BUYING TWENTY FOUR POINT NINE PERCENT OF ITS STOCK IN THE OPEN MARKET THEN BECAME CHAIRMAN OF C. B. S. WITH THE BOARD'S APPROVAL MARIO GABELLI WHOSE GABELLI FUNDS OWN SHARES IN TIME WARNER AND SEAGRAM SAID THAT NORMALLY HE WOULD PHILOSOPHICALLY BE AGAINST A POISON PILL IN THE TIME WARNER CASE HOWEVER HE SAID SEAGRAM'S MR. BRONFMAN COULD MARCH UP TO TWENTY FIVE PERCENT WITHOUT ANYONE KNOWING WHERE HE WAS GOING AND SHAREHOLDERS COULD LOSE THE CHANCE OF A PREMIUM MR. GABELLI SAID HE BELIEVES MR. BRONFMAN HAS SHOWN ONLY THE FIRST CARD OF A FIVE CARD DECK RICHARD KOPPES GENERAL COUNSEL AT THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM A BIG TIME WARNER HOLDER SAID WE AREN'T CONCERNED ABOUT THE PILL HE SAID THAT GERALD LEVIN TIME WARNER'S CHAIRMAN AND HIS MANAGEMENT TEAM QUOTE HAVE DONE A GOOD JOB OVER THE LAST TWO YEARS QUOTE BOOSTING THE STOCK PRICE FROM ABOUT TWENTY NINE DOLLARS A SHARE A YEAR AGO TIME WARNER'S MOVE IS A WAY OF PREVENTING SEAGRAM FROM MOVING FROM FIFTEEN PERCENT TO TWENTY FIVE PERCENT AND GAINING EFFECTIVE CONTROL AS IN THE C. B. S. TAKEOVER CONTENDS LISBETH R. BARRON OF S. G. WARBURG AND COMPANY BUT ANOTHER WALL STREET EXECUTIVE SAID THE POISON PILL PREVENTS ANYONE FROM ISSUING A GOOD SECURITY FOR TIME AND ELIMINATES NINETY PERCENT OF THE POSSIBILITY OF GETTING A PREMIUM FOR THE STOCK TIME WARNER HAS BEEN SAYING FOR THE PAST YEAR THAT IT WOULDN'T ADOPT A PILL BUT IN THE WAKE OF THE TAKEOVER BATTLE FOR RIVAL ENTERTAINMENT CONCERN PARAMOUNT COMMUNICATIONS INCORPORATED IT HAS CHANGED ITS TUNE WHILE IT DROPPED A SIMILAR POISON PILL OR SHAREHOLDER RIGHTS PLAN THREE YEARS AGO THE COMPANY SAID IT DECIDED TO ADOPT A NEW ONE AFTER CONCERNS WERE RAISED BY SEVERAL INSTITUTIONAL INVESTORS AND TIME WARNER'S STRATEGIC PARTNERS THAT THE COMPANY MIGHT BE VULNERABLE TO ABUSIVE TAKEOVER TACTICS INCLUDING ACQUISITION OF CONTROL WITHOUT PAYING ALL SHAREHOLDERS A FAIR PREMIUM UNDER TERMS OF THE PLAN TIME WARNER WOULD ISSUE ONE PREFERRED STOCK PURCHASE RIGHT FOR EACH TIME WARNER COMMON SHARE OUTSTANDING AS OF YESTERDAY OR ISSUED THEREAFTER UNTIL THE RIGHTS BECOME EXERCISABLE EACH RIGHT WOULD ENTITLE THE HOLDER TO BUY ONE ONE THOUSANDTH OF A SHARE OF PREFERRED STOCK AT ONE HUNDRED FIFTY DOLLARS IF ANY GROUP ACQUIRES MORE THAN FIFTEEN PERCENT OF TIME WARNER IN OTHER THAN A QUALIFYING TENDER OFFER TIME WARNER SAID THE RIGHTS OFFERING DOESN'T PRECLUDE A BONA FIDE ALL CASH OFFER FOR TIME WARNER'S STOCK WHICH TREATS ALL SHAREHOLDERS EQUALLY OF COURSE SUCH AN OFFER WOULD BE PROHIBITIVELY EXPENSIVE FOR ALL BUT A FEW COMPANIES QUOTE GIVEN THE SIZE OF ITS MARKET CAPITALIZATION AND THE AMOUNT OF LEVERAGE IT'S HIGHLY UNLIKELY THAT TIME WARNER WOULD BE THE SUBJECT OF AN OUTRIGHT TAKEOVER QUOTE MS. BARRON SAID TIME WARNER HAS ABOUT SIXTEEN BILLION DOLLARS IN DEBT AND THREE HUNDRED SEVENTY FIVE MILLION SHARES OUTSTANDING MS. BARRON CALCULATES THAT BUYING TIME WARNER INCLUDING STAKES HELD BY ITS STRATEGIC INVESTORS WOULD COST TWENTY BILLION DOLLARS PLUS THE ASSUMPTION OF TIME WARNER DEBT TIME WARNER SAID THE PILL WOULDN'T PRECLUDE IT FROM A FRIENDLY MERGER TIME WARNER OFFICIALS HAVE PRIVATELY INDICATED THAT THE COMPANY MAY ONE DAY CONSIDER A FRIENDLY MERGER WITH U. S. WEST INCORPORATED LAST MAY THE DENVER BASED REGIONAL TELEPHONE COMPANY BOUGHT A TWENTY FIVE POINT FIVE PERCENT STAKE IN TIME WARNER ENTERTAINMENT FOR TWO POINT FIVE BILLION DOLLARS THAT UNIT WHICH INCLUDES TIME WARNER'S MOVIE AND CABLE OPERATIONS ALSO IS ELEVEN POINT TWO PERCENT OWNED BY TWO JAPANESE CONCERNS ITOCHU CORPORATION AND TOSHIBA CORPORATION JAY W. CHAI EXECUTIVE VICE PRESIDENT OF ITOCHU SAID THAT COMPANY ALSO SUPPORTS THE PILL DECISION TOSHIBA COULDN'T BE REACHED U. S. WEST DECLINED TO DISCUSS WHETHER IT HAD PUSHED TIME WARNER TO ADOPT THE POISON PILL TO PROTECT ITS OWN INTERESTS OR WHETHER IT MIGHT CONSIDER A MERGER WITH TIME WARNER IN A STATEMENT U. S. WEST SAID THE TIME WARNER MOVES ADDRESS OUR CONCERNS AND WE SUPPORT THE ACTION SOME ON WALL STREET SPECULATED THAT IF SEAGRAM WANTS TO BOOST ITS STAKE BEYOND FIFTEEN PERCENT IT COULD MOUNT A LEGAL CHALLENGE TO THE POISON PILL BUT PEOPLE CLOSE TO THE COMPANY SAID SUCH A LEGAL CHALLENGE ISN'T CURRENTLY UNDER CONSIDERATION SEAGRAM SAID YESTERDAY THAT TIME WARNER MANAGEMENT HAS WELCOMED ITS INVESTMENT AND MR. LEVIN TIME WARNER'S CHAIRMAN SAID IN THE COMPANY'S STATEMENT THAT WE ARE APPRECIATIVE THAT SEAGRAM'S INVESTMENT IS AN AFFIRMATION OF OUR STRATEGIC DIRECTION AND PERFORMANCE BUT PEOPLE CLOSE TO TIME WARNER SAY MR. LEVIN HAS BEEN SUSPICIOUS SINCE SEAGRAM MADE THE INITIAL INVESTMENT WITHOUT ALERTING TIME WARNER AND IS CONCERNED ABOUT PROTECTING HIS MANAGEMENT MR. BRONFMAN WAS ADVISED BY INVESTMENT BANKER ALLEN AND COMPANY A LONGTIME FORCE IN THE ENTERTAINMENT INDUSTRY CURRENTLY ALLEN IS ADVISING Q. V. C. NETWORK INCORPORATED IN ITS HOSTILE BID FOR PARAMOUNT SEAGRAM ALSO WAS ADVISED BY MICHAEL OVITZ CHAIRMAN OF HOLLYWOOD'S CREATIVE ARTISTS AGENCY MANY IN HOLLYWOOD SPECULATE THAT MR. BRONFMAN AND HIS ADVISERS ULTIMATELY AIM TO SEEK BOARD REPRESENTATION OR A VOICE IN MANAGEMENT MR. OVITZ AND ALLEN DECLINED TO COMMENT BOTH MESSRS OVITZ AND BRONFMAN HAVE MET SEPARATELY WITH MR. LEVIN TO REASSURE HIM THAT THEIR INTENTIONS ARE FRIENDLY BUT TIME WARNER HAS REMAINED COOL TO THOSE OVERTURES AND WITH THE POISON PILL THEY HAVE NOW DRAWN A LINE IN THE SAND SAID ONE WALL STREET EXECUTIVE JOHNNIE L. ROBERTS CONTRIBUTED TO THIS ARTICLE WHEN BOBBY RAY INMAN WENT HOME TO TEXAS A DECADE AGO REPORTERS IN AUSTIN PUT ON A SHOW IN WHICH THE CAST SANG QUOTE BOBBY RAY SUPERSTAR SLASH ARE YOU THE MESSIAH THAT THEY SAY YOU ARE QUOTE AFTER THE SHOW ADMIRAL INMAN ASKED FOR THE CROWN WORN BY THE BOBBY RAY CHARACTER TODAY MANY IN WASHINGTON ARE WEARING RED FACES AND WONDERING HOW SOMEONE WHO APPEARED BIZARRE AS ONE SENATOR PUT IT IN A TELEVISED NEWS CONFERENCE COULD HAVE COME SO CLOSE TO BECOMING DEFENSE SECRETARY OVERSEEING THE WORLD'S MOST POWERFUL MILITARY ARSENAL THE KEY TO ADMIRAL INMAN'S RISE AND TO HIS STARTLING FALL LIES IN HIS REPUTATION IN WASHINGTON ADMIRAL INMAN'S RENOWN MADE HIM LARGER THAN LIFE EXEMPTING HIM FROM THE USUAL SCRUTINY BUT WHEN THAT CAREFULLY BURNISHED REPUTATION BEGAN TO GET SMUDGED EN ROUTE TO A JOB THAT WOULD HAVE CAPPED OFF AN ALREADY DISTINGUISHED STRING OF GOVERNMENT POSTS ADMIRAL INMAN EXITED VIA A PERFORMANCE EARLIER THIS WEEK THAT EVEN HE NOW CONCEDES WAS ODD HE SHOWED HAIR TRIGGER SENSITIVITY TO EVEN THE SMALLEST SLIGHTS AND ATTACKED HIS CRITICS WITH THE SAME SORT OF UNSUBSTANTIATED CHARGES THAT HE ACCUSED THEM OF USING AGAINST HIM IF ADMIRAL INMAN PUT TOO MUCH STOCK IN HIS REPUTATION SO DID THE WASHINGTON ESTABLISHMENT HIS AURA OF BRILLIANCE DAZZLED THE WHITE HOUSE MEMBERS OF CONGRESS AND THE PRESS WHICH FAIRLY GUSHED OVER HIS NOMINATION DEMOCRAT SENATOR JOSEPH BIDEN OF DELAWARE CALLED HIM THE MOST QUALITY GUY IN THE FEDERAL GOVERNMENT THAT ADMIRAL INMAN WENT SO FAR TOWARD CONFIRMATION WITH SO LITTLE SCRUTINY RAISES QUESTIONS ABOUT HOW PEOPLE ADVANCE IN WASHINGTON AND ABOUT WHETHER THE POLITICAL INSIDERS WHO WERE SO QUICK TO BLESS HIS NOMINATION REALLY KNEW HIM OR JUST HIS REPUTATION LEFT BEWILDERED ARE SUPPORTERS SUCH AS MISSISSIPPI SENATOR TRENT LOTT I GAVE IT A RINGING ENDORSEMENT THE REPUBLICAN SENATOR SAID OF ADMIRAL INMAN'S NOMINATION NOW I AM EMBARRASSED THAT I JOINED THE CHORUS THAT SAID THIS IS THE MAN WERE WE SUPPOSED TO KISS HIS RING QUOTE BUT IF THE INMAN TALE EXPOSES WASHINGTON'S SUSCEPTIBILITY TO THE BLINDING POWER OF REPUTATION IT ALSO HIGHLIGHTS A VULNERABILITY IN THE CLINTON ADMINISTRATION NAMELY ITS TENDENCY TO OVERVALUE I. Q. AND CREDENTIALS AND UNDERVALUE STAMINA AND COMMON SENSE IN ADMIRAL INMAN THE PRESIDENT HAD A MAN WITH A STERLING REPUTATION AND BIPARTISAN SUPPORT THE INGREDIENTS FOR A QUICK POLITICAL FIX AT A TIME WHEN MR. CLINTON'S FOREIGN POLICY TEAM WAS WOBBLING EVEN SAM NUNN CHAIRMAN OF THE SENATE ARMED SERVICES COMMITTEE AND CRITIC OF MR. CLINTON ON A VARIETY OF MILITARY QUESTIONS ISSUED A BLESSING IMMEDIATELY AFTER THE PRESIDENT NAMED THE RETIRED NAVAL OFFICER THE CHOICE ALSO SHOWS THE CONTINUING CLOUT OF MR. CLINTON'S OLD FRIENDS IT WAS STROBE TALBOTT THE PRESIDENT'S OXFORD HOUSEMATE WHO FIRST URGED MR. CLINTON TO PICK ADMIRAL INMAN TOUTING THE INTELLIGENCE EXPERT AT A LATE NOVEMBER MEETING ALSO ATTENDED BY CHIEF OF STAFF THOMAS MCLARTY FORMER JOINT CHIEFS OF STAFF CHAIRMAN WILLIAM CROWE AND VICE PRESIDENT AL GORE WHO ALSO VOICED SUPPORT FOR MR. INMAN ADMIRAL CROWE SUGGESTED A FEW BUSINESSMEN SAYS ONE PERSON FAMILIAR WITH THE MEETING BUT THERE WASN'T ANY GREAT INTEREST BECAUSE STROBE HAD DONE SUCH A GOOD JOB OF SELLING BOBBY ULTIMATELY IT WAS PRESIDENT CLINTON'S CONSIDERABLE PERSUASIVE POWERS PLUS SOME NUDGING FROM SECRETARY OF STATE WARREN CHRISTOPHER THAT PERSUADED A RELUCTANT ADMIRAL INMAN TO TAKE THE JOB AND MR. TALBOTT RECENTLY NOMINATED TO BE DEPUTY SECRETARY OF STATE TALKED TO MR. INMAN ABOUT HOW THE REVAMPED NATIONAL SECURITY TEAM WOULD WORK MR. TALBOTT YESTERDAY DECLINED TO DISCUSS THE SITUATION YET EARLY IN THE PROCESS ADMIRAL INMAN INDICATED A FUNDAMENTAL AMBIVALENCE ABOUT TAKING THE JOB HE TOLD THE WHITE HOUSE THAT HE ONLY WANTED TO BE A PART TIME WASHINGTONIAN HE SAID HE WOULD TAKE A CONDO IN WASHINGTON BUT KEEP HIS HOMES IN TEXAS AND COLORADO SPENDING MANY WEEKENDS THERE THE ADMINISTRATION EVIDENTLY MISSED THE SIGNAL WHEN HE LEARNED TWO WEEKS AGO FROM THREE DIFFERENT SOURCES THAT HIS CONFIRMATION HEARINGS WOULDN'T BE A CORONATION MR. INMAN WAS CRUSHED HE FEARED SOME REPUBLICAN SENATORS WANTED TO ROUGH ME UP A LITTLE DIRTY ME UP A BIT HE SAID IN AN INTERVIEW YESTERDAY TAKING A HINT IT APPEARED FROM NEW YORK TIMES COLUMNIST WILLIAM SAFIRE ADMIRAL INMAN FELT THE LAWMAKERS MIGHT PORTRAY THE FORMER DEPUTY DIRECTOR OF CENTRAL INTELLIGENCE UNDER PRESIDENT REAGAN AS SOMEONE WHO LEAKED INFORMATION TO THE PRESS AND HAD UNDERCUT HIS BOSS WILLIAM CASEY BUT MOST OF ALL THE SAGA OF BOBBY INMAN'S CAREER IS A STORY OF HOW A REPUTATION CAN BE BUILT IN WASHINGTON THROUGH ADROIT HANDLING OF MEMBERS OF CONGRESS AND THE MEDIA AMONG THEM MR. TALBOTT WHO WAS A TIME MAGAZINE COLUMNIST BEFORE JOINING THE STATE DEPARTMENT AND WHO KNEW MR. INMAN FROM THOSE DAYS AND FROM MEETINGS AT THE ASPEN INSTITUTE A FOREIGN POLICY THINK TANK WASHINGTON AFTER ALL IS A CITY THAT TURNS ON REPUTATION WHILE POWER IN OTHER PARTS OF THE COUNTRY MIGHT BE MEASURED BY WEALTH LINEAGE OR THE SIZE OF CORPORATE COFFERS THE NATION'S CAPITAL TENDS TO MEASURE PEOPLE BY PERCEPTION TO BE SEEN AS BRIGHT OR POWERFUL IS TO A DEGREE TO BE BRIGHT AND POWERFUL THAT IS PARTLY BECAUSE WASHINGTON RUNS ON ANOTHER INTANGIBLE INFORMATION AND AS HEAD OF THE NATIONAL SECURITY AGENCY UNDER PRESIDENT CARTER THE NATION'S GLOBAL ELECTRONIC EAVESDROPPING AGENCY MR. INMAN POSSESSED AN INSIDER'S VIEW OF THE WORLD IN THE COINAGE OF WASHINGTON HE WAS RICH IN THE NINETEEN SEVENTIES AND NINETEEN EIGHTIES ADMIRAL INMAN MOVED FROM ANONYMITY TO BUILD A REPUTATION IN WASHINGTON THAT WAS ALMOST UNPARALLELED AFTER DECADES OF QUIETLY LABORING IN MILITARY INTELLIGENCE HE BECAME THE INTELLIGENCE COMMUNITY'S LIAISON WITH BOTH CONGRESS AND THE WASHINGTON MEDIA JOHN F. LEHMAN JUNIOR PRESIDENT REAGAN'S NAVY SECRETARY RECALLS WATCHING HIM BUILD CONFIDANTS ON BOTH SIDES OF THE AISLE IN CONGRESS HE WAS ALWAYS HONEST SO PEOPLE CONFIDED IN HIM SAYS MR. LEHMAN IT ENABLED HIM TO PUT TOGETHER FULLER PICTURES THAN ANYBODY ELSE WHETHER IT WAS WASHINGTON INTRIGUES OR KREMLIN INTRIGUES WHEN I WAS IN GOVERNMENT I TALKED TO HIM A LOT MAINLY TO GET ADVICE QUOTE THE ADMIRAL'S ADVICE OFTEN WENT INTO POLITICAL MATTERS FAR BEYOND DEFENSE OR INTELLIGENCE RELATED ISSUES HE WAS CONSTANTLY BUZZING AROUND LIKE A HONEYBEE PIECING TOGETHER PICTURES OF WHAT WAS GOING ON ADDS MR. LEHMAN THE REASON INMAN HAD SO MUCH STAYING POWER WITH SO MANY DIFFERENT PEOPLE IS THAT PEOPLE OVER TIME FOUND HE GENERALLY CAME UP WITH THE RIGHT ANSWERS AND HE WAS NOT LOATH TO SHARE IT CONGRESSIONAL OVERSIGHT OF THE INTELLIGENCE COMMUNITY LED TO SOME LEAKS TO PLUG THEM OR AT LEAST TO LIMIT THE DAMAGE THEY CAUSED MR. INMAN WAS ASSIGNED TO TALK TO REPORTERS AND THEIR EDITORS AMONG THE PEOPLE MR. INMAN CAME TO KNOW WERE SOME OF WASHINGTON'S BEST KNOWN REPORTERS SUCH AS THE WASHINGTON POST'S BOB WOODWARD AND FREE LANCE INVESTIGATOR SEYMOUR HERSH INDEED ADMIRAL INMAN HAS BEEN HELPFUL TO REPORTERS FOR THE WALL STREET JOURNAL TOO BEYOND THAT MANY WASHINGTON REPORTERS CAN REMEMBER ENCOUNTERS WITH MR. INMAN IN WHICH HE WAS HELPFUL AND CANDID VOLUNTEERING HIS HOME TELEPHONE NUMBER IF ANY FURTHER INFORMATION WAS NEEDED IT WAS THE JOURNALISTIC EQUIVALENT OF A DREAM DATE MR. INMAN WAS SEEMINGLY TIRELESS IN HIS CULTIVATION OF CAPITOL HILL ONCE WHEN HE WAS TESTIFYING BEFORE REPRESENTATIVE JOSEPH ADDABBO THE NEW YORK DEMOCRAT INTERRUPTED TO SAY HE DIDN'T UNDERSTAND THE INTELLIGENCE GIBBERISH THAT MR. INMAN WAS USING MR. INMAN THEN TOOK AN HOUR TO PAINSTAKINGLY EXPLAIN HIS POINT AFTER HE FINISHED REPRESENTATIVE ADDABBO TOLD HIS DEFENSE APPROPRIATIONS SUBCOMMITTEE THAT MR. INMAN COULD HAVE ANYTHING HE NEEDED MR. INMAN'S CRITICS MOST OF WHOM DIDN'T SURFACE UNTIL AFTER HIS RECENT IMPLOSION TAKE A LESS BENIGN VIEW OF MR. INMAN'S RISE ANGELO CODEVILLA A FORMER SENATE AIDE AND CURRENTLY A HOOVER INSTITUTION FELLOW SAYS MR. INMAN'S TACTIC WAS TO FLATTER MEMBERS OF CONGRESS AND LET THEM IN ON SECRETS INMAN'S FLATTERY IS STRAIGHTFORWARD FEW COULD UNDERSTAND THIS BUT YOU SUCH WORDS AND A STRING OF TIPS WERE ENOUGH TO CONVINCE MOST OF INMAN'S CONTACTS LIBERAL AND CONSERVATIVE THAT THEY WERE FELLOW GENIUSES ANOTHER FOE WILLIAM WISECARVER A FORMER COUNSEL TO THE SENATE ARMED SERVICES COMMITTEE SAYS INMAN IS A PERFECT EXAMPLE OF WHAT WE'VE BEEN SEEING IN WASHINGTON PEOPLE WHO MOVE UP THE LADDER ON THE BACKS OF OTHERS AND THEN THEY GET TO THE TOP OF THE LADDER AND THERE'S NO ONE ELSE TO BLAME BUT THOSE VOICES WEREN'T HEARD ON DECEMBER SIXTEENTH WHEN MR. INMAN WAS NOMINATED TO BE DEFENSE SECRETARY INDEED ASIDE FROM G. O. P. REPRESENTATIVE JOHN KASICH OF OHIO WHO WORRIED ALOUD THAT MR. INMAN WAS A LEAKER AND A MANIPULATOR THE NOMINATION WAS GREETED WITH GLOWING REVIEWS SENATOR NUNN ALL BUT CONFIRMED MR. INMAN THE DAY OF THE ANNOUNCEMENT YESTERDAY SENATOR NUNN DECLINED TO COMMENT FROM THERE THE SPIN CYCLE WENT INTO HIGH GEAR REPUBLICAN SENATORS JOHN MCCAIN OF ARIZONA AND WILLIAM COHEN OF MAINE BOTH CALLED HIM QUOTE BRILLIANT QUOTE AS DID MUCH OF THE REST OF POLITICAL WASHINGTON DEMOCRATIC SENATOR CARL LEVIN OF MICHIGAN AND FORMER DEFENSE SECRETARY DICK CHENEY PRONOUNCED THE CHOICE EXCELLENT REPORTERS REACHED EVEN HIGHER FOR NEW SUPERLATIVES A. B. C. WHITE HOUSE CORRESPONDENT BRIT HUME FOR EXAMPLE NOTED MR. INMAN'S GLITTERING MILITARY CREDENTIALS AMID THE HOSANNAS ONE DISSENTING VOICE SPOKE OUT WHEN HE WAS INTRODUCED IN THE ROSE GARDEN VIRTUALLY THE FIRST WORDS OUT OF ADMIRAL INMAN'S MOUTH WERE I AM AN IMPERFECT HUMAN BEING HE WENT ON TO DISCUSS HIS AMBIVALENCE ABOUT THE JOB IN THE FOLLOWING WEEKS HIS FEET GREW COLDER AFTER A LIFETIME OF OPERATING BEHIND THE SCENES AND CONTROLLING THE FLOW OF INFORMATION THE NOMINEE FOUND HIMSELF THE FOCUS OF MEDIA REPORTS BEYOND HIS CONTROL AND THE SUBJECT OF RUMORS ABOUT HIS BUSINESS DEALINGS AND PERSONAL LIFE THE EXPERIENCE ONLY CONFIRMED WHAT HIS GUT AND HIS WIFE WERE TELLING HIM THAT HE REALLY DIDN'T WANT THE JOB WHAT'S MORE ADMIRAL INMAN WENT FROM ONCE SITTING ATOP THE WORLD'S MOST SOPHISTICATED INTELLIGENCE APPARATUS TO WAITING IN AUSTIN AND OFTEN HEARING DISTURBING BUT NOT NECESSARILY ACCURATE INTIMATIONS OF TROUBLE IN WASHINGTON WHITE HOUSE AND PENTAGON AIDES KNOWING THAT ADMIRAL INMAN HAD BEEN SELECTED PARTLY BECAUSE OF HIS EXCELLENT RELATIONS WITH CONGRESS PLANNED TO DEFER TO HIM ON HANDLING CAPITOL HILL BUT HE FAILED TO REACH OUT TO OLD FRIENDS IN THE SENATE SUCH AS SENATOR MCCAIN WHOSE FATHER ONCE HAD BEEN ADMIRAL INMAN'S COMMANDER THE NOMINEE WAS PAINED AND SURPRISED BY THE FEW CRITICAL COMMENTS WRITTEN ABOUT HIM MAINLY BY MR. SAFIRE OF THE TIMES I HAVE NO RECOLLECTION OF HIM EVER BEING ATTACKED BY ANYONE SAYS SENATOR MCCAIN THAT'S THE TREATMENT HE ALWAYS GOT BEFORE ADMIRAL INMAN SAYS THAT HE HAD BEEN CRITICIZED BEFORE MOST NOTABLY BY QUOTE SAFIRE AND HIS CLIQUE OF SUPPORTERS QUOTE BUT THIS TIME HE CONCLUDED HE WOULD FACE A DAILY DIET OF THIS HE TOLD THE WHITE HOUSE ON JANUARY SIXTH THAT HE WAS PULLING OUT BUT IN DEFERENCE TO THE PRESIDENT'S LOSS OF HIS MOTHER AND TRAVELS IN EUROPE HELD OFF MAKING IT PUBLIC UNTIL THIS WEEK EVEN ADMIRAL INMAN CONCEDES THAT HIS PERFORMANCE THIS WEEK WAS STRANGE WOULD I DO IT A LOT DIFFERENTLY HE ASKS YES BUT IT'S BEEN DONE HE SAYS HIS MAIN REGRET IS THAT HE DIDN'T SAY EARLIER THAT HE WASN'T TRULY INTERESTED I LET TWO THINGS GET CONFUSED HE CONCLUDES I RESPONDED TO THE PRESIDENT SAYING HE NEEDS ME AND I FORGOT HOW MUCH I'VE CHANGED IN THE LAST TEN YEARS QUOTE OTHERS ARE LESS RESTRAINED SENATE MINORITY LEADER BOB DOLE OF KANSAS WHOM ADMIRAL INMAN CITED AS A REASON FOR BOWING OUT SAYS YOU KIND OF WONDER HOW THEY PICKED THIS PERSON SEEMS TO ME THAT MAYBE THE PRESIDENT OR SOMEBODY WHO RECOMMENDED HIM TO THE PRESIDENT SHOULD HAVE HAD A LITTLE CLOSER LOOK BUT EVEN MR. DOLE HAD GREETED THE NOMINATION BY SAYING ADMIRAL INMAN WAS A GOOD SELECTION MANY FRIENDS WERE LEFT BEWILDERED RETIRED ARMY MAJOR GENERAL EDWARD ATKESON WHO HAS KNOWN MR. INMAN SINCE THEY ROOMED TOGETHER AS YOUNG OFFICERS IN EUROPE IN NINETEEN FIFTY THREE SAYS IT CERTAINLY WASN'T THE BOBBY INMAN I'D SEEN BEFORE IT WAS A NEW PERSON HE SHOT HIMSELF IN THE FOOT AT THE WHITE HOUSE AIDES STAND BY ADMIRAL INMAN EVEN THOUGH STUNNED BY HIS PUBLIC MELTDOWN QUOTE THIS MAN SERVED HIS COUNTRY FOR THIRTY YEARS AND DOESN'T DESERVE TO BE JUDGED ON ONE PRESS CONFERENCE QUOTE SAYS WHITE HOUSE COUNSELOR DAVID GERGEN CHIEF OF STAFF MCLARTY ECHOES THAT VIEW SAYING HE IS A PERSON OF DISTINCTION HE SERVED FOUR OR FIVE PRESIDENTS AN ADMIRAL IN THE NAVY HIS RECORD REALLY SPEAKS FOR HIMSELF IN AUSTIN LIFE IS CALMING DOWN FOR ADMIRAL INMAN ONE THING I CAN SAY AS I RELAX HE SAID YESTERDAY IS THAT I CAN REST COMFORTABLY THAT NO PRESIDENT IS EVER AGAIN GOING TO ASK ME TO BE IN THE CABINET DAVID ROGERS AND JOHN J. FIALKA CONTRIBUTED TO THIS ARTICLE THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ALLIED WASTE INDUSTRIES INCORPORATED ONE HUNDRED DOLLARS OF SENIOR SUBORDINATED NOTES DUE FEBRUARY FIRST TWO THOUSAND FOUR PRICED AT PAR TO YIELD TEN POINT SEVEN FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE ISSUE NONCALLABLE FOR FIVE YEARS IS RATED SINGLE B. THREE BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE B. BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JEFFERIES AND COMPANY INCORPORATED CHASE MANHATTAN CORPORATION ONE HUNDRED FIFTY MILLION DOLLARS OF SUBORDINATED NOTES DUE JANUARY FIFTEENTH TWO THOUSAND NINE WAS PRICED AS SIX POINT FIVES AT NINETY NINE POINT OH TWO TWO TO YIELD SIX POINT SIX OH FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF EIGHTY NINE BASIS POINTS ABOVE TREASURYS RATED B. A. A. TWO BY MOODY'S AND TRIPLE B. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY DUAL DRILLING COMPANY ONE HUNDRED MILLION DOLLARS OF SENIOR SUBORDINATED NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AT PAR TO YIELD NINE POINT EIGHT SEVEN FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS AND IS RATED SINGLE B. THREE BY MOODY'S AND SINGLE B. MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED MILLION DOLLARS OF NOTES DUE FEBRUARY FIRST NINETEEN NINETY NINE PRICED AT PAR TO YIELD FIVE POINT TWO THREE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WEREPRICED AT A SPREAD OF SIXTEEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY FEDERAL HOME LOAN MORTAGE CORPORATION TWO HUNDRED MILLION DOLLARS OF DEBENTURES DUE JANUARY TWENTY SEVENTH NINETEEN NINETY SEVEN PRICED AT PAR TO YIELD FOUR POINT FIVE TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF FOURTEEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED GULF CANADA RESOURCES LIMITED THREE HUNDRED MILLION DOLLARS OF SENIOR SUBORDINATED DEBENTURES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS NINE POINT TWO FIVES AT NINETY NINE POINT THREE SIX SEVEN TO YIELD NINE POINT THREE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE DEBENTURES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLE B. TWO BY MOODY'S AND SINGLE B. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED HOUSEHOLD FINANCIAL CORPORATION TWO HUNDRED MILLION DOLLARS OF NOTES DUE FEBRUARY FIRST TWO THOUSAND NINE PRICED AT PAR TO YIELD SIX POINT FOUR FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SEVENTY FIVE BASIS POINTS ABOVE TEN YEAR TREASURYS RATED SINGLE A TWO BY MOODY'S AND SINGLE A BY S. AND P. THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY SALOMON BROTHERS INCORPORATED HOUSEHOLD FINANCIAL IS A UNIT OF HOUSEHOLD INTERNATIONAL MITCHELL ENERGY AND DEVELOPMENT CORPORATION ONE HUNDRED MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIFTEENTH NINETEEN NINETY SEVEN PRICED AT PAR TO YIELD FIVE POINT ONE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF SEVENTY FIVE BASIS POINTS ABOVE TREASURYS RATED B. A. A. THREE BY MOODY'S AND TRIPLE B. MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY ORCHARD SUPPLY HARDWARE CORPORATION ONE HUNDRED MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND TWO PRICED AT PAR TO YIELD NINE POINT THREE SEVEN FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FOUR YEARS RATED SINGLE B. TWO BY MOODY'S AND SINGLE B. BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED ORCHARD SUPPLY HARDWARE IS A UNIT OF ORCHARD SUPPLY HARDWARE STORES CORPORATION PLANTRONICS INCORPORATED EIGHTY FIVE MILLION DOLLARS OF SENIOR NOTES DUE JANUARY FIFTEENTH TWO THOUSAND ONE PRICED AT PAR TO YIELD TEN PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLE B. TWO BY MOODY'S AND SINGLE B. BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INCORPORATED R. P. SCHERER CORPORATION ONE HUNDRED MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIRST TWO THOUSAND FOUR PRICED AS SIX POINT SEVEN FIVES AT NINETY NINE POINT TWO SIX EIGHT TO YIELD SIX POINT EIGHT FIVE TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF ONE HUNDRED FIFTEEN BASIS POINTS ABOVE TREASURYS RATED B. A. ONE BY MOODY'S AND TRIPLE B. MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED R. P. SCHERER IS A UNIT OF RPS CORPORATION WHITMAN CORPORATION ONE HUNDRED MILLION DOLLARS OF DEBENTURES DUE FEBRUARY FIRST TWO THOUSAND SIX PRICED AT PAR TO YIELD SIX POINT FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF EIGHTY BASIS POINTS ABOVE TEN YEAR TREASURYS RATED B. A. A. TWO BY MOODY'S AND TRIPLE B. BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY HOST MARRIOTT CORPORATION SEVENTEEN POINT FIVE MILLION COMMON SHARES PRICED AT TWELVE DOLLARS EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION SCICLONE PHARMACEUTICALS INCORPORATED TWO MILLION COMMON SHARES PRICED AT TWENTY THREE DOLLARS AND TWENTY FIVE CENTS EACH ACCORDING TO THE COMPANY MONTGOMERY SECURITIES WAS LEAD UNDERWRITER ILLINOIS TWO HUNDRED FORTY NINE POINT SIX MILLION DOLLARS OF REFUNDING GENERAL OBLIGATION BONDS APPARENTLY WON BY A MERRILL LYNCH AND COMPANY GROUP YIELDS FOR REOFFERED BONDS RANGE FROM THREE POINT EIGHT PERCENT IN NINETEEN NINETY EIGHT TO FOUR POINT NINE FIVE PERCENT IN TWO THOUSAND EIGHT MOODY'S RATED THE BONDS DOUBLE A AND S. AND P. ASSIGNED A DOUBLE A MINUS RATING BOMBARDIER CORPORATION FOUR HUNDRED MILLION DOLLARS OF ASSET BACKED CERTIFICATES PRICED IN TWO PARTS BY UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY AND SCOTIA MCLEOD U. S. A. INCORPORATED THE CERTIFICATES WERE BACKED BY LINES OF CREDIT TO NEARLY THREE THOUSAND NINE HUNDRED U. S. DEALERS OF EQUIPMENT RANGING FROM RECREATIONAL SKI EQUIPMENT TO CONSUMER ELECTRONICS AND LAWNMOWERS THE ISSUE WAS SOLD THROUGH SPECIAL PURPOSE TRUST BOMBARDIER RECEIVABLES MASTER TRUST ONE THE THREE HUNDRED SEVENTY SIX POINT FIVE MILLION DOLLARS OF FLOATING RATE CLASS A ASSET BACKED CERTIFICATES SERIES NINETEEN NINETY FOUR TO ONE WAS PRICED TO FLOAT TWENTY BASIS POINTS ABOVE THE ONE MONTH LONDON INTERBANK OFFERED RATE THE CERTIFICATES HAVE AN AVERAGE LIFE OF THREE YEARS THE TWENTY THREE POINT FIVE MILLION DOLLARS OF FIXED RATE CLASS B. ASSET BACKED CERTIFICATES SERIES NINETEEN NINETY FOUR TO ONE WAS PRICED AS FIVE POINT TWOS AT NINETY NINE POINT EIGHT ONE TWO FIVE TO YIELD FIVE POINT THREE TWO PERCENT A SPREAD OF SEVENTY THREE BASIS POINTS ABOVE THE TREASURY'S SIX POINT EIGHT SEVEN FIVE PERCENT NOTES OF APRIL NINETEEN NINETY SEVEN THE CERTIFICATES HAVE AN AVERAGE LIFE OF THREE POINT TWO FIVE YEARS ADDITIONAL CREDIT SUPPORT WAS PROVIDED BY A SEVEN POINT SIX PERCENT SUBORDINATED SELLER'S INTEREST AND A RESERVE FUND OF SEVENTY FIVE BASIS POINTS BOMBARDIER CORPORATION IS A UNIT BOMBARDIER INCORPORATED A. B. SPINTAB SWEDEN ONE BILLION SWEDISH KRONOR OF SEVEN PERCENT EUROBONDS DUE FEBRUARY TWENTY SECOND NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED ONE POINT FIVE SEVEN FIVE VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT PAR TO YIELD SEVEN PERCENT FEES ONE POINT EIGHT SEVEN FIVE POINTS FROM FEBRUARY FIRST MORGAN STANLEY AND COMPANY INTERNATIONAL LIMITED WILL ASSUME ALL OBLIGATIONS AND RESPONSIBILITIES OF MORGAN STANLEY INTERNATIONAL BACOB OVERSEAS LIMITED BELGIUM THREE HUNDRED MILLION DANISH KRONER OF FIVE POINT SEVEN FIVE PERCENT EUROBONDS DUE MARCH ELEVENTH NINETEEN NINETY EIGHT AT ISSUE PRICE ONE HUNDRED TWO POINT ONE TWO FIVE VIA UNIBANK AT CO MANAGERS' BREAK EVEN PRICE ONE HUNDRED POINT FIVE BONDS YIELD FIVE POINT SIX ONE PERCENT GUARANTOR BACOB BANK FEES ONE POINT SIX TWO FIVE CREDIT SUISSE FINANCE GIBRALTAR LIMITED SWISS PARENT ONE HUNDRED MILLION DOLLARS OF RANGE FLOATING RATE EURONOTES DUE AUGUST NINETEEN NINETY FIVE AT ISSUE AND FIXED REOFFER PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LIMITED INTEREST PAID QUARTERLY AT THREE MONTH DOLLAR LIBOR PLUS ZERO POINT SEVEN FIVE POINT INTEREST ACCRUES ON BUSINESS DAYS DURING COUPON PERIOD WHEN THREE MONTH LIBOR EQUAL OR LESS THAN FOUR PERCENT IN THE FIRST SIX MONTHS FOUR POINT TWO FIVE PERCENT IN THE SECOND SIX MONTHS AND FIVE POINT TWO FIVE PERCENT IN THE LAST SIX MONTHS MINIMUM COUPON ZERO GUARANTOR CREDIT SUISSE FEES ZERO POINT ONE FIVE COMMONWEALTH BANK OF AUSTRALIA AUSTRALIAN AGENCY SEVENTY FIVE MILLION DOLLARS OF CORRIDOR FLOATING RATE EUROBONDS DUE FEBRUARY TWENTY SIXTH NINETEEN NINETY SIX AT ISSUE AND FIXED REOFFER PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL LIMITED INTEREST FLOATS AT ONE POINT OVER THREE MONTH LIBOR AND IS PAID ON DAYS WHEN THREE MONTH LIBOR FALLS WITHIN DEFINED RANGES OF THREE MONTH DURATION EACH RANGE ONE THREE PERCENT TO FOUR PERCENT RANGE TWO THREE PERCENT TO FOUR POINT TWO FIVE PERCENT RANGE THREE THREE PERCENT TO FOUR POINT FIVE PERCENT RANGE FOUR THREE PERCENT TO FOUR POINT SEVEN FIVE PERCENT RANGE FIVE THREE PERCENT TO FIVE PERCENT RANGE SIX THREE PERCENT TO FIVE POINT TWO FIVE PERCENT RANGE SEVEN THREE PERCENT TO FIVE POINT FIVE PERCENT RANGE EIGHT THREE PERCENT TO SIX PERCENT GUARANTOR AUSTRALIA FEES ZERO POINT ONE FIVE CREDIT FONCIER DE FRANCE FRENCH AGENCY ONE POINT FIVE BILLION SWEDISH KRONOR OF SIX POINT FIVE PERCENT EUROBONDS DUE FEBRUARY TWENTY SECOND NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED ONE POINT SIX TWO FIVE VIA SWISS BANK CORPORATION REOFFERED AT PAR TO YIELD SIX POINT FIVE PERCENT A MARGIN OF TWENTY BASIS POINTS OVER COMPARABLE SWEDISH GOVERNMENT BOND FEES ONE POINT EIGHT SEVEN FIVE D. S. L. FINANCE N. V. AMSTERDAM GERMANY TEN BILLION SPANISH PESETAS OF SEVEN POINT EIGHT SEVEN FIVE PERCENT MATADOR BONDS DUE FEBRUARY TENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT FOUR THREE FIVE VIA BANCO SANTANDER DE NEGOCIOS AND MIDLAND BANK P. L. C. MADRID BONDS PRICED TO YIELD SEVEN POINT NINE TWO PERCENT AT CO MANAGERS' BREAK EVEN PRICE NINETY NINE POINT SIX EIGHT FIVE A MARGIN OF ABOUT ELEVEN BASIS POINTS OVER COMPARABLE SPANISH GOVERNMENT BOND THE BOND'S OPEN MARKET PRICE IS NINETY NINE POINT EIGHT TO YIELD SEVEN POINT NINE ONE PERCENT A MARGIN OF TEN BASIS POINTS OVER REFERENCE BONOS GUARANTOR DEUTSCHE SIEDLUNGS UND LANDESRENTENBANK FEES ONE POINT EIGHT SEVEN FIVE EUROPEAN INVESTMENT BANK SUPRANATIONAL FOUR HUNDRED MILLION OF SIX PERCENT EUROBONDS DUE NOVEMBER TWENTY SIXTH TWO THOUSAND FOUR AT ISSUE AND FIXED REOFFER PRICE NINETY EIGHT POINT SIX THREE SIX VIA SAMUEL MONTAGU AND COMPANY BONDS PRICED TO YIELD SIX POINT ONE SEVEN PERCENT FLAT THE YIELD ON SIX POINT SEVEN FIVE PERCENT U. K. GILT OF TWO THOUSAND FOUR FEES ZERO POINT THREE TWO FIVE GENERAL ELECTRIC CAPITAL CORPORATION U. S. PARENT ONE HUNDRED MILLION DOLLARS OF CORRIDOR FLOATING RATE EURONOTES DUE FEBRUARY TWENTY SECOND NINETEEN NINETY SIX AT ISSUE AND REOFFER PRICE PAR VIA KIDDER PEABODY SECURITIES COMPANY INTEREST FLOATS AT SEVENTY FIVE BASIS POINTS OVER THE THREE MONTH DOLLAR LIBOR INTEREST PAYABLE QUARTERLY SUBJECT TO THREE MONTH LIBOR FALLING WITHIN FOLLOWING SIX MONTH RANGES RANGE ONE THREE PERCENT TO FOUR PERCENT RANGE TWO THREE PERCENT TO FOUR POINT SEVEN FIVE PERCENT RANGE THREE THREE PERCENT TO FIVE POINT FIVE PERCENT RANGE FOUR THREE PERCENT TO SIX PERCENT FEES ZERO POINT TWO KURAYA CORPORATION JAPAN ONE HUNDRED FORTY MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE ZERO POINT FIVE PERCENT NOTES DUE MARCH THIRTY FIRST NINETEEN NINETY EIGHT AT PAR VIA NOMURA BANK SWITZERLAND LIMITED EACH NOTE CONVERTIBLE FROM MARCH FIRST TO MARCH SIXTEENTH NINETEEN NINETY EIGHT AT TWO POINT FIVE PERCENT PREMIUM OVER CLOSING SHARE PRICE JANUARY TWENTY SIXTH TERMS FIXED FEES ONE POINT SIX TWO FIVE MORGAN GUARANTY TRUST COMPANY NEW YORK U. S. TWO HUNDRED MILLION DOLLARS OF RANGE FLOATING RATE EURONOTES DUE FEBRUARY TWENTY SECOND NINETEEN NINETY SIX AT ISSUE AND FIXED REOFFER PRICE PAR VIA MERRILL LYNCH INTERNATIONAL INTEREST PAID QUARTERLY AT THREE MONTH LIBOR PLUS ONE POINT PROVIDED THE THREE MONTH LIBOR FALLS WITHIN FOLLOWING RANGES THREE PERCENT TO FOUR PERCENT FOR FIRST SIX MONTHS THREE POINT TWO FIVE PERCENT TO FOUR POINT FIVE PERCENT FOR SECOND SIX MONTHS THREE POINT THREE SEVEN FIVE PERCENT TO FIVE POINT FIVE PERCENT FOR THIRD SIX MONTHS THREE POINT THREE SEVEN FIVE PERCENT TO SIX PERCENT FOR LAST SIX MONTHS FEES ZERO POINT ONE FIVE RABOBANK NEDERLAND NETHERLANDS TWO HUNDRED BILLION LIRE OF SEVEN POINT SEVEN PERCENT EUROBONDS DUE FEBRUARY TWENTY THIRD TWO THOUSAND FOUR ISSUE PRICE ONE HUNDRED ONE POINT EIGHT VIA PARIBAS CAPITAL MARKETS LIMITED AND RABOBANK NEDERLAND AT CO MANAGERS' BREAK EVEN PRICE NINETY NINE POINT EIGHT THE YIELD SEVEN POINT SEVEN THREE PERCENT FEES TWO SWEDEN SOVEREIGN TEN BILLION PORTUGUESE ESCUDOS OF EIGHT POINT THREE PERCENT EUROBONDS DUE FEBRUARY TWENTY THIRD NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED ONE POINT TWO VIA BANCO PORTUGUES DE INVESTIMENTO S. A. AT CO MANAGERS' BREAK EVEN PRICE NINETY NINE POINT SEVEN BONDS YIELD EIGHT POINT THREE EIGHT PERCENT A MARGIN OF TEN BASIS POINTS BELOW COMPARABLE NEW PORTUGUESE TREASURYS FEES ONE POINT SIX TWO FIVE THE DOLLAR RETREATED AGAINST THE MARK YESTERDAY AFTER THE BUNDESBANK AGAIN DECLINED TO CUT ITS KEY INTEREST RATES AND SENT STRONG SIGNALS IT ISN'T LIKELY TO DO SO ANY TIME SOON RECENT DOLLAR EUPHORIA ALSO EASED SHARPLY FOLLOWING RELEASE OF DISAPPOINTING WEEKLY JOBLESS NUMBERS THAT INDICATED A SLOWING OF THE U. S. ECONOMIC RECOVERY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN THREE EIGHT OH MARKS DOWN FROM ONE POINT SEVEN FOUR SIX OH MARKS LATE WEDNESDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED ELEVEN POINT FOUR OH YEN UP SLIGHTLY FROM ONE HUNDRED ELEVEN POINT THREE FIVE YEN STERLING WAS TRADING AT ONE POINT FOUR NINE SEVEN OH DOLLARS UP FROM ONE POINT FOUR NINE TWO FIVE DOLLARS ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED ELEVEN POINT TWO FIVE YEN AND AT ONE POINT SEVEN THREE SEVEN THREE MARKS YESTERDAY THE GERMAN CENTRAL BANK ANNOUNCED ITS DISCOUNT RATE WOULD REMAIN AT FIVE POINT SEVEN FIVE PERCENT WHILE ITS LOMBARD RATE WOULD HOLD AT SIX POINT SEVEN FIVE PERCENT SETTING OFF AGGRESSIVE BUYING OF THE MARK THE BANK LATER SAID IT ALSO FROZE THE RATE FOR SECURITIES REPURCHASE AGREEMENTS OR REPOS AT SIX PERCENT AT LEAST THROUGH EARLY FEBRUARY REPOS ARE THE MECHANISM USED BY THE BUNDESBANK TO NUDGE MONEY MARKET RATES UP OR DOWN ALTHOUGH BOTH DECISIONS WERE WIDELY EXPECTED TRADERS NOTED THAT SIGNS THAT THE U. S. ECONOMY MAY BE LESS ROBUST THAN THOUGHT THEN PROMPTED DOLLAR BULLS TO LIQUIDATE THEIR POSITIONS THE U. S. LABOR DEPARTMENT SAID JOBLESS CLAIMS ROSE BY TWENTY THREE THOUSAND TO THREE HUNDRED EIGHTY THOUSAND IN THE WEEK ENDED JANUARY FIFTEENTH THIS COMPARED WITH ECONOMISTS' FORECASTS OF A FOURTEEN THOUSAND DECLINE DOLLAR JITTERS WERE INCREASED BY YET A THIRD BUNDESBANK ANNOUNCEMENT THAT ITS RESERVE REQUIREMENTS FOR GERMAN BANKS WOULD BE REDUCED EFFECTIVE MARCH FIRST TO SOME ANALYSTS THAT INDICATED THE CENTRAL BANK REMAINS CONCERNED ABOUT OVERLY HIGH MONEY SUPPLY GROWTH IN THE NEAR TERM AND THUS WILL BE RELUCTANT TO CUT OFFICIAL RATES IN FEBRUARY THE DOLLAR HIT ITS INTRADAY HIGH OF ONE POINT SEVEN FIVE ONE TWO MARKS JUST BEFORE THE FIRST BUNDESBANK ANNOUNCEMENT THAT IT DECIDED AGAINST ANY CHANGE IN ITS BENCHMARK INTEREST RATES THE SUCCESSIVE BUNDESBANK ANNOUNCEMENTS AND THE U. S. ECONOMIC DATA THEN KNOCKED DOWN THE CURRENCY TO ITS LOW OF ONE POINT SEVEN THREE FOUR FIVE MARKS FOUR HOURS LATER THE BUNDESBANK SAID IT WOULD EASE RESERVE REQUIREMENTS IN PART BY UNIFYING SIGHT DEPOSITS FOR BOTH DOMESTIC AND FOREIGN INVESTORS AT FIVE PERCENT FROM A RANGE OF SIX POINT FIVE PERCENT TO TWELVE POINT ONE PERCENT THE MOVE IS EXPECTED TO HELP THE COMPETITIVENESS OF GERMAN BANKS A LONGSTANDING BUNDESBANK GOAL AND FOLLOWS A SIMILAR EASING OF RESERVE REQUIREMENTS LAST YEAR THE CENTRAL BANK SAID THE LIQUIDITY EFFECTS OF THE MOVE WOULD BE OFFSET BY A REDUCTION IN THE AMOUNTS AVAILABLE THROUGH SECURITIES REPURCHASE ARRANGEMENTS HOWEVER THE DECISION TO DEFER THE RESERVE EASING TO MARCH FIRST INDICATED TO MANY TRADERS THAT THE BANK REMAINS NERVOUS ABOUT THE EFFECT ANY ADDED LIQUIDITY WOULD HAVE ON GERMAN MONEY SUPPLY GROWTH AND THUS WILL BE LESS LIKELY TO CUT ITS INTEREST RATES QUOTE WHAT THIS MEANS IS THAT THE INTERESTRATE ENVIRONMENT ISN'T GOING TO CHANGE IN THE NEAR TERM QUOTE SAID ERIC NICKERSON SENIOR ECONOMIST AT THE BANK OF AMERICA IN SAN FRANCISCO THE FACT THAT THE U. S. JOBLESS CLAIMS NUMBERS WERE WEAKER THAN EXPECTED SORT OF LEFT PEOPLE THINKING IT WILL BE LONGER BEFORE INTEREST RATE DIFFERENTIALS BEGIN TO NARROW BETWEEN THE U. S. AND GERMANY HE SAID IT TAKES A LOT OF THE STEAM OUT OF THE DOLLAR HIGHER INTEREST RATES ARE SEEN AS A LURE FOR INVESTORS AND GENERALLY HAVE THE EFFECT OF SUPPORTING CURRENCIES ROBERT FISKE JUNIOR WHO WAS APPOINTED INDEPENDENT COUNSEL TO INVESTIGATE PRESIDENT CLINTON'S INVESTMENT IN WHITEWATER DEVELOPMENT COMPANY SAID HE WOULD TAKE TESTIMONY FROM THE PRESIDENT AND HILLARY RODHAM CLINTON UNDER OATH MR. FISKE A FORMER U. S. ATTORNEY IN NEW YORK PROMISED A QUOTE COMPLETE THOROUGH AND IMPARTIAL QUOTE PROBE OF THE WHITEWATER AFFAIR ATTORNEY GENERAL JANET RENO SAID AT A NEWS CONFERENCE THAT SHE CHOSE MR. FISKE BECAUSE HE IS AN EXCELLENT PROSECUTOR WHO IS RUGGEDLY INDEPENDENT I HAVE TALKED WITH MR. FISKE AND TOLD HIM THAT I WANT HIM TO DO EVERYTHING HE THINKS PROPER AND APPROPRIATE TO MAKE SURE THAT HE IS TRULY INDEPENDENT SHE SAID MR. FISKE PERSONALLY WROTE THE CHARTER THAT OUTLINES HIS DUTIES THE SPECIFIC LANGUAGE HE SAID AUTHORIZES ME TO INVESTIGATE WHETHER ANY INDIVIDUALS OR ENTITIES HAVE COMMITTED A VIOLATION OF ANY FEDERAL CRIMINAL LAW RELATING IN ANY WAY TO THE PRESIDENT'S OR MRS. CLINTON'S RELATIONSHIPS WITH MADISON GUARANTY SAVINGS AND LOAN ASSOCIATION A LITTLE ROCK ARKANSAS THRIFT WHITEWATER DEVELOPMENT OR CAPITAL MANAGEMENT SERVICES INCORPORATED A FAILED LITTLE ROCK INVESTMENT COMPANY THE CLINTONS WERE PARTNERS IN WHITEWATER WITH JAMES MCDOUGAL OWNER OF NOW DEFUNCT MADISON AND HIS FORMER WIFE SUSAN WHO RECEIVED A THREE HUNDRED THOUSAND DOLLAR LOAN FROM CAPITAL MANAGEMENT DAVID HALE A FORMER MUNICIPAL JUDGE WHO OWNED CAPITAL HAS CHARGED THAT THE CLINTONS AND MR. MCDOUGAL PRESSED HIM INTO MAKING THE LOAN AS A WAY OF BOLSTERING MADISON IN ADDITION THE RESOLUTION TRUST CORPORATION HAS ASKED FOR AN INVESTIGATION OF POSSIBLE DIVERSION OF FUNDS FROM MADISON TO WHITEWATER AND TO PAY CERTAIN CAMPAIGN AND OTHER DEBTS OF THEN ARKANSAS GOVERNOR CLINTON IN THE MID NINETEEN EIGHTIES MR. FISKE ALSO WILL LOOK AT THE INVOLVEMENT IN MADISON RELATED MATTERS BY ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL MR. HUBBELL WHO WAS MRS. CLINTON'S LAW PARTNER WAS HIRED BY FEDERAL REGULATORS TO SUE MADISON'S ACCOUNTANTS TO RECOUP TAXPAYER MONEY SPENT WHEN THE THRIFT FAILED THE REGULATORS LATER SAID THEY DIDN'T KNOW THE FIRM HAD A LONG RELATIONSHIP WITH MADISON THE CLINTONS' WHITEWATER PAPERS WERE KEPT BY FORMER WHITE HOUSE DEPUTY COUNSEL VINCENT FOSTER WHO COMMITTED SUICIDE MR. FISKE SAID HE WILL INVESTIGATE THE SUICIDE TO THE EXTENT IT INVOLVES WHITEWATER RELATED EVENTS LAST NIGHT MR. CLINTON SAID HE DIDN'T KNOW IN ADVANCE ABOUT THE SELECTION OF MR. FISKE AND SAID HE ABSOLUTELY WOULD COOPERATE WITH THE INVESTIGATION ASKED BY TALK SHOW HOST LARRY KING ON C. N. N. ABOUT MR. FISKE'S PLAN TO TAKE SWORN TESTIMONY FROM HIM AND HIS WIFE MR. CLINTON SAID WHATEVER THEY WANT TO DO WE WILL BE GLAD TO DO IT QUOTE THE MAIN THING I WANT TO DO IS TO JUST HAVE THAT TURNED OVER TO HIM SO WE CAN GO BACK TO WORK QUOTE HE ADDED I JUST WANT TO DO MY JOB I DON'T WANT TO BE DISTRACTED BY THIS ANY MORE I DIDN'T DO ANYTHING WRONG MR. FISKE PLANS TO OPEN AN OFFICE IN LITTLE ROCK HE ADDED THAT HE WOULD SUBMIT REPORTS TO CONGRESS ON HIS ACTIVITIES THE NEW INDEPENDENT COUNSEL ISN'T REQUIRED TO REPORT TO MS. RENO MR. FISKE WHO IS SIXTY THREE YEARS OLD WAS NAMED U. S. ATTORNEY FOR NEW YORK BY PRESIDENT FORD IN NINETEEN SEVENTY SIX AND HE WAS RETAINED BY PRESIDENT CARTER A SELF DESCRIBED LIFE LONG REGISTERED REPUBLICAN MR. FISKE SAID HE WOULD TAKE A LEAVE OF ABSENCE FROM THE LAW FIRM DAVIS POLK AND WARDELL WHERE HE IS A LITIGATION PARTNER MR. FISKE SAID HE WON'T USE THE CAREER JUSTICE DEPARTMENT PEOPLE WHO HAD BEEN INVESTIGATING THE WHITEWATER AFFAIR MS. RENO SAID SHE CALLED THOSE PROBES TO A HALT WHEN SHE ANNOUNCED LAST WEEK THAT SHE WOULD APPOINT AN INDEPENDENT COUNSEL REPRESENTATIVE JIM LEACH R. IOWA WHO HAD LONG URGED MS. RENO TO APPOINT AN INDEPENDENT COUNSEL CALLED MR. FISKE A QUALITY APPOINTMENT AN INDIVIDUAL OF APPROPRIATE BACKGROUND AND INTEGRITY SENATE MINORITY LEADER BOB DOLE R. KANSAS HAS CALLED FOR A SEPARATE CONGRESSIONAL INVESTIGATION INTO THE WHITEWATER AFFAIR MR. FISKE DISCOURAGED THAT SAYING I THINK THE HISTORY OF THESE SITUATIONS IS THAT IT IS DIFFICULT TO CONDUCT THIS KIND OF INVESTIGATION AT THE SAME TIME A CONGRESSIONAL INVESTIGATION IS GOING ON MR. FISKE SAID HE WOULD GIVE NO INTERVIEWS THAT WOULD COME AS NO SURPRISE TO SOME LAWYERS WHO PREDICTED THAT BASED ON HIS HANDLING OF THE NEWS MEDIA IN OTHER CASES HE IS LIKELY TO KEEP HIS DISTANCE FROM THE PRESS DURING HIS INVESTIGATION SAID CAREY R. DUNNE A PARTNER AT DAVIS POLK WHO HAS WORKED CLOSELY WITH MR. FISKE QUOTE HE ISN'T THE KIND OF LAWYER WHO LOOKS FOR THE SPOTLIGHT QUOTE WADE LAMBERT IN NEW YORK CONTRIBUTED TO THIS ARTICLE OSCAR HERRERA ADMITS HE IS A CROOK EAGER TO COLLECT LUCRATIVE PREMIUMS ON LIFE INSURANCE POLICIES THE FORMER INSURANCE AGENT LIED TO CUSTOMERS AND FORGED SIGNATURES HE EVEN CHEATED HIS OWN UNCLE OUT OF TWENTY SEVEN THOUSAND DOLLARS BUT WHEN AN IRATE POLICYHOLDER FINALLY HAULED MR. HERRERA BEFORE A JURY LAST YEAR THE JURORS LET HIM OFF SCOT FREE INSTEAD THEY BLAMED HIS EMPLOYER NEW YORK LIFE INSURANCE COMPANY FOR HIS MISDEEDS AND AWARDED THE POLICYHOLDER A WIDOW WHO LOST SIXTY FIVE THOUSAND DOLLARS AN ASTOUNDING TWENTY ONE MILLION DOLLARS NEW YORK LIFE ULTIMATELY SETTLED THE CIVIL SUIT FOR AN UNDISCLOSED SUM AND PROSECUTORS HAVE BROUGHT NO CRIMINAL CHARGES STILL THE HERRERA CASE IS SENDING SHOCK WAVES THROUGH THE LIFE INSURANCE INDUSTRY FOR YEARS IT HAS BLAMED ABUSES SUCH AS THOSE ADMITTED BY MR. HERRERA ON INDIVIDUAL QUOTE ROGUE QUOTE AGENTS NOW AFTER YEARS OF FRAUD AND DECEIT BY SOME AGENTS MANY PEOPLE FIND THAT EXCUSE WEARING THIN COURTS GOVERNMENT OFFICIALS AND THE PUBLIC ARE BEGINNING TO CONCLUDE THAT THE INDUSTRY ITSELF IS A ROGUE THAT MUST BE BROUGHT TO HEEL IT'S NOT PLAUSIBLE FOR THE COMPANIES TO SAY IT'S JUST A BAD APPLE THEY CREATE A CLIMATE FOR THIS SORT OF THING SAYS JOSEPH BELTH EDITOR OF THE INSURANCE FORUM NEWSLETTER HE CONTENDS THAT WHAT GOES ON IN THE LIFE INSURANCE BUSINESS IS A NATIONAL SCANDAL CERTAINLY EVIDENCE OF CONTINUING ABUSES IS MOUNTING FLORIDA STATE REGULATORS FOR EXAMPLE ARE BATTLING METROPOLITAN LIFE INSURANCE COMPANY OVER THE PRACTICE OF MARKETING LIFE INSURANCE AS A RETIREMENT VEHICLE AND FAILING TO MAKE CLEAR TO CUSTOMERS THEY ARE BUYING INSURANCE UNDER FLORIDA LAW THAT PRACTICE IS DEEMED FRAUD AND CARRIES STIFF PENALTIES MET LIFE SAYS AS MANY AS SIXTY THOUSAND PEOPLE NATIONWIDE MAY HAVE BEEN MISLED BY ITS AGENTS AND HAS PROMISED TO PAY UP TO FORTY MILLION DOLLARS IN COMPENSATION BUT FLORIDA'S INSURANCE COMMISSIONER TOM GALLAGHER IS DETERMINED THAT MET LIFE WON'T GET AWAY WITH BLAMING AN AGENT WE HOLD COMPANIES RESPONSIBLE FOR THEIR AGENTS MR. GALLAGHER VOWS SINCE FLORIDA BEGAN ITS INVESTIGATION IN FACT AT LEAST THREE MORE COMPANIES NEW YORK LIFE SEARS ROEBUCK AND COMPANY'S ALLSTATE CORPORATION AND PRUDENTIAL INSURANCE COMPANY OF AMERICA HAVE ADMITTED THAT ONE OR MORE OF THEIR AGENTS HAVE USED A VIRTUALLY IDENTICAL MARKETING SCHEME AND INVESTIGATORS IN A DOZEN OTHER STATES ARE ALSO LOOKING AT MET LIFE'S SALES PRACTICES AT A RECENT LIFE INSURANCE CONFERENCE IN HAWAII EXECUTIVES OF OTHER INSURANCE COMPANIES THANKED A MET LIFE REPRESENTATIVE FOR TAKING THE HEAT ON THE ISSUE BUT THE HEAT SOON MAY BE ON AN ENTIRE INDUSTRY LONG ACCUSTOMED TO FREEWHEELING METHODS AND LAX REGULATION IN WASHINGTON SENATOR HOWARD METZENBAUM PLANS TO HOLD HEARINGS SOON ON MET LIFE AND OTHER INSURERS THE OHIO DEMOCRAT ALONG WITH REPRESENTATIVE JOHN DINGELL A MICHIGAN DEMOCRAT WANTS AN EXPANDED FEDERAL ROLE IN INSURANCE REGULATION ANGER OVER SALES PRACTICES COULD PROVIDE ADDITIONAL MOTIVATION TO WREST AUTHORITY FROM THE STATES MEANWHILE STATE INSURANCE COMMISSIONERS ARE WORKING TO AVERT FEDERAL REGULATION BY TRYING TO ENFORCE THEIR OWN RULES MORE EFFECTIVELY MANY WANT TO FORCE THE COMPANIES TO BE MORE CANDID ABOUT THE INVESTMENT PROSPECTS OF LIFE INSURANCE BARRING INSURERS AND THEIR AGENTS FROM SUCH MISLEADING PRACTICES AS QUOTE ILLUSTRATING QUOTE POTENTIAL RETURNS WHEN SELLING INSTEAD AGENTS WOULD HAVE TO DISCLOSE PAST PERFORMANCE MUCH AS MUTUAL FUNDS DO STATES ARE ALSO CRACKING DOWN ON ONE OF THE MOST PERVASIVE FORMS OF LIFE INSURANCE FRAUD CALLED CHURNING SEEKING OUT POLICYHOLDERS WHO HAVE BEEN PAYING PREMIUMS FOR YEARS AND HAVE FINALLY BUILT UP SOME EQUITY IN THEIR POLICIES UNSCRUPULOUS AGENTS PERSUADE THEM TO BORROW AGAINST THE VALUE OF THEIR POLICIES AND ROLL THE PROCEEDS INTO A NEW UNNECESSARY POLICY LAST YEAR NEW YORK STATE SAID IT SUSPENDED OR FINED THIRTY LIFE INSURANCE AGENTS FOR CHURNING INCLUDING AGENTS WITH EQUITABLE COMPANIES GUARDIAN LIFE INSURANCE COMPANY OF AMERICA JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY AND MUTUAL LIFE INSURANCE COMPANY OF NEW YORK ALL THE COMPANIES SAY THAT THEY TRY TO MONITOR THEIR SALESPEOPLE BUT THAT WITH THOUSANDS OF THEM A FEW GO ASTRAY BUT NEW YORK'S INSURANCE COMMISSIONER SALVATORE CURIALE PROMISES MORE ACTION WARNING EXECUTIVES AND AGENTS SHOULD BE ON NOTICE THAT PENALTIES INCLUDING FINES AND LOSS OF LICENSES WILL BE FORTHCOMING THE EFFORTS TAKEN TOGETHER REPRESENT ONE OF THE LARGEST ASSAULTS ON THE LIFE INSURANCE INDUSTRY SINCE NINETEEN OH FIVE WHEN NEW YORK'S EXPLOSIVE ARMSTRONG COMMITTEE HEARINGS LED TO FAR REACHING REFORMS ALTHOUGH THE INDUSTRY HAS STEADFASTLY RESISTED CHANGE SINCE THEN IT NOW CONCEDES THAT IT HAS LITTLE CHOICE BUT TO TRY TO CLEANSE ITSELF WE MUST MAKE SURE THAT WE ARE NEVER VULNERABLE AGAIN NEW YORK LIFE'S GENERAL COUNSEL ALICE KANE SAID IN A SPEECH TO AGENTS FOLLOWING THE HERRERA DECISION THERE IS NO DOUBT WE ARE BEING HELD TO A HIGHER STANDARD OF ACCOUNTABILITY BOTH THE INDUSTRY AND AGENT GROUPS SAY HOWEVER THAT THE PROBLEMS ARE NOT WIDESPREAD AS THEY WANT TO BUILD UP LONG TERM RELATIONSHIPS WITH CUSTOMERS AND THUS HAVE NO INTEREST IN CHEATING THEM EVEN THOUGH CONSUMERS SPEND SOME SIXTY FIVE BILLION DOLLARS ANNUALLY ON VARIOUS FORMS OF LIFE INSURANCE FEW REALLY KNOW EXACTLY WHAT THEY ARE BUYING MOST WHO TRY TO READ A POLICY ARE OVERWHELMED WITH TERMS SUCH AS PAID UP ADDITION MORTALITY CHARGE AND WAIVE OF PREMIUM RIDER AS A RESULT MANY SIMPLY BOW TO AGENTS' HIGHPRESSURE TACTICS WITHOUT KNOWING WHAT THEY ARE BUYING OR ITS COST QUOTE TO GET THE SALESMAN OUT OF THE KITCHEN A LOT OF PEOPLE TAKE ON A BURDEN THEY CAN'T HANDLE QUOTE SAYS JAMES HUNT A WOBURN MASSACHUSETTS ACTUARY ASSOCIATED WITH THE NATIONAL INSURANCE CONSUMER ORGANIZATION LIFE INSURANCE AGENTS MEANWHILE HAVE TREMENDOUS FINANCIAL INCENTIVES TO SELL INSURANCE ANY WAY THEY CAN ESPECIALLY WHOLE LIFE POLICIES WHICH CARRY NOT ONLY A DEATH BENEFIT BUT ALSO AN INVESTMENT FEATURE THE TYPICAL WHOLE LIFE POLICY PAYS BIG COMMISSIONS TO AGENTS IN THE FIRST YEAR WHILE ACCUMULATING LITTLE VALUE FOR THE POLICYHOLDER FOR INSTANCE A FORTY FIVE YEAR OLD MALE WHO BUYS A THREE HUNDRED THOUSAND DOLLAR WHOLE LIFE POLICY MIGHT PAY ABOUT SIX THOUSAND EIGHT HUNDRED DOLLARS A YEAR IN PREMIUMS WHILE HE WON'T BREAK EVEN FOR FIVE OR EVEN TEN YEARS AND LOSES EVERYTHING IF HE CASHES OUT EARLIER THE AGENT WHO SOLD HIM THE POLICY IMMEDIATELY COLLECTS A COMMISSION EQUAL TO FIFTY FIVE PERCENT OF THE FIRST YEAR PREMIUMS OR THREE THOUSAND SEVEN HUNDRED FIFTY DOLLARS ADMINISTRATIVE EXPENSES AND COMMISSIONS FOR THE AGENT'S SUPERIORS EAT UP THE REST OF THE MONEY IN THE FIRST YEAR THE CONSUMER THROWS ALL HIS MONEY AWAY ON COSTS SAYS GLENN DAILY A FINANCIAL PLANNER IN NEW YORK BAD AS THAT IS FOR THE CONSUMER THE DECEIT AND FRAUD COMMITTED BY SOME AGENTS MAKE BUYING INSURANCE EVEN RISKIER AS THE HERRERA CASE INDICATES COURT TRANSCRIPTS AND EXHIBITS IN THE DUVAL COUNTY TRIAL ILLUMINATE SOME OF THE DARKER PRACTICES EXISTING IN THE INDUSTRY MR. HERRERA JOINED NEW YORK LIFE'S CORPUS CHRISTI OFFICE IN NINETEEN EIGHTY FIVE AT AGE THIRTY TWO DRIVEN BY WHAT HE SAID WAS GREED AND A FEAR OF BEING FIRED FOR NOT MEETING SALES QUOTAS HE SOON BEGAN TO CUT CORNERS ONE OF HIS VICTIMS WAS RICHARD CRUZ WHO HAD PURCHASED TERM LIFE INSURANCE A MODERATELY PRICED POLICY THAT PROVIDES A DEATH BENEFIT BUT NO INVESTMENT GAINS WHEN MR. CRUZ SPURNED MR. HERRERA'S ENTREATIES TO SWITCH TO A MORE EXPENSIVEAND FOR MR. HERRERA LUCRATIVE WHOLE LIFE POLICY MR. HERRERA TOOK MATTERS INTO HIS OWN HANDS HE FORGED MR. CRUZ'S NAME ON AN AUTHORIZATION FORM TO AUTOMATICALLY WITHDRAW ENOUGH MONEY FROM MR. CRUZ'S CHECKING ACCOUNT TO PAY THE HIGHER WHOLE LIFE PREMIUMS THE PRACTICE SOMETIMES DONE BY HOLDING THE AUTHORIZATION FORM UP AGAINST A WINDOW TO TRACE OUT A SIGNATURE IS COMMON ENOUGH IN THE INDUSTRY TO HAVE A NAME WINDOWING MR. CRUZ'S WIFE VERONICA DISCOVERED THE LARGER WITHDRAWALS AND COMPLAINED AFTER AN INVESTIGATION NEW YORK LIFE REVERSED THE TRANSACTIONS BUT TOOK NO ACTION AT THE TIME AGAINST MR. HERRERA MR. HERRERA ALSO PERSUADED HIS UNCLE JOSE LOPEZ TO BUY AN ANNUITY FOR TWENTY SEVEN THOUSAND DOLLARS FROM NEW YORK LIFE BUT ANNUITIES PAY SMALL COMMISSIONS COMPARED WITH WHOLE LIFE SO MR. HERRERA TOOK THE MONEY FORGED HIS UNCLE'S SIGNATURE AND BOUGHT HIM A THREE HUNDRED THOUSAND DOLLAR WHOLE LIFE INSURANCE POLICY BECAUSE MR. LOPEZ WAS SEVENTY THE ANNUAL PREMIUMS WERE STEEP WITHIN TWO YEARS ALL THE MONEY MR. LOPEZ PAID HAD BEEN EATEN UP BY THE PREMIUMS MR. LOPEZ COMPLAINED AND GOT HIS MONEY BACK MR. HERRERA'S BIGGEST FRAUD INVOLVED RAMIRO AND LAMAR HERNANDEZ WHO LIVED IN BENEVIDES A POOR DUVAL COUNTY TOWN SIXTY MILES WEST OF CORPUS CHRISTI MR. HERNANDEZ WORKED AS A ROUGHNECK SUPERVISING CREWS THAT LAID OIL FIELD PIPE WHEN THE OIL BUSINESS PROSPERED SO DID THE HERNANDEZ FAMILY WHEN THE BUSINESS SUFFERED THE HERNANDEZES WENT WITHOUT HOT WATER AND LIT THEIR SMALL HOUSE WITH CANDLES THEN MR. HERNANDEZ SUDDENLY CAME INTO MONEY IN NINETEEN EIGHTY SEVEN WHEN HE HAD A NECK OPERATION HIS SURGEON LEFT A SPONGE INSIDE HIM NEAR HIS SPINE AND MR. HERNANDEZ WAS PARALYZED FROM THE NECK DOWN HE SUED AND WON A THREE HUNDRED THIRTY ONE THOUSAND DOLLAR SETTLEMENT MR. HERRERA HEARD ABOUT IT AND ALONG WITH HIS MANAGER LAUNCHED A HARD SELL CAMPAIGN AIMED AT GETTING MR. HERNANDEZ TO BUY AS MUCH INSURANCE AS POSSIBLE AFTER BEING COURTED FOR SEVERAL MONTHS MR. HERNANDEZ AGREED TO INVEST ONE HUNDRED THOUSAND DOLLARS SPLIT AMONG THREE NEW YORK LIFE ANNUITIES BUT MR. HERRERA WOULD HAVE EARNED A COMMISSION OF ONLY A FEW THOUSAND DOLLARS SO HE REFOCUSED HIS EFFORTS ON MRS. HERNANDEZ AND EVENTUALLY PERSUADED HER TO SIGN UP FOR A ONE HUNDRED THOUSAND DOLLAR LIFE INSURANCE POLICY THEN HE INCREASED HER COVERAGE TO ONE MILLION DOLLARS BY CAREFULLY ADDING A ZERO TO THE COVERAGE POLICY A MOVE THAT INCREASED HIS COMMISSION TENFOLD FOR TWO YEARS THE FRAUD WENT UNDETECTED ALTHOUGH THE PREMIUMS CAME TO TWENTY SEVEN THOUSAND DOLLARS A YEAR MRS. HERNANDEZ NEVER GOT A BILL MR. HERRERA WOULD WITHOUT HER KNOWLEDGE MAKE THE PAYMENTS BY WITHDRAWING MONEY FROM HER ANNUITIES BY WINDOWING SIGNATURES ON AUTHORIZATION FORMS EVENTUALLY THE MONEY IN THE ANNUITY ACCOUNT RAN OUT AND IN EARLY NINETEEN NINETY ONE MRS. HERNANDEZ GOT A TWENTY SEVEN THOUSAND DOLLAR BILL FROM NEW YORK LIFE WHICH SAID HER POLICY WOULD LAPSE IF SHE FAILED TO PAY THE PREMIUM SHE DISCOVERED THE FRAUD AND FILED SUIT DURING THE TRIAL NEW YORK LIFE USED THE EVIDENCE AGAINST MR. HERRERA TO PORTRAY HIM AS A CON MAN WHO ACTED ALONE BUT MRS. HERNANDEZ'S ATTORNEY FRANK HERRERA NO RELATION TO OSCAR PRESENTED EVIDENCE THAT OSCAR HERRERA'S ACTIONS GREW OUT OF THE CULTURE OF THE CORPUS CHRISTI OFFICE OSCAR HERRERA'S ATTORNEY ROLAND LEON TOOK A SIMILAR APPROACH AT THE TIME MR. HERRERA SOLD THE POLICY TO MRS. HERNANDEZ THE CORPUS CHRISTI OFFICE WAS HEADED BY RONALD DAWSON MR. DAWSON WHO HAS SINCE LEFT NEW YORK LIFE WAS AMONG ITS MOST SUCCESSFUL SALES MANAGERS AGENTS WHO WORKED FOR HIM WERE UNDER TREMENDOUS PRESSURE TO SELL QUOTE IT WAS DO OR DIE QUOTE TESTIFIED RONALD GARZA A FORMER AGENT IN THE OFFICE ANOTHER AGENT OSWALDO SONNY COREA TESTIFIED THAT HIS MANAGER ENCOURAGED HIM TO BOOST COMMISSIONS BY CONVERTING TERM POLICIES TO WHOLE LIFE INCLUDING POLICIES OWNED BY HIS FATHER AND UNCLE MR. COREA SAID HE QUIT RATHER THAN AGREE TO CHEAT I DIDN'T WANT TO GET CAUGHT UP IN A SYSTEM WHERE I HAD TO DO ILLEGAL STUFF TO MEET MANAGEMENT REQUIREMENTS AND MANAGEMENT GOALS HE TESTIFIED HE ALSO SAID THAT WINDOWING WAS COMMONPLACE AND THAT HE SAW MR. HERRERA HOLD UP AUTHORIZATION FORMS AGAINST A WINDOW TO TRACE SIGNATURES MR. HERRERA WHO ADMITTED FORGERIES HAS LEFT NEW YORK LIFE MANAGEMENT MEMOS IN THE CORPUS CHRISTI OFFICE WRITTEN AFTER MR. DAWSON WAS REASSIGNED TO ANOTHER OFFICE BACK UP MUCH OF WHAT THE AGENTS ALLEGED ONE MEMO WARNED AGAINST WINDOWING IN THE PAST THIS OFFICE HAS HAD A VERY VERY LOOSE ATTITUDE REGARDING WINDOWING SIGNATURES ANOTHER CAUTIONED AGAINST UNAUTHORIZED CONVERSIONS OF TERM LIFE POLICIES INTO WHOLE LIFE ONE LAST TIME ON TERM CONVERSIONS WE HAVE TO BE CAREFUL THEY'RE WATCHING US QUOTE MR. DAWSON HIMSELF BECAME THE SUBJECT OF A NEW YORK LIFE INVESTIGATION INTO COMMISSION SWITCHING AT NEW YORK LIFE AND OTHER INSURERS GENERAL MANAGERS GET BONUSES BASED ON HOW MANY OF THEIR AGENTS REACH A CERTAIN SALES LEVEL IF ONE AGENT MADE THE LEVEL AND ANOTHER FELL SHORT ACCORDING TO WITNESSES IN THE HERRERA TRIAL MR. DAWSON WOULD ENCOURAGE THE MORE SUCCESSFUL AGENT TO BE A TEAM PLAYER AND SWITCH ENOUGH OF HIS COMMISSIONS TO THE OTHER AGENT SO BOTH COULD QUALIFY THE SUCCESSFUL AGENT WOULD BE REPAID IN THE FUTURE IN A DEPOSITION MR. DAWSON SAID HE ALLOWED COMMISSION SWITCHING ONLY FOR CLERICAL REASONS AND DENIED PRESSURING AGENTS TO CHEAT A LAWYER FOR HIM ASSERTS THAT THERE WAS NO CREDIBLE EVIDENCE AT THE HERRERA TRIAL LINKING RON DAWSON TO ANY UNETHICAL CONDUCT OR WRONGDOING JURORS WERE PLAINLY OUTRAGED BY WHAT THEY HEARD ALTHOUGH MR. HERRERA WAS A DEFENDANT IN THE CIVIL CASE THEY DIDN'T HOLD HIM FINANCIALLY LIABLE INSTEAD THEY HELD NEW YORK LIFE RESPONSIBLE FOR HIS ACTIONS THEY FOUND THAT IT HAD CHEATED MRS. HERNANDEZ AND ORDERED IT TO PAY HER SIXTY FIVE THOUSAND DOLLARS FOR ACTUAL DAMAGES ONE MILLION DOLLARS FOR MENTAL ANGUISH FIVE MILLION DOLLARS FOR LEGAL FEES AND FIFTEEN MILLION DOLLARS IN PUNITIVE DAMAGES A SUM THEY DEEMED JUST PUNISHMENT FOR A COMPANY WITH A NET WORTH OF TWO POINT SIX BILLION DOLLARS SINCE AGREEING TO SETTLE THE CASE BEFORE TAKING IT TO APPEAL NEW YORK LIFE HAS HELD SEMINARS AND SHOWED EMPLOYEES A VIDEOTAPE DESCRIBING THE HERRERA CASE TO MAKE SURE AGENTS FOLLOW ETHICAL PRACTICES AS FOR MRS. HERNANDEZ SHE BEGAN GETTING CALLS FROM LIFE INSURANCE AGENTS EVEN BEFORE THE TRIAL ENDED HER ATTORNEY SAYS THE AGENTS TOLD HER THAT SHE SHOULDN'T THINK BADLY OF THEM JUST BECAUSE ONE AGENT BURNED HER PRUDENTIAL SECURITIES INCORPORATED DIDN'T INFLATE PAYOUTS ON ITS ENERGY LIMITED PARTNERSHIPS BY BORROWING FUNDS TO DISTRIBUTE TO INVESTORS AN EXPERT WITNESS FOR THE BROKERAGE FIRM TESTIFIED THE TESTIMONY OF KENNETH BURKE AN AUDIT DIRECTOR AT ERNST AND YOUNG CAME IN A FAIRNESS HEARING IN A FEDERAL COURT HERE OVER A PROPOSED SETTLEMENT BY PRUDENTIAL ABOUT ONE HUNDRED THIRTY THOUSAND INVESTORS HAVE ACCUSED THE BROKERAGE FIRM IN A CLASS ACTION SUIT OF MISLEADING THEM ON THE RISKS AND REWARDS OF ONE POINT FOUR FIVE BILLION DOLLARS IN THIRTY FIVE OIL AND GAS PARTNERSHIPS WHICH HAVE SUNK TO ABOUT HALF OF THEIR ORIGINAL VALUE PRUDENTIAL QUOTE BORROWED WHEN THEY VIEWED THE BUSINESS NEED DICTATED IT QUOTE MR. BURKE TESTIFIED WHEN ASKED IF THE FIRM BORROWED FUNDS TO INFLATE INVESTOR DISTRIBUTIONS HE SAID I JUST DON'T SEE IT MR. BURKE'S TESTIMONY IS THE STRONGEST TO DATE FOR PRUDENTIAL ON ONE OF THE MOST SIGNIFICANT ALLEGATIONS IN THE CLASS ACTION CASE BUT MR. BURKE MADE HIS STATEMENTS EVEN AS INTERNAL PRUDENTIAL DOCUMENTS UNCOVERED IN THE CASE SUGGEST PRUDENTIAL KNEW IN THE MID NINETEEN EIGHTIES THAT THERE WERE PROBLEMS IN PAYING OUT DISTRIBUTIONS TO INVESTORS FROM ENERGY PARTNERSHIPS IN A NINETEEN EIGHTY FIVE MEMO SUMMARIZING A MEETING OF PRUDENTIAL PARTNERSHIP INVESTORS WILLIAM PITTMAN A FORMER SENIOR PARTNERSHIP EXECUTIVE SAID HE WAS CONCERNED THAT BECAUSE SOME OF THE FIRM'S PARTNERSHIPS WERE BORROWING MONEY FOR CURRENT NEEDS THE RETURNS BEING PAID TO INVESTORS DID NOT REFLECT THE TRUE RETURNS BUT WERE INFLATED PRUDENTIAL PREVIOUSLY HAS SAID THAT IT BORROWED FIVE POINT SEVEN MILLION DOLLARS FOR A HANDFUL OF PARTNERSHIPS IN NINETEEN EIGHTY FIVE AND NINETEEN EIGHTY SIX IN ONLY TWO INSTANCES DID ITS PARTNERSHIP DISTRIBUTIONS FALL SHORT OF CASH FLOW AND THOSE INSTANCES INVOLVED BORROWING LESS THAN ONE MILLION DOLLARS AND WERE LATER DISCLOSED TO INVESTORS THE BROKERAGE FIRM HAS SAID PRUDENTIAL SAID THE BORROWING WAS APPROPRIATE BECAUSE IT WAS FOR CAPITAL ITEMS THE FAIRNESS HEARING HELD BEFORE FEDERAL JUDGE MARCEL LIVAUDAIS JUNIOR IS LIKE A MINI TRIAL FOR THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT THOUGH JUDGE LIVAUDAIS IS EXPECTED TO APPROVE PRUDENTIAL'S SETTLEMENT OFFER AFTER THE HEARING ENDS TODAY THE ACCUSATIONS RAISED HERE REPRESENT A MICROCOSM OF THE CRITICISM DOGGING PRUDENTIAL OVER SALES OF EIGHT BILLION DOLLARS OF PARTNERSHIPS PRUDENTIAL HAD PROPOSED PAYING INVESTORS A TOTAL OF ONE HUNDRED TWENTY MILLION DOLLARS IN CASH TO SETTLE THE CASE THAT'S NOW ABOUT NINETY MILLION DOLLARS BECAUSE NEARLY SIXTEEN THOUSAND OF THE ONE HUNDRED THIRTY THOUSAND INVESTORS HAVE DECIDED TO OPT OUT BUT THE SETTLEMENT OFFER STILL IS FAR HIGHER THAN AN EARLIER OFFER OF THIRTY SEVEN MILLION DOLLARS IN CASH AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM THE EARLIER SETTLEMENT WAS WITHDRAWN LAST YEAR AMID HEAVY CRITICISM FROM PLAINTIFFS' ATTORNEYS THE CURRENT SETTLEMENT OFFER WHICH IS BACKED BY MOST PLAINTIFF LAWYERS WOULD BRING TO ABOUT ONE POINT TWO SEVEN BILLION DOLLARS OR AN AVERAGE OF EIGHTY SEVEN CENTS ON THE DOLLAR THE AMOUNT INVESTORS WILL END UP GETTING FOR THEIR ORIGINAL ONE POINT FOUR FIVE BILLION DOLLAR INVESTMENT THE INVESTORS ALREADY HAVE RECEIVED DISTRIBUTIONS OF MORE THAN SIX HUNDRED FIFTY MILLION DOLLARS AND WILL GET AN ADDITIONAL FOUR HUNDRED NINETY ONE MILLION DOLLARS FROM THE SALE OF THE PARTNERSHIPS TO PARKER AND PARSLEY COMPANY A TEXAS OIL AND GAS COMPANY PRUDENTIAL WAS ONE OF WALL STREET'S BIGGEST SELLERS OF LIMITED PARTNERSHIP INVESTMENTS MANY OF WHICH HAVE SOURED AND TRIGGERED LAWSUITS THE PRUDENTIAL CLASS ACTION CASE IS BELIEVED TO BE THE LARGEST INVOLVING PARTNERSHIPS IT ALSO REPRESENTS THE BIGGEST SINGLE CHUNK OF DISPUTED DEALS IN PRUDENTIAL'S MASSIVE PARTNERSHIP MESS INVESTORS WHO OPT OUT OF THE CLASS ACTION CASE HAVE SEVERAL OPTIONS THEY CAN PURSUE PRIVATE ACTIONS AGAINST PRUDENTIAL IN COURT OR THROUGH ARBITRATION OR THEY CAN TRY TO TAP INTO A THREE HUNDRED THIRTY MILLION DOLLAR REPARATIONS FUND SET UP BY THE FIRM IN A BROADER SETTLEMENT WITH FEDERAL AND STATE REGULATORS IN OCTOBER SEPARATELY ANOTHER PRUDENTIAL WITNESS TESTIFIED AT THE HEARING THAT HUGE LOSSES SUFFERED BY ENERGY PARTNERSHIP INVESTORS STEMMED SOLELY FROM AN UNEXPECTED PLUNGE IN OIL PRICES NOT ANY SYSTEMATIC FRAUD THE OUT OF POCKET LOSSES ARE FULLY ACCOUNTED FOR BY THE FAILURE OF OIL PRICES TO ATTAIN THE LEVELS ANTICIPATED BY OIL EXPERTS TESTIFIED BEN C. BALL JUNIOR AN ENERGY CONSULTANT AND FORMER GULF OIL COMPANY VICE PRESIDENT THAT'S THE WHOLE STORY THERE ARE NO VILLAINS TO LOOK FOR THERE ARE NO CULPRITS MR. BALL SAID BUT MR. BALL'S TESTIMONY WAS ATTACKED BY STUART GOLDBERG A PLAINTIFFS' ATTORNEY WHO IS OBJECTING TO THE SETTLEMENT WHY WHEN OIL PRICES WENT FROM THIRTEEN DOLLARS TO EIGHTEEN DOLLARS A BARREL DID THE LIMITED PARTNERSHIP FORMED WHEN PRICES WERE AT THIRTEEN DOLLARS A BARREL LOSE OVER TWENTY THREE PERCENT OF ITS VALUE MR. GOLDBERG ASKED MR. BALL RESPONDED THAT SOME PARTNERSHIPS PARTICULARLY THE LATER DEALS INVESTED MORE IN GAS THAN OIL PROPERTIES QUOTE IN GENERAL GAS PRICES DO NOT TRACK OIL PRICES QUOTE MR. BALL SAID RICHARD W. SCOTT WAS NAMED VICE PRESIDENT AND GENERAL MANAGER NEW VENTURES AND PRESIDENT AT THE G. T. E. VANTAGE INCORPORATED UNIT OF THIS TELECOMMUNICATIONS SUPPLIER MR. SCOTT FORTY NINE YEARS OLD SUCCEEDS PAUL S. HARRINGTON FIFTY TWO WHO IS RETIRING MR. SCOTT WAS MOST RECENTLY EXECUTIVE DIRECTOR BUSINESS ACQUISITION AT THE G. T. E. GOVERNMENT SYSTEMS CORPORATION UNIT NESTLE S. A. ZURICH SAID THAT SALES IN NINETEEN NINETY THREE CLIMBED FIVE POINT FOUR PERCENT TO FIFTY SEVEN POINT FIVE BILLION SWISS FRANCS THIRTY NINE POINT THREE SEVEN BILLION DOLLARS FROM FIFTY FOUR POINT FIVE BILLION FRANCS IN NINETEEN NINETY TWO AND THAT EARNINGS FOR THE YEAR WERE HIGHER AS WELL THE SALES FIGURES FOR NINETEEN NINETY THREE WERE IN LINE WITH EXPECTATIONS EXPRESSED AT A NEWS CONFERENCE IN NOVEMBER BY CHAIRMAN HELMUT MAUCHER HE SAID AT THE TIME THAT PROFIT AND SALES WERE BOTH EXPECTED TO RISE ABOUT FIVE PERCENT IN THE YEAR FINAL NINETEEN NINETY THREE EARNINGS FIGURES AS WELL AS THE PROPOSED DIVIDEND PAYOUT WILL BE ANNOUNCED MARCH TWENTY FOURTH THE GIANT SWISS FOOD AND BEVERAGE COMPANY ALSO SAID IT EXPECTS AN INCREASE IN SALES AND PROFIT FOR NINETEEN NINETY FOUR QUOTE UNLESS THE RECESSION IN EUROPE DEEPENS AND PROVIDED EXCHANGE RATES DON'T TAKE A VERY UNFAVORABLE TURN VIS A VIS THE SWISS FRANC QUOTE CONSOLIDATION OF COMPANIES ACQUIRED DURING NINETEEN NINETY THREE CAUSED SALES TO CLIMB THREE PERCENT THE COMPANY SAID IT ADDED THAT IT SAW GOOD VOLUME GROWTH ESPECIALLY IN ASIA AND LATIN AMERICA BUT ALSO IN NORTH AMERICA OVERALL GROWTH IN SALES VOLUME EXCLUDING ACQUISITIONS AND DIVESTITURES ROSE ONE POINT SEVEN PERCENT NESTLE SAID IT ADDED THAT THE GROWTH RATE ACCELERATED STARTING LAST FALL INDONESIA WANTS TO DOUBLE ITS ELECTRICITY OUTPUT CHINA EXPECTS NINETEEN NINETY FIVE PASSENGER AND FREIGHT MOVEMENTS TO BE FORTY SEVEN PERCENT HIGHER THAN IN NINETEEN NINETY THAILAND HOPES NEW FREEWAYS AND TRANSIT SYSTEMS WILL EASE THE CHAOS THAT BANGKOK CALLS TRAFFIC VIETNAM WOULD LIKE TELEPHONES THAT WORK THESE ARE BITS OF A BORING CONCEPT CALLED INFRASTRUCTURE BUT IT IS EXCITING STUFF TO MANUFACTURERS AROUND THE WORLD AND NOWHERE IS IT MORE ROUSING THAN IN EAST ASIA WHICH CLAIMS THE WORLD'S MOST BOISTEROUS ECONOMIES TO MAINTAIN THEIR SOARING GROWTH RATES THOSE COUNTRIES MUST SPEND VAST SUMS A WORLD BANK ECONOMIST FIGURES INFRASTRUCTURE SPENDING HAS REACHED SEVENTY FIVE BILLION DOLLARS A YEAR AND SOON WILL BE ONE HUNDRED BILLION DOLLARS SUCH NUMBERS CAUSE GREAT JOY IN COMPANIES THAT MAKE THINGS LIKE GENERATORS TELEPHONE SYSTEMS AND LOCOMOTIVES SAYS AN OFFICIAL OF A. B. B. ASEA BROWN BOVERI LIMITED THE SWISS SWEDISH MAKER OF POWER PLANTS QUOTE EVERYONE IS THERE THIS IS A BONANZA GOING ON OUT THERE THE IMPACT IS GLOBAL NOT ONLY DOES THIS SPENDING LET EAST ASIANS PROLONG A BOOM IT ALSO BRINGS RELIEF TO SAGGING ECONOMIES ELSEWHERE GERMANY'S EXPORTS TO EAST ASIA WHICH INCLUDE LARGE AMOUNTS OF INFRASTRUCTURE ITEMS ARE RISING AT A TEN PERCENT CLIP AND HAVE A MEASURABLE IMPACT ON ITS RECOVERY THIS IS BECOMING MORE AND MORE IMPORTANT TO THE GERMAN ECONOMY SAYS MARTIN HUFNER CHIEF ECONOMIST OF MUNICH'S BAYERISCHEN VEREINSBANK THE EFFECT ON CERTAIN COMPANIES IS GREATER ALCATEL ALSTHOM'S ALCATEL N. V. THE FRENCH TELECOMMUNICATIONS COMPANY HAS NINE PERCENT OF ITS SALES IN ASIA BUT HOPES TO DOUBLE THIS RATIO IN TEN YEARS GENERAL ELECTRIC COMPANY'S POWER SYSTEMS DIVISION EXPECTS TO GET FORTY FIVE PERCENT OF ITS NEW ORDERS FROM ASIA BEFORE LONG A. B. B. EXPANDING FROM A EUROPEAN BASE HOPES ASIA EVENTUALLY WILL PROVIDE SOME THIRTY PERCENT OF ITS BUSINESS THE LARGEST OVERSEAS PROJECT IN AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S HISTORY IS IN CHINA GERMANY'S SIEMENS A. G. IS COMPETING FOR RAILWAY PROJECTS ACROSS THE REGION UNLIKE MOST OF EASTERN EUROPE WHICH ALSO HAS HUGE NEEDS EAST ASIA CAN AFFORD TO BUY MOST NATIONS THERE HAVE CONVERTIBLE CURRENCIES HIGH SAVINGS RATIOS AND GREAT EXPECTATIONS EVEN IN THE SHORT RUN THIS GIVES THEM GREATER DOMESTIC RESOURCES PLUS EASIER ACCESS TO OUTSIDE FINANCE AMERICANS OFTEN SAY THEY HAVE SPECIAL ADVANTAGES THOUGH COMPETITORS MAY DISAGREE SOME LIKE G. E. CLAIM BETTER TECHNOLOGY OTHERS FIND BUYERS LIKE THE CHINESE TILT TOWARD THE U. S. FOR POLITICAL REASONS AT TIMES IN ANY CASE U. S. MULTINATIONALS ARE DOING WELL THOUGH MANY MEDIUM SIZED COMPANIES REMAIN SURPRISINGLY RELUCTANT TO VENTURE ABROAD YET IT IS DIFFICULT TO PREDICT WINNERS IN THIS GLOBAL RACE ESPECIALLY AT THE JOB CREATION LEVEL THAT IS BECAUSE EVEN THIS OFT UNGLAMOROUS BUSINESS REFLECTS THE COMPLEXITIES OF MODERN COMMERCE SUCH AS FINANCING DESPITE ASIA'S WEALTH OUTSIDE FINANCING IS OFTEN ESSENTIAL FOR CLOSING DEALS THIS CAN GIVE EUROPEAN AND JAPANESE COMPANIES A CRUCIAL ADVANTAGE GREATER ACCESS TO OFFICIAL SOFT LOANS ALCATEL FOR EXAMPLE USED BELGIAN AND FRENCH AID TO START BIG IN CHINA AND HAS USED AID FROM AUSTRALIA NORWAY AND ITALY FOR OTHER CONTRACTS THE GOODS INVOLVED THEN COME FROM ALCATEL FACTORIES IN THOSE NATIONS CREATING JOBS THERE SOURCING OTHER BUSINESS CONSIDERATIONS ALSO CAN DETERMINE WHERE PRODUCTS ARE MADE WESTINGHOUSE ELECTRIC CORPORATION SOMETIMES HAS GENERATORS BUILT BY ITS JAPANESE PARTNER MITSUBISHI AND VICE VERSA A. B. B. OFTEN EXPORTS COMPONENTS FROM AN AMERICAN SUBSIDIARY COMBUSTION ENGINEERING WHILE SCHNEIDERS S. A. ANOTHER FRENCH COMPANY MAY RELY ON ITS U. S. AFFILIATE SQUARE D. THUS A CONTRACT SIGNED BY EXECUTIVES FROM SAY STOCKHOLM OR ORLANDO DOESN'T NECESSARILY CREATE WORK NEARBY EXCHANGE RATES JAPAN HAS DOMINATED THE POWER GENERATION EQUIPMENT MARKET IN SOUTHEAST ASIA POWER GENERATION IS THE BIGGEST SLICE OF THE INFRASTRUCTURE MARKET AND IS STRONG IN OTHER FIELDS BUT IT IS FACING A STRONG CURRENCY PROBLEM LIKE THAT OF THE U. S. IN THE MID EIGHTIES ASIAN STATES WITH DOLLAR INCOMES AND YEN DEBTS DON'T WANT LARGE NEW OBLIGATIONS TO JAPAN AND ARE TURNING ELSEWHERE TEMPORARILY AT LEAST THIS MAY HURT COMPANIES LIKE MITSUBISHI ELECTRIC CORPORATION HITACHI LIMITED AND TOSHIBA ENGINEERING AND CONSTRUCTION COMPANY FOR NOW THOUGH THERE IS BUSINESS FOR ALMOST EVERYONE AND MORE TO COME OWNED BY MINORITIES BIG COMPANIES ELITE LAW FIRMS AND GOVERNMENT AGENCIES ALL ANNOUNCED PROGRAMS IN RECENT YEARS TO STEER MORE WORK TO MINORITY LAW FIRMS THE RESULT SO FAR SOME PROGRESS BUT LESS THAN MANY PEOPLE HAD HOPED ROBERT LOWE IS ONE LAWYER WHO HAS COME OUT AHEAD BUT NOT BEFORE HAVING TO DISPEL SOME STEREOTYPES MR. LOWE AN ASIAN AMERICAN REMEMBERS AN INTERVIEW HE HAD WITH AN EMPLOYEE OF THE RESOLUTION TRUST CORPORATION IN NINETEEN NINETY ABOUT WORKING ON FAILED THRIFT CASES FOR THE FEDERAL AGENCY QUOTE YOU GUYS HAVE SECRETARIES AND WORD PROCESSORS DON'T YOU QUOTE HE RECALLS THE AGENCY REPRESENTATIVE ASKING AS A GRADUATE OF THE RESPECTED UNIVERSITY OF TEXAS LAW SCHOOL WHO WAS ALREADY COUNSELING THE LIKES OF NORDSTROM INCORPORATED AND PORSCHE CARS NORTH AMERICA INCORPORATED MR. LOWE FORTY THREE YEARS OLD FOUND THE QUERY A LITTLE AMUSING PEOPLE THINK YOU CAN HARDLY WALK IF YOU ARE A MINORITY OWNED FIRM HE SAYS THE R. T. C. SOON LEARNED THAT LOWE AND ASSOCIATES HAD BOTH SECRETARIES AND COMPUTERS AND THE AGENCY IS NOW A SATISFIED CUSTOMER HALF OF THE ANNUAL INCOME OF THE SIX LAWYER FIRM BASED IN ALEXANDRIA VIRGINIA COMES FROM A SCORE OF THRIFT CASES IT HANDLES FOR THE AGENCY I AM GLAD I HAD THE OPPORTUNITY TO PUT MY FOOT IN THE DOOR HE SAYS BUT WHILE LOWE AND ASSOCIATES IS A MAJOR BENEFICIARY OF THE RECENT PUSH TO INCREASE THE PROFILE OF MINORITY LAW FIRMS SOME OTHER MINORITY SHOPS ARE FACING A TOUGH TIME ONE PROBLEM IS THAT CORPORATE LEGAL DEPARTMENTS AND EVEN THE R. T. C. SEEKING TO CUT COSTS HAVE REDUCED THEIR RELIANCE ON OUTSIDE COUNSEL IN ADDITION NOT EVERY GROUP THAT SAYS IT WANTS TO STEER WORK TO MINORITY FIRMS ENDS UP DOING SO WHERE THE INITIATIVES HAVE WORKED THEY HAVE SERVED THE CLIENTS' NEEDS WHILE SPARKING THE FORMATION AND GROWTH OF MINORITY FIRMS THOUGH MOST MINORITY OWNED FIRMS ARE STILL QUITE SMALL WITH ABOUT FORTY LAWYERS AT MOST THE ELEVATED DEMAND FOR THEIR WORK HAS LED TO THE CREATION OF SOME SIGNIFICANT STRATEGIC ALLIANCES WITH BIGGER MORE ESTABLISHED FIRMS LAST FALL FOR EXAMPLE JONES DAY REAVIS AND POGUE ONE OF THE U. S.'S LARGEST LAW FIRMS FORMED AN ALLIANCE WITH SIX LAWYER WHITE HILL SIMS AND WIGGINS A BLACK OWNED FIRM IN DALLAS TERMS CALL FOR JONES DAY TO GET A PIECE OF THE WORK THAT WHITE HILL MAY PULL IN AS A RESULT OF GOVERNMENT OR CORPORATE EFFORTS TO USE MINORITY LAW FIRMS WHITE HILL IN TURN GETS ACCESS TO JONES DAY'S RESEARCH AND SUPPORT FACILITIES AND A FANCY NEW ADDRESS VIA A CUT RATE LEASE ON EXCESS SPACE JONES DAY HAD IN ITS OFFICE IN DOWNTOWN DALLAS SO FAR EVERYONE IS OPTIMISTIC ABOUT THE ARRANGEMENT WHICH RICHARD KNEIPPER A PARTNER WITH JONES DAY IN DALLAS VIEWS PRAGMATICALLY I AM NOT INTERESTED IN DOING GOOD BUT RATHER MAKING MONEY FOR BOTH FIRMS AND IF I CAN DO SOME GOOD IN THE PROCESS THAT WOULD BE GREAT HE SAYS I HOPE THEY TURN OUT TO BE JUST AN AWESOMELY SUCCESSFUL FIRM IN SOME OTHER INSTANCES THOUGH SUCH PARTNERSHIPS HAVE PROVEN TO BE FRAUGHT WITH PITFALLS DISPUTES CAN ARISE OVER APPORTIONING BILLINGS BETWEEN THE FIRMS AND OVER WHO BEARS LEGAL LIABILITY IN CASE OF ALLEGED MALPRACTICE MINORITY FIRMS BEING SMALLER CAN ALSO BE LESS STABLE THAN THEIR PARTNERS GRAHAM AND JAMES CALLED OFF A MAJOR JOINT VENTURE WITH A MINORITY FIRM THREE YEARS AGO AFTER GRAHAM'S WOULD BE PARTNER RAN INTO FINANCIAL TROUBLES AND SOME PEOPLE EXPRESS CONCERN THAT THE ARRANGEMENTS SOMETIMES TURN INTO MECHANISMS FOR BIG FIRMS TO ATTRACT BUSINESS TARGETED FOR MINORITIES WITHOUT GIVING A FAIR SHARE OF WORK TO THE MINORITY JOINT VENTURE PARTNER THE VENTURES THAT FOCUS ON GETTING WORK FROM THE R. T. C. SEEM TO HAVE BEEN AMONG THE MOST LUCRATIVE SO FAR MR. LOWE'S SUCCESS GREW FROM A JOINT VENTURE WITH MORRISON AND HECKER OF KANSAS CITY WHICH FOUND ITS BIG R. T. C. PRACTICE THREATENED A FEW YEARS AGO WHEN THE AGENCY DECIDED TO CUT OFF FIRMS UNLESS THEY HAD TIES TO MINORITIES OTHER BIG FIRMS ENTERING SUCH ALLIANCES INCLUDE THE LIKES OF HUGHES HUBBARD AND REED BASED IN NEW YORK ATLANTA'S POWELL GOLDSTEIN FRAZER AND MURPHY AND BROBECK PHLEGER AND HARRISON SAN FRANCISCO BUT EVEN THIS SORT OF VENTURE DOESN'T ALWAYS WORK DONALD HILL A PARTNER IN WHITE HILL IS ON HIS SECOND JOINT VENTURE WITH A BIG FIRM THE FIRST A HIGHLY TOUTED TWO YEAR ALLIANCE WITH THE DALLAS OFFICE OF ARTER AND HADDEN A BIG CLEVELAND BASED FIRM DIDN'T BRING MUCH NEW WORK HIS WAY HE SAYS AN ARTER AND HADDEN PARTNER FORREST SMITH DISPUTES THE IDEA THAT THE VENTURE WAS A FLOP AND SAYS THE FIRM IS STILL KEEN ON THE IDEA OF JOINT VENTURES IF YOU WANT TO CRACK THE CORPORATE COMMUNITY THE AVERAGE MINORITY LAW FIRM IS NOT GOING TO BE ABLE TO GET THROUGH THAT DOOR THAT FIRM IS GOING TO NEED SOME WAY TO GET IN THERE QUOTE HE SAYS CORPORATIONS HAVE BEEN WARMING TO MINORITY FIRMS ALTHOUGH THE BOTTOM LINE HAS BEEN UNEVEN MUCH OF THE CORPORATE INTEREST HAS BEEN CHANNELED THROUGH THE A. B. A. MINORITY COUNSEL DEMONSTRATION PROGRAM WHICH SET OUT IN NINETEEN EIGHTY EIGHT TO HOOK UP MINORITY LAWYERS WITH CORPORATE LEGAL DEPARTMENTS ABOUT ONE HUNDRED FORTY CORPORATIONS HAVE PLEDGED TO RETAIN LAWYERS FROM A LIST OF MINORITY LAWYERS THAT THE A. B. A. MAINTAINS ALTHOUGH LATELY THE GROWTH IN SIGNATORIES HAS SLOWED AND FEES GENERATED BY THE PROGRAM ON THE ORDER OF FORTY MILLION DOLLARS TO FIFTY MILLION DOLLARS A YEAR HAVE BEEN ABOUT FLAT IN THE PAST TWO YEARS MANY FIRMS SAY THE PROGRAM WAS INVALUABLE IN THE BEGINNING BUT QUESTION WHETHER ECONOMICS ARE PROMPTING SOME COMPANIES TO RETREAT SAYS RENAYE CUYLER OF GORAYEB AND CUYLER A MINORITY OWNED NEW YORK FIRM AND A PARTICIPANT IN THE A. B. A. PROGRAM THE OLD BOY NETWORK IS STILL ALIVE AND WELL SOURCE NINETEEN NINETY THREE SURVEY OF LAW FIRM ECONOMICS ALTMAN WEIL PENSA PUBLICATIONS INCORPORATED THE GENERAL PARTNERS OF SEVENTEEN LIMITED PARTNERSHIPS THAT OWN SELF SERVICE STORAGE CENTERS MODIFIED A PROPOSAL TO CONSOLIDATE THE PARTNERSHIPS INTO A PUBLICLY TRADED REAL ESTATE INVESTMENT TRUST THE NEW PROPOSAL GIVES LIMITED PARTNERS THE OPTION TO RECEIVE AS MUCH AS ONE HUNDRED EIGHTY MILLION DOLLARS IN CASH ALONG WITH STOCK IN THE NEW COMPANY THE ORIGINAL PROPOSAL OFFERED SIX YEAR NOTES ALONG WITH STOCK THE REVISED BID COMPETES WITH A SWEETENED BID BY U. HAUL INTERNATIONAL INCORPORATED TO ACQUIRE THE PARTNERSHIPS FOR THREE HUNDRED FIFTY SEVEN POINT FIVE MILLION DOLLARS IN CASH THE GENERAL PARTNERS YESTERDAY RECOMMENDED A REJECTION OF THE LATEST U. HAUL OFFER THE GENERAL PARTNERS HAVE VALUED THE PARTNERSHIPS' ASSETS AT THREE HUNDRED EIGHTY SEVEN POINT FIVE MILLION DOLLARS AND CONTEND THE CONSOLIDATED R. E. I. T. COULD BE VALUED AT EVEN MORE BY THE STOCK MARKET THE LIMITED PARTNERSHIPS ARE MANAGED BY SHURGARD INCORPORATED OF SEATTLE WHOSE CONTROLLING SHAREHOLDER IS A GENERAL PARTNER OF ALL OF THE PARTNERSHIPS PHOENIX BASED U. HAUL IS CONTROLLED BY THE SHOEN FAMILY THROUGH ITS NEVADA HOLDING COMPANY AMERCO EDWARD V. QUOTE NED QUOTE REGAN WAS ELECTED A DIRECTOR OF THIS LONG TERM HEALTH CARE FACILITIES OPERATOR SUCCEEDING CYRUS SAMRAD SIXTY FOUR YEARS OLD WHO RESIGNED MR. REGAN SIXTY THREE IS PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER OF THE JEROME LEVY ECONOMICS INSTITUTE HE PREVIOUSLY WAS NEW YORK STATE COMPTROLLER FROM NINETEEN SEVENTY EIGHT TO NINETEEN NINETY TWO MAXTOR CORPORATION SAN JOSE CALIFORNIA SAID THAT KEY CREDITORS AGREED TO KEEP OPEN ITS LINE OF CREDIT DESPITE ITS RECENT VIOLATION OF CERTAIN TERMS OF THE LOAN THE WAIVER OF MAXTOR'S DEFAULT BY C. I. T. GROUP SLASH BUSINESS CREDIT INCORPORATED BUYS TIME FOR THE CASH STARVED COMPUTER DISK DRIVE MAKER TO OBTAIN A ONE HUNDRED FIFTY MILLION DOLLAR CASH INFUSION FROM SOUTH KOREA'S HYUNDAI ELECTRONICS INDUSTRIES COMPANY WHICH WAS ANNOUNCED LAST AUGUST AT HYUNDAI'S REQUEST MAXTOR EXTENDED TO FEBRUARY THIRD THE CLOSING DATE OF THE TRANSACTION BECAUSE OF DELAYS IN GETTING KOREAN GOVERNMENT APPROVAL MAXTOR SAID THE LOAN DEFAULT OCCURRED DECEMBER TWENTY FIFTH THE END OF ITS FISCAL THIRD QUARTER RESULTS FOR THAT QUARTER WILL BE ANNOUNCED IN EARLY FEBRUARY PARAGON TRADE BRANDS INCORPORATED SAID IT HAS BEEN NAMED IN A PATENT INFRINGEMENT LAWSUIT FILED BY PROCTER AND GAMBLE COMPANY IN DELAWARE FEDERAL COURT REGARDING CERTAIN FEATURES OF ITS DISPOSABLE DIAPERS PARAGON A FEDERAL WAY WASHINGTON MAKER OF PRIVATE LABEL DIAPERS SAID QUOTE NEITHER OF THE TWO PROCTER AND GAMBLE PATENTS CAN BE VALIDLY CONSTRUED TO COVER THE COMPANY'S PRODUCTS QUOTE A REPRESENTATIVE FOR PROCTER AND GAMBLE CINCINNATI WASN'T AVAILABLE TO COMMENT A SPOKESWOMAN FOR PARAGON SAID IT HADN'T RECEIVED AN OFFICIAL COPY OF THE SUIT AND THEREFORE COULDN'T COMMENT FURTHER ANTHEM ELECTRONICS INCORPORATED SAN JOSE CALIFORNIA SAID FOURTH QUARTER NET INCOME PLUMMETED NINETY FOUR PERCENT MAINLY BECAUSE OF A SEVEN POINT EIGHT MILLION DOLLAR CHARGE FOR THE SALE OF ITS EAGLE TECHNOLOGY UNIT THE DISTRIBUTOR OF COMPUTER PARTS SAID IT EARNED FOUR HUNDRED SEVENTY TWO THOUSAND DOLLARS OR FOUR CENTS A SHARE COMPARED WITH SEVEN POINT NINE MILLION DOLLARS OR SIXTY FOUR CENTS A SHARE A YEAR EARLIER SALES ROSE TWENTY THREE PERCENT TO ONE HUNDRED EIGHTY FOUR POINT NINE MILLION DOLLARS FROM ONE HUNDRED FIFTY POINT OH MILLION DOLLARS FOR NINETEEN NINETY THREE ANTHEM EARNED EIGHTEEN MILLION DOLLARS OR ONE DOLLAR AND FORTY SIX CENTS A SHARE DOWN FORTY ONE PERCENT FROM THIRTY POINT FOUR MILLION DOLLARS OR TWO DOLLARS AND FORTY EIGHT CENTS A SHARE IN NINETEEN NINETY TWO SALES ROSE TWENTY THREE PERCENT TO SIX HUNDRED SIXTY THREE POINT TWO MILLION DOLLARS FROM FIVE HUNDRED THIRTY EIGHT POINT FOUR MILLION DOLLARS THE SALE OF EAGLE TECHNOLOGY TO ARTISOFT INCORPORATED WAS COMPLETED JANUARY THE U. S. LABOR DEPARTMENT SAID A FEDERAL COURT IN NEW YORK AWARDED TWO HUNDRED TWENTY FOUR EMPLOYEES OF WALDBAUM INCORPORATED MORE THAN ONE POINT EIGHT MILLION DOLLARS IN BACK WAGES AND DAMAGES DUE TO VIOLATIONS OF RECORD KEEPING AND OVERTIME LABOR LAWS IN OCTOBER JUDGE CHARLES H. TENNEY HAD DETERMINED THE COMPANY UNINTENTIONALLY BUT IMPROPERLY VIOLATED THE LABOR LAWS AND ASKED THE LABOR DEPARTMENT TO CALCULATE BACK WAGES OWED TO EMPLOYEES JUDGE TENNEY ALSO ISSUED AN ORDER PROHIBITING WALDBAUM FROM FURTHER VIOLATIONS WALDBAUM IS A UNIT OF GREAT ATLANTIC AND PACIFIC TEA COMPANY A GROCERY CHAIN MAJORITY OWNED BY TENGELMANN GROUP OF GERMANY IN MONTVALE N. J. AN A. AND P. SPOKESMAN SAID THAT THE VIOLATIONS WERE UNINTENTIONAL AND THAT EMPLOYEES ARE NOW FULLY PAID MR. COFFEE INCORPORATED SAID IT RECEIVED AN OFFER TO ENTER INTO DISCUSSIONS WITH AN UNIDENTIFIED POTENTIAL BUYER QUOTE DISCUSSIONS ARE IN A VERY PRELIMINARY STAGE AND NO DECISION CONCERNING AN APPROPRIATE COURSE OF ACTION HAS BEEN REACHED QUOTE THE CLEVELAND COMPANY SAID THE ANNOUNCEMENT WAS MADE AFTER THE STOCK MARKET HAD CLOSED FOR THE DAY MR. COFFEE FINISHED AT ELEVEN DOLLARS AND SEVENTY FIVE CENTS UP TWENTY FIVE CENTS IN NASDAQ STOCK MARKET TRADING GARY C. CHIN AN OPPENHEIMER AND COMPANY ANALYST SAID MR. COFFEE WOULD MAKE AN ATTRACTIVE ACQUISITION FOR A LARGE CONSUMER HOUSEWARES COMPANY SELLING THROUGH THE MASS RETAIL MARKET MR. COFFEE HAS ABOUT THIRTY FOUR PERCENT OF THE U. S. AUTOMATIC DRIP COFFEE MAKER MARKET THE LEADING POSITION MR. CHIN SAID HE CONSERVATIVELY FIGURES MR. COFFEE COULD FETCH ABOUT EIGHTEEN DOLLARS A SHARE LAST SPRING MR. COFFEE WAS THE SUBJECT OF TAKEOVER RUMORS ALTHOUGH NOTHING CAME OF THEM AT THE TIME IN THE THIRTY NINE WEEKS ENDED SEPTEMBER TWENTY SIXTH MR. COFFEE HAD NET INCOME OF ONE POINT SEVEN MILLION DOLLARS OR TWENTY CENTS A SHARE WHICH INCLUDED A CHARGE OF ONE POINT TWO MILLION DOLLARS FOR THE EARLY EXTINGUISHMENT OF DEBT SALES IN THE PERIOD TOTALED ONE HUNDRED THIRTEEN MILLION DOLLARS FOR THE FISCAL YEAR ENDED DECEMBER TWENTY SEVENTH NINETEEN NINETY TWO MR. COFFEE EARNED THREE POINT SEVEN MILLION DOLLARS OR FORTY FIVE CENTS A SHARE ON ONE HUNDRED SIXTY NINE MILLION DOLLARS IN SALES FRENCH TELECOMMUNICATIONS AND ENGINEERING COMPANY ALCATEL ALSTHOM S. A. SAID IT SIGNED AGREEMENTS WITH THE POST TELEGRAPH AND TELEPHONE AGENCY OF CHINA TO CREATE TWO JOINT VENTURE COMPANIES IN TELECOMMUNICATIONS IN BEIJING AND CHENGDU THE FIRST VENTURE ALCATEL OF BEIJING TRANSMISSION SYSTEMS WILL MAKE AND SELL MICROWAVE EQUIPMENT FOR CHINA'S MARKET THE SECOND VENTURE ALCATEL OF CHENGDU COMMUNICATION SYSTEMS WILL MAKE AND SELL LINE TRANSMISSION EQUIPMENT THE TWO WILL BE JOINTLY OWNED BY ALCATEL THROUGH ITS ALCATEL CHINA UNIT AND BY THE CHINESE GOVERNMENT ALCATEL ITALIA WILL ENSURE THE TECHNOLOGY TRANSFER ALCATEL HAS A FIFTY PERCENT MARKET SHARE IN DIGITAL SWITCHING EQUIPMENT IN CHINA NIPSCO INDUSTRIES INCORPORATED MERRILLVILLE INDIANA RESTRUCTURED ITS NORTHERN INDIANA PUBLIC SERVICE COMPANY SUBSIDIARY BY SEPARATING ITS GAS AND ELECTRIC BUSINESSES EACH OPERATION WILL NOW BE RESPONSIBLE FOR HANDLING THE REGULATED AND NONREGULATED SIDES OF ITS BUSINESS UNISYS CORPORATION BLUE BELL PENNSYLVANIA RECEIVED A ONE POINT FIVE MILLION DOLLAR CONTRACT FROM SPANISH INSURER ABEILLE PREVISORA FOR NETWORK INTEGRATION CONSULTING SERVICES AND SOFTWARE AND HARDWARE THE DEAL INCLUDES INSTALLATION OF UNISYS'S INFOIMAGE FOLDER SOFTWARE U. S. CAN CORPORATION OAK BROOK ILLINOIS COMPLETED ITS ACQUISITION OF STEELTIN CAN CORPORATION BALTIMORE AND TWO AFFILIATED COMPANIES EASTERN CONTAINER COMPANY AND EASTERN METAL DECORATING INCORPORATED FOR ABOUT TWENTY MILLION DOLLARS VIGORO CORPORATION CHICAGO WILL ACQUIRE MID OHIO CHEMICAL COMPANY IN A STOCK DEAL VALUED AT FORTY EIGHT MILLION DOLLARS UNDER THE AGREEMENT VIGORO WOULD EFFECT A TAX FREE EXCHANGE OF NINETEEN MILLION DOLLARS IN COMMON STOCK AND TWENTY NINE MILLION DOLLARS IN PREFERRED STOCK FOR MID OHIO'S ASSETS INCLUDING WORKING CAPITAL UNION CAMP CORPORATION SAID FOURTH QUARTER NET INCOME MORE THAN DOUBLED TO SEVENTEEN POINT SIX MILLION DOLLARS OR TWENTY FIVE CENTS A SHARE FROM SEVEN POINT THREE MILLION DOLLARS OR ELEVEN CENTS A SHARE A YEAR EARLIER MAINLY BECAUSE OF ONE TIME ITEMS REVENUE FOR THE QUARTER AT THIS PAPER PACKAGING AND BUILDING PRODUCTS COMPANY IN WAYNE N. J. ROSE SEVEN PERCENT TO SEVEN HUNDRED NINETY THREE POINT EIGHT MILLION DOLLARS FROM SEVEN HUNDRED FORTY FOUR POINT THREE MILLION DOLLARS A YEAR EARLIER PRETAX INCOME FROM OPERATIONS ROSE FOURTEEN PERCENT TO FIFTY FOUR POINT NINE MILLION DOLLARS QUOTE EARNINGS IN OUR PAPER AND PAPERBOARD BUSINESS CONTINUED TO BE NEGATIVELY AFFECTED BY WEAK PRICING QUOTE SAID GENE CATLEDGE CHAIRMAN AND CHIEF EXECUTIVE OFFICER ON THE OTHER HAND OUR OVERALL SHIPMENTS WERE UP EIGHT PERCENT AS THE IMPROVING ECONOMY CONTINUED TO INCREASE DEMAND IN PARTICULAR FOR LINERBOARD AND PACKAGING THE LATEST QUARTER INCLUDED A FOUR POINT TWO MILLION DOLLAR GAIN OR SIX CENTS A SHARE FROM SALE OF LAND THE YEAR EARLIER QUARTER INCLUDED A FIVE POINT SIX MILLION DOLLAR CHARGE OR EIGHT CENTS A SHARE FROM EARLY RETIREMENT OF DEBT CYRIX CORPORATION CITED A QUOTE MANUFACTURING DIFFICULTY QUOTE FOR A SEVENTY ONE PERCENT PLUNGE IN FOURTH QUARTER EARNINGS INDICATING THAT ITS STRATEGY OF CLONING CHIPS MADE BY INTEL CORPORATION MAY BE MUCH HARDER THAN EXPECTED THE RICHARDSON TEXAS CHIP MAKER'S NET INCOME FELL TO ONE POINT TWO MILLION DOLLARS OR SIX CENTS A SHARE FROM FOUR MILLION DOLLARS OR TWENTY THREE CENTS A SHARE A YEAR EARLIER SALES ROSE TWENTY TWO PERCENT TO THIRTY TWO POINT EIGHT MILLION DOLLARS FROM TWENTY SEVEN MILLION DOLLARS THE EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS IN NASDAQ STOCK MARKET TRADING THE CYRIX STOCK CLOSED AT NINETEEN DOLLARS AND SEVENTY FIVE CENTS DOWN TWENTY FIVE CENTS IN RECENT YEARS CYRIX HAS BEEN TOUTED AS A SERIOUS COMPETITOR TO INTEL AS PART OF ITS PLAN TO GROW QUICKLY CYRIX OPTED NOT TO BUILD ITS OWN MANUFACTURING FACILITIES BUT INSTEAD USE OUTSIDE CONTRACTORS PROBLEMS AROSE WHEN ITS PRIMARY CONTRACTOR BEGAN USING A MORE COMPLEX TECHNOLOGY SAID A COMPANY SPOKESWOMAN AT LEAST FOR THE SHORT TERM WE HAVE SOLVED THAT PROBLEM IN DECEMBER WE MANAGED TO SHIP QUITE A FEW UNITS FROM THIS NEW TECHNOLOGY SHE SAID JAMES A. GARY WAS NAMED EXECUTIVE VICE PRESIDENT OF THE EXCHANGE FORMERLY KNOWN AS THE MIDWEST STOCK EXCHANGE MR. GARY FIFTY TWO YEARS OLD HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER OF FUTURES BROKERAGE FIRM SAUL STONE AND COMPANY HE SUCCEEDS ROGER HENDRICK WHO WILL CONTINUE WITH THE EXCHANGE AS VICE PRESIDENT SILICON GRAPHICS INCORPORATED BENEFITING FROM SALES OF ITS NEW INDY GRAPHICS WORKSTATIONS SAID FISCAL SECOND QUARTER NET INCOME SURGED SIXTY FIVE PERCENT ON A THIRTY SEVEN PERCENT INCREASE IN REVENUE NET IN THE PERIOD ENDED DECEMBER THIRTY FIRST ROSE TO THIRTY SIX POINT THREE MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE FROM TWENTY TWO MILLION DOLLARS OR FIFTEEN CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO THREE HUNDRED SEVENTY POINT FOUR MILLION DOLLARS FROM TWO HUNDRED SEVENTY POINT TWO MILLION DOLLARS A YEAR EARLIER THE RESULTS BEAT ANALYSTS' EXPECTATIONS OF ABOUT TWENTY CENTS A SHARE THE MOUNTAIN VIEW CALIFORNIA WORKSTATION MAKER ALSO BEAT ITS OWN GOALS WITH THIRTEEN POINT SIX PERCENT OPERATING MARGINS FOR THE QUARTER UP FROM TEN POINT NINE PERCENT A YEAR EARLIER IT HAD HOPED THE MARGINS WOULD BE ELEVEN PERCENT TO THIRTEEN PERCENT SALOMON BROTHERS ANALYST JEFF CANIN SAID THE IMPROVEMENT WAS DRIVEN BY HIGHER SALES AS THE COMPANY KEPT COSTS FLAT QUOTE THE SECOND QUARTER WAS NOTHING SHORT OF OUTSTANDING QUOTE HE SAID SILICON'S STOCK ROSE SEVENTY FIVE CENTS OR THREE POINT FOUR PERCENT TO CLOSE AT TWENTY THREE POINT ONE TWO FIVE DOLLARS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BERNARD V. VONDERSCHMITT AND CURTIS S. WOZNIAK HAVE BEEN ELECTED DIRECTORS OF THIS MAKER OF MULTIMEDIA COMPUTER PRODUCTS MR. VONDERSCHMITT SEVENTY YEARS OLD IS PRESIDENT AND COFOUNDER OF XILINX INCORPORATED MR. WOZNIAK THIRTY EIGHT IS VICE PRESIDENT OF MARKETING FOR SUN MICROSYSTEMS COMPUTER CORPORATION A UNIT OF SUN MICROSYSTEMS INCORPORATED THE APPOINTMENTS EXPAND BOARD MEMBERSHIP TO SIX FILLING ONE VACANT SEAT AND ADDING A NEW ONE CONNER PERIPHERALS INCORPORATED AFTER THREE CONSECUTIVE QUARTERLY LOSSES AMID A COMPUTER DISK DRIVE PRICE WAR EARNED A MODEST EIGHT POINT FIVE MILLION DOLLARS IN THE FOURTH QUARTER THE RESULTS EQUAL TO SEVENTEEN CENTS A SHARE WERE IDENTICAL TO THOSE REPORTED A YEAR EARLIER SALES SLUMPED SEVEN POINT FOUR PERCENT TO FIVE HUNDRED SEVENTY FOUR POINT FOUR MILLION DOLLARS FROM SIX HUNDRED TWENTY POINT FIVE MILLION DOLLARS FOR NINETEEN NINETY THREE THE SAN JOSE CALIFORNIA DISK DRIVE MAKER HAD A LOSS OF FOUR HUNDRED FORTY FIVE POINT THREE MILLION DOLLARS OR NINE DOLLARS AND THREE CENTS A SHARE COMPARED WITH NET INCOME OF ONE HUNDRED TWENTY ONE POINT ONE MILLION DOLLARS OR TWO DOLLARS AND NINETEEN CENTS A SHARE IN NINETEEN NINETY TWO THE NINETEEN NINETY THREE LOSS REFLECTS RESTRUCTURING CHARGES AND WRITE DOWNS AMONG OTHER ITEMS OF THREE HUNDRED THIRTY EIGHT POINT FOUR MILLION DOLLARS MUCH OF IT TAKEN IN THE THIRD QUARTER THE CONSENSUS OF ANALYSTS WAS FOR CONNER TO POST A LOSS OF THIRTY EIGHT CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INCORPORATED BUT TODD BAKAR AN ANALYST WITH HAMBRECHT AND QUIST SAID THERE HAS BEEN QUOTE A LOT OF WHISPERING IN THE LAST FEW DAYS THAT THEY WERE GOING TO MAKE MONEY QUOTE TIME WARNER REINSTITUTED A POISON PILL PROVISION IN A DEFENSIVE MOVE AIMED AT KEEPING ITS BIG NEW INVESTOR SEAGRAM AT BAY THE PLAN WHICH EFFECTIVELY LIMITS AN OUTSIDE INVESTOR'S OWNERSHIP TO FIFTEEN PERCENT COMES JUST ONE DAY AFTER SEAGRAM BECAME TIME WARNER'S LARGEST SHAREHOLDER BOOSTING ITS STAKE TO ELEVEN POINT SEVEN PERCENT FROM TEN POINT FOUR PERCENT HOUSING STARTS GREW SIX POINT TWO PERCENT IN DECEMBER PUSHING HOMEBUILDING FOR NINETEEN NINETY THREE TO ITS HIGHEST LEVEL IN FOUR YEARS SEPARATELY INITIAL JOBLESS CLAIMS INCREASED TWENTY THREE THOUSAND LAST WEEK TO THREE HUNDRED EIGHTY THOUSAND THE DOW JONES INDUSTRIALS ROSE SEVEN POINT FIVE NINE TO THREE THOUSAND EIGHT HUNDRED NINETY ONE POINT NINE SIX THE YEAR'S EIGHTH RECORD AMID THE MIXED ECONOMIC NEWS TELE COMMUNICATIONS SAID ITS PURCHASE OF A MILLION T. V. SET TOP CONVERTERS FOR INTERACTIVE CABLE SERVICES WILL BE DELAYED BY NEARLY A YEAR BECAUSE INDUSTRY STANDARDS AREN'T SET APPLE'S PROFIT PLUNGED SEVENTY FIVE PERCENT FOR ITS FIRST QUARTER ALTHOUGH MACINTOSH SHIPMENTS SOARED TO A RECORD THE COMPUTER COMPANY CONTINUES TO FEEL THE SQUEEZE OF SHRINKING PROFIT MARGINS Q. V. C.'S DILLER IS WEIGHING AT LEAST TWO WAYS OF RESTRUCTURING THE COMPANY'S TEN POINT TWO BILLION DOLLAR BID FOR PARAMOUNT WITHOUT NECESSARILY BOOSTING THE TOTAL PRICE PEOPLE CLOSE TO Q. V. C. SAY TWO BIG DRUG COMPANIES POSTED FOURTH QUARTER EARNINGS THAT LARGELY MET EXPECTATIONS REASSURING INVESTORS THAT PFIZER'S WEAK RESULTS DIDN'T SIGNAL A DRUG INDUSTRY TREND BRISTOLMYERS'S PROFIT FELL BECAUSE OF A SPECIAL CHARGE AND AMERICAN HOME'S ROSE JAPAN'S YEAR END TRADE STATISTICS ARE EXPECTED TO SHOW THAT U. S. EXPORTS TO JAPAN HAVE PICKED UP BUT THE BILATERAL TRADE IMBALANCE HASN'T BUDGED ILLUSTRATING ONLY LIMITED SUCCESS FOR PRESIDENT CLINTON'S STRONG YEN POLICY MICROSOFT PLANS TO OFFER SOFTWARE THAT GIVES WINDOWS A NEW QUOTE LOOK AND FEEL QUOTE AIMED AT HOME COMPUTER USERS GUINNESS AND L. V. M. H. RESTRUCTURED THEIR CROSS OWNERSHIP PERMITTING GUINNESS TO FOCUS ITS INVESTMENT ON BUSINESSES THEY HAVE IN COMMON PRUDENTIAL SECURITIES DIDN'T INFLATE PAYOUTS ON ITS LIMITED PARTNERSHIPS BY BORROWING FUNDS TO DISTRIBUTE TO INVESTORS A WITNESS FOR THE FIRM TESTIFIED SHORT INTEREST GREW TWO POINT EIGHT PERCENT ON THE NEW YORK STOCK EXCHANGE TO A RECORD ONE POINT TWO EIGHT BILLION SHARES IN MID JANUARY G. E. REPORTED A TEN PERCENT GAIN IN FOURTHQUARTER PROFIT REVENUE GREW TWELVE PERCENT UP FROM THE THREE PERCENT TO FOUR PERCENT QUARTERLY INCREASES G. E. POSTED IN THE PRIOR THREE PERIODS BANKERS TRUST REPORTED SHARPLY HIGHER FOURTH QUARTER EARNINGS TWO OTHER BANKS BANK OF BOSTON AND KEYCORP ALSO TURNED IN IMPROVED RESULTS WHILE SOCIETY'S EARNINGS DECLINED NEW YORK LIFE INSURANCE SOLD THE BULK OF ITS CANADIAN INSURANCE BUSINESS TO CANADA LIFE ASSURANCE CIRCUS CIRCUS'S MANAGEMENT UPHEAVAL CONTINUED WITH THE RESIGNATION OF WILLIAM PAULOS THE CASINO EXECUTIVE WHO OVERSAW THE OPENING OF THE FIRM'S THREE HUNDRED NINETY MILLION DOLLARS LUXOR RESORT TORONTO MAY LOSE A PROMISED N. B. A. TEAM BECAUSE THE PROVINCIAL GOVERNMENT REFUSES TO DROP BASKETBALL FROM ITS SPORTS BETTING LOTTERY AS REQUIRED UNDER TERMS OF THE NOVEMBER AWARD BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND SIX HUNDRED TEN POINT SIX TWO UP TWENTY THREE POINT FOUR SEVEN COMMODITIES OIL FIFTEEN DOLLARS AND TEN CENTS A BARREL OFF TWELVE CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY TWO POINT SEVEN EIGHT UP ZERO POINT SEVEN ZERO SPOT INDEX ONE HUNDRED TWENTY NINE POINT EIGHT SIX UP ZERO POINT TWO SIX DOLLAR ONE HUNDRED ELEVEN POINT FOUR OH YEN UP ZERO POINT ZERO FIVE ONE POINT SEVEN THREE EIGHT OH MARKS OFF ZERO POINT ZERO ZERO EIGHT ZERO AMERICA'S AGENDA FOR NINETEEN NINETY FOUR IS CRIME WELFARE AND HEALTH CARE WITH ECONOMIC CONCERNS RECEDING A NEW WALL STREET JOURNAL SLASH N. B. C. NEWS POLL FINDS CRIME AND DRUGS ARE NOW THE NUMBER ONE ISSUE ON AMERICANS' MINDS NINETY THREE PERCENT SAY DEALING WITH CRIME SHOULD BE QUOTE AN ABSOLUTE PRIORITY QUOTE FOR CLINTON AND CONGRESS THIS YEAR EIGHTY THREE PERCENT CITE WELFARE REFORM AND SIXTY SEVEN PERCENT HEALTH CARE THE ISSUE AGENDA IS QUITE DIFFERENT THAN A YEAR AGO SAY DEMOCRAT PETER HART AND REPUBLICAN ROBERT TEETER WHO CONDUCTED THE JOURNAL SLASH N. B. C. POLL A YEAR AGO IT WAS THE ECONOMY AND THE ECONOMY CLINTON PLANS TO HIT HARDER ON CRIME IN HIS STATE OF THE UNION ADDRESS HE WILL PLUG THE LONG LANGUISHING CRIME BILL AND ALSO MAY DEVOTE MORE PASSION TO A NEW CALL FOR A HIGHER MORAL ORDER IN AMERICAN SOCIETY THE ADMINISTRATION BEGINS MAPPING PLANS TO PULL TOP OFFICIALS INCLUDING RENO BENTSEN EDUCATION'S RILEY AND HUD'S CISNEROS INTO MORE HIGH PROFILE ROLES IN CRIME FIGHTING GET TOUGH POLICIES ARE FAVORED OVER OTHER CRIME NOSTRUMS FIFTY SEVEN PERCENT SAY CRIME IS EITHER A CRITICAL OR MAJOR PROBLEM IN THEIR OWN COMMUNITIES WHEN ASKED WHETHER MORE EMPHASIS SHOULD BE PLACED ON THE CAUSES OF CRIME OR ON STRICTER PUNISHMENT AMERICANS ARE CLOSELY DIVIDED BUT WHEN THE TALK TURNS TO SPECIFICS PUNISHMENT IS ON THEIR MINDS IN THE POLL SEVENTY SIX PERCENT SAY MANDATORY LIFE SENTENCES FOR ALL THREE TIME VIOLENT OFFENDERS WOULD HAVE A MAJOR IMPACT ON THE PROBLEM STRONG MAJORITIES SAY MAKING MORE CRIMES SUBJECT TO THE DEATH PENALTY AND TOUGHENING PUNISHMENT FOR JUVENILE OFFENDERS WOULD MAKE A BIG DIFFERENCE FIFTY TWO PERCENT SAY PUTTING ONE HUNDRED THOUSAND MORE COPS ON THE STREET WOULD BE A BIG HELP BUT ONLY THIRTY NINE PERCENT SAY BUILDING MORE PRISONS WOULD BE OF MUCH HELP AND FEWER THAN ONE IN FIVE SAY HIGHER FEES ON GUN DEALERS OR RAISING AMMUNITION TAXES WOULD MATTER MUCH ECONOMIC OPTIMISM SURGES AND CLINTON SEEKS CREDIT FOR IT AT FORTY FOUR PERCENT THE NUMBER OF AMERICANS SAYING THE ECONOMY WILL IMPROVE OVER THE NEXT TWELVE MONTHS IS THE HIGHEST IT HAS BEEN SINCE LAST JANUARY CONCERN OVER JOBLESSNESS DROPS TO ITS LOWEST LEVEL SINCE CLINTON TOOK OFFICE ASKED WHO DESERVES MOST CREDIT FOR THE ECONOMY'S UPSWING FORTY NINE PERCENT SAY THE NORMAL BUSINESS CYCLE TWENTY THREE PERCENT SAY CLINTON AND ELEVEN PERCENT SAY BUSH ONLY FOUR PERCENT CREDIT THE FED THE WHITE HOUSE HAS BEEN LABORING TO CONVINCE REPORTERS THAT CLINTON DESERVES CREDIT ARGUING THAT HIS DEFICIT REDUCTION INITIATIVE BROUGHT DOWN LONG TERM INTEREST RATES SOME ECONOMISTS SAY THE GOVERNMENT'S ESTIMATE OF FOURTH QUARTER GROWTH WHICH COMES OUT NEXT FRIDAY COULD BE AS HIGH AS SIX PERCENT THE ROBUST ECONOMY OF THE FOURTH QUARTER SHOULD CONTINUE INTO THE FIRST SAYS LEHMAN BROTHERS' ALLEN SINAI THE URGE TO MERGE AMONG CABLE T. V. AND TELEPHONE COMPANIES IS VIEWED WITH SUSPICION IN THE POLL FIFTY FIVE PERCENT BELIEVE SUCH MERGERS WILL HURT CONSUMERS BY CONCENTRATING TOO MUCH POWER IN THE HANDS OF A FEW COMPANIES COMPARED WITH THIRTY EIGHT PERCENT WHO BELIEVE SUCH MERGERS WILL HELP CONSUMERS BY MAKING MORE OPTIONS AVAILABLE HILLARY'S INVOLVEMENT IN WHITEWATER SEEMS TO HAVE DONE HER LITTLE DAMAGE WITH THE PUBLIC FIFTY ONE PERCENT HAVE POSITIVE VIEWS OF HER LARGELY UNCHANGED FROM DECEMBER THE FINDING SUGGESTS DEMOCRATIC FEARS THAT HER ABILITY TO SELL HEALTH CARE REFORM WOULD BE HURT ARE OVERBLOWN HAVES AND HAVE NOTS INCREASINGLY SPLIT OVER CLINTON'S HEALTH PLAN OPPOSITION AMONG THOSE WHO CURRENTLY ARE COVERED BY HEALTH INSURANCE RISES TO FORTY TWO PERCENT FROM THIRTY THREE PERCENT CONVERSELY SUPPORT AMONG THOSE WHO AREN'T COVERED BY INSURANCE RISES TO SIXTY PERCENT OVERALL AMERICANS FAVOR THE PLAN BY FORTY TWO PERCENT TO THIRTY NINE PERCENT DOWN FROM FORTY SEVEN PERCENT TO THIRTY TWO PERCENT A MONTH AGO DOLE PATROL HOURS BEFORE INMAN'S PUBLIC WITHDRAWAL ANNOUNCEMENT A WHITE HOUSE OFFICIAL PHONED TO GIVE THE SENATE G. O. P. LEADER ADVANCE WORD WITHOUT MENTIONING THAT INMAN WAS ATTACKING DOLE AS A PRINCIPAL REASON FOR HIS DECISION IN THE POLL WHICH WAS CONDUCTED BEFORE INMAN'S ALLEGATIONS DOLE WAS VIEWED POSITIVELY BY FORTY TWO PERCENT NEGATIVELY BY TWENTY THREE PERCENT MORE AID TO RUSSIA COULD COME FROM INTERNATIONAL INSTITUTIONS HOPING THAT REFORMS REMAIN ON TRACK THE ADMINISTRATION TALKS WITH THE I. M. F. AND WORLD BANK ABOUT FINANCING A SOCIAL SAFETY NET FOR RUSSIANS TO CUSHION THE BLOW OF FACTORY CLOSINGS AND LAYOFFS BUT WITH THE EXODUS OF RUSSIAN REFORMERS U. S. OFFICIALS WATCH TO SEE WHAT YELTSIN AND PRIME MINISTER CHERNOMYRDIN DO NOT WHAT THEY SAY BENTSEN'S NEW SLOGAN QUOTE WE WANT TO MAKE SURE THAT SUPPORT ADVANCES AS FAST AS THE REFORMS QUOTE WITH THE ISSUE OF NORTH KOREA'S NUCLEAR PROGRAM RECEDING FROM THE HEADLINES RUSSIA RE EMERGES AS AMERICANS' TOP FOREIGN POLICY PRIORITY IN THE POLL CURRENTLY TWENTY EIGHT PERCENT OF AMERICANS CONSIDER RUSSIA AN ALLY TEN PERCENT CONSIDER IT AN ADVERSARY AND FIFTY SIX PERCENT CONSIDER IT NEITHER MINOR MEMOS BRING BACK GRIDLOCK BY FIFTY SIX PERCENT TO THIRTY THREE PERCENT AMERICANS WOULD RATHER HAVE CONGRESS AND THE PRESIDENCY CONTROLLED BY DIFFERENT PARTIES MOST PEOPLE MAY NOT KNOW EXACTLY WHAT THE TERM MULTIMEDIA MEANS BUT BY FIFTY FOUR PERCENT TO TWENTY ONE PERCENT THEIR INITIAL REACTION TO THE IDEA IS POSITIVE STRONG EARNINGS REPORTS AND CONTINUED INVESTOR CONFIDENCE IN CYCLICALS PUSHED ISSUES HIGHER WITH A KEY INDEX SETTING ITS SEVENTH STRAIGHT RECORD TRADERS AND ANALYSTS SAY FOURTH QUARTER EARNINGS HAVE TAKEN OVER AS THE DRIVING FORCE IN THE SMALL CAPITALIZATION MARKETS WITH MANY OF YESTERDAY'S SHARPEST GAINS AND LOSSES COMING ON THE HEELS OF COMPANIES' QUARTERLY RESULTS THE RUSSELL TWO THOUSAND INDEX ENDED THE DAY AT A SEVENTH STRAIGHT HIGH UP ZERO POINT SEVEN SEVEN OR ZERO POINT THREE PERCENT AT TWO HUNDRED SIXTY THREE POINT THREE SEVEN THE INDEX TRACKS SMALL CAP STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES THE NASDAQ COMPOSITE INDEX WAS UP THREE POINT SEVEN FOUR OR ZERO POINT FOUR SEVEN PERCENT TYING TUESDAY'S RECORD MARK OF SEVEN HUNDRED NINETY THREE POINT OH TWO THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX AT TWO HUNDRED SIXTY THREE POINT TWO THREE WAS UP ZERO POINT TWO EIGHT OR ZERO POINT ONE ONE PERCENT AND THE DOW JONES INDUSTRIAL AVERAGE GAINED SEVEN POINT FIVE NINE OR ZERO POINT TWO PERCENT TO CLOSE AT A RECORD THREE THOUSAND EIGHT HUNDRED NINETY ONE POINT NINE SIX NASDAQ ADVANCERS OUTPACED DECLINERS ONE THOUSAND FIVE HUNDRED SEVENTEEN TO ONE THOUSAND FOUR HUNDRED FIFTY SIX ON VOLUME OF THREE HUNDRED FORTY MILLION SHARES COMPARED WITH WEDNESDAY'S THREE HUNDRED THIRTY EIGHT MILLION SHARES NASDAQ NATIONAL MARKET VOLUME WAS TWO HUNDRED SEVENTY NINE MILLION SHARES DOWN SLIGHTLY FROM THE PREVIOUS SESSION'S TWO HUNDRED EIGHTY TWO MILLION SHARES MANY SMALL COMPANY STOCKS HAD SIGNIFICANT PRICE SWINGS FOLLOWING THE RELEASE OF THEIR QUARTERLY EARNINGS REPORTS BREED TECHNOLOGIES N. Y. S. E. A LAKELAND FLORIDA MAKER OF CRASH SENSORS FOR CAR AIRBAG SYSTEMS ROSE THREE AND ONE QUARTER OR NINETEEN PERCENT TO TWENTY AND THREE EIGHTHS AFTER REPORTING FISCAL SECOND QUARTER EARNINGS OF THIRTY FOUR CENTS A SHARE UP FROM YEAR EARLIER PER SHARE EARNINGS OF THIRTEEN CENTS AND ABOVE ANALYSTS' AVERAGE ESTIMATE OF TWENTY FOUR CENTS GOOD GUYS A CHAIN OF CONSUMER ELECTRONICS STORES BASED IN BRISBANE CALIFORNIA ROSE ONE AND THREE QUARTERS OR FOURTEEN PERCENT TO FOURTEEN AFTER REPORTING FISCAL FIRST QUARTER EARNINGS OF FIFTY SEVEN CENTS A SHARE ON INCREASED SHARES OUTSTANDING UP FROM A YEAR EARLIER FORTY TWO CENTS A SHARE PHOENIX TECHNOLOGIES A NORWOOD MASSACHUSETTS SOFTWARE COMPANY REPORTED FISCAL FIRST QUARTER EARNINGS OF NINE CENTS A SHARE UP FROM THE YEAR EARLIER PERIOD'S EIGHT CENTS A SHARE PHOENIX CLIMBED NINE SIXTEENTHS OR THIRTEEN PERCENT TO FOUR AND SEVEN EIGHTHS BELL SPORTS WAS UP TWO AND THREE QUARTERS OR NINE POINT FIVE PERCENT TO THIRTY ONE AND THREE QUARTERS THE RANTOUL ILLINOIS BICYCLE HELMET MAKER REPORTED FISCAL SECOND QUARTER EARNINGS OF TWENTY FIVE CENTS A SHARE UP FROM YEAR EARLIER PER SHARE OPERATING EARNINGS OF FIFTEEN CENTS SOFTIMAGE FELL FOUR AND SEVEN EIGHTHS OR TWENTY SIX PERCENT TO THIRTEEN AND THREE QUARTERS AFTER THE COMPANY REPORTED FOURTH QUARTER EARNINGS OF FOUR CENTS A SHARE ON INCREASED SHARES OUTSTANDING COMPARED WITH A YEAREARLIER EIGHTEEN CENTS A SHARE THE MONTREAL INTERACTIVE SOFTWARE DEVELOPER NAMED MICHEL Y. LECAVALIER ITS CHIEF FINANCIAL OFFICER A NEW POSITION ALTERA FELL FIVE AND FIVE EIGHTHS OR SIXTEEN PERCENT TO THIRTY DESPITE REPORTING FOURTH QUARTER EARNINGS OF THIRTY FOUR CENTS A SHARE UP FROM A YEAR EARLIER TEN CENTS A SHARE AND AHEAD OF ANALYSTS' EXPECTATIONS FOR THIRTY TWO CENTS A SHARE THE SAN JOSE CALIFORNIA MAKER OF PROGRAMMABLE LOGIC INTEGRATED CIRCUITS MADE A STATEMENT THAT IT IS CAUTIOUS IN ITS OUTLOOK FOR THE NEXT QUARTER SAYING QUOTE SALES GROWTH IS ANTICIPATED TO BE MUCH MORE MODEST THAN OUR RECENT PERFORMANCE QUOTE APPLIED EXTRUSION TECHNOLOGIES A SALEM MASSACHUSETTS PLASTICS COMPANY ROSE ONE AND SEVEN EIGHTHS OR FIFTY TWO PERCENT TO FIVE AND THREE QUARTERS ON NEWS THAT IT SIGNED A LETTER OF INTENT TO PURCHASE BIG BOARD LISTED HERCULES' PACKAGING FILMS GROUP CLEAN HARBORS A QUINCY MASSACHUSETTS ENVIRONMENTAL SERVICES COMPANY ROSE ONE AND ONE HALF OR TWENTY ONE PERCENT TO EIGHT AND ONE HALF AFTER KIDDER PEABODY UPGRADED THE STOCK TO STRONG BUY FROM NEUTRAL WITH A TWELVE DOLLAR TO FOURTEEN DOLLARS TWELVE MONTH PRICE TARGET A. S. T. RESEARCH ROSE FOUR AND THREE EIGHTHS OR EIGHTEEN PERCENT TO TWENTY NINE AND ONE EIGHTH AFTER THE RATING ON THE IRVINE CALIFORNIA PERSONAL COMPUTER MAKER WAS RAISED TO BUY FROM NEUTRAL BY ALEXANDER BROWN AND SONS AND MABON SECURITIES MABON ALSO RAISED ITS PER SHARE EARNINGS ESTIMATE FOR THE FISCAL YEAR ENDING IN JUNE TO ONE DOLLAR AND EIGHTY FIVE CENTS FROM ONE DOLLAR AND SEVENTY CENTS AND RAISED ITS FISCAL NINETEEN NINETY FIVE ESTIMATE TO TWO DOLLARS AND EIGHTY FIVE CENTS FROM TWO DOLLARS IN FISCAL NINETEEN NINETY THREE A. S. T. HAD A PER SHARE LOSS OF ONE DOLLAR AND SEVENTY TWO CENTS AFTER CHARGES ANALYSTS SAY THE MARKET'S SO CALLED JANUARY EFFECT IN WHICH SMALL CAPS SEE A SPATE OF TAX RELATED SELLING LATE IN THE YEAR FOLLOWED BY A JANUARY REBOUND HAS RUN ITS COURSE EARNINGS WILL NOW TAKE OVER AND BE THE DRIVING FORCE SAID GREG KUHN OF KUHN ASSET MANAGEMENT EUGENE PERONI DIRECTOR OF TECHNICAL RESEARCH AT JANNEY MONTGOMERY SCOTT SAID EARNINGS REPORTS ARE INDEED CAUSING MANY STOCKS TO MOVE SHARPLY BUT HE POINTED OUT THAT INDIVIDUAL ISSUES AREN'T HAVING AN EFFECT ON OTHER STOCKS IN THEIR RESPECTIVE INDUSTRY GROUPS OVERALL HE SAID IT'S A CYCLICALLY DRIVEN MARKET WITH ECONOMICALLY SENSITIVE STOCKS IN THE LEAD IT'S A MOMENTUMAND LIQUIDITY DRIVEN MARKET THAT HASN'T REACHED ITS PEAK YET HE SAID MR. PERONI IS ENCOURAGED BY THE MARKET'S LATE DAY STRENGTH WHICH HE SAID UNDERSCORES INVESTORS' CONFIDENCE AND WILLINGNESS TO HOLD THEIR POSITIONS MR. KUHN ADDED THAT THERE'S ANOTHER FACTOR IN SUSTAINING THE RALLY THE SHORTTERM INTEREST RATE UNTIL THE THREE MONTH TREASURY BILL YIELDS THREE POINT THREE PERCENT COMPARED WITH ITS CURRENT TWO POINT NINE NINE PERCENT HE SAID SMALL COMPANY STOCKS WILL CONTINUE TO MOVE HIGHER AS A DEFAULT INVESTMENT QUOTE WE WILL STILL SEE HIGHER HIGHS QUOTE IN THE SMALL CAP MARKET HE SAID DONNA R. FITZPATRICK FORTY FIVE YEARS OLD WAS ELECTED A DIRECTOR OF THIS ENGINEERING AND CONSTRUCTION COMPANY INCREASING THE BOARD'S SIZE TO THIRTEEN MS. FITZPATRICK IS VICE PRESIDENT OF CAULDRON COMPANY A MICRO CONTAMINATION TECHNOLOGY CONCERN AND PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS RADIANCE SERVICES COMPANY UNIT ADAM OPEL A. G. THE GERMAN UNIT OF GENERAL MOTORS CORPORATION OF THE U. S. SAID IT WAS QUOTE IMPOSSIBLE TO AVOID A CLEAR LOSS QUOTE IN NINETEEN NINETY THREE THE FRANKFURT COMPANY WASN'T MORE SPECIFIC BUT SAID IT WAS CONFIDENT IT WOULD RETURN TO PROFITABILITY IN NINETEEN NINETY FOUR IN NINETEEN NINETY TWO OPEL REPORTED A PROFIT OF TWO HUNDRED TWO MILLION MARKS ONE HUNDRED FIFTEEN POINT SEVEN MILLION DOLLARS OPEL SAID SALES FELL TWENTY FOUR PERCENT TO MORE THAN TWENTY TWO BILLION MARKS FROM TWENTY NINE POINT TWO BILLION MARKS A YEAR EARLIER IT DIDN'T PROVIDE A MORE PRECISE FIGURE FOR NINETEEN NINETY THREE WHILE G. M. EUROPE REMAINED PROFITABLE IN NINETEEN NINETY THREE OPEL SAID SEVERAL FACTORS PUSHED THE UNIT INTO THE RED THESE WERE ONE HUNDRED SIXTY MILLION MARKS TO FUND SHORTENED SHIFTS AND THREE HUNDRED FIFTY MILLION MARKS FOR EARLY RETIREMENT AND SEVERANCE PAY AS WELL AS THREE HUNDRED EIGHTY MILLION MARKS IN LOSSES FROM EXCHANGE RATE FLUCTUATIONS OPEL REPORTED OUTPUT SLID TWENTY FOUR PERCENT TO ONE POINT OH SEVEN FOUR MILLION UNITS IN NINETEEN NINETY THREE FROM ONE POINT FOUR ONE ONE MILLION UNITS A YEAR EARLIER I. C. F. KAISER INTERNATIONAL INCORPORATED FAIRFAX VIRGINIA SAID ITS SUBSIDIARY WAS AWARDED A FORTY ONE POINT ONE MILLION DOLLAR SHARE OF THREE SUPPLEMENTAL LABOR CONTRACTS AT LAWRENCE LIVERMORE NATIONAL LABORATORY IN NORTHERN CALIFORNIA THE UNIT KAISER ENGINEERS LIVERMORE WILL PROVIDE SCIENTIFIC ADMINISTRATIVE AND MECHANICAL ENGINEERING EXPERTISE IN A JOINT VENTURE WITH TAD TECHNICAL SERVICE CORPORATION CAMBRIDGE MASSACHUSETTS THE CONTRACTS TOTALING FIFTY FOUR POINT EIGHT MILLION DOLLARS WILL LAST A YEAR WITH ADDITIONAL ONE YEAR OPTIONS I. C. F. KAISER INTERNATIONAL FORMERLY I. C. F. INTERNATIONAL INCORPORATED IS AN ENGINEERING CONSTRUCTION AND CONSULTING SERVICES CONCERN HOWARD A. YORK FORTY NINE YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF METLIFE INVESTMENT MANAGEMENT CORPORATION A UNIT OF THIS INSURANCE AND FINANCIAL SERVICES COMPANY MR. YORK SUCCEEDS GERALD CLARK FIFTY WHO REMAINS CHAIRMAN OF THE UNIT AND CONTINUES AS EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF THE PARENT MR. YORK WAS MOST RECENTLY EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF AMERICAN GENERAL CORPORATION AN INSURANCE COMPANY BASED IN HOUSTON FIRST DATA CORPORATION SAID FOURTH QUARTER PROFIT JUMPED TWENTY TWO PERCENT BECAUSE OF CONTINUED GROWTH IN BASE BUSINESSES THE HACKENSACK N. J. INFORMATION PROCESSING COMPANY SAID NET INCOME FOR THE QUARTER ROSE TO FIFTY TWO POINT NINE MILLION DOLLARS OR FORTY EIGHT CENTS A SHARE FROM FORTY THREE POINT FOUR MILLION DOLLARS OR THIRTY NINE CENTS A SHARE A YEAR EARLIER THE NINETEEN NINETY THREE QUARTER INCLUDED A TWELVE POINT FOUR MILLION DOLLAR GAIN FROM SALE OF ITS W. A. T. S. MARKETING OF AMERICA INCORPORATED UNIT AND A NONRECURRING CHARGE OF THIRTEEN POINT EIGHT MILLION DOLLARS FOR CONSOLIDATION OF DATA PROCESSING OPERATIONS REVENUE FOR THE QUARTER ROSE NEARLY NINETEEN PERCENT TO THREE HUNDRED EIGHTY THREE POINT FOUR MILLION DOLLARS THE COMPANY SAID THAT IT EXPECTS REVENUE AND EARNINGS TO GROW TWENTY PERCENT THIS YEAR NET INCOME FOR NINETEEN NINETY THREE ROSE TWENTY TWO PERCENT TO ONE HUNDRED SEVENTY THREE MILLION DOLLARS OR ONE DOLLAR AND FIFTY SIX CENTS A SHARE FROM ONE HUNDRED FORTY ONE POINT FOUR MILLION DOLLARS OR ONE DOLLAR AND THIRTY CENTS A SHARE IN NINETEEN NINETY TWO REVENUE GREW TWENTY FOUR PERCENT TO ONE POINT FOUR NINE BILLION DOLLARS JERRY SUE OWENS FORTY SEVEN YEARS OLD PRESIDENT OF CUYAHOGA COMMUNITY COLLEGE CLEVELAND WAS NAMED A DIRECTOR OF THIS DISTRIBUTOR OF BEARINGS MECHANICAL AND ELECTRICAL DRIVE SYSTEMS AND RELATED PRODUCTS SHE FILLS A VACANCY ON THE BOARD CREATED BY THE DEATH OF JOHN R. CUNIN IN JULY NINETEEN NINETY THREE THE BOARD'S SIZE REMAINS AT TEN MEMBERS STRIDE RITE CORPORATION REPORTED NET INCOME OF SEVEN POINT FOUR MILLION DOLLARS OR FIFTEEN CENTS A SHARE FOR ITS FOURTH QUARTER ENDED DECEMBER THIRD A SUBSTANTIAL INCREASE OVER YEAR AGO RESULTS WHICH WERE DEPRESSED BY A BIG ONE TIME CHARGE IN THE FISCAL FOURTH QUARTER OF NINETEEN NINETY TWO THE CAMBRIDGE MASSACHUSETTS FOOTWEAR MANUFACTURER HAD NET OF TWO MILLION DOLLARS OR FOUR CENTS A SHARE AFTER A ELEVEN POINT ONE MILLION DOLLAR CHARGE STEMMING FROM THE RELOCATION OF ITS DISTRIBUTION CENTER FROM KENTUCKY TO MASSACHUSETTS REVENUE CLIMBED THREE POINT THREE PERCENT TO ONE HUNDRED ELEVEN POINT ONE MILLION DOLLARS FROM ONE HUNDRED SEVEN POINT FIVE MILLION DOLLARS A YEAR AGO THE COMPANY SAID SALES OF ITS KEDS LINE WERE DOWN THREE PERCENT IN NINETEEN NINETY THREE THE RESULT OF A SHIFT IN CONSUMER PREFERENCE TOWARD LOWER PRICED CANVAS SHOES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SHARES OF STRIDE RITE CLOSED AT SIXTEEN POINT EIGHT SEVEN FIVE DOLLARS UP TWENTY FIVE CENTS FOR THE FULL YEAR IN NINETEEN NINETY THREE STRIDE RITE HAD NET OF FIFTY EIGHT POINT THREE MILLION DOLLARS OR ONE DOLLAR AND FIFTEEN CENTS A SHARE DOWN FIVE POINT TWO PERCENT FROM SIXTY ONE POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND NINETEEN CENTS A SHARE IN NINETEEN NINETY TWO FULL YEAR SALES SLIPPED SLIGHTLY TO FIVE HUNDRED EIGHTY TWO POINT NINE MILLION DOLLARS FROM FIVE HUNDRED EIGHTY FIVE POINT NINE MILLION DOLLARS IN NINETEEN NINETY TWO MIDLAND RESOURCES INCORPORATED MIDLAND TEXAS SAID IT ACQUIRED ALL OF THE COMMON STOCK OUTSTANDING OF MIRESCO INCORPORATED A PRIVATELY HELD AFFILIATE UNDER THE TERMS OF THE AGREEMENT MIDLAND WILL ISSUE A STILL TO BE DETERMINED NUMBER OF SHARES TO DEAS H. WARLEY THE THIRD AND SAL J. PAGANO MIRESCO'S FORMER SHAREHOLDERS NO PURCHASE PRICE HAS BEEN SET THE EXCHANGE IS TO BE BASED ON THE RELATIVE FAIR VALUES OF MIDLAND AND MIRESCO WHICH THE TWO BOARDS WILL DETERMINE AFTER RECEIVING AN OUTSIDE FAIRNESS OPINION THE ISSUANCE OF MIDLAND SHARES WILL OCCUR BY MARCH THIRTY FIRST MIDLAND EXPLORES DEVELOPS AND PRODUCES NATURAL GAS AND OIL PACIFIC GAS AND ELECTRIC COMPANY SAID IT PLANS TO EXPLORE THE POSSIBILITY OF SELLING P. G. AND E. RESOURCES ITS DALLAS BASED OIL AND GAS EXPLORATION AND PRODUCTION COMPANY A SPOKESMAN SAID THE BOARD DETERMINED THAT THE UNIT QUOTE DOESN'T QUITE FIT QUOTE WITH THE COMPANY'S LONG TERM STRATEGY ADDING THAT IT CONTRIBUTES ONLY A QUOTE MINUSCULE QUOTE AMOUNT TO EARNINGS P. G. AND E. RESOURCES IS A SMALL PART OF THE ENERGY CONCERN'S UNREGULATED BUSINESS SECTOR ITS MAJOR UNREGULATED BUSINESS IS INDEPENDENT POWER PLANTS SAN FRANCISCO BASED P. G. AND E. SAID THE COMPANY HAS NO PROSPECTIVE BUYERS BUT THAT IT HAS RETAINED GOLDMAN SACHS AND COMPANY AS FINANCIAL ADVISER IN THE EFFORT GERMAN TIRE MAKER CONTINENTAL A. G. HAS ABANDONED PLANS TO BUILD A NEW HEADQUARTERS BUILDING IN A MOVE TO CHANNEL MORE FUNDS INTO RESEARCH AND DEVELOPMENT LAND ACQUISITION AND CONSTRUCTION COSTS HAVE RISEN SINCE THE HEADQUARTERS IDEA WAS CONCEIVED IN NINETEEN NINETY THE COMPANY SAID AT THE SAME TIME GERMANY'S RECESSION HAS FORCED THE COMPANY TO RETHINK ITS STRATEGY A SPOKESMAN SAID PLANS CALLED FOR AN INVESTMENT OF SIXTY MILLION TO EIGHTY MILLION MARKS THIRTY FOUR MILLION DOLLARS TO FORTY SIX MILLION DOLLARS SINCE THEN LAND COSTS HAVE RISEN IN THE THIRTY THOUSAND SQUARE METER SITE ON THE FAST DEVELOPING OUTSKIRTS OF HANOVER THE PROJECT WOULD NOW COST MORE THAN ONE HUNDRED MILLION MARKS THE COMPANY SAID IN AUGUST NINETEEN NINETY TWO CONTINENTAL SOLD ITS FOURTEEN FLOOR HEADQUARTERS IN THE CITY CENTER ABOUT FOUR HUNDRED FIFTY OF THE ADMINISTRATIVE STAFF HAVE MOVED INTO ONE OF THE COMPANY'S UNUSED TIRE FACTORIES IN HANOVER THAT BUILDING WILL NOW BE THE NEW HEADQUARTERS SYBASE INCORPORATED EMERYVILLE CALIFORNIA SAID NET INCOME CLIMBED SIXTY FOUR PERCENT IN THE FOURTH QUARTER ON A SIXTY SIX PERCENT SALES GAIN AMID ROBUST DEMAND FOR ITS NETWORK SOFTWARE AND SERVICES THE COMPANY EARNED EIGHTEEN MILLION DOLLARS OR THIRTY FOUR CENTS A SHARE COMPARED WITH ELEVEN MILLION DOLLARS OR TWENTY ONE CENTS A SHARE A YEAR AGO SALES ROSE TO ONE HUNDRED THIRTY EIGHT MILLION DOLLARS FROM EIGHTY THREE MILLION DOLLARS THE RESULTS WERE SLIGHTLY HIGHER THAN ANALYSTS' EXPECTATIONS OF THIRTY ONE CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INCORPORATED THE COMPANY SAID REVENUE GROWTH WAS EXPECIALLY STRONG FROM ITS ON LINE SERVICES AND FROM LICENSING OF ITS PRODUCTS FOR NINETEEN NINETY THREE SYBASE EARNINGS ROSE EIGHTY SIX PERCENT TO FORTY FOUR MILLION DOLLARS OR EIGHTY SIX CENTS A SHARE FROM TWENTY FOUR MILLION DOLLARS OR FORTY EIGHT CENTS A SHARE SALES ROSE SIXTY ONE PERCENT TO FOUR HUNDRED TWENTY SEVEN MILLION DOLLARS FROM TWO HUNDRED SIXTY FIVE MILLION DOLLARS IN NASDAQ STOCK MARKET TRADING YESTERDAY SYBASE STOCK CLOSED AT FORTY FIVE DOLLARS UNCHANGED SCIENTISTS AT DUPONT MERCK PHARMACEUTICAL COMPANY SAID THEY DEVELOPED A CLASS OF EXPERIMENTAL AIDS DRUGS DESIGNED WITH A NEW TYPE OF COMPUTER AIDED TECHNOLOGY QUOTE WE THINK IT'S ONE OF THE VERY FIRST EXAMPLES OF NEW MEDICINES DEVELOPED BY THIS NEW DESIGN METHOD QUOTE SAID DAVID JACKSON A LEADING RESEARCHER AT DUPONT MERCK WHICH IS A JOINT VENTURE BETWEEN DUPONT COMPANY IN WILMINGTON DELAWARE AND MERCK AND COMPANY IN WHITEHOUSE STATION N. J. QUOTE DRUG MAKERS HAVE BEEN TALKING ABOUT USING A MORE RATIONAL APPROACH TO DRUGMAKING FOR YEARS AND NOW THE FIRST GENERATION OF THESE DRUGS IS EMERGING QUOTE THE NEW DRUGS BLOCK AN ENZYME CALLED PROTEASE THAT THE VIRUS THAT CAUSES AIDS NEEDS TO REPRODUCE AND SPREAD FROM CELL TO CELL ABOUT A HALF DOZEN COMPANIES HAVE BEEN RACING AFTER PROTEASE BLOCKING MEDICINES SINCE NINETEEN EIGHTY SEVEN BUT UNTIL RECENTLY MOST OF THEM FAILED TO CREATE DRUG MOLECULES SMALL ENOUGH TO REACH CELLS INFECTED BY THE VIRUS IN A REPORT IN THE CURRENT ISSUE OF THE JOURNAL SCIENCE DUPONT MERCK'S SCIENTISTS SAID ANIMAL STUDIES INDICATED THAT THE COMPANY'S DESIGNED DRUG HAD OVERCOME THE SIZE PROBLEM BUT DOCTOR JACKSON SAID THE SPECIFIC DRUGS DESCRIBED IN SCIENCE STILL RAN INTO UNEXPECTED PROBLEMS WHEN ADMINISTERED TO HUMANS LAST SUMMER DOCTOR JACKSON SAID THE COMPANY HAS SINCE DEVELOPED ANOTHER SET OF CANDIDATES USING THE SAME DESIGN TECHNIQUE THAT THE COMPANY BELIEVES WILL FARE BETTER WHEN TESTED IN HUMANS LATER THIS YEAR AT LEAST TWO OTHER DRUG COMPANIES VERTEX PHARMACEUTICALS INCORPORATED AND MERCK ALSO HAVE RECENTLY DEVELOPED EXPERIMENTAL PROTEASE BLOCKERS USING SIMILAR DRUG DESIGN TECHNOLOGY MERCK'S DRUG IS BEING TESTED IN HUMANS AND WELLCOME P. L. C.'S BURROUGHS WELLCOME COMPANY UNIT IS EXPECTED TO BEGIN TESTING THE VERTEX DRUG SOON BROOKLYN UNION GAS COMPANY SAID IT SENT OUT A RECORD ONE POINT OH TWO BILLION CUBIC FEET OF NATURAL GAS TO CUSTOMERS WEDNESDAY IN A NEWS RELEASE BROOKLYN UNION GAS SAID IT WAS THE FIRST TIME IT SENT OUT MORE THAN ONE BILLION CUBIC FEET OF NATURAL GAS IN ONE DAY THE COMPANY ATTRIBUTED THE RECORD DEMAND TO COLD WEATHER GRIPPING THE NORTHEAST WEDNESDAY'S FIGURE WAS AN EIGHT POINT FIVE PERCENT INCREASE FROM THE PREVIOUS RECORD OF NINE HUNDRED FORTY ONE MILLION CUBIC FEET SENT OUT JANUARY TWENTY FIFTH NINETEEN EIGHTY FIVE BROOKLYN UNION SAID IT HAS QUOTE MORE THAN ADEQUATE SUPPLIES QUOTE TO MEET DEMAND FROM ITS ONE POINT ONE MILLION CUSTOMERS TREASURY SECRETARY LLOYD BENTSEN HAS BEEN IN BEIJING IN ADVANCE OF A SHOWDOWN BETWEEN CHINA AND THE U. S. ON THE ISSUE OF HUMAN RIGHTS CONGRESS MUST VOTE EVERY JUNE ON WHETHER TO RENEW CHINA'S MOST FAVORED NATION TRADING STATUS UNDER THE TERMS OF THE EXECUTIVE ORDER PRESIDENT CLINTON ISSUED LAST MAY CHINA MUST MAKE QUOTE SIGNIFICANT PROGRESS QUOTE ON HUMAN RIGHTS POLITICAL FREEDOM AND THE HUMANE TREATMENT OF PRISONERS IN ORDER FOR THE SECRETARY OF STATE TO RECOMMEND RENEWAL OF M. F. N. THERE CAN BE LITTLE QUESTION THAT CHINA HAS MADE NO SUCH PROGRESS THE FEW POLITICAL PRISONERS IT HAS RELEASED IN THE PAST YEAR HAVE TENDED TO HAVE JUST SHORT PERIODS LEFT TO SERVE AND THEY WERE SET FREE JUST BEFORE IMPORTANT EVENTS LAST WEEK TIBETAN ACTIVISTS GENDUN RINCHEN AND LOBSANG YONTEN WERE RELEASED IN ADVANCE OF MR. BENTSEN'S ARRIVAL SUCH CYNICAL GESTURES SERVE AS GRIM REMINDERS OF THE MANY POLITICAL PRISONERS WHO REMAIN IN CHINESE JAILS AND OF THE FACT THAT POLITICAL DISSENT WILL NOT BE TOLERATED IN CHINA INDEED JUST A FEW DAYS BEFORE THE TWO TIBETANS WERE RELEASED CHINA SENTENCED TWELVE TIBETAN NUNS TO UP TO SEVEN YEARS IN PRISON FOR TRYING TO ORGANIZE A PRO INDEPENDENCE RALLY HOW THEN CAN THE U. S. BEST PROD CHINA INTO TREATING ITS OWN CITIZENS WITH GREATER RESPECT AND CIVILITY THE ANSWER IN OUR VIEW LIES NOT IN RESTRICTING TRADE WHICH HURTS THE VERY PEOPLE THE U. S. WANTS TO HELP THE CHINESE WHO WILL SUFFER FROM DIMINISHED TRADING OPPORTUNITIES WITH THE U. S. ARE THE PRIVATE CITIZENS WHO HAVE SEVERED TIES WITH GOVERNMENT AND ARE RISKING EVERYTHING IN THE PRIVATE SECTOR WHERE THEY ARE MAKING GOODS THAT AMERICANS WANT TO BUY MILLIONS OF INDIVIDUALS ARE STRIKING OUT ON THEIR OWN IN CHINA TODAY AND AS THEY DO SO THEY ARE EXPANDING THE BOUNDARIES OF PERSONAL LIBERTY TRADE OUGHT TO BE RECOGNIZED AS AN ESSENTIAL ELEMENT IN ENCOURAGING THESE TRENDS MOREOVER U. S. COMPANIES THAT ARE TRYING TO CRACK THE CHINESE MARKET WILL LOSE IMPORTANT BUSINESS OPPORTUNITIES AMERICAN CONSUMERS ALSO WILL END UP PAYING HIGHER PRICES FOR CHINESE MADE GOODS THERE IS THE DANGER THAT THE REAL MOTIVE FOR M. F. N. PRESSURE IS PROTECTIONISM WITNESS CONGRESSMAN RICHARD GEPHARDT IN BEIJING LAST WEEKEND CARRYING ON ABOUT MARKET ACCESS A PHRASE MANY ASIANS HAVE COME TO INTERPRET AS JUST ANOTHER CODE WORD FOR PROTECTIONISM THERE IS A ROLE FOR HUMAN RIGHTS IN U. S. POLICY TOWARD CHINA BUT THERE ARE FAR MORE EFFECTIVE METHODS THAN TRADE RESTRICTIONS FOR BRINGING CHINA INTO THE INTERNATIONAL COMMUNITY OF CIVILIZED NATIONS ONE IS TO LIMIT LENDING BY THE MULTINATIONAL LENDING AGENCIES SUCH AS THE WORLD BANK THE INTERNATIONAL MONETARY FUND AND THE ASIAN DEVELOPMENT BANK THE HUGE SUMS LENT BY THESE ORGANIZATIONS END UP IN THE HANDS OF THE CENTRAL GOVERNMENT IN BEIJING ENHANCING THE POWER OF THE OFFICIALS WHO DOLE IT OUT TO POLITICALLY CORRECT CRONIES THE U. S. COULD USE ITS LEVERAGE AT ALL OF THESE INSTITUTIONS TO EXPRESS ITS DISPLEASURE WITH THE CHINESE GOVERNMENT BY WITHHOLDING FUNDS THIS IS NOT A POPULAR NOTION TO BE SURE BUT SURELY IT ISN'T TOO OUTRAGEOUS TO NOTE THAT A COUNTRY THAT IS LAGGING BEHIND IN THIS AREA IS LESS DESERVING OF INTERNATIONAL AID THAN OTHER COUNTRIES THAT ARE MAKING PROGRESS ANOTHER WAY FOR THE U. S. TO EXPRESS ITS DISPLEASURE WITH THOSE WHO MAKE POLICY IN BEIJING WOULD BE TO ACKNOWLEDGE PUBLICLY ANOTHER CHINESE SOCIETY THAT IS WELL ON ITS WAY TO FULL DEMOCRACY TAIWAN SENDING OBSERVERS TO THIS MONTH'S ELECTIONS PRESSING FOR TAIWAN'S ENTRY INTO THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND THE UNITED NATIONS INVITING PRESIDENT LEE TENG HUI TO THE WHITE HOUSE SUCH SYMBOLIC ACTIONS WOULD HELP TAIWAN'S INCIPIENT DEMOCRACY AND WEAKEN THE PRESTIGE OF BEIJING'S TOTALITARIAN GOVERNMENT THE MESSAGE THAT MR. BENTSEN IS CARRYING TO BEIJING IS THAT THE CLINTON ADMINISTRATION IS SERIOUS ABOUT SEEKING AN IMPROVEMENT IN CHINA'S HUMAN RIGHTS PERFORMANCE THIS IS THE SAME MESSAGE THAT FORMER PRESIDENT BUSH IS SAID TO HAVE DELIVERED IN HIS PRIVATE VISIT TO CHINA OVER THE WEEKEND AND IT IS THE SAME MESSAGE THAT U. S. SECRETARY OF STATE WARREN CHRISTOPHER WILL CARRY WHEN HE MEETS CHINESE FOREIGN SECRETARY QIAN QICHEN ON MONDAY IN PARIS WE SUPPORT THE MESSAGE BUT WISH THE U. S. WOULD FIND A MORE ECONOMICALLY CONSTRUCTIVE WAY OF BACKING IT UP THE CLIMAX OF JAPAN'S FIVE YEAR BATTLE TO DISMANTLE ITS CORRUPT ARCHAIC POLITICAL SYSTEM IS SCHEDULED FOR TODAY WITH ALL SIDES PROJECTING A TIGHT CONTEST A VICTORY FOR THE REFORMERS IN THE PARLIAMENTARY VOTE WOULD ALTER THE BASIC RULES THAT HAVE GOVERNED JAPANESE POLITICS SINCE WORLD WAR TWO IF THE REFORMS PASS EVENTUALLY QUOTE ALL PARTIES WILL DISSOLVE AND WE WILL BUILD AGAIN NEW PARTIES QUOTE SAYS KAZUO AICHI THE DEFENSE MINISTER IN THE PRO REFORM RULING COALITION THE NEXT PHASE OF POLITICAL TURMOIL WILL START SAYS GERALD L. CURTIS A JAPANESE POLITICS EXPERT AT COLUMBIA UNIVERSITY EVERYTHING HAS BEEN IN A STATE OF SUSPENDED ANIMATION WAITING TO SEE WHAT WILL HAPPEN WITH THESE BILLS MANY ANALYSTS ESTIMATE THE RULING SEVEN PARTY COALITION HAS THE NECESSARY STRENGTH TO PASS THE BILLS IN THE VOTE SLATED IN THE UPPER HOUSE OF PARLIAMENT THE FOUR BILLS WON COMMITTEE APPROVAL BY AN EIGHTEEN TO SIXTEEN VOTE YESTERDAY BREAKING THE LOGJAM THAT HAS KEPT THEM ON HOLD SINCE PASSING THE LOWER HOUSE TWO MONTHS AGO THE JAPANESE MEDIA LAST NIGHT PREDICTED THE VOTE WILL BE CLOSE WITH LIKELY DEFECTIONS THREATENING THE GOVERNMENT'S THIN PARLIAMENTARY MAJORITY SUCCESS WILL HINGE ON THE COALITION'S ABILITY TO LURE TURNCOATS FROM THE OPPOSITION I'M CONFIDENT TRADE MINISTER HIROSHI KUMAGAI SAID BUT ONLY THE GODS KNOW FOR SURE JAPANESE BUSINESS LEADERS AS WELL AS THE CLINTON ADMINISTRATION ARE ROOTING FOR A TRIUMPH AS SOON AS POSSIBLE MAINLY SO THE JAPANESE GOVERNMENT CAN FINALLY MOVE ON TO OTHER MATTERS SUCH AS JAPAN'S SLUMPING ECONOMY AND STALLED U. S. JAPAN TRADE TALKS PARLIAMENT'S PREOCCUPATION WITH POLITICAL REFORM HAS VIRTUALLY FROZEN POLICY MAKING SINCE NOVEMBER PLANS FOR DRAFTING THE ANNUAL BUDGET ARE A MONTH BEHIND SCHEDULE AND THE TIMING FOR ANNOUNCING A WIDELY EXPECTED TAX CUT HAS SLIPPED BY SEVERAL WEEKS THE GOVERNMENT HAS BEEN SLOW TO DEAL WITH THE ECONOMY KOSAKU INABA HEAD OF THE JAPAN CHAMBER OF COMMERCE AND INDUSTRY GRIPED URGING POLITICIANS TO END THEIR SQUABBLING THE U. S. MEANWHILE WILL GIVE THE JAPANESE GOVERNMENT LITTLE TIME TO CELEBRATE TREASURY SECRETARY LLOYD BENTSEN HAS MADE A LAST MINUTE DECISION TO STOP IN TOKYO SUNDAY ON HIS WAY HOME FROM AN ASIAN TOUR IN ORDER TO PRESS JAPAN'S LEADERS TO WORK HARDER ON DRAFTING A NEW QUOTE FRAMEWORK QUOTE FOR BILATERAL TRADE THE TWO COUNTRIES WANT AN AGREEMENT BY THE TIME PRIME MINISTER MORIHIRO HOSOKAWA VISITS PRESIDENT CLINTON IN WASHINGTON FEBRUARY ELEVENTH THE IMPETUS FOR JAPAN'S REFORM MOVEMENT WAS THE ENDLESS STRING OF FINANCIAL SCANDALS DURING MORE THAN THREE DECADES OF LIBERAL DEMOCRATIC PARTY RULE TO THAT END THE PROPOSED LAWS WOULD REWRITE CAMPAIGN FINANCING RULES CURBING CORPORATE DONATIONS TO INDIVIDUAL POLITICIANS AND PROVIDING PUBLIC FUNDS TO POLITICAL PARTIES BUT LOOPHOLES WOULD REMAIN AND SKEPTICS DOUBT THAT THE COUNTRY'S NOTORIOUS MONEY POLITICS WILL DISAPPEAR SO EASILY THE PACKAGE'S MOST SIGNIFICANT CHANGE WIPES OUT THE OLD ELECTORAL SYSTEM IT REPLACES JAPAN'S MULTISEAT DISTRICTS WITH A COMBINATION OF SINGLE SEAT DISTRICTS AND SEATS CHOSEN THROUGH A NATIONAL PROPORTIONAL REPRESENTATION VOTE IT ALSO WOULD REDRAW THE BOUNDARIES OF ALL ELECTORAL DISTRICTS OUR AIM IS TO DESTROY THE POLITICAL WAYS OF THE PAST FORTY YEARS SAYS YURIKO KOIKE A FOUNDING MEMBER OF MR. HOSOKAWA'S JAPAN NEW PARTY WHICH WAS LAUNCHED NEARLY TWO YEARS AGO WITH THE GOAL OF ALTERING THE POLITICAL SYSTEM THE AIM OF OUR REFORM IS THAT POLITICIANS SHOULD BE POLITICIANS MS. KOIKE ADDS THAT SOUNDS LIKE A JOKE BUT IF YOU KNOW THE SITUATION IN JAPAN YOU KNOW THAT'S NOT A JOKE INDEED THE WAY IN WHICH MR. HOSOKAWA'S COALITION HAS PROMOTED THE REFORM BILLS REFLECTS A NEW POLITICAL STYLE EVEN WHEN THE L. D. P. HAD A STRONG PARLIAMENTARY MAJORITY IT RARELY PUT ISSUES TO AN OPEN VOTE INSTEAD PREFERRING TO SEEK A CONSENSUS WITH THE OPPOSITION THROUGH BACKROOM NEGOTIATIONS THOUGH MR. HOSOKAWA HAS SOUGHT COMPROMISE WITH THE L. D. P. THIS WEEK HE HASN'T HESITATED TO FORCE A VOTE AS HE DID IN YESTERDAY'S COMMITTEE CONTEST THE L. D. P. HAS LABELED SUCH TACTICS FASCISM MANY PROMINENT MUTUAL FUND MANAGERS ARE MOONLIGHTING AS CORPORATE DIRECTORS TAKING TIME OUT FROM THEIR REGULAR JOBS TO SIT ON THE BOARDS OF SMALL COMPANIES THE PRACTICE REVEALED IN REGULATORY FILINGS IS FRAUGHT WITH POTENTIAL CONFLICTS OF INTEREST FOR INSTANCE SOME OF THESE DIRECTORS GET STOCK OPTIONS A VERY LUCRATIVE PROPOSITION FOR THEM IF THE LITTLE STOCK BECOMES A HIGHFLIER A LOOK THROUGH THE FILINGS SHOWS THAT JOHN KAWESKE ISN'T ALONE IN TAKING A BOARDROOM ROLE THAT MIGHT CLASH WITH THE JOB OF FUND MANAGER MR. KAWESKE FIRED BY INVESCO FUNDS GROUP FOR FAILING TO REPORT SOME PERSONAL STOCK TRADES HAS BEEN SERVING ON THE BOARD OF A CANADIAN BIOTECH COMPANY CONFLICTS CAN ARISE IN SEVERAL WAYS A MANAGER MIGHT HESITATE TO DUMP A COMPANY'S STOCK FROM A FUND WHILE SITTING ON THAT COMPANY'S BOARD WAITING FOR PERSONAL OPTIONS TO RISE IN VALUE THAT'S THE SITUATION FACING MARTIN WHITMAN OF THIRD AVENUE VALUE FUND WITH ASSETS OF ONE HUNDRED FOURTEEN MILLION DOLLARS HE SERVES NOT ONLY ON THE BOARD BUT AS CHAIRMAN OF A FINANCIAL COMPANY THAT HAS GIVEN HIM STOCK OPTIONS AND HE PERSONALLY OWNS A CHUNK OF STOCK AS A DIRECTOR OF DANIELSON HOLDING CORPORATION NEW YORK HE EARNS QUOTE ONLY SEVENTY FIVE THOUSAND DOLLARS QUOTE ACCORDING TO LAST SPRING'S PROXY MATERIAL BUT STOCK OPTIONS PROMISE TO GIVE HIM MUCH MORE HE RECEIVED OPTIONS TO PURCHASE TWO HUNDRED TEN THOUSAND SHARES AT THREE DOLLARS APIECE THE NINETEEN NINETY THREE PROXY MATERIAL SHOWS WITH THE STOCK NOW AT SEVEN DOLLARS AND FIFTY CENTS ON THE AMERICAN STOCK EXCHANGE MR. WHITMAN HAS A PAPER PROFIT OF NINE HUNDRED FORTY FIVE THOUSAND DOLLARS AND A BIG INCENTIVE TO AVOID HAVING HIS FUND DUMP THE STOCK MR. WHITMAN ARGUES THAT IT ISN'T AS IF HIS WHOLE LIFE DEPENDED ON ONE STOCK MY FAMILY AND I OWN MAYBE FOUR MILLION DOLLARS IN THIRD AVENUE FUND HE SAYS I EAT MY OWN COOKING MOREOVER IN DANIELSON'S CASE I WAS ABLE TO MAKE WHAT I THOUGHT WAS A REAL BARGAIN PURCHASE FOR THE FUND AT A LOWER COST PER SHARE THAN HIS PERSONAL INVESTMENT MR. WHITMAN SAYS HIS PERSONAL HOLDINGS IN A PREDECESSOR COMPANY GO BACK TO NINETEEN EIGHTY FIVE SIX YEARS BEFORE THE FUND EVER INVESTED NOW THIRD AVENUE VALUE OWNS FIVE POINT THREE PERCENT OF DANIELSON STOCK AND MR. WHITMAN CONTROLS NINETEEN PERCENT IN TOTAL INCLUDING THE FUND'S STAKE IT'S HARD FOR ME TO SEE HOW A CONFLICT COULD HAPPEN BETWEEN THIRD AVENUE AND DANIELSON BUT I GUESS IT COULD THE MANAGER SAYS IT CAN BE AWKWARD TO HAVE INSIDE INFORMATION ABOUT A STOCK IN WHICH YOUR FUND IS INVESTED LAST YEAR WHEN THIRD AVENUE VALUE FUND OWNED STOCK IN TROUBLED KENTUCKY CENTRAL LIFE INSURANCE COMPANY TWO PARTNERSHIPS AFFILIATED WITH MR. WHITMAN WERE BIDDING TO INFUSE A SORELY NEEDED ONE HUNDRED MILLION DOLLARS BUT IN FEBRUARY NINETEEN NINETY THREE THEY CANCELED THAT PLAN TO INVEST THE INSURER'S STOCK COLLAPSED AND WITHIN DAYS THE KENTUCKY INSURANCE COMMISSIONER TOOK OVER THE FIRM IN THIS CASE THE NETTLESOME QUESTION WAS GIVEN MR. WHITMAN'S CENTRAL ROLE HOW COULD THE FUND BAIL OUT OF THE STOCK BEFORE THE DAMAGE OCCURRED LEGALLY IT COULDN'T MR. WHITMAN SAYS THE MUTUAL FUND HAD TO SUFFER THROUGH THE STOCK PRICE DIVE HOLDING ONE HUNDRED EIGHTY SIX THOUSAND SHARES SINCE SELLING BEFORE THE PUBLIC ANNOUNCEMENT WOULD HAVE VIOLATED INSIDER TRADING LAWS HOWEVER MR. WHITMAN SAYS HE ISN'T SURE WHICH DAY THE FUND SOLD KENTUCKY CENTRAL QUOTE I DON'T READILY HAVE THE DATA QUOTE SECURITIES AND EXCHANGE COMMISSION FILINGS BY THE FUND SHOW IT WAS SOMETIME IN THE THREE MONTHS THROUGH APRIL THIRTIETH THE PERIOD WHEN THE BAILOUT PLAN FELL THROUGH SOMETIMES CONFLICTS ARISE THAT A MANAGER CAN'T FORESEE BESIDES GETTING PERSONAL OPTIONS ONE FUND MANAGER BOUGHT SHARES OUTRIGHT AT A CHEAPER PRICE THAN THE FUND DID WHICH SOUNDS LIKE A CONFLICT EVEN THOUGH HE SAYS HE NEVER INTENDED THINGS TO TURN OUT THAT WAY HE IS WILLIAM NASGOVITZ CO MANAGER OF HEARTLAND VALUE FUND WITH ASSETS OF ONE HUNDRED SIXTY THREE MILLION DOLLARS THE STOCK IS MILWAUKEE MANUFACTURER REXWORKS INCORPORATED MR. NASGOVITZ SAYS HE PERSONALLY BOUGHT OVER TWO HUNDRED THOUSAND SHARES WAITING UNTIL LONG AFTER HIS FUND HAD ALREADY BOUGHT IN AND ACQUIRED ONE HUNDRED SEVENTY FIVE THOUSAND FIVE HUNDRED SHARES A NINE POINT FOUR ONE PERCENT STAKE BUT MR. NASGOVITZ SAYS HE PAID A LOWER PER SHARE PRICE THAN THE FUND DID THE REASON REXWORKS WAS IN CRISIS AND ITS STOCK WAS PLUNGING I FELT SOME MORAL RESPONSIBILITY BELIEVE IT OR NOT SAYS MR. NASGOVITZ HE HAD BEEN INSTRUMENTAL IN TAKING REXWORKS PUBLIC WHEN HE WAS PRESIDENT OF MILWAUKEE COMPANY A REGIONAL BROKERAGE FIRM IN NINETEEN EIGHTY SEVEN WHEN HE BEGAN BUYING THE STOCK PERSONALLY IN NINETEEN EIGHTY NINE IT LOOKED TO ME LIKE THE COMPANY WAS GOING TO GO BROKE HE SAYS I HAD TO BE THE CATALYST FOR CHANGE BECAUSE NOBODY ELSE WAS GOING TO DO IT MR. NASGOVITZ AND OTHER DISSIDENT SHAREHOLDERS SUCCEEDED IN THROWING OUT THE OLD MANAGEMENT IN A PROXY FIGHT NOW HE'S A MEMBER OF THE COMPENSATION COMMITTEE OF THE REXWORKS BOARD ACCORDING TO LAST APRIL'S PROXY MATERIAL THIS COMMITTEE AWARDED OPTIONS DURING NINETEEN NINETY TWO EACH INDEPENDENT DIRECTOR SUCH AS MR. NASGOVITZ GOT OPTIONS TO BUY SEVEN THOUSAND FIVE HUNDRED REXWORKS SHARES FOR TWO DOLLARS AND SIXTY NINE CENTS APIECE THE SHARES HAVE SINCE RISEN TO FOUR POINT EIGHT SEVEN FIVE DOLLARS ON THE NASDAQ STOCK MARKET ALL TOLD AS OF LAST APRIL'S PROXY MATERIAL MR. NASGOVITZ HAD OPTIONS TO BUY A TOTAL OF FIFTEEN THOUSAND REXWORKS SHARES IT'S A DIFFICULT SITUATION NO DOUBT ABOUT IT HE SAYS QUOTE BUT I BELIEVE I PROTECTED THE FUND'S ASSETS BY TAKING THIS POSITION QUOTE WHEN IT COMES TO WHAT'S A CONFLICT OF INTEREST AND WHAT'S NOT FUND MANAGERS AT DIFFERENT COMPANIES DON'T FOLLOW THE SAME SCRIPT AN EXAMPLE IS ROBERT GINTEL CHAIRMAN OF GINTEL FUND WHO FOUGHT A PROXY BATTLE AWHILE BACK WITH XTRA CORPORATION A BOSTON COMPANY THAT LEASES OUT TRAILERS FOR HAULING CARGO UNLIKE MR. NASGOVITZ THIS MANAGER SAYS HE FELT COMPELLED TO SELL HIS FUND'S HOLDINGS OF XTRA AND DID SO BEFORE BEGINNING A PROXY FIGHT I COULDN'T START A PROXY CONTEST IF THE FUND HELD THE SHARES HE OPINES WITH THE PROXY CONTEST WON MR. GINTEL NOW SITS ON THE BOARD OF XTRA AS VICE CHAIRMAN GINTEL FUND HAS ASSETS OF ONE HUNDRED FORTY FOUR MILLION DOLLARS MR. GINTEL ALSO IS CHAIRMAN OF ONEITA INDUSTRIES AN ANDREWS S. C. MAKER OF T. SHIRTS WHOSE STOCK GINTEL FUND OWNS HE SAYS HE BOUGHT NINE HUNDRED THOUSAND SHARES PERSONALLY MORE THAN TWELVE PERCENT OF ONEITA'S STOCK ON OCTOBER SIXTH NINETEEN NINETY THREE SEVERAL YEARS EARLIER GINTEL FUND HAD BOUGHT SIX HUNDRED SIXTY FIVE THOUSAND SHARES MR. GINTEL SAYS HE BOUGHT THE SHARES PERSONALLY BECAUSE THE PEOPLE WHO CONTROLLED ONEITA WERE SELLING TWENTY FIVE PERCENT OF THE STOCK WHICH PUT THE COMPANY ON THE BLOCK AND HURT THE COMPANY WITH CUSTOMERS MR. GINTEL HAS OPTIONS ON MORE THAN TWO THOUSAND SHARES OF XTRA STOCK AND DOESN'T HAVE ANY OPTIONS ON ONEITA WHERE HE DRAWS A SALARY OF FIFTY THOUSAND DOLLARS AT ONEITA I'LL MAKE MY MONEY WHEN THE STOCK GOES UP ALONG WITH EVERYBODY ELSE HE SAYS IF WE CAN ENGINEER A TURNAROUND IN ONEITA AS WE DID IN XTRA FUND SHAREHOLDERS WILL BE PLEASED HE SAYS BESIDES WE ONLY DID IT WITH THE APPROVAL OF THE INDEPENDENT TRUSTEES I. E. DIRECTORS OF THE FUND SOME MANAGERS WHO HOLD PERSONAL STOCK AND OPTIONS IN A COMPANY TRY TO KEEP SOME DISTANCE BETWEEN THAT COMPANY AND THEIR MUTUAL FUND IS THAT GOOD OR BAD FOR THE FUND IT DEPENDS ON WHETHER THE STOCK IS A JEWEL OR A DOG LAWRENCE AURIANA CO MANAGER OF THE STRONG PERFORMING KAUFMANN FUND WITH ASSETS OF ONE BILLION DOLLARS IS CHAIRMAN OF MEDIWARE INFORMATION SYSTEMS A SMALL HOSPITAL SOFTWARE COMPANY IT SOUNDS LIKE JUST THE SORT OF STOCK HIS FUND MIGHT WANT TO BUY HANS UTSCH THE OTHER MANAGER OF THE FUND IS ALSO ON THE BOARD BUT KAUFMANN FUND DELIBERATELY HASN'T INVESTED IN THE STOCK QUOTE I DON'T THINK WE CAN BUY MEDIWARE FOR THE FUND QUOTE MR. AURIANA SAYS IT'S S. E. C. RULES PLUS IT'S JUST COMMON SENSE AS WELL AND EVEN IF THERE'S NO SPECIFIC S. E. C. RULE FOR THIS SITUATION HE SAYS IT WOULD BE A CONFLICT OF INTEREST ANYWAY MESSRS AURIANA AND UTSCH GOT ON THE BOARD OF MEDIWARE WHEN WE WERE IN THE VENTURE CAPITAL BUSINESS AT BOWLING GREEN SECURITIES THEIR PRIOR EMPLOYER SAYS MR. AURIANA HE HAS OPTIONS ON TWELVE THOUSAND FIVE HUNDRED SHARES AND MR. UTSCH HAS OPTIONS ON THREE THOUSAND THREE HUNDRED SHARES WHY STAY ON THE BOARD OF AN OPERATING COMPANY WHILE WORKING AS A FUND MANAGER THE ADVANTAGE OF CONTINUING TO HAVE THIS EXPOSURE IS WE NEVER FORGET HOW DIFFICULT IT IS FOR SMALL VENTURE COMPANIES AND SMALL COMPANIES IN GENERAL TO SUCCEED MR. AURIANA SAYS MEDIWARE HAS STRUGGLED CONTINUOUSLY AND THAT'S ONE OF THE BEST EDUCATIONS SOME FUND MANAGERS SERVING ON BOARDS DO SO AT FOREIGN COMPANIES OR NONPUBLIC BUSINESSES TO AVOID POTENTIAL CONFLICTS OF INTEREST JOHN NEFF THE HIGHLY REGARDED MANAGER OF VANGUARD SLASH WINDSOR IS ON THE BOARD OF GENERAL ACCIDENT LIFE INSURANCE COMPANY THE U. S. SUBSIDIARY OF A COMPANY BASED IN PERTH SCOTLAND VANGUARD SAYS WINDSOR WHOSE ASSETS AMOUNT TO TEN POINT FIVE BILLION DOLLARS HASN'T EVER INVESTED IN THE SCOTTISH PARENT AND WON'T IN THE FUTURE MR. NEFF TOOK THE POST BECAUSE HE WAS INVITED AND FELT IT WAS PROPER TO DO SO BECAUSE THE SUBSIDIARY WASN'T PUBLICLY TRADED HE CONCLUDED QUOTE THERE WOULDN'T BE ANY CONFLICT QUOTE WITH HIS ROLE AS FUND MANAGER SAYS A VANGUARD SPOKESMAN HE ADDS THAT MR. NEFF DOESN'T GET OPTIONS FROM BEING ON THE BOARD ANOTHER MANAGER WHOSE MUTUAL FUNDS AREN'T INVESTORS IN ONE OF HIS BIG PERSONAL HOLDINGS IS MARIO GABELLI HE IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LYNCH CORPORATION A GREENWICH CONNECTICUT GLASS MACHINERY AND COMMUNICATIONS CONCERN WHOSE SHARES ARE PUBLICLY TRADED MR. GABELLI TOOK THE HELM OF LYNCH IN NINETEEN EIGHTY SIX THE YEAR HE ALSO STARTED UP HIS FIRST MUTUAL FUND PROXY MATERIAL INDICATES THAT MR. GABELLI CONTROLS NEARLY FORTY PERCENT OF LYNCH STOCK INCLUDING THE SHARES HELD IN PRIVATE ACCOUNTS HE MANAGES THROUGH INVESTMENT MANAGER GAMCO INVESTORS INCORPORATED THIS SITUATION RAISES A LESS OBVIOUS PROBLEM IF IT'S SUCH A GOOD INVESTMENT THAT A SMART INVESTOR LIKE MR. GABELLI HAS GRABBED A BIG STAKE WHY DON'T HIS MUTUAL FUNDS OWN LYNCH STOCK TOO THEY'RE TRYING TO AVOID A CONFLICT OF INTEREST AN ASSISTANT TO MR. GABELLI SAYS THE MUTUAL FUNDS ARE PROHIBITED FROM BUYING LYNCH AS CHAIRMAN AND C. E. O. MR. GABELLI DREW COMPENSATION OF ONE HUNDRED FIFTY THOUSAND DOLLARS FROM LYNCH IN NINETEEN NINETY TWO WHICH THE PROXY STATEMENT CALLS MATERIALLY BELOW THAT OF CHIEF EXECUTIVE OFFICERS OF COMPARABLE COMPANIES IT ADDS THAT LYNCH IS STUDYING ALTERNATIVES TO PROVIDE MR. GABELLI AND THE EXECUTIVE STAFF WITH LONG TERM INCENTIVES THE DOW JONES INDUSTRIAL AVERAGE EDGED TO ANOTHER RECORD AMID MIXED ECONOMIC NEWS BOND PRICES ROSE AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIALS GAINED SEVEN POINT FIVE NINE POINTS TO THREE THOUSAND EIGHT HUNDRED NINETY ONE POINT NINE SIX THE YEAR'S EIGHTH RECORD STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX ROSE ZERO POINT SIX EIGHT TO FOUR HUNDRED SEVENTY FOUR POINT NINE EIGHT LESS THAN A POINT FROM ITS HIGH THE NASDAQ COMPOSITE INDEX CLIMBED THREE POINT SEVEN FOUR TO SEVEN HUNDRED NINETY THREE POINT OH TWO EKING OUT A RECORD THE INDUSTRIAL AVERAGE HIT A HIGH DESPITE SOME DISTINCTLY MIXED ECONOMIC NEWS ON THE POSITIVE SIDE THE COMMERCE DEPARTMENT SAID HOUSING STARTS SOARED SIX POINT TWO PERCENT IN DECEMBER AS NINETEEN NINETY THREE'S HOUSING STARTS HIT THEIR HIGHEST LEVEL IN FOUR YEARS QUOTE THE DECEMBER HOUSING NUMBERS WERE NOTHING SHORT OF SPECTACULAR QUOTE SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY BUT HE ARGUED THAT THE MORE IMPORTANT ECONOMIC REPORT WAS THE ONE SHOWING A LARGE INCREASE IN INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE DURING THE WEEK ENDED JANUARY FIFTEENTH HE NOTED THAT THE CLAIMS DATA ARE PART OF THE INDEX OF LEADING INDICATORS AND MORE RECENT THAN THE HOUSING STARTS DATA CLAIMS FOR UNEMPLOYMENT INSURANCE APPEAR TO BE RISING SINCE DECEMBER TWENTY FIFTH SUGGESTING THAT THE ECONOMIC STRENGTH OF THE FOURTH QUARTER WILL NOT CARRY OVER INTO THE FIRST QUARTER HE SAID THE MARKETS SEEM TO BE REFLECTING THAT CONCLUSION EVEN THOUGH THE INDUSTRIALS HIT A HIGH STOCKS' PERFORMANCE WAS UNCONVINCING MR. JOHNSON SAID AT THE SAME TIME BOND PRICES OVERCAME AN INITIAL DECLINE ON THE STRONG HOUSING STARTS DATA AND CLIMBED IN EXPECTATION THAT A SLOWER ECONOMY WILL FORESTALL AN INCREASE IN INTEREST RATES BY THE FEDERAL RESERVE HE ADDED WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ADVANCED ZERO POINT ONE SEVEN TO ONE HUNDRED FOURTEEN POINT THREE EIGHT STOCK PRICES ROSE VOLUME TOTALED THREE HUNDRED TEN POINT FOUR MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND ONE HUNDRED TEN ISSUES ROSE AND NINE HUNDRED SIXTY FELL BOND PRICES CLIMBED THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE GAINED MORE THAN THREE EIGHTHS POINT OR OVER THREE DOLLARS AND SEVENTY FIVE CENTS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT TWO SIX PERCENT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN THREE EIGHT OH MARKS AND ONE HUNDRED ELEVEN POINT FOUR OH YEN COMPARED WITH ONE POINT SEVEN FOUR SIX OH MARKS AND ONE HUNDRED ELEVEN POINT THREE FIVE YEN WEDNESDAY HOUSING STARTS ROSE SIX POINT TWO PERCENT LAST MONTH THE COMMERCE DEPARTMENT SAID PUSHING HOMEBUILDING FOR NINETEEN NINETY THREE TO ITS HIGHEST LEVEL IN FOUR YEARS DECEMBER STARTS PUNCTUATED A BRISK FOURTH QUARTER SURGING TO AN ANNUAL RATE OF ONE MILLION FIVE HUNDRED FORTY THOUSAND FROM A REVISED ONE MILLION FOUR HUNDRED FIFTY THOUSAND IN NOVEMBER THE DEPARTMENT SAID FOR ALL OF NINETEEN NINETY THREE HOUSING STARTS TOTALED ONE MILLION TWO HUNDRED EIGHTY FIVE THOUSAND ONE HUNDRED UNITS UP SEVEN POINT ONE PERCENT FROM ONE MILLION ONE HUNDRED NINETY NINE THOUSAND SEVEN HUNDRED IN NINETEEN NINETY TWO AND THE HIGHEST SINCE NINETEEN EIGHTY NINE WHEN WORK WAS BEGUN ON ONE MILLION THREE HUNDRED SEVENTY SIX THOUSAND ONE HUNDRED UNITS ECONOMISTS ATTRIBUTED THE STRONG GROWTH TO A GENERALLY BETTER ECONOMY LOW MORTGAGE RATES AND STABLE HOUSING PRICES FACTORS THAT MAKE HOMES NOT ONLY MORE AFFORDABLE BUT ALSO A BETTER INVESTMENT CONSUMERS ARE WILLING TO QUOTE PUT THEIR MONEY IN AN ASSET THAT IS NOT DEPRECIATING QUOTE EXPLAINED JOSEPH LIRO CHIEF ECONOMIST FOR S. G. WARBURG DOCTOR LIRO BELIEVES THAT LAST YEAR'S GROWTH WASN'T A ONE SHOT DEAL AND THAT HOUSING STARTS WILL RUN AT AN ANNUAL RATE OF NEARLY ONE POINT FIVE MILLION BY THE END OF NINETEEN NINETY FOUR STILL ANALYSTS WARN THAT THIS MONTH'S FIGURES MIGHT NOT BE SO GOOD WITH THE COLD WAVE IMPAIRING CONSTRUCTION IN MUCH OF THE COUNTRY HOWEVER THIS EFFECT WILL REVERSE WHEN THE WEATHER GETS BETTER SAID BRUCE STEINBERG SENIOR ECONOMIST AT MERRILL LYNCH AND COMPANY THE LOS ANGELES EARTHQUAKE MIGHT HOLD DOWN STARTS IN JANUARY THOUGH REBUILDING MIGHT BOOST THEM LATER ON MR. STEINBERG SUGGESTED THAT THE EARTHQUAKE'S EFFECT WOULD BE TOO LOCALIZED TO HAVE A SIGNIFICANT IMPACT ON NATIONAL HOUSING START FIGURES BUILDING PERMITS FOR FUTURE CONSTRUCTION ROSE SEVEN POINT THREE PERCENT IN DECEMBER THE COMMERCE DEPARTMENT SAID A FURTHER INDICATION THAT THE UPSWING IN HOMEBUILDING ISN'T TEMPORARY HOMEBUILDING OFTEN IS A MEASURE OF HOW WELL THE OVERALL ECONOMY IS DOING AND THE LATEST FIGURES BODE WELL FOR THE CURRENT RECOVERY WHEN STARTS GO UP AND PERMITS GO UP WE KNOW THIS IS NOT A MOMENTARY RECOVERY DECLARED BOB DAVIS CHIEF ECONOMIST OF SAVINGS AND COMMUNITY BANKERS OF AMERICA IN DECEMBER STARTS OF SINGLE FAMILY HOMES CLIMBED A SOLID THREE POINT FIVE PERCENT TO AN ANNUAL RATE OF ONE MILLION THREE HUNDRED THIRTY THOUSAND STARTS OF APARTMENT BUILDINGS OF FIVE OR MORE UNITS WHICH VARY WIDELY FROM MONTH TO MONTH ZOOMED THIRTY FOUR PERCENT IN DECEMBER TO AN ANNUAL RATE OF ONE HUNDRED SEVENTY SEVEN THOUSAND UNITS SMALLER MULTIFAMILY UNITS HELD STEADY AT A RATE OF THIRTY THREE THOUSAND DECEMBER FIGURES WERE UP IN EVERY REGION EXCEPT THE NORTHEAST WHERE HOMEBUILDING CONTRACTED BY THREE POINT FIVE PERCENT FROM NOVEMBER THE WEST WHERE STARTS HAVE BEEN CLIMBING AFTER BEING DEPRESSED BY THE LONG CALIFORNIA ECONOMIC SLUMP POSTED THE SHARPEST INCREASE FOURTEEN POINT SEVEN PERCENT FROM NOVEMBER IN A SEPARATE REPORT THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS ROSE TWENTY THREE THOUSAND LAST WEEK TO THREE HUNDRED EIGHTY THOUSAND FROM A REVISED THREE HUNDRED FIFTY SEVEN THOUSAND THE WEEK BEFORE THE FOUR WEEK AVERAGE OF WEEKLY CLAIMS CONSIDERED A BETTER SIGNAL OF LABOR MARKET CONDITIONS ROSE TWELVE THOUSAND FIVE HUNDRED TO THREE HUNDRED FORTY SIX THOUSAND SEVEN HUNDRED FIFTY FIGURES IN BOTH REPORTS HAVE BEEN ADJUSTED FOR SEASONAL VARIATIONS SEPARATELY THE PRESIDENT OF THE SAN FRANCISCO FEDERAL RESERVE BANK SAID HE DOESN'T EXPECT ECONOMIC GROWTH THIS QUARTER TO MATCH THE TORRID PACE OF THE NINETEEN NINETY THREE FOURTH QUARTER IN REMARKS PREPARED FOR DELIVERY IN RENO NEVADA ROBERT PARRY NOTED THAT WHILE MOST ESTIMATES PUT ECONOMIC GROWTH AT A FIVE PERCENT ANNUAL RATE IN THE FOURTH QUARTER IT'S UNLIKELY THAT THIS RATE OF GROWTH WILL CONTINUE HE ESTIMATED THAT ABOUT TWO PERCENTAGE POINTS OF THE FOURTH QUARTER SURGE CAN BE ATTRIBUTED TO AN INCREASE IN AUTO PRODUCTION THAT WAS DESIGNED TO REPLENISH DEPLETED INVENTORIES A FACTOR THAT ISN'T LIKELY TO RECUR MR. PARRY WHO IS AMONG THE FIVE REGIONAL FED BANK PRESIDENTS WITH A VOTE ON MONETARY POLICY THIS YEAR ANTICIPATES TWO AND ONE HALF PERCENT GROWTH SMALL REDUCTIONS IN THE UNEMPLOYMENT RATE AND A FURTHER MODERATE REDUCTION IN INFLATION IN NINETEEN NINETY FOUR WITH A GOOD DEAL OF THE SLACK IN THE ECONOMY ELIMINATED CONTINUED RAPID GROWTH COULD LEAD TO HIGHER INFLATION IN THE FUTURE MR. PARRY SAID QUOTE A PERIOD OF MODERATE GROWTH WOULD BE AN EXCELLENT OUTCOME QUOTE THE CORPORATE EMPIRE CONTROLLED BY TORONTO'S BRONFMAN FAMILY WAS HIT BY MORE BIG WRITE DOWNS TOTALING FOUR HUNDRED THIRTY THREE POINT FIVE MILLION CANADIAN DOLLARS THREE HUNDRED THIRTY POINT NINE MILLION U. S. DOLLARS REFLECTING EFFORTS BY THE GROUP TO FINALLY PUT BEHIND IT THE PROBLEMS OF RECENT YEARS IN ITS REAL ESTATE HOLDINGS THE BULK OF THE WRITE DOWNS OR THREE HUNDRED FORTY POINT NINE MILLION CANADIAN DOLLARS RELATES TO TRIZEC CORPORATION A CALGARY ALBERTA DEVELOPER THAT IS CURRENTLY NEGOTIATING WITH ITS CREDITORS TO RESTRUCTURE SOME ONE POINT NINE BILLION CANADIAN DOLLARS OF DEBT OTHER WRITE DOWNS IN THE GROUP REFLECT DECLINING VALUES OF PROPERTIES MAINLY IN CALIFORNIA THAT ARE HELD BY OTHER COMPANIES IN THE GROUP AFTER TWO CONSECUTIVE YEARS OF BIG WRITE DOWNS ON ITS PROPERTY ASSETS THE BRONFMAN GROUP IS SIGNALING THAT IT BELIEVES THE BLEEDING IS STANCHED QUOTE WE'VE HIT A LOT OF THESE INVESTMENTS VERY HARD WITH WRITE DOWNS BOTH LAST YEAR AND THIS YEAR I'M VERY HOPEFUL WE'VE SEEN THE END OF IT THERE ARE SOME SIGNS THE INDUSTRY IS BEGINNING TO EMERGE FROM A FOUR YEAR PROPERTY SLUMP SAID GORDON ARNELL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CARENA DEVELOPMENTS LIMITED THE KEY HOLDING COMPANY IN THE BRONFMANS' REAL ESTATE INTERESTS TORONTO FINANCIERS PETER AND EDWARD BRONFMAN ALSO HAVE INTERESTS IN FINANCIAL SERVICES AND NATURAL RESOURCES THE BROTHERS ARE COUSINS OF MONTREAL'S BRONFMAN FAMILY WHICH CONTROLS THE SEAGRAM COMPANY DISTILLING DYNASTY BUT THE TWO FAMILIES HAVE NO BUSINESS OPERATIONS IN COMMON THE WRITE DOWNS DIDN'T COME AS A SURPRISE TRIZEC WHICH HAS BEEN IN DEFAULT ON SOME OF ITS DEBT SINCE THE FALL HAD SAID IT WOULD REVALUE THE ASSETS ON ITS BALANCE SHEET IN ANTICIPATION OF REACHING A RESTRUCTURING PACT WITH ITS CREDITORS ROGER E. BRINNER EXECUTIVE DIRECTOR AND CHIEF ECONOMIST OF D. R. I. SLASH MCGRAW HILL OF LEXINGTON MASSACHUSETTS WAS NAMED A DIRECTOR OF THIS INSURANCE HOLDING COMPANY EXPANDING BOARD MEMBERSHIP TO EIGHT MR. BRINNER IS A FORMER SENIOR STAFF MEMBER OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISORS ROBERT D. RANDOLPH FIFTY EIGHT YEAR OLD EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF MARINE ENGINES AND BOATS WAS ELECTED A DIRECTOR FILLING A VACANCY AN UNUSUAL DISPUTE BETWEEN THE CHAIRMAN AND PRESIDENT OF SOVEREIGN BANCORP A THRIFT HOLDING COMPANY ENDED WHEN THE BANK DROPPED A LAWSUIT AGAINST THE CHAIRMAN AND THE CHAIRMAN ENDED A SUIT AGAINST THE PRESIDENT THE COMPANY FILED SUIT AGAINST FREDERICK J. JAINDL THE NON EXECUTIVE CHAIRMAN AND A MAJOR STOCKHOLDER IN DECEMBER CLAIMING THAT HE HAD VIOLATED FEDERAL REGULATIONS BY ATTEMPTING TO SELL SOVEREIGN WITHOUT FIRST CLEARING IT WITH THE BOARD MR. JAINDL RESPONDED BY FILING A COUNTERSUIT CHARGING THE BANK'S PRESIDENT AND CHIEF EXECUTIVE OFFICER JAY S. SIDHU WITH BREACH OF FIDUCIARY DUTY QUOTE THE LITIGATION IS ALL OVER AND WE ARE BACK ON THE ROAD QUOTE MR. JAINDL SAID IN AN INTERVIEW MR. SIDHU ECHOED THE SAME FEELINGS IN A WRITTEN STATEMENT WE ARE VERY PLEASED TO PUT ALL OUR PAST DIFFERENCES BEHIND US THE FEUD GREW OUT OF MR. JAINDL'S WISH TO TAKE ADVANTAGE OF THE HIGH PRICES THAT HAVE BEEN PAID FOR BANKS RECENTLY COMPLAINING THAT THE BANK WASN'T QUICK ENOUGH TO RESPOND TO THE INTEREST OF POTENTIAL ACQUIRERS HE ARGUED THAT THE BANK SHOULD HIRE AN INVESTMENT BANKER TO EVALUATE THE POSSIBILITY OF A SALE MR. SIDHU HOWEVER ARGUED THAT STOCKHOLDERS WOULD BE BEST SERVED IF THE BANK CONTINUED TO BE INDEPENDENT THE BANK'S STOCK PRICE ROSE MORE THAN SIX HUNDRED PERCENT BETWEEN DECEMBER NINETEEN NINETY AND LAST DECEMBER THIRTY FIRST ACCORDING TO ELIZABETH SUMMERS A BANKING AND THRIFT ANALYST WITH RYAN BECK AND COMPANY WEST ORANGE N. J. SOVEREIGN REPORTED FOURTH QUARTER NET INCOME WAS EIGHT POINT SIX MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE UP NINETY ONE PERCENT FROM FOUR POINT FIVE MILLION DOLLARS OR EIGHTEEN CENTS A SHARE A YEAR EARLIER THE QUARTER'S RESULTS INCLUDE A TWO POINT FIVE MILLION DOLLAR CHARGE FOR RESTRUCTURING IN CONNECTION WITH SOVEREIGN'S NOVEMBER ACQUISITION OF VALLEY FEDERAL SAVINGS AND LOAN ASSOCIATION THE BANK SAID THE IMPROVEMENT WAS DUE IN PART TO INCREASED LOAN ORIGINATIONS AND CONTINUED PROGRESS IN INTEGRATING ITS ACQUISITIONS NET INTEREST INCOME FOR THE QUARTER WAS THIRTY TWO POINT ONE MILLION DOLLARS UP SEVENTY TWO PERCENT FROM EIGHTEEN POINT SEVEN MILLION DOLLARS THE YEAR BEFORE THE COMPANY SAID FORECASTS FOR NINETEEN NINETY FOUR NET INTEREST INCOME ARE VERY FAVORABLE FOR ALL OF NINETEEN NINETY THREE NET INCREASED ONE HUNDRED TWENTY FOUR PERCENT TO THIRTY FIVE POINT FOUR MILLION DOLLARS OR ONE DOLLAR A SHARE FROM FIFTEEN POINT EIGHT MILLION DOLLARS OR SIXTY THREE CENTS A SHARE A YEAR EARLIER FULL YEAR EARNINGS INCLUDE A FOUR POINT EIGHT MILLION DOLLAR CHARGE FOR INCOME TAX CHANGES ASSETS AT YEAR END TOTALED FOUR POINT FIVE BILLION DOLLARS METRICOM INCORPORATED GOT A SEVEN MILLION DOLLAR EXTENSION ON A CONTRACT WITH S. C. E. CORPORATION.'S SOUTHERN CALIFORNIA EDISON COMPANY UNIT METRICOM SAID THE CONTRACT COVERS THE INITIAL PHASE OF A TWO YEAR PROGRAM UNDER WHICH METRICOM'S UTILINET DIVISION WILL SUPPLY A WIRELESS DATA COMMUNICATIONS NETWORK FOR SOCAL ED'S DISTRIBUTION SYSTEM EFFICIENCY ENHANCEMENT PROJECT A METRICOM SPOKESMAN SAID THE EXTENSION IS FOR ADDITIONAL PRODUCT ORDERS AND BOOSTS THE VALUE OF THE CONTRACT TO TWELVE MILLION DOLLARS NATURE'S SUNSHINE PRODUCTS INCORPORATED FORMED A SUBSIDIARY TO DISTRIBUTE THE COMPANY'S FULL LINE OF HERBS AND NUTRITIONAL PRODUCTS IN BRAZIL THE COMPANY SAID THE UNIT WILL BE IN OPERATION IN APRIL DATA GENERAL CORPORATION CITING DISAPPOINTING SALES IN EUROPE AND IN ITS ECLIPSE MINICOMPUTER LINE POSTED A LOSS OF TWENTY ONE POINT ONE MILLION DOLLARS OR SIXTY CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED DECEMBER TWENTY FIFTH THAT COMPARES WITH NET INCOME OF EIGHT HUNDRED THOUSAND DOLLARS OR TWO CENTS A SHARE IN THE YEAR AGO QUARTER REVENUE DECLINED SIX POINT SIX PERCENT TO TWO HUNDRED SIXTY ONE POINT TWO MILLION DOLLARS FROM TWO HUNDRED SEVENTY NINE POINT SIX MILLION DOLLARS THE WESTBORO MASSACHUSETTS COMPANY BLAMED A FIFTY PERCENT DROP IN REVENUE FROM ITS ECLIPSE LINE AND A THIRTY PERCENT DECLINE IN EUROPEAN REVENUE FOR ITS DISAPPOINTING RESULTS HOWEVER THE COMPANY SAID ITS AVIION SALES CONTINUED TO CLIMB AVIION IS A NEWER SYSTEM THAT UNLIKE THE OLDER ECLIPSE LINE CAN USE STANDARD UNIX SOFTWARE THAT ALSO RUNS ON MANY OTHER MAKERS' COMPUTERS SINCE THE INTRODUCTION OF AVIION FOUR YEARS AGO THE COMPANY HAS INSTALLED MORE THAN TWENTY THREE THOUSAND SUCH SYSTEMS RESULTING IN TOTAL REVENUE OF MORE THAN ONE BILLION DOLLARS A POLITICAL WAY OF THINKING HAS SO PERMEATED THE AMERICAN CONSCIOUSNESS THAT IT HAS CHANGED THE WAY IN WHICH WE USE ENGLISH BELOW A LEXICON THAT SHOWS HOW CERTAIN WORDS ARE USED BY MAJOR AMERICAN NEWSPAPERS BY THE ELECTRONIC NEWS MEDIA ESPECIALLY TELEVISION AND BY MANY INDIVIDUALS IN PUBLIC AND PRIVATE DEBATE CONSERVATIVE A PERSON WITH SELFISH MOTIVES LIBERAL A PERSON WITH ALTRUISTIC MOTIVES N. B. IN ELEVEN YEARS OF DOING TALK RADIO I NEVER ONCE SPOKE TO A LIBERAL WHO BELIEVED THAT A PERSON WHO VOTED FOR RONALD REAGAN OR GEORGE BUSH COULD BE MOTIVATED BY ALTRUISM REPUBLICANS BY DEFINITION QUOTE VOTE WITH THEIR POCKETBOOKS QUOTE ULTRA CONSERVATIVE A PERSON WHO IS TOO CONSERVATIVE ULTRA LIBERAL TERM NOT USED ONE CANNOT BE TOO LIBERAL N. B. I READ SIX NEWSPAPERS A DAY AND COUNTLESS JOURNALS I HAVE NEVER ENCOUNTERED THE TERM ULTRA LIBERAL OR ARCH LIBERAL I READ OR HEAR ABOUT ULTRA OR ARCH CONSERVATIVES ALL THE TIME CHRISTIAN RIGHT CONTEMPTIBLE PEOPLE WHO ALWAYS TRY TO IMPOSE THEIR VALUES ON OTHER AMERICANS LIBERALS IDEALISTIC PEOPLE WHO NEVER TRY TO IMPOSE THEIR VALUES ON OTHER AMERICANS N. B. WHEN CHRISTIANS TRY TO PUT THEIR VALUES INTO LAW FOR EXAMPLE PREVENTING GOVERNMENT FUNDS FROM GOING TO WHAT EVEN MOST LIBERALS WOULD CONSIDER TO BE OBSCENE ART THEY ARE ATTACKED FOR TRYING TO IMPOSE THEIR VALUES ON OTHERS HOWEVER WHEN LIBERALS PASS LAWS REFLECTING THEIR VALUES E. G. FORCING STATES TO ALLOW GAY AND LESBIAN COUPLES THE SAME RIGHT TO ADOPT CHILDREN AS MARRIED COUPLES THAT IS NOT REGARDED AS IMPOSING VALUES BUT SIMPLY THE RIGHT THING TO DO ABORTION A FORM OF BIRTH CONTROL WOMEN'S RIGHTS SUPPORTING THE RIGHT TO DESTROY A HUMAN FETUS FOR PERSONAL CONVENIENCE ANIMAL RIGHTS OPPOSING THE RIGHT TO DESTROY A RABBIT FOR CANCER RESEARCH N. B. IN OUR TIME THE INTELLECTUAL AND MORAL NORM IS TO REGARD A BABY SEAL AS OF INFINITELY MORE WORTH THAN A HUMAN FETUS FETUS AN UNBORN BABY THAT IS TO BE ABORTED BABY AN UNBORN BABY THAT IS NOT TO BE ABORTED N. B. WHEN A WOMAN IS PREGNANT AND WANTS TO GIVE BIRTH NO ONE ASKS HER NO MATTER HOW EARLY IN THE PREGNANCY SO HOW'S THE FETUS DOING WE ONLY USE THE TERM FETUS WHEN WE PLAN TO DESTROY IT OTHERWISE WE USE BABY FROM THE FIRST DAY OF PREGNANCY WOMAN AUTHENTIC A WOMAN WHO HOLDS LIBERAL VIEWS WOMAN INAUTHENTIC A WOMAN WHO DOES NOT HOLD LIBERAL VIEWS N. B. GLORIA STEINEM CALLED TEXAS SENATOR KAY BAILEY HUTCHISON A QUOTE FEMALE IMPERSONATOR QUOTE U. S. A. TODAY JUNE ELEVENTH NINETEEN NINETY THREE MS. HUTCHISON IS A CONSERVATIVE REPUBLICAN CENSORSHIP THE REFUSAL OF THE GOVERNMENT TO FUND A RADICAL ARTIST N. B. CENSORSHIP WAS ALWAYS UNDERSTOOD AS THE PROHIBITION OF EXPRESSION ACCORDING TO THE ARTS COMMUNITY AND ITS SUPPORTERS HOWEVER CENSORSHIP NOW MEANS GOVERNMENTAL REFUSAL TO FUND A WORK OF ART CENSORS CHRISTIANS WHO BOYCOTT VIOLENT T. V. SHOWS SOCIAL ACTIVISTS HOLLYWOOD ACTORS WHO BOYCOTT COLORADO HITLER YOUTH PEOPLE WHO AMONG OTHER TERRIBLE THINGS DROWNED OUT LIBERAL SPEAKERS WITH WHOM THEY DISAGREED AND DESTROYED LIBERAL NEWSPAPERS WITH WHICH THEY DISAGREED PROGRESSIVE STUDENTS PEOPLE WHO AMONG OTHER GOOD THINGS DROWN OUT CONSERVATIVE SPEAKERS WITH WHOM THEY DISAGREE AND DESTROY CONSERVATIVE NEWSPAPERS WITH WHICH THEY DISAGREE N. B. THUS THE PROGRESSIVE STUDENTS WHO STOLE ALL COPIES OF THE CONSERVATIVE PAPER AT THE UNIVERSITY OF PENNSYLVANIA WERE EXONERATED AND THE GUARDS WHO STOPPED THEM WERE CHASTISED FOR INTERFERING IN A STUDENT PROTEST THE SOVIET UNION BEFORE ITS FALL AN ALTERNATIVE SYSTEM OF GOVERNMENT THAT SHOULD NOT BE CONDEMNED WITH SUCH COLD WAR LABELS AS EVIL EMPIRE THE SOVIET UNION AFTER ITS FALL AN EVIL EMPIRE N. B. SINCE THE FALL OF THE SOVIET UNION NEARLY EVERYONE NOW SPEAKS OF COMMUNISM IN THE TERMS THAT COLD WARRIORS USED RELIGIOUS EXTREMIST A PERSON WHO IS TOO RELIGIOUS USUALLY MEANING THAT THE PERSON HOLDS TRADITIONAL RELIGIOUS BELIEFS AND IS POLITICALLY ACTIVE SECULAR EXTREMIST TERM NOT USED ONE CANNOT BE TOO SECULAR N. B. THOSE WHO CALL FOR THE RIGHT TO MENTION GOD'S NAME IN HIGH SCHOOL GRADUATION EXERCISES ARE RELIGIOUS EXTREMISTS WHILE THOSE LIKE THE AMERICAN CIVIL LIBERTIES UNION WHO LITIGATE AGAINST SCHOOLS THAT POST THE TEN COMMANDMENTS ON THEIR WALLS ARE NEVER DESCRIBED AS SECULAR EXTREMISTS SEXIST A MAN WHO DISAGREES WITH WOMEN WHO HOLD LIBERAL VIEWS FOR THE TERM FOR A WOMAN WHO DISAGREES WITH WOMEN WHO HOLD LIBERAL VIEWS SEE WOMAN INAUTHENTIC N. B. THIS IS WHY SENATOR EDWARD KENNEDY ONE OF THE MOST NOTORIOUS WOMANIZERS IN AMERICAN PUBLIC LIFE IS NEVER CALLED SEXIST HE DOESN'T DISAGREE WITH LIBERAL WOMEN'S GROUPS HOWEVER MEN WHO TREAT WOMEN BEAUTIFULLY AND RESPECT THEM AS EQUALS BUT DO NOT AGREE WITH THE NATIONAL ORGANIZATION FOR WOMEN ARE SEXIST TOLERANCE OPENNESS TO ALL IDEAS ON THE LEFT RAGE THE EXCUSE FOR VIOLENCE COMMITTED AGAINST INNOCENT PEOPLE BY MEMBERS OF AN AGGRIEVED MINORITY N. B. SINCE THE THUGS WHO TERRORIZE TURKISH IMMIGRANTS IN GERMANY ARE WHITE THEIR ACTIONS ARE NEVER UNDERSTOOD IN TERMS OF RAGE ONLY CONDEMNED CORRECTLY AS THUGGERY BUT WHEN BLACK THUGS TERRORIZED KOREAN IMMIGRANTS IN LOS ANGELES THEIR ACTIONS WERE CONSTANTLY UNDERSTOOD IN TERMS OF THEIR RAGE VICTIMS NEARLY ALL BLACKS AND WOMEN BUT ESSENTIALLY MEMBERS OF EVERY GROUP EXCEPT WHITE HETEROSEXUAL MALES THE GROUP MUST ALSO BE ASSOCIATED WITH LIBERAL ACTIVISM N. B. THUS KOREAN AMERICANS THOUGH THE PRIMARY VICTIMS OF THE LOS ANGELES RIOTS ARE NEVER REFERRED TO AS VICTIMS THEY HOLD CONSERVATIVE VIEWS IDEAL FAMILY ANY UNIT OF PEOPLE N. B. TO DEFINE THE IDEAL FAMILY AS A MARRIED MOTHER AND FATHER WITH CHILDREN IS TO BE INTOLERANT AND JUDGMENTAL PROGRESSIVE VIEW OF HUMANITY DIVIDING PEOPLE BY THEIR RACE GENDER AND CLASS REACTIONARY VIEW OF HUMANITY DIVIDING PEOPLE BY THEIR VALUES AND BEHAVIOR BLACKS AUTHENTIC BLACKS WHO HOLD LIBERAL VIEWS IN PARTICULAR THAT AMERICA IS RACIST AND THAT RACISM IS THE GREATEST BLACK PROBLEM BLACKS INAUTHENTIC BLACKS WHO DO NOT HOLD LIBERAL VIEWS ESPECIALLY IF THEY HOLD THAT AMERICA IS NOT RACIST AND THAT RACISM IS NOT THE GREATEST BLACK PROBLEM SUCH BLACKS ALSO ARE KNOWN AS UNCLE TOMS RACIST A WHITE WHO DOES NOT AGREE WITH A POSITION HELD BY THE CIVIL RIGHTS LEADERSHIP N. B. TO CITE ONE OF INNUMERABLE EXAMPLES A NUMBER OF BLACK LEADERS HAVE LABELED SUPPORT FOR SCHOOL VOUCHERS AS RACIST EVEN THOUGH SCHOOL VOUCHERS TEND TO BE SUPPORTED MORE BY INNER CITY BLACKS THAN BY WHITE SUBURBANITES BUT SINCE THE LIBERAL BLACK LEADERSHIP IS OPPOSED TO VOUCHERS SUPPORT FOR IT IS RACIST WHITE RACISM REDUNDANT TERM BLACK RACISM TERM NOT USED IT DOES NOT EXIST AN IDEA PERPETRATED BY WHITE RACISTS POVERTY THE REASON FOR MURDER RAPE AND CARJACKINGS GREED THE REASON FOR EMBEZZLEMENT INSIDER TRADING AND OTHER WHITE COLLAR CRIMES MINORITIES MEMBERS OF GROUPS WHOSE SPOKESPEOPLE ARE ANGRY AT AMERICA THUS CUBAN JAPANESE KOREAN AND JEWISH AMERICANS ARE RARELY REFERRED TO AS MINORITIES COMMUNITY A TERM CREATED IN ORDER TO IMPLY THAT MEMBERS OF A VICTIMIZED GROUP ALL HOLD THE SAME LIBERAL VIEWS CIVIL RIGHTS ORGANIZATIONS ORGANIZATIONS THAT HOLD WHITE PEOPLE RESPONSIBLE FOR THE MAJORITY OF BLACKS' PROBLEMS FEMINIST ORGANIZATIONS ORGANIZATIONS THAT HOLD MEN RESPONSIBLE FOR THE MAJORITY OF WOMEN'S PROBLEMS QUOTE BLAMING THE VICTIM QUOTE MAKING MORAL DEMANDS OF ANY MEMBER OF A VICTIMIZED MINORITY SEE QUOTE VICTIMS QUOTE MR. PRAGER WRITES ULTIMATE ISSUES A QUARTERLY JOURNAL FROM WHICH THIS ARTICLE IS ADAPTED HE HOSTS A DAILY TALK SHOW ON KABC RADIO IN LOS ANGELES I AM ASSOCIATING WITH USUALLY MEANS IT IS FRENCH WINE FOREIGN ADE PRECIOUS METALS PRICES FELL IN A DAY OF RETRENCHMENT FOR A MARKET THAT SOME ANALYSTS SAID HAS OVEREXTENDED ITSELF WITH TWO MONTHS OF PRICE GAINS AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS DOWN FOUR DOLLARS AND EIGHTY CENTS TO THREE HUNDRED EIGHTY SEVEN DOLLARS AND NINETY CENTS AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVER FUTURES CONTRACT WAS DOWN SEVEN POINT TWO CENTS TO FIVE POINT TWO SEVEN FIVE DOLLARS AN OUNCE BRITISH NEWS REPORTS YESTERDAY ASSERTED THAT ONE THOUSAND TWO HUNDRED FORTY TONS OF GOLD STASHED BY FORMER PHILIPPINE PRESIDENT FERDINAND MARCOS HAD BEEN FOUND IN A WAREHOUSE IN SWITZERLAND DISCOVERY OF A PREVIOUSLY UNKNOWN HOARD OF GOLD OF THAT SIZE MORE THAN HALF THE WORLD'S ANNUAL OUTPUT OF GOLD AND WORTH ABOUT TWELVE POINT FIVE BILLION DOLLARS AT CURRENT PRICES COULD BE EXPECTED TO PRESSURE PRICES LOWER ANALYSTS SAID BUT THE NEWS REPORTS WEREN'T CONFIRMED BY OFFICIAL SOURCES THE RUMOR TITILLATED TRADERS ANALYSTS SAID BUT IT WASN'T THE PRIMARY REASON FOR YESTERDAY'S BROAD BASED DECLINE RATHER QUOTE THE MARKET SEEMS TO BE IN THE THROES OF SOME KIND OF DISTRIBUTION NOW THRASHING ABOUT IN AN UNORDERLY FASHION QUOTE SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INCORPORATED MR. SAVAIKO SAID HE BELIEVES THE CURRENT CHOPPINESS OF THE MARKET COULD BE THE PREFACE TO A SHARP PRICE DROP THAT COULD SEE THE PRICE OF GOLD FALL WELL BELOW THREE HUNDRED EIGHTY DOLLARS OTHERS AREN'T SO SURE HOWEVER I THINK THE MAJORITY OF YESTERDAY'S DECLINE WAS TECHNICALLY INSPIRED SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH I THINK THERE WILL BE FURTHER CONSOLIDATION HOW FAR IT GOES I'M NOT SURE BUT I THINK THIS IS JUST A TEMPORARY CORRECTION IN AN OVERALL BULL TREND WHAT IS CLEAR IS THAT SPECULATORS OF ALL SIZES BAILED OUT OF LONG POSITIONS OR WAGERS THAT FUTURES PRICES WOULD RISE AS PRICES FELL YESTERDAY THROUGH KEY LEVELS THESE INVESTORS INCLUDING BIG AND INFLUENTIAL COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY HELPED TO EXACERBATE THE DECLINE BY SELLING FUTURES CONTRACTS GLOOMY TRADERS SHRUGGED OFF A SEEMINGLY POSITIVE HOUSING STARTS REPORT IN WHICH THE COMMERCE DEPARTMENT REPORTED HIGHER THAN EXPECTED CONSTRUCTION OF NEW HOMES DURING ITS CLIMB IN RECENT MONTHS THE PRICE OF GOLD HAS RECEIVED SUPPORT FROM A SERIES OF SIMILARLY POSITIVE U. S. ECONOMIC REPORTS ALSO EXERTING DOWNWARD PRESSURE ON GOLD FUTURES PRICES YESTERDAY MR. SAVAIKO SAID WAS A REPORT IN THIS NEWSPAPER THAT INSIDERS AT CERTAIN GOLD MINING COMPANIES HAD SOLD SHARES OF THEIR COMPANIES' STOCKS GRAINS AND SOYBEANS PRICES OF MOST CROP FUTURES CONTRACTS SKIDDED FOR THE THIRD CONSECUTIVE DAY AS COMMODITY FUND MANAGERS CONTINUED TO TAKE PROFITS ON LONG LASTING RALLIES IN THE GRAIN FUTURES PITS GRAIN PRICES HAVE CLIMBED SINCE THE DISAPPOINTING CROPS HARVESTED LAST FALL IN THE MIDWEST WHICH SUFFERED FROM RECORD RAIN AND FLOODING IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY SLIPPED ONE POINT SEVEN FIVE CENTS A BUSHEL TO SETTLE AT THREE DOLLARS AND SEVENTY TWO CENTS A BUSHEL SOYBEAN PRICES FELL CORN PRICES SETTLED MIXED SPARKS COMPANIES A MEMPHIS TENNESSEE BASED AGRICULTURAL FORECASTING CONCERN TOLD CLIENTS IT EXPECTS U. S. CORN FARMERS TO PLANT SEVENTY NINE POINT EIGHT MILLION ACRES THIS SPRING UP EIGHT POINT THREE PERCENT FROM THE SEVENTY THREE POINT SEVEN MILLION ACRES PLANTED LAST YEAR ENERGY HEATING OIL PRICES FELL SHARPLY AMID THE BELIEF SUPPLIES WERE ADEQUATE TO MEET HEIGHTENED WINTER DEMAND THE DROP IN HEATING OIL DRAGGED DOWN CRUDE PRICES TOO THE DECLINE CAME DESPITE THE LATEST OIL INVENTORY DATA WHICH SHOWED THAT HEATING OIL STOCKS FELL BY ABOUT FOUR POINT EIGHT MILLION BARRELS IN THE LATEST WEEK SOME MARKET PARTICIPANTS SAID A DRAWDOWN THAT SIZE WAS EXPECTED AND A LARGER ONE WAS NEEDED TO RAISE SUPPLY QUESTIONS AND BOOST PRICES ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FOR FEBRUARY DELIVERY FELL TWO POINT ONE TWO CENTS A GALLON TO FORTY SEVEN POINT NINE SIX CENTS WEATHER FORECASTS THAT THE RECORD COLD SPELL ACROSS MUCH OF THE COUNTRY WAS COMING TO AN END ALSO DEPRESSED PRICES FEBRUARY CRUDE OIL SETTLED AT FIFTEEN DOLLARS AND TEN CENTS A BARREL DOWN TWELVE CENTS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INCORPORATED ANNOUNCED DISCIPLINARY ACTIONS AGAINST SIX FIRMS AND A NUMBER OF INDIVIDUALS FOR VIOLATIONS OF SECURITIES LAWS AND INDUSTRY REGULATIONS TEXAS AMERICAN SECURITIES CORPORATION DALLAS WAS EXPELLED BASED ON FINDINGS THAT THE FIRM FAILED TO MEET MINIMUM NET CAPITAL REQUIREMENTS DALLAS SLASH PARK CITIES SECURITIES INCORPORATED DALLAS AND PRINCIPAL CHARLES ROYCE GOODBREAD WERE FINED TEN THOUSAND DOLLARS JOINTLY AND SEVERALLY EACH RESPONSIBLE FOR THE FULL AMOUNT THEY AGREED TO REFRAIN FROM SELLING SECURITIES AS A PRINCIPAL AT PRICES BELOW TEN DOLLARS A SHARE FOR A YEAR THE FIRM WAS SUSPENDED FROM N. A. S. D. MEMBERSHIP FOR SEVEN DAYS AND REQUIRED TO PAY FIVE THOUSAND ONE HUNDRED TEN DOLLARS IN RESTITUTION TO PUBLIC CUSTOMERS MR. GOODBREAD WAS ALSO SUSPENDED FOR FIFTEEN DAYS IN ADDITION PRINCIPAL JEREMY STEVEN COHEN DALLAS WAS FINED FIVE THOUSAND DOLLARS SUSPENDED FOR THIRTY DAYS AND ALSO REQUIRED TO PAY TWELVE THOUSAND THREE HUNDRED FORTY FIVE DOLLARS IN RESTITUTION TO PUBLIC CUSTOMERS AND PRINCIPAL EDDIE HAROLD LANDERS FORT WORTH TEXAS WAS FINED TEN THOUSAND DOLLARS AND SUSPENDED IN ANY PRINCIPAL CAPACITY FOR FIVE BUSINESS DAYS THE DALLAS SLASH PARK CITIES GROUP DIDN'T ADMIT OR DENY ALLEGATIONS THAT THEY MADE SECURITIES SALES IN VIOLATION OF N. A. S. D. MARKUP POLICY AND OPERATED A BRANCH OFFICE OF ANOTHER MEMBER FIRM WITHOUT REGISTERING WITH THE N. A. S. D. STARBOARD CAPITAL CORPORATION WILLIAMSVILLE N. Y. AND PRINCIPAL CASIMER J. JASZEWSKI ONTARIO CANADA WERE FINED TEN THOUSAND DOLLARS JOINTLY AND SEVERALLY AND SUSPENDED UNTIL THEY HONOR AN N. A. S. D. ARBITRATION AWARD OR FOR AT LEAST FIVE BUSINESS DAYS THE N. A. S. D. SAID THEY FAILED TO PAY A TEN THOUSAND NINE HUNDRED SIXTY NINE DOLLAR AND FORTY THREE CENT ARBITRATION AWARD D. H. DAMON AND COMPANY NEW YORK WAS FINED THIRTY THOUSAND DOLLARS AND REQUIRED TO PAY FIFTY SEVEN THOUSAND SIX HUNDRED SEVENTY ONE DOLLARS AND THIRTY CENTS IN RESTITUTION AND INTEREST TO PUBLIC CUSTOMERS PRINCIPAL DAMON D. TESTAVERDE STATEN ISLAND AND PRINCIPAL RONALD I. HELLER ORANGEBURG N. Y. WERE EACH FINED TWENTY THOUSAND DOLLARS SUSPENDED IN ANY CAPACITY FOR TWO WEEKS AND SUSPENDED IN ANY PRINCIPAL CAPACITY FOR TWO MONTHS THE N. A. S. D. SAID THEY DIDN'T ADMIT OR DENY FINDINGS THAT THEY CAUSED A STOCK PRICE TO RISE DURING A DISTRIBUTION AND FAILED TO ENFORCE PROCEDURES TO COMPLY WITH SECURITIES AND EXCHANGE COMMISSION RULES UNLESS OTHERWISE NOTED NONE OF THE PARTIES COULD BE REACHED OR HAD ANY COMMENT NETWORK ONE FINANCIAL SECURITIES INCORPORATED RED BANK N. J. WAS FINED SEVENTEEN THOUSAND FIVE HUNDRED DOLLARS JOINTLY AND SEVERALLY WITH PRINCIPAL RICHARD D. O'REILLY OCEAN N. J. AND SEVENTEEN THOUSAND FIVE HUNDRED DOLLARS JOINTLY AND SEVERALLY WITH PRINCIPAL WILLIAM R. HUNT JUNIOR ROBBINSVILLE N. J. MR. HUNT WAS SUSPENDED FOR TWENTY ONE DAYS AND MR. O'REILLY FOR FORTY FIVE DAYS BROKER BRUCE C. ROTHENBERG LANCASTER N. Y. WAS FINED FIVE THOUSAND DOLLARS AND SUSPENDED FOR THIRTY DAYS BROKER SHAHEN BEDROSIAN NIAGARA FALLS N. Y. WAS FINED TWO THOUSAND FIVE HUNDRED DOLLARS AND SUSPENDED FOR TWENTY DAYS THEY DIDN'T ADMIT OR DENY FINDINGS THAT THEY DISTRIBUTED TO THE PUBLIC SHARES THAT HADN'T BEEN REGISTERED WITH THE S. E. C. AND OF MAKING UNTRUE STATEMENTS TO CUSTOMERS AMONG OTHER CHARGES LAURA SPEDALE CORPORATE COUNSEL FOR NETWORK ONE SAID THE FIRM AND ITS PRINCIPALS QUOTE WERE FRAUDULENTLY DECEIVED BY A NONASSOCIATED CONTROL INDIVIDUAL AND COULDN'T HAVE KNOWN OF HIS ALLEGED VIOLATIONS NETWORK ONE ACTED ONLY AS AN AGENT TO FACILITATE THE TRANSACTIONS WESTONKA INVESTMENTS INCORPORATED MINNETONKA MINNESOTA AND PRINCIPAL TIMOTHY JOEL FRIEDERICHS WERE FINED FIFTY THOUSAND DOLLARS JOINTLY AND SEVERALLY AND MR. FRIEDERICHS WAS SUSPENDED FOR SEVEN DAYS THEY DIDN'T ADMIT OR DENY FINDINGS THAT THEY SOLD UNREGISTERED SECURITIES INDIVIDUALS DISCIPLINED INCLUDED ROBERT WILLIAM COX MEDFORD OREGON FINED FIVE THOUSAND DOLLARS AND SUSPENDED FOR THIRTY DAYS WITHOUT ADMITTING OR DENYING CHARGES ANTHONY M. DEGRAZIER ADA MICHIGAN FINED THIRTEEN THOUSAND DOLLARS AND SUSPENDED FOR FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING CHARGES AND RONALD J. DIMURA MIDDLESEX N. J. FINED TWENTY THOUSAND DOLLARS AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THE N. A. S. D. DISCIPLINED SEVEN INDIVIDUALS WHO DIDN'T ADMIT OR DENY CHARGES THAT THEY ENGAGED IN ABUSIVE AND COERCIVE SALES PRACTICES IN DISTRIBUTING SALES SCRIPTS TO BROKERS OF THEIR FIRM THE DISCIPLINED BROKERS INCLUDED JOHN KEVIN DENNEE FINED FIFTEEN THOUSAND DOLLARS SUSPENDED FOR THIRTY DAYS AND BARRED IN A PRINCIPAL CAPACITY BERNARD RAYMOND SCHMITT SMYRNA GEORGIA STANLEY JAMES SICILIANO ROCHESTER N. Y. AND JEFFREY HAROLD SUPINSKY MASSAPEQUA N. Y. EACH FINED TEN THOUSAND DOLLARS AND SUSPENDED FOR FIFTEEN DAYS JEFFREY DAVID BROWN AURORA COLORADO WAS FINED FIFTEEN THOUSAND DOLLARS AND SUSPENDED FOR THIRTY DAYS WHICH CONCLUDED DECEMBER THIRTIETH NINETEEN NINETY THREE AND JOEL EDWARD SNOW LITTLETON COLORADO WAS FINED TEN THOUSAND DOLLARS AND BARRED DAVID JOHN ECKERT ROCHESTER N. Y. WAS FINED FIVE THOUSAND DOLLARS AND SUSPENDED FOR NINETY DAYS DAVID PAUL DURKO JUNIOR BRICK N. J. WAS SUSPENDED FOR FIVE BUSINESS DAYS FOR FAILING TO PAY A FIVE THOUSAND DOLLAR ARBITRATION AWARD JASON DRU DVORIN PLANO TEXAS WAS SUSPENDED AS A PRINCIPAL UNTIL HE MEETS CERTAIN QUALIFICATIONS ADAM BURTON FOX PARLIN N. J. WAS BARRED CHRISTOPHER GEDNEY MAHOPAC FALLS N. Y. WAS FINED FIFTY THOUSAND DOLLARS BARRED AND REQUIRED TO PAY ELEVEN THOUSAND TWO HUNDRED THIRTY ONE DOLLARS AND FIFTY TWO CENTS IN RESTITUTION TO A MEMBER FIRM WITHOUT ADMITTING OR DENYING CHARGES OF FORGING CUSTOMER SIGNATURES THOMAS E. GRAVES THE THIRD NASHVILLE TENNESSEE WAS FINED TEN THOUSAND DOLLARS AND SUSPENDED FOR TWO YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS MR. GRAVES SAID I PUT IN SEVEN YEARS AS AN N. A. S. D. LICENSED BROKER AND NEVER HAD ONE CUSTOMER COMPLAINT THE N. A. S. D. ALLEGATIONS INVOLVE EXCESSIVE AMOUNTS OF TRADING ACTIVITY AND UNAUTHORIZED TRADES MR. GRAVES SAID THIS INSTANCE STEMMED FROM A CUSTOMER'S ESTRANGED SON WHO ALSO FILED SUIT AGAINST VARIOUS FAMILY MEMBERS THE STATE INVESTIGATORS DROPPED VIRTUALLY ALL CHARGES ONCE I EXPLAINED THE SITUATION THE N. A. S. D. WAS VERY UNRESPONSIVE AND VERY INFLEXIBLE FIVE INDIVIDUALS WERE DISCIPLINED IN CONNECTION WITH TWO BLIND POOL OFFERINGS WITH EXCESSIVE MARKUPS OF FROM TEN PERCENT TO TWO HUNDRED SIXTY SIX PERCENT ABOVE THE FIRM'S CONTEMPORANEOUS COST PRINCIPAL JOHN G. HARMANN AURORA COLO WAS SUSPENDED FOR NINETY DAYS BROKERS FINED FIVE THOUSAND DOLLARS EACH AND SUSPENDED FOR FIVE DAYS WERE SHIRLEY A. GARRITY DENVER DAVID C. GREEN DENVER GENE A. HOCHEVAR BOULDER COLORADO AND GUY R. LABONE LAKEWOOD COLORADO THE SECURITIES AND EXCHANGE COMMISSION AFFIRMED THE SANCTIONS FOLLOWING AN APPEAL CHARLES GREGORY HEINS BLOOMINGTON ILLINOIS WAS FINED THIRTY FIVE THOUSAND DOLLARS BARRED AND REQUIRED TO PAY FOURTEEN THOUSAND THREE HUNDRED EIGHTY FIVE DOLLARS AND SIXTY EIGHT CENTS IN RESTITUTION LESS ANY AMOUNTS ALREADY PAID TO A MEMBER FIRM PAUL EUGENE HENDRICKS MONROE LOUISIANA WAS FINED FIVE THOUSAND DOLLARS SUSPENDED FOR THREE YEARS AND REQUIRED TO PAY ONE THOUSAND THREE HUNDRED DOLLARS IN RESTITUTION JAMES EARL JACOBY ELK GROVE CALIFORNIA WAS FINED FIVE THOUSAND DOLLARS AND SUSPENDED FOR FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING CHARGES ANDRE D. JOHNSON CHICAGO WAS FINED TEN THOUSAND DOLLARS AND SUSPENDED FOR FIVE BUSINESS DAYS BRETT JOHN KACURA SAN FRANCISCO WAS FINED FIFTY TWO THOUSAND NINE HUNDRED TWENTY DOLLARS AND BARRED YOUNG S. LEE MINEOLA N. Y. WAS FINED TWENTY FIVE THOUSAND DOLLARS AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS ROBERT KEITH MALKIN CASTAIC CALIFORNIA WAS SUSPENDED FOR THIRTY DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS ALSO DEBRA CAIN MCALLISTER QUITMAN TEXAS WAS FINED TWENTY THREE THOUSAND SIX HUNDRED SEVENTY FIVE DOLLARS AND BARRED PHILIP EVERETT MERCHANT REDLANDS CALIFORNIA WAS SUSPENDED FOR SEVEN DAYS AND BARRED AS A GENERAL SECURITIES PRINCIPAL CARLOS MONTANEZ MURILLO BAKERSFIELD CALIFORNIA WAS FINED FORTY ONE THOUSAND TWO HUNDRED FORTY DOLLARS AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS JOHN L. PITTS NORTH BABYLON N. Y. WAS FINED FIFTY THOUSAND DOLLARS BARRED AND REQUIRED TO PAY FOUR THOUSAND SIX HUNDRED SIXTY THREE DOLLARS AND TWENTY SIX CENTS IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL JOHN POLANSKY SENIOR HICKORY HILLS ILLINOIS WAS FINED FIFTY THOUSAND DOLLARS BARRED AND REQUIRED TO PAY THREE THOUSAND EIGHT HUNDRED THIRTEEN DOLLARS AND SIXTY SIX CENTS IN RESTITUTION CAROLYN PAULA POWERS PASADENA CALIFORNIA WAS FINED TEN THOUSAND DOLLARS AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS LYNN MARIE RACH LAKE FOREST CALIFORNIA WAS FINED FIVE THOUSAND DOLLARS AND SUSPENDED FOR FIVE BUSINESS DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS CARLOS RECONCO ELIZABETH N. J. WAS FINED TWENTY THOUSAND DOLLARS AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS EDWARD A. RIZZO MCGRAW N. Y. WAS FINED EIGHT THOUSAND FIVE HUNDRED DOLLARS AND BARRED ALSO JAMES M. RUSSEN JUNIOR MIDDLE ISLAND N. Y. WAS FINED FIFTY THOUSAND DOLLARS AND SUSPENDED FOR THIRTY BUSINESS DAYS SANCTIONS AFFIRMED BY THE S. E. C. DONNA I. SCHMEHL ANTIOCH ILLINOIS WAS FINED FIFTY THOUSAND DOLLARS BARRED AND REQUIRED TO PAY NINE THOUSAND SEVEN HUNDRED THIRTY TWO DOLLARS AND SEVENTY SIX CENTS IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS JOHN ROBERT SCHWENGER DENVER WAS ORDERED TO PAY SIXTY FIVE THOUSAND DOLLARS IN RESTITUTION FINED TEN THOUSAND DOLLARS WITH THE PROVISO THAT THE FINE CAN BE REDUCED BY ANY AMOUNT PAID TO A FIRM IN RESTITUTION AND SUSPENDED FOR FIFTEEN BUSINESS DAYS MARK P. SHAIN NORTH COLLINS N. Y. WAS BARRED WITHOUT ADMITTING OR DENYING FINDINGS AND GENE WILBUR WILLIAMS JUNIOR ROCKLIN CALIFORNIA WAS FINED FIVE THOUSAND DOLLARS AND SUSPENDED FOR TEN BUSINESS DAYS CHARLES E. YENGLIN LAKE CITY MICHIGAN WAS FINED FORTY FIVE THOUSAND DOLLARS BARRED AND REQUIRED TO PAY FIVE THOUSAND FOUR HUNDRED NINETY EIGHT DOLLARS AND NINETY ONE CENTS IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS ROBERT DOUGLAS ZILLER ROCHESTER MINNESOTA WAS FINED FIVE THOUSAND DOLLARS AND SUSPENDED FOR THIRTY DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS STEPHEN RUSSELL BOADT MARINA DEL REY CALIFORNIA WAS FINED TEN THOUSAND DOLLARS AND REQUIRED TO TAKE A FINANCIAL AND OPERATIONS PRINCIPAL EXAMINATION WITHIN ONE HUNDRED TWENTY DAYS IF HE FAILS TO PASS THE EXAMINATION DURING THAT PERIOD HE MAY NOT ACT IN ANY PRINCIPAL CAPACITY UNTIL HE PASSES THE EXAM THE S. E. C. MODIFIED THE SANCTIONS FOLLOWING APPEAL IN RESPONSE TO YOUR DECEMBER THIRTIETH PAGE ONE ARTICLE QUOTE PHYSICIANS FIGHT BACK AS INSURERS CUT THEM FROM HEALTH NETWORKS QUOTE MASSIVE ACCUMULATION OF FINANCIAL AND POLITICAL POWER IS RAPIDLY MOVING INTO THE HANDS OF THE LARGE FOR PROFIT INSURANCE COMPANIES AND THEIR H. M. O.S GIVING THEM ALMOST DICTATORIAL POWER OVER THE JOBS AND INCOMES OF PHYSICIANS THE INSURANCE INDUSTRY'S FREEDOM FROM ANTITRUST CONSTRAINTS VIA THE NINETEEN FORTY FIVE MCCARRAN FERGUSON ACT COUPLED WITH ENORMOUS UNTAXED FINANCIAL RESERVES THAT CAN BE USED FOR BUYING AND CREATING H. M. O.S GIVE THEM AN UNIQUE ADVANTAGE IN THE CLIMB TO THE PINNACLE OF THE HEALTH CARE POWER MOUNTAIN WHILE PHYSICIAN INCOMES WILL GO DOWN AND DOWN THE INCOMES AND PERKS OF MARGINALLY EDUCATED H. M. O. AND INSURANCE EXECUTIVES WILL GO UP AND UP FOR SOCIETY MOVING FROM FEE FOR SERVICES AN INHERENTLY WASTEFUL BUT QUALITY ORIENTED SYSTEM TO THE LESS IS BEST CAPITATION WORLD OF GIANT FOR PROFIT H. M. O.S IS LIKE TRADING A GREAT DANE THAT COULD BE HOUSEBROKEN FOR A BULL RHINO THAT MAY CRUSH ANYTHING THAT HAPPENS TO GET IN ITS PATH IF A PATIENT DEVELOPS CANCER AT THE END OF AN H. M. O.'S FISCAL YEAR AND THE ONCOLOGIST THEY GO TO IS FIFTY THOUSAND DOLLARS OVER BUDGET MANAGEMENT WILL STRONGLY ENCOURAGE WHEN POSSIBLE THE ONCOLOGIST TO TELL THE PATIENT THAT THERE IS NO CHEMOTHERAPY THAT WILL BENEFIT HIM AND WHEN NOT POSSIBLE WILL STRONGLY ENCOURAGE THE ONCOLOGIST TO TREAT THE PATIENT WITH THE LOWEST COSTING DRUG PROTOCOL AVAILABLE FOR THAT PARTICULAR CANCER NO THERAPY AND MINIMAL THERAPY FOR CANCER PATIENTS WILL BE THE BUZZ PHRASES FOR H. M. O. EXECUTIVES IN OUR NEW HEALTH CARE SYSTEM AS AN ONCOLOGIST I FEAR FOR TOMORROW'S CANCER PATIENTS WHO WILL BE AT THE MERCY OF THE BOTTOM LINE MANAGERS AT CAPITATION H. M. O.S WHO PRACTICE MEDICINE WITHOUT KNOWLEDGE WISDOM COMPASSION OR A LICENSE MEDICAL PRACTICE BY INSURANCE FIAT WILL EVISCERATE QUALITY AND THE ART OF MEDICINE FROM MEDICAL CARE YOUR EXCELLENT ARTICLE ENTITLED LOSING PATIENTS SHOULD BE READ AS A CAUTIONARY STORY BY CITIZENS WHO WILL REQUIRE MEDICAL CARE UNDER AN INCREASINGLY MANAGED SYSTEM NOT JUST AS A DESCRIPTION OF THE PROBLEMS OF PRACTITIONERS LARGER SYSTEMS OF CARE WHETHER GOVERNMENT OR CORPORATE MAY SET PARAMETERS AND PROVIDE REPORT CARDS ON CARE THIS APPROACH SHOULD BE THOUGHT OF AS A USEFUL PUBLIC HEALTH MODEL FOR CARE AND IS PROTECTIVE OF BROAD POPULATIONS OF PATIENTS UNFORTUNATELY INDIVIDUALS MAY NOT BE WELL PROTECTED WHEN ONLY THAT MODEL IS USED ONLY A PHYSICIAN WITH AN ONGOING RELATION TO A PATIENT OVER TIME CAN CARE AND ADVOCATE RENDERING FAR MORE THAN JUST TECHNICAL CARE TO THEIR PATIENTS FRIGHTENINGLY THE CURRENT TREND IN MANAGED CARE AIMS TO DESTROY THE DOCTOR SLASH PATIENT RELATIONSHIP M. D.S ARE INCREASINGLY INTIMIDATED AWAY FROM ACTIVE ADVOCACY FOR FEAR OF BEING DROPPED FROM NETWORKS AND THUS SUFFERING THE LOSS OF REFERRALS AND LIVELIHOOD PATIENTS LIKE COMMODITIES ARE SHIFTED FROM PROVIDER PANEL AND THUS LOSE THEIR CHAMPIONS WHEN AMERICANS SAY THEY WANT THEIR OWN DOCTOR THEY DON'T SIMPLY MEAN THEY WANT THE M. D. THEY HAVE NOW THEY MEAN THEY DON'T WANT TO BE FREQUENTLY SHIFTED FROM ONE M. D. TO ANOTHER AS MUST OCCUR FOR MANAGED COMPETITION TO WORK RATHER THEY WANT A RELATIONSHIP WITH AN M. D. WHOSE JUDGMENT THEY TRUST THEY WANT A SYSTEM IN WHICH THAT DOCTOR IS ABLE TO ADVOCATE FOR THEIR BEST INTERESTS WITHOUT FEAR OF REPRISAL THEY WORRY THEY WILL GET QUOTE COMPANY DOCTORS QUOTE WHO ARE CONTROLLED NOT PRIMARILY BY THEIR CLINICAL NEEDS BUT BY THE CALCULUS OF CORPORATE BOTTOM LINES BENGT SAMUELSSON FIFTY NINE YEARS OLD WAS ELECTED A DIRECTOR OF THIS LIPOSOME AND LIPID BASED PHARMACEUTICALS COMPANY INCREASING THE BOARD TO EIGHT MEMBERS DOCTOR SAMUELSSON IS PRESIDENT AND A PROFESSOR AT THE KAROLINSKA INSTITUTET IN STOCKHOLM RESEARCHERS HAVE FOR THE FIRST TIME SUCCESSFULLY CREATED CHANGES IN THE BRAINS OF LABORATORY RATS THAT MIMIC DAMAGE SEEN IN ALZHEIMER'S DISEASE ACCORDING TO A REPORT PUBLISHED IN THE JOURNAL NEURON THE TECHNIQUE SHOULD GREATLY ACCELERATE RESEARCH INTO CAUSES OF ALZHEIMER'S AND HELP DEVELOP NEW TREATMENTS FOR THE INCURABLE MIND DESTROYING DISEASE THAT AFFLICTS SOME FOUR MILLION AMERICANS SAID STUDY AUTHOR ALAN SNOW QUOTE WE ARE NOW GOING TO BE ABLE TO ANSWER MANY QUESTIONS THAT COULDN'T BE ANSWERED BEFORE QUOTE SAID DOCTOR SNOW A NEUROPATHOLOGIST AT THE UNIVERSITY OF WASHINGTON SCHOOL OF MEDICINE WHO WORKED WITH COLLABORATORS IN CALIFORNIA CANADA AND JAPAN CURRENTLY THE ONLY WAY FOR DOCTORS TO BE CERTAIN THAT A PATIENT HAS ALZHEIMER'S DISEASE IS TO LOOK AT A PIECE OF THE PATIENT'S BRAIN UNDER THE MICROSCOPE FOR THAT REASON MOST CASES AREN'T CONFIRMED UNLESS THERE IS AN AUTOPSY AFTER DEATH IN ALZHEIMER'S A PROTEIN CALLED AMYLOID ACCUMULATES IN THE BRAIN FORMING DENSE CLUMPS CALLED AMYLOID PLAQUES VARIAN ASSOCIATES INCORPORATED SAID ITS FISCAL FIRST QUARTER NET INCOME SHOT UP SEVENTY SEVEN PERCENT AND NEW ORDERS HIT RECORDS SIGNALING THAT ITS TURNAROUND STRATEGY IS PAYING OFF THE COMPANY WHICH MAKES ELECTRONICS EQUIPMENT AND DEVICES USED TO MAKE SEMICONDUCTORS EARNED ELEVEN POINT SEVEN MILLION DOLLARS OR SIXTY FIVE CENTS PER SHARE COMPARED WITH SIX POINT SIX MILLION DOLLARS OR THIRTY SIX CENTS A SHARE IN THE YEAR EARLIER PERIOD IN THE LATEST QUARTER ENDED DECEMBER THIRTY FIRST SALES ROSE ELEVEN PERCENT TO THREE HUNDRED TWENTY THREE POINT EIGHT MILLION DOLLARS FROM TWO HUNDRED NINETY ONE POINT THREE MILLION DOLLARS MOREOVER VARIAN INDICATED THAT THE REST OF THE YEAR COULD BE ALMOST AS STRONG WITH EARNINGS GROWTH OF AS MUCH AS FIFTY PERCENT AND SALES GAINS OF AS MUCH AS TEN PERCENT IN FISCAL NINETEEN NINETY THREE ENDED OCTOBER SECOND NINETEEN NINETY THREE VARIAN HAD NET INCOME OF FORTY FIVE POINT EIGHT MILLION DOLLARS ON SALES OF ONE POINT THREE BILLION DOLLARS QUOTE OUR SITUATION HAS BRIGHTENED DRAMATICALLY IN THE PAST THREE TO FOUR MONTHS QUOTE SAID CHAIRMAN AND CHIEF EXECUTIVE J. TRACY O'ROURKE WHO IS CREDITED WITH REVIVING THE COMPANY HE CITED THE COMPOUNDING EFFECT OF DOUBLE DIGIT SALES GROWTH IN KEY BUSINESSES PLUS OPERATING EFFICIENCIES THAT HE HAS IMPLEMENTED OVER THE PAST FEW YEARS IT USED TO BE A TERRIFIC TECHNOLOGY COMPANY THAT COULDN'T MAKE A BUCK SAID MICHAEL LAUER AN ANALYST WITH KIDDER PEABODY AND COMPANY MR. O'ROURKE TRANSFORMED IT INTO A TERRIFIC TECHNOLOGY COMPANY THAT AT SAME TIME CAN MAKE A LOT OF DOUGH THE STREET DOESN'T FULLY YET APPRECIATE HOW MUCH IT CAN MAKE INDEED SOME ANALYSTS INCLUDING MR. LAUER RAISED THEIR EARNINGS ESTIMATES YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE COMPANY'S STOCK CLOSED AT SIXTY FIVE POINT SIX TWO FIVE DOLLARS UP ONE DOLLAR AND TWENTY FIVE CENTS THIS IS THE FOURTH TURNAROUND ASSIGNMENT FOR MR. O'ROURKE FIFTY EIGHT YEARS OLD WHO WAS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AT ROCKWELL INTERNATIONAL CORPORATION BEFORE HE TOOK OVER VARIAN IN EARLY NINETEEN NINETY AMONG OTHER CHANGES HE DIVESTED THE COMPANY OF UNDERPERFORMING OPERATIONS INCREASED THE MARKET SHARE OF ITS HIGHER MARGIN PRODUCTS AND SLASHED THE WORK FORCE TO SEVEN THOUSAND EIGHT HUNDRED PEOPLE FROM TWELVE THOUSAND FOUR HUNDRED VERY FEW COMPANIES WOULD RIVAL THIS TURNAROUND IN TERMS OF OPERATING PERFORMANCE AND OTHER IMPROVEMENTS MR. LAUER SAID NEW ORDERS ROSE TWENTY NINE PERCENT TO FOUR HUNDRED FORTY MILLION DOLLARS THE HIGHEST OF ANY QUARTER IN THE COMPANY'S HISTORY LEADING THAT SURGE WERE HEALTHCARE SYSTEMS AND SEMICONDUCTOR EQUIPMENT ITS ORDER BACKLOG WAS SEVEN HUNDRED THIRTY EIGHT MILLION DOLLARS AN INCREASE OF MORE THAN ONE HUNDRED MILLION DOLLARS FROM THE PREVIOUS QUARTER AND THE YEAR EARLIER PERIOD MR. O'ROURKE SAID HE ALSO EXPECTED SLUGGISH SALES IN EUROPE AND JAPAN TO PICK UP IN COMING MONTHS QUOTE WE STILL HAVE A FEW MORE YEARS WHERE THIS IS GOING TO BE VERY EXCITING NOTHING'S EVER PERFECT BUT IT'S GOING PRETTY GOOD NOW MR. O'ROURKE SAID AN ECONOMIC REBOUND CONTINUES TO ELUDE MADISON AVENUE WITH AGENCY HOLDING COMPANIES EXPECTED TO FINISH THE YEAR WITH UNSPECTACULAR EARNINGS GROWTH INDUSTRY ANALYSTS SAY BIG PUBLICLY TRADED ADVERTISING COMPANIES ARE EXPECTED TO EKE OUT RESPECTABLE EARNINGS GAINS BUT ANALYSTS SAY THAT MUCH OF THAT GROWTH WILL CONTINUE TO COME FROM SCORCHED EARTH COST CUTTING MEASURES NOT FROM NEW CLIENTS AND AD SPENDING INCREASES ANALYSTS EXPECT LACKLUSTER EARNINGS FROM INTERPUBLIC GROUP OF COMPANIES THE NEW YORK PARENT OF THE MCCANN ERICKSON LINTAS AND LOWE GROUP ADVERTISING NETWORKS INTERPUBLIC NORMALLY DELIGHTS ANALYSTS WITH PREDICTABLE EARNINGS GROWTH OF TWELVE PERCENT TO FOURTEEN PERCENT BUT ANALYSTS SAY THAT WON'T HAPPEN THIS YEAR AL GOTTESMAN MEDIA ANALYST AT PAINEWEBBER EXPECTS INTERPUBLIC TO REPORT FOURTH QUARTER EARNINGS OF SIXTY FIVE CENTS A SHARE UP JUST FIVE PERCENT FROM THE PREVIOUS YEAR'S QUARTER FOR THE YEAR MR. GOTTESMAN PREDICTS ONE DOLLAR AND SIXTY FIVE CENTS A SHARE REPRESENTING A TEN PERCENT INCREASE FROM LAST YEAR WHEN THE COMPANY POSTED EARNINGS OF ONE DOLLAR AND FIFTY CENTS BEFORE AN ACCOUNTING ADJUSTMENT RELATED TO POSTRETIREMENT BENEFITS QUOTE THEY'RE MAKING MONEY BY SAVING MONEY QUOTE MR. GOTTESMAN SAYS THERE ISN'T A WHOLE LOT OF REVENUE GROWTH DEAN WITTER ANALYST JAMES DOUGHERTY EXPECTS INTERPUBLIC'S FOURTH QUARTER EARNINGS TO RISE TEN PERCENT TO SIXTY EIGHT CENTS A SHARE HE PREDICTS THE COMPANY WILL REPORT YEAR END EARNINGS AT ONE DOLLAR AND SIXTY SEVEN CENTS ELEVEN PERCENT AHEAD OF LAST YEAR MR. DOUGHERTY SAID SOFT AD SPENDING IN EUROPE AND SEVERAL ACCOUNT LOSSES AT INTERPUBLIC'S LINTAS WERE CONTRIBUTING FACTORS IN A YEAR WHEN YOU'RE TRYING TO WRING OUT EVERY LAST PENNY IT ALL ADDS UP HE SAID OMNICOM GROUP NEW YORK PARENT COMPANY OF AGENCIES INCLUDING B. B. D. O. D. D. B. NEEDHAM AND T. B. W. A. ADVERTISING IS EXPECTED TO DO SOMEWHAT BETTER MR. DOUGHERTY SEES QUARTERLY EARNINGS OF EIGHTY FOUR CENTS A SHARE UP SIXTEEN PERCENT FROM THE YEAR EARLIER QUARTER AND YEAR END RESULTS OF TWO DOLLARS AND FIFTY SEVEN CENTS A SHARE UP SEVENTEEN PERCENT FROM NINETEEN NINETY TWO WHEN THE COMPANY REPORTED EARNINGS OF TWO DOLLARS AND TWENTY CENTS A SHARE BEFORE AN ACCOUNTING CHANGE MR. DOUGHERTY AND MANY OTHER ANALYSTS FOLLOW THE COMPANY'S FULLY DILUTED SHARES FOOTE CONE AND BELDING COMMUNICATIONS CHICAGO IS EXPECTED TO REPORT IMPROVED EARNINGS IN NINETEEN NINETY THREE ANALYSTS PREDICT THE COMPANY WILL REPORT FOURTH QUARTER EARNINGS OF ONE DOLLAR AND SIX CENTS UP EIGHTY PERCENT FROM THE YEAR EARLIER QUARTER WHEN THE COMPANY TOOK A CHARGE OF THREE POINT SIX MILLION DOLLARS OR THIRTY THREE CENTS A SHARE TO REVALUE CERTAIN ASSETS AND LIABILITIES FOR THE YEAR THE COMPANY IS EXPECTED TO REPORT NET INCOME OF TWO DOLLARS AND THIRTY CENTS A SHARE UP FIFTEEN PERCENT FROM THE YEAR EARLIER RECENT WINS AT FOOTE CONE'S NEW YORK OFFICE F. C. B. SLASH LEBER KATZ PARTNERS HAVE HELPED THE AGENCY RECOVER FROM A RETRENCHING PERIOD WHEN IT SHED UNPROFITABLE OPERATIONS AND RESTRUCTURED ITS ADVERTISING BUSINESS MOST RECENTLY THE NEW YORK OFFICE PICKED UP AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S GIANT CONSUMER LONG DISTANCE ACCOUNT W. P. P. GROUP AND SAATCHI AND SAATCHI COMPANY P. L. C. BOTH STRUGGLING TO SERVICE MOUNTAINS OF DEBT ARE EXPECTED TO POST MODEST RESULTS W. P. P. THE OWNER OF THE OGILVY AND MATHER AND J. WALTER THOMPSON AGENCIES AMONG OTHERS IS EXPECTED TO REPORT EARNINGS OF THREE CENTS PER AMERICAN DEPOSITARY RECEIPT IN THE SECOND HALF OF NINETEEN NINETY THREE COMPARED WITH EIGHT CENTS IN THE SECOND HALF OF NINETEEN NINETY TWO ACCORDING TO DEAN WITTER'S MR. DOUGHERTY FOR THE FULL YEAR OF NINETEEN NINETY THREE HE EXPECTS W. P. P. TO POST EIGHT CENTS PER A. D. R. COMPARED WITH FIVE CENTS IN NINETEEN NINETY TWO ONE A. D. R. EQUALS TWO FULLY DILUTED W. P. P. SHARES SAATCHI AND SAATCHI HAD BEEN EXPECTED TO POST STRONG RESULTS AT THE END OF NINETEEN NINETY THREE BUT THE COMPANY HAS BEEN SET BACK BY A PAIR OF MAJOR ACCOUNT LOSSES IN THE SECOND HALF LOSING CHRYSLER CORPORATION AS A CLIENT WHEN IT PULLED THE ONE HUNDRED THIRTY FIVE MILLION DOLLAR JEEP EAGLE ACCOUNT FROM SAATCHI'S C. M. E. KHBB AND LOSING HELENE CURTIS INDUSTRIES WHEN SAATCHI AND SAATCHI ADVERTISING RESIGNED FROM THE EIGHTY MILLION DOLLAR ACCOUNT TO RESOLVE POTENTIAL CLIENT CONFLICTS THE LOSSES WERE A BIG BLOW TO THEM MR. DOUGHERTY OBSERVED NOW THEY'RE RIGHT BACK IN THE SOUP MR. DOUGHERTY EXPECTS SAATCHI TO REPORT SIX MONTH EARNINGS OF EIGHT CENTS PER AMERICAN DEPOSITARY SHARE IN NINETEEN NINETY THREE COMPARED WITH A LOSS OF TWO CENTS IN THE SECOND HALF OF NINETEEN NINETY TWO FOR THE YEAR SAATCHI IS EXPECTED TO REPORT EARNINGS OF SIXTEEN CENTS PER ADS COMPARED WITH EIGHT CENTS IN THE PREVIOUS YEAR ONE ADS EQUALS THREE SAATCHI SHARES RAYTHEON COMPANY CITING STRONG SALES OF ITS AIRCRAFT PRODUCTS AND APPLIANCE GOODS SAID FOURTH QUARTER EARNINGS GREW NINE POINT ONE PERCENT THE LEXINGTON MASSACHUSETTS MAKER OF AIRCRAFT MISSILES ELECTRONIC EQUIPMENT AND APPLIANCES HAD NET INCOME OF ONE HUNDRED EIGHTY FIVE POINT FOUR MILLION DOLLARS OR ONE DOLLAR AND THIRTY SEVEN CENTS A SHARE COMPARED WITH ONE HUNDRED SEVENTY MILLION DOLLARS OR ONE DOLLAR AND TWENTY SIX CENTS A SHARE IN THE YEAR EARLIER PERIOD SALES CLIMBED FIVE PERCENT TO TWO POINT FIVE TWO BILLION DOLLARS FROM TWO POINT THREE NINE BILLION DOLLARS RAYTHEON SAID AIRCRAFT PRODUCTS SALES IN NINETEEN NINETY THREE ROSE TO ONE POINT FOUR SEVEN BILLION DOLLARS FROM ONE POINT TWO FIVE BILLION DOLLARS IN NINETEEN NINETY TWO OPERATING PROFIT FOR THAT PART OF RAYTHEON'S BUSINESS ROSE TO ONE HUNDRED EIGHTY TWO MILLION DOLLARS FROM ONE HUNDRED FORTY MILLION DOLLARS THE COMPANY'S ELECTRONICS SALES FELL TO FOUR POINT SEVEN NINE BILLION DOLLARS IN NINETEEN NINETY THREE FROM FOUR POINT NINE EIGHT BILLION DOLLARS THE YEAR BEFORE OPERATING PROFIT FOR THE SEGMENT ROSE TO EIGHT HUNDRED TWELVE MILLION DOLLARS FROM SEVEN HUNDRED SIXTY MILLION DOLLARS THE COMPANY ATTRIBUTED LOWER SALES TO DELAYS IN RECEIPT OF INTERNATIONAL GOVERNMENT ORDERS ENERGY AND ENVIRONMENTAL SALES FELL TO ONE POINT SEVEN TWO BILLION DOLLARS FROM ONE POINT SEVEN SIX BILLION DOLLARS OPERATING PROFIT WITHIN THE GROUP FELL TO ONE HUNDRED FIFTEEN MILLION DOLLARS FROM ONE HUNDRED FORTY SEVEN MILLION DOLLARS RAYTHEON SAID SALES FOR THE SEGMENT WERE HIGHER EXCLUDING NINETEEN NINETY TWO SALES OF SEISMOGRAPH AND GEOQUEST WHICH WERE SOLD IN NINETEEN NINETY TWO THE COMPANY ATTRIBUTED THE HIGHER SALES TO INCREASED CONSTRUCTION ACTIVITY BUT SAID PROFITS FELL BECAUSE OF CONTRACT RECEIPT TIMING AND OF HIGHER COSTS ON AN INTERNATIONAL PROJECT RAYTHEON SAID ITS SALES IN ITS MAJOR APPLIANCES SEGMENT ROSE TO ONE POINT TWO THREE BILLION DOLLARS FROM ONE POINT OH SEVEN BILLION DOLLARS WHILE OPERATING PROFIT ROSE TO FORTY EIGHT MILLION DOLLARS FROM THIRTY FOUR MILLION DOLLARS FOR THE FULL YEAR RAYTHEON REPORTED EARNINGS INCREASED NINE POINT ONE PERCENT TO SIX HUNDRED NINETY THREE MILLION DOLLARS OR FIVE DOLLARS AND ELEVEN CENTS A SHARE FROM SIX HUNDRED THIRTY FIVE POINT ONE MILLION DOLLARS OR FOUR DOLLARS AND SEVENTY TWO CENTS A SHARE SALES ROSE SLIGHTLY TO NINE POINT TWO BILLION DOLLARS FROM NINE POINT OH SIX BILLION DOLLARS TANDEM COMPUTERS INCORPORATED BENEFITING FROM COST CUTTING SURPRISED ANALYSTS WITH BETTER THAN EXPECTED FISCAL FIRST QUARTER NET INCOME ON A SLIGHT DECREASE IN REVENUE FOR THE PERIOD ENDED DECEMBER THIRTY FIRST THE MAINFRAME COMPUTER MAKER EARNED TWENTY FOUR POINT NINE MILLION DOLLARS OR TWENTY TWO CENTS A SHARE AFTER A ONETIME GAIN OF TWENTY THREE MILLION DOLLARS OR TWENTY CENTS A SHARE FROM THE PREVIOUSLY REPORTED SALE OF ITS APPLIED COMMUNICATIONS INCORPORATED SOFTWARE UNIT TANDEM'S PROFIT WAS FORTY TWO PERCENT ABOVE THE YEAR EARLIER QUARTER WHEN IT POSTED NET OF SEVENTEEN POINT FIVE MILLION DOLLARS OR SIXTEEN CENTS A SHARE AFTER A GAIN OF TWELVE POINT FOUR MILLION DOLLARS OR ELEVEN CENTS A SHARE FROM AN ACCOUNTING CHANGE OPERATING PROFIT WAS TWO CENTS A SHARE WELL ABOVE THE SIX CENT LOSS THAT ANALYSTS HAD EXPECTED TANDEM'S SHARES JUMPED ON THE NEWS GAINING ONE POINT SIX TWO FIVE DOLLARS OR THIRTEEN PERCENT TO THIRTEEN DOLLARS AND SEVENTY FIVE CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE REVENUE FOR THE RECENT PERIOD SLIPPED ONE POINT SEVEN PERCENT TO FOUR HUNDRED SEVENTY FIVE POINT SIX MILLION DOLLARS FROM FOUR HUNDRED EIGHTY THREE POINT EIGHT MILLION DOLLARS ANALYSTS HAD EXPECTED A LARGER DECLINE BUT TANDEM SURPRISED THEM BY SELLING MORE OF ITS NEWLY INTRODUCED HIMALAYA COMPUTERS THE IMPROVED PERFORMANCE COMES AFTER DISAPPOINTING FISCAL THIRD AND FOURTH QUARTERS WHERE TANDEM BLAMED WEAK RESULTS ON A POOR ECONOMY AND FIERCE PRICE COMPETITION AS MORE OF ITS CUSTOMERS MOVED AWAY FROM TANDEM'S EXPENSIVE MAINFRAME COMPUTERS TO SMALLER LESS EXPENSIVE COMPUTERS IN A NEWS RELEASE TANDEM'S PRESIDENT AND CHIEF EXECUTIVE JAMES G. TREYBIG SAID THAT QUOTE WE ARE PLEASED WITH OUR ABILITY TO GENERATE PROFIT IN A HISTORICALLY WEAK QUARTER QUOTE HE NOTED THAT TANDEM IS SEEING A RESURGENCE IN ITS MAJOR CUSTOMER BASE THE FINANCIAL SERVICES MARKET WHERE DEMAND HAS BEEN WEAK IN RECENT YEARS STEPHEN D. CHESEBRO FIFTY TWO YEARS OLD WAS NAMED CHIEF EXECUTIVE OF THIS INDUSTRIAL CORPORATION'S TENNECO GAS UNIT EFFECTIVE FEBRUARY TWENTY EIGHTH HE IS CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER MR. CHESEBRO WILL SUCCEED ROBERT C. THOMAS SIXTY FOUR WHO WILL RETIRE AS CHAIRMAN AND CHIEF EXECUTIVE THE CHAIRMAN'S POSITION WON'T BE FILLED ELDEC CORPORATION SAID SEVERAL CORPORATIONS HAVE EXPRESSED AN INTEREST IN ACQUIRING IT THE MAKER OF ELECTRONIC SYSTEMS FOR THE AEROSPACE INDUSTRY SAID IT HIRED A UNIT OF MORGAN STANLEY GROUP INCORPORATED TO HELP ANALYZE THE INQUIRIES NO FURTHER DETAILS WERE AVAILABLE EQUITIES ENDED HIGHER THURSDAY IN A VOLATILE TOKYO SESSION WITH HEAVY TRADING LONDON'S RECENT BULL RUN ENDED AS STOCKS WERE SENT LOWER ON PROFIT TAKING AND CORPORATE DEVELOPMENTS THOUGH A LATE RECOVERY HELPED LIFT PRICES FROM THE DAY'S LOWS THE GERMAN CENTRAL BANK'S DECISION TO LEAVE ITS INTEREST RATES UNCHANGED HELPED PUSH PRICES DOWN ON SEVERAL EUROPEAN BOURSES AROUND THE PACIFIC RIM STOCKS HIT ANOTHER SIX YEAR HIGH IN SYDNEY BUT FELL IN HONG KONG FOR THE FIRST TIME IN FIVE SESSIONS AS MOST ASIAN EXCHANGES LOST GROUND MEXICAN STOCKS RACED UP TWO POINT ONE PERCENT TO A RECORD WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED FOURTEEN POINT THREE EIGHT UP ZERO POINT ONE SEVEN REFLECTING HIGHER ASIA SLASH PACIFIC AND AMERICAN MARKETS AND LOWER EUROPEAN MARKETS MINING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED THIRTY ONE POINT TWO SEVEN UP TWO POINT SEVEN THREE OR TWO POINT ONE PERCENT WITH I. C. A. OF MEXICO POSTING A FIVE POINT EIGHT PERCENT GAIN IN ITS LOCAL CURRENCY CASINO STOCKS TRAILED AT TWO HUNDRED TWO POINT FIVE NINE DOWN EIGHT POINT TWO SIX OR THREE POINT NINE PERCENT WITH CIRCUS CIRCUS ENTERPRISES OF THE U. S. SLIDING FIVE POINT EIGHT PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH RALLIED FIVE HUNDRED TWENTY FOUR POINT EIGHT FIVE POINTS WEDNESDAY GAINED ONE HUNDRED FORTY FOUR POINT FIVE TWO TO NINETEEN THOUSAND ONE HUNDRED EIGHTY THREE POINT NINE TWO THE HIGHEST FINISH SINCE NOVEMBER SECOND IN TRADING FRIDAY THE NIKKEI ROSE ZERO POINT NINE ZERO POINT TO CLOSE THE MORNING SESSION AT NINETEEN THOUSAND ONE HUNDRED EIGHTY FOUR POINT EIGHT TWO THURSDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT FIVE HUNDRED FIFTY MILLION SHARES UP FROM FOUR HUNDRED THIRTEEN POINT THREE MILLION SHARES A DAY EARLIER AND THE MOST TURNOVER THIS YEAR GAINERS TOPPED DECLINERS FIVE HUNDRED THIRTY SEVEN TO FOUR HUNDRED EIGHTY SIX THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH SOARED TWENTY NINE POINT SEVEN SIX POINTS WEDNESDAY ADDED NINE POINT SIX FOUR TO ONE THOUSAND FIVE HUNDRED FIFTY POINT SEVEN NINE STOCKS WERE FIRST LED HIGHER BY GAINS IN NIKKEI INDEX FUTURES COOLED BY A BOND MARKET REBOUND THEN KNOCKED DOWN BY PROFIT TAKING IN THE AFTERNOON WHICH LED JAPANESE INVESTORS TO SELL BOTH NIKKEI TWO HUNDRED TWENTY FIVE AND TOPIX INDEX BASKETS THE MARKET WAS BUOYED A BIT BY A JAPANESE PARLIAMENTARY COMMITTEE'S PASSAGE THURSDAY MORNING OF THE GOVERNMENT'S POLITICAL REFORM BILL PUBLIC PENSION FUNDS SOLD SHARES IN THE EARLY AFTERNOON AND JAPANESE INSTITUTIONS SNAPPED UP THOSE STOCKS PROVIDING MOMENTUM FOR THE RUNUP THAT PROMPTED SNAGGING OF PROFITS A LATE BURST OF BUYING PUSHED THE NIKKEI UP ABOUT ONE HUNDRED POINTS IN THE SESSION'S FINAL MINUTES THE SECURITIES SECTOR LED THE ADVANCE WITH CONTINUING SUPPORT FROM HIGHER TRADING VOLUME WHICH REFLECTED OPTIMISM THAT THE MARKET'S RECENT BULL RUN WILL CONTINUE IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX FELL FIVE POINT ONE POINTS TO THREE THOUSAND FOUR HUNDRED SEVENTY POINT OH AFTER REBOUNDING FROM A SIXTEEN POINT TWO POINT LOSS THE F. T. THIRTY INDEX ROSE FIVE POINT OH POINTS TO TWO THOUSAND SIX HUNDRED FIFTY NINE POINT ONE THE F. T. S. E. TWO HUNDRED FIFTY INDEX RETREATED FROM RECORD LEVELS SHEDDING FORTY THREE POINT FOUR POINTS OR ONE PERCENT TO FOUR THOUSAND ONE HUNDRED FIVE POINT FOUR VOLUME WAS A HEAVY ONE POINT ONE BILLION SHARES COMPARED WITH ONE POINT THREE TWO BILLION SHARES A DAY EARLIER PROFIT TAKING HIT EARLY FOLLOWING THE F. T. ONE HUNDRED GAUGE'S ONE HUNDRED POINT GAIN IN THE PAST FOUR SESSIONS STOCKS ALSO WERE PRESSURED BY BEARISH STATEMENTS BY BRITISH COMPANIES ABOUT THEIR BUSINESS OUTLOOK BUT THE MARKET REGAINED SOME COMPOSURE LATE IN THE SESSION AS THE FOCUS RETURNED TO THE COUNTRY'S ECONOMIC FUNDAMENTALS IN FRANKFURT PRICES FELL IN A DIRECTIONLESS SESSION THE D. A. X. THIRTY STOCK INDEX LOST SEVENTEEN POINT NINE TWO POINTS TO TWO THOUSAND ONE HUNDRED SIXTEEN POINT FOUR SIX MANY INVESTORS WERE ON THE SIDELINES AND OTHERS SOLD POSITIONS AT PEAKS IN VOLATILITY IN PARIS STOCKS LOST GROUND FROM HEAVY SELLING IN THE MEDIA AND LUXURY RETAILING SECTORS WHICH COULD BE AFFECTED BY REPOSITIONING PLANS AND DISAPPOINTING EARNINGS IN AMSTERDAM SHARES DECLINED PARTLY BECAUSE OF A WEAKER DOLLAR IN FOREIGN EXCHANGE DEALINGS THE GERMAN DECISION TO MAINTAIN CURRENT INTEREST RATE LEVELS ADDED TO NEGATIVE SENTIMENT ON THE DUTCH BOURSE THOUGH A RATE CUT WASN'T WIDELY EXPECTED IN MILAN THE BROADEST MEASURE OF SHARES DROPPED ATTRIBUTED TO THE RETICENCE BY BOTH GERMANY AND ITALY TO REDUCE RATES IN MADRID STOCKS FELL BECAUSE OF PROFIT TAKING FOLLOWING THE RECENT RALLY AND BECAUSE SENTIMENT WAS DAMPED BY THE GERMAN RATE INACTION IN STOCKHOLM PRICES DROPPED BROADLY FROM RECORD LEVELS AS HIGHER SWEDISH MONEY MARKET RATES AND UNCHANGED GERMAN LENDING RATES SPARKED A SELLING WAVE DESPITE POSITIVE ECONOMIC INDICATORS IN SYDNEY SHARES FINISHED WITH STRONG GAINS AT THEIR HIGHEST LEVEL SINCE SEPTEMBER NINETEEN EIGHTY SEVEN AS FOREIGN ESPECIALLY ASIAN INVESTORS SCRAMBLED TO BUY THOUGH PROFIT TAKING DID PULL PRICES DOWN TOWARD THE CLOSE THE MARKET IS UP FOUR POINT THREE PERCENT THIS YEAR IN HONG KONG SHARES GAVE UP EARLY GAINS TO FINISH WITH DEEP LOSSES NEAR THE DAY'S LOWS AFTER A TWELVE PERCENT TOTAL GAIN IN THE PREVIOUS FOUR SESSIONS THE MARKET WAS CONSIDERED TOO HIGH FROM A TECHNICAL PERSPECTIVE WHICH SPURRED PROFIT TAKING IN SINGAPORE SHARES ENDED SHARPLY LOWER WITH THE MAIN INDEX'S ONE POINT NINE PERCENT DROP EXAGGERATED BY THIN DEALINGS IN KUALA LUMPUR PRICES DIVED TWO POINT NINE PERCENT IN BRISK TRADING EXTENDING THE PREVIOUS DAY'S SLIDE IN TAIPEI EQUITIES FELL ONE POINT SEVEN PERCENT IN A CONTINUING BROAD CONSOLIDATION IN SEOUL STOCKS FELL AFTER SWINGING WIDELY AMID UNSUBSTANTIATED RUMORS INCLUDING ANOTHER SOUTH KOREAN GOVERNMENT INTERVENTION TO CURB SPECULATIVE INVESTMENT FERVOR AND IN BANGKOK PRICES THUDDED FOUR POINT TWO PERCENT IN CHOPPY TRADING BUT IN MANILA STOCKS ADVANCED ONE POINT SIX PERCENT PACED BY THE TELEPHONE SECTOR AND WELLINGTON SHARES RALLIED ONE POINT SIX PERCENT EVEN AFTER MILD PROFIT TAKING IN MEXICO CITY STOCKS SOARED TO A NEW HIGH AS NERVOUSNESS ABOUT FRESH REBEL ATTACKS IN A SOUTHERN STATE SUBSIDED AND HOPES FOR A SETTLEMENT INCREASED FOREIGN INVESTORS POURED CASH INTO THE MARKET WHICH SOME ANALYSTS CONSIDER A BARGAIN IN TERMS OF SHARE PRICES IN RELATION TO ESTIMATED NINETEEN NINETY FOUR EARNINGS AMONG CORPORATE DEVELOPMENTS IN TOKYO HANWA FELL ONE HUNDRED YEN THE MAXIMUM DAILY LIMIT TO SIX HUNDRED SEVENTY SEVEN YEN SIX DOLLARS AND EIGHT CENTS SHARES OF THE TRADING COMPANY WHICH SPECIALIZES IN STEEL PRODUCTS HAD BEEN SUSPENDED WEDNESDAY WHEN HANWA SAID IT WOULD TAKE A SPECIAL CHARGE FOR HUGE SPECULATIVE TRADING LOSSES IN LONDON BASS SLUMPED SIXTEEN PENCE OR TWO POINT SIX PERCENT TO FIVE HUNDRED NINETY TWO PENCE EIGHT DOLLARS AND EIGHTY FOUR CENTS ON A DOWNBEAT STATEMENT AT THE ANNUAL MEETING THE BREWER AND HOTEL OPERATOR SAID THAT BRITAIN'S QUOTE GENTLE QUOTE ECONOMIC RECOVERY IS PROVIDING LITTLE BENEFIT FOR THE COMPANY AND THAT IT MUST SEEK IMPROVEMENTS BY MANAGEMENT ACTION RATHER THAN TRADING CONDITIONS IN FRANKFURT METALLGESELLSCHAFT PLUNGED SEVEN POINT FIVE MARKS OR THREE POINT ONE PERCENT TO TWO HUNDRED THIRTY SEVEN POINT FIVE OH MARKS ONE HUNDRED THIRTY SIX DOLLARS AND TWO CENTS AFTER THE SESSION ENDED METALLGESELLSCHAFT WHICH WAS APPARENTLY RESCUED FROM A BANKRUPTCY LAW FILING LAST WEEKEND BY A THREE POINT FOUR BILLION MARK ONE POINT NINE BILLION DOLLARS LIQUIDITY PACKAGE UNVEILED A RESTRUCTURING PLAN TO BECOME A MANAGEMENT HOLDING CONCERN WITH OPERATIONS IN TRADING PLANT CONSTRUCTION AND CHEMICALS AND TO SHED MANY ACTIVITIES IN GERMANY AND ABROAD 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END WHEN SAMUEL BARBER'S QUOTE VANESSA QUOTE PREMIERED AT THE MET IN NINETEEN FIFTY EIGHT IT WAS ALREADY A PERIOD PIECE LAST WEEK THE DALLAS OPERA IN A CO PRODUCTION WITH THE WASHINGTON OPERA GAVE THE PULITZER PRIZE WINNING WORK A NEW HEARING UNDER THE SUPERB MUSICAL DIRECTION OF STEVEN MERCURIO AND A VISUAL FACELIFT AT THE HANDS OF STAGE DIRECTOR MICHAEL KAHN AND SET DESIGNER MICHAEL YEARGAN PARADOXICALLY VANESSA NOW SEEMS BOTH MORE DATED AND MORE POWERFUL WITH A LIBRETTO BY GIAN CARLO MENOTTI BARBER'S TALE OF REPRESSION ENDURANCE AND SACRIFICE IS A DRAMATIC AND MUSICAL HODGEPODGE WHICH MUST HAVE TITILLATED AND COMFORTED ITS ORIGINAL AUDIENCE IN EQUAL MEASURE ITS PLOT REDUCES TO A FAIRYTALE NUGGET AN ABANDONED WOMAN LOCKS HERSELF INTO A TWENTY YEAR SECLUSION BUT FINDS HAPPINESS WHEN HER FORMER LOVER'S SON COMES AND TAKES HER AWAY VANESSA LIVES IN ISOLATION WITH HER MOTHER THE OLD BARONESS WHO HAS NOT SPOKEN TO HER DAUGHTER SINCE SHE RUINED HER LIFE BY SHUTTING HERSELF OFF FROM THE WORLD AND WITH HER TWENTY YEAR OLD NIECE ERIKA WHO MYSTERIOUSLY BUT CONVENIENTLY SEEMS TO HAVE NO PARENTS OF HER OWN THE YOUNG MAN NAMED ANATOL LIKE HIS LATE FATHER COMES TO VISIT THE FABLED WOMAN HE HAS HEARD HIS FATHER SPEAK OF ON HIS FIRST NIGHT HE SEDUCES AND INEVITABLY IMPREGNATES THE NIECE BUT WHEN SHE DEMANDS TO KNOW WHETHER HE LOVES HER HE REPLIES IN THE MODERN WAY THAT HE CANNOT PROMISE ANYTHING ETERNAL IN A GESTURE OF SACRIFICE SHE ALLOWS HER ENAMORED AUNT TO MARRY ANATOL AND TO GO OFF WITH HIM TO PARIS HAVING SUCCESSFULLY ABORTED HER CHILD BY RUSHING OUT INTO THE WINTRY WEATHER ERIKA WILL REMAIN IN THE COUNTRY HOUSE TAKING HER AUNT'S PLACE IN THE DARKENING HALL NOW SHE ANNOUNCES STOICALLY IT IS MY TURN TO WAIT AS THE CURTAIN FALLS DRAMATICALLY AND MUSICALLY THE OPERA LIVES LIKE ITS HEROINE IN THE PAST SET IN A NAMELESS NORTHERN COUNTRY IN NINETEEN OH FIVE VAGUE WITH REGARD TO SPECIFICS OF CHARACTER MOTIVATION AND PLOT VANESSA ALSO RINGS WITH THE HARMONIES AND MELODIC IMPULSES OF PUCCINI AND STRAUSS THE TWO GREATEST TWENTIETH CENTURY COMPOSERS OF MUSIC FOR THE FEMALE VOICE WHATEVER ITS DRAMATIC FLAWS AND INCONSISTENCIES THE OPERA REMAINS A SINGER'S DREAM WORK WITH FAMOUS SET PIECES INCLUDING ERIKA'S FIRST SCENE ARIA MUST THE WINTER COME SO SOON VANESSA'S GREAT GREETING TO HER MYSTERIOUS SUITOR DO NOT UTTER A WORD ANATOL AND THE OPERA'S CONCLUDING QUINTET EACH OF THE FOUR MAIN CHARACTERS GETS SEVERAL CHANCES TO SHINE INDIVIDUALLY AND IN ENSEMBLE BARBER WROTE THE TITLE ROLE WITH CALLAS IN MIND BUT THE SOPRANO SENSING THAT ERIKA WAS THE GREATER PART DECLINED AND AT THE PREMIERE THE CAST HEARD ON THE ONLY RECORDING OF THE OPERA INCLUDED ELEANOR STEBER AS VANESSA ROSALIND ELIAS AS THE NIECE NICOLAI GEDDA AS ANATOL AND GIORGIO TOZZI AS THE FATHERLY LOCAL DOCTOR STEBER SET THE STANDARD FOR ALL SUBSEQUENT PERFORMANCES IN DALLAS ASHLEY PUTNAM HAD GLAMOUR AND VOCAL POWER BUT SHE LACKED THE TENDERNESS THAT MUST BE PART OF VANESSA'S CHARACTER DICTION WAS A PROBLEM THROUGHOUT MUCH OF THE PERFORMANCE WHETHER THIS WAS DUE TO THE SINGERS THE ACOUSTICAL INEQUITIES OF DALLAS'S GROTESQUE MUSIC HALL OR TO THE OCCASIONAL LINGUISTIC PECULIARITIES OF MENOTTI'S LIBRETTO IS UNCERTAIN THANK GOODNESS FOR SUPERTITLES CALLAS WAS AS OFTEN RIGHT ERIKA CAN THREATEN TO WALK AWAY WITH THE SHOW SHE IS THE ONE CHARACTER WHO CHANGES DURING THE COURSE OF THE DRAMA THE YOUNG MEZZO MELANIE SONNENBERG CONVINCINGLY PORTRAYED ERIKA'S GROWTH FROM INGENUE TO WOUNDED WOMAN TO THE REINCARNATION OF HER AUNT WITH CONSIDERABLE PERSUASIVENESS MICHAEL REES DAVIS NO MATCH FOR NICOLAI GEDDA OFTEN MANIFESTED A STRIDENT TONE BUT IN HIS LOVE DUET WITH VANESSA MANAGED TO PERSUADE US AS WELL AS HER OF HIS PASSION VETERAN RICHARD STILWELL SANG THE OLD DOCTOR WITH TENDER MELLOWNESS SINCE ONE THEME OF THE OPERA IS HISTORICAL REPETITION IT WAS APPROPRIATE THAT ROSALIND ELIAS RETURNED TO DO THE OLD BARONESS THAT STERN QUOTE SILENT WOMAN QUOTE WHO SPENDS MOST OF THE OPERA SITTING IMPASSIVELY AND GLARING MENACINGLY AT HER YOUNGER RELATIVES IN SOME WAYS THE MOST IMPRESSIVE PERFORMANCE WAS THAT OF THE AMERICAN CONDUCTOR STEVEN MERCURIO WHO TRANSFORMED HIS ORCHESTRA INTO A STRONG SYMPHONIC ENSEMBLE AND BROUGHT OUT THOSE COLORS IN THE SCORE THAT MAKE IT SOUND LIKE A GREAT TONE POEM MICHAEL KAHN ARTISTIC DIRECTOR OF WASHINGTON'S SHAKESPEARE THEATRE DEVISED A PRODUCTION THAT SUCCEEDED DRAMATICALLY AT EVERY MOMENT EXCEPT ONE ERIKA UNCOVERING A PORTRAIT OF THE YOUNG BEAUTIFUL VANESSA SEEING THE PICTURE STEELS ERIKA IN HER DECISION TO CEDE ANATOL TO HER AUNT WHO HAS FOR SO LITTLE HAD TO WAIT FOR SO LONG BUT POORLY PLACED THE PICTURE WAS INVISIBLE TO HALF THE AUDIENCE WHO HAD TO GUESS AT ERIKA'S PROVOCATION FOR HER CLIMACTIC DECISION EXACTLY FOUR YEARS AGO IT LOOKED AS THOUGH THE DALLAS OPERA WAS SUFFERING FROM MORE THAN THE ECONOMIC DOLDRUMS WROUGHT IN THE LOCAL ECONOMY WITH THE RETIREMENT OF LONGTIME MUSIC DIRECTOR AND CO FOUNDER NICOLA RESCIGNO THE COMPANY FOUND ITSELF MUSICALLY AS WELL AS FINANCIALLY IN THE RED TEXANS THRIVE ON ADVERSITY TODAY UNDER PLATO KARAYANIS THE OPERA IS FINANCIALLY SOLVENT AND IN THE MIDST OF AN ARTISTIC REBIRTH GRAEME JENKINS ASSUMES THE POSITION OF MUSIC DIRECTOR NEXT YEAR VANESSA COMES TOWARD THE END OF AN IMAGINATIVELY DARING SEASON FLYING DUTCHMAN ROUNDS IT OUT FROM JANUARY TWENTY SEVENTH TO FEBRUARY FIFTH THE HIGHLIGHTS OF WHICH INCLUDED CECILIA BARTOLI IN A CLEVER MAGRITTE INSPIRED STAGING OF THE THE BARBER OF SEVILLE CONDUCTED BY RICHARD BONYNGE AND FRANCESCA ZAMBELLO'S STUNNING PRODUCTION OF LEOS JANACEK'S JENUFA WITH THE RADIANTLY EXPRESSIVE RENEE FLEMING MR. SPIEGELMAN WRITES ABOUT THE ARTS FROM DALLAS INVESTORS GOT BULLISH IN THE FINAL MINUTES OF TRADING AND PUSHED THE STOCK MARKET UP AS THE DOW JONES INDUSTRIAL AVERAGE MOVED FURTHER INTO RECORD TERRITORY STOCK PRICES HAD BEEN MIXED FOR MOST OF THE DAY BUT OBSERVERS SAID CONTINUED OPTIMISM ABOUT EARNINGS REPORTS STRONG BONDS AND GOOD ECONOMIC DATA IGNITED ACROSS THE BOARD BUYING RIGHT BEFORE THE CLOSE THE DOW INDUSTRIALS FINISHED SEVEN POINT FIVE NINE POINTS OR ZERO POINT TWO ZERO PERCENT HIGHER AT THREE THOUSAND EIGHT HUNDRED NINETY ONE POINT NINE SIX ITS SECOND STRAIGHT RECORD THE INDEX ALSO FINISHED AT A RECORD LEVEL MONDAY AND TIED THAT RECORD TUESDAY YESTERDAY'S ALL TIME HIGH IS THE EIGHTH RECORD FINISH THIS YEAR NEWS OF A JUMP IN DECEMBER HOUSING STARTS BOOSTED CYCLICAL ISSUES BETHLEHEM STEEL ROSE ONE QUARTER TO TWENTY TWO AND ONE HALF AND ALLIEDSIGNAL ROSE SEVEN EIGHTHS TO SEVENTY NINE AND ONE QUARTER MEANWHILE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED ZERO POINT TWO EIGHT POINT TO TWO HUNDRED SIXTY THREE POINT TWO THREE ITS SECOND CONSECUTIVE RECORD CLOSE THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX GAINED ZERO POINT SIX EIGHT POINT TO END AT FOUR HUNDRED SEVENTY FOUR POINT NINE EIGHT BOTH INDEXES HAD SPENT MOST OF THE DAY LOWER BIG BOARD VOLUME TOTALED THREE HUNDRED TEN POINT FOUR MILLION SHARES COMPARED WITH THREE HUNDRED TEN POINT EIGHT MILLION SHARES WEDNESDAY ADVANCING ISSUES LED DECLINING BY ONE THOUSAND ONE HUNDRED TEN TO NINE HUNDRED SIXTY THE THIRTY YEAR TREASURY BOND WAS HIT EARLY ON BY THE ENCOURAGING ECONOMIC DATA BUT QUICKLY REVERSED COURSE AND GAINED THREE EIGHTHS POINT ITS YIELD FELL TO SIX POINT TWO SIX PERCENT WITH THE DOW INDUSTRIALS TESTING NEW HEIGHTS EVERY DAY ANALYSTS SUGGESTED THREE THOUSAND NINE HUNDRED AND PERHAPS FOUR THOUSAND ON THE BLUE CHIP AVERAGE MAY BE WITHIN REACH OVER THE NEXT FEW WEEKS TOMORROW'S QUOTE DOUBLE WITCHING QUOTE SESSION COULD MAKE FOR A LITTLE VOLATILITY SOME OBSERVERS SAID THOUGH THEY AREN'T EXPECTING ANY FIREWORKS OPTIONS ON INDIVIDUAL STOCKS AND SOME STOCK INDEXES ARE DUE TO EXPIRE THE NASDAQ COMPOSITE INDEX RECOUPED WHAT IT LOST WEDNESDAY RISING THREE POINT SEVEN FOUR POINTS TO END AT A RECORD SEVEN HUNDRED NINETY THREE POINT OH TWO TECHNOLOGY STOCKS POWERED THE MOVE DURING BOTH SESSIONS NASDAQ TRADED INTEL OF SANTA CLARA CALIFORNIA ROSE ONE AND ONE QUARTER TO SIXTY THREE AND THREE QUARTERS AFTER STUMBLING FOUR AND THREE QUARTERS WEDNESDAY FOLLOWING EARNINGS RESULTS THAT WERE BELOW EXPECTATIONS ALEXANDER BROWN AND SONS INCORPORATED LOWERED ITS RATING ON THE CHIP MAKER TO BUY FROM STRONG BUY YESTERDAY MORNING MICROSOFT ROSE THREE TO EIGHTY SIX AND ONE QUARTER IN NASDAQ TRADING ON IMPROVED FISCAL SECOND QUARTER NET INCOME REPORTED LATE WEDNESDAY OF NINETY FIVE CENTS A SHARE UP FROM SEVENTY EIGHT CENTS A YEAR EARLIER SEVERAL BROKERAGE FIRMS UPGRADED THE REDMOND WASHINGTON COMPANY'S SHARES THOUGH COWEN AND COMPANY LOWERED ITS RECOMMENDATION TO NEUTRAL FROM BUY THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED ONE POINT FIVE THREE TO FOUR HUNDRED EIGHTY FOUR POINT EIGHT ONE AN ALL TIME HIGH TANDEM COMPUTERS MOVED ONE AND FIVE EIGHTHS HIGHER TO THIRTEEN AND THREE QUARTERS ON A GOOD EARNINGS REPORT APPLE COMPUTER CUPERTINO CALIFORNIA GAINED FIVE EIGHTHS TO TWENTY NINE AND SEVEN EIGHTHS ON NASDAQ BUT AFTERHOURS TRADING ON REUTERS HOLDINGS' ELECTRONIC INSTINET SYSTEMS SHOWS THE LAST TRADE AT THIRTY ONE AND ONE EIGHTH ON SIGNIFICANT VOLUME AFTER THE MARKET CLOSED THE COMPUTER COMPANY REPORTED FISCAL FIRST QUARTER EARNINGS OF THIRTY FOUR CENTS A SHARE ONE CENT ABOVE ANALYSTS' ESTIMATES THOUGH BELOW THE ONE DOLLAR AND THIRTY THREE CENTS EARNED A YEAR AGO THE COMPUTER MAKER ALSO SAID OPERATING EXPENSES FELL AND MACINTOSH PERSONAL COMPUTER SALES ROSE BUT COMPUTER ASSOCIATES INTERNATIONAL TOPPLED THREE AND ONE HALF TO FORTY ONE A FIFTY PERCENT JUMP IN FISCAL THIRD QUARTER EARNINGS REPORTED WEDNESDAY WASN'T ENOUGH TO PLEASE INVESTORS WHO CLING TO MEMORIES OF THE PREVIOUS QUARTER'S EIGHTY TWO PERCENT LEAP ANALYSTS SAID ELSEWHERE ON THE EARNINGS FRONT KIMBERLY CLARK SURGED THREE AND FIVE EIGHTHS TO FIFTY SIX AND ONE EIGHTH THE CONSUMER PRODUCTS CONCERN SAID FOURTH QUARTER EARNINGS CAME IN AT EIGHTY EIGHT CENTS A SHARE COMPARED WITH A LOSS OF THIRTY FIVE CENTS ON A CHARGE A YEAR EARLIER WALL STREET EXPECTATIONS WERE FOR NET INCOME OF SEVENTY NINE CENTS DURING THE LATEST QUARTER BOMBAY DECLINED TWO AND ONE HALF TO TWENTY NINE AND ONE HALF THE FORT WORTH TEXAS OPERATOR OF HOME FURNISHINGS RETAIL STORES POSTED FISCAL SECOND QUARTER EARNINGS OF FORTY CENTS A SHARE WHICH REFLECT A TWO FOR ONE STOCK SPLIT PAID DECEMBER THIRTY FIRST NINETEEN NINETY THREE ANALYSTS HAD LOOKED FOR THE COMPANY TO EARN THIRTY NINE CENTS A SHARE AMONG NEW ISSUES PLANTRONICS ZOOMED TO FIFTEEN ABOVE ITS INITIAL OFFERING PRICE OF TWELVE DOLLARS AND FIFTY CENTS A SHARE LATE WEDNESDAY PLANTRONICS A DESIGNER AND MAKER OF LIGHTWEIGHT TELEPHONE HEADSETS SAID IT WILL USE PROCEEDS TO FUND A RECAPITALIZATION PLAN THAT WILL REDUCE THE COMPANY'S DEBT AND INTEREST EXPENSES AMERICAN DEPOSITARY RECEIPTS OF SOME MEXICAN STOCKS ROSE TELEFONOS DE MEXICO CLIMBED ONE AND FIVE EIGHTHS TO SIXTY NINE AND THREE EIGHTHS AFTER IT SAID IT WILL EXPAND ITS LINE NETWORK TWELVE PERCENT OR ABOUT NINE HUNDRED THOUSAND LINES THIS YEAR TO EIGHT POINT THREE MILLION LINES OTHERS GAINED GROUND AS INVESTORS DISMISSED EXPECTED REBEL ACTIVITY IN MEXICO AS A THREAT TO LATIN AMERICAN MARKETS VITRO ADDED ONE AND THREE EIGHTHS TO TWENTY FOUR GRUPO FINANCIERO SERFIN INCREASED TWO AND ONE EIGHTH TO THIRTY TWO AND ONE HALF GRUPO TRIBASA GAINED ONE AND ONE QUARTER TO THIRTY FOUR AND EMPRESAS I. C. A. SOCIEDAD CONTROLADORA JUMPED TWO TO THIRTY CHILEAN CHEMICAL FERTILIZER CONCERN SOCIEDAD QUIMICA Y. MINERA ADDED SEVEN EIGHTHS TO THIRTY ONE AND SEVEN EIGHTHS AND ARGENTINA'S BANCO DE GALICIA EDGED UP ONE HALF TO FORTY ONE AND ONE EIGHTH IN NASDAQ TRADING BUT TRANSPORTATION STOCKS ENDED WEAK C. S. X. FELL TWO AND THREE EIGHTHS TO EIGHTY SIX AND ONE HALF ON LOWER FOURTH QUARTER EARNINGS OF ONE DOLLAR AND FORTY SIX CENTS A SHARE DOWN FROM ONE DOLLAR AND FORTY SEVEN CENTS A YEAR EARLIER UNION PACIFIC DROPPED TWO AND ONE HALF TO SIXTY THREE AND SEVEN EIGHTHS DESPITE POSTING IMPROVED FOURTH QUARTER EARNINGS TIME WARNER GAINED SEVEN EIGHTHS TO FORTY THE MEDIA GIANT SAID ITS BOARD HAS ADOPTED A SHAREHOLDER RIGHTS PLAN THAT DOES NOT PRECLUDE A BONA FIDE ALL CASH OFFER FOR ALL TIME WARNER'S OUTSTANDING STOCK BEAR STEARNS AND COMPANY RAISED ITS RATING ON TIME WARNER TO STRONG BUY FROM BUY UNION PACIFIC CORPORATION SAID FOURTH QUARTER PROFIT JUMPED TWENTY TWO PERCENT DUE TO RECORD TRAFFIC LEVELS AT THE COMPANY'S RAILROAD AND TRUCKING UNITS AND STRONG SALES BY ITS NATURAL RESOURCES UNIT THE BETHLEHEM PENNSYLVANIA TRANSPORTATION COMPANY SAID NET INCOME ROSE TO TWO HUNDRED THIRTY FIVE MILLION DOLLARS OR ONE DOLLAR AND FOURTEEN CENTS A SHARE FROM ONE HUNDRED NINETY TWO MILLION DOLLARS OR NINETY FOUR CENTS A SHARE A YEAR EARLIER REVENUE ROSE THREE PERCENT TO ONE POINT NINE EIGHT BILLION DOLLARS THE COMPANY SAID THAT ALTHOUGH IT'S CONCERNED ABUT ENERGY PRICES RECENT MOMENTUM IN THE ECONOMY MAKES IT QUOTE CAUTIOUSLY OPTIMISTIC QUOTE ABOUT THE OUTLOOK FOR THIS YEAR FOR ALL OF NINETEEN NINETY THREE NET FELL TWENTY SEVEN PERCENT TO FIVE HUNDRED THIRTY MILLION DOLLARS OR TWO DOLLARS AND FIFTY EIGHT CENTS A SHARE FROM SEVEN HUNDRED TWENTY EIGHT MILLION DOLLARS OR THREE DOLLARS AND FIFTY SEVEN CENTS A SHARE IN NINETEEN NINETY TWO RESULTS FOR NINETEEN NINETY THREE INCLUDED A ONE HUNDRED SEVENTY FIVE MILLION DOLLAR CHARGE FOR RETIREE BENEFITS AND A SIXTY ONE MILLION DOLLAR ONE TIME TAX ADJUSTMENT WITHOUT THOSE CHARGES THE COMPANY SAID IT WOULD HAVE EARNED SEVEN HUNDRED SIXTY SIX MILLION DOLLARS UP FIVE PERCENT FROM NINETEEN NINETY TWO REVENUE FOR ALL OF NINETEEN NINETY THREE ROSE FOUR PERCENT TO SEVEN POINT FIVE SIX BILLION DOLLARS GENENTECH INCORPORATED RIDING THE RESURGENCE OF ITS HEART ATTACK DRUG ACTIVASE SAID FOURTH QUARTER EARNINGS TRIPLED TO EIGHTEEN POINT SEVEN MILLION DOLLARS OR SIXTEEN CENTS A SHARE FROM SIX POINT TWO MILLION DOLLARS OR FIVE CENTS A SHARE A YEAR EARLIER THE BIOTECH COMPANY'S PERFORMANCE WHICH HIT THE HIGH END OF WALL STREET FORECASTS DID LITTLE TO STIR ITS STOCK THOUGH GENENTECH WAS QUOTED IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT FIFTY DOLLARS AND FIFTY CENTS UP TWENTY FIVE CENTS REVENUE ROSE FOURTEEN PERCENT TO ONE HUNDRED SIXTY ONE POINT FIVE MILLION DOLLARS FROM ONE HUNDRED FORTY TWO MILLION DOLLARS FOR THE FULL YEAR GENENTECH'S PROFIT SURGED TO FIFTY EIGHT POINT NINE MILLION DOLLARS OR FIFTY CENTS A SHARE FROM TWENTY POINT EIGHT MILLION DOLLARS OR EIGHTEEN CENTS A SHARE REVENUE ROSE NINETEEN PERCENT TO SIX HUNDRED FORTY NINE POINT SEVEN MILLION DOLLARS FROM FIVE HUNDRED FORTY FOUR POINT THREE MILLION DOLLARS THE COMPANY CITED ACTIVASE'S THIRTY PERCENT SALES GROWTH WHICH PROPELLED THE DRUG TO A TWO THIRDS MARKET SHARE AFTER ITS PERFORMANCE IN A LARGE CLINICAL TRIAL BY HEART ATTACK PATIENTS LAST YEAR GENENTECH PRESIDENT G. KIRK RAAB SAID HE EXPECTS PROFIT GROWTH TO CONTINUE IN NINETEEN NINETY FOUR AS THE COMPANY BEGINS TO REALIZE SALES FROM TWO NEW PRODUCTS RECENTLY GRANTED MARKET APPROVAL BY THE FOOD AND DRUG ADMINISTRATION PULMOZYME FOR CYSTIC FIBROSIS AND NUTROPIN FOR GROWTH PROBLEMS DUE TO KIDNEY FAILURE SEPARATELY GENENTECH SAID A FEDERAL COURT IN SAN FRANCISCO DISMISSED A LONGSTANDING PATENT LAWSUIT BY RHONE POULENC RORER INCORPORATED AGAINST GENENTECH AND ITS LICENSEE MILES INCORPORATED IN A NINETEEN EIGHTY THREE LAWSUIT RHONE POULENC'S PREDECESSOR RORER GROUP INCORPORATED CHARGED GENENTECH'S GENE SPLICED VERSION OF A BLOOD CLOTTING SUBSTANCE KNOWN AS FACTOR EIGHT VIOLATED A SCRIPPS INSTITUTE PATENT COVERING NATURAL PLASMA DERIVED FACTOR EIGHT WHICH WAS LICENSED TO RORER THE LAWSUIT'S DISMISSAL CLEARING THE WAY FOR GENENTECH TO RECEIVE ROYALTIES ON FACTOR EIGHT SALES FOLLOWS A RECENTLY REPORTED SETTLEMENT OF THE DISPUTE WITH RORER AND SCRIPPS BY GENENTECH AND MILES A UNIT OF GERMANY'S FARBENFABRIKEN BAYER GMBH A. M. R. CORPORATION POSTED A WIDENED FOURTH QUARTER LOSS LARGELY DUE TO A FIVE DAY STRIKE BY FLIGHT ATTENDANTS AT ITS AMERICAN AIRLINES UNIT THAT WAS MORE COSTLY THAN INITIALLY FORECAST A. M. R. SAID IT HAD A LOSS OF TWO HUNDRED FIFTY THREE MILLION DOLLARS OR THREE DOLLARS AND FIFTY FIVE CENTS A SHARE COMPARED WITH A YEAR EARLIER TWO HUNDRED MILLION DOLLARS OR TWO DOLLARS AND SIXTY SIX CENTS A SHARE THE STRIKE CUT AFTER TAX EARNINGS BY ABOUT ONE HUNDRED NINETY MILLION DOLLARS INSTEAD OF THE ONE HUNDRED SIXTY MILLION DOLLARS A. M. R. FORECAST WIPING OUT A. M. R.'S PROFIT FOR THE YEAR AND RESULTING IN ITS FOURTH CONSECUTIVE ANNUAL LOSS BUT AMERICAN'S CHIEF FINANCIAL OFFICER MICHAEL J. DURHAM SAID A. M. R. IS QUOTE FAIRLY OPTIMISTIC ABOUT TRENDS FOR AIRLINES IN NINETEEN NINETY FOUR QUOTE CITING A SLIGHT STRENGTHENING IN THE ECONOMY AS WELL AS CAPACITY CUTBACKS BY THE NATION'S AIRLINES WITHOUT LOSSES FROM THE STRIKE AND OTHER SPECIAL CHARGES AMERICAN WOULD HAVE COME CLOSE TO BREAKING EVEN IN THE FOURTH QUARTER HE SAID WHILE THE COMPANY DOESN'T CONSIDER THAT SATISFACTORY HE SAID IN A BUSINESS AS CYCLICAL AS OURS BREAK EVEN IS NOT A BAD MOVEMENT IT'S A SIGNIFICANT IMPROVEMENT IN FOURTH QUARTER EARNINGS OF RECENT YEARS FOURTH QUARTER REVENUE WAS THREE POINT FIVE NINE BILLION DOLLARS UP ONLY ZERO POINT FOUR PERCENT FROM A YEAR EARLIER THREE POINT FIVE EIGHT BILLION DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING A. M. R. CLOSED AT SEVENTY ONE DOLLARS AND TWENTY FIVE CENTS A SHARE UP ONE POINT THREE SEVEN FIVE DOLLARS THE FINANCIAL COMMUNITY ALSO APPEARS TO BE CAUTIOUSLY UPBEAT ABOUT THE AIRLINE INDUSTRY THIS YEAR CHASE MANHATTAN BANK SAID YESTERDAY THAT IT EXPECTS THE INDUSTRY TO SHOW SIGNIFICANT IMPROVEMENT THIS YEAR FROM COST CUTTING CAPACITY REDUCTIONS AND ROUTE REALIGNMENTS IN A PRIVATE BRIEFING TO SELECTED CLIENTS PORTIONS OF WHICH WERE RELEASED YESTERDAY CHASE SAID THE INDUSTRY SHOULD SEE OPERATING EARNINGS IN THE RANGE OF FOUR BILLION DOLLARS TO FIVE BILLION DOLLARS HOWEVER SOME ANALYSTS WERE MORE CAUTIOUS THAN OPTIMISTIC I DON'T THINK WE'LL SEE ANYTHING LIKE LOSSES OF THE PAST FOUR YEARS SAID VIVIAN LEE AN ANALYST WITH SMITH BARNEY SHEARSON BUT I CAN'T SIT HERE IN JANUARY AFTER AN EARTHQUAKE AND THE WORST TRAVEL WEATHER IN YEARS AND SAY WE'RE HAVING A PROFIT IN NINETY FOUR BUT I CAN'T SEE WHAT ELSE CAN GO WRONG AMERICAN HAS BEEN CUTTING UNPROFITABLE ROUTES AND OPERATIONS TO SAVE MONEY AND THIS YEAR FOR THE FIRST TIME SINCE NINETEEN EIGHTY ONE WILL HAVE LESS CAPACITY THAN IN THE PRECEDING YEAR AMERICAN WILL CUT CAPACITY OVERALL BY FOUR POINT EIGHT PERCENT WITH A SEVEN PERCENT CUT IN DOMESTIC ROUTES BALANCED BY A SLIGHT INCREASE IN INTERNATIONAL FLIGHTS THE COMPANY ALSO PLANS TO LAY OFF UP TO FIVE THOUSAND EMPLOYEES THIS YEAR AND NEXT HOWEVER BECAUSE THE WORKERS WHO WILL REMAIN WILL HAVE GREATER SENIORITY AND THUS HIGHER PAY A. M. R.'S SALARY AND BENEFIT COSTS PER WORKER THIS YEAR WILL JUMP SEVEN PERCENT A. M. R.'S EFFORTS TO CUT COSTS MAY BE AIDED SOMEWHAT BY LOWER FUEL PRICES AMERICAN PAID EIGHT PERCENT TO NINE PERCENT LESS FOR JET FUEL IN THE FOURTH QUARTER WHICH COULD TRANSLATE INTO SAVINGS THIS YEAR OF UP TO ONE HUNDRED FIFTY MILLION DOLLARS IF FUEL PRICES REMAIN LOW MR. DURHAM SAID A. M. R. HAD SOME SPECIAL CHARGES IN THE FOURTH QUARTER INCLUDING FORTY SIX MILLION DOLLARS IN LEGAL COSTS AND FOR THE SETTLEMENT OF LITIGATION REGARDING THE SUSPENSION LAST YEAR OF ITS CONFIRM HOTEL COMPUTER RESERVATION SYSTEM CHARGES ALSO STEMMED FROM PREVIOUSLY ANNOUNCED EMPLOYEE LAYOFFS PLANNED FOR THIS YEAR TOGETHER THOSE CHARGES AMOUNTED TO SIXTY TWO MILLION DOLLARS AFTER TAXES OR EIGHTY TWO CENTS A SHARE FOR THE YEAR A. M. R. HAD A NET LOSS OF ONE HUNDRED TEN MILLION DOLLARS OR TWO DOLLARS AND TWENTY THREE CENTS A SHARE ON REVENUE OF FIFTEEN POINT EIGHT TWO BILLION DOLLARS IN NINETEEN NINETY TWO A. M. R.'S NET LOSS WAS NINE HUNDRED THIRTY FIVE MILLION DOLLARS OR TWELVE DOLLARS AND FORTY NINE CENTS A SHARE ON REVENUE OF FOURTEEN POINT FOUR BILLION DOLLARS LAST YEAR'S LOSS INCLUDES A SEVENTY NINE MILLION DOLLAR AFTER TAX CHARGE FOR RETIREMENT OF AIRCRAFT AND A POSITIVE ADJUSTMENT FOR A CHANGE IN AN ESTIMATE RELATED TO PASSENGER REVENUE THE NINETEEN NINETY TWO RESULTS INCLUDE THE EFFECT OF TWO ACCOUNTING CHANGES AS WELL AS A ONE HUNDRED NINE MILLION DOLLAR AFTER TAX PROVISION RELATED TO THE SUSPENSION OF THE CONFIRM PROJECT THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND ONE HALF PERCENT HIGH TWO PERCENT LOW TWO AND ONE HALF PERCENT NEAR CLOSING BID THREE PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH SEVEN PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH NINE PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT ONE TWO PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE FOUR PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT ONE FIVE PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO THREE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FIFTY NINE DAYS THREE POINT THREE TWO PERCENT TWO HUNDRED SIXTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE FOUR PERCENT THIRTY DAYS THREE POINT ONE FIVE PERCENT SIXTY DAYS THREE POINT ONE NINE PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE THREE PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT FIVE SIX PERCENT THREE MONTHS TWO POINT SEVEN OH PERCENT SIX MONTHS TWO POINT NINE SIX PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH TWO PERCENT ONE MONTH THREE POINT OH NINE PERCENT THREE MONTHS THREE POINT TWO FIVE PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH ONE PERCENT THIRTY DAYS THREE POINT OH TWO PERCENT SIXTY DAYS THREE POINT OH FIVE PERCENT NINETY DAYS THREE POINT OH EIGHT PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE THREE PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE SEVEN PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FOUR MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT FIVE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT THREE AND FIVE SIXTEENTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT SIX MONTHS THREE AND THREE QUARTERS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT NINE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY JANUARY EIGHTEENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE NINE PERCENT THIRTEEN WEEKS THREE POINT ONE FIVE PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT NINE THREE PERCENT SIXTY DAYS SEVEN PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT NINE OH PERCENT SIXTY DAYS SEVEN PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT OH FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN FOUR PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS CONFUCIUS IS BRANCHING OUT OR MAYBE IT'S JUST RHONDA LASHEN OF GAHANNA OHIO WITH HER TWO YEAR OLD COMPANY QUOTE FORTUNATELY YOURS QUOTE MS. LASHEN COOKS UP FORTUNE COOKIES AND SELLS THEM TO BUSINESSES AND INDIVIDUALS THAT HOPE A NEW MARKETING GIMMICK WILL BRING FORTUNE TO THEIR CAUSE CONSIDER SCHERING PLOUGH CORPORATION THE COMPANY MAILED TWO HUNDRED FIFTY THOUSAND COOKIES TO PHYSICIANS TO PROMOTE AN ANTIFUNGAL DRUG THAT IS PRIMARILY USED TO TREAT ATHLETE'S FOOT JOCK ITCH AND BODY RINGWORMS CONFUCIUS SAY PATIENTS BENEFIT TWICE FROM DUAL ACTION LOTRISONE READS THE MESSAGE A COLUMBUS OHIO BRANCH OF BANC ONE CORPORATION USED GREEN MINT FLAVORED COOKIES TO MARKET ITS SECURITIES AND TRUSTS ITS ENTRY WHEN IS FIVE PERCENT BETTER THAN SIX PERCENT ASK U. S. SAYS AMY PRATER A BANC ONE SENIOR TELLER IT GETS DULL GOING TO THE BANK EVERY DAY WE PUT THESE ON THE COUNTER LIKE LOLLIPOPS AND PEOPLE ASKED A LOT OF QUESTIONS LANE BRYANT CLOTHING STORES PASSED OUT COOKIES AT STORE ENTRANCES OFFERING KIND WORDS AND DISCOUNTS QUOTE WE THINK YOU'RE SENSATIONAL SAVE TWENTY PERCENT OFF YOUR ENTIRE PURCHASE AT LANE BRYANT COMPANIES ACCOUNTED FOR THE BULK OF MS. LASHEN'S ONE HUNDRED EIGHTY THOUSAND DOLLARS IN SALES LAST YEAR BUT SHE DID A LITTLE SOOTHSAYING ON THE SIDE FOR LOVERS WHO APPARENTLY REALLY LIKE HER PINK STRAWBERRY COOKIES FAVORITES INCLUDE THE PASSION IN YOUR MIND IS GOING TO BE MATCHED BY THE PASSION IN YOUR BODY AND HOT KISSES WILL COVER YOUR BODY SOON MS. LASHEN ASSURES THAT THERE'S NOTHING X. RATED SOME DOCTORS USE THE COOKIES FOR THANK YOUS A COLUMBUS UROLOGIST AMUSED COLLEAGUES WITH A COOKIE BUSINESS CARD SAYING UR INE GOOD HANDS AND A NEARBY OPHTHALMOLOGIST MAILED COOKIE BOXES TO TWO THOUSAND FIVE HUNDRED PATIENTS AND REFERRAL SOURCES AT CHRISTMAS THE FORTUNES READ CONFUCIUS SAY FOCUS ON THE NEW YEAR WITH GOOD VISION AN EAGER JOB CANDIDATE USED A GIANT CHOCOLATE COVERED COOKIE AS A FOLLOW UP AT A COLUMBUS RADIO STATION QUOTE INCREASE YOUR FORTUNE HIRE DANA NAY THE LUCKY MS. NAY GOT THE JOB NOT SO FORTUNATE WERE THE LOT WHO BOUGHT MS. LASHEN'S LOTTERY COOKIES WHICH PROFESSED TO CONTAIN LUCKY WINNING NUMBERS NO ONE EVER WON IT'S TOO BAD SHE SAYS I WOULD'VE LIKED THAT WITCO CORPORATION SAID IT WILL POST A FOURTH QUARTER CHARGE OF SIXTY POINT ONE MILLION DOLLARS OR ONE DOLLAR AND TEN CENTS A SHARE TO COVER ENVIRONMENTAL CLEANUP AND COMPLIANCE EXPECTED LOSSES FROM DISPOSING OF SOME OPERATIONS AND A FOUR PERCENT REDUCTION IN ITS WORK FORCE THE CHARGE WHICH TOTALS NINETY TWO POINT SIX MILLION DOLLARS BEFORE TAXES SHOULD RESULT IN A LOSS FOR THE QUARTER BUT OPERATING PROFIT AT WITCO QUOTE SHOULD BE CLOSE TO MEETING QUOTE ANALYSTS' ESTIMATES FOR THE QUARTER OF FORTY CENTS TO FORTY FIVE CENTS A SHARE OR A TOTAL OF TWENTY TWO MILLION DOLLARS TO TWENTY FOUR POINT EIGHT MILLION DOLLARS C. R. SODERLIND SENIOR VICE PRESIDENT SAID THE COMPANY WHICH ESTIMATES NINETEEN NINETY THREE REVENUE AT ABOUT TWO POINT TWO BILLION DOLLARS PLANS TO REPORT EARNINGS TOWARD THE END OF NEXT WEEK THE MOVES ARE PART OF A RESTRUCTURING BEGUN ABOUT A YEAR AGO BY THE NEW YORK SPECIALTY CHEMICALS CONCERN THE GERMAN UNIT OF PROCTER AND GAMBLE COMPANY REVISED ITS PLAN TO ACQUIRE GERMAN HOUSEHOLD PAPER GROUP V. P. SCHICKEDANZ A. G. AFTER THE EUROPEAN UNION COMMISSION SAID AN INITIAL PROPOSAL COULD POSE COMPETITION PROBLEMS IN THE FEMININE PROTECTION PRODUCTS MARKET A REVISED PROPOSAL SUBMITTED BY PROCTER AND GAMBLE GMBH TO E. U. COMPETITION AUTHORITIES CALLS FOR THE SIMULTANEOUS DIVESTMENT OF VPS'S DIAPER BUSINESS AND ITS FEMININE HYGIENE BUSINESS ASSOCIATED WITH ITS BLUMIA FEMINA AND TAMPONA BRANDS AND ITS PRIVATE LABEL ACTIVITY THE INITIAL PLAN SUBMITTED LAST MONTH CALLED ONLY FOR DIVESTMENT OF THE DIAPER BUSINESS OF VPS A UNIT OF GUSTAV AND GRETE SCHICKEDANZ HOLDING K. G. A. A. THE DEAL FOR THE CINCINNATI CONSUMER PRODUCTS COMPANY TO ACQUIRE ALL VPS SHARES WAS BEING CONSIDERED UNDER THE FIRST STAGE OF THE E. U.'S MERGER INVESTIGATION PROCESS AND THE COMMISSION HADN'T YET INDICATED WHETHER IT WOULD LAUNCH A MORE DETAILED PROBE BUT CONCERNS WERE EXPRESSED TO P. AND G. SOURCES SAID THAT THE ACQUISITION WOULD GRANT IT TOO LARGE A SHARE IN THE FEMININE PRODUCTS SECTOR SO P. AND G. WITHDREW ITS INITIAL NOTIFICATION AND SUBMITTED THE REVISED PROPOSAL THIS WEEK QUOTE THE COMMISSION FELT THAT THEY WEREN'T COMPLETELY CONFIDENT THAT THIS WOULDN'T RESTRICT COMPETITION SO WE HAVE MADE A SIGNIFICANT CHANGE IN THE PROPOSAL QUOTE SAID A P. AND G. SPOKESMAN IN BRUSSELS OTHER PRINCIPAL PLAYERS IN EUROPE'S FEMININE PROTECTION MARKET INCLUDE SCOTT PAPER COMPANY KIMBERLY CLARK CORPORATION AND JOHNSON AND JOHNSON ALTHOUGH SEVERAL MERGERS HAVE BEEN APPROVED WITH MODIFICATIONS DURING THE INITIAL STAGE OF AN E. U. INVESTIGATION THE WITHDRAWAL AND RESUBMISSION OF A REVISED PROPOSAL IS RARE THE COMMISSION NOW WILL EXAMINE THE REFORMULATED DEAL ANEW JANE M. MCANDREW THIRTY NINE YEARS OLD FORMERLY VICE PRESIDENT MERCHANDISING FOR THE CHILDREN'S DIVISION OF THIS CATALOG CONCERN WAS NAMED TO THE NEW POST OF VICE PRESIDENT INTERNATIONAL MERCHANDISING SHIGERU KITA WHO TURNED STEEL TRADER HANWA COMPANY INTO A HIGH FINANCE COMPANY ONCE WAS AN EMBLEM OF JAPAN'S FINANCIAL MIGHT YESTERDAY HE AND HIS COMPANY BECAME A SYMBOL OF JAPAN'S FINANCIAL PLIGHT VICE PRESIDENT TAKASHI IWAMI TOLD A NEWS CONFERENCE THAT HANWA WILL WRITE OFF ONE HUNDRED TWENTY BILLION YEN ONE POINT OH NINE BILLION DOLLARS IN PREVIOUSLY UNREALIZED LOSSES ON STOCK AND OTHER INVESTMENTS IN THE YEAR ENDING MARCH THIRTY FIRST HE ALSO SAID THAT MR. KITA WAS RESIGNING AS PRESIDENT MR. KITA WAS ABSENT FROM THE CONFERENCE HE WAS QUOTE FEELING UNDER THE WEATHER QUOTE ACCORDING TO MR. IWAMI HANWA HAD HOPED THE STOCK MARKET WOULD IMPROVE ENOUGH TO RESCUE ITS INVESTMENTS MR. IWAMI SAID THAT'S WHY THE COMPANY DIDN'T MENTION ITS LOOMING DISASTER WHEN IT DISCLOSED RESULTS FOR THE SIX MONTHS ENDED LAST SEPTEMBER BUT NOVEMBER'S MARKET PLUNGE MADE HANWA THROW IN THE TOWEL WE APOLOGIZE FOR THE LOSSES WE HAVE TO POST MR. IWAMI SAID HIS HEAD BOWED AS HE READ FROM A STATEMENT HANWA HAS BEEN THE SUBJECT OF RUMOR AND PRESS SPECULATION FOR YEARS AND BY THE START OF THIS YEAR THE COMPANY'S STOCK HAD FALLEN TO ABOUT ONE TENTH OF ITS NINETEEN NINETY ALL TIME HIGH OF FOUR THOUSAND FOUR HUNDRED SIXTY YEN A SHARE LATE WEDNESDAY THE TOKYO STOCK EXCHANGE ANNOUNCED IT WAS LAUNCHING AN INSIDER TRADING INVESTIGATION INTO HANWA'S RECENT SHARE PRICE MOVEMENTS THE STOCK HAS BEEN ODDLY BULLISH RISING SIXTY EIGHT PERCENT TO SEVEN HUNDRED SEVENTY SEVEN YEN A SHARE SINCE THE BEGINNING OF THE YEAR HANWA'S LONG WAIT BEFORE DEALING WITH ITS PROBLEMS IS COMMON IN JAPAN COMPANIES RESIST TAKING PAINFUL STEPS SUCH AS LAYING OFF WORKERS OR DECLARING SPECIAL LOSSES THEIR LENDERS OBLIGE LOANS AREN'T CONSIDERED DELINQUENT UNTIL SIX MONTHS WITHOUT A PAYMENT AND EVEN THEN A BANK MAY ACCEPT A TOKEN PAYMENT SO THE TROUBLED DEBT MAY RIDE ANOTHER SIX MONTHS THAT'S ONE REASON WHY WESTERN ANALYSTS IN TOKYO SAY THAT BY U. S. ACCOUNTING STANDARDS JAPAN'S BIG BANKS HAVE BAD LOANS OF PERHAPS THIRTY TRILLION YEN NOT THE FIFTEEN TRILLION YEN FIGURE BANKERS HERE CITE THOUGH HANWA ANNOUNCED A BIG WRITE OFF ITS FINANCIAL PROBLEMS MAY NOT BE OVER WE STILL HAVE ANOTHER ONE HUNDRED FIFTY BILLION YEN IN SPECIFIED STOCK FUNDS MR. IWAMI SAID AS OF SEPTEMBER THESE WERE SHOWING A FORTY PERCENT LOSS THOSE FUNDS PROBABLY WON'T BE LIQUIDATED FOR A FEW MORE YEARS THE DECISION TO EASE THE LOSSES OVER A LONG PERIOD OF TIME RATHER THAN TAKING THE ENTIRE HIT AT ONCE IS COMMON AMONG JAPANESE COMPANIES IT MAY COST MORE THAT WAY BUT THE LONGER IT TAKES THE THEORY RUNS THE MORE A COMPANY AND ITS LENDERS CAN AVOID THE SHOCK OF A SUDDEN DEFAULT OR A BANKRUPTCY FILING SHUNTING UNWANTED ASSETS ONTO AN AFFILIATE IS ANOTHER MOVE IN THE JAPAN INCORPORATED RESTRUCTURING PLAY BOOK HANWA PLANS TO RECORD A LOSS OF FORTY SEVEN POINT TWO BILLION YEN IN THE YEAR ENDING IN MARCH THE LOSS WOULD BE GREATER EXCEPT HANWA WILL EARN A PROFIT OF SIXTY FIVE BILLION YEN BY SELLING LAND TO A NEW SUBSIDIARY HANWA OFFICIALS ACKNOWLEDGED THAT THE SALE PRICE MAY BE MORE THAN THE PROPERTY'S ACTUAL VALUE ON JAPAN'S DEPRESSED REAL ESTATE MARKET MR. KITA IS GONE FROM HANWA'S PRESIDENCY BUT HE WILL KEEP A HAND IN RUNNING THE FIRM HIS FAMILY FOUNDED AS AN ADVISER HE ALSO WILL BE ADVISING HIS OLDER BROTHER JIRO KITA HANWA'S TEMPORARY PRESIDENT THE ELDER MR. KITA WILL EVENTUALLY BE REPLACED BY HIS SON SHUJI KITA A RECENTLY RETIRED OFFICIAL OF JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE DOW JONES AND COMPANY INCREASED ITS QUARTERLY DIVIDEND TO TWENTY ONE CENTS A SHARE FROM TWENTY CENTS PAYABLE MARCH FIRST TO SHARES OF RECORD FEBRUARY FIRST DOW JONES BASED IN NEW YORK PUBLISHES THE WALL STREET JOURNAL BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES TELERATE AND THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS CANADA'S MERCHANDISE TRADE SURPLUS NARROWED TO SEVEN HUNDRED THIRTY SIX MILLION CANADIAN DOLLARS FIVE HUNDRED SIXTY POINT TWO MILLION U. S. DOLLARS IN NOVEMBER FROM ONE POINT SIX TWO BILLION CANADIAN DOLLARS IN OCTOBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE DECLINE IN THE SURPLUS WAS ATTRIBUTED PARTLY TO A DROP IN AUTO EXPORTS TO THE U. S. IN NOVEMBER AS A RESULT OF TEMPORARY PLANT SHUTDOWNS THE AVERAGE BID WAS SEVEN POINT OH NINE PERCENT FOR A PRICE EQUIVALENT OF ONE HUNDRED ELEVEN POINT ONE FIVE SIX PROCEEDS OF THE ISSUE WILL BE APPLIED TOWARD THE REDEMPTION OF TWO POINT SIX BILLION CANADIAN DOLLARS OF GOVERNMENT BONDS MATURING FEBRUARY FIRST EVEN AS LOS ANGELES PICKS UP ITS PIECES CIVIL ENGINEERS ARE WORKING ON THE NEXT GENERATION OF QUAKEPROOFING FOR BUILDINGS AND BRIDGES IN A RELATIVELY NEW APPROACH TO EARTHQUAKE RESISTANCE ENGINEERING RESEARCHERS ARE DEVELOPING SYSTEMS THAT WOULD ALLOW A STRUCTURE TO REACT TO THE FORCE OF A QUAKE VERY MUCH AS A HUMAN WOULD THE STRUCTURE WOULD INSTANTLY YIELD TO THE FORCE BUT ONLY SO MUCH BEFORE MUSTERING STRENGTH TO PUSH BACK THESE QUOTE ACTIVE QUOTE TECHNOLOGIES ARE DIFFERENT FROM THE QUOTE PASSIVE QUOTE QUAKE RESISTANT SYSTEMS USED SINCE THE NINETEEN SEVENTY ONE EARTHQUAKE IN CALIFORNIA'S SAN FERNANDO VALLEY THE PASSIVE SYSTEMS INCLUDE SPECIALLY ENGINEERED CONNECTING JOINTS REINFORCED SUPPORTS AND ISOLATION MECHANISMS THAT ABSORB THE ENERGY OF A QUAKE'S VIBRATIONS PASSIVE SYSTEMS DO IN FACT MINIMIZE DAMAGE RESEARCHERS POINT TO THE NINETEEN EIGHTY NINE QUAKE IN SAN FRANCISCO AND TO MONDAY'S IN LOS ANGELES TO ILLUSTRATE HOW BUILDINGS AND BRIDGES BUILT OR RETROFITTED WITH THESE MECHANISMS HELD UP WELL COMPARED WITH THOSE THAT DIDN'T HAVE THEM STILL THE PASSIVE SYSTEMS ARE DESIGNED TO MAKE STRUCTURES SIMPLY TOLERATE THE BLOWS OF AN EARTHQUAKE WE ARE NO LONGER LOOKING AT BUILDINGS AS PASSIVE STRUCTURES THEY SHOULD HAVE SOME RESPONSIVENESS SAYS TSU SOONG PROFESSOR OF CIVIL ENGINEERING AT THE STATE UNIVERSITY OF NEW YORK IN BUFFALO WHICH IS THE HEADQUARTERS FOR THE NATIONAL CENTER FOR EARTHQUAKE RESEARCH MAJOR EARTHQUAKE ENGINEERING RESEARCH CENTERS AT SUNY BUFFALO ON THE EAST COAST AND CALIFORNIA INSTITUTE OF TECHNOLOGY IN PASADENA ON THE WEST ARE PURSUING SEVERAL APPROACHES TO MAKING STRUCTURES PLAY AN ACTIVE ROLE IN AN EARTHQUAKE ONE APPROACH INCLUDES THE USE OF AUTOMATIC HYDRAULIC SYSTEMS AND STEEL TENSION WIRES TO PRODUCE REPELLING FORCES IN ANOTHER A HEAVY WEIGHT STRATEGICALLY LOCATED ON A STRUCTURE IS MANIPULATED BY A COMPUTER CONTROLLED SYSTEM TO COUNTERBALANCE THE STRUCTURE AGAINST THE JOLTS OF AN EARTHQUAKE ENGINEERS ARE ALSO TESTING FLUIDS THAT CHANGE THEIR MECHANICAL PROPERTIES TO COUNTER THE QUAKE FORCES MOST OF THESE TECHNOLOGIES ARE STILL IN THE DEVELOPMENT STAGE IN THE U. S. BUT SOME HAVE BEEN INSTALLED IN SEVERAL BUILDINGS IN JAPAN WHICH HAS INSTALLED MORE EARTHQUAKE RESISTANT DEVICES THAN ANY OTHER COUNTRY ALTHOUGH THESE ACTIVE SYSTEMS ARE CONSIDERABLY MORE EXPENSIVE THAN PASSIVE TECHNOLOGIES THEY OFFER SIGNIFICANTLY BETTER PROTECTION AGAINST EARTHQUAKES MAKING THEM A SYSTEM OF CHOICE IN IMPORTANT BRIDGES NATURAL GAS PIPELINES AND OTHER STRATEGIC STRUCTURES RESEARCHERS SAY ROBERT HANSON PROFESSOR OF CIVIL ENGINEERING AT THE UNIVERSITY OF MICHIGAN SAYS THAT SOME OF THESE ACTIVE SYSTEMS CAN HELP STRUCTURES WITHSTAND THE MOST SEVERE OF EARTHQUAKES AS DESTRUCTIVE AS EIGHT POINT TWO ON THE RICHTER SCALE MONDAY'S EARTHQUAKE IN LOS ANGELES MEASURED SIX POINT SIX ON THE SCALE SUNY BUFFALO'S RESEARCH INCLUDES A TECHNOLOGY THAT USES HYDRAULIC SYSTEMS AND SPECIAL BRACES TO GENERATE FORCES TO OPPOSE THOSE IMPARTED BY A QUAKE STEEL BRACES AND PISTONS OR ACTUATORS ARE LOCATED INSIDE THE WALLS IN THE LOWER PART OF THE STRUCTURE PUMPS AND OTHER PARTS OF THE HYDRAULIC SYSTEMS ARE LOCATED IN THE BASE OF THE BUILDING SPECIAL SENSORS MOUNTED ON DIFFERENT FLOORS MEASURE VIBRATIONS CAUSED BY THE QUAKE AND RELAY THE INFORMATION TO A COMPUTER THE COMPUTER THEN CALCULATES THE NECESSARY OPPOSING FORCES AND TRIGGERS MOVEMENTS OF THE PISTONS TO APPLY THEM RESEARCHERS ARE USING THE SAME PRINCIPLE IN ANOTHER MECHANISM IN WHICH A MASSIVE WEIGHT ATOP THE STRUCTURE REPLACES THE HYDRAULIC SYSTEM AND PISTONS THE WEIGHT USUALLY ABOUT ONE PERCENT TO TWO PERCENT OF THE WEIGHT OF THE BUILDING MOVES IN RESPONSE TO COMPUTER COMMANDS GENERATING COUNTERFORCES ON THE STRUCTURE THE MOTION OF THE WEIGHT IS COMPLETELY AUTOMATIC PROFESSOR SOONG SAYS HE SAYS CHOICE OF THE WEIGHT SYSTEM OR THE HYDRAULIC ACTUATORS WILL DEPEND ON THE AVAILABLE SPACE AND NATURE OF THE STRUCTURE AT THE UNIVERSITY OF MICHIGAN PROFESSOR HANSON'S GROUP IS WORKING ON AN ACTIVE SYSTEM THAT DOESN'T DEPLOY MANY MOVING PARTS THE KEY TO THE TECHNOLOGY IS A FLUID A MIXTURE OF MINERAL OIL AND ALUMINUM OXIDE WHEN ELECTRICITY IS PASSED THROUGH THE FLUID ITS MECHANICAL PROPERTY CHANGES IT TURNS VISCOUS THE HIGHER THE VOLTAGE THE GREATER THE VISCOSITY THE CHANGE IS SIMILAR TO MILK TURNING INTO COTTAGE CHEESE PROFESSOR HANSON SAYS THE FLUID DEVICE IS PLACED BETWEEN THE STRUCTURE AND ITS BASE BY INCREASING ITS VISCOSITY WHEN CURRENT IS AUTOMATICALLY TRANSMITTED BY THE VIBRATIONS FROM AN EARTHQUAKE THE FLUID ALLOWS THE STRUCTURE TO QUOTE FIX QUOTE ITSELF TO THE BASE BY LOWERING ITS VISCOSITY THE FLUID ALLOWS THE STRUCTURE TO QUOTE FREE QUOTE ITSELF IF THE QUAKE WANTS TO PUT THE STRUCTURE IN MOTION YOU WANT TO FREE IT FROM THE BASE DOCTOR HANSON SAYS THEN WHEN THE BUILDING IS SETTLING BACK ON THE GROUND YOU WANT IT TO BE REFIXED TO THE BASE SO THAT IT TRANSMITS THE QUAKE ENERGY BACK INTO THE GROUND HE EXPLAINS SINCE THE STRUCTURE WOULDN'T TAKE ONE BIG BLOW SUDDENLY BUT INSTEAD WOULD SLOWLY YIELD DAMAGE CAN BE MINIMIZED AND EVEN ELIMINATED HE SAYS THE USE OF SUCH SMART MATERIAL IN BRIDGES IS THE SUBJECT OF RESEARCH AT THE UNIVERSITY OF NEVADA IN RENO SAIID SAIIDI PROFESSOR OF CIVIL ENGINEERING AT THE UNIVERSITY SAYS CERTAIN VISCOUS MATERIALS THAT CHANGE THEIR MECHANICAL PROPERTIES HAVE DEMONSTRATED THAT THEY CAN ABSORB A GREAT DEAL OF ENERGY HE SAYS SUCH MATERIALS CAN ALLOW BRIDGES TO SWAY WITHOUT COLLAPSING HOWEVER THE TECHNOLOGY IS STILL THREE TO FOUR YEARS AWAY FROM APPLICATION THE PROFESSOR SAYS THE EARTHQUAKE RESISTANT TECHNOLOGIES HAVE COME A LONG WAY IN THE LAST FORTY YEARS IN THE NINETEEN THIRTIES THE PREVAILING ENGINEERING PRONOUNCEMENT WAS THAT NOTHING CAN BE DONE ABOUT EARTHQUAKES SAYS THEODOR KRAUTHAMMER PROFESSOR OF CIVIL ENGINEERING AT PENNSYLVANIA STATE UNIVERSITY THAT VIEW CHANGED AFTER WORLD WAR TWO WHEN MONEY BECAME AVAILABLE FOR NEW RESEARCH AND WHEN SEISMOLOGY AND STRUCTURAL ENGINEERING BEGAN TO GET SOME ATTENTION BECAUSE QUOTE EARTHQUAKES KEPT COMING BACK QUOTE HE SAYS INDEED PRACTICALLY EVERY CIVIL ENGINEER RESEARCHING EARTHQUAKE PROOF DESIGNS IS IN LOS ANGELES THIS WEEK SURVEYING RUINS AS WELL AS STRUCTURES THAT HELD UP WELL IN THE QUAKE FOR CLUES TO BETTER ENGINEERING MEANWHILE NEW SEISMOLOGICAL STUDIES ARE UNDER WAY THAT WOULD HELP ENGINEERS PERFECT THE SYSTEMS THEY ARE DEVELOPING IN DECEMBER NINETEEN NINETY THREE CIVIL ENGINEERS AND COMPUTER SCIENTISTS AT CARNEGIE MELLON UNIVERSITY IN PITTSBURGH RECEIVED A TWO POINT ONE FIVE MILLION DOLLAR GRANT FROM THE NATIONAL SCIENCE FOUNDATION TO DEVELOP MODELS OF HOW THE GROUND MOVES DURING AN EARTHQUAKE THE GOAL SAYS JACOBO BIELAK A PROFESSOR OF CIVIL ENGINEERING AT THE UNIVERSITY IS TO USE THE MODELS TO DETERMINE HOW STRUCTURES CAN BE MADE SAFER IN AN EARTHQUAKE A NEW NINETEEN MILLION DOLLAR COMPUTER SYSTEM IS EXPECTED TO IMPROVE MEDICARE SERVICE AND EVENTUALLY SAVE THE FEDERAL PROGRAM MORE THAN TWO HUNDRED MILLION DOLLARS A YEAR IN ADMINISTRATIVE COSTS HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA ANNOUNCED THE MEDICARE TRANSACTION SYSTEM IS TO BEGIN OPERATING IN LATE NINETEEN NINETY SIX AND BE FULLY PHASED IN BY NINETEEN NINETY EIGHT WHEN FULLY PHASED IN DATA REGARDING ELIGIBILITY OTHER INSURANCE COVERAGE AND PRIOR CLAIMS WILL BE AVAILABLE TO HEALTH CARE PROVIDERS INSTANTANEOUSLY MS. SHALALA SAID MEDICARE IS THE FEDERAL HEALTH CARE INSURANCE PROGRAM FOR THE ELDERLY AND THE DISABLED AND SERVES THIRTY SIX MILLION BENEFICIARIES G. T. E. GOVERNMENT SYSTEMS CORPORATION OF CHANTILLY VIRGINIA A UNIT OF G. T. E. CORPORATION WAS AWARDED A SIX YEAR CONTRACT TO DESIGN AND DEVELOP THE NEW SYSTEM MS. SHALALA SAID AT A NEWS CONFERENCE UNDER THE NEW SYSTEM MEDICARE RECIPIENTS WOULD PRESENT A MEDICARE CARD FOR THEIR CARE THE CARD WOULD ALLOW A DOCTOR TO ELECTRONICALLY SUBMIT THE CLAIM TO MEDICARE AND BE PAID AUTOMATICALLY MS. SHALALA SAID MEDICARE BENEFICIARIES WILL RECEIVE A COPY OF THEIR BILL AND A CENTRAL NUMBER TO CALL FOR QUESTIONS IN ADDITION A PATIENT'S MEDIGAP INSURER WOULD BE BILLED INSTANTANEOUSLY AS WELL MEDIGAP POLICIES COVER MEDICAL COSTS NOT COVERED BY MEDICARE BRUCE VLADECK ADMINISTRATOR OF THE HEALTH CARE FINANCING ADMINISTRATION SAID THE NEW COMPUTER NETWORK ALSO MAY HELP FEDERAL OFFICIALS DETECT FRAUD AND ABUSE IN THE MEDICARE SYSTEM CURRENTLY SEVENTY NINE DIFFERENT CONTRACTORS ACROSS THE COUNTRY USE FOURTEEN DIFFERENT PROCESSING SYSTEMS AT SIXTY TWO DIFFERENT LOCATIONS TO PROCESS MEDICARE CLAIMS ONCE THE NEW SYSTEM IS IN FULL OPERATION THOSE CONTRACTORS WILL FOCUS ON OTHER ISSUES WITH MEDICARE RECIPIENTS SUCH AS CUSTOMER SERVICE MS. SHALALA SAID BRITISH FOOD AND BEVERAGE CONCERN CADBURY SCHWEPPES P. L. C. SAID IT'S BUYING BOUQUET D'OR OF FRANCE A SPECIALTY CHOCOLATES COMPANY CADBURY SAID IT WILL PAY EIGHTEEN MILLION POUNDS TWENTY SIX POINT NINE MILLION DOLLARS INCLUDING ACQUIRED DEBT SUBJECT TO ADJUSTMENT BASED ON THE COMPLETION BALANCE SHEET CADBURY WILL PAY IN CASH CADBURY SAID THAT BOUQUET D'OR'S SALES FOR THE YEAR TO APRIL THIRTIETH NINETEEN NINETY THREE WERE TWENTY NINE MILLION POUNDS CADBURY SAID THAT THE MANAGEMENT OF CHOCOLAT POULAIN ITS ESTABLISHED CONFECTIONARY BUSINESS IN FRANCE WILL MANAGE AND DEVELOP THE BOUQUET D'OR BUSINESS FREEPORT MCMORAN COPPER AND GOLD INCORPORATED SAID IT REDEEMED ONE HUNDRED EIGHTEEN POINT SIX MILLION DOLLARS IN LIQUID YIELD OPTION NOTES OUTSTANDING DUE TWO THOUSAND ONE THE MINING CONCERN SAID ONE HUNDRED EIGHTEEN POINT THREE MILLION DOLLARS OF THE NOTES WERE CONVERTED INTO SIX MILLION SIX HUNDRED NINETY FIVE THOUSAND FOUR HUNDRED FORTY FOUR SHARES OF ITS CLASS A COMMON STOCK AND THE BALANCE OF THE NOTES WERE REDEEMED FOR CASH THE COMPANY IS AN AFFILIATE OF FREEPORT MCMORAN INCORPORATED MAJOR CANADIAN WAGE SETTLEMENTS REACHED IN NOVEMBER PROVIDED INCREASES AVERAGING ZERO POINT ONE PERCENT ANNUALLY THE FEDERAL LABOR DEPARTMENT SAID THE FIGURE WAS THE SMALLEST RECORDED SINCE NINETEEN SEVENTY EIGHT WHEN THE LABOR DEPARTMENT BEGAN COLLECTING THE DATA MORE THAN NINETY PERCENT OF EMPLOYEES COVERED BY THE NOVEMBER SETTLEMENTS WERE SUBJECT TO WAGE FREEZES SETTLEMENTS IN OCTOBER PROVIDED AN AVERAGE ANNUAL INCREASE OF TWO POINT THREE PERCENT AND SEPTEMBER SETTLEMENTS PROVIDED FOR AN AVERAGE ZERO POINT TWO PERCENT INCREASE REPUBLIC NEW YORK CORPORATION NEW YORK RAISED ITS QUARTERLY DIVIDEND TWENTY TWO PERCENT TO THIRTY THREE CENTS A SHARE FROM TWENTY SEVEN CENTS A SHARE PAYABLE APRIL FIRST TO SHARES OF RECORD MARCH FIFTEENTH THE BANKING COMPANY SAID FOURTH QUARTER NET INCOME ROSE TWENTY PERCENT TO SEVENTY NINE POINT NINE MILLION DOLLARS OR ONE DOLLAR AND THIRTY EIGHT CENTS A SHARE FROM A YEAR EARLIER SIXTY SIX POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND FOURTEEN CENTS A SHARE THE PROVISION FOR LOAN LOSSES WAS FIFTEEN MILLION DOLLARS IN THE FOURTH QUARTER COMPARED WITH THIRTY FIVE MILLION DOLLARS A YEAR EARLIER TOTAL ASSETS AT YEAR'S END ROSE TO THIRTY NINE POINT FOUR NINE BILLION DOLLARS FROM A YEAR EARLIER THIRTY SEVEN POINT ONE FIVE BILLION DOLLARS REPUBLIC REAFFIRMED ITS INTENTION TO PURCHASE UP TO FIVE HUNDRED THOUSAND OF THE COMPANY'S COMMON SHARES TO LESSEN THE EFFECT ON PER SHARE EARNINGS OF CHARGES FOR EMPLOYEE BENEFIT PLANS IN THE GOTHIC CHAMBER OF THE BELFAST CITY COUNCIL MARIE MOORE INTRODUCES A MOTION STRESSING THE IMPORTANCE OF ADEQUATE HEALTH CARE ANYWHERE ELSE NO POLITICIAN WITH A LICK OF SENSE WOULD OPPOSE SUCH A PROPOSITION BUT WHAT GOVERNS OTHERS DOESN'T APPLY IN BELFAST ELECTED OFFICIALS ELSEWHERE MIGHT CALL ONE ANOTHER QUOTE COLLEAGUE QUOTE QUOTE SIR QUOTE OR QUOTE MADAM QUOTE BUT HERE THEY OFTEN REFER TO THEIR FELLOWS AS QUOTE SCUM QUOTE OTHER COUNCILS OVERSEE POLICE BUT HERE LEST FISTFIGHTS BREAK OUT POLICE OVERSEE THE COUNCIL AND AS TO THE MERITS OF LEGISLATION HERE THE GREATER ISSUE IS WHICH TRIBE PROPOSED IT CATHOLIC OR PROTESTANT INDEED AT THIS MOMENT AND ON THEIR SIDE OF THE CHAMBER PROTESTANTS ARE OUTRAGED THAT IS BECAUSE THE SPONSOR OF THE HEALTH CARE MOTION IS MRS. MOORE WHO BELONGS TO SINN FEIN POLITICAL PARTY OF THE OUTLAWED IRISH REPUBLICAN ARMY NOTING THAT I. R. A. VIOLENCE TAXES CITY HEALTH CARE FACILITIES PROTESTANT COUNCILOR SAMMY WILSON RISES TO CRY FOUL JABBING A FINGER AT THE CATHOLIC SIDE HE SAYS YOU CAN PLEAD ALL YOU WANT BUT YOU WON'T FIND READY EARS OR WEAK MINDS SUPPORTING YOUR HYPOCRISY CATHOLICS WHO ARE OUTNUMBERED TWENTY SIX TO NINETEEN BECAUSE OF NORTHERN IRELAND'S PROTESTANT MAJORITY SNEER SCENES OF THIS KIND DON'T BODE WELL FOR THE CURRENT EFFORT TO BRING PEACE TO NORTHERN IRELAND IN A CITY WHERE TERROR GANGS ARE MURDERING PEOPLE ON A DAILY BASIS AN EXAMPLE SHOULD BE SHOWN BY THE PEOPLE ON THE CITY COUNCIL SAYS SEAMUS LYNCH A MEMBER UNTIL LAST MAY INSTEAD HE SAYS IT'S MEDIEVAL POLITICS WITH EVEN CHILDREN IN THE STREETS TELLING STORIES ABOUT CITY COUNCILORS KICKING PUNCHING AND SHOVING EACH OTHER CERTAIN MOMENTS IN COUNCIL HISTORY ARE NOTORIOUS A PROTESTANT COUNCILOR ONCE SPRAYED INSECTICIDE AT CATHOLICS A CATHOLIC COUNCILOR ASSAULTED A POLICEMAN WHO WAS TRYING TO BREAK UP A FIGHT A PROTESTANT COUNCILOR BLEW A TRUMPET TO KEEP A CATHOLIC FROM BEING HEARD SOME CATHOLIC VISITORS HURLED PROTEST LEAFLETS AND SHOUTED OBSCENITIES FROM THE PUBLIC GALLERY PRECIPITATING A MELEE BETWEEN THEMSELVES AND PROTESTANT COUNCILORS MR. LYNCH SOLE REPRESENTATIVE OF THE NONSECTARIAN WORKERS PARTY UNTIL HE LOST LAST MAY'S ELECTION SAYS HIS MOST VIVID IMAGE AFTER TWELVE YEARS ON THE COUNCIL IS THAT OF A SINN FEIN COUNCILOR STANDING AMID A MOB OF TWENTY BRAWLING COUNCILORS A CHAIR RAISED OVER HIS HEAD PREPARED TO COME DOWN ON SOMEONE SUCH DUST UPS ARISE PARTLY FROM A SHORTAGE OF LEGITIMATE BUSINESS TO CONDUCT THE DEBATE OVER THE HEALTH CARE MOTION FOR INSTANCE IS UTTERLY IRRELEVANT BECAUSE THE BELFAST CITY COUNCIL HAS NO SAY ABOUT HEALTH CARE JUST AS IT HAS NO SAY ABOUT OTHER ISSUES INCLUDING HOUSING LAW ENFORCEMENT AND EDUCATION THAT TYPICALLY ARE THE PROVINCE OF LOCAL GOVERNMENTS IN THE INTEREST OF KEEPING PEACE BRITAIN IN NINETEEN SEVENTY TWO BEGAN DICTATING VIRTUALLY ALL ASPECTS OF LOCAL RULE FROM LONDON WHAT REMAINS OF LOCAL GOVERNMENT HERE ISN'T A DEMOCRACY SAY CRITICS IN BOTH CAMPS WE CAN'T EVEN FILL POTHOLES IN OUR STREETS OR TRIM WEEDS FROM FOOTPATHS GRUMBLES PROTESTANT COUNCILOR JIM KIRKPATRICK CALLING IT AN INSULT TO THE INTELLIGENCE OF CATHOLICS AND PROTESTANTS ALIKE TO LIMIT THE COUNCIL TO REMOVAL OF TRASH AND BURIAL OF THE DEAD BY ALL ACCOUNTS THE COUNCIL DOES A FINE JOB OF TENDING WHAT RESPONSIBILITIES IT HAS CEMETERIES TRASH AND PARKS BUT THESE DUTIES HARDLY KEEP THE COUNCIL BUSY IT MEETS JUST ONCE A MONTH AND EVEN THEN ITS MEETINGS SOMETIMES ADJOURN WITHIN FIVE MINUTES FOR LACK OF BUSINESS TO CONDUCT THAT IS AN ESPECIALLY GOOD QUESTION CONSIDERING THE PAY ABOUT ONE HUNDRED DOLLARS A MONTH AND THE RISKS CATHOLIC TERRORISTS HAVE SHOT AND WOUNDED SUCH PROTESTANT COUNCILORS AS BILLY DICKSON AND SAMMY MILLAR WHILE PROTESTANT TERRORISTS HAVE ATTACKED THE HOMES OF SEVERAL CATHOLIC COUNCILORS IN ONE CASE KILLING A VISITOR AND IN ANOTHER KILLING A COUNCILOR'S TWENTY ONE YEAR OLD SON DESPITE ALL THAT BELFAST CITY COUNCIL RACES ARE HOTLY CONTESTED VOTER TURNOUT SLIGHTLY EXCEEDS THE U. K. AVERAGE AND THERE ARE HARD FEELINGS WHENEVER A SEAT SHIFTS FROM ONE PARTY TO ANOTHER WHEN SINN FEIN WON A LONG TIME OPPOSITION SEAT IN NINETEEN NINETY ONE FOR INSTANCE PROTESTANT COUNCILOR SAMMY WILSON CALLED THE WINNING VOTERS QUOTE FIVE THOUSAND SUBHUMAN ANIMALS QUOTE FOR EXTREMISTS IN BOTH CAMPS A SEAT ON THE COUNCIL REPRESENTS A PLATFORM NOT FOR RUNNING THE CITY BUT FOR SPEECHIFYING ON NORTHERN IRELAND POLITICS A LOT OF WHAT THEY DO IS FOR THE BENEFIT OF US HACKS SAYS JIM MCDOWELL AUTHOR OF A LONG RUNNING CITY HALL COLUMN CALLED THE DOME OF DELIGHT SOME PROTESTANT COUNCILORS TAKE EVERY OPPORTUNITY TO CONDEMN THEIR SINN FEIN COUNTERPARTS FOR CONDONING I. R. A. VIOLENCE ONCE PROTESTANT COUNCILORS EVEN PASSED A LAW LATER OVERTURNED BY THE COURTS PROHIBITING SINN FEIN COUNCIL MEMBERS FROM ATTENDING CIVIC FUNCTIONS AT CITY HALL PROTESTANT COUNCILORS ALSO TAKE EVERY OPPORTUNITY TO BASH THE CATHOLIC DREAM OF A UNITED IRELAND THEY PASSED ONE LAW BANNING IRISH PRESIDENT MARY ROBINSON FROM SETTING FOOT IN BELFAST CITY HALL AND ANOTHER BANNING USE OF THE IRISH LANGUAGE IN CITY HALL WHEN CATHOLIC MEMBERS SUBSEQUENTLY PROPOSED LIFTING THE LANGUAGE BAN PROTESTANT MEMBERS NOT ONLY REAFFIRMED IT BUT PASSED A MOTION EXPRESSING AN OFFICIAL INTEREST IN CHINESE HINDI AND THE VARIOUS LANGUAGES OF THE INDIAN SUBCONTINENT FOR THEIR PART SINN FEIN COUNCILORS ROUTINELY DECLINE TO VOTE FOR MOTIONS EXPRESSING SYMPATHY FOR INNOCENT VICTIMS OF I. R. A. VIOLENCE THEY CHALLENGE NEARLY EVERY COUNCIL EXPENDITURE AS EXTRAVAGANT AND PROFESS TO SEE BIAS AGAINST CATHOLICS IN VIRTUALLY EVERY ACTION THE COUNCIL TAKES STILL SOME SEE REASON FOR OPTIMISM IN LAST MAY'S ELECTION SEVERAL OF THE MOST RADICAL PROTESTANTS GOT REPLACED BY MORE MODERATE NEWCOMERS AND INCREASINGLY MEMBERS OF THE CATHOLIC SOCIAL DEMOCRATIC LABOR PARTY ARE LOUDLY CONDEMNING SINN FEIN CATHOLICS FOR REFUSING TO EMBRACE THE CAMPAIGN FOR PEACE FOLLOWING THIS MONTH'S MEETING ABOUT TWO DOZEN COUNCILORS CHEERFULLY CONGREGATED IN THE MAYOR'S OFFICE FOR THE TRADITIONAL POST BUSINESS ROUND OF DRINKS WE'RE ALL GETTING ALONG BETTER SAID PROTESTANT COUNCILOR SANDY BLAIR WHEN ASKED HOW MANY GATHERED HERE ARE CATHOLIC HOWEVER HE HAD TO STUDY THE CROWD THERE'S ONE HE SAID POINTING HIS PINT OF ALE THE SUPREME COURT MADE IT HARDER FOR MINING COMPANIES TO EXCLUDE UNION REPRESENTATIVES FROM SAFETY INSPECTIONS AT NONUNION MINES THE UNANIMOUS DECISION WAS A PROCEDURAL VICTORY FOR THE UNITED MINE WORKERS AND THE CLINTON ADMINISTRATION WHICH SUPPORTED THE UNION POSITION BEFORE THE SUPREME COURT THE CASE AROSE WHEN A WYOMING MINING COMPANY WHOSE FIVE HUNDRED EMPLOYEES WEREN'T UNION MEMBERS OBJECTED TO THE PARTICIPATION IN NINETEEN NINETY OF TWO U. M. W. REPRESENTATIVES IN FEDERALLY MANDATED SAFETY INSPECTIONS THE FEDERAL MINE SAFETY LAW ALLOWS WORKERS TO BE REPRESENTED DURING GOVERNMENT INSPECTIONS AND THE EMPLOYEES IN THIS INSTANCE PROPOSED THE U. M. W. OFFICIALS THE FIRM THUNDER BASIN COAL COMPANY COUNTERED THAT IT HAD A RIGHT UNDER U. S. LABOR LAW TO EXCLUDE UNION ORGANIZERS FROM ITS PROPERTY GIVING THE UNION OFFICIALS ACCESS TO WORKERS AND RECORDS WOULD PROVIDE THE U. M. W. WITH AN UNFAIR ADVANTAGE IN FUTURE ORGANIZING EFFORTS THE COMPANY COMPLAINED THUNDER BASIN A UNIT OF ATLANTIC RICHFIELD COMPANY SAID THAT FEDERAL REGULATORS WHO BACKED THE WORKERS TRIED TO DENY THE COMPANY ITS LEGAL RIGHTS BY THREATENING TO IMPOSE FINES THE COMPANY FILED A LAWSUIT IN FEDERAL COURT AND PERSUADED A JUDGE TO BLOCK THE UNION INVOLVEMENT BUT THE FEDERAL APPEALS COURT IN DENVER REVERSED THAT RULING SAYING THE MINE SAFETY ACT PRECLUDED THUNDER BASIN FROM GOING TO COURT AT SUCH AN EARLY STAGE IN THE DISPUTE THE SUPREME COURT AFFIRMED THAT DECISION THUNDER BASIN SHOULD HAVE FIRST FILED A PROTEST WITH AN ADMINISTRATIVE BODY THE FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION THE HIGH COURT SAID IF THUNDER BASIN LOST BEFORE THE COMMISSION IT COULD THEN TAKE THE CASE DIRECTLY TO A FEDERAL APPEALS COURT AMENDMENTS ENACTED IN NINETEEN SEVENTY SEVEN TO THE MINE SAFETY STATUTE WERE INTENDED TO STREAMLINE ENFORCEMENT AND PREVENT COMPANIES FROM USING LITIGATION TO DELAY NEEDED IMPROVEMENTS THE HIGH COURT DETERMINED JUSTICE HARRY BLACKMUN WROTE THE MAIN OPINION JUSTICES ANTONIN SCALIA AND CLARENCE THOMAS AGREED WITH THE RESULT BUT NOT ALL OF THE MAIN OPINION'S REASONING THE HIGH COURT UPHELD THE CONGRESSIONALLY ESTABLISHED METHOD FOR SELECTING MILITARY JUDGES WHICH TWO CONVICTED MARINES HAD CHALLENGED AS UNCONSTITUTIONAL THE JUSTICES UNANIMOUSLY CONCLUDED THAT EXISTING SELECTION PRACTICES COMPLY WITH CONSTITUTIONAL REQUIREMENTS FOR FEDERAL APPOINTMENTS AND DON'T VIOLATE THE QUOTE DUE PROCESS QUOTE RIGHTS OF SERVICE MEMBERS AMONG THE CONTENTIONS THE SUPREME COURT REJECTED WAS THE CLAIM THAT BECAUSE MILITARY JUDGES AREN'T APPOINTED FOR LIFE OR FOR FIXED TERMS THEY LACK THE INDEPENDENCE NEEDED TO ENSURE IMPARTIALITY THE COURT STRESSED THAT TEMPORARY APPOINTMENTS ARE PART OF THE MILITARY JUSTICE TRADITION A FACT THAT IN ITSELF SUGGESTS THE ABSENCE OF A FUNDAMENTAL FAIRNESS PROBLEM IN ANY CASE CHIEF JUSTICE WILLIAM REHNQUIST WROTE ON BEHALF OF THE COURT THE JUDICIARY GENERALLY SHOULDN'T SECOND GUESS CONGRESSIONAL DECISIONS ON HOW TO ORGANIZE THE MILITARY ONE OF THE MORE STRIKING ASPECTS OF THE DECISION WAS A BRIEF CONCURRING OPINION IN WHICH JUSTICE RUTH BADER GINSBURG SAID THAT THE CARE THE COURT HAS TAKEN TO ANALYZE THE TWO MARINES' CLAIMS DEMONSTRATES ONCE AGAIN THAT MEN AND WOMEN IN THE ARMED FORCES DO NOT LEAVE CONSTITUTIONAL SAFEGUARDS AND JUDICIAL PROTECTION BEHIND WHEN THEY ENTER MILITARY SERVICE SEEMINGLY AT ODDS WITH THE THRUST OF THE REHNQUIST OPINION JUSTICE GINSBURG'S COMMENT APPEARED TO ENCOURAGE CHALLENGES TO OTHER ALLEGEDLY UNCONSTITUTIONAL CONDITIONS OF MILITARY LIFE SUCH AS THE BAN ON GAYS THAT IS CURRENTLY IN LITIGATION IN THE LOWER FEDERAL COURTS WEISS VERSUS U. S. MITCHELL ENERGY AND DEVELOPMENT CORPORATION SAID IT WILL REDEEM ITS TWO HUNDRED MILLION DOLLARS AGGREGATE PRINCIPAL AMOUNT OF ELEVEN POINT TWO FIVE PERCENT SENIOR NOTES DUE NINETEEN NINETY NINE WITH THE PROCEEDS FROM ITS OFFERING OF TWO HUNDRED FIFTY MILLION DOLLARS OF SIX POINT SEVEN FIVE PERCENT SENIOR NOTES MITCHELL SAID IT WILL CALL FOR REDEMPTION OF THE ELEVEN POINT TWO FIVE PERCENT NOTES IN LATE FEBRUARY AFTER THE OFFERING OF THE SIX POINT SEVEN FIVE PERCENT NOTES SCHEDULED TO CLOSE JANUARY TWENTY FIFTH THE COMPANY SAID IT WILL REDEEM THE ELEVEN POINT TWO FIVE PERCENT NOTES AT THE AGGREGATE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST AND A SIX POINT FOUR MILLION DOLLAR PRE PAYMENT PREMIUM MITCHELL SAID IT WILL REALIZE NINE MILLION DOLLARS IN ANNUAL INTEREST SAVINGS AS A RESULT OF THE SENIOR NOTE REFINANCING AND IT ALSO WILL USE PROCEEDS FROM THE OFFERING TO PAY DOWN BANK DEBT C. S. FIRST BOSTON AND GOLDMAN SACHS AND COMPANY ARE MANAGING THE OFFERING THE WALL STREET JOURNAL SLASH N. B. C. NEWS POLL WAS BASED ON NATIONWIDE TELEPHONE INTERVIEWS OF ONE THOUSAND NINE ADULTS CONDUCTED SATURDAY THROUGH TUESDAY BY THE POLLING ORGANIZATIONS OF PETER HART AND ROBERT TEETER THE SAMPLE WAS DRAWN FROM TWO HUNDRED SIXTY THREE RANDOMLY SELECTED GEOGRAPHIC POINTS IN THE CONTINENTAL U. S. EACH REGION WAS REPRESENTED IN PROPORTION TO ITS POPULATION HOUSEHOLDS WERE SELECTED BY A METHOD THAT GAVE ALL TELEPHONE NUMBERS LISTED AND UNLISTED AN EQUAL CHANCE OF BEING INCLUDED ONE ADULT EIGHTEEN YEARS OR OLDER WAS SELECTED FROM EACH HOUSEHOLD BY A PROCEDURE TO PROVIDE THE CORRECT NUMBER OF MALE AND FEMALE RESPONDENTS THE RESULTS OF THE SURVEY WERE MINIMALLY WEIGHTED BY AGE SEX AND OWING TO THE EFFECTS OF THE LOS ANGELES EARTHQUAKE BY REGION TO ASSURE THAT THE POLL ACCURATELY REFLECTS REGISTERED VOTERS NATIONWIDE CHANCES ARE NINETEEN OF TWENTY THAT IF ALL ADULTS WITH TELEPHONES IN THE U. S. HAD BEEN SURVEYED THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN THREE POINT ONE PERCENTAGE POINTS IN EITHER DIRECTION A LIMITED NUMBER OF QUESTIONS WERE ASKED OF HALF THE SAMPLE FOR THESE THE MARGIN OF ERROR IS FOUR POINT FIVE PERCENTAGE POINTS THE MARGIN FOR ANY SUBGROUP WOULD DEPEND ON THE SIZE OF THAT GROUP THE EUROPEAN UNION'S TOP COMPETITION OFFICIAL IS SEEKING AN EXTRAORDINARY ORDER TO BAR THE INJECTION OF ADDITIONAL FRENCH STATE AID INTO THE AILING STATE OWNED COMPUTER COMPANY COMPANY DES MACHINES BULL OFFICIALS SAID THE E. U. COMPETITION COMMISSIONER KAREL VAN MIERT IS URGING THE FULL E. U. COMMISSION TO EXTEND AN EARLIER PROBE INTO TWO POINT FIVE BILLION FRANCS FOUR HUNDRED TWENTY ONE POINT FIVE MILLION DOLLARS OF STATE AID PROVIDED TO BULL LAST FEBRUARY TO COVER AN ADDITIONAL EIGHT POINT SIX BILLION FRANCS RECENTLY ANNOUNCED BY THE FRENCH GOVERNMENT PEOPLE CLOSE TO THE E. U. SAID ABOUT THREE FOURTHS OF THE EIGHT POINT SIX BILLION FRANCS ALREADY HAS BEEN DISBURSED BUT MR. VAN MIERT SEEKS THE ORDER TO PREVENT THE REMAINDER FROM BEING TRANSFERRED PENDING COMPLETION OF THE PROBE THE NEW STEPS ON BULL REFLECT GROWING IMPATIENCE IN BRUSSELS OVER THE FAILURE OF THE FRENCH GOVERNMENT AND STATE OWNED FRENCH TELECOM WHICH OWN NINETY PERCENT OF BULL TO SUBMIT A RESTRUCTURING PLAN TO THE COMMISSION E. U. OFFICIALS INSIST THE STATE AID TO BULL IS ILLEGAL UNLESS THE FUNDS ARE USED TO MAKE THE COMPANY VIABLE THROUGH A RESTRUCTURING BLUEPRINT BULL SHOWED A LOSS OF NEARLY FIVE BILLION FRANCS IN NINETEEN NINETY TWO AND HAD A FURTHER DEFICIT OF TWO BILLION FRANCS IN THE FIRST HALF OF NINETEEN NINETY THREE TIME INCORPORATED THE PUBLISHING DIVISION OF TIME WARNER INCORPORATED NAMED NEW PUBLISHERS AT TWO OF ITS MAGAZINES FORTUNE AND MONEY AT FORTUNE STUART ARNOLD FORTY TWO YEARS OLD WAS PROMOTED TO PUBLISHER FROM HIS PREVIOUS POST OF ADVERTISING SALES DIRECTOR MR. ARNOLD SUCCEEDS JAMES B. HAYES FIFTY FIVE YEARS OLD WHO IS RETIRING AFTER THIRTY FIVE YEARS AT TIME INCORPORATED MR. HAYES WHO HAS BEEN ACTIVE IN EDUCATION ISSUES WILL BE ANNOUNCING A NEW EDUCATION INITIATIVE NEXT WEEK THAT HE WILL HEAD THE COMPANY SAID THE BUSINESS MAGAZINE IS CONSIDERED QUITE HEALTHY HAVING OUTPERFORMED COMPETING MAGAZINES IN ADVERTISING GAINS LAST YEAR IN A DIFFICULT ADVERTISING CLIMATE ACCORDING TO PUBLISHERS INFORMATION BUREAU FORTUNE SOLD TWO THOUSAND SEVEN HUNDRED NINETY FOUR AD PAGES IN NINETEEN NINETY THREE A HEALTHY NINE POINT FIVE PERCENT GAIN FROM THE PREVIOUS YEAR THE COMPANY'S RATE BASE THE NUMBER OF SUBSCRIBERS GUARANTEED TO ADVERTISERS ROSE ELEVEN PERCENT IN NINETEEN NINETY THREE TO EIGHT HUNDRED SEVENTY THOUSAND IN FACT THE PUBLICATION CONSISTENTLY DELIVERS MORE THAN NINE HUNDRED THOUSAND SAYS A SPOKESWOMAN THE NEW PUBLISHER OF MONEY IS ADVERTISING SALES DIRECTOR BETSY MARTIN FIFTY MS. MARTIN SUCCEEDS WILLIAM MYERS FIFTY NINE WHO IS RETIRING AFTER THIRTY TWO YEARS AT TIME INCORPORATED MONEY ISN'T FLOURISHING TO THE SAME DEGREE AS FORTUNE ALTHOUGH CIRCULATION ROSE MODESTLY LAST YEAR MONEY'S AD PAGES DECLINED SEVEN POINT FIVE PERCENT IN NINETEEN NINETY THREE TO ONE THOUSAND TWO HUNDRED TWENTY SEVEN PAGES REPORTS PUBLISHERS INFORMATION BUREAU QUOTE MONEY IS STILL THE LEADER OF THE PERSONAL FINANCE CATEGORY WITH NEARLY TWO MILLION SUBSCRIBERS QUOTE SAYS MAGAZINE CONSULTANT MARTIN WALKER QUOTE BUT THE CATEGORY HAS BECOME MUCH MORE COMPETITIVE IN RECENT YEARS AT THE MIDDLE INCOME END OF THE MARKET KIPLINGER'S PERSONAL FINANCE WAS REPOSITIONED ABOUT A YEAR AND A HALF AGO ITS AD PAGES ROSE NEARLY ELEVEN PERCENT IN NINETEEN NINETY THREE AND AT THE UPPER INCOME END SMARTMONEY AND WORTH ARE ATTRACTING READERS A SPOKESWOMAN FOR MONEY SAID THE FACT THAT THE TWO PROMOTIONS OCCURRED SIMULTANEOUSLY IS COINCIDENTAL AND HAS NOTHING TO DO WITH THE RESTRUCTURING ANNOUNCED LAST FALL OF TIME WARNER'S PUBLISHING GROUP MONEY MAGAZINE WHICH IS PART OF TIME WARNER INCORPORATED'S PUBLISHING UNIT RECORDED A THREE POINT THREE PERCENT DROP IN ITS ADVERTISING PAGES IN NINETEEN NINETY THREE AN ARTICLE THURSDAY INCORRECTLY STATED THAT MONEY'S AD PAGES DECLINED SEVEN POINT FIVE PERCENT LAST YEAR BASED ON FIGURES FROM PUBLISHERS INFORMATION BUREAU THAT DIDN'T INCLUDE MONEY'S EXTRA YEAR END EDITION THE U. S. WITHDREW ITS THREAT OF TRADE SANCTIONS AFTER JAPAN'S CABINET ENDORSED A BROAD PLAN TO OPEN THE NATION'S PUBLIC WORKS MARKET TO FOREIGN CONSTRUCTION COMPANIES U. S. TRADE REPRESENTATIVE MICKEY KANTOR PRAISED THE JAPANESE PLAN AS QUOTE AN HISTORIC STEP FORWARD QUOTE BECAUSE IT MAKES THE QUOTE BIDDING PROCESS MORE TRANSPARENT AND OBJECTIVE QUOTE THE U. S. ACTION HAD BEEN EXPECTED THE TWO SIDES HAVE BEEN WORKING TO DEVISE A MUTUALLY AGREEABLE SYSTEM THE U. S. ALSO REALIZES THAT A SANCTIONS BATTLE WOULD WRECK OTHER TRADE NEGOTIATIONS WITH JAPAN THAT ARE MOVING TOWARD THEIR CONCLUSION IN THOSE FRAMEWORK TALKS THE U. S. IS PRESSING JAPAN TO ACCEPT TARGETS FOR FOREIGN IMPORTS TREASURY SECRETARY LLOYD BENSTEN WHO IS TRAVELING IN ASIA PLANS TO MEET WITH JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA AND FINANCE MINISTER HIROHISA FUJII SUNDAY TO STRESS THE IMPORTANCE THE U. S. PLACES ON THOSE TALKS BOTH SIDES ARE LOOKING FOR AN AGREEMENT BY FEBRUARY ELEVENTH WHEN MR. HOSOKAWA COMES TO WASHINGTON TO MEET PRESIDENT CLINTON IN THE CONSTRUCTION NEGOTIATIONS THE U. S. SETTLED FOR MUCH LESS THAN IT HAS BEEN SEEKING IN THE BROADER FRAMEWORK TALKS THE TWO SIDES WILL TRACK HOW WELL FOREIGN CONSTRUCTION COMPANIES DO BUT THE JAPANESE WON'T HAVE TO MEET ANY NUMERICAL GOAL PROCEDURAL CHANGES IN THE PUBLIC WORKS AREA IS A BETTER WAY TO PROCEED MR. KANTOR SAID C. B. S. INCORPORATED AS EXPECTED WON THE U. S. TELEVISION RIGHTS TO THE NINETEEN NINETY EIGHT WINTER OLYMPICS IN NAGANO JAPAN FOR THREE HUNDRED SEVENTY FIVE MILLION DOLLARS THE RIGHTS FEE A WINTER OLYMPICS RECORD IS TWENTY SEVEN PERCENT MORE THAN THE TWO HUNDRED NINETY FIVE MILLION DOLLARS THAT C. B. S. PAID FOR THE GAMES THIS YEAR IN LILLEHAMMER NORWAY AT A NEW YORK NEWS CONFERENCE C. B. S. CHAIRMAN LAURENCE TISCH SAID THE PRICE REACHED IN NEGOTIATION WITH THE INTERNATIONAL OLYMPICS COMMITTEE QUOTE IS A NUMBER WE'RE VERY HAPPY WITH QUOTE HE SAID C. B. S. WILL JUST ABOUT BREAK EVEN ALTHOUGH THERE WERE NO OTHER BIDDERS FOR THE GAMES MR. TISCH DISMISSED SUGGESTIONS THAT C. B. S. HAD OVERPAID WE'RE BIG BOYS HE SAID WE KNOW WHEN TO FOLD OUR CARDS AND LEAVE THE GAME Q. V. C. NETWORK INCORPORATED EXTENDED ITS TEN POINT ONE BILLION DOLLAR TAKEOVER OFFER FOR PARAMOUNT COMMUNICATIONS INCORPORATED FOR TEN DAYS UNTIL JANUARY THIRTY FIRST MATCHING THE EXPIRATION OF THE LATEST OFFER BY VIACOM INCORPORATED Q. V. C. ABIDED BY THE BIDDING RULES SET BY NEW YORK BASED PARAMOUNT IN EXTENDING THE OFFER EVEN THOUGH PEOPLE CLOSE TO Q. V. C. HAD THREATENED THAT THE HOME SHOPPING COMPANY MIGHT CONTEST THE BIDDING PROCEDURES Q. V. C. HAS OBJECTED TO EXTENDING ITS OFFER BECAUSE VIACOM WITH ITS LATEST OFFER HASN'T TOPPED THE VALUE OF Q. V. C.'S BID ALTHOUGH VIACOM'S OFFER VALUED AT ABOUT NINE POINT EIGHT BILLION DOLLARS IS LESS THAN Q. V. C.'S BID ON A MARKET VALUE BASIS MOST TRADERS SAID THEY PREFER THE VIACOM BID BECAUSE IT PROVIDES PROTECTION AGAINST A DOWNTURN IN VIACOM'S STOCK PRICE VIACOM IS BASED IN DEDHAM MASSACHUSETTS PARAMOUNT'S BOARD IS SET TO MEET TOMORROW AFTERNOON TO REVIEW THE LATEST VIACOM BID AND DECIDE WHETHER TO CONTINUE ENDORSING Q. V. C.'S OFFER Q. V. C. SAID HOLDERS OF EIGHTEEN POINT SEVEN MILLION OR SIXTEEN PERCENT OF PARAMOUNT'S SHARES OUTSTANDING HAVE TENDERED THEIR SHARES TO Q. V. C. WHAT DOES A SOUTHERN CALIFORNIA INSURANCE COMPANY DO WHEN AN EARTHQUAKE CRIPPLES ITS HOME OFFICE BUT DOESN'T STOP NEARBY POLICYHOLDERS FROM KNOCKING ON THE DOOR FOR MONEY FOR TWENTIETH CENTURY INDUSTRIES THIS WEEK THE ANSWER WAS TO CAPITALIZE ON PERFECT WEATHER IT SET UP TENTS AND TABLES IN THE PARKING LOT ITS AD HOC CLAIMS OFFICE WAS ASSEMBLED HOURS AFTER MONDAY MORNING'S QUAKE TO HELP THE NEEDY CUSTOMERS WHO BEGAN SHOWING UP IN CARS AND ON FOOT THE TEMBLOR CENTERED JUST EIGHT MILES NORTHEAST OF THE INSURANCE HOLDING COMPANY'S HIGH RISE HEADQUARTERS IN A SUBURBAN OFFICE PARK HERE KNOCKED OUT ITS COMPUTER SYSTEMS ALONG WITH ALL POWER AND WATER WHILE THERE WASN'T ANY MAJOR STRUCTURAL DAMAGE TO THE OFFICE TOWER SMASHED WINDOW GLASS AND TOPPLED FILE CABINETS LITTERED THE BUILDING'S INTERIOR QUOTE EVEN THOUGH OUR PHONES WERE REROUTED TO REMOTE LOCATIONS SOME PEOPLE COULDN'T ACCESS THEM SO THEY TOOK THE ROUTE OF WALKING IN THEIR CLAIMS QUOTE SAYS RICK DINON SENIOR VICE PRESIDENT FAX MACHINES AND MANUAL FILES WERE BROUGHT DOWN TO AID CLAIMS PROCESSING WE BORROWED A TENT FROM ONE OF OUR EMPLOYEES TO KEEP PEOPLE OUT OF THE SUN SOME POLICYHOLDERS LUCKY ENOUGH TO HAVE EARTHQUAKE INSURANCE BUT UNLUCKY ENOUGH TO HAVE SUSTAINED THE CATASTROPHIC DAMAGE NEEDED TO TRIGGER COVERAGE ARE WALKING AWAY FROM THE PARKING LOT WITH CHECKS IN HAND MR. DINON SAID SOME CUSTOMERS HAVE BROUGHT WATER AND REFRESHMENTS TO OUR EMPLOYEES HE ADDED SO FAR HUNDREDS OF TWENTIETH CENTURY CUSTOMERS WHO NORMALLY TAKE UP MOST CLAIMS BUSINESS WITH THE INSURER BY TELEPHONE HAVE TAKEN ADVANTAGE OF THE SPECIAL PARKING LOT CLAIMS OFFICE MR. DINON WOULDN'T ESTIMATE THE TOTAL NUMBER OF CLAIMS HIS COMPANY IS EXPECTING FROM THE EARTHQUAKE OR THEIR DOLLAR VALUE EXCEPT IN THE BROADEST SENSE IT IS LIKELY THE LOSS WILL BE OVER TEN MILLION DOLLARS BUT WITHIN OUR REINSURANCE LIMIT OF ONE HUNDRED MILLION DOLLARS HE SAID UNDER ITS REINSURANCE ARRANGEMENTS TWENTIETH CENTURY WILL RECOVER SEVENTY FIVE PERCENT OF PAYMENTS BETWEEN TEN MILLION DOLLARS AND ONE HUNDRED MILLION DOLLARS HE SAID SUBSIDIARIES OF TWENTIETH CENTURY INSURE ABOUT TWO HUNDRED THOUSAND HOMES AND CONDOMINIUMS IN CALIFORNIA OF WHICH ONE HUNDRED THOUSAND TO ONE HUNDRED FIFTY THOUSAND ARE IN THE GENERAL QUAKE AREA MR. DINON SAID OF THOSE HE ESTIMATES THAT FORTY PERCENT HAVE EARTHQUAKE INSURANCE MANY POLICYHOLDERS WITH EARTHQUAKE COVERAGE WON'T RECEIVE BENEFITS HOWEVER BECAUSE SUCH POLICIES CARRY A DEDUCTIBLE OF TEN PERCENT OF THE POLICY AMOUNT COVERAGE FOR PERSONAL PROPERTY ALSO HAS A TEN PERCENT DEDUCTIBLE BASED ON SEVENTY PERCENT OF THE POLICY AMOUNT FOR EXAMPLE A HOME INSURED FOR ONE HUNDRED THOUSAND DOLLARS WOULD HAVE TO SUSTAIN DAMAGE OF MORE THAN TEN THOUSAND DOLLARS FOR A POLICY TO PAY OUT ANY BENEFITS FOR DAMAGE TO THE STRUCTURE PERSONAL PROPERTY LOSSES WOULD HAVE TO EXCEED TEN PERCENT OF SEVENTY THOUSAND DOLLARS OR SEVEN THOUSAND DOLLARS MR. DINON SAID BIOGEN INCORPORATED NAMED JAMES R. TOBIN PRESIDENT AND CHIEF OPERATING OFFICER IN A MOVE TO STRENGTHEN MANAGEMENT AS THE COMPANY PLANS A TRANSITION FROM RESEARCH TO PRODUCTION AND SALES OF BIOLOGICALLY ENGINEERED DRUGS MR. TOBIN FORTY NINE YEARS OLD UNTIL RECENTLY HELD THE SAME POSTS AT A COMPANY WITH SIXTY TIMES BIOGEN'S REVENUE BAXTER INTERNATIONAL INCORPORATED DEERFIELD ILLINOIS HIS POSTS AT BIOGEN WERE FORMERLY HELD BY JAMES L. VINCENT FIFTY FOUR WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE MR. TOBIN'S APPOINTMENT COMPLETES AN EIGHT PERSON MANAGEMENT TEAM INSTALLED BY MR. VINCENT WHO WAS HIRED IN NINETEEN EIGHTY FIVE TO TURN AROUND A MONEY LOSING VENTURE WHICH HE HAS DONE BIOGEN CAMBRIDGE MASSACHUSETTS HAS AMASSED THREE HUNDRED MILLION DOLLARS IN CASH FROM ROYALTIES ON PHARMACEUTICALS BASED ON ITS BIOTECHNOLOGY DISCOVERIES IT NOW WANTS TO BECOME A PHARMACEUTICAL CONCERN ITSELF MAKING AND SELLING PRODUCTS BASED ON ITS RESEARCH BIOGEN IS COUNTING ON THE MEDICAL INDUSTRY EXPERIENCE OF MR. TOBIN WHO RESIGNED LAST MONTH FROM BAXTER IN A DISAGREEMENT OVER CORPORATE STRATEGY TO MAKE THE TRANSITION A SUCCESS QUOTE AT BAXTER I'VE WORKED MY WAY UP FROM FLUNKY TO THE TOP QUOTE SAID MR. TOBIN WHO REPORTS TO HIS NEW JOB NEXT MONTH I'VE STARTED UP NEW PRODUCTS WORRIED ABOUT F. D. A. APPROVAL AND DONE JUST ABOUT EVERY ASPECT OF THINGS THAT NEED TO HAPPEN AT BIOGEN THE COMPANY HAS TENTATIVE PLANS TO SET UP A SALES STAFF NEXT YEAR OF ONE HUNDRED FIFTY TO TWO HUNDRED TO MARKET NEW DRUGS TO HOSPITALS MR. TOBIN SAID BIOGEN'S REVENUE NOW COMES FROM ROYALTIES FROM COMPANIES THAT MAKE AND SELL ITS DRUGS UNDER LICENSE ITS TWO MAINSTAYS A HEPATITIS B. VACCINE AND ALPHA INTERFERON USED AGAINST CANCER AND HEPATITIS HAVE BEEN WINDFALLS FOR LICENSEES SMITHKLINE BEECHAM P. L. C. AND SCHERING PLOUGH CORPORATION MR. VINCENT ESTIMATED THAT THE TWO DRUGS HAD COMBINED SALES OF MORE THAN ONE POINT FIVE BILLION DOLLARS LAST YEAR ARMED WITH A HEALTHY BALANCE SHEET AND WITH TWO PROMISING DRUGS IN CLINICAL TRIALS BIOGEN HOPES TO JOIN BIOTECH COMPANIES SUCH AS AMGEN INCORPORATED AND GENENTECH INCORPORATED THAT MANUFACTURE AND SELL PRODUCTS THAT THEY HAVE DEVELOPED BIOGEN HAS SAID IT EXPECTS EARNINGS OF ABOUT NINETY CENTS A SHARE FOR NINETEEN NINETY THREE A DROP OF TWENTY PERCENT FROM A YEAR EARLIER ONE DOLLAR AND TWELVE CENTS A SHARE IT ATTRIBUTES THE DECLINE TO THE COSTS OF CLINICAL TESTS REVENUE IS EXPECTED TO CLIMB TO ONE HUNDRED FIFTY MILLION DOLLARS HE SAID UP ELEVEN PERCENT FROM A YEAR EARLIER ONE HUNDRED THIRTY FIVE POINT ONE MILLION DOLLARS WHILE BIOGEN'S LICENSING AGREEMENTS WITH SMITHKLINE AND SCHERING CONTINUE INTO THE NEXT DECADE MR. VINCENT SAID THE COMPANY WILL MAKE AND MARKET ITS NEXT TWO PRODUCTS EXPECTED TO REACH THE MARKET IN THE NEXT TWO YEARS THE DRUGS BETA INTERFERON FOR THE TREATMENT OF MULTIPLE SCLEROSIS AND HIRULOG A BLOOD CLOT DISSOLVER ARE IN THE FINAL PHASES OF CLINICAL TESTS MR. TOBIN WILL BE IN CHARGE OF THE COMPANY'S PRODUCTS FROM R. AND D. TO CLINICAL TRIALS TO SALES AND DISTRIBUTION MR. VINCENT SAID POTENTIAL MARKETS ANALYSTS SAY ARE SUBSTANTIAL ABOUT FIVE HUNDRED MILLION DOLLARS IN ANTICOAGULANTS ARE SOLD ANNUALLY WHILE ANALYSTS THINK SALES OF BETA INTERFERON FOR MULTIPLE SCLEROSIS COULD HIT ONE BILLION DOLLARS BUT BIOGEN WILL HAVE TO DISPLACE DRUGS CURRENTLY IN USE AND NEW COMPETITORS IN EACH CATEGORY CHIRON CORPORATION EMERYVILLE CALIFORNIA RECEIVED F. D. A. APPROVAL LATE LAST YEAR TO MARKET ITS VERSION OF BETA INTERFERON AGAINST MULTIPLE SCLEROSIS AND HIRULOG WILL COMPETE WITH A SIMILAR DRUG FROM SWITZERLAND'S CIBA GEIGY EARNINGS IN THE NEXT FEW YEARS ARE LIKELY TO BE VOLATILE AS A RESULT OF COSTS OF NEW PRODUCT INTRODUCTIONS WHICH INCLUDE FIVE A EIGHT AN AIDS ANTIBODY AGENT ALREADY BIOGEN HAS WARNED ANALYSTS THAT IT EXPECTS EARNINGS THIS YEAR TO BE FLAT OR DOWN FROM NINETEEN NINETY THREE THE SOFT TOOTH NATURE OF FUTURE EARNINGS IS DUE TO AN AGGRESSIVE MARKETING PLAN MR. VINCENT SAID BUT WE'RE A REVENUE DRIVEN COMPANY MOST OF OUR INVESTORS WANT US TO SWING FOR THE FENCE THE U. S. MERCHANDISE TRADE DEFICIT NARROWED IN NOVEMBER AS IMPORTS AND EXPORTS DROPPED FROM OCTOBER'S RECORD HIGHS THE DEFICIT FELL TO TEN POINT ONE SEVEN BILLION DOLLARS FROM OCTOBER'S REVISED TEN POINT NINE OH BILLION DOLLARS THE COMMERCE DEPARTMENT SAID EXPORTS FELL LESS THAN ZERO POINT ONE PERCENT TO FORTY POINT ZERO SEVEN BILLION DOLLARS AND IMPORTS FELL ONE POINT FIVE PERCENT TO FIFTY POINT TWO FOUR BILLION DOLLARS ALTHOUGH SMALLER THAN THE PREVIOUS MONTH NOVEMBER'S GAP CONTINUED THE TREND OF MONTHLY DEFICITS EXCEEDING TEN BILLION DOLLARS FOR THE FIRST ELEVEN MONTHS OF NINETEEN NINETY THREE THE MERCHANDISE TRADE DEFICIT TOTALED ONE HUNDRED EIGHT POINT EIGHT OH BILLION DOLLARS EXCEEDING THE EIGHTY FOUR POINT FIVE OH BILLION DOLLARS FOR ALL OF NINETEEN NINETY TWO THE ELEVEN MONTH DEFICIT WAS THE LARGEST SINCE NINETEEN EIGHTY SEVEN WHICH ENDED WITH A RECORD GAP OF ONE HUNDRED FIFTY TWO POINT ONE TWO BILLION DOLLARS THE FIGURES DON'T INCLUDE THE U. S. TRADE SURPLUS IN SERVICES LARGE TRADE DEFICITS ARE THE PRICE THE U. S. PAYS FOR HAVING A RELATIVELY STRONGER ECONOMY THAN OTHER INDUSTRIALIZED COUNTRIES THE U. S. ECONOMY HAS BEEN STEADILY GROWING AND IMPORTS INCREASING SINCE THE BOTTOM OF THE RECESSION NEARLY THREE YEARS AGO THE WORSENING ECONOMIC TROUBLES OF JAPAN AND EUROPE IN THE SAME PERIOD HAVE LED THEM TO BUY FEWER U. S. GOODS BRIAN HORRIGAN AN ECONOMIST WITH LOOMIS AND SAYLES A BOSTON MONEY MANAGEMENT FIRM POINTED OUT THAT THE TRADE BALANCE WOULD BE MUCH WORSE IF IT WEREN'T OFFSET BY THE DROP IN IMPORTED OIL PRICES TO THIRTEEN DOLLARS AND SIXTY NINE CENTS A BARREL IN NOVEMBER FROM FOURTEEN DOLLARS AND SIXTY CENTS IN OCTOBER DESPITE THE WOEFUL ECONOMIC CONDITION OF EUROPE AND JAPAN U. S. EXPORTS GREW SIX PERCENT IN THE TWELVE MONTHS ENDED IN NOVEMBER AND CONTINUED IN THE LATEST MONTH NEAR THE RECORD HIGHS SET IN OCTOBER JOSEPH LIRO OF S. G. WARBURG AND COMPANY SAID THIS INDICATES U. S. MANUFACTURERS HAVE IMPROVED QUALITY AND REDUCED UNIT LABOR COSTS TO RE EMERGE AS QUOTE TOUGH GLOBAL COMPETITORS QUOTE THE POLITICALLY EXPLOSIVE TRADE DEFICIT WITH JAPAN SHRANK IN NOVEMBER TO FIVE POINT SEVEN TWO BILLION DOLLARS FROM SIX POINT OH NINE BILLION DOLLARS IN OCTOBER THE DEFICIT WITH CHINA DECREASED TO TWO POINT ONE TWO BILLION DOLLARS FROM TWO POINT SIX SIX BILLION DOLLARS THE TRADE POSITION WITH WESTERN EUROPE TOOK THE HARDEST HIT WITH THE DEFICIT INCREASING TO ONE POINT ONE NINE BILLION DOLLARS IN NOVEMBER FROM ONE HUNDRED SEVENTY MILLION DOLLARS IN OCTOBER DOCTOR LIRO SAID THIS WAS MAINLY BECAUSE EUROPEANS CUT BACK ON PURCHASES OF CAPITAL GOODS SUCH AS MACHINE TOOLS AND COMMUNICATIONS EQUIPMENT BIG EXPORT GAINS WERE REPORTED BY CIVILIAN AIRCRAFT ENGINES AND TOBACCO BIG EXPORT DECLINES WERE RECORDED IN NONMONETARY GOLD WHICH HAS BEEN UNUSUALLY HIGH ALL YEAR AND CIVILIAN AIRCRAFT WHICH HAS SUFFERED FROM THE WEAK GLOBAL ECONOMY AND COMPETITION FROM EUROPE'S SUBSIDIZED AIRBUS INDUSTRIE BEGINNING WITH JANUARY STATISTICS THE COMMERCE DEPARTMENT WILL BEGIN REPORTING MONTHLY ON TRADE IN BOTH GOODS AND SERVICES CURRENTLY DATA ON SERVICES ARE AVAILABLE ONLY ON A QUARTERLY BASIS FIGURES ARE ADJUSTED FOR NORMAL SEASONAL VARIATIONS EXCEPT THOSE GIVEN FOR INDIVIDUAL COUNTRIES OR REGIONS A DATA ERROR INVOLVING A NEW ZEALAND COMPANY WAS CORRECTED IN THE DOW JONES WORLD STOCK INDEX RESULTING IN A RECALCULATION OF THE INDEX SERIES THE NEW INDEX NUMBERS APPEAR IN TODAY'S EDITION OF THE WALL STREET JOURNAL THE CHANGES AFFECT INDEXES FOR NEW ZEALAND IN BOTH LOCAL CURRENCY AND U. S. DOLLARS THE WORLD INDEX ITSELF WAS MINIMALLY AFFECTED THE WORLD INDEX CLOSED TUESDAY IN U. S. DOLLAR TERMS AT ONE HUNDRED THIRTEEN POINT FOUR FOUR RATHER THAN ONE HUNDRED THIRTEEN POINT FOUR THREE AS ORIGINALLY REPORTED OIL PRICES WHICH HAVE BEEN IN A SLUMP JUMPED YESTERDAY AS SUB ZERO WEATHER CONTINUED TO GRIP MUCH OF THE EASTERN SEABOARD THE EXTREME COLD CAUSED ELECTRIC UTILITIES IN PENNSYLVANIA MARYLAND NEW JERSEY NEW YORK AND NORTH CAROLINA TO REDUCE POWER TO CUSTOMERS AS DEMAND FOR POWER ESCALATED ROLLING BLACKOUTS AS FAR SOUTH AS WASHINGTON D. C. WERE THREATENED AS THE CALL ON POWER GREW GOVERNMENT OFFICES IN SOME OF THE STATES CLOSED DOWN EARLY TO REDUCE THEIR DRAW ON VOLTAGE AND AMTRAK SHARPLY CUT ITS TRAIN SERVICE IN THE AREA SOME POWER PLANTS WERE REPORTEDLY RUNNING SHORT OF THE PETROLEUM NEEDED TO RUN THEM CLOSURE OF A MAJOR TEXACO INCORPORATED PIPELINE CARRYING CRUDE FROM CUSHING OKLAHOMA TO MIDLAND TEXAS ALSO CAUSED A SPIKE IN PRICES THE PIPELINE CARRIES WEST TEXAS INTERMEDIATE CRUDE OIL ONE OF THE PRIMARY CRUDES DELIVERED AGAINST FUTURES CONTRACTS TRADED AT THE NEW YORK MERCANTILE EXCHANGE A TEXACO SPOKESMAN SAID THAT THE PIPELINE IS UNDERGOING REPAIRS AFTER A SUPPORT TOWER COLLAPSED CAUSING A PORTION OF THE PIPELINE TO SAG TRADERS WERE CONCERNED THAT THERE MIGHT NOT BE ENOUGH CRUDE IN STORAGE TO SATISFY DELIVERY ON FUTURES CONTRACT COMMITMENTS DURING FEBRUARY CRUDE OIL FOR FEBRUARY DELIVERY SETTLED AT FIFTEEN DOLLARS AND TWENTY TWO CENTS A BARREL UP THIRTY FIVE CENTS HEATING OIL AND GASOLINE PRICES ROSE AS WELL BUT TRADERS YESTERDAY WERE UNSURE HOW LONG BUYING EUPHORIA WOULD CONTINUE STATISTICS RELEASED BY THE AMERICAN PETROLEUM INSTITUTE AFTER THE MARKET CLOSED WERE GREETED WITH MIXED REACTION ALSO BEARISH WAS A REPORT FROM THE SECRETARIAT OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES THAT DEMAND FOR OPEC CRUDE DURING THE FOURTH QUARTER OF NINETEEN NINETY THREE WAS ACTUALLY THREE HUNDRED THIRTY THOUSAND BARRELS A DAY LESS THAN ANTICIPATED THE SECRETARIAT ALSO REPORTED THAT THE GROUP'S OUTPUT IN DECEMBER INCREASED TO TWENTY FOUR MILLION SEVEN HUNDRED THIRTY THOUSAND BARRELS DAILY UP FROM TWENTY FOUR MILLION SIX HUNDRED THIRTY THOUSAND BARRELS DURING NOVEMBER QUOTE BUT NEWS FROM OPEC HAS BEEN TAKING A BACKSEAT TO THE WEATHER LATELY QUOTE SAID ANDY LEBOW ANALYST FOR E. D. AND F. MAN INTERNATIONAL FUTURES INCORPORATED IN NEW YORK GRAINS AND SOYBEANS PRICES OF WHEAT AND CORN FUTURES CONTRACTS FELL FOR THE SECOND CONSECUTIVE DAY WHEAT PRICES ARE UNDER PRESSURE FROM SIGNS THE U. S. AGRICULTURE DEPARTMENT PLANS TO TRIM ITS EXPORT SUBSIDY BUDGET MUCH OF THE WHEAT EXPORTED FROM THE U. S. MOVES UNDER THE EXPORT ENHANCEMENT PROGRAM THE DEPARTMENT COMPENSATES EXPORTERS THAT SELL U. S. WHEAT AT A DISCOUNT TO TARGETED NATIONS SUCH AS CHINA AND RUSSIA CORN PRICES FELL AS COMMODITY FUND MANAGERS CONTINUED TO TAKE PROFITS ON A RALLY THAT HAS LASTED SINCE OCTOBER SOYBEAN PRICES SETTLED MIXED ANALYSTS ARE FOLLOWING REPORTS THAT A MAJOR GRAIN MERCHANT IS ARRANGING THE IMPORT INTO THE U. S. OF TWENTY THOUSAND METRIC TONS OF BRAZILIAN SOYBEAN OIL A METRIC TON IS TWO THOUSAND TWO HUNDRED FOUR POINT SIX TWO POUNDS THE MOVE IS UNUSUAL BECAUSE THE U. S. IS USUALLY A MAJOR SOYBEAN EXPORTER THE RECORD RAIN AND FLOODING ACROSS THE MIDWEST LAST YEAR REDUCED BOTH THE SIZE AND QUALITY OF THE U. S. SOYBEAN CROP BRAZIL MEANWHILE IS PREPARING FOR A LARGE SOYBEAN HARVEST IN A FEW MONTHS SOYBEANS ARE CRUSHED TO MAKE OIL AND MEAL COFFEE FUTURES PRICES SLUMPED AS TRADERS SKEPTICALLY VIEWED THE EXPORT LIMITING AGREEMENT OF LATIN AMERICAN COFFEE PRODUCERS AT NEW YORK'S COFFEE SUGAR AND COCOA EXCHANGE COFFEE FOR MARCH DELIVERY WAS DOWN TWO POINT ONE FIVE CENTS TO SEVENTY TWO POINT FIVE OH CENTS AN OUNCE LATIN AMERICAN AND AFRICAN COFFEE PRODUCING NATIONS HAVE JOINED FORCES TO LIMIT EXPORTS AT TIMES THAT PRICES ARE BELOW EIGHTY CENTS A POUND BUT SOME LATIN AMERICAN COUNTRIES NOTABLY BRAZIL HAVE HAD A HARD TIME HONORING THEIR OBLIGATIONS UNDER THE AGREEMENT ANALYSTS SAID YESTERDAY'S PRICE DROP IN PART REFLECTED DOUBT AMONG FUTURES TRADERS THAT THE EXPORT LIMITING AGREEMENT WILL LAST AMERICAN PETROLEUM INSTITUTE INVENTORY STATISTICS RELEASED WEDNESDAY SHOWED THAT CRUDE OIL STOCKS DECREASED BY FIVE HUNDRED FIVE THOUSAND BARRELS TO THREE HUNDRED THIRTY THREE MILLION FIVE HUNDRED FORTY THOUSAND BARRELS LAST WEEK DISTILLATE OR HEATING OIL AND DIESEL FUEL INVENTORIES DECREASED BY FOUR MILLION SEVEN HUNDRED SEVENTY THREE THOUSAND BARRELS TO ONE HUNDRED THIRTY SEVEN MILLION SEVENTY NINE THOUSAND BARRELS GASOLINE INVENTORIES ROSE IN THURSDAY'S COMMODITIES COLUMN THE FIGURES WERE MISSTATED WORLD AIRWAYS INCORPORATED FILED WITH THE DEPARTMENT OF TRANSPORTATION SEEKING TRAFFIC RIGHTS TO OPERATE FLIGHTS BETWEEN THE U. S. AND SOUTH AFRICA THE CARRIER A UNIT OF WORLDCORP INCORPORATED SAID ITS PLANS CALL FOR A MARKETING AGREEMENT WITH A MAJOR U. S. AIRLINE TO PROVIDE CONNECTING SERVICE AMONG OTHER THINGS WORLD AIRWAYS SAID IT WANTS TO BEGIN FLYING TO SOUTH AFRICA JULY FIRST IN ITS FILING WITH THE TRANSPORTATION DEPARTMENT WORLD AIRWAYS ESTIMATED THAT ITS PROPOSED SERVICE WOULD GENERATE A PROFIT OF FOUR POINT NINE MILLION DOLLARS IN THE FIRST YEAR AMID THE WRECKAGE OF LINDA RAE'S HIS SAN FERNANDO VALLEY KNICKKNACK SHOP DENNIS BLACK SAYS MONDAY'S EARTHQUAKE DELIVERED A SHARP EXCLAMATION POINT TO AN INCREASINGLY GRIM REALITY OPERATING A SMALL BUSINESS IN A REGION ALREADY WRACKED BY RIOTS AND RECESSION IS A SHAKY PROPOSITION MR. BLACK SAYS THE DOWNHILL SLIDE OF HIS BUSINESS HAS BEEN UNDER WAY FOR YEARS AND INVOLVES MANY FORCES OTHER THAN GEOLOGY CHANGING DEMOGRAPHICS LINGERING RECESSION THE NINETEEN NINETY TWO RIOTS AND RISING CRIME HAVE ALL TAKEN THEIR TOLL ON HIS FINANCES AS WELL AS HIS OUTLOOK HE STILL VIVIDLY RECALLS THE BULLET FIRED FROM A PASSING CAR THAT GRAZED HIS SCALP FOUR YEARS AGO AS HE STOOD OUTSIDE HIS STORE QUOTE THIS BUSINESS USED TO BE FUN QUOTE SAYS MR. BLACK OF HIS SHOP IN RESEDA A FEW MINUTES DRIVE FROM THE QUAKE'S EPICENTER BUT IT ISN'T FUN ANYMORE HE ADDS PICKING UP A SHATTERED GLASS PITCHER ONE OF HUNDREDS OF ITEMS THROWN ABOUT BY THE QUAKE MR. BLACK HAS LOTS OF COMPANY AS RESIDENTS HERE DIG OUT FROM UNDER THE WRECKAGE OF THE AREA'S WORST EARTHQUAKE THIS CENTURY MANY OF THE BIGGEST ECONOMIC VICTIMS WILL BE SMALL BUSINESS OWNERS THOUSANDS LIKE MR. BLACK FIND THEMSELVES UNINSURED AND WITHOUT THE RESERVES TO QUICKLY RECOVER FOR UNLIKE LARGER COMPANIES MANY SMALL BUSINESSES OPERATE IN AN ENVIRONMENT IN WHICH MAKING ENOUGH MONEY TO GET TO THE END OF EACH MONTH IS A SIGNIFICANT ACCOMPLISHMENT SMALL BUSINESS BY ITS NATURE HAS LESS INSULATION IT IS A TENUOUS EXISTENCE SAYS CRAIG ARONOFF DIRECTOR OF THE FAMILY ENTERPRISE CENTER AT KENNESAW STATE COLLEGE IN MARIETTA GEORGIA DISASTERS SUCH AS THE QUAKE CAN BE THE ULTIMATE TEST FOR AN ENTREPRENEUR HE ADDS IT IS A TIME WHEN THE SKIN IS RIPPED AWAY AND YOU SEE THE HEART OF A SMALL BUSINESS SINCE MONDAY THE HEART OF THE SMITH BROTHERS COFFEE CAFE NEAR SOUTH CENTRAL LOS ANGELES HAS BEEN SOGGY ITS FUTURE BRITTLE THE FLOOR IS COVERED WITH BROKEN GLASS AND CHINA SPILLED SODA AND SUGAR AND SODDEN BISCOTTI THE CAFE WAS FLOODED WHEN A WATER PIPE BROKE DURING THE QUAKE OWNER GREGORY D. SMITH DOESN'T HAVE INSURANCE AND ISN'T SURE WHERE HE CAN TURN FOR HELP TO REPLACE MY INVENTORY WILL BE DIFFICULT IF NOT IMPOSSIBLE HE SAYS IF PAST DISASTERS ARE ANY GUIDE MANY SMALL BUSINESSES IN THIS REGION WON'T SURVIVE THE QUAKE OF NINETY FOUR OF ONE HUNDRED SEVENTY KOREAN AMERICAN OWNED STORES DAMAGED AND CLOSED AFTER THE NINETEEN NINETY TWO LOS ANGELES RIOTS ONLY SIX HAVE BEEN ABLE TO REOPEN SAYS THE KOREAN AMERICAN GROCER'S ASSOCIATION A TRADE GROUP SUCH DIRECT ASSAULTS ON SMALL BUSINESSES HAVE BEEN MAGNIFIED BY EXTRANEOUS FACTORS NOT THE LEAST OF WHICH HAVE BEEN A LINGERING RECESSION THAT BEGAN IN NINETEEN NINETY AND A SUBSEQUENT SHAKEOUT IN THE REGION'S IMPORTANT DEFENSE SECTOR WHICH HAS COST TENS OF THOUSANDS OF JOBS MR. SMITH'S COFFEE CONCERN IS A TEXTBOOK CASE OF HOW LITTLE COMPANIES WITHER UNDER THESE REPEATED BLOWS THOUGH HE SUFFERED NO DIRECT PHYSICAL DAMAGE IN THE RIOTS MANY OF THE CUSTOMERS PROPELLING HIS BRISK MAIL ORDER BUSINESS WITH SMITH BROTHERS COFFEE WERE WIPED OUT SOME MOVED AWAY AND OTHERS NEVER REBUILT QUOTE MY WHOLE DISTRIBUTION NETWORK WAS SEVERED QUOTE MR. SMITH SAYS LIKE HUNDREDS OF OTHER SMALL BUSINESS OWNERS MR. SMITH APPLIED FOR A FEDERAL DISASTER LOAN THROUGH THE SMALL BUSINESS ADMINISTRATION ALTHOUGH SUCH LOANS HELP MANY SMALL BUSINESS OPERATORS MORE THAN A THIRD OF THOSE WHO APPLY HISTORICALLY ARE TURNED DOWN USUALLY BECAUSE OF INADEQUATE FINANCES MR. SMITH SAYS HE WAS REJECTED BECAUSE HE LACKED A FIVE YEAR BUSINESS PLAN SO HE SCRAMBLED TO SURVIVE SWITCHING HIS EFFORTS FROM WHOLESALE TO A POTENTIALLY HIGHER MARGIN CAFE TO RAISE THE FOUR THOUSAND DOLLARS HE NEEDED TO OPEN A NEW LOCATION HE HUSTLED ODD JOBS IN HIS SIDELINE AS AN ACTOR SHAKEN BY THE RIOTS MR. SMITH TRIED TO BUY SOME BUSINESS INSURANCE WARY OF FLY BY NIGHT FIRMS HE CONTACTED ONLY MAJOR INSURERS BUT HIS INNER CITY LOCATION WORKED AGAINST HIM WHEN HE CALLED LARGE COMPANIES WOULDN'T EVEN ENTERTAIN THE THOUGHT OF SELLING HIM A POLICY MR. SMITH SAYS SO HE REMAINED UNINSURED SCORES OF OTHER SMALL BUSINESS OWNERS DISCOVERED AFTER THE RIOTS THAT HAVING AN INSURANCE POLICY ISN'T NECESSARILY THE SAME AS BEING INSURED MANY WERE SCAMMED BY CROOKED INSURERS WHO TOOK THEIR PREMIUMS BUT DISAPPEARED WHEN DISASTER STRUCK THE OPERATOR OF ONE SUCH FIRM RECENTLY WAS SENTENCED TO SEVENTEEN YEARS IN FEDERAL PRISON FOR VARIOUS INSURANCE FRAUDS EVEN SOME OF THE FEW SOUTHERN CALIFORNIA SMALL BUSINESS OWNERS WHO BOUGHT EARTHQUAKE INSURANCE ARE WONDERING HOW MUCH IT WILL HELP THEM IN ADDITION TO BEING COSTLY SUCH POLICIES GENERALLY HAVE HIGH DEDUCTIBLES JANE KENNEDY WHO DOES HAVE EARTHQUAKE INSURANCE SAYS MONDAY'S TREMOR DID ABOUT FIFTEEN THOUSAND DOLLARS IN DAMAGE TO THE CONTENTS OF HER BEAUTY PRODUCTS SHOP CALLED PALMETTO IN SANTA MONICA IT SENT THREE GLASS WINDOW DISPLAYS LOADED WITH MERCHANDISE CRASHING TO THE GROUND BREAKING SCORES OF BOTTLES AND DAMAGING NEW CARPETING MS. KENNEDY BOUGHT HER POLICY THREE YEARS AGO AFTER A FEW MINOR QUAKES RATTLED HER SHOP BUT HER DEDUCTIBLE IS ABOUT TEN THOUSAND DOLLARS MAKING UP THAT LOSS HERSELF WILL SET ME BACK ONE OR TWO YEARS MS. KENNEDY SAYS WITH ITS THREE FULL TIME EMPLOYEES AND FOUR THOUSAND TWO HUNDRED DOLLARS IN MONTHLY RENT PALMETTO ALREADY WAS STRUGGLING TO COVER COSTS IN THE WEAK LOCAL ECONOMY DESPITE GOING TO A SEVEN DAY WORKWEEK EARLY LAST YEAR THE SHOP'S WEEKLY SALES OF ABOUT TEN THOUSAND DOLLARS ARE STILL TEN PERCENT BELOW NINETEEN NINETY ONE LEVELS FOR MR. BLACK THE OWNER OF LINDA RAE'S EARTHQUAKE INSURANCE WAS SIMPLY A LUXURY HE COULDN'T AFFORD WITH SIX CHILDREN YOU OFTEN HAVE TO CHOOSE BETWEEN PUTTING FOOD ON THE TABLE OR MONEY INTO THE BUSINESS HE SAYS THE BUSINESS HAS NEVER BEEN HIGHLY PROFITABLE SELLING USED KNICKKNACKS ISN'T THE KIND OF BUSINESS WHERE YOU DRIVE A MERCEDES THE ONE TIME ACCOUNTANT SAYS BUT FOR YEARS THE SIXTEEN YEAR OLD SHOP DID ALLOW HIM AND HIS FAMILY TO MOTOR ALONG IN A MODEST BUT ACCEPTABLE STYLE A DECENT THOUGH RENTED HOUSE TWO CARS AND AN OCCASIONAL NIGHT OUT AT A NEARBY SIZZLER RESTAURANT BACK IN NINETEEN SEVENTY EIGHT MR. BLACK RECALLS RESEDA WAS LIKE MUCH OF THE SAN FERNANDO VALLEY STILL A LARGELY WHITE WORKING CLASS AREA HIS LOW PRICED COLLECTIBLE ITEMS WHICH HE DESCRIBES AS RANGING FROM JUNK TO SOME NICE OLD STUFF FOUND A READY MARKET AMONG THE LOCALS HIS BUSINESS WAS HELPED BY SURROUNDING THRIFT SHOPS AND A LOCAL PIZZA PARLOR WHICH ATTRACTED CUSTOMERS AND HELPED GENERATE FOOT TRAFFIC IN THE AREA MR. BLACK WISTFULLY RECALLS THE SATURDAYS JUST A FEW YEARS BACK WHEN HIS STORE WOULD BE JAMMED WITH CUSTOMERS FROM MORNING TO WELL AFTER DARK BUT THEN THE NEIGHBORHOOD STARTED CHANGING FOR THE WORSE FROM MR. BLACK'S PERSPECTIVE A FLOOD OF IMMIGRANTS FROM LATIN AMERICA ASIA AND THE MIDDLE EAST FLOWED INTO LOS ANGELES IN THE NINETEEN EIGHTIES MANY SETTLED IN THE SAN FERNANDO VALLEY DRAMATICALLY CHANGING THE DEMOGRAPHICS AND SPENDING HABITS OF THE AREA THE PIZZA PARLOR NEAR LINDA RAE'S IS NOW AN IRANIAN SHISH KEBAB RESTAURANT SEVERAL STORES ACROSS THE STREET NOW SPORT SIGNS PARTLY WRITTEN IN VIETNAMESE THE FIFTY TWO YEAR OLD MR. BLACK A LIFE LONG RESIDENT OF THE AREA CONCEDES THAT HE ISN'T IN TUNE WITH THE TASTES OF HIS NEW NEIGHBORS AND THEY DON'T SEEM INTERESTED IN BUYING WHAT HE HAS TO SELL BUT FAR WORSE HE SAYS IS THE PROBLEM PLAGUING MUCH OF URBAN AMERICA RISING CRIME BESIDES THE UNEXPECTED HAIR TRIM BY GUNSHOT MR. BLACK SAYS SHOTS HAVE BEEN FIRED THROUGH THE FRONT WINDOW OF HIS STORE THREE TIMES TO PROTECT HIS BACK ENTRANCE AFTER REPEATED BREAK IN ATTEMPTS MR. BLACK PUT UP A CHAIN LINK FENCE THEN TOPPED IT WITH BARBED WIRE AND LATER REPLACED THAT WITH MUCH SHARPER RAZOR WIRE QUOTE I'VE PUT MORE MONEY INTO KEEPING PEOPLE OUT OF THE STORE THAN BRINGING THEM IN QUOTE HE SAYS FEAR OF CRIME HAS LED TO A PRECIPITOUS DROP IN FOOT TRAFFIC IN THE AREA AND THE STORE RARELY STAYS OPEN AFTER DARK ANYMORE CRIME IS SO BAD THAT I'M AFRAID TO SAY HELLO TO ANYONE I DON'T FEEL LIKE I BELONG HERE ANYMORE MR. BLACK SAYS BUSINESS IS DOWN MORE THAN FIFTY PERCENT FROM ITS PEAK SEVERAL YEARS AGO HE ESTIMATES THE BLACKS HAVE THOUGHT ABOUT LEAVING THE VALLEY AND MOVING TO ARKANSAS WHERE MR. BLACK LIVED FOR A TIME BUT HIS WIFE LINDA WHO IS CO OWNER OF THE STORE AS WELL AS ITS NAMESAKE WORKS FOR THE LOS ANGELES SCHOOL DISTRICT THAT JOB PROVIDES THE FAMILY WITH HEALTH INSURANCE THEY OTHERWISE COULDN'T AFFORD UNLESS SHE FINDS A JOB WITH SIMILAR COVERAGE ELSEWHERE WE'RE TRAPPED IN LOS ANGELES MR. BLACK SAYS SO LIKE OTHER SMALL BUSINESS QUAKE VICTIMS MR. BLACK IS TURNING HIS ATTENTION TO CLEANING UP AND REBUILDING MORE THAN SEVENTY FIVE PERCENT OF HIS STOCK HAS BEEN DAMAGED OR DESTROYED THE PHYSICAL CLEANUP WITH SHARDS OF BROKEN GLASS AND TUMBLED SHELVES EVERYWHERE WILL TAKE DAYS IF NOT WEEKS CRACKS IN THE BUILDING WILL ALSO HAVE TO BE INSPECTED FOR SIGNS OF STRUCTURAL DAMAGE PSYCHOLOGICAL DAMAGE MAY BE HARDER TO REPAIR RIGHT NOW I AM NUMB SAYS MR. BLACK AS HE AND HIS WIFE PICK THEIR WAY THROUGH THE JUMBLE ON THE STORE'S FLOOR SOMETIMES THINKING ABOUT THE WORK AND SWEAT THAT WENT INTO BUILDING THE STORE'S COLLECTION HE SAYS I JUST WANT TO CRY STILL IN THE PAST FEW DAYS AS SCORES OF AFTERSHOCKS HAVE ROLLED THROUGH THE AREA MR. BLACK HAS MANAGED TO MAINTAIN A SURPRISINGLY GOOD HUMOR AND A CERTAIN RESOLUTENESS ABOUT THE FUTURE HE SAYS HE WILL TRY TO AVOID APPLYING FOR DISASTER LOANS AS A MATTER OF PRINCIPLE QUOTE I'VE NEVER ASKED FOR ANYTHING QUOTE HE SAYS AND HE DOESN'T SEE WHY A QUAKE SHOULD CHANGE THAT HE DOES HAVE SOME NASCENT REVENUE RAISING IDEAS EVEN THOUGH MOST ARE MORE TONGUE IN CHEEK THAN REAL POINTING TO BOXES OF SMASHED OBJETS D'ART THAT HE AND HIS WIFE HAVE HAULED OUTSIDE MR. BLACK JOKINGLY INVITES A VISITOR TO BROWSE WE'RE HAVING A BROKEN GLASS SALE HE ANNOUNCES SCIENTISTS HAVE MADE THE SURPRISING DISCOVERY THAT INHERITING A SINGLE GENE CAN INCREASE THE RISK OF DEVELOPING OSTEOPOROSIS THE SEVERE BONE THINNING PROBLEM AFFLICTS ABOUT TWENTY FIVE MILLION ELDERLY U. S. WOMEN AND COSTS ABOUT TEN BILLION DOLLARS A YEAR IN MEDICAL BILLS NATIONWIDE SHOULD THE FINDING STAND UP UNDER SCRUTINY RESEARCHERS SAID THEY EXPECT IT TO LEAD QUICKLY TO A BLOOD TEST THAT COULD PREDICT EARLY IN LIFE WHETHER A PERSON IS AT HIGH RISK OF DEVELOPING OSTEOPOROSIS DOCTORS WHO TREAT THE DISORDER SAID SUCH A PREDICTIVE TEST MIGHT ENCOURAGE A LIFETIME USE OF NUTRITIONAL AND HORMONAL SUPPLEMENTS KNOWN TO REDUCE THE PROBLEMS SUCH AS FRACTURES COMMONLY ASSOCIATED WITH THE DISEASE QUOTE IF THIS GENE IS THE REAL CULPRIT AND THE DATA SO FAR LOOK EXCELLENT THEN WE HAVE A VERY POWERFUL WAY OF HELPING TO PREVENT OSTEOPOROSIS QUOTE SAID GREG MUNDY A BONE BIOLOGIST AT UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER IN SAN ANTONIO OSTEOPOROSIS CAUSES ABOUT ONE POINT THREE MILLION BONE FRACTURES A YEAR IN THE ELDERLY AND ACCOUNTS FOR BETWEEN TWENTY FIVE THOUSAND AND THIRTY FIVE THOUSAND DEATHS ANNUALLY ACCORDING TO DISEASE EXPERTS AMERICANS SPEND ABOUT ONE BILLION DOLLARS A YEAR ON PRESCRIPTION AND NONPRESCRIPTION MEDICINES BELIEVED TO COUNTER THE DISEASE'S IMPACT PREVENTING OSTEOPOROSIS IS ONE OF THE MAJOR REASONS BEHIND THE BOOMING SALES OF ESTROGEN PRODUCTS IN THE U. S. AND ABROAD DOCTOR MUNDY SAID THE LINKING OF OSTEOPOROSIS TO A SINGLE GENE IS CERTAIN TO RAISE EYEBROWS AND AT FIRST GLANCE MAY SEEM UNLIKELY MAINLY BECAUSE SCIENTISTS THINK LOSS OF BONE DENSITY IN AGING PEOPLE IS DUE TO A COMPLEX INTERPLAY OF NUMEROUS GENETIC AND ENVIRONMENTAL FACTORS ONE GENE DOCTOR MUNDY SAID IT'S VERY UNEXPECTED THE GENE PINPOINTED BY A TEAM OF AUSTRALIAN SCIENTISTS PRODUCES A PROTEIN IN THE BODY THAT HELPS VITAMIN D. TRANSPORT BONE ENRICHING CALCIUM INTO BONE CELLS THE AUSTRALIAN RESEARCHERS FOUND THAT PEOPLE WITH A VERSION OF THE PROTEIN PRODUCED BY A SPECIFIC VARIATION OF THE GENE HAD SIGNIFICANTLY LOWER BONE DENSITIES THAN PEOPLE BORN WITH ANOTHER VERSION OF THE GENE IN A REPORT OF THE RESEARCH PUBLISHED IN THE BRITISH SCIENTIFIC JOURNAL NATURE SCIENTISTS AT GARVAN INSTITUTE OF MEDICAL RESEARCH IN SYDNEY SAID THAT OF THREE HUNDRED ELEVEN WOMEN OVER AGE SIXTY SIXTY ONE PERCENT WITH THE IDENTIFIED GENE HAD A LOW BONE DENSITY LEVEL THAT PUT THEM AT RISK OF HAVING A FRACTURE CONVERSELY THE RESEARCHERS FOUND SEVENTY FOUR PERCENT OF THOSE WOMEN WITH A DIFFERENT VERSION OF THE SAME GENE HAD BONE THICKNESS LEVELS THAT PUT THEM AT LOW RISK OF FRACTURES IN RECENT YEARS RESEARCH HAS SHOWN THAT WOMEN WHO EXERCISE AND TAKE CALCIUM SUPPLEMENTS AND THE HORMONE ESTROGEN ARE LESS LIKELY TO SUFFER SEVERE BONE THINNING AND RESULTANT FRACTURES THAT OFTEN WORSEN AFTER MENOPAUSE MANY WOMEN STILL SHY AWAY FROM ESTROGEN THERAPY WORRIED BY REPORTS THAT ESTROGEN USE MAY RAISE THEIR RISK OF BREAST CANCER EVEN SO SALES OF AMERICAN HOME PRODUCTS CORPORATION'S PREMARIN THE COUNTRY'S LEADING PRESCRIPTION ESTROGEN PRODUCT ROSE THIRTY TWO PERCENT IN NINETEEN NINETY TWO TO SIX HUNDRED FORTY TWO MILLION DOLLARS BUT SOME SCIENTISTS INCLUDING JOHN EISMAN AT THE GARVAN INSTITUTE IN AUSTRALIA HAVE SUSPECTED THAT GENETICS ALSO PLAYS A ROLE IN BONE DENSITY DOCTOR EISMAN DECIDED TO LOOK AT THE GENETICS UNDERLYING THE VITAMIN D. RECEPTOR BECAUSE A HORMONE MADE FROM THE VITAMIN HELPS FERRY CALCIUM TO BONE CELLS SEVERAL YEARS AGO HE AND OTHERS FOUND VARIATIONS IN THE STRUCTURE OF THE PROTEIN RECEPTOR FOR VITAMIN D. THAT SITS ON THE SURFACE OF BONE CELLS THE RESEARCHERS FOUND THAT THE RECEPTOR CAN VARY AMONG INDIVIDUALS BASED ON WHICH VERSION THEY HAVE OF THE GENE THAT MAKES THE RECEPTOR DOCTOR EISMAN'S TEAM DECIDED TO SEE WHETHER THE GENETIC VARIATION AFFECTS BONE DENSITY BY STUDYING NUMEROUS SETS OF TWINS IN THE NEW STUDY THE RESEARCHERS REPORT THAT IDENTICAL TWINS WHO HAVE THE SAME VERSION OF THE GENE ALMOST ALWAYS HAD SIMILAR BONE DENSITIES BUT IN NONIDENTICAL TWINS WHOSE GENES DIFFER BONE DENSITY LEVELS VARIED DEPENDING ON WHICH OF SEVERAL FORMS OF THE RECEPTOR GENE WERE INHERITED IN PARTICULAR PEOPLE WITH THE SO CALLED BB VERSION OF THE VITAMIN D. RECEPTOR GENE CONSISTENTLY HAD MUCH LOWER BONE DENSITY THAN PEOPLE WITH ANOTHER VERSION DUBBED DOUBLE B. OSTEOPOROSIS IS DEVASTATING BUT IT CAN BE PREVENTED SAID LAWRENCE E. SHULMAN DIRECTOR OF THE NATIONAL INSTITUTE OF ARTHRITIS MUSCULOSKELETAL AND SKIN DISEASES WHICH FUNDED DOCTOR EISMAN'S STUDY WE HOPE THIS RESEARCH WILL ENCOURAGE THOSE AT VERY HIGH RISK TO TAKE ACTION HE SAID WOMEN SHOULD CONTINUE TAKING PREVENTIVE THERAPIES NO MATTER WHAT GENE FORM THEY INHERIT BECAUSE ALL AGING WOMEN EXPERIENCE SOME DEGREE OF BONE LOSS IN THE NATURE ARTICLE DOCTOR EISMAN AND HIS COLLEAGUES CONCEDE THAT THE EXACT BIOLOGY UNDERLYING THIS DIFFERENCE IS UNCERTAIN STILL THEY WRITE A BLOOD TEST TO IDENTIFY THE GENE VARIATION QUOTE SHOULD ALLOW FOR EARLIER INTERVENTION IN THOSE AT INCREASED RISK OF OSTEOPOROSIS PROVIDE INSIGHT INTO THE PHYSIOLOGICAL MECHANISMS OF THE WIDE POPULATION VARIANCE IN BONE DENSITY AND OPEN THE WAY TO DEVELOPMENT OF SPECIFIC TARGETED THERAPY QUOTE DIGICON INCORPORATED SAID IT WILL ISSUE STOCK AND PROVIDE CAPITAL FOR PART OWNERSHIP OF THREE NEW COMPANIES THAT WILL PROVIDE GEOPHYSICAL SERVICES IN THE FORMER SOVIET UNION THE VALUE OF THE TRANSACTION IS ABOUT SIXTEEN MILLION DOLLARS DIGICON SAID IT PLANS TO ISSUE BETWEEN FIVE POINT ONE MILLION AND FIVE POINT FOUR MILLION SHARES OF COMMON STOCK TO M. D. SEIS A GEOPHYSICAL AND PETROLEUM CONSULTING FIRM WITH OFFICES IN HOUSTON AND MOSCOW M. D. SEIS IN TURN WILL CREATE THREE NEW COMPANIES D. G. SEIS OVERSEAS LIMITED SEISMIC TECHNOLOGY INCORPORATED AND M. D. SEIS GEOPHYSICAL COMPANY RUSSIA WHICH WILL RECORD AND PROCESS DATA USED TO LOCATE OIL RESERVES DIGICON SAID IT WILL OWN FIFTY PERCENT OF THE COMPANIES AND IT WILL ALSO PROVIDE UP TO THREE MILLION DOLLARS IN WORKING CAPITAL SMALL COMPANY STOCKS SENT A KEY INDEX TO ITS SIXTH HIGH IN AS MANY SESSIONS DESPITE WEAK EARNINGS FROM SEVERAL TECHNOLOGY LEADERS THAT PUMMELED THEIR SHARE PRICES THE RUSSELL TWO THOUSAND INDEX SET ITS SIXTH STRAIGHT RECORD CLOSE BUT WEAK EARNINGS FROM TECHNOLOGY CONCERNS PULLED THE NASDAQ COMPOSITE INDEX LOWER AFTER TUESDAY'S RECORD THE RUSSELL TWO THOUSAND INCHED UP ZERO POINT TWO POINT OR ZERO POINT ZERO EIGHT PERCENT TO END AT TWO HUNDRED SIXTY TWO POINT SIX A SIXTH STRAIGHT RECORD THE INDEX WHICH SHOWED LOSSES EARLIER IN THE DAY TRACKS THE PERFORMANCE OF SMALL CAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND OTHER MAJOR EXCHANGES BUT THE NASDAQ COMPOSITE INDEX WHICH IS HEAVILY WEIGHTED WITH LARGE TECHNOLOGY ISSUES DROPPED THREE POINT SEVEN FOUR POINTS OR ZERO POINT FOUR SEVEN PERCENT TO SEVEN HUNDRED EIGHTY NINE POINT TWO EIGHT AFTER SETTING A NEW HIGH TUESDAY AMONG THE STOCKS THAT FELL AFTER POSTING DISAPPOINTING RESULTS WERE INTEL DOWN FOUR AND THREE QUARTERS TO SIXTY TWO AND ONE HALF BORLAND INTERNATIONAL DOWN ONE AND ONE HALF TO THIRTEEN AND SEVEN EIGHTHS AND SYNOPTICS COMMUNICATIONS DOWN THREE AND ONE HALF TO TWENTY SEVEN AND THREE QUARTERS ADVANCING NASDAQ ISSUES TRAILED DECLINERS ONE THOUSAND FOUR HUNDRED SEVENTY SEVEN TO ONE THOUSAND FIVE HUNDRED FORTY TWO ON NASDAQ NATIONAL MARKET VOLUME OF TWO HUNDRED EIGHTY POINT NINE MILLION SHARES COMPARED WITH TUESDAY'S TWO HUNDRED SEVENTY FIVE POINT FOUR MILLION OVERALL VOLUME ROSE TO THREE HUNDRED THIRTY SIX POINT TWO MILLION SHARES FROM THE PREVIOUS DAY'S THREE HUNDRED NINETEEN POINT FOUR MILLION THE DOW JONES INDUSTRIAL AVERAGE CLIMBED FOURTEEN POINT OH EIGHT POINTS OR ZERO POINT THREE SIX PERCENT TO THREE THOUSAND EIGHT HUNDRED EIGHTY FOUR POINT THREE SEVEN PAST ITS MONDAY RECORD CLOSE YESTERDAY THE INDEX FINISHED UNCHANGED NEWS FROM INDIVIDUAL COMPANIES WAS THE BIGGEST IMPETUS BEHIND STOCK MOVEMENT AND EARNINGS REPORTS PROVIDED MUCH OF THE PUSH HAGGAR JUMPED FOUR TO THIRTY TWO AND ONE QUARTER FOLLOWING IMPROVED FISCAL FIRST QUARTER EARNINGS THE DALLAS DESIGNER AND MAKER OF MEN'S APPAREL SAID NET INCOME FOR THE PERIOD ROSE TO FIFTY ONE CENTS A SHARE FROM A YEAR EARLIER EIGHT CENTS A SHARE NUCLEAR SUPPORT SERVICES INCORPORATED ROSE SEVEN EIGHTHS TO FIVE AFTER REPORTING THAT FISCAL FIRST QUARTER EARNINGS ROSE TO THIRTEEN CENTS A SHARE FROM A YEAR EARLIER SIX CENTS A SHARE THE CAMPBELLTOWN PENNSYLVANIA COMPANY PROVIDES TECHNICAL PERSONNEL TO ELECTRIC UTILITIES TETRA TECH PASADENA CALIFORNIA IMPROVED ONE TO NINETEEN AND THREE QUARTERS THE PROVIDER OF ENVIRONMENTAL ENGINEERING AND CONSULTING SERVICES REPORTED FISCAL FIRST QUARTER PER SHARE EARNINGS OF SEVENTEEN CENTS UP FROM A YEAR EARLIER THIRTEEN CENTS BUT SANTA CRUZ OPERATION A SANTA CRUZ CALIFORNIA NETWORKING AND SOFTWARE CONCERN DROPPED THREE QUARTERS TO FIVE AND ONE EIGHTH AFTER SAYING LATE TUESDAY THAT ITS FISCAL FIRST QUARTER PER SHARE NET INCOME FELL TO FIVE CENTS FROM THIRTEEN CENTS GOLDMAN SACHS DOWNGRADED SANTA CRUZ TO QUOTE MARKET PERFORMER QUOTE FROM QUOTE MODERATE OUTPERFORMER QUOTE AND LOWERED ITS FISCAL NINETEEN NINETY FOUR EARNINGS ESTIMATE KERR GROUP LOS ANGELES JUMPED SEVEN EIGHTHS TO NINE AND ONE HALF ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID IT PLANS TO RELOCATE ITS HOMECANNING LID MANUFACTURING OPERATIONS TO JACKSON TENNESSEE PERMANENTLY CEASING OPERATIONS IN ITS LEASED FACILITY IN CHICAGO KERR SAID IT WILL RECORD A NINETEEN NINETY THREE FOURTH QUARTER RESERVE OF SEVENTY FIVE CENTS A SHARE RELATED TO THE RELOCATION IMPROVED EFFICIENCY DUE TO THE MOVE SHOULD RESULT IN PRETAX PER YEAR COST REDUCTIONS OF ABOUT FIFTY CENTS A SHARE ORTHOLOGIC GAINED ONE TO FIVE AND SEVEN EIGHTHS THE PHOENIX COMPANY SAID IT HAS RECEIVED AN APPROVABLE LETTER FROM THE FOOD AND DRUG ADMINISTRATION REGARDING ITS PREMARKET APPROVAL APPLICATION FOR ORTHOLOGIC ONE THOUSAND A NONINVASIVE ELECTRONIC BONE GROWTH STIMULATOR FOR TREATMENT OF FRACTURES DECKERS OUTDOOR CARPINTERIA CALIFORNIA CLIMBED TWO TO SEVENTEEN THE COMPANY SAID IT FORMED A JOINT VENTURE WITH ROBERT EASON OWNER OF THE U. S. DISTRIBUTION RIGHTS FOR HEIRLOOMS A LINE OF CASUAL APPAREL TO SELL THE LINE THROUGH DECKERS' DISTRIBUTION CHANNELS TERMS WEREN'T DISCLOSED SMITH BARNEY SHEARSON UPGRADED DECKERS TO OUTPERFORM FROM NEUTRAL RECOTON ADVANCED ONE AND ONE EIGHTH TO TWENTY FOUR AND THREE EIGHTHS FOLLOWING AN INITIAL BUY RECOMMENDATION FROM FURMAN SELZ THE LONG ISLAND CITY N. Y. COMPANY MAKES AND MARKETS A LINE OF ACCESSORIES FOR CONSUMER ELECTRONICS EQUIPMENT TRANS LEASING INTERNATIONAL FELL ONE AND THREE SIXTEENTHS TO FOUR AND THREE SIXTEENTHS AFTER SAYING ITS TALKS ENDED ON A PROPOSED BUSINESS COMBINATION WITH AN UNIDENTIFIED PUBLICLY TRADED FINANCIAL SERVICES COMPANY TRANS LEASING NORTHBROOK ILLINOIS LEASES MEDICAL SCIENTIFIC AND OTHER EQUIPMENT TO HEALTH CARE PROVIDERS LCS INDUSTRIES GAINED ONE TO EIGHT THE CLIFTON N. J. COMPANY SAID IT REACHED A FIVE POINT FIVE MILLION DOLLAR AGREEMENT TO DESIGN DEVELOP AND IMPLEMENT A MARKETING DATABASE FOR A MAJOR NON U. S. TELECOMMUNICATIONS COMPANY EXTENDING THROUGH FEBRUARY NINETEEN NINETY FIVE NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED ONE HUNDRED SIX WHILE EIGHTEEN HIT NEW LOWS EXPECTATIONS OF GOOD EARNINGS FOR SMALLER ISSUES HELPED THEM TO ADVANCE AS DID THE BIG BOARD'S LATE MOVE INTO RECORD TERRITORY SAID PAUL STANTON HEAD OF OVER THE COUNTER TRADING AT JOHNSON LEMON MARY FARRELL A MARKET STRATEGIST AT PAINEWEBBER ADDED THAT MARKET PLAYERS ARE BEGINNING TO TAKE MUCH MORE OF A CASE BY CASE APPROACH TO INVESTING RATHER THAN LETTING BIGGER STOCKS DICTATE ATTITUDES TOWARD AN ENTIRE GROUP IN PAST QUARTERS FARRELL SAID ONE EARNINGS DISASTER IN A GROUP COULD HUMBLE THE WHOLE SECTOR HOWEVER IF YOU LOOK AT THE COMPANIES THAT GOT HIT TODAY SUCH AS INTEL INCREASINGLY AS THE LARGE CAP STOCKS FALL BY THE WAYSIDE THE SMALL CAPS LOOK BETTER EARNINGS FORECASTS FOR SMALLER COMPANIES HAVE BEEN MORE MODEST FARRELL SAID WHILE WALL STREET HAS HAD VERY HIGH EXPECTATIONS FOR THE LARGER COMPANIES BECAUSE OF THE ECONOMIC RECOVERY THE COMBINATION OF STRONG EARNINGS GROWTH WITHOUT TREMENDOUS PRICE TO EARNINGS EXPANSION SHOULD KEEP THE SMALLER ISSUES THAT SHOW SUPERIOR EARNINGS GROWTH AHEAD OF THE GAME THIS YEAR FARRELL SAID KERR GROUP INCORPORATED OF LOS ANGELES EXPECTS ITS NET INCOME TO BE BOOSTED BY ABOUT FIFTY CENTS A SHARE PER YEAR THROUGH NINETEEN NINETY SIX BECAUSE OF COST REDUCTIONS FROM THE COMPANY'S RELOCATION OF ITS HOME CANNING LID MANUFACTURING OPERATIONS FROM CHICAGO TO A NEW FACILITY IN JACKSON TENNESSEE IN THURSDAY'S SMALL STOCK FOCUS COLUMN IT WAS INCORRECTLY REPORTED THAT THE FIFTY CENT ASHARE BOOST WOULD BE ON A PRETAX BASIS GERMANY'S BIG METAL WORKERS UNION THREATENED WIDESPREAD WALKOUTS IF EMPLOYERS CONTINUED TO INSIST ON LOWER LABOR COSTS IN DEADLOCKED TALKS I. G. METALL'S CONTRACT WITH EMPLOYERS EXPIRED DECEMBER THIRTY FIRST IN NEGOTIATIONS APPLYING TO MOST OF GERMANY'S THREE POINT EIGHT MILLION METAL WORKERS THE GESAMTMETALL EMPLOYERS GROUP REJECTED UNION DEMANDS FOR A SIX PERCENT WAGE INCREASE OR TWO PERCENT WITH JOB GUARANTEES GESAMTMETALL WANTS TO SECURE JOBS BY CUTTING COSTS THROUGH WAGE FREEZES MORE FLEXIBLE SHIFTS AND CUTS IN VACATION DAYS AND BONUSES THE UNION VOWED TO STRIKE ONCE THE GRACE PERIOD FOR THE TALKS EXPIRES JANUARY TWENTY EIGHTH BUT ANALYSTS TERMED THE UNION WARNING HOLLOW GIVEN GERMANY'S WORSENING UNEMPLOYMENT AND ITS AILING AUTOMOTIVE AND MACHINERY SECTORS AS WELL AS THE CHEMICAL WORKERS UNION'S AGREEMENT THIS MONTH TO A SUB INFLATION TWO PERCENT WAGE INCREASE FOR NINETEEN NINETY FOUR CHANCELLOR HELMUT KOHL WAS SAID TO BACK A WAGE FREEZE FOR MILLIONS OF GERMAN PUBLIC SERVANTS WHOSE OETV UNION WILL SEEK A FOUR PERCENT RAISE IN TALKS THAT START TOMORROW IN THE CZECH REPUBLIC'S FIRST MAJOR CASE OF COMPUTER FRAUD AN EMPLOYEE OF THE CZECH SAVINGS BANK IN SOKOLOV WAS CONVICTED OF STEALING ABOUT ONE POINT TWO MILLION DOLLARS AND SENTENCED TO EIGHT YEARS IN PRISON A CZECH NEWSPAPER REPORTED MARTIN JANKU APPEALED SAYING HE ONLY MEANT TO EXPOSE THE BANK'S INADEQUATE SECURITY SYSTEM AFTER MOVING THE MONEY BY COMPUTER TO HIS OWN ACCOUNT IN THE BANK OVER NINE MONTHS HE WAS DETAINED WHEN HE TRIED TO MAKE A BIG WITHDRAWAL FROM A BRANCH AND WAS RECOGNIZED BY A TELLER WHO HAD MET HIM IN COMPUTER TRAINING HE RETURNED ONE MILLION DOLLARS BUT SAID ONE HUNDRED SIXTY SIX THOUSAND SIX HUNDRED SIXTY SIX DOLLARS WAS STOLEN FROM HIS CAR CITING CUTS IN RUSSIAN GOVERNMENT GRANTS THE MOSCOW LAB THAT HAS PRESERVED LENIN'S BODY FOR SEVENTY YEARS IS OFFERING COMMERCIAL MORTUARY SERVICES INCLUDING MUMMIFICATION IN A VENTURE WITH AN UNDERTAKER THE CENTER FOR BIOLOGICAL STRUCTURES WILL PERFORM LONG TERM EMBALMING A SIX MONTH JOB FOR AT LEAST TWO HUNDRED FIFTY THOUSAND DOLLARS A BREATHTAKING SUM IN RUSSIA EVEN WITH THE CENTER'S FULL GUARANTEE AND POST SALE INSPECTIONS EVERY TWO YEARS FORMER CLIENTS INCLUDED NOTABLE COMMUNISTS SUCH AS HO CHI MINH OF NORTH VIETNAM NOW THE CENTER SEES ITS MARKET AS QUOTE RICH PEOPLE IN THE WEST AND THE U. S. WHO WOULD LIKE TO PRESERVE THEMSELVES FOR THE FUTURE QUOTE THE CHAIRMAN OF THE ITALIAN STATE OWNED ELECTRIC UTILITY ENTE NAZIONALE PER L'ENERGIA ELETTRICA FRANCO VIEZZOLI WAS ARRESTED IN A CRACKDOWN ON MOB INFILTRATION OF CONSTRUCTION PROJECTS IN THE SOUTHERN REGION OF CALABRIA THE COMPANY KNOWN AS ENEL IS ONE OF THE LARGEST IMPLICATED IN ITALY'S INVESTIGATION OF ORGANIZED CRIME MR. VIEZZOLI WAS DETAINED IN ROME IN CONNECTION WITH ALLEGED RIGGING OF BIDS FOR A POWER PLANT AND THIRTY OTHER PEOPLE WERE ARRESTED INCLUDING ENEL OFFICIALS AND SUSPECTED UNDERWORLD FIGURES THE EUROPEAN UNION COMMISSION ADOPTED GUIDELINES FOR ENERGY INVESTMENT THROUGH THE YEAR TWO THOUSAND AIMED AT EXPANDING OR IMPROVING DISTRIBUTION OF ELECTRICITY AND NATURAL GAS THROUGHOUT THE TWELVE COUNTRY BLOC THE E. U. FORMERLY CALLED THE EUROPEAN COMMUNITY IS TRYING TO IMPROVE COMPETITIVENESS AND EMPLOYMENT IN THE ENERGY SECTOR AMONG PRIORITIES THE COMMISSION SAID SPENDING SHOULD FOCUS ON CONNECTIONS OF ISOLATED ELECTRICITY NETWORKS AND LINKS AMONG E. U. AND NON E. U. GRIDS IT ALSO CALLED FOR DELIVERING GAS TO UNSERVED REGIONS AND EXPANDING PIPELINE CAPACITIES SPENDING ON BASIC PUBLIC WORKS PROJECTS IN MEXICO THIS YEAR WILL TOTAL ABOUT SIXTEEN BILLION DOLLARS UP TWENTY PERCENT FROM LAST YEAR'S OUTLAYS THE INFRASTRUCTURE TOTAL INCLUDES ELEVEN POINT ONE FIVE BILLION DOLLARS IN PRIVATE INVESTMENT A SEVENTEEN PERCENT INCREASE FROM NINETEEN NINETY THREE AND GOVERNMENT SPENDING OF FOUR POINT EIGHT SEVEN BILLION DOLLARS UP TWENTY FOUR PERCENT OF THE PRIVATE SUM FORTY PERCENT WILL BE INVESTED IN TERMINALS BUSES AND CARGO TRUCKS OTHER PLANS INCLUDE NEW TOLL HIGHWAYS SEAPORT INSTALLATIONS AND IMPROVEMENTS IN AIRPORTS RAILWAYS AND TELECOMMUNICATIONS HIGHWAYS WILL GET ALMOST TWO THIRDS OF THE PUBLIC WORKS FUNDING TO MEET THIS YEAR'S ROAD BUILDING GOAL OF ONE THOUSAND FOUR HUNDRED EIGHTY EIGHT MILES THE GOVERNMENT ALSO UNVEILED A MARCH BOND ISSUE OF FIVE HUNDRED MILLION DOLLARS FOR INTERNATIONAL INVESTORS WITH PROCEEDS TO FINANCE MORE HIGHWAY WORK SWEDEN SAID THE NUMBER OF BUSINESS BANKRUPTCIES LAST YEAR DECREASED TWELVE PERCENT TO EIGHTEEN THOUSAND SEVEN HUNDRED THIRTY ONE FROM A YEAR EARLIER THE TOTAL REPRESENTS ONE FAILURE FOR EVERY TWENTY SIX SWEDISH COMPANIES SECTORS HIT HARDEST WERE RESTAURANTS HOTELS REAL ESTATE AND CONSTRUCTION AN AIRPORT UPGRADE TO MEET GLOBAL STANDARDS AND AN INTERNATIONAL COMMERCIAL CENTER ARE PLANNED FOR BACAU ROMANIA ONE HUNDRED EIGHTY FIVE MILES NORTHEAST OF BUCHAREST GREAT WALL INDUSTRIAL CORPORATION OF CHINA IS THE GENERAL CONTRACTOR ON THE THREE HUNDRED THIRTY MILLION DOLLAR PROJECT WHICH COULD GENERATE TWELVE THOUSAND JOBS THE FEDERAL COMMUNICATIONS COMMISSION PROPOSED RULES THAT CALL FOR LOW ORBITING SATELLITES TO PROVIDE WORLD WIDE DATA AND TELEPHONE SERVICE THROUGH HAND HELD DEVICES THE F. C. C.'S CHOICE FAVORED FIVE OF THE SIX COMPANIES THAT HAD APPLIED TO PROVIDE THE NEW SERVICE THEY ARE IRIDIUM INCORPORATED A WASHINGTON BASED INTERNATIONAL CONSORTIUM OF COMPANIES LED BY MOTOROLA INCORPORATED OF SCHAUMBURG ILLINOIS A UNIT OF CLEVELAND BASED T. R. W. INCORPORATED LORAL QUALCOMM SATELLITE SERVICES INCORPORATED SEABROOK MARYLAND AND ELLIPSAT CORPORATION AND CONSTELLATION COMMUNICATIONS INCORPORATED BOTH BASED IN WASHINGTON D. C. THE COMMISSION'S DECISION WAS A BLOW TO THE SIXTH COMPANY AMERICAN MOBILE SATELLITE CORPORATION OF RESTON VIRGINIA WHICH PROPOSED USING A STATIONARY SATELLITE FOR THE SYSTEM THE COMPANY WHICH WAS PREVIOUSLY AWARDED RADIO SPECTRUM FOR SATELLITE SERVICES IS OWNED BY MCCAW CELLULAR COUMMUNICATIONS INCORPORATED GENERAL MOTORS CORPORATION'S HUGHES COMMUNICATIONS INCORPORATED AND PAGING GIANT MTEL CORPORATION COMMISSION OFFICIALS COMPARED THE NEW SYSTEM TO A GLOBAL CELLULAR PHONE SYSTEM THAT COULD REACH ANYWHERE AND PROVIDE SUCH SERVICES AS DISASTER MANAGEMENT AND ENVIRONMENTAL MONITORING AS WELL AS PAGING FACSIMILE TRANSMISSION AND CARGO TRACKING BY ITS ACTION THE AGENCY DECIDED TO USE SATELLITES THAT WILL ORBIT THE EARTH AT A LOW ALTITUDE OF ABOUT SIX HUNDRED MILES MOST COMMERCIAL COMMUNICATIONS SATELLITES CURRENTLY IN USE ARE IN FIXED POSITIONS ABOUT TWENTY TWO THOUSAND MILES FROM THE EARTH THE F. C. C. WILL TAKE PUBLIC COMMENTS ON THE PROPOSED RULES UNTIL MAY FIFTH AND WILL THEN ISSUE FINAL TECHNICAL FINANCIAL AND CONSTRUCTION REQUIREMENTS THE COMMISSION SAID IT EXPECTS TO LICENSE AT LEAST TWO SYSTEMS WHICH WOULD HAVE TO MEET THOSE REQUIREMENTS THE PROPOSED RULES ALSO INCLUDED SUGGESTED WAYS OF APPORTIONING THE RADIO SPECTRUM FOR COMPANIES TO OFFER THESE SERVICES THE MOBILE SATELLITE SYSTEMS ARE EXPECTED TO BECOME PART OF THE NATIONAL INFORMATION SUPERHIGHWAY IN THE U. S. THE F. C. C. SAID THE NEW SYSTEM WHICH WOULD INTERCONNECT WITH LAND BASED TELEPHONE AND CELLULAR SYSTEMS WOULD ENHANCE COMPETITION IN CURRENT CELLULAR TELEPHONE MARKETS COMMISSION OFFICIALS ALSO PREDICTED THEY WOULD GIVE AMERICANS IN RURAL AREAS THAT AREN'T LINKED TO A BROAD COMMUNICATIONS INFRASTRUCTURE ACCESS TO ONE QUOTE SYSTEMS LIKE IRIDIUM'S WILL BRING COMMUNICATIONS TO PLACES WHERE COMMUNICATIONS NEVER EXISTED BEFORE ALLOWING COUNTRIES TO LEAPFROG INTO THE TWENTY FIRST CENTURY QUOTE SAID JOHN WINDOLPH A SPOKESMAN FOR MOTOROLA ALTHOUGH MOBILE SATELLITE SYSTEMS WILL MAKE EVERYTHING FROM TELEPHONE SERVICE TO BUSINESS COMMUNICATIONS SERVICES AVAILABLE IN OTHER COUNTRIES THEY'LL REQUIRE THE U. S. TO COORDINATE WITH OTHER COUNTRIES ON WHAT THEY WANT LICENSED WITHIN THEIR BORDERS CITICORP NAMED PEI YUAN CHIA FIFTY FOUR YEARS OLD A VICE CHAIRMAN OF THE BANKING COMPANY BRINGING THE NUMBER OF VICE CHAIRMEN TO FOUR THE MOVE WAS NOT SURPRISING GIVEN MR. CHIA'S ROLE AS THE BANK'S SENIOR EXECUTIVE RESPONSIBLE FOR CONSUMER BANKING MR. CHIA A DIRECTOR OF CITICORP AND CITIBANK SINCE APRIL NINETEEN NINETY THREE IS ONE OF SIX MEMBERS OF THE MANAGEMENT COMMITTEE THE COMPANY'S SENIOR POLICY BODY HE HAS BEEN WITH THE COMPANY FOR TWENTY YEARS AND WAS ONE OF A GROUP OF MARKETING EXECUTIVES HIRED FROM GENERAL FOODS CORPORATION TO HELP BUILD A CONSUMER SLASH CREDIT CARD OPERATION THE HONG KONG NATIVE WHO COMES FROM A PROMINENT SHANGHAI BANKING FAMILY HAS OVERSIGHT RESPONSIBILITY FOR CITIBANK'S GLOBAL CONSUMER BUSINESSES IN MORE THAN FORTY COUNTRIES AND FOR CITIBANK'S CORPORATE BANKING ACTIVITIES IN ASIA CITICORP SAID MR. CHIA EARNED HIS BACHELOR'S DEGREE IN ECONOMICS FROM TAIWAN'S TUNGHAI UNIVERSITY AND A MASTER'S IN BUSINESS ADMINISTRATION FROM THE WHARTON SCHOOL UNIVERSITY OF PENNSYLVANIA RICHARD S. BIRNBAUM FORTY YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF OPERATIONS AND MARKETING MR. BIRNBAUM FORMERLY SENIOR VICE PRESIDENT MARKETING SUCCEEDS BERNARD W. ANDREWS FIFTY TWO WHO LEFT TO BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF MONTGOMERY WARD AND COMPANY'S FLAGSHIP RETAIL DIVISION WHEN HOSPITAL EXECUTIVES WANT COST CUTTING ADVICE THEY INCREASINGLY TURN TO THE CONSULTING FIRM OF APM INCORPORATED BUT TO MANY NURSES APM IS AN ENEMY AT ISSUE IS ONE OF APM'S MOST FREQUENT RECOMMENDATIONS THAT HOSPITALS CHANGE THEIR QUOTE NURSING SKILLS MIX QUOTE TO RELY LESS ON HIGHER PAID AND BETTER TRAINED NURSES AND MORE ON LOWER PAID AIDES TO PERFORM ROUTINE TASKS APM CLAIMS IT CAN SAVE MONEY WITHOUT AFFECTING PATIENT CARE MANY NURSES DISAGREE WE VIEW APM AS THE NEMESIS OF HEALTH CARE SAYS ROSE ANN DEMORO PRESIDENT OF THE CALIFORNIA NURSES ASSOCIATION THEY'RE OUT SELLING COST SAVINGS MODELS THAT HAVE BEEN USED IN THE INDUSTRIAL SECTOR THE PROBLEM IS THEY LOOK AT THE PATIENT AS A BUNCH OF PARTS RATHER THAN AS A WHOLE HUMAN BEING APM CALLS THE CRITICISM UNFAIR IF DONE PROPERLY DECREASING RELIANCE ON NURSES SHOULDN'T HURT PATIENT CARE SAYS JAMES KAGEN MANAGING PARTNER OF APM'S NEW YORK OFFICE THIS IS A TOUGH ISSUE HE CONCEDES WE ARE TAKING OUT LAYERS AND WE GET NOISE FROM PEOPLE ABOUT IT BUT IF YOU DON'T HAVE NOISE YOU AREN'T DOING THE JOB QUOTE THE SHOWDOWN TYPIFIES THE TURMOIL ASSOCIATED WITH HOSPITALS' EFFICIENCY CAMPAIGNS MANY OF AMERICA'S FIVE THOUSAND THREE HUNDRED HOSPITALS SAY THEY MUST TRIM EXPENSES AS THEY LOSE BUSINESS TO OUTPATIENT SERVICES AND COPE WITH INSURERS' DEMANDS FOR DISCOUNTS TO HOSPITALS' PRICES BUT COST CUTTING CAN BRING LABOR CLASHES AND A HAIL OF QUESTIONS ABOUT WHETHER PATIENT CARE IS AT RISK THE AMERICAN NURSES ASSOCIATION SAYS RECENT STUDIES HAVE FOUND THAT PATIENTS FARE BEST AT HOSPITALS WITH THE MOST NURSES SUGGESTING THAT CARE MIGHT SUFFER IF NURSES' JOBS ARE CUT BUT MR. KAGEN SAYS THAT FACILITIES IMPLEMENTING APM'S CUTS USUALLY SEE IMPROVEMENTS IN SUCH QUALITY MEASURES AS WAITING TIMES OR PATIENT SATISFACTION HE SAYS MOST JOBS CAN BE CUT THROUGH ATTRITION WITHOUT LAYOFFS BASED IN NEW YORK APM HAS BECOME ONE OF THE HEAVYWEIGHTS IN THE CROWDED HOSPITAL CONSULTING FIELD SINCE NINETEEN EIGHTY SEVEN APM SAYS IT HAS HELPED MORE THAN EIGHTY HOSPITALS TRIM A TOTAL OF AT LEAST ONE BILLION DOLLARS IN EXPENSES TYPICALLY AN APM CONSULTING TEAM SPENDS NINE MONTHS OR SO AT A HOSPITAL DEVELOPING COST CUTTING RECOMMENDATIONS IN AREAS RANGING FROM BILL COLLECTING TO COMPUTER OPERATIONS APM'S BIGGEST TARGET IS USUALLY LABOR COSTS NOTABLY NURSING AT MANY HOSPITALS SEVENTY FIVE PERCENT OR MORE OF PATIENT CARE IS PROVIDED BY REGISTERED NURSES WHO HAVE AT LEAST TWO TO FOUR YEARS OF TRAINING THEY MAKE APPRECIABLY MORE THAN LICENSED PRACTICAL NURSES WHO GENERALLY HAVE TWELVE TO FOURTEEN MONTHS OF TRAINING AND OFTEN MAKE DOUBLE THE PAY OF UNLICENSED AIDES OR ORDERLIES BECAUSE OF THE COST DIFFERENTIALS APM ADVISES HOSPITALS TO REDESIGN WORK TEAMS TO RELY MORE ON LOWER PAID AIDES FOR SIMPLE DUTIES LIKE MAKING BEDS THIS WORKPLACE RE ENGINEERING CAN MEAN BIG SAVINGS IN CALIFORNIA HOSPITALS CAN SAVE AS MUCH AS TWENTY FIVE THOUSAND DOLLARS A YEAR FOR EACH NURSE'S JOB CONVERTED TO AN AIDE'S JOB STANFORD UNIVERSITY HOSPITAL IN CALIFORNIA ESTIMATES THAT IT HAS SAVED TWENTY FIVE MILLION DOLLARS IN NURSING COSTS SINCE IT HIRED APM IN NINETEEN EIGHTY NINE SHARON FLYNN HOLLANDER DIRECTOR OF NURSING SAYS THAT BEFORE APM SHOWED UP EIGHTY PERCENT TO NINETY PERCENT OF THE HOSPITAL'S PATIENT CARE EMPLOYEES WERE NURSES THE FIGURE IS NOW LESS THAN SIXTY PERCENT SHE SAYS AT MANY HOSPITALS NURSES' TIME CAN BE CHEWED UP BY SUCH LOW SKILL JOBS AS GIVING BATHS OR FEEDING PATIENTS APM SAYS IT ADVOCATES PUTTING FEWER NURSES ON A PATIENT WARD AND HAVING THEM FOCUS ON HIGH SKILL CARE SUCH AS INSERTING CATHETERS OR ADMINISTERING DRUGS LOW SKILL TASKS WOULD BE SWITCHED TO UNLICENSED AIDES UNDER THE NURSES' SUPERVISION USING THIS TEAM APPROACH VANDERBILT UNIVERSITY HOSPITAL IN NASHVILLE TENNESSEE CUT ITS NURSING STAFF BY TWENTY ONE PERCENT TO SIX HUNDRED TWENTY SEVEN FULL TIME JOBS IN THE PAST FIVE YEARS IT HAS HIRED DOZENS OF PATIENT CARE ASSISTANTS TYPICALLY HIGH SCHOOL GRADUATES WHO HAVE WORKED IN A HOSPITAL AFTER SEVERAL WEEKS OF TRAINING THEY ARE ASSIGNED SIMPLE DUTIES CHANGES LIKE THESE LET NURSES SPEND MORE TIME DOING WHAT THEY ARE TRAINED BEST TO DO SAYS MR. KAGEN A LOT OF OUR RE ENGINEERING COMES ABOUT BECAUSE WE ASK NURSES WHAT THEY WANT BUT SOME NURSING GROUPS SAY EVEN BASIC TASKS SHOULDN'T BE ASSIGNED TO UNLICENSED HELP WHEN YOU'RE GIVING A BATH TO A PATIENT YOU CAN CHECK THEIR SKIN FOR ULCERS OR SEE IF THEY ARE DEHYDRATED SAYS MARGARET BERRY PRESIDENT OF THE MASSACHUSETTS NURSES ASSOCIATION THAT'S WHERE CLINICAL JUDGMENTS ARE MADE YOU CAN'T JUST HAVE AN R. N. GO IN TO SPEND TWO MINUTES WITH A PATIENT AND MAKE AN ASSESSMENT QUOTE IN BOSTON CARNEY HOSPITAL HIRED APM IN NINETEEN NINETY TWO TO CREATE A COST CUTTING PROGRAM USING THE TEAM APPROACH BUT DELAYED CHANGES AFTER NURSES PROTESTED EILEEN NORTON A NURSE AT CARNEY SAYS SHE WAS CONCERNED ABOUT PATIENT CARE BUT ADDS IT'S ALSO ABOUT JOBS MORE CONTROVERSY MAY LIE AHEAD AS SOME HOSPITALS TRY TO EXPAND THE WORK THAT LOWER PAID AIDES CAN PERFORM AMONG THOSE TASKS ARE DRAWING BLOOD GATHERING DATA FOR MEDICAL CHARTS OR BANDAGING INCISIONS AFTER SURGERY DUTIES THAT NURSES MAY NOT WANT TO LEAVE IN THE HANDS OF LESS TRAINED PERSONNEL WE'VE LEARNED THAT GOING VERY SLOWLY WORKED WELL SAYS MARY BOOSALIS SENIOR VICE PRESIDENT OPERATIONS AT MIAMI VALLEY HOSPITAL IN DAYTON OHIO HER HOSPITAL HAS BEEN PHASING IN SKILL MIX CHANGES FOR TWO YEARS AND EXPECTS TO FINISH THIS SUMMER THERE'S A MASSIVE AMOUNT OF EDUCATION INVOLVED MS. BOOSALIS SAYS MUTUAL OF NEW YORK SAID ITS BOARD ELECTED SAMUEL J. FOTI PRESIDENT AND CHIEF OPERATING OFFICER SINCE NINETEEN NINETY ONE MR. FOTI HAS BEEN EXECUTIVE VICE PRESIDENT AND HEAD OF MONY'S INSURANCE OPERATIONS HE WAS ELECTED TO THE COMPANY'S BOARD OF TRUSTEES IN NINETEEN NINETY THREE MR. FOTI WAS NAMED SENIOR VICE PRESIDENT IN MAY NINETEEN EIGHTY NINE AND CHIEF MARKETING OFFICER SOON AFTER HE JOINED MONY IN NINETEEN EIGHTY EIGHT AS NATIONAL DIRECTOR OF AGENCY OPERATIONS FROM NINETEEN SEVENTY FOUR TO NINETEEN EIGHTY EIGHT MR. FOTI WAS WITH METROPOLITAN LIFE INSURANCE COMPANY MR. FOTI WILL BE RESPONSIBLE FOR MONY'S LIFE INSURANCE DISABILITY INCOME AND ASSET ACCUMULATION BUSINESSES CORPORATE STRATEGY AND A NEW INTERNATIONAL DEVELOPMENT AND OPERATIONS BUSINESS DELBERT W. JOHNSON CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PIONEER METAL FINISHING COMPANY A DIVISION OF SAFEGUARD SCIENTIFICS INCORPORATED WAS NAMED A DIRECTOR OF THIS REGIONAL BANK HOLDING COMPANY INCREASING THE BOARD TO SEVENTEEN MEMBERS C. R. BARD INCORPORATED ON ITS WAY TO RESOLVING REMAINING FOOD AND DRUG ADMINISTRATION SANCTIONS STEMMING FROM PROBLEMS WITH ITS HEART SURGERY INSTRUMENTS SAID THE F. D. A. WANTS NEW INTERNAL AUDITS OF CERTAIN MEDICAL PRODUCT APPLICATIONS ONLY AFTER THE INTERNAL REVIEW WILL THE F. D. A. CONSIDER THE PENDING APPROVALS OF PRODUCTS MADE BY BARD'S USCI DIVISION THE COMPANY SAID THE USCI DIVISION MAKES THE BALLOON ANGIOPLASTY DEVICES WIRES WITH BALLOON LIKE TOPS USED TO OPEN CLOGGED ARTERIES BARD AGREED IN OCTOBER TO PAY SIXTY ONE MILLION DOLLARS TO SETTLE CRIMINAL CHARGES RELATED TO THE SALE OF DEFECTIVE HEART CATHETERS AMONG OTHER ALLEGATIONS BARD WAS CHARGED WITH MAKING FALSE STATEMENTS TO REGULATORS ABOUT THE SAFETY OF ITS PRODUCTS BARD'S CHIEF FINANCIAL OFFICER WILLIAM C. BOPP SAID THE COMPANY MUST ENSURE THAT INFORMATION IN USCI'S APPLICATIONS ACCURATELY REFLECTS THE COMPANY'S DATA THE AUDIT WILL APPLY TO SEVERAL BALLOON ANGIOPLASTY CATHETERS AND RELATED PRODUCTS AND SHOULD TAKE LESS THAN SIXTY DAYS HE SAID THE DELAY HE ADDED SHOULDN'T MATERIALLY AFFECT THE COMPANY'S EARNINGS THIS YEAR OR NEXT NOTING THAT THE F. D. A. APPROVED TWO NEW BARD HEART CATHETERS THIS MONTH ANALYSTS FREDERICK A. WISE OF BEAR STEARNS AND COMPANY AND DAVID LOTHSON OF PAINEWEBBER COMPANY AGREED THAT THE LATEST ACTION SHOULDN'T SIGNIFICANTLY HURT THE COMPANY'S OUTLOOK IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY BARD'S SHARES CLOSED AT TWENTY NINE DOLLARS AND FIFTY CENTS OFF EIGHTY SEVEN POINT FIVE CENTS FORD MOTOR COMPANY UNVEILED A HIGH TECH FRONT DRIVE TRANSMISSION MOVING CLOSER TO SOLVING ONE OF ITS PROFITABILITY PROBLEMS THE TRANSMISSION WILL BE USED IN CERTAIN FORD TAURUS AND MERCURY SABLE MODELS AND IN THE NEXT GENERATION LINCOLN CONTINENTAL THE A X. FOUR N. TRANSMISSION WHICH COST SIX HUNDRED EIGHTY MILLION DOLLARS TO DEVELOP INCLUDING COSTS OF RETOOLING THE FACTORY HERE WILL APPEAR IN VEHICLES LATER THIS YEAR AND FORD WILL EVENTUALLY BUILD FIVE HUNDRED FIFTY THOUSAND OF THEM A YEAR THE TRANSMISSION IS PART OF A FIVE BILLION DOLLAR OVERHAUL LAUNCHED IN NINETEEN EIGHTY NINE THE REVAMPING INVOLVES FIVE ENGINES AND FIVE TRANSMISSIONS INCLUDING A NEW TWO POINT FIVE LITER V. SIX TO BE UNVEILED NEXT MONTH AND A FAMILY OF TRUCK ENGINES TO DEBUT NEXT YEAR FORD HAS BEEN ONE OF THE LAST OF THE WORLD'S MAJOR AUTO MAKERS TO OVERHAUL ITS ENGINES AND TRANSMISSIONS AND INDUSTRY ANALYSTS AND CONSULTANTS SAY THAT'S ONE REASON FORD HAS HAD TO SPEND MUCH MORE THAN ITS RIVALS ON MARKETING ITS CARS QUOTE IN THE NINETEEN EIGHTIES FORD WASN'T VERY RIGOROUS IN INVESTING IN POWERTRAINS AND THEY BEGAN TO FALL BEHIND QUOTE SAYS CHRISTOPHER CEDERGREN AUTOPACIFIC GROUP INCORPORATED'S AUTO ANALYST IT HURT THEIR CREDIBILITY AND IMAGE IN CERTAIN PRODUCT LINES BUT THE NEW ENGINES AND TRANSMISSIONS ARE EXPECTED TO CHANGE ALL THAT INDUSTRY EXPERTS SAY BY THE END OF THE DECADE THEIR POWERTRAINS WILL BE AT PARITY WITH THE BEST IN THE INDUSTRY SAYS JEFF SINCLAIR A MCKINSEY AND COMPANY CONSULTANT TO THE AUTO INDUSTRY HE SAYS THIS WILL ALLOW FORD TO CUT BACK ON PROMOTION EXPENSES AND REAP HIGHER REVENUES PER VEHICLE FORD'S AUTOMATIC TRANSMISSIONS PARTICULARLY HAVE BEEN A WEAK SPOT THEY TENDED TO BE CLUNKY LOUD AND JERKY WHEN SHIFTING SOME INDUSTRY EXPERTS RATE FORD'S POWERTRAINS AMONG THE WORST IN THE INDUSTRY THE FEDERAL RESERVE BANK OF NEW YORK ELECTED J. WILLIAM JOHNSON AND SANDRA FELDMAN TO SERVE THREE YEAR TERMS ON THE NINE MEMBER BOARD OF THIS BANK THE NEW YORK ARM OF THE NATION'S CENTRAL BANK MR. JOHNSON FIFTY TWO YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FIRST NATIONAL BANK OF LONG ISLAND IN GLEN HEAD N. Y. MS. FELDMAN FIFTY FOUR IS PRESIDENT OF THE UNITED FEDERATION OF TEACHERS IN NEW YORK THEY WERE ELECTED BY THE MEMBER BANKS IN THE SECOND FEDERAL RESERVE DISTRICT TO SERVE THROUGH DECEMBER THIRTY FIRST NINETEEN NINETY SIX MR. JOHNSON SUCCEEDS BARBARA HARDING CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE PHILLIPSBURG NATIONAL BANK AND TRUST COMPANY IN PHILLIPSBURG N. J. MS. FELDMAN SUCCEEDS RAND V. ARASKOG CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF I. T. T. CORPORATION MR. JOHNSON WILL SERVE AS A CLASS A DIRECTOR REPRESENTING THE BANKING COMMUNITY AND MS. FELDMAN A CLASS B. DIRECTOR REPRESENTING THE GENERAL PUBLIC SEPARATELY MAURICE R. GREENBERG SIXTY EIGHT WAS NAMED CHAIRMAN FOR NINETEEN NINETY FOUR BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MR. GREENBERG CHAIRMAN OF AMERICAN INTERNATIONAL GROUP INCORPORATED IN NEW YORK SUCCEEDS ELLEN V. FUTTER WHO COMPLETED TWO THREE YEAR TERMS ON THE BOARD ALSO DAVID A. HAMBURG SIXTY EIGHT WAS APPOINTED BY THE BOARD OF GOVERNORS AS A CLASS C. DIRECTOR DOCTOR HAMBURG SUCCEEDS MS. FUTTER AS A DIRECTOR DOCTOR HAMBURG IS PRESIDENT OF CARNEGIE CORPORATION IN NEW YORK AND WILL SERVE A THREE YEAR TERM ON THE BOARD VOWING TO BECOME THE BEVERAGE LEADER OF EASTERN EUROPE BY THE TURN OF THE CENTURY PEPSI COLA INTERNATIONAL ANNOUNCED PLANS TO INVEST MORE THAN ONE HUNDRED FIFTEEN MILLION DOLLARS IN CZECH REPUBLIC AND SLOVAKIA OVER THE NEXT FIVE YEARS THE MOVE COMES IN THE WAKE OF SIMILAR EXPANSIONS THAT THE UNIT'S PARENT COMPANY PEPSICO INCORPORATED HAS LAUNCHED OVER RECENT YEARS IN POLAND HUNGARY AND PARTS OF RUSSIA PUTTING THE COMPANY'S TOTAL COMMITMENT TO THE REGION AT WELL OVER ONE BILLION DOLLARS ABOUT HALF OF THE EIGHTY FIVE MILLION DOLLARS PEPSICO HAS EARMARKED FOR EXPANSION IN CZECH REPUBLIC WILL BE SPENT TO OVERHAUL A MANUFACTURING AND BOTTLING PLANT HERE WORK ON THE BUILDING BEGAN EARLY THIS MONTH AND IS EXPECTED TO BE COMPLETED BY YEAR END THE REST OF THE MONEY WILL GO TOWARD BUILDING A NEW SALES AND DISTRIBUTION NETWORK AND WILL INCLUDE THE HIRING AND TRAINING OF FIVE HUNDRED NEW EMPLOYEES IN SLOVAKIA PEPSICO SAID IT PLANS TO SPEND ABOUT THIRTY MILLION DOLLARS OVER FIVE YEARS MOST OF IT ON TWO HUNDRED NEW JOBS AND ON A NETWORK OF SIX REGIONAL DISTRIBUTION CENTERS AND WAREHOUSES JAMES R. PELTIER SIXTY THREE YEARS OLD WAS NAMED CHAIRMAN OF THIS BANK DOCTOR PELTIER AN ORAL AND MAXILLOFACIAL SURGEON SUCCEEDS HIS BROTHER DONALD L. PELTIER SIXTY SEVEN WHO IS RETIRING BUT WILL REMAIN A DIRECTOR MONDAY'S EARTHQUAKE DID ONLY MODEST DAMAGE TO STOCK PRICES OF COMPANIES DOING BUSINESS IN CALIFORNIA MARKET LORE SAYS THAT'S A GOOD OMEN WHEN A DEPRESSED STOCK GROUP NO LONGER PLUNGES ON BAD NEWS A RALLY IS AT HAND EVEN BEFORE THE QUAKE CALIFORNIA DEPENDENT STOCKS WERE ON THEIR KNEES THE GOLDEN STATE GOT HIT HARDER THAN MOST BY THE RECESSION OF NINETEEN NINETY TO NINETEEN NINETY ONE AND ITS ECONOMY STAYED FLABBY WHILE MOST OF THE COUNTRY GAINED STRENGTH BUT NOW SOME RESPECTED MARKET VETERANS SAY CALIFORNIA IS BEGINNING TO RECOVER AND INVESTORS SHOULD CONSIDER PUTTING SOME MONEY THERE QUOTE CALIFORNIA IS NOT DEAD FOREVER QUOTE SAYS JOHN ROGERS PRESIDENT OF ARIEL CAPITAL MANAGEMENT IN CHICAGO INVESTORS HAVE BEEN BEHAVING AS IF EVERYONE IS GOING TO FLEE AND LEAVE THE PLACE AN EMPTY BEACH THE CHICAGOAN'S FAVORITE CALIFORNIA STOCK IS LONGS DRUG STORES WHICH HAS A HEAVY CONCENTRATION OF STORES IN CALIFORNIA AND HAWAII LONGS HAS VERY GOOD LOCATIONS AND OWNS A LOT OF THE REAL ESTATE UNDER ITS STORES MR. ROGERS SAYS IT HAS A ROCK SOLID BALANCE SHEET WITH NO LONG TERM DEBT I'VE BEEN BUYING MORE AND MORE AS IT GETS CHEAPER AND CHEAPER THIS MONTH GOLDMAN SACHS ISSUED A MAJOR REPORT CALLED CALIFORNIA DREAMIN' SALOMON BROTHERS ISSUED ONE CALLED QUOTE CALIFORNIA IS TURNING QUOTE BOTH BROKERAGE HOUSES SAY THEY SEE EARLY SIGNS OF A RECOVERY THEY HINT THAT PEOPLE WHO AGREE CAN SCOOP UP BARGAINS BEFORE IT BECOMES OBVIOUS TO THE VAST HERD OF INVESTORS THAT CALIFORNIA IS MAKING A COMEBACK THE STOCKS THEY RECOMMEND AREN'T NECESSARILY BASED IN CALIFORNIA BUT DO GET A SIGNIFICANT PORTION OF THEIR REVENUE THERE ACCORDING TO GOLDMAN'S REPORT WRITTEN BY ABBY JOSEPH COHEN AND EDWARD F. MCKELVEY CALIFORNIA BASED RETAILERS ARE REPORTING AN UPTURN IN SALES AND SOME HOME BUILDERS AND SERVICE PROVIDERS SEE GLIMMERS OF IMPROVEMENT YET MOST BROAD BASED INDICATORS SHOW LITTLE LIFE YET SO CALIFORNIA INVESTMENTS ARE NOT FOR THE SHORT SIGHTED OR FAINT OF HEART NINE CALIFORNIA RECOVERY PLAYS MAKE GOLDMAN'S OFFICIAL RECOMMENDED LIST ALASKA AIR GROUP BASED IN SEATTLE GETS ABOUT HALF ITS REVENUE IN CALIFORNIA THE FIRM NOTES AND WE EXPECT AIR TRAVEL IN GENERAL TO STRENGTHEN IN NINETEEN NINETY FOUR AMONG RETAILERS GOLDMAN RECOMMENDS ROSS STORES GOOD GUYS AND UTAH BASED SMITH'S FOOD AND DRUG CENTERS IN BANKING GOLDMAN SAYS BANKAMERICA IS EXPECTED TO GENERATE EARNINGS GROWTH ON PAR WITH OTHER BANKS AND ABOVE THE S. AND P. FIVE HUNDRED YET TRADES AT A FORTY PERCENT DISCOUNT TO THE MARKET ON A P. SLASH E. BASIS GOLDMAN ALSO LIKES H. F. AHMANSON A SAVINGS AND LOAN THAT MAKES COMMERCIAL AS WELL AS RESIDENTIAL LOANS ROUNDING OUT GOLDMAN'S TOP PICKS ARE BUILDER KAUFMAN AND BROAD HOME REFINER ULTRAMAR BASED IN GREENWICH CONNECTICUT AND MINIMILL OPERATOR BIRMINGHAM STEEL OF BIRMINGHAM ALABAMA SALOMON'S REPORT BY DAVID HENSLEY AND DAVID SHULMAN POINTS TO A LITTLE NOTICED DROP OFF IN LAYOFF ANNOUNCEMENTS BY CALIFORNIA AEROSPACE CONTRACTORS SINCE APRIL IT ALSO CITES A SLEW OF OTHER ECONOMIC INDICATORS TO SUPPORT ITS CONTENTION THAT THE STATE WILL QUOTE EMERGE FROM ITS LONG RECESSION BY THE SECOND HALF OF NINETEEN NINETY FOUR QUOTE SALOMON SUGGESTS A BASKET OF SOME TWO DOZEN CALIFORNIA STOCKS TO CONSIDER ONLY TWO OF THEM BANKAMERICA AND ENERGY PRODUCER UNOCAL MAKE THE FIRM'S OFFICIAL RECOMMENDED LIST AMONG SALOMON'S OTHER BUY RATED STOCKS THAT GET A SIGNIFICANT PORTION OF REVENUE FROM CALIFORNIA ARE THE AIRLINE SKYWEST OF UTAH HEALTH SERVICES PROVIDERS FOUNDATION HEALTH AND NATIONAL MEDICAL ENTERPRISES RETAILERS CARTER HAWLEY HALE DAYTON HUDSON OF MINNEAPOLIS AND MAY DEPARTMENT STORES OF SAINT LOUIS RESTAURANT OPERATOR CARL KARCHER ENTERPRISES AND THRIFTS GOLDEN WEST FINANCIAL GREAT WESTERN FINANCIAL AND SFFED LIKE GOLDMAN SACHS IT FAVORS KAUFMAN AND BROAD HOME AND GOOD GUYS MR. HENSLEY A SALOMON ECONOMIST SAYS THE EARTHQUAKE TERRIBLE AS ITS HUMAN CONSEQUENCES ARE PROBABLY WON'T HAVE A MAJOR EFFECT ON CALIFORNIA'S ECONOMY DISRUPTIONS OF COMMUTING AND TRUCKING AND SOME LOSS OF TOURISM WILL OCCUR HE SAYS BUT THERE WILL BE A LOT OF CONSTRUCTION AND REFURBISHING SALOMON BANK ANALYST JOHN LEONARD SAYS THAT AMONG MAJOR BANKS WELLS FARGO OFFERS THE PUREST PLAY ON THE CALIFORNIA ECONOMY BUT HE CONSIDERS WELLS FARGO'S STOCK A BIT PRICEY COMPARED WITH THAT OF BANKAMERICA THE LATTER BANK ALSO HAS MORE ROOM TO IMPROVE PROFIT THROUGH COST CUTTING HE SAYS OF COURSE NOT EVERYONE WANTS TO CLIMB ON CALIFORNIA'S BANDWAGON I DON'T SENSE THAT THINGS HAVE IMPROVED AT ALL SAYS JOHN CLELAND CHIEF INVESTMENT OFFICER AT SECURITY MANAGEMENT IN TOPEKA KANSAS MR. CLELAND JUST RETURNED FROM A TRIP TO SAN DIEGO WHERE HE SAYS HE TALKED WITH PEOPLE FROM CLARINET PLAYERS TO CAB DRIVERS THEY CONTINUE TO BE CONCERNED ABOUT LOSING THEIR JOBS NOT PLANNING BIG PURCHASES OR LAUNCHING NEW VENTURES HE SAYS I WALKED THROUGH BALBOA PARK TO TRY TO GET A FEELING FOR THE NUMBER OF HOMELESS MY FEELING WAS THAT THERE WERE MORE THIS TIME THAN THERE WERE THE LAST TIME BUT SPRINGFIELD N. J. ECONOMIST A. GARY SHILLING THINKS CALIFORNIA IS GETTING BETTER HIS REAL ESTATE CLIENTS SAY THAT IN CALIFORNIA PROPERTY MARKETS QUOTE THINGS HAVE FINALLY STABILIZED QUOTE HE REPORTS THIS IS THE FIRST TIME IN TWO YEARS THAT THEY'VE BEEN ANYTHING BUT CREPE HANGERS AND CHARLES BIDERMAN A CALIFORNIA INVESTMENT NEWSLETTER WRITER WHO FOR THE PAST TWO YEARS HAD ADVOCATED SHORT SELLING BETTING AGAINST CALIFORNIA STOCKS HAS CHANGED HIS TUNE DECEMBER WAS THE FIRST POSITIVE MONTH IN QUITE A WHILE FOR CALIFORNIA RETAIL SALES HE SAYS UNFORTUNATELY MR. BIDERMAN SAYS I DON'T KNOW WHAT YOU WOULD BUY THAT IS CHEAP THAT IS A CALIFORNIA PLAY THE BUILDERS ARE NOT UNDISCOVERED CERTAINLY WELLS FARGO YOU CAN'T SAY IS UNDISCOVERED BUT HE DOES LIKE UNILAB A BIG CLINICAL LABORATORY WITH A STRONGHOLD IN THE CALIFORNIA MARKET THE INSIDERS HAVE BEEN BUYING A TON OF STOCK HE SAYS THESE TEN STOCKS GET A LARGE PERCENTAGE OF THEIR REVENUES IN CALIFORNIA IF THE LONG DEPRESSED STATE REBOUNDS AS SOME ANALYSTS PREDICT THE STOCKS COULD ACHIEVE STRONG GAINS IF RIP VAN WINKLE SLEPT THROUGH NINETEEN NINETY FOUR HE WOULD WAKE UP TO FIND THE DOW JONES INDUSTRIAL AVERAGE NEARLY UNCHANGED ACCORDING TO A POLL OF ONE HUNDRED MONEY MANAGERS THE POLL WAS CONDUCTED DECEMBER FIFTEENTH TO JANUARY FOURTH BY ROPER FOR THE CONSULTING GROUP OF SMITH BARNEY SHEARSON ON AVERAGE THE MANAGERS EXPECT THE INDUSTRIAL AVERAGE TO END THIS YEAR AT THREE THOUSAND SEVEN HUNDRED NINETY SEVEN WHICH WOULD CONSTITUTE A GAIN OF ONE POINT ONE PERCENT FROM YEAR END BUT THE MANAGERS DON'T EXPECT A QUIET YEAR TWO THIRDS OF THEM ANTICIPATE A STOCK MARKET DECLINE SOME TIME DURING NINETEEN NINETY FOUR WHENEVER THE NEXT DECLINE COMES FORTY SIX PERCENT OF MANAGERS EXPECT IT TO BE MILD A TEN PERCENT DROP OR LESS THIRTY FIVE PERCENT EXPECT IT TO BE MODERATE A TEN PERCENT TO FIFTEEN PERCENT DECLINE AND ONLY EIGHT PERCENT EXPECT IT TO BE SEVERE MORE THAN A FIFTEEN PERCENT FALL THE REST HAD NO OPINION CHRYSLER CORPORATION WILL PAY ITS MORE THAN SIXTY FIVE THOUSAND UNITED AUTO WORKERS EMPLOYEES FOUR THOUSAND THREE HUNDRED DOLLARS EACH IN PROFIT SHARING A RECORD FOR A U. S. AUTO MAKER CHRYSLER SAID THE AUTO MAKER ALSO POSTED SHARP SALES GAINS IN EUROPE THE CHRYSLER PAYMENTS TO BE MADE FEBRUARY ELEVENTH ARE MORE THAN TEN TIMES LAST YEAR'S FOUR HUNDRED TWENTY ONE DOLLAR PAYMENTS CHRYSLER'S SIXTEEN THOUSAND NONUNION SALARIED EMPLOYEES ALSO WILL RECEIVE PROFIT SHARING PAYMENTS CHRYSLER SAID FORD MOTOR COMPANY ALSO IS EXPECTED TO MAKE A PROFIT SHARING PAYMENT AS WORKERS BEGIN TO REAP THE BENEFITS OF THE AUTOMOTIVE INDUSTRY UPTURN SEPARATELY THE EUROPEAN AUTOMOBILE MANUFACTURERS' ASSOCIATION SAID CHRYSLER WAS ONE OF TWO MANUFACTURERS TO POST AN INCREASE IN EUROPEAN SALES IN NINETEEN NINETY THREE THE EUROPEAN VEHICLE MARKET PLUNGED FIFTEEN POINT ONE PERCENT TO ELEVEN POINT FIVE MILLION VEHICLES BUT CHRYSLER ALTHOUGH A MINUSCULE PLAYER INCREASED ITS SALES THIRTY NINE POINT FOUR PERCENT TO FIFTY TWO THOUSAND SIX HUNDRED TEN VEHICLES CHRYSLER'S MARKET SHARE ROSE TO ZERO POINT FIVE PERCENT FROM ZERO POINT THREE PERCENT THE YEAR BEFORE THE ROVER GROUP ALSO POSTED A SALES INCREASE FOR THE YEAR UP NINE POINT SEVEN PERCENT FORD OF EUROPE AND GENERAL MOTORS COMPANY BOTH POSTED DECREASES IN SALES FOR THE YEAR BUT INCREASES IN MARKET SHARE FORD'S MARKET SHARE ROSE TO ELEVEN POINT FIVE PERCENT FROM ELEVEN POINT TWO PERCENT IN NINETEEN NINETY TWO AND G. M.'S ROSE TO THIRTEEN PERCENT FROM TWELVE POINT FIVE PERCENT MELVIN A. ETTINGER FIFTY TWO YEARS OLD WAS NAMED PRESIDENT OF VERDEPRINT TECHNOLOGIES A UNIT OF THIS BUSINESS MACHINES MAKER EFFECTIVE JANUARY THIRTY FIRST THE UNIT DEVELOPS AND MARKETS SILVERLESS DRY PROCESSING FILM FOR THE GRAPHIC ARTS AND PRINTING INDUSTRIES MR. ETTINGER IS CURRENTLY CHIEF EXECUTIVE OFFICER OF POLYCHROME CORPORATION A UNIT OF DIC AMERICAS INCORPORATED JOHN A. HILL CHAIRMAN OF FIRST RESERVE CORPORATION AND DAVID H. KENNEDY MANAGING DIRECTOR AT FIRST RESERVE WERE ELECTED TO THE BOARD OF THIS OIL AND GAS COMPANY THE ELECTION OF MR. HILL FIFTY ONE YEARS OLD AND MR. KENNEDY FORTY FOUR INCREASES THE BOARD TO TEN MEMBERS PETROCORP SAID THAT ITS U. S. F. AND G. CORPORATION AND CIGNA CORPORATION UNITS COMPLETED THEIR PREVIOUSLY ANNOUNCED SALE OF ONE MILLION SIX HUNDRED FIFTY THOUSAND PETROCORP COMMON SHARES TO FIRST RESERVE AT TEN DOLLARS AND FIFTY CENTS A SHARE GIVING FIRST RESERVE A TWENTY FOUR POINT SEVEN PERCENT EQUITY INTEREST IN PETROCORP DON H. DAVIS WAS NAMED AN EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR. DAVIS WILL SHARE THAT TITLE WITH KENT M. BLACK WHO HAS SERVED IN THE POST SINCE NINETEEN EIGHTY NINE MR. DAVIS FIFTY FOUR YEARS OLD WAS PRESIDENT OF ROCKWELL'S ALLEN BRADLEY INDUSTRIAL AUTOMATION UNIT IN MILWAUKEE HE WILL BE SUCCEEDED AS PRESIDENT BY JODIE K. GLORE FORTY SIX THE UNIT'S SENIOR VICE PRESIDENT ROCKWELL ALSO HAS INTERESTS IN THE SPACE INDUSTRY ELECTRONICS AND PRINTING MUCH OF THE NATION WAS LOCKED IN A COLD WAVE YESTERDAY BUT THE JUNK BOND MARKET WAS HOT INVESTORS SNAPPED UP BONDS OFFERED BY FAMILY RESTAURANTS INCORPORATED AND M. F. S. COMMUNICATIONS CORPORATION ONE SIGN OF INVESTOR WILLINGNESS TO TAKE GREATER RISKS IN THE JUNK BOND MARKET WAS THE WAY THEY SCRAMBLED TO BUY ZERO COUPON BONDS WHICH ACCOUNTED FOR PART OF BOTH OFFERINGS ZERO COUPON BONDS PAY NO INTEREST AND ARE SOLD AT A STEEP DISCOUNT TO FACE VALUE THEY ARE SENSITIVE TO INTEREST RATE MOVES AND ARE CONSIDERED A RISKIER BET THAN COUPON PAYING CORPORATE BONDS M. F. S. RAISED FIVE HUNDRED MILLION DOLLARS BY SELLING TEN YEAR ZERO COUPON SENIOR NOTES FAMILY RESTAURANTS RAISED FOUR HUNDRED FIFTY MILLION DOLLARS BY SELLING THREE HUNDRED MILLION DOLLARS OF EIGHT YEAR SENIOR NOTES AND THE REMAINDER IN TEN YEAR ZERO COUPON SENIOR NOTES MEANWHILE THE PRICE OF THE THIRTY YEAR TREASURY BOND DROPPED THREE EIGHTHS POINT OR THREE DOLLARS AND SEVENTY FIVE CENTS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO NINETY NINE AND TEN THIRTY SECONDS TO YIELD SIX POINT TWO NINE PERCENT COMPARED WITH SIX POINT TWO SIX PERCENT TUESDAY OTHER TREASURY MATURITIES WERE SLIGHTLY LOWER TO UNCHANGED BOTH OF THE JUNK DEALS WERE EXTREMELY WELL RECEIVED AND ONLY BEGAN TO TAP THE LARGE INVESTOR DEMAND WAITING TO POUNCE ON NEW ISSUES SYNDICATE OFFICIALS AND TRADERS SAID ONE SIGN OF STRONG DEMAND WAS SHARP PRICE INCREASES SHORTLY AFTER THE FAMILY RESTAURANT BONDS WERE PRICED ACCORDING TO KINGMAN PENNIMAN HEAD OF HIGH YIELD RESEARCH AT DUFF AND PHELPS INVESTMENT RESEARCH CORPORATION OF CHICAGO THE PRICE OF FAMILY'S EIGHT YEAR SENIOR NOTES JUMPED TWO POINTS TO ONE HUNDRED TWO A GAIN OF TWENTY DOLLARS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE THE PRICE OF THE FAMILY'S ZERO COUPON NOTES ROSE ABOUT ONE AND ONE QUARTER POINTS HE SAID THE EIGHT YEAR NOTES HAD BEEN SOLD AT PAR TO YIELD NINE POINT SEVEN FIVE PERCENT BY THE END OF THE DAY THE NOTES WERE YIELDING NINE POINT FIVE TWO PERCENT SINCE YIELDS DROP AS PRICES RISE THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLE B. ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE B. BY STANDARD AND POOR'S CORPORATION THE COMPANY ALSO RAISED ONE HUNDRED FIFTY MILLION DOLLARS BY SELLING TEN YEAR SENIOR SUBORDINATED DISCOUNT NOTES PRICED AT SEVENTY TWO POINT SIX NINE SEVEN TO YIELD TEN POINT EIGHT SEVEN FIVE PERCENT THE YIELD HAD DROPPED TO TEN POINT SIX OH EIGHT PERCENT BY DAY'S END THE NOTES WHICH PAY NO COUPON FOR FOUR YEARS AND AREN'T CALLABLE FOR FIVE YEARS ARE RATED SINGLE B. THREE BY MOODY'S AND SINGLE B. MINUS BY S. AND P. THE DEBT WAS SOLD BY UNDERWRITERS LED BY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION FAMILY RESTAURANTS IS THE FORMER RESTAURANT ENTERPRISES GROUP INCORPORATED WHICH IS IN BANKRUPTCY COURT PROCEEDINGS THE DEBT OFFERING IS PART OF THE COMPANY'S REORGANIZATION PLAN WHICH IS EXPECTED TO BE COMPLETED BY THE END OF THE MONTH AS PART OF THE REORGANIZATION APOLLO ADVISORS L. P. AND ITS AFFILIATES WILL PURCHASE A FORTY POINT SIX PERCENT STAKE FOR SIXTY FIVE MILLION DOLLARS AND GREEN EQUITY INVESTORS L. P. AND ITS AFFILIATES WILL PURCHASE A EIGHTEEN POINT EIGHT PERCENT STAKE FOR THIRTY MILLION DOLLARS FOODMAKER WILL RECEIVE A FORTY POINT SIX PERCENT STAKE AND CASH IN RETURN FOR THE SALE OF ITS CHI CHI'S INCORPORATED PART OF THE PROCEEDS FROM THIS OFFERING WILL GO TOWARDS PAYING FOODMAKER FOR THE SALE APPARENTLY THE SUCCESS OF THE SALE OF THE FAMILY RESTAURANT BONDS SPILLED OVER INTO THE OFFERING BY M. F. S. COMMUNICATIONS A DIGITAL FIBER OPTIC COMMUNICATIONS COMPANY ACCORDING TO MR. PENNIMAN M. F. S. WAS ABLE TO INCREASE THE SIZE OF ITS OFFERING TO FIVE HUNDRED MILLION DOLLARS AND REDUCE THE YIELD ON ITS ZERO COUPON NOTES THANKS TO THE STRONG DEMAND M. F. S. SOLD THE SENIOR DISCOUNT NOTES AT SIXTY THREE POINT FOUR TWO SIX TO YIELD NINE POINT THREE SEVEN FIVE PERCENT THE NOTES WON'T PAY A COUPON FOR FIVE YEARS AND ARE NONCALLABLE FOR FIVE YEARS THEY ARE RATED SINGLE B. THREE BY MOODY'S AND SINGLE B. BY S. AND P. THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED IT WAS THE COMPANY'S FIRST FORAY INTO THE JUNK BOND MARKET M. F. S. COMMUNICATIONS IS THE NATION'S LARGEST PROVIDER OF LOCAL COMPETITIVE ACCESS TELECOMMUNICATIONS THROUGH DIGITAL FIBER OPTIC NETWORKS THE OMAHA NEBRASKA BASED COMPANY HAS FOCUSED ITS SERVICE IN THE LARGER BUSINESS TO BUSINESS SECTOR AND PLANS TO EXPAND TO SIXTY MARKETS IN THE NEXT FIVE YEARS THROUGH A ONE BILLION DOLLAR EXPANSION A COMPANY SPOKESMAN SAID ACCORDING TO THE PROSPECTUS PROCEEDS MAY BE USED TO FUND THE EXPANSION QUOTE M. F. S. COMMUNICATIONS IS A GREAT COMPANY THEY HAVE FOUND A NICHE IN THE FIBER OPTICS BUSINESS SAID MARION BOUCHER A MANAGING DIRECTOR AND SENIOR TELECOMMUNICATIONS ANALYST WHO JOINED BEAR STEARNS AND COMPANY TODAY AFTER LEAVING D. L. J. THEY ARE IN THE RIGHT SPOT AT THE RIGHT TIME SHE ADDED UNLIKE TRADITIONAL TELEPHONE COMPANIES WHICH USE COPPER WIRES FOR TRANSMISSION M. F. S. PROVIDES STATE OF THE ART FIBER OPTIC LINKS IN MAJOR METROPOLITAN AREAS SAID MS. BOUCHER COPPER WIRES AREN'T ALWAYS TOTALLY RELIABLE WHILE FIBER OPTICS ARE VIRTUALLY FAULT FREE SHE SAID WHILE YESTERDAY MARKED M. F. S. COMMUNICATIONS' FIRST DEBT ISSUANCE MS. BOUCHER SAID SHE HAS BEEN RECOMMENDING THE COMPANY'S STOCK FOR THE PAST YEAR IT'S BEEN QUITE AWHILE SINCE WE'VE SEEN A NUMBER OF ISSUERS LIKE THIS SELLING ZERO COUPON BONDS SAID MR. PENNIMAN OF DUFF AND PHELPS WE'RE BEGINNING TO WONDER IF PEOPLE ARE MAKING INTEREST RATE CALLS IN ADDITION TO CREDIT CALLS HE ADDED THAT'S BECAUSE IF INTEREST RATES DROP INVESTORS IN ZERO COUPON BONDS STAND TO EARN MORE THAN INVESTORS IN PLAIN VANILLA CORPORATE BONDS MR. PENNIMAN SAID HE THOUGHT THE FINAL YIELD ON THE M. F. S. DEAL WAS A BIT TOO LOW FOR HIS TASTES WE WOULD HAVE LIKED TO SEE IT COMING ONE QUARTER TO ONE HALF POINT HIGHER HE SAID THERE ARE A NUMBER OF OTHER ZERO COUPON JUNK BOND OFFERINGS IN THE WORKS ACCORDING TO M. C. M. CORPORATEWATCH INCLUDING A TWO HUNDRED MILLION DOLLAR OFFERING OF FIVE YEAR ZERO COUPON NOTES FROM A. C. F. INDUSTRIES HOLDINGS CORPORATION ACCORDING TO EVAN STEEN MANAGER OF THE PAINEWEBBER HIGH INCOME FUND PART OF THE REASON FOR SUCH STRONG DEMAND MAY ALSO BE GREAT CONFIDENCE OF INVESTORS IN SO CALLED QUOTE GROWTH STORIES QUOTE OR COMPANIES EXPECTED TO FLOURISH IN THE NEXT FEW YEARS IN THE INVESTMENT GRADE MARKET EIGHT HUNDRED FOUR MILLION DOLLARS OF DEBT WAS PRICED FROM ISSUERS INCLUDING A. O. N. CORPORATION FIRST CHICAGO CORPORATION AND PRIVATE EXPORT FUNDING CORPORATION NEWS THAT ECONOMIC GROWTH IS NOT ONLY EXPANDING BUT ACCELERATING DID LITTLE TO AFFECT A THINLY TRADED TREASURY MARKET BECAUSE THE NEWS WAS ANTICIPATED NONETHELESS THE FEDERAL RESERVE'S REPORT ON REGIONAL ECONOMIC CONDITIONS GAVE TRADERS A SENSE THAT THE ECONOMY CONTINUES TO STRENGTHEN THE DATA COVERS A PERIOD OF MID DECEMBER TO JANUARY TENTH PRICES OF MANY TREASURY SECURITIES MATURING IN FIVE YEARS OR LESS WERE LITTLE CHANGED WHILE THOSE WITH LONGER MATURITIES POSTED LOSSES WHILE THE THIRTY YEAR TREASURY BOND DROPPED THREE EIGHTHS POINT THE TEN YEAR NOTE DROPPED JUST ONE EIGHTH POINT TO ONE HUNDRED AND SIX THIRTY SECONDS TO YIELD FIVE POINT SEVEN ONE PERCENT COMPARED WITH FIVE POINT SIX NINE PERCENT ON TUESDAY A BIGGER STORY WAS THE BITTERLY COLD WEATHER GRIPPING MUCH OF THE NATION SOME TRADERS ATTRIBUTED THE LACKLUSTER STATE OF THE MARKET AS MUCH TO FRIGID TEMPERATURES AS THE LACK OF COMPELLING ECONOMIC DATA THE MARKET'S ATTENTION TURNED TO WHAT EFFECT THE COLD WEATHER MIGHT HAVE ON THE ECONOMY FORD MOTOR COMPANY FOR INSTANCE CLOSED TWO PLANTS IN LOUISVILLE KENTUCKY AND REDUCED PRODUCTION AT ELEVEN OTHER PLANTS AS A RESULT OF SEVERE WEATHER CONDITIONS IN MUCH OF THE U. S. AND CANADA ANALYSTS BELIEVE THE COLD WEATHER WILL AFFECT CONSUMER SPENDING AND THE HOUSING SECTOR AS WELL AS MANUFACTURING FAR MORE THAN THE LOS ANGELES EARTHQUAKE THE TREASURY ANNOUNCED PLANS TO SELL SEVENTEEN BILLION DOLLARS IN TWO YEAR NOTES TUESDAY AND TWELVE BILLION DOLLARS IN FIVE YEAR NOTES WEDNESDAY ON TARGET WITH EXPECTATIONS THE FIVE YEAR NOTE OFFERING WAS INCREASED FROM SIXTEEN BILLION DOLLARS LAST MONTH TO FINANCE THE PREVIOUSLY ANNOUNCED CALL OF A BOND IN WHEN ISSUED TRADING THE FIVE YEAR NOTE YIELDED FIVE POINT ONE OH PERCENT AND THE TWO YEAR NOTE YIELDED FOUR POINT ONE FIVE PERCENT ISSUERS PRICED MORE THAN ONE BILLION DOLLARS OF MUNICIPAL DEBT WITH MAJOR OFFERING FROM WASHINGTON SUBURBAN SANITARY DISTRICT AND NORTH CAROLINA A MORGAN STANLEY AND COMPANY GROUP WON THE WASHINGTON SUBURBAN SANITARY DISTRICT'S FOUR HUNDRED THIRTY FIVE POINT THREE MILLION DOLLARS VARIOUS NINETEEN NINETY FOUR REFUNDING BONDS THE ISSUE WAS PRICED TO YIELD FROM TWO POINT FOUR OH PERCENT IN NINETEEN NINETY FOUR TO FIVE POINT TWO OH PERCENT IN TWO THOUSAND THIRTEEN TO FIFTEEN THE SESSION'S SECOND LARGEST ISSUE NORTH CAROLINA'S FOUR HUNDRED MILLION DOLLAR CAPITAL IMPROVEMENT BONDS WAS WON BY A C. S. FIRST BOSTON GROUP YIELDS RANGE FROM TWO POINT THREE OH PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT OH OH PERCENT IN TWO THOUSAND TWELVE AND TWO THOUSAND THIRTEEN IN LOS ANGELES MUNI DEALINGS REMAINED SLOW FOLLOWING THE SEVERE EARTHQUAKE MONDAY TRADERS SAID CALIFORNIA GOVERNOR PETE WILSON SAID DAMAGE MAY RANGE BETWEEN FIFTEEN BILLION DOLLARS AND THIRTY BILLION DOLLARS THE FEDERAL EMERGENCY MANAGEMENT AGENCY SAID IT MAY SPEND FIVE HUNDRED MILLION DOLLARS ON REPAIRS AND RELIEF BACKING OFF FROM AN EARLIER ESTIMATE OF ONE BILLION DOLLARS PRICES OF MORTGAGE SECURITIES SHOWED LITTLE IF ANY MOVEMENT THE SIX AND ONE HALF PERCENT SECURITIES FOR FEBRUARY DELIVERY FINISHED UNCHANGED GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ENDED AT NINETY NINE AND TWENTY THREE THIRTY SECONDS FEDERAL HOME LOAN MORTGAGE CORPORATION GOLDS WERE AT NINETY NINE AND TWENTY EIGHT THIRTY SECONDS AND FEDERAL NATIONAL MORTGAGE ASSOCIATION WAS AT NINETY NINE AND TWENTY THREE THIRTY SECONDS JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE STEPHEN PETTIT WAS NAMED TO THE NEWLY CREATED POST OF MANAGING DIRECTOR EUROPE EFFECTIVE MARCH FIRST MR. PETTIT JOINS THE TELECOMMUNICATIONS COMPANY FROM BRITISH PETROLEUM COMPANY WHERE HE WAS CHIEF EXECUTIVE OFFICER PETROCHEMICALS WITH B. P. CHEMICALS CABLE AND WIRELESS ALSO SAID LINUS CHEUNG WAS NAMED CHIEF EXECUTIVE OF ITS FIFTY SEVEN PERCENT OWNED HONG KONG TELECOMMUNICATIONS SUCCEEDING MIKE GALE WHO DIED TUESDAY MR. CHEUNG WILL JOIN HONG KONG TELECOM FROM THE CATHAY PACIFIC AIRWAYS THE RECORD SLIDE OF THE RUBLE AND CONFLICTING REPORTS THAT PRO REFORM FINANCE MINISTER BORIS FYODOROV IS ABOUT TO DEFECT FROM PRESIDENT YELTSIN'S CABINET SPOTLIGHT THE POWER OF THE CENTRAL BANK AND ITS SOVIET STYLE CHAIRMAN VIKTOR GERASHCHENKO FOR THE PAST YEAR MESSRS GERASHCHENKO AND FYODOROV HAVE SPARRED OVER FUNDAMENTALLY OPPOSED VISIONS OF WHAT ROLE THE CENTRAL BANK OF RUSSIA SHOULD PLAY MR. FYODOROV HAS INSISTED THAT THE BANK'S MAIN TASK SHOULD BE TO DEFEND THE STABILITY OF THE RUBLE AND LET CREDIT FLOW VIA MARKET FORCES TO WHERE IT WILL BE MOST USEFUL MR. GERASHCHENKO HAS FAVORED PUMPING OUT CHEAP CREDIT TO SUBSIDIZE FAILING RUSSIAN INDUSTRIES COLLECTIVE FARMS AND FORMER SOVIET STATES THAT IN TURN CAN SERVE AS CUSTOMERS FOR RUSSIAN PRODUCTS THE RESULT OF THIS EASY MONEY HAS BEEN DOUBLE DIGIT MONTHLY INFLATION AND A RADICALLY DEVALUED RUBLE SINCE HE TOOK CHARGE OF THE CENTRAL BANK IN JULY NINETEEN NINETY TWO THE EIGHTEEN POINT FIVE PERCENT PLUNGE OF THE RUBLE AGAINST THE DOLLAR DURING THE PAST THREE DAYS LARGELY REFLECTS MARKET FEARS THAT MR. GERASHCHENKO AND HIS CENTRAL PLANNING INFLATIONARY WAYS ARE ABOUT TO PREVAIL FEEDING THESE FEARS IS MR. GERASHCHENKO'S LATEST COUP AGAINST REFORM A DEAL HE SIGNED JANUARY FIFTH WITH THE FORMER SOVIET STATE OF BELARUS FOR A NEW QUOTE RUBLE ZONE QUOTE MONETARY UNION IT'S AN AGREEMENT LIKELY TO CARRY A HIGH COST FOR RUSSIA AND MORE IMPORTANT IT REPRESENTS A TREND BACK TOWARD CENTRAL PLANNING THIS PLAN FOR A MOSCOW MINSK RUBLE ZONE WAS ONE OF THE TWO AFFRONTS TO REFORM POLICIES SPECIFIED BY FORMER REFORM CZAR YEGOR GAIDAR WHEN HE RESIGNED AS FIRST DEPUTY PRIME MINISTER SUNDAY AND THE RECENT TURN OF THE POLICY TIDE IN MR. GERASHCHENKO'S FAVOR IS ONE REASON WHY MR. FYODOROV AS A CONDITION FOR STAYING ON IN MR. YELTSIN'S NEW CABINET AS FINANCE MINISTER HAS BEEN DEMANDING THE RESIGNATION OF MR. GERASHCHENKO UNRUFFLED AND SO FAR UNREMOVED FROM HIS JOB MR. GERASHCHENKO IN A TELEVISION INTERVIEW SUNDAY DEFENDED HIS INFLATIONARY CENTRAL PLANNING WAYS MR. GERASHCHENKO TOLD VIEWERS FRANKLY I CAN SEE NO REASONS FOR PANIC BUT MANY RUSSIANS ARE SCARED SINCE SUNDAY THE RUBLE HAS LOST ABOUT ONE HUNDRED POINTS DAILY AGAINST THE DOLLAR CLOSING WEDNESDAY AT A RECORD LOW OF ONE THOUSAND SIX HUNDRED SEVEN YESTERDAY MR. FYODOROV WAS QUOTED BY THE INDEPENDENT INTERFAX NEWS AGENCY AS SAYING HE'S WILLING TO BET ONE HUNDRED THOUSAND RUBLES THAT IF HE INDEED QUITS THE CABINET THE RUBLE BY THE END OF THE WEEK WILL FALL TO TWO THOUSAND TO THE DOLLAR THE AIM OF THE NEW RUBLE ZONE DEAL IS THAT THE NATIONAL BANK OF BELARUS WILL EFFECTIVELY BECOME A RUBLE EMITTING BRANCH OF THE CENTRAL BANK OF RUSSIA THIS WOULD CREATE A NEW CHANNEL FOR THE RUSSIAN CENTRAL BANK TO ISSUE SUBSIDIZED CREDITS WHICH COULD BE TARGETED ROUGHLY WHERE IT MIGHT CHOOSE SO BELARUS WILL BE CEDING ITS ECONOMIC SOVEREIGNTY NOT SIMPLY TO RUSSIA BUT TO THE DIRECTIVES OF THE RUSSIAN CENTRAL BANK IN EXCHANGE BELARUS WILL GET TO CASH IN ITS FAST DEPRECIATING CURRENCY THE ZAICHIK OR RABBIT FOR RUBLES AND THEN START ISSUING RUBLES IN THE FORM OF BOTH CASH AND CREDIT THE IMPLICIT UNDERSTANDING IS THAT BELARUS WILL USE THESE RUBLES TO BUY GOODS FROM RUSSIA INCLUDING DESPERATELY NEEDED OIL AT RUSSIA'S BELOW WORLD MARKET DOMESTIC PRICES MUCH ABOUT THE DEAL REMAINS TO BE FIRMED UP INCLUDING THE RATE AT WHICH THE INITIAL SWAP WILL TAKE PLACE BUT ONCE THIS NEW RUBLE ZONE SWINGS INTO ACTION MR. GERASHCHENKO WILL HAVE EXPANDED HIS POWER BASE BEYOND RUSSIA'S BORDERS AT A COST OF SUBSIDIES TO BELARUS THAT WILL ULTIMATELY COME FROM THE POCKETS OF ALREADY STRAPPED RUSSIANS THIS IS EXACTLY THE KIND OF POLICY THAT MR. FYODOROV IN PARTICULAR HAS BEEN LABORING FOR THE PAST YEAR TO PREVENT UNDER PRESSURE FROM THE FINANCE MINISTRY MR. GERASHCHENKO RAISED CENTRAL BANK LENDING RATES TO A LEVEL THAT BY THE END OF THE YEAR WAS BEGINNING TO MESH WITH NORMAL MARKET RATES THE RUBLE BEGAN TO STABILIZE AT ABOUT ONE THOUSAND TWO HUNDRED TO THE DOLLAR AND INFLATION IN DECEMBER DROPPED TO TWELVE PERCENT ITS LOWEST RATE IN MONTHS WHILE THIS WAS GOING ON HOWEVER MR. GERASHCHENKO WAS TRYING TO OUTFLANK MR. FYODOROV'S DISCIPLINARY EFFORTS BY SETTING UP WHAT WAS BILLED LAST OCTOBER AS A RUBLE ZONE OF A NEW TYPE A WEAKER VERSION OF THIS MONTH'S BELARUS RUBLE ZONE DEAL THIS PREVIOUS SCHEME WOULD HAVE ALLOWED FIVE OTHER FORMER SOVIET STATES KAZAKHSTAN TAJIKISTAN ARMENIA UZBEKISTAN AND BELARUS ACCESS TO MR. GERASHCHENKO'S RUBLE LARGESSE MEANWHILE MR. GERASHCHENKO ALSO FIRED ONE OF THE TWO MOST REFORM MINDED DEPUTY GOVERNORS OF THE CENTRAL BANK'S BOARD SERGEI IGNATIEV REMOVING MR. IGNATIEV ALLOWED MR. GERASHCHENKO MORE ROOM TO MANEUVER TOWARD ISSUING MORE CREDITS AND ACCORDING TO A SWEDISH ADVISER TO THE RUSSIAN FINANCE MINISTRY ECONOMIST ANDERS ASLUND MR. GERASHCHENKO LAST FALL ALSO REQUISITIONED THE PRINTING OF SUFFICIENT CASH RUBLES TO FULLY COVER A SURPRISE SWAP OF THE OTHER FIVE COUNTRIES' CURRENCIES FOR NEW RUSSIAN RUBLES THE DEAL COLLAPSED WHEN DEPUTY PRIME MINISTER ALEXANDER SHOKHIN ADDED THE CONDITION THAT THESE REPUBLICS HAD TO DEPOSIT GOLD OR HARD CURRENCY RESERVES WITH RUSSIA'S CENTRAL BANK AS COLLATERAL FOR RUBLE CREDITS THE RECENT BELARUS RUBLE DEAL SAYS MR. ASLUND IS MUCH WORSE THAN THE RUBLEZONE PLAN MR. GERASHCHENKO WAS AIMING FOR LAST FALL AMONG OTHER THINGS ITS ASSUMPTION OF ECONOMIC CONTROL OVER A NEIGHBORING COUNTRY FITS NEATLY IN TANDEM WITH THE PAST YEAR'S TREND TOWARD RUSSIAN MILITARY INTERVENTION IN WHAT MR. YELTSIN'S GOVERNMENT HAS BEEN CALLING THE NEAR ABROAD AND IT IS THE CONSTANT SEE SAW STRUGGLE TO PRODUCE A COHERENT REFORM POLICY THAT IS FRUSTRATING REFORMERS THIS IS WHY RUSSIANS ARE FRANTICALLY UNLOADING THEIR RUBLES FEARING THAT MR. FYODOROV MAY CLEAR OUT OF THE FINANCE MINISTRY LEAVING MR. GERASHCHENKO A CLEAR FIELD TO FURTHER EXPAND THE ZONE OF THE DEPRECIATING RUBLE HOMI B. PATEL FORTY FOUR YEAR OLD PRESIDENT AND CHIEF OPERATING OFFICER OF THIS APPAREL MANUFACTURER WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO THIRTEEN DESPITE A DAY OF WORRYING ABOUT EARNINGS STOCK PRICES MOVED HIGHER LATE IN THE SESSION PUSHING THE DOW JONES INDUSTRIAL AVERAGE TO ANOTHER RECORD LOWER THAN EXPECTED PROFIT REPORTS FROM BELLWETHER COMPANIES INCLUDING CHIP MAKER INTEL AND DRUG MANUFACTURER PFIZER BATTERED TECHNOLOGY AND PHARMACEUTICAL STOCKS AND PUSHED MARKET AVERAGES LOWER MUCH OF THE DAY A ROUND OF BUYING THOUGH CARRIED MUCH OF THE MARKET HIGHER BEFORE THE CLOSE COMPUTER DRIVEN PROGRAM BUYING AIDED THE LATE RECOVERY ACCORDING TO MARKET RESEARCH FIRM BIRINYI ASSOCIATES THE DOW JONES INDUSTRIAL AVERAGE ENDED WITH A GAIN OF FOURTEEN POINT OH EIGHT OR ZERO POINT THREE SIX PERCENT TO THREE THOUSAND EIGHT HUNDRED EIGHTY FOUR POINT THREE SEVEN ITS SEVENTH HIGH OF THE YEAR THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ALSO EDGED TO A HIGH GAINING ZERO POINT ONE NINE OR ZERO POINT ZERO SEVEN PERCENT TO TWO HUNDRED SIXTY TWO POINT NINE FIVE TOPPING ITS PREVIOUS RECORD BY LESS THAN ONE TENTH OF A POINT OTHER BROAD BASED INDEXES WERE MIXED WHILE ADVANCERS LED DECLINERS BY A SLIM ONE THOUSAND ONE HUNDRED FORTY FOUR TO NINE HUNDRED EIGHTY THREE ON THE BIG BOARD VOLUME WAS HEAVY AT ABOUT THREE HUNDRED TEN POINT EIGHT MILLION SHARES JUST ABOVE TUESDAY'S THREE HUNDRED EIGHT POINT SIX MILLION THE LATE RECOVERY COULDN'T REVIVE THE NASDAQ STOCK MARKET TECHNOLOGY ISSUES WITH WHICH THE MARKET IS HEAVILY WEIGHTED REMAINED DEPRESSED THROUGH THE CLOSE THE NASDAQ COMPOSITE INDEX WHICH SET A RECORD TUESDAY LOST THREE POINT SEVEN FOUR OR ZERO POINT FOUR SEVEN PERCENT TO SEVEN HUNDRED EIGHTY NINE POINT TWO EIGHT INTEL TUMBLED FOUR AND THREE QUARTERS OR SEVEN POINT ONE PERCENT TO SIXTY TWO AND ONE HALF ON NASDAQ LEADING VOLUME OF TWENTY THREE POINT SIX MILLION SHARES THE SANTA CLARA CALIFORNIA COMPANY REPORTED FOURTH QUARTER EARNINGS OF ONE DOLLAR AND THIRTY FIVE CENTS A SHARE UP FROM NINETY NINE CENTS LAST YEAR BUT BELOW THE ONE DOLLAR AND THIRTY NINE CENTS FORECAST BY ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM DISAPPOINTING REPORTS ALSO CAME FROM COMPUTER WORKSTATION MAKER SUN MICROSYSTEMS SOFTWARE DEVELOPER BORLAND INTERNATIONAL AND COMPUTER MAKER DIGITAL EQUIPMENT SUN MICRO FELL THREE QUARTERS TO TWENTY SEVEN AND ONE QUARTER AND BORLAND LOST ONE AND ONE HALF TO THIRTEEN AND SEVEN EIGHTHS BOTH ON NASDAQ DIGITAL SKIDDED THREE AND THREE QUARTERS TO THIRTY TWO AND THREE QUARTERS ELSEWHERE THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX INCHED UP ZERO POINT ZERO FIVE OR ZERO POINT ZERO ONE PERCENT TO FOUR HUNDRED SEVENTY FOUR POINT THREE OH THE DOW JONES EQUITY MARKET INDEX SLIPPED ZERO POINT ONE ONE OR ZERO POINT ZERO TWO PERCENT TO FOUR HUNDRED FORTY EIGHT POINT SIX OH AND THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADDED ONE POINT THREE FOUR OR ZERO POINT TWO EIGHT PERCENT TO FOUR HUNDRED EIGHTY THREE POINT TWO EIGHT THOMAS GALLAGHER DIRECTOR OF CAPITAL COMMITMENT AT OPPENHEIMER AND COMPANY SAID THE MIXED NATURE OF YESTERDAY'S ACTION LEFT HIM UNIMPRESSED QUOTE THIS IS A WARNING SIGN THAT THE MARKET IS RUNNING OUT OF BUYING POWER QUOTE HE SAID PFIZER MEANWHILE TUMBLED FIVE OR SEVEN POINT FOUR PERCENT TO SIXTY TWO AND SEVEN EIGHTHS ON BIG BOARD LEADING VOLUME OF FIVE POINT EIGHT MILLION SHARES AFTER IT REPORTED FOURTH QUARTER NET INCOME OF NINETY CENTS A SHARE COMPARED WITH EIGHTY THREE CENTS LAST YEAR ANALYSTS HAD EXPECTED THE NEW YORK CONCERN TO EARN ABOUT NINETY EIGHT CENTS ACCORDING TO I SLASH B. SLASH E. SLASH S. AMONG OTHER DRUG STOCKS JOHNSON AND JOHNSON EASED THREE QUARTERS TO FORTY TWO AND SEVEN EIGHTHS MERCK AND COMPANY LOST THREE QUARTERS TO THIRTY FIVE AND SEVEN EIGHTHS AMERICAN HOME PRODUCTS DECLINED SEVEN EIGHTHS TO SIXTY FOUR AND ONE QUARTER AND SCHERING PLOUGH FELL ONE AND SEVEN EIGHTHS TO SIXTY FOUR AND THREE EIGHTHS BORLAND'S PLUNGE CAME AFTER THE COMPANY LATE TUESDAY REPORTED THIRD QUARTER EARNINGS OF TWO CENTS A SHARE COMPARED WITH ANALYSTS' ESTIMATES OF ELEVEN CENTS DIGITAL'S FALLOFF WAS ALSO RELATED TO ITS LATEST FINANCIAL RESULTS THE COMPANY POSTED A LOSS OF FIFTY THREE CENTS A SHARE WELL BELOW ANALYSTS' EXPECTATIONS FOR NET INCOME OF SIX CENTS A SHARE SUN MICROSYSTEMS ALSO SUFFERED DESPITE EARNING FORTY SIX CENTS A SHARE IN THE SECOND QUARTER THAT FIGURE FELL TWO CENTS BELOW ANALYSTS' VIEWS SHARES OF COLUMBIA GAS SYSTEM JUMPED THREE AND ONE EIGHTH OR THIRTEEN POINT FIVE PERCENT TO TWENTY SIX AND ONE QUARTER AFTER THE COMPANY ANNOUNCED ITS COLUMBIA GAS TRANSMISSION UNIT FILED ITS CHAPTER ELEVEN REORGANIZATION PLAN IN U. S. BANKRUPTCY COURT COLUMBIA GAS SYSTEMS' REORGANIZATION PLAN IS TO BE FILED AT A LATER DATE BOTH COLUMBIA GAS TRANSMISSION AND ITS PARENT HAVE BEEN OPERATING AS DEBTORS IN POSSESION SINCE JULY THIRTY FIRST NINETEEN NINETY ONE ARMSTRONG WORLD INDUSTRIES GAINED FOUR OR SEVEN POINT FIVE PERCENT TO FIFTY SEVEN AND ONE EIGHTH THE MANUFACTURER OF INTERIOR FURNISHINGS IN LANCASTER PENNSYLVANIA SAID NINETEEN NINETY THREE FOURTH QUARTER SALES WERE UP FOUR PERCENT FROM THE YEAR AGO PERIOD AND WILL BE THE HIGHEST FOR ANY FOURTH QUARTER IN THE COMPANY'S HISTORY ARMSTRONG ALSO SAID EARNINGS FOR THE PERIOD SHOULD BE BETWEEN EIGHTY CENTS AND EIGHTY FIVE CENTS A FULLY DILUTED SHARE WELL ABOVE EXPECTATIONS TWO STOCKS WERE POSITIVELY AFFECTED BY BROKERAGE FIRMS INITIATING COVERAGE WESTCOAST ENERGY IMPROVED ONE AND ONE EIGHTH TO EIGHTEEN AND ONE QUARTER AFTER SMITH BARNEY SHEARSON BEGAN COVERAGE WITH A BUY RATING AND J. AND L. SPECIALTY STEEL GAINED SEVEN EIGHTHS TO SEVENTEEN ON THE HEELS OF A U. B. S. SECURITIES INITIAL BUY RATING MICROSOFT FELL ONE AND THREE EIGHTHS TO EIGHTY THREE AND ONE QUARTER ON NASDAQ BUT RECOVERED TO EIGHTY FOUR AND ONE EIGHTH AFTER THE MARKET CLOSED IN TRADING ON REUTERS HOLDINGS' ELECTRONIC INSTINET SYSTEM THE SOFTWARE COMPANY IN REDMOND WASHINGTON LATE TODAY REPORTED EARNINGS OF NINETY FIVE CENTS A SHARE FOR THE SECOND QUARTER ENDED DECEMBER THIRTY FIRST UP FROM SEVENTY EIGHT CENTS A YEAR AGO HOUGHTON MIFFLIN PLUNGED THIRTEEN PERCENT OR SIX AND SEVEN EIGHTHS TO FORTY SIX AFTER THE COMPANY SAID NINETEEN NINETY FOUR EARNINGS ARE EXPECTED TO BE ABOUT TEN PERCENT LESS THAN ORIGINALLY EXPECTED THE COMPANY ALSO REPORTED FOURTH QUARTER EARNINGS OF TWO CENTS A SHARE SLIGHTLY HIGHER THAN ANALYSTS HAD ESTIMATED SHARES OF SMITH CORONA WERE OFF FIVE EIGHTHS OR NINE POINT SIX PERCENT AT FIVE AND SEVEN EIGHTHS THE TYPEWRITER AND WORD PROCESSOR MANUFACTURER REPORTED SECOND QUARTER EARNINGS OF FIVE CENTS A SHARE COMPARED WITH THIRTEEN CENTS A YEAR EARLIER THE COMPANY ALSO SAID IT REMAINS CAUTIOUS ABOUT THE BALANCE OF THE YEAR ALZA CORPORATION SLIPPED ONE AND THREE QUARTERS TO TWENTY SIX AND ONE QUARTER ON NEWS LATE TUESDAY THAT CYGNUS THERAPEUTIC SYSTEMS SAID IT SUED ALZA FOR VIOLATION OF ANTITRUST LAWS AND FOR DECLARATION OF UNENFORCEABILITY AND INVALIDITY OF PATENT SHAW INDUSTRIES FELL ONE TO TWENTY THE COMPANY REPORTED DISAPPOINTING SECOND QUARTER RESULTS TUESDAY AND SPECULATION WAS THAT THE COMPANY INTENTIONALLY DEFERRED SALES IN THE SECOND QUARTER A SPOKESMAN FOR THE COMPANY SAID SALES WEREN'T DEFERRED TO THE MARCH QUARTER SHAW ALSO BOOSTED ITS QUARTERLY DIVIDEND TO FIVE POINT FIVE CENTS FROM FOUR POINT FIVE CENTS CITY NATIONAL CORPORATION SLIPPED THREE EIGHTHS TO EIGHT DESPITE REPORTING FOURTH QUARTER NET INCOME OF TEN CENTS A SHARE COMPARED WITH INCOME FROM CONTINUING OPERATIONS OF TWO CENTS A SHARE IN THE YEAR AGO PERIOD BEAR STEARNS COMPANIES MARION BOUCHER THIRTY EIGHT WAS NAMED MANAGING DIRECTOR AND SENIOR TELECOMMUNICATIONS ANALYST IN THE HIGH GRADE FIXED INCOME RESEARCH DEPARTMENT OF BEAR STEARNS AND COMPANY THE BROKERAGE UNIT OF THIS INVESTMENT BANKING COMPANY MS. BOUCHER FORMERLY A VICE PRESIDENT WITH EQUITABLE COMPANIES DONALDSON LUFKIN AND JENRETTE INCORPORATED WILL REPORT TO DANIEL SCOTTO WHO LEFT D. L. J. LAST WEEK TO HEAD THE BEAR STEARNS HIGH GRADE FIXEDINCOME RESEARCH DEPARTMENT WAYNE M. MINCEY THIRTY SEVEN YEARS OLD WAS ELECTED TO THE NEW POST OF AREA VICE PRESIDENT CENTRAL AREA OF RYDER CONSUMER TRUCK RENTAL A DIVISION OF THIS TRANSPORTATION SERVICES CONCERN MR. MINCEY HAD BEEN VICE PRESIDENT DEVELOPMENT AND CENTRAL OPERATIONS FOR THE DIVISION HE IS SUCCEEDED BY DAVID S. RUSSELL THIRTY FIVE WHO HAD BEEN DISTRICT MANAGER IN THE NEW YORK SLASH NEW JERSEY AREA JOHN A. ZERCHER FORTY ONE YEARS OLD WAS PROMOTED TO SENIOR VICE PRESIDENT IN CHARGE OF INFORMATION SYSTEMS AND DONALD D. WEHN THIRTY NINE WAS PROMOTED TO SENIOR VICE PRESIDENT FOR MORTGAGE LENDING STRATEGIC PLANNING AND SPECIAL PROJECTS FUNCTIONS AT THIS BANK HOLDING COMPANY BOTH WERE PREVIOUSLY VICE PRESIDENTS IN CHARGE OF THEIR RESPECTIVE AREAS CHASE MANHATTAN CORPORATION SAID ITS BOARD RAISED THE REGULAR QUARTERLY DIVIDEND TEN PERCENT TO THIRTY THREE CENTS A SHARE IT ALSO ANNOUNCED IT WILL GIVE ALL FULL TIME EMPLOYEES STOCK OPTIONS WITH CERTAIN INCENTIVE PROVISIONS THE BANK HOLDING COMPANY SAID THE DIVIDEND INCREASE IS THE FIRST CHANGE SINCE NINETEEN NINETY AND REFLECTS ITS QUOTE SIGNIFICANTLY IMPROVED PERFORMANCE QUOTE THE DIVIDEND IS PAYABLE FEBRUARY FIFTEENTH TO HOLDERS OF RECORD JANUARY THIRTY FIRST UNDER THE STOCK OPTION PLAN EACH FULL TIME EMPLOYEE WILL RECEIVE FOUR HUNDRED STOCK OPTIONS WITH AN EXERCISE PRICE BASED ON YESTERDAY'S AVERAGE SELLING PRICE THE OPTIONS CARRY VESTING PROVISIONS TIED TO FUTURE INCREASES IN CHASE'S STOCK PRICE THE HIGHER THE STOCK PRICE THE SOONER THE EMPLOYEES BECOME VESTED FULL VESTING COULD COME IN AS SOON AS THREE YEARS IF THE STOCK TRADES AT AN AVERAGE OF SIXTY DOLLARS PER SHARE IF THE PERFORMANCE BASED VESTING CONDITIONS AREN'T MET THE OPTIONS VEST AFTER NINE YEARS THE COMPANY SAID THE PROGRAM WOULDN'T CAUSE A CHARGE TO EARNINGS AND THAT DILUTION OF PER SHARE EARNINGS ISN'T EXPECTED TO BE SIGNIFICANT EARLIER THIS WEEK CHASE REPORTED EARNINGS UP MORE THAN FIFTY PERCENT FOR THE YEAR IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CHASE CLOSED AT THIRTY FIVE POINT THREE SEVEN FIVE DOLLARS DOWN THIRTY SEVEN POINT FIVE CENTS THE CLINTON ADMINISTRATION SEEKING TO GAIN POLITICAL FAVOR WITH CALIFORNIA OFFICIALS URGED THE SUPREME COURT TO UPHOLD THE STATE'S AGGRESSIVE POLICY ON TAXING MULTINATIONAL CORPORATIONS UNDER PRESSURE FROM THE WHITE HOUSE THE JUSTICE DEPARTMENT FILED A QUOTE FRIEND OF THE COURT QUOTE BRIEF LATE YESTERDAY SUPPORTING CALIFORNIA IN ONE OF THE MOST CLOSELY WATCHED BUSINESS CASES OF THE NINETEEN NINETY THREE TO NINETEEN NINETY FOUR TERM OF THE SUPREME COURT AT STAKE ARE BILLIONS OF DOLLARS IN TAX REVENUE THAT CALIFORNIA SAYS IT MIGHT HAVE TO REFUND TO MULTINATIONALS IF THE SUPREME COURT RULES AGAINST IT FOLLOWING THROUGH ON A CAMPAIGN PROMISE BY MR. CLINTON TO OFFICIALS IN THE FINANCIALLY STRAPPED STATE THE ADMINISTRATION REVERSED LONG STANDING FEDERAL OPPOSITION TO THE TYPE OF TAX CALIFORNIA IMPOSES THROUGHOUT PROTRACTED LOWER COURT PROCEEDINGS IN THE CASE THE JUSTICE DEPARTMENT HAD FILED BRIEFS WARNING THAT CALIFORNIA'S AGGRESSIVE TAX POLICY HAS ANGERED U. S. TRADING PARTNERS AND COULD CAUSE RETALIATORY ACTIONS BY FOREIGN GOVERNMENTS THAT WOULD HURT U. S. COMPANIES AS RECENTLY AS THE FALL OF NINETEEN NINETY TWO THE DEPARTMENT FILED A BRIEF WITH THE SUPREME COURT SUPPORTING A CHALLENGE TO THE CALIFORNIA TAXING METHOD BY BARCLAYS BANK P. L. C. YESTERDAY HOWEVER THE JUSTICE DEPARTMENT TOLD THE SUPREME COURT THAT BARCLAYS' CLAIM MUST FAIL THE ADMINISTRATION SAID THAT AN ANALOGOUS CLAIM BY A U. S. BASED MULTINATIONAL COLGATE PALMOLIVE COMPANY ALSO SHOULD BE DENIED THE CENTRAL ISSUE IN THE CASE IS CALIFORNIA'S POLICY OF TAXING A PORTION OF THE WORLD WIDE INCOME OF MULTINATIONAL COMPANIES INCLUDING PARENT COMPANIES AND OTHER AFFILIATES BASED ON A FORMULA REFLECTING THE AMOUNT OF BUSINESS THE FIRMS DO IN CALIFORNIA IN CONTRAST THE FEDERAL GOVERNMENT AND MOST OTHER STATES TREAT THE U. S. OPERATIONS OF MULTINATIONALS AS SEPARATE FROM THEIR AFFILIATES OVERSEAS IN AN EARLIER BRIEF ATTACKING THE CALIFORNIA TAX THE JUSTICE DEPARTMENT SAID THE SO CALLED WORLD WIDE UNITARY APPROACH HAS CREATED AN IRRITANT IN THE COMMERCIAL RELATIONS OF THE UNITED STATES AND ITS MAJOR TRADING PARTNERS IN YESTERDAY'S BRIEF THE JUSTICE DEPARTMENT SAID THAT AS OF NINETEEN SEVENTY SEVEN THE TAX YEAR IN QUESTION IN THE BARCLAYS PORTION OF THE CASE EXECUTIVE BRANCH OFFICIALS HAD EXPRESSED A PREFERENCE FOR TREATING U. S. OPERATIONS SEPARATELY FOR TAX PURPOSES BUT IT SAID FEDERAL OFFICIALS HADN'T INDICATED THAT STATE USE OF THE WORLD WIDE UNITARY APPROACH WOULD BE INCOMPATIBLE WITH U. S. INTERNATIONAL AGREEMENTS OR THAT THERE NECESSARILY OUGHT TO BE UNIFORM TAX POLICIES ON THE PART OF INDIVIDUAL STATES RONNIE COSPER FIFTY YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENT OF MANUFACTURING OPERATIONS MR. COSPER MOST RECENTLY WAS DIRECTOR OF OPERATIONS AT THIS MAKER OF PRINTED CIRCUITBOARD ASSEMBLIES AND ELECTRONIC PRODUCTS AND SYSTEMS ROBERT F. CORROON SEVENTY ONE FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CORROON AND BLACK CORPORATION WHICH MERGED WITH WILLIS FABER OF LONDON IN NINETEEN NINETY TO BECOME WILLIS CORROON GROUP P. L. C. MONDAY IN GREENWICH CONNECTICUT APPLE COMPUTER INCORPORATED SAID IT NAMED JAMES J. BUCKLEY PRESIDENT OF ITS U. S. MARKETING ARM APPLE U. S. A. TO SUCCEED ROBERT PUETTE WHO WAS FORCED OUT LAST OCTOBER MR. BUCKLEY FORTY THREE YEARS OLD WHO HAS BEEN WITH APPLE FOR NINE YEARS AND MOST RECENTLY RAN APPLE U. S. A.'S HIGHER EDUCATION DIVISION FACES DAUNTING CHALLENGES APPLE IS SUFFERING FROM A PAINFUL PRICE WAR WITH OTHER PERSONAL COMPUTER MAKERS AND ITS FLAGSHIP MACINTOSH LINE SEEMS TO HAVE LOST SOME OF ITS MARKET APPEAL ITS RECENTLY INTRODUCED PERSONAL DIGITAL ASSISTANT THE NEWTON MESSAGEPAD HASN'T SOLD AS WELL AS EXPECTED APPLE HOPES TO IGNITE SALES THIS SUMMER WHEN IT UNVEILS A NEW GENERATION OF PERSONAL COMPUTERS CONTAINING THE HIGH CAPACITY POWERPC CHIP MEANWHILE MR. BUCKLEY MUST FIND WAYS TO PERSUADE CUSTOMERS TO BUY THE EXISTING QUADRA LINE OF MACINTOSH PRODUCTS RATHER THAN AWAIT ITS MORE POTENT SUCCESSORS MR. BUCKLEY WILL REPORT TO IAN DIERY EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF APPLE'S PERSONAL COMPUTER DIVISION BEFORE JOINING APPLE HE HELD MARKETING POSITIONS AT THE OFFICE SYSTEMS DIVISIONS OF EXXON CORPORATION AND XEROX CORPORATION MR. PUETTE FIFTY TWO WAS THE VICTIM OF A HOUSECLEANING BY MICHAEL SPINDLER WHO BECAME CHIEF EXECUTIVE OFFICER LAST JUNE AFTER JOHN SCULLEY LEFT THE COMPANY UNDER PRESSURE FROM APPLE'S BOARD WILLIAM H. WILLIS WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT AND PRESIDENT OF THE SPECIAL MARKETS GROUP OF THIS PUBLISHER AND DIRECT MAIL MARKETER MR. WILLIS FORTY TWO YEARS OLD WAS MOST RECENTLY EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER AT THE OGDEN INDUSTRIAL SERVICES UNIT OF OGDEN SERVICES CORPORATION BY A MARGIN OF MORE THAN TWO TO ONE MEMBERS OF THE CHICAGO BOARD OF TRADE VOTED TO PAY TWENTY SIX MILLION DOLLARS FOR AN ADJOINING BUILDING THAT THE EXCHANGE PLANS TO USE TO EXPAND ITS FACILITIES THE BADLY NEEDED EXPANSION WHICH WILL INCLUDE A NEW SIXTY THOUSAND SQUARE FOOT TRADING FLOOR THAT SPANS A CHICAGO STREET IS EXPECTED TO COST ONE HUNDRED SEVENTY ONE POINT FIVE MILLION DOLLARS QUOTE THIS HAS BEEN A HOTLY CONTESTED ISSUE AND I AM DELIGHTED THAT OUR MEMBERSHIP HAD THE CONFIDENCE TO SUPPORT THIS PROPOSAL QUOTE SAID C. B. O. T. CHAIRMAN PATRICK H. ARBOR THE SLIDE IN CRUDE OIL PRICES TO FIVE YEAR LOWS HAS CAUSED INDUSTRY EARNINGS TO PLUNGE DRILLING PLANS TO BE CUT AND IMPAIRED THE BORROWING ABILITY OF A HOST OF COMPANIES THE TURMOIL WAS HIGHLIGHTED YESTERDAY WHEN STANDARD AND POOR'S CORPORATION A UNIT OF MCGRAW HILL INCORPORATED OF NEW YORK SAID THAT OVER THE NEXT NINETY DAYS IT WOULD CONSIDER REDUCING THE DEBT AND PREFERRED SECURITIES RATINGS OF ELEVEN OF THE ONE HUNDRED OR SO OIL COMPANIES THAT IT FOLLOWS UNDER REVIEW AND PLACED ON WHAT THE RATINGS CONCERN CALLS CREDITWATCH IS ROUGHLY TWENTY BILLION DOLLARS OF SECURITIES THE LIST INCLUDES LARGE U. S. OIL COMPANIES SUCH AS ATLANTIC RICHFIELD COMPANY OF LOS ANGELES BIG OVERSEAS COMPANIES SUCH AS NORSK HYDRO S. A. OF OSLO AND SMALL OIL PRODUCTION COMPANIES SUCH AS GERRITY OIL AND GAS CORPORATION OF DENVER BEYOND THAT S. AND P. NEGATIVELY REVISED ITS OUTLOOK ON ANOTHER TWENTY FIVE BILLION DOLLARS OF SECURITIES OF EIGHT OIL COMPANIES AN ACTION LESS DRASTIC THAN PLACING THESE COMPANIES ON CREDITWATCH BUT ONE THAT NEVETHELESS MEANS THAT IF THE RATING CHANGES IT IS LIKELY TO BE LOWER THE LIST INCLUDED SOME OIL SERVICE COMPANIES THAT WOULD BE HURT BY REDUCED DRILLING SUCH AS HALLIBURTON COMPANY OF DALLAS AND NOBLE DRILLING CORPORATION OF HOUSTON S. AND P. SAID THE INDUSTRYWIDE REVIEW WAS PROMPTED BY A CUT IN S. AND P'S OIL PRICE FORECAST THROUGH NINETEEN NINETY FIVE ANDREA ESPOSITO A DIRECTOR IN THE RATINGS CONCERN'S OIL AND GAS GROUP SAID PRICES WILL RUN IN A FOURTEEN DOLLAR TO EIGHTEEN DOLLARS A BARREL RANGE DOWN FROM AN EARLIER ESTIMATE OF EIGHTEEN DOLLARS TO TWENTY TWO DOLLARS QUOTE THROUGH NINETEEN NINETY FOUR AND POSSIBLY THROUGH NINETEEN NINETY FIVE THE AVERAGE WILL HOVER IN THE LOWER END QUOTE SHE SAYS ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR FEBRUARY DELIVERY YESTERDAY SETTLED AT FIFTEEN DOLLARS AND FORTY CENTS A BARREL UP THIRTY FIVE CENTS BY SOME MEASURES THE OIL INDUSTRY HASN'T HAD A TRULY GOOD YEAR SINCE THE EARLY NINETEEN EIGHTIES WHEN PRICES WITHOUT ADJUSTING FOR INFLATION WERE THIRTY DOLLARS AND HIGHER COMPANIES HAVE GONE THROUGH ONE PAINFUL RESTRUCTURING AFTER ANOTHER EVER SINCE AND COMMENTS FROM THE GRITTY OIL FIELDS AROUND THE COUNTRY TO THIS CITY'S SKYSCRAPERS REFLECT A MIX OF EMOTIONS RANGING FROM EXASPERATION TO FORCED PRAGMATISM WE HAVE REALLY TURNED THIS COMPANY AROUND IN THE PAST EIGHTEEN MONTHS SAYS JAMES PAYNE CHIEF EXECUTIVE OF SANTA FE ENERGY RESOURCES INCORPORATED IN HOUSTON NOTING THAT HE HAD ENGINEERED THE COMPANY TO RECORD DOUBLE DIGIT GROWTH IN CASH FLOW AND EARNINGS WHEN OIL WAS AT EIGHTEEN DOLLARS A BARREL HERE WE WAKE UP WITH FIFTEEN DOLLARS OIL AND AT FIFTEEN DOLLARS WE HUNKER DOWN AND MAKE SURE THE COMPANY WILL BE HERE ANOTHER DAY HE SAYS OIL PRICES HAVE FALLEN ABOUT ONE THIRD SINCE MARCH NINETEEN NINETY THREE WITH HALF THE DECLINE COMING AFTER OCTOBER THE SLUGGISH WORLD ECONOMY HAS KEPT DEMAND FAIRLY FLAT WHILE SUPPLIES HAVE INCREASED THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HAS NOT CURBED ITS OIL PRODUCTION WHILE OIL OUTPUT HAS INCREASED IN OTHER PARTS OF THE WORLD SUCH AS THE NORTH SEA AND LATIN AMERICA BEYOND THAT IRAQ'S EVENTUAL RE ENTRY INTO THE WORLD'S CRUDE OIL MARKETS IS BOUND TO FURTHER FLOOD ALREADY BRIMMING SUPPLIES AND WILL MAKE OPEC PRODUCTION CUTBACKS ALWAYS DIFFICULT FOR THE CARTEL TO AGREE ON AND MAINTAIN FOR ANY PERIOD OF TIME ALL THE MORE IMPORTANT TO THE INDUSTRY WITHOUT CUTBACKS PRICES COULD PLUNGE FURTHER MOST INDUSTRY EXECUTIVES AGREE WHAT'S CHANGED ONLY RECENTLY HAS BEEN THE PERCEPTION AMONG MANY COMPANIES A FEW MONTHS AGO THAT THE PRICE PLUNGE WAS TEMPORARY TO A MOROSE BELIEF THAT AN UGLY PRICE ENVIRONMENT WILL BE HERE FOR SOME TIME FOR INSTANCE A SURVEY TAKEN IN NOVEMBER AND DECEMBER BY THE NEW YORK SECURITIES FIRM SALOMON BROTHERS INCORPORATED OF TWO HUNDRED EIGHTY OIL COMPANIES FOUND THAT THE INDUSTRY PLANNED TO BOOST ITS WORLD WIDE EXPLORATION AND PRODUCTION SPENDING TO FIFTY FOUR POINT EIGHT FOUR BILLION DOLLARS UP FOUR POINT ONE PERCENT FROM NINETEEN NINETY THREE SOMEWHAT SKEPTICAL OF ITS OWN SURVEY RESULTS AT THE TIME SALOMON NOW SAYS IT EXPECTS THAT SPENDING THIS YEAR WILL DROP FIVE PERCENT EARLIER THIS WEEK ORYX ENERGY COMPANY OF DALLAS SAID IT SUSPENDED ITS QUARTERLY DIVIDEND AND WAS CUTTING ITS CAPITAL SPENDING TWENTY PERCENT BECAUSE OF WEAK CRUDE PRICES ORYX SAID THAT AT LEAST SEVENTY PERCENT OF ITS OUTLAYS WILL GO TO DEVELOPMENT RATHER THAN EXPLORATION PROJECTS THAT WILL BRING IN REVENUE FASTER WITH LONG TERM DEBT OF ONE POINT SEVEN SEVEN BILLION DOLLARS THE COMPANY WAS ONE OF THE ELEVEN CITED BY S. AND P. FOR A POSSIBLE RATINGS DOWNGRADE OUTSIDE OF THE OIL INDUSTRY OF COURSE LOW PRICES ARE WELCOME NEWS GASOLINE PRICES HAVE PLUNGED TO THEIR LOWEST LEVEL IN NEARLY TWO YEARS AND REGULAR UNLEADED CAN BE FOUND AT MANY STATIONS FOR LESS THAN ONE DOLLAR A GALLON DESPITE LAST YEAR'S FOUR POINT THREE CENT INCREASE IN THE FEDERAL GASOLINE TAX IN ITS MONTHLY SURVEY THE AMERICAN AUTOMOBILE ASSOCIATION SAYS THE AVERAGE PRICE NATIONWIDE IS DOWN TO ONE DOLLAR AND SIX CENTS A GALLON THREE POINT ONE CENTS BELOW DECEMBER IN ADDITION THE COMMERCE DEPARTMENT SAID THE U. S. TRADE DEFICIT NARROWED TO TEN POINT ONE SEVEN BILLION DOLLARS IN NOVEMBER FROM TEN POINT NINE BILLION DOLLARS IN OCTOBER IN LARGE PART BECAUSE OF THE PLUNGE IN ENERGY PRICES THE VOLUME OF PETROLEUM AND RELATED PRODUCTS IMPORTED IN NOVEMBER FELL FOUR POINT ONE PERCENT THE AGENCY SAID SANTA FE ENERGY WITH DEBT OF ABOUT FIVE HUNDRED SIXTY MILLION DOLLARS WAS ALSO PLACED ON CREDITWATCH AND ITS REACTION TO LOWER OIL PRICES WHILE MORE EXTREME THAN OTHER COMPANIES IS FAIRLY TYPICAL MR. PAYNE THE CHIEF EXECUTIVE SAID THE COMPANY WOULD HAVE SPENT ABOUT TWO HUNDRED FIFTY MILLION DOLLARS THIS YEAR DRILLING OIL WELLS AT EIGHTEEN DOLLARS OIL BUT WITH REDUCED CASH FLOW FROM LOWER PRICES SANTA FE EXPECTS TO SPEND NINETY MILLION DOLLARS TO ONE HUNDRED THIRTY MILLION DOLLARS HE SAYS THE FIRST PRIORITY WILL BE TO PAY PRINCIPAL AND INTEREST ON ITS DEBT MR. PAYNE SAYS WHAT'S LEFT OVER WE'LL SPEND ON THE VERY BEST PROJECTS WE HAVE HE SAYS ADDING THAT THE COMPANY HAS A NUMBER OF PROSPECTS IT CAN DRILL WHERE IT EXPECTS TO GET A FIFTEEN PERCENT RATE OF RETURN EVEN AT FIFTEEN DOLLARS OIL THE REST HE SAYS WE'LL SAVE THEM AND WE'LL GO GET THEM WHEN PRICES GO UP ABOUT THREE WEEKS AGO SANTA FE BROUGHT IN CONSULTANTS MCKINSEY AND COMPANY FOR ADVICE ON HOW TO RUN ITS ADMINISTRATIVE FUNCTIONS MORE EFFICIENTLY SANTA FE ALSO HIRED ANDERSEN CONSULTING GROUP TO LOOK FOR WAYS TO IMPROVE ITS COMPUTER INFORMATION SYSTEMS THE PLUNGE IN OIL PRICES HAS REDUCED ENERGY COMPANY EARNINGS ALMOST ACROSS THE BOARD EUGENE NOWAK AN OIL STOCK ANALYST AT DEAN WITTER REYNOLDS INCORPORATED IN NEW YORK PREDICTS THAT OPERATING PROFITS OF THE DOZEN OR SO LARGEST U. S. BASED OIL COMPANIES WILL DROP ABOUT TWENTY PERCENT IN THE FOURTH QUARTER FROM A YEAR EARLIER MOBIL CORPORATION OF FAIRFAX VIRGINIA HAS ALREADY SAID IT WILL RECORD A TWO HUNDRED FIFTY MILLION DOLLAR NONCASH CHARGE TO REFLECT THE DECLINE IN THE VALUE OF ITS PETROLEUM INVENTORIES IN THE PERIOD THE LARGEST OF THE WORLD'S OIL COMPANIES TEND TO OWN REFINERIES AND SERVICE STATIONS IN ADDITION TO OIL FIELDS AS A RESULT THEIR PROFIT DECLINES ARE SOMEWHAT TEMPERED BECAUSE OIL IS THE FEEDSTOCK FOR THE REFINERIES AND MARKETING NETWORKS AND THERE'S USUALLY A DELAY BETWEEN A DROP IN THE CRUDE PRICE AND A DECLINE IN THE PRICE OF END PRODUCTS SUCH AS GASOLINE ONE OF THE FEW INDUSTRY BRIGHT SPOTS IN RECENT MONTHS HAS BEEN THE PRICE OF NATURAL GAS STRONG DEMAND ACCELERATED BY THE CURRENT ARCTIC TEMPERATURES IN MUCH OF THE U. S. HAS KEPT GAS PRICES STRONG RELATIVE TO OIL S. AND P. FOR INSTANCE DIDN'T LOWER ITS GAS PRICE FORECAST FOR THE NEXT TWO YEARS LIKE IT DID OIL EXPECTING PRICES TO RUN IN THE RANGE OF ONE DOLLAR AND EIGHTY CENTS TO TWO DOLLARS AND TWENTY CENTS A THOUSAND CUBIC FEET IN A DESPERATE ATTEMPT TO CONTROL ESCALATING VIOLENCE HERE MAYOR CESAR MAIA ISSUED A DECREE PROHIBITING THE MANUFACTURE AND SALE OF GUNS AND AMMUNITION QUOTE WE MUST DISARM THE POPULATION OF RIO DE JANEIRO WHAT WE HAVE MOST IN RIO ARE ARMS HE TOLD A NEWS CONFERENCE WE HOPE STATE AND FEDERAL GOVERNMENTS WILL TAKE SIMILAR MEASURES TO SUPPRESS THE SALE AND CIRCULATION OF ARMS CITY OFFICIALS WILL MEET WITH MAYORS OF NEIGHBORING TOWNS TOMORROW TO URGE THEM TO ADOPT SIMILAR MEASURES POLICE HAVE FOUGHT A SERIES OF BLOODY BATTLES WITH DRUG TRAFFICKERS IN RIO'S SHANTYTOWNS IN RECENT MONTHS UNCOVERING ARSENALS OF SOPHISTICATED WEAPONS MANY SMUGGLED IN FROM THE U. S. AND OTHER COUNTRIES TO PROTECT THEMSELVES AGAINST CRIME MORE AND MORE RIO RESIDENTS ARE BUYING GUNS STUDIES SHOW ACCORDING TO THE POLICE SALES OF FIREARMS ROSE TO FIFTEEN THOUSAND SIX HUNDRED FORTY FIVE IN NINETEEN NINETY THREE FROM FOURTEEN THOUSAND SEVEN HUNDRED SIXTY EIGHT IN NINETEEN NINETY TWO THE O. DIA NEWSPAPER REPORTED THE CITY ISSUED SEVEN FIFTY SEVEN LICENSES LAST YEAR UP FROM FOUR HUNDRED FOUR IN NINETEEN NINETY TWO P. I. PARENT CORPORATION TO BE RENAMED PLANTRONICS INCORPORATED SAID IT WOULD ISSUE THREE MILLION FIVE HUNDRED EIGHTY EIGHT THOUSAND COMMON SHARES IN AN INITIAL PUBLIC OFFERING AT TWELVE DOLLARS AND FIFTY CENTS A SHARE PROCEEDS FROM THE STOCK SALE AND A CONCURRENT EIGHTY FIVE MILLION DOLLAR OFFERING OF SENIOR NOTES WILL BE USED TO REPAY THE SANTA CRUZ CALIFORNIA COMPANY'S INDEBTEDNESS CITICORP VENTURE CAPITAL LIMITED WILL BECOME THE COMPANY'S BIGGEST STOCKHOLDER WITH A THIRTY SIX PERCENT STAKE THE COMPANY MAKES TELEPHONE HEADSETS CO MANAGERS OF THE OFFERING ARE SMITH BARNEY SHEARSON INCORPORATED AND PRUDENTIAL SECURITIES INCORPORATED INCUMBENTS ARE ENDLESSLY CREATIVE IN TRYING TO AVOID THE TERM LIMIT LAWS THAT PASS EVERYWHERE THEY'RE ON THE BALLOT BUT SAVVY VOTERS AREN'T LETTING THEM GET AWAY WITH IT WHEN HOUSTON VOTERS APPROVED LOCAL TERM LIMITS IN NINETEEN NINETY ONE CITY COUNCIL MEMBERS CREATED A LOOPHOLE THAT ALLOWED THEM TO RUN AGAIN IF THEY COLLECTED A CERTAIN NUMBER OF VOTER SIGNATURES CITIZEN GROUPS PUT A MEASURE ON LAST SATURDAY'S BALLOT TO CLOSE THAT ESCAPE HATCH THE CITY COUNCIL THEN PUT A COMPETING PROPOSAL ON THE BALLOT TO SIMPLY REPEAL THE TERM LIMIT LAW THE RESULTS WERE UNAMBIGUOUS SEVENTY THREE PERCENT OF VOTERS FAVORED CLOSING THE TERM LIMIT LOOPHOLE AN EVEN LARGER SEVENTY NINE PERCENT MAJORITY OPPOSED ENDING TERM LIMITS IT'S BECOMING CLEAR VOTERS DON'T JUST FAVOR LIMITS ON POLITICAL TENURE BECAUSE THEY'RE MAD AT CONGRESS THEY BELIEVE TERM LIMITS ARE A NECESSARY CHECK ON AN ENTRENCHED POLITICAL CLASS AT ALL LEVELS OF GOVERNMENT DUN AND BRADSTREET CORPORATION SAID IT WILL TAKE A ONE HUNDRED SIXTY SEVEN MILLION DOLLAR CHARGE FOR THE NINETEEN NINETY THREE FOURTH QUARTER TO CLOSE OFFICES AND CONSOLIDATE SEVERAL FUNCTIONS AS A RESULT THE BIG WESTPORT CONNECTICUT INFORMATION SERVICES COMPANY SAID IT EXPECTS TO REPORT FOURTH QUARTER EARNINGS OF TWENTY SIX MILLION DOLLARS OR FIFTEEN CENTS A SHARE SHARPLY LOWER THAN THE ONE HUNDRED SEVENTY SIX MILLION DOLLARS OR NINETY NINE CENTS A SHARE IT EARNED A YEAR EARLIER BUT THE COMPANY SAID THAT EXCLUDING THE CHARGE EARNINGS FOR THE QUARTER WOULD HAVE RISEN NINE POINT THREE PERCENT TO ONE HUNDRED NINETY THREE MILLION DOLLARS OR ONE DOLLAR AND TEN CENTS A SHARE REVENUE INCREASED TWO POINT FOUR PERCENT TO ONE POINT THREE TWO BILLION DOLLARS FROM ONE POINT TWO NINE BILLION DOLLARS D. AND B. SAID THE STEPS SHOULD PRODUCE ANNUAL SAVINGS OF ABOUT ONE HUNDRED MILLION DOLLARS WITHIN THE NEXT FEW YEARS THE CHANGES INCLUDE REDUCING THE NUMBER OF D. AND B. DATA CENTERS FROM TWENTY SEVEN LARGELY INDEPENDENT CENTERS WORLDWIDE TO QUOTE SEVERAL QUOTE INTEGRATED PROCESSING SITES ABLE TO HANDLE THE COMPANY'S NEEDS AT LOWER COST REDUCING REAL ESTATE COSTS BY SHARING FACILITIES IN MAJOR CITIES IN THE U. S. AND EUROPE CONSOLIDATING BACK OFFICE ACCOUNTING FUNCTIONS INTO ONE CENTER CONSOLIDATING INTERNATIONAL ACCOUNTING OPERATIONS INTO SEVERAL CENTERS AND CONVERTING TO A SINGLE ACCOUNTING SYSTEM ROBERT E. WEISSMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID SAVINGS FROM THESE MEASURES WILL BE USED TO ACCELERATE REVENUE GROWTH WITH DEVELOPMENT OF NEW PRODUCTS ACQUISITIONS AND OTHER EXPANSION MOVES THE CHARGE TWO HUNDRED FIFTY SIX MILLION DOLLARS ON A PRETAX BASIS REFLECTED THREE HUNDRED THREE MILLION DOLLARS FOR RESTRUCTURING PARTIALLY OFFSET BY ONE TIME GAINS OF TWENTY SIX MILLION DOLLARS FROM A DIVESTITURE AND TWENTY ONE MILLION DOLLARS FROM THE INITIAL PUBLIC OFFERING OF ITS MAJORITY OWNED GARTNER GROUP D. AND B. SAID THE NEWEST ROUND OF RESTRUCTURINGS WOULDN'T INCLUDE ANY NEW WORKFORCE REDUCTIONS LAST YEAR THE COMPANY SAID IT WOULD CUT SEVERAL THOUSAND JOBS AS PART OF A COST CUTTING EFFORT THE COMPANY SAID THE CONTINUING EFFORT TO CUT COSTS AND IMPROVE PERFORMANCE IS BEGINNING TO IMPROVE OPERATING MARGINS FOR NINETEEN NINETY FOUR THE COMPANY ANTICIPATES PERSHARE EARNINGS WILL INCREASE MORE THAN EIGHT POINT FOUR PERCENT FROM NINETEEN NINETY THREE'S PRELIMINARY OPERATING PROFIT OF THREE DOLLARS AND THIRTY SIX CENTS A SHARE THE OPERATING PROFIT EXCLUDES ACCOUNTING CHARGES AND THE FOURTH QUARTER RESTRUCTURING CHARGE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY D. AND B. SHARES DROPPED TWELVE POINT FIVE CENTS TO SIXTY ONE POINT SIX TWO FIVE DOLLARS PENNZOIL COMPANY SAID THE INTERNAL REVENUE SERVICE WILL SEEK NINE HUNDRED FIFTY SIX POINT FIVE MILLION DOLLARS IN TAXES AND INTEREST ON THE THREE BILLION DOLLAR SETTLEMENT PENNZOIL RECEIVED FROM TEXACO INCORPORATED IN NINETEEN EIGHTY EIGHT THE LONG AWAITED I. R. S. POSITION ON PENNZOIL'S NINETEEN EIGHTY EIGHT TAXES CAME AFTER A LENGTHY AUDIT THAT BASICALLY REJECTED PENNZOIL'S POSITION ON HOW THE PROCEEDS OF ITS TEXACO SETTLEMENT SHOULD BE TAXED THE I. R. S. DECISION IN ESSENCE REQUIRES PENNZOIL TO RESTATE ITS NINETEEN EIGHTY EIGHT RESULTS TO INCLUDE A LARGE PORTION OF THE SETTLEMENT AS TAXABLE INCOME FOR THAT YEAR TEXACO PAID PENNZOIL TO SETTLE BITTER LITIGATION THAT HAD RESULTED IN AN HISTORIC ELEVEN BILLION DOLLARS JURY AWARD TO PENNZOIL AND A FILING FOR TEXACO UNDER CHAPTER ELEVEN OF THE U. S. BANKRUPTCY CODE JAMES PATE PENNZOIL'S CHIEF EXECUTIVE OFFICER SAID QUOTE PENNZOIL HAS THE FINANCIAL FLEXIBILITY TO DEAL WITH ANY EVENTUALITY THAT MAY OCCUR IN CONNECTION WITH THIS DISPUTE INCLUDING THE POSSIBILITY OF PAYING ANY TAX ASSESSMENT AND SUING FOR A REFUND IF PENNZOIL IS NOT ABLE TO RESOLVE THE MATTER THROUGH DISCUSSIONS WITH THE I. R. S. QUOTE PENNZOIL STRESSED THAT IT DOESN'T HAVE TO MAKE ANY PAYMENTS AT THE MOMENT AND THAT IT PLANS TO FORMALLY PROTEST THE PROPOSED TAX DEFICIENCY WITHIN THIRTY DAYS THE COMPANY SAID THE APPEALS PROCESS WITHIN THE I. R. S. COULD TAKE AS LONG AS SIX MONTHS A PENNZOIL SPOKESMAN SAID THAT ALTHOUGH THE COMPANY HAS HAD CONTACT WITH I. R. S. AGENTS DURING THE AUDIT THE APPEAL WILL BE PENNZOIL'S FIRST OPPORTUNITY TO FULLY PRESENT THE LEGAL BASIS FOR THE COMPANY'S TAX POSITION THE SPOKESMAN SAID PENNZOIL WOULD CHALLENGE THE I. R. S. POSITION IN COURT IF NECESSARY ADDING WE FEEL CONFIDENT ABOUT OUR LEGAL POSITION AND FEEL THE MATTER CAN BE RESOLVED IN AN ACCEPTABLE MANNER I. R. S. OFFICIALS COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY PENNZOIL DISCLOSED THE I. R. S.'S POSITION AFTER THE MARKETS CLOSED ITS SHARES ENDED AT FIFTY FIVE DOLLARS AND FIFTY CENTS UP SEVENTY FIVE CENTS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE AMOUNT OF THE PROPOSED I. R. S. LEVY IS HUGE FOR A COMPANY PENNZOIL'S SIZE IN THE FIRST NINE MONTHS OF NINETEEN NINETY THREE PENNZOIL HAD NET INCOME OF FORTY NINE POINT FOUR MILLION DOLLARS OR ONE DOLLAR AND TWENTY ONE CENTS A SHARE ON REVENUE OF TWO BILLION DOLLARS THE DISPUTE STEMS FROM PENNZOIL'S NINETEEN EIGHTY FOUR AGREEMENT TO ACQUIRE A PORTION OF GETTY OIL COMPANY WHICH TEXACO ENDED UP BUYING IN ITS ENTIRETY PENNZOIL SUED FOR TORTIOUS INTERFERENCE WON ITS HISTORIC JUDGMENT AND IN NINETEEN EIGHTY EIGHT RECEIVED THE THREE BILLION DOLLAR SETTLEMENT FROM TEXACO OVER THE NEXT THREE YEARS PENNZOIL PAID TAXES ON EIGHT HUNDRED MILLION DOLLARS OF THE SETTLEMENT AND USED THE REST TWO POINT TWO BILLION DOLLARS TO BUY CHEVRON CORPORATION STOCK PENNZOIL SAID IT WILL ARGUE TO THE I. R. S. THAT ITS INVESTMENT IN CHEVRON STOCK IS IN EFFECT AN INVESTMENT IN REPLACEMENT PROPERTY SIMILAR TO THE PROPERTY LOST TO TEXACO PENNZOIL MAINTAINS THAT A PIECE OF THE I. R. S. TAX CODE CALLED SECTION ONE THOUSAND THIRTY THREE ALLOWS PENNZOIL TO RECEIVE CASH FOR ITS LOST PROPERTY AND NOT HAVE TO TREAT IT AS TAXABLE INCOME IF THE COMPANY REINVESTS THE PROCEEDS IN A SIMILAR PROPERTY PENNZOIL IS EXPECTED TO ARGUE THAT SINCE CHEVRON LIKE GETTY IS A LARGE OIL COMPANY WITH SIZABLE ASSETS IN CALIFORNIA THE PURCHASE OF CHEVRON STOCK FITS THE DEFINITION IN ITS FIRST SALVO THE I. R. S. DISAGREED THE AGENCY SAID THAT PENNZOIL SHOULD INCREASE ITS NINETEEN EIGHTY EIGHT INCOME BY TWO POINT TWO BILLION DOLLARS AND THAT IT OWES TAXES ON THAT SUM OF FIVE HUNDRED FIFTY POINT NINE MILLION DOLLARS PENNZOIL ESTIMATED THAT INTEREST ON THE PROPOSED TAX WOULD BE ABOUT TWO HUNDRED THIRTY FOUR POINT THREE MILLION DOLLARS IN ADDITION THE I. R. S. SEEKS TO DISALLOW ABOUT THREE HUNDRED SIXTY SIX MILLION DOLLARS OF DEDUCTIONS THAT PENNZOIL TOOK FOR LITIGATION AND RELATED EXPENSES ON ITS NINETEEN EIGHTY EIGHT TAX RETURN IN CONNECTION WITH THE TEXACO SUIT PENNZOIL SAID THAT ADDS ANOTHER ONE HUNDRED TWENTY FOUR POINT SIX MILLION DOLLARS IN DEFICIENT TAXES PENNZOIL SAID WITH INTEREST OF FORTY SIX POINT SEVEN MILLION DOLLARS ON THAT DEFICIENCY PENNZOIL HAS SOLD AND EXCHANGED MORE THAN TWO THIRDS OF ITS STAKE IN CHEVRON WHICH AT ONE POINT AMOUNTED TO A NINE POINT FOUR PERCENT INTEREST IN THE COMPANY THE LAST TRANSACTION WAS A SALE LAST NOVEMBER OF CHEVRON STOCK THAT RESULTED IN PROCEEDS TO PENNZOIL OF SEVEN HUNDRED TWENTY ONE MILLION DOLLARS AT THE TIME A NUMBER OF ANALYSTS SPECULATED THAT PENNZOIL SOLD THE SHARES BECAUSE IT FEARED AN ADVERSE I. R. S. RULING UNITED TECHNOLOGIES CORPORATION SAID IT WILL ISSUE TWO SEPARATE CLASSES OF STOCK IN ITS AUTOMOTIVE UNIT IN A MOVE THAT WOULD HELP IT RAISE GROSS PROCEEDS OF SEVEN HUNDRED NINETY ONE MILLION DOLLARS TO EIGHT HUNDRED THIRTY MILLION DOLLARS THE HARTFORD CONNECTICUT COMPANY SAID IT WILL USE THE MONEY TO REDUCE DEBT INCREASE ITS DIVIDEND AND EXPAND ITS OTHER BUSINESSES THE OFFERING WILL CONSIST OF AS MANY AS NINETEEN POINT SIX MILLION SHARES OF U. T. A. CLASS A COMMON STOCK THE COMPANY SAID THE CLASS A SHARES ARE EXPECTED TO GIVE IT BETWEEN FORTY PERCENT AND FORTY FOUR PERCENT EQUITY INTEREST IN THE AUTOMOTIVE UNIT UNITED TECHNOLOGIES AUTOMOTIVE OR U. T. A. BUT UNITED TECHNOLOGIES WILL RETAIN CONTROL THROUGH AN ISSUE OF CLASS B. COMMON STOCK WHICH WILL REPRESENT BETWEEN FIFTY SIX PERCENT AND SIXTY PERCENT OF THE EQUITY INTEREST OF U. T. A. UNITED TECHNOLOGIES WILL HAVE THE POWER TO ELECT EIGHTY PERCENT OF THE DIRECTORS OF U. T. A. UNITED TECHNOLOGIES' AUTOMOTIVE UNIT BASED IN DEARBORN MICHIGAN HAD AN OPERATING PROFIT OF ONE HUNDRED ELEVEN MILLION DOLLARS ON SALES OF TWO POINT THREE EIGHT BILLION DOLLARS IN NINETEEN NINETY TWO THE DIVISION MAKES ELECTRICAL AND INTERIOR TRIM COMPONENTS ROBERT F. DANIELL CHAIRMAN OF UNITED TECHNOLOGIES SAID THE MARKETS CUSTOMERS AND PRODUCT OFFERINGS OF THE AUTOMOTIVE DIVISION QUOTE ARE OUTSIDE OF THE CORE AEROSPACE AND BUILDING SYSTEMS BUSINESSES QUOTE OF THE PARENT COMPANY HE SAID THE STOCK OFFERING PROVIDES UNITED TECHNOLOGIES WITH AN OPPORTUNITY GIVEN CURRENT MARKET CONDITIONS TO UNLOCK A PORTION OF ITS INVESTMENT IN U. T. AUTOMOTIVE THE OFFERING WILL CONSIST OF SEVENTEEN MILLION EIGHT HUNDRED THOUSAND SHARES OF U. T. A. CLASS A COMMON STOCK AND AN OVER ALLOTMENT OPTION FOR THE UNDERWRITERS TO BUY AS MUCH AS AN ADDED ONE MILLION SEVEN HUNDRED EIGHTY THOUSAND SHARES THE COMPANY SAID IT HAS APPLIED FOR LISTING THE STOCK ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID THE OFFERING PRICE IS EXPECTED TO BE BETWEEN TWENTY TWO DOLLARS AND TWENTY FOUR DOLLARS A SHARE AT THOSE PRICES PROCEEDS TO THE COMPANY WOULD BE BETWEEN FOUR HUNDRED THIRTY ONE MILLION DOLLARS AND FOUR HUNDRED SEVENTY MILLION LESS EXPENSES RELATED TO THE OFFERING IN ADDITION U. T. A. WILL PAY THREE HUNDRED SIXTY MILLION DOLLARS IN DIVIDENDS TO THE PARENT COMPANY PRIOR TO THE STOCK OFFERING THE COMPANY SAID THE CLASS B. STOCK PROVIDES IT THE FLEXIBILITY TO RETAIN A CONTROLLING INTEREST IN U. T. A. OR TO DISTRIBUTE ALL OR A PORTION OF ITS REMAINING SHARES IN THE UNIT THE COMPANY SAID THAT IF IT DECIDES TO DIVEST ITSELF OF ITS EQUITY IN THE UNIT THAT IT WOULD DO SO THROUGH PUBLIC OFFERINGS OR PRIVATE PLACEMENTS OR POSSIBLY THROUGH A TAX FREE DIVIDEND TO UNITED TECHNOLOGIES' SHAREHOLDERS THE COMPANY SAID THE CURRENT MANAGEMENT WILL CONTINUE TO OPERATE AT THE AUTOMOTIVE UNIT AND THAT THE OFFERING WON'T AFFECT EMPLOYEE BENEFITS AND CONTRACTS THE COMPANY SAID IT HAS FILED A REGISTRATION STATEMENT GOVERNING THE OFFERING WITH THE SECURITIES AND EXCHANGE COMMISSION AND THAT IT WOULD OFFER THE STOCK AFTER IT BECOMES EFFECTIVE LEHMAN BROTHERS SALOMON BROTHERS AND LAZARD FRERES WILL ACT AS MANAGING UNDERWRITERS FOR THE OFFERING UNITED TECHNOLOGIES CLOSED AT SIXTY FIVE DOLLARS AND FIFTY CENTS UP EIGHTY SEVEN POINT FIVE CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE WASHINGTON FEDERAL SAVINGS SEATTLE SAID IT DECLARED A TEN PERCENT COMMON STOCK DIVIDEND PAYABLE FEBRUARY EIGHTEENTH TO STOCK OF RECORD FEBRUARY FIRST THE PAYOUT OF THE HIGHLY PROFITABLE THRIFT WILL INCREASE SHARES OUTSTANDING TO THIRTY NINE POINT EIGHT MILLION FROM THIRTY SIX POINT TWO MILLION THE STAFF OF THE FEDERAL TRADE COMMISSION HAS RECOMMENDED THAT THE AGENCY APPROVE THE MERGER OF COLUMBIA HEALTHCARE CORPORATION AND H. C. A. HOSPITAL CORPORATION OF AMERICA ACCORDING TO PEOPLE FAMILIAR WITH THE F. T. C.'S REVIEW ALTHOUGH ESSENTIALLY ENDORSING THE MERGER THE STAFF'S RECOMMENDATION RAISES MINOR CONCERNS ABOUT THE MERGED COMPANIES' COMBINED MARKET POWER IN TWO SOUTHEASTERN MARKETS AN INDIVIDUAL FAMILIAR WITH THE CASE SAID BEFORE GIVING FINAL AUTHORIZATION FOR THE DEAL THE F. T. C. IS LIKELY TO REQUIRE THE COMPANIES TO SELL AT LEAST ONE HOSPITAL IN EACH OF THESE MARKETS THE F. T. C.'S FIVE COMMISSIONERS WHO GENERALLY FOLLOW STAFF RECOMMENDATIONS TO APPROVE MERGERS ARE EXPECTED TO VOTE WITHIN THE NEXT TWO WEEKS THE STAFF'S OPINION IN THE CASE SUGGESTS THAT ANTITRUST OFFICIALS WILL PROBABLY SMILE ON EVEN THE BIGGEST MERGERS IN THE CURRENT WAVE OF HOSPITAL CONSOLIDATION COLUMBIA'S FIVE POINT SEVEN BILLION DOLLAR ACQUISITION OF NASHVILLE TENN.BASED H. C. A. WOULD COMBINE THE NATION'S TWO LARGEST FOR PROFIT HOSPITAL CHAINS INTO A GIANT THAT HAS SIGNALED ITS INTENTION TO CONTINUE BUYING HOSPITALS COLUMBIA IS BASED IN LOUISVILLE KENTUCKY THE STAFF RECOMMENDATION ALSO SHOWS THAT ANTITRUST HURDLES MAY NOT BE AS BIG A PROBLEM AS SOME IN THE INDUSTRY HAVE SUGGESTED THE AMERICAN HOSPITAL ASSOCIATION AND OTHER INDUSTRY GROUPS HAVE BEEN PUSHING HARD FOR RELAXATION OF THE ANTITRUST LAWS ON HOSPITAL MERGERS AND JOINT VENTURES SOME LAWYERS SAID THE RECOMMENDATION WOULD BE CONTROVERSIAL BECAUSE IT APPEARS TO CONFLICT WITH PREVIOUS DECISIONS TO BLOCK MERGERS OF HOSPITAL COMPANIES THAT WERE MUCH SMALLER THAN THESE QUOTE LETTING THIS TRANSACTION CLEAR IS A RELAXATION OF ENFORCEMENT AS WE'VE UNDERSTOOD IT QUOTE SAID TOM CAMPBELL AN ANTITRUST LAWYER AT GARDNER CARTON AND DOUGLAS IN CHICAGO OTHER LAWYERS DISAGREED HOWEVER ABOUT HOW MUCH THE DECISION DIVERGED FROM PRECEDENT SPOKESPERSONS FOR COLUMBIA AND H. C. A. SAID THE COMPANY IS IN DISCUSSIONS WITH THE F. T. C. BUT DECLINED TO ELABORATE OTHER THAN TO SAY THE MERGER SHOULD BE COMPLETED BY FEBRUARY TENTH OR SHORTLY THEREAFTER AS SCHEDULED AN F. T. C. SPOKEWOMAN SAID IT IS AGENCY POLICY NOT TO COMMENT ON MERGERS UNDER REVIEW SCOTT PAPER COMPANY SAID IT MADE A TENDER OFFER FOR ITS SEVENTY TWO POINT ONE MILLION DOLLARS OF ELEVEN AND ONE HALF PERCENT DEBENTURES DUE TWO THOUSAND FIFTEEN THE MAKER OF PAPER PRODUCTS SAID THE PURCHASE WOULD REDUCE INTEREST COSTS A SPOKESMAN SAID THE OFFER PRICED IN RELATION TO CERTAIN TREASURY NOTES WOULD AMOUNT TO ABOUT ONE HUNDRED EIGHTEEN DOLLARS FOR EACH ONE HUNDRED DOLLARS OF DEBENTURES WHEREAS THE COMPANY WOULD HAVE TO PAY ONLY ABOUT ONE HUNDRED FIVE DOLLARS AT DECEMBER FIRST NINETEEN NINETY FIVE THE FIRST DATE THE DEBENTURES COULD BE CALLED BY SCOTT SEAGRAM COMPANY RAISED ITS STAKE IN TIME WARNER INCORPORATED NEW YORK TO ELEVEN POINT SEVEN PERCENT FROM TEN POINT FOUR PERCENT MAKING SEAGRAM THE LARGEST SHAREHOLDER IN TIME WARNER SEAGRAM'S HOLDINGS SURPASSED THE CAPITAL GROUP INCORPORATED WHICH HAS ELEVEN PERCENT OF TIME WARNER STOCK ACCORDING TO TIME WARNER'S LATEST PROXY SEAGRAM A SPIRITS MAKER CURRENTLY HOLDS FORTY FOUR MILLION TWO HUNDRED THIRTY THOUSAND SHARES OF TIME WARNER ACCORDING TO A FILING BY SEAGRAM YESTERDAY WITH THE SECURITIES AND EXCHANGE COMMISSION SEAGRAM TOOK ADVANTAGE OF A RECENT DECLINE IN TIME WARNER'S STOCK PRICE TO STEP UP ITS BUYING SEAGRAM ACQUIRED ABOUT FIVE POINT ONE FOUR MILLION SHARES SINCE DECEMBER THIRTY FIRST NINETEEN NINETY THREE FOR ABOUT TWO HUNDRED SEVEN POINT TWO MILLION DOLLARS SEAGRAM PAID BETWEEN THIRTY NINE DOLLARS A SHARE AND FORTY FOUR DOLLARS AND THIRTY SEVEN CENTS A SHARE FOR ITS LATEST PURCHASES TIME WARNER CLOSED AT THIRTY NINE POINT ONE TWO FIVE DOLLARS A SHARE YESTERDAY DOWN TWELVE POINT FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SEAGRAM SAID IT PLANS TO ACQUIRE AS MUCH AS FIFTEEN PERCENT OF TIME WARNER SEAGRAM AND TIME WARNER DECLINED TO COMMENT THE DOW JONES INDUSTRIAL AVERAGE PLOWED TO YET ANOTHER HIGH DESPITE A FLURRY OF DOWNBEAT PROFIT REPORTS THAT KEPT STOCKS LOWER MOST OF THE DAY BOND PRICES FELL AND THE DOLLAR WAS MIXED HITTING ITS SEVENTH RECORD OF THE YEAR THE INDUSTRIAL AVERAGE CLIMBED FOURTEEN POINT OH EIGHT POINTS TO THREE THOUSAND EIGHT HUNDRED EIGHTY FOUR POINT THREE SEVEN STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX EDGED UP ZERO POINT ZERO FIVE TO FOUR HUNDRED SEVENTY FOUR POINT THREE OH BUT THE NASDAQ COMPOSITE INDEX HURT BY HEAVY SELLING IN THE TECHNOLOGY ARENA SLUMPED THREE POINT SEVEN FOUR TO SEVEN HUNDRED EIGHTY NINE POINT TWO EIGHT QUOTE YOU HAD A COUPLE OF BAD EARNINGS REPORTS IN THE DRUG AND TECHNOLOGY SECTORS AND THAT SPARKED SOME CONCERNS ABOUT PROFITS FOR THE QUARTER QUOTE SAID WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS STOCKS STARTED THE DAY LOWER AS INVESTORS UNIMPRESSED BY FINANCIAL RESULTS FROM INTEL AND DIGITAL EQUIPMENT BEGAN HAMMERING AWAY AT THE STOCKS DIGITAL FELL THREE TO THIRTY TWO AND INTEL SANK FOUR TO SIXTY TWO DESPITE REPORTING A THIRTY EIGHT PERCENT JUMP IN FOURTH QUARTER PROFITS LATE TUESDAY ADDING TO STOCK MARKET WOES WAS NEWS THAT PFIZER CONSIDERED BY MANY TO BE THE STRONGEST DRUG COMPANY HAD A DISCOURAGING FOURTH QUARTER PFIZER TUMBLED FIVE TO SIXTY TWO AND SEVEN EIGHTHS OTHER DRUG STOCKS WERE PUMMELED SCHERING PLOUGH LOST ONE AND SEVEN EIGHTHS TO SIXTY FOUR AND THREE EIGHTHS ELI LILLY ONE AND FIVE EIGHTHS TO FIFTY NINE AND SEVEN EIGHTHS AND MERCK THREE QUARTERS TO THIRTY FIVE AND SEVEN EIGHTHS BUT DESPITE THE BARRAGE OF BAD NEWS STOCK INVESTORS HARDLY FLINCHED I THINK PEOPLE WERE ENCOURAGED BY THE FACT THAT THE MARKET DIDN'T CRACK SAYS LASZLO BIRINYI WHO HEADS A FINANCIAL SERVICES COMPANY THAT BEARS HIS NAME EVEN THOUGH YOU HAD A BOND MARKET WHICH WAS A LIABILITY AND A NUMBER OF KEY NAMES WHICH TRADED POORLY THE MARKET DIDN'T BREAK MEANWHILE IN EUROPE SIGNS OF RENEWED ECONOMIC GROWTH AND EXPECTATIONS OF LOWER INTEREST RATES PROPELLED STOCK MARKETS IN LONDON ZURICH AMSTERDAM MADRID STOCKHOLM OSLO AND HELSINKI TO RECORD HIGHS BRITISH FRENCH AND GERMAN STOCK MARKETS EACH ROSE ONE PERCENT TO ONE POINT TWO PERCENT WILD GYRATIONS CONTINUED TO PLAY HAVOC WITH STOCK MARKETS IN ASIA MANILA SOARED FIVE POINT TWO PERCENT HONG KONG CLIMBED THREE POINT ONE PERCENT AND TOKYO ROSE TWO POINT EIGHT PERCENT BUT STOCKS IN KUALA LUMPUR FELL TWO POINT SIX PERCENT AND THOSE IN BANGKOK WERE OFF ONE POINT TWO PERCENT WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED ZERO POINT SEVEN SEVEN TO ONE HUNDRED FOURTEEN POINT TWO ONE STOCK PRICES WERE MIXED VOLUME TOTALED THREE HUNDRED TEN POINT EIGHT MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND ONE HUNDRED FORTY FOUR ISSUES ROSE AND NINE HUNDRED EIGHTY THREE FELL BOND PRICES FELL THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE LOST THREE EIGHTHS POINT OR THREE DOLLARS AND SEVENTY FIVE CENTS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT TWO NINE PERCENT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS AT ONE POINT SEVEN FOUR SIX OH MARKS AND ONE HUNDRED ELEVEN POINT THREE FIVE YEN COMPARED WITH ONE POINT SEVEN FOUR SIX FIVE MARKS AND ONE HUNDRED TEN POINT SEVEN FIVE YEN LATE TUESDAY PRICE SLASH COSTCO INCORPORATED IS CLOSING FOUR OF ITS WAREHOUSE STORES IN CALIFORNIA AND CONNECTICUT TO ELIMINATE OVERLAP RESULTING FROM THE OCTOBER MERGER OF PRICE COMPANY AND COSTCO WHOLESALE CORPORATION THE CLOSINGS WERE ANTICIPATED AND THEIR COSTS INCLUDED IN A ONE HUNDRED TWENTY MILLION DOLLAR MERGER AND RESTRUCTURING RESERVE SET ASIDE DURING THE FISCAL FIRST QUARTER ENDED NOVEMBER TWENTY FIRST V. F. CORPORATION IS COMPLETING ITS ACQUISITION OF NUTMEG INDUSTRIES INCORPORATED TAMPA FLORIDA FOR THREE HUNDRED NINE MILLION DOLLARS LAST MONTH V. F. OFFERED SEVENTEEN DOLLARS AND FIFTY CENTS A SHARE TO THE STOCKHOLDERS OF NUTMEG NEARLY ONE POINT EIGHT MILLION SHARES OR ROUGHLY NINETY FIVE PERCENT OF NUTMEG'S COMMON STOCK WERE TENDERED AS OF TUESDAY ALLOWING V. F. TO COMPLETE ACQUISITION BY THE END OF THE MONTH NOBLE DRILLING CORPORATION HOUSTON WILL ACQUIRE TRITON ENGINEERING SERVICES COMPANY HOUSTON TERMS WEREN'T DISCLOSED CROWN RESOURCES CORPORATION'S EIGHTY SIX PERCENT OWNED UNIT SOLITARIO RESOURCES CORPORATION ACQUIRED AN OPTION TO PURCHASE SEVEN EXPLORATION PROPERTIES IN ARGENTINA CONTAINING COPPER GOLD AND SILVER THE SELLER AND TERMS WEREN'T DISCLOSED NEARLY HALF OF ALL INSTRUCTORS WHO DO REMEDIAL WORK WITH DISADVANTAGED CHILDREN ARE UNTRAINED AIDES A STUDY BY THE INTERNATIONAL READING ASSOCIATION FOUND MORE THAN EIGHTY PERCENT OF THESE AIDES HAVE ONLY HIGH SCHOOL DIPLOMAS YET THEY TEACH AN AVERAGE OF THIRTY ONE STUDENTS EACH DAY ACCORDING TO THE REPORT ONE FIFTH OF THE AIDES DO THEIR JOBS WITHOUT REGULAR SUPERVISION FROM LICENSED TEACHERS IT SAID QUOTE WHERE THE POVERTY OF SCHOOLS IS GREATEST THE NUMBER OF AIDES IS HIGHEST QUOTE SAID RICHARD LONG THE ASSOCIATION'S LOBBYIST WHO ARGUED THAT THE MOST DISADVANTAGED CHILDREN NEED THE BEST INSTRUCTION AVAILABLE THE ASSOCIATION A NONPROFIT GROUP OF READING TEACHERS WANTS THE CLINTON ADMINISTRATION TO HELP TRAIN TEACHERS' AIDES BY ESTABLISHING A CERTIFICATION PROGRAM SIMILAR TO ONE USED BY HEAD START PRESCHOOL PROGRAMS TRAINING WITH CLASSES ON LEARNING CHILD DEVELOPMENT AND READING INSTRUCTION WOULD COST ABOUT NINE HUNDRED FIFTY DOLLARS A PERSON OR FIFTY SEVEN POINT NINE MILLION DOLLARS FOR ALL SIXTY FIVE THOUSAND AIDES MR. LONG ESTIMATED THE EDUCATION DEPARTMENT HAS PROPOSED THAT CONGRESS SET ASIDE MONEY FOR AIDES' AND TEACHERS' PROFESSIONAL DEVELOPMENT WHEN IT REAUTHORIZES THE CHAPTER ONE PROGRAM FOR DISADVANTAGED CHILDREN CONGRESS WILL CONSIDER THE CHAPTER ONE LEGISLATION LATER THIS YEAR THE CHAPTER ONE PROGRAM HAS BEEN RECEIVING SEVEN BILLION DOLLARS ANNUALLY AND IS EXPECTED TO GET AN INCREASE OF ABOUT SEVEN HUNDRED MILLION DOLLARS A YEAR DURING THE LAST DECADE FINANCIALLY STRAPPED SCHOOLS HAVE BEEN HIRING AIDES AT MORE THAN TWICE THE PACE THEY HIRE TEACHERS BY USING AIDES THEY CAN REDUCE PUPIL TEACHER RATIOS AT HALF THE COST OF ADDING ADDITIONAL TEACHERS BUT THE ASSOCIATION REPORT SAID THERE IS NO EVIDENCE THAT AIDES HAVE A POSITIVE EFFECT ON CHILDREN'S LEARNING SOME STUDIES SHOW THAT AIDES CAN BE COUNTERPRODUCTIVE FOSTERING CHILDREN'S DEPENDENCY BY THE WAY THEY TEACH AIDES ARE MORE LIKELY THAN TEACHERS TO SIMPLY ANSWER CHILDREN'S QUESTIONS RATHER THAN SHOW STUDENTS HOW TO FIGURE OUT ANSWERS FOR THEMSELVES MR. LONG SAID AIDES ALSO ARE MORE LIKELY TO TEACH READING THROUGH WORKBOOK EXERCISES THAN THROUGH DISCUSSING TEXTS EVEN THOUGH SUCH EXERCISES HAVE BEEN SHOWN TO HAVE LESS EDUCATIONAL VALUE MR. LONG ADDED THE WORLD'S LARGEST RECORD COMPANIES LED BY SONY CORPORATION'S SONY MUSIC AND TIME WARNER INCORPORATED'S WARNER MUSIC GROUP ARE DISCUSSING THE FORMATION OF A WORLD WIDE TELEVISED MUSIC VIDEO SERVICE THAT COULD BE THE FIRST SIGNIFICANT COMPETITOR TO VIACOM INCORPORATED'S M. T. V. NETWORKS OTHER RECORD COMPANIES INVOLVED IN THE DISCUSSIONS ARE E. M. I. MUSIC A UNIT OF THORN E. M. I. P. L. C. AND POLYGRAM EIGHTY PERCENT OWNED BY PHILIPS ELECTRONICS N. V. NEITHER COULD BE REACHED FOR COMMENT SONY DECLINED TO COMMENT AND TIME WARNER SAID QUOTE WE DON'T COMMENT ON TRANSACTIONS THAT HAVEN'T BEEN CONSUMMATED QUOTE ACCORDING TO PEOPLE INVOLVED IN THE TALKS THE PARTNERS INITIALLY PLAN TO LAUNCH A NUMBER OF LOCAL MUSIC VIDEO SERVICES IN DIFFERENT LANGUAGES OVERSEAS IN SOME OF M. T. V.'S FASTEST GROWING EUROPEAN AND ASIAN MARKETS EVENTUALLY HOWEVER AS CHANNEL CAPACITY INCREASES IN U. S. CABLE SYSTEMS A NEW VIDEO CHANNEL WILL BE LAUNCHED IN THE U. S. ALL THE CHANNELS WOULD PLAY MUSIC VIDEOS AND POSSIBLY SELL TAPES COMPACT DISKS AND OTHER MERCHANDISE THE TIME WARNER SONY PLAN IS BOLD AND RISKY IT WOULD TAKE HUNDREDS OF MILLIONS OF DOLLARS TO MATCH M. T. V.'S FORMIDABLE REACH AND REPLICATE ITS GLOBALLY RECOGNIZED TRADEMARK ITS PRIMARY TWENTY FOUR HOUR MUSIC CHANNEL M. T. V. REACHES FIFTY SEVEN MILLION HOMES IN THE U. S. AND A SISTER SERVICE V. H. ONE IS RECEIVED IN FORTY SEVEN MILLION HOMES IN EUROPE M. T. V. ALREADY IS IN FIFTY EIGHT MILLION HOMES THE COMPANY ESTIMATES TOTAL WORLD WIDE VIEWERSHIP AT TWO HUNDRED FIFTY ONE MILLION HOMES IN THE U. S. M. T. V. SOON WILL BEGIN TESTING THE SALE OF MUSIC AND RELATED MERCHANDISE ON T. V. THERE IS WIDESPREAD SPECULATION IN THE MUSIC INDUSTRY THAT THE PARTNERS IN THE TIME WARNER SONY VENTURE MAY ATTEMPT TO PROVIDE THEIR VIDEOS EXCLUSIVELY TO THEIR START UP SERVICE OVERSEAS REFUSING TO SUPPLY THEM TO M. T. V. SUCH A MOVE COULD RAISE MAJOR ANTITRUST PROBLEMS IN THE U. S. AND PROBABLY IN EUROPE AS WELL BUT PEOPLE INVOLVED IN THE SONY TIME WARNER VENTURE SAID THE TWO COMPANIES HAVEN'T ANY PLANS TO WITHHOLD THEIR MUSIC VIDEOS FROM M. T. V. VIACOM OFFICIALS SAID THAT THEY ARE AWARE OF THE TIME WARNER SONY PLAN AND AREN'T WORRIED ABOUT IT UNLESS THE RECORD COMPANIES DO INTEND TO WITHHOLD THEIR PRODUCT FROM M. T. V. TOM FRESTON M. T. V. NETWORKS PRESIDENT SAID IF IT'S FAIR COMPETITION THAT'S FAIR AND IT'S GOOD RECORD INDUSTRY EXECUTIVES SAY THEY HAVE BECOME INCREASINGLY FRUSTRATED THAT M. T. V. IS THE ONLY OUTLET FOR THEIR MUSIC VIDEOS VIDEOS ARE THE PRIMARY MARKETING TOOL USED TO SELL RECORDS AND M. T. V. HAS LIMITED PLAYLISTS OR VIDEOS THAT IT REGULARLY AIRS IF M. T. V. DECIDES NOT TO AIR A VIDEO THE RECORD COMPANIES HAVE LITTLE CHANCE OF SPURRING SALES CURRENTLY M. T. V. IS THE ONLY SERVICE THAT PAYS RECORD COMPANIES TO USE MUSIC VIDEOS BUT RECORD COMPANIES OFTEN COMPLAIN THAT IT PAYS TOO LITTLE TIME WARNER AND SONY ARE SAID TO BE USING AN EXISTING PARTNERSHIP IN GERMANY CALLED VIVA AS THE PROTOTYPE FOR MUSICCABLE CHANNELS AROUND THE WORLD AND EVENTUALLY IN THE U. S. THAT SERVICE ON THE AIR SINCE CHRISTMAS IS AVAILABLE IN NINETY PERCENT OF GERMANY'S CABLE HOUSEHOLDS UNLIKE M. T. V. WHERE ALL THE VIDEO DEEJAYS SPEAK ENGLISH THE TIME WARNER SONY SERVICE ANTICIPATES OFFERING DIFFERENT MUSIC CHANNELS IN THE LOCAL LANGUAGE VIVA USES ONLY GERMAN SPEAKING ANNOUNCERS EVEN WHEN PLAYING SONGS IN OTHER LANGUAGES AND SIXTY PERCENT OF THE MUSIC IS GERMAN IN CHINA THE SERVICE PROBABLY WOULD BE IN MANDARIN AND IN LATIN AMERICA IN SPANISH THUS PEOPLE INVOLVED IN THE TALKS SAY THE CHANNELS WOULD BE POSITIONED AS ALTERNATIVES TO M. T. V. SONY AND TIME WARNER HAVE BEEN PARTNERS FOR THREE YEARS IN THE COLUMBIA HOUSE RECORD CLUB IN THAT PARTNERSHIP MICHAEL P. SCHULHOF SONY CORPORATION OF AMERICA'S CHAIRMAN AND ROBERT MORGADO WARNER MUSIC GROUP CHAIRMAN ALREADY HAVEHATCHED A NUMBER OF JOINT VENTURES INCLUDING A DIGITAL CABLE RADIO SERVICE AND MUSIC CATALOGS THE TIME WARNER SONY VENTURE ISN'T THE FIRST OF ITS KIND TO BE ANNOUNCED ALTHOUGH ITS SCOPE COULD DWARF OTHER WOULD BE COMPETITORS OF M. T. V. LAST SUMMER FOR EXAMPLE CABLE GIANT TELE COMMUNICATIONS INCORPORATED ANNOUNCED IT WAS TEAMING WITH MIDSIZE RECORD COMPANY BERTELSMANN A. G. TO LAUNCH A HYBRID MUSIC VIDEO HOME SHOPPING CABLE CHANNEL IN THE U. S. THE PARTNERS SAID THE CHANNEL WOULD BE LAUNCHED FIRST IN T. C. I. CABLE HOMES STARTING IN MID NINETEEN NINETY FOUR ALTHOUGH IT DIDN'T SAY HOW MANY OF T. C. I.'S TEN MILLION CABLE HOMES WOULD RECEIVE THE CHANNEL INITIALLY A T. C. I. SPOKESMAN SAID HE WASN'T AWARE OF THE TIME WARNER SONY VENTURE BUT THE COMPANY HAD EXPECTED OTHER PLAYERS TO ENTER THE MUSIC MARKET SOME IN THE RECORD INDUSTRY HAVE SPECULATED THAT THE T. C. I. BERTELSMANN DEAL HAS TAKEN A BACK SEAT SINCE T. C. I.'S ANNOUNCED MERGER WITH BELL ATLANTIC CORPORATION BUT ROBERT THOMSON A T. C. I. SENIOR VICE PRESIDENT SAID WE'RE STILL WORKING ON A DEFINITIVE AGREEMENT WITH BERTELSMANN WE'RE STILL ON TRACK MARK ROBICHAUX CONTRIBUTED TO THIS ARTICLE FOLLOWING MONDAY'S EARTHQUAKE JOURNALISTS FROM ALL OVER THE COUNTRY HAVE BEEN MAKING WHAT IS BECOMING A REGULAR QUOTE DISASTER VISIT QUOTE TO CALIFORNIA FIRES MUD SLIDES UNEMPLOYMENT LINES RACE RIOTS EARTHQUAKES WHAT HAS HAPPENED TO THE STATE THAT ONCE ADVERTISED ITSELF TO THE WORLD AS GOLDEN THERE WAS BRYANT GUMBEL ON TODAY WONDERING TO CALIFORNIA GOVERNOR PETE WILSON IF PERHAPS LOS ANGELES IS A CITY CURSED AS IN THE CHARLTON HESTON BIBLE MOVIES COME TO CALIFORNIA AND DISCOVER GOLD COME TO CALIFORNIA AND GET ON WHEEL OF FORTUNE COME TO CALIFORNIA AND BECOME A MOVIE STAR COME TO CALIFORNIA AND BLEACH YOUR HAIR GET A DIVORCE AND CHANGE YOUR NAME FROM ITS AMERICAN BEGINNINGS CALIFORNIA WAS ADVERTISED BY REAL ESTATE AGENTS AND BUSINESSMEN AS A COMIC DESTINATION IN A NATION THAT REGARDED LAND AS THE METAPHOR FOR POSSIBILITY CALIFORNIA REPRESENTED THE EXTREME POSSIBILITY OF AMERICA THE LAST PLACE TO START ANEW GOLDEN CALIFORNIA WAS THUS NOT CREATED FROM THE DARK DESPAIR OF FOREIGN IMMIGRANTS BUT FROM SOME NATIVE AMERICAN AMBITION TO RE CREATE THE MOST FAMOUS CALIFORNIANS HAVE BEEN INTERNAL IMMIGRANTS FROM PLACES LIKE BROOKLYN AND IOWA AND OKLAHOMA LUCILLE BALL WALT DISNEY THE JOAD FAMILY DARYL F. ZANUCK HOW COULD TRAGEDY ATTACH TO SUCH A PLACE THERE WERE EARTHQUAKES AND OTHER NATURAL CALAMITIES IN CALIFORNIA BUT CALIFORNIANS CHOSE TO SEE IN THE RICH SOIL AND CLOUDLESS SKY A BENEVOLENT NATURE IF TODAY SOME CALIFORNIANS SENSE A BIBLICAL CURSE IN PAST DECADES CALIFORNIA HAD WRITTEN TRAGEDY OUT OF THE STATE'S SCRIPT THE AMERICAN PROTESTANT VERSION OF THE PLACE HAS BEEN MOST GLAMOROUS FOR ITS COMIC FAITH IN HISTORICAL DISCONTINUITY AND INDIVIDUALISM REGARDLESS OF WHO YOUR PARENTS WERE OR YOUR PAST YOU CAN BE ANYTHING YOU WANT IN CALIFORNIA YET THIS COMIC VISION IS GRADUALLY DARKENING AS EARLY AS THE ONE THOUSAND EIGHT HUNDRED SIXTIES WHEN CALIFORNIA WAS STILL MOSTLY SILENT SOME ECCENTRIC CALIFORNIANS WERE SOUNDING A TRAGIC INTUITION JOHN MUIR THE STATE'S FIRST ENVIRONMENTALIST STOOD ON THE MARIN HEADLANDS AMID DRIPPING PINES AND ANNOUNCED THAT THE AMERICAN DREAM HAD REACHED A POINT OF FINITUDE THE COASTLINE HIS MESSAGE TRAVELED WEST TO EAST BACK TO THE CROWDED CITIES OF THE EAST COAST WE HAVE RUN OUT OF LAND IN CALIFORNIA THE AMERICAN DREAM HAS LIMITS BUT WHO WAS WILLING TO LISTEN LATER ODD VOICES IN CALIFORNIA DETECTED A DARKNESS LOS ANGELES CLOTHED IN BRIGHT LIGHT AND DEEP SHADOWS NOIR L. A. THE MOST DISTINCTIVE LITERARY GENRE OF CALIFORNIA IN THIS CENTURY BECAME THE MYSTERY NOVEL A CRIME HAS BEEN COMMITTED IN PARADISE WHO IS THE CRIMINAL BUT THE GREATER DRAMA OF CALIFORNIA WAS STILL COMIC CALIFORNIANS HAD THE TWO CAR GARAGE AND FOUR LANE FREEWAY REQUIRING NO TOLLS THEN L. A. GOT TOO CROWDED AND PEOPLE STARTED TALKING ABOUT NORTH COUNTY SAN DIEGO OR THEY HEADED INTO THE DESERT FOR SEVERAL GENERATIONS THERE WAS LAND ENOUGH IN CALIFORNIA LAND FOR SEPARATE HOUSES SEPARATE PATCHES OF LAWN WINKING SWIMMING POOLS BIGGER AND NEWER MALLS ONLY RECENTLY HAVE CALIFORNIANS BEGUN TO SPEAK OF THE CROWD EAST COAST JOURNALISTS WHO HAVE BEEN MAKING THEIR DISASTER VISITS HAVE TYPICALLY INTERVIEWED THE BLOND DIVORCEE WHO HAS HAD IT WITH L. A. THERE'S TOO MUCH CRIME TOO MUCH TRAFFIC TOO MUCH POLLUTION SHE'S LEAVING SHE SAYS THIS BETWEEN DRAGS ON HER CIGARETTE LEAVING FOR COLORADO OR SOME PLACE LIKE THAT THE IRONY OF COURSE IS THAT WHILE NATIVE CALIFORNIANS ARE TALKING ABOUT LEAVING THE STATE REMAINS THE DESTINATION OF CHOICE FOR FOREIGN IMMIGRANTS THE IRONY IS THAT THE FOREIGN BORN ARE BECOMING THE NEW OPTIMISTS NOW THEY HAVE BEEN LURED TO CALIFORNIA AS HAVE AMERICANS BEFORE THEM BY THE LURE OF THE PROTESTANT PROMISE OF NEW BEGINNINGS AS MUCH AS ANYONE THEY ARE BEWILDERED BY THE SHABBINESS OF THE STATE THEY CONFRONT THE KOREAN GROCERY STORE OWNER REMEMBERS HOW IN THE MOVIES EVERYONE WAS BLOND AND DROVE A CONVERTIBLE THE ONLY PEOPLE I'VE SEEN SINCE I CAME TO LOS ANGELES ARE BROWN AND BLACK SHE SAYS BEMUSED BUT STILL THE IMMIGRANTS COME EVEN AS A SADNESS FILLS NATIVE BORN CALIFORNIANS THE NEW SADNESS DO YOU KNOW WHERE I SPENT THE DIA DE LOS MUERTOS THIS PAST NOVEMBER THE DIA DE LOS MUERTOS IS THE NIGHT WHEN TRADITIONALLY INDIAN CATHOLICS IN MEXICO GO TO THE CEMETERY AND DRINK AND EAT AMID FAMILY TOMBSTONES THIS NOVEMBER I WAS AT THE PALM SPRINGS MUSEUM IN THE ANNENBERG AUDITORIUM ON THE DIA DE LOS MUERTOS PALM SPRINGS TRADITIONALLY HAS BEEN A PLACE IN CALIFORNIA WHERE PEOPLE DO NOT DIE THEY QUOTE PASS AWAY QUOTE AND PEOPLE DON'T GET OLD IN PALM SPRINGS THEY GET A FACE LIFT BUT THERE WE WERE GOLDEN CALIFORNIANS ON NOVEMBER SECOND BEHAVING VERY MUCH LIKE MEXICAN PEASANTS BROODING OVER DEATH THE IMMIGRANTS MEANWHILE ARE BECOMING THE NEW PURITANS OF CALIFORNIA THEY WORK ALL THE TIME ASIANS ARE RESENTED FOR WORKING TOO HARD AT U. C. L. A. AND AT A TIME WHEN RICHARD GERE HAS BECOME CALIFORNIA'S MOST FAMOUS BUDDHIST SPANISH IS BECOMING THE NEW LANGUAGE OF PROTESTANTISM IN CALIFORNIA THE OTHER DAY IN TIJUANA I MET THREE MEXICAN EVANGELICALS WHO TOLD ME THEY WERE HEADED NORTH TO CONVERT CALIFORNIA BACK TO ITS PROTESTANT ROOTS FORTY YEARS AGO OCTAVIO PAZ THE GREAT POET ESSAYIST OF MEXICO REMARKED IN THE LABYRINTH OF SOLITUDE HOW MUCH LOS ANGELES LOOKED LIKE A MEXICAN CITY MR. PAZ SAW THE MEXICAN FACE OF L. A. IN THE CITY'S DELIGHT IN DECORATIONS CARELESSNESS AND POMP NEGLIGENCE PASSION AND RESERVE THE MEXICAN CITY HE THOUGHT MUST BE AT ODDS WITH THE NORTH AMERICAN WORLD OF PRECISION AND EFFICIENCY FORTY YEARS LATER IT SEEMS TO ME RATHER THE OTHER WAY AROUND EVERYWHERE TODAY THERE ARE MEXICANS CROWDED AT BUS STOPS WORKING IN RESTAURANTS IN FACTORIES GARDENING THE MEXICANS ADD A SOBRIETY TO THIS CITY FAMOUS FOR LEISURE THE MEXICANS ARE BUSY LEGALLY OR ILLEGALLY WORKING THERE ARE TIMES INDEED THEY SEEM OUT OF PLACE IN LOS ANGELES FOR WORKING SO HARD IN THE GOLDEN STATE IMMIGRANTS WILL BECOME THE NEW MOVIE STARS OF LOS ANGELES AND THE NEW GANGSTERS AND THE NEW COPS THE GOLDEN STATE WILL GIVE WAY TO SOMETHING MORE DUSTY A PLACE MORE FOREIGN THAN WE HAD EVER IMAGINED CALIFORNIA TO BE THIS WEEK LOS ANGELES SEEMS SO DUSTY AND WORN OLD AS ONLY A CITY OF BUSTED NEW BUILDINGS CAN LOOK THE FREEWAYS ARE BROKEN THE CITY'S FAMOUS FREEDOM IS JEOPARDIZED TWO YEARS AGO WHEN BLACK L. A. WAS IN A RAGE AFTER THE VERDICTS IN THE RODNEY KING BEATING CASE LATIN AMERICAN IMMIGRANTS JOINED IN THE CHAOS AS THE CROWDS CLIMBED IN AND OUT OF THE BROKEN MINIMALLS I THOUGHT THEN TO MYSELF THAT L. A. LOOKED LIKE A THIRD WORLD CITY THEN AS NOW AFTER THE MALIBU FIRES AND THE LINES OF UNEMPLOYED ENGINEERS AFTER THE FREEWAYS HAVE BEEN DAMAGED AND THE WATER TURNED IMPURE I THINK A MEXICAN SORT OF REDEMPTION AWAITS THE SHABBY CITY TWO YEARS AGO GOLDEN L. A. THE CITY FAMOUS AS A NONCITY OF SEPARATE SUBURBS AND DISCRETE FREEWAY EXITS WAS FORCED TO REALIZE IN A NIGHT OF TERROR THAT THE CITY WAS WHOLE THE DANGEROUS PART OF TOWN WAS NOT AFTER ALL SO VERY DISTANT FROM THE SAFE PART OF TOWN WHAT HAPPENED TO BLACK KIDS IN SOUTH CENTRAL IMPLICATED WHITE KIDS IN SANTA MONICA A MEXICAN KNOWLEDGE MEXICANS DRINK DARK BEER MEXICAN MEN SING WHEN THEY GET DRUNK MEXICAN MEN AND WOMEN GET UP IN THE EARLY MORNING AND WORK BECAUSE THEY KNOW THAT LIFE IS WORK AND HARD L. A. IS BECOMING A WORKING TOWN LIKE CHICAGO OR SEOUL OR MEXICO CITY THE NEW IMMIGRANTS MAY INJECT AN OPTIMISM INTO CALIFORNIA BUT NEVER AGAIN WILL THIS STATE BE ABLE TO RESUME ITS POSTWAR GLIBNESS LOS ANGELES IS DISCOVERING ITS TRAGIC ROLE L. A. IS DESTINED TO BECOME A CITY AND CALIFORNIA IS DESTINED TO BECOME A STATE WHERE PEOPLE ARE AWARE OF ONE ANOTHER CROWDED TOGETHER AND AWARE OF LIMITS AND AN UNRELIABLE NATURE CALIFORNIA IS BECOMING VERY MUCH THE PLACE THE SPANISH PRIESTS ENVISIONED WHEN AT THE FOUNDING OF THE CITY OF THE ANGELS THEY CAME NORTH FROM MEXICO AND BROUGHT WITH THEM IMAGES OF A BLEEDING CHRIST AND THEIR CONSOLATION COMMUNITY MR. RODRIGUEZ AN EDITOR OF THE PACIFIC NEWS SERVICE IS THE AUTHOR OF DAYS OF OBLIGATION AN ARGUMENT WITH MY MEXICAN FATHER VIKING PENGUIN THE SOFTWARE INDUSTRY IS LEARNING HOW TO ADOPT HOLLYWOOD PRODUCTION VALUES IN ITS LATEST CROP OF MULTIMEDIA SOFTWARE THAT MEANS COMPUTER OWNERS THIS YEAR WILL BE ABLE TO CHOOSE ENTERTAINMENT AND EDUCATION TITLES THAT FINALLY RISE TO T. V. PRODUCTION QUALITY WHILE OFFERING THE VIEWER A REAL INTERACTIVE ROLE UNFORTUNATELY A FEW SOFTWARE COMPANIES ARE USING THOSE SLICK HOLLYWOOD TECHNIQUES TO PRODUCE STORY LINES FEATURING HOLLYWOOD CULTURAL VALUES AS WELL ESPECIALLY GRATUITOUS VIOLENCE AS A WAY OF SOLVING PROBLEMS AND THAT MEANS RESPONSIBLE PARENTS MAY HAVE TO VETO SOME OF THE MULTIMEDIA TITLES WITH THE BEST VISUAL AND AUDIO EFFECTS ON GROUNDS OF OFFENSIVE CONTENT TO HELP FAMILIES SORT IT ALL OUT HERE'S A BRIEF RUNDOWN ON THREE OF THE EARLIEST COMPUTER TITLES TO DISPLAY REAL T. V. QUALITIES ONE TUNELAND BY A START UP COMPANY CALLED SEVENTH LEVEL IS A WONDERFUL WHOLESOME INTERACTIVE CARTOON THAT USES THE BEST ANIMATION I'VE EVER SEEN ON A COMPUTER IT MAKES A PRESCHOOLER FEEL AS IF SHE'S CONTROLLING THE ACTION IN A SATURDAY MORNING CARTOON SHOW A SECOND WALLOBEE JACK SOON TO BE MARKETED BY WORDPERFECT IS ANOTHER T. V. LIKE ANIMATED FEATURE THAT LETS GRADE SCHOOLERS SOLVE A MYSTERY THE THIRD CRITICAL PATH BY MEDIAVISION IS AN ACTION TITLE FOR OLDER KIDS AND ADULTS FEATURING A REAL ACTRESS AND REAL VIDEO SCENES THAT WASTES GREAT PRODUCTION TECHNIQUES TO TELL A HACKNEYED TALE FEATURING LITTLE BUT KILLING TUNELAND STARS A SMALL BEAR CALLED LIL HOWIE WHOSE VOICE IS PROVIDED BY COMEDIAN HOWIE MANDEL THE BEAR PLAYS HIDE AND SEEK IN A SERIES OF RICHLY ILLUSTRATED AND ANIMATED STORYBOOK SETTINGS OLD MACDONALD'S FARMYARD A TRAIN STATION AND MORE THE IMAGES AND ANIMATIONS WERE HAND DRAWN AND THEN TRANSFERRED TO THE COMPUTER USING A TECHNIQUE CALLED ANTI ALIASING WHICH ELIMINATES THE JAGGED EDGES FREQUENTLY FOUND IN COMPUTERIZED DRAWINGS THE RESULT IS STUNNING T. V. QUALITY ANIMATION THE FARM WIFE CHASING AROUND HER KITCHEN AFTER THE THREE BLIND MICE LOOKS JUST LIKE A SCENE OUT OF A WARNER BROTHERS CARTOON CHILDREN CLICKING ON NEARLY ANY OBJECT IN TUNELAND ARE REWARDED WITH ACTION SOUND OR MUSIC THE PROGRAM CONTAINS FORTY OR SO FULL LENGTH SONGS BEAUTIFULLY ORCHESTRATED IN TREATMENTS RANGING FROM CLASSICAL TO COUNTRY TO ROCK AND ROLL THERE'S EVEN A SEPARATE QUOTE JUKEBOX QUOTE PROGRAM THAT LETS KIDS JUST PLAY THE SONGS IF THEY'RE TIRED OF THE ANIMATED ADVENTURE TUNELAND WILL BE AVAILABLE IN STORES WITHIN A MONTH OR SO AT A PRICE OF UNDER FIFTY DOLLARS UNFORTUNATELY IT ONLY WORKS ON I. B. M. COMPATIBLES RUNNING MICROSOFT WINDOWS AND EQUIPPED WITH C. D. ROM PLAYERS NO MACINTOSH OR DISK BASED VERSION IS PLANNED WORDPERFECT'S WALLOBEE JACK ALSO IS AN ANIMATED CARTOON THOUGH LESS IMPRESSIVE AND LESS EXTENSIVE THAN TUNELAND AIMED AT OLDER KIDS IT FOLLOWS A KANGAROO NAMED WALLOBEE JACK AS HE SEEKS TO RETRIEVE A FAMOUS AUSTRALIAN ARTIFACT BEFORE THE VILLAIN AN EVIL CROCODILE CAN GET IT THE PLAYER INTERACTS WITH THE GAME BY TRYING TO FIND HIDDEN HOT SPOTS ON THE SCREEN CONTAINING BOMBS THAT FOIL THE VILLAIN OR LIGHT BULBS THAT HELP THE HERO THE GAME HAS A SMART ALECK CARTOONISH QUALITY THE CROCODILE IS AFFLICTED WITH FAMILIAR DEVICES LIKE EXPLODING CIGARS AND INSULTS THE PLAYER IF SHE FAILS TO FOIL HIM UNFORTUNATELY IT GETS A LITTLE TOO CUTE AT TIMES A SLICK HOST INTERRUPTS AT LEAST ONCE TO TRY TO SELL THE USER A FIFTEEN DOLLAR WALLOBEE JACK T. SHIRT AND IF YOU LOSE AND THE CROCODILE GRABS THE ARTIFACT HE PUNISHES YOU BY REBOOTING YOUR COMPUTER A DANGEROUS FEATURE WORDPERFECT WILL START SELLING WALLOBEE JACK AS PART OF ITS CONSUMER MAIN STREET LINE IN MARCH FOR BOTH P. C.S AND MACS WITH C. D. ROM DRIVES THE TITLE AND OTHERS IN THE WALLOBEE JACK SERIES WERE DEVELOPED BY TUNE ONE THOUSAND A CANADIAN COMPANY THAT HAS LICENSED THEM TO WORDPERFECT FINALLY THERE'S CRITICAL PATH BY MEDIAVISION A HIGHLY RESPECTED MAKER OF MULTIMEDIA HARDWARE THAT IS LAUNCHING A NEW SOFTWARE LINE CRITICAL PATH IS THE TALE OF A SORT OF MACHO WOMAN MUSCULAR AND ARMED WHO GETS TRAPPED IN THE FACTORY COMPLEX OF AN EVIL MADMAN IN THE AFTERMATH OF A NUCLEAR WAR SHE IS CONSTANTLY THREATENED WITH DEATH AND IS CONSTANTLY KILLING PEOPLE TO SURVIVE TECHNICALLY THE TITLE IS BRILLIANT FILMED AT A SPECIAL STUDIO USING A REAL ACTRESS AND SKILLFULLY MELDING VIDEO AND ANIMATION BUT IT'S A SHAME THAT A COMPANY WITH A GOOD REPUTATION HAS CHOSEN TO INTRODUCE SUCH GREAT TECHNOLOGY IN A TITLE THAT GLORIFIES VIOLENCE NOT ONLY IS THE THEME TRITE AND BORING IT JUST PILES ON MORE VIOLENT ENTERTAINMENT AT A TIME WHEN PARENTS ARE SAYING THAT ENOUGH IS ENOUGH AND IT ECHOES HOWEVER FAINTLY ANOTHER HOLLYWOOD THEME THAT OF THE STALKED WOMAN EVEN IF SHE IS ARMED SOME ADULTS MAY LIKE CRITICAL PATH WHICH IS FINE IT ISN'T GORY IN THE SENSE OF SHOWING BLOOD AND INTERNAL ORGANS FLYING AROUND AND I'M CERTAINLY NOT SAYING ALL INTERACTIVE COMPUTER TITLES SHOULD BE KIDS' CARTOONS OR EDUCATIONAL DRILLS ADVENTURE STORIES EVEN THOSE WITH A BIT OF VIOLENCE WOULD BE WELCOMED BY MOST REASONABLE PARENTS BUT STORIES LIKE CRITICAL PATH WITH A MAJOR FOCUS ON VIOLENT ACTION ARE A PROBLEM FOR MANY OF US CRITICAL PATH CARRIES A WARNING LABEL AND I'D LIKE TO ADD MY OWN DON'T BUY IT FOR A HOUSEHOLD WITH KIDS IF YOU'RE CONCERNED WITH THE EXCESS OF VIOLENCE IN ENTERTAINMENT I HOPE MEDIAVISION WILL CHOOSE A BETTER THEME THE NEXT TIME IT DECIDES TO USE ITS HOTTEST NEW TECHNOLOGY ONE MORNING IN MAY NINETEEN NINETY TWO CANADIAN JOURNALIST WALTER STEWART WAS ON HIS WAY TO A COURT HEARING IN DOWNTOWN TORONTO WHEN HE RAN ACROSS A BEGGAR CLUTCHING A SIGN SAYING QUOTE NO JOB THREE CHILDREN QUOTE MR. STEWART NO MOTHER TERESA JUST TOLD THE BEGGAR THAT IF HE WANTED TO SEE PEOPLE WHO HAD REAL MONEY PROBLEMS HE SHOULD FOLLOW HIM OVER TO COURTROOM C. ONE OF THE COURT OF ONTARIO GENERAL DIVISION THAT'S WHERE THE REICHMANN BROTHERS AT ONE TIME THE LARGEST PRIVATE PROPERTY DEVELOPERS IN THE WORLD NUMBER FOUR ON FORTUNE'S LIST OF THE WORLD'S WEALTHIEST FAMILIES WITH A NET WORTH OF TWELVE POINT EIGHT BILLION DOLLARS WERE SEEING THEIR HUMONGOUS REAL ESTATE EMPIRE CARVED INTO TINY PIECES WHAT COULD TURN OUT TO BE THE LARGEST BANKRUPTCY IN THE HISTORY OF MANKIND WAS TRIGGERED BY THE COLLAPSE OF THE REICHMANN'S CANARY WHARF PROJECT A DARING ATTEMPT TO LIFT A FUTURISTIC COMMERCIAL CENTER OUT OF THE SLIME ON AN OUTCROP OF LAND IN THE GROTTY EAST END OF LONDON TODAY TOURISTS CAN HOP ON A DAINTY LITTLE ELECTRIC TRAIN IN DOWNTOWN LONDON AND MAKE THE TWENTY THREE MINUTE TRUNDLE OVER TO THIS OTTAWA ON THE THAMES THERE THEY CAN SIP A CAPPUCCINO IN COMPLETE PRIVACYTHERE ARE VERY FEW TENANTS IN THE SKYSCRAPERS TO COME OUT AND BOTHER THEM THE RISE AND FALL OF THE REICHMANNS IS THE SUBJECT OF MR. STEWART'S INTELLIGENT AND UNEXPECTEDLY COMPASSIONATE BOOK TOO BIG TO FAIL MCCLELLAND AND STEWART THREE HUNDRED THIRTY FIVE PAGES TWENTY THREE DOLLARS AND NINETY FIVE CENTS UNLIKE MOST OTHER JOURNALISTS WRITING ABOUT HUMBLED TYCOONS MR. STEWART RESISTS THE IMPULSE TO GLOAT WHEREAS THE MISFORTUNES OF SUCH SNAKE OIL SALESMEN AS DONALD TRUMP ROBERT CAMPEAU AND ROSS JOHNSON HAVE GENERALLY BEEN GREETED WITH CHEERING BY THE PRESS MR. STEWART DOES NOT THINK THE FALL OF THE REICHMANNS JUSTIFIES AN OUTBURST OF SCHADENFREUDE THIS IS THE STORY OF HOW DECENT MEN REMARKABLE BUILDERS OUTSTANDING CITIZENS SCREWED UP HE WRITES ALTHOUGH PAUL AND ALBERT REICHMANN AND TO A LESSER EXTENT RALPH REICHMANN ACHIEVED THEIR GREATEST SUCCESS IN NORTH AMERICA BY BUILDING SUCH COMPLEXES AS THE WORLD FINANCIAL CENTER IN NEW YORK THEIR EMPIRE WAS FOUNDED IN EUROPE THE SAGA THAT WOULD CULMINATE IN THE DEBACLE OF CANARY WHARF IN THE EAST END OF LONDON BEGAN IN THE WEST END OF HUNGARY WHERE THE THREE WERE BORN TO SAMUEL REICHMANN A JEWISH EGG MERCHANT WHO FLED TO FRANCE THEN MOROCCO AS THE NAZIS SEIZED CONTROL OF EUROPE IN NINETEEN FIFTY FOUR SAMUEL DISPATCHED HIS OLDEST SON EDWARD TO NORTH AMERICA TELLING HIM TO WRITE BACK WHEN HE'D FOUND THE LAND OF MILK AND HONEY EDWARD ARRIVED IN NEW YORK IN THE MIDDLE OF THE XENOPHOBIC MCCARTHY ERA AND QUICKLY HEADED NORTH FOR CANADA SETTING UP AN IMPORT EXPORT BUSINESS IN TORONTO HE SOON SENT FOR THE REST OF THE FAMILY EDWARD THEN PASSES OUT OF THE STORY AS THE THREE YOUNGER BROTHERS DRIFT INTO THE CONSTRUCTION BUSINESS DEVELOPING A REPUTATION FOR ERECTING ATTRACTIVE WELL MAINTAINED OFFICE BUILDINGS IN A TIMELY AND ECONOMICAL FASHION YET BECAUSE OF THEIR ORTHODOX RELIGIOUS PRACTICES THEIR DISDAIN FOR THE MEDIA THEIR REFUSAL TO TAKE THEIR COMPANIES PUBLIC AND THEIR GENERAL LACK OF CHUMMINESS THE REICHMANNS REMAINED A SOMEWHAT SHADOWY FORCE OPERATING OUTSIDE THE CANADIAN FINANCIAL ESTABLISHMENT FOR ROUGHLY A QUARTER CENTURY OF COURSE THERE WAS GOLD IN THEM THERE SHADOWS BUYING UP REAL ESTATE AT BARGAIN BASEMENT PRICES DURING GOTHAM'S DARK RECESSION IN THE MID NINETEEN SEVENTIES THE REICHMANNS BUILT A WAR CHEST THAT ENABLED THEM TO ERECT THE AWE INSPIRING YET APPEALING WORLD FINANCIAL CENTER ALONG WITH MANY OTHER COMPLEXES IN NORTH AMERICA THEY IMBUED THESE EDIFICES WITH A PRESTIGE AND ALLURE FAR BEYOND THEIR ARCHITECTURAL MERITS BY LURING HIGH PROFILE TENANTS SUCH AS AMERICAN EXPRESS AND MERRILL LYNCH SWEETENING THE POT BY BUYING THE EXISTING HEADQUARTERS OF THEIR NEW TENANTS THEY ALSO SET OUT ON A MAJOR ACQUISITION SPREE OUTSIDE THE REAL ESTATE BUSINESS PURCHASING SUCH REDOUBTABLE ENTERPRISES AS GULF CANADA IN THEIR HEYDAY THE REICHMANNS HAD ALL THE RIGHT MOVES HIRING AWAY CIVIL SERVANTS WHO HAD PREVIOUSLY BEEN THEIR FOES DONATING VAST AMOUNTS OF MONEY TO WORTHY CAUSES AND IN THE CASE OF CANARY WHARF DEFUSING MUCH OF THE LOCAL OPPOSITION BY HIRING PEOPLE WHO LIVED IN THE NEIGHBORHOOD TO ERECT THIS COCKNEY VERSION OF THE TOWER OF BABEL WHAT BROUGHT THEM DOWN MR. STEWART BLAMES AMBITION OTHERS WILL CITE GREED STILL OTHERS WILL MENTION THE DREAD WORD STUPIDITY CANARY WHARF NEVER HAD ANY HOPE OF SUCCEEDING UNLESS THE BRITISH GOVERNMENT AGREED TO SHOULDER MOST OF THE COST OF BUILDING A SUBWAY LINK CONNECTING IT WITH THE CITY BUT THAT HOPE VANISHED ONCE THE REICHMANNS' CHAMPION MARGARET THATCHER WAS DETHRONED BY TREASONOUS SUBORDINATES AND EVEN THOUGH THE REICHMANNS WERE GIVEN TO FREE MARKET BLATHER ABOUT THE RUGGED INDIVIDUALISM OF THE ENTREPRENEUR THEY DEPENDED UPON HUGE GOVERNMENT SUBSIDIES AND LIKE THE DEBT BLOATED GOVERNMENTS THEY CRITICIZED WERE BROUGHT LOW PURELY AND SIMPLY BECAUSE THEY BORROWED TOO MUCH MONEY DURING A RECESSION ULTIMATELY LIKE EVERYONE ELSE THE REICHMANNS BLAMED THE MEDIA FOR SCARING BANKS INTO THINKING THEY COULD NOT PAY THEIR BILLS WHO STEALS MY PURSE STEALS TRASH WRITES MR. STEWART BUT HE THAT FILCHES FROM ME MY GOOD NAME PLAYS HELL WITH MY BOND RATINGS AND MAY MAKE IT IMPOSSIBLE FOR ME TO BORROW AT ALL THEIR GOOD NAME WAS FILCHED AS I SAT IN THE NEW YORK STATE ASSEMBLY LISTENING TO GOVERNOR MARIO CUOMO'S STATE OF THE STATE ADDRESS TWO WEEKS AGO I HAD THE IMPRESSION THE GOVERNOR WAS AUDITIONING FOR A PART IN YET ANOTHER REMAKE OF QUOTE INVASION OF THE BODY SNATCHERS QUOTE FOR ROUGHLY ONE HOUR IT SEEMED THAT RONALD REAGAN INHABITED THE BODY OF MARIO CUOMO NONETHELESS THIS WEEK MR. CUOMO PROPOSED A SIXTY TWO POINT FIVE BILLION DOLLAR BUDGET FOR NINETEEN NINETY FOUR THE LARGEST IN THE STATE'S HISTORY AND PROBABLY THE LARGEST IN THE U. S. IN HIS ADDRESS THE NEW IMPROVED CUOMO SAID THE WAY TO CREATE JOBS IS TO LOWER CORPORATE TAXES AND HAVE A MORE HOSPITABLE ENVIRONMENT FOR BUSINESS THIS CLAIM OBVIOUSLY WAS MADE BY THE CUOMO FACSIMILE SINCE THE REAL MARIO CUOMO SPOKE AT THE DEMOCRATIC CONVENTION IN NINETEEN NINETY TWO THAT MAN ARGUED THAT SUPPLY SIDE ECONOMICS LOWERING TAXES TO PROMOTE INVESTMENT WAS VOODOO ECONOMICS FOR TWELVE YEARS NEW YORK HAS BEEN IN A METAPHORICAL FIRESTORM NEW YORK HAS SEVEN POINT TWO PERCENT OF THE NATION'S POPULATION AND FIFTEEN PERCENT OF THE NATION'S ACCUMULATED DEBT IT HAS EIGHTEEN POINT FIVE PERCENT OF THE MEDICAID EXPENDITURES WITH ONLY EIGHT PERCENT OF THE MEDICAID RECIPIENTS IT HAS THIRTY FOUR PERCENT OF THE NATION'S WELFARE RECIPIENTS ONE POINT ONE MILLION IN NEW YORK CITY ALONE FORTY PERCENT OF ALL THE JOBS LOST IN THIS COUNTRY SINCE NINETEEN EIGHTY NINE WERE LOST HERE FIVE HUNDRED SEVENTY TWO THOUSAND JOBS WERE RELOCATED OR DISAPPEARED GOVERNOR CUOMO RECENTLY HAS PRESENTED HIMSELF AS A LOW TAX GOVERNOR HE AND HIS STAFF HAVE NOTED THAT NEW YORK'S INCOME TAX RATE IS AT ITS LOWEST LEVEL IN THIRTY YEARS THAT NEW YORK RANKS TWENTY FOURTH AMONG STATES IN THE PERCENTAGE OF INCOME TAX PAID IN STATE TAXES THAT GOVERNMENT JOBS HAVE BEEN REDUCED BY THIRTEEN PERCENT SINCE NOVEMBER NINETEEN NINETY AND THAT NEW YORK HELD THE LINE ON TAXES THROUGH THE PAST FOUR BUDGET YEARS THESE ARGUMENTS REPRESENT THE GOVERNOR'S MANTRA ABOUT HIS PERFORMANCE AND THE BASIS ON WHICH HIS NEXT CAMPAIGN WILL BE ORGANIZED BUT ARE THESE ARGUMENTS ACCURATE SINCE MR. CUOMO BECAME GOVERNOR IN NINETEEN EIGHTY THREE THE TAX RATE HAS INDEED GONE DOWN AS HE REPORTS BUT ACTUAL TAXES FOR EACH INDIVIDUAL HAVE GONE UP DRAMATICALLY IN PART THIS IS DUE TO STATE MANDATES THAT FORCE LOCALITIES TO BEAR THE FINANCIAL BRUNT OF GOVERNMENT REQUIREMENTS IN RESPONSE TO THESE STATE DEMANDS LOCALITIES HAVE TWO OPTIONS RAISE PROPERTY TAXES OR SALES TAXES THIS IS PRECISELY WHAT HAS BEEN DONE IN THE PAST ELEVEN YEARS NEW YORK HAS THE HIGHEST COMBINED STATE AND LOCAL TAXES PER CAPITA IN THE NATION THREE THOUSAND TWO HUNDRED SIXTY SEVEN DOLLARS A RATE THAT IS SIXTY TWO PERCENT HIGHER THAN THE NATIONAL AVERAGE ACCORDING TO THIS MONTH'S MONEY MAGAZINE IF ONE CONSIDERS A TWO INCOME FAMILY OF FOUR WITH INCOME OF ROUGHLY EIGHTY THOUSAND DOLLARS THE TAX BILL IN NEW YORK STATE LEAVING OUT FEDERAL TAXES IS ELEVEN THOUSAND TWENTY DOLLARS AS OPPOSED TO A ONE THOUSAND SIX HUNDRED NINETY FOUR DOLLAR TAB IN ALASKA NEW YORK'S SEVEN POINT EIGHT SEVEN FIVE PERCENT INCOME TAX IS FIFTY FOUR PERCENT ABOVE THE AVERAGE OF CONTIGUOUS STATES THE STATE'S TEN POINT THREE FIVE PERCENT CORPORATE TAX IS THE SECOND HIGHEST IN THE NATION AFTER CONNECTICUT THE DIFFERENCE BY THE WAY IS NEGLIGIBLE AND FIFTY THREE PERCENT ABOVE THE NATIONAL AVERAGE THE STATE DISCOURAGES BUSINESS ACTIVITY WITH ITS HIGH CORPORATE TAXES IT ALSO DOES SO WITH AN EFFECTIVE CAPITAL GAINS RATE OF THIRTY SIX POINT FIVE PERCENT IN NEW YORK CITY CAPITAL GAINS ARE TAXED AT AN ASTONISHING THIRTY NINE POINT SEVEN FIVE PERCENT RATE THE HIGHEST IN THE NATION THOSE NUMBERS SUGGEST WHY PRIVATE CAPITAL IS BEING CROWDED OUT OF EXISTENCE BY THE EXPANSIVE PUBLIC SECTOR AND WHY MANY PEOPLE ARE LEAVING THE STATE THESE STATISTICS ALSO INDICATE WHY NEW YORK LAGS SIGNIFICANTLY BEHIND THE REST OF THE NATION IN JOB PRODUCTION FROM NINETEEN EIGHTY THREE TO NINETEEN NINETY THREE THE PRIVATE SECTOR JOB FORCE INCREASED BY FOUR PERCENT IN NEW YORK AND CLOSE TO TWENTY FIVE PERCENT NATIONWIDE IN THE NINETEEN EIGHTIES NEW YORK RANKED FORTY SEVEN OUT OF THE FIFTY STATES IN JOB PRODUCTION HAD NEW YORK BEEN AT THE MEAN IT MIGHT WELL HAVE PAID ITS BILLS DESPITE THE GOVERNOR'S INSATIABLE APPETITE FOR SPENDING OF COURSE THAT WAS MR. CUOMO BEFORE HIS RECENT TRANSFORMATION MR. CUOMO HAS NOTED ACCURATELY I MIGHT ADD THAT GOVERNMENT JOBS HAVE BEEN REDUCED SINCE NOVEMBER NINETEEN NINETY BUT HE NEGLECTS TO POINT OUT TO UNWARY AUDIENCES THAT HE HAS BEEN GOVERNOR SINCE NINETEEN EIGHTY THREE SINCE NINETEEN NINETY THE STATE WORK FORCE HAS BEEN REDUCED BY SEVENTEEN THOUSAND FOUR HUNDRED FOURTEEN JOBS MOSTLY THROUGH ATTRITION EVEN AFTER THIS REDUCTION IS CALCULATED THE STATE GOVERNMENT HAS HAD AN INCREASE OF FIFTEEN THOUSAND TWO HUNDRED FIFTY SIX JOBS OR A SEVEN POINT FOUR THREE PERCENT INCREASE SINCE NINETEEN EIGHTY THREE NEW YORK HAS SIX HUNDRED TWENTY ONE POINT NINE STATE AND LOCAL EMPLOYEES PER TEN THOUSAND IN THE POPULATION THE HIGHEST AMONG INDUSTRIAL STATES AND NINETEEN PERCENT ABOVE THE NATIONAL AVERAGE LAST IS THE CLAIM THAT NEW YORK HELD THE LINE ON TAXES EVEN IF ONE DOESN'T VIEW MANDATES AS AN ENFORCED LOCAL TAX INCREASE THERE IS STILL THE MATTER OF STATE TAXES AND FEES IN THE PAST FOUR YEARS COUNTING THE SUSPENSION OF THE LAST YEAR OF THE PROMISED TAX CUT TAXES HAVE GONE UP MORE THAN ONE BILLION DOLLARS EACH YEAR OF COURSE MR. CUOMO CLAIMS THAT FEES AREN'T TAXES IF HE ACCEPTS THAT PREMISE THEN HE CAN DISCUSS HOLDING THE LINE ON TAXES WITH A STRAIGHT FACE DESPITE TWO TAX CUTS DURING HIS TENURE AND A REDUCTION IN THE TAX RATE THERE STILL HAS BEEN AN INCREASE OF ONE DOLLAR AND THIRTY SEVEN CENTS IN TAXES FOR EVERY TAX DOLLAR CUT ON BALANCE IT'S UNDERSTANDABLE THAT MR. CUOMO HAS BEEN TRANSFORMED INTO A BORN AGAIN TAX CUTTER HE ORCHESTRATED THE FAILURE OF NEW YORK AND NOW IS GROPING FOR A REMEDY MR. LONDON A REPUBLICAN RAN FOR GOVERNOR OF NEW YORK IN NINETEEN NINETY AND IS A CANDIDATE FOR NINETEEN NINETY FOUR HE IS A PROFESSOR OF HUMANITIES AT NEW YORK UNIVERSITY THE FOUNDATION HASN'T EVEN BEEN LAID FOR THE MUCH BALLYHOOED INFORMATION SUPERHIGHWAY BUT ALREADY GIANT COMMUNICATIONS COMPANIES ARE PEPPERING THEIR ADVERTISING WITH PROMISES OF NEW FANGLED TECHNOLOGY COMMERCIALS FOR COMPANIES SUCH AS AMERICAN TELEPHONE AND TELEGRAPH M. C. I. COMMUNICATIONS AND NYNEX ARE FLOODED WITH THE OVERUSED TERM QUOTE INFORMATION SUPERHIGHWAY QUOTE M. C. I. TROTS OUT A BEGUILING ELEVEN YEAR OLD TO TEASE THE AUDIENCE WITH DAZZLING TECHNOLOGICAL POSSIBILITIES WHILE NYNEX HAS HIRED FORMER NETWORK ANCHOR AND CORRESPONDENT MARY ALICE WILLIAMS TO GUIDE ITS CUSTOMERS AND KEEP THEM POSTED ON DEVELOPMENTS NEXT WEEK BELL ATLANTIC WILL WEIGH IN WITH A NEW CAMPAIGN THAT'S MORE GROUNDED IN REALITY IN NEW ADS SCHEDULED TO BEGIN AIRING MONDAY BELL ATLANTIC WILL DISCUSS WHAT SERVICES IT CAN PROVIDE TO ITS FOURTEEN MILLION CUSTOMERS IN SEVEN STATES NOW IT IS THE FIRST CORPORATE AD CAMPAIGN FROM BELL ATLANTIC IN FOUR YEARS IN ONE SPOT A BELL ATLANTIC EMPLOYEE SAYS WE'RE NETWORKING BUSINESS COMPUTERS TO HOME COMPUTERS SO PEOPLE CAN TELE COMMUTE ANOTHER SAYS WE'VE ALREADY SET UP DISTANCE TEAMING NETWORKS WHERE ONE TEACHER CAN TEACH STUDENTS IN DIFFERENT LOCATIONS AT THE SAME TIME IT'S AN AMAZING THING ONE OF THE INTENTS OF THIS CAMPAIGN IS NOT TO DEAL WITH APPLICATIONS THAT AREN'T REAL AND AREN'T HAPPENING RIGHT NOW SAYS RICH O'LEARY SENIOR VICE PRESIDENT AT OMNICOM GROUP'S J. WALTER THOMPSON BELL ATLANTIC'S AD AGENCY QUOTE WE'RE NOT SELLING THE FUTURE THAT'S NOT RIGHT WE WANT TO COMMUNICATE THE TYPE OF CHANGE THE COMPANY IS CURRENTLY GOING THROUGH THAT IS WHY THE ADS DON'T MENTION OR HINT AT THE PLANNED ALLIANCE WITH TELE COMMUNICATIONS ANNOUNCED IN OCTOBER IN WHICH THE COMPANIES SAID THEY WOULD SPEND FIFTEEN BILLION DOLLARS IN THE NEXT FIVE YEARS TOWARD CONSTRUCTION OF THE INFORMATION SUPERHIGHWAY THAT WOULD BE PREMATURE SAYS MR. O'LEARY THE COMMERCIALS ARE PART OF AN AGGRESSIVE CAMPAIGN WITH SEVERAL OBJECTIVES INCLUDING INFORMING CUSTOMERS THAT BELL ATLANTIC'S SEVEN COMPANIES WILL ALL BE KNOWN AS BELL ATLANTIC AS OF MONDAY IN ONE COMMERCIAL AN EMPLOYEE PAINTING A NEW SIGN SAYS I HEARD WE WERE CHANGING OUR NAME BUT I DIDN'T REALIZE I'D BE THE ONE TO ACTUALLY DO IT WE CAN BREAK THROUGH THE CLUTTER WITH A SINGLE BRAND NAME SAYS LISA SHERMAN ASSISTANT VICE PRESIDENT OF ADVERTISING AND PROMOTION AT BELL ATLANTIC A SINGLE BRAND NAME MAKES OUR CUSTOMERS UNDERSTAND THE VISION AND RANGE OF OUR SERVICES THE BELL ATLANTIC SPOTS ARE IN SHARP CONTRAST TO THE MUCH TALKED ABOUT ADS FROM RIVAL M. C. I. WHICH ARE AT BEST ARRESTING AND BEAUTIFULLY FILMED AT WORST THEY ARE CONFUSING THEN AGAIN THE M. C. I. COMMERCIALS AREN'T SELLING SPECIFIC PRODUCTS BUT RATHER THE FUTURE THE FOUR SPOTS FROM MESSNER VETERE BERGER MCNAMEE SCHMETTERER FEATURE ANNA PAQUIN THE ELEVEN YEAR OLD NEW ZEALAND ACTRESS WHO CO STARRED IN THE FILM QUOTE THE PIANO QUOTE WEARING A FLOPPY HAT AND LAURA ASHLEY TYPE CLOTHES MS. PAQUIN SAYS THERE WILL BE A ROAD IT WILL NOT CONNECT TWO POINTS IT WILL CONNECT ALL POINTS ITS SPEED LIMIT WILL BE THE SPEED OF LIGHT IT WILL NOT GO FROM HERE TO THERE THERE WILL BE NO THERE THERE WE WILL ALL ONLY BE HERE THEN A SLIDE POPS UP AGAINST A BLACK BACKGROUND WITH THE LOGO NETWORKMCI THIS IS AN INTRODUCTION TO THE STRATEGIC VISION OF M. C. I. SAYS ANGELA DUNLAP PRESIDENT OF M. C. I. CONSUMER MARKETS WE'RE TALKING ABOUT SHAPING THE FUTURE AND NOT HAVING THE FUTURE SHAPE US MS. DUNLAP SAYS THE ADS DON'T INCLUDE AN EIGHT HUNDRED TELEPHONE NUMBER QUOTE WHICH IS A DEPARTURE FROM OUR OTHER ADVERTISING AS THE CAMPAIGN UNFOLDS YOU WILL SEE HOW YOU WILL BE ABLE TO TAKE ADVANTAGE OF THE SERVICES AND VISION FROM M. C. I. WE'RE BRANDING THE VISION TO BE SURE THE ADS BREAK THROUGH THE CLUTTER IT IS UNUSUAL FOR A YOUNG GIRL TO ADDRESS THE AUDIENCE ON A COMPLEX SUBJECT MOREOVER THE NEW ZEALAND ACCENT SETS HER APART AS DO THE SETTINGS WHICH INCLUDE A SEASHORE AND A UTAH SALT FLAT MS. DUNLAP SAYS THE COMMERCIALS RECEIVED AN OVERWHELMING RESPONSE FROM CONSUMERS AND BUSINESS CUSTOMERS VIRTUALLY ALL FAVORABLE SHE LIKENS THE SPOTS TO THE INFORMATION SUPERHIGHWAY ITSELF THE MORE YOU SEE IT THE MORE YOU UNDERSTAND IT SOME MARKETING EXPERTS DON'T LIKE WHAT THEY SEE HOWEVER JOHN LISTER CHIEF EXECUTIVE OFFICER OF LISTER BULTER A NEW YORK BRAND IDENTITY CONSULTING FIRM SAYS THAT WHEN HE FIRST SAW THE M. C. I. COMMERCIALS HE THOUGHT THE SERIES WAS AN ABERRATION BECAUSE M. C. I. ADS ARE SO FOCUSED THE CONNECTION TO THE BRAND IN THESE COMMERCIALS IS HIGHLY AMBIGUOUS THE EXECUTION IS PUZZLING EVEN THOUGH IT BREAKS THROUGH THE CLUTTER MR. LISTER SAYS THE ADS QUOTE MISS THE MARK QUOTE BECAUSE QUOTE IT IS SOMEWHAT DIFFICULT TO MAKE A MEANINGFUL CONNECTION BETWEEN WHAT IS SAID AND WHAT THE BRAND IS QUOTE HAL ROSS PRESIDENT OF MAPES AND ROSS A COMMUNICATIONS RESEARCH COMPANY IN PRINCETON N. J. SAYS THAT ALTHOUGH THE M. C. I. ADS ARE DIFFERENT PEOPLE DON'T REMEMBER THEM PEOPLE IN THE AD BUSINESS PAY A LOT OF ATTENTION TO ADS LIKE THESE BUT THE POOR CONSUMER ISN'T SURE WHAT THEY'RE FOR MR. ROSS HASN'T CONDUCTED RESEARCH ON THE M. C. I. ADS NYNEX IS USING ADVERTISING TO INFORM ITS CUSTOMERS IN SIX STATES AS WELL AS TWO TOWNS IN CONNECTICUT THAT IT IS CHANGING ITS NAME FROM NEW YORK TELEPHONE AND NEW ENGLAND TELEPHONE TO NYNEX OTHER ADS FEATURING MS. WILLIAMS AT THE WHEEL OF A FRESHLY PAINTED WHITE NYNEX VAN SHOW THE FORMER REPORTER EXPOUNDING ON WHAT IS YET TO COME SOMETIMES IT IS DONE HUMOROUSLY ONE AD HAS MS. WILLIAMS SPEAKING OVER FOOTAGE SHOWING A CHAOTIC HOUSE THE T. V. IS ON THE KIDS ARE PLAYING A COMPUTER GAME THE PHONE IS RINGING AND SOMEONE IS BEEPING THERE'S LIKELY ENOUGH NOISE IN YOUR HOUSEHOLD RIGHT NOW TO MAKE THE PROSPECT OF AN INFORMATION SUPERHIGHWAY PUT YOU ON OVERLOAD THE AD'S OBJECTIVE IS TO INFORM CONSUMERS THAT NYNEX WILL MAKE THEIR LIVES SIMPLER BELL ATLANTIC'S ADS GO FARTHER SHOWING HOW THE IMPROVED TECHNOLOGY WILL BENEFIT CUSTOMERS WE'RE BEING ATTACKED ON ALL FRONTS SAYS MS. SHERMAN FROM BELL ATLANTIC WE NEED TO GET ACROSS THAT WE'RE THE LEADER IN TERMS OF ADVANCING THE INFORMATION SUPERHIGHWAY D. H. L. CORPORATION THE EXPRESS AIR FREIGHT COMPANY FIRED THE SAN FRANCISCO OFFICE OF KETCHUM ADVERTISING AND MOVED ITS ACCOUNT TO OMNICOM GROUP'S GOODBY BERLIN AND SILVERSTEIN AFTER A QUIET REVIEW OF AT LEAST THREE OTHER AGENCIES INDUSTRY EXECUTIVES SAID OFFICIALS AT D. H. L. BASED IN REDWOOD CITY CALIFORNIA DIDN'T RETURN CALLS SEEKING COMMENT D. H. L. SPENT THIRTEEN MILLION DOLLARS ON ADVERTISING IN NINETEEN NINETY TWO ACCORDING TO COMPETITIVE MEDIA REPORTING AND SIX MILLION DOLLARS IN THE FIRST TEN MONTHS OF NINETEEN NINETY THREE OTHER BAY AREA AGENCIES BELIEVED TO HAVE PITCHED THE ACCOUNT INCLUDE MANDELBAUM MOONEY ASHLEY HOFFMAN SLASH LEWIS AND KATSIN SLASH LOEB J. WALTER THOMPSON AN ADVERTISING AGENCY BASED IN NEW YORK IS OWNED BY W. P. P. GROUP YESTERDAY'S ADVERTISING COLUMN INCORRECTLY SAID IT IS OWNED BY OMNICOM GROUP KETCHUM ADVERTISING'S SAN FRANCISCO OFFICE RESIGNED IN NOVEMBER FROM D. H. L. CORPORATION'S ADVERTISING ACCOUNT THURSDAY'S ADVERTISING COLUMN INCORRECTLY STATED THAT KETCHUM HAD BEEN FIRED FROM THE BUSINESS A YOUNG WOMAN NAMED JULIE WHO HAS RECENTLY LOST HER HUSBAND AND CHILD IN A CAR ACCIDENT RETURNS TO THE FAMILY MANSION SHE FINDS THE FAMILY'S COOK WAILING IN THE KITCHEN QUOTE WHY ARE YOU CRYING QUOTE THE WIDOW WHO IS VERY BEAUTIFUL ASKS THE OLD WOMAN BECAUSE YOU'RE NOT REPLIES THE COOK JULIE'S DECISION NOT TO CRY IS THE SUBJECT OF BLUE A BAFFLING BEAUTIFUL FRENCH AND POLISH COLLABORATION DIRECTED BY KRZYSZTOF KIESLOWSKI UNABLE TO KILL HERSELF AFTER THE DEATH OF HER FAMILY JULIE DECIDES TO LIVE WITHOUT MEMORY SHE SETTLES HER FINANCIAL AFFAIRS PUTS THE HOUSE UP FOR SALE AND MOVES TO AN APARTMENT IN PARIS WHERE SHE PLANS TO LIVE IN ANONYMITY AS PART OF HER BREAK WITH THE PAST SHE MAKES LOVE WITH THE MAN WHO HAS ALWAYS ADORED HER AT A DISTANCE HER DEAD HUSBAND'S COLLABORATOR SHE TELLS HIM SHE HAS DONE THIS SO HE WILL NO LONGER FANTASIZE ABOUT HER SHE WANTS NOTHING ABOUT HER FORMER LIFE TO CONTINUE BUT THIS IS IMPOSSIBLE HER HUSBAND WAS A FAMOUS COMPOSER AND SHE WAS HIS UNOFFICIAL ADVISER SHE CAN'T BLOCK OUT THE MUSIC THEY CREATED NOT ONLY IS SHE UNABLE TO ELIMINATE THE PAST SHE REMEMBERS SHE LEARNS DISTURBING NEW THINGS ABOUT IT ZBIGNIEW PREISNER COMPOSED THE ORIGINAL MUSIC FOR THE FILM STRONG HAUNTING CHORDS THAT GIVE IT A FEELING OF DEPTH THE MUSIC AND THE FACE OF JULIETTE BINOCHE JULIE BEAUTIFULLY PHOTOGRAPHED BY SLAWOMIR IDZIAK HOLD THIS ELLIPTICAL FILM TOGETHER AT TIMES THE MOVIE SEEMS JUST SLIGHTLY MORE DEVELOPED THAN SOPHISTICATED ADVERTISING FULL OF SEDUCTIVE IMAGERY SIGNIFYING A LOT BUT REVEALING LITTLE YET THERE ARE MOMENTS OF SAD HUMOR OF GENUINE HUMANITY WHEN FOR EXAMPLE JULIE VISITS HER MOTHER IN A NURSING HOME THE MOTHER NO LONGER RECOGNIZES HER DAUGHTER DEMENTIA HAS ALLOWED THE MOTHER TO DO WHAT JULIE IS TRYING TO DO BUT CAN'T TO CUT HERSELF OFF FROM HER MEMORIES JULIE STARES AT HER MOTHER STARING AT A TELEVISION SET WATCHING A REPORT ON BUNGEE JUMPERS AS THE BUNGEE JUMPERS BELT THEMSELVES UP AND FLING THEMSELVES OVER THE EDGE OF A CLIFF THE MOTHER SAYS I CAN SEE THE WHOLE WORLD AT THE TIME OF THIS WRITING I AM WEARING A NAVY BLUE SWEATER A BLACK TURTLENECK SLACKS WITH GREEN AND PURPLISH CHECKS AND BROWN BOOTS WHEN I CHOSE THESE CLOTHES IN THE DIM LIGHT OF MY BEDROOM BEFORE PUTTING IN MY CONTACT LENSES THEY SEEMED TO MATCH BUT IN THE COOL FLUORESCENT LIGHT OF THE LADIES ROOM HERE AT THE JOURNAL I COULD SEE I MIGHT HAVE MADE A MISTAKE I OFFER THIS INSIGHT INTO MY SARTORIAL JUDGMENT OR LACK THEREOF AS A PARTIAL EXPLANATION FOR WHAT MY MAILBOX INDICATES IS THE MOST SERIOUS ERROR I'VE EVER MADE AS A FILM CRITIC ON DECEMBER TWENTY THIRD IN THIS NEWSPAPER I DESCRIBED A SCENE IN THE PELICAN BRIEF IN WHICH JULIA ROBERTS PLAYING A BEAUTIFUL LAW STUDENT AND DENZEL WASHINGTON PLAYING A REPORTER ARE RUNNING THROUGH A PARKING GARAGE TRYING TO ELUDE THE PROFESSIONAL KILLERS CHASING THEM THEY RUN RUN RUN I WROTE QUOTE THEN JUST WHEN IT SEEMS THEY ARE TRAPPED THEY LEAP FROM ONE LEVEL OF THE CAR PARK TO THE LEVEL BELOW LAND ON THE HOOD OF A CAR HOP OFF AND CONTINUE RUNNING WITHOUT MISSING A BEAT OR EVEN BREAKING A HEEL I CAN'T THINK OF A FUNNIER SCENE IN ANY OF THE CURRENT MOVIE RELEASES IF ONLY I'D LET IT GO AT THAT BUT SOME DEMON COMPELLED ME TO SAY MORE I RAN THE SCENE BACK THROUGH MY MIND THERE THEY WERE THE JOURNALIST AND THE LAW STUDENT RUNNING RUNNING RUNNING ON MY INTERNAL MOVIE SCREEN MS. ROBERTS WAS WEARING A SLIM SKIRT AND HIGH HEELS I ADDED THIS DETAIL TO THE REVIEW ON EVERY OTHER MOVIE SCREEN HOWEVER MS. ROBERTS WORE THE SLIM SKIRT AND HIGH HEELS ELSEWHERE IN THE MOVIE IN THE PARKING GARAGE SHE WAS WEARING A LOOSE SKIRT AND FLATS THIS ERROR WAS POINTED OUT BY MANY MANY READERS YOU CAN REST ASSURED THAT I WILL NEVER READ ANOTHER REVIEW OF YOURS WROTE A. D. OF IRVINE CALIFORNIA I DON'T WANT TO BE MISLED WITH ERRONEOUS FACTS AGAIN I ALWAYS HAD AN IMAGE OF THE WALL STREET JOURNAL AS BEING A PARAGON OF JOURNALISTIC QUALITY AND INTEGRITY WROTE C. C. OF LAKEWOOD OHIO BUT UNFORTUNATELY JULIE SALAMON'S REVIEW OF THE PELICAN BRIEF PROVED MY HIGH REGARD OF YOUR NEWSPAPER WAS UNDESERVED AND SO ON CLEARLY MOVIES AWAKE GREAT UNEXPECTED PASSIONS THE HANDSOME JOHN BROADWOOD AND SON INSTRUMENT THAT PLAYS THE TITLE ROLE IN THE PIANO IS SO PUMMELED AND ABUSED IN THE COURSE OF THE MOVIE THAT AFTER AWHILE I WANTED TO SHOUT STOP BATTERING THAT PIANO IT'S INNOCENT QUOTE WRITES CRAIG SELIGMAN IN A RECENT ISSUE OF PIANO AND KEYBOARD SO I GUESS I SHOULDN'T HAVE BEEN SURPRISED BY THE ARDENT WATCHDOGS WHO RALLY AROUND EVEN A REALLY SILLY MOVIE LIKE THE PELICAN BRIEF MY APOLOGIES TO ALL I AM IMPOSING A MANDATORY SENTENCE ON MYSELF SIX MONTHS OF REMEDIAL READING OF FASHION MAGAZINES VIDEO TIP I'LL ALSO WATCH FUNNY FACE A FEW MORE TIMES THOUGH THAT'S PLEASURE NOT PUNISHMENT IN THIS NINETEEN FIFTY SEVEN MUSICAL FRED ASTAIRE PLAYS A FASHION PHOTOGRAPHER WHO DISCOVERS A BOOK SHOP CLERK AUDREY HEPBURN AND TURNS HER INTO A MODEL FOR A VOGUE LIKE MAGAZINE THE GEORGE AND IRA GERSHWIN SCORE IS GREAT AND SO ARE THE CLOTHES BY GIVENCHY PFIZER INCORPORATED REPORTED SURPRISINGLY WEAK EARNINGS AND SALES GROWTH FOR THE FOURTH QUARTER AN INDICATION THAT EVEN THE STRONGEST OF DRUG COMPANIES IS BEING OVERPOWERED BY UPHEAVAL IN THE HEALTH CARE INDUSTRY NET INCOME GREW AN ANEMIC THREE POINT SIX PERCENT TO TWO HUNDRED EIGHTY EIGHT POINT NINE MILLION DOLLARS OR NINETY CENTS A SHARE FROM TWO HUNDRED SEVENTY EIGHT POINT EIGHT MILLION DOLLARS OR EIGHTY THREE CENTS A SHARE A YEAR EARLIER THE NINETEEN NINETY TWO PERIOD INCLUDED A FIFTEEN POINT THREE MILLION DOLLAR NONRECURRING PRETAX GAIN THE EARNINGS GROWTH WAS WELL BELOW ANALYSTS EXPECTATIONS SALES ROSE JUST TWO POINT TWO PERCENT TO ONE POINT NINE NINE BILLION DOLLARS FROM ONE POINT NINE FIVE BILLION DOLLARS PFIZER'S STOCK DROPPED FIVE DOLLARS OR SEVEN POINT FOUR PERCENT TO SIXTY TWO POINT EIGHT SEVEN FIVE DOLLARS MOREOVER THE DISAPPOINTING RESULTS SHOOK THE ENTIRE DRUG GROUP PULLING DOWN SHARE PRICES OF OTHER DRUG COMPANIES ESPECIALLY HARD HIT WAS SCHERING PLOUGH CORPORATION WHICH WAS ALSO VIEWED AS ONE OF THE COMPANIES BEST POSITIONED TO WEATHER THE INDUSTRY'S TURMOIL ITS STOCK FELL ONE POINT EIGHT SEVEN FIVE DOLLARS OR TWO POINT EIGHT PERCENT TO SIXTY FOUR POINT THREE SEVEN FIVE DOLLARS QUOTE SINCE PFIZER WAS THE FIRST MAJOR DRUG COMPANY TO REPORT ITS RESULTS INVESTORS BEGAN TO QUESTION WHETHER OTHER COMPANIES WOULD GENERATE NEGATIVE SURPRISES QUOTE SAID RONALD NORDMANN AN ANALYST AT PAINEWEBBER NOTING HE DIDN'T BELIEVE THE EARNINGS DISAPPOINTMENT PORTENDED SURPRISES AT OTHER PHARMACEUTICALS COMPANIES UNTIL YESTERDAY ANALYSTS HAD VIEWED PFIZER AS PROTECTED FROM THE MARKET PRESSURE HITTING OTHER DRUG COMPANIES BECAUSE ITS BEVY OF NEW PRODUCTS WAS EXPECTED TO SUSTAIN THE COMPANY'S STRONG REVENUE GROWTH THE THEORY SEEMED TO HOLD UP IN THE PAST YEAR AS PFIZER CONTINUED TO REPORT STRONG EARNINGS GAINS WHILE PROFIT GROWTH OF OTHER DRUG COMPANIES SHARPLY SLOWED HEMANT SHAH AN INDEPENDENT ANALYST SAID THIS IS A JOLT BECAUSE IT SHOWS THE WORST ISN'T BEHIND US THE WORST IS JUST BEGINNING PETER G. TOMBROS PFIZER VICE PRESIDENT OF INVESTOR RELATIONS PLAYED DOWN THE RESULTS AS AN ABERRATION CAUSED BY A NEGATIVE CURRENCY IMPACT AND WHOLESALER BUYING PATTERNS WE DON'T THINK IT'S INDICATIVE OF WHAT TO EXPECT FOR THE FUTURE HE SAID SENIOR EXECUTIVES WEREN'T AVAILABLE TO COMMENT OTHER ANALYSTS SAID THEY WERE INCLINED TO BELIEVE THE COMPANY'S ARGUMENT THAT THE QUARTER'S RESULTS DON'T REFLECT THE START OF A DOWNWARD TREND FOR PFIZER BUT BLAMED THE COMPANY FOR FAILING TO PROVIDE BETTER GUIDANCE TO ANALYSTS THEY NOTED THAT PER SHARE EARNINGS FROM ONGOING OPERATIONS GREW A RESPECTABLE FIFTEEN PERCENT ALTHOUGH GROWTH WAS BELOW ANALYSTS' CONSENSUS FORECAST OF TWENTY TWO PERCENT MR. TOMBROS SAID ANALYSTS DIDN'T APPEAR TO HAVE ANTICIPATED THE CURRENCY EFFECT WHICH REDUCED SALES THREE PERCENTAGE POINTS SALES WERE ALSO HURT BY CHANGES IN A CONSUMER HEALTH CARE TRADE PROMOTION AND LESS BUYING BY WHOLESALERS THINGS THAT ALSO APPARENTLY ESCAPED ANALYSTS' ATTENTION SOME ANALYSTS SAID THEY WERE SURPRISED BY SALES DECLINES IN THE HOSPITAL ANIMAL HEALTH CONSUMER HEALTH CARE AND FOOD SCIENCE BUSINESSES NEW PRODUCT SALES ALSO WERE SOMEHAT BELOW WHAT ANALYSTS EXPECTED BUT THE COMPANY COUNTERED THAT FOUR OF ITS NEWER PHARMACEUTICAL PRODUCTS GENERATED AN AGGREGATE SALES INCREASE OF SEVENTY ONE PERCENT DRIVING TOTAL PHARMACEUTICAL SALES UP SIX PERCENT ACCOUNTING FOR MUCH OF THE SHORTFALL IN ANALYST EXPECTATIONS WAS AN ELEVEN PERCENT DECLINE IN SALES OF THE COMPANY'S BIGGEST PRODUCT PROCARDIA X. L. A HEART DRUG A PIVOTAL QUESTION SURROUNDING PFIZER'S OUTLOOK IS WHETHER PROCARDIA X. L.'S DECLINE WAS AN ABERRATION OR MORE PROFOUND CHANGE SAID D. LARRY SMITH AN ANALYST AT HAMBRECHT AND QUIST IN NEW YORK HE NOTED THAT WHILE SALES WERE DOWN PRESCRIPTION TRENDS WERE FLAT BOLSTERING THE COMPANY'S ARGUMENT THAT WHOLESALER BUYING PATTERNS WERE BEHIND THE DECLINE MR. NORDMANN OFFERED ANOTHER EXPLANATION FOR PFIZER'S DISAPPOINTING RESULTS I BELIEVE THAT PFIZER INTENTIONALLY MANAGED DOWN EARNINGS BECAUSE THEY WANT TO BE POLITICALLY CORRECT IN FRONT OF THE INITIATION OF CONGRESSIONAL DEBATE ON THE CLINTON HEALTH CARE PACKAGE HE SAID NOTING THAT WILLIAM C. STEERE PFIZER CHAIRMAN AND CHIEF EXECUTIVE IS CHAIRMAN OF THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION A PFIZER SPOKESMAN DENIED MR. NORDMANN'S THEORY SAYING QUOTE PFIZER DOESN'T MANAGE ITS EARNINGS PFIZER MANAGES ITS BUSINESS MR. SHAH BELIEVES THE PROBLEMS THAT AFFECTED PFIZER IN THE LATEST QUARTER WILL CONTINUE THE PHARMACEUTICAL MARKET IS DETERIORATING ACROSS THE BOARD MR. SHAH ADDED THERE'S VERY LITTLE UNIT SALES GROWTH OF PRESCRIPTION DRUGS HE SAID AND DRUG COMPANIES HAVE TO OFFER DISCOUNTS OF TEN PERCENT TO TWENTY FIVE PERCENT TO BIG MANAGED CARE BUYERS WHO CONTROL A LARGE AND GROWING PORTION OF THE MARKET MOREOVER MANY OF PFIZER'S PRODUCTS INCLUDING SOME OF ITS BIGGEST FACE STRONG COMPETITION FROM GENERIC OR OTHER BRANDED DRUGS HE SAID HE PREDICTED WEAK FOURTH QUARTER RESULTS FROM OTHER DRUG COMPANIES FOR THE FULL YEAR PFIZER'S NET INCOME FELL NINETEEN PERCENT TO SIX HUNDRED FIFTY SEVEN POINT FIVE MILLION DOLLARS OR TWO DOLLARS AND FIVE CENTS A SHARE ON A SALES INCREASE OF THREE POINT FOUR PERCENT TO SEVEN POINT FOUR EIGHT BILLION DOLLARS THE RESULTS INCLUDED A FIVE HUNDRED TWENTY FIVE MILLION DOLLAR RESTRUCTURING CHARGE REPORTED IN THE THIRD QUARTER DIGITAL EQUIPMENT CORPORATION REPORTED A SURPRISE LOSS IN THE FISCAL SECOND QUARTER ON A STEEP TWELVE PERCENT DECLINE IN REVENUE TRIGGERING HEAVY SELLING OF ITS STOCK AND RAISING THE PROSPECT OF MORE COST CUTTING AND LAYOFFS DIGITAL SAID A SHARP DECLINE IN SALES OF ITS LARGER MORE PROFITABLE COMPUTERS OVERWHELMED RISING SALES OF PERSONAL COMPUTERS AND WORKSTATIONS IT WAS THE SECOND CONSECUTIVE QUARTER OF REVENUE DECLINES FOR DIGITAL WHICH HAS BEEN STRUGGLING LIKE OTHER MAKERS OF LARGE COMPUTERS TO MAKE A TRANSITION TO NEW TECHNOLOGY WILLIAM M. STEUL CHIEF FINANCIAL OFFICER SAID DIGITAL IS MOVING AHEAD WITH PREVIOUSLY DISCLOSED PLANS TO CUT ITS WORK FORCE TO EIGHTY FIVE THOUSAND JOBS BY THE END OF ITS FISCAL YEAR ON JUNE THIRTIETH A REDUCTION OF SEVEN THOUSAND JOBS OR SEVEN POINT NINE PERCENT OF THE TOTAL HE WOULDN'T SAY WHETHER THE COMPANY WOULD GO DEEPER THAN THAT LEVEL BUT ANALYSTS PREDICTED YESTERDAY THAT STILL MORE CUTS WOULD BE NECESSARY DIGITAL SHARES TUMBLED THREE DOLLARS AND SEVENTY FIVE CENTS OR TEN PERCENT TO THIRTY TWO DOLLARS AND SEVENTY FIVE CENTS APIECE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING OF TWO POINT EIGHT MILLION SHARES DIGITAL BASED IN MAYNARD MASSACHUSETTS POSTED A NET LOSS OF SEVENTY TWO POINT ONE MILLION DOLLARS OR FIFTY THREE CENTS A SHARE IN THE FISCAL SECOND QUARTER ENDED JANUARY FIRST COMPARED WITH A YEAR EARLIER LOSS OF SEVENTY THREE POINT NINE MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE THE RESULTS WERE SHARPLY BELOW MOST ANALYSTS' FORECASTS OF BREAK EVEN RESULTS OR A MODEST PROFIT AND SUGGESTED THAT A SUSTAINED TURNAROUND WAS STILL OUT OF REACH QUOTE IT'S BEEN ONE STEP FORWARD AND TWO STEPS BACK QUOTE SAID STEVEN MILUNOVICH AN ANALYST AT MORGAN STANLEY AND COMPANY DIGITAL ACHIEVED A PROFIT LAST YEAR IN ITS FISCAL FOURTH QUARTER AFTER TWO YEARS OF LOSSES AND LAYOFFS BUT HAS SLIPPED BACK INTO THE RED IN THE TWO QUARTERS SINCE THEN ANALYSTS ALSO WERE RATTLED BY THE SHARP DECLINE IN REVENUE WHICH SLUMPED TO THREE POINT TWO FIVE BILLION DOLLARS FROM THREE POINT SIX SEVEN BILLION DOLLARS A YEAR AGO DIGITAL SAID ABOUT HALF OF THE DECLINE IN REVENUE WAS BECAUSE OF CURRENCY TRANSLATIONS FROM OVERSEAS MARKETS WHICH ARE ABOUT SIXTY THREE PERCENT OF SALES MR. STEUL SAID SALES OF THE NEW ALPHA COMPUTER DESIGN ON WHICH THE COMPANY HAS STAKED MUCH OF ITS FUTURE ARE NOW RUNNING AT TEN PERCENT OF PRODUCT SALES WHILE OLDER VAX SYSTEM SALES ARE SLOWING THE VAX IS DECLINING FASTER THAN THE ALPHA IS RISING AT THIS POINT HE SAID SMALLER SYSTEMS INCLUDING PERSONAL COMPUTERS ALSO ARE SELLING WELL HE SAID BUT THESE YIELD SMALLER PROFIT MARGINS MR. STEUL SAID ALPHA SALES HAD BEEN RESTRAINED BY DELAYS IN SOME COMMERCIAL STRENGTH SOFTWARE PACKAGES FOR ALPHA HE SAID IT WOULD BE ANOTHER TWO OR THREE QUARTERS BEFORE ALL OF THE GAPS WERE FILLED DIGITAL IS ALSO SOMEWHAT DEPENDENT ON THE ADOPTION RATE OF WINDOWS N. T. A NEW SOFTWARE OPERATING SYSTEM FROM MICROSOFT CORPORATION THAT CAN RUN ALPHA MACHINES IT WAS DELAYED LAST YEAR BUT IS NOW WIDELY AVAILABLE THE FIRST ALPHA COMPUTERS WENT ON SALE LATE IN NINETEEN NINETY TWO CUSTOMERS ARE DEFERRING THE CONVERSION TO ALPHA AS LONG AS THEY CAN BECAUSE CONVERTING TO ANY NEW SYSTEM IS COSTLY AND TIME CONSUMING SAID JOHN JONES AN ANALYST WITH SALOMON BROTHERS THAT'S HURTING DIGITAL'S ABILITY TO USE ITS BEST WEAPON WHICH IS ALPHA ALPHA SYSTEMS EMPLOY REDUCED INSTRUCTION SET OR RISC CHIP DESIGN AND ARE RATED BY INDEPENDENT ANALYSTS AS THE FASTEST CHIPS CURRENTLY ON THE MARKET BUT DIGITAL HAS SO FAR BEEN UNABLE TO PERSUADE OTHER MAJOR COMPUTER MAKERS TO ADOPT IT ALPHA ALSO FACES HEAVY COMPETITION FROM OTHER NEW CHIPS INCLUDING A GROUP OF INTERNATIONAL BUSINESS MACHINES CORPORATION MOTOROLA INCORPORATED AND APPLE COMPUTER INCORPORATED WHICH BACK THE RIVAL POWERPC CHIP BARRY WILLMAN AN ANALYST WITH GOLDMAN SACHS AND COMPANY ESTIMATED THAT ALPHA SYSTEM SALES ROSE EIGHTEEN PERCENT FROM THE PRECEDING QUARTER TO ABOUT ONE HUNDRED SIXTY MILLION DOLLARS BY CONTRAST HE EXPECTS VAX SALES TO DROP THIRTY FIVE PERCENT IN FISCAL NINETEEN NINETY FOUR FOLLOWING A FIFTEEN PERCENT DECLINE IN FISCAL NINETEEN NINETY THREE MR. WILLMAN SAID PERSONAL COMPUTER SALES WERE STRONG RISING TO TWO HUNDRED FIFTY MILLION DOLLARS IN THE QUARTER OR DOUBLE YEAR AGO SALES AFTER THE RESULTS WERE REPORTED YESTERDAY STANDARD AND POOR'S CORPORATION DOWNGRADED ITS RATINGS OF DIGITAL'S ONE BILLION DOLLARS OF SENIOR DEBT TO TRIPLE B. PLUS FROM SINGLE A MINUS THE COMPANY'S COMMERCIAL PAPER WAS LOWERED TO A TWO FROM A ONE THE RATING AGENCY SAID THE DOWNGRADE REFLECTED CONTINUING LOSSES THROUGH THE FIRST HALF OF FISCAL NINETEEN NINETY FOUR AND GREATER UNCERTAINTY REGARDING THE COMPANY'S PERFORMANCE DIGITAL OPERATES IN A VERY DIFFICULT BUSINESS ENVIRONMENT EXACERBATED BY A WEAK EUROPEAN MARKETPLACE AND A MAJOR PRODUCT TRANSITION S. AND P. SAID CASH BALANCES REMAIN STRONG AT ONE POINT ONE BILLION DOLLARS BUT HAVE DECREASED FROM ONE POINT SIX BILLION DOLLARS AT SEPTEMBER THIRTIETH THE AGENCY NOTED STILL S. AND P. SAID THE CURRENT RATING REFLECTS DIGITAL'S QUOTE GOOD OVERALL MARKET POSITION A RELATIVELY STABLE AND PROFITABLE SERVICE REVENUE BASE REPRESENTING ABOUT HALF OF SALES AND A STILL STRONG CAPITAL STRUCTURE QUOTE WHILE OVERALL DEBT QUOTE REMAINS CONSERVATIVE QUOTE MICROSOFT CORPORATION THE WORLD'S LARGEST SUPPLIER OF COMPUTER SOFTWARE POSTED SHARPLY HIGHER PROFIT FOR ITS SECOND QUARTER ENDED DECEMBER THIRTY FIRST SLIGHTLY BEATING EXPECTATIONS BY EARNING TWO HUNDRED EIGHTY NINE MILLION DOLLARS OR NINETY FIVE CENTS A SHARE ON SALES OF ONE POINT ONE THREE BILLION DOLLARS NET INCOME FOR THE QUARTER ROSE TWENTY TWO PERCENT FROM TWO HUNDRED THIRTY SIX MILLION DOLLARS OR SEVENTY EIGHT CENTS A SHARE IN THE YEAR AGO PERIOD REVENUE FOR THE PERIOD ROSE TWENTY PERCENT FROM NINE HUNDRED THIRTY EIGHT MILLION DOLLARS IN THE YEAR AGO PERIOD ANALYSTS CHEERED THE RESULTS WHICH COME AMID CONCERN OVER MICROSOFT'S SLOWING GROWTH QUOTE THIS IS AN IMPRESSIVE FEAT QUOTE SAID DAVID READERMAN AN ANALYST AT LEHMAN BROTHERS SEPARATELY MICROSOFT SAID THE U. S. PATENT AND TRADEMARK OFFICE HAS OPENED THE WAY FOR THE COMPANY TO GAIN A TRADEMARK ON THE WORD WINDOWS WHEN USED TO DESCRIBE PERSONAL COMPUTER SOFTWARE PRODUCTS THE RULING REVERSED A DECISION LAST YEAR DENYING MICROSOFT THE POSSIBILITY OF A TRADEMARK ON WINDOWS THE WORLD'S PREMIER GROWTH COMPANY OVER THE PAST DECADE MICROSOFT IS NOW SO DOMINANT IN THE PERSONAL COMPUTER SOFTWARE FIELD THAT ACHIEVING ITS HISTORIC GAINS OF FIFTY PERCENT OR MORE APPEAR IMPOSSIBLE YET AS YESTERDAY'S REPORT SHOWED MICROSOFT CONTINUES TO EARN BETTER THAN TWENTY FIVE CENTS ON EVERY DOLLAR OF SALES A STUNNING NET PROFIT MARGIN BY ANY INDUSTRY'S STANDARDS IN A STATEMENT MICROSOFT ATTRIBUTED THE SOLID PERFORMANCE TO THE ONGOING ADOPTION OF ITS WINDOWS OPERATING PROGRAM AND APPLICATIONS SOFTWARE THE COMPANY ALSO CREDITED THE GREAT RESPONSE GIVEN TO ITS OFFICE PACKAGE WHICH CONTAINS A SUITE OF BASIC BUSINESS APPLICATIONS THE RESULTS WERE ANNOUNCED AFTER THE MARKET CLOSE MICROSOFT SHARES CLOSED DOWN ONE POINT THREE SEVEN FIVE DOLLARS AT EIGHTY THREE DOLLARS AND TWENTY FIVE CENTS IN NASDAQ STOCK MARKET TRADING TRADEMARK OFFICIALS WERE NOT AVAILABLE FOR COMMENT BUT MICROSOFT SAID THE FEDERAL OFFICE WILL PUBLISH A NOTICE OF ITS INTENT TO ISSUE A WINDOWS TRADEMARK IN THE COMING MONTHS OPPONENTS OF SUCH A MOVE WHO IN THE PAST HAVE EXPRESSED FEARS THAT THE TRADEMARK WOULD BE USED BY MICROSOFT TO BLUDGEON RIVALS CAN CRITICIZE THE PROPOSED ACTION BEFORE IT TAKES EFFECT INDUSTRY EXECUTIVES WHO ASKED NOT TO BE NAMED SAID IT APPEARS UNLIKELY THAT THEY WILL CONVINCE THE TRADEMARK OFFICE TO ONCE AGAIN REVERSE ITS DECISION THEY SAY THAT MICROSOFT'S GARNERING OF A WINDOWS TRADEMARK SEEMS INEVITABLE IN RECENT MONTHS MICROSOFT HAS PAINSTAKINGLY OBTAINED AFFIDAVITS FROM RIVAL SOFTWARE COMPANIES THAT SUPPORT MICROSOFT'S CONTENTION THAT WINDOWS IS NOT A GENERIC SOFTWARE TERM BUT SPECIFICALLY REFERS TO ITS PROPRIETARY OPERATING PROGRAM IN HIGH TECH INDUSTRIES BATTLES OVER TRADEMARKS HAVE TAKEN ON INCREASING IMPORTANCE AS COMPANIES SEEK TO CAPITALIZE IN THE MARKETPLACE ON THEIR INNOVATIONS MICROSOFT ARGUES THAT IT WANTS THE WINDOWS TRADEMARK TO PROTECT CUSTOMERS SO PEOPLE CAN'T CLAIM THINGS ARE WINDOWS COMPATIBLE WHEN THEY AREN'T SAID JONATHAN LAZARUS THE COMPANY'S VICE PRESIDENT OF SYSTEM STRATEGY BUT MR. LAZARUS SAID THE TRADEMARK ALSO WILL BOOST MICROSOFT'S EFFORTS TO PROMOTE WINDOWS AS A STANDARD FOR PERSONAL COMPUTERS THE RISING TIDE OF WINDOWS AS A SOFTWARE STANDARD REMAINS THE KEY TO MICROSOFT'S ROBUST HEALTH AS OF DECEMBER THIRTY FIRST THE COMPANY HELD A WHOPPING TWO POINT EIGHT BILLION DOLLARS IN CASH OR SHORT TERM INVESTMENTS PROFIT FOR THE SIX MONTHS ENDED DECEMBER THIRTY FIRST TOTALED FIVE HUNDRED TWENTY EIGHT MILLION DOLLARS OR ONE DOLLAR AND SEVENTY FOUR CENTS A SHARE COMPARED WITH FOUR HUNDRED FORTY FIVE MILLION DOLLARS OR ONE DOLLAR AND FORTY EIGHT CENTS A SHARE IN THE YEAR AGO PERIOD REVENUE TOTALED TWO POINT ONE BILLION DOLLARS FOR THE SIX MONTHS ENDED DECEMBER THIRTY FIRST COMPARED WITH ONE POINT SEVEN SIX BILLION DOLLARS IN THE YEAR AGO PERIOD FOR THIRTY TWO YEARS ROLAND QUOTE TINY QUOTE ROWLAND DOMINATED LONRHO P. L. C. OVERSEEING ITS GROWTH INTO A CONGLOMERATE WITH INTERESTS IN SUGAR MINING OIL AUTOS PUBLISHING AND HOTELS TO NAME JUST A FEW ALONG THE WAY HIS GLOBE TROTTING EXPLOITS WON HIM WIDESPREAD NOTORIETY NOW HIS CONTROVERSIAL REIGN MAY BE NEAR AN END HIS NEMESIS THE MAN HE SELECTED A YEAR AGO TO KEEP LONRHO'S TROUBLED GLOBAL EMPIRE FROM CRUMBLING UNDER DEBT GERMAN INVESTOR DIETER BOCK WITH MR. ROWLAND'S BLESSING MR. BOCK INVESTED ONE HUNDRED THIRTY FIVE MILLION POUNDS TWO HUNDRED TWO MILLION DOLLARS IN LONRHO FOR AN EIGHTEEN PERCENT STAKE IN DECEMBER NINETEEN NINETY TWO AND BECAME CO MANAGING DIRECTOR WITH MR. ROWLAND THE MEN AGREED ON A POWER SHARING FORMULA BUT HAVEN'T AGREED ON MUCH ELSE SINCE WHILE MR. ROWLAND WANTS TO KEEP THE LONRHO EMPIRE INTACT MR. BOCK WANTS TO PARE IT TO THREE CORE BUSINESSES MINING AGRICULTURE AND HOTELS AND POSSIBLY SHED MORE THAN ONE BILLION POUNDS IN ASSETS FROM THE ROLLS ROYCE DEALERSHIPS IN THE U. K. TO A BEER BREWERY IN ZAMBIA IN AN INTERVIEW MR. ROWLAND INSISTS THE COMPANY'S PROBLEMS ARE LARGELY SHORTTERM THE RESULT OF DEPRESSED PRECIOUS METALS PRICES AND UNFAVORABLE FOREIGN EXCHANGE RATES LONRHO IS FINE HE SAYS NOTING THAT THE COMPANY SOLD MORE THAN FIVE HUNDRED MILLION POUNDS IN ASSETS EVEN BEFORE MR. BOCK ARRIVED AND LONRHO'S DEBT IS NOW AT TWENTY SIX PERCENT OF EQUITY FROM SEVENTY PERCENT TWO YEARS AGO MR. BOCK FIFTY FOUR YEARS OLD ARGUES THAT LONRHO CAN'T REMAIN IN ITS CURRENT FORM SEVEN HUNDRED DIVERSIFIED COMPANIES IN SIXTY COUNTRIES OUR OWN PEOPLE AND OUTSIDERS CAN'T UNDERSTAND LONRHO HE SAYS LONRHO'S PERFORMANCE IN RECENT YEARS PROVES HIS POINT MR. BOCK'S BACKERS SAY MR. ROWLAND'S HABIT OF BORROWING HEAVILY FOR ACQUISITIONS BY THE END OF NINETEEN NINETY ONE LONRHO'S DEBT WAS ONE POINT ONE BILLION POUNDS LED TO TROUBLE WHEN THE RECESSION HIT THE COMPANY'S PRETAX PROFIT PLUNGED SIXTY ONE PERCENT IN THE FISCAL YEAR ENDED SEPTEMBER THIRTIETH NINETEEN NINETY TWO TO EIGHTY MILLION POUNDS FROM A RESTATED TWO HUNDRED FIVE MILLION POUNDS LONRHO WHICH OFTEN BOASTED THAT ITS DIVIDENDS HAD INCREASED ONE HUNDRED FOLD FROM NINETEEN SIXTY ONE TO NINETEEN NINETY SLASHED ITS NINETEEN NINETY TWO DIVIDEND TO FOUR PENCE A SHARE FROM THIRTEEN PENCE THE COMPANY'S STOCK WHICH WAS AS HIGH AS THREE HUNDRED FIFTY THREE PENCE A SHARE IN LATE NINETEEN EIGHTY EIGHT HAS PLUMMETED WITH ITS FORTUNES THE SHARES WERE TRADING AT SEVENTY TWO PENCE EACH AT THE TIME MR. BOCK MADE HIS INVESTMENT SINCE THEN THEY HAVE DOUBLED CLOSING YESTERDAY AT ONE HUNDRED FORTY NINE AND ONE HALF PENCE UP THREE AND ONE HALF IN TRADING ON THE LONDON STOCK EXCHANGE AS THE ASSET SALES HAVE PARED DEBT THE TWO MEN HAVE HAD SOME NASTY OPEN SQUABBLES MR. BOCK HAS A FULL TIME LONDON PUBLIC RELATIONS CONSULTANT PUSHING HIS CASE MR. ROWLAND WHO OWNS A SIX POINT TWO PERCENT STAKE IN LONRHO IS SAID TO HAVE HIRED A COMPANY TO INVESTIGATE MR. BOCK'S PREVIOUS BUSINESS DEALINGS THE CLASH REFLECTS DIFFERENT BUSINESS PHILOSOPHIES AND PERSONALITIES TO THE SEVENTY SEVEN YEAR OLD MR. ROWLAND NICKNAMED TINY BECAUSE OF HIS TOWERING HEIGHT BIGGER IS BETTER AND LONRHO'S DIVERSITY A STRENGTH BORN IN INDIA UNDER THE BRITISH RAJ HE ADOPTED AFRICA AS HIS HOME AND BUILT A MINOR COMPANY THE LONDON AND RHODESIA MINING AND LAND COMPANY INTO A MAJOR MULTINATIONAL MR. ROWLAND'S EXPLOITS FROM COZYING UP TO LIBYAN RULER COLONEL MOAMMAR GADHAFI TO GETTING INVOLVED IN PEACE NEGOTIATIONS BETWEEN WARRING FACTIONS IN MOZAMBIQUE AND WAGING A COSTLY LOSING BATTLE FOR CONTROL OF HARROD'S DEPARTMENT STORE WON HIM WIDESPREAD NOTORIETY IN CONTRAST MR. BOCK IS A SOFT SPOKEN ACCOUNTANT WITH A LAW DEGREE AND A LOVE OF ART BORN IN THE FORMER EAST GERMANY HE MADE HIS FORTUNE IN REAL ESTATE AND STILL IS SUPERVISORY BOARD CHAIRMAN OF ADVANTA MANAGEMENT A. G. A WESTERN GERMAN COMMERCIAL PROPERTY CONCERN SO FAR INVESTORS COMMEND MR. BOCK'S EFFORTS THE CHANGE IS THERE FOR ALL TO SEE SAYS PAUL BEAUFRERE A SECURITIES ANALYST AT JAMES CAPEL AND COMPANY LONDON MR. BOCK PREVAILED IN THE FIRST ROUND OF HIS QUEST TO REORGANIZE LONRHO GETTING THE BOARD TO APPROVE THREE OUTSIDE DIRECTORS THE FIRST SINCE NINETEEN SEVENTY FOUR AT MR. BOCK'S URGING LONRHO'S BOARD LAST MONTH ALSO AGREED TO SET A MANDATORY RETIREMENT AGE FOR DIRECTORS THOUGH THEY HAVEN'T DECIDED YET ON THE AGE MR. BOCK FAVORS AGE SIXTY FIVE THAT WOULD FORCE OUT FOUR OF MR. ROWLAND'S STAUNCHEST SUPPORTERS ON THE SIXTEEN MEMBER BOARD MR. ROWLAND HOWEVER WOULD BE EXEMPT THE ISSUE WAS SO SENSITIVE THAT ONE OF MR. ROWLAND'S BOARD SUPPORTERS SARCASTICALLY PROPOSED MAKING RETIREMENT MANDATORY AT FIFTY FIVE WHICH WOULD FORCE MR. BOCK OUT SHORTLY IN ANOTHER REBUKE TO MR. ROWLAND THE BOARD RECENTLY OVERRULED ONE OF HIS MORE CONTROVERSIAL VENTURES THE BANKROLLING BY LONRHO OF A DOCUMENTARY ABOUT THE NINETEEN EIGHTY EIGHT BOMBING OF PAN AM FLIGHT ONE HUNDRED THREE OVER LOCKERBIE SCOTLAND THE DOCUMENTARY REPORTEDLY WOULD HAVE SHOWN LIBYANS ARE BEING UNFAIRLY BLAMED FOR THE TRAGEDY THOUGH WESTERN INTELLIGENCE AGENCIES BELIEVE THEM RESPONSIBLE MR. ROWLAND HAS HAD A LONG RELATIONSHIP WITH LIBYA IN EARLY NINETEEN NINETY TWO DEFYING INTERNATIONAL SANCTIONS HE SOLD A STAKE IN LONRHO'S METROPOLE HOTEL GROUP TO LIBYAN INVESTORS MEANWHILE MR. BOCK IS FORGING AHEAD WITH EFFORTS TO IDENTIFY ADDITIONAL ASSETS THAT CAN BE SOLD HE IS SAID TO BE CONSIDERING SELLING SOME OF LONRHO'S HOTEL PROPERTIES WHILE RETAINING THE RIGHT TO MANAGE THEM ANOTHER POSSIBLE TARGET LONRHO'S EIGHT HUNDRED OR SO AFRICAN TRADING COMPANIES MR. BOCK SAYS FURTHER ASSET SALES WILL LET LONRHO ACQUIRE OTHER COMPANIES RELATED TO ITS CORE BUSINESSES NOT JUST ANY BUSINESS THAT CAN BE CHEAPLY BOUGHT HE ADDS COMPLAINING THIS HAD BEEN LONRHO'S POLICY FOR YEARS ANALYSTS EXPECT LONRHO TO REPORT PRETAX PROFITS FOR THE YEAR ENDED SEPTEMBER THIRTIETH AT ABOUT NINETY MILLION POUNDS UP TWELVE PERCENT FROM THE YEAR BEFORE BUT STILL A LONG WAY FROM THE PROFIT POTENTIAL THIS COMPANY HAS SAYS MR. BEAUFRERE THE ANALYST MR. BOCK SAYS HE HAS SCRUTINIZED LONRHO'S ACCOUNTS IN THE PAST YEAR AND IS CONVINCED LONRHO DOESN'T CONTAIN THE TYPE OF HIDDEN LOSSES THAT BROUGHT DOWN ROBERT MAXWELL'S PUBLISHING EMPIRE QUOTE THERE ARE NO BLACK HOLES QUOTE HE SAYS BUT WITH LONRHO'S INTRICATE WEB OF FINANCIAL DEALINGS THE MARKET HAS LITTLE ELSE BUT MR. BOCK'S WORD TO GO ON MR. BOCK'S SUPPORTERS SAY THEY EXPECT MR. ROWLAND WILL OPT FOR RETIREMENT SOMETIME IN THE NEXT FIFTEEN TO EIGHTEEN MONTHS I EXPECT HE WILL GET A LARGE PREMIUM FOR THE REST OF HIS SHARES AND GO SAYS ONE PERSON CLOSE TO LONRHO'S BOARD BUT MR. ROWLAND SAYS THAT WILL HAPPEN ONLY IF I HAVE AN ACCIDENT AND I'M INCAPABLE OF TAKING MYSELF TO THE OFFICE HIS SUPPORTERS NOTE MR. ROWLAND HAS BEAT THE ODDS BEFORE HE AND HIS FAMILY WERE INTERNED HERE IN WORLD WAR TWO BECAUSE HIS FATHER WAS GERMAN HE NEVER GRADUATED FROM COLLEGE AND DIDN'T STRIKE IT RICH UNTIL HE WAS FORTY AND THEY POINT OUT THAT MR. BOCK HAS NO TRACK RECORD RUNNING A LARGE DIVERSIFIED CORPORATION WHILE MR. ROWLAND RETAINS MANY ALLIES WITHIN LONRHO MR. BOCK WHO HAS AN OPTION TO INCREASE HIS LONRHO STAKE TO TWENTY FIVE PERCENT ALSO VOWS TO REMAIN I WILL HANG ON FOR SOME YEARS HE SAYS LONG ENOUGH SO THAT I CAN STEP DOWN WITHOUT ADVERSELY AFFECTING THE SHARE PRICE WITH THE LOS ANGELES AREA GRIPPED BY TRAFFIC DELAYS AND FACING HUNDREDS OF MILLIONS OF DOLLARS IN COSTS TO REPAIR ROADS AND OTHER INFRASTRUCTURE MIGHT GOVERNOR PETE WILSON TAKE A CUE FROM THE PRESIDENTIAL RESPONSE TO HURRICANES ANDREW AND INIKI GEORGE BUSH ORDERED THE RELAXATION OF DAVIS BACON QUOTE PREVAILING WAGE QUOTE STANDARDS TO FACILITATE REPAIRS IN FLORIDA AND HAWAII FROM THOSE NATURAL DISASTERS CALIFORNIA WITH ITS OWN LABOR LAW EXTENDING UNION RULES TO PUBLIC WORKS PROJECTS ENJOYS A SIMILAR OPPORTUNITY GOVERNOR WILSON CAN'T EXPECT BILL CLINTON TO FOLLOW IN THE BUSH FOOTSTEPS THE NEW PRESIDENT WAS QUICK TO UNDO HIS PREDECESSOR'S DAVIS BACON CHANGES UPON TAKING OFFICE AS A PAYBACK FOR ORGANIZED LABOR'S SUPPORT ON A TRIP TO CALIFORNIA YESTERDAY MR. CLINTON DIDN'T OFFER TO RELAX THE RULES AS THEY APPLY MOST SIGNIFICANTLY TO FEDERAL INTERSTATE HIGHWAYS CALIFORNIA HAS PLENTY OF ITS OWN PUBLIC WORKS TO REPAIR HOWEVER AND NONUNION CONTRACTORS ESTIMATE A FIFTEEN PERCENT TO TWENTY PERCENT SAVING IF BUILDERS ARE SPARED NOT ONLY THE EXPENSE OF PAYING THE UNION WAGE BUT ALSO OF SHOULDERING THE WORK RULES AND THE PAPERWORK OF ASCERTAINING EXACTLY WHAT IS OWED EACH WORKER UNDER THE COMPLEX PREVAILING WAGE SCHEDULE EACH CRAFT MAY HAVE SEVERAL CLASSIFICATIONS AND THE RATES CHANGE BY COUNTY IN FACT GOVERNOR WILSON MIGHT USE THIS OCCASION TO INITIATE SOME LONG OVERDUE CHANGES IN THE WAY HIS STATE LIKE MANY OTHERS ASSISTS THE CRAFT UNIONS IN RESTRICTING EMPLOYMENT AND TRAINING OPTIONS MORE THAN SEVENTY FIVE PERCENT OF THE CONSTRUCTION BUSINESS TODAY IS NONUNION BUT WHEN IT COMES TO PUBLIC WORKS THE UNION APPRENTICESHIP GATEKEEPERS HOLD TREMENDOUS SWAY THE RESULT IS THAT HUNDREDS OF THOUSANDS OF BLUE COLLAR JOBS PAYING DECENT WAGES HAVE BEEN STIFLED UNDERREPRESENTED GROUPS IN THE LABOR FORCE HAVE SUFFERED MOST NONUNION TRAINING PROGRAMS ARE OPENING HERE AND THERE BUT UNIONS HAVE BEEN ABLE TO DELAY MOST OF THEM WITH UNENDING PROCEDURAL PLOYS BEFORE SYMPATHETIC STATE REGULATORS THE CALIFORNIA APPRENTICESHIP COUNCIL IS NO EXCEPTION GOVERNOR WILSON WHO APPOINTS THAT BODY MIGHT WISH TO SUGGEST A CONTRARY COURSE PRIOR TO THE COUNCIL'S EARLY FEBRUARY MEETING AT WHICH MORE NONUNION PROPOSALS ARE ON THE TABLE THE CALIFORNIA DISASTER WHICH SEVERAL POLITICIANS SAY WILL REQUIRE YET ANOTHER INCREASE IN THE STATE SALES TAX RAISES OTHER POSSIBILITIES THE EARLY TRACK RECORD OF PRIVATIZED ROAD CONSTRUCTION SUGGESTS WORK COULD BE DONE CHEAPER AND FASTER WHERE ROADWAYS COULD BE TURNED INTO TOLLWAYS THIS WOULD ALSO PERMIT ADOPTION OF CONGESTION PRICING EVEN FOR TRADITIONAL HIGHWAYS THE STATE DEPARTMENT OF TRANSPORTATION HAS BEEN TRYING TO CONTRACT OUT DESIGN ENGINEERING AND LANDSCAPE WORK BUT ITS UNIONIZED STAFF LAST YEAR SUCCEEDED IN A LAWSUIT TO BLOCK MUCH OF THAT EFFORT POLICYMAKERS COULD RIGHT THAT WRONG MEANTIME LEGALIZED JITNEY SERVICE COULD HELP ALLEVIATE TRAFFIC CONGESTION AN EARTHQUAKE IS A DRAMATIC REMINDER OF THE IMPORTANCE OF ROADWAYS AND OTHER MAJOR PUBLIC PROJECTS THE COSTS OF GETTING SUCH FACILITIES BUILT AND NOW REBUILT HAS A LOT TO DO WITH BUSINESS COMPETITIVENESS IN ANY JURISDICTION RECESSION WEARY CALIFORNIA COULD USE THE MISFORTUNE OF ITS LATEST CALAMITY TO CREATE A BETTER CLIMATE FOR ENTERPRISE AND EMPLOYMENT IT IS WORTH NOTING THAT FRESHER WINDS THAN WHITEWATER DEVELOPMENT ARE BLOWING ACROSS THE AMERICAN POLITICAL LANDSCAPE TODAY THERE'S MUCH WONDERMENT FOR EXAMPLE THAT QUOTE THE BOOK OF VIRTUES QUOTE BY WILLIAM BENNETT SUDDENLY APPEARED THIS WEEK AS THE NATION'S NUMBER ONE BOOK OF NONFICTION ON THE NEW YORK TIMES BESTSELLER LIST THAT A BOOK OF MORAL TALES SHOULD OVERTAKE PRIVATE PARTS BY HOWARD STERN SUGGESTS THAT INDEED SOME NEW VOICES ARE FINDING THEIR WAY INTO THE MAINSTREAM OF THE NATION'S DIALOGUES SIMILARLY IN ELECTORAL POLITICS THREE NEW REPUBLICANS TOOK OFFICE THE PAST FEW WEEKS NEW JERSEY'S GOVERNOR CHRISTIE WHITMAN VIRGINIA GOVERNOR GEORGE ALLEN AND NEW YORK CITY'S NEW MAYOR RUDOLPH GIULIANI THESE THREE DESERVE ATTENTION BECAUSE THEIR EARLY STATEMENTS AND ACTIONS SUGGEST THAT U. S. POLITICS MAY BE TAKING A TURN TOWARD CLARITY CLARITY IS THE THEME WE'VE CHOSEN BECAUSE AT THE NATIONAL LEVEL IT ISN'T VERY MUCH IN EVIDENCE WHATEVER THE REASON THE CLINTON PRESIDENCY REFUSES TO COME INTO FOCUS THE NEW PRESIDENT'S AMBIVALENT POLITICAL CHARACTER IS FRUSTRATING BECAUSE HE SUCCEEDED A PRESIDENT WHOSE POLITICS HAD COLLAPSED INTO A MUDDLE THE NEW DEMOCRAT WHO WON THE ELECTION SHOWS UP ONLY INTERMITTENTLY AMID THE CLOUDS NOW OUT IN THE COUNTRY COME NEWLY ELECTED G. O. P. POLITICIANS WHO ARE LETTING VOTERS KNOW PRECISELY WHAT THEY ARE GETTING MRS. WHITMAN WHO WAS INAUGURATED TUESDAY DISPENSED WITH THE TRADITIONAL HIGH FLOWN RHETORIC TO STARTLE HER AUDIENCE WITH A SERIES OF POLICY ANNOUNCEMENTS A FIVE PERCENT CUT IN NEW JERSEY'S INCOME TAXES RETROACTIVE TO JANUARY FIRST NOTING THAT WHEN SHE ANNOUNCED HER TAX CUT PLAN DURING THE CAMPAIGN THE SKEPTICS GROANED ACTUALLY THEY MOCKED THE IDEA AS DEAD AND BURIED REAGANISM SHE SAID IF PRESIDENT CLINTON AND HIS CONGRESS CAN REACH BACKWARD INTO TIME AND RAISE YOUR TAXES RETROACTIVELY YOUR GOVERNOR AND YOUR LEGISLATURE CAN CUT THEM RETROACTIVELY SHE PROPOSED ELIMINATING ALL INCOME TAXES FOR THOSE EARNING LESS THAN SEVEN THOUSAND FIVE HUNDRED DOLLARS AND A CUT IN THE CORPORATE BUSINESS TAX RETROACTIVE TO JANUARY FIRST AND SHE EXPLICITLY ENDORSED JERSEY CITY'S SCHOOL VOUCHER PROPOSAL WE SHOULD GIVE MAYOR BRET SCHUNDLER THE GREEN LIGHT TO TEST SCHOOL VOUCHERS AND INVITE THE TOP SCHOOL EXPERTS IN THE NATION TO MEASURE THE RESULTS THE STATE'S EDUCATION ESTABLISHMENT THE UNIONS THE SCHOOL BOARDS ASSOCIATION EVEN THE N. DOUBLE A. C. P. AND NOW OPPOSES THE IDEA MRS. WHITMAN SAID SOMETHING ELSE THAT BROUGHT TO MIND THE POLITICS OF A FORMER CALIFORNIA GOVERNOR WHO THEN BECAME PRESIDENT SHE SAID OUR PRINCIPAL PROBLEMS ARE NOT THE PRODUCT OF GREAT ECONOMIC SHIFTS OR OTHER VAST UNSEEN FORCES THEY ARE THE CREATION OF GOVERNMENT QUOTE INTERESTINGLY VIRGINIA GOVERNOR GEORGE ALLEN WAS MAKING ALMOST PRECISELY THE SAME POINT THE SAME DAY IN HIS STATE OF THE COMMONWEALTH SPEECH GOVERNOR ALLEN WANTS TO REQUIRE A SUPERMAJORITY VOTE TO RAISE INCOME OR SALES TAXES TO LIMIT THE EXPANSION OF STATE GOVERNMENT HE WANTS TO REQUIRE AN ECONOMIC IMPACT ANALYSIS BEFORE ANY NEW REGULATIONS ARE ENACTED AND HE RIPPED INTO THE SPENDING MANDATES THAT THE STATE HAS BEEN DUMPING ONTO LOCAL GOVERNMENTS BOTH MR. ALLEN AND MRS. WHITMAN ENDORSED THE THREE STRIKES AND YOU'RE OUT PLAN FOR CRIMINALS WHO COMMIT THREE MAJOR FELONIES AND MR. ALLEN WANTS TO GET INITIATIVES AND REFERENDUMS ON THE BALLOT WHICH NEW JERSEY REPUBLICANS PROMISED TO DO A FEW YEARS AGO THEN RENEGED MEANWHILE IN NEW YORK CITY MAYOR GIULIANI CALLS FOR PRIVATIZATION EFFORTS BRINGING UP THE REAR AFTER RUSSIA BUT BETTER LATE THAN NEVER THE EARLY DAYS OF THE GIULIANI ADMINISTRATION ARE INTRIGUING BECAUSE NEW YORKERS MORE THAN ANY ONE COMPLAINT HAD BECOME PARTICULARLY MOROSE ABOUT THE GENERAL CONDITIONS OF LIFE IN THEIR CITY SO THE MAYOR HAS ORDERED THE POLICE TO MOVE AGAINST AGGRESSIVE PANHANDLERS AND SQUEEGEE MEN AND HE REFUSES TO MEET WITH REIGNING DEMAGOGUE AL SHARPTON AGAIN ALL THIS STANDS IN CONTRAST TO THE GENERAL MUDDLE IN WASHINGTON WHERE SEEMINGLY NO ACTION MAY BE TAKEN THAT IS NOT HEDGED IN FIVE DIRECTIONS TO APPEASE FIVE ENTRENCHED CONSTITUENCIES SO FAR THESE THREE SEEM ABLE TO ACTUALLY THINK FOR THEMSELVES AS TO WHAT COMPASS GUIDES THESE REPUBLICANS GOVERNOR ALLEN EXPLICITLY CONNECTS HIMSELF TO OUR JEFFERSONIAN CONSERVATIVE PRINCIPLES HE CALLS IT CREATIVE CONSERVATISM OBSERVERS PROFESS TO BE SLIGHTLY SURPRISED AT THE SELF ASSURED CONFIDENCE WITH WHICH CHRISTIE WHITMAN HAS TAKEN CONTROL OF HER STATE'S AGENDA MAYBE IT'S NOT SO SURPRISING IN NINETEEN NINETY AT THE END OF A DEBATE WITH BILL BRADLEY BOTH WERE ASKED WHICH FIGURE IN PUBLIC LIFE THEY MOST ADMIRED SHE REPLIED MARGARET THATCHER AS WE SAID CLARITY MAY BE RETURNING TO AMERICA'S POLITICS COMPILED BY PUBLISHERS WEEKLY FROM DATA FROM LARGE CITY BOOKSTORES BOOKSTORE CHAINS AND LOCAL BESTSELLER LISTS ACROSS THE U. S. COPYRIGHT NINETEEN NINETY FOUR REED PUBLISHING U. S. A. LAZARD FRERES AND COMPANY AND MERRILL LYNCH AND COMPANY HAVE MADE SIGNIFICANT CHANGES IN THE MANAGEMENT OF THEIR MUNICIPAL BOND OPERATIONS IN THE WAKE OF A VARIETY OF FEDERAL STATE AND LOCAL INVESTIGATIONS THAT BEGAN LAST MAY LAZARD HAS QUIETLY INSTALLED A NEW HEAD OF ITS PUBLIC FINANCE DEPARTMENT WHILE MERRILL HAS REPLACED TWO OF THE THREE MANAGING DIRECTORS WHO WERE PUT ON ADMINISTRATIVE LEAVE LAST YEAR ACCORDING TO MUNICIPAL BOND FINANCE OFFICIALS LAZARD PARTNER MICHAEL DEL GIUDICE WAS REMOVED FROM HIS POST AS CHIEF OF LAZARD'S PUBLIC FINANCE DEPARTMENT LATE LAST YEAR MR. DEL GIUDICE A FORMER CHIEF OF STAFF FOR NEW YORK GOVERNOR MARIO CUOMO IS SPENDING MUCH OF HIS TIME HELPING LAZARD ATTORNEYS DEFEND AGAINST ALLEGATIONS OF WRONGDOING BY INVESTIGATORS IN LOUISIANA BOSTON NEW YORK CITY AND WASHINGTON D. C. WHERE MR. DEL GIUDICE TESTIFIED BEFORE CITY COUNCIL MEMBERS ON TUESDAY MR. DEL GIUDICE WAS SUCCEEDED BY JOHN TAMAGNI THE PARTNER WHO RAN THE DEPARTMENT WHEN MR. DEL GIUDICE FIRST JOINED LAZARD IN NINETEEN EIGHTY FIVE A LAZARD SPOKESMAN DECLINED TO COMMENT ON MANAGEMENT CHANGES IN THE FIRM'S MUNICIPAL BOND BUSINESS BUT LAZARD INSIDERS SOUGHT TO DOWNPLAY AN INDUSTRY PERCEPTION THAT MR. DEL GIUDICE WAS DEMOTED SAYING HE CONTINUES TO FUNCTION AS A PART TIME INVESTMENT BANKER BUT INDUSTRY EXECUTIVES SAY MR. DEL GIUDICE FELL OUT OF FAVOR BECAUSE HE WAS RESPONSIBLE FOR HIRING A NUMBER OF CURRENT AND FORMER LAZARD EMPLOYEES WHOSE ACTIONS IN THE MUNICIPAL BOND BUSINESS ARE UNDER INVESTIGATION AMONG THOSE WHOM MR. DEL GIUDICE FIRST BROUGHT TO LAZARD WAS MARK FERBER THE FORMER HEAD OF LAZARD'S BOSTON OFFICE THE MASSACHUSETTS INSPECTOR GENERAL HAS ALLEGED THAT LAZARD AND MERRILL HAD A SECRET FEE SPLITTING ARRANGEMENT THAT HELPED MERRILL WIN BUSINESS FROM A STATE AGENCY THAT LAZARD'S MR. FERBER WAS ADVISING BOTH MERRILL AND MR. FERBER HAVE DENIED WRONGDOING THEIR ACTIONS ARE BEING INVESTIGATED BY BOTH THE SECURITIES AND EXCHANGE COMMISSION AND THE U. S. ATTORNEY'S OFFICE IN BOSTON LAZARD IS UNDER CLOSE SCRUTINY BY FEDERAL PROSECUTORS IN BOSTON WHO RECENTLY SENT SUBPOENAS TO ABOUT FIFTY OTHER CITIES INCLUDING LOS ANGELES CHICAGO AND INDIANAPOLIS WHERE LAZARD HAS ACTED AS AN ADVISER LAZARD ALSO IS BEING INVESTIGATED BY A FEDERAL GRAND JURY IN LOUISIANA IN CONNECTION WITH AN ALLEGEDLY SECRET COMMISSION SPLITTING ARRANGEMENT THAT BENEFITED FIRST COMMONWEALTH SECURITIES A POLITICALLY CONNECTED FIRM BASED IN NEW ORLEANS LAZARD AND C. S. FIRST BOSTON INCORPORATED WHICH CO MANAGED A SIX HUNDRED MILLION DOLLAR BOND SALE ALLEGEDLY GAVE FIRST COMMONWEALTH ABOUT TWO HUNDRED FORTY THOUSAND DOLLARS TO GET BUSINESS MR. FERBER HAD NO ROLE IN THAT SALE AND LAZARD HAS DECLINED COMMENT ON THE MATTER FIRST COMMONWEALTH REPRESENTATIVES COULDN'T BE REACHED FOR COMMENT MEANWHILE A MERRILL SPOKESMAN CONFIRMED IT HAS REPLACED TWO OF THE THREE EXECUTIVES SUSPENDED PENDING THE COMPLETION OF A FEDERAL INQUIRY INTO THE SALE OF TWO POINT NINE BILLION DOLLARS IN NEW JERSEY TURNPIKE AUTHORITY BONDS THE THIRD EXECUTIVE'S DUTIES HAVE BEEN ASSUMED BY THE HEAD OF MERRILL'S MUNICIPAL BOND DEPARTMENT DAVID ANDERSON HAS BEEN NAMED ACTING HEAD OF MERRILL'S MUNICIPAL BOND SYNDICATE DESK SUCCEEDING DENNIS BOYLE JEFFREY HUMBER IS HEAD OF MERRILL'S MUNICIPAL BUSINESS IN THE NORTHEAST SUCCEEDING DENNIS BAUMRIN EDWARD SHERIDAN WHO HAS BEEN DIRECTOR OF MERRILL'S MUNICIPAL MARKETS DIVISION SINCE MARCH NINETEEN NINETY TWO HAS TAKEN OVER THE DUTIES PREVIOUSLY CARRIED OUT BY MARSHA EISENBERG HEAD OF MERRILL'S PUBLIC FINANCE GROUP MR. BOYLE MR. BAUMRIN AND MS. EISENBERG REMAIN ON LEAVE AND MERRILL IS CONTINUING TO PAY THEIR LEGAL FEES FEDERAL PROSECUTORS IN MANHATTAN HAVE BEEN INVESTIGATING MERRILL'S NEW JERSEY DEALINGS SINCE LAST MAY LAZARD SEEMS TO HAVE BEEN HURT MUCH MORE THAN MERRILL AS A RESULT OF THE MUNICIPAL BOND INQUIRIES ACCORDING TO THE BOND BUYER AN INDUSTRY PUBLICATION MERRILL WAS THE TOP SENIOR MANAGER OF TAX EXEMPT BONDS LAST YEAR DESPITE ITS INVOLVEMENT IN SEVERAL INVESTIGATIONS HOWEVER LAZARD ONE OF THE TOP TEN UNDERWRITERS IN NINETEEN NINETY TWO SLIPPED IN RANK TO NUMBER FIFTY ONE LAST YEAR ACCORDING TO THE BOND BUYER LAZARD ALSO LOST ONE OF ITS MOST IMPORTANT MUNICIPAL BOND BANKERS LAST WEEK FRANK STROM A QUANTITATIVE SPECIALIST JOINED A. I. G. FINANCIAL PRODUCTS A UNIT OF NEW YORK BASED AMERICAN INTERNATIONAL GROUP INCORPORATED THIS WEEK AND SEVERAL LAZARD BANKERS WHO WERE ONCE BIG PRODUCERS INCLUDING RICHARD POIRIER JUNIOR HAVE DONE LITTLE BUSINESS SINCE THE INVESTIGATIONS BEGAN ACCORDING TO LAZARD INSIDERS RALPH HORN FIFTY TWO YEARS OLD WILL BECOME CHIEF EXECUTIVE OF THIS BANK HOLDING COMPANY APRIL NINETEENTH MR. HORN HAS BEEN PRESIDENT AND CHIEF OPERATING OFFICER HE WILL RETAIN THE FORMER TITLE HE SUCCEEDS RONALD TERRY SIXTY THREE WHO WILL REMAIN CHAIRMAN UNTIL DECEMBER NINETEEN NINETY FIVE MR. TERRY HAS BEEN CHIEF EXECUTIVE FOR THE PAST TWENTY YEARS AN INSURER FOR A WORLD TRADE CENTER TENANT IS INTENSIFYING EFFORTS TO AVOID LIABILITY ON THE GROUNDS THAT THE BUILDINGS' OPERATOR ALLEGEDLY IGNORED WARNINGS THAT THE COMPLEX WAS VULNERABLE TO TERRORIST ATTACK PHOENIX ASSURANCE COMPANY OF NEW YORK IS SCHEDULED TO GO TO STATE COURT HERE TODAY TO SEEK INTERNAL REPORTS OF THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY WHICH OPERATES THE WORLD TRADE CENTER PHOENIX CONTENDS IN A PENDING LAWSUIT THAT THE PORT AUTHORITY NEGLIGENTLY FAILED TO HEED WARNINGS IN SEVERAL SUCH REPORTS GOING BACK TO NINETEEN EIGHTY SIX THAT LAX SECURITY LEFT IT OPEN TO JUST THE TYPE OF ATTACK THAT WAS CARRIED OUT ON FEBRUARY TWENTY SIXTH NINETEEN NINETY THREE WITH A BOMB HIDDEN IN A VEHICLE IN THE COMPLEX'S UNDERGROUND PARKING GARAGE OVERALL INSURERS FACE AN ESTIMATED FIVE HUNDRED TEN MILLION DOLLARS IN PROPERTY CLAIMS STEMMING FROM THE FEBRUARY BOMBING BUT PHOENIX WHICH IS FACING AS MUCH AS TEN MILLION DOLLARS IN CLAIMS HAS MAINTAINED IN ITS LAWSUIT THAT IT SHOULDN'T HAVE TO PAY BECAUSE OF THE ALLEGED NEGLIGENCE OF THE PORT AUTHORITY AND OTHER INSURERS HAVE SAID THEY ARE LOOKING INTO TAKING A SIMILAR POSITION THE INSURERS' ARGUMENTS HOWEVER DEPEND LARGELY ON REPORTS THAT THEY HAVEN'T SEEN ALTHOUGH REPORTS OF THE WARNINGS AND RECOMMENDATIONS CAME TO LIGHT IN PUBLIC HEARINGS SHORTLY AFTER THE BOMBING THE PORT AUTHORITY HAS MAINTAINED THAT THE SECURITY PLANS ARE CONFIDENTIAL AND SHOULDN'T BE TURNED OVER AS PART OF THE LITIGATION NEW YORK STATE JUDGE WALTER M. SCHACKMAN HAS SCHEDULED A HEARING FOR TODAY ON PHOENIX'S REQUEST FOR THE SECURITY DOCUMENTS IF THE JUDGE GRANTS PHOENIX'S MOTION TO COMPEL ACCESS TO THE REPORTS HE EFFECTIVELY WOULD CLEAR THE WAY FOR OTHER INSURERS TO USE THE DOCUMENTS IN SIMILAR SUITS THAT ARE EXPECTED AGAINST THE PORT AUTHORITY SAID BLAIR FENSTERSTOCK AN ATTORNEY FOR PHOENIX A UNIT OF SUN ALLIANCE GROUP P. L. C. OF LONDON QUOTE WE UNDERSTAND THAT THE REPORTS ANALYZED THE EFFECTIVENESS OF EXISTING SECURITY SYSTEMS AT THE WORLD TRADE CENTER AND MADE SPECIFIC RECOMMENDATIONS QUOTE SAID MR. FENSTERSTOCK OF THE NEW YORK OFFICE OF LAW FIRM SUTHERLAND ASBILL AND BRENNAN PHOENIX HAD INSURED TELEPORT COMMUNICATIONS GROUP INCORPORATED A TRADE CENTER TENANT THAT MAINTAINS PHONE SYSTEMS AND EQUIPMENT FOR THE PORT AUTHORITY FOR AS MUCH AS TEN MILLION DOLLARS IN PROPERTY DAMAGE AND LOSSES DUE TO BUSINESS INTERRUPTION THE INSURER IS NOW SEEKING THAT AMOUNT IN DAMAGES FROM THE PORT AUTHORITY MR. FENSTERSTOCK SAID THAT THE INTERNAL SECURITY REPORTS WHICH WERE DISCUSSED IN TESTIMONY BEFORE A STATE LEGISLATIVE PANEL INVESTIGATING SECURITY AT THE COMPLEX MADE RECOMMENDATIONS SOME EASY AND INEXPENSIVE THAT COULD HAVE BEEN DONE TO INCREASE SECURITY HE SAID THE REPORTS FLAGGED THE CENTER'S UNDERGROUND PARKING GARAGE AS ONE OF ITS BIGGEST POINTS OF VULNERABILY TO TERRORIST ATTACK KNOWING THE RISK IN GENERAL AND IN SPECIFIC OF A POTENTIAL TERRORIST ATTACK THE PORT AUTHORITY DECLINED TO SPEND MONEY IN WAYS THAT COULD HAVE PROTECTED THE WORLD TRADE CENTER THE LAWYER SAID SEVERAL OTHER INSURERS HAVE FILED SUCH CLAIMS KNOWN AS SUBROGATION CLAIMS STEMMING FROM THE WORLD TRADE CENTER BOMBING SAID ALLEN MORRISON A SPOKESMAN FOR THE PORT AUTHORITY A QUASI GOVERMENTAL AGENCY INSURERS THAT HAVE NOTIFIED THE PORT AUTHORITY THAT THEY MIGHT MAKE SUCH CLAIMS HAVE UNTIL A YEAR AFTER THE BOMBING TO DO SO MR. MORRISON SAID WE MAINTAIN THAT THE DOCUMENTS MUST REMAIN CONFIDENTIAL BECAUSE TO RELEASE THEM WOULD PUBLICLY DISPLAY THE VULNERABILITIES OF THE FACILITY WHICH ARE DISCUSSED IN DETAIL THE PORT AUTHORITY ALSO HAS SAID THAT IT WASN'T NEGLIGENT IN ITS RESPONSE TO THE RECOMMENDATIONS MR. MORRISON SAID THE PORT AUTHORITY ADOPTED MOST OF THE SECURITY SUGGESTIONS BUT IT REJECTED A RECOMMENDATION THAT THE PUBLIC PARKING GARAGE BE CLOSED HE SAID THE PORT AUTHORITY BELIEVES THAT IT MADE THE CORRECT DECISION AT THE TIME BUT HAS DECIDED SINCE THE BOMBING THAT IT WON'T REOPEN THE GARAGE TO PUBLIC PARKING IN A RULING LAST MONTH JUDGE SCHACKMAN INSTRUCTED PHOENIX TO NARROW ITS REQUEST FOR THE SECURITY DOCUMENTS BUT DIDN'T ADDRESS WHETHER HE WOULD ORDER THEM TURNED OVER TO THE PORT AUTHORITY THE INSURER HAS SINCE ASKED THE PORT AUTHORITY FOR FOUR SPECIFIC REPORTS PLUS ANALYSES AND MEMOS IN RESPONSE TO THE REPORTS MR. FENSTERSTOCK SAID JUDGE SCHACKMAN SAID IN HIS DECISION LAST MONTH THAT THE PORT AUTHORITY'S CONCERNS ABOUT CONFIDENTIALITY COULD BE SATISFIED WITH LESS DRASTIC MEASURES THAN BARRING ALL ACCESS TO THE DOCUMENTS FOR INSTANCE HE SAID PHOENIX COULD BE ORDERED TO KEEP THE DOCUMENTS CONFIDENTIAL ONE MIGHT ASK WHETHER IT IS APPROPRIATE TO OFFER A VICTIM OF A BOMBING A DAY IN COURT TO PROVE THAT A GOVERNMENTAL LANDLORD WAS LAX IN CARRYING OUT ITS DUTIES WHILE DENYING THE TENANT ACCESS TO THE DOCUMENTS AND THE TESTIMONY NEEDED TO ESTABLISH THE LAXITY JUDGE SCHACKMAN SAID IN THE OPINION SEPARATELY THE TRIAL AGAINST THE FOUR MEN ACCUSED OF CONSPIRACY IN THE TRADE CENTER ATTACK IS IN ITS EIGHTEENTH WEEK IN FEDERAL COURT IN NEW YORK PROSECUTORS ARE EXPECTED TO FINISH PRESENTING EVIDENCE AS EARLY AS NEXT WEEK AND THE JURY IS LIKELY TO BEGIN DELIBERATING AFTER THE DEFENSE CONCLUDES ITS CASE SOMETIME IN FEBRUARY THE NEW YORK LAW FIRM SHEARMAN AND STERLING MOVING AGGRESSIVELY TO OPEN A HONG KONG OFFICE HAS HIRED TWO PARTNERS AND AN ASSOCIATE FROM A COMPETING FIRM THE FIVE HUNDRED FIFTY THREE ATTORNEY FIRM DREW THE NEW LAWYERS FROM THE HONG KONG OFFICE OF LOS ANGELES LAW FIRM GIBSON DUNN AND CRUTCHER MARK KESSEL SHEARMAN'S MANAGING PARTNER SAID THE PARTNERS ALBERT THEODORE POWERS AND CLARK T. RANDT JUNIOR AND SIX OTHERS DESIGNATED FOR THE HONG KONG OFFICE WILL CONCENTRATE ON CORPORATE FINANCE FOREIGN INVESTMENT AND FINANCING THE COUNTRY'S INFRASTRUCTURE RON BEARD GIBSON DUNN'S MANAGING PARTNER SAID ITS OFFICE IN THE COLONY ALREADY HAS THREE NEW ATTORNEYS WE ARE NOT GOING TO CLOSE OUR HONG KONG OFFICE HE SAID AND THE FIRM MAY SOON ADD ONE OR TWO LAWYERS OTHER FIRMS ARE HASTENING TO HONG KONG AS WELL NEW YORK LAW FIRM DEBEVOISE AND PLIMPTON WILL OPEN A SMALL OFFICE THERE THIS SPRING AND ANOTHER LARGE NEW YORK FIRM IS SAID TO HAVE SIMILAR PLANS QUOTE IF YOU LOOK AT WHERE THE CLIENTS ARE AND WHERE THEY'RE PUTTING THEIR RESOURCES IT'S HONG KONG QUOTE MR. KESSEL SAID IT'S GOT THE INFRASTRUCTURE IT'S GOT THE LANGUAGE AND IT'S GOT THE JURIDICAL STRUCTURE THAT REALLY LENDS ITSELF TO THAT KIND OF BUSINESS SAID NED STILES MANAGING PARTNER OF NEW YORK LAW FIRM CLEARY GOTTLIEB STEEN AND HAMILTON HONG KONG IS BECOMING OR HAS BECOME EVERYBODY'S BASE FOR THAT KIND OF WORK TOKYO IS TOO FAR AWAY AND TOO EXPENSIVE AND FOR LAWYERS BASICALLY TOO UNFRIENDLY HIS FIRM HAS TWO PARTNERS AND SEVERAL OTHER ATTORNEYS IN HONG KONG LAW FIRM PARTNERS SAY THEY'RE NOT WORRIED ABOUT WHAT WILL HAPPEN WHEN CHINA ASSUMES SOVEREIGNTY OF HONG KONG IN NINETEEN NINETY SEVEN WE'RE CERTAINLY EXPECTING TO CONTINUE ON THE SAME SCALE WE HAVE NOW SAID ROBERT L. BERNER JUNIOR A PARTNER IN THE CHICAGO FIRM BAKER AND MCKENZIE WHICH HAS MORE THAN ONE HUNDRED ATTORNEYS THERE JUNDA WOO CONTRIBUTED TO THIS ARTICLE LARRY PIERCE FIFTY YEARS OLD WAS NAMED PRESIDENT OF THIS MAKER OF MACHINERY FOR THE CARPET INDUSTRY MR. PIERCE HAD BEEN CHIEF OPERATING OFFICER THE PRESIDENT'S DUTIES HAD BEEN HANDLED BY LANIER M. DAVENPORT CHAIRMAN AND CHIEF EXECUTIVE THE POST WAS MOST RECENTLY FILLED BY JOHN DEERY WHO RETIRED TWO YEARS AGO SEVEN MORE LARGE BANKS REPORTED INCREASED FOURTH QUARTER EARNINGS AS LENDING ROSE AT MANY OF THE COMPANIES OFFSETTING A NARROWING OF NET INTEREST MARGINS LOAN LOSS PROVISIONS FELL SHARPLY AT MANY BANKS BANKAMERICA CORPORATION THE NATION'S SECOND LARGEST BANK HAD A FOUR POINT NINE PERCENT EARNINGS RISE OTHER PROFIT RISES WERE P. N. C. BANK CORPORATION NINETEEN PERCENT NORWEST CORPORATION MORE THAN DOUBLE FLEET FINANCIAL GROUP INCORPORATED SIXTY SIX PERCENT N. B. D. BANCORP SIX POINT THREE PERCENT AND REPUBLIC NEW YORK CORPORATION TWENTY PERCENT SHAWMUT NATIONAL CORPORATION'S PROFIT ROSE THIRTEEN FOLD THE EARNINGS GAINS WERE BASICALLY IN LINE WITH WALL STREET EXPECTATIONS AND THE MARKET AS HAS BEEN TYPICAL RECENTLY FOUND THE NEWS REASON TO TAKE PROFITS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BANKAMERICA COMMON STOCK FELL ONE POINT ONE TWO FIVE DOLLARS OR TWO POINT FOUR PERCENT TO CLOSE AT FORTY SIX DOLLARS AND FIFTY CENTS A SHARE P. N. C. COMMON FELL ONE DOLLAR OR THREE POINT FOUR PERCENT TO TWENTY EIGHT POINT ONE TWO FIVE DOLLARS FLEET PROVIDENCE R. I. FELL SIXTY TWO POINT FIVE CENTS OR ONE POINT EIGHT PERCENT TO THIRTY THREE DOLLARS AND SEVENTY FIVE CENTS N. B. D. FELL TWELVE POINT FIVE CENTS TO TWENTY NINE DOLLARS AND TWENTY FIVE CENTS AND SHAWMUT HARTFORD CONNECTICUT FELL SEVENTY FIVE CENTS OR THREE POINT TWO PERCENT TO TWENTY TWO POINT EIGHT SEVEN FIVE DOLLARS IN SPITE OF THE MARKET'S UNENTHUSIASTIC RESPONSE WALL STREET ANALYSTS FOUND REASONS TO BE HAPPY ABOUT THE REPORTS PARTICULARLY THE CONTINUED IMPROVEMENT IN ASSET QUALITY QUOTE CREDIT QUALITY IS IMPROVING TO AN AMAZING EXTENT QUOTE SAID CHRISTOPH M. KOTOWSKI AN ANALYST WITH OPPENHEIMER AND COMPANY NONPERFORMING ASSETS AT PITTSBURGH BASED P. N. C. FELL BY SIXTY SEVEN MILLION DOLLARS DURING THE QUARTER TO FIVE HUNDRED FIFTY FOUR DOLLARS AT YEAR END NORWEST'S NONPERFORMING ASSETS DECLINED TO TWO HUNDRED THIRTY FIVE MILLION DOLLARS FROM THREE HUNDRED TWENTY FIVE MILLION DOLLARS A YEAR EARLIER DETROIT BASED N. B. D.'S NONPERFORMING PORTFOLIO WAS TWO HUNDRED SIXTY NINE MILLION DOLLARS AT YEAR END COMPARED WITH THREE HUNDRED FIFTY TWO MILLION DOLLARS A YEAR BEFORE THANKS TO CREDIT IMPROVEMENTS SEVERAL BANKS REPORTED SHARPLY LOWER CREDIT LOSS PROVISIONS AT SAN FRANCISCO BASED BANKAMERICA THE PROVISION DROPPED TO ONE HUNDRED FIFTY MILLION DOLLARS FROM ONE HUNDRED SEVENTY EIGHT MILLION DOLLARS IN THE THIRD QUARTER REFLECTING NEW STABILITY IN THE STATE'S LONG DEPRESSED ECONOMY AND PROPERTY MARKETS AT MINNEAPOLIS BASED NORWEST THE PROVISION DECLINED TO FORTY MILLION DOLLARS FROM ONE HUNDRED TWELVE MILLION DOLLARS A YEAR EARLIER MOST OF THE BANKS AS HAVE OTHERS CONTINUED TO REPORT A GRADUAL DECLINE IN NET INTEREST MARGINS OR THE DIFFERENCE BETWEEN A BANK'S COST OF CAPITAL AND THE RATE IT EARNS ON LOANS NORWEST'S MARGIN WAS FIVE POINT FOUR FIVE PERCENT IN THE FOURTH QUARTER DOWN FROM FIVE POINT SEVEN OH PERCENT A YEAR EARLIER BUT FOR MOST BANKS HIGHER LOAN VOLUMES BOOSTED INTEREST INCOME AT P. N. C. FOR EXAMPLE TOTAL LOANS CLIMBED ELEVEN PERCENT FROM A YEAR EARLIER MARGINS ARE COMING DOWN BUT LOAN GROWTH HAS BEEN BETTER THAN I EXPECTED IT WOULD BE MR. KOTOWSKI SAID BANKAMERICA WAS AN EXCEPTION TO THE TREND ALTHOUGH AVERAGE LOANS OUTSTANDING ROSE TO ONE HUNDRED TWENTY FOUR POINT EIGHT BILLION DOLLARS FROM ONE HUNDRED TWENTY ONE POINT EIGHT BILLION DOLLARS NET INTEREST INCOME DECLINED TO ONE POINT EIGHT SIX BILLION DOLLARS DOWN SIXTEEN MILLION DOLLARS FROM THE THIRD QUARTER LARGELY BECAUSE OF THE DETERIORATION IN MARGIN WHICH FELL TO FOUR POINT SIX SIX PERCENT DOWN EIGHT BASIS POINTS FROM THE THIRD QUARTER A BASIS POINT IS ONE ONE HUNDREDTH OF A PERCENTAGE POINT INVESTMENT BANKERS AND INVESTORS EXPECTING TO REAP HUGE PROFITS AS SOUTH AFRICA'S GIANT CONGLOMERATES BREAK UP INTO SMALLER COMPANIES COULD BE IN FOR A DISAPPOINTMENT THAT'S BECAUSE THE BIG PRESSURE TO FORCE SOUTH AFRICA'S LARGEST COMPANIES TO SLIM DOWN WHICH WAS GAINING STRENGTH JUST A FEW MONTHS AGO HAS ABATED PARTLY BECAUSE OF A RIP ROARING STOCK MARKET AMERICAN AND EUROPEAN INVESTMENT BANKERS HAVE BEEN SCRAMBLING TO SET UP SHOP IN SOUTH AFRICA SO THEY COULD AMONG OTHER THINGS MAKE HAY IN A MERGERS AND ACQUISITIONS BOOM BUT THE BOOM THEY WERE EXPECTING WILL LIKELY BE POSTPONED UNTIL THE STOCK MARKET LIFTED PRICES OF SOME SOUTH AFRICAN STOCKS BY AS MUCH AS FIFTY PERCENT SINCE NOVEMBER SOUTH AFRICA'S LARGEST CORPORATIONS HAD BEEN UNDER PRESSURE TO QUOTE UNBUNDLE QUOTE THEIR PYRAMID OF INTERLOCKING CORPORATE HOLDINGS BY SPINNING OFF COMPANIES THAT ARE UNRELATED TO THEIR CORE BUSINESS AND SELLING THEIR LARGE STAKES IN OTHERS MANY POLITICAL LEADERS ESPECIALLY BLACK LEADERS HAVE BEEN STRONG VOCAL ADVOCATES OF UNBUNDLING CONTENDING THAT BREAKING UP SOUTH AFRICA'S CONGLOMERATES WOULD HELP DIVERSIFY THE ECONOMY STIMULATE COMPETITION AND PROMOTE WIDER OWNERSHIP OF SOUTH AFRICAN ASSETS ALTHOUGH THE PRIME MOTIVE FOR UNBUNDLING IS A POLITICAL ONE SOME STOCK ANALYSTS QUICKLY JUMPED ON THE UNBUNDLING BANDWAGON THEY SAY UNBUNDLING WOULD ADD BADLY NEEDED LIQUIDITY TO THE JOHANNESBURG EXCHANGE WHILE BOOSTING STOCK PRICES WHICH FOR MANY COMPANIES WERE TRADING AT HUGE DISCOUNTS TO THEIR NET ASSET VALUES SOUTH AFRICA'S TEN LARGEST CORPORATIONS THE UNBUNDLING ADVOCATES FREQUENTLY NOTED CONTROL EIGHTY PERCENT OF THE NATION'S MAJOR BUSINESS ACTIVITY THROUGH EITHER DIRECT OWNERSHIP OR PYRAMID LIKE CROSS OWNERSHIP STRUCTURES FOR EXAMPLE GOLD MINING CONCERN ANGLO AMERICAN CORPORATION WITH A MARKET CAPITALIZATION OF ABOUT FORTY EIGHT POINT THREE BILLION RAND FOURTEEN POINT SIX BILLION DOLLARS IS NOT ONLY THE BIGGEST COMPANY ON THE JOHANNESBURG STOCK EXCHANGE IT'S ALSO THE CONTROLLING SHAREHOLDER OF DIAMOND CARTEL LEADER DEBEERS CONSOLIDATED MINES LIMITED THE SECOND LARGEST COMPANY ON THE JOHANNESBURG EXCHANGE IN TURN DEBEERS OWNS SHARES IN FOOD CONCERN PREMIER GROUP HOLDINGS LIMITED ANOTHER COMPANY THAT IS CONTROLLED BY ANGLO AMERICAN THESE RELATIONSHIPS ARE SO DISLIKED BY POLITICIANS THAT SOME HAVE THREATENED TO INTRODUCE ANTITRUST LAWS TO FORCE THE COMPANIES TO SEPARATE ALTHOUGH POLITICAL LEADERS AND ECONOMISTS WILL LIKELY CONTINUE TO PUSH FOR UNBUNDLING MANY PEOPLE IN THE INVESTMENT COMMUNITY DOUBT THAT MANY COMPANIES WILL FREELY ADOPT THE STRATEGY AS A RESTRUCTURING METHOD THEY SAY THE SHARP RISE IN STOCK PRICES HAS CAUSED THE DISCOUNT THAT EXISTED ON MANY STOCKS TO DISAPPEAR OR NARROW ON THEIR OWN ELIMINATING ONE ARGUMENT FOR UNBUNDLING I THINK THE WHOLE CONCEPT OF UNBUNDLING HAS GONE BY THE WAYSIDE SAID PETER DAVEY DIRECTOR OF RESEARCH AT FRANKEL POLLACK VINDERINE IN JOHANNESBURG MOST ANALYSTS POINT TO THE UNBUNDLING OF GENCOR LIMITED WHICH HAS BEEN ONLY MODERATELY SUCCESSFUL IN ACHIEVING THE FINANCIAL RESULTS INVESTORS HAD EXPECTED GENCOR IS THE WORLD'S SECOND LARGEST MINING HOUSE AFTER ANGLO AMERICAN WITH A PREUNBUNDLING MARKET CAPITALIZATION OF TWENTY ONE BILLION RAND LAST SUMMER GENCOR CHAIRMAN BRIAN GILBERTSON SAID THE COMPANY WOULD RELINQUISH CONTROL OF ITS NONMINING ASSETS TO GENCOR SHAREHOLDERS IN AN EFFORT TO UNLOCK SHAREHOLDER WEALTH AND IMPROVE OPERATING EFFICIENCY THE TRANSACTIONS WHICH REDUCED GENCOR'S ASSETS BY MORE THAN ONE BILLION RAND INVOLVED THE CONCERN DIVESTING ITSELF OF SAPPI LIMITED A PAPER AND PULP COMPANY ENGEN FORMERLY MOBIL OIL COMPANY'S SOUTH AFRICAN OPERATION BEFORE MOBIL CORPORATION WAS PRESSURED BY THE ANTIAPARTHEID MOVEMENT TO DIVEST ITSELF OF HOLDINGS IN NINETEEN EIGHTY NINE MALBAK A FOOD AND ENGINEERING COMPANY THAT AMONG OTHER THINGS DISTRIBUTES PILLSBURY BRAND FOOD PRODUCTS IN AFRICA AND GENBEL AN INVESTMENT COMPANY PRIOR TO THE UNBUNDLING GENCOR'S STOCK WAS TRADING AT ABOUT FIVE POINT TWO OH RAND A SHARE A DISCOUNT OF ABOUT THIRTY FIVE PERCENT TO ITS NET ASSET VALUE OF EIGHT RAND A SHARE EXCLUDING THE SUBSIDIARIES IT DIVESTED ITSELF OF INCLUDING THOSE SUBSIDIARIES GENCOR'S NET ASSET VALUE WAS THIRTEEN RAND A SHARE ONE MONTH AFTER THE UNBUNDLING GENCOR'S STOCK IS TRADING AT ABOUT EIGHT POINT SIX OH RAND A SHARE A FOURTEEN PERCENT DISCOUNT TO ITS NEW NET ASSET VALUE OF TEN RAND A SHARE WHILE THAT'S A GOOD IMPROVEMENT IT'S NOT AS SIGNIFICANT AS SOME INVESTORS HAD HOPED OWEN RYAN A STOCK ANALYST AT J. D. ANDERSON AND COMPANY HERE SAID THE NARROWING IN GENCOR'S DISCOUNT IS A FUNCTION OF THE MARKET RUNNING HIGHER COMMODITY PRICES MOVING UP FOREIGN INVESTORS COMING IN AND A TURNAROUND IN EUROPE GENCOR'S UNBUNDLING MAY HAVE HAD SOMETHING TO DO WITH THE RISE IN THE STOCK PRICE BUT IT CERTAINLY WAS NOT THE MAJOR FACTOR WHAT ABOUT THE POLITICAL EFFECT OF GENCOR'S UNBUNDLING THE RESULTS HAVE BEEN MIXED THE STOCK OF GENCOR AND ITS FORMER SUBSIDIARIES ARE EASIER TO BUY AND SELL RESULTING IN GREATER TRADING LIQUIDITY FOR INVESTORS AND THE STOCKS ARE SLIGHTLY MORE WIDELY HELD BY THE PUBLIC FOREIGN AND EVEN SOME DOMESTIC INVESTORS ARE FAR MORE INTERESTED IN BUYING ANGLO AMERICAN SHARES THAN THEY ARE IN BUYING GENCOR STOCK ANGLO AMERICAN APPEALS TO A BROAD ARRAY OF INVESTORS WHO LIKE THE FACT THAT ITS INDUSTRY DIVERSITY MAKES IT A GOOD PROXY FOR THE ENTIRE SOUTH AFRICAN ECONOMY INDEED ANGLO AMERICAN STOCK MORE THAN DOUBLED LAST YEAR PARTLY BECAUSE OF A SHARP RISE IN GOLD AND AVID BUYING BY AMERICAN INVESTORS THE SHARP PRICE GAIN CAUSED THE DISCOUNT TO NET ASSET VALUE ONCE AS HIGH AS TWENTY FIVE PERCENT TO DISAPPEAR AS A RESULT IT IS EASIER FOR ANGLO AMERICAN TO DISMISS UNBUNDLING AS A RESTRUCTURING METHOD IT HAS REPEATEDLY ARGUED THAT SOUTH AFRICAN COMPANIES SHOULD NOT BE FORCED TO SLIM DOWN UNTIL THE GOVERNMENT LIFTS MONETARY EXCHANGE CONTROLS WHICH MAKE IT DIFFICULT FOR SOUTH AFRICANS TO INVEST OUTSIDE OF THE COUNTRY AS A RESULT MOST CORPORATIONS HERE HAVE BEEN USING THEIR PROFITS TO BUY OTHER COMPANIES OR TO INVEST IN THE STOCK MARKET RATHER THAN EXPAND INTERNATIONALLY AS MANY WOULD PREFER IT'S NO GOOD RESTRUCTURING IF YOU CAN'T INVEST THE PROCEEDS SAID MICHAEL SPICER AN ANGLO AMERICAN SPOKESMAN QUOTE IF THE GOVERNMENT ELIMINATES EXCHANGE CONTROLS THEN WE MAY CONSIDER QUOTE UNBUNDLING BRITISH AEROSPACE P. L. C. SAID IT WILL CUT FIVE HUNDRED TEN JOBS FROM ITS WEAPONS MAKING UNIT DEFENSE SPENDING CUTBACKS BY THE BRITISH AND THE U. S. GOVERNMENTS MADE THE JOB CUTS NECESSARY THE COMPANY SAID VARIOUS ORDERS HAVE BEEN SHRUNK OR CANCELED RECENTLY QUOTE THE MARKET FOR THE PRODUCTS HAS CONTINUED TO BE CHALLENGING QUOTE A SPOKESWOMAN SAID SHE ADDED THAT THE DECISION TO TRIM STAFF WASN'T BASED ON THE LOSS OF A PARTICULAR CONTRACT BUT RATHER THE DIMINISHED DEMAND FOR THE MISSILES AND OTHER WEAPONS BRITISH AEROSPACE MAKES BRITISH AEROSPACE'S LOSTOCK PLANT IN ENGLAND WILL BEAR THE BRUNT OF THE CUTBACKS AS THREE HUNDRED THIRTY OF THE FIVE HUNDRED TEN JOBS TO BE CUT ARE IN THAT PLANT WAITING AROUND FOR YOUR PRESCRIPTION TO BE FILLED HOW ABOUT A CANDY BAR OR A NEW SHADE OF LIPSTICK DRUGSTORE SHOPPERS SPEND FORTY PERCENT MORE ON CANDY THAN THEY DO ON ANALGESICS ACCORDING TO INFORMATION RESOURCES INCORPORATED'S INFOSCAN SERVICE THEY ALSO SPEND FORTY FIVE PERCENT MORE ON COSMETICS THAN THEY DO ON COLD OR FLU REMEDIES PURCHASES OF SUCH IMPULSE ITEMS ARE HIGH IN DRUGSTORES ACCORDING TO HEMANT K. SHAH A DRUG ANALYST WITH HKS AND COMPANY AND A FORMER PHARMACIST BECAUSE SHOPPERS OFTEN WAIT THIRTY MINUTES FOR THEIR PRESCRIPTION QUOTE CANDY IS AN ALL OCCASION PURCHASE QUOTE MR. SHAH SAYS YOU DON'T NEED TO WAIT UNTIL YOU HAVE A HEADACHE INFORMATION RESOURCES RANKED PRODUCT CATEGORIES IN U. S. DRUGSTORES BY TOTAL DOLLAR SALES DURING THE FIFTY TWO WEEKS ENDED DECEMBER FIFTH COMPARED WITH THE YEAR EARLIER PERIOD TOGETHER THE TOP TEN CATEGORIES ACCOUNT FOR THIRTY SEVEN POINT TWO PERCENT OF OVER THE COUNTER DRUG AND GENERAL MERCHANDISE SALES INFORMATION RESOURCES DOESN'T TRACK PRESCRIPTION DRUG SALES WHICH ACCOUNT FOR FORTY PERCENT TO FIFTY PERCENT OF TOTAL STORE REVENUE ALTHOUGH THE ROSTER OF TOP SELLING OVER THE COUNTER DRUG AND GENERAL MERCHANDISE CATEGORIES CHANGES LITTLE FROM YEAR TO YEAR A FEW SHIFTS ARE NOTABLE SALES OF VITAMINS SOARED TEN POINT SIX PERCENT COMPARED WITH THE PREVIOUS YEAR AFTER SEVERAL MEDICAL STUDIES LINKED CERTAIN VITAMINS TO LOWER INCIDENCE OF CANCER AND OTHER DISEASES SALES OF HOME DIAGNOSTIC KITS AND OTHER FIRST AID PRODUCTS JUMPED ELEVEN POINT ONE PERCENT THANKS TO IMPROVING TECHNOLOGY AND AMERICANS' GROWING DESIRE TO GAIN MORE CONTROL OF THEIR OWN HEALTH CARE SOME OF THE DECLINES REFLECT A SHIFT IN SHOPPING HABITS BARGAIN HUNTING CONSUMERS ARE BUYING MORE COSMETICS AT DEEP DISCOUNT DRUGSTORES AND MASS MERCHANDISERS HURTING DRUGSTORE SALES OF CONTACT LENS SOLUTIONS THE GROWING POPULARITY OF DISPOSABLE LENSES AND FIERCE PRICE COMPETITION FROM PRIVATE LABEL RIVALS PFIZER REPORTED SURPRISINGLY WEAK EARNINGS AND SALES GROWTH FOR THE FOURTH QUARTER AN INDICATION THAT EVEN THE STRONGEST OF DRUG COMPANIES IS BEING OVERPOWERED BY UPHEAVAL IN THE HEALTH CARE INDUSTRY PROFIT GREW THREE POINT SIX PERCENT AND SALES JUST TWO POINT TWO PERCENT THE RESULTS SENT PFIZER'S SHARES DOWN FIVE DOLLARS OR SEVEN POINT FOUR PERCENT TO SIXTY TWO POINT EIGHT SEVEN FIVE DOLLARS AND SHOOK THE STOCKS OF THE ENTIRE PHARMACEUTICAL SECTOR SONY AND TIME WARNER'S RECORDING UNITS ARE LEADING TALKS AMONG THE INDUSTRY'S LARGEST PLAYERS ABOUT FORMING A WORLD WIDE T. V. MUSIC VIDEO SERVICE DIGITAL EQUIPMENT POSTED A SURPRISE LOSS FOR ITS SECOND QUARTER ON A TWELVE PERCENT REVENUE DECLINE RAISING THE PROSPECT OF MORE COST CUTTING AND LAYOFFS THE FRAUD AT RETAILER PHAR MOR WAS MORE ELABORATE THAN FIRST THOUGHT AND LOSSES FROM THE SCHEME TOTALED ONE BILLION DOLLARS DOUBLE PREVIOUS ESTIMATES A COURT APPOINTED EXAMINER REPORTED THE FEDERAL RESERVE'S REGIONAL ECONOMIC SURVEY WAS MOSTLY OPTIMISTIC CITING STRONGER MANUFACTURING HOME CONSTRUCTION AND CONSUMER SPENDING ON BIG TICKET PURCHASES THE MERCHANDISE TRADE DEFICIT NARROWED IN NOVEMBER TO TEN POINT ONE SEVEN BILLION DOLLARS FROM OCTOBER'S RECORD TEN POINT NINE OH BILLION DOLLARS AS IMPORTS AND EXPORTS DECLINED THE DOW INDUSTRIALS ROSE FOURTEEN POINT OH EIGHT TO THREE THOUSAND EIGHT HUNDRED EIGHTY FOUR POINT THREE SEVEN YET ANOTHER HIGH DESPITE A FLURRY OF DOWNBEAT PROFIT REPORTS THAT KEPT STOCKS LOWER MOST OF THE DAY A. M. R. SAID ITS FOURTH QUARTER LOSS WIDENED MOSTLY BECAUSE THE FIVE DAY STRIKE BY FLIGHT ATTENDANTS AT ITS AMERICAN AIRLINES UNIT WAS MORE COSTLY THAN IT HAD INITIALLY FORECAST PENNZOIL SAID THE I. R. S. PLANS TO SEEK NINE HUNDRED FIFTY SIX POINT FIVE MILLION DOLLARS IN TAXES AND INTEREST ON THE THREE BILLION DOLLAR SETTLEMENT THE COMPANY RECEIVED FROM TEXACO IN NINETEEN EIGHTY EIGHT LAZARD FRERES AND MERRILL LYNCH HAVE MADE SIGNIFICANT CHANGES IN THE MANAGEMENT OF THEIR MUNICIPAL BOND OPERATIONS IN THE WAKE OF A SERIES OF FEDERAL STATE AND LOCAL INQUIRIES ELEVEN OIL COMPANIES WERE PLACED UNDER REVIEW BY S. AND P. FOR POSSIBLE RATINGS DOWNGRADES THE SLIDE IN CRUDE OIL PRICES TO FIVE YEAR LOWS HAS CAUSED INDUSTRY EARNINGS TO PLUNGE COLUMBIA GAS'S MAIN PIPELINE UNIT FILED A REORGANIZATION PLAN PROPOSING TO PAY NINE HUNDRED MILLION DOLLARS TO SETTLE CLAIMS BY NATURAL GAS SUPPLIERS WHICH HAVE VALUED THE CLAIMS AT UP TO THIRTEEN BILLION DOLLARS UNITED TECHNOLOGIES PLANS TO ISSUE TWO SEPARATE CLASSES OF STOCK IN ITS AUTOMOTIVE UNIT HELPING IT TO RAISE GROSS PROCEEDS OF AS MUCH AS EIGHT HUNDRED THIRTY MILLION DOLLARS BANKAMERICA P. N. C. BANK NORWEST AND SEVERAL OTHER BIG BANKS POSTED FOURTH QUARTER EARNINGS INCREASES MICROSOFT POSTED SHARPLY HIGHER PROFIT FOR ITS SECOND QUARTER SEPARATELY IT SAID THE U. S. PATENT OFFICE HAS OPENED THE WAY FOR THE COMPANY TO GAIN A TRADEMARK ON THE WORD QUOTE WINDOWS QUOTE WHEN USED TO DESCRIBE PERSONALCOMPUTER SOFTWARE PRODUCTS JAPANESE STOCKS RALLIED TWO POINT EIGHT PERCENT AFTER OPTIMISM ABOUT IMMINENT APPROVAL OF POLITICAL REFORM PULLED GIANT INSTITUTIONAL INVESTORS INTO THE MARKET BUT AFTER TRADING ENDED WEDNESDAY TALKS BETWEEN JAPAN'S RULING COALITION AND THE OPPOSITION FELL APART BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED EIGHTY SEVEN POINT ONE FIVE OFF EIGHT POINT THREE NINE COMMODITIES OIL FIFTEEN DOLLARS AND TWENTY TWO CENTS A BARREL UP THIRTY FIVE CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY TWO POINT OH EIGHT OFF ZERO POINT ONE ZERO SPOT INDEX ONE HUNDRED TWENTY NINE POINT SIX OH OFF ZERO POINT SIX SIX DOLLAR ONE HUNDRED ELEVEN POINT THREE FIVE YEN UP ZERO POINT SIX ZERO ONE POINT SEVEN FOUR SIX OH MARKS OFF ZERO POINT ZERO ZERO ZERO FIVE GREAT BAY BANKSHARES INCORPORATED BOUGHT BACK FIVE THOUSAND COMMON SHARES UNDER THE STOCK BUYBACK PROGRAM AUTHORIZED BY ITS BOARD IN OCTOBER IN A NEWS RELEASE THE COMPANY SAID A TOTAL OF SEVENTY FIVE THOUSAND SHARES HAS BEEN BOUGHT UNDER THE CURRENT PROGRAM AT A WEIGHTED AVERAGE PRICE OF TWELVE DOLLARS AND ELEVEN CENTS A SHARE A SPOKESMAN SAID THE COMPANY MAY BUY BACK AN ADDITIONAL ONE HUNDRED NINETY SIX THOUSAND TWO HUNDRED FIFTY FIVE COMMON SHARES ACCORDING TO THE STOCK BUYBACK PROGRAM GREAT BAY'S STOCK CLOSED YESTERDAY AT TWELVE POINT SIX TWO FIVE DOLLARS A SHARE UP THIRTY SEVEN POINT FIVE CENTS ON THE NASDAQ STOCK MARKET COMPUTER CONCERN THREE COM CORPORATION SAID IT AGREED TO ACQUIRE CENTRUM COMMUNICATIONS INCORPORATED FOR THIRTY SIX MILLION DOLLARS CENTRUM BASED IN SAN JOSE CALIFORNIA MAKES REMOTE ACCESS SERVERS THAT ENABLE USERS TO TAP INTO THEIR OFFICE COMPUTERS FROM OTHER LOCATIONS THROUGH PERSONAL COMPUTERS CENTRUM'S PRODUCTS COMPRISE HARDWARE INSTALLED IN THE OFFICE AND SOFTWARE INSTALLED IN THE USER'S P. C. AND THREE COM MAKES DEVICES FOR COMPUTER DATA NETWORKS CHICAGO MERCANTILE EXCHANGE'S CHAIRMAN JOHN F. SANDNER WAS ELECTED TO A NEW TWO YEAR TERM MR. SANDNER WHO RAN UNOPPOSED FOR THE ELECTED POST OF CHAIRMAN HAS NOW SERVED LONGER THAN ANY OTHER CHAIRMAN OF THE C. M. E. QUOTE I INTEND TO DO EVERYTHING POSSIBLE TO CREATE NEW GROWTH AND PROFIT OPPORTUNITIES FOR THE MEMBERS OF THE C. M. E. QUOTE MR. SANDNER SAID MR. SANDNER ALSO IS CHAIRMAN OF GLOBEX CORPORATION WHICH RUNS A TWENTY FOUR HOUR FUTURES TRADING NETWORK IN A PARTNERSHIP WITH REUTERS HOLDINGS P. L. C. AND THE CHICAGO BOARD OF TRADE THE ONCE VOCAL OPPOSITION TO A PROPOSED ENERGY PARTNERSHIP SETTLEMENT BY PRUDENTIAL SECURITIES INCORPORATED HAS PETERED OUT AT A FAIRNESS HEARING IN A NEW ORLEANS FEDERAL COURT YESTERDAY EVEN PLAINTIFFS' LAWYERS WHO HAD STAUNCHLY OPPOSED AN EARLIER PROPOSED SETTLEMENT IN THE CLASSACTION CASE RALLIED BEHIND PRUDENTIAL'S LATEST SETTLEMENT OFFER OF ONE HUNDRED TWENTY MILLION DOLLARS IN CASH PRUDENTIAL'S ORIGINAL SETTLEMENT PLAN FOR THIRTY SEVEN MILLION DOLLARS IN CASH AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM WAS WITHDRAWN QUOTE WE CONCUR WITH PRUDENTIAL ATTORNEYS NOW THAT THIS IS A FAIR ADEQUATE AND REASONABLE SETTLEMENT QUOTE GEORGE RIESS A PLAINTIFFS' LAWYER TOLD FEDERAL JUDGE MARCEL LIVAUDAIS JUNIOR MR. RIESS WHO REPRESENTS ABOUT ONE HUNDRED FIFTY INVESTORS HAD BEEN A LEADING OBJECTOR TO THE PREVIOUS SETTLEMENT OFFER BY PRUDENTIAL IN THE CASE ABOUT ONE HUNDRED THIRTY THOUSAND INVESTORS HAVE ACCUSED THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT OF MISLEADING THEM ON THE RISKS AND RETURNS OF ABOUT ONE POINT FOUR FIVE BILLION DOLLARS IN THIRTY FIVE ENERGY PARTNERSHIPS WHICH HAVE LOST ABOUT HALF THEIR VALUE THANKS TO THE INCREASING SUPPORT OF THE ACCORD IT'S WIDELY EXPECTED THAT JUDGE LIVAUDAIS WILL APPROVE THE SETTLEMENT AFTER THE THREE DAY FAIRNESS HEARING WHICH ENDS TOMORROW EVEN LAWYERS WITH MANY CLIENTS WHO HAVE CHOSEN TO OPT OUT OF THE SETTLEMENT AREN'T OPENLY OPPOSING THE PRUDENTIAL ACCORD SOME OF THE PEOPLE WE COUNSELED JUST FLAT WANT IT OVER THEY'RE WILLING TO TAKE WHAT WE VIEW AS A CUT TO CONCLUDE IT SAYS GEORGE FLEMING OF FLEMING HOVENKAMP AND GRAYSON TWO THOUSAND OF THE HOUSTON LAW FIRM'S SEVEN THOUSAND CLIENTS IN THE CASE HAVE DECIDED TO REMAIN PART OF THE CLASS NEARLY SIXTEEN THOUSAND OF THE ONE HUNDRED THIRTY THOUSAND ENERGY PARTNERSHIP INVESTORS HAVE DECIDED TO OPT OUT OF THE SETTLEMENT ACCORDING TO EDWARD GROSSMAN A LAWYER IN NEW YORK FOR THE CLASS THOSE WHO OPT OUT CAN FILE A PRIVATE ARBITRATION OR COURT CASE OR FILE A CLAIM TO TAP INTO A THREE HUNDRED THIRTY MILLION DOLLAR REPARATIONS FUND SET UP BY PRUDENTIAL AS PART OF AN OCTOBER SETTLEMENT WITH FEDERAL AND STATE REGULATORS ONE PROMINENT OBJECTOR TO THE ACCORD REMAINS STEADFAST STUART GOLDBERG A LAWYER IN AUSTIN TEXAS SAID INVESTORS OUGHT TO RECEIVE SEVEN HUNDRED EIGHTY MILLION DOLLARS THE CENTRAL ISSUE IS THAT THE PROSPECTUSES FAILED TO DISCLOSE THAT THIS IS A COMMODITY FUND NOT AN INCOME FUND SAID MR. GOLDBERG WHO REPRESENTS MORE THAN ONE HUNDRED INVESTORS MR. GOLDBERG DID A VERY CAPABLE JOB BUT HE DIDN'T GIVE A REASON WHY THIS SETTLEMENT SHOULD BE KNOCKED OUT SAID CLINTON KRISLOV A LAWYER IN CHICAGO WHO HAD OPPOSED THE EARLIER PRUDENTIAL SETTLEMENT OFFER BUT ENDORSES THE CURRENT ONE INTERNATIONAL COLIN ENERGY CORPORATION SAID A RECENT GAS DISCOVERY IN NORTHEASTERN BRITISH COLUMBIA TESTED AT SIXTEEN MILLION CUBIC FEET A DAY THE OIL AND GAS PRODUCER SAID THE DISCOVERY WELL IN WHICH IT HOLDS A SEVENTY THREE PERCENT INTEREST COST ONE POINT SIX MILLION CANADIAN DOLLARS ONE POINT TWO MILLION U. S. DOLLARS TO DRILL THE COMPANY SAID IT HAS APPLIED FOR A PIPELINE PERMIT AND HOPES TO BEGIN CONSTRUCTION WITHIN TWO WEEKS AND THAT IT PLANS TO CONNECT THE WELL TO BRITISH COLUMBIA'S GAS TRANSPORTATION NETWORK BY THE END OF MARCH INTERNATIONAL COLIN SAID IT PLANS TO DRILL AS MANY AS THREE MORE WELLS IN THE ADSETT AREA OF BRITISH COLUMBIA NEAR THE NEW DISCOVERY WELL AND THAT IT PLANS TO BUY MORE LAND THERE THE U. S. AND CHINA APPEAR CLOSE TO RESOLVING A HUMAN RIGHTS DISPUTE WITH AN AGREEMENT THAT WILL MAKE IT EASIER FOR AMERICAN INSPECTORS TO VISIT SUSPECTED PRISON LABOR SITES IN CHINA THE AGREEMENT DETAILS OF WHICH ARE STILL BEING NEGOTIATED WOULD MEET ONE OF THE U. S. CONDITIONS THAT CHINA MUST SATISFY TO WIN A CONTINUATION OF ITS MOST FAVORED NATION TRADE STATUS TREASURY SECRETARY LLOYD BENTSEN HOPES TO BE ABLE TO ANNOUNCE A SATISFACTORY CONCLUSION OF THE TALKS BEFORE HE LEAVES HERE TOMORROW QUOTE I'M MAKING IT CLEAR THAT PROGRESS ON HUMAN RIGHTS IS BASIC TO OUR RELATIONSHIP QUOTE MR. BENTSEN SAID AFTER A MEETING WITH CHINESE PREMIER LI PENG YESTERDAY MR. BENTSEN THE HIGHEST RANKING CLINTON ADMINISTRATION OFFICIAL TO VISIT CHINA IS HERE TO IMPROVE TRADE AND ECONOMIC RELATIONS WITH THE RAPIDLY DEVELOPING COUNTRY THE EXPECTED ACCORD DEMONSTRATES THAT BOTH WASHINGTON AND BEIJING ARE DETERMINED TO EXPAND THEIR BENEFICIAL AND PROFITABLE DEALINGS MR. BENTSEN ANNOUNCED THAT THE U. S. WILL REVIVE THE JOINT ECONOMIC COMMITTEE A FORUM THAT WASHINGTON STOPPED AFTER THE CHINESE MILITARY SUPPRESSED A PRO DEMOCRACY DEMONSTRATION IN TIANANMEN SQUARE IN NINETEEN EIGHTY NINE THROUGH THE COMMITTEE THE U. S. WILL PROVIDE CHINA WITH TECHNICAL ASSISTANCE IN FISCAL MONETARY AND OTHER ISSUES WHILE CONTINUING DISCUSSIONS ON INVESTMENT TRADE AND INCREASED U. S. ACCESS TO CHINESE MARKETS IN PARTICULAR THE U. S. WANTS TO WIN GREATER OPPORTUNITIES FOR U. S. BANKS AND BROKERS IN CHINA LAST YEAR PRESIDENT CLINTON ISSUED AN EXECUTIVE ORDER MAKING THE CONTINUATION OF CHINA'S MOST FAVORED NATION STATUS WHICH GIVES IT THE SAME TRADE TERMS THAT MOST OTHER NATIONS HAVE WITH THE U. S. CONTINGENT ON IMPROVEMENT IN ITS HUMAN RIGHTS RECORD THE TWO FIRM CONDITIONS FOR EXTENDING M. F. N. BEYOND JULY THIRD INVOLVE FREE EMIGRATION AND U. S. INSPECTIONS OF SUSPECTED PRISON LABOR CAMPS IN ADDITION CHINA MUST SHOW SIGNIFICANT PROGRESS ON SUCH ISSUES AS THE HUMANE TREATMENT OF PRISONERS RELEASING CERTAIN POLITICAL AND RELIGIOUS PRISONERS AND PROTECTING TIBET'S RELIGIOUS HERITAGE IN SEPTEMBER CUSTOMS COMMISSIONER GEORGE WEISE TOLD CONGRESS THAT CHINA HAS GRANTED ONLY ONE IN FIVE U. S. REQUESTS TO INSPECT SUSPECTED PRISON LABOR FACILITIES THE EXPECTED AGREEMENT WOULD ALLOW INCREASED ACCESS BY U. S. CUSTOMS OFFICIALS THE U. S. DOESN'T ALLOW THE IMPORT OF PRODUCTS MADE WITH PRISON LABOR RELATIONS BETWEEN THE CLINTON ADMINISTRATION AND CHINA GOT OFF TO A FROSTY START BECAUSE OF MR. CLINTON'S FOCUS ON HUMAN RIGHTS DURING HIS PRESIDENTIAL CAMPAIGN IN THE LAST YEAR OR SO HOWEVER THE ADMINISTRATION HAS MADE A CONCERTED EFFORT TO ENGAGE CHINA ON A RANGE OF ISSUES OPERATING ON THE THEORY THAT IT'S EASIER TO INFLUENCE A FRIEND THAN AN ADVERSARY FRANKLIN RESOURCES INCORPORATED SAID IT EXPECTS TO REPORT EARNINGS OF BETWEEN FIFTY SIX MILLION DOLLARS AND FIFTY SEVEN POINT FIVE MILLION DOLLARS FOR THE QUARTER ENDED DECEMBER THIRTY FIRST OUTSTRIPPING WALL STREET'S CONSENSUS ESTIMATE THE MONEY MANAGEMENT FIRM IN SAN MATEO CALIFORNIA RELEASED THE FISCAL FIRST QUARTER EARNINGS RANGE WHICH IS EQUAL TO BETWEEN SIXTY EIGHT CENTS A SHARE AND SEVENTY CENTS A SHARE AT ITS ANNUAL SHAREHOLDERS' MEETING YESTERDAY IN THE YEAR AGO PERIOD IT EARNED THIRTY FOUR POINT EIGHT MILLION DOLLARS OR FORTY THREE CENTS A SHARE ON REVENUE OF ONE HUNDRED THIRTY SIX POINT SEVEN MILLION DOLLARS ANALYSTS HAD EXPECTED THE COMPANY TO EARN SIXTY ONE CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INCORPORATED IN NEW YORK STOCK EXCHANGE LATE TRADING THE COMPANY'S STOCK CLOSED AT FORTY TWO POINT EIGHT SEVEN FIVE DOLLARS A SHARE UP TWO POINT SIX TWO FIVE DOLLARS OR SIX POINT FIVE PERCENT AT AN OFT DELAYED WHITE HOUSE MEETING RIGHT BEFORE CHRISTMAS THE HOUSE DEMOCRATIC LEADERS WERE DIRECT WITH PRESIDENT CLINTON WORKING CONTROL OF CONGRESS MAY WELL DISAPPEAR WITH THIS YEAR'S ELECTIONS THEY CITED MORE THAN A HALF DOZEN MAJOR VOTES DURING NINETEEN NINETY THREE INCLUDING CRITICAL BUDGET AND SPENDING TALLIES AS WELL AS OTHER KEY MEASURES SUCH AS OVERHAULING THE CAMPAIGN FINANCE LAWS A SWITCH OF LESS THAN TEN VOTES WOULD HAVE CHANGED THE OUTCOME IN EACH THEY THEN TOSSED IN A FEW MORE BILLS AND A SWITCH OF EIGHTEEN VOTES WOULD HAVE WIPED OUT MOST OF THE PRESIDENT'S LEGISLATIVE ACHIEVEMENTS BILL CLINTON WHO TOOK COPIOUS NOTES WAS IMPRESSED AT THE END HE AGREED TO RAISE TWO MILLION DOLLARS FOR HOUSE DEMOCRATIC CANDIDATES THIS YEAR THIS IS ALMOST FOUR TIMES AS MUCH AS THE CLINTON GORE TEAM RAISED FOR THESE CANDIDATES IN NINETEEN NINETY TWO IN NINETEEN NINETY FOUR THE STAKES IN THE HOUSE ELECTIONS ARE HUGE AN EVEN AVERAGE SHOWING BY REPUBLICANS COULD REVIVE THE DOMINANCE OF THE OLD G. O. P. CONSERVATIVE DEMOCRATIC COALITION MORE IMPORTANT IF THE REPUBLICANS ADD TWO DOZEN SEATS IT WILL MAKE ACTUAL G. O. P. CONTROL OF THE HOUSE A DISTINCT POSSIBILITY EITHER TWO OR FOUR YEARS LATER MANY OF THE THIRTY FOUR SENATE RACES AND THIRTY SIX GUBERNATORIAL ELECTIONS AS USUAL WILL CAPTURE MOST OF THE POLITICAL ATTENTION BUT THE CLASH FOR THE HOUSE IS THE MOST CRITICAL BATTLEFIELD IN NINETEEN NINETY FOUR THE DIFFERENCE BETWEEN A MEDIOCRE AND A SPECTACULAR SHOWING MAY REST IN PART ON HOW THE CURRENT HOUSE REPUBLICANS PRESENT THEMSELVES IN THIS SURE TO BE TURBULENT POLITICAL YEAR ACCORDINGLY THE MOST PIVOTAL REPUBLICAN IN THE LAND TODAY IS NOT BOB DOLE OR ANY G. O. P. PRESIDENTIAL HOPEFUL IT IS THE HOUSE WHIP AND NEXT HOUSE G. O. P. LEADER NEWT GINGRICH QUOTE NEWT IS THE MOST IMPORTANT REPUBLICAN IN THE COUNTRY FOR THE NEXT EIGHTEEN MONTHS QUOTE SAYS FORMER HOUSE REPUBLICAN VIN WEBER WE'LL PICK UP SOMEWHERE BETWEEN TEN AND FIFTY SEATS REPRESENTATIVE GINGRICH PREDICTS THAT WILL DEPEND HE BELIEVES ON HOW BILL CLINTON DOES THIS YEAR AND WHETHER THE ECONOMY STAYS IN GOOD SHAPE FACTORS BEYOND HIS CONTROL AND HOW THE CONGRESSIONAL REPUBLICANS PERFORM WHICH DECIDEDLY IS IN HIS CONTROL THE GEORGIA REPUBLICAN MAKES NO SECRET THAT HE'LL BE A NO HOLDS BARRED FOE TOMORROW HE PLANS TO CHALLENGE THE PRESIDENT TO CONVENE A SPECIAL SIXTY DAY CONGRESSIONAL SESSION TO DEAL SERIOUSLY WITH CRIME BEFORE EVEN CONSIDERING HEALTH CARE AND OTHER LEGISLATION MR. GINGRICH AND HIS COLLEAGUES HAVE A WAY TO GO WITH THE PUBLIC VOTERS IN THIS WEEK'S WALL STREET JOURNAL SLASH N. B. C. NEWS POLL BY THIRTY FOUR PERCENT TO TWENTY NINE PERCENT SAY THEY'RE MORE LIKELY TO VOTE FOR DEMOCRATIC CONGRESSIONAL CANDIDATES BUT THE POLL ALSO SHOWS OPPORTUNITIES BY FIFTY SIX PERCENT TO THIRTY THREE PERCENT THE PUBLIC NOW THINKS IT'S BETTER IF CONGRESS AND THE PRESIDENCY ARE CONTROLLED BY DIFFERENT PARTIES TRADITIONALLY THE PARTY CONTROLLING THE WHITE HOUSE SUFFERS SETBACKS IN MIDTERM ELECTIONS DATING BACK TO HARRY TRUMAN IN THE FIRST OFF YEAR ELECTIONS OF A PRESIDENT'S TERM THE OPPOSITION PARTY HAS GAINED AN AVERAGE OF MORE THAN TWO DOZEN SEATS THE DEMOCRATS CURRENTLY ENJOY A TWO HUNDRED FIFTY NINE TO ONE HUNDRED SEVENTY SIX MARGIN SO IF THE G. O. P. GAINS TWO DOZEN SEATS THAT WOULD BRING THEM TO TWO HUNDRED OR MORE SEATS THAN ANYTIME SINCE NINETEEN FIFTY SIX THE REPUBLICANS SEEMINGLY HAVE TWO OTHER ADVANTAGES THE HUGE ONE HUNDRED FOURTEEN MEMBER FRESHMAN CLASS ABOUT SIXTY PERCENT DEMOCRATIC HAS HAD LESS TIME TO SOLIDIFY THE ADVANTAGES OF INCUMBENCY THIRTY ONE OF THOSE DEMOCRATIC NEWCOMERS WON BY FIFTY FIVE PERCENT OR LESS IN NINETEEN NINETY TWO INDICATING THOSE DISTRICTS ARE VERY COMPETITIVE MOREOVER ALREADY THIRTY ONE HOUSE MEMBERS HAVE RETIRED THIS YEAR AND THERE MAY BE A DOZEN OR TWO MORE ALSO GIVING THE G. O. P. DISPROPORTIONATE OPPORTUNITIES IN THESE OPEN SEATS REPRESENTATIVE GINGRICH AND OTHER REPUBLICANS ALSO BELIEVE SOME KEY ISSUES WILL CUT THEIR WAY SOME LEADING PARTY STRATEGISTS THINK THAT WHILE HEALTH CARE MAY END UP A POLITICAL PLUS FOR THE PRESIDENT IT'S MORE LIKELY TO HELP REPUBLICAN CONGRESSIONAL CANDIDATES THIS YEAR AS VOTERS ANGRY ABOUT ANY CHANGES WILL TURN OUT BUT ANY BENEFITS WON'T BE APPARENT UNTIL LATER BUT MAJOR REPUBLICAN STRIDES WON'T BE EASY G. O. P. POLLSTER ROBERT TEETER REMEMBERS HOW TOUGH IT WAS TO DEFEAT FRESHMAN DEMOCRATS FROM THE HUGE WATERGATE CLASS OF NINETEEN SEVENTY FOUR SOMETIMES FIRST TERMERS ARE ACTUALLY SAFER BECAUSE THEY WORK HARDER AND DREAMS THAT THE DIVISIVE FIGHT OVER THE NORTH AMERICAN FREE TRADE AGREEMENT WOULD CAUSE SIZABLE PROBLEMS WITH UNIONS ARE FADING LABOR HAS TOLD DEMOCRATIC POLITICIANS PRIVATELY THAT WHILE IT WILL PROBABLY OPPOSE A COUPLE OF PRO NAFTA DEMOCRATS IT WANTS TO NORMALIZE ITS CLOSE TIES TO MOST OF THE PARTY FURTHER THE SINGLE MOST IMPORTANT ISSUE IN MOST NONPRESIDENTIAL ELECTIONS IS NOT SURPRISINGLY THE ECONOMY AND TODAY THAT LOOKS LIKE A WINNER FOR THE DEMOCRATS THIS IS ONE OF THE FEW TIMES THAT AN OFF YEAR ELECTION WILL BE HELD IN A RECOVERING ECONOMY NOTES DEMOCRATIC POLLSTER PETER HART THE POLITICALLY ASTUTE NEWT GINGRICH REALIZES THIS AND KNOWS HE MUST POSITION REPUBLICANS ARTFULLY THIS YEAR IF IT'S REPUBLICANS OPPOSING WE WILL ONLY GAIN THE MINIMUM SEATS HE ACKNOWLEDGES IF IT'S REPUBLICAN ALTERNATIVES WE'LL DOUBLE OR TRIPLE THAT HE THEREFORE HAS LITTLE USE FOR ASSERTIONS BY SOME PROMINENT REPUBLICANS THAT THE G. O. P. LINE ON HEALTH CARE SHOULD BE THAT THERE IS NO CRISIS QUOTE I WISH PEOPLE WHO SAY THAT WOULD GO TALK AT RANDOM TO ANY TEN SMALL BUSINESS PEOPLE IN AMERICA QUOTE THAT DOESN'T MEAN HOWEVER THAT MR. GINGRICH WILL HELP THE PRESIDENT GET A HEALTH CARE OVERHAUL PASSED THE ONLY QUESTION IS HOW BEST TO FRAME ALTERNATIVES THAT WILL KILL OR EVEN BETTER EMBARRASS THE CLINTON INITIATIVE ALMOST EVERYONE WHO SPENDS ANY TIME WITH MR. GINGRICH APPRECIATES HIS BRILLIANT MIND AND POLITICAL DEXTERITY EVEN SOME FRIENDS HOWEVER WORRY ABOUT PERSONAL FLAWS CHARACTER ASSASSINATION LINKING DEMOCRATS TO WOODY ALLEN IN NINETEEN NINETY TWO FOR INSTANCE HAS BEEN A TOO FREQUENT GINGRICH TACTIC AND HIS PLANS TO TARGET HOUSE SPEAKER TOM FOLEY'S OPPOSITION TO TERM LIMITS ARE DISINGENUOUS THE EIGHT TERM GEORGIA REPUBLICAN HAS NO INTEREST IN TERM LIMITS FOR HIMSELF IT'S REALLY A REACH WHEN HE SUGGESTS THAT THE CLINTONS' ETHICS ARE NIXONISH BUT THE GEORGIA REPUBLICAN CAN TASTE THE PROSPECTS OF EXERCISING REAL POWER IN THE HOUSE AND HE DOESN'T PLAN TO BLOW IT AND HE HAS A CATCHY CAMPAIGN THEME THAT SHOULD GIVE THE DEMOCRATS FITS DO YOU THINK FORTY YEARS IS LONG ENOUGH MCDONNELL DOUGLAS CORPORATION REPORTED A FOURTH QUARTER NET LOSS AFTER A FOUR HUNDRED FIFTY MILLION DOLLAR PRETAX CHARGE RELATING TO ITS C. SEVENTEEN MILITARY TRANSPORT JET BUT THE COMPANY SAID OPERATING RESULTS IMPROVED THE LOSS REFLECTING A CHARGE THAT HAD BEEN EXPECTED UNDER TERMS OF A RECENT PENTAGON SETTLEMENT ALLOWING PRODUCTION OF THE PLANE TO PROCEED AMOUNTED TO ONE HUNDRED THIRTY TWO MILLION DOLLARS OR THREE DOLLARS AND SIXTY SIX CENTS A SHARE A YEAR EARLIER PROFIT TOTALED SEVEN HUNDRED SIXTY TWO MILLION DOLLARS OR NINETEEN DOLLARS AND FORTY SIX CENTS A SHARE AFTER A RETIREE HEALTH CARE RELATED GAIN EXCLUDING THE C. SEVENTEEN CHARGE AND THE YEAR EARLIER GAIN ONCE TROUBLED MCDONNELL DOUGLAS'S FOURTH QUARTER EARNINGS WOULD HAVE TOTALED ONE HUNDRED FORTY THREE MILLION DOLLARS OR THREE DOLLARS AND SIXTY THREE CENTS A SHARE COMPARED WITH EIGHTY SIX MILLION DOLLARS OR TWO DOLLARS AND TWENTY CENTS PER SHARE A YEAR EARLIER HOWEVER THE SAINT LOUIS COMPANY'S COMMERCIAL AIRPLANE BUSINESS IS STILL MIRED IN THE INDUSTRY'S CURRENT DOWNTURN REVENUE IN THE QUARTER PLUNGED TWENTY ONE PERCENT TO THREE POINT SIX THREE BILLION DOLLARS FROM FOUR POINT SIX TWO BILLION DOLLARS FOR ALL OF NINETEEN NINETY THREE MCDONNELL DOUGLAS HAD NET INCOME OF THREE HUNDRED NINETY SIX MILLION DOLLARS OR TEN DOLLARS AND TEN CENTS A SHARE VERSUS A YEAR EARLIER LOSS OF SEVEN HUNDRED EIGHTY ONE MILLION DOLLARS OR TWENTY DOLLARS AND TEN CENTS A SHARE ANNUAL REVENUE FELL SEVENTEEN PERCENT TO FOURTEEN POINT FOUR NINE BILLION DOLLARS FROM SEVENTEEN POINT THREE SEVEN BILLION DOLLARS THE COMPANY'S STOCK FELL ONE POINT ONE TWO FIVE DOLLARS OR ONE PERCENT TO CLOSE AT ONE HUNDRED TWELVE POINT THREE SEVEN FIVE DOLLARS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE HERBERT LANESE THE COMPANY'S CHIEF FINANCIAL OFFICER TOLD REPORTERS AFTER THE RESULTS WERE ANNOUNCED THAT ACCOMPLISHMENTS OF THE LAST YEAR QUOTE RE ESTABLISHED OURSELVES AND GIVE US TIME TO GROW QUOTE WITH THE COMPANY STABILIZED MR. LANESE SAID DIRECTORS WILL CONTEMPLATE RAISING THE THIRTY FIVE CENT QUARTERLY DIVIDEND AT A MEETING LATER THIS MONTH HE ALSO SAID THE COMPANY WILL LOOK SERIOUSLY AT A STOCK BUYBACK ALTHOUGH IT MAY PROVE MORE WORTHWHILE TO SHAREHOLDERS FOR THE COMPANY TO REINVEST IN BUSINESSES THAT OFFER STRONG PROSPECTS FOR TRADE SUCH AS FIGHTER JETS AND THE C. SEVENTEEN MILITARY TRANSPORT MCDONNELL DOUGLAS HAD SAID IN LATE OCTOBER THAT IT MIGHT INCUR THE C. SEVENTEEN CHARGE WHICH IN AFTER TAX TERMS WAS TWO HUNDRED SEVENTY FIVE MILLION DOLLARS OR SIX DOLLARS AND NINETY NINE CENTS A SHARE THE CHARGE RESULTED FROM A SETTLEMENT WITH THE GOVERNMENT THAT ALLOWED FORTY C. SEVENTEENS TO CONTINUE TO BE BUILT AS A RESULT MCDONNELL DROPPED MORE THAN ONE POINT SIX BILLION DOLLARS IN CLAIMS FOR COSTS RELATED TO THE PROGRAM SOME OF WHICH IT HAD COUNTED ON RECOVERING FROM THE GOVERNMENT IN LARGE PART THE CHARGE COVERS NEW INVESTMENT THAT MCDONNELL HAS AGREED TO MAKE IN THE C. SEVENTEEN PROGRAM FOR EXAMPLE THE COMPANY HAS AGREED TO PAY FOR ITS SHARE OF A FLIGHT TEST EXTENSION NEW DESIGN SYSTEMS COST MONITORING PROGRAMS AND A COST REDUCTION PROGRAM MR. LANESE SAID THE CHARGE WAS PARTIALLY OFFSET BY GAINS IN NINETEEN NINETY THREE OF TWO HUNDRED TWENTY MILLION DOLLARS OR FIVE DOLLARS AND SIXTY ONE CENTS A SHARE FROM THE SALE OF AN INFORMATION SYSTEMS UNIT RESOLUTION OF A TAX MATTER AND REVERSAL OF PART OF A ONE TIME CHARGE TAKEN IN NINETEEN NINETY TWO TO MEET NEW HEALTH CARE ACCOUNTING STANDARDS A YEAR AGO AFTER SEVERAL YEARS OF DISAPPOINTING FINANCIAL PERFORMANCE BY THE COMPANY MR. LANESE VOWED TO MEET A SERIES OF AGGRESSIVE FINANCIAL TARGETS FOR IMPROVING PROFITS AND CASH FLOW CUTTING DEBT AND RESURRECTING MCDONNELL DOUGLAS'S LOWERED CREDIT RATINGS AMONG THE GAINS IN THE PAST YEAR HAS BEEN A REDUCTION OF CORPORATE AEROSPACERELATED DEBT TO ONE POINT SIX THREE BILLION DOLLARS AT YEAR END FROM TWO POINT SEVEN SEVEN BILLION DOLLARS AT THE END OF NINETEEN NINETY TWO STRENGTHENED OPERATIONS INCLUDE THOSE MAKING F. SLASH A EIGHTEEN AND F. FIFTEEN FIGHTER AIRCRAFT THE COMPANY HOPES TO WIN A COMPETITION WITHIN THE NEXT MONTH IN WHICH IT IS TRYING TO GET A TWO BILLION DOLLAR ORDER FOR F. FIFTEENS FROM ISRAEL FOR NOW THE OUTLOOK IS BLEAK FOR THE COMPANY'S DOUGLAS AIRCRAFT COMPANY COMMERCIAL AIRPLANE BUSINESS IN LONG BEACH CALIFORNIA WHILE THE UNIT HAS BEEN SLIGHTLY PROFITABLE MR. LANESE SAID IT IS LIKELY TO DELIVER ONLY THREE OR FOUR JETLINERS IN THE FIRST QUARTER THE REST OF NINETEEN NINETY FOUR WILL SHOW IMPROVEMENT HE SAID BUT NINETEEN NINETY FIVE AND NINETEEN NINETY SIX COULD PROVE VERY DIFFICULT YEARS FOR THE OPERATION IF ORDERS DON'T IMPROVE ONE BRIGHT PROSPECT FOR THE COMMERCIAL AIRPLANE UNIT COMES FROM WIDESPREAD REPORTS THAT IT IS FAVORED TO WIN ORDERS FOR MORE THAN TWENTY SMALLER M. D. NINETY MODELS WHEN THE SAUDI ARABIAN STATE RUN CARRIER SAUDIA PLACES A LARGE ORDER FOR MANY SIZES OF JETLINERS HAGGAR CORPORATION BENEFITING FROM STRONG DEMAND FOR ITS WRINKLE RESISTANT ALL COTTON CLOTHING REPORTED THAT ITS FISCAL FIRST QUARTER PROFIT SOARED EIGHTFOLD WHILE ITS SALES JUMPED THIRTY FOUR PERCENT THE DALLAS MENSWEAR MAKER'S STOCK JUMPED ON THE RESULTS AS DID SHARES OF RIVAL FARAH INCORPORATED AN EL PASO TEXAS APPAREL CONCERN THAT ALSO MAKES WRINKLE RESISTANT CLOTHING HAGGAR SAID NET INCOME IN THE PERIOD WHICH ENDED DECEMBER THIRTY FIRST WAS FOUR POINT FIVE MILLION DOLLARS OR FIFTY ONE CENTS A SHARE COMPARED WITH FIVE HUNDRED TWENTY NINE THOUSAND DOLLARS OR EIGHT CENTS A SHARE A YEAR EARLIER THE MENSWEAR CONCERN SAID IT SHIPPED MORE THAN TWO POINT ONE MILLION PAIRS OF ITS WRINKLE RESISTANT COTTON PANTS IN THE LATEST QUARTER UP FROM TWO HUNDRED FIFTY THOUSAND IN THE YEAR EARLIER PERIOD IT PREDICTED CONTINUED STRONG DEMAND FOR THE PRODUCT IN THE REST OF THE FISCAL YEAR AS WELL AS FOR TWO NEW WRINKLE RESISTANT PRODUCTS SPORT SHIRTS AND BOY'S PANTS IN NASDAQ STOCK MARKET TRADING HAGGAR CLIMBED FOUR DOLLARS OR FOURTEEN PERCENT TO THIRTY TWO DOLLARS AND TWENTY FIVE CENTS FARAH ROSE EIGHTY SEVEN POINT FIVE CENTS OR SIX POINT EIGHT PERCENT TO THIRTEEN DOLLARS AND SEVENTY FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ONLY THE INTELLIGENT ARE MAKING MONEY A TECHNICAL REBOUND WAS IT MOVED LEFT OR RIGHT KEYSTONE FINANCIAL INCORPORATED SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE FRANKFORD CORPORATION A SOUTHEASTERN PENNSYLVANIA BANKING COMPANY WITH ABOUT SIX HUNDRED SIXTY ONE MILLION DOLLARS IN ASSETS KEYSTONE A BANK HOLDING COMPANY BASED IN HARRISBURG PENNSYLVANIA WILL PAY ABOUT ONE HUNDRED THIRTY ONE POINT FIVE MILLION DOLLARS IN STOCK OR ONE POINT THREE THREE THREE KEYSTONE SHARES FOR EACH FRANKFORD SHARE KEYSTONE SAID THE ACQUISITION WOULD COMPLEMENT ITS SUBURBAN PHILADELPHIA OPERATIONS THE ACQUISITION TOGETHER WITH ANOTHER PENDING PURCHASE WILL BOOST KEYSTONE'S ASSETS TO ABOUT FOUR POINT FIVE BILLION DOLLARS IN NASDAQ STOCK MARKET TRADING KEYSTONE SHARES CLOSED AT TWENTY NINE DOLLARS AND SEVENTY FIVE CENTS DOWN TWENTY FIVE CENTS WHILE FRANKFORD SHARES SLIPPED THIRTY SEVEN POINT FIVE CENTS TO THIRTY SEVEN POINT ONE TWO FIVE DOLLARS THE ARCTIC COLD FRONT SWEEPING ACROSS MUCH OF THE COUNTRY PUT A FREEZE ON BUSINESS AND CONSUMERS CLOSING OFFICES CRIPPLING MASS TRANSIT SYSTEMS AND CAUSING WIDESPREAD ELECTRICAL BLACKOUTS AND BROWNOUTS THE HUGE HIGH PRESSURE SYSTEM HOVERING OVER MUCH OF THE NATION WHICH HAS BROUGHT RECORD SUBZERO TEMPERATURES HAS HELD THE MIDWEST IN ITS GRIP FOR SEVERAL DAYS PROMPTING EVEN RUGGED MINNESOTANS TO CLOSE DOWN MOST STATE OFFICES AND MANY BUSINESSES RESIDENTS IN OTHER REGIONS LESS PREPARED FOR THE FRIGID CONDITIONS FACED POWER CUTBACKS NATURAL GAS CURTAILMENTS AND MANY SCHOOL PUBLIC OFFICE AND BUSINESS CLOSINGS IN ATLANTA THE COLD CRACKED AGING WATER MAINS AND NEARLY A MILLION RESIDENTS WERE ASKED NOT TO WASH CLOTHES OR TAKE SHOWERS OR BATHS UNTIL THE LINE WAS FIXED PENNSYLVANIA AND WASHINGTON D. C. DECLARED A STATE OF EMERGENCY WHILE KENTUCKY EXTENDED A STATE OF EMERGENCY INTO A THIRD DAY TRANSPORTATION PROBLEMS AFFECTED MANY BUSINESSES PARTICULARLY IN KENTUCKY WHERE ICE AND SNOW SHUT DOWN THE ENTIRE INTERSTATE HIGHWAY SYSTEM HUNDREDS OF RIGS JAMMED THE PARKING LOT OF A MALL IN FLORENCE KENTUCKY AWAITING THE HIGHWAYS' RE OPENINGS WHILE OTHERS CAMPED IN RESTAURANTS SERVICE STATIONS AND EMERGENCY NATIONAL GUARD CENTERS QUOTE PEOPLE ARE GETTING PRETTY TESTY QUOTE SAID MAJOR JOHN WITT OF THE STATE POLICE MEANWHILE UNITED PARCEL SERVICE OF AMERICA INCORPORATED'S LOUISVILLE KENTUCKY HUB WHICH SORTS MORE THAN SIXTY PERCENT OF U. P. S. DELIVERIES WAS SHUT DOWN EARLY IN THE WEEK HOLDING UP MORE THAN FOUR HUNDRED THOUSAND PACKAGES WITH MANY OF ITS LOUISVILLE EMPLOYEES STRANDED U. P. S. REROUTED THOUSANDS OF PACKAGES ON TRAINS AND TRUCKS AND RENTED A FLEET OF LEAR JETS TO HANDLE OVERNIGHT DELIVERIES THE WEATHER RELATED PROBLEMS ARE EXPECTED TO COST THE SHIPPING GIANT MORE THAN ONE HUNDRED MILLION DOLLARS IN ADDITIONAL EXPENSES AND LOST BUSINESS BEFORE THE SYSTEM IS RUNNING FULL BLAST TODAY SAID KENT C. OZ NELSON THE COMPANY'S CHIEF EXECUTIVE OFFICER NOT EVERY BUSINESS WAS UPSET ABOUT THE COLD WE ABSOLUTELY LOVE THIS WEATHER SAID A SPOKESMAN FOR JOHNSON CONTROLS INCORPORATED OF MILWAUKEE ONE OF THE LARGEST MAKERS OF AUTOMOTIVE BATTERIES INCLUDING THE DIEHARD LINE WHEN THE TEMPERATURE DROPS OUR BATTERY SALES GO UP JAMES KEYES JOHNSON CONTROLS' CHIEF EXECUTIVE OFFICER HAS INSTRUCTED THE RECEPTIONIST AT CORPORATE HEADQUARTERS TO REMIND EMPLOYEES WHO COME IN COMPLAINING ABOUT THE COLD WHAT BUSINESS WE'RE IN THE SPOKESMAN SAID SIMILARLY QUAKER OATS COMPANY SAID ITS HOT OATMEAL WAS ENJOYING HUGE SALES THIS WEEK BUT SUCH UPBEAT REACTION WAS RARE FOR SOME INSURANCE COMPANIES CLAIMS FROM COLLAPSED ROOFS AND FALLEN GUTTERS COULD EXCEED THE LOSSES FROM MONDAY'S EARTHQUAKE IN LOS ANGELES DEDUCTIBLES FOR SUCH CLAIMS ARE ONLY A FEW HUNDRED DOLLARS RATHER THAN SEVERAL THOUSAND DOLLARS FOR EARTHQUAKE COVERAGE IF PIPES BURST THAT'S COVERED SAID SEAN MOONEY ECONOMIST FOR THE INSURANCE INFORMATION INSTITUTE UTILITIES WERE HARD PRESSED TO COPE WITH THE WEATHER PROBLEMS GAS AND ELECTRICITY USE SURGED TO RECORDS FORCING UTILITIES TO RESORT TO UNUSUAL METHODS OF MAINTAINING BALANCE ON THEIR SYSTEMS OFFICIALS WITH PJM INTERCONNECTION ASSOCIATION A POWER SHARING SYSTEM FOR MANY MID ATLANTIC ELECTRIC UTILITIES SAID THE SITUATION WAS THE WORST IN MORE THAN TWENTY YEARS POWER COMPANIES IN MANY EASTERN STATES REDUCED VOLTAGE TO CUSTOMERS IMPOSED CONTROLLED OUTAGES AND URGED CUSTOMERS TO TURN THEIR THERMOSTATS DOWN TO REDUCE THE DRAIN ON ENERGY SUPPLIES GAS UTILITIES TOOK INTERRUPTIBLE BUSINESS CUSTOMERS OFF THEIR SYSTEMS TO ENSURE RESIDENTIAL USERS COULD REMAIN WARM AND AS ROADS SIDEWALKS STEPS AND OVERPASSES ICED UP SUPPLY PROBLEMS MADE ROCK SALT MORE AND MORE SCARCE AKZO SALT INCORPORATED A UNIT OF AKZO N. V. OF THE NETHERLANDS SAID IT HAS ENOUGH SALT BUT IT WAS HAVING TROUBLE GETTING PORTIONS OF ITS TWO MILLION TONS OF SALT ON THE GROUND TO MUNICIPALITIES IN THE NORTHEAST QUOTE IT'S BEEN DIFFICULT BUT WE'RE NOT READY TO CALL UNCLE YET QUOTE SAID CATHERINE BOLTON A SPOKESWOMAN FOR AKZO PATHMARK STORES INCORPORATED HAS FREQUENTLY BEEN OUT OF STOCK OF SEVERAL COLD FIGHTING ITEMS ROCK SALT WINDSHIELD WIPER FLUID AND FLUIDS TO KEEP AUTO GAS LINES FROM FREEZING UP MANY OF THE COMPANY'S STORES HAVE ALSO SEEN A RUN ON CAT LITTER USED TO HELP GIVE CARS TRACTION COLD MEDICINES AND PRESCRIPTIONS FOR ANTIBIOTICS CONRAIL INCORPORATED SAID THE SEVERE COLD IS CAUSING WIDESPREAD BREAKDOWNS AND DELAYS THROUGHOUT ITS FOURTEEN STATE RAIL SYSTEM IN THE NORTHEAST AND MIDWEST AMONG THE PROBLEMS CRACKED RAILS SIGNAL FAILURES LOCOMOTIVE BREAKDOWNS AND AN INABILITY OF CREWS TO DRIVE TO WORK THE RAILROAD IS RUNNING SHORTER TRAINS BECAUSE AIR BRAKES DON'T WORK PROPERLY IN THE EXTREME COLD THE RAILROAD ALSO WAS EXPERIENCING SOME SHORTAGES OF CREWS YOU WOULD HAVE TO GO BACK TO THE WINTER OF NINETEEN SEVENTY SEVEN TO NINETEEN SEVENTY EIGHT TO EQUAL THE EFFECTS OF THE CURRENT WEATHER SAID A CONRAIL SPOKESMAN IT IS AFFECTING US EVERYWHERE WE GO HE ADDED WE'RE GETTING THE FREIGHT THROUGH BUT IT IS TAKING LONGER MANY FREIGHT AND RAIL SHIPMENTS WERE DELAYED TWELVE TO THIRTY SIX HOURS MANUFACTURERS THAT HAVE ADOPTED JUST IN TIME PRODUCTION SCHEDULES ARE BEING HURT AS A RESULT SAID J. SCOTT HAMILTON SENIOR ASSOCIATE OF ARTHUR D. LITTLE INCORPORATED A CONSULTING FIRM IN CAMBRIDGE MASSACHUSETTS SOME MANUFACTURERS HAVE SHUT DOWN FOR A SHIFT OR TWO WHEN SHIPMENTS OF CRITICAL PARTS WERE DELAYED HOWEVER MR. HAMILTON SAYS THE SLOWDOWNS WILL BE QUOTE IMPERCEPTIBLE TO MOST CONSUMERS QUOTE FORD MOTOR COMPANY WAS AMONG THE HARDEST HIT AMONG MANUFACTURERS CLOSING TWO PLANTS IN LOUISVILLE KENTUCKY AND ELEVEN OTHER PLANTS IN FOUR STATES AND ONTARIO OTHER MAJOR AUTO MAKERS ALSO SHUT PLANTS IN WASHINGTON MANY FEDERAL GOVERNMENT OFFICES CLOSED AND EVEN THE ENERGY DEPARTMENT LOST ENERGY A STEAM PLANT THAT SUPPLIES HEAT TO SEVERAL FEDERAL OFFICES BROKE DOWN AND BY LATE YESTERDAY MORNING SHIVERING EMPLOYEES AT THE ENERGY AGRICULTURE AND COMMERCE DEPARTMENTS WERE HEADED HOME BUT BY YESTERDAY THERE WERE SIGNS THAT NEARLY A WEEK OF PUNISHING COLD WAS RELENTING IN THE UPPER MIDWEST IN CHICAGO WINDS DECLINED AND TEMPERATURES INCHED ABOVE ZERO AFTER HITTING A LOW OF TWENTY ONE BELOW ZERO AND A HIGH FOR THE DAY ON TUESDAY OF ELEVEN BELOW A SPOKESWOMAN FOR THE CITY OF CHICAGO NOTED THAT ON TUESDAY MORE THAN FIVE HUNDRED O'HARE FLIGHTS WERE CANCELED INCLUDING MORE THAN FOUR HUNDRED BY U. A. L. CORPORATION'S UNITED AIRLINES ALONE BECAUSE OF THE RELATIVELY LOW NUMBER OF SEATS THAT HAD BEEN SOLD SHE NOTED CARRIERS FREQUENTLY CHOSE TO CONSOLIDATE A NUMBER OF FLIGHTS TO CERTAIN DESTINATIONS BUT WE'RE BACK ON TRACK NOW SHE ADDED LATE YESTERDAY TAKECARE INCORPORATED CONCORD CALIFORNIA SAID SOME OF ITS SHAREHOLDERS HAVE FILED A LAWSUIT IN DELAWARE CHANCERY COURT TO BLOCK ITS PROPOSED EIGHT HUNDRED TWENTY NINE MILLION DOLLAR ACQUISITION BY F. H. P. INTERNATIONAL CORPORATION THE HOLDERS WHO COLLECTIVELY OWN TWENTY TWO PERCENT OF TAKECARE'S STOCK ALLEGE THAT THE COMPANY'S BOARD NEGLECTED ITS FIDUCIARY DUTIES IN AGREEING TO SELL THE COMPANY THAT AGREEMENT WAS ANNOUNCED JANUARY TENTH TAKECARE AND F. H. P. BASED IN FOUNTAIN VALLEY CALIFORNIA ARE BOTH HEALTH MAINTENANCE ORGANIZATIONS THEIR PLANNED COMBINATION WOULD CREATE ONE OF THE THREE LARGEST PUBLICLY TRADED H. M. O.S IN THE COUNTRY TAKECARE SAID THE SUIT IS WITHOUT MERIT AND THAT IT IS PROCEEDING WITH PLANS TO CLOSE THE DEAL CANADIAN IMPERIAL BANK OF COMMERCE MONTREAL AGREED TO MERGE ITS INVESTMENT MANAGEMENT UNIT WITH T. A. L. INVESTMENT COUNSEL LIMITED ONE OF CANADA'S BIGGEST PENSION FUND MANAGEMENT FIRMS THE BANK WILL PAY SIXTY FIVE MILLION TO SEVENTY MILLION CANADIAN DOLLARS FORTY NINE POINT FIVE MILLION U. S. DOLLARS TO FIFTY THREE POINT THREE MILLION U. S. DOLLARS IN CASH OR SHARES FOR A FIFTY FIVE PERCENT OWNERSHIP INTEREST IN THE MERGED COMPANY BUT T. A. L. WILL RETAIN MANAGEMENT CONTROL AND MAJORITY BOARD REPRESENTATION T. A. L. AND C. I. B. C. WILL EXERCISE EQUAL VOTING RIGHTS IN THE COMPANY WHICH WILL OPERATE UNDER THE T. A. L. NAME THE AGREEMENT FITS WITH A TREND AMONG CANADIAN BANKS TO EXPAND INTO INVESTMENT MANAGEMENT FOLLOWING RECENT DEREGULATION THE MERGED COMPANY WILL HAVE ABOUT TWENTY BILLION CANADIAN DOLLARS IN ASSETS UNDER ADMINISTRATION THE MERGER SUBJECT TO DUE DILIGENCE AND REGULATORY APPROVAL IS EXPECTED TO CLOSE AROUND FEBRUARY TWENTY EIGHTH U. A. L. CORPORATION'S UNITED AIRLINES SAYS ITS NONRESTRICTED ROUND TRIP FARE BETWEEN CHICAGO AND NEWARK N. J. IS SIX HUNDRED EIGHTY TWO DOLLARS FOR MOST TRAVELERS AN ARTICLE YESTERDAY INCORRECTLY REPORTED THE FARE WAS ONE THOUSAND ONE HUNDRED TWENTY DOLLARS WHICH IS THE HIGHEST PUBLISHED FARE BUT NOT WHAT MOST TRAVELERS PAY GRUPO MEXICANO DE DESARROLLO'S INITIAL PUBLIC OFFERING WAS PRICED AT THIRTY FOUR DOLLARS A UNIT ON DECEMBER FOURTEENTH NINETEEN NINETY THREE EACH UNIT CONSISTED OF A SERIES L. SHARE AND A SERIES B. SHARE WHICH IMMEDIATELY BEGAN TRADING SEPARATELY AT NINETEEN DOLLARS FOR THE L. SHARES AND EIGHTEEN POINT EIGHT SEVEN FIVE DOLLARS FOR THE B. SHARES THE L. SHARES CLOSED AT TWENTY FOUR DOLLARS AND FIFTY CENTS ON JANUARY FOURTEENTH NINETEEN NINETY FOUR UP TWENTY NINE PERCENT FROM THE OPENING PRICE THE B. SHARES CLOSED AT TWENTY FOUR DOLLARS AND TWENTY FIVE CENTS UP TWENTY EIGHT PERCENT FROM THE OPENING PRICE THESE FIGURES WERE MISSTATED IN YESTERDAY'S INVESTMENT INSIGHT TABLE WHICH REFLECTED THE ENTIRE UNIT PRICE AS THE OFFERING PRICE BUT ONLY THE L. SHARE CLOSING PRICE MCKESSON CORPORATION SAID NET INCOME CLIMBED FOURTEEN PERCENT TO THIRTY ONE POINT SEVEN MILLION DOLLARS IN ITS THIRD QUARTER ON AN EIGHT PERCENT SALES GAIN BUOYED BY RAPID GROWTH OF ITS MANAGED PRESCRIPTIONCARE SERVICE THE RESULTS FOR THE FISCAL THIRD QUARTER ENDED DECEMBER THIRTY FIRST EQUIVALENT TO SIXTY NINE CENTS A SHARE COMPARED WITH TWENTY SEVEN POINT EIGHT MILLION DOLLARS OR SIXTY CENTS A SHARE A YEAR AGO SALES WERE THREE POINT TWO FIVE BILLION DOLLARS UP EIGHT PERCENT FROM THREE POINT OH ONE BILLION DOLLARS ANALYSTS FIGURED THE SAN FRANCISCO BASED COMPANY WHOSE RAZOR THIN PROFIT MARGINS ARE TYPICAL OF A DISTRIBUTION CONCERN WOULD DO SLIGHTLY BETTER EARNING SEVENTY TWO CENTS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MCKESSON SHARES CLOSED AT FIFTY FOUR POINT EIGHT SEVEN FIVE DOLLARS DOWN EIGHTY SEVEN POINT FIVE CENTS THE DRUG DISTRIBUTOR AND HEALTH CARE SERVICES CONCERN NOTED THAT REVENUE AT ITS P. C. S. HEALTH SYSTEMS DIVISION WHICH PROVIDES PRESCRIPTION SERVICES FOR FORTY FIVE MILLION PEOPLE ROSE SIXTY SEVEN PERCENT IN THE QUARTER IN RESPONSE TO JONATHAN MACEY'S DECEMBER TWENTY NINTH EDITORIAL PAGE PIECE QUOTE MUTUAL BANKS TAKE YOUR MONEY AND RUN QUOTE MR. MACEY IS CONFUSED AND WRONG ABOUT THE DIFFERENCE BETWEEN PROPERTY RIGHTS EITHER IN RUSSIA OR THE U. S. AND THE RIGHTS OF DEPOSITORS IN MUTUAL SAVINGS BANKS MUTUAL DEPOSITORS RECEIVE A GUARANTEED RETURN OF PRINCIPAL AND EARNED INTEREST UP TO THE LIMITS SET FORTH UNDER THE FEDERAL DEPOSIT INSURANCE ACT THEY ARE NOT AT RISK AND THUS THEY ARE NEITHER OWNERS NOR HAVE PROPERTY RIGHTS EXCEPT ARGUABLY IN A SOLVENT LIQUIDATION AS THOSE TERMS ARE TRADITIONALLY UNDERSTOOD UNDER U. S. LAW NONETHELESS A THRIFT DESIRING TO CONVERT TO STOCK FORM MUST RECEIVE THE APPROVAL OF DEPOSITORS UNDER NEW YORK LAW AND IF ITS CONVERSION IS APPROVED DEPOSITORS MAY INVEST IN THE STOCK TO BE OFFERED MR. MACEY WRONGLY CLAIMS THAT A DECISION TO CONVERT IS LEFT SOLELY TO MANAGEMENT THAT EXPLAINS HIS ERRONEOUS THESIS THAT CONTROL OF MUTUAL BANKS SHOULD BE DETERMINED BY MARKET FORCES STATE AND FEDERAL LAWS DO NOT REQUIRE MUTUAL THRIFTS TO CONVERT TO STOCK FORM NOR CAN THEY BE COMPELLED TO DO SO MARKET FORCES ARE THUS LESS IMPORTANT IN THE CONTEXT OF A MUTUAL TO STOCK CONVERSION THAN THEY WOULD BE IN A SALE OF A STOCK INSTITUTION IF MUTUALS CANNOT BE FORCED TO CONVERT SUBJECTING THEM TO HOSTILE CHANGES IN CONTROL IF THEY TRY TO CONVERT WOULD DISCOURAGE MOST FROM TRYING THUS STATE AND FEDERAL LAWS LEAVE THE DECISION WHETHER TO INITIATE A CONVERSION TO MANAGEMENT BUT THE ULTIMATE DECISION WHETHER TO CONVERT IS NOT LEFT TO MANAGEMENT IN NEW YORK THE SUPERINTENDENT OF BANKS MUST APPROVE A CONVERSION PLAN BASED UPON EXACTING REQUIREMENTS DESIGNED TO PROTECT THE PUBLIC INTEREST AND THE INTERESTS OF DEPOSITORS THEN DEPOSITORS MUST APPROVE THE ACTUAL CONVERSION PROPOSAL BY AT LEAST SEVENTY FIVE PERCENT OF THE VOTES CAST ON THE ISSUE MR. MACEY'S FEAR THAT AN UNDERPRICED CONVERSION CAN LEAD TO UNDERCAPITALIZATION IS REAL HE OMITS TO STATE HOWEVER THAT THAT IS AN ISSUE INTO WHICH THE SUPERINTENDENT CURRENTLY IS INQUIRING AND THAT GREEN POINT SAVING BANK'S CONVERSION PLAN IS DEFERRED PENDING A DETERMINATION OF THE FACTS SURROUNDING THE APPRAISAL PROCESS EMPLOYED MR. MACEY'S STATEMENT THAT THE SUPERINTENDENT OF BANKS SENT A LETTER TO REPUBLIC NEW YORK CORPORATION SAYING THAT ITS PROPOSED SPECIAL INTEREST PAYMENT WOULD NOT BE LEGAL IF OFFERED TO INFLUENCE THE VOTES OF DEPOSITORS IS INACCURATE THE SUPERINTENDENT DID NOT QUOTE SEND QUOTE A LETTER TO REPUBLIC A LEGAL OPINION ON THE SUBJECT WAS REQUESTED BY REPUBLIC MR. MACEY ALSO DOES NOT DISCLOSE THAT UNLIKE OUR UNDERSTANDING OF THE RULE IN OTHER STATES AND UNDER FEDERAL LAW THE SUPERINTENDENT OUTLINED CIRCUMSTANCES IN WHICH A SPECIAL INTEREST PAYMENT TO DEPOSITORS COULD BE MADE I. IF THERE IS A LEGITIMATE BUSINESS PURPOSE FOR THE PAYMENT II IF THE PRIMARY PURPOSE OF THE PAYMENT IS NOT TO INDUCE A FAVORABLE VOTE OF DEPOSITORS AND III IF THE PAYMENT DOES NOT RAISE SAFETY OR SOUNDNESS CONCERNS THE IMPACT OF THE LETTER WAS TO ALLOW A PAYMENT TO DEPOSITORS THAT HERETOFORE MIGHT HAVE BEEN IMPERMISSIBLE NOT TO PROHIBIT OR LIMIT SUCH A PAYMENT AS MR. MACEY IMPLIES UNDER FEDERAL LAW AND UNDER THE LAWS OF THE STATES OF WHICH WE ARE FAMILIAR NO SUCH PAYMENT IS PERMISSIBLE UNDER ANY CIRCUMSTANCES REPUBLIC NEVER DEIGNED TO MEET ANY OF THESE STANDARDS SO IT IS UNCLEAR ON WHAT BASIS IF ANY MR. MACEY STATES THAT THE PAYMENT WAS NOT MADE SOLELY TO INFLUENCE VOTES INDEED CONTRARY TO MR. MACEY'S ASSERTION THE PAYMENT WAS NEVER MADE MR. MACEY STATES THAT THE SUPERINTENDENT'S PRESS RELEASE ADVISING THAT REPUBLIC'S OFFER WAS ILLEGAL AND IMPROPER WAS ISSUED WITHOUT PRIOR NOTICE TO REPUBLIC OF THE SUPERINTENDENT'S VIEWS AND WAS NOT ACCOMPANIED BY ANY CITATION OF LEGAL AUTHORITY BOTH ASSERTIONS ARE FALSE REPUBLIC'S REPRESENTATIVES WERE INFORMED OF THE SUPERINTENDENT'S VIEWS BEFORE THEY TOOK THE ACTION THAT PROMPTED HIS RELEASE MOREOVER THE BASIS FOR THE SUPERINTENDENT'S POSITION WAS DISCLOSED TO REPUBLIC MR. MACEY ASSERTS THAT THE SUPERINTENDENT THEN LAUNCHED AN INVESTIGATION OF REPUBLIC THIS IS UNTRUE ON NOVEMBER EIGHTEENTH THE SUPERINTENDENT MERELY REQUESTED OF BOTH REPUBLIC AND GREEN POINT THAT THEY PROVIDE THE DEPARTMENT WITH CERTAIN ADDITIONAL BACKGROUND MATERIAL AND INFORMATION CONSOLIDATED EDISON COMPANY MOODY'S INVESTORS SERVICE INCORPORATED SAID IT IS REVIEWING FOR A POSSIBLE DOWNGRADE ITS RATINGS ON THREE POINT SEVEN BILLION DOLLARS OF DEBT ISSUED BY CON EDISON MOODY'S SAID THE REVIEW REFLECTS CONCERNS ABOUT THE COMPANY'S ABILITY TO MAKE ITS INTEREST PAYMENTS ON DEBT IN VIEW OF COMPETITIVE PRESSURES AND UNCERTAINTY ABOUT FUTURE RATE INCREASES MOODY'S ALSO SAID IT IS CONCERNED ABOUT CON EDISON'S FUTURE OBLIGATIONS TO PAY INDEPENDENT POWER PRODUCERS UNDER LONG TERM CONTRACTS THAT DON'T APPEAR ON ITS BALANCE SHEET A CON EDISON SPOKESMAN SAID THE COMPANY PLANS TO DEMONSTRATE THAT IT HAS QUOTE CONSIDERABLE FINANCIAL STRENGTH A VERY SOUND BALANCE SHEET AND VERY GOOD FINANCIAL FLEXIBILITY QUOTE AMONG THE RATINGS UNDER REVIEW ARE THE DOUBLE A ONE RATING OF CON EDISON'S FIRST AND REFUNDING MORTGAGE BONDS MOODY'S INVESTORS SERVICE INCORPORATED PLACED THE CREDIT RATINGS OF CONSOLIDATED EDISON COMPANY OF NEW YORK UNDER REVIEW FOR POSSIBLE DOWNGRADES IN PART OVER CONCERNS ABOUT THE COMPANY'S ABILITY TO IMPROVE DEBT PROTECTION MEASURES IN FRIDAY'S CREDIT RATINGS COLUMN IT WAS INCORRECTLY STATED THAT MOODY'S WAS CONCERNED ABOUT THE COMPANY'S ABILITY TO MAKE ITS INTEREST PAYMENTS ON DEBT IN RESPONSE TO YOUR DECEMBER SIXTEENTH ADVERTISING COLUMN QUOTE CRITICS CRY FOUL AT NIKE SPOTS WITH ACTOR QUOTE AS THE MOTHER OF A WONDERFUL YOUNG MAN WITH SCHIZOPHRENIA I AGREE WITH SHADRACH STANLEIGH OF THE NATIONAL STIGMA CLEARINGHOUSE WHAT IS THE POINT OF NIKE'S AD CAMPAIGN SHOWING A SLEEPLESS TIC RIDDEN SNEAKER WHIFFING MENTALLY ILL EX REFEREE I FAIL TO SEE HOW THIS AD CONCEPT HELPS SELL SHOES THE ADS ARE NOT FUNNY TO THOSE OF US WHO KNOW THE TORMENTS OF SLEEPLESS NIGHTS I AM AFRAID TO CLOSE MY EYES MY SON HAS TOLD ME WHAT MONSTERS ARE GOING TO BE MY COMPANIONS I LIE AWAKE AT NIGHT KEEPING MY OWN MONSTERS AT BAY WHO WILL WATCH OVER MY ONLY SON AFTER I A WIDOW AM GONE WATCHING THE ADS AN INEXPRESSIBLE SORROW COMES OVER US MY SON WAS STRICKEN AT AGE SEVENTEEN HE COULD HAVE BEEN ANYTHING BUT NIKE DREAMS ARE ONLY DREAMS NOW AND HE DOESN'T BUY NIKES ANY MORE MRS. VILLAMIL WAS CHOSEN TO BE ONE OF FIFTY FACES OF HOPE BY PRESIDENT CLINTON FOR HER ADVOCACY ON BEHALF OF PEOPLE WITH MENTAL ILLNESS NIKE IS INDEED STRETCHING THE ENVELOPE OF ADVERTISING CREATIVITY AND DOING SO WITH THE IDEALS OF HUMOR AND INGENUITY AT THE EXPENSE OF NO SPECIAL INTEREST GROUPS THE NATIONAL STIGMA CLEARINGHOUSE AND OTHER GRIM FACED POLITICALLY CORRECT WATCHDOG GROUPS SEEM INTENT ON IMPOSING THEIR NARROW MINDED INTERPRETATIONS ON THE MAJORITY OF OUR SOCIETY UPTIGHT SPECIAL INTEREST ORGANIZATIONS THAT EFFECTIVELY BULLY CORPORATE AMERICA INTO ACQUIESCENCE SERVE TO LIMIT FREEDOM OF EXPRESSION AND MORE IMPORTANTLY THE FREEDOM TO ACHIEVE MEDIOCRITY IS SYNONYMOUS WITH THE POLITICALLY CORRECT CROWD IT ALSO SEEMS RATHER CLEAR TO ME WHY STEVEN LEVITT PRESIDENT OF MARKETING EVALUATIONS AND CITED IN YOUR ARTICLE WAS NOT CONSULTED BY NIKE FOR THIS AD CAMPAIGN I'M AN IVY LEAGUE GRADUATE WITH A FAMILY AND SUCCESSFUL BUSINESS ALL OF MY FRIENDS ON THE POLITICAL RIGHT AND LEFT KNOW DENNIS HOPPER AND THOROUGHLY ENJOY THE CAMPAIGN DON'T HAMSTRING CREATIVE AGENCIES LIKE WEIDEN AND KENNEDY WITH ABSTRACT INTERPRETATIONS BY JOYLESS GROUPS WITH GIANT CHIPS ON THEIR POLITICALLY CORRECT SHOULDERS AN EXTRAORDINARY SHAREHOLDERS MEETING OF A. B. VOLVO IN GOTHENBURG SWEDEN ELECTED BERT OLOF SVANHOLM CHAIRMAN OF THE SWEDISH AUTOMOTIVE GROUP IN LINE WITH AN EARLIER PROPOSAL MR. SVANHOLM IS PRESIDENT OF A. B. B. ASEA BROWN BOVERI LIMITED AN ENGINEERING CONCERN JOINTLY OWNED BY ASEA A. B. OF SWEDEN AND B. B. C. BROWN BOVERI A. G. OF SWITZERLAND HE SUCCEEDS PEHR G. GYLLENHAMMAR WHO RESIGNED IN DECEMBER AFTER THE COLLAPSE OF A PLAN TO MERGE VOLVO'S VEHICLE OPERATIONS WITH THOSE OF FRENCH PARTNER RENAULT S. A. IT WAS NOT CLEAR WHO WOULD SUCCEED MR. SVANHOLM AT A. B. B. ASEA BROWN BOVERI MEANWHILE IN A SPEECH TO SHAREHOLDERS VOLVO PRESIDENT SOEREN GYLL DIDN'T GIVE ANY CLEAR INDICATION OF VOLVO'S STRATEGY OR THE FUTURE OF THE RENAULT ALLIANCE HE ALSO SAID NINETEEN NINETY THREE CAR SALES ROSE TO THREE HUNDRED ELEVEN THOUSAND CARS THE FIRST ANNUAL INCREASE SINCE NINETEEN EIGHTY SIX THE UPSWING WAS MAINLY IN JAPAN SOUTHEAST ASIA AND NORTH AMERICA NATIONAL SEMICONDUCTOR CORPORATION SAID THE PATENT INFRINGEMENT LAWSUIT IT FILED LAST JULY AGAINST MITSUBISHI ELECTRIC CORPORATION IN LOS ANGELES AND DURHAM N. C. FEDERAL COURTS HAS BEEN SETTLED NATIONAL SEMICONDUCTOR BASED IN SANTA CLARA CALIFORNIA HAD ALLEGED THAT TOKYO BASED MITSUBISHI ILLEGALLY USED SOME OF ITS PROPRIETARY CHIP TECHNOLOGIES IN MITSUBISHI PRODUCTS BEFORE THE SUIT WAS FILED THE TWO COMPANIES HAD ENGAGED IN CROSS LICENSING TALKS FOR TWO YEARS BUT REACHED NO AGREEMENTS TERMS OF THE SETTLEMENT WERE NOT DISCLOSED NATIONAL SEMICONDUCTOR SAID THE TWO COMPANIES ALSO RESOLVED A RELATED COMPLAINT IT LODGED WITH THE U. S. INTERNATIONAL TRADE COMMISSION THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT AON CORPORATION ONE HUNDRED MILLION DOLLARS OF NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS SIX POINT THREES AT NINETY NINE POINT SIX NINE SEVEN TO YIELD SIX POINT THREE FOUR ONE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF SIXTY THREE BASIS POINTS ABOVE TREASURYS RATED SINGLE A TWO BY MOODY'S INVESTORS SERVICE INCORPORATED AND DOUBLE A BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY AND COMPANY FAMILY RESTAURANTS INCORPORATED FOUR HUNDRED FIFTY MILLION DOLLARS OF DEBT PRICED BY UNDERWRITERS LED BY DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION ACCORDING TO M. C. M. CORPORATEWATCH THE FIRST TRANCHE THREE HUNDRED MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIRST TWO THOUSAND TWO WAS PRICED AT PAR TO YIELD NINE POINT SEVEN FIVE PERCENT THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLE B. ONE BY MOODY'S AND SINGLE B. BY S. AND P. THE SECOND TRANCHE ONE HUNDRED FIFTY MILLION DOLLARS FACE OF SENIOR SUBORDINATED DISCOUNT NOTES DUE FEBRUARY FIRST TWO THOUSAND FOUR WAS PRICED AT SEVENTY TWO POINT SIX NINE SEVEN TO YIELD TEN POINT EIGHT SEVEN FIVE PERCENT THE NOTES WILL PAY NO COUPON FOR FOUR YEARS THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLE B. THREE BY MOODY'S AND SINGLE B. MINUS BY S. AND P. FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED MILLION DOLLARS OF NOTES DUE JANUARY TWENTY SIXTH NINETEEN NINETY SIX PRICED AT PAR TO YIELD FOUR POINT ONE TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF THREE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED FEDERAL HOME LOAN MORTGAGE CORPORATION TWO HUNDRED FIFTY MILLION DOLLARS OF NOTES DUE JANUARY TWENTY SEVENTH TWO THOUSAND FOUR PRICED INITIALLY AT PAR TO YIELD SIX POINT TWO SEVEN PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF FIFTY SEVEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY FIRST CHICAGO CORPORATION TWO HUNDRED MILLION DOLLARS OF NOTES DUE JANUARY THIRTIETH TWO THOUSAND NINE PRICED AS SIX POINT THREE SEVEN FIVES AT NINETY EIGHT POINT EIGHT EIGHT SIX TO YIELD SIX POINT FOUR NINE TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF EIGHTY BASIS POINTS ABOVE TREASURYS RATED B. A. A. ONE BY MOODY'S AND SINGLE A MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY C. S. FIRST BOSTON INCORPORATED M. F. S. COMMUNICATIONS CORPORATION FIVE HUNDRED MILLION DOLLARS PROCEEDS OF SENIOR DISCOUNT NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AT SIXTY THREE POINT FOUR TWO SIX TO YIELD NINE POINT THREE SEVEN FIVE PERCENT THE NOTES WON'T PAY A COUPON FOR FIVE YEARS THE NOTES ARE NONCALLABLE FOR FIVE YEARS AND ARE RATED SINGLE B. THREE BY MOODY'S AND SINGLE B. BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED PRIVATE EXPORT FUNDING CORPORATION ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF SENIOR SECURED NOTES DUE FEBRUARY FIRST TWO THOUSAND FOUR PRICED AS FIVE POINT EIGHTS AT NINETY NINE POINT EIGHT FIVE THREE TO YIELD FIVE POINT EIGHT TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF THIRTY BASIS POINTS ABOVE TREASURYS RATED TRIPLE A BY MOODY'S AND TRIPLE A BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY B. T. SECURITIES CORPORATION PLANTRONICS INCORPORATED INITIAL OFFERING OF THREE POINT SIX MILLION COMMON SHARES PRICED AT TWELVE DOLLARS AND FIFTY CENTS EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INCORPORATED REYNOLDS METALS COMPANY TEN MILLION SHARES OF SEVEN PERCENT CONVERTIBLE PREFERRED STOCK PRICED AT FORTY SEVEN DOLLARS AND TWENTY FIVE CENTS EACH ACCORDING TO THE COMPANY THE ISSUE CALLED PREFERRED REDEEMABLE INCREASED DIVIDEND EQUITY SECURITIES WILL PAY AN ANNUAL DIVIDEND OF THREE DOLLARS AND THIRTY ONE CENTS A SHARE EACH SHARE WILL CONVERT INTO A SHARE OF COMMON STOCK DECEMBER THIRTY FIRST NINETEEN NINETY SEVEN UNLESS REDEEMED OR CONVERTED EARLIER THE COMPANY CAN REDEEM THE SHARES BEGINNING DECEMBER THIRTY FIRST NINETEEN NINETY SIX UNLESS REDEEMED BEFORE DECEMBER THIRTY FIRST NINETEEN NINETY SEVEN EACH SHARE IS CONVERTIBLE AT THE HOLDER'S OPTION INTO ZERO POINT EIGHT TWO COMMON SHARE MERRILL LYNCH AND COMPANY IS THE LEAD UNDERWRITER SOUTHEASTERN MICHIGAN GAS ENTERPRISES INCORPORATED SIX HUNDRED FIFTY THOUSAND COMMON SHARES PRICED AT TWENTY DOLLARS AND FIFTY CENTS EACH THROUGH UNDERWRITER DEAN WITTER REYNOLDS INCORPORATED ACCORDING TO THE COMPANY EQUITY RESIDENTIAL PROPERTIES TRUST FIVE MILLION COMMON SHARES PRICED AT TWENTY NINE DOLLARS EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY GABLES PROPERTIES TRUST INITIAL OFFERING OF EIGHT POINT TWO MILLION SHARES OF BENEFICIAL INTEREST PRICED AT TWENTY TWO DOLLARS AND FIFTY CENTS EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY GLIMCHER REALTY TRUST INITIAL OFFERING OF FIFTEEN POINT EIGHT MILLION SHARES OF BENEFICIAL INTEREST PRICED AT TWENTY DOLLARS AND TWENTY FIVE CENTS EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INCORPORATED MASSACHUSETTS TWO HUNDRED MILLION DOLLARS OF SERIES A CONSOLIDATED LOAN OF NINETEEN NINETY FOUR GENERAL OBLIGATION BONDS APPARENTLY WON BY A BEAR STEARNS AND COMPANY GROUP YIELDS FOR REOFFERED BONDS RANGE FROM THREE POINT FOUR PERCENT IN NINETEEN NINETY SIX TO FIVE POINT THREE FIVE PERCENT IN TWO THOUSAND FOURTEEN BONDS DUE IN TWO THOUSAND FIVE TO OH EIGHT ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. THE BALANCE OF THE BONDS HAVE A SINGLE A RATING FROM MOODY'S AND A SINGLE APLUS RATING FROM S. AND P. NORTH CAROLINA FOUR HUNDRED MILLION DOLLARS OF CAPITAL IMPROVEMENT BONDS APPARENTLY WON BY A C. S. FIRST BOSTON INCORPORATED GROUP YIELDS RANGE FROM TWO POINT THREE PERCENT IN NINETEEN NINETY FIVE TO FIVE PERCENT IN TWO THOUSAND TWELVE AND TWO THOUSAND THIRTEEN THE BONDS HAVE TRIPLE A RATINGS FROM MOODY'S AND S. AND P. WASHINGTON SUBURBAN SANITARY DISTRICT MARYLAND FOUR HUNDRED THIRTY FIVE POINT THREE MILLION DOLLARS OF VARIOUS NINETEEN NINETY FOUR IMPROVEMENT WATER SUPPLY SEWAGEDISPOSAL AND GENERAL CONSTRUCTION REFUNDING BONDS APPARENTLY WON BY A MORGAN STANLEY AND COMPANY GROUP YIELDS FOR REOFFERED BONDS RANGE FROM TWO POINT NINE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT TWO PERCENT IN TWO THOUSAND THIRTEEN TO FIFTEEN MOODY'S RATED THE ISSUE DOUBLE A ONE AND S. AND P. ASSIGNED A DOUBLE A RATING WISCONSIN ONE HUNDRED NINETEEN POINT EIGHT MILLION DOLLARS OF NINETEEN NINETY FOUR SERIES A IMPROVEMENT BONDS APPARENTLY WON BY A PRUDENTIAL SECURITIES INCORPORATED GROUP YIELDS RANGE FROM TWO POINT SEVEN FIVE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT TWO PERCENT IN TWO THOUSAND THIRTEEN AND TWO THOUSAND FOURTEEN MOODY'S AND S. AND P. HAVE RATED THE BONDS DOUBLE A FEDERAL HOME LOAN MORTGAGE CORPORATION FIVE HUNDRED MILLION DOLLARS OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INCORPORATED THE OFFERING SERIES ONE THOUSAND SIX HUNDRED EIGHTY TWO IS BACKED BY THE AGENCY'S THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS FEDERAL HOME LOAN MORTGAGE CORPORATION FIVE HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY NOMURA SECURITIES INTERNATIONAL INCORPORATED THE OFFERING SERIES ONE THOUSAND SIX HUNDRED EIGHTY ONE IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT SIX PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY SEVEN MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION TWO HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INCORPORATED THE OFFERING SERIES NINETEEN NINETY FOUR TO TWENTY TWO IS BACKED BY THE AGENCY'S STRIPS TRUST TWO HUNDRED FIFTY FOUR WHICH IN TURN IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN POINT FIVE PERCENT MORTGAGE SECURITIES FEDERAL NATIONAL MORTAGE ASSOCIATION TWO HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY BEAR STEARNS AND COMPANY THE OFFERING SERIES NINETEEN NINETY FOUR TO TWENTY FIVE IS BACKED BY THE AGENCY'S STRIPS TRUST TWO HUNDRED FIFTY TWO WHICH IN TURN IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES DANSK NATURGAS AS DENMARK FIVE HUNDRED MILLION DANISH KRONER OF SIX PERCENT EUROBONDS DUE FEBRUARY TWENTY THIRD TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT FOUR TWO VIA DEUTSCHE BANK A. G. LONDON AT RECOMMENDED REOFFER PRICE NINETY NINE POINT SIX TWO BONDS YIELD SIX POINT OH FIVE PERCENT A MARGIN OF FIFTEEN BASIS POINTS ABOVE COMPARABLE DANISH GOVERNMENT BOND GUARANTOR DENMARK FEES TWO EXPORT DEVELOPMENT CORPORATION CANADIAN AGENCY ONE HUNDRED FIFTY MILLION DOLLARS OF FLOATING RATE GLOBAL NOTES DUE FEBRUARY FIFTEENTH NINETEEN NINETY SIX AT ISSUE AND FIXED REOFFER PRICE PAR VIA SWISS BANK CORPORATION INTEREST PAID QUARTERLY AT THREE MONTH LONDON INTERBANK OFFERED RATE PLUS ZERO POINT SEVEN FIVE INTEREST ACCRUES ONLY ON DAYS WHEN THE THREE MONTH LIBOR RATE FALLS WITHIN FOLLOWING RANGES TWO POINT FIVE PERCENT TO FOUR PERCENT FOR FIRST SIX MONTHS TWO POINT FIVE PERCENT TO FOUR POINT SEVEN FIVE PERCENT IN SECOND SIX MONTHS TWO POINT FIVE PERCENT TO FIVE POINT FIVE PERCENT IN THIRD SIX MONTHS TWO POINT FIVE PERCENT TO SIX PERCENT IN LAST SIX MONTHS FEES ZERO POINT ONE FIVE FRANKFURTER HYPOTHEKEN BANK A. G. GERMANY ONE HUNDRED TWENTY FIVE MILLION MARKS OF FIXED AND FLOATING RATE BONDS THAT QUALIFY AS OEFFENTLICHER PFANDBRIEF R. SIX HUNDRED FORTY TWO OR MORTGAGE BACKED BONDS DUE FEBRUARY SECOND TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT SEVEN VIA DEUTSCHE BANK A. G. BONDS SECURED ON MORTGAGES FROM FRANKFURTER HYPOTHEKEN BANK A. G. AND FOR FIRST TWO YEARS BONDS PAY INTEREST ANNUALLY WITH A FIVE POINT TWO FIVE PERCENT COUPON FOR YEARS THREE TO SIX INTEREST PAID SEMIANNUALLY FLAT AT LIBOR FOR YEARS SEVEN TO TEN COUPON FIXED AT SEVEN PERCENT AND INTEREST PAID ANNUALLY FEES TWO POINT THREE LONG TERM CREDIT BANK OF JAPAN LIMITED JAPAN FIFTY MILLION DOLLARS OF REVERSE COUPON FLOATING RATE EURONOTES DUE FEBRUARY EIGHTEENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT SIX VIA L. T. C. B. INTERNATIONAL LIMITED INTEREST PAID SEMIANNUALLY AT SIX MONTH LIBOR PLUS ZERO POINT FIVE POINT UNTIL FEBRUARY EIGHTEENTH NINETEEN NINETY SEVEN WHEN BONDS CALLABLE AT PAR THEREAFTER COUPON EIGHT PERCENT ANNUALLY FEES TWO NEDERLANDSE INVESTERINGSBANK VOOR ONTWIKKELINGSLANDEN DUTCH AGENCY TWO HUNDRED FIFTY MILLION DUTCH GUILDERS OF FIVE POINT SIX TWO FIVE PERCENT EUROBONDS DUE FEBRUARY ELEVENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT OH FIVE VIA A. B. N. AMRO BANK N. V. REOFFERED AT NINETY NINE POINT THREE TO YIELD FIVE POINT SEVEN TWO PERCENT A MARGIN OF TWELVE BASIS POINTS OVER COMPARABLE DUTCH STATE LOAN GUARANTOR NETHERLANDS FEES ONE OESTERREICHISCHE POSTSPARKASSE AUSTRIA ONE HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY FIFTEENTH NINETEEN NINETY SIX AT ISSUE AND FIXED REOFFER PRICE PAR VIA SWISS BANK CORPORATION INTEREST PAID QUARTERLY AT THREE MONTH LIBOR PLUS SEVENTY FIVE BASIS POINTS SUBJECT TO FOLLOWING RANGES FOR FIRST SIX MONTHS TWO POINT FIVE PERCENT TO FOUR PERCENT SECOND SIX MONTHS TWO POINT FIVE PERCENT TO FOUR POINT SEVEN FIVE PERCENT THIRD SIX MONTHS TWO POINT FIVE PERCENT TO FIVE POINT FIVE PERCENT AND LAST SIX MONTHS TWO POINT FIVE PERCENT TO SIX PERCENT GUARANTOR AUSTRIA FEES ZERO POINT ONE FIVE PIV INVESTMENT FINANCE CAYMAN LIMITED HONG KONG PARENT ONE HUNDRED SEVENTY FIVE MILLION DOLLARS OF CONVERTIBLE EUROBONDS DUE DECEMBER FIRST TWO THOUSAND AT ISSUE PRICE PAR VIA MORGAN STANLEY INTERNATIONAL AND PEREGRINE CAPITAL LIMITED COUPON INDICATED AT FOUR POINT FIVE PERCENT TO FIVE PERCENT SEMIANNUALLY CONVERTIBLE INTO ORDINARY SHARES OF PARENT COMPANY AT INDICATED PREMIUM OF EIGHTEEN PERCENT TO TWENTY TWO PERCENT WEDNESDAY'S CLOSING SHARE PRICE EIGHTEEN POINT SEVEN OH HONG KONG DOLLARS FINAL TERMS FIXED NEXT WEEK CALLABLE AT PAR PLUS ACCRUED INTEREST DURING FIRST THREE YEARS IF SHARE PRICE EXCEEDS ONE HUNDRED FIFTY PERCENT OF CONVERSION PRICE FOR THIRTY CONSECUTIVE DAYS CALLABLE AFTER THREE YEARS AT PAR PLUS ACCRUED INTEREST GUARANTOR AND PARENT PEREGRINE INVESTMENTS HOLDINGS LIMITED FEES TWO POINT FIVE RABOBANK NEDERLAND NETHERLANDS SEVENTY FIVE MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY TWENTY THIRD NINETEEN NINETY FIVE AT ISSUE AND FIXED REOFFER PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL LIMITED BONDS PAY INTEREST AT FOUR POINT FIVE PERCENT TIMES RANGE FACTOR SEMIANNUALLY RANGE FACTOR IS NUMBER OF DAYS THAT THREE MONTH LIBOR IS WITHIN RANGE DURING THE COUPON PERIOD DIVIDED BY UMBER OF DAYS IN COUPON PERIOD LIBOR RANGES ARE ZERO TO FOUR PERCENT IN FIRST SIX MONTHS AND ZERO TO FOUR POINT FIVE PERCENT IN SECOND SIX MONTHS FEES ZERO POINT ONE REMY COINTREAU S. A. FRANCE SEVEN HUNDRED MILLION FRENCH FRANCS OF FIVE POINT EIGHT SEVEN FIVE PERCENT EUROBONDS DUE FEBRUARY FIFTEENTH NINETEEN NINETY NINE AT ISSUE AND FIXED REOFFER PRICE NINETY NINE POINT FIVE SIX VIA CREDIT LYONNAIS BONDS PRICED TO YIELD FIVE POINT NINE EIGHT PERCENT A MARGIN OF EIGHTY FIVE BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES ZERO POINT THREE TWO FIVE SAMSUNG ELECTRO MECHANICS COMPANY KOREA SEVENTY MILLION SWISS FRANCS OF ZERO POINT TWO FIVE PERCENT PRIVATELY PLACED CONVERTIBLE NOTES DUE DECEMBER THIRTY FIRST TWO THOUSAND AND REPAYABLE IN U. S. DOLLARS AT ISSUE PRICE PAR VIA UNION BANK OF SWITZERLAND EACH NOTE CONVERTIBLE FROM FEBRUARY TWENTY EIGHTH TO NOVEMBER THIRTIETH TWO THOUSAND AT APPROXIMATE PREMIUM OF THIRTY THREE PERCENT OVER CLOSING SHARE PRICE TERMS FIXED JANUARY NINETEENTH FEES TWO SOUTH AUSTRALIAN FINANCING AUTHORITY AUSTRALIAN AGENCY TWO HUNDRED FIFTY MILLION AUSTRALIAN DOLLARS OF SIX POINT TWO FIVE PERCENT EUROBONDS DUE FEBRUARY TWENTY FIFTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED POINT NINE FIVE VIA HAMBROS BANK LIMITED BONDS PRICED TO YIELD SIX POINT FOUR SEVEN PERCENT AT NINETY NINE POINT OH SEVEN FIVE BREAKEVEN PRICE FOR CO MANAGERS GUARANTOR TREASURER OF SOUTH AUSTRALIA FEES TWO SWEDISH EXPORT CREDIT LIMITED SWEDISH AGENCY TWO POINT FIVE BILLION SWEDISH KRONOR OF SIX POINT FIVE PERCENT GLOBAL BONDS DUE JUNE FIFTH TWO THOUSAND ONE AT ISSUE AND FIXED REOFFER PRICE NINETY NINE POINT THREE FIVE NINE VIA MERRILL LYNCH INTERNATIONAL LIMITED AT FIXED REOFFER PRICE BONDS YIELD A MARGIN OF ELEVEN BASIS POINTS OVER COMPARABLE SWEDISH GOVERNMENT BOND FEES ZERO POINT FIVE U. B. S. FINANCE N. V. SWISS PARENT ONE HUNDRED FIFTY MILLION DOLLARS OF CORRIDOR FLOATING RATE EURONOTES DUE FEBRUARY NINETEEN NINETY SIX AT ISSUE AND FIXED REOFFER PRICE PAR VIA U. B. S. LIMITED COUPON IS ONE POINT OVER THE THREE MONTH LIBOR AND INTEREST IS PAID ONLY ON DAYS WHEN LIBOR FALLS WITHIN FOLLOWING RANGES FOR MONTHS ONE TO SIX THREE PERCENT TO FOUR PERCENT MONTHS SEVEN TO TWELVE THREE POINT TWO FIVE PERCENT TO FOUR POINT FIVE PERCENT MONTHS THIRTEEN TO EIGHTEEN THREE POINT FIVE PERCENT TO FIVE POINT FIVE PERCENT MONTHS NINETEEN TO TWENTY FOUR THREE POINT FIVE PERCENT TO SIX PERCENT GUARANTOR UNION BANK OF SWITZERLAND FEES ZERO POINT ONE FIVE INTEREST PAYABLE QUARTERLY WORLD BANK SUPRANATIONAL ONE HUNDRED MILLION DOLLARS OF LIBOR CORRIDOR FLOATING RATE NOTES DUE FEBRUARY TWENTY SECOND NINETEEN NINETY SIX AT ISSUE PRICE ONE HUNDRED POINT NINE SEVEN FIVE VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT PAR INTEREST ACCRUED DAILY AT THREE MONTH LIBOR FOR ACCRUAL DATE FALLS WITHIN RANGE OF THREE PERCENT TO FOUR PERCENT FOR FIRST THREE MONTHS WITH MAXIMUM RISING BY ZERO POINT TWO FIVE PERCENT EVERY THREE MONTHS TO SIX PERCENT FOR EIGHTH THREE MONTH PERIOD FROM FEBRUARY FIRST MORGAN STANLEY AND COMPANY INTERNATIONAL LIMITED WILL ASSUME ALL RESPONSIBILIES AND OBLIGATIONS OF MORGAN STANLEY INTERNATIONAL FEES ONE POINT ONE TWO FIVE INTEREST PAYABLE QUARTERLY WORLD BANK SUPRANATIONAL FIFTY BILLION YEN OF FLOATING RATE EURONOTES DUE FEBRUARY NINTH TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED SIX POINT FOUR VIA NIKKO EUROPE P. L. C. INTEREST PAID SEMIANNUALLY AT SIX MONTH LIBOR PLUS THIRTY BASIS POINTS FEES UNDISCLOSED THE SMALL FAMILY OWNED SKIING RESORT HERE SPORTS JUST ONE THOUSAND ONE HUNDRED ACRES OF SKI TRAILS MANY OF THEM SKIABLE ONLY BY EXPERTS IT HAS ANTIQUATED LIFTS AND VERY LITTLE CAPITAL AND IT'S JUST SIXTEEN MILES AS THE CROW FLIES FROM ASPEN WITH ITS FOUR MOUNTAINS TRENDY INTERNATIONAL REPUTATION AND THREE THOUSAND SEVEN HUNDRED ACRES OF SKIING BUT THANKS TO A PIONEERING SPIRIT AND AGGRESSIVE MARKETING CRESTED BUTTE MOUNTAIN RESORT IS DOING JUST FINE THE RESORT'S OWNERS HAVE BEEN QUOTE VERY GUTSY QUOTE SAYS JERRY JONES A SKI AREA CONSULTANT BASED IN VAIL COLORADO THEY'VE TAKEN RISKS AND BEEN AHEAD OF THEIR TIME IN AN INDUSTRY IN THE THROES OF CONSOLIDATION SMALL FAMILY OWNED RESORTS SUCH AS CRESTED BUTTE ARE ENDANGERED SPECIES BIG RESORT OPERATORS SUCH AS VAIL ASSOCIATES INCORPORATED ASPEN SKIING COMPANY S. K. I LIMITED AND RALSTON PURINA CORPORATION CONTINUE TO BUY UP RESORTS MEANWHILE MORE THAN TWO HUNDRED SMALL SKI AREAS OR ABOUT TWENTY FIVE PERCENT OF ALL AREAS HAVE CLOSED IN THE PAST DECADE AND INDUSTRY EXPERTS EXPECT THE TREND TO CONTINUE TEN YEARS AGO CRESTED BUTTE SEEMED AN IDEAL CANDIDATE FOR EXTINCTION IT WAS A LITTLE KNOWN SKI HILL WITH ONLY FOUR HUNDRED FIFTY ACRES OF ROUTINE SKI TRAILS AND AN ANNUAL DEFICIT OF TWO MILLION DOLLARS CRESTED BUTTE'S SURVIVAL SHOWS THAT EVEN A SMALL RESORT ON A SHOESTRING BUDGET CAN HIRE TALENTED PEOPLE AND CAPTURE NATIONAL ATTENTION WITH INNOVATIVE MARKETING GEORGIANS HOWARD BO CALLAWAY AND RALPH O. WALTON WHO ARE RELATED BY MARRIAGE BOUGHT CRESTED BUTTE IN NINETEEN SEVENTY AFTER BOTH WERE CHEWED OUT IN SEPARATE INCIDENTS BY ASPEN LIFT TICKET SALESPEOPLE THIS IS NO WAY TO RUN A RAILROAD MR. WALTON REMEMBERS THINKING SOON MR. WALTON HAD QUIT HIS JOB AT WESTINGHOUSE TO RUN CRESTED BUTTE WITH ADVICE FROM MR. CALLAWAY WHO ALREADY OWNED A GARDEN RESORT IN GEORGIA FOR THE NEXT FOURTEEN YEARS THE COMPANY LOST MONEY ON SKIING BUT SURVIVED THROUGH LAND SALES THEN IN NINETEEN EIGHTY FOUR LAND SALES PLUMMETED LOSSES MUSHROOMED TO ONE POINT FIVE MILLION DOLLARS AND MR. WALTON NEEDED SOLUTIONS FIRST HE HIRED A PROFESSIONAL MANAGER FOR THE RESORT TURNING TO MR. CALLAWAY'S SON EDWARD A MCKINSEY AND COMPANY CONSULTANT THEN STUDYING A REPORT ABOUT SIMILAR PROBLEMS AT SUN VALLEY SKI RESORT IN IDAHO HE ZEROED IN ON CRESTED BUTTE'S BIGGEST SHORTCOMING ACCESS CRESTED BUTTE WASN'T LIKELY TO MAKE A FORTUNE OFF SURROUNDING GUNNISON COUNTY A RUGGED RANCHING AND MINING AREA WITH ONLY TEN THOUSAND RESIDENTS AND THE REMOTE RESORT IS A FIVE HOUR DRIVE FROM DENVER SO IN MID NINETEEN EIGHTY FIVE CRESTED BUTTE WENT TO AMERICAN AIRLINES AND BEGGED FOR DIRECT AIR SERVICE FROM MAJOR CITIES TO GET IT THE RESORT HAD TO GUARANTEE AMERICAN A FIFTEEN PERCENT PROFIT WE WERE CONFIDENT SAYS EDWARD CALLAWAY WE WERE ALSO WRONG BY JANUARY NINETEEN EIGHTY SIX AMERICAN WAS LOSING MONEY ON THE FLIGHTS MR. CALLAWAY PROMPTLY CANCELED MONEY LOSING ROUTES FROM LOS ANGELES AND HOUSTON EVEN THOUGH HIS WIFE AND CHILDREN WERE BOOKED ON ONE OF THEM THAT DAY TO FILL FLIGHTS FROM DALLAS AND CHICAGO HE SENT A LETTER TO PAST CUSTOMERS THERE THAT STARTED QUOTE HELP QUOTE THE LETTER OFFERED ONE WEEK PACKAGES WITH AIRFARE LODGING AND LIFT TICKETS FOR ONLY ONE HUNDRED NINETY NINE DOLLARS MOST OF THE MONEY WENT DIRECTLY TO THE AIRLINE FOR THE SEATS BUT THE OFFER BROUGHT IN ENOUGH RESPONSES A TEN PERCENT ACCEPTANCE RATE TO KEEP AMERICAN INTERESTED IN FLIGHTS FOR THE NEXT SEASON THAT FIRST YEAR THE RESORT LOST ABOUT ONE MILLION DOLLARS ON THE FLIGHT GUARANTEES INCREASING THE RESORT'S TOTAL LOSSES TO ABOUT TWO MILLION DOLLARS BUT IT PLUNGED AHEAD SIGNING UP WITH AMERICAN FOR ANOTHER YEAR IN THE MEANTIME MR. CALLAWAY CREATED A SYSTEM TO TRACK RESERVATIONS FOR TWELVE DIFFERENT PERIODS OF THE YEAR IN SIXTY FOUR SEPARATE MARKETS IF RESERVATIONS FROM TULSA FOR THE WEEK BEFORE CHRISTMAS FELL BELOW EXPECTATIONS A PROMOTION COULD BE TARGETED AT TULSA SKIERS THROUGH DIRECT MAIL AND RADIO ADS IF SALES WERE UP THE RESORT COULD RAISE PACKAGE PRICES IN THAT MARKET MR. CALLAWAY ALSO STRENGTHENED THE RESORT'S MARKETING EFFORTS BY HIRING JOHN NORTON AN OLD SCHOOL BUDDY AWAY FROM PROCTOR AND GAMBLE TO RUN MARKETING FORMING A GROUP SALES UNIT AND SENDING SALESMEN TO TALK TO TRAVEL AGENCIES THE NEW MARKETING EFFORT FOCUSED ON CRESTED BUTTE'S FUNKY CHARACTER AND REAL WESTERN SETTING HEAVEN FORBID WE SHOULD EVER BECOME LIKE ASPEN OR VAIL THE ADS SAID AND CRESTED BUTTE WHAT ASPEN USED TO BE AND VAIL NEVER WAS BUT LACK OF CAPITAL STILL STRAINED THE RESORT'S ABILITY TO ATTRACT NEW SKIERS WHILE VAIL ASPEN AND KEYSTONE OPENED THEIR SEASONS BRAGGING ABOUT NEW LIFTS NEW RESTAURANTS AND NEW TERRAIN BOB GILLEN CRESTED BUTTE'S NEW PUBLIC RELATIONS DIRECTOR SAYS HE HAD NOTHING TO TALK ABOUT BUT A NEW HOBART CHEESE SLICER FOR THE KITCHEN IN NINETEEN EIGHTY SEVEN HE WENT TO EDWARD CALLAWAY AND BEGGED FOR NEW TERRAIN THE ONLY LAND AVAILABLE HAD SEVERE ROCKY SLOPES THAT WERE CLASSIFIED AS EXTREME AND COULD BE NAVIGATED BY ONLY ABOUT TEN PERCENT OF SKIERS BUT MR. GILLEN OFFERED TO USE HIS OWN MARKETING BUDGET TO PAY FOR A NEW CHEAP TO BUILD SURFACE LIFT FOR THE NEW FOUR HUNDRED ACRE AREA AND HE GOT IT THE NEW TERRAIN GAVE THE RESORT CACHET HUGE SIGNS WERE PUT UP WARNING OF THE SLOPE'S TOUGHNESS IN FIVE LANGUAGES NEW ADS COMPARED CRESTED BUTTE'S HUGE EXTREME TERRITORY WITH MUCH SMALLER EXTREME OFFERINGS AT ASPEN SNOWMASS AND VAIL ADDING A NOTATION THAT ASPEN'S AREAS ALL HAD EXTREME PRICING BY THE NINETEEN EIGHTY EIGHT TO EIGHTY NINE SEASON THE RESORT WAS MAKING A TWO HUNDRED FIFTY THOUSAND DOLLAR PROFIT AND BY NINETEEN NINETY TO NINETY ONE THE PROFIT WAS ONE POINT THREE MILLION DOLLARS BUT CRESTED BUTTE WAS STILL LOSING MONEY BETWEEN THANKSGIVING AND CHRISTMAS SO MR. NORTON MADE AN UNUSUAL OFFER FREE SKIING BETWEEN THE HOLIDAYS IF LODGING AND RESTAURANT OWNERS IN CRESTED BUTTE WOULD VOLUNTARILY GIVE THE RESORT SOME REVENUE FROM CUSTOMERS WHO CAME TO SKI FREE THE SKI AREA MIGHT COME OUT AHEAD MANAGEMENT REASONED SKIERS RESPONDED IN DROVES LODGING FROM THANKSGIVING WEEKEND TO CHRISTMAS IS NOW BOOKED SOLID WITH NINE THOUSAND SKIERS JAMMING SLOPES DESIGNED FOR ABOUT SIX THOUSAND FIVE HUNDRED ON THE BUSIEST DAYS THE RESORT NO LONGER LOSES MONEY THROUGH THE PERIOD AND OVERALL IT MADE ABOUT ONE POINT FIVE MILLION DOLLARS IN THE NINETEEN NINETY TWO TO NINETEEN NINETY THREE SEASON MOREOVER SAYS STEPHEN SCOTT THE MARKETING VICE PRESIDENT THE PROGRAM HAS INCREASED AWARENESS OF CRESTED BUTTE AMONG SKIERS TO NINETY PERCENT FROM TEN PERCENT ACCORDING TO THE RESORT'S SURVEYS THE PROGRAM HAS ALSO HELPED PAY FOR A NEW FOUR PERSON CHAIRLIFT THE FIRST OF THREE OR FOUR NEW LIFTS THE RESORT HAS PLANNED QUOTE WE'LL HAVE A MODERN MOUNTAIN IN TWO YEARS QUOTE MR. CALLAWAY PROMISES NOW IN SPITE OF ITS SIZE CRESTED BUTTE HAS BECOME ONE OF THE NATION'S MOST COPIED SKI RESORTS SAYS MR. JONES THE CONSULTANT JACKSON HOLE AND STEAMBOAT MIMICKED ITS AIRLINE GUARANTEE PROGRAM SEVERAL RESORTS ADDED EXTREME TERRITORY MUCH OF IT RATHER SEDATE COMPARED WITH CRESTED BUTTE'S AND WHILE SKI FREE ISN'T CATCHING ON SEVERAL RESORTS NOW OFFER HALF PRICE TICKETS FROM THANKSGIVING TO CHRISTMAS MEANWHILE CRESTED BUTTE'S NEW PUSH WILL IMPROVE SERVICE MR. CALLAWAY SAYS HE PLANS TO USE NEW CARD BASED LIFT TICKET TECHNOLOGY TO TRACK CUSTOMERS AS THEY SKI CHECK INTO THEIR ROOMS AND BUY DINNER THAT WILL LEAD TO THE KIND OF SERVICE ONLY A SMALL AREA CAN GIVE HE SAYS WE HAVE TO SURVIVE AS A NICHE PLAYER EXPLAINS MR. SCOTT THE MARKETING VICE PRESIDENT WITH THE MERGERS THE BIG ARE GETTING BIGGER WE CAN MARKET OURSELVES AGAINST THE SIZE OF THEIR RESORTS MATHSOFT INCORPORATED WILL POST A WIDER THAN EXPECTED LOSS ON A FOURTEEN PERCENT INCREASE IN SALES FOR ITS SECOND QUARTER ENDED DECEMBER THIRTIETH ACCORDING TO PRESIDENT DAVID A. BLOHM MR. BLOHM ALSO GAVE DETAILS ABOUT MAJOR PRODUCT AND PRICING CHANGES AND SAID THAT THE CAMBRIDGE MASSACHUSETTS SOFTWARE MAKER IS QUOTE EXAMINING COSTS IN EVERY AREA OF THE BUSINESS QUOTE TO RESTORE PROFITABILITY MATHSOFT WILL REPORT A LOSS OF ABOUT ONE POINT SEVEN MILLION DOLLARS OR TWENTY FOUR CENTS TO TWENTY SIX CENTS A SHARE COMPARED WITH YEAR EARLIER NET INCOME OF THREE HUNDRED SEVENTEEN THOUSAND DOLLARS OR FIVE CENTS A SHARE ON FEWER SHARES ANALYSTS HAD EXPECTED A SECOND QUARTER LOSS OF SIXTEEN CENTS TO SEVENTEEN CENTS A SHARE REVENUE CLIMBED TO ABOUT SIX POINT FOUR MILLION DOLLARS FROM FIVE POINT SIX MILLION DOLLARS IN THE YEAR EARLIER PERIOD MR. BLOHM SAID THE RISE MAY DISAPPOINT INVESTORS WHO'VE BEEN ACCUSTOMED TO SHARPLY HIGHER GROWTH RATES RECENTLY MATHSOFT'S CORE PRODUCT IS MATHCAD A POWERFUL SOFTWARE PROGRAM FOR ENGINEERS SCIENTISTS AND STUDENTS ROME PROSECUTORS HAVE QUESTIONED FORMER PRIME MINISTER GIULIANO AMATO IN AN INVESTIGATION INTO FIAT COMPANY'S NINETEEN EIGHTY SEVEN ACQUISITION OF ALFA ROMEO FROM FINMECCANICA COMPANY ACCORDING TO ITALIAN NEWS REPORTS PROSECUTORS ARE LOOKING INTO WHETHER POLITICIANS MAY HAVE UNFAIRLY FAVORED THE FIAT BID OVER FORD MOTOR COMPANY'S RIVAL BID FORMER PRIME MINISTER BETTINO CRAXI WHO WAS PRIME MINISTER AT THE TIME OF THE ALFA ROMEO SALE WAS ALSO QUESTIONED BY ROME MAGISTRATES LAST WEEK THE NEWS REPORTS SAID MR. AMATO WAS A SENIOR OFFICIAL IN MR. CRAXI'S GOVERNMENT REPRESENTATIVES OF ONE AUTO WORKERS' UNION RECENTLY ALLEGED THAT FORD'S NINETEEN EIGHTY SIX OFFER WAS MORE FAVORABLE BUT THAT FIAT WAS CHOSEN INSTEAD IN A POLITICAL DEAL ALFA ROMEO IS INVOLVED IN LABOR NEGOTIATIONS OVER LAYOFFS AND WORKERS HAVE TAKEN TO THE STREETS IN PROTEST MR. AMATO REPORTEDLY TOLD PROSECUTORS THAT THE ALFA ROMEO BIDS WEREN'T DISCUSSED BY THE CABINET ACCORDING TO REPORTS PROSECUTORS HAVE ASKED THE COURT FOR PERMISSION TO QUESTION FORD EXECUTIVES MICHIGAN NATIONAL CORPORATION REPORTED NET INCOME FOR THE FOURTH QUARTER OF THIRTY TWO POINT SIX MILLION DOLLARS OR TWO DOLLARS AND THIRTEEN CENTS A SHARE AND ANNOUNCED A COST CUTTING DRIVE THAT INCLUDES SHUTTING BANK BRANCHES AND ELIMINATING JOBS THE BANK HOLDING CONCERN'S PROFIT INCLUDED A SEVEN POINT EIGHT MILLION DOLLAR GAIN FROM THE SALE OF MORTGAGE SERVICING RIGHTS A YEAR EARLIER IT EARNED ELEVEN POINT NINE MILLION DOLLARS OR SEVENTY EIGHT CENTS A SHARE QUOTE WE'VE GOT A COST BASE HERE WE CAN'T AFFORD AND WE'VE GOT TO CHANGE IT QUOTE SAID DOUGLAS E. EBERT MICHIGAN NATIONAL'S PRESIDENT AND CHIEF OPERATING OFFICER THE CONCERN BASED IN FARMINGTON HILLS MICHIGAN PLANS TO REDUCE ITS OPERATING EXPENSES BY TWENTY MILLION DOLLARS THIS YEAR IT WILL ELIMINATE EIGHTY JOBS AND CLOSE ABOUT TWELVE BANK BRANCHES IN MICHIGAN IT WILL ALSO DECIDE WHETHER TO SHED OPERATIONS IN CALIFORNIA AND TEXAS SAID ROBERT J. MYLOD CHAIRMAN AND CHIEF EXECUTIVE OFFICER FOR THE FULL YEAR NET FELL TO TWENTY THREE POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND FIFTY SIX CENTS A SHARE FROM FIFTY NINE POINT EIGHT MILLION DOLLARS OR THREE DOLLARS AND NINETY SIX CENTS A SHARE A YEAR EARLIER CALIFORNIA DISASTER AUTHORITIES SAID DAMAGES FROM MONDAY'S EARTHQUAKE QUOTE CONSERVATIVELY QUOTE COULD RANGE FROM FIFTEEN BILLION DOLLARS TO THIRTY BILLION DOLLARS AN ESTIMATE FAR HIGHER THAN MOST EXPERTS HAD SUGGESTED IF DAMAGES REACH THE HIGHER END OF THE FIRST OFFICIAL ESTIMATE FROM GOVERNOR PETE WILSON'S OFFICE THEY WOULD APPROACH THE THIRTY BILLION DOLLAR COST OF HURRICANE ANDREW THE NINETEEN NINETY TWO DISASTER IN FLORIDA AND LOUISIANA THAT RANKS AS THE NATION'S COSTLIEST SO FAR THE STAGGERING CALIFORNIA ESTIMATE COMING EVEN AS A SENSE OF NORMALCY BEGAN TO RETURN DESPITE THE CONTINUING AFTERSHOCKS HERE WAS CONTAINED IN AN APPEAL BY GOVERNOR WILSON TO PRESIDENT CLINTON THE PRESIDENT TOURED THE QUAKE HIT REGION YESTERDAY AND CONDUCTED A TOWN MEETING IN BURBANK JUST SOUTHEAST OF THE TEMBLOR'S NORTHRIDGE EPICENTER IN THE SAN FERNANDO VALLEY AT THE MEETING PRESIDENT CLINTON ANNOUNCED ONE HUNDRED FORTY MILLION DOLLARS IN FEDERAL FUNDS AS THE FIRST INSTALLMENT OF RELIEF MONEY THIS INCLUDED FORTY FIVE MILLION DOLLARS TO CLEAN UP DEBRIS FILLED STREETS AND START REPAIRS AND NINETY FIVE MILLION DOLLARS IN LOANS TO SMALL BUSINESSES DAMAGED BY THE EARTHQUAKE BUT THE PRESIDENT WARNED THAT KEY WAIVERS OF REQUIREMENTS FOR LOCAL MATCHING FUNDS COULDN'T BE DECIDED UNTIL BETTER DAMAGE COST ESTIMATES WERE AVAILABLE HOUSING SECRETARY HENRY CISNEROS CAUTIONED THAT IT SEEMS TO US THAT THE CRESTING OF THE HOUSING PROBLEM IS STILL AHEAD PRELIMINARY ESTIMATES INDICATED THAT MORE THAN FOUR THOUSAND DWELLINGS WERE DAMAGED OR DESTROYED PRESIDENT CLINTON HAD THIS PROMISE FOR QUAKE VICTIMS WE WILL STAY WITH YOU UNTIL THIS JOB IS FINISHED THE QUAKE WHICH MEASURED SIX POINT SIX ON THE RICHTER SCALE WAS THE WORST DISASTER IN LOS ANGELES HISTORY BASED ON CASUALTIES WHICH TOTALED MORE THAN FOUR THOUSAND THREE HUNDRED DEAD AND INJURED LOCAL AUTHORITIES SAID THE DEATH TOLL YESTERDAY ROSE TO FORTY SIX STILL BELOW THE FIFTY EIGHT KILLED IN THE NINETEEN SEVENTY ONE QUAKE IN SYLMAR JUST NORTHEAST OF NORTHRIDGE ABOUT FIFTY TWO THOUSAND INDIVIDUALS AND BUSINESSES STILL WERE WITHOUT ELECTRICITY YESTERDAY WITH FORTY THOUSAND LACKING WATER AND THIRTY FIVE THOUSAND LACKING NATURAL GAS THE STATE DAMAGE ESTIMATE WAS BASED ON A COMPUTER MODEL DEVISED BY EQE INTERNATIONAL INCORPORATED A SAN FRANCISCO CONSULTING FIRM EQE IN A SEPARATE STATEMENT ESTIMATED OVERALL DAMAGES AT FIFTEEN POINT ONE BILLION DOLLARS THE LOWER END OF THE STATE'S RANGE OF THE TOTAL RESIDENTIAL DAMAGE WAS ESTIMATED TO BE FIVE POINT EIGHT BILLION DOLLARS WITH COMMERCIAL DAMAGE THREE POINT SEVEN BILLION DOLLARS INDUSTRIAL DAMAGE ONE POINT FIVE BILLION DOLLARS AND THE REST IN OTHER DAMAGES EQE SAID IT ESTIMATED INSURED LOSSES AT ONE POINT FIVE BILLION DOLLARS TO ONE POINT NINE BILLION DOLLARS KEVIN ECKERY THE GOVERNOR'S DEPUTY PRESS SECRETARY SAID THE UPPER END OF THE RANGE CAME FROM THE STATE OFFICE OF EMERGENCY SERVICES WHICH HAS LONG EXPERIENCE IN CALCULATING DISASTER COSTS HE SAID THE RANGE IS A VERY VERY ROUGH ESTIMATE EQE'S MODEL RELIES ON SUCH FACTORS AS KNOWN FAULT LINES AND THE SEISMIC HISTORY OF THE REGION BUT DOESN'T REFLECT ACTUAL INSPECTION OF THE DEVASTATED AREA IN HIS PLEA GOVERNOR WILSON ASKED PRESIDENT CLINTON TO FOLLOW THE PRECEDENT ESTABLISHED AFTER HURRICANE ANDREW AND HAWAII'S NINETEEN NINETY TWO HURRICANE INIKI IN THOSE DISASTERS HE SAID ONE HUNDRED PERCENT OF THE PUBLIC ASSISTANCE COSTS WERE COVERED BY FEDERAL DISASTER AID WITHOUT FULL FUNDING STATE AND LOCAL GOVERNMENTS WOULD BE REQUIRED TO PAY TWENTY FIVE PERCENT OF THE COSTS LOS ANGELES AREA COMMUTERS YESTERDAY STRUGGLED TO GET TO WORK AS MOST LARGE BUSINESSES OPENED FOR THE FIRST TIME SINCE THE QUAKE WITH SIX MAJOR BREAKS IN THE AREA'S SPRAWLING FREEWAY SYSTEM MANY DRIVERS WERE FORCED TO USE CAR POOLS TRAINS OR BUSES ONE MAN SAID A COMMUTE THAT LAST WEEK TOOK FORTY FIVE MINUTES YESTERDAY TOOK FOUR HOURS THE CITY'S NEW METROLINK TRAIN SERVICE CONNECTING AREAS NORTH OF THE QUAKE ZONE TO DOWNTOWN LOS ANGELES OPERATED AT CAPACITY EVEN AFTER ADDING FIVE CARS TO ITS USUAL THREE CAR TRAINS THE SUPERINTENDENT OF THE LOS ANGELES UNIFIED SCHOOL DISTRICT ANNOUNCED THAT SCHOOLS WILL REMAIN CLOSED THROUGH THE END OF THIS WEEK BUT DOZENS OF SCHOOLS IN THE SAN FERNANDO VALLEY MAY NOT REOPEN FOR SEVERAL WEEKS THE SUPERINTENDENT SAID AS SEISMOLOGISTS AND ENGINEERS REVIEWED UPDATED MEASUREMENTS OF THE QUAKE MANY WERE AMAZED AT THE VIOLENCE OF THE VERTICAL SHAKING OF AREA HIGHWAYS ACCORDING TO THE U. S. GEOLOGICAL SURVEY MEASUREMENTS OF STRESS ON ONE COLLAPSED OVERPASS NEAR THE EPICENTER REACHED AN INDICATED TWO POINT THREE TIMES THE FORCE OF GRAVITY EVEN MORE THAN FIFTEEN MILES TO THE SOUTH INSTRUMENTS EMBEDDED IN A PORTION OF THE SANTA MONICA FREEWAY MEASURED THE UPWARD ACCELERATION OF THE ROADBED AT ONE POINT EIGHT TIMES THE FORCE OF GRAVITY SUCH G. FORCES AS THEY ARE CALLED ARE COMPARABLE TO THE ACCELERATION EXPERIENCED BY FIGHTER PILOTS MAKING VIOLENT MANUEVERS THE VIOLENCE OF THE QUAKE COULD PROMPT MANY OWNERS OF PLANTS SHOPPING CENTERS AND OTHER COMMERCIAL BUILDINGS TO INVEST IN UPGRADING FACILITIES TO BETTER WITHSTAND SUCH FORCES SINCE EARTHQUAKE INSURANCE RATES ARE EXPECTED TO CONTINUE TO RISE SOME BUSINESSES MAY FIND SUCH LONG TERM INVESTMENTS MORE ECONOMICAL SMITH CORONA CORPORATION SAID EARNINGS DECLINED SIXTY THREE PERCENT IN THE FISCAL SECOND QUARTER TO ONE POINT FIVE MILLION DOLLARS OR FIVE CENTS A SHARE FROM FOUR MILLION DOLLARS OR THIRTEEN CENTS A SHARE REVENUE IN THE QUARTER WHICH ENDED DECEMBER THIRTY FIRST ROSE EIGHT PERCENT THE COMPANY SAID THE COMPANY'S STOCK PRICE TUMBLED SIXTY TWO POINT FIVE CENTS OR NINE POINT SIX PERCENT TO CLOSE AT FIVE POINT EIGHT SEVEN FIVE DOLLARS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY SMITH CORONA THE NEW CANAAN CONNECTICUT MANUFACTURER OF TYPEWRITERS AND PERSONAL WORD PROCESSORS SAID INCREASED PRESSURE ON WHOLESALE SELLING PRICES AND UNFAVORABLE FOREIGN CURRENCY EXCHANGE CONTRIBUTED TO THE DECLINE IN PROFIT EVEN THOUGH SALES AND UNIT SHIPMENTS WERE UP FROM THE PREVIOUS YEAR SALES WERE NINETY THREE POINT SIX MILLION DOLLARS COMPARED WITH EIGHTY SIX POINT SEVEN MILLION DOLLARS A YEAR EARLIER THE COMPANY SAID IT WILL RELOCATE ITS MANUFACTURING OPERATIONS FROM CORTLAND N. Y. TO MEXICO BY THE END OF MARCH BUT IT DOESN'T EXPECT TO REALIZE COST SAVINGS DURING THIS FISCAL YEAR ENDING IN JUNE IN AN EARLY SIGN OF CONGRESSIONAL DISCONTENT WITH PRESIDENT CLINTON'S RUSSIA POLICY TWO KEY SENATORS ARE CRITICIZING THE ADMINISTRATION'S MANAGEMENT OF THE MULTIBILLION DOLLAR RUSSIAN AID PROGRAM IN A LATE DECEMBER LETTER TO SECRETARY OF STATE WARREN CHRISTOPHER SENATOR PATRICK LEAHY D. VERMONT CHAIRMAN OF THE SENATE FOREIGN OPERATIONS SUBCOMMITTEE AND THE PANEL'S RANKING REPUBLICAN KENTUCKY SENATOR MITCH MCCONNELL CHARGED THAT THE AID PROGRAM LACKS QUOTE A COHERENT STRATEGY OR CONCEPTUAL FRAMEWORK QUOTE AND THEY CALLED ON THE ADMINISTRATION TO MAKE NO NEW COMMITMENTS OF FUNDS UNTIL IT DEFENDS THE PROGRAM IN HEARINGS SCHEDULED FOR EARLY NEXT WEEK THE HEARINGS ARE ALSO EXPECTED TO RAISE QUESTIONS ABOUT THE WORKINGS OF SPECIFIC AID PROJECTS SENATOR MCCONNELL HAS PRIVATELY CHARGED THAT ONE A ONE HUNDRED NINETY MILLION DOLLAR HOUSINGRESETTLEMENT PROGRAM FOR RUSSIAN MILITARY OFFICERS REFLECTED POTENTIALLY ILLEGAL ACTIONS IN AN EARLIER LETTER TO SENATOR LEAHY MR. MCCONNELL CHARGED THAT ADMINISTRATION AIDES TOLD THE SUBCOMMITTEE THAT THEY PLANNED TO GO ALONG WITH THE DEMANDS OF RUSSIAN MUNICIPAL OFFICIALS IN EIGHT CITIES THAT A PERCENTAGE OF ALL HOUSES BUILT FOR OFFICERS RETURNING FROM THE BALTIC REPUBLICS BE GIVEN TO THEIR OWN POLITICAL CRONIES OR CONSTITUENTS SOME MIGHT ARGUE THIS AMOUNTS TO EXTORTION MR. MCCONNELL WROTE IN THE LETTER PRESIDENT CLINTON ACCORDING TO AIDES RAISED THE ISSUE IN HIS RECENT SUMMIT MEETING WITH RUSSIAN PRESIDENT BORIS YELTSIN THE SENATORS ARE ALSO EXPECTED TO QUESTION WHY A HALF DOZEN HIGH POWERED U. S. CONSULTING FIRMS ARE GETTING THE LION'S SHARE OF TECHNICAL ASSISTANCE CONTRACTS VALUED AT MILLIONS OF DOLLARS UNTIL NOW THE ADMINISTRATION'S REQUESTS FOR RUSSIAN AID HAVE BREEZED THROUGH CONGRESS THESE QUESTIONS COME AT A PARTICULARLY TOUGH TIME FOR THE ADMINISTRATION AND STROBE TALBOTT WHO IS MR. CLINTON'S TOP ADVISER ON RUSSIAN AFFAIRS AND WAS RECENTLY NOMINATED TO THE NUMBER TWO JOB AT THE STATE DEPARTMENT MR. TALBOTT HAS BEEN CRITICIZED FOR FAILING TO PREDICT THE STRONG SHOWING OF RUSSIAN FASCISTS AND COMMUNISTS IN LAST MONTH'S PARLIAMENTARY ELECTIONS AND ANY PERCEIVED PROBLEMS WITH THE RUSSIAN AID PROGRAM COULD CLOUD HIS CONFIRMATION HEARINGS THE FOREIGN OPERATIONS SUBCOMMITTEE IS ONE OF FOUR CONGRESSIONAL COMMITTEES THAT MUST SIGN OFF ON SPECIFIC AID PROJECTS BEFORE ANY MONEY IS COMMITTED THE FOUR COMMITTEES HAVE ALREADY CLEARED ABOUT ONE BILLION DOLLARS IN NEW BILATERAL AID PROJECTS OF A TOTAL TWO POINT FIVE BILLION DOLLARS PREVIOUSLY APPROPRIATED FOR RUSSIA AND THE FORMER SOVIET UNION IN FISCAL NINETEEN NINETY FOUR THE SUBCOMMITTEE'S OBJECTIONS AREN'T EXPECTED TO SLOW DOWN ANY DISBURSEMENTS IN THEIR LETTER HOWEVER SENATORS LEAHY AND MCCONNELL SUGGESTED THAT THEIR RECENT APPROVAL OF THE FIRST SET OF PROJECTS WAS GIVEN IN RECOGNITION OF THE URGENCY OF SOME OF THE PROGRAMS AS WELL AS OUR DESIRE NOT TO CAUSE DIFFICULTIES DURING MR. CLINTON'S SUMMIT MEETING RATHER THAN ANY SATISFACTION WITH THE DESIGN OR MANAGEMENT OF THE PROJECT MR. TALBOTT SAID HE WILL TRY TO CONVINCE THE SENATORS THAT THE POLICY IS POINTED IN THE RIGHT DIRECTION MR. TALBOTT AND MR. CHRISTOPHER HAVE SPENT SEVERAL HOURS THIS WEEK IN MEETINGS WITH SENATOR LEAHY TRYING TO HEAD OFF ANY CONFRONTATION AT THE HEARING MR. LEAHY SAID WE HAVEN'T RAISED THESE ISSUES TO BEAT UP ON ANYBODY I JUST WANT TO MAKE SURE THAT SOMEBODY'S GOT THE LONG TERM GOALS IN VIEW QUOTE PRESIDENT CLINTON'S STRONG PERSONAL COMMITMENT TO PRESIDENT YELTSIN MAY ALSO BE CRITICIZED AT THE HEARINGS MR. LEAHY IS ALSO EXPECTED TO URGE ADMINISTRATION OFFICIALS TO REFOCUS AID PROGRAMS TO TAKE INTO ACCOUNT THE RISING HUMAN COST TO ORDINARY RUSSIANS SQUEEZED BY ECONOMIC REFORMS ADMINISTRATION OFFICIALS AGREE THAT MORE EMPHASIS SHOULD BE PUT INTO CRAFTING A SOCIAL SAFETY NET IN RUSSIA BUT THEY INSIST THAT U. S. BILATERAL AID CANNOT PAY FOR SUCH A PROGRAM INSTEAD THE ADMINISTRATION IS LOBBYING STILL SKEPTICAL INTERNATIONAL LENDING AGENCIES TO COME UP WITH MORE SOCIAL SPENDING FOR RUSSIA COLUMBIA GAS SYSTEM INCORPORATED'S MAIN PIPELINE SUBSIDIARY FILED A LONG AWAITED REORGANIZATION PLAN BUT CREDITOR GROUPS INCLUDING CRUCIAL NATURAL GAS SUPPLIERS SAID THE PLAN FELL WOEFULLY SHORT OF THEIR DEMANDS UNDER THE CHAPTER ELEVEN REORGANIZATION PLAN FILED IN U. S. BANKRUPTCY COURT IN WILMINGTON DELAWARE COLUMBIA GAS SYSTEM'S MAIN PIPELINE UNIT COLUMBIA GAS TRANSMISSION CORPORATION IS PROPOSING TO PAY NINE HUNDRED MILLION DOLLARS TO SETTLE CLAIMS BY GAS SUPPLIERS THE COMPANY'S HUGE OBLIGATIONS FROM ABOVE MARKET PRICED GAS SUPPLY CONTRACTS DROVE IT TO MAKE THE CHAPTER ELEVEN FILING IN MID NINETEEN NINETY ONE TO FORCE A RENEGOTIATION OF THE CONTRACTS COLUMBIA GAS SAYS IT EXPECTS A COURT APPOINTED MEDIATOR WILL RECOMMEND VALUING THE CONTRACT CLAIMS AT ABOUT ONE POINT ONE THREE BILLION DOLLARS HOWEVER NATURAL GAS PRODUCERS INCLUDING SOME OF THE NATION'S LARGEST OIL AND GAS COMPANIES HAVE VALUED THE CLAIMS AT TEN BILLION DOLLARS TO THIRTEEN BILLION DOLLARS THUS COLUMBIA'S REORGANIZATION PROPOSAL IS FAR SHORT OF THEIR ESTIMATES AND IS LIKELY TO LEAD TO FURTHER LEGAL DELAYS IN RESOLVING THE CHAPTER ELEVEN PROCEEDING THE STOCK MARKET NONETHELESS VIEWED THE PROPOSAL POSITIVELY COLUMBIA GAS SHARES ROSE THREE POINT ONE TWO FIVE DOLLARS OR FOURTEEN PERCENT TO TWENTY SIX DOLLARS AND TWENTY FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING QUOTE THE PROPOSAL AS IT RELATES TO PRODUCERS IS SIMPLY NOT CLOSE TO REALITY QUOTE SAID JOHN AIREY AN ATTORNEY REPRESENTING A COMMITTEE COMPRISED OF HUNDREDS OF GAS PRODUCERS IN THE APPALACHIAN AREA WHO PUT THEIR CLAIMS AGAINST COLUMBIA AT MORE THAN SEVEN BILLION DOLLARS IT'S SIMPLY A CONTINUING EFFORT BY COLUMBIA TO NOT PAY THE VALUE OF THE CLAIMS IN ITS FILING COLUMBIA GAS TRANSMISSION PROPOSED PAYING ONE HUNDRED CENTS ON THE DOLLAR FOR ABOUT ONE POINT SEVEN FIVE BILLION DOLLARS IN SECURED CLAIMS AND INTEREST HELD BY THE PARENT COMPANY AND TWO POINT EIGHT MILLION DOLLARS IN TAX TO THE INTERNAL REVENUE SERVICE AMONG UNSECURED CREDITORS THE COMPANY PROPOSES PAYING NINE HUNDRED MILLION DOLLARS IN SETTLEMENT OF GAS SUPPLIER CONTRACTS PLUS ABOUT SIX HUNDRED FIFTY MILLION DOLLARS FOR OTHER UNSECURED CLAIMS INCLUDING THREE HUNDRED MILLION DOLLARS OWED TO THE PARENT THE THREE POINT THREE BILLION DOLLARS DISTRIBUTION IS BASED ON AN ESTIMATED VALUE FOR THE COMPANY OF THREE POINT ONE BILLION DOLLARS AS WELL AS A PROPOSAL BY THE PARENT TO INJECT TWO HUNDRED MILLION DOLLARS IN CASH OR STOCK INTO THE UNIT THE UNSECURED CREDITORS COMMITTEE WHICH ALSO OPPOSES THE PLAN WANTS ABOUT ONE POINT SEVEN FIVE BILLION DOLLARS IN DEBT OWED BY THE UNIT TO THE PARENT CONVERTED INTO EQUITY WHICH WOULD MAKE IT SUBORDINATE TO THE UNSECURED CREDITORS' DEBT THE COMMITTEE ALSO WANTS THE PARENT TO RETURN FIVE HUNDRED MILLION DOLLARS IN VARIOUS PAYMENTS MADE BY THE UNIT AND RETURN MILLIONS OF DOLLARS OF OIL AND GAS PROPERTIES WHICH HAD BEEN TRANSFERRED OUT OF COLUMBIA GAS TRANSMISSION ALTHOUGH THE PRODUCER CLAIMS HAVE BEEN THE KEY TO THE BANKRUPTCY LAW PROCEEDING THE UNSECURED CREDITORS CLAIMS HAVE PROVED A SERIOUS STICKING POINT COLUMBIA HAS PROPOSED TO SETTLE THEM FOR ABOUT TWO HUNDRED MILLION DOLLARS AND HAS ALSO AGREED TO DISCHARGE CERTAIN POTENTIALLY EXPENSIVE ENVIRONMENTAL CLAIMS THE FILING ASSUMES THE CHAPTER ELEVEN PROCEEDING WILL WIND UP JUNE THIRTIETH BUT COLUMBIA SAID THE ACTUAL DATE WILL DEPEND ON A NUMBER OF PENDING LEGAL STEPS AND REQUIRED APPROVALS REORGANIZATION EXPENSES ARE EXPECTED TO TOTAL ABOUT SIXTY SIX MILLION DOLLARS BY MID NINETEEN NINETY FOUR COLUMBIA SAID THE PARENT'S REORGANIZATION PLAN WILL BE FILED AT A LATER DATE AND THE COMPANIES EXPECT TO EMERGE FROM CHAPTER ELEVEN PROTECTION SIMULTANEOUSLY THE DOLLAR GAINED AGAINST THE YEN YESTERDAY AS PROMISING TRADE FIGURES AND A FRESH TRADE AGREEMENT KINDLED OPTIMISM THAT THE U. S. WOULD ACCEPT A SOFTER YEN IN RETURN FOR JAPAN OPENING ITS DOMESTIC MARKET TO U. S. PRODUCTS HOWEVER THE DOLLAR EASED AGAINST THE MARK AS TRADERS BET THAT THE BUNDESBANK WON'T CUT ITS KEY INTEREST RATES AT ITS POLICY MAKING MEETING TODAY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FOUR SIX OH MARKS OFF FROM ONE POINT SEVEN FOUR SIX FIVE MARKS LATE TUESDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED ELEVEN POINT THREE FIVE YEN UP FROM ONE HUNDRED TEN POINT SEVEN FIVE YEN STERLING WAS TRADING AT ONE POINT FOUR NINE TWO FIVE DOLLARS DOWN FROM ONE POINT FOUR NINE SIX OH DOLLARS ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED ELEVEN POINT FOUR THREE YEN AND AT ONE POINT SEVEN FOUR SIX SIX MARKS THE DOLLAR DROPPED IN ASIAN TRADING TO AN INTRADAY LOW OF ONE HUNDRED TEN POINT TWO EIGHT YEN FOLLOWING COMMENTS BY U. S. TREASURY SECRETARY LLOYD BENTSEN CRITICAL OF THE SLOW PACE OF U. S. JAPAN TRADE TALKS BUT THE U. S. CURRENCY THEN BEGAN TO TAKE OFF AFTER U. S. COMMERCE DEPARTMENT DATA SHOWED NOVEMBER'S TRADE GAP WITH JAPAN NARROWED TO FIVE POINT SEVEN TWO BILLION DOLLARS FROM SIX POINT OH NINE BILLION DOLLARS IN OCTOBER IN ADDITION THE OVERALL NOVEMBER MERCHANDISE TRADE DEFICIT WAS TEN POINT ONE SEVEN BILLION DOLLARS A CUT BENEATH THE MARKET FORECAST OF TEN POINT FIVE ONE BILLION DOLLARS TRADERS SAID THE DOLLAR GAINED MORE MUSCLE AFTER THE CLINTON ADMINISTRATION EXTOLLED A JAPANESE PLAN TO OPEN ITS CONSTRUCTION MARKET TO U. S. COMPANIES QUOTE THE GOVERNMENT OF JAPAN HAS ADDRESSED ALL THE MAJOR U. S. CONCERNS QUOTE SAID U. S. TRADE REPRESENTATIVE MICKEY KANTOR IN VOICING APPROVAL OF THE PACT THE STATEMENT PROVED NOTEWORTHY BECAUSE MUCH OF THE DOLLAR'S RECENT SLIDE AGAINST THE YEN WAS PREDICATED ON TOUGH U. S. TALK OVER THE STATE OF THE TRADE TALKS WHICH TRIGGERED FEARS THAT THE U. S. WOULD AGAIN PRESS FOR A STRONGER YEN AS A WAY TO NARROW THE TRADE GAP TRADERS TOOK FURTHER COMFORT ON REPORTS OF MR. BENTSEN'S SCHEDULED WEEKEND MEETING WITH JAPANESE FINANCE MINISTER HIROHISA FUJII AGREEING IT COULD EASE THE WAY FOR THE REMAINING UNRESOLVED TRADE ISSUES THE MARKET IS NOW BEGINNING TO REALIZE THAT THERE ARE SIGNS OF IMPROVING U. S. TRADE RELATIONS WITH JAPAN SAID RICH SHIMOKAWA VICE PRESIDENT FOREIGN EXCHANGE FOR SUMITOMO BANK LIMITED IN NEW YORK BUT MR. SHIMOKAWA ALSO NOTED PRESSURE STILL REMAINS FOR A COMPLETE RESOLUTION BY THE FEBRUARY ELEVENTH DEADLINE WHEN PRIME MINISTER MORIHIRO HOSOKAWA IS SCHEDULED TO VISIT THE U. S. FOR TALKS WITH PRESIDENT CLINTON THERE IS STILL TOO MUCH DISTANCE MR. SHIMOKAWA SAID THE CONSTRUCTION AGREEMENT SIGNIFIES PROGRESS BUT THE MAIN FOCUS SHOULD BE ON SEMICONDUCTORS AND CARS INDEED U. S. NEGOTIATORS DEMANDED THAT JAPAN TAKE EMERGENCY STEPS TO INCREASE FOREIGNERS' SHARE IN THE JAPANESE SEMICONDUCTOR MARKET ADDING THAT JAPAN IS FAILING TO MEET THE GOALS AGREED IN A NINETEEN NINETY ONE PACT BUT TOKYO SAID NO ACTION IS NECESSARY INSISTING THAT U. S. CHIP MAKERS ARE GENERALLY SATISFIED WITH THEIR ACCESS TO JAPAN TRADERS NEVERTHELESS SAW THE PROGRESS IN U. S. JAPAN TRADE ISSUES AS A REASON TO RETURN TO MORE BASIC MARKET FACTORS SUCH AS THE WEAKNESS OF JAPAN'S ECONOMY IN DETERMINING THE DOLLAR'S DIRECTION AGAINST THE YEN THE DOLLAR HAD BEEN IN A MEDIUM TERM UPTREND AGAINST THE YEN SAID WILLIAM ARNOLD CHIEF DEALER AT CHEMICAL BANK NOTING THE PROBLEMS FACING THE JAPANESE ECONOMY GERMANY'S THYSSEN STAHL A. G. REPORTED QUOTE CATASTROPHIC QUOTE RESULTS FOR ITS YEAR ENDED SEPTEMBER THIRTIETH BUT SAID IT WOULD RETURN TO PROFITABILITY IN TWO YEARS THE STEEL MAKING UNIT OF GERMAN INDUSTRIAL GROUP THYSSEN A. G. REPORTED A LOSS OF ONE POINT TWO THREE BILLION MARKS SEVEN HUNDRED FOUR POINT FOUR MILLION DOLLARS ITS LARGEST EVER AND FOUR TIMES THE PREVIOUS YEAR'S LOSS ONE CAN ONLY DESCRIBE THE RESULTS AS CATASTROPHIC SAID EKKEHARD SCHULZ THYSSEN STAHL'S CHAIRMAN THE GROUP ADJUSTED FISCAL NINETEEN NINETY TWO RESULTS FOLLOWING THE OCTOBER FIRST NINETEEN NINETY TWO MERGER OF THYSSEN STAHL AND SPECIALTY STEEL MANUFACTURER THYSSEN EDELSTAHL PLACING THE COMBINED LOSS AT THREE HUNDRED SIX MILLION MARKS ONE HUNDRED SEVENTY FIVE POINT TWO MILLION DOLLARS SALES IN THE RECENTLY ENDED YEAR DROPPED FIFTEEN PERCENT TO TEN POINT SIX BILLION MARKS FROM A YEAR EARLIER ADJUSTED TWELVE POINT FIVE BILLION MARKS REFLECTING BOTH LOWER PRICES AND LOWER VOLUME SALES THE UNIT SAID IN THE FIRST THREE MONTHS OF THE CURRENT FISCAL YEAR SALES DECLINED SEVEN PERCENT FROM YEAR EARLIER FIGURES TO TWO POINT FIVE BILLION MARKS AMERITECH CORPORATION SAID FOURTH QUARTER PROFIT JUMPED NINETEEN PERCENT FROM THE PRIOR YEAR PARTLY BECAUSE OF THE IMPROVING ECONOMY AND GROWING DEMAND FOR ITS SERVICES THE CHICAGO TELECOMMUNICATIONS COMPANY SAID NET INCOME ROSE TO THREE HUNDRED NINETY EIGHT POINT TWO MILLION DOLLARS OR SEVENTY THREE CENTS A SHARE FROM THREE HUNDRED THIRTY FIVE POINT FIVE MILLION DOLLARS OR SIXTY TWO CENTS A SHARE A YEAR EARLIER SALES ROSE SIX PERCENT TO THREE POINT OH TWO BILLION DOLLARS FOR THE YEAR NET WAS ONE POINT FIVE ONE BILLION DOLLARS OR TWO DOLLARS AND SEVENTY EIGHT CENTS A SHARE COMPARED WITH A PREVIOUS YEAR'S LOSS OF FOUR HUNDRED POINT FOUR MILLION DOLLARS OR SEVENTY FIVE CENTS A SHARE THE LOSS INCLUDED A ONE POINT SEVEN FIVE BILLION DOLLAR ACCOUNTING CHARGE FOR RETIREE HEALTH BENEFITS BOTH THE QUARTER AND YEAR PER SHARE EARNINGS WERE ADJUSTED TO REFLECT A TWO FOR ONE STOCK SPLIT EFFECTIVE DECEMBER THIRTY FIRST THE COMPANY SAID TELEPHONE LINES GREW THREE POINT THREE PERCENT LAST YEAR TOTALING SEVENTEEN POINT SIX MILLION LINES WHILE CELLULAR SERVICE SALES ROSE FORTY SEVEN PERCENT TO EIGHT HUNDRED SIXTY THOUSAND CUSTOMERS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE AMERITECH SHARES WERE QUOTED AT SEVENTY EIGHT POINT EIGHT SEVEN FIVE DOLLARS UP THREE DOLLARS AND SEVENTY FIVE CENTS BY PRESSING A RARE ANTITRUST CHARGE AGAINST TWO DEFENSE CONTRACTORS THE JUSTICE AND DEFENSE DEPARTMENTS SAID THEY ARE TRYING TO ENFORCE A NEW CODE OF BEHAVIOR FOR COMPANIES COMPETING IN A SHRINKING MARKET FOR WEAPONS IN A NEWS CONFERENCE AT THE PENTAGON YESTERDAY OFFICIALS SAID THE ACTION AGAINST ALLIANT TECHSYSTEMS INCORPORATED AND AEROJET GENERAL CORPORATION A SUBSIDIARY OF GENCORP INCORPORATED WAS INTENDED TO QUOTE SEND A MESSAGE TO DEFENSE CONTRACTORS QUOTE THAT SOME SO CALLED TEAMING ARRANGEMENTS TO BID ON DEFENSE CONTRACTS ARE ILLEGAL THE TWO COMPANIES WHICH HAD TEAMED UP TO MANUFACTURE CLUSTER BOMBS FOR THE MILITARY AGREED TO A CONSENT DECREE UNDER WHICH THEY WOULD LOWER THE GOVERNMENT'S COST FOR THE ONE HUNDRED THIRTY THREE MILLION DOLLAR CONTRACT BY A TOTAL OF TWELVE MILLION DOLLARS REFERRING TO TEAMING ARRANGEMENTS ROBERT LITAN A DEPUTY ASSISTANT ATTORNEY GENERAL FOR THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION EXPLAINED THEY WERE ALLOWABLE AND SOMETIMES NECESSARY FOR COMPANIES TO HANG ON IN A DECLINING MARKET THE ONE BETWEEN ALLIANT AND AEROJET HOWEVER VIOLATED THE SHERMAN ACT BECAUSE IT DIVIDED UP THE MARKET AND CAUSED A DRAMATIC INCREASE IN PRICE HE CHARGED IN A STATEMENT AFTER THE PENTAGON'S NEWS CONFERENCE AEROJET'S PRESIDENT ROGER RAMSEIER OBJECTED TO MR. LITAN'S REMARKS THE AGREEMENT BETWEEN THE TWO COMPANIES HE ASSERTED WAS NOT ANTICOMPETITIVE AND IT DID NOT COST THE GOVERNMENT OR THE TAXPAYERS A SINGLE PENNY AEROJET BASED IN SACRAMENTO CALIFORNIA AGREED TO THE CONSENT AGREEMENT ACCORDING TO THE COMPANY'S STATEMENT TO AVOID A LENGTHY AND COSTLY LITIGATION WITH THE GOVERNMENT ON THIS MATTER IN A RELEASE LATE YESTERDAY ALLIANT BASED IN EDINA MINNESOTA SAID IT REMAINS FIRMLY CONVINCED THAT THE TEAMING ARRANGEMENT WAS AND IS LEGAL AND COMPLIANT WITH GOVERNMENT CONTRACTING AND ANTITRUST LAW AND POLICY THE COMPANY AGREED TO THE CONSENT DECREE ALLIANT ASSERTED ONLY IN ORDER TO AVOID COSTLY LITIGATION UNTIL NINETEEN NINETY TWO THE TWO COMPANIES COMPETED IN SUPPLYING CLUSTER BOMBS TO THE MILITARY IN THE SUMMER OF NINETEEN NINETY TWO HOWEVER THEY TEAMED UP TO PROVIDE A JOINT BID ACCORDING TO JAMIE GORELICK THE PENTAGON'S GENERAL COUNSEL THE BID ACCORDING TO THE U. S. OFFICIALS RAISED THE PRICE OF CLUSTER BOMBS BY MORE THAN ONE THOUSAND DOLLARS APIECE USED HEAVILY DURING THE GULF WAR CLUSTER BOMBS DAMAGE VEHICLES AND TROOPS OVER A WIDE AREA BY SCATTERING SMALL BOMBLETS PREVIOUSLY THEY HAD COST THE PENTAGON THIRTEEN THOUSAND SIX HUNDRED DOLLARS APIECE MR. LITAN SAID THERE HAD BEEN ONLY FOUR ANTITRUST CHALLENGES TO DEFENSE COMPANY MERGERS IN RECENT YEARS THIS IS AN UNUSUAL EVENT HE EXPLAINED MS. GORELICK CALLED THE CASE WHICH WAS INSTIGATED BY CHARGES FROM THE ARMY AND PREPARED BY THE JUSTICE DEPARTMENT'S OFFICE IN SAN FRANCISCO A QUOTE PERFECT EXAMPLE OF HOW D. O. D. AND DOJ CAN AND WILL PARTICIPATE QUOTE TO PREVENT THE GOVERNMENT FROM BEING OVERCHARGED THE WHITE HOUSE CONTACTED FORMER NEW HAMPSHIRE SENATOR WARREN RUDMAN YESTERDAY TO GAUGE HIS INTEREST IN BECOMING DEFENSE SECRETARY AN ADMINISTRATION OFFICIAL SAID IT ISN'T CLEAR WHETHER MR. RUDMAN A REPUBLICAN IS INTERESTED IN THE JOB HE COULDN'T BE REACHED FOR A COMMENT LAST NIGHT SEPARATELY OTHER ADMINISTRATION AIDES SAID THE WHITE HOUSE QUOTE SOUNDED OUT QUOTE SENATOR SAM NUNN RECENTLY ABOUT WHETHER HE WAS INTERESTED IN TAKING THE PENTAGON POST AFTER BOBBY INMAN TOLD THE WHITE HOUSE ON JANUARY SIXTH THAT HE WANTED TO WITHDRAW HIS NAME FROM CONSIDERATION FOR THE DEFENSE POST ONE AIDE SAID VICE PRESIDENT AL GORE BEGAN THE PROCESS OF LOOKING FOR A NEW NOMINEE AS PART OF THAT PROCESS MR. GORE TALKED TO SENATOR NUNN THE CHAIRMAN OF THE ARMED SERVICES COMMITTEE BUT THE GEORGIA DEMOCRAT EXPRESSED NO INTEREST IN THE JOB THE AIDE SAID AIDES TO SENATOR NUNN DECLINED TO COMMENT U. S. BANKNOTE CORPORATION NEW YORK WAS NAMED IN A SHAREHOLDER SUIT IN THE WAKE OF ITS LOSS OF U. S. POSTAL SERVICE PRINTING WORK A LAWSUIT IN FEDERAL COURT IN MANHATTAN ALLEGES THAT THE NEW YORK COMPANY FAILED TO WARN SHAREHOLDERS THAT ITS POSTAL SERVICE CONTRACT WAS AT RISK U. S. BANKNOTE NORTH AMERICA'S LARGEST PRIVATE SECURITY PRINTING COMPANY RECEIVED NO ORDERS IN THE MOST RECENT ROUND OF CONTRACTS VALUED AT AS MUCH AS THREE HUNDRED THIRTY MILLION DOLLARS OVER FIVE YEARS THE LAWSUIT SEEKS CLASS ACTION STATUS FOR THOSE WHO BOUGHT U. S. BANKNOTE COMMON STOCK BETWEEN APRIL NINETEEN NINETY THREE AND JANUARY SIXTH NINETEEN NINETY FOUR THE DAY THE COMPANY ANNOUNCED THAT THE POSTAL SERVICE CONTRACT WOULD BE SPLIT AMONG FOUR COMPETITORS THE NEWS HAMMERED THE COMPANY'S STOCK PRICE THE COMPANY DECLINED TO COMMENT ON THE LAWSUIT THE SUIT ALSO ALLEGES THAT MORRIS WEISSMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAD AN INCENTIVE TO KEEP U. S. BANKNOTE'S STOCK PRICE ARTIFICIALLY HIGH BECAUSE OF TERMS ON AN EMPLOYMENT CONTRACT TIED TO THE STOCK PRICE SHAREHOLDERS OF DRESSER INDUSTRIES INCORPORATED AND BAROID CORPORATION APPROVED DRESSER'S PROPOSED ACQUISITION OF BAROID PROMPTING STANDARD AND POOR'S CORPORATION TO RAISE ITS RATING ON BAROID'S ONE HUNDRED FIFTY MILLION DOLLARS OF EIGHT PERCENT SENIOR NOTES DUE APRIL FIFTEENTH TWO THOUSAND THREE AS PREVIOUSLY ANNOUNCED DRESSER WILL ACQUIRE BAROID IN A STOCK TRANSACTION VALUED AT ABOUT EIGHT HUNDRED FIFTY MILLION DOLLARS DRESSER BASED IN DALLAS AND BAROID HOUSTON ARE BOTH ENERGY SERVICES COMPANIES S. AND P. RAISED ITS RATING ON BAROID'S NOTES TO SINGLE A MINUS FROM DOUBLE B. PLUS AND REMOVED THE NOTES FROM CREDITWATCH WHERE THEY WERE PLACED LAST SEPTEMBER S. AND P. SAID THE UPGRADE REFLECTS THE CREDIT QUALITY OF DRESSER WHICH INTENDS TO GUARANTEE BAROID'S DEBT ATTORNEY GENERAL JANET RENO IS EXPECTED TO APPOINT A FORMER U. S. ATTORNEY IN NEW YORK AS THE INDEPENDENT COUNSEL TO INVESTIGATE MATTERS SURROUNDING PRESIDENT CLINTON'S INVESTMENTS IN WHITEWATER DEVELOPMENT CORPORATION THE APPOINTMENT OF ROBERT FISKE JUNIOR A SIXTY THREE YEAR OLD BROOKLYN NATIVE AND PARTNER IN THE NEW YORK LAW FIRM DAVIS POLK AND WARDWELL COULD COME AS EARLY AS TODAY ACCORDING TO A LAW ENFORCEMENT OFFICIAL A GRADUATE OF YALE UNIVERSITY AND THE UNIVERSITY OF MICHIGAN LAW SCHOOL MR. FISKE WAS A U. S. ATTORNEY FROM NINETEEN SEVENTY SIX TO NINETEEN EIGHTY MORE RECENTLY HE REPRESENTED FORMER DEFENSE SECRETARY CLARK CLIFFORD AND WASHINGTON LAWYER ROBERT ALTMAN IN A CRIMINAL CASE INVOLVING B. C. C. I. HOLDINGS LUXEMBOURG S. A. MS. RENO HAD CONSISTENTLY RESISTED CALLS TO APPOINT AN INDEPENDENT COUNSEL ARGUING THAT ANYONE SHE CHOSE WOULDN'T BE CONSIDERED TRULY INDEPENDENT BUT SHE DROPPED HER OPPOSITION LAST WEEK AFTER MR. CLINTON REQUESTED THE APPOINTMENT WHITE HOUSE AIDES EXPLAINED THAT MR. CLINTON HAD DECIDED THE WHITEWATER FUROR WAS INTERFERING WITH HIS ADMINISTRATION'S WORK WAS MONEY FROM A NOW DEFUNCT LITTLE ROCK ARKANSAS THRIFT MADISON GUARANTY SAVINGS AND LOAN IMPROPERLY USED TO PAY OFF MR. CLINTON'S ARKANSAS GUBERNATORIAL CAMPAIGN DEBT DID THE CLINTONS GET A SWEETHEART DEAL ON THEIR WHITEWATER INVESTMENT THEY WERE EQUAL PARTNERS WITH JAMES AND SUSAN MCDOUGAL IN WHITEWATER BUT PUT UP MUCH LESS MONEY MR. MCDOUGAL OWNED MADISON GUARANTY AND HILLARY RODHAM CLINTON WAS ITS LAWYER BECAUSE OF THE CLINTON MCDOUGAL RELATIONSHIP DID STATE REGULATORS INAPPROPRIATELY HELP MADISON BY APPROVING AN UNUSUAL STOCK SALE TO BOLSTER THE THRIFT CAREER OFFICIALS FROM THE FRAUD SECTION OF THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION AS WELL AS THE DEPARTMENT'S OFFICE OF PROFESSIONAL RESPONSIBILITY AND OFFICE OF PUBLIC INTEGRITY HAD BEEN PROBING MATTERS RELATED TO WHITEWATER THOSE INVESTIGATIONS WOULD BE TAKEN OVER BY MR. FISKE HE WOULD BE APPOINTED UNDER REGULATIONS THAT GIVE HIM QUOTE FULL POWER AND INDEPENDENT AUTHORITY TO EXERCISE ALL INVESTIGATIVE AND PROSECUTORIAL FUNCTIONS QUOTE HE WOULD HAVE THE POWER TO HIRE ATTORNEYS INVESTIGATORS AND OTHER STAFF FROM OUTSIDE THE CIVIL SERVICE RANKS AN INDEPENDENT COUNSEL MAY BE FIRED ONLY BY THE PERSONAL ACTION OF THE ATTORNEY GENERAL AND ONLY FOR GOOD CAUSE PHYSICAL DISABILITY MENTAL INCAPACITY OR ANY OTHER CONDITION THAT SUBSTANTIALLY IMPAIRS THE PERFORMANCE OF THE INDEPENDENT COUNSEL'S DUTIES ACCORDING TO THE REGULATIONS UNITED ILLUMINATING COMPANY SAID IT WILL TAKE A ONE TIME CHARGE OF SEVEN POINT EIGHT MILLION DOLLARS OR FIFTY SIX CENTS A SHARE AGAINST FOURTH QUARTER EARNINGS AS PART OF ITS QUOTE ONGOING ORGANIZATION REVIEW QUOTE THE ELECTRIC UTILITY COMPANY NEW HAVEN CONNECTICUT SAID THE CHARGE REFLECTS THE COST OF A VOLUNTARY EARLY RETIREMENT PROGRAM AND OTHER RESTRUCTURING COSTS THE COMPANY ALSO LOWERED ITS FOURTH QUARTER OPERATING EARNINGS ESTIMATE PREVIOUSLY BETWEEN FIFTEEN CENTS AND TWENTY FIVE CENTS A SHARE FINAL EARNINGS WILL BE RELEASED NEXT WEEK IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING UNITED ILLUMINATING CLOSED AT THIRTY SEVEN DOLLARS AND TWENTY FIVE CENTS A SHARE DOWN ONE DOLLAR AND TWENTY FIVE CENTS ALANTEC CORPORATION AN OFFERING OF TWO MILLION COMMON SHARES VIA HAMBRECHT AND QUIST INCORPORATED AND KIDDER PEABODY AND COMPANY CIDCO INCORPORATED AN OFFERING OF THREE POINT THREE FIVE MILLION COMMON SHARES VIA ALEXANDER BROWN AND SONS INCORPORATED AND MONTGOMERY SECURITIES COLE NATIONAL CORPORATION AN INITIAL OFFERING OF FIVE MILLION CLASS A COMMON SHARES VIA MERRILL LYNCH AND COMPANY C. S. FIRST BOSTON AND SMITH BARNEY SHEARSON INCORPORATED HEALTH POWER INCORPORATED AN OFFERING OF NINE HUNDRED THOUSAND COMMON SHARES VIA RONEY AND COMPANY STORAGE U. S. A. INCORPORATED AN OFFERING OF FIVE POINT FIVE MILLION COMMON SHARES VIA MORGAN KEEGAN AND COMPANY AND KEMPER SECURITIES INCORPORATED K. L. M. ROYAL DUTCH AIRLINES SAID IT WILL HOLD THE STAKE IN ITS U. S. AFFILIATE NORTHWEST AIRLINES CORPORATION AT AROUND TWENTY PERCENT FOLLOWING NORTHWEST'S INITIAL PUBLIC OFFERING OF TWENTY MILLION CLASS A COMMON SHARES K. L. M. HAS A SEVEN POINT FIVE PERCENT VOTING STAKE IN NORTHWEST NORTHWEST ON TUESDAY SAID IT EXPECTS TO RAISE ABOUT FOUR HUNDRED MILLION DOLLARS IN EQUITY THROUGH THE OFFERING WHICH IT EXPECTS TO OCCUR IN THE FIRST QUARTER THE DUTCH CARRIER SAID IT WILL MAINTAIN ITS STAKE IN NORTHWEST VIA AN EXCHANGE OF PREFERRED SHARES FOR COMMON STOCK AMONG EXISTING SHAREHOLDERS K. L. M.'S LOANS TO NORTHWEST HAVE BEEN CARRIED ON NORTHWEST'S BOOKS AS PREFERRED STOCK A K. L. M. SPOKESMAN SAID K. L. M. IN NINETEEN NINETY ONE AND NINETEEN NINETY TWO WROTE OFF THE ENTIRE VALUE OF ITS ORIGINAL FOUR HUNDRED MILLION DOLLAR INVESTMENT IN NORTHWEST DESPITE THE FACT THAT K. L. M. HAS CONSIDERED THE LOANS AS SUBORDINATED DEBT SYMANTEC CORPORATION REPORTED A NARROWED LOSS OF NINE POINT TWO MILLION DOLLARS OR THIRTY ONE CENTS A SHARE FOR ITS FISCAL THIRD QUARTER INCLUDING ONE TIME CHARGES OF TWENTY ONE POINT FIVE MILLION DOLLARS OR FORTY NINE CENTS A SHARE FOR ACQUISITIONS AND LITIGATION THE CUPERTINO CALIFORNIA SOFTWARE CONCERN HAD A LOSS OF ELEVEN POINT FIVE MILLION DOLLARS OR FORTY CENTS A SHARE IN THE YEAR AGO PERIOD REVENUE FOR THE PERIOD ENDED DECEMBER THIRTY FIRST WAS SIXTY SEVEN MILLION DOLLARS UP NINE PERCENT FROM SIXTY ONE POINT SIX MILLION DOLLARS A YEAR AGO SEPARATELY THE COMPANY ANNOUNCED A NINETEEN MILLION DOLLAR TENTATIVE SETTLEMENT OF THREE SHAREHOLDER LAWSUITS FILED AGAINST IT IN SAN JOSE FEDERAL COURT IN DECEMBER NINETEEN NINETY TWO THE SUITS ALLEGED THAT THE COMPANY PROVIDED FALSE AND MISLEADING FINANCIAL DATA IN VIOLATION OF FEDERAL SECURITIES LAWS BETWEEN JUNE NINETEEN NINETY ONE AND OCTOBER NINETEEN NINETY TWO SYMANTEC HAS DENIED ANY WRONGDOING THE SETTLEMENT ALL BUT SIX POINT FIVE MILLION DOLLARS OF WHICH WILL BE PAID BY THE COMPANY'S INSURERS IS INCLUDED IN THE QUARTERLY RESULTS ALSO INCLUDED IS A CHARGE OF FIFTEEN MILLION DOLLARS FOR THE PURCHASE OF SOFTWARE MAKER FIFTH GENERATION SYSTEMS INCORPORATED FRIGID WEATHER MAY WARM UP THE OUTLOOK A BIT FOR SOME UTILITIES DEFLATED UTILITY STOCKS MAY BENEFIT FROM THE RECENT COLD SNAP SAYS DEAN WITTER ANALYST WILLIAM TILLES STILL HE CAUTIONS THAT THE NINETEEN NINETY THREE FIRST QUARTER WAS A COLD ONE TOO WHICH MAY TEMPER ANY YEAR TO YEAR GAINS UTILITIES THAT SUPPLY NATURAL GAS FOR HEAT STAND THE BEST CHANCE OF A LIFT BUT ELECTRICITY USE ALSO RISES THE EDISON ELECTRIC INSTITUTE SAYS USAGE IN THE FIRST TWO WEEKS OF JANUARY IS EIGHT PERCENT ABOVE A YEAR EARLIER AND MORE THAN TWICE THE RATE OF GAIN EDISON SEES FOR NINETY FOUR THE AMERICAN GAS ASSOCIATION SAYS MANY NATURAL GAS PIPELINES ARE RUNNING AT OR NEAR CAPACITY AND UTILITIES HAVE BEGUN TO DIP INTO VAST SUPPLIES BUT THE UTILITIES' EXPENSES RISE IN A FREEZE TOO BROOKLYN UNION GAS COMPANY TRANSPORTS RECORD VOLUME SO FAR THIS MONTH BUT THE UTILITY NOTES THAT ANY POSSIBLE EARNINGS GAIN IS MODERATED BY REGULATORY CAPS ON RATES QUOTE STILL THIS WILL BE BETTER FOR US THAN A MILD WINTER WOULD HAVE QUOTE SAYS A BROOKLYN GAS OFFICIAL NO QUESTION WE'LL GET A REVENUE KICK FROM THIS SAYS WISCONSIN PUBLIC SERVICE IN GREEN BAY WHERE IT HITS TWENTY BELOW QUAKE AID AND OTHER DISASTER RELIEF FROM CORPORATIONS GROW MORE ORGANIZED AFTER HURRICANE ANDREW KMART CORPORATION SENT ALL SORTS OF GOODS TO HELP VICTIMS AND FOUND THERE WERE SOME TREMENDOUS MISMATCHES NOW TO HELP OUT IN L. A. IT GIVES CASH AND BOTTLED WATER SOME COMPANIES TEAM UP WITH GIFTS IN KIND AMERICA AN ALEXANDRIA VIRGINIA NONPROFIT GROUP THAT MATCHES AND TRANSPORTS DONATED GOODS ABOUT TWENTY FIRMS INCLUDING AVON PRODUCTS NEW YORK AND RECREATIONAL EQUIPMENT INCORPORATED SEATTLE GIVE GOODS IN ADVANCE THAT ARE STORED BY GIFTS IN KIND AVON WHICH LAST YEAR GAVE AWAY SOME NINE MILLION DOLLARS WORTH OF PERSONAL CARE ITEMS THIS YEAR TURNS OVER THE WHOLE DONATED GOODS JOB TO THE GO BETWEEN GROUP IT'S EFFICIENT AND TIMELY SAYS GLENN S. CLARKE HEAD OF THE AVON PRODUCTS FOUNDATION AVON PAYS UNDER FIFTY THOUSAND DOLLARS FOR THE SERVICE ABOUT ONE THIRD OF WHAT IT WOULD COST US TO RUN IT SAYS MR. CLARKE RECREATIONAL EQUIPMENT LETS THE GROUP PICK ITEMS SUCH AS FIRST AID KITS AND LANTERNS FROM ITS CATALOG NIBBLING THE EAR OF THE AUDIO MARKET ROMANCE NOVELS COURT LISTENERS SOME FORTY SIX PERCENT OF ALL PAPERBACKS SOLD ARE ROMANCES YET SUCH TITLES ACCOUNT FOR ONLY A TINY PART OF THE AUDIO BOOK MARKET SAYS DCC COMPACT CLASSICS LOS ANGELES BUT THAT MAY CHANGE AS DCC'S NEW ROMANCE AUDIO UNIT AND OTHERS WOO FANS OF THE FORMULA TALES IT'S A MARKET THAT HASN'T BEEN FULLY EXPLORED SAYS AN AVON BOOKS OFFICIAL JOHANNA LINDSEY A TOP AVON AUTHOR IS ONE OF FIFTEEN WRITERS SIGNED BY DCC WHICH SELLS TAPES FOR FIVE DOLLARS AND NINETY NINE CENTS IN GROCERY AND BOOK STORES THE ROMANCE GENRE TRIED THE LISTENING MARKET IN THE EARLY NINETEEN EIGHTIES WITHOUT MUCH SUCCESS SAYS JIM BRANNIGAN OF THE AUDIO PUBLISHERS ASSOCIATION WALLINGFORD CONNECTICUT HE ADDS QUOTE I SUSPECT IT WAS TOO EARLY QUOTE PRICING AND DISTRIBUTION STRATEGIES DIFFER AUDIO ENTERTAINMENT IN DENVER STARTED WITH A FOUR DOLLAR AND NINETY NINE CENT TAPE IN STORES BUT NOW FOCUSES ON MAIL ORDER SALES AT SIX DOLLARS AND NINETY NINE CENTS PER TAPE THE DENVER FIRM RECORDS ORIGINAL TALES TOLD ONLY ON TAPE NOT PUBLISHED NOVELS AUDIO ENTERTAINMENT RECENTLY HELD A TAPE SIGNING FOR TWO OF ITS AUTHORS AT THE TATTERED COVER BOOK STORE IN DENVER CASH FLOW IN THE FIRST QUARTER COULD RISE NEARLY TWELVE PERCENT FROM A YEAR EARLIER SAY CHIEF FINANCIAL OFFICERS SURVEYED BY A. T. KEARNEY CHICAGO CONSULTANTS EXECUTIVES SAID THEY EXPECT MODEST SALES INCREASES BUT STRONGER OPERATING PROFITS FROM RUSSIA WITH GUNS ORGANIZED CRIMINAL GANGS FROM THE FORMER SOVIET UNION HAVE SET UP SHOP IN THIRTY COUNTRIES SAYS CONTROL RISKS GROUP A MCLEAN VIRGINIA INTERNATIONAL SECURITY CONSULTANT IT ADDS NORDIC LANDS ARE MOST AT RISK DUE TO PROXIMITY TO THE FORMER SOVIET UNION GOODBYE LAPTOP HELLO PEN BASED MOBILE COMPUTER FIELD REPS FOR SMITHKLINE BEECHAM CONSUMER HEALTHCARE TORONTO USE TABLET SIZED P. C.S WITH ELECTRONIC PENS TO CALL UP PRODUCT INFORMATION TRANSMIT ORDERS AND STAY IN TOUCH WITH THE MAIN OFFICE THE CANADIAN UNIT SAYS U. S. AND U. K. OPERATIONS ARE MONITORING THE FIELD PROGRAM ANNUAL REPORTS DOUBLE AS MARKETING MATERIAL AT MORE COMPANIES GENERIC DRUG MAKER BARR LABORATORIES PRODUCED EXTRA ANNUAL REPORTS FOR FISCAL NINETEEN NINETY THREE IN ORDER TO SEND COPIES TO PROSPECTIVE SHAREHOLDERS AND CLIENTS IN DALLAS MESA INCORPORATED BOONE PICKENS'S ENERGY COMPANY PLANS TO USE ITS ANNUAL REPORT AS A MARKETING TOOL WHEN IT PITCHES WALL STREET AND THE FINANCIAL CONFERENCE CIRCUIT THIS YEAR SAYS A MESA EXECUTIVE IN NEW YORK CONSULTANT ADDISON CORPORATE ANNUAL REPORTS ADVISES MORE FIRMS TO USE THE REPORTS TO ACTUALLY SELL ITS CLIENT DURACELL INTERNATIONAL ADDED A FOUR PAGE FOLDOUT MEANT FOR CURRENT AND POTENTIAL INVESTORS MANY FIRMS STILL PLAN TO STRESS THEIR COMPETITIVENESS THIS YEAR SEQUENT COMPUTER SYSTEMS BEAVERTON OREGON WANTS ITS ANNUAL REPORT TO CONVEY A PERMANENT WHITE WATER ATTITUDE TOWARD ITS FLUID MARKET SAYS CASEY POWELL C. E. O. IN THE VOLATILE COMPUTER FIELD ASTUTE SHAREHOLDERS KNOW THEY SHOULD BE HEARING A LOT ABOUT CHANGE ADDS MR. POWELL BRIEFS T. T. T. TAXI A CAB FARE INCREASE TOOK HOLD IN CHICAGO THIS WEEK AS SUBZERO COLD GRIPS THE STREETS OVERLOOK HOSPITAL IN SUMMIT N. J. RESPONDS TO A PATIENT SATISFACTION SURVEY BY SLASHING ITS PARKING RATES AND LETTING OUTPATIENTS SENIOR CITIZENS AND BLOOD DONORS PARK FREE PANHANDLE EASTERN CORPORATION SAID IT WILL TAKE A FOURTH QUARTER ONE HUNDRED MILLION DOLLAR PRETAX CHARGE WHICH WILL BE PARTLY OFFSET BY A FORTY EIGHT MILLION DOLLAR PRETAX GAIN NEVERTHELESS THE HOUSTON BASED NATURAL GAS PIPELINE COMPANY SAID EARNINGS ARE EXPECTED TO REFLECT QUOTE AN IMPROVEMENT QUOTE FROM A YEAR EARLIER THE COMPANY SAID THAT DESPITE THE CHARGE AND THE GAIN IT EXPECTS EARNINGS TO BE IN LINE WITH ANALYSTS EXPECTATIONS OF ABOUT FORTY NINE MILLION DOLLARS OR THIRTY SEVEN CENTS A SHARE PER SHARE FIGURES REFLECT AN INCREASE IN COMMON SHARES OUTSTANDING TO ONE HUNDRED NINETEEN MILLION FROM ONE HUNDRED THIRTEEN MILLION A YEAR BEFORE IN NINETEEN NINETY TWO'S FOURTH PERIOD THE COMPANY HAD NET INCOME OF FORTY THREE MILLION DOLLARS OR FORTY CENTS A SHARE RESTATED FOR AN ACCOUNTING CHANGE ON REVENUE OF SIX HUNDRED NINETY SEVEN POINT THREE MILLION DOLLARS PANHANDLE SAID THE CHARGE IS RELATED TO CERTAIN REGULATORY ISSUES AFFECTING ITS TEXAS EASTERN TRANSMISSION CORPORATION SUBSIDIARY WHICH DEREGULATED CERTAIN PIPELINE OPERATIONS THE GAIN IS FROM THE SALE OF CERTAIN PIPELINE ASSETS TO INVESTORS SANTA FE PACIFIC CORPORATION SAID FOURTH QUARTER NET INCOME FELL SIXTY PERCENT BECAUSE YEAR EARLIER EARNINGS INCLUDED A TWO HUNDRED FOUR POINT NINE MILLION DOLLAR GAIN FROM SALE OF RAIL LINES NET FOR THE QUARTER WAS SIXTY SEVEN MILLION DOLLARS OR THIRTY SIX CENTS A SHARE DOWN FROM ONE HUNDRED SIXTY EIGHT POINT NINE MILLION DOLLARS OR NINETY ONE CENTS A SHARE OPERATING PROFIT ROSE THIRTY TWO PERCENT TO ONE HUNDRED FORTY THREE POINT FIVE MILLION DOLLARS FROM ONE HUNDRED EIGHT POINT SIX MILLION DOLLARS REVENUE ROSE SIXTEEN PERCENT TO SEVEN HUNDRED THIRTY TWO POINT SIX MILLION DOLLARS THE SCHAUMBURG ILLINOIS TRANSPORTATION ENERGY AND MINING COMPANY SAID RESULTS WERE BOOSTED BY RECORD OPERATING PROFIT AT ITS RAILWAY UNIT HIGHER PROFIT AT ITS GOLDMINING UNIT AND LOWER INTEREST EXPENSE FOR THE YEAR NET ROSE TO THREE HUNDRED THIRTY EIGHT POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND EIGHTY ONE CENTS A SHARE AGAINST A LOSS OF ONE HUNDRED FOUR POINT FIVE MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE IN NINETEEN NINETY TWO THE NINETEEN NINETY THREE EARNINGS INCLUDE A NONRECURRING PRETAX GAIN OF THREE HUNDRED SIXTY TWO POINT NINE MILLION DOLLARS THE YEAR EARLIER RESULTS INCLUDE A ONE TIME CHARGE OF THREE HUNDRED TWENTY POINT FOUR MILLION DOLLARS FOR CENTRALIZING OPERATIONS AND INCREASED ENVIRONMENTAL ACCRUALS AND A CHARGE OF ONE HUNDRED SIXTY THREE MILLION DOLLARS FOR RETIREE AND INACTIVE EMPLOYEE BENEFITS APPLIED EXTRUSION TECHNOLOGIES INCORPORATED SAID IT ENTERED INTO A LETTER OF INTENT TO ACQUIRE THE PACKAGING FILM GROUP OF HERCULES INCORPORATED FOR MORE THAN ONE HUNDRED SIXTY MILLION DOLLARS APPLIED EXTRUSION A SALEM MASSACHUSETTS BASED PLASTICS PRODUCTS MAKER SAID IT PLANS TO FINANCE THE TRANSACTION WITH A COMBINATION OF DEBT AND EQUITY SECURITIES IT WASN'T MORE SPECIFIC HERCULES WILMINGTON DELAWARE IS A CHEMICAL CONCERN THE PACKAGING FILM GROUP HAS ANNUAL SALES OF MORE THAN ONE HUNDRED SIXTY MILLION DOLLARS APPLIED EXTRUSION SAID ARMSTRONG WORLD INDUSTRIES INCORPORATED LANCASTER PENNSYLVANIA SAID IT WILL TAKE A FOURTH QUARTER RESTRUCTURING CHARGE OF SIXTY MILLION DOLLARS LARGELY RELATED TO CONTINUED JOB CUTS RESULTING IN A LOSS ARMSTRONG SAID THAT EXCLUDING THE RESTRUCTURING CHARGES OF ONE DOLLAR AND FIFTY NINE CENTS A SHARE WOULD BE BETWEEN EIGHTY CENTS AND EIGHTY FIVE CENTS A SHARE FULLY DILUTED THAT WOULD FAR EXCEED THE THIRTEEN CENTS A SHARE IN OPERATING PROFIT IN THE NINETEEN NINETY TWO FOURTH QUARTER AND THE FIFTY EIGHT CENTS A SHARE ANALYSTS EXPECT FOR THE QUARTER THE NEWS SENT ARMSTRONG'S SHARES SHARPLY HIGHER TO CLOSE AT FIFTY SEVEN POINT ONE TWO FIVE DOLLARS UP FOUR DOLLARS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ARMSTRONG SAID SALES ROSE FOUR PERCENT FROM THE SIX HUNDRED POINT ONE MILLION DOLLARS OF A YEAR AGO AND WERE A RECORD FOR ANY FOURTH QUARTER ARMSTRONG EXPECTS TO POST ITS RESULTS NEXT WEEK THE MAKER AND MARKETER OF FLOOR COVERINGS AND INDOOR FURNISHINGS SAID ITS FUTURE LOWER COST STRUCTURE WILL HAVE A CONTINUING POSITIVE EFFECT ON EARNINGS AND CASH FLOW BEGINNING THIS YEAR KERR MCGEE CORPORATION SAID IT EXPECTS BREAK EVEN RESULTS FOR THE FOURTH QUARTER COMPARED WITH A YEAR AGO LOSS OF ONE HUNDRED TWO MILLION DOLLARS OR TWO DOLLARS AND TWELVE CENTS A SHARE AFTER CHARGES FOR THE YEAR THE OKLAHOMA CITY ENERGY AND CHEMICAL CONCERN EXPECTS TO REPORT NET INCOME OF SEVENTY FIVE MILLION DOLLARS TO EIGHTY MILLION DOLLARS COMPARED WITH YEAR AGO LOSS OF ONE HUNDRED POINT FIVE MILLION DOLLARS WHICH INCLUDED TWO HUNDRED FOUR POINT FIVE MILLION DOLLARS IN CHARGES KERR MCGEE SAID ITS LOWER YEAR END PROFITS WERE DUE TO DEPRESSED OIL PRICES AND HIGHER EXPLORATION EXPENSES S. P. I. HOLDING INCORPORATED RICHARDSON TEXAS SAID ITS SPECTRADYNE UNIT AGREED TO TRANSFER ITS MANUFACTURING OPERATIONS TO CERPLEX GROUP INCORPORATED OF ANAHEIM CALIFORNIA SPECTRADYNE PROVIDES PAY PER VIEW MOVIES AND OTHER PROGRAMMING TO HOTEL ROOMS ITS MANUFACTURING OPERATIONS PRODUCE THE EQUIPMENT THAT ALLOWS THE HOTELS TO RECEIVE THE PROGRAMMING UNDER THE ACCORD CERPLEX A CLOSELY HELD ELECTRONICS CONCERN WILL LEASE SPECTRADYNE'S MANUFACTURING SPACE FOR FIVE YEARS SPECTRADYNE WILL PURCHASE EQUIPMENT FROM CERPLEX FOR AT LEAST ONE YEAR AFTER THAT SPECTRADYNE WILL BE FREE TO BUY EQUIPMENT QUOTE OFF THE SHELF QUOTE FROM OTHER MANUFACTURERS A SPOKESWOMAN SAID NO OTHER TERMS OF THE ACCORD WERE DISCLOSED THE OPERATIONS INVOLVED EMPLOY ALMOST ONE HUNDRED PEOPLE DEFIANCE INCORPORATED CITING THE STRONG DOMESTIC AUTOMOTIVE INDUSTRY SAID IT EXPECTS PER SHARE EARNINGS FOR THE FISCAL YEAR ENDING JUNE THIRTIETH TO BE IN THE RANGE OF THE MID SEVENTY CENTS BEFORE ACCOUNTING CHARGES THE CLEVELAND COMPANY ALSO SAID SALES FOR THE YEAR SHOULD APPROACH EIGHTY ONE MILLION DOLLARS IN FISCAL NINETEEN NINETY THREE DEFIANCE EARNED THREE POINT FOUR MILLION DOLLARS OR FIFTY FOUR CENTS A SHARE ON SEVENTY NINE POINT TWO MILLION DOLLARS IN SALES DEFIANCE A SUPPLIER OF PRODUCTS ENGINEERING AND DESIGN SERVICES SAID IT RECEIVED TWO CONTRACTS TO SUPPLY CAM FOLLOWER ROLLERS DEVICES USED IN ENGINES A CONTRACT WITH EATON CORPORATION WILL ADD ABOUT ONE POINT SEVEN MILLION DOLLARS IN ANNUAL SALES STARTING THIS SUMMER A CONTRACT WITH GENERAL MOTORS CORPORATION'S A. C. ROCHESTER UNIT WILL ADD ABOUT SEVEN POINT THREE MILLION DOLLARS A YEAR IN SALES STARTING IN THE SUMMER OF NINETEEN NINETY FIVE THESE CONTRACTS EXTEND CURRENT PACTS WITH THE TWO COMPANIES DEFIANCE INCORPORATED EXPECTS PER SHARE EARNINGS IN THE MID SEVENTY CENTS AREA BEFORE ACCOUNTING CHANGES FOR THE YEAR ENDING JUNE THIRTIETH AN ARTICLE YESTERDAY INCORRECTLY CALLED THE ACCOUNTING CHANGES CHARGES TWO FOREST PRODUCTS COMPANIES WEYERHAEUSER COMPANY AND WILLAMETTE INDUSTRIES INCORPORATED SAID HIGH PRICES AND STRONG DEMAND FOR LUMBER FUELED FOURTH QUARTER RESULTS THAT TOPPED ANALYSTS' EXPECTATIONS TACOMA WASHINGTON BASED WEYERHAEUSER SAID IT EARNED ONE HUNDRED ONE POINT SEVEN MILLION DOLLARS OR FIFTY CENTS A SHARE COMPARED WITH EIGHTY FIVE POINT THREE MILLION DOLLARS OR FORTY TWO CENTS A SHARE IN THE YEAR AGO QUARTER SALES ROSE TEN PERCENT TO TWO POINT FIVE NINE BILLION DOLLARS ANALYSTS HAD EXPECTED WEYERHAEUSER TO REPORT PER SHARE NET OF FORTY SEVEN CENTS FOR THE QUARTER ACCORDING TO ZACKS INVESTMENT RESEARCH FOR NINETEEN NINETY THREE WEYERHAEUSER'S NET INCOME SURGED FIFTY EIGHT PERCENT TO FIVE HUNDRED SEVENTY NINE POINT THREE MILLION DOLLARS OR TWO DOLLARS AND EIGHTY THREE CENTS A SHARE FROM THREE HUNDRED SEVENTY TWO MILLION DOLLARS OR ONE DOLLAR AND EIGHTY THREE CENTS A SHARE SALES INCHED UP THREE PERCENT TO NINE POINT FIVE FOUR BILLION DOLLARS RESULTS IN NINETEEN NINETY THREE INCLUDED NONRECURRING GAINS OF ONE HUNDRED THIRTY TWO MILLION DOLLARS OR SIXTY FIVE CENTS A SHARE FROM ASSET DISPOSITION AND DEBT EXTINGUISHMENT PLUS A CHARGE OF TWENTY MILLION DOLLARS OR TEN CENTS A SHARE FOR DEFERRED TAXES WILLAMETTE OF PORTLAND OREGON SAID NET INCOME FOR THE FOURTH QUARTER WAS THIRTY TWO POINT ONE MILLION DOLLARS OR FIFTY NINE CENTS A SHARE COMPARED WITH THIRTEEN POINT TWO MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE IN NINETEEN NINETY TWO'S FOURTH QUARTER SALES GAINED TEN PERCENT TO SIX HUNDRED FIFTY EIGHT MILLION DOLLARS ANALYSTS ESTIMATED WILLIAMETTE WOULD POST PER SHARE EARNINGS OF FORTY NINE CENTS FOR THE YEAR WILLAMETTE EARNED ONE HUNDRED THIRTY SEVEN MILLION DOLLARS OR TWO DOLLARS AND FIFTY CENTS A SHARE INCLUDING A NONRECURRING ACCOUNTING RELATED GAIN OF TWENTY SIX POINT THREE MILLION DOLLARS OR FORTY EIGHT CENTS A SHARE AND A CHARGE OF ABOUT SIX MILLION DOLLARS OR ELEVEN CENTS A SHARE FOR DEFERRED TAXES IN NINETEEN NINETY TWO THE COMPANY HAD NET OF EIGHTY ONE POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND FIFTY TWO CENTS A SHARE SALES GAINED ELEVEN PERCENT TO TWO POINT SIX TWO BILLION DOLLARS PAPER AND PULP OPERATIONS AT BOTH COMPANIES CONTINUED TO BE WEAK REFLECTING RECESSIONARY EFFECTS OF WEAK DEMAND AND LOW PRICES BUT DEMAND FOR LUMBER AND OTHER BUILDING PRODUCTS STRENGTHENED AS THE NATION'S CONSTRUCTION SECTOR REVIVED STRONGER MANUFACTURING HOME CONSTRUCTION AND CONSUMER SPENDING ON BIG TICKET PURCHASES ARE BUTTRESSING ECONOMIC GROWTH A MOSTLY OPTIMISTIC FEDERAL RESERVE SAID IN ITS PERIODIC REGIONAL SURVEY QUOTE ECONOMIC ACTIVITY CONTINUED TO EXPAND WITH SIGNS OF ACCELERATION IN SOME SECTORS QUOTE SAID THE REPORT ON THE ECONOMY'S PERFORMANCE OVER THE PAST SIX WEEKS THE REPORT ISSUED IN ADVANCE OF A MEETING OF THE FED'S MONETARY POLICY MAKERS EARLY NEXT MONTH ALSO INDICATED THAT INFLATION REMAINED TAME LITTLE UPWARD PRESSURE ON WAGES AND PRICES WAS INDICATED BY ALMOST ALL DISTRICTS IT SAID WITH RISING LUMBER PRICES THE LONE EXCEPTION SOUTHERN CALIFORNIA BATTERED BY THE DEPRESSED REAL ESTATE AND DEFENSE INDUSTRIES WAS THE ONLY AREA OF THE COUNTRY NOTED FOR CONTINUED WEAKNESS THE SURVEY WAS MADE BEFORE MONDAY'S EARTHQUAKE BUT OTHER PARTS OF THE STATE SHOW SIGNS OF BOTTOMING OUT OR OF MODEST IMPROVEMENT THE REPORT SAID HOLIDAY SPENDING WAS GENERALLY AS GOOD OR BETTER THAN EXPECTED WITH MOST OF THE SPARK COMING FROM SALES OF ELECTRONICS APPLIANCES AND OTHER HOME RELATED DURABLES AUTO SALES WERE PARTICULARLY STRONG IN THE DALLAS MINNEAPOLIS SAINT LOUIS AND SAN FRANCISCO DISTRICTS ONLY IN THE BOSTON DISTRICT DID RETAILERS REPORT DISAPPOINTINGLY MODEST GAINS FROM YEAR EARLIER HOLIDAY SALES APPAREL SALES WERE WEAKER WITH PURCHASES OF ROSE BOWL ITEMS IN WISCONSIN ONE DRAMATIC EXCEPTION MOREOVER RETAILERS RELIED ON HEAVY ADVERTISING AND DISCOUNTING TO SPUR THE SALES DESPITE THE DISAPPOINTING HOLIDAY SALES RETAILERS IN BOSTON AS WELL AS THOSE IN KANSAS CITY PHILADELPHIA RICHMOND AND SAINT LOUIS REGIONS EXPECT CONTINUED ECONOMIC GROWTH TO BOOST RETAIL SALES MODERATELY THIS SPRING AFTER SEVERAL HARSH YEARS SALES AND CONSTRUCTION OF HOMES SHOWED SUBSTANTIAL GAINS IN MOST DISTRICTS EVEN NEW ENGLAND IS EXHIBITING SIGNS OF LIFE WITH HARD HIT CONNECTICUT'S RESIDENTIAL MARKET STABILIZING SOME OF THE BUSINESSES THAT WERE POLLED SPECULATED THAT THE RECENT UPTICK IN LONG TERM INTEREST RATES MAY BE PROMPTING SOME BUYERS TO MOVE AS THEY STOP WAITING FOR RATES TO BOTTOM OUT COMMERCIAL REAL ESTATE REMAINED WEAK IN MOST BIG MARKETS VACANCY RATES ROSE IN MANHATTAN DURING THE PERIOD MANUFACTURING STRENGTHENED IN MOST DISTRICTS WITH SOME PICKUP IN EMPLOYMENT EXPECTED TO FOLLOW ORDERS FOR HEAVY DUTY TRUCKS FOR INSTANCE HAVE STRETCHED SOME INDUSTRY SUPPLIERS TO THEIR LIMITS THE CHICAGO REGION SAID VIGOROUS HOME SALES HAVE BOLSTERED DEMAND FOR CONSTRUCTION PRODUCTS IN THE BOSTON DALLAS MINNEAPOLIS AND ATLANTA DISTRICTS WHILE ATLANTA ALSO REPORTED A JUMP IN TEXTILE ORDERS RESULTING FROM HOME REFURBISHING THREE QUARTERS OF THE PHILADELPHIA DISTRICT MANUFACTURERS SURVEYED REPORTED SHIPMENTS AT A STEADY PACE OR QUOTE MOVING UP QUOTE AND MANY PLAN TO HIRE MORE WORKERS OVER THE NEXT SIX MONTHS THE BOSTON DISTRICT ESTIMATED THAT FOUR FIFTHS OF ITS MANUFACTURERS HAVE REDUCED EMPLOYMENT IN THE PAST YEAR BUT NOW EXPECT EMPLOYMENT TO STABILIZE THE NEW YORK REGION ALSO NOTED LAYOFFS FROM SOME LARGE MANUFACTURERS BOSTON STRONG SALES OF EXISTING HOMES AND SIZABLE GAINS IN NEW HOME CONSTRUCTION BOLSTERED THE ECONOMIC EXPANSION RETAIL MANUFACTURING AND RESIDENTIAL REAL ESTATE SECTORS ARE MODERATELY OPTIMISTIC ABOUT NINETEEN NINETY FOUR WHILE INSURANCE COMPANIES ARE STILL WARY RETAILERS ESPECIALLY IN SPECIALTY NICHES PLAN TO EXPAND STORES WHICH COULD LEAD TO MORE JOBS MIXED SALES MARKED MANUFACTURED GOODS EMPLOYMENT REMAINS STEADY OVERALL BUT SOME AIRLINES EXPECT FURTHER REDUCTIONS NEW YORK PLANNED LAYOFFS IN NEW YORK COULD DAMP OVERALL ECONOMIC IMPROVEMENT BUT THE OUTLOOK IS STILL SOMEWHAT MORE FAVORABLE AS VOLATILE UNEMPLOYMENT LEVELS IN NEW YORK AND NEW JERSEY HAVE LEVELED OFF RETAIL SALES SURGED IN DECEMBER OVERCOMING EARLIER SLUGGISHNESS THOUGH SLIM PROFIT MARGINS ARE EXPECTED DUE TO MASSIVE DISCOUNTING HIGH PRIMARY VACANCY RATES IN MANHATTAN ANCHORED OTHERWISE STABLE LEASING ACTIVITY IN OTHER PARTS OF THE CITY LENDING LEVELS WERE MIXED AS WAS OVERALL LOAN DEMAND PHILADELPHIA DESPITE INCREASED DEMAND FOR MANUFACTURED GOODS AND HIGHER THAN EXPECTED HOLIDAY RETAIL SALES BUSINESSES REMAIN CAUTIOUS FOR NINETEEN NINETY FOUR BANKERS ATTRIBUTED LENDING INCREASES TO SEASONAL ACTIVITY BUT ARE UPBEAT THAT GROWING CONSUMER CONFIDENCE WILL LEAD TO GREATER PERSONAL BORROWING CLEVELAND RETAIL SALES CONTINUE TO OUTPERFORM THE NATION UNEMPLOYMENT FELL JUST BELOW THE NATIONAL AVERAGE MODEST BUT CONSISTENT GAINS IN MANUFACTURING HAS STABILIZED CUTBACKS IN DEFENSE RELATED INDUSTRIES AS WELL AS WEAK EUROPEAN EXPORT MARKETS DOUBLE DIGIT DOMESTIC AUTO SALES LED JAPANESE MODELS SPURRED BY CONSUMER OPTIMISM MODEST PRICE INCREASES ON DOMESTIC MODELS AND FAVORABLE INTEREST RATES DEMAND FOR LOANS PARTICULARLY AUTO LOANS ROSE RICHMOND BAD WEATHER HURT CROPS BUT DIDN'T DETRACT FROM TOURISM AS HOTELS MOTELS AND RESORTS POSTED HIGHER WINTER BOOKINGS THAN IN NINETEEN NINETY TWO MANUFACTURING RETAIL AND HOME SALES IMPROVED THOUGH SOME PRICES FOR RAW MATERIALS WERE BEGINNING TO RISE RENEWED COMMERCIAL CONSTRUCTION MAY NOT LAST ATLANTA DESPITE FLAT APPAREL SALES RETAILERS REPORTED STRONG GAINS OVERALL LIFTED BY LAST MINUTE HOLIDAY VOLUME TOURISM ALSO INCREASED EXCEPT IN MIAMI WHERE IT IS SAID TO HAVE FALLEN BECAUSE OF CRIME DEFENSE CUTBACKS MAY BE MITIGATED BY CONVERSIONS OF OUTPUT TO CIVILIAN USE BUILDERS SCRAMBLED TO MATCH HIGHER DEMAND FOR NEW HOMES BUT THE SHORT SUPPLY OF SUBCONTRACTORS PUSHED UP WAGES PRICES FOR FINISHED GOODS REMAIN FLAT BUT MAY SOON RISE AS WAGE PRESSURES INCREASED LAST MONTH MIXED DEMAND FOR LOANS IS EXPECTED TO PICK UP AT THE END OF THE QUARTER CHICAGO RETAIL SALES IN LINE WITH EXPECTATIONS EXCEEDED THE NATIONAL AVERAGE AIDED IN PART BY INCREASED CREDIT CARD AND CHECK PURCHASES HOUSEWARES ELECTRONICS AND OTHER BIG TICKET ITEMS LED OVERALL SALES WHILE APPAREL SALES CONTINUED TO SAP GROWTH CONSISTENT GROWTH IN MANUFACTURING OVER THE PAST QUARTER HAS LED TO OPTIMISM FOR NINETEEN NINETY FOUR EVEN WITH TIGHT JAPANESE AND EUROPEAN COMPETITION IN DURABLE GOODS PRESSURE FROM SHARP RISES IN CORN AND SOYBEAN PRICES HAVE SHIELDED FARMERS FROM FLOOD LOSSES ST. LOUIS ECONOMIC ACTIVITY CONTINUES TO PICK UP BOOSTED BY UNSEASONABLY STRONG HOUSING STARTS MANUFACTURERS OF KITCHEN AND BATH FIXTURES CONSEQUENTLY POSTED INCREASED SALES AND EMPLOYMENT ADVERTISING AND GENERAL ECONOMIC GROWTH NOT DEEP DISCOUNTING PUSHED UP NONAPPAREL SALES WITH STRONG SALES GROWTH EXPECTED TO CONTINUE INTO NINETEEN NINETY FOUR JOB CREATION OUTPACED JOB LOSS EXPECTED TO BE A CONTINUING TREND A SHARP UPTURN IN CROP PRICES ESPECIALLY NEW RICE EXPORTS WILL INCREASE PLANTING MINNEAPOLIS CONSTRUCTION BOOMED IN THE REGION'S GROWING ECONOMY UNEMPLOYMENT HAS REMAINED LOWER THAN THE NATIONAL RATE WITH LITTLE PRESSURE ON WAGES WHILE THE MANUFACTURING RETAIL AND FOREST PRODUCTS SECTORS CONTINUE TO GROW AGRICULTURE REMAINS FLAT DUE TO POOR WEATHER KANSAS CITY STRONG HOUSING STARTS AND HOME SALES COMBINED WITH QUOTE MODERATELY HIGHER QUOTE RETAIL SALES CONTRIBUTE TO OVERALL MODERATE GROWTH OFFSETTING EFFECTS INCLUDE FLAT FARM INCOME AND A RECEDING ENERGY SECTOR FROM FALLING OIL PRICES WHILE BANK DEPOSITS WERE MIXED OVERALL LOAN DEMAND INCREASED DALLAS THE ECONOMY EXPANDED WITH GROWTH IN MANUFACTURING ORDERS PARTICULARLY CONSTRUCTION RELATED GOODS DUE TO INCREASED HOUSING CONSTRUCTION HIGHER DEMAND FOR COMPUTER RELATED ELECTRONICS OPENED THE DOOR FOR RECENT HIRING OVERDISCOUNTING IN DECEMBER LED TO MODERATE RETAIL SALES BUT ALSO LOWER THAN DESIRED INVENTORIES FALLING OIL PRICES HAVE REDUCED DRILLING DRY WEATHER DAMAGED WHEAT CROPS AND WEAKENED AGRICULTURAL CONDITIONS SAN FRANCISCO SIGNS OF SOLID ECONOMIC GROWTH IN THE REGION MISSED CALIFORNIA AGAIN DESPITE INDICATIONS OF MODEST IMPROVEMENT IN ITS BANKING INDUSTRY AND THE CENTRAL VALLEY'S SOLID HOLIDAY SALES THE AEROSPACE INDUSTRY CONTINUES TO SAP WESTERN WASHINGTON'S ECONOMY AS DOES LAGGING TOURISM IN HAWAII ELSEWHERE IN THE REGION RETAIL SALES ARE STRONG AND THE AGRICULTURAL OUTLOOK IS FAVORABLE REALESTATE AND MANUFACTURING ACTIVITY IS MIXED AND DECIDEDLY POOR IN CALIFORNIA DUE TO CONTINUING DEFENSE RELATED LAYOFFS AND WEAK COMMERCIAL LEASING W. H. AUDEN HAD IT EASY ALL HE HAD TO DO WAS WRITE SOME OF THE GREATEST VERSE OF THE TWENTIETH CENTURY EDWARD MENDELSON HAS THE JOB OF FIGURING OUT HOW TO PASS THOSE POEMS ON TO POSTERITY ACCURATELY IN IDEAL TEXTS CHOSEN FROM THE POET'S MANY VERSIONS EVEN THE SIMPLE MATTER OF A SEMICOLON CAN KEEP HIM UP NIGHTS QUOTE AUDEN SAID I LET MY FRIENDS DO MY PUNCTUATION FOR ME THEN HE GOT ANNOYED WHEN HIS FRIENDS CHANGED IT SAYS MR. MENDELSON WHO IS AUDEN'S LITERARY EXECUTOR YOU LOSE SLEEP OVER IT BUT YOU HAVE TO DECIDE ONE WAY OR ANOTHER LET ME REPHRASE THAT YOU HAVE TO USE YOUR JUDGMENT SINCE MR. MENDELSON HAS DEVOTED MOST OF HIS ADULT LIFE TO GETTING SOMEONE ELSE'S WORDS RIGHT IT'S NOT SURPRISING THAT HE TAKES A LOT OF CARE WITH HIS OWN TAPPED TO BE AUDEN'S LITERARY EXECUTOR AT THE TENDER AGE OF TWENTY SIX HE HAS SPENT HIS CAREER WRITING ABOUT AUDEN TEACHING AUDEN AND EDITING AUDEN NOW MR. MENDELSON IS IN THE MIDST OF EDITING A MASSIVE EIGHT VOLUME SERIES FOR PRINCETON UNIVERSITY PRESS THAT WILL BE THE DEFINITIVE EDITION OF AUDEN'S HUGE AND MULTIFARIOUS BODY OF WORK SO FAR MR. MENDELSON HAS EDITED AUDEN'S PLAYS SIX HUNDRED EIGHTY PAGES FIFTY FIVE DOLLARS AND LIBRETTI SEVEN HUNDRED FIFTY EIGHT PAGES FORTY NINE DOLLARS AND FIFTY CENTS THEY RETRIEVE MANY RARE AND PREVIOUSLY UNPUBLISHED FRAGMENTS OF AUDEN'S WRITING LYRICAL VERSE WRITTEN FOR BRITISH DOCUMENTARIES OF THE THIRTIES DRAMATIC COLLABORATIONS WITH CHRISTOPHER ISHERWOOD RADIO PLAYS AND FULL BLOWN LIBRETTI FOR BENJAMIN BRITTEN'S PAUL BUNYAN AND IGOR STRAVINSKY'S THE RAKE'S PROGRESS FEW IF ANY AUDEN FANS HAD READ OR EVEN KNEW ABOUT MUCH OF THIS MATERIAL UNTIL MR. MENDELSON DREDGED IT UP FROM DOZENS OF DARK LITERARY CORNERS HE FERRETED OUT NO LESS THAN SEVEN SOURCES FOR THE AUDEN ISHERWOOD DRAMA OF METAPHYSICAL ALPINISM QUOTE THE ASCENT OF F. SIX QUOTE INCLUDING A DOGEARED PROMPTBOOK FROM THE OLD VIC BRITTEN'S ORIGINAL MUSIC FOR AUDEN'S NINETEEN FORTY ONE RADIO PLAY THE ROCKING HORSE WINNER WAS LOST LOST THAT IS UNTIL MR. MENDELSON MANAGED TO LOCATE A BOOTLEGGED RECORDING THROUGH SEMICLANDESTINE CONNECTIONS BACKING UP HIS CRAFTY DETECTIVE WORK WITH LUCID SCHOLARSHIP HE PRESENTS READERS WITH TEXTS THAT ARE VERY CLOSE TO WHAT AUDEN'S ORIGINAL AUDIENCES HEARD RIGHT DOWN TO INAUDIBLE BUT INSOMNIA INDUCING MISTAKES IN PUNCTUATION AND SPELLING REASONING THAT THEY ARE ESSENTIAL TO AUDEN'S VERBAL RHYTHMS AND A COMPONENT OF HIS STYLE MR. MENDELSON HAS LEFT MANY OF THOSE MISTAKES INTACT HE HAS EVEN RESTORED SOME AUTHORIAL MISSPELLINGS AUDEN WAS ALSO AN OBSESSIVE REVISER MR. MENDELSON EVER A RESPECTER OF THE POET'S INTENTIONS AND QUIDDITIES HAS PUBLISHED EVERY KNOWN VARIATION ON THE TEXTS IN THE BACK OF EACH VOLUME ALONG WITH ESSAYS NOTES AND LETTERS LEAFING THROUGH THESE HANDSOMELY PRODUCED BOOKS A READER SEES WHAT AUDEN MEANT WHEN HE SAID OF MR. MENDELSON HE KNOWS MORE ABOUT ME THAN I KNOW MYSELF THAT WAS A LONG TIME AGO MR. MENDELSON HAS SPENT MORE THAN TWO DECADES DEEPENING THAT ACQUAINTANCE MAKING A LIFE FOR HIMSELF OUT OF AUDEN'S LIFE'S WORK IN HIS COMFORTABLE UPPER WEST SIDE APARTMENT NEAR COLUMBIA UNIVERSITY WHERE HE IS A PROFESSOR OF ENGLISH AND COMPARATIVE LITERATURE MR. MENDELSON RECENTLY TOOK A BREAK FROM EDITING THE THIRD PRINCETON VOLUME PROSE NINETEEN TWENTY SIX TO THIRTY EIGHT TO EXPLAIN HOW HE FELL DOWN THIS SCHOLARLY RABBIT HOLE QUOTE WHEN I WAS AN UNDERGRADUATE AND WROTE POEMS A TEACHER SAID YOU OUGHT TO TAKE A LOOK AT THE EARLY AUDEN QUOTE HE RECALLS STILL LOOKING TRIM AND BOYISH AT FORTY SEVEN WITH MORE THAN A GLIMMER OF THE BRAINY FORMER UNIVERSITY OF ROCHESTER STUDENT AND THAT WAS PRETTY MUCH THE END OF MY WRITING POETRY I WAS SO IMPRESSED NOT ONLY BY THE VERBAL POWER BUT THE INTELLIGENCE WITH WHICH HE UNDERSTOOD THE WORLD AS A COLLEGE SENIOR MR. MENDELSON PAID A VISIT TO AUDEN WHO HELD AFTERNOON OFFICE HOURS IN HIS EAST VILLAGE APARTMENT ALTHOUGH THE FUTURE AUDENOLOGIST WAS TOO TONGUE TIED TO SAY MUCH THE POET KINDLY TALKED AT HIM UNTIL THE VISIT WAS OVER HE HAD NO RECOLLECTION OF ME AFTERWARD BUT AUDEN WAS TO BECOME AN EVERMORE DOMINANT FIGURE IN MR. MENDELSON'S LIFE HE WROTE HIS DOCTORAL THESIS ON AUDEN'S POETRY AND AS A TWENTY FOUR YEAR OLD TEACHER AT YALE BEGAN COMPILING A BIBLIOGRAPHY OF AUDEN'S WORK WITH B. C. BLOOMFIELD A BRITISH SCHOLAR I HAD HEARD FROM OTHER PEOPLE THAT HE WANTED TO PUT TOGETHER A BOOK OF ESSAYS BUT CLAIMED HE DIDN'T REMEMBER WHAT HE'D WRITTEN MR. MENDELSON SAYS QUOTE PEOPLE TOLD HIM ABOUT A GRADUATE STUDENT WHO WAS GOING AROUND XEROXING EVERYTHING QUOTE WHEN AUDEN VISITED YALE MR. MENDELSON WAS ASSIGNED TO BE HIS CHAPERONE ON CAMPUS HE STEERED THE POET TO HIS COMPLETE COLLECTION OF THE ESSAYS LEAVING HIM IN HIS APARTMENT FOR SEVERAL HOURS TO BROWSE IN HIS FILES THE TWO BEGAN EXCHANGING LETTERS AND ABOUT A YEAR LATER AUDEN SENT HIM A CHECK FOR ONE HUNDRED FIFTY DOLLARS DEAR MR. MENDELSON HE WROTE I'VE COME TO THE CONCLUSION YOU SHOULD SELECT MY ARTICLES AND NOT I. HERE IS A CHECK FOR XEROXING WHEN MR. MENDELSON WAS WRAPPING UP WORK ON THE BOOK A FEW MONTHS LATER ANOTHER LETTER ARRIVED AT THE END AUDEN HAD WRITTEN P. S. WOULD YOU BE MY LITERARY EXECUTOR ON THE FACE OF IT THE TWO MEN COULDN'T HAVE BEEN MORE DIFFERENT AUDEN WAS A GAY MAN WHO BECAME A COMMITTED CHRISTIAN MR. MENDELSON A NATIVE NEW YORKER IS JEWISH AND HETEROSEXUAL HE IS NOW MARRIED AND HAS A TWO AND ONE HALF YEAR OLD SON THEY NEVER SOCIALIZED MUCH IN ONE OF THEIR MORE INTIMATE EXCHANGES THE POET SUGGESTED THAT MR. MENDELSON TRY A BRAND OF DAIRY CREAMER HE LIKED BUT AUDEN SAW IN THE YOUNGER MAN SOMEONE HE COULD TRUST TO DO THE RIGHT THING BY HIS WORK IN NINETEEN SEVENTY TWO A YEAR BEFORE AUDEN'S DEATH MR. MENDELSON PAID HIM A VISIT THEY DISCUSSED A NEW EDITION OF COLLECTED POEMS AUDEN WANTED TO PUBLISH FOR THE PAST TWENTY ONE YEARS MR. MENDELSON HAS DONE EXACTLY THAT ON AUDEN'S DEATH HIS FIRST TASK WAS TO PUBLISH A NOTICE ON BOTH SIDES OF THE ATLANTIC REQUESTING ANY FRIENDS WHO HAVE LETTERS FROM ME TO BURN THEM WHEN THEY'RE DONE WITH THEM AND ON NO ACCOUNT TO SHOW THEM TO ANYONE ELSE HE DID SO BUT DID HE BURN HIS OWN LETTERS FROM AUDEN NO OF COURSE NOT HE DECLARES IT'S SAFE TO ASSUME HE WILL NEVER BE DONE WITH THEM THE JOB OF EXECUTOR HAS DOVETAILED NEATLY WITH MR. MENDELSON'S OWN SCHOLARSHIP THE AUTHOR OF THE RESPECTED CRITICAL BOOK QUOTE EARLY AUDEN QUOTE HE IS NOW AT WORK ON QUOTE LATER AUDEN QUOTE THE TITLE OF EXECUTOR HAS BEEN THE KIND OF PASSPORT SCHOLARS DREAM OF EVEN WINNING HIM ENTREE TO LONDON'S SAINT JAMES PALACE WHERE GOVERNMENT FILES ABOUT AUDEN'S PLAYS VIEWED SUSPICIOUSLY IN THE MID NINETEEN THIRTIES FOR THEIR MOCKERY OF HITLER WERE KEPT I WENT UP IN MY RATTY SUIT HE SAYS IT WAS CERTAINLY THE NICEST FURNITURE ON WHICH I'VE EVER DONE RESEARCH TO PAY FOR HIS PLANE TICKETS TO AUDEN RELATED SITES HE REVIEWS COMPUTERS AND SOFTWARE FOR P. C. MAGAZINE WHERE HE IS A CONTRIBUTING EDITOR AND FOR VARIOUS LITERARY PUBLICATIONS IT HAS NO MORAL INTELLIGENCE HE SHRUGS OF THE WORK UNLIKE HIS NONCYBERNETIC RESEARCH ON AUDEN'S PROSE WHICH WILL FILL THE NEXT FOUR VOLUMES HE HAS SAVED THE HARDEST PART OF THE PRINCETON EDITION TWO VOLUMES OF POETRY WHICH WILL APPEAR EARLY IN THE NEXT MILLENNIUM FOR LAST AUDEN HEAVILY REVISED AND IN SOME CASES REPUDIATED POEMS AS DISHONEST YEARS AFTER HE HAD WRITTEN THEM ONE OF HIS MOST FAMOUS POEMS SEPTEMBER FIRST NINETEEN THIRTY NINE THE DATE HITLER INVADED POLAND ORIGINALLY ENDED WITH THE LINE WE MUST LOVE ONE ANOTHER OR DIE AUDEN CAME TO VIEW THAT LINE AS A PIECE OF FALSE RHETORIC AND DROPPED THE LAST STANZA IN THE SIXTIES HE DISOWNED THE POEM ALTOGETHER FOR THE FORTHCOMING EDITION MR. MENDELSON HAS DECIDED TO PRINT ALL THE POEMS IN THE VERSIONS THAT READERS FIRST ENCOUNTERED OR THE REVISED VERSIONS PUBLISHED SOON AFTER LATER REVISIONS WILL BE PRINTED IN THE BACK OF THE VOLUME THE VOLUMES WILL INCLUDE EVERYTHING FROM AUDEN'S JUVENILIA TO A FAMOUS PIECE OF NEVER ACKNOWLEDGED PORNOGRAPHY AS EVER THE CHALLENGE FOR MR. MENDELSON WILL BE TO CREATE THE BOOK THAT AUDEN HIMSELF AN ETERNAL AUDEN STANDING OUTSIDE OF TIME WOULD HAVE WANTED LOWELL M. FISHER A BOARD MEMBER SINCE NINETEEN NINETY WHO HAS BEEN SERVING AS INTERIM CHIEF EXECUTIVE OFFICER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS MAKER OF MEN'S AND BOYS' APPAREL HE SUCCEEDS CHARLES CAMPBELL WHO RESIGNED IN JULY YIELDS ON TAXABLE MONEY MARKET FUNDS WERE GENERALLY DOWN IN THE WEEK ENDED TUESDAY I. B. C. SLASH DONOGHUE'S AVERAGE SEVEN DAY COMPOUND YIELD ON TAXABLE FUNDS DECLINED TO TWO POINT SEVEN TWO PERCENT FROM TWO POINT SEVEN FIVE PERCENT ACCORDING TO MONEY FUND REPORT AN ASHLAND MASSACHUSETTS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVEN DAY SIMPLE YIELD ON TAXABLE FUNDS EASED TO TWO POINT SIX NINE PERCENT FROM TWO POINT SEVEN ONE PERCENT WHILE THE THIRTY DAY SIMPLE YIELD REMAINED AT TWO POINT SEVEN TWO PERCENT THE THIRTY DAY COMPOUND YIELD SLID TO TWO POINT SEVEN FIVE PERCENT FROM TWO POINT SEVEN SIX PERCENT ASSETS OF SIX HUNDRED THIRTY SEVEN TAXABLE FUNDS TWO MORE THAN THE PREVIOUS WEEK ROSE BY FOUR POINT SEVEN FIVE BILLION DOLLARS TO FOUR HUNDRED NINETY THREE POINT NINE THREE BILLION DOLLARS THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR TWO POINT EIGHT FOUR BILLION DOLLARS OF THE INFLOW INDIVIDUAL INVESTORS PUT IN ONE POINT NINE OH BILLION DOLLARS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE CHANGES IN YIELDS AND ASSETS TO SEASONAL ADJUSTMENTS QUOTE THIS SHOULD BE THE LAST WEEK FOR THESE SEASONAL CHANGES BRINGING THINGS BACK TO NORMAL QUOTE MR. FRANK SAID AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORT TERM CORPORATE I. O. U.S AND TREASURY BILLS REMAINED AT FIFTY NINE DAYS THE AVERAGE TAX EXEMPT SEVEN DAY COMPOUND YIELD EASED TO ONE POINT SIX EIGHT PERCENT FROM ONE POINT SEVEN FOUR PERCENT IN THE LATEST WEEK THE LATEST TAX FREE YIELD IS EQUIVALENT TO A TAXABLE TWO POINT SIX THREE PERCENT FOR SOMEONE PAYING THIRTY SIX PERCENT IN TAXES AND TO TWO POINT SEVEN EIGHT PERCENT FOR THOSE PAYING THIRTY NINE POINT SIX PERCENT MR. FRANK SAID THAT THE SCARCITY OF NEW ISSUES WAS RESPONSIBLE FOR THE DECLINE IN TAX EXEMPT YIELDS ASSETS OF THREE HUNDRED FORTY TAX EXEMPT FUNDS ONE MORE THAN LAST WEEK DECREASED BY THREE HUNDRED THIRTY TWO MILLION DOLLARS TO ONE HUNDRED ELEVEN POINT SIX EIGHT BILLION DOLLARS ACCORDING TO THE NEWSLETTER THE TAX FREE FUNDS' AVERAGE PORTFOLIO MATURITY REMAINED AT FIFTY EIGHT DAYS MONEY FUND REPORT IS PUBLISHED BY I. B. C. SLASH DONOGHUE INCORPORATED A SUBSIDIARY OF I. B. C. U. S. A. PUBLICATIONS INCORPORATED THOUGH THERE ARE CLEAR HINTS OF TROUBLE FOR HIM OVER THE LONG HAUL PRESIDENT CLINTON AT THE MOMENT IS DEFYING THE POLITICAL LAWS OF GRAVITY AFTER A MONTH OF NEGATIVE STORIES ABOUT HIS BUSINESS DEALINGS AND PERSONAL LIFE THAT SEEMED SURE TO DRAG DOWN HIS STANDING WITH THE PUBLIC MR. CLINTON'S APPROVAL RATING IS RISING IN A NEW WALL STREET JOURNAL SLASH N. B. C. NEWS POLL SIXTY PERCENT OF THOSE SURVEYED APPROVE OF THE JOB MR. CLINTON IS DOING AS PRESIDENT THAT'S UP FROM FIFTY SIX PERCENT IN A SURVEY TAKEN LAST MONTH JUST BEFORE A SPATE OF STORIES THAT RAISED QUESTIONS ABOUT MR. CLINTON'S INVESTMENT IN WHITEWATER DEVELOPMENT COMPANY AND HIS PERSONAL LIFE AS GOVERNOR OF ARKANSAS AND THE APPROVAL RATING IS A FULL TEN POINTS HIGHER THAN IT WAS JUST FOUR MONTHS AGO BY CONTRAST THIRTY ONE PERCENT SAY THEY DISAPPROVE OF MR. CLINTON'S JOB PERFORMANCE THE FINDINGS SUGGEST TWO IMPORTANT CHARACTERISTICS OF MR. CLINTON'S RELATIONSHIP WITH THE AMERICAN PEOPLE FIRST AMERICANS ARE BASING THEIR PERCEPTION OF THE PRESIDENT BY AND LARGE ON GENERAL ECONOMIC TRENDS AND AN OVERALL PERCEPTION OF HIS FOREIGN POLICY COMPETENCE AND SECOND THE PUBLIC SEEMS TO THINK STORIES ABOUT MR. CLINTON'S PAST LIFE HAVE ONLY LIMITED RELEVANCE TO HIS CURRENT PERFORMANCE QUOTE CLINTON IS DOING SIGNIFICANTLY BETTER QUOTE SAYS REPUBLICAN POLLSTER ROBERT TEETER WHO CONDUCTED THE JOURNAL SLASH N. B. C. SURVEY ALONG WITH DEMOCRATIC POLLSTER PETER HART WHAT HAS CAUSED THAT ARE A BETTER ECONOMY AND SOME FOREIGN POLICY SUCCESS BUT BOTH MESSRS TEETER AND HART POINT OUT THAT THE POLL SHOWS A CLOUD FLOATING ABOVE MR. CLINTON THOUGH THE BATTERING OF NEGATIVE STORIES HASN'T HURT PUBLIC VIEWS OF THE PRESIDENT'S JOB PERFORMANCE THEY CLEARLY HAVE ERODED AMERICANS' CONFIDENCE IN HIS TRUTHFULNESS AND HIS PERSONAL VALUES MOREOVER THOSE FEELINGS OPEN MR. CLINTON TO CRITICISM ON THE CHARACTER ISSUE WHICH FIGURED SO PROMINENTLY IN THE NINETEEN NINETY TWO PRESIDENTIAL CAMPAIGN AND SEEMS LIKELY TO CONTINUE TO DOG HIM WHEN ASKED TO RATE MR. CLINTON'S ETHICAL AND MORAL VALUES THIRTY THREE PERCENT OF THOSE SURVEYED NOW GIVE THE PRESIDENT GOOD MARKS THAT'S DOWN FROM FORTY THREE PERCENT JUST THREE MONTHS AGO AND FIFTY PERCENT AT THE OUTSET OF HIS ADMINISTRATION REPUBLICANS HAVE HINTED IN THE LAST FEW WEEKS THAT THEY EXPECT TO DIRECT THEIR CRITICISM OF THE PRESIDENT IN PRECISELY THIS AREA THE GENERAL QUESTION OF PERSONAL CREDIBILITY RATHER THAN AT THE DETAILS OF THE WHITEWATER CONTROVERSY REPUBLICAN NATIONAL COMMITTEE CHAIRMAN HALEY BARBOUR ASSERTED TO A GROUP OF REPORTERS LAST WEEK THAT CREDIBILITY IS THE LINCHPIN OF ANY OFFICE OF AUTHORITY AND REPUBLICAN NATIONAL COMMITTEE SPOKESMAN CHUCK GREENER REASSERTED YESTERDAY THAT THIS IS THE THING THAT WILL BE AN UNDERLYING CONCERN FOR QUITE SOME TIME FOR NOW THOUGH MR. CLINTON CAN BE CHEERED BY THE FACT THAT AMERICANS ARE GIVING HIM HIGHER MARKS ON HANDLING BOTH THE ECONOMY AND FOREIGN AFFAIRS PRECISELY HALF THOSE SURVEYED SAY THEY APPROVE OF HIS HANDLING OF ECONOMIC AFFAIRS A SIGN THAT PEOPLE ARE FEELING PRETTY GOOD ABOUT THE ECONOMY SAYS MR. HART BY CONTRAST JUST FORTY PERCENT APPROVED OF HIS HANDLING OF THE ECONOMY BACK IN OCTOBER AND THE PERCEPTION OF MR. CLINTON'S FOREIGN POLICY SKILLS CLEARLY WERE ENHANCED BY LAST WEEK'S TRIP TO WESTERN EUROPE AND RUSSIA THE SURVEY BEGUN JUST AS THAT WEEK LONG TRIP WAS ENDING FOUND THAT FIFTY THREE PERCENT APPROVE OF HIS HANDLING OF FOREIGN POLICY UP SHARPLY FROM THIRTY THREE PERCENT IN OCTOBER IN GENERAL THE SURVEY SUGGESTS THAT AMERICANS ARE MODERATELY CONCERNED WITH THE WHITEWATER AFFAIR IN WHICH QUESTIONS HAVE BEEN RAISED ABOUT THE CLINTONS' INVESTMENT IN THE REAL ESTATE DEVELOPMENT COMPANY AND THEIR INVOLVEMENT WITH A RELATED SAVINGS AND LOAN THAT WENT UNDER BUT IT SHOWS SIGNIFICANTLY LESS PUBLIC CONCERN ABOUT ALLEGATIONS LEVELED BY ARKANSAS STATE TROOPERS OF SEXUAL MISCONDUCT BY MR. CLINTON WHILE HE WAS GOVERNOR BY A SLIGHT MARGIN A PLURALITY OF AMERICANS SEEM INCLINED TO BELIEVE MR. CLINTON'S EXPLANATIONS OF HIS ROLE IN THE WHITEWATER FLAP THOSE SURVEYED WERE ASKED WHETHER THEY BELIEVE THE PRESIDENT'S CRITICS WHO SAY HE IS CONCEALING INFORMATION ABOUT HIS AND HIS WIFE'S INVOLVEMENT WITH WHITEWATER TO HIDE EMBARRASSING OR EVEN ILLEGAL BEHAVIOR OR MR. CLINTON WHO SAYS THAT HE SIMPLY LOST MONEY ON THE DEAL AND THAT ALL IMPORTANT FACTS ARE KNOWN BY A FORTY THREE PERCENT TO THIRTY SIX PERCENT MARGIN THOSE SURVEYED SAY THEY BELIEVE THE PRESIDENT IN FACT THERE ARE SIGNS IN THE SURVEY THAT THE PARAMOUNT ISSUE TO THE PUBLIC IS WHETHER MR. CLINTON IS TELLING THE TRUTH RATHER THAN THE DETAILS OF HIS INVOLVEMENT WITH WHITEWATER AMONG THOSE WHO CALL WHITEWATER AN IMPORTANT ISSUE FIFTY NINE PERCENT SAY THEY BELIEVE MR. CLINTON'S CRITICS WHILE JUST TWENTY ONE PERCENT SAY THEY BELIEVE THE PRESIDENT BUT OVERALL THREE QUARTERS OF THOSE SURVEYED SAY THE WHITEWATER STORY HASN'T AFFECTED THEIR OPINION OF MR. CLINTON WHILE TWENTY ONE PERCENT SAY IT HAS MADE THEIR OPINION OF HIM LESS FAVORABLE AND SIXTY ONE PERCENT SAY THAT IT IS UNNECESSARY TO FORM A SPECIAL CONGRESSIONAL PANEL TO LOOK INTO WHITEWATER NOW THAT MR. CLINTON HAS ASKED FOR A SPECIAL COUNSEL TO INVESTIGATE AMONG OTHER THINGS FINDINGS SUCH AS THOSE IN THE NEW SURVEY ARE BOUND TO RAISE QUESTIONS ABOUT THE MEDIA WHICH HAVE DEVOTED GREAT ATTENTION TO THE WHITEWATER AND STATE TROOPER STORIES WHICH THE PUBLIC SEEMS TO CONSIDER OF ONLY MODEST IMPORTANCE QUOTE THERE REALLY IS AN INSIDE THE BELTWAY MENTALITY AND IT DOES AFFECT THE PRESS JUST AS IT AFFECTS MEMBERS OF CONGRESS AND POLITICAL APPOINTEES IN THE EXECUTIVE BRANCH QUOTE SAYS STEPHEN HESS AN ANALYST OF POLITICS AND THE PRESS AT THE BROOKINGS INSTITUTION AND WE GET TERRIBLY INVOLVED IN TALKING TO EACH OTHER YOUR JANUARY FOURTH EDITORIAL QUOTE POSTAL BULLY QUOTE STRUCK HOME BOYD'S CITY DISPATCH FOUNDED IN NEW YORK CITY IN THE ONE THOUSAND EIGHT HUNDRED FORTIES AS ONE OF THE NATION'S FIRST PRIVATE POSTAL DELIVERY SERVICES WAS DRIVEN OUT OF THE POSTAL DELIVERY BUSINESS AS A RESULT OF THE PRIVATE EXPRESS STATUTES OF ONE THOUSAND EIGHT HUNDRED SEVENTY TWO BOYD'S ISSUED ITS OWN STAMPS HAD UNIFORMED EMPLOYEES AND INSTALLED POSTAL BOXES IN RETAIL BUSINESSES AROUND MANHATTAN FOR ONE PENNY YOU COULD BE ASSURED OF NEXT DAY DELIVERY BOYD'S CONNECTED WITH OTHER PRIVATE DELIVERY SERVICES UP AND DOWN THE EAST COAST AND WAS A HIGHLY REGARDED COMPETITOR TO THE POSTAL SERVICE SO OF COURSE IT WAS FORCED OUT OF THE POSTAL DELIVERY BUSINESS FORTUNATELY BOYD'S HAD DEVELOPED A SIDELINE OF PROVIDING MAILING LISTS TO FINANCIAL SERVICES COMPANIES AND FUND RAISING ORGANIZATIONS WHICH IT CONTINUES TO THIS DAY AS ONE OF THE OLDEST CONTINUOUSLY OPERATED COMPANIES IN AMERICA THE PUBLIC'S SHIFT TO USE OF FEDERAL EXPRESS U. P. S. FAXING E. MAIL ET CETERA RATHER THAN THE U. S. POSTAL SERVICE IS BORN OF NECESSITY THE U. S. P. S. WILL NOT BE ABLE TO FORCE BULLY THREATEN OR FINE THE PUBLIC INTO RETURNING TO THE POSTAL SERVICE'S FRUSTRATING INEFFICIENCIES NOW THAT THEY'VE EXPERIENCED THE CONSISTENTLY GOOD AND RELIABLE SERVICE OF THE PRIVATE CARRIERS THE U. S. P. S. WOULD BE BETTER ADVISED TO CONCENTRATE ITS ENERGY ON IMPROVING THE QUALITY OF ITS SERVICE RATHER THAN INTIMIDATING MAIL CLERKS U. S. T. INCORPORATED REPORTED AN EIGHT POINT SIX PERCENT INCREASE IN FOURTH QUARTER EARNINGS CITING SALES GAINS IN ITS MOIST SMOKELESS TOBACCO BUSINESS NET INCOME ROSE TO EIGHTY SIX POINT EIGHT MILLION DOLLARS OR FORTY ONE CENTS A SHARE FROM SEVENTY NINE POINT NINE MILLION DOLLARS OR THIRTY SIX CENTS A SHARE A YEAR EARLIER SALES ROSE SIX PERCENT TO TWO HUNDRED EIGHTY SIX POINT SEVEN MILLION DOLLARS FROM TWO HUNDRED SEVENTY ONE POINT ONE MILLION DOLLARS U. S. T. GREENWICH CONNECTICUT SAID DOMESTIC UNIT VOLUME FOR THE QUARTER WHICH INCLUDED ONE LESS SHIPPING DAY THAN LAST YEAR WAS DOWN SLIGHTLY MOIST TOBACCO PRODUCT SHIPMENTS WOULD HAVE INCREASED THREE PERCENT ON AN EQUIVALENT SHIPPING DAY BASIS FOR THE QUARTER THE COMPANY SAID FOR THE YEAR VOLUME INCREASED TWO POINT THREE PERCENT OR THREE POINT ONE PERCENT ON A SHIPPING EQUIVALENT BASIS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE U. S. T. SHARES CLOSED AT TWENTY EIGHT POINT ONE TWO FIVE DOLLARS DOWN FIFTY CENTS EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS BUT THE STOCK DROPPED BECAUSE OF A SLOWDOWN IN UNIT VOLUME FOR THE YEAR ACCORDING TO GARY BLACK AN ANALYST AT SANFORD C. BERNSTEIN AND COMPANY IN NEW YORK JAYARK CORPORATION APPROVED A BUYBACK OF FIVE HUNDRED THOUSAND COMMON SHARES THE COMPANY SAID IT MAY USE THE REPURCHASED STOCK IN CONNECTION WITH ITS EMPLOYEE STOCK OPTION PLAN OR OTHER USES JAYARK SAID THERE ARE SIX MILLION SEVEN HUNDRED FOUR THOUSAND EIGHT HUNDRED FORTY EIGHT SHARES OUTSTANDING AND AN ADDITIONAL ONE HUNDRED TWENTY EIGHT THOUSAND FOUR HUNDRED SHARES PREVIOUSLY REPURCHASED AND RETAINED IN THE TREASURY DRY GOODS WERE PHAR MOR'S BUSINESS BUT SOME OF ITS BOSSES HAD A TASTE FOR RAISIN COOKIES SCHEMERS IN THE RETAILER'S EXECUTIVE SUITE KEPT TWO SETS OF RECORDS AN OFFICIAL LEDGER THAT THEY SOMETIMES MANIPULATED WITH FALSE ENTRIES AND ANOTHER NICKNAMED THE QUOTE COOKIES QUOTE WHERE THEY KEPT TRACK OF THE FALSE ENTRIES CALLED QUOTE RAISINS QUOTE THEY WOULD REFER TO THEIR LEGERDEMAIN AS PUTTING RAISINS IN THE COOKIES IT'S BEEN KNOWN THAT PHAR MOR INCORPORATED HAD A SCANDAL BUT FEW SUSPECTED IT WAS QUITE THIS ELABORATE THE ONCE SOARING MIDWESTERN DISCOUNT RETAILER IS OPERATING IN BANKRUPTCY PROTECTION THESE DAYS AFTER DISCLOSING EIGHTEEN MONTHS AGO THAT IT WAS THE TARGET OF A FRAUD AND EMBEZZLEMENT SCHEME BY SOME OF ITS TOP EXECUTIVES AMID THREE INDICTMENTS AND TWO GUILTY PLEAS BY FORMER EXECUTIVES PHAR MOR HAS SLIMMED DOWN AND CONTINUED OPERATING WITH ITS UNCONVENTIONAL STRATEGY OF ULTRA LOW PRICES ON A JUMBLE OF MIX AND MATCH GOODS OFTEN HEAPED TO THE CEILING BUT NOW IT APPEARS THAT LOSSES TO PHAR MOR STEMMING FROM THE INTERNAL FRAUD TOTALED ONE BILLION DOLLARS DOUBLE PREVIOUS ESTIMATES IN FACT PHAR MOR A PRIVATE COMPANY THAT DREW SEVERAL BIG NAME INVESTORS THAT INVESTMENT BANKERS WERE CLAMORING TO TAKE PUBLIC AND THAT SAM WALTON ONCE CALLED THE RIVAL THAT MOST WORRIED HIM NEVER EARNED A PENNY OF PROFIT IN THE FIVE YEARS BEFORE IT FILED FOR CHAPTER ELEVEN IN AUGUST NINETEEN NINETY TWO MOREOVER CHAIRMAN AND CO FOUNDER DAVID SHAPIRA WHO HAS PORTRAYED HIMSELF AS UNAWARE OF A FRAUD LED BY HIS NOWINDICTED CO FOUNDER WAS HANDED RED FLAG WARNINGS OF CHICANERY YEARS BEFORE IT CAME TO LIGHT IN ONE CASE WHEN HIS GENERAL COUNSEL GAVE HIM A MEMO WARNING OF INADEQUATE FINANCIAL CONTROLS AND CONFLICTS OF INTEREST INVOLVING A TOP EXECUTIVE AND A DIRECTOR MR. SHAPIRA TOLD HER TO RIP IT UP ALL IN ALL A PICTURE EMERGES FROM INTERVIEWS INDICTMENTS AND NOW A COURT ORDERED REPORT OF PHAR MOR AS A THICKET OF CONFLICTS OF INTEREST CORPORATE NEGLIGENCE AND OUTRIGHT CORRUPTION FOR SIX YEARS SOME OFFICIALS SEEMINGLY USED THE COMPANY AS THEIR PERSONAL PLAYTHING FALSIFYING FINANCIAL LEDGERS AND ALLEGEDLY RAIDING COMPANY COFFERS THEIR EXCESSES EXTENDED TO HIRING CHEERLEADERS IN HOT PANTS TO ESCORT THEM AROUND LAS VEGAS ACCORDING TO ALLEGATIONS IN THE REPORT BY COURT APPOINTED EXAMINER JAY ALIX WHO ALONG WITH LAWYERS TOOK DEPOSITIONS AND SUBPOENAED DOCUMENTS FOR NEARLY A YEAR AMONG OTHER THINGS HIS TWO VOLUME REPORT SAYS THAT SEVERAL DIRECTORS INCLUDING CHAIRMAN SHAPIRA EXERCISED STOCK OPTIONS AFTER THEIR EXPIRATION DATE BY SIGNING BACKDATED PROMISSORY NOTES SOME OF THOSE SHARES THEY SOLD BACK TO THE COMPANY ELEVEN MONTHS LATER AT A SUBSTANTIAL PROFIT ACCORDING TO THE REPORT WHICH WAS SUBMITTED YESTERDAY TO U. S. BANKRUPTCY JUDGE WILLIAM T. BODOH IN YOUNGSTOWN CHAIRMAN SHAPIRA ASKED IF HE DIDN'T HAVE REASON TO SUSPECT FRAUD WELL BEFORE IT WAS REVEALED IN MID NINETEEN NINETY TWO SAYS THAT ALL ALONG WE GOT CONSISTENT AUDITS AND UNQUALIFIED FINANCIAL STATEMENTS FROM EXTREMELY QUALIFIED ACCOUNTANTS THERE WERE NUMEROUS DUE DILIGENCES BY SOME OF THE MOST SOPHISTICATED INVESTORS EVERYONE CAME TO THE SAME CONCLUSION THAT THIS WAS A SOUND COMPANY GROWING QUICKLY HE ADDS THAT OBVIOUSLY THIS IS A DISASTER BUT I NEVER SAW ANYTHING TAKEN IN CONTEXT OF ALL THE POSITIVE INFORMATION THAT GAVE ME THE SLIGHTEST HINT THE OPTIONS MANEUVER HE SAYS WAS PROPERLY DONE IN CONSULTATION WITH LAWYERS AND ACCOUNTANTS THE FACT IS THAT WHAT WE WERE DOING WAS INVESTING MONEY DIRECTLY INTO PHAR MOR WE HAD NO IDEA WHATSOEVER THAT WE COULD SELL THE STOCK QUOTE BACK TO THE COMPANY LATER PHAR MOR'S TAILSPIN BEGAN EIGHTEEN MONTHS AGO WHEN THE GROWING RETAILER DISCLOSED THAT IT APPARENTLY WAS THE TARGET OF FRAUD AND EMBEZZLEMENT MASTERMINDED BY THE COMPANY'S THEN PRESIDENT MICHAEL I. MICKEY MONUS PHAR MOR'S CO FOUNDER MR. MONUS HAS SINCE BEEN INDICTED ON ONE HUNDRED TWENTY NINE FEDERAL COUNTS PLEADED NOT GUILTY AND FACES TRIAL FEBRUARY FOURTEENTH IN CLEVELAND A FOUNDER OF THE NOW DEFUNCT WORLD BASKETBALL LEAGUE AND ONETIME INVESTOR IN THE COLORADO ROCKIES BASEBALL TEAM HE IS ACCUSED AMONG OTHER THINGS OF DIVERTING ABOUT FIFTEEN MILLION DOLLARS FROM PHAR MOR MUCH OF IT TO PROP UP THE FAILING LEAGUE FORMER CHIEF FINANCIAL OFFICER PATRICK FINN AND JEFFREY WALLEY WHO WAS VICE PRESIDENT OF FINANCE ARE COOPERATING WITH AUTHORITIES AND HAVE PLEADED GUILTY TO FEDERAL CHARGES JOHN D. SAMMON AN ASSISTANT U. S. ATTORNEY IN CLEVELAND SAYS THAT THE INVESTIGATION IS CONTINUING MR. MONUS'S POSITION IS THAT THE FRAUD WAS COMMITTED UNBEKNOWNST TO HIM BY MR. FINN AND PEOPLE WHO REPORTED TO MR. FINN SAYS HIS ATTORNEY RICHARD GOLDBERG WHEN MR. MONUS STARTED FINDING IRREGULARITIES AROUND JUNE NINETEEN NINETY TWO HE COMMENCED HIS OWN INVESTIGATION MR. GOLDBERG SAYS AND WAS CONDUCTING THAT PROBE WHEN MR. SHAPIRA HELD A NEWS CONFERENCE TO DISCLOSE THE FRAUD AND ACCUSED MR. MONUS OF SPEARHEADING IT PHAR MOR DIRECTORS AND OFFICERS FACE LAWSUITS AS DOES GIANT EAGLE INCORPORATED A SUPERMARKET CHAIN PARTLY OWNED BY MR. SHAPIRA AND SEVERAL DIRECTORS GIANT EAGLE HAD A THIRTY EIGHT POINT THREE PERCENT STAKE IN PHAR MOR WHEN THE DISCOUNT CHAIN FILED FOR CHAPTER ELEVEN ACCORDING TO THE ALIX REPORT CERTAIN PHAR MOR EXECUTIVES USED FINANCIAL STATEMENTS SHOWING HEALTHY MARGINS AND PROFITS TO OBTAIN MORE THAN ONE BILLION DOLLARS OF CREDIT AS WELL AS CAPITAL FOR THE COMPANY FROM INVESTORS THAT INCLUDED SEARS ROEBUCK AND COMPANY WESTINGHOUSE ELECTRIC CORPORATION MALL DEVELOPER EDWARD DEBARTOLO SENIOR AND CORPORATE PARTNERS AN AFFILIATE OF LAZARD FRERES BUT PHAR MOR ACTUALLY HAD TWO HUNDRED THIRTY EIGHT MILLION DOLLARS IN PRETAX LOSSES IN NINETEEN NINETY TWO ALONE ACCORDING TO THE ALIX REPORT SHORTLY AFTER DISCLOSING THE APPARENT FRAUD PHAR MOR DISMISSED ITS AUDITORS COOPERS AND LYBRAND COOPERS'S POSITION IS THAT IT TOO WAS A TARGET OF THE FRAUD IT IS SUING PHAR MOR AND PHAR MOR IS SUING IT MR. ALIX SAYS THAT HE DISCOVERED NOTHING WHICH INDICATES DAVID SHAPIRA KNEW OF OR PARTICIPATED IN THE FRAUD STILL WHILE PHAR MOR WOWED INVESTORS DONALD ROBINSON A FORMER PHAR MOR DIRECTOR RAISED QUESTIONS AS LONG AGO AS NINETEEN EIGHTY EIGHT ABOUT POSSIBLE CONFLICTS BETWEEN MICKEY MONUS'S DUTIES AT PHAR MOR AND HIS INTERESTS IN SUPPLIERS THE BOARD ASKED ITS OUTSIDE FINANCIAL ADVISER TO LOOK INTO IT MR. SHAPIRA SAYS THIS WAS QUOTE A RED FLAG QUOTE AND THAT THE BOARD ASKED MR. MONUS AND HIS FATHER NATHAN WHO WAS A DIRECTOR TO DISCLOSE ALL OUTSIDE INTERESTS AND SELL ANY THAT POSED CONFLICTS ONLY LATER MR. SHAPIRA ADDS DID HE LEARN THAT THE MONUSES HAD DISCLOSED ONLY SOME OF THEIR OUTSIDE INTERESTS ANOTHER FLAG WENT UP IN NOVEMBER NINETEEN NINETY A FINANCE STAFFER WHO WAS APPARENTLY IN ON THE FRAUD ACCIDENTALLY SENT MR. SHAPIRA AN ACCURATE FINANCIAL REPORT SHOWING DEEP LOSSES ACCORDING TO FEDERAL INDICTMENTS AND THE ALIX REPORT MR. SHAPIRA SUMMONED C. F. O. MR. FINN TO PITTSBURGH WHERE THE CHAIRMAN CARRIED OUT HIS OTHER ROLE AS CHIEF EXECUTIVE OF GIANT EAGLE MR. FINN TOLD EXAMINER MR. ALIX IN A DEPOSITION THAT HE CONVINCED MR. SHAPIRA THE REPORT WAS ONLY PRELIMINARY MR. SHAPIRA SAYS HE DOESN'T REMEMBER THE INCIDENT BUT SPEAKING HYPOTHETICALLY I GOT REPORTS ABOUT PHAR MOR EVERY DAY SAY ONE DAY A REPORT COMES THAT IS INCONSISTENT WITH ALL THE OTHER INFORMATION I'VE GOTTEN I CALL UP THE CHIEF FINANCIAL OFFICER AND SAY WHAT'S THE MATTER AND HE GIVES A REASONABLE EXPLANATION THAT I ACCEPT IS THAT A FLAG THEN IN JUNE NINETEEN NINETY ONE ABOUT A YEAR BEFORE MR. SHAPIRA SAYS HE LEARNED OF THE FRAUD HE GOT A MEMO FROM PHAR MOR GENERAL COUNSEL CHARITY IMBRIE RAISING SERIOUS QUESTIONS THE MEMO WHICH PHAR MOR FOUGHT TO KEEP AWAY FROM THE COURT APPOINTED EXAMINER WAS FIRST MADE PUBLIC YESTERDAY AS PART OF HIS REPORT MS. IMBRIE'S MEMO ASKED WHETHER PHAR MOR HAD PAID FOR IMPROVEMENTS TO A VIDEO STUDIO PART OWNED BY MICKEY MONUS AND WHETHER THE RETAILER WAS USING INADEQUATE TELEPHONE EQUIPMENT BECAUSE OF NATHAN MONUS'S INTEREST IN A PHONE LEASING CONCERN THE MEMO QUESTIONED WHY PHAR MOR STORES WERE SELLING SPORTS CLOTHES FROM THE WORLD BASKETBALL LEAGUE AND THE COLORADO ROCKIES IT EXPRESSED CONCERN THAT THE COMPANY WAS PRESSURING SUPPLIERS TO SPONSOR THE BASKETBALL LEAGUE AND THAT PHAR MOR EMPLOYEES WERE WORKING ON THE MONUSES' PRIVATE VENTURES ON COMPANY TIME MS. IMBRIE WROTE THAT PHAR MOR LACKED ADEQUATE CONTROLS ON CASH DISTRIBUTION AND EMPLOYEE BUSINESS EXPENSES AND FACED A CONSTANT CASH FLOW PROBLEM THAT HAD VENDORS FURIOUS ABOUT LATE PAYMENT DESCRIBING MICKEY MONUS'S BEHAVIOR AT A REAL ESTATE CONVENTION IN LAS VEGAS MS. IMBRIE WROTE HE IS PUTTING TOGETHER THE ALL AMERICAN CHEERLEADERS FOR THE WBL TWO OF THE CHEERLEADERS SERVED AS OUR HOSTESSES IN LAS VEGAS THEY BOTH WORE HOT PANTS AND ONE SPORTED AN ANKLE TATTOO SHE ALSO SUGGESTED PHAR MOR WAS LIVING BEYOND ITS MEANS QUESTIONING WHY THE COMPANY WAS ORDERING THIRTY THOUSAND DOLLARS WORTH OF NICOLE MILLER TIES SUPPOSEDLY TO BE GIVEN AWAY AT PHAR MOR SPORTING EVENTS SUCH AS THE GOLF AND TENNIS TOURNAMENTS THE MEMO'S LAST PAGE CONTAINS HANDWRITTEN NOTES MS. IMBRIE TOLD COURT EXAMINER MR. ALIX THAT SHE WROTE AFTER MEETING WITH MR. SHAPIRA QUOTE MET JUNE FOURTH NINETEEN NINETY ONE WITH DAVID GAVE HIM THIS MEMO HE ASKED ME TO RIP UP ALL COPIES HE RIPPED UP THE ONE I GAVE HIM SAID HE WAS AWARE OF MOST OF THE ITEMS LISTED IN THIS MEMO SAID IT WAS PARTICULARLY IMPORTANT TO RIP IT UP NOW BECAUSE OF PENDING FINANCING SLASH STOCK SALE WITH C. P. C. P. MEANT CORPORATE PARTNERS THE LAZARD AFFILIATE MS. IMBRIE DIDN'T DESTROY HER COPY OF THE MEMO MR. SHAPIRA SAYS HE TOLD HER TO RIP THE MEMO UP BECAUSE THERE ARE STATEMENTS IN IT WHICH ARE DEFAMATORY AND BLATANTLY UNTRUE I DON'T THINK DOCUMENTS LIKE THAT SHOULD BE PART OF THE CORPORATE RECORD BUT I TOLD CHARITY TO MAKE SURE CONFLICTS WERE DISCLOSED TO CORPORATE PARTNERS CORPORATE PARTNERS DECLINES TO COMMENT A PERSON CLOSE TO THE INVESTMENT FUND SAYS THAT IT WASN'T TOLD ABOUT MONUS OUTSIDE INTERESTS DETAILED IN THE MEMO AND ABOUT SPORTS APPAREL LINKED TO MR. MONUS'S TEAMS BEING SOLD IN PHAR MOR STORES AMONG OTHER THINGS HAD THE IMBRIE MEMO OR ITS CONTENTS BEEN DISCLOSED TO CORPORATE PARTNERS IT WOULDN'T HAVE INVESTED IN PHAR MOR THIS PERSON CONTENDS MR. SHAPIRA SAYS HE WAS TOLD PHAR MOR HADN'T PAID FOR RENOVATIONS TO THE MONUS VIDEO STUDIO HE SAYS THERE WAS NOTHING IMPROPER ABOUT USING PHONE EQUIPMENT FROM A LEASING COMPANY PARTLY OWNED BY NATHAN MONUS NOR ABOUT SELLING SPORTS CLOTHES FROM THE WORLD BASKETBALL LEAGUE AND THE COLORADO ROCKIES REGARDING BUSINESS EXPENSES I THOUGHT THAT TO HAVE A SYSTEM WHERE ALL EXPENSES WERE APPROVED BY THE C. F. O. WAS AN EXTRA SAFEGUARD I DO FEEL STUPID ABOUT IT NOW THAT I WAS TAKEN IN BY THESE GUYS AS FOR MR. MONUS'S BEHAVIOR IN LAS VEGAS MR. SHAPIRA SAYS QUOTE I FELT MICKEY WAS A TRUE MERCHANDISING GENIUS AS DID EVERYBODY ELSE BUT SOME PEOPLE FELT HE WAS OBNOXIOUS AND HE HAD A VERY HIGH LIFESTYLE QUOTE SO DO YOU FIRE HIM AND RISK ALL THIS SHAREHOLDER VALUE MEANWHILE FROM NINETEEN EIGHTY SIX OR NINETEEN EIGHTY SEVEN TO NINETEEN NINETY TWO MICKEY MONUS AND SOME UNDERLINGS OVERSTATED INVENTORY LEVELS AND OTHER ASSETS AND UNDERSTATED LIABILITIES AND OTHER EXPENSES ACCORDING TO THE INDICTMENT AND TO PHAR MOR THIS ENABLED THEM TO DISGUISE SHRINKING PROFIT MARGINS AND JUSTIFY THEIR CLAIMS TO PERFORMANCE BASED PAY WHILE MAINTAINING VITAL ACCESS TO CAPITAL AND CREDIT MARKETS AND A CHANCE AT SOMEDAY GOING PUBLIC AS PHAR MOR'S FINANCES DETERIORATED THEY RELIED ON PAYMENTS FROM SUPPLIERS TO HIDE LOSSES MANUFACTURERS RANGING FROM COCA COLA ENTERPRISES INCORPORATED TO FUJI PHOTO FILM COMPANY TO GIBSON GREETINGS INCORPORATED PAID A TOTAL OF ONE HUNDRED THIRTY EIGHT MILLION DOLLARS FROM NINETEEN EIGHTY EIGHT TO NINETEEN NINETY TWO IN EXCHANGE FOR PHAR MOR'S PROMISE NOT TO DEAL WITH RIVAL BRANDS AN UNUSUAL BUT NOT ILLEGAL PRACTICE IN ADDITION PHAR MOR FUNDS WERE DIVERTED TO HELP PAY FOR THE CONSTRUCTION OF MICKEY MONUS'S SHOWY YOUNGSTOWN MANSION AND SECURITY NEEDS A TOTAL OF ONE HUNDRED EIGHTY THOUSAND NINE HUNDRED TWENTY FIVE DOLLARS ACCORDING TO THE ALIX REPORT HIS FATHER THEN DIRECTOR NATHAN MONUS RECEIVED SIXTEEN THOUSAND NINE HUNDRED NINETY DOLLARS FROM PHAR MOR TO PAY FOR MEALS AT THE PALM BEACH COUNTRY CLUB NATHAN MONUS'S ATTORNEYS DECLINE TO COMMENT UNTIL THEY HAVE SEEN A COPY OF THE ALIX REPORT THE PRIVATELY HELD PHAR MOR ALSO BOUGHT FROM DOZENS OF VENDORS LINKED TO PHAR MOR EXECUTIVES AND DIRECTORS FOR INSTANCE PHAR MOR BOUGHT COSTUME JEWELRY FROM A YOUNGSTOWN CONCERN CALLED JEWELRY NINETY WHICH HAD PURCHASED THE JEWELRY FROM A NEW YORK WHOLESALER MONUS BUSINESS ASSOCIATE DAVID KARZMER OWNED JEWELRY NINETY AND NATHAN MONUS WAS A PAID CONSULTANT TO THE FIRM FOR TWO YEARS RECEIVING THREE HUNDRED FIFTY FOUR THOUSAND SEVEN HUNDRED FIFTY FOUR DOLLARS FOR JUST SIX MONTHS IN NINETEEN NINETY TWO THE ALIX REPORT SAYS IF PHAR MOR HAD BOUGHT DIRECTLY FROM THE WHOLESALER INSTEAD OF GOING THROUGH JEWELRY NINETY IT WOULD HAVE SAVED TWO POINT ONE MILLION DOLLARS THE REPORT NOTES ADDING THAT OTHER DIRECTORS DIDN'T KNOW ABOUT MR. MONUS'S CONSULTING ARRANGEMENT WITH JEWELRY NINETY AND WITH SEVERAL OTHER FIRMS MR. SHAPIRA SAYS HE AND THE COMPANY DIDN'T KNOW ABOUT THE JEWELRY NINETY SITUATION UNTIL AFTER THE FRAUD WAS DISCLOSED IN ANOTHER CASE PHAR MOR SOLD A STAKE IN A COMPANY PART OWNED BY MICKEY MONUS STROUSS BUILDING ASSOCIATES TO A NEWLY FORMED FIRM CONTROLLED BY SOME PHAR MOR DIRECTORS AND SHAREHOLDERS HAD PHAR MOR RETAINED ITS INVESTMENT IN STROUSS IT WOULD HAVE EARNED A SUBSTANTIAL RETURN THE ALIX REPORT SAYS ON THE OTHER HAND CERTAIN PHAR MOR SHAREHOLDERS AND KEY EXECUTIVES HAVE PERSONALLY REALIZED EXTRAORDINARY RETURNS ON THEIR INVESTMENT IN STROUSS BUILDING ASSOCIATES MR. SHAPIRA SAYS IT IS COMMON FOR COMPANIES TO SET UP SUCH ARRANGEMENTS TO BENEFIT SHAREHOLDERS THE ALIX REPORT ALSO DESCRIBES HOW MR. SHAPIRA AND FOUR OTHER DIRECTORS EXERCISED EXPIRED STOCK OPTIONS IN SEPTEMBER NINETEEN NINETY THROUGH THE USE OF PROMISSORY NOTES EXECUTED AFTER THE EXPIRATION DATE BUT DATED PRIOR TO SUCH DATE THE FOLLOWING JUNE CORPORATE PARTNERS INVESTED TWO HUNDRED MILLION DOLLARS IN PHAR MOR PART OF IT EARMARKED FOR STOCK BUYBACKS FROM INSIDERS SEVERAL DIRECTORS INCLUDING MR. SHAPIRA TENDERED SOME SHARES IN AUGUST MR. SHAPIRA FOR INSTANCE RECEIVED TWO POINT ONE MILLION DOLLARS FOR STOCK HE CASHED IN AND NATHAN MONUS RECEIVED FOUR HUNDRED EIGHTY EIGHT THOUSAND EIGHT HUNDRED DOLLARS FOR STOCK HE TENDERED AT THE TIME THE ALIX REPORT SAYS MR. SHAPIRA SAYS DIRECTORS HAD BEEN TOLD BY ADVISERS THAT THEY COULD EXERCISE THE OPTIONS AND THAT IT WAS PERFECTLY LEGAL IT TOOK AN OUTSIDE SHAREHOLDER MR. DEBARTOLO TO RAISE THE QUESTIONS THAT UNCOVERED THE FRAUD ALLEGEDLY LED BY MICKEY MONUS EIGHTEEN MONTHS AGO A YOUNGSTOWN TRAVEL AGENT TOLD MR. DEBARTOLO THAT A PHAR MOR UNIT HAD MADE AN EIGHTY THOUSAND DOLLAR PAYMENT TO COVER A DELINQUENT WORLD BASKETBALL LEAGUE ACCOUNT ACCORDING TO THE ALIX REPORT MR. DEBARTOLO PASSED THAT INFORMATION TO DANIEL SHAPIRA A BROTHER OF DAVID SHAPIRA AND OUTSIDE COUNSEL TO PHAR MOR HE TOLD DAVID WHO BEGAN AN INTERNAL INVESTIGATION AND SOON FIRED MICKEY MONUS AND MR. FINN MR. MONUS WAS A FRIEND AS WELL AS BUSINESS PARTNER TO THE SHAPIRA BROTHERS DAN AND MICKEY HAD TRAVELED TWICE TO ATLANTIC CITY ONCE TO SEE MIKE TYSON FIGHT ANOTHER TIME TO SEE WRESTLEMANIA ANOTHER SHAPIRA BROTHER RALPH HAD HELPED MR. MONUS HIRE WORLD BASKETBALL LEAGUE CHEERLEADERS ACCORDING TO THE ALIX REPORT ONCE MR. MONUS WAS ACCUSED OF FRAUD HOWEVER HE BECAME PERSONA NON GRATA AND WAS FIRED THE MONUS FAMILY OWNS ABOUT TWO POINT NINE PERCENT OF PHAR MOR TODAY PHAR MOR IS STRIVING TO BUILD A PROFITABLE BUSINESS FROM THE RUBBLE WITH CREDITORS WARRING OVER WHETHER IT IS HEALTHY ENOUGH TO EMERGE FROM BANKRUPTCY THE COMPANY WHICH HAS BEGUN TURNING AN OPERATING PROFIT INTENDS TO SUBMIT A BUSINESS PLAN TO CREDITORS IN JUNE AND SAYS IT COULD EMERGE FROM BANKRUPTCY AS A PUBLIC COMPANY AS EARLY AS SEPTEMBER PHAR MOR HAS SLASHED OVERHEAD AND DISTRIBUTION COSTS AND CLOSED ITS WEAKEST STORES LEAVING IT WITH ABOUT HALF OF THE THREE HUNDRED OR SO IT ONCE HAD WE'VE IMPROVED OUR MARGINS BY THREE PERCENTAGE POINTS SAYS ANTONIO ALVAREZ A TURNAROUND EXPERT WHO WAS NAMED CHIEF EXECUTIVE AFTER THE FRAUD CAME TO LIGHT STORES LOOK PRETTY MUCH LIKE IN THE PREBANKRUPTCY DAYS WITH PYRAMIDS OF DEEPLY DISCOUNTED GOODS IN A HYBRID DRUGSTORE AND MASS MERCHANDISE SETTING THIS WORRIES SOME TRADE CREDITORS WHO WONDER IF IT IS WISE TO COUNT ON A STRATEGY THAT APPARENTLY NEVER REALLY WORKED THEY ALSO WORRY ABOUT THE CURRENT HARSH RETAILING ENVIRONMENT IN WHICH EVEN SOME STRONG RETAILERS LIKE RITE AID ARE SHUTTERING STORES MEANWHILE PHAR MOR SHAREHOLDERS EXECUTIVES AND DIRECTORS MANY OF THEM RELATIVES OLD FRIENDS AND BUSINESS PARTNERS ARE AT WAR WITH ONE ANOTHER IN THE COURTS AND AT SOCIAL GATHERINGS IN PITTSBURGH AND YOUNGSTOWN THE SITUATION HAS CREATED RIFTS IN ONCE TIGHTKNIT FAMILIES CARDIOLOGIST RICHARD ROSENBLOOM FOR INSTANCE NAMED AN UNCLE PHAR MOR DIRECTOR IRWIN PORTER IN A CLASS ACTION SHAREHOLDER SUIT DOCTOR ROSENBLOOM WHOSE GRANDFATHER CO FOUNDED THE GIANT EAGLE CHAIN THAT FORMED PHAR MOR ALSO SAW THE VALUE OF HIS GIANT EAGLE SHARE SHRINK AS A RESULT OF PHAR MOR'S COLLAPSE QUOTE WHEN I FIRST REALIZED WHAT HAPPENED QUOTE SAYS DOCTOR ROSENBLOOM QUOTE I WENT THROUGH INCREDIBLE RAGE AT HAVING THE PEOPLE I LOVED INVOLVED IN THIS NOW I'M JUST LEFT WITH SADNESS MONUS WAS ALSO ON THE BOARD AT THAT TIME GROWING OPTIMISM ABOUT IMMINENT APPROVAL OF POLITICAL REFORM SPARKED A RALLY IN JAPANESE STOCKS WEDNESDAY PULLING THE COUNTRY'S GIANT INSTITUTIONAL INVESTORS INTO THE MARKET THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WEDNESDAY CLOSED ABOVE THE PSYCHOLOGICALLY IMPORTANT BARRIER OF NINETEEN THOUSAND FOR THE FIRST TIME SINCE NOVEMBER SECOND RISING FIVE HUNDRED TWENTY FOUR POINT EIGHT FIVE POINTS OR TWO POINT EIGHT PERCENT TO NINETEEN THOUSAND THIRTY NINE POINT FOUR OH IN TRADING THURSDAY THE NIKKEI INDEX ROSE FOURTEEN POINT FIVE ONE POINTS TO CLOSE THE MORNING SESISON AT NINETEEN THOUSAND FIFTY THREE POINT NINE ONE WEDNESDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT FOUR HUNDRED MILLION SHARES UP FROM TWO HUNDRED EIGHTY FIVE POINT FIVE MILLION SHARES A DAY EARLIER GAINERS OVER WHELMED DECLINERS NINE HUNDRED THIRTY THREE TO ONE HUNDRED THIRTY SIX THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES JUMPED TWENTY NINE POINT SEVEN SIX POINTS OR TWO PERCENT TO ONE THOUSAND FIVE HUNDRED FORTY ONE POINT ONE FIVE POLITICAL PARALYSIS HAD DRAGGED STOCKS DOWN IN RECENT MONTHS AS POLITICIANS HAGGLED OVER REFORMS WHILE IGNORING MEASURES TO END JAPAN'S RECESSION BUT HOPES WERE RISING THAT ONE WAY OR ANOTHER PRIME MINISTER MORIHIRO HOSOKAWA WILL COMPLETE POLITICAL REFORM AND CONCENTRATE SOON ON PASSAGE OF MEASURES TO BOOST ECO NOMIC GROWTH IN JAPAN SUCH MEASURES INCLUDING A TAX CUT HAVE BEEN WIDELY ANTICIPATED FOR MONTHS THE BILLS MOVED ONE STEP CLOSER TO PASSAGE THURSDAY WITH APPROVAL BY THE REFORM COMMITTEE OF THE UPPER HOUSE THE NIKKEI THIS YEAR HAS RISEN NINE POINT THREE PERCENT ON THE GROWING BELIEF THAT JAPAN'S PROLONGED ECONOMIC SLUMP CAN'T GET ANY WORSE AND THAT THE GOVERNMENT WILL LEAK SPECIFIC PUMP PRIMING MEASURES ANY DAY NOW BUT JAPAN'S LARGEST INVESTORS THE NATION'S GIANT BANKS AND INSURERS HAVE BEEN SLOW TO JOIN THE BANDWAGON QUOTE I THINK WHAT WE SAW THURSDAY IS INSTITUTIONAL INVESTORS COMING IN TO BUY BECAUSE THEY WERE GETTING NERVOUS ABOUT FALLING BEHIND QUOTE THE RALLY SAID YASUO UEKI HEAD OF STOCK TRADING AT NIKKO SECURITIES COMPANY THURSDAY'S ACTIVITY INTENSIFIED AS THE NIKKEI APPROACHED NINETEEN THOUSAND WHICH TRADERS TERMED A LEVEL MANY INVESTORS HAVE BEEN AWAITING BEFORE BUYING CHRISTIAN HOWES SENIOR SALESMAN AT SMITH NEW COURT IN TOKYO SAID THIS SHOWS THAT THERE IS A LOT OF MONEY WAITING OUT THERE ALREADY THIS YEAR THE NIKKEI HAS RISEN MORE SHARPLY THAN IT DID DURING ALL OF LAST YEAR WHEN JAPAN'S EQUITY MARKET WAS DOGGED BY FALLING INDUSTRIAL OUTPUT WEAK CONSUMPTION AND GENERALLY DEFLATING ASSET VALUES REPEATED GOVERNMENT ATTEMPTS TO KICK START THE ECONOMY THROUGH SPENDING PACKAGES AND INTEREST RATE CUTS FAILED TO LIFT THE ECONOMY OUT OF ITS SLUMP BUT ANALYSTS SAID LAST YEAR'S OUTLOOK WAS TOO PESSIMISTIC MANY EXPECT MR. HOSOKAWA TO ANNOUNCE SPECIFIC ECONOMYBOOSTING MEASURES BEFORE HE LEAVES FOR THE U. S. FOR A FEBRUARY ELEVENTH SUMMIT WITH PRESIDENT CLINTON SOME ANALYSTS SAID EVEN LIMITED MEASURES MAY GIVE STOCK PRICES A BOOST GIVEN LAST YEAR'S PERVASIVE GLUMNESS LONDON EQUITIES SOARED TO RECORD HIGHS AS BRITISH ECONOMIC NEWS RAISED HOPES FURTHER THAT LOWER LENDING RATES ARE COMING SOON THE STOCKHOLM MADRID AND BRUSSELS BOURSES ALSO LOGGED RECORD HIGHS FRANKFURT STOCKS REBOUNDED ALMOST ONE PERCENT FOR THE MARKET'S FIRST GAIN THIS WEEK HONG KONG SHARES RALLIED THREE POINT ONE PERCENT WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED FOURTEEN POINT TWO ONE UP ZERO POINT SEVEN SEVEN REFLECTING HIGHER MARKETS IN ALL REGIONS PIPELINES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED FORTY THREE POINT ONE FIVE UP THREE POINT SIX FIVE OR TWO POINT SIX PERCENT WITH TRANSCANADA PIPELINES OF CANADA POSTING A FOUR POINT FOUR PERCENT GAIN IN ITS LOCAL CURRENCY SEMICONDUCTOR STOCKS TRAILED AT ONE HUNDRED NINETY SEVEN POINT FIVE FIVE DOWN SIX POINT OH SEVEN OR THREE PERCENT WITH INTEL OF THE U. S. SLIDING SEVEN PERCENT IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX SOARED THIRTY EIGHT POINT ONE POINTS OR ONE POINT ONE PERCENT TO A RECORD THREE THOUSAND FOUR HUNDRED SEVENTY FIVE POINT ONE THE F. T. THIRTY STOCK INDEX CLIMBED THIRTY POINT EIGHT POINTS OR ONE POINT TWO PERCENT TO TWO THOUSAND SIX HUNDRED FIFTY FOUR POINT ONE AND THE F. T. S. E. TWO HUNDRED FIFTY INDEX OF SMALLER STOCKS JUMPED ONE HUNDRED THIRTY FIVE POINT FIVE POINTS OR THREE POINT FOUR PERCENT TO FOUR THOUSAND ONE HUNDRED FORTY EIGHT POINT EIGHT A SECOND CONSECUTIVE RECORD VOLUME WAS ONE POINT THREE TWO BILLION SHARES UP FROM NINE HUNDRED SIXTY FOUR POINT NINE MILLION SHARES A DAY EARLIER THE HEAVY TURNOVER STEMMED FROM INTERNATIONAL AND BRITISH BUYERS FLOCKING TO THE SMALLER CAPITALIZATION STOCKS GILTS OR BRITISH GOVERNMENT BONDS RALLIED SHARPLY AND THE INTEREST RATE FUTURES CONTRACT CONTINUED TO FACTOR IN LOWER LENDING RATES WHILE THE POUND SLIPPED IN FOREIGNEXCHANGE DEALINGS STOCK PRICES TOOK OFF WHEN GOVERNMENT FIGURES SHOWED INFLATION SLIGHTLY BELOW EXPECTATIONS AND DECEMBER RETAIL SALES MUCH LOWER THAN ANTICIPATED A SCENARIO THAT SUPPORTS A REDUCTION IN BRITAIN'S BASE LENDING RATE THOUGH A RATE CUT MIGHT NOT COME IMMEDIATELY ANALYSTS SAID STOCKS' RALLY WAS JUSTIFIED BECAUSE THE ECONOMY IS GROWING WELL AND WILL INCREASE CORPORATE EARNINGS IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX ROSE TWENTY POINT FIVE FOUR POINTS TO TWO THOUSAND ONE HUNDRED THIRTY FOUR POINT THREE EIGHT THE REBOUND WHICH IGNITED ONLY CAUTIOUS ENTHUSIASM STEMMED FROM AN EASING OF SELLING PRESSURE BY FOREIGN INVESTORS PARTICULARLY U. S. TRADERS FOR NOW RATHER THAN A NEW DIRECTION FOR THE MARKET IN PARIS STOCKS ROSE HELPED PARTLY BY FRENCH INDUSTRIAL PRODUCTION STATISTICS THAT SUPPORTED THE NOTION AN ECONOMIC RECOVERY HAS BEGUN IN STOCKHOLM AFTER THE PREVIOUS DAY'S SETBACK STOCKS RESUMED THEIR RALLY BRINGING MARKET INDEXES TO NEW ALL TIME HIGHS ON RECORD VOLUME DESPITE PROFIT TAKING IN THE FORESTRY SECTOR IN MADRID SHARES SCORED A SECOND RECORD HIGH IN A ROW AS EXPECTATIONS FOR A SPANISH INTEREST RATE REDUCTION WERE BOOSTED BY A STRONGER BOND MARKET AND CURRENCY IN BRUSSELS STOCKS SURGED ONE POINT THREE PERCENT TO A RECORD FINISH WITH BROAD GAINS IN HONG KONG STOCKS' SHARP RISE WERE FUELED BY BULLISHNESS ABOUT STRONG EARNINGS IN THE TELECOMMUNICATIONS SECTOR WHICH ENCOURAGED OVERSEAS BUYING AND IN THE BANKING INDUSTRY INSTITUTIONS BOUGHT BLUE CHIPS ACROSS THE BOARD THE MARKET'S STRENGTH PROVIDED THE IMPETUS FOR THE MANILA BOURSE TO SOAR FIVE POINT TWO PERCENT WITH STRONG GAINS BY BANKS UTILITIES PROPERTY AND ENERGY COMPANIES IN SYDNEY SHARES STAGED A LATE RALLY TO CLOSE AT A NEW SIX YEAR HIGH SPURRED BY STRONG CORPORATE RETAIL SALES FIGURES IN SINGAPORE THOUGH THE MAIN INDEX ROSE ONE PERCENT THE BROAD MARKET WAS WEAK AND PRICES WERE MIXED AS MANY INVESTORS SAT OUT AWAITING A FURTHER CORRECTION BUT IN KUALA LUMPUR STOCKS PLUMMETED TWO POINT SIX PERCENT AMID JITTERINESS IN THE WAKE OF RECENT VOLATILITY IN SEOUL THE BENCHMARK INDEX SHOT UP ONE POINT SIX PERCENT ITS SECOND STRAIGHT RISE ON ACTIVE BUYING BY INDIVIDUALS THOUGH DECLINING ISSUES OUTNUMBERED ADVANCING ISSUES IN WELLINGTON STOCKS ROSE SOLIDLY TO A NEW FOUR YEAR HIGH IN MODERATE TRADING AMID BULLISHNESS ABOUT THE MARKET'S SHORT TERM PROSPECTS BUT IN BANGKOK PRICES SLUMPED ONE POINT ONE PERCENT IN A CONTINUING CONSOLIDATION IN MEXICO CITY STOCKS ADVANCED ONE POINT EIGHT PERCENT TO A RECORD AS THE PREVIOUS DAY'S RALLY CONTINUED WHEN BELLWETHER INTEREST RATES FELL TO HISTORIC LOWS AND THE PEASANT INSURGENCY WAS BELIEVED TO BE WINDING DOWN 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END HOST MARRIOTT CORPORATION BETHESDA MARYLAND SAID IT SIGNED A NONBINDING LETTER OF INTENT TO SELL TWENTY SIX FAIRFIELD INNS TO A VENTURE COMPRISING SAGE HOSPITALITY RESOURCES INCORPORATED AND CARLYLE GROUP L. P. FOR PROCEEDS OF ABOUT ONE HUNDRED FIFTEEN MILLION DOLLARS OF WHICH TWENTY SEVEN MILLION DOLLARS WILL BE IN THE FORM OF A NOTE HOST MARRIOTT SAID THE SALE IS EXPECTED TO CLOSE IN JUNE AND IS SUBJECT TO CERTAIN CONDITIONS AND APPROVALS MARRIOTT INTERNATIONAL INCORPORATED WILL CONTINUE TO OPERATE MORE THAN FIFTY FAIRFIELD INNS AND WILL REMAIN THE FAIRFIELD INN FRANCHISER LAST OCTOBER MARRIOTT CORPORATION SPLIT ITSELF INTO MARRIOTT INTERNATIONAL A MANAGEMENT COMPANY AND HOST MARRIOTT A REAL ESTATE AND TRAVEL CONCESSIONS CONCERN CLOSELY HELD SAGE HOSPITALITY IS BASED IN DENVER TWO REGIONAL BANKS CORESTATES FINANCIAL CORPORATION OF PHILADELPHIA AND SIGNET BANKING CORPORATION OF RICHMOND VIRGINIA REPORTED ROBUST GROWTH IN FOURTH QUARTER PROFITS REFLECTING IMPROVED CREDIT QUALITY AND INCREASED LENDING CORESTATES REPORTED A TWENTY THREE PERCENT JUMP IN FOURTH QUARTER NET INCOME TO EIGHTY FIVE POINT THREE MILLION DOLLARS OR SEVENTY THREE CENTS A SHARE FROM SIXTY NINE POINT ONE MILLION DOLLARS OR FIFTY NINE CENTS A SHARE IN THE YEAR EARLIER QUARTER FOR THE FULL YEAR CORESTATES SAID NET INCOME ROSE SEVENTY FOUR PERCENT TO THREE HUNDRED FOURTEEN POINT NINE MILLION DOLLARS OR TWO DOLLARS AND SIXTY NINE CENTS A SHARE AFTER A ONE TIME ACCOUNTING CHARGE OF THIRTEEN MILLION DOLLARS FOR POSTEMPLOYMENT BENEFITS IN NINETEEN NINETY TWO CORESTATES REPORTED NET INCOME OF ONE HUNDRED EIGHTY ONE POINT FOUR MILLION DOLLARS OR ONE DOLLAR AND FIFTY SEVEN CENTS A SHARE AFTER AN EIGHTY ONE MILLION DOLLAR ACCOUNTING CHARGE FOR HEALTH BENEFITS FOR RETIREES CORESTATES CHAIRMAN TERRENCE A. LARSEN ATTRIBUTED THE YEAR'S RECORD EARNINGS TO BROAD STRENGTH IN ALL OF THE BANK'S BASIC BUSINESSES SIGNET BANKING SAID FOURTH QUARTER NET INCOME JUMPED FIFTY SEVEN PERCENT TO FORTY NINE POINT NINE MILLION DOLLARS OR EIGHTY SEVEN CENTS A SHARE FROM THIRTY ONE POINT EIGHT MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE PROFIT FOR THE YEAR ROSE SIXTY PERCENT TO ONE HUNDRED SEVENTY FOUR POINT FOUR MILLION DOLLARS OR THREE DOLLARS AND SIX CENTS A SHARE FROM ONE HUNDRED NINE POINT TWO MILLION DOLLARS OR ONE DOLLAR AND NINETY SIX CENTS A SHARE THE PER SHARE DATA REFLECTS A TWO FOR ONE STOCK SPLIT SIGNET SAID NONPERFORMING ASSETS FELL THIRTY SIX PERCENT FROM A YEAR AGO AS THE BANK REDUCED ITS EXPOSURE IN COMMERCIAL REAL ESTATE NET INTEREST INCOME ROSE TEN PERCENT FOR THE QUARTER AND TWENTY TWO PERCENT FOR THE YEAR THE COMPANY SAID ASSETS WERE ELEVEN POINT EIGHT BILLION DOLLARS AS OF DECEMBER THIRTY FIRST THE BANK'S LOAN LOSS PROVISION DECLINED TWENTY EIGHT PERCENT FOR THE QUARTER AND THIRTY PERCENT FOR THE YEAR FROM THE CORRESPONDING PERIODS OF NINETEEN NINETY TWO IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CORESTATES CLOSED AT TWENTY SIX DOLLARS AND SEVENTY FIVE CENTS DOWN THIRTY SEVEN POINT FIVE CENTS SIGNET SLIPPED THIRTY SEVEN POINT FIVE CENTS TO THIRTY SIX DOLLARS AND SEVENTY FIVE CENTS STANDARD AND POOR'S CORPORATION SAID IT LOWERED ITS RATINGS ON ABOUT ONE POINT ONE BILLION DOLLARS OF THE DEBT OF BROWNING FERRIS INDUSTRIES INCORPORATED AND REMOVED THE RATINGS FROM CREDITWATCH WHERE THEY WERE PLACED IN OCTOBER THE RATINGS CONCERN CITED THE HOUSTON BASED WASTE DISPOSAL CONCERN'S AGGRESSIVE INVESTMENT STRATEGY WHICH IT SAID IS QUOTE RESULTING IN INCREASED DEBT USAGE QUOTE THIS COUPLED WITH LOWER PROFITABILITY DUE TO INDUSTRY CONDITIONS MAKE IT UNLIKELY THAT CASH FLOW PROTECTION MEASURES WILL RETURN TO HISTORICALLY STRONG LEVELS S. AND P. ADDED S. AND P. SAID THE COMPANY'S RISING CAPITAL EXPENDITURES PENDING ACQUISITION OF A FIFTY PERCENT STAKE IN OTTO ENTSORGUNGSDIENSTLEISDTUNG GMBH A LEADING SOLID WASTE FIRM IN GERMANY AND OPPORTUNITIES OVERSEAS WILL REQUIRE SUBSTANTIAL EXTERNAL FINANCING OVER THE NEXT SEVERAL YEARS ALL OF THESE FACTORS PUT PRESSURE ON THE CAPITAL STRUCTURE WHICH AT FIFTY THREE PERCENT DEBT TO TOTAL CAPITAL IS MODESTLY AGGRESSIVE S. AND P. SAID BROWNING FERRIS' SENIOR DEBT WAS LOWERED TO SINGLE A FROM SINGLE A PLUS AND SUBORDINATED DEBT TO SINGLE A MINUS FROM SINGLE A THE INDUSTRIAL REVENUE BONDS OF AMERICAN REF FUEL COMPANY A JOINT VENTURE WITH AIR PRODUCTS AND CHEMICALS INCORPORATED WERE LOWERED TO SINGLE A FROM SINGLE A PLUS S. AND P. SAID THE RATINGS REFLECT THE COMPANY'S LEADING POSITION AS THE SECOND LARGEST U. S. WASTE SERVICES FIRM STRONG CASH FLOW FROM CORE SOLID WASTE SERVICES AND EXPECTATIONS THAT MANAGEMENT WILL TAKE APPROPRIATE ACTIONS TO LIMIT DEBT USUAGE A SPOKESMAN FOR BROWING FERRIS SAID THE COMPANY IS NATURALLY DISAPPOINTED BY S. AND P'S ACTION BUT THE MOVE WASN'T UNEXPECTED HE ADDED THAT THE RATINGS ARE IN LINE WITH OTHER RATINGS SERVICES AJINOMOTO COMPANY A JAPANESE FOODS SEASONINGS AND PHARMACEUTICALS CONCERN REACHED A WORLD WIDE LICENSING AGREEMENT WITH A UNIT OF SANDOZ A. G. OF SWITZERLAND FOR WHAT AJINOMOTO SAYS IS ONE OF ITS QUOTE MOST PROMISING QUOTE DIABETES DRUGS AJINOMOTO WILL SUPPLY THE MEDICINE IN BULK TO ALLOW SANDOZ PHARMA TO MARKET THE DRUG GLOBALLY EXCEPT IN JAPAN THE U. K. CHINA SOUTH KOREA AND TAIWAN WHERE AJINOMOTO PLANS TO SELL THE PRODUCT AN AJINOMOTO SPOKESMAN WOULDN'T DISCLOSE THE VALUE OF ROYALTIES AJINOMOTO SAID THE DRUG CALLED A FOUR THOUSAND ONE HUNDRED SIXTY SIX IS EFFECTIVE IN QUICKLY PREVENTING DIABETICS FROM HAVING A HIGH BLOOD SUGAR LEVEL AFTER A MEAL BY INCREASING INSULIN PRODUCTION THE COMPANY SAYS THE DRUG HAS FEWER SIDE EFFECTS AND IS SUPERIOR TO SULPHONYLUREAS CURRENTLY USED TO TREAT DIABETES PRESIDENT CLINTON VISITED THE QUAKE HIT LOS ANGELES REGION CALIFORNIA DISASTER AUTHORITIES SAID DAMAGES FROM MONDAY'S EARTHQUAKE QUOTE CONSERVATIVELY QUOTE COULD RANGE FROM FIFTEEN BILLION DOLLARS TO THIRTY BILLION DOLLARS THE DEATH TOLL MEANWHILE ROSE TO FORTY SIX THE PRESIDENT CONDUCTED A TOWN MEETING IN BURBANK SOUTHEAST OF THE TEMBLOR'S EPICENTER IN THE SAN FERNANDO VALLEY HE ANNOUNCED ONE HUNDRED FORTY MILLION DOLLARS IN FEDERAL FUNDS AS THE FIRST INSTALLMENT OF RELIEF MONEY THOUSANDS OF COMMUTERS UNABLE TO USE QUAKE CRIPPLED FREEWAYS SPENT HOURS NEGOTIATING CANYON ROADS AND CITY STREETS TO GET TO AND FROM WORK CLINTON'S APPROVAL RATING IS RISING ACCORDING TO A WALL STREET JOURNAL SLASH N. B. C. NEWS POLL SIXTY PERCENT OF THOSE SURVEYED APPROVE OF THE JOB HE IS DOING UP FROM FIFTY SIX PERCENT LAST MONTH DESPITE NEGATIVE NEWS AMERICANS SEEM TO BE BASING THEIR IMPRESSION OF HIM ON ECONOMIC TRENDS AND A PERCEPTION OF FOREIGN POLICY COMPETENCE ATTORNEY GENERAL RENO IS EXPECTED TO APPOINT A FORMER U. S. ATTORNEY IN NEW YORK AS THE INDEPENDENT COUNSEL TO INVESTIGATE MATTERS SURROUNDING PRESIDENT CLINTON'S INVESTMENTS IN WHITEWATER DEVELOPMENT THE APPOINTMENT OF ROBERT FISKE JUNIOR COULD COME AS EARLY AS TODAY ACCORDING TO A LAW ENFORCEMENT OFFICIAL SUBZERO TEMPERATURES FORCED MANY GOVERNMENT OFFICES BUSINESSES AND SCHOOLS TO CLOSE IN THE MIDWEST AND NORTHEAST THE COLD CRIPPLED TRANSIT SYSTEMS AND CAUSED ELECTRICAL BLACKOUTS AND BROWNOUTS PARTS OF THE SOUTH WERE AFFECTED YELTSIN AND HIS PRIME MINISTER AGREED TO FORM A NEW RUSSIAN CABINET DOMINATED BY CONSERVATIVES WHO FAVOR A GO SLOW APPROACH TO REFORM THE LONG ANTICIPATED SHAKEUP CAME AMID THE RUBLE'S RECORD SLIDE AND CONFLICTING REPORTS THAT PRO REFORM FINANCE MINISTER FYODOROV IS ABOUT TO DEFECT FROM THE CABINET TWO U. S. SENATORS ARE CRITICIZING THE CLINTON ADMINISTRATION'S MANAGEMENT OF THE MULTIBILLION DOLLAR RUSSIAN AID PROGRAM SIGNALING THEIR DISCONTENT WITH CLINTON'S RUSSIA POLICY LEAHY AND MCCONNELL URGED THE ADMINISTRATION TO MAKE NO NEW COMMITMENTS OF FUNDS UNTIL IT DEFENDS THE PROGRAM DURING HEARINGS ISRAEL'S RABIN DECLARED THAT DESPITE U. S. ASSURANCES TO THE CONTRARY HE WASN'T CONVINCED SYRIA HAS ACCEPTED THE IDEA OF FULL PEACE THAT THE ISRAELIS DEMAND IN EXCHANGE FOR TERRITORY MEANWHILE IN TABA EGYPT THE CHIEF ISRAELI NEGOTIATOR SAID DISAGREEMENTS OVER BORDER CROSSINGS CONTINUED TO BOG DOWN ISRAELI P. L. O. PEACE TALKS SERBS AND CROATS SIGNED ACCORDS TO START NORMALIZING RELATIONS LEAVING BOSNIA'S MUSLIMS APPARENTLY OUTFLANKED BY THEIR FOES THE PACTS WERE WORKED OUT ON THE SIDELINES OF ANOTHER ROUND OF INCONCLUSIVE PEACE TALKS IN GENEVA IN BOSNIA GUNFIRE HIT A U. S. CARGO PLANE DELIVERING AID TO SARAJEVO AND THE U. N. SUSPENDED RELIEF FLIGHTS A SINGLE GENE CONTROLS THE TENDENCY TOWARD LOW BONE DENSITY KNOWN AS OSTEOPOROSIS IN OLDER PEOPLE AUSTRALIAN RESEARCHERS SAID THE SCIENTISTS REPORTED THAT IN A STUDY OF THREE HUNDRED ELEVEN WOMEN OLDER THAN SIXTY SIXTY ONE PERCENT WITH THE IDENTIFIED GENE HAD A LOW BONE DENSITY LEVEL THAT PUT THEM AT RISK OF HAVING A FRACTURE TREASURY SECRETARY BENTSEN MET WITH CHINA'S PREMIER LI IN BEIJING AND TOLD HIM PROGRESS ON HUMAN RIGHTS IS BASIC TO SINO AMERICAN TIES BENTSEN SAID THE U. S. WANTS TO REVIVE A JOINT ECONOMIC PANEL SUSPENDED AFTER THE NINETEEN EIGHTY NINE TIANANMEN SQUARE MASSACRE THE SUPREME COURT UPHELD THE CONGRESSIONALLY ESTABLISHED METHOD FOR SELECTING MILITARY JUDGES THE JUSTICES REJECTED THE CLAIM THAT BECAUSE MILITARY JUDGES AREN'T CHOSEN FOR LIFE OR FIXED TERMS THEY LACK THE INDEPENDENCE NEEDED FOR IMPARTIALITY TONYA HARDING'S EX HUSBAND TURNED HIMSELF IN AT THE F. B. I. OFFICE IN PORTLAND OREGON AFTER A JUDGE ORDERED HIS ARREST IN THE ALLEGED PLOT TO INJURE HARDING'S SKATING RIVAL NANCY KERRIGAN OFFICIALS RELEASED AN AFFIDAVIT WITH STATEMENTS FROM HARDING'S BODYGUARD LINKING HER TO THE ATTACK SHE HASN'T BEEN CHARGED AND HAS DENIED INVOLVEMENT MANDELA ACCUSED PRESIDENT DE KLERK OF ORCHESTRATING SOUTH AFRICA'S TOWNSHIP VIOLENCE TO SABOTAGE THE CHANCES OF THE AFRICAN NATIONAL CONGRESS BECOMING THE NATION'S FIRST BLACK GOVERNMENT NOW THAT I'M GONE I BIODEGRADE IS LEAVING ME COLD A DEEP BREATH MAY PREVENT A SHALLOW COMMENT SAL MIWA THIRTY SEVEN YEAR OLD PRESIDENT OF OPTRO MECHANICS CORPORATION OF PEARL RIVER N. Y. WAS NAMED TO THE BOARD OF THIS MAKER OF COMPOSITE BUILDING MATERIALS FROM RECYCLED PLASTIC AND WOOD FIBERS THE MOVE INCREASES THE BOARD TO SEVEN MEMBERS LAZARD FRERES AND COMPANY AND MERRILL LYNCH AND COMPANY DEFENDED THEIR MUNICIPAL BOND BUSINESS RELATIONSHIP AS A TOTALLY OPEN ONE THAT PROVIDED FOR DISCLOSURE TO LAZARD'S FINANCIAL ADVISORY CLIENTS BUT ELLEN O'CONNOR THE CHIEF FINANCIAL OFFICER OF THE DISTRICT OF COLUMBIA TOLD THE DISTRICT'S CITY COUNCIL THAT SHE DIDN'T KNOW THE DETAILS OF THE RELATIONSHIP QUOTE I WISH I HAD QUOTE SHE SAID THE DISTRICT LAST WEEK FIRED LAZARD AS ITS FINANCIAL ADVISER CITING A CONTINUING CLOUD OVER THE FIRM AS FEDERAL INVESTIGATORS LOOK INTO WHETHER LAZARD AND MERRILL VIOLATED ANY CONFLICT OF INTEREST DISCLOSURE OR OTHER RULES IN THEIR FINANCIAL DEALINGS WITH VARIOUS JURISDICTIONS THAT ISSUE MUNICIPAL BONDS LAZARD HAD A CONTRACT WITH MERRILL TO HELP DEVELOP THE MARKET FOR INTEREST RATE SWAPS WHICH ENABLE BOND ISSUERS TO CONVERT FIXED INTO FLOATING RATE DEBT OR VICE VERSA THE CONTRACT PROVIDED FOR A FLAT FEE AS WELL AS FEE SPLITTING ON CERTAIN SPECIFIC TRANSACTIONS ON WHICH THE TWO FIRMS WORKED JOINTLY A MERRILL SPOKESMAN SAID HIS FIRM PAID LAZARD TWO POINT EIGHT MILLION DOLLARS IN FLAT FEES UNDER THE CONTRACT BUT DIDN'T HAVE DETAILS ON MONEY FLOWS UNDER THE FEE SPLITTING ARRANGEMENT MERRILL LYNCH EARNED SOME THREE POINT SIX MILLION DOLLARS IN FEES FOR DOING TWO SWAP TRANSACTIONS FOR THE DISTRICT IN NINETEEN NINETY ONE AND NINETEEN NINETY TWO THE DISTRICT IS ONE OF MANY BOND ISSUING JURISDICTIONS THAT HAVE BEEN CONTACTED BY THE SECURITIES AND EXCHANGE COMMISSION AND THE U. S. ATTORNEY IN BOSTON IN CONNECTION WITH THEIR INVESTIGATIONS MERRILL LYNCH SAID ITS AGREEMENT WITH LAZARD WAS PREPARED BY THE LAW FIRM OF ROGERS AND WELLS IS ENTIRELY LEGAL WASN'T SECRET AND WAS DISCLOSED TO THE DISTRICT LAZARD FRERES SAID THAT THE CONTRACT HAD NO APPLICABILITY WHATSOEVER TO TRANSACTIONS WITH ANY OF ITS FINANCIAL ADVISORY CLIENTS AND THAT IT RECEIVED NO FEES FROM MERRILL IN CONNECTION WITH ANY WASHINGTON TRANSACTIONS MOREOVER LAZARD SAID THAT IT SPECIFICALLY INSTRUCTED MARK FERBER ITS FORMER PARTNER WHO HANDLED THE DISTRICT'S ACCOUNT TO MAKE PRESCRIBED DISCLOSURES TO THE DISTRICT AND THAT MR. FERBER ACKNOWLEDGED IN WRITING HE WOULD DO SO MR. FERBER COULDN'T BE REACHED FOR COMMENT MS. O'CONNOR THE DISTRICT'S DEPUTY MAYOR FOR FINANCE TOLD THE CITY COUNCIL THAT MR. FERBER TOLD HER LAZARD HAD AN AGREEMENT WITH MERRILL BUT SHE SAID SHE DIDN'T KNOW THE CONTENTS OF THAT AGREEMENT SHE SAID IT DIDN'T OCCUR TO HER THAT THE AGREEMENT INVOLVED FINANCIAL REMUNERATION HE DIDN'T TELL ME THEY HAD A FEE SHARING AGREEMENT SHE SAID IF SHE HAD KNOWN MS. O'CONNOR SAID MY INSTINCT IS I WOULD HAVE STEERED CLEAR OF IT PROCTER AND GAMBLE COMPANY GAVE UP ON ITS UNPROFITABLE CLARION COSMETICS BRAND AND ANNOUNCED PLANS TO ELIMINATE IT THE MOVE MARKS THE DEMISE OF A MASS MARKETED BRAND THAT HAS BEEN FLOUNDERING FOR MOST OF ITS SEVEN YEAR EXISTENCE BECAUSE OF ITS OWNERS' DIFFICULTIES FINDING A CONSUMER BASE QUOTE CLARION WAS ORIGINALLY AIMED AT AN OLDER CONSUMER WITH SENSITIVE SKIN BUT IT NEVER REACHED THAT MARKET AND HAS GONE THROUGH HALF A DOZEN POSITIONINGS SAID ROBERT HIATT CHIEF EXECUTIVE OFFICER OF RIVAL MAYBELLINE INCORPORATED CLARION HAS ANNUAL U. S. SALES OF ABOUT SEVENTY MILLION DOLLARS OR LESS THAN TEN PERCENT OF P. AND G'S DOMESTIC COSMETICS SALES CLARION IS THE LATEST P. AND G. BRAND TO BE PULLED FROM STORES AND THE MOVE IS PART OF A TREND IN THE FOOD AND CONSUMER GOODS INDUSTRIES TO SLASH COSTS BY CUTTING POORLY PERFORMING PRODUCTS P. AND G. GAINED CLARION AS PART OF ITS NINETEEN EIGHTY NINE ACQUISITION OF NOXELL CORPORATION WHICH ALSO INCLUDED THE COVER GIRL COSMETICS BRAND NOXELL INTRODUCED CLARION IN LATE NINETEEN EIGHTY SIX AS A PRODUCT FOR MATURE WOMEN WITH SENSITIVE SKIN IT HAD WIDE DISTRIBUTION BUT SALES WERE DISAPPOINTING AND SUBSEQUENT ATTEMPTS TO REPOSITION IT DIDN'T BOOST SALES SUFFICIENTLY ACCORDING TO ANALYSTS BY THE TIME P. AND G. BOUGHT CLARION IT WAS ALREADY A SOMEWHAT TROUBLED PRODUCT LINE SAID BONITA AUSTIN AN ANALYST WITH LEHMAN BROTHERS INCORPORATED CLARION STRUGGLED FOR A FEW YEARS AS P. AND G. FOCUSED ON COVER GIRL WHICH IS GEARED TOWARD YOUNGER WOMEN AND ON MAX FACTOR INTERNATIONAL WHICH IT ACQUIRED FROM REVLON IN NINETEEN NINETY ONE EARLIER THIS YEAR P. AND G. LAUNCHED A NEW ADVERTISING CAMPAIGN FOR CLARION POSITIONING IT AS A PRODUCT FOR OLDER WOMEN WITH CHANGING SKIN NEEDS IN THAT NICHE IT COMPETED WITH MAYBELLINE'S YEAR OLD REVITALIZING LINE WHICH ALSO TARGETS WOMEN IN THEIR THIRTIES AND UP WITH SPECIAL SKIN NEEDS IN SEPTEMBER MAYBELLINE TOLD RETAILERS IT WOULD ADD TO THE REVITALIZING LINEUP AND ASKED FOR ADDITIONAL SHELF SPACE WHICH MAY HAVE CUT INTO CLARION'S AVAILABILITY ACCORDING TO A P. AND G. SPOKESWOMAN THE NEW CLARION CAMPAIGN STABILIZED THE BRAND BUT IT STILL WOULD HAVE TAKEN US A SIGNIFICANT AMOUNT OF TIME TO GROW THE BRAND TO A LEVEL WE FOUND SATISFACTORY SHOULD DALLAS COWBOYS FANS THANK AMERICAN MEDICAL ELECTRONICS INCORPORATED THE RICHARDSON MAKER OF MEDICAL DEVICES HAS BEEN PROMOTING ITS ROLE IN COWBOY DEFENSIVE TACKLE LEON LETT'S RECOVERY FROM A BROKEN ANKLE THAT DIDN'T LOOK LIKE ANYTHING TO BRAG ABOUT WHEN MR. LETT'S BLUNDER ON A BLOCKED FIELD GOAL COST HIS TEAM THE MIAMI GAME BEFORE A NATIONAL T. V. AUDIENCE ON THANKSGIVING BUT ON SUNDAY HE WAS NAMED A PLAYER OF THE GAME IN DALLAS'S PLAYOFF WIN OVER GREEN BAY A. M. E.'S ROLE GOES BACK TO SEPTEMBER WHEN MR. LETT REINJURED AN ANKLE HE HAD BROKEN BEFORE THE TEAM'S MEDICAL STAFF HAD HIM TRY AN A. M. E. ANKLE BRACELET WHICH EMITS A WEAK ELECTROMAGNETIC FIELD TO STIMULATE BONE GROWTH AFTER WEARING IT FOURTEEN TO SIXTEEN HOURS A DAY FOR EIGHT WEEKS HE RETURNED TO ACTION QUOTE WE WEREN'T SURE HE'D BE UP AND RUNNING LET ALONE PLAYING BY THE EIGHTH WEEK QUOTE SAYS TEAM TRAINER KEVIN O'NEAL NOW IF A. M. E. CAN DEVELOP SOMETHING TO HELP STIMULATE RECALL OF N. F. L. RULES ON WHEN NOT TO TOUCH A LIVE FOOTBALL THE MYTH THE TEXAS GARMENT INDUSTRY IS JUST ABOUT DEAD WITHIN A FEW YEARS CHEAP IMPORTS FROM MEXICO WILL DELIVER THE KNOCKOUT PUNCH TO AN INDUSTRY THAT'S ALREADY REELING FROM LOW WAGE FOREIGN COMPETITION THE REALITY DON'T START THE EULOGY JUST YET NOT ONLY IS THE TEXAS APPAREL SECTOR ACTUALLY BUCKING THE NATIONAL TREND BY ADDING NEW JOBS THESE DAYS IT'S GROWING FASTER THAN ANY OTHER MANUFACTURING CATEGORY IN THE STATE WHAT'S MORE SOME ECONOMISTS ARGUE THAT THE NORTH AMERICAN FREE TRADE AGREEMENT MAY WIND UP HELPING THE TEXAS INDUSTRY AS MUCH AS IT HURTS LOWERING TARIFF BARRIERS COULD PROVE A WINDFALL FOR MANUFACTURERS SEEKING NEW MARKETS SOUTH OF THE BORDER AND A RECENT STUDY BY THE UNIVERSITY OF TEXAS' L. B. J. SCHOOL OF PUBLIC AFFAIRS CONTENDS THAT HIGHER WORKER PRODUCTIVITY IN TEXAS ALONG WITH SUPERIOR TRANSPORTATION AND COMMUNICATIONS WILL HELP KEEP THE INDUSTRY VITAL HERE QUOTE THERE ARE HIGH END NICHES IN THE APPAREL MARKET THAT ARE VERY FAVORABLE TO TEXAS PRODUCERS QUOTE SAYS CHANDLER STOLP AN ASSOCIATE PROFESSOR AT THE L. B. J. SCHOOL WHO WORKED ON THE STUDY OF COURSE NAFTA WILL HURT SOME PEOPLE SMALLER SEWING SHOPS ALONG THE BORDER THAT COMPETE LARGELY ON PRICE HAVE ALREADY LOST GROUND TO MAQUILADORA OPERATIONS IN NORTHERN MEXICO AND NAFTA MAY WELL ACCELERATE THE EXODUS OF LOWER SKILL JOBS AS TARIFFS ARE PHASED OUT OVER THE NEXT SIX YEARS BUT THERE ARE ALSO A HOST OF GARMENT MANUFACTURERS THAT PLAN TO STAY PUT AND EVEN EXPAND HERE IN EL PASO APPAREL JOBS HAVE JUMPED TWENTY EIGHT PERCENT SINCE NINETEEN NINETY TO FOUR THOUSAND SIX HUNDRED FUELED LARGELY BY THE EXPLOSIVE GROWTH OF BIG JEAN MANUFACTURERS FOR INSTANCE WRANGLER A UNIT OF V. F. CORPORATION READING PENNSYLVANIA HAS BOUGHT A NEW PLANT AND BUILT NEW WAREHOUSE AND FINISHING FACILITIES ROUGHLY TRIPLING EMPLOYMENT TO TWO THOUSAND ONE HUNDRED SINCE NINETEEN EIGHTY SEVEN ALTHOUGH LABOR COSTS ARE HIGHER IN TEXAS THAN MEXICO THE COMPANY SAYS IT HAS LITTLE CHOICE FOR OUR PARTICULAR PRODUCT LINE THE DEMAND IS ABSOLUTELY MADE IN THE U. S. A. SAYS JOE MAXEY DIVISION MANAGER HE ADDS THAT THE COMPANY'S RESEARCH INDICATES MEXICAN CONSUMERS FEEL THE SAME WAY WRANGLER IS CURRENTLY LOOKING INTO WAYS TO INCREASE ITS PENETRATION OF THAT MARKET LEVI STRAUSS AND COMPANY MEANWHILE IS WORKING TO MAKE ITSELF MORE COMPETITIVE BY CONVERTING TO A TEAM MANUFACTURING PROCESS BY CREATING FLEXIBLE GROUPS OF EMPLOYEES TRAINED IN A NUMBER OF DIFFERENT ASSEMBLY STEPS AND BY GIVING THEM MORE RESPONSIBILITY LEVI HOPES TO INCREASE QUALITY SHRINK LEAD TIMES AND IMPROVE INVENTORY MANAGEMENT AND THE IMPACT OF NAFTA NOT MUCH PREDICTS HECTOR VENEGAS A LABOR MARKET ANALYST FOR THE TEXAS EMPLOYMENT COMMISSION IN EL PASO NAFTA DIDN'T SUDDENLY GIVE SOMEBODY THE OPPORTUNITY TO MOVE SOUTH OF THE BORDER WE HAD THAT OPPORTUNITY BEFORE HE SAYS WE'RE VERY MUCH ALIVE THRIVING EVEN THE SAME CAN'T BE SAID OF THE DALLAS AREA WHERE APPAREL MANUFACTURING EMPLOYMENT HAS FALLEN SHARPLY OVER THE PAST DECADE STILL ACCORDING TO THE L. B. J. SCHOOL STUDY THE PRESENCE OF THE INTERNATIONAL APPAREL MART THE LARGEST CLOTHING WHOLESALE FACILITY IN THE COUNTRY GIVES DALLAS SOME COMPETITIVE ADVANTAGES THE MART AMONG OTHER THINGS KEEPS LOCAL MANUFACTURERS MUCH CLOSER TO CUTTING EDGE FASHION TRENDS AS A RESULT DALLAS AREA FACTORIES TEND TO FOCUS ON HIGHER QUALITY MARKET NICHES THAT PLACE A PREMIUM ON FLEXIBILITY AND TIMELINESS A SHORTCOMING OF FOREIGN MANUFACTURERS WHICH REQUIRE LONGER LEAD TIMES MEXICO'S INABILITY TO RESPOND QUICKLY AND TO MEET PRODUCTION SCHEDULES SEVERELY LIMITS ITS COMPETITIVENESS IN AN INDUSTRY WHERE FLEXIBILITY AND RESPONSIVENESS TO CHANGING DEMANDS ARE CRITICAL THE L. B. J. SCHOOL STUDY SAYS NOTING THAT MEXICO'S APPAREL INDUSTRY IS ATOMIZED WITH SOME SEVENTEEN THOUSAND FACTORIES EACH WITH AN AVERAGE OF EIGHT TO TEN WORKERS THAT'S ONE REASON DESIGNER LEONARD STEINBERG DECIDED AGAINST LOCATING IN MEXICO WHEN HE SPLIT OFF FROM VICTOR COSTA TO START HIS OWN LINE OF UPSCALE LADIES DRESSES AND SUITS QUOTE IN OUR BUSINESS WHEN YOU NEED A BUTTON YOU NEED IT NOW WHEN A STORE NEEDS A DRESS IT NEEDS IT YESTERDAY QUOTE HE SAYS THE METROPLEX WITH ITS EASY AIRLINE CONNECTIONS ALL OVER THE U. S. AS WELL AS ITS PROXIMITY TO BUYERS SUITED HIS NEEDS MUCH BETTER WHAT'S MORE MR. STEINBERG HAS DISCOVERED THAT TEXAS HAS ITS OWN COST ADVANTAGES OVER SOME OTHER GARMENT CENTERS HE SAYS HIS CLOTHING WHICH RETAILS FOR BETWEEN THREE HUNDRED FIFTY DOLLARS AND FIVE HUNDRED SEVENTY FIVE DOLLARS WOULD HAVE TO BE PRICED ABOUT FIFTY PERCENT HIGHER IF IT WAS MANUFACTURED IN NEW YORK JERELL INCORPORATED ANOTHER DALLAS CLOTHING COMPANY ALSO PLANS TO CONTINUE CONTRACTING WITH LOCAL SEWING HOUSES TO MANUFACTURE ITS MELISSA LINE OF WOMEN'S DRESS AND ALI MILES SPORTSWEAR OUR ADVANTAGE IS WE CAN RESPOND QUICKLY TO WHAT'S HAPPENING HE SAYS MEANWHILE JERELL IS LICKING ITS CHOPS ABOUT THE OPPORTUNITIES OFFERED BY NAFTA IT RECENTLY CONVERTED ITS LABELS TO ENGLISH FRENCH AND SPANISH TO FACILITATE SALES IN CANADA AND MEXICO BIG GOVERNMENT IN CASE YOU DIDN'T ALREADY KNOW IT THE COMPTROLLER'S OFFICE REPORTS THAT STATE GOVERNMENT ACCOUNTS FOR A BIG CHUNK OF THE TEXAS ECONOMY SEVEN POINT THREE PERCENT TO BE EXACT IN SOME MARKETS STATE SPENDING IS BY FAR THE BIGGEST GAME IN TOWN FOR INSTANCE THE STATE ACCOUNTS FOR THIRTY FIVE POINT SEVEN PERCENT OF ALL MEDICAL SERVICES EXPENDITURES AND NINE POINT SEVEN PERCENT OF ALL BUILDING CONSTRUCTION IN MORE THAN HALF OF ALL TEXAS COUNTIES THE PUBLIC SCHOOL SYSTEM IS THE BIGGEST SINGLE EMPLOYER CLEAR CHANNEL COMMUNICATIONS INVESTORS CERTAINLY TUNED INTO THE RIGHT STOCK LAST YEAR IN THE TWELVE MONTHS ENDED SEPTEMBER THIRTIETH NET INCOME FOR THE SAN ANTONIO OPERATOR OF RADIO AND TELEVISION STATIONS INCREASED MORE THAN SIXTY SIX PERCENT TO NEARLY SIX MILLION DOLLARS REVENUE WAS UP FORTY ONE PERCENT TO ONE HUNDRED NINETEEN POINT SEVEN MILLION DOLLARS AND THE STOCK ACCOUNTING FOR A FIVE FOR FOUR SPLIT LAST FEBRUARY MORE THAN DOUBLED AND WAS ONE OF THE TOP PERFORMERS ON THE AMERICAN STOCK EXCHANGE NOW HOWEVER MIGHT BE THE TIME TO CHANGE THE CHANNEL OR AT LEAST TAKE A COMMERCIAL BREAK WILLIAM D. LYONS EDITOR OF THE ATLANTA BASED SHORT ON VALUE NEWSLETTER RECENTLY ADDED CLEAR CHANNEL TO HIS LIST OF OVERPRICED STOCKS NOTING ITS LOFTY EARNINGS MULTIPLE HE CONSIDERS THE STOCK A POTENTIAL CANDIDATE FOR A SHORT SALE WITH A TARGET PRICE NEAR THIRTY DOLLARS THE STOCK CURRENTLY TRADES IN THE MID FORTY DOLLARS IN A SHORT SALE INVESTORS SELL SHARES OF BORROWED STOCK HOPING TO REPLACE THEM LATER AT A LOWER PRICE POCKETING THE DIFFERENCE C. S. FIRST BOSTON ANALYST HARRY J. DEMOTT SAYS QUOTE IT'S HARD TO JUMP ON THE CLEAR CHANNEL BANDWAGON AT CURRENT PRICES QUOTE ALTHOUGH HE NOTES THAT QUOTE THE RIDE CERTAINLY ISN'T OVER YET CLEAR CHANNEL WILL PROBABLY HAVE AN UPSIDE SURPRISE IN EARNINGS FOR THE FOURTH QUARTER CLEAR CHANNEL CURRENTLY TRADES AT MORE THAN EIGHTY FOUR TIMES THE FIFTY THREE CENTS A SHARE IT EARNED IN THE TWELVE MONTHS THROUGH SEPTEMBER THIRTIETH AND NEARLY FIFTY TIMES THE MOST ENTHUSIASTIC ESTIMATE FOR NINETEEN NINETY FOUR BUT EVEN THE MOST BULLISH ANALYST ONLY EXPECTS THE COMPANY'S EARNINGS TO GROW THIRTY SEVEN PERCENT A YEAR MEANING CLEAR CHANNEL IS TRADING AT MORE THAN DOUBLE ITS EXPECTED EARNINGS GROWTH RATE TYPICALLY INVESTMENT GURUS DON'T LIKE TO SEE A COMPANY'S EARNINGS MULTIPLE RADICALLY EXCEED ITS EXPECTED GROWTH RATE OPTIMISM AMONG SOME ANALYSTS HOWEVER IS BASED ON PER SHARE CASH FLOW A KEY MEASURE OF PERFORMANCE FOR BROADCAST COMPANIES CLEAR CHANNEL CURRENTLY TRADES BETWEEN EIGHTEEN AND TWENTY TIMES NINETEEN NINETY FOUR'S EXPECTED CASH FLOW PRETTY MUCH MATCHING MOST ANALYSTS' ESTIMATES OF ANNUAL CASH FLOW GROWTH BETWEEN FIFTEEN PERCENT AND TWENTY PERCENT BUT SOME ANALYSTS ARGUE THAT BECAUSE CLEAR CHANNEL'S CASH FLOW COULD GROW AS MUCH AS THIRTY PERCENT ANNUALLY THE COMPANY IS TRADING AT A DISCOUNT THOSE ESTIMATES ASSUME A CONTINUATION OF THE COMPANY'S AGGRESSIVE EXPANSION STRATEGY BUT THAT ASSUMPTION SEEMS FLAWED AND FOR A SIMPLE REASON THE FEDERAL COMMUNICATIONS COMMISSION YES EXPANSION WILL CONTINUE FOR SOME TIME AS CLEAR CHANNEL TAKES ADVANTAGE OF THE F. C. C.'S LIBERAL RULES REGARDING RADIO STATION OWNERSHIP BUT IT IS CERTAIN TO SLOW AT SOME POINT THE F. C. C. CURRENTLY ALLOWS OWNERSHIP OF EIGHTEEN A. M. AND EIGHTEEN F. M. STATIONS WITH NO MORE THAN TWO OF EACH IN ANY ONE MARKET THE MAXIMUM WILL INCREASE TO TWENTY OF EACH IN SEPTEMBER AT PRESENT CLEAR CHANNEL IS RAPIDLY APPROACHING THE F. C. C.'S CURRENT LIMIT THE COMPANY OWNS THIRTY TWO STATIONS WITH THE PURCHASE OF EIGHT MORE PENDING BECAUSE THOSE PENDING PURCHASES WOULD CAUSE CLEAR CHANNEL TO EXCEED THE F. C. C. LIMIT THE COMPANY IS CURRENTLY SEEKING F. C. C. APPROVAL TO DIVEST ITSELF OF ELEVEN STATIONS TRANSFERRING OWNERSHIP TO SNOWDEN BROADCASTING NEW ORLEANS HOWEVER BECAUSE CLEAR CHANNEL OWNS AN EIGHTY PERCENT NON VOTING EQUITY INTEREST IN SNOWDEN THE F. C. C. HAS YET TO RULE ON WHETHER THE TRANSFER TRULY TERMINATES CLEAR CHANNEL'S OWNERSHIP IF THE F. C. C. SIGNS OFF ON THE TRANSFER CLEAR CHANNEL WILL BE FREE TO SNAP UP MORE STATIONS IF THE F. C. C. RULES AGAINST THE COMPANY CLEAR CHANNEL WILL BE REQUIRED TO SHED FOUR STATIONS AND THEN WILL BE ABLE TO PICK UP FOUR MORE AFTER SEPTEMBER BUT WHATEVER THE F. C. C. RULES THE COMPANY IS BUMPING UP AGAINST LEGAL LIMITS AND ONCE IT CAN'T GROW BY ACQUISITION MUCH BEYOND ITS CURRENT RATE SHAREHOLDERS ARE GOING TO FOCUS ON ITS EARNINGS MULTIPLE AND THEY WON'T BE PLEASED TO BE SURE CLEAR CHANNEL MANAGEMENT HAS PROVED ITSELF DEFT AT PUMPING PROFITS OUT OF RADIO STATIONS PROFIT MARGINS AT SOME STATIONS ARE HIGHER THAN FORTY PERCENT MOREOVER THE COMPANY SURPRISED ANALYSTS WITH PER SHARE EARNINGS OF SEVENTEEN CENTS IN THE THIRD QUARTER TRIPLE THE YEAR AGO PER SHARE EARNINGS ANALYSTS EXPECT FROM THIRTEEN CENTS TO TWENTY SEVEN CENTS FOR THE NINETEEN NINETY THREE FOURTH QUARTER RADIO ADVERTISING HAS REBOUNDED STRONGLY PARTICULARLY IN CLEAR CHANNEL'S MOSTLY SOUTHERN MARKETS AND THE COMPANY'S T. V. PROPERTIES SHOULD CONTINUE TO PROSPER NOW THAT FOX WITH WHICH CLEAR CHANNEL LINKED SEVEN OF ITS EIGHT TELEVISION STATIONS HAS GAINED THE RIGHTS TO THE NATIONAL FOOTBALL LEAGUE'S N. F. C. CONFERENCE GAMES THE STOCK DIDN'T RUN UP IN NINETEEN NINETY THREE BECAUSE THE MARKET DECIDED TO BE KIND TO COMPANIES THAT BEGIN WITH THE LETTER C. SAYS PAINEWEBBER ANALYST ALAN J. GOTTESMAN INVESTORS BEGAN TO APPRECIATE THAT THIS COMPANY WASN'T JUST LUCKY WITH ITS ACQUISITIONS BUT THAT IT KNEW WHAT IT WAS DOING STILL CLEAR CHANNEL'S STOCK APPEARS TO HAVE MOVED AHEAD OF ITSELF FOR THE TIME BEING LAST JUNE WHEN THE STOCK TRADED IN THE MID TWENTY DOLLARS C. S. FIRST BOSTON ANTICIPATED A FAIRLY VALUED STOCK PRICE OF THIRTY ONE DOLLARS AND FIFTY CENTS WITHIN TWELVE MONTHS BASED ON PROJECTIONS FOR CLEAR CHANNEL'S NINETEEN NINETY FOUR CASH FLOW REVISED CASH FLOW ESTIMATES PUT CLEAR CHANNEL'S STOCK IN THE LOW FORTY DOLLARS A LEHMAN BROTHERS REPORT WRITTEN IN OCTOBER PROJECTED A FORTY THREE DOLLAR PRICE WITHIN THE YEAR MR. GOTTESMAN CONCEDES THE GAP BETWEEN PRICE AND VALUE CERTAINLY HAS NARROWED IN THE PAST YEAR D. R. HORTON LED TEXAS STOCKS FOR THE WEEK GAINING THREE POINT THREE SEVEN FIVE DOLLARS A SHARE OR MORE THAN TWENTY ONE PERCENT THE ARLINGTON BASED HOME BUILDER REPORTED EARLY LAST WEEK THAT NET SALES CONTRACTS FOR THE FISCAL FIRST QUARTER ENDED DECEMBER THIRTY FIRST TOTALED EIGHTY ONE POINT TWO MILLION DOLLARS AN EIGHTY THREE PERCENT INCREASE FROM A YEAR AGO HORTON WHICH HAS SEEN A SURGE IN DEMAND FOR NEW HOMES ALSO NOTED THAT ITS BACKLOG OF HOMES UNDER CONTRACT AT DECEMBER THIRTY FIRST INCREASED EIGHTY SEVEN PERCENT TO ONE HUNDRED TWENTY FOUR POINT FIVE MILLION DOLLARS FROM THE YEAR AGO PERIOD VTEL SHARES SHED NEARLY TWENTY TWO PERCENT TO CLOSE AT SIX DOLLARS AND TWENTY FIVE CENTS AFTER A PIPER JAFFRAY ANALYST DOWNGRADED THE STOCK TO ACCUMULATE FROM BUY ANALYST ROGER REDMOND TOOK THE ACTION ON VTEL THE AUSTIN MAKER OF INTERACTIVE VIDEO CONFERENCING SYSTEMS NOTING THAT LATER THIS MONTH COMPUTER CONCERN INTEL WILL UNVEIL A DESKTOP VIDEO CONFERENCING PRODUCT INCOMPATIBLE WITH CURRENT STANDARDS MR. REDMOND PROJECTS A TEMPORARY SLOWDOWN IN VIDEOCONFERENCING PRODUCT SALES AS COMPANIES WAIT TO SEE WHAT EMERGES AS THE STANDARD HE CUT VTEL'S NINETEEN NINETY FOUR EARNINGS ESTIMATE SEVENTY FIVE PERCENT TO FIVE CENTS A SHARE FROM TWENTY CENTS CYBERONICS DROPPED ONE DOLLAR AND SEVENTY FIVE CENTS OR FOURTEEN PERCENT AFTER THE FOOD AND DRUG ADMINISTRATION NOTIFIED THE WEBSTER MEDICAL DEVICE COMPANY THAT THERE ARE QUOTE SIGNIFICANT DEFICIENCIES QUOTE IN THE COMPANY'S PREMARKET APPROVAL APPLICATION FOR ITS NEUROCYBERNETIC PROSTHESIS SYSTEM AN IMPLANTABLE DEVICE USED TO TREAT EPILEPSY THE F. D. A. REQUESTED ADDITIONAL CLINICAL AND TECHNICAL INFORMATION THE OLD DOG OF THE U. S. BUS BUSINESS IS LEARNING SOME NEW TRICKS FROM ITS MEXICAN PEERS IN ANTICIPATION OF THE NORTH AMERICAN FREE TRADE AGREEMENT DALLAS BASED GREYHOUND LINES INCORPORATED SIGNED A RECIPROCAL TICKETING AGREEMENT IN NINETEEN NINETY TWO WITH ESTRELLA BLANCA A MEXICO CITY BUS COMPANY WHILE THE LINK HAS RAISED GREYHOUND RIDERSHIP IN LAREDO EL PASO AND MCALLEN THE GAINS HAVEN'T BEEN BIG ENOUGH TO MERIT ADDING DRIVERS OR SERVICE BUT GREYHOUND THINKS ITS TIE WITH THE MEXICAN INDUSTRY MAY PAY OFF IN ANOTHER WAY IT IS TAKING A CLOSE LOOK AT INTRODUCING IN THE U. S. THE QUOTE PREMIUM SERVICE QUOTE OFFERED BY SOME MEXICAN CARRIERS IN ESSENCE A GROUND BASED VARIANT ON FIRST CLASS AIR TRAVEL PREMIUM SERVICE INCLUDES SUCH AMENITIES AS WIDER SEATS AND AISLES ONBOARD MOVIES AND BEVERAGE SERVICE MOST GREYHOUND CUSTOMERS IN THE U. S. TEND TO BE LOW TO MIDDLE INCOME PEOPLE WHO PROBABLY WOULDN'T PAY EXTRA FOR THE WHITE GLOVE TREATMENT BUT GREYHOUND EXECUTIVES SAY PREMIUM SERVICE MIGHT GIVE THE BUS LINE AN EDGE AMONG WHITE COLLAR COMMUTERS IN SOME MARKETS SUCH AS THE BOSTON WASHINGTON CORRIDOR IT'S A DIRECTION WE'RE HEADING IN A GREYHOUND SPOKESMAN SAYS FROM A DISTANCE IT LOOKS LIKE JUMBO JETS AT THE LOCAL AIRPORT HERE ARE LINED UP THICKER THAN LAGUARDIA AT RUSH HOUR AND WHILE THE PLANES AT THAT BUSY NEW YORK AIRPORT SOMETIMES SEEM TO GO NOWHERE FAST THEY'VE GOT NOTHING ON THE D. C. TENS AND SEVEN TWENTY SEVENS HERE THAT'S BECAUSE AMARILLO INTERNATIONAL AIRPORT HAS BECOME ONE OF THE BUSIEST AIRPLANE PARKING LOTS IN THE COUNTRY AS CARRIERS GROUND AGING AND UNDERUSED JETS THEY HAVE PARKED MANY AT THE THREE YEAR OLD STORAGE FACILITY OPERATED BY DYNAIR TECH A UNIT OF THE AIRCRAFT MAINTENANCE COMPANY DYNCORP IN RESTON VIRGINIA DYNAIR IS CARING FOR FIFTY AIRCRAFT HERE FROM AMERICAN DELTA AND OTHER AIRLINES AND IT EXPECTS TWENTY MORE IN THE NEXT SIX MONTHS THAT MAKES AIRCRAFT STORAGE ONE OF THE FEW EXPANDING SEGMENTS OF AVIATION AND EXPLAINS WHY DYNAIR HAS INCREASED ITS WORK FORCE HERE TO ONE HUNDRED FIFTY FROM THREE IN JUST THREE YEARS OF OPERATION QUOTE IT'S AN ACTIVE AREA RIGHT NOW BUT I WOULDN'T CALL IT A GROWING BUSINESS QUOTE SAYS PAUL HANNAK DYNAIR'S SENIOR VICE PRESIDENT FOR BUSINESS DEVELOPMENT IT'S NOT SOMETHING ANY OF US LIKE TO SEE WE'D LIKE TO SEE THE AIRCRAFT OPERATING AMARILLO IS AN IDEAL SPOT FOR SIDELINED AIRLINERS MR. HANNAK SAYS ITS DRY MODERATE CLIMATE IS GENTLE ON PLANES MOREOVER THE AMARILLO AIRPORT USED TO BE AN AIR FORCE BASE SO IT HAS A RUNWAY LONG ENOUGH TO ACCOMMODATE JUMBO JETS AND PLENTY OF ROOM FOR EXPANDED STORAGE IT SEEMS LOGICAL ENOUGH THE AREA AROUND THE GALLERIA IS THE GALLERIA AREA SO SAYS THE GALLERIA ITSELF THE THREE HUNDRED STORE SHOPPING CENTER IN HOUSTON THAT HAS BEEN TAKING OUT ADVERTISEMENTS IN LOCAL NEWSPAPERS EXHORTING THE PUBLIC AND THE MEDIA NOT TO CALL THE ENVIRONS OF THE FAMED MALL THE QUOTE GALLERIA AREA QUOTE BUT QUOTE UPTOWN HOUSTON QUOTE INSTEAD WHY THE OBJECTION WE'RE PROTECTING THE FACT THAT IT'S OUR NAME SAYS LOIS WILLIAMS ASSISTANT MARKETING DIRECTOR FOR THE GALLERIA WHICH IS OWNED BY HINES INTERESTS LIMITED HOUSTON WE'RE A SPECIAL PLACE THE GALLERIA HAS LONG BEEN AGGRESSIVE ABOUT PROTECTING ITS NAME WHICH IS REGISTERED WITH THE STATE AS A SERVICE MARK AND THUS SHOULD ONLY BE USED TO DENOTE THE HOUSTON SHOPPING CENTER AND ITS SISTER DEVELOPMENT IN DALLAS ALSO OWNED BY HINES INTERESTS A LOT OF PEOPLE TRY TO RIDE ON OUR COATTAILS MS. WILLIAMS COMPLAINS IN DALLAS GALLERIA'S NAME HASN'T CREPT BEYOND THE MALL IN PART BECAUSE THE MALL IS ONLY ELEVEN YEARS OLD HOUSTON'S IS TWENTY FIVE AND IN PART BECAUSE ITS NORTH DALLAS LOCATION WAS WELL KNOWN BEFORE THE SHOPPING CENTER WAS BUILT WE HAVEN'T HAD INSTANCES OF REFERENCES FROM AREA BUSINESSES SAYS JANE ROBERTSON DIRECTOR OF MARKETING BUT IN HOUSTON THE GALLERIA NAME POPS UP ON CAR DEALERSHIPS ELECTROLYSIS OFFICES AND GAS STATIONS IN THE MALL'S VICINITY TO CITE JUST A FEW INSTANCES THERE'S EVEN A GALLERIA AREA CHAMBER OF COMMERCE WHICH MS. WILLIAMS NOTES WE DO NOT RECOGNIZE BUT GETTING PEOPLE TO SWITCH TO QUOTE UPTOWN HOUSTON QUOTE WILL BE TOUGH JOHN BREEDING PRESIDENT OF THE UPTOWN HOUSTON CIVIC GROUP WHICH THE GALLERIA DOES RECOGNIZE SAYS THAT PEOPLE ARE EVERY BIT AS FAMILIAR WITH UPTOWN HOUSTON AS THEY WERE WITH THE FORMER NAME FOR THE AREA PERHAPS BUT FOR THOSE WHO HAVE SOMEHOW FORGOTTEN THE OLD NAME IT WAS MAGIC CIRCLE THAT MONIKER FADED IN THE NINETEEN SEVENTIES BECAUSE SO FEW PEOPLE USED IT THE SWAYING OF DOWNTOWN OFFICE TOWERS AND OTHER STRUCTURES DURING MONDAY'S EARTHQUAKE CAME CLOSE TO THE DESIGN LIMITS IMPOSED ON NEW CONSTRUCTION IN NINETEEN EIGHTY EIGHT EXPERTS SAY THE EXTENT OF THE GROUND MOVEMENT MORE VIOLENT THAN SOME OF THE SHAKING THAT TOOK PLACE DURING THE DEADLY NINETEEN EIGHTY NINE SAN FRANCISCO QUAKE SURPRISED SOME OF THESE QUAKE EXPERTS THE STRICTER CONSTRUCTION STANDARDS IMPOSED BY THE STATE OF CALIFORNIA IN THE WAKE OF A QUAKE THAT RAVAGED MEXICO CITY IN NINETEEN EIGHTY FIVE WERE INTENDED TO PROTECT BUILDINGS AGAINST AN EARTHQUAKE EVEN MORE POWERFUL THAN THE ONE THAT STRUCK THE LOS ANGELES AREA MONDAY THE TOUGHER BUILDING STANDARDS ENACTED DURING THE PAST FIVE YEARS ALLOWED HIGH RISE BUILDINGS AND NEWER COMMERCIAL STRUCTURES TO ESCAPE LARGELY UNSCATHED IN THE LATEST LOS ANGELES QUAKE WHICH MEASURED SIX POINT SIX ON THE RICHTER SCALE BUT THE MASSIVE TEMBLOR DISCLOSED STRIKING SHORTCOMINGS IN CALIFORNIA'S EFFORT TO REINFORCE OLDER BUILDINGS AND FREEWAYS QUOTE THE GROUND MOTION THAT MANY BUILDINGS SAW WAS CLOSE TO THE MAXIMUM THEY WERE DESIGNED TO WITHSTAND QUOTE SAID RON HAMBURGER A VICE PRESIDENT OF EQE INTERNATIONAL CORPORATION SAN FRANCISCO A LEADING ENGINEERING CONSULTING FIRM SPECIALIZING IN EARTHQUAKE DAMAGE PREVENTION AND ASSESSMENT THE MOTION WAS CAPTURED BY DEVICES THAT CALIBRATE ACTUAL ACCELERATION RATES OF THE GROUND AS THE TREMORS PASS THROUGH FOR THOUSANDS OF OLDER BUILDINGS THAT SUSTAINED SIGNIFICANT DAMAGE AND SECTIONS OF THE REGION'S HIGHWAY SYSTEM WHICH BUCKLED OR COLLAPSED DESPITE TWO DECADES OF PLANNING TO SHORE THEM UP FOR SUCH SEISMIC ACTIVITY CURRENT RETROFIT EFFORTS CLEARLY PROVED INADEQUATE YESTERDAY AS THE FULL SCOPE OF THE ROADWAY DAMAGE BECAME APPARENT EARTHQUAKE EXPERTS AND EVEN SOME STATE TRANSPORTATION OFFICIALS PREDICTED THAT THE ENTIRE ONE BILLION DOLLARS STATEWIDE HIGHWAY RETROFIT PROGRAM IS LIKELY TO BE REVAMPED GOVERNOR PETE WILSON QUICKLY TRIED TO SCOTCH THE IDEA OF INCREASING TAXES TO SPEED UP THE WORK BUT QUESTIONS ABOUT WHY THE PROGRAM IS TAKING SO LONG AND WHAT CRITERIA STATE OFFICIALS RELIED ON TO DETERMINE THE OVERPASSES TO BE UPDATED FIRSTARE LIKELY TO BECOME MAJOR POLITICAL ISSUES IN COMING MONTHS THOMAS HANKS A SEISMOLOGIST WITH THE U. S. GEOLOGICAL SERVICE IN MENLO PARK CALIFORNIA SAID THE ROADWAY DAMAGE THIS TIME APPEARED TO EXCEED DAMAGE CAUSED BY THE NINETEEN SEVENTY ONE SYLMAR QUAKE WHILE NOTING THAT MONDAY'S QUAKE WAS CENTERED CLOSER TO HEAVILY POPULATED AREAS OF THE SAN FERNANDO VALLEY MR. HANKS NEVERTHELESS CHALLENGED THE EFFECTIVENESS OF THE STATE'S HIGHWAY IMPROVEMENT EFFORTS WE'VE HAD TWENTY THREE YEARS TO GATHER KNOWLEDGE POUR MORE CEMENT AND INSTALL MORE REINFORCING STEEL HE SAID YET MORE BRIDGES CAME DOWN BEGINNING IN NINETEEN SEVENTY ONE THE STATE SPENT HUNDREDS OF MILLIONS OF DOLLARS INSTALLING DEVICES INTENDED TO PREVENT ROADWAYS FROM BEING KNOCKED OFF THEIR SUPPORTING PILLARS DURING PERIODS OF SEISMIC STRESS THEN AFTER THE NINETEEN EIGHTY NINE QUAKE THAT HIT SAN FRANCISCO THE STATE INITIATED A SECOND ROUND OF CONSTRUCTION TO REINFORCE PILLARS AND FOUNDATIONS HOLDING UP HIGHWAYS SO FAR ONLY THREE HUNDRED OF THE NINE HUNDRED BRIDGES AND OVERPASSES TARGETED FOR SUCH REINFORCEMENT HAVE BEEN MODERNIZED WORK ON TWO OF THE MOST SERIOUSLY DAMAGED OVERPASSES WAS SCHEDULED TO START IN THE NEXT FEW WEEKS STATE HIGHWAY OFFICIALS SAID THAT THE WORST ROADWAY DAMAGE OCCURRED AT OVERPASSES WHERE THE COLUMNS AND FOUNDATIONS HADN'T YET BEEN REINFORCED WITH EXTRA STEEL OR CONCRETE AT A NEWS CONFERENCE IN SACRAMENTO JAMES ROBERTS CHIEF ENGINEER FOR THE CALIFORNIA DEPARTMENT OF TRANSPORTATION SAID THAT UNEXPECTED VERTICAL JOLTING OF THE HIGHWAYS COUPLED WITH TYPICAL HORIZONTAL SHAKING DURING EARTHQUAKES CAUSED SOME OF THE ROADBEDS TO COLLAPSE ATTRIBUTING RETROFIT DELAYS TO ENVIRONMENTAL AND TECHNICAL PROBLEMS HE ACKNOWLEDGED THAT NOW THE STATE WILL HAVE TO COME UP WITH A REVISED PRIORITY LIST OF VULNERABLE ROADWAYS BASED ON THE LOCATION OF THE LATEST QUAKE AND OTHER FACTORS BRIDGES ALONG THE SIMI VALLEY FREEWAY THAT COLLAPSED FOR INSTANCE WEREN'T NEAR THE TOP OF THE STATE'S LIST BECAUSE THEY WERE RELATIVELY NEW AND CONSIDERED SUFFICIENTLY SOLID TO WITHSTAND A SEVERE QUAKE STATE LAWMAKERS YEARS AGO ADOPTED A SPECIAL EXCISE TAX TO FUND THE HIGHWAY IMPROVEMENTS BUT ANOTHER SENIOR CONSULTANT AT EQE INTERNATIONAL WHICH HAS CONTRACTS FOR SOME OF THE DESIGN WORK BLAMED MUCH OF THE DELAY ON THE STATE'S BUREAUCRACY THE PRIMARY LIMITATION IS THAT THE STATE DEPARTMENT OF TRANSPORTATION CAN HANDLE ONLY A LIMITED NUMBER OF CONTRACTS AT A TIME EARL AURELIUS SAID IT BECOMES A MANAGEMENT PROBLEM THE APARTMENT BUILDINGS RETAIL STORES AND EVEN HEALTH FACILITIES THAT TOOK SEVERE DAMAGE APPARENTLY WERE BUILT UNDER OLDER VERSIONS OF THE BUILDING CODES ACCORDING TO EARTHQUAKE EXPERTS AND RESCUE OFFICIALS ONLY A TINY PORTION OF SUCH OLDER BUILDINGS IN THE REGION THESE PEOPLE ESTIMATED HAVE UNDERGONE OFTEN EXPENSIVE RENOVATIONS NECESSARY TO SHORE UP MASONRY OR CONCRETE WALLS TO MEET TODAY'S STANDARDS THE NORTHRIDGE APARTMENT BUILDING THAT COLLAPSED AND KILLED SIXTEEN RESIDENTS FOR EXAMPLE REPORTEDLY HAD A SO CALLED SOFT OR UNREINFORCED FIRST FLOOR THAT WOULD HAVE TO BE STRENGTHENED BY STEEL SUPPORTS IF IT WERE BEING BUILT TODAY BILL IWAN AN EARTHQUAKE EXPERT AT THE CALIFORNIA INSTITUTE OF TECHNOLOGY SAID THIS WEEK'S EARTHQUAKE RAISES QUESTIONS ABOUT WHETHER ENOUGH HAS BEEN DONE TO IMPROVE CONSTRUCTION STANDARDS TO PREVENT FATALITIES DID WE LEARN ENOUGH FROM THE PREVIOUS QUAKES AND DID WE PUT IT INTO PRACTICE HE ASKED REPORTERS MONDAY ANOTHER RESULT OF THE QUAKE COULD BE TO PROMPT MANY OWNERS OF PLANTS SHOPPING CENTERS AND OTHER COMMERCIAL BUILDINGS TO INVEST IN RETROFITS THAT'S BECAUSE EARTHQUAKE INSURANCE RATES ARE EXPECTED TO CONTINUE THEIR UPWARD SPIRAL AND SOME BUSINESSES MAY FIND IT MORE ECONOMICAL TO MAKE LONG TERM INVESTMENTS IN UPGRADING FACILITIES FACING STIFF FOREIGN COMPETITION JAPAN AIRLINES SAID IT WILL CUT FIVE THOUSAND JOBS NEARLY ONE QUARTER OF ITS WORK FORCE AND SHARPLY TRIM CAPITAL INVESTMENT OVER THE NEXT FOUR YEARS J. A. L. SAID ITS CUTBACKS SHOULD SAVE ONE HUNDRED BILLION YEN NINE HUNDRED ONE POINT THREE MILLION DOLLARS IN THE NEXT FISCAL YEAR WHICH BEGINS APRIL FIRST J. A. L. FORMERLY JAPAN'S FLAG CARRIER SAID IT EXPECTS TO REPORT A PRETAX LOSS OF TWO HUNDRED SEVENTY POINT FOUR MILLION DOLLARS FOR THE YEAR ENDING MARCH THIRTY FIRST THE AIRLINE HAS BEEN STRUGGLING IN RECENT YEARS DUE TO THE WORLD WIDE ECONOMIC SLOWDOWN THE RISING YEN AND HIGH OPERATING COSTS IT HAD A LOSS OF FOUR HUNDRED EIGHTY FIVE MILLION DOLLARS IN THE PREVIOUS FISCAL YEAR J. A. L. AIMS TO BREAK EVEN IN THE COMING TWO FISCAL YEARS AND ATTAIN STABLE PROFITABILITY FROM THE YEAR THAT BEGINS APRIL FIRST NINETEEN NINETY SIX THE JOB CUTS REPRESENTING ABOUT TWENTY THREE PERCENT OF J. A. L.'S WORK FORCE OF TWENTY TWO THOUSAND PEOPLE WILL BE IMPLEMENTED THROUGH ATTRITION CURBS ON NEW HIRING AND TRANSFERS TO RELATED COMPANIES J. A. L. SAID THE AIRLINE ALSO SAID IT WILL TRIM CAPITAL INVESTMENT FOR NINETEEN NINETY FOUR TO NINETEEN NINETY SEVEN BY ABOUT FORTY EIGHT PERCENT TO THREE POINT NINE SIX BILLION DOLLARS FROM A PLANNED SEVEN POINT FIVE SEVEN BILLION DOLLARS SOME SEVEN FORTY SEVEN FOUR HUNDREDS AND OTHER AIRCRAFT WILL BE INTRODUCED LATER THAN INITIALLY PLANNED AND THE CARRIER SAID IT IS CONSIDERING INTRODUCING SMALLER PLANES HONEYWELL INCORPORATED'S FOURTH QUARTER EARNINGS TOPPED THOSE OF THE YEAR AGO PERIOD WHICH WAS CRIMPED BY A BIG CHARGE BUT SALES DROPPED FIVE PERCENT IN THE LATEST QUARTER AND THE BUILDING CONTROLS COMPANY WARNED THAT NINETEEN NINETY FOUR WOULD SEE A DECLINE OF ABOUT TEN PERCENT IN PER SHARE EARNINGS PRIMARILY BECAUSE OF WEAKNESS IN ITS SPACE AND AVIATION LINES NET WAS ONE HUNDRED TWELVE POINT SIX MILLION DOLLARS OR EIGHTY FIVE CENTS A SHARE VERSUS NET OF TWENTY NINE MILLION DOLLARS OR TWENTY ONE CENTS A SHARE A YEAR EARLIER THE YEAR AGO QUARTER INCLUDED EIGHTY FIVE POINT ONE MILLION DOLLARS IN RESTRUCTURING CHARGES PARTIALLY OFFSET BY A SEVEN POINT FOUR MILLION DOLLAR GAIN EXCLUDING UNUSUAL ITEMS OPERATING PROFIT WAS TWO HUNDRED FOUR POINT TWO MILLION DOLLARS OFF SLIGHTLY FROM TWO HUNDRED EIGHT POINT TWO MILLION DOLLARS A YEAR EARLIER SALES IN THE LATEST QUARTER DIPPED TO ONE POINT SIX TWO BILLION DOLLARS FROM ONE POINT SEVEN ONE BILLION DOLLARS HONEYWELL SAID IT HAD ACHIEVED ITS NINETEEN NINETY THREE EARNINGS OBJECTIVE QUOTE DESPITE A SLUGGISH U. S. RECOVERY RECESSIONARY CONDITIONS IN EUROPE AND THE CONTINUED CYCLICAL DOWNTURN IN THE COMMERCIAL AVIATION INDUSTRY QUOTE PRODUCTIVITY IMPROVEMENTS AND COST CUTTING PROGRAMS HELPED FIRM PROFIT MARGINS THE COMPANY SAID OPERATING PROFIT AT THE SPACE AND AVIATION CONTROL UNIT DECLINED THIRTY NINE PERCENT TO TWENTY FIVE POINT NINE MILLION DOLLARS AND ORDERS DROPPED BY ABOUT TWENTY PERCENT IN THE LATEST PERIOD THE COMPANY SAID THE COMPANY SAID IT EXPECTS A SOLID PERFORMANCE FROM ITS HOME AND BUILDING CONTROL AND INDUSTRIAL BUSINESSES IN NINETEEN NINETY FOUR BUT IT CAUTIONED THAT THE ANTICIPATED IMPROVEMENTS AT THOSE OPERATIONS WILL NOT BE ENOUGH TO OFFSET CONTINUED WEAKNESS IN ITS SPACE AND AVIATION LINES AND THE PROJECTED ADVERSE EFFECT OF FOREIGN CURRENCY FLUCTUATIONS THE COMPANY ALSO SAID THAT IT ANTICIPATES A STRONG REBOUND IN PER SHARE EARNINGS BEGINNING IN NINETEEN NINETY FIVE IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY HONEYWELL SHARES SLIPPED EIGHTY SEVEN POINT FIVE CENTS TO THIRTY TWO DOLLARS AND SEVENTY FIVE CENTS FOR THE YEAR HONEYWELL REPORTED NET OF THREE HUNDRED TWENTY TWO POINT TWO MILLION DOLLARS OR TWO POINT FOUR OH A SHARE IN NINETEEN NINETY TWO IT HAD NET OF TWO HUNDRED FORTY SIX POINT EIGHT MILLION DOLLARS OR ONE POINT SEVEN EIGHT A SHARE BUT THE RESULTS WERE HURT BY CHARGES OF ONE HUNDRED FORTY FOUR POINT FIVE MILLION DOLLARS FOR AN ACCOUNTING CHANGE AND EIGHTY FIVE POINT ONE MILLION DOLLARS FOR RESTRUCTURING THE CHARGES WERE PARTIALLY OFFSET BY A ONE HUNDRED SEVENTY ONE POINT FOUR MILLION DOLLAR GAIN FROM LITIGATION SETTLEMENTS SALES IN NINETEEN NINETY THREE SLIPPED FOUR POINT TWO PERCENT TO FIVE POINT NINE SIX BILLION DOLLARS FROM SIX POINT TWO TWO BILLION DOLLARS DEFENSE CONTRACTOR GRUMMAN CORPORATION ANNOUNCED ITS RESTRUCTURING PLAN TO REDUCE OPERATING COST BY NEARLY SIX HUNDRED MILLION DOLLARS OVER THE NEXT THREE YEARS AS EXPECTED THE COMPANY SAID IT WILL CLOSE FIVE MAJOR LONG ISLAND N. Y. FACILITIES TRIMMING TOTAL MANUFACTURING AND OFFICE SPACE BY ONE THIRD THE CURRENT WORK FORCE OF SEVENTEEN THOUSAND NINE HUNDRED PEOPLE ALREADY DOWN FROM A NINETEEN EIGHTY SEVEN PEAK OF ABOUT THIRTY THREE THOUSAND WILL BE REDUCED BY ABOUT FIVE HUNDRED THIS YEAR GRUMMAN SAID IT WILL TAKE A PRETAX CHARGE OF EIGHTY FIVE MILLION DOLLARS AGAINST NINETEEN NINETY THREE EARNINGS TO COVER THE RESTRUCTURING COST EXCLUDING THE CHARGE GRUMMAN SAID NINETEEN NINETY THREE EARNINGS WILL BE QUOTE AT LEAST IN LINE QUOTE WITH NINETEEN NINETY TWO'S THREE DOLLARS AND FORTY NINE CENTS A SHARE FROM CONTINUING OPERATIONS AMONG SPECIFIC LOCATIONS AFFECTED AIRCRAFT OPERATIONS IN THE ONE POINT FIVE MILLION SQUARE FOOT FACILITY AT CALVERTON N. Y. WILL BE MOVED TO GRUMMAN'S PLANT IN SAINT AUGUSTINE FLORIDA ENGINEERING AND TECHNICAL OPERATIONS IN CALVERTON WOODBURY MELVILLE AND HOLTSVILLE N. Y. WILL BE MOVED TO THE COMPANY'S HEADQUARTERS IN BETHPAGE N. Y. AND A DETAIL PARTS FACILITY A MANUFACTURING ENGINERING LAB AND OFFICE BUILDING ALL IN BETHPAGE WILL BE CLOSED MOST BETHPAGE EMPLOYEES WILL BE OFFERED TRANSFERS THE COMPANY SAID FROM HIS NARROW BORROWED OFFICE PREDRAG MEDJESKI IS DOING WHAT HE CAN FOR BOSNIAN NATIONAL PRIDE THE EXECUTIVE DIRECTOR OF THE OLYMPIC COMMITTEE OF BOSNIA AND HERZEGOVINA MR. MEDJESKI IS TRYING TO PERSUADE A BOBSLED BUREAUCRAT TO GIVE HIS COUNTRY'S BOB TEAM A STARTING SPOT AT THE WINTER OLYMPICS EVEN THOUGH THE SQUAD WON'T HAVE APPEARED IN THE THREE INTERNATIONAL MEETS REQUIRED THEY HAVE A GOOD EXCUSE HALF THE TEAM IS STUCK IN SARAJEVO AND THE ENTIRE SQUAD HASN'T COMPETED TOGETHER FOR TWO YEARS THE BOBSLEDDERS MR. MEDJESKI SAYS ARE DOING QUOTE DRY TRAINING QUOTE IN THE WAR TORN CITY THOUGH HE CONFESSES HE HAS NO IDEA WHAT THAT ENTAILS MR. MEDJESKI A SIX FOOT SEVEN INCH FORMER PROFESSIONAL BASKETBALL PLAYER WITH DEEPLY RINGED EYES IS THE ONLY MEMBER OF THE BOSNIAN OLYMPIC COMMITTEE LIVING ABROAD AND THEREFORE THE ONLY ONE ABLE TO DO MUCH FOR HIS COUNTRY'S ATHLETES IN A JOB THAT REQUIRES HIM BY TURNS TO BE NURSEMAID LOBBYIST QUARTERMASTER AND FUND RAISER HAGGLING WITH SPORTS OFFICIALS IS A NECESSARY PART OF WHAT HE DESCRIBES AS SAVING OUR SECOND BEST ATHLETES FOR THE FUTURE OF OUR SPORT BOSNIA'S FINEST HE SAYS HAVE LONG SINCE BEEN LOST FOR SPORT EITHER THEY'RE IN ARMIES OR THEY HAVE BEEN WOUNDED OR KILLED BOSNIA'S OLYMPIC HOPEFULS ARE ATHLETES WHO WERE TOO YOUNG TO FIGHT MOST WERE EIGHTEEN OR YOUNGER WHEN THEY SLIPPED OUT OF SARAJEVO LAST YEAR IN ALL THERE ARE EIGHTY EIGHT OF THEM STREWN AROUND THE WORLD AND MUCH OF MR. MEDJESKI'S TIME IS DEVOTED TO ARRANGING THEIR CARE AND TRAINING THERE IS A BASKETBALL TEAM IN SYCAMORE ILLINOIS CROSS COUNTRY SKIERS IN NORWAY BOXERS AND HANDBALL PLAYERS IN TURKEY AND LUGERS IN THE GERMAN ALPS MOST HOST COUNTRIES COVER BASIC EXPENSES BUT MR. MEDJESKI WHO HAS BEEN IN HIS JOB FOR A LITTLE MORE THAN A YEAR NONETHELESS MUST SCROUNGE UP EVERYTHING FROM VISAS TO SPORT SHOES FOR HIS CHARGES WHO ARE AS MUCH REFUGEES AS THEY ARE HOPEFUL OLYMPIANS BECAUSE THEY FLED WITHOUT BAGGAGE MR. MEDJESKI OFTEN HAS TO FIND THE ATHLETES STREET CLOTHES AS WELL AS TRAINING SUITS IT'S A LOT OF EFFORT FOR WHAT MUST SEEM TO MANY A QUIXOTIC IRRELEVANCE THE SPORTING FORTUNES OF A STATE BATTLING FOR ITS LIFE BUT FOR THE FORTY YEAR OLD MR. MEDJESKI SURVIVAL IS EXACTLY WHAT HIS WORK IS ABOUT NOT ONLY SAVING THE LIVES OF ATHLETES BUT ALSO OF A SET OF IDEALS IT GALLS HIM WHEN OTHERS CAN'T GRASP THIS AND HE IS PARTICULARLY PIQUED THAT AN OLYMPIC RELATED CHARITY IN LILLEHAMMER NORWAY RAISING MONEY FOR SARAJEVO REFUSES TO GIVE A SMALL PERCENTAGE OF ITS FUNDS TO HIS ORGANIZATION LILLEHAMMER IS THE SITE OF THE OLYMPIC GAMES IN SPORT WE HAVE KEPT THE UNIVERSALITY OF BOSNIA HERZEGOVINA ALIVE MY ORGANIZATION'S PRESIDENT IS A CROAT THE SECRETARY GENERAL IS A MUSLIM AND I'M A SERB AND WE DON'T MAKE ANY DISTINCTION AMONG THE BOYS AND GIRLS QUOTE ON THE TEAM SAYS MR. MEDJESKI THIS IS OUR BASE FOR THE FUTURE HAVING THE ATHLETES OF ALL ETHNIC GROUPS TOGETHER I HOPE SPORTS AFTER THE WAR WILL HELP TO REBUILD BROKEN BRIDGES BETWEEN PEOPLE INDEED THE INTERNATIONALISM OF THE OLYMPICS AND THE MULTICULTURALISM OF SARAJEVO ARE CONNECTED I ALWAYS LOVED OLYMPISM HE RECALLS IT'S WHAT BROUGHT ME TO SARAJEVO BEFORE THE NINETEEN EIGHTY FOUR WINTER GAMES FOR WHICH THE BELGRADE NATIVE WAS AN ORGANIZER HE STAYED ON TO WORK IN THE TOURIST BUSINESS AND MADE SARAJEVO HIS HOME CONVINCING POTENTIAL DONORS THAT HIS WORK IS ABOUT THE FUTURE OF BOSNIAN ETHNIC TOLERANCE IS NONE TOO EASY SO FAR THE JAPANESE OLYMPIC COMMITTEE HAS MADE THE ONLY SIZABLE CASH GIFT THREE HUNDRED TWENTY THOUSAND DOLLARS THE GERMAN OLYMPIC COMMITTEE HAS PROVIDED MR. MEDJESKI WITH HIS OFFICE HIS PERSONAL EXPENSES ARE BEING COVERED BY THE GERMANS BUT HE HAS NO IDEA HOW THEY WILL BE REPAID HE IS MOST DISTURBED BY THE UNITED NATIONS' REFUSAL TO ALLOW ANY ATHLETES TO LEAVE SARAJEVO ON THE RETURN FLIGHTS OF RELIEF MISSIONS A THICK LOG OF FAXES AND LETTERS TO U. N. OFFICIALS AND VARIOUS FOREIGN MINISTRIES ATTESTS TO TIRELESS LOBBYING ALL HE HEARS IN RESPONSE HE SAYS IS THAT SPORT IS NOT A PART OF ANY U. N. RESOLUTIONS CONCERNING WAR IN BOSNIA STILL MR. MEDJESKI THINKS LAST MINUTE PRESSURE BY OLYMPIC OFFICIALS MAY YET DO THE TRICK AND GET THE BOBSLEDDERS OUT BEFORE THE START OF THE GAMES NEXT MONTH IF THEY DO HE WILL BE DELIGHTED AND SAYS QUOTE WE'LL HAVE MORE ATHLETES IN THE OLYMPIC VILLAGE WE BELONG THERE WE HAVE A PLACE THERE EARTHQUAKE RELATED DISPATCHES FROM SENIOR.NET A COMPUTER NETWORK FOR OLDER ADULTS SEEKING INFORMATION AND OFFERING COMFORT IN THE HOURS JUST AFTER THE DISASTER FROM FRANO AS MANY OF YOU KNOW OUR TWO CHILDREN LIVE IN SOUTHERN CALIFORNA WE ARE BOTH GRATEFUL THAT THEY ARE WELL AND WHO CARES ABOUT THE T. V.'S CHINA AND CRYSTAL ANYWAY A FUNNY THING DID HAPPEN THOUGH SUSIE'S FRIEND IN ENGLAND CALLED HER EARLY THIS MORNING WHEN SHE HEARD ABOUT THE DISASTER AND WAS ABLE TO GET THROUGH SUSIE KNOWING SHE COULD NOT REACH US ASKED HER FRIEND IN ENGLAND TO CALL US SO WE ARE REASSURED VIA LONDON ENGLAND STRANGE BUT WONDERFUL FROM FLIP TWO THOUSAND SIX HUNDRED THREE GINNY DES THE CAT AND I ARE IN FINE SHAPE JUST MINUS A LOT OF STEMWARE AND CRYSTAL OH BOY WE'RE JUST HAVING A LONG LONG AFTERSHOCK MUST BE IN THE NEIGHBORHOOD OF FIVE I'LL RUN OUT IN THE GARDEN IF YOU DON'T MIND FROM FLIP TWO THOUSAND SIX HUNDRED THREE THIS LAST AFTERSHOCK SOUNDED LIKE A LOCOMOTIVE COMING UP THE STREET I CHICKENED OUT AND RAN OUT INTO THE GARDEN BUT TONIGHT I'LL BE ABLE TO SLEEP THRU THEM I'M SURE FROM GERRIW SOMEONE WHO OBVIOUSLY HAD CALLED THE WRONG NUMBER LEFT A MESSAGE ON MY MACHINE AT SEVEN FORTY FIVE A. M. P. S. T. SAYING SHE WAS KIM'S MOTHER AND SHE IS ALRIGHT IF ANYONE KNOWS KIM'S MOTHER PLEASE SEE THAT KIM GETS THE MESSAGE FROM CONNIEACT PLEASE TAKE IT EASY FOR THE NEXT DAY OR TWO WE LEARNED IN THE LOMA PRIETA THAT THE SHOCK CAUSES A DEPRESSION AFTER A DAY OR TWO WHEN THE SHOCK WEARS OFF I WAS WEEPY FOR A DAY OR TWO SO BE GOOD TO YOURSELVES FROM A L. I. C. E. B. EIGHTY SEVEN OH THREE WE'VE JUST ABOUT ACCOUNTED FOR ALL OF THE SENIORNET MEMBERS THINK THERE ARE FOUR FIFTHS WE'VE HAD NO CONTACT WITH KEYWIZ HAD DAMAGE AND LOST AQUARIUM POLLY'S HOUSE DAMAGED AND PUTERS TV'S DAMAGED LARRY HAS BADLY CUT FOOT THAT REQUIRED TWENTY STITCHES THEY DO NOT HAVE WATER OR POWER KEEP THINKIN' ABOUT US FROM A L. I. C. E. B. EIGHTY SEVEN OH THREE IT'S ABOUT FOUR AM TUESDAY AND CAN'T SLEEP STILL HAVE NOT HEARD DIRECTLY FROM KIM ROGER AND BABY JOSHUA PHONES ARE A NIGHTMARE HERE KEEP POSTING WE NEED TO KNOW YOU'RE OUT THERE FROM BUDROB BILL YOU AND LINDA ARE INVITED TO BRING GUIDO AND COME CAMP OUT HERE FOR AS LONG AS YOU NEED THIS IS A SERIOUS INVITATION WHAT DOES GUIDO EAT FROM G. O. R. D. O. N. M. SIX SEVENTY EIGHT PRAYERS AND THOUGHTS WITH ALL THE FOLKS IN CALIFORNIA AND THE FORTY NINE R'S TOO TREASURY SECRETARY LLOYD BENTSEN LAUNCHED A CAMPAIGN TO OPEN FINANCIAL MARKETS IN EMERGING ECONOMIES TO U. S. BROKERS AND BANKS HE ALSO GAVE THE SECOND STRONG HINT IN TWO DAYS THAT THE U. S. MAY BE ON THE VERGE OF LIFTING ITS TRADE EMBARGO AGAINST VIETNAM QUOTE A STRATEGY OF ENGAGEMENT WITH VIETNAM MAY BE THE MOST EFFECTIVE WAY TO PROMOTE OUR GOAL OF ACCOUNTING FOR QUOTE MISSING SOLDIERS FROM THE WAR HE SAID IN A SPEECH TUESDAY TO THE THAI BANKERS ASSOCIATION I'M OPTIMISTIC THAT WE'LL FINALLY GET THAT BEHIND US HE SAID DECLINING TO BE MORE PRECISE THE EFFORT TO WIN FULL BUSINESS RIGHTS FOR U. S. FINANCIAL SERVICE COMPANIES WILL FOCUS ON ABOUT A DOZEN RAPIDLY GROWING COUNTRIES AROUND THE WORLD WITH HALF THE COUNTRIES IN ASIA THE BIGGEST POTENTIAL PRIZE OF THE PROGRAM WILL BE CHINA WHICH HAS HUGE CAPITAL NEEDS AND MANY COMPANIES AND INDIVIDUALS CLAMORING TO INVEST BUT NO INVESTMENT BANKING SYSTEM TO HELP MATCH INVESTORS WITH OPPORTUNITIES THE NON ASIAN COUNTRIES THE U. S. WILL FOCUS ON INCLUDE TURKEY HUNGARY ARGENTINA AND BRAZIL TO HELP IMPROVE MARKET ACCESS IN ASIA THE TREASURY IS CONSIDERING BOOSTING ITS STAFF IN THE AREA TO PUSH MORE EFFECTIVELY FOR CHANGE FINANCIAL SERVICES MAKE A MAJOR CONTRIBUTION TO ECONOMIC GROWTH MR. BENTSEN SAID THE SECTOR IS LIKE THE NERVOUS SYSTEM IT SENDS SIGNALS TO THE INDUSTRIAL MUSCLE DIRECTING CAPITAL AND INVESTMENT TO THE PROJECTS THAT PROMISE THE HIGHEST RETURN BECAUSE THE U. S. HAS THE BIGGEST MOST CREATIVE CAPITAL MARKETS IN THE WORLD ITS BANKS BROKERS INSURANCE COMPANIES AND ASSOCIATED ACCOUNTANTS AND LAWYERS HAVE A LARGE ADVANTAGE OVER COMPETITORS FROM OTHER COUNTRIES OR AT LEAST THEY DO WHEN THEY'RE ALLOWED TO COMPETE IN NINETEEN NINETY TWO THE U. S. HAD A SIXTY ONE BILLION DOLLAR TRADE SURPLUS IN FINANCIAL SERVICES COMPARED WITH A NINETY SIX BILLION DOLLAR MERCHANDISE TRADE DEFICIT THE GOAL OF THE U. S. PROGRAM IS THAT ALL COUNTRIES TREAT FOREIGN FINANCIAL SERVICE COMPANIES THE SAME WAY THEY REGULATE THEIR OWN COMPANIES FOR INSTANCE INDONESIAN LAW ALLOWS FOREIGN COMPANIES TO BE ONLY MINORITY OWNERS OF BANKS IN INDONESIA THAILAND WHICH IS IN THE PROCESS OF LIBERALIZING ACCESS TO ITS FINANCIAL MARKETS DOESN'T LET FOREIGN FIRMS BE MEMBERS OF THE THAI STOCK EXCHANGE JAPAN RESTRICTS ACCESS TO FOREIGN INSURANCE COMPANIES DURING THE RECENTLY COMPLETED EFFORT TO REWRITE WORLD TRADE RULES THE U. S. TRIED AND FAILED TO OPEN FINANCIAL SERVICES GLOBALLY BUT THE AGREEMENT PROVIDED A TWO YEAR WINDOW TO NEGOTIATE NEW FINANCIALSERVICE RULES IF THAT EFFORT FAILS THE U. S. WILL BE ABLE TO ACT AGAINST COUNTRIES THAT DON'T GIVE EQUITABLE TREATMENT TO U. S. FIRMS CONGRESS IS EXPECTED TO PASS THIS YEAR THE FAIR TRADE IN FINANCIAL SERVICES ACT WHICH EMBODIES THIS APPROACH MR. BENTSEN ACKNOWLEDGED THAT OPENING CLOSED FINANCIAL MARKETS CAN BE POLITICALLY AND ECONOMICALLY TRICKY HE SAID THE U. S. WOULDN'T DEMAND IMMEDIATE CHANGE AS LONG AS NATIONS MOVE CONSISTENTLY TOWARD MORE OPEN MARKETS SOUTH KOREA FOR INSTANCE IS ADEPT AT DELAYING THE ENACTMENT OF ANNOUNCED PLANS TO OPEN ITS FINANCIAL MARKETS WHILE IN BANGKOK MR. BENTSEN MET WITH A GROUP OF ELEVEN U. S. BANKERS INVESTMENT BANKERS AND INSURERS OPERATING IN ASIA TO HEAR THEIR CONCERNS JOHN WADSWORTH MORGAN STANLEY GROUP INCORPORATED'S REPRESENTATIVE IN HONG KONG SAID THE GROUP URGED HIM TO ASSIGN A FULL TIME TREASURY ATTACHE IN ASIA TO WORK ON MARKET OPENING MEASURES MR. BENTSEN SAID HE WOULD LOOK INTO IT THE STAKES ARE HIGH MR. WADSWORTH SAID THE MARKET VALUE OF STOCKS TRADED ON ASIAN STOCK EXCHANGES OUTSIDE OF JAPAN IS ONE TRILLION DOLLARS UP FROM ONE HUNDRED EIGHTY BILLION DOLLARS IN NINETEEN EIGHTY EIGHT HE PREDICTED THAT THE MARKET CAPITALIZATION OF STOCKS TRADED ON THE SHANGHAI STOCK EXCHANGE WILL BE TWO TRILLION DOLLARS IN TWO THOUSAND MR. BENTSEN'S NEXT STOP IS CHINA HOME SHOPPING NETWORK INCORPORATED SAID IT SELECTED WASHINGTON BASED M. C. I. COMMUNICATIONS CORPORATION AS ITS PRIMARY EIGHT HUNDRED SERVICE PROVIDER AN AGREEMENT VALUED AT THIRTY EIGHT MILLION DOLLARS UNDER THAT AGREEMENT THE ELECTRONIC RETAILER WILL EXPAND ITS M. C. I. EIGHT HUNDRED SERVICE HOME SHOPPING SAID IT HANDLES OVER ONE MILLION TOLL FREE CALLS EACH WEEK AEROFLOT RUSSIAN INTERNATIONAL AIRLINES SIGNED A LETTER OF INTENT TO LEASE FOUR BOEING SEVEN SIXTY SEVENS FOR USE ON ITS TRANS ATLANTIC ROUTES THE AIRCRAFT WILL BE LEASED FROM G. P. A. GROUP P. L. C. OF SHANNON IRELAND WHILE THE DEAL HASN'T YET BEEN MADE PUBLIC G. E. CAPITAL AVIATION SERVICES WHICH MANAGES G. P. A.'S ASSETS SIGNED THE LETTER OF INTENT WITH AEROFLOT LATE LAST WEEK QUOTE THEY'VE GOT TO GET THE VARIOUS APPROVALS AND SO DO WE QUOTE SAID TREVOR HENDERSON CHIEF MARKETING OFFICER FOR THE UNIT OF GENERAL ELECTRIC COMPANY OF FAIRFIELD CONNECTICUT BUT I DON'T SEE ANY PROBLEMS THERE IF THE DEAL RECEIVES THE NECESSARY GREEN LIGHTS AEROFLOT WILL TAKE DELIVERY OF THE AIRCRAFT BETWEEN APRIL AND JUNE OF THIS YEAR MR. HENDERSON SAYS THE DEAL CALLS FOR A STANDARD FIVE YEAR OPERATING LEASE FOR THE FOUR PLANES THE DEAL REPRESENTS AN IMPORTANT TOEHOLD IN RUSSIA FOR BOTH G. P. A. AND SEATTLE BASED BOEING COMPANY ALTHOUGH THE RUSSIAN ECONOMY IS IN A SHAMBLES MANY ANALYSTS BELIEVE ITS VAST GEOGRAPHY AND HUGE POPULATION PRESENT ENORMOUS OPPORTUNITIES FOR THE AVIATION INDUSTRY MOREOVER AEROFLOT RUSSIAN INTERNATIONAL STANDS OUT AS A CLEAR WINNER IN THE FRACTURED RUSSIAN AIRLINE SECTOR THE ONCE MONOLITHIC AEROFLOT HAS SPLINTERED INTO MORE THAN ONE HUNDRED SEPARATE COMPANIES MANY OF THEM STILL FLYING THE AEROFLOT COLORS BUT THE GOVERNMENT HAS GRANTED AEROFLOT RUSSIAN INTERNATIONAL EXCLUSIVE RIGHTS TO THE AEROFLOT BRAND NAME AND MADE IT THE COUNTRY'S MAIN INTERNATIONAL CARRIER AEROFLOT OFFICIALS IN MOSCOW COULD NOT BE REACHED FOR COMMENT ACCORDING TO MR. HENDERSON AEROFLOT WILL USE THE PLANES ON ITS NORTH ATLANTIC ROUTES CURRENTLY AEROFLOT FLIES SOVIET BUILT ILYUSHIN AIRCRAFT ON ITS TRANS ATLANTIC SERVICES TO MONTREAL NEW YORK SAN FRANCISCO CHICAGO AND WASHINGTON THE TWIN ENGINE SEVEN SIXTY SEVEN THREE HUNDRED E. R. THE MODEL AEROFLOT WILL RECEIVE SEATS AS MANY AS TWO HUNDRED SIXTY PEOPLE IN A TWO CLASS CONFIGURATION AND IS DESIGNED FOR LONG DISTANCE ROUTES WITH ONLY MODERATE TRAFFIC AEROFLOT DOES OPERATE SOME WESTERN JETLINERS FLYING FIVE AIRBUS INDUSTRIE TWIN ENGINE A. THREE TENS FROM MOSCOW TO LONDON TOKYO HONG KONG AND SYDNEY BUT ANALYSTS SAY AEROFLOT WHICH HAS ONE HUNDRED THREE SOVIET BUILT AIRCRAFT HAS BEEN ACTIVELY LOOKING FOR ADDITIONAL WESTERN WIDE BODY PLANES FOR ABOUT A YEAR BECAUSE OF PROBLEMS OBTAINING NEW PLANES FROM RUSSIAN FACTORIES THE STUMBLING BLOCK HAS BEEN HOW THE RUSSIAN CARRIER WOULD PAY FOR THE EXPENSIVE WESTERN EQUIPMENT THE LIST PRICE FOR THE FOUR SEVEN SIXTY SEVENS FOR EXAMPLE WOULD BE TWO HUNDRED EIGHTY MILLION DOLLARS G. P. A. HOWEVER HAS EXTENSIVE EXPERIENCE IN DEALING WITH DIFFICULT CASES G. P. A. HAS DONE DEALS WITH A LOT OF PEOPLE BANKS WOULDN'T TOUCH SAID CHRIS AVERY AVIATION ANALYST FOR PARIBAS CAPITAL MARKETS IN LONDON THE REASONING SEEMS TO BE THEY CAN GET THEIR PLANES BACK PRETTY QUICKLY IN FACT G. P. A.'S PORTFOLIO INCLUDES BOEING PLANES LEASED TO A NUMBER OF STATES FORMERLY IN THE FORMER SOVIET BLOC IN PARTICULAR TWO SEVEN THIRTY SEVENS WITH AIR UKRAINE AND ONE WITH LITHUANIAN AIRLINES G. P. A. USUALLY ENSURES THE CARRIER WILL HAVE ENOUGH HARD CURRENCY TO MAKE THE LEASE PAYMENTS BY REQUIRING THAT THE AIRCRAFT BE USED ON INTERNATIONAL ROUTES CURRENTLY G. P. A. HAS TWO OF THE SEVEN SIXTY SEVENS THAT WILL GO TO AEROFLOT PLACED WITH OTHER AIRLINES AND WILL TAKE DELIVERY OF THE FINAL TWO JETLINERS THIS SPRING GENERAL DYNAMICS CORPORATION SAID ITS LAND SYSTEMS DIVISION GOT A CONTRACT FROM THE ARMY'S TANK AUTOMOTIVE COMMAND FOR A KUWAIT PROJECT THE COMPANY SAID THE CONTRACT ISN'T TO EXCEED ONE HUNDRED FIFTY SEVEN MILLION DOLLARS AND WILL RUN FROM JANUARY NINETEEN NINETY FOUR THROUGH DECEMBER NINETEEN NINETY EIGHT GENERAL DYNAMICS SAID THE CONTRACT IS FOR CONTRACTOR LOGISTICS SUPPORT FOR THE M. ONE A TWO TANK PROGRAM IN KUWAIT CANADA'S NEW LIBERAL PARTY GOVERNMENT WHICH WON LAST FALL'S ELECTION ON A PROMISE OF JOBS FOR CANADIANS INTENDS TO CARRY THROUGH ON ITS PLEDGE BY GIVING QUOTE THE HIGHEST PRIORITY TO JOB CREATION AND ECONOMIC GROWTH QUOTE THE GOVERNMENT'S OBJECTIVES WERE SET OUT IN A SPEECH FROM THE THRONE AT THE OPENING OF A NEW SESSION OF PARLIAMENT THE SPEECH WRITTEN BY THE GOVERNMENT WAS READ TO PARLIAMENT BY GOVERNOR GENERAL RAY HNATYSHYN WITHIN DAYS OF TAKING OFFICE NOVEMBER FOURTH THE GOVERNMENT MOVED TO STRENGTHEN THE JOB MARKET BY LAUNCHING A SIX BILLION CANADIAN DOLLAR FOUR POINT FIVE FIVE BILLION U. S. DOLLARS PUBLIC WORKS PROGRAM IN COLLABORATION WITH PROVINCIAL AND MUNICIPAL GOVERNMENTS THE PROGRAM IS DESIGNED TO REDUCE UNEMPLOYMENT CURRENTLY ELEVEN POINT TWO PERCENT OF THE WORK FORCE THE GOVERNMENT'S DECLARATION TO PARLIAMENT HAD BEEN EXPECTED TO GIVE GREATER EMPHASIS TO ITS SERIOUS DEBT PROBLEM THE FEDERAL GOVERNMENT'S DEBT YESTERDAY REACHED FIVE HUNDRED BILLION CANADIAN DOLLARS OR SEVENTEEN THOUSAND THREE HUNDRED EIGHTY NINE CANADIAN DOLLARS FOR EACH CANADIAN THE DEBT BURDEN IS PROPORTIONATELY HEAVIER THAN THAT OF MOST OTHER MAJOR INDUSTRIAL COUNTRIES INCLUDING THE U. S. THE THRONE SPEECH SAID THE NEW GOVERNMENT'S FIRST BUDGET TO BE ANNOUNCED IN FEBRUARY WILL INCLUDE MEASURES TO BRING THE FEDERAL DEBT AND DEFICIT UNDER CONTROL IN A MANNER THAT IS COMPATIBLE WITH PUTTING CANADIANS BACK TO WORK BUT THE SPEECH DIDN'T HIGHLIGHT THE SERIOUSNESS OF THE COUNTRY'S DEBT PROBLEM OR SET OUT MEASURES FOR DEALING WITH IT THESE OMISSIONS MADE THE SPEECH SOUND LIKE A TRAVELOGUE ON LOS ANGELES THAT FORGOT TO MENTION THE EARTHQUAKE SAID PRESTON MANNING LEADER OF THE POPULIST REFORM PARTY THE LIBERAL GOVERNMENT REAFFIRMED THAT IT WILL REPLACE AN UNPOPULAR SEVEN PERCENT VALUE ADDED TAX INTRODUCED IN JANUARY NINETEEN NINETY ONE BY THE PREVIOUS PROGRESSIVE CONSERVATIVE PARTY GOVERNMENT BUT THE STATEMENT DIDN'T GIVE ANY INDICATION OF WHAT FORM THE REPLACEMENT TAX WOULD TAKE THE POLICY DOCUMENT ALSO SAID THE GOVERNMENT PLANS TO UNDERTAKE A MAJOR REFORM OF THE SOCIAL SECURITY SYSTEM TO BE COMPLETED WITHIN TWO YEARS THE REFORMS ARE EXPECTED TO TIGHTEN THE RULES OF THE COUNTRY'S UNEMPLOYMENT INSURANCE SYSTEM WHICH IS MUCH MORE GENEROUS THAN THAT OF THE U. S. STUDIES INDICATE THAT OUR UNEMPLOYMENT INSURANCE SYSTEM CONTAINS IMPORTANT DISINCENTIVES TO WORK A FINANCE DEPARTMENT REPORT SAID THE LIBERALS TOOK OVER THE GOVERNMENT AS THE ECONOMY WAS GAINING MOMENTUM LED BY STRONG EXPORTS TO THE U. S. THE GOVERNMENT HAS PREDICTED THAT THE ECONOMY WILL GROW THREE PERCENT THIS YEAR SAGE TECHNOLOGIES INCORPORATED SAID IT WILL ACQUIRE CBM INCORPORATED FOR CASH AND STOCK BOTH COMPANIES PROVIDE COMPUTER PRODUCTS AND SERVICES THE VALUE OF THE DEAL WAS NOT DISCLOSED GERALD A. POCH SAGE PRESIDENT AND CO CHAIRMAN SAID CLOSELY HELD CBM WILL MERGE WITH ITS AMERIDATA UNIT HELPING AMERIDATA EXPAND INTO COMMERCIAL AND GOVERNMENT SALES IN THE SOUTHEAST AND MIDWEST CBM HAS TWENTY FOUR OFFICES IN THOSE REGIONS SUNSCREENS ARE EFFECTIVE IN PREVENTING SUNBURN BUT MAY NOT PROVIDE PROTECTION AGAINST POTENTIALLY DEADLY MELANOMA SKIN CANCER A STUDY INVOLVING LABORATORY MICE SHOWS IN THE STUDY PUBLISHED IN TODAY'S ISSUE OF THE JOURNAL OF THE NATIONAL CANCER INSTITUTE RESEARCHERS AT THE UNIVERSITY OF TEXAS SAID THAT DESPITE SUNSCREENS MICE EXPOSED TO ULTRAVIOLET RAYS DEVELOPED MELANOMA TUMORS THE MOST SERIOUS FORM OF SKIN CANCER QUOTE THIS IS AN IMPORTANT RESULT QUOTE SAID DOCTOR ROBERT LEW A BIOSTATISTICIAN AT BRIGHAM AND WOMEN'S HOSPITAL IN BOSTON EVEN THOUGH A STUDY ON MICE IS INCONCLUSIVE REGARDING THE EFFECT ON HUMANS IT SUGGESTS THAT PEOPLE AT HIGH RISK THOSE THAT HAVE LIGHT COMPLEXION OR A FAMILY HISTORY OF MELANOMA SHOULD THINK TWICE ABOUT HOW LONG THEY ARE EXPOSED TO THE SUN EVEN IF THEY HAVE SUNSCREEN ON MOST EXPERTS AGREE THAT SUNSCREENS PLAY A SIGNIFICANT ROLE IN PROTECTING PEOPLE FROM NON MELANOMA SKIN CANCERS BUT THE LATEST STUDY SENDS OUT A STRONG PUBLIC HEALTH MESSAGE ABOUT THE DANGERS OF MELANOMA DOCTOR LEW SAID IT'S EASY FOR EVEN ME TO DECEIVE MYSELF INTO THINKING THAT I CAN OVERDO THE AMOUNT OF TIME SPENT IN THE SUN IN THE STUDY RESEARCHERS AT THE M. D. ANDERSON CANCER CENTER IN HOUSTON ALSO SUGGESTED THAT SINCE SUNSCREENS ALLOW PEOPLE TO ENDURE LONGER SUN EXPOSURE BY REDUCING SWELLING OF THE SKIN THEY MAY ACCELERATE THE ONSET OF MELANOMA BY PROLONGING EXPOSURE TO ULTRAVIOLET RAYS MELANOMA USUALLY STARTS AS A LARGE IRREGULAR SHAPED DISCOLORATION ON THE SKIN THAT DOESN'T ORDINARILY ITCH OR HURT AND IS EASY TO IGNORE HOWEVER UNLESS THE TUMOR IS SURGICALLY REMOVED AT AN EARLY STAGE IT CAN SPREAD TO OTHER ORGANS OF THE BODY AND CAN BE FATAL A NINETEEN NINETY TWO FEDERAL STUDY SHOWED THAT THE DEATH RATE FOR MALIGNANT MELANOMA IS RISING SHARPLY IN THE U. S. THE MORTALITY RATE AMONG MEN SHOT UP FIFTY PERCENT BETWEEN NINETEEN SEVENTY THREE AND NINETEEN EIGHTY EIGHT TO THREE POINT THREE PER ONE HUNDRED THOUSAND FROM TWO POINT TWO FOR WOMEN THE MORTALITY RATE IN THE SAME PERIOD ROSE TWENTY ONE PERCENT TO ONE POINT SEVEN FROM ONE POINT FOUR PER ONE HUNDRED THOUSAND THE BIGGEST INCREASE IN MORTALITY OCCURRED AMONG MEN AGE FIFTY AND OLDER SCHERING PLOUGH CORPORATION THE LEADING PRODUCER OF SUNSCREEN CALLED THE RESULTS OF THE STUDY QUESTIONABLE NOTING THAT THE RESEARCHERS USED A SUNLAMP INSTEAD OF A SOLAR SIMULATOR TO IRRADIATE THE MICE SCHERING BASED IN MADISON N. J. SAID A SUN LAMP PRODUCES CERTAIN ULTRAVIOLET RADIATION THAT COULD SKEW THE RESULTS IT SEEMS THAT JUST ABOUT EVERY YEAR SOME NEW SCARE COMES UP ABOUT SUNSCREENS A COMPANY SPOKESMAN SAID HE NOTED THAT SUNSCREENS HAD BEEN ENDORSED BY VARIOUS MEDICAL GROUPS AS PROVIDING PROTECTION AGAINST VARIOUS SKIN CANCERS SCHERING HAD ESTIMATED SALES OF ONE HUNDRED THIRTEEN POINT FIVE MILLION DOLLARS FROM SUNSCREEN PRODUCTS FOR THE TWELVE MONTHS ENDED MAY THIRTIETH NINETEEN NINETY THREE ACCORDING TO INFORMATION RESOURCES INCORPORATED SKIN CANCER FEARS PERHAPS LINKED TO CONCERN THAT OZONE DEPLETION HAS INCREASED THE AMOUNT OF ULTRAVIOLET RADIATION REACHING THE EARTH HAVE HELPED BOOST SUN CARE PRODUCTS DESPITE THE TENTATIVE CONCLUSIONS OF THE STUDY THE RESEARCHERS STRESSED THAT PEOPLE SHOULD USE SUNSCREEN TO PROTECT AGAINST SUNBURN AND VARIOUS SKIN CANCERS ALTHOUGH THEY SAY PROTECTIVE CLOTHING IS PREFERABLE IN A COMMENTARY ACCOMPANYING THE REPORT DOCTOR LEW AND A COLLEAGUE DOCTOR HOWARD KOH A SKIN ONCOLOGIST AT BOSTON UNIVERSITY NOTE THAT THE REGULAR USE OF SUNSCREEN WITH A SUN PROTECTION FACTOR OF FIFTEEN DURING THE FIRST EIGHTEEN YEARS OF LIFE CAN CUT BY SEVENTY EIGHT PERCENT THE LIFETIME INCIDENCE OF NON MELANOMA SKIN CANCER DOCTOR CHERRIE K. DONAWHO AN ASSISTANT IMMUNOLOGIST AT M. D. ANDERSON AND ONE OF THE AUTHORS OF THE STUDY SAID THE RESULTS WERE UNEXPECTED SINCE SUNSCREENS ARE KNOWN TO PROTECT AGAINST NON MELANOMA SKIN CANCERS SWELLING AND SUNBURN I REALLY THOUGHT THEY WOULD PROTECT AGAINST MELANOMA IN MICE SHE SAID AMONG HUMANS CHRONIC EXPOSURE TO THE SUN HASN'T GENERALLY BEEN LINKED TO A HIGHER MELANOMA RISK SHE SAID DOCTOR PETER WOLF PREVIOUSLY OF M. D. ANDERSON AND NOW AT THE UNIVERSITY OF GRAZ IN AUSTRIA ALSO AUTHORED THE STUDY THE STUDY WAS CONDUCTED ON LABORATORY MICE WHOSE EARS AND TAILS WERE TREATED WITH COMMONLY USED SUNSCREENS MICE EXPOSED TO ULTRAVIOLET RADIATION FROM SUNLAMPS AND THEN INJECTED WITH MELANOMA SKIN CANCER CELLS DEVELOPED MORE MALIGNANT TUMORS THAN UNEXPOSED MICE WESTERN COMPANY OF NORTH AMERICA SAID IT HAS BEGUN ITS OFFER TO PURCHASE ALL OF ITS TWELVE AND SEVEN EIGHTHS PERCENT SENIOR NOTES DUE TWO THOUSAND TWO THE OIL FIELD SERVICES COMPANY SAID THE PRICE OFFERED FOR THE SENIOR NOTES IS ONE THOUSAND ONE HUNDRED NINETY DOLLARS FOR EACH ONE THOUSAND DOLLARS OF PRINCIPAL AMOUNT OUTSTANDING THERE IS ONE HUNDRED MILLION DOLLAR PRINCIPAL AMOUNT OUTSTANDING AND THE SCHEDULED EXPIRATION DATE OF THE OFFER IS FEBRUARY FOURTEENTH ARX INCORPORATED SAID ITS AEROFLEX LABORATORIES UNIT PAID FIVE POINT SEVEN MILLION DOLLARS FOR ALL OPERATING ASSETS OF GENERAL ELECTRIC COMPANY'S MARCONI CIRCUIT TECHNOLOGY CORPORATION UNIT THE COMPANY MAKES VARIOUS MICROELECTRONICS PRODUCTS FOR ALL THE FUMBLED INITIATIVES AND HALF MEASURES THAT CHINA HAS TAKEN TO REFORM ITS MONEY LOSING STATE ENTERPRISES THE SECOND LIFE OF SHANGHAI PETROCHEMICAL COMPANY OFFERS A RAY OF HOPE FEW OLD FACTORIES ANYWHERE IN THE COMMUNIST OR FORMERLY COMMUNIST WORLD CAN BOAST THE KIND OF TURNAROUND THAT CHINA'S LARGEST PETROCHEMICAL COMPANY AND ITS NINTH LARGEST STATE RUN ENTERPRISE EXPERIENCED LAST YEAR WHILE TWO THIRDS OF CHINA'S THIRTEEN THOUSAND INDUSTRIAL BEHEMOTHS SAW A DEFICIT OR STRUGGLED TO BREAK EVEN SHANGHAI PETROCHEMICAL SPENT MOST OF THE YEAR TRYING TO KEEP TRACK OF ITS BULGING BANK BALANCE AND SOARING MARKET VALUE QUOTE WE'RE THE DOW CHEMICAL OF CHINA QUOTE SAID WANG JIMING SHANGHAI PETROCHEMICAL'S EFFUSIVE CHAIRMAN IN A RECENT INTERVIEW I LOVE MY JOB EVERYONE IS PAYING ATTENTION TO US THE COMPANY REVAMPED UNDER THE SUPERVISION OF MERRILL LYNCH AND COMPANY LAST YEAR JOINED A CHINESE STEELMAKER AUTO MAKER AND BREWERY IN ISSUING STOCK ABROAD THE COMPANIES BLAZED A REFORM TRAIL FOR CHINA'S AILING STATE SECTOR AND AS MANY AS TWENTY OTHER STATE COMPANIES WILL FOLLOW SUIT THIS YEAR IN THE U. S. SHANGHAI PETROCHEMICAL IS TRADED IN THE FORM OF AMERICAN DEPOSITARY SHARES ON THE NEW YORK STOCK EXCHANGE THE STOCK'S VALUE HAS MORE THAN DOUBLED SINCE ITS OFFERING IN JULY THE A. D. R.S WERE QUOTED AT FORTY ONE POINT EIGHT SEVEN FIVE DOLLARS UP TWENTY FIVE CENTS TUESDAY EVEN AFTER ITS RESTRUCTURING HOWEVER SHANGHAI PETROCHEMICAL MUST BALANCE DEMANDS OF ITS NEW INVESTORS WITH THOSE OF BEIJING'S BUREAUCRATS THE COMPANY'S REFORM IS A TEST OF WHETHER CHINA CAN OVERCOME THE LEGACY OF CENTRAL PLANNING BEFORE IT SCRAPS THE CENTRAL PLAN MAJOR BUSINESS DECISIONS INCLUDING THE COMPANY'S PRODUCT LINEUP STAFFING LEVELS AND POSSIBLE JOINT VENTURES WITH FOREIGN CONCERNS DEPEND ON CHINA NATIONAL PETROLEUM CORPORATION OR SINOPEC THE COMPANY'S MAJORITY SHAREHOLDER AND PARENT FOR SHANGHAI PETROCHEMICAL MINISTRY LEVEL SINOPEC IS THE GHOST OF CENTRAL PLANNING IN THE GARB OF A MODERN INVESTOR SINOPEC AND THE CENTRAL GOVERNMENT STILL CONTROL ABOUT FORTY PERCENT OF SHANGHAI PETROCHEMICAL'S OUTPUT AND PROVIDE ALMOST ONE HUNDRED PERCENT OF ITS PRIMARY RAW MATERIAL CRUDE OIL AT SIXTY PERCENT OF WORLD MARKET PRICES THOSE PERCENTAGES WILL INEVITABLY CHANGE COMPANY OFFICIALS SAID BUT DECISIONS ABOUT HOW AND WHEN ARE IN THE HANDS OF BUREAUCRATS IN AN ATTEMPT TO ENSURE STEADY PROFIT GROWTH AMID AN UNCERTAIN ENVIRONMENT THE COMPANY HAS DECIDED TO MOVE AWAY FROM ITS HISTORICAL SPECIALTY INTERMEDIATE PETROCHEMICAL AND PETROLEUM PRODUCTS AND INCREASE PRODUCTION OF DOWNSTREAM AND HIGHER VALUE ADDED PRODUCTS SUCH AS POLYPROPYLENE FIBER POLYESTER STAPLES SYNTHETIC FIBERS PLASTICS AND RESINS DOWNSTREAM REFERS TO THE REFINEMENT OF OIL INTO VARIOUS PRODUCTS AS LONG AS A SUBSTANTIAL PROPORTION OF THE COMPANY'S PRODUCT REMAINS CONTROLLED BY THE STATE THE STRATEGY SEEMS TO HAVE PROMISE SINOPEC ON THE WHOLE CONTROLS FEWER DOWNSTREAM PRODUCTS WHICH ALLOWS PROFIT MARGINS OF TWENTY FIVE PERCENT OR MORE IN CHINA'S HEAVILY PROTECTED MARKET IN NINETEEN NINETY THREE A SHARP REDUCTION IN STATE CONTROL OF OUTPUT PRICES CONTRIBUTED HEAVILY TO SHANGHAI PETROCHEMICAL'S PROFIT GROWTH FIRST HALF SALES JUMPED TO FOUR HUNDRED THIRTY FIVE POINT FOUR MILLION DOLLARS AND PROFITS MORE THAN DOUBLED FROM THE COMPARABLE NINETEEN NINETY TWO PERIOD TO FIFTY THREE POINT SEVEN MILLION DOLLARS COMPANY OFFICIALS HOPE THE CONTINUED SHIFT TOWARD DOWNSTREAM PRODUCTS WILL BOOST PROFITS EVEN MORE THE COMPANY HAS STARTED CONSTRUCTION ON AN EIGHT HUNDRED THOUSAND TON RESIDUAL OIL PROCESSING PLANT THAT WILL ALLOW IT TO PRODUCE HIGHER GRADE PETROLEUM PRODUCTS IT RECENTLY ANNOUNCED A JOINT VENTURE WITH A LOCAL COMPANY TO PRODUCE AND SELL A RANGE OF OTHER PLASTICS PRODUCTS ABOUT TWO WEEKS AGO THE COMPANY INVESTED SIX MILLION DOLLARS TO TAKE CONTROL OF TWO LOCAL COMPANIES INVOLVED IN SUCH BUSINESSES AS GAS STATIONS AND REAL ESTATE MANY ANALYSTS SEE RAPID DIVERSIFICATION AS THE BEST WAY TO ADJUST TO UNPREDICTABLE STATE CONTROLS AND POTENTIAL PRICE RISES OF RAW MATERIALS THIS KIND OF PROBLEM IS UNAVOIDABLE FOR ANY STATE FIRM IN CHINA SHANGHAI PETROCHEMICAL AT LEAST HAS A PLAN TO DEAL WITH IT SAID STANLEY NG AN ANALYST WITH STANDARD CHARTERED SECURITIES IN HONG KONG JOHN CROSSMAN MANAGER OF JARDINE FLEMING'S SHANGHAI OFFICE SAID THE MOVE TO DOWNSTREAM PRODUCTS WILL HELP ABSORB EXCESS LABOR AS WELL BUT SOME FOREIGN PETROCHEMICAL COMPANY EXECUTIVES REMAIN SKEPTICAL THEY SAID FOREIGN COMPANIES SALIVATE AT THE PROSPECT OF GREATER ACCESS TO CHINA'S DOWNSTREAM PETROCHEMICAL MARKET AS THE COUNTRY SEEKS TO JOIN THE GENERAL AGREEMENT ON TARIFFS AND TRADE BY THE END OF THIS YEAR A GOAL THAT WOULD REQUIRE DEEP TARIFF REDUCTIONS TARIFFS ON PETROCHEMICAL IMPORTS NOW AVERAGE ABOUT THIRTY PERCENT FOREIGNERS POINT TO THEIR EXPERIENCE IN CHINA'S SOUTHERN SPECIAL ECONOMIC ZONES WHERE LOW TARIFF LEVELS HAVE ALLOWED FOREIGN CONCERNS TO TAKE DOMINANT POSITIONS IN SOME PRODUCT AREAS ONE AMERICAN COMPANY EXECUTIVE SAID SHANGHAI PETROCHEMICAL WILL NEVER BECOME A WORLD COMPETITOR UNLESS IT SOLIDIFIES ITS CORE OPERATIONS INSTEAD OF INVESTING IN UNPROVEN AREAS HE PUT THE BLAME HOWEVER ON SINOPEC RATHER THAN ON THE COMPANY ITSELF WHICH HE SAID HAS UNUSUALLY COMPETENT MANAGERS THEY'VE GOT THEIR FEET STUCK IN THE STATE PLAN IN A NUMBER OF WAYS SAID THE AMERICAN COMPANY EXECUTIVE QUOTE PETROCHEMICALS ARE A LOW PRICED COMMODITY ITEM YOU HAVE TO BE LEAN TO SURVIVE SHANGHAI PETROCHEMICAL WOULD LIKE TO TRIM ITS STAFF IT EMPLOYS ABOUT FORTY THOUSAND A MOVE THAT WOULD ALLOW IT TO DRAW MORE PROFITS FROM ITS LESS LABOR INTENSIVE UPSTREAM BUSINESS MR. WANG THE COMPANY'S CHAIRMAN DESCRIBED OVERSTAFFING AS HIS NUMBER ONE PROBLEM STILL ONE SHANGHAI PETROCHEMICAL OFFICIAL SAID SINOPEC WOULD NOT TOLERATE LAYOFFS FROM ONE OF ITS PROFITABLE SUBSIDIARIES ESPECIALLY WHEN LAYOFFS WOULD INCREASE THE WELFARE BURDEN OF SINOPEC ITSELF IF WE CATCH SOMEONE STEALING THEN MAYBE WE CAN FIRE HIM THE EXECUTIVE SAID SINOPEC INTERVENES IN BASIC STRATEGY DECISIONS AS WELL WHEN FRENCH PETROCHEMICAL CONCERN SOCIETE NATIONALE ELF AQUITAINE SOUGHT A JOINT VENTURE PARTNER IN CHINA SINOPEC ASSIGNED SHANGHAI PETROCHEMICAL TO PURSUE THE ONE BILLION DOLLAR PLUS TRANSACTION WHICH IS CURRENTLY IN THE FINAL STAGES OF A FEASIBILITY STUDY MR. WANG SAID ONLY THAT HE HAD NO OPINION ABOUT THE PROPOSED ALLIANCE AN ELF AQUITAINE EXECUTIVE BASED IN CHINA SAID THE REAL PLAYER IS SINOPEC SPC IS MANDATED TO STUDY THE PROJECT WITH US THE OFFICIAL SAID QUOTE WE DON'T HAVE MUCH DIRECT CONTACT QUOTE MERRILL LYNCH SHANGHAI PETROCHEMICAL'S UNDERWRITER CITED SINOPEC'S MAJORITY CONTROL AND THE UNCERTAINTIES OF STATE PLANNING AS TWO OF THE RISK FACTORS FOR INVESTORS MERRILL LYNCH ANALYSTS SAID THEY REMAIN OPTIMISTIC ABOUT THE COMPANY'S PROSPECTS IN THE LONG TERM BUT THEY HAVE QUESTIONS ABOUT SINOPEC SINOPEC HAS JUST BECOME A HUGE WELFARE STATE IN AND OF ITSELF SAID PAMELA CHENG AN ANALYST FOR MERRILL LYNCH IN HONG KONG IF IT SINOPEC IS NOT EFFICIENT IT MAY BE CAUSE FOR CONCERN DOWN THE ROAD A HALF DOZEN OF THE NATION'S LARGEST BANKS REPORTED SHARPLY HIGHER FOURTH QUARTER EARNINGS AIDED BY CONTINUED WIDE MARGINS BETWEEN LENDING RATES AND THE BANKS' OWN COST OF FUNDS STRONG TRADING RESULTS AND REDUCTIONS IN LOAN LOSS PROVISIONS THREE OTHER BANKS' PROFITS ROSE MODESTLY CITICORP REPORTED EARNINGS MORE THAN DOUBLED WHILE WELLS FARGO AND COMPANY PROFIT MORE THAN TRIPLED NET INCOME AT CHEMICAL BANKING CORPORATION ROSE FOURTEEN PERCENT NATIONSBANK FIFTY NINE PERCENT CHASE MANHATTAN CORPORATION EIGHTY FIVE PERCENT FIRST INTERSTATE BANCORP SEVENTY EIGHT PERCENT BANC ONE CORPORATION THIRTY NINE PERCENT COMERICA INCORPORATED TWO POINT SEVEN PERCENT AND CONTINENTAL BANK CORPORATION ELEVEN PERCENT DESPITE THE GOOD NEWS PRICES OF MANY BANK STOCKS FELL OR WERE ESSENTIALLY FLAT CONTINUING A TREND IN WHICH INVESTORS REACT TO HIGHER EARNINGS WITH PROFIT TAKING ALSO WELLS FARGO STOCK FELL TWO DOLLARS AND FIFTY CENTS A SHARE OR ONE POINT EIGHT PERCENT TO CLOSE AT ONE HUNDRED THIRTY THREE POINT SIX TWO FIVE DOLLARS WHILE FIRST INTERSTATE'S SHARES FELL SHARPLY TO SIXTY FIVE DOLLARS AND SEVENTY FIVE CENTS DOWN THREE DOLLARS OR FOUR POINT FOUR PERCENT COMERICA STOCK FELL TWELVE POINT FIVE CENTS OR ZERO POINT FIVE PERCENT TO CLOSE AT TWENTY SEVEN POINT ONE TWO FIVE DOLLARS AND CONTINENTAL COMMON STOCK ROSE TWELVE POINT FIVE CENTS OR ZERO POINT FIVE PERCENT TO CLOSE AT TWENTY SIX DOLLARS AND SEVENTY FIVE CENTS QUOTE PEOPLE HAVE MADE A LOT OF MONEY ON BANK STOCKS QUOTE JAMES ROSENBERG A BANK ANALYST AT LEHMAN BROTHERS THEY ARE LOOKING FOR EXCUSES TO SELL THEM FOR THE MONEY CENTER BANKS SECURITIES AND CURRENCY TRADING PROFITS CONTINUED TO BE STRONG ALTHOUGH TRADING REVENUE TYPICALLY DECLINES IN THE FOURTH QUARTER IT REMAINED VIRTUALLY CONSTANT LAST YEAR TRADING WAS SURPRISINGLY STRONG SAID JUDAH KRAUSHAAR A BANKING ANALYST WITH MERRILL LYNCH AND COMPANY WHO ALSO OFFERED A POTENTIAL EXPLANATION FOR THE GAINS SOME OF THE BANKS CHANGED THEIR COMPENSATION SCHEMES SO THAT THEIR TRADERS WERE MORE AGGRESSIVE IN DECEMBER CREDIT QUALITY CONTINUED TO IMPROVE DURING THE QUARTER ALLOWING SEVERAL BANKS TO REDUCE THEIR LOSS PROVISIONS NEW YORK BASED CITIBANK'S PROVISION FOR THE QUARTER FELL TO FOUR HUNDRED FOURTEEN MILLION DOLLARS DOWN SLIGHTLY FROM FOUR HUNDRED NINETEEN MILLION DOLLARS IN THE THIRD QUARTER AND FIVE HUNDRED FORTY EIGHT MILLION DOLLARS IN THE YEAR EARLIER PERIOD THE LOSS PROVISION AT NEW YORK BASED CHEMICAL DROPPED TO TWO HUNDRED EIGHTY SIX MILLION DOLLARS IN THE QUARTER COMPARED WITH TWO HUNDRED NINETY EIGHT MILLION DOLLARS IN THE THIRD QUARTER AND THREE HUNDRED FIFTEEN MILLION DOLLARS IN THE FOURTH QUARTER OF LAST YEAR PROVISIONS AT SAN FRANCISCO BASED WELLS FARGO DROPPED TO LEVELS BEFORE THE CRASH IN REAL ESTATE VALUES ACCORDING TO ROBERT ALBERTSON A BANK ANALYST WITH GOLDMAN SACHS AND COMPANY MOST PEOPLE THOUGHT IT WOULD TAKE YEARS FOR WELLS TO GET BACK TO THAT LEVEL MR. ALBERTSON SAID BUT THERE HAS BEEN AN ALMOST NOSE DIVING OF PROVISIONS ACROSS THE INDUSTRY WHILE LOAN GROWTH IS LESS IMPORTANT TO THE MONEY CENTER BANKS BECAUSE OF INCREASING EMPHASIS ON NONLENDING ACTIVITIES REGIONAL BANKS BENEFITED FROM AN APPARENT STEADY INCREASE IN LENDING PARTICULARLY TO CONSUMERS AT BANC ONE REPORTING NET INCOME OF MORE THAN ONE BILLION DOLLARS FOR THE FIRST TIME CONSUMER LOANS AT THE COLUMBUS OHIO CONCERN CLIMBED TO AN AVERAGE FIFTEEN POINT FIVE BILLION DOLLARS UP TWENTY TWO PERCENT FROM A YEAR EARLIER CREDIT CARD LOANS ROSE NINETEEN PERCENT TO AN AVERAGE FIVE POINT FIVE BILLION DOLLARS BUT FOR MANY BANKS NET INTEREST MARGINS WHICH PEAKED IN THE FIRST QUARTER LAST YEAR CONTINUED TO SLIP SLIGHTLY IN THE MOST RECENT PERIOD MARGINS WERE AFFECTED BY LOWER YIELDS FROM BOTH LOANS AND SECURITIES AS WELL AS A DECLINE IN SHORT TERM LOW YIELD DEPOSITS HOWEVER THE TRADING RESULTS LOWER LOAN LOSS PROVISIONS AND INCREASED LOANS MORE THAN COMPENSATED FOR THE TIGHTER MARGINS CHASE MANAGED TO BUCK THE TREND OF LOWER MARGINS ALTOGETHER IN PART BECAUSE OF EXTRAORDINARY ITEMS BUT ALSO BECAUSE OF AN INCREASE IN LOAN FEES AND A RISE IN MORTGAGE LOANS SEVERAL BANKS INCLUDING CITICORP CHEMICAL AND CHASE BENEFITED DURING THE QUARTER FROM ARGENTINA'S PAYMENT OF ONE POINT TWO BILLION DOLLARS TO SETTLE OVERDUE BORROWINGS MAINLY IN THE FORM OF FLOATING RATE BONDS CHASE ALSO EARNED A SPECIAL GAIN FROM ITS SALE OF REAL ESTATE ASSETS CHEMICAL'S GAIN WAS PARTIALLY OFFSET BY A FIFTY THREE MILLION DOLLAR SPECIAL CHARGE RESULTING FROM THE LAUNCH OF ITS NEW CO BRANDED SHELL OIL MASTERCARD ALONG WITH THE IMPROVED EARNINGS MANY BANKS ANNOUNCED DRAMATIC IMPROVEMENTS IN OVERALL ASSET QUALITY CHASE DECREASED ITS DISPOSITION PORTFOLIO BY FIVE HUNDRED MILLION DOLLARS DURING THE QUARTER REDUCING THE BALANCE TO TWO HUNDRED TWENTY TWO MILLION DOLLARS AT YEAR END CHEMICAL'S NONPERFORMING ASSETS FELL BY SIX HUNDRED SEVEN MILLION DOLLARS DURING THE QUARTER DOWN TO THREE POINT FIVE BILLION DOLLARS AT YEAR END IN RESPONSE TO CITICORP'S IMPROVING BALANCE SHEET MOODY'S INVESTORS SERVICE INCORPORATED SAID IT IS CONSIDERING A POSSIBLE UPGRADE FOR CITICORP SENIOR DEBT NOW RATED B. A A ONE A CHANGE WOULD AFFECT ABOUT THIRTY FOUR BILLION DOLLARS IN DEBT CONTINENTAL BANK IS BASED IN CHICAGO FIRST INTERSTATE IN LOS ANGELES NATIONSBANK IN CHARLOTTE N. C. COMERICA IN DETROIT AND CHASE MANHATTAN IN NEW YORK BUILDERS WAREHOUSE ASSOCIATION INCORPORATED UNVEILED ITS NEW QUOTE INTERIORS PLUS QUOTE CONCEPT STORE WHICH IT HAS BEGUN FRANCHISING THE COMPANY SAID THE STORES WILL OFFER VARIOUS HOME DECORATIONS AND WILL BE DESIGNED PRIMARILY FOR PROFESSIONAL BUILDERS AND REMODELERS THE COMPANY SAID THE FIRST INTERIORS PLUS STORE SHOULD OPEN NEXT WEEK MORRISON KNUDSEN CORPORATION SAID THE SANTA FE RAILWAY WILL LEASE TWO OF ITS RECENTLY DEVELOPED SWITCHER LOCOMOTIVES WHICH ARE POWERED BY LIQUEFIED NATURAL GAS SANTA FE A UNIT OF SANTA FE PACIFIC CORPORATION SCHAUMBURG ILLINOIS WILL LEASE THE LOCOMOTIVES FOR THREE YEARS AFTER DELIVERY THIS SPRING FINANCIAL TERMS WERE NOT DISCLOSED SOBERS THE U. S. FOR THE CLINTON ADMINISTRATION THIS WEEK IS TURNING INTO THE WOOZY MORNING AFTER THE BIG RUSSIA PARTY BUT THAT'S NOT ALL BAD BECAUSE IT'S TIME FOR A MORE SOBER LOOK AT WHERE RUSSIA IS HEADED AND HOW THE U. S. CAN USE WHAT LITTLE INFLUENCE IT HAS ALONG THE WAY THE SOBERING UP IS OCCURRING OF COURSE BECAUSE AS SOON AS PRESIDENT CLINTON FINISHED PLEDGING HIS SUPPORT FOR ECONOMIC REFORMERS IN MOSCOW AND LEFT TOWN THOSE SAME REFORMERS BEGAN BAILING OUT OF THE GOVERNMENT ECONOMICS MINISTER YEGOR GAIDAR THE PERSONIFICATION OF ECONOMIC REFORM RESIGNED IN DISGUST AND IT'S BECOMING CLEAR THAT BORIS FYODOROV THE FINANCE MINISTER AND ANOTHER REFORM CHAMPION WILL EITHER DEPART OR ASSUME A LESS PROMINENT ROLE IN THE NEW RUSSIAN GOVERNMENT ASIDE FROM FRUSTRATING MR. CLINTON THOSE DEVELOPMENTS BROUGHT A DOSE OF GLOOM TO THE ADMINISTRATION YESTERDAY GLOOM SEEMS APPROPRIATE PANIC HOWEVER ISN'T IT'S POSSIBLE THAT WHAT'S UNFOLDING IN MOSCOW IS THE END OF MEANINGFUL ECONOMIC REFORM AND THE RE EMERGENCE OF AN UNREFORMED CADRE OF OLD COMMUNISTS WITH NO INTEREST IN ECONOMIC REFORM OR COOPERATION WITH THE WEST BUT CLINTON ADMINISTRATION OPTIMISTS SEE ANOTHER POSSIBILITY THEY HOPE THAT IN THE AFTERMATH OF THE DECEMBER ELECTIONS AND THE INCREASED POWER GIVEN TO ULTRANATIONALISTS AND OLD COMMUNISTS RUSSIA MAY SIMPLY BE HEADED INTO A TEMPORARY PERIOD OF BAD POLICIES AND DETERIORIATING CONDITIONS ONCE THOSE POLICIES ARE DISCREDITED THAT MAY OPEN UP A NEW CHANCE FOR REFORM AT THAT POINT WITH THE RETROGRADES' CREDIBILITY SHOT THE REFORMERS CAN REGAIN THE UPPER HAND WITH THEIR AUTHORITY ENHANCED ANYBODY WHO HAS WATCHED THE RUSSIAN SAGA OVER THE LAST FIVE YEARS RECOGNIZES THIS CYCLE BOTH MIKHAIL GORBACHEV AND BORIS YELTSIN AT VARIOUS TIMES DRIFTED BETWEEN REFORMERS AND THE OLD GUARD THE FACT IS THAT NOBODY KNOWS WHICH SCENARIO TO BET ON NOW AMID THIS UNCERTAINTY WHAT'S NEEDED IS A MORE CONSISTENT AMERICAN APPROACH ONE THAT BOTH RECOGNIZES THE LIMITS OF AMERICAN ABILITY TO CONTROL EVENTS AND AVOIDS ACTUALLY HURTING THE VERY CAUSE OF ECONOMIC REFORM THIS KIND OF APPROACH BEGINS WITH AN ACKNOWLEDGEMENT THAT THE U. S. CAN'T CONTROL OR FORECAST EVENTS IN RUSSIA THAT WILL REQUIRE THE CLINTON ADMINISTRATION TO RESIST LIBERAL VOICES THAT CALL FOR PULLING THE PLUG ON THE NORTH ATLANTIC TREATY ORGANIZATION OR RADICALLY REDUCING AMERICAN DEFENSE BUDGETS JUST AS THE RUSSIA STORY WILL TAKE YEARS TO UNFOLD SO SHOULD THE ULTIMATE DECISIONS ABOUT PRECISELY WHAT TO DO WITH NATO AND WHAT LEVEL OF DEFENSE SPENDING IS SAFE IN THE LONG RUN THE SECOND STEP IS TO STOP OVERPROMISING THE AMOUNT OF HELP THE U. S. AND ITS ALLIES WILL GIVE TO RUSSIA THE WEST MAY NEVER RECOVER FROM THE BITTERNESS IT ENGENDERED IN MOSCOW BY PROMISING BIG AID PACKAGES IN BOTH NINETEEN NINETY TWO AND NINETEEN NINETY THREE WHICH RUSSIANS LATER DISCOVERED WERE MORE SMOKE THAN SUBSTANCE AND FINALLY THE ADMINISTRATION WOULD DO WELL TO MORE CLEARLY AND CONSISTENTLY SPELL OUT ITS APPROACH TO RUSSIAN ECONOMIC REFORM THE CLINTON ADMINISTRATION SHOT ITSELF IN THE FOOT A FEW WEEKS AGO BY PROCLAIMING THAT RUSSIA'S ECONOMIC QUOTE SHOCK THERAPY QUOTE HAD OFFERED THE RUSSIAN PEOPLE TOO MUCH SHOCK AND NOT ENOUGH THERAPY THAT LINE WHICH THE ADMINISTRATION SOON ABANDONED UNDERCUT THE REFORMERS BY SEEMING TO CONFIRM THEIR CRITICS' COMPLAINTS THAT ECONOMIC CHANGES WERE SIMPLY DOLING OUT PAINFUL MEDICINE WITHOUT OFFERING ANY RELIEF TO THE RUSSIAN PEOPLE THE FACT IS THAT SO FAR AT LEAST RUSSIA HASN'T HAD EITHER ENOUGH SHOCK NOR ENOUGH THERAPY THE SENSIBLE APPROACH FOR NOW IS TO KEEP FUNNELING IN PLENTY OF DIRECT AMERICAN AID PARTICULARLY AID THAT WILL REACH BEYOND MR. YELTSIN'S CONFUSED GOVERNMENT AND HELP SMALL BUSINESSES BIG COMPANIES THAT ARE STRUGGLING TO PRIVATIZE AND FREE MARKET EXPERIMENTERS OUTSIDE MOSCOW THAT WILL HELP KEEP NOURISHING THE SEEDS OF A FREE MARKET IN RUSSIA EVEN IF THE CENTRAL GOVERNMENT PULLS AWAY FROM A REFORMIST LINE AND IF THE THEORY ABOUT MOSCOW'S POLITICAL CYCLES PROVES CORRECT THE WEST SHOULD PREPARE NOW TO JUMP IN ONCE REFORMERS REGAIN THEIR POLITICAL FOOTING INTERNATIONAL FINANCIAL INSTITUTIONS SHOULD THEN BE READY TO MOVE IN WITH MORE MONEY PROVIDED MORE QUICKLY THAN BEFORE IN PARTICULAR ECONOMIC REFORMERS WILL NEED A BIG DOSE OF WESTERN HELP TO HOLD DOWN THE GOVERNMENT'S BUDGET DEFICIT WHICH IS DRIVING THE NEED TO PRINT MORE RUBLES AND FUELING THE INFLATION THAT ROBS THE AVERAGE RUSSIAN OF THE SENSE THAT ECONOMIC REFORMS ARE OFFERING ANYTHING POSITIVE THE INTERNATIONAL MONETARY FUND HAS BEEN TOO BUREAUCRATIC AND TECHNOCRATIC WHEN IT'S HAD OPENINGS TO HELP IN THE PAST NOW THAT THE ELECTIONS HAVE GIVEN THE WEST A GLIMPSE AT THE DARK SIDE OF CHANGE IN RUSSIA THERE WON'T BE ANY EXCUSE FOR LETTING THAT HAPPEN AGAIN THE INTERNATIONAL OLYMPICS COMMITTEE IS EXPECTED TO ANNOUNCE TODAY THAT C. B. S. INCORPORATED HAS WON THE RIGHTS TO TELEVISE THE NINETEEN NINETY EIGHT WINTER OLYMPICS IN NAGANO JAPAN THE EXPECTED WIN FOR AN ESTIMATED THREE HUNDRED SEVENTY FIVE MILLION DOLLARS FOLLOWS C. B. S.'S STUNNING LOSS IN DECEMBER OF THE RIGHTS TO A PACKAGE OF NATIONAL FOOTBALL LEAGUE GAMES THAT THE NETWORK HAD HELD FOR THIRTY EIGHT YEARS C. B. S. WAS OUTBID BY NEWS CORPORATION'S FOX NETWORK WHICH BID ONE POINT FIVE EIGHT BILLION DOLLARS OVER FOUR YEARS FOUR HUNDRED MILLION DOLLARS MORE THAN C. B. S. WAS WILLING TO OFFER BY CONTRAST C. B. S. WON THE RIGHTS TO THE NINETEEN NINETY EIGHT NAGANO GAMES THE NETWORK'S THIRD CONSECUTIVE WINTER OLYMPICS WITHOUT A FIGHT GENERAL ELECTRIC COMPANY'S N. B. C. AND CAPITAL CITIES SLASH A. B. C. INCORPORATED'S A. B. C. DECIDED TO PASS ON THE GAMES BECAUSE THEY WERE TOO EXPENSIVE GIVEN WHAT C. B. S. WAS WILLING TO BID AND THE I. O. C. AND FOX DECIDED MUTUALLY THAT FOX WHICH INITIALLY EXPRESSED AN INTEREST IN THE GAMES WOULD NOT BID SAID RICHARD POUND A MEMBER OF THE I. O. C.'S EXECUTIVE BOARD QUOTE WE AGREED WITH FOX THAT AT THIS TIME IN THEIR EVOLUTION AND OURS THE BEST THING FOR US WOULD BE TO NEGOTIATE WITH C. B. S. AND SEE IF WE COULD REACH AN AGREEMENT QUOTE MR. POUND SAID ADDING THAT FOX STILL NEEDS TO SHOW THAT IT CAN QUOTE DO A TERRIFIC JOB WITH THE PROPERTIES THEY HAVE NOW QUOTE C. B. S.'S WINNING BID OF THREE HUNDRED SEVENTY FIVE MILLION DOLLARS IS AN INCREASE OF TWENTY SEVEN PERCENT FROM THE TWO HUNDRED NINETY FIVE MILLION DOLLARS IT PAID FOR THE NINETEEN NINETY FOUR WINTER OLYMPICS IN LILLEHAMMER NORWAY WHICH BEGIN FEBRUARY TWELFTH WHILE C. B. S.'S COMPETITORS FELT THEY COULDN'T MAKE MONEY AT THAT LEVEL OF BIDDING C. B. S. BELIEVES OTHER FACTORS CAN MAKE UP FOR POTENTIAL FINANCIAL LOSSES FOR EXAMPLE THE NETWORK IS TRYING TO SUSTAIN A SPORTS DIVISION THAT SUDDENLY IS BEREFT OF SEVERAL TOP FLIGHT EVENTS INCLUDING MAJOR LEAGUE BASEBALL AND THE N. F. L. IN ADDITION THE WINTER GAMES A COMBINATION OF LIVE AND TAPED EVENTS WILL HELP C. B. S. AFFILIATE STATIONS WHICH DEPEND ON FEBRUARY RATINGS TO SET AD RATES THE AFFILIATES AGREED LAST WEEK TO GIVE THE NETWORK SOME FINANCIAL SUPPORT FOR THE GAMES C. B. S.'S SEVEN OWNED TELEVISION STATIONS WILL ALSO BENEFIT FROM HIGHER RATINGS DURING THE OLYMPICS C. B. S. IS ALSO BETTING THAT THE ECONOMY WILL IMPROVE AND THAT IT WILL BE ABLE TO RECOUP FROM ADVERTISERS THE RIGHTS FEES AS WELL AS PRODUCTION EXPENSES THAT ARE EXPECTED TO BE HIGH CONSIDERING THE COST OF DOING BUSINESS IN JAPAN AS BANCO ESPANOL DE CREDITO'S NEW MANAGERS WRESTLE WITH THE TASK OF ASSESSING A FINANCIAL SHORTFALL NOW THOUGHT LIKELY TO REACH AT LEAST SEVEN HUNDRED BILLION PESETAS FOUR POINT EIGHT FIVE BILLION DOLLARS A BATTLE IS BEING FOUGHT BEHIND THE SCENES OVER HOW MUCH OF THE BURDEN SHOULD BE BORNE BY THE BANK'S SHAREHOLDERS TO COVER THE SHORTFALL BANESTO'S NEW MANAGEMENT TEAM IS EXPECTED TO PROPOSE A PACKAGE INCLUDING AID FROM A CENTRAL DEPOSIT GUARANTEE FUND THE WRITING OFF OF MOST THE BANK'S THREE HUNDRED THIRTY BILLION PESETA CAPITAL AND RESERVES AND A SUBSEQUENT CAPITAL INCREASE THIS WOULD INVOLVE AMONG OTHER THINGS A REDUCTION IN THE NOMINAL VALUE OF BANESTO SHARES CURRENTLY SEVEN HUNDRED PESETAS TO FIVE HUNDRED PESETAS AND POSSIBLY SUBSTANTIALLY LOWER STILL UNDECIDED IS JUST HOW LARGE THIS REDUCTION SHOULD BE WHILE PURISTS INCLUDING OFFICIALS AT OTHER SPANISH BANKS ARGUE THAT THE WRITE OFF SHOULD BE TOTAL SHAREHOLDERS ARE TRYING TO PERSUADE THE SPANISH GOVERNMENT TO TAKE A SOFTER LINE REPRESENTATIVES OF SHAREHOLDER ASSOCIATIONS ARGUE THAT A TOTAL WRITE OFF WOULD BE UNFAIR TO THOSE INVESTORS WHO BOUGHT BANESTO SHARES ON THE BASIS OF OPTIMISTIC PREDICTIONS PUBLISHED BY J. P. MORGAN AND COMPANY THE NEW YORK BASED INVESTMENT BANK IN THE CONTEXT OF A BANESTO CAPITAL INCREASE IT LED LAST YEAR J. P. MORGAN AND THE SPANISH BANK'S DISCREDITED FORMER CHAIRMAN MARIO CONDE HAVE THEIR OWN INTERESTS TO DEFEND IN ADDITION TO LEADING THE CAPITAL INCREASE MORGAN INVESTED ONE HUNDRED SIXTY TWO MILLION DOLLARS OF ITS OWN AND ITS CLIENTS' MONEY IN A SEVEN POINT NINE PERCENT STAKE IN THE BANK MR. CONDE PLEDGED MOST OF HIS PERSONAL ASSETS IN RETURN FOR A SEVEN BILLION PESETA LOAN FROM BANCO CENTRAL HISPANO THAT ENABLED HIM TO PARTICIPATE IN THE CAPITAL INCREASE BANESTO SHARES WERE LAST QUOTED ON THE MADRID STOCK EXCHANGE AT ONE THOUSAND NINE HUNDRED NINETY FIVE PESETAS ON DECEMBER TWENTY EIGHTH THE DAY THE BANK OF SPAIN INTERVENED TO OUST MR. CONDE AND HIS ENTIRE BOARD BECAUSE OF FEARS OF A RUN ON DEPOSITS THE SHARES ARE CURRENTLY CHANGING HANDS IN SMALL QUANTITIES OUTSIDE THE OFFICIAL MARKET AT PRICES AVERAGING FIVE HUNDRED FIFTY PESETAS THE SEVEN HUNDRED BILLION PESETA SHORTFALL INCLUDES LOSSES FROM NONPERFORMING LOANS AND FROM THE BANK'S LEASING AND MORTGAGE UNITS AND FOREIGN INVESTMENTS AMONG OTHER THINGS HANGING OVER THE DEBATE IS SPAIN'S CREDIBILITY AS A FINANCIAL MARKETPLACE SPANISH AUTHORITIES ARE WORRIED ABOUT THE INVESTOR REACTION TO A REDUCTION IN THE VALUE OF BANESTO'S CAPITAL BUT BANKERS AND FINANCIAL ANALYSTS BELIEVE THAT A FAILURE TO MAKE SHAREHOLDERS PAY THE PRICE OF THE BANK'S MISMANAGEMENT COULD BE INTERPRETED AS A SIGN THAT SPAIN LACKS THE WILL OR THE ABILITY TO IMPOSE EFFECTIVE DISCIPLINE IN ITS FINANCIAL MARKETS ANY BAIL OUT OPERATION IN A NATION'S BANKING SYSTEM QUOTE POSES AN APPALLING DILEMMA IN TERMS OF THE FUTURE BEHAVIOR OF BANKS AND DEPOSITORS IN THAT IT UNDERMINES MARKET DISCIPLINE QUOTE SAYS RICHARD DALE PROFESSOR OF INTERNATIONAL BANKING AT SOUTHAMPTON UNIVERSITY IN ENGLAND UNLESS SHAREHOLDERS ARE FORCED TO ACCEPT THEIR SHARE OF THE COST OF SUCH A BAIL OUT HE OBSERVES YOU END UP UNDERMINING THE WHOLE CONCEPT OF RISK CAPITAL CANADIAN MUNICIPALITIES IN NOVEMBER ISSUED BUILDING PERMITS VALUED AT A SEASONALLY ADJUSTED TWO POINT ONE FOUR BILLION CANADIAN DOLLARS ONE POINT SIX TWO BILLION U. S. DOLLARS A SIX POINT SIX PERCENT INCREASE FROM TWO POINT OH ONE BILLION CANADIAN DOLLARS IN OCTOBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE NOVEMBER INCREASE FOLLOWED THREE CONSECUTIVE MONTHS OF DECLINE IN THE VALUE OF BUILDING AUTHORIZATIONS DAW TECHNOLOGIES INCORPORATED SAID IT RECEIVED A CONTRACT VALUED AT MORE THAN FIVE POINT SEVEN MILLION DOLLARS TO BUILD A CLEANROOM FOR A SEMICONDUCTOR MANUFACTURER THE COMPANY WASN'T IDENTIFIED A CLEANROOM IS AN ULTRA CLEAN ENVIRONMENTALLY CONTROLLED MANUFACTURING ROOM FREE OF EVEN THE SMALLEST PARTICLES FOR THE PRODUCTION OF HIGHLY SENSITIVE SEMICONDUCTORS DAW SAID IN A NEWS RELEASE THE COMPANY SAID THE NEW FACILITY WILL BE LOCATED IN COLORADO SPRINGS COLORADO CRANE COMPANY A MAKER OF INDUSTRIAL PRODUCTS FOR THE AEROSPACE AND CONSTRUCTION INDUSTRIES SAID IT WANTS TO ACQUIRE ILLINOIS BASED MARK CONTROLS CORPORATION FOR ABOUT FIFTY SIX POINT SIX MILLION DOLLARS CRANE WHICH TWO WEEKS AGO DISCLOSED A THIRTEEN POINT TWO PERCENT STAKE IN MARK CONTROLS SAID IT PLANS TO MEET WITH MANAGEMENT OF THE VALVE AND INSTRUMENT CONTROL MAKER TO DISCUSS A POSSIBLE THIRTEEN DOLLAR A SHARE CASH OFFER FOR THE SHARES IT DOESN'T ALREADY OWN MARK CONTROLS HAS A LITTLE MORE THAN FIVE MILLION SHARES OUTSTANDING CRANE'S OFFER IS THIRTY FIVE PERCENT HIGHER THAN A BID FROM AN INVESTOR GROUP REJECTED BY MARK CONTROLS LAST SPRING AND FORTY SIX PERCENT HIGHER THAN ITS STOCK PRICE BEFORE CRANE ANNOUNCED ITS INITIAL STAKE NEWS OF THE MERGER OFFER HELPED PUSH MARK CONTROL'S STOCK UP TWO POINT SIX TWO FIVE DOLLARS A SHARE TO THIRTEEN POINT EIGHT SEVEN FIVE DOLLARS UP TWENTY THREE PERCENT IN NASDAQ STOCK MARKET TRADING ON MORE THAN TEN TIMES AVERAGE VOLUME TWO WEEKS AGO WILLIAM E. BENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MARK CONTROLS SAID THE SKOKIE ILLINOIS INDUSTRIAL VALVE MANUFACTURER WAS NOT FOR SALE BUT YESTERDAY MR. BENDIX SAID HE SPOKE BRIEFLY WITH CRANE'S CHAIRMAN AND C. E. O. ROBERT S. EVANS AND SCHEDULED A MEETING WITH CRANE EXECUTIVES FOR NEXT WEDNESDAY TWO DAYS BEFORE MARK CONTROL'S REGULARLY SCHEDULED BOARD MEETING NEXT FRIDAY CRANE SAID THAT IT MAY BE WILLING TO INCREASE ITS PRICE IF A HIGHER BID IS JUSTIFIED BY MARK CONTROL'S BUSINESS PLAN AND OTHER CONFIDENTIAL INFORMATION MR. BENDIX SAID THE COMPANY HASN'T YET DECIDED WHETHER TO GIVE CRANE ACCESS TO THE CONFIDENTIAL INFORMATION IT REQUESTED IN NINETEEN NINETY TWO MARK CONTROLS HAD NET INCOME OF THREE POINT SEVEN MILLION DOLLARS OR SEVENTY THREE CENTS A SHARE ON SALES OF EIGHTY SIX POINT TWO MILLION DOLLARS CRANE HAD NINETEEN NINETY TWO PROFIT OF TWENTY FOUR POINT THREE MILLION DOLLARS OR SEVENTY NINE CENTS A SHARE INCLUDING A NONRECURRING CHARGE OF THIRTY NINE POINT FOUR MILLION DOLLARS ITS SALES WERE ONE POINT THREE BILLION DOLLARS KANEB PIPE LINE PARTNERS L. P. SAID ITS ST SERVICES PARTNERSHIP ACQUIRED A TERMINAL FROM TOTAL PETROLEUM INCORPORATED IN SALINA KANSAS TOTAL PETROLEUM INCORPORATED IS A UNIT OF TOTAL PETROLEUM NORTH AMERICA LIMITED KANEB SAID THE TERMINAL HAS SIXTY FIVE THOUSAND BARRELS OF STORAGE AND IS SUPPLIED BY KANEB PIPE LINE KANEB ALSO SAID ST SERVICES HAD PREVIOUSLY ACQUIRED A SEVENTY THOUSAND BARREL TERMINAL FROM STAR ENTERPRISES IN MONTGOMERY ALABAMA THE TWO TRANSACTIONS COST A COMBINED TWO POINT FIVE MILLION DOLLARS KANEB SAID THE COMPANY SAID IT EXPECTS THE TERMINALS TO JOINTLY CONTRIBUTE FIVE HUNDRED THOUSAND DOLLARS OF CASH FLOW TO THE PARTNERSHIP ANNUALLY SAVINGS BANK OF ROCKLAND SAID ITS SHAREHOLDERS APPROVED A PROPOSED MERGER WITH FIRST FIDELITY BANK NEW YORK A UNIT OF FIRST FIDELITY BANCORP LAWRENCEVILLE N. J. SAVINGS BANK OF ROCKLAND SHAREHOLDERS WILL RECEIVE NINE DOLLARS A SHARE FOR A TOTAL OF FIVE POINT NINE MILLION DOLLARS PENDING CERTAIN REGULATORY APPROVALS THE MERGER SHOULD BE COMPLETED WITHIN A COUPLE OF MONTHS THE COMPANY SAID SAVINGS BANK OF ROCKLAND HAS ASSETS OF ONE HUNDRED EIGHTY FIVE MILLION DOLLARS FIRST FIDELITY HAS ASSETS OF THIRTY THREE POINT EIGHT BILLION DOLLARS SONY CORPORATION OF AMERICA A UNIT OF SONY CORPORATION PLANS TO BUILD AN OPTICAL DISK MANUFACTURING CENTER IN SPRINGFIELD OREGON THE TWO HUNDRED FIFTY THOUSAND SQUARE FOOT FACILITY WILL MANUFACTURE A FULL LINE OF OPTICAL DISK PRODUCTS TO SERVE THE ENTERTAINMENT AND INFORMATION MARKETS SONY SAID THE INITIAL PHASE OF THE PROJECT WILL HAVE A CAPACITY OF THREE MILLION DISKS A MONTH AND WILL EMPLOY ABOUT THREE HUNDRED PEOPLE THE PLANT WHICH IS SCHEDULED TO OPEN IN THE SECOND HALF OF NINETEEN NINETY FIVE IS SONY'S FOURTH PRE RECORDED SOFTWARE MEDIA MANUFACTURING FACILITY IN THE U. S. THE COMPANY SAID THE UNEMPLOYED ARE CERTAINLY A BOON TO PUBLISHING MY DESK AND FLOOR ARE HIDING UNDER FIFTEEN BOOKS ALL PUBLISHED WITHIN THE LAST FEW MONTHS ALL PROMISING TO SPEED YOUR DEPRESSING JOB SEARCH TO A HAPPY CONCLUSION JOBS NINETY FOUR SIMON AND SCHUSTER SIX HUNDRED EIGHTY THREE PAGES SIXTEEN DOLLARS BY KATHRYN AND ROSS PETRASES PROMISES TO MAKE LOOKING FOR A JOB QUICK EASY AND EFFICIENT EFFICIENT CERTAINLY THERE'S A LOT OF WELL ORGANIZED INFORMATION IN IT FOR EXAMPLE THERE'S A COMPLETE LIST OF ADDRESSES AND PHONE NUMBERS ORGANIZED BY OCCUPATION BROADCASTING FOR INSTANCE INCLUDES TOP TELEVISION NETWORKS AND STATION OWNERS CABLE NETWORKS AND INDUSTRY DIRECTORIES MORE DETAIL ON EACH PROSPECTIVE EMPLOYER IS PROVIDED IN THE ADAMS JOBS ALMANAC NINETEEN NINETY FOUR BOB ADAMS INCORPORATED NINE HUNDRED SIXTEEN PAGES FIFTEEN DOLLARS THAN IN THE PETRASES' BOOK IT PROVIDES ABOUT A TWO HUNDRED WORD DESCRIPTION ON WHAT EACH OF HUNDREDS OF COMPANIES DO HOW MANY PEOPLE THEY EMPLOY AND IN SOME CASES THE PROJECTED NUMBER OF NEW HIRES FOR THE YEAR SUPPOSE YOU ARE LESS INTERESTED IN ADDRESSES PHONE NUMBERS AND GENERAL COMMENTS ABOUT THE OUTLOOK FOR VARIOUS EMPLOYMENT OPPORTUNITIES THAN IN METHODS LIKELY TO PRODUCE JOB OFFERS BOB GERBERG'S AN EASIER WAY TO CHANGE JOBS PRINCETON SLASH MASTERS PRESS THREE HUNDRED THIRTY SIX PAGES FOURTEEN DOLLARS AND NINETY FIVE CENTS OFFERS A PLAN HE CLAIMS HAS HAD A HIGH DEGREE OF SUCCESS ONE OF THE BOOK'S GOALS IS TO IMPROVE PEOPLE'S JOB SEARCHING TECHNIQUES MR. GERBERG'S STATISTICS SHOW THAT CURRENTLY MOST PEOPLE GET NEW JOBS USING EXISTING PERSONAL CONTACTS AND DIRECT REFERRALS FROM THEM WHILE TWENTY TWO PERCENT USE OTHER NETWORKING TECHNIQUES A METHOD HE STRONGLY ADVOCATES FOR PEOPLE WHO COME TO PRINCETON SLASH MASTERS THE CAREER MANAGEMENT AND OUTPLACEMENT FIRM HE WORKS FOR IS A CAREFULLY TARGETED DIRECT MAIL CAMPAIGN MR. GERBERG SAYS THAT TWENTY NINE PERCENT OF HIS FIRM'S CLIENTS GET THEIR JOBS THAT WAY JOYCE KENNEDY AND THOMAS MORROW WANT TO CHANGE JOB HUNTING IN A DIFFERENT WAY THIS IS NOT A BOOK FOR CYBERPHOBES IN ELECTRONIC JOB SEARCH REVOLUTION WILEY TWO HUNDRED SEVEN PAGES TWENTY NINE DOLLARS AND NINETY FIVE CENTS HARDBACK TWELVE DOLLARS AND NINETY FIVE CENTS PAPERBACK THEY SHOW YOU HOW TO GET YOUR RESUME TO HUNDREDS OF POTENTIAL EMPLOYERS TWENTY FOUR HOURS A DAY SEVEN DAYS A WEEK WITH LITTLE EFFORT AND LOW COST WHAT HAS BROUGHT ABOUT THIS REVOLUTION ARE THE SAME FACTORS THAT HAVE CAUSED SO MANY PEOPLE TO BE LAID OFF COST SAVINGS THE AUTHORS STATE THAT IT COSTS AN EMPLOYER ON AVERAGE FIVE THOUSAND FOUR HUNDRED DOLLARS TO HIRE A PROFESSIONAL OR MANAGERIAL PERSON AND THIRTY FIVE THOUSAND THREE HUNDRED DOLLARS IF A PRIVATE RECRUITING FIRM IS USED BUT IF THE SEARCH IS CARRIED OUT ELECTRONICALLY COSTS DROP TO A FRACTION OF THOSE NUMBERS IT BECOMES EASY FOR AN EMPLOYER TO HAVE A JOB DATABASE FIRM SEARCH THOUSANDS OF RESUMES LOOKING FOR JUST THE RIGHT PERSONA LEFT HANDED VIOLINIST WHO SPEAKS PORTUGUESE AND WANTS TO LIVE IN OMAHA THE BOOK DESCRIBES THE COSTS AND HOW TO FILE YOUR RESUME WITH A NUMBER OF DATABASES IN THEIR COMPANION BOOK ELECTRONIC RESUME REVOLUTION WILEY TWO HUNDRED THIRTY THREE PAGES TWENTY NINE DOLLARS AND NINETY FIVE CENTS HARDBACK TWELVE DOLLARS AND NINETY FIVE CENTS PAPERBACK MS. KENNEDY AND MR. MORROW CLAIM RESUMES HAVE TO BE WRITTEN IN A DIFFERENT STYLE WHEN THEY ARE BEING PREPARED TO BE READ BY A COMPUTER FOR INSTANCE IF YOU ARE LOOKING FOR WORK AS AN ACCOUNTANT INSERT BUZZWORDS LIKE COST ACCOUNTING REVENUE ACCOUNTING C. P. A. LEADERSHIP ET CETERA TO CATCH THE COMPUTER'S ELECTRONIC EYE AS OFTEN AS POSSIBLE BUT SUPPOSE YOU'VE HAD IT IN WORKING FOR OTHERS AND WOULD LIKE TO TRY TO MAKE YOUR LIVING WITHOUT A BOSS BY TRADING THE MARKETS TRADERS ARE THEIR OWN BOSSES HAVE UNLIMITED EARNING POTENTIAL AND THEY CAN TAKE TIME OFF ANY TIME THEY LIKE BEFORE YOU ARE COMPLETELY SEDUCED BY THOSE ARGUMENTS PICK UP TWO BOOKS BY ALEXANDER ELDER TRADING FOR A LIVING WILEY TWO HUNDRED EIGHTY NINE PAGES FORTY NINE DOLLARS AND NINETY FIVE CENTS AND STUDY GUIDE FOR TRADING FOR A LIVING WILEY ONE HUNDRED NINETY FOUR PAGES TWENTY SEVEN DOLLARS AND NINETY FIVE CENTS NOW A PROFESSIONAL TRADER AND PRACTICING PSYCHIATRIST DOCTOR ELDER JUMPED OFF A SOVIET SHIP IN ABIDJAN IVORY COAST IN NINETEEN SEVENTY FOUR AND WAS GRANTED POLITICAL ASYLUM IN THE U. S. HIS BOOK WHICH EXPLORES BOTH THE PSYCHOLOGICAL AND TECHNICAL ASPECTS OF TRADING IS DESIGNED TO TEST A PERSON'S EMOTIONAL AND PSYCHOLOGICAL MAKEUP FOR THE TRADING LIFE SOME OF THE PSYCHOLOGICAL STRATEGIES HE PROPOSES HAVE THEIR ROOTS IN THE TWELVE STEPS OF ALCOHOLICS ANONYMOUS MOST OF THE BOOK IS DEVOTED TO EXPLAINING A LARGE NUMBER OF TECHNICAL TRADING TOOLS SOME DEVELOPED BY DOCTOR ELDER THAT MAY BE USEFUL IN TRADING STOCKS OPTIONS AND FUTURES THE BOOK'S MOST ENTERTAINING ASPECT ARE QUESTIONS DESIGNED TO SEE HOW WELL YOU'VE ABSORBED YOUR LESSONS HERE'S ONE QUOTE IT WILL HELP YOU TO UNDERSTAND WHAT HAPPENS IN THE MARKET IF YOU THINK OF THE MARKETPLACE AS A A NUMBER OF RATIONAL INDIVIDUALS ACTING TO MAXIMIZE THEIR GAINS B. A CROWD WHOSE MEMBERS TRY TO PICK EACH OTHER'S POCKETS WHILE BEING SWAYED BY WAVES OF GREED AND FEAR C. A CONSTANT FLOW OF DATA A MIX OF USEFUL INFORMATION AND CHAOS D. A CARNIVAL PACKED WITH DRUNKS OFFERING MONEY TO STRANGERS WARNACO GROUP INCORPORATED SNARED ONE OF THE BEST KNOWN NAMES IN RETAILING AGREEING TO ACQUIRE THE PROFITABLE UNDERWEAR BUSINESS OF CALVIN KLEIN INCORPORATED AND THE RIGHTS TO PRODUCE OTHER MERCHANDISE UNDER THE DESIGNER'S NAME IT IS THE FIRST TIME THE DESIGNER HAS SOLD HIS TRADEMARK OUTRIGHT EVEN SO THE DEAL GIVES MR. KLEIN GLOBAL REACH THROUGH WARNACO THE FAST GROWING COMPANY THAT MAKES APPAREL UNDER SUCH BRAND NAMES AS HATHAWAY CHRISTIAN DIOR AND CHAPS BY RALPH LAUREN WARNACO SAID IT WILL PAY THE CLOSELY HELD COMPANY SIXTY FOUR MILLION DOLLARS FOR THE CALVIN KLEIN INCORPORATED WORLD WIDE TRADEMARKS AND BUSINESSES IN MEN'S UNDERWEAR AFTER THE INITIAL PAYMENT MR. KLEIN WILL RECEIVE AN QUOTE ON GOING FEE QUOTE STARTING IN THE THIRD YEAR BASED ON A PERCENTAGE OF TOTAL SALES THE TRANSACTION SEVERAL MONTHS IN THE MAKING WAS GUIDED PARTLY BY DAVID GEFFEN THE HOLLYWOOD RECORD AND MOVIE MOGUL WHO IS A LONG TIME FRIEND OF MR. KLEIN CALVIN KLEIN INCORPORATED EXECUTIVES SAID CASH FROM THE SALE WOULD ALLOW IT TO PAY OFF OUTSTANDING DEBT INCLUDING A FIFTY EIGHT MILLION DOLLAR LOAN THE COMPANY RECEIVED FROM CITIBANK N. A. LAST YEAR MR. KLEIN USED THE LOAN TO BUY BACK JUNK BOND DEBT FROM MR. GEFFEN WHO HAD PURCHASED IT TO HELP THE DESIGNER THROUGH FINANCIAL DIFFICULTIES WHILE RETAIL SALES OF CALVIN KLEIN MEN'S UNDERWEAR AT ABOUT ONE HUNDRED THIRTY MILLION DOLLARS ANNUALLY ARE A SLIVER OF THE ESTIMATED ONE POINT SIX BILLION DOLLARS IN MEN'S UNDERWEAR SALES IN THE U. S. THE BRAND MADE POPULAR BY SEXY ADS IS SAID TO HAVE UNUSUALLY STRONG PROFIT MARGINS LINDA J. WACHNER WARNACO'S CHAIRMAN AND CHIEF EXECUTIVE SAID THE DEAL CALLS FOR HER COMPANY TO LICENSE THE TRADEMARKS FOR CALVIN KLEIN'S MEN'S ACCESSORIES WORLD WIDE WARNACO WILL ALSO ACQUIRE WORLD WIDE TRADEMARKS FOR CALVIN KLEIN'S WOMEN'S UNDERWEAR AND INTIMATE APPAREL WHEN THE U. S. LICENSE EXPIRES AT THE END OF THIS YEAR THE WARNACO DEAL IS THE LATEST STEP IN THE GOAL OF MR. KLEIN AND PARTNER CHAIRMAN BARRY SCHWARTZ OF TURNING CALVIN KLEIN INCORPORATED FROM A MANUFACTURER INTO A PURE LICENSING BUSINESS WITH THE EXCEPTION OF MR. KLEIN'S HIGH FASHION COLLECTIONS WARNACO HAS ABILITY TO MARKET AND MANUFACTURE THE PRODUCT GLOBALLY AND THIS IS THE TIME FOR ME TO DO THAT SAID MR. KLEIN YESTERDAY IN AN INTERVIEW SOME ANALYSTS QUESTIONED WHETHER WARNACO PAID TOO MUCH BUT MS. WACHNER SAID THIS IS GOING TO BE MORE THAN ADDITIVE TO OUR EARNINGS IMPERIAL CHEMICAL INDUSTRIES P. L. C. SAID IT SOLD ITS INDIAN FERTILIZER UNIT FOR TWENTY FIVE MILLION POUNDS THIRTY SEVEN POINT THREE MILLION DOLLARS G. P. GOENKA GROUP OF COMPANIES AGREED TO BUY THE DIVISION WHICH IS A UNIT OF I. C. I. INDIA ADDITIONALLY I. C. I. INDIA WILL RECEIVE ABOUT TWENTY MILLION POUNDS IN OUTSTANDING SUBSIDY PAYMENTS FROM THE GOVERNMENT OF INDIA THE MONEY WILL BE PAID OVER THE NEXT NINE TO TWELVE MONTHS I. C. I. SAID THE SALE IS PART OF THE BRITISH CHEMICAL COMPANY'S STRATEGY TO RESTRUCTURE ITS REGIONAL OPERATIONS DEVELOPERS DIVERSIFIED REALTY CORPORATION CLEVELAND SAID ITS BOARD PLANS TO INCREASE THE NINETEEN NINETY FOUR ANNUAL DIVIDEND BY TWENTY PERCENT TO ONE DOLLAR AND NINETY TWO CENTS A SHARE OR FORTY EIGHT CENTS A SHARE QUARTERLY THE COMPANY'S MOST RECENT QUARTERLY DIVIDEND WAS FORTY CENTS A SHARE PAID ON MONDAY THE REAL ESTATE INVESTMENT TRUST SAID THE PLANNED INCREASE REFLECTS THE QUOTE DYNAMIC GROWTH QUOTE THAT IT HAS EXPERIENCED SINCE IT WENT PUBLIC LAST FEBRUARY BRISTOL MYERS SQUIBB COMPANY MARKETS THE HYPERTENSION DRUG CAPTOPRIL THE DRUG'S MARKETER WAS INCORRECTLY IDENTIFIED AS MERCK AND COMPANY IN A CHART ACCOMPANYING AN ARTICLE YESTERDAY ABOUT FOURTH QUARTER EARNINGS ESTIMATES FOR PHARMACEUTICAL COMPANIES A UNIVERSITY OF COLORADO HEART DOCTOR SAID PATIENTS WITH CONGESTIVE HEART FAILURE MAY NOT BE GETTING THE RIGHT MEDICINE FROM THEIR FAMILY DOCTORS MICHAEL R. BRISTOW A TOP RESEARCHER WHO HAS RUN SEVERAL DRUG COMPANY SPONSORED HUMAN TRIALS OF EXPERIMENTAL HEART MEDICINES SAID DRUG INDUSTRY MARKETING SURVEYS SHOW THAT JUST TWENTY PERCENT TO FIFTY PERCENT OF HEART FAILURE PATIENTS ARE PRESCRIBED DRUGS CALLED ACE INHIBITORS DESPITE SEVERAL MAJOR STUDIES THAT SHOW THE MEDICATIONS ARE THE MOST EFFECTIVE AVAILABLE TREATMENT FOR THE SYNDROME QUOTE THE NUMBER SHOULD BE NINETY PERCENT QUOTE DOCTOR BRISTOW MAINTAINED BUT THE MAJORITY OF HEART FAILURE PATIENTS ARE MANAGED BY FAMILY PRACTITIONERS AND INTERNISTS AND FOR WHATEVER REASON THE MESSAGE ISN'T GETTING OUT DOCTOR BRISTOW'S COMMENTS MADE AT A SCIENCE WRITERS MEETING HERE SPONSORED BY THE AMERICAN HEART ASSOCIATION REFLECT CONCERNS AMONG SPECIALTY PHYSICIANS AS BOTH PRIVATE SECTOR COST CONTAINMENT STRATEGIES AND THE DRIVE FOR NATIONAL HEALTH CARE REFORM CALL FOR MORE AND MORE CARE TO BE MANAGED BY GENERAL PRACTITIONERS MANY DOCTORS CONTINUE TO USE DIURETICS RATHER THAN ACE INHIBITORS AS FIRST LINE TREATMENT FOR ROUTINE CONGESTIVE HEART FAILURE DOCTORS SAY A VARIETY OF FACTORS RANGING FROM KNOWLEDGE OF THE ILLNESS FAMILIARITY WITH THE MEDICINES TO WORRIES OVER WHETHER PATIENTS CAN AFFORD THEM MAY INFLUENCE PRESCRIBING DECISIONS CONGESTIVE HEART FAILURES A CHRONIC WEAKENING OF THE HEART'S ABILITY TO PUMP BLOOD THROUGH THE BODY COST FORTY BILLION DOLLARS TO FIFTY BILLION DOLLARS A YEAR OR MORE THAN SIX PERCENT OF TOTAL U. S. HEALTH CARE EXPENDITURES DOCTOR BRISTOW SAID DOCTOR BRISTOW SAID A CONGESTIVE HEART FAILURE PATIENT SEEING A CARDIOLOGIST IS TWICE AS LIKELY TO GET ACE INHIBITORS AS THOSE SEEING FAMILY DOCTORS JAMES H. MOLLER PRESIDENT OF THE HEART ASSOCIATION SAID THE DISCREPANCIES REFLECT A NEED FOR MEDICAL SCHOOLS AND GROUPS SUCH AS HIS TO IMPROVE TRAINING AND EDUCATION OF MEDICAL STUDENTS AND PRACTICING GENERAL DOCTORS BUT WILLIAM COLEMAN PRESIDENT OF THE AMERICAN ACADEMY OF FAMILY PHYSICIANS AND A DOCTOR IN SCOTTSBORO ALABAMA SAID CONGESTIVE HEART FAILURE IS AMONG A BASIC SET OF MEDICAL PROBLEMS THAT ALL PRIMARY CARE DOCTORS ARE TRAINED TO TREAT WELL IT ISN'T NECESSARY TO ELEVATE THE ILLNESS TO ONE ONLY SUPER SPECIALISTS CAN TREAT HE ADDED FEDERAL MOGUL CORPORATION A SOUTHFIELD MICHIGAN SUPPLIER OF AUTO PARTS SAID IT PLANS TO OFFER FOUR MILLION SHARES OF ITS COMMON STOCK PROCEEDS FROM THE SALE WILL BE USED TO REPAY DEBT THE UNDERWRITERS MAY ISSUE AN ADDITIONAL SIX HUNDRED THOUSAND SHARES IF THEY EXERCISE THEIR OVER ALLOTMENT OPTION ABOUT THREE POINT FOUR MILLION SHARES WILL BE SOLD IN THE U. S. WITH THE REMAINDER TO BE SOLD OUTSIDE THE U. S. MANAGERS OF THE PROPOSED OFFERING IN THE U. S. ARE C. S. FIRST BOSTON AND DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION THIS ENVIRONMENTAL CLEANUP COMPANY NAMED DARRYL F. JONES FORTY YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER MR. JONES WHO IS CURRENTLY VICE PRESIDENT FINANCE CHIEF FINANCIAL OFFICER AND SECRETARY SUCCEEDS GORDON L. ELLIS FORTY SIX THE COMPANY SAID MR. ELLIS RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE BUT WILL REMAIN CHAIRMAN IT SAID MR. JONES WILL CONTINUE AS ITS CHIEF FINANCIAL OFFICER ON AN INTERIM BASIS BELL ATLANTIC'S SHARES HAVE PLUNGED TWENTY ONE PERCENT SINCE THE COMPANY ANNOUNCED PLANS TO ACQUIRE TELE COMMUNICATIONS IN A STOCK SWAP SO DOES THIS MEAN BELL ATLANTIC'S SHARES ARE FINALLY A BUY NOT SO FAST WALL STREET SAVANTS ARE CONVINCED THAT BELL ATLANTIC IS ABOUT TO RESTRUCTURE ITS AGREEMENT WITH T. C. I. TO MAKE IT MORE FAVORABLE TO SHAREHOLDERS OF T. C. I. SPECULATION IS ALL OVER THE MAP THERE MIGHT BE AN INCREASE IN THE NUMBER OF BELL ATLANTIC SHARES ISSUED TO T. C. I. HOLDERS AS PART OF THE DEAL SOME BELIEVE OTHERS HAVE BEEN WONDERING IF BELL ATLANTIC MIGHT EVEN CUT ITS DIVIDEND AS A WAY OF LEAVING MORE OF THE PIE FOR T. C. I. HOLDERS IN ANY CASE THE THEORY GOES A RESTRUCTURING WOULD CAUSE BELL ATLANTIC'S SHARES TO TAKE A FALL BUT WHILE WALL STREET WHISPERS BELL ATLANTIC'S CHIEF EXECUTIVE RAYMOND SMITH STRONGLY DENIES MOST OF THE RUMBLINGS THAT TRADERS ARE CHASING WHILE HE SAID IN AN INTERVIEW THAT HE IS QUOTE MYSTIFIED QUOTE AT THE DECLINE IN BELL ATLANTIC SHARES SINCE THE DEAL WAS ANNOUNCED HE REITERATED THAT THE COMPANY ISN'T CUTTING THE DIVIDEND AND HASN'T CONSIDERED IT THAT'S NOT GOING TO HAPPEN SAYS MR. SMITH WHO MADE RETAINING THE TWO DOLLAR AND EIGHTY SIX CENT A SHARE ANNUAL DIVIDEND FOR AT LEAST FIVE YEARS A CENTRAL PLEDGE WHEN HE ANNOUNCED THE T. C. I. DEAL I'LL DO ALL KINDS OF CRAZY THINGS BUT I'M NOT CUTTING THE DIVIDEND I'D CUT MY THROAT FIRST THE BELL ATLANTIC CHAIRMAN SAID HE ADDED THAT THE STOCK'S SLIDE HAS PROVIDED A BUYING OPPORTUNITY AND THAT HIS FAMILY IS TAKING ADVANTAGE OF IT BELL ATLANTIC CLOSED AT FIFTY FOUR AND FIVE EIGHTHS UP SEVEN EIGHTHS T. C. I.'S CLASS A SHARES WERE UNCHANGED AT TWENTY SIX AND SEVEN EIGHTHS HE FURTHER MAINTAINED THAT DESPITE THE DECLINE IN BELL ATLANTIC SHARES SINCE THE NEWS OF THE PLANNED T. C. I. ACQUISITION THERE AREN'T ANY PLANS TO RESTRUCTURE THE DEAL IN ANY WAY AND HE DIRECTLY RULED OUT THE POSSIBILITY THAT THE REGIONAL BELL COMPANY WOULD ISSUE AN EXTRA BATCH OF SHARES TO SWEETEN THE TERMS OF THE T. C. I. DEAL MR. SMITH SAID BELL ATLANTIC HAS NO PLANS TO RESTRUCTURE THE DEAL IN ANY MANNER STILL SAVVY INVESTORS ON WALL STREET THINK SOMETHING IS UP AND THEY ARE PLACING BIG BETS THAT ANY RESTRUCTURING OF THE DEAL WOULD BOOST T. C. I.'S STOCK PRICE QUOTE WE'RE BUYING T. C. I. BECAUSE WE THINK THE TERMS OF A NEW DEAL WILL BE FAVORABLE TO T. C. I. SHAREHOLDERS QUOTE SAYS JAMES ENGLE A PORTFOLIO MANAGER AT WOOD STRUTHERS AND WINTHROP A UNIT OF DONALDSON LUFKIN AND JENRETTE TALK ABOUT A RESTRUCTURING OF THE ACQUISITION AGREEMENT MAY BE ONLY WISHFUL THINKING ON THE PART OF T. C. I. HOLDERS INDEED THE VALUE OF THE SHARES IN THE COMBINED COMPANY THAT THEY WOULD RECEIVE UNDER THE ACCORD HAS SUNK ALONG WITH BELL ATLANTIC'S STOCK PRICE SINCE THE DEAL WAS ANNOUNCED BELL ATLANTIC'S SHARES TRADED AT SIXTY NINE AND ONE EIGHTH AROUND THE TIME OF THE MID OCTOBER ANNOUNCEMENT THEN ZIGZAGGED DOWNWARD HITTING A LOW OF FIFTY THREE AND ONE HALF IN RECENT WEEKS SOME INVESTORS ARE CONVINCED THAT T. C. I.'S CHIEF EXECUTIVE JOHN MALONE HAS BEEN PRESSURING MR. SMITH FOR A DIVIDEND CUT OF AT LEAST FIFTY PERCENT WHY WOULD A MAN WHO WOULD BE A BIG HOLDER OF BELL ATLANTIC WANT A LOWER DIVIDEND BECAUSE MR. MALONE AND T. C. I. SHAREHOLDERS WOULD RECEIVE A NEW CLASS OF STOCK IN THE ACQUISITION AND THAT NEW STOCK DOESN'T PAY A DIVIDEND FOR FIVE YEARS BECAUSE MR. MALONE WITH HIS PARTNER T. C. I. FOUNDER ROBERT MAGNESS HOLDS WHAT AMOUNTS TO VOTING CONTROL OF T. C. I. AND ITS LIBERTY MEDIA SPINOFF WHAT HE DEMANDS IN THIS NEGOTIATION WILL BE PARAMOUNT BUT BELL ATLANTIC'S MR. SMITH MAINTAINED YESTERDAY THAT WHILE HE IS IN TOUCH WITH MR. MALONE EVERY OTHER DAY ON THE MERGER THE NOTION OF RESTRUCTURING THE DEAL SIMPLY HASN'T COME UP A CUT IN THE DIVIDEND OF THE EXISTING BELL ATLANTIC SHARES WOULD MEAN THE NEW CLASS OF STOCK WOULD HAVE A HIGHER VALUE BELL ATLANTIC'S ANNUAL DIVIDEND RATE EQUALS FOUR POINT NINE PERCENT OF YESTERDAY'S STOCK PRICE AN ABOVE MARKET LEVEL THAT APPEALS TO MANY SMALL INVESTORS AT THE VERY LEAST INVESTORS BELIEVE BELL ATLANTIC WILL BE FORCED TO MAKE SOME IMPROVEMENT TO THE AGREEMENT BECAUSE THE VALUE OF THEIR CHUNK OF THE NEW COMPANY HAS FALLEN SO FAR IT WAS OBVIOUS TO ME THAT THEY WOULD RESTRUCTURE THE DEAL AFTER THE FIRST DEADLINE PASSED FOR A DEFINITIVE AGREEMENT ON DECEMBER FIFTEENTH ONE LARGE INVESTOR SAID YESTERDAY I DON'T THINK THEY WILL CUT THE DIVIDEND THOUGH MALONE WANTS THEM DO THAT T. C. I. DECLINED TO COMMENT THE RUMBLINGS AMONG INVESTORS ARE AN EXAMPLE OF THE INCREASING PRESSURE MR. SMITH WILL FACE AS HE TRIES TO KEEP TWO CAMPS HAPPY IN HIS NEW SHAREHOLDER BASE ON THE ONE HAND HE MUST CONSIDER HIS TRADITIONAL SHAREHOLDERS MADE UP OF A LARGE NUMBER OF SMALL INVESTORS WHO OWN THE STOCK CHIEFLY FOR ITS DIVIDEND YIELD WHEN THE PURCHASE GOES THROUGH HOWEVER HE ALSO WILL FACE THE TASK OF KEEPING T. C. I. SHAREHOLDERS SATISFIED AND THEY ARE LIKELY TO DEMAND GROWTH RATHER THAN PREDICTABLE DIVIDENDS FROM THE COMPANY INDEED BELL ATLANTIC'S STOCK HAS FALLEN SINCE THE DEAL WAS ANNOUNCED IN PART BECAUSE ITS TRADITIONAL INVESTORS HAVE RUSHED FOR THE EXITS PART OF THEIR CONCERN WAS THAT DESPITE ASSURANCES OTHERWISE BELL ATLANTIC'S DIVIDEND MIGHT BE CUT TALK OF A DIVIDEND CUT HEATED UP LATE LAST WEEK AFTER A COMPANY EXECUTIVE SPOKE TO ANALYSTS YESTERDAY MICHAEL ELLING AN ANALYST AT OPPENHEIMER AND COMPANY SAID IN COMMENTS TO THE FIRM'S CLIENTS THAT HE BELIEVES IT'S WORTH CONSIDERING SELLING BELL ATLANTIC BECAUSE OF THE POSSIBILITY OF A DIVIDEND CUT AND SWAPPING INTO LONG DISTANCE COMPANIES INSTEAD A GROWING NUMBER OF INSTITUTIONAL INVESTORS BELIEVE BELL ATLANTIC WILL CHOOSE A DIFFERENT ROUTE HOWEVER WOOD STRUTHERS' MR. ENGLE IS FATTENING THE PORTFOLIO'S T. C. I. HOLDINGS BASED ON HIS BET THAT BELL ATLANTIC WILL ADD TO THE NUMBER OF SHARES THAT GO TO T. C. I. HOLDERS AS PART OF THE ACCORD IF THE DEAL IS RESTRUCTURED AS HE EXPECTS HE PREDICTS T. C. I. STOCK WILL JUMP TO THIRTY FIVE DOLLARS OR EVEN HIGHER BELL ATLANTIC AND T. C. I. HAVE SET A JANUARY THIRTY FIRST DEADLINE FOR A FINAL AGREEMENT UNDER THE TERMS OF THE INITIAL AGREEMENT IN OCTOBER T. C. I. SHAREHOLDERS WERE TO RECEIVE ROUGHLY THIRTY NINE PERCENT OF THE NEW ENTITY OR ABOUT TWO HUNDRED SEVENTY NINE MILLION SHARES OF THE NEW COMPANY SAYS MR. ENGLE BECAUSE THE VALUE OF THEIR PROSPECTIVE INTEREST IN THE COMPANY HOWEVER HAS SUNK SOME INVESTORS BELIEVE BELL ATLANTIC WILL BE FORCED TO COME UP WITH A NEW FORMULA THAT WILL GIVE T. C. I. HOLDERS A LARGER STAKE IN THE COMBINED COMPANY CYGNUS THERAPEUTIC SYSTEMS SAID IT FILED SUIT IN FEDERAL COURT IN SAN FRANCISCO AGAINST ALZA CORPORATION ALLEGING ANTITRUST VIOLATIONS AND PATENT FRAUD THE ALLEGATIONS INVOLVE A SKIN PATCH THAT DELIVERS FENTANYL A PAIN KILLER BOTH COMPANIES HAVE DEVELOPED OR ARE DEVELOPING VERSIONS OF THIS PATCH CYGNUS ALLEGES THAT ALZA USED VARIOUS MISREPRESENTATIONS TO OBTAIN A PATENT FOR ITS PATCH IN NINETEEN EIGHTY SIX AND THEREBY STIFLED COMPETITION A SPOKESWOMAN FOR ALZA BASED IN PALO ALTO CALIFORNIA SAID THE COMPANY HAD NO KNOWLEDGE OF THE SUIT FIRST CITY BANCORP OF TEXAS INCORPORATED SAID THE FEDERAL DEPOSIT INSURANCE CORPORATION AGREED TO MAKE AN INITIAL DISTRIBUTION OF TWO HUNDRED MILLION DOLLARS IN CASH AND ASSETS TO THE COMPANY AS PART OF A SETTLEMENT OF LITIGATION OVER THE SEIZURE OF ITS BANKS FIRST CITY ESTIMATED THAT IT WILL RECEIVE FROM THE F. D. I. C. AN ADDITIONAL AMOUNT BRINGING THE TOTAL PAID TO BETWEEN TWO HUNDRED SEVENTY FIVE MILLION DOLLARS AND THREE HUNDRED SEVENTY FIVE MILLION DOLLARS AN ESTIMATE THE F. D. I. C. WOULDN'T CONFIRM THE FINAL AMOUNT WILL DEPEND ON HOW MUCH THE REMAINING FIRST CITY ASSETS SELL FOR AND THE F. D. I. C.'S EXPENSES IN SELLING THEM THE COMPANY SAID THE TWO HUNDRED MILLION DOLLAR INITIAL PAYMENT WILL BE ONE HUNDRED SEVEN MILLION DOLLARS IN CASH AND NINETY THREE MILLION DOLLARS IN PROPERTY AND NOTES RECEIVABLE AND WILL MORE THAN COVER THE EIGHTY MILLION DOLLARS TO ONE HUNDRED TWENTY MILLION DOLLARS IT NEEDS TO FULLY REPAY CREDITORS AND EMERGE FROM BANKRUPTCY LAW PROTECTION FIRST CITY SUED THE F. D. I. C. IN SEPTEMBER ALLEGING THAT FEDERAL REGULATORS UNJUSTLY SEIZED THE FIRM'S TWENTY BANKS IN NINETEEN NINETY TWO WHILE IT WAS TRYING TO RECAPITALIZE ITSELF WITH PRIVATE FUNDS BONDHOLDERS FORCED FIRST CITY INTO BANKRUPTCY LAW PROCEEDINGS A FEW DAYS AFTER THE SEIZURE AT THE TIME THE F. D. I. C. ESTIMATED FIRST CITY WOULD COST ITS INSURANCE FUND FIVE HUNDRED MILLION DOLLARS BUT AFTER SELLING THE BANKS AND SOME OTHER ASSETS THE F. D. I. C. ESTIMATED IT WOULD BE LEFT WITH A SIXTY MILLION DOLLAR SURPLUS TO BE RETURNED TO THE COMPANY FIRST CITY ON THE OTHER HAND SAID ITS ESTIMATES OF THE SURPLUS OWED WERE MUCH HIGHER BETWEEN FOUR HUNDRED FIFTY MILLION DOLLARS AND FIVE HUNDRED MILLION DOLLARS THE DISPARITY LARGELY REVOLVED AROUND PRICES THAT ASSETS IN RECEIVERSHIP WILL EVENTUALLY BRING TRADERS IN FIRST CITY'S THINLY TRADED STOCK AND DEBT SAID THE MARKET VALUED THE ANTICIPATED SETTLEMENT AT ABOUT THREE HUNDRED MILLION DOLLARS LAST MONTH FIRST CITY AND THE F. D. I. C. AGREED TO AN OUTLINE OF THE SETTLEMENT INCLUDING THE TWO STAGE DISTRIBUTION PLAN NO ESTIMATES OF THE SIZE OF DISTRIBUTIONS WERE MADE THEN EXCEPT THAT BOTH SIDES AGREED ALL DEPOSITORS AND CREDITORS WOULD BE REPAID IN FULL AND THAT THE BANK INSURANCE FUND WOULD SUFFER NO LOSS FIRST CITY SAID A TERM SHEET OF THE SETTLEMENT HAS BEEN APPROVED BY ITS BOARD AND THE F. D. I. C. BOARD A FINAL SETTLEMENT IS STILL SUBJECT TO DUE DILIGENCE NEGOTIATING AND SIGNING A DEFINITIVE AGREEMENT AS WELL AS BANKRUPTCY COURT APPROVAL ROBERT BROWN FIRST CITY PRESIDENT SAID A REJUVENATED FIRST CITY IS LIKELY TO BECOME A FINANCIAL SERVICES COMPANY AND IS CONSIDERING ALL OPTIONS FOR BUSINESS INCLUDING BANKING THE ENERGY DEPARTMENT SAID A COOPERATIVE RESEARCH PROGRAM WITH ENERGY CONVERSION DEVICES INCORPORATED AND CANON INCORPORATED PRODUCED A NEW SOLAR CELL THAT CAN HALVE THE COST OF SOLAR ENERGY FOR THE HOME THE NEW SOLAR OR QUOTE PHOTOVOLTAIC QUOTE CELL IS AN ULTRA THIN SHEET OF SILICON ALLOY THAT CONVERTS SUNLIGHT DIRECTLY INTO ELECTRICITY THE ENERGY DEPARTMENT SAID THAT IF THE NEW MATERIAL WERE INCORPORATED INTO ROOFING SHINGLES OF A SOUTH FACING HOME IT COULD SUPPLY THE HOME WITH ELECTRICITY DURING THE DAY WHEN THE SUN IS SHINING AT A COST OF SIXTEEN CENTS PER KILOWATT HOUR THE COST COULD EVENTUALLY DROP TO TWELVE CENTS IT SAID ELECTRICITY FROM CONVENTIONAL PHOTOVOLTAIC CELLS CURRENTLY COSTS TWENTY FIVE CENTS TO FIFTY CENTS PER KILOWATT HOUR IT SAID DURING A STANDARD ONE THOUSAND HOUR LONG TEST THE NEW PHOTOVOLTAIC CELL CONVERTED SUNLIGHT DIRECTLY INTO ELECTRICITY WITH AN EFFICIENCY OF TEN POINT TWO PERCENT ACCORDING TO UNITED SOLAR SYSTEMS CORPORATION THE JOINT VENTURE OF ENERGY CONVERSION DEVICES OF TROY MICHIGAN AND CANON THE BIG JAPANESE MAKER OF COPYING MACHINES THIS STABLE TEN POINT TWO PERCENT EFFICIENCY IS A RECORD FOR AN AMORPHOUS SILICON SOLAR CELL THE COMPANY SAID HIGHER CONVERSION EFFICIENCIES HAVE BEEN ACHIEVED BY SOLAR CELLS MADE WITH CRYSTALLINE SILICON OR OTHER CRYSTALLINE MATERIALS BUT THESE MATERIALS ARE MORE EXPENSIVE THAN THE AMORPHOUS MATERIAL UNLIKE CRYSTALLINE SOLAR CELL MATERIALS WHICH MUST BE PRODUCED IN BATCHES THE AMORPHOUS SILICON ALLOYS ORIGINALLY DEVELOPED BY ENERGY CONVERSION DEVICES CAN BE PRODUCED IN A CONTINUOUS SHEET UNITED SOLAR SYSTEMS IS BUILDING A THIRTY MILLION DOLLAR PLANT FINANCED LARGELY BY CANON IN NEWPORT NEWS VIRGINIA TO PRODUCE THE NEW AMORPHOUS SILICON ALLOY BEGINNING IN NINETEEN NINETY FIVE SHEETS OF THE ALLOY CAN BE FABRICATED INTO ROOF PANELS BATTERY CHARGING PANELS WALLCOATINGS FOR COMMERCIAL BUILDINGS OR ANY OF A HOST OF OTHER DEVICES THE NEW MATERIAL WHICH IS MUCH THINNER AND CONSEQUENTLY CHEAPER THAN PREVIOUS AMORPHOUS SILICON PHOTOVOLTAIC MATERIALS WAS DEVELOPED UNDER A THREE YEAR SIX POINT THREE MILLION DOLLAR COST SHARING PROGRAM BETWEEN UNITED SOLAR SYSTEMS AND THE ENERGY DEPARTMENT'S NATIONAL RENEWABLE ENERGY LABORATORY THE COMPANY CREDITED A TEAM LED BY SUBHENDU GHUA VICE PRESIDENT OF RESEARCH AND TECHNOLOGY WITH DEVELOPING THE NEW MATERIAL BUT IT ALSO REPRESENTS A TRIUMPH FOR STANFORD OVSHINSKY THE FOUNDER AND CHIEF EXECUTIVE OFFICER OF ENERGY CONVERSION DEVICES MR. OVSHINKSY PIONEERED THE DEVELOPMENT OF AMORPHOUS SILICON AS AN ELECTRONIC MATERIAL FOR SEVERAL YEARS HIS ASSERTIONS THAT HE COULD MAKE CHEAP PHOTOVOLTAIC CELLS IN VOLUME USING AMORPHOUS SILICON ALLOYS HAVE MET WITH CONSIDERABLE SKEPTICISM PRESIDENT CLINTON WAS PRONOUNCED TO BE IN EXCELLENT HEALTH AFTER A PHYSICAL EXAMINATION AT BETHESDA NAVAL HOSPITAL THE WHITE HOUSE SAID MR. CLINTON WHO IS SIX FEET TWO AND ONE HALF INCHES TALL WEIGHED IN AT TWO HUNDRED TEN POUNDS SIXTEEN POUNDS LIGHTER THAN AT HIS LAST PHYSICAL IN SEPTEMBER NINETEEN NINETY TWO HIS BLOOD PRESSURE WAS UP A BIT TO ONE HUNDRED THIRTY TWO SEVENTY FOURTHS FROM ONE HUNDRED EIGHTEEN SEVENTY THS BUT STILL WITHIN A HEALTHY RANGE THE PRESIDENT'S CHOLESTEROL LEVEL WAS TWO HUNDRED FOUR A LITTLE OVER THE TWO HUNDRED GUIDELINE AND UP FROM ONE HUNDRED EIGHTY FOUR AT THE NINETEEN NINETY TWO PHYSICAL ALL OTHER BLOOD TESTS WERE SAID TO BE NORMAL MR. CLINTON WAS ADVISED TO CONTINUE HIS ALLERGY DESENSITIZATION INJECTIONS AMONG THE TESTS CONDUCTED WERE CHEST X. RAY HEARING TEST EYE EXAMINATION ELECTROCARDIOGRAM TREADMILL TEST ALLERGY EXAMINATION DERMATOLOGY EXAMINATION AND BLOOD ANALYSIS NEW JERSEY CASINO OWNER DONALD TRUMP SAID HE HAS CHANGED HIS MIND ABOUT EXPANDING INTO LAS VEGAS BY ACQUIRING THE ALADDIN HOTEL AND CASINO MR. TRUMP WHO WAS SAID LESS THAN TWO WEEKS AGO TO BE NEAR AN AGREEMENT TO BUY THE CASINO FOR SIXTY MILLION DOLLARS SAID YESTERDAY HE WAS WILLING TO PAY ONLY FIFTY ONE MILLION DOLLARS FOR THE ALADDIN HIS DECISION TO WITHDRAW FROM NEGOTIATIONS FOR THE ALADDIN COMES AFTER A NUMBER OF OTHER BIDDERS EMERGED FOR THE ONE THOUSAND ROOM HOTEL AND CASINO LAST WEEK THE CASINO'S OWNER BELL ATLANTIC TRICON LEASING CORPORATION A UNIT OF BELL ATLANTIC CORPORATION SAID IT WILL HOLD A SEALED BID AUCTION ON THE PROPERTY ENSERCH CORPORATION DALLAS SAID IT WILL SELL ONE HUNDRED FIFTY MILLION DOLLARS OF PREVIOUSLY REGISTERED TEN YEAR NOTES THE NATURAL GAS COMPANY SAID IT WILL USE PART OF THE PROCEEDS TO PURCHASE ITS SERIES D. ADJUSTABLE RATE PREFERRED STOCK FOR FIFTY DOLLARS A SHARE A SPOKESWOMAN SAID THE COMPANY HAS ONE POINT FIVE MILLION SHARES OUTSTANDING ENSERCH SAID IT ALSO WILL USE PROCEEDS TO REDEEM THE FOLLOWING SINKING FUND DEBENTURES SEVEN POINT FIVE PERCENT DUE NINETEEN NINETY SIX SEVEN POINT SIX FIVE PERCENT DUE NINETEEN NINETY EIGHT EIGHT POINT NINE FIVE PERCENT DUE NINETEEN NINETY NINE EIGHT POINT SEVEN FIVE PERCENT DUE TWO THOUSAND ONE AND EIGHT POINT FIVE PERCENT DUE TWO THOUSAND TWO PENDING BOARD APPROVAL FEBRUARY EIGHTH THE COMPANY SAID REDEMPTIONS WILL BEGIN IN MARCH ARKLA INCORPORATED SAID IN HOUSTON THAT IT WILL RECORD A STILL TO BE DETERMINED FOURTH QUARTER CHARGE TO SCALE BACK ITS RELATIONSHIP WITH A TULSA OKLAHOMA INVESTMENT COMPANY BUT ARKLA SAID IT WOULD STILL RECORD A PROFIT FOR NINETEEN NINETY THREE FOR THE FIRST NINE MONTHS OF THE YEAR ARKLA EARNED FORTY POINT SEVEN MILLION DOLLARS OR TWENTY EIGHT CENTS A SHARE THE NATURAL GAS TRANSPORTATION DISTRIBUTION AND MARKETING COMPANY SAID IT HAS TERMINATED MOST OF ITS TIES WITH SUBSIDIARIES OF SAMSON INVESTMENT COMPANY TRANSACTIONS BETWEEN ARKLA AND SAMSON ORIGINATED IN NINETEEN NINETY ONE CHRYSLER CORPORATION SAID FOURTH QUARTER EARNINGS MORE THAN DOUBLED TO THEIR HIGHEST LEVEL EVER FOR THE PERIOD SURPASSING ANALYSTS' ESTIMATES AND SENDING THE AUTO MAKER'S STOCK TO AN ALL TIME HIGH CHRYSLER WHICH IS LEADING THE AUTO INDUSTRY RECOVERY BY SELLING MORE CARS AND TRUCKS AT HIGHER PRICES WHILE CUTTING COSTS HAD NET INCOME OF SEVEN HUNDRED SEVENTY SEVEN MILLION DOLLARS OR TWO DOLLARS AND ELEVEN CENTS A SHARE UP FROM THREE HUNDRED FIFTY SIX MILLION DOLLARS OR ONE DOLLAR AND TWELVE CENTS A SHARE A YEAR EARLIER THAT EXCEEDED THE ESTIMATES OF EVEN THE MOST OPTIMISTIC ANALYSTS WHO HAD EXPECTED CHRYSLER TO EARN SEVEN HUNDRED FIFTY MILLION DOLLARS REVENUE FOR THE QUARTER ROSE EIGHTEEN PERCENT TO TWELVE BILLION DOLLARS FROM TEN POINT TWO BILLION DOLLARS A YEAR EARLIER CHRYSLER SHARES JUMPED SEVENTY FIVE CENTS TO CLOSE AT SIXTY TWO DOLLARS AND FIFTY CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING AFTER RISING MONDAY ON EXPECTATIONS OF STRONG EARNINGS SHARES OF GENERAL MOTORS CORPORATION AND FORD MOTOR COMPANY ALSO ROSE DRIVEN BY INVESTOR EXPECTATIONS OF ADDITIONAL EARNINGS SURPRISES AS RISING DOMESTIC VEHICLE SALES AND HIGHER PRICES PROMISE SOLID PROFITS IN DETROIT G. M. CLOSED AT SIXTY TWO POINT ONE TWO FIVE DOLLARS UP THIRTY SEVEN POINT FIVE CENTS AND FORD CLOSED AT SIXTY EIGHT POINT SIX TWO FIVE UP TWENTY FIVE CENTS ALSO IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING WITH PRICE INCREASES AND AN ARRAY OF MORE ATTRACTIVE NEW PRODUCTS SUCH AS THE DODGE RAM PICKUP AND THE CHRYSLER CONCORDE SEDAN CHRYSLER BOOSTED THE AVERAGE REVENUE GENERATED FROM THE SALE OF A VEHICLE BY SIX POINT THREE PERCENT TO ABOUT SEVENTEEN THOUSAND DOLLARS IN THE FOURTH QUARTER FROM ABOUT SIXTEEN THOUSAND DOLLARS A YEAR AGO THE INCREASE INCLUDES A STEEP CUT IN REBATES OR SALES INCENTIVES WHICH AVERAGED SIX HUNDRED FIFTY DOLLARS DOWN FROM ONE THOUSAND TWENTY DOLLARS A YEAR EARLIER IN ITS AUTOMOTIVE OPERATIONS CHRYSLER'S PER VEHICLE PROFIT FOR THE QUARTER HIT ONE THOUSAND SEVEN HUNDRED TWENTY SEVEN DOLLARS BEFORE TAXES UP FROM ONE THOUSAND FIFTY NINE DOLLARS A YEAR EARLIER THAT MEANS THE ONE TIME SICK DOG OF THE AUTO INDUSTRY IS THE MOST PROFITABLE AUTO MAKER IN THE WORLD ON A PER VEHICLE BASIS SAID JOHN V. KIRNAN AN ANALYST WITH SALOMON BROTHERS QUOTE THESE GUYS ARE AHEAD OF THE REST OF THE INDUSTRY BY A COUNTRY MILE QUOTE MR. KIRNAN SAID TO BE SURE CHRYSLER IS BENEFITING FROM BOTH AN INDUSTRY REBOUND AND JAPANESE PRICE INCREASES WHICH HAVE ENABLED THE NUMBER THREE U. S. AUTO MAKER TO RAISE PRICES REPEATEDLY OVER THE PAST YEAR BUT CHRYSLER ALSO IS DOING A GOOD JOB OF CONTROLLING COSTS AND BUILDING PRODUCTS THAT PEOPLE ARE WILLING TO PAY FULL PRICE TO BUY IN A SIGN THAT THE COMPANY THINKS DEMAND FOR ITS PRODUCTS WILL STRENGTHEN FURTHER CHRYSLER'S BOARD AUTHORIZED SPENDING ONE BILLION DOLLARS TO INCREASE CAPACITY TO THREE POINT TWO MILLION UNITS A YEAR FROM THE CURRENT LEVEL OF ABOUT TWO POINT SIX MILLION THAT INCREASE ALONE COULD ENABLE CHRYSLER TO RAISE ITS FOURTEEN PERCENT SHARE OF THE U. S. VEHICLE MARKET BY FOUR PERCENTAGE POINTS FOR THE YEAR CHRYSLER POSTED A LOSS OF TWO POINT FIVE BILLION DOLLARS OR SEVEN DOLLARS AND SIXTY TWO CENTS A SHARE COMPARED WITH NINETEEN NINETY TWO EARNINGS OF SEVEN HUNDRED TWENTY THREE MILLION DOLLARS OR TWO DOLLARS AND TWENTY ONE CENTS A SHARE ITS PERFORMANCE WAS DRAGGED DOWN BY A FOUR POINT SEVEN BILLION DOLLAR ACCOUNTING CHARGE FOR RETIREE HEALTH CARE AND A TWO HUNDRED EIGHTY THREE MILLION DOLLAR CHARGE FOR OTHER RETIREMENT BENEFITS THE BIG NONCASH CHARGES MASKED WHAT OTHERWISE WAS CHRYSLER'S BEST YEAR EVER ON A PRETAX OPERATING BASIS CHRYSLER EARNED THREE POINT EIGHT BILLION DOLLARS FOR THE YEAR UP SHARPLY FROM NINETEEN NINETY TWO PRETAX EARNINGS OF NINE HUNDRED THIRTY FOUR MILLION DOLLARS AND FROM ITS PREVIOUS RECORD OF TWO POINT FOUR BILLION DOLLARS IN NINETEEN EIGHTY FOUR REVENUE FOR THE YEAR ROSE EIGHTEEN PERCENT TO FORTY THREE POINT SIX BILLION DOLLARS FROM THIRTY SIX POINT NINE BILLION DOLLARS IN NINETEEN NINETY TWO GARY VALADE CHRYSLER'S CHIEF FINANCIAL OFFICER SAID THE COMPANY WAS ABLE TO REDUCE THE VOLUME AT WHICH IT COULD BREAK EVEN IN NORTH AMERICA TO ONE POINT SIX MILLION VEHICLES A YEAR FROM ONE POINT SEVEN MILLION VEHICLES IN NINETEEN NINETY TWO BY CUTTING COSTS THIS ISN'T A HIGH MARGIN INDUSTRY SO JUST INCREDIBLE THINGS HAPPEN TO THE BOTTOM LINE IF YOU CAN RAISE PRICES AT THE SAME TIME COSTS FALL SAYS RONALD GLANTZ AN ANALYST WITH DEAN WITTER IT WAS AN EXCEPTIONAL YEAR SAID ROBERT J. EATON CHRYSLER'S CHAIRMAN WHO NONETHELESS SOUNDED HIS USUAL CAUTIONARY NOTE AND SOUGHT TO EMPHASIZE CHRYSLER'S COMMITMENT TO CONTINUOUS IMPROVEMENT CHRYSLER FINISHED THE YEAR WITH FOUR BILLION DOLLARS OF CASH ON HAND UP SHARPLY FROM TWO POINT THREE BILLION DOLLARS LAST YEAR THE IMPROVEMENT IN ITS CASH POSITION CAME EVEN AS CHRYSLER CONTRIBUTED THREE POINT FIVE BILLION DOLLARS TO REDUCE ITS UNFUNDED PENSION LIABILITY WHICH STOOD AT TWO POINT TWO BILLION DOLLARS AT YEAR END THE LIABILITY WAS THREE POINT NINE BILLION DOLLARS AT THE BEGINNING OF NINETEEN NINETY THREE A GENEROUS UNION CONTRACT AND LOWER INTEREST RATES OFFSET MUCH OF CHRYSLER'S CONTRIBUTIONS DURING THE YEAR ANALYSTS SAY CHRYSLER COULD FULLY FUND ITS PENSION PLAN IN ABOUT ONE AND ONE HALF YEARS AHEAD OF THE TWO YEARS CHRYSLER HAS SAID IT COULD TAKE DESPITE THE TREMENDOUS INCREASE IN CHRYSLER'S PROFITABILITY MANY ANALYSTS EXPECT THE COMPANY TO CONTINUE TO DO BETTER AS IT UPDATES ITS LINEUP AND INCREASES CAPACITY THE COMPANY'S BALANCE SHEET ALSO IMPROVED WHEN IT REDEEMED SEVEN HUNDRED SIXTY NINE MILLION DOLLARS IN DEBT IN NOVEMBER DEBT OUTSTANDING WAS TWO POINT EIGHT BILLION DOLLARS AT THE END OF THE YEAR DOWN FROM THREE POINT EIGHT BILLION DOLLARS A YEAR EARLIER BECAUSE OF ITS SOLID OPERATING PERFORMANCE IN NINETEEN NINETY THREE CHRYSLER WILL MAKE PROFIT SHARING PAYMENTS TO EACH OF ITS UNITED AUTO WORKERS EMPLOYEES THIS YEAR AND PAY BONUSES TO EXECUTIVES IN CALCULATING THE PAYMENTS THE COMPANY WON'T INCLUDE THE ACCOUNTING LOSS MCDONALD'S CORPORATION SAID IT PLANS TO REPURCHASE AS MUCH AS ONE BILLION DOLLARS OF ITS COMMON STOCK WITHIN THE NEXT THREE YEARS IF EXERCISED IN FULL THE BUYBACK PLAN WOULD REPRESENT AT CURRENT PRICES ABOUT SEVENTEEN POINT FOUR MILLION SHARES OR AN INDICATED FOUR POINT NINE PERCENT OF THE COMPANY'S THREE HUNDRED FIFTY THREE MILLION SHARES OUTSTANDING AT SEPTEMBER THIRTIETH THE FAST FOOD CONCERN SAID IT WILL FUND THE REPURCHASES PRIMARILY THROUGH EXCESS CASH FLOW QUOTE WHILE MAINTAINING A STRONG EQUITY BASE TO SUPPORT THE FUTURE GROWTH OF OUR WORLD WIDE BUSINESS QUOTE THE COMPANY NOTED THAT OVER THE PAST TEN YEARS IT HAS SPENT TWO POINT TWO BILLION DOLLARS TO BUY BACK COMMON STOCK MCDONALD'S ALSO NOTED THAT IT RECENTLY ANNOUNCED PLANS TO ACCELERATE ITS EXPANSION AND WILL ADD BETWEEN NINE HUNDRED AND ONE THOUSAND TWO HUNDRED RESTAURANTS ANNUALLY IN NINETEEN NINETY FOUR AND IN FOLLOWING YEARS WITH ABOUT TWO THIRDS OUTSIDE OF THE U. S. IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY MCDONALD'S SHARES ROSE SIXTY TWO POINT FIVE CENTS TO FIFTY SEVEN DOLLARS AND FIFTY CENTS CONDE NAST PUBLICATIONS INCORPORATED SAID IT HAS ACQUIRED A MINORITY INTEREST IN WIRED A YEAR OLD SAN FRANCISCO BASED MAGAZINE THAT COVERS THE MULTIMEDIA MARKET TERMS WEREN'T DISCLOSED BUT THE MAGAZINE WILL CONTINUE TO BE CONTROLLED FINANCIALLY AND EDITORIALLY BY ITS CO FOUNDERS JANE METCALFE AND LOUIS ROSSETTO LAUNCHED LAST JANUARY ON A SHOESTRING WIRED HAS BUILT ITS SUBSCRIBER BASE TO THIRTY THOUSAND AND NOW SELLS SIXTY ADVERTISING PAGES PER ISSUE THE MAGAZINE HAS TRIED TO DO FOR QUOTE CYBERSPACE QUOTE WHAT ROLLING STONE DID FOR ROCK MUSIC ILLUSTRATING THE CULTURE SURROUNDING EMERGING MULTIMEDIA TECHNOLOGIES WITHOUT TECHIE JARGON WE LIKE TO THINK WE'RE BECOMING THE VOICE OF THE DIGITAL REVOLUTION SAYS MR. ROSSETTO WHO IS EDITOR AND PUBLISHER HE SAID THE INVESTMENT HAS ALREADY ALLOWED WIRED TO HIRE ITS FIRST CIRCULATION DIRECTOR AND THE MAGAZINE PLANS A MAJOR DIRECTMAIL CAMPAIGN TO BOOST CIRCULATION CONDE NAST IS THE MAGAZINE PUBLISHING ARM OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INCORPORATED A SPOKESWOMAN SAID IT WAS THE FIRST TIME CONDE NAST HAS ACQUIRED A MINORITY STAKE IN ANOTHER MAGAZINE IN THIS COUNTRY IT PREFERS TO BUY THEM OUTRIGHT OR START ITS OWN ATTORNEY GENERAL JANET RENO IS EXPECTED TO ANNOUNCE SOON THE NAME OF THE SPECIAL COUNSEL WHO WILL EXAMINE MATTERS SURROUNDING PRESIDENT CLINTON'S INVESTMENT IN WHITEWATER DEVELOPMENT CORPORATION A JUSTICE DEPARTMENT OFFICIAL SAID THE ANNOUNCEMENT MAY COME AS EARLY AS TODAY QUOTE BUT THAT WOULD BE QUITE A PUSH QUOTE MS. RENO WAS TRAVELING BETWEEN FRIDAY AND LAST NIGHT AND PLANNED TO REVIEW NAMES UPON HER RETURN WHILE SHE WAS AWAY A SMALL GROUP OF DEPARTMENT EMPLOYEES INCLUDING DEPUTY ATTORNEY GENERAL PHILIP HEYMANN AND CRIMINAL DIVISION CHIEF JO ANN HARRIS HAVE BEEN CONTACTING LAWYERS TO SEE WHETHER THEY WOULD BE AVAILABLE FOR THE POST AMONG THOSE UNDER CONSIDERATION ARE DAN WEBB A FORMER U. S. ATTORNEY WHO WAS A DEPUTY INDEPENDENT COUNSEL DURING THE IRAN CONTRA PROBE AND FORMER U. S. ATTORNEY ROBERT FISK THE SMALL BUSINESS ADMINISTRATION ESTIMATES THAT FEDERAL DISASTER LOANS TO VICTIMS OF THIS WEEK'S LOS ANGELES EARTHQUAKE WILL TOTAL NEARLY SIX HUNDRED MILLION DOLLARS OR ABOUT THE SAME AS THE FIVE HUNDRED EIGHTY ONE MILLION DOLLARS MADE AFTER THE NINETEEN EIGHTY NINE SAN FRANCISCO QUAKE IN THAT DISASTER THE S. B. A. MADE FIFTEEN THOUSAND LOANS RECIPIENTS IN LOS ANGELES WILL BENEFIT HOWEVER FROM A TRIPLING OF THE MAXIMUM AMOUNT ALLOWED FOR S. B. A. LOANS APPROVED BY CONGRESS LAST SUMMER AFTER FLOODING IN THE MIDWEST HOMEOWNERS AND SMALL BUSINESSES CAN BORROW UNDER THE PROGRAM THE MAXIMUM S. B. A. DISASTER LOAN FOR PHYSICAL DAMAGE WAS RAISED TO ONE POINT FIVE MILLION DOLLARS FROM FIVE HUNDRED THOUSAND DOLLARS THE LOANS HAVE A BELOW MARKET FOUR PERCENT ANNUAL INTEREST RATE LOANS FOR PHYSICAL DAMAGE ABOVE TEN THOUSAND DOLLARS REQUIRE SOME FORM OF COLLATERAL USUALLY A LIEN ON THE BORROWER'S HOME OR BUSINESS REAL ESTATE THE S. B. A. BEGAN SENDING DISASTER RELIEF PERSONNEL TO THE LOS ANGELES METROPOLITAN AREA AFTER THE EARTHQUAKE MONDAY THE AGENCY SAYS IT EXPECTS TO HAVE SEVERAL HUNDRED RELIEF WORKERS IN PLACE TODAY WORKING WITH ENTREPRENEURS AND HOMEOWNERS THE S. B. A. ALREADY HAD A DISASTER AID OFFICE OPEN IN ARCADIA NORTH OF LOS ANGELES THAT WAS HELPING PEOPLE HIT BY A STRING OF MISFORTUNES THE AREA SAW FLOODS AND A MAJOR RIOT IN NINETEEN NINETY TWO AND LAST YEAR THERE WERE WILDFIRES AND A SMALL EARTHQUAKE IN THE MOUNTAINS EAST OF THE CITY STRUCTURAL DAMAGE WILL BE THE BIGGEST PROBLEM FOR MOST SMALL COMPANIES AS A RESULT OF THE QUAKE SAID BERNARD KULIK THE S. B. A.'S ASSISTANT ADMINISTRATOR FOR DISASTER RELIEF QUOTE THERE'S A LOT OF DAMAGE PEOPLE DON'T SEE RIGHT AWAY THEY BEGIN TO NOTICE THE CRACKS IN THE WALLS AND THERE'S ALWAYS A LOT OF CHIMNEY DAMAGE AFTERSHOCKS ARE ALSO A BIG PROBLEM THEY CAN CAUSE A LOT OF NEW DAMAGE AND SOMETIMES THEY'RE THE STRAW THAT BREAKS THE CAMEL'S BACK FOR DAMAGE THAT WAS ALREADY THERE MR. KULIK SAID MR. KULIK SAID HE SAW A TYPICAL EXAMPLE OF A SMALL BUSINESS PROBLEM ON TELEVISION A SMALL GROCERY STORE SELLING BOTTLED WATER AND BATTERIES FROM ITS FRONT DOOR BECAUSE MUCH OF THE BUILDING'S CEILING HAD COLLAPSED INSIDE BUSINESS OWNERS ALSO FACE THE DANGER AND EXPENSE CAUSED BY BROKEN GAS AND WATER LINES BUSINESSES CAN REQUEST S. B. A. DISASTER AID IMMEDIATELY BY CALLING A TOLL FREE LINE ONE EIGHT HUNDRED FOUR HUNDRED SIXTY TWO TO NINE THOUSAND TWENTY NINE RUN BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY THEY ALSO CAN APPLY AT THE S. B. A.'S ARCADIA OFFICE OR WAIT FOR THE OPENING OF THE F. E. M. A. DISASTER ASSISTANCE CENTERS IN THE COMING DAYS FEW BUSINESSES HAVE EARTHQUAKE INSURANCE BECAUSE IT IS COSTLY THE S. B. A.'S MR. KULIK SAID THE S. B. A. PROVIDES LOANS FOR FINANCIAL AS WELL AS PHYSICAL LOSSES THAT RESULT FROM DISASTERS FOR INSTANCE BUSINESSES THAT CAN BE REACHED ONLY BY A LOS ANGELES FREEWAY WOULD SUFFER ECONOMICALLY EVEN IF THEY HAD NO PHYSICAL DAMAGE SOME OWNERS WHOSE BUSINESSES WERE DAMAGED IN THE NINETEEN NINETY TWO LOS ANGELES RIOT COMPLAINED ABOUT FEDERAL DISASTER AID BECAUSE THEY WANTED GRANTS OR SOME FORM OF REPARATION INSTEAD OF LOANS F. E. M. A. WHICH COORDINATES IMMEDIATE DISASTER RELIEF IS THE ONLY SOURCE OF DIRECT GRANTS HOWEVER THE S. B. A.'S DISASTER RELIEF EFFORTS WAS PRAISED BY THE HOUSE SMALL BUSINESS COMMITTEE LAST YEAR AS ONE OF THE MAIN FEDERAL AGENCIES RESPONSIBLE FOR DISASTER AID THE S. B. A. HAS BEEN STRETCHED BY A STRING OF UPHEAVALS STARTING WITH HURRICANE HUGO IN NINETEEN EIGHTY NINE TO THE LOS ANGELES RIOTS AND HURRICANE ANDREW IN NINETEEN NINETY TWO TO LAST YEAR'S FLOODS AS A RESULT THE TOTAL AMOUNT OF S. B. A. DISASTER LOANS REACHED A RECORD ONE POINT SIX EIGHT BILLION DOLLARS IN FISCAL NINETEEN NINETY THREE EXCEEDING THE PREVIOUS ONE POINT SIX FOUR BILLION DOLLARS HIGH SET IN NINETEEN SEVENTY TWO AFTER HURRICANE AGNES AS A TRADER AMONG THE SCREAMING THRONG AT THE MOST CROWDED FUTURES EXCHANGE IN THE WORLD JIM HEINZ WAS OFTEN SQUEEZED OUT OF PLACE BY BURLY COLLEAGUES AND HURLED BODILY INTO THE TRADING PIT BELOW TODAY MR. HEINZ AND THE OTHER TWO THOUSAND ONE HUNDRED VOTING MEMBERS OF THE BOARD OF TRADE HAVE A CHANCE TO EASE THE CHRONIC CROWDING AT THEIR EXCHANGE TRADERS WILL VOTE ON A PROPOSAL TO DIG DEEP INTO EXCHANGE COFFERS TO BUY AND RAZE AN ADJOINING BUILDING IN DOWNTOWN CHICAGO AND TO CONSTRUCT A HUGE NEW TRADING FLOOR ON THE SITE DESPITE THE OBVIOUS NEED FOR MORE BREATHING ROOM THE PROPOSAL ISN'T GETTING THE WARMEST OF WELCOMES LESLIE ROSENTHAL A FORMER EXCHANGE CHAIRMAN IS WAGING AN AGGRESSIVE CAMPAIGN TO DEFEAT THE PROPOSAL QUOTE IT'S TOO BIG AND TOO EXPENSIVE QUOTE MR. ROSENTHAL SAYS THE LEADERSHIP OF THE C. B. O. T. PRINCIPALLY PATRICK H. ARBOR CHAIRMAN OF THE C. B. O. T. AND CHAMPION OF THE MOVE IS TRYING TO SELL THE MEMBERSHIP ON A PLAN THAT WOULD BUILD A TRADING FLOOR THE SIZE OF A SUPERTANKER THE PROBLEM IS THAT ONCE WE START WE CAN'T TURN IT AROUND AND ONCE FINISHED WE WILL BE SAILING IT HALF EMPTY NONSENSE SAYS MR. ARBOR AT THE C. B. O. T. WE'RE CHOKED AND THROTTLED FOR SPACE HE SAYS WE DON'T HAVE BOOTH SPACE FOR THE BIG BROKERAGE FIRMS THAT BRING ORDERS TO THE FLOOR OUR SIGHT LINES ARE INADEQUATE TO BRING ORDERS TO THE PITS IN AN EFFICIENT MANNER AND THE SPACE PROBLEM ISN'T CONFINED TO THE BOARD OF TRADE IN NEW YORK FOUR FUTURES EXCHANGES SHARE THE SAME CRAMPED TRADING FLOOR HAZARDS ABOUND THERE SUCH AS THE ROLLS OF CARPET RIPPED UP BY SLASHING FEET AND PHONE CORDS THAT STRETCH ACROSS AISLES ALONG WHICH PASS HUNDREDS OF TRADERS BASICALLY THE U. S. FUTURES INDUSTRY IS THE VICTIM OF ITS OWN RAPID GROWTH WITH A BOOMING BUSINESS THAT IN MANY CASES HAS OVERTAKEN THE EXCHANGES' PHYSICAL CAPABILITY TO MANAGE IT THREE OF THE FOUR NEW YORK MARKETS ALSO PLAN TO BUILD A NEW TRADING FLOOR AND HAVE SELECTED A SITE IN MANHATTAN THE NEW YORK MERCANTILE EXCHANGE THE BIGGEST OF THE FOUR NEW YORK MARKETS MAY MOVE WITH THEM OR MAY GO ITS OWN WAY QUOTE WE'RE SEARCHING DESPERATELY FOR NEW SPACE QUOTE SAYS ALLEN MARX A NYMEX TRADER AND MEMBER OF AN EXCHANGE COMMITTEE CONTEMPLATING POSSIBLE RELOCATION VENUES IN CHICAGO THE PRICE OF EXPANSION IS STEEP THE TOTAL COST OF MR. ARBOR'S BUILDING PROPOSAL WHICH INCLUDES A SIXTY THOUSAND SQUARE FOOT ELEVATED TRADING FLOOR THAT WOULD SPAN A CHICAGO STREET IS ESTIMATED AT ONE HUNDRED SEVENTY ONE POINT FIVE MILLION DOLLARS WHAT MEMBERS WILL VOTE ON TODAY HOWEVER IS MERELY THE TWENTY SIX MILLION DOLLAR COST OF ACQUIRING THE BUILDING IN NINETEEN NINETY TWO TRADERS DEFEATED A PROPOSAL TO ACQUIRE THE SAME BUILDING FOR TWENTY FOUR MILLION DOLLARS AND DEVELOP IT FOR A RELATIVELY MODEST ONE HUNDRED MILLION DOLLARS SO WHY DOES MR. ARBOR THINK HE HAS A BETTER CHANCE THIS TIME THERE'S NO INCREASE IN TRADING FEES BUILT INTO THIS PROPOSAL HE SAYS LAST TIME THERE WAS MR. ARBOR'S PLAN CALLS FOR THE COST OF THE PROJECT TO BE PAID OUT OF GENERAL EXCHANGE REVENUES OVER THE NEXT TEN YEARS THE BOARD OF TRADE HAD RECORD TRADING VOLUME OF ONE HUNDRED SEVENTY EIGHT MILLION FUTURES AND OPTIONS CONTRACTS IN NINETEEN NINETY THREE PRODUCING TOTAL EXCHANGE REVENUE OF NINETY EIGHT MILLION DOLLARS IF GROWTH CONTINUES AT A THREE PERCENT TO FIVE PERCENT CLIP MR. ARBOR SAYS THE EXCHANGE WILL BE ABLE TO PAY FOR THE NEW FACILITY WITHOUT RAISING FEES MR. ROSENTHAL ASSERTS THAT MR. ARBOR'S REVENUE PROJECTIONS FOR THE COMING DECADE ARE OVERLY OPTIMISTIC HE NOTES THAT A SIMILAR EXPANSION IN THE EARLY NINETEEN EIGHTIES CONSTRUCTION OF A BUILDING THAT IS NOW CALLED THE BOARD OF TRADE ANNEX WAS BUDGETED AT THIRTY MILLION DOLLARS BUT ENDED UP COSTING ABOUT ONE HUNDRED TWENTY MILLION DOLLARS NOR DOES MR. ROSENTHAL WHO RUNS HIS OWN FUTURES BROKERAGE FIRM QUANTUM FINANCIAL SERVICES BELIEVE C. B. O. T. TRADING VOLUME WILL GROW AT THE PACE MR. ARBOR PREDICTS YET MR. ARBOR'S PLAN HAS GOTTEN A BOOST LATELY FROM THE ENDORSEMENTS OF MANY PROMINENT C. B. O. T. TRADERS AMONG THEM ARE L. THOMAS BALDWIN ONE OF THE BIGGEST AND MOST INFLUENTIAL TREASURY BOND FUTURES TRADERS AT THE EXCHANGE CONRAD LESLIE A C. B. O. T. VETERAN AND THOMAS CUNNINGHAM CHAIRMAN OF THE EXCHANGE COMMITTEE THAT REPRESENTS SO CALLED LOCAL TRADERS WHO TRADE FOR THEIR OWN PROFIT I THINK IT'S GOING TO PASS SAYS MR. HEINZ ALTHOUGH HE PROFESSES HIMSELF UNDECIDED ABOUT WHICH WAY TO VOTE AND SAYS MANY OF HIS COLLEAGUES ARE SIMILARLY TORN IT'S VERY EXPENSIVE HE SAYS IT'S A SIZABLE COMMITMENT TO THE OPEN OUTCRY SYSTEM OF FLOOR TRADING ELECTRONIC SCREEN BASED TRADING IS GAINING A FOOTHOLD AT OTHER FUTURES EXCHANGES AND MAY BE THE WAVE OF THE FUTURE IF IT IS WE MIGHT BE BUILDING A HUGE WHITE ELEPHANT QUOTE TO EASE CHRONIC CROWDING ON ITS TRADING FLOOR THE CHICAGO BOARD OF TRADE HAS PROPOSED ACQUIRING AN ADJOINING BUILDING AND CONSTRUCTING A HIGH TECH TRADING FLOOR ON THE SITE THE NEW FACILITY WOULD BE CONNECTED TO THE FAMOUS ART DECO BOARD OF TRADE BUILDING BY AN OVERHEAD SPAN HERE ARE SOME DETAILS OF THE PROPOSAL EDITH E. HOLIDAY FORTY ONE YEARS OLD AN ATTORNEY AND FORMER ASSISTANT TO PRESIDENT BUSH AND SECRETARY OF HIS CABINET WAS NAMED A NEW DIRECTOR OF THIS FOOD COMPANY INCREASING THE BOARD SIZE TO EIGHTEEN MEMBERS FROM SEVENTEEN IN NINETEEN TWENTY SIX TWO FAMOUS MEN SAT DOWN TO DISCUSS THE MEANING OF LIFE OVER AN INCONGRUOUS DINNER ON A SUMMER NIGHT IN NEW YORK THEY HAD NEVER MET BEFORE AND NEVER WOULD AGAIN WITHIN A WEEK RUDOLPH VALENTINO WAS DEAD AT AGE THIRTY ONE LEAVING THOUSANDS OF WOMEN TO SOB AT HIS COFFIN AND H. L. MENCKEN TO REFLECT UPON THEIR STRANGE ENCOUNTER AND THE NATURE OF FAME IN A STORY HE FILED AWAY UNDER QUOTE ODD FISH QUOTE IT'S A LOT LIVELIER PERCEPTIVE AND SHORTER THAN THE REVERENTIAL NEW OPERA THE DREAM OF VALENTINO BY THE COMPOSER DOMINICK ARGENTO AND THE LIBRETTIST CHARLES NOLTE THAT JUST PREMIERED AT THE WASHINGTON OPERA AT THE KENNEDY CENTER VALENTINO WAS A SENSITIVE SEARCHING ARTIST DESTROYED BY AVARICIOUS HOLLYWOOD MOGULS IS THE UNSURPRISING MESSAGE OF THIS HIGH MINDED TRIBUTE TO THE SCREEN'S FIRST MALE MEGASTAR WHO WAS NEVERTHELESS PAID A FORTUNE FOR HIS SUFFERING ONE LONGED FOR MENCKEN'S SHARP TONE AS THIS UNDRAMATIC ODE TO SELF PITY PUTTERED ALONG WITH TOO MANY WOMEN AND NO SAGE OF BALTIMORE TO GIVE VOICE TO THE SILENT SHEIK IS A CHALLENGE ONE WOULD HAVE THOUGHT MR. ARGENTO EASILY CAPABLE OF MEETING HE'S THE ENGAGINGLY TRADITIONAL TUNESMITH WHO PROBED THE FRACTURED MIND OF VIRGINIA WOOLF IN AN EVOCATIVE SONG CYCLE AND WHO LATER WITH MR. NOLTE DREAMED UP THE POETICALLY SURREAL VOYAGE OF EDGAR ALLEN POE WHICH THE LYRIC OPERA OF CHICAGO STAGED SO HANDSOMELY IN THE PHANTASMAGORICAL SETTINGS OF JOHN CONKLIN BUT THIS TIME WITH MR. CONKLIN ONCE AGAIN DESIGNING THE RESULT IS AS LEADEN AS POE WAS LIGHT SO MUCH ATTENTION IS SPENT DOTING ON THE BIOGRAPHICAL FACTS THAT THE ELEMENT OF FANTASY THAT LIES AT THE HEART OF ALL OPERA IS GIVEN LITTLE SPACE TO BLOOM VALENTINO STARTS PROMISINGLY ENOUGH IN A SPOOKY ART DECO FUNERAL PARLOR WHERE THE CORPSE LIES COVERED WITH ROSES AND EERILY LIT VALENTINO WE CRY TO THAT LIGHT IN THE SKY SINGS A PLAINTIVE PERIOD VOICE ON AN OLD VICTROLA THE CATCHY TUNE PIERCING A CLASSICAL REQUIEM BUT THEN THE PIECE GOES NOWHERE EXCEPT BACK IN TIME NOT THE FRESHEST CONCEPT THE SEPULCHRAL MOOD ONLY BRIEFLY LIFTS FROM THE UNIT SET TO SHOW THE SAINTED ONE FILMING QUOTE THE SHEIK QUOTE VALENTINO FIRST STEPS TO THE STAGE AS A BALLROOM DANCER A LEWD FEMALE HAS MADE ADVANCES AND HE REJECTS THEM FIRMLY I HAVE PRIDE I HAVE DIGNITY HE ANNOUNCES IN A CREDO THAT IS NOT MEMORABLY MELODIC LITTLE OF THE MUSIC IS NEVER MIND MR. ARGENTO'S PERIODIC SKILL IN EVOKING THE SOUND OF THE TWENTIES THE TIN PAN ALLEY PIANO OR THE MUSIC HALL TANGO IN THE RESULTING COMMOTION A MOTHERLY SCREENWRITER JUNE MATHIS EXTRICATES HIM FROM THE COPS AND FEEDS HIM HE REWARDS HER NOT WITH THE LOVE SHE YEARNS FOR BUT WITH A CUMBERSOME ARIA ABOUT DESTINY HIS BEFORE FALLING ASLEEP SHE SINGS OF HIS OLIVE SKIN A REFERENCE SO OBSESSIVE AS THE OPERA CONTINUED THAT I LOOKED TO SEE IF KISS MY FACE WAS THE SPONSOR NO THE A. T. AND T. FOUNDATION THE LILA WALLACE READERS DIGEST FUND AND THE N. E. A. GOT THIS SHOW ON THE ROAD JUNE TAKES HIM TO HOLLYWOOD WHERE SHE WRITES THE SHEIK AND MAKES HIM FAMOUS ONLY TO SEE HIM FALL IN THE CLUTCHES OF THE CRASS MOGUL WHO IS MALICIOUSLY TRYING TO FORCE STARDOM ON THE IMPOVERISHED IMMIGRANT AND SOME NUTTY LESBIANS WHO WANT TO MARRY HIM IN ACT ONE VALENTINO TIES THE KNOT WITH STARLET JEAN ACKER WHO THEN LOCKS HIM OUT OF THE BRIDAL SUITE SCREAMING IT WAS ALL A MISTAKE IN THE SECOND AND LAST ACT HE TAKES OFF FOR MEXICO WITH THE DESIGNER NATACHA RAMBOVA WHO DUMPS HIM QUICKLY ORCHESTRATING THIS SAPPHIC SERAGLIO IS ALLA NAZIMOVA AN AGING ACTRESS AND VIOLINIST AND FILM HISTORY FOOTNOTE SHE ONCE MADE AN ALL GAY SALOME FLICK IN TRIBUTE TO OSCAR WILDE NAZIMOVA WANTS TO PLAY CAMILLE AS HE AUDITIONS IN HER LIVING ROOM PLANTING ARDENT KISSES ON ACKER NAZIMOVA SAWS AWAY SOULFULLY ON HER FIDDLE IS THIS ABSURD OR WHAT BUT ASTONISHINGLY THE SCENE IS NOT PLAYED FOR LAUGHS SO ENAMORED ARE MESSRS ARGENTO AND NOLTE OF THEIR SUBJECT THEY DON'T SEE THE HUMOR OF HIS LIFE HOW MANY LESBIANS WERE THERE ANYWAY IN HOLLYWOOD IN RUDY'S DAY FIVE THREE ONE HUNDRED THOUSAND WHO KNOWS BUT HOW THE HECK DID THE WORLD'S MOST FAMOUS LATIN LOVER END UP MARRYING TWO OF THEM RAMBOVA DID LATER INSIST SHE WAS JUST A STRAIGHT SPIRITUALIST DID HE NOT KNOW MENCKEN THOUGHT HIM A BIT NAIVE DID HE THINK LOVE WOULD FIND A WAY WAS HE HIMSELF EITHER IMPOTENT RUMORED OR HOMOSEXUALLY INCLINED ALSO RUMORED AND THUS HAPPY TO ESCAPE INTO WHAT WAS CALLED A WHITE MARRIAGE WHAT BROUGHT THE DISTRAUGHT STAR TO MENCKEN'S TABLE ASKING FOR ADVICE WAS A CHICAGO TRIBUNE EDITORIAL WHICH FACETIOUSLY SUGGESTED HE SHOULD HAVE BEEN DROWNED FOR THE GOOD OF AMERICA AND ITS MASCULINE MEN THE WRITER HAD COME UPON A PINK POWDER DISPENSER IN A MEN'S ROOM AND BLAMED ITS PRESENCE ON THE SHEIK VALENTINO CHALLENGED HIM TO A DUEL HIS MASCULINE HONOR HAD BEEN OUTRAGED WROTE MENCKEN UNLUCKILY FOR HIM ALL THIS TOOK PLACE IN THE UNITED STATES WHERE THE WORD HONOR SAVE WHEN IT IS APPLIED TO THE STRUCTURAL INTEGRITY OF WOMEN HAS ONLY COMIC SIGNIFICANCE MENCKEN DETECTED IN HIS CLOTHES AND SIMPLE ELOQUENCE A GENTLEMAN RECOILING FROM A LIFE HE FOUND INCREASINGLY VULGAR AND POSSIBLY FUTILE HE DID NOT THINK HE SAW AN ARTIST AND CONCLUDED THAT THE EXPLODING ULCER SAVED THE STAR FROM A BITTER END BUT QUOTE VALENTINO'S QUOTE MAKERS THINK OTHERWISE AND SO HE SINGS TWICE OF HOW HE PROMISED HIS MOTHER TO BE A SERIOUS STAGE ACTOR THAT IS THE DREAM OF THE OPERA'S TITLE MORE INTERESTING DREAMS HAVE BEEN DREAMED AND COMPOSED MR. ARGENTO MAKES HIS VALENTINO A DRAMATIC TENOR RATHER OVERBURDENING ROBERT BRUBAKER WHOSE HEROIC STRUGGLES FINALLY BROUGHT HIM CLOSER TO THE VOICELESS SHEIK THAN WAS INTENDED IN ANY OTHER ROLE WE MIGHT HAVE ENJOYED HIS THIN BY OPERA STANDARDS APPEARANCE BUT AS VALENTINO THE TENOR LACKED THE EXOTIC CHARM THAT MADE THE ACTOR CATNIP FOR THE GIRLS THOSE GIRLS THEY WERE EITHER HARD ON THE EARS OR HARD TO KEEP APART ESPECIALLY EDRIE MEANS AND JULIA ANNE WOLFE IN THE PALLID ROLES OF JEAN ACKER AND NATACHA RAMBOVA NAZIMOVA'S FLAMBOYANT WARDROBE DESIGNED BY COUTURIER VALENTINO NO RELATION MADE IT HARD TO IGNORE JOYCE CASTLE'S SHRIEKS MAYBE SHE HAD TACKS IN HER NICE PUMPS TWO FINE SINGERS SUZANNE MURPHY AS THE SCREENWRITER AND JULIAN PATRICK AS THE MOGUL MANAGED TO INJECT SOME PATHOS INTO THEIR PLATITUDES CHRISTOPHER KEENE APPEARED TO PRESIDE ATTENTIVELY OVER THE WELL ORCHESTRATED SCORE SWEDISH DIRECTOR ANN MARGRET PETTERSSON LIVENED UP THE CROWDS AND CARDBOARD CHARACTERS AS MUCH AS POSSIBLE MAYBE BEFORE THE DREAM OF VALENTINO GOES TO THE CO PRODUCING DALLAS OPERA IN NINETEEN NINETY FIVE IT CAN BE RETOOLED INTO A COMEDY WILLIAM H. GRAY THE THIRD PRESIDENT AND CHIEF EXECUTIVE OF THE UNITED NEGRO COLLEGE FUND AND A FORMER U. S. REPRESENTATIVE D. PENNSYLVANIA WAS ELECTED A DIRECTOR OF THIS COMPUTER SOFTWARE MAKER EXPANDING ITS BOARD MEMBERSHIP TO EIGHT THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS EIGHT PERCENT HIGH THREE AND ONE SIXTEENTH PERCENT LOW EIGHT PERCENT NEAR CLOSING BID TEN PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH SEVEN PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH NINE PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT ONE TWO PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE FOUR PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT ONE FIVE PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO THREE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FIFTY NINE DAYS THREE POINT THREE TWO PERCENT TWO HUNDRED SIXTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE THREE PERCENT THIRTY DAYS THREE POINT ONE FIVE PERCENT SIXTY DAYS THREE POINT ONE NINE PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE FIVE PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT FIVE NINE PERCENT THREE MONTHS TWO POINT SEVEN TWO PERCENT SIX MONTHS TWO POINT NINE FIVE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH EIGHT PERCENT ONE MONTH THREE POINT ONE FIVE PERCENT THREE MONTHS THREE POINT THREE OH PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH TWO PERCENT THIRTY DAYS THREE POINT OH THREE PERCENT SIXTY DAYS THREE POINT OH SIX PERCENT NINETY DAYS THREE POINT OH NINE PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE FOUR PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE EIGHT PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FOUR MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT FIVE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT THREE AND FIVE SIXTEENTHS PERCENT SIX MONTHS FOREIGN PRIME RATES CANADA FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT NINE PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY JANUARY EIGHTEENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS TWO POINT NINE NINE PERCENT THIRTEEN WEEKS THREE POINT ONE FIVE PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT NINE FOUR PERCENT SIXTY DAYS SEVEN POINT OH ONE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT NINE OH PERCENT SIXTY DAYS SEVEN PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT OH FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN FOUR PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM THE NATION'S LARGEST PENSION PLAN FOR STATE EMPLOYEES IS GEARING UP FOR PROXY FIGHTS WITH THREE BIG COMPANIES THIS SPRING IN A REPORT TO BE RELEASED TODAY CALPERS SAID IT FILED SHAREHOLDER PROPOSALS TO APPEAR ON PROXY STATEMENTS AT ANNUAL MEETINGS AT BOISE CASCADE CORPORATION U. S. SHOE CORPORATION AND ZENITH ELECTRONICS CORPORATION THE PROPOSALS AIM TO GIVE OUTSIDE DIRECTORS MORE CLOUT MAKE MANAGEMENT MORE RESPONSIVE TO SHAREHOLDERS AND IMPROVE THE COMPANIES' OPERATING RESULTS MEANWHILE THE FUND SAYS IT IS POSTPONING DECISIONS ABOUT SIMILAR PROPOSALS AT C. P. I. CORPORATION A PHOTOGRAPHIC HOLDING COMPANY AND FIRST MISSISSIPPI CORPORATION A CHEMICAL CONCERN AT PAPER COMPANY BOISE CASCADE SPOKESMAN ROBERT HAYES SAYS THAT CALPERS'S COMPLAINTS ABOUT THE COMPANY'S FINANCIAL PERFORMANCE ARE QUOTE WAY OFF THE MARK QUOTE A SPOKESMAN FOR U. S. SHOE WHICH HAS INTERESTS IN SPECIALTY RETAILING SAID TALKS WOULD CONTINUE WITH CALPERS BEFORE THE COMPANY'S ANNUAL MEETING IN MAY WHILE A ZENITH SPOKESMAN SAID COMPANY OFFICIALS ARE STILL IN DISCUSSIONS WITH CALPERS AND BELIEVE THE FUND WILL WITHDRAW ITS PROPOSAL BEFORE THE COMPANY'S APRIL ANNUAL MEETING ELI LILLY AND COMPANY SAID IT WILL TAKE A ONE POINT TWO BILLION DOLLAR PRETAX FOURTH QUARTER CHARGE MOSTLY TO STREAMLINE FOREIGN OPERATIONS AND FUND PREVIOUSLY ANNOUNCED EARLY RETIREMENTS OF SOME TWO THOUSAND SIX HUNDRED WORKERS THE INDIANAPOLIS PHARMACEUTICAL CONCERN ALSO SAID IT WOULD AS REPORTED SELL OR SPIN OFF ITS ENTIRE ONE POINT TWO BILLION DOLLAR A YEAR MEDICAL DEVICE BUSINESS THE MOVE EXPECTED TO TAKE PLACE THIS YEAR WOULD SIGNIFICANTLY REVAMP LILLY AND COULD ALTER COMPETITION IN THE MEDICAL DEVICE FIELD THE CHARGE OF WHICH ABOUT FIVE HUNDRED FORTY MILLION DOLLARS WILL GO TOWARD LILLY'S PREVIOUSLY ANNOUNCED EARLY RETIREMENT PLAN WILL PRODUCE A FOURTH QUARTER LOSS ASIDE FROM RESTRUCTURING CHARGES HOWEVER LILLY SAID PER SHARE EARNINGS FOR ALL OF NINETEEN NINETY THREE WOULD FALL WITHIN ANALYSTS' EXPECTATIONS FOUR DOLLARS AND THIRTY CENTS A SHARE TO FOUR DOLLARS AND EIGHTY CENTS A SHARE LILLY SHARES YESTERDAY TRADED ABOVE THEIR FIFTY TWO WEEK HIGH OF SIXTY ONE DOLLARS AND CLOSED AT SIXTY ONE DOLLARS AND FIFTY CENTS UP ONE POINT SIX TWO FIVE DOLLARS IN TRADING ON THE NEW YORK STOCK EXCHANGE LILLY'S SECOND MAJOR RESTRUCTURING CHARGE IN TWO YEARS LIKELY WILL INCLUDE OFFICE AND PLANT CLOSINGS IN EUROPE AND PUERTO RICO COMPANY OFFICIALS SAID THE MOVE ALSO WILL PAY TO END CONTRACTS UNDER WHICH OUTSIDE DISTRIBUTORS SELL LILLY MEDICAL DEVICES IN EUROPE THAT EQUIPMENT WILL BE SOLD BY COMPANY EMPLOYEES IN THE FUTURE SAID JAMES M. CORNELIUS CHIEF FINANCIAL OFFICER IN NINETEEN NINETY TWO'S THIRD QUARTER LILLY TOOK A TWO HUNDRED FORTY FIVE MILLION DOLLAR PRETAX CHARGE TO WRITE DOWN ASSETS YESTERDAY LILLY CHAIRMAN AND CHIEF EXECUTIVE RANDALL L. TOBIAS PLEDGED HE WOULD TRY TO TRANSFER WORKERS TO OTHER JOBS INSTEAD OF FIRING THEM HE SAID IN AN INTERVIEW THAT HE QUOTE CANNOT GUARANTEE QUOTE THERE WILL BE NO LAYOFFS BUT INSISTED THAT QUOTE EVERY POSSIBLE CONSIDERATION QUOTE WOULD BE GIVEN TO AVOIDING THEM THE ASSURANCE IS EXPECTED TO BOLSTER WORKER MORALE AND LOYALTY AT THE TRADITION BOUND COMPANY AS PART OF ITS MOVE TO LEAVE THE MEDICAL DEVICE BUSINESS LILLY SAID IT INTENDS TO SELL ITS PHYSIO CONTROL CORPORATION UNIT IN REDMOND WASHINGTON ALONG WITH HYBRITECH INCORPORATED AND PACIFIC BIOTECH INCORPORATED IN SAN DIEGO HYBRITECH SALES REACHED ONE HUNDRED FORTY THREE MILLION DOLLARS IN NINETEEN NINETY TWO BUT FELL ABOUT TWENTY PERCENT LAST YEAR IN THE FACE OF COMPETITION FROM ABBOTT LABORATORIES WHICH MAKES A COMPETING PROSTATE CANCER BLOOD TEST PHYSIO CONTROL ONCE HAD ONE HUNDRED FIFTY MILLION DOLLARS IN ANNUAL SALES BUT NOW IS MIRED IN REGULATORY DIFFICULTIES WITH THE FOOD AND DRUG ADMINISTRATION PACIFIC BIOTECH WHICH MAKES DIAGNOSTIC TESTS INCLUDING ONE FOR PREGNANCY HAS AN ESTIMATED TWENTY MILLION DOLLARS IN ANNUAL SALES LILLY'S SIX OTHER MEDICAL DEVICE COMPANIES LED IN SALES BY CARDIAC PACEMAKERS INCORPORATED WILL BE GROUPED TOGETHER INTO A SEPARATE HOLDING COMPANY AND COULD BE SOLD OFF AS A WHOLE OR IN PIECES LILLY SAID BUT LILLY ADDED THAT IT IS CONSIDERING OTHER OPTIONS FOR THE HOLDING COMPANY INCLUDING SPINNING IT OFF TO CURRENT LILLY HOLDERS OR LILLY EXECUTIVES TOLD WALL STREET ANALYSTS YESTERDAY THE COMPANY MAY MAKE AN INITIAL PUBLIC OFFERING OF STOCK IN SOME OF THE NEW CONCERN AS EARLY AS THIS YEAR'S THIRD QUARTER OTHER PARTS OF THE HOLDING COMPANY COULD THEN BE SOLD TO OTHER MEDICAL CARE COMPANIES MR. TOBIAS THE CHAIRMAN SAID ONE FUNCTION OF SUCH AN I. P. O. WOULD BE TO PLACE A VALUE ON THESE SHARES IN THE MARKETPLACE BEFORE NEGOTIATING FURTHER SALES OF THE DEVICE COMPANIES WE FEEL THE TRUE VALUE OF THESE COMPANIES HAS BEEN MASKED BECAUSE PEOPLE SEE US AS A PHARMACEUTICAL COMPANY HE SAID REGARDLESS OF WHICH OPTION THE COMPANY PICKS IT SAID IT EXPECTS A DIVESTITURE OF THE NEW COMPANY IN THE NEXT YEAR ALBERT J. TORTORELLA FIFTY ONE YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT RESPONSIBLE FOR COMMUNICATIONS PROGRAMS AT THIS MAKER OF SMOKELESS TOBACCO PRODUCTS THE POSITION IS NEW MR. TORTORELLA WAS FORMERLY VICE CHAIRMAN OF BURSON MARSTELLER A NEW YORK PUBLIC RELATIONS FIRM SOMETIMES WE GET SO CAUGHT UP WITH THE EXCITEMENT OF BEING PART OF THE GREAT INFORMATION SUPERHIGHWAY ABOUT BUYING A C. D. ROM ABOUT TELLING OUR V. C. R.S TO TAPE A PUBLIC TELEVISION PROGRAM ON ONE CHANNEL WHILE WE WATCH THE MENENDEZ BROTHERS ON COURT T. V. THAT WE DON'T RECOGNIZE THE IMPORTANT MOMENTS IN OUR LIVES THEY'RE NOT ALWAYS SUBTLE BUT FOR ONE REASON OR ANOTHER EVEN IN THIS AGE OF TOTAL RECALL WE MISS THEM BUT MORE AND MORE YOUNG PEOPLE LIKE ME ARE EXPERIENCING WHAT COULD ONLY BE CALLED A FRANK SINATRA MOMENT I WAS STROLLING DOWN THIRTY FOURTH STREET WHICH WAS CROWDED WITH HOLIDAY SHOPPERS I WALKED PAST MACY'S AND WITHOUT THINKING WANDERED INTO A FESTIVELY DECORATED MUSIC STORE IT HAD LUTHER VANDROSS BONO GLORIA ESTEFAN ALL SINGING WITH FRANK SINATRA ON HIS NEW ALBUM QUOTE DUETS QUOTE CAPITOL TWELVE DOLLARS AND NINETY NINE CENTS CURRENTLY NUMBER SIXTEEN ON BILLBOARD'S TOP TWO HUNDRED ALBUMS CHART INEXPLICABLY I BOUGHT IT I WAS SITTING IN A SUBWAY CAR AND HEADING HOME BEFORE I REALIZED WHAT I HAD DONE IT WAS AN EPIPHANY MUCH LIKE THE MOMENT I FOUND MYSELF SUGGESTING TO A FRIEND THAT SHE BUY A COMPUTER BEFORE THE END OF THE YEAR FOR TAX REASONS YOU MUST UNDERSTAND MY CONFUSION FOR ME FRANK SINATRA REPRESENTED EVERYTHING THAT HAPPENED THIS CENTURY BEFORE I WAS BORN EVERYTHING I NEVER EXPERIENCED AND WOULD NEVER UNDERSTAND LIKE EISENHOWER OR GIRDLES OR THE EXCITEMENT OVER COLOR TELEVISION DIDN'T WE ALWAYS HAVE COLOR TELEVISION FOR THE LONGEST TIME I THOUGHT FRANK SINATRA WAS BLACK AND WHITE NO COLORS NO YOUTH THE KIND OF THING ONLY OLD MEN AT THE LOCAL VETERANS OF FOREIGN WARS CHAPTER AND THEIR BLUE HAIRED WIVES WOULD BUY TICKETS TO SEE WEEKS IN ADVANCE THEY'D STEER THEIR SHIP SIZED GAS GUZZLING AUTOMOBILES TO THE SHOW FROM THE CONGESTED SUBURBAN MALL PARKING LOTS WITH NEW YORK NEW YORK BLASTING AT EARPIERCING VOLUMES THEY'D BE WEARING OLD SHINY SUITS AND THEIR BEST TIES THEY'D BE REMINISCING ABOUT BOB HOPE'S PERFORMANCES FOR THE TROOPS SOMEWHERE IN THE SOUTH PACIFIC AND THEY COULD REMEMBER THE DAY J. F. K. WAS KILLED FORGET THAT THEY COULD REMEMBER WHAT THEY WERE DOING THE DAY PEARL HARBOR WAS BOMBED THERE ARE DOZENS OF TIME LIFE BOOKS DEDICATED TO SUMMARIZING THE IMPORTANT HISTORICAL EVENTS IN THE LIVES OF FRANK SINATRA FANS FRANK SINATRA FANS BELONG TO THE ROTARY CLUB AND WEAR TIE CLIPS AT SOME POINT IN THEIR LIVES POLYESTER SUITS WERE ACCEPTABLE BUT FEMALE MANAGERS WERE NOT FOR THEM CIGARETTES MAY HAVE SMELLED BAD BUT THEY DIDN'T KILL YOU AND NEITHER DID NUCLEAR ENERGY ELECTRIC POWER LINES OR FRENCH FRIES THEY DIDN'T GROW UP KNOWING ABOUT COUCH POTATOES OR FOR THAT MATTER SPANDEX SCANDAL FOR THEM WAS A MINISKIRT NOT MADONNA ACTING OUT SEXUAL FANTASIES IN FRONT OF MILLIONS OF STRANGERS I DON'T DRESS LIKE THEM I DON'T ACT LIKE THEM I DON'T DRINK WHAT THEY DRINK FRANK SINATRA FANS AND I HAVE NOTHING IN COMMON MUSIC IS THAT WAY IT IDENTIFIES GENERATIONS YOU ARE WHAT YOU LISTEN TO THAT'S WHY I'M SO TERRIFIED TO BE THE OWNER OF A FRANK SINATRA C. D. IT'S LIKE LEARNING HOW TO MIX A MARTINI OR PUTT IT'S LIKE GOING TO THE DEALERSHIP AND RECOGNIZING THE PRACTICALITY OF AN OLDSMOBILE OR EVEN WORSE A STATION WAGON IT'S LIKE WEARING TIES EVERY DAY AND BUYING AN APPOINTMENT BOOK IT'S LIKE TRADING IN YOUR BACKPACK FOR A BRIEFCASE IT'S LIKE HAVING JUST ONE DRINK WHEN SOMEONE INVITES YOU TO HAVE A DRINK IT'S LIKE GOING TO WORK EVERY DAY AND ONE DAY FINDING YOURSELF SAYING YOU HAVE TO LEARN HOW TO NETWORK IT'S LIKE FINALLY PAYING OFF ALL OF YOUR STUDENT LOAN IT'S LIKE LEARNING WHAT I. R. A. MEANS WHY POINTS ARE NOT JUST BAD MARKS ON A LICENSE BUT COSTLY FOR A MORTGAGE AS WELL AND WORRYING ABOUT YOUR CREDIT RECORD IT'S DISCOVERING HOW YOU CAN PUT A YEAR'S WORTH OF RELAXATION INTO A TWO WEEK VACATION IT'S GOING TO BED AT THE SAME TIME AND GETTING UP AT THE SAME TIME EVERY DAY OLD BLUE EYES SCARES THE BEJEEZUS OUT OF ME BUT HERE I AM LISTENING TO FRANK SINATRA U. TWO'S BONO SINGS I'VE GOT YOU UNDER MY SKIN WITH THE CHAIRMAN OF THE BOARD IT'S LIKE WATCHING MICK JAGGER DANCING A POLKA WITH A MARTINI IN HIS HAND I CAN'T HELP IT I HAVEN'T EVEN HIT THIRTY YET AND I AM GETTING OLD I AM TERRIFIED THAT I AM REACHING THE POINT WHERE I MIGHT WITHOUT THINKING MENTION BOB DYLAN AND SINATRA IN THE SAME SENTENCE BUT IT ISN'T ALL BAD ESPECIALLY IF YOU COMPARE IT TO MY FIRST SIP OF SCOTCH A TASTE FOR SCOTCH IS ACQUIRED MY DAD ONCE SAID I THINK THE SAME GOES FOR SINATRA SO I'M NOT BREAKING OUT SCOTCH AND THE SINATRA C. D. EVERY TIME FRIENDS STOP BY I'M NOT READY FOR THAT BUT I DO SAMPLE THE C. D. ONCE IN A WHILE I DON'T KNOW HOW TO DANCE TO IT BUT IT'S GOOD BACKGROUND MUSIC WHEN I'M READING THE SUNDAY PAPER WHAT'S MORE IN UNDER MY SKIN SINATRA ACTUALLY SOUNDS BETTER THAN BONO WHO IS ONE OF MY FAVORITE HIPSTERS BUT SOUNDS LIKE HE IS MOANING FOR MOST OF THE SONG BESIDES I UNDERSTAND NONE OF THE ARTISTS ACTUALLY SANG WITH SINATRA IN THE STUDIO THEY SANG OVER SPECIAL PHONE LINES I CAN RELATE TO THAT DUETS ON AN ANSWERING MACHINE COOL MR. VOGEL WRITES THE JOURNAL'S CREDIT MARKETS COLUMN THE PROVERB SAYS QUOTE A GOOD NAME IS RATHER TO BE CHOSEN THAN GREAT RICHES QUOTE THIS BELIEF IS EMBEDDED IN ENGLISH AND AMERICAN NOTIONS OF FAIRNESS DEFAMATION DUE PROCESS AND PRESUMPTION OF INNOCENCE IT IS THE PREMISE FOR OUR JUSTICE SYSTEM'S HALLMARK THAT NO INDIVIDUAL CAN BE PRONOUNCED GUILTY OF A CRIME BY HIS GOVERNMENT UNLESS HE IS INDICTED TRIED AND CONVICTED SADLY THIS PRINCIPLE WAS UTTERLY ABANDONED IN YESTERDAY'S RELEASE OF LAWRENCE WALSH'S FINAL REPORT ON IRAN CONTRA FOR SEVEN YEARS MR. WALSH HAS BEEN INVESTIGATING THE NINETEEN EIGHTY FIVE STRATEGIC INITIATIVE INVOLVING ARMS TRANSFERS TO IRAN AND THE UNAUTHORIZED DIVERSION OF FUNDS FROM THIS INITIATIVE TO SUPPORT NICARAGUAN FREEDOM FIGHTERS YESTERDAY HIS REPORT ACCUSES FALSELY UNFAIRLY AND WITHOUT PROOF RONALD REAGAN GEORGE BUSH FORMER ATTORNEY GENERAL ED MEESE AND OTHER FORMER CABINET OFFICIALS OF A CONVOLUTED CONSPIRACY EVEN THE FEDERAL APPEALS COURT ORDERING RELEASE OF THE REPORT SOUGHT TO DISTANCE ITSELF FROM A MASSIVE DOCUMENT DISCLOSING SECRET GRAND JURY MATERIAL AND RIFE WITH ACCUSATIONS OF GUILT OF CRIMINAL CONDUCT AGAINST PERSONS NEVER INDICTED OR CONVICTED THE COURT AGREED THAT MR. MEESE'S AND OTHERS' DUE PROCESS ARGUMENTS WERE POWERFUL AND OF CONSIDERABLE MERIT AND THAT RELEASE OF THIS DEFAMATORY REPORT WOULD COMPROMISE THE RIGHTS OF THESE PUBLIC SERVANTS HOW THEN COULD MR. WALSH'S MUSINGS BE GIVEN JUDICIAL SANCTION THE SPECIAL PANEL IN A LENGTHY OPINION CONFESSED THAT THIS INDEPENDENT COUNSEL WAS AN OFFICER PERFORMING AN EXECUTIVE FUNCTION ALMOST ENTIRELY WITHOUT OVERSIGHT FROM THE EXECUTIVE BRANCH OF GOVERNMENT MOREOVER AS A RESULT OF THE SUPREME COURT'S NINETEEN EIGHTY EIGHT DECISION IN MORRISON V. OLSON UPHOLDING THE CONSTITUTIONALITY OF THE INDEPENDENT COUNSEL MR. WALSH COULD NOT BE SUPERVISED BY CONGRESS OR THE JUDICIARY IN OTHER WORDS THIS PROSECUTOR ANSWERS TO NO ONE THE COURT MEEKLY CONCLUDED THAT UNFORTUNATELY FOR THE TRADITION OF FAIRNESS MR. WALSH'S FALSE AND UNSUBSTANTIATED CRIMINAL ALLEGATIONS WILL BE AIRED ALL THE COURT COULD DO WAS PROMISE TO REMOVE ITS IMPRIMATUR FROM HIS CHARGES SO AS TO ALLEVIATE ANY MISCONCEPTION THAT THESE UNLITIGATED ACCUSATIONS OBTAINED JUDICIAL APPROVAL BUT FAIRNESS AND THE DUE PROCESS CLAUSE OF THE CONSTITUTION ENTITLE AMERICAN CITIZENS EVEN THOSE POOR SOULS CAUGHT UP IN THE POLITICAL MACHINATIONS OF WASHINGTON TO MORE WE HAVE CLEAR AND LONGSTANDING RULES ENSURING THE SECRECY OF GRAND JURY PROCEEDINGS AND CRIMINAL INVESTIGATIONS WE HAVE PRECEDENTS THAT PROHIBIT QUOTE HIT AND RUN QUOTE CRIMINAL REPORTS THAT FAIL TO INDICT AND OFFER NO AUTHORITATIVE FORUM FOR THE VINDICATION OF THE ACCUSED THE SUPREME COURT HELD IN NINETEEN SEVENTY ONE THAT WHERE A PERSON'S GOOD NAME REPUTATION HONOR OR INTEGRITY IS AT STAKE BECAUSE OF WHAT THE GOVERNMENT IS DOING TO HIM NOTICE AND AN OPPORTUNITY TO BE HEARD ARE ESSENTIAL EARLIER THE COURT INSISTED THAT THIS OPPORTUNITY BE MORE THAN A MERE GESTURE YET THE TARGETS OF MR. WALSH'S INVESTIGATION WERE NEVER GIVEN A PROPER OPPORTUNITY TO DEFEND THEIR REPUTATIONS IN THESE STAR CHAMBER PROCEEDINGS AS ONE OF A TEAM OF PRO BONO LAWYERS WORKING ON BEHALF OF MR. MEESE I AM ACUTELY AWARE OF THE INJUSTICE OF THE INVESTIGATION AND ITS PUBLISHED REPORT ALTHOUGH MR. MEESE WAS CHARGED WITH MASTERMINDING SOME PERVASIVE COVERUP OF THE ALLEGED IRAN CONTRA SCHEME HE WAS NOT ALLOWED TO READ THE ENTIRE REPORT IN ADVANCE OF ITS PUBLICATION OR PHOTOCOPY PAGES OF THE REPORT THAT PERTAINED TO HIM HE WAS DENIED ACCESS TO COURT FILINGS INCLUDING MOTIONS AND PAPERS THAT AFFECTED HIS RIGHTS HE COULD NOT RELY ON GRAND JURY EVIDENCE OR CONFRONT HIS ACCUSERS AND HE WAS TOLD BY THE COURT HE COULDN'T EVEN TALK TO OTHERS WITH WHOM HE WAS ALLEGED TO HAVE CONSPIRED THUS THE INDEPENDENT COUNSEL PRONOUNCED ED MEESE GUILTY OF CRIMES WHILE SKIPPING SUCH INCONVENIENCES AS INDICTMENT AND TRIAL AS THE HIGHEST RANKING LAW OFFICER IN THE COUNTRY THE FORMER ATTORNEY GENERAL COULD NOT HAVE DREAMED OF CARRYING OUT SUCH A BIASED PROSECUTION THE WALSH ACCOUNT IS A BIZARRE BLEND OF FANTASY AND CONTRADICTION IT ADMITS THE INVESTIGATION FAILED TO UNCOVER SUFFICIENT EVIDENCE TO JUSTIFY PROSECUTION OF SOME CLAIMS AND THAT CHARGES AGAINST ED MEESE COULD NOT BE PROVED BEYOND A REASONABLE DOUBT WITH A COST IN EXCESS OF FORTY MILLION DOLLARS THIS REPORT REPRESENTS A FEEBLE ATTEMPT TO DIVERT ATTENTION FROM THE INDEPENDENT COUNSEL'S DISMAL IRAN CONTRA CONVICTION RECORD AND FROM HIS OWN CULPABILITY FOR VIOLATING RULES OF PROFESSIONAL RESPONSIBILITY AND FEDERAL LAW INCLUDING CRIMINAL PROCEDURAL REQUIREMENTS AND STATUTES PROTECTING CLASSIFIED DOCUMENTS AT THE CONCLUSION OF THE WATERGATE PROCEEDINGS IN NINETEEN SEVENTY FIVE LEON JAWORSKI THE FOREFATHER OF INDEPENDENT COUNSELS ISSUED A WATERGATE PROSECUTION FORCE REPORT IN IT HE WARNED THAT THE MOST IMPORTANT ELEMENT IN TERMS OF OUR CONSTITUTIONAL SYSTEM OF GOVERNMENT QUOTE IS THE NOTION OF FUNDAMENTAL FAIRNESS FOR THOSE WHO AFTER INVESTIGATION HAVE NOT BEEN CHARGED WITH ANY CRIMINAL MISCONDUCT QUOTE WHERE NO SUCH CHARGES ARE BROUGHT IT WOULD BE IRRESPONSIBLE UNETHICAL AND AN ABUSE OF POWER TO ISSUE A REPORT SUGGESTING CRIMINAL CONDUCT ON THE PART OF AN INDIVIDUAL WHO HAS NO EFFECTIVE MEANS OF CHALLENGING SUCH ALLEGATIONS BUT THE INDEPENDENT COUNSEL LAW AS DRAFTED IN NINETEEN SEVENTY EIGHT AND RE ENACTED IN THE EARLY NINETEEN EIGHTIES FOOLISHLY PERMITS A FINAL REPORT TO BE ISSUED EVEN WHEN NO INDICTABLE WRONGDOING HAS BEEN DISCOVERED THUS INVITING ACCUSATION AND INNUENDO AND DENYING THOSE ACCUSED A CHANCE TO RESPOND IN AN AUTHORITATIVE FORUM FOR ALL MR. WALSH'S EXCESSIVE ZEAL IN THESE INVESTIGATIONS THE LAW ITSELF SHARES PART OF THE BLAME FOR THIS LAST PUBLIC ASSAULT ON HONORABLE MEN THOSE WHO HAVE QUESTIONED MORRISON V. OLSON AND THE CONSTITUTIONALITY OF INDEPENDENT COUNSELS AND THOSE WHO NOW DISPUTE THE ADVISABILITY OF RENEWED INDEPENDENT COUNSEL LEGISLATION HAVE BEEN VINDICATED BY THIS REPORT AND THE IRRESPONSIBLE INVESTIGATION LEADING UP TO IT THE WHOLE MESS CONSTITUTES AN ABUSE OF POWER OF THE FIRST ORDER EVEN THE SPECIAL IRAN CONTRA COURT ACKNOWLEDGED THAT ITS DECISION TO RELEASE THIS REPORT MAY BE A DANGEROUS PRECEDENT AS JUSTICE SCALIA'S DISSENT IN MORRISON V. OLSON POINTED OUT WHILE MANY POLITICAL POWER STRUGGLES WIND THEIR WAY THROUGH THE JUDICIARY CLAD IN SHEEP'S CLOTHING THE INDEPENDENT COUNSEL IS A WOLF THAT COMES AS A WOLF SUCH UNBRIDLED PROSECUTORIAL POWER HAS NO PLACE IN OUR AMERICAN SYSTEM OF SEPARATED AND DIVISIBLE POWERS MR. BREDEMEIER IS GENERAL COUNSEL FOR LANDMARK LEGAL FOUNDATION WHICH REPRESENTS FORMER ATTORNEY GENERAL EDWIN MEESE IN THE IRAN CONTRA PROCEEDINGS HERE ARE SOME THINGS THAT HAPPENED IN AND AROUND THE GREAT EARTHQUAKE OF NINETEEN NINETY FOUR CIRCA LOS ANGELES AND MALIBU CALIFORNIA MY SON MR. PERFECT A SIX YEAR OLD ANGEL SLEPT THROUGH THE EARTHQUAKE ON MONDAY MORNING WHEN HE AWOKE HE WAS STUNNED THAT HIS CARTOONS WERE NOT ON AND WANTED TO KNOW WHY IF I LOVED HIM I COULDN'T TURN THE POWER BACK ON G. A MADAM WHO'S BEEN UPSET FOR MONTHS AT ALL OF THE ATTENTION THAT HEIDI FLEISS GOT AND WHO SEEMS TO WANT ME TO GHOSTWRITE HER AUTOBIOGRAPHY WHICH I'M NOT GOING TO DO CALLED FOUR TIMES TO TELL ME THAT THE EARTHQUAKE DID NOT SCARE HER AND THAT SHE WAS READY TO BE A MOVIE STAR AND THAT THE PROOF WAS THAT SHE HAD AN EARTHQUAKE PREPAREDNESS KIT IN HER CAR K. G. B. WHICH IS THE REAL NAME OF A ROCK RADIO STATION IN SAN DIEGO THAT I GET CLEARLY IN MALIBU BROADCAST SIXTIES ROCK SONGS FOR TWO HOURS MONDAY MORNING REPORTED ON QUOTE OUTSTANDING QUOTE SURF CONDITIONS AND DID NOT ONCE MENTION THE EARTHQUAKE IN ITS SOMEWHAT LARGER NEIGHBOR TO THE NORTH MY ASSISTANT K. NOTIFIED ME THAT SHE WAS REALLY ANNOYED BECAUSE A CASTING SESSION FOR L. A. LAW WHICH WAS SURELY GOING TO MAKE HER INTO A STAR HAD BEEN CANCELED BECAUSE OF THE EARTHQUAKE WHICH REALLY MADE HER WANT TO CRY T. A FORMER COLLEAGUE WHO NOW LIVES IN THE SAN FERNANDO VALLEY TOLD ME THAT HER WHOLE APARTMENT HAD BEEN TRASHED AND THAT EVERYTHING SHE HAD WAS RUINED AND SAID THAT SHE WOULD PROBABLY HAVE TO GO TO IDAHO TO SKI TO GET OVER THE PAIN SHE WAS CRYING ON SUNSET STRIP NEAR THE CHATEAU MARMONT HOTEL TWO CONSCIENTIOUS HOOKERS WHO ENDLESSLY PATROL A CERTAIN STRETCH OF THE SIDEWALK WERE ON THE JOB EVEN AFTER A MAJOR EARTHQUAKE AND A DUSK TO DAWN CURFEW SEVERAL HOURS AFTER DUSK WINKING AND SMILING AT THE PASSERSBY THE BIG PARTY TO MARK THE RE OPENING OF THE TOWN'S PREMIER RESTAURANT MORTON'S A ONE THOUSAND DOLLAR A PLATE DINNER TO AID AN ENVIRONMENTAL GROUP WAS CANCELED SAVING YOURS TRULY TWO THOUSAND DOLLARS MR. PERFECT LEARNED THAT HE HAD SOME OLD EPISODES OF SONIC THE HEDGEHOG ON TAPE THAT COULD TIDE HIM OVER ONCE WE DROVE FORTY MILES TO OUR HOUSE IN TOWN WHICH HAD POWER BUT NO CABLE HE WAS INTENSELY RELIEVED TODAY AS I WRITE THIS ON THE DAY AFTER THE QUAKE IT IS PAINFULLY HOT JOHN COYNE CALLED ME FROM CHICAGO TO TELL ME THAT I MIGHT FEEL BETTER KNOWING THAT IT WAS TWENTY BELOW ZERO ON MICHIGAN AVENUE THE FULL COMPLEMENT OF HOOKERS WAS OPERATING ON SUNSET BOULEVARD MY AGENT CALLED TO TELL ME THAT SHE NEEDED MORE DEMO TAPES IT'S HARD TO BELIEVE THAT PEOPLE ACTUALLY HAVE DIED TRAGIC PREMATURE DEATHS IN A PLACE LIKE THIS BUT THEY HAVE MR. STEIN IS A WRITER AND ACTOR I TAKE EXTREME EXCEPTION TO THE NASTY MINDED COMMENTS MADE BY GLORIA STEINEM CONCERNING THE BEHAVIOR OF TEXAS SENATOR KAY BAILEY HUTCHISON IN YOUR DECEMBER FOURTEENTH PAGE ONE ARTICLE QUOTE OTHER NATIONS ELECT WOMEN TO LEAD THEM SO WHY DOESN'T U. S. QUOTE WHILE SENATOR HUTCHISON'S POLITICAL PHILOSOPHY AND HER LEGAL DIFFICULTIES TEND TO GIVE ONE PAUSE IT IS MORE ALARMING TO WATCH MS. STEINEM A LEADER OF SO CALLED STRONG AND INDEPENDENT WOMEN FULMINATING IN A MOST UNDIGNIFIED FASHION ABOUT ANOTHER STRONG AND INDEPENDENT WOMAN WHOSE ONLY FAULT OTHER THAN THOSE MENTIONED ABOVE IS OF HAVING COMMITTED THE UNPARDONABLE SIN FROM A FEMINIST PERSPECTIVE OF HAVING THE AUDACITY TO POSSESS A DIFFERENT POINT OF VIEW FROM THAT OF MS. STEINEM AND HER DEVOTEES BUT IF ONE EXAMINES MS. STEINEM'S MALICIOUS DEPICTION OF SENATOR HUTCHISON AS A FEMALE IMPERSONATOR MORE CLOSELY FOR ITS SEMANTIC IMPLICATIONS A NOT ESPECIALLY ORIGINAL ASPECT BECOMES FAR MORE EVIDENT NAMELY THE TRACES OF A FAR EARLIER AND MORE PERNICIOUS MINDSET SHARED BY THOSE WHO PARTICIPATED IN THE STRUGGLE FOR WOMEN'S SUFFRAGE THE PUTATIVE MORAL SUPERIORITY OF WOMEN WITH MEN AS BASE SINFUL CREATURES READY TO UNDERMINE ALL THE HARD WORK OF WOMEN AT THE FIRST OPPORTUNITY ALLOWING WOMEN TO VOTE SO THEY SAID WOULD SERVE AS A TEMPERING INFLUENCE UPON MALE EVIL A RATHER QUAINT NOTION SEVERELY UNDERCUT BY THE TENDENCY UNTIL VERY RECENTLY TOWARD VERY SIMILAR VOTING PATTERNS IN BOTH MEN AND WOMEN MS. STEINEM AND HER MOVEMENT ARE THE CARRIERS OF THIS FEMINIST ARGUMENT INTO THE PRESENT DAY IN SUGGESTING THAT THERE IS SOMETHING SINISTER IN PRESUMED POLITICAL CROSS DRESSING MS. STEINEM PERPETUATES THE VERY MYTHS ABOUT SEPARATE AND APPROPRIATE SPHERES OF BEHAVIOUR BASED SOLELY UPON GENDER THAT HER IDEOLOGICAL ENEMIES MIGHT USE AGAINST HER MORE OUTRAGEOUS HOWEVER IS MS. STEINEM'S BELIEF THAT WOMEN CANNOT TRUST ONE OF THEIR OWN WHO LOOKS LIKE US AND THINKS LIKE THEM WHAT CAN ONE MAKE OF THIS STATEMENT COMING AS IT DOES FROM A WOMAN WHO BY HER OWN ADMISSION SPENT FIVE YEARS DATING A MAN WHO TREATED HER BADLY AND WHO WOULD NOT END THE RELATIONSHIP BECAUSE SHE DID NOT WANT TO EXIST WITHOUT A MAN IN HER LIFE WHILE SIMULTANEOUSLY ACTING AS THE SPOKESWOMAN FOR AN ORGANIZATION DEDICATED TO THE LIBERATION OF WOMEN BY ALL ACCOUNTS SENATOR HUTCHISON APPEARS TO HAVE HER PERSONAL LIFE UNDER CONTROL AT THE VERY LEAST HER IDEOLOGY UNLIKE THAT OF MS. STEINEM IS MORE OR LESS CONSISTENT IF MS. STEINEM WANTS TO KNOW WHY MANY WOMEN HAVE RECENTLY BEEN REJECTING THE LABEL OF FEMINISM WHILE STILL RETAINING THE DESIRE TO WORK HARD AND TO ACHIEVE SUCCESS BY MASCULINE STANDARDS ONE MIGHT RESPECTFULLY SUGGEST THAT THE REDOUBTABLE MS. STEINEM EXAMINE THE NOT SO SUBTLE STENCH OF HYPOCRISY THAT ENVELOPS HER MOVEMENT THE SUGGESTION THAT CLINTON'S FOCUS ON DOMESTIC CONCERNS MAY MEAN THAT WOMEN CAN OVERCOME THE COMMANDER IN CHIEF SYNDROME IS NONSENSE AND THE DEBUNKING OF THE PARLIAMENTARY SYSTEM EXPLANATION OF WHY NATIONS INCLUDING SOME THAT TREAT WOMEN AS CHATTEL HAVE CHOSEN WOMEN AS CHIEF EXECUTIVES IS WISHFUL THINKING THE FINAL ISSUE IS NOT WHETHER WOMEN CAN BE EFFECTIVE MAYORS GOVERNORS OR LEGISLATORS IT IS WHETHER THEY CAN SERVE AS COMMANDER IN CHIEF CAN A WOMAN SEND OTHER WOMEN'S SONS TO DIE IN BATTLE YES DO A WHOLE LOT OF ORDINARY VOTERS THINK SO NUMBER IN A PARLIAMENTARY SYSTEM THE WOMAN SELECTED IS PERSONALLY KNOWN TO THOSE WHO CHOOSE HER DID ANY MEMBER OF THE BRITISH PARLIAMENT DOUBT THAT MAGGIE THATCHER COULD SEND OTHER WOMEN'S SONS OUT TO DIE I THINK NOT IN A PRESIDENTIAL SYSTEM WHERE THE COMMANDER IN CHIEF IS CHOSEN BY ORDINARY FOLK IN THE BEAUTY SHOPS AND BARBERSHOPS IN THE BRIDGE CLUBS AND BARS THERE IS GREAT THOUGH MISTAKEN DOUBT WHEN A WOMAN IS CHOSEN PRESIDENT IT WILL BE A WOMAN WHO UNLIKE BILL CLINTON IS RESPECTED FOR HER FOREIGN NOT HER DOMESTIC POLICY POSITION CORNING INCORPORATED CORNING N. Y. SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER EIGHT MILLION COMMON SHARES UP FROM SIX POINT SEVEN MILLION THE COMPANY ORIGINALLY PLANNED CORNING WHICH HAS BUSINESSES IN SPECIALTY MATERIALS CONSUMER HOUSEWARES TELECOMMUNICATIONS AND LABORATORY SCIENCES SAID IT DECIDED TO INCREASE THE OFFERING'S SIZE AFTER QUOTE AN ASSESSMENT OF MARKET CONDITIONS QUOTE CORNING WILL USE PROCEEDS FROM THE OFFERING TO FINANCE ITS ONE HUNDRED EIGHT POINT FIVE MILLION DOLLARS PART OF THE PURCHASE OF NORTHERN TELECOM LIMITED'S OPTICAL FIBER AND CABLE BUSINESSES THE TOTAL PURCHASE PRICE IS ONE HUNDRED THIRTY MILLION DOLLARS BUT CORNING IS BUYING THE BUSINESSES WITH ITS SIECOR JOINT VENTURE SIEMENS CORPORATION THE JOINT VENTURE PARTNER AND A UNIT OF SIEMENS A. G. WILL PAY THE REMAINDER CORNING ALSO WILL USE MONEY FROM THE OFFERING TO PAY ONE HUNDRED THIRTY ONE MILLION DOLLARS FOR ENDING A JOINT VENTURE WITH VITRO S. A. OF MEXICO GOLDMAN SACHS AND COMPANY IS THE LEAD UNDERWRITER IT MAY BE IMPOSSIBLE TO KICK TONYA HARDING OFF THE U. S. OLYMPIC TEAM MS. HARDING THE U. S. FIGURE SKATING CHAMPION HASN'T BEEN ACCUSED OF WRONGDOING IN THE ATTACK ON RIVAL SKATER NANCY KERRIGAN BUT COMMITTEE OFFICIALS HAVE SAID THAT CONCERNS ABOUT THE IMPACT ON THE COMPETITION COULD BE GROUNDS FOR REMOVING MS. HARDING FROM THE TEAM FEAR OF LITIGATION HOWEVER HAS MADE IT MUCH TOUGHER FOR AMATEUR SPORTS ORGANIZATIONS TO BAR WORLD CLASS ATHLETES FROM COMPETING THESE PRECEDENTS ARE LIKELY TO HAVE AN IMPACT ON THE U. S. OLYMPIC COMMITTEE'S REVIEW OF MS. HARDING'S STATUS TO COMPETE IN THE WINTER OLYMPICS NEXT MONTH ORDINARILY NONPROFESSIONAL SPORTS GROUPS HAVE PLENTY OF LEEWAY IN SETTING RULES FOR WHO CAN COMPETE SUCH AS SUSPENDING PLAYERS ACCUSED OF GAMBLING OR DRUG VIOLATIONS BUT AS THE WINNERS' STAKES HAVE GROWN A GOLD MEDAL FOR INSTANCE BRINGS SEVEN FIGURE ENDORSEMENT FEES SO HAVE THE LEGAL PROTECTIONS FOR ATHLETES FACING PENALTIES THAT COULD JEOPARDIZE THEIR CAREERS EVEN IF MS. HARDING WAS CRIMINALLY CHARGED IN CONNECTION WITH THE ATTACK THE OLYMPIC COMMITTEE COULD FACE A TOUGH COURT BATTLE IF IT BARRED HER FROM COMPETING MANY SPORTS LAW SPECIALISTS SAY AS AN ATHLETE DEPRIVED OF PARTICIPATING IN PERHAPS THE GREATEST OPPORTUNITY OF HER CAREER MS. HARDING WOULD HAVE STRONG LEGAL CLAIMS THE LAWYERS SAY TO SUE FOR LOST EARNINGS INTERFERENCE WITH FUTURE BUSINESS DEALS AND EVEN CLAIMS OF IRREPARABLE HARM IF THE COMMITTEE SEEKS TO DISQUALIFY MS. HARDING QUOTE THEY'RE JUST BUYING A LAWSUIT QUOTE SAYS JEFFREY IZENMAN AN ATTORNEY IN THE CHICAGO OFFICE OF KATTEN MUCHIN AND ZAVIS SUCH A SUIT COULD PROVE COSTLY IN ONE OF THE FEW SUITS OVER AN OLYMPIC CONTENDER'S RIGHT TO COMPETE TRACK STAR BUTCH REYNOLDS WON A TWENTY SEVEN POINT FOUR MILLION DOLLAR AWARD IN DECEMBER NINETEEN NINETY TWO FROM THE INTERNATIONAL AMATEUR ATHLETIC FEDERATION THE FEDERAL JUDGE IN THAT CASE RULED THAT WHEN AN ATHLETE'S LIVELIHOOD IS AT STAKE A PRIVATE SPORTS ORGANIZATION MUST FOLLOW THE SAME DUE PROCESS REQUIREMENTS THAT BAR THE GOVERNMENT FROM UNFAIRLY TAKING A PERSON'S PROPERTY MR. REYNOLDS WAS SUSPENDED FROM COMPETING AFTER HE ALLEGEDLY TESTED POSITIVE FOR STEROIDS IN NINETEEN NINETY BUT THE COURT FOUND THAT THE TESTS WERE FLAWED AS MR. REYNOLDS HAD MAINTAINED AND IT ORDERED THE INTERNATIONAL TRACK ORGANIZATION TO PAY DAMAGES FOR BREACHING ITS CONTRACTUAL OBLIGATIONS TO MR. REYNOLDS THE COURT SAID THE ORGANIZATION HAD VIOLATED MR. REYNOLDS' RIGHTS BY NOT GRANTING A FULL AND FAIR OPPORTUNITY FOR THE DISPUTED STEROID TESTS TO BE RECONSIDERED THE EVIDENCE BEFORE THE COURT ESTABLISHES THAT THE INTERNATIONAL AMATEUR ATHLETIC FEDERATION'S GOAL THROUGHOUT THESE PROCEEDINGS WAS AND REMAINS SOLELY TO PROTECT ITS REPUTATION SAID U. S. DISTRICT JUDGE JOSEPH KINNEARY IN HIS RULING THE COLUMBUS OHIO JUDGE'S DECISION WHICH HAS BEEN APPEALED CALCULATED COMPENSATORY DAMAGES AT SIX POINT EIGHT MILLION DOLLAR BASED ON MR. REYNOLDS PAST ENDORSEMENT CONTRACTS AND PUNITIVE DAMAGES OF TWENTY POINT FIVE MILLION DOLLARS PAUL WEILER A HARVARD LAW SCHOOL PROFESSOR SPECIALIZING IN SPORTS LAW SAID AFTER THE BUTCH REYNOLDS DECISION THE OLYMPIC COMMITTEE WILL THINK TWICE ABOUT KEEPING MS. HARDING FROM COMPETING DAVID YOUNG AN ATTORNEY FOR MR. REYNOLDS SAID THE LESSON FOR SPORTS ORGANIZATIONS IN THE REYNOLDS CASE SHOULD BE THAT U. S. COURTS PUT A PREMIUM ON PROTECTING INDIVIDUAL ATHLETES' RIGHTS AMATEUR SPORTS ORGANIZATIONS CAN BAR ATHLETES FROM PARTICIPATING IF THEY PROTECT THE ATHLETES' DUE PROCESS RIGHTS AND FOLLOW FAIR PROCEDURES SAID MR. YOUNG IN MS. HARDING'S CASE THE MAIN QUESTION FACING OLYMPIC OFFICIALS AT THIS POINT IS WHETHER THE TAINT OF SUSPICION IS ENOUGH TO KEEP HER FROM COMPETING MS. HARDING'S BODYGUARD SHAWN ERIC ECKARDT HAS BEEN ARRESTED FOR ALLEGEDLY ARRANGING THE ATTACK AND QUESTIONS HAVE BEEN RAISED ABOUT MS. HARDING'S EX HUSBAND'S POSSIBLE LINKS TO THE PLOT THE EX HUSBAND JEFF GILLOOLY HASN'T BEEN CHARGED AND THROUGH HIS ATTORNEY HAS DENIED HAVING ANY ROLE IF THE OLYMPIC COMMITTEE VOTED TO BAR MS. HARDING HER FIRST STEP PROCEDURALLY WOULD BE AN ARBITRATION HEARING PROVIDED FOR UNDER A FEDERAL AMATEUR SPORTS LAW AT THAT PROCEEDING ARBITRATORS WOULD HAVE TO LOOK CLOSELY AT THE SPECIFIC ALLEGATIONS THAT LED THE COMMITTEE TO ITS DECISION ATTORNEYS SAID THAT EVEN IF ARBITRATORS AGREED WITH THE COMMITTEE MS. HARDING WOULD BE ENTITLED TO GO TO COURT TO SEEK IMMEDIATE RECOURSE SUCH AS AN INJUNCTION BLOCKING THE COMMITTEE FROM BARRING HER PARTICIPATION A COURT WOULD HAVE TO WEIGH THE COMMITTEE'S CONCERNS AGAINST THE OPPORTUNITIES MS. HARDING WOULD LOSE THE IMAGE PROBLEM RAISED BY THE OLYMPICS COMMITTEE IS VERY SPECULATIVE ON THE OTHER SIDE OF THE COIN IS THE HUGE COST TO THE INDIVIDUAL SAYS PROFESSOR WEILER OF HARVARD IN A SITUATION SUCH AS MS. HARDING'S A COURT WOULD CONSIDER QUOTE THE FACT THAT SOMEONE HAS INVESTED YEARS OF THEIR LIFE IN THE SPORT YOU HAVE A RIGHT TO EXPECT A RETURN ON THAT INVESTMENT UNLESS THERE'S SOME VERY GOOD REASON TO TAKE IT AWAY FROM YOU SAYS PROFESSOR WEILER IN ADDITION TO ANY POSSIBLE COMMERCIAL ENDORSEMENTS AN OLYMPIC MEDAL WOULD INCREASE HER FUTURE OPPORTUNITIES TO SKATE PROFESSIONALLY AND TO GARNER PERSONAL APPEARANCE FEES ALREADY HOWEVER THE VALUE OF ANY MEDAL MS. HARDING MIGHT WIN AT THE OLYMPICS HAS DROPPED AGENTS AND SPORTS LAWYERS SAY SHE IS UNLIKELY TO RECEIVE ANYWHERE NEAR THE LEVEL OF ENDORSEMENT OFFERS SHE MIGHT OTHERWISE HAVE EXPECTED THAT FACT COULD MAKE IT TOUGHER FOR MS. HARDING TO PROVE SUBSTANTIAL ECONOMIC HARM THE COMMITTEE'S ATTORNEYS COULD SAY THAT THE VALUE OF ANY OLYMPIC WIN BY HARDING IS ZERO EVEN IF THEY LET HER COMPETE SAYS MR. IZENMAN OF KATTEN MUCHIN IN CHICAGO EVEN SO MS. HARDING COULD ARGUE THAT A COURT SHOULD CLEAR THE WAY FOR HER TO COMPETE IF ONLY BECAUSE SHE WOULD BE IRREPARABLY HARMED BY NOT BEING ABLE TO PARTICIPATE IN THE OLYMPICS THE CLAIM WOULD BE BASED ON THE ARGUMENT THAT SHE WAS BEING DEPRIVED UNFAIRLY OF A ONCE IN A LIFETIME OPPORTUNITY NOTED LEGAL ETHICS AUTHORITY GEOFFREY C. HAZARD JUNIOR WILL JOIN THE FACULTY OF THE UNIVERSITY OF PENNSYLVANIA LAW SCHOOL IN JULY THE SIXTY FOUR YEAR OLD PROFESSOR WHO HAS TAUGHT AT YALE LAW SCHOOL SINCE NINETEEN SEVENTY ONE IS EXPECTED TO TEACH PROFESSIONAL RESPONSIBILITY AND CIVIL PROCEDURE AS WELL AS WORK WITH THE LAW SCHOOL'S CENTER ON PROFESSIONALISM HE WILL ALSO REMAIN A DIRECTOR OF THE LEGAL REFORM ORIENTED AMERICAN LAW INSTITUTE IN PHILADELPHIA WHERE HE CURRENTLY SPENDS SEVERAL DAYS EACH WEEK MARGARET A. JACOBS CONTRIBUTED TO THIS ARTICLE AN INVESTOR GROUP THAT INCLUDES CONTINENTAL BANK'S VENTURE CAPITAL AFFILIATE SIGNED A LETTER OF INTENT TO ACQUIRE STANDARD RATE AND DATA SERVICE INCORPORATED FROM THE LATE ROBERT MAXWELL'S BUSINESS EMPIRE STANDARD RATE AND DATA A WILMETTE ILLINOIS PUBLISHER OF REFERENCE INFORMATION USED BY ADVERTISING AGENCIES IS A UNIT OF LONDON BASED MAXWELL COMMUNICATION CORPORATION WHICH IS IN BANKRUPTCY LAW PROCEEDINGS CONTINENTAL ILLINOIS VENTURE CORPORATION THE CONTINENTAL BANK AFFILIATE SAID THE PURCHASE PRICE IS BETWEEN FIFTY MILLION DOLLARS AND SEVENTY MILLION DOLLARS THE TRANSACTION IS EXPECTED TO BE COMPLETED BY MARCH THIRTY FIRST PRICE WATERHOUSE THE COURT APPOINTED ADMINISTRATOR SAID STANDARD RATE AND DATA IS THE LAST SIGNIFICANT PIECE OF MAXWELL COMMUNICATION'S U. S. ASSETS TO BE SOLD PRICE WATERHOUSE SAID IT WILL WRITE MAXWELL COMMUNICATION'S CREDITORS BY THE END OF THE MONTH TO ANNOUNCE THE RESULT OF THE ASSET SALES IT ADDED THAT THE STANDARD RATE AND DATA DEAL WILL BRING ASSET SALES TO MORE THAN ONE POINT FIVE BILLION DOLLARS BERNADINE HEALY'S DECEMBER TWENTY EIGHTH EDITORIAL PAGE ARTICLE QUOTE MAMMOGRAMS YOUR BREASTS YOUR CHOICE QUOTE BRINGS TO MIND A QUOTE FROM MARK TWAIN QUOTE A HALF EDUCATED PHYSICIAN IS NOT VALUABLE HE THINKS HE CAN CURE EVERYTHING IT IS IMPORTANT TO CONSIDER THE OTHER HALF OF THE FACTS DOCTOR HEALY CITES EIGHT TRIALS THAT FAILED TO SHOW ANY BENEFIT OF MAMMOGRAPHY FOR YOUNGER WOMEN DESPITE THIS LACK OF EVIDENCE SHE STATES THAT THE TEST SHOULD REMAIN PART OF THE CATECHISM OF WOMEN'S HEALTH BECAUSE IT DOES NO HARM SHE FAILED TO MENTION THAT OVER TEN YEARS' TIME A WOMAN WILL HAVE THREE OUT OF EVERY TEN MAMMOGRAMS AND EXAMINATIONS INCORRECTLY INTERPRETED AS A POSSIBLE CANCER KNOWN AS THE FALSE POSITIVE RATE AND THAT NEARLY EVERY WOMEN WHO GETS THIS REPORT MUST UNDERGO SURGERY TO ELIMINATE THE DIAGNOSIS OF CANCER REGRETTABLY THE DATA SHE QUOTES CONFIRMS THAT THERE IS NO EVIDENCE THAT EARLY DETECTION BY MAMMOGRAPHY SAVES LIVES FOR WOMEN UNDER THE AGE OF FIFTY YEARS THE SEVENTEEN PERCENT DIFFERENCE IN SURVIVAL QUOTED BY DOCTOR HEALY IS NOT STATISTICALLY SIGNIFICANT WHICH MEANS THAT THOSE DIFFERENCES ARE PROBABLY DUE TO CHANCE ALONE DOCTOR HEALY WOULD NOT HAVE ALLOWED ONE OF HER SCIENTISTS AT THE NATIONAL INSTITUTES OF HEALTH TO MAKE A CONCLUSION BASED ON SUCH WEAK EVIDENCE IN FACT THE SWEDEN TRIAL SHOWED THAT YOUNGER WOMEN SCREENED WITH MAMMOGRAPHY HAD A HIGHER DEATH RATE FROM BREAST CANCER THAN THOSE WOMEN WHO WERE NOT SCREENED DOCTOR HEALY RELIES HEAVILY ON ENDORSEMENTS BY THE AMERICAN CANCER SOCIETY AND OTHER ORGANIZATIONS THEY ARE NOT THE EQUIVALENT OF SCIENTIFIC EVIDENCE DOCTOR HEALY ALSO ACCUSED THE ADMINISTRATION OF CREATING A NEW METHOD OF RATIONING BY ELIMINATING COVERAGE FOR A TEST THAT HAS NOT BEEN PROVEN TO BE EFFECTIVE IS FAILURE TO PROVIDE WORTHLESS OR UNPROVEN TESTS RATIONING OR SIMPLY RESPONSIBLE POLICY I CANNOT UNDERSTAND SUPPORTING INEFFECTIVE THERAPIES AND TESTS WHEN THE FEDERAL GOVERNMENT CANNOT FIND ENOUGH MONEY TO PAY FOR TREATMENTS THAT HAVE PROVEN VALUE SHE IS ABSOLUTELY CORRECT THAT A DEFINITIVE STUDY IS NECESSARY IT IS CURIOUS THAT SHE FAILED TO SPONSOR SUCH A STUDY DURING HER TENURE AS DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH ALLOWING PATIENTS AND PHYSICIANS TO BE HALF EDUCATED ON THIS ISSUE AND TO CONTINUE SPONSORING A DETECTION PROGRAM THAT PROBABLY DOESN'T WORK IS THE WRONG PUBLIC AND MEDICAL POLICY DOCTOR HEALY HAS EXPOSED THE MAJOR PROBLEM WITH THE CLINTONS' PROPOSAL FOR HEALTH CARE REFORM LACK OF CHOICE WHAT DOCTOR HEALY DID NOT MENTION IN HER OPINION WAS THAT IN SPITE OF WHAT THE NATIONAL INSTITUTES OF HEALTH SAYS IF I LOSE MY WIFE TO THE RAVAGES OF BREAST CANCER SHE IS NOT A STATISTIC SHE WAS MY WIFE AND THE MOTHER OF MY CHILDREN IT WOULD BE A LOSS THAT COULD NOT BE MEASURED OR APPRECIATED BY ANY BUREAUCRAT SO AS A FAMILY WE HAVE MADE A CHOICE EVERY YEAR SINCE THE AGE OF FORTY MY WIFE HAS HAD A MAMMOGRAM TO EASE HER MIND ABOUT THE LEGITIMATE FEAR OF EVERY WOMAN IN REGARD TO BREAST CANCER WE HAVE MADE A CHOICE THAT THE CLINTONS' HEALTH CARE PLAN WILL EXCLUDE WHAT OF THE FAMILY OR INDIVIDUAL WHO OPPOSES ABORTION ON MORAL AND SLASH OR RELIGIOUS GROUNDS WILL THEY HAVE A CHOICE IN THEIR HEALTH CARE PLAN NO THEY WILL BE FORCED TO PAY PREMIUMS INTO THE ONLY PLAN AVAILABLE A HEALTH ALLIANCE THAT WILL PAY FOR ABORTION ON DEMAND WHAT OF THE YOUNG HEALTHY TWENTY FIVE YEAR OLDS OFF THEIR PARENTS' HEALTH INSURANCE WHO DECIDE NOT TO CARRY HEALTH INSURANCE FOR A FEW YEARS WHILE THEY STRUGGLE MAKING THEIR WAY IN THE TOUGH ECONOMIC CLIMATE OF TODAY WILL THEY HAVE A CHOICE NO THEY WILL BE FORCED INTO A PREMIUM ARRANGEMENT WITH A LOCAL ALLIANCE UNDER THE CLINTON PLAN WILL YOU HAVE A CHOICE OF DOCTORS YOU WILL BE ABLE TO CHOOSE FROM A PANEL OF DOCTORS ASSOCIATED WITH YOUR ALLIANCE IF YOUR PERSONAL PHYSICIAN IS NOT ON THAT PANEL SORRY YOU WILL HAVE TO CHANGE THE STEALTH ISSUE OF CHOICE IN THE CLINTON PLAN WILL BE THE LACK OF THE CHOICE YOUR DOCTOR WILL HAVE IN MAKING THE BEST DECISIONS FOR YOUR PROBLEMS YOUR DOCTOR WILL BE WORKING FOR A HEALTH ALLIANCE AND WILL BE ECONOMICALLY CREDENTIALED SHE OR HE WILL NO LONGER BE ABLE TO BE YOUR ADVOCATE SHE WILL BE TOLD WHAT DRUGS CAN BE ORDERED ONLY GENERIC DRUGS PLEASE AND NOT THE LATEST TREATMENT FOR ALZHEIMERS WHAT TESTS CAN BE DONE NO MAMMOGRAPHY UNDER FIFTY WHAT TREATMENTS CAN BE APPLIED NO BONE MARROW TRANSPLANTS FOR THE ESTABLISHED BREAST CANCER THAT WAS NOT DETECTED BY MAMMOGRAPHY BECAUSE YOU WERE UNDER FIFTY THE CLINTONS WILL SEE TO IT THAT YOUR DOCTOR IS NO LONGER YOUR ADVOCATE WHEN COSTS ESCALATE OUT OF CONTROL AS THEY DO IN ALMOST EVERY GOVERNMENT CONTROLLED PROGRAM YOUR DOCTORS' CHOICES WILL BE EVEN FURTHER LIMITED RICHARD J. HADALA THIRTY SIX YEARS OLD WAS NAMED VICE PRESIDENT OF STRATEGIC MANAGEMENT OF THIS POWER GENERATION DEFENSE ELECTRONICS AND BROADCASTING CONCERN MR. HADALA WILL BE RESPONSIBLE FOR STRATEGIC PLANNING AND BUSINESS DEVELOPMENT AND WILL WORK CLOSELY WITH THE COMPANY'S BUSINESS UNITS TO STRENGTHEN THEIR STRATEGIC PLANS WESTINGHOUSE SAID HE WILL REPORT DIRECTLY TO CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL H. JORDAN WHO TOOK OVER THE TOP POSTS LAST JUNE MR. HADALA FORMERLY WAS A PARTNER WITH MCKINSEY AND COMPANY THE CONSULTING FIRM WHERE MR. JORDAN WORKED FROM NINETEEN SIXTY FOUR TO NINETEEN SEVENTY FOUR GRUPO FINANCIERO BANAMEX ACCIVAL MEXICO'S LARGEST BANK HOLDING COMPANY SAID NINETEEN NINETY THREE EARNINGS ROSE THIRTY FIVE PERCENT TO THREE POINT FIVE NINE BILLION PESOS ONE POINT ONE SIX BILLION DOLLARS FROM TWO POINT SIX SIX BILLION PESOS IN NINETEEN NINETY TWO AS A RESULT OF STRONG TRADING PROFITS AND STRONGER FEE INCOME THE COMPANY'S SERIES L. SHARES THOSE TYPICALLY OWNED BY FOREIGN INVESTORS ROSE THREE POINT TWO PERCENT TO TWENTY FIVE POINT FOUR OH PESOS YESTERDAY ON MEXICO'S STOCK EXCHANGE EXPENSES CLIMBED FOR THE YEAR IN NEARLY EVERY CATEGORY FOR THE COMPANY KNOWN AS BANACCI BUT HIGHER COSTS WERE MORE THAN OFFSET BY STRONG INCREASES IN FEE AND TRADING INCOME BANACCI SAID NONINTEREST INCOME MORE THAN DOUBLED IN THE FOURTH QUARTER BECAUSE OF THE BIG RALLY IN MEXICAN STOCKS AFTER THE APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT AMONG OTHER THINGS FOR THE YEAR NONINTEREST INCOME WAS UP TWENTY NINE PERCENT FEE INCOME ROSE TWENTY SIX PERCENT BUT BANACCI CONTINUES TO HAVE TROUBLE WITH PAST DUE LOANS WHICH ROSE SEVENTEEN PERCENT ON A GROSS BASIS DURING THE QUARTER ACCORDING TO CATHERINE MURRAY BANK STOCK ANALYST AT J. P. MORGAN SECURITIES QUOTE ASSET QUALITY IS STILL AN ISSUE QUOTE SHE SAID PHARMACEUTICAL RESOURCES INCORPORATED SAID ITS PAR PHARMACEUTICALS INCORPORATED UNIT AGREED TO DEVELOP GENERIC VERSIONS OF PHARMACEUTICAL PRODUCTS WITH THREE M. PHARMACEUTICALS A DIVISION OF MINNESOTA MINING AND MANUFACTURING COMPANY THE COMPANIES DID NOT DISCLOSE TERMS OF THE AGREEMENT OR THE SPECIFIC PRODUCTS INVOLVED MBNA CORPORATION SAID FOURTH QUARTER NET INCOME ROSE TWENTY TWO PERCENT AND DIRECTORS APPROVED A THREE FOR TWO STOCK SPLIT AND A TWELVE POINT FIVE PERCENT INCREASE IN THE QUARTERLY DIVIDEND THE NEWARK DELAWARE BANK CREDIT CARD CONCERN SAID NET INCOME ROSE TO SIXTY THREE POINT THREE MILLION DOLLARS OR SIXTY THREE CENTS A SHARE FROM FIFTY ONE POINT EIGHT MILLION DOLLARS OR FIFTY TWO CENTS A SHARE A YEAR EARLIER THE STOCK SPLIT IS EFFECTIVE FEBRUARY FOURTEENTH TO SHARES OF RECORD FEBRUARY SECOND THE COMPANY DECLARED A QUARTERLY DIVIDEND OF EIGHTEEN CENTS A SHARE PAYABLE APRIL FIRST TO STOCK OF RECORD MARCH EIGHTEENTH THE DIVIDEND IS EQUAL TO TWENTY SEVEN CENTS ON A PRE SPLIT BASIS THE COMPANY PREVIOUSLY PAID TWENTY FOUR CENTS QUARTERLY MBNA SAID IT ADDED THREE POINT FOUR MILLION CREDIT CARD CUSTOMERS DURING THE YEAR BOOSTING THE TOTAL TO MORE THAN TEN MILLION CREDIT CARD CHARGE VOLUME DURING THE YEAR ROSE TWENTY THREE PERCENT TO SEVENTEEN POINT NINE BILLION DOLLARS TOTAL ASSETS AT YEAR END STOOD AT SIX POINT NINE FIVE BILLION DOLLARS UP FROM FIVE POINT NINE EIGHT BILLION DOLLARS AT THE END OF NINETEEN NINETY TWO MANAGED LOANS WHICH INCLUDE LOANS PACKAGED AND SOLD AS SECURITIES ROSE TWENTY FIVE PERCENT TO TWELVE POINT FOUR BILLION DOLLARS CHRISTIE WHITMAN'S ECONOMIC PROGRAM FOR NEW JERSEY IS STRAIGHTFORWARD CUT TAXES AND RESTRAIN SPENDING SHE PROPOSES PUTTING INTO PLACE THREE ANNUAL TEN PERCENT PERSONAL INCOME TAX RATE CUTS THE FIRST BEGINNING RETROACTIVELY AS SHE ANNOUNCED YESTERDAY ELIMINATING INCOME TAXES FOR LOW INCOME FAMILIES AND RESTRAINING STATE SPENDING INCREASES TO THE RATE OF INFLATION MRS. WHITMAN WHO TAKES OVER AS GOVERNOR THIS WEEK WON HER ELECTION ON THIS PROGRAM NOW SHE HAS THE OPPORTUNITY TO ENACT IT INTO LAW BUT WILL IT WORK THE ANSWER IS YES IT WILL WORK WHEN TAX RATES GO DOWN REVENUE GOES UP WHEN PUBLIC SECTOR GROWTH IS RESTRAINED PRIVATE SECTOR OPPORTUNITIES INCREASE AND EVERYONE IS HELPED THE POOR THE WEALTHY AND THE MIDDLE CLASS HOW DO WE KNOW BECAUSE SEVENTEEN YEARS AGO AS THE NEWLY ELECTED GOVERNOR IN THE NEIGHBORING STATE OF DELAWARE I PROPOSED AND ULTIMATELY SIGNED INTO LAW A PROGRAM OF TAX CUTS AND SPENDING RESTRAINTS EVEN MORE DRAMATIC THAN MRS. WHITMAN'S PROPOSALS SEVENTEEN YEARS OF EXPERIENCE DEMONSTRATE THAT THEY WORKED AND WORKED AND WORKED TO BORROW A PHRASE IT'S STILL GOING AS THE ACCOMPANYING GRAPH SHOWS SEE ACCOMPANYING ILLUSTRATION W. S. J. JANUARY NINETEENTH NINETEEN NINETY FOUR BETWEEN NINETEEN SEVENTY NINE AND NINETEEN EIGHTY EIGHT DELAWARE'S TOP INCOME TAX RATE WAS REDUCED TO SEVEN POINT SEVEN PERCENT FROM NINETEEN POINT EIGHT PERCENT A SIXTY PERCENT CUT IN RATES SINCE THE PROGRAM BEGAN PERSONAL INCOME TAX REVENUE HAS DOUBLED AND EMPLOYMENT HAS INCREASED THIRTY SIX PERCENT AT THE SAME TIME THE LOWEST INCOME ELEVEN PERCENT OF TAXPAYERS WERE REMOVED FROM THE TAX ROLLS WHAT THE GRAPH DOES NOT SHOW IS THAT WELFARE CASELOADS FELL BY FORTY PERCENT IN THE DECADE FOLLOWING THE FIRST TAX CUT THE STATE'S BOND RATING IN NINETEEN SEVENTY NINE THE LOWEST IN THE NATION ROSE SIX TIMES AND THE UNEMPLOYMENT RATE FELL TO TWO PERCENTAGE POINTS BELOW THE NATIONAL AVERAGE HAVING BEGUN TWO PERCENTAGE POINTS ABOVE IT IN NINETEEN SEVENTY SEVEN DELAWARE DESPERATELY NEEDED A NEW ECONOMIC POLICY FROM NINETEEN SEVENTY THROUGH NINETEEN SEVENTY SEVEN EMPLOYMENT GROWTH WAS SIXTY PERCENT SLOWER THAN WHAT IT WAS IN THE AVERAGE STATE PERSONAL INCOME GROWTH OVER THE SAME PERIOD LAGGED THE AVERAGE STATE BY THIRTEEN PERCENT AND SEVERAL MAJOR COMPANIES HEADQUARTERED IN DELAWARE THREATENED TO LEAVE SMALL BUSINESS FORMATION CONSTRUCTION AND HOUSING GROWTH WERE ALL SLUGGISH RELATIVE TO THE REST OF THE COUNTRY THE REASONS WERE OBVIOUS FROM NINETEEN SEVENTY TO NINETEEN SEVENTY SEVEN STATE SPENDING HAD GROWN BY ONE HUNDRED TEN PERCENT DOUBLE THE RATE OF INFLATION IN FIVE OF THE SEVEN YEARS BEFORE I TOOK OFFICE THE STATE'S BUDGETS SHOWED OPERATING DEFICITS AT THE END OF THE YEAR DELAWARE HAD BEGUN A SERIES OF ANNUAL BORROWINGS AGAINST ANTICIPATED TAX REVENUES FROM THE NEXT YEAR RESULTING IN THE HIGHEST PER CAPITA STATE DEBT BURDEN IN THE COUNTRY NEW JERSEY'S SITUATION IN NINETEEN NINETY FOUR IS SIMILAR TO THAT OF DELAWARE SEVENTEEN YEARS EARLIER OVER THE PAST THREE YEARS REAL PERSONAL INCOME HAS GROWN AT ONLY A ZERO POINT THREE PERCENT ANNUAL RATE REPRESENTING A STAGGERING TWENTY TWO BILLION DOLLAR LOSS AGAINST THE HISTORIC TREND LINE SINCE NINETEEN EIGHTY NINE THE STATE HAS EXPERIENCED A SEVEN POINT FIVE PERCENT RATE OF JOB DECLINE COMPARED WITH A THREE PERCENT JOBS INCREASE NATIONWIDE IN OTHER WORDS WHILE THE U. S. WAS PRODUCING THREE POINT TWO MILLION JOBS NEW JERSEY WAS LOSING TWO HUNDRED SEVENTY SEVEN THOUSAND NEW JERSEY'S BUDGET GREW TWENTY FIVE PERCENT IN THREE YEARS THREE TIMES THE INFLATION RATE GOVERNOR JIM FLORIO'S TWO POINT EIGHT BILLION DOLLAR TAX INCREASE MIRRORED DELAWARE'S EIGHTY PERCENT INCREASE IN THE TOP BRACKET INCOME TAX RATES IN THE EARLY NINETEEN SEVENTIES RESULTING IN THE HIGHEST INCOME TAX RATE IN THE NATION BUT INCOME TAX CUTS AND SPENDING RESTRAINTS WILL RAPIDLY TURN THE BLEAKEST OF ECONOMIC TIMES TOWARD PROSPERITY SINCE NINETEEN EIGHTY EMPLOYMENT IN DELAWARE'S PRIVATE SECTOR HAS GROWN SIXTY SEVEN PERCENT FASTER THAN THAT OF THE AVERAGE STATE AND ITS PERSONAL INCOME ADVANCED TWENTY TWO PERCENT MORE RAPIDLY THAN THE U. S. AVERAGE IN NINETEEN NINETY TWO DELAWARE'S POVERTY RATE WAS THE LOWEST OF ALL FIFTY STATES DELAWARE HAS ENJOYED A SURPLUS CASH POSITION FOR FIFTEEN CONSECUTIVE YEARS WERE THERE OTHER FACTORS INVOLVED YES THE DEMOCRAT CONTROLLED LEGISLATURE SUPPORTED THE ECONOMIC PROGRAM AND A SUBSEQUENT DEREGULATION OF THE FINANCIAL SERVICES INDUSTRY THAT BROUGHT THOUSANDS OF WELL PAYING NONPOLLUTING JOBS TO THE STATE BUT FIVE ACROSS THE BOARD TAX CUTS AND SPENDING RESTRAINTS SET THE COURSE AND LED THE STRONGEST ECONOMIC EXPANSION IN THE STATE'S MEMORY SO WILL MRS. WHITMAN'S ECONOMIC PROGRAM WORK OF COURSE IT WILL THE ISSUE IS NOT WHETHER IT WILL WORK BUT WHETHER REPUBLICAN LEGISLATORS WILL ENACT IT ECONOMICALLY IT IS A SLAM DUNK POLITICALLY WELL NOW IS THE TIME FOR NEW JERSEY REPUBLICANS TO STAND TALL MR. DU PONT GOVERNOR OF DELAWARE FROM NINETEEN SEVENTY SEVEN TO NINETEEN EIGHTY FIVE IS CHAIRMAN OF THE COMMITTEE FOR AMERICAN LEADERSHIP A NONPROFIT EDUCATIONAL ORGANIZATION COMMITTED TO FREE MARKET PRINCIPLES WYMAN GORDON COMPANY NORTH GRAFTON MASSACHUSETTS DAVID P. GRUBER PRESIDENT AND CHIEF OPERATING OFFICER OF THIS TRANSPORTATION AND DEFENSE EQUIPMENT MAKER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER IN HIS NEW POSITION MR. GRUBER FIFTY TWO YEARS OLD SUCCEEDS JOHN M. NELSON SIXTY TWO WHO REMAINS CHAIRMAN MR. GRUBER'S NEW APPOINTMENT IS EFFECTIVE IN APRIL FOLLOWING THE ANNUAL MEETING BEFORE JOINING WYMAN GORDON AS PRESIDENT AND CHIEF OPERATING OFFICER IN OCTOBER NINETEEN NINETY ONE MR. GRUBER WAS VICE PRESIDENT ADVANCED CERAMICS AT COMPAGNIE DE SAINT GOBAIN SLASH NORTON COMPANY WORCESTER MASSACHUSETTS THE BRITISH GOVERNMENT HAS DONE THE WORLD A FAVOR BY DEMONSTRATING HOW NOT TO CONDUCT A CAMPAIGN TO PROMOTE TRADITIONAL VALUES THE DISASTROUS BRITISH EFFORT BEGAN A FEW MONTHS AGO WHEN JOHN MAJOR AND HIS ADVISERS ATTEMPTED TO RESPOND TO POPULAR PERCEPTIONS OF A DECLINE IN THE NATION'S MORAL STANDARDS WITH SOME FANFARE THEY LAUNCHED A PROGRAM CALLED QUOTE BACK TO BASICS QUOTE AT THE SAME TIME THERE IS A SERIOUS DEBATE IN BRITAIN ABOUT THE EXPLOSION OF ILLEGITIMACY AND THE GROWTH OF THE UNDERCLASS THE DEBATE HAS ECHOES HERE IN AMERICA BUT AS OFTEN HAPPENS WITH PROJECTS IMAGINED BY POLITICIANS BRITAIN'S BACK TO BASICS PROGRAM WAS SO VAGUE THAT IT COULD BE WILLFULLY MISUNDERSTOOD BY THE OPPOSITION WITH THE LABOR PARTY MORIBUND THE REAL OPPOSITION IN BRITAIN IS THE MEDIA LED BY THE TRADITIONALLY TORY ORGANS WHEN JUNIOR MINISTER TIM YEO ADMITTED TO COMMITTING ADULTERY AND FATHERING AN ILLEGITIMATE CHILD MEDIA HYSTERIA WAS ALMOST INSTANTANEOUS THE MINISTER WAS FORCED TO RESIGN AMID ACCUSATIONS OF GOVERNMENT HYPOCRISY TRADITIONAL IN PUBLIC LIBERTINE IN PRIVATE SINCE THEN THE PRESS HAS SOUGHT EVER MORE CASES OF TORY PHILANDERING THE IMBROGLIO PASSED THE POINT OF ABSURDITY WITH THE CASE OF A MEMBER OF PARLIAMENT DAVID ASHBY MR. ASHBY AND A MALE FRIEND WERE TOURING RURAL FRANCE AND AT THE LAST MOMENT TOOK A HOTEL ROOM THAT HAD ONLY ONE LARGE BED WHICH THEY SHARED THIS SOMEHOW HIT THE FRONT PAGES AMID UNSUBSTANTIATED TALES OF GAY LOVE THE COMMON RESPONSE TO THIS FIASCO IS THAT PUBLIC LIVES AND PRIVATE LIVES SHOULD BE KEPT SEPARATE AND THAT GOVERNMENT SHOULD GET OUT OF THE MORALITY BUSINESS MANY PEOPLE HAVE CITED PRIME MINISTER HAROLD MACMILLAN'S ANSWER TO A QUESTION ABOUT MORAL VALUES HE TOLD THE QUESTIONER NOT TO BOTHER THE PRIME MINISTER BUT TO ASK A BISHOP THERE'S SOME WISDOM IN THIS VIEW BUT THE PROBLEM IS THAT WHEN A RADIO INTERVIEWER ASKS A CHURCH OF ENGLAND BISHOP A QUESTION ABOUT MORALITY HE OR SHE GETS AN ANSWER ON THE EVILS OF THIS OR THAT GOVERNMENT POLICY THE CHURCH OF ENGLAND IS NO LONGER THE MORAL GUIDEPOST FOR THE NATION ONE MAY WONDER IF CHURCHES IN THE U. S. HAVE SIMILARLY FRITTERED AWAY THEIR MORAL AUTHORITY INSTEAD THE STATE HAS LEGISLATED ON ALL MANNER OF PERSONAL BEHAVIOR THE STATE MAY BE RIGHT OR WRONG TO INTERVENE IN THESE MATTERS BUT IF IT IS GOING TO TAKE CONTROL IT HAS TO BEAR RESPONSIBILITY THE STATE IS NOW THE MORAL TONE SETTER AND MINISTERS ARE THEREFORE EXPECTED TO ACT WITH THE PROPRIETY THAT WAS DEMANDED OF BISHOPS A CENTURY AGO WE DOUBT THIS IS PROGRESS SO WE DO THINK PUBLIC OFFICIALS SHOULD BE HELD ACCOUNTABLE FOR THEIR CONDUCT AT THE SAME TIME A PURITANICAL OR RADICAL FEMINIST WITCH HUNT DOES NOT APPEAL NONETHELESS PRIME MINISTER MAJOR IS DRAWING THE WRONG LESSON HIS GOVERNMENT NOW SEEMS TO HAVE BEEN SCARED OFF ANY TALK OF MORAL STANDARDS BUT PUBLIC CONCERNS WON'T GO AWAY SO LONG AS CRIME INCREASES AND CHILDREN ARE ABANDONED THE EVIDENCE SHOWING THAT FAMILY BREAKDOWN CAN BE ASSOCIATED WITH TERRIBLE SOCIAL PROBLEMS IS TOO STRONG TO IGNORE THE BETTER COURSE IS EITHER FOR THE STATE TO GET OUT OF PERSONAL REFORM AND LEAVE THIS TO RELIGIOUS AND PHILANTHROPIC ENTITIES OR ELSE TO DEFINE HOW THE STATE CAN ENCOURAGE PEOPLE TO BEHAVE BETTER AND TO RECOGNIZE AND GET RID OF GOVERNMENT POLICIES THAT ENCOURAGE PEOPLE TO BEHAVE WORSE THE TREASURY PLANS TO PAY DOWN ONE HUNDRED TWENTY FIVE MILLION DOLLARS ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT TWENTY FIVE POINT TWO BILLION DOLLARS IN SHORT TERM BILLS MATURING BILLS OUTSTANDING TOTAL TWENTY FIVE POINT THREE TWO BILLION DOLLARS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN THIRTEEN WEEK BILLS CUSIP NINE ONE TWO SEVEN NINE FOUR K. THIRTY SEVEN MATURING ON APRIL TWENTY EIGHTH NINETEEN NINETY FOUR AND TWENTY SIX WEEK BILLS CUSIP NINE ONE TWO SEVEN NINE FOUR L. FIFTY ONE MATURING JULY TWENTY EIGHTH NINETEEN NINETY FOUR SYNOPTICS COMMUNICATIONS INCORPORATED SANTA CLARA CALIFORNIA SAID FOURTH QUARTER NET SOARED SIXTY FIVE PERCENT ON AN EIGHTY ONE PERCENT SURGE IN REVENUE BUT THE RESULTS WERE SLIGHTLY BELOW ANALYSTS' EXPECTATIONS NET INCOME FOR THE QUARTER WAS TWENTY THREE POINT EIGHT MILLION DOLLARS OR THIRTY FOUR CENTS A SHARE COMPARED WITH WALL STREET'S EXPECTATIONS OF THIRTY SIX CENTS A SHARE A YEAR EARLIER NET WAS SIXTEEN POINT NINE MILLION DOLLARS OR TWENTY FIVE CENTS A SHARE REVENUE WAS ONE HUNDRED EIGHTY EIGHT POINT THREE MILLION DOLLARS UP FROM ONE HUNDRED THIRTY POINT FIVE MILLION DOLLARS A YEAR EARLIER SYNOPTICS ATTRIBUTED THE GROWTH TO ITS QUOTE STRONG POSITION IN A FAST GROWING MARKET QUOTE IN A SIGN THAT GROWTH IS SLOWING FOR THE MAKER OF DATA SWITCHING DEVICES REVENUE ROSE SLIGHTLY FROM THE PREVIOUS QUARTER'S REVENUE OF ONE HUNDRED EIGHTY THREE POINT THREE MILLION DOLLARS WHAT'S MORE FOURTH QUARTER BACKLOG PLUNGED TO FORTY SIX MILLION DOLLARS FOR THE RECENT QUARTER FROM ONE HUNDRED EIGHTEEN MILLION DOLLARS A YEAR EARLIER MONTGOMERY SECURITIES ANALYST RICHARD KIMBALL SAID MR. KIMBALL ATTRIBUTED THE SLOWDOWN TO SYNOPTICS'S TRANSITION TO ITS NEW SYSTEM FIVE THOUSAND HUB PRODUCT WHICH IS NOW BEING SHIPPED WITH FEW FEATURES NEW PRODUCTS HAVE GOT TO SHIP MORE FULLY FEATURED BEFORE THEY GET REVENUE GROWTH HE SAID SPRINT CORPORATION SAID IT AGREED WITH R. P. TELEKOM S. A. TO DEVELOP A FIBER OPTIC NETWORK FOR LOCAL TELEPHONE AND CABLE TELEVISION SERVICES IN POLAND'S PILA AND KATOWICE DISTRICTS SPRINT A TELECOMMUNICATIONS COMPANY BASED IN KANSAS CITY MISSOURI SAID IT WILL INVEST ABOUT FIFTEEN MILLION DOLLARS TO OWN A TWENTY FIVE PERCENT EQUITY INTEREST IN THE NEW COMPANY R. P. TELEKOM A JOINT VENTURE OF POLISH AND WESTERN INVESTORS THAT DEVELOPS TELECOMMUNICATIONS PROJECTS IN POLAND WILL ALSO INVEST IN THE COMPANY AND CONTRIBUTE ITS MAJORITY OWNERSHIP INTEREST IN TWO LOCAL OPERATING COMPANIES TELEKOM PILA AND TELEKOM SILESIA THE REMAINING OWNERSHIP WILL BE HELD BY INVESTORS AND LOCAL INTERESTS SPRINT SAID TOTAL INVESTMENT IS ABOUT ONE HUNDRED TWENTY MILLION DOLLARS ORACLE CORPORATION POSTPONED AN ELABORATE PRESS EVENT TO UNVEIL NEW MULTIMEDIA SOFTWARE BECAUSE OF THE LOS ANGELES EARTHQUAKE THE COMPANY HAD ARRANGED LIVE VIDEO HOOKUPS TO BROADCAST THE EVENT TO NEW YORK WASHINGTON TOKYO AND LONDON FROM C. B. S. STUDIOS IN HOLLYWOOD BESIDES ORACLE EXECUTIVES PLANNED PARTICIPANTS WERE TO INCLUDE FORMER NEWSCASTER WALTER CRONKITE PUBLISHER MALCOLM FORBES JUNIOR AND RAYMOND SMITH CHIEF EXECUTIVE OFFICER OF BELL ATLANTIC CORPORATION ORACLE REPRESENTATIVES SAID THE QUAKE DIDN'T DAMAGE THE SET IT CONSTRUCTED AT C. B. S. AND COMPUTERS AT THE STUDIO APPEARED TO WORK NORMALLY ONCE ELECTRICAL POWER WAS RESTORED THE COMPANY NEVERTHELESS DECIDED TO POSTPONE THE EVENT OUT OF CONCERN FOR PARTICIPANTS' SAFETY AMID CONTINUING AFTERSHOCKS IN THE AREA AND BECAUSE OF TRANSPORTATION PROBLEMS IT EXPECTS TO SET A NEW DATE FOR THE EVENT IN ABOUT A WEEK THE CLINTON ADMINISTRATION ALTERED ITS NEARLY COMPLETE SUPERFUND LAW REVISION TO FURTHER REDUCE LIABILITY FOR INDIVIDUAL INSURANCE COMPANIES AND POLLUTING BUSINESSES UNDER THE ADMINISTRATION PLAN PROPERTY AND CASUALTY INSURERS WOULD PAY A NEW TAX TO HELP SETTLE LAWSUITS BROUGHT AGAINST INSURANCE COMPANIES BY BUSINESSES THAT DUMPED HAZARDOUS WASTES PRIOR TO NINETEEN EIGHTY SIX THE ADMINISTRATION PREVIOUSLY FAVORED USING THE FUNDS TO SETTLE LAWSUITS OVER WASTES DUMPED PRIOR TO NINETEEN EIGHTY THE CHANGE WAS MADE LARGELY TO ACCOMMODATE THE INSURANCE INDUSTRY INSURERS ARGUE IT IS DIFFICULT TO ASSIGN BLAME FOR WASTE DUMPED BEFORE NINETEEN EIGHTY SIX BECAUSE THE FEDERAL GOVERNMENT DIDN'T REQUIRE COMPANIES TO KEEP DETAILED RECORDS ON HAZARDOUSWASTE DUMPING UNTIL THEN THEY ALSO PREFER THE LATER DATE BECAUSE INSURANCE COMPANIES IN NINETEEN EIGHTY SIX STARTED WRITING BUSINESS POLICIES THAT EXPLICITLY OMITTED HAZARDOUS WASTE DUMPS THE ADMINISTRATION ORIGINALLY SOUGHT TO RAISE FIVE HUNDRED MILLION DOLLARS WITH THE NEW TAX BUT THE AMOUNT NOW IS LIKELIER TO BE SOMEWHERE BETWEEN FIVE HUNDRED MILLION DOLLARS AND ONE BILLION DOLLARS THE ADMINISTRATION EXPECTS TO SUBMIT ITS SUPERFUND PROPOSAL TO CONGRESS LATER THIS MONTH SEPARATELY THE REVEREND BEN CHAVIS EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE SAID HE HAS FORMED A COALITION OF BUSINESSES AND OTHER GROUPS BEHIND A PLAN TO SCRAP THE CURRENT SUPERFUND LIABILITY SCHEME HIS PLAN WOULD PAY FOR CLEANUPS WITH AS MUCH AS ONE POINT EIGHT BILLION DOLLARS IN NEW BROAD BASED BUSINESS TAXES PLUS UP TO ONE HUNDRED SEVENTY MILLION DOLLARS IN EXTRA SPENDING FROM GENERAL REVENUES THE PLAN WOULD DIVERT SOME SUPERFUND MONEY TO PROMOTE ECONOMIC DEVELOPMENT IN COMMUNITIES ABUTTING SUPERFUND SITES WHICH ARE OFTEN LOW INCOME AND MINORITY AMONG THE BACKERS FOR THE ALTERNATE SCHEME ARE AMERICAN INTERNATIONAL GROUP INCORPORATED TEXACO INCORPORATED SHELL OIL COMPANY PHILLIPS PETROLEUM COMPANY AND OLIN CORPORATION OFFICIALS FROM SEVERAL ENVIRONMENTAL GROUPS HAVE CRITICIZED MR. CHAVIS'S PLAN AS OVERLY GENEROUS TO POLLUTERS AND UNLIKELY TO WIN CONGRESSIONAL PASSAGE BECAUSE OF THE SIZABLE NEW TAXES HE PROPOSES BUT MR. CHAVIS CONTENDS THE CHANGES ARE NECESSARY TO SPEED SUPERFUND CLEANUPS AND HIS STATURE AS A CIVIL RIGHTS LEADER IS LIKELY TO LEND WEIGHT TO INDUSTRY GROUPS SEEKING TO REDUCE THE LIABILITY OF POLLUTERS MORE THAN THE ADMINISTRATION PROPOSES AT A NEWS CONFERENCE MR. CHAVIS WHO MET WITH PRESIDENT CLINTON ON THE MATTER LAST MONTH TERMED THE CURRENT ADMINISTRATION PLAN QUOTE INADEQUATE QUOTE HE SAID HE WOULD MEET WITH WHITE HOUSE OFFICIALS ABOUT THE N. DOUBLE A. C. P. PLAN LATER THIS WEEK THE N. DOUBLE A. C. P. PLAN JOINS AN EVER GROWING NUMBER OF RECENT AND OFTEN CONFLICTING CONSENSUS RECOMMENDATIONS ABOUT THE SUPERFUND FROM PRIVATE GROUPS THAT REPRESENT BOTH BUSINESSES AND ENVIRONMENTALISTS YET ANOTHER SUCH PROPOSAL FROM CLEAN SITES A NONPROFIT COMPANY THAT PROVIDES VARIOUS SERVICES TO HAZARDOUS WASTE SITES AND WHOSE BOARD INCLUDES FORMER ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATORS WILLIAM REILLY AND RUSSELL TRAIN IS EXPECTED TO BE RELEASED SHORTLY THE PLAN WILL CALL FOR ALLOWING STATES TO ASSUME CLEANUP RESPONSIBILITY FOR INDIVIDUAL SUPERFUND SITES THE SECURITIES AND EXCHANGE COMMISSION ACCUSED THE FORMER GENERAL COUNSEL OF BROWNING FERRIS INDUSTRIES INCORPORATED OF INSIDER TRADING BY SELLING SHARES IN THE GARBAGE DISPOSAL COMPANY BEFORE IT MADE A DISAPPOINTING EARNINGS PROJECTION THE S. E. C. SAID HOWARD S. HOOVER JUNIOR QUOTE WAS UNJUSTLY ENRICHED BY AT LEAST NINETY SEVEN THOUSAND FIVE HUNDRED DOLLARS QUOTE BY SELLING FIFTEEN THOUSAND SHARES OF BROWNING FERRIS STOCK ON AUGUST TWENTY THIRD NINETEEN NINETY ONE ONE WEEK BEFORE THE COMPANY ANNOUNCED LOWER REVISED EARNINGS PROJECTIONS THE COMMISSION NOTED IN THE SUIT THAT AS GENERAL COUNSEL MR. HOOVER WAS RESPONSIBLE FOR FORMULATING CORPORATE POLICIES AND PROCEDURES TO ENSURE COMPLIANCE ON INSIDER TRADING LAWS IT IS SEEKING AN ORDER FOR MR. HOOVER TO PAY BACK THE NINETY SEVEN THOUSAND FIVE HUNDRED DOLLARS PLUS A CIVIL PENALTY MR. HOOVER WHO WAS FIRED BY BROWNING FERRIS WITHIN WEEKS AFTER THE SALE WAS REVEALED IN SEPTEMBER NINETEEN NINETY ONE WASN'T AVAILABLE FOR COMMENT HIS WASHINGTON LAWYER MICHAEL R. KLEIN SAID IN A STATEMENT THAT THE S. E. C.'S DECISION TO SUE IS INEXPLICABLE HE SAID HIS CLIENT'S CONDUCT WAS AND WILL BE SHOWN TO HAVE BEEN ABSOLUTELY PROPER MR. HOOVER KNEW OF NO UNDISCLOSED MATERIAL INFORMATION WHEN HE SOLD HIS BFI SHARES THE S. E. C. ALLEGES OTHERWISE IN A CIVIL COMPLAINT FILED JANUARY TENTH AGAINST MR. HOOVER IN U. S. DISTRICT COURT IN HOUSTON THE SUIT'S EXISTENCE WAS REVEALED BY THE COMMISSION YESTERDAY ACCORDING TO THE SUIT THE BROWNING FERRIS GENERAL COUNSEL PARTICIPATED IN AN INTERNAL MEETING AND LATER DISCUSSIONS ABOUT AN EXPECTED SHORTFALL IN THE COMPANY'S EARNINGS THE SUIT SAYS THE COMPANY'S ASSISTANT COMPTROLLER ADVISED MR. HOOVER ON OR ABOUT AUGUST TWENTY FIRST THAT PROJECTED EARNINGS WOULD HAVE TO BE REVISED DOWNWARD AND THAT THE ASSISTANT COMPTROLLER SOUGHT MR. HOOVER'S ADVICE ON WHAT KIND OF PUBLIC DISCLOSURE SHOULD BE MADE AS A RESULT THE S. E. C. SAID MR. HOOVER KNEW BEFORE HE SOLD WHAT AMOUNTED TO HALF HIS BROWNING FERRIS SHARES QUOTE THAT BFI INTENDED TO PUBLICLY CORRECT ITS PRIOR EARNINGS PROJECTIONS QUOTE WHEN BROWNING FERRIS DID DISCLOSE LOWER PROFIT EXPECTATIONS A WEEK AFTER MR. HOOVER'S AUGUST TWENTY THIRD STOCK SALE THE COMPANY'S SHARES FELL FOUR DOLLARS TO TWENTY ONE DOLLARS AND SEVENTY FIVE CENTS THE S. E. C. TOOK NO ACTION AGAINST ANOTHER FORMER BROWNING FERRIS EXECUTIVE WHO SOLD ABOUT HALF HIS BROWNING FERRIS SHARES ON AUGUST TWELFTH NINETEEN NINETY ONE AND WAS FIRED AT THE SAME TIME AS MR. HOOVER THE EXECUTIVE R. JOHN STANTON JUNIOR WHO HAD BEEN CHIEF FINANCIAL OFFICER HAS SAID HE SOLD THE SHARES BECAUSE IT WASN'T VERY PRUDENT TO HAVE THAT MANY EGGS IN ONE BASKET THE S. E. C. MIGHT HAVE HAD A DIFFICULT CASE AGAINST MR. STANTON HE SOLD HIS SHARES THE SAME DAY THE COMPANY MADE A PUBLIC FILING WITH THE COMMISSION AND BEFORE SOME OF THE ALLEGED DISCUSSIONS ABOUT THE SUBSEQUENT EARNINGS SHORTFALL MR. STANTON SAID FROM HIS HOME IN HOUSTON THAT THE S. E. C. HAS TOLD HIS LAWYER IT ISN'T GOING TO FILE A COMPLAINT AGAINST HIM MR. STANTON SAYS HE VIEWS THAT AS A VINDICATION OF MY POSITION A BROWNING FERRIS SPOKESMAN SAID THAT THE HOUSTON BASED COMPANY COOPERATED WITH THE S. E. C.'S INVESTIGATION BUT THAT IT HAD NO FURTHER COMMENT JOHN P. MCDONOUGH WAS NAMED TO THE NEW POSITION OF CHIEF OPERATING OFFICER OF THIS SOFTWARE DEVELOPMENT TOOLS SUPPLIER MR. MCDONOUGH WHO JOINED THE COMPANY IN NINETEEN EIGHTY FIVE PREVIOUSLY WAS SENIOR VICE PRESIDENT OF OPERATIONS YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE GENERALLY FLAT IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIX MONTH SMALL DENOMINATION QUOTE SAVINGS QUOTE C. D.S EASED TO TWO POINT SEVEN THREE PERCENT FROM TWO POINT SEVEN FOUR PERCENT ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVE YEAR SAVINGS C. D.S SLID TO FOUR POINT FOUR FIVE PERCENT FROM FOUR POINT FOUR SIX PERCENT THE WILMINGTON DELAWARE INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIX MONTH BROKER SOLD C. D.S REMAINED AT THREE POINT ONE TWO PERCENT WHILE THE AVERAGE YIELD ON FIVE YEAR BROKER SOLD C. D.S STAYED AT FOUR POINT FOUR EIGHT PERCENT THE SURVEY SAID ON LARGE DENOMINATION OR JUMBO C. D.S WHICH TYPICALLY REQUIRE DEPOSITS OF NINETY FIVE THOUSAND DOLLARS AND MORE THE AVERAGE YIELD ON A SIX MONTH CERTIFICATE SLIPPED TO TWO POINT SEVEN EIGHT PERCENT FROM TWO POINT SEVEN NINE PERCENT ON FIVE YEAR JUMBOS THE AVERAGE INCHED DOWN TO FOUR POINT SIX THREE PERCENT FROM FOUR POINT SIX SIX PERCENT ACCORDING TO BANXQUOTE NORTHWEST AIRLINES CORPORATION FILED FOR AN INITIAL PUBLIC OFFERING OF TWENTY THREE MILLION COMMON SHARES AT A PRICE OF AS MUCH AS TWENTY DOLLARS APIECE OR A TOTAL OF FOUR HUNDRED SIXTY MILLION DOLLARS THE OFFERING WOULD RETURN NORTHWEST THE NATION'S FOURTH LARGEST AIRLINE TO THE PUBLIC MARKETPLACE FOR THE FIRST TIME SINCE NINETEEN EIGHTY NINE WHEN IT WAS TAKEN PRIVATE IN A THREE POINT SIX BILLION DOLLAR LEVERAGED BUYOUT A PRELIMINARY PROSPECTUS FOR THE OFFER PROVIDES THE FIRST DETAILED LOOK AT HOW NORTHWEST HAS REDUCED STAFFING DEFERRED SIZABLE AIRCRAFT ORDERS AND SLIMMED DOWN HUBS IN THE FOUR YEARS SINCE IT DROPPED OFF INVESTOR RADAR SCREENS THE OFFERING PLAN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION COMES AFTER A TUMULTUOUS NINETEEN NINETY THREE FOR THE AIRLINE FACING A CASH SQUEEZE THE COMPANY NARROWLY AVERTED A BANKRUPTCY LAW FILING LAST SUMMER WHEN EMPLOYEES AGREED TO EIGHT HUNDRED EIGHTY SIX MILLION DOLLARS IN WAGE AND WORK RULE CONCESSIONS IN EXCHANGE FOR EQUITY IN THE COMPANY PROCEEDS FROM THE OFFERING PLANNED FOR THE FIRST QUARTER WILL BE USED TO HELP REDUCE NORTHWEST'S DEBT LOAD AS OF SEPTEMBER THIRTIETH NINETEEN NINETY THREE NORTHWEST'S LONG TERM DEBT TOTALED FOUR POINT FIVE THREE BILLION DOLLARS IN THE PAST TWO YEARS NORTHWEST REDUCED ITS STAFF BY ABOUT FOUR THOUSAND THREE HUNDRED POSITIONS INCLUDING ONE THOUSAND TWO HUNDRED MANAGEMENT JOBS THE FILING SAID FOR AN ANNUAL SAVING OF ABOUT ONE HUNDRED FORTY TWO MILLION DOLLARS AT THE END OF SEPTEMBER NORTHWEST HAD FORTY THREE THOUSAND ONE HUNDRED FORTY TWO EMPLOYEES LIKE OTHER MAJOR AIRLINES NORTHWEST HAS BEEN SCALING BACK ITS ONCE AMBITIOUS AIRCRAFT PURCHASE PLANS SINCE LATE NINETEEN NINETY TWO NORTHWEST SAID IT HAS CANCELED FIRM ORDERS FOR FOUR BILLION DOLLARS IN NEW AIRCRAFT AND DEFERRED DELIVERIES BY AN AVERAGE OF THREE AND ONE HALF YEARS ON THREE POINT EIGHT BILLION DOLLARS OF NEW AIRCRAFT NORTHWEST SAID THAT IN THE MEANTIME IT IS CONSIDERING A MAJOR REFURBISHING PROGRAM OF MOST OF ITS D. C. NINE PLANES WHICH COULD COST ABOUT ONE HUNDRED FIFTY MILLION DOLLARS WHILE THAT WOULD BE LESS COSTLY THAN BUYING NEW AIRCRAFT THE COMPANY COULD SUFFER A COMPETITIVE DISADVANTAGE BECAUSE IT WOULD STILL BE FLYING OLDER PLANES THE FILING NOTES THAT IF NORTHWEST PROCEEDS WITH THE REFURBISHING PROGRAM THE AGE OF ITS FLEET WILL BE SOMEWHAT HIGHER THAN INDUSTRY AVERAGES NORTHWEST ALSO SAID THAT SINCE NINETEEN NINETY ONE IT HAS ELIMINATED UNPROFITABLE MINI HUBS AT MILWAUKEE AND AT WASHINGTON'S NATIONAL AIRPORT MOVING PLANES TO BEEF UP SCHEDULES AT ITS BIG HUBS AT MINNEAPOLIS SLASH SAINT PAUL AND DETROIT NORTHWEST SAID THAT IT PLANS A BIG EXPANSION OF JOINT OPERATIONS WITH K. L. M. ROYAL DUTCH AIRLINES WHICH HOLDS A SEVEN POINT FIVE PERCENT STAKE IN NORTHWEST THE TWO AIRLINES HAVE JOINT MARKETING AGREEMENTS IN SEVENTEEN CITIES IN EUROPE AND FORTY FOUR CITIES IN THE U. S. AND THIS YEAR THE FILING SAID THEY PLAN TO ADD ONE HUNDRED CITIES SUBJECT TO GOVERNMENT APPROVALS THE TWO AIRLINES ARE ALSO CONSIDERING A FURTHER CONSOLIDATION OF THEIR OPERATIONS INCLUDING A POSSIBLE MERGER OF THEIR CARGO BUSINESSES IN THE PROSPECTUS NORTHWEST SAID SUCH A COMBINATION WOULD CREATE THE WORLD'S SECOND LARGEST CARGO COMPANY ACCORDING TO THE FILING THE ORIGINAL INVESTORS IN THE NINETEEN EIGHTY NINE LEVERAGED BUYOUT OF NORTHWEST WOULD HOLD ABOUT FIFTY TWO PERCENT OF THE VOTING EQUITY AND ABOUT FIFTY SEVEN PERCENT OF THE COMMON EQUITY OF THE AIRLINE ONCE THE OFFERING IS COMPLETED NONE OF THE ORIGINAL INVESTORS ARE SELLING ANY SHARES IN THE OFFERING THE FILING SAID NORTHWEST AIRLINES CORPORATION THE PARENT OF THE AIRLINE WAS FORMERLY KNOWN AS WINGS HOLDINGS INCORPORATED EARTHQUAKE VICTIMS DON'T HAVE TO WAIT UNTIL NEXT YEAR TO DEDUCT LOSSES BECAUSE PRESIDENT CLINTON HAS SIGNED A FEDERAL DECLARATION OF DISASTER FOR SOUTHERN CALIFORNIA VICTIMS HAVE AN UNUSUAL CHOICE USUALLY CASUALTY LOSSES MAY BE DEDUCTED ONLY IN THE YEAR THEY OCCUR BUT ONCE THE PRESIDENT DECLARES A DISASTER AREA VICTIMS MAY DEDUCT THEIR LOSSES IN THE YEAR THE DISASTER HIT OR IN THE PRECEDING YEAR THUS QUAKE VICTIMS MAY DEDUCT CASUALTY LOSSES FOR THE NINETEEN NINETY THREE TAX YEAR SAYS SIDNEY KESS A NEW YORK LAWYER AND ACCOUNTANT BUT SOME VICTIMS MIGHT BE BETTER OFF WAITING UNTIL NEXT YEAR ANYWAY HE SAYS THE ANSWER HINGES ON HOW MUCH INCOME THEY EXPECT IN NINETEEN NINETY FOUR HOW MUCH THEY EARNED IN NINETEEN NINETY THREE AND THEIR TAX BRACKET FOR BOTH YEARS HE SAYS PERSONAL CASUALTY LOSSES ARE DEDUCTIBLE AFTER SUBTRACTING INSURANCE PROCEEDS AND A ONE HUNDRED DOLLAR THRESHOLD FOR EACH CASUALTY ONLY TO THE EXTENT THAT THEY EXCEED TEN PERCENT OF ADJUSTED GROSS INCOME THE I. R. S. IS EXPECTED TO WAIVE PENALTIES ON VICTIMS WHO ARE LATE WITH ANY FEDERAL TAX FILINGS TWO WORDS LEAD TO A COURTROOM BATTLE BETWEEN A TAX PROTESTER AND THE I. R. S. DO YOU HAVE A RIGHT TO PROTEST WHEN FILING YOUR FEDERAL TAX RETURN THAT WAS THE QUESTION IN A RECENT CASE PITTING LAWRENCE P. MCCORMICK OF BROOKLYN N. Y. AGAINST THE I. R. S. MR. MCCORMICK FILED HIS NINETEEN NINETY ONE RETURN ON APRIL FIFTEENTH NINETEEN NINETY TWO BENEATH HIS SIGNATURE HE WROTE QUOTE UNDER PROTEST QUOTE THE I. R. S. REFUSED TO ACCEPT THE RETURN AND CHARGED HIM PENALTIES FOR A FRIVOLOUS FILING AND A LATE RETURN BUT U. S. DISTRICT COURT JUDGE JACK B. WEINSTEIN SIDED WITH MR. MCCORMICK A TAXPAYER NEED NOT SUFFER IN SILENT ACQUIESCENCE TO A PERCEIVED INJUSTICE THE JUDGE WROTE MR. MCCORMICK DIDN'T CHANGE THE MEANING OF ANYTHING ON THE RETURN BY ADDING THOSE TWO WORDS OF PROTEST INSTEAD MR. MCCORMICK PROPERLY EXERCISED HIS FIRST AMENDMENT RIGHT TO PROTEST WHILE STILL COMPLYING WITH HIS OBLIGATION TO FILE A TIMELY TAX RETURN THE JUDGE SAID A PROTEST IS AN EXPRESSION OF GRIEVANCE SEEKING REDRESS THAT THE INTERNAL REVENUE SERVICE MAY NOT THROTTLE OR MUTE BY THREATS OF PENALTIES DECLARATION OF DEPENDENTS THE VALUE OF PERSONAL EXEMPTIONS HAS SHRUNK TAXPAYERS WITH CHILDREN AND OTHER DEPENDENTS DO NOT GET NEARLY AS BIG A TAX BREAK AS THEY DID SEVERAL DECADES AGO SAYS EUGENE STEUERLE SENIOR FELLOW AT THE URBAN INSTITUTE IN WASHINGTON THE INCREASE IN TAX ON HOUSEHOLDS WITH DEPENDENTS REPRESENTS BY FAR ONE OF THE MOST FUNDAMENTAL TAX CHANGES OF THE POSTWAR ERA HE WRITES IN TAX NOTES A WEEKLY PUBLICATION IF THE EXEMPTION HAD BEEN ADJUSTED FOR BOTH INFLATION AND REAL GROWTH IN INCOME SINCE NINETEEN FORTY EIGHT IT WOULD HAVE RISEN TO EIGHT THOUSAND SIX HUNDRED FIFTY TWO DOLLARS IN NINETEEN NINETY THREE MR. STEUERLE SAYS THE ACTUAL AMOUNT FOR NINETEEN NINETY THREE WAS TWO THOUSAND THREE HUNDRED FIFTY DOLLARS HE NOTES THAT THE AMOUNT OF THE EXEMPTION HAS BEEN TIED TO THE COST OF LIVING FOR ONLY ABOUT A DECADE AND WAS INCREASED IN THE NINETEEN EIGHTY SIX LAW HE FAVORS INCREASING CHILD ALLOWANCES OR CREDITS TO MAKE UP FOR THIS PAST DECLINE AND TO REPLACE CERTAIN WELFARE PAYMENTS THE MAXIMUM AMOUNT YOU MAY CONTRIBUTE TO YOUR TAX DEFERRED FOUR HUNDRED ONE K. RETIREMENT PLAN THIS YEAR RISES TO NINE THOUSAND TWO HUNDRED FORTY DOLLARS FROM EIGHT THOUSAND NINE HUNDRED NINETY FOUR DOLLARS LAST YEAR I. R. S. OFFICIALS SAY THE HIGHER NINETEEN NINETY FOUR LEVEL REFLECTS ANNUAL COST OF LIVING ADJUSTMENTS REQUIRED BY LAW HIGH INCOME TAXPAYERS TAKE NOTE I. R. S. FORM EIGHT THOUSAND EIGHT HUNDRED FORTY ONE NOW IS AVAILABLE IT SHOWS HOW TO TAKE ADVANTAGE OF A PROVISION IN THE NINETEEN NINETY THREE TAX LAW ALLOWING THOSE HIT BY THE TWO NEW HIGHER INCOME TAX RATES OF THIRTY SIX PERCENT AND THIRTY NINE POINT SIX PERCENT TO SPREAD OUT PAYMENT OF THEIR HIGHER TAXES OVER THREE YEARS WE SHOULD ALL BE SO LUCKY THE AMERICAN SOCIETY FOR PAYROLL MANAGEMENT COMPLAINS TO THE I. R. S. THAT ONE BOX ON NINETEEN NINETY THREE'S W. TWO FORM DOESN'T LEAVE ROOM TO TYPE IN INCOME OF ONE MILLION DOLLARS OR MORE THE SOCIETY WARNS MEMBERS TO USE TYPEWRITERS THAT TYPE TWELVE CHARACTERS PER INCH ON THE FORM THIS COULD AFFECT A LOT OF PEOPLE ON WALL STREET A SPOKESMAN EXPLAINED THE I. R. S. IS LOOKING INTO IT DEFERRED PAY PLANS MAY BE MORE ATTRACTIVE BECAUSE OF A RECENT DECISION ALBERTSON'S INCORPORATED A LARGE FOOD AND DRUGSTORE CHAIN BASED IN BOISE IDAHO RECENTLY WON PART OF A U. S. APPEALS COURT CASE THAT QUOTE COULD CHANGE THE WAY MOST EMPLOYERS HANDLE THEIR DEFERRED COMPENSATION PLANS FOR TAX PURPOSES QUOTE SAYS LAURIE KEENAN A TAX LAWYER AT IVINS PHILLIPS AND BARKER IN WASHINGTON ALBERTSON'S AGREED TO DEFER CERTAIN PAYMENTS TO SEVERAL OF ITS TOP EXECUTIVES AND AN OUTSIDE DIRECTOR THE COMPANY ALSO PROMISED TO PAY INTEREST ON THOSE DEFERRED PAYMENTS AND IT DEDUCTED THE INTEREST EACH YEAR THE I. R. S. CHALLENGED THE DEDUCTIONS AND WON IN TAX COURT BUT NOW AN APPEALS COURT HAS RULED THE COMPANY MAY DEDUCT THE INTEREST CURRENTLY EVEN THOUGH IT WON'T PAY IT FOR YEARS TO COME THIS IS A GROUNDBREAKING DECISION SAYS EDWARD J. ABAHOONIE OF COOPERS AND LYBRAND JERROLD S. GATTEGNO OF DELOITTE AND TOUCHE SAYS THE RULING THAT A COMPANY CAN GET AN INTEREST DEDUCTION BEFORE THE INDIVIDUAL RECEIVES THE INCOME IS PRETTY MONUMENTAL THE I. R. S. HASN'T SAID YET IF IT WILL APPEAL OR CHALLENGE IT IN OTHER AREAS BRIEFS A NEW TAX GUIDE FOR JOURNALISTS BY C. C. H. INCORPORATED OF RIVERWOODS ILLINOIS INCLUDES DETAILS ON STRIKE BENEFITS PARKING TICKETS BRIBES AND KICKBACKS A NATURAL VILLAIN A PROFESSIONAL WRESTLER WHO TOTES A BRIEFCASE CALLS HIMSELF I. R. S. WHATEVER DEPRIVATIONS LOS ANGELES RESIDENTS MAY FEEL AS THEY RECOVER FROM THIS WEEK'S EARTHQUAKE THEY WON'T SUFFER FROM ANY SHORTAGE OF CLINTON ADMINISTRATION OFFICIALS OFFERING ASSISTANCE PRESIDENT CLINTON HIMSELF CLIMBS ABOARD AIR FORCE ONE TODAY TO HEAD TO LOS ANGELES TO INSPECT THE EARTHQUAKE DAMAGE BUT HE'LL ONLY BE JOINING A GROWING CROWD OF HIS AIDES ALREADY ON HAND TO HELP TWO CABINET MEMBERS TRANSPORTATION SECRETARY FEDERICO PENA AND HOUSING AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS FLEW TO LOS ANGELES MONDAY ALSO DISPATCHED WERE HIGHWAY ADMINISTRATOR RODNEY SLATER AND FEDERAL AVIATION ADMINISTRATOR DAVID HINSON A SENIOR WHITE HOUSE AIDE AND A TOP ASSISTANT TO COMMERCE SECRETARY RON BROWN WHO HAS SPEARHEADED CONTINUING ADMINISTRATION EFFORTS TO HELP CALIFORNIA'S WOBBLY ECONOMY ALSO ARE ON HAND SOME TWO THOUSAND FEDERAL EMPLOYEES ALREADY ARE WORKING ON THE RELIEF EFFORT AND FEDERAL ASSISTANCE CHECKS ARE EXPECTED TO START MOVING TO LOS ANGELES RESIDENTS IN FIVE DAYS THIS INSTANT ATTENTION SAYS SOMETHING ABOUT THE GRAVE PROBLEMS SOUTHERN CALIFORNIA NOW FACES IN THE EARTHQUAKE'S AFTERMATH BUT IT ALSO UNDERSCORES AN IMPORTANT POLITICAL FACT OF LIFE IN MANY WAYS CALIFORNIA IS THE MOST IMPORTANT STATE IN THE UNION TO THE CLINTON WHITE HOUSE AND IT SIMPLY CAN'T AFFORD TO DROP THE BALL ON EARTHQUAKE DAMAGE RELIEF MR. CLINTON WAS THE FIRST DEMOCRAT IN TWENTY EIGHT YEARS TO CARRY CALIFORNIA IN A PRESIDENTIAL ELECTION AND HOLDING ONTO THE NATION'S MOST POPULOUS STATE IS CENTRAL TO DEMOCRATIC STRATEGIES FOR SECURING A NEW LONG TERM BASE OF SUPPORT IN THE WEST LONG BEFORE THE EARTHQUAKE HIT LOS ANGELES THE ADMINISTRATION HAD ASSIGNED A TEAM OF OFFICIALS TO LOOK FOR WAYS TO HELP THE STATE'S ECONOMY RECOVER FROM DEFENSE SPENDING CUTBACKS AND A LONG LASTING RECESSION OFFICIALS FROM SIX FEDERAL DEPARTMENTS AND AGENCIES MEET DAILY TO DISCUSS HELPING CALIFORNIA'S ECONOMY AND AMONG OTHER THINGS THEY HAVE HELPED SPEED DISBURSEMENT OF FUNDS TO HELP CONVERT CALIFORNIA'S DEFENSE INDUSTRY TO NONDEFENSE APPLICATIONS IN ADDITION TWO FULL TIME COMMERCE DEPARTMENT OFFICIALS HAVE BEEN STATIONED IN CALIFORNIA TO LOOK FOR WAYS TO HELP NOW ADMINISTRATION OFFICIALS ARGUE THAT THE NETWORK OF OFFICIALS FOCUSING ON CALIFORNIA SHOULD HELP IT RESPOND MORE QUICKLY TO THE NEW DISASTER QUOTE THE MOST IMPORTANT THING IS THAT THERE IS A MECHANISM NOW QUOTE COMMERCE SECRETARY BROWN SAID IN AN INTERVIEW THERE IS A MECHANISM FOR FEELING THE PULSE MR. BROWN ESTIMATED HE HAS MADE A DOZEN TRIPS TO CALIFORNIA IN THE PAST YEAR AND MR. CLINTON HIMSELF HAS TRAVELED THERE EIGHT TIMES AND NOW THAT DISASTER HAS STRUCK LOS ANGELES AGAIN THE ADMINISTRATION HAS NO INTENTION OF REPEATING WHAT THEY PERCEIVED AS A MISTAKE MADE BY PRESIDENT BUSH IN FAILING TO GO TO THE CITY QUICKLY AFTER RIOTS THERE IN NINETEEN NINETY TWO OF COURSE RESPONDING TO THE EARTHQUAKE IS AN EQUALLY BIG CHALLENGE FOR TWO REPUBLICANS LOS ANGELES MAYOR RICHARD RIORDAN WHO TOOK OFFICE LAST SUMMER AND CALIFORNIA GOVERNOR PETE WILSON WHO FACES A TOUGH RE ELECTION CAMPAIGN THIS YEAR IRONICALLY MANY POLITICAL ANALYSTS THINK THAT IF GOVERNOR WILSON MOUNTS A STRONG AND SUCCESSFUL RE ELECTION CAMPAIGN THIS YEAR HE WILL BE IN A POSITION TO CHALLENGE MR. CLINTON IN THE NINETEEN NINETY SIX PRESIDENTIAL RACE BUT FOR NOW THE TWO POTENTIAL ADVERSARIES WILL BE FORCED TO WORK TOGETHER AND THE STAKES ARE SO HIGH THAT THERE SEEMS LITTLE LIKELIHOOD OF PARTISAN BICKERING OVER THE EFFORT TO HELP LOS ANGELES RECOVER FROM THE EARTHQUAKE ALL THE FEDERAL AGENCIES ARE STANDING READY TO HELP SAID RICHARD KRIMM THE FEDERAL EMERGENCY MANAGEMENT AGENCY'S SENIOR DISASTER RESPONSE OFFICIAL WE'RE JUST WAITING FOR REQUESTS TO COME IN FROM THE STATE MR. KRIMM SAYS THAT FOR NOW F. E. M. A. IS FINANCIALLY ABLE TO HANDLE THE DISASTER NOTING THAT A FEDERAL DISASTER RELIEF FUND HAS ONE POINT FIVE BILLION DOLLARS AVAILABLE BUT HE ALSO SAID F. E. M. A. MAY HAVE TO ASK FOR SUPPLEMENTAL SPENDING ALREADY F. E. M. A. EMPLOYEES ARE OPERATING TELEREGISTRATION CENTERS WHICH LOS ANGELES AREA RESIDENTS CAN CALL TO REQUEST GRANTS OF AS MUCH AS TWELVE THOUSAND TWO HUNDRED DOLLARS FOR CLOTHING AND FOOD IF F. E. M. A. DOES MANAGE TO START ISSUING CHECKS WITHIN FIVE DAYS THAT WOULD BE ABOUT TWICE AS FAST AS IT DID AFTER HURRICANE HUGO IN SOUTH CAROLINA IN NINETEEN EIGHTY NINE F. E. M. A. ALSO HAS MOBILIZED FOUR SEARCH AND RESCUE TEAMS FROM THE MIAMI SEATTLE PHOENIX AND WASHINGTON D. C. AREAS BUT F. E. M. A. OFFICIALS SAID YESTERDAY THAT CALIFORNIA SEEMS TO BE DOING FINE WITH ITS OWN EIGHT TEAMS SO TWO OF THE FEDERAL TEAMS HAVEN'T DEPARTED FOR CALIFORNIA AND THE OTHER TWO ARE IN THE STATE AWAITING ASSIGNMENTS THE KEY TO LOS ANGELES DISASTER RELIEF MAY LIE IN THE ABILITY OF THE STATE AND FEDERAL GOVERNMENTS TO MOVE RAPIDLY IN GETTING THE AREA'S VITAL HIGHWAYS REBUILT THE TRANSPORTATION DEPARTMENT HAS ORDERED HIGHWAY ENGINEERS FROM OTHER PARTS OF THE COUNTRY TO LOS ANGELES TO INSPECT FREEWAYS THERE AREN'T ANY RELIABLE HIGHWAY DAMAGE ESTIMATES YET OVERPASSES ON AT LEAST THREE FREEWAYS HAVE COLLAPSED THOUGH AND AN AIDE TO GOVERNOR WILSON NOTED THAT AFTERSHOCKS WERE CONTINUING TO THREATEN BRIDGES YESTERDAY AFTERNOON REPAIRING HIGHWAYS IS CERTAIN TO BE EXPENSIVE ALMOST ONE BILLION DOLLARS IN FEDERAL FUNDS HAVE BEEN SPENT REBUILDING HIGHWAYS DAMAGED IN THE NINETEEN EIGHTY NINE EARTHQUAKE IN THE SAN FRANCISCO AREA AND CONSTRUCTION IS CONTINUING FOR NOW THE TRANSPORTATION DEPARTMENT HAS ABOUT FORTY MILLION DOLLARS IN EMERGENCY FUNDS THAT COULD GO TOWARD HIGHWAY RECONSTRUCTION IN LOS ANGELES AND THE STATE ALSO COULD BORROW ABOUT ONE HUNDRED MILLION DOLLARS AGAINST INTERSTATE HIGHWAY FUNDS THAT VARIOUS STATES HAVE LEFT UNSPENT BEYOND THAT PRESIDENT CLINTON WILL HAVE TO ASK CONGRESS FOR SUPPLEMENTAL SPENDING AND THAT WILL POSE TRICKY POLITICAL PROBLEMS WHILE MR. CLINTON COULD SEEK AN EXEMPTION FROM BUDGET CAPS ON DOMESTIC SPENDING AS HE DID WITH MIDWEST FLOOD RELIEF LAST YEAR THAT WOULD MEAN THAT SPENDING ON CALIFORNIA'S QUAKE RELIEF WOULD INCREASE THE DEFICIT ON THE OTHER HAND SHIFTING FUNDS FROM OTHER STATES' PROGRAMS TO STAY WITHIN THE BUDGET CAPS COULD ANGER THE OTHER STATES MANY OF WHICH ARE ALREADY SEEKING TO INCREASE THEIR SHARE OF TRANSPORTATION OUTLAYS EVEN BEFORE THE EARTHQUAKE CALIFORNIA OFFICIALS WERE STRUGGLING WITH SEVERE BUDGET CONSTRAINTS BECAUSE OF THE STATE'S ECONOMIC PROBLEMS AS A RESULT THEY SAY IT'S PARTICULARLY IMPORTANT TO THEM THAT FULL FEDERAL COVERAGE OF HIGHWAY REBUILDING COSTS BE EXTENDED BEYOND THE NORMAL ONE HUNDRED EIGHTY DAY PERIOD FOR DISASTERS UNDER EXISTING LAWS NORMALLY AFTER THAT PERIOD THE FEDERAL GOVERNMENT WOULD COVER AS MUCH AS NINETY PERCENT OF THE COSTS OF BUILDING NEW HIGHWAYS TRANSPORTATION DEPARTMENT OFFICIALS SAY THEY HAVEN'T YET RECEIVED A FORMAL REQUEST FOR AN EXTENSION MEANWHILE THE EARTHQUAKE IS ALMOST CERTAIN TO CAUSE THE CLINTON ADMINISTRATION TO BACK OFF FROM ITS RECENT THREAT TO WITHHOLD FROM CALIFORNIA AS MUCH AS EIGHT HUNDRED MILLION DOLLARS IN FEDERAL HIGHWAY FUNDS BECAUSE OF THE STATE'S FAILURE TO COMPLY WITH THE NINETEEN NINETY CLEAN AIR ACT THE ENVIRONMENTAL PROTECTION AGENCY INFORMED THE STATE EARLIER THIS MONTH THAT IT WOULD CUT OFF THE FUNDS THIS SPRING IF THE STATE DIDN'T BRING ITS AUTOMOBILE INSPECTION PROGRAM IN LINE WITH NEW FEDERAL REQUIREMENTS BUT EVEN BEFORE THE EARTHQUAKE MANY QUESTIONED WHETHER THE E. P. A. WOULD CARRY OUT ITS THREAT AGAINST A FINANCIALLY STRAPPED POLITICALLY IMPORTANT STATE THAT IS GENERALLY VIEWED AS BEING ON THE CUTTING EDGE OF CLEAN AIR REGULATION IPSCO INCORPORATED SAID IT CHOSE MUSCATINE COUNTY IOWA AS THE SITE FOR ITS PROPOSED THREE HUNDRED SIXTY MILLION DOLLAR FLAT ROLLED STEEL MINIMILL THE STEELMAKER BASED IN REGINA SASKATCHEWAN ANNOUNCED PLANS TO BUILD THE MILL LAST FALL BUT HADN'T CHOSEN A LOCATION UNTIL NOW THE MILL WOULD PRODUCE ONE MILLION TONS ANNUALLY AND EMPLOY THREE HUNDRED PEOPLE STARTUP IS SCHEDULED FOR EARLY NINETEEN NINETY SIX IPSCO SAID CONSTRUCTION OF THE MILL IS CONDITIONED ON A NUMBER OF APPROVALS FROM THE IOWA STATE GOVERNMENT INCLUDING A CHANGE TO THE LAW TO PERMIT THE COMPANY TO OWN THE LAND FOR THE MILL IPSCO WHICH ALSO HAD CONSIDERED A SITE IN KENTUCKY SAID IT CHOSE THE IOWA LOCATION BECAUSE OF FAVORABLE TRANSPORTATION AND ENERGY COSTS LOCAL TAX LEVIES AND COUNTY AND STATE SUPPORT FOR INFRASTRUCTURE LIKE OTHER U. S. COMPANIES TIFFANY AND COMPANY DETECTS A NEW SCENT IN EUROPE CALL IT EAU D'AMERIQUE WHEN THE MANHATTAN JEWELER LAUNCHED ITS TIFFANY FRAGRANCE IN PARIS LAST JUNE IT HELD A BAGEL BREAKFAST AT THE RITZ SHOWED THE FILM QUOTE THE MAKING OF AN AMERICAN JEWELER QUOTE AND PLAYED GERSHWIN IN THE BACKGROUND WE THINK OUR AMERICAN APPEAL IS AN ASSET TIFFANY'S SPOKESWOMAN EXPLAINS AFTER HIDING OR AT LEAST NOT FLAUNTING THEIR YANKEE ROOTS FOR YEARS U. S. COMPANIES IN EUROPE ARE NOW PROUD TO BE AMERICAN THAT'S BECAUSE EUROPEAN CONSUMERS IT SEEMS ARE PROUD TO BUY AMERICAN AMERICAN CONSUMER GOODS COMPANIES ARE FINDING THAT MANY EUROPEANS SEE THE U. S. A. LABEL AS A STAMP OF QUALITY BERNARD BARNETT EDITORIAL DIRECTOR OF CAMPAIGN A U. K. ADVERTISING MAGAZINE SAYS THE IDEA OF ASSOCIATING AMERICA WITH HIGH QUALITY IS QUITE A NEW THING IN THIS MARKET TO BE SURE EUROPEANS HAVE LONG SHOWED ENTHUSIASM FOR MARLBORO CIGARETTES LEVI'S JEANS AND COCA COLA PRODUCTS WITH STRONG AMERICAN IDENTIFICATION BUT NOW USING DOWN HOME AMERICAN IMAGERY IN ADVERTISING AND MARKETING EVEN LUXURY GOODS CAN TRADE ON BEING AMERICAN JEEP CALLING ITSELF THE AMERICAN LEGEND IN EUROPE HAS SEEN ITS SALES THERE SURGE TO TWENTY FIVE THOUSAND LAST YEAR FROM EIGHTEEN THOUSAND IN NINETEEN NINETY ONE GOODYEAR SELLS ITS TIRES IN GERMANY WITH IMAGES OF INDY CARS AND PROMOTIONS FOR TRIPS TO THE STATES BUDWEISER AFTER FLOUNDERING IN EUROPE HAS MADE A NAME FOR ITSELF AS A PREMIUM BRAND WITH AN EARTHY AMERICAN AD CAMPAIGN BRITISH PRINT ADS TOUT SCHOTT BOMBER JACKETS AND RED WING WORK BOOTS IN THE SEVENTIES AND EIGHTIES THERE WAS A SHIFT TOWARD MUCH MORE EUROPEANNESS THERE WAS A BACKLASH AGAINST AMERICAN IMAGERY SAYS GARRY TITTERTON EXECUTIVE VICE PRESIDENT OF THE ADVERTISING FIRM MCCANN ERICKSON EUROPE NOW THE AMERICAN IMAGE IS VERY POSITIVE IN SOME SURPRISING PLACES WHAT'S MORE EUROPEANS ARE PAYING PREMIUM PRICES FOR AMERICAN GOODS A SIX PACK OF BUDWEISER COSTS ABOUT SEVEN DOLLARS IN BRITAIN COMPARED TO FOUR DOLLARS HERE BOSE LIFESTYLE HI FI EQUIPMENT COSTS THIRTY PERCENT MORE IN THE U. K. UP TO THREE THOUSAND DOLLARS FOR A WHOLE SYSTEM SOME ATTRIBUTE THE NEW DESIRE FOR THINGS AMERICAN TO WORLD WIDE DISTRIBUTION OF U. S. FILMS AND INCREASING TRAVEL TO THE STATES EUROPEAN TEENAGERS WEAR BASEBALL CAPS AND L. A. RAIDERS JACKETS SURVEYS HAVE SHOWN THAT MANY WANT TO LEARN ENGLISH AND WOULD HAPPILY MOVE TO AMERICA WAVING THE FLAG DOESN'T AUTOMATICALLY BRING SUCCESS AS DEMONSTRATED BY THE EURO DISNEY DEBACLE AND IT'S NOT CLEAR HOW FAR U. S. FIRMS CAN STRETCH THEIR AMERICAN APPEAL QUOTE GERMAN IS SYNONYMOUS WITH QUALITY ENGINEERING ITALIAN IS SYNONYMOUS WITH STYLE AND FRENCH IS SYNONYMOUS WITH CHIC QUOTE SAYS ROGER PARRY DEVELOPMENT DIRECTOR FOR AEGIS GROUP A LONDON MARKETING FIRM BUT I'M NOT EXACTLY SURE WHAT AMERICAN CONVEYS IT ISN'T AS CLEAR A STATEMENT STILL AMERICAN COMPANIES ARE SEEING HOW FAR THEY CAN PROMOTE THEIR NATIONALITY LANDS' END THE WISCONSIN MAIL ORDER FIRM THAT SET UP SHOP IN THE U. K. LAST FALL ANNOUNCED IN ITS CATALOG AND ADS WE'RE LANDS' END DIRECT MERCHANTS FROM AMERICA ITS CATALOG TALKS ABOUT WISCONSIN AND USES AMERICAN SPELLINGS THE COMPANY SAYS SALES ARE SOARING THE RUGGED AMERICAN LOOK APPEALS TO TOM WINDRIDGE A RETIRED CARPET EXECUTIVE FROM NORTHWEST ENGLAND AFTER VISITING THE STATES FOUR TIMES IN THE PAST FIVE YEARS HE BECAME HOOKED ON THE UNUSUAL QUALITY OF THE GOODS HE FOUND SO WHEN HE SPIED THE LANDS' END AD IN A BRITISH MAGAZINE HE ORDERED THE CATALOG AND GOT HIMSELF A DENIM SHIRT JEEP LAUNCHED ITS CHEROKEE IN EUROPE IN NINETEEN EIGHTY EIGHT WITH AN AMERICAN THEME ITS BIGGEST SPURT CAME LAST YEAR WITH THE DEBUT OF THE TOP OF THE LINE GRAND CHEROKEE IT MIGHT SEEM FOOLISH TO TRY TO SELL JEEPS IN THE U. K. WHERE THE HOME PRODUCT LAND ROVER ALREADY HAS A SOLID REPUTATION BUT THOMAS L. BERNARDIN PRESIDENT OF BOZELL SLASH NORTH A DETROIT ADVERTISING FIRM THAT HANDLES JEEP SEES MUCH MORE OPEN MINDEDNESS TO AMERICAN PRODUCTS THE LATEST PRINT AD IN THE U. K. FEATURES A JEEP WITH ENGLISH PLATES IN FRONT OF A LOG CABIN WITH AN AMERICAN FLAG KENTUCKY BASED BROWN FORMAN WHICH MANUFACTURES JACK DANIEL'S AND SOUTHERN COMFORT HAS BEEN USING A U. S. A. THEME SINCE IT STARTED SELLING IN EUROPE MORE THAN TWO DECADES AGO BUT ONLY RECENTLY HAVE JACK DANIEL'S AND SOUTHERN COMFORT LIQUORS POSTED DOUBLE DIGIT GROWTH IN EUROPE QUOTE THERE'S NO QUESTION JACK DANIEL'S AND SOUTHERN COMFORT HAVE BENEFITED ENORMOUSLY FROM BEING AMERICAN BRANDS QUOTE SAYS LYONS BROWN MARKETING DIRECTOR FOR NORTHERN EUROPE JACK DANIEL'S PRINT ADS THROUGHOUT EUROPE AND THE U. S. CONTAIN SCENES OF LYNCHBURG TENNESSEE JIM BEAM'S U. K. PRINT ADS WHICH COMPETE WITH JACK DANIEL'S READ THE AMERICAN SPIRIT SINCE ONE THOUSAND SEVEN HUNDRED NINETY FIVE LIKE BROWN FORMAN ANHEUSER BUSCH INCORPORATED HAS FOUND THAT BLUE COLLAR AMERICANA GIVES ITS BUDWEISER BRAND CACHET THE BREWER BEGAN ITS PUSH HERE IN NINETEEN EIGHTY FOUR WITH HIGH GLITZ PUB SCENE ADS INCLUDING A TAKEOFF ON THE TOP GUN MOVIE AFTER FIVE YEARS OF LACKLUSTER SALES BUDWEISER SWITCHED TO A MORE DOWN HOME THEME AND A NEW SLOGAN THE GENUINE ARTICLE PRINT ADS INCLUDE MONTANA LAKE FISHING AND A NEVADA TRUCK STOP A TELEVISION AD RUNNING IN SPAIN SWEDEN AND ITALY PORTRAYS A CARD PLAYER'S TRAIN RIDE THROUGH UTAH SEEING OTHERS' SUCCESS SOME U. S. COMPANIES WITH NO CLEAR AMERICAN IMAGE ARE CREATING ONE A BRITISH AD FOR BLISTEX FOR EXAMPLE IS A TESTIMONIAL FROM A FICTITIOUS DOPEY BLOND MISS IDAHO LOVELY LIPS WHO DECLARES THE STUFF AMERICA'S BEST SELLING LIP CREAM NORDIC TRACK A UNIT OF ACTON MASSACHUSETTS BASED C. M. L. GROUP INCORPORATED FOUND THAT MOST EUROPEAN CONSUMERS THOUGHT NORDIC SPORT SKI MACHINES WERE SCANDINAVIAN SO IT LAUNCHED AN AD WITH THE HEADLINE NOW FROM THE U. S. A. THE WORLD'S BEST AEROBIC WORKOUT THE AD MENTIONS AMERICAN DOCTORS' ENDORSEMENTS AND ITS BROCHURE BOASTS THAT IT HAS SOLD TWO MILLION IN AMERICA NORDIC TRACK HAS SOLD TENS OF THOUSANDS SINCE IT OPENED IN THE U. K. IN OCTOBER NINETEEN NINETY TWO EVEN THOUGH ITS PRICE IS FIFTY PERCENT HIGHER IN EUROPE IT'S ALSO MOVING INTO GERMANY THE NETHERLANDS AND FRANCE BOSE CORPORATION THE AMERICAN MAKER OF LIFESTYLE HI FI SYSTEMS HAS TRIED A SIMILAR TACK WHEN IT LAUNCHED ITS FULL LINE IN EUROPE IN SEPTEMBER AT A THIRTY PERCENT PREMIUM TO THE U. S. IT USED PRINT ADS FEATURING PRAISE FROM THE NEW YORK TIMES ITS TELEVISION ADS AND SHOWROOM VIDEOS TALK ABOUT ITS FOUNDER'S AFFILIATION WITH THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND IT BRAGS THAT ITS SYSTEMS ARE USED IN THE STATES IN G. M. CARS AND BY NASA EUROPE'S CUSTOMERS ARE TUNING IN TO THAT MESSAGE MATTHEW OXFORD A YOUNG CIVIL SERVANT FROM CORNWALL IN SOUTHWEST ENGLAND SPLURGED ON A SYSTEM JUNKING HIS BRITISH MODEL MR. OXFORD SAYS HE USED TO HAVE A TYPICALLY EUROPEAN ATTITUDE TOWARD THE U. S. RATHER TACKY LACKING IN TASTE BUT AFTER FOUR AMERICAN VACATIONS HE'S REVISED HIS OPINION AT A FILM STUDIO IN FLORIDA HE SPIED THE BOSE SYSTEM AT WORK AND DECIDED TO GET ONE FOR HIMSELF QUOTE I'M MUCH MORE PREPARED TO ACCEPT AMERICAN GOODS QUOTE MR. OXFORD SAYS I'M VERY FOND OF AMERICA HERE'S HOW SOME LOS ANGELENOS COPED WITH THE TRAUMA OF THE WORST EARTHQUAKE TO HIT THE CITY THIS CENTURY THEY RENTED THE MOVIE QUOTE EARTHQUAKE QUOTE IT'S KIND OF SICK IN A WAY SAYS STEPHEN MARCUS A CLERK AT THE VIDEO WEST STORE IN WEST HOLLYWOOD WHICH RENTED ALL THREE OF ITS COPIES OF EARTHQUAKE MONDAY NIGHT AND COULD HAVE RENTED DOZENS MORE IN THE NINETEEN SEVENTY FOUR FILM THE CITY OF ANGELS IS HELLISHLY LEVELED BY THE BIG ONE BUT LEAVE IT TO AN EXPERT TO HAVE A GENTLER VIEW THAN MR. MARCUS IT'S COUNTER PHOBIC BEHAVIOR TO MAKE MANAGEABLE FEELINGS THAT ARE PRETTY UNMANAGEABLE SAYS LOS ANGELES PSYCHOLOGIST MELINDA PETERS WHO HAS FOUND COMFORT FROM HER OWN POST QUAKE ANXIETIES BY LISTENING TO HER PATIENTS' PROBLEMS IF YOU LOOK AT SOMETHING BAD OR WORSE THAN WHAT YOU'RE GOING THROUGH IT MAKES YOUR SITUATION SEEM LESS SCARY CALL IT LAUGHING IN THE FACE OF TRAGEDY BUT IN A CITY THAT HAS LURCHED FROM ONE CALAMITY TO ANOTHER OVER THE PAST TWENTY MONTHS RESIDENTS HAVE DEVELOPED UNUSUAL COPING MECHANISMS TO GET THROUGH THIS LATEST DISASTER CAROL AND JOSEPH OZER MANAGED TO CRACK A FEW JOKES EVEN AS THEY SHOWED A REPORTER THEIR SHERMAN OAKS APARTMENT WHICH NOW HAS GAPING CRACKS IN THE WALLS AND GLASS AND DEBRIS STREWN THROUGHOUT DO YOU LIKE WHAT WE'VE DONE TO THE PLACE WE CALL IT CALIFORNIA EARTHQUAKE MODERN QUOTE SAYS MR. OZER A PART TIME MOVIE EXTRA BY DAYBREAK MONDAY EARLIER SCENES OF TERROR AND DEVASTATION HAD ALREADY MUTATED INTO TOURIST ATTRACTIONS FOR SQUADS OF ANGELENOS WHO HAD ENDURED COUNTLESS AFTERSHOCKS OF THE SIX POINT SIX QUAKE JUST OFF LA CIENEGA BOULEVARD WHERE THE SANTA MONICA FREEWAY PANCAKED INTO A STORAGE WAREHOUSE BELOW GAWKERS AND EVEN A CADRE OF ON DUTY POLICEMEN CLAMORED TO GET THEIR PICTURES SNAPPED IN FRONT OF THE WRECKAGE MICHAEL THOMAS AN ENGINEER AND HIS FRIENDS LEFT WITH POCKETFULS OF PAVEMENT CHUNKS THAT STILL BORE YELLOW FREEWAY STRIPING SOUVENIRS FOR MY FRIENDS AND FAMILY HE EXPLAINS JUST LIKE THE BERLIN WALL AS RESIDENTS GROPED TO MAKE SENSE OF THE RANDOM DESTRUCTION AROUND THEM FATE'S TINIEST ACTS OF MERCY WERE TAKING ON ALMOST MIRACULOUS SIGNIFICANCE EUNI BROWN NARROWLY ESCAPED WITH HER LIFE FROM THE BUILDING ADJACENT TO THE DEVASTATED NORTHRIDGE MEADOWS APARTMENT COMPLEX WHERE AT LEAST SIXTEEN PEOPLE DIED SHE WAS AMAZED TO FIND THAT ALTHOUGH HER APARTMENT WAS DEMOLISHED HER PRIZED PATIO PLANTS WERE LEFT UNTOUCHED I COULDN'T BELIEVE IT SHE SAYS THREE OF MY PLANTS WERE STILL SITTING PERFECTLY BALANCED THERE ON THE BALCONY RAILING COLEENE KILEY MOPPING UP IN HER SYLMAR HOME MARVELS THAT THE ONLY MEMENTO THAT DIDN'T COME TUMBLING OFF THE WALLS WAS A CHERISHED ITALIAN CERAMIC DISH DEPICTING THE HOLY FAMILY AND THAT WAS THE ONLY THING THAT WAS LEFT ON THE WALLS IN THE NINETEEN SEVENTY ONE QUAKE TOO SAYS MRS. KILEY A DEVOUT CATHOLIC PARISHIONERS AT THE METROPOLITAN COMMUNITY CHURCH IN CULVER CITY LOCATED IN A SIXTY FIVE YEAR OLD TURKISH STYLED BUILDING THAT WAS ONCE A POPULAR WATERING HOLE FOR M. G. M. MOGULS WERE AMAZED TO FIND THE ONLY DAMAGE WAS TO A GARISH BRICK MINARET IN THE BUILDING'S FRONT QUOTE WE'RE REMODELING ANYWAY AND I GUESS GOD JUST DIDN'T THINK THE OLD TOWER LOOKED RIGHT QUOTE SAYS JUDY HOSNER A CHURCH MEMBER AND ENGINEER COMMUNITY AND SPIRIT AREN'T WORDS OFTEN USED IN THE SAME SENTENCE HERE BUT THE EARTHQUAKE HAS HAD THE UNDENIABLE EFFECT OF BRINGING TOGETHER THIS SPRAWLING CITY OF STRANGERS I WENT OUTSIDE WITH A FLASHLIGHT AFTER THE QUAKE AND IT WAS A BLOCK PARTY WITH ALL THESE PEOPLE I'D NEVER MET BEFORE SAYS VICKI GREENLEAF WHO AWOKE TO THE SOUND OF EVERYTHING I OWN AND WORKED SO HARD FOR CRASHING TO THE GROUND NEIGHBORS HUDDLED AROUND CAR RADIOS FOR NEWS REPORTS AND SWAPPED SURVIVAL STORIES LONG AFTER THE INITIAL TREMORS HAD SUBSIDED STRANGERS WERE REACHING OUT TO ONE ANOTHER FOR SUPPORT PEOPLE IN THE HARD HIT SAN FERNANDO VALLEY WITHOUT ELECTRICITY AND WORRIED THAT THEIR TRACT HOMES MIGHT NOT WITHSTAND THE AFTERSHOCKS PITCHED TENTS ON THEIR FRONT LAWNS AND INVITED ONE ANOTHER TO IMPROMPTU BARBECUES ON THE MENU ALL THE MEAT IN THEIR FREEZERS DESTINED TO SPOIL BECAUSE OF POWER OUTAGES IN WEST HOLLYWOOD ACTRESS ESTELLE HARRIS OF T. V.'S SEINFELD WHO HAD ARRIVED FROM NEW YORK TO VISIT HER SON GLEN JUST IN TIME FOR THE QUAKE ORGANIZED AN IMPROMPTU POTLUCK DINNER FOR THE NEIGHBORS AT HER SON'S APARTMENT COMPLEX JUST LIKE THE YENTA LIKE MATRIARCH SHE PLAYS ON THE SITCOM MRS. HARRIS SPENT THE EVENING FUSSING OVER THIS RAGTAG BROOD OF SHAKEN SOULS MAKING SURE THEY ATE PLENTY OF HER BARLEY SOUP AND RUMP ROAST I'M A MOTHER AND WHEN SOMETHING LIKE THIS HAPPENS I WORRY THAT THERE WON'T BE ANY MORE FOOD MRS. HARRIS SAYS SHE MADE SURE THE GROUP LEFT WITH HER SOUP RECIPE AND EVEN INTERRUPTED THE NONSTOP EARTHQUAKE COVERAGE ON T. V. TO POP IN A VIDEOTAPE OF HERSELF MAKING THE SOUP ON LIVE WITH REGIS AND KATHIE LEE THIS BEING LOTUSLAND PSYCHICS AS WELL AS PSYCHOLOGISTS HAVE BEEN ON THE FRONT LINES HELPING TO GET ANGELENOS BACK TO EMOTIONAL EQUILIBRIUM ANNIE GUY WHO READS PALMS AND TAROT CARDS FROM HER SHOP UP THE STREET FROM THE COLLAPSED SANTA MONICA FREEWAY SAYS SHE HAS SEEN PLENTY OF NEW CUSTOMERS IN THE PAST TWO DAYS QUOTE THEY WANT TO KNOW IF THERE WILL BE A MUCH LARGER EARTHQUAKE THAN WE'VE ALREADY HAD AND IF WE WILL RECOVER QUOTE SAYS MS. GUY ADDING THAT HER PSYCHIC POWERS TELL HER QUOTE THERE ISN'T GOING TO BE ANYTHING MAJOR QUOTE IN THE WAY OF AFTERSHOCKS MY ADVICE IS TO HAVE FAITH AND THINK POSITIVE A LOT OF PRAYER AND MEDITATION WILL HELP MAYBE BUT MR. AND MRS. OZER AREN'T TAKING ANY CHANCES AND HAVE DECIDED TO MOVE OUT OF THEIR SHERMAN OAKS APARTMENT FOR SOMEWHERE ELSE IN THE AREA THE OMENS HAVE BEEN JUST TOO GREAT THE NIGHT AFTER WE MOVED IN IN NINETEEN NINETY TWO THE LANDERS QUAKE HIT MRS. OZER SAYS IT'S TIME TO LEAVE U. S. STEEL MINING COMPANY SAID IT WILL CLOSE ITS MAPLE CREEK COAL MINE AND PREPARATION PLANT IN WASHINGTON COUNTY PENNSYLVANIA CITING QUOTE SEVERE ROCK CONDITIONS QUOTE THE CONDITIONS MAKE CONTINUED MINING OF COAL ECONOMICALLY INFEASIBLE THE COMPANY SAID CALLING THE PROBLEM UNFORESEEN AND UNPREDICTABLE THE OPERATIONS WERE IDLED JANUARY ELEVENTH AND U. S. STEEL MINING EXPECTS TO BEGIN LAYOFFS ON FRIDAY OF THE FIVE HUNDRED WORKERS AFFECTED BY THE MOVE U. S. STEEL MINING HAS TWO THOUSAND EMPLOYEES A SPOKESMAN SAID THE COMPANY LIKELY WILL RECORD A CHARGE IN THE FOURTH QUARTER RELATED TO THE CLOSING THOUGH THE AMOUNT HAS YET TO BE DETERMINED THE MAPLE CREEK OPERATIONS ARE SCHEDULED TO CLOSE MARCH THIRTY FIRST U. S. STEEL MINING IS A UNIT OF U. S. STEEL GROUP WHICH IN TURN IS OWNED BY U. S. X. CORPORATION ALL ARE BASED IN PITTSBURGH PRICES OF WHEAT FUTURES CONTRACTS FELL AS PROSPECTS FOR U. S. GRAIN EXPORTS TO RUSSIA AND CHINA DIMMED THE ABRUPT RESIGNATION OF YEGOR GAIDAR RUSSIA'S ECONOMIC REFORM CZAR DAMPED SPECULATION THAT MOSCOW MIGHT BE INTERESTED IN IMPORTING AS MUCH AS SEVENTY THREE POINT FIVE MILLION BUSHELS OF SUBSIDIZED U. S. WHEAT BY JUNE MR. GAIDAR WAS WIDELY SEEN IN GRAIN TRADING CIRCLES AS CENTRAL TO ANY CREDIT AGREEMENT THAT WOULD CLEAR THE WAY FOR A GRAIN DEAL WHEAT PRICES WERE ALSO DEPRESSED BY REPORTS THAT THE U. S. AGRICULTURE DEPARTMENT IS BALKING AT TERMS OF A CHINESE BID TO BUY TEN POINT FIVE MILLION BUSHELS OF SUBSIDIZED WHEAT CHINA HAS ALREADY ARRANGED THE PURCHASE OF TWENTY NINE POINT NINE MILLION BUSHELS OF U. S. WHEAT MEANWHILE SOME U. S. TRADERS EXPECT TO SEE MORE COMPETITION FROM MAJOR WHEAT EXPORTERS THE AUSTRALIAN WHEAT BOARD RAISED ITS ESTIMATE OF THAT NATION'S IMPENDING WHEAT HARVEST TO SIX HUNDRED SIXTY EIGHT POINT SEVEN MILLION BUSHELS FROM SIX HUNDRED THIRTY FIVE POINT SEVEN MILLION BUSHELS THE SUB ZERO TEMPERATURES ACROSS THE U. S. FARM BELT IN RECENT DAYS NORMALLY WOULD LIFT CORN PRICES LIVESTOCK EAT MORE GRAIN IN SUCH COLD CONDITIONS BECAUSE THEY NEED MORE ENERGY TO STAY WARM BUT CORN PRICES SANK AMID A WAVE OF PROFIT TAKING ACCORDING TO TRADERS THE MANAGERS OF LARGE COMMODITY FUNDS SOLD FUTURES CONTRACTS REPRESENTING THIRTY MILLION BUSHELS OF CORN THE MARCH CORN FUTURES CONTRACT AT THE CHICAGO BOARD OF TRADE FELL SIX CENTS A BUSHEL TO SETTLE AT THREE POINT OH ONE TWO FIVE DOLLARS A BUSHEL CORN PRICES HAVE CLIMBED SINCE OCTOBER BECAUSE U. S. GRAIN STOCKPILES ARE EXPECTED TO SHRINK TO UNUSUALLY LOW LEVELS THIS YEAR IN THE WAKE OF THE NINETEEN NINETY THREE CROP DISASTER IN THE MIDWEST SOYBEAN PRICES SETTLED LOWER RICHARD LOEWY PRESIDENT OF AGRESOURCE COMPANY CHICAGO SAID TRADERS ARE WATCHING TO SEE WHETHER A DRY SPELL DEVELOPS OVER A SOYBEAN GROWING REGION IN BRAZIL WHERE THE CROP IS IN ITS CRITICAL GROWTH STAGE BECAUSE OF IDEAL WEATHER EARLIER THIS GROWING SEASON ANALYSTS HAVE BEEN FORECASTING BRAZIL TO GENERATE RECORD SOYBEAN YIELDS DURING THE APRIL AND MAY HARVEST BRAZIL IS A MAJOR COMPETITOR OF THE U. S. IN THE WORLD SOYBEAN MARKET SO A SMALLER HARVEST THERE WOULD TEND TO SUPPORT U. S. PRICES ENERGY THE PROMISE OF WARMER WEATHER AND AN APPARENTLY WIDESPREAD BELIEF THAT HEATING OIL FUTURES WERE TRADING TOO HIGH COMBINED TO PUSH PETROLEUM FUTURES PRICES LOWER IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE FEBRUARY HEATING OIL LOST THREE POINT ONE NINE CENTS TO SETTLE AT FORTY NINE POINT FOUR NINE CENTS A GALLON AND PULLED CRUDE LOWER AS WELL CRUDE OIL FOR FEBRUARY DELIVERY FELL TWENTY THREE CENTS TO SETTLE AT FOURTEEN DOLLARS AND EIGHTY SEVEN CENTS A BARREL NATURAL GAS ALSO LOST GROUND ON FORECASTS OF A WARMING TREND FEBRUARY NATURAL GAS FELL FOUR POINT TWO CENTS TO TWO POINT THREE ONE EIGHT DOLLARS PER MILLION BRITISH THERMAL UNITS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET PRECIOUS METALS GOLD AND SILVER FUTURES PRICES ROSE ON HEALTHY INVESTOR DEMAND AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS UP ONE DOLLAR AND FORTY CENTS TO THREE HUNDRED NINETY THREE DOLLARS AND SIXTY CENTS AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVER FUTURES CONTRACT ROSE ONE POINT FIVE CENTS TO FIVE POINT THREE FOUR SEVEN DOLLARS AN OUNCE INVESTOR DEMAND FOR PRECIOUS METALS REMAINS STRONG BECAUSE OF PERCEPTIONS THAT THE U. S. ECONOMY IS ENCOUNTERING A SUSTAINED RECOVERY ANALYSTS SAID FLEMING COMPANIES UNVEILED A CONSOLIDATION PLAN THAT IS EXPECTED TO SLASH ITS WORK FORCE BY TWO THOUSAND PEOPLE OR NINE PERCENT AND RESULT IN A PRETAX FOURTH QUARTER CHARGE OF ABOUT ONE HUNDRED ONE MILLION DOLLARS THE OKLAHOMA CITY FOOD DISTRIBUTOR SAID THE CHARGE WHICH WILL CREATE A FOURTH QUARTER LOSS WILL REDUCE EARNINGS BY ABOUT SIXTY TWO MILLION DOLLARS OR ONE DOLLAR AND SIXTY EIGHT CENTS A SHARE LAST MONTH FLEMING WARNED THAT ITS EARNINGS FOR THE PERIOD WOULD BE BETWEEN FORTY CENTS AND FORTY FIVE CENTS A SHARE MUCH LESS THAN ANALYSTS HAD FORECAST BEFORE A TWO POINT SEVEN MILLION DOLLAR CHARGE RELATED TO EARLY RETIREMENT OF DEBT IN THE FOURTH QUARTER OF NINETEEN NINETY TWO FLEMING EARNED TWENTY FOUR MILLION DOLLARS OR SIXTY SIX CENTS A SHARE THE COMPANY SAID IT EXPECTS ITS STREAMLINING MOVES TO TAKE PLACE OVER THE NEXT TWO YEARS WILL REDUCE OPERATING COSTS BY AT LEAST SIXTY FIVE MILLION DOLLARS A YEAR BUT IT SAID IT FORESEES NO IMPROVEMENT IN EARNINGS FROM ITS CORE OPERATIONS BEFORE NINETEEN NINETY FIVE THE COST CUTTING MOVES INCLUDE CLOSING FIVE REGIONAL STAFF OFFICES AND CONSOLIDATING SEVERAL OPERATING DIVISIONS CHARLES W. GRIGG RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER OF THIS VALVE MAKER TO BECOME CHAIRMAN AND CHIEF EXECUTIVE OF S. P. S. TECHNOLOGIES IN NEW TOWN PENNSYLVANIA WATTS INDUSTRIES SAID TIMOTHY P. HORNE ITS CHAIRMAN AND CHIEF EXECUTIVE WILL ASSUME MR. GRIGG'S RESPONSIBILITIES WATTS ALSO NAMED AS DIRECTORS KENNETH J. MCAVOY ITS CHIEF FINANCIAL OFFICER DAVID A. BLOSS SENIOR AN EXECUTIVE VICE PRESIDENT AND WENDY E. LANE CHAIRMAN OF LANE HOLDINGS INCORPORATED A PRIVATE EQUITY INVESTOR THE APPOINTMENTS EXPAND BOARD MEMBERSHIP TO EIGHT CANADIAN NEWSPRINT PRODUCTION FELL THREE POINT TWO PERCENT IN NOVEMBER FROM A YEAR EARLIER WHILE SHIPMENTS ROSE ONE POINT EIGHT PERCENT THE CANADIAN PULP AND PAPER ASSOCIATION SAID CANADIAN MILLS OPERATED AT NINETY SEVEN PERCENT OF CAPACITY IN NOVEMBER UNCHANGED FROM A YEAR EARLIER THE INDUSTRY GROUP SAID OUTPUT FOR NOVEMBER WAS SEVEN HUNDRED SIXTY NINE THOUSAND METRIC TONS DOWN FROM SEVEN HUNDRED NINETY FOUR THOUSAND METRIC TONS A YEAR EARLIER TOTAL SHIPMENTS ROSE TO SEVEN HUNDRED NINETY NINE THOUSAND METRIC TONS FROM SEVEN HUNDRED EIGHTY SIX THOUSAND METRIC TONS A YEAR EARLIER A METRIC TON IS EQUAL TO ABOUT TWO THOUSAND TWO HUNDRED FOUR POINT SIX POUNDS SHIPMENTS TO THE U. S. FELL EIGHT POINT EIGHT PERCENT FROM A YEAR EARLIER TO FOUR HUNDRED EIGHTY NINE THOUSAND METRIC TONS DOMESTIC SHIPMENTS ROSE FOUR POINT SEVEN PERCENT TO NINETY NINE THOUSAND METRIC TONS SHIPMENTS TO OFFSHORE MARKETS ROSE THIRTY SIX POINT FIVE PERCENT TO TWO HUNDRED ELEVEN THOUSAND METRIC TONS CANADIAN MILLS' STOCKS TOTALED FOUR HUNDRED SIXTY EIGHT THOUSAND METRIC TONS AT THE END OF NOVEMBER COMPARED WITH FOUR HUNDRED NINETY EIGHT THOUSAND METRIC TONS AT THE END OF OCTOBER AND FOUR HUNDRED FIVE THOUSAND METRIC TONS AT THE END OF NOVEMBER NINETEEN NINETY TWO U. S. PENSION FUNDS MAY NOT BE GLOBE TROTTERS YET BUT THEY'RE MOVING QUICKLY IN THAT DIRECTION IN THE NEXT THREE YEARS THE SHARE OF U. S. PENSION ASSETS INVESTED ABROAD WILL RISE BY AN AVERAGE OF FIFTY PERCENT ACCORDING TO THE LATEST ANNUAL SURVEY BY GREENWICH ASSOCIATES A PENSION CONSULTING FIRM BY NINETEEN NINETY SIX THE FUNDS INCLUDING CORPORATE PENSION FUNDS PUBLIC RETIREMENT SYSTEMS ENDOWMENTS AND FOUNDATIONS EXPECT TO HAVE THREE HUNDRED SEVENTY NINE BILLION DOLLARS OR TWELVE PERCENT OF TOTAL ASSETS INVESTED IN FOREIGN STOCKS AND BONDS UP FROM TWO HUNDRED TEN BILLION DOLLARS OR EIGHT PERCENT OF ASSETS TODAY THE INCREASE IN FOREIGN INVESTMENTS WILL COME MAINLY AT THE EXPENSE OF U. S. BONDS WHICH ARE EXPECTED TO DROP TO AN AVERAGE OF THIRTY PERCENT OF TOTAL ASSETS IN NINETEEN NINETY SIX FROM THIRTY THREE PERCENT TODAY U. S. STOCK HOLDINGS MEANWHILE ARE EXPECTED TO REMAIN STEADY AT SLIGHTLY MORE THAN FORTY FOUR PERCENT OF ASSETS ON AVERAGE THE DATA SHOW IN NINETEEN NINETY THREE THE FOREIGN HOLDINGS OF U. S. PENSION FUNDS INCREASED BY FIFTY THREE BILLION DOLLARS AN AMOUNT EQUIVALENT TO TWO THIRDS OF THE ENTIRE CAPITALIZATION OF SINGAPORE'S STOCK EXCHANGE A SUBSTANTIAL AMOUNT OF THE NINETEEN NINETY THREE INCREASE CAME FROM NEW PURCHASES RATHER THAN PRICE APPRECIATION OF EXISTING HOLDINGS SAYS PHILLIP MAISANO PRESIDENT OF EVALUATION ASSOCIATES A PENSION CONSULTANT BASED IN NORWALK CONNECTICUT WHILE EMERGING MARKETS DELIVERED STUNNING DOUBLE DIGIT RETURNS LAST YEAR MR. MAISANO FIGURES THAT ABOUT THREE QUARTERS OF PENSION FUNDS' FOREIGN INVESTMENTS ARE IN THE LARGER MORE DEVELOPED MARKETS OF EUROPE AND JAPAN AND BECAUSE THE DEVELOPED MARKETS' OVERALL PERFORMANCE HAS LAGGED BEHIND THAT OF THE U. S. STOCK MARKET FOR SEVERAL YEARS QUOTE YOU WOULD HAVE LOST GROUND WITH THESE HOLDINGS QUOTE AS A PERCENTAGE OF TOTAL ASSETS HE SAYS THE BIG MOTIVATION FOR THE PENSION FUNDS' GLOBAL PUSH IS THEIR DESIRE TO BUOY INVESTMENT RETURNS AND THUS LOWER THE AMOUNT OF NEW CASH THAT MUST BE SET ASIDE FOR RETIREES AT THE EXPENSE OF TAXPAYERS AND COMPANY SHAREHOLDERS WITH U. S. STOCK VALUATIONS AT LOFTY LEVELS AND INTEREST RATES ABYSMALLY LOW FUNDS MUST LOOK FARTHER AFIELD AND SHOULDER EXTRA RISK TO TRY TO MAINTAIN THE DOUBLE DIGIT GAINS TO WHICH THEY'VE GROWN ACCUSTOMED CONSULTANTS SAY THE DIZZYING VOLATILITY OF SOME FOREIGN MARKETS SUCH AS THE MALAYSIAN STOCK MARKET'S SUDDEN TWENTY PERCENT PLUNGE IN RECENT DAYS IS SOMETIMES HARD FOR PENSION FUNDS TO STOMACH BUT THAT HASN'T DETERRED THE FUNDS FROM WADING DEEPER INTO INTERNATIONAL WATERS THE RISKS OF SOME EMERGING MARKETS MAKE ME A LITTLE NERVOUS SAYS RALPH LAYMAN WHO OVERSEES INTERNATIONAL STOCK INVESTMENTS FOR GENERAL ELECTRIC COMPANY'S TWENTY SEVEN POINT FIVE BILLION DOLLAR PENSION PLAN EVEN SO HE SAYS HE FEELS COMFORTABLE EDGING THE TRUST'S OVERALL FOREIGN STOCK HOLDINGS UP TO FIFTEEN PERCENT THIS YEAR FROM THIRTEEN PERCENT IN NINETEEN NINETY THREE SHORT TERM YOU HAVE TO BE PREPARED FOR VOLATILITY BUT LONG TERM THE POTENTIAL GROWTH STILL MERITS INTEREST THERE HE ADDS IN FACT G. E. EAGER TO BE AMONG THE GLOBAL AVANT GARDE IS LOOKING TO INVEST IN EMERGING MARKETS THROUGH LESS CONVENTIONAL MEANS THAN EXCHANGE LISTED STOCKS G. E. HAS HAD SUBSTANTIVE DISCUSSIONS WITH JULIAN ROBERTSON'S TIGER INTERNATIONAL HEDGE FUND ABOUT PRIVATE INVESTMENT OPPORTUNITIES IN DEVELOPING COUNTRIES MR. LAYMAN SAYS YOU CANNOT GO AND SIT DOWN WITH ANY PENSION PLAN SPONSOR TODAY WITHOUT TALKING ABOUT EMERGING MARKETS SAYS KENNETH ROGERS A MANAGING DIRECTOR AT PENSION DARIEN CONNECTICUT CONSULTING FIRM ROGERS CASEY AND ASSOCIATES INCORPORATED QUOTE EMERGING MARKETS IS THE FASTEST ASSET CLASS TO BE LEGITIMIZED BY PENSION FUNDS QUOTE EVEN TRADITIONALLY CONSERVATIVE PUBLIC SECTOR FUNDS ARE MOVING WITH THE GLOBAL TREND FOR INSTANCE MASSACHUSETTS BAY TRANSPORTATION AUTHORITY'S ONE POINT ONE BILLION DOLLAR PENSION FUND WILL RAISE ITS FOREIGN STOCK HOLDINGS TO THIRTEEN PERCENT OF ASSETS BY MARCH THIRTY FIRST FROM EIGHT PERCENT IN NINETEEN NINETY THREE AND JUST FIVE PERCENT IN NINETEEN NINETY TWO SAYS JOHN GALLAHUE THE FUND'S EXECUTIVE DIRECTOR GLOBAL BONDS ABSENT BEFORE JUNE NINETEEN NINETY TWO NOW REPRESENT SIX PERCENT OF THE MBTA'S PORTFOLIO THE FUND ALSO PLANS TO TRADE FOREIGN STOCK INDEX OPTIONS TO FURTHER TWEAK OUR PERFORMANCE HE ADDS SUCH MOVES AREN'T ANYTHING RADICAL MR. GALLAHUE SAYS BUT THEY AREN'T FREE FROM RISK EITHER IF SOMETHING GOES WRONG AND IT'S A NEW IDEA YOU'D BE LOOKING FOR EMPLOYMENT ELSEWHERE HE SAYS DESPITE THE UPS AND DOWNS OF INDIVIDUAL INVESTMENTS MANY FUNDS EXPECT THAT LOADING UP ON FOREIGN SECURITIES WILL LOWER NOT RAISE THEIR PORTFOLIOS' RISK OVER TIME THE REASON RETURNS ON FOREIGN INVESTMENTS HAVE HISTORICALLY SHOWN LITTLE CORRELATION WITH U. S. INVESTMENTS IN OTHER WORDS BECAUSE THEY TEND TO ZIG WHEN U. S. MARKETS ZAG SUCH HOLDINGS HELP STABILIZE RETURNS ON A FUND'S OVERALL PORTFOLIO HOWEVER ACHIEVING THE BENEFITS OF SUCH DIVERSIFICATION REQUIRES RELATIVELY HIGH ALLOCATIONS BE MADE TO A GIVEN MARKET FOR IT TO HAVE A MEANINGFUL IMPACT ON THE OVERALL PORTFOLIO SAYS TIMOTHY CUNNINGHAM EDITOR OF THE TRUSTEE'S JOURNAL A PUBLICATION FOR PENSION EXECUTIVES WHAT'S MORE THOSE EXPECTED BENEFITS WILL ONLY MATERIALIZE IF THE OLD CORRELATIONS PERSIST THERE'S NO GUARANTEE THAT THEY WILL ESPECIALLY WITH U. S. PENSION GIANTS INCREASINGLY DOMINATING THE BEHAVIOR OF MANY SMALLER FOREIGN MARKETS MEANWHILE THE GREENWICH SURVEY FIGURES MAY UNDERSTATE THE EXPOSURE OF U. S. PENSION PLANS TO FOREIGN MARKETS BECAUSE THEY MAY NOT FULLY ACCOUNT FOR DERIVATIVES FINANCIAL ARRANGEMENTS DESIGNED TO TRACK THE RETURNS OF INTERNATIONAL STOCKS BONDS AND OTHER ASSETS FOR INSTANCE THE MICHIGAN RETIREMENT SYSTEM'S TWENTY FOUR POINT NINE BILLION DOLLAR PLAN LAST YEAR USED QUOTE EQUITY SWAPS QUOTE TO GAIN SEVEN HUNDRED MILLION DOLLARS OF EXPOSURE TO FOREIGN STOCKS UNDER THE SWAP AGREEMENTS THE PLAN WILL RECEIVE RETURNS LINKED TO THE PERFORMANCE OF EUROPEAN AND BRITISH STOCK INDEXES IN RETURN FOR A MORE STABLE STREAM OF PAYMENTS LINKED TO SHORT TERM INTEREST RATES THE ARRANGEMENT ALLOWS THE MICHIGAN PLAN TO REDUCE TRANSACTION COSTS WHILE AVOIDING THE HASSLES OF HIRING A FOREIGN STOCK MANAGER AND WORRYING ABOUT INTERNATIONAL CUSTODIAL ARRANGEMENTS ACCORDING TO DEPUTY DIRECTOR GORDON LINSDAY JUST BEFORE BEING MOBBED AT A GATHERING OF FANS IN MID NINETEEN NINETY TWO NEWLY MINTED SUPERSTAR BILLY RAY CYRUS THREW HIS ARMS AROUND TRACY STOREY THE PROGRAMMING MANAGER FOR COUNTRY MUSIC TELEVISION QUOTE THANK YOU QUOTE HE GUSHED CMT HAS CHANGED MY LIFE MERCURY RECORDS HAD RELEASED MR. CYRUS'S ACHY BREAKY HEART TO THE TWENTY FOUR HOUR COUNTRY MUSIC CABLE NETWORK WEEKS BEFORE GIVING IT TO RADIO STATIONS THAT CREATED TREMENDOUS PENT UP DEMAND WHEN THE SONG FINALLY DID HIT THE CHARTS THE COMPACT DISK THAT CONTAINED IT BECAME THE FASTEST RISING ALBUM DEBUT IN BILLBOARD MAGAZINE'S HISTORY ECLIPSING EVEN THE BEATLES' NINETEEN SIXTY THREE LAUNCH WE PUT THE BOOSTER ROCKETS UNDER COUNTRY MUSIC SAYS DAVID HALL CMT'S PRESIDENT IT HAS BEEN SOME LIFTOFF COUNTRY RECORD SALES CLIMBED TO SEVENTEEN PERCENT OF THE TOTAL MARKET IN NINETEEN NINETY TWO FROM ABOUT NINE PERCENT IN NINETEEN NINETY ACCORDING TO THE RECORDING INDUSTRY ASSOCIATION OF AMERICA CMT'S MAJORITY OWNER GAYLORD ENTERTAINMENT COMPANY HAS HAD A SIMILAR SURGE FOR YEARS THE COMPANY WHICH OWNED NASHVILLE'S GRAND OLE OPRY THE ADJACENT HOTEL AND THEME PARK AND ASSORTED MEDIA PROPERTIES SEEMED LITTLE MORE THAN A BACKWATER MEDIA OUTLET CATERING MOSTLY TO A WORKING CLASS CROWD FROM THE SOUTH BUT RECENTLY GAYLORD LIKE A GLITTERY RHINESTONE HAS ATTRACTED ATTENTION IN BOTH HOLLYWOOD AND WALL STREET IN THE PAST SEVERAL YEARS IT HAS BECOME AN INFLUENTIAL MEDIA AND ENTERTAINMENT EMPIRE AND VERY PROFITABLE ITS NET INCOME SOARED TO TWENTY NINE MILLION DOLLARS IN NINETEEN NINETY TWO FROM NEARLY TWO MILLION DOLLARS IN NINETEEN NINETY ONE ITS REVENUE ROSE TO SIX HUNDRED FORTY THREE MILLION DOLLARS FROM SIX HUNDRED ONE MILLION DOLLARS FOR NINETEEN NINETY THREE ANALYSTS EXPECT A PROFIT OF ABOUT THIRTY EIGHT MILLION DOLLARS BEFORE EXTRAORDINARY ITEMS ON REVENUE OF MORE THAN SEVEN HUNDRED MILLION DOLLARS GAYLORD'S HUGE OPRYLAND HOTEL HAS AN OCCUPANCY RATE RUNNING ABOUT EIGHTY FIVE PERCENT THAT IS THE ENVY OF THE INDUSTRY ITS THEME PARK IS A MECCA FOR COUNTRY MUSIC FANS FROM TUSCALOOSA TO TOKYO PARTLY BECAUSE OF GAYLORD'S BUSINESSES NASHVILLE HAS BECOME AN EVEN MORE POWERFUL MAGNET FOR SUCH STARS AS GARTH BROOKS DOLLY PARTON AND THE JUDDS AND LARGELY BECAUSE OF THEM THE CITY HAS BECOME A MAJOR TOURIST DESTINATION BUT THE PROPERTIES THAT HAVE REALLY PUT GAYLORD ON THE MAP ARE ITS TWO CABLE TELEVISION NETWORKS CMT A KIND OF M. T. V. FOR COUNTRY MUSIC IS ONE OF THE FASTEST GROWING NETWORKS ON CABLE T. V. ITS SUBSCRIBERSHIP HAS NEARLY TRIPLED TO TWENTY FIVE MILLION HOMES SINCE NINETEEN NINETY ONE AND THE NASHVILLE NETWORK IS A COUNTRY LIFESTYLE STATION WHOSE PRIME TIME RATINGS NOW TOP THOSE OF M. T. V. THE TWO NETWORKS ARE THE MAIN REASON GAYLORD'S STOCK HAS MORE THAN DOUBLED AND SPLIT ONCE SINCE ITS INITIAL PUBLIC OFFERING IN NINETEEN NINETY ONE THEY ARE ALSO WHY THE COMPANY IS RUMORED TO BE A TAKEOVER TARGET IF THE OKLAHOMA BILLIONAIRE WHO CONTROLS MOST OF ITS STOCK WOULD EVER PART WITH IT GAYLORD'S SUCCESS MAY BE MOSTLY DUE TO SERENDIPITY AS THE BRAWL FOR PARAMOUNT COMMUNICATIONS INCORPORATED ATTESTS THE MARKET FOR CHOICE PROGRAMMING ASSETS HAS NEVER BEEN HOTTER MOREOVER THE COUNTRY MUSIC AUDIENCE HAS SWELLED TO FORTY TWO PERCENT OF THE U. S. ADULT POPULATION ROUGHLY TRIPLING IN THE PAST DECADE ACCORDING TO INDUSTRY ESTIMATES THAT MAY HAVE AS MUCH TO DO WITH AGING BABY BOOMERS AND THEIR DISENCHANTMENT WITH ROCK MUSIC AS WITH ANY CLEVER MARKETING MOVES BY GAYLORD BUT GAYLORD DID PROVIDE THE GENRE WITH THE MEDIA EXPOSURE IT NEEDED TO GET OUT OF THE BACKWOODS THESE PEOPLE REALLY KNOW WHAT THEY ARE WHETHER THEY ARE SMART OR LUCKY THEY HAVE ACHIEVED A POSITION IN A MARKET THAT IS EXPLODING WORLD WIDE SAYS LARRY HAVERTY A MONEY MANAGER AT STATE STREET RESEARCH A BIG INSTITUTIONAL SHAREHOLDER THIS MARKS A BIG SWITCH FROM THE EARLY NINETEEN EIGHTIES WHEN COUNTRY MUSIC WAS STILL CONSIDERED LARGELY REDNECK THEN A MAJOR HIT BY A WELL KNOWN PERFORMER SUCH AS WILLIE NELSON MIGHT SELL A MILLION RECORDS COMPARED WITH MICHAEL JACKSON'S THRILLER ALBUM OF NINETEEN EIGHTY THREE WHICH SOLD FORTY TIMES THAT THE GRAND OLE OPRY AND ITS RADIO SHOW WERE OWNED BY AN INSURANCE COMPANY NLT CORPORATION PARTLY AS VEHICLES FOR ADVERTISING INSURANCE POLICIES IN THE EARLY NINETEEN EIGHTIES WHEN THE OPRYLAND HOLDINGS WERE PUT ON THE BLOCK FOLLOWING A BUYOUT OF NLT WALT DISNEY COMPANY KOHLBERG KRAVIS ROBERTS AND COMPANY AND MEMBERS OF THE ROCKEFELLER FAMILY ALL TOOK A PASS BUT NOT EDWARD L. GAYLORD AN OKLAHOMA BILLIONAIRE WHO HAD MADE A FORTUNE IN THE NEWSPAPER BUSINESS AND HAPPENED TO BE AN UNABASHED DEVOTEE OF QUOTE HEE HAW QUOTE HE BOUGHT THE OPRYLAND HOLDINGS AND ALSO BOUGHT INTO THE VISION OF ITS PRESIDENT E. W. BUD WENDELL FOR A COUNTRY MUSIC AND LIFESTYLE CABLE NETWORK ALL OF A SUDDEN WE WOKE UP TO THE FACT THAT WE HAD AN OPPORTUNITY TO PROMOTE COUNTRY MUSIC NATIONALLY AS OPPOSED TO REGIONALLY SAYS MR. WENDELL WHO DESPITE PROPPING AN ACOUSTIC GUITAR NEAR HIS DESK STILL DRESSES MORE LIKE AN INSURANCE EXECUTIVE THAN A COUNTRY MUSIC MOGUL HE IS NOW PRESIDENT AND CHIEF EXECUTIVE OF GAYLORD AT FIRST THE NASHVILLE NETWORK GOT A TEPID RECEPTION FROM ADVERTISERS IT LOST TENS OF MILLIONS OF DOLLARS BEFORE TURNING A PROFIT IN NINETEEN EIGHTY SEVEN BUT GAYLORD EXECUTIVES KNEW THEY WERE ON TO SOMETHING AS SOON AS THEY WALKED INTO THE SAVOY HOTEL IN NEW YORK CITY FOR TNN'S ROLLOUT PARTY THE NEW NETWORK PLAYED TO THE HARDCORE COUNTRY AUDIENCE A CONSERVATIVE BLUE COLLAR GROUP THAT TENDS TO SPEND WEEKENDS FISHING HUNTING OR CHEERING ON DRAG RACERS GAYLORD ROLLED OUT COUNTRY MUSIC VARIETY SHOWS SUCH AS NASHVILLE NOW WHICH MADE ITS HOST RALPH EMERY THE JOHNNY CARSON OF THE PICKUP TRUCK CIRCUIT AND CATAPULTED MR. EMERY'S AUTOBIOGRAPHY TO NUMBER TWO ON THE NEW YORK TIMES BESTSELLER LIST ON WEEKENDS THE NASHVILLE NETWORK WAS DOMINATED BY OUTDOORSPORTS SHOWS RANGING FROM SWAMP BUGGY RACING TO MORE MAINSTREAM ACTIVITIES LIKE BASS FISHING AND AUTO RACING THE NETWORK BECAME A HIT WITH ADVERTISERS BY DELIVERING THE HEARTLAND AUDIENCE A HUGE GROUP PARTICULARLY LOYAL TO AMERICAN MADE PRODUCTS IT'S NOT THAT THEY HAVE SOMETHING THAT CAN'T BE GOTTEN ELSEWHERE IT'S THAT THEY HAVE IT CONCENTRATED SAYS DAVID MARTIN CHIEF EXECUTIVE OFFICER OF PENTACOM INCORPORATED A DETROIT BASED MEDIA PLANNING AND BUYING AGENCY FOR CHRYSLER CORPORATION A BIG TNN ADVERTISER TNN ALSO BEGAN TO CHANGE THE DYNAMICS OF COUNTRY MUSIC BEFORE QUOTE IT WOULD TAKE ARTISTS FIVE TO SEVEN YEARS OF PLAYING COUNTY FAIRS AND SCHOOL AUDITORIUMS BEFORE THEY COULD BREAK NATIONALLY QUOTE SAYS ED BENSON EXECUTIVE DIRECTOR OF THE COUNTRY MUSIC ASSOCIATION TNN CONSIDERABLY SHORTENED THAT TIME FRAME BUT EVEN AS GAYLORD WAS PLAYING TO THE HEARTLAND COUNTRY MUSIC WAS BEGINNING TO MOVE WAY BEYOND THAT IT WAS SLOWLY ATTRACTING A MUCH YOUNGER HIPPER CROWD LURED IN PART BY YOUNGER COUNTRY STARS WHO HAD SHED THE DOLLY PARTON FLOUNCES AND THE PORTER WAGNER SPANGLES AND WERE BEING GROOMED BY WARDROBE CONSULTANTS AND MEDIA COACHES EVEN MORE SURPRISINGLY IT WAS GOING MORE UPSCALE AND MAINSTREAM AS BABY BOOMERS WITH BABIES OF THEIR OWN TURNED OFF TO GRUNGE ROCK AND HEAVY METAL IN FAVOR OF COUNTRY'S MORE TRADITIONAL THEMES BETWEEN NINETEEN EIGHTY EIGHT AND NINETEEN NINETY SALES OF COUNTRY RECORDS JUMPED FIFTY SIX PERCENT AS SALES OF ROCK AND ROLL RECORDS SLUMPED FIVE PERCENT GAYLORD WAS SOMEWHAT AMBIVALENT ABOUT THE NEWCOMERS IT DIDN'T WANT TO DO ANYTHING TO TURN OFF ITS CORE FOLLOWERS BUT IT WANTED A PIECE OF THE ACTION IN NINETEEN NINETY ONE IT ACQUIRED A SIXTY SEVEN PERCENT STAKE IN A COUNTRY MUSIC NETWORK THAT HAD BEEN LAUNCHED BY LOCAL ENTREPRENEURS AND WAS CALLED COUNTRY MUSIC TELEVISION GROUP W. SATELLITE COMMUNICATIONS A WESTINGHOUSE ELECTRIC CORPORATION UNIT OWNS THE REST GAYLORD QUICKLY TRANSFORMED THE NETWORK INTO CMT WITH SPLASHY GRAPHICS AND ROUND THE CLOCK MUSIC VIDEOS OF CHART TOPPERS SUCH AS REBA MCENTIRE AND GEORGE STRAIT AND SEXY YOUNG COUNTRY STARS SUCH AS DWIGHT YOAKAM AND ALAN JACKSON WHO GOT HIS START AS A TNN MAILMAN THE NEW CHANNEL ATTRACTED A WHOLE NEW CROWD SOME INDUSTRY EXECUTIVES BELIEVE AS T. V. VIEWERS SCANNING THE CHANNELS WERE OFTEN FOOLED INTO THINKING THEY WERE WATCHING M. T. V. SUDDENLY THEY SEE IT'S NOT SO UNHIP TO LIKE COUNTRY SAYS SCOTT BORCHETTA A VICE PRESIDENT OF M. C. A. RECORDS IN NASHVILLE MANY BELIEVE CMT HELPED ACCELERATE THE MARKET'S GROWTH BY NINETEEN NINETY THREE THE EIGHTEEN TO THIRTY FOUR AGE GROUP AND PEOPLE EARNING MORE THAN SIXTY THOUSAND DOLLARS A YEAR HAD BECOME THE FASTESTGROWING SEGMENTS OF THE COUNTRY MUSIC AUDIENCE AND THE GENRE WAS GAINING POPULARITY OUTSIDE THE SOUTH THE COUNTRY MUSIC STRONGHOLD THE NORTHEAST SHOWED A FORTY EIGHT PERCENT JUMP LAST YEAR IN COUNTRY MUSIC FANS C. M. A. SAYS WHILE THE WEST HAD A NINETEEN PERCENT INCREASE VIDEO HAS PLAYED A HUGE ROLE IN THOSE GAINS MR. BORCHETTA SAYS THE OVERSEAS MARKET HAS BEEN SURPRISING TOO WHEN GAYLORD LAUNCHED CMT EUROPE IN OCTOBER NINETEEN NINETY TWO ITS NASHVILLE EXECUTIVES PREPARED A MILLION DOLLAR MARKETING CAMPAIGN HOPING TO SLOWLY CULTIVATE A FOLLOWING AND REACH A MODEST GOAL OF ONE MILLION HOMES BY THE END OF LAST YEAR THEY FOUND TO THEIR ASTONISHMENT A READYMADE INTERNATIONAL AUDIENCE LONG ENAMORED OF AMERICA'S COWBOY CULTURE CMT EUROPE HAS SIGNED UP MORE THAN EIGHT MILLION SUBSCRIBERS WITH SOME IN SUCH UNLIKELY PLACES AS ISRAEL RUSSIA AND SCANDINAVIA PERHAPS THE ONLY CLOUD ON THE COMPANY'S HORIZON IS THE FICKLE TASTE OF MOST CONSUMERS WHO OFTEN DROP FADS AS FAST AS THEY CAN SAY DISCO BUT COUNTRY MUSIC PROPONENTS CONTEND THAT THE MUSIC WHICH PREDATES VIRTUALLY ALL OTHER FORMS OF POPULAR MUSIC IS NO PASSING FANCY AND WILL GAIN MOMENTUM AS CABLE CHANNELS AND RADIO STATIONS PENETRATE MORE MARKETS ANOTHER QUESTION IS WHAT IS TO BECOME OF AN ENTERPRISE WHOSE LEADERS ARE GETTING ON IN YEARS MR. GAYLORD IS SEVENTY FOUR AND MR. WENDELL SIXTY SIX AND PARTLY FOR THAT REASON THE COMPANY IS FREQUENTLY MENTIONED AS A TAKEOVER CANDIDATE PARTLY TO PUT SUCH TALK TO REST GAYLORD BROUGHT IN A YOUNGER BUT SEASONED CHIEF OPERATING OFFICER RICHARD H. EVANS WHO HAS RUN BOTH MADISON SQUARE GARDEN AND RADIO CITY MUSIC HALL THE FORTY NINE YEAR OLD MR. EVANS SAYS HIS JOB IS TO HELP PLAN A CHANGING OF THE GUARD THE RECLUSIVE MR. GAYLORD WHOSE FAMILY CONTROLS SIXTY PERCENT OF THE VOTING STOCK AND FORTY FIVE PERCENT OF THE EQUITY IN THE COMPANY DECLINED TO BE INTERVIEWED DOW JONES AND COMPANY PUBLISHER OF THE WALL STREET JOURNAL HAS A MINORITY INTEREST IN AN ELECTRONIC PUBLISHING SUBSIDIARY OF ONE OF MR. GAYLORD'S PRIVATE COMPANIES MR. WENDELL SAYS HE HIMSELF PLANS TO BE AROUND FOR AT LEAST THREE MORE YEARS THE COMPANY HAS GIVEN HIM THE FINANCIAL INCENTIVES TO DO SO AND BESIDES HE SAYS I REALLY WOULD LIKE TO SEE US GET COUNTRY AROUND THE WORLD MR. WENDELL SAYS THE COMPANY HASN'T ATTRACTED ANY SIGNIFICANT ACQUISITION ATTENTION I GUESS WE'RE TOO SMALL HE SAYS QUOTE IF WE ARE A TARGET I'M NOT AWARE OF IT QUOTE SO FOR NOW THE EXECUTIVES SAY THEY PLAN TO CONCENTRATE ON GROWTH AND GENERATE A FIFTEEN PERCENT AVERAGE ANNUAL INCREASE IN OPERATING CASH FLOW TO DO THAT GAYLORD WILL FURTHER ITS PUSH OVERSEAS CMT'S INTERNATIONAL ARM COULD ULTIMATELY BE BIGGER THAN ANYTHING WE'RE DOING HERE SAYS TERRY LONDON CHIEF FINANCIAL OFFICER BUT GAYLORD ISN'T IGNORING NASHVILLE IN THE LARGEST CONSTRUCTION PROJECT IN THE CITY'S HISTORY GAYLORD IS EXPANDING THE OPRYLAND HOTEL WHICH ALREADY HAS ONE THOUSAND EIGHT HUNDRED NINETY ONE ROOMS ADDING A THOUSAND MORE ROOMS PLUS CONVENTION SPACE AND BUILDING A WATERWAY THAT WILL ALLOW WATER TAXIS TO FERRY HOTEL GUESTS DOWNTOWN GAYLORD IS ALSO TRYING TO BRING NATIONAL BASKETBALL ASSOCIATION AND NATIONAL HOCKEY LEAGUE TEAMS TO THE CITY THE COMPANY ALSO INTENDS TO CAPITALIZE ON ITS COUNTRY FRANCHISE IN MANY WAYS IT WILL CONTINUE TO BOOST MARKETING OF THE ACUFF ROSE MUSIC CATALOG IT BOUGHT IN NINETEEN EIGHTY FIVE WHICH INCLUDES THE WORK OF HANK WILLIAMS SENIOR THE EVERLY BROTHERS AND ROY ORBISON IT PLANS TO LAUNCH A RESTAURANT SLASH MUSIC HALL CHAIN CALLED THE WILDHORSE SALOON IT HOPES TO EXPAND IN T. V. HOME SHOPPING AND WOULD LIKE TO ACQUIRE MORE TOURISM AND SPORTS CONCERNS POSSIBLY INCLUDING OPERATIONS ON THE SCALE OF RADIO CITY MUSIC HALL OR THE DAYTONA FIVE HUNDRED NASCAR RACES MR. EVANS SAYS IT IS ALSO WORKING TO DEVELOP NEW CABLE NETWORKS POSSIBLY IN THE OUTDOOR SPORTS AREA TO ROLL OUT WHEN CABLE OPERATORS OPEN UP MORE CHANNELS TO FINANCE SOME OF THESE PROJECTS THE COMPANY IS TRYING TO SELL THE TWENTY SEVEN CABLE SYSTEMS IT OPERATES IN CALIFORNIA NORTH CAROLINA AND SOUTH CAROLINA A MOVE THAT IT SAYS COULD RAISE AS MUCH AS FIVE HUNDRED MILLION DOLLARS FOR NOW AT LEAST MR. WENDELL DISCLAIMS ANY INTEREST IN DIVERSIFYING OUTSIDE THE COUNTRY LIFESTYLE MARKET WE'VE PRETTY WELL DEFINED OUR DIRECTION HE SAYS WE'VE TRIED TO STICK TO OUR KNITTING COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE YOUR ARTICLE ABOUT ME ON JANUARY TWELFTH QUOTE PANKAU P. I. LESS THAN MEETS THE EYE QUOTE REFERS TO STATEMENTS ROBERT PACK HAS MADE ABOUT ME I WILL REFUTE THOSE FALSE INACCURATE AND MISLEADING STATEMENTS GOVERNMENT RECORDS ALONE DISPROVE SOME OF THE INFORMATION CONTAINED IN THE ARTICLE FOR EXAMPLE I WILL FURNISH THE COURT AND THE ARBITRATION PANEL VARIOUS MILITARY RECORDS THAT CONCLUSIVELY SHOW THAT I WAS A MEMBER OF THE SPECIAL FORCES ALSO KNOWN AS THE GREEN BERETS AND THAT I HAD A DISTINGUISHED MILITARY SERVICE RECORD CONTRARY TO THE CLAIMS OF ROBERT PACK AND OTHER SOURCES C. F. INCOME PARTNERS L. P. SAID IT SIGNED A DEFINITIVE AGREEMENT TO SELL THE ASSETS OF THE PARTNERSHIP TO AN AFFILIATE OF J. M. B. REALTY CORPORATION CHICAGO AND APOLLO REAL ESTATE ADVISORS L. P. NEW YORK IN A TRANSACTION THAT AFTER CERTAIN ADJUSTMENTS IS VALUED AT ONE HUNDRED SIXTY SIX POINT FIVE MILLION DOLLARS THE TROUBLED PARTNERSHIP WHOSE INVESTMENT REAL ESTATE INCLUDES SHOPPING CENTERS AND APARTMENT BUILDINGS SAID IN NOVEMBER THAT A ONE HUNDRED EIGHTY TWO POINT FIVE MILLION DOLLAR PACT TO SELL MOST OF ITS ASSETS TO AMERICAN CONTINENTAL PROPERTIES GROUP HAD FALLEN THROUGH C. F. INCOME PARTNERS BASED IN LOS ANGELES SAID IT PLANS TO DISSOLVE THE PARTNERSHIP AND DISTRIBUTE A TOTAL OF ABOUT THIRTEEN POINT TWO MILLION DOLLARS OR ONE DOLLAR A UNIT TO UNIT HOLDERS IF THE DEAL IS COMPLETED COMPLETION OF THE DEAL IS SUBJECT TO CONDITIONS INCLUDING APPROVAL BY UNIT HOLDERS AND SETTLEMENT OF LITIGATION IT'S EVERYBODY'S SECOND QUESTION WHEN ANY TWO QUAKE SHAKEN SOULS ENCOUNTER EACH OTHER IN THE AFTERMATH OF MONDAY'S EARTHQUAKE HERE ONCE THE PRELIMINARIES ARE OVER HOW ARE YOU YOUR FAMILY YOUR HOUSE THE NEXT TOPIC IS HOW ARE YOU GOING TO GET TO WORK TRAVEL DISRUPTIONS IN A REGION WHOSE CULTURE HAS BEEN DEFINED BY THE AUTOMOBILE WILL NOT ONLY DRASTICALLY CHANGE PEOPLE'S DAILY LIVES BUT WILL HAVE LINGERING ECONOMIC CONSEQUENCES AS WELL THE FREEWAY SYSTEM HAS SIX MAJOR BREAKS IN IT MOST SEVERELY AFFECTING TWO MAJOR CALIFORNIA LIFELINES THE SANTA MONICA FREEWAY THE MAJOR EAST WEST ARTERY IN LOS ANGELES AND THE GOLDEN STATE FREEWAY THE STATE'S MAJOR NORTH SOUTH ROUTE THE SANTA MONICA IS ONE OF THIS CITY'S BUSIEST COMMUTER FEEDERS LINKING LOS ANGELES'S AFFLUENT WEST SIDE TO ITS DOWNTOWN THE GOLDEN STATE IS A CRUCIAL TRUCK FILLED LINK TO THE FRUIT AND VEGETABLE GROWERS OF THE SAN JOAQUIN VALLEY AND THE HIGH TECHNOLOGY AND OTHER MANUFACTURERS OF NORTHERN CALIFORNIA THE GOLDEN STATE IS BUSIER STILL WHEN THOUSANDS OF COMMUTERS WHO LIVE IN THE SANTA CLARITA AND ANTELOPE VALLEYS HEAD SOUTH TOWARD LOS ANGELES EVEN BEFORE THE QUAKE THE CONNECTING ANTELOPE VALLEY FREEWAY WHICH CARVES THROUGH STEEP MOUNTAINS OFTEN WOULD BE BUMPER TO BUMPER BEFORE DAYBREAK YESTERDAY LARGE CONSTRUCTION EQUIPMENT BEGAN THE TASK OF TEARING DOWN THE AREA'S FRACTURED ROADWAYS AUTHORITIES SAID THEY HOPED TO PUT THE CONSTRUCTION PROCESS ON THE FAST TRACK SO THAT REPAIRS WOULD BE COMPLETED BY THE END OF THE YEAR AT A COST OF ABOUT ONE HUNDRED MILLION DOLLARS ACCORDING TO PRELIMINARY ESTIMATES THE MAJOR SANTA MONICA FREEWAY COLLAPSE WILL CLOG ALREADY BUSY COMMERCIAL STREETS NEARBY THERE'S ONLY ONE REAL ALTERNATE ROAD FOR THE GOLDEN STATE AND IT WAS JAMMED YESTERDAY EVEN WHEN MOST PEOPLE STAYED HOME FROM WORK THE ONLY OTHER DRIVING POSSIBILITIES ARE HAIR RAISING ONE HOUR DRIVES THOUSANDS OF FEET UP INTO THE SAN GABRIEL MOUNTAINS OFTEN ON ICY ROADS OR WIDE DIVERSIONS TO THE EAST OR TAKING PUBLIC TRANSPORTATION NICK WALSH AN OFFICIAL WITH THE FEDERAL HIGHWAY ADMINISTRATION SAYS THE TOPPLED SECTIONS OF HIGHWAY WILL HAVE A QUOTE SIGNIFICANT IMPACT QUOTE ON THE ECONOMICS OF TRUCKING IN SOUTHERN CALIFORNIA HE SAYS THE CLOSURE OF THE GOLDEN STATE WILL ADD ABOUT THREE HOURS TO THE TYPICAL TEN HOUR TRUCKERS' RUN FROM SAN JOSE TO ANAHEIM MAKING IT ILLEGAL FOR A SINGLE DRIVER TO MAKE THE TRIP WITHOUT A BREAK THAT'LL BE REFLECTED IN PRICES TO CONSUMERS HE ADDS IN THE EARTHQUAKE'S WAKE THERE HAS BEEN MUCH TALK ABOUT INCREASED USE OF THE CITY'S PUBLIC TRANSPORTATION SYSTEM SUCH AS IT IS OFFICIALS HOPE EMPLOYERS WILL STAGGER WORKING HOURS TO LESSEN THE RUSH HOUR CRUSH INCREASED RIDE SHARING IS EXPECTED BUT IN A CITY WHERE NIGHTMARISH TRAFFIC ALREADY IS A MUNICIPAL OBSESSION AS WELL AS A PIECE OF CULTURAL IDENTITY THE PROSPECT OF A CRIPPLED FREEWAY SYSTEM SEEMS IMPOSSIBLE TO CONTEMPLATE SOME WILL HAVE TO SEEK RADICAL ANSWERS THERE IS REALLY NO SOLUTION SAYS ONE COMMUTER BRAD MARKS A LOT OF PEOPLE ARE GOING TO HAVE TO FIND WORK IN THE OTHER DIRECTION OR JUST PLAIN MOVE MARY ANN MANDY IS THINKING ABOUT RENTING AN APARTMENT CLOSER TO WORK SHE COMMUTES WITH THIRTEEN OTHERS IN A VAN FOR HER EMPLOYER A HEALTH MAINTENANCE COMPANY AND THE COMMUTE CURRENTLY TAKES ONE AND A HALF HOURS SHE FIGURES THAT IT WILL NOW TAKE FOUR THAT'S EACH WAY I HAVE NO IDEA WHAT I'M GOING TO DO SHE SAYS THE TRUE TEST MAY NOT COME UNTIL NEXT WEEK YESTERDAY WITH BUSINESSES AND SCHOOLS HEEDING A MAYORAL CALL TO REMAIN CLOSED MANY FREEWAYS WERE EERILY EMPTY IT WAS REMINISCENT OF THE NINETEEN EIGHTY FOUR OLYMPICS HERE WHEN PROGNOSTICATIONS OF NIGHTMARISH TRAFFIC KEPT PEOPLE OFF THE ROADS THE REST OF THIS WEEK IS GOING TO PLAY LIKE A HOLIDAY WEEK SAYS CHRIS SIEROTY A PRODUCER FOR METRO TRAFFIC CONTROL WHICH PROVIDES TRAFFIC REPORTS TO FORTY FIVE LOCAL RADIO STATIONS EVEN SO THERE WERE LONG DELAYS YESTERDAY AT SEVERAL SPOTS WHERE FREEWAY TRAFFIC WAS DIVERTED SOMETIMES BY NATIONAL GUARD TROOPS ONTO SURFACE STREETS ANGELENOS ALREADY GO TO GREAT LENGTHS TO MAKE THEIR COMMUTES WORK MR. MARKS HEAD OF AN EXECUTIVE SEARCH FIRM LIVES ON A RANCH IN AN AREA OF SANTA CLARITA KNOWN AS CANYON COUNTRY ON THE OTHER SIDE OF A CRUMBLED FREEWAY INTERSECTION FOR MR. MARKS'S ONE HOUR COMMUTE INTO CENTURY CITY EVERY DAY HE ALREADY MAKES ADJUSTMENTS TO SAVE TIME SUCH AS BREAKFAST MEETINGS IN THE SAN FERNANDO VALLEY ON HIS WAY IN SO HE CAN GO QUOTE OVER THE HILL QUOTE INTO WEST LOS ANGELES AT NINE THIRTY WHEN THE TRAFFIC IS LETTING UP HE HAS DINNER MEETINGS AT NIGHT TO MISS RUSH HOUR TRAFFIC GOING HOME NOW HE SAYS I DON'T KNOW HOW I'M GOING TO GET TO WORK IT'S NO WAY TO RUN A BUSINESS OLD HABITS WILL DIE HARD FOR SOUTHERN CALIFORNIA DRIVERS ALTHOUGH THE LINGERING RECESSION HERE HAS REDUCED TRAFFIC JAMS A BIT IN THE PAST FEW YEARS COMMUTERS STILL AVERAGE MORE THAN THIRTY MINUTES EACH WAY THE PERCENTAGE OF THOSE DRIVING SOLO REMAINS STEADY AT ABOUT EIGHTY PERCENT ONLY FIVE PERCENT RIDESHARE THREE PERCENT TAKE PUBLIC TRANSPORTATION IF THERE'S ANYTHING GOOD TO COME OUT OF ALL THIS SAYS STEVE SAVILLE A SPOKESMAN FOR CALTRANS THE STATE TRANSPORTATION AGENCY IT'S THAT PEOPLE HERE WILL LEARN THAT THERE'S ANOTHER WAY TO GET AROUND OTHER THAN USING THEIR CARS OR BEING A SINGLE PERSON IN A CAR AN OFFICIAL OF THE SAN FRANCISCO BAY AREA'S RAPID TRANSIT SYSTEM SAYS THAT FOLLOWING THE NINETEEN EIGHTY NINE LOMA PRIETA EARTHQUAKE RIDERSHIP INCREASED TO AN AVERAGE OF THREE HUNDRED THIRTY FIVE THOUSAND A DAY FROM TWO HUNDRED NINETEEN THOUSAND AFTER DOWNED BRIDGES WERE FIXED RIDERSHIP STABILIZED AT ABOUT TWO HUNDRED FIFTY THOUSAND THE EARTHQUAKE HAD MORE IMPACT ON RIDERSHIP THAN ANY EVENT IN THE LAST TWENTY YEARS ADDS MICHAEL BURNICK VICE CHAIRMAN OF THE BART REGIONAL TRANSIT BOARD CLEARLY COMMUTERS WILL HAVE TO ADAPT MELISSA HARNETT WHO LIVES IN AGUA DULCE AND WORKS MORE THAN FORTY MILES AWAY DOWNTOWN AS A LITIGATION ATTORNEY IS ADJUSTING HER OWN LIFE I'VE GOT A COURT APPEARANCE LATER THIS WEEK AT EIGHT THIRTY IN THE MORNING AND IT LOOKS LIKE I'D HAVE TO LEAVE AT FOUR A. M. SHE SAYS INSTEAD SHE THINKS THAT THE NIGHT BEFORE SHE'LL JUST STAY IN TOWN WITH HER FATHER GENERAL PUBLIC UTILITIES CORPORATION REPORTED A FORTY ONE PERCENT DECLINE IN FOURTH QUARTER NET INCOME BECAUSE OF INCREASED OPERATING COSTS AND WRITE DOWNS RELATED TO ITS DEPARTURE FROM A PROJECT IN PENNSYLVANIA THE PARSIPPANY N. J. UTILITY HOLDING COMPANY HAD NET INCOME OF THIRTY ONE POINT THREE MILLION DOLLARS OR TWENTY SEVEN CENTS A SHARE DOWN FROM FIFTY TWO POINT SEVEN MILLION DOLLARS OR FORTY SEVEN CENTS A SHARE A YEAR EARLIER REVENUE INCREASED TWO POINT FIVE PERCENT TO EIGHT HUNDRED SIXTY ONE POINT FIVE MILLION DOLLARS FROM EIGHT HUNDRED FORTY POINT TWO MILLION DOLLARS G. P. U. TOOK A TWENTY FIVE MILLION DOLLAR WRITE DOWN IN THE QUARTER STEMMING FROM ITS INVESTMENT IN DUQUESNE LIGHT COMPANY'S PHILLIPS GENERATING STATION IN WESTERN PENNSYLVANIA G. P. U. ABANDONED THE PROJECT WHEN NEW JERSEY STATE REGULATORS WOULDN'T PERMIT ITS JERSEY CENTRAL POWER AND LIGHT COMPANY UNIT TO PURCHASE A FIFTY PERCENT INTEREST IN THE FACILITY FOR THE YEAR G. P. U. WHICH ALSO OWNS METROPOLITAN EDISON COMPANY AND PENNSYLVANIA ELECTRIC COMPANY REPORTED NET INCOME OF TWO HUNDRED NINETY FIVE POINT SEVEN MILLION DOLLARS OR TWO DOLLARS AND SIXTY FIVE CENTS A SHARE UP EIGHTEEN PERCENT FROM TWO HUNDRED FIFTY ONE POINT SIX MILLION DOLLARS OR TWO DOLLARS AND TWENTY SEVEN CENTS A SHARE A YEAR EARLIER REVENUE INCREASED FOUR POINT SEVEN PERCENT TO THREE POINT SIX BILLION DOLLARS FROM THREE POINT FOUR THREE BILLION DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY G. P. U. SHARES WERE UNCHANGED AT TWENTY NINE POINT THREE SEVEN FIVE DOLLARS BRUNSWICK CORPORATION SAID IT WILL PAY THE INTERNAL REVENUE SERVICE ABOUT FIFTY FIVE MILLION DOLLARS TO SETTLE A DISPUTE OVER THE DEDUCTIBILITY OF ABOUT FIVE HUNDRED MILLION DOLLARS OF INTANGIBLE ASSETS THE LAKE FOREST ILLINOIS MAKER OF BOATS AND RECREATIONAL PRODUCTS SAID IT HAD MORE THAN ADEQUATELY RESERVED FOR THE TAX PAYMENT WHICH REPRESENTS TAXES AND NET INTEREST FOR NINETEEN EIGHTY SIX THROUGH LAST YEAR BRUNSWICK SAID THE PACT WITH THE I. R. S. WON'T HAVE ANY IMPACT ON ITS NET INCOME THE I. R. S. AGREED TO ALLOW DEDUCTIONS FOR THE ACQUIRED AMORTIZABLE INTANGIBLES AND BRUNSWICK AGREED TO INCREASE THE AMORTIZABLE LIVES OF MOST OF THE ASSETS IT WASN'T THE MOST EXCITING DAY BUT THE STOCK MARKET WASN'T NEARLY AS DULL AS DEPICTED BY THE DOW JONES AVERAGES IN A WALL STREET RARITY BOTH THE DOW JONES INDUSTRIAL AVERAGE AND THE DOW JONES TRANSPORTATION AVERAGE CLOSED UNCHANGED THE INDUSTRIALS AT THREE THOUSAND EIGHT HUNDRED SEVENTY POINT TWO NINE AND THE TRANSPORTATION INDEX AT ONE THOUSAND EIGHT HUNDRED TWENTY TWO POINT FIVE EIGHT IT WAS THE FIRST TIME SINCE JULY TWENTY SEVENTH NINETEEN SIXTY SEVEN THAT THE INDUSTRIAL AND TRANSPORTATION AVERAGES FINISHED FLAT ACCORDING TO NED DAVIS RESEARCH INCORPORATED YESTERDAY'S DOUBLE UNCHANGED SESSION WAS ONLY THE SECOND SINCE NINETEEN TWENTY SIX THE FIRST YEAR FOR WHICH NED DAVIS HAS DATA ELSEWHERE MOST BROAD BASED INDEXES MANAGED MODEST GAINS AND THE NASDAQ COMPOSITE INDEX CREPT UP ZERO POINT EIGHT FOUR OR ZERO POINT ONE ONE PERCENT TO SEVEN HUNDRED NINETY THREE POINT OH TWO A NEW HIGH TOPPING A RECORD THAT WAS SET FRIDAY ADVANCING STOCKS LED DECLINERS ABOUT ONE THOUSAND TWO HUNDRED TEN TO EIGHT HUNDRED NINETY TWO ON THE NEW YORK STOCK EXCHANGE ANALYSTS TIED MUCH OF THE OPTIMISM TO RECENT ENCOURAGING EARNINGS REPORTS AND TO THE MODEST STRENGTH IN BONDS THE TREASURY'S THIRTY YEAR ISSUE ADDED ONE QUARTER POINT PUSHING ITS YIELD DOWN TO SIX POINT TWO SIX PERCENT LOW INTEREST RATES HAVE BEEN ONE OF THE MARKET'S MOST IMPORTANT PROPS BIG BOARD VOLUME TOTALED THREE HUNDRED EIGHT POINT SIX MILLION SHARES COMPARED WITH TWO HUNDRED TWENTY SIX POINT FOUR MILLION SHARES MONDAY THE BIG BOARD COMPOSITE INDEX WAS TWO HUNDRED SIXTY TWO POINT SEVEN SIX UP ZERO POINT FOUR FIVE THE AVERAGE PRICE PER SHARE ROSE SIX CENTS MEANWHILE A SURPRISINGLY STRONG PROFIT READING FROM CHRYSLER AND A SERIES OF SOLID REPORTS FROM SOME OF THE LARGEST U. S. BANKING COMPANIES HELPED SET THE POSITIVE TONE YESTERDAY THE MARKET WAS HIGHER MUCH OF THE DAY BUT PRICES WERE LOCKED IN A NARROW RANGE CHRYSLER POSTED EARNINGS OF TWO DOLLARS AND ELEVEN CENTS A SHARE FOR THE FOURTH QUARTER ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD FORECAST A PROFIT OF JUST ONE DOLLAR AND SIXTY CENTS A YEAR AGO CHRYSLER HAD NET INCOME OF ONE DOLLAR AND TWELVE CENTS AMONG BANKS CITICORP EDGED UP ONE EIGHTH TO FORTY ONE AND ONE QUARTER WELLS FARGO SLIPPED TWO AND ONE HALF TO ONE HUNDRED THIRTY THREE AND FIVE EIGHTHS CHASE MANHATTAN ADDED ONE QUARTER TO THIRTY FIVE AND THREE QUARTERS AND NATIONSBANK LOST ONE HALF TO FORTY NINE AND ONE QUARTER EACH OF THOSE COMPANIES RELEASED IMPROVED EARNINGS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED ZERO POINT ONE SIX OR ZERO POINT ZERO THREE PERCENT TO FOUR HUNDRED EIGHTY ONE POINT NINE FOUR PARAMOUNT COMMUNICATIONS CLIMBED ONE AND ONE QUARTER TO EIGHTY AFTER VIACOM SWEETENED ITS BID FOR THE NEW YORK MEDIA COMPANY VIACOM'S NEW OFFER WAS VALUED AT ABOUT NINE POINT SEVEN BILLION DOLLARS VIACOM'S CLASS B. STOCK FELL ONE AND THREE EIGHTHS TO THIRTY SEVEN AND THREE QUARTERS ON THE AMEX RIVAL BIDDER Q. V. C. NETWORK EASED ONE HALF TO FORTY THREE ON THE NASDAQ STOCK MARKET ON THE BIG BOARD BLOCKBUSTER ENTERTAINMENT SLIPPED ONE QUARTER TO TWENTY SEVEN AND SEVEN EIGHTHS THAT COMPANY HAS AGREED TO MERGE WITH VIACOM COTT FELL TWO AND ONE EIGHTH TO TWENTY FOUR AND SEVEN EIGHTHS ON NASDAQ MABON SECURITIES ANALYST JENNIFER SOLOMON CUT HER OPINION ON THE STOCK TO QUOTE SELL QUOTE FROM QUOTE BUY QUOTE SHE CUT HER ESTIMATE OF THE COMPANY'S FOURTH QUARTER EARNINGS AND SAID SHE WAS CONCERNED ABOUT INCREASED PRICE COMPETITION FROM OTHER CANADIAN BEVERAGE COMPANIES B. M. C. SOFTWARE SLUMPED TWO AND THREE EIGHTHS TO SIXTY AND SEVEN EIGHTHS ON NASDAQ LATE MONDAY THE SUGAR LAND TEXAS COMPANY SAID IT ACQUIRED PATROL SOFTWARE OF REDWOOD SHORES CALIFORNIA AND ITS AUSTRALIAN AFFILIATE FOR THIRTY THREE POINT SEVEN MILLION DOLLARS IN CASH SANTA FE PACIFIC ADDED ONE AND ONE EIGHTH TO TWENTY SIX AND ONE EIGHTH THE SCHAUMBURG ILLINOIS COMPANY'S SANTA FE PACIFIC GOLD UNIT HAD FOURTEEN POINT ONE MILLION OUNCES OF PROVEN AND PROBABLE GOLD RESERVES AT THE END OF LAST MONTH THAT IS UP ONE HUNDRED TWENTY ONE PERCENT FROM THE LEVEL OF SO CALLED CONTAINED OUNCES IT HAD AT THE END OF NINETEEN NINETY TWO PENN CENTRAL SLUMPED ONE AND ONE HALF TO THIRTY ONE AND ONE HALF SALOMON BROTHERS ANALYST MICHAEL FRINQUELLI DOWNGRADED THE CINCINNATI COMPANY'S STOCK TO HOLD FROM BUY CITING INCREASING COMPETITION IN THE AUTOMOBILE INSURANCE MARKET HE ALSO DOWNGRADED HIS RATING ON HORACE MANN EDUCATORS SPRINGFIELD ILLINOIS THAT STOCK EASED ONE QUARTER TO TWENTY THREE AND ONE EIGHTH SARA LEE LOST SEVEN EIGHTHS TO TWENTY THREE AND THREE EIGHTHS ON HEAVY VOLUME OF TWO MILLION SHARES THE COMPANY SAID IT REACQUIRED KIWI BRANDS A SHOE CARE PRODUCTS COMPANY IN SOUTH AFRICA THAT IT HAD SOLD IN NINETEEN EIGHTY SIX BECAUSE OF ECONOMIC SANCTIONS AGAINST THAT COUNTRY TERMS WEREN'T DISCLOSED SARA LEE IN CHICAGO SAID IT DIDN'T KNOW OF ANY REASON FOR THE WEAKNESS IN ITS STOCK PORSCHE A. G. POSTED A WIDER LOSS FOR ITS YEAR ENDED JULY THIRTY FIRST OMITTED ITS DIVIDEND AND FORECAST MORE LOSSES FOR THE CURRENT FISCAL YEAR FEELING THE DOWNTURN IN THE LUXURY CAR MARKET THE GERMAN AUTO MAKER SAID ITS NET LOSS WIDENED TO TWO HUNDRED THIRTY EIGHT POINT EIGHT MILLION MARKS ONE HUNDRED THIRTY SIX POINT FIVE MILLION DOLLARS FROM SIXTY FIVE POINT EIGHT MILLION MARKS A YEAR EARLIER THE DIVIDEND ON COMMON SHARES HAD BEEN OMITTED THE PREVIOUS YEAR AS WELL BUT FOR THE LATEST YEAR PORSCHE ALSO OMITTED THE PREFERRED DIVIDEND A YEAR EARLIER IT HAD PAID OUT TWO POINT FIVE OH MARKS A PREFERRED SHARE FOR THE CURRENT FISCAL YEAR THE COMPANY EXPECTS LOSSES OF ONE HUNDRED FORTY MILLION MARKS TO ONE HUNDRED FIFTY MILLION MARKS BUT PORSCHE YESTERDAY CLAIMED IT IS REBOUNDING QUOTE FROM THE NEXT FISCAL YEAR AT THE LATEST WE SHALL BE OUT OF THE RED AND SHALL AGAIN BE WRITING BLACK FIGURES QUOTE CHAIRMAN WENDELIN WIEDEKING SAID A SURGE OF NEW ORDERS FOR PORSCHE'S REDESIGNED AND RELAUNCHED NINE HUNDRED ELEVEN CARERRA MODEL WILL LEAD TO A BREAK EVEN OPERATING PROFIT IN THE FISCAL YEAR BEGINNING IN AUGUST MR. WIEDEKING SAID THE COMPANY WON'T RETURN TO HEALTHY PROFIT MARGINS HOWEVER UNTIL NINETEEN NINETY SEVEN WITH THE INTRODUCTION OF ITS NEW BOXSTER TWO SEATER MODEL WHICH WILL GO INTO PRODUCTION IN NINETEEN NINETY SIX HE ADDED HONDA MOTOR COMPANY OF JAPAN SAID IT PLANS TO INCREASE ITS PRODUCTION IN THE U. S. AND CANADA BY EIGHTEEN POINT FOUR PERCENT THIS YEAR TO A RECORD FIVE HUNDRED NINETY SEVEN THOUSAND VEHICLES BRISK DEMAND IS EXPECTED IN THE U. S. MARKET AND QUOTE WE WILL PRODUCE CARS AT PLACES WHERE WE CAN SELL QUOTE A HONDA SPOKESMAN SAID HONDA EXPECTS TO MARKET ABOUT SEVEN HUNDRED NINETY THOUSAND CARS IN THE U. S. THIS YEAR UP TEN POINT THREE PERCENT FROM NINETEEN NINETY THREE IT PLANS TO BUILD FOUR HUNDRED NINETY FOUR THOUSAND CARS MOSTLY ACCORD MODELS IN THE U. S. IN NINETEEN NINETY FOUR UP TWENTY TWO POINT THREE PERCENT FROM LAST YEAR AND ONE HUNDRED THREE THOUSAND CARS IN CANADA UP TWO POINT FOUR PERCENT MEANWHILE HONDA'S DOMESTIC PRODUCTION WILL BE REDUCED BY FIVE POINT ONE PERCENT FROM A YEAR EARLIER TO ONE POINT OH NINE MILLION CARS THIS YEAR THE SPOKESMAN SAID IN NINETEEN NINETY THREE HONDA SOLD FIVE HUNDRED SEVENTY NINE THOUSAND ONE HUNDRED TWENTY SEVEN CARS INCLUDING MINI CARS IN JAPAN HONDA HAS A MARKET SHARE OF EIGHT POINT FIVE PERCENT IN JAPAN MAKING IT FOURTH BEHIND TOYOTA MOTOR CORPORATION NISSAN MOTOR COMPANY AND MITSUBISHI MOTORS CORPORATION ING C. OLIVETTI AND COMPANY MILAN REACHED AGREEMENT WITH EMPLOYEE GROUPS TO CUT ONE THOUSAND NINE HUNDRED THIRTY TWO JOBS IN AN EFFORT TO RESTRUCTURE THE FINANCIALLY AILING COMPANY THE COMPUTER AND OFFICE EQUIPMENT MAKER'S AGREEMENT WITH LABOR UNIONS INCLUDES PROVISIONS FOR REDUCED WORKING HOURS WAGE CUTS AND PROFESSIONAL TRAINING MEASURES OLIVETTI HAS BEEN MOVING AWAY FROM INCREASINGLY UNPROFITABLE ACTIVITIES SUCH AS MAKING COMPUTERS TO MORE PROFITABLE BUSINESSES LIKE TELECOMMUNICATIONS AN OLIVETTI LED CONSORTIUM IS SEEN AS A LEADING CANDIDATE TO WIN A SECOND ITALIAN LICENSE TO OPERATE A CELLULAR TELEPHONE NETWORK ALANTEC CORPORATION AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA HAMBRECHT AND QUIST INCORPORATED AND KIDDER PEABODY AND COMPANY COLE NATIONAL CORPORATION AN INITIAL OFFERING OF FIVE MILLION CLASS A COMMON SHARES VIA MERRILL LYNCH AND COMPANY C. S. FIRST BOSTON AND SMITH BARNEY SHEARSON INCORPORATED CORNING INCORPORATED AN AMENDED OFFERING OF EIGHT MILLION COMMON SHARES AN INCREASE FROM ITS PREVIOUS OFFERING OF SIX POINT SEVEN MILLION FEDERAL MOGUL CORPORATION AN OFFERING OF THREE POINT FOUR MILLION COMMON SHARES VIA C. S. FIRST BOSTON AND DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION NEUROBIOLOGICAL TECHNOLOGIES INCORPORATED AN INITIAL OFFERING OF ONE POINT FIVE MILLION COMMON SHARES VIA VAN KASPER AND COMPANY NORTHWEST AIRLINES CORPORATION AN INITIAL OFFERING OF TWENTY MILLION CLASS A COMMON SHARES VIA LEHMAN BROTHERS B. T. SECURITIES CORPORATION C. S. FIRST BOSTON SALOMON BROTHERS AND SMITH BARNEY SHEARSON INCORPORATED EARNINGS NEWS TOOK THE SPOTLIGHT YESTERDAY AS INVESTORS BID UP SMALL COMPANY STOCK PRICES PUSHING TWO KEY INDEXES TO NEW HIGHS THE RUSSELL TWO THOUSAND INDEX GAINED ZERO POINT FOUR FOUR POINT OR ZERO POINT ONE SEVEN PERCENT TO END AT TWO HUNDRED SIXTY TWO POINT FOUR SETTING ITS FIFTH STRAIGHT CLOSING RECORD THE INDEX MEASURES THE PERFORMANCE OF SMALL CAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES AFTER EARLY WEAKNESS THE NASDAQ COMPOSITE INDEX SET A NEW HIGH OF ITS OWN AT SEVEN HUNDRED NINETY THREE POINT OH TWO GAINING ZERO POINT EIGHT FOUR POINT OR ZERO POINT ONE ONE PERCENT FROM MONDAY AND OUTPERFORMING FRIDAY'S RECORD OF SEVEN HUNDRED NINETY TWO POINT THREE ONE NASDAQ ADVANCERS TRAILED DECLINERS ONE THOUSAND FOUR HUNDRED SIXTY SIX TO ONE THOUSAND FOUR HUNDRED NINETY TWO NASDAQ NATIONAL MARKET VOLUME WAS TWO HUNDRED SEVENTY FOUR POINT TWO MILLION SHARES UP FROM MONDAY'S TWO HUNDRED THREE POINT FIVE MILLION OVERALL VOLUME WAS THREE HUNDRED NINETEEN POINT FOUR MILLION SHARES UP FROM TWO HUNDRED FORTY THREE POINT FIVE MILLION IN EARNINGS NEWS BORDEN CHEMICALS AND PLASTICS ROSE ONE AND FIVE EIGHTHS TO ELEVEN AND FIVE EIGHTHS ON THE NEW YORK STOCK EXCHANGE THE COLUMBUS OHIO COMPANY'S FOURTH QUARTER NET INCOME WAS TWELVE CENTS A UNIT UP SHARPLY FROM A YEAR EARLIER TWO CENTS A UNIT ANALYSTS WERE LOOKING FOR EARNINGS OF ONE CENT A UNIT SHARES OF TRANSTECHNOLOGY ROSE SEVEN EIGHTHS OR SIX POINT NINE PERCENT TO A NEW HIGH OF THIRTEEN AND FIVE EIGHTHS IN BIG BOARD TRADING BOOSTED BY THE COMPANY'S MONDAY REPORT OF THIRD QUARTER PER SHARE EARNINGS FROM CONTINUING OPERATIONS OF THIRTY NINE CENTS A SHARE IN THE YEAR EARLIER QUARTER THE UNION N. J. DEVELOPER OF TECHNICAL PRODUCTS HAD A PER SHARE NET FROM CONTINUING OPERATIONS OF TWENTY NINE CENTS TELXON ADVANCED TWO TO TWELVE AND ONE QUARTER AFTER REPORTING THAT ITS FISCAL THIRD QUARTER LOSS NARROWED TO FOUR CENTS A SHARE FROM A YEAR EARLIER SIXTY THREE CENTS A SHARE WALL STREET EXPECTED THE AKRON OHIO MICROPROCESSOR DESIGNER TO POST A PER SHARE LOSS OF FIVE CENTS FISCAL SECOND QUARTER NET INCOME OF TWENTY EIGHT CENTS A SHARE UP FROM A YEAR EARLIER TEN CENTS A SHARE SENT CANNON EXPRESS UP TWO TO FOURTEEN AND THREE QUARTERS CANNON IS A SPRINGDALE ARKANSAS TRUCKING CONCERN GUPTA MENLO PARK CALIFORNIA CLIMBED THREE AND ONE HALF TO TWENTY FOUR AND ONE EIGHTH AFTER MONDAY'S CLOSE THE SOFTWARE COMPANY SAID FOURTH QUARTER PER SHARE EARNINGS WERE TWENTY THREE CENTS ABOVE LAST YEAR'S NINE CENTS AND ANALYSTS' EXPECTATIONS OF TWENTY CENTS ALSO LATE MONDAY POWERSOFT BURLINGTON MASSACHUSETTS REPORTED FOURTH QUARTER OPERATING EARNINGS OF TWENTY FIVE CENTS A SHARE UP FROM A YEAR EARLIER NINETEEN CENTS A SHARE THE NEWS AND A RATING UPGRADE YESTERDAY MORNING FROM PRUDENTIAL SECURITIES LIFTED THE SOFTWARE DEVELOPER'S STOCK FOUR TO FORTY EIGHT BUT JENNY CRAIG DEL MAR CALIFORNIA FELL ONE AND ONE QUARTER TO SEVEN AND ONE HALF AFTER SLIDING ONE AND FIVE EIGHTHS ON MONDAY BEFORE TRADING WAS HALTED AFTER MONDAY'S CLOSE OF MARKETS THE PROVIDER OF WEIGHTLOSS SERVICES SAID IT EARNED FOUR CENTS A SHARE IN ITS FISCAL SECOND QUARTER DOWN FROM THE YEAR EARLIER PERIOD'S TWENTY FIVE CENTS A SHARE INNOVEX SLIPPED ONE AND ONE EIGHTH TO TEN AND ONE HALF AFTER REPORTING THAT FISCAL FIRST QUARTER EARNINGS FROM CONTINUING OPERATIONS FELL TO THIRTEEN CENTS A SHARE FROM A YEAR EARLIER NINETEEN CENTS A SHARE THE HOPKINS MINNESOTA MAKER OF ELECTROMAGNETIC PRODUCTS SAID SECOND QUARTER EARNINGS WILL LIKELY FALL BELOW LAST YEAR'S TWENTY THREE CENTS A SHARE FOR THE PERIOD MARKET WATCHERS SAID A CUT IN AN EARNINGS ESTIMATE FOR OSHKOSH B'GOSH BY A CLEARY GULL REILAND AND MCDEVITT ANALYST MAY HAVE PRESSURED THE STOCK CAUSING A TWO AND THREE EIGHTHS SLIDE TO SIXTEEN AND ONE QUARTER A DAIN BOSWORTH TRADER SAID CLEARY GULL'S ESTIMATES WERE HIGH COMPARED WITH OTHERS ON WALL STREET THE CLEARY GULL ANALYST WAS UNAVAILABLE FOR COMMENT CIRCA PHARMACEUTICALS CLIMBED TWO AND ONE QUARTER TO TWELVE AND SEVEN EIGHTHS ON THE AMERICAN STOCK EXCHANGE BEAR STEARNS PUT AN INITIAL QUOTE BUY QUOTE RATING ON THE COPIAGUE N. Y. COMPANY AND SET A TWELVE MONTH TO EIGHTEEN MONTH PRICE TARGET OF TWENTY DOLLARS AMONG NEW ISSUES PEOPLES BANCORP OF INDIANAPOLIS ROSE TO TWENTY SIX AND SEVEN EIGHTHS FROM YESTERDAY MORNING'S OFFERING PRICE OF TWENTY FIVE AND ONE HALF THE HOLDING COMPANY FOR PEOPLES BANK AND TRUST SAID PROCEEDS ARE EXPECTED TO BE USED FOR GENERAL CORPORATE PURPOSES IN OTHER ACTION MARK CONTROLS SKOKIE ILLINOIS JUMPED TWO AND FIVE EIGHTHS TO THIRTEEN AND SEVEN EIGHTHS FOLLOWING NEWS THAT BIG BOARD TRADED CRANE PLANS TO ACQUIRE IT FOR THIRTEEN DOLLARS A SHARE CRANE OWNS THIRTEEN PERCENT OF MARK A MAKER OF VALVES AND OTHER INDUSTRIAL AND COMMERCIAL PRODUCTS AN INITIAL BUY RATING FROM OPPENHEIMER PUSHED SAFECARD SERVICES CHEYENNE WYOMING UP ONE AND SEVEN EIGHTHS TO TWENTY AND ONE EIGHTH ON THE BIG BOARD NED DAVIS A SENIOR VICE PRESIDENT AT THE BROKERAGE FIRM SAID HE BELIEVES PAUL G. KAHN'S APPOINTMENT DECEMBER SEVENTH AS SAFECARD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL STRENGTHEN THE COMPANY'S MANAGEMENT NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED ONE HUNDRED TWENTY SEVEN WHILE TWENTY TWO HIT NEW LOWS SOCIETE NATIONALE ELF AQUITAINE THE FRENCH OIL COMPANY PREPARING FOR PRIVATIZATION REPORTED THAT ESTIMATED NET INCOME PLUNGED IN NINETEEN NINETY THREE TO ONE POINT ONE BILLION FRENCH FRANCS ONE HUNDRED EIGHTY FIVE POINT TWO MILLION DOLLARS FROM SIX POINT TWO BILLION FRANCS A YEAR EARLIER SALES EDGED UP TO TWO HUNDRED TEN BILLION FRANCS FROM TWO HUNDRED POINT SIX BILLION FRANCS ANALYSTS WEREN'T SURPRISED ELF CHAIRMAN PHILIPPE JAFFRE HAD PREPARED THEM LAST NOVEMBER WHEN THE COMPANY HAD DISCLOSED THAT NINETEEN NINETY THREE NET INCOME WOULDN'T BE MUCH OVER ONE BILLION FRANCS AND SOME SAID THE RESULTS WERE A SHADE BETTER THAN THEY HAD EXPECTED THE ELF CHAIRMAN EARLIER HAD INDICATED THAT NONRECURRING CHARGES FOR NINETEEN NINETY THREE WOULD AMOUNT TO ABOUT TWO POINT TWO BILLION FRANCS YESTERDAY ELF SAID THESE CHARGES TOTALED TWO BILLION FRANCS MR. JAFFRE HAS SCHEDULED A NEWS CONFERENCE FOR TOMORROW AND ANALYSTS SAID INVESTOR MEETINGS HAVE BEEN CALLED FOR NEXT WEEK SUGGESTING THAT DETAILS OF THE GOVERNMENT'S PLANNED SALE OF MUCH OF ITS FIFTY ONE PERCENT INTEREST IN ELF MAY BE ANNOUNCED THE RECENT PURCHASE OF ALMOST FOUR HUNDRED FIFTY MILLION DOLLARS OF R. H. MACY AND COMPANY'S DEBT BY RIVAL FEDERATED DEPARTMENT STORES HAS SET OFF SPECULATION ABOUT A MERGER WHEN MACY'S EMERGES FROM BANKRUPTCY MACY'S CHAIRMAN MYRON ULLMAN HAS ALREADY SAID THAT HE IS NOT INTERESTED IN A MERGER WITH FEDERATED OR PRESUMABLY WITH ANYONE ELSE IN THE MEANTIME AFTER TWO YEARS OF BANKRUPTCY MACY'S HAS YET TO PROPOSE ANY PLAN FOR REORGANIZATION THIS SITUATION BRINGS TO THE FOREFRONT THE BIGGEST FLAW IN OUR BANKRUPTCY SYSTEM MANY COURTS ARE ALL TOO WILLING TO GIVE THE BANKRUPT COMPANY THE ABILITY TO MONOPOLIZE THE RIGHT TO PROPOSE A PLAN OF REORGANIZATION SO LONG AS THE COMPANY HAS THIS MONOPOLY NO ONE EXCEPT THE DEBTOR NO CREDITOR SHAREHOLDER OR ANYONE ELSE CAN PROPOSE A PLAN AND GET THE COMPANY OUT OF CHAPTER ELEVEN ALTHOUGH THE BANKRUPTCY CODE GIVES THE COMPANY THIS REORGANIZATION MONOPOLY FOR ONLY ONE HUNDRED TWENTY DAYS THE BANKRUPTCY COURT HAS THE ABILITY TO EXTEND THIS EXCLUSIVE PERIOD OR QUOTE EXCLUSIVITY QUOTE INDEFINITELY SUCH EXTENSIONS HAVE BEEN ROUTINELY GRANTED TO MACY'S PERPETUAL EXTENSIONS OF EXCLUSIVITY MAKE SENSE PRIMARILY IN THOSE HIGHLY UNUSUAL SITUATIONS WHERE THE DEBTOR IS ENMESHED IN LITIGATION THAT REQUIRES RESOLUTION BEFORE THE DEBTOR CAN BEGIN TO REORGANIZE ITS AFFAIRS IN RECENT YEARS TWO COMPANIES INVOLVED IN THIS TYPE OF CASE WERE MANVILLE CORPORATION WHICH FACED BILLIONS OF DOLLARS IN JUDGMENTS FROM PARTIES HARMED BY ASBESTOS AND L. T. V. WHICH FACED A MULTIBILLION DOLLAR PENSION BENEFIT GUARANTY CORPORATION CLAIM IN BOTH MANVILLE AND L. T. V. MOST OBSERVERS RECOGNIZED THAT NO PLAN OF REORGANIZATION COULD BE CONFIRMED WITHOUT THE SUPPORT OF THE LITIGANTS SO PERPETUAL EXTENSIONS OF EXCLUSIVITY MADE SENSE BY FAR THE MORE COMMON OCCURRENCE IS A SITUATION LIKE MACY'S MACY'S IS TYPICAL OF MOST RECENT BANKRUPTCIES IN THAT ALTHOUGH IT MAY HAVE BEEN UNDERPERFORMING ITS COMPETITORS THE PRIMARY CAUSE OF ITS FILING FOR BANKRUPTCY WAS THAT IT SIMPLY HAD TOO MUCH DEBT RELATIVE TO ITS ABILITY TO SERVICE ITS DEBT THE ARGUMENT MADE BY THIS KIND OF DEBTOR FOR EXTENSIONS OF EXCLUSIVITY IS FAMILIAR DUE TO THE COMPLEXITY OF ITS CASE THE NEED TO COMPLETE AN OPERATIONAL TURNAROUND BEFORE EMERGING FROM BANKRUPTCY AND THE CHAOS THAT WOULD RESULT FROM LETTING ANYONE FILE A PLAN IT IS SUPPOSEDLY IN THE BEST INTERESTS OF THE ESTATE TO LET THE DEBTOR MONOPOLIZE THE REORGANIZATION PROCESS MACY'S HAS THUS PURSUED THE TYPICAL DEBTOR STRATEGY OF PRESERVING EXCLUSIVITY AS LONG AS POSSIBLE BUT IT HAS ALSO SHOWN NO URGENT DESIRE TO EXIT BANKRUPTCY AND THAT IS UNUSUAL IN FAILING TO COME FORTH WITH A PLAN MACY'S MUST HAVE BELIEVED THAT IT COULD NOT OPERATE OUT OF BANKRUPTCY IN NINETEEN NINETY THREE OR NINETEEN NINETY FOUR EVEN IF ALL ITS PRE BANKRUPTCY DEBTS WERE CONVERTED TO EQUITY IT IS ILLUSTRATIVE TO COMPARE THE MACY BANKRUPTCY TO THE RECENT BANKRUPTCY OF ZALE CORPORATION THE NATION'S LARGEST JEWELRY RETAILER THE ZALE BANKRUPTCY INVOLVED AS COMPLEX A SET OF LEGAL AND VALUATION ISSUES AS HAVE BEEN FACED IN ANY OTHER MAJOR BANKRUPTCY IN RECENT YEARS IN ADDITION ZALE HAD NO CHIEF EXECUTIVE AND FACED VIRTUALLY A COMPLETE OPERATIONAL MAKEOVER NOTWITHSTANDING THESE FACTS THE ZALE BANKRUPTCY COURT SET UP A RIGOROUS TIMETABLE WITH THE AIM OF SEEING THAT THE BANKRUPTCY LASTED LESS THAN EIGHTEEN MONTHS IN ADDITION THE ZALE BANKRUPTCY COURT IGNORED THE DEBTOR'S DESIRE TO KEEP EXCLUSIVITY IN FACT THE COURT MADE REFERENCE TO THE UNEVEN PLAYING FIELD THAT WOULD RESULT IF ONLY THE COMPANY ITSELF COULD CONTINUE TO FILE A REORGANIZATION PLAN ZALE'S BANKRUPTCY COUNSEL WEIL GOTSHAL AND MANGES WHICH IS ALSO MACY'S COUNSEL MADE THE PREDICTABLE ARGUMENT THAT CHAOS WOULD ENSUE IF ANY INTERESTED PARTY COULD FILE A PLAN FOR ZALE WELL CHAOS OF A SORT DID IN FACT ENSUE BUT IT LED TO ZALE CONFIRMING A PLAN OF REORGANIZATION WITHIN EIGHTEEN MONTHS OF ENTERING BANKRUPTCY ONE REASON THE MACY BANKRUPTCY HAS NOT BEEN HANDLED THIS WAY IS THAT IT IS BEING HEARD IN THE SOUTHERN DISTRICT OF NEW YORK A LOCATION THAT HAS SOMETIMES BEEN REFERRED TO AS DEBTOR'S PARADISE THE COURTS THERE ALWAYS SEEM TO PRESUME THAT THE DEBTOR IS INNOCENT UNTIL PROVEN GUILTY AN ADMIRABLE STANDARD IN CRIMINAL LAW BUT NOT IN BANKRUPTCY MATTERS THE SOUTHERN DISTRICT'S COURTS SEEM TO AGREE WITH VIRTUALLY EVERY ARGUMENT A DEBTOR MAKES SO LONG AS IT SOUNDS REASONABLE SOME OBSERVERS BELIEVE THAT IF MACY'S HAD PROMPTLY COME UP WITH A REORGANIZATION PLAN THAT AMONG OTHER THINGS CONVERTED ALL ITS PRE BANKRUPTCY DEBT TO EQUITY IT MIGHT HAVE OBTAINED POST BANKRUPTCY FINANCING THAT WOULD HAVE ENABLED IT TO EMERGE FROM BANKRUPTCY IN JANUARY NINETEEN NINETY THREE EVEN IF THAT DATE WAS OVERLY OPTIMISTIC JANUARY NINETEEN NINETY FOUR WAS CERTAINLY POSSIBLE BUT FOR REASONS THAT ARE DIFFICULT TO COMPREHEND MACY'S HAS DELAYED THERE IS NO NEED FOR AN OPERATIONAL MAKEOVER TO OCCUR ONLY WHILE A COMPANY IS IN CHAPTER ELEVEN AND IF AN EQUITY INFUSION WAS NEEDED TO HELP MACY'S MAKE AN EARLY EXIT FROM CHAPTER ELEVEN IT APPEARS THAT FIDELITY INVESTMENTS AND PERHAPS OTHERS WOULD HAVE BEEN WILLING TO BUY UP DEBT IN EXCHANGE FOR EQUITY IN NINETEEN NINETY THREE THE MILWAUKEE BASED P. A. BERGNER DEPARTMENT STORE CHAIN EMERGED FROM BANKRUPTCY THANKS IN PART TO AN EQUITY INFUSION FROM A GROUP OF DEBTHOLDERS FOLLOWING A REORGANIZATION PLAN IT WOULD NOT HAVE BEEN UNREASONABLE TO EXPECT A SIMILAR SOLUTION IN THE CASE OF MACY'S INSTEAD FOR THE PAST TWO YEARS MACY'S HAS FAILED TO COME UP WITH ANY PLAN OF REORGANIZATION AND IT HAS PETITIONED THE COURT TO PREVENT ANY OTHER INTERESTED PARTY FROM FILING ONE OF ITS OWN TO DATE THE COURT HAS ACQUIESCED NOW MACY'S IS REAPING THE BITTER HARVEST IT HAS SOWN WHEN MAJOR CREDITORS SUCH AS PRUDENTIAL AND FIDELITY SEE MACY'S MAKING NO PROGRESS TOWARD EXITING BANKRUPTCY AND WHEN THE COURT DENIES THESE CREDITORS THE RIGHT TO FILE THEIR OWN PLANS OF REORGANIZATION IT SHOULD COME AS NO SURPRISE THAT THEY BEGIN TO LOOK TO MACY'S COMPETITORS TO HELP SPEED UP THE PROCESS CONGRESS HAS NOT TOTALLY IGNORED WHAT IS HAPPENING IN DEBTOR'S PARADISE THE PROPOSED BANKRUPTCY REFORM BILL NOW IN CONGRESS WOULD DIRECT THE COURTS NOT TO EXTEND EXCLUSIVITY BEYOND A YEAR UNLESS THE NEED FOR AN EXTENSION IS ATTRIBUTABLE TO CIRCUMSTANCES FOR WHICH THE DEBTOR SHOULD NOT JUSTLY BE HELD ACCOUNTABLE THEORETICALLY THAT PROVISION WOULD HELP BUT MANY OBSERVERS FEAR THAT GIVEN THE PRO DEBTOR BIAS OF MANY BANKRUPTCY COURTS FINDING THE CIRCUMSTANCES TO JUSTIFY AN EXTENSION OF EXCLUSIVITY WILL BECOME ROUTINE DURING AN EXCLUSIVITY HEARING IN THE ZALE BANKRUPTCY ONE ATTORNEY MADE THE FOLLOWING STATEMENT WITH APOLOGIES TO SPIKE LEE MO PLANS MO BETTER IN THE ZALE BANKRUPTCY AT LEAST THE COURT AGREED WITH GOOD RESULTS IN THE CASE OF MACY'S HOWEVER AN END TO EXCLUSIVITY IS NOWHERE IN SIGHT MR. DICKSTEIN WAS A PARTICIPANT IN THE ZALE BANKRUPTCY AND IS CHAIRMAN OF CARSON PIRIE SCOTT THE SUCCESSOR CORPORATION TO P. A. BERGNER DAMAGE ASSESSMENTS SURGED FROM THE CENTURY'S WORST EARTHQUAKE HERE AS EMERGENCY TEAMS STUDIED THE WEAKENED STATE OF HIGHWAYS BUILDINGS AND OTHER STRUCTURES THAT SURVIVED MONDAY MORNING'S INITIAL JOLT THE HUMAN TOLL ALSO CREPT UP TO THIRTY FOUR DEAD AFTER RESCUE WORKERS FINISHED COMBING ONE PARTICULARLY DEVASTATED APARTMENT BUILDING NEAR THE SUBURBAN NORTHRIDGE EPICENTER MORE THAN TWO THOUSAND SIX HUNDRED WERE INJURED THE QUAKE WHICH MEASURED SIX POINT SIX ON THE RICHTER SCALE WREAKED HAVOC AT HUNDREDS OF BUSINESSES AND THOUSANDS OF APARTMENTS AND HOMES ACROSS A WIDE AREA OF THE NATION'S SECOND MOST POPULOUS CITY THOUGH GOVERNMENT AGENCIES AND INSURANCE AUTHORITIES SAID IT WAS STILL TOO EARLY FOR MEANINGFUL LOSS ESTIMATES ESPECIALLY WITH POTENTIALLY DAMAGING AFTERSHOCKS CONTINUING IN THE AREA SOME EARLY ESTIMATES BY INSURANCE EXPERTS SHARPLY ESCALATED FROM THE ABOUT ONE BILLION DOLLARS SUGGESTED ON THE DAY OF THE DISASTER INSURANCE COMPANIES WILL PAY BETWEEN ONE POINT FIVE BILLION DOLLARS AND TWO BILLION DOLLARS IN CLAIMS ON THE EARTHQUAKE KIDDER PEABODY AND COMPANY STOCK ANALYST STEVEN GAVIOS SAID AND THE TOTAL ECONOMIC LOSS MIGHT BE PERHAPS TEN TIMES THE AMOUNT OF CLAIMS THE FIGURES HE SAID REFLECT STUDIES BY PRIVATE CONSULTING FIRMS THAT USE COMPUTER MODELS TO MAKE THEIR ESTIMATES CLAIMS AFTER THE NINETEEN EIGHTY NINE SAN FRANCISCO QUAKE WERE ABOUT NINE HUNDRED SIXTY MILLION DOLLARS AND TOTAL DAMAGE THERE WAS ABOUT SEVEN BILLION DOLLARS QUOTE THERE ARE A SIGNIFICANT NUMBER OF STRUCTURES THAT HAVE SUFFERED SERIOUS DAMAGE QUOTE SAID DICK ANDREWS DIRECTOR OF GOVERNOR PETE WILSON'S OFFICE OF EMERGENCY SERVICES BUT WE DON'T KNOW YET WHETHER THAT MEANS THEY CAN BE REPAIRED WITH SOME TIME OR WHETHER THEY ARE A TOTAL LOSS WHILE THE WORST DEVASTATION WAS TO SHOPPING CENTERS COMMERCIAL BUILDINGS AND APARTMENTS CONCENTRATED WITHIN A FEW MILES OF NORTHRIDGE A SAN FERNANDO VALLEY COMMUNITY ABOUT THIRTY MILES NORTHWEST OF DOWNTOWN SEVERE DAMAGE EXTENDED INTO SANTA MONICA HOLLYWOOD AND THE EASTERN AND WESTERN EDGES OF THE VALLEY IN THE VALLEY AND ITS OUTER REACHES REGIONAL POWER SWITCHING STATIONS WATER PUMPING STATIONS AND OTHER IMPORTANT STRUCTURES WERE KNOCKED OUT THOUSANDS OF VALLEY APARTMENT DWELLERS FEARED RE ENTERING THEIR BUILDINGS WORRIED THAT A SEEMINGLY RELENTLESS SUCCESSION OF AFTERSHOCKS WOULD SEND WEAKENED CONCRETE CRASHING DOWN ON THEM ABOUT THREE THOUSAND PEOPLE SPENT MONDAY NIGHT IN TWENTY TWO RED CROSS SHELTERS WITH THOUSANDS MORE CAMPED OUTSIDE AND IN CITY PARKS LOCAL AUTHORITIES SAID THEY DIDN'T KNOW HOW LONG IT WOULD TAKE BUILDING INSPECTORS TO DETERMINE THE HABITABILITY OF DAMAGED RESIDENTIAL BUILDINGS MANY OF THESE PEOPLE ARE STAYING IN OUR SHELTERS BECAUSE THEIR BUILDINGS ARE CRACKED AND THEY ARE WAITING FOR AN OFFICIAL TO DETERMINE WHETHER IT WILL BE SAFE TO GO BACK IN SAID CAROL MILLER A SPOKESWOMAN FOR THE AMERICAN RED CROSS SHE COULDN'T PREDICT HOW MANY WOULD BE BACK LAST NIGHT WATER AND POWER WERE BEING RESTORED TO MOST PARTS OF THE CITY AS THE DAY PASSED MOST LARGE BUSINESSES AND SCHOOLS HEEDED MAYOR RICHARD RIORDAN'S REQUEST THAT THEY STAY CLOSED YESTERDAY WHICH TOOK PRESSURE OFF CRIPPLED FREEWAYS AND CITY SERVICES IT WASN'T CLEAR HOW SOON A SENSE OF NORMALCY WOULD RETURN CITY OFFICIALS EXTENDED THE DUSK TO DAWN CURFEW AT LEAST THROUGH LAST NIGHT SCATTERED INSTANCES OF LOOTING RESULTED IN SEVENTY THREE ARRESTS DURING A MONDAY NIGHT CHARACTERIZED BY A POLICE SPOKESMAN AS RELATIVELY UNEVENTFUL MORE THAN TWO THOUSAND NATIONAL GUARD SOLDIERS PATROLLED THE STREETS YESTERDAY AT LOS ANGELES COUNTY'S EMERGENCY OPERATIONS CENTER SQUADS OF ENGINEERS AND OTHER STAFFERS WERE DEPLOYED TO INSPECT HUNDREDS OF STRUCTURES RED TAGGING THOSE THAT ARE UNSAFE TO ENTER SO FAR OFFICIALS HAVE IDENTIFIED FORTY COUNTY FACILITIES SUSTAINING SOME STRUCTURAL DAMAGE ALTHOUGH THE ASSESSMENT IS FAR FROM COMPLETE SAID BOB GARROTT ASSISTANT MANAGER OF THE OFFICE OF EMERGENCY MANAGEMENT THE GIANT LOS ANGELES UNIFIED SCHOOL DISTRICT SAID THAT AT LEAST ONE HUNDRED OF ITS SIX HUNDRED FIFTY SCHOOLS SUSTAINED SIGNIFICANT STRUCTURAL DAMAGE SOME FACILITIES MAY BE A TOTAL LOSS AND REPAIRS ARE EXPECTED TO COST HUNDREDS OF MILLIONS OF DOLLARS A SPOKESMAN SAID DAMAGE TO A STATE COURTHOUSE IN VAN NUYS FORCED SUSPENSION OF DELIBERATIONS IN LYLE MENENDEZ'S HIGHLY PUBLICIZED MURDER TRIAL THERE ATLANTIC RICHFIELD COMPANY THE BIG LOS ANGELES OIL COMPANY SAID TWENTY OF ITS TWENTY SEVEN SERVICE STATIONS LOCATED WITHIN A TEN MILE RADIUS OF THE EPICENTER SUSTAINED SOME DAMAGE THE OIL COMPANY ALSO SAID TWO PIPELINES WERE AFFECTED WHILE OTHERS WERE TEMPORARILY SHUT DOWN AS A PRECAUTION AT ONE LOCATION ABOUT THREE THOUSAND FIVE HUNDRED BARRELS OF CRUDE OIL LEAKED FROM A PIPELINE A CLEANUP EFFORT IS UNDER WAY SAID AL GREENSTEIN AN ARCO SPOKESMAN BUT NO COST ESTIMATES WERE IMMEDIATELY AVAILABLE MANY OTHER BUSINESSES AND GOVERNMENT AGENCIES REPORTED PROBLEMS KENFIL INCORPORATED A VAN NUYS SOFTWARE CONCERN SAID IT SUSTAINED MAJOR DAMAGE TO ITS LOCAL WAREHOUSES NEWHALL LAND AND FARMING COMPANY SAID A FOUR STORY OFFICE BUILDING IN NEARBY VALENCIA WAS HEAVILY DAMAGED ROYCE HALL A CONCERT HALL AT THE UNIVERSITY OF CALIFORNIA LOS ANGELES WAS ALSO HIT NEARLY TWO DOZEN POST OFFICES MOSTLY IN THE SAN FERNANDO VALLEY WERE CLOSED FOR REPAIRS OPERATIONS OF THE LOS ANGELES DEPARTMENT OF WATER AND POWER WHICH PROVIDES MUCH OF THE REGION'S WATER AND ELECTRICAL SERVICE WERE HIT ESPECIALLY HARD AS MANY AS EIGHTY TWO THOUSAND ELECTRIC AND FORTY THOUSAND WATER CUSTOMERS OF DWP REMAINED WITHOUT SERVICE YESTERDAY AND TROUBLE RANGED FROM SCATTERED WATER MAIN BREAKS TO RUPTURES IN OTHER MAJOR CITY WATER LINES AND DAMAGE TO TWO AQUEDUCTS IN THE SAN GABRIEL MOUNTAINS QUOTE WE JUST HAVEN'T HAD TIME TO ASSESS THE DOLLAR AMOUNT OF THE DAMAGE BECAUSE WE'RE FOCUSING ON RESTORING SERVICE QUOTE SAID SPOKESWOMAN LUCIA ALVELAIS ADDING THAT REPAIR WORK COSTS WOULD CLEARLY RUN HIGH INTO THE MILLIONS UTILITIES SAID THAT EVEN AFTER SERVICE IS RESTORED MAJOR REPAIRS WILL BE NEEDED THROUGH THEIR SYSTEMS S. C. E. CORPORATION'S SOUTHERN CALIFORNIA EDISON ELECTRIC UTILITY FOR INSTANCE SAID A MAJOR SWITCHING STATION AT THE VALLEY'S NORTH END SUSTAINED CONSIDERABLE DAMAGE WE EXPECT OUR EXPENSES TO BE LESS THAN ONE HUNDRED MILLION DOLLARS BUT IT REALLY WILL BE SOME TIME BEFORE WE KNOW SAID KEVIN KELLEY AN EDISON SPOKESMAN BETWEEN THIRTY PERCENT AND THIRTY FIVE PERCENT OF CALIFORNIA HOMEOWNERS CARRY EARTHQUAKE INSURANCE AN INSURANCE INDUSTRY SPOKESWOMAN SAID SHE ESTIMATED THAT IT WOULD TAKE AT LEAST A WEEK TO GATHER ESTIMATES ON THE TOTAL INSURED RESIDENTIAL AND COMMERCIAL LOSS ADDING THAT MOST CARRIERS WILL SUSPEND WRITING NEW EARTHQUAKE POLICIES UNTIL DAMAGE FROM MONDAY'S QUAKE AND AFTERSHOCKS IS TALLIED GREG STEINMETZ IN NEW YORK CONTRIBUTED TO THIS ARTICLE AS GOLD STRUGGLES TOWARD FOUR HUNDRED DOLLARS AN OUNCE CARRYING GOLD SHARE PRICES HIGHER INSIDERS AT TWO BIG U. S. GOLD MINING COMPANIES ARE BOWING TO TEMPTATION AND TAKING PROFITS AT DENVER BASED ECHO BAY MINES INSIDERS SOLD MORE STOCK IN THE FOURTH QUARTER THAN IN ANY ENTIRE PRIOR YEAR RECENT SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW THAT ELEVEN INSIDERS INCLUDING THE CHAIRMAN JETTISONED AROUND FOUR HUNDRED THOUSAND SHARES AT AN AVERAGE PRICE OF TWELVE DOLLARS AND FIFTY CENTS EACH IN THE OCTOBER DECEMBER PERIOD AND AT HOMESTAKE MINING OF SAN FRANCISCO THE LEVEL OF INSIDER SELLING IS ALSO AT RECORD LEVELS WITH MORE THAN FIVE HUNDRED THOUSAND SHARES BEING DUMPED IN THE NINETEEN DOLLAR TO TWENTY THREE DOLLAR RANGE BETWEEN NOVEMBER FIRST AND DECEMBER TWENTY SEVENTH S. E. C. DATA INDICATE IN NEARLY ALL THE MOST RECENT INSTANCES OF INSIDER SELLING THE SHARES SOLD WERE FIRST ACQUIRED THROUGH THE EXERCISE OF OPTIONS OPTION RELATED SELLING IS GENERALLY VIEWED AS A LESS SIGNIFICANT INDICATOR OF INSIDER SENTIMENT THAN THE SALE OF LONG TERM HOLDINGS THAT'S BECAUSE OPTIONS ARE OFTEN A LARGE PART OF EXECUTIVE COMPENSATION PACKAGES BUT ANALYSTS WHO FOLLOW INSIDER TRADING ARGUE NEVERTHELESS THAT RECORD OPTION RELATED SALES BY INSIDERS SHOULDN'T BE IGNORED THE TOP EXECUTIVE AT HOMESTAKE BEGS TO DIFFER QUOTE THE SALES AT HOMESTAKE WERE OPTION RELATED AND DON'T EXPRESS ANY LACK OF FAITH IN THE COMPANY'S PROSPECTS QUOTE SAYS HARRY CONGER CHAIRMAN AND CHIEF EXECUTIVE OFFICER AFTER MORE THAN A DECADE OF WEAK BULLION AND GOLD EQUITY PRICES THESE INDUSTRY INSIDERS APPEAR TO BE HEDGING THEIR BETS THAT THE TEN MONTH OLD GOLD RALLY FUELED IN PART BY CONCERNS OVER INFLATION WILL BE LONG LIVED GOLD FOR FEBRUARY DELIVERY CLOSED YESTERDAY AT THREE HUNDRED NINETY THREE DOLLARS AND SIXTY CENTS UP ONE DOLLAR AND FORTY CENTS ON NEW YORK'S COMMODITY EXCHANGE WHILE MANY GOLD ANALYSTS THINK BULLION CAN CLIMB INTO THE LOW FOUR HUNDRED DOLLARS THIS YEAR ON SUPPLY AND DEMAND FUNDAMENTALS ALONE THERE'S CONSIDERABLE DOUBT WHETHER GOLD CAN BREACH STIFF RESISTANCE AT FOUR HUNDRED TWENTY DOLLARS AND ABOVE PARTICULARLY WHEN OIL PRICES A MAJOR INFLUENCE ON INFLATION HAVE SAGGED TO LOWS BELOW FOURTEEN DOLLARS A BARREL YET RATHER THAN CONCEDE ANY HEIGHTENED LEVEL OF UNCERTAINTY ABOUT GOLD'S FUTURE COURSE INSIDERS AT GOLD MINING COMPANIES ARGUE THAT GOLD EQUITY PROFITS IN THE HAND ARE BETTER THAN POTENTIAL GAINS WE EXPECT OUR EXECUTIVES TO TAKE PROFITS PERIODICALLY SAYS ECHO BAY'S CHAIRMAN AND C. E. O. ROBERT CALMAN WHO SOLD SIXTY FIVE THOUSAND SHARES IN DECEMBER AFTER THE EXERCISE OF OPTIONS PRICED AT FIVE DOLLARS AND SEVENTY FIVE CENTS A SHARE WE TELL OUR PEOPLE WHEN YOU GET A CHANCE TO MAKE SOME MONEY ON YOUR OPTION SHARES DO IT AND PUT THE PROFIT AWAY FOR OLD AGE LAST YEAR HE ADDS WAS A GOOD YEAR FOR GOLD PRICES AND A GOOD YEAR FOR OUR STOCK OUR SHARES WERE UP ONE HUNDRED SIXTY PERCENT IN NINETEEN NINETY THREE ECHO BAY'S SHARES BEGAN NINETEEN NINETY THREE AT FOUR POINT NINE THREE EIGHT DOLLARS AND CLOSED AT TWELVE POINT EIGHT SEVEN FIVE DOLLARS YESTERDAY THE STOCK ROSE TWELVE POINT FIVE CENTS TO CLOSE AT FIFTEEN DOLLARS A FIFTY TWO WEEK HIGH IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING THE STOCK RANKED AS THE MOST ACTIVE ISSUE ON THE AMEX IN NINETEEN NINETY THREE NOT SURPRISINGLY MR. CALMAN SAYS ECHO BAY SHARE PRICES TRACK GOLD PRICES CLOSELY OUR SHARES ARE DOING WELL BECAUSE GOLD IS DOING WELL HE SAYS QUOTE WE DID A STUDY THAT SHOWED THERE'S BEEN AN EIGHTY PERCENT CORRELATION OVER THE PAST DECADE BETWEEN ECHO BAY'S SHARE PRICE AND THE PRICE OF GOLD QUOTE IT HELPS OF COURSE TO HAVE GREATLY REDUCED THE COMPANY'S DEBT SERVICING COSTS AND TO HAVE SIGNIFICANTLY CUT THE CASH BASED COST OF PRODUCTION TO AROUND TWO HUNDRED FIFTEEN DOLLARS AN OUNCE FROM AN AVERAGE OF TWO HUNDRED FORTY DOLLARS IN NINETEEN NINETY TWO HE ADDS BUT ANALYSTS NOTE THAT ECHO BAY COULD MISS OUT ON ANY MAJOR GOLD PRICE RALLY THIS YEAR AND IN NINETEEN NINETY FIVE BECAUSE IT WON'T HAVE FULL ACCESS TO IMPORTANT RESERVES IN ALASKA FOR SEVERAL YEARS A LENGTHY CONSTRUCTION SCHEDULE AND A COMPLEX PERMITTING PROCESS STAND IN THE WAY OF ALASKAN PRODUCTION BEFORE NINETEEN NINETY SEVEN AT THE EARLIEST THE PROVEN AND PROBABLE RESERVES AT ECHO BAY'S TWO SITES IN ALASKA ARE PUT BY THE COMPANY AT FOUR POINT FOUR MILLION OUNCES BECAUSE ECHO BAY'S PRODUCTION PROFILE IS STABLE FOR THE NEXT SEVERAL YEARS THEY WON'T BENEFIT AS MUCH FROM A RISING GOLD PRICE AS WOULD A COMPANY WITH A MORE AGGRESSIVE PRODUCTION CAMPAIGN SAYS LEANNE BAKER A PRECIOUS METALS INDUSTRY ANALYST WITH SALOMON BROTHERS SHE IS MAINTAINING A HOLD RATING ON THE STOCK WITH A TARGET PRICE FOR NINETEEN NINETY FOUR OF SIXTEEN DOLLARS AND FIFTY CENTS A SHARE ASSUMING A FOUR HUNDRED DOLLAR GOLD PRICE AVERAGE ON THE YEAR AND A TARGET OF TWENTY DOLLARS AND FIFTY CENTS FOR NINETEEN NINETY FIVE ASSUMING A FOUR HUNDRED TWENTY FIVE DOLLAR AVERAGE PRICE OF BULLION THAT YEAR SHE EXPECTS ECHO BAY TO EARN AN OPERATING PROFIT OF ELEVEN CENTS A SHARE IN NINETEEN NINETY FOUR AFTER WHAT SHE EXPECTS TO BE AN OPERATING LOSS OF ABOUT THREE CENTS A SHARE FOR ALL OF NINETEEN NINETY THREE OTHER ANALYSTS ARE LESS ENTHUSIASTIC MARC COHEN AN INDUSTRY ANALYST AT KIDDER PEABODY RATES THE STOCK AN UNDERPERFORMER OR MORE BLUNTLY A SELL I'M NOT EVEN SURE IF THE COMPANY'S CURRENT VALUATION WOULD BE WARRANTED IF THEY HAD A SPECTACULAR EXPLORATION PROGRAM BUT THEY DON'T HE SAYS QUOTE ON TOP OF THAT THEY'RE A HIGH COST PRODUCER YET PEOPLE DO WANT TO OWN THIS STOCK IT MYSTIFIES ME MR. CALMAN COUNTERS THAT THE DELAY IN TAPPING THE ALASKAN RESERVES IS MITIGATED BY THE COMPANY'S ABILITY TO SELL FORWARD UP TO A MILLION OUNCES OF UNMINED GOLD FROM THOSE ALASKAN RESERVES BEFORE PRODUCTION BEGINS LAST YEAR HE SAID THE COMPANY SOLD THREE HUNDRED THOUSAND OUNCES FORWARD FROM THOSE MINES LAST YEAR ECHO BAY PRODUCED AN ESTIMATED EIGHT HUNDRED SEVENTY FOUR THOUSAND OUNCES OF GOLD UP FROM SEVEN HUNDRED SIXTY FOUR THOUSAND TWO HUNDRED OUNCES IN NINETEEN NINETY TWO ACCORDING TO THE COMPANY'S PRELIMINARY FIGURES HOMESTAKE SHARES DOUBLED TO TWENTY TWO DOLLARS LAST YEAR AND THE STOCK RATES A HOLD FROM MS. BAKER SHE SAYS MOST OF THE GOOD NEWS IS ALREADY REFLECTED IN THE COMPANY'S SHARE PRICE THE STOCK CLOSED YESTERDAY AT TWENTY FOUR POINT ONE TWO FIVE DOLLARS OFF SEVENTY FIVE CENTS AND SHY OF ITS FIFTY TWO WEEK HIGH OF TWENTY FOUR POINT EIGHT SEVEN FIVE DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THEY'VE MADE TREMENDOUS STRIDES IN IMPROVING THE PROFITABILITY OF THEIR FLAGSHIP HOMESTAKE MINE IN SOUTH DAKOTA BUT THERE ARE SIMPLY SOME BETTER VALUES TO BE FOUND WITHIN THE GROUP OF LARGE CAPITALIZATION GOLD PRODUCERS SHE SAYS MR. COHEN THE KIDDER ANALYST RATES HOMESTAKE AN OUTPERFORMER OR A NOTCH BELOW A BUY THE STOCK HAS HIT HIS NEAR TERM PRICE TARGET OF TWENTY THREE DOLLAR TWENTY FOUR DOLLARS BUT THE COMPANY'S ANNOUNCEMENT LATE LAST YEAR THAT IT HAD DISCOVERED A PROMISING DEPOSIT NEAR EUREKA NEVADA WAS ENCOURAGING WE THINK IT'S A PROPERTY WELL WORTH WATCHING HE SAYS THE STOCK NOW PROVIDES AN EXPLORATION PLAY I READ WITH INTEREST YOUR ARTICLE ABOUT CRAFTMADE INTERNATIONAL HEARD IN TEXAS JANUARY FIFTH I WAS C. E. O. FOUNDER AND EIGHTY FIVE PERCENT OWNER OF D. M. I. PRODUCTS WHICH WAS BOUGHT BY CRAFTMADE IN NINETEEN NINETY ONE D. M. I. ENJOYED VERY RAPID GROWTH CAUSING IT TO BE NAMED TO THE QUOTE INCORPORATED MAGAZINE FIVE HUNDRED LIST OF AMERICA'S FASTEST GROWING COMPANIES IN NINETEEN EIGHTY EIGHT THE COMPANY MISSED IN NINETEEN EIGHTY NINE BY JUST A FEW PERCENTAGE POINTS UNFORTUNATELY OUR RAPID GROWTH AND THE CRASH OF TEXAS AMERICAN BANK IN NINETEEN EIGHTY NINE CREATED THE CASH FLOW CRISIS THAT EVERY C. E. O. DREADS ALTHOUGH WE WERE PERFORMING ON OUR LINE OF CREDIT THE FEDS WHO TOOK OVER TEXAS AMERICAN BANK FORCED OUR LOAN TO BE CALLED CRAFTMADE BECAME OUR SAVIOUR CONTRARY TO YOUR ARTICLE OUR ONLY SHORTCOMING WAS A LACK OF CASH TO CONTINUE OUR GROWTH WE NEEDED A LOT OF CASH TO IMPORT FOR OUR LARGEST CUSTOMER PIER ONE WE WERE PIER ONE'S LARGEST LAMP SUPPLIER SELLING MORE THAN THREE MILLION DOLLARS A YEAR BOMBAY WAS NOT A CUSTOMER OF D. M. I.'S AT THE TIME OF THE MERGER IN NINETEEN NINETY BUT THEY WANTED TO BE WE SIMPLY COULDN'T HANDLE THEM WITH OUR BANKING PROBLEMS UNFORTUNATELY CRAFTMADE LOST THE BULK OF PIER ONE'S BUSINESS EARLY ON BECAUSE OF QUALITY AND DELIVERY PROBLEMS THUS THE TWO HUNDRED THOUSAND DOLLAR LOSS THAT YOU REFERRED TO IN THE ARTICLE BOMBAY WAS WAITING IN THE WINGS AND CRAFTMADE DID A GREAT JOB IN HELPING THEM DEVELOP THEIR LAMP PROGRAM PIER ONE SEEMS TO BE ON THE WAY BACK NOW AS A LARGE LIGHTING CUSTOMER FOR CRAFTMADE TRADERS CASHING IN RECENT PROFITS SOLD THE DOLLAR YESTERDAY ON INDICATIONS THAT THE BUNDESBANK ISN'T YET PRIMED TO CUT INTEREST RATES WHILE THE FEDERAL RESERVE COULD STALL ON A RATE BOOST LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FOUR SIX FIVE MARKS DOWN FROM ONE POINT SEVEN FIVE FIVE THREE MARKS LATE MONDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED TEN POINT SEVEN FIVE YEN DOWN FROM ONE HUNDRED ELEVEN POINT OH SIX YEN STERLING WAS TRADING AT ONE POINT FOUR NINE SIX OH DOLLARS UP FROM ONE POINT FOUR NINE THREE TWO DOLLARS ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED TEN POINT EIGHT FIVE YEN AND AT ONE POINT SEVEN FOUR FIVE SEVEN MARKS THE GERMAN CENTRAL BANK ISSUED ITS JANUARY REPORT YESTERDAY STRONGLY QUESTIONING ANY POLICY OF DEPRECIATING THE MARK BY CUTTING KEY INTEREST RATES AND STATING THAT IT WASN'T AN OPTION FOR SOLVING GERMANY'S ECONOMIC WOES TRADERS SAID THE REPORT SUGGESTED THAT THE BANK'S POLICYMAKING COUNCIL IS UNLIKELY TO CUT ITS KEY INTEREST RATES WHEN IT MEETS TOMORROW THE DOLLAR'S STRONG RISE AGAINST THE MARK IN JANUARY WAS LARGELY PREDICATED ON SPECULATION THAT THE BUNDESBANK HAD TO CUT RATES TO FOSTER AN ECONOMIC TURNAROUND FOR GERMANY WHILE THE FED WOULD RAISE RATES SOON TO STAVE OFF U. S. INFLATION PRESSURES HIGH INTEREST RATES BECAUSE THEY ARE ALLURING TO INVESTORS GENERALLY HELP PROP UP THE STRENGTH OF A CURRENCY TRADERS NOTED STATEMENTS YESTERDAY BY TWO FEDERAL RESERVE GOVERNORS WHO SUGGESTED THAT THE U. S. ECONOMIC RECOVERY IS PROCEEDING AMID SUBDUED INFLATIONARY PRESSURES THAT INDICATED THE FED IS LESS LIKELY TO INCREASE INTEREST RATES IN THE SHORT TERM TRADERS SAID ROBERT FORRESTAL PRESIDENT OF THE FEDERAL RESERVE BANK OF ATLANTA ESTIMATED FOURTH QUARTER U. S. ECONOMIC GROWTH WAS QUOTE FIVE PERCENT MAYBE EVEN HIGHER QUOTE HE ADDED THAT HE WAS HEARTENED BY THE FACT THAT OVER THE PAST FEW YEARS WE'VE BEEN ABLE TO BRING INFLATION DOWN FROM THE LEVELS OF THE EARLY NINETEEN EIGHTIES SIMILARLY ALFRED BROADDUS PRESIDENT OF THE FEDERAL RESERVE BANK OF RICHMOND VIRGINIA SAID THAT THE CORE RATE OF CONSUMER PRICES WHICH EXCLUDES VOLATILE FOOD AND ENERGY PRICES ROSE ONLY THREE POINT ONE PERCENT IN NINETEEN NINETY THREE TRADERS SAID THE STATEMENTS BY THE TWO FED OFFICIALS DID LITTLE TO SUGGEST THAT INFLATION IS A NEAR TERM THREAT TOGETHER WITH MILD CONSUMER PRICE AND PRODUCER PRICE DATA RELEASED LAST WEEK THE COMMENTS HELPED OVERCOME MUCH OF THE RECENT SPECULATION ABOUT A NEAR TERM INTEREST RATE INCREASE TRADERS ADDED LONG DOLLAR POSITIONS ARE UNRAVELING A LITTLE BIT ON THE INTEREST RATE ISSUE SAID ANGELO EVANGELISTA VICE PRESIDENT CORPORATE FOREIGN EXCHANGE AT THE BANK OF BOSTON THE DIVERGENCE IN INTEREST RATES THAT EVERYONE SAW EARLIER IN JANUARY IS NOW GOING THE OTHER WAY AND THAT SPOOKED A FEW PEOPLE MR. EVANGELISTA SAID THERE IS A PERCEPTION THAT THE GERMANS WILL HOLD OFF CUTTING RATES AND THAT THE FED WON'T RAISE ITS RATES HE ADDED BUT IN THE LONGER RUN MR. EVANGELISTA SUGGESTED BOTH CENTRAL BANKS WILL HAVE TO ADJUST THEIR RATES THE U. S. ECONOMIC RECOVERY EVENTUALLY WILL FUEL INFLATION AND GERMAN INTEREST RATES ARE BEING KEPT ARTIFICIALLY HIGH BY THE END OF THE FIRST QUARTER THE FED WILL HAVE TO JACK UP INTEREST RATES AT LEAST A QUARTER POINT AND THE BUNDESBANK WILL HAVE TO CUT IN FEBRUARY HE SAID OWENS CORNING FIBERGLAS CORPORATION TOLEDO OHIO SOLD ITS TWENTY FIVE PERCENT INTEREST IN C. A. E. FIBERGLASS LIMITED TO ZCL MANUFACTURING CANADA INCORPORATED OF EDMONTON ALBERTA TERMS WEREN'T DISCLOSED CAMPBELL SOUP COMPANY CAMDEN N. J. WILL SPEND FIFTY SEVEN MILLION DOLLARS FOR IMPROVEMENTS AT ITS SACRAMENTO CALIFORNIA PLANT PARTECH HOLDINGS CORPORATION COLUMBUS OHIO AGREED TO BUY WMLO F. M. IN TALLAHASSEE FLORIDA FROM EDWARD WINTON TERMS WEREN'T DISCLOSED OHM CORPORATION FINDLAY OHIO FINALIZED A CONTRACT WITH THE U. S. ENVIRONMENTAL PROTECTION AGENCY FOR EMERGENCY CLEANUPS THE AGENCY PICKED UP THE FIRST OF FOUR OPTION YEARS THE VALUE OF THE CONTRACT COULD BE AS MUCH AS ONE HUNDRED MILLION DOLLARS OVER FIVE YEARS ROBERT P. BOZZONE SIXTY YEARS OLD ANNOUNCED PLANS TO RETIRE IN JUNE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SPECIALTY STEELMAKER A COMPANY SPOKESMAN SAID MR. BOZZONE HAS LONG SAID HE WANTED TO RETIRE FROM THE CHIEF EXECUTIVE'S POST WHEN HE REACHED SIXTY MR. BOZZONE IS EXPECTED TO BE NAMED VICE CHAIRMAN AND ASSUME A CONSULTING ROLE WITH THE COMPANY HE ALSO HOLDS ABOUT NINE PERCENT OF THE COMPANY'S SHARES OUTSTANDING MR. BOZZONE AND CHAIRMAN RICHARD P. SIMMONS WILL RECOMMEND THAT THE BOARD NAME ARTHUR H. ARONSON PRESIDENT AND CHIEF EXECUTIVE MR. ARONSON FIFTY EIGHT IS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER BESIDES THE DEVASTATION OF PROPERTY AND LIVES THE EARTHQUAKE WHICH STRUCK LOS ANGELES MONDAY COULD HAVE FINANCIAL REPERCUSSIONS SINCE CALIFORNIA IS THE NATION'S LARGEST ISSUER OF MUNICIPAL BONDS BOTH MOODY'S INVESTORS SERVICE INCORPORATED AND STANDARD AND POOR'S CORPORATION SAID IT WAS TOO SOON TO OFFER OFFICIAL ASSESSMENTS OF THE DAMAGE AND ITS EFFECT ON BONDHOLDERS BUT OFFICIALS AT BOTH RATING AGENCIES SUGGESTED THAT WHILE THEY WEREN'T EXPECTING ANY SWEEPING RATING CHANGES CERTAIN TYPES OF BONDS COULD BE IN FOR SHARP DOWNGRADES INVESTORS AND MARKET ANALYSTS SAID THE VALUE OF MUNICIPAL BONDS OUTSTANDING WON'T NECESSARILY DROP BECAUSE OF THE EARTHQUAKE THAT'S BECAUSE THE ABILITY OF LOCAL ISSUERS TO PAY THEIR BILLS WILL BE HELPED BY DISASTER RELIEF COMING FROM THE FEDERAL GOVERNMENT MEANWHILE THE BENCHMARK THIRTY YEAR TREASURY BOND ROSE MORE THAN ONE QUARTER POINT OR MORE THAN TWO DOLLARS AND FIFTY CENTS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO NINETY NINE AND TWENTY TWO THIRTY SECONDS ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO SIX POINT TWO SIX PERCENT FROM SIX POINT TWO NINE PERCENT ON FRIDAY U. S. BOND MARKETS WERE CLOSED MONDAY FOR THE MARTIN LUTHER KING JUNIOR HOLIDAY LAST YEAR ISSUERS IN CALIFORNIA SOLD THIRTY EIGHT POINT ONE TWO BILLION DOLLARS OF NEW MUNICIPAL BONDS WITH MATURITIES OF THIRTEEN MONTHS OR MORE ACCORDING TO SECURITIES DATA COMPANY REPESENTING THIRTEEN POINT TWO PERCENT OF ALL ISSUES SOLD IN THE U. S. LOS ANGELES COUNTY AND THE CITY OF LOS ANGELES ARE TWO OF THE STATE'S BIGGEST ISSUERS EARLY YESTERDAY GREG HARRINGTON DIRECTOR OF TRADING AND RESEARCH AT FRANKLIN GROUP OF FUNDS THE NATION'S LEADING INVESTOR IN CALIFORNIA MUNICIPAL BONDS DIRECTED HIS COLLEAGUES TO CALL ISSUERS IN THE LOS ANGELES AREA TO GET SOME IDEA OF THE EXTENT OF THE EARTHQUAKE DAMAGE FRANKLIN OWNS ABOUT SIXTEEN BILLION DOLLARS OF CALIFORNIA MUNICIPAL BONDS IN VARIOUS FUNDS IT MANAGES FOR INVESTORS QUOTE WE COULDN'T FIND ANYTHING DISTURBING ABOUT OUR PORTFOLIO QUOTE OF HOLDINGS HE SAID THOUGH DETAILS OF THE DAMAGE ARE STILL SKETCHY BECAUSE MANY PUBLIC OFFICIALS COULD NOT BE REACHED THERE IS EXTENSIVE DAMAGE HE SAID BUT MR. HARRINGTON SAID HE EXPECTED THE DAMAGE TO BE LESS THAN THAT OF THE EARTHQUAKE WHICH HIT SAN FRANCISCO IN NINETEEN EIGHTY NINE THE MAIN DAMAGE IS TO THE HIGHWAYS HE EXPLAINED MANY OF WHICH ARE FEDERAL HIGHWAYS WITH PART OF THE EXPENSES TO BE BORNE BY THE U. S. GOVERNMENT THERE HAS TO BE SOME DAMAGE TO LOCAL AND COUNTY ROADS HE SAID BUT THAT DIDN'T APPEAR TO BE AS EXTENSIVE MORE IMPORTANT FOR INVESTORS IT DOESN'T APPEAR THE EARTHQUAKE WILL JEOPARDIZE THE ABILITY OF MANY ISSUERS TO CONTINUE PAYING THE COUPONS ON BOND ISSUES BUT THE ABILITY TO PAY DEPENDS LARGELY ON THE TYPE OF ISSUER INVOLVED POINTED OUT JOSEPH ROSENBLUM DIRECTOR OF MUNICIPAL RESEARCH AT SANFORD C. BERNSTEIN AND COMPANY OF NEW YORK BONDS ISSUED TO BACK SPECIFIC PROJECTS SEEM MOST VULNERABLE TO RATING CHANGES AND EVEN DEFAULT HE SAID THE PROJECT MAY HAVE BEEN DESTROYED HE SAID ALSO AT RISK ARE LEASE FINANCING BONDS WHERE AN ISSUER PAYS OFF A DEBT WITH THE REVENUES OF A PROJECT FINANCED BY BONDS BONDS BACKED BY REVENUES OF A WATER SEWAGE TRANSPORTATION OR ELECTRICAL SYSTEM IN THE LOS ANGELES AREA MAY EXPERIENCE SOME SHORT TERM PRICE DROPS DUE TO A DISRUPTION IN REVENUES BUT WHEN REPAIRS ARE MADE THE PRICES SHOULD RECOVER HE SAID THE QUESTION IS HOW EXTENSIVE IS THE DAMAGE TO THE SYSTEM SAID MR. ROSENBLUM ACCORDING TO A REPORT FROM MOODY'S ON THE EFFECT OF THE EARTHQUAKE QUOTE A MORE VULNERABLE CLASS OF DEBT IS CERTIFICATES OF PARTICIPATION WHERE DEBT SERVICE PAYMENTS ARE CONDITIONAL UPON HAVING BENEFICIAL USE OF THE ASSET BEING LEASED QUOTE THIS FORM OF BOND IS POPULAR IN THE LOS ANGELES AREA SAID MOODY'S WITH NEARLY ONE HUNDRED CERTIFICATES OF PARTICIPATION RATED BY MOODY'S IN LOS ANGELES COUNTY ALONE BUT ABOUT FORTY PERCENT OF THESE CARRY THE SAME RATINGS AS THE CITY AND COUNTY OF LOS ANGELES WHICH ARE UNLIKELY TO BE SHARPLY DOWNGRADED ACCORDING TO THE MOODY'S REPORT THE EFFECT OF A NATURAL DISASTER ON DEBT SECURED BY A GENERAL GOVERNMENT PLEDGE IS INDIRECT THIS TYPE OF DEBT INCLUDES GENERAL OBLIGATION AND ESSENTIAL PURPOSE REVENUE BONDS AND THE PLEDGE TO MAKE DEBT SERVICE PAYMENTS IS ABSOLUTE AND UNCONDITIONAL MOODY'S SAID IT DOES NOT EXPECT ANY RATING ADJUSTMENT OVER THE SHORT TERM TO RESULT FOR SUCH BONDS THESE SO CALLED GENERAL OBLIGATION BONDS WHICH ARE ISSUED BY STATE AND LOCAL ISSUERS ARE UNLIKELY TO BE ADVERSELY AFFECTED BY AN EARTHQUAKE SINCE THEY ARE NOT BACKED BY ANY SPECIFIC PROJECT BY THE FULL FAITH AND CREDIT OF THE ISSUER SO EVEN THOUGH THERE IS SEVERE DAMAGE TO CERTAIN SECTORS OF LOS ANGELES COUNTY THAT DOES NOT TOTALLY HAMPER THE COUNTY'S ABILITY TO PAY OFF ITS GENERAL OBLIGATION BONDS THE BIG CAVEAT IN THIS EQUATION CONCERNS THE AREA'S HIGHWAYS AND HOW LONG IT WILL BE BEFORE THEY ARE REPAIRED TOURISM AND BUSINESS SPENDING IN LOS ANGELES COULD DROP OFF IF REPAIRS ARE LENGTHY AND OVER TIME THIS COULD MAKE DEBT PAYMENTS DIFFICULT THE IMPACT OF THE EARTHQUAKE ON CALIFORNIA WILL BE DIFFERENT THAN THAT OF OTHER RECENT NATURAL DISASTERS INCLUDING HURRICANE ANDREW AND THE SAN FRANCISCO EARTHQUAKE SAID MR. ROSENBLUM OF SANFORD AND BERNSTEIN IN THE PAST SUCH NATURAL DISASTER HAVE HAD LITTLE IMPACT ON MUNICIPAL BONDS HE SAID BUT CALIFORNIA HAS GONE THROUGH A VERY ROUGH PERIOD LATELY AND THIS EARTHQUAKE COULD DISCOURAGE MORE INVESTMENTS AND TOURISTS IN THE AREA THE EARTHQUAKE HAS ALREADY DELAYED AT LEAST ONE MUNICIPAL BOND OFFERING SLATED FOR PRICING THIS WEEK A TWENTY MILLION DOLLAR ANAHEIM PUBLIC FINANCING AUTHORITY WATER REVENUE BOND ISSUE TO BE SOLD COMPETITIVELY TODAY WAS DELAYED UNTIL JANUARY TWENTY FIFTH DESPITE THE ABSENCE OF DIRECT DAMAGE TO THE ISSUER'S SYSTEM MEANWHILE A TWO HUNDRED TWENTY FIVE POINT NINE MILLION DOLLAR REFUNDING EXPECTED THIS WEEK FROM SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY IS BEING POSTPONED MAINLY BECAUSE OF STRUCTURAL PROBLEMS WITH THE OFFERING ITSELF SCATTERED BUYING LIFTED PRICES OF TREASURY SECURITIES WITH THE BEST GAINS POSTED BY ISSUES MATURING IN TEN YEARS OR LESS THERE WAS NO TRADING IN THE CASH BOND MARKET MONDAY IN OBSERVANCE OF THE MARTIN LUTHER KING JUNIOR HOLIDAY THE BOND MARKET BEGAN THE DAY LOWER CONTINUING THE SELL OFF SPARKED LATE LAST WEEK BY REPORTS SHOWING STRONGER THAN EXPECTED BUSINESS ACTIVITY BUT BY MIDMORNING THE TIDE BEGAN TO TURN TRADERS SAID THE MARKET GOT A LIFT FROM SWAP RELATED BUYING OF INTERMEDIATE NOTES AND FROM BUYING RELATED TO MUNICIPAL DEFEASANCE UNDER DEFEASANCE A STATE OR LOCAL GOVERNMENT PRE REFUNDS OLDER HIGHER INTEREST DEBT BY ISSUING NEW SECURITIES THE PROCEEDS FROM THE NEW ISSUANCE ARE FREQUENTLY INVESTED IN TREASURY SECURITIES UNTIL THE OLDER DEBT CAN BE CALLED ABOUT THREE HUNDRED MILLION DOLLARS OF MUNICIPAL REFUNDING DEBT WAS ISSUED YESTERDAY PARTICIPANTS SAID DEALER SHORT COVERING ALSO HELPED PUSH PRICES HIGHER IN A SHORT SALE A TRADER BETS PRICES WILL GO LOWER BY SELLING A BORROWED SECURITY IN HOPES OF BUYING IT BACK AT A LOWER LEVEL AND POCKETING THE DIFFERENCE 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 THREE HUNDRED SIXTY DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A THREE HUNDRED SIXTY FIVE DAY YEAR BOTH ISSUES ARE DATED JANUARY TWENTIETH THE THIRTEEN WEEK BILLS MATURE APRIL TWENTY FIRST NINETEEN NINETY FOUR AND THE TWENTY SIX WEEK BILLS MATURE JULY TWENTY FIRST NINETEEN NINETY FOUR PAPER HUNGRY INVESTORS SNAPPED UP TWO POINT SIX EIGHT BILLION DOLLARS OF NEW BONDS YESTERDAY IN FIFTEEN DIFFERENT OFFERINGS MANY OF THE OFFERINGS WERE BY FIRST TIME OR INFREQUENT ISSUERS INCLUDING DUTY FREE INTERNATIONAL INCORPORATED'S ONE HUNDRED FIFTEEN MILLION DOLLAR OFFERING TYCO INTERNATIONAL LIMITED'S ONE HUNDRED FIVE MILLION DOLLAR DEBT OFFERING AND A TWO HUNDRED FIFTY MILLION DOLLAR DEBT OFFERING FROM MITCHELL ENERGY AND DEVELOPMENT CORPORATION OTHER DEALS TO HIT THE MARKET WERE SOUTHERN UNION COMPANY'S FOUR HUNDRED SEVENTY FIVE MILLION DOLLAR DEAL PUBLIC SERVICE COMPANY OF COLORADO'S TWO HUNDRED TWELVE POINT SEVEN MILLION DOLLAR TWO PART ISSUE AND UNION PACIFIC CORPORATION'S ONE HUNDRED FIFTY MILLION DOLLAR NOTE OFFERING IN COMPETITIVE BIDS EARLY IN THE DAY VIRGINIA ELECTRIC AND POWER COMPANY SOLD ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF FIRST AND REFUNDING MORTGAGE BONDS WHILE G. T. E. NORTH INCORPORATED A UNIT OF G. T. E. CORPORATION SOLD TWO HUNDRED FIFTY MILLION DOLLARS OF DEBENTURES TRADING IN THE INVESTMENT GRADE MARKET WAS LIGHT YIELD SPREADS OF CORPORATE BONDS OVER COMPARABLE TREASURY SECURITIES CONTINUED TO NARROW AS INVESTORS SEARCHED FOR PLACES TO INVEST CAPITAL SINCE THE NEW ISSUE CALENDAR HAS BEEN SURPRISINGLY LIGHT TRADERS SAID NARROWING YIELD SPREADS ARE OFTEN A SIGN OF STRENGTHENING DEMAND QUOTE THERE'S A LOT OF MONEY OUT THERE AND THERE'S NO PLACE FOR IT TO GO QUOTE ONE TRADER COMMENTED IN THE JUNK BOND MARKET TRADING WAS LIGHT WITH THE PRICES OF MANY BONDS ENDING UNCHANGED CURRENT COUPON MORTGAGE BACKED SECURITIES FINISHED MODERATELY HIGHER IN SECONDARY DEALINGS GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SIX AND ONE SLASH TWOS FOR FEBRUARY DELIVERY WERE UP FIVE THIRTY SECONDS AT NINETY NINE AND TWENTY TWO THIRTY SECONDS FEDERAL HOME LOAN MORTGAGE CORPORATION GOLD SIX AND ONE SLASH TWOS WERE UP SIX THIRTY SECONDS AT NINETY NINE AND TWENTY EIGHT THIRTY SECONDS AND FEDERAL NATIONAL MORTGAGE ASSOCIATION SIX AND ONE SLASH TWOS WERE UP FIVE THIRTY SECONDS AT NINETY NINE AND TWENTY THREE THIRTY SECONDS SEPARATELY MORTGAGE BACKED PARTICIPANTS WERE SORTING OUT THE EFFECTS OF THE LOS ANGELES EARTHQUAKE ON MORTGAGE SECURITIES ISSUED BY PRIVATE COMPANIES AS WELL AS BY THE QUASI FEDERAL AGENCIES MOST ANALYSTS SAID IT WAS TOO EARLY TO GAUGE THE EXTENT OF THE DESTRUCTION OR HOW MANY HOMES DAMAGED BY THE EARTHQUAKE WILL RESULT IN HOMEOWNERS WALKING AWAY FROM THEIR MORTGAGE LOANS LYNN ADLER CONTRIBUTED TO THIS ARTICLE THESE ARE SWEET TIMES FOR JAPAN'S GIANT SECURITIES COMPANIES AFTER FOUR YEARS OF SAGGING EARNINGS AND BRUISED SHARE PRICES PROFITS ARE UP AND BUSINESS IS GROWING THE BIG FOUR BROKERAGE FIRMS ARE AMONG THE BEST PERFORMERS IN TOKYO OUTPACING A MARKET THAT IS OFF TO A STRONG NINETEEN NINETY FOUR DON'T BET ON THE LUCK LASTING THE BROKERAGE FIRMS STILL ARE HAMSTRUNG BY EXCESSIVE COSTS AND VULNERABLE TO A NEW MARKET DOWNTURN ANALYSTS SAY IN THE MIDST OF THIS YEAR'S MINI BULL RUN STANDARD AND POOR'S ASIA DELIVERED ANOTHER BLOW LOWERING ITS RATINGS OF JAPAN'S FOUR BROKERAGE FIRM GIANTS NOMURA SECURITIES COMPANY DAIWA SECURITIES COMPANY NIKKO SECURITIES COMPANY AND YAMAICHI SECURITIES COMPANY QUOTE THE SECURITIES INDUSTRY IN JAPAN WILL CONTINUE TO BE NEGATIVELY AFFECTED BY LOW MARKET TURNOVER AND LIMITED NEW EQUITY OFFERINGS QUOTE S. AND P. SAID IN THIS KIND OF ENVIRONMENT IT WILL BE DIFFICULT FOR THEM TO RECOVER MUCH OF THEIR PAST EARNINGS POWER S. AND P. LAST DOWNGRADED NOMURA IN NINETEEN NINETY ONE AND THE OTHER THREE IN NINETEEN NINETY TWO THE TOKYO MARKET HAS BEEN UNUSUALLY BUOYANT LATELY EVEN WITH A SECOND STRAIGHT DAY OF LOSSES TUESDAY THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX CLOSED AT EIGHTEEN THOUSAND FIVE HUNDRED FOURTEEN POINT FIVE FIVE UP SIX POINT THREE PERCENT IN THE PAST TWO WEEKS THE BROKERS HAVE DONE EVEN BETTER NIKKO IS UP EIGHT POINT THREE PERCENT NOMURA IS UP NINE POINT SEVEN PERCENT DAIWA HAS GAINED TWELVE POINT SEVEN PERCENT AND YAMAICHI HAS ADVANCED A WHOPPING TWENTY TWO POINT SEVEN PERCENT THE NIHON KEIZAI SHIMBUN NEWSPAPER THIS WEEK SHARPLY BOOSTED ITS PROJECTIONS FOR THE BIG FOUR'S PROFITS IN THE FISCAL YEAR ENDING IN MARCH THE BROKERAGE FIRMS' SUNNIER OUTLOOK REFLECTS A SURGE IN TRADING VOLUME AS WELL AS THE PRICE RALLY TURNOVER WAS MORE THAN FOUR HUNDRED FIFTY MILLION SHARES A DAY LAST WEEK COMPARED WITH ABOUT TWO HUNDRED MILLION SHARES A DAY AT THE END OF NINETEEN NINETY THREE THAT MAKES AN ENORMOUS DIFFERENCE TO THE PROFITS OF THESE COMMISSION DEPENDENT FIRMS BUT IT ISN'T SUSTAINABLE THE BEARS SAY VOLUME ALREADY HAS BEEN LOWER THIS WEEK OVER THE LONGER TERM THE GOVERNMENT'S ARTIFICIAL SUPPORT FOR THE MARKET WILL CONTINUE TO DAMP TRADING SAYS YOSHIO SHIMA ASSISTANT DIRECTOR OF S. AND P. ASIA THE MARKET IS BEING KEPT AT QUITE HIGH VALUATIONS HE SAYS AND THAT WILL RESTRICT MARKET ACTIVITY ANOTHER DEMON CORPORATE BLOAT THE BIGGEST PROBLEM IS THAT THEIR EXPENSES ARE WAY TOO HIGH SAYS BETSY DANIELS AN ANALYST AT MORGAN STANLEY IN TOKYO NOMURA ONE OF THE STRONGEST HAS A RETURN ON EQUITY TARGET OF FIVE PERCENT THE AVERAGE TARGET OF A U. S. INVESTMENT BANK IS TWENTY PERCENT FOR THE YEAR ENDED MARCH THIRTY FIRST NINETEEN NINETY THREE SHE NOTES NOMURA'S RETURN ON EQUITY WAS JUST ZERO POINT ONE FIVE PERCENT OF COURSE TOKYO HAS ITS BULLS THESE DAYS PARTICULARLY AMONG THE FOREIGN INVESTORS WHO HAVE LED THE RECENT BUYING THEY SEE A MARKET OVERDUE FOR A RISE AFTER FOUR BAD YEARS THEY THINK THE JAPANESE GOVERNMENT'S MULTI TRILLION YEN PUBLIC WORKS SPLURGE WILL SPARK A BROADER ECONOMIC RECOVERY CORPORATE PROFITS WILL DOUBLE OVER TWO YEARS PREDICTS CHRIS MITCHINSON A LONGTIME JAPAN STRATEGIST FOR SALOMON BROTHERS ASIA LIMITED WHO IS NOW A PRIVATE JAPANESE INVESTMENT CONSULTANT IN LONDON QUOTE WE THINK THE NIKKEI WILL BE BETWEEN TWENTY FIVE THOUSAND AND THIRTY THOUSAND BY THE END OF THE YEAR QUOTE HE SAYS JAPANESE INVESTORS WILL JOIN THE FOREIGN STOCK BUYERS LATER THIS YEAR AND RECOMMENDS LOADING UP ON SHARES OF NOMURA AND DAIWA EVEN SUCH A RALLY HOWEVER MAY NOT BENEFIT THE BROKERAGE FIRMS FINANCIAL MARKET DEREGULATION MR. SHIMA NOTES ALREADY HAS JAPAN'S BELEAGUERED BANKS ENCROACHING ON THE BROKERS' TURF CORPORATE BOND UNDERWRITING FEES HAVE FALLEN BY TWO THIRDS IN THE PAST YEAR BECAUSE OF COMPETITION HE SAYS WE EXPECT THE NEGATIVE IMPACT OF DEREGULATION TO CONTINUE IF IT'S IN BOND UNDERWRITING NOW WHY NOT EQUITY LINKED UNDERWRITING IN THE FUTURE THE BROKERS THEMSELVES OF COURSE ARE MORE OPTIMISTIC OUR CONSOLIDATED EARNINGS HAVE STARTED TO IMPROVE A NOMURA SPOKESMAN SAYS WE DON'T THINK FINANCIAL LIBERALIZATION AND INCREASED COMPETITION WILL AFFECT OUR EARNINGS SAYS A NIKKO OFFICIAL WE HAVE NO NEGATIVE FORECASTS BESIDES EVEN AFTER THE BAD YEARS JAPAN'S BROKERAGE FIRMS ARE STILL RICH QUOTE NOMURA STILL HAS A TON OF CASH QUOTE MS. DANIELS SAYS ADDING THAT THE COMPANIES CAN CONTINUE TO WEATHER A BEAR MARKET THE CAPITAL THEY BUILT UP IN THE LATE NINETEEN EIGHTIES RALLY MEANS THAT EVEN WITH YESTERDAY'S DOWNGRADES THE JAPANESE BROKERAGE FIRMS STILL HAVE HIGHER RATINGS THAN MANY OF THEIR MORE PROFITABLE U. S. COUNTERPARTS S. AND P. LOWERED ITS RATINGS OF DEBT ISSUED BY GUARANTEED SUBSIDIARIES OF DAIWA TO SINGLE A ONE FROM SINGLE A ONE PLUS NIKKO WAS LOWERED TO SINGLE A FROM SINGLE A PLUS NOMURA'S RATING WAS DROPPED TO DOUBLE A FROM DOUBLE A PLUS YAMAICHI FELL TO SINGLE A MINUS FROM SINGLE A MINNESOTA MUTUAL LIFE INSURANCE COMPANY SAID JOHN CLYMER ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER RESIGNED TO QUOTE RE ENTER THE INVESTMENT MANAGEMENT BUSINESS QUOTE MR. CLYMER FORTY SIX YEARS OLD SAID IN A LETTER THE COMPANY MADE PUBLIC THAT HE PLANS TO MANAGE EITHER INSTITUTIONAL OR PRIVATE FUNDS FROM A BASE IN SAINT PAUL HE JOINED THE TEN BILLION DOLLAR ASSET MUTUAL INSURANCE CONCERN IN NINETEEN SEVENTY TWO AS AN INVESTMENT ANALYST SERVED AS VICE PRESIDENT OF INVESTMENTS AND WAS NAMED PRESIDENT IN NINETEEN NINETY ONE HE BECAME CHIEF EXECUTIVE LAST YEAR COLEMAN BLOOMFIELD THE SIXTY SEVEN YEAR OLD CHAIRMAN OF MINNESOTA MUTUAL'S BOARD OF TRUSTEES WHO RELINQUISHED THE C. E. O. TITLE TO MR. CLYMER EIGHT MONTHS AGO WILL SERVE AS CHIEF EXECUTIVE WHILE THE COMPANY CONDUCTS A SEARCH FOR A SUCCESSOR FREDERICK W. BUCKMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF C. M. X. ENERGY CORPORATION'S PRINCIPAL SUBSIDIARY CONSUMERS POWER COMPANY IS RESIGNING TO ACCEPT THE SAME POSITIONS AT PACIFICORP A PORTLAND OREGON UTILITY MICHAEL G. MORRIS FORTY SEVEN FORMERLY CHIEF OPERATING OFFICER OF THE CONSUMERS POWER UNIT WAS NAMED TO SUCCEED MR. BUCKMAN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR. MORRIS JOINED CONSUMERS POWER IN NINETEEN EIGHTY EIGHT AND LED NEGOTIATIONS SETTLING A DISPUTE WITH THE MICHIGAN PUBLIC SERVICE COMMISSION OVER CONFLICTS ARISING FROM THE AMOUNT OF ENERGY IT PURCHASED FROM ITS FORTY NINE PERCENT OWNED MIDLAND ENERGY PLANT MR. BUCKMAN FORTY SEVEN BEGAN HIS CAREER WITH CONSUMERS POWER AS AN INTERN IN NINETEEN SIXTY SEVEN HE HAS BEEN PRESIDENT OF THE SUBSIDIARY SINCE NINETEEN EIGHTY EIGHT AND CHIEF EXECUTIVE OFFICER SINCE NINETEEN NINETY TWO TRIBUNE COMPANY'S TRIBUNE ENTERTAINMENT PLANS AN ASSAULT ON THE COUNTRY MUSIC ENTERTAINMENT MARKETPLACE WITH A WEEKLY SYNDICATED TELEVISION SHOW CALLED QUOTE THE ROAD QUOTE AND A WEEKLY RADIO PROGRAM NEXT FALL TRIBUNE ALSO PLANS RELATED VENTURES INCLUDING PAY PER VIEW CABLE SPECIALS AND HOME VIDEO RELEASES IN ADDITION OVER A PERIOD OF THREE TO FOUR YEARS THE COMPANY EXPECTS TO DEVELOP A CHAIN OF COUNTRY MUSIC CLUBS CONCERTS AND A MULTIMEDIA DIRECT MARKETING OPERATION SAID DON HACKER TRIBUNE ENTERTAINMENT PRESIDENT AND CHIEF EXECUTIVE THE FIRST YEAR'S INVESTMENT IN THE EVENTS WILL BE ABOUT TEN MILLION DOLLARS MR. HACKER SAID THE ROAD TO BE PRODUCED BY LOS ANGELES BASED HIGH FIVE PRODUCTIONS WILL FOLLOW COUNTRY ARTISTS IN CONCERT BACK STAGE AND ON THE ROAD IN A WAY THAT HASN'T BEEN DONE MR. HACKER SAID IT WILL BE CARRIED BY TRIBUNE'S SEVEN TELEVISION STATIONS SHERMAN N. MULLIN WILL RETIRE AS PRESIDENT OF LOCKHEED ADVANCED DEVELOPMENT COMPANY KNOWN AS THE QUOTE SKUNK WORKS QUOTE AT THE END OF FEBRUARY HE WILL BE SUCCEEDED BY JACK S. GORDON FIFTY THREE WHO HAS BEEN EXECUTIVE VICE PRESIDENT OF THE UNIT SINCE NINETEEN NINETY MR. MULLIN FIFTY EIGHT YEARS OLD JOINED WHAT WAS THEN CALLED LOCKHEED ELECTRONICS COMPANY IN NINETEEN FIFTY NINE AS AN ELECTRONICS ENGINEER HE HELD A NUMBER OF DIFFERENT POSTS AT LOCKHEED BEFORE BEING NAMED PRESIDENT OF THE SKUNK WORKS IN DECEMBER NINETEEN NINETY FOUNDED IN NINETEEN FORTY THREE THE UNIT IS THE DESIGNER OF SOME OF THE NATION'S MOST SECRET AND ELABORATE AIRCRAFT INCLUDING THE U. TWO AND S. R. SEVENTY ONE SPY PLANES AND THE F. ONE SEVENTEEN A RADAR EVADING OR STEALTH FIGHTER ANNUAL SALES ARE GROWING BY TWENTY PERCENT EARNINGS BY FORTY PERCENT THE COMPANY'S KEY BUSINESS SELLING MODERATE TO HIGH END CEILING FANS EXCLUSIVELY THROUGH LIGHTING SHOWROOMS IS GAINING MARKET SHARE THERE ISN'T ANY LONG TERM DEBT AND MANAGEMENT HAS A FORTY PERCENT STAKE IN THE COMPANY ITS ROLE AS THE PRIMARY SUPPLIER OF LAMPS TO BOMBAY COMPANY ONE OF THE HOTTEST RETAILERS IS GROWING WITH ALL OF THAT YOU'D THINK CRAFTMADE WOULD INSPIRE A WHIRLWIND OF ACTIVITY AMONG INVESTORS BUT THE STOCK HAS BARELY CREATED A BREEZE IN THE PAST YEAR IT HAS HOVERED FOR THE MOST PART BETWEEN NINE DOLLARS AND TEN DOLLARS CRAFTMADE'S EARNINGS MULTIPLE OF FIFTEEN BASED ON PROJECTED NINETEEN NINETY FOUR EARNINGS IS LESS THAN HALF OF THE COMPANY'S EXPECTED GROWTH RATE INDICATING THE STOCK MIGHT BE UNDERVALUED AND THERE AREN'T EVEN ENOUGH ANALYSTS FOLLOWING THE COMPANY TO PUT TOGETHER A SIGNIFICANT FAN CLUB THE PROBLEM QUOTE NOBODY KNOWS THIS COMPANY EXISTS QUOTE SAYS DICK EDELMAN ANALYST AT SOUTHWEST SECURITIES IN DALLAS BOMBAY RECEIVES ALL THE RECOGNITION NOBODY EVER PAYS ATTENTION TO ITS VENDORS THAT WILL CHANGE FOR CRAFTMADE ANALYSTS SAY IF THE COMPANY'S RESULTS CONTINUE TO INCREASE AT A HEALTHY PACE AND THERE'S NO REASON TO THINK THAT WON'T HAPPEN CONTENDS TIM EBRIGHT A PORTFOLIO MANAGER AT EAGLE ASSET MANAGEMENT A SAINT PETERSBURG FLORIDA FUND COMPANY THAT HOLDS THREE HUNDRED FIFTEEN THOUSAND CRAFTMADE SHARES TO BE SURE THERE ARE SOME WELL DEFINED RISKS ALTHOUGH IT IS QUIETLY PROSPERING IN THE SHADOW OF BOMBAY COMPANY'S GROWTH CRAFTMADE RELIES HEAVILY ON THE FORT WORTH RETAILER'S ORDERS AS MUCH AS SEVENTY FIVE PERCENT OF CRAFTMADE'S LAMP DIVISION REVENUE COMES FROM BOMBAY ANY MISSTEP BY BOMBAY OR PROBLEMS ON CRAFTMADE'S END WITH DELIVERY OR QUALITY COULD HURT EARNINGS TO DECREASE ITS DEPENDENCE ON BOMBAY THE COMPANY HAS BEEN COURTING NEW CUSTOMERS THE HORCHOW COLLECTION A CATALOG COMPANY HAS ALREADY SIGNED ON AND CRAFTMADE OFFICIALS SAY THEY EXPECT DISCOUNT RETAILER TUESDAY MORNING TO FOLLOW SOON IN ADDITION CRAFTMADE HAS BEGUN SELLING ITS LAMPS IN THE LIGHTING SHOWROOMS WHERE ITS CEILING FANS HAVE BEEN A HIT AND IN EARLY NINETEEN NINETY FOUR WILL INTRODUCE ITS LAMPS IN FURNITURE STORES ANOTHER POTENTIAL PITFALL IS THAT CRAFTMADE DEPENDS SOLELY ON ONE TAIWANESE MANUFACTURER FOR ITS SUPPLY OF FANS THAT EXCLUSIVE LONG TERM RELATIONSHIP PROVIDES FOR AMPLE CAPACITY FOR INCREASED PRODUCTION BUT A MAJOR PROBLEM OR DISRUPTION AT THE FACILITY WOULD WREAK HAVOC ON CRAFTMADE'S ABILITY TO MEET CUSTOMER DEMAND AND WOULD DEVASTATE INCOME STILL SOME ANALYSTS AND MONEY MANAGERS HOLD HIGH EXPECTATIONS FOR THE COMPANY FOR THE FISCAL YEAR ENDED JUNE THIRTIETH REVENUE LEAPED TO TWENTY SEVEN POINT FIVE MILLION DOLLARS FROM SIX HUNDRED THOUSAND DOLLARS IN NINETEEN EIGHTY FIVE WHEN CRAFTMADE WAS FOUNDED REVENUE SHOULD EXCEED THIRTY TWO MILLION DOLLARS IN NINETEEN NINETY FOUR ANALYSTS ESTIMATE THE COMPANY WILL EARN SIXTY SIX CENTS A SHARE THIS YEAR A THIRTY EIGHT PERCENT INCREASE FROM THE FORTY EIGHT CENTS POSTED IN NINETEEN NINETY THREE ALSO IMPRESSING ANALYSTS CRAFTMADE MANAGEMENT'S FRUGAL FISCAL PRACTICES THE COMPANY'S TOP FOUR OFFICERS COMBINED COMMAND JUST FOUR HUNDRED THOUSAND DOLLARS IN SALARY JAMES RIDINGS THE COMPANY'S FOUNDER AND CHIEF EXECUTIVE OFFICER IS ON FORBES'S LIST OF THE TEN LOWEST PAID CHIEF EXECUTIVES AMONG THE COUNTRY'S BEST SMALL COMPANIES ADMINISTRATIVE EXPENSES HAVE DECREASED TO NINETEEN POINT EIGHT PERCENT OF SALES IN THE MOST RECENT QUARTER FROM TWENTY FIVE POINT EIGHT PERCENT IN NINETEEN NINETY ONE DESPITE THE HEADY GROWTH BACK IN NINETEEN NINETY ONE IT APPEARED THAT EXECUTIVES MAY NOT HAVE BEEN CIRCUMSPECT IN ONE DECISION THEIR FOUR HUNDRED FIFTY THOUSAND DOLLAR PURCHASE OF D. M. I. PRODUCTS A STRUGGLING MAKER OF TABLE AND FLOOR LAMPS IT TURNED OUT THEY HAD UNDERESTIMATED D. M. I.'S SHORTCOMINGS WHICH INCLUDED LAX QUALITY CONTROL AND PRODUCT SHIPMENT DELAYS IN THE FIRST YEAR THE LAMP DIVISION LOST TWO HUNDRED THOUSAND DOLLARS CAUSING A SEVENTY PERCENT DROP IN OVERALL EARNINGS BUT D. M. I. HAD ONE ASSET THAT CRAFTMADE WANTED AND THAT PROVED INVALUABLE ITS CUSTOMER LIST INCLUDED BOMBAY A RETAILER WITH WHICH CRAFTMADE HADN'T YET CONNECTED BY WHIPPING D. M. I. INTO SHAPE CRAFTMADE WAS ABLE TO EXPAND LAMP SALES TO BOMBAY COMPANY TO MORE THAN TWO MILLION DOLLARS IN NINETEEN NINETY THREE FROM LESS THAN FIFTY THOUSAND DOLLARS IN NINETEEN NINETY ONE SALES ARE EXPECTED TO DOUBLE IN NINETEEN NINETY FOUR MORE IMPORTANT THE LAMP DIVISION CONTRIBUTED MORE THAN FIVE HUNDRED THOUSAND DOLLARS OR NINETEEN PERCENT TO CRAFTMADE'S PRETAX PROFIT IN NINETEEN NINETY THREE THAT PURCHASE HAS PROVEN TO BE A WORTHY BUY SAYS ALAN D. BERNSTEIN ANALYST AT HAMILTON INVESTMENTS CHICAGO WHO FORESEES A FIFTEEN DOLLAR STOCK PRICE THIS YEAR UNTIL THE D. M. I. PURCHASE NINETY PERCENT OF CRAFTMADE'S BUSINESS WAS IN CEILING FANS AND ALTHOUGH LAMP SALES ARE EXPECTED TO PROVIDE THE GREATEST GROWTH OPPORTUNITY EXPANDING BY AS MUCH AS FORTY PERCENT A YEAR FANS REMAIN THE COMPANY'S STRENGTH WITH SEVENTY FIVE PERCENT OF THE COMPANY'S SALES SALES IN THAT DIVISION ARE EXPECTED TO GROW ABOUT FIFTEEN PERCENT A YEAR CRAFTMADE SELLS ITS FANS IN ABOUT ONE QUARTER OF THE FIVE THOUSAND FOUR HUNDRED LIGHTING SHOWROOMS NATIONWIDE GIVING IT PLENTY OF GROWTH POTENTIAL THE COMPANY IS SUPPLYING ABOUT EIGHT NEW SHOWROOMS A MONTH A SHARE N. L. INDUSTRIES HOUSTON LAST WEEK TRADED AT FIVE POINT FIVE TIMES ITS AVERAGE DAILY VOLUME AND DROPPED TWENTY PERCENT TO FOUR DOLLARS AND FIFTY CENTS AFTER STANDARD AND POOR'S SAID IT WOULD REMOVE THE COMPANY FROM THE S. AND P. FIVE HUNDRED STOCK INDEX N. L. WHICH WAS REMOVED AFTER THE CLOSE OF TRADING MONDAY WAS PART OF THE CHEMICAL INDUSTRY GROUP WHERE IT ACCOUNTED FOR LESS THAN ONE PERCENT OF THE GROUP'S MARKET VALUE IT WAS REPLACED WITH EASTMAN CHEMICAL THE EASTMAN KODAK SPIN OFF EZCORP THE AUSTIN PAWN SHOP CHAIN RECENTLY PROFILED IN THIS COLUMN GAINED NINE POINT SEVEN PERCENT ON NEARLY DOUBLE ITS AVERAGE DAILY VOLUME ANALYSTS AT KIDDER PEABODY ON THURSDAY INCLUDED EZCORP AS A TOP SMALL CAP PICK FOR NINETEEN NINETY FOUR SHARES OF CELEBRITY A TYLER MAKER OF ARTIFICIAL FLOWERS SHED MORE THAN EIGHTEEN PERCENT AFTER THE COMPANY SAID IT EXPECTS TO POST A LOSS FOR ITS SECOND QUARTER ENDED DECEMBER THIRTY FIRST THE COMPANY ATTRIBUTED THE WEAKNESS LARGELY TO POOR PERFORMANCE AT ITS MAGISILK UNIT CELEBRITY ALSO HAD CONSIDERABLE NONRECURRING EXPENSES IN THE QUARTER ASSOCIATED WITH ITS ACQUISITION OF CLUETT CORPORATION A SUPPLIER OF ARTIFICIAL TREES AND PLANTS FOR THE YEAR EARLIER QUARTER CELEBRITY EARNED ONE POINT ONE MILLION DOLLARS OR TWENTY SEVEN CENTS A SHARE BABBAGE'S THE CONSUMER SOFTWARE RETAILER REVIEWED HERE LAST WEEK SAID MONDAY THAT DECEMBER SALES AT STORES OPEN AT LEAST A YEAR TUMBLED FIFTEEN PERCENT THE COMPANY BLAMED THE WEAKNESS ON ANEMIC VIDEO GAME SALES AND SAID IT EXPECTS GROSS MARGINS IN THE QUARTER TO BE HURT BY VIDEO GAME MARKDOWNS TOTAL SALES FOR DECEMBER WERE SIXTY FOUR POINT TWO NINE MILLION DOLLARS UP MARGINALLY FROM SIXTY FOUR POINT TWO THREE MILLION DOLLARS A YEAR EARLIER VIACOM INCORPORATED REGAINED THE INITIATIVE IN THE HIGH STAKES BATTLE FOR CONTROL OF PARAMOUNT COMMUNICATIONS INCORPORATED BY BOOSTING ITS BID TO ABOUT NINE POINT SEVEN BILLION DOLLARS OR ABOUT EIGHTY ONE DOLLARS AND TWENTY TWO CENTS A SHARE THE CURRENT MARKET VALUE OF THE NEW OFFER STILL FELL SHORT OF THE TEN POINT ONE BILLION DOLLARS EIGHTY FOUR DOLLAR AND ONE CENT A SHARE BID BY RIVAL Q. V. C. NETWORK INCORPORATED BUT MANY TAKEOVER STOCK TRADERS SAID THEY PREFER VIACOM'S BID BECAUSE UNLIKE Q. V. C.'S IT CONTAINS A NEW PROVISION TO PROTECT SHAREHOLDERS AGAINST A DOWNTURN IN THE PRICE OF VIACOM'S STOCK A MAJOR COMPONENT OF ITS CASH AND STOCK BID THE TIMING OF VIACOM'S NEW OFFER WHICH EXPIRES JANUARY THIRTY FIRST MAY SET UP A TENSE TWO DAY FINALE TO THE BIDDING WAR FOR PARAMOUNT THE PUBLISHING AND ENTERTAINMENT GIANT MANY TRADERS PREDICT THAT Q. V. C. WILL HAVE TO REVISE ITS BID BY JANUARY THIRTY FIRST TO MAKE SURE VIACOM DOESN'T GAIN THE FIFTY POINT ONE PERCENT OF PARAMOUNT SHARES NEEDED TO WIN THE CONTEST THEN BOTH SIDES HAVE ONE MORE DAY FEBRUARY FIRST TO MAKE THEIR BEST AND FINAL OFFER UNDER RULES SET BY PARAMOUNT THE FOUR MONTH LONG BIDDING CONTEST FOR PARAMOUNT HAS PITTED TWO DIVERSE COALITIONS OF CABLE TELEVISION AND TELECOMMUNICATIONS GIANTS IN THE RACE TO ACQUIRE ONE OF THE LAST REMAINING INDEPENDENT MOVIE STUDIOS AND FILM LIBRARIES UNDER THE BIDDING TERMS SET BY PARAMOUNT'S BOARD VIACOM'S NEW OFFER MEANS BOTH SIDES NOW HAVE TO KEEP THEIR OFFERS OPEN FOR TEN BUSINESS DAYS UNTIL JANUARY THIRTY FIRST PEOPLE CLOSE TO Q. V. C. SAID THE HOME SHOPPING CONCERN IS EXPLORING WAYS TO FORCE THE BIDDING CONTEST TO A QUICK CONCLUSION WITHOUT BREACHING THE TERMS OF THE BIDDING PROCEDURES PEOPLE IN THE Q. V. C. CAMP INSIST THEIR OFFER REMAINS CLEARLY SUPERIOR TO VIACOM'S NEW TERMS AND THAT VIACOM TECHNICALLY STILL HASN'T INCREASED ITS BID Q. V. C. HAS MAINTAINED THAT IT DOESN'T INTEND TO RAISE ITS BID THOUGH SOME TRADERS THINK THE NEW OFFER BY VIACOM A CABLE T. V. COMPANY FORCES Q. V. C. TOO TO CONSIDER SOME FORM OF PRICE PROTECTION FOR THE STOCK PORTION OF ITS CASH AND STOCK OFFER BARRY DILLER CHIEF EXECUTIVE OFFICER OF Q. V. C. SAID IN A TELEPHONE INTERVIEW YESTERDAY THAT HE WILL FORMALLY RESPOND TODAY BUT QUICKLY ADDED THAT INVESTORS SHOULDN'T QUOTE LOOK TO Q. V. C. QUOTE TO RAISE ITS OFFER TODAY MANY WALL STREET TRADERS YESTERDAY SAID THEY WOULD DEFINITELY TENDER TO VIACOM UNLESS Q. V. C. CHANGES ITS BID CHARLES LEEDS A PARTNER AT OMEGA ADVISERS INCORPORATED WHICH OWNS MORE THAN FOUR MILLION PARAMOUNT SHARES OR THREE POINT THREE PERCENT OF THE SHARES OUTSTANDING SAID I BELIEVE EVERYONE WOULD TENDER TO VIACOM RICHARD H. SCHNEIDER A TAKEOVER STOCK TRADER AGREED THAT VIACOM'S OFFER IS A BETTER BID NOT BECAUSE OF THE CURRENT MARKET VALUE BUT BECAUSE OF THE CERTAINTY THAT HAS BEEN CREATED BY THE PRICE PROTECTION IN VIACOM'S NEW OFFER VIACOM'S NEW OFFER COMPRISES ONE HUNDRED SEVEN DOLLARS A SHARE FOR FIFTY POINT ONE PERCENT OF PARAMOUNT SHARES UP FROM ONE HUNDRED FIVE DOLLARS IN CASH IN ITS LAST BID PLUS FOUR DIFFERENT SECURITIES FOR THE REMAINING FORTY NINE POINT NINE PERCENT OF PARAMOUNT SHARES KNOWN AS THE BACK END THOSE FOUR SECURITIES ARE ZERO POINT NINE THREE ZERO SIX FIVE VIACOM NONVOTING CLASS B. COMMON SHARE VIACOM PREFERRED STOCK A THREE YEAR WARRANT TO PURCHASE VIACOM STOCK AT SIXTY DOLLARS A SHARE AND A CONTINGENT VALUE RIGHT OR CVR WHICH PROVIDES EXTRA COMPENSATION TO PARAMOUNT HOLDERS IF VIACOM B. SHARES TRADE BELOW FORTY EIGHT DOLLARS A SHARE A YEAR AFTER THE ACQUISITION VIACOM CAN EXTEND THE CVR TIMETABLE TO PROVIDE FOR THE ADDED VALUE IF VIACOM TRADES BELOW FIFTY ONE DOLLARS AFTER TWO YEARS OR FIFTY FIVE DOLLARS AFTER THREE YEARS BUT THE PROTECTION WON'T COVER ANY DROP BELOW THIRTY EIGHT DOLLARS A SHARE PROMPTING SNIPING FROM Q. V. C. BECAUSE VIACOM B. CLOSED YESTERDAY AT THIRTY SEVEN DOLLARS AND SEVENTY FIVE CENTS A SHARE DOWN ONE POINT THREE SEVEN FIVE DOLLARS ON THE AMERICAN STOCK EXCHANGE THE NEW VIACOM BID SENT PARAMOUNT SHARES SURGING ONE DOLLAR AND TWENTY FIVE CENTS A SHARE TO EIGHTY DOLLARS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ONE OF THE FEW INSTANCES SINCE A DELAWARE COURT IN DECEMBER ORDERED A NEW ROUND OF BIDDING THAT A NEW BID HASN'T DISAPPOINTED INVESTORS IN TERMS OF MARKET VALUE ALONE VIACOM'S BID WAS HIGHER BY ABOUT THREE DOLLARS AND SEVENTY CENTS A SHARE OR FOUR HUNDRED FIFTY MILLION DOLLARS THAN ITS LAST BID ANNOUNCED JAN SEVEN PARAMOUNT'S BOARD PLANS TO MEET EITHER FRIDAY OR MONDAY TO REVIEW THE NEW VIACOM BID AND THE STATUS OF ITS OWN RECOMMENDATION THAT HOLDERS ACCEPT Q. V. C.'S OFFER WHICH COMPRISES NINETY TWO DOLLARS A SHARE IN CASH FOR FIFTY POINT ONE PERCENT OF PARAMOUNT STOCK PLUS ONE POINT FOUR THREE SHARES OF Q. V. C. COMMON STOCK AND A Q. V. C. CONVERTIBLE PREFERRED STOCK FOR THE REMAINING FORTY NINE POINT NINE PERCENT THE TERMS OF THE NEW VIACOM OFFER SENT TRADERS SCURRYING TO THEIR MATHEMATICAL MODELS FOR PRICING STOCK OPTIONS TO VALUE THE CVR WHICH INCORPORATES TWO PARTIALLY OFFSETTING PUT OPTIONS ON VIACOM B. SHARES A PUT IS AN OPTION THAT RISES IN VALUE AS THE UNDERLYING SECURITY FALLS IT IS ONE OF THE FIRST TIMES THAT THESE KINDS OF DERIVATIVES SECURITIES WHOSE VALUE DEPENDS ON OTHER SECURITIES AND WHICH HAVE SWEPT WALL STREET IN THE PAST FIVE YEARS HAVE FIGURED IN SUCH A HIGH PROFILE TAKEOVER BATTLE AS THE VALUES OF THE TWO BIDS CONTINUE TO FLUCTUATE BOTH VIACOM AND Q. V. C. ARE CONTINUING TO MAKE THEIR CASE TO WALL STREET THAT EACH IS THE BETTER LONGER TERM MATCH FOR PARAMOUNT VIACOM WHICH ANNOUNCED AN ACQUISITION OF BLOCKBUSTER ENTERTAINMENT CORPORATION LAST WEEK TO GET THE MONEY TO RAISE THE CASH PORTION OF ITS PARAMOUNT BID IS ARGUING THAT THE VIDEO RETAILING OPERATIONS OF BLOCKBUSTER VIACOM'S CABLE AND T. V. OPERATIONS AND PARAMOUNT'S ENTERTAINMENT OPERATIONS WILL COMBINED PROVIDE MORE LONG TERM VALUE Q. V. C. MEANWHILE SAYS THAT MR. DILLER'S EXPERIENCE AS THE FORMER HEAD OF TWO HOLLYWOOD STUDIOS AND ARCHITECT OF THE FOX BROADCASTING NETWORK MAKES IT MORE LIKELY THAT A Q. V. C. PARAMOUNT MATCH WILL BECOME A PROGRAMMING POWERHOUSE INSTITUTIONAL INVESTORS WHO WANT TO KEEP A HAND IN PARAMOUNT'S FUTURE ARE WEIGHING BOTH ARGUMENTS WITH A DIFFERENCE OF JUST A COUPLE OF DOLLARS A SHARE BETWEEN THE TWO BIDS ONE BIG PARAMOUNT SHAREHOLDER SAYS YOU HAVE TO DECIDE WHO IS GOING TO DO A BETTER JOB OF RUNNING THE COMBINED COMPANIES AND HAVE MORE UPSIDE DOWN THE ROAD WHILE VIACOM CHAIRMAN SUMNER REDSTONE AND BLOCKBUSTER CHAIRMAN WAYNE HUIZENGA ARE STRONG EXECUTIVES QUOTE NO ONE IN THE VIACOM BLOCKBUSTER PARAMOUNT MIX KNOWS HOW TO RUN A MOVIE STUDIO WHICH IS STILL THE CROWN JEWEL OF PARAMOUNT THE WAY BARRY DILLER DOES QUOTE THIS HOLDER SAID HOWEVER AT THIS POINT IN THE BIDDING WAR MANY LONG TIME INSTITUTIONAL SHAREHOLDERS HAVE SOLD SOME IF NOT ALL OF THEIR PARAMOUNT STOCK LEAVING THE CONTEST IN THE HANDS OF ARBITRAGERS OR TAKEOVER STOCK TRADERS THESE SHORT TERM TRADERS ARE PRIMARILY INTERESTED IN SELLING THEIR PARAMOUNT STOCK FOR THE BEST FINANCIAL TERMS NOW AND ARE LESS INTERESTED IN PROMISES THAT COULD BE YEARS AWAY AND SOME OF THOSE TRADERS CONTEND THAT VIACOM'S PROPOSED COMBINATION WITH BLOCKBUSTER WHICH VIACOM PLANS TO ACQUIRE FOR STOCK COULD ACT TO STABILIZE VIACOM'S STOCK BY CREATING A GREATER BASE OF CURRENT REVENUES AND PROFITS Q. V. C. COULD ATTEMPT TO CHALLENGE THE BIDDING PROCEDURES ARGUING THAT VIACOM'S NEW OFFER DOESN'T REQUIRE Q. V. C. TO EXTEND ITS OFFER BY TEN DAYS BECAUSE IT DOESN'T REPRESENT AN INCREASE OVER THE CURRENT MARKET VALUE OF Q. V. C.'S OFFER Q. V. C. SAID LAST WEEK THAT IT WOULDN'T NECESSARILY ABIDE BY AMENDMENTS TO THE BIDDING RULES ANNOUNCED LAST WEEK BY PARAMOUNT IN A RECENT EXCHANGE OF LETTERS WITH Q. V. C. OUTSIDE COUNSEL MARTIN LIPTON PARAMOUNT'S OUTSIDE COUNSEL RICHARD BEATTIE OF SIMPSON THACHER AND BARTLETT DISAGREED WITH AN ASSERTION BY MR. LIPTON THAT ANY NEW BID BY EITHER SIDE HAD TO TOP THE OTHER SIDE'S OFFER IN MARKET VALUE IN ORDER TO TRIGGER THE TEN DAY EXTENSION MR. BEATTIE WROTE THAT SUCH A PROCEDURE WOULD RAISE DIFFICULT VALUATION ISSUES WITH RESPECT TO THE BACK END CONSIDERATION THAT DOES NOT HAVE A READILY ASCERTAINABLE MARKET VALUE AND DEFINITIONAL ISSUES AS TO THE TERM HIGHER INDEED VIACOM'S LATEST BID IS AN EXAMPLE OF HOW TRADERS MIGHT ACTUALLY PREFER A BID WITH A LOWER CURRENT MARKET VALUE TWO DEFENSE CONTRACTORS WILL PAY TWELVE MILLION DOLLARS TO SETTLE CHARGES THAT THEY CHEATED THE PENTAGON ON A CLUSTER BOMB CONTRACT CLINTON ADMINISTRATION OFFICIALS SAID ALLIANT TECHSYSTEMS INCORPORATED EDINA MINNESOTA AND GENCORP INCORPORATED'S AEROJET ORDNANCE DIVISION DOWNEY CALIFORNIA WILL JOINTLY PAY A FOUR MILLION DOLLAR FINE AND WILL TAKE EIGHT MILLION DOLLARS OFF A ONE HUNDRED THIRTY THREE POINT SIX MILLION DOLLAR CLUSTER BOMB CONTRACT UNDER A CONSENT DECREE BEING FILED IN U. S. DISTRICT COURT IN ROCK ISLAND ILLINOIS OFFICIALS OF THE DEFENSE AND JUSTICE DEPARTMENTS SAID FEDERAL OFFICIALS HAD CHARGED THE COMPANIES WITH COLLUDING TO ELIMINATE COMPETITION BETWEEN THEM A MEANS OF KEEPING PRICES HIGH WHEN THE GOVERNMENT DECIDED THAT ONE SUPPLIER WAS ENOUGH DEFENSE OFFICIALS PREVIOUSLY PURCHASED THE WEAPONS FROM BOTH COMPANIES EXECUTIVES OF THE COMPANIES COULDN'T BE REACHED TO COMMENT LAST NIGHT AT A PENTAGON NEWS CONFERENCE SCHEDULED FOR TODAY CLINTON ADMINISTRATION OFFICIALS ARE EXPECTED TO EMPHASIZE HOW CLOSELY DEFENSE AND JUSTICE OFFICIALS WORKED TO SOLVE A PENTAGON PROCUREMENT PROBLEM CONCERNING ANTITRUST ISSUES THERE HAS BEEN CONCERN EXPRESSED BY SENATOR HOWARD METZENBAUM D. OHIO CHAIRMAN OF THE SENATE'S ANTITRUST SUBCOMMITTEE AND OTHERS THAT PENTAGON OFFICIALS MAY FAVOR A MORE LENIENT ANTITRUST ATTITUDE TOWARD DEFENSE SUPPLIERS DURING A PERIOD OF DEFENSE DEPARTMENT CUTBACKS THE TWO AGENCIES ALONG WITH THE FEDERAL TRADE COMMISSION INDUSTRY REPRESENTATIVES AND OUTSIDE ANTITRUST EXPERTS PARTICIPATE IN A DEFENSE DEPARTMENT ANTITRUST TASK FORCE THAT EXAMINES MATTERS REGARDING THE CONSOLIDATING DEFENSE INDUSTRY PENTAGON NEEDS AND ANTITRUST LAWS THIS CASE WHICH THE ARMY REFERRED TO THE JUSTICE DEPARTMENT IS A QUOTE PERFECT EXAMPLE OF JUSTICE AND DEFENSE SEEING EYE TO EYE QUOTE ON ANTITRUST ISSUES SAID ONE GOVERNMENT OFFICIAL WE'RE NOT AT WAR WITH EACH OTHER ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLY AVERAGE BASIS WEDNESDAY JANUARY FIFTH NINETEEN NINETY FOUR ORYX ENERGY COMPANY SAID IT SUSPENDED ITS QUARTERLY DIVIDEND AND SLASHED CAPITAL SPENDING THIS YEAR BY TWENTY PERCENT BECAUSE OF THE PLUNGE IN CRUDE OIL PRICES THE OIL EXPLORATION AND PRODUCTION COMPANY SAID IT WILL CUT SPENDING TO THREE HUNDRED SEVENTY MILLION DOLLARS FROM THE FOUR HUNDRED SIXTY MILLION DOLLARS OF EXPENDITURES LAST YEAR ORYX SAID AT LEAST SEVENTY PERCENT OF THE OUTLAYS WILL BE EARMARKED FOR DEVELOPMENT RATHER THAN EXPLORATION PROJECTS SPENDING MONEY ON THE DEVELOPMENT OF OIL RESERVES BRINGS THE COMPANY MUCH NEEDED CASH MORE SWIFTLY THAN EXPLORATION ORYX HAS LONG TERM DEBT OF AROUND ONE POINT SEVEN SEVEN BILLION DOLLARS AND A HIGH DEBT TO CAPITALIZATION LEVEL OF AROUND SEVENTY PERCENT A SPOKESMAN SAID THE COMPANY DOESN'T HAVE ANY PLANS TO CHANGE ITS DEBT LEVEL THIS YEAR HE SAID IN THE FIRST NINE MONTHS OF NINETEEN NINETY THREE ORYX HAD A NET LOSS OF FORTY EIGHT MILLION DOLLARS OR FIFTY FOUR CENTS A SHARE ON REVENUE OF EIGHT HUNDRED TWENTY FIVE MILLION DOLLARS THE COMPANY HAD BEEN PAYING A QUARTERLY DIVIDEND OF TEN CENTS A SHARE ORYX SAID THE DIVIDEND SUSPENSION WILL SAVE ABOUT FORTY MILLION DOLLARS A YEAR WHICH IT WILL FUNNEL INTO ITS CAPITAL SPENDING PROJECTS ORYX SHARES FELL SIXTY TWO POINT FIVE CENTS TO CLOSE AT SEVENTEEN POINT SIX TWO FIVE DOLLARS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE DESPITE THE REDUCED SPENDING ORYX SAID IT EXPECTS ITS PETROLEUM PRODUCTION WILL RISE THIS YEAR BECAUSE IT BROUGHT SEVERAL NEW FIELDS ON STREAM IN THE PAST TEN MONTHS AND ACQUIRED A LARGER INTEREST IN A NORTH SEA FIELD A SPECIAL PROSECUTOR'S REPORT ALLEGES THAT MEMBERS OF RONALD REAGAN'S CABINET PROTECTED THE PRESIDENT AND THEMSELVES BY WITHHOLDING INFORMATION ON THE IRAN CONTRA AFFAIR AND PORTRAYING THE SCANDAL AS ONLY A ROGUE OPERATION BY WHITE HOUSE AIDES FORMER ATTORNEY GENERAL EDWIN MEESE IS ACCUSED OF LEADING A QUOTE DAMAGE CONTROL QUOTE EFFORT IN LATE NINETEEN EIGHTY SIX WHEN THE CONTROVERSY FIRST BROKE AND DONALD REGAN THEN WHITE HOUSE CHIEF OF STAFF FEARED THE PRESIDENT RISKED IMPEACHMENT AND WHILE FORMER SECRETARY OF STATE GEORGE SHULTZ IS CREDITED WITH RESISTING THE ALLEGED COVERUP HE IS ACCUSED OF MISLEADING CONGRESS ABOUT HIS OWN KNOWLEDGE OF ARMS FOR HOSTAGE DEALS WITH IRAN IN THE MID EIGHTIES PREPARED BY INDEPENDENT COUNSEL LAWRENCE WALSH THE REPORT CAPS A SEVEN YEAR INVESTIGATION OF THE ARMS SHIPMENTS AND DIVERSION OF PROFITS TO ANTI COMMUNIST GUERRILLAS IN NICARAGUA THEREBY CIRCUMVENTING A CONGRESSIONAL BAN ON U. S. AID FOR THE SO CALLED CONTRAS WHILE HIS CRIMINAL PROSECUTIONS FOCUSED ON THOSE WHO WERE MOST INVOLVED IN THE OPERATION MR. WALSH USED HIS FINAL REPORT NOW TO ASSIGN SOME LARGER RESPONSIBILITY TO THOSE HIGHEST IN THE REAGAN ADMINISTRATION MR. WALSH SAID HE FOUND NO CRIMINAL VIOLATIONS BY EITHER PRESIDENT REAGAN OR GEORGE BUSH THEN VICE PRESIDENT STILL HE SAID REGARDLESS OF CRIMINALITY PRESIDENT REAGAN THE SECRETARY OF STATE THE SECRETARY OF DEFENSE AND DIRECTOR OF CENTRAL INTELLIGENCE AND THEIR NECESSARY ASSISTANTS COMMITTED THEMSELVES HOWEVER RELUCTANTLY TO TWO PROGRAMS CONTRARY TO CONGRESSIONAL POLICY AND CONTRARY TO NATIONAL POLICY THEY SKIRTED THE LAW SOME OF THEM BROKE THE LAW AND ALMOST ALL OF THEM TRIED TO COVER UP THE PRESIDENT'S WILLFUL ACTIVITIES TO MAKE HIS CASE THE PROSECUTOR DREW ON A WEALTH OF PREVIOUSLY UNDISCLOSED GRAND JURY TESTIMONY AND CONTEMPORANEOUS NOTES KEPT BY GOVERNMENT AIDES BUT THE REPORT HAS PROVOKED ANGRY DENIALS FROM SCORES OF FORMER OFFICIALS WHOSE WRITTEN RESPONSES FILL AN ACCOMPANYING ONE THOUSAND ONE HUNDRED FIFTY PAGE VOLUME TWICE THE SIZE OF THE ONE SUMMARIZING MR. WALSH'S FINDINGS AT A NEWS CONFERENCE YESTERDAY MR. WALSH WAS MORE RESTRAINED SAYING HE HAD NEVER COME NEAR TO CHARGING EITHER MR. REAGAN OR MR. BUSH FOR THEIR PARTS IN THE IRAN CONTRA AFFAIR AND WHILE BITTER STILL OVER MR. BUSH'S SWEEPING PARDON OF MANY OF THOSE INVOLVED MR. WALSH WAS EVEN KINDLY TOWARD MR. REAGAN HE MAY HAVE BEEN WILLFUL THE FORMER JUDGE SAID BUT HE AT LEAST THOUGHT HE WAS SERVING THE COUNTRY IN WHAT HE DID MR. REAGAN WAS HARSHER YESTERDAY DESCRIBING THE REPORT AS A VEHICLE FOR BASELESS ACCUSATIONS THAT HE MR. WALSH COULD NEVER HAVE PROVEN IN COURT THE FORMER PRESIDENT'S COMMENTS SET THE TONE FOR A DAY OF SHARP ATTACKS ON THE PROSECUTOR INCLUDING AN ANGRY BLAST FROM MR. MEESE WHO LIKENED THE FINDINGS TO QUOTE THE OLD SOVIET MODEL OF JUSTICE YOU'RE GUILTY BECAUSE I SAY YOU'RE GUILTY QUOTE THE CRITICISM OF MR. MEESE CENTERS ON HIS ROLE IN THE FIRST DAYS AFTER THE SCANDAL BROKE IN NINETEEN EIGHTY SIX IN GRAND JURY TESTIMONY MR. REGAN TOLD THE PROSECUTOR THAT IMPEACHMENT WAS A REAL CONCERN IN THE WHITE HOUSE IN THOSE FIRST WEEKS AND MR. WALSH USES THE NOTES AND GRAND JURY TESTIMONY OF FORMER STATE DEPARTMENT AND WHITE HOUSE AIDES CHARLES HILL AND PETER WALLISON TO DESCRIBE DELIBERATIONS OVER WHAT TO SAY ABOUT PRESIDENT REAGAN'S KNOWLEDGE OF AN EARLY SHIPMENT OF ARMS IN NINETEEN EIGHTY FIVE THAT RAISED QUESTIONS OF VIOLATING ARMS EXPORT LAWS MR. MEESE WAS LEADING THE FACT FINDING INQUIRY BUT THE REPORT SUGGESTS HE INSTEAD SIGNALED TO OTHER SENIOR ADVISERS THAT THE OFFICIAL POSITION SHOULD BE TO HIDE THAT THE PRESIDENT KNEW OF THE NINETEEN EIGHTY FIVE SHIPMENT WHEN MR. SHULTZ SAID THE PRESIDENT HAD KNOWN THERE FOLLOWED AN EXCHANGE WITH MR. MEESE IN WHICH MR. HILL APPARENTLY SAW THE ATTORNEY GENERAL AS TRYING TO GET THE SECRETARY TO BACK OFF HILL DESCRIBED MEESE'S STYLE OF QUESTIONING AS LEADING AND SAID MEESE STOOD OVER SHULTZ DURING THE INTERVIEW IN A BACK ON YOUR HEELS' MANNER THE PROSECUTOR'S REPORT READS ELSEWHERE IN THE REPORT MR. HILL'S NOTES HAUNT MR. SHULTZ AS WELL AND SHOW THE STATE DEPARTMENT KEPT ABREAST OF THE IRAN ARMS DEALS EVEN AS OFFICIALS DISPARAGINGLY REFERRED TO THE CHIEF OPERATIVE MARINE LIEUTENANT COLONEL OLIVER NORTH AS POLECAT THOUGH THE SECRETARY DENIES HAVING MISLED CONGRESS THE PROSECUTOR SAYS MR. SHULTZ KNEW SIGNIFICANTLY MORE ABOUT ARMS SHIPMENTS TO IRAN THAN HIS EARLY TESTIMONY REFLECTS SHULTZ'S TESTIMONY WAS INCORRECT IF NOT FALSE IN SIGNIFICANT RESPECTS AND MISLEADING IF LITERALLY TRUE IN OTHERS THE REPORT READS FORMER DEFENSE SECRETARY CASPAR WEINBERGER WHO ESCAPED PROSECUTION UNDER MR. BUSH'S PARDON IS FLATLY DESCRIBED AS HAVING QUOTE LIED QUOTE TO INVESTIGATORS AND THE REPORT ALLEGES THAT TWO WEINBERGER ASSISTANTS RICHARD ARMITAGE AND GENERAL COLIN POWELL WERE LESS THAN FORTHRIGHT IN SOME CASES THE CRITICISM OF GENERAL POWELL WHO ACCUSED THE PROSECUTOR IN TURN OF USING INNUENDO TO IMPUGN HIS CHARACTER IS POLITICALLY SIGNIFICANT SINCE THE FORMER CHAIRMAN OF THE JOINT CHIEFS OF STAFF COULD WELL RETURN TO THE NATIONAL STAGE BUT THE MORE DETAILED AND EXTENSIVE EVIDENCE FOCUSES ON MR. ARMITAGE WHO WAS PART OF AN INFORMAL NETWORK OF INTELLIGENCE AND DEFENSE OFFICIALS TAPPED ON OCCASION BY COLONEL NORTH MR. WALSH'S REPORT MARKS THE END OF HIS DUTIES AS SPECIAL PROSECUTOR AND ITS RELEASE COMES ALMOST PRECISELY TEN YEARS AFTER TWO EVENTS THAT SHAPED IRAN CONTRA ONE WAS THE SECRET MINING OF NICARAGUAN HARBORS BEGUN IN JANUARY NINETEEN EIGHTY FOUR AN OPERATION THAT FRACTURED BIPARTISAN SUPPORT FOR THE CONTRA WAR AND FORCED THE WHITE HOUSE INTO A MONEY CHASE THAT LED TO THE DIVERSION SCHEME THE MINING OPERATION COINCIDED WITH A TOUGHNESS TOWARD IRAN ON TERRORISM AND A POLICY OF DISCOURAGING ARMS SHIPMENTS TO TEHRAN WHICH WAS LINKED SOON AFTER TO THE KIDNAPPING OF THE C. I. A.'S BEIRUT STATION CHIEF IN MARCH NINETEEN EIGHTY FOUR IN TOTAL MR. WALSH ESTIMATES THAT AT LEAST THREE POINT SIX MILLION DOLLARS AND PROBABLY ONE POINT ONE MILLION DOLLARS MORE IN ARMS PROFITS WERE ULTIMATELY DIVERTED INTO THE CONTRA SUPPLY NETWORK RUN FROM THE WHITE HOUSE THE MONEY MOVED THROUGH AN ELABORATE CORPORATE SCHEME BASED IN SWITZERLAND AND THE REPORT DETAILS HOW A NEW YORK BANK OFFICER AND HER HUSBAND AND SON WERE USED TO CIRCUMVENT CURRENCY LAWS SOMETIMES MAKING CASH DROPS AS LARGE AS ONE HUNDRED THOUSAND DOLLARS AT CITY HOTELS SIMILARLY THE REPORT FLESHES OUT THE ROLE OF FORMER AND CURRENT CENTRAL INTELLIGENCE AGENCY OPERATIVES IN SUPPORT OF THE NETWORK AND HOW RIVAL ARMS DEALERS TIED TO THE HONDURAN MILITARY RAN THEIR OWN WEAPONS SUPERMARKET IN THAT COUNTRY MR. WALSH DEVOTES A FULL CHAPTER TO A SENIOR C. I. A. OFFICER IN CENTRAL AMERICA FROM NINETEEN EIGHTY FOUR TO NINETEEN EIGHTY SEVEN WHO HAD CONTACTS WITH THE SUPPLY NETWORK EVEN WHEN THE CONGRESSIONAL BAN WAS IN EFFECT AND THE REPORT DETAILS HOW A FORMER C. I. A. OPERATIVE TURNED MERCENARY LUIS POSADA WAS USED TO DISMANTLE THE AIR OPERATION WHEN IT WAS EXPOSED IN OCTOBER NINETEEN EIGHTY SIX AIRCRAFT WERE FLOWN TO AGUACATE AIR BASE IN HONDURAS WHERE THE MILITARY THERE TOOK POSSESSION AND HOUSING WAS CLEANED OUT AND EQUIPMENT DISPOSED OF IN EL SALVADOR IN HIS INVESTIGATION MR. WALSH UNLIKE ANY INDEPENDENT COUNSEL BEFORE HIM WAS FORCED TO DEAL WITH NATIONAL SECURITY ISSUES THAT MADE PROSECUTION MORE DIFFICULT HIS COSTS ARE ESTIMATED AT NEARLY THIRTY SEVEN MILLION DOLLARS AND THOUGH HE WON CONVICTIONS OR GUILTY PLEAS FROM ELEVEN DEFENDANTS FOUR OF THEM WERE AMONG THOSE SUBSEQUENTLY PARDONED BY MR. BUSH TWO OTHERS INCLUDING MR. NORTH WHO IS NOW RUNNING FOR THE SENATE IN VIRGINIA HAD THEIR VERDICTS OVERTURNED ON APPEAL MR. WALSH DECLINED YESTERDAY TO COMMENT ON MR. NORTH'S CANDIDACY A JURY OF PLAIN ORDINARY PEOPLE RETURNED THEIR VERDICTS OF GUILTY ON THREE FELONY COUNTS AND THE COURT OF APPEALS REVERSED IT HE SAID AND UNDER THE LAW THERE IS NO BARRIER TO HIS PURSUING WHATEVER CAREER HE MAY SEEK CHAMBERS DEVELOPMENT COMPANY NAMED ALEXANDER W. RANGOS AS PRESIDENT AND CHIEF OPERATING OFFICER MR. RANGOS THIRTY THREE YEARS OLD WAS FORMERLY EXECUTIVE VICE PRESIDENT OF OPERATIONS AND CORPORATE DEVELOPMENT OF THIS WASTE MANAGEMENT CONCERN HE SUCCEEDS JOHN G. RANGOS SENIOR AS PRESIDENT THE CHIEF OPERATING OFFICER'S POST IS NEW THE ELDER MR. RANGOS SIXTY FOUR CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE THE COMPANY ALSO SAID JOHN G. RANGOS JUNIOR THIRTY FIVE WAS NAMED VICE CHAIRMAN OF ADMINISTRATION AND TECHNOLOGY A NEW POSITION HE FORMERLY WAS EXECUTIVE VICE PRESIDENT OF ADMINISTRATION AND TECHNOLOGY CHAMBERS ALSO ANNOUNCED SEVERAL OTHER CHANGES IN AN EFFORT TO STREAMLINE MANAGEMENT AND PUT A GREATER EMPHASIS ON SALES AND MARKETING PETER V. MORSE FORTY SIX WAS NAMED SENIOR VICE PRESIDENT OF MARKETING AND DEVELOPMENT A NEW POSITION HE FORMERLY WAS VICE PRESIDENT OF OPERATIONS JACK D. WEERTMAN FORTY TWO WAS TAPPED AS SENIOR VICE PRESIDENT OF OPERATIONS A NEW POSITION HE PREVIOUSLY WAS VICE PRESIDENT OF THE COMPANY'S SOUTHERN REGION AND WILLIAM RODGERS JUNIOR FORTY THREE WAS NAMED A SENIOR VICE PRESIDENT HE CONTINUES AS CHIEF FINANCIAL OFFICER IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE CHAMBERS CLASS A SHARES CLOSED AT FIVE DOLLARS AND TWENTY FIVE CENTS UP TWELVE POINT FIVE CENTS AND ITS CLASS B. SHARES CLOSED AT FIVE DOLLARS DOWN TWELVE POINT FIVE CENTS KEDS THE SNEAKER THAT MADE A COMEBACK WITH BABY BOOMERS IN RECENT YEARS STUMBLED LAST YEAR AND ITS ADVERTISING ACCOUNT HAS BEEN PLACED IN REVIEW KEDS HAD SALES IN NINETEEN NINETY THREE OF THREE HUNDRED SIXTY MILLION DOLLARS DOWN TWO POINT SEVEN PERCENT ACCORDING TO SPORTING GOODS INTELLIGENCE NEWSLETTER IN GLEN MILLS PENNSYLVANIA LAST YEAR'S DECLINE REVERSED A TREND OF INCREASED SALES FOR KEDS IN NINETEEN EIGHTY NINE KEDS HAD SALES OF TWO HUNDRED THIRTY MILLION DOLLARS WHICH INCREASED EACH YEAR TOPPING OFF IN NINETEEN NINETY TWO WITH THREE HUNDRED SEVENTY DOLLARS THE INCUMBENT AGENCY LEONARD MONAHAN LUBARS AND KELLY SAYS IT WAS INVITED TO PARTICIPATE BUT DECLINED THE AGENCY CREATED ADS WITH THE SLOGAN QUOTE KEDS THEY FEEL GOOD THAT FEATURED HOMESPUN IMAGES OF A MAN TRAINING A PUPPY A THIRTYSOMETHING MOTHER BOUNCING AN INFANT ON HER KNEE AND A WOMAN TOSSING A PAIR OF KEDS INTO A WASHING MACHINE THE ACTRESS DEMI MOORE SUPPLIED THE VOICEOVER FOR ALL THE KEDS SPOTS THE EIGHT MILLION DOLLARS KEDS ACCOUNT SWITCH IS ANOTHER BLOW FOR THE PROVIDENCE R. I. AGENCY WHICH IN THE PAST YEAR LOST TWO MAJOR CLIENTS AMERICAN TOURISTER AND SPALDING SPORTS WORLDWIDE WITH COMBINED BILLINGS OF ABOUT TEN MILLION DOLLARS LEONARD MONAHAN HASN'T FULLY REPLACED THE LOST BUSINESS WINNING ONLY ONE NEW ACCOUNT IN A YEAR SYLVANIA LIGHTING PRODUCTS WORTH ONLY AS MUCH AS SIX MILLION DOLLARS IN ADDITION TO THE ACCOUNT DEFECTIONS LEONARD MONAHAN HAS BEEN PLAGUED BY A SPATE OF RECENT EXECUTIVE DEFECTIONS JUST LAST WEEK FRAN KELLY CHIEF OPERATING OFFICER AND DIRECTOR OF CLIENT SERVICES LEFT TO JOIN ARNOLD FORTUNA LAWNER AND CABOT IN BOSTON AS EXECUTIVE VICE PRESIDENT AND CHIEF MARKETING OFFICER IN SEPTEMBER DAVID LUBARS RESIGNED AS EXECUTIVE VICE PRESIDENT TO JOIN OMNICOM GROUP'S B. B. D. O. WORLDWIDE IN LOS ANGELES AND LAST MARCH TOM MONAHAN A FOUNDING PARTNER RESIGNED BUT RETURNED LAST FALL AS ACTING CREATIVE DIRECTOR WE WERE ON A ROLL BUT HIT A STREAK OF BAD LUCK SAYS BRUCE LEONARD THE AGENCY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE HAVEN'T WON ANYTHING NEW RECENTLY BUT WE HAVE A LOT OF POSITIVE ENERGY RIGHT NOW MR. LEONARD SAYS HE HAS NO APOLOGIES FOR THE AGENCY'S WORK OVER THE PAST FIVE AND A HALF YEARS FOR KEDS A UNIT OF STRIDE RITE IN CAMBRIDGE MASSACHUSETTS WE MADE A BUSINESS DECISION THAT WE WOULD RATHER WORK TO REPLACE THE BUSINESS THAN TO PUT OUR CREATIVE AND COLLECTIVE ENERGIES IN TO SAVE IT SAYS MR. LEONARD STRIDE RITE WASN'T THE EASIEST CLIENT MR. LEONARD NOTES THAT IT HAS HAD FOUR CHAIRMEN SINCE THE AGENCY WON THE BUSINESS LAST MONTH ROBERT SIEGEL WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SUCCEEDING ERVIN R. SHAMES WHO IS NOW HEADING UP BORDEN CALLS TO STRIDE RITE WEREN'T RETURNED ACCORDING TO SPORTING GOODS INTELLIGENCE KEDS IS RANKED NUMBER THREE BEHIND NIKE AND REEBOK IN SALES OF U. S. BRAND ATHLETIC FOOTWEAR NUMBER ONE NIKE GREW SEVEN POINT EIGHT PERCENT TO ONE POINT NINE BILLION DOLLARS IN NINETEEN NINETY THREE BUT REEBOK DECLINED TEN POINT FIVE PERCENT TO ONE POINT THREE BILLION DOLLARS SALES FOR THE ENTIRE CATEGORY LAST YEAR GREW THREE POINT THREE PERCENT TO SIX POINT TWO BILLION DOLLARS QUOTE KEDS APPEALS TO THE FEMALE MARKET AND A CUSTOMER WHO IS A LITTLE OLDER QUOTE SAYS JOHN HORAN PUBLISHER OF SPORTING GOODS INTELLIGENCE AND THEY'RE CHEAP KEDS IS FOR A WOMAN WHO WANTS A COMFORTABLE SNEAKER AND LITTLE CACHET HOWEVER MR. HORAN ADDS KEDS TRIPPED UP BECAUSE THEY MILKED THE BASIC BRAND AND HAD NO PRODUCT INNOVATION THERE ARE ONLY SO MANY TIMES YOU CAN GO BACK TO THE WELL ON THE SAME SHOE STRIDE RITE ITSELF IS EXPERIENCING SOME TOUGH FINANCIAL TIMES IT IS EXPECTED TO REPORT EARNINGS OF TWENTY CENTS A SHARE DOWN TWENTY FOUR PERCENT FROM TWENTY SIX CENTS A SHARE A YEAR AGO ACCORDING TO AN ESTIMATE FROM JOSIE ESQUIVEL AN ANALYST WITH LEHMAN BROTHERS IT IS DOUBTFUL THAT GREY ADVERTISING WHICH IS THE AGENCY FOR STRIDE RITE'S CHILDREN'S SHOE DIVISION WILL BENEFIT FROM THE KEDS REVIEW INDUSTRY OFFICIALS SAY STRIDE RITE WANTS TWO AGENCIES TO WORK ON ITS BUSINESS MR. LEONARD SAYS NO TEARS WILL BE SHED FOR THE KEDS LOSS WE'RE OVER IT HE SAYS AND THE AGENCY WILL CONTINUE TO SERVE THE CLIENT UNTIL KEDS SELECTS A NEW AGENCY QUOTE WE CAN POINT TO A LOT OF TERRIFIC WORK QUOTE HE SAYS MR. HORAN SAYS HE DOESN'T BELIEVE THE ADVERTISING IS TO BLAME FOR KEDS' SALES DECLINE HE COMPARES THE KEDS ACCOUNT SWITCH TO REEBOK INTERNATIONAL LIMITED'S FIRING CHIAT SLASH DAY LAST YEAR IT ISN'T THE AD AGENCY'S FAULT THAT SALES ARE OFF HE SAYS THEY'RE JUST THE ONES THAT GET BLAMED ROBERT E. KENNEDY THE FIFTY TWO YEAR OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NORTH AMERICAN OPERATIONS AT SAATCHI AND SAATCHI COMPANY'S SAATCHI AND SAATCHI ADVERTISING IS RETIRING FROM THE AGENCY AFTER JUST A YEAR ON THE JOB ED WAX SAATCHI'S FIFTY SEVEN YEAR OLD WORLDWIDE CHAIRMAN AND CHIEF EXECUTIVE IS ASSUMING MR. KENNEDY'S DUTIES FOR THE FORESEEABLE FUTURE THE AGENCY SAID THE NEWS SURPRISED SAATCHI INSIDERS AND OBSERVERS MR. KENNEDY ROSE THROUGH THE AGENCY'S FINANCIAL RANKS AND WAS CONSIDERED THE COMMERCIAL CONSCIENCE AT THE DEBT LADEN AGENCY EXECUTIVES SAID HE OVERSAW MUCH OF ITS MASSIVE RETRENCHING IN RECENT YEARS BUT MR. KENNEDY DIDN'T HAVE CLOSE TIES WITH ANY OF SAATCHI'S CLIENTS LIMITING HIS POWER BASE INSIDE THE AGENCY EXECUTIVES SAID WE'VE DOWNSIZED RESTRUCTURED AND STREAMLINED THAT'S WHAT I'VE DONE QUOTE MR. KENNEDY SAID NOW IT'S TIME FOR THE PEOPLE WHO WRITE THE ADS AND SELL THEM TO DEVELOP MORE REVENUE IT WAS ALL VERY AMICABLE MR. KENNEDY JOINED THE ADVERTISING BUSINESS AS A MESSENGER AT J. WALTER THOMPSON WHEN HE WAS FIFTEEN BEFORE BEING NAMED NORTH AMERICAN CHAIRMAN MR. KENNEDY HAD BEEN CHIEF FINANCIAL OFFICER AND THEN PRESIDENT AND CHIEF OPERATING OFFICER AT SAATCHI AND SAATCHI WORLDWIDE HIS RETIREMENT IS EFFECTIVE MARCH FIRST FRANK ASSUMMA PRESIDENT OF THE NEW YORK OFFICE OF BACKER SPIELVOGEL BATES WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF U. S. OPERATIONS AND ANDREW CRACKNELL WORLD WIDE EXECUTIVE CREATIVE DIRECTOR AND VICE CHAIRMAN AT THE AGENCY'S U. K. UNIT WAS NAMED TO THE ADDITIONAL POST OF U. S. VICE CHAIRMAN MR. ASSUMMA FORTY YEARS OLD SUCCEEDS MICHAEL BUNGEY AS U. S. CHIEF EXECUTIVE MR. BUNGEY WHO RETAINS THE TITLE OF U. S. CHAIRMAN REMAINS WORLD WIDE CHIEF EXECUTIVE AND HEIR TO AGENCY CHAIRMAN AND CO FOUNDER CARL SPIELVOGEL THE APPOINTMENT OF MR. CRACKNELL FORTY SEVEN WAS EXPECTED SINCE NOVEMBER WHEN HE WAS NAMED CREATIVE HEIR TO AGENCY CO FOUNDER BILL BACKER BURGER KING BOSTON AGENCY HILL HOLLIDAY CONNORS COSMOPULOS SAID IT HAS PULLED OUT OF THE REVIEW FOR BURGER KING'S ESTIMATED ONE HUNDRED MILLION DOLLARS PLUS U. S. ADVERTISING ACCOUNT THE RESOURCES NEEDED TO HELP BURGER KING ARE SO ENORMOUS THAT WE SIMPLY DON'T WANT TO PUT OUR CURRENT CLIENT RELATIONSHIPS IN JEOPARDY THE AGENCY SAID IN A STATEMENT OFFICIALS AT BURGER KING A SUBSIDIARY OF GRAND METROPOLITAN P. L. C. COULDN'T BE REACHED THE DEPARTURE LEAVES FIVE OTHER AGENCIES VYING FOR THE ACCOUNT ACCOUNT PROCTER AND GAMBLE'S DECISION TO FOLD ITS CLARION COSMETICS LINE IS BAD NEWS FOR LEO BURNETT COMPANY CHICAGO WHICH CREATED THE ADVERTISING THE ACCOUNT BILLED NINE MILLION DOLLARS IN THE FIRST TEN MONTHS OF NINETEEN NINETY THREE ACCORDING TO COMPETITIVE MEDIA REPORTING AIRSHIP INTERNATIONAL LIMITED SAID IT TAPPED D'ARCY MASIUS BENTON AND BOWLES NEW YORK TO CREATE ADVERTISING AND SIGN UP NEW ADVERTISERS FOR ITS FLEET OF BLIMPS DAMAGE ESTIMATES ROSE FROM THE CALIFORNIA QUAKE AND THE DEATH TOLL HIT THIRTY FOUR AFTERSHOCKS RUMBLED THROUGH THE LOS ANGELES AREA HAMPERING EFFORTS TO CLEAR RUBBLE FROM MONDAY'S EARTHQUAKE THAT ALSO LEFT MORE THAN TWO THOUSAND SIX HUNDRED INJURED AND TWENTY THOUSAND HOMELESS UP TO ONE HUNDRED TWENTY THOUSAND REMAINED WITHOUT POWER OR WATER AND OFFICIALS CLOSED PORTIONS OF ELEVEN MAJOR HIGHWAYS AS EMERGENCY TEAMS STUDIED THE WEAKENED STATE OF ROADS AND BUILDINGS INSURANCE EXPERTS SHARPLY ESCALATED THEIR DAMAGE ESTIMATES FROM THE ONE BILLION DOLLARS SUGGESTED A DAY BEFORE HOUSING SECRETARY CISNEROS AND TRANSPORTATION SECRETARY PENA FLEW TO THE CITY AND PRESIDENT CLINTON WILL GO THERE TODAY TO INSPECT THE DAMAGE INMAN WITHDREW HIS NAME FROM CONSIDERATION FOR DEFENSE SECRETARY RETIRED ADMIRAL BOBBY INMAN ATTRIBUTED HIS SURPRISE MOVE TO A QUOTE NEW MCCARTHYISM QUOTE IN WASHINGTON SAYING HE WAS QUOTE DISTRESSED AND DISTRACTED QUOTE BY ATTACKS ON HIS CHARACTER AND REPUTATION THE ANNOUNCEMENT BY THE FORMER DEPUTY C. I. A. DIRECTOR COMING JUST ONE WEEK BEFORE HE WAS EXPECTED TO BE CONFIRMED WAS AN EMBARRASSING SETBACK FOR CLINTON THE PRESIDENT ACCEPTED INMAN'S WITHDRAWAL AND BEGAN A NEW SEARCH FOR ASPIN'S SUCCESSOR AMONG PEOPLE LISTED AS POTENTIAL NOMINEES ARE DEPUTY DEFENSE SECRETARY PERRY FORMER NEW HAMPSHIRE SENATOR RUDMAN AND C. I. A. DIRECTOR WOOLSEY A PROSECUTOR ALLEGED THERE WAS A COVERUP IN THE NINETEEN EIGHTIES IRAN CONTRA AFFAIR INDEPENDENT COUNSEL WALSH CONCLUDED THAT MEMBERS OF REAGAN'S CABINET PROTECTED THE PRESIDENT AND THEMSELVES BY WITHHOLDING DATA ON ARMS FOR HOSTAGES DEALS WITH IRAN AND PORTRAYING THE AFFAIR AS A ROGUE OPERATION BY WHITE HOUSE AIDES FORMER ATTORNEY GENERAL MEESE IS ACCUSED OF LEADING A DAMAGE CONTROL EFFORT WHEN THE CONTROVERSY BROKE IN NINETEEN EIGHTY SIX WALSH FOUND NO CRIMINAL VIOLATIONS BY REAGAN OR THEN VICE PRESIDENT BUSH WALSH'S REPORT HAS PROVOKED ANGRY DENIALS FROM SCORES OF FORMER OFFICIALS WHOSE WRITTEN RESPONSES FILL AN ACCOMPANYING ONE THOUSAND ONE HUNDRED FIFTY PAGE VOLUME RUSSIA'S FINANCE MINISTER TURNED DOWN AN OFFER TO REMAIN IN YELTSIN'S CABINET FYODOROV ANNOUNCED HIS RESIGNATION TWO DAYS AFTER REFORM CZAR GAIDAR QUIT SEPARATELY FOREIGN MINISTER KOZYREV SAID RUSSIA NEEDS TO MAINTAIN A MILITARY PRESENCE IN FORMER SOVIET REPUBLICS TO PROTECT RUSSIAN INTERESTS SYRIA'S FOREIGN MINISTER CONDEMNED ISRAEL'S COOL RESPONSE TO THE U. S. SYRIAN SUMMIT AND SAID ISRAELIS HAD NO RIGHT TO HOLD A REFERENDUM CONCERNING THE FUTURE OF THE OCCUPIED GOLAN HEIGHTS MEANWHILE A NUMBER OF ISRAELI POLITICIANS ALSO OBJECTED TO PRIME MINISTER RABIN'S PLANS FOR THE VOTE ON A POSSIBLE LAND FOR PEACE SWAP WITH SYRIA SUNSCREENS PREVENT SUNBURN BUT MAY NOT PROVIDE PROTECTION AGAINST THE POTENTIALLY DEADLY MELANOMA SKIN CANCER RESEARCHERS SAID THAT MICE EXPOSED TO ULTRAVIOLET RAYS DEVELOPED MELANOMA TUMORS DESPITE THE USE OF SUNSCREENS WHICH ARE ACKNOWLEDGED TO BE EFFECTIVE IN PREVENTING NON MELANOMA CANCERS THE SUPREME COURT REJECTED AN ATTEMPT TO LET STATES LIMIT THE BENEFITS PAID TO SOME WELFARE RECIPIENTS BASED ON HOW LONG THEY HAVE BEEN RESIDENTS THE HIGH COURT WITHOUT COMMENT LET STAND RULINGS THAT HAD STRUCK DOWN A MINNESOTA LAW AS A VIOLATION OF NEW RESIDENTS' EQUAL PROTECTION RIGHTS AS WELL AS THEIR RIGHT TO TRAVEL FRANCE WILL REPLACE THE COMMANDER OF U. N. PEACEKEEPING FORCES IN THE FORMER YUGOSLAVIA AT THE REQUEST OF SECRETARY GENERAL BOUTROS GHALI THE FRENCH DEFENSE MINISTRY SAID GENERAL JEAN COT EARLIER THIS MONTH PUBLICLY CRITICIZED THE U. N. CHIEF'S REFUSAL TO PERMIT HIM TO ORDER AIR STRIKES THE U. N. MUST DEPLOY MORE SOLDIERS IN FUTURE INTERVENTIONS PLACE THEM ALL UNDER U. N. CONTROL AND KEEP THE TROOPS IN A COUNTRY EVEN IF SOME GET KILLED THE OUTGOING U. N. COMMANDER IN SOMALIA SAID BECAUSE IT FAILED TO DO THOSE THINGS IN SOMALIA THE U. N. MAY NEVER BE ABLE TO LEAVE THAT COUNTRY WITH A LASTING PEACE CEVIK BIR OF TURKEY SAID REHNQUIST CLEARED THE WAY FOR SHANNON FAULKNER TO BECOME THE FIRST WOMAN TO ATTEND DAY CLASSES WITH CADETS AT THE CITADEL AN ALL MALE MILITARY ACADEMY IN CHARLESTON S. C. THE SUPREME COURT CHIEF JUSTICE SET ASIDE A TEMPORARY STAY HE HAD IMPOSED LAST WEEK BOBBY INMAN WITHDREW HIS NOMINATION TO BE DEFENSE SECRETARY ATTRIBUTING THE SURPRISE MOVE TO HIS DISMAY AT WASHINGTON'S ADVERSARIAL WAYS SPECIFICALLY A QUOTE NEW MCCARTHYISM QUOTE THAT HE CLAIMED WAS AIMED AT HIM BY NEW YORK TIMES COLUMNIST WILLIAM SAFIRE THE EXTRAORDINARY WITHDRAWAL BY THE RETIRED ADMIRAL AND INTELLIGENCE CHIEF JUST ONE WEEK BEFORE HE WAS EXPECTED TO BE CONFIRMED AND TAKE OFFICE IS AN EMBARRASSING SETBACK TO THE CLINTON ADMINISTRATION IN THE WAKE OF MR. INMAN'S UNUSUAL PERFORMANCE AT A NEWS CONFERENCE ANNOUNCING HIS WITHDRAWAL SOME WHITE HOUSE OFFICIALS EXPRESSED RELIEF THAT HE WAS PULLING OUT BUT SENIOR ADMINISTRATION OFFICIALS LAST NIGHT SAID THAT WHILE PRESIDENT CLINTON WAS DISAPPOINTED HE BELIEVED MR. INMAN DESERVED RESPECT FOR HIS THIRTY YEARS OF SERVICE THE PRESIDENT SPECIFICALLY TOLD HIS STAFF NOT TO TAKE SHOTS AT MR. INMAN WHILE MANY OBSERVERS WERE STUNNED BY MR. INMAN'S CHARGES AT THE NEWS CONFERENCE THE WHITE HOUSE WASN'T OVER THE LAST TWELVE DAYS HE HAD TOLD THE WHITE HOUSE OF THOSE CHARGES AS WELL AS DETAILS ABOUT A RUMOR CAMPAIGN AGAINST HIM INCLUDING ATTACKS ON HIS PERSONAL LIFE DEALING WITH THE ACCUSATIONS AIDES SAID TOOK A HEAVY TOLL ON MR. INMAN'S FAMILY AND WAS A MAJOR FACTOR IN HIS WITHDRAWAL IN A TELEPHONE INTERVIEW LAST NIGHT MR. INMAN SAID HE DOESN'T HAVE ANY SKELETONS IN HIS CLOSET AND EXPRESSED FRUSTRATION THAT REPORTERS ASKED ABOUT SUCH MATTERS RATHER THAN FOCUS ON THE MESSAGE HE GAVE AT HIS NEWS CONFERENCE ABOUT THE CORROSIVE EFFECTS OF THE ADVERSARIAL MEDIA A NEW PICK COULD EMERGE SOON BECAUSE THE WHITE HOUSE HAS HAD ALMOST TWO WEEKS TO REOPEN ITS SEARCH FOR A SUCCESSOR TO MR. ASPIN MR. INMAN HAD BEEN CHOSEN FROM A LIST OF ABOUT TWELVE CANDIDATES AND CLINTON AIDES ARE GOING OVER THAT LIST ACCORDING TO A SENIOR ADMINISTRATION OFFICIAL THE WHITE HOUSE HE SAID EXPECTS TO MOVE IN AN ORDERLY AND TIMELY MANNER IT WAS EQUALLY POSSIBLE SAID A SECOND OFFICIAL THAT MR. CLINTON WOULD LOOK BEYOND THE ORIGINAL LIST THE WHITE HOUSE HAS ASKED DEFENSE SECRETARY LES ASPIN WHO HAD PLANNED TO STEP DOWN WITHIN A FEW DAYS TO STAY ON UNTIL A NEW NOMINEE IS FOUND PENTAGON AIDES SAID AND THE POSSIBILITY WAS RAISED LAST NIGHT THAT HE COULD EVEN BE ASKED TO KEEP HIS JOB MR. INMAN SAID IN AN INTERVIEW YESTERDAY THAT HE HAD TOLD A WHITE HOUSE AIDE ON JANUARY SIXTH LESS THAN A MONTH AFTER HE WAS NOMINATED THAT HE INTENDED TO WITHDRAW FROM CONSIDERATION BUT HE DELAYED DELIVERING A FORMAL LETTER OF WITHDRAWAL HE SAID BECAUSE PRESIDENT CLINTON FIRST HAD TO DEAL WITH THE FUNERAL OF HIS MOTHER AND THEN A TRIP TO EUROPE THE PEOPLE MENTIONED MOST FREQUENTLY YESTERDAY AS POTENTIAL NOMINEES ARE DEPUTY DEFENSE SECRETARY WILLIAM PERRY AND FORMER NEW HAMPSHIRE SENATOR WARREN RUDMAN JAMES WOOLSEY THE DIRECTOR OF CENTRAL INTELLIGENCE ALSO HAS BEEN MENTIONED MR. PERRY IS A MILITARY TECHNOLOGIST AND MATHEMATICIAN WHO HAS WON RESPECT FOR HIS MANAGEMENT OF THE PENTAGON OVER THE PAST YEAR BUT WHOM SOME DESCRIBE AS TOO LOW KEY TO LEAD THE DEFENSE ESTABLISHMENT HE COULDN'T BE REACHED TO COMMENT YESTERDAY MR. RUDMAN IS A KOREAN WAR VETERAN WHO SERVED ON THE SENATE DEFENSE APPROPRIATIONS SUBCOMMITTEE HE CURRENTLY IS CO CHAIRMAN OF THE CONCORD COALITION AN ANTIDEFICIT GROUP THAT ESPOUSES MUCH THAT PRESIDENT CLINTON OPPOSES SUCH AS CUTTING FEDERAL BENEFITS FOR THE MIDDLE CLASS MR. RUDMAN A REPUBLICAN HIMSELF DIDN'T DISCLAIM AN INTEREST IN THE PENTAGON JOB HE SAID THE PRESIDENT HASN'T CONTACTED HIM BUT ALSO SAID I'M NOT GOING TO ADVERTISE IN THE PAGES OF THE WALL STREET JOURNAL BUT SENIOR ADMINISTRATION OFFICIALS SAID MESSRS RUDMAN AND WOOLSEY WEREN'T LIKELY TO BE CHOSEN ACCORDING TO ONE AIDE THE PRESIDENT IS SEEKING A STAR FOR THE POST MANY PEOPLE AT THE PENTAGON AND ON CAPITOL HILL WERE TOO STRUCK BY MR. INMAN'S UNUSUAL HOUR LONG NEWS CONFERENCE IN AUSTIN TEXAS TO FOCUS ON WHO MIGHT BE PICKED AS THE NEXT PENTAGON CHIEF WHILE MR. INMAN OBSERVED THAT HE HAS RECEIVED GENERALLY FAVORABLE NEWS COVERAGE HE DWELLED AT LENGTH ON CRITICISMS OF HIM THAT HAVE APPEARED IN THE MEDIA SOME OF THEM SEEMINGLY MINOR SENATOR TRENT LOTT R. MISSISSIPPI CALLED MR. INMAN'S NEWS CONFERENCE WILD AND BIZARRE MR. INMAN SAID HE DECIDED TO WITHDRAW EARLY THIS MONTH AFTER BEING TOLD THAT MR. SAFIRE THE NEW YORK TIMES COLUMNIST WAS CONSPIRING AGAINST HIM WITH SENATE MINORITY LEADER ROBERT DOLE OF KANSAS QUOTE THERE WERE REPORTS WHICH BOTH WILL PROBABLY DENY THAT THERE WAS A TRADE BETWEEN MR. SAFIRE AND SENATOR DOLE THAT IF SENATOR DOLE WOULD TURN UP THE HEAT ON MY NOMINATION THEN SAFIRE WOULD TURN UP THE HEAT ON WHITEWATER DEVELOPMENT QUOTE MR. INMAN ALLEGED REFERRING TO THE ARKANSAS LAND TRANSACTION THAT LATELY HAS PROVED NETTLESOME TO THE CLINTON WHITE HOUSE WHEN ASKED ABOUT MR. INMAN'S CHARGES MR. SAFIRE REACHED AT HIS SUBURBAN WASHINGTON HOME LAST NIGHT SAID READ MY COLUMN ON THURSDAY I'M NOT GOING TO SCOOP MYSELF HE REPEATEDLY DECLINED TO ELABORATE MR. SAFIRE A VETERAN OF THE NIXON ADMINISTRATION IS A GENERALLY CONSERVATIVE COLUMNIST FOR THE NEW YORK TIMES'S GENERALLY LIBERAL OP ED PAGE THE TIMES RELEASED A STATEMENT FROM ITS PUBLISHER ARTHUR SULZBERGER JUNIOR THAT DIDN'T DIRECTLY ADDRESS MR. INMAN'S CHARGE BUT DEFENDED MR. SAFIRE AS A MAN OF GREAT DECENCY HONOR AND INTEGRITY THE STATEMENT ALSO QUOTED A TIMES SPOKESWOMAN NANCY NIELSEN AS SAYING THAT MR. SAFIRE'S OPINIONS ARE HIS OWN BUT THAT AS AN EMPLOYEE OF THE TIMES HE IS EXPECTED TO WORK WITHIN THE STANDARDS OF THE TIMES AND WE ARE CONFIDENT HE HAS DONE SO AN ANGRY SENATOR DOLE WAS LESS RESTRAINED SAYING OF MR. INMAN THAT HE'S PROBABLY NOT QUALIFIED TO BE SECRETARY OF DEFENSE IF HE HAS FANTASIES LIKE THAT THE BAD BLOOD BETWEEN MR. INMAN AND MR. SAFIRE DATES BACK AT LEAST TO NINETEEN EIGHTY ONE WHEN MR. INMAN WAS DEPUTY DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY MR. SAFIRE WAS CLOSE TO WILLIAM CASEY THE C. I. A. DIRECTOR AND MANAGED MR. CASEY'S UNSUCCESSFUL CAMPAIGN FOR CONGRESS IN NINETEEN SIXTY SIX MR. INMAN IN HIS NEWS CONFERENCE YESTERDAY RELATED THE STORY OF HOW AFTER THE ISRAELIS BOMBED A NEARLY OPERATIONAL NUCLEAR REACTOR IN IRAQ HE CURTAILED ISRAELI ACCESS TO PHOTOGRAPHS TAKEN BY U. S. RECONNAISANCE SATELLITES THE DECISION OUTRAGED THE ISRAELIS QUOTE CASEY HAD BEEN ON A TRIP DOWN TO AUSTRALIA AND NEW ZEALAND QUOTE MR. INMAN SAID YESTERDAY WHEN HE CAME BACK HIS FAVORITE JOURNALIST AND FORMER CAMPAIGN MANAGER MR. SAFIRE COMPLAINED TO HIM ABOUT THE DECISION MR. INMAN WAS PARTICULARLY PAINED BY A COLUMN BY MR. SAFIRE LAST DECEMBER TWENTY THIRD THAT LABELED MR. INMAN CLINTON'S WORST CABINET NOMINATION AND ACCUSED THE NOMINEE OF BEING MANIPULATIVE AND DECEPTIVE MR. SAFIRE ALSO WROTE THAT WHILE AT THE C. I. A. MR. INMAN BECAME CONVINCED THAT BILL CASEY AND I WERE CONSPIRING TO BLOCK HIS ADVANCEMENT IN THAT COLUMN MR. SAFIRE ALSO CRITICIZED MR. INMAN'S FAILURE TO PAY TAXES FOR EMPLOYING A PART TIME HOUSEKEEPER CALLING HIM A CHEAT MR. INMAN SAID ON DECEMBER TWENTIETH THAT HE HAD SENT A SIX THOUSAND DOLLAR CHECK TO THE INTERNAL REVENUE SERVICE TO COVER THE BACK TAXES I WAS FRANKLY VERY SURPRISED AT THE DEPTH OF ANIMOSITY IN THAT INITIAL COLUMN MR. INMAN SAID IN A TELEPHONE INTERVIEW YESTERDAY DISPLAYING SOME ANIMUS OF HIS OWN HE REPEATED AN ACCUSATION HE MADE AT THE NEWS CONFERENCE THAT MR. SAFIRE IS QUOTE A MAN WHO HAS HIDDEN HIS OWN PLAGIARISM BY AN OUT OF COURT SETTLEMENT WITH SEALED DOCUMENTS QUOTE MR. INMAN DIDN'T ELABORATE ON HIS ACCUSATION AND THE NEW YORK TIMES STATEMENT DIDN'T ADDRESS THE ISSUE WASHINGTON WAS INUNDATED WITH RUMORS YESTERDAY THAT MR. INMAN WAS WITHDRAWING OUT OF FEAR THAT OLD ENEMIES PERHAPS COVERT OPERATORS AT THE C. I. A. WOULD ATTACK HIM WITH DEROGATORY INFORMATION PERHAPS FUNNELING IT TO MR. SAFIRE BUT MR. INMAN DISMISSED THAT THOUGHT SAYING I DON'T KNOW THAT ANYBODY THERE AT THE AGENCY STILL HAS IT IN FOR ME MR. INMAN ALSO REJECTED SUGGESTIONS THAT OLD ADVERSARIES IN ISRAEL HAD UNDERMINED HIM NOTING THAT HE HAD LONG SHARED INTELLIGENCE DATA WITH THE ISRAELI GOVERNMENT HE SAID I HAVE ALWAYS HAD EXCELLENT RELATIONSHIPS WITH THE LABOR SIDE OF ISRAEL WHICH IS CURRENTLY IN POWER RATHER HE SAID HE THOUGHT MR. SAFIRE WAS OPERATING ON HIS OWN ASKED WHY HE WOULD LET A SOLE NEWSPAPER COLUMNIST KNOCK HIM OUT OF THE BOX MR. INMAN SAID IF I'D WANTED TO STAY IN THE BOX I WOULD HAVE STAYED IN THE CURRENT CLIMATE YOU'VE GOT TO WANT ONE OF THOSE JOBS AWFULLY BADLY HE SAID IN THE INTERVIEW HE SAID THAT HE DIDN'T I LOOKED AT THIS PROSPECT AS BEING ONE WHERE IT WAS CONSTANTLY NEGATIVE EVERY DAY AND DECIDED THAT'S NOT HOW I WANT TO SPEND THE NEXT YEARS OF MY LIFE HE SAID AT HIS NEWS CONFERENCE IN ADDITION MR. INMAN MAY HAVE LEARNED FROM HIS PRECONFIRMATION BRIEFINGS THAT ONE OF THE BIGGEST PROBLEMS HE WOULD HAVE FACED AS DEFENSE SECRETARY WOULD BE WRESTLING WITH A DEFENSE ESTABLISHMENT THAT ISN'T SHRINKING AS FAST AS THE DEFENSE BUDGET HE BEGAN HIS NEWS CONFERENCE BY DENYING THAT HE HAD ANY DIFFERENCES WITH PRESIDENT CLINTON ON DEFENSE POLICY BUT HE CONCLUDED THE SESSION BY TOSSING SOMETHING OF A FAREWELL HAND GRENADE TO MR. CLINTON SAYING THAT QUOTE TWO YEARS FROM NOW THE PRESIDENT'S GOING TO FIND HIMSELF IN A TERRIBLE CRUNCH OF EITHER FINDING MORE MONEY OR REDUCING FORCE LEVELS QUOTE THAT IS EXACTLY THE CRITICISM THAT MANY OF THE ADMINISTRATION'S CRITICS HAVE LEVELED AT THE PLANNED DEFENSE BUDGETS AND AT MR. ASPIN'S BOTTOM UP REVIEW OF THE U. S. DEFENSE FORCE STRUCTURE I'VE READ LARGE VOLUMES NOW OF ISSUE PAPERS ON NATIONAL SECURITY HE SAID I'VE NOT WHIPPED UP A GREAT APPETITE FOR THOSE ISSUES JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE A CHICAGO INVESTMENT ADVISORY FIRM AGREED TO PAY A TWENTY FIVE THOUSAND DOLLAR PENALTY TO SETTLE ALLEGATIONS THAT THE FIRM VIOLATED ANTIFRAUD STATUTES IN THE HANDLING OF EIGHT MILLION DOLLARS IN CUSTOMER ASSETS THE FIRM GOFEN AND GLOSSBERG INCORPORATED NEITHER ADMITTED NOR DENIED THE VIOLATIONS ALLEGED BY THE SECURITIES AND EXCHANGE COMMISSION IN AN ADMINISTRATIVE ACTION THE FIRM FOUNDED IN NINETEEN THIRTY TWO HAS ABOUT TWO BILLION DOLLARS UNDER MANAGEMENT QUOTE THIS CASE IS SIGNIFICANT BECAUSE MORE AND MORE PEOPLE MAY BE USING INVESTMENT ADVISERS QUOTE SAID JOY BODDIE SPECIAL COUNSEL FOR THE S. E. C. IN CHICAGO THE S. E. C. CHARGES RELATE TO THE CUSTOMER ASSETS THAT GOFEN AND GLOSSBERG HELD UNDER ITS CONTROL AS TRUSTEE BETWEEN NINETEEN EIGHTY THREE AND NINETEEN NINETY ONE THE AGENCY ALLEGED THAT THE FIRM FAILED TO DISCLOSE THE CUSTODY OF THE CUSTOMER ASSETS IN ITS FILINGS WITH THE S. E. C. FAILED TO FILE AN AUDITED BALANCE SHEET FOR THE CUSTOMER ASSETS AND FAILED TO HIRE AN INDEPENDENT ACCOUNTANT TO CONDUCT A SURPRISE ANNUAL EXAMINATION OF THE ACCOUNTS THE FIRM AGREED TO BE CENSURED BY THE S. E. C. AND SAID IT WILL HIRE A CONSULTANT TO MONITOR ITS COMPLIANCE WITH S. E. C. RULES FOR FIVE YEARS THE FIRM'S LAWYER PAUL UHLENHOP OF CHICAGO DECLINED TO COMMENT ON THE S. E. C. ACTION AND A SPOKESMAN FOR THE FIRM COULDN'T BE REACHED IMMEDIATELY FOR COMMENT THE U. S. GOVERNMENT HAS BEGUN INITIATIVES DUBBED QUOTE SHOWCASE GERMANY QUOTE IN A DRIVE TO INTEGRATE FOREIGN AND COMMERCIAL POLICY MORE CLOSELY TO SUPPORT U. S. BUSINESS ABROAD AND SPUR JOB CREATION THE PROGRAM IN GERMANY TO COORDINATE DIVERSE GOVERNMENT RESOURCES TO SERVE U. S. BUSINESS INTERESTS AND EXPORTS COULD BECOME A GLOBAL PROTOTYPE FOR U. S. MISSIONS SAID U. S. OFFICIALS IN FRANKFURT TO OPEN A BUSINESS INFORMATION CENTER THE SHOWCASE EFFORT AIMS TO BREAK DOWN TRADITIONAL BUREAUCRATIC BARRIERS BETWEEN CONSULAR COMMERCIAL AND INFORMATION OFFICERS TO OFFER MORE DIRECT SERVICES TO BUSINESSES FOR EXAMPLE CONSULAR STAFF HAVE INSTRUCTIONS TO SPEED HANDLING OF PASSPORTS FOR U. S. BUSINESS PEOPLE AND U. S. VISAS FOR GERMAN BUSINESS PEOPLE THE PROGRAM ALSO ENVISIONS A STRATEGIC APPROACH TO TARGET GERMAN COMPANIES THAT ARE POTENTIAL BUYERS OF U. S. GOODS AND TO HELP U. S. EXHIBITORS AT TRADE FAIRS IN A CLAIM FOR AN INJURY BLAMED ON REPETITIVE MOTION A BRITISH WOMAN WAS AWARDED ONE HUNDRED EIGHTEEN THOUSAND DOLLARS HER UNION SAID TERMING THE INLAND REVENUE SETTLEMENT THE LARGEST YET IN THE COUNTRY THE FORTY SEVEN YEAR OLD PLAINTIFF WAS A TYPIST AT BRITAIN'S TAX AGENCY AND DEVELOPED ARM PAINS IN NINETEEN NINETY SHE RETIRED LAST JULY AND IS REGISTERED AS DISABLED JUST THREE MONTHS AGO BRITAIN'S HIGH COURT REJECTED ANOTHER INJURY CLAIM LINKED TO REPETITIVE STRAIN RULING THE TERM MEDICALLY MEANINGLESS LAST YEAR SEVERAL SETTLEMENTS WERE PAID IN BRITAIN TO KEYBOARD USERS CLAIMING REPETITIVE STRESS INJURIES INCLUDING SIXTY SEVEN THOUSAND THREE HUNDRED DOLLARS TO A BANK SECRETARY EASTERN GERMAN INSURANCE WORKERS AGREED TO A CONTRACT THAT WILL RAISE THEIR WAGES TO EIGHTY SEVEN POINT FIVE PERCENT OF THEIR WESTERN COUNTERPARTS' PAY BY SEPTEMBER FIRST HBV UNION AND INDUSTRY OFFICIALS SAID THE ACCORD ALSO PROVIDES OLDER AND LONG TERM EMPLOYEES PROTECTION AGAINST BEING FIRED INSURERS SAID THE DEAL IS MORE GENEROUS THAN INDUSTRY PACTS IN THE WESTERN REGION BECAUSE EASTERN WORKERS FACE MORE SERIOUS ECONOMIC PROBLEMS SUCH AS HIGHER INFLATION AS REUNIFICATION EFFORTS CONTINUE WEST AFRICAN FOOD SUPPLIES ARE BEING THREATENED BY SWARMS OF LOCUSTS THAT CAN DEVOUR ONE HUNDRED TONS OF VEGETATION A DAY UNITED NATIONS OFFICIALS SAID SENEGAL MAURITANIA AND SOUTHERN MOROCCO HAVE BEEN HIT HARDEST THE DAMAGE FROM THE DESERT LOCUSTS ISN'T EXPECTED TO MATCH THAT OF A NINETEEN EIGHTY EIGHT INVASION THAT DEVASTATED CROPS IN PARTS OF NORTHERN AFRICA BUT OFFICIALS OF THE WEST AFRICAN COUNTRIES DONOR NATIONS AND INTERNATIONAL INSTITUTIONS MEETING IN ROME WORRIED THAT THE LOCUSTS COULD PUSH NORTH TO ALGERIA AND SOUTH TO GAMBIA GUINEA BISSAU AND GUINEA SEVERAL AFRICAN NATIONS HAVE APPLIED SPRAYS TO PREVENT SWARMS FROM BREEDING AND ADVANCING MEXICO COLOMBIA AND VENEZUELA POSTPONED TOMORROW'S SIGNING OF A BROAD FREE TRADE AGREEMENT AS MEXICAN AUTHORITIES SOUGHT TO RESOLVE A REBEL UPRISING THE ACCORD WHICH MEXICO PURSUED TO DIVERSIFY ITS TRADE FURTHER BEYOND NORTH AMERICA COVERS FARM GOODS DISPUTE RESOLUTION ILLEGAL PRACTICES SAFEGUARDS INVESTMENT AND INTELLECTUAL PROPERTY RIGHTS SINCE MEXICO SIGNED A PACT WITH CHILE IN NINETEEN NINETY ONE BILATERAL TRADE MUSHROOMED SIXTY PERCENT SEPARATELY FOREIGN INVESTMENT IN CHILE LAST YEAR SOARED FIFTY THREE PERCENT TO TWO POINT SIX EIGHT BILLION DOLLARS FROM A YEAR EARLIER MAINLY IN INDUSTRIES AND MINING FORTY THREE PERCENT OF THE TOTAL CAME FROM U. S. INVESTORS THE BRITISH RETAIL CONSORTIUM SAID SHOPKEEPERS HAD THREE BILLION DOLLARS IN LOSSES LAST YEAR FROM SHOPLIFTING AND BURGLARIES CRIME SLASHED THE SMALL RETAILERS' EARNINGS ALMOST TWENTY FIVE PERCENT THE ORGANIZATION SAID NOTING THE SITUATION PROMPTED MANY STORES TO GO OUT OF BUSINESS A STUDY OF FIFTY FOUR THOUSAND STORES IN THE U. K. FOUND THAT HALF HAD BEEN VANDALIZED AND THE COST OF SECURITY EQUIPMENT TO DETER OR COMBAT CRIME SOARED POLICE RECORDED MORE THAN ONE MILLION ARRESTS INVOLVING SMALL SHOPS LAST YEAR CORPORATE BANKRUPTCIES IN JAPAN EASED ZERO POINT NINE PERCENT TO FOURTEEN THOUSAND FORTY ONE IN NINETEEN NINETY THREE MARKING THE FIRST DECLINE IN THREE YEARS BUT A RECORD SIXTY ONE PERCENT OF THE FAILURES WERE CAUSED BY RECESSION A CREDIT RESEARCH ORGANIZATION SAID OF THE TOTAL EIGHT THOUSAND FIVE HUNDRED THIRTY FOUR CASES RESULTED FROM POOR SALES SLUMPING EXPORTS OR OTHER CAUSES LINKED TO JAPAN'S THREE YEAR OLD RECESSION TEIKOKU DATA BANK LIMITED SAID THE PREVIOUS RECORD LEVEL OF RECESSION LINKED INSOLVENCIES WAS FIFTY NINE PERCENT IN NINETEEN EIGHTY THREE LAST YEAR THEY NUMBERED SIX THOUSAND EIGHT HUNDRED THIRTY THREE OR FORTY EIGHT PERCENT OF THE TOTAL MEANWHILE THE NUMBER OF BANKRUPTCIES CAUSED BY FALLING PRICES OF LAND STOCKS AND DSECURITIES LAST YEAR FELL THIRTY PERCENT TO NINE HUNDRED EIGHTY NINE COMPANIES THAT FAILED LAST YEAR HAD TOTAL LIABILITIES OF SIXTY POINT FIVE ONE BILLION DOLLARS AN ELEVEN PERCENT DROP FROM A YEAR EARLIER BRITAIN'S ROYAL MINT WILL ISSUE A FIFTY PENCE COIN TO COMMEMORATE ALLIED FORCES' D. DAY LANDING IN FRANCE ON JUNE SIXTH NINETEEN FORTY FOUR DURING WORLD WAR TWO A SILVER VERSION OF THE COIN WILL BE PRICED AT THIRTY FIVE DOLLARS AND EIGHTY CENTS AND A GOLD ONE AT FIVE HUNDRED SIXTY DOLLARS SINCE PUBLIC SECTOR DOCTORS IN BANGLADESH BEGAN A NATIONWIDE STRIKE A WEEK AGO OVER PAY AND HEALTH CARE SPENDING HOSPITAL SOURCES SAID MORE THAN ONE HUNDRED PATIENTS HAVE DIED FOR LACK OF TREATMENT MOODY'S INVESTORS SERVICE INCORPORATED UPGRADED FIVE HUNDRED MILLION DOLLARS OF SENIOR DEBT TO SINGLE A THREE FROM B. A A ONE SAYING IT EXPECTS THAT C. B. S. CASH FLOW WILL CONTINUE TO BENEFIT FROM THE COMPANY'S POSITION AS THE LEADING TELEVISION NETWORK AN IMPROVING ADVERTISING MARKET AND REDUCED DEBT SERVICE REQUIREMENTS AFTER A DEBT TO EQUITY CONVERSION EARLIER THIS YEAR MOODY'S SAID ITS RATING QUOTE CONTINUES TO RECOGNIZE QUOTE THE INHERENT VOLATILITY OF THE C. B. S. TELEVISION NETWORK AND SOME UNCERTAINTIES ABOUT FUTURE FINANCIAL STRATEGIES RIGGS NATIONAL CORPORATION WASHINGTON D. C. STANDARD AND POOR'S CORPORATION ASSIGNED A SINGLE B. RATING TO THIS BANK HOLDING COMPANY'S NEW ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF SUBORDINATED DEBT IT ALSO RAISED ITS RATINGS ON AN ADDITIONAL TWO HUNDRED MILLION DOLLARS OF DEBT INCLUDING AN UPGRADE OF EXISTING SUBORDINATED DEBT TO SINGLE B. FROM TRIPLE C. PLUS THE RATINGS AGENCY CITED THE COMPANY'S SUCCESS IN REDUCING NONPERFORMING ASSETS RIGGS NATIONAL'S MAIN HOLDING IS RIGGS NATIONAL BANK WASHINGTON D. C. THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR ROSE TO ONE HUNDRED ELEVEN POINT ONE FOUR IN THE LATEST WEEK FROM ONE HUNDRED ELEVEN POINT OH EIGHT THE PRIOR WEEK BUT THE ANNUAL GROWTH RATE OF THE INDEX CONTINUED ITS SHARP DECLINE FALLING TO TWO POINT FIVE EIGHT PERCENT FROM TWO POINT SEVEN SEVEN PERCENT A WEEK EARLIER THE YEAR OVER YEAR DECLINE SUGGESTS TEXAS' ECONOMIC GROWTH RATE IS FALLING SLIGHTLY IN THE LATEST WEEK TEXAS REFINERY OUTPUT ROSE SLIGHTLY CAPPUCINO COWBOYS A DRIVE THROUGH ESPRESSO BAR IN RURAL JOHNSON COUNTY IS DOING A BOOMING BUSINESS SERVING RANCHERS NERVOUS SURGEONS A HOUSTON GROUP RECEIVED F. D. A. APPROVAL FOR AN ELECTRONIC DEVICE TO WARN DOCTORS IF THEIR SURGICAL GLOVES TEAR BOONE PICKENS EVEN THOUGH HIS MESA INCORPORATED AGREED TO PAY UNOCAL FORTY TWO POINT EIGHT MILLION DOLLARS TO SETTLE A SECURITIES LAWSUIT IT WAS LESS THAN ANALYSTS HAD FEARED AND MESA'S STOCK JUMPED AUSTIN MAYOR BRUCE TODD BLAMED QUOTE ELEMENTARY QUOTE ACCOUNTING ERRORS FOR A FINANCIAL CRISIS AT CITY OWNED BRACKENRIDGE HOSPITAL HEMISFAIR ARENA SAN ANTONIO OFFICIALS SAY THE AGING LANDMARK MUST BE DEMOLISHED TO MAKE WAY FOR EXPANDED CONVENTION FACILITIES HISPANIC ACTIVISTS SOUTHWESTERN BELL HALTED CONTRIBUTIONS TO THE MEXICAN AMERICAN LEGAL DEFENSE AND EDUCATIONAL FUND AFTER THE GROUP HIRED A PROMINENT CRITIC OF SOUTHWESTERN BELL GARY E. FRASHIER FIFTY SEVEN YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE CHAIRMAN OF THIS BIOPHARMACEUTICAL COMPANY MR. FRASHIER FORMERLY PRESIDENT CONTINUES AS CHIEF EXECUTIVE OFFICER STEVEN M. PELTZMAN FORTY SEVEN CHIEF OPERATING OFFICER SUCCEEDS MR. FRASHIER AS PRESIDENT VIACOM INCREASED ITS BID FOR PARAMOUNT TO ABOUT NINE POINT SEVEN BILLION DOLLARS ALTHOUGH THE CURRENT MARKET VALUE STILL FALLS SHORT OF THE TEN POINT ONE BILLION DOLLAR OFFER BY RIVAL Q. V. C. NETWORK MANY TRADERS SAID THEY PREFER VIACOM'S BID BECAUSE IT CONTAINS A NEW PROVISION TO PROTECT SHAREHOLDERS AGAINST A DOWNTURN IN THE PRICE OF VIACOM'S STOCK A MAJOR COMPONENT OF ITS CASH AND STOCK BID PRUDENTIAL SECURITIES AGREED TO BE TEMPORARILY SUSPENDED FROM OPENING NEW BROKERAGE ACCOUNTS IN TEXAS AND TO PAY ONE POINT FIVE MILLION DOLLARS IN A SETTLEMENT WITH STATE REGULATORS AFTER AN INVESTIGATION OF THE FIRM'S PARTNERSHIP PRACTICES CHRYSLER'S FOURTH QUARTER PROFIT MORE THAN DOUBLED TO ITS HIGHEST LEVEL FOR THAT PERIOD SURPASSING ESTIMATES AND SENDING ITS STOCK TO A RECORD G. M. AND FORD SHARES ALSO JUMPED AS RISING U. S. VEHICLE SALES AND HIGHER PRICES PROMISE SOLID EARNINGS IN DETROIT CITIBANK CHEMICAL AND SEVERAL OTHER OF THE LARGEST U. S. BANKS REPORTED SHARPLY HIGHER FOURTH QUARTER EARNINGS INVESTORS TOOK PROFITS SENDING SOME BANKING STOCKS DOWNWARD ELI LILLY PLANS A ONE POINT TWO BILLION DOLLAR PRETAX FOURTH QUARTER CHARGE MOSTLY TO STREAMLINE FOREIGN OPERATIONS AND FUND EARLY RETIREMENT OF TWO THOUSAND SIX HUNDRED WORKERS THE PHARMACEUTICAL COMPANY ALSO OUTLINED ITS PROPOSAL TO SELL OR SPIN OFF ITS ENTIRE MEDICAL DEVICE BUSINESS BROWNING FERRIS'S FORMER GENERAL COUNSEL WAS ACCUSED BY THE S. E. C. OF INSIDER TRADING FOR SELLING SHARES IN THE GARBAGE DISPOSAL FIRM BEFORE IT MADE A DISAPPOINTING EARNINGS PROJECTION NORTHWEST AIRLINES FILED FOR AN INITIAL PUBLIC OFFERING OF TWENTY THREE MILLION COMMON SHARES AT A PRICE OF AS MUCH AS TWENTY DOLLARS APIECE OR A TOTAL OF FOUR HUNDRED SIXTY MILLION DOLLARS C. B. S. IS EXPECTED TO BE AWARDED THE T. V. RIGHTS TO THE NINETEEN NINETY EIGHT WINTER OLYMPICS IN JAPAN FOR AN ESTIMATED THREE HUNDRED SEVENTY FIVE MILLION DOLLARS THE EXPECTED WIN FOLLOWS C. B. S.'S LOSS LAST MONTH OF THE RIGHTS TO A PACKAGE OF N. F. L. GAMES IT HAD HELD FOR THIRTY EIGHT YEARS TREASURY SECRETARY BENTSEN LAUNCHED AN EFFORT TO WIN FULL BUSINESS RIGHTS FOR U. S. FINANCIAL SERVICE FIRMS IN EMERGING ECONOMIES HE ALSO HINTED AGAIN THAT THE U. S. MAY BE CLOSE TO LIFTING ITS TRADE EMBARGO ON VIETNAM JAPAN'S BIG FOUR BROKERAGE FIRMS RECEIVED RATINGS DOWNGRADES FROM S. AND P. ALTHOUGH THEIR PROFITS AND STOCK PRICES ARE RISING THE FIRMS ARE STILL CRIMPED BY HIGH COSTS AND VULNERABLE TO A MARKET DOWNTURN ANALYSTS SAY WARNACO AGREED TO BUY THE UNDERWEAR UNIT OF CALVIN KLEIN AND THE RIGHTS TO OTHER MERCHANDISE UNDER THE DESIGNER'S NAME FOR SIXTY FOUR MILLION DOLLARS PROCTER AND GAMBLE PLANS TO DISCONTINUE ITS CLARION COSMETICS BRAND THE LATEST IN A SERIES OF PRODUCTS P. AND G. HAS ELIMINATED IN ITS EFFORT TO SLASH COSTS AEROFLOT SIGNED A PRELIMINARY PACT TO LEASE FOUR BOEING SEVEN SIXTY SEVENS FROM G. P. A. GROUP FOR ITS TRANS ATLANTIC ROUTES THE DEAL REPRESENTS A VITAL TOEHOLD IN RUSSIA FOR BOTH G. P. A. AND BOEING BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED NINETY FIVE POINT FIVE FOUR UP EIGHTEEN POINT NINE SIX COMMODITIES OIL FOURTEEN DOLLARS AND EIGHTY SEVEN CENTS A BARREL OFF TWENTY THREE CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY TWO POINT ONE EIGHT UP ZERO POINT ZERO FOUR SPOT INDEX ONE HUNDRED THIRTY POINT TWO SIX OFF ZERO POINT ONE FIVE DOLLAR ONE HUNDRED TEN POINT SEVEN FIVE YEN OFF ZERO POINT THREE ONE ONE POINT SEVEN FOUR SIX FIVE MARKS OFF ZERO POINT ZERO ZERO EIGHT EIGHT IN THE HEYDAY OF THE TEXAS OIL BOOM IN THE LATE SEVENTIES A BRUNETTE KNOWN AS QUOTE THE WESTERN COMPANY GIRL QUOTE APPEARED ON TELEVISION SPOTS AND CAPTURED THE MOOD OF THE INDUSTRY WITH THIS SNAPPY ONE LINER QUOTE IF YOU DON'T HAVE AN OIL WELL GET ONE QUOTE A BANKRUPTCY LAW FILING AND SEVERAL DEBT RESTRUCTURINGS LATER WESTERN COMPANY OF NORTH AMERICA NOW ESCHEWS SUCH FLASHY PROMOTION STICKING TO MORE ECONOMICAL ADVERTISING IN TRADE JOURNALS THE COMPANY FOUNDED BY ENTREPRENEUR EDDIE CHILES NOW EMBODIES A NEW OIL INDUSTRY ETHIC OF A LEAN NIMBLE COMPANY PREPARED TO ADAPT QUICKLY TO DIPS IN ENERGY PRICES AN IMPORTANT SKILL NOW THAT CRUDE OIL PRICES ARE HITTING FIVE YEAR LOWS MANY ENERGY RELATED COMPANIES HAVE SLASHED DEBT AND STREAMLINED OPERATIONS BUT WESTERN IS ONE OF THE INDUSTRY'S BIGGEST TURNAROUND STORIES IN A PROCESS THAT BEGAN SEVEN YEARS AGO AND IS CONTINUING WESTERN CUT COSTS PARED DEBT AND SOLD OFF DRILLING RIGS TO CONCENTRATE ON ITS MORE PROFITABLE OIL WELL SERVICES BUSINESS AMID A GENERALLY GLOOMY OUTLOOK FOR ENERGY COMPANIES WESTERN IS NOW A BRIGHT SPOT COMPARED TO ITS PEERS WESTERN HAS GONE FROM BEING ONE OF THE MOST LEVERAGED TO ONE OF THE LEAST LEVERAGED IN A PERIOD OF ABOUT A YEAR SAYS JAMES CARROLL AN OIL SERVICE ANALYST AT PAINEWEBBER INCORPORATED CONSIDERING THAT SOME INVESTORS WERE CONCERNED ABOUT THE COMPANY'S SURVIVABILITY IN MID NINETEEN NINETY TWO WESTERN MADE A PRETTY SIGNIFICANT SWING WESTERN'S STOCK MORE THAN DOUBLED DURING NINETEEN NINETY THREE STARTING THE YEAR AT FIVE DOLLARS AND SEVENTY FIVE CENTS A SHARE AND ENDING IT AT TWELVE POINT EIGHT SEVEN FIVE DOLLARS ACCORDING TO WILSHIRE ASSOCIATES INCORPORATED A SANTA MONICA CALIFORNIA FINANCIAL CONSULTING FIRM WESTERN WAS THE YEAR'S THIRD BIGGEST GAINER AMONG TEXAS ENERGY STOCKS AFTER ENERGY SERVICE COMPANY OF DALLAS AND TEJAS GAS CORPORATION OF HOUSTON IN FACT THE TURNAROUND HAS COME SO FAR THAT WESTERN'S NEW MANAGEMENT CLAIMS TO BE UNFAZED BY THE RECENT DROP IN OIL PRICES SHELDON ERIKSON HIRED IN NINETEEN EIGHTY SEVEN AS CHIEF EXECUTIVE OFFICER TO REVERSE THE COMPANY'S FORTUNES HAS FIVE PROFITABLE QUARTERS UNDER HIS BELT HE VOWS THE COMPANY WILL BE IN THE BLACK FOR NINETEEN NINETY FOUR WESTERN HAS THE ADVANTAGE OF BEING TIED CLOSELY TO NATURAL GAS PRICES ABOUT SIXTY SEVEN PERCENT OF ITS OIL WELL SERVICES BUSINESS IS ON NATURAL GAS WELLS AND NATURAL GAS PRICES HAVE REMAINED HEALTHY SO FAR BUT IF GAS PRICES FOLLOW OIL PRICES ON THEIR DOWNWARD CURVE AS SOME INDUSTRY OBSERVERS BELIEVE THEY WILL MR. ERIKSON SAYS WE'LL JUST ADJUST OUR ORGANIZATION DOWN WE HAVE LEARNED TO ALWAYS BE PREPARED TO ADJUST TO CHANGES IN THE MARKET IF MR. ERIKSON SCALES BACK OPERATIONS IT WON'T BE THE FIRST TIME AFTER TAKING OVER AS CHIEF EXECUTIVE IN NINETEEN EIGHTY SEVEN AFTER MR. CHILES STEPPED DOWN FROM THAT POSITION HE REMAINED CHAIRMAN MR. ERIKSON CUT OPERATIONS LAID OFF EMPLOYEES AND FILED FOR BANKRUPTCY PROTECTION MR. CHILES'S CORPORATE JET WAS ONE OF THE FIRST THINGS TO GO WESTERN'S COMFORTABLE OFFICES IN WEST FORT WORTH WERE SOLD AND THE COMPANY'S ELABORATE CORPORATE MUSEUM WAS GIVEN AWAY MANY EXECUTIVES WERE FIRED AND MR. CHILES WASN'T REPLACED AFTER HE RETIRED AS CHAIRMAN IN NINETEEN EIGHTY EIGHT HE DIED LAST YEAR AT THE AGE OF EIGHTY THREE NOW THERE ARE FEW LAYERS OF MANAGEMENT MR. ERIKSON HIMSELF HOLDS MULTIPLE TITLES HE'S CHIEF EXECUTIVE CHAIRMAN AND PRESIDENT AT WESTERN AND HAS ALSO BEEN PRESIDENT OF WESTERN PETROLEUM SERVICES GROUP SINCE THE PREVIOUS HEAD OF THE SUBSIDIARY WAS DISMISSED IN NINETEEN EIGHTY EIGHT MOREOVER HALF OF WESTERN'S TWO THOUSAND EMPLOYEES HAVE THEIR SALARIES TIED TO THE COMPANY'S PROFITABILITY WITH INCENTIVES ACCOUNTING FOR TEN PERCENT TO FORTY PERCENT OF THEIR COMPENSATION SAYS MR. ERIKSON THAT MEANS THE SALARY BUDGET AUTOMATICALLY DROPS WHENEVER PROFITS DO OTHER COMPANIES HAVE INCENTIVE PLANS BUT WESTERN'S IS UNUSUALLY COMPREHENSIVE WESTERN HAS GOT PLACES WHERE FIELD WORKERS ARE ON INCENTIVE PLANS THAT'S UNUSUAL QUOTE SAYS JAMES WICKLUND AN ANALYST AT RAUSCHER PIERCE REFNES INCORPORATED WESTERN HAS ADDED TO ITS CUSHION BY VIRTUALLY GETTING RID OF ITS OFFSHORE DRILLING CONTRACTING BUSINESS IN OCTOBER IT SOLD NINE OF ITS ELEVEN OFFSHORE RIGS FOR ONE HUNDRED FIFTY MILLION DOLLARS AND FOCUSING ON ITS OIL SERVICE BUSINESS OF THE TWO SECTORS MR. ERIKSON WAS LESS COMFORTABLE WITH CONTRACTING BECAUSE IT FLUCTUATES MORE RAPIDLY WITH THE PRICE OF GAS AND OIL THAN OIL SERVICE WHICH IS DONE ON BOTH NEW AND EXISTING WELLS NOW THE COMPANY IS FREE TO CONCENTRATE ON ITS BIGGEST STRENGTH WELL STIMULATION WHICH INVOLVES PRESSURE PUMPING ENORMOUS AMOUNTS OF SANDS OR LIQUIDS INTO THE GROUND TO CREATE CRACKS IN THE EARTH THAT OIL CAN FLOW THROUGH THAT BUSINESS IS LESS COMPETITIVE THAN CONTRACTING AND PLAYS TO THE COMPANY'S STRONG RELATIONSHIPS WITH DOMESTIC INDEPENDENT PRODUCERS WESTERN IS ALSO ON THE WAY TOWARD CLEANING UP A CAPITAL STRUCTURE THAT TWO YEARS AGO SEEMED ABOUT TO SEND THE COMPANY ON A SECOND TRIP THROUGH BANKRUPTCY COURT THE PROBLEMS AROSE WHEN GAS PRICES PLUNGED IN EARLY NINETEEN NINETY TWO WESTERN'S STOCK FELL TO ABOUT THREE DOLLARS A SHARE AS INVESTORS WORRIED THE COMPANY WOULDN'T BE ABLE TO MEET PAYMENTS ON ONE HUNDRED SIXTY MILLION DOLLARS IN DEBT BUT WESTERN RESCHEDULED SOME PAYMENTS AND LATER PAID OFF BANK LOANS BY ISSUING NINETY FIVE MILLION DOLLARS IN HIGH INTEREST BONDS LAST MONTH WESTERN ANNOUNCED A PLAN TO PAY OFF THOSE BONDS AT ONE DOLLAR AND NINETEEN CENTS ON THE DOLLAR BY USING SOME OF THE PROCEEDS FROM THE SALE OF THE DRILLING RIGS EVEN IF BONDHOLDERS ACCEPT THE OFFER IN A VOTE SCHEDULED TO BEGIN THIS WEEK AND BE COMPLETED IN ABOUT A MONTH WESTERN WILL HAVE SOME FIFTY MILLION DOLLARS IN CASH TO HELP WEATHER HARD TIMES OR EVEN TO TAKE ADVANTAGE OF BARGAIN BASEMENT PRICES TO SNAP UP OTHER OIL FIELD SERVICE CONCERNS NESTLE S. A. ANNOUNCED PLANS TO INVEST FORTY FIVE MILLION DOLLARS IN TWO DAIRY PRODUCT VENTURES IN QINGDAO IN THE PROVINCE OF SHANDONG IN EASTERN CHINA THE SWISS FOOD AND BEVERAGE CONCERN WILL HOLD A SEVENTY FIVE PERCENT STAKE IN EACH VENTURE BOTH WITH QINGDAO MILK COURSE COMPANY BRISTOL AEROSPACE LIMITED A CANADIAN SUBSIDIARY OF ROLLS ROYCE P. L. C. HAS RECEIVED A THREE POINT SIX MILLION DOLLAR CONTRACT TO SUPPLY THE U. S. AIR FORCE WITH SUPPORT ASSEMBLIES FOR AIRCRAFT ENGINES THE CONTRACT WAS RECEIVED THROUGH CANADIAN COMMERCIAL CORPORATION A CANADIAN GOVERNMENT CONTRACTING AGENCY BRISTOL AEROSPACE IS BASED IN WINNIPEG MANITOBA FEDERAL HOME LOAN MORTGAGE CORPORATION OR FREDDIE MAC SAID THAT FOURTH QUARTER NET INCOME JUMPED THIRTY TWO PERCENT TO TWO HUNDRED FOUR MILLION DOLLARS OR ONE DOLLAR AND FOUR CENTS A SHARE THAT COMPARES WITH NET INCOME OF ONE HUNDRED FIFTY FIVE MILLION DOLLARS OR EIGHTY CENTS A SHARE A YEAR EARLIER THE GOVERNMENT SPONSORED CONCERN SAID REVENUE ROSE TWENTY FOUR PERCENT TO FIVE HUNDRED TWENTY ONE MILLION DOLLARS FROM FOUR HUNDRED TWENTY ONE MILLION DOLLARS A YEAR EARLIER THE COMPANY'S PROFIT COMES PRIMARILY FROM FEES EARNED FROM BUYING MORTGAGES AND PACKAGING THEM AS SECURITIES AND INTEREST COLLECTED ON THE LOANS IT KEEPS AS INVESTMENT IN THE QUARTER FREDDIE MAC'S RETURN ON ITS RETAINED MORTGAGE PORTFOLIO INCREASED FORTY ONE PERCENT TO THREE HUNDRED TWENTY FOUR MILLION DOLLARS COMPARED WITH TWO HUNDRED THIRTY MILLION DOLLARS A YEAR EARLIER IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY FREDDIE MAC SHARES CLOSED AT FIFTY FOUR DOLLARS AND SEVENTY FIVE CENTS UP ONE POINT THREE SEVEN FIVE DOLLARS FOR THE YEAR NET GREW TWENTY SIX PERCENT TO SEVEN HUNDRED EIGHTY SIX MILLION DOLLARS OR FOUR DOLLARS AND SEVEN CENTS A SHARE FROM SIX HUNDRED TWENTY TWO MILLION DOLLARS OR THREE DOLLARS AND TWENTY NINE CENTS A SHARE THE YEAR BEFORE REVENUE ROSE NINETEEN PERCENT TO TWO POINT OH ONE BILLION DOLLARS FROM ONE POINT SIX NINE BILLION DOLLARS THE TEXAS FORECLOSURE PICTURE IS STILL A LONG WAY FROM HEALTHY THE TOTAL NUMBER OF FORECLOSURES HAS DROPPED BY MORE THAN FIFTY SIX PERCENT SINCE NINETEEN EIGHTY NINE THE LARGEST SUCH DECLINE OF ANY STATE AND FROM NINETEEN NINETY TWO TO NINETEEN NINETY THREE TEXAS FORECLOSURES DROPPED BY A HEALTHY FIFTEEN PERCENT BUT THE IMPROVEMENT SAYS MORE ABOUT HOW BAD THINGS WERE THAN IT DOES ABOUT HOW GOOD THINGS ARE IN FACT A TRUER PICTURE CAN BE GLEANED BY LOOKING AT THE ACTUAL RATE OF FORECLOSURE THE NUMBER OF FORECLOSURES PER ONE THOUSAND PROPERTIES IN TEXAS NINE OUT OF EVERY ONE THOUSAND PROPERTIES WERE FORECLOSED IN NINETEEN NINETY THREE ACCORDING TO T. R. W. REDI PROPERTY DATA IN RIVERSIDE CALIFORNIA TWO TEXAS COUNTIES DALLAS AND TARRANT WITH RATES OF ELEVEN AND TWELVE RESPECTIVELY WERE ABOVE THE STATE AVERAGE RECESSION WRACKED SOUTHERN CALIFORNIA HAS A HIGHER RATE BUT NOT MUCH HIGHER SOUTHERN CALIFORNIA POSTED A FORECLOSURE RATE OF ELEVEN PROPERTIES PER ONE THOUSAND LAST YEAR COMPARED WITH SEVEN PROPERTIES PER ONE THOUSAND IN NINETEEN NINETY TWO SO WHAT DO THE NUMBERS MEAN RESEARCHERS SAY THAT ALTHOUGH THE NUMBER OF FORECLOSURES IN TEXAS CONTINUES TO DROP THE STATE IS FAR FROM A HEALTHY RATE OF THREE OR FOUR FORECLOSURES PER ONE THOUSAND QUOTE ANYTHING BELOW FIVE IS INDICATIVE OF A MORE HEALTHY MARKET QUOTE SAYS NIMA NATTAGH MARKET ANALYST WITH T. R. W. REDI MOREOVER MR. NATTAGH SAYS UNTIL TEXAS' FORECLOSURE RATE REACHES A HEALTHIER LEVEL RESIDENTIAL AND COMMERCIAL PRICES WILL CONTINUE TO SUFFER FORECLOSURES TEND TO DRIVE DOWN THE PRICE OF COMPARABLE PROPERTIES THAT ARE SELLING UNDER NORMAL CONDITIONS MR. NATTAGH SAYS AND THE FUTURE MORE OF THE SAME ANALYSTS SAY FORECLOSURE RATES PROBABLY WILL DROP ANOTHER TEN PERCENT TO TWENTY PERCENT IN THE NEXT COUPLE OF YEARS BUT THE GLUT OF TROUBLED PROPERTY STILL LOOMS OVER THE MARKET AND IT'S GOING TO TAKE A LONG TIME FOR FORECLOSURE RATES TO REACH THE HEALTHY LEVELS OF THE EARLY NINETEEN EIGHTIES IF THEY EVER DO THE NUMBER OF FORECLOSURES IN TEXAS COUNTIES IN SEVERAL STATES AND TEXAS COUNTIES MONTHS FIGURES INCLUDE BOTH RESIDENTIAL AND COMMERCIAL FORECLOSURES REPORTED IN MAJOR METROPOLITAN COUNTIES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BLACK AND DECKER CORPORATION TWO HUNDRED FIFTY MILLION DOLLARS OF NOTES DUE FEBRUARY FIRST TWO THOUSAND SIX PRICED AS SEVENS AT NINETY NINE POINT SEVEN ONE SEVEN TO YIELD SEVEN POINT OH THREE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF ONE HUNDRED THIRTY TWO BASIS POINTS ABOVE TREASURYS RATED B. A. ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND TRIPLE B. MINUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED CHEMICAL BANKING CORPORATION TWO HUNDRED MILLION DOLLARS OF SUBORDINATED NOTES DUE JANUARY FIFTEENTH TWO THOUSAND NINE PRICED AS SIX POINT FIVES AT NINETY NINE POINT SEVEN SEVEN SEVEN TO YIELD SIX POINT FIVE TWO THREE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES WERE PRICED AT A SPREAD OF EIGHTY ONE BASIS POINTS ABOVE TREASURYS RATED B. A. A. ONE BY MOODY'S AND SINGLE A MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY C. S. FIRST BOSTON INCORPORATED DUTY FREE INTERNATIONAL INCORPORATED ONE HUNDRED FIFTEEN MILLION DOLLARS OF NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS SEVENS AT NINETY NINE POINT SIX TO YIELD SEVEN POINT OH FIVE SIX PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE HUNDRED THIRTY FIVE BASIS POINTS ABOVE TREASURYS RATED B. A. ONE BY MOODY'S AND TRIPLE B. ONE BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY AND COMPANY G. T. E. NORTH INCORPORATED TWO HUNDRED FIFTY MILLION DOLLARS OF DEBENTURES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS SIXES AT NINETY NINE POINT OH SEVEN FIVE TO YIELD SIX POINT ONE TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF FORTY BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLE A ONE BY AND DOUBLE A MINUS BY S. AND P. THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY DILLON READ AND COMPANY G. T. E. NORTH IS A UNIT OF G. T. E. CORPORATION MERCANTILE BANK N. A. SEVENTY FIVE MILLION DOLLARS OF SUBORDINATED NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS SIX POINT THREE SEVEN FIVES AT NINETY NINE POINT FIVE OH ONE TO YIELD SIX POINT FOUR FOUR FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SEVENTY FIVE BASIS POINTS ABOVE TREASURYS RATED SINGLE A THREE BY MOODY'S AND TRIPLE B. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED MERCANTILE BANK IS A UNIT OF MERCANTILE BANCORPORATION INCORPORATED MITCHELL ENERGY DEVELOPMENT CORPORATION TWO HUNDRED FIFTY MILLION DOLLARS OF SENIOR NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND FOUR PRICED AT PAR TO YIELD SIX POINT SEVEN FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE HUNDRED FIVE BASIS POINTS ABOVE TREASURYS RATED B. A. A. THREE BY MOODY'S AND TRIPLE B. MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY C. S. FIRST BOSTON INCORPORATED PUBLIC SERVICE COMPANY OF COLORADO TWO HUNDRED TWELVE POINT SEVEN MILLION DOLLARS OF FIRST COLLATERALIZED TRUST BONDS PRICED BY UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY ACCORDING TO M. C. M. CORPORATEWATCH THE FIRST TRANCHE ONE HUNDRED TWO POINT SEVEN MILLION DOLLARS OF FIRST COLLATERALIZED TRUST BONDS DUE JANUARY FIRST TWO THOUSAND ONE WAS PRICED AS SIXES AT NINETY NINE POINT SIX NINE EIGHT TO YIELD SIX POINT OH FIVE THREE PERCENT THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF SIXTY BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE ONE HUNDRED TEN MILLION DOLLARS OF FIRST COLLATERALIZED TRUST BONDS DUE JANUARY FIRST TWO THOUSAND TWENTY FOUR WAS PRICED AS SEVEN POINT TWO FIVES AT NINETY EIGHT POINT FOUR NINE ONE TO YIELD SEVEN POINT THREE SEVEN FIVE PERCENT THE BONDS NONCALLABLE FOR TEN YEARS WERE PRICED AT A SPREAD OF NINETY SEVEN BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED B. A. A. ONE BY MOODY'S AND TRIPLE B. PLUS BY S. AND P. SALOMON INCORPORATED ONE HUNDRED FIFTY MILLION DOLLARS OF NOTES DUE JANUARY FIFTEENTH TWO THOUSAND SIX PRICED AS SIX POINT SEVEN FIVES AT NINETY NINE POINT NINE SEVEN ONE TO YIELD SIX POINT SEVEN FIVE FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE HUNDRED FIVE BASIS POINTS ABOVE TREASURYS RATED SINGLE A THREE BY MOODY'S AND SINGLE A MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED SOUTHERN UNION COMPANY FOUR HUNDRED SEVENTY FIVE MILLION DOLLARS OF DEBENTURES DUE FEBRUARY FIRST TWO THOUSAND TWENTY FOUR PRICED AT PAR TO YIELD SEVEN POINT SIX PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF ONE HUNDRED TWENTY BASIS POINTS ABOVE TREASURYS RATED B. A. A. THREE BY MOODY'S AND TRIPLE B. ONE BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY STUDENT LOAN MARKETING ASSOCIATION ONE HUNDRED MILLION DOLLARS OF FLOATING RATE NOTES DUE JANUARY TWENTY FIRST NINETEEN NINETY SEVEN PRICED AT PAR ACCORDING TO M. C. M. CORPORATEWATCH THE COUPON ON THE NONCALLABLE NOTES WILL FLOAT DAILY AND PAY QUARTERLY AT TWO HUNDRED FIFTY FIVE BASIS POINTS BELOW THE PRIME RATE THE FIRST COUPON WILL BE SET APRIL TWENTY FIRST THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INCORPORATED TYCO INTERNATIONAL LIMITED ONE HUNDRED FIVE MILLION DOLLARS OF NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS SIX POINT THREE SEVEN FIVES AT NINETY NINE POINT TWO TWO SIX TO YIELD SIX POINT FOUR EIGHT TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF SEVENTY FIVE BASIS POINTS ABOVE TREASURYS RATED B. A. A. THREE BY MOODY'S AND TRIPLE B. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY J. P. MORGAN SECURITIES INCORPORATED UNION PACIFIC CORPORATION ONE HUNDRED FIFTY MILLION DOLLARS OF NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS SIX POINT ONE TWO FIVES AT NINETY NINE POINT TWO SEVEN TO YIELD SIX POINT TWO TWO FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR SEVEN YEARS WERE PRICED AT A SPREAD OF FIFTY TWO BASIS POINTS ABOVE TREASURYS RATED SINGLE A TWO BY MOODY'S AND SINGLE A ONE BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY C. S. FIRST BOSTON INCORPORATED VIRGINIA ELECTRIC AND POWER COMPANY ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF FIRST AND REFUNDING MORTGAGE BONDS DUE JANUARY FIRST TWO THOUSAND TWENTY FOUR PRICED AS SEVENS AT NINETY EIGHT POINT SIX THREE SEVEN TO YIELD SEVEN POINT ONE ONE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE BONDS NONCALLABLE FOR TEN YEARS WERE PRICED AT A SPREAD OF SIXTY EIGHT POINT FIVE BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLE A TWO BY MOODY'S AND SINGLE A ONE BY S. AND P. THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY SALOMON BROTHERS INCORPORATED VEPCO IS A UNIT OF DOMINION RESOURCES INCORPORATED CONGRESS ROTISSERIE INCORPORATED INTITIAL PUBLIC OFFERING OF ONE HUNDRED TWENTY FIVE THOUSAND CLASS A COMMON SHARES PRICED AT EIGHT DOLLARS EACH THROUGH COBURN AND MEREDITH INCORPORATED ACCORDING TO THE COMPANY PEOPLES BANCORP OF INDIANAPOLIS INITIAL OFFERING OF THREE HUNDRED NINETY TWO THOUSAND ONE HUNDRED FIFTY SEVEN NONVOTING COMMON SHARES PRICED AT TWENTY FIVE DOLLARS AND FIFTY CENTS EACH THROUGH UNDERWRITERS LED BY MCDONALD AND COMPANY SECURITIES INCORPORATED AND RAFFENSPERGER HUGHES AND COMPANY FLORIDA BOARD OF EDUCATION ONE HUNDRED EIGHTY TWO MILLION DOLLARS OF FULL FAITH AND CREDIT PUBLIC EDUCATION CAPITAL OUTLAY BONDS APPARENTLY WON BY A MERRILL LYNCH AND COMPANY GROUP THE BONDS RATED DOUBLE A ONE BY MOODY'S AND S. AND P. WERE PRICED FOR REOFFERING TO YIELD FROM TWO POINT SEVEN FIVE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT THREE FIVE PERCENT IN TWO THOUSAND TWENTY FOUR HOUSTON TEXAS ONE HUNDRED TWO POINT SEVEN MILLION DOLLARS OF PUBLIC IMPROVEMENT REFUNDING BONDS SERIES NINETEEN NINETY FOUR A TENTATIVELY PRICED BY A GOLDMAN SACHS AND COMPANY GROUP TO YIELD FROM TWO POINT FIVE FIVE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT TWO FIVE PERCENT IN TWO THOUSAND ELEVEN TO TWELVE UNDERWRITERS EXPECT THE BONDS WILL BE RATED DOUBLE A ONE BY MOODY'S AND DOUBLE A MINUS BY S. AND P. NASSAU COUNTY N. Y. TWO HUNDRED FIFTY SIX POINT FOUR MILLION DOLLARS OF GENERAL OBLIGATION REFUNDING SERIAL BONDS SERIES NINETEEN NINETY FOUR A AND SERIES NINETEEN NINETY FOUR B. TENTATIVELY PRICED BY A SMITH BARNEY SHEARSON INCORPORATED GROUP TO YIELD FROM TWO POINT TWO PERCENT IN NINETEEN NINETY FOUR TO FIVE POINT ONE PERCENT IN TWO THOUSAND THIRTEEN TO SIXTEEN THE OFFERING IS F. G. I. C. INSURED AND RATED TRIPLE A ONE BY MOODY'S AND S. AND P. THE OFFERING CONSISTS OF ONE HUNDRED SEVENTY TWO POINT FIVE MILLION DOLLARS OF SERIAL GENERAL IMPROVEMENT REFUNDING BONDS SERIES NINETEEN NINETY FOUR A AND EIGHTY THREE POINT NINE MILLION DOLLARS OF SERIAL COMBINED SEWER DISTRICTS REFUNDING BONDS SERIES NINETEEN NINETY FOUR B. PHILADELPHIA ONE HUNDRED SEVENTY NINE MILLION DOLLARS OF GAS WORKS REVENUE BONDS TENTATIVELY PRICED BY A PAINEWEBBER INCORPORATED GROUP THERE ARE VARIOUS INSURED AND UNINSURED BONDS WITH THE HIGHEST YIELD FIVE POINT SEVEN FIVE PERCENT ON UNINSURED BONDS DUE TWO THOUSAND FIFTEEN THERE ARE FORTY FOUR MILLION DOLLARS OF BONDS INSURED BY AMBAC INDEMNITY CORPORATION PRICED TO YIELD FROM THREE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT FOUR PERCENT IN TWO THOUSAND FIFTEEN THERE ARE FIFTY EIGHT POINT TWO MILLION DOLLARS OF BONDS INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION PRICED TO YIELD FROM THREE POINT FOUR PERCENT IN NINETEEN NINETY SIX TO FOUR POINT EIGHT FIVE PERCENT IN TWO THOUSAND FIVE THERE ARE THIRTY SIX POINT THREE MILLION DOLLARS OF BONDS INSURED BY FINANCIAL SECURITY ASSURANCE DUE TWO THOUSAND TWENTY ONE TO YIELD FIVE POINT FIVE PERCENT AND DUE TWO THOUSAND TWENTY FOUR TO YIELD FIVE POINT FIVE FIVE PERCENT AND THERE ARE FORTY POINT SIX MILLION DOLLARS OF UNINSURED BONDS PRICED TO YIELD FROM FIVE PERCENT IN TWO THOUSAND TWO TO FIVE POINT SEVEN PERCENT IN TWO THOUSAND FIFTEEN INSURED BONDS ARE RATED TRIPLE A ONE BY MOODY'S AND BY S. AND P. THE UNINSURED BONDS ARE RATED B. A. A. ONE BY MOODY'S AND TRIPLE B. ONE BY S. AND P. PORT AUTHORITY OF NEW YORK AND NEW JERSEY ONE HUNDRED MILLION DOLLARS REVENUE CONSOLIDATED BONDS APPARENTLY WON BY A PRUDENTIAL SECURITIES INCORPORATED GROUP THE BONDS WERE PRICED FOR REOFFERING TO YIELD FROM FIVE PERCENT IN TWO THOUSAND NINE TO FIVE POINT TWO EIGHT PERCENT IN TWO THOUSAND TWENTY THREE TO TWENTY FOUR BONDS DUE TWO THOUSAND TWENTY NINE AREN'T PUBLICLY REOFFERED FEDERAL NATIONAL MORTGAGE ASSOCIATION FIVE HUNDRED MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY C. S. FIRST BOSTON INCORPORATED THE OFFERING SERIES NINETEEN NINETY FOUR TO TWENTY IS BACKED BY THE AGENCY'S FIFTEEN YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF ONE HUNDRED SEVENTY EIGHT MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION FIVE HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY MERRILL LYNCH AND COMPANY THE OFFERING SERIES NINETEEN NINETY FOUR TO TWENTY THREE IS BACKED BY THE AGENCY'S THIRTY YEAR SIX PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SIX POINT SEVEN PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF THREE HUNDRED FIFTY SEVEN MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION TWO HUNDRED TWENTY TWO POINT NINE MILLION DOLLARS OF REMIC SECURITIES OFFERED BY BEAR STEARNS AND COMPANY THE OFFERING SERIES NINETEEN NINETY FOUR TO TWENTY ONE IS BACKED BY SEVERAL OF THE AGENCY'S REMIC AND STRIPPED MORTGAGE BACKED SECURITIES ABBEY NATIONAL TREASURY SERVICES P. L. C. U. K. THREE BILLION FRENCH FRANCS OF SIX PERCENT EUROBONDS DUE FEBRUARY SEVENTEENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT ONE EIGHT FIVE VIA SOCIETE BANQUE SUISSE AND CAISSE DE DEPOT ET CONSIGNATION REOFFERED AT NINETY NINE POINT FIVE SIX TO YIELD SIX POINT OH SIX PERCENT A MARGIN OF THIRTY EIGHT BASIS POINTS OVER THE MID YIELD ON FRENCH TREASURY'S FIVE POINT FIVE PERCENT OBLIGATIONS ASSIMABLES DU TRESOR DUE APRIL TWO THOUSAND FOUR GUARANTOR ABBEY NATIONAL P. L. C. FEES TWO A. B. N. AMRO BANK N. V. NETHERLANDS FIVE HUNDRED MILLION DUTCH GUILDERS OF SIX POINT ONE TWO FIVE PERCENT EUROBONDS DUE FEBRUARY SIXTEENTH TWO THOUSAND SEVEN AT ISSUE PRICE NINETY NINE POINT SEVEN FOR OWN ACCOUNT REOFFERED AT FIXED PRICE NINETY NINE TO YIELD SIX POINT TWO FOUR PERCENT A MARGIN OF THIRTY BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE BRITISH GAS P. L. C. U. K. TWO HUNDRED MILLION POUNDS OF SEVEN POINT ONE TWO FIVE PERCENT EUROBONDS DUE FEBRUARY TWO THOUSAND FORTY FOUR AT ISSUE PRICE ONE HUNDRED POINT SIX ONE SIX VIA LEAD UNDERWRITER CREDIT SUISSE FIRST BOSTON LIMITED REOFFERED AT NINETY EIGHT POINT SEVEN FOUR ONE TO YIELD SEVEN POINT THREE ONE PERCENT A MARGIN OF FIFTY BASIS POINTS OVER EIGHT POINT SEVEN FIVE PERCENT U. K. GILT OF TWO THOUSAND SEVENTEEN BONDS HAVE STANDARD SPENS CLAUSE AND CALLABLE AT ANY TIME AT HIGHER OF PAR OR PRICE TO GIVE YIELD EQUAL TO PREVAILING LONG DATED GILT FEES TWO POINT FIVE COMPAGNIE BANCAIRE FRANCE ONE BILLION FRENCH FRANCS OF ZERO COUPON EUROBONDS DUE MARCH SECOND NINETEEN NINETY FIVE AT ISSUE AND FIXED REOFFER PRICE NINETY NINE POINT EIGHT VIA BANQUE PARIBAS REDEMPTION FORMULA IS AS FOLLOWS AT PREMIUM OF EIGHT PERCENT TIMES NUMBER OF DAYS FROM PAYMENT DATE DEVIDED BY THREE HUNDRED SIXTY WHILE THREE MONTH PARIS INTERBANK OFFERED RATE IS IN DEFINED RANGE RANGE DEFINED AS FOLLOWS LOWER RANGE IS FIVE POINT SIX PERCENT MINUS DIFFERENCE OF J. TIMES FIVE POINT SIX PERCENT MINUS FOUR POINT TWO PERCENT DIVIDED BY THREE HUNDRED SIXTY FIVE UPPER RANGE SIX POINT SIX PERCENT MINUS DIFFERENCE OF J. TIMES SIX POINT SIX PERCENT MINUS FIVE POINT TWO PERCENT DIVIDED BY THREE HUNDRED SIXTY FIVE J. EQUALS EXACT NUMBER OF DAYS FROM PAYMENT DATE TO MATURITY FEES ZERO POINT ONE TWO FIVE C. S. FIRST BOSTON INCORPORATED SWISS PARENT ONE HUNDRED FIFTY MILLION DOLLARS OF FLOATING RATE NOTES OFF ITS EURO MEDIUM TERM NOTE PROGRAM PRICED AND REOFFERED AT PAR VIA CREDIT SUISSE FIRST BOSTON NOTES BEAR COUPON OF SIX MONTH LONDON INTERBANK OFFERED RATE LESS ZERO POINT ONE TWO FIVE TO A MINIMUM OF FIVE PERCENT NO MAXIMUM FEES ZERO POINT THREE SEVEN FIVE DEUTSCHE BANK AUSTRALIA LIMITED MELBOURNE GERMAN PARENT ONE HUNDRED MILLION AUSTRALIAN DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY NINETEEN NINETY NINE AT ISSUE AND FIXED REOFFER PRICE NINETY NINE POINT NINE TWO VIA DEUTSCHE BANK A. G. LONDON INTEREST PAID QUARTERLY AT ZERO POINT TWO FIVE POINT BELOW THE THREE MONTH AUSTRALIAN BANK BILLS RATE GUARANTOR DEUTSCHE BANK A. G. FEES ZERO POINT ONE FIVE DEUTSCHE SIEDLUNGS UND LANDESRENTENBANK GERMANY TWO HUNDRED FIFTY MILLION DOLLARS OF FOUR POINT FIVE PERCENT EUROBONDS DUE FEBRUARY EIGHTEENTH NINETEEN NINETY SEVEN AT ISSUE PRICE ONE HUNDRED POINT EIGHT FOUR ONE VIA A. B. N. AMRO BANK N. V. REOFFERED AT NINETY NINE POINT SIX FIVE FOUR TO YIELD FOUR POINT SIX THREE PERCENT A MARGIN OF THIRTEEN BASIS POINTS ABOVE THE FOUR POINT THREE SEVEN FIVE PERCENT U. S. TREASURY DUE NINETEEN NINETY SIX FEES ONE POINT THREE SEVEN FIVE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT SUPRANATIONAL TWO HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY TWENTY FIRST NINETEEN NINETY FIVE AT ISSUE AND FIXED REOFFER PRICE PAR VIA MERRILL LYNCH INTERNATIONAL LIMITED INTEREST PAID QUARTERLY AT THREE MONTH LIBOR PLUS ZERO POINT FIVE SUBJECT TO FOLLOWING RANGES ZERO TO FOUR PERCENT IN THE FIRST SIX MONTHS AND ZERO TO FOUR POINT TWO FIVE PERCENT IN THE SECOND SIX MONTHS FEES ZERO POINT ONE FIVE GENERAL ELECTRIC CAPITAL CORPORATION U. S. PARENT TWO HUNDRED FIFTY MILLION DOLLARS OF SIX PERCENT EUROBONDS DUE FEBRUARY EIGHTEENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT FOUR NINE FOUR VIA DEUTSCHE BANK A. G. LONDON REOFFERED AT NINETY NINE POINT EIGHT ONE NINE TO YIELD SIX POINT OH TWO PERCENT A MARGIN OF TWENTY ONE BASIS POINTS ABOVE COMPARABLE U. S. TREASURY FEES TWO GENERAL ELECTRIC CAPITAL CORPORATION U. S. PARENT FIVE HUNDRED MILLION SWEDISH KRONOR OF SIX POINT FIVE PERCENT EUROBONDS DUE FEBRUARY EIGHTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED ONE POINT SIX TWO FIVE VIA DEUTSCHE BANK A. G. LONDON REOFFERED AT PAR TO YIELD SIX POINT FIVE PERCENT MARGIN OF EIGHTEEN BASIS POINTS ABOVE COMPARABLE SWEDISH GOVERNMENT BOND FEES ONE POINT EIGHT SEVEN FIVE HOUSING SECURITIES LIMITED U. K. ONE HUNDRED MILLION POUNDS OF EIGHT POINT THREE SEVEN FIVE PERCENT EUROBONDS DUE JANUARY TWENTY FIFTH TWO THOUSAND NINETEEN AT ISSUE PRICE ONE HUNDRED POINT OH TWO ONE POUNDS VIA HAMBROS BANK LIMITED AT CO MANAGERS' BREAK EVEN PRICE OF NINETY NINE POINT TWO SEVEN ONE POUNDS BONDS YIELD EIGHT POINT FOUR FOUR PERCENT A MARGIN OF ONE HUNDRED SEVENTY EIGHT BASIS POINTS OVER EIGHT POINT SEVEN FIVE PERCENT U. K. GILT OF TWO THOUSAND SEVENTEEN FEES ZERO POINT SEVEN FIVE INTEREST PAYABLE SEMIANNUALLY KISSEI PHARMACEUTICAL COMPANY JAPAN ONE HUNDRED MILLION DOLLARS OF ONE POINT THREE SEVEN FIVE PERCENT EUROBONDS WITH EQUITY WARRANTS DUE FEBRUARY TENTH NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA DAIWA EUROPE LIMITED WARRANTS EXERCISABLE TO PURCHASE SHARES IN KISSEI AT INDICATED PREMIUM TWO POINT FIVE PERCENT CONVERSION PERIOD RUNS FROM FEBRUARY TWENTY FOURTH TO JANUARY TWENTY NINTH NINETEEN NINETY EIGHT TERMS FIXED JANUARY TWENTY FOURTH FEES TWO POINT TWO FIVE POINTS INCLUDING SPECIAL LEAD MANAGER'S FEE ZERO POINT ONE FIVE KNP B. T. ANTILLIANA N. V. NETHERLANDS ONE BILLION AUSTRIAN SCHILLINGS OF SIX POINT THREE SEVEN FIVE PERCENT PUBLIC BONDS DUE FEBRUARY THIRD TWO THOUSAND ONE PRICED AT ONE HUNDRED ONE POINT SIX TWO FIVE VIA CREDITANSTALT BANKVEREIN FEES TWO POINT ONE NEW ZEALAND DAIRY BOARD FINANCE LIMITED NEW ZEALAND FIFTY MILLION NEW ZEALAND DOLLARS OF FIVE POINT TWO FIVE PERCENT EUROBONDS DUE FEBRUARY TWENTY FIFTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED POINT NINE FIVE VIA HAMBROS BANK LIMITED AT CO MANAGERS' BREAK EVEN PRICE NINETY NINE POINT OH SEVEN FIVE THE BONDS YIELD FIVE POINT FOUR SEVEN PERCENT A MARGIN OF EIGHTEEN BASIS POINTS ABOVE NEW ZEALAND GOVERNMENT BOND DUE FEBRUARY NINETEEN NINETY EIGHT FEES TWO NORDDEUTSCHE LANDESBANK GIROZENTRALE GERMANY ONE HUNDRED MILLION SWISS FRANCS OF TWO POINT TWO FIVE PERCENT PUBLIC BONDS WITH EQUITY PURCHASE WARRANTS DUE MARCH SIXTEENTH TWO THOUSAND FOUR PRICED AT PAR VIA MERRILL LYNCH CAPITAL A. G. EACH NOTE CARRIES SIXTY WARRANTS EXERCISABLE BETWEEN JANUARY EIGHTEENTH AND JANUARY FIFTEENTH NINETEEN NINETY SEVEN INTO REGISTERED SHARES OF SWISS BANK CORPORATION STRIKE PRICE TWO HUNDRED FORTY EIGHT FRANCS FEES TWO POINT SEVEN FIVE RHEINISCHE HYPOTHEKENBANK A. G. GERMANY ONE HUNDRED MILLION MARKS OF REVERSE COUPON FLOATING RATE EURONOTES DUE FEBRUARY NINTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT EIGHT VIA TRINKAUS AND BURKHARDT K. G. A. A. ANNUAL COUPON FOR FIRST TWO YEARS FIVE POINT TWO FIVE PERCENT IN YEARS THREE TO SIX COUPON SEMIANNUAL AT SIX MONTH LIBOR FLAT IN YEARS SEVEN TO TEN COUPON RETURNS TO FIXED ANNUAL RATE SEVEN PERCENT FEES TWO POINT TWO SALOMON INCORPORATED U. S. ONE HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY TWO THOUSAND FOUR AT ISSUE AND FIXED REOFFER PRICE PAR VIA SALOMON BROTHERS INTERNATIONAL LIMITED INTEREST PAID SEMIANNUALLY AT SIX MONTH LIBOR LESS ZERO POINT ONE TWO FIVE POINT SUBJECT TO MINIMUM FIVE POINT ONE TWO FIVE PERCENT FEES ZERO POINT THREE SEVEN FIVE SWEDEN SOVEREIGN TWO BILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY TWO THOUSAND ONE AT ISSUE AND FIXED REOFFER PRICE NINETY NINE POINT SEVEN FIVE VIA CREDIT SUISSE FIRST BOSTON LIMITED AND U. B. S. LIMITED INTEREST PAID QUARTERLY AT THE THREE MONTH LIBOR LESS ZERO POINT ONE TWO FIVE POINT CALLABLE QUARTERLY FROM THE FIFTH ANNIVERSARY AT PAR FEES ZERO POINT ONE SEVEN FIVE TOHO ZINC COMPANY JAPAN ONE HUNDRED MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE ZERO POINT SIX TWO FIVE PERCENT NOTES DUE MARCH THIRTY FIRST TWO THOUSAND AT PAR VIA LEAD MANAGER NIKKO BANK SWITZERLAND EACH SWISS FRANC NOTE CONVERTIBLE FROM FEBRUARY TWENTY SECOND TO MARCH TWENTY FOURTH TWO THOUSAND AT EXPECTED TWO POINT FIVE PERCENT PREMIUM OVER CLOSING SHARE PRICE JANUARY TWENTIETH WHEN TERMS FIXED FEES ONE POINT EIGHT SEVEN FIVE TONAMI TRANSPORTATION COMPANY JAPAN ONE HUNDRED MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE FEBRUARY THIRD NINETEEN NINETY EIGHT WITH EQUITY PURCHASE WARRANTS CARRYING ZERO POINT SEVEN FIVE PERCENT COUPON AT PAR VIA BANK VON ERNST AND COMPANY EACH NOTE CARRIES FIFTY WARRANTS EXERCISABLE FROM FEBRUARY SEVENTEENTH TO JANUARY TWENTY SEVENTH NINETEEN NINETY EIGHT TO BUY COMPANY SHARES AT EXPECTED PREMIUM TWO POINT FIVE PERCENT ABOVE CLOSING SHARE PRICE JANUARY TWENTY SIXTH WHEN TERMS FIXED FEES ONE POINT SIX TWO FIVE YIEH LOONG COMPANY TAIWAN EIGHTY MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE TWO PERCENT NOTES DUE DECEMBER THIRTY FIRST TWO THOUSAND AT PAR VIA SWISS BANK CORPORATION EACH NOTE CONVERTIBLE FROM FEBRUARY FIFTEENTH TO DECEMBER FIFTEENTH TWO THOUSAND AT EXPECTED SIX PERCENT PREMIUM OVER CLOSING SHARE PRICE JANUARY TWENTIETH WHEN TERMS FIXED FEES ONE POINT EIGHT SEVEN FIVE AMERICAN AIRLINES AND ITS PILOTS UNION AGREED TO SET A SPECIFIC TIMETABLE FOR CONTRACT TALKS AND TURN TO MEDIATION AND ULTIMATELY ARBITRATION IF THE TWO SIDES DON'T AGREE ON A NEW CONTRACT PROMPTLY THE MOVE IS AN ATTEMPT BY THE TWO SIDES TO AVOID THE YEAR LONG NEGOTIATIONS AND MESSY DENOUEMENT OF AMERICAN'S CONTRACT TALKS WITH FLIGHT ATTENDANTS WHICH CULMINATED IN A FIVE DAY STRIKE JUST BEFORE THANKSGIVING THE UNIT OF A. M. R. CORPORATION WHICH WILL ANNOUNCE FOURTH QUARTER AND YEAR END RESULTS TODAY HAS SAID THE WALKOUT WOULD REDUCE A. M. R.'S FOURTH QUARTER AFTER TAX EARNINGS BY ONE HUNDRED SIXTY MILLION DOLLARS AND THE COMPANY WILL REPORT A QUOTE SIGNIFICANT QUOTE LOSS FOR BOTH PERIODS IN THE NINE MONTHS THE COMPANY HAD NET INCOME OF ONE HUNDRED FORTY THREE MILLION DOLLARS OR ONE DOLLAR AND THIRTY CENTS A SHARE IN A JOINT STATEMENT AMERICAN PRESIDENT ROBERT CRANDALL AND RICH LAVOY PRESIDENT OF THE ALLIED PILOTS ASSOCIATION SAID THEY ENDORSED THE NEW NEGOTIATING STRATEGY WHICH THEY CALLED FRESH APPROACH MR. CRANDALL PUT FORTH THE IDEA FOR THE APPROACH AFTER A. P. A. SUGGESTED WAYS TO IMPROVE ITS RELATIONSHIP WITH MANAGEMENT THE PLANS CALLS FOR NEGOTIATIONS LIMITED TO SIXTY TO NINETY DAYS IF NO AGREEMENT HAS BEEN REACHED THE COMPANY AND A. P. A. WOULD ENTER MEDIATION FOR THE SAME PERIOD IF MEDIATION DOESN'T WORK THE TWO SIDES AGREED TO SUBMIT TO ARBITRATION A. P. A.'S TEN THOUSAND PILOT MEMBERS AND ITS BOARD MUST RATIFY FRESH APPROACH BEFORE CONTRACT TALKS BEGIN AMERICAN'S PILOTS CONTRACT BECOMES AMENDABLE AUGUST THIRTY FIRST UNDER AIRLINE LABOR LAW THE CONTRACT EXPIRES BUT THE TERMS STAY IN EFFECT UNTIL THE SIDES AGREE ON A NEW ONE OR UNTIL FEDERAL MEDIATORS DECLARE AN IMPASSE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY A. M. R. FELL THIRTY SEVEN POINT FIVE CENTS TO SIXTY NINE POINT EIGHT SEVEN FIVE DOLLARS SYNCORDIA A SUBSIDIARY OF BRITISH TELECOMMUNICATIONS P. L. C. SAID IT WON A MULTIMILLION POUND CONTRACT TO PROVIDE SERVICES TO GLAXO HOLDINGS P. L. C. THE INTERNATIONAL PHARMACEUTICALS GROUP BASED IN LONDON B. T. SAID SYNCORDIA WHICH IS ITS GLOBAL OUTSOURCING SUBSIDIARY WILL SUPPLY MANAGED PRIVATE NETWORK SERVICES TO CONNECT SITES IN THE UNITED KINGDOM THE U. S. AND CANADA THE NETWORK WILL PROVIDE VOICE DATA AND VIDEO SERVICES THE CONTRACT IS INITIALLY FOR A TWO YEAR PERIOD AND GLAXO WILL SEND COMMERCIAL AND SCIENTIFIC INFORMATION BETWEEN ITS VARIOUS SITES PUBLIC SERVICE COMPANY OF COLORADO SAID IT WILL REDEEM ABOUT ONE HUNDRED NINETY MILLION DOLLARS OF BONDS AND TWENTY TWO POINT SIX MILLION DOLLARS OF PROMISSORY NOTES THE REDEMPTIONS INCLUDE ALL OUTSTANDING SEVEN POINT TWO FIVE PERCENT FIRST MORTGAGE BONDS DUE TWO THOUSAND ONE AT A PRICE OF ONE HUNDRED ONE POINT SEVEN ONE PERCENT OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE SEVEN POINT FIVE OH PERCENT SERIES DUE TWO THOUSAND TWO AT A PRICE OF ONE HUNDRED TWO POINT THREE SEVEN PERCENT OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE SEVEN POINT SIX TWO FIVE PERCENT SERIES DUE TWO THOUSAND THREE AT A PRICE OF ONE HUNDRED TWO POINT THREE SEVEN PERCENT PLUS ACCRUED INTEREST AND THE EIGHT POINT TWO FIVE PERCENT SERIES DUE TWO THOUSAND SEVEN AT A PRICE OF ONE HUNDRED THREE POINT TWO FIVE PERCENT PLUS ACCRUED INTEREST THE NATURAL GAS AND ELECTRICITY COMPANY ALSO SAID IT INTENDS TO SELL TWO HUNDRED TWELVE MILLION DOLLARS OF ITS FIRST COLLATERAL TRUST BONDS TO PROVIDE FUNDS FOR THE REDEMPTIONS BOISE CASCADE CORPORATION DOGGED BY POOR MARKETS FOR PAPER PRODUCTS REPORTED A SLIGHTLY NARROWED FOURTH QUARTER NET LOSS OF TWENTY THREE POINT SEVEN MILLION DOLLARS OR NINETY EIGHT CENTS A SHARE THE BIG FOREST PRODUCTS CONCERN'S NET LOSS FOR THE PERIOD WAS LESS THAN LAST YEAR'S FOURTH QUARTER LOSS OF TWENTY NINE POINT SIX MILLION DOLLARS BUT THE PER SHARE LOSS IN THE LATEST QUARTER ECLIPSED LAST YEAR'S PER SHARE LOSS OF NINETY SEVEN CENTS BECAUSE OF INCREASED PREFERRED DIVIDENDS IN THE LATEST PERIOD SALES IN THE QUARTER INCREASED TEN PERCENT TO NINE HUNDRED NINETY SEVEN MILLION DOLLARS FROM NINE HUNDRED FIVE MILLION DOLLARS THE QUARTERLY LOSS WAS TOWARD THE HIGH END OF ANALYSTS' ESTIMATES WHICH HAD RANGED FROM SIXTY CENTS A SHARE TO ONE DOLLAR AND FIVE CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INCORPORATED NONETHELESS BOISE CASCADE'S STOCK ROSE SEVENTY FIVE CENTS TO CLOSE AT TWENTY SIX DOLLARS AND SEVENTY FIVE CENTS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FOR ALL OF NINETEEN NINETY THREE BOISE CASCADE'S NET LOSS NARROWED TO SEVENTY SEVEN POINT ONE MILLION DOLLARS OR THREE DOLLARS AND SEVENTEEN CENTS A SHARE AS IMPROVED BUILDING PRODUCTS EARNINGS PARTIALLY OFFSET CONTINUED HEAVY LOSSES IN PAPER PRODUCTS LAST YEAR THE COMPANY REPORTED A NET LOSS OF TWO HUNDRED TWENTY SEVEN POINT FIVE MILLION DOLLARS OR SIX DOLLARS AND SEVENTY THREE CENTS A SHARE INCLUDING A SEVENTY THREE MILLION DOLLAR CHARGE REFLECTING AN ACCOUNTING CHANGE SALES FOR THE FULL YEAR ROSE SEVEN PERCENT TO THREE POINT NINE SIX BILLION DOLLARS FROM THREE POINT SEVEN TWO BILLION DOLLARS A YEAR AGO JOHN B. FERY CHAIRMAN AND CHIEF EXECUTIVE SAID HE EXPECTS THE COMPANY'S BUILDING PRODUCTS SEGMENT TO PERFORM WELL IN NINETEEN NINETY FOUR MAINLY BECAUSE OF INCREASED BUILDING ACTIVITY AND STRONG PRICING BUT HE SAID QUOTE VERY DIFFICULT QUOTE MARKET CONDITIONS IN THE PAPER BUSINESS COULD CONTINUE TO CRIMP THE COMPANY'S OVERALL RESULTS PAPER PRICES HAVE BEEN DEPRESSED FOR YEARS BY OVERSUPPLY AND THE SLOW ECONOMY TOKYO STOCKS ENDED TUESDAY'S SEE SAW SESSION WITH A ONE POINT ONE PERCENT LOSS FOLLOWING LATE PROFIT TAKING BY JAPANESE INSTITUTIONAL INVESTORS LONDON EQUITIES POSTED STRONG GAINS ON BETS THAT BRITISH INTEREST RATES ARE POISED TO DROP FRANKFURT PRICES ALSO SLID ONE POINT ONE PERCENT ON WORRIES ABOUT WEAK CORPORATE CURRENCY AND BOND MARKET DEVELOPMENTS HONG KONG STOCKS JUMPED TWO POINT ONE PERCENT ON BULLISHNESS ABOUT A SINO U. S. TRADE AGREEMENT BUT TAIPEI SHARES SKIDDED TWO POINT NINE PERCENT AS FINANCIAL ISSUES DROPPED SHARPLY WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED THIRTEEN POINT FOUR THREE UP ZERO POINT FOUR ZERO REFLECTING HIGHER MARKETS IN ALL REGIONS CASINO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT TWO HUNDRED SEVENTEEN POINT ONE SIX UP FIVE POINT THREE FIVE OR TWO POINT FIVE PERCENT WITH RESORTS WORLD OF MALAYSIA POSTING A FOUR POINT NINE PERCENT GAIN IN ITS LOCAL CURRENCY SHIPBUILDING STOCKS TRAILED AT ONE HUNDRED FIFTEEN POINT FOUR NINE DOWN ONE POINT TWO SEVEN OR ONE POINT ONE PERCENT WITH BREMER VULKAN OF GERMANY SLIDING FIVE PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH SANK TWO HUNDRED FORTY EIGHT POINT THREE THREE POINTS MONDAY TUMBLED TWO HUNDRED TEN POINT EIGHT TWO TO EIGHTEEN THOUSAND FIVE HUNDRED FOURTEEN POINT FIVE FIVE WHICH ALSO WAS THE INTRADAY LOW IN TRADING WEDNESDAY THE NIKKEI ROSE THREE HUNDRED TWENTY SIX POINT OH THREE POINTS TO CLOSE THE MORNING SESSION AT EIGHTEEN THOUSAND EIGHT HUNDRED FORTY POINT FIVE EIGHT TUESDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT TWO HUNDRED EIGHTY MILLION SHARES LITTLE CHANGED FROM TWO HUNDRED EIGHTY POINT FOUR MILLION SHARES A DAY EARLIER RETREATING ISSUES OUTNUMBERED ADVANCING ISSUES FIVE HUNDRED EIGHTY THREE THOUSAND THREE HUNDRED NINETY NINE THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH DROPPED NINE POINT SEVEN ONE POINTS MONDAY SURRENDERED FOUR POINT FIVE TWO TO ONE THOUSAND FIVE HUNDRED ELEVEN POINT THREE NINE THE MAIN BUYERS CONTINUED TO BE OVERSEAS INVESTORS THOUGH THEY WERE LESS AGGRESSIVE DESPITE A SUPPORTIVE NOMURA RESEARCH INSTITUTE REPORT THAT WEAK JAPANESE BOND PRICES COULD FUEL A RISE BY THE NIKKEI TO TWENTY FOUR THOUSAND IN THE NEAR TERM SOME INVESTORS WEREN'T CONVINCED A COLLAPSING BOND MARKET WAS GOOD NEWS SAYING RISING BOND YIELDS GENERALLY REFLECT A BELIEF INTEREST RATES WILL RISE WHICH CAN REDUCE STOCKS' ALLURE AS INVESTORS LOCK IN HIGH YIELDS ON FIXED INCOME INVESTMENTS MEANWHILE THE STOCK MARKET LACKED DIRECTION PENDING PARLIAMENTARY ACTION ON POLITICAL REFORM THOUGH SOME COMMUNICATIONS AND ELECTRONICS SHARES EXTENDED THEIR RALLY ON TALK OF MULTIMEDIA GROWTH IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX CLIMBED TWENTY NINE POINT TWO POINTS TO THREE THOUSAND FOUR HUNDRED THIRTY SEVEN POINT OH THE F. T. THIRTY STOCK INDEX ROSE SEVEN POINT EIGHT POINTS TO TWO THOUSAND SIX HUNDRED TWENTY THREE POINT THREE VOLUME WAS NINE HUNDRED SIXTY FOUR POINT NINE MILLION SHARES UP FROM EIGHT HUNDRED EIGHT POINT THREE MILLION SHARES A DAY EARLIER SMALLER STOCKS MEASURED BY THE F. T. S. E. TWO HUNDRED FIFTY INDEX JUMPED SIXTY FOUR POINT FIVE POINTS OR ONE POINT SIX PERCENT CROSSING THE FOUR THOUSAND THRESHOLD TO END AT FOUR THOUSAND THIRTEEN POINT THREE ITS THIRD CONSECUTIVE RECORD FINISH INTEREST RATE FUTURES AND GILTS OR BRITISH GOVERNMENT BONDS ALSO RALLIED WHILE THE FOREIGN EXCHANGE MARKET BEGAN PRICING IN LOWER INTEREST RATES LAST WEEK'S STOCK LOSSES ON PESSIMISM ABOUT HOW SOON BRITAIN'S BASE LENDING RATE WOULD BE REDUCED WERE CONSIDERED OVERDONE AND THE MARKET EXTENDED THE REBOUND THAT BEGAN FRIDAY ONE TRIGGER FOR THE BULLISH MOOD WAS THE POUND'S PERSISTENT STRENGTH WHICH HAS PROMPTED SPECULATION THAT BRITAIN MUST CUT RATES TO CHECK ITS CURRENCY OR RISK HARMING EXPORTS AND DAMPING ECONOMIC RECOVERY YESTERDAY'S BIGGEST GAINING SECTORS WERE THOSE SENSITIVE TO RATES BUILDING AND CONSTRUCTION MERCHANT BANKING AND UTILITIES IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX SLUMPED TWENTY THREE POINT FIVE FOUR POINTS TO TWO THOUSAND ONE HUNDRED THIRTEEN POINT EIGHT FOUR THE DROP WAS BLAMED ON THE WEAK GERMAN MARK AND BONDS CORPORATE FINANCIAL PROBLEMS AND DIMINISHING HOPES FOR GERMAN INTEREST RATE CUTS THIS WEEK SENTIMENT ALSO WAS DEPRESSED BY TECHNICAL ANALYSES OF MARKET TRENDS THAT INDICATED AN ONLY SHORT TERM REBOUND FOLLOWED BY A CONSOLIDATION IN PARIS AFTER LINGERING IN NEGATIVE TERRITORY IN THE MORNING STOCKS WERE PUSHED UP BY A BARGAIN HUNTING RALLY TO END WITH GAINS IN AMSTERDAM SHARES ROSE LIFTED BY BUOYANT U. S. AND EUROPEAN MARKETS THOUGH A SOFTER DOLLAR HURT SOME BLUE CHIPS AND INVESTORS TOOK PROFITS ON SOME BANKS AND INSURERS WHILE BARGAIN HUNTERS SNAPPED UP FOOD AND BEVERAGE COMPANIES BUT IN MILAN THE BROADER MARKET INCLUDING ELECTRONICALLY TRADED ISSUES FELL ON PROFIT TAKING AND CONSOLIDATION FOLLOWING THE PREVIOUS DAY'S JUMP IN MADRID PRICES BOUNCED BACK FROM A WEAK START TO SURGE TO A RECORD SPURRED BY HOPES FOR A CUT IN GERMAN INTEREST RATES WHICH COULD BE FOLLOWED BY A REDUCTION IN SPANISH RATES IN STOCKHOLM FOLLOWING A FOUR POINT FOUR PERCENT RALLY TO THREE CONSECUTIVE RECORD HIGHS STOCKS FELL ON PROFIT TAKING IN BRUSSELS SHARES ADVANCED ONE PERCENT ON FOREIGN BUYING AND GOOD EARNINGS EXPECTED BY BLUECHIP COMPANIES IN HONG KONG DESPITE LATE PROFIT TAKING THE SOLID GAINS THE MARKET'S THIRD CONSECUTIVE RISE TO THE HIGHEST LEVEL SINCE JANUARY TENTH BEGAN ACCUMULATING EARLY PARTLY ON POSITIVE BANK EARNINGS AND A BELATED REACTION TO THE AGREEMENT BETWEEN THE U. S. AND CHINA ON TEXTILE QUOTAS THAT AVERTED A TRADE WAR HONG KONG MEDIA PLAYED UP BENEFITS OF THE TEXTILE DEAL AND HOPES FOR SIMILARLY AVOIDING TENSIONS IN PURSUIT OF CHINA'S WINNING U. S. RENEWAL OF FAVORABLE TRADE STATUS THE FINANCIAL AND PROPERTY SECTORS EACH SURGED TWO POINT FOUR PERCENT AND THE COMMERCIAL AND INDUSTRIAL SUBINDEX GAINED TWO POINT TWO PERCENT IN TAIPEI THE MARKET'S BROAD PLUNGE WAS LED BY A THREE POINT FIVE PERCENT DECLINE IN FINANCIAL ISSUES PROMPTED BY THE TAIWAN GOVERNMENT'S CONSERVATIVE STANCE REGARDING STOCKS A DAY EARLIER THE CENTRAL BANK GOVERNOR REJECTED A PROPOSED INCREASE IN THE STOCK INVESTMENT CEILING FOR FOREIGN INSTITUTIONS ALL SECTORS FELL ELECTRONICS LOST THREE POINT THREE PERCENT CONSTRUCTION SHED THREE PERCENT AND TEXTILES DROPPED TWO POINT SEVEN PERCENT IN SEOUL SHARES RALLIED ONE POINT ONE PERCENT FOLLOWING THREE LOSING SESSIONS IN A ROW AMID FEARS OF POSSIBLE SELLING BY THE GOVERNMENT'S STABILIZATION FUND IN SYDNEY EQUITIES DECLINED AS AUSTRALIAN AND OVERSEAS INVESTORS CONSOLIDATED POSITIONS FOLLOWING THE MARKET'S RECENT STRENGTH IN SINGAPORE PRICES RECOVERED FROM EARLY WEAKNESS TO CLOSE MIXED IN THIN CAUTIOUS DEALINGS THE CHOPPY ACTIVITY OF THE PAST WEEK BEGAN TO STEADY IN KUALA LUMPUR STOCKS ROSE REBOUNDING FROM AN EARLY DECLINE ON BROAD PROFIT TAKING THAT ALSO KNOCKED PRICES LOWER THE PREVIOUS DAY THE MARKET RECOVERED WHEN SUPPORT FOR BLUE CHIPS AND OTHER SOLID STOCKS ENCOURAGED BROADER BUYING IN MEXICO CITY STOCKS RALLIED TWO PERCENT AS THE SOUTHERN REBELS SITUATION REMAINED QUIET AND INVESTORS FOCUSED ON STRONG CORPORATE EARNINGS ESTIMATES AMONG CORPORATE DEVELOPMENTS IN TOKYO JAPAN AIRLINES JUMPED TEN YEN OR ONE POINT SIX PERCENT TO SIX HUNDRED FORTY YEN FIVE DOLLARS AND SEVENTY SEVEN CENTS THE CARRIER SAID THAT IT WOULD POST A TWO HUNDRED SEVENTY MILLION DOLLAR PRETAX LOSS FOR THE YEAR ENDING MARCH THIRTY FIRST AND THAT IT PLANNED TO CUT FIVE THOUSAND JOBS OR TWENTY THREE PERCENT OF ITS WORK FORCE AND SLASH CAPITAL SPENDING FORTY EIGHT PERCENT TO THREE POINT NINE SIX BILLION DOLLARS OVER THE NEXT FOUR YEARS IN A BID TO HOLD DOWN FARES AS COMPETITIVENESS HAS BEEN HURT BY THE JAPANESE YEN'S STRENGTH AGAINST THE DOLLAR 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END IT'S INEVITABLE AFTER A TRAGEDY SUCH AS MONDAY'S LOS ANGELES EARTHQUAKE PEOPLE LOOK FOR A SILVER LINING AND JUST AS INEVITABLY SOME SEE ONE IN THE ECONOMY SURE THE DISASTER TOOK A TERRIBLE TOLL THE THINKING GOES BUT THE CLEANUP WILL PROVE A BOON TO THE LOCAL ECONOMY MORE JOBS LOTS OF INSURANCE MONEY FOR REBUILDING HOMES AND BUSINESSES A CHANCE TO CONSTRUCT BETTER HIGHWAYS QUOTE WITHIN A MONTH THE ECONOMY WILL BE BOOMING QUOTE IN THE LOS ANGELES AREA PREDICTS DOUGLAS WOODWARD AN ECONOMIST AT UNIVERSITY OF SOUTH CAROLINA WHO STUDIED THE EFFECT HURRICANE HUGO HAD ON SOUTH CAROLINA IN NINETEEN EIGHTY NINE THEY WILL GET A REAL BOOST OUT OF IT NO QUESTION ABOUT IT IT IS LIKE A SHOT OF ADRENALINE THAT MOMENTARILY COUNTERS THE TRAGIC LOSS OF HUMAN LIFE AND PROPERTY BUT THE OPERATIVE WORD IS MOMENTARILY BUSINESSPEOPLE AND ECONOMISTS MR. WOODWARD INCLUDED AGREE THAT THE SHOT HAS ONLY TEMPORARY AND UNEVENLY DISTRIBUTED EFFECTS YES NATURAL DISASTERS DO UNLEASH A FLOOD OF MONEY AND INVESTMENT BUT IF THE EXPERIENCES OF SOUTH FLORIDA AFTER HURRICANE ANDREW IN NINETEEN NINETY TWO AND SAN FRANCISCO AFTER ITS NINETEEN EIGHTY NINE EARTHQUAKE ARE TYPICAL THE FLOOD SOON EBBS TO A TRICKLE AND THE WEALTH LOST BY THE REGIONAL AND NATIONAL ECONOMY IS JUST THAT LOST THERE IS A GOOD REASON THESE EVENTS ARE CALLED DISASTERS EVENTUALLY THE COST OF REBUILDING BROKEN BRIDGES AND HIGHWAYS TRANSLATES INTO HIGHER TAXES OR DIMINISHED TAX REVENUES THE COST OF REPLACING ROOFS AND WALLS AND CARS AND CARPETS SHOWS UP IN HIGHER INSURANCE PREMIUMS FOR THE UNINSURED DEPLETED SAVINGS MAY TAKE YEARS TO REPLENISH FOR SOME ESPECIALLY THE POOR PROPERTY LOST MAY NEVER BE REPLACED THE WEALTH LOSS IS CONSIDERABLE SAYS DAVID HENSLEY A REGIONAL ECONOMIC ANALYST WITH SALOMON BROTHERS IN NEW YORK IN FLORIDA ABOUT TWO THIRDS OF THE PRIVATE REBUILDING COSTS AFTER HURRICANE ANDREW WERE INSURED ESTIMATES DAVID WYSS OF D. R. I. SLASH MCGRAW HILL A FORECASTING FIRM IN LEXINGTON MASSACHUSETTS THE GOVERNMENT PICKED UP ABOUT HALF OF THE REMAINDER AND PEOPLE HAD TO DIP INTO THEIR SAVINGS FOR THE REST HE SAYS THE RESULT IN THE END THE STATE WAS WORSE OFF HE FIGURES THE AVERAGE OVERALL LOSS IN ASSETS WAS ABOUT ONE THOUSAND FIVE HUNDRED DOLLARS PER HOUSEHOLD BUT REIMBURSEMENTS ONLY MADE UP FOR ABOUT SEVEN HUNDRED FIFTY DOLLARS PER HOUSEHOLD MR. WYSS SAYS WHAT'S MORE THE ADDITIONAL TWO BILLION DOLLARS IN DIRECT GOVERNMENT RELIEF THAT WAS PUMPED INTO THE FLORIDA ECONOMY DIDN'T PROVIDE MUCH PERMANENT BENEFIT SINCE IT WENT TO RESTORING SERVICES PEOPLE WERE ALREADY GETTING BEFORE IN FACT FEW LOCAL ECONOMIES GET A LONG TERM BOOST FROM NATURAL DISASTERS BECAUSE REPAIRS ESSENTIALLY JUST RETURN THE COMMUNITIES TO WHERE THEY WERE BEFORE IN LOS ANGELES WHERE ASSESSMENTS OF THE DAMAGE WIDENED YESTERDAY WITH SOME SUGGESTING IT MIGHT SURPASS THE SEVEN BILLION DOLLARS FROM THE NINETEEN EIGHTY NINE SAN FRANCISCO QUAKE CONSTRUCTION ACTIVITY HAS BEEN SLACK AND THE REBUILDING EFFORT WILL SURELY PROVIDE EMPLOYMENT FOR MANY BUT WHILE THAT IS A SHORT TERM STIMULUS THEY WILL GO BACK TO UNEMPLOYMENT IF BROADER ECONOMIC CONDITIONS DON'T CHANGE SAYS ANTHONY SHORRIS DEPUTY EXECUTIVE DIRECTOR OF THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY WHICH DEALT WITH THE AFTERSHOCKS OF NEW YORK'S WORLD TRADE CENTER BOMBING ELEVEN MONTHS AGO MATTHEW DRENNAN A PROFESSOR OF REGIONAL PLANNING AT CORNELL UNIVERSITY IN ITHACA N. Y. SEES THE MATTER IN SIMPLE TERMS HE RECALLS THAT DURING THE DEPRESSION THERE WERE CRAZIES WHO SUGGESTED THAT IF EVERYONE WENT OUT AND THREW A BRICK THROUGH A WINDOW THE ECONOMY WOULD BE STIMULATED HIS RESPONSE TO THOSE WHO SEE TOO MUCH OF A SILVER LINING IN TODAY'S NATURAL DISASTERS THINK OF ALL THE OTHER USEFUL THINGS THE MONEY COULD BE SPENT ON WHICH IS THE LESSON OF HURRICANE ANDREW AND THE SAN FRANCISCO EARTHQUAKE HERE IS A LOOK HURRICANE ANDREW STRUCK SOUTH FLORIDA ON AUGUST TWENTY FOURTH NINETEEN NINETY TWO WITH A FURY THAT MADE IT THE NATION'S COSTLIEST NATURAL DISASTER IN TERMS OF PROPERTY LOSS IT INFLICTED SOME SIXTEEN BILLION DOLLARS IN DAMAGE ACCORDING TO THE INSURANCE INFORMATION INSTITUTE AN INDUSTRY GROUP IT DESTROYED TWENTY EIGHT THOUSAND HOMES AND MADE FORTY FIVE THOUSAND OTHERS UNINHABITABLE AT LEAST ONE HUNDRED EIGHTY THOUSAND PEOPLE WERE LEFT HOMELESS THE STORM QUOTE HAS NOT BEEN BENEFICIAL QUOTE TO THE AREA ECONOMY SAYS TAD DE MILLY THE MAYOR OF HOMESTEAD WHICH FELT THE FULL FORCE OF ANDREW'S SUSTAINED WINDS OF ONE HUNDRED FORTY MILES PER HOUR A YEAR AND A HALF LATER HOMESTEAD IS STILL REBUILDING ONE OF THE BIGGEST CASUALTIES WAS HOMESTEAD AIR FORCE BASE A VITAL PART OF THE LOCAL ECONOMY BUT A PERENNIAL CANDIDATE ON LISTS OF POTENTIAL BASE CLOSINGS TORN APART BY THE STORM HOMESTEAD WAS SHUTTERED WITH IT WENT TWELVE THOUSAND JOBS SOON PEOPLE WERE LEAVING THE AREA THE CITY'S POPULATION SINCE THE STORM HAS FALLEN BY A THIRD TO EIGHTEEN THOUSAND AND ITS STRUCTURES ARE ONLY SIXTY PERCENT TO SEVENTY PERCENT REBUILT SAYS MR. DE MILLY REVENUE FROM THE CITY'S AD VALOREM TAX WHICH IS BASED ON PROPERTY VALUES IS ABOUT HALF OF WHAT IT WAS BEFORE ANDREW BLEW THROUGH WE ARE TWELVE TO EIGHTEEN MONTHS AWAY FROM WHERE WE WANT TO BE SAYS THE MAYOR OF COURSE THERE ARE ALWAYS SOME BUSINESSES THAT SEE AN UPTICK IN DEMAND AFTER A NATURAL DISASTER FULLY SIXTEEN BILLION DOLLARS OF INSURANCE MONEY WAS RELEASED INTO THE BROADER ECONOMY AFTER ANDREW STRUCK SOME FOUND ITS WAY TO SOUTH FLORIDA CONSTRUCTION COMPANIES ROOFERS AND AUTO DEALERS AMONG OTHERS WE BENEFITED FROM THE DISASTER SAYS ANTONIO FRAGA A MALL DEVELOPER WHO OWNS HOMESTEAD PLAZA THE FIRST MAJOR SHOPPING CENTER TO REOPEN IT IS NINETY NINE PERCENT LEASED MR. FRAGA SAYS AND AT HIGHER PRICES THAN BEFORE THE HURRICANE BUT FOR A SAD UNDERLYING REASON HIS COMPETITION WAS WIPED OUT I'M PRETTY MUCH IT HE SAYS WHERE THERE USED TO BE TWO CLOTHES STORES NOW THERE IS ONLY ONE JOSEPH HAYDEN OWNER OF FLAMINGO FORD ONE OF THE LARGEST CAR DEALERSHIPS IN HOMESTEAD CALLS ANDREW A NET LOSS THE STORM QUOTE WIPED OUT WHAT SHOULD HAVE BEEN A GOOD YEAR IN NINETEEN NINETY TWO QUOTE HE SAYS HIS BUSINESS IMPROVED IN NINETEEN NINETY THREE BUT NOT BEYOND THE EXPECTATIONS HE HAD BEFORE THE HURRICANE AND MONEY HE GOT FROM HIS INSURANCE COMPANY WON'T COVER THE COST OF REBUILDING HIS DEALERSHIP WHICH WAS LEVELED NOW MR. HAYDEN IS WORRIED ABOUT WHAT WILL HAPPEN WHEN WHAT IS LEFT OF THE POPULATION FINISHES REPLACING THE CARS DESTROYED BY ANDREW WE HAD A LIFETIME SUPPLY OF BODYWORK BUT NOW THAT BACKLOG IS OVER HE SAYS IT GIVES YOU AN UNEASY FEELING THERE IS CONSIDERABLE DISAGREEMENT OVER THE EFFECTS OF THE STORM FARTHER NORTH IN MIAMI JOHN ANDERSON PRESIDENT OF THE BEACON COUNCIL A CIVIC BUSINESS ORGANIZATION BELIEVES ANDREW HAS BEEN A NET BENEFIT TO THE MIAMI REGIONAL ECONOMY WE HAVE HAD SIX PERCENT GROWTH IN EMPLOYMENT IN THE FIFTEEN MONTHS SINCE THE HURRICANE HE SAYS OF THE FIFTY THOUSAND NEW JOBS CREATED SINCE ANDREW STRUCK ABOUT TWENTY THOUSAND ARE IN CONSTRUCTION AND RETAIL SALES MOST OF THESE ARE DUE TO THE POST DISASTER REBUILDING EFFORT HE SAYS MR. ANDERSON SAYS THE HURRICANE HAS ALLOWED THE REGION TO REPLACE OUTDATED INFRASTRUCTURE WITH STATE OF THE ART TECHNOLOGY SUCH AS FIBER OPTICS POSITIONING IT FOR FUTURE GROWTH IN A HISTORICAL PERSPECTIVE HURRICANE ANDREW WILL APPEAR AS A BLIP ON THE CHARTS HE SAYS JOHN GODFREY CHIEF ECONOMIST OF BARNETT BANKS INCORPORATED IN JACKSONVILLE SCOFFS AT THE IDEA THAT ANDREW BROUGHT ANY LASTING BENEFIT TO EITHER MIAMI OR FLORIDA AS A WHOLE QUOTE ALL THE ACTIVITY REFLECTS REPLACEMENT QUOTE HE SAYS IT'S LIKE BEING IN A VERY BAD CAR ACCIDENT EXPLAINS MR. GODFREY TWO YEARS AFTER YOU MIGHT RECOVER AND HAVE A NEW CAR BUT DON'T CALL THAT PERSON A WINNER IN THE SAN FRANCISCO AREA THE LOMA PRIETA QUAKE THAT STRUCK ON OCTOBER SEVENTEENTH NINETEEN EIGHTY NINE KILLED SIXTY SEVEN PEOPLE AND INJURED ABOUT SIX HUNDRED THE QUAKE'S EPICENTER WAS NEAR SANTA CRUZ AND IT MEASURED SEVEN POINT ONE ON THE RICHTER SCALE THERE WAS MORE PROPERTY LOSS IN DOLLAR TERMS THAN FROM ANY OTHER EARTHQUAKE IN THE NATION'S HISTORY ROAD REPAIR ALONE WILL COST ONE POINT THREE BILLION DOLLARS DESPITE DIRE EARLY PREDICTIONS MANY BAY AREA BUSINESSES WERE BACK TO NORMAL ALMOST IMMEDIATELY BUT THE EFFECTS OF THE EARTHQUAKE WERE NONETHELESS WIDESPREAD AND IN MANY CASES THEY ARE STILL BEING FELT TODAY CITY HALL IS STILL SHORED UP INSIDE BECAUSE OF DAMAGE SOME BUILDINGS ARE STILL CLOSED AND THERE ARE BIG HOLES IN THE FINANCIAL DISTRICT WHERE CONDEMNED BUILDINGS WERE TORN DOWN AND HAVEN'T YET BEEN REBUILT WITH ROADS STILL UNDER REPAIR DRIVING INTO SAN FRANCISCO IS NOW MORE DIFFICULT AND BUSINESS IN PARTS OF THE CITY HAS FALTERED MERCHANTS IN CHINATOWN SAY THEIR SALES ARE DOWN THIRTY PERCENT AND MANY STOREFRONTS ARE VACANT FOR THE FIRST TIME IN YEARS CHAMBER OF COMMERCE SAYS PEOPLE STILL DON'T COME COMMERCIAL RENTS ONCE AMONG THE HIGHEST IN THE CITY HAVE DROPPED SHARPLY IN SOME CASES ALMOST FIFTY PERCENT COMMUTING INTO SAN FRANCISCO FROM THE SOUTH STILL TAKES LONGER THAN IT USED TO BECAUSE OFF RAMPS AND INTERCHANGES HAVEN'T BEEN FIXED TRAFFIC HAS BEGUN TO SNARL BADLY AT A BIG INTERCHANGE CONNECTING HIGHWAY ONE HUNDRED ONE AND INTERSTATE TWO HUNDRED EIGHTY WHEN WORK FINALLY STARTED THERE LAST WEEK IT WILL PARTIALLY REOPEN LATE THIS YEAR BUT WON'T BE COMPLETED UNTIL NINETEEN NINETY SIX MEANWHILE COMMUTERS ARE BEING DETOURED ONTO CITY STREETS PROPERTY SALES AND VALUES DECLINED IN SAN FRANCISCO'S MARINA DISTRICT THE RESIDENTIAL AREA HARDEST HIT IMAGES OF MARINA APARTMENTS TILTING AND ABLAZE WERE REPEATEDLY SHOWN ON TELEVISION AT THE TIME REAL ESTATE PRICES STILL HAVEN'T RETURNED TO NINETEEN EIGHTY NINE LEVELS SAYS KIMBERLEE JEANS PRESIDENT OF PACIFIC UNION RESIDENTIAL BROKERAGE ALTHOUGH SHE SAYS GENERAL ECONOMIC WEAKNESS IS AS MUCH OR MORE TO BLAME AT THE TIME YOU FALL APART AT THE SEAMS BECAUSE YOU DON'T KNOW HOW MUCH DAMAGE WAS DONE SAYS EILEEN DILLON WHOSE MARINA HOME ULTIMATELY REQUIRED EIGHTY THOUSAND DOLLARS IN FOUNDATION REPAIRS AFTER THE QUAKE SHE FIGURES HER HOME IS STILL ONLY WORTH SEVENTY FIVE PERCENT OF ITS NINETEEN EIGHTY NINE VALUE I NEVER THINK ABOUT IT ANYMORE EXCEPT IF I CAN'T SLEEP SHE SAYS QUOTE THEN THE FIRST THING I THINK ABOUT IS EARTHQUAKES BUT I NEVER WOULD HAVE MOVED THE EARTHQUAKE'S DESTRUCTION LEFT BEHIND A DIFFERENT LANDSCAPE ALONG THE CITY'S EMBARCADERO WATERFRONT A FREEWAY OVERPASS DAMAGED BY THE QUAKE WAS ULTIMATELY TORN DOWN LEAVING A SPECTACULAR VIEW OF THE BAY AT SPLENDIDO RESTAURANT BUSINESS JUMPED FIFTEEN PERCENT SAYS T. J. JACOBBERGER GENERAL MANAGER BEFORE YOU WOULD LOOK OUT AND SEE CARS NOW WE HAVE A VIEW OF THE OCEAN TOURISTS ALWAYS WANT A VIEW WHEN THEY'RE DINING HE SAYS THE DEVASTATION WAS MORE COMPLETE IN SANTA CRUZ A COMMUNITY SOUTH OF SAN FRANCISCO WHEN THEN PRESIDENT BUSH TOURED THE AREA IT STUNNED HIM SAYS JOSEPH FERRARA PRESIDENT OF THE CITY'S DOWNTOWN ASSOCIATION ITS MAIN COMMERCIAL STRIP PACIFIC AVENUE FINALLY REOPENED JUST THREE MONTHS AGO DELAYED BY RED TAPE AND FINANCING WOES STILL WEEKEND TRAFFIC REMAINS AT SIXTY PERCENT OF WHAT IT WAS BEFORE THE QUAKE THE SANTA CRUZ AREA HAS LOST AN ESTIMATED THREE THOUSAND JOBS IN THE INTERVENING FOUR YEARS ABOUT FIVE PERCENT OF THE WORK FORCE SAYS JOSEPH WAHED ECONOMIST AT WELLS FARGO AND COMPANY HE SAYS VARIOUS LOCAL ECONOMIC INDICATORS SUCH AS PERSONAL INCOME CONSTRUCTION ACTIVITY AND RETAIL SALES ARE ALL FLAT OR DOWN BY THE END OF THE DECADE IT MAY GET BACK TO WHERE IT WAS IN NINETEEN EIGHTY EIGHT MR. WAHED SAYS IT TOOK A MONTH TO GET THE BAY BRIDGE REPAIRED CONSIDERED LIGHTENING FAST FOR SUCH A BIG ENGINEERING JOB BUT REPAIRS TO THE REST OF SAN FRANCISCO'S HIGHWAY SYSTEM HAVE GONE AT A SNAIL'S PACE THERE ARE NEW AND HORRENDOUS TRAFFIC BOTTLENECKS MANY OF THE MOST IMPORTANT OFF RAMPS INTO DOWNTOWN SAN FRANCISCO ARE STILL CLOSED HIGHWAY ENGINEERS HAD PLANNED TO REPAIR SEVERAL MAJOR EXIT RAMPS IN THE FINANCIAL DISTRICT BUT FOUND A YEAR AFTER THE EARTHQUAKE THAT IT WOULD COST LESS TO TEAR THEM DOWN AND REBUILD THEY HAVE JUST FINISHED TEARING THEM DOWN AND ARE NOW ONLY IN THE STUDY STAGE ON HOW TO REBUILD THEM ON THE OTHER HAND THE AREA SOUTH OF MARKET STREET BECAME MORE DESIRABLE WHEN THE FREEWAY DEMOLITION CHOKED OFF WHAT HAD BEEN A CONTINUOUS STEAM OF CARS DISGORGED BY AN OFF RAMP QUOTE FREEWAYS DIVIDE NEIGHBORHOODS AND POLARIZE QUOTE SAYS WILLIAM NORK MARKETING DIRECTOR AT C. B. COMMERCIAL REAL ESTATE GROUP INCORPORATED THEIR ABSENCE TENDS TO HAVE A UNIFYING EFFECT SIDEWALK CAFES HAVE SPROUTED UP IN THE AREA AND CONDOS THAT USED TO LOOK AT A FREEWAY NOW HAVE EXPANSIVE VIEWS OF THE BAY THAT'S BECOME ONE OF THE NICEST PLACES IN TOWN MR. NORK SAYS STILL AL KOBAR A SOUTHERN CALIFORNIA REAL ESTATE CONSULTANT SAYS ALL OF THE REBUILDING THAT HAS FOLLOWED THE QUAKE IS VERY SMALL CONSOLATION FOR THE DESTRUCTION THEY'RE NOT PRODUCTIVE JOBS THEY'RE JUST TRYING TO GET US BACK TO WHERE WE WERE SAYS MR. KOBAR YOU COULD GO BACK TO KEYNES'S IDEA OF HIRING PEOPLE TO BURY MONEY AND OTHER PEOPLE TO DIG IT UP HE SAYS IT'S KIND OF A SAD WAY TO EMPLOY PEOPLE SUN MICROSYSTEMS INCORPORATED SAID FISCAL SECOND QUARTER PROFIT NEARLY DOUBLED ON AN EIGHT PERCENT INCREASE IN REVENUE IN LINE WITH ANALYSTS' EXPECTATIONS NET INCOME FOR THE PERIOD ENDED DECEMBER TWENTY SIXTH WAS FORTY THREE POINT EIGHT MILLION DOLLARS OR FORTY SIX CENTS A SHARE UP EIGHTY TWO PERCENT FROM TWENTY FOUR POINT ONE MILLION DOLLARS OR TWENTY THREE CENTS A SHARE A YEAR EARLIER WHEN SUN WAS HIT BY PRODUCT START UP COSTS AND SHORTAGES ALTHOUGH THE RESULTS WERE QUOTE A LITTLE LIGHTER QUOTE THAN THE FORTY NINE CENTS A SHARE HE HOPED FOR SALOMON BROTHERS ANALYST JEFF CANIN SAID HE WAS PLEASED WITH SUN'S GROSS MARGINS FOR THE QUARTER WHICH WERE THIRTY NINE PERCENT UP SHARPLY FROM TWENTY THREE PERCENT A YEAR EARLIER REVENUE ROSE TO ONE POINT ONE THREE BILLION DOLLARS FROM ONE POINT OH FIVE BILLION DOLLARS AND BACK ORDERS REACHED RECORD LEVELS SUN CITED HIGH DEMAND FOR NEW PRODUCTS ESPECIALLY ITS NEW SERVERS HIGH END Z. X. AND S. X. GRAPHICS WORKSTATIONS AND SOLARIS SOFTWARE SEPARATELY SUN SAID MICHAEL LEHMAN SUN'S VICE PRESIDENT AND CORPORATE CONTROLLER WILL ASSUME THE POST OF CHIEF FINANCIAL OFFICER ON MARCH FIRST MR. LEHMAN SUCCEEDS KEVIN MELIA WHO IS MOVING TO THE EAST COAST FOR PERSONAL REASONS MR. MELIA WILL CONTINUE TO SERVE AS ACTING PRESIDENT OF ITS SUN MICROSYSTEMS COMPUTER CORPORATION UNIT UNTIL A SUCCESSOR IS NAMED AND AS A MEMBER OF SUN'S EXECUTIVE MANAGEMENT GROUP IN AN INTERVIEW MR. MELIA FORTY FOUR YEARS OLD SAID HE RULED OUT CONTINUING AS C. F. O. FROM BOSTON BECAUSE IT WOULDN'T BE FAIR EVEN IN THIS AGE OF DESKTOP VIDEO CONFERENCING EXECUTIVES NEED TO MAKE MANY OF THEIR DECISIONS IN REAL TIME FACE TO FACE AND OFTEN INFORMAL MEETINGS HE SAID SUN CHIEF EXECUTIVE SCOTT MCNEALY SAID HE AND MR. MELIA ARE EVALUATING A NUMBER OF OPPORTUNITIES FOR HIM TO LEAD WHILE LIVING ON THE EAST COAST WSFS FINANCIAL CORPORATION SAID ITS DIRECTORS WILL SEEK SHAREHOLDER APPROVAL TO CONVERT ITS EXPENSIVE PREFERRED STOCK TO COMMON STOCK THE FINANCIAL SERVICES CONCERN SAID IT PLANS TO CONVERT ITS TEN PERCENT CONVERTIBLE PREFERRED STOCK SERIES ONE INTO SIX POINT FOUR SEVEN SHARES OF COMMON STOCK THE PREFERRED STOCK ISSUED IN NINETEEN NINETY TWO CURRENTLY IS CONVERTIBLE AT ANY TIME AND IS CALLABLE ON JANUARY FIRST NINETEEN NINETY SIX A TWENTY FOUR POINT EIGHT PERCENT STAKE IS HELD BY QUAD C. INCORPORATED A CHARLOTTESVILLE VIRGINIA VENTURE CAPITAL COMPANY CHIEF FINANCIAL OFFICER WILLIAM ABBOTT SAID DIVIDENDS ON THE PREFERRED SHARES NORMALLY PAYABLE BEGINNING MARCH THIRTY FIRST WON'T BE PAID AS A RESULT OF THE PROPOSAL THE COMPANY SAID WSFS SAID THAT UNDER THE TERMS OF A RECENTLY COMPLETED PRIVATE PLACEMENT OF THIRTY TWO MILLION DOLLARS OF ELEVEN PERCENT SENIOR NOTES DUE TWO THOUSAND FIVE THE ANNUAL INTEREST RATE ON THE NOTES WILL RISE TO ELEVEN POINT FIVE PERCENT AFTER JUNE THIRTIETH IF MORE THAN FIFTY PERCENT OF THE PREFERRED SHARES ARE OUTSTANDING THE COMPANY SAID ITS ANNUAL INTEREST COSTS COULD RISE BY ONE HUNDRED SIXTY THOUSAND DOLLARS IF THE NUMBER OF PREFERRED SHARES ISN'T REDUCED THE CONVERSION REQUIRES A MAJORITY VOTE OF BOTH COMMON AND PREFERRED STOCKHOLDERS OF WHICH FORTY THREE PERCENT ARE OFFICERS DIRECTORS AND QUAD C. MR. ABBOTT SAID AS OF SEPTEMBER THIRTIETH THE COMPANY HAD FIVE POINT THREE MILLION SHARES OF COMMON STOCK OUTSTANDING AND ABOUT ONE POINT FOUR MILLION SHARES OF THE PREFERRED NIAGARA MOHAWK POWER CORPORATION SAID IT WILL ACCELERATE PREVIOUSLY ANNOUNCED PLANS TO REDUCE ITS WORK FORCE AND STREAMLINE OPERATIONS THE SYRACUSE N. Y. ELECTRIC AND GAS UTILITY SAID IT WILL LAY OFF ABOUT NINE HUNDRED EMPLOYEES INCLUDING TWO HUNDRED FIFTY MANAGEMENT POSITIONS DURING THE NEXT SEVERAL MONTHS THE COMPANY SAID THE LAYOFFS WERE PART OF AN OVERALL EFFORT TO REDUCE COSTS PREVIOUSLY NIAGARA MOHAWK PLANNED TO ELIMINATE ONE THOUSAND FOUR HUNDRED POSITIONS BY THE END OF NINETEEN NINETY FIVE AT THE END OF NINETEEN NINETY THREE IT HAD CUT SIX HUNDRED FORTY SIX JOBS INCLUDING TWO HUNDRED THREE MANAGEMENT POSITIONS UNDER THE PROGRAM CURRENTLY THE COMPANY HAS ABOUT ELEVEN THOUSAND TWO HUNDRED FIFTY EMPLOYEES YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING NIAGARA MOHAWK STOCK CLOSED AT NINETEEN POINT THREE SEVEN FIVE DOLLARS OFF TWELVE POINT FIVE CENTS JUST ABOVE ITS FIFTY TWO WEEK LOW OF NINETEEN POINT ONE TWO FIVE DOLLARS THE ANNOUNCEMENT OF ACCELERATED WORK FORCE REDUCTIONS CAME AFTER THE MARKET CLOSED A LATE WAVE OF SELLING LEFT THE DOW JONES INDUSTRIAL AVERAGE UNCHANGED FROM MONDAY'S RECORD LEVEL BOND PRICES ROSE AND THE DOLLAR FELL THE DOW JONES INDUSTRIALS FINISHED AT THREE THOUSAND EIGHT HUNDRED SEVENTY POINT TWO NINE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX ROSE ZERO POINT NINE FIVE TO FOUR HUNDRED SEVENTY FOUR POINT TWO FIVE AND THE NASDAQ COMPOSITE INDEX GAINED ZERO POINT EIGHT FOUR TO A RECORD SEVEN HUNDRED NINETY THREE POINT OH TWO STOCK PRICES WERE BUOYED BY SOME UPBEAT EARNINGS REPORTS NOTABLY CHRYSLER'S BETTER THAN EXPECTED FOURTH QUARTER PROFIT THE NEWS HELPED BOOST ALL THREE AUTO MAKERS SEVERAL BANKS ALSO REPORTED POSITIVE EARNINGS BUT SOME BANK STOCKS SLUMPED AS INVESTORS TOOK PROFITS ON THE GOOD NEWS QUOTE IT TENDS TO BE A BAD SIGN FOR A STOCK GROUP WHEN YOU GET GOOD EARNINGS NEWS AND THE STOCK PRICES MOVE DOWN QUOTE SAYS WALTER C. REVIS MARKET ANALYST AT HAMILTON INVESTMENTS IN CHICAGO IT'S SOMETIMES A SIGN THE GROUP MAY BE OVERBOUGHT BOND PRICES ROSE AS COMMODITIES PRICES INCLUDING OIL FELL BUT MARY JANE MATTS DIRECTOR OF INVESTMENT RESEARCH AT SOCIETY ASSET MANAGEMENT IN CLEVELAND SAYS THE RECENT WEAKNESS IN OIL PRICES MAY BE ENDING SHE ARGUES OIL PRICES MAY MOVE UP AS MUCH AS THREE DOLLARS TO ABOUT SEVENTEEN DOLLARS A BARREL BY THE END OF THE QUARTER IF THAT HAPPENS IT WILL PRECIPITATE A DRAMATIC CHANGE IN THE WAY THE FINANCIAL MARKETS FEEL ABOUT INFLATION MS. MATTS SAID WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED ZERO POINT FOUR ZERO TO ONE HUNDRED THIRTEEN POINT FOUR THREE STOCK PRICES ROSE VOLUME TOTALED THREE HUNDRED EIGHT POINT SIX MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND TWO HUNDRED TEN ISSUES ROSE AND EIGHT HUNDRED NINETY TWO FELL BOND PRICES CLIMBED THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE GAINED MORE THAN ONE QUARTER POINT OR OVER TWO DOLLARS AND FIFTY CENTS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT TWO SIX PERCENT THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN FOUR SIX FIVE MARKS AND ONE HUNDRED TEN POINT SEVEN FIVE YEN COMPARED WITH ONE POINT SEVEN FIVE FIVE THREE MARKS AND ONE HUNDRED ELEVEN POINT OH SIX YEN MONDAY JOHN E. CHAPMAN THIRTY EIGHT YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITIONS OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF GLASS OPTICAL FIBERS HE WAS ALSO ELECTED A DIRECTOR EXPANDING THE BOARD TO EIGHT MEMBERS HE WAS PREVIOUSLY SENIOR VICE PRESIDENT OF MANUFACTURING AND TECHNOLOGY INTEL CORPORATION SAID FOURTH QUARTER NET INCOME WAS UP THIRTY EIGHT PERCENT BUT SLIGHTLY BELOW FINANCIAL ANALYSTS' MEAN EXPECTATIONS IT CITED GREATER THAN USUAL COSTS OF STARTING UP SEVERAL NEW FACTORY LINES THAT WILL MAKE ITS LATEST MICROPROCESSORS THE SANTA CLARA CALIFORNIA CHIP MAKER SAID NET INCOME IN THE QUARTER ENDED DECEMBER TWENTY FIFTH WAS FIVE HUNDRED NINETY FOUR MILLION DOLLARS OR ONE DOLLAR AND THIRTY FIVE CENTS A SHARE COMPARED WITH FOUR HUNDRED TWENTY NINE MILLION DOLLARS OR NINETY NINE CENTS A SHARE A YEAR EARLIER ANALYSTS' MEAN ESTIMATE FOR PER SHARE NET INCOME WAS ONE DOLLAR AND FORTY ONE CENTS ACCORDING TO ZACKS INVESTMENT RESEARCH INCORPORATED INTEL'S REVENUE IN THE QUARTER REFLECTED CONTINUING STRONG GROWTH IN SALES OF ITS MICROPROCESSORS WHICH DOMINATE THE PERSONAL COMPUTER MARKET RISING TWENTY NINE PERCENT TO TWO POINT THREE NINE BILLION DOLLARS FROM ONE POINT EIGHT SIX BILLION DOLLARS INTEL SAID IN A RELEASE IT IS QUOTE ON TRACK QUOTE TO SHIP SEVERAL MILLION OF ITS NEW PENTIUM MICROPROCESSORS IN NINETEEN NINETY FOUR AS PART OF ITS DRIVE TO BEGIN MOVING P. C. USERS OVER TO THE NEW CHIP FROM ITS OLDER FOUR EIGHT SIX CHIPS INTEL HAS INVESTED HEAVILY IN FACTORIES TO PRODUCE THEM IN PARTICULAR COSTS WERE HIGHER THAN NORMAL FOR STARTING NEW LINES IN CALIFORNIA AND IRELAND TO PRODUCE PENTIUM CHIPS INTEL SAID BUT THOSE START UP EXPENSES WILL BEGIN PAYING BACK LATER THIS YEAR SAID ANALYST MILLARD PHELPS OF HAMBRECHT AND QUIST WHEN INTEL'S FACTORIES BEGIN PRODUCING LARGE VOLUMES OF PENTIUM CHIPS AND NEW VERSIONS OF FOUR HUNDRED EIGHTY SIXES WHICH WILL PROVIDE HIGHER PROFIT MARGINS THAN INTEL'S EXISTING LINEUP THE LONG TERM VIEW IS VERY SOLID FOR THEM BECAUSE OF INTEL'S HEAVY CAPITAL INVESTMENTS MR. PHELPS SAID FOR THE YEAR INTEL REPORTED THAT NET INCOME MORE THAN DOUBLED TO TWO POINT THREE OH BILLION DOLLARS OR FIVE DOLLARS AND TWENTY CENTS A SHARE FROM ONE POINT OH SEVEN BILLION DOLLARS OR TWO DOLLARS AND FORTY NINE CENTS A SHARE IN NINETEEN NINETY TWO REVENUE ROSE FIFTY PERCENT TO EIGHT POINT SEVEN EIGHT BILLION DOLLARS FROM FIVE POINT EIGHT FOUR BILLION DOLLARS THE YEAR EARLIER PER SHARE FIGURES WERE ADJUSTED FOR A TWO FOR ONE STOCK SPLIT PAID IN JUNE NINETEEN NINETY THREE INTEL'S STOCK CLOSED AT SIXTY SEVEN DOLLARS AND TWENTY FIVE CENTS A SHARE UP ONE DOLLAR IN NASDAQ STOCK MARKET TRADING THE COMPANY RELEASED ITS EARNINGS AFTER THE CLOSE OF TRADING YOU MAY NEVER HAVE HAD MORE REASON TO MISTRUST YOUR TRAVEL AGENT WITH LOW COST AIRLINES CUTTING FARES TRAVEL AGENTS CAN SAVE CUSTOMERS MONEY BUT ONLY BY SACRIFICING PART OF THEIR TEN PERCENT COMMISSION THUS TRAVELERS MUST BE PARTICULARLY DISCRIMINATING ABOUT WHO PLANS THEIR TRIPS BUT BECAUSE THE HERMETIC WORKINGS OF COMPUTER RESERVATION SYSTEMS ARE BEYOND THE KEN OF MOST FLIERS IT IS DIFFICULT FOR CLIENTS TO KNOW IF THEY ARE WELL SERVED QUOTE YOU COULD SPEND ALL YOUR LIFE CHECKING YOUR AGENT'S WORK BUT WHY WOULD YOU HIRE THEM IF YOU DIDN'T TRUST THEM QUOTE ASKS ROBERT ATCHISON CORPORATE TRAVEL MANAGER FOR APPLE COMPUTER INCORPORATED IN AUSTIN TEXAS STILL HE CONCEDES YOU CAN NEVER BE SURE YOU'RE GETTING THE LOWEST FARE FOR THEIR PART TRAVEL AGENCIES NOTE THAT THEY OPERATE ON RAZOR THIN MARGINS EVEN IN THE BEST OF TIMES SOME LOW FARE CARRIERS ARE A DOUBLE WHAMMY THEY GENERATE LESS COMMISSION REVENUE AND THEY REQUIRE MORE WORK BECAUSE THEY DON'T PARTICIPATE IN COMPUTER RESERVATION SYSTEMS AGENTS MUST CALL THEM IF FARES ARE CUT IN HALF THAT REPRESENTS A FIFTY PERCENT CUT IN COMMISSIONS SAYS DAVID PERELMAN PRESIDENT OF D. M. S. TRAVEL INCORPORATED IN NEW YORK IT'S A DISASTER BUT HIS AGENCY SEEKS OUT THE LOWEST FARES HE SAYS BECAUSE WITHOUT REPEAT CLIENTS IT COULDN'T STAY IN BUSINESS A. JENKINS AND ASSOCIATES MOUNTAINVIEW CALIFORNIA AUDITS TRAVEL AGENCIES FOR COMPANIES WHO WANT TO LEARN AMONG OTHER THINGS HOW OFTEN THEIR AGENCIES GET THEM THE LOWEST FARES THE AVERAGE ERROR RATE ON A MONTHLY AUDIT HAS RISEN TO FIFTEEN PERCENT FOR AIRLINE TRANSACTIONS COMPARED WITH SIX PERCENT THREE YEARS AGO SAYS ANDRE JENKINS THE FIRM'S DIRECTOR OF QUALITY THE AUDIT ITSELF PROBABLY UNDERSTATES THE ERRORS BECAUSE THE AGENCY KNOWS WHEN IT IS BEING REVIEWED AND PRESUMABLY TRIES TO MINIMIZE MISTAKES MANY TRAVEL AGENCIES NOW USE SOFTWARE THAT SUPPOSEDLY PLUCKS OUT THE LOWEST FARES BUT AUTOMATION CAN'T REPLACE TRAINING MR. JENKINS SAYS TRAINING IS PARTICULARLY CRUCIAL NOW BECAUSE COMPUTER RESERVATION SYSTEMS ARE SO COMPLEX AND BECOMING EVEN MORE SO DEVELOPED BY AIRLINES THESE SYSTEMS ARE WEBS OF INTERLOCKING DATABASES THAT CAN SPIN OUT INFORMATION ON FLIGHTS AND FARES BUT SIFTING THROUGH IT REQUIRES TIME AND SKILL TRAVEL AGENCY MANAGEMENTS TAKE PEOPLE OFF THE STREET PUT THEM IN FRONT OF A COMPUTER RESERVATION SYSTEM AND TELL THEM TO PUNCH A FEW BUTTONS MR. JENKINS SAYS AGENCY EXECUTIVES DISMISS SUGGESTIONS THAT THEIR INDUSTRY DENIES TRAVELERS THE LOWEST PRICES THE PRACTICE WOULD BE SELF DEFEATING THEY SAY BECAUSE AGENCIES NEED REPEAT BUSINESS TO SURVIVE WITH THIRTY TWO THOUSAND TWO HUNDRED RETAIL LOCATIONS NATIONWIDE TRAVELERS WHO DISCOVER THEY HAVE BEEN GOUGED OR EVEN THINK SO CAN EASILY GO ELSEWHERE NO AGENT IS GOING TO SELL HIS CLIENT DOWN THE RIVER FOR A FEW PIECES OF SILVER IT JUST DOESN'T MAKE BUSINESS SENSE SAYS PAUL RUDEN SENIOR VICE PRESIDENT OF THE AMERICAN SOCIETY OF TRAVEL AGENTS AGENTS SELL EIGHTY FIVE PERCENT OF ALL AIRLINE TICKETS AND DEPEND HEAVILY ON AIR TRAVEL FOR THEIR OWN REVENUE OVER THE YEARS LOW FARE OPPORTUNITIES GENERALLY WEREN'T AN ISSUE BECAUSE TICKET PRICES AMONG CARRIERS WERE SO SIMILAR BUT THAT IS CHANGING NOW THAT THE AIRLINE INDUSTRY HAS BEGUN TO SPLINTER INTO TWO CAMPS FULL SERVICE MAJORS AND LOW COST DISCOUNTERS WITH NO FRILLS SOUTHWEST AIRLINES PLUNGING INTO NEW MARKETS NEW REGIONAL OPERATORS LIKE VALUJET AIRLINES IN ATLANTA AND GRAYBEARDS LIKE CONTINENTAL AIRLINES INITIATING A LOW FARE SERVICE CALLED CALITE THERE IS MUCH LESS LOCK STEP PRICING CONSIDER THE CHICAGO NEWARK N. J. ROUTE A ROUND TRIP FARE COSTS ONE THOUSAND ONE HUNDRED TWENTY DOLLARS ON U. A. L. CORPORATION'S UNITED AIRLINES OR A. M. R. CORPORATION'S AMERICAN AIRLINES BUT KIWI INTERNATIONAL AIR LINES WHICH BEGAN OPERATIONS TWO YEARS AGO CHARGES TWO HUNDRED THIRTY EIGHT DOLLARS WHEN AN EMPLOYEE FROM INTERNATIONAL BUSINESS MACHINES CORPORATION IN CHICAGO ASKED HIS COMPANY'S TRAVEL AGENCY AMERICAN EXPRESS COMPANY TO BOOK HIM ON KIWI THE AGENT SAID NO BECAUSE KIWI DOESN'T ACCEPT THE AMERICAN EXPRESS CARD THE EMPLOYEE FLEW AMERICAN AIRLINES INSTEAD KIWI DOES ACCEPT THE AMERICAN EXPRESS CARD ROB KULAT A KIWI SPOKESMAN SAYS SOME TRAVEL AGENTS INCLUDING AMERICAN EXPRESS IN THIS CASE IGNORE KIWI BECAUSE THE AGENTS GET BONUSES FROM MAJOR CARRIERS THAT REWARD AGENTS WITH HIGHER COMMISSIONS FOR BOOKING TRAVELERS ON THOSE LARGE AIRLINES DESPITE KIWI'S LOW FARE PRODUCT MR. KULAT SAYS QUOTE AGENTS ARE STILL THE GATEKEEPERS TO THE INDUSTRY QUOTE CHRISTINE LEVITE A SPOKESWOMAN FOR AMERICAN EXPRESS SAYS IT'S AGAINST OUR POLICY TO GO OUTSIDE WHAT THE CLIENT REQUESTS IN THIS CASE IT SOUNDS LIKE THE AGENT MADE AN ERROR AMERICAN EXPRESS THE NATION'S LARGEST TRAVEL AGENCY WILL ONLY FAVOR PREFERRED SUPPLIERS IF THE CUSTOMER DOES NOT EXPRESS AN AIRLINE PREFERENCE MS. LEVITE SAYS WHILE LOW COST CARRIERS HAVE MADE INROADS AVERAGE DOMESTIC ROUND TRIP AIR FARES STILL INCREASED BY FIVE PERCENT LAST YEAR TO FIVE HUNDRED FIFTY FIVE DOLLARS COMPARED WITH YEAR AGO FIGURES ACCORDING TO TOPAZ ENTERPRISES INCORPORATED IN PORTLAND OREGON WHICH MONITORS PRICES BUT MANY AGENTS ARE UNDERSTANDABLY WORRIED THEY SAY IT COSTS THEM TWENTY FIVE DOLLARS TO THIRTY DOLLARS TO BOOK A TICKET WHICH IS MORE THAN THE COMMISSION THEY EARN ON LOW FARE FLIGHTS UNDER TWO HUNDRED FIFTY DOLLARS FOR A TICKET AND YOU'RE HURTING SAYS ROBERT THALER PRESIDENT OF SEA AND AIR TRAVEL INCORPORATED IN FAIRLAWN N. J. HE SAYS HE BOOKS CHEAP TICKETS BUT FINDS WAYS TO PARE SERVICE WHEN THE AGENT RECENTLY BOOKED A TWO FOR ONE SPECIAL FOR ONE HUNDRED TWENTY FIVE DOLLARS ON SOUTHWEST FOR A COUPLE IN SAN DIEGO HE TOLD HIS CLIENTS TO PICK UP THE TICKETS AT THE AIRPORT IT DIDN'T PAY FOR ME TO WRITE THE TICKETS AND MAIL IT OUT TO THEM MR. THALER SAYS INDEED PASSENGERS WHO HAVE BEEN SPOILED BY THEIR FRIENDLY AGENT SHOULD BRACE THEMSELVES FOR CHANGES IN SOME CASES AGENT SURCHARGES ARE ALREADY BEING ADDED ON LOW PRICED TICKETS ALICE LAMBIE OWNER OF APEX TRAVEL SERVICE IN THE MILWAUKEE AREA CHARGES CUSTOMERS TEN DOLLARS ON TICKETS UNDER ONE HUNDRED DOLLARS WITHOUT SUCH A CHARGE SHE SAYS VOLUME OF LOW PRICE TICKETS WILL DRIVE ME INTO THE GROUND AGENTS MAY ALSO START CHARGING FEES TO REBOOK TICKETS AND SOME ARE EVEN CONSIDERING REFUSING TO BOOK TICKETS ON LOW FARE CARRIERS ALTOGETHER QUOTE IF THE AIRLINE CAN FIGURE OUT A WAY TO OFFER A NINETY NINE DOLLAR FARE PROFITABLY THAT'S GOOD NEWS FOR THE AIRLINE AND GOOD NEWS FOR THE TRAVELER QUOTE SAYS STEVE GLENN PRESIDENT OF EXECUTIVE TRAVEL INCORPORATED IN LINCOLN NEBRASKA BUT IT'S THE AGENT WHO'S THE MOST VULNERABLE U. A. L. CORPORATION'S UNITED AIRLINES SAYS ITS NONRESTRICTED ROUND TRIP FARE BETWEEN CHICAGO AND NEWARK N. J. IS SIX HUNDRED EIGHTY TWO DOLLARS FOR MOST TRAVELERS AN ARTICLE YESTERDAY INCORRECTLY REPORTED THE FARE WAS ONE THOUSAND ONE HUNDRED TWENTY DOLLARS WHICH IS THE HIGHEST PUBLISHED FARE BUT NOT WHAT MOST TRAVELERS PAY C. M. X. ENERGY CORPORATION'S INDEPENDENT POWER UNIT C. M. X. GENERATION COMPANY IS BUILDING A FOUR HUNDRED TWENTY MILLION DOLLAR LIGNITE FIRED ENERGY PLANT IN INDIA TO PROVIDE TWO HUNDRED FIFTY MEGAWATTS OF ELECTRICAL POWER TO THE STATE OF TAMIL NADU CONSTRUCTION IS EXPECTED TO BEGIN LATER THIS YEAR WITH COMMERCIAL OPERATION TO START IN NINETEEN NINETY SEVEN C. M. X. GENERATION COMPANY WILL BE THE PROJECT MANAGER AND PLANT OPERATOR AND WILL HOLD A FORTY PERCENT OWNERSHIP INTEREST OTHER PARTNERS IN THE PROJECT INCLUDE S. T. POWER SYSTEMS ROCKVILLE MARYLAND AND NEYVELI LIGNITE CORPORATION NEYVELI INDIA THE INTERNATIONAL FINANCE CORPORATION WASHINGTON D. C. IS ALSO EXPECTED TO PARTICIPATE IN THE PROJECT U. S. BANCORP SAID IT REACHED A REVISED AGREEMENT TO ACQUIRE JOHNSTOWN SAVINGS BANK IN A CASH AND STOCK DEAL UNDER A COMPLEX FORMULA USBANCORP IN JOHNSTOWN PENNSYLVANIA SAID IT WILL PAY TEN DOLLARS AND THIRTEEN CENTS IN CASH AND A FRACTION OF ITS COMMON STOCK FOR EACH JOHNSTOWN SAVINGS' SHARE THE FRACTION WILL BE BASED ON A FORMULA RELATING TO THE AVERAGE CLOSING PRICE OF USBANCORP'S STOCK TEN DAYS BEFORE THE TRANSACTION CLOSES BASED ON THE AVERAGE CLOSING PRICE OVER THE PAST TEN DAYS THE TRANSACTION'S VALUE WOULD BE FORTY THREE POINT SIX MILLION DOLLARS OR TWENTY TWO DOLLARS AND FORTY EIGHT CENTS A SHARE JOHNSTOWN SAVINGS WHICH HAS THREE HUNDRED FIFTY FIVE MILLION DOLLARS IN ASSETS CAN TERMINATE THE AGREEMENT IF THE AVERAGE CLOSING PRICE OF USBANCORP IN THE TEN DAYS BEFORE THE CLOSING IS LESS THAN TWENTY DOLLARS AND FIFTY CENTS A SHARE JOHNSTOWN ALSO CAN SOLICIT OTHER BIDS UNTIL FEBRUARY SEVENTEENTH USBANCORP HAS ONE POINT TWO BILLION DOLLARS IN ASSETS BORLAND INTERNATIONAL INCORPORATED SCOTTS VALLEY CALIFORNIA REPORTED THIRD QUARTER PROFIT OF FOUR HUNDRED EIGHTEEN THOUSAND DOLLARS OR TWO CENTS A SHARE FALLING FAR SHORT OF ANALYSTS' AVERAGE ESTIMATES OF ABOUT ELEVEN CENTS THE SOFTWARE MAKER ATTRIBUTED THE RESULTS LARGELY TO LOWER SALES IN EUROPE OF ITS DBASE SOFTWARE AS CUSTOMERS HELD OFF PURCHASES IN ANTICIPATION OF A FORTHCOMING VERSION TAILORED FOR MICROSOFT CORPORATION'S WINDOWS OPERATING SYSTEM IN THE YEAR EARLIER PERIOD BORLAND HAD A LOSS OF SIXTY ONE POINT THREE MILLION DOLLARS OR TWO DOLLARS AND THIRTY FOUR CENTS A SHARE BECAUSE OF COSTS ASSOCIATED WITH LAYOFFS AND OTHER RESTRUCTURING CHARGES QUARTERLY SALES ROSE SEVEN POINT ONE PERCENT TO ONE HUNDRED ELEVEN POINT SEVEN MILLION DOLLARS FROM ONE HUNDRED FOUR POINT THREE MILLION DOLLARS A YEAR EARLIER PHILIPPE KAHN CHIEF EXECUTIVE OFFICER SAID BORLAND FOCUSED IN THE QUARTER ON GAINING MARKET SHARE AND HELPING CUSTOMERS QUOTE UPSIZE QUOTE THEIR COMPUTING TASKS FROM INDIVIDUAL PERSONAL COMPUTERS TO MACHINES CONNECTED IN SO CALLED CLIENT SERVER NETWORKS TRYING TO MAKE SENSE OF THE WITHDRAWAL BY DEFENSE NOMINEE BOBBY RAY INMAN YESTERDAY WE WERE REMINDED OF THE ODD ENCOUNTER THAT C. B. S.'S DAN RATHER HAD ON THE STREETS OF NEW YORK A FEW YEARS AGO MR. RATHER'S ASSAILANT ASKED THE BIZARRE QUESTION QUOTE KENNETH WHAT'S THE FREQUENCY QUOTE MR. INMAN'S EXPLANATIONS ARE SIMILARLY PERPLEXING BY NOW OF COURSE A CERTAIN LEVEL OF HIGH WIRE WEIRDNESS SEEMS TO BE ROUTINE IN THE CLINTON PRESIDENCY THIS ADMINISTRATION RARELY DOES A SWAN DIVE WHEN A TRIPLE BACKWARD SOMERSAULT WITH A TWIST CAN BE TRIED INSTEAD SO WE GET ATTORNEY GENERAL CANDIDATES WITH NANNY PROBLEMS DEATH DEFYING CONGRESSIONAL VOTES STONEWALLING ON A SUICIDE BUNGEE JUMPS INTO SOMALIA AND HAITI AND NOW A DEFENSE NOMINEE WHO ACCEPTS THE JOB BY PUBLICLY CONDESCENDING ABOUT HIS COMFORT LEVEL WITH THE PRESIDENT AND THEN LEAVES IT A MONTH LATER DEPLORING MODERN MCCARTHYISM LET US STIPULATE THAT MR. INMAN HAS A POINT THAT SOMETHING ROTTEN HAS HAPPENED TO THE NOMINATION PROCESS IN WASHINGTON THOUGH IT HARDLY STARTED WITH THE CLINTON YEARS THESE COLUMNS DEPLORED THE PERSONAL ATTACKS THAT WERE MADE AGAINST REAGAN NOMINEES AND WE'VE DONE THE SAME WHEN ETHICS TRIVIA HAS BEEN USED AGAINST CLINTON APPOINTEES THE FEMINIST NADERITE LIBERALS WERE THE ONES WHO WENT AFTER ZOE BAIRD WHILE WE DEFENDED HER AND THE SAME CROWD WANTED MR. INMAN TO SHED SOME BLOOD FOR HIS OWN NANNY TAX PROBLEMS MR. INMAN IS ALSO SURELY RIGHT THAT THE MEDIA ESPECIALLY WHEN IT HEADS OFF IN A PACK CAN TOO EASILY DISPARAGE OR DESTROY REPUTATIONS YET WHAT IS SO STRIKING ABOUT MR. INMAN'S COMPLAINT IS HOW MILD WERE THE CRITICISMS OF HIM COMPARED WITH THE STANDARDS SET OVER THE PAST TWELVE YEARS WHILE WE DON'T KNOW WHAT MIGHT HAVE EMERGED FROM CONGRESSIONAL HEARINGS OR MAY BE HIDDEN IN F. B. I. REPORTS MR. INMAN HIMSELF NOTED YESTERDAY THAT HE'D PROBABLY HAVE BEEN CONFIRMED BY THE SENATE ARMED SERVICES COMMITTEE BY A UNANIMOUS VOTE HIS REPUBLICAN ENDORSERS INCLUDED BY HIS OWN ACCOUNT DICK CHENEY AND BOB GATES AND SENATORS JOHN WARNER JOHN MCCAIN AND KAY HUTCHISON THIS IS A LOT BETTER THAN JOHN TOWER EVER DID AMONG DEMOCRATS THESE REPUBLICAN ENDORSEMENTS MAKE MR. INMAN'S ATTACK ON BOB DOLE ESPECIALLY PUZZLING MR. INMAN SAYS HE HEARD INDICATIONS FROM FRIENDS ON THE REPUBLICAN SIDE OF THE AISLE THAT MR. DOLE HAD TARGETED HIM BUT HE OFFERS NO EVIDENCE IN PUBLIC MR. DOLE HAD ACTUALLY PRAISED HIM AS A QUOTE VERY GOOD PERSON FOR THE JOB QUOTE THOUGH HE DID QUIP THAT MAYBE MR. INMAN WAS A QUOTE GERGEN REPUBLICAN QUOTE AND WOULD HAVE TO ANSWER SOME QUOTE TOUGH QUESTIONS QUOTE ABOUT HIS BUSINESS DEALINGS FOR HIS PART MR. DOLE RESPONDED YESTERDAY THAT I HAVE NO IDEA WHAT'S GOTTEN INTO BOBBY INMAN MR. INMAN'S STORY BECOMES ONE HUNDRED PERCENT WEIRD HOWEVER WHEN IT LINKS MR. DOLE TO NEW YORK TIMES COLUMNIST WILLIAM SAFIRE IN A CONSPIRACY CITING UNSPECIFIED REPORTS MR. INMAN ALLEGES A TRADE BETWEEN MR. SAFIRE AND SENATOR DOLE THAT IF SENATOR DOLE WOULD TURN UP THE HEAT ON MY NOMINATION THAT SAFIRE WOULD TURN UP THE HEAT ON WHITEWATER DEVELOPMENT BUT MR. DOLE HARDLY NEEDED ANYONE TO RAISE SUSPICIONS SINCE THE WHITE HOUSE HAS BEEN DOING SUCH A GOOD JOB ALL BY ITSELF INDEED ONE LOGICAL EXPLANATION OF MR. INMAN'S WITHDRAWAL IS THAT HE DECIDED THAT THE CLINTON ADMINISTRATION WAS A SHIP TAKING ON TOO MUCH WHITEWATER AND WHILE MR. SAFIRE DID GIVE MR. INMAN A ROUGH TIME IN PRINT THAT CRITIQUE WAS BALANCED BY A GENERALLY FAWNING RECEPTION ON CAPITOL HILL AND POSITIVE ASSESSMENTS ELSEWHERE IN THE PRESS IT IS NOT AS IF REPORTERS SEARCHED HIS VIDEO RENTALS AS THEY DID ROBERT BORK'S THE SAFIRE DOLE CONSPIRACY THEORY REMINDS US OF WHAT IT WAS LIKE TO BE ACCUSED OF MURDERING VINCENT FOSTER THIS LOOKS LIKE A SIMILAR ATTEMPT TO DIVERT ATTENTION FROM OTHER POSSIBLE MOTIVES FOR MR. INMAN'S WITHDRAWAL WE DON'T PRETEND TO KNOW WHAT THOSE MOTIVES MIGHT BE BUT HIS EXPLANATIONS SO FAR ONLY DEEPEN THE MYSTERY THE PROBLEM FOR THE COUNTRY IS THAT AN IMPORTANT JOB AT DEFENSE REMAINS UNFILLED AT AN IMPORTANT TIME THE SHAKEOUT IN MR. CLINTON'S NATIONAL SECURITY TEAM HAS BEEN UNPARALLELED FOR ANY RECENT PRESIDENT'S FIRST YEAR A FACT THAT GETS NOTICED IN DANGEROUS PLACES LIKE NORTH KOREA MR. CLINTON COULD PLUG THIS LEAKING IMAGE WITH A DEFENSE CHOICE LIKE JAMES WOOLSEY WHO GETS HIGH MARKS AS C. I. A. DIRECTOR BUT SINCE THAT IS THE SIMPLE SENSIBLE CHOICE WE SUPPOSE IT WOULD BE TOO EASY FOR THIS TANGLED PRESIDENCY THE CURRENT ATTEMPT BY FEDERATED DEPARTMENT STORES TO ACQUIRE R. H. MACY AND COMPANY IN BANKRUPTCY AND THEREBY WIN THE RIGHT TO FILE A REORGANIZATION PLAN OF ITS OWN HAS HIGHLIGHTED THE INADEQUACIES OF CHAPTER ELEVEN INCUMBENT MANAGEMENT'S ABILITY TO CONTROL THE AGENDA IN CHAPTER ELEVEN IS A REAL PROBLEM DISCUSSED IN THE ARTICLE THAT APPEARS ABOVE BUT CHAPTER ELEVEN HAS OTHER PROBLEMS TOO CHAPTER ELEVEN MIXES TWO DECISIONS FIRST WHAT SHOULD HAPPEN TO A BANKRUPT COMPANY SHOULD IT BE REORGANIZED SOLD OR LIQUIDATED SECOND HOW SHOULD THE COMPANY'S VALUE BE DIVIDED AMONG VARIOUS CREDITOR CLASSES AND SHAREHOLDERS THIS MIXING OF DECISIONS LEADS TO A GREAT DEAL OF SQUABBLING AND MAKES CHAPTER ELEVEN VERY SLOW THE LARGEST BANKRUPTCY CASES TAKE AN AVERAGE OF TWO TO THREE YEARS THIS DELAY IS EXPENSIVE IN LEGAL FEES AND ADMINISTRATIVE COSTS AND CAN ALSO CAUSE A DECLINE IN A COMPANY'S VALUE EASTERN AIRLINES SUFFERED LOSSES OF ABOUT ONE POINT SIX BILLION DOLLARS IN CHAPTER ELEVEN BEFORE EVENTUALLY BEING LIQUIDATED CHAPTER ELEVEN HAS THE LAUDABLE GOAL OF PRESERVING HEALTHY COMPANIES BUT THERE IS A WAY TO ACHIEVE THAT GOAL WITHOUT INCURRING CHAPTER ELEVEN'S COSTS TOGETHER WITH PHILIPPE AGHION OF OXFORD AND JOHN MOORE OF THE LONDON SCHOOL OF ECONOMICS I HAVE PROPOSED THE FOLLOWING MARKET BASED ALTERNATIVE TO CHAPTER ELEVEN ACCORDING TO THIS PROPOSAL WHEN A COMPANY GOES BANKRUPT IT IS PUT UP FOR AUCTION HOWEVER IN CONTRAST TO A STANDARD AUCTION BIDDERS CAN MAKE NONCASH BIDS AS WELL AS CASH BIDS WITH A NONCASH BID A BIDDER OFFERS TO BUY THE COMPANY USING AS PAYMENT SECURITIES IN THE POST BANKRUPTCY COMPANY A NONCASH BID THEREFORE ALLOWS FOR THE POSSIBILITY OF REORGANIZATION SUPPOSE INCUMBENT MANAGEMENT BELIEVES THEY ARE THE BEST PEOPLE TO RUN THE COMPANY THEY WANT TO RETAIN THEIR JOBS BUT DO NOT HAVE THE CASH TO BUY THE COMPANY OUTRIGHT UNDER OUR PROPOSAL THEY COULD BID BY OFFERING SHARES IN THE POST BANKRUPTCY COMPANY ANOTHER POSSIBILITY WOULD BE FOR INCUMBENT MANAGEMENT TO MAKE A BID COMPRISING CASH AND SHARES WHERE THE CASH IS RAISED BY BORROWING AGAINST THE COMPANY'S FUTURE PROFIT AN OUTSIDE MANAGEMENT TEAM SUCH AS FEDERATED COULD MAKE THE SAME KINDS OF BIDS AND OF COURSE ANYONE IS FREE TO MAKE A PURELY CASH BID THE DIFFICULTY IN EVALUATING THESE BIDS IS THAT THEY ARE APPLES AND ORANGES HOW DOES ONE COMPARE A CASH BID TO A NONCASH BID OR ONE NONCASH BID TO ANOTHER THE ANSWER IS TO TRANSFORM THE FORMER CREDITORS INTO SHAREHOLDERS VIA A DEBT EQUITY SWAP AND THEN LET THEM VOTE ON THE BIDS ONE WAY TO CARRY OUT THIS SWAP IS TO GIVE ALL THE SHARES INITIALLY TO SENIOR CREDITORS HOWEVER JUNIOR CREDITORS AND SHAREHOLDERS DON'T GO AWAY EMPTY HANDED AFTER THE BIDS ARE ANNOUNCED JUNIOR CREDITORS HAVE THE RIGHT TO BUY OUT THE SENIOR CREDITORS FOR THE PRO RATA AMOUNT THE SENIOR CREDITORS ARE OWED SIMILARLY FORMER SHAREHOLDERS HAVE THE RIGHT TO BUY THEIR SHARES BACK FOR THE PRO RATA AMOUNT ALL CREDITORS ARE OWED THE MERIT OF THIS SCHEME IS THAT IT PRESERVES THE SENIORITY OF CLAIMS WITHOUT REQUIRING AN EXTERNAL VALUATION OF THE COMPANY ONCE THE DEBT EQUITY SWAP HAS BEEN COMPLETED THE NEW SHAREHOLDERS VOTE ON WHICH BID TO ACCEPT IF THE VOTE GOES IN FAVOR OF A CASH BID THE COMPANY IS IN EFFECT LIQUIDATED OR SOLD IF A NONCASH BID WINS THEN THE COMPANY IS IN EFFECT REORGANIZED INDEPENDENT EXPERTS COULD EVALUATE THE BIDS BUT THEIR RECOMMENDATIONS WOULDN'T BE BINDING THE WHOLE PROCESS MIGHT TAKE AROUND FOUR MONTHS THREE MONTHS FOR BIDS TO COME IN AND ONE MONTH FOR RIGHTS TO BE EXERCISED AND THE VOTE TAKEN THIS MAY BE TOO QUICK TO SETTLE ALL CLAIMS DISPUTES BUT THE REMAINDER CAN BE RESOLVED AFTER THE COMPANY HAS EMERGED FROM BANKRUPTCY THE ADVANTAGE OF OUR PROPOSAL IS THAT IT LEAVES THE DECISION OVER THE COMPANY'S FUTURE WHETHER TO LIQUIDATE SELL OR REORGANIZE AND IF REORGANIZE WHO THE NEW MANAGEMENT TEAM SHOULD BE IN THE HANDS OF THE NEW OWNERS AND AT THE MOMENT OF THE VOTE THESE OWNERS' INTERESTS ARE ALIGNED SINCE THEY ARE ALL SHAREHOLDERS THERE IS NO SQUABBLING OVER THE DIVISION OF THE COMPANY'S VALUE SINCE THE PROCEDURE DETERMINES THIS MECHANICALLY THROUGH THE AUTOMATIC DEBT EQUITY SWAP LIKE CHAPTER ELEVEN OUR PROCEDURE GIVES CLAIMHOLDERS THE OPTION OF MAINTAINING THE COMPANY AS A GOING CONCERN IF THE COMPANY'S BAD FORTUNES ARE THE RESULT OF BAD LUCK RATHER THAN BAD MANAGEMENT UNLIKE CHAPTER ELEVEN THE PROCEDURE IS CHEAP QUICK AND AVOIDS CONFLICTS OF INTEREST ALSO THE PROCEDURE ISN'T BIASED IN FAVOR OF INCUMBENT MANAGEMENT IT WOULD ALLOW FEDERATED TO MAKE A BID FOR MACY'S DIRECTLY WITHOUT HAVING TO BUY MACY'S DEBT FIRST MACY'S NEXT MANAGEMENT TEAM WOULD THEN BE DECIDED BY A SIMPLE VOTE MR. HART IS A PROFESSOR OF ECONOMICS AT HARVARD UNIVERSITY THIS ARTICLE REFLECTS SOME MATERIAL COVERED IN THE OCTOBER NINETEEN NINETY TWO ISSUE OF JOURNAL OF LAW ECONOMICS AND ORGANIZATION IN A SETTLEMENT WITH TEXAS REGULATORS PRUDENTIAL SECURITIES INCORPORATED AGREED TO BE TEMPORARILY SUSPENDED FROM OPENING UP NEW BROKERAGE ACCOUNTS IN TEXAS AND TO PAY THE STATE ONE POINT FIVE MILLION DOLLARS THE UNUSUAL ACCORD WHICH FOLLOWS A SIX MONTH INVESTIGATION BY TEXAS INTO THE PARTNERSHIP SALES PRACTICES OF PRUDENTIAL'S MOST TROUBLESOME BRANCHES MARKS ONE OF THE RARE TIMES REGULATORS HAVE SUSPENDED NEW BUSINESS ACTIVITY OF A MAJOR BROKERAGE FIRM THE SETTLEMENT CAPS A BROAD INVESTIGATION BY FEDERAL AND STATE REGULATORS INTO ALLEGATIONS OF IMPROPER PARTNERSHIP SALES AT PRUDENTIAL TEXAS WAS THE ONLY STATE THAT DIDN'T PARTICIPATE IN PRUDENTIAL'S OCTOBER SETTLEMENT OF FRAUD CHARGES BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION AND FORTY NINE STATE REGULATORS IN THAT ACCORD PRUDENTIAL AGREED TO PAY EACH OF THE STATES FIVE HUNDRED THOUSAND DOLLARS IN ADDITION TO SETTING UP A REPARATIONS FUND FOR INVESTORS OF AT LEAST THREE HUNDRED THIRTY MILLION DOLLARS WITHOUT ADMITTING OR DENYING WRONGDOING QUOTE THE KEY MESSAGE HERE IS THAT MAJOR WALL STREET FIRMS WILL BE TREATED IN THE SAME FASHION AS SMALLER BROKERAGE HOUSES QUOTE DENISE VOIGT CRAWFORD TEXAS SECURITIES COMMISSIONER SAID IN AN INTERVIEW PRUDENTIAL THE NATION'S FOURTH LARGEST SECURITIES FIRM STILL FACES INVESTIGATIONS OF CURRENT AND FORMER EXECUTIVES BY THE S. E. C. AND THE MANHATTAN AND DALLAS U. S. ATTORNEYS' OFFICES AS WELL AS TEXAS AND OTHER STATE SECURITIES REGULATORS PRUDENTIAL A UNIT OF PRUDENTIAL INSURANCE COMPANY OF AMERICA AGREED TO THE TEXAS SETTLEMENT WITHOUT ADMITTING TO OR DENYING THE ALLEGATIONS THE SETTLEMENT DISCUSSIONS WERE CONTENTIOUS PARTLY BECAUSE TEXAS REGULATORS WERE DEMANDING THE TEMPORARY SUSPENSION OF BUSINESS PEOPLE FAMILIAR WITH THE MATTER SAY THE ONE POINT FIVE MILLION DOLLAR PAYMENT INCLUDES FIVE HUNDRED THOUSAND DOLLARS AS PART OF THE BROADER FEDERAL AND STATE REGULATORY SETTLEMENT WHILE THIS AGREEMENT IMPOSES SOME STRINGENT SANCTIONS FOR PAST PRACTICES THE FIRM'S DAY TO DAY BUSINESS ACTIVITIES WITH ITS MORE THAN NINETY THOUSAND TEXAS ACCOUNTS WILL NOT BE AFFECTED HARDWICK SIMMONS PRUDENTIAL SECURITIES PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID MOST IMPORTANTLY THIS AGREEMENT WITH TEXAS MEANS ALL FIFTY STATES ARE NOW PARTIES TO OUR GLOBAL SETTLEMENT AND ALLOWS US TO MOVE FORWARD WITH THE BUSINESS OF THE FIRM PRUDENTIAL ALSO SAID THAT THE DALLAS DISTRICT ATTORNEY'S OFFICE HAS SAID IT WILL NOT PURSUE THE FIRM AS PART OF A SEPARATE INVESTIGATION INTO PRUDENTIAL'S PARTNERSHIP PRACTICES HOWEVER THE FIRM WILL CONTINUE TO WORK CLOSELY WITH THE DISTRICT ATTORNEY'S OFFICE CONCERNING THAT OFFICE'S INQUIRIES INTO THE ACTIVITIES OF FORMER EMPLOYEES UNDER THE SETTLEMENT PRUDENTIAL AGREED TO BE SUSPENDED FROM SOLICITING OFFERING OR SELLING SECURITIES IN INTO OR FROM THE STATE OF TEXAS TO NEW CUSTOMERS FOR A PERIOD OF FIVE CONSECUTIVE BUSINESS DAYS THE ACCORD ALSO PREVENTS PRUDENTIAL'S NORTH DALLAS BRANCH OFFICE FROM ENGAGING IN THE SAME ACTIVITIES FOR TWENTY BUSINESS DAYS PRUDENTIAL SAID THE TWO PERIODS WILL RUN CONCURRENTLY STARTING JANUARY THIRTY FIRST IT IS EXTREMELY UNUSUAL FOR REGULATORS TO ISSUE ORDERS RESTRICTING CUSTOMER ACTIVITY AT BROKERAGE FIRMS LAST YEAR FOUR PAINEWEBBER GROUP INCORPORATED BRANCHES WEREN'T ALLOWED TO OPEN ANY NEW BROKERAGE ACCOUNTS FOR ONE MONTH UNDER A SETTLEMENT WITH THE S. E. C. IT WASN'T SURPRISING THAT TEXAS DECIDED TO PURSUE ITS OWN CASE AGAINST PRUDENTIAL THE DALLAS BRANCH WAS AMONG THE BIGGEST SELLERS OF PARTNERSHIPS IN THE NATION BROKERS THERE HAVE BEEN ACCUSED OF AMONG OTHER THINGS UNAUTHORIZED TRADING UNSUITABLE TRADING AND CHURNING OR TRADING SECURITIES TO GENERATE EXCESS COMMISSIONS THE TEXAS SETTLEMENT QUOTE IS PROBABLY JUSTIFIED BY THE FACT THAT WHAT EXISTED THERE REPRESENTED A MICROCOSM OF THE ARRAY OF PROBLEMS FACING THE FIRM IN OTHER PLACES THROUGHOUT THE COUNTRY QUOTE SAID J. BOYD PAGE AN ATTORNEY IN ATLANTA REPRESENTING CLIENTS WITH CLAIMS AGAINST PRUDENTIAL IMPROPER ACTIVITIES AT PRUDENTIAL'S NORTH DALLAS OFFICE HAVE COST INVESTORS MILLIONS OF DOLLARS PEOPLE FAMILIAR WITH THE CASE SAID IN THE OCTOBER CIVIL COMPLAINT FILED BY THE S. E. C. THE AGENCY ACCUSED PRUDENTIAL OF FAILING TO REASONABLY SUPERVISE TWO OF THE FIRM'S TOP PRODUCERS EMPLOYED IN THE DALLAS OFFICE THE AGENCY'S SETTLEMENT ORDER CITED ONE BROKER IN THE DALLAS BRANCH OFFICE IDENTIFIED AS J. FREDERIC STORASKA BY PEOPLE FAMILIAR WITH THE MATTER FOR OPERATING HIS OWN DEPARTMENT WITHIN THE OFFICE WHERE HE ENGAGED IN TRADING IN CUSTOMER ACCOUNTS WITHOUT THEIR AUTHORIZATION ENTERING LARGE PURCHASE ORDERS FOR LIMITED PARTNERSHIPS IN THE ACCOUNTS OF CERTAIN CLIENTS AT THE END OF EACH MONTH MR. STORASKA HAS DENIED WRONGDOING AS PART OF THE TEXAS ACCORD PRUDENTIAL AGREED TO LAUNCH A FORMAL EDUCATIONAL PROGRAM FOR ITS BROKERS TO PREVENT FURTHER SECURITIES VIOLATIONS MAKE DETAILED QUARTERLY REPORTS TO THE TEXAS COMMISSIONER ON THE PROGRAM AND COOPERATE WITH THE STATE IN ITS CONTINUING INVESTIGATION OF BROKERS ANY VIOLATION OF THE TEXAS ORDER OR THE BROADER FEDERAL AND STATE SETTLEMENT WITHIN TWO YEARS WOULD CONSTITUTE GROUNDS FOR THE FILING OF A CIVIL ADMINISTRATIVE ACTION THAT COULD CAUSE PRUDENTIAL'S BROKER LICENSE TO BE REVOKED IN TEXAS REGULATORS SAID UNITED PARCEL SERVICE OF AMERICA INCORPORATED SAID IT SET RECORD VOLUMES IN ITS U. S. AIR DELIVERY BUSINESS IN DECEMBER HANDLING AN AVERAGE OF ONE MILLION THREE HUNDRED SEVENTY THOUSAND PACKAGES AND DOCUMENTS A DAY THE CLOSELY HELD PACKAGE DELIVERY CONCERN ALSO SAID IT EXPECTS TO REPORT REVENUE OF ABOUT SEVENTEEN POINT FIVE BILLION DOLLARS FOR NINETEEN NINETY THREE COMPARED WITH SIXTEEN POINT FIVE BILLION DOLLARS IN NINETEEN NINETY TWO A SPOKESMAN ADDED THAT THE COMPANY EXPECTS NINETEEN NINETY THREE PROFIT TO EXCEED NINETEEN NINETY TWO'S EARNINGS OF SEVEN HUNDRED SIXTY FIVE MILLION DOLLARS ATLANTA BASED U. P. S. WHICH HAS BEEN PUSHING AGGRESSIVELY INTO AIR EXPRESS INTERNATIONAL DELIVERY AND CORPORATE ACCOUNTS SAID IT SET A ONE DAY AIR VOLUME RECORD ON DECEMBER TWENTY FIRST HANDLING TWO MILLION NINE HUNDRED FIFTY THOUSAND PACKAGES INTERNATIONAL AIR VOLUME SHOT UP THIRTY FOUR PERCENT IN THE FOURTH QUARTER FROM THE YEAREARLIER PERIOD ALTHOUGH THE COMPANY SAID PRICING WAS ONLY ONE FACTOR IN THE STRONG PERFORMANCE ANALYSTS SAID U. P. S.'S RECENT DISCOUNTING ON CORPORATE ACCOUNTS PLAYED A BIG PART IN THE GROWTH A SECOND KEY REFORMER IS CLOSE TO RESIGNING FROM THE RUSSIAN GOVERNMENT RAISING SERIOUS QUESTIONS ABOUT MOSCOW'S COMMITMENT TO PURSUING RADICAL FREE MARKET REFORMS BORIS FYODOROV MINISTER OF FINANCE AND PERHAPS RUSSIA'S MOST EFFECTIVE REFORM STRATEGIST SAID TUESDAY THAT HE WON'T STAY ON AS FINANCE MINISTER IN THE NEW CABINET THAT PRIME MINISTER VIKTOR CHERNOMYRDIN NOW IS ASSEMBLING ACCORDING TO RUSSIAN PRESS REPORTS SINCE HIS RESIGNATION WASN'T FORMALLY SUBMITTED OR ACCEPTED THERE IS A CHANCE FOR A LAST MINUTE REVERSAL BUT MR. FYODOROV HAS SET CONDITIONS FOR REMAINING IN THE CABINET THAT MR. CHERNOMYRDIN ISN'T LIKELY TO MEET INCLUDING THE FIRING OF RUSSIA'S CENTRAL BANK CHAIRMAN INDEED THE FINANCE MINISTER'S RESIGNATION WAS WIDELY VIEWED AS A DONE DEAL IN THE HALLS OF PARLIAMENT IF HE DOES BOW OUT IT WOULD BE AN EVEN MORE DAMAGING BLOW TO RUSSIA'S REFORM DRIVE THAN VICE PREMIER YEGOR GAIDAR'S RESIGNATION ANNOUNCED SUNDAY MR. GAIDAR THE ARCHITECT OF RUSSIA'S FREE MARKET CHANGES HAD SEEN HIS AUTHORITY ECLIPSED IN RECENT MONTHS BUT MR. FYODOROV HAD BEEN MORE ACTIVE OPENLY FIGHTING TO CUT RUSSIA'S BUDGET DEFICIT SLASH DUBIOUS SUBSIDIES TO STATE INDUSTRIES AND CONTROL INFLATION QUOTE GAIDAR WAS MORE OF A DECORATIVE FIGURE QUOTE SAID GRIGORY YAVLINSKY A REFORMIST ECONOMIST AND PARLIAMENTARIAN WHO HAS LONG BEEN A CRITIC OF MR. GAIDAR BUT FYODOROV WAS REALLY TRYING TO BUILD A WALL AGAINST INFLATION THIS MEANS A BIG STEP BACKWARD FOR REFORMS SAID VIKTOR DAVYDKIN A LIBERAL MEMBER OF PARLIAMENT FROM VORONEZH IF THE CABINET LINEUP ADDS UP TO A SETBACK FOR REFORM THE VICTOR MAY BE PRIME MINISTER CHERNOMYRDIN A GO SLOW TECHNOCRAT WHO SUCCEEDED MR. GAIDAR AS PREMIER A YEAR AGO MR. CHERNOMYRDIN APPARENTLY WITH PRESIDENT BORIS YELTSIN'S BACKING IS SETTING A MORE GRADUAL COURSE FOR RUSSIA'S REFORMS WHICH NEITHER MR. GAIDAR NOR MR. FYODOROV ARE PREPARED TO SUPPORT SOME PEOPLE EVEN SEE THE BEGINNING OF THE CHERNOMYRDIN ERA OF RUSSIAN POLITICS THE JOWLY FORMER HEAD OF THE STATE GAS MONOPOLY IS THOUGHT TO BE GUNNING FOR MR. YELTSIN'S JOB WHEN THE PRESIDENT'S TERM EXPIRES TWO YEARS FROM NOW BUT THAT RESPONSIBILITY ALSO CARRIES A RISK NO POLICY INCLUDING MR. CHERNOMYRDIN'S SLOW REFORM APPROACH IS LIKELY TO EASE RUSSIA'S ECONOMIC SLUMP ANYTIME SOON IF RUSSIANS BECOME FURTHER DISILLUSIONED MR. CHERNOMYRDIN MIGHT HAVE TO PAY WITH HIS JOB MR. YELTSIN'S ROLE IN THE CABINET SHUFFLE IS SOMETHING OF A MYSTERY HE ACCEPTED MR. GAIDAR'S RESIGNATION WITHOUT MUCH OF A FIGHT IT ISN'T CLEAR WHERE HE STANDS ON MR. FYODOROV THE PRESIDENT MET WITH MR. CHERNOMYRDIN FOR MUCH OF YESTERDAY TO HASH OUT THE FINAL COMPOSITION OF THE NEW CABINET BUT NO ANNOUNCEMENT WAS MADE YELTSIN BELIEVES THAT CHERNOMYRDIN HAS A MAGIC RECIPE FOR KEEPING THINGS STABLE SAYS MIKHAIL POLTORANIN A PARLIAMENTARY DEPUTY AND A CLOSE ALLY OF MR. YELTSIN YELTSIN IS DISTANCING HIMSELF FROM THE DEMOCRATIC MOVEMENT AND REFORMERS THE ANTI YELTSIN CAMP NOT SURPRISINGLY CHEERED THE DEPARTURES VLADIMIR ZHIRINOVSKY THE ULTRANATIONALIST WHO ROSE TO PROMINENCE IN LAST MONTH'S PARLIAMENTARY ELECTIONS CROWED TO JOURNALISTS THAT TWO OF THE FOUR MINISTERS HE HAS PUBLICLY OPPOSED WERE GONE QUOTE NOW IF WE GET RID OF CHUBAIS AND KOZYREV WE'LL HAVE A VERY GOOD GOVERNMENT QUOTE HE SAID ANATOLY CHUBAIS IS FROWNED UPON BY THE ZHIRNOVSKY CAMP BECAUSE HE IS THE PRIVATIZATION CHIEF RUSSIAN NATIONALISTS VIEW ANDREI KOZYREV RUSSIA'S FOREIGN MINISTER AS TOO PRO WEST IF MR. FYODOROV DOES GO MR. CHUBAIS WILL BE THE ONLY PROMINENT REFORMER LEFT IN THE RUSSIAN CABINET HE HAS DECIDED TO REMAIN IN THE GOVERNMENT TO CONTINUE EFFORTS TO SPEED THE PRIVATIZATION OF STATE INDUSTRIES BUT IT ISN'T CLEAR HOW EFFECTIVE HE WOULD BE WORKING IN NEAR ISOLATION WORD OF THE RESIGNATIONS SENT SHOCK WAVES THROUGH RUSSIA'S FINANCIAL MARKETS AFTER SEVERAL MONTHS OF RELATIVE STABILITY THE RUBLE HAS FALLEN PRECIPITOUSLY AGAINST THE DOLLAR FOR TWO STRAIGHT DAYS IN TRADING ON THE OFFICIAL MOSCOW INTERBANK EXCHANGE YESTERDAY THE RUBLE FELL TO ONE THOUSAND FIVE HUNDRED FOUR TO THE DOLLAR FROM ONE THOUSAND FOUR HUNDRED TWO MONDAY ON FRIDAY IT CLOSED AT ONE THOUSAND THREE HUNDRED FIFTY SIX ADDING TO THE FINANCIAL JITTERS ARE SIGNS THAT INFLATION IS SPINNING OUT OF CONTROL RUSSIA BROUGHT INFLATION DOWN TO TWELVE PERCENT A MONTH IN DECEMBER FROM THIRTY PERCENT A MONTH EARLIER LAST YEAR BUT WITH THE GOVERNMENT CONTINUING TO HAND OUT CHEAP CREDITS TO ITS WEAK INDUSTRIAL AND AGRICULTURAL SECTORS FEARS OF HYPERINFLATION HAVE RETURNED MR. YAVLINSKY THE ECONOMIST ESTIMATES THAT THE INFLATION RATE ALREADY IS BACK UP TO ABOUT ONE PERCENT A DAY MESSRS GAIDAR AND FYODOROV ARE EXPECTED TO REMAIN ACTIVE IN POLITICS PERHAPS AS VOCAL CRITICS OF MR. YELTSIN'S GOVERNMENT BOTH ARE MEMBERS OF PARLIAMENT IN THE STATE DUMA RUSSIA'S NEW LOWER HOUSE WHEN MR. GAIDAR RESIGNED HE TOLD REPORTERS I CANNOT BE IN THE GOVERNMENT AND IN OPPOSITION TO IT AT THE SAME TIME MR. FYODOROV FOR HIS PART DROPPED OUT OF PUBLIC VIEW YESTERDAY ON MONDAY HE ANNOUNCED CONDITIONS FOR STAYING IN THE CABINET INCLUDING THE OUSTER OF CENTRAL BANK CHAIRMAN VIKTOR GERASHCHENKO AND A CONSERVATIVE VICE PREMIER ALEXANDER ZAVERYUKHA THE PRIME MINISTER HAS REFUSED TO FIRE THEM ADDING TO SPECULATION THAT MR. FYODOROV WOULD RESIGN WHILE U. S. OFFICIALS EXPRESSED CONCERN ABOUT THE REFORMERS' THINNING RANKS THEY WERE PERHAPS MORE SHAKEN BY REMARKS MADE BY FOREIGN MINISTER KOZYREV SUGGESTING THAT SOME RUSSIAN TROOPS SHOULD REMAIN IN THE BALTIC REPUBLICS PRESIDENT CLINTON HAS PRESSED MOSCOW TO GET ITS TROOPS OUT OF THE BALTICS THIS YEAR AND U. S. OFFICIALS BELIEVED THEY'D MADE CONSIDERABLE PROGRESS ON THE ISSUE DURING LAST WEEK'S SUMMIT MEETING THE COMMENTS ARE CERTAINLY AT ODDS WITH STATEMENTS SIGNED BY PRESIDENT YELTSIN IN MOSCOW AND CERTAINLY AT ODDS WITH THINGS THAT WE'VE BEEN TOLD BY HIGH OFFICIALS OF THE RUSSIAN GOVERNMENT IN OUR MEETINGS IN MOSCOW AND PRIOR TO MOSCOW STATE DEPARTMENT SPOKESMAN MIKE MCCURRY SAID ANOTHER SENIOR OFFICIAL SUGGESTED THAT MR. KOZYREV A FAVORITE TARGET OF RUSSIAN NATIONALISTS MIGHT BE PLAYING POLITICS BUT IF SO WE'RE NOT HAPPY ABOUT IT KIPTON C. KUMLER FIFTY THREE YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF THE COMPANY'S FLUID PURIFICATION SYSTEMS GROUP HE WAS PRESIDENT AND CHIEF EXECUTIVE OF LEXINGTON CONSULTING GROUP INCORPORATED AND REMAINS A DIRECTOR OF COMMERCIAL INTERTECH WHICH ALSO MAKES HYDRAULIC COMPONENTS AND METAL PRODUCTS HE SUCCEEDS THOMAS N. BIRD FIFTY WHO WAS PUT ON SPECIAL ASSIGNMENT WITH CORPORATE STAFF WORKING ON INTERNATIONAL MARKETING WILLIAM LINSKI FORTY SEVEN YEARS OLD FORMERLY VICE PRESIDENT OF OPERATIONS FOR THE FABRICATED WHEELS BUSINESS OF THIS AUTO SUPPLIER WAS NAMED TO THE NEWLY CREATED POSITION OF PRESIDENT OF THE SAME BUSINESS UNIT TERRY SCHOENING SQUEEZES THROUGH THE DOORWAY OF THE BOONE AND CROCKETT CLUB'S HEADQUARTERS HERE WITH AN ENORMOUS RACK OF MULE DEER ANTLERS AND A QUESTION MR. SCHOENING A THIRTY FOUR YEAR OLD RANCHER FROM DRUMMOND MONTANA SAYS HE HAS SPENT CONSIDERABLE TIME CONTEMPLATING THE ANIMAL'S HEADGEAR AND FINALLY COULDN'T STAND IT ANY LONGER ARE THESE ANTLERS JUST BIG HE WONDERS OR ARE THEY BRAGGING BIG HE HAS COME TO THE RIGHT PLACE TO FIND OUT TO MOST NON HUNTERS BOONE AND CROCKETT ARE MERELY SURNAMES FOR DANIEL AND DAVY BUT AMONG THE NATION'S FIFTEEN POINT SEVEN MILLION HUNTERS THEY REPRESENT THE PINNACLE OF BIG TIME BIG GAME HUNTING BLUE BLOOD THEODORE ROOSEVELT STARTED THE CLUB IN ONE THOUSAND EIGHT HUNDRED EIGHTY SEVEN AN AVID HUNTER WHO FILLED THE WHITE HOUSE DINING ROOM WITH STUFFED HEADS DURING HIS PRESIDENCY HE WANTED A GROUP WITH ENOUGH FINANCIAL AND POLITICAL CLOUT TO MAKE SURE THERE WOULD BE PLENTY OF BIG GAME LEFT TO HUNT IN THE WEST AFTER THE DEPREDATIONS OF THE BUFFALO SLAUGHTER BOONE AND CROCKETT'S HEADQUARTERS IN AN ELEGANT OLD RAILROAD DEPOT HERE ATTEST TO THAT AN EIGHT FOOT STUFFED ALASKAN BROWN BEAR REARS ON ITS HIND LEGS JUST INSIDE THE DOOR STUFFED MOOSE HEADS ELK ANTLERS AND BIGHORN SHEEP ARE PILED IN ALCOVES AND CLOSETS PART OF THE CLUB'S COLLECTION OF SOME THREE THOUSAND TROPHIES THE CLUB ITSELF REMAINS TINY AND ELITE MEMBERSHIP LIMITED TO ONE HUNDRED BY MR. ROOSEVELT HAS INCLUDED A SPRINKLING OF ROCKEFELLERS MELLONS AND OTHER WEALTHY EASTERNERS BUT THE CLUB HAS BECOME WELL KNOWN AS THE LEADING ARBITER AND SCOREKEEPER FOR NORTH AMERICAN BIG GAME RECORDS SINCE IT BEGAN PUBLISHING ITS RECORD BOOK IN NINETEEN THIRTY TWO LAST YEAR HUNTERS SUBMITTED SOME ONE THOUSAND TWO HUNDRED KILLS EVERYTHING FROM MOOSE TO MUSK OX SEEKING A SPOT IN BOONE AND CROCKETT'S SIX HUNDRED ONE PAGE RECORD BOOK QUOTE WE'RE THE GOLD STANDARD AND THE AUTHORITY ON BIG GAME RECORDS QUOTE BOASTS CLUB SPOKESMAN JAMES H. QUOTE RED QUOTE DUKE A HOUSTON TRAUMA SURGEON AND T. V. COMMENTATOR ON THE OUTDOORS MOST TROPHIES INCLUDING MR. SCHOENING'S MULE DEER FALL SHORT OF THE CLUB'S RIGID SIZE AND CONFIGURATION STANDARDS BUT THAT DOESN'T SEEM TO DETER THE RANCHER WHO PULLS A WELL THUMBED SNAPSHOT FROM HIS WALLET OF ANOTHER DEER HE SHOT TWO YEARS AGO THAT NEARLY QUALIFIED I WANT TO MAKE THAT BOOK SOME DAY HE SAYS SOLEMNLY LOTS OF HUNTERS SHARE THAT AIM ANIMAL RIGHTS CONCERNS AND POPULATION SHIFTS HAVE FLATTENED THE GROWTH OF HUNTING IN THE U. S. OVER THE PAST DECADE BUT THERE ARE PLENTY OF AFFLUENT BABY BOOMERS BLASTING AWAY IN THE WOODS IN HOPES OF BAGGING A BIG GAME RECORD FEDERAL WILDLIFE OFFICIALS ESTIMATE THAT FIVE POINT ONE BILLION DOLLARS WAS SPENT ON BIG GAME HUNTING IN NINETEEN NINETY TWO UP THIRTEEN PERCENT FROM TEN YEARS AGO YOU TALK ABOUT A BUNCH OF COMPULSIVE PEOPLE SAYS DOCTOR DUKE THIS IS SERIOUS BUSINESS SUBMISSIONS FOR ENTRY IN BOONE AND CROCKETT'S RECORDS OF NORTH AMERICAN BIG GAME HAVE CLIMBED FOURFOLD IN THE PAST TEN YEARS EVERYBODY WANTS TO BRAG THEY GOT THE BIGGEST SAYS JERRY JOHNSTON WHO HEADS THE TEXAS TROPHY HUNTER ASSOCIATION IN SAN ANTONIO FOR SOME OF HIS MEMBERS MR. JOHNSTON SAYS A BOONE AND CROCKETT LISTING QUOTE IS THE ULTIMATE GOAL IN LIFE QUOTE RECORDS ARE FALLING FAST AS THE POPULATION AND HEALTH OF SOME WILDLIFE SPECIES IMPROVE RANDY HORN GENERAL MANAGER OF JONAS BROTHERS INCORPORATED A DENVER TAXIDERMIST SAYS A BIG GAME TROPHY CERTIFIED BY BOONE AND CROCKETT IS THE EQUIVALENT OF A WORK OF FINE ART FOR SOME HUNTERS AND RANKED TROPHIES CAN ALSO COST AS MUCH AS FINE ART MR. HORN'S COMPANY SOLD A SET OF MULE DEER ANTLERS RANKED NUMBER EIGHTEEN BY BOONE AND CROCKETT FOR SIX THOUSAND DOLLARS WHITE TAILED DEER HAVE FETCHED TWICE THAT AND A TOP RANKED RACK OF ELK ANTLERS COULD SNAG A SIX FIGURE PRICE FROM TROPHY COLLECTORS HE SAYS A HUNTER BID THREE HUNDRED THREE THOUSAND DOLLARS FOR A STATE PERMIT TO SHOOT A RARE DESERT BIGHORN SHEEP IN ARIZONA LAST YEAR HUNTING MUSK OX IN THE HIGH ARCTIC CAN COST THIRTY THOUSAND DOLLARS AND THE WHITE MOUNTAIN APACHES WHO BOAST TROPHY SIZE ELK ON THEIR ARIZONA RESERVATION CHARGE HUNTERS ELEVEN THOUSAND DOLLARS FOR A SPOT ON THEIR FIVE YEAR WAITING LIST FOR THOSE WHO CAN'T WAIT THE TRIBE HOLDS AN AUCTION FOR AN IMMEDIATE SLOT TOP BID RARE SPECIES STAND THE BEST CHANCE OF MAKING THE CLUB'S BOOK ONLY ABOUT TWENTY HUNTERS SUBMITTED MUSK OX KILLS FOR CONSIDERATION IN NINETEEN NINETY TWO FOR EXAMPLE WHILE NEARLY A QUARTER OF LAST YEAR'S ENTRIES WERE WHITE TAILED DEER GEORGE COOK A THIRTY TWO YEAR OLD POULSBO WASHINGTON HUNTER WHOSE BOONE AND CROCKETT WHITE TAIL IS RANKED TWO HUNDRED TWENTY SHOT THE ANIMAL IN NINETEEN EIGHTY FIVE AND HAS BEEN LOOKING FOR A BIGGER ONE EVER SINCE LAST YEAR HE SPENT MORE THAN TEN THOUSAND DOLLARS AND THIRTY FIVE DAYS ON WHAT HE CALLS HIS HOLY GRAIL QUEST BUT MAKING BOONE AND CROCKETT TWICE IS A LONG SHOT IF YOU GET A RECORD IN BOONE AND CROCKETT ONCE YOU'RE A LUCKY SOB SAYS PETER STUDWELL A RETIREE AND HUNTER IN PORT CHESTER N. Y. IF YOU GET IN MORE THAN ONCE YOU'RE PROBABLY A POACHER OVER THE YEARS BOONE AND CROCKETT OFFICIALS HAVE TOSSED OUT SEVERAL DOZEN WOULD BE RECORD HOLDERS WHOSE TROPHIES WERE FOUND TO HAVE BEEN POACHED OR IN ONE CASE STOLEN CLUB RULES REQUIRE THAT ALL RECORD BOOK ANIMALS BE TAKEN LEGALLY ONE MAN WOUND UP CONVICTED OF POACHING AFTER SUBMITTING A BIGHORN SHEEP ILLEGALLY SHOT FROM A HELICOPTER IN THE NINETEEN SIXTIES SO FIERCE IS THE COMPETITION FOR A LISTING THAT SOME HUNTERS HAVE THREATENED TO SUE WHEN THEIR ENTRIES WERE REJECTED OTHERS HAVE TRIED SLIPPING IN FAKE ANTLERS MADE OF PLASTIC THE CLUB'S SEVEN HUNDRED VOLUNTEER SCORERS ARE TRAINED TO WATCH FOR COUNTERFEITS IN THE LATE NINETEEN SEVENTIES CLUB OFFICIALS QUIETLY DETHRONED A PRONGHORN THAT FOR DECADES HELD THE WORLD RECORD A TAXIDERMIST DISCOVERED DURING A ROUTINE CLEANING THAT SOMEONE HAD ADDED TWO INCHES TO THE HORNS AND COVERED UP THE EXTENSION WITH LAMPBLACK AND PAPIER MACHE CLUB SCORERS ALSO BECAME SUSPICIOUS WHEN A HUNTER SUBMITTED AN UNUSUALLY LARGE AND ODD SHAPED SKULL IN THE EARLY NINETEEN EIGHTIES THAT HE SAID WAS A COUGAR HE SHOT IN ARIZONA PHILIP WRIGHT THE CLUB'S SENIOR SCORER SENT IT TO THE SMITHSONIAN INSTITUTION IT TURNED OUT TO BE A LEOPARD SAYS MR. WRIGHT WHO CHARITABLY ATTRIBUTES THE MIX UP TO A TAXIDERMIST'S MISTAKE MAKING BOONE AND CROCKETT'S MEMBERSHIP ROLLS IS EVEN TOUGHER THAN CRACKING ITS RECORD BOOK MEMBERS MUST BE INVITED LOBBYING IS FROWNED ON AND THEY MUST HAVE BAGGED AT LEAST THREE BIG GAME SPECIES CURRENT MEMBERS INCLUDE TWO ROOSEVELTS THEODORE THE FOURTH AND KERMIT AND SENATOR FRANK H. MURKOWSKI AND REPRESENTATIVE DON YOUNG BOTH ALASKAN REPUBLICANS THE CLUB BEGAN INVITING WOMEN IN NINETEEN NINETY TWO SO FAR TWO BELONG QUOTE THERE ARE QUITE A NUMBER OF PEOPLE QUOTE SAYS MR. WRIGHT QUOTE WHO ARE EITHER NOT SUITABLE TO US OR WE TO THEM QUOTE AMONG THE LATTER ARE ANIMAL RIGHTS GROUPS WHO SNARL AT BOONE AND CROCKETT'S BOAST THAT THEIRS IS THE NATION'S OLDEST CONSERVATION GROUP BOONE AND CROCKETT IS A REAL ANTIQUE THEY'VE GOT DUST ALL OVER THEM SAYS WAYNE PACELLE DIRECTOR OF THE FUND FOR ANIMALS WHICH HAS PICKETED THE CLUB'S ANNUAL MEETINGS SAYS ALLEN RUTBERG A SCIENTIST AT THE HUMANE SOCIETY OF THE U. S. YOU KILL AN ELK AND YOU GET YOUR NAME IN THE RECORD BOOK THIS IS NOT GOING TO SAVE THE PLANET CLUB MEMBERS ARGUE THAT THEY HAVE SPENT MILLIONS ON BIG GAME CONSERVATION FOR EXAMPLE BOONE AND CROCKETT BOUGHT A SIX THOUSAND ACRE RANCH IN MONTANA FOR TWO MILLION DOLLARS TO STUDY WILDLIFE HABITAT AND GAVE ONE MILLION DOLLARS TO ENDOW A CHAIR IN WILDLIFE STUDIES AT THE UNIVERSITY OF MONTANA SOME PEOPLE JUST DON'T LIKE HUNTING PERIOD SAYS GEORGE BETTAS A BOONE AND CROCKETT MEMBER WHO IS ASSOCIATE DEAN OF STUDENTS AT WASHINGTON STATE UNIVERSITY BIG GAME HUNTING IS QUOTE A TOTAL EXPERIENCE QUOTE MR. BETTAS SAYS IT'S PUTTING IT ALL TOGETHER PLANNING WHERE TO GO STUDYING ANIMALS' HABITS LEARNING WHERE THEY EAT PACKING IN AND SETTING UP CAMP THEN IF I SEE A NICE BULL ELK I'LL TAKE IT AS A LATKE LOVER I WAS FASCINATED BY YOUR DECEMBER FOURTEENTH PAGE ONE ARTICLE ABOUT THE QUOTE PERFECT POTATO PANCAKE QUOTE AND WOULD LIKE TO ADD THE FOLLOWING TO THE SUBJECT ETYMOLOGICALLY THE WORD LATKE PLURAL LATKES COMES FROM THE OLD SLAVIC WORD OLAD'YA FROM WHICH THE CURRENT POLISH WORD OADKA WAS DERIVED THUS THE YIDDISH TERM LATKE MOST LIKELY IS THE SYNCOPATED VERSION OF OLATKA THE BASIC RAW MATERIAL THE PERUVIAN POTATO OCCASIONALLY CALLED PYRKI IN EASTERN EUROPE APPEARED ON THE EUROPEAN SCENE ONLY IN THE EIGHTEENTH CENTURY VIA ENGLAND AND IRELAND THE BYELORUSSIANS ESPECIALLY AROUND MINSK ALSO HOLD POTATO PANCAKES IN HIGH REGARD AND CALL THEM DRANKI THE SHREDDED ONES I FULLY AGREE THAT LATKES O'LATKES TASTE ESPECIALLY GOOD WITH COOL SOUR CREAM AND A KOSHER DILL PICKLE YOUR STORY ABOUT THE ANNUAL POTATO PANCAKE SUPPERS HELD AT BOISE'S CONGREGATION AHAVATH BETH ISRAEL SENT ME TO THE KITCHEN SEVERAL DAYS STRAIGHT PEELING GRATING FRYING AND FLIPPING AND FOR ALL MY EFFORTS I HAVE DECIDED THAT THE ONLY WAY TO MAKE POTATO PANCAKES IS TO SIMPLY PEEL THE POTATOES GRATE THEM CUISINARTING IS O. K. ADD A PINCH OF SALT AND FRY THEM IN OIL TURNING ONCE AND NEVER PRESSING DOWN ON THEM AS THEY FRY PREPARED THIS WAY YOU'LL NOT ONLY HAVE POTATO PANCAKES LIKE THE ONES MY MOTHER AND OTHER HAUSFRAUS MADE IN BAVARIA BUT ALSO LIKE THE ONES GUNTER GRASS DESCRIBES AT SOME LENGTH IN THE TIN DRUM THIN DISKS OF HEAVEN EDGED IN CRISP GOLDEN LACE MAYBE THIS WAS THE MANNA GOD SENT TO THE ISRAELITES LOST IN THE WILDERNESS IF SO THEY WERE LUCKY INDEED MY GRANDMOTHER WAS NOT A HIPPIE SHE TAUGHT ME THAT MATZO MEAL IS ADDED TO LATKE'S BECAUSE IT ABSORBS THE WATER THE POTATOES LEAVE OUT WHILE ALSO SITTING MORE READILY THAN FLOUR AND BECAUSE ONE NEEDS SO MUCH LESS GIVING A LIGHTER MORE POTATO FLAVORED LATKE CARROTS IN VEGETABLE PANCAKES PERHAPS IN LATKE'S NEVER BISQUICK IN LATKES A SACRILEGE IN A MOVE TO FILL OUT ITS MANAGEMENT TEAM MONTGOMERY WARD AND COMPANY NAMED BERNARD W. ANDREWS PRESIDENT AND CHIEF OPERATING OFFICER OF ITS FLAGSHIP RETAIL DIVISION THE MOVE COMES JUST A MONTH AFTER THE BIG RETAILER ANNOUNCED THE RESIGNATION OF HAROLD KAHN ITS CORPORATE PRESIDENT AND SENIOR MERCHANT MR. ANDREWS TAKES OVER MOST OF MR. KAHN'S FORMER RESPONSIBILITIES THOUGH HIS TITLE IS DIFFERENT THE MOVE COMES JUST A MONTH AFTER THE BIG RETAILER ANNOUNCED THE RESIGNATION OF HAROLD KAHN ITS CORPORATE PRESIDENT AND SENIOR MERCHANT THAT POSITION REMAINS UNFILLED MR. ANDREWS FIFTY TWO YEARS OLD HAS WORKED AT MONTGOMERY WARD BEFORE AND IN FACT HAS WORKED WITH BERNARD F. BRENNAN MONTGOMERY WARD'S CHAIRMAN FOR TWENTY YEARS FIRST AT SEARS ROEBUCK AND COMPANY AND LATER AT MONTGOMERY WARD MR. ANDREWS LEFT MONTGOMERY WARD IN NINETEEN NINETY TO TAKE THE POSITION OF EXECUTIVE VICE PRESIDENT AT ELECTRONICS RETAILER CIRCUIT CITY STORES INCORPORATED HIS POSITIONS AT MONTGOMERY WARD ARE NEWLY CREATED IN HIS NEW POSTS MR. ANDREWS FACES THE TASK OF RE ENERGIZING THE COMPANY'S APPAREL SALES WHICH DIDN'T MEET MR. BRENNAN'S TARGETS LAST YEAR MORE THAN A DOZEN SENIOR LEVEL OFFICIALS HAVE RESIGNED FROM MONTGOMERY WARD SINCE THE COMPANY WAS TAKEN PRIVATE IN A THREE POINT EIGHT BILLION DOLLAR LEVERAGED BUYOUT IN NINETEEN EIGHTY EIGHT ALL THE TURNOVER HAS GIVEN MONTGOMERY WARD AN IMAGE OF INSTABILITY YESTERDAY MR. BRENNAN SAID THAT ISN'T THE CASE QUOTE MOST OF THE PEOPLE ON OUR MANAGEMENT TEAM NOW WERE ON OUR MANAGEMENT TEAM YEARS AGO QUOTE HE SAID BUT MR. BRENNAN ADDED THAT HE HOPED THERE WILL BE FEWER CHANGES IN MONTGOMERY WARD'S EXECUTIVE RANKS IN THE FUTURE DANIEL LEVY MR. KAHN'S PREDECESSOR LEFT MONTGOMERY WARD EARLIER IN NINETEEN NINETY THREE AND MR. KAHN HADN'T WORKED AT MONTGOMERY WARD OR WITH MR. BRENNAN BEFORE HIS FOURTEEN MONTH STINT AS THE COMPANY'S NUMBER TWO OFFICER FOR SOME INDUSTRY OBSERVERS THE TURMOIL IN MONTGOMERY WARD'S TOP RANKS HAS CLOUDED THE COMPANY'S POTENTIAL FOR GOING PUBLIC MR. BRENNAN SAID THAT THOUGH A COMMON STOCK OFFERING REMAINS A VIABLE OPTION FOR THE NATION'S SECOND LARGEST CLOSELY HELD RETAILER IT ISN'T ONE HE IS CURRENTLY CONTEMPLATING WITH A COMPLETE MANAGEMENT TEAM IN PLACE MR. BRENNAN SAID HE SHOULD HAVE MORE TIME TO FOCUS ON BUILDING THE COMPANY'S NONCORE BUSINESSES SUCH VENTURES INCLUDE MONTGOMERY WARD'S CATALOG BUSINESS AND A RECENT INITIATIVE TO BUILD SMALLER STORES IN SMALLER MARKETS HE ALSO FORECAST THAT MONTGOMERY WARD WILL REPORT NINETEEN NINETY THREE SALES OF ABOUT SIX BILLION DOLLARS IN NINETEEN NINETY TWO THE COMPANY HAD SALES OF FIVE POINT EIGHT BILLION DOLLARS FIRST UNION CORPORATION CONTINUING TO EXPAND ITS OPERATIONS IN FLORIDA SAID IT AGREED TO ACQUIRE BANCFLORIDA FINANCIAL CORPORATION IN A STOCK SWAP VALUED AT ABOUT ONE HUNDRED SIXTY EIGHT MILLION DOLLARS SEPARATELY THE BANK HOLDING COMPANY REPORTED THAT FOURTH QUARTER EARNINGS JUMPED TO ONE HUNDRED NINETY FIVE POINT THREE MILLION DOLLARS OR ONE DOLLAR AND TWELVE CENTS A SHARE FROM A RESTATED SEVENTEEN POINT FOUR MILLION DOLLARS OR FIVE CENTS A SHARE A YEAR EARLIER FIRST UNION ORIGINALLY REPORTED NINETEEN NINETY TWO FOURTH PERIOD EARNINGS OF ONE HUNDRED THIRTY FOUR POINT EIGHT MILLION DOLLARS OR NINETY FIVE CENTS A SHARE THE LASTEST PERIOD'S RESULTS REFLECTED UNUSUALLY STRONG LOAN GROWTH AND HEALTHY SECURITIES FEES BANCFLORIDA WITH THIRTY SEVEN OFFICES AND ABOUT ONE POINT FIVE BILLION DOLLARS IN ASSETS WILL FILL A CRITICAL GAP FOR FIRST UNION IN THE SOUTHWEST CORNER OF FLORIDA ANALYSTS SAID THE ONLY HAZARD FOR FIRST UNION IS BANCFLORIDA'S TROUBLED LOAN PORTFOLIO ITS NONPERFORMING ASSETS ARE ABOUT FOUR PERCENT OF TOTAL ASSETS ROUGHLY TWICE THE INDUSTRY AVERAGE STILL FIRST UNION SAID IT IS CONFIDENT IT CAN HELP BANCFLORIDA WHICH IS BASED IN NAPLES SHORE UP ITS BALANCE SHEET QUOTE WE THINK THEY HAVE A GOOD HANDLE ON THEIR CREDIT PROBLEMS QUOTE SAID MALCOLM MURRAY FIRST UNION'S CHIEF CREDIT OFFICER FIRST UNION ALSO EXPECTS TO BE ABLE TO SHAVE AS MUCH AS THIRTY FIVE PERCENT FROM BANCFLORIDA'S ANNUAL NONINTEREST EXPENSES ONCE THE TWO COMPANIES COMPLETE THEIR CONSOLIDATION UNDER THE AGREEMENT BANCFLORIDA SHAREHOLDERS WILL RECEIVE TWENTY EIGHT DOLLARS TO THIRTY DOLLARS OF FIRST UNION COMMON STOCK FOR EACH OF THEIR SHARES BASED ON THE MARKET PRICE OF FIRST UNION'S STOCK AFTER THE ACQUISITION IS COMPLETED FIRST UNION ALSO WILL BUY BACK HALF OF THE ISSUED SHARES ON THE OPEN MARKET AFTER THE TRANSACTION IS CLOSED TO MINIMIZE THE NUMBER OF NEW SHARES ON THE MARKET IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BANCFLORIDA SHARES CLOSED AT TWENTY SIX POINT EIGHT SEVEN FIVE DOLLARS UP THREE POINT EIGHT SEVEN FIVE DOLLARS OR SEVENTEEN PERCENT FIRST UNION SHARES CLOSED AT FORTY TWO POINT THREE SEVEN FIVE DOLLARS UP FIFTY CENTS FOR ALL OF NINETEEN NINETY THREE FIRST UNION REPORTED NET INCOME OF EIGHT HUNDRED SEVENTEEN POINT FIVE MILLION DOLLARS OR FOUR DOLLARS AND SEVENTY THREE CENTS A SHARE COMPARED WITH A RESTATED THREE HUNDRED EIGHTY FIVE POINT ONE MILLION DOLLARS OR TWO DOLLARS AND TWENTY THREE CENTS A SHARE THE BANK SAID NINETEEN NINETY TWO RESULTS WERE RESTATED TO ACCOUNT FOR ACQUISITIONS FIRST UNION SAID TAX EQUIVALENT NET INTEREST INCOME ROSE TWELVE PERCENT IN NINETEEN NINETY THREE THE BANK'S FEE INCOME FROM SECURITIES AND CAPITAL MANAGEMENT JUMPED THIRTEEN PERCENT STRIKING WORKERS AT GENERAL MOTORS CORPORATION'S ASSEMBLY PLANT IN SHREVEPORT LOUISIANA RATIFIED A THREE YEAR LABOR CONTRACT THAT WILL REQUIRE THE COMPANY TO ADD ONE HUNDRED WORKERS AT THE PLANT WIPING OUT SOME OF ITS PRODUCTIVITY GAINS THE SETTLEMENT REPRESENTS A SETBACK FOR G. M. WHICH IS STRUGGLING TO RAISE PRODUCTIVITY SO IT CAN COMPETE WITH LEANER COMPANIES SUCH AS FORD MOTOR COMPANY WITH THE ADDED WORKERS THE SHREVEPORT PLANT WILL USE TWENTY SEVEN PERCENT MORE WORKERS YET ASSEMBLE ONLY ELEVEN PERCENT MORE VEHICLES THAN A COMPETING FORD TRUCK PLANT IN MINNESOTA BOTH PLANTS BUILD COMPACT PICKUP TRUCKS IN ADDITION TO ADDING BACK JOBS AT THE PLANT G. M. ALSO AGREED TO PROVIDE EMPLOYMENT FOR AN UNDETERMINED NUMBER OF G. M. WORKERS IN A NEARBY JOHNSON CONTROLS INCORPORATED FACTORY THAT BUILDS SEATS FOR THE SHREVEPORT ASSEMBLY PLANT A G. M. SPOKESWOMAN SAID BY ADDING ONE HUNDRED WORKERS AT SHREVEPORT G. M. WILL ESSENTIALLY SLOW DOWN CERTAIN WORK AT THE PLANT HOWEVER THE SPOKESWOMAN SAID ABOUT A THIRD OF THE NEW WORKERS WILL BE USED TO REPLACE OTHERS WHO HAVE RETIRED OR TRANSFERRED AND SHE SAID THESE WORKERS WOULD HAVE BEEN REPLACED ANYWAY THE NEW SHREVEPORT WORKERS WILL COME FROM THE COMPANY'S POOL OF SURPLUS LABOR AT OTHER FACILITIES IN RETURN FOR THESE CONCESSIONS G. M. SAID IT DEFUSED A UNION ATTEMPT TO CHANGE THE PLANT'S OPERATING AGREEMENT WHICH INCLUDES DEPLOYMENT OF WORKERS IN TEAMS AND FLEXIBLE CLASSIFICATIONS FOR SKILLED TRADES WORKERS QUOTE WE WERE ABLE TO PRESERVE OUR BASIC WORK PHILOSOPHY WHICH WAS CHALLENGED IN THESE NEGOTIATIONS QUOTE SAID THE COMPANY SPOKESWOMAN WHO ADDED THAT THE PLANT WILL STILL BE ABLE TO MEET ITS PRODUCTIVITY GOALS DESPITE THE ADDED WORKERS PRODUCTION AT SHREVEPORT WHERE FOUR THOUSAND COMPACT PICKUP TRUCKS ARE BUILT WEEKLY WILL RESUME TODAY ANALYSTS ESTIMATE THAT THE STRIKE WILL HURT G. M.'S BOTTOM LINE BY BETWEEN EIGHT MILLION DOLLARS AND TWELVE MILLION DOLLARS MORE IMPORTANT IS THE PRECEDENT THE SHREVEPORT PACT SETS FOR OTHER PLANTS ALTHOUGH G. M. AND THE UNITED AUTO WORKERS SIGNED A NATIONAL THREE YEAR PACT IN NOVEMBER G. M. STILL HAS ABOUT FIFTY LOCATIONS WHERE IT AND THE UNION HAVE YET TO AGREE ON LOCAL CONTRACTS THE U. A. W. HAS VOWED TO FIGHT ANY PRODUCTIVITY IMPROVEMENT THAT COMES THROUGH A WORK SPEEDUP YOU CAN BUY ALMOST ANYTHING ON THE STREETS OF RIGA THESE DAYS CHIVAS REGAL WHISKEY MERCEDES BENZ SEDANS ELECTROLUX MICROWAVE OVENS DOWN THE BLOCK FROM THE OLD K. G. B. OFFICE THE PRICEY CLOTHIER HUGO BOSS JUST OPENED SHOP SO WHO'S BUYING IT ALL CERTAINLY NOT VOLDAMAR MIESNIEKS AN EIGHTY YEAR OLD PENSIONER WHO IS HAWKING NEWSPAPERS IN THE COLD OUTSIDE A DEPARTMENT STORE HIS PENSION IS ABOUT THIRTY FIVE DOLLARS A MONTH NOT ENOUGH FOR BREAD AND SAUSAGE LET ALONE LUXURY APPLIANCES QUOTE THE STORES ARE FULL THE SHELVES ARE FULL THERE'S A LOT OF STUFF TO BUY QUOTE HE SAYS THERE'S NOTHING LACKING BUT THE MONEY TO BUY IT BUSINESS IS BOOMING IN RIGA RECLAIMING LATVIA'S CENTURIES OLD STATUS AS GATEWAY BETWEEN RUSSIA AND EUROPE BUT THE FORMER SOVIET REPUBLIC IS HAVING TROUBLE TRANSLATING THIS FLURRY OF TRADING ACTIVITY INTO PROSPERITY FOR ITS PEOPLE THE RESULT IS A GILDED AGE IN LATVIA WITH A HANDFUL OF NEWLY MADE MILLIONAIRE BANKERS TRADERS AND MOBSTERS RUNNING ABOUT WHILE THE BULK OF LATVIANS STRUGGLE BY MANY MEASURES LATVIA'S PROGRESS IN THE PAST EIGHTEEN MONTHS IS DRAMATIC BACK IN NINETEEN NINETY TWO GROSS DOMESTIC PRODUCT DECLINED AT A RATE OF THIRTY SEVEN PERCENT AMID HYPERINFLATION OF MORE THAN ONE THOUSAND PERCENT AND SHORTAGES OF FOOD AND OIL BUT THE GOVERNMENT SAYS THE ECONOMY HAS STOPPED CONTRACTING AND NOW FORECASTS FIVE PERCENT ECONOMIC GROWTH IN NINETEEN NINETY FOUR INFLATION HAS DROPPED TO AN ANNUAL RATE OF TWELVE PERCENT AND IS FORECAST TO SLOW TO SIX PERCENT THIS YEAR LATVIA'S SIX MONTH OLD CURRENCY THE LAT IS FULLY CONVERTIBLE AND HAS STRENGTHENED AGAINST MAJOR CURRENCIES A SURVEY OF THIRTY FIVE ECONOMISTS IN EUROMONEY A FINANCIAL MAGAZINE CONCLUDED THAT LATVIA WOULD HAVE THE MOST IMPROVED ECONOMY IN EASTERN EUROPE IN NINETEEN NINETY FOUR SOME EIGHTY BANKS HAVE SPRUNG UP HERE WITH DEPOSITS SOARING TO FIVE HUNDRED MILLION DOLLARS FROM ONE HUNDRED MILLION DOLLARS AT THE BEGINNING OF NINETEEN NINETY THREE TWO FOUR STAR HOTELS HAVE OPENED IN RIGA AND A THREE HUNDRED EIGHTY BED RADISSON IS ON THE WAY THE AIRPORT IS EXPANDING TO ACCOMMODATE BOEING SEVEN FORTY SEVENS IT'S COMING ALIVE ALL OVER THE PLACE SAYS JONATHAN BEMIS COMMERCIAL OFFICER AT THE U. S. EMBASSY HE FIGURES THE COUNTRY'S GEOGRAPHY IT'S LOCATED IN THE MIDDLE OF THE THREE BALTIC STATES AND HAS THE BIGGEST PORT BETWEEN SAINT PETERSBURG RUSSIA AND GDANSK POLAND AND ITS RELATIVELY STABLE AND FRIENDLY GOVERNMENT WILL MAKE LATVIA THE REGION'S HONG KONG LATVIA IS BECOMING A FINANCIAL CENTER FOR THE BALTICS AND THE FORMER SOVIET UNION AGREES JERRY RALOWSKI A POLE WHO COORDINATES COOPERS AND LYBRAND'S EASTERN EUROPEAN AND BALTIC OPERATIONS MANY THINGS ARE GOING IN THE RIGHT DIRECTION BUT NOT EVERYTHING LATVIA STILL RELIES ON THE FORMER SOVIET STATES FOR FIFTY FIVE PERCENT OF ITS EXPORTS AND IT REMAINS CLOSELY TIED TO THE PRECARIOUS RUSSIAN ECONOMY IT HAS NO RELIABLE LEGAL SYSTEM AND AS THE RECENT ELECTIONS IN RUSSIA UNDERSCORE POLITICAL STABILITY ISN'T ASSURED THE RUSSIAN MAFIA HAS A STRONG FOOTHOLD HERE THE GOVERNMENT HAS PRIVATIZED ONLY TWENTY BUSINESSES OF ANY SIZE AND HAS SOME ONE THOUSAND REPRESENTING NEARLY SEVENTY FIVE PERCENT OF ALL INDUSTRY TO GO JOHN HINDE WHO OPERATES THE GLOBAL TRADE GROUP COMMODITY BROKERAGE FIRM IN RIGA SAYS THE LATVIAN PROGRESS SO FAR IS JUST A PAINT JOB ONE PROBLEM NEW BUSINESSES ARE STOREFRONTS RATHER THAN FACTORIES QUOTE AT THE FIRST SIGN OF TROUBLE THEY CAN BE GONE IN A FEW DAYS QUOTE HE SAYS WHAT WEALTH HAS COME TO LATVIA SO FAR HAS BEEN VERY CONCENTRATED CREATING A CLASS DIVISION BETWEEN RICH AND POOR WITH NO MIDDLE CLASS IN SIGHT PRICES OF EVEN ORDINARY GOODS SUCH AS BREAD AND SALAMI PUT THEM BEYOND THE REACH OF MANY AS THE AVERAGE SALARY IS LESS THAN ONE HUNDRED DOLLARS A MONTH AND THE GOVERNMENT ACKNOWLEDGES THAT UNEMPLOYMENT OFFICIALLY FIVE POINT FIVE PERCENT COULD REALLY BE THIRTY PERCENT OR SO THE RESULT IS A TENSE MIXTURE BETWEEN HAVES AND HAVE NOTS THESE THINGS WORRY VALERIJS KARGINS PRESIDENT OF PAREX BANK ONE OF LATVIA'S LARGEST WITH ASSETS OF ONE HUNDRED NINETY SIX MILLION DOLLARS THE THIRTY TWO YEAR OLD RUSSIAN MOGUL A FORMER JOURNALIST HAS MADE HIMSELF MANY MILLIONS ALREADY HIS EIGHTEEN MONTH OLD BANK HAS A COMFORTABLE FOUR THOUSAND FOUR HUNDRED PERCENT RETURN ON INVESTMENT THE BANK WHICH CHARGES INTEREST OF EIGHTY PERCENT AND PAYS INTEREST OF SIXTY PERCENT HAS OFFICES ALL OVER RUSSIA AND SWISS STYLE NUMBERED ACCOUNTS BOTH IN DOLLARS AND LATS PAREX'S SLOGAN WE ARE NEARER THAN SWITZERLAND BUT THE BANK BUSINESS IS BOOMING BECAUSE OF WESTERN CAPITAL MOVING INTO RUSSIA TO PAY FOR COMMODITIES BEING SHIPPED OUT WE SEE NO INVESTMENT INTO THE ECONOMY OF LATVIA SAYS MR. KARGINS HIS BODYGUARD NEARBY IN PRINCIPLE HE SAYS BANKING MUST POSITIVELY INFLUENCE OTHER BRANCHES OF THE ECONOMY BUT IN PRACTICE MR. KARGINS FEARS AN ECONOMIC DROP OFF OF A CHAOTIC NATURE STILL THERE ARE HOPEFUL SIGNS THE GOVERNMENT HAS FORMED NEW AGENCIES TO STREAMLINE FOREIGN INVESTMENT AND PRIVATIZATION IT HAS ALREADY SPUN OFF ALMOST ALL STATE FARMS TO FIFTY FOUR THOUSAND FARMERS WESTERN COMPANIES ARE BIDDING SOME ONE BILLION DOLLARS FOR A HALF STAKE IN LATVIA'S TELEPHONE SYSTEM AND THE STATE SHOULD BE ABLE TO SELL ITS HEALTHY SHIPPING OIL REFINERY TEXTILE AND TIMBER BUSINESSES KELLOGG COMPANY BUILT A TWENTY TWO MILLION DOLLAR CEREAL PLANT TO SUPPLY THE BALTICS AND RUSSIA BEGINNING IN JANUARY QUOTE THE INVESTMENT IS BEING MADE VERY CAUTIOUSLY QUOTE SAYS SOL N. BUKINGOLTS A LATVIAN AMERICAN DOING BUSINESS HERE IT WILL TAKE OFF THERE'S NO DOUBT HIS COMPANY CHICAGO BASED INTERSOURCE INTERNATIONAL INCORPORATED HAS OPENED SIX AMERICAN FRIED CHICKEN AND LITTLE JOHNNY'S AMERICAN PIZZA RESTAURANTS SINCE NINETEEN NINETY ONE THE CHAINS DON'T EXIST IN THE U. S. AS WELL AS A PHARMACEUTICAL BUSINESS ON A CLEARING BESIDE A LAKE FIFTEEN MINUTES OUTSIDE OF TOWN MULTIBAU A LATVIAN OWNED CONSTRUCTION BUSINESS IS BUILDING TWENTY SEVEN NEW HOUSES A SIGN OF THE NEW AND YET EXTREMELY TARGETED INVESTMENT THE HOMES WITH MARBLE WALLS WHIRLPOOLS SAUNAS ARCHED CEILINGS AND TENNIS COURTS SELL FOR THREE HUNDRED FIFTY THOUSAND DOLLARS TO SIX HUNDRED THOUSAND DOLLARS WE CAN'T BUILD CHEAP HOUSES FOR POOR PEOPLE BECAUSE THEY HAVE NO MONEY SAYS EDGARS VIGANTS MULTIBAU'S VICE PRESIDENT AND OWNER OF ONE OF THE HOMES BUT BY BUILDING FOR LATVIA'S RICH THE THREE YEAR OLD COMPANY IS STARTING TO SPREAD THE WEALTH IT NOW HAS A TWELVE MILLION DOLLAR BOOK VALUE AND EMPLOYS SIX HUNDRED LATVIANS IT EXPORTS LOCAL CONSTRUCTION MATERIALS TO SWEDEN GERMANY THE NETHERLANDS AND THE UNITED KINGDOM WHEN LATVIA'S MIDDLE CLASS ARRIVES MULTIBAU PLANS TO BUILD EIGHTY THOUSAND DOLLARS HOMES AFTER SOME YEARS THIS NEW LATVIAN ECONOMY WILL GROW MR. VIGANTS SAYS WE HAVE NO WAY TO GO BUT UP POGO PRODUCING COMPANY SAID IT COMPLETED A DEVELOPMENT WELL IN THE GULF OF THAILAND THE OIL AND GAS COMPANY WHICH OWNS A THIRTY ONE POINT SEVEN PERCENT WORKING INTEREST IN THE TANTAWAN NUMBER THREE WELL SAID THE WELL TESTED AT FORTY POINT SEVEN MILLION CUBIC FEET OF NATURAL GAS AND EIGHT THOUSAND SIX HUNDRED EIGHTY FOUR BARRELS OF OIL A DAY FROM FIVE INTERVALS AT DEPTHS RANGING FROM EIGHT THOUSAND NINE HUNDRED FORTY TWO FEET TO NINE THOUSAND SIX HUNDRED EIGHTY THREE FEET BRIAN J. KELLEY FORTY TWO YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF VOICE PROCESSING EQUIPMENT THE FORMER EXECUTIVE VICE PRESIDENT OF TIE SLASH COMMUNICATIONS INCORPORATED SUCCEEDS MATTHEW J. FLANIGAN WHO RESIGNED MR. FLANIGAN FORTY EIGHT WILL REMAIN A DIRECTOR AND ADVISER THE COMPANY AND MR. FLANIGAN DECLINED TO GIVE A REASON FOR THE CHANGE A FORMER PRUDENTIAL SECURITIES INCORPORATED MANAGER IMPLICATED THE FIRM'S LEGAL DEPARTMENT IN POTENTIAL PARTNERSHIP WRONGDOING AS PART OF A CRIMINAL INVESTIGATION PEOPLE FAMILIAR WITH THE CASE SAID THE FORMER EXECUTIVE A PARTNERSHIP PRODUCT MANAGER TOLD FEDERAL PROSECUTORS THAT THE FIRM'S LEGAL DEPARTMENT APPROVED INTERNAL SALES DOCUMENTS AND OTHER MARKETING MATERIALS PRUDENTIAL BROKERS USED IN SELLING PARTNERSHIPS THE PEOPLE SAID THE INFORMATION PROVIDED BY THE PRODUCT MANAGER IS THE FIRST THAT TIES PRUDENTIAL'S LEGAL DEPARTMENT DIRECTLY TO THE PARTNERSHIP SCANDAL AT THE FIRM AS REPORTED PROSECUTORS ARE EXAMINING WHAT ROLE THE EIGHTY SEVEN MEMBER LEGAL DEPARTMENT HAD IN EVALUATING AND SANCTIONING PROSPECTUSES SALES DOCUMENTS AND OTHER MARKETING MATERIALS INVOLVED IN PEDDLING ABOUT EIGHT BILLION DOLLARS OF PARTNERSHIPS IN THE NINETEEN EIGHTIES PRUDENTIAL THE NATION'S FOURTH LARGEST BROKERAGE FIRM IS A UNIT OF PRUDENTIAL INSURANCE COMPANY OF AMERICA THE SALES DOCUMENTS HELPED BROKERS SELL THE PARTNERSHIPS MOST OF WHICH HAVE SOURED MANY OF THE DOCUMENTS URGED BROKERS TO EMPHASIZE HIGH RETURNS AND LOW RISK TO INVESTORS WHO ACTUALLY WERE SEEKING SAFETY THE FORMER PRODUCT MANAGER HAS TOLD PROSECUTORS THAT ROBERT BRUNTON A PRUDENTIAL LAWYER ON STAFF AT THE FIRM REVIEWED AND APPROVED SOME OF THE SALES MATERIALS THE PEOPLE SAID MR. BRUNTON ALSO WAS THE LIAISON BETWEEN THE LAW DEPARTMENT AND PARTNERSHIP GROUP THESE PEOPLE SAID MR. BRUNTON REPORTED TO LOREN SCHECHTER PRUDENTIAL'S GENERAL COUNSEL WHO WAS RELIEVED OF HIS LEGAL DUTIES LAST MONTH AMID THE UNFOLDING CRIMINAL INVESTIGATION MR. BRUNTON NOW A REGIONAL PRUDENTIAL COUNSEL REFERRED QUESTIONS TO A PRUDENTIAL SPOKESMAN WHO DECLINED TO COMMENT KENNETH VIANALE AN ASSISTANT U. S. ATTORNEY DECLINED TO COMMENT PRODUCT MANAGERS WERE KEY CONTACTS FOR PRUDENTIAL BROKERS AND OTHERS IN SELLING THE PARTNERSHIPS THEY WERE THE EXECUTIVES WHO GAVE BROKERS BRANCH MANAGERS AND REGIONAL DIRECTORS CURRENT MARKETING MATERIALS AND UPDATES ON THE PARTNERSHIPS SALES MATERIALS THAT WENT TO INVESTORS PARTICULARLY PROSPECTUSES TYPICALLY WERE REVIEWED BY OUTSIDE COUNSEL THE PEOPLE SAID SOME INTERNAL SALES MATERIALS PARTICULARLY NATIONAL SALES SCRIPTS WERE APPROVED BY PRUDENTIAL'S INTERNAL LAW DEPARTMENT FEDERAL AND STATE REGULATORS IN OCTOBER ACCUSED PRUDENTIAL IN A CIVIL CASE OF MISSTATING THE RISKS AND RETURNS OF THE PARTNERSHIPS UNDER A SETTLEMENT WITH REGULATORS PRUDENTIAL HAS SET UP A THREE HUNDRED THIRTY MILLION DOLLAR REPARATIONS FUND FOR INVESTORS AT THE HEART OF MANY IMPROPER SALES WERE INTERNAL DOCUMENTS THAT URGED BROKERS TO AGGRESSIVELY PUSH RISKY PARTNERSHIPS ON INVESTORS WITH CERTIFICATES OF DEPOSIT THAT WERE APPROACHING MATURITY AND OTHERS WHO WERE SEEKING SAFE INVESTMENTS THE SECURITIES AND EXCHANGE COMMISSION IN A CONTINUING INVESTIGATION OF THE MATTER IS CONSIDERING FILING CIVIL ADMINISTRATIVE PROCEEDINGS AGAINST AS MANY AS FIFTEEN CURRENT AND FORMER PRUDENTIAL EMPLOYEES SEPARATELY THE U. S. ATTORNEY'S OFFICE IN MANHATTAN HAS LAUNCHED A BROAD CRIMINAL INVESTIGATION INTO THE FIRM'S PARTNERSHIP PRACTICES AS REPORTED SEVERAL CURRENT AND FORMER PRUDENTIAL EMPLOYEES WILL BEGIN RECEIVING SUBPOENAS DURING THE NEXT FEW DAYS IN THE CRIMINAL CASE PRUDENTIAL EXECUTIVES FOR THEIR PART BELIEVE THAT THE FIRM ULTIMATELY WILL BE EXONERATED IN THE CRIMINAL INVESTIGATION THE U. S. ATTORNEY'S INVESTIGATION QUOTE RELATES TO EVENTS THAT HAPPENED MANY YEARS AGO AND THAT HAVE BEEN THE SUBJECT OF NOT ONLY EXTENSIVE LITIGATION BUT ALSO FORM THE BASIS OF OUR SETTLEMENT WITH THE S. E. C. AND STATES QUOTE A SENIOR PRUDENTIAL EXECUTIVE SAID WE HAVE BEEN FULLY COOPERATING WITH THE INVESTIGATION AND WE'RE CONFIDENT THAT WHEN IT IS COMPLETED THE U. S. ATTORNEY WILL CONCLUDE THAT NO FURTHER ACTION CONCERNING THE FIRM IS WARRANTED HE ADDED AMERICAN HEALTH PROPERTIES INCORPORATED SAID IT AGREED TO FUND THIRTY MILLION DOLLARS OF AN EIGHTY SIX MILLION DOLLAR FIRST MORTGAGE LOAN ON A HOSPITAL AND MEDICAL OFFICE BUILDING IN AUSTIN TEXAS THE REAL ESTATE INVESTMENT TRUST SAID IT ALREADY HAS FUNDED ABOUT SEVEN MILLION DOLLARS OF ITS COMMITMENT AND WILL PAY THE BALANCE OVER THE REST OF THE CONSTRUCTION PERIOD COMPLETION OF THE SIX HUNDRED SEVENTY THOUSAND SQUARE FOOT FACILITY IS EXPECTED IN JUNE NINETEEN NINETY FIVE THE LOAN WAS ORIGINATED BY NATIONAL HEALTH INVESTORS INCORPORATED OF MURFREESBORO TENNESSEE AT A TIME WHEN AMERICA IS FOCUSED ON CRIME AND IS READY FOR A SERIOUS LOOK AT FIRM BUT PRUDENT PUNISHMENT THE U. S. ATTORNEY GENERAL HAS BECOME DISCONNECTED FROM HER OWN TROOPS THE FOUR THOUSAND SOME ASSISTANT U. S. ATTORNEYS WHO PROSECUTE FEDERAL CRIMES ON BEHALF OF THE JUSTICE DEPARTMENT JANET RENO MAY HAVE DEFINITE PLANS TO ALTER THE DEPARTMENT'S APPROACH TO CRIME BUT SHE APPEARS TO BE LIVING IN AN IVORY TOWER IN A RECENT EFFORT TO COMPREHEND THIS DIVISION I INTERVIEWED SOME SIXTY ASSISTANT U. S. ATTORNEYS THEIR OVERWHELMING CONCERN WAS THAT MS. RENO DOESN'T UNDERSTAND THE DAILY DIFFICULTIES FACING FEDERAL PROSECUTORS SUMMED UP ONE VETERAN DRUG PROSECUTOR QUOTE AM I NOW EMPLOYED BY THE JUSTICE DEPARTMENT OR THE DEPARTMENT OF SOCIAL WORK QUOTE FOR MS. RENO THOSE ARE FIGHTING WORDS SOON AFTER A PRICKLY RECENT INTERVIEW WITH ME DURING WHICH SHE BRISTLED OVER SUGGESTIONS THAT MANY OF HER CAREER PROSECUTORS WERE ALIENATED AND DISENCHANTED SHE ADDRESSED A CONFERENCE OF FIVE HUNDRED FEDERAL DRUG PROSECUTORS IN NEW ORLEANS A REPORTER TOLD ME SHE BEGAN HER ADDRESS THAT ONE OF MY PROSECUTORS THINKS I AM MORE INTERESTED IN BEING A SOCIAL WORKER THAN ATTORNEY GENERAL SHE WENT ON TO TALK ABOUT THE SO CALLED ROOT CAUSES OF CRIME SHE ENDED BY ASKING FOR QUESTIONS BUT THEN SIDESTEPPED THE MOST IMPORTANT ONE THROWN AT HER BY A VETERAN DRUG PROSECUTOR JAY APPERSON FROM VIRGINIA'S EASTERN DISTRICT ON HER APPARENT DETERMINATION TO END MANDATORY MINIMUM SENTENCING WHEN MS. RENO SPEAKS PUBLICLY SHE MAKES A POINT OF ADDRESSING THE N. DOUBLE A. C. P. THE AMERICAN CIVIL LIBERTIES UNION AND LOCAL BAR ASSOCIATIONS THE NATIONAL ASSOCIATION OF CRIMINAL DEFENSE LAWYERS CAN GET ACCESS TO HER OR HER ASSOCIATES ON SHORT NOTICE BUT SHE GIVES SHORT SHRIFT TO HER OWN CAREER PROSECUTORS WHO SPEAKS FOR US ONE LOS ANGELES VETERAN ASKED THIS QUESTION HAS BECOME ESPECIALLY ACUTE LATELY SINCE MS. RENO HAS CALLED FOR A RADICAL REVIEW OF FEDERAL CRIME FIGHTING TACTICS THE REVIEW IS NOW BEING CONDUCTED BY VARIOUS ADVISORY GROUPS WITHIN THE JUSTICE DEPARTMENT LED BY MS. RENO'S DEPUTIES THE CHANGES THAT MAY EMERGE ARE PROFOUNDLY TROUBLING TO FIELD PROSECUTORS WHO FEAR THAT THEIR POWERS WILL BE ERODED MS. RENO'S UNDERLYING PHILOSOPHY APPEARS TO BE THAT CRIME SHOULD BE TREATED AS A HEALTH AND SOCIAL ISSUE AMONG THE POLICIES BEING STUDIED ARE CUTTING BACK ON MANDATORY MINIMUM SENTENCES IN DRUG RELATED CASES RETURNING TO THE PLEA BARGAINING PROHIBITED BY THE NINETEEN EIGHTY NINE THORNBURGH MEMO AND GIVING JUDGES AND DEFENSE ATTORNEYS MORE INPUT IN SENTENCE REDUCTIONS DROPPING THE AUTOMATIC CHARGES FOR USING A GUN IN A FEDERAL CRIME REVISING THE RULES ON DIRECT CONTACT BETWEEN PROSECUTORS AND POTENTIAL WITNESSES IN INVESTIGATIONS PUBLICIZING INTERNAL INVESTIGATIONS OF PROSECUTORS AND EMPHASIZING REHABILITATION AND DRUG TREATMENT INSTEAD OF PUNISHMENT MOST OF THESE PROPOSED CHANGES READ LIKE A WISH LIST FROM THE DEFENSE BAR VETERAN PROSECUTORS HAVE GOOD REASON TO BE WORRIED TAKE MANDATORY MINIMUMS EVERY DRUG PROSECUTOR I INTERVIEWED PRAISED THEIR UTILITY FORMER DRUG ENFORCEMENT AGENCY DIRECTOR AND FEDERAL PROSECUTOR ROBERT BONNER SAYS MANDATORY MINIMUMS HAVE BEEN THE STRONGEST TOOL IN GETTING LOW AND MIDLEVEL DEALERS TO COOPERATE WITH THE GOVERNMENT EARLY ENOUGH IN THE CASE TO HELP THE GOVERNMENT AND YET MS. RENO TOLD ME IN OUR INTERVIEW QUOTE MANDATORY MINIMUMS SHOULDN'T BE USED AS LEVERAGE QUOTE WHAT ARE THEY IF NOT LEVERAGE A NARCOTICS SECTION CHIEF IN WASHINGTON ASKED ME WHEN I REPEATED MS. RENO'S STATEMENT LISTEN WHEN A GUY KNOWS HE'S GOING TO GET ONLY TWO TO THREE YEARS FOR DISTRIBUTION HE CAN HANDLE IT HE KNOWS HE'LL GET PAID FOR HIS SILENCE AND COME OUT OF PRISON RICHER THAN THE PROSECUTOR WHO PUT HIM AWAY BUT HE ADDS WHEN A GUY IS FACING MANDATORY TEN TO FIFTEEN YEARS HE GIVES UP THE NAMES OF HIS BOSSES AS TO PLEA BARGAINING YEAH I'D LIKE MORE DISCRETION IN SOME CASES SAYS A VETERAN IN VIRGINIA QUOTE BUT THOSE CASES ARE FEW AND FAR BETWEEN QUOTE HE ADDS SHE RENO WORRIES ABOUT THE SYSTEM CHEWING UP SO CALLED FIRST TIME OFFENDERS REMEMBER BY THE TIME HE WAS TRIED PABLO ESCOBAR WAS A FIRST TIME OFFENDER THEN THERE'S THE RECENT MOVE TO IGNORE THE AUTOMATIC ADDITIONAL FIVE YEARS FOR USE OF A GUN IN A FEDERAL CRIME SEVERAL PROSECUTORS SAY THEY'VE BEEN ENCOURAGED BY THE NEW ADMINISTRATION TO IGNORE THE FIREARMS CHARGE FORMER ATTORNEY GENERAL WILLIAM BARR SAYS WE INSISTED ON THROWING THE BOOK AT CAREER VIOLENT OFFENDERS AND NOW THAT POLICY IS BEING UNDERMINED MS. RENO'S OFFICE ADMITS THAT ONE OF HER ADVISORY GROUPS IS STUDYING THE APPLICATION OF THE GUN CHARGE AS PART OF THE SITUATION WITH MANDATORY MINIMUMS QUOTE HEY QUOTE SAYS MR. BARR QUOTE DON'T WHINE ABOUT NEW GUN CONTROL LAWS IF YOU WON'T ENFORCE THE ONES ALREADY ON THE BOOKS QUOTE ANOTHER PROBLEM FOR PROSECUTORS IS MS. RENO'S PROPOSAL TO MERGE THE INSPECTOR GENERAL'S OFFICE WHICH REPORTS TO CONGRESS AND THE OFFICE OF PROFESSIONAL RESPONSIBILITY WHICH CONDUCTS INTERNAL INVESTIGATIONS OF PROSECUTORS THIS WILL POLITICIZE THE INTERNAL AFFAIRS UNIT SAYS FORMER U. S. ATTORNEY HENRY HUDSON OF VIRGINIA WHAT IS MORE HER PROPOSAL TO OPEN UP OPR COMPLAINTS DURING HIGH PROFILE CASES IS AN INVITATION TO DEFENSE LAWYERS FOR TARGET PRACTICE ON PROSECUTORS ONE PROSECUTOR WHO WAS EXONERATED BY OPR LAST YEAR REMARKED IF THEY'D PUBLICLY OPENED THE INVESTIGATION OF ME WHILE I WAS STILL PROSECUTING THE LARGER CASE I'D HAVE BEEN HUNG OUT TO DRY ALSO DISTURBING ARE THE CHANGES BEING STUDIED REGARDING WHETHER A PROSECUTOR OR HIS AGENT CAN CONTACT THE TARGET OF A CRIMINAL INVESTIGATION SUCH CONTACTS HELP THE FEDS PURSUE COMPLEX CORPORATE OR ORGANIZED CRIME CASES BY ALLOWING THEM TO INDUCE MEMBERS OF A CRIMINAL CONSPIRACY TO ASSIST THE GOVERNMENT SOME STATE BAR ASSOCIATIONS SAY DIRECT CONTACT BETWEEN FEDS INCLUDING UNDERCOVER AGENTS AND POTENTIAL WITNESSES AND TARGETS WHO ARE REPRESENTED BY COUNSEL IS AN ETHICAL VIOLATION ALTHOUGH MS. RENO REITERATED THE RIGHT OF FEDS TO CONTACT POTENTIAL WITNESSES IN JULY DEPUTY ATTORNEY GENERAL PHILIP HEYMANN AND AN ADVISORY GROUP OF U. S. ATTORNEYS ARE REVIEWING THE GUIDELINES SOURCES INSIDE JUSTICE COMPLAIN THAT MR. HEYMANN'S INITIAL DRAFT SUGGESTED CHANGES THAT WERE DEFENSE BAR FANTASIES AND WOULD HAVE MADE IT IMPOSSIBLE FOR US TO CONDUCT UNDERCOVER INVESTIGATIONS OR TALK TO WITNESSES WHO VOLUNTEERED TO HELP MS. RENO SAYS SHE'S BEEN GIVEN ONE REPORT ON THE SUBJECT BUT WON'T DISCUSS WHERE SHE'S GOING WITH IT WHAT'S HAPPENING HERE ONE POSSIBLE REASON FOR THE DISCONNECT BETWEEN MS. RENO AND HER TROOPS MAY BE THE LACK OF FEDERAL PROSECUTORIAL EXPERIENCE IN THE TOP TRIUMVIRATE OF THE JUSTICE DEPARTMENT MS. RENO WAS A LOCAL PROSECUTOR AND THEN AN ELECTED POLITICIAN ASSISTANT ATTORNEY GENERAL WEBSTER HUBBELL'S PRIVATE FIRM EXPERIENCE DOESN'T LEND ITSELF TO SYMPATHY WITH FRONT LINE PROSECUTORS AND MR. HEYMANN THOUGH ONCE AN OFFICIAL OF THE CRIMINAL DIVISION HAS HAD LITTLE EXPERIENCE AS A FEDERAL PROSECUTOR AND HAS SPENT THE LAST DECADE AS AN ACADEMIC ANOTHER REASON MIGHT BE THE CONFUSION AS TO MS. RENO'S CONSTITUENCY HER POWER BASE IS THE WHITE HOUSE AND ITS SURROGATES MR. HUBBELL AND MR. HEYMANN SHE'S BEEN PLAYING TO AN ELITE AUDIENCE BILL AND HILLARY CLINTON AND ASSORTED CLIENTELE FROM CIVIL RIGHTS ORGANIZATIONS THE AMERICAN BAR ASSOCIATION AND GROUPS LIKE THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA WHO GAVE HUGE SUMS TO THE CLINTON CAMPAIGN WHEN MS. RENO CAME ON BOARD HER CAREER LAWYERS HOPED THAT THEY'D GOTTEN A PROSECUTOR'S PROSECUTOR BUT NOW THEY THINK SHE'S TOO SOFT ON CRIME QUOTE IT'S ALL VERY TOUCHY FEELY QUOTE SAYS A PROSECUTOR FROM SAN ANTONIO AFTER HER CONGRESSIONAL TESTIMONY ON T. V. VIOLENCE ONE OF HER OWN SPOKEMEN MOANED NEXT SHE'LL BE TESTIFYING ABOUT SCHOOL LUNCHES INDEED IN A RECENT LETTER SHE SENT TO PROSECUTORS WITH THEIR PAY SLIPS SHE OUTLINED A KIND OF ZEN MANAGEMENT STYLE ENCOURAGING THE IMPORTANCE OF FAMILY TOGETHERNESS AND CITING THE NATIONAL PERFORMANCE REVIEW'S EMPHASIS ON TOP DOWN SUPPORT FOR BOTTOM UP DECISION MAKING BUT A WASHINGTON AREA PROSECUTOR SAYS WE'RE NOT IN SOCIAL SERVICES WE'RE HERE TO FIGHT CRIME PERHAPS HE ADDS MS. RENO SHOULD TAKE ANOTHER JOB AT HEALTH AND HUMAN SERVICES OR JANET RENO SURGEON GENERAL THE ATTORNEY GENERAL SEEMED AFFRONTED THAT HER PROSECUTORS ARE QUESTIONING HER POLICIES TELL THESE PROSECUTORS TO STICK WITH THEIR JOB WHICH IS PROSECUTING AND LET ME LOOK AT THE LARGER ISSUES QUOTE SHE TOLD ME EVEN AT THIS MOMENT THOUGH SHE MOVES QUICKLY TO HER FAVORITE SOCIAL POLICY THEMES I HAVE TO DEAL WITH MANY AREAS SUCH AS JUVENILE DELINQUENCY PREVENTION THE TROOPS IN THE TRENCHES SHE INDICATES SHOULD JUST KEEP SHOOTING SHE'LL TELL THEM WHICH DIRECTION TO POINT AND HOW MUCH FIREPOWER THEY SHOULD USE AFTER HER STUDY GROUPS MEET MS. MUNDY WRITES FOR THE WASHINGTONIAN MAGAZINE UNDER PRESSURE TO DISCOUNT PRESCRIPTION DRUG PRICES THE PHARMACEUTICAL INDUSTRY IS EXPECTED TO POST THE SLIMMEST QUARTERLY PROFIT GAIN IN MORE THAN A DECADE SECURITIES ANALYSTS PREDICTED FOURTH QUARTER EARNINGS WILL RISE ON AVERAGE THREE PERCENT TO SIX PERCENT COMPARED WITH FIFTEEN PERCENT TO TWENTY PERCENT INCREASES GENERATED BY MAJOR DRUG MAKERS FROM THE MID NINETEEN EIGHTIES THROUGH NINETEEN NINETY TWO THE SLOWING IN PROFIT GROWTH IS HAVING WIDESPREAD EFFECTS COMPANIES ARE RESTRUCTURING REDUCING WORK FORCES AND FORMING COST SAVING ALLIANCES THE MOST IMPORTANT REASON DRUG MAKERS HAVE LOST THE ABILITY TO BOOST PRICES AT WILL IN THE U. S. AND ABROAD ANALYSTS ANTICIPATE PFIZER INCORPORATED AND SCHERING PLOUGH CORPORATION WILL STILL REPORT EARNINGS RISES OF ABOUT EIGHTEEN PERCENT AND FIFTEEN PERCENT RESPECTIVELY MOSTLY BECAUSE BOTH COMPANIES SELL INNOVATIVE PRODUCTS FOR WHICH THEY CAN DEMAND PREMIUM PRICES BUT FOR SUCH DRUG MAKERS AS MERCK AND COMPANY ELI LILLY AND COMPANY WARNER LAMBERT COMPANY AND BRISTOL MYERS SQUIBB COMPANY THE TORPID PERFORMANCE REFLECTS THE CHANGES TAKING PLACE IN HEALTH CARE AS COST SAVING PROGRAMS AT GOVERNMENT AND PRIVATE HEALTH INSURANCE PLANS SPREAD AND TAKE HOLD THE LATEST U. S. LABOR DEPARTMENT DATA SHOW THAT PRESCRIPTION DRUG PRICES ROSE AN AVERAGE THREE POINT ONE PERCENT IN NINETEEN NINETY THREE COMPARED WITH EIGHT PERCENT TO TWELVE PERCENT A YEAR IN THE PREVIOUS DECADE THE INDUSTRY'S QUOTE ENGINE OF GROWTH IN THE NINETEEN EIGHTIES AGGRESSIVE PRICING OF ALL PHARMACEUTICALS HAS BEEN EFFECTIVELY ELIMINATED QUOTE SAID JOSEPH RICCARDO AN ANALYST WITH BEAR STEARNS AND COMPANY MR. RICCARDO SAID HALF OF THE INDUSTRY'S PROFIT MARGIN EXPANSION FROM NINETEEN EIGHTY TO NINETEEN NINETY THREE CAME FROM RAISING PRICES OF EXISTING PRODUCTS ANALYSTS AGREE THAT THE PRICING MOTOR WILL REMAIN STALLED FOR SEVERAL YEARS MEANING THAT ANNUAL AVERAGE PROFIT GROWTH WILL BE A MORE MODEST FIVE PERCENT TO TEN PERCENT THROUGH NINETEEN NINETY SIX ANY COMPANY COUNTING ON PRICE INCREASES SIMPLY IS NOT GOING TO HAVE SIGNIFICANT REVENUE GROWTH THESE DAYS SAID ROBERT INGRAM PRESIDENT AND CHIEF OPERATING OFFICER OF GLAXO HOLDING P. L. C.'S U. S. OPERATION DRUG BUYING SPECIALISTS AT MAJOR MANAGED HEALTH INSURANCE PLANS SAID THAT EVEN WITHOUT PRESSURE FROM WASHINGTON THEY HAVE BEGUN TO DEMAND PRICE DISCOUNTS FOR CERTAIN BIG SELLING MEDICINES THESE PLANS WHICH MANAGE PHARMACEUTICAL BENEFITS FOR MILLIONS OF U. S. EMPLOYEES ARE ENCOURAGING DOCTORS TO PRESCRIBE THE LEAST COSTLY MEDICINES BY CHOOSING INEXPENSIVE GENERIC VERSIONS OF BRAND NAME DRUGS OR BRAND NAME DRUGS BOUGHT AT BARGAIN PRICES THE WHOLE ARENA OF MANAGED CARE MEDICINE HAS VERY QUICKLY CHANGED THE DYNAMICS OF MARKETING PHARMACEUTICALS SAID CAROLINE DORSA A TOP MERCK MARKETING EXECUTIVE SHE SAID MANAGED CARE PLANS USING THE BARGAINING POWER OF LARGE EMPLOYEE POOLS ACCOUNTED FOR HALF OF MERCK'S SALES IN NINETEEN NINETY THREE UP FROM TWENTY PERCENT SEVERAL YEARS AGO MS. DORSA SAID MANAGED CARE WILL CLIMB TO SEVENTY FIVE PERCENT OF MERCK'S SALES BY NINETEEN NINETY NINE THE U. S.'S BIGGEST PHARMACY BENEFITS COMPANY MCKESSON CORPORATION'S P. C. S. PLAN MANAGES DRUG COVERAGE FOR FORTY MILLION PEOPLE AND EXPECTS THAT TO GROW TO FIFTY MILLION THIS YEAR P. C. S. EXECUTIVES SAID THAT IN THE NINETEEN NINETY THREE FIRST HALF PRICES IT PAID FOR MEDICINES WERE FLAT COMPARED WITH A YEAR AGO THAT FOLLOWS PRICE RISES OF TWO POINT FIVE PERCENT IN NINETEEN NINETY TWO FOUR POINT THREE PERCENT IN NINETEEN NINETY ONE AND SIX POINT FIVE PERCENT IN NINETEEN NINETY PRICE COMPETITION IS ESPECIALLY STIFF WHERE NUMEROUS CHOICES OF MEDICINES EXIST SUCH AS FOR TREATING HIGH BLOOD PRESSURE OR ULCERS A PHARMACEUTICAL BUYER AT ONE LARGE H. M. O. SAID THE PER TABLET PRICE IT PAID FOR MERCK'S HYPERTENSION DRUG LISINOPRIL FELL ALMOST SIX PERCENT IN NINETEEN NINETY THREE TO FIFTY TWO CENTS FROM ITS PRICE IN NINETEEN NINETY ONE THE DRUG'S PRICE SURGED TWENTY FIVE PERCENT IN NINETEEN NINETY ONE MERCK DECLINED TO COMMENT TO BE SURE CRITICS OF DRUG COMPANY PRICING NOTE THAT THE WHOLESALE LIST PRICES MANY SMALL OR INDEPENDENT PHARMACIES PAY FOR MEDICINES STILL ARE RISING FAST PRICES ARE CLIMBING SMARTLY FOR MEDICINES BOUGHT BY THE ELDERLY WHO MUST PAY FOR DRUGS THEMSELVES MEDICARE DOESN'T NOW COVER OUTPATIENT DRUG COSTS BUT THE CLINTON HEALTH PLAN PROPOSES TO EXTEND DRUG COVERAGE FOR MEDICARE RECIPIENTS IN EXCHANGE FOR A FIFTEEN PERCENT REBATE FROM DRUG MAKERS A REPORT FROM THE SENATE'S SPECIAL COMMITTEE ON AGING WHOSE CHAIRMAN DAVID PRYOR D. ARKANSAS HAS LONG ATTACKED DRUG PRICES SHOWS LIST PRICES IN NINETEEN NINETY THREE TYPICALLY ROSE ABOUT FIVE PERCENT TO EIGHT PERCENT WE AGREE THAT FOR SOME PEOPLE THE MARKETPLACE IS WORKING SENATOR PRYOR SAID BUT FOR THE MANY OUTSIDE THE MARKETPLACE POLITICAL PRESSURE MAY BE REQUIRED TO KEEP PRICES DOWN INDEED SOME LARGE PHARMACEUTICAL BUYING PLANS SAID THAT WHILE THE SPECIFIC PRICES THEY PAY FOR MEDICINES ARE RISING SLOWLY TOTAL COSTS PER PERSON COVERED IN THE PLAN WERE STILL GROWING WELL ABOVE INFLATION AS A RESULT OF RISING DRUG USE ESPECIALLY FOR NEW MEDICINES THAT ARE RELEASED WITH HIGHER PRICE TAGS THAN THE OLDER DRUGS THEY REPLACE GROUP HEALTH COOPERATIVE OF PUGET SOUND SAID ITS PER ENROLLEE COSTS ROSE ABOUT SEVEN PERCENT LAST YEAR ALTHOUGH THAT IS DOWN FROM THIRTEEN POINT TWO PERCENT IN NINETEEN NINETY TWO AND EIGHTEEN POINT TWO PERCENT IN NINETEEN NINETY ONE AS A RESULT THOSE DRUG MAKERS WITH A STEADY FLOW OF MEDICINES THAT PROVIDE A SIGNIFICANT BENEFIT OVER OTHER DRUGS DID WELL IN THE PAST QUARTER ANALYSTS SAID PFIZER EARNINGS SHOULD RISE TO ABOUT NINETY EIGHT CENTS A SHARE FROM EIGHTY FOUR CENTS A SHARE A YEAR AGO BASED ON SALES OF FIVE DRUGS WITH LITTLE COMPETITION SCHERING PLOUGH'S PROFIT SHOULD JUMP TO NINETY SEVEN CENTS A SHARE FROM EIGHTY FOUR CENTS BECAUSE OF ITS PREMIUM PRICED MEDICINES ANALYSTS SAID BOTH COMPANIES WOULDN'T COMMENT MEANWHILE MERCK'S PROFIT IS EXPECTED TO RISE TEN PERCENT TO FIFTY NINE CENTS A SHARE WHILE BRISTOL MYERS' PROFIT FROM CONTINUING OPERATIONS IS EXPECTED TO GROW ELEVEN PERCENT TO ONE DOLLAR AND TWELVE CENTS A SHARE BUT ANALYSTS PREDICTED THAT EARNINGS WILL RISE ONLY SIX PERCENT AT AMERICAN HOME PRODUCTS CORPORATION TO ONE DOLLAR AND TWENTY THREE CENTS A SHARE AND THAT EARNINGS AT ELI LILLY WOULD BE FLAT OR SLIGHTLY LOWER THAN THE YEAR EARLIER PERIOD AT NINETY FIVE CENTS TO ONE DOLLAR AND SIX CENTS A SHARE THOSE COMPANIES ALSO WOULDN'T COMMENT ANALYSTS SAID UPJOHN COMPANY AND MARION MERRELL DOW INCORPORATED WHOSE BIG SELLING DRUGS NOW HAVE SIGNIFICANT GENERIC DRUG COMPETITION WILL POST EARNINGS DECLINES UPJOHN'S PROFIT MAY DROP TEN PERCENT TO AS LOW AS SEVENTY SIX CENTS A SHARE SOME ANALYSTS SAID WHILE MARION'S PROFIT COULD FALL TWENTY PERCENT TO ABOUT FORTY TWO CENTS A SHARE THE COMPANIES SAID THEY WOULDN'T COMMENT FINALLY ANALYSTS SAID WARNER LAMBERT'S EARNINGS FROM CONTINUING OPERATIONS MAY DECLINE ABOUT FOURTEEN PERCENT TO EIGHTY EIGHT CENTS A SHARE AS A RESULT OF PRICING COMPETITION AND A LOSS OF SALES FOR CERTAIN PRODUCTS BECAUSE OF REGULATORY PROBLEMS AT A PLANT IN PUERTO RICO A SPOKESMAN SAID IT DIDN'T DISAGREE WITH ANALYST PROJECTIONS BRISTOL MYERS SQUIBB COMPANY MARKETS THE HYPERTENSION DRUG CAPTOPRIL THE DRUG'S MARKETER WAS INCORRECTLY IDENTIFIED AS MERCK AND COMPANY IN A CHART ACCOMPANYING AN ARTICLE YESTERDAY ABOUT FOURTH QUARTER EARNINGS ESTIMATES FOR PHARMACEUTICAL COMPANIES THE CHAIRMAN OF ALEXANDER AND ALEXANDER SERVICES INCORPORATED RESIGNED INCREASING THE LIKELIHOOD OF MAJOR CHANGES FOR THE STRUGGLING INSURANCE BROKER T. H. IRVIN SIXTY YEARS OLD WILL BE SUCCEEDED BY BOARD MEMBER ROBERT BONI SIXTY FIVE FORMER CHAIRMAN OF STEELMAKER ARMCO INCORPORATED MR. IRVIN WILL REMAIN CHIEF EXECUTIVE OFFICER UNTIL A SUCCESSOR IS FOUND FOR YEARS ALEXANDER AND ALEXANDER THE NATION'S SECOND LARGEST INSURANCE BROKER HAS REPORTED DISAPPOINTING EARNINGS AND A STEADY STREAM OF SPECIAL CHARGES MOST RECENTLY THE COMPANY TOOK A WRITE DOWN TO ACKNOWLEDGE ACCOUNTING IRREGULARITIES IN ITS BENEFITS CONSULTING BUSINESS MR. IRVIN WHO HAS BEEN WITH ALEXANDER FOR FORTY YEARS SAID HE AND THE BOARD DECIDED HE SHOULD STEP DOWN QUOTE TO ACCELERATE THE PACE OF CHANGE AND EFFECT IMPROVEMENTS IN OPERATIONS AND EARNINGS QUOTE THE COMPANY HAS BEGUN WHAT IT CALLED AN INTERNATIONAL SEARCH FOR A NEW CHIEF EXECUTIVE NEW MANAGEMENT IS LIKELY TO SPEED UP COST CUTTING THAT IS ALREADY UNDER WAY WHICH COULD MEAN MORE LAYOFFS ANALYSTS SAY ALEXANDER NOW EMPLOYS FOURTEEN THOUSAND TWO HUNDRED PEOPLE DOWN FROM EIGHTEEN THOUSAND IN NINETEEN EIGHTY SEVEN THE ONE DOLLAR A SHARE ANNUAL DIVIDEND IS ALSO IN JEOPARDY IN ADDITION ALEXANDER AND ALEXANDER MIGHT SEEK TO GET OUT OF CUSTOMER SEGMENTS THAT DON'T DELIVER STRONG PROFITS IT HAS ALREADY REDUCED ITS NUMBER OF SMALL CLIENTS BECAUSE OF THE HIGH COSTS OF SERVICING THAT BUSINESS THE CHANGES COULD BE DRAMATIC SAID FIRST BOSTON ANALYST VANESSA WILSON THE BOARD IS CLEARLY THINKING ABOUT SHAREHOLDER VALUE THE FACT THAT THEY'RE WILLING TO GET TOUGH IS A WHOLE CHANGE IN CULTURE AT THIS FIRM INSURANCE BROKERS ACT AS MIDDLEMEN BETWEEN INSURANCE BUYERS MOSTLY CORPORATIONS AND INSURANCE COMPANIES THEY MAKE MONEY ON BROKERAGE FEES AS WELL AS INTEREST INCOME EARNED ON THE INSURANCE PREMIUMS THEY COLLECT FROM CUSTOMERS AND PASS TO INSURANCE COMPANIES DESPITE CONTINUING PROBLEMS FROM PAST ACQUISITIONS ANALYSTS BELIEVE ALEXANDER AND ALEXANDER'S STRENGTHS MAKE IT ATTRACTIVE TO POTENTIAL ACQUIRERS WITH FIVE HUNDRED OFFICES AROUND THE COUNTRY A BLUE CHIP CLIENTELE AND REVENUE OF MORE THAN ONE BILLION DOLLARS A YEAR ANALYSTS THINK AGGRESSIVE MANAGEMENT COULD RAPIDLY INCREASE PROFITABILITY SOME OF ALEXANDER'S PROBLEMS HOWEVER ARE BEYOND ITS CONTROL A SIX YEAR SLUMP IN COMMERCIAL INSURANCE PRICES HAS DAMPED RESULTS AND UNCERTAINTY OVER HEALTH CARE REFORM HAS BEEN A DRAG ON ITS CONSULTING BUSINESS WHICH ACCOUNTS FOR ABOUT SIXTEEN PERCENT OF EARNINGS WINTERTHUR INSURANCE COMPANY SAID IT WILL ACQUIRE A MAJORITY STAKE IN GERMAN INSURER DBV HOLDING A. G. FROM GERMANY'S COMMERZBANK A. G. WHILE WINTERTHUR DECLINED TO DISCLOSE TOTAL VALUE OF THE TRANSACTION SOME ANALYSTS SUGGESTED THE MULTI STEP TRANSACTION MIGHT COST AROUND SEVEN HUNDRED MILLION SWISS FRANCS FOUR HUNDRED SEVENTY THREE POINT SIX MILLION DOLLARS WINTERTHUR HAS HAD TROUBLE EXPANDING MARKET SHARE IN GERMANY LAST MONTH WINTERTHUR SOLD ITS TWENTY EIGHT PERCENT STAKE IN THE SWISS MEDIUM SIZED INSURANCE COMPANY HELVETIA VERSICHERUNGEN WHICH HAS A STRONG MARKET POSITION IN GERMANY BECAUSE HELVETIA HAD VOWED TO REMAIN INDEPENDENT ALSO WINTERTHUR SWAPPED ITS THIRTY SEVEN POINT FOUR PERCENT HOLDING IN GERMANY'S NORDSTERN ALLGEMEINE VERSICHERUNGS A. G. FOR THREE PERCENT OF THE SHARE CAPITAL OF FRANCE'S UNION DES ASSURANCES DE PARIS KNOWN AS U. A. P. AFTER WINTERTHUR FAILED TO OBTAIN A MAJORITY POSITION IN NORDSTERN WITH THE DBV ACQUISITION THE SWISS COMPANY'S SHARE OF THE GERMAN MARKET WILL CLIMB TO AROUND THREE PERCENT FROM ONE PERCENT BEFORE WINTERTHUR SAID THAT COMMERZBANK IN A FIRST STEP WILL TRANSFER ITS MAJORITY STAKE OF FIFTY PERCENT PLUS ONE SHARE IN DBV HOLDING TO AN INTERMEDIATE HOLDING COMPANY TO BE JOINTLY OWNED BY WINTERTHUR AND COMMERZBANK WINTERTHUR WILL BECOME A MAJORITY SHAREHOLDER IN THAT INTERMEDIATE COMPANY TO BE CALLED COMMERZBANK SLASH WINTERTHUR HOLDING BY ACQUIRING A SEVENTY FIVE PERCENT INTEREST LESS ONE SHARE IN THE COURSE OF THIS YEAR WHILE COMMERZBANK WILL END UP WITH A TWENTY FIVE PERCENT HOLDING PLUS ONE SHARE IN THE FINAL STAGE OF THE TRANSACTION DBV WINTERTHUR HOLDING WILL BE CREATED WITH COMMERZBANK SLASH WINTERTHUR HOLDING OWNING A FIFTY PERCENT INTEREST PLUS ONE SHARE PUBLIC SHAREHOLDERS TWENTY FIVE PERCENT MINUS TWO SHARES AND THE DBV PUBLIC LEGAL INSTITUTE TWENTY FIVE PERCENT PLUS ONE SHARE WINTERTHUR SAID EVEN AS AFTERSHOCKS CONTINUE TO RUMBLE THROUGH SOUTHERN CALIFORNIA HOMEOWNERS ARE BEGINNING TO GRAPPLE WITH THE FINANCIAL CONSEQUENCES OF YESTERDAY'S DAMAGING EARTHQUAKE AND IF THE EXPERIENCES OF MIDWEST FLOOD VICTIMS LAST SUMMER AND HOMEOWNERS RAVAGED BY HURRICANE ANDREW IN NINETEEN NINETY TWO ARE ANY GUIDE THE PROCESS OF FILING INSURANCE CLAIMS IS LIKELY TO BE A LONG COMPLICATED PROCESS ONLY ABOUT TWENTY FIVE PERCENT OF CALIFORNIA HOMEOWNERS HAVE EARTHQUAKE INSURANCE BUT THAT DOESN'T MEAN VICTIMS OF THE QUAKE WITHOUT THIS SPECIAL COVERAGE HAVE NO HOPE OF GETTING MONEY TO REPAIR SERIOUS DAMAGE FIRE DAMAGE AND WATER DAMAGE THOUGH CAUSED BY THE EARTHQUAKE WILL BE COVERED UNDER HOMEOWNERS' INSURANCE POLICIES SAYS DAVID HURST PUBLIC RELATIONS SUPERINTENDENT FOR STATE FARM INSURANCE COMPANIES STRUCTURAL DAMAGE TO A HOME CAUSED BY AN EARTHQUAKE ISN'T COVERED BY HOMEOWNERS' INSURANCE POLICIES STILL INSURANCE PROFESSIONALS SAY HOMEOWNERS SHOULD CALL THEIR INSURANCE AGENT TO REPORT THEIR DAMAGE AND SHOULDN'T WORRY NOW WHETHER THEY HAVE EARTHQUAKE INSURANCE MAKING THE RIGHT MOVES EARLY CAN HASTEN THE PROCESS OF COLLECTING A CLAIM AND IMPROVE YOUR CHANCES OF COMING OUT WHOLE AFTER A DISASTER MANY HOMEOWNERS HAVEN'T PURCHASED EARTHQUAKE INSURANCE BECAUSE IT'S EXPENSIVE AND HAS A HIGH TEN PERCENT DEDUCTIBLE SAYS SEAN MOONEY A SPOKESMAN FOR THE INSURANCE INFORMATION INSTITUTE IN NEW YORK IT COSTS ABOUT THREE HUNDRED DOLLARS A YEAR FOR EARTHQUAKE INSURANCE THAT WOULD COVER TWO HUNDRED THOUSAND DOLLARS OF REPLACEMENT COSTS WITH THE DEDUCTIBLE A HOMEOWNER WOULD NEED DAMAGE EXCEEDING TWENTY THOUSAND DOLLARS TO COLLECT ANYTHING STATE FARM CALIFORNIA'S LARGEST EARTHQUAKE INSURER HAS DECLARED A THIRTY DAY MORATORIUM IN WRITING EARTHQUAKE INSURANCE POLICIES IN AN AREA COVERING A ONE HUNDRED MILE RADIUS OF THE EPICENTER IN THE SAN FERNANDO VALLEY OTHER COMPANIES ARE EXPECTED TO DO THE SAME AFTER A HOMEOWNER REPORTS THE DAMAGE TO AN AGENT THERE'S STILL PLENTY TO DO DON'T EXPECT A CLAIMS REPRESENTATIVE TO SHOW UP AT YOUR HOME SOON UNLESS YOU HAVE SEVERE DAMAGE THE REASON CLAIMS AGENTS TYPICALLY VISIT THE MOST SERIOUSLY DAMAGED HOMES FIRST AND WORK THEIR WAY DOWN IT'S A GOOD IDEA TO GO AHEAD AND MAKE TEMPORARY REPAIRS THAT WILL PROTECT YOUR PROPERTY LIKE PATCHING UP A ROOF OR COVERING AN EXPOSED WALL INSURANCE PROS SAY DON'T WAIT TO SEE IF YOU'RE COVERED BUT KEEP YOUR RECEIPTS FOR MATERIALS YOU BUY THEN GATHER FAMILY MEMBERS AND FRIENDS AND PREPARE A COMPLETE INVENTORY OF THE DAMAGE TO YOUR HOME AND POSSESSIONS DO ALL YOU CAN TO DOCUMENT THE LOSSES IF YOU HAVE A VIDEOCAMERA WALK AROUND THE HOME SHOOTING TAPE OF THE DAMAGE DESCRIBING IT AS YOU WALK IF YOU WERE FARSIGHTED ENOUGH TO DOCUMENT THE CONTENTS OF YOUR HOME IN A PREVIOUS VIDEOTAPE YOU'LL HAVE GREAT BEFORE AND AFTER FOOTAGE TO SHOW YOUR INSURANCE CLAIMS ADJUSTER OTHERWISE TAKE STILL PHOTOS AND MAKE LISTS OF DAMAGED ITEMS IF YOUR HOME WAS DESTROYED BY FIRE AS MANY SAN FERNANDO VALLEY HOMES WERE IN YESTERDAY'S EARTHQUAKE MAKE AN INVENTORY BY VISUALIZING THE CONTENTS ROOM BY ROOM ONE VICTIM OF THE NINETEEN NINETY ONE OAKLAND CALIFORNIA FIRE SAID THE KEY WAS MAKING THE INVENTORY RIGHT AFTER THE DISASTER AND THEN REPEATING IT THREE WEEKS LATER HE SAID HE AND HIS WIFE WERE ABLE TO REMEMBER EIGHTY PERCENT TO EIGHTY FIVE PERCENT OF THEIR BELONGINGS THE BIGGEST HASSLES WITH INSURANCE COMPANIES OVER THE OAKLAND FIRE CENTERED ON DOCUMENTATION OF THE COST OF ANTIQUES PAINTINGS AND OTHER EXPENSIVE ITEMS THAT WERE DIFFICULT TO VALUE SO BEGIN COLLECTING CANCELED CHECKS INVOICES AND RECEIPTS OR OTHER PAPERS THAT WILL PROVE THE VALUE OF THE DESTROYED ITEMS OR STRUCTURES ON YOUR PROPERTY WHEN THE INSURANCE CLAIMS ADJUSTER ARRIVES TAKE THE TIME TO EXPLAIN YOUR LOSSES FULLY SUSAN ROSS A MIAMI RESIDENT WHO WAS A VICTIM OF HURRICANE ANDREW IN NINETEEN NINETY TWO SAYS IT WAS IMPORTANT TO DESCRIBE TO HER ADJUSTER WATER DAMAGE THAT WAS HIDDEN BEHIND A COUCH ONE LESSON SHE SAYS SHE LEARNED QUOTE DON'T ASSUME YOUR ADJUSTER IS A MIND READER QUOTE KEEP GOOD NOTES OF YOUR DISCUSSIONS WITH THE ADJUSTER WRITING DOWN WHO SAID WHAT WHERE AND WHEN KEEPING A GOOD CHRONOLOGY IF YOU SHOW YOU ARE PAYING ATTENTION PROS SAY YOUR CHANCES OF GETTING A GOOD SETTLEMENT GO WAY UP IT'S A GOOD IDEA TO CONFIRM EVERYTHING IN WRITING AND SEND IMPORTANT DOCUMENTS TO THE INSURER VIA CERTIFIED MAIL WITH RETURN RECEIPT REQUESTED AS FOR REPAIRS AND REBUILDING BE ON THE ALERT FOR RIP OFFS GET ESTIMATES FROM LICENSED REPUTABLE CONTRACTORS MANY INSURANCE COMPANIES ALLOW THE HOMEOWNER TO COME UP WITH ESTIMATES FROM THREE CONTRACTORS TO DO REPAIRS FINALLY PERSIST WITH YOUR CLAIM UNTIL YOU ARE SATISFIED JANET TAYLOR A LOAN OFFICER FOR A SAN FRANCISCO CREDIT UNION SAYS SHE WENT THROUGH FOURTEEN DIFFERENT ADJUSTERS IN FOURTEEN MONTHS AFTER THE LOMA PRIETA CALIFORNIA EARTHQUAKE IN NINETEEN EIGHTY NINE HER INSURANCE COMPANY ORIGINALLY OFFERED HER ELEVEN THOUSAND DOLLARS BUT SHE FINALLY GOT EIGHTY NINE THOUSAND DOLLARS AFTER SHE HIRED HER OWN STRUCTURAL ENGINEER CALIFORNIA STATE INSURANCE COMMISSIONER JOHN GARAMENDI TOLD REPORTERS HE DOESN'T EXPECT THE SAME CLAIM PROBLEMS FROM YESTERDAY'S QUAKE WE'VE LEARNED A LOT FROM LOMA PRIETA HE SAID EARTHQUAKE VICTIMS CAN SPEED AN INSURANCE SETTLEMENT AND INCREASE THE AMOUNT RECOVERED BY FOLLOWING THESE STEPS CALL YOUR INSURANCE AGENT LET YOUR INSURANCE COMPANY KNOW THAT YOU'VE SUFFERED DAMAGE AND WHERE YOU CAN BE REACHED MAKE TEMPORARY REPAIRS PROTECT YOUR HOME FROM FURTHER DAMAGE BY MAKING NECESSARY EMERGENCY REPAIRS KEEP RECEIPTS TAKE PHOTOS OF DAMAGED AREAS PREPARE A DETAILED INVENTORY MAKE A LIST OF ALL DAMAGED OR DESTROYED PERSONAL PROPERTY INCLUDING THE AGE OF THE ITEMS THEIR COST AT THE TIME OF PURCHASE AND THEIR ESTIMATED REPLACEMENT COST TODAY COLLECT YOUR RECORDS GATHER CANCELED CHECKS INVOICES RECEIPTS OR OTHER PAPERS THAT WILL SHOW THE VALUE OF DESTROYED PROPERTY IF YOU MADE PHOTOS OR HOME VIDEOS THAT DOCUMENT YOUR BELONGINGS HAVE THEM READY TAKE NOTES KEEP GOOD NOTES OF YOUR DISCUSSIONS WITH THE INSURANCE ADJUSTER AVOID REPAIR RIP OFFS HIRE LICENSED REPUTABLE CONTRACTORS TO PROVIDE REPAIR ESTIMATES AND DO THE WORK MCKESSON CORPORATION SAID ITS P. C. S. HEALTH SYSTEMS UNIT HAS AGREED TO ACQUIRE A QUOTE SIGNIFICANT MINORITY INTEREST QUOTE IN INTEGRATED MEDICAL SYSTEMS INCORPORATED A CLOSELY HELD CONCERN THAT PROVIDES COMPUTER NETWORKS LINKING HEALTH CARE PROVIDERS THE INVESTMENT IN THE GOLDEN COLORADO COMPANY WILL BE ANNOUNCED TOMORROW SAID KEVIN MOLEY SENIOR VICE PRESIDENT OF P. C. S. IN AN INTERVIEW I. M. S. LINKS HEALTH CARE PROVIDERS SUCH AS PHYSICIANS HOSPITALS LABORATORIES AND PHARMACIES WITH MANAGED CARE ORGANIZATIONS AND HEALTH PLAN SPONSORS SWAPPING DATA OVER COMPUTER NETWORKS LIKE I. M. S.'S CAN CUT PAPERWORK AND COSTS AND IMPROVE HEALTH CARE QUALITY MR. MOLEY SAID A DOCTOR TIED INTO THE SYSTEM COULD FOR EXAMPLE USE A PERSONAL COMPUTER TO SEE IF A PLANNED PRESCRIPTION MIGHT BE SUBSTITUTED FOR A LOWER COST ALTERNATIVE TO CHECK WHETHER THE PATIENT HAS FILLED PREVIOUS PRESCRIPTIONS OR TO MAKE SURE THE PLANNED PRESCRIPTION DOESN'T CONFLICT WITH OTHER DRUGS PRESCRIBED TO THE PATIENT A DOCTOR COULD ALSO USE A PERSONAL COMPUTER TO TAP INTO THE SYSTEM AND RETRIEVE LAB RESULTS AND IMAGES SUCH AS FROM X. RAYS OR ELECTROCARDIOGRAMS HAVING THE LINK WITH I. M. S. WILL MAKE P. C. S. WHICH SELLS ITS DRUG PAYMENT SERVICES TO HEALTH ORGANIZATIONS AND SELF INSURED CORPORATIONS MORE ATTRACTIVE TO CUSTOMERS MR. MOLEY SAID EMPLOYERS AND OTHERS WANT TO PROVIDE HEALTH CARE IN A MORE EFFICIENT LOWER COST MANNER MR. MOLEY SAID AND ELECTRONICS IS ONE WAY TO DO THAT THE I. M. S. DEAL GIVES P. C. S. A LEG UP ON COMPETITORS MR. MOLEY SAID I. M. S. OPERATES THIRTY FOUR COMMUNITY HEALTH INFORMATION NETWORKS INCLUDING TWENTY THREE IN THE TOP FIFTY U. S. MARKETS I. M. S.'S NETWORKS ARE USED BY MORE THAN SEVEN THOUSAND FIVE HUNDRED DOCTORS UP FROM THREE THOUSAND THREE HUNDRED FIFTY IN NINETEEN NINETY TWO MR. MOLEY SAID THERE IS NO OTHER COMPANY THAT HAS THIS DEGREE OF CONNECTIVITY AS THIS SMALL COMPANY IN GOLDEN COLORADO MR. MOLEY SAID CHEMICAL MAKERS ESPECIALLY THOSE WITH BIG EXPOSURE TO THE RECESSION WRACKED EUROPEAN MARKETPLACE ARE EXPECTED TO SHOW SLUGGISH RESULTS FOR THE FOURTH QUARTER AS THEY ENDURE CONTINUED LOW PRICES ON BULK PLASTICS AND CHEMICALS WHILE UNIT VOLUME PERKED UP FOR MANY COMMODITY CHEMICAL PRODUCTS PARTICULARLY IN NORTH AMERICA PRICES REMAIN UNDER PRESSURE BECAUSE OF EXCESS GLOBAL CAPACITY QUOTE PURE COMMODITY CHEMICAL COMPANIES ARE GENERATING RAZOR THIN PROFITS BECAUSE OF THE LACK OF PRICING POWER QUOTE SAYS WERTHEIM SCHRODER AND COMPANY ANALYST CHRISTOPHER H. WILLIS ONE BIT OF GOOD NEWS FOR MAKERS OF COMMODITY CHEMICALS AND PLASTICS MANY OBSERVERS FEEL THAT THE LONG PRICE DOWNTURN MAY HAVE HIT BOTTOM IN THE LATTER PART OF NINETEEN NINETY THREE IT'S WIDELY EXPECTED HOWEVER THAT THE INDUSTRY COULD BUMP ALONG AT LOW LEVELS FOR SOME TIME AND THAT THE CLIMB OUT WILL BE SLOW WHILE EUROPE'S ECONOMY IS EXPECTED TO STRENGTHEN ONLY SLOWLY DOMESTIC DEMAND IS SHOWING MORE ZIP HELPED BY INCREASED ACTIVITY IN THE U. S. CONSTRUCTION AND AUTOMOTIVE SECTORS BOOSTED BY LOWER INTEREST RATES IMPROVEMENT IN THE U. S. HOUSING INDUSTRY HAS INCREASED DEMAND FOR SUCH PRODUCTS AS PLUMBING PIPES MADE OF POLYVINYL CHLORIDE COATINGS FOR ELECTRICAL WIRE AND ADHESIVES LEHMAN BROTHERS ANALYST THEODORE S. SEMEGRAN NOTES THAT THE INDUSTRY IS BECOMING MORE CONSUMER SENSITIVE THE HOUSING UPTURN INCLUDING INCREASED TURNOVER IN EXISTING HOMES ALSO BOOSTS DEMAND FOR CARPET FIBERS PLASTIC FOR CONSUMER DURABLES AND THE LIKE HE SAYS WHAT ACTUALLY HAS BECOME THE MARKET FOR CHEMICALS ARE APPLIANCES HOME FURNISHINGS AS WELL AS WHAT YOU MIGHT CALL THE SLIGHTLY MORE CYCLICAL AREAS SUCH AS HOUSING OR AUTOS MR. SEMEGRAN SAYS FOR PETROCHEMICAL MAKERS WHO USE PETROLEUM PRODUCTS AS FEEDSTOCK DECLINING OIL PRICES MIGHT BE EXPECTED TO HELP BUT ANALYSTS SAY THAT CURRENT PRICING FOR SUCH MAINSTAYS AS ETHYLENE AND PROPYLENE MAKES ANY SUCH BENEFIT MODEST COST CUTTING EFFORTS WILL STRENGTHEN MARGINS AT THE INCREASING NUMBER OF COMPANIES THAT INSTITUTED THEM DUPONT COMPANY IN WILMINGTON DELAWARE WILL NEED THE MARGIN BOOST WHILE SOME SEGMENTS OF ITS U. S. OPERATIONS ENJOYED INCREASED VOLUME IN THE JUST ENDED FOURTH PERIOD EARNINGS AT THE CONOCO ENERGY UNIT ARE UNDER PRESSURE FROM DECLINING OIL PRICES AND A RECENTLY SETTLED COAL STRIKE ANALYSTS ESTIMATE THAT DUPONT'S EARNINGS WILL HIT ABOUT FORTY SIX CENTS A SHARE DOW CHEMICAL COMPANY'S COST REDUCTIONS WILL ALSO PROVIDE SOME PAYOFF FOR THE MIDLAND MICHIGAN CONCERN ANALYSTS PREDICT BUT NEGATIVES INCLUDE ITS BIG EXPOSURE IN THE EUROPEAN MARKETPLACE AND IN THE COMMODITY SECTOR AS WELL AS CONTINUED SOFTNESS AT ITS SEVENTY ONE PERCENT OWNED MARION MERRELL DOW INCORPORATED DRUG SUBSIDIARY ANALYSTS EXPECT DOW TO EARN ABOUT THIRTY TWO CENTS A SHARE THAT EXCLUDES THE ONE HUNDRED NINETY TWO MILLION DOLLARS OR SEVENTY CENT A SHARE FOURTH QUARTER CHARGE THE CHEMICAL MAKER WILL TAKE AS ITS PORTION OF A CHARGE PLANNED BY ITS FIFTY PERCENT OWNED DOW CORNING JOINT VENTURE DOW CHEMICAL'S LATEST QUARTER IS ALSO EXPECTED TO REFLECT APPROXIMATELY A ONE HUNDRED MILLION DOLLAR PRETAX GAIN LINKED TO A CANADIAN UNIT'S ASSET DISPOSITION GEON COMPANY NOW COMPLETELY INDEPENDENT OF FORMER PARENT B. F. GOODRICH COMPANY EXPECTS TO REPORT BETTER THAN BREAK EVEN EARNINGS FOR THE SEASONALLY SLOW FOURTH QUARTER THAT MARKS A SUBSTANTIAL IMPROVEMENT OVER THE BIG OPERATING LOSS THE INDEPENDENCE OHIO COMPANY REPORTED AS A GOODRICH UNIT A YEAR AGO WERTHEIM SCHRODER'S MR. WILLIS WHO RECENTLY RAISED HIS EARNINGS PROJECTION TO FIVE CENTS A SHARE FROM BREAK EVEN NOTED THAT A FOURTH QUARTER PROFIT FOR GEON SPEAKS VOLUMES FOR THE MAJOR TURNAROUND THAT MANAGEMENT HAS ENGINEERED IN THE PAST TWO YEARS ANALYSTS ESTIMATE NINE CENTS A SHARE ANALYSTS HAD EXPECTED UNION CARBIDE CORPORATION TO REPORT PER SHARE EARNINGS OF ABOUT EIGHTEEN CENTS BUT YESTERDAY THE COMPANY SAID IT ANTICIPATES EARNINGS OF ABOUT TWENTY FIVE CENTS THE DANBURY CONNECTICUT CONCERN SAID THAT WHILE MARGINS FOR SOME OF ITS MAJOR PRODUCTS WERE DOWN FROM THE YEAR AGO PERIOD FOURTH QUARTER EARNINGS BENEFITED FROM CONTINUED REDUCTIONS IN FIXED COSTS AND INTEREST AS WELL AS STRONG PERFORMANCE FROM ITS PARTNERSHIPS AND CORPORATE JOINT VENTURES MONSANTO COMPANY WHICH BECAUSE OF SEASONAL FACTORS DOESN'T GET THE BIG PUSH IN THE FOURTH PERIOD FROM ITS AGRICULTURAL DIVISION THAT IT DOES IN SOME OTHER QUARTERS IS STILL EXPECTED TO SHOW SOLID IMPROVEMENT OVER THE YEAR AGO PERIOD THAT'S IN PART BECAUSE OF STRONGER SALES TO DOMESTIC AUTO MAKERS MODEST PROFITS FROM THE COMPANY'S SEARLE PHARMACEUTICALS UNIT AND COST REDUCTIONS ANALYSTS EXPECT EARNINGS OF ABOUT FORTY CENTS A SHARE COMPANIES THAT PRODUCE VALUE ADDED OR SPECIALIZED CHEMICALS WILL LIKELY ENJOY BRIGHTER RESULTS SUCH PRODUCTS WHICH TYPICALLY COMMAND A HIGHER MARGIN AREN'T AS SUBJECT TO THE OVERSUPPLY THAT IS PLAGUING THE COMMODITIES SECTOR WITH ALL THE OMINOUS RUMBLINGS COMING FROM EUROPE'S ECONOMIES IT'S EASY TO MISS THIS FRAIL WHISPER THE RECOVERY HAS BEGUN AFTER TWO YEARS OF RECESSION CORPORATE EXECUTIVES AND ECONOMISTS IN EUROPE AGREE THAT THE WORST IS OVER THOUGH IT COULD BE QUITE A WHILE BEFORE BUSINESS REALLY PICKS UP LOWER INTEREST RATES AND DEVALUED CURRENCIES HAVE BOOSTED EXPORTS AND ENCOURAGED STOCK MARKETS THE EUROPEAN UNION COMMISSION FORECASTS A ONE POINT THREE PERCENT INFLATION ADJUSTED EXPANSION AMONG ITS MEMBER COUNTRIES THIS YEAR AFTER A ZERO POINT FOUR PERCENT CONTRACTION IN NINETEEN NINETY THREE INFLATION MEANWHILE REMAINS SURPRISINGLY LOW GIVING EUROPE'S CENTRAL BANKS PLENTY OF ROOM TO SPUR THEIR ECONOMIES FURTHER IN NINETEEN NINETY FOUR QUOTE THE LOWEST POINT HAS BEEN REACHED AND CUSTOMERS ARE COMING BACK AND SPEEDING ORDERS QUOTE SAYS WILLY SNAED VICE PRESIDENT OF BELGIUM'S BEKAERT GROUP A BIG WIRE MAKER BASED IN KORTRIJK ALONG THE FRENCH BORDER THOUGH NOT EXPECTING SUBSTANTIAL IMPROVEMENT THE COMPANY SAYS THERE MAY BE SOME LIGHT CHUPA CHUPS A CLOSELY HELD CANDY MAKER IN SPAIN CAN ALREADY TASTE THE RECOVERY AFTER A FLAT NINETEEN NINETY THREE IT ANTICIPATES A TWENTY PERCENT TO THIRTY PERCENT INCREASE IN ITS TWO HUNDRED MILLION DOLLARS IN REVENUE THIS YEAR THE RESULT OF THE DEVALUATION IN THE PESETA I'M RELIEVED SAYS MIGUEL OTERO HEAD OF THE COMPANY'S INTERNATIONAL BUSINESS OVERALL ORDERS ARE A BIT IMPROVED ADDS MANFRED SOEHNLEIN HEAD OF ECONOMIC RESEARCH AT GERMAN MACHINERY MAKER MANNESMANN A. G. WHICH SAYS ITS PRODUCTION WILL RISE ONE POINT FIVE PERCENT TO TWO POINT FIVE PERCENT IN NINETEEN NINETY FOUR AFTER DECLINES IN NINETEEN NINETY TWO AND NINETEEN NINETY THREE WITH MOST NEW ORDERS COMING FROM OUTSIDE OF WESTERN EUROPE HOWEVER IT WILL TAKE A LOT OF TIME TO REACH PREVIOUS LEVELS THE U. S. ECONOMY MEANWHILE IS PICKING UP MOMENTUM EVEN WITHOUT THE BOOST IN DEMAND FOR ITS PRODUCTS THAT WOULD ACCOMPANY A EUROPEAN RECOVERY WITH U. S. MANUFACTURERS INCREASINGLY COMPETITIVE IN GLOBAL MARKETS GROWTH IN EUROPE COULD ONLY MAKE THINGS BETTER DESPITE THE SLUMP WESTERN EUROPE STILL ACCOUNTED FOR ABOUT ONE QUARTER OF ALL U. S. MERCHANDISE EXPORTS LAST YEAR THE OUTLOOK FOR THE U. S. HINGES CRITICALLY ON EXPORTS SAYS JERRY JASINOWSKI PRESIDENT OF THE NATIONAL ASSOCIATION OF MANUFACTURERS EXPORTS OF ALL KINDS NOW AMOUNT TO TEN PERCENT OF TOTAL OUTPUT IN THE U. S. SMALL BY EUROPEAN STANDARDS BUT SIGNIFICANT W. E. F. A. GROUP A BALA CYNWYD PENNSYLVANIA FORECASTING FIRM PREDICTS THAT THE U. S. ECONOMY WILL GROW BY A RESPECTABLE THREE PERCENT THIS YEAR PARTLY BECAUSE IT ANTICIPATES MODEST RECOVERIES IN EUROPE AND IN JAPAN LIKE THE U. S. AND BRITISH RECOVERIES BEFORE IT THE RECOVERY IN CONTINENTAL EUROPE WON'T BE VERY SATISFYING INITIALLY WITH UNEMPLOYMENT NEAR TWELVE PERCENT REAL INCOME FLAT AND MOST ECONOMIES FORECAST TO GROW AT A RATE OF ONE PERCENT OR LESS THIS YEAR NOT EVERYONE WILL SEE MUCH EVIDENCE OF RECOVERY AND WITH BIG STRUCTURAL PROBLEMS HINDERING EUROPEAN INDUSTRY AND STRETCHED GOVERNMENT BUDGETS IT COULD BE MORE THAN A YEAR BEFORE GROWTH REACHES RESPECTABLE LEVELS OF TWO PERCENT OR THREE PERCENT SAYS IAN MCCAFFERTY NATIONAL WESTMINSTER'S EUROPEAN ECONOMIST QUOTE WE'VE BOTTOMED OUT IN MUCH OF EUROPE AND IN THE FIRST HALF WE'LL SEE THE RESTORATION OF CONFIDENCE AND THE PICKUP OF ACTIVITY QUOTE STILL HE CAUTIONS AS FAR AS THE MAN ON THE STREET IS CONCERNED THAT'S NOT A PERCEPTIVE RECOVERY THERE ARE MANY CAVEATS IN FACT GROWTH THROUGHOUT THE CONTINENT WON'T COME NEAR LEVELS NEEDED TO REDUCE THE RANKS OF EUROPE'S TWENTY TWO MILLION UNEMPLOYED AND MUCH OF THE GOOD NEWS SO FAR HAS BEEN CONTRIBUTED BY GOVERNMENTS' FISCAL STIMULI AND EXPORTS RATHER THAN TRUE IMPROVEMENT THE EUROPEAN CONSUMER IT SEEMS IS STILL NAPPING MOREOVER EUROPE'S ECONOMIC RESTRUCTURING HAS ONLY JUST BEGUN IT COULD TAKE YEARS TO OVERCOME EUROPE'S RIGID LABOR MARKETS HIGH PRODUCTION COSTS HEAVILY REGULATED MARKETS LONG TERM UNEMPLOYMENT AND PUBLIC SECTOR DEBT IF NOT CORRECTED ECONOMISTS WARN THAT THE STRUCTURAL HANDICAPS COULD STUNT GROWTH THERE'S ALSO CONCERN THAT THE GOVERNMENT DEFICIT SPENDING USED TO STIMULATE THE RECOVERY COULD HAVE THE REVERSE EFFECT IF HEALTHY GROWTH DOESN'T FOLLOW SOON AT THE E. U. SUMMIT IN BRUSSELS LAST MONTH EUROPEAN LEADERS AGREED TO INCREASE ANNUAL SPENDING ON INFRASTRUCTURE PROJECTS TO TWENTY BILLION EUROPEAN CURRENCY UNITS TWENTY TWO POINT SIX BILLION DOLLARS FROM AN ALREADY BUDGETED TWELVE BILLION E. C. U.S TO HELP CREATE JOBS BUT IN BELGIUM AND ITALY WHERE GOVERNMENT DEBT EXCEEDS ONE HUNDRED PERCENT OF G. D. P. INTEREST PAYMENTS ALREADY EAT UP ABOUT A QUARTER AND A THIRD RESPECTIVELY OF THE GOVERNMENTS' BUDGETS HIGHER EXPORTS AREN'T ENOUGH BY THEMSELVES TO SPARK RECOVERY THOUGH SHIPMENTS ARE RISING THE BENEFITS ARE LIMITED BECAUSE WESTERN EUROPEAN COUNTRIES DO MORE THAN TWO THIRDS OF THEIR EXPORT TRADING WITH EACH OTHER BUT WHILE FEW DOUBT THESE FACTORS WILL SLOW THE GROWTH THERE'S AN EQUAL AMOUNT OF CONFIDENCE THAT THE ECONOMIES ARE GROWING ECONOMISTS AND GOVERNMENTS HAVE FORECAST GROWTH FOR VIRTUALLY EVERY COUNTRY IN EUROPE IN NINETEEN NINETY FOUR EVEN GERMANY THE LARGEST ECONOMY IN EUROPE AND THE WORST HIT BY THE RECESSION MAY FINALLY BE RECOVERING ALBEIT SLOWER THAN MANY OTHER COUNTRIES WESTERN GERMANY COULD SHOW A MODEST ZERO POINT FIVE PERCENT IMPROVEMENT SOME ECONOMISTS SAY THE GOVERNMENT'S INDEPENDENT COUNCIL OF ECONOMIC ADVISERS PERHAPS WEIGHING THE IMPACT OF NEW TAXES THIS YEAR FORECASTS ZERO GROWTH AFTER A CONTRACTION OF ONE POINT NINE PERCENT IN NINETEEN NINETY THREE G. D. P. IN BOTH THE SECOND AND THIRD QUARTERS SHOWED ZERO POINT FIVE PERCENT REAL GROWTH FROM THE PRECEDING QUARTER EASTERN GERMANY'S ECONOMY COULD SHOW ABOUT SEVEN PERCENT G. D. P. GROWTH THIS YEAR AFTER EXPANDING BY SIX POINT THREE PERCENT IN NINETEEN NINETY THREE THE GOOD NEWS FROM GERMANY IS THAT ANNUAL INFLATION IS SEEN SETTLING TO AROUND THREE PERCENT FROM A NINETEEN NINETY THREE AVERAGE OF THREE POINT FIVE PERCENT DESPITE CONTINUED HIGH GOVERNMENT SPENDING FOR GERMAN UNITY THE FEDERATION OF GERMAN INDUSTRY'S BUSINESS CLIMATE INDICATOR HAS SHOWN SEVERAL MONTHS OF IMPROVEMENT SAYS ECONOMIST SIEGFRIED UTZIG WE SEE MORE AND MORE POSITIVE ASPECTS IN THE ECONOMIC SITUATION AFTER SHRINKING BY ONE PERCENT IN NINETEEN NINETY THREE FRANCE'S G. D. P. SHOULD RISE ONE PERCENT IN NINETEEN NINETY FOUR INVENTORIES HAVE BEEN FALLING AND THE FRENCH HOUSING MARKET HAS SHOWN SOME LIFE COUNTRIES THAT BROKE FROM THE EUROPEAN MONETARY SYSTEM AND DEVALUED THEIR CURRENCIES ARE EXPECTED TO SEE EXPORT DRIVEN GROWTH EXCEEDING THAT OF THEIR NEIGHBORS THE E. U. COMMISSION EXPECTS THE U. K.'S ECONOMY TO EXPAND BY TWO POINT FIVE PERCENT THE LONDON BUSINESS SCHOOL'S CENTER FOR ECONOMIC FORECASTING SAYS ITALY'S ECONOMY COULD GROW BY TWO POINT FIVE PERCENT IN NINETEEN NINETY FOUR AFTER SLIPPING ZERO POINT ONE PERCENT LAST YEAR WHILE NATIONAL WESTMINSTER SEES SPAIN'S ECONOMY GROWING AT ONE POINT FOUR PERCENT AFTER A ONE POINT TWO PERCENT CONTRACTION ECOGEN INCORPORATED A BIOLOGICAL PEST CONTROL CONCERN SAID ITS MARKETING PARTNER IN PARIS RECEIVED PERMISSION TO MARKET TWO BIOINSECTICIDES IN FRANCE THE PARTNER PROCIDA ROUSSEL UCLAF RECEIVED CLEARANCE FOR BACILLUS THURINGIENSIS BASED PRODUCTS KNOWN AS CUTLASS WHICH WILL BE USED TO FIGHT GRAPE AND VEGETABLE CROP PESTS UNDER THE NAME ECOTECH BIO AND FOR CONDOR TO BE SOLD AS ECOTECH PRO AS PROTECTION AGAINST PINE TREE CATERPILLARS PROCIDA IS THE MARKETING DIVISION OF ROUSSEL UCLAF S. A. MIGRATION PATTERNS GROW EVER MORE COMPLEX AND POTENTIALLY TROUBLESOME UNIVERSITY OF MICHIGAN DEMOGRAPHER WILLIAM H. FREY ANALYZED NINETEEN NINETY CENSUS DATA TO SEE HOW IMMIGRATION AND MIGRATION FLOWS WITHIN THE U. S. AFFECTED STATES AND REGIONS BETWEEN NINETEEN EIGHTY FIVE AND NINETEEN NINETY DOCTOR FREY FOUND THAT HISPANIC ASIAN AND BLACK IMMIGRANTS FROM ABROAD PREDICTABLY CLUSTERED IN THE HALF DOZEN EASILY ACCESSIBLE STATES WITH LARGE MINORITY POPULATIONS CALIFORNIA NEW YORK TEXAS NEW JERSEY ILLINOIS AND MASSACHUSETTS AT THE SAME TIME HOWEVER RESIDENTS OF THESE STATES WERE LEAVING IN DROVES AND ALL BUT CALIFORNIA LOST SUBSTANTIALLY MORE PEOPLE TO OTHER STATES THAN THEY GAINED FROM THEM EVEN CALIFORNIA LONG A MECCA FOR RESIDENTS FROM OTHER STATES HAD AN UNUSUALLY SMALL INCREASE OF POPULATION GAIN FROM INTERNAL MIGRATION THOSE LEAVING THE SIX STATES INCLUDED STRIKINGLY LARGE NUMBERS OF LESS SKILLED LOWER INCOME WHITES SOME HAD LOST THEIR JOBS OFTEN TO IMMIGRANTS BUT DOCTOR FREY BELIEVES MANY WERE SEEKING TO DISTANCE THEMSELVES FROM THE NEWCOMERS OFTEN MOVING ONLY TO NEIGHBORING STATES AT THE OTHER END OF THE SCALE WERE STATES LARGELY IN THE SOUTHEAST AND THE WEST WHERE PEOPLE COMING IN FROM OTHER STATES FAR OUTNUMBERED THOSE LEAVING BIGGEST GAINERS WERE FLORIDA GEORGIA NORTH CAROLINA VIRGINIA WASHINGTON AND ARIZONA STRONG ECONOMIES AND SLASH OR GOOD CLIMATE WERE THE MAIN ATTRACTIONS EXCEPT FOR FLORIDA MOST HAD COMPARATIVELY LOW IMMIGRATION FROM ABROAD EVEN IN FLORIDA THE NET GAIN FROM INTERNAL MIGRATION WAS ALMOST THREE TIMES THAT FROM ABROAD AND THE ECONOMICALLY DEPRESSED STATES IN THE UPPER MIDWEST AND OIL PATCH SAW MINIMAL IMMIGRATION FROM ABROAD AND OTHER STATES BUT HAD LARGE OUTFLOWS OF RESIDENTS MICHIGAN OHIO IOWA OKLAHOMA AND LOUISIANA WERE AMONG THESE STATES THE EXODUS INCLUDED SUBSTANTIAL NUMBERS OF BETTER EDUCATED MEN AND WOMEN HEADING FOR GREENER PASTURES IN THE SOUTHEAST AND PACIFIC COAST DOCTOR FREY WORRIES ABOUT A QUOTE BALKANIZING QUOTE PATTERN EMERGING FROM THESE TRENDS HE WARNS THAT THE CONTINUATION OF THESE PROCESSES A MINORITY DOMINATED IMMIGRATION COUPLED WITH AN INTERNAL MIGRATION WHITE FLIGHT COULD LEAD TO SHARPLY DIVERGENT RACE AND SOCIODEMOGRAPHIC STRUCTURES ACROSS BROAD REGIONS AND STATES VIOLENT CRIME VICTIMS HAVE INCREASED SINCE NINETEEN SEVENTY THREE BUT THE NUMBER OF VICTIMS OF OTHER CRIMES HAS DECREASED THE GOVERNMENT'S BUREAU OF JUSTICE STATISTICS HAS ANALYZED TWENTY YEAR TRENDS SHOWN BY THE ANNUAL NATIONAL CRIME VICTIMIZATION SURVEY WHICH SINCE NINETEEN SEVENTY THREE HAS TRACKED CRIME BY INTERVIEWING LARGE NATIONAL SAMPLES OF HOUSEHOLDS THE SURVEY COVERS RAPE ROBBERY ASSAULT BURGLARY PERSONAL AND HOUSEHOLD THEFT AND MOTOR VEHICLE THEFT THE ANALYSIS REVEALS THAT THE NUMBER OF PEOPLE VICTIMIZED BY THE COVERED CRIMES HAD FALLEN SIX PERCENT BY NINETEEN NINETY TWO THERE WERE THIRTY FIVE POINT SEVEN MILLION VICTIMIZATIONS IN NINETEEN SEVENTY THREE THE NUMBER PEAKED AT FORTY ONE POINT FIVE MILLION IN NINETEEN EIGHTY ONE AND THEN DROPPED FAIRLY STEADILY TO THIRTY THREE POINT SIX MILLION IN NINETEEN NINETY TWO THE BIGGEST DECLINES CAME IN THEFTS FROM INDIVIDUALS AND HOMES VIOLENT CRIMES ROBBERY RAPE AND ASSAULT PRESENTED A DIFFERENT PICTURE UP TWENTY FOUR PERCENT BY NINETEEN NINETY TWO THE REPORT NOTED THAT BLACK MEN AND WOMEN PARTICULARLY TEENAGERS WERE VICTIMIZED BY VIOLENT CRIMES IN NINETEEN NINETY TWO AT THE HIGHEST RATES EVER RECORDED VICTIMIZATIONS OF WHITE TEENAGERS ALSO ROSE MALE VICTIMS OF VIOLENT CRIMES ARE FAR MORE LIKELY TO BE VICTIMIZED BY STRANGERS THAN BY ACQUAINTANCES THE BUREAU REPORTS BUT FEMALE VICTIMS ARE AS LIKELY TO BE VICTIMIZED BY A HUSBAND BOYFRIEND OR OTHER INTIMATE AS BY A STRANGER MOST VIOLENT CRIME VICTIMS ARE VICTIMIZED BY PEOPLE OF THE SAME RACE ABOUT SEVENTY FIVE PERCENT OF WHITE VICTIMS ARE VICTIMIZED BY WHITES AND ABOUT EIGHTY FIVE PERCENT OF BLACK VICTIMS ARE VICTIMIZED BY BLACKS HISPANIC OR LATINO IT'S A CONTROVERSIAL QUESTION THE CENSUS BUREAU AND OTHER FEDERAL AGENCIES USE THE TERM HISPANIC TO DESCRIBE AMERICANS WHOSE ORIGIN WAS IN THE SPANISH SPEAKING COUNTRIES OF THE WESTERN WORLD MANY OTHER PUBLIC AND PRIVATE GROUPS FOLLOW THAT LEAD MOST NEWS MEDIA GENERALLY USE HISPANIC WHEN DISCUSSING BROAD NATIONAL TRENDS BUT THOSE IN AREAS WITH LARGE POPULATIONS FROM MEXICO AND CENTRAL AMERICA OFTEN SWITCH TO LATINO WHEN REFERRING TO THE LOCAL COMMUNITY ACADEMICS AND LIBERAL GROUPS INCREASINGLY FAVOR LATINO THEY CLAIM IT MORE ACCURATELY DESCRIBES THE ORIGIN OF MOST SPANISH SPEAKING U. S. RESIDENTS MOREOVER THEY SAY HISPANIC BECAME OFFICIAL GOVERNMENT NOMENCLATURE DURING THE NIXON ADMINISTRATION AND THAT'S A MARK AGAINST IT MANY SPANISH SPEAKING GROUPS AREN'T HAPPY WITH EITHER AND PREFER TERMS INDICATING THEIR COUNTRY OF ORIGIN SUCH AS MEXICAN AMERICAN PUERTO RICAN OR CUBAN AMERICAN SPECIALISTS WHO HAVE DELVED INTO THE ISSUE SAY PREFERENCE TENDS TO VARY BY REGION AND SOCIOECONOMIC CLASS BUSINESSMEN AND THOSE WHO HAVE BEEN IN THE U. S. FOR MANY YEARS SEEM TO PREFER QUOTE HISPANIC QUOTE WHILE POORER GROUPS OR MORE RECENT IMMIGRANTS OPT FOR QUOTE LATINO QUOTE ACTUALLY THE SPECIALISTS SAY THE TWO TERMS COVER PRETTY MUCH THE SAME GROUPS BUT THAT DOESN'T LESSEN THE DEPTH OF FEELING OVER THE ISSUE SAYS ANDRES JIMINEZ DIRECTOR OF THE CALIFORNIA POLICY SEMINAR OF THE UNIVERSITY OF CALIFORNIA IT'S A MINEFIELD THE CENSUS BUREAU HAS CHOSEN THE SITES FOR A NINETEEN NINETY FIVE TEST OF SAMPLING AND OTHER NEW TECHNIQUES TO BE USED IN THE NEXT DECENNIAL CENSUS THEY ARE NEW HAVEN CONNECTICUT OAKLAND CALIFORNIA PATERSON N. J. AND SIX RURAL PARISHES IN NORTHWESTERN LOUISIANA ALMOST HALF OF ALL VISITS TO PSYCHIATRISTS ARE MADE BY PEOPLE BETWEEN TWENTY FIVE AND FORTY FOUR YEARS OLD ACCORDING TO A STUDY BY THE NATIONAL CENTER FOR HEALTH STATISTICS CONSUMER PRICES IN AUSTRIA ROSE ZERO POINT TWO PERCENT IN DECEMBER FROM NOVEMBER AND WERE UP THREE POINT FIVE PERCENT FROM THE YEAR EARLIER PERIOD THE CENTRAL OFFICE OF STATISTICS SAID IN NOVEMBER CONSUMER PRICES WERE ALSO UP THREE POINT FIVE PERCENT FROM A YEAR EARLIER THE STATISTICS OFFICE SAID IN DECEMBER THE CONSUMER PRICE INDEX STOOD AT ONE HUNDRED TWENTY TWO POINT EIGHT PRICES IN NINETEEN EIGHTY SIX ARE EQUAL TO ONE HUNDRED FOR ALL OF NINETEEN NINETY THREE INFLATION AVERAGED THREE POINT SIX PERCENT DOWN FROM FOUR POINT TWO PERCENT IN NINETEEN NINETY TWO THE CONSUMER PRICE INDEX IN NINETEEN NINETY THREE AVERAGED ONE HUNDRED TWENTY ONE POINT NINE UPJOHN COMPANY SAID A TRIAL INVOLVING TWO LIBEL SUITS FILED IN THE UNITED KINGDOM OVER NEWS REPORTS CRITICAL OF ITS SLEEPING DRUG HALCION OPENED YESTERDAY IN LONDON UPJOHN FILED A LIBEL SUIT IN JANUARY NINETEEN NINETY TWO AGAINST THE BRITISH BROADCASTING CORPORATION AND B. B. C. REPORTER TOM MANGOLD ON OCTOBER FOURTEENTH NINETEEN NINETY ONE THE B. B. C. AIRED A STORY ENTITLED QUOTE THE HALCION NIGHTMARE QUOTE ANOTHER SUIT WAS FILED AGAINST IAN OSWALD A SCOTTISH PSYCHIATRIST WHO MADE CRITICAL COMMENTS ABOUT UPJOHN AND THE DRUG IN A JANUARY NINETEEN NINETY TWO NEW YORK TIMES ARTICLE THE TIMES WASN'T SUED BOTH SUITS SEEK AN UNSPECIFIED AMOUNT OF DAMAGES CRITICS CLAIM HALCION USERS HAVE A HIGHER INCIDENCE OF ADVERSE REACTIONS INCLUDING ANXIETY AGGRESSIVE BEHAVIOR AND CONFUSION THAN USERS OF SIMILAR DRUGS UPJOHN HAS MAINTAINED THAT HALCION IS SAFE A THIRD SUIT FILED AGAINST LONDON'S SUNDAY EXPRESS NEWSPAPER OVER AN ARTICLE THAT RAN IN NINETEEN NINETY ONE WAS SETTLED BEFORE TRIAL AN UPJOHN SPOKESWOMAN SAID LEHMAN BROTHERS INTERNATIONAL NAMED FREDERICK C. APPEL MANAGING DIRECTOR IN CHARGE OF ITS EQUITY DERIVATIVES BUSINESS FOR EUROPE AND THE U. K. A NEWLY CREATED POST THE COMPANY SAID MR. APPEL'S APPOINTMENT EFFECTIVE AT THE END OF THE MONTH UNDERSCORES LEHMAN BROTHERS COMMITMENT TO DERIVATIVES ESPECIALLY IN THE INTERNATIONAL MARKETS MR. APPEL MOST RECENTLY WORKED FOR SALOMON BROTHERS INTERNATIONAL A UNIT OF SALOMON INCORPORATED AS HEAD OF U. K. EQUITY AND DERIVATIVES BUSINESS LEHMAN BROTHERS INTERNATIONAL LONDON IS A UNIT OF AMERICAN EXPRESS COMPANY'S LEHMAN BROTHERS UNIT THE RUBLE FELL THREE POINT FOUR PERCENT TO A RECORD LOW AGAINST THE DOLLAR IN MOSCOW AFTER SUNDAY'S RESIGNATION OF FIRST DEPUTY PRIME MINISTER YEGOR GAIDAR ARCHITECT OF RUSSIA'S ECONOMIC REFORMS MR. GAIDAR'S ANNOUNCEMENT AGGRAVATED WORRIES ON THE MOSCOW INTERBANK CURRENCY EXCHANGE THAT FOES OF ECONOMIC STABILIZATION POLICIES WERE GAINING THE UPPER HAND IN THE GOVERNMENT THE DOLLAR WAS FIXED AT ONE THOUSAND FOUR HUNDRED TWO RUBLES MONDAY UP FROM FRIDAY'S ONE THOUSAND THREE HUNDRED FIFTY SIX RUBLES THE PREVIOUS RECORD MONDAY OPENED WITH A TWENTY EIGHT MILLION DOLLAR IMBALANCE BETWEEN DEMAND FOR THE DOLLAR AND SUPPLY THE HUGE VOLUME OF BUY ORDERS DROVE THE RATE HIGHER TRADERS SAID PARTICIPANTS SAID CENTRAL BANK INTERVENTION APPEARED MODEST ALEXANDER AFONIN CHIEF DEALER AT CREDO BANK SAID THE FLURRY OF DOLLAR DEMAND SEEN MONDAY ISN'T LIKELY TO BE REPEATED IN THE COMING DAYS THOUGH BUYING WILL LIKELY REMAIN HEAVY BUT HE PREDICTED THAT IF THE GOVERNMENT DOESN'T PROVIDE SOME CLEAR SIGN THAT CURRENT FINANCIAL STABILIZATION POLICIES WILL CONTINUE THE RUBLE WILL DECLINE FURTHER WPI GROUP INCORPORATED SAID IT WILL ACQUIRE TERMIFLEX CORPORATION IN A STOCK SWAP WPI SAID IT EXPECTS A DEFINITIVE AGREEMENT TO BE SIGNED BY WEEK'S END UNDER WHICH TERMIFLEX SHAREHOLDERS WOULD RECEIVE ONE POINT TWO WPI COMMON SHARES FOR EACH TERMIFLEX SHARE THE VALUE OF THE PROPOSED TRANSACTION WASN'T GIVEN TERMIFLEX A MERRIMACK N. H. MAKER OF COMPUTER TERMINALS CURRENTLY HAS ABOUT ONE POINT THREE FIVE MILLION SHARES OUTSTANDING WPI A WARNER N. H. POWER CONVERSION COMPONENTS CONCERN HAS ABOUT THREE POINT SEVEN MILLION COMMON SHARES OUTSTANDING FIRST CHICAGO CORPORATION REPORTED A TWENTY SEVEN PERCENT INCREASE IN FOURTH QUARTER NET INCOME DRIVEN BY STRONG CREDIT CARD EARNINGS THE GAIN EXCEEDED ANALYSTS' EXPECTATIONS ON THE NEW YORK STOCK EXCHANGE YESTERDAY THE BANKING COMPANY'S STOCK CLOSED AT FORTY TWO POINT THREE SEVEN FIVE DOLLARS UP THIRTY SEVEN POINT FIVE CENTS IN COMPOSITE TRADING NET FOR THE QUARTER ROSE TO ONE HUNDRED SEVENTY TWO POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND EIGHTY ONE CENTS A SHARE FROM A YEAR EARLIER ONE HUNDRED THIRTY SIX POINT SIX MILLION DOLLARS OR ONE DOLLAR AND FIFTY THREE CENTS A SHARE PER SHARE EARNINGS ROSE SLIGHTLY LESS EIGHTEEN PERCENT DUE TO NINETEEN NINETY THREE'S INCREASED NUMBER OF SHARES OUTSTANDING FOR THE YEAR NET INCOME WAS EIGHT HUNDRED FOUR POINT FIVE MILLION DOLLARS UP FROM THE PREVIOUS YEAR'S NINETY THREE POINT FIVE MILLION DOLLARS IN SPITE OF GROWING COMPETITION AMONG CREDIT CARD ISSUERS FIRST CHICAGO'S CREDIT CARD RECEIVABLES GREW BY ELEVEN PERCENT TO TEN POINT SEVEN BILLION DOLLARS FROM THE THIRD QUARTER QUOTE CREDIT CARDS ARE THE KEY FUNDAMENTAL QUOTE SAID ART SOTER A BANK ANALYST WITH MORGAN STANLEY AND COMPANY IT'S THE MOST PROFITABLE MAJOR BUSINESS THEY HAVE AND IT'S THEIR GREATEST GROWTH BUSINESS FIRST CHICAGO WAS ONE OF THE FIRST ISSUERS TO INTRODUCE NO FEE CARDS THEY KNOW HOW TO SEGMENT THE MARKET MR. SOTER SAID AND THEY HAVE A PRETTY LOW COST OPERATION IN AN INTERVIEW RICHARD L. THOMAS THE BANK'S CHAIRMAN SAID WE THINK WE ARE ONE OF THE BEST IN TERMS OF EFFICIENCY SOME ANALYSTS HOWEVER EXPRESSED CONCERN THAT THE BANK'S EARNINGS ARE OVERLY DEPENDENT ON THE CARD BUSINESS WHEN VENTURE CAPITAL EARNINGS ARE EXCLUDED JUDAH KRAUSHAAR AN ANALYST WITH MERRILL LYNCH AND COMPANY ESTIMATED THAT THE CARD BUSINESS CONTRIBUTES MORE THAN FORTY PERCENT OF THE COMPANY'S PROFIT MR. THOMAS HOWEVER PLAYED DOWN THE CONCERN THE QUESTION DOES ARISE HOW BIG A CREDIT CARD BUSINESS SHOULD WE HAVE BUT THAT IS A GOOD PROBLEM TO HAVE IT'S A GOOD BUSINESS VENTURE CAPITAL INVESTMENTS WHICH PROVIDED MORE THAN ONE THIRD OF THE BANK'S PROFIT IN THE PAST TWO YEARS PRODUCED A MODEST PROFIT IN THE QUARTER REFLECTING BOTH SALES AND CHANGES IN MARKET VALUE ALTHOUGH THE BANK'S LARGEST HOLDING NINE POINT FIVE MILLION SHARES OF NEXTEL COMMUNICATIONS INCORPORATED FELL IN VALUE DURING THE QUARTER PROFIT FROM OTHER INVESTMENTS WAS LARGE ENOUGH TO PRODUCE AN OVERALL GAIN OF SEVEN MILLION DOLLARS DOWN FROM FORTY EIGHT MILLION DOLLARS IN THE YEAR EARLIER QUARTER TOTAL EQUITY SECURITIES GAINS WERE FORTY MILLION DOLLARS DOWN FROM A YEAR EARLIER EIGHTY NINE POINT TWO MILLION DOLLARS THE BANK'S ASSET QUALITY CONTINUED TO IMPROVE DURING THE PERIOD AS OF THE END OF THE YEAR EIGHTY NINE PERCENT OF THE PORTFOLIO SLATED FOR DISPOSITION HAD BEEN LIQUIDATED AND NONPERFORMING LOANS WERE TWO HUNDRED SEVENTY SEVEN MILLION DOLLARS DOWN FROM THREE HUNDRED FIFTY ONE MILLION DOLLARS AT THE END OF THE PREVIOUS QUARTER THE FOURTH QUARTER LOAN LOSS PROVISION WAS SEVENTY MILLION DOLLARS DOWN FROM A YEAR EARLIER EIGHTY MILLION DOLLARS QUOTE THIS WAS THE QUARTER WHEN THE BANK REALLY PUT THE ASSET QUALITY PROBLEMS BEHIND IT QUOTE SAID HENRY DICKSON AN ANALYST WITH SMITH BARNEY SHEARSON INCORPORATED THE BANK'S TOTAL ASSETS WERE FIFTY TWO POINT SIX BILLION DOLLARS AT THE END OF NINETEEN NINETY THREE UP FROM A YEAR EARLIER FORTY NINE POINT THREE BILLION DOLLARS G. T. E. CORPORATION AND AMERICAN TELEPHONE AND TELEGRAPH COMPANY SAID THEY WILL BEGIN TESTING INTERACTIVE VIDEO SERVICES IN MANASSAS VIRGINIA IN LATE NINETEEN NINETY FOUR THE COMPANIES SAID BY MID NINETEEN NINETY FIVE THEY WILL OFFER ONE THOUSAND G. T. E. CUSTOMERS INTERACTIVE SERVICES SUCH AS HOME SHOPPING AND EDUCATIONAL PROGRAMMING THE SERVICES WILL RUN ON A VIDEO DIALTONE NETWORK THAT COULD PROVIDE MORE THAN FIVE HUNDRED CHANNELS OF DIGITAL PROGRAMMING THE SYSTEM WHICH WOULD USE G. T. E.'S FIBER OPTIC NETWORK AND A. T. AND T. COMPUTER VIDEO SERVERS IS STILL WAITING FOR GOVERNMENT APPROVALS THE COMPANIES SAID G. T. E. STAMFORD CONNECTICUT AND A. T. AND T. WHICH IS BASED HERE SAID THEY SELECTED THE MANASSAS AREA BECAUSE OF A DECISION BY THE U. S. DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA LAST YEAR THE COURT DECLARED THE VIDEO PROGRAMMING SECTION OF THE NINETEEN EIGHTY FOUR CABLE ACT UNCONSTITUTIONAL PAVING THE WAY FOR SUCH SERVICE OFFERINGS FROM PHONE COMPANIES THE VIRUS THAT BRINGS ON SNEEZES ACHES AND COUGHS IS ABOUT TO DO A LOT OF GOOD IN A WARREN OF LABORATORIES TUCKED AWAY IN A NEW YORK HOSPITAL CORNELL MEDICAL CENTER BUILDING OVERLOOKING THE EAST RIVER A SMALL CREW OF SCIENTISTS IS BREWING UP HUNDREDS OF MILLIONS OF COPIES OF A VIRUS THAT CAN CAUSE THE COMMON COLD BUT UNLIKE THE QUOTE WILD QUOTE VIRUSES THAT CAUSE HEADACHES FEVER STOMACH ILLS AND THE REST THESE LABORATORY VIRUES HAVE BEEN TAMED THEIR COLD CAUSING STINGERS SNIPPED OUT THESE CRIPPLED VIRUSES ARE ABOUT TO BE ENLISTED IN HUMANKIND'S WAR AGAINST BRAIN CANCER INHERITED DISEASES HEART ATTACKS AND A HOST OF OTHER LIFE THREATENING AND VEXING AILMENTS THE RESEARCHERS HAVE LEFT INTACT THE VIRUS'S ABILITY TO DEFTLY WRIGGLE INTO CERTAIN HUMAN CELLS IT IS THIS CELL INFECTING CHARACTERISTIC THAT SCIENTISTS HERE AND IN A HANDFUL OF OTHER RESEARCH LABS ARE TRYING TO EXPLOIT THEY HOPE TO USE THE VIRUS TO FERRY DISEASE FIGHTING GENES INTO REGIONS OF THE HUMAN BODY GENERALLY INACCESSIBLE TO MODERN MEDICINES THE COMMON COLD VIRUS MAY TURN OUT TO BE ONE OF THE MOST EFFECTIVE NEW WAYS OF DELIVERING MEDICINE THERE IS SAYS RONALD CRYSTAL WHO DIRECTS NEW YORK HOSPITAL'S VIRUS TINKERING PROGRAM THE MEDICINE IN THIS CASE IS PRODUCED BY GENES GENES REPRESENT THE MOLECULAR BLUEPRINT USED BY CELLS TO PRODUCE PROTEINS SUCH AS ENZYMES AND HORMONES THAT CARRY OUT THE SECOND BY SECOND CHEMICAL FUNCTIONS OF LIFE BY TRANSPLANTING SPECIFIC GENES DIRECTLY INTO CLUSTERS OF HUMAN CELLS SCIENTISTS HOPE TO INDUCE THE CELLS TO PRODUCE NEW THERAPEUTIC PROTEINS THAT ARE EITHER SAFER AND MORE EFFECTIVE THAN MEDICINES PRODUCED IN DRUG FACTORIES OR CAPABLE OF DOING A JOB THAT CANNOT BE DONE BY ANY MAN MADE MEDICINES THIS NEW VIRUS AIDED TECHNIQUE IS BEHIND THE SUDDEN EXPLOSION OF GENE THERAPY EXPERIMENTS AT THE MOMENT THERE ARE SIXTY EIGHT GOVERNMENT SANCTIONED HUMAN EXPERIMENTS INVOLVING GENE THERAPY PLANNED OR UNDER WAY UP FROM TWENTY SIX LAST YEAR A PRINCIPAL REASON FOR THIS IS A FLURRY OF NEW FINDINGS MADE BY DOCTOR CRYSTAL AND OTHERS ABOUT THE COMMON COLD VIRUS KNOWN FORMALLY AS THE ADENOVIRUS DOCTOR CRYSTAL WHO SPENT TWENTY YEARS AT THE NATIONAL INSTITUTES OF HEALTH COOKING UP NEW THERAPIES AGAINST POORLY TREATED RESPIRATORY ILLNESSES BEFORE HE MOVED TO NEW YORK LAST YEAR APPRECIATES THE IRONY OF HARNESSING ONE OF HIS LONGTIME ARCHENEMIES IT'S NOT SURPRISING THAT I WAS ATTRACTED TO THE ADENOVIRUS SAYS DOCTOR CRYSTAL LIKE EVERYONE RESEARCHING PULMONARY DISEASE I'VE STUDIED IT EXTENSIVELY MUCH WAS KNOWN ABOUT THE VIRUS AND HOW IT GETS INSIDE CELLS WHAT'S BEEN A TRUE SURPRISE IS WHAT AN EXTRAORDINARILY VERSATILE THERAPEUTIC AGENT IT'S TURNING OUT TO BE THE DEACTIVATED VIRUS ALSO MAY BE SAFER TO USE IN TRANSPLANTING GENES THAN ANOTHER VIRUS SCIENTISTS HAVE USED IN EARLY EXPERIMENTS UNLIKE THE OTHER VIRUS THE ADENOVIRUS DOESN'T THRUST ITS GENES INTO THE CELL'S OWN SENSITIVE D. N. A. OR GENETIC MATERIAL INSTEAD THE VIRUS DEPOSITS THE GENE ALONGSIDE THE D. N. A. WHERE IT CHURNS OUT ITS DESIGNATED PROTEINS WITHOUT CHANGING THE CELL'S OWN GENETICS SCIENTISTS WORKING WITH THE COLD BUG ALSO LIKE IT BECAUSE INFECTED CELLS GENERALLY SPIT OUT THE VIRUS WITHIN WEEKS MEANING THE VIRUS AND ITS TRANSPLANTED GENE HAVE ONLY A TEMPORARY EFFECT LAST YEAR DOCTOR CRYSTAL HELPED MAKE SCIENTIFIC HISTORY WHEN HIS N. I. H. LAB USED THE ADENOVIRUS FOR THE FIRST HUMAN GENE THERAPY FOR CYSTIC FIBROSIS CYSTIC FIBROSIS IS AN INHERITED DISEASE INVOLVING A DEFECTIVE GENE IN CELLS THAT LINE THE LUNG'S TINY AIR PASSAGES BECAUSE OF THE GENETIC DEFECT THE LUNGS ARE UNABLE TO MAKE A PROTEIN THAT KEEPS THE AIRWAYS CLEAR OF MUCUS AS A RESULT THE LUNGS OF CYSTIC FIBROSIS PATIENTS BECOME CLOGGED WITH A THICK MUCUS LIKE SUBSTANCE THAT RENDERS THE PATIENTS HIGHLY SUSCEPTIBLE TO DANGEROUS BACTERIAL INFECTIONS BACK IN NINETEEN EIGHTY NINE ABOUT THE TIME SCIENTISTS DISCOVERED THE CYSTIC FIBROSIS GENE DOCTOR CRYSTAL GOT THE IDEA OF USING THE COMMON COLD VIRUS TO REPAIR THE LUNG CELLS' GENETIC FLAW QUOTE I WAS JOGGING ONE DAY AND IT HIT ME QUOTE SAYS DOCTOR CRYSTAL THE ADENOVIRUS TARGETS THE VERY SAME CELLS AS ARE DAMAGED IN CYSTIC FIBROSIS IT SEEMED LIKE A NATURAL WAY TO DELIVER THE MISSING GENE IN A SERIES OF TEST TUBE AND ANIMAL EXPERIMENTS OVER THE NEXT FEW YEARS DOCTOR CRYSTAL AND HIS COLLEAGUES FOUND THEY COULD SUCCESSFULLY HITCH A VARIETY OF HUMAN GENES TO THE ADENOVIRUS IN ANIMAL TESTS ALTERED VIRUS INJECTED INTO THE LUNGS VIA A LONG CATHETER HOMED IN ON THE AIRWAY CELLS AND TRIGGERED THE CELLS TO MANUFACTURE THE MISSING AIRWAY CLEARING PROTEIN IN THE HUMAN TESTS CONDUCTED IN RECENT MONTHS THE RESEARCHERS FOUND EVIDENCE THAT THE VIRUS INSERTED THE GENE IN ABOUT FIVE PERCENT OF TARGETED LUNG CELLS ONLY ONE OF THE FOUR TREATED PATIENTS DEVELOPED A DISTURBING FLULIKE ILLNESS BUT DOCTOR CRYSTAL BELIEVES THAT WAS CAUSED BY USING HIGHER DOSES OF THE VIRUS THAN WAS NECESSARY NEW TESTS PLANNED ON ABOUT A DOZEN MORE PATIENTS WILL DETERMINE IF THE IMPLANTED GENE PRODUCES ENOUGH PROTEIN TO KEEP THE LUNGS CLEAR OF EQUAL IMPORTANCE DOCTOR CRYSTAL SAYS RESEARCHERS WERE SURPRISED TO FIND IN THEIR EXPERIMENTS THAT THE ADENOVIRUS WAS ABLE TO TARGET CELLS THAT LINE NUMEROUS OTHER ORGANS SUCH AS THE BRAIN THE LIVER AND THE HEART SUDDENLY WE REALIZED WE HAD THIS PHENOMENAL DELIVERY TOOL SAYS DOCTOR CRYSTAL TO GENERATE THE FUNDS NEEDED TO EXPLOIT THE VIRUS DOCTOR CRYSTAL HELPED FORM A NEW CLOSELY HELD COMPANY CALLED GENVEC INCORPORATED WHICH IS BASED IN BETHESDA MARYLAND NEAR THE N. I. H. AND IS PARTLY OWNED BY GENENTECH INCORPORATED OF SOUTH SAN FRANCISCO CALIFORNIA IN ONE SET OF ANIMAL EXPERIMENTS CONDUCTED AT THE N. I. H. AND NEW YORK LABS DOCTOR CRYSTAL'S TEAM FOUND THE VIRUS CAN INFECT CELLS THAT LINE CORONARY ARTERIES THE SCIENTISTS HOPE THIS DISCOVERY WILL LEAD TO A WAY TO COUNTER A PROBLEM THAT OFTEN DEVELOPS AFTER A PROCEDURE CALLED ANGIOPLASTY IN WHICH DOCTORS INFLATE A TINY BALLOON AT THE TIP OF A CATHETER TO PRY OPEN CORONARY ARTERIES THAT HAVE BEEN BLOCKED BY THE FATTY DEPOSITS OF HEART DISEASE THE PROBLEM IS THAT ANGIOPLASTY CAN WOUND THE ARTERY'S SMOOTH INNER LINING TRIGGERING THE RAPID GROWTH OF SCAR TISSUE THAT IN TURN CAN RECLOG THE ARTERY DOCTOR CRYSTAL'S LAB IS NOW TESTING SEVERAL GENES THAT MIGHT BE INSERTED INTO THE INNER WALL OF AN ARTERY WHERE THEY WILL TEMPORARILY PRODUCE PROTEINS TO PREVENT OR SLOW THE SCARRING IN ANOTHER TEST THE SCIENTISTS BELIEVE THEY CAN IMPROVE THE BENEFITS OF HEART BYPASS SURGERY BY INJECTING GENES THAT PROMOTE THE RAPID GROWTH OF NEW BLOOD VESSELS AROUND DAMAGED ARTERIES THESE NEW VESSELS WOULD CARRY OXYGEN NOURISHING BLOOD TO PARTS OF THE HEART MUSCLE THAT ARE BEYOND THE HELP OF BYPASS SURGERY AND IN STILL ANOTHER SET OF EXPERIMENTS SCIENTISTS HAVE FOUND THAT THE ADENOVIRUS CAN CARRY CANCER FIGHTING PROTEINS TO THE SITE OF A TUMOR IN EXPLOITING BASIC RESEARCH BY SCIENTISTS AT HARVARD SCHOOL OF MEDICINE AND THE UNIVERSITY OF CHICAGO GENVEC IS DEVELOPING AN ADENOVIRUS CARRYING A GENE THAT WILL TURN ON WHEN HIT BY A TINY BURST OF RADITION THE TURNED ON GENE PRODUCES A PROTEIN THAT KILLS CANCER CELLS SUCH A TRICK COULD LIMIT EFFECTS CAUSED BY THE PROTEIN AND ALSO REDUCE THE AMOUNT OF RADIATION USED TO DESTROY A TUMOR AND THEREBY LIMIT DAMAGE TO HEALTHY TISSUE THE BEST SITE FOR THIS TREATMENT IS BRAIN CANCER FOR WHICH CURRENT TREATMENTS ARE LIMITED DOCTOR CRYSTAL SAYS QUOTE IF IT WORKS WE HOPE TO TARGET OTHER CANCERS TOO QUOTE WITH THE EXCEPTION OF BLACKS THE NUMBER OF MINORITIES WHO RECEIVED DOCTORATES INCREASED SUBSTANTIALLY BETWEEN NINETEEN EIGHTY TWO AND NINETEEN NINETY TWO ACCORDING TO THE AMERICAN COUNCIL ON EDUCATION OVERALL TWENTY SEVEN PERCENT MORE MINORITIES EARNED P. H. D.S IN NINETEEN NINETY TWO THAN TEN YEARS EARLIER WHILE THE OVERALL NUMBER OF DOCTORATES CLIMBED ABOUT SIX PERCENT THE GROUP SAID MINORITIES ACCOUNTED FOR TWO THOUSAND SIX HUNDRED EIGHTY TWO OF THE TWENTY FIVE THOUSAND SEVEN HUNDRED FIFTY NINE DOCTORATES AWARDED IN NINETEEN NINETY TWO ASIANS HAD AN EIGHTY THREE PERCENT GAIN RECEIVING EIGHT HUNDRED TWENTY EIGHT DOCTORATES IN NINETEEN NINETY TWO UP FROM FOUR HUNDRED FIFTY TWO IN NINETEEN EIGHTY TWO WHILE HISPANICS HAD A FORTY ONE PERCENT GAIN TO SEVEN HUNDRED FIFTY FIVE FROM FIVE HUNDRED THIRTY FIVE NATIVE AMERICANS NEARLY DOUBLED THEIR NUMBERS TO ONE HUNDRED FORTY EIGHT FROM SEVENTY SEVEN A DECADE EARLIER BUT BLACKS SAW A NINE POINT TWO PERCENT DECLINE FINISHING NINETEEN NINETY TWO WITH NINE HUNDRED FIFTY ONE DEGREES EARNED COMPARED WITH ONE THOUSAND FORTY SEVEN IN NINETEEN EIGHTY TWO THE DROP WAS DUE TO A SHARP FALL IN DEGREES AWARDED TO BLACK MALES WHO HAD A TWENTY PERCENT DECLINE BLACK FEMALES SHOWED MINIMAL GAINS P. H. D.S IN EDUCATION CONTINUED TO BE THE MOST POPULAR DOCTORATES AMONG MINORITIES ACCOUNTING FOR TWENTY NINE PERCENT OF MINORITY DOCTORATES THE REPORT SAID MEANWHILE THE CONGRESSIONAL GENERAL ACCOUNTING OFFICE HAS CONCLUDED THAT FEWER THAN FIVE PERCENT OF ALL UNDERGRADUATE AND GRADUATE SCHOLARSHIPS WERE TARGETED TO MINORITIES IN THE NINETEEN NINETY ONE TO NINETY TWO SCHOOL YEAR TWO DARK HORSE CANDIDATES HAVE SURFACED AS POSSIBLE SUCCESSORS TO EUGENE M. FREEDMAN WHO WILL RETIRE THIS FALL AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF COOPERS AND LYBRAND THE TWO NEW NAMES BEING MENTIONED AT THE FIFTH BIGGEST U. S. ACCOUNTING FIRM ARE NICHOLAS G. MOORE THE FIFTY ONE YEAR OLD VICE CHAIRMAN CLIENT SERVICE BASED IN SAN JOSE CALIFORNIA AND SAMUEL DI PIAZZA THE FORTY THREE YEAR OLD QUOTE CLUSTER QUOTE OR REGIONAL MANAGING PARTNER IN CHICAGO THREE VICE CHAIRMEN WILLIAM O'BRIEN JOHN ROBERTS AND STEPHEN MCKESSY HAVE BEEN MENTIONED AS STRONG CANDIDATES VINCENT O'REILLY CHIEF OPERATING OFFICER MIGHT ALSO RUN SOME PARTNERS THINK MR. MOORE AND MR. DI PIAZZA ARE BOTH LOWER KEYED THAN THE SIXTY ONE YEAR OLD MR. FREEDMAN WHO IS CONSIDERED STRONG WILLED AND THRIVES IN A TURBULENT ATMOSPHERE ACCORDING TO SEVERAL COOPERS PARTNERS MR. FREEDMAN WANTED TO KEEP THE JOB HIMSELF SO HE DID NOT AS IS CUSTOMARY AT MAJOR ACCOUNTING FIRMS SELECT A SUCCESSOR MR. FREEDMAN FAILED TO RECEIVE STRONG ENOUGH SUPPORT FOR A RE ELECTION EFFORT FROM THE FIRM'S PARTNERS THEREFORE THE RACE FOR CHAIRMAN IS WIDE OPEN AND CANDIDATES WITH DIFFERENT STYLES THAN GENE FREEDMAN AND WHO HAVEN'T RUN BEFORE LIKE NICK MOORE AND SAM DI PIAZZA HAVE A GOOD CHANCE FOR THE JOB ACCORDING TO A MEMBER OF COOPERS' RULING COUNCIL WHO DECLINES TO BE IDENTIFIED AN ELECTION WILL BE HELD IN MAY AND THIS TIME THE PARTNERS MAY BE ASKED TO CHOOSE FROM THREE OR FOUR CANDIDATES RATHER THAN ONLY ONE MR. MOORE SAID BIG SIX FIRMS GENERALLY SELECT ONLY ONE CANDIDATE FOR VOTING BY PARTNERS WE'RE CONSIDERING PUTTING MORE TEETH INTO DEMOCRACY AT THE FIRM AND HAVING THE PARTNERS INSTEAD OF THE GOVERNING COUNCIL SELECT THE NEXT CHAIRMAN MR. MOORE ADDED OTHER COOPERS PARTNERS SAY MR. MOORE IS QUIET AND POPULAR PARTNERS SAY HE MADE A BIG CONTRIBUTION TO COOPERS AND LYBRAND'S HIGH TECH BUSINESS WHICH HE HEADED UNTIL LATE NINETEEN NINETY ONE MR. MOORE SAID HE PLANS TO RUN FOR CHAIRMAN COOPERS PARTNERS SAID MR. DIPIAZZA ALSO HAS A RELAXED STYLE AND IS WELL LIKED AT THE FIRM MR. DIPIAZZA WAS IN NEW YORK VISITING CLIENTS AND COULDN'T BE REACHED FOR COMMENT ON WHETHER HE PLANS TO RUN FOR CHAIRMAN MR. MOORE SAID THAT IF HE WERE ELECTED CHAIRMAN HE WOULD CONTINUE TO TRY TO INCREASE THE FIRM'S MARKET SHARE WITH CLIENTS IN INSURANCE TELECOMMUNICATIONS HIGH TECHNOLOGY HEALTH CARE AND MANUFACTURING WE ALSO HAVE TO BOOST OUR BUSINESS SHARE IN THE MIDWEST WHERE WE HAVEN'T YET PUT MONEY AND TEETH INTO NEW MARKETING PROGRAMS HE ADDED GAINING BUSINESS WOULD ADDRESS A KEY WORRY OF THE FIRM'S PARTNERS COOPERS ASKED ABOUT TWELVE PERCENT OF ITS PARTNERS OR ONE HUNDRED SIXTY TO LEAVE OR TAKE EARLY RETIREMENT LAST YEAR IN THE FACE OF SLOWER GROWTH THAN IN THE EARLY NINETEEN EIGHTIES BUT OTHER FIRMS HAVE MADE DEEPER CUTS IN PARTNERS MR. MOORE SAID THAT IF HE WERE ELECTED CHAIRMAN HE WOULDN'T CONTINUE STREAMLINING BUT WOULDN'T BE CARETAKER EITHER HE ADDED WE'RE ABOUT THIRTY PERCENT THERE IN THE NEW STATEGY TO BOOST BUSINESS BY FOCUSING ON INDUSTRY GROUPS SO THERE'S A LOT MORE WORK THAT HAS TO BE DONE MR. FREEDMAN HAD SOUGHT A CHANGE IN THE FIRM'S BYLAWS ALLOWING HIM TO RUN FOR ANOTHER THREE YEAR TERM AS CHAIRMAN HE WILL SOON REACH THE FIRM'S MANDATORY RETIREMENT AGE OF SIXTY TWO BUT WHEN HIS POLL OF ONE THOUSAND TWO HUNDRED PARTNERS SHOWED THAT HE HADN'T GATHERED ENOUGH SUPPORT HE CHOOSE RETIREMENT NEXT SEPTEMBER THIRTIETH NUMEROUS PARTNERS HAVE PRAISED MR. FREEDMAN FOR TRYING TO GIVE COOPERS MORE BUSINESS FOCUS BY REORGANIZING THE FIRM ALONG THE LINES OF INDUSTRIES SERVED BUT SOME FEEL HE OFTEN TREATED SUBORDINATES HARSHLY QUOTE GENE SOMETIMES COMES ON STRONG BUT REALLY HAS THE FIRM'S BEST INTERESTS AT HEART QUOTE SAYS HAROLD DANKNER A COOPERS PARTNER MR. FREEDMAN'S SECRETARY SAID HE WAS IN A MEETING AND COULDN'T BE REACHED FOR COMMENT MESSRS O'BRIEN ROBERTS MCKESSY AND O'REILLY WEREN'T AVAILABLE FOR COMMENT THE DOW JONES INDUSTRIAL AVERAGE EKED OUT A RECORD IN LATE TRADING THE DOLLAR ROSE AGAINST THE MARK AND WAS UNCHANGED AGAINST THE YEN IN THIN HOLIDAY TRADING SOME INSURANCE COMPANY STOCKS FELL ON CONCERNS THAT CLAIMS STEMMING FROM THE LOS ANGELES EARTHQUAKE WOULD CUT INTO PROFITS BUT AT THE SAME TIME SOME CONSTRUCTION COMPANIES GAINED ON THE EXPECTED WINDFALL FROM REBUILDING STOCK MARKET TRADING WAS SUBDUED BECAUSE OF THE HOLIDAY IN HONOR OF MARTIN LUTHER KING JUNIOR THE BOND MARKET WAS CLOSED WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST ZERO POINT TWO ONE TO ONE HUNDRED THIRTEEN POINT OH THREE STOCK PRICES WERE MIXED VOLUME TOTALED TWO HUNDRED TWENTY SIX POINT FOUR MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND SEVENTY ONE ISSUES FELL AND NINE HUNDRED NINETY FOUR ROSE THE DOLLAR ROSE AGAINST THE MARK IN LATE NEW YORK TRADING THE CURRENCY WAS AT ONE POINT SEVEN FIVE FIVE THREE MARKS AND ONE HUNDRED ELEVEN POINT OH SIX YEN COMPARED WITH ONE POINT SEVEN FOUR NINE FIVE MARKS AND ONE HUNDRED ELEVEN POINT OH SIX YEN FRIDAY WHO SAYS LIFE DOESN'T IMITATE ART THEY HAD A SEQUEL TO QUOTE JOE VERSUS THE VOLCANO QUOTE HERE SUNDAY AFTERNOON AND AGAIN JOE WON THIS JOE WAS QUARTERBACK JOE MONTANA NOW OF THE KANSAS CITY CHIEFS HE'S THE MOST FAMOUS FOOTBALLING JOE WHOSE MIDDLE NAME ISN'T WILLIE HE'S THIRTY SEVEN YEARS OLD NEAR ANCIENT FOR A JOCK BUT IF HIS BODY ISN'T QUITE WHAT IT WAS WHILE HE WAS LEADING THE SAN FRANCISCO FORTY NINE ERS TO A SPATE OF NATIONAL FOOTBALL LEAGUE CHAMPIONSHIPS IN THE PAST FAST RETREATING DECADE HIS MIND HAS NOT LOST ITS CUNNING THE MAIN LESSON OF JOE'S SEASONS PAST FOURTEEN OF THEM IS THAT ONE NEEDN'T SUCCEED ALL THE TIME TO WIN JUST ONCE MORE THAN THE OTHER TEAM WE HAD A LOT OF MISSED OPPORTUNITIES IN THE FIRST HALF WHILE THE HOME TEAM HOUSTON OILERS WERE TAKING A TEN TO ZERO LEAD BUT WE WERE JUST A LITTLE OFF AND WE KNEW THAT IF WE KEPT AT IT WE'D CONNECT HE SAID AFTER HIS TEAM'S TWENTY EIGHT TO TWENTY UPSET PLAYOFF VICTORY PUT IT INTO SUNDAY'S AMERICAN CONFERENCE TITLE GAME AGAINST THE BUFFALO BILLS HE ADDED THE OILERS BLITZED A LOT YOU KNOW AND THAT LEFT A WHOLE FIELD TO PASS INTO THE AUTHOR OF THOSE BLITZES WAS STUMPY CLAUDE BUDDY RYAN THE OILERS' DEFENSIVE COORDINATOR HE PLAYED THE VOLCANO ON SUNDAY IT'S A ROLE HE'S USED TO THANKS IN PART TO THE QUARTERBACK SEEKING ERUPTIONS HIS CHARGES LAUNCH AND IN PART TO HIS OWN PROPENSITY FOR BLOWING HIS TOP HE DID THE LATTER DURING A REGULAR SEASON GAME A COUPLE OF WEEKS BACK THROWING A PUNCH AT KEVIN GILBRIDE HIS OWN TEAM'S OFFENSIVE COORDINATOR WHEN GILBRIDE'S PLAY SELECTION DISPLEASED HIM BEFORE THAT RYAN HAD PUNCTUATED AN UH INTERESTING COACHING CAREER BY TAKING VERBAL SHOTS AT HEAD COACHES HE'D WORKED FOR VARIOUS OTHER COLLEAGUES AND THE OWNER OF THE TEAM FOR WHICH HE WAS HEAD COACH THAT'S WHY HE'S AN ASSISTANT TODAY DESPITE A PROFESSIONAL LIFETIME OF STATEMENTS THAT ADD UP TO THE SELF DRAWN CONCLUSION THAT HE'S THE ONLY MAN IN AMERICA WHO REALLY KNOWS HOW TO COACH FOOTBALL RYAN MAY BE RIGHT ABOUT THAT BUT ON SUNDAY HE MANFULLY ADMITTED THAT SOME FELLAS BESIDES THE ONES HE OVERSEES KNOW HOW TO PLAY I THOUGHT WE PLAYED WELL ENOUGH BUT A GUY NAMED MONTANA PLAYED PRETTY WELL TOO SAID HE HE KEPT GETTING UP LIKE HE ALWAYS DOES THE GUYS ON THE K. C. DEFENSE DID ALL RIGHT TOO BETTER IN FACT THAN BUDDY'S BOYS THEY HELD THE OILERS TO TWO HUNDRED SEVENTY SEVEN NET YARDS SEVENTY SEVEN FEWER THAN THE CHIEFS PRODUCED AND CAUSED HOUSTON QUARTERBACK WARREN MOON TO ARISE AFTER SACKS NINE TIMES JOE HAD TO DO THAT ONLY TWICE AND HEY BUDDY ALSO COULD CLAIM SOME CREDIT FOR THE CHIEFS' DEFENSIVE ACHIEVEMENTS QUOTE WHEN ALL YOU HEAR FOR A WEEK IS BUDDY BUDDY BUDDY AND HOW GREAT HIS GUYS ARE IT MAKES YOU ASK HOW ABOUT US QUOTE SAID JOE PHILLIPS THE LARGE K. C. DEFENSIVE TACKLE I'D SAY THAT HELPED MOTIVATE US INDEED WHILE MONTANA WHO WAS LURED TO THE CHIEFS THIS SEASON FOR A REPORTED YEARLY WAGE OF FOUR MILLION DOLLARS HAD A FINE DAY COMPLETING TWENTY TWO OF THIRTY EIGHT PASSES FOR TWO HUNDRED NINETY NINE YARDS MOST AGREED THAT A DEFENSIVE SERIES TURNED THE TIDE FOR THE WINNERS IT CAME EARLY IN THE FOURTH QUARTER WHEN WITH HIS TEAM TRAILING TEN TO SEVEN JOE TRIED TO LOB A PASS TO TIGHT END JONATHAN HAYES BUT IT WAS INTERCEPTED BY TERRY HOAGE AT THE CHIEFS' TWENTY FIVE YARD LINE A TOUCHDOWN THERE WOULD HAVE MADE THE HOUSTON MARGIN FORMIDABLE BUT ON THIRD DOWN AND ONE AT THE SIXTEEN SAFETY BENNIE THOMPSON SACKED MOON FOR A TEN YARD LOSS AND THE RESULTING OILER SCORE ON AN AL DEL GRECO FIELD GOAL KEPT THE LEAD WITHIN THE CHIEFS' REACH JOE QUICKLY GRABBED IT MOVING HIS TEAM SEVENTY ONE YARDS IN THREE PLAYS THE NEXT TIME IT HAD THE BALL THE TOUCHDOWN CAME ON AN ELEVEN YARD PASS TO J. J. BIRDEN AND WHEN CHIEFS PASS RUSHER DERRICK THOMAS SAILED IN TO DUMP POOR MOON ON THE FIRST PLAY OF THE OILERS' NEXT POSSESSION CAUSING A FUMBLE THAT TEAMMATE DAN SALEAUMUA RECOVERED MONTANA RESPONDED WITH WHAT PROVED TO BE THE WINNING POINTS ON AN EIGHTEEN YARD TOUCHDOWN PASS TO A LEAPING WILLIE DAVIS MOON PULLED HIS TEAM TO WITHIN A POINT TWENTY ONE TO TWENTY WITH AN EIGHTY YARD TEN PLAY ALL PASS DRIVE THAT ENDED WITH THREE THIRTY FIVE LEFT IN THE BUSY FOURTH QUARTER BUT MONTANA KEPT THE BALL FROM HOUSTON BY CONVERTING A THIRD DOWN AND ONE SITUATION WITH A PASS TO KEITH CASH AND THE VETERAN MARCUS ALLEN SET THE FINAL SCORE WITH A TWENTY ONE YARD T. D. RUN ALL N. F. L. POSTSEASON GAMES ARE FRAUGHT WITH IMPLICATIONS BUT THIS ONE WAS FRAUGHTER THE OILERS HAVE MADE THE PLAYOFFS FOR SEVEN STRAIGHT YEARS NOW A CURRENT LEAGUE HIGH BUT HAVEN'T REACHED A CONFERENCE CHAMPIONSHIP GAME IN THAT STRETCH AND REMAIN ONE OF NINE TEAMS THAT HAVE NEVER APPEARED IN A SUPER BOWL AFTER BLOWING A THIRTY FIVE TO THREE LEAD TO LOSE TO BUFFALO FORTY ONE TO THIRTY EIGHT IN A MEMORABLE QUARTERFINAL MATCH LAST YEAR HOUSTON BROUGHT IN RYAN TO RUN ITS DEFENSE AFTER THIS ONE RYAN MIGHT BE GONE ALONG WITH SPARRING PARTNER GILBRIDE AND HEAD COACH JACK PARDEE WHO'S SPENT MUCH OF THE YEAR AS A FIGHT REF THE HOUSTON SUN MAY ALSO HAVE SET ON Q. B. MOON WHO IS THIRTY SEVEN LIKE JOE BUT WITHOUT THE SUPER BOWL RINGS THE CHIEFS HAVE ONE S. B. CROWN TO THEIR CREDIT IN NINETEEN SEVENTY BUT HAVEN'T BEEN IN AN A. F. C. TITLE CONTEST SINCE THEIR COACH MARTY SCHOTTENHEIMER TWICE LED CLEVELAND BROWNS TEAMS TO THAT ROUND BUT LOST BOTH TIMES ALL THIS GIVES US IS A CHANCE TO PLAY AGAIN TOMORROW HE REMINDED GRIMLY AFTER SUNDAY'S FRAY ACTUALLY IT WOULD BE SEVEN DAYS BEFORE THEY PLAY AGAIN AT PROBABLY FRIGID BUFFALO THEY'LL BE UNDERDOGS THERE DESPITE THE PRAYERS OF THE MANY WHO DON'T WANT TO SEE THE BILLS LOSERS IN THE THREE S. B.S PAST QUALIFY FOR NUMBER FOUR WHOEVER WINS THAT ONE WILL PLAY THE WINNER OF THE NATIONAL CONFERENCE FINAL BETWEEN THE DEFENDING CHAMP DALLAS COWBOYS AND THE FORTY NINE ERS WHOEVER WINS THAT ONE WILL BE FAVORED OVER WHOEVER WINS THE OTHER BUT IT'S POSSIBLE JUST POSSIBLE THAT ON JANUARY THIRTIETH IN ATLANTA WE'LL GET JOE VERSUS HIS OLD NINER CLUB IT'D BE TOUGH TO CONCOCT A SEQUEL TO THAT A NEW SURVEY SHOWS THAT CORPORATE BUYERS OF HEALTH CARE PLANS ARE MORE CONCERNED WITH LOW PRICES THAN HIGH QUALITY CONVERSATIONS LIKE THIS ONE CORROBORATE THE FINDINGS OF A RECENT SURVEY BY FOSTER HIGGINS AN EMPLOYEE BENEFITS CONSULTANT THE SURVEY OF ONE HUNDRED TWO MANAGED CARE ORGANIZATIONS AND ONE HUNDRED TWENTY SEVEN HOSPITALS AND PHYSICIAN PRACTICES AROUND THE COUNTRY FOUND THAT BY A LARGE MEASURE SUBJECTS RATED PRICE OVER QUALITY AS THE MAJOR FACTOR FOR SUCCESS IN THEIR MARKETS OVER THE NEXT THREE TO FIVE YEARS QUOTE IN EVERY BUSINESS PRICE IS KING BUT ONE WOULD HAVE EXPECTED TO SEE QUALITY OR OUTCOMES RATED HIGHER QUOTE SAID GLENN MEISTER A PRINCIPAL AT FOSTER HIGGINS INDEED SIXTY NINE PERCENT OF THE MANAGED CARE GROUPS THAT PARTICIPATED IN THE SURVEY LISTED PRICE AS EITHER FIRST OR SECOND AMONG SEVEN INGREDIENTS FOR SUCCESS WHILE ONLY NINE PERCENT RATED PUBLISHED DATA ON OUTCOMES OF CARE A QUALITY MEASURE AS THAT IMPORTANT MOST MANAGED CARE RESPONDENTS RANKED OUTCOMES LAST SUGGESTING THAT QUALITY DOESN'T YET PLAY A SIGNIFICANT ROLE IN PURCHASING DECISIONS ONE RESULT THE SURVEY SUGGESTS IS THAT ONLY A FEW HEALTH PLANS AND PROVIDER GROUPS ARE AGGRESSIVELY TRYING TO MEASURE THE QUALITY OF THE CARE THEY OFFER ONLY TWENTY FOUR PERCENT OF ALL SURVEY PARTICIPANTS CONSIDERED THEMSELVES VERY ACTIVE OR EXTREMELY ACTIVE IN RESEARCH PROJECTS THAT STUDY THE IMPACT OF THEIR CARE ON THE WELL BEING OF THEIR MEMBERS THIRTY TWO PERCENT SAID THEY WEREN'T PARTICIPATING IN SUCH ACTIVITIES PARTICIPANTS IN THE FOSTER HIGGINS SURVEY CONDUCTED AMONG MEDICAL DIRECTORS OF THE HEALTH CARE ORGANIZATIONS LAST SUMMER RATED PATIENT SATISFACTION AS THE SECOND MOST IMPORTANT FACTOR IN MARKETPLACE SUCCESS EMPLOYERS INCREASINGLY CONSIDER PATIENT SATISFACTION AN IMPORTANT MEASURE OF QUALITY BUT MR. MEISTER MAINTAINED THAT FEW HEALTH PLANS COMPILE SCIENTIFICALLY VALID DATA ON PATIENT SATISFACTION THAT RELATE DIRECTLY TO QUALITY OF CARE WHILE SEVENTY SEVEN PERCENT OF RESPONDENTS SAID THEY BELIEVE THAT ACCURATE RESEARCH ON THE OUTCOMES OF TREATMENT AT VARIOUS PLANS WILL IMPROVE QUALITY JUST THIRTY PERCENT OF MANAGED CARE PLANS AND FORTY SIX PERCENT OF HOSPITALS AND PHYSICIAN PRACTICES SAID IT WILL SAVE MONEY THAT CONTRASTS WITH THE VIEWS OF MANY QUALITY IMPROVEMENT ADVOCATES WHO SAY SUCH RESEARCH CAN LEAD BOTH TO BETTER QUALITY AND LOWER COSTS SHEILA LEATHERMAN PRESIDENT OF THE CENTER FOR HEALTH CARE POLICY AND EVALUATION A UNIT OF UNITED HEALTHCARE CORPORATION MINNEAPOLIS SAID THAT WHILE QUALITY ISSUES SCORED LOW IN THE SURVEY THEY ARE MOVING UP VERY QUICKLY AS A PUBLIC CONCERN IN THE NATIONAL HEALTH CARE REFORM DEBATE MEANWHILE STIFF COMPETITION IN SOME MARKETS IS ALREADY BEGINNING TO NARROW PRICE DIFFERENCES AMONG PROVIDERS OF CARE SAID GROUP HEALTH'S MR. BRUMLEVE A DEVELOPMENT THAT WILL MAKE QUALITY A TOP PRIORITY HOW ARE PLANS GOING TO DIFFERENTIATE THEMSELVES IN THE MARKET HE ASKED IT'S NOT GOING TO BE ON PRICE IT'S GOING TO BE ON SERVICE ACCESS TO DOCTORS AND ON OUTCOMES THE ACTUAL QUALITY OF CARE BEING DELIVERED HOW ONE HUNDRED TWO MANAGED CARE ORGANIZATIONS RANKED FACTORS IMPORTANT TO SUCCESS IN THE MARKETPLACE PERCENTAGE OF PLANS RANKING A FACTOR FIRST OR SECOND ELI LILLY AND COMPANY HAS DECIDED TO SELL OR SPIN OFF ITS ENTIRE MEDICAL DEVICE BUSINESS NINE COMPANIES WITH TOTAL ANNUAL SALES OF ABOUT ONE POINT TWO BILLION DOLLARS ACCORDING TO PEOPLE FAMILIAR WITH THE MOVE THE INDIANAPOLIS BASED DRUG CONCERN IS EXPECTED TO ANNOUNCE THE DECISION AS EARLY AS TODAY THE PLAN ENDORSED BY THE LILLY BOARD YESTERDAY IS A FIRST INDICATION OF A CHANGED COURSE FOR LILLY UNDER NEW CHAIRMAN RANDALL L. TOBIAS LILLY'S RESOLVE TO SELL OR SPIN OFF ALL THE DEVICE COMPANIES WILL SHARPLY ALTER THE LANDSCAPE IN SEVERAL MEDICAL FIELDS SINCE THE COMPANY IS THE MARKET SHARE LEADER OR A STRONG NUMBER TWO IN SEVERAL AREAS OF MEDICAL EQUIPMENT SALES THE COMPANY FOR MONTHS HAS BEEN CONSIDERING WHETHER TO SELL SOME OR ALL OF THE SUBSIDIARIES DEPENDING ON THE OFFERS IT RECEIVES LILLY WILL EITHER SELL THE MEDICAL DEVICE DIVISION IN WHOLE OR IN PART TO OTHER COMPANIES SPIN OFF A PORTION OR EVEN ARRANGE AN INITIAL PUBLIC OFFERING OF SHARES REPRESENTING PART OF THE DIVISION ACCORDING TO A LILLY OFFICIAL FAMILIAR WITH THE DECISION THE MOVE IS EXPECTED TO WIN APPROVAL ON WALL STREET BECAUSE OF THE UNEVEN PERFORMANCE OF THE COMPANIES AND A PERCEPTION THAT LILLY SHOULD FOCUS ON ITS CORE PHARMACEUTICAL BUSINESS AND BOOST THE NUMBER OF NEW PRODUCTS IN ITS PIPELINE THE COMPANY WOULD USE THE PROCEEDS TO INVEST IN PHARMACEUTICAL RESEARCH AND DEVELOPMENT ACCORDING TO THE LILLY OFFICIALS FAMILIAR WITH THE MOVE QUOTE MOST ANALYSTS BELIEVE THE DIVESTITURE OF THE DEVICE DIVISION WOULD BE A PLUS FOR THE COMPANY QUOTE SAID PAINEWEBBER ANALYST RONALD NORDMANN OUR ESTIMATE IS THAT IN THE AGGREGATE THEY COULD BE WORTH MORE THAN TWO BILLION DOLLARS HE SAID SUCH A MOVE COULD RELIEVE SOME OF THE FINANCIAL PRESSURE ON LILLY WHICH HAS SEEN LAGGING EARNINGS IN SOME RECENT QUARTERS AFTER YEARS OF NONSTOP SUCCESSES CHIEF AMONG THE COMPANIES IN THE DIVISION IS THE CARDIAC PACEMAKERS INCORPORATED UNIT IN SAINT PAUL MINNESOTA WHICH BESIDES SELLING PACEMAKERS HAS BEEN A WORLD LEADER IN DEVELOPING SURGICALLY IMPLANTED CARDIAC DEFIBRILLATORS THESE MACHINES ADMINISTER ELECTRICAL IMPULSES TO SLOW DOWN RACING HEARTBEATS WHICH ARE POTENTIALLY FATAL THE UNIT WITH THREE HUNDRED FIFTY MILLION DOLLARS IN ESTIMATED ANNUAL SALES MADE THE FIRST SUCH IMPLANTABLE MACHINE TO BE SOLD IN THE U. S. MARKET IT ALSO IS ONE OF THREE LEADING COMPANIES EXPECTED TO PROFIT HANDSOMELY IN A BURGEONING DEFIBRILLATOR MARKET THAT COULD REACH ONE BILLION DOLLARS OR MORE IN ANNUAL SALES IN THE NEXT FEW YEARS ANOTHER HIGHLY SUCCESSFUL COMPANY INCLUDED IN LILLY'S MOVE IS THE ADVANCED CARDIOVASCULAR SYSTEMS INCORPORATED UNIT BASED IN SANTA CLARA CALIFORNIA THIS CONCERN CHIEFLY MAKES BALLOON ANGIOPLASTY CATHETERS IT IS STILL THE LEADING COMPANY IN THIS FIELD WORLD WIDE ALTHOUGH IT HAS BEEN OVERTAKEN IN RECENT MONTHS IN THE U. S. BY SCIMED LIFE SYSTEMS INCORPORATED ANGIOPLASTY CATHETERS ARE AN ASSEMBLAGE OF WIRES WITH A TINY BALLOON AT THE END USED TO COMPRESS MATERIAL BLOCKING CORONARY ARTERIES THE UNIT HAS ESTIMATED ANNUAL SALES OF TWO HUNDRED FIFTY MILLION DOLLARS SOME OF THE OTHER LILLY DEVICE COMPANIES HAVE HAD RELATIVELY POOR RESULTS RECENTLY FOR INSTANCE LILLY'S SAN DIEGO BASED HYBRITECH INCORPORATED UNIT WHICH MAKES BLOOD TESTS FOR PROSTATE CANCER AND OTHER PRODUCTS HAS LOST MARKET SHARE IN RECENT YEARS TO ABBOTT LABORATORIES THE PHYSIO CONTROL CORPORATION UNIT IN REDMOND WASHINGTON ALSO AMONG THE NINE COMPANIES IN THE DEVICE DIVISION HAS BEEN ESPECIALLY PROBLEM PRONE IN THE PAST TWO YEARS IT ONCE HAD ONE HUNDRED FIFTY MILLION DOLLARS IN ANNUAL SALES BUT ITS PRODUCTION WAS SHUT DOWN BY THE FOOD AND DRUG ADMINISTRATION UNTIL RECENTLY THE FEDERAL AGENCY FOUND A HOST OF PRODUCTION AND RECORD KEEPING DEFICIENCIES AT PHYSIO CONTROL WHICH MAKES EMERGENCY CARDIAC DEFIBRILLATORS USED BY PARAMEDICS TO REVIVE PATIENTS WHO ARE NEAR DEATH THE OTHER COMPANIES IN LILLY'S MEDICAL DEVICE DIVISION ARE DEVICES FOR VASCULAR INTERVENTION INCORPORATED HEART RHYTHM TECHNOLOGIES INCORPORATED IVAC CORPORATION ORIGIN MEDSYSTEMS INCORPORATED AND PACIFIC BIOTECH INCORPORATED A TINY DES MOINES SOFTWARE COMPANY HOPES TO DO FOR MULTIMEDIA SYSTEMS WHAT MICROSOFT CORPORATION HAS DONE FOR P. C.S MICROSOFT CAME TO DOMINATE THE PERSONAL COMPUTER INDUSTRY BY DESIGNING THE INTERNAL SOFTWARE KNOWN AS THE OPERATING SYSTEM THAT MADE MILLIONS OF P. C.S RUN NOW LITTLE KNOWN MICROWARE SYSTEMS CORPORATION IS TRYING TO GET THE SAME HOLD IN INTERACTIVE SOFTWARE BY DESIGNING THE OPERATING SYSTEM FOR THE T. V. SET TOP BOXES EXPECTED TO BE IN MILLIONS OF HOMES LITTLE KNOWN MICROWARE HAS JUST LANDED A COVETED PIECE OF BUSINESS BELL ATLANTIC CORPORATION THE REGIONAL BELL COMPANY EXPECTS TO DISTRIBUTE AN INTERACTIVE SERVICE TO TEN MILLION HOUSEHOLDS BY THE TURN OF THE CENTURY IT HAS PLACED ORDERS FOR SET TOP BOXES FROM THREE SUPPLIERS ALL THE BOXES IN TURN RELY ON MICROWARE'S O. S. SLASH NINE SOFTWARE THE COMPANY'S SOFTWARE IS ALREADY USED IN HUNDREDS OF CRITICAL SYSTEMS WORLDWIDE THE CALIFORNIA DEPARTMENT OF TRANSPORTATION HAS BEGUN RELYING ON O. S. SLASH NINE TO RUN TRAFFIC LIGHTS TOLL BOOTHS AND EVEN TO HELP WEIGH TRUCKS CHRYSLER CORPORATION USES O. S. SLASH NINE IN THE COMPUTER SYSTEMS THAT DESIGN AND BUILD BRAKING SYSTEMS AT THE UNIVERSITY OF CERN IN SWITZERLAND THE PARTICLE ACCELERATOR COULDN'T SMASH ATOMS WITHOUT THOUSANDS OF MICROWARE SYSTEMS CONTROLLING ITS MAGNETS THE KEY FEATURE AT THE HEART OF THESE MYRIAD APPLICATIONS IS O. S. SLASH NINE'S ABILITY TO HANDLE MULTIPLE QUOTE REAL TIME QUOTE TASKS SIMULTANEOUSLY WHICH CAN BE TRACED TO THE SOFTWARE'S ROBOTIC ORIGINS SUCH MULTITASKING POWERS ARE SEEN AS A CRITICAL FEATURE FOR INTERACTIVE NETWORKS LETTING INTERACTIVISTS SHOP ON A NETWORK OR RESPOND INSTANTLY TO THE BUTTON PRESSING OF FELLOW GAME PLAYERS THEIR SOFTWARE HAS A LOT OF THE FUNCTIONS THAT EVERYBODY BELIEVES WILL BE NECESSARY FOR THE FUTURE INTERACTIVE SERVICES SAYS LUCY FJELDSTADT FORMER VICE PRESIDENT OF MULTIMEDIA AT INTERNATIONAL BUSINESS MACHINES CORPORATION WHO NOW RUNS A CONSULTING FIRM IN NEW CANAAN CONNECTICUT MICROWARE WOULD SEEM TO BE A SURPRISE CONTENDER IN THE HIGHLY COMPETITIVE MULTIMEDIA SWEEPSTAKES IN WHICH MICROSOFT HAS INVESTED ONE HUNDRED MILLION DOLLARS A YEAR IT WAS FOUNDED SEVENTEEN YEARS AGO BY KENNETH KAPLAN A COMPUTER BUFF AT DRAKE UNIVERSITY IN DES MOINES AND TWO FRIENDS THEY STARTED OUT TRYING TO BUILD AN EDUCATIONAL ROBOT FOR TEACHING HANDICAPPED CHILDREN A PROJECT THAT WENT NOWHERE MICROWARE GOT ITS FIRST BIG BREAK IN NINETEEN EIGHTY WHEN MOTOROLA INCORPORATED APPROACHED MR. KAPLAN AND HIS PARTNERS AND ASKED THEM TO DESIGN AN OPERATING SYSTEM FOR A NEW MICROPROCESSOR TODAY ABOUT EIGHTY PERCENT OF OUR BUSINESS IS MOTOROLA BASED MR. KAPLAN SAYS WE OWE OUR EXISTENCE TO THEM BY NINETEEN EIGHTY TWO TANDY CORPORATION CHOSE O. S. SLASH NINE FOR ITS T. R. S. EIGHTY COLOR COMPUTER AN EARLY ENTRY IN HOME COMPUTERS SOON AFTER FUJITSU LIMITED IN JAPAN FITTED ITS MACHINES WITH O. S. SLASH NINE BY NINETEEN EIGHTY SIX WHEN PHILIPS AND SONY CORPORATION BEGAN LOOKING FOR A REAL TIME OPERATING SYSTEM FOR THEIR C. D. INTERACTIVE PLAYER THEY TURNED TO MICROWARE BECAUSE O. S. SLASH NINE WAS PROVEN IN LARGE COMMERCIAL AND SCIENTIFIC PROJECTS MICROSOFT LAST YEAR ALLIED WITH CHIP MAKER INTEL CORPORATION AND CABLE BOX MAKER GENERAL INSTRUMENT CORPORATION IN A BID TO DOMINATE THE SET TOP MARKET BUT THE TRIO HASN'T ANNOUNCED A FINAL PRODUCT AND SEEMS TO BE RUNNING BEHIND SCHEDULE THE EFFORT ALSO RAN INTO RESISTANCE WHEN CABLE COMPANIES BALKED AT MICROSOFT'S PLAN TO CHARGE A FEE EACH TIME A CONSUMER CONDUCTED A TRANSACTION USING ITS SET TOP SOFTWARE MICROWARE'S FOUNDER MR. KAPLAN SAYS MICROSOFT'S EFFORTS TO CONTROL THE MARKET SIMPLY WON'T WORK THIS TIME ANYBODY IN COMPUTERS ALWAYS TALKS ABOUT HOW THEY SUPPORT OPEN STANDARDS HE SAYS QUOTE BUT IN THE DARK RECESSES OF THEIR GREEDY LITTLE HEARTS THEY WANT THINGS TO BE PROPRIETARY QUOTE AND USE THAT EDGE TO THEIR OWN ADVANTAGE O. S. SLASH NINE BY CONTRAST WILL WORK WITH MYRIAD RIVAL SYSTEMS MR. KAPLAN SAYS INCLUDING GEAR FROM I. B. M. PHILIPS N. V. AND SEVERAL OTHER SET TOP VENDORS SELECTED LAST WEEK BY BELL ATLANTIC NOR DOES MICROWARE INTEND TO IMPOSE ADDITIONAL PER TRANSACTION USER FEES BEYOND WHAT IT CHARGES FOR LICENSING O. S. SLASH NINE THE COMPANY SAYS MICROWARE'S O. S. SLASH NINE WENT HEAD TO HEAD WITH A PROTOTYPE FROM MICROSOFT CALLED MODULAR WINDOWS IN A TEST BY BELL ATLANTIC SAYS ARTHUR ORDUNA A MICROWARE MARKETING MANAGER HE BRAGS THAT O. S. SLASH NINE BEAT ITS RIVAL A MICROSOFT SPOKESWOMAN DOESN'T DISPUTE THIS ACCOUNT HOWEVER SHE SAID MICROSOFT IS INTERESTED IN NOT ONLY SUPPLYING REAL TIME SOFTWARE FOR SET TOP BOXES BUT ALSO GRAPHICAL SOFTWARE THAT PRESENTS A PICTURE ON THE TELEVISION SCREEN THAT COULD ENTICE CONSUMERS TO USE THE SERVICE CHAIRMAN BILL GATES HAS SAID THAT THE EARLY INTERACTIVE SERVICES TRIALS WILL BE DISAPPOINTING BECAUSE WE HAVEN'T MADE ENOUGH PROGRESS IN USER INTERFACES AND THE RICHNESS OF SERVICES DELIVERED SHE ADDED THAT MICROSOFT MAY BE BEHIND SCHEDULE BECAUSE IT IS TRYING TO DELIVER SOFTWARE FOR SEVERAL SEGMENTS OF THE MARKET INCLUDING CABLE HEAD END SYSTEMS SET TOP BOXES AND THE PROGRAMS DELIVERED OVER THE NETWORKS MR. KAPLAN SAYS MICROSOFT IN MARCH NINETEEN EIGHTY SIX TRIED TO BUY MICROWARE MICROSOFT HAD BEGUN TRADING PUBLICLY ON THE OVER THE COUNTER MARKET ACCORDING TO MR. KAPLAN MR. GATES SAW THAT MICROWARE WAS CHOSEN AS THE OPERATING SYSTEM FOR THE PHILIPS SONY C. D. I. MACHINE AND HE WANTED INTO THAT MARKET BADLY RATHER THAN DESIGN A NEW OPERATING SYSTEM MR. GATES FIGURED IT MADE MORE SENSE TO BUY MICROWARE MR. KAPLAN SAYS I REFUSED AND WANTED A JOINT VENTURE INSTEAD AND THE TALKS FELL APART MR. GATES THROUGH A SPOKESWOMAN CONFIRMED THE ACCOUNT COMPARED WITH MICROSOFT MICROWARE IS TRULY MICRO THE CLOSELY HELD COMPANY DOESN'T GIVE OUT NUMBERS MR. KAPLAN ITS PRESIDENT WILL SAY ONLY THAT WE'RE ONE ONE HUNDREDTH THE SIZE OF MICROSOFT WHICH WOULD INDICATE REVENUE OF ABOUT TWENTY FIVE MILLION DOLLARS OR MORE TONIGHT BELL ATLANTIC'S KEY PARTNER IN MULTIMEDIA SOFTWARE ORACLE CORPORATION IS STAGING EVENTS IN FOUR CITIES TO OUTLINE ITS INTERACTIVE AMBITIONS THE BELL ATLANTIC EFFORT IS A MUCH WATCHED AFFAIR BECAUSE WHILE THE PHONE COMPANY COULD CHANGE ITS SUPPLIERS IT INTENDS TO DELIVER NEW SERVICES TO TWO HUNDRED FIFTY THOUSAND HOMES BY YEAR'S END ADDING ANOTHER MILLION HOMES IN NINETEEN NINETY FIVE BELL ATLANTIC'S PLAN TO ACQUIRE CABLE GIANT TELE COMMUNICATIONS INCORPORATED COULD GIVE IT ACCESS TO MORE THAN TWENTY MILLION HOMES TODAY HALF OF MICROWARE'S SALES ARE OVERSEAS AS ARE HALF OF MICROWARE'S TWO HUNDRED EMPLOYEES THEY HAVE A NICE TIGHT SYSTEM THAT OPERATES WELL SAYS BRIAN SMITH VICE PRESIDENT OF MARKET DEVELOPMENT AT PHILIPS'S DIGITAL VIDEO COMMUNICATIONS SYSTEMS DIVISION QUOTE IT'S POWERFUL ENOUGH TO DO REAL TIME VIDEO FUNCTIONS AND YOU CAN STILL LOAD APPLICATIONS SOFTWARE ON TOP QUOTE ONEX CORPORATION TORONTO SAID IT EXPECTS TO RAISE NINETY SEVEN POINT FIVE MILLION CANADIAN DOLLARS SEVENTY THREE POINT SIX MILLION U. S. DOLLARS FROM THE SALE TO A GROUP OF UNDERWRITERS OF FIVE POINT FIVE MILLION SUBORDINATE VOTING SHARES ONEX SAID IT WILL HAVE ABOUT FORTY ONE MILLION SUBORDINATE VOTING SHARES OUTSTANDING AFTER THE ISSUE THE UNDERWRITING GROUP IS BEING LED BY WOOD GUNDY INCORPORATED AND R. B. C. DOMINION SECURITIES INCORPORATED ONEX AN INDUSTRIAL HOLDING COMPANY SAID PROCEEDS WILL BE USED TO FINANCE FUTURE ACQUISITIONS TRITON ENERGY CORPORATION DALLAS SAID IT HAS OFFERED TO ACQUIRE THE MINORITY SHARES OUTSTANDING OF ITS TRITON EUROPE P. L. C. UNIT IN EXCHANGE FOR NEW TRITON ENERGY CONVERTIBLE PREFERRED SHARES THE OFFER VALUES THE TRITON EUROPE SHARES WHICH TRADE IN LONDON AT THIRTY SEVEN POINT FIVE PENCE ABOUT FIFTY SIX CENTS A SHARE GIVING THE TRANSACTION AN INDICATED VALUE OF EIGHTEEN POINT SEVEN MILLION DOLLARS TRITON ENERGY AN OIL AND GAS COMPANY CURRENTLY OWNS FIFTY NINE POINT FIVE PERCENT OF THE SHARES OUTSTANDING OF TRITON EUROPE TRITON ENERGY INTENDS TO ISSUE THE PREFERRED SHARES IN EXCHANGE FOR THE APPROXIMATELY THIRTY THREE POINT FOUR MILLION TRITON EUROPE SHARES NOT CURRENTLY HELD BY THE COMPANY THE CONVERTIBLE PREFERRED SHARES WILL PAY A FIXED DIVIDEND OF FIVE PERCENT A YEAR AND WILL BE CONVERTIBLE INTO THE COMMON STOCK OF TRITON ENERGY AT AN APPROXIMATE TWENTY PERCENT PREMIUM TO MARKET VALUE AT CLOSING IT IS ESTIMATED THAT THE CLOSING WILL OCCUR WITHIN THE NEXT ONE HUNDRED TWENTY DAYS B. M. C. SOFTWARE INCORPORATED ABANDONING ITS RELIANCE ON MAINFRAME TECHNOLOGY SAID IT ACQUIRED CLOSELY HELD PATROL SOFTWARE WHICH USES QUOTE SMART AGENT QUOTE TECHNOLOGY TO TROLL FOR PROBLEMS ON CORPORATE COMPUTER NETWORKS B. M. C. SAID IT PAID THIRTY THREE POINT SEVEN MILLION DOLLARS FOR PATROL BASED IN REDWOOD SHORES CALIFORNIA AND ITS PATROL SOFTWARE PARTY LIMITED AFFILIATE IN AUSTRALIA THE PURCHASE MARKS A SHARP TURNABOUT IN STRATEGY FOR B. M. C. WHICH CURRENTLY DERIVES ALL OF ITS REVENUE FROM MAINFRAME COMPUTER TECHNOLOGY THE COMPANY HAS SURPRISED MANY ANALYSTS IN ITS ABILITY TO STAY PROFITABLE DESPITE A STAMPEDE AWAY FROM MAINFRAMES TO SMALLER MACHINES LIKE WORKSTATIONS AND SERVERS TIED TO NETWORKS OF PERSONAL COMPUTERS DURING THE FISCAL SECOND QUARTER ENDED SEPTEMBER THIRTIETH B. M. C. REPORTED NET INCOME OF TWENTY POINT TWO MILLION DOLLARS OR SEVENTY SEVEN CENTS A SHARE ON REVENUE OF SIXTY EIGHT MILLION DOLLARS B. M. C. DIDN'T PROVIDE REVENUE OR EARNINGS FIGURES FOR PATROL THOUGH B. M. C. SAID IT STILL WILL SELL MAINFRAME SOFTWARE ITS FOCUS NOW WILL BE ON COMPUTER NETWORKS USED BY COMPANIES TO RUN APPLICATIONS CRITICAL TO THEIR BUSINESS RUSS CACCAMISI B. M. C.'S EXECUTIVE DIRECTOR OF MARKETING SAID THE COMPANY EXPECTS ITS NONMAINFRAME REVENUE TO GROW TO DOUBLE DIGIT PERCENTAGES FROM ZERO OVER THE NEXT SEVERAL QUARTERS AS B. M. C. BEGINS TO MARKET PATROL'S TECHNOLOGY PATROL'S SOFTWARE USES KNOWLEDGE MODULES KNOWN ELSEWHERE AS SMART AGENTS TO PATROL COMPUTER NETWORKS IN SEARCH OF PROBLEMS THAT COULD LEAD TO LOST TIME OR MANGLED DATA PROBLEMS SPOTTED BY THE AGENTS ARE RELAYED TO A CENTRAL CONSOLE AND POSSIBLY FIXED BEFORE THE SYSTEM COLLAPSES MR. CACCAMISI SAID THE TECHNOLOGY IS DESIGNED TO APPEAL TO CORPORATE INFORMATION DIRECTORS WHO STILL FEAR A LOSS IN CONTROL AND OVERSIGHT AS THEY SEEK TO SHIFT TO SMALLER COMPUTING PLATFORMS IT'S IMPOSSIBLE TO MANAGE THESE NETWORKS WITH HUMAN BEINGS MR. CACCAMISI SAID IN NASDAQ STOCK MARKET TRADING YESTERDAY B. M. C. STOCK CLOSED AT SIXTY THREE DOLLARS AND TWENTY FIVE CENTS UP THREE DOLLARS QUOTE JANUARY QUOTE THE CALENDAR OVER MY COMPUTER SAYS AND AT THE TOP IN GREEN INK QUOTE WOMEN QUOTE THIS PENNED QUESTION TO MYSELF REPRESENTS THE TINY BYPRODUCT OF A DEBATE RAGING IN MAGAZINES AND OPINION PAGES LIKE THIS ONE LATE LAST YEAR THE NEW REPUBLIC ITSELF NO BASTION OF TOWERING FEMALES PUBLISHED A COVER STORY BY WRITER NAOMI WOLF ARGUING THAT MEN ALONE CONTROL THE WORLD OF OPINION MAKING MS. WOLF'S ARGUMENT RELIED ON A STUDY THAT SHOWED WOMEN WRITE A MERE TEN PERCENT TO TWENTY PERCENT OF OP ED ARTICLES THE GROUP THAT PRODUCED THE STUDY WOMEN MEN AND MEDIA WAS RUMORED TO BE PLANNING ANOTHER THIS TIME FOR JANUARY SO THE QUESTION HERE WAS SHOULD WE MAKE AN EFFORT THIS MONTH TO LARD OUR PAGE WITH WOMEN WRITERS NO IS THE SHORT ANSWER THE MAIN REASON OF COURSE IS THAT OP ED PAGES OR MAGAZINES AREN'T AFFIRMATIVE ACTION SCORE CARDS WHEN AN ARTICLE COMES INTO A PAPER EDITORS MEN AND WOMEN ASK QUESTIONS ABOUT IT IS THE ARTICLE TIMELY IS IT WELL WRITTEN ON A PAGE LIKE OURS WHICH STANDS FOR INDIVIDUAL LIBERTY WE MAY ASK WHAT DOES THIS SAY ABOUT FREE MARKETS RARELY IS OUR QUESTION IS THIS BY A WOMAN WHAT ELSE IS WEIRD ABOUT THIS DISCUSSION WELL FIRST OF ALL ITS TERMS ARE WRONG MS. WOLF WRITES THAT THE AGORA OF OPINION IS LARGELY A MEN'S CLUB YET A NUMBER OF WOMEN ARE REGULARS IN WHAT MS. WOLF HAS CALLED THE WHITE BOY ROLODEX ONE IS COLUMNIST MONA CHAREN ANOTHER IS LORETTA MCLOUGHLIN UNTIL RECENTLY EDITORIAL PAGE EDITOR OF THE BOSTON GLOBE ANNE APPLEBAUM IS FOREIGN EDITOR OF BRITAIN'S MOST INFLUENTIAL OPINION MAGAZINE THE SPECTATOR TWO WASHINGTON VOICES ARE NINA TOTENBERG AND COKIE ROBERTS MEG GREENFIELD RUNS THE WASHINGTON POST'S EDITORIAL PAGE THE JOURNAL'S EDITORIAL PAGE PRINTS A SLIGHTLY GREATER SHARE OF ARTICLES SUBMITTED BY WOMEN THAN BY MEN THE ASSISTANT EDITOR HERE IS MELANIE KIRKPATRICK DOROTHY RABINOWITZ AND MANUELA HOELTERHOFF ALSO WRITE WHY THEN THOSE PERCENTAGES ONE REASON IS THAT AGE THANK HEAVEN STILL HAS SOME AUTHORITY AND MANY OLDER WOMEN UNFORTUNATELY DIDN'T GET THE EXPERIENCE THAT YIELDS A PUNDIT ANOTHER IS ONE THAT MIGHT FIT IN WITH MS. WOLF'S ARGUMENT ALTHOUGH NOT AS SHE MEANS IT TO WOMEN ARE CIVILIZERS THEY CLICK THE REMOTE CONTROL PAST THE SCREAMERS ON QUOTE CROSSFIRE QUOTE BECAUSE THEY FIND THEM UNDIGNIFIED THE OP ED GAME ALTHOUGH IT TAKES PLACE IN THE TAMER PRINT WORLD CAN ALSO BE BRUTAL NOT EVERYONE LONGS TO SCRAMBLE LIKE A PIT BULL WITH HIS OR HER FELLOW OPINION MAKERS OVER A PIECE OF WEEK OLD MEAT UNFORTUNATELY SAYS MS. WOLF YOU CAN'T WRITE STRONG ASSERTIVE PROSE IF YOU ARE TOO ANXIOUS ABOUT PRESERVING CONSENSUS HERE WE GET TO THE NUB OF THE PROBLEM WHOSE CONSENSUS THE CONSENSUS OF COURSE OF SECOND GENERATION FEMINISTS LIKE MS. WOLF YET THIS IS A COTERIE A SMALL GROUP WHO ARE THE RECENT PRODUCT OF HUMANITIES DEPARTMENTS OF FANCY UNIVERSITIES MS. WOLF AND I ATTENDED THE SAME COLLEGE IN THE SAME YEARS SO HERE I CAN SPEAK WITH AUTHORITY THE SAD FACT ABOUT THESE WOMEN IS THAT THEIR CONSENSUS IS NOT ALWAYS INTERESTING WHAT EXACTLY DOES THIS NARROW GROUP WRITE ABOUT THEY WRITE ABOUT SEX ABOUT THEIR WEIGHT ABOUT THEMSELVES AS VICTIMS PASSIVE BUT INSTITUTIONALIZED DISCRIMINATION IN MS. WOLF'S WORDS THEY DO SO BECAUSE THAT IS WHAT THAT LIMITED CONSENSUS TELLS THEM IS THEIR ISSUE PRE CHILDBEARING WOMANHOOD PER SE IS NOT HOWEVER THE NUMBER ONE ISSUE FOR A LARGE GROUP A GROUP INCLUDING ALL AGES AND BOTH SEXES FOR THOSE PEOPLE WE DO PRINT ARTICLES ARTICLES THAT INDEED OCCASIONALLY HAVE FEMALE AUTHORS ON HEALTH CARE ELIZABETH MCCAUGHEY ON NORTH KOREA'S BOMB HEATHER WILSON ON JUVENILE DELINQUENTS WITH SHOTGUNS RITA KRAMER WOLF STYLE REVOLUTIONARY ZEAL SPITS ON SUCH WOMEN'S ACCOMPLISHMENTS FOR IT VIEWS THEM AS TRAPPED IN A CULTURAL CAGE DOMINATED BY MEN NEVER MIND G. A. T. T. OR FOREIGN POLICY DOCTRINES OR PROPERTY PRICES OR WHATEVER ELSE JOURNALISTS WHO HAPPEN TO BE WOMEN CONCERN THEMSELVES WITH WRITES A WRY ANNE APPLEBAUM IN A RESPONSE TO MS. WOLF WE COULD ALL CALL OURSELVES FEMINISTS ONE SEEMS TO NEED NO CREDENTIALS AND THEN EARN LOTS OF MONEY THE MOST CONCRETE DAMAGE OF WORK LIKE MS. WOLF'S IS THE QUOTA IZATION OF NEWSPAPERS GROUPS LIKE WOMEN MEN AND MEDIA QUANTIFY REFERENCES TO WOMEN IN PAPERS AND FEMALE BYLINES AND THEN USE THOSE FIGURES TO THREATEN THE RESULT IS LOWER QUALITY ONE OP ED EDITOR FROM ANOTHER NEWSPAPER TOLD ME THAT HE GOT A WATCHDOG CALL FROM A COLLEAGUE WARNING THE PAGE HAD TOO FEW FEMALE BYLINES THE PAGE INSTANTLY INSTITUTED A THIRTY THREE PERCENT QUOTA BEING SURVEILLED IS UNPLEASANT HE SAID WORSE THOUGH IS QUOTE THAT THE CONTENT DOESN'T MATTER AT ALL BUT SIMPLY THE GENDER OF THE BYLINE QUOTE LESS DIRECT BUT AS PAINFUL IS THE DISSERVICE NEW REVOLUTIONARY FEMINISTS DO TO THE OLDER WOMEN WHO WENT BEFORE US THESE WERE THE REAL PIONEERS WOMEN WHO FOUGHT PALPABLE INJUSTICE IN THE DAYS WHEN A WOMAN'S PLACE REALLY WAS WIPING GRINDS AT THE COFFEE MACHINE MS. WOLF DISDAINS JEANE KIRKPATRICK WHOSE BATTLE AT THE U. N. AGAINST SEXIST COMMUNISTS AND THIRD WORLD JERKS HELPED END THE COLD WAR THE AMBASSADOR'S CRIME WRITING IN AN OBJECTIVE NO UTERUS STYLE THAT IS UNINFLECTED BY THE EXPERIENCE OF THE FEMALE BODY THE UNHAPPY CONSEQUENCE OF ATTACKS ON NO UTERUS WRITING IS A NEW GHETTO IZATION THUS THE OLD SEXIST NEW YORK TIMES EDITORIAL PAGE FEATURED FOREIGN AFFAIRS WRITER FLORA LEWIS THE NEW SENSITIVE TIMES GIVES US ANNA QUINDLEN A DOYENNE OF MATERNAL PROSE BY MS. WOLF'S OWN DESCRIPTION IS THIS PROGRESS THE TRUTH THOUGH IS THAT NEWSPAPERS WILL PRINT NO UTERUS ARTICLES ALL THE TIME BECAUSE THEY CONTAIN FACTS BECAUSE THEY EXCITE BECAUSE THEY ARE NOT MUSINGLY SOLIPSISTIC WELL RATTLE THE BARS ON YOUR CAGE NAOMI MIGHT SAY WELL I MIGHT RESPOND RATTLE THE BARS ON YOURS MISS SHLAES THE JOURNAL'S OP ED EDITOR HOPES THIS ARTICLE WILL FILL SOME WOMEN QUOTAS PAUL NEWMAN'S STAR IS FADING AT LEAST AMONG SUPERMARKET SHOPPERS NOT THAT FRANK SINATRA AND PHYLLIS GEORGE ARE DOING MUCH BETTER MOST CELEBRITY BRANDS ARE FARING POORLY THESE DAYS BECAUSE OF THE WEAK ECONOMY SHOPPERS HAVE BECOME MORE PRICE CONSCIOUS AND CELEBRITY PRODUCTS SELL AT PREMIUM PRICES BUT THE POOR PERFORMANCE OF MR. NEWMAN'S PRODUCTS ONE OF THE RARE CELEBRITY FOOD LINES TO SUCCEED SINCE ITS INCEPTION IN NINETEEN EIGHTY TWO MAY SIGNAL A MORE FUNDAMENTAL SHIFT QUOTE I THINK WE ARE JUST LESS IMPRESSED THAN WE USED TO BE QUOTE SAYS JUDITH LANGER A CONSUMER BEHAVIOR EXPERT IN NEW YORK THERE IS SO MUCH PRICE SHOPPING TODAY PEOPLE ARE MUCH LESS WILLING TO PAY UP UNLESS THEY FEEL THERE IS A GOOD REASON AND DEEP BLUE EYES IT SEEMS AREN'T REASON ENOUGH SUPERMARKET SALES OF NEWMAN'S OWN SALAD DRESSINGS MR. NEWMAN'S ORIGINAL PRODUCT DECLINED FOUR POINT ONE PERCENT DURING THE FIFTY TWO WEEKS ENDED OCTOBER TENTH COMPARED WITH THE SAME PERIOD LAST YEAR ACCORDING TO INFORMATION RESOURCES INCORPORATED'S INFOSCAN SERVICE SALES OF NEWMAN'S OWN SPAGHETTI SAUCES LEMONADE AND POPCORN ALSO DECLINED THE ONE BRIGHT SPOT IN THE LINE NEWMAN'S OWN ALL NATURAL BANDITO SALSA FRANK SINATRA'S AND TOMMY LASORDA'S SPAGHETTI SAUCES ARE ALSO HAVING A ROCKY TIME THE SINATRA PRODUCTS WERE LICENSED BY A NEW COMPANY EARLIER THIS YEAR AND THE LASORDA PRODUCTS ARE ABOUT TO GET A NEW MARKETING FIRM ALTHOUGH BOTH CELEBRITIES' SAUCES CAN BE FOUND ON SOME SUPERMARKET SHELVES THEIR SALES ARE PLUNGING ACCORDING TO INFORMATION RESOURCES THE HEYDAY FOR CELEBRITY BRANDS IN PACKAGED GOODS WAS THE MID NINETEEN EIGHTIES BUT EVEN THEN THEY BARELY ENJOYED THEIR FIFTEEN MINUTES IN THE LIMELIGHT WHO REMEMBERS GLORIA VANDERBILT SALAD DRESSING OR DIANE VON FURSTENBERG FACIAL TISSUES HOW ABOUT BILL BLASS CHOCOLATES AND YVES SAINT LAURENT CIGARETTES MANY CELEBRITY PRODUCTS FAILED SIMPLY BECAUSE THEIR QUALITY WASN'T GOOD ENOUGH OR BECAUSE THEY WERE SOLD BY TINY COMPANIES WITHOUT MUCH MARKETING CLOUT THE STREAM OF NEW CELEBRITY BRANDS HAS SLOWED SINCE THEN BUT MARKETERS HAVEN'T GIVEN UP NEWMAN'S OWN IS TESTING PRETZELS ON THE WEST COAST AND TINY TKI FOODS INCORPORATED BASED IN SPRINGFIELD ILLINOIS WHICH RECENTLY ACQUIRED THE LICENSE FOR THE FRANK SINATRA LINE OF SAUCES IS ROLLING OUT FOUR NEW PRODUCTS INCLUDING A MARSALA SAUCE THE NAME GETS CONSUMERS' ATTENTION SAYS BRENDA EDEN MARKETING MANAGER FOR THE SINATRA LINE AT TKI THERE ARE THOUSANDS OF ITEMS IN THE SUPERMARKET AND YOU'VE GOT ABOUT THREE SECONDS TO GET SHOPPERS TO TAKE A SECOND LOOK MARKETING EXPERTS SAY THERE'S SOMETHING TO THAT THEORY A SMALL COMPANY THAT CAN'T AFFORD NATIONAL ADVERTISING WOULD FIND IT HARD TO GET SPACE ON SUPERMARKET SHELVES FOR A NEW SPAGHETTI SAUCE FOR EXAMPLE BUT SNAG A CELEBRITY THAT HAS SOME CREDIBILITY TO PITCH THE PRODUCT AND IT WILL WIND UP IN AT LEAST A FEW SHOPPING CARTS ANOTHER MUST A BIG PRODUCT CATEGORY SUCH AS PASTA SAUCE AND SALAD DRESSINGS WITH PLENTY OF ROOM FOR NICHE PLAYERS THERE ARE ONLY A HANDFUL OF CANDIDATES THAT ARE SUCCESSFUL SAYS RICHARD REISER PRESIDENT OF COGITO A NEW PRODUCT DEVELOPMENT COMPANY IN TARRYTOWN N. Y. THE CELEBRITY MUST BE A CREDIBLE SPOKESMAN AND THE PRODUCT MUST DELIVER COUNTRY WESTERN ENTERTAINER JIMMY DEAN MADE A HIT WITH HIS LINE OF BREAKFAST SAUSAGES WHICH HAVE BEEN ON THE MARKET SINCE NINETEEN SIXTY EIGHT PARTLY BECAUSE HIS DOWN HOME IMAGE MESHED NICELY WITH THE IDEA OF BIG HEARTY BREAKFASTS MR. DEAN WHO SOLD HIS COMPANY TO SARA LEE CORPORATION IN NINETEEN EIGHTY FOUR HAS ALSO PLAYED AN ACTIVE ROLE IN PROMOTING THE PRODUCTS APPEARING IN COMMERCIALS AND ON SOME OF THE PACKAGING MR. NEWMAN STRUCK A NERVE WITH SHOPPERS PARTLY BECAUSE HE IS LIKED BY BOTH MEN AND WOMEN AND THE PRODUCTS ARE BILLED AS NATURAL BUT MARKETING EXPERTS ALSO ATTRIBUTE THE SUCCESS OF NEWMAN'S OWN TO ITS POLICY OF DONATING ITS AFTER TAX PROFITS TO CHARITY A STRATEGY THAT MAKES SOME SHOPPERS FEEL GOOD ABOUT THE ITEMS QUOTE PEOPLE THINK HE IS A GOOD GUY THEY FIND OUT IT'S A DECENT PRODUCT AND THEY KNOW THE MONEY IS GOING TO CHARITY QUOTE MR. REISER SAYS SO WHY NOT BUY IT HERE'S THE DARK REFLECTION OF ALL THOSE STOCK OFFERINGS THAT SOARED LAST YEAR CASTLE ENERGY A RADNOR PENNSYLVANIA OIL AND GAS COMPANY IS FAST TURNING INTO A NIGHTMARE FOR KIDDER PEABODY AND COMPANY AND THE BAD DREAM MAY NOT BE OVER YET FOR INVESTORS EVEN THOUGH CASTLE ENERGY SHARES BOUNCED UP ONE QUARTER YESTERDAY TO TEN AND THREE EIGHTHS ON THE NASDAQ STOCK MARKET THE STORY STARTS WITH WHAT HAS TO BE ONE OF THE WORST TIMED SECURITIES OFFERINGS OF RECENT YEARS THE KIDDER LED NOVEMBER TWENTY FOURTH SALE OF TWO POINT EIGHT MILLION ADDITIONAL SHARES OF CASTLE ENERGY WITHIN DAYS THE STOCK PRICE OF CASTLE ENERGY'S FORTY PERCENT OWNER AND SOLE CUSTOMER METALLGESELLSCHAFT OF GERMANY BEGAN SLUMPING IN FRANKFURT THE GERMAN COMPANY WAS SOON GRAPPLING WITH NEAR CRIPPLING FINANCIAL PROBLEMS THAT PUSHED IT CLOSE TO A GERMAN BANKRUPTCY LAW FILING IN RECENT DAYS MEANWHILE CASTLE ENERGY SHARES SOLD IN THE OFFERING HAVE PLUNGED THIRTY ONE PERCENT IN JUST TWO MONTHS DURING THE WEEKEND METALLGESELLSCHAFT AGREED TO A ONE POINT NINE BILLION DOLLAR RESCUE PACKAGE WITH CREDITORS AND CASTLE ENERGY SHARES RALLIED TO AS HIGH AS TWELVE AND ONE HALF YESTERDAY BEFORE EBBING TO TEN AND THREE EIGHTHS BUT SOME TRADERS BET CASTLE ENERGY SHARES WILL CONTINUE TO FALL DESPITE THE GERMAN COMPANY'S BAILOUT PACKAGE EVEN IF THE GERMAN COMPANY SURVIVES IT WILL HAVE TO CUT COSTS THERE ARE QUOTE MORE ROCKY ROADS AHEAD QUOTE FOR CASTLE ENERGY SAYS ANALYST ASHOK VASVANI OF GRANTCHESTER SECURITIES IN NEW YORK PAPERS FILED WITH THE U. S. SECURITIES AND EXCHANGE COMMISSION LAST WEEK BY METALLGESELLSCHAFT SAY THAT IN CONNECTION WITH THE GERMAN COMPANY'S FINANCIAL RESCUE PLAN IT MAY DETERMINE TO RETAIN RESTRUCTURE DISPOSE OF OR PLEDGE CERTAIN ASSETS INCLUDING ITS CASTLE ENERGY SHARES WORD OF THE S. E. C. FILING DATED JANUARY ELEVENTH HASN'T YET GOTTEN AROUND ON WALL STREET AND SOME INVESTORS WILL PROBABLY BE INCLINED TO BRUSH IT ASIDE FIGURING THE IMMEDIATE CRISIS IS PAST BUT IT'S STILL POSSIBLE THAT INVESTORS WILL SEE METALLGESELLSCHAFT'S HOLDING AS A BIG BLOCK OF STOCK OVERHANGING THE MARKET WEIGHING ON THE PRICE WHILE THE GERMAN COMPANY HASN'T DECIDED TO SELL THE STAKE YET THERE CAN BE NO ASSURANCES THAT IT WILL NOT DO SO IN THE FUTURE THE S. E. C. FILING SAYS ASKED TO UPDATE THE FILING YESTERDAY A NEW YORK SPOKESMAN FOR METALLGESELLSCHAFT SAID THERE'S NO CHANGE IN THAT MEANWHILE THE QUESTION REMAINS IN INVESTORS' MINDS DID KIDDER OR CASTLE ENERGY KNOW THERE WAS TROUBLE AFOOT WHEN THEY LAUNCHED THE PUBLIC OFFERING LAST NOVEMBER KIDDER WON'T COMMENT SAYING IT DOESN'T DISCUSS INVESTMENT BANKING CLIENTS OTHER INVESTMENT BANKERS SAY THAT KIDDER PROBABLY WAS AS SURPRISED AS INVESTORS AND THE GERMAN COMPANY'S BOARD WHICH SACKED SOME METALLGESELLSCHAFT SENIOR MANAGERS INCLUDING THE CHAIRMAN IN DECEMBER FOR ALLEGEDLY WITHHOLDING INFORMATION IF LITIGATION ARISES KIDDER HAS SOME PROTECTION LAST WEEK'S S. E. C. FILING INCLUDES A LETTER FROM METALLGESELLSCHAFT'S U. S. OFFICE TO KIDDER DATED NOVEMBER TWENTY FOURTH THE LETTER PROMISES THAT THE GERMAN CONCERN WILL HOLD HARMLESS AND INDEMNIFY KIDDER AND OTHER UNDERWRITERS FROM LOSS IF THERE PROVES TO BE AN UNTRUE STATEMENT OR ALLEGED UNTRUE STATEMENT OF A MATERIAL FACT REGARDING METALLGESELLSCHAFT IN THE CASTLE ENERGY PROSPECTUS FOR EXAMPLE CASTLE ENERGY BUYERS WOULD HAVE LIKED TO HAVE KNOWN WHAT CASTLE ENERGY DIDN'T DISCLOSE UNTIL LAST FRIDAY THAT THE GERMAN COMPANY'S FINANCIAL WOES COULD HAVE A MATERIAL ADVERSE EFFECT ON CASTLE WHICH RELIES TOTALLY UPON METALLGESELLSCHAFT UNDER A CONTRACT METALLGESELLSCHAFT BUYS OIL PRODUCTS FROM CASTLE ENERGY WHICH PROCESSES AS MUCH AS ONE HUNDRED TWENTY SIX THOUSAND BARRELS A DAY AT MUCH HIGHER PRICES THAN AN INDEPENDENT BUYER WOULD PAY WHY A FEW YEARS AGO THE GERMAN COMPANY WAS EAGER TO EXPAND IN THE U. S. AND DIDN'T HAGGLE TOO HARD THIS COZY ARRANGEMENT HAS BEEN JUST FINE FOR CASTLE ENERGY UNTIL NOW BUT IT DOESN'T LOOK SO HOT NOW THAT METALLGESELLSCHAFT WILL BE LOOKING TO CUT COSTS MR. VASVANI SAYS QUOTE MY POINT IS I'M SURE NOW THAT METALLGESELLSCHAFT HAS BEEN SAVED BUT THEY'RE GOING TO BE UNDER TREMENDOUS SCRUTINY QUOTE EVERY CONTRACT PARTICULARLY ONE AS SEEMINGLY ONE SIDED AS THE CASTLE ENERGY ONE WILL BE UNDER QUESTION HE SAYS THE BOARD WILL DO EVERYTHING AND ANYTHING TO GET OUT OF LOSING PROPOSITIONS AND THIS IS A LOSING PROPOSITION IT MAKES NO SENSE SO WHAT IS CASTLE ENERGY STOCK WORTH IF THE COMPANY DOESN'T HAVE ITS CONTRACT WITH METALLGESELLSCHAFT PICK A NUMBER ANYTHING FROM FOUR TO NINE SAYS MR. VASVANI CASTLE ENERGY'S CHAIRMAN AND CHIEF EXECUTIVE JOSEPH L. CASTLE COULDN'T BE REACHED FOR COMMENT YESTERDAY IN A STATEMENT FRIDAY HOWEVER HE INDICATED THAT CASTLE ENERGY ISN'T SITTING BACK AND ASSUMING ITS RELATIONSHIP WITH METALLGESELLSCHAFT WILL CONTINUE AS IT HAS HE SAID HIS COMPANY IS EXPLORING WITH VARIOUS INVESTMENT BANKING FIRMS STRATEGIES FOR DEALING WITH THE M. G. SITUATION AND VARIOUS CONTINGENCIES IT IS UNCERTAIN WHETHER METALLGESELLSCHAFT WILL HONOR ALL OF ITS CONTRACTUAL OBLIGATIONS ALTHOUGH IT INTENDS TO THE STATEMENT WARNED THIS WARNING WAS A MARKED CHANGE FROM JUST A MONTH AGO WHEN CASTLE ENERGY RESPONDED TO THE GERMAN COMPANY'S FINANCIAL PROBLEMS AND A SUBSEQUENT DECLINE IN CASTLE ENERGY STOCK BY ASSURING INVESTORS QUOTE WE HAVE NO REASON TO BELIEVE M. G. WILL NOT CONTINUE TO HONOR ALL ITS OBLIGATIONS TO CASTLE ENERGY QUOTE CASTLE ENERGY ROSE ONE AND ONE HALF THAT DAY IN FACT SOME ANALYSTS CONTINUE TO BELIEVE THAT CASTLE ENERGY HAS A PROMISING FUTURE AFTER ITS TWO MONTHS OF TURMOIL IT'S BEEN THE PERILS OF PAULINE BUT IT LOOKS LIKE EVERYTHING'S CALMED DOWN NOW SAYS ERIC PETERSEN OF PENNSYLVANIA MERCHANT GROUP WHO BASES HIS OPTIMISM ON THE FACT THAT METALLGESELLSCHAFT'S BANK CREDITORS HAVE AGREED TO THE RESCUE PACKAGE THE ONLY QUESTION HE SAYS HAD BEEN WHETHER METALLGESELLSCHAFT WOULD SURVIVE OR NOT BUT I THINK THE BIGGEST QUESTIONS ARE OVER WITH STILL SMALL INVESTORS SHOULD KEEP IN MIND THAT THIS IS STILL A TENUOUS SITUATION FOR CASTLE ENERGY AT LEAST ONE PROMINENT INVESTOR APPARENTLY HAS REALIZED THIS MUTUAL FUND MANAGER MICHAEL PRICE HELD TWO HUNDRED FIFTY TWO THOUSAND CASTLE ENERGY SHARES IN HIS ONE BILLION DOLLARS MUTUAL BEACON FUND AS OF LAST YEAR ACCORDING TO REGULATORY FILINGS MR. PRICE WOULDN'T COMMENT YESTERDAY BUT AN ASSOCIATE SAYS WE SOLD ABOUT THREE WEEKS AGO EVEN BEFORE THE METALLGESELLSCHAFT FINANCIAL WOES CASTLE ENERGY WAS A RISKY BET FOR INVESTORS IT IS AN ODDBALL COMPANY SAYS MICHAEL SPOHN HEAD OF RESEARCH AT JOHN S. HEROLD INCORPORATED AN OIL AND GAS INVESTMENT RESEARCH FIRM QUOTE THE VALUE OF THE COMPANY RELIES ON THIS CONTRACT WITH M. G. AND THERE ARE OFFICERS OF M. G. ON THE BOARD OF THIS COMPANY QUOTE THE SUCCESS OF NOVEMBER'S STOCK OFFERING SAYS MR. SPOHN HIGHLIGHTS THAT IN THIS FROTHY EQUITY MARKET FOR NEW ISSUES AND SECONDARY OFFERINGS ANY DEAL WILL GO YOUR MOTHER'S LOOKING HUNGRY KID THE PUNISHMENT FITS THE TIME BRINGS ME TO THE BRINK OF PROFANITY IN THE EVER TURBULENT WORLD OF RETAIL LAST WEEK WAS ANOTHER SERIES OF UPS AND DOWNS THE SPECIALTY CHAIN MERRY GO ROUND CAPSIZED AFTER NAVIGATING THE TREACHEROUS WATERS OF YOUTH APPAREL AN EARLIER BANKRUPT MACY'S WAS THE DARLING OF SUITORS AMID SPECULATION OF A COMEBACK BY DEPARTMENT STORES AND OVERALL SALES IN THE U. S. CLOSED THE YEAR STRONG ENOUGH TO SEND THE BOND MARKET BACK INTO A FUNK IN DODGEVILLE WISCONSIN MEANWHILE THE BARELY INTERRUPTED CLIMB OF CATALOG CLOTHIER LANDS' END ACCELERATED TOO ITS NOVEMBER DECEMBER HOLIDAY ORDERS WERE UP TWENTY SIX PERCENT OVER THE PREVIOUS YEAR AND FOR THE FISCAL YEAR TO DATE THE GAIN IS NINETEEN PERCENT IF SOMETHING IS GOING RIGHT IN THE LARGER CONSUMER ECONOMY IT IS DECIDEDLY COPACETIC IN MAIL ORDER MANY OF THE OTHER HOUSES SPIEGEL IS THE ONLY APPAREL SPECIALIZER BIGGER THAN LANDS' END ALSO ARE DOING WELL DEPARTMENT STORES HERE AND ABROAD ARE CHUCKING BALLAST AS PART OF THEIR REVIVAL BUT LANDS' END ALONG WITH OTHER DIRECT MARKETERS SET THE LEAN SCENE SALES PER EACH OF ITS FIVE THOUSAND SIX HUNDRED EIGHTY ONE EMPLOYEES EXCEED THE RETAIL INDUSTRY AVERAGE BY TWENTY PERCENT AFTER SOME STUMBLES IN THE EARLY NINETEEN NINETIES LANDS' END APPEARS TO BE APPROACHING ITS TORRID GROWTH OF NINETEEN EIGHTY SEVEN TO NINETY WHEN SALES MORE THAN DOUBLED AT THE CURRENT RATE THE COMPANY WILL EASILY EXCEED EIGHT HUNDRED FIFTY MILLION DOLLARS IN ORDERS WHEN FISCAL NINETEEN NINETY FOUR ENDS THIS MONTH IN PURSUING EXPANSION LANDS' END FLOUTS A CARDINAL PRINCIPLE OF THE CONTEMPORARY MARKETPLACE IT BUILDS INVENTORY THIS SHOWS HOW QUOTE MARKEDLY DIFFERENT QUOTE THE MAIL ORDER TRADE IS FROM REGULAR RETAILING SAYS WILLIAM T. END WHOSE APPOINTMENT A YEAR AGO CAPPED HIS EMERGENCE AS LEADER OF A NEW MANAGEMENT TEAM AT THE THIRTY YEAR OLD COMPANY DESPITE THE NAME MR. END IS NO SCION HE CAME FROM RIVAL L. L. BEAN COMPLETE INVENTORY IS VITAL TO CEMENTING CUSTOMER LOYALTY MR. END SAYS AND AT LANDS' END IF WE DON'T KEEP THE CUSTOMER FOR SEVERAL YEARS WE DON'T MAKE MONEY WE NEED A LONG TERM PAYBACK FOR THE EXPENSE OF COMING UP WITH A BUYER HE MOSTLY MEANS THE COST OF FLOODING OUR MAILBOXES WITH CATALOGS MORE ON THAT IN A BIT WHEREAS A DEPARTMENT STORE SHOPPER MAY BE RESIGNED TO MISSING SIZES AND COLORS THE MAIL ORDER MARKET ISN'T SO FORGIVING SO LANDS' END MAKES GOOD ON BACK ORDERS AT ITS OWN MAILING EXPENSE A RAFT OF THOSE THREE YEARS AGO SHAVED THE CORPORATION'S PROFIT MARGIN TO FOUR POINT ONE PERCENT THE INVENTORY PULLBACK THAT MAY HAVE SAVED SO MANY SKINS IN THE LAST RECESSION DIDN'T WORK AT LANDS' END DETERMINED TO BE IN STOCK NINETY PERCENT OF THE TIME MR. END SAYS HE AUTHORIZED MORE THAN TWENTY MILLION DOLLARS OR NEARLY TEN PERCENT EXTRA IN INVENTORY FOR THIS CHRISTMAS SEASON WITH THE CONSUMER RUSH LANDS' END STILL MISSED THE NINETY PERCENT TARGET BY A COUPLE OF POINTS WITH U. S. PRODUCERS ACCOUNTING FOR A SHRINKING SHARE OF LANDS' END MERCHANDISE ALTHOUGH STILL EIGHTY PERCENT ACCORDING TO MR. END IT IS TOUGHER FOR SURE TO MAINTAIN SUPPLIES BUT DOABLE WITH THE ALWAYS IMPROVING CONTROL SYSTEMS AVAILABLE MR. END EXPECTS DEPARTMENT STORES TO CONTINUE TO LOSE A POINT OR TWO A YEAR OF MARKET SHARE TO COMPETITORS INCLUDING THE CATALOG SELLERS WHICH HE FIGURES NOW COMMAND SIX PERCENT TO SEVEN PERCENT NOTWITHSTANDING THE DEMISE OF THE SEARS BOOK AND A GENERAL LULL UNTIL LATELY DIRECT MARKETING IS A LIKELY WINNER IN THE QUOTE VALUE QUOTE DECADE MR. END SAYS THE BIG NEW PRESENCE OF COURSE IS HOME SHOPPING BY TELEVISION NOW ONLY TWO POINT FIVE BILLION DOLLARS AGAINST NEARLY FIFTY FIVE BILLION DOLLARS BY MAIL CATALOGS BUT GAINING AND IF ELECTRONIC SALES ARE THE BIG GROWTH FIELD MR. END SUGGESTS LANDS' END IS READIER THAN MOST IT IS USED TO TAKING ORDERS IN A WAY THAT STORES ARE NOT AND IT'S TRYING ON SIX DIGITAL VENUES FOR DISPLAYING GOODS RESULTS THERE ARE NOT EARTH SHATTERING TO DATE MR. END ADMITS THE NEW MARKETING MODE POSES TWO BIG CHALLENGES AS LANDS' END SEES IT THE FIRST IS GOING FROM FLAT PRINT TO MOTION IN ITS PRESENTATION IT HAS DABBLED IN TELEVISION ADS BUT INFOMERCIALS OR TRUE INTERACTIVE SELLING IS ANOTHER MATTER PUTTING TOGETHER THIRTY MINUTES IS MORE LIKE A DOCUMENTARY COMPARED TO THIRTY SECONDS IT REQUIRES MORE PROJECTION OF A STORY A MESSAGE MR. END SAYS THE SECOND DIFFICULTY INVOLVES RETRIEVABLE DATA BASE CATALOGS THE WORRY HERE IS HOW TO TRIGGER A RESPONSE FROM THE TARGET CONSUMER A FULL COLOR MAILING IS DIFFICULT TO IGNORE BUT MR. END WONDERS HOW TO PROMPT THE TECHNOPHILE TO CALL UP THAT CRITICAL FIRST LOOK THE TELECOMMUNICATIONS AGE ALREADY HAS HELPED MAIL ORDER ENORMOUSLY THE ONSET OF WIDESPREAD INSTANT CREDIT VIA VISA MASTERCARD ET CETERA AND THE EIGHT HUNDRED NUMBER REVOLUTIONIZED THE BUSINESS ADD OVERNIGHT DELIVERY SERVICES AND THE WAIT TO QUOTE TOUCH QUOTE THE PRODUCT HAS VIRTUALLY VANISHED A MORE CONTENTIOUS FACTOR IS INCREASING STATE SALES TAXES WHICH MOST MAIL ORDER CUSTOMERS AVOID LIKE MOST IN THE INDUSTRY MR. END DISCOUNTS THE EFFECT THESE LEVIES HAVE PARTICULARLY AFTER HIGHER DELIVERY COSTS NEGATE MUCH OF THE SAVINGS FROM BUYING TAX FREE CATALOG OPERATIONS ARE ALWAYS FEARFUL THAT CONGRESS WILL ACCEDE TO STATE REQUESTS FOR NATIONWIDE COLLECTION BUT THE AMOUNTS INVOLVED ARE NOT TRIVIAL WHEN SEEN CUMULATIVELY BASED ON A PROJECTION FROM NINETEEN EIGHTY EIGHT FIGURES CALIFORNIANS WHO PAY MORE THAN EIGHT PERCENT SALES TAX IN SOME JURISDICTIONS ARE SAVING FIVE HUNDRED MILLION DOLLARS A YEAR BUYING BY MAIL AND FOR SOME INDIVIDUAL PURCHASES SUCH AS JEWELRY OR COMPUTERS THE DIFFERENCE IS SUBSTANTIAL A NINETEEN NINETY ANALYSIS IN THE JOURNAL OF RETAILING FOUND THE ABSENCE OF A SALES TAX QUADRUPLES CATALOG MARKET SHARES FOR EXPENSIVE ITEMS MR. END MAINTAINS THAT VALUE PRICING IS WHAT MATTERS HE CAN SELL A TWELVE DOLLAR WHOLESALE SHIRT AT TWENTY THREE DOLLARS AND MAKE HIS MARGIN WHILE A RETAIL STORE MIGHT PRICE IT AT FORTY FIVE DOLLARS WHAT HAPPENED OVER THE PAST FIVE YEARS HOWEVER IS THAT THOSE SHOPS WERE CUTTING THAT FIGURE DEEPLY AND REGULARLY THAT BLOODLETTING IN THE MALLS COMBINED WITH THE RECESSION AND THE BIG POSTAL INCREASES THAT BELIEVE IT OR NOT PARED THE NUMBER OF CATALOGS EACH MAIL ORDER SELLER COULD AFFORD TO SEND PROBABLY ACCOUNTED FOR THE PAUSE THAT THE LANDS' ENDS OF AMERICA ENDURED IN A SENSE THEN THE FATES OF THE STORES AND THE DIRECT MERCHANTS MAY BE LINKED ANY COMEBACK BY THE DEPARTMENT CHAINS ALONG WITH A THINNING OF THEIR RANKS COULD RESTRAIN THE RED TAGGING OF MERCHANDISE AND KEEP THE PRICE CONSCIOUS COMING TO DODGEVILLE IN THE MEANTIME MR. END WILL SHORE UP INVENTORY LOOK FOR A WAY TO SELL IN BITS AND BYTES AND MAYBE JUST MAYBE HOPE THE TAX HUNGRY STATES WILL KEEP INCHING THEIR SALES LEVIES TOWARD THE DOUBLE DIGITS LAST WEEK I PUT THE NUMBER OF U. S. CONSTRUCTION TRADE JOBS AT THREE POINT EIGHT MILLION BETTER NUMBERS ARRIVED FROM THE BUREAU OF LABOR STATISTICS MAKE IT FOUR POINT THREE MILLION NOT COUNTING SUPERVISORS ALL THE MORE REASON TO EXPECT BIG EMPLOYMENT GAINS IF THE UNION LOCKHOLD ON TRAINING CAN BE BROKEN VENEZUELA DECIDED TO REVISE ITS NEW UNPOPULAR VALUE ADDED TAX WHICH COULD HAVE RAISED TWO BILLION DOLLARS THIS YEAR AND ELIMINATED HALF THE GOVERNMENT DEFICIT SHOPKEEPERS NOW MUST GET GOVERNMENT PERMISSION TO COLLECT THE VAT EFFECTIVELY SUSPENDING IT AT THE RETAIL LEVEL WHERE IT WAS INTRODUCED JANUARY FIRST CRITICS SAID STORES USED THE TAX AS AN EXCUSE FOR BIG PRICE INCREASES THE GOVERNMENT WANTS TO ENSURE VAT REVENUE GETS TO THE TREASURY VENEZUELA ADOPTED THE INDIRECT SALES TAX PAID ON PRODUCTS AND SERVICES AT EACH STAGE OF OUTPUT OR DISTRIBUTION TO WIDEN THE TAX BASE AS OIL REVENUE SHRINKS THE VAT WAS APPLIED OCTOBER FIRST AT THE WHOLESALE LEVEL WHERE IT STAYS IN FORCE THE REVISION MOVE FOLLOWED THE BOLIVAR STATE GOVERNOR'S REFUSAL TO COLLECT WHAT HE TERMED AN UNJUST AND BADLY IMPLEMENTED VAT AND HIS PLEA TO WAIT UNTIL PRESIDENT RAFAEL CALDERA TAKES OFFICE FEBRUARY SECOND MR. CALDERA FAVORS REPLACING THE VAT WITH HIGHER TAXES ON THE RICH BRITISH GAS SETTLED FOR ONE POINT TWO MILLION DOLLARS A CASE FILED BY SIXTEEN WOMEN WHO CLAIMED BIAS IN BEING FORCED TO RETIRE IN NINETEEN EIGHTY SIX AT AGE SIXTY WHILE MEN WERE ALLOWED TO WORK UNTIL THEY WERE SIXTY FIVE THE WOMEN WHO HAD HELD CLERICAL OR SALES POSTS AT THE NATIONAL GAS SUPPLIER HAD COMPLAINED TO THE EUROPEAN COURT OF JUSTICE THE EUROPEAN UNION'S HIGHEST COURT UNISON THE HEALTH AND PUBLIC SERVICES UNION SAID THE OUT OF COURT PACT CLEARED THE WAY FOR MORE THAN FOUR HUNDRED OTHER UNION MEMBERS TO MAKE SIMILAR SEX DISCRIMINATION CLAIMS CONSUMPTION OF ALCOHOLIC BEVERAGES IN AUSTRALIA BETWEEN NINETEEN EIGHTY AND NINETEEN NINETY ONE FELL TWENTY PERCENT DOUBLE THE WORLD WIDE DROP OF TEN PERCENT ACCORDING TO THE THIRTY FIRST WORLD DRINK TRENDS SURVEY THE DISTILLED SPIRITS INDUSTRY COUNCIL OF AUSTRALIA SAID QUOTE WE ARE PORTRAYED AS A COUNTRY OF BEER SWILLING HEAVY DRINKERS YET THE FIGURES SHOW THAT AUSTRALIANS ARE MODERATE CONSUMERS OF ALCOHOL QUOTE AUSTRALIA RANKED SEVENTEENTH IN WORLD ALCOHOL CONSUMPTION THE SURVEY FOUND GERMANS DRANK THE MOST BEER ONE HUNDRED FORTY THREE QUARTS A PERSON IN NINETEEN NINETY ONE WITH AUSTRALIANS ELEVENTH AT ONE HUNDRED EIGHT QUARTS DOWN FROM THEIR ONE HUNDRED THIRTY SIX POINT FIVE QUART PEAK IN NINETEEN SEVENTY FOUR TO SEVENTY FIVE CHINESE STATE OWNED ENTERPRISES' EARNINGS AND EFFICIENCY WERE POOR LAST YEAR THE OFFICIAL CHINA DAILY SAID IN THE FIRST ELEVEN MONTHS THIRTY FOUR PERCENT OF THE FIRMS WERE UNPROFITABLE COMPARED WITH TWENTY FIVE PERCENT OF FOREIGN FUNDED AND PRIVATELY OWNED INDUSTRIES AND FIFTEEN POINT FIVE PERCENT OF INDUSTRIAL COLLECTIVES IN NOVEMBER FOR EVERY ONE HUNDRED YUAN ELEVEN DOLLARS AND FIFTY CENTS SPENT ON PRODUCTION STATE FACTORIES GENERATED ONLY FOUR POINT SIX SEVEN YUAN IN PROFITS UNDER MARKET REFORMS BEIJING HAS REDUCED SUBSIDIES TO STATE FIRMS IN A BID TO MAKE THEM PROFITABLE THE EUROPEAN UNION AND SEVEN EAST EUROPEAN NATIONS AGREED TO ALIGN THE EASTERN GOVERNMENTS' STATISTICS WITH NORMS OF THE E. U. THE FORMER EUROPEAN COMMUNITY THE TWELVE MEMBER E. U. WILL HELP STATISTICS AGENCIES IN BULGARIA THE CZECH REPUBLIC HUNGARY POLAND ROMANIA SLOVAKIA AND SLOVENIA DEVELOP THEIR DATA GATHERING SYSTEMS AND TRAIN PERSONNEL THE E. U. CONSIDERS ACCURATE AND POLITICALLY IMPARTIAL DATA ESSENTIAL TO WINNING PUBLIC CONFIDENCE FOR REFORMS AND BUILDING DEMOCRACIES HONG KONG'S GROWING TRADE TIES WITH CHINA HAVE CAUSED A SURGE IN CORRUPTION THE BRITISH COLONY'S ANTIGRAFT CHIEF TOLD THE AMERICAN CHAMBER OF COMMERCE LAST YEAR CASES OF ALLEGED CORRUPTION IN THE PRIVATE SECTOR JUMPED FIFTY TWO PERCENT AND INCLUDING THOSE IN THE PUBLIC SECTOR INCREASED FORTY FOUR PERCENT THIS WAS ATTRIBUTED TO MORE WILLINGNESS TO REPORT CORRUPTION AND EAGERNESS TO PROFIT FROM BOOMING TRADE BEFORE CHINA ASSUMES SOVEREIGNTY IN NINETEEN NINETY SEVEN AN ANTIGRAFT AGENCY SURVEY FOUND THAT SEVENTY PERCENT OF HONG KONG COMPANIES ROUTINELY GAVE GIFTS TO OFFICIALS IN CHINA WHICH IS CAMPAIGNING TO ELIMINATE BRIBERY AND OTHER CORRUPT PRACTICES TURKMENISTAN'S PRESIDENT VOWED TO SPEED UP CAPITALIST REFORMS SAYING PRIVATIZATIONS MUST BECOME THE BASIS FOR THE FORMER SOVIET REPUBLIC'S ECONOMY FOLLOWING HIS WEEKEND REFERENDUM VICTORY EXTENDING HIS TERM FOR FIVE YEARS UNTIL TWO THOUSAND TWO SAPARMURAT NIYAZOV ALSO PREDICTED TURKMENISTAN'S GROSS NATIONAL PRODUCT WOULD TRIPLE BY TWO THOUSAND SINCE THE U. S. S. R. COLLAPSED THE ECONOMY OF TURKMENISTAN A DESERT COUNTRY OF FOUR POINT TWO MILLION PEOPLE BORDERING IRAN HAS BOOMED PACED BY NATURAL GAS EXPORTS THE REFORM PLAN CALLS FOR SELLING OFF ALL SMALL TRADE AND SERVICE FIRMS BY THE END OF NEXT YEAR LESS THAN TEN PERCENT OF THEM ARE IN PRIVATE HANDS NOW A SMALL STOCK EXCHANGE IS TO BE SET UP IN THE CAPITAL OF ASHGABAT IN FEBRUARY OR MARCH TO HELP PRIVATIZE LARGE ENTERPRISES AND BIG MANUFACTURERS MAY SWITCH TO JOINT STOCK OWNERSHIP THIS YEAR BANKS WILL BE OPENED TO FOREIGN JOINT VENTURES AND BY NINETEEN NINETY SIX SOME BANKS ARE TO BE FREED OF STATE CONTROL PARIS NAMED A STREET IN THE FIFTEENTH DISTRICT ALONG THE SEINE RIVER AFTER ERNEST HEMINGWAY HONORING THE AMERICAN WHO WROTE HIS FIRST NOVELS IN THE FRENCH CAPITAL IN THE NINETEEN TWENTIES COLLECTIVE BARGAINING IN SPAIN LAST YEAR PRODUCED A FIVE POINT EIGHT PERCENT AVERAGE WAGE INCREASE MOSTLY OFFSET BY FOUR POINT NINE PERCENT ANNUAL INFLATION MOSCOW WILL CHARGE FOREIGN TOURISTS IN THE RUSSIAN CAPITAL A DAILY TARIFF OF ONE DOLLAR PAYABLE IN HARD CURRENCY THE ITARTASS NEWS AGENCY SAID IT DIDN'T SAY HOW THE TAX WILL BE COLLECTED THE LEVY WON'T APPLY TO BUSINESS VISITORS OR CITIZENS OF MOST FORMER SOVIET REPUBLICS CHINA BOWED TO U. S. PRESSURE AND AGREED TO LIMIT THE GROWTH IN ITS TEXTILE EXPORTS TO THE U. S. OVER THE NEXT THREE YEARS ALTHOUGH OTHER DISPUTES SUCH AS ON HUMAN RIGHTS ISSUES REMAIN THE TEXTILE ACCORD AVERTED A TRADE WAR AND COULD MAKE IT EASIER FOR THE U. S. TO REWARD CHINA WITH BROADER TRADE BENEFITS LATER SPECIFICALLY IT BOOSTS CHINA'S CHANCES OF WINNING AN EXTENSION OF FAVORED TRADE STATUS AND GAINING ENTRY INTO THE GENERAL AGREEMENT ON TARIFFS AND TRADE A GENEVA BASED WORLD ORGANIZATION THAT SETS RULES FOR WORLD TRADE U. S. TRADE REPRESENTATIVE MICKEY KANTOR SAID THERE WAS QUOTE NO LINKAGE WHATSOEVER QUOTE BETWEEN THE TEXTILE PACT AND OTHER TRADE BENEFITS BUT HE SAID THE AGREEMENT IS THE BEGINNING OF A HEALTHIER AND MORE PRODUCTIVE RELATIONSHIP THE U. S. BELIEVES CHINA HAS SKIRTED QUOTAS BY SHIPPING TEXTILES THROUGH THIRD COUNTRIES AND PUTTING THOSE COUNTRIES' LABELS ON THE PRODUCTS TO COMPENSATE THE NEW AGREEMENT WILL FREEZE CHINA'S QUOTA FOR NINETEEN NINETY FOUR AT NINETEEN NINETY THREE LEVELS AND LIMIT GROWTH TO ONE PERCENT IN EACH OF THE NEXT TWO YEARS A FIVE YEAR PACT THAT EXPIRED AT THE END OF LAST YEAR HAD ALLOWED FOR FOUR POINT FOUR PERCENT ANNUAL INCREASES THE NEW AGREEMENT MEANS A REDUCTION OF SEVEN HUNDRED MILLION DOLLARS OR THIRTEEN PERCENT IN WHAT CHINA'S TOTAL QUOTA WOULD HAVE BEEN FOR THE THREE YEARS HAD THE PREVIOUS GROWTH RATE BEEN ALLOWED STILL THAT REDUCTION IS CONSIDERABLY SMALLER THAN THE TWENTY FIVE PERCENT TO THIRTY FIVE PERCENT CUT THAT WASHINGTON THREATENED TO IMPOSE IF THE TWO SIDES FAILED TO REACH A COMPROMISE BY YESTERDAY WE WOULD LIKE TO SEE THE CHINESE GOVERNMENT BEGIN TO ACT IN TRADE AND OTHER AREAS AS PART OF A WORLD COMMUNITY IN A WAY THAT WE WOULD ALL FIND TO BE APPROPRIATE AND HELPFUL SAID MR. KANTOR THE U. S. TRADE REPRESENTATIVE THIS IS A SITUATION IN WHICH THEY HAVE DONE SO THE NEW PACT PROVIDES THAT WASHINGTON COULD CUT CHINA'S QUOTA BY THREE TIMES THE AMOUNT OF ANY FUTURE ILLEGAL SHIPMENTS THIS OPTION WOULD TAKE EFFECT ONLY AFTER TWO INFRINGEMENTS BY CHINA AND ANY PENALTIES IMPOSED WOULD BE SPREAD OUT OVER THE THREE YEAR AGREEMENT PERIOD THE U. S. SAYS CHINESE COMPANIES TRANSSHIP OR EXPORT THROUGH THIRD COUNTRIES ABOUT TWO BILLION DOLLARS OF GOODS TO THE U. S. EACH YEAR CHINA ALSO AGREED TO LET U. S. GOVERNMENT OFFICIALS CONDUCT SURPRISE INSPECTIONS OF CHINESE COMPANIES SUSPECTED OF ENGAGING IN ILLEGAL TRANSSHIPMENT CHINESE OFFICIALS COULD ACCOMPANY SUCH INSPECTION GROUPS THE COMPANIES COULD UNDER LOCAL LAW DENY THE GROUPS ENTRY IN THE ABSENCE OF A SEARCH WARRANT FROM CHINESE AUTHORITIES MR. KANTOR INSISTED THAT THE NEW RESTRICTIONS WOULDN'T HAVE A SIGNIFICANT IMPACT ON U. S. CONSUMERS AND WERE NECESSARY TO PROTECT JOBS IN THE U. S. THE ASSERTION COMES AMID CRITICISM THAT CONSUMERS PAY HIGHER PRICES BECAUSE OF U. S. TARIFFS AND QUOTAS PROTECTING THE TEXTILE AND APPAREL INDUSTRY THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON RESEARCH GROUP CALLED TEXTILE TRADE BARRIERS THE MOUNT EVEREST OF U. S. TRADE PROTECTION IN A RECENT STUDY IT SAID THEY COST U. S. CONSUMERS TWENTY FOUR BILLION DOLLARS A YEAR THE TEXTILE AGREEMENT COMES JUST BEFORE A VISIT TOMORROW TO BEIJING BY U. S. TREASURY SECRETARY LLOYD BENTSEN WHO WOULD BE THE HIGHEST RANKING OFFICIAL OF THE CLINTON ADMINISTRATION TO VISIT CHINA CHINA'S FOREIGN TRADE MINISTER WU YI SAID THE TEXTILE AGREEMENT CAN CREATE A VERY POSITIVE ATMOSPHERE FOR THE UPCOMING VISIT OF SECRETARY BENTSEN IN A SECOND DOCUMENT THE TWO SIDES AGREED TO LIMIT THE GROWTH IN CHINESE EXPORTS OF SILK TO THE U. S. TO ONE PERCENT EACH YEAR U. S. OFFICIALS SAID THIS WAS THE FIRST TIME THE TWO COUNTRIES HAVE SIGNED AN AGREEMENT GOVERNING SILK APPAREL FOLLOWING THE RAPID INCREASE OF CHEAP SILK EXPORTS BY CHINA TO THE U. S. LAST YEAR CHINA EXPORTED ABOUT TWO POINT TWO BILLION DOLLARS IN SILK GARMENTS TO THE U. S. COMPARED WITH TOTAL TEXTILE EXPORTS TO THE U. S. OF ABOUT SEVEN POINT TWO BILLION DOLLARS BOTH SIDES SHOWED RELIEF AND EXUBERANCE AT A SIGNING CEREMONY FOR THE TEXTILE AGREEMENT LATE YESTERDAY IN BEIJING THE THREE DAYS OF NEGOTIATIONS HAD INCLUDED TALKS STRETCHING PAST MIDNIGHT THE U. S. NEGOTIATORS NEARLY WALKED OUT YESTERDAY AFTERNOON JUST A FEW HOURS BEFORE THEY WERE SCHEDULED TO BOARD A PLANE AND AFTER REPORTERS HAD ALREADY BEEN GATHERED FOR THE SIGNING CEREMONY AFTER THE SIGNING MS. WU PUT HER ARM AROUND THE CHIEF U. S. NEGOTIATOR JENNIFER HILLMAN AND THE TWO CLINKED CHAMPAGNE GLASSES QUOTE COOPERATION HAS THE BEST FUTURE QUOTE MS. WU SAID LAUGHING THE CHINESE PLACE GREAT IMPORTANCE ON MR. BENTSEN'S VISIT THE U. S. WILL CONSIDER LATER THIS YEAR WHETHER TO RENEW CHINA'S MOST FAVORED NATION STATUS WHICH ALLOWS BEIJING TO SHIP PRODUCTS INTO THE U. S. AT THE LOWEST TARIFF LEVELS THE U. S. IMPOSES MOREOVER BY WINNING ENTRY INTO G. A. T. T. CHINA WOULD GAIN SIGNIFICANT BENEFITS FROM A SWEEPING TRADE AGREEMENT THAT ONE HUNDRED SEVENTEEN MEMBERS OF THE GROUP COMPLETED LAST MONTH REDUCING TRADE BARRIERS AROUND THE WORLD SUCH MEMBERSHIP ALSO WOULD BOOST CHINA'S STATUS AS A PLAYER IN THE WORLD ECONOMY BUT SIGNIFICANT TRADE DISPUTES WITH THE U. S. CONTINUE TO SIMMER FOR ONE THING THE U. S. IS THREATENING TO CRACK DOWN ON CHINA FOR NOT PROTECTING COPYRIGHTS NEGOTIATIONS OVER THAT DISPUTE ARE SUPPOSED TO START LATER THIS MONTH THE U. S. WANTS CHINA TO AGREE TO AN ENFORCEMENT PLAN BY MIDMARCH AND IS THREATENING TO INITIATE TRADE SANCTIONS IF CHINA DOESN'T COMPLY GUPTA CORPORATION IN MENLO PARK CALIFORNIA SAID IT EARNED TWO POINT NINE NINE MILLION DOLLARS OR TWENTY THREE CENTS A SHARE IN THE FOURTH QUARTER MORE THAN TRIPLE THE YEAR AGO LEVEL AS SALES ROSE SHARPLY NET INCOME FOR THE YEAR EARLIER PERIOD WAS NINE HUNDRED SIXTY ONE THOUSAND DOLLARS OR NINE CENTS A SHARE QUARTERLY SALES ROSE SIXTY FOUR PERCENT TO EIGHTEEN MILLION DOLLARS FROM ELEVEN MILLION DOLLARS A YEAR EARLIER THE RESULTS EXCEEDED ANALYSTS' EXPECTATIONS FOR EARNINGS OF ABOUT NINETEEN CENTS A SHARE AND THE FAST GROWING SOFTWARE FIRM'S STOCK ROSE ELEVEN POINT FIVE PERCENT OR TWO POINT ONE TWO FIVE DOLLARS TO TWENTY POINT SIX TWO FIVE DOLLARS IN TRADING ON THE NASDAQ STOCK MARKET WE'VE BEEN FOLLOWING BILL CLINTON'S REMARKABLE TOUR ACROSS THE CAPITALS OF EUROPE DELIVERING ELOQUENT SPEECHES IN BRUSSELS CAPTURING THE FROZEN HANDS AND HEARTS OF MUSCOVITES UNBURDENING UKRAINE OF ITS NUCLEAR MISSILES BONDING WITH TED KOPPEL HOWEVER IT WASN'T UNTIL WE AWOKE YESTERDAY MORNING TO READ THAT MR. CLINTON IN A FIVE HOUR TALK CONVINCED HAFEZ ASSAD OF SYRIA TO GIVE PEACE A CHANCE THAT WE STARTED TO LOOK FOR SIGNS OF TINKERBELL DUST AFTER TALKING TO MR. CLINTON PRESIDENT ASSAD EMERGED SMILING LIKE THE CAT WHO'D SWALLOWED THE CANARY TO DECLARE QUOTE IN HONOR WE FOUGHT IN HONOR WE NEGOTIATE AND IN HONOR WE SHALL MAKE PEACE QUOTE WITH THIS TRIUMPH SECURED AND PRESS ACCOUNTS ANNOUNCING THAT THE BURDEN NOW LAY UPON ISRAEL MR. CLINTON FLEW HOME NO DOUBT ANYTHING IS POSSIBLE IN OUR SURPRISING WORLD AND WE DON'T WANT TO WHOLLY DISMISS THE POSSIBILITY THAT PRESIDENT CLINTON DID IN FACT BAPTIZE HAFEZ ASSAD INTO THE COMMUNITY OF CIVILIZED NATIONS WE COULD NOT HELP BUT NOTICE HOWEVER THAT THIS REMARKABLE BREAKTHROUGH WAS SOMETHING OF A PIECE WITH SIMILAR SUCH REMARKABLE BREAKTHROUGHS ON THE PRESIDENT'S TRIP ABROAD FOR INSTANCE WE HAVE IN OUR MIND'S EYE THE PICTURE OF UKRAINE'S VOLUBLE BUT CANNY PRESIDENT LEONID KRAVCHUK CHEERFULLY ALLOWING HIMSELF TO BE WON OVER TO MR. CLINTON'S VIEW THAT UKRAINE SHOULD SHIP ITS NUCLEAR WARHEADS INTO RUSSIA MR. CLINTON DESCRIBED THIS COMMITMENT AS A HISTORIC BREAKTHROUGH AND IT MADE FRONT PAGES EVERYWHERE IT DEVELOPS THAT MR. KRAVCHUK COULD MERRILY ACCEDE TO THE PLAN DEVISED BY THE STATE DEPARTMENT'S STROBE TALBOTT BECAUSE THE FINAL CALL ISN'T MR. KRAVCHUK'S TO MAKE UKRAINE'S CABINET AND PARLIAMENT MUST RATIFY THE AGREEMENT AND IN THE PAST HAVE BALKED AT EXPOSING THE COUNTRY'S SECURITY TO RUSSIAN GOODWILL BUT AS WITH ISRAEL CLINTON AIDES BELIEVE THE DEAL SHIFTS THE BURDEN ONTO UKRAINE'S PARLIAMENT DAYS LATER MR. CLINTON WAS IN MOSCOW WHERE PRESIDENT YELTSIN CONFIDENTLY ASSURED HIS AMERICAN VISITOR THAT THE RUSSIAN REFORM MOVEMENT WAS ON TRACK NO SOONER HAD MR. CLINTON LIFTED OFF FOR GENEVA WHEN YEGOR GAIDAR THE ARCHITECT OF MR. YELTSIN'S ECONOMIC REFORMS HANDED IN HIS RESIGNATION WE CAN'T HELP BUT MARVEL AND WONDER AT THE AIR OF DETACHED CALM WITH WHICH MR. CLINTON PASSES THROUGH SUCH EVENTS DURING THE YEARS OF THE COLD WAR ONE COULD WORRY THAT A CREDULOUS WESTERN LEADER WOULD INVEST TOO MUCH FAITH IN THE ASSURANCES OF AN ASSAD OR SOMEONE LIKE HIM A LONG CONSENSUS AGAINST NAIVETE IN DOING DANGEROUS DEALS GUARDED AGAINST SUCH INSTINCTS NOW IN THE YEARS AFTER THE COLD WAR NEW TECHNIQUES ARE EVOLVING MR. CLINTON'S CONTRIBUTION MIGHT BE CALLED THE POWER OF POSITIVE ASSERTION ASSERT PEACE OR SOME OTHER SUCH HISTORIC BREAKTHROUGH AND LET THE LEADERS OF AN ISRAEL OR UKRAINE BE SEEN AS STANDING IN THE WAY YESTERDAY ISRAELI OFFICIALS SUGGESTED A VERY CONTEMPORARY RESPONSE TO THIS PRESSURE THEY SAID ANY AGREEMENT CONVEYING THE GOLAN HEIGHTS TO MR. ASSAD MOST LIKELY WOULD HAVE TO BE SUBMITTED TO A POPULAR REFERENDUM UKRAINIANS WILL SELECT A NEW PARLIAMENT IN MARCH WITH MR. CLINTON'S NUCLEAR WARHEAD BREAKTHROUGH NO DOUBT AT THE CENTER OF IT ON BALANCE IT IS REASSURING MR. CLINTON GETS HIS FOREIGN TRIUMPHS BORNE HOME TO A DOMESTIC AUDIENCE LIVING ON A TWENTY FOUR HOUR NEWS SCHEDULE BUT THE PEOPLE WHO WOULD LIVE WITH THOSE TRIUMPHS HERE THE ISRAELIS AND UKRAINIANS GET TO VOTE THEIR OWN BELIEFS ON NATIONAL SECURITY ONTARIO HYDRO NORTH AMERICA'S SECOND LARGEST UTILITY SAID IT EXPECTS TO RECORD CHARGES OF AS MUCH AS THREE POINT FIVE BILLION CANADIAN DOLLARS TWO POINT SIX FOUR BILLION U. S. DOLLARS AGAINST ITS NINETEEN NINETY THREE NET INCOME UP FROM EARLIER FORECASTS THAT THEY WOULD REACH ONE POINT SIX BILLION CANADIAN DOLLARS THE EXACT SIZE OF THE CHARGE WON'T BE DISCLOSED UNTIL FEBRUARY WHEN THE STATE OWNED UTILITY EXPECTS TO COMPLETE A STUDY OF ITS SURPLUS GENERATING CAPACITY SOME OF THE CHARGES WILL BE RELATED TO THE SALE AND SLASH OR CLOSURE OF SOME GENERATING CAPACITY UTILITY SOURCES SAID ABOUT SIX HUNDRED MILLION CANADIAN DOLLARS OF THE LOSS WILL COME FROM SEVERANCE COSTS AS HYDRO SLASHES JOBS THROUGHOUT THE ORGANIZATION WITH THE REMAINDER BEING WRITE DOWNS ON ASSETS AND CHARGES RELATED TO THE CANCELLATION OF URANIUM SUPPLY CONTRACTS AND ENERGY PURCHASES FROM OTHER PROVINCIAL UTILITIES IN CANADA ELEANOR CLITHEROE CHIEF FINANCIAL OFFICER OF THE UTILITY SAID THE WRITE OFFS QUOTE WILL SIGNIFICANTLY IMPROVE HYDRO'S FUTURE NET INCOME PICTURE QUOTE THE UTILITY SAID IT EXPECTS TO REPORT A PROFIT OF SIX HUNDRED MILLION CANADIAN DOLLARS IN NINETEEN NINETY FOUR MS. CLITHEROE SAID THE UTILITY WON'T HAVE AN OPERATING LOSS FOR NINETEEN NINETY THREE DESPITE EARLIER FORECASTS OF A TWO HUNDRED MILLION CANADIAN DOLLAR LOSS AS A RESULT OF FALLING DEMAND FOR ELECTRICITY SHE SAID SHE EXPECTS THE UTILITY TO POST NET INCOME OF SIX HUNDRED MILLION CANADIAN DOLLARS IN NINETEEN NINETY FOUR RISING TO EIGHT HUNDRED EIGHTY FIVE MILLION CANADIAN DOLLARS BY NINETEEN NINETY SIX THESE FORECASTS ARE BASED ON THERE BEING NO INCREASE IN DEMAND FOR HYDRO'S ELECTRICITY OF THE TOTAL ESTIMATED CHARGES AND WRITE OFFS ONE POINT OH FIVE BILLION CANADIAN DOLLARS IS RELATED TO RESTRUCTURING INCLUDING STAFF CUTS THE REMAINDER RELATES TO ASSET WRITE DOWNS INCLUDING FIVE HUNDRED NINETY FIVE MILLION CANADIAN DOLLARS TO MARK THE COST OF HYDRO'S NUCLEAR FUEL INVENTORY TO MARKET THE CHARGES RELATED TO SURPLUS CAPACITY WILL RANGE FROM FORTY MILLION CANADIAN DOLLARS TO SIX HUNDRED FIFTY MILLION CANADIAN DOLLARS MS. CLITHEROE SAID THE CHARGES DON'T INCLUDE AN AMOUNT YET TO BE AWARDED TO DENISON MINES LIMITED A TORONTO BASED URANIUM MINING CONCERN RELATED TO CANCELED SUPPLY CONTRACTS SHE SAID THAT AMOUNT COULD RANGE FROM FORTY MILLION CANADIAN DOLLARS TO AS MUCH AS FOUR HUNDRED MILLION CANADIAN DOLLARS BUT THAT THE UTILITY ANTICIPATES THE FIGURE WILL BE AT THE LOWER END OF THAT RANGE ARBITRATORS ARE EXPECTED TO REACH THEIR DECISION BY SPRING SHE ADDED HYDRO HAS RECEIVED SOME EXPRESSIONS OF INTEREST IN PURCHASING SOME GENERATING ASSETS MS. CLITHEROE SAID BUT SHE NOTED THAT IT IS TOO EARLY TO SAY WHETHER THESE ARE CONCRETE ENOUGH TO PURSUE MANY QUESTIONS STILL SURROUND THE PROSPECTS OF HYDRO STRUGGLING TO DEAL WITH A DEBT LOAD OF ABOUT THIRTY FOUR BILLION CANADIAN DOLLARS AND A DEBT TO EQUITY RATIO WHICH WILL HIT NINETY PERCENT IN THE WAKE OF THE WRITE DOWNS THE UTILITY'S CRITICS ANTICIPATE ASSET SALES AS WELL AS MORE WRITE DOWNS IN THE COMING YEARS THERE ARE A LOT OF ASSETS PARTICULARLY ON THE NUCLEAR GENERATION FRONT THAT ARE STILL WILDLY OVERVALUED SAID TOM ADAMS AN ANALYST AT ENERGY PROBE A TORONTO BASED LOBBY GROUP MS. CLITHEROE DECLINED TO SPECULATE ON THE LIKELIHOOD OF ALL OR PART OF HYDRO BEING PRIVATIZED IN THE COMING MONTHS NOTING THAT THIS WOULD REQUIRE SOME PUBLIC DEBATE AND A DECISION BY ONTARIO'S GOVERNMENT PACIFIC TELESIS INTERNATIONAL SAID ITS PROTO ITALIA CONSORTIUM FILED A PREQUALIFICATION APPLICATION TO OPERATE ITALY'S SECOND DIGITAL CELLULAR NETWORK COMPANIES WHO PASS THIS STAGE CAN THEN FORMALLY APPLY FOR THE CELLULAR LICENSE A FINAL DECISION ON THE OPERATOR IS EXPECTED BY THE END OF THE YEAR THE GOVERNMENT OWNED TELEPHONE OPERATOR SOCIETA ITALIANA PER L'ESERCIZIO TELEFONI IS CURRENTLY THE ONLY COMPANY PROVIDING CELLULAR SERVICE PACIFIC TELESIS A SUBSIDIARY OF PACIFIC TELESIS GROUP A SAN FRANCISCO TELECOMMUNICATIONS COMPANY OWNS A THIRTY THREE PERCENT INTEREST IN THE CONSORTIUM ALONG WITH GERMAN AND ITALIAN INVESTORS THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS CLOSED FOR HOLIDAY DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FOUR MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT FIVE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT THREE AND FIVE SIXTEENTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT SIX MONTHS THREE AND THREE QUARTERS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT EIGHT PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY TENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT OH TWO PERCENT THIRTEEN WEEKS THREE POINT ONE EIGHT PERCENT TWENTY SIX WEEKS MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN FOUR PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS NEARLY TWO GENERATIONS FROM THE SUPREME COURT'S LANDMARK NINETEEN FIFTY FOUR BROWN VERSUS BOARD OF EDUCATION DECISION AND THIRTY YEARS AFTER MARTIN LUTHER KING'S NINETEEN SIXTY THREE QUOTE I HAVE A DREAM QUOTE SPEECH A CROP OF WELL SPOKEN AFFLUENT HIGHLY EDUCATED AND PROFESSIONALLY ACCOMPLISHED BLACK AMERICANS BLOOM FULL FLOWER ACROSS THE NATIONAL LANDSCAPE IN THE RAGE OF A PRIVILEGED CLASS HARPERCOLLINS ONE HUNDRED NINETY TWO PAGES TWENTY DOLLARS ELLIS COSE DESCRIBES HOW THIS GROUP IS FINDING THAT INTEGRATION IS NOT WORTH ITS COST IN SELF ESTEEM MANY AFFLUENT BLACKS MR. COSE ARGUES ARE ENGAGING IN PSYCHOLOGICAL SEGREGATION FROM WHITE MAINSTREAM AMERICA MR. COSE A CONTRIBUTING EDITOR AND ESSAYIST FOR NEWSWEEK MAGAZINE AND A BLACK MAN HIMSELF DETAILS THE OUTRAGES FACED BY MIDDLE CLASS BLACKS BECAUSE OF THEIR SKIN COLOR HIS BOOK IS A CONFESSIONAL CATALOG OF FRUSTRATIONS AND ANGER THAT MAY SHOCK SOME WHITE AMERICANS I REMEMBER FOR EXAMPLE HOW SOME WHITES WERE SHOCKED TO HEAR ARTHUR ASHE TELL AN INTERVIEWER THAT FIGHTING AGAINST RACISM WAS MORE DIFFICULT THAN HIS FATAL STRUGGLE AGAINST AIDS MANY WHITES VIEW SUCH OMNIPRESENT FIGURES AS BRYANT GUMBEL AND COLIN POWELL AS POSITIVE PROOF OF THE TRANSCENDENCE OF THE NATION'S RACIST PAST SO WHY ARE THESE BLACKS ANGRY MR. COSE ATTRIBUTES THE RAGE TO THE HURT PRIVILEGED BLACKS SUFFERED AS THEY TRIED AND FAILED TO FIT IN AMONG WHITE PEOPLE WHO OFTEN DON'T TRY PARTICULARLY HARD TO DISTINGUISH BETWEEN A MEDIA IMAGE OF A BLACK HOOLIGAN AND A COLLEGE EDUCATED BLACK STRIVER THE RESULTING RAGE IS HIDDEN BY THE MASKS OF ACHIEVEMENT WORN BY PROFESSIONAL BLACK PEOPLE WHO DO THEIR JOBS WITHOUT GIVING OFF A HINT OF THE ISOLATION THEY FEEL AMID THEIR WHITE CO WORKERS INTERESTINGLY A GRACIOUS PLENTY OF THE INTERVIEW SUBJECTS COME FROM HARVARD YALE AND OTHER IVY LEAGUE BASTIONS IMBEDDED IN MR. COSE'S SUBJECTS IS AN IMPLICIT ARGUMENT THAT IF A BLACK HARVARD TRAINED DOCTOR LAWYER HAS A RACE PROBLEM THEN IT MUST BE A SERIOUS PROBLEM WE LISTEN FOR INSTANCE AS AN EMINENTLY SUCCESSFUL CORPORATE LAWYER DUMPS A LIFETIME OF FRUSTRATION ON THE AUTHOR THE LAWYER RECALLS HIS HUMILIATION WHEN A JUNIOR SUBORDINATE REFUSED TO STEP ASIDE AS THEY BOTH ENTERED THEIR OFFICE BUILDING ONE MORNING THE BLACK MAN WAS REDUCED TO SPITTING OUT HIS NAME AND IDENTIFYING HIMSELF AS A PARTNER BEFORE GAINING ENTRY BECAUSE OF HIS COLOR HE FELT HE HAD A RIGHT TO CHECK ME OUT THE LAWYER SAYS QUOTE HERE I AM A BLACK MAN WHO HAS DONE ALL THE THINGS I WAS SUPPOSED TO DO QUOTE THEN THERE IS THE STORY OF THE NEW YORK TIMES REPORTER RUSHING TO CATCH A PLANE ONLY TO BE DETAINED BY AN OVERZEALOUS WHITE SECURITY OFFICIAL WHO HAS JUMPED TO THE ERRONEOUS CONCLUSION THAT SHE CAN ONLY BE IN SUCH A HURRY IF SHE IS FERRYING DRUGS AND WE HEAR A PUBLIC RELATIONS EXECUTIVE AT A MAJOR CORPORATION SELF DIAGNOSE AN ACUTE CASE OF COPING FATIGUE HER PSYCHOLOGICAL AILMENT STEMS SHE THINKS FROM THE FACT THAT HER RACE WAS NOT SEEN AS AN ASSET BUT AS SOMETHING SHE HAD TO OVERCOME ANGUISHED VOICES SUCH AS THESE ARE UNITED BY A SHARED SENSE THAT WHITE AMERICA HAS DISAPPOINTED THEM THE PROBLEM IS A BROKEN CONTRACT IN THE DAYS WHEN PROMISE OF RACIAL HARMONY FILLED THE AIR AT PUBLIC RALLIES MIDDLE CLASS BLACKS BELIEVED PERHAPS MORE AGGRESSIVELY THAN ANYONE ELSE IN THE DREAM OF AMERICA THEY WORKED HARD SAVED THEIR MONEY AND PROTESTED PEACEFULLY THE DEAL WAS THAT IN EXCHANGE THEIR CHILDREN WOULD GROW UP IN GOOD I. E. WHITE SCHOOLS SECURE PROFESSIONAL SLASH MANAGERIAL POSITIONS AND SHARE EQUALLY IN THE OPPORTUNITY PIE SO WHAT HAPPENED WHITE AMERICANS NEVER BOUGHT THIS VERSION OF THE AMERICAN DREAM INSTEAD MR. COSE SAYS WHITE AMERICANS POINTED TO THE PATHOLOGIES IN THE UNDERCLASS OF URBAN BLACK LIFE WITHOUT DISTINGUISHING THIS UNDERCLASS FROM THE BURGEONING UPSCALE END OF BLACK SUBURBIA WHEN THE MIDDLE CLASS BLACKS FINALLY REALIZED THAT BLACK SKIN DEFINED THEM MORE THAN EDUCATION INCOME OR PROFESSION THEY BEGAN A SILENT ANGRY WITHDRAWAL FROM A PREVIOUS GENERATION'S EFFORTS AT ASSIMILATION IF THERE WAS ONE SENTIMENT THAT CONSISTENTLY CAME THROUGH IN INTERVIEW AFTER INTERVIEW WITH VERY SUCCESSFUL BLACK PEOPLE IN ALL WALKS OF LIFE IT CAN BE SUMMED UP IN ONE PHRASE WE ARE TIRED OF WAITING MR. COSE WRITES HE LECTURES SOFTLY AS HE COMMUNICATES WHAT IS GOING ON IN THE EMERGING BUPPIEVILLES THOSE LITTLE KNOWN PLACES TO WHICH AN INCREASING NUMBER OF AFFLUENT BLACK AMERICANS ARE RETREATING TO AVOID CONTACT WITH WHITE PEOPLE MR. COSE NEITHER ADVOCATES NOR CRITICIZES THIS TREND HE DESCRIBES IT BUT HE DOES EXPRESS OUTRAGE TOWARD SUCH FIGURES AS SENATOR DANIEL PATRICK MOYNIHAN WHO REPEATEDLY APPEARS IN THE BOOK TO RAISE THE ALARM OF AN ENCROACHING BLACK UNDERCLASS THE PROBLEM AT THE TOP IS JUST AS SERIOUS TO AMERICA'S FUTURE AS ANYTHING AT THE BOTTOM MR. COSE RESPONDS ADDING THAT A NATION WHICH EMBITTERS THOSE STRUGGLING HARDEST TO BELIEVE IN IT AND TO WORK WITHIN ITS ESTABLISHED SYSTEMS IS UNDERMINING ANY EFFORT TO PROVIDE WOULDBE HUSTLERS AND DOPE DEALERS WITH AN ATTRACTIVE ALTERNATIVE TO THE STREETS FAILURE TO PAY HEED MR. COSE ARGUES VERY PERSUASIVELY WILL GENERATE A NATION DIVIDED BY RACE AND CLASS THAT MAY RIP APART THE IDEALISM OF THE BROWN DECISION AND KING'S DREAM MR. FULWOOD IS ON LEAVE AS WASHINGTON CORRESPONDENT OF THE LOS ANGELES TIMES GREG KINNEAR DOESN'T TAKE OVER BOB COSTAS'S CHAIR ON N. B. C.'S QUOTE LATER QUOTE UNTIL VALENTINE'S DAY TO BE TECHNICAL ONE THIRTY FIVE A. M. E. S. T. FEBRUARY FIFTEENTH BUT ONE THING IS CERTAIN HIS FIRST GUEST ON THE HALF HOUR SHOW WILL NOT BE A CROSSDRESSER A SIDESHOW PERFORMER OR TOBY THE NEUTER YOU SEE MR. KINNEAR PRONOUNCED KIN NEAR SEES ENOUGH OF THEM ON HIS DAY JOB AND HE'S NOT GIVING THAT ONE UP ANYTIME SOON AS THE TALKING HEAD AND HOST OF THE E. ENTERTAINMENT CHANNEL'S TALK SOUP THE HANDSOME THIRTY YEAR OLD PROVIDES THE SPICE THAT SEASONS THE DAILY DIGEST OF THE MOST OUTRAGEOUS CLIPS FROM THE DAYTIME TALKSHOW SUBCULTURE TWENTY SIX MILLION CABLE HOUSEHOLDS NOW RECEIVE E. WHICH RUNS TALK SOUP SEVERAL TIMES EACH DAY WHEN I STARTED ON THE SHOW I DIDN'T KNOW WHAT A HERMAPHRODITE WAS OR A CROSSDRESSER AND THIS TRANSSEXUAL BUSINESS I WASN'T AWARE OF IN THE FIRST COUPLE OF MONTHS I WAS JUST STUNNED AND AMAZED I'LL COME TO THE OFFICE NOW AND OUR PRODUCER WILL SAY O. K. WE'RE GOING TO LEAD OFF THE SHOW TODAY WITH A CLIP OF A CROSSDRESSING HERMAPHRODITE WITH ONE WOODEN LEG WHO JUGGLES FIREBALLS WHILE SINGING PHANTOM OF THE OPERA AND I'LL BE LIKE THAT'S IT GEEZ WE NEED SOMETHING BIG SAYS MR. KINNEAR WHO PAIRS FACIAL GYMNASTICS THAT WOULD MAKE SUNSET BOULEVARD'S NORMA DESMOND PROUD WITH A PLAYFUL VOICE THAT SEEMS BIOENGINEERED FOR RADIO WHAT STILL SHOCKS MR. KINNEAR QUOTE JOAN RIVERS HAD CIRCUS SIDESHOW PERFORMERS ON A COUPLE OF WEEKS AGO AND FEATURED A GENTLEMAN BY THE NAME OF MR. LIFTO WHO HAD TWO HUNDRED TATTOOS ON HIS BODY QUOTE MR. LIFTO HOISTED CINDER BLOCKS WITH CHAINS LOOPED THROUGH HIS NIPPLES WHEN I MENTION MY OWN FAVORITE A GUEST WHO CLAIMED TO BE BORN WITH NO SEXUAL ORGANS AND SAID HE WAS SHUNNED BY A TRULY SEXIST SOCIETY MR. KINNEAR KNOWS JUST WHO I MEAN AH TOBY THE NEUTER YES YES YES OH YES TOBY THE NEUTER HAS DONE COUNTLESS SHOWS I'VE PROBABLY SEEN HIM ON A DOZEN APPEARANCES OVER THE LAST COUPLE OF YEARS TOBY ISN'T THE ONLY PROFESSIONAL GUEST MR. KINNEAR SAYS AND I'LL SAY THAT A COUPLE ACTUALLY REDEFINE WHAT THEIR PROBLEM IS FROM SHOW TO SHOW THEY HAVE THIS PROBLEM BUT SINCE THE PRODUCER HAS ALREADY HEARD OF THAT THE PROBLEM HAS SINCE EVOLVED INTO SOMETHING WITH A SLIGHTLY DIFFERENT TWIST QUOTE TALK SOUP QUOTE TOO HAS CHANGED SINCE ITS DEBUT IN DECEMBER NINETEEN NINETY ONE AT FIRST MR. KINNEAR WAS JUST A SLIGHTLY SUBVERSIVE ANCHOR CONTRIBUTING A FUNNY FACE OR A WRYLY INFLECTED COMMENT TO BRIDGE THE SPACE BETWEEN TALK SHOW SNIPPETS FOR THE PAST SEVERAL MONTHS THOUGH HE HAS BEEN INVOLVING THE CREW ON CAMERA IN SKETCHES PLAYING WITH THE CLIPS THROUGH SPECIAL EFFECTS AND GENERALLY PUTTING MORE EMPHASIS ON THE CONNECTIVE MATERIAL IN THE LAST SIX MONTHS THAT SIDE OF THE SHOW DEFINITELY HAS EVOLVED MORE THAN ANYTHING I JUST LIKE DOING IT IT JUST MAKES WHAT I THINK COULD OTHERWISE BE A SOMEWHAT BORING SHOW A LITTLE MORE SPONTANEOUS I THINK IT'S A HELL OF A LOT MORE INTERESTING TO COME UP WITH A FEW MORE BELLS AND WHISTLES THAN TO JUST SIT UP THERE AND DO IT STRAIGHT MOST OF THE DAYTIME HOSTS ENJOY OR AT LEAST TOLERATE THE RIBBING JERRY SPRINGER AND MO GAFFNEY HAVE EVEN PINCH HIT FOR MR. KINNEAR BUT OPRAH AND DONAHUE WE'VE NEVER REALLY HAD MR. KINNEAR SAYS THE SHOWS MUST GRANT PERMISSION FOR THEIR CLIPS TO BE USED TALK SOUP RAN GERALDO NUGGETS FOR ABOUT A YEAR AND A HALF AND JUST OUT OF NOWHERE THIS SUMMER ABOUT THE TIME HE HAD THE FATTY TISSUE FROM HIS BUTTOCKS PUT INTO HIS FOREHEAD TO RELIEVE WRINKLES GERALDO RIVERA DECIDED TO STOP SHARING HIS STUFF WITH THE AWARD WINNING TALK SOUP THE HOMERIC EPITHET AWARD WINNING TALK SOUP IS DECLAIMED FREQUENTLY ON THE PROGRAM BUT JUST WHAT AWARD WAS WON IS A MYSTERY QUOTE I GO OUT TO ONE OF MY RARE DINNERS LAST NIGHT AT A RESTAURANT AND THE WAITER IS RECITING THE TWENTY OR THIRTY GOAT CHEESE PIZZAS AND I'M RIGHT HERE RIGHT HERE AT THIS TABLE AND BOOM PLOPS DOWN GERALDO AT THE NEXT ONE WE NEVER MAKE EYE CONTACT AND I REALLY DON'T KNOW WHAT I'M GOING TO SAY OR DO IF I DO MAKE EYE CONTACT YOU SEE I HAD TRIED TO FIND OUT WHAT THE PROBLEM WAS IF IT WAS SOMETHING I HAD DONE THAT MADE HIM PULL HIS SHOW FROM TALK SOUP LAST NIGHT BEFORE I HAD THE CHANCE TO TAKE ANY SORT OF POSITION OR DEVISE A STRATEGY THE HOSTESS CAME BACK TO THE BOOTH AND MOVED HIM TO ANOTHER TABLE I'M STILL WONDERING WHETHER HE MOVED BECAUSE I WAS SITTING THERE OR IF HE JUST WANTED A BETTER TABLE BUT I HONESTLY DON'T KNOW WHAT THE PROBLEM WAS OR WHY BECAUSE I THINK HE HAS A GOOD SHOW IT WAS A REAL SHAME TO LOSE HIM THIS LAST COMMENT IS MADE IN A TONE OF UTMOST SINCERITY IT IS HERE AND IN HIS PROFESSIONS OF ADMIRATION FOR THE OTHER DAYTIME HOSTS THAT MR. KINNEAR SHOWS HE IS TRULY THE SON OF A U. S. DIPLOMAT HIS FAMILY WAS IN BEIRUT WHEN WAR BROKE OUT IN NINETEEN SEVENTY FIVE HE SPENT HIS HIGH SCHOOL YEARS IN ATHENS AS FOR HIS COMEDIC FOREBEARS MR. KINNEAR HAS BEEN CALLED A LETTERMAN BABY BUT HE FROWNS AT THE LINKAGE IT'S ALWAYS HARD TO KNOW WHO INFLUENCES YOU AND WHAT EVENTS OR PEOPLE ARE RESPONSIBLE FOR THE CHARACTERISTICS THAT ARE IN YOU FROM A COMEDY OR PERFORMANCE STANDPOINT BUT I'VE ALWAYS LIKED JOHNNY CARSON I LIKE ROBIN WILLIAMS AND STEVE MARTIN THERE'S A WHOLE SLEW OF PERFORMERS I CAN RELATE TO WHEN IT COMES TO WHO IS RESPONSIBLE FOR THE MONSTER THAT IS GREG KINNEAR I DON'T KNOW WHO TO BLAME THE QUOTE MONSTER QUOTE HAS HIS FANS AND IF THE COMPUTER BULLETIN BOARDS DEVOTED TO HIM ON THE PRODIGY AND AMERICA ONLINE COMPUTER NETWORKS ARE ANY GUIDE MOST OF THESE ADMIRERS ARE FEMALE AND THE ATTRACTION IS NOT ENTIRELY INTELLECTUAL A REPRESENTATIVE PAEAN TO THE UNMARRIED MR. KINNEAR'S WIT AND NAUGHTY CHOIRBOY GOOD LOOKS IS HEADLINED GREG IS A GOD GORGEOUS HUNK OF A MAN IS THE MORE EARTHBOUND CHARACTERIZATION OF ANOTHER ADMIRER THESE DEVOTED FOLLOWERS ARE OILING THEIR V. C. R.S AND READYING VALENTINES FOR MR. KINNEAR'S DEBUT ON LATER AND WHAT WILL THEY ALONG WITH GARDEN VARIETY INSOMNIACS AND SHIFT WORKERS FIND IN THE WEE HOURS OF FEBRUARY FIFTEENTH I KNOW I'LL BE HOSTING AS OPPOSED TO BOB COSTAS I'VE THOUGHT ABOUT THAT FOR WEEKS THAT'S PRETTY MUCH WHAT I'VE BEEN DOING SINCE THANKSGIVING WHEN I GOT THE JOB MR. KINNEAR SAYS DURING OUR INTERVIEW HELD EARLY THIS MONTH QUOTE WE ARE ALSO GOING TO HAVE A LIVE STUDIO AUDIENCE WHICH INSTANTLY CHANGES THE TONE OF THE SHOW QUOTE WHILE THE NEW LATER WILL STILL DEVOTE ITS ENTIRE HALF HOUR TO A SINGLE GUEST THE PROGRAM UNLIKE THE COSTAS VERSION WILL BE TAPED ONLY A FEW HOURS BEFORE IT AIRS ANY DREAM GUESTS I WOULD LIKE TO GET JOHNNY CARSON FOR THE PREMIERE SHOW BUT I HEAR HE'S TOUGHER TO GET THAN THE POPE SO I'M TALKING TO THE POPE AND I HEAR HE'S TOUGHER TO GET THAN GARY COLEMAN YOU KNOW I THINK THERE'S A LOT OF PEOPLE I'D LIKE TO TALK TO STEVE MARTIN I'VE HEARD THAT BARRY GOLDWATER IS A GREAT GUEST THE GUY MIKE LEVEY WHO DOES AMAZING DISCOVERIES' MAYBE RON POPEIL WHO HAS COME UP WITH THE SPRAY PAINT HAIR FOR MEN I DON'T KNOW THE LIST OF GUESTS IS SOMETHING I HAVEN'T AT THIS STAGE GIVEN A GREAT DEAL OF TIME TO AT WHAT STAGE IS HE THE PANIC STAGE MS. PHILLIPS IS A JOURNAL ASSISTANT EDITORIAL FEATURES EDITOR THE DOW JONES INDUSTRIAL AVERAGE PLODDED TO ANOTHER HIGH AS INVESTORS CONTINUED TO FUNNEL CASH INTO ECONOMICALLY SENSITIVE STOCKS THE DOW INDUSTRIALS CLIMBED THREE POINT OH NINE POINTS TO THREE THOUSAND EIGHT HUNDRED SEVENTY POINT TWO NINE ITS EIGHTH RECORD THIS YEAR GAINS IN OIL STOCKS AND A HANDFUL OF INDUSTRIAL STOCKS PROPELLED THE INDEX OF THIRTY BLUE CHIP STOCKS HIGHER CATERPILLAR JUMPED TWO TO NINETY TWO AND ONE HALF GOODYEAR TIRE AND RUBBER ONE AND SEVEN EIGHTHS TO FORTY NINE AND ONE EIGHTH ALUMINUM COMPANY OF AMERICA ONE AND ONE QUARTER TO SEVENTY FOUR AND ONE QUARTER AND UNION CARBIDE ONE AND ONE EIGHTH TO TWENTY FOUR AND ONE QUARTER BUT THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX LOST ONE POINT SIX ONE POINTS TO FOUR HUNDRED SEVENTY THREE POINT THREE OH AND THE NASDAQ COMPOSITE INDEX EASED ZERO POINT ONE THREE TO SEVEN HUNDRED NINETY TWO POINT ONE EIGHT RETREATING FROM ITS RECORD SET FRIDAY DECLINING ISSUES OUTNUMBERED ADVANCERS ONE THOUSAND SEVENTY ONE TO NINE HUNDRED NINETY FOUR VOLUME ON THE NEW YORK STOCK EXCHANGE DROPPED TO TWO HUNDRED TWENTY SIX POINT FOUR MILLION SHARES THE SLOWEST SINGLE DAY THIS YEAR FROM THREE HUNDRED FIVE MILLION SHARES FRIDAY TRADING ACTIVITY WAS SLUGGISH AS MANY INVESTORS WERE AWAY FOR THE OBSERVANCE OF MARTIN LUTHER KING JUNIOR'S BIRTHDAY ANALYSTS SAID THAT DESPITE THE LACKLUSTER DAY INVESTORS WERE SNAPPING UP CYCLICAL STOCKS QUOTE WITH THE ECONOMY PICKING UP SPEED AND EARNINGS STARTING TO COME OUT INVESTORS ARE REALIZING THAT IT'S ECONOMICALLY SENSITIVE STOCKS WHICH ARE GOING TO PRODUCE THE EARNINGS GAINS QUOTE SAID THOMAS MCMANUS AN ANALYST AT MORGAN STANLEY MR. MCMANUS NOTED THAT SINCE THE START OF THE YEAR THE INVESTMENT BANK'S INDEX OF CYCLICAL STOCKS HAS CLIMBED THREE POINT FIVE TWO PERCENT WHILE ITS BAROMETER OF CONSUMER STOCKS HAS SUNK ONE POINT ONE THREE PERCENT STEVEN KROLL A MANAGING DIRECTOR AT MONNESS CRESPI AND HARDT SAID AN UPBEAT EARNINGS FORECAST FROM UNION CARBIDE HELPED TRIGGER THE GAINS IN THE CYCLICAL GROUP UNION CARBIDE ASTONISHED INVESTORS WHEN IT SAID THAT IT EXPECTS FOURTH QUARTER NINETEEN NINETY THREE EARNINGS TO BE ABOUT TWENTY FIVE CENTS A SHARE ON A FULLY DILUTED BASIS UP FROM TWELVE CENTS LAST YEAR AND ABOVE ANALYSTS' EXPECTATIONS MEANWHILE FARM MACHINERY STOCKS RALLIED AFTER A TRADE GROUP REPORTED ROBUST GAINS IN DECEMBER RETAIL SALES DEERE JUMPED THREE AND ONE EIGHTH TO SEVENTY NINE AND FIVE EIGHTHS AND TENNECO ROSE ONE AND THREE EIGHTHS TO FIFTY SIX AND ONE HALF BUT COCA COLA SLUMPED SEVEN EIGHTHS TO FORTY ONE AND FIVE EIGHTHS IN AN INTERVIEW IN BARRON'S RENOWNED MONEY MANAGER JOHN NEFF PANNED THE STOCK SAYING THAT IT COULD BE THE PHILIP MORRIS OF THIS OR MAYBE NEXT YEAR MEANWHILE MANY INVESTORS WERE PREOCCUPIED WITH REPORTS FROM SOUTHERN CALIFORNIA WHERE A SEVERE EARTHQUAKE KILLED AT LEAST TWENTY PEOPLE AND CAUSED EXTENSIVE DAMAGE AROUND LOS ANGELES SHARES OF PROPERTY AND CASUALTY INSURANCE COMPANIES SLIPPED ON CONCERNS ABOUT THE QUAKE'S COST SAFECO EASED ONE QUARTER TO FIFTY THREE AND SEVEN EIGHTHS ON THE NASDAQ STOCK MARKET WHILE ON THE BIG BOARD CHUBB FELL THREE EIGHTHS TO SEVENTY SEVEN AND THREE EIGHTHS ALLSTATE SLIPPED ONE TO TWENTY EIGHT AND FIVE EIGHTHS AND C. N. A. FINANCIAL DECLINED ONE AND THREE QUARTERS TO SEVENTY SIX AND ONE QUARTER PARAMETRIC TECHNOLOGY TUMBLED FIVE TO THIRTY THREE AND ONE QUARTER ON NASDAQ THE SOFTWARE COMPANY IN WALTHAM MASSACHUSETTS REPORTED NET INCOME OF TWENTY FIVE CENTS A SHARE FOR THE FIRST QUARTER ENDED JANUARY FIRST UP FROM FOURTEEN CENTS LAST YEAR AND IN LINE WITH ANALYSTS' FORECASTS SOME INVESTORS THOUGH WERE DISAPPOINTED WITH ITS REVENUE GROWTH QUALCOMM SKIDDED THREE AND ONE EIGHTH TO FIFTY ONE ON NASDAQ THE SAN DIEGO WIRELESS COMMUNICATIONS COMPANY REPORTED FIRST QUARTER EARNINGS OF EIGHTEEN CENTS A SHARE UP FROM A LOSS OF EIGHT CENTS LAST YEAR BUT SHORT OF THE TWENTY ONE CENTS MEAN ESTIMATE OF ANALYSTS SURVEYED BY I. B. E. S. THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM ARCHER DANIELS MIDLAND INCREASED ONE AND THREE EIGHTHS TO TWENTY FIVE AND SEVEN EIGHTHS THE COMPANY REPORTED EARNINGS OF FORTY FOUR CENTS A SHARE FOR THE SECOND QUARTER ENDED LAST MONTH VERSUS FORTY FIVE CENTS A YEAR EARLIER THE EFFECT OF COMMODITY PRICE INCREASES ON INVENTORY VALUATIONS CUT THE LATEST QUARTER'S INCOME BY SEVEN CENTS A SHARE INTERNATIONAL BUSINESS MACHINES LOST ONE AND ONE EIGHTH TO FIFTY SEVEN AND ONE HALF KEMPER SECURITIES ANALYST JOSEPH PAYNE DOWNGRADED HIS RATING ON THE ARMONK N. Y. COMPANY'S STOCK TO REDUCE FROM HOLD HE SAID THE STOCK IS OVERVALUED BASED ON BIG BLUE'S EARNINGS PERFORMANCE ROCKWELL INTERNATIONAL JUMPED ONE AND ONE HALF TO THIRTY NINE AND ONE EIGHTH AFTER THE AEROSPACE COMPANY IN SEAL BEACH CALIFORNIA REPORTED FIRST QUARTER EARNINGS OF SIXTY EIGHT CENTS A SHARE UP FROM FIFTY EIGHT CENTS A YEAR AGO AND ABOVE THE SIXTY TWO CENTS MEAN ESTIMATE REPORTED BY I. B. E. S. CAREMARK JUMPED ONE AND ONE HALF TO TWENTY ONE AFTER THE NORTHBROOK ILLINOIS COMPANY AGREED TO BUY MEDICAL CARE AMERICA'S HOME INFUSION UNIT FOR ONE HUNDRED SEVENTY FIVE MILLION DOLLARS SHARES OF MEDICAL CARE IN DALLAS EASED SEVEN EIGHTHS TO TWENTY THREE AND ONE EIGHTH AMERICAN DEPOSITARY RECEIPTS OF VOLVO SURGED FOUR AND ONE QUARTER TO EIGHTY ONE AND ONE EIGHTH HEDGE FUND MANAGER GEORGE NOBLE MADE POSITIVE COMMENTS ABOUT THE SWEDISH AUTO MAKER IN AN INTERVIEW PUBLISHED IN THIS WEEK'S BARRON'S MAGAZINE SHARES OF MANY LARGE CONSUMER PRODUCTS ORIENTED GROWTH COMPANIES LOST GROUND PHILIP MORRIS WAS OFF ONE TO FIFTY SIX AND FIVE EIGHTHS GENERAL MILLS FELL ONE AND ONE EIGHTH TO FIFTY EIGHT AND SEVEN EIGHTHS AND WALT DISNEY EASED ONE TO FORTY SIX AND FIVE EIGHTHS PRECIOUS METALS PRODUCERS ADVANCED WITH THE PRICE OF GOLD AMERICAN BARRICK GAINED ONE HALF TO THIRTY AND THREE QUARTERS HOMESTAKE MINING CLIMBED SEVEN EIGHTHS TO TWENTY FOUR AND SEVEN EIGHTHS AND ON THE AMERICAN STOCK EXCHANGE ECHO BAY MINES ROSE ONE HALF TO FOURTEEN AND SEVEN EIGHTHS GOLD FOR FEBRUARY DELIVERY GAINED TWO DOLLARS AND TEN CENTS TO THREE HUNDRED NINETY TWO DOLLARS AND TWENTY CENTS AN OUNCE IN NEW YORK IT IS UNDERSTANDABLE THAT SOME CAREER PROSECUTORS SEE PROSECUTION AS THE PRIME INSTRUMENT OF CRIME CONTROL QUOTE ATTORNEY GENERAL OF SOCIAL WORK QUOTE BY ALICIA MUNDY EDITORIAL PAGE JANUARY FIFTH BUT THE PERSON AT THE TOP NEEDS A LITTLE EXTRA VISION TO EXAMINE THE ENTIRE SYSTEM TO SEE WHETHER IT'S WORKING THE BEST IT CAN INDIVIDUAL PROSECUTORS MIGHT ENJOY THE LEVERAGE THAT MANDATORY MINIMUMS GIVE THEM TO MAKE SWEET DEALS WITH DRUG DEALERS WHO NAME THEIR SUPPLIERS BUT ATTORNEY GENERAL JANET RENO IS RIGHT TO BE CONCERNED THAT THE DEALERS AND SUPPLIERS OFTEN END UP GETTING LIGHTER PUNISHMENTS THAN SMALL TIME FIRST OFFENDERS WHO HAVE NO INFORMATION TO BARGAIN WITH AND THAT NONVIOLENT FIRST OFFENDERS ARE GETTING TOUGHER SENTENCES THAN MOST PEOPLE CONVICTED OF MURDER AND RAPE TWELVE YEARS OF SUCH NONSENSE HAS LEFT US WITH A FORTY FIVE PERCENT INCREASE IN VIOLENT CRIME AND A CONSTANTLY INCREASING PORTION OF NONVIOLENT OFFENDERS TAKING UP COSTLY PRISON SPACE WHILE THE MOST VICIOUS PREDATORS ARE PAROLED EARLY THREE OUT OF FIVE INMATES TODAY ARE DOING TIME FOR NONVIOLENT OFFENSES ONE OUT OF TEN IS LOCKED UP FOR DRUG POSSESSION ACCORDING TO JUSTICE DEPARTMENT FIGURES RESISTANCE TO CHANGE IS A HALLMARK OF CAREER BUREAUCRATS BUT HARDLY A REASON TO BLOCK GENUINE IMPROVEMENTS THAT MIGHT MAKE THE STREETS SAFER AND THE JUSTICE SYSTEM MORE RATIONAL PRESIDENT CLINTON DIDN'T MAKE A CAPITAL GAIN WHEN HE AND HIS PARTNERS TRANSFERRED SOME ARKANSAS LAND TO THEIR OWN WHITEWATER DEVELOPMENT COMPANY IN NINETEEN SEVENTY NINE ACCORDING TO A PERSON CLOSE TO THE CLINTONS WHO IS FAMILIAR WITH THE TRANSACTION THE COMMENT WAS MADE IN RESPONSE TO A TIME MAGAZINE ARTICLE THIS WEEK THE ARTICLE NOTES THAT THE LAND'S VALUE EIGHT HUNDRED EIGHTY TWO DOLLARS AN ACRE WHEN IT WAS FIRST PURCHASED BY MR. CLINTON AND HIS PARTNERS IN NINETEEN SEVENTY EIGHT WAS PEGGED BY THEM AT A HIGHER PRICE ONE THOUSAND EIGHTY SEVEN DOLLARS AN ACRE WHEN IT WAS TRANSFERRED TO WHITEWATER ABOUT A YEAR LATER THE WHITEWATER INVESTMENT IS UNDER FEDERAL SCRUTINY AND AT THE PRESIDENT'S REQUEST ATTORNEY GENERAL JANET RENO PLANS TO APPOINT A SPECIAL COUNSEL TO LOOK INTO IT AND RELATED MATTERS AMONG THE ISSUES INVOLVED ARE WHETHER MR. CLINTON EARNED ANY PROFIT ON THE INVESTMENT AND WHETHER HE AND HIS WIFE ACCURATELY REPORTED ANY PROFITS OR LOSSES TO THE INTERNAL REVENUE SERVICE AND OTHER AUTHORITIES THE PERSON CLOSE TO THE CLINTONS WHO DECLINED TO BE IDENTIFIED OTHERWISE ASSERTED VIGOROUSLY THAT THE ASSET TRANSFER IN NINETEEN SEVENTY NINE WASN'T A TAXABLE TRANSACTION FROM WHICH A CAPITAL GAIN OR LOSS COULD BE RECORDED FOUR PEOPLE MR. CLINTON HILLARY RODHAM CLINTON AND JAMES AND SUSAN MCDOUGAL BOUGHT THE LAND IN NINETEEN SEVENTY EIGHT AND THOSE SAME FOUR FORMED THE WHITEWATER PARTNERSHIP INTO WHICH THAT ASSET WAS PLACED IN NINETEEN SEVENTY NINE THAT KIND OF TRANSACTION IS BETTER CLASSIFIED AS A REORGANIZATION THE PERSON CLOSE TO THE CLINTONS SAID AND DOES NOT LEAD TO EITHER PROFIT OR LOSS REGARDLESS OF WHAT VALUE THE OWNERS PLACE ON IT NO MONEY ACTUALLY CHANGED HANDS AND THE PERSON ASSERTED THE INCREASED VALUATION OF THE LAND WAS REASONABLE BECAUSE IN THE YEAR OF OWNERSHIP WORK WAS DONE ON THE PROPERTY INCLUDING THE BUILDING OF A ROAD AND SURVEYING AND MARKETING OF THE LAND FOR SALE THE CLINTONS AND MCDOUGALS BOUGHT THE LAND FROM A COMPANY CALLED ONE HUNDRED ONE RIVER DEVELOPMENT INCORPORATED THE LAND WAS PART OF A THREE THOUSAND SIX HUNDRED ACRE TRACT FOR WHICH ONE HUNDRED ONE RIVER DEVELOPMENT HAD PAID ABOUT FOUR HUNDRED DOLLARS AN ACRE LESS THAN A MONTH EARLIER THE PERSON CLOSE TO THE CLINTONS SAID THIS PRICE DISCREPANCY WAS IRRELEVANT BECAUSE THE CLINTONS AND MCDOUGALS WERE BUYING CHOICE PIECES OF THE LARGER TRACT THE PERSON ALSO SAID ONE HUNDRED ONE RIVER DEVELOPMENT WAS NOT OWNED BY EITHER FAMILY THE WHITE HOUSE DECLINED TO COMMENT ON ANY SPECIFIC ALLEGATIONS RAISED BY THE TIME ARTICLE QUOTE THE WHITEWATER MATTER IS IN THE HANDS OF THE SPECIAL COUNSEL ONCE IT IS APPOINTED QUOTE SAID GEORGE STEPHANOPOULOS A SENIOR AIDE TO THE PRESIDENT BIO TECHNOLOGY GENERAL CORPORATION SAID IT RECEIVED PERMISSION FROM THE AUSTRALIAN GOVERNMENT TO MARKET ITS OXANDRIN FOR PEDIATRIC GROWTH DISORDERS THE MAKER OF GENETICALLY ENGINEERED HEALTH CARE PRODUCTS SAID AUSTRALIA IS THE FIRST COUNTRY TO APPROVE THE DRUG WHICH CARRIES THE GENERIC NAME OXANDROLONE FOR SUCH DISORDERS THE DRUG WILL BE MARKETED BY BIOPHARMACEUTICAL FIRM CSL LIMITED OF AUSTRALIA UNDER THE LONAVAR TRADEMARK BIO TECHNOLOGY SAID TERMS OF THE LICENCING AGREEMENT WEREN'T DISCLOSED WHEN A NEIGHBOR ASKED WASHINGTON STATE HOMEMAKER DOROTHY BENSON TO TEAR DOWN HER FENCE LAST SPRING SHE USED A HOME COMPUTER TO SKIM RELEVANT STATE LAWS THEN SHE KEPT THE FENCE WHERE IT WAS SHE MADE HER DECISION AFTER SLIPPING INTO A PUBLIC ELECTRONIC LAW LIBRARY AN INCREASINGLY POPULAR STOP ON THE WASHINGTON INFORMATION HIGHWAY FOR THE FIRST TIME IN THEIR LIVES NONLAWYERS LIKE MRS. BENSON HAVE THE RESOURCES TO HUNT DOWN STATE LAWS AND REGULATIONS THAT RELATE TO PROBLEMS AT WORK AND HOME SOME ATTORNEYS WARN THOUGH THAT PEOPLE CAN TRIP THEMSELVES UP BY PLAYING LAWYER THOUGH WASHINGTON APPEARS TO HAVE THE MOST COMPREHENSIVE BEST ORGANIZED COMPUTER LAW LIBRARY USERS OF OTHER ELECTRONIC BULLETIN BOARDS AROUND THE COUNTRY ARE INCREASINGLY EXCHANGING LEGAL INFORMATION INFORMALLY AND PEOPLE IN SOME TWENTY STATES HAVE INQUIRED ABOUT STARTING SYSTEMS SIMILAR TO THE ONE IN WASHINGTON SAID WILLIAM J. SORCINELLI A SPOKANE ATTORNEY WHO RUNS THE WASHINGTON BULLETIN BOARD CALLED LEGAL EASE THE LEGAL EASE LIBRARY CONTAINS THE COMPLETE TEXT OF STATE LAWS AND REGULATIONS AS WELL AS FILL IN THE BLANK LEGAL DOCUMENTS THAT ENTREPRENEURS HAVE TRANSFERRED INTO COMPUTER FILES CONSUMERS CAN GET THE INFORMATION OFTEN FREE BY LOGGING ONTO AN ELECTRONIC BULLETIN BOARD ONE OF THE LIBRARY'S TWO THOUSAND ODD USERS FOUND WASHINGTON LAWS THAT HELPED HIM QUASH A SCHOOL PROPOSAL TO DROP HIS CHILDREN FROM THE BUS ROUTE ANOTHER PERSON SHOWED THE LOCAL DOGCATCHERS THAT THEY WEREN'T ALLOWED TO PEEK OVER FENCES TO FIND UNLICENSED DOGS MRS. BENSON LEARNED THAT THE FENCE SURROUNDING HER SHEEP PASTURE PROBABLY COULD STAY BECAUSE IT HAD BEEN UP SO LONG THE DISPUTE SEEMED HEADED FOR A COURTROOM BUT THE NEIGHBOR BACKED DOWN QUOTE I'VE TOLD ALL MY FRIENDS THAT IF THEY NEED LEGAL INFORMATION THEN THEY CAN CALL US AND WE CAN GET IT OFF OF THIS BOARD QUOTE SHE SAID CHANCES ARE MRS. BENSON'S LOCAL COURTHOUSE HAS BOOKS WITH THE SAME LAWS THAT SHE DUG UP BY COMPUTER BUT SHE LIVES THIRTY MILES OUTSIDE OF SPOKANE AND IT WOULD HAVE TAKEN HOURS FOR A NONLAWYER LIKE HERSELF TO FIND THE INFORMATION SHE GOT IN THIRTY MINUTES BY TYPING THE RIGHT SEARCH WORDS I WOULD NEVER HAVE GONE SOMEWHERE ELSE TO GET THE INFORMATION MOST LIKELY SAID MRS. BENSON OF ELK WASHINGTON I WOULD HAVE SAID IT'S OUT OF MY LEAGUE THIS GAVE ME THE PRESUMPTION THAT I HAD SOME RIGHTS BESIDES LOOKING UP LAWS MOST FREQUENTLY THOSE COVERING FAMILY MATTERS AND TRAFFIC COURT CONSUMERS ALSO SWAP ADVICE SIMILAR LEGAL CHAT LINES EXIST ON NUMEROUS BULLETIN BOARDS AND COMPUTER NETWORKS SUCH AS AMERICA ONLINE INCORPORATED OF VIENNA VIRGINIA THESE LEGAL EXCHANGES ARE PARTICULARLY POPULAR AMONG LAW STUDENTS AND EVEN AN EXPERT WITNESS STEPHEN HOLLANDER USED SUCH A NETWORK FOR LEGAL ADVICE ABOUT A YEAR AGO WHEN HE WAS INVOLVED WITH A CLASS ACTION LAWSUIT IN ONTARIO THE CANADIAN PROVINCE DIDN'T ALLOW CLASS ACTIONS UNTIL NINETEEN NINETY TWO WE HAD THE LEGISLATION IN PLACE BUT NOBODY REALLY KNEW WHAT TO DO SAID MR. HOLLANDER OF OTTAWA HOW DO WE GO ABOUT GETTING IN CONTACT WITH CLASS MEMBERS A WHOLE RAFT OF PRACTICAL QUESTIONS LIKE THAT QUOTE HE POSTED A QUERY ON A LEGAL CHAT SECTION OF COLUMBUS OHIO'S COMPUSERVE INCORPORATED A UNIT OF H. AND R. BLOCK INCORPORATED AND THE NEXT DAY HAD THE NAME OF A CLASS ACTION EXPERT ATTORNEYS WHO USE SIMILAR NETWORKS THEMSELVES GENERALLY SAY THEY SEE NOTHING WRONG WITH MAKING STATE AND LOCAL LAWS AVAILABLE ELECTRONICALLY BUT THEY WARN THAT CONSUMERS MAY NOT BE GETTING THE FULL PICTURE BY JUST READING A LAW MRS. BENSON FOR INSTANCE HAD FOCUSED ON A STATE LAW THAT SHE READ TO MEAN THAT SHE COULD KEEP THE FENCE IN PLACE BECAUSE IT HAD BEEN UP LONGER THAN SEVEN YEARS WHAT SHE DIDN'T KNOW IS THAT COURTS GENERALLY REQUIRE THAT TO HAVE A CHANCE OF BEING PROTECTED A FENCE MUST BE STANDING FOR TEN YEARS IN SUCH DISPUTES SAID ELLEN CONEDERA DIAL CHAIRWOMAN ELECT OF THE WASHINGTON STATE BAR ASSOCIATION'S REAL PROPERTY SECTION THAT WOULDN'T HAVE MADE A DIFFERENCE IN MRS. BENSON'S CASE SINCE THE FENCE HAD BEEN UP FIFTEEN YEARS BUT IT IS SOMETHING SHE SHOULD HAVE KNOWN BEFORE GOING TO COURT JUST LOOKING UP THE STATUTE CAN REALLY LEAD ONE TO THE WRONG CONCLUSIONS SAID MS. DIAL WITH JUST SUCH DANGERS IN MIND SPOKANE COMPUTER CONSULTANT MILES E. CRAWFORD USED LEGAL EASE MAINLY AS A TOOL TO SHAVE ATTORNEY FEES WHEN HE SET UP HIS CORPORATION HE USED INFORMATION FROM THE BULLETIN BOARD INCLUDING DO IT YOURSELF FORMS TO DRAW UP INCORPORATION PAPERS HIMSELF THEN HE ASKED AN ATTORNEY TO DOUBLE CHECK THE WORK HE WASN'T EXACTLY PLEASED MR. CRAWFORD SAID LAUGHING I THINK HE WAS EXPECTING TO MAKE MORE MONEY CALIFORNIA'S EARTHQUAKE TEMPORARILY KNOCKED OUT PHONE LINES AND SOME POWER BUT ELECTRONIC MESSAGES ABOUT THE DISASTER WERE FLYING THICK AND FAST ONLY MINUTES AFTER THE SHAKING STOPPED SOUTHERN CALIFORNIA AWASH IN COMPUTER USERS WHO COMMONLY TALK TO EACH OTHER THROUGH THE INTERNET COMPUTER NETWORK WAS SOON TIED TOGETHER WITH E. MAIL CONVERSATIONS RUMORS AND REASSURANCES ON THE PRODIGY SERVICES COMPUTER BULLETIN BOARD DOZENS OF USERS FROM AROUND THE COUNTRY RUSHED IN WITH OFFERS TO CONTACT RELATIVES OF LOS ANGELES RESIDENTS PRODIGY SAID FIVE HUNDRED MESSAGES WERE POSTED WITHIN THE FIRST FEW HOURS LESS THAN AN HOUR AFTER THE QUAKE PEOPLE WERE BUZZING ON THE QUOTE EARTHQUAKE QUOTE CHANNEL ON INTERNET TRADING NEWS TIDBITS FROM TELEVISION AND RADIO BROADCASTS AND A PARALLEL QUAKECHAT CHANNEL EMERGED FOR PEOPLE TO DISCUSS THE EVENTS LEAVING THE OTHER CHANNEL OPEN FOR NEWS INTERNET THE SUCCESSOR OF A NETWORK BUILT BY THE PENTAGON AND DESIGNED TO WITHSTAND DISASTER IS REMARKABLY ROBUST SAID VINTON G. CERF ONE OF THE ORIGINAL DESIGNERS OF INTERNET DESPITE THE CASUALTIES AND PROPERTY DAMAGE THE EARTHQUAKE THAT STRUCK LOS ANGELES YESTERDAY MORNING WASN'T THE QUOTE BIG ONE QUOTE THAT CALIFORNIANS HAVE BEEN EXPECTING FOR SEVERAL YEARS GEOPHYSICISTS SAID THE NINETEEN NINETY TWO SOUTHERN CALIFORNIA QUAKE WAS THIRTY TIMES MORE POWERFUL THEY ALSO SAID THEY COULDN'T IMMEDIATELY DETERMINE IF YESTERDAY'S QUAKE WAS DUE TO SLIPPAGE OF A KNOWN OR A PREVIOUSLY UNDISCOVERED GEOLOGICAL FAULT THAT WON'T BE DETERMINED UNTIL SEISMOLOGICAL DATA FROM SEVERAL STATIONS HAVE BEEN ANALYZED PRELIMINARY READINGS OF SEISMOGRAPHS SHOWED THAT YESTERDAY'S EARTHQUAKE CENTERED UNDER THE LOS ANGELES COMMUNITY OF NORTHRIDGE REGISTERED ABOUT SIX POINT SIX ON THE RICHTER SCALE FOR MEASURING THE ENERGY RELEASED BY EARTHQUAKES IT WAS FOLLOWED BY MORE THAN A HALF DOZEN AFTERSHOCKS REGISTERING BETWEEN THREE POINT OH AND FIVE POINT OH ON THE RICHTER SCALE THERE'LL PROBABLY BE A LOT OF AFTERSHOCKS REGISTERING FOUR POINT OH TO FIVE POINT OH ON THE SCALE FOR THE NEXT FOUR TO FIVE DAYS SAID GEOPHYSICIST STUART KOYANAGI OF THE U. S. GEOLOGICAL SURVEY'S EARTHQUAKE INFORMATION CENTER IN GOLDEN COLORADO BY COMPARISON WITH YESTERDAY'S QUAKE A MAJOR QUAKE IS ONE THAT REGISTERS SEVEN POINT OH OR HIGHER ON THE RICHTER SCALE THE JUNE NINETEEN NINETY TWO EARTHQUAKE CENTERED AT THE SOUTHERN CALIFORNIA TOWN OF LANDERS NEAR THE MOJAVE DESERT KILLED ONE PERSON THOUGH IT HAD A RICHTER READING OF SEVEN POINT FIVE THE OCTOBER NINETEEN EIGHTY NINE QUAKE IN SAN FRANCISCO WHICH KILLED SIXTY THREE PEOPLE HIT SEVEN POINT ONE ON THE SCALE THE AMOUNT OF DAMAGE AND THE LOSS OF LIFE FROM A QUAKE DEPENDS ON WHERE IT OCCURS AS MUCH AS ON THE AMOUNT OF ENERGY RELEASED MR. KOYANAGI SAID THE NORTHRIDGE QUAKE HIT IN THE HEAVILY POPULATED SAN FERNANDO VALLEY THAT STRETCHES FOR FIFTY MILES NORTH OF DOWNTOWN LOS ANGELES ONLY EARTHQUAKES REGISTERING EIGHT POINT OH OR HIGHER ARE CLASSED AS GREAT QUAKES EXAMPLES BEING THE NINETEEN SIXTY FOUR ALASKA EARTHQUAKE EIGHT POINT FOUR AND THE NINETEEN OH SIX SAN FRANCISCO QUAKE ESTIMATED AT EIGHT POINT THREE ON THE RICHTER SCALE WE'VE LOOKED AT SOME OF THE SEISMOLOGICAL DATA HERE IN PENNSYLVANIA AND IT LOOKS LIKE A TYPICAL QUAKE FOR SOUTHERN CALIFORNIA SAID GEOPHYSICIST CHARLES A. LANGSTON AT PENNSYLVANIA STATE UNIVERSITY IN UNIVERSITY PARK EARTHQUAKE RESEARCHERS HADN'T PREDICTED THE NORTHRIDGE QUAKE QUOTE AT LEAST NOT THAT WE KNOW OF QUOTE SAID MR. KOYANAGI OF THE GEOLOGICAL SURVEY NOR WAS THERE ANY WARNING OF AN IMPENDING QUAKE ALTHOUGH MR. KOYANAGI NOTED THAT LAST WEEK THERE WERE SEVERAL SMALL QUAKES OFF THE COAST OF CALIFORNIA NEAR SANTA MONICA THAT WERE SUSPICIOUS BUT THEY WEREN'T QUITE IN THE SAME AREA AS YESTERDAY'S QUAKE NEVERTHELESS IT WASN'T UNEXPECTED IN THE SENSE THAT SOUTHERN CALIFORNIA HAS BEEN HAVING A LOT OF QUAKES IN THE LAST FEW YEARS SAID PENN STATE'S DOCTOR LANGSTON THE REPEATED SHAKING OF SOUTHERN CALIFORNIA SEEMS TO HAVE SOMETHING TO DO WITH THE MOUNTAIN BUILDING THAT'S GOING ON THERE HE SAID THE SAN FERNANDO VALLEY IS CREATED BY THE SANTA MONICA AND SAN GABRIEL MOUNTAIN RANGES THAT HAVE BEEN INCHING TOWARD EACH OTHER ONE QUESTION GEOPHYSICISTS PROBABLY WILL INVESTIGATE IN COMING MONTHS IS WHETHER THE NORTHRIDGE QUAKE HAS ANY RELATION TO THE LANDERS QUAKE IN JUNE NINETEEN NINETY TWO THE LANDERS QUAKE WAS EXTREMELY UNUSUAL BECAUSE IT SEEMED TO TRIGGER EARTHQUAKES ACROSS THE WESTERN U. S. FOR WEEKS AFTERWARDS INCLUDING QUAKES AS FAR AWAY AS YELLOWSTONE NATIONAL PARK AND CASCADE IDAHO AS THOUGH IT HAD SHAKEN UP THE SUBTERRANEAN GEOLOGY OF THE WHOLE EARTHQUAKE PRONE WEST JANUARY SEVENTEENTH NINETEEN NINETY FOUR NORTHRIDGE AN ESTIMATED SIX POINT SIX MAGNITUDE QUAKE CENTERED NEAR THIS SAN FERNANDO VALLEY TOWN AT LEAST TWO DOZEN DEAD JUNE TWENTY EIGHTH NINETEEN NINETY TWO LANDERS A SEVEN POINT FIVE EARTHQUAKE IN THIS TOWN NEAR SAN BERNARDINO AND A SIX POINT SIX AFTERSHOCK AT BIG BEAR LAKE KILL ONE TODDLER OCTOBER SEVENTEENTH NINETEEN EIGHTY NINE LOMA PRIETA SANTA CRUZ MOUNTAINS SEVEN POINT ONE QUAKE CAUSES WIDESPREAD DAMAGE IN THE SAN FRANCISCO BAY AREA SIXTY THREE PEOPLE DIE OCTOBER FIRST NINETEEN EIGHTY SEVEN WHITTIER A FIVE POINT NINE QUAKE AND A FIVE POINT THREE AFTERSHOCK KILL EIGHT PEOPLE JANUARY TWENTY FOURTH NINETEEN EIGHTY LIVERMORE A FIVE POINT EIGHT QUAKE STRIKES THE AREA EAST OF SAN FRANCISCO AND DAMAGES A NUCLEAR WEAPONS LABORATORY FEBRUARY NINTH NINETEEN SEVENTY ONE SYLMAR A SIX POINT FIVE QUAKE IN THE SAN FERNANDO VALLEY KILLS SIXTY FIVE PEOPLE JULY TWENTY FIRST NINETEEN FIFTY TWO BAKERSFIELD A SEVEN POINT SEVEN QUAKE IN AN AREA FIFTY MILES NORTH OF LOS ANGELES KILLS TWELVE PEOPLE MARCH TENTH NINETEEN THIRTY THREE LONG BEACH A SIX POINT THREE QUAKE KILLS ONE HUNDRED FIFTEEN PEOPLE APRIL EIGHTEENTH TO NINETEEN NINETEEN OH SIX SAN FRANCISCO EARTHQUAKE AND FIRES LEVEL THE CITY KILLING AT LEAST SEVEN HUNDRED PEOPLE SCIENTISTS ESTIMATE THAT THE QUAKE WOULD HAVE REGISTERED EIGHT POINT THREE ON THE RICHTER SCALE QUALCOMM INCORPORATED SAN DIEGO REPORTED FISCAL FIRST QUARTER NET INCOME OF FIVE MILLION DOLLARS OR EIGHTEEN CENTS A SHARE REVERSING A YEAR EARLIER LOSS BUT DISAPPOINTING WALL STREET IN THE YEAR EARLIER PERIOD THE MAKER OF WIRELESS COMMUNICATIONS EQUIPMENT POSTED A NET LOSS OF ONE POINT SIX MILLION DOLLARS OR EIGHT CENTS A SHARE HOWEVER THE COMPANY SAW DEMAND FOR ITS PRODUCTS RISE SHARPLY AS REVENUE CLIMBED SEVENTY NINE PERCENT TO FIFTY THREE POINT SEVEN MILLION DOLLARS IN THE LATEST PERIOD ENDED DECEMBER TWENTY SIXTH NINETEEN NINETY THREE FROM THIRTY MILLION DOLLARS IN THE NINETEEN NINETY TWO FOURTH QUARTER THE COMPANY HAD BEEN EXPECTED TO EARN TWENTY FIVE CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH THE LOWER PER SHARE RESULTS LED TO A SELL OFF OF THE STOCK ON THE NASDAQ STOCK MARKET QUALCOMM'S SHARES CLOSED YESTERDAY AT FIFTY ONE DOLLARS DOWN THREE POINT ONE TWO FIVE DOLLARS OR FIVE POINT EIGHT PERCENT IN THE LATEST HIGH LEVEL DEPARTURE FROM BELEAGUERED APPLE COMPUTER INCORPORATED THE COMPANY SAID AN EXECUTIVE INSTRUMENTAL IN THE SUCCESS OF APPLE'S NEW LINE OF PORTABLE COMPUTERS IS QUITTING FOR ANOTHER JOB AT MOTOROLA INCORPORATED THE CUPERTINO CALIFORNIA COMPUTER MAKER SAID RANDY BATTAT VICE PRESIDENT OF APPLE'S MACINTOSH DESKTOP AND POWERBOOK DIVISION IS LEAVING JANUARY THIRTY FIRST TO BECOME VICE PRESIDENT AND GENERAL MANAGER OF MOTOROLA'S WIRELESS DATA GROUP WHICH IS DEVELOPING PRODUCTS BASED ON THE EMERGING TECHNOLOGY FOR WIRELESS COMMUNICATIONS MR. BATTAT SAID QUOTE IT WAS A VERY TOUGH DECISION QUOTE TO SWITCH TO MOTOROLA BECAUSE HE HAD WORKED AT APPLE IN VARIOUS POSITIONS SINCE NINETEEN EIGHTY ONE AN APPLE SPOKESMAN SAID MR. BATTAT LEFT BECAUSE HE FOUND A JOB INCREDIBLY ATTRACTIVE UNTIL A SUCCESSOR IS APPOINTED APPLE SAID IAN DIERY EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S PERSONAL COMPUTER DIVISION WOULD ASSUME MR. BATTAT'S RESPONSIBILITIES THE DEPARTURE OF MR. BATTAT THIRTY FOUR YEARS OLD IS A BLOW TO APPLE AS HE IS WIDELY LAUDED FOR HAVING HELPED BUILD THE COMPANY'S POWERBOOK PORTABLE COMPUTER INTO A ONE BILLION DOLLAR A YEAR BUSINESS MR. BATTAT WAS ALSO A PART OF APPLE'S INITIAL HUGE SUCCESS IN INTRODUCING THE MACINTOSH COMPUTER I ALWAYS FELT HE WAS A REAL VISIONARY SAID TIM BAJARIN PRESIDENT OF CREATIVE STRATEGIES A SAN JOSE CALIFORNIA INDUSTRY CONSULTING FIRM IT'S A REAL LOSS FOR APPLE BUT A REAL WIN FOR MOTOROLA APPLE LATELY HAS FALLEN ON SOME HARD TIMES BECAUSE ITS MARKET SHARE GROWTH HAS LAGGED BEHIND BIG COMPETITORS LIKE INTERNATIONAL BUSINESS MACHINES CORPORATION AND COMPAQ COMPUTER CORPORATION AND IT HAS STUMBLED IN INTRODUCING NEW PRODUCTS LIKE THE HAND HELD NEWTON MESSAGEPAD APPLE HAS BEEN FRANTICALLY CHOPPING MACINTOSH PRICES TO BOOST SALES AND IN MARCH WILL LAUNCH A NEW LINE OF MACINTOSHES BASED ON A POWERFUL NEW MICROPROCESSOR CALLED POWERPC OTHER RECENT DEPARTURES FROM APPLE INCLUDE MICHAEL PUETTE WHO SOME SAID WAS FORCED OUT OF HIS JOB AS PRESIDENT OF APPLE'S U. S. MARKETING ARM ALBERT A. EISENSTAT APPLE'S FORMER EXECUTIVE VICE PRESIDENT AND AN INSIDE DIRECTOR SINCE NINETEEN EIGHTY FIVE WHO CLAIMS HE WAS FORCED OUT LAST YEAR BY MICHAEL SPINDLER THE NEW CHIEF EXECUTIVE OFFICER AND JOHN SCULLEY THE FORMER C. E. O. WHO MR. EISENSTAT HAS CONTENDED WAS FORCED OUT BY THE BOARD LAST YEAR TOKYO SHARES DROPPED ONE POINT THREE PERCENT MONDAY AS JAPANESE CORPORATIONS AND FINANCIAL INSTITUTIONS UNLOADED POSITIONS TO TAKE PROFITS AFTER THE MARKET'S RECENT RUN UP LONDON PRICES GAINED LED BY SMALLER ISSUES AS INVESTORS FOCUSED ON THE ECONOMIC RECOVERY UNDER WAY IN BRITAIN SYDNEY STOCKS JUMPED TO A SIX YEAR HIGH WHILE MANY ASIAN BOURSES WERE HIT BY PROFIT TAKING WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED THIRTEEN POINT OH THREE DOWN ZERO POINT TWO ONE REFLECTING LOWER ASIA SLASH PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS PRECIOUS METALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED SIXTY TWO POINT NINE SEVEN UP THREE POINT ONE ONE OR ONE POINT NINE FIVE PERCENT WITH GOLD MINES OF KALGOORLIE OF AUSTRALIA POSTING A TWELVE PERCENT GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT TWO HUNDRED TWENTY SEVEN POINT TWO FIVE DOWN TWENTY ONE POINT SIX EIGHT OR EIGHT POINT SEVEN ONE PERCENT WITH HIGHLANDS AND LOWLANDS OF MALAYSIA SLIDING TWELVE PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH JUMPED THREE HUNDRED NINETY SIX POINT FOUR FOUR POINTS FRIDAY RETREATED TWO HUNDRED FORTY EIGHT POINT THREE THREE TO EIGHTEEN THOUSAND SEVEN HUNDRED TWENTY FIVE POINT THREE SEVEN IN TRADING TUESDAY THE NIKKEI ROSE THIRTY SEVEN POINT FOUR ONE POINTS TO CLOSE THE MORNING SESSION AT EIGHTEEN THOUSAND SEVEN HUNDRED SIXTY TWO POINT SEVEN EIGHT MONDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT A THIN TWO HUNDRED EIGHTY MILLION SHARES COMPARED WITH FOUR HUNDRED SIXTY EIGHT POINT SEVEN MILLION SHARES IN THE PREVIOUS SESSION LOSERS OVERWHELMED GAINERS SEVEN HUNDRED ONE TO THREE HUNDRED THIRTY THREE THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH CLIMBED TWENTY TWO POINT ONE FIVE POINTS FRIDAY FELL NINE POINT SEVEN ONE TO ONE THOUSAND FIVE HUNDRED FIFTEEN POINT NINE ONE COMING AFTER TWO WEEKS OF NEARLY UNINTERRUPTED GAINS TOKYO'S DECLINE WAS VIEWED AS A RELATIVELY POSITIVE CORRECTION OVERSEAS INVESTORS AGAIN WERE NET BUYERS THOUGH THEIR PURCHASING SLOWED FROM LAST WEEK WHEN THEY WERE THE DRIVING FORCE BEHIND THE MARKET'S EIGHT HUNDRED POINT RALLY AFTER A SHARP ARBITRAGE RELATED PLUNGE AT MONDAY'S OPENING SHARES STEADIED WITH A BRIEF BURST OF AFTERNOON BUYING PUSHING THEM HIGHER BEFORE DOMESTIC SALES KNOCKED THEM BACK AT THE CLOSE BUT PARTICIPANTS SAID SENTIMENT REMAINED POSITIVE ABOUT PROSPECTS FOR SWIFT PARLIAMENTARY PASSAGE OF JAPANESE POLITICAL REFORM LEGISLATION A PRECURSOR TO MEASURES TO BREATHE LIFE INTO THE STAGGERING ECONOMY IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX ROSE SEVEN POINT TWO POINTS TO THREE THOUSAND FOUR HUNDRED SEVEN POINT EIGHT THOUGH THIS WAS DOWN FROM A TWENTY POINT FIVE POINT INTRADAY GAIN THE F. T. THIRTY STOCK INDEX ROSE THREE POINT FOUR POINTS TO TWENTY SIX FIFTEEN FIVE L. VOLUME WAS EIGHT HUNDRED EIGHT POINT THREE MILLION SHARES COMPARED WITH ONE POINT OH TWO BILLION SHARES IN THE PREVIOUS SESSION THE TRADING TREND WAS LED BY THE FUTURES MARKET WHERE A LATE RETREAT PUSHED F. T. ONE HUNDRED PRICES DOWN AND ATTENTION SHIFTED TO F. T. S. E. TWO HUNDRED FIFTY STOCKS WHICH HAVE SMALLER CAPITALIZATIONS THAN THE ONE HUNDRED BIG ISSUES THE TWO HUNDRED FIFTY SHARE INDEX CLOCKED A THIRTY THREE POINT ONE POINT RISE TO THREE THOUSAND NINE HUNDRED FORTY EIGHT POINT EIGHT ITS SECOND CONSECUTIVE RECORD HIGH THE TOP STOCKS ARE ALREADY HIGHLY VALUED AND INVESTORS AGAIN MOVED TO THE SMALL CAP ISSUES WHICH WERE HIT HARDEST BY RECESSION AND ARE BELIEVED TO BE POSITIONED TO BENEFIT THE MOST FROM ECONOMIC RECOVERY FOR THE SMALL STOCKS LOW INTEREST RATES HAVE SLASHED BORROWING COSTS ALLOWING THEM TO EXPAND TO MEET GROWING DEMAND AND TO POST SOLID EARNINGS INDEED THE BRITISH GOVERNMENT YESTERDAY REPORTED THAT INFLATION REMAINED SUBDUED WHILE GROWTH CONTINUED IN FRANKFURT PRICES FELL THE D. A. X. THIRTY STOCK INDEX DECLINED FOUR POINT FOUR FOUR POINTS TO TWO THOUSAND ONE HUNDRED THIRTY SEVEN POINT THREE EIGHT AS BLUE CHIPS WERE STILL AILING FROM DISAPPOINTING CORPORATE NEWS LAST WEEK BUCKING THE TREND METALLGESELLSCHAFT SOARED TWENTY SEVEN MARKS OR THIRTEEN PERCENT TO TWO HUNDRED FORTY ONE MARKS ONE HUNDRED THIRTY SEVEN DOLLARS AND SEVENTY SIX CENTS AFTER THE METAL AND ENGINEERING COMPANY WAS RESCUED FROM A BANKRUPTCY FILING WHEN MAJOR CREDITOR BANKS OVER THE WEEKEND AGREED TO A PACKAGE OF THREE POINT FOUR BILLION MARKS ONE POINT NINE FOUR BILLION DOLLARS IN EQUITY AND CREDIT IN PARIS AFTER CHALKING UP MODERATE EARLY GAINS EQUITIES SHED ONE POINT TWO PERCENT DRAGGED LOWER BY HEAVY SELLING IN INDEX FUTURES SALES FROM COMPUTER GUIDED PROGRAMS KICKED IN LATE IN THE SESSION AND HEAVY SELLING ON THE FUTURES SIDE PUSHED BLUE CHIPS SHARPLY LOWER TRADERS SAID A U. S. INVESTMENT BANK WAS A MAJOR SELLER IN INDEX FUTURES IN AMSTERDAM PRICES ROSE THOUGH WITH A WEAK WALL STREET OPENING SOME GLOBALLY TRADED DUTCH MULTINATIONALS COULDN'T HOLD THEIR EARLY GAINS AND FINISHED WITH DECLINES IN GENERAL THOUGH THE MARKET WAS UNDERPINNED BY THE LONDON BOURSE'S RISE THE STEADY DOLLAR AND NEWS SUNDAY THAT THE DUTCH GOVERNMENT PLANNED TO USE A TAX REVENUE WINDFALL TO REDUCE PERSONAL INCOME TAX RATES THIS YEAR IN MILAN SHARES CLIMBED ONE POINT NINE PERCENT FOLLOWING WEEKEND DECISIONS TO DISBAND ITALY'S PARLIAMENT AND HOLD ELECTIONS MARCH TWENTY SEVENTH HELPING TO CLEAR THE SLATE IN THE COUNTRY'S SCANDAL TAINTED POLITICAL ARENA THE MOVE ALLOWED THE BOURSE TO TURN TO THE ECONOMY WHICH IS EXPECTED TO MANAGE A SLOW RECOVERY THIS YEAR AS INTEREST RATES EASE IN STOCKHOLM THE MARKET SURGED BROADLY TO A RECORD FOR THE SECOND SESSION IN A ROW IN EXTREMELY HEAVY TRADING THE CLIMB WAS PACED BY FORESTRY ISSUES WHICH ARE TO RAISE PRICES ON SEVERAL PRODUCTS THIS SPRING AND BLUE CHIP INDUSTRIALS WHICH GAINED FROM ROSY PROFIT FORECASTS IN ZURICH PRICES FIRMED SOLIDLY LED BY CYCLICAL BANKING AND SOME CHEMICAL ISSUES STILL THE FINISH WAS OFF THE DAY'S HIGHS AFTER FRANKFURT'S WEAK SHOWING PROMPTED SCATTERED PROFIT TAKING ON THE SWISS BOURSE AND THE INSURANCE SECTOR WAS HURT IN THE FINAL HOUR ON NEWS OF AN EARTHQUAKE IN LOS ANGELES IN SYDNEY SHARE PRICES SURGED ONE POINT FOUR PERCENT TO THEIR HIGHEST LEVELS SINCE THE GLOBAL STOCK MARKET CRASH IN OCTOBER NINETEEN EIGHTY SEVEN SUPPORTED BY A RISE IN THE PRICE OF GOLD AND BUYING BY OFFSHORE INVESTORS IN HONG KONG SHARES ENDED WITH MILD GAINS IN A THEMELESS SESSION MARKED BY CHOPPY DEALINGS AFTER SPECTACULAR DROPS LAST WEEK ENDING IN A BIG GAIN FRIDAY IN SINGAPORE PRICES RECOVERED FROM THE DAY'S LOWS BUT STILL FINISHED WITH A ONE POINT ONE PERCENT LOSS IN MODERATELY THIN DEALINGS SELLING WAS REINFORCED BY LIMITED BUYING AS BROKERAGE HOUSES CONTINUED TO PUT A CAP ON TRADES AND MANY INSTITUTIONAL INVESTORS STAYED SIDELINED BECAUSE OF MARKET VOLATILITY IN KUALA LUMPUR STOCKS SLUMPED TWO POINT SIX PERCENT IN BRISK DEALINGS AS EDGY INVESTORS IN A BID TO REDUCE THEIR EXPOSURE TOOK PROFITS AFTER FRIDAY'S SOARING REBOUND IN TAIPEI STOCKS SLIPPED IN ACTIVE TURNOVER AS INVESTORS RAKED IN PROFITS FOLLOWING THE FIVE POINT SIX PERCENT SURGE IN THE PREVIOUS SESSION IN MANILA EQUITIES ALSO EASED ON PROFITTAKING IN SEOUL SHARES FELL AFTER SWINGING WILDLY IN REACTION TO CORPORATE NEWS IN BANGKOK STOCKS SANK TWO POINT EIGHT PERCENT IN MODERATELY ACTIVE TRADING AFTER REBOUNDING FRIDAY PARTICIPANTS WERE NERVOUS AFTER STOCK INDEXES IN THE REGION FELL EARLIER IN THE DAY AMONG OTHER CORPORATE DEVELOPMENTS IN PARIS EUROTUNNEL LOST TWO POINT NINE FRENCH FRANCS OR FIVE POINT FOUR PERCENT TO FIFTY POINT SEVEN FRANCS EIGHT DOLLARS AND FIFTY FOUR CENTS AFTER TRANS MANCHE LINK THE FRANCO BRITISH CONSORTIUM OF CONTRACTORS FOR THE TUNNEL UNDER THE ENGLISH CHANNEL REOPENED THE UNRESOLVED QUESTION OF WHO WILL ABSORB BILLIONS OF FRANCS IN COST OVERRUNS ON THE PROJECT AGREEMENT MUST BE REACHED IN FIVE MONTHS BEFORE AN ARBITRATION PANEL TAKES OVER 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END HEWLETT PACKARD COMPANY AS PART OF ITS STRATEGY TO PUSH INTO LOW END COMPUTER MARKETS PLANS TO UNVEIL TODAY A LOWER COST WORKSTATION THE COMPUTER CALLED THE H. P. NINE THOUSAND MODEL SEVEN HUNDRED TWELVE IS THE FIRST OF A NEW WORKSTATION LINE CODE NAMED GECKO THAT IS BASED ON A NEW H. P. MULTIMEDIA CHIP AND THE H. P. VERSION OF THE UNIX OPERATING SYSTEM IT CAN DISPLAY FULL MOTION VIDEO WHICH COULD ALLOW BUSINESS CUSTOMERS TO DO VIDEO CONFERENCING AT THEIR DESKS LIST PRICES ON THE MACHINE START AT THREE THOUSAND NINE HUNDRED NINETY FIVE DOLLARS ONLY SLIGHTLY MORE THAN LESS POWERFUL PERSONAL COMPUTERS BASED ON INTEL CORPORATION'S NEW PENTIUM CHIP H. P. BASED IN PALO ALTO CALIFORNIA AND OTHER MAKERS OF WORKSTATIONS POWERFUL COMPUTERS WITH FANCY GRAPHICS FAVORED BY ENGINEERS HAVE BEEN BATTLING ONE ANOTHER TO WOO CUSTOMERS IN THE LOW END OF THE MARKET USUALLY THE TURF OF NUMBER ONE WORKSTATION MAKER SUN MICROSYSTEMS INCORPORATED THEY HAVE ALSO BEEN LOWERING PRICES TO BE ABLE TO COMPETE BETTER WITH THE MOST POWERFUL P. C.S INSURANCE COMPANIES BRACED FOR AN ONSLAUGHT OF CLAIMS FROM EARTHQUAKE RAVAGED LOS ANGELES THAT SOME EXPERTS SAID COULD REACH ONE BILLION DOLLARS BUT THE INDUSTRY IS EXPECTED TO ESCAPE SERIOUS FINANCIAL DAMAGE BECAUSE OF THE NATURE OF EARTHQUAKE COVERAGE EARLY ESTIMATES WERE THAT LOSSES COULD CLIMB ABOVE THE NINE HUNDRED SIXTY MILLION DOLLARS IN CLAIMS INSURERS HAD FROM THE NINETEEN EIGHTY NINE SAN FRANCISCO EARTHQUAKE BECAUSE THE AFFECTED AREA IS MORE DENSELY POPULATED BUT WHATEVER THE TOTAL IN LOS ANGELES IT WILL CERTAINLY PALE BESIDE THE SIXTEEN POINT FIVE BILLION DOLLARS IN CLAIMS PAID OUT ON HURRICANE ANDREW EARTHQUAKE INSURANCE IN PLACES LIKE SOUTHERN CALIFORNIA IS SO EXPENSIVE THAT INDUSTRY EXPERTS ESTIMATE THAT ONLY ABOUT A QUARTER OF CALIFORNIA HOMEOWNERS HAVE COVERAGE AND FOR THOSE WHO DO MANY POLICIES CARRY HIGH DEDUCTIBLES THAT HELP MITIGATE THE INSURANCE INDUSTRY'S LOSSES INSURED HOMEOWNERS WHO LACK EARTHQUAKE COVERAGE ARE STILL COVERED FROM FIRES AND LOOTING THAT RESULT FROM THE QUAKE MANY BIG COMPANIES IN THE AREA CARRY EARTHQUAKE INSURANCE WHICH OFTEN INCLUDES COVERAGE FOR LOST PROFITS IF OPERATIONS ARE FORCED TO SHUT DOWN SMALL COMPANIES HOWEVER TEND TO AVOID SUCH COVERAGE BECAUSE OF THE COST INSURANCE EXPERTS ALSO EXPECT FEWER THAN USUAL CLAIMS FROM BUSINESSES BECAUSE MANY COMPANIES WERE CLOSED FOR THE MARTIN LUTHER KING JUNIOR HOLIDAY QUOTE BECAUSE THE INDUSTRY HAS INSULATED ITSELF IT WOULD HAVE TO BE THE SORT OF QUAKE THAT TOPPLED BUILDINGS BEFORE THERE WOULD BE MAJOR LOSSES QUOTE SAID MICHAEL SMITH A STOCK ANALYST WITH LEHMAN BROTHERS I DON'T THINK IT WILL BE A MAJOR LOSS EVENT FOR THE INDUSTRY THE SAN FRANCISCO EARTHQUAKE IN NINETEEN EIGHTY NINE THE COSTLIEST EARTHQUAKE IN U. S. HISTORY CAUSED SEVEN BILLION DOLLARS IN TOTAL DAMAGES BUT INSURERS PAID ONLY A FRACTION OF THAT THIS EARTHQUAKE WILL BE MATERIAL FOR A FEW COMPANIES BUT IT WON'T BE SOLVENCY THREATENING SAID A. M. BEST COMPANY SENIOR VICE PRESIDENT JOHN SNYDER SPECIFIC INSURERS SAY IT WILL BE DAYS BEFORE THEY CAN ESTIMATE THEIR LOSSES I HAVEN'T A CLUE AT THIS MOMENT SAID CHUBB CORPORATION VICE PRESIDENT JAY MADIGAN IT'S MUCH TOO EARLY WHATEVER THE TOTAL THE EARTHQUAKE IS THE LATEST IN A SERIES OF EVENTS IN LOS ANGELES TO HIT THE INSURANCE INDUSTRY IN OCTOBER FIRES THAT WHIPPED THROUGH THE CITY CAUSED NINE HUNDRED FIFTY MILLION DOLLARS IN INSURED LOSSES THE RIOTS TWO YEARS AGO CAUSED SEVEN HUNDRED SEVENTY FIVE MILLION DOLLARS IN LOSSES THE BIGGEST INSURERS IN THE STATE ARE STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY WITH TWENTY FIVE POINT SEVEN PERCENT OF THE CALIFORNIA HOMEOWNERS MARKET FOLLOWED BY ALLSTATE CORPORATION WITH FIFTEEN POINT SIX PERCENT FARMERS INSURANCE COMPANY A UNIT OF B.A.TT INDUSTRIES P. L. C. HAS A THIRTEEN POINT FIVE PERCENT SHARE OTHER COMPANIES WITH SIGNIFICANT EXPOSURE ARE THE CALIFORNIA STATE AUTOMOBILE ASSOCIATION U. S. A. A. GROUP ALLIANZ A. G. HOLDINGS' FIREMAN'S FUND INSURANCE COMPANY SAFECO CORPORATION TWENTIETH CENTURY INDUSTRIES CHUBB AND TIG HOLDINGS INCORPORATED ACCORDING TO A. M. BEST UNCERTAINTY OVER THE QUAKE DELAYED THE OPENING OF ALLSTATE STOCK AS TRADERS SORTED OUT AN IMBALANCE IN ORDERS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ALLSTATE CLOSED AT TWENTY EIGHT POINT SIX TWO FIVE DOLLARS DOWN ONE DOLLAR CHUBB CLOSED AT SEVENTY SEVEN POINT THREE SEVEN FIVE DOLLARS DOWN THIRTY SEVEN POINT FIVE CENTS AND TIG FELL TO TWENTY ONE POINT EIGHT SEVEN FIVE DOLLARS DOWN THIRTY SEVEN POINT FIVE CENTS ON THE NASDAQ STOCK MARKET SAFECO CLOSED AT FIFTY THREE POINT EIGHT SEVEN FIVE DOLLARS DOWN TWENTY FIVE CENTS OUR BIGGEST CONCERN WAS WORKERS COMPENSATION CLAIMS IF IT HAPPENED DURING THE WORK HOURS SAID LOUIS PAGLIA SENIOR VICE PRESIDENT OF TIG QUOTE WE WERE FORTUNATE ABOUT THAT QUOTE REINSURANCE IN WHICH INSURANCE COMPANIES BUY PROTECTION FOR THEIR OWN POTENTIAL LOSSES WILL SOFTEN THE BLOW FOR MANY INSURERS STATE FARM GOES WITHOUT REINSURANCE BECAUSE ITS SIZE MAKES THE PROTECTION PROHIBITIVELY EXPENSIVE BUT OTHER INSURERS GENERALLY HAVE COVERAGE SAFECO FOR INSTANCE PAYS ONLY TEN PERCENT OF ITS LOSSES AFTER THE FIRST THIRTY FIVE MILLION DOLLARS IF THE QUAKE HAD BEEN EVEN MORE SEVERE INSURANCE STOCKS MIGHT HAVE RISEN COMMERCIAL INSURANCE PRICES HAVE BEEN SLIDING FOR THE PAST SIX YEARS BECAUSE OF INTENSE COMPETITION ANALYSTS SAY DEVESTATING DISASTER LOSSES MIGHT TRIGGER A TURNAROUND IN PRICES AS INSURERS SEEK TO RECOVER THEIR LOSSES ANYTHING THAT WILL DESTROY CAPITAL IN THIS INDUSTRY IS GOOD FOR PRICES SAID JOHN FIELDS A SENIOR PORTFOLIO MANAGER WITH DELAWARE MANAGEMENT COMPANY AN INVESTMENT MANAGEMENT FIRM BASED IN PHILADELPHIA BUT EVEN THE SIXTEEN POINT FIVE BILLION DOLLARS PAID IN CLAIMS ON HURRICANE ANDREW WASN'T ENOUGH TO TURN THE INSURANCE CYCLE PRICES FOR PROPERTY CATASTROPHE REINSURANCE ROSE SHARPLY AFTER THE STORM AND SOME OTHER SPECIALITY LINES FIRMED BUT COMMERCIAL LIABILITY INSURANCE FOR INSTANCE CONTINUED TO FALL THIS WILL NOT BE THE KIND OF EVENT THAT TURNS THE CYCLE IN ITSELF SAID LEHMAN BROTHER'S MR. SMITH INSURANCE COMPANIES DON'T LIKE TO INSURE AGAINST EARTHQUAKES BECAUSE THEY ARGUE THEY CAN'T SPREAD THE RISKS THAT'S BECAUSE ONLY THE HOMEOWNERS MOST AT RISK THOSE WHO LIVE ALONG THE FAULT LINES BUY IT FOR THE PAST FIVE YEARS CALIFORNIA HAS ORDERED THAT INSURERS OFFER IT AS AN OPTION THE COST FOR EARTHQUAKE PROTECTION ADDS ONE HUNDRED FIFTY DOLLARS TO THREE HUNDRED DOLLARS A YEAR TO THE ANNUAL COST OF AN AVERAGE POLICY WHICH WITHOUT EARTHQUAKE PROTECTION COSTS ABOUT FOUR HUNDRED FIFTY DOLLARS ACCORDING TO THE INSURANCE INFORMATION INSTITUTE TO KEEP COSTS DOWN THE POLICIES FEATURE DEDUCTIBLES OF UP TO TEN PERCENT ON THE AMOUNT COVERED A HOME VALUED AT THREE HUNDRED THOUSAND DOLLARS WOULD HAVE TO SUSTAIN THIRTY THOUSAND DOLLARS IN DAMAGES BEFORE THE INSURER PAYS INSURANCE COMPANIES SENT TEAMS OF ADJUSTERS INTO THE AFFECTED AREAS YESTERDAY BUT THEIR RESPONSE WAS SLOWED BECAUSE OF DAMAGE SUSTAINED AT THEIR OWN FACILITIES AMES DEPARTMENT STORES INCORPORATED ROCKY HILL CONNECTICUT SAID EARNINGS FOR THE NINE WEEKS ENDED JANUARY FIRST FELL NINETY THREE PERCENT TO SIXTY TWO POINT TWO MILLION DOLLARS BUT ROSE SIGNIFICANTLY ON AN OPERATING BASIS FOR THE YEAR EARLIER PERIOD THE COMPANY REPORTED NET INCOME OF EIGHT HUNDRED EIGHTY FOUR POINT TWO MILLION DOLLARS PROPELLED BY A ONE TIME GAIN THE LATEST PERIOD'S RESULTS COMPARE WITH PROFIT BEFORE EXTRAORDINARY ITEMS OF TWENTY SIX POINT ONE MILLION DOLLARS FOR THE YEAR EARLIER PERIOD ENDED DECEMBER TWENTY SIXTH AMES WHICH EMERGED FROM FEDERAL BANKRUPTCY LAW PROTECTION DECEMBER THIRTIETH NINETEEN NINETY TWO SAID A THREE HUNDRED NINETY ONE POINT TWO MILLION DOLLAR WRITE DOWN OF ASSETS UNDER NEW REPORTING RULES STEMMING FROM ITS EMERGENCE FROM CHAPTER ELEVEN WAS OFFSET PARTLY BY A ONE TIME ONE POINT TWO FOUR BILLION DOLLAR GAIN FROM THE DISCHARGE OF DEBT SALES FOR THE NINE WEEKS FELL FIVE PERCENT TO FIVE HUNDRED SIXTY EIGHT POINT FOUR MILLION DOLLARS FROM SIX HUNDRED ONE MILLION DOLLARS THE COMPANY SAID IT DOESN'T EXPECT JANUARY TO BE PROFITABLE AND PREDICTED ONLY MODEST PROFIT FOR THE YEAR ENDING JANUARY TWENTY NINTH IT PLANS TO PROVIDE PER SHARE FIGURES WHEN IT REPORTS FOURTH QUARTER AND FULL YEAR RESULTS IN APRIL SIEMENS A. G.'S SALES FOR THE FISCAL FIRST QUARTER ENDED DECEMBER THIRTY FIRST ROSE TWO POINT FOUR PERCENT TO SEVENTEEN POINT THREE BILLION MARKS NINE POINT EIGHT NINE BILLION DOLLARS FROM SIXTEEN POINT NINE BILLION MARKS A YEAR EARLIER AN ARTICLE FRIDAY INCORRECTLY STATED THAT SALES ROSE TO ONE POINT THREE BILLION MARKS NAUTICA ENTERPRISES INCORPORATED BASED IN NEW YORK REPORTED THAT NET INCOME IN ITS FISCAL THIRD QUARTER ENDED NOVEMBER THIRTIETH ROSE TO FIFTY FOUR CENTS A SHARE FROM THIRTY SIX CENTS A SHARE A YEAR EARLIER AN ARTICLE FRIDAY ABOUT EARNINGS ESTIMATES FOR APPAREL COMPANIES INCORRECTLY REPORTED THAT THE RESULTS WERE FOR THE COMPANY'S FOURTH QUARTER I. C. H. CORPORATION IN ANOTHER RESTRUCTURING MOVE SAID TWO COMPANIES AGREED TO PURCHASE MAJOR CHUNKS OF ITS COMMON STOCK FROM ITS CONTROLLING SHAREHOLDER STEPHENS INCORPORATED A LITTLE ROCK ARKANSAS INVESTMENT BANK WILL BUY FOUR POINT FIVE MILLION SHARES OR ABOUT NINE PERCENT OF THE SHARES OUTSTANDING AND TORCHMARK CORPORATION A BIRMINGHAM ALABAMA INSURANCE COMPANY WILL PURCHASE ABOUT FOUR POINT SEVEN MILLION SHARES OR NEARLY TEN PERCENT FROM CONSOLIDATED NATIONAL CORPORATION THE TWO WILL PAY FIVE DOLLARS A SHARE CONSOLIDATED IS AN INSURANCE HOLDING COMPANY CONTROLLED BY ROBERT T. SHAW I. C. H.'S FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER A SPOKESMAN FOR I. C. H. LOUISVILLE KENTUCKY SAID THE ACTIONS ARE PART OF I. C. H.'S RESTRUCTURING WHICH INCLUDES CUTTING DEBT AND BOLSTERING THE BALANCE SHEET THEY ALSO STEM FROM MR. SHAW'S DESIRE TO REDUCE HIS TIES TO I. C. H. HE SAID CONSOLIDATED WILL STILL OWN ONE MILLION COMMON SHARES OR ABOUT TWO PERCENT OF THE SHARES OUTSTANDING AND FIVE HUNDRED FORTY ONE THOUSAND SHARES OF SERIES NINETEEN EIGHTY FOUR CLASS A PREFERRED STOCK EXECUTIVES PUT A PERSONAL STAMP ON SPEECH PREPARATION FRANK GRATZER HEAD OF BUSINESS MARKETS AT BELL COMMUNICATIONS RESEARCH CORPORATION BRINGS PEPPERMINTS AND WATER TO EACH SPEECH BUT CONSUMES NEITHER QUOTE IT'S IMPORTANT FOR ME TO KNOW THAT THEY'RE THERE QUOTE HE SAYS PHILIPPE KAHN HEAD OF BORLAND INTERNATIONAL READS ABOUT GREAT SPEECHES AND ORATORS HIS ROLE MODEL PHYSICIST RICHARD FEYNMAN WHO TURNED DULL TOPICS INTO INTERESTING TALKS WILFRED CORRIGAN CHIEF EXECUTIVE OF L. S. I. LOGIC CORPORATION WRITES HIS SPEECHES ON YELLOW LEGAL TABLETS BUT RARELY REFERS TO THE TEXT DURING THE TALK HIS MILPITAS CALIFORNIA COMPANY HIRES A CONSULTANT TO HELP EXECUTIVES IRON THE UMS AND AHS OUT OF THEIR TALKS HUMOR IS A MUST BUT BE CAREFUL SAYS BRADFORD SMITH THE THIRD SECRETARY TREASURER OF AW COMPUTER SYSTEMS INCORPORATED MOUNT LAUREL N. J. POKE FUN AT YOURSELF HE SAYS BUT NEVER AT THE AUDIENCE SALES PEOPLE TAKE A VARIETY OF COMPANIONS ON BONUS TRIPS TOP PRODUCERS LONG HAVE BEEN ENCOURAGED TO TAKE SPOUSES ON TRIPS AWARDED FOR MEETING SALES GOALS NOW SOME COMPANIES HONE POLICIES TO ACCOUNT FOR DIFFERENT PARTNERS NEXT YEAR XEROX CORPORATION WILL INCLUDE SIGNIFICANT OTHERS ON ITS PRESIDENT'S CLUB TRIP UNUM CORPORATION PORTLAND MAINE REQUIRES COMPANIONS TO BE AT LEAST TWENTY ONE YEARS OLD AND PARTNERS IN MEANINGFUL RELATIONSHIPS DEFINED AS PLAYING A SIGNIFICANT ROLE IN EMPLOYEES' BUSINESS SUCCESS STILL MOST COMPANIES TAKE A HANDS OFF ATTITUDE AT DIGITAL EQUIPMENT CORPORATION WHICH HAS NO RESTRICTIONS SOME WINNERS BRING THEIR MOTHERS ABOUT NINETY NINE PERCENT OF COMPANIONS ON TRIPS SPONSORED BY PRE PAID LEGAL SERVICES INCORPORATED ADA OKLAHOMA ARE SPOUSES AT BEAUTICONTROL INCORPORATED DALLAS WINNERS CAN BRING QUOTE WHOMEVER THEY LIKE QUOTE A BATTLE ROYAL BREWS OVER A PLAN TO TIGHTEN WORKPLACE HEALTH AND SAFETY LAWS THE LABOR DEPARTMENT BACKS A CAPITOL HILL PLAN THAT WOULD FORCE COMPANIES WITH ELEVEN OR MORE WORKERS TO SET UP EMPLOYEE SAFETY TEAMS THE BILL ALSO WOULD BOOST CRIMINAL PENALTIES FOR SAFETY VIOLATIONS AND EXTEND SAFETY LAWS TO PUBLIC EMPLOYEES UNIONS LAUD THE BILL SPONSORED BY SENATOR EDWARD KENNEDY OF MASSACHUSETTS AND REPRESENTATIVE WILLIAM FORD OF MICHIGAN BOTH DEMOCRATS BUT BUSINESS RAGES THAT IT WAS DUPED BY THE WHITE HOUSE THERE'S BEEN NO GOOD FAITH ON THEIR PART NO ACKNOWLEDGMENT OF OUR CONCERNS SEETHES PETE LUNNIE OF THE NATIONAL ASSOCIATION OF MANUFACTURERS AFTER MEETINGS WITH EXECUTIVES GOVERNMENT OFFICIALS SURE AS HELL IGNORED EVERYTHING WE HAD TO SAY HE COMPLAINS LABOR POLICY ASSOCIATION PRESIDENT JEFFREY MCGUINESS SAYS IT LOOKS LIKE CLINTONITES WANT TO GO TO WAR LABOR SECRETARY ROBERT REICH IS SET TO TESTIFY NEXT MONTH ON THE BILL WHICH BACKERS HOPE TO MOVE THIS SPRING DESPITE REPUBLICAN OPPOSITION THINK YOUR JOB'S TOUGH MORE THAN A THIRD OF ALL EMERGENCY ROOM NURSES ARE ASSAULTED ON THE JOB EACH YEAR AND NEARLY TWENTY PERCENT HAVE CONSIDERED QUITTING BECAUSE OF VIOLENCE SAYS PENNSYLVANIA STATE UNIVERSITY ASSISTANT PROFESSOR BEVERLY SAXTON MAHONEY A FORMER EMERGENCY ROOM NURSE HER STUDY OF ONE THOUSAND TWO HUNDRED NINE REGISTERED NURSES SHOWED THAT SIXTY FOUR PERCENT REPORTED AT LEAST ONE PHYSICAL ASSAULT IN THEIR CAREERS FAT TRIMMING SKEPTICS NEARLY TWO THIRDS OF BENEFITS EXPERTS THINK THE CLINTON HEALTH CARE PLAN WON'T LOWER ADMINISTRATIVE COSTS ACCORDING TO A SURVEY BY THE INTERNATIONAL SOCIETY OF CERTIFIED EMPLOYEE BENEFIT SPECIALISTS THEY SPLIT OVER WHETHER THE WHITE HOUSE PLAN IS TOO GENEROUS WITH ABOUT FORTY PERCENT SAYING IT IS AND THE SAME NUMBER SAYING IT IS JUST RIGHT WANTED SERIOUS ADVICE ONLY THE GLASS CEILING COMMISSION A LABOR DEPARTMENT LED PANEL PLANS HEARINGS IN LOS ANGELES CLEVELAND AND NEW YORK TO HEAR SUCCESS STORIES OF ADVANCEMENT FOR WOMEN AND MINORITIES WE KNOW THE SOB STORIES SAYS EXECUTIVE DIRECTOR JOYCE MILLER NOW WE WANT CONSTRUCTIVE SUGGESTIONS EMPLOYERS' FINANCIAL HEALTH MAY BE BETTER EXPLAINED IN PENSION REPORTS THE LABOR DEPARTMENT SEEKS PUBLIC COMMENT ON IMPROVING PENSION PLAN DISCLOSURE MOST INFORMATION SENT TO RETIREMENT PLAN PARTICIPANTS QUOTE HAS NOT CHANGED SINCE THE NINETEEN SEVENTIES QUOTE WHEN THE EMPLOYEE RETIREMENT INCOME SECURITY ACT WAS WRITTEN SAYS OLENA BERG ASSISTANT LABOR SECRETARY ONE HOT BUTTON WHETHER AN UNDERFUNDED PLAN SHOULD BE FORCED TO TELL EMPLOYEES ALL THE GORY DETAILS BUSINESS GROUPS CONCEDE THAT INFORMATION PROVIDED TO CURRENT AND FUTURE RETIREES COULD USE AN OVERHAUL BUT THE GOVERNMENT COULD REALLY INCREASE THE BURDENS ON COMPANIES WITHOUT EFFECTIVELY COMMUNICATING WHAT YOU WANT TO COMMUNICATE SAYS LYNN DUDLEY OF THE ASSOCIATION OF PRIVATE PENSION AND WELFARE PLANS THERE'S A FINE LINE BETWEEN EDUCATING PEOPLE AND FRIGHTENING THEM MUCH INFORMATION ALREADY EXISTS BUT RETIREES DON'T RECEIVE IT PENSION EXPERTS SAY COMMENTS MUST BE SUBMITTED TO THE LABOR DEPARTMENT BY FEBRUARY TWENTY FIFTH THE CHECKOFF THE PERFECT VALENTINE'S DAY GIFT NEW YORK BUSINESSMAN SY GRU CREATES A WALLET SIZED GUIDE OF ACTIONS THAT CONSTITUTE SEXUAL HARASSMENT AND HOW TO AVOID THEM WORKING WOMAN MAGAZINE PROPOSES THE HUMILIATION APPROACH TO FIGHT HARASSMENT INSTALL X. RATED SOFTWARE ON OFFENDERS' COMPUTERS THEN TURN THE MONITORS SO ANYONE LOOKING IN THE DOOR CAN SEE THE DISPLAY THE CHICAGO BOARD OF TRADE WILL ANNOUNCE TODAY THAT IT HOPES TO JOIN FORCES WITH BLOOMBERG FINANCIAL PRODUCTS TO DEVELOP AN ELECTRONIC TRADING SYSTEM FOR CASH GOVERNMENT SECURITIES THE BOARD OF TRADE NOW OFFERS INVESTORS HUGELY POPULAR FUTURES AND OPTIONS CONTRACTS BASED ON U. S. TREASURY BONDS NOTES AND BILLS AND IT ALSO WANTS TO TRADE THE SECURITIES THEMSELVES UNDER THE PROPOSAL FIRMS THAT OWN MEMBERSHIPS AT THE C. B. O. T. WOULD BE ABLE TO TRADE GOVERNMENT SECURITIES BY PUNCHING ORDERS INTO ELECTRONIC COMPUTER TERMINALS BLOOMBERG WHICH IS BEST KNOWN FOR ITS BLOOMBERG FINANCIAL NEWS SERVICE WOULD HANDLE THE TECHNICAL END OF THE PROJECT PEOPLE FAMILIAR WITH THE PROPOSAL SAID THE C. B. O. T. WILL UNVEIL ITS PLAN AT A NEWS CONFERENCE TODAY THE PEOPLE SAID IT WILL RESEMBLE ELECTRONIC JOINT VENTURE OR EJV A SIMILAR BUT ILL FATED C. B. O. T. PROPOSAL THAT DIED WHEN THE SECURITIES AND EXCHANGE COMMISSION DECLINED TO GIVE THE SYSTEM ITS BLESSING TO MAKE THE NEW PROPOSAL A REALITY THE BIG CHICAGO EXCHANGE AND BLOOMBERG WILL NEED APPROVAL FROM THE S. E. C. MANY BUSINESSES WITH OPERATIONS IN LOS ANGELES WERE DISRUPTED BY THE EARTHQUAKE COMPANIES SHUT PLANTS AND OFFICES RETAILERS REPORTED HEAVY DAMAGE TO SOME STORES AND AIRLINES CANCELED OR DELAYED FLIGHTS BUT THE DAMAGE APPARENTLY WASN'T WIDESPREAD WHILE BUSINESSES CLOSE TO THE QUAKE'S EPICENTER WERE HIT HARD OFFICES JUST TWENTY MILES AWAY WERE UNTOUCHED ALSO THE EARTHQUAKE OCCURRED AT FOUR THIRTY ONE A. M. P. S. T. A TIME WHEN TRAFFIC WAS LIGHT AND ON A DAY WHEN MANY WORKERS WERE OFF FOR THE MARTIN LUTHER KING JUNIOR HOLIDAY NEVERTHELESS IT WAS DIFFICULT TO ASSESS THE FULL EXTENT OF THE DAMAGE AND IT WASN'T CLEAR WHEN MANY BUSINESSES WOULD GET BACK TO NORMAL LOS ANGELES'S CHIEF OF POLICE AT A NEWS CONFERENCE YESTERDAY URGED BUSINESSES TO REMAIN CLOSED TODAY THE LOCAL PHONE NETWORK EMERGED FROM THE QUAKE RELATIVELY INTACT BUT CALLING INTO AND OUT OF THE AREA WAS DIFFICULT TO IMPOSSIBLE THROUGHOUT THE DAY BECAUSE OF THE HEAVY VOLUME OF CALLING MANY COMPANIES HAD DIFFICULTY CONTACTING THEIR OPERATIONS IN THE LOS ANGELES AREA RETAILERS WERE HIT PARTICULARLY HARD R. H. MACY AND COMPANY REPORTED EXTENSIVE DAMAGE AT ITS STORES IN LOS ANGELES IT SAID EIGHT DEPARTMENT STORES IN ITS BULLOCKS CHAIN WERE HIT WITH THE NORTHRIDGE MALL STORE AT THE VERY EPICENTER OF THE QUAKE A MACY SPOKESWOMAN SAID THAT STORE SUFFERED EXTENSIVE STRUCTURAL DAMAGE AND SPRINKLERS THAT WENT OFF DAMAGED SOME MERCHANDISE MACY SAID NONE OF ITS EMPLOYEES WERE INJURED THOUGH ALL EIGHT OF THE STORES REMAINED CLOSED YESTERDAY DAYTON HUDSON CORPORATION SAID TEN OF ITS MERVYN'S DEPARTMENT STORES AND SIX TO TWELVE OF ITS TARGET DISCOUNT STORES WERE DAMAGED A SPOKESWOMAN SAID FIVE MERVYN'S STORES SUSTAINED QUOTE A GREAT DEAL OF DAMAGE QUOTE INCLUDING BUCKLED WALLS FALLEN CEILING TILE AND WATER DAMAGE FROM SPRINKLERS WHILE TWO TARGET STORES HAD MAJOR STRUCTURAL DAMAGE TWO EMPLOYEES AT A TARGET STORE IN VALENCIA WERE INJURED WHEN STOCKROOM SHELVING TOPPLED OVER ON THEM THE SPOKESWOMAN SAID THEY WERE TAKEN TO AN AREA HOSPITAL BY AMBULANCE BUT SHE DIDN'T KNOW THE EXTENT OF THEIR INJURIES AT ONE TARGET STORE IN GRANADA HILLS NINETY EIGHT PERCENT OF THE CEILING TILE HAD FALLEN THAT WOULD MEAN A LOT OF MERCHANDISE ON THE SHELVES IS ALSO DOWN THE SPOKESWOMAN ADDED SEARS ROEBUCK AND COMPANY SAID TEN OF ITS TWENTY SEVEN LOS ANGELES AREA STORES SUFFERED DAMAGE AND EIGHT REMAINED CLOSED YESTERDAY IT SAID ANOTHER WAS CLOSED BECAUSE OF LACK OF POWER A SPOKESMAN FOR CARTER HAWLEY HALE STORES INCORPORATED SAID MANY IF NOT ALL OF THE COMPANY'S ELEVEN STORES IN THE AREA WERE CLOSED AS WAS THE LOS ANGELES HEADQUARTERS IN THE LOS ANGELES BASIN POWER OUTAGES SWEPT THROUGHOUT MUCH OF THE AREA AS TRANSMISSION SUBSTATIONS TRANSFORMERS AND POWER LINES WENT DOWN BY SOME ESTIMATES AS MANY AS ONE POINT THREE MILLION PEOPLE WERE WITHOUT POWER SHORTLY AFTER THE QUAKE OFFICIALS AT SOUTHERN CALIFORNIA EDISON THE UTILITY OPERATING UNIT OF S. C. E. CORPORATION INITIALLY REPORTED SEVEN HUNDRED FIFTY THOUSAND OF ITS APPROXIMATELY FOUR MILLION CUSTOMERS WITHOUT POWER BY MIDAFTERNOON ONE HUNDRED TWENTY FIVE THOUSAND OF THE UTILITY'S CUSTOMERS HAD REGAINED POWER BUT A SPOKESWOMAN SAID UNTIL PHYSICAL INSPECTIONS OF DAMAGED AREAS HAD BEEN COMPLETED IT WOULD BE DIFFICULT TO ESTIMATE WHEN POWER WOULD BE RESTORED TO ALL ITS CUSTOMERS THE EARTHQUAKE ALSO RATTLED THE INTERWOVEN ELECTRICITY GRID SYSTEM CAUSING SCATTERED OUTAGES AS FAR NORTH AS ALBERTA AND BRITISH COLUMBIA IN IDAHO ABOUT ONE HUNDRED TEN THOUSAND CUSTOMERS LOST POWER FOR THREE HOURS AS THE GRID SOUGHT TO CORRECT LOAD PROBLEMS STEMMING FROM THE QUAKE COMMUNICATIONS COMPANIES WERE BURDENED BY THE HEAVY VOLUME OF CALLERS IN SOME CASES LOS ANGELES RESIDENTS HAD TO WAIT THIRTY SECONDS OR MORE TO GET A DIAL TONE INCOMING CALLERS OFTEN FOUND THEMSELVES LISTENING TO A RECORDING INDICATING THAT ALL CIRCUITS WERE BUSY THERE WERE REPORTS OF SCATTERED BREAKS IN THE NETWORK THAT CAUSED SOME AREAS TO LOSE PHONE SERVICE BY LATE AFTERNOON PACIFIC TELESIS GROUP'S PACIFIC BELL SAID MOST AREAS HAD FULL PHONE SERVICE RESTORED PACIFIC BELL WHICH HAS ABOUT THREE POINT FIVE MILLION CUSTOMERS IN THE AFFECTED AREA ASKED LONG DISTANCE COMPANIES AMERICAN TELEPHONE AND TELEGRAPH COMPANY M. C. I. COMMUNICATIONS CORPORATION AND SPRINT CORPORATION TO RESTRICT INCOMING CALLS TO SOUTHERN CALIFORNIA TO HELP KEEP LINES OPEN FOR EMERGENCY OUTGOING CALLS A. T. AND T. SAID IT LOST SOME LONG DISTANCE SERVICES INTO AND OUT OF PARTS OF LOS ANGELES BECAUSE OF EQUIPMENT DAMAGE AND POWER FAILURE UNTIL EQUIPMENT WAS BACK IN SERVICE A. T. AND T. WAS ASSISTING CUSTOMERS IN PLACING CALLS AND PROVIDING ACCESS CODES SO THAT CUSTOMERS COULD PLACE THEIR CALLS OVER THE NETWORKS OF OTHER COMPANIES INCLUDING RIVALS M. C. I. AND SPRINT WHICH REPORTED NO NETWORK OUTAGES TRANSPORTATION COMPANIES ALSO WERE AFFECTED AS THE EARTHQUAKE COLLAPSED HIGHWAYS AND DAMAGED RAIL LINES THE LOS ANGELES INTERNATIONAL AIRPORT WAS CLOSED FOR ABOUT TWO HOURS DISRUPTING MANY FLIGHTS OTHER AREA AIRPORTS ALSO WERE BRIEFLY CLOSED U. A. L. CORPORATION'S UNITED AIRLINES SAID IT CANCELED AT LEAST FORTY FLIGHTS STEMMING FROM THE EARTHQUAKE U. S. AIR GROUP INCORPORATED'S U. S. AIR SAID ONE OF ITS JETWAYS AT THE AIRPORT WAS TWISTED A LITTLE BIT AND ITS TERMINAL LOST A FEW CEILING TILES BUT BOTH AIRLINES SAID THEY BELIEVED BAD WEATHER ON THE EAST COAST WOULD RESULT IN EVEN BIGGER DELAYS THE EARTHQUAKE SHUT INTERSTATE FIVE THE PRIMARY TRAFFIC ARTERY BETWEEN NORTHERN AND SOUTHERN CALIFORNIA WHEN A SECTION OF ROAD COLLAPSED THE CLOSURE CREATED LENGTHY DETOURS AND DELAYS FOR TRUCKERS WE HAVE TO REROUTE FREIGHT TO THE EAST AND NORTH A COUPLE HUNDRED MILE DETOUR SAID A SPOKESMAN FOR CONSOLIDATED FREIGHTWAYS INCORPORATED WE'LL MOVE THE FREIGHT BUT NOT WITHOUT EXPENSE AND NOT WITHOUT TROUBLE HE SAID SOUTHERN PACIFIC LINES A UNIT OF SOUTHERN PACIFIC RAIL CORPORATION SAID A SUBSTANTIAL SHIFT IN TRACK NEAR THE EPICENTER OF THE EARTHQUAKE DERAILED ONE TRAIN THE COMPANY SAID THERE WERE NO INJURIES AMONG THE DERAILED CARS WERE SIXTEEN TANK CARS THAT SPILLED FIVE THOUSAND GALLONS OF SULFURIC ACID AND THREE THOUSAND GALLONS OF DIESEL FUEL THE COMPANY SAID VACUUM TRUCKS WERE DISPATCHED TO THE SCENE BUT IMPORTANT EAST WEST TRANSCONTINENTAL RAIL LINKS TO THE AREA ESCAPED THE EARTHQUAKE WITH ONLY MINOR DELAYS AND ARE EXPECTED TO RETURN TO NORMAL OPERATIONS TODAY RAILROAD OFFICIALS SAID COMPUTER COMPANIES BASED IN THE LOS ANGELES AREA ESCAPED RELATIVELY UNDAMAGED BECAUSE MOST ARE CONCENTRATED FAR SOUTH OF THE QUAKE'S EPICENTER IN THE SAN FERNANDO VALLEY THE OIL REFINING INDUSTRY OF CALIFORNIA THE NATION'S THIRD LARGEST BEHIND TEXAS AND LOUISIANA WAS LARGELY UNHARMED ALTHOUGH SEVERAL PLANTS LOST POWER AND MANY PIPELINES SHUT DOWN IMMUNOMEDICS INCORPORATED SAID DAVID W. ORTLIEB PRESIDENT AND CHIEF EXECUTIVE OFFICER SINCE JULY NINETEEN NINETY TWO IS RESIGNING EFFECTIVE FEBRUARY FIRST MR. ORTLIEB SIXTY THREE YEARS OLD WAS NOT AVAILABLE FOR COMMENT YESTERDAY A SPOKESWOMAN SAID HE IS LEAVING THE COMPANY FOR QUOTE PERSONAL REASONS QUOTE DAVID M. GOLDENBERG FIFTY FIVE CHAIRMAN OF THE BOARD AND FOUNDER OF THE BIOPHARMACEUTICAL COMPANY WILL BECOME CHIEF EXECUTIVE A POSITION HE HAS HELD FOR MOST OF THE COMPANY'S ELEVEN YEAR EXISTENCE THE POSITION OF PRESIDENT WILL NOT BE FILLED THE COMPANY SAID IN ADDITION AMY FACTOR THIRTY SIX VICE PRESIDENT OF FINANCE AND ADMINISTRATION TREASURER AND SECRETARY WILL BECOME EXECUTIVE VICE PRESIDENT A NEW POSITION MS. FACTOR WILL TAKE ON SOME OF MR. ORTLIEB'S TASKS IN ADDITION TO HER CURRENT RESPONSIBILITIES THE SPOKESWOMAN SAID MR. ORTLIEB HAD BEEN A DIRECTOR OF THE COMPANY SINCE NOVEMBER NINETEEN NINETY ONE AND STEPPED IN TO HELP IMMUNOMEDICS ESTABLISH ITS MANUFACTURING FACILITY AND LAUNCH THE COMPANY'S FIRST IMAGING AGENT DOCTOR GOLDENBERG SAID ALTHOUGH HE HAD SIGNED A THREE YEAR CONTRACT IT WAS UNDERSTOOD THAT HE COULD LEAVE EARLIER ONCE HE COMPLETED THE TASK DOCTOR GOLDENBERG ADDED HE CAME IN TO HELP US AS A TEMPORARY MEASURE AND FINISHED THE TASK IN A YEAR AND A HALF WYMAN GORDON COMPANY NORTH GRAFTON MASSACHUSETTS SAID IT AGREED TO BUY COOPER INDUSTRIES INCORPORATED'S FORGING DIVISION IN A CASH AND STOCK DEAL WITH AN INDICATED VALUE OF EIGHTY SEVEN POINT FIVE MILLION DOLLARS UNDER TERMS WYMAN GORDON WILL ISSUE SIXTEEN POINT FIVE MILLION NEW COMMON SHARES TO COOPER AND PAY THE HOUSTON ELECTRICAL PRODUCTS AND INDUSTRIAL EQUIPMENT MAKER FIVE MILLION DOLLARS IN CASH FOLLOWING THE PROPOSED ACQUISITION WHICH IS SUBJECT TO SHAREHOLDER AND GOVERNMENT REGULATORY APPROVAL COOPER WILL HOLD ABOUT FORTY EIGHT PERCENT OF WYMAN GORDON'S SHARES OUTSTANDING IN NASDAQ STOCK MARKET TRADING YESTERDAY WYMAN GORDON ROSE FIFTY CENTS OR TEN PERCENT TO FIVE POINT THREE SEVEN FIVE DOLLARS IN NEW YORK STOCK EXCHANGE TRADING COOPER FELL TWENTY FIVE CENTS TO FIFTY POINT SIX TWO FIVE DOLLARS PITTENCRIEFF COMMUNICATIONS INCORPORATED ABILENE TEXAS AND THE COMPANY'S MAJORITY OWNER PITTENCRIEFF P. L. C. OF SCOTLAND REACHED AN AGREEMENT UNDER WHICH IT EFFECTIVELY WOULD SPIN OFF TO ITS SHAREHOLDERS ITS FIFTY FOUR PERCENT STAKE IN THE PUBLICLY TRADED WIRELESS COMMUNICATIONS CONCERN AS PART OF THE SPINOFF PITTENCRIEFF P. L. C. SHAREHOLDERS WOULD HAVE THE OPTION OF RECEIVING AN UNSPECIFIED AMOUNT OF CASH INSTEAD OF SHARES IN PITTENCRIEFF COMMUNICATIONS IF THE SPINOFF ISN'T CARRIED OUT PITTENCRIEFF COMMUNICATIONS HAS AGREED TO BUY BACK THE SCOTTISH COMPANY'S STAKE FOR CASH PITTENCRIEFF P. L. C.'S MAIN BUSINESS IS OIL AND GAS IN NASDAQ STOCK MARKET TRADING PITTENCRIEFF COMMUNICATIONS FELL TWO DOLLARS AND FIFTY CENTS OR EIGHT POINT FIVE PERCENT TO TWENTY SIX DOLLARS AND SEVENTY FIVE CENTS WITH NINE POINT EIGHT BILLION DOLLARS IN ANNUAL REVENUES AND A SIXTH OF THE NATION'S FORTY MILLION H. M. O. SUBSCRIBERS THE OAKLAND BASED KAISER PERMANENTE FOUNDATION HEALTH PLAN IS CONSIDERED THE PARADIGM FOR PREPAID HEALTH CARE DELIVERY AND IT WEARS THE LABEL PROUDLY THE LATEST KAISER ANNUAL REPORT BRIMS WITH REFERENCES TO TOTAL QUALITY MANAGEMENT AND OTHER INDUSTRIAL BUZZWORDS A LOOK AT KAISER HOWEVER RAISES CONCERNS ABOUT THE MEDICAL AND ETHICAL UNDERPINNINGS OF MANAGED CARE A CORNERSTONE OF THE CLINTON HEALTH PLAN AND SEVERAL REFORM ALTERNATIVES THE KAISER SYSTEM IS ROOTED IN TWO CORE PRINCIPLES CUT THE FAT AND CONTROL THE PATIENT THE FAT TRIMMING SHOWS UP IN KAISER'S DOCTOR PATIENT RATIO WHICH AT ONE POINT THREE PER ONE THOUSAND IS ROUGHLY A THIRD THE NATIONAL AVERAGE FOR HEALTH CARE SYSTEMS AS FOR CONTROLLING THE PATIENT AT KAISER YOU CHECK YOUR RIGHT TO CHART YOUR OWN MEDICAL COURSE AT THE DOOR THAT PRIVILEGE FALLS TO THE MEDICAL GROUP TO WHICH YOU ARE ASSIGNED MEMBER PHYSICIANS WEIGH THE COST OF THE PROPOSED TREATMENT AGAINST ITS PROBABLE LONG TERM OUTCOME THIS IS THE VERY HEART OF MANAGED HEALTH CARE ENABLING KAISER AND ITS IMITATORS TO OFFER EMPLOYERS A SUBSTANTIAL SAVINGS IN PREMIUMS IN NINETEEN NINETY TWO U. S. COMPANIES PAID THREE THOUSAND THREE HUNDRED THIRTEEN DOLLARS PER WORKER FOR KAISER TYPE COVERAGE AS AGAINST FOUR THOUSAND EIGHTY DOLLARS FOR FEE FOR SERVICE INSURANCE BUT FOR CONSUMERS SUCH ECONOMIES COME AT A PRICE DESCRIPTIONS OF THE KAISER SYSTEM ARE UNCOMFORTABLY EVOCATIVE OF A FREE CLINIC WITH ROTATING CASTS OF DOCTORS OR NURSE PRACTITIONERS IF ONE'S COMPLAINT IS NOT DEEMED WORTHY OF A DOCTOR'S TIME ENDLESS WAITS FOR APPOINTMENTS AND TALES OF DOZENS OF PEOPLE STANDING IN LINE TO GIVE BLOOD OR URINE SAMPLES KAISER'S OWN IN HOUSE MAGAZINE COVERAGE REPORTED IN DECEMBER NINETEEN NINETY TWO THAT TWO THIRDS OF SUBSCRIBERS WERE DISSATISFIED WITH THE AMOUNT OF TIME ONE MUST SPEND ON THE PHONE TO MAKE AN APPOINTMENT AND IN FACT A RECORD SIXTY TWO THOUSAND SEVEN HUNDRED SUBSCRIBERS DEFECTED FROM KAISER THAT YEAR THE COVERAGE ARTICLE CONCEDED THAT THE EXODUS WAS PROMPTED AT LEAST IN PART BY QUOTE SERVICE ISSUES QUOTE AND KAISER OFFICIALS EXPRESSED THEIR COMMITMENT TO ADDRESSING THEM CRITICS CHARGE KAISER WITH VALUING THRIFT ABOVE THOROUGHNESS WEALTH OVER HEALTH THERE JUST ISN'T AS MUCH OF AN INCENTIVE FOR YOU TO STAY WELL AS THERE IS FOR THEM TO STAY PROFITABLE SAYS RICHARD MATTINGLY A SAN DIEGO BRANCH MANAGER FOR ROBERT F. DRIVER COMPANY A GIANT IN THE FIELD OF EMPLOYEE BENEFITS CONSULTING CONSIDER THE CASE OF ANGELA FARNUM NOW AGE THIRTY EIGHT MRS. FARNUM FELT THE FIRST TWINGE IN HER BREAST IN NINETEEN EIGHTY FIVE SHE PROMPTLY MADE AN APPOINTMENT WITH HER KAISER PHYSICIAN WHO SHE SAYS DISMISSED THE PROBLEM AS FIBROCYSTIC DISEASE A BENIGN CONDITION THE SYMPTOMS PERSISTED AND SHE REQUESTED A MAMMOGRAM BUT ACCORDING TO MRS. FARNUM HER DOCTOR SAID THERE WAS NO BASIS FOR THE TEST EVEN CHASTISING HER FOR HER HYPOCHONDRIA WHEN SHE BECAME PREGNANT SOON AFTER AND THE SYMPTOMS ABATED MRS. FARNUM CONVINCED HERSELF THAT DOCTOR KNOWS BEST A FEW SPRINGS LATER WHILE NURSING HER THIRD CHILD MRS. FARNUM WAS AGHAST TO NOTE THAT THE INFANT APPEARED TO BE SPITTING UP BLOOD KAISER PHYSICIANS AGAIN WERE DISMISSIVE SHE SAYS LATER AFTER SHE COMPLAINED OF PAIN IN THE PELVIC AREA SHE SAYS KAISER STAFF INSISTED STILL ON THE BASIS OF A SUPERFICIAL EXAM THAT SHE SUFFERED FROM LINGERING POSTPARTUM SORENESS ONLY IN NINETEEN NINETY AFTER SHE FOUND DIMPLING IN HER BREAST A CLASSIC SIGN OF ADVANCING CANCER WAS MS. FARNUM ABLE TO OBTAIN AUTHORIZATION FOR MAGNETIC RESONANCE IMAGING M. R. I. THE RESULTS WERE DEVASTATING A VIRULENT CARCINOMA HAD METASTASIZED THROUGHOUT HER SYSTEM KAISER SPOKESMAN DANIEL DANZIG SAYS OUR CONTENTION IS THAT THE CHRONOLOGY AND PARTICULARS OF THE FARNUM CASE ARE NOT AS DAMNING AS HER ALLEGATIONS MAKE IT APPEAR STILL IN NINETEEN NINETY TWO MRS. FARNUM AND HER ATTORNEY MEREL NISSENBERG WON A FIVE HUNDRED THOUSAND DOLLAR SETTLEMENT FROM KAISER ANGELA FARNUM'S STORY IS HARDLY UNIQUE THERE'S THE WELLS FARGO TELLER WHOSE NAGGING SCIATICA TURNED OUT TO BE A SPINAL TUMOR THAT SPREAD TO HER BRAIN AND THE COSMETOLOGIST WHOSE CHRONIC FINGER FUNGUS TURNED OUT TO BE A MELANOMA THESE CASES EPITOMIZE A VERY SPECIFIC TYPE OF PROBLEM ARISING WITHIN MANAGED CARE THE OFF THE CUFF DIAGNOSIS THAT PROVES GRIEVOUSLY OFF THE MARK SAYS ATTORNEY SUSAN FINKELSTEIN ONE OF THE NEAR DOZEN MALPRACTICE SPECIALISTS CONSULTED FOR THIS PIECE QUOTE CLEARLY WITH KAISER THERE ARE A DISPROPORTIONATE NUMBER OF CASES RELATING TO CONTINUITY OF MEDICAL CARE OR INADEQUATE TESTING AND FOLLOWUP QUOTE JUST HOW MUCH IS HARD TO SAY PLAN MEMBERSHIP ENTAILS AN IMPLICIT CONSENT TO BINDING ARBITRATION KAISER'S POLICY OF PRIVATELY ADMINISTERED ARBITRATION FRUSTRATES ANY ATTEMPTS TO RESEARCH THE TOTAL NUMBER OF MALPRACTICE CLAIMS OR PERUSE RELEVANT TRANSCRIPTS AFTERWARD NOR FOR THAT MATTER IS THERE AN APPEAL PROCESS KAISER PARTISANS BRISTLE AT HAVING THEIR RECORD IMPUGNED ON THE BASIS OF DAMNING ANECDOTES SAYS HUGH JONES SENIOR VICE PRESIDENT AND GENERAL MANAGER OF THE SOUTHERN CALIFORNIA HEALTH PLAN IF THERE WERE A WAY TO COMPARE THE INCIDENCE OF THOSE TYPES OF OCCURRENCES IN OUR POPULATION WITH THE INCIDENCE IN OTHERS I THINK I'D BE VERY PROUD OF KAISER'S RECORD MR. JONES AND OTHERS CITE SURVEYS BY THE GROUP HEALTH ASSOCIATION OF AMERICA SHOWING THAT A TYPICAL CONTINGENT OF ONE THOUSAND H. M. O. ENROLLEES AGE SIXTY FIVE AND OVER WILL REQUIRE AN AGGREGATE OF ONLY ONE THOUSAND FIVE HUNDRED FORTY THREE DAYS OF ANNUAL HOSPITALIZATION AS AGAINST A NATIONAL AVERAGE OF ALMOST THREE THOUSAND DAYS CRITICS THOUGH DENOUNCE SUCH STATISTICS AS TENDENTIOUS SURE IF YOU DON'T HOSPITALIZE SICK PEOPLE THEY'LL SPEND FEWER DAYS IN THE HOSPITAL SAYS MS. NISSENBERG SOME OF THEM WILL GO STRAIGHT FROM THEIR HOMES TO THE MORGUE KAISER INSIDERS DO NOT DENY KEEPING A TIGHT REIN ON THE SCREENING TESTS COLLECTIVELY REGARDED AS THE HALLMARK OF CONTEMPORARY PREVENTIVE MEDICINE THERE ARE A LOT OF COMMON MYTHS ABOUT ROUTINE SCREENING ASSERTS KAISER C. E. O. DAVID LAWRENCE LIKE A PHYSICAL EXAM EVERY YEAR YOU DON'T NEED THAT QUOTE FIGURES SPECIFIC TO KAISER ARE HARD TO COME BY BUT DATA COMPILED BY THE NATIONAL AMBULATORY MEDICAL CARE SURVEY CONFIRM THAT H. M. O.S AND OTHER MANAGED CARE PLANS ARE LESS LIKELY TO AUTHORIZE HIGH TECH TESTING IN THE CASE OF M. R. I.S AND C. T. SCANS THE DIFFERENCE IS A FACTOR OF AT LEAST TWO TO ONE AS JUST ONE EXAMPLE MANAGED CARE GURUS HAVE DETERMINED THAT WOMEN UNDER AGE FIFTY DO NOT NEED ROUTINE MAMMOGRAMS AS FOR THE REPUTEDLY SMALL NUMBER OF WOMEN WHOSE CANCERS SUCH TESTS WOULD FIND THEY BECOME ACCEPTABLE LOSSES IN A SYSTEM DESIGNED FOR BROAD BASED COST CONTAINMENT SAYS DAN NIXON AMERICAN CANCER SOCIETY VICE PRESIDENT FOR PROFESSIONAL EDUCATION THE LOGIC SEEMS TO BE THAT IF A CERTAIN THERAPY IS OF DUBIOUS VALUE FOR THE MAJORITY THEN YOU DON'T OFFER IT TO THE MINORITY IT WILL BENEFIT EITHER OBTAINING AUTHORIZATION FOR TESTS CAN BE A SISYPHEAN UNDERTAKING EVEN FOR SOMEONE WHO IS BLEEDING RECTALLY VERNON STORY PRESENTED EVERY CLASSIC SYMPTOM THAT CRIED OUT FOR EVALUATION FOR COLON CANCER ACCORDING TO MEDICAL MALPRACTICE ATTORNEY VIRGINIA NELSON MS. NELSON CLAIMS THAT MR. STORY HAD PAIN THAT HE HAD THE BLEEDING THAT HE WAS A MALE IN HIS MID FORTIES AN AGE GROUP WHERE THIS SORT OF CANCER HAS BECOME ALL TOO PREVALENT MOST OMINOUSLY SHE REPORTS THAT VERNON'S FATHER DIED OF THAT VERY DISEASE WHILE IN HIS FORTIES EVEN SO OVER AN EIGHT YEAR PERIOD THE ATTORNEY SAYS MR. STORY WAS UNABLE TO PROD KAISER PHYSICIANS INTO TREATING HIM AS A HIGH RISK CANCER PATIENT IN EARLY NINETEEN NINETY THE LAWYER SAYS HE WAS DIAGNOSED WITH STAGE THREE COLON CANCER SAYS ANOTHER MALPRACTICE ATTORNEY I GET FIFTEEN OR TWENTY CALLS A YEAR FROM PEOPLE REGARDING LATE DIAGNOSIS FOR CANCER AT KAISER WHY MIGHT A DOCTOR WITHHOLD TREATMENT THAT COULD BENEFIT THE PATIENT KAISER MEDICAL GROUPS ARE EXPECTED TO HIT CERTAIN BUDGETARY TARGETS DRUMMED IN DURING A TWO OR THREE YEAR PROBATION PERIOD GROUPS THAT STAY BENEATH THEIR ESTABLISHED CEILING ARE REWARDED WITH AN END YEAR BONUS AMOUNTING TO THREE PERCENT OR FOUR PERCENT OF ANNUAL SALARY KNOWN IN MANAGED CARE PARLANCE AS AT RISK COMPENSATION THOUGH FRANK MURRAY BOARD CHAIRMAN AND MEDICAL DIRECTOR OF KAISER'S SOUTHERN CALIFORNIA PLAN CLAIMS THE FEW EXTRA PERCENTAGE POINTS DO NOT CONSTITUTE A MEANINGFUL INCENTIVE TO ANY PARTICULAR BEHAVIORS MS. NISSENBERG FINDS IT FRIGHTENING TO THINK YOUR DOCTOR'S COURSE OF TREATMENT MIGHT BE BASED ON HOW MUCH MONEY HE'LL HAVE LEFT OVER FOR HIMSELF AT YEAR'S END SAYS WALTER LAWRENCE OF THE AMERICAN CANCER SOCIETY QUOTE IT'S NOT NECESSARILY THAT THESE ARE BAD DOCTORS OR BAD PEOPLE IT'S THE CULTURE IN WHICH THEY OPERATE A CULTURE IN WHICH EVERY DECISION IS ASSESSED IN TERMS OF STATISTICS AND PROBABILITIES AND DOLLARS AND THEREIN LIES THE CRITICAL FALLACY IN THIS WHOLE ATTEMPT TO APPLY TO MEDICINE THE LESSONS OF TQM AND ADVANCED INDUSTRIAL MANAGEMENT THEORY ONE DOES NOT WEIGH DECISIONS BEARING DIRECTLY UPON LIFE AND DEATH AS ONE WOULD SAY A DECISION ON WHETHER TO INVEST IN A GIVEN COMMODITY WE CANNOT IN GOOD CONSCIENCE REDUCE THE PRACTICE OF MEDICINE TO THE EQUIVALENT OF A LAS VEGAS ODDS BOARD MR. SALERNO WHO LIVES IN SAN DIEGO WRITES FREQUENTLY ABOUT MEDICAL ISSUES HIGH PLAINS CORPORATION EXPECTS TO REPORT THAT NET INCOME FELL ABOUT EIGHTEEN PERCENT IN ITS FISCAL SECOND QUARTER ENDED DECEMBER THIRTY FIRST SAID RAY G. FRIEND CHIEF FINANCIAL OFFICER MR. FRIEND SAID HE AGREED WITH ANALYSTS' ESTIMATES THAT THE WICHITA KANSAS ETHANOL PRODUCER'S NET WOULD BE IN THE RANGE OF ONE POINT SEVEN MILLION DOLLARS OR TWENTY FIVE CENTS TO THIRTY CENTS A SHARE COMPARED WITH ONE POINT SEVEN MILLION DOLLARS OR FIFTY SEVEN CENTS A SHARE A YEAR EARLIER COMMON SHARES OUTSTANDING ROSE TO FIVE MILLION FROM THREE MILLION A YEAR EARLIER MR. FRIEND BLAMED THE LOWER EARNINGS ON HIGHER GRAIN PRICES WHICH RAISED THE COST OF PRODUCING ETHANOL ANOTHER FACTOR WAS THE DROP IN ETHANOL PRICES CAUSED BY LOWER WHOLESALE GASOLINE PRICES HE SAID HIGH PLAIN EXPECTS TO REPORT THAT SALES ROSE SIXTEEN PERCENT TO NINE POINT SIX MILLION DOLLARS FROM EIGHT POINT THREE MILLION DOLLARS FOR THE FISCAL FIRST HALF MR. FRIEND EXPECTS TO REPORT THAT NET FELL SEVENTEEN PERCENT TO TWO MILLION DOLLARS OR THIRTY EIGHT CENTS A SHARE FROM TWO POINT FOUR MILLION DOLLARS OR EIGHTY TWO CENTS A SHARE A YEAR EARLIER ON SALES OF SEVENTEEN POINT EIGHT MILLION DOLLARS UP ABOUT ELEVEN PERCENT FROM SIXTEEN MILLION DOLLARS U. S. BANCORP SAID FOURTH QUARTER NET INCOME ROSE ONE POINT FIVE PERCENT TO SIXTY SEVEN POINT ONE MILLION DOLLARS BUOYED BY HIGH PROFIT MARGINS AND MINIMAL CREDIT LOSSES THE EARNINGS COMPARED WITH A YEAR EARLIER SIXTY SIX POINT ONE MILLION DOLLARS REPRESENT A ONE POINT TWO SIX PERCENT RETURN ON TOTAL ASSETS A HIGH LEVEL OF PROFITABILITY BY INDUSTRY STANDARDS THE PORTLAND OREGON BANK HAD YEAR END ASSETS OF TWENTY ONE POINT FOUR BILLION DOLLARS PER SHARE EARNINGS FOR THE QUARTER WERE SIXTY FOUR CENTS UP FROM A YEAR EARLIER SIXTY THREE CENTS FOR NINETEEN NINETY THREE THE COMPANY EARNED TWO HUNDRED FIFTY SEVEN POINT NINE MILLION DOLLARS OR TWO DOLLARS AND FORTY SEVEN CENTS A SHARE UP FROM THE PREVIOUS YEAR'S ONE HUNDRED FORTY EIGHT POINT TWO MILLION DOLLARS OR ONE DOLLAR AND FORTY FIVE CENTS A SHARE AN ACCOUNTING CHANGE REDUCED NINETEEN NINETY TWO NET INCOME BY FIFTY NINE POINT NINE MILLION DOLLARS OR SIXTY CENTS A SHARE RELUCTANT TO ROCK THE BOAT ON A SLOW TRADING DAY INVESTORS CONTINUED THEIR BUYING TREND PUSHING SMALL COMPANY STOCKS SLIGHTLY HIGHER TO ANOTHER RECORD THE RUSSELL TWO THOUSAND INDEX WHICH TRACKS THE PERFORMANCE OF SMALL CAPITALIZATION ISSUES TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES GAINED ZERO POINT SIX TWO POINT OR ZERO POINT TWO FOUR PERCENT TO END AT TWO HUNDRED SIXTY ONE POINT EIGHT NINE ITS FOURTH CONSECUTIVE RECORD THE NASDAQ COMPOSITE INDEX JUST MISSED ITS THIRD STRAIGHT CLOSING HIGH SLIPPING ZERO POINT ONE THREE POINT TO SEVEN HUNDRED NINETY TWO POINT ONE EIGHT HOWEVER IT TRADED IN RECORD TERRITORY JUST BEFORE THE CLOSE TRADERS SAID THE COMBINATION OF THE MARTIN LUTHER KING JUNIOR HOLIDAY THE EAST COAST STORM AND A CLOSED BOND MARKET CAUSED MANY MARKET PLAYERS TO STAY HOME OR REFRAIN FROM MAKING LARGE MOVES IN ADDITION THE CALIFORNIA EARTHQUAKE SHUT DOWN SOME LOS ANGELES BROKERAGE OPERATIONS AND DAMPED SPIRIT AT OTHERS ACROSS THE COUNTRY SOME IMMEDIATE BENEFICIARIES OF THE CALIFORNIA EARTHQUAKE APPEAR TO BE CONSTRUCTION ISSUES AS INVESTORS PREDICTED THAT THE GROUP COULD PROFIT WHEN CLEANUP OF THE DISASTER BEGINS AMONG THOSE MOVING HIGHER ON THE NEW YORK STOCK EXCHANGE WERE KASLER HOLDING A HIGHLAND CALIFORNIA BUILDER OF PUBLIC WORKS UP ONE AND SEVEN EIGHTHS TO TEN AND CALMAT A LOS ANGELES PRODUCER OF CONSTRUCTION MATERIALS UP TWO AND THREE EIGHTHS TO TWENTY FOUR AND ONE EIGHTH GRANITE CONSTRUCTION A WATSONVILLE CALIFORNIA CONTRACTOR FOR PUBLIC INFRASTRUCTURE PROJECTS ROSE TWO AND ONE HALF TO TWENTY FOUR AND THREE QUARTERS NASDAQ DECLINERS RAN AHEAD OF ADVANCERS ONE THOUSAND FOUR HUNDRED SIXTY TWO TO ONE THOUSAND FOUR HUNDRED TWENTY FOUR ON NASDAQ NATIONAL MARKET VOLUME OF TWO HUNDRED THREE MILLION SHARES DOWN FROM FRIDAY'S TWO HUNDRED FIFTY FOUR POINT TWO MILLION OVERALL VOLUME SLIPPED TO TWO HUNDRED FORTY THREE POINT FIVE MILLION SHARES DOWN FROM TWO HUNDRED NINETY NINE POINT SEVEN MILLION ON FRIDAY BLOCKBUSTER ENTERTAINMENT CORPORATION FORT LAUDERDALE FLORIDA SAID IT ACQUIRED A NINETEEN POINT NINE PERCENT STAKE IN VIRGIN INTERACTIVE ENTERTAINMENT IN EXCHANGE FOR BLOCKBUSTER STOCK VALUED AT ROUGHLY THIRTY MILLION DOLLARS THE ALLIANCE WITH VIRGIN WHICH DEVELOPS AND PUBLISHES VIDEO GAME SOFTWARE COMPATIBLE WITH NINTENDO AND SEGA SYSTEMS WILL GIVE BLOCKBUSTER ANOTHER FOOTHOLD IN THE RAPIDLY GROWING WORLD OF VIDEO GAMES ADDITIONALLY THE MOVE FURTHER CEMENTS AN EXISTING ALLIANCE BETWEEN BLOCKBUSTER AND VIRGIN WHICH TOGETHER HAVE BEEN DEVELOPING SO CALLED MUSIC MEGASTORES OVERSEAS AND IN THE U. S. ANALYSTS AND INDUSTRY EXECUTIVES SAID CLOSELY HELD VIRGIN INTERACTIVE WHICH IS BASED IN THE UNITED KINGDOM AND CONTROLLED BY BRITISH FINANCIER RICHARD BRANSON IS PREPARING TO MAKE AN INITIAL PUBLIC OFFERING IN THE U. S. EARLY THIS YEAR IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BLOCKBUSTER CLOSED AT TWENTY EIGHT POINT ONE TWO FIVE DOLLARS DOWN SIXTY TWO POINT FIVE CENTS WOODWARD AND LOTHROP INCORPORATED THE WASHINGTON D. C. DEPARTMENT STORE CHAIN OWNED BY REAL ESTATE MAGNATE A. ALFRED TAUBMAN FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER ELEVEN OF THE FEDERAL BANKRUPTCY CODE SADDLED WITH MORE THAN FIVE HUNDRED MILLION DOLLARS IN DEBT STEMMING FROM MR. TAUBMAN'S PURCHASE OF THE COMPANY AND THE LATER ACQUISITION OF JOHN WANAMAKER STORES THE PRIVATELY HELD CHAIN KNOWN AS WOODIES TO ITS PATRONS AND SUPPLIERS HAD STRUGGLED WITH THE THREAT OF BANKRUPTCY FOR SEVERAL YEARS IN INCREASINGLY COMPETITIVE MARKETS BUT IN RECENT MONTHS WOODWARD AND LOTHROP WAS HAMPERED BY INCREASINGLY NERVOUS SUPPLIERS THAT WEREN'T DELIVERING FULL SHIPMENTS AND WERE DEMANDING PREPAYMENT FOR GOODS SHIPPED IF THEY SHIPPED AT ALL THE ONE HUNDRED THIRTEEN YEAR OLD RETAILER FILED YESTERDAY IN BANKRUPTCY COURT IN NEW YORK ALONG WITH ITS PARENT COMPANY WOODWARD AND LOTHROP HOLDINGS INCORPORATED IN ITS FILING THE RETAILER REPORTED TOTAL ASSETS OF SIX HUNDRED EIGHT MILLION DOLLARS AND TOTAL LIABILITIES OF SIX HUNDRED FIFTY NINE MILLION DOLLARS UNDER CHAPTER ELEVEN A COMPANY IS PROTECTED FROM ITS CREDITORS WHILE IT DEVISES A PLAN TO REPAY DEBT IT CONTINUES TO OPERATE WOODWARD AND LOTHROP OPERATES SIXTEEN DEPARTMENT STORES IN THE WASHINGTON AND BALTIMORE AREAS AND OWNS JOHN WANAMAKER WHICH OPERATES FIFTEEN DEPARTMENT STORES IN THE PHILADELPHIA AREA WOODWARD AND LOTHROP ALSO SAID ARNOLD H. ARONSON ITS CHAIRMAN AND CHIEF EXECUTIVE SINCE NINETEEN EIGHTY NINE STEPPED DOWN FRIDAY HE WAS SUCCEEDED BY ROBERT B. MANG FORTY EIGHT YEARS OLD WHO WAS PRESIDENT AND CHIEF OPERATING OFFICER MR. ARONSON YESTERDAY SAID HE HAD ATTEMPTED A MANAGEMENT LED BUYOUT OF THE COMPANY IN RECENT MONTHS WITH UNNAMED QUOTE FINANCIAL PARTNERS QUOTE BUT THAT ATTEMPT WAS UNSUCCESSFUL AT REACHING AN AGREEMENT MR. ARONSON A FIFTY NINE YEAR OLD INDUSTRY VETERAN WHO HAS HEADED OTHER RETAIL CHAINS HE WAS FORMER CHIEF EXECUTIVE OF THE BULLOCK'S AND SAKS FIFTH AVENUE CHAINS SAID IT WAS HIS PERSONAL DECISION NOT TO RUN THE COMPANY IF IT FILED FOR BANKRUPTCY LAW PROTECTION THOUGH INDUSTRY ANALYSTS AND CONSULTANTS HAD SPECULATED WOODWARD AND LOTHROP WOULD MAKE A BANKRUPTCY FILING THE CHAIN AS LATE AS FRIDAY HAD SAID THAT BANKRUPTCY WAS JUST ONE OF SEVERAL OPTIONS FOR A HIGHLY LEVERAGED CHAIN THAT HAD BUILT UP BURDENSOME DEBT FROM PAST ACQUISITION COSTS MR. TAUBMAN THE BLOOMFIELD HILLS MICHIGAN BASED REAL ESTATE DEVELOPER IS THE CHAIN'S LARGEST UNSECURED CREDITOR IN BANKRUPTCY THE COMPANY SAID MR. TAUBMAN HAS LOANED THE COMPANY ONE HUNDRED FIFTY EIGHT MILLION DOLLARS OVER SEVERAL YEARS IN THE FORM OF CREDIT LINES AND HAS PARTICIPATED IN BANK CREDIT LINES OF FIFTY FIVE MILLION DOLLARS WOODWARD AND LOTHROP'S DEBT BEGAN BUILDING WHEN MR. TAUBMAN ACQUIRED WOODWARD AND LOTHROP IN NINETEEN EIGHTY FOUR FOR TWO HUNDRED THIRTY MILLION DOLLARS OR SIXTY DOLLARS AND FIFTY CENTS A SHARE TWO YEARS LATER MR. TAUBMAN THROUGH WOODIES ACQUIRED JOHN WANAMAKER FOR ONE HUNDRED EIGHTY THREE MILLION DOLLARS FROM CARTER HAWLEY HALE IN NINETEEN EIGHTY EIGHT THERE WERE PUBLISHED REPORTS MR. TAUBMAN HAD PUT WOODIES UP FOR SALE IN AN ATTEMPT TO REJUVENATE THE CHAIN MR. TAUBMAN IN NINETEEN EIGHTY NINE INSTALLED NEW MANAGEMENT PICKING MR. ARONSON TO HEAD THE CHAIN AND STARTED A CAPITAL EXPENDITURE PROGRAM FOR UPGRADING STORES SPENDING TWO HUNDRED MILLION DOLLARS OVER FIVE YEARS ADDING TO THE COMPANY'S DEBT WOODWARD AND LOTHROP IS OWNED BY TAUBMAN INVESTMENT COMPANY A PRIVATE INVESTMENT COMPANY OWNED BY MR. TAUBMAN BUT ISN'T CONNECTED TO HIS TAUBMAN CENTERS INCORPORATED WHICH OWNS INTERESTS IN REGIONAL SHOPPING MALLS IN A STATEMENT YESTERDAY MR. TAUBMAN SAID THAT AS THE CHAIN'S OPERATIONS IMPROVED IN RECENT YEARS HE HAD HOPED THE COMPANY WOULD HAVE BEEN ABLE TO ATTRACT THE CAPITAL NECESSARY TO RESTRUCTURE ITS DEBT HE SAID HE SUPPORTED MANAGEMENT'S DECISION TO FILE FOR BANKRUPTCY COURT PROTECTION AND ITS PLANS TO EMERGE FROM REORGANIZATION AS SOON AS POSSIBLE MR. TAUBMAN CHAIRMAN OF SOTHEBY'S HOLDINGS INCORPORATED AND OWNER OF OTHER DIVERSE BUSINESSES ADDED THAT THE FILING WILL NOT AFFECT MY PERSONAL AND OTHER BUSINESS INTERESTS ALL OF WHICH ARE DOING WELL COMPANY EXECUTIVES DESCRIBE THE CHAIN'S OPERATIONS AS HEALTHY ITS STORES PROFITABLE AND THE COMPANY PRODUCING A POSITIVE CASH FLOW BEFORE INTEREST PAYMENTS FOR THE FISCAL YEAR ENDED IN JANUARY NINETEEN NINETY THREE WOODWARD AND LOTHROP HAD TOTAL SALES OF EIGHT HUNDRED FIFTY FIVE MILLION DOLLARS AND EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION OF THIRTY EIGHT MILLION DOLLARS A THIRTY SEVEN PERCENT INCREASE FROM A YEAR EARLIER MANAGEMENT EXPECTS SALES AND EARNINGS IN THE CURRENT FISCAL YEAR TO BE ABOUT EVEN WITH A YEAR EARLIER WOODWARD'S MR. MANG NOTED THAT THE CHAIN WAS STUCK WITH YEARLY INTEREST EXPENSES OF MORE THAN FIFTY MILLION DOLLARS MR. MANG SAID THE HIGH INTEREST PAYMENTS AND DIFFICULTY GETTING FULL SHIPMENTS FROM SKITTISH SUPPLIERS PUT US IN A VERY DIFFICULT POSITION COMPETITIVELY THE COMPANY SAID THE BANKRUPTCY FILING WILL ALLOW IT TO RESTRUCTURE ITS DEBT THE MERCHANT SAID BUSINESS WILL CONTINUE AS USUAL AND THAT NO STORES WOULD BE CLOSED NOR EMPLOYEES LAID OFF BECAUSE OF THE FILING SEVERAL SUPPLIERS TOLD THE COMPANY YESTERDAY THAT THEY WILL MAKE SHIPMENTS TO THE CHAIN WOODWARD AND LOTHROP SAID IT RECEIVED COMMITMENTS FOR THREE HUNDRED MILLION DOLLARS IN DEBTOR IN POSSESSION FINANCING FROM NEW YORK BASED C. I. T. GROUP AN ASSET BASED LENDER DIP FINANCING WHICH RETAILERS TYPICALLY OBTAIN WHEN OPERATING UNDER BANKRUPTCY LAW PROTECTION SHOULD ALLOW THE CHAIN TO GUARANTEE THE PAYMENT FOR SHIPMENT OF GOODS C. R. BARD INCORPORATED WHICH IS STRUGGLING TO RECOVER FROM SCANDAL OVER ITS HEART SURGERY INSTRUMENTS SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET TWO NEW HEART CATHETERS IN THE U. S. THE MURRAY HILL N. J. MEDICAL DEVICE MAKER RECEIVED CLEARANCE TO MARKET ITS QUOTE AGIL QUOTE AND QUOTE SILK QUOTE BALLOON ANGIOPLASTY CATHETERS BOTH OF WHICH HAD BEEN PENDING BEFORE THE F. D. A. FOR MORE THAN A YEAR THE UPGRADED CATHETERS SHOULD HELP BARD SUSTAIN ITS ESTIMATED SIX PERCENT TO SEVEN PERCENT SHARE OF THE BALLOON ANGIOPLASTY MARKET BEAR STEARNS AND COMPANY ANALYST FREDERICK A. WISE SAID A PIONEER OF BALLOON ANGIOPLASTY BARD HAD NEARLY FORTY PERCENT OF THE MARKET IN NINETEEN EIGHTY NINE BEFORE REGULATORY AND OTHER PROBLEMS LED THE COMPANY TO WITHDRAW PRODUCTS BARD ALSO SAID IT BELIEVES IT IS CLOSE TO RESOLVING REMAINING ADMINISTRATIVE SANCTIONS THAT MAY BE IMPOSED BY THE F. D. A. THE COMPANY LAST FALL REACHED A SETTLEMENT WITH THE F. D. A. AND JUSTICE DEPARTMENT AGREEING TO PAY SIXTY ONE MILLION DOLLARS IN FINES RELATED TO ITS SALE OF DEFECTIVE HEART CATHETERS BARD'S SHARES ROSE ONE DOLLAR AND FIFTY CENTS TO THIRTY DOLLARS IN LATE NEW YORK STOCK EXCHANGE TRADING ON FOUR TIMES AVERAGE VOLUME ON THE BORDER CAFES INCORPORATED SAID IT WILL REPORT A TWO POINT TWO MILLION DOLLAR CHARGE FOR THE FISCAL FOURTH QUARTER TO SETTLE A CLAIM RELATING TO A PLANE CRASH LAST YEAR THAT KILLED THE COMPANY'S CHIEF EXECUTIVE THE RESTAURANT OPERATOR SAID THE CLAIM FILED BY A WOMAN INJURED IN THE ACCIDENT WILL BE PAID OVER SIX YEARS THE MARCH CRASH KILLED MICHAEL FIORI THEN PRESIDENT AND CHIEF EXECUTIVE AND HIS SON WILLIAM THE PLANE'S PILOT AND INJURED THREE OTHER PASSENGERS THE INJURED INCLUDED JULIE SIMPSON WIFE OF COMPANY HUMAN RESOURCE DIRECTOR HANK SIMPSON MRS. SIMPSON SUFFERED BROKEN RIBS AND VERTEBRAE AND LIVER INJURIES AND SUBSEQUENTLY FILED A CLAIM FOR DAMAGES STEPHEN D. FENSTERMACHER CURRENT CHIEF EXECUTIVE WHO ALSO WAS INJURED IN THE ACCIDENT SAID THE SETTLEMENT ENDS ALL CLAIMS RELATING TO THE CRASH ON THE BORDER ALSO EXPECTS TO REPORT AN OPERATING LOSS FOR THE FOURTH QUARTER ENDED JANUARY THIRD FOR THE YEAR EARLIER QUARTER THE COMPANY HAD NET INCOME OF NINETY EIGHT THOUSAND DOLLARS OR THREE CENTS A SHARE ON REVENUE OF SIX POINT SIX MILLION DOLLARS LIFE SAVERS HAD DUG ITSELF INTO A HOLE THE VENERABLE CANDY SPENT YEARS SELLING ITSELF WITH WARM FUZZY COMMERCIALS THAT EMPHASIZED NOSTALGIA AND THE GOOD FEELING OF POPPING A LIFE SAVERS INTO YOUR MOUTH THE ONE INGREDIENT ALWAYS OMITTED HOW THE SUGARED CANDY TASTED MEANWHILE RIVALS MENTOS AND STAR BURST HAVE CONTINUOUSLY STRESSED TASTE IN THEIR COMMERCIALS NOW NEW ADS FROM LIFE SAVERS AND ITS AGENCY F. C. B. SLASH LEBER KATZ PARTNERS THE NEW YORK OFFICE OF FOOTE CONE AND BELDING COMMUNICATIONS RESEMBLE LUSH MUSIC VIDEOS AND THE ADS EMPHASIZE ONLY TASTE THE LILTING MUSIC IS SUPPLIED BY THE SOUTH AFRICAN GROUP LADYSMITH BLACK MAMBAZO WHICH BECAME POPULAR IN THE U. S. WITH THE PAUL SIMON ALBUM QUOTE GRACELAND QUOTE LIFE SAVERS SHIFTED ITS MARKETING STRATEGY BECAUSE OF INCREASED COMPETITION ALTHOUGH LIFE SAVERS IS THE NUMBER ONE BRAND IN THE HARD CANDY CATEGORY IT HAS BEEN AROUND FOR MORE THAN EIGHT DECADES THE CANDY SAYS BOB HIRSCH SENIOR EXECUTIVE VICE PRESIDENT AT F. C. B. SLASH LEBER KATZ ISN'T TOP OF MIND FOR CONSUMERS WHEN THEY'RE MAKING A BUYING DECISION IN SUPERMARKETS LIFE SAVERS SALES FELL FOUR POINT FIVE PERCENT TO FORTY TWO POINT ONE MILLION DOLLARS FOR THE FIFTY TWO WEEK PERIOD ENDED SEPTEMBER ELEVENTH ACCORDING TO A. C. NIELSEN WHILE THE ENTIRE HARD CANDY CATEGORY HAD SUPERMARKET SALES OF EIGHTY POINT EIGHT MILLION DOLLARS DOWN FIVE POINT FOUR PERCENT FROM THE YEAR EARLIER PERIOD A NUMBER OF HARD CANDY BRANDS GREW SALES OF MENTOS FOR INSTANCE ROSE SIXTY TWO POINT FOUR PERCENT TO THREE POINT FOUR MILLION DOLLARS IN SUPERMARKETS WE HAVE BEEN SELLING THE LIFE SAVERS MOMENT SAYS MR. HIRSCH WE HAVEN'T COMPETED ON A FLAVOR LEVEL PAST ADS SHOWED FOUR GENERATIONS OF MEN WATCHING A BASEBALL GAME EACH PASSING A ROLL OF LIFE SAVERS THE SLOGAN WAS ISN'T LIFE DELICIOUS NOW MR. HIRSCH SAYS HE WANTS CONSUMERS TO WATCH THE ADS AND TASTE THE FILM HE VERY NEARLY ACCOMPLISHES THAT TASK THERE IS NO AUTHORITATIVE VOICEOVER NO CATCHY SLOGAN IN THE NEW ADS INSTEAD THERE ARE BEAUTIFUL SHOTS OF A WHITE QUOTE PEPOMINT QUOTE LIFE SAVERS ATOP A SNOWY MOUNTAIN IN ONE COMMERCIAL THE CANDY BREAKS LOOSE ROLLS PEACEFULLY DOWN THE MOUNTAIN AND DROPS INTO A RIVER DISSOLVING INTO TINY CHISELED SNOWFLAKES ALL THE WHILE LILTING VOICES SING SO REFRESHING SO COLD SO FULL OF LIFE SAVERS ANOTHER SPOT FOR THE FIVE FLAVORS ROLL SHOWS SUCH IMAGES AS A GREEN LIFE SAVERS PLOPPING INTO A RIVER OF THIN LIME SLICES A RED LIFE SAVERS ROLLING INTO WATER TO BECOME A STEM OF CHERRIES AND SLICES OF PINEAPPLE TURNING INTO YELLOW CANDIES THE PEPOMINT SPOT SCHEDULED TO PREMIERE TONIGHT ON CAPITAL CITIES SLASH A. B. C.'S COACH WILL POP UP LATER THIS WEEK ON MORE SHOWS INCLUDING LATE SHOW WITH DAVID LETTERMAN ON C. B. S. THE FIVE FLAVOR SPOT WILL BE RELEASED LATER IN THE FIRST QUARTER THE CAMPAIGN MARKS THE RETURN OF ADVERTISING FOR LIFE SAVERS' TRADITIONAL FLAVORS WHICH HAVEN'T BEEN ON THE AIR SINCE THE FIRST QUARTER OF NINETEEN NINETY THREE SO CALLED WILD FLAVORS INCLUDING TANGY FRUITS WERE ADVERTISED LAST YEAR ON YOUTH ORIENTED NETWORKS SUCH AS M. T. V. LIFE SAVERS A DIVISION OF R. J. R. NABISCO'S FOOD GROUPS DIVISION IS EXPECTED TO SPEND MORE THAN FIFTEEN MILLION DOLLARS THIS YEAR AT LEAST MATCHING THE AMOUNT SPENT IN NINETEEN NINETY TWO ACCORDING TO COMPETITIVE MEDIA REPORTING WHICH TRACKS AD SPENDING INTERESTINGLY THE NEW STRATEGY FOR LIFE SAVERS IS THE OPPOSITE OF DIET COKE'S NEW CAMPAIGN THE COCA COLA PRODUCT INTRODUCED NEW SPOTS LAST WEEK THAT EMPHASIZED REFRESHMENT A SPECIAL TIME OF THE DAY WHEN A CONSUMER CAN ENJOY A DIET COKE QUOTE MOMENT QUOTE FOR THE PREVIOUS TWELVE YEARS THE SOFT DRINK STRESSED TASTE AND FLAVOR NOW BY CONTRAST LIFE SAVERS IS ESCHEWING MAGIC MOMENTS TO LEAN ON TASTE FOCUS GROUPS SCREENED TWO VERSIONS OF THE PEPOMINT AD WITH THE SAME SONG ONE WITH STRONG MUSIC SUNG BY LADYSMITH BLACK MAMBAZO ANOTHER WITH A NAMELESS BUNCH OF JINGLE SINGERS LADYSMITH'S VARIATION WAS THE SOLID WINNER SAYS TRISH MCHALE BUSINESS DIRECTOR FOR LIFE SAVERS IT TAKES A PRODUCT EVERYONE KNOWS AND GIVES IT MORE REVERENCE AND MAKES IT UPLIFTING MR. HIRSCH SAYS THAT WITH THE NEW CAMPAIGN WE FEEL WE'RE INTRODUCING THE TASTE EXPERIENCE OF LIFE SAVERS TO A WHOLE NEW GENERATION WE DON'T WANT TO BE THOUGHT OF ONLY AS THE CANDY THEIR PARENTS GAVE THEM WHEN THEY WERE GOOD ADDS MS. MCHALE WE'RE DOING A LOT OF THINGS TO WAKE UP AMERICA TO LIFE SAVERS LIFE SAVERS IS ALSO TRYING LINE EXTENSION IT ALREADY PRODUCES GUMMI SAVERS TO COMPETE WITH THE POPULAR GUMMY BEARS SOFT CANDY AS WELL AS BREATH SAVERS TO RIVAL MINTS SUCH AS CERTS AND TIC TAC MOREOVER LIFE SAVERS IS LICENSING ITS NAME TO BE PLACED ON ICE POPS AND IT IS TEAMING WITH ANOTHER R. J. R. NABISCO BRAND ROYAL GELATIN TO TEST MARKET SIX FLAVORS OF LIFE SAVERS GELATIN QUOTE CAN WE BEAT JELL O. QUOTE ASKS MS. MCHALE NO BUT WE CAN EAT INTO THEIR MARKET SHARE NOT ALL OF LIFE SAVERS' EFFORTS HAVE MET SUCCESS IN WHAT MUST HAVE SEEMED A GOOD IDEA AT THE TIME R. J. R. NABISCO DECIDED TO MARKET HOLES MEANT TO BE THE DISCARDED CENTER OF TRADITIONAL LIFE SAVERS ACCORDING TO NIELSEN SALES OF HOLES REGISTERED TWELVE POINT FIVE MILLION DOLLARS IN THE FIFTY TWO WEEK PERIOD ENDED SEPTEMBER ELEVENTH THAT WAS A DROP OF THIRTY TWO POINT SEVEN PERCENT INDICATING THAT THE FLEDGING CANDY MAY BE HEADED FOR WELL A BLACK HOLE WENDY'S INTERNATIONAL IS CRASHING THE OLYMPICS SPONSORSHIP PARTY WITH A NEW SERIES OF ADS FEATURING COMPANY FOUNDER DAVE THOMAS AND IN A CAMEO ROLE THE NINETEEN NINETY TWO OLYMPIC FIGURE SKATING CHAMPION KRISTI YAMAGUCHI THE BURGER CHAIN'S SPONSORSHIP OF OLYMPICS COVERAGE MARKS A SHARP INCREASE IN ITS PRESENCE DURING THE GAMES IN NINETEEN NINETY TWO IF WE HAD ONE OR TWO SPOTS THAT WOULD HAVE BEEN A LOT SAID A WENDY'S SPOKESMAN PREVIOUSLY THE CHAIN SPENT ABOUT FIFTY MILLION DOLLARS A YEAR ON NATIONAL TELEVISION ADVERTISING TOO LITTLE TO BUY A MAJOR BROADCAST SPONSORHIP THE SPOKESMAN SAID THIS YEAR THAT FIGURE INCREASED TO EIGHTY MILLION DOLLARS HE SAID THE SPOTS ARE SET TO START FEBRUARY SIXTH DURING THE C. B. S. NETWORK'S OLYMPICS BROADCAST SOUTHERN COMPANY INCREASED ITS QUARTERLY DIVIDEND TO FIFTY NINE CENTS A SHARE FROM FIFTY SEVEN CENTS AND DECLARED A TWO FOR ONE STOCK SPLIT THE ATLANTA BASED UTILITY ALSO REPORTED THAT FOURTH QUARTER EARNINGS FELL TO ONE HUNDRED THIRTY THREE MILLION DOLLARS OR FORTY ONE CENTS A SHARE FROM ONE HUNDRED FORTY ONE MILLION DOLLARS OR FORTY FIVE CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO ONE POINT NINE FIVE BILLION DOLLARS FROM ONE POINT EIGHT SEVEN BILLION DOLLARS DISCUSSING THE DIVIDEND INCREASE AND THE STOCK SPLIT THE COMPANY NOTED THAT ITS SHARE PRICE HAS MORE THAN DOUBLED IN THE PAST FIVE YEARS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SOUTHERN CLOSED AT FORTY TWO POINT EIGHT SEVEN FIVE DOLLARS A SHARE UP TWELVE POINT FIVE CENTS ON VOLUME OF TWO HUNDRED FIFTY FIVE THOUSAND FIVE HUNDRED SHARES THE INCREASED DIVIDEND IS PAYABLE MARCH FIFTH TO STOCK OF RECORD FEBRUARY SEVENTH THE STOCK SPLIT IS SCHEDULED TO TAKE EFFECT FOR STOCK OF RECORD AT THE CLOSE OF BUSINESS FEBRUARY SEVENTH CURRENTLY SOUTHERN HAS ABOUT THREE HUNDRED TWENTY MILLION COMMON SHARES OUTSTANDING FOR ALL OF NINETEEN NINETY THREE THE COMPANY REPORTED EARNINGS OF ONE BILLION DOLLARS OR THREE DOLLARS AND FOURTEEN CENTS A SHARE COMPARED WITH NINE HUNDRED FIFTY THREE MILLION DOLLARS OR THREE DOLLARS AND TWO CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO EIGHT POINT FOUR NINE BILLION DOLLARS FROM EIGHT POINT OH SEVEN BILLION DOLLARS GRUMMAN CORPORATION WILL CLOSE ABOUT ONE THIRD OF ITS FACTORY SPACE INCLUDING SOME HISTORIC MILITARY AIRCRAFT PLANTS ON NEW YORK'S LONG ISLAND AS PART OF A RESTRUCTURING TO BE UNVEILED TODAY THE RESTRUCTURING IS EXPECTED TO LEAD TO A CHARGE AGAINST NINETEEN NINETY THREE FOURTH QUARTER EARNINGS OF EIGHTY MILLION DOLLARS TO NINETY MILLION DOLLARS CHAIRMAN RENSO CAPORALI SAID IN AN INTERVIEW THE MOVE WHICH WILL ELIMINATE FOUR POINT FIVE MILLION SQUARE FEET OF THE COMPANY'S FIFTEEN MILLION SQUARE FEET OF CAPACITY WILL CENTER ON LITTLE USED FACILTIES WITH THE CLOSINGS MR. CAPORALI SAID GRUMMAN HOPES TO SAVE SIX HUNDRED MILLION DOLLARS OVER THE NEXT THREE YEARS AND REDUCE ITS OVERHEAD COSTS FAILURE TO LOWER OVERHEAD TO FIT WITH THE TIMES WILL QUOTE BRING YOU DOWN QUOTE MR. CAPORALI SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING GRUMMAN CLOSED AT FORTY ONE POINT EIGHT SEVEN FIVE DOLLARS DOWN THIRTY SEVEN POINT FIVE CENTS THE RESTRUCTURING EXPECTED TO BE COMPLETED BY THE END OF NINETEEN NINETY FIVE WILL ELIMINATE ABOUT FIVE HUNDRED JOBS HOWEVER MR. CAPORALI SAID MORE JOBS ARE LIKELY TO BE CUT AS GRUMMAN COPES WITH FUTURE REDUCTIONS IN U. S. MILITARY SPENDING GRUMMAN'S WORK FORCE PEAKED IN NINETEEN EIGHTY SEVEN AT ABOUT THIRTY THREE THOUSAND EMPLOYEES BUT HAS DROPPED SINCE TO ABOUT EIGHTEEN THOUSAND DECLINING DEFENSE SPENDING HAS COST GRUMMAN MUCH OF ITS MILITARY AIRCRAFT BUSINESS INCLUDING THE F. FOURTEEN NAVY FIGHTER WHICH WAS BUILT ON LONG ISLAND THE COMPANY WHICH HAS DEVELOPED AN EXTENSIVE DATA SYSTEMS BUSINESS REMAINS A PLAYER IN THE DEFENSE INDUSTRY WITH BATTLE COORDINATION AND SURVEILLANCE AIRCRAFT SUCH AS JSTARS JOINT SURVEILLANCE TARGET ATTACK RECOGNITION SYSTEM AND THE E. TWO C. HAWKEYE WITH THE RESTRUCTURING BOTH PLANES WILL BE BUILT IN THE FUTURE AT GRUMMAN PLANTS IN FLORIDA AND LOUISIANA FOREMOST AMONG THE IMPENDING PLANT CLOSINGS IS THE SHUTDOWN OF TWO LONG ISLAND FACILITIES A ONE POINT FIVE MILLION SQUARE FOOT PLANT IN CALVERTON AND A DETAIL PARTS FACILITY IN BETHPAGE GRUMMAN WILL KEEP ITS HEADQUARTERS ALONG WITH ITS PRIMARY ENGINEERING AND TECHNICAL STAFF AT BETHPAGE WHERE IT WILL EMPLOY ABOUT EIGHT THOUSAND WORKERS MR. CAPORALI SAID NINETEEN NINETY THREE REVENUE WILL BE DOWN ABOUT TEN PERCENT FROM THREE POINT FOUR NINE BILLION DOLLARS IN NINETEEN NINETY TWO WHEN ASKED ABOUT ANALYSTS' ESTIMATES THAT THE COMPANY WILL POST EARNINGS FROM CONTINUING OPERATIONS OF THREE DOLLARS AND THIRTY FIVE CENTS TO THREE DOLLARS AND FORTY CENTS A SHARE FOR NINETEEN NINETY THREE AND THREE DOLLARS AND FIFTY CENTS TO THREE DOLLARS AND SEVENTY FIVE CENTS A SHARE FOR NINETEEN NINETY FOUR HE SAID DOESN'T EXPECT ANY BIG SURPRISES FOURTH QUARTER AND FULL YEAR RESULTS ARE SCHEDULED TO BE RELEASED NEXT WEEK IN THE FOURTH QUARTER OF NINETEEN NINETY TWO GRUMMAN HAD A NET LOSS OF TWO POINT NINE MILLION DOLLARS OR NINE CENTS A SHARE ON SALES OF NINE HUNDRED THIRTY POINT EIGHT MILLION DOLLARS FOR THE FIRST NINE MONTHS OF NINETEEN NINETY THREE THE COMPANY HAD NET INCOME OF EIGHTY FOUR POINT THREE MILLION DOLLARS OR TWO DOLLARS AND FORTY FIVE CENTS A SHARE ON SALES OF TWO POINT FOUR ONE BILLION DOLLARS VIACOM INCORPORATED IS PREPARING TO RAISE ITS NINE POINT THREE BILLION DOLLAR BID FOR PARAMOUNT COMMUNICATIONS INCORPORATED TO STAY ALIVE IN THE CONTEST WITH Q. V. C. NETWORK INCORPORATED ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE NEW BID COULD COME AS EARLY AS TODAY ACCORDING TO ONE OF THE PEOPLE VIACOM COULD BOOST THE VALUE OF ITS BID BY RAISING THE CASH COMPONENT CURRENTLY AT ONE HUNDRED FIVE DOLLARS A SHARE FOR FIFTY POINT ONE PERCENT OF PARAMOUNT SHARES IT COULD ATTEMPT TO BOLSTER THE VALUE OF SECURITIES BEING OFFERED FOR THE REMAINING FORTY NINE POINT NINE PERCENT OR IT COULD DO A COMBINATION OF BOTH IF VIACOM DOESN'T RAISE ITS BID BY FIVE P. M. FRIDAY Q. V. C. COULD WIN THE CONTEST PROVIDED THAT HOLDERS OF FIFTY POINT ONE PERCENT OF PARAMOUNT STOCK TENDER THEIR STOCK TO Q. V. C.'S BID CURRENTLY VALUED AT TEN POINT ONE BILLION DOLLARS OR ABOUT EIGHTY FOUR DOLLARS AND THIRTY SEVEN CENTS A SHARE IN CONVERSATIONS WITH INVESTORS AND ANALYSTS LAST WEEK VIACOM EXECUTIVES AND ADVISERS HINTED THAT THEY WOULD RETURN WITH A HIGHER BID INDICATING THAT THEY WOULDN'T HAVE GONE TO THE TROUBLE OF PUTTING TOGETHER THE EIGHT POINT FOUR BILLION DOLLAR ACQUISITION OF BLOCKBUSTER ENTERTAINMENT CORPORATION JUST TO WALK AWAY FROM THE PARAMOUNT CONTEST THE BLOCKBUSTER DEAL PROVIDES VIACOM WITH ONE POINT TWO FIVE BILLION DOLLARS IN CASH TO SWEETEN THE CASH PORTION OF ITS BID QUOTE MY BELIEF IS THEY'LL COME BACK WITH A HIGHER BID BY FRIDAY QUOTE SAID ENTERTAINMENT INDUSTRY ANALYST LISBETH BARRON OF S. G. WARBURG AND COMPANY IT WOULD BE SHOCKING IF THEY DIDN'T VIACOM USED A DEVICE CALLED A VARIABLE COMMON RIGHT IN ITS PROPOSED ACQUISITION OF BLOCKBUSTER THAT DEVICE IS SUPPOSED TO PROVIDE EXTRA COMPENSATION TO BLOCKBUSTER HOLDERS IN THE EVENT OF A DECLINE IN VIACOM SHARES SOME TRADERS HAVE SPECULATED THAT VIACOM COULD OFFER SOMETHING SIMILAR TO PARAMOUNT HOLDERS Q. V. C. SHARES ROSE EIGHTY SEVEN POINT FIVE CENTS TO FORTY THREE DOLLARS AND FIFTY CENTS ON THE NASDAQ STOCK MARKET YESTERDAY AMID CONTINUED SPECULATION THAT VIACOM WOULD COME BACK WITH A HIGHER OFFER VIACOM CLASS B. NONVOTING SHARES FELL THIRTY SEVEN POINT FIVE CENTS TO THIRTY NINE POINT ONE TWO FIVE DOLLARS YESTERDAY ON THE AMERICAN STOCK EXCHANGE EACH BIDDER'S STOCK TENDS TO RISE IF IT APPEARS THAT IT WILL LOSE THE CONTEST AND TENDS TO FALL IF IT APPEARS THAT IT WILL WIN Q. V. C.'S STOCK HAS RISEN STEADILY FROM THIRTY NINE DOLLARS AND TWENTY FIVE CENTS ON JANUARY TENTH AFTER VIACOM MADE A LOWER THAN EXPECTED BID FOR PARAMOUNT MARK DICKSTEIN A STOCK TRADER WHO OWNS PARAMOUNT SHARES SAID I EXPECT VIACOM TO TRY TO GIVE Q. V. C. A FALSE SENSE OF SECURITY BY BIDDING JUST ENOUGH TO KEEP THE PROCESS ALIVE AND THEN COMING BACK WITH A MUCH HIGHER BID ON THE FINAL DEADLINE OF FEBRUARY FIRST MS. BARRON NOTES THAT THE ACQUISITION OF BLOCKBUSTER WITHOUT THE INCURRENCE OF EXTRA DEBT GIVES VIACOM MORE FLEXIBILITY TO RAISE ITS PARAMOUNT BID WITHOUT STRETCHING ITS BALANCE SHEET PAST THE DANGER POINT MS. BARRON ESTIMATES THAT IF BOTH BIDDERS RAISED THEIR DEBT TO THE POINT WHERE CASH FLOW WOULD COVER INTEREST PAYMENTS TWO TIMES OVER VIACOM COULD OUTBID Q. V. C. BY NINE DOLLARS A PARAMOUNT SHARE OR ONE POINT ONE BILLION DOLLARS BUT SHE NOTES THAT Q. V. C. COULD STRENGTHEN ITS OWN BALANCE SHEET BY OBTAINING MORE CASH FROM PARTNER BELLSOUTH CORPORATION PARAMOUNT STOCK ENDED AT SEVENTY EIGHT DOLLARS AND SEVENTY FIVE CENTS UP TWENTY FIVE CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE VIACOM KEPT THE FOUR MONTH OLD BIDDING WAR ALIVE JANUARY SEVENTH BY ANNOUNCING THE BLOCKBUSTER MERGER AND RESTRUCTURING ITS OFFER FOR PARAMOUNT TO INCLUDE MORE CASH WITHOUT CHANGING THE OVERALL VALUE BUT THAT CHANGE CAME ONLY HOURS BEFORE THE PREVIOUS DEADLINE CONFUSING AND ANGERING TRADERS WHO DIDN'T IMMEDIATELY REALIZE THAT VIACOM HAD REDUCED THE VALUE OF SECURITIES BEING OFFERED FOR FORTY NINE POINT NINE PERCENT OF PARAMOUNT IF VIACOM MAKES A HIGHER BID TODAY THAT COULD BE AN EFFORT TO MAKE ITS TERMS KNOWN WELL IN ADVANCE OF THE FRIDAY DEADLINE PARAMOUNT HAS SET FEBRUARY FIRST AS ITS DEADLINE FOR BOTH BIDDERS TO SUBMIT THEIR HIGHEST OFFERS RAW STEEL PRODUCTION BY THE NATION'S MILLS DECREASED ZERO POINT ONE PERCENT LAST WEEK TO ONE MILLION EIGHT HUNDRED NINETY TWO THOUSAND TONS FROM ONE MILLION EIGHT HUNDRED NINETY FOUR THOUSAND TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE SEVEN POINT TWO PERCENT FROM THE ONE MILLION SEVEN HUNDRED SIXTY FIVE THOUSAND TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED NINETY ONE POINT NINE PERCENT OF ITS CAPABILITY LAST WEEK COMPARED WITH NINETY TWO PERCENT THE PREVIOUS WEEK AND EIGHTY THREE POINT FIVE PERCENT A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK RIOTS WILDFIRES MUDSLIDES NOW A DEADLY EARTHQUAKE HOW MUCH BAD LUCK CAN LOS ANGELES AND ITS BATTERED ECONOMY STAND THIS CITY AND ITS SUBURBS WERE SENT REELING AGAIN ON MONDAY WHEN A PREDAWN EARTHQUAKE SHOOK DOWN FREEWAYS DWELLINGS AND COMMERCIAL BUILDINGS KILLING MORE THAN TWO DOZEN AND PLUNGING MUCH OF THE CITY INTO FEAR AND DARKNESS DESPITE THE DEATHS AND THOUGH DAMAGE IS EXPECTED TO RUN INTO THE HUNDREDS OF MILLIONS OF DOLLARS EARTHQUAKE EXPERTS SAID THE REGION LIKE SAN FRANCISCO IN NINETEEN EIGHTY NINE CHEATED A GRIMMER FATE BECAUSE OF THE QUAKE'S TIMING THE TEMBLOR THE MOST POWERFUL TO STRIKE LOS ANGELES THIS CENTURY AT SIX POINT SIX ON THE RICHTER SCALE CAME AT FOUR THIRTY ONE A. M. ON A HOLIDAY WHEN FREEWAYS SHOPPING CENTERS AND MOST OFFICES WERE VIRTUALLY DESERTED QUOTE WE ARE EXTREMELY GRATEFUL THAT THIS DID NOT OCCUR LATER IN THE DAY QUOTE SAID RITA WALTERS A MEMBER OF THE CITY COUNCIL THE EPICENTER WAS SIXTEEN MILES NORTHWEST OF DOWNTOWN LOS ANGELES STILL FOR MILLIONS OF ANGELENOS WHO SURVIVED UNSCATHED THE MINUTE OF SHAKING AND RUMBLING WAS AN EPISODE OF FEAR FOR SOME RAW TERROR THAT FEW WILL FORGET SAID TONI MOSTON A STUDIO CITY WOMAN WHO LEAPT TO SAFETY FROM THE BALCONY OF HER APARTMENT AS IT COLLAPSED I THOUGHT THIS WAS THE BIG ONE FOR SURE EARTHQUAKE SCIENTISTS HAVE LONG PREDICTED THAT AN EARTHQUAKE OF EIGHT POINT THREE OR BETTER THE MAGNITUDE OF THE NINETEEN OH SIX SAN FRANCISCO QUAKE WILL STRIKE THE REGION IN THE NEXT DECADES THE QUAKE COMES ATOP A DISCOURAGING AND COSTLY STRING OF DISASTERS TO BEFALL THE LOS ANGELES REGION IN RECENT YEARS ITS ECONOMY NOSE DIVED INTO RECESSION IN NINETEEN NINETY A FALL EXACERBATED LATER BY A COLLAPSE IN THE REGION'S IMPORTANT DEFENSE SECTOR WHICH HAS SHED ALMOST FIFTY THOUSAND JOBS IN THREE YEARS THEN IN NINETEEN NINETY TWO CAME THE LOS ANGELES RIOTS WHICH CAUSED AN ESTIMATED SEVEN HUNDRED SEVENTY FIVE MILLION DOLLARS IN INSURED LOSSES ATOP THAT WINDSWEPT BRUSHFIRES ROARED THROUGH SOUTHERN CALIFORNIA LAST FALL CAUSING AN ESTIMATED NINE HUNDRED SIXTY MILLION DOLLARS IN INSURED LOSSES FOLLOWED BY MUDSLIDES THE NINETEEN EIGHTY NINE SAN FRANCISCO EARTHQUAKE BY COMPARISON CAUSED ABOUT SEVEN BILLION DOLLARS IN DAMAGE ABOUT NINE HUNDRED FIFTY MILLION DOLLARS OF IT INSURED STILL ECONOMISTS WHILE NOT DISMISSING SHORT TERM NEGATIVE EFFECTS TO THE REGION'S ECONOMY SAY THE QUAKE'S REPERCUSSIONS SHOULDN'T BE CRIPPLING OR LONG TERM THE IMPACT OF THIS WILL BE SMALLER THAN PEOPLE EXPECT SAID LARRY KIMBELL DIRECTOR OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES BUSINESS FORECASTING PROJECT DOWN THE ROAD ECONOMISTS WILL NEED A FINE TOOTH COMB TO SEE ANYTHING HE CONTENDED THE SEVERITY OF NEAR TERM EFFECTS WILL DEPEND A LOT ON HOW QUICKLY POWER AND DISRUPTED TRANSPORTATION SYSTEMS ARE RESTORED BY SOME ESTIMATES AS MANY AS ONE POINT THREE MILLION PEOPLE WERE WITHOUT POWER SHORTLY AFTER THE QUAKE WHILE WATER SERVICE WAS DISRUPTED TO SIX HUNDRED THOUSAND CITY OFFICIALS WERE OPTIMISTIC THAT MOST OF THE WATER AND POWER SERVICE COULD BE RESTORED WITHIN A DAY OR TWO BUT ROADS ARE A DIFFERENT MATTER INTERSTATE HIGHWAY TEN THE WORLD'S BUSIEST FREEWAY COLLAPSED IN TWO PLACES WHILE INTERSTATE FIVE CRUMBLED IN ONE PLACE IN ADDITION AT LEAST A DOZEN OTHER SECTIONS OF FREEWAY OR MAJOR HIGHWAYS ALSO SUFFERED DAMAGE SOME OF IT SERIOUS THOUGH TEMPORARY DETOURS MAY ALLEVIATE SOME TRAFFIC CONGESTION MOST PEOPLE ARE GIRDING FOR AN EXTENDED NIGHTMARE OF GRIDLOCK IN A CITY WITH ONLY LIMITED PUBLIC TRANSIT FACILITIES CALIFORNIA HIGHWAY ENGINEERS SAID MERELY SURVEYING AND DESIGNING REPAIRS COULD TAKE WEEKS AND ACTUAL CONSTRUCTION MONTHS LONGER AND AS STRONG AFTERSHOCKS CONTINUED THROUGH THE AFTERNOON STATE TRANSPORTATION OFFICIALS ESTIMATED THAT IT COULD TAKE WEEKS JUST TO CLEAN UP THE DEBRIS ONE OF THE AFTERSHOCKS WAS MEASURED AT FIVE POINT FIVE ON THE RICHTER SCALE AND EMERGENCY OFFICIALS WORRIED ABOUT POSSIBLE LANDSLIDES AND FURTHER STRUCTURAL DAMAGE TO BUILDINGS OR ROADS INDEED SAN FRANCISCO'S FREEWAY SYSTEM HAS YET TO FULLY RECOVER FROM THE SEVEN POINT ONE RATED LOMA PRIETA QUAKE IN NINETEEN EIGHTY NINE THAT QUAKE KNOCKED OUT A SECTION OF THE BAY BRIDGE AND DESTROYED MILES OF ELEVATED FREEWAY AND NUMEROUS EXIT AND ENTRY RAMPS REPAIR COSTS ARE ESTIMATED AT ONE POINT THREE BILLION DOLLARS THUS IF HIGHWAY TEN IS SIGNIFICANTLY DAMAGED AND CLOSED FOR A LONG TIME I WOULD SEE THAT AS A BIG PROBLEM SAYS DAVID HENSLEY AN ANALYST SPECIALIZING IN REGIONAL ECONOMIES FOR SALOMON BROTHERS IT WOULD BE DISRUPTIVE FOR TRUCKING AND FOR PEOPLE TO GET TO WORK AND HOWEVER SOON TRANSPORTATION LINKS AND POWER ARE RESTORED THE QUAKE WILL BE ANOTHER NEGATIVE FOR THE REGION TO OVERCOME ECONOMISTS ADD QUOTE THIS IS CLEARLY BAD FOR TOURISM HOTEL OCCUPANCY RATES IN SAN FRANCISCO'S HOTELS DID NOT COME BACK AFTER ITS QUAKE SAID MR. HENSLEY QUAKES ALSO TEND TO GIVE THE PROPERTY MARKET AND BUSINESSES IN GENERAL THE JITTERS IF WE ARE WAITING FOR A BIGGER ONE THIS ONE IS BIG ENOUGH FOR ME SAID LARRY SOLTERS OWNER OF SCOOP MARKETING A PUBLIC RELATIONS CONCERN IF I COULD TAKE MY BUSINESS ELSEWHERE I WOULD SERIOUSLY CONSIDER MOVING WITH SCATTERED LOOTING BEING REPORTED IN SOME HARD HIT AREAS AND IN THE UNDAMAGED CITY CENTER GOVERNOR PETE WILSON CALLED UP SOME MEMBERS OF THE NATIONAL GUARD TO HELP CITY OFFICIALS IMPOSE A DUSK TO DAWN CURFEW BY NIGHTFALL ABOUT HALF A DOZEN LOOTERS HAD BEEN ARRESTED CITY SCHOOLS WERE ORDERED TO REMAIN CLOSED TODAY AND PRIVATE INDUSTRY WAS ASKED TO KEEP BUSINESSES SHUTTERED PRESIDENT CLINTON YESTERDAY AFTERNOON DECLARED SOUTHERN CALIFORNIA A DISASTER AREA MAKING AVAILABLE VARIOUS KINDS OF FEDERAL AID AMONG THESE ARE GRANTS TO INDIVIDUALS OF AS MUCH AS TWELVE THOUSAND TWO HUNDRED DOLLARS SMALL BUSINESS ADMINISTRATION LOANS OF UP TO ONE HUNDRED THOUSAND DOLLARS TO REPAIR DAMAGE TO BUILDINGS THAT HOUSE SMALL ENTERPRISES AND AS MUCH AS TWENTY THOUSAND DOLLARS TO REPLACE DAMAGED CONTENTS AND TEMPORARY HOUSING FOR AS LONG AS EIGHTEEN MONTHS FOR THOSE WHO HAVE LOST THEIR HOMES THE PRESIDENT SAID THAT REPAIRING DAMAGED FREEWAYS WOULD BE THE MOST URGENT AND MOST EXPENSIVE NEED THAT WE KNOW ABOUT NOW AND THAT HE WOULD NOT VISIT THE AREA BECAUSE IT'S IMPORTANT THAT I NOT GO OUT THERE AND GET IN THE WAY IF LARGE POCKETS OF LOS ANGELES WERE LEFT UNDISTURBED BY THE QUAKE IT SOWED DEATH CHAOS AND DISASTER IN LESS FORTUNATE AREAS IT SENT WHAT SOME DISASTER OFFICIALS CALLED A WALL OF WALKING WOUNDED TO AREA HOSPITALS MANY OF THEM THROWN OUT OF BED OR CLOBBERED BY FALLING DEBRIS IN THE QUAKE'S VIOLENT AFTERMATH FOR RESIDENTS JOLTED AWAKE AND THINKING THE BIG ONE HAD STRUCK NO ONE COULD BLAME THEM THE VIEW IN SOME QUARTERS WAS APOCALYPTIC IN GRANADA HILLS FOR EXAMPLE RUPTURED GAS AND WATER LINES SENT BOTH WATER AND FIREBALLS SURGING ALONG RESIDENTIAL STREETS THE QUAKE THREW A SIXTY FOUR CAR TRAIN OFF ITS TRACK WRECKING CARS THAT THEN BEGAN TO LEAK SULFURIC ACID IN NORTHRIDGE NEAR THE EPICENTER THE BULLOCKS DEPARTMENT STORE WAS SHAKEN INTO A TWISTED PILE OF CONCRETE AND STEEL AND A COLLAPSING APARTMENT BUILDING IN THAT TOWN ACCOUNTED FOR AT LEAST FOURTEEN OF THE QUAKE'S DEATHS NORTHRIDGE IS QUINTESSENTIAL QUOTE VALLEY QUOTE IN LOS ANGELES PARLANCE A FLAT EXPANSE OF FORMER ORANGE GROVES LINED WITH TIDY MIDDLE CLASS HOMES WITH RECENT HISPANIC IMMIGRANTS CLUSTERED IN APARTMENTS NEAR THE MAIN AVENUES IT WAS RIGHT UNDER MY PILLOW SAID MUSIC PRODUCER DAVID WEISS A MEMBER OF THE ROCK GROUP WAS NOT WAS WHO LIVES IN NEARBY GRANADA HILLS IT WAS LIKE HAVING A CRICKET IN YOUR HAND AND SHAKING IT AS VIOLENTLY AS POSSIBLE A SEVEN FOOT ARMOIRE TUMBLED ONTO THE BED WHERE HE AND HIS WIFE WERE SLEEPING FORTUNATELY WHEN SHE HAD INSTALLED TALL BOOKSHELVES IN THE CHILDREN'S ROOMS SHE HAD HAD THEM BOLTED TO THE WALL MR. WEISS HAD JUST COMPLETED A MAJOR CHAOS REMOVAL IN HIS GARAGE AND SET UP AN EXPENSIVE RECORDING STUDIO WITH SEVEN THOUSAND RECORD ALBUMS MOST OF IT SURVIVED THOUGH THE CHAOS RETURNED IN AN INSTANT OUT ON THE STREET IN THE IMMEDIATE AFTERMATH LOOTING WAS GOING ON NEARBY AND A NUMBER OF ELDERLY PEOPLE WERE WANDERING THE SIDEWALKS LOOKING CONFUSED ALONG CORBIN AVENUE IN NORTHRIDGE SHOPPING CENTER SIDEWALKS WERE LITTERED WITH BROKEN GLASS PROPRIETORS DEBATED HOW TO SECURE THEIR PROPERTY FOR NIGHTFALL EVEN AS AFTERSHOCKS CONTINUED INTERMITTENTLY FOUAD KHOURY AN OWNER OF KING ARTHUR LIQUORS SURVEYED A BROWN STICKY RIVER OF BEVERAGES RUNNING ALONG HIS FLOOR THE FIFTY THOUSAND DOLLARS OR SO OF ESTIMATED DAMAGE WON'T BE COVERED BY INSURANCE IT'S IMPOSSIBLE TO GET EARTHQUAKE INSURANCE ON A BUSINESS ESPECIALLY A LIQUOR STORE HE SAID HE HAS AN EARTHQUAKE RIDER ON COVERAGE OF HIS NEARBY HOUSE BUT DOESN'T EXPECT IT TO HELP MUCH TO CORRECT THE BADLY CRACKED WALLS AND OTHER DAMAGE THE DEDUCTIBLE IS VERY HIGH HE SAID WITHOUT ELECTRICITY SHOP OWNERS IN THE HARDEST HIT AREAS OF NORTHRIDGE AND OTHER COMMUNITIES WERE PUZZLED ABOUT WHAT AID STATE AND FEDERAL AUTHORITIES MIGHT PLAN TO PROVIDE MR. KHOURY WAS PONDERING WHETHER TO STAY ON TO PROTECT WHAT WAS LEFT OF KING ARTHUR LIQUORS OR FIND PEOPLE TO WATCH THE PLACE FOR HIM LAST NIGHT QUOTE I REALLY DON'T KNOW QUOTE HE SAID DURING A BRIEF BREAK FROM HIS CLEANUP EFFORTS IN HOLLYWOOD SEVERAL DRUGSTORES AND SUPERMARKETS HAD CUSTOMERS LINING UP BEFORE DAYLIGHT WHILE CLERKS LED THEM IN SMALL GROUPS TO MAKE THEIR PURCHASES THOSE GASOLINE STATIONS WITH ELECTRICITY HAD LINES OF CARS AT THE PUMP THE HILLS WERE CLOUDED WITH DUST FROM THE SHAKING BUT HILL DWELLERS GENERALLY CAME OUT OF IT BETTER THAN THOSE IN THE FLAT AREAS BECAUSE THE HILLS OFTEN ARE CARVED OF GRANITE AND ACT AS SHOCK ABSORBERS OR SO THE APOCRYPHA GO ALONG RODEO DRIVE IN BEVERLY HILLS THE PLATE GLASS WINDOW AT BERTINI AN EXCLUSIVE WOMEN'S APPAREL RETAILER SHATTERED AFTER SEVERAL FIFTY POUND STEEL MANNEQUINS TUMBLED THROUGH TO LIE ON THE SIDEWALK INSIDE VERSACE GOWNS AND HUGO BOSS OUTFITS WERE STREWN EVERYWHERE AMID FALLEN CEILING PANELS THERE WERE FIVE THOUSAND DOLLARS OUTFITS JUST SITTING THERE ON THE FLOOR SAID JASON ELKIN STORE MANAGER DESPITE THE GROWING DEATH TOLL IT SEEMED REMARKABLE THAT EVEN MORE WEREN'T KILLED GIVEN THE NUMBER OF APARTMENT COMPLEXES ALL OVER THE SAN FERNANDO VALLEY THAT WERE SEVERELY DAMAGED TANIA SELLMEYER AWOKE AS THE FLOOR OF HER SHERMAN OAKS APARTMENT FELL ONTO THE PARKING GARAGE BELOW CRUSHING MY BRAND NEW JEEP CHEROKEE SHE CRAWLED ON HER KNEES AND JUMPED OUT A BROKEN WINDOW TO THE GROUND BELOW CUTTING HER ARMS IN THE PROCESS THERE WAS SMOKE EVERYWHERE I THOUGHT EVERYBODY WAS DEAD SHE SAID SHE WAS AMAZED TO LEARN LATER THAT THERE HAD BEEN NO FATALITIES IN HER BUILDING AS DARKNESS APPROACHED THE SAN FERNANDO VALLEY WAS STILL MOSTLY WITHOUT POWER COMMANDER DAVID GASCON CHIEF SPOKESMAN OF THE LOS ANGELES POLICE CALLED IT THE WORST UTILITY EMERGENCY IN THE CITY'S HISTORY HE DESCRIBED THE DECLARATION OF A DUSK TO DAWN CURFEW OVER THE WHOLE CITY AS A HEALTH AND SAFETY ISSUE QUOTE WE NEED TO PRESERVE CIVIL ORDER AND THIS IS ONE OF THE WAYS WE CAN DO IT QUOTE NUMEROUS BUSINESSES LARGE AND SMALL SUFFERED LOS ANGELES BASED FIRST INTERSTATE BANCORP WHICH OPERATES ONE OF THE STATE'S LARGEST BRANCH SYSTEMS SUSTAINED DAMAGE ESTIMATED AT MORE THAN ONE MILLION DOLLARS MAINLY AT ITS CREDIT CARD PROCESSING CENTER IN SIMI VALLEY WHERE WATER PIPES BROKE AUTOMATED TELLER MACHINES AT EIGHTEEN OF THE BANK'S NINETY LOS ANGELES AREA BRANCHES WERE NOT WORKING YESTERDAY BECAUSE OF POWER OUTAGES A BANK SPOKESMAN SAID KAISER PERMANENTE THE BIG HEALTH MAINTENANCE ORGANIZATION SAID ITS GRANADA HILLS BUILDING SUFFERED SEVERE STRUCTURAL DAMAGE ITS OUTER WALLS SHEARED OFF EXPOSING OFFICE SPACES TO THE OPEN AIR LIKE CELLS IN A BEEHIVE SINCE THE FACILITY OFFERS ONLY OUTPATIENT SERVICES NO ONE WAS THERE WHEN THE QUAKE STRUCK MUCH OF SOUTHERN CALIFORNIA'S AEROSPACE MANUFACTURING INFRASTRUCTURE WAS BADLY RATTLED BUT LITTLE MORE LOCKHEED CORPORATION'S CORPORATE HEADQUARTERS IN THE WESTERN SAN FERNANDO VALLEY TOWN OF CALABASAS TOOK A SEVERE EARLY MORNING JOLT DAMAGING THE COMPANY'S LAW LIBRARY AND AT GENERAL MOTORS CORPORATION'S HUGHES AIRCRAFT COMPANY UNIT LOS ANGELES AREA OPERATIONS WERE CLOSED YESTERDAY FOR AN EVALUATION OF DAMAGES FOR SOME SMALL BUSINESS PEOPLE WHO SUFFERED IN THE LOS ANGELES RIOTS THE EARTHQUAKE WAS ANOTHER MAJOR BLOW BROKEN GLASS AND PLASTER LITTERED THE FLOOR OF HUNG LEE'S ELEGANT LIFESTYLE FURNITURE STORE WOOD BEAMS WERE EXPOSED WHERE CHUNKS OF PLASTER FELL AND A CRACK RAN THE ENTIRE LENGTH OF THE BRICK BUILDING ON THE CORNER OF MELROSE AND WESTERN AVENUES IN HOLLYWOOD MR. LEE ESTIMATES THE DAMAGE AT TEN THOUSAND DOLLARS HE HAS NO EARTHQUAKE INSURANCE BUT DOESN'T PLAN TO APPLY FOR EMERGENCY FUNDS DURING THE NINETEEN NINETY TWO RIOTS HIS STORE WAS STRIPPED BARE BY LOOTERS AND THEN HIS INSURANCE COMPANY DECLARED BANKRUPTCY HE IS STILL EIGHTY THOUSAND DOLLARS IN DEBT THIS TIME I'M NOT EVEN GOING TO APPLY FOR A GOVERNMENT LOAN HE SAID NOTING THAT AFTER THE RIOTS HE APPLIED FOR A SMALL BUSINESS ADMINISTRATION LOAN AND WAS TOLD HE DIDN'T QUALIFY ALL IN ALL MR. LEE SAID THIS ISN'T TOO BAD COMPARED TO THE RIOTS U. K. INDUSTRIAL HOLDING COMPANY B. T. R. P. L. C. SAID IT WILL FLOAT ITS GRAHAM GROUP SEEKING A LISTING ON THE LONDON STOCK EXCHANGE THROUGH A PUBLIC OFFER AND PLACING THE GRAHAM GROUP ENCOMPASSES TWO DISTRIBUTION BUSINESSES GRAHAM BUILDERS MERCHANTS AND GOODMAN CROGGON IT HAS TWO THOUSAND NINE HUNDRED EMPLOYEES AND IS THE U. K.'S FOURTH LARGEST BUILDERS MERCHANT BY SALES ACCOUNTING FOR AROUND FIVE PERCENT OF THE MARKET IN NINETEEN NINETY TWO GRAHAM GROUP SALES TOTALED AROUND THREE HUNDRED FIFTY MILLION B. T. R. SAID A SPOKESMAN SAID IT WAS TOO EARLY TO DIVULGE WHAT PRICE IT EXPECTS TO RECEIVE IN THE FLOTATION HE SAID A PROSPECTUS WILL BE RELEASED IN FEBRUARY IN LONDON STOCK EXCHANGE TRADING YESTERDAY B. T. R. GAINED FOUR POINT FIVE PENCE TO THREE HUNDRED SIXTY FOUR POINT FIVE PENCE ELI LILLY PLANS TO SELL OR SPIN OFF ITS ENTIRE MEDICAL DEVICE BUSINESS ACCORDING TO PEOPLE FAMILIAR WITH THE DECISION THE MOVE TO SHED THE NINE COMPANIES WITH TOTAL ANNUAL SALES OF ABOUT ONE POINT TWO BILLION DOLLARS IS THE FIRST INDICATION OF A CHANGE IN COURSE FOR LILLY UNDER ITS NEW CHAIRMAN RANDALL TOBIAS THE LANDSCAPE OF VARIOUS MEDICAL FIELDS WOULD BE ALTERED BY THE PLAN SINCE LILLY OWNS THE MARKET LEADER OR A STRONG NUMBER TWO PLAYER IN SEVERAL AREAS INSURANCE COMPANIES BRACED FOR AN ONSLAUGHT OF CLAIMS FROM EARTHQUAKERAVAGED LOS ANGELES THAT SOME EXPERTS SAID COULD REACH ONE BILLION DOLLARS BUT THE INDUSTRY IS EXPECTED TO ESCAPE SERIOUS FINANCIAL DAMAGE BECAUSE OF THE NATURE OF EARTHQUAKE COVERAGE SUCH AS HIGH PREMIUMS AND DEDUCTIBLES CHINA AGREED TO LIMIT GROWTH IN ITS TEXTILE EXPORTS TO THE U. S. OVER THREE YEARS U. S. TRADE REPRESENTATIVE KANTOR SAID THERE WAS QUOTE NO LINKAGE QUOTE BETWEEN THE PACT AND OTHER BENEFITS SUCH AS AN EXTENSION OF FAVORED TRADE STATUS BUT SAID THAT IT MARKS THE BEGINNING OF A QUOTE HEALTHIER QUOTE RELATIONSHIP THE U. S. IS PUSHING JAPAN TO AGREE TO INCREASE ITS PURCHASES OF U. S. MADE AUTO PARTS BY ABOUT TWENTY PERCENT A YEAR AS THE WHITE HOUSE BROADENS ITS PRESSURE ON JAPAN TO MOVE ON STALLED TRADE TALKS JAPAN'S CABINET ENDORSED A PLAN TO OPEN THE NATION'S PUBLIC WORKS MARKET TO FOREIGN CONSTRUCTION COMPANIES IN A BID TO CLEAR AWAY ONE OF ITS MOST NETTLESOME TRADE DISPUTES WITH THE U. S. GRUMMAN PLANS TO CLOSE ONE THIRD OF ITS FACTORY SPACE AND TRIM ABOUT FOUR HUNDRED JOBS AS PART OF A SUBSTANTIAL RESTRUCTURING WHICH INCLUDES A FOURTH QUARTER CHARGE OF AS MUCH AS NINETY MILLION DOLLARS THE FIRM SAID MORE CUTS ARE LIKELY FROM ITS EIGHT THOUSAND MEMBER FORCE AS IT FACES FUTURE MILITARY SPENDING REDUCTIONS A RECOVERY IN EUROPE APPEARS TO HAVE BEGUN THOUGH IT COULD BE QUITE A WHILE BEFORE BUSINESS REALLY PICKS UP A EUROPEAN UNION PANEL PREDICTS ONE POINT THREE PERCENT GROWTH AMONG ITS MEMBER STATES THIS YEAR AFTER A ZERO POINT FOUR PERCENT CONTRACTION IN NINETEEN NINETY THREE VIACOM IS PREPARING TO RAISE ITS NINE POINT THREE BILLION DOLLAR BID FOR PARAMOUNT TO STAY IN THE CONTEST WITH Q. V. C. ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION WOODWARD AND LOTHROP FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER ELEVEN OF THE FEDERAL BANKRUPTCY CODE MICROWARE SYSTEMS LANDED A BIG MULTIMEDIA INDUSTRY COUP IT DESIGNS THE OPERATING SYSTEM USED IN THE T. V. SET TOP BOXES OF ALL THREE SUPPLIERS NAMED BY BELL ATLANTIC FOR ITS AGGRESSIVE ROLLOUT OF INTERACTIVE T. V. SERVICE A FORMER PRUDENTIAL SECURITIES PRODUCT MANAGER TIED THE FIRM'S LEGAL DEPARTMENT DIRECTLY TO ITS LIMITED PARTNERSHIP SCANDAL FOR THE FIRST TIME PEOPLE FAMILIAR WITH THE INQUIRY SAID FIRST CHICAGO REPORTED A TWENTY SEVEN PERCENT INCREASE IN FOURTH QUARTER PROFIT DRIVEN BY STRONG CREDIT CARD EARNINGS DUN AND BRADSTREET SAID THE CHAIRMAN OF ITS A. C. NIELSEN MARKET RESEARCH UNIT JOHN C. HOLT RESIGNED AN APPLE EXECUTIVE INSTRUMENTAL IN LAUNCHING A LINE OF PORTABLE COMPUTERS IS LEAVING FOR MOTOROLA THE LATEST IN A STRING OF HIGH LEVEL DEPARTURES ALEXANDER AND ALEXANDER'S CHAIRMAN QUIT INCREASING THE LIKELIHOOD OF AN OVERHAUL AT THE INSURANCE BROKER COMMODITIES OIL FIFTEEN DOLLARS AND TEN CENTS A BARREL UP THIRTY TWO CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY TWO POINT ONE FOUR OFF ZERO POINT FIVE ONE SPOT INDEX ONE HUNDRED THIRTY POINT FOUR ONE UP ZERO POINT ONE THREE DOLLAR ONE HUNDRED ELEVEN POINT OH SIX YEN UNCHANGED ONE POINT SEVEN FIVE FIVE THREE MARKS UP ZERO POINT ZERO ZERO FIVE EIGHT STANDARD AND POOR'S CORPORATION LOWERED ITS LONG TERM DEBT RATINGS FOR THE OPERATING UNITS OF PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CITING SLUGGISH SALES GROWTH AND INTENSIFYING COMPETITION ABOUT FIVE POINT SIX BILLION DOLLARS OF DEBT IS AFFECTED PUBLIC SERVICE ELECTRIC AND GAS COMPANY THE NEWARK N. J. UTILITY HOLDING COMPANY'S PRIMARY OPERATING UNIT HAD ITS SENIOR SECURED DEBT RATING DROPPED TO SINGLE A MINUS FROM SINGLE A S. AND P. SAID DESPITE AMPLE GENERATING RESERVES AND ONLY LIMITED FINANCING PRESSURES DURING THE NEXT SEVERAL YEARS P. S. E. AND G'S FINANCIAL IMPROVEMENT LIKELY WILL BE LIMITED BY THE WEAK LOCAL ECONOMY AND A HIGH DIVIDEND PAYOUT QUOTE WE ARE DISAPPOINTED WITH S. AND P'S DECISION TO DOWNGRADE QUOTE A SPOKESMAN FOR P. S. E. AND G. SAID WE AGREE THAT THE INDUSTRY IS BEING CHALLENGED BY COMPETITION BUT WE FEEL THAT THE COMPANY HAS IS AND WILL CONTINUE TO TAKE MEASURES TO COMPETE SUCCESSFULLY IN THIS BUSINESS THE COMPANY ADDED THAT IT HAS NO PLANS TO REDUCE ITS DIVIDEND IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY PUBLIC SERVICE ENTERPRISE GROUP FELL THIRTY SEVEN POINT FIVE CENTS TO THIRTY DOLLARS AND FIFTY CENTS BOMBARDIER INCORPORATED SOLD THE ITALIAN GOVERNMENT FOUR CANADAIR C. L. FOUR HUNDRED FIFTEEN FIREFIGHTING AMPHIBIOUS AIRCRAFT FOR A TOTAL OF ABOUT ONE HUNDRED MILLION CANADIAN DOLLARS SEVENTY FIVE POINT FIVE MILLION U. S. DOLLARS A. T. AND T. CAPITAL CORPORATION ACQUIRED AVIS INCORPORATED'S AVIS LEASING UNIT IN TORONTO WHICH LEASES AUTOMOBILES TO SMALL AND MIDSIZE BUSINESS CLIENTS IN CANADA THE TRANSACTION DOESN'T INCLUDE AVIS'S CONSUMER CARRENTAL BUSINESS TERMS WEREN'T DISCLOSED A. T. AND T. CAPITAL IS A UNIT OF AMERICAN TELEPHONE AND TELEGRAPH COMPANY VARITY CORPORATION'S MASSEY FERGUSON UNIT IS DISCUSSING FORMING A JOINT VENTURE WITH RENAULT S. A.'S RENAULT AGRICULTURE S. A. UNIT IN FRANCE TO RESEARCH DEVELOP AND MANUFACTURE TRACTOR TRANSAXLES AND RELATED COMPONENTS AT MASSEY FERGUSON'S OPERATIONS IN BEAUVAIS FRANCE TERMS WEREN'T DISCLOSED SCHULLER INTERNATIONAL INCORPORATED A UNIT OF MANVILLE CORPORATION AND OWENS CORNING FIBERGLAS CORPORATION TOLEDO OHIO HAVE COMPLETED THE SWAP OF PART OF THEIR ROOFING BUSINESSES THE TRANSACTION GIVES SCHULLER THE COMMERCIAL AND INDUSTRIAL ROOFING BUSINESS OF OWENS CORNING AND OWENS CORNING WILL PICK UP THE RESIDENTIAL ROOFING BUSINESS OF SCHULLER A MAJOR EARTHQUAKE STRUCK LOS ANGELES KILLING OVER TWO DOZEN PEOPLE THE QUAKE HIT BEFORE DAWN DAMAGING UP TO ONE THOUSAND BUILDINGS CRUMPLING FREEWAY OVERPASSES AND SPARKING MORE THAN ONE HUNDRED FIRES IT CAUSED POWER OUTAGES AFFECTING AS MANY AS ONE POINT THREE MILLION PEOPLE AND SNARLED AIR RAIL AND HIGHWAY TRAFFIC THE TEMBLOR REGISTERING SIX POINT SIX ON THE RICHTER SCALE AND FELT AS FAR AWAY AS LAS VEGAS WAS THE LATEST IN A SERIES OF BLOWS TO THE REGION'S ECONOMY THE EPICENTER WAS THE SAN FERNANDO VALLEY AND THE HARDEST HIT TOWN WAS NORTHRIDGE WHERE FOURTEEN PEOPLE DIED IN THE COLLAPSE OF AN APARTMENT HOUSE LATE YESTERDAY LOS ANGELES MAYOR RIORDAN IMPOSED A DUSK TO DAWN CURFEW IN THE CITY PRESIDENT CLINTON SIGNED A FEDERAL DECLARATION OF DISASTER FOR SOUTHERN CALIFORNIA CLEARING THE WAY FOR MASSIVE GOVERNMENT RELIEF AID ISRAEL IS STRONG ENOUGH TO TAKE A QUOTE CALCULATED RISK QUOTE FOR PEACE EVEN IF THAT MEANS RETURNING THE GOLAN HEIGHTS TO SYRIA ISRAEL'S DEPUTY DEFENSE MINISTER SAID BUT HE SAID THE RABIN GOVERNMENT WOULD HOLD A REFERENDUM ON ANY EXTENSIVE PULLBACK FROM THE GOLAN HE STRESSED THAT THE PRICE OF A SETTLEMENT WITH SYRIA WAS FULL WITHDRAWAL MEXICO'S PEACE COMMISSIONER SAID HE RECEIVED AN OFFICIAL COMMUNIQUE FROM THE REBEL ZAPATISTA NATIONAL LIBERATION ARMY HE WOULDN'T DISCLOSE ANY DEMANDS OUTLINED IN THE COMMUNIQUE WHICH MARKED THE FIRST OFFICIAL CONTACT BETWEEN THE GOVERNMENT AND THE REBELS SINCE A PEASANT UPRISING BROKE OUT JANUARY FIRST IN SOUTHERN MEXICO YELTSIN TRIED TO RALLY HIS DIVIDED GOVERNMENT AND VOWED TO FORGE AHEAD WITH REFORM THE RUSSIAN LEADER ACCEPTED THE RESIGNATION OF HIS REFORM CZAR GAIDAR WHO QUIT BECAUSE OF CONSERVATIVE RESISTANCE TO HIS POLICIES FINANCE MINISTER FYODOROV SAID HE WOULD STAY ON ONLY IF THE CENTRAL BANK CHIEF AND DEPUTY PREMIER BOTH STEPPED DOWN A SPECIAL PROSECUTOR'S REPORT IS DUE TO BE ISSUED TODAY ON THE IRAN CONTRA SCANDAL AND THE DOCUMENT REPORTEDLY WILL CRITICIZE EX PRESIDENT REAGAN AND HIS AIDES THE REPORT BY INDEPENDENT COUNSEL WALSH COMPLETED IN AUGUST BUT SEALED IN COURT FILES SINCE THEN CHRONICLES THE SEVEN YEAR CRIMINAL PROBE OF ARMS FOR HOSTAGES DEALS WITH IRAN BOSNIAN SERB LEADERS THREATENED TO UNLEASH ALL OUT WAR AGAINST THE MUSLIM LED GOVERNMENT IF THERE IS NO AGREEMENT AT GENEVA TALKS THAT START TODAY SEPARATELY U. N. SECRETARY GENERAL BOUTROS GHALI ORDERED U. N. PEACEKEEPERS TO FORMULATE CONCRETE PLANS FOR TWO POSSIBLE MILITARY OPERATIONS THAT COULD REQUIRE NATO AIR STRIKES BRITAIN'S MAJOR TESTIFIED THAT HE WASN'T INFORMED ABOUT A NINETEEN EIGHTY EIGHT GOVERNMENT DECISION TO EASE RESTRICTIONS ON ARMS SALES TO IRAQ THE PRIME MINISTER APPEARED BEFORE A TRIBUNAL HE SET UP IN NINETEEN NINETY TWO FOLLOWING REVELATIONS THAT THE U. K. GOVERNMENT SECRETLY APPROVED THE EXPORT TO IRAQ OF EQUIPMENT USED TO MAKE WEAPONS FIFTEEN THOUSAND ZULUS RALLIED OUTSIDE THE SOUTH AFRICAN PRESIDENT'S OFFICE IN PRETORIA TO PRESS THEIR AUTONOMY DEMANDS THE ZULUS BRANDISHING SPEARS AND GUNS DEMONSTRATED AS DE KLERK MET WITH ZULU KING ZWELETHINI AND ZULU LEADER BUTHELEZI WHO WANT GUARANTEES OF ZULU AUTONOMY AS A CONDITION FOR TAKING PART IN AN APRIL VOTE TWO GERMAN NEO NAZIS WERE JAILED FOR ASSAULTING A U. S. OLYMPIC ATHLETE WHO WENT TO THE AID OF A BLACK COLLEAGUE AFTER HE WAS INSULTED BY SKINHEADS SHOUTING RACIAL EPITHETS A COURT IN THE EASTERN GERMAN TOWN OF SUHL FOUND THE TWO DEFENDANTS GUILTY OF THE OCTOBER TWENTY NINTH BEATING OUTSIDE A DISCO IN THE WINTER SPORTS RESORT OF OBERHOF U. S. KOREAN WAR P. O. W.S WERE TAKEN SECRETLY TO THE SOVIET UNION AND NEVER RETURNED ACCORDING TO A STUDY ORDERED BY THE PENTAGON THE REPORT CONCLUDED THAT FIFTY U. S. SERVICEMEN MISSING FROM THE NINETEEN FIFTY TO FIFTY THREE WAR WERE TRANSFERRED TO THE SOVIET UNION COLOMBIA'S FINANCE MINISTER ESCAPED ASSASSINATION IN BOGOTA WHEN A REMOTE CONTROL BOMB HIDDEN IN A LAMPPOST EXPLODED NEAR HIS MOTORCADE GUERRILLAS CLAIMED RESPONSIBILITY FOR THE ATTACK IN WHICH A BODYGUARD WAS INJURED SEPARATELY REBELS KIDNAPPED TWO U. S. MISSIONARIES IN A TOWN SOUTHEAST OF THE CAPITAL ON SUNDAY THE U. N. HAS ORDERED THE RELEASE OF EIGHT SUPPORTERS OF SOMALI CLAN LEADER AIDID THE DETAINEES HELD IN CONNECTION WITH ATTACKS ON U. N. PEACEKEEPERS WERE THE LAST OF ABOUT SEVEN HUNDRED FIFTY SOMALI DETAINEES ORDERED FREED POOR BETSEY WRIGHT CAPITAL INSIDERS SAID WITH A HINT OF CONDESCENSION HER OLD ARKANSAS BOSS BILL CLINTON DIDN'T OFFER HER A JOB IN THE WHITE HOUSE OR ANYWHERE ELSE IN HIS NEW GOVERNMENT AND SO THEY SAID THE BEST SHE COULD DO WAS ACCEPT A KINDLY BENEFICE AN EMPTY DESK IN A DOWNTOWN LOBBYIST'S OFFICE POOR BETSEY WRIGHT INDEED ALL SHE'S DONE SINCE SHE CAME TO TOWN LAST MARCH IS MAKE A SPLASH LOBBYING FOR EVERYTHING FROM THE NORTH AMERICAN FREE TRADE AGREEMENT TO AMERICAN AIRLINES TO HEALTH CARE AND WHEN SHE WASN'T DOING THAT SHE WAS FLYING DOWN TO LITTLE ROCK ON HER OWN TIME TO WORK SOME DEXTROUS DAMAGE CONTROL OVER ALLEGATIONS BY ARKANSAS STATE TROOPERS THAT THEY HAD SEEN MR. CLINTON IN SOME PRETTY COMPROMISING SITUATIONS QUOTE I'M HAVING THE TIME OF MY LIFE QUOTE SHE SAYS IN AN INTERVIEW IN HER COMFORTABLE OFFICE ON THE SIXTH FLOOR OF WASHINGTON'S FIRST STEEL BEAMED OFFICE TOWER THIS IS WONDERFUL SHE'S A GREAT STRATEGIST AND SHE'S DOING WONDERFUL THINGS FOR US SAYS HER BOSS ANNE WEXLER A PROMINENT DEMOCRAT AND CHAIRMAN OF WEXLER GROUP A GOVERNMENT RELATIONS AND PUBLIC AFFAIRS CONSULTING UNIT OF HILL AND KNOWLTON INCORPORATED ITSELF A UNIT OF W. P. P. GROUP P. L. C. ITS CLIENT LIST RUNS FROM AMERICAN AIRLINES TO GENERAL MOTORS CORPORATION TO J. P. MORGAN AND COMPANY MS. WRIGHT WON'T EVEN DISCUSS WHO HER CLIENTS ARE LET ALONE HOW MUCH SHE IS PAID AS ONE OF WEXLER GROUP'S SEVEN EXECUTIVE VICE PRESIDENTS BUT IT'S A FAIR BET THAT IT IS A LOT MORE THAN SHE MADE IN HER YEARS AS ONE OF MR. CLINTON'S TOP AIDES AND POLITICAL OPERATIVES IN LITTLE ROCK FOR THE FIRST TIME IN MY LIFE I CAN SAY IT'S NO ONE ELSE'S BUSINESS SHE SAYS WHAT MAKES THE FORTY NINE YEAR OLD MS. WRIGHT SO SPECIAL IS HER RELATIONSHIP TO BILL AND HILLARY RODHAM CLINTON SHE'S SO CLOSE TO THE FIRST COUPLE THAT SHE CAN AFFORD TO TURN DOWN AN INVITATION TO DROP BY THE WHITE HOUSE FOR AN INFORMAL DINNER AND A MOVIE AN OPPORTUNITY MOST LOBBYISTS AND WHEELER DEALERS HERE WOULD DIE FOR I DIDN'T WANT TO SEE THE MOVIE SHE SAYS SO CLOSE TOO THAT MS. WRIGHT EXPECTS TO BE SUBPOEANED BY A FEDERAL GRAND JURY IN LITTLE ROCK LOOKING INTO MR. AND MRS. CLINTON'S ROLE IN THE CONTROVERSY SURROUNDING THEIR WHITEWATER DEVELOPMENT COMPANY REAL ESTATE INVESTMENT MS. WRIGHT SAYS THE FEDERAL BUREAU OF INVESTIGATION TOLD HER TO EXPECT SUCH A SUBPOENA BUT SHE SAYS SHE HAS NOW BEEN TOLD TO DISREGARD THAT WARNING IN ANY EVENT SHE SAYS SHE EXPECTS TO BE SUBPOENAED EVENTUALLY BECAUSE SHE KNOWS SO MUCH ABOUT MR. CLINTON'S ARKANSAS CAMPAIGN RECORDS SHE SAYS SHE WILL CO OPERATE WITH INVESTIGATORS MS. WRIGHT COMES FROM RURAL TEXAS SHE WAS REARED IN LITTLE ALPINE JUST DOWN THE ROAD FROM MARATHON IN THE SOUTHWESTERN BIG BEND CORNER OF THE STATE AND HONED HER POLITICAL SKILLS AT THE UNIVERSITY OF TEXAS SHE MET BILL CLINTON IN NINETEEN SEVENTY TWO WHEN THEY BOTH WORKED IN TEXAS IN GEORGE MCGOVERN'S FORLORN PRESIDENTIAL CAMPAIGN SHE CAME TO LITTLE ROCK IN NINETEEN EIGHTY AFTER MR. CLINTON HAD BEEN DEFEATED FOR RE ELECTION AS GOVERNOR AND THEN SERVED AS HIS CHIEF OF STAFF AFTER HE WAS RETURNED TO OFFICE IN NINETEEN EIGHTY TWO SHE RAN HIS SUCCESSFUL RE ELECTION CAMPAIGNS IN NINETEEN EIGHTY TWO NINETEEN EIGHTY FOUR AND NINETEEN EIGHTY SIX QUOTE THERE IS NO PERSON IN THE ENTIRE UNIVERSE WHO IS MORE LOYAL TO BILL AND HILLARY CLINTON THAN BETSEY QUOTE SAYS MS. WEXLER MS. WRIGHT IS ALMOST AS PROTECTIVE OF THE STATE OF ARKANSAS SHE LOVES THE PLACE WHEN MR. CLINTON DECIDED TO RUN FOR PRESIDENT MS. WRIGHT SAW THAT EACH OF THE HARD EDGED HANDLERS HE HIRED WAS GIVEN A COPY OF DIANE BLAIR'S BOOK ABOUT ARKANSAS GOVERNMENT AND THE STATE'S RICH AND SOMETIMES GAMEY POLITICAL HISTORY SHE WANTED THEM TO READ THE BOOK AND LEARN TO APPRECIATE ARKANSAS'S RURAL CHARMS THE FACT THAT NONE OF MR. CLINTON'S HIRED GUNS SHE CALLS THEM THE WHITE BOYS READ THE BOOK OR TRIED TO GIVE ARKANSAS A FAIR SHAKE STILL RILES HER THEY SHOWED SO MUCH DISDAIN TOWARDS THE STATE I FELT IT WAS VERY OFFENSIVE SHE SAYS AT A CAMPAIGN MANAGERS' SEMINAR AT HARVARD UNIVERSITY'S INSTITUTE OF POLITICS AFTER THE ELECTION SHE UNLOADED ON THE ATTITUDES OF A NUMBER OF MR. CLINTON'S HANDLERS FINGERING POLLSTER STANLEY GREENBERG AS BEING PARTICULARLY NASTY ABOUT ARKANSAS AND WHAT MR. CLINTON HAD DONE FOR THE STATE DURING THE TWELVE YEARS HE WAS ITS GOVERNOR I DON'T KNOW WHY I SINGLED HIM MR. GREENBERG OUT SHE SAYS HE WASN'T ANY WORSE THAN THE REST OF THEM SHE IS INTENSE ABOUT HER CLINTON ARKANSAS CONNECTION AND IT WAS THIS INTENSITY THAT OFTEN LED THE CAMPAIGN HANDLERS TO WORK AROUND HER DURING THE CAMPAIGN IN WHICH SHE WAS OFFICIALLY LISTED AS DEPUTY CHAIRMAN THE HANDLERS WON'T SOON FORGET THE TIME SHE SET OUT TO REBUT CHARGES THAT MR. CLINTON HAD RAISED TAXES AND FEES IN ARKANSAS SOMETHING LIKE ONE HUNDRED TWENTY EIGHT TIMES NOT SO SHE TOLD REPORTERS IT WAS ONLY ABOUT ONE HUNDRED TEN TIMES AN ADMISSION THAT LEFT SENIOR STRATEGIST JAMES CARVILLE SPEECHLESS SHE CONTINUES TO VIEW THE QUOTE WHITE BOYS QUOTE LEFT OVER FROM THE CAMPAIGN AND STILL WORKING FOR MR. CLINTON WITH DEEP SUSPICION SHE LAYS THE WHITE HOUSE'S PROBLEMS IN DEALING WITH THE WHITEWATER CONTROVERSY TO THE FACT THAT NONE OF THEM KNEW ANYTHING ABOUT THE ISSUE THERE WAS NO CONTINUITY THEY COULDN'T CONNECT THE DOTS LEFT UNSAID WAS THE THOUGHT THAT SHE DID KNOW SOMETHING ABOUT WHITEWATER AND COULD HAVE DONE A BETTER JOB CONNECTING THE DOTS AND SO WHEN IT COMES TO LOBBYING THE WHITE HOUSE NOT EVERYONE WORKING THERE IS HER FRIEND SHE PREFERS TO DEAL WITH OLD FRIENDS AND COLLEAGUES FROM ARKANSAS WHOSE CONNECTIONS TO THE CLINTONS GO BACK BEYOND THE CAMPAIGN FORTUNATELY WASHINGTON SWARMS WITH THEM IT'S NICE SHE SAYS I CAN'T WALK MUCH MORE THAN A BLOCK OR SO WITHOUT BUMPING INTO SOMEONE FROM ARKANSAS SHE WAS FIRST USED AT WEXLER GROUP TO LOBBY FOR NAFTA WORKING MOSTLY TO DRUM UP SUPPORT FROM GOVERNORS AND MAYORS I MUST SAY I WAS IMPRESSED SAYS CRAIG FULLER A FORMER HIGH RANKING AIDE TO GEORGE BUSH AND NOW SENIOR VICE PRESIDENT OF PHILIP MORRIS COMPANIES WHO WORKED WITH MS. WRIGHT ON THE NAFTA CAMPAIGN WE WERE AT THE WHITE HOUSE ALMOST EVERY DAY AND SHE WON THE RESPECT OF A LOT OF PEOPLE SHE HAS ALSO USED HER CONNECTIONS TO SET UP WHITE HOUSE MEETINGS FOR REPRESENTATIVES OF THE PAPER INDUSTRY IN THEIR EFFORTS TO WATER DOWN FEDERAL PROVISIONS ON HOW MUCH RECYCLED WASTE SHOULD BE CONTAINED IN PAPER BOUGHT BY THE FEDERAL GOVERNMENT THE WEXLER FIRM'S CLIENT IS THE AMERICAN FOREST AND PAPER ASSOCIATION MS. WRIGHT ALSO HAS PUT IN A LOT OF TIME WITH AN OBSCURE CONGRESSIONALLY SPONSORED AGENCY CALLED THE COLLEGE CONSTRUCTION LOAN INSURANCE ASSOCIATION BETTER KNOWN TO ITS FRIENDS AS CONNIE LEE CONGRESS SET UP CONNIE LEE IN NINETEEN EIGHTY SEVEN TO GUARANTEE LOW RATED BONDS FOR BUILDING PROGRAMS AT COLLEGES AND UNIVERSITIES THE CONGRESSIONAL THINKING WAS THAT THE PRIVATE MARKET WOULD COVER THE INSURANCE FOR THE HIGHER RATED BONDS BUT WITH SUCH RESTRICTIONS IN ITS OPERATING CHARTER PROFIT SEEKING CONNIE LEE HASN'T HAD MUCH OF A CHANCE TO SPREAD ITS WINGS AND SO IT HAS TURNED TO MS. WRIGHT AND WEXLER GROUP TO LOBBY THE WHITE HOUSE AND CONGRESS FOR PERMISSION TO EXPAND ITS INSURANCE BUSINESS TO BOND ISSUES FOR SECONDARY AND ELEMENTARY SCHOOLS AND POSSIBLY TO BOND ISSUES FOR INFRASTRUCTURE WORK EVERYTHING FROM BRIDGES TO SEWERS MS. WRIGHT SAYS SHE KNOWS A LOT ABOUT THIS LINE OF BUSINESS FROM HER DAYS IN LITTLE ROCK QUOTE PEOPLE KEEP SAYING IF YOU COME FROM LOCAL GOVERNMENT YOU DON'T KNOW ANYTHING ABOUT WASHINGTON THAT'S A CROCK WE'VE BEEN THE ONES DEALING FOR YEARS WITH ALL THESE PROGRAMS DUMPED ON US BY THE FEDERAL GOVERNMENT BETSEY WRIGHT HAS BEEN VERY EFFECTIVE SAYS OLIVER SOCKWELL CONNIE LEE'S AMBITIOUS PRESIDENT SHE HAS AN ALMOST UNIQUE SKILL TO TRANSLATE HIGHLY COMPLEX ISSUES INTO WORDS THAT EVERYONE CAN UNDERSTAND MS. WRIGHT HAS NOW REACHED THE POINT WHERE SHE GETS CREDIT FOR PULLING OFF LOBBYING COUPS IN SITUATIONS WHERE SHE HAS BARELY BEEN INVOLVED IT WAS RUMORED FOR EXAMPLE THAT SHE WAS A PIVOTAL FACTOR IN GETTING PRESIDENT CLINTON TO INTERVENE IN THE AMERICAN AIRLINES STRIKE JUST BEFORE THANKSGIVING AND THAT A GRATEFUL AIRLINE HAD PAID OUT ONE MILLION DOLLARS TO THE WEXLER FIRM IN ACKNOWLEDGEMENT RIDICULOUS SAYS MS. WEXLER MS. WRIGHT WAS BARELY INVOLVED WITH THE STRIKE ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE SITUATION MS. WRIGHT SEE NOTHING WRONG IN BLENDING PERSONAL RESCUE MISSIONS FOR THE PRESIDENT WITH HER LOBBYING EFFORTS INSIDE THE ADMINISTRATION I'M VERY CAREFUL NOT TO ABUSE THE RELATIONSHIP SHE SAYS QUOTE WHEN I CALL PEOPLE I ALWAYS MENTION THE SUBJECT I WANT TO TALK ABOUT AND I ALWAYS IDENTIFY MY CLIENT QUOTE STANDARD AND POOR'S CORPORATION'S QUOTE RISK RATINGS QUOTE FOR BOND FUNDS HAD A FRUSTRATING START YESTERDAY AS ONLY NINETEEN FUNDS OUT OF ROUGHLY ONE HUNDRED CANDIDATES AGREED TO MAKE THEIR NEW GRADES PUBLIC THE RATINGS WHICH ATTEMPT TO GAUGE THE FUTURE VOLATILITY OF BOND FUNDS' RETURNS ARE USEFUL FOR COMPARING FUNDS WITH SIMILAR INVESTMENT OBJECTIVES THEY'RE INTENDED TO HELP INVESTORS SPOT HIDDEN MARKET RISKS AMONG FUNDS THAT OTHERWISE LOOK LIKE SAFE BETS FOR INSTANCE AMONG FUNDS RATED TRIPLE A FOR CREDITWORTHINESS ONLY THE AIM LIMITED MATURITY FUND ALSO CARRIES A TRIPLE A RATING FOR MARKET RISK ACCORDING TO S. AND P'S LIST BY CONTRAST THE SMITH BREEDEN SHORT DURATION U. S. GOVERNMENT FUND RATES A DOUBLE A PLUS FOR MARKET RISK WHILE THE TNE GOVERNMENT SECURITIES FUND RATES JUST A SINGLE A PLUS FOR MARKET RISK UNLIKE CREDIT RATINGS WHICH MEASURE THE ABILITY OF BOND ISSUERS TO REPAY DEBT THE MARKET RISK RATINGS ARE SUPPOSED TO GAUGE HOW WELL A BOND FUND MIGHT DO UNDER A VARIETY OF MARKET CHANGES SUCH AS A SWING IN INTEREST RATES OR HOW LIKELY IT IS THE FUND MIGHT GET HIT BY ITS RELIANCE ON DERIVATIVES ALSO LIQUIDITY AND CREDIT ANALYSIS AND EVEN ASSESSMENTS OF MANAGERS' PERFORMANCES WILL BE CONSIDERED IN THE RISK RATINGS S. AND P. SAID THE AGENCY WILL USE STRESS TEST MODELS TO ANTICIPATE THESE VARIABLES THE NINETEEN FUNDS THAT HAVE BEEN RATED BY S. AND P. FOR MARKET RISK HAVE A TOTAL OF NEARLY FOUR BILLION DOLLARS IN ASSETS THE ONLY ACTIVE SECTOR OF THE U. S. BOND MARKET YESTERDAY WAS THE BOND FUTURES MARKET AT THE CHICAGO BOARD OF TRADE WHERE PRICES DROPPED SLIGHTLY MOST OTHER SECTORS OF THE MARKET WERE CLOSED IN OBSERVANCE OF THE MARTIN LUTHER KING JUNIOR HOLIDAY BOND FUTURES CONTRACTS ARE AGREEMENTS TO BUY OR SELL A TREASURY SECURITY AT A SET PRICE AT A SPECIFIED DATE IN GAUGING THE PROSPECTIVE FUTURE PERFORMANCE OF A FUND S. AND P'S RATINGS WILL DIFFER FROM THOSE OF MORNINGSTAR INCORPORATED THE CHICAGO NEWSLETTER SERVICE BECAUSE THE MORNINGSTAR RATINGS RELY ONLY ON PAST PERFORMANCE WHILE INVESTORS SHOULD LOOK AT PAST PERFORMANCE THEY SHOULD BE AWARE THAT MORE THAN HALF OF THE BOND FUNDS MARKETED TODAY HAVE BEEN IN EXISTENCE LESS THAN FIVE YEARS UNDER FAVORABLE FALLING INTEREST RATE CONDITIONS ACCORDING TO SANFORD BRAGG S. AND P. MANAGING DIRECTOR S. AND P. SAID IT WILL RATE FUNDS USING A LOWER CASE LETTER SCALE RANGING FROM TRIPLE A THE LEAST VOLATILE TO TRIPLE C. THE MOST VOLATILE THE RATINGS WILL BE UPDATED EVERY MONTH INVESTORS CAN RECEIVE A FREE COPY OF S. AND P'S GUIDE TO BOND FUND SAFETY WHICH PROVIDES AN UP TO DATE LISTING OF RATED FUNDS WITH DETAILS OF WHAT'S BEHIND THE RATINGS BY CALLING ONE EIGHT HUNDRED FOUR HUNDRED TWENTY FOUR FUND MEANWHILE THE MARCH THIRTIETH YEAR TREASURY BOND FUTURE CONTRACT DROPPED A BIT MORE THAN ONE EIGHTH POINT TO ONE HUNDRED FIFTEEN AND NINE THIRTY SECONDS AFTER TRADING BETWEEN ONE HUNDRED FIFTEEN AND EIGHT THIRTY SECONDS AND ONE HUNDRED FIFTEEN AND SEVENTEEN THIRTY SECONDS THE MARCH TENTH YEAR NOTE FUTURE CONTRACT DROPPED ONE EIGHTH POINT TO ONE HUNDRED THIRTEEN AND SEVEN THIRTY SECONDS TRADERS AT THE CHICAGO BOARD OF TRADE AND CHICAGO MERCANTILE EXCHANGE SAID VOLUME WAS LIGHT AND ACTIVITY FEATURELESS THE BOND FUTURES MARKET CLOSED AT ONE P. M. E. S. T. IN OBSERVANCE OF THE HOLIDAY A RALLY IN CRUDE OIL AND GOLD PRICES WERE CITED AS CONTRIBUTING FACTORS TO THE SLIGHT BEARISH TONE IN THE INTEREST RATE FUTURES FEBRUARY CRUDE OIL FUTURES ROSE THIRTY TWO CENTS A BARREL TO FIFTEEN DOLLARS AND TEN CENTS AFTER TRADING BETWEEN FOURTEEN DOLLARS AND SEVENTY EIGHT CENTS AND FIFTEEN DOLLARS AND TWENTY NINE CENTS FEBRUARY GOLD FUTURES ROSE TWO DOLLARS AND TEN CENTS AN OUNCE HIGHER TO THREE HUNDRED NINETY TWO DOLLARS AND TWENTY CENTS BOND FUTURES TRADERS SAID THEY DIDN'T SEE ANY REACTION TO THE NEWS OF THE LOS ANGELES EARTHQUAKE TRADERS SAID THEY WOULD EXPECT TO SEE A SELL OFF AS INSURANCE COMPANIES LIQUIDATE THEIR INVESTMENTS IN ORDER TO MAKE PAYMENTS IN OVERSEAS TRADING TREASURY BOND PRICES DROPPED SLIGHTLY THE BENCHMARK THIRTY YEAR BOND DROPPED NEARLY ONE QUARTER POINT FROM LATE FRIDAY IN NEW YORK OR NEARLY TWO DOLLARS AND FIFTY CENTS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO NINETY NINE AND SEVEN THIRTY SECONDS TO YIELD SIX POINT THREE ONE PERCENT UP FROM SIX POINT TWO NINE PERCENT THE TREASURY IS TO ANNOUNCE TOMORROW DETAILS OF ITS TWO YEAR AND FIVE YEAR NOTE AUCTIONS WHICH ARE SET FOR NEXT WEEK THE TREASURY'S WEEKLY AUCTION OF THREE MONTH AND SIX MONTH BILLS USUALLY HELD ON MONDAY WILL BE HELD TODAY BECAUSE OF THE MARTIN LUTHER KING HOLIDAY JAPAN'S NISSAN MOTOR COMPANY SAID IT WILL CONTINUE TO FURLOUGH WORKERS AT ITS DOMESTIC PLANTS IN THE FIRST HALF OF THE FISCAL YEAR STARTING APRIL FIRST AND THAT IT PLANS SEVERAL TEMPORARY SHUTDOWNS IN SOME OR ALL OF ITS FIVE MAIN PLANTS IN THE CURRENT HALF A SPOKESWOMAN SAID THAT DURING THE CURRENT HALF NISSAN ON SEVEN DAYS CLOSED SOME OR ALL OF ITS FOUR ASSEMBLY PLANTS AND ONE ENGINE PLANT SHE SAID THE COMPANY PLANS TO IDLE THEM AGAIN FOR TWO TO FIVE DAYS IN JANUARY AND FEBRUARY THE SPOKESWOMAN ADDED THAT THE NUMBER AND EFFECTS OF THE FURLOUGHS IN NEXT FISCAL YEAR'S FIRST HALF WILL BE SIMILAR TO THOSE IN THE CURRENT HALF MEANWHILE AT A NEWS CONFERENCE NISSAN PRESIDENT YOSHIFUMI TSUJI SAID THAT FREEZING WORKERS' PAY AT THIS YEAR'S LEVELS IS QUOTE ONE OF THE OPTIONS QUOTE FOR THE COMPANY WILLIAM L. THACKER JUNIOR PRESIDENT OF THIS NATURAL GAS PIPELINE COMPANY'S TEXAS EASTERN PRODUCTS PIPELINE UNIT WAS NAMED CHIEF EXECUTIVE OF THE UNIT MR. THACKER FORTY EIGHT SUCCEEDS CLIFFORD W. RACKLEY SEVENTY WHO REMAINS CHAIRMAN OF THE UNIT I. C. C. TECHNOLOGIES INCORPORATED SAID ITS SHAREHOLDERS APPROVED THE TRANSFER OF SUBSTANTIALLY ALL OF THE COMPANY'S ASSETS TO A JOINT VENTURE WITH ENGELHARD CORPORATION IN RETURN FOR A FIFTY PERCENT STAKE IN THE VENTURE WHICH WILL DEVELOP AIR CONDITIONING SYSTEMS I. C. C. TECHNOLOGIES A PHILADELPHIA MAKER OF AIR CONDITIONING SYSTEMS SAID ENGELHARD WILL CONTRIBUTE TEN MILLION DOLLARS AND PROVIDE CREDIT SUPPORT OF THREE MILLION DOLLARS ALONG WITH CERTAIN TECHNOLOGY RIGHTS TO THE JOINT VENTURE ENGELHARD OF ISELIN N. J. MAKES SPECIALTY CHEMICAL PRODUCTS AND OTHER MATERIALS AND ITS ABSORPTION MATERIALS WILL BE USED IN THE COOLING AND DEHUMIDIFICATION SYSTEMS DEVELOPED BY THE JOINT VENTURE WHEN THE TRANSACTION IS COMPLETED I. C. C. TECHNOLOGIES WILL BECOME PRINCIPALLY A HOLDING COMPANY WITH THE VENTURE STAKE AS ITS PRIMARY ASSET ITS STOCK WILL CONTINUE TO TRADE ON THE NASDAQ STOCK MARKET AS A SMALL CAPITALIZATION ISSUE THOMAS N. TYRRELL WAS NAMED A DIRECTOR OF THIS STEELMAKER MR. TYRRELL FORTY EIGHT YEARS OLD IS PRESIDENT OF AMERICAN STEEL AND WIRE CORPORATION WHICH BIRMINGHAM STEEL ACQUIRED IN NOVEMBER HE SUCCEEDS CHARLES M. PIGOTT SIXTY FOUR WHO DIDN'T STAND FOR RE ELECTION AT THE OCTOBER ANNUAL MEETING MR. PIGOTT IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PACCAR INCORPORATED JAPAN AIRLINES THE LARGEST AIRLINE IN JAPAN IS CONSIDERING BUYING SMALLER AIRPLANES FOR USE IN DOMESTIC AIRLINE ROUTES IN AN ATTEMPT TO GRAB A BIGGER MARKET SHARE IN JAPAN A SPOKESMAN SAID J. A. L. INTENDS TO BUY SMALLER AIRPLANES WITH ONE HUNDRED TO TWO HUNDRED SEATS TO IMPROVE PROFITABILITY ON DOMESTIC ROUTES WHERE DEMAND ISN'T SO STRONG HOWEVER THE SPOKESMAN SAID SUCH DETAILS AS WHAT TYPE OF AIRCRAFT WHEN THE AIRCRAFT WILL BE INTRODUCED AND THE TOTAL PURCHASING COSTS HAVEN'T BEEN DECIDED CURRENTLY J. A. L. OPERATES THREE TYPES OF AIRCRAFT ON THIRTY ONE DOMESTIC ROUTES BOEING SEVEN FORTY SEVENS WHICH HAVE FIVE HUNDRED SIXTY EIGHT SEATS EACH D. C. TENS WITH THREE HUNDRED EIGHTEEN SEATS AND BOEING SEVEN SIXTY SEVENS WITH TWO HUNDRED SEVENTY SEATS INTERNATIONAL FLIGHTS ACCOUNT FOR SEVENTY PERCENT OF J. A. L.'S REVENUE BUT PLANS DEPEND ON INCREASING DOMESTIC OPERATIONS TO FORTY PERCENT FROM THE CURRENT THIRTY PERCENT TO OFFSET LOSSES DUE TO CURRENCY MOVEMENTS AT THE SAME TIME THE COMPANY IS PLANNING TO EXPAND DOMESTIC MARKET SHARE TO THIRTY THREE PERCENT FROM THE CURRENT TWENTY TWO PERCENT WALTER J. SALMON SIXTY THREE YEARS OLD WAS ELECTED A DIRECTOR OF THIS MAKER OF HAND HELD PORTABLE COMPUTER SYSTEMS DOCTOR SALMON IS A PROFESSOR OF RETAILING AT THE HARVARD GRADUATE SCHOOL OF BUSINESS ADMINISTRATION HIS SELECTION RAISES THE NUMBER OF BOARD MEMBERS TO SEVEN MAZDA MOTOR CORPORATION SAID IT EXPECTS DOMESTIC SALES FOR NINETEEN NINETY FOUR TO REBOUND SEVEN POINT EIGHT PERCENT FROM LAST YEAR BUT EXPORTS TO EDGE DOWN ONE POINT SIX PERCENT DOMESTIC SALES WOULD BE FOUR HUNDRED FORTY THOUSAND UP FROM LAST YEAR'S FOUR HUNDRED EIGHT THOUSAND WHICH WAS OFF SIXTEEN PERCENT FROM THE YEAR BEFORE EXPORTS WOULD BE SIX HUNDRED SEVENTY THOUSAND DOWN FROM SIX HUNDRED EIGHTY ONE THOUSAND WHICH WAS OFF FIFTEEN PERCENT FROM THE YEAR BEFORE MAZDA WHICH IS TWENTY FIVE PERCENT OWNED BY FORD MOTOR COMPANY ALSO FORECAST THAT TOTAL PRODUCTION WILL INCREASE SEVEN POINT THREE PERCENT TO ONE POINT ONE MILLION UNITS LAST YEAR PRODUCTION WAS DOWN TWENTY PERCENT FUMIHIKO ARAKAWA MAZDA'S SENIOR MANAGING DIRECTOR IN CHARGE OF DOMESTIC MARKETING AND SALES SAID THE COMPANY EXPECTS DEMAND FOR AUTOS IN JAPAN WILL PICK UP IN THE SECOND HALF WITH HELP FROM PROSPECTIVE FURTHER FISCAL STIMULUS BY THE GOVERNMENT MR. ARAKAWA ALSO BELIEVES THAT CONSUMERS AFTER HOLDING BACK ON PURCHASES WILL SOON NEED TO REPLACE OLDER CARS MANY BUSINESSES WITH OPERATIONS IN LOS ANGELES WERE DISRUPTED BY THE EARTHQUAKE COMPANIES SHUT PLANTS AND OFFICES RETAILERS REPORTED HEAVY DAMAGE TO SOME STORES AND AIRLINES CANCELED OR DELAYED FLIGHTS BUT THE DAMAGE APPARENTLY WASN'T WIDESPREAD WHILE BUSINESSES CLOSE TO THE QUAKE'S EPICENTER WERE HIT HARD OFFICES JUST TWENTY MILES AWAY WERE UNTOUCHED ALSO THE EARTHQUAKE OCCURRED AT FOUR THIRTY ONE A. M. P. S. T. A TIME WHEN TRAFFIC WAS LIGHT AND ON A DAY WHEN MANY WORKERS WERE OFF FOR THE MARTIN LUTHER KING JUNIOR HOLIDAY NEVERTHELESS IT WAS DIFFICULT TO ASSESS THE FULL EXTENT OF THE DAMAGE AND IT WASN'T CLEAR WHEN MANY BUSINESSES WOULD GET BACK TO NORMAL THE LOCAL PHONE NETWORK EMERGED FROM THE QUAKE RELATIVELY INTACT BUT CALLING INTO AND OUT OF THE AREA WAS DIFFICULT TO IMPOSSIBLE THROUGHOUT THE DAY BECAUSE OF THE HEAVY VOLUME OF CALLING MANY COMPANIES HAD DIFFICULTY CONTACTING THEIR OPERATIONS IN THE LOS ANGELES AREA RETAILERS WERE HIT PARTICULARLY HARD R. H. MACY AND COMPANY REPORTED EXTENSIVE DAMAGE AT ITS STORES IN LOS ANGELES IT SAID EIGHT DEPARTMENT STORES IN ITS BULLOCK'S CHAIN WERE HIT WITH THE NORTHRIDGE MALL STORE AT THE VERY EPICENTER OF THE QUAKE A MACY SPOKESWOMAN SAID THAT STORE SUFFERED EXTENSIVE STRUCTURAL DAMAGE AND SPRINKLERS THAT WENT OFF IN THE STORE DAMAGED SOME MERCHANDISE MACY SAID NONE OF ITS EMPLOYEES WERE INJURED THOUGH ALL EIGHT OF THE STORES REMAINED CLOSED YESTERDAY DAYTON HUDSON CORPORATION SAID TEN OF ITS MERVYN'S DEPARTMENT STORES AND FROM SIX TO TWELVE OF ITS TARGET DISCOUNT STORES WERE DAMAGED A SPOKESWOMAN SAID FIVE MERVYN'S STORES SUSTAINED QUOTE A GREAT DEAL OF DAMAGE QUOTE INCLUDING BUCKLED WALLS FALLEN CEILING TILE AND WATER DAMAGE FROM SPRINKLERS WHILE TWO TARGET STORES HAD MAJOR STRUCTURAL DAMAGE TWO EMPLOYEES AT A TARGET STORE IN VALENCIA WERE INJURED WHEN STOCKROOM SHELVING TOPPLED OVER ON THEM THE SPOKESWOMAN SAID THEY WERE TAKEN TO AN AREA HOSPITAL BY AMBULANCE BUT THAT SHE DIDN'T KNOW THE EXTENT OF THEIR INJURIES AT ONE TARGET STORE IN GRANADA HILLS NINETY EIGHT PERCENT OF THE CEILING TILE HAD FALLEN THAT WOULD MEAN A LOT OF MERCHANDISE ON THE SHELVES IS ALSO DOWN THE SPOKESWOMAN ADDED SEARS ROEBUCK AND COMPANY SAID TEN OF ITS TWENTY SEVEN LOS ANGELES AREA STORES SUFFERED DAMAGE AND EIGHT REMAINED CLOSED YESTERDAY IT SAID ANOTHER WAS CLOSED BECAUSE OF LACK OF POWER A SPOKESMAN FOR CARTER HAWLEY HALE STORES INCORPORATED SAID MANY IF NOT ALL OF THE COMPANY'S ELEVEN STORES IN THE AREA WERE CLOSED AS WAS THE LOS ANGELES HEADQUARTERS IN THE LOS ANGELES BASIN POWER OUTAGES SWEPT THROUGHOUT MUCH OF THE AREA AS TRANSMISSION SUBSTATIONS TRANSFORMERS AND POWER LINES WENT DOWN OFFICIALS AT SOUTHERN CALIFORNIA EDISON THE UTILITY OPERATING UNIT OF S. C. E. CORPORATION INITIALLY REPORTED SEVEN HUNDRED FIFTY THOUSAND OF ITS APPROXIMATELY FOUR MILLION CUSTOMERS WITHOUT POWER S. C. E.'S SERVICE TERRITORY SURROUNDS LOS ANGELES STRETCHING TO THE NEVADA AND ARIZONA BORDERS THE COMPANY SAID ITS KEY PARDEE SUBSTATION WHICH SERVES SEVERAL HUNDRED THOUSAND CUSTOMERS HAD BEEN HIT VERY HARD BY MIDAFTERNOON ONE HUNDRED TWENTY FIVE THOUSAND OF THE UTILITY'S CUSTOMERS HAD REGAINED POWER BUT A SPOKESWOMAN SAID UNTIL PHYSICAL INSPECTIONS OF DAMAGED AREAS HAD BEEN COMPLETED IT WOULD BE DIFFICULT TO ESTIMATE WHEN POWER WOULD BE RESTORED TO ALL ITS CUSTOMERS SOUTHERN CALIFORNIA GAS SAID OUTAGES AND DAMAGES CENTERED ON THE NORTHWEST SECTOR OF LOS ANGELES COUNTY WITH ABOUT EIGHT HUNDRED TO ONE THOUSAND TWO HUNDRED HOMES WITHOUT SERVICE AT MIDDAY THE GAS UTILITY SAID FOUR TRANSMISSION PIPELINES AND TWENTY DISTRIBUTION LINES AND NUMEROUS SERVICE LINES HAD SUSTAINED DAMAGE THE COMPANY SAID ALL GAS BREAKS WERE UNDER CONTROL BY EARLY AFTERNOON THE EARTHQUAKE ALSO RATTLED THE INTERWOVEN ELECTRICITY GRID SYSTEM CAUSING SCATTERED OUTAGES AS FAR NORTH AS ALBERTA AND BRITISH COLUMBIA IN IDAHO ABOUT ONE HUNDRED TEN THOUSAND CUSTOMERS LOST POWER FOR THREE HOURS AS THE GRID SOUGHT TO CORRECT LOAD PROBLEMS STEMMING FROM THE QUAKE COMMUNICATIONS COMPANIES WERE BURDENED BY THE HEAVY VOLUME OF CALLERS IN SOME CASES LOS ANGELES RESIDENTS HAD TO WAIT THIRTY SECONDS OR MORE TO GET A DIAL TONE INCOMING CALLERS OFTEN FOUND THEMSELVES LISTENING TO A RECORDING INDICATING THAT ALL CIRCUITS WERE BUSY THERE WERE REPORTS OF SOME SCATTERED BREAKS IN THE NETWORK THAT CAUSED SOME AREAS TO LOSE PHONE SERVICE BY LATE AFTERNOON PACIFIC BELL SAID MOST AREAS HAD FULL PHONE SERVICE RESTORED PACIFIC BELL WHICH HAS ABOUT THREE POINT FIVE MILLION CUSTOMERS IN THE AFFECTED AREA ASKED THE LONG DISTANCE COMPANIES AMERICAN TELEPHONE AND TELEGRAPH COMPANY M. C. I. COMMUNICATIONS CORPORATION AND SPRINT CORPORATION TO RESTRICT INCOMING CALLING INTO SOUTHERN CALIFORNIA TO HELP KEEP LINES OPEN FOR EMERGENCY OUTGOING CALLS A. T. AND T. SAID IT LOST SOME LONG DISTANCE SERVICES INTO AND OUT OF PARTS OF LOS ANGELES DUE TO EQUIPMENT DAMAGE AND POWER FAILURE CAUSED BY THE QUAKE UNTIL EQUIPMENT WAS BACK IN SERVICE A. T. AND T. WAS ASSISTING CUSTOMERS IN PLACING CALLS AND PROVIDING ACCESS CODES SO THAT CUSTOMERS COULD PLACE THEIR CALLS OVER THE NETWORKS OF OTHER COMPANIES INCLUDING RIVALS M. C. I. AND SPRINT WHICH REPORTED NO NETWORK OUTAGES TRANSPORTATION COMPANIES ALSO WERE AFFECTED AS THE EARTHQUAKE COLLAPSED HIGHWAYS AND DAMAGED RAIL LINES THE LOS ANGELES INTERNATIONAL AIRPORT WAS CLOSED FOR ABOUT TWO HOURS DISRUPTING MANY FLIGHTS OTHER AREA AIRPORTS ALSO WERE BRIEFLY CLOSED U. A. L. CORPORATION'S UNITED AIRLINES SAID IT CANCELED AT LEAST FORTY FLIGHTS STEMMING FROM THE EARTHQUAKE U. S. AIR GROUP INCORPORATED'S U. S. AIR SAID ONE OF ITS JETWAYS AT THE AIRPORT WAS TWISTED A LITTLE BIT AND ITS TERMINAL LOST A FEW CEILING TILES BUT BOTH AIRLINES SAID THEY BELIEVED BAD WEATHER ON THE EAST COAST WOULD RESULT IN EVEN BIGGER DELAYS THE EARTHQUAKE SHUT INTERSTATE HIGHWAY FIVE THE PRIMARY TRAFFIC ARTERY BETWEEN NORTHERN AND SOUTHERN CALIFORNIA WHEN A SECTION OF ROAD COLLAPSED AT AN INTERSECTION THE CLOSURE CREATED LENGTHY DETOURS AND DELAYS FOR TRUCKERS WE HAVE TO REROUTE FREIGHT TO THE EAST AND NORTH A COUPLE HUNDRED MILE DETOUR SAID A SPOKESMAN FOR CONSOLIDATED FREIGHTWAYS INCORPORATED WE'LL MOVE THE FREIGHT BUT NOT WITHOUT EXPENSE AND NOT WITHOUT TROUBLE HE SAID SOUTHERN PACIFIC LINES A UNIT OF SOUTHERN PACIFIC RAIL CORPORATION SAID A QUOTE SUBSTANTIAL SHIFT IN TRACK QUOTE NEAR THE EPICENTER OF THE EARTHQUAKE DERAILED ONE TRAIN THE COMPANY SAID THERE WERE NO INJURIES AMONG THE DERAILED CARS WERE SIXTEEN TANK CARS THAT SPILLED FIVE THOUSAND GALLONS OF SPILLED SULFURIC ACID AND THREE THOUSAND GALLONS OF SPILLED DIESEL FUEL THE COMPANY SAID VACUUM TRUCKS WERE DISPATCHED TO THE SCENE BUT IMPORTANT EAST WEST TRANSCONTINENTAL RAIL LINKS TO THE AREA ESCAPED THE EARTHQUAKE WITH ONLY MINOR DELAYS AND ARE EXPECTED TO RETURN TO NORMAL OPERATIONS TODAY RAILROAD OFFICIALS SAID THE OIL REFINING INDUSTRY OF CALIFORNIA THE NATION'S THIRD LARGEST BEHIND TEXAS AND LOUISIANA WAS LARGELY UNHARMED ALTHOUGH SEVERAL PLANTS LOST POWER AND MANY PIPELINES SHUT DOWN THE WHITE HOUSE SAID THE GOVERNMENT WILL DECIDE IN LATE SUMMER OR EARLY FALL WHICH CITIES AND RURAL AREAS WILL GET THREE POINT FIVE BILLION DOLLARS IN FEDERAL TAX CREDITS AND GRANTS AS PART OF A PLAN TO REVIVE ECONOMICALLY BLIGHTED AREAS VICE PRESIDENT AL GORE SAID THE SELECTIONS COMING JUST IN TIME FOR MID TERM ELECTIONS WILL GRACE FIVE LARGE CITIES ONE MID SIZED CITY AND THREE RURAL AREAS AS PART OF LEGISLATION PASSED IN LAST YEAR'S DEFICIT REDUCTION PACKAGE THE SO CALLED QUOTE EMPOWERMENT ZONES QUOTE WILL SHARE TWO POINT FIVE BILLION DOLLARS IN TAX INCENTIVES MOSTLY WAGE CREDITS TO THOSE WHO HIRE RESIDENTS OF THE ZONES AND SOCIAL SERVICE GRANTS TOTALING SEVEN HUNDRED TWENTY MILLION DOLLARS THEY ALSO WILL GET AUTHORITY TO FINANCE A VARIETY OF BUSINESSES WITH SPECIAL TAX EXEMPT BONDS ANOTHER NINETY FIVE ENTERPRISE COMMUNITIES WILL SHARE TWO HUNDRED EIGHTY MILLION DOLLARS IN GRANTS AND AUTHORITY TO USE THE SPECIAL BOND RULES PRESIDENT CLINTON IN ANNOUNCING THE AVAILABILITY OF APPLICATIONS FOR THE AID PROGRAM CALLED IT A NEW COMPACT TO HELP DISTRESSED COMMUNITIES THE PROGRAM DIFFERS FROM LONG STANDING REPUBLICAN MODELS FOR ENTERPRISE ZONES WHICH RELIED ON TAX BREAKS FOR HUNDREDS OF AREAS AND CAPITAL GAINS TAX RELIEF TO INVESTORS IN THE ZONES I AM VERY CONCERNED THAT THE ARTICLE BY THE HERITAGE FOUNDATION'S DANIEL J. MITCHELL DISTORTS THE POSITION OF OFFICE OF MANAGEMENT AND BUDGET ANALYSTS WITH REGARD TO THE PRESIDENT'S HEALTH REFORM PLAN QUOTE PRESIDENT'S COSTLY BUDGET BUSTER QUOTE EDITORIAL PAGE DECEMBER TWENTY THIRD O. M. B. ANALYSTS HELPED DEVELOP THE PLAN'S FINANCING AND HAVE CONFIRMED ITS SOUNDNESS MOREOVER THE MOST AUTHORITATIVE OUTSIDE STUDY OF THE HEALTH SECURITY ACT CONDUCTED BY LEWIN VHI AN INDEPENDENT CONSULTING GROUP WITH SPECIFIC EXPERTISE ON HEALTH CARE ISSUES HAS VERIFIED THAT THE PLAN'S FINANCING WORKS AND WILL REDUCE THE DEFICIT OVER THE PERIOD FROM NINETEEN NINETY FIVE TO TWO THOUSAND THE SECRET TABLES ON WHICH MR. MITCHELL BASES HIS ARTICLE WERE NOTHING MORE THAN SPECULATIVE COMPUTER SPREADSHEETS PREPARED BY AN ANALYST AT AN EARLY STAGE IN THE DRAFTING OF THE HEALTH SECURITY ACT PURELY THEORETICAL THEY APPLIED WHAT IF SCENARIOS TO SOME OF THE ELEMENTS OF EARLY VERSIONS OF THE HEALTH REFORM PLAN UNDER DISCUSSION LAST SUMMER ESSENTIALLY THE TABLES ANSWERED A SERIES OF HYPOTHETICAL QUESTIONS WHAT IF WE CHOOSE THIS OR THAT POLICY WHAT IF OUR ESTIMATES ARE TOO HIGH OR TOO LOW UNCERTAINTIES IDENTIFIED BY THIS EXERCISE WERE THEN THOROUGHLY ADDRESSED IN THE FINAL DRAFTING OF THE LEGISLATION THEREFORE THE TABLES DO NOT APPLY TO THE LEGISLATION NOW BEFORE THE CONGRESS AND ARE NOT RELEVANT TO ANY DISCUSSION OF THAT PLAN INTERESTINGLY MR. MITCHELL DOES NOT MENTION THE FACT THAT THE WHAT IF SCENARIOS IN THE TABLE INCLUDED ASSUMPTIONS THAT RESULTED IN LOWER COSTS AND MUCH GREATER DEFICIT REDUCTION THOSE SCENARIOS WERE CLEARLY DELINEATED IN THE TABLES BUT MR. MITCHELL CHOSE TO IGNORE THEM APPARENTLY THEY DID NOT FIT INTO HIS AGENDA THE HEALTH SECURITY ACT CONTAINS A NUMBER OF SPECIFIC MEASURES TO ADDRESS COST UNCERTAINTIES FOR EXAMPLE A FIFTEEN PERCENT CUSHION WAS ADDED TO THE ESTIMATES OF THE DISCOUNTS TO BE PROVIDED TO SMALL LOW WAGE FIRMS AND LOW INCOME WORKERS BEYOND THAT WHATEVER FISCAL RISK REMAINS IS CONTAINED BY SPECIFIC LANGUAGE IN THE ACT CAPPING FEDERAL EXPENDITURES IN THE UNLIKELY EVENT THAT THOSE CAPS ARE BREACHED A FUTURE ACT OF CONGRESS WOULD BE NECESSARY TO SPEND MORE MONEY MR. MITCHELL DISMISSES THIS IMPLYING THAT CONGRESS MIGHT NOT ENACT THE DISCIPLINES PROPOSED BY THE PRESIDENT BUT THAT IS NO GROUND FOR CRITICIZING THE PLAN ITSELF ANY LEGISLATIVE PROPOSAL EVEN ONE ENDORSED BY THE HERITAGE FOUNDATION CAN BE ALTERED BY CONGRESS IN A WAY THE AUTHOR MIGHT DISAPPROVE SOUTHDOWN INCORPORATED SAID IT EXPECTS TO REPORT THAT IT BROKE EVEN IN THE FOURTH QUARTER BEFORE ONE TIME CHARGES TOTALING ABOUT FOUR MILLION DOLLARS THE HOUSTON BASED CEMENT AND CONCRETE COMPANY SAID THAT AFTER PROVIDING FOR THE PAYMENT OF PREFERRED STOCK DIVIDENDS THE COMPANY WOULD REPORT A LOSS OF FIVE TO TEN CENTS A SHARE BEFORE THE CHARGES FOR NINETEEN NINETY TWO'S FOURTH QUARTER SOUTHDOWN HAD A LOSS OF TWENTY SIX POINT FIVE MILLION DOLLARS OR ONE DOLLAR AND SIXTY FOUR CENTS A SHARE AFTER A TWENTY ONE POINT FOUR MILLION DOLLAR CHARGE RELATED TO THE WRITE DOWN OF THE COMPANY'S ENVIRONMENTAL SERVICES ASSETS YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SOUTHDOWN CLOSED AT TWENTY FOUR POINT EIGHT SEVEN FIVE DOLLARS UP ONE POINT ONE TWO FIVE DOLLARS OR FOUR POINT SEVEN PERCENT ON VOLUME OF TWO HUNDRED FIFTY ONE THOUSAND SEVEN HUNDRED SHARES THE U. S. IS PUSHING JAPAN TO AGREE TO INCREASE ITS PURCHASES OF U. S. MADE AUTO PARTS BY ABOUT TWENTY PERCENT A YEAR AS THE ADMINISTRATION BROADENS ITS PRESSURE ON JAPAN TO MOVE ON STALLED TRADE TALKS THE U. S. POSITION UNDERSCORES A HARDLINE STRATEGY FOR GETTING JAPAN TO AGREE TO TARGETS FOR INCREASING U. S. IMPORTS MAKING JAPAN CHOOSE BETWEEN AN AGREEMENT OR A BLOWUP IN RELATIONS WITH ITS MOST IMPORTANT ALLY JAPAN HAS RESISTED THE CALL FOR TARGETS SO FAR LEAVING THE TALKS STALEMATED THE U. S. HAS INDICATED IT WOULD COMPROMISE ON ISSUES IT CONSIDERS OF SECONDARY IMPORTANCE PART OF THE U. S. STRATEGY CALLS FOR GOING OVER THE HEADS OF JAPANESE BUREAUCRATS WHOM THE U. S. BLAMES FOR BLOCKING PROGRESS ON THE SO CALLED FRAMEWORK NEGOTIATIONS TO THAT END TREASURY SECRETARY LLOYD BENTSEN IS PLANNING TO MEET WITH JAPANESE FINANCE MINISTER HIROHISA FUJII ON SUNDAY THE U. S. WANTS THE JAPANESE GOVERNMENT WHICH NOW IS CONSUMED WITH A BATTLE OVER POLITICAL REFORM TO FOCUS ON TRADE ISSUES AS WELL AND TO FOLLOW THROUGH ON EARLIER PLEDGES TO STIMULATE THE ECONOMY THE U. S. WANTS AGREEMENT ON THESE ISSUES BEFORE PRIME MINISTER MORIHIRO HOSOKAWA VISITS PRESIDENT CLINTON IN WASHINGTON ON FEBRUARY ELEVENTH QUOTE THE MESSAGE THAT SECRETARY BENTSEN WILL BE CARRYING IS THE FRAMEWORK TALKS ARE IMPORTANT TO OUR RELATIONSHIP AND NEED TO BE SUCCESSFUL QUOTE SAID U. S. TRADE REPRESENTATIVE MICKEY KANTOR SPEAKING IN WASHINGTON JEFFREY GARTEN UNDERSECRETARY OF COMMERCE FOR INTERNATIONAL TRADE SAID THE U. S. HAD INFORMED JAPAN THAT IT EXPECTS THE RECENT GROWTH IN AUTO PARTS PURCHASES BY JAPANESE COMPANIES TO CONTINUE ON ITS UPWARD SLANT FOR THE YEAR ENDING MARCH THIRTY FIRST NINETEEN NINETY FIVE JAPANESE CAR MAKERS HAVE PLEDGED TO BUY NINETEEN BILLION DOLLARS OF U. S. AUTO PARTS UP FROM NINE BILLION DOLLARS FOR THE YEAR ENDED MARCH THIRTY FIRST NINETEEN NINETY ONE THE TREND LINE IS ABOUT TWENTY PERCENT HE SAID ALTHOUGH THE U. S. EXPECTED THAT THE ACTUAL RESULTS WOULD VARY FROM THAT FIGURE DEPENDING ON THE STATE OF THE JAPANESE AUTO INDUSTRY THE U. S. IS PRESSING JAPAN TO AGREE TO ANNUAL INCREASES OF ABOUT TWENTY PERCENT OVER THE NEXT THREE OR FOUR YEARS THE FRAMEWORK TALKS HAVE DEADLOCKED OVER THE U. S. INSISTENCE THAT JAPAN AGREE TO TARGETS FOR ITS PURCHASES OF U. S. GOODS JAPANESE NEGOTIATORS MAINTAIN THAT THE U. S. POSITION SMACKS OF MANAGED TRADE AND THEY SAY THAT THE U. S. AUTO PARTS INDUSTRY HAS PROBLEMS IN JAPAN BECAUSE OF POOR QUALITY GOODS THE U. S. ARGUES THAT CLEARLY STATED TARGETS ARE NECESSARY OTHERWISE THE U. S. AND JAPAN WILL ENDLESSLY DEBATE THEIR TRADE DIFFERENCES WITHOUT MAKING ANY REAL PROGRESS AT THE SAME TIME MR. GARTEN SIGNALED THAT THE U. S. IS BACKING OFF FROM SEVERAL OF THE MOST CONTROVERSIAL DEMANDS IT HAS MADE OF JAPAN IN THE AUTO TALKS IN AN OCTOBER PROPOSAL TO JAPAN THE U. S. URGED THAT SPECIAL CONSIDERATION BE GIVEN BY JAPANESE CAR MAKERS TO NON JAPANESE U. S. AUTO PARTS MR. GARTEN WHO ENTERED OFFICE AFTER THE PROPOSAL WAS MADE SAYS THE U. S. MERELY WANTS TO COLLECT SEPARATE DATA ON U. S. OWNED AND JAPANESE OWNED AUTO PARTS MAKERS IN THE U. S. BUT NOT FAVOR THE U. S. OWNED ONES A NUMBER OF U. S. LAWMAKERS FROM STATES WITH JAPANESE OWNED AUTO PARTS PLANTS INCLUDING REPRESENTATIVES BUTLER DERRICK D. S. C. JOHN DUNCAN R. TENNESSEE PHILIP CRANE R. ILLINOIS JOE KNOLLENBERG R. MICHIGAN AND JOHN TANNER D. TENNESSEE HAVE WRITTEN PRESIDENT CLINTON COMPLAINING THAT THE ORIGINAL PROPOSAL JEOPARDIZES THE EXISTING EMPLOYMENT OF U. S. WORKERS IN JAPANESE FACTORIES IN ADDITION MR. GARTEN SAID THAT THE U. S. WASN'T LOOKING FOR THE JAPANESE GOVERNMENT TO ORDER MANUFACTURERS TO BUY MORE U. S. PARTS THE OCTOBER PROPOSAL HAD CALLED FOR JAPANESE BUREAUCRATS TO ISSUE GUIDANCE TO CAR MAKERS CONCERNING THEIR PURCHASES MR. GARTEN NOW SAYS HE IS INVOLVED IN INTENSIVE NEGOTIATIONS WITH JAPAN'S LEADING CAR MAKERS AND AUTO TRADE GROUPS AS WELL AS JAPAN'S TRADE NEGOTIATORS TO GET THE COMPANIES TO COMMIT TO GREATER PURCHASES HE CALLED THOSE TALKS QUOTE EXTREMELY CONSTRUCTIVE QUOTE ALTHOUGH HE ADDED THAT THE COMPANIES HADN'T QUOTE COMMITTED TO ANYTHING QUOTE YET MR. BENTSEN IS IN THE MIDST OF VISITING INDONESIA THAILAND AND CHINA TO PROMOTE FREER TRADE THE TREASURY SECRETARY WANTS TO OFFER ASIA AN ALTERNATIVE TO REGIONAL ECONOMIC HEGEMONY BY JAPAN AND PERHAPS CHINA IN THE FUTURE THIS ADMINISTRATION RECOGNIZES THAT THERE IS MORE TO ASIA THAN JAPAN MR. BENTSEN TOLD THE INDONESIA ECONOMISTS ASSOCIATION BUT MR. BENTSEN'S LIKELY VISIT WITH MR. FUJII SHOWS THAT THE U. S. REMAINS PREOCCUPIED WITH JAPAN THE U. S. HAS A TRADE DEFICIT WITH JAPAN OF ABOUT FIFTY TWO BILLION DOLLARS A YEAR APART FROM JAPAN THE U. S. IS TRYING TO BUILD STRONGER RELATIONS WITH THE FAST GROWING ASIAN COUNTRIES THAT COULD BE LARGE CUSTOMERS OF U. S. PRODUCTS AND SERVICES FOR EXAMPLE INDONESIA ESTIMATES THAT IT WILL SPEND ONE HUNDRED THIRTEEN BILLION DOLLARS ON INFRASTRUCTURE BEFORE THE END OF THIS DECADE U. S. BANKS AND BROKERS WANT TO HELP FINANCE THE PROJECTS AND U. S. MANUFACTURERS WANT TO COMPETE TO PROVIDE THE NEW TELECOMMUNICATIONS TRANSPORTATION AND OTHER IMPROVEMENTS INDONESIA NEEDS BUT INDONESIA AND MANY OTHER EMERGING MARKETS RESTRICT ACCESS BY U. S. FIRMS THE EMERGING MARKETS OF ASIA ARE PARTICULARLY IMPORTANT TARGETS OF U. S. ECONOMIC DIPLOMACY BECAUSE RAPID GROWTH AND HIGH INVESTMENT NEEDS MAKE THEM GOOD TARGETS FOR U. S. EXPORTS EXPORT EXPANSION HAS ACCOUNTED FOR ALMOST ALL THE GROWTH IN U. S. MANUFACTURING JOBS IN THE LAST DECADE AS ONE SIGN OF EXPANDING INTEREST IN ASIAN TRADE MR. BENTSEN SUGGESTED THAT THE U. S. MAY BE ABOUT TO LIFT ITS TRADE EMBARGO AGAINST VIETNAM I THINK YOU'LL SEE SOMETHING FORTHCOMING SOON HE TOLD THE AMERICAN CHAMBER OF COMMERCE IN INDONESIA GEORGE WESTON LIMITED SAID IT AGREED TO SELL TO UNDERWRITERS TWO HUNDRED MILLION CANADIAN DOLLARS ONE HUNDRED FIFTY ONE MILLION U. S. DOLLARS OF TEN YEAR SEVEN POINT FOUR FIVE PERCENT UNSECURED DEBENTURES THE DEBENTURES WILL BE RESOLD TO THE PUBLIC BY THE UNDERWRITING GROUP LED BY BURNS FRY LIMITED GEORGE WESTON A FOOD PROCESSING CONCERN SAID IT WILL USE THE PROCEEDS TO RETIRE COMMERCIAL PAPER OUTSTANDING SWEDISH TELECOMMUNICATIONS GROUP TELEFON A. B. L. M. ERICSSON SAID ITS ERICSSON COMMUNICATIONS THAILAND LIMITED SUBSIDIARY HAS BEEN SELECTED BY THAILAND'S ADVANCED INFO SERVICES LIMITED AS ITS MAJOR SUPPLIER OF QUOTE GSM QUOTE EQUIPMENT GSM STANDS FOR GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS THE INITIAL ORDER IS VALUED AT ONE HUNDRED MILLION KRONOR TWELVE POINT TWO MILLION DOLLARS ERICSSON SAID ADDING THAT IT INCLUDES SWITCHING EQUIPMENT BASE TRANSCEIVER STATIONS AND A NETWORK MANAGEMENT SYSTEM THE COMMUNICATIONS SYSTEM IN BANGKOK WILL BE IN OPERATION IN MARCH AND AIS IS PLANNING TO COVER ALL MAJOR PARTS OF THAILAND BY YEAR'S END ERICSSON SAID THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JANUARY FOURTEENTH NINETEEN NINETY FOUR 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 GARFIELD COUNTY COLORADO WILL OPTIONALLY REDEEM ON FEBRUARY FIFTEENTH NINETEEN NINETY FOUR ITS RESIDENTIAL MORTGAGE REVENUE BONDS SERIES NINETEEN EIGHTY A. CONTINENTAL BANK CHICAGO IS TRUSTEE LAKEWOOD TOWNSHIP MUNICIPAL UTILITIES AUTHORITY WILL REDEEM ON FEBRUARY FIFTEENTH NINETEEN NINETY FOUR ITS SIX POINT ONE OH PERCENT REVENUE BONDS SERIES A DUE NOVEMBER FIRST TWO THOUSAND SIX UNITED JERSEY BANK HACKENSACK N. J. IS ESCROW AGENT MOFFAT COUNTY COLORADO WILL REDEEM ON FEBRUARY FIFTEENTH NINETEEN NINETY FOUR SIX HUNDRED SEVENTY THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS SINGLE FAMILY MORTGAGE REVENUE BONDS SERIES A DUE FEBRUARY FIFTEENTH NINETEEN NINETY FIVE TWO THOUSAND ONE AND TWO THOUSAND TWELVE CONTINENTAL BANK CHICAGO IS TRUSTEE NEWARK HOUSING FINANCE CORPORATION WILL REDEEM ON FEBRUARY FIFTEENTH NINETEEN NINETY FOUR FIFTEEN THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS TWELVE PERCENT MORTGAGE REVENUE BONDS DUE FEBRUARY FIFTEENTH TWO THOUSAND TWENTY FOUR UNITED JERSEY BANK HACKENSACK N. J. IS SUCCESSOR TRUSTEE NEW YORK STATE ATOMIC AND SPACE DEVELOPMENT AUTHORITY WILL REDEEM ON MARCH FIRST NINETEEN NINETY FOUR FOUR HUNDRED FORTY THOUSAND DOLLAR PRINCIPAL AMOUNT OF ITS SIX POINT ONE TWO FIVE PERCENT GENERAL FACILITIES BONDS SERIES A DUE MARCH FIRST TWO THOUSAND TWO MANUFACTURERS AND TRADERS TRUST COMPANY BUFFALO N. Y. IS TRUSTEE PALM BEACH COUNTY HEALTH FACILITIES AUTHORITY WILL REDEEM ON FEBRUARY SIXTEENTH NINETEEN NINETY FOUR ITS FIRST MORTGAGE HOSPITAL REVENUE BONDS SERIES NINETEEN SEVENTY EIGHT DUE JULY FIRST OF THE INDICATED YEARS SEVEN POINT OH FIVE PERCENT DUE NINETEEN NINETY FOUR AND NINETEEN NINETY FIVE SEVEN POINT ONE OH PERCENT DUE NINETEEN NINETY SIX AND NINETEEN NINETY SEVEN AND SEVEN POINT FIVE OH PERCENT DUE TWO THOUSAND EIGHT CHEMICAL BANK NEW YORK IS TRUSTEE INDIANA MICHIGAN POWER COMPANY WILL REDEEM ON FEBRUARY THIRTEENTH NINETEEN NINETY FOUR ITS SEVEN POINT SEVEN SIX PERCENT CUMULATIVE PREFERRED STOCK FIRST CHICAGO TRUST COMPANY OF NEW YORK IS REDEMPTION AGENT PUGET SOUND POWER AND LIGHT COMPANY WILL REDEEM ON FEBRUARY FOURTEENTH NINETEEN NINETY FOUR ITS FOUR AND THREE QUARTERS PERCENT SERIES FIRST MORTGAGE BONDS DUE MAY FIRST NINETEEN NINETY FOUR PUGET SOUND POWER AND LIGHT BELLEVUE WASHINGTON AND BANCBOSTON TRUST COMPANY OF NEW YORK ARE PAYING AGENTS JAPAN'S CABINET MOVED TO CLEAR AWAY ONE OF THE MOST NETTLESOME TRADE DISPUTES WITH THE U. S. ENDORSING A BROAD RANGING PLAN TO OPEN THE NATION'S PUBLIC WORKS MARKET TO FOREIGN CONSTRUCTION COMPANIES THE NEW GOVERNMENT PLAN REPLACES JAPAN'S UNIQUE CLOSED BIDDING PROCEDURES ON LARGE SCALE PROJECTS WITH A MORE U. S. STYLE QUOTE OPEN BIDDING QUOTE IN WASHINGTON U. S. OFFICIALS SAID THAT THEY HAD BEGUN A PRELIMINARY REVIEW OF THE CONSTRUCTION PLAN AND THAT IT APPEARED TO ADDRESS MOST MAJOR U. S. CONCERNS THE CLINTON ADMINISTRATION HAD THREATENED TO IMPOSE SANCTIONS AGAINST JAPAN IF IT DIDN'T MAKE REQUESTED CHANGES IN BIDDING PROCEDURES BY THURSDAY IT IS HIGHLY UNLIKELY THAT THE U. S. WILL IMPOSE SANCTIONS NOW U. S. NEGOTIATORS HAVE BEEN WORKING WITH THEIR JAPANESE COUNTERPARTS SINCE OCTOBER TO REACH A MUTUALLY AGREEABLE SYSTEM IN ADDITION THE U. S. REALIZES THAT A SANCTIONS BATTLE WOULD WRECK EFFORTS TO PERSUADE JAPAN TO REACH AGREEMENT IN A BROADER SET OF TRADE NEGOTIATIONS CALLED THE FRAMEWORK TALKS THE NEW JAPANESE PLAN SHOWS THAT AT LEAST IN SOME AREAS JAPAN'S POLITICAL TRANSFORMATION CAN BENEFIT U. S. INDUSTRY JAPAN'S CONSTRUCTION INDUSTRY WAS THE MAJOR CONTRIBUTOR TO THE LIBERAL DEMOCRATIC PARTY WHICH HAD RULED JAPAN FOR THIRTY EIGHT YEARS UNTIL LAST SUMMER AND WHICH ACTIVELY PROTECTED CONTRACTORS THE PARTY'S FALL STEMMED IN PART FROM A WAVE OF CONSTRUCTION RELATED MONEY SCANDALS A MONTH AGO PRIME MINISTER MORIHIRO HOSOKAWA ALSO TOOK ON ANOTHER L. D. P. RELATED SPECIAL INTEREST JAPAN'S FARMERS AND AGREED TO END THE COUNTRY'S BAN ON RICE IMPORTS THE U. S. IS ALSO HOPING THAT MR. HOSOKAWA WILL ULTIMATELY SIDE WITH ITS DEMANDS IN THE WIDE RANGING FRAMEWORK TALKS THE TWO COUNTRIES ARE AIMING TO REACH AN AGREEMENT BY FEBRUARY ELEVENTH WHEN MR. HOSOKAWA IS SCHEDULED TO MEET WITH MR. CLINTON IN WASHINGTON BUT SO FAR U. S. OFFICIALS SAY MAJOR PHILOSOPHICAL DIFFERENCES REMAIN THE CONSTRUCTION DISPUTE HAS BEEN ONE OF THE MOST TENSE BILATERAL TRADE SPATS OVER THE PAST DECADE WITH U. S. OFFICIALS CLAIMING THAT THE INDUSTRY HAS BEEN A MICROCOSM OF THE CLOSED COZY NATURE OF THE JAPANESE SYSTEM U. S. CONSTRUCTION ENGINEERING AND DESIGN COMPANIES SAY IT HAS BEEN ALMOST IMPOSSIBLE TO GET BUSINESS IN JAPAN WHERE FORMAL AND INFORMAL POLICIES DISCOURAGE NEWCOMERS BID RIGGING HAS BEEN RAMPANT AND PROJECTS ARE OFTEN ASSIGNED YEARS BEFORE A FORMAL BID IS ANNOUNCED THE JAPANESE IN TURN HAVE ARGUED THAT U. S. COMPANIES HAVEN'T TRIED HARD ENOUGH TO GAIN BUSINESS HERE UNDER A NINETEEN EIGHTY EIGHT AFFIRMATIVE ACTION TYPE AGREEMENT U. S. COMPANIES DID WIN SOME BUSINESS ON SOME SPECIALLY DESIGNATED MAJOR PROJECTS BUT THEY SOON COMPLAINED THAT PROGRESS WAS SLOW LEADING TO THE CLINTON ADMINISTRATION'S LATEST DEMANDS FOR MORE SWEEPING CHANGES THE NEW PLAN WHICH GOES INTO EFFECT APRIL FIRST WILL INTRODUCE AN OPEN BIDDING PROGRAM FOR PUBLIC WORKS PROJECTS ORDERED BY THE CENTRAL AND LOCAL GOVERNMENTS AS WELL AS FOR EIGHTY FOUR PUBLIC CORPORATIONS UNTIL NOW MOST JAPANESE PUBLIC WORKS PROJECTS WERE AWARDED THROUGH DESIGNATED BIDDING A MURKY SYSTEM THROUGH WHICH COMPANIES HAD TO MEET UNCLEAR SPECIFICATIONS BEFORE THEY COULD EVEN SUBMIT A BID REPRESENTATIVES OF FOREIGN CONSTRUCTION COMPANIES IN JAPAN WERE GUARDEDLY OPTIMISTIC ABOUT THE PROGRAM IN PRINCIPLE IT SOUNDS FINE SAID JOHN DICKISON GENERAL MANAGER AT SCHAL BOVIS IN JAPAN BUT IT REMAINS TO BE SEEN WHETHER THIS IS ANYTHING MORE THAN JUST AN UNDERTAKING ON PAPER THE NEW PLAN WILL THROW OPEN TO COMPETITION CENTRAL GOVERNMENT PROJECTS THAT ARE WORTH MORE THAN A THRESHOLD OF SIX POINT FOUR MILLION DOLLARS AT CURRENT EXCHANGE RATES FOR PROJECTS COMMISSIONED BY REGIONAL GOVERNMENTS AND PUBLIC CORPORATIONS THE NEW PLAN WILL APPLY TO PROJECTS OF MORE THAN TWENTY ONE POINT FOUR MILLION DOLLARS U. S. OFFICIALS HAD SAID EARLIER THAT THEY WANTED THE THRESHOLD TO BE LOW ENOUGH TO ALLOW A MEANINGFUL INCREASE IN FOREIGN BUSINESS IT WASN'T CLEAR WHETHER THE CABINET'S PLAN MET U. S. EXPECTATIONS THE U. S. OFFICIALS HAD ALSO BEEN PRESSING JAPAN TO MAKE CLEAR THAT THE MARKET WOULD BE MORE OPEN TO FOREIGN CONSTRUCTION MATERIALS SUCH AS GLASS IT ISN'T YET CERTAIN HOW THAT WILL BE ADDRESSED FLORIDA POWER CORPORATION A UNIT OF FLORIDA PROGRESS CORPORATION SAID IT WILL ELIMINATE ABOUT THREE HUNDRED POSITIONS THE COMPANY SAID THE POSITIONS ARE PART OF ENERGY DISTRIBUTION THE COMPANY'S LARGEST OPERATING UNIT THIS AREA OF FLORIDA POWER'S OPERATIONS INCLUDES ALL FUNCTIONS RELATED TO CUSTOMER SERVICE FLORIDA POWER SAID THE AFFECTED WORK FORCE IS EMPLOYED THROUGHOUT THE COMPANY'S THIRTY TWO COUNTY AREA OF SERVICE AND INCLUDES OFFICE TECHNICAL AND FIELD SUPPORT POSITIONS A. B. B. ASEA BROWN BOVERI A. G. THE SWEDISH SWISS HEAVY ENGINEERING GROUP SAID IT RECEIVED AN ORDER VALUED AT MORE THAN ONE HUNDRED MILLION DOLLARS FOR A COMBINED HEATING AND POWER PLANT COMPLEX AT GERA NEAR LEIPZIG IN EASTERN GERMANY THE ORDER FROM KRAFTWERKE GERA GMBH REPRESENTS THE SEVENTH FROM EASTERN GERMANY FOR A. B. B. TO BUILD OR REFURBISH POWER PLANTS THE COMPANY SAID QUOTE THE CONTRACT COVERS THE PLANNING OF A COMBINED HEATING AND POWER PLANT AT GERA NORTH AND TWO ADDITIONAL PLANTS ONE FOR GERA CENTRAL AND THE OTHER FOR GERA SOUTH QUOTE A. B. B. SAID THE COMPANY SAID THE CONTRACT ALSO INCLUDES AN OPTION TO GO AHEAD WITH CONSTRUCTION OF THE THREE PLANTS WHICH ARE SCHEDULED TO BEGIN OPERATION BY MID NINETEEN NINETY SIX A. B. B. ASEA BROWN BOVERI IS OWNED JOINTLY BY ASEA A. B. OF SWEDEN AND B. B. C. BROWN BOVERI A. G. OF SWITZERLAND AMID THE LARGER HOOPLA OF A NEW GOVERNOR IN NEW JERSEY WE MUST NOTE AN INITIAL POSITIVE DECISION BY CHRISTIE WHITMAN SHE'S DECIDED AGAINST USING THE PUBLIC'S TAX DOLLARS TO BRIBE THE PRO BASKETBALL SEVENTY SIX ERS TO MOVE ACROSS THE RIVER TO CAMDEN FROM PHILADELPHIA SHOULD HAVE BEEN A SLAM DUNK ANYWAY HER STATE ENDURES ONE N. B. A. LOSER ALREADY IN THE NETS THE DOLLAR DRIFTED HIGHER AGAINST THE MARK IN LIGHT HOLIDAY TRADING AS THE MARK AGAIN FELL VICTIM TO THE ANEMIC GERMAN ECONOMY AND TO POLITICAL INSTABILITY IN RUSSIA LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FIVE FIVE THREE MARKS UP FROM ONE POINT SEVEN FOUR NINE FIVE MARKS LATE FRIDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED ELEVEN POINT OH SIX YEN UNCHANGED FROM FRIDAY STERLING WAS TRADING AT ONE POINT FOUR NINE THREE TWO DOLLARS LITTLE CHANGED FROM ONE POINT FOUR NINE THREE FOUR DOLLARS ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED TEN POINT NINE THREE YEN AND AT ONE POINT SEVEN FIVE TWO FIVE MARKS TRADERS NOTED EARLY MARK SELLING IN FAVOR OF THE DOLLAR ON THE WEEKEND RESIGNATION OF FIRST DEPUTY PRIME MINISTER YEGOR GAIDAR THE ARCHITECT OF RUSSIA'S ECONOMIC REFORMS MR. GAIDAR SAID HE COULDN'T CONTINUE TO SERVE IN HIS POST BECAUSE HE NO LONGER HAD THE INFLUENCE NECESSARY TO PUSH THROUGH HIS PROGRAM POLITICAL AND ECONOMIC INSTABILITY IN RUSSIA TENDS TO PUSH THE MARK LOWER BECAUSE OF GERMANY'S CLOSE ECONOMIC TIES AND LARGE INVESTMENTS THERE BUT PERHAPS MORE SIGNIFICANTLY TRADERS SAID THE MARK HAS FALLEN PREY TO A MARKETWIDE PERCEPTION THAT THE DOLLAR'S RISE AGAINST THE MARK IS UNSTOPPABLE AS THE U. S. ECONOMY CONTINUES TO STEAMROLL TOWARD RECOVERY WHILE THE GERMAN ECONOMY HAS YET TO HIT BOTTOM QUOTE THERE IS A DIVERGENCE IN THE DIRECTION OF THE TWO ECONOMIES QUOTE SAID ANDREW BUSCH A SENIOR TRADER AT HARRIS TRUST AND SAVINGS BANK IN CHICAGO AND WHILE THERE ARE NO IMMEDIATE CHANGES SEEN IN INTEREST RATES THERE IS A DEFINITE DIRECTION EVENTUALLY INTEREST RATES WILL HAVE TO GO DOWN IN GERMANY WHILE THEY GO UP IN THE U. S. MR. BUSCH SAID HE BELIEVES THE BUNDESBANK WILL CONTINUE TO TRY TO SHORE UP THE FALLING MARK BY HOLDING ITS KEY INTEREST RATES STEADY AT ITS POLICY MAKING MEETING THURSDAY BUT THE MARKET WILL DEFINITELY NOT REWARD THEM FOR THAT DECISION MR. BUSCH PREDICTED IF THEY WAIT AND THE DOLLAR CONTINUES TO GO HIGHER THEY'RE IN TROUBLE BECAUSE THE MARKET WILL REALLY FEED ON THE FACT THAT THE BUNDESBANK WILL HAVE TO CUT LATER HE SAID MARK SCHWARTZ VICE PRESIDENT OF FOREIGN EXCHANGE AT LEHMAN BROTHERS AGREES THAT THE MARK MAY CONTINUE TO WEAKEN EVEN IF THE BUNDESBANK FAILS TO CUT ITS KEY INTEREST RATES THURSDAY THE INTEREST RATE CUTS HAVE BECOME A NONISSUE MR. SCHWARTZ SAID QUOTE THE MARK WILL CONTINUE TO WEAKEN WHETHER THEY CUT OR NOT AT THIS POINT TRADERS ARE JUST OUT TO TRASH THE MARK THE DOLLAR HAS CLIMBED MORE THAN FIVE PFENNIG FROM ONE POINT SIX NINE NINE OH MARKS ON DECEMBER TWENTY EIGHTH WHEN ITS RECENT POWERFUL RALLY BEGAN BUT MR. SCHWARTZ ALSO SOUNDED A WORD OF CAUTION SAYING THE DOLLAR'S STRONG GAINS AGAINST THE MARK COULD BE VULNERABLE TO A CORRECTION SHORTING THE GERMAN CURRENCY HAS BECOME TOO MUCH LIKE A ONE WAY BET HE SAID WHEN IT STARTS TO GET TOO EASY TO MAKE MONEY IN THIS BUSINESS LOOK OUT THAT'S WHEN THE MARKET PUNISHES YOU MR. SCHWARTZ SAID HE ADDED THAT A CUT IN GERMAN INTEREST RATES HAS BEEN SO HEAVILY DISCOUNTED BY THE MARKET THAT WHEN ANY SUCH RATE CUT ARRIVES IT MAY EVEN BE SEEN AS AN EXCUSE TO SELL DOLLARS FOR MARKS AND TAKE PROFITS J. C. PENNEY COMPANY SAID IT WILL SET UP AN IMPORT SLASH EXPORT TRADING BRANCH IN MEXICO CITY NEXT MONTH TO SERVE ITS RETAIL OPERATIONS IN MEXICO AND THE U. S. U. R. S. CONSULTANTS INCORPORATED A UNIT OF U. R. S. CORPORATION SAID IT RECEIVED A CONTRACT TO PROVIDE ENVIRONMENTAL SERVICES FOR THE U. S. AIR FORCE CENTER FOR ENVIRONMENTAL EXCELLENCE THE COMPANY SAID THE SERVICE IS FOR ONE YEAR WITH FOUR ADDITIONAL ONE YEAR OPTIONS THE POTENTIAL TOTAL VALUE OF THE CONTRACT IS ABOUT FIFTY MILLION DOLLARS IT SAID U. R. S. SAID IT WILL PROVIDE PRELIMINARY ASSESSMENT AND SITE INSPECTIONS REMEDIAL INVESTIGATIONS AND FEASIBILITY STUDIES REMEDIAL DESIGNS AND TITLE TWO INSPECTION SERVICES AT AIR FORCE INSTALLATIONS FROM THE REACTION TO YEGOR GAIDAR'S RESIGNATION SUNDAY IT'S EASY TO BELIEVE THAT RUSSIA'S REFORM PROCESS WILL NOW EVAPORATE INTO THE FRIGID MOSCOW ETHER THE RUBLE SANK THREE POINT SIX PERCENT MONDAY AND REFORM OBITUARIES ARE ALREADY APPEARING IN WESTERN AND RUSSIAN PAPERS BUT NEWS REPORTS OF THE DEATH OF REFORM IN RUSSIA ARE MUCH EXAGGERATED AND OVERLOOK THE THRIVING BUSINESS ACTIVITY TAKING PLACE OUTSIDE THE CONFINES OF GOVERNMENT THERE'S NO DENYING THAT MR. GAIDAR'S RESIGNATION IS A SETBACK TO THE REFORM PROGRAM BORIS YELTSIN PROMISED BILL CLINTON LAST WEEK INDEED IT WOULD APPEAR THAT MR. YELTSIN IS GIVING IN TO THE QUOTE GRADUALISTS QUOTE WHO LATELY HAVE BEEN DROWNING OUT REFORMERS LIKE MR. GAIDAR FINANCE MINISTER BORIS FYODOROV AND PRIVATIZATION MINISTER ANATOLY CHUBAIS YET THE OUTWARD SIGNS OF RETROGRESSION MAY BE MISLEADING HERE ARE A FEW THINGS TO BEAR IN MIND MR. GAIDAR IS A REFORMER BUT HE IS NOT THE REFORM A BRILLIANT ECONOMIST WITH DUBIOUS POLITICAL SKILLS MR. GAIDAR HAS ADVOCATED BOLD STROKES TO STABILIZE AND RESTRUCTURE THE ECONOMY BUT HAS OFTEN BEEN STYMIED IN HIS PLANS MESSRS GAIDAR AND FYODOROV STARTED OUT ON THE RIGHT FOOT WHEN PRICES WERE LIBERALIZED PRIVATIZATION SOARED AHEAD PUTTING SOME EIGHTY TWO THOUSAND ENTERPRISES INTO PRIVATE HANDS IN NINETEEN NINETY TWO TO NINETY THREE ALONE BUT RUSSIA'S INDUSTRIAL DINOSAURS MADE NO ATTEMPT TO ADAPT TO THE NEW PRICE SIGNALS OR TO THE INCREASING INFLUX OF WESTERN GOODS AND THEY SOON DEMANDED TO BE FED BY THE STATE THE CENTRAL BANK WAS GIVEN LICENSE TO KEEP THEM AFLOAT BY PUTTING THE PRINTING PRESSES ON OVERTIME NOW MR. YELTSIN MAY HAVE IN MR. GAIDAR THE SORT OF LOYAL OPPOSITION RUSSIA'S POLITICAL SYSTEM HAS LACKED IF MR. GAIDAR CAN USE HIS FORUM IN RUSSIA'S DUMA TO CONSOLIDATE SOME OF THE DEMOCRATIC REFORMIST FORCES WHICH HAVE SO FAR BEEN UNABLE TO UNITE EVEN OVER ISSUES THEY AGREE ON THEN HE WILL PERFORM A POWERFUL ROLE AS MR. YELTSIN'S CRITIC AND CONSCIENCE REAL REFORM IN RUSSIA HAS HAPPENED MORE DESPITE THE GOVERNMENT THAN BECAUSE OF IT THE STATE OF RUSSIA'S GOVERNMENT DEVOID OF FOCUS FULL OF FACTIONS IS DISHEARTENING BUT REFORMING RUSSIA'S INSTITUTIONS BUILDING VIABLE DEMOCRATIC STRUCTURES AND REAL POLITICAL PARTIES IS GOING TO TAKE LONGER THAN A FEW YEARS THE REAL PROGRESS HAS BEEN MADE OUTSIDE THE GOVERNMENT'S REALM A VISIT TO A MOSCOW METRO STATION IS TELLING HERE TABLES DISPLAYING BOOKS SUCH AS THE RUSSIAN ENGLISH FOREIGN TRADE DICTIONARY AND OTHER BUSINESS TOMES REFLECT AN EXPLOSION OF PRIVATE SECTOR ACTIVITY NOT SHOWN IN THE OFFICIAL STATISTICS ABOVE GROUND RUSSIANS SPORTING FUR COATS AND CARTING TWO THOUSAND DOLLARS T. V. SETS IN BOXES BEARING THE NAMES SONY AND PANASONIC ARE NOT UNCOMMON HARD CURRENCY SHOPS NOW ACCEPTING RUBLES AND CREDIT CARDS ARE FULL INCREASINGLY AVERAGE RUSSIANS ARE BUYING OF COURSE MOST RUSSIANS AREN'T RICH AND THE DISPLAYS OF EVEN MODEST WEALTH THAT ONE SEES IN MOSCOW AND SAINT PETERSBURG ARE LESS EVIDENT IN THE COUNTRYSIDE STILL THERE IS CLEARLY A GROWING CLASS OF RUSSIANS ABLE TO AFFORD ITEMS THAT WERE PREVIOUSLY BEYOND THEIR REACH AND NOT ONLY THE ECONOMY HAS IMPROVED THE NEW POLITICAL ORDER IS BETTER THAN THE OLD FOR ONE IT IS LEGITIMATE RUSSIA NOW HAS A CONSTITUTION AND A DEMOCRATICALLY ELECTED PARLIAMENT THAT HOWEVER UNPREDICTABLE IS REPRESENTATIVE OPERATING LAST YEAR IN SOMETHING OF A LEGAL AND CONSTITUTIONAL VACUUM THE PRESIDENT HAD GREAT DIFFICULTY PREVENTING THE OLD PARLIAMENT FROM THWARTING EVEN THE MOST OBVIOUS REFORMS TO HIS CREDIT MR. YELTSIN PUSHED THROUGH PRIVATIZATION EVEN WHILE GIVING IN TO PRESSURE TO KEEP THE MONETARY FAUCET OPEN FULL BLAST AND HE HAS PROMISED TO KEEP MR. CHUBAIS ON AS PRIVATIZATION MINISTER THE MAKEUP OF THE NEW LEGISLATURE MEANS THAT EXECUTIVE LEGISLATIVE CONFLICT AND GRIDLOCK WILL CONTINUE IN THIS PARLIAMENT PERHAPS AS VICIOUSLY AS IN THE OLD SUPREME SOVIET DISSOLVED LAST YEAR THE FORCES IN THE DUMA WILL NEED TO FORGE COALITIONS AND BECAUSE SO MANY MEMBERS ARE NEWCOMERS THEIR ALLIANCES ARE LIKELY TO BE VOLATILE THIS WILL GIVE MR. YELTSIN WITH HIS STRONG CONSTITUTIONAL POWERS AN ADVANTAGE OVER PARLIAMENT IN PRESSING HIS PROGRAMS AN ADVANTAGE NOT AVAILABLE TO HIM LAST YEAR MEANWHILE THE EXISTENCE OF A LOYAL OPPOSITION IN THE DUMA MADE UP OF MR. GAIDAR GRIGORY YAVLINSKY SERGEI SHAKHRAI AND OTHER REFORMERS WILL SERVE AS A POWERFUL CAMP OF PRO REFORM CRITICS PROVIDED THEY CAN FIND SOME WAY TO UNITE THOUGH MANY IN THE WEST HAVE COMPLAINED THAT THE NEW CONSTITUTION GRANTS THE PRESIDENT TOO MUCH POWER THIS GAULLIST MODEL IS JUST WHAT RUSSIA NEEDS RIGHT NOW BORIS YELTSIN'S STRENGTH LIES NOT SO MUCH IN HIS ABILITY TO CREATE A NEW ECONOMIC ORDER THAT WILL LARGELY BE LEFT TO HIS SUCCESSORS BUT IN HIS POWER TO DESTROY THE NOXIOUS REMNANTS OF THE OLD SYSTEM PRISTINE WESTERN DEMOCRATS MAY FIND HIM HEAVY HANDED BUT A LEADER WITH A SOFTER TOUCH WOULDN'T LAST A NANOSECOND IN THE KREMLIN HIS JOB NOW IS TO PAVE THE WAY FOR THE ALREADY EMERGING POST YELTSIN ERA AND THE NEW CLASS OF POLITICIANS ALEXANDER VLADIMIROV A RETIRED MAJOR GENERAL WHO HAS ADVOCATED REFORM IN THE MILITARY FOR MORE THAN A DECADE SAYS RUSSIA IS A POOR AND CRAZY COUNTRY BUT PUT IN CONTEXT THERE HAS BEEN PROGRESS ATTACHED TO HIS LAPEL GENERAL VLADIMIROV WEARS A SMALL PIN GIVEN TO HIM BY FORMER U. S. DEFENSE SECRETARY DONALD RUMSFELD BEARING THE WORDS THERE'S HOPE WE HAVE ONLY ONE REAL ENEMY NOW AND THAT IS OUR PSYCHOLOGY HE SAYS ONLY YELTSIN HAS THE POWER TO GET RID OF THE OLD PLAYERS AND MAKE REFORM A REALITY THE GENERAL IS RIGHT THOUGH FEW ARE LISTENING MR. GAIDAR'S DEPARTURE WILL NOT BY ANY MEANS BE THE END OF REFORM MR. YELTSIN FOR ALL HIS MISTAKES HAS UNLEASHED A PROCESS THAT WILL CONTINUE LONG AFTER HE AND MR. GAIDAR HAVE LEFT THE KREMLIN MS. RAPHAEL IS EDITORIAL FEATURES EDITOR OF THE WALL STREET JOURNAL EUROPE THIS IS THE FIRST EXHIBIT IN MORE THAN A CENTURY TO FOCUS ON THE FRENCH PAINTER'S LANDSCAPES AMONG THE MORE THAN SEVENTY FIVE PASTELS PRINTS AND DRAWINGS ARE TWO OF HIS EARLIEST LANDSCAPES QUOTE ITALIAN LANDSCAPE SEEN THROUGH AN ARCH QUOTE ONE THOUSAND EIGHT HUNDRED FIFTY SIX AND QUOTE VIEW OF MOUNTAIN VESUVIUS CIRCA ONE THOUSAND EIGHT HUNDRED FIFTY SIX IN THE FALL OF ONE THOUSAND EIGHT HUNDRED SIXTY NINE DURING A VISIT TO THE NORMANDY COAST DEGAS COMPLETED MORE THAN FORTY PASTELS INCLUDED FROM THIS PERIOD ARE HIS BESIDE THE SEA BEACH AT LOW TIDE AND SEASCAPE AT SUNSET METROPOLITAN MUSEUM OF ART FIFTH AVENUE AT EIGHTY SECOND STREET JANUARY TWENTY FIRST APRIL THIRD TWO HUNDRED TWELVE EIGHT HUNDRED SEVENTY NINE TO FIVE THOUSAND FIVE HUNDRED TO COMMEMORATE THE ONE HUNDREDTH ANNIVERSARY OF THE MIDWINTER INTERNATIONAL EXHIBITION HELD IN GOLDEN GATE PARK THIS EXHIBIT WILL FEATURE PHOTOGRAPHS MEDALS AND BANNERS FROM THAT FESTIVAL WHICH LED TO THE FOUNDING OF THE M. H. DE YOUNG MEMORIAL MUSEUM ALSO ON VIEW WILL BE WORKS FROM THE MUSEUM'S FINE ARTS BUILDING WHICH WAS BUILT FOR THE ONE THOUSAND EIGHT HUNDRED NINETY FOUR EXPOSITION THAT ARE PART OF THE MUSEUM'S CHARTER COLLECTION OBJECTS FROM THE MUSEUM'S AFRICA OCEANIA AND AMERICAS COLLECTIONS AND ITS TROUBETZKOY BRONZES WILL BE ON DISPLAY AS WELL THIS SHOWING IN CONJUNCTION WITH THE PINACOTECA NAZIONALE IN BOLOGNA ITALY AND THE FIRST DEVOTED SOLELY TO THIS CARRACCI HIS COUSINS THE BROTHERS ANNIBALE AND AGOSTINO WERE ALSO BOLOGNA BORN PIONEERS OF BAROQUE MONUMENTAL PAINTING IN ROME FEATURES FORTY FIVE PAINTINGS FROM ALL PHASES OF THE BOLOGNESE MASTER'S CAREER BROUGHT TOGETHER FROM MUSEUMS AND PRIVATE COLLECTIONS IN EUROPE AND THE U. S. THE PRIVATE COLLECTION OF PENTHOUSE MAGAZINE FOUNDER BOB GUCCIONE AND HIS WIFE KATHY KEETON JUST OPENED AT LONG ISLAND'S NASSAU COUNTY MUSEUM OF ART THE SEVENTY FIVE WORKS INCLUDE DESCENT FROM THE CROSS A FIFTEENTH CENTURY TRIPTYCH FROM THE ROGER VAN DER WEYDEN SCHOOL THAT WAS ORIGINALLY INTENDED AS AN ALTARPIECE AND BOTTICELLI'S BIRTH OF VENUS ALSO WORKS BY EL GRECO CHAGALL DALI DURER AND PICASSO A RARE STAGING OF KURT WEILL'S STREET SCENE OPENS HERE JANUARY TWENTY EIGHTH COMPOSED DURING HIS POST BERLIN YEARS IN AMERICA AFTER HAVING FLED FROM THE NAZIS THIS PRODUCTION FEATURES SHERI GREENAWALD AS ANNA ROBERT MCFARLAND AS FRANK LEE MERRILL AS ROSE AND KIP WILBORN AS SAM KAPLAN FRANCESCA ZAMBELLO DIRECTS AND WARD HOLMQUIST CONDUCTS WITH SETS DESIGNED BY ADRIANNE LOBEL CONTINUING JANUARY THIRTIETH FEBRUARY SECOND FIVE EIGHT ELEVEN AND THIRTEEN ALSO ON THE WINTER SCHEDULE IS DONIZETTI'S LUCIA DI LAMMERMOOR STARRING TIZIANA FABBRICINI JANUARY TWENTIETH TWENTY THREE TWENTY SIX AND TWENTY NINE FEBRUARY FIRST AND FOUR WORTHAM THEATER CENTER'S BROWN THEATER TEXAS STREET AT SMITH LOCALLY SEVEN HUNDRED THIRTEEN TWO HUNDRED TWENTY SEVEN ARTS ELSEWHERE ONE EIGHT HUNDRED EIGHT HUNDRED TWENTY EIGHT ARTS THE ORCHESTRA CELEBRATES THE ONE HUNDREDTH ANNIVERSARY OF THE PREMIERE OF DVORAK'S SYMPHONY NUMBER NINE QUOTE FROM THE NEW WORLD QUOTE WITH PERFORMANCES JANUARY TWENTY EIGHTH AND TWENTY NINE PART OF THE BROOKLYN ACADEMY OF MUSIC'S SOUNDWAVE FESTIVAL THE CONCERTS WILL FEATURE IN ADDITION TO THE DVORAK PIECE EDWARD MACDOWELL'S DIRGE FROM HIS INDIAN SUITE AND AMY BEACH'S GAELIC SYMPHONY BOTH INFLUENCED BY DVORAK FREEZING WEATHER IN MUCH OF THE NORTHERN HALF OF THE U. S. AND REACTION TO THE LOS ANGELES AREA EARTHQUAKE HELPED PUSH OIL PRICES UP INITIAL ASSESSMENTS BY OIL COMPANIES WERE THAT THEIR SOUTHERN CALIFORNIA REFINERIES AND PIPELINES WERE LARGELY UNDAMAGED BY THE EARTHQUAKE BUT SEVERAL PLANTS AND NUMEROUS PIPELINES SHUT DOWN EITHER BECAUSE THEY LOST POWER OR AS PART OF PRECAUTIONARY MEASURES THAT KICKED IN UNDER EMERGENCY PLANS MARKET PARTICIPANTS SAID THE POSSIBILITY THAT SEVERAL MAIN PIPELINES WILL REMAIN CLOSED FOR MORE THAN A FEW DAYS ADDED SOMEWHAT TO THEIR BULLISHNESS YESTERDAY BUT MOST WERE WAITING FOR MORE COMPLETE DAMAGE REPORTS BEFORE INITIATING MUCH QUAKE RELATED TRADING THE UNUSUALLY COLD WEATHER SPURRED MOST OF THE ACTIVITY IN PARTICULAR DEMAND FOR HEATING OIL SURGED WHICH ALSO LIFTED CRUDE OIL PRICES THE ICY TEMPERATURES ALSO SHARPLY BOOSTED NATURAL GAS PRICES THE WEATHER HAS BEEN SO EXTREME THAT TECHNICALLY ORIENTED TRADERS HAVE HAD TO GIVE UP ON THEIR CHARTS IN RECENT DAYS LIGHT SWEET CRUDE OIL ON THE NEW YORK MERCANTILE EXCHANGE CLIMBED BACK ABOVE FIFTEEN DOLLARS A BARREL THE FEBRUARY CONTRACT SURGED THIRTY TWO CENTS A BARREL TO FIFTEEN DOLLARS AND TEN CENTS IT TRADED AS HIGH AS FIFTEEN DOLLARS AND TWENTY NINE CENTS A BARREL A NUMBER OF U. S. OIL COMPANIES RAISED THE PRICE THEY PAY FOR CRUDE AT REFINERIES BY FIFTY CENTS A BARREL HEATING OIL FUTURES HAVE GAINED NEARLY SIX CENTS A GALLON IN THE PAST WEEK HEATING OIL FOR FEBRUARY DELIVERY SETTLED YESTERDAY AT FIFTY TWO POINT SIX SEVEN CENTS A GALLON UP ONE POINT FOUR ONE CENTS ALSO PROVIDING SUPPORT TO PETROLEUM PRICES WAS AN AGREEMENT AMONG THE CREDITOR BANKS OF THE TROUBLED GERMAN COMPANY METALLGESELLSCHAFT A. G. OVER A BAILOUT PACKAGE FEARS EASED THAT THE COMPANY'S U. S. UNIT M. G. CORPORATION A MAJOR PLAYER ON THE NEW YORK MERC WOULD BE FORCED TO LIQUIDATE LARGE POSITIONS THE NATURAL GAS FUTURES CONTRACT FOR FEBRUARY DELIVERY SURGED NINE POINT TWO CENTS TO SETTLE AT TWO DOLLARS AND THIRTY SIX CENTS PER MILLION BRITISH THERMAL UNITS ORANGE JUICE FUTURES PRICES FELL AS TEMPERATURES FAILED TO REACH LEVELS THAT COULD DAMAGE FLORIDA'S ORANGE CROP AT NEW YORK'S COTTON EXCHANGE ORANGE JUICE FOR MARCH DELIVERY WAS DOWN FIVE POINT FIVE FIVE CENTS TO ONE POINT OH EIGHT ONE FIVE DOLLARS A POUND QUOTE AFTER THIS WEEK THE FROST SEASON IS BASICALLY PAST SAID JUDITH GANES ANALYST FOR MERRILL LYNCH THE MAJORITY OF FREEZES HAVE OCCURRED BETWEEN CHRISTMAS WEEK AND THE THIRD WEEK OF JANUARY FROM HERE ON OUT ANY LOSSES TO THE CROP WOULDN'T BE THAT GREAT THIS IS THE BEGINNING OF THE BIG SELL OFF THE ANNUAL EVENT IN NONFREEZE YEARS SANDRA KAUL ANALYST FOR SMITH BARNEY SHEARSON SAID THE MARKET ALSO IS BEING PRESSURED LOWER BY CONCERNS THAT BRAZIL'S ORANGE JUICE CROP MAY NOT HAVE BEEN DAMAGED AS BADLY BY DRY WEATHER AND DISEASE AS HAD PREVIOUSLY BEEN THOUGHT PRECIOUS METALS BUYING BY DEALERS AND COMMODITY FUNDS IN A THIN HOLIDAY MARKET PRESSURED GOLD FUTURES PRICES HIGHER AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS UP TWO DOLLARS AND TEN CENTS TO THREE HUNDRED NINETY TWO DOLLARS AND TWENTY CENTS AN OUNCE ANALYSTS SAID HEALTHY DEMAND FOR GOLD FUTURES CONTRACTS CONTINUES DESPITE THE FACT THAT GOLD IS NOW TRADING AT THE UPPER END OF ITS RECENT THREE HUNDRED SIXTY FIVE DOLLAR TO THREE HUNDRED NINETY DOLLAR TRADING RANGE MANY ANALYSTS HAVE PREDICTED THAT GOLD SOON WILL TEST THE FOUR HUNDRED DOLLAR AN OUNCE LEVEL BUT EACH TIME PRICES HAVE NEARED THAT LEVEL RECENTLY GOLD PRODUCERS HAVE BID PRICES DOWN BY AGGRESSIVELY SELLING GOLD FUTURES CONTRACTS STANLEY R. FALLIS FIFTY THREE YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF PLANNING FOR THIS FINANCIAL SERVICES HOLDING COMPANY HE SUCCEEDS STEPHEN MCCONAHEY WHO RECENTLY WAS NAMED PRESIDENT OF THE KEMPER SECURITIES UNIT MR. FALLIS PREVIOUSLY WAS SENIOR EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT KEMPER SECURITIES JOSEPH R. SITAR FORTY EIGHT WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT AND CHIEF ACCOUNTING OFFICER OF KEMPER CORPORATION HE FORMERLY WAS A VICE PRESIDENT AND COMPTROLLER AT THE AMERICAN LIFE INSURANCE UNIT OF AMERICAN INTERNATIONAL GROUP A SLEEPER IN CLINTON'S HEALTH PLAN MAY BE A NIGHTMARE FOR SOME FIRMS A LITTLE NOTED PROVISION WOULD CREATE A BIG TAX INCREASE FOR MANY BUSINESSES ORGANIZED AS SUB CHAPTER S. CORPORATIONS IN A SUB CHAPTER S. CORPORATION EARNINGS ARE TAXED AS PART OF INDIVIDUAL SHAREHOLDERS' PERSONAL INCOME SUCH SMALL AND MIDSIZE BUSINESSES ALREADY FACE HIGHER TAX RATES AS A RESULT OF THE NINETEEN NINETY THREE BUDGET LAW S. CORPORATION OWNERS NOW HAVE A TOP TAX RATE OF THIRTY NINE POINT SIX PERCENT COMPARED WITH THE THIRTY FIVE PERCENT RATE PAID BY LARGER CORPORATIONS UNDER PRESIDENT CLINTON'S HEALTH CARE REFORM BILL S. CORPORATIONS IN SERVICE INDUSTRIES WOULD ALSO PAY THE TWO POINT NINE PERCENT EMPLOYMENT TAX FOR MEDICARE ON ALL OF THEIR REPORTED EARNINGS CURRENTLY THESE FIRMS MUST PAY THE TAX ONLY ON REVENUE PAID AS SALARIES THE ADMINISTRATION IS TARGETING SERVICE ORIENTED BUSINESSES FROM CONSULTING COMPANIES TO THEATER TROUPES BECAUSE THEIR EARNINGS RESULT MAINLY FROM HUMAN LABOR RATHER THAN A MIX OF LABOR AND EQUIPMENT QUOTE S. CORPORATIONS ARE BEING PENALIZED QUOTE CONTENDS ROBERT BLAIR CHAIRMAN OF THE S. CORPORATION REFORM PROJECT A WASHINGTON D. C. GROUP THAT WANTS CONGRESS TO SIMPLIFY TAX RULES AFFECTING S. CORPORATIONS IT'S EVEN MORE DAMAGING THAN THE NINETEEN NINETY THREE TAX BILL HE ADDS AN ADDITIONAL TAX WOULD REPRESENT A MARKED CHANGE FOR MANY SMALL BUSINESSES SAYS SAM STARR WHO HEADS THE S. CORPORATION TAXATION COMMITTEE FOR THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS IT GETS DOWN TO THE MOST BASIC QUESTION YOU ASK ABOUT A TAX DO I HAVE THE WHEREWITHAL TO PAY BUSINESS OWNERS WILL ANSWER NO IF THEY REINVEST EARNINGS IN THEIR S. CORPORATIONS HE CONTINUES A SO CALLED ANTI ABUSE PROVISION OF THE CLINTON HEALTH CARE PLAN PROBABLY WOULD BE ENFORCED VIGOROUSLY TAX EXPERTS SAY THE PROVISION AIMS TO PREVENT S. CORPORATION OWNERS FROM AVOIDING EMPLOYMENT TAXES BY PAYING THEMSELVES ARTIFICIALLY LOW SALARIES RESTAURATEURS SERVE UP A LOBBYING BLITZ ON HEALTH CARE REFORM LAST MONTH THE NATIONAL RESTAURANT ASSOCIATION BEGAN SEMINARS AROUND THE COUNTRY TO TELL RESTAURANT OWNERS WHY THEY SHOULD OPPOSE PRESIDENT CLINTON'S HEALTH CARE PLAN THE TRADE GROUP DISLIKES THE CLINTON PROPOSAL REQUIRING ALL EMPLOYERS TO HELP PAY FOR EMPLOYEES' HEALTH INSURANCE AT THE SEMINARS RESTAURANT OWNERS COMPLETE WORK SHEETS TO COMPUTE HOW THE CLINTON PLAN WOULD AFFECT THEIR BOTTOM LINES OWNERS ARE THEN URGED TO CITE THE DATA IN THEIR CALLS AND LETTERS TO MEMBERS OF CONGRESS THE ASSOCIATION WANTS OWNERS TO SUPPORT A BILL SPONSORED BY DEMOCRATIC REPRESENTATIVE JAMES COOPER OF TENNESSEE THAT WOULD SIMPLY REQUIRE EMPLOYERS TO OFFER WORKERS HEALTH INSURANCE HERMAN CAIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GODFATHER'S PIZZA INCORPORATED IN OMAHA NEBRASKA IS THE LEAD SPEAKER AT THE SEMINARS WHICH WILL BE HELD THROUGH NEXT MONTH WHAT PROMPTED ME TO GET EMOTIONAL ABOUT THIS IS WHEN I DID THE CALCULATION FOR MY OWN COMPANY SAYS MR. CAIN ALSO A VICE PRESIDENT OF THE ASSOCIATION IT SHOWED A TWO HUNDRED FIFTY PERCENT INCREASE IN MY HEALTH INSURANCE COSTS THAT WOULD GET ANYONE'S ATTENTION MR. CAIN SAYS MOST OF THE INCREASE WOULD OCCUR BECAUSE THE CLINTON PLAN EXTENDS COVERAGE TO PART TIME WORKERS THAT HE DOESN'T NOW COVER THE CHAIN WHICH EMPLOYS ABOUT FOUR THOUSAND PEOPLE OWNS ONE HUNDRED FORTY TWO RESTAURANTS AND FRANCHISES MANY OTHERS DESPITE HEAVY LOBBYING BY THE RESTAURANT ASSOCIATION AND OTHER SMALL BUSINESS ADVOCATES HOWEVER NUMEROUS OWNERS NOW BACK THE CLINTON PLAN WHICH WOULD SUBSIDIZE HEALTH INSURANCE COSTS FOR THE SMALLEST LOWEST WAGE EMPLOYERS RICHARD GROSS PRESIDENT OF GROSS ELECTRIC INCORPORATED A TOLEDO OHIO WHOLESALE SUPPLY BUSINESS ESTIMATES THAT THE PRESIDENT'S PLAN WOULD SAVE HIS SMALL COMPANY ONE HUNDRED THIRTY ONE THOUSAND DOLLARS ANNUALLY IN HEALTH INSURANCE COSTS THE COMPANY CURRENTLY SPENDS ABOUT TWO HUNDRED SIXTY EIGHT THOUSAND DOLLARS A YEAR ON HEALTH INSURANCE FOR ITS SIXTY FOUR EMPLOYEES BIG LOBBYING GROUPS TRY TO QUOTE PUT ALL SMALL BUSINESSES IN THE SAME POT QUOTE MR. GROSS COMPLAINS SMALL BUSINESS INCENTIVES IN THE NINETEEN NINETY THREE BUDGET ACT ARE ATTRACTING LITTLE INTEREST DESPITE HIGH HOPES INITIALLY A PROVISION INCREASING THE VALUE OF EQUIPMENT THAT CAN BE WRITTEN OFF IN THE FIRST YEAR TO SEVENTEEN THOUSAND FIVE HUNDRED DOLLARS FROM TEN THOUSAND DOLLARS ISN'T ENOUGH TO CAUSE MOST COMPANIES TO CHANGE THEIR PURCHASING PLANS SAYS JOHN EVANS DEPUTY DIRECTOR OF ARTHUR ANDERSEN ENTERPRISE GROUP A CHICAGO UNIT OF ARTHUR ANDERSEN AND COMPANY AND THE CAPITAL GAINS TAX CUT FOR ASSETS HELD FOR FIVE YEARS MAY NOT SURVIVE FUTURE CHANGES IN THE TAX LAW VENTURE CAPITALISTS SAY FROM A SOPHISTICATED INVESTORS' POINT OF VIEW THESE MIGHT BE THINGS THAT PUSH A DEAL FORWARD BUT THEY DON'T GENERATE ACTIVITY ON THEIR OWN MR. EVANS CONCLUDES INVESTMENT BOOST SMALL BUSINESS ADMINISTRATION CHIEF ERSKINE BOWLES PLANS TO REVAMP THE SMALL BUSINESS INVESTMENT COMPANY PROGRAM BY LICENSING AS MANY AS TWO HUNDRED NEW INVESTMENT COMPANIES WITH PRIVATE CAPITAL RANGING FROM TEN MILLION DOLLARS TO FIFTEEN MILLION DOLLARS APIECE THE TWO HUNDRED EIGHTY CURRENT S. B. I. C.S HAVE AN AVERAGE OF ELEVEN POINT FIVE MILLION DOLLARS IN CAPITAL AN S. B. I. C. IS A GOVERNMENT LICENSED COMPANY THAT INVESTS A MIX OF ITS FUNDS AND UNCLE SAM'S MONEY IN HIGH RISK FIRMS WITH HIGH GROWTH POTENTIAL S. B. A. OFFICIALS BELIEVE BIGGER AND BETTER CAPITALIZED S. B. I. C.S WOULD BETTER SURVIVE ECONOMIC SWINGS UNDER THE REFORM PLAN THE GOVERNMENT WOULD HOLD PREFERRED STOCK IN S. B. I. C.S RATHER THAN LEND THEM MONEY ENVIRONMENTAL OMBUDSMEN SMALL BUSINESS GROUPS PUSH TO EXPAND THE ENVIRONMENTAL PROTECTION AGENCY'S NEW OMBUDSMEN PROGRAM THE E. P. A. IS PLACING OMBUDSMEN IN EVERY STATE CAPITAL TO HELP SMALL COMPANIES COMPLY WITH THE CLEAN AIR ACT THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS AND THE PRINTING INDUSTRIES OF AMERICA WANT CONGRESS TO BROADEN THE OMBUDSMEN'S ROLE SO THEY COVER ALL FEDERAL ENVIRONMENTAL LEGISLATION DEMOCRATIC REPRESENTATIVES BLANCHE LAMBERT OF ARKANSAS AND RON WYDEN OF OREGON CONSIDER SPONSORING THE MEASURE SMALL TALK THE S. B. A. DROPS ITS MUCH BALLYHOOED PLANS FOR A TOLL FREE NUMBER ENABLING BUSINESS OWNERS TO CALL AND CALCULATE THE EFFECT OF THE CLINTON HEALTH CARE PLAN ON THEIR COMPANIES OFFICIALS DECIDED THE PHONE LINE WOULD COST TOO MUCH SO FAR FIVE BILLS HAVE BEEN INTRODUCED IN CONGRESS TO RESTORE THE TAX DEDUCTION FOR BUSINESS MEALS AND ENTERTAINMENT TO EIGHTY PERCENT IT WAS REDUCED TO FIFTY PERCENT IN LAST YEAR'S BUDGET ACT PROFESSOR JEFFREY SACHS BEGINS HIS DECEMBER THIRTIETH EDITORIAL PAGE PIECE QUOTE IN DEFENSE OF RUSSIA'S REFORMERS QUOTE WITH A CURIOUS INACCURATE AND GRATUITOUS REMARK IT IS DIRECTED TOWARD THOSE WHO ADVOCATE CURRENCY BOARDS AS A MEANS TO STABILIZE AND MAKE CONVERTIBLE THE RUBLE HE ASSERTS THAT RIGHT OF CENTER PUNDITS HAVE ATTACKED REFORMERS FOR REJECTING CURRENCY BOARDS CURRENCY BOARDS ARE HARDLY THE EXCLUSIVE DOMAIN OF THE RIGHT INDEED CURRENCY BOARDS ENJOY THE SUPPORT OF THOSE FROM ALL PARTS OF THE IDEOLOGICAL SPECTRUM INCLUDING IDEOLOGICALLY NEUTRAL INSTITUTIONS SUCH AS THE INTERNATIONAL MONETARY FUND IF THAT WEREN'T ENOUGH THE ONLY CURRENCY BOARD TO EVER OPERATE IN RUSSIA NINETEEN EIGHTEEN TO NINETEEN TWENTY WAS FATHERED BY NONE OTHER THAN JOHN MAYNARD KEYNES HARDLY A RIGHT WINGER AS FOR THE REFORMERS' REJECTION OF CURRENCY BOARDS WHAT MAKES PROFESSOR SACHS'S REMARK EVEN MORE CURIOUS IS THE FACT THAT IN SOME OF HIS OTHER WRITINGS HE HAS WAXED LYRICAL ABOUT EMPLOYING CURRENCY BOARDS IN THE FORMER SOVIET UNION FSU FOR EXAMPLE AN ARTICLE HE CO AUTHORED WITH ARDO HANSSON CROWNING THE ESTONIAN KROON TRANSITION OCTOBER NINETEEN NINETY TWO CONCLUDED THAT THE ESTONIAN MONETARY REFORM CLEARLY POINTS THE WAY FOR THE NEW STATES OF THE FSU MOST OR ALL WILL HAVE THEIR OWN NATIONAL CURRENCIES ESTONIA'S EXPERIENCE DEMONSTRATES THAT IT IS POSSIBLE TO MOVE TO A STABLE AND CONVERTIBLE CURRENCY RIGHT FROM THE START IF THE POLICIES ARE SUPPORTED BY A SOUND INSTITUTIONAL BULWARK SUCH AS A CURRENCY BOARD ARRANGEMENT AND BY SOUND FISCAL POLICY PROFESSOR SACHS'S DEFENSE OF RUSSIA'S OMNISCIENT REFORMERS WOULD BE A GOOD DEAL MORE CREDIBLE IF HE WOULD GET THE FACTS STRAIGHT AND STOP CHANGING HIS OWN TUNE ROMEO J. VENTRES AND ANTHONY S. D'AMATO HAD BEEN GOOD FRIENDS AND PROFESSIONAL ALLIES FOR MORE THAN THREE DECADES AS THEY HELPED EACH OTHER CLIMB THE EXECUTIVE RANKS AT BORDEN INCORPORATED OF DISPARATE PERSONALITIES AND MANAGEMENT STYLES THE TWO ENGINEERS JOINED BORDEN IN THE LATE NINETEEN FIFTIES AND WORKED TOGETHER IN THE COMPANY'S CHEMICAL DIVISION WHEN MR. VENTRES WAS OUT OF WORK IN NINETEEN SEVENTY NINE MR. D'AMATO WAS INSTRUMENTAL IN BRINGING HIM BACK WHEN MR. VENTRES PREPARED TO RETIRE AS BORDEN'S CHIEF EXECUTIVE IN NINETEEN NINETY ONE HE CONVINCED THE BOARD THAT HIS PROTEGE WAS THE IDEAL SUCCESSOR NOW BOTH MEN ARE GONE AND THE COMPANY HAS NEVER BEEN IN WORSE SHAPE MR. VENTRES SIXTY NINE YEARS OLD QUIETLY RESIGNED EARLIER THIS MONTH FROM THE COMPANY'S BOARD AMID MOUNTING CRITICISM OF HIS TENURE FOUR WEEKS EARLIER MR. D'AMATO SIXTY THREE HAD BEEN OUSTED AS CHIEF EXECUTIVE AFTER CLASHING WITH SOME DIRECTORS WHO WANTED TO SELL THE ENTIRE COMPANY IN LESS THAN TWO MONTHS THE TWO MEN WHO SHAPED THE COMPANY OVER THE PAST DECADE AND WERE AT THE HELM DURING ITS DECLINE HAVE LEFT ONCE PROMINENT BORDEN IS SEEMINGLY INVISIBLE THESE DAYS WITH LITTLE ADVERTISING AND MARKETING AND A HODGEPODGE OF SMALL PRODUCTS SALES AND PROFITS IN EVERY MAJOR DIVISION ARE DECLINING IT HAS SHED THOUSANDS OF WORKERS SLASHED ITS DIVIDEND BY SEVENTY FIVE PERCENT AND SINCE NINETEEN EIGHTY NINE TAKEN ONE POINT FIVE BILLION DOLLARS IN RESTRUCTURING CHARGES A HUGE SUM FOR A COMPANY WITH SEVEN POINT ONE FOUR BILLION DOLLARS IN NINETEEN NINETY TWO SALES IN THE THIRD QUARTER THE COMPANY POSTED ITS NINTH CONSECUTIVE QUARTERLY DECLINE IN OPERATING EARNINGS BORDEN'S STOCK WHICH PEAKED IN NINETEEN NINETY ONE AT THIRTY EIGHT DOLLARS AND SEVENTY FIVE CENTS CLOSED YESTERDAY AT FIFTEEN DOLLARS BORDEN WON'T COMMENT ON ITS PAST STRATEGY OR ON THE DEPARTED EXECUTIVES A NEW MANAGEMENT TEAM IS IN PLACE LED BY ERVIN R. SHAMES FIFTY THREE WHO IS A FORMER EXECUTIVE OF PHILIP MORRIS COMPANIES KRAFT GENERAL FOODS UNIT AND BORDEN'S FIRST C. E. O. WITH A BROAD FOOD MARKETING BACKGROUND BUT WITH MORE THAN TWO BILLION DOLLARS IN DEBT NINE HUNDRED MILLION DOLLARS COMING DUE WITHIN A YEAR BORDEN FINDS ITS OPTIONS LIMITED AS IT SEEKS TO UNWIND ITS PAST STRATEGY ALTHOUGH MR. D'AMATO HAS COME UNDER PUBLIC FIRE RECENTLY MR. VENTRES WAS LARGELY RESPONSIBLE FOR THAT STRATEGY HE DREAMED OF TRANSFORMING BORDEN FROM A SLEEPY CONGLOMERATE INTO A MAJOR FOOD MARKETER HE PURSUED HIS VISION RELENTLESSLY SPENDING NEARLY TWO BILLION DOLLARS ON NINETY ONE ACQUISITIONS BETWEEN NINETEEN EIGHTY SIX AND NINETEEN NINETY ONE TO ACCUMULATE SUCH BRANDS AS LAURA SCUDDER'S POTATO CHIPS STEERO BOUILLON AND KRAZY GLUE BY THE TIME MR. D'AMATO TOOK OVER IN NINETEEN NINETY ONE THE COMPANY WAS HAVING PROBLEMS DIGESTING THEM ALL ALTHOUGH MR. VENTRES AND MR. D'AMATO HAD DEVELOPED A COLLEGIAL FRIENDSHIP OVER THE YEARS THEIR STYLES DIFFERED SHARPLY A SHY MAN WITH A GRANDFATHERLY DEMEANOR MR. VENTRES HAD AN ABIDING FAITH IN BORDEN'S TOP MANAGERS AND GAVE THEM FREE REIN FORMER COLLEAGUES SAY MR. D'AMATO WHO IS BLUNT AND PEPPERS HIS CONVERSATION WITH PROFANITY PRIDED HIMSELF ON HIS DEEP INVOLVEMENT IN BORDEN'S OPERATIONS AN APPROACH THAT ALIENATED SOME TOP MANAGERS AND RANKLED HIS FORMER MENTOR QUOTE VENTRES WAS A DREAMER QUOTE SAYS JOHN CASEY VICE CHAIRMAN OF WENDY'S INTERNATIONAL INCORPORATED WHO WORKED FOR ELEVEN YEARS IN BORDEN'S CHEMICAL BUSINESS HE HAS AN ABILITY TO DREAM UP THINGS BUT HE RELIED ON OTHER PEOPLE TO PUT THEM INTO EFFECT NEITHER MR. VENTRES NOR MR. D'AMATO WILL COMMENT ON THEIR YEARS AT BORDEN THEIR RELATIONSHIP OR THEIR FUTURE PLANS UNDER MR. D'AMATO'S CONTRACT WHICH WAS AMENDED BY THE BOARD JUST SIX MONTHS BEFORE HE WAS ASKED TO RESIGN THE FORMER C. E. O. WILL RECEIVE NINE HUNDRED THOUSAND DOLLARS ANNUALLY THROUGH NINETEEN NINETY SEVEN AS FOR MR. VENTRES BORDEN PAID HIM ANNUAL CONSULTING FEES OF TWO HUNDRED FIFTY THOUSAND DOLLARS AFTER HIS RETIREMENT IN ADDITION TO HIS TWENTY EIGHT THOUSAND DOLLAR ANNUAL COMPENSATION AS A DIRECTOR ALTHOUGH BORDEN WAS NEVER A HIGHFLYING COMPANY IT WAS FAR MORE PROFITABLE BEFORE MR. VENTRES'S TENURE FOUNDED IN ONE THOUSAND EIGHT HUNDRED FIFTY SEVEN BY GAIL BORDEN JUNIOR A FORMER TEXAS NEWSPAPERMAN THE COMPANY SOLD CONDENSED MILK DURING THE CIVIL WAR IT LATER DIVERSIFIED INTO CHEMICALS AND ACQUIRED FOOD BRANDS SUCH AS CRACKER JACK AND REALEMON IN THE NINETEEN SIXTIES TO EASE THE EARNINGS SWINGS CAUSED BY SHIFTING CHEMICAL PRICES EUGENE J. SULLIVAN A FORMER CHEMICAL SALESMAN AND MR. VENTRES'S PREDECESSOR BEGAN MOVING BORDEN FURTHER INTO CONSUMER PRODUCTS IT WASN'T A GREAT COMPANY BUT IT WAS A VERY PROFITABLE COMPANY SAYS NOMI GHEZ A GOLDMAN SACHS AND COMPANY ANALYST THEY HAD NO PRETENSIONS AT THE TIME SOON AFTER HE BECAME C. E. O. IN NOVEMBER NINETEEN EIGHTY SIX MR. VENTRES SPED UP THE ACQUISITION PROGRAM FORMER BORDEN EXECUTIVES SAY HE PRESSED SENIOR MANAGERS TO MOVE QUICKLY THEY SAY THE COMPANY SOMETIMES SPENT AS LITTLE AS TWO WEEKS CONDUCTING DUE DILIGENCE BEFORE AGREEING TO ACQUISITIONS WE WERE HURRIEDLY BUYING COMPANIES FOR THE SAKE OF BUYING COMPANIES SAYS HAN KIM A TWENTY YEAR BORDEN VETERAN WHO RESIGNED LAST MONTH MR. KIM SAYS HE RECOMMENDED AGAINST THE COMPANY'S NINETEEN EIGHTY SIX PURCHASE OF FISHER CHEESE COMPANY MAKER OF ARTIFICIAL CHEESE PRODUCTS BUT IN BORDEN'S RUSH TO BOOST ITS GROCERY BUSINESS TOP EXECUTIVES IGNORED HIS ADVICE SAYS MR. KIM TODAY SUPERMARKET SALES OF MANY FISHER BRANDS ARE DECLINING RAPIDLY BY DESIGN MOST OF THE ACQUISITIONS WERE SMALL TO MEDIUM SIZE BRANDS SUCH AS QUINLAN PRETZELS AND AMERICAN ORIGINAL CLAM PRODUCTS THE STRATEGY GROWTH WOULD COME BY SIMPLY MARKETING THE REGIONAL BRANDS BEYOND THEIR HOME TURF CONSOLIDATING MANUFACTURING AND DISTRIBUTION WOULD MAKE BORDEN THE LOW COST PRODUCER OF ITS FAR FLUNG PRODUCT LINES AND GIVE IT MORE CLOUT IN THE MARKETPLACE LARGE ACQUISITIONS DIDN'T PAY MR. VENTRES SAID AT THE TIME BECAUSE THEY OFTEN INCLUDED BUSINESSES BORDEN DIDN'T WANT AND CONSOLIDATING THEM COULD HURT MORALE FOR THE MOST PART WALL STREET AND THE FINANCIAL PRESS BOUGHT INTO MR. VENTRES'S DREAM LARGELY BECAUSE OF THE MANY ACQUISITIONS THE COMPANY'S SALES GREW FIFTY FOUR PERCENT BETWEEN NINETEEN EIGHTY FIVE AND NINETEEN EIGHTY EIGHT EARNINGS INCREASED SIXTY ONE PERCENT THE MOST RAPID GROWTH IN THE COMPANY'S HISTORY WHAT'S MORE REGIONAL MARKETING TAILORING PRODUCTS TO LOCAL TASTES WAS A HOT STRATEGY AMONG MAJOR FOOD COMPANIES IN SPEECHES MR. VENTRES LIKED TO QUOTE A NINETEEN EIGHTY SEVEN ARTICLE IN FORTUNE MAGAZINE THAT REFERRED TO BORDEN AS A CONSUMER PRODUCTS BRUTE BUT WHILE MR. VENTRES RACED TO EXPAND BORDEN'S FOOD PORTFOLIO CRITICS SAY THE COMPANY IGNORED SOME OF THE WELL KNOWN NAMES IT ALREADY OWNED THE COMPANY SOLD FANCY ICE CREAM UNDER ITS LADY BORDEN BRAND FOR DECADES BUT MISSED OUT ON THE NINETEEN EIGHTIES BOOM IN SUPER PREMIUM ICE CREAM AND WHILE FOOD INDUSTRY RIVALS SPUN OUT A HOST OF LINE EXTENSIONS BORDEN NEVER SUCCESSFULLY DEVELOPED NEW PRODUCTS UNDER MANY OF ITS STRONGEST BRAND NAMES MR. VENTRES WAS ALSO CONSIDERED TOO HANDS OFF BY SOME CRITICS WHO THOUGHT HE SHOULD HAVE BROUGHT IN MORE AGGRESSIVE MANAGERS FORMER EXECUTIVES SAY HE LEFT THE EXECUTION OF HIS AMBITIOUS STRATEGY LARGELY TO BORDEN'S TOP MANAGERS MANY OF WHOM HAD BEEN AT THE COMPANY FOR MORE THAN TWENTY YEARS HE RARELY GOT INVOLVED IN DAY TO DAY OPERATIONS SPENDING MOST OF HIS TIME IN BORDEN'S SMALL PARK AVENUE OFFICES IN NEW YORK FAR FROM THE HUB OF THE COMPANY'S OPERATIONS IN COLUMBUS OHIO YET MR. VENTRES THOUGHT BORDEN'S SENIOR MANAGEMENT WAS SO INDISPENSABLE THAT IN NINETEEN EIGHTY NINE HE COOKED UP A QUIRKY ANTITAKEOVER STRATEGY THE PLAN WHICH HAS SINCE BEEN REPEALED BY THE BOARD CALLED FOR BORDEN'S TOP TWENTY FIVE EXECUTIVES TO QUIT IF SHAREHOLDERS DIDN'T RECEIVE QUOTE FAIR MARKET VALUE QUOTE IN A TAKEOVER OR IF ANY MEMBER OF THE TOP MANAGEMENT TEAM WAS FIRED OR DEMOTED EXECUTIVE RECRUITERS WERE LESS THAN IMPRESSED WITH MR. VENTRES'S NEW FANGLED IDEA IT WAS A JOKE SAYS TONY REYNES PARTNER AT TESAR REYNES INCORPORATED IN CHICAGO I DON'T THINK MOST PEOPLE REGARDED SOME OF BORDEN'S PEOPLE IN HIGH ESTEEM AS THE ECONOMY BEGAN TO SLOW IN THE LATE NINETEEN EIGHTIES THE CRACKS IN BORDEN'S STRATEGY BEGAN TO SHOW MOUNTING COMPETITION FROM PRIVATE LABEL PRODUCTS AND A CONSUMER FOCUS ON PRICE HAVE MADE IT DIFFICULT FOR MANY MARKETERS OF NATIONAL BRANDS TO RAISE PRICES AND BORDEN'S VAST COLLECTION OF TINY BRAND NAMES IN DISPARATE CATEGORIES MADE ANY COHESIVE MARKETING PROGRAM DIFFICULT AND EXPENSIVE THE WORLD WAS GOING GLOBAL AND BORDEN WAS STILL A LONG WAY FROM BEING NATIONAL SAYS JOHN MCMILLIN AN ANALYST WITH PRUDENTIAL SECURITIES INCORPORATED IN RETROSPECT THEY BOUGHT THE JUNK BY THE TIME MR. D'AMATO BECAME CHIEF EXECUTIVE IN NOVEMBER NINETEEN NINETY ONE THE COMPANY WAS AILING BY THE END OF NINETEEN NINETY ONE BORDEN'S SALES HAD DECLINED FIVE PERCENT FROM THE PREVIOUS YEAR AND NET INCOME HAD FALLEN NINETEEN PERCENT MR. D'AMATO BEGAN SCRAMBLING TO CONSOLIDATE THE FAR FLUNG PURCHASING DISTRIBUTION AND MANUFACTURING SYSTEMS THE STRATEGY ALSO MEANT A GREATER CENTRALIZATION OF MANAGEMENT MR. D'AMATO ASSOCIATES SAY WAS PROUD OF HIS INVOLVEMENT IN THE DAY TO DAY OPERATIONS ALTHOUGH HIS HOME IS IN MASSACHUSETTS AND BORDEN'S CORPORATE OFFICES ARE IN NEW YORK MR. D'AMATO OFTEN SPENT SEVERAL DAYS EACH WEEK AT THE COLUMBUS OPERATIONS HUB REVIEWING EVERYTHING FROM THE STRATEGY FOR MARKETING CHEESE PRODUCTS TO MANAGERS' PROGRESS IN MESHING THE COMPUTER SYSTEMS TONY WENT INTO THE FIELD SAYS PETER CUSACK AN EXECUTIVE RECRUITER WHO SPENT SIX YEARS AT BORDEN QUOTE HE KEPT VERY CLOSE TABS ON WHAT WAS GOING ON EVERYWHERE QUOTE HE ALSO BECAME DEEPLY INVOLVED IN EFFORTS TO BETTER MARKET THE COMPANY'S MANY BRANDS MR. D'AMATO LED A WIDELY PANNED MOVE TO REVIVE THE COMPANY'S BEST KNOWN BUT FADED SYMBOL ELSIE THE COW AS THE CENTERPIECE OF AN AMBITIOUS ADVERTISING CAMPAIGN FOR DAIRY PRODUCTS HE ALSO HOPED TO UNITE SOME OF THE COMPANY'S DIVERSE PRODUCTS UNDER THE COMPANY'S TEPID SLOGAN IF IT'S BORDEN IT'S GOT TO BE GOOD FORMER EXECUTIVES SAY MR. VENTRES CONSIDERED THE EFFORTS A WASTE OF MONEY MR. D'AMATO'S CLOSE SCRUTINY QUICKLY RUFFLED THE FEATHERS OF SENIOR MANAGERS AT COLUMBUS OPERATIONS WHO HAD OPERATED WITH A FREE HAND FOR YEARS EXECUTIVES IN FOOD DIVISIONS COMPLAIN THAT HE SHOWED LITTLE FAITH IN THEIR EXPERIENCE OR ABILITIES RELYING INSTEAD ON OUTSIDE CONSULTANTS OR MANAGERS FROM BORDEN'S CHEMICAL BUSINESS PEOPLE CLOSE TO THE TWO MEN SAY MR. D'AMATO ALSO BEGAN TO ALIENATE MR. VENTRES SOON AFTER SUCCEEDING HIM THOSE CLOSE TO MR. VENTRES SAY HE DISAPPROVED OF MR. D'AMATO'S PUBLIC CRITICISM OF THE COMPANY MR. D'AMATO DIDN'T HOLD BACK DURING A SPEECH TO ANALYSTS IN SEPTEMBER NINETEEN NINETY TWO HE SAID BORDEN GOES TO MARKET EVERY DAY WITH A FRAGMENTED OUT OF DATE ORGANIZATION THAT IS NOT UP TO THE INCREASING PRESSURES OF TODAY'S ECONOMY IT WASN'T UNTIL THE FIRST QUARTER OF NINETEEN NINETY THREE THAT MR. D'AMATO REALIZING THE MAGNITUDE OF BORDEN'S PROBLEMS BEGAN TO CONSIDER GETTING RID OF SOME OF THE BUSINESSES HE HAD BEEN TRYING TO CONSOLIDATE HE ALSO BEGAN LOOKING OUTSIDE FOR EXPERIENCED FOOD MARKETERS IN FEBRUARY JON G. HETTINGER PRESIDENT OF BORDEN'S GROCERY PRODUCTS DIVISION RESIGNED QUICKLY FOLLOWED BY THE HEADS OF BORDEN'S DAIRY AND PASTA BUSINESSES MR. D'AMATO ALSO BEGAN TO WRESTLE WITH BORDEN'S LAURA SCUDDER'S SNACK FOOD LINE WHICH REMAINS THE MOST STRIKING EXAMPLE OF HOW BORDEN SPIRALED OUT OF CONTROL ACQUIRED IN NINETEEN EIGHTY SEVEN FOR NEARLY ONE HUNDRED MILLION DOLLARS IT WAS ONE OF THE STRONGEST REGIONAL POTATO CHIP BRANDS IN THE COUNTRY WITH THE NUMBER TWO SPOT IN THE HUGE CALIFORNIA MARKET BUT SOME CURRENT AND FORMER EXECUTIVES SAY LAURA SCUDDER'S WAS A DISASTER FROM THE START IN BORDEN'S EAGERNESS TO MAKE THE ACQUISITION ITS DUE DILIGENCE HAD FAILED TO UNCOVER MAJOR UNION PROBLEMS THAT PROMPTED BORDEN TO CLOSE ALL OF LAURA SCUDDER'S CALIFORNIA PLANTS ABOUT A YEAR AFTER THE PURCHASE BORDEN BEGAN USING A MORE EFFICIENT PLANT IN SALT LAKE CITY ONLY TO FIND THAT IT COULDN'T DELIVER THE PRODUCT OVER THE SIERRA NEVADA WITHOUT INCURRING HIGH COSTS AND A LOT OF BROKEN POTATO CHIPS THE QUALITY PROBLEMS COUPLED WITH GROWING COMPETITION ERODED LAURA SCUDDER'S MARKET SHARE SO MUCH THAT EVEN HEAVY DISCOUNTING COULDN'T ERASE THE DECLINE IN MAY BORDEN SOLD LAURA SCUDDER'S TO ANOTHER REGIONAL COMPANY FOR ABOUT FIFTEEN MILLION DOLLARS ALL TOLD THE FIASCO COST BORDEN NEARLY ONE HUNDRED FIFTY MILLION DOLLARS SHAREHOLDERS GREW RESTIVE AT THE ANNUAL MEETING LAST APRIL DIRECTORS FOUND THEMSELVES UNDER ATTACK WHILE MR. VENTRES SAT MUTE STARING AT THE TABLE IN FRONT OF HIM A STEADY STREAM OF SHAREHOLDERS WENT TO THE MICROPHONE AND ACCUSED HIM OF AS AT LEAST ONE PUT IT DESTROYING THE COMPANY SOME URGED HIM TO RESIGN THIS IS A CASEBOOK EXAMPLE OF A TAME INCOMPETENT BOARD OF DIRECTORS FAILING TO DO ITS JOB PROPERLY WILLIAM STEINER AN INVESTOR WHO BOUGHT BORDEN STOCK AT THIRTY THREE DOLLARS RECALLS SAYING THESE RUINOUS POLICIES AND ROTTEN ACQUISITIONS SHOULD HAVE BEEN PREVENTED DESPITE THE CRITICISM OF MR. VENTRES'S ACQUISITION SPREE AND MR. D'AMATO'S SLOW MOVING CONSOLIDATION EFFORTS THE BOARD IN JUNE AMENDED MR. D'AMATO'S EMPLOYMENT CONTRACT FOR FIVE YEARS AND PROMISED TO PAY HIM NINE HUNDRED THOUSAND DOLLARS A YEAR IF HE WAS DISMISSED ABOUT THAT TIME BORDEN RECRUITED MR. SHAMES TO HEAD ITS FOOD OPERATIONS IN ADDITION TO MAKING MR. SHAMES PRESIDENT MR. D'AMATO OFFERED HIM A COMPENSATION PACKAGE THAT EXCEEDED THOSE OF BORDEN'S OTHER TOP EXECUTIVES INCLUDING HIS OWN WITH MR. SHAMES MR. D'AMATO ACCELERATED HIS EXAMINATION OF BORDEN'S MYRIAD BUSINESSES MR. D'AMATO ALSO BROUGHT IN TEAMS OF MANAGEMENT CONSULTANTS AND FINANCIAL ADVISERS INCLUDING BOOZ ALLEN AND HAMILTON INCORPORATED NEW ENGLAND CONSULTING GROUP AND FIRST BOSTON CORPORATION TO HELP HIM EVALUATE THE BUSINESSES BUT THE INCURSION OF CONSULTANTS ALONG WITH FEARS ABOUT CHANGES IN THE EXECUTIVE SUITE ALL BUT PARALYZED BORDEN'S MANAGEMENT MORALE REACHED NEW LOWS AT COLUMBUS RUMORS CIRCULATED SOME MANAGERS SAY THEY WERE TOO DISTRACTED TO FOCUS ON RUNNING THEIR BUSINESSES THE LAST STRAW MAY HAVE BEEN THE DETERIORATION OF BORDEN'S ONE POINT TWO FIVE BILLION DOLLARS PASTA BUSINESS ONCE THE GEM OF ITS FOOD PORTFOLIO THE COMPANY HAD ASSEMBLED A NUMBER OF STRONG REGIONAL BRANDS SUCH AS PRINCE AND PENNSYLVANIA DUTCH BRANDS BECOMING THE NUMBER ONE MARKETER OF BRAND NAME PASTAS IN THE U. S. YET BY LAST NOVEMBER THE PASTA BUSINESS WAS LOSING MARKET SHARE AND HERSHEY FOODS CORPORATION WAS THREATENING TO BECOME THE MARKET LEADER PARTLY TO BLAME A FLAWED STRATEGY BEGUN UNDER MR. VENTRES TO TRANSFORM BORDEN'S BESTSELLING CREAMETTE PASTA INTO A NATIONAL BRAND BY DOING SO BORDEN UNDERCUT ITS OWN STRONG REGIONAL BRANDS AND ALSO PLACED CREAMETTE IN DIRECT COMPETITION WITH POPULAR LOCAL BRANDS IN OCTOBER THE BOARD'S INDEPENDENT DIRECTORS BEGAN TO MEET WITH MERGER LAWYER MARTIN LIPTON TO TRY TO DEVISE A SOLUTION FOR BORDEN'S DIFFICULTIES MR. LIPTON WHO WAS ORIGINALLY RETAINED BY BORDEN PRESENTED THE IDEA OF SELLING THE ENTIRE COMPANY ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION MR. D'AMATO SAID IT WASN'T THE RIGHT TIME GIVEN BORDEN'S WEAK CONDITION ON NOVEMBER THIRTIETH MR. D'AMATO PRESENTED TO THE BOARD THE RECOMMENDATIONS OF HIS MONTHS LONG ANALYSIS SELL OFF THE FLAGGING U. S. SNACK FOOD BUSINESS AND SOME NICHE GROCERY BRANDS AND TAKE A SIX HUNDRED FIFTY MILLION DOLLAR AFTER TAX CHARGE AGAINST FOURTH QUARTER EARNINGS PEOPLE CLOSE TO THE BOARD SAY SOME DIRECTORS BECAME CONVINCED HE WOULD TRY TO BLOCK EFFORTS TO SELL THE COMPANY THE DIRECTORS WHO HAD BEEN HORRIFIED BY PRESENTATIONS MADE BY BOOZ ALLEN DESCRIBING THE CONDITION OF BORDEN'S BUSINESSES ALSO FOUND MR. D'AMATO'S PLAN UNPALATABLE BECAUSE IT FELL FAR SHORT OF WHAT WALL STREET WAS EXPECTING AND INCLUDED WHAT WOULD BE THE FOURTH RESTRUCTURING CHARGE IN FIVE YEARS ON DECEMBER NINTH THE INDEPENDENT DIRECTORS MET AND VOTED TO REQUEST MR. D'AMATO'S RESIGNATION ASSOCIATES SAY MR. D'AMATO WAS SORELY DISAPPOINTED THAT MR. VENTRES DIDN'T DEFEND HIM WHILE HE STILL SAT ON THE BOARD MR. VENTRES MEANWHILE SPEAKS BITTERLY OF HIS FORMER PROTEGE THESE DAYS THE FORMER FRIENDS DON'T TALK TO EACH OTHER IN THE END THE EFFORTS TO SELL THE COMPANY PROVED FUTILE HANSON P. L. C. AND R. J. R. NABISCO HOLDINGS CORPORATION EMERGED BRIEFLY AS POSSIBLE BIDDERS BUT TALKS BROKE DOWN BEFORE CHRISTMAS A NUMBER OF OTHER POSSIBLE BUYERS INCLUDING KOHLBERG KRAVIS ROBERTS AND COMPANY AND NESTLE S. A. LOOKED OVER BORDEN'S PORTFOLIO BUT PASSED ACCORDING TO PEOPLE CLOSE TO THE COMPANY ON JANUARY FIFTH BORDEN'S BOARD REALIZING ITS LIMITED OPTIONS AFTER THE POSSIBILITY OF SELLING THE COMPANY APPEARED DISTANT APPROVED A RESTRUCTURING PLAN IT WAS ALMOST IDENTICAL TO THE ONE MR. D'AMATO HAD PRESENTED JUST A MONTH EARLIER THE COMPANY'S BYLAWS PROVIDE FOR A BOARD OF NINE DIRECTORS MESSRS D'AMATO AND VENTRES LEFT THE COMPANY IN THE PAST TWO MONTHS ANOTHER DIRECTOR THEODORE COOPER CHAIRMAN AND CHIEF EXECUTIVE OF UPJOHN COMPANY DIED IN APRIL MR. SHAMES WAS ELECTED TO THE BOARD IN JUNE ROBERT P. LUCIANO DIRECTOR SINCE NINETEEN EIGHTY NINE CHAIRMAN AND CHIEF EXECUTIVE OF SCHERING PLOUGH CORPORATION FREDERICK E. HENNIG DIRECTOR SINCE NINETEEN NINETY PRESIDENT AND CHIEF OPERATING OFFICER OF WOOLWORTH CORPORATION WILBERT J. LEMELLE DIRECTOR SINCE NINETEEN EIGHTY SEVEN PRESIDENT OF PHELPS STOKES FUND AN EDUCATIONAL FOUNDATION H. BARCLAY MORLEY DIRECTOR SINCE NINETEEN NINETY TWO FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF STAUFFER CHEMICAL COMPANY PATRICIA CARRY STEWART DIRECTOR SINCE NINETEEN SEVENTY SIX FORMER VICE PRESIDENT OF THE EDNA MCCONNELL CLARK FOUNDATION A CHARITABLE ORGANIZATION FRANK J. TASCO DIRECTOR SINCE NINETEEN EIGHTY EIGHT BORDEN'S CHAIRMAN SINCE MR. D'AMATO'S DEPARTURE FORMER CHAIRMAN AND CHIEF EXECUTIVE OF MARSH AND MCLENNAN COMPANIES ERVIN R. SHAMES DIRECTOR SINCE NINETEEN NINETY THREE BORDEN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER R. J. VENTRES DIRECTOR SINCE NINETEEN EIGHTY FIVE FORMER BORDEN CHAIRMAN AND CHIEF EXECUTIVE RESIGNED JANUARY SEVENTH ANTHONY S. D'AMATO DIRECTOR SINCE NINETEEN NINETY FORMER BORDEN CHAIRMAN AND CHIEF EXECUTIVE RESIGNED DECEMBER NINTH THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ALCATEL ALSTHOM S. A. FRANCE TWO BILLION FRENCH FRANCS OF FIVE POINT SEVEN FIVE PERCENT EUROBONDS DUE FEBRUARY SEVENTEENTH TWO THOUSAND FOUR AT ISSUE PRICE NINETY NINE POINT FOUR NINE VIA SOCIETE GENERALE AND JOINT LEAD UNDERWRITER CREDIT COMMERCIAL DE FRANCE REOFFERED AT NINETY SEVEN POINT EIGHT SIX FIVE TO YIELD SIX POINT OH FOUR PERCENT A MARGIN OF THIRTY SIX BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES TWO CASSA DI RISPARMIO DI VERONA VICENZA BELLUMO E. ANCONA COMPANY LONDON BRANCH ITALY ONE HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY NINETEEN NINETY NINE AT ISSUE AND FIXED REOFFER PRICE NINETY NINE POINT SEVEN VIA CITIBANK INTERNATIONAL P. L. C. INTEREST PAID QUARTERLY AT THREE MONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS ZERO POINT TWO FIVE BASIS POINT AT REOFFER PRICE YIELD IS THIRTY ONE POINT FIVE BASIS POINTS ABOVE LIBOR FEES ZERO POINT TWO FIVE COMMERZBANK INTERNATIONAL S. A. LUXEMBOURG GERMAN PARENT SEVENTY FIVE MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY SIXTEENTH NINETEEN NINETY SIX AT ISSUE AND FIXED REOFFER PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL LIMITED INTEREST PAID QUARTERLY AT ONE HUNDRED TWENTY FIVE BASIS POINTS OVER THREE MONTH LIBOR SUBJECT TO TIME RANGE FACTOR SET TWO DAYS BEFORE PAYMENT DATE RANGES AS FOLLOWS FOR FIRST TWO QUARTERS RANGE THREE PERCENT TO FOUR PERCENT FOR SECOND TWO QUARTERS RANGE THREE POINT ONE TWO FIVE PERCENT TO FOUR POINT SIX TWO FIVE PERCENT THIRD TWO QUARTERS RANGE THREE POINT TWO FIVE PERCENT TO FIVE POINT THREE SEVEN FIVE PERCENT AND FOR LAST TWO QUARTERS RANGE THREE POINT FIVE PERCENT TO SIX PERCENT FEES ZERO POINT ONE FIVE DIXONS GROUP TREASURY P. L. C. U. K. PARENT ONE HUNDRED MILLION POUNDS OF SEVEN POINT SEVEN FIVE PERCENT EUROBONDS DUE FEBRUARY SIXTEENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT EIGHT SEVEN SIX VIA SAMUEL MONTAGU AND COMPANY REOFFERED AT NINETY NINE POINT THREE OH ONE TO YIELD SEVEN POINT EIGHT FIVE PERCENT A MARGIN ONE HUNDRED FORTY BASIS POINTS ABOVE COMPARABLE U. K. GILT GUARANTOR DIXONS GROUP P. L. C. FEES TWO TOYOBO COMPANY JAPAN FIVE BILLION YEN OF FLOATING RATE EURONOTES DUE APRIL TWENTY EIGHTH NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA SUMITOMO FINANCE INTERNATIONAL P. L. C. INTEREST PAID QUARTERLY AND FLOATS AT TWENTY SEVEN POINT FIVE BASIS POINTS OVER THREE MONTH LIBOR FEES ZERO POINT TWO HERE'S A CLASS THAT WILL SWEEP YOU OFF YOUR FEET THRILL SEEKERS CAN NOW SIGN UP FOR A CRASH COURSE JOINTLY OFFERED BY INTERGLOBAL SPACE LINES INCORPORATED AND THE WEAVER AEROSPACE CORPORATION THE TOPIC FLOATING THROUGH SPACE THEORY AND PRACTICAL APPLICATION THE COST TWO THOUSAND DOLLARS FOR A ONE DAY FLOAT AND THREE THOUSAND DOLLARS FOR A TWO DAY COURSE DRIFTING AROUND SPACE SHOULDN'T BE LIMITED TO ASTRONAUTS AND SPACE ENGINEERS SAYS RAND SIMBERG PRESIDENT OF INTERGLOBAL A COMPANY FORMED LAST YEAR AS ITS FIRST VENTURE TO PREPARE AVERAGE CITIZENS FOR SPACE INTERGLOBAL ARRANGED WITH WEAVER TO GIVE STUDENTS THE RIDES OF THEIR LIVES WEAVER HAS BEEN PROVIDING WEIGHTLESS FLIGHTS FOR RESEARCHERS SINCE NINETEEN EIGHTY SEVEN THE COMPANIES BEGAN OFFERING CLASSES TO THE GENERAL PUBLIC THIS WEEK SO FAR THERE ARE NO TAKERS FUTURE PARTICIPANTS WOULD FLY TO WEAVER'S TEST FLIGHT CENTER IN BOISE WHERE THEY UNDERGO A FOUR HOUR LECTURE ON SUCH THINGS AS WORK STATIONS AND WEIGHTLESS OPERATIONS AFTER A BREAK FOR LUNCH QUOTE STAY AWAY FROM THE GREASY STUFF QUOTE MR. SIMBERG RECOMMENDS THE FUN BEGINS STUDENTS BOARD A NORTH AMERICAN SABRELINER EXECUTIVE JET WHICH FIRST SOARS TO ABOUT TWENTY THOUSAND FEET BEFORE GOING INTO A GENTLE DIVE THEN THE PILOT SHOOTS UP AT A FORTY FIVE DEGREE ANGLE FOR ABOUT TEN SECONDS NEXT THE PILOT THROTTLES THE ENGINES CAUSING THE AIRPLANE TO LAUNCH INTO A SUBORBITAL TRAJECTORY THAT PROVIDES TWENTY TO TWENTY FIVE SECONDS OF TOTAL WEIGHTLESSNESS THIS MANEUVER IS REPEATED ABOUT A DOZEN TIMES AT FIRST PARTICIPANTS ARE ENCOURAGED NOT TO MOVE AROUND TOO MUCH MR. SIMBERG SAYS BUT THEY DO LEARN TO PERFORM SUCH ACTIVITIES AS MOVING ALONG A HANDRAIL AND POURING LIQUID WITHOUT GRAVITY WE WANT TO GIVE THE FEELING OF WHAT IT WOULD BE LIKE TO WALK ON THE MOON OR WALK ON MARS MR. SIMBERG SAYS JEFFREY SMITH A SEASONED PARAGLIDER AND ROCK CLIMBER AGREED TO PARTICIPATE IN A FLIGHT AFTER HE WAS HIRED TO DESIGN THE LIGHTING FOR A WEAVER PROJECT I DON'T DO DRUGS BUT FOR ME IT WAS LIKE AN ENDORPHIN RUSH SAYS MR. SMITH THIRTY FOUR YEARS OLD HE CALLS THE EXPERIENCE INCREDIBLE THOUGH HE GOT SICK ABOUT TEN TIMES DURING THE FLIGHT AS FOR GREATER HAZARDS THE COMPANIES SAY THEY ARE COVERED BY STANDARD AIRCRAFT INSURANCE BUT THERE IS REALLY NO RATIONAL REASON TO BE CONCERNED MR. SIMBERG SAYS REASSURINGLY IN THE FIRST APPEARANCE OF A BRITISH PRIME MINISTER BEFORE AN INVESTIGATIVE TRIBUNAL JOHN MAJOR TESTIFIED YESTERDAY THAT HE WASN'T INFORMED ABOUT A NINETEEN EIGHTY EIGHT GOVERNMENT DECISION TO EASE RESTRICTIONS ON ARMS SALES TO IRAQ THE TESTIMONY CAME BEFORE A TRIBUNAL THAT THE PRIME MINISTER HIMSELF SET UP IN NINETEEN NINETY TWO FOLLOWING REVELATIONS THAT THE BRITISH GOVERNMENT HAD SECRETLY APPROVED THE EXPORT TO IRAQ OF SOPHISTICATED EQUIPMENT USED TO MAKE WEAPONS THE BRITISH MANUFACTURER OF THE EXPORTS WHICH IRAQ USED TO HELPED CONSTRUCT ITS WAR MACHINE FACED CRIMINAL CHARGES UNTIL PROVING DURING TRIAL THAT THE SALES HAD THE APPROVAL OF MARGARET THATCHER'S GOVERNMENT IN CONTRAST WITH MRS. THATCHER'S COMBATIVE APPEARANCE LAST MONTH MR. MAJOR WAS CALM AND COOPERATIVE HE ALSO TOOK EVERY OPPORTUNITY TO REMIND HIS INQUISITORS WHO HIRED THEM WHEN THEY ASKED MR. MAJOR TO TRY EXPLAINING THE DECISION OF THOSE WHO RELAXED THE ARMS RESTRICTIONS IN NINETEEN EIGHTY EIGHT HE SAID QUOTE IT IS NOT FOR ME TO REACH THE CONCLUSION THAT I HAVE INVITED THIS INQUIRY TO REACH QUOTE ALTHOUGH THE SCANDAL LARGELY OCCURRED ON LADY THATCHER'S WATCH MR. MAJOR BECAME FOREIGN SECRETARY IN NINETEEN EIGHTY NINE AND PRIME MINISTER IN NINETEEN NINETY HE HAD MADE HIMSELF VULNERABLE BY INITIALLY DENYING THAT THE GOVERNMENT EVER RELAXED ITS POLICY OF EXPORTS TO IRAQ WHEN THE OPPOSITE PROVED TO BE TRUE CRITICS ACCUSED HIM OF A COVERUP AND IT WAS THAT CHARGE THAT HE TOOK PAINS YESTERDAY TO DENY BUT PLEADING IGNORANCE LEFT HIM OPEN TO CRITICISM TOO AFTER LISTENING TO MR. MAJOR'S TESTIMONY ROBIN COOK THE LABOR PARTY'S SHADOW TRADE AND INDUSTRY SECRETARY SAID HIS ALIBI IS THAT HE DID NOT KNOW WHAT WAS GOING ON IN THE DEPARTMENT FOR WHICH HE WAS RESPONSIBLE THE DEPARTMENTS THROUGH WHICH HE PASSED APPEAR STUFFED WITH DOCUMENTS HE NEVER SAW OR WHICH HE SAW BUT DID NOT READ TO THE END OR WHICH HE READ BUT DID NOT ACT ON THE IRAQI ARMS SCANDAL HAS PROMPTED CRITICS TO CONTEND THAT MRS. THATCHER'S GOVERNMENT PRIVATELY CATERED TO THE WISHES OF BRITAIN'S DEFENSE INDUSTRY TO EARN BIG PROFITS FROM EXPORTS TO IRAQ IN HER APPEARANCE LAST MONTH SHE HAUGHTILY DISMISSED SUCH ACCUSATIONS WHEN IT IS COMPLETED THE INQUIRY WILL CULMINATE IN A REPORT TO THE GOVERNMENT THE INQUIRY HAS NO PROSECUTORIAL POWERS AND MOST WITNESS TESTIMONY ISN'T USEABLE IN ANY CRIMINAL COURT DUN AND BRADSTREET CORPORATION SAID JOHN C. HOLT RESIGNED AS AN EXECUTIVE VICE PRESIDENT AND CHAIRMAN OF ITS A. C. NIELSEN MARKET RESEARCH UNIT MR. HOLT FIFTY THREE YEARS OLD TOOK A POST AS PRESIDENT AND CHIEF EXECUTIVE OF ANALYTIC SCIENCES CORPORATION A MAJOR UNIT OF PRIMARK CORPORATION WHICH PROVIDES INFORMATION SERVICES MR. HOLT HAS BEEN A DIRECTOR OF PRIMARK BASED IN MCLEAN VIRGINIA SINCE NINETEEN EIGHTY FIVE MR. HOLT LOST HIS OPERATIONAL DUTIES LAST JULY IN A SHAKE UP OF D. AND B'S KEY MARKETING INFORMATION BUSINESSES ALTHOUGH HE REMAINED NIELSEN CHAIRMAN AT THAT TIME HE WAS NAMED EXECUTIVE VICE PRESIDENT GLOBAL RESOURCES A STAFF POSITION INVOLVED IN HUMAN RESOURCES ISSUES AND IN CHARGE OF COMPANY COMMUNICATIONS A D. AND B. SPOKESMAN SAID THE COMPANY HAD NO IMMEDIATE PLANS TO NAME A SUCCESSOR TO MR. HOLT AS NIELSEN CHAIRMAN MR. HOLT HAD BEEN AN EXECUTIVE VICE PRESIDENT OF D. AND B. SINCE NINETEEN EIGHTY TWO AND A CORPORATE DIRECTOR SINCE NINETEEN EIGHTY FIVE A POSITION HE ALSO RESIGNED HE HAD BEEN NIELSEN CHAIRMAN SINCE NINETEEN EIGHTY SEVEN D. AND B'S NIELSEN AND I. M. S. INTERNATIONAL MARKETING DATA SERVICES HAVE FACED INTENSE COMPETITION IN RECENT YEARS PARTICULARLY FROM INFORMATION RESOURCES INCORPORATED CHICAGO THE TWO COMPANIES COLLECT SALES DATA AROUND THE CLOCK FROM SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS USING CHECKOUT SCANNER INFORMATION AND SELL IT TO THE WIDE VARIETY OF PACKAGED GOODS MANUFACTURERS AND OTHER COMPANIES EAGER TO KNOW AS SOON AS POSSIBLE WHAT CUSTOMERS ARE BUYING THE TWO COMPANIES' BATTLE INTENSIFIED LAST YEAR WHEN GEORGE R. GARRICK A TOP I. R. I. EXECUTIVE WAS LURED AWAY TO NIELSEN HE STAYED FOUR MONTHS ONLY TO REJOIN I. R. I. MR. HOLT QUOTE FAILED TO TURN AROUND THE NIELSEN SITUATION QUOTE WHERE I. R. I. IS GAINING MARKET SHARE QUOTE AND DECIDED HIS OPPORTUNITIES WERE ELSEWHERE QUOTE SUGGESTED ONE PERSON FAMILIAR WITH D. AND B. LAST JULY SERGE OKUN FORTY SEVEN A SENIOR VICE PRESIDENT AT D. AND B. AND PRESIDENT OF ITS I. M. S. INTERNATIONAL PHARMACEUTICAL RESEARCH UNIT WAS NAMED AN EXECUTIVE VICE PRESIDENT AND ASSUMED A NEW POSITION AS NIELSEN PRESIDENT AND CHIEF EXECUTIVE HE HAS HAD OPERATING RESPONSIBILITY FOR NIELSEN SINCE THEN D. AND B. A LEADING MARKETER OF BUSINESS INFORMATION SOFTWARE AND SERVICES HAD REVENUE IN NINETEEN NINETY TWO OF FOUR POINT EIGHT BILLION DOLLARS IN SEPTEMBER NINETEEN NINETY TWO PRIMARK PURCHASED DATASTREAM INTERNATIONAL LIMITED A UNIT OF D. AND B. FOR ONE HUNDRED NINETY ONE MILLION DOLLARS IN CASH AND NOTES DATASTREAM INTERNATIONAL A FINANCIAL INFORMATION PROVIDER HAD NINETEEN NINETY ONE REVENUE OF NINETY FOUR POINT SIX MILLION DOLLARS AND EXCELLENT MARGINS ACCORDING TO PRIMARK AT THE TIME PRIMARK HAD THREE HUNDRED NINE POINT SEVEN MILLION DOLLARS IN REVENUE IN NINETEEN NINETY TWO MR. HOLT ALSO WAS ELECTED AN EXECUTIVE VICE PRESIDENT OF PRIMARK AND WILL CONTINUE TO SERVE ON THAT COMPANY'S BOARD JOSEPH E. KASPUTYS PRIMARK CHAIRMAN AND CHIEF EXECUTIVE SAID MR. HOLT IS AN EXPERIENCED INFORMATION INDUSTRY EXECUTIVE WHO WILL HELP ANALYTIC SCIENCES GROW THE CHICKEN KING IS ON THE MOVE AGAIN IN THE PAST TWO YEARS TYSON FOODS INCORPORATED BY FAR THE NATION'S LARGEST POULTRY PROCESSOR HAS SPENT MUCH OF ITS TIME DIVERSIFYING INTO SEAFOOD PROCESSING WITH ITS ACQUISITIONS OF ARCTIC ALASKA FISHERIES CORPORATION AND LOUIS KEMP SEAFOOD COMPANY AS WELL AS BEEF AND PORK BUT SEVENTY FIVE PERCENT OF TYSON'S BUSINESS IS STILL POULTRY AND THE CONTINUING BOOM IN CHICKEN CONSUMPTION HAS PROMPTED A RETURN TO THE COOP IN A BIG WAY THIS MONTH IN ITS BIGGEST EXPANSION SINCE NEARLY DOUBLING IN SIZE IN NINETEEN EIGHTY NINE BY ACQUIRING HOLLY FARMS CORPORATION FOR ONE POINT TWO NINE BILLION DOLLARS TYSON ANNOUNCED PLANS TO BUILD OVER THE NEXT THREE YEARS FOUR POULTRY PLANTS THAT WILL EACH PROCESS ONE POINT THREE MILLION CHICKENS A WEEK COUNTING ONE OTHER PLANT ALREADY UNDER CONSTRUCTION AND SOME ENLARGEMENT OF EXISTING FACILITIES TYSON'S PLANS WILL COST ABOUT FOUR HUNDRED MILLION DOLLARS AND INCREASE ITS WEEKLY PROCESSING CAPACITY BY AT LEAST THIRTY PERCENT THE OVERALL EXPANSION IS EXPECTED TO ADD AT LEAST EIGHT THOUSAND FIVE HUNDRED JOBS TO TYSON'S PAYROLL THE COMPANY NOW EMPLOYS ABOUT FIFTY THOUSAND WORKERS EXECUTIVES AT THE COMPANY BASED IN SPRINGDALE ARKANSAS SAY THEY ARE MERELY ACTING TO MEET GROWING DEMAND DOMESTIC AND FOREIGN ESPECIALLY IN RESTAURANTS WHERE TYSON IS ESPECIALLY STRONG QUOTE WE DON'T SEE IT AS A HUGE RISK QUOTE SAYS DONALD QUOTE BUDDY QUOTE WRAY TYSON'S CHIEF OPERATING OFFICER NEITHER DO INVESTORS THE STOCK DIDN'T MOVE MUCH AFTER THE ANNOUNCEMENT AND CLOSED AT TWENTY THREE POINT EIGHT SEVEN FIVE DOLLARS A SHARE DOWN THIRTY SEVEN POINT FIVE CENTS YESTERDAY IN NASDAQ STOCK MARKET TRADING I GUESS I'D BE CONCERNED ABOUT FOUR NEW PLANTS GOING INTO THE PORK BUSINESS OR BEEF SAYS ERIC J. LARSON ANALYST AT MORGAN STANLEY GROUP INCORPORATED BUT THIS IS A BUSINESS THEY KNOW STILL HE ADDS THIS IS A BIG NUMBER A BIG BIG NUMBER BUT WITH THE NATION IN A LOVE AFFAIR WITH THE CHICKEN THAT BIG NUMBER MAY BE JUSTIFIED WITH THE HELP OF EXPORTS U. S. CHICKEN PRODUCTION HAS GROWN AT AN ANNUAL RATE EXCEEDING SIX PERCENT IN THE PAST FIVE YEARS AND IS PROJECTED TO GROW FIVE PERCENT THIS YEAR AND WHILE PER CAPITA U. S. CONSUMPTION OF BEEF PORK AND SEAFOOD HAS BEEN LARGELY STAGNANT OR DECLINING DURING THAT PERIOD PER CAPITA CHICKEN CONSUMPTION HAS GROWN AT A RATE OF ABOUT FOUR PERCENT A YEAR WITH AMERICANS PROJECTED TO EAT ON AVERAGE ABOUT SEVENTY POUNDS OF CHICKEN EACH IN NINETEEN NINETY FOUR MUCH OF THAT CONSUMPTION IS TAKING PLACE IN RESTAURANTS MOST OF THE BIG HAMBURGER CHAINS HAVE INTRODUCED NEW CHICKEN OFFERINGS IN RECENT YEARS AS HAVE FULL SERVICE RESTAURANT CHAINS AND THE GROWING POPULARITY OF ROASTED CHICKEN HAS YIELDED A NUMBER OF RAPIDLY GROWING FAST FOOD CHICKEN CHAINS ALONG WITH A SWIFT RESPONSE FROM PEPSICO INCORPORATED'S K. F. C. UNIT THE NATION'S DOMINANT FAST FOOD CHICKEN PURVEYOR LAST YEAR THE CHAIN INTRODUCED THE COLONEL'S ROTISSERIE GOLD A MARINATED AND ROASTED PRODUCT AND THE PUBLIC GOBBLED IT UP ALREADY THE MENU ITEM GENERATES TWENTY FIVE PERCENT OF K. F. C.'S SALES MUCH OF THAT REVENUE THE CHAIN SAYS IT WOULDN'T OTHERWISE HAVE WE ALL USED TO GO OUT FOR A HAMBURGER SAYS JOHN M. MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES INCORPORATED QUOTE WE ALL NOW GO OUT FOR ROTISSERIE CHICKEN QUOTE ROTISSERIE GOLD ALSO HAS BEEN GOLDEN FOR TYSON WHICH SUPPLIES MUCH OF THE RAW MATERIAL FOR THE HOT NEW PRODUCT AND TYSON HAS STRENGTHENED ITS HOLD ON THE REST OF THE RESTAURANT CHICKEN BUSINESS AS WELL THE COMPANY SAYS IT SELLS CHICKEN TO NINETY OF THE ONE HUNDRED TOP RESTAURANT CHAINS ITS FOOD SERVICE CUSTOMERS WHICH INCLUDE SCHOOLS HOSPITALS AND HOTELS AS WELL AS RESTAURANTS ACCOUNT FOR FIFTY FIVE PERCENT OF THE COMPANY'S TOTAL POULTRY SALES UP FROM FORTY PERCENT TO FORTY FIVE PERCENT FIVE YEARS AGO BUT TYSON'S EXPANSION ISN'T WITHOUT RISK WILLIAM P. ROENIGK SENIOR VICE PRESIDENT OF THE NATIONAL BROILER COUNCIL A WASHINGTON GROUP REPRESENTING CHICKEN PRODUCERS EXPRESSES CONCERN ABOUT OVERPRODUCTION THAT COULD DEPRESS CHICKEN PRICES ONE OF THESE DAYS WE'RE GOING TO HAVE TO START TO SLOW DOWN HE SAYS BUT IN ANNOUNCING ITS EXPANSION TYSON INSISTS THAT CHICKEN CONSUMPTION WILL CONTINUE TO RISE THOUGH NOT QUITE AS FAST AS IN RECENT YEARS ANALYSTS AGREE CITING POULTRY'S NUTRITIONAL VALUE AND ADAPTABILITY TO DIFFERENT SEASONINGS FLAVORINGS AND COOKING METHODS IT'S A VERY VERSATILE SOURCE OF PROTEIN SAYS RON PAUL A RESTAURANT CONSULTANT AT TECHNOMIC INCORPORATED IN CHICAGO EVEN IF WEAKENED DEMAND DEPRESSES THE INDUSTRY TYSON IS RELATIVELY INSULATED FROM THE MARKET'S VOLATILITY BECAUSE ONLY TEN PERCENT OF ITS POULTRY IS BASIC FRESH CHICKEN SOLD IN SUPERMARKET MEAT CASES THE BULK OF TYSON'S POULTRY PRODUCTS ARE PROCESSED IN SOME ADDITIONAL WAY FOR EXAMPLE BY DEBONING MARINATING BREADING OR PARTLY OR FULLY COOKING IT THE PROFIT MARGINS ON THIS VALUE ADDED CHICKEN ARE HIGHER AND ITS PRICES ARE LESS SUBJECT TO MARKET PRICE SWINGS THAN UNADORNED POULTRY IS FOR EXAMPLE TYSON MARINATES ROTISSERIE GOLD CHICKENS BEFORE DELIVERING THEM TO K. F. C. RESTAURANTS WHICH THEN ROAST THEM OTHER PRODUCTS SHIPPED TO RESTAURANTS NEED ONLY BE HEATED UP TYSON EVEN LENDS FOOD TECHNOLOGISTS FROM ITS SEVENTY FIVE PERSON RESEARCH AND DEVELOPMENT DEPARTMENT TO RESTAURANTS TO HELP DEVELOP NEW PRODUCTS K. F. C. SAYS TYSON WAS INSTRUMENTAL IN DEVELOPING ITS HOT WINGS MENU ITEM AND ALSO WORKED ON ROTISSERIE GOLD TYSON ALSO SEES CONTINUED GROWTH OUTSIDE THE U. S. THOUGH THE COMPANY DOESN'T BREAK OUT FIGURES ON SALES TO INDIVIDUAL COUNTRIES ITS TOTAL EXPORTS DOUBLED TO EIGHT PERCENT OF OVERALL SALES IN THE YEAR ENDED OCTOBER SECOND FROM FOUR PERCENT IN FISCAL NINETEEN NINETY A NUMBER OF TYSON CUSTOMERS SUCH AS K. F. C. MCDONALD'S CORPORATION AND THE SAM'S CLUB WHOLESALE OUTLETS OF WAL MART STORES INCORPORATED ARE EXPANDING RAPIDLY IN MEXICO I THINK MEXICO HAS HUGE POTENTIAL FOR THEM MORGAN STANLEY'S MR. LARSON SAYS THE DECISION TO BUILD PROCESSING PLANTS FROM SCRATCH IS A DEPARTURE FOR TYSON OF ITS ROUGHLY SIXTY FIVE FACILITIES ALL BUT THREE WERE ACQUIRED INCLUDING TWO BEEF PLANTS IN TEXAS WHOSE PURCHASE WAS ANNOUNCED THIS MONTH MR. WRAY SAYS TYSON WOULD HAVE BOUGHT EXISTING FACILITIES THIS TIME TOO BUT THE PRICES BEING ASKED WERE TOO HIGH NONETHELESS TYSON OFFICIALS SAY THE COMPANY CAN EASILY ABSORB THE ADDED CAPITAL COSTS WITHOUT TAKING ON MUCH IF ANY NEW DEBT MR. WRAY ESTIMATES THE COMPANY'S TOTAL CAPITAL OUTLAYS WILL INCREASE TO THREE HUNDRED MILLION DOLLARS IN EACH OF THE NEXT THREE YEARS FROM TWO HUNDRED TWENTY FIVE MILLION DOLLARS LAST YEAR BUT TYSON'S ACCELERATING EXPANSION COULD CAUSE SOME GROWING PAINS JUST AS IT NO LONGER COULD FIND SUITABLE EXISTING PROCESSING FACILITIES FOR SALE AT THE RIGHT PRICE THE COMPANY MAY FIND IT INCREASINGLY HARD TO RECRUIT FARMERS WILLING TO WORK UNDER CONTRACT TO RAISE TYSON'S CHICKENS IN FACT THE COMPANY HAS ALREADY RULED OUT ITS HOME BASE OF NORTHWESTERN ARKANSAS AS A LOCATION FOR ANY OF THE NEW PLANTS CITING A LABOR SHORTAGE THERE ABBOTT LABORATORIES HELPED BY STRENGTHENING DOMESTIC SALES REPORTED A TWELVE PERCENT INCREASE IN FOURTH QUARTER EARNINGS ON A SIX POINT THREE PERCENT RISE IN SALES THE HEALTH CARE PRODUCTS CONCERN SAID NET INCOME ROSE TO THREE HUNDRED NINETY ONE POINT THREE MILLION DOLLARS OR FORTY EIGHT CENTS A SHARE FROM THREE HUNDRED FORTY EIGHT POINT NINE MILLION DOLLARS OR FORTY TWO CENTS A SHARE IN THE YEAR EARLIER QUARTER THE EARNINGS GAIN CAME AS SALES INCREASED TO TWO POINT TWO THREE BILLION DOLLARS FROM TWO POINT ONE OH BILLION DOLLARS PER SHARE EARNINGS REFLECT A DECREASE IN THE NUMBER OF SHARES OUTSTANDING TO EIGHT HUNDRED TWENTY THREE POINT THREE MILLION FROM EIGHT HUNDRED THIRTY SIX POINT NINE MILLION WORLD WIDE SALES OF PHARMACEUTICAL AND NUTRITIONAL PRODUCTS ROSE TEN POINT SEVEN PERCENT TO ONE POINT ONE EIGHT BILLION DOLLARS THE COMPANY SAID WHILE SALES OF HOSPITAL AND LABORATORY PRODUCTS RECORDED A LESS ROBUST ONE POINT SEVEN PERCENT UPTURN TO ONE POINT OH FIVE BILLION DOLLARS THE SLOWER GROWTH IN HOSPITAL AND LAB PRODUCTS REFLECTS THE NEGATIVE IMPACT OF FOREIGN CURRENCY TRANSLATIONS AND NEW PRODUCT INTRODUCTIONS IN THE YEAR EARLIER PERIOD A SPOKESMAN SAID ABBOTT ALSO NOTED THAT DOMESTIC SALES CLIMBED NINE POINT TWO PERCENT TO ONE POINT FOUR ONE BILLION DOLLARS INTERNATIONAL SALES HURT IN PART BY THE STRONGER U. S. DOLLAR AS WELL AS WEAKNESS IN THE EUROPEAN ECONOMY ROSE JUST ONE POINT SIX PERCENT TO EIGHT HUNDRED TWENTY ONE MILLION DOLLARS THE LATEST PERIOD INCLUDED NET LOSSES ON FOREIGN EXCHANGE OF TEN POINT THREE MILLION DOLLARS COMPARED WITH A NET FOREIGN EXCHANGE GAIN OF SIX MILLION DOLLARS IN THE YEAR EARLIER PERIOD IN A REFERENCE TO ABBOTT'S RESULTS FOR THE YEAR DUANE L. BURNHAM CHAIRMAN AND CHIEF EXECUTIVE SAID HE WAS QUOTE PLEASED BY OUR STRONG PERFORMANCE IN NINETEEN NINETY THREE PARTICULARLY IN LIGHT OF THE MANY CHANGES OCCURRING IN THE HEALTH CARE INDUSTRY QUOTE HE SAID IN EACH OF OUR FOUR BUSINESSES PHARMACEUTICAL NUTRITIONAL HOSPITAL AND DIAGNOSTIC PRODUCTS GROWTH WAS DRIVEN BY NEW PRODUCT INTRODUCTIONS AND VOLUME GAINS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ABBOTT ROSE TWELVE POINT FIVE CENTS TO TWENTY NINE DOLLARS AND SEVENTY FIVE CENTS SHORTLY AFTER MIDNIGHT SEVENTY YEAR OLD ABSALON CASTELLANOS HAD JUST FINISHED MILKING THE COWS ON HIS SPRAWLING RANCHO SAN JOAQUIN WHEN HIS WIFE ANSWERED A KNOCK ON THE DOOR QUOTE DON'T BE AFRAID QUOTE THE VISITOR SAID WE DON'T COME TO KILL THE INTRUDER AND HIS COMRADES IN THE EMILIANO ZAPATA NATIONAL LIBERATION ARMY THEN WHISKED AWAY MR. CASTELLANOS AND TWO OF HIS COWS IT APPEARS THAT THE REBELS IN THE STATE OF CHIAPAS PLAN TO USE THE WEALTHY FORMER GOVERNOR IN THEIR EFFORT TO WIN CONCESSIONS FROM THE MEXICAN GOVERNMENT SCORES OF PEOPLE FROM INDIANS TO ACADEMICS TO PRIESTS REFER TO MR. CASTELLANOS AS A LEADING SYMBOL OF THE REPRESSION OF INDIANS IN CHIAPAS MR. CASTELLANOS WHO SERVED AS GOVERNOR FROM NINETEEN EIGHTY TWO UNTIL NINETEEN EIGHTY EIGHT AND WAS AN ARMY GENERAL IN ONE OF THE STATE'S TWO MILITARY ZONES WAS BORN INTO A FAMILY WITH HUGE LAND HOLDINGS HE MADE HIS MARK IN THE MILITARY BECOMING A TOP OFFICIAL IN THE MILITARY COLLEGE AND A CHIAPAS ZONE COMMANDER WHICH GAVE HIM THE RANK OF GENERAL BECAUSE OF HIS MILITARY BEARING MR. CASTELLANOS IS STILL REFERRED TO AS THE GENERAL BY MOST PEOPLE IN CHIAPAS IN NINETEEN EIGHTY TWO HE BECAME GOVERNOR OF CHIAPAS A STATE OF THREE POINT TWO MILLION PEOPLE THAT HAS MUCH MORE IN COMMON WITH NEIGHBORING GUATEMALA THAN IT DOES WITH MEXICO SOON MR. CASTELLANOS WAS BEING CALLED EL BIKINI BY THE NEWS MAGAZINE PROCESO LIKE A BIKINI PROCESO SAID NO ONE COULD QUITE UNDERSTAND HOW HE WAS SUPPORTED AND EVERYONE HOPED HE WOULD FALL ARACELI BURGUETE A HUMAN RIGHTS WORKER SAYS THAT DURING MR. CASTELLANOS'S GOVERNORSHIP ON AVERAGE THERE WAS ONE SUSPICIOUS KILLING OF A CHIAPAN INDIAN EACH MONTH SHE THINKS SHE WAS A VICTIM TOO IN DECEMBER NINETEEN EIGHTY SIX WHILE SHE WAS EIGHT MONTHS PREGNANT SHE SAYS SOMEONE SHOT AT HER AND WOUNDED HER IN THE HAND BELIEVING THE GOVERNOR'S POLICE FORCES WERE BEHIND THE SHOOTING MS. BURGUETE FLED TO MEXICO CITY WHERE SHE NOW FIGHTS FOR INDIAN CAUSES MS. BURGUETE SAYS THAT WHILE MR. CASTELLANOS HELD OFFICE POLICE AND MILITARY FORCES KILLED NEARLY A DOZEN INDIANS INVOLVED IN PRESSING FOR LEGAL LAND RIGHTS NEAR HIS ESTATE INDIAN LEADERS CLAIM THAT THE CASTELLANOS CATTLE RANCH BELONGS TO THEM THEY ARE PARTICULARLY ANGRY THAT IT INCLUDES A SPRING WHICH THEY SAY IN MANY MAYAN CULTURES IS A SACRED GIFT FROM THE LORDS OF THE EARTH DURING MR. CASTELLANOS'S GUBERNATORIAL TENURE AMNESTY INTERNATIONAL ISSUED SEVERAL CONDEMNATIONS ABOUT THE MURDER TORTURE AND ARRESTS OF PEASANT FARMERS AND INDIAN LEADERS IN ONE AMNESTY CASE AN ORGANIZER OF THE NATIONAL FRONT AGAINST REPRESSION WAS INVITED TO A MEETING BETWEEN HIS GROUP AND THE GOVERNOR THEN WAS ARRESTED WHILE WAITING FOR THE MEETING TO BEGIN THE MEXICAN ACADEMY OF HUMAN RIGHTS RELEASED A REPORT DURING THAT TIME RAISING QUESTIONS ABOUT NEARLY TWO DOZEN DEATHS OF PEASANT AND INDIAN LEADERS AT A NEWS CONFERENCE AFTER HIS JANUARY SECOND ABDUCTION MR. CASTELLANOS'S WIFE ELSY AND HIS TWO SONS SAID THAT DURING HIS TENURE AS GOVERNOR NO PEASANT OR INDIGENOUS PERSON WAS THE VICTIM OF ANY FORM OF REPRESSION UNTIL THIS WEEKEND PRESIDENT CARLOS SALINAS DE GORTARI AND HIS STAFF GENERALLY HAD KEPT QUIET ABOUT MR. CASTELLANOS LAST FRIDAY MR. SALINAS ASKED THE HEAD OF THE NATIONAL HUMAN RIGHTS COMMISSION TO INTERVENE ON BEHALF OF THE FIVE HOSTAGES HELD BY THE GUERRILLAS UP TO THAT POINT ONE OF THE FEW TO COME TO MR. CASTELLANOS' DEFENSE WAS HUMAN RIGHTS WATCH SLASH AMERICAS WHICH CALLED SPECIFICALLY FOR THE RELEASE OF THE FORMER GOVERNOR HOSTAGE TAKING IS A VIOLATION OF INTERNATIONALLY RECOGNIZED RULES OF WARFARE THE GROUP SAYS CASTELLANOS BELONGS TO A POLITICAL CLASS THAT HAS BEEN CONDEMNED BY SALINAS SAYS FEDERICO REYES HEROLES THE EDITOR OF A MAGAZINE ON MEXICAN POLITICS GABRIEL GUERRA CASTELLANOS PRESIDENT SALINAS'S PRESS SPOKESMAN FOR FOREIGN MEDIA IS A COUSIN OF THE KIDNAPPED FORMER GOVERNOR OF HIS RELATIVE HE OFFERS ONLY THAT QUOTE HE WAS VERY CONTROVERSIAL QUOTE BRITISH AEROSPACE P. L. C. THE U. K. ENGINEERING AND AVIATION GROUP SAID FIVE HUNDRED EIGHTY JOBS WOULD BE CUT AT ITS AVRO INTERNATIONAL DIVISION IN NINETEEN NINETY FOUR THE COMPANY SAID THAT THE AVRO REGIONAL JETS BUSINESS IS STILL UNDERGOING REORGANIZATION AND THAT THE JOB LOSSES ARE A RESULT OF THIS THE INTERNATIONAL MARKETPLACE FOR JETS CONTINUES TO BE IN RECESSION BRITISH AEROSPACE SAID THE PRICE OF A PARCEL OF LAND RELATED TO THE WHITEWATER CONTROVERSY ROSE ALMOST ONE HUNDRED SEVENTY TWO PERCENT IN A LITTLE MORE THAN A YEAR THANKS TO A SERIES OF SALES INCLUDING ONE IN WHICH BILL CLINTON AND HIS BUSINESS PARTNERS SOLD THE PROPERTY TO THE COMPANY THEY CONTROLLED TIME MAGAZINE REPORTS TIME SAID IT WAS UNABLE TO OBTAIN THE CLINTONS' NINETEEN SEVENTY NINE INCOME TAX RETURN TO LEARN WHETHER THE COUPLE PAID CAPITAL GAINS TAXES ON WHAT APPEARS TO BE A PAPER PROFIT ON THEIR SALE OF THE LAND TO WHITEWATER DEVELOPMENT COMPANY A WHITE HOUSE SPOKESWOMAN SAID SHE COULDN'T COMMENT ON THE TIME REPORT SAYING ALL WHITEWATER MATTERS ARE BEING EXAMINED BY THE JUSTICE DEPARTMENT AND WILL SOON BE THE PURVIEW OF A SPECIAL COUNSEL CITING DEED RECORDS ON FILE IN MARION COUNTY ARKANSAS THE MAGAZINE TRACED THE WHITEWATER ACREAGE FROM ITS ORIGINAL SALE AS PART OF A THREE THOUSAND SIX HUNDRED ACRE TRACT SOLD BY ARKLA LAND COMPANY IN JULY NINETEEN SEVENTY EIGHT TO A COMPANY CALLED ONE HUNDRED ONE RIVER DEVELOPMENT INCORPORATED THE SALE PRICE WAS ABOUT FOUR HUNDRED DOLLARS AN ACRE IN EARLY AUGUST NINETEEN SEVENTY EIGHT ACCORDING TO TIME BILL AND HILLARY RODHAM CLINTON AND THEIR PARTNERS JAMES AND SUSAN MCDOUGAL PURCHASED A TWO HUNDRED THIRTY ACRE PARCEL FROM ONE HUNDRED ONE RIVER DEVELOPMENT FOR TWO HUNDRED THREE THOUSAND DOLLARS OR ABOUT EIGHT HUNDRED EIGHTY TWO DOLLARS AN ACRE THAT PARCEL WAS SOLD IN LATE SEPTEMBER NINETEEN SEVENTY NINE TO WHITEWATER DEVELOPMENT THE COMPANY NEWLY FORMED BY THE CLINTONS AND MCDOUGALS THE TRANSFER FROM THE CLINTONS' AND MCDOUGALS' INDIVIDUAL OWNERSHIP TO THEIR CORPORATE OWNERSHIP WAS ACCOMPLISHED AT TWO HUNDRED FIFTY THOUSAND DOLLARS OR ABOUT ONE THOUSAND EIGHTY SEVEN DOLLARS AN ACRE ACCORDING TO TIME THE PRESIDENT OF THE BANK THAT PROVIDED A LOAN TO WHITEWATER FOR THAT PURCHASE JAMES PATTERSON JUNIOR OF CITZENS BANK AND TRUST IN FLIPPIN ARKANSAS SAID THE FINAL PER ACRE PRICE WAS HIGHER THAN THE ORIGINAL BECAUSE THE PROPERTY HAD A LARGE AMOUNT OF RIVER FRONTAGE U. HAUL INTERNATIONAL INCORPORATED HEATING UP A BIDDING WAR SAID IT INCREASED ITS CASH OFFER TO THREE HUNDRED FIFTY SEVEN POINT FIVE MILLION DOLLARS FROM THREE HUNDRED NINE POINT FIVE MILLION DOLLARS FOR PARTNERSHIPS THAT OWN ONE HUNDRED THIRTY NINE SELF SERVICE STORAGE CENTERS THE PRIVATELY HELD TRUCK AND TRAILER RENTAL COMPANY WHICH HAS ITS OWN SELF SERVE STORAGE BUSINESS IS COMPETING WITH A PROPOSAL BY SHURGARD INCORPORATED A CLOSELY HELD SEATTLE FIRM THAT OPERATES THE CENTERS UNDER MANAGEMENT AGREEMENTS WITH THE PARTNERSHIPS SHURGARD'S PLAN WOULD CONSOLIDATE OR QUOTE ROLL UP QUOTE THE PARTNERSHIPS AND CONVERT THEM INTO A PUBLICLY TRADED REAL ESTATE INVESTMENT TRUST OUR RESEARCH INDICATED THE SHURGARD LIMITED PARTNERS WANT THEIR ORIGINAL INVESTMENT BACK SAID HARRY DESHONG U. HAUL EXECUTIVE VICE PRESIDENT IN ADDITION TO THE INCREASED CASH OFFER U. HAUL OFFERED AS OPTIONS TWO ANNUITIES STRUCTURED THROUGH TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY THAT THE COMPANY SAID WOULD RETURN TO THE PARTNERSHIPS' HOLDERS THEIR ORIGINAL COST OR HIGHER RETURNS WITHIN CERTAIN TIME FRAMES THE PROSPECTUS FOR SHURGARD'S PROPOSAL VALUES THE ASSETS OF THE PARTNERSHIP AT THREE HUNDRED EIGHTY SEVEN POINT FOUR MILLION DOLLARS STILL ABOVE THE REVISED U. HAUL BID RATHER THAN CASH SHURGARD'S PROPOSAL GIVES INVESTORS THE CHOICE OF STOCK IN THE NEW R. E. I. T. OR NOTES THAT MATURE IN TWO THOUSAND IF U. HAUL SUCCEEDS SHURGARD LIKELY WOULD FACE THE LOSS OF FEES FROM ITS CONTRACTS TO MANAGE THE PARTNERSHIPS SHURGARD'S CONTROLLING SHAREHOLDER AND CHIEF EXECUTIVE OFFICER CHARLES K. BARBO IS A GENERAL PARTNER OF ALL THE PARTNERSHIPS LAST MONTH THE GENERAL PARTNERS SUED IN FEDERAL COURT IN SEATTLE TO BLOCK U. HAUL'S OFFER AND U. HAUL SUED THE GENERAL PARTNERS ALLEGING THAT THEY ATTEMPTED TO IMPROPERLY AMEND THE PARTNERSHIP AGREEMENTS TO MAKE IT HARDER TO REMOVE THE GENERAL PARTNERS FRIDAY THE GENERAL PARTNERS SAID THEY WERE REVIEWING U. HAUL'S INCREASED OFFER WHICH EXPIRES JANUARY TWENTY EIGHTH LATE LAST MONTH THE GENERAL PARTNERS ALSO REJECTED A ONE HUNDRED THIRTY SIX MILLION DOLLAR BID BY ANOTHER COMPANY STORAGE EQUITIES INCORPORATED OF GLENDALE CALIFORNIA FOR ASSETS OF SEVEN OUT OF THE SEVENTEEN PARTNERSHIPS ACCORDING TO A SHURGARD PROSPECTUS STORAGE EQUITIES HAS EXPRESSED INTEREST IN INCREASING ITS OFFER BUT HADN'T DONE SO AS OF FRIDAY STEVEN L. ENGELBERG PARTNER IN CHARGE OF THE WASHINGTON OFFICE OF THE KECK MAHIN AND CATE LAW FIRM WAS NAMED TO THE NEW POST OF VICE PRESIDENT WORLD WIDE GOVERNMENT AFFAIRS OF THIS CHEMICAL COMPANY HE IS FIFTY ONE YEARS OLD TWINPAK INCORPORATED A UNIT OF AMCOR LIMITED OF AUSTRALIA SAID IT AGREED IN PRINCIPLE TO BUY THE ASSETS OF WESTRA PLASTICS INCORPORATED A PLASTIC BOTTLE MAKER IN PLATTSBURGH N. Y. TERMS OF THE PACT WEREN'T DISCLOSED A TWINPAK SPOKESMAN SAID CLOSELY HELD WESTRA HAS ABOUT FIFTY EMPLOYEES AND SALES OF BETWEEN TWO MILLION DOLLARS AND TEN MILLION DOLLARS TWINPAK SAID THE PLATTSBURGH PLANT WILL BE ITS FIRST IN THE U. S. PIEDMONT NATURAL GAS COMPANY SAID ITS PIEDMONT ENERGY SERVICES COMPANY UNIT MERGED WITH GMI ENERGY INCORPORATED AND COMMERCIAL NATURAL GAS INCORPORATED TO FORM RESOURCE ENERGY SERVICES COMPANY THE COMPANY SAID RESOURCE ENERGY WILL ACQUIRE TRANSPORT AND STORE NATURAL GAS FOR INDUSTRIAL ENERGY USERS GMI ENERGY AND COMMERCIAL NATURAL GAS ARE HOUSTON BASED ENERGY MARKETING COMPANIES PIEDMONT NATURAL SAID IN U. S. TELEVISION ADS THE ENERGIZER BUNNY IS THREATENED BY THE FICTIONAL LIKES OF KING KONG AND ERNST BLOFELD THE EVIL GENIUS OF JAMES BOND SPY NOVEL FAME CANADIAN COMMERCIALS MENACE THE MECHANICAL HARE WITH SOMETHING THAT'S REALLY DANGEROUS THE COUNTRY'S AWFUL WINTER THE U. S. QUOTE KILL THE BUNNY ADS DIDN'T GO OVER WELL QUOTE IN CANADA SAYS BRENT PULFORD A CANADIAN AD EXECUTIVE AT BACKER SPEILVOGEL BATES SO ENERGIZER'S CANADIAN MARKETING TEAM SLOGGED UP TO CHURCHILL MANITOBA KNOWN AS THE POLAR BEAR CAPITAL OF THE WORLD TO SHOOT AN AD THAT WOULD HAVE MORE APPEAL THE CANADIAN SPOT WHICH BEGAN AIRING IN CANADA LAST MONTH FEATURES THE DRUM THUMPING COTTONTAIL VYING WITH A DOG SLED TEAM IN A RACE ACROSS THE FROZEN TUNDRA NO PRIZES FOR GUESSING THE WINNER PRODUCTION TEAM MEMBERS SAY THE WEATHER WAS BRUTAL DURING THE SHOOT THE TEMPERATURE HOVERED NEAR THIRTY DEGREES BELOW ZERO WITH THE WIND CHILL MAKING IT FEEL LIKE MINUS NINETY CAMERAS HAD TO BE WRAPPED IN ELECTRIC BLANKETS TO KEEP THEM FROM SEIZING UP THE ENERGIZER BUNNY GOT STAR TREATMENT THE CREATURES COST A COOL SEVENTY THOUSAND DOLLARS EACH SO ENERGIZER WAS LOATH TO SEE ONE FROSTBITTEN THE BUNNY HAD HIS OWN TRUCK WHERE ALL HIS GEAR IS IN BETWEEN TAKES HE WAS RUSHED BACK TO THE TRUCK TO KEEP WARM SAYS MR. PULFORD WHO WROTE THE SPOT TWO HANDLERS LOOKED AFTER THE HARE WHILE THE COMMERCIAL WAS BEING FILMED THEY PUT HIM TOGETHER FOR SHOOTS THE BUNNY'S HEAD COMES OFF WHEN HE'S NOT ON A JOB BRUSHED HIS FUR AND KEPT HIS BATTERIES CHARGED NO THE BUNNY DOESN'T RUN ON ENERGIZER FLASHLIGHT BATTERIES AS THE ADS IMPLY BUT THE COMPANY SAYS IT DOES MAKE THE BATTERY PACK THAT POWERS THE CREATURE'S MOTOR TRUE TO THE ENERGIZER HYPE THE BUNNY KEPT GOING LITTLE WONDER WITH ALL HIS INTERNAL MECHANISMS THE BUNNY WEIGHS IN AT FORTY POUNDS AND STANDS NEARLY TWO AND ONE HALF FEET TALL HE RUNS BY REMOTE CONTROL ON A TRACK LIKE A TANK WHEN THE WINDS PEAKED ON THE THIRD AND FINAL DAY OF THE SHOOT EVERYTHING ELSE WAS BLOWING DOWN EXCEPT THE RABBIT MR. PULFORD SAYS P. S. THE BUNNY DIDN'T JUST CROSS THE FINISH LINE FIRST IN THE CANADIAN COMMERCIAL HE ARRIVED TOWING THE SLED WITH THE POOPED CANINES STRETCHED OUT ON TOP THE LATEST ROUND OF BIDDING FOR U. S. POSTAL SERVICE POSTAGE STAMP PRINTING CONTRACTS HAS SHAKEN UP THE SECURITY PRINTING INDUSTRY PARTICULARLY NORTH AMERICA'S LARGEST PRIVATE SECURITY PRINTING COMPANY U. S. BANKNOTE CORPORATION THE POSTAL SERVICE BIDDING BATTLE LEFT U. S. BANKNOTE WHICH HAS MORE THAN TWO HUNDRED MILLION DOLLARS IN ANNUAL REVENUE IN AN UNFAMILIAR POSITION LEFT OUT AFTER WORKING WITH THE POSTAL SERVICE FOR THE PAST SEVERAL YEARS U. S. BANKNOTE RECEIVED NO ORDERS IN THE RECENT ROUND OF CONTRACTS VALUED AT AS MUCH AS THREE HUNDRED THIRTY MILLION DOLLARS OVER FIVE YEARS INSTEAD THE POSTAL SERVICE GAVE POSTAGE STAMP PRINTING CONTRACTS TO BANKNOTE CORPORATION OF AMERICA NEW YORK FOR ONE HUNDRED SIXTEEN POINT SEVEN MILLION DOLLARS STAMP VENTURES CENTREVILLE VIRGINIA SEVENTY FOUR POINT SIX MILLION DOLLARS ASHTON POTTER AMHERST N. Y. ONE HUNDRED TWENTY FIVE POINT SEVEN MILLION DOLLARS AND AVERY DENNISON CORPORATION CLINTON S. C. FOURTEEN MILLION DOLLARS ASHTON POTTER IS A UNIT OF M. D. C. CORPORATION TORONTO AND BANKNOTE CORPORATION OF AMERICA IS A UNIT OF FRANCOIS CHARLES OBERTHUR GROUP PARIS ALL OF THE AWARDS REPRESENT THREE YEAR CONTRACTS WITH TWO ONE YEAR OPTIONS WITH MORE THAN THIRTY PERCENT OF THE POSTAL SERVICE'S STAMPS NOW PRINTED IN THE PRIVATE SECTOR POSTAGE STAMP CONTRACTS ARE CONSIDERED AN IMPORTANT SOURCE OF REVENUE FOR DOMESTIC SECURITY PRINTING FIRMS AND TECHNOLOGICAL ADVANCES SUCH AS SELF ADHESIVE STAMPS COUPLED WITH THE GROWING COMPLEXITY OF PRINTING STAMPS IN SPECIFIC FORMATS ARE LIKELY TO FORCE THE POSTAL SERVICE TO RELY EVEN MORE HEAVILY ON THE PRIVATE SECTOR IN THE FUTURE THE BULK OF U. S. STAMPS ARE STILL PRINTED BY THE BUREAU OF PRINTING AND ENGRAVING U. S. BANKNOTE WHICH HAD BEEN DOING ABOUT TWENTY FOUR MILLION DOLLARS A YEAR OF WORK FOR THE POSTAL SERVICE BEFORE THE RECENT ROUND OF AWARDS SAID THE LOST REVENUE WOULD TRIM PER SHARE EARNINGS BY ABOUT FIFTEEN CENTS IN NINETEEN NINETY FOUR THE COMPANY WHICH BID FOR THE POSTAL SERVICE CONTRACT THROUGH ITS AMERICAN BANKNOTE UNIT SAID IT WOULD FOCUS ON ITS GROWING INTERNATIONAL BUSINESS SINCE THE AWARDS U. S. BANKNOTE STOCK HAS SUNK THE SHARES WHICH TRADED AS HIGH AS SIX POINT THREE SEVEN FIVE DOLLARS JUST BEFORE THE POSTAL SERVICE ANNOUNCEMENT WERE QUOTED AT FOUR DOLLARS AND TWENTY FIVE CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY REPRESENTATIVES OF THE POSTAL SERVICE DEFENDED THE CONTRACT PROCUREMENT PROCESS THE AGENCY TOOK BIDS ON EIGHT PRODUCT LINES QUOTE AND WE HAD COMPETITION FOR ALL OF THOSE ITEMS QUOTE SAID DAVID PAGE CONTRACT OFFICER FOR THE POSTAL SERVICE AND THEY U. S. BANKNOTE JUST WEREN'T A BEST VALUE OFFERER IN ANY OF THOSE ITEMS THEIR PRICE WAS TOO HIGH OR THEY PERFORMED TOO POORLY IN TECHNICAL EVALUATIONS IT'S REALLY JUST THAT SIMPLE U. S. BANKNOTE SAYING IT WAS DEEPLY DISAPPOINTED BY THE POSTAL SERVICE'S AWARD PLANS TO FILE A FORMAL APPEAL THE COMPANY ALSO EXPRESSED SOME SKEPTICISM ABOUT ITS SMALLER COMPETITORS SMALL MAY BE BEAUTIFUL BUT THIS IS A REAL TASK AHEAD OF THEM SAID A U. S. BANKNOTE SPOKESMAN THEY HAVE DONE VERY MINIMAL AMOUNTS OF SECURITY PRINTING WORK COMPARED TO US AND NOW THEY ARE BEING ASKED TO DO THINGS THEY HAVEN'T DONE BEFORE THE POSTAL SERVICE DISMISSED U. S. BANKNOTE'S COMPLAINTS SAYING THAT IT FULLY ANALYZED ALL BIDDERS AND IS CONFIDENT THAT NONE OF ITS CONTRACTORS WILL HAVE TROUBLE FULFILLING ORDERS QUOTE IT'S NOT EASY FOR ME TO SEE A COMPANY LOSE THIS KIND OF BUSINESS QUOTE SAID MR. PAGE IT WOULD HAVE BEEN NICE IF THEY COULD HAVE SCORED BETTER TECHNICALLY OR OFFERED A LOWER PRICE THE OMISSION OF U. S. BANKNOTE FROM THE POSTAL SERVICE'S PRIVATE SECTOR SUPPLIERS STRUCK EVEN SOME OF THE WINNERS AS ODD I WAS SOMEWHAT SURPRISED MYSELF OF THE RESULTS OF THE BIDDING SAID MARTIN FERENCZI PRESIDENT OF BANKNOTE CORPORATION OF AMERICA MR. FERENCZI SAID HIS COMPANY HAS A INTENSIVE CAPITAL EXPENDITURE PROGRAM UNDER WAY TO MEET THE ADDED DEMAND THE COMPANY HOWEVER SAID IT WOULD NOT NEED TO ADD TO ITS NINETY THREE THOUSAND SQUARE FOOT FACILITY IN ROCKLAND COUNTY N. Y. TO MEET THE REQUIREMENTS OF THE NEW STAMP CONTRACT IT'S CURRENTLY UNDERUTILIZED HE SAID TO RECEIVE APPROVAL FOR ITS NINETEEN NINETY MERGER WITH INTERNATIONAL BANKNOTE COMPANY U. S. BANKNOTE SOLD ONE OF ITS PRINTING FACILITIES TO BANKNOTE CORPORATION OF AMERICA AND GUARANTEED THE COMPANY THREE YEARS OF BUSINESS BANKNOTE CORPORATION OF AMERICA WAS SUBSEQUENTLY BOUGHT BY THE FRENCH COMPANY CAPITAL CITIES SLASH A. B. C. INCORPORATED AND WASHINGTON POST COMPANY SAID THEY WILL WORK WITH ORACLE CORPORATION TO DEVELOP ELECTRONIC SERVICES THAT INCLUDE NEWS ON DEMAND THE TWO MEDIA COMPANIES PLAN TO DEVELOP THE SERVICES USING ORACLE DATABASE SOFTWARE THAT ALLOWS LARGE COMPUTERS TO STORE AND RETRIEVE STILL PICTURES VIDEO AND SOUND AS WELL AS TEXT THEY DIDN'T DISCLOSE A TIMETABLE FOR INTRODUCING THE SERVICES BUT SAID THEY HOPE TO PARTICIPATE IN INTERACTIVE T. V. TRIALS PLANNED THIS YEAR FOR SEVERAL CITIES CAPITAL CITIES SLASH A. B. C. WHOSE PROPERTIES INCLUDE A. B. C. TELEVISION AS WELL AS NEWSPAPERS AND RADIO STATIONS PLANS TO COMBINE VIDEO FOOTAGE AND TEXT INFORMATION TO CREATE NEWS SERVICES THAT CAN BE CUSTOMIZED FOR EXAMPLE A VIEWER WATCHING A NIGHTLY NEWS BROADCAST ON BOSNIA MIGHT USE HER T. V. REMOTE CONTROL TO CALL UP RELATED NEWS FOOTAGE TEXT AND MAPS THAT WOULD HELP EXPLAIN THE CONFLICT SAID BRUCE MAGGIN EXECUTIVE VICE PRESIDENT IN CHARGE OF THE NEW YORK BASED COMPANY'S MULTIMEDIA GROUP SIMILARLY WASHINGTON POST SAID IT HOPES TO DEVELOP NEW FORMS OF ELECTRONIC PUBLICATIONS AND ADVERTISING THAT COULD ALLOW USERS TO PICK AND CHOOSE INFORMATION THEY RECEIVE IT HAS AGREED TO WORK WITH ORACLE TO MARKET WHATEVER SERVICES ARE DEVELOPED DONALD BRAZEAL EDITOR AND PUBLISHER OF A NEW MULTIMEDIA SUBSIDIARY CALLED DIGITAL INK SAID TEXT AND VISUAL MATERIAL WILL COME FROM ITS FLAGSHIP NEWSPAPER NEWSWEEK MAGAZINE AND OTHER POST PROPERTIES AS WELL AS OTHER SOURCES OF VIDEO PROGRAMMING ORACLE WHICH PLANS A FORMAL ANNOUNCEMENT OF ITS SO CALLED SERVER SOFTWARE TOMORROW IS AGGRESSIVELY COURTING CUSTOMERS TO DELIVER COMPUTERIZED VIDEO MUSIC AND OTHER MULTIMEDIA MATERIAL BELL ATLANTIC CORPORATION CHOSE ORACLE'S SOFTWARE LAST WEEK TO BEGIN DELIVERING INTERACTIVE VIDEO SERVICES OVER TELEPHONE NETWORKS FEDERAL PROSECUTORS HAVE DECIDED TO SEEK CRIMINAL CHARGES AGAINST A U. S. UNIT OF BRITAIN'S LUCAS INDUSTRIES P. L. C. FOR SELLING THE PENTAGON ALLEGEDLY DEFECTIVE MISSILE HARDWARE THAT FAILED DURING THE PERSIAN GULF WAR ACCORDING TO INDUSTRY AND LAW ENFORCEMENT OFFICIALS THE BRITISH AEROSPACE AND INDUSTRIAL GIANT ALSO IS THE TARGET OF A SEPARATE CRIMINAL INVESTIGATION THESE PERSONS SAID FOCUSING ON ALLEGATIONS ITS U. S. OPERATIONS SOLD THE ARMY THOUSANDS OF SUBSTANDARD HAND HELD RADIOS OVER THE YEARS THE JUSTICE DEPARTMENT INVESTIGATIONS IN WHICH PROSECUTORS ARE BELIEVED TO BE SEEKING WELL OVER TWENTY MILLION DOLLARS IN PENALTIES FROM LUCAS THREATEN TO DERAIL THE COMPANY'S DRIVE TO SNARE MORE PENTAGON BUSINESS MORE BROADLY THE PROBES UNDERSCORE A GROWING PROBLEM FACING MAJOR U. S. AND FOREIGN DEFENSE COMPANIES AS THE INDUSTRY CONSOLIDATES LUCAS ACQUIRED BOTH OF THE BUSINESSES NOW UNDER INVESTIGATION IN THE LATE NINETEEN EIGHTIES WITH MANY OF THE QUESTIONABLE PRODUCTION PROCEDURES ALREADY IN PLACE WITH MERGERS AND ACQUISITIONS AMONG DEFENSE FIRMS ACCELERATING SURVIVING COMPANIES INCREASINGLY ARE LIKELY TO INHERIT POTENTIAL LEGAL LIABILITIES LIKE THOSE CONFRONTING LUCAS ROBERT COHEN A NEW YORK LAWYER REPRESENTING LUCAS DECLINED TO COMMENT AS DID JUSTICE DEPARTMENT SPOKESMEN BUT OTHERS FAMILIAR WITH THE MATTER SAID THAT IN THE NEXT FEW WEEKS LUCAS WILL HAVE TO DECIDE WHETHER TO PLEAD GUILTY UNDER A PLEA BARGAIN OR FACE THE PROSPECT OF BEING INDICTED ON FRAUD AND OTHER CHARGES LUCAS AUL INCORPORATED GARDEN CITY N. Y. MAKES CLASSIFIED MISSILE DEVICES CALLED LAUNCH ELECTRONIC UNITS THAT PILOTS RELY ON TO FIRE MISSILES THE BROOKLYN U. S. ATTORNEY'S OFFICE ACCORDING TO THESE PERSONS RECENTLY TOLD DEFENSE LAWYERS THAT PROSECUTORS INTEND TO SEEK FALSE TESTING CHARGES AGAINST THE SUBSIDIARY FOR SHIPPING ALLEGEDLY FAULTY OR INOPERATIVE DEVICES USED FOR MAVERICK AIR TO GROUND MISSILES CARRIED BY AIR FORCE A TEN JETS THE CRIMINAL PROBE WAS SPARKED MORE THAN TWO YEARS AGO BY SUSPICIONS THAT FAULTY LAUNCH UNITS WERE RESPONSIBLE FOR AN INCIDENT IN WHICH A MAVERICK MISSILE FIRED BY AN A TEN PILOT MISTAKENLY KILLED SEVEN MARINES ON THE KUWATI SAUDI ARABIAN BORDER DURING THE NINETEEN NINETY ONE WAR WITH IRAQ THOSE INITIAL ALLEGATIONS LINKING THE LAUNCH UNITS TO THE DEADLIEST SUCH QUOTE FRIENDLY FIRE QUOTE INCIDENT OF THE PERSIAN GULF CONFLICT HAVEN'T BEEN SUBSTANTIATED LAW ENFORCEMENT AND INDUSTRY OFFICIALS SAID NEVERTHELESS PROSECUTORS AND PENTAGON CRIMINAL AGENTS SOON DISCOVERED THAT SOME OF THE LUCAS DEVICES DIDN'T OPERATE PROPERLY ACCORDING TO ONE OFFICIAL SOME UNITS DIDN'T OPERATE AT ALL WHEN PILOTS PUSHED THE FIRE BUTTON AND INVESTIGATORS UNCOVERED ALLEGEDLY WIDESPREAD TESTING IRREGULARITIES AT THE NEW YORK PLANT THE INVESTIGATION WAS FIRST REPORTED IN THE LONG ISLAND NEWSPAPER NEWSDAY IN AUGUST NINETEEN NINETY TWO AFTER FEDERAL AGENTS RAIDED LUCAS AUL'S FACILITIES BUT THE JUSTICE DEPARTMENT'S DECISION TO PROCEED WITH CHARGES HADN'T BEEN KNOWN THE SEPARATE INVESTIGATION INVOLVING COMMUNICATIONS GEAR SUPPLIED BY LUCAS WHICH NEITHER THE COMPANY NOR THE GOVERNMENT HAS DISCLOSED ISN'T BELIEVED TO BE AS FAR ALONG IN THAT CASE FEDERAL PROSECUTORS CONTEND THAT A HAZLETON PENNSYLVANIA FIRM WHOSE RADIO BUSINESS LUCAS ACQUIRED IN NINETEEN EIGHTY NINE SYSTEMATICALLY USED SMALLER AMOUNTS OF CORROSION RESISTANT GOLD OR OTHER PRECIOUS METALS THAN REQUIRED IN ASSEMBLING MILITARY RADIOS WITH WORLD WIDE REVENUE OF NEARLY FIVE BILLION DOLLARS LUCAS HAS INCREASED ITS U. S. AEROSPACE SALES MORE THAN TEN FOLD SINCE NINETEEN EIGHTY SEVEN LARGELY THROUGH A STRATEGY OF ACQUIRING SMALLER OUTFITS LUCAS AUL AND OTHER UNITS ARE IMPORTANT SUBCONTRACTORS IN VARIOUS MISSILE AND COMMUNICATIONS PROGRAMS FOR THE NAVY AND THE ARMY THE PROBES COULD RESULT IN SOME PARTS OF THE COMPANY BEING BARRED FROM RECEIVING ADDITIONAL GOVERNMENT CONTRACTS CLOSED END FUNDS SELL A LIMITED NUMBER OF SHARES AND INVEST THE PROCEEDS IN SECURITIES UNLIKE OPEN ENDED FUNDS CLOSED ENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C. CHICAGO N. NYSE O. NASDAQ T. TORONTO Z. DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY N. A. V. WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE N. A. V. OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES FIFTY TWO WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST TWELVE MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME. A THE N. A. V. AND MARKET PRICE ARE EX DIVIDEND B. THE N. A. V. IS FULLY DILUTED.C N. A. V. MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D. N. A. V. MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E. N. A. V. ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V. N. A. V. IS CONVERTED AT THE COMMERCIAL RAND RATE. Y. N. A. V. AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N. SLASH A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE ALL OF A SUDDEN THE MUTUAL FUND INDUSTRY IS REELING OVER PERSONAL STOCK TRADING BY FUND MANAGERS WHAT'S ALLOWED AND WHAT'S NOT HERE ARE ANSWERS TO SOME QUESTIONS ON INVESTORS' MINDS IS IT LEGAL FOR FUND MANAGERS TO TRADE STOCKS FOR THEIR OWN ACCOUNT YES AS LONG AS THEY DON'T VIOLATE FEDERAL RULES AGAINST INSIDER TRADING OR ENRICH THEMSELVES AT FUND HOLDERS' EXPENSE HOW LONG HAS SUCH TRADING GONE ON FOR YEARS BUT THE ISSUE EXPLODED INTO PUBLIC CONSCIOUSNESS ONLY AFTER INVESCO FUNDS GROUP FIRED SUCCESSFUL MUTUAL FUND MANAGER JOHN KAWESKE JANUARY FOURTH FOR ALLEGEDLY FAILING TO REPORT TEN TO TWENTY PERSONAL TRADES THE FIRING DREW MORE SCRUTINY THAN IT MIGHT HAVE AT A PENSION FUND BECAUSE MUTUAL FUNDS ARE THE SMALL INVESTOR'S DOMAIN WHY DO MANAGERS TRADE STOCKS AT ALL WHEN THEY COULD JUST BUY MUTUAL FUNDS QUOTE YOU COULD WORK FOR A FUND GROUP THAT DIDN'T HAVE A FUND THAT MET YOUR INVESTMENT OBJECTIVES QUOTE SAYS JON FOSSEL PRESIDENT OF OPPENHEIMER MANAGEMENT CORPORATION OTHERS SAY EGO PLAYS A ROLE SOME MANAGERS BRAG ABOUT THEIR TRADING PROWESS WHY DON'T FUND COMPANIES JUST BAN PERSONAL TRADING YOU'RE USUALLY DEALING WITH VERY TALENTED MONEY MANAGERS SAYS ROY ADAMS A LAWYER AT HELLER EHRMAN WHITE AND MCAULIFFE IN SAN FRANCISCO YOU MAY HAVE TROUBLE HOLDING ON TO THEM IF YOU RESTRICT THEM UNDULY ARE THERE ANY BENEFITS FOR FUND SHAREHOLDERS TRACY GORDON A SPOKESWOMAN FOR FIDELITY INVESTMENTS BOSTON SAYS WE STRONGLY BELIEVE THAT ALLOWING OUR MANAGERS TO TRADE INDIVIDUAL STOCKS SHARPENS THEIR SKILLS EDUCATES THEM ABOUT THE MARKETS AND ULTIMATELY PRODUCES EVEN BETTER PERFORMANCE FOR OUR SHAREHOLDERS WHY HAS FIDELITY CAUGHT THE SECURITIES AND EXCHANGE COMMISSION'S EYE FIDELITY MANAGERS' TRADES ARE BEING EXAMINED BY THE S. E. C. BECAUSE FIDELITY IS THE BIGGEST FUND COMPANY AND BECAUSE OF ITS UNUSUAL CORPORATE CULTURE FIDELITY CULTIVATES A CLIMATE OF NEAR OBSESSION WITH STOCK MARKETS STOCK PICKING AND PERFORMANCE AND IT ENCOURAGES STOCK TRADING BY ITS ANALYSTS AND FUND MANAGERS WHAT STEPS IS FIDELITY TAKING FIDELITY TIGHTENED ITS RULES ON PERSONAL TRADES IN NOVEMBER A MOVE THAT THE FIRM SAID WASN'T RELATED TO ANY IMPROPER OR SUSPECT TRADING MOST MANAGERS SEEM TO ACCEPT THE NEW RULES ALBEIT WITH SOME BEEFING LAWRENCE D. GREENBERG MANAGER OF FIDELITY EMERGING GROWTH FUND IS SAID BY FIDELITY INSIDERS TO HAVE PUBLICLY OBJECTED IN A MEETING AT THE TIME THAT THE RULE CHANGES INFRINGED ON INDIVIDUAL RIGHTS FIDELITY WON'T COMMENT ON THAT AND MR. GREENBERG DIDN'T RETURN CALLS HOW IS MORALE AT FIDELITY SOME MANAGERS WHO DON'T WANT TO BE IDENTIFIED ARE UPSET THAT ACTIONS BY ANYONE AT THE FIRM MIGHT THREATEN FIDELITY'S REPUTATION SOME FEAR THE FREE FLOW OF INFORMATION AT FIDELITY MAY BE HINDERED A FEW WONDER IF SOME FIDELITY MANAGERS ESPECIALLY YOUNGER ONES MAY HAVE BENEFITED BY BUYING STOCKS FOR THEMSELVES TALKING UP THE STOCKS AROUND THE OFFICE WATER COOLER AND THEN SELLING PERSONAL HOLDINGS AFTER OTHER FIDELITY FUNDS HAD BOUGHT THE STOCKS WHICH CAN PUSH UP PRICES PEOPLE WHO HAVE HEARD SUCH TALK WITHIN FIDELITY SAY THESE FUND MANAGERS MAY HAVE ERRED UNWITTINGLY HOW MIGHT FUND MANAGERS TAKE UNFAIR ADVANTAGE OF THEIR STATUS ONE WAY WOULD BE TO BUY A STOCK FOR A PERSONAL ACCOUNT SHORTLY BEFORE A FUND DIRECTS A TORRENT OF BUY ORDERS AT THE STOCK AND DRIVES UP ITS PRICE THE MANAGER COULD SELL AT A QUICK PROFIT AN ILLEGAL PRACTICE CALLED FRONT RUNNING ANOTHER ILLEGALITY IS ACCEPTING COMPENSATION IN RETURN FOR BUYING A PARTICULAR STOCK FOR A FUND HOW IS TRADING MONITORED FUND COMPANIES ARE REQUIRED TO HAVE A SYSTEM AT SOME CODES OF ETHICS REQUIRE MORE FREQUENT CONFIRMATIONS OF MANAGER TRADES THAN THE QUARTERLY REPORTING THE S. E. C. MANDATES SOME REQUIRE PORTFOLIO MANAGERS TO GET PRIOR APPROVAL FOR TRADES OTHERS PRINT RESTRICTED LISTS OF STOCKS THAT CAN'T BE BOUGHT OR SOLD BECAUSE FUNDS ARE TRADING IN THEM OR INSIST THAT A PERSONAL TRADE CAN'T OCCUR WITHIN A CERTAIN NUMBER OF DAYS OF A FUND'S TRADE WHAT'S AT STAKE FOR THE FUND INDUSTRY HERE ITS STERLING REPUTATION S. E. C. COMMISSIONER J. CARTER BEESE JUNIOR POINTS OUT THAT UNLIKE BANKS WHICH HAVE DEPOSIT INSURANCE MUTUAL FUNDS HAVE QUOTE NO FEDERAL SAFETY NET THE ENTIRE MUTUAL FUND INDUSTRY DEPENDS ON THE TRUST AND CONFIDENCE OF THE INVESTING PUBLIC AMERICAN TELEPHONE AND TELEGRAPH COMPANY SAID IT WILL TAKE A ONE POINT THREE BILLION DOLLAR CHARGE TO COMPLY WITH NEW ACCOUNTING RULES AND COMPANY INSIDERS SAID THE TELECOMMUNICATIONS GIANT WILL CUT AS MANY AS ONE THOUSAND FIVE HUNDRED JOBS IN ITS INTERNAL COMPUTER OPERATIONS UNIT AN A. T. AND T. SPOKESMAN WHILE CONFIRMING THAT CUTS WERE PLANNED AT ITS INFORMATION MANAGEMENT SERVICES UNIT DECLINED TO SPECIFY HOW MANY QUOTE YOU COULD SAY IT WILL BE SUBSTANTIAL QUOTE HE SAID THE CHARGE AGAINST FOURTH QUARTER EARNINGS ANNOUNCED ON FRIDAY WILL AMOUNT TO TWO POINT ONE BILLION DOLLARS BEFORE TAXES A. T. AND T. SAID AND REFLECTS NEW ACCOUNTING RULES ON POST EMPLOYMENT BENEFITS AND PAYMENTS ON AN AFTER TAX PER SHARE BASIS THE CHARGE WILL BE NINETY SIX CENTS THE COSTS OF THE JOB CUTS AREN'T INCLUDED IN THE CHARGE EXCLUDING THE CHARGE EARNINGS WOULD HAVE BEEN ABOUT ONE POINT ONE FIVE BILLION DOLLARS OR EIGHTY FIVE CENTS A SHARE FOR THE FOURTH QUARTER IN LINE WITH ANALYSTS' EXPECTATIONS A. T. AND T. SAID THE COMPANY WILL REPORT ITS FOURTH QUARTER RESULTS BY THE END OF JANUARY ALL COMPANIES ARE REQUIRED TO ADOPT THE NEW ACCOUNTING RULE KNOWN AS FINANCIAL ACCOUNTING STANDARD ONE HUNDRED TWELVE BY THEIR FISCAL NINETEEN NINETY FOUR FIRST QUARTER IT REQUIRES THAT EMPLOYERS ACCRUE FOR THE ESTIMATED COSTS OF BENEFITS SUCH AS WORKERS' COMPENSATION AND DISABILITY BENEFITS PROVIDED TO FORMER OR INACTIVE EMPLOYEES WHO AREN'T ELIGIBLE FOR RETIREMENT IN A. T. AND T.'S CASE ABOUT ONE POINT ONE BILLION DOLLARS OF THE AFTER TAX CHARGE REFLECTS ACCUMULATED LIABILITIES IN NINETEEN NINETY TWO AND PRIOR YEARS AN ADDITIONAL TWO HUNDRED MILLION DOLLARS COVERS NINETEEN NINETY THREE GOING FORWARD WE EXPECT ON AVERAGE THAT WE WILL HAVE TO BOOK EXPENSES OF ABOUT TWO HUNDRED MILLION DOLLARS A YEAR BASED ON THE NEW RULE AN A. T. AND T. SPOKESMAN SAID BUT A. T. AND T. SAID THE TWO HUNDRED MILLION DOLLARS IN ADDITIONAL ANNUAL EXPENSES WON'T HAMPER ITS GOAL TO SHOW AT LEAST TEN PERCENT EARNINGS GROWTH ANNUALLY A. T. AND T. SAID ITS RESULTS ALSO WILL REFLECT CHARGES OF ABOUT ONE HUNDRED TWENTY MILLION DOLLARS FOR PREVIOUSLY ANNOUNCED RESTRUCTURING AND WORK FORCE REDUCTIONS AT ITS COMPUTER SUBSIDIARY N. C. R. CORPORATION THE CHANGE IN ACCOUNTING IS A NONEVENT SAID STEVEN R. YANIS AN ANALYST AT KIDDER PEABODY AND COMPANY A LOT OF COMPANIES ARE DOING THIS U. S. WEST INCORPORATED FOR EXAMPLE RECENTLY SAID IT WOULD SHOW A LOSS FOR NINETEEN NINETY THREE AFTER TAKING A ONE POINT EIGHT BILLION DOLLAR CHARGE IN PART TO COMPLY WITH THE NEW ACCOUNTING RULE THE CUTS OF BETWEEN ONE THOUSAND TWO HUNDRED AND ONE THOUSAND FIVE HUNDRED JOBS AT A. T. AND T. I. M. S. WHICH EMPLOYS ABOUT EIGHT THOUSAND WORKERS WAS DISCLOSED IN A NOVEMBER EIGHTEENTH INTERNAL A. T. AND T. MEMO OBTAINED BY THE WALL STREET JOURNAL IT INFORMED EMPLOYEES THAT I. M. S. MANAGERS WERE WORKING AGRESSIVELY ON PLANS TO DELIVER DRAMATIC IMPROVEMENTS IN OUR COST STRUCTURE QUALITY AND EFFICIENCY IN NINETEEN NINETY FOUR THE NOTICE SENT BY I. M. S. CHIEF RON J. PONDER THROUGH A. T. AND T.'S ELECTRONIC MAIL SYSTEM SAID THE UNIT'S RE SIZING COULD LEAD TO A SIGNIFICANT NUMBER OF BOTH MANAGEMENT AND OCCUPATIONAL EMPLOYEES LEAVING I. M. S. SLASH PROFESSIONAL SERVICES EITHER VOLUNTARILY OR INVOLUNTARILY HE ADDED THAT A. T. AND T. IS QUOTE ENCOURAGING PEOPLE TO PROACTIVELY PURSUE CAREER OPTIONS QUOTE A. T. AND T.'S SPOKESMAN SAID THE COMPANY WILL SEND NOTICES TO I. M. S. EMPLOYEES THIS WEEK ABOUT THE CUTBACKS MR. PONDER ISN'T THE ONLY MANAGER CONTEMPLATING CUTBACKS IN HIS FORCE AS ALREADY REPORTED A. T. AND T.'S GIANT LONG DISTANCE UNIT IS PREPARING THOUSANDS OF JOB CUTS AS IT RESIZES ITSELF TO COMPETE ON A COST BASIS WITH LEANER CARRIERS SUCH AS M. C. I. COMMUNICATIONS CORPORATION MR. SMITH'S COMPANY WORDSMITH COMMUNICATIONS GROUP INCORPORATED PUBLISHES THE A. T. AND T. ALUMNI DIRECTORY WE'RE ADDING NAMES ALL THE TIME HE SAID THE NUMBER OF FRENCH CORPORATE BANKRUPTCIES LIQUIDATIONS AND LEGAL SETTLEMENTS ROSE TO SIX THOUSAND TWENTY ONE IN NOVEMBER NINETEEN NINETY THREE FROM FOUR THOUSAND FIVE HUNDRED NINETY SEVEN IN NOVEMBER NINETEEN NINETY TWO ACCORDING TO SEASONALLY ADJUSTED STATISTICS PUBLISHED BY THE NATIONAL STATISTICS INSTITUTE THE INSTITUTE SAID THAT FOR THE TWELVE MONTH PERIOD FROM DECEMBER NINETEEN NINETY TWO THROUGH NOVEMBER NINETEEN NINETY THREE BUSINESS FAILURES WERE UP TWELVE POINT FIVE PERCENT FROM THE PRIOR PERIOD REPRESENTING A FAILURE RATE OF THREE POINT THREE PERCENT AMONG ALL FRENCH BUSINESSES RYLAND GROUP INCORPORATED SAID IT PLANS TO CHANGE ITS FOCUS IN CALIFORNIA BY BUILDING HOMES TARGETED AT THE ENTRY LEVEL HOME BUYER TO TAKE ADVANTAGE OF LOW INTEREST RATES THE HOMEBUILDER WHICH MARKETS UNDER THE BROCK AND LARCHMONT NAMES IN CALIFORNIA HAS FOCUSED ON MORE EXPENSIVE HOUSING IN THE THIRD QUARTER RYLAND DECIDED TO TAKE A FORTY MILLION DOLLAR RESERVE ON ITS HOME BUILDING INVENTORIES IN SOUTHERN CALIFORNIA REFLECTING WITHDRAWAL FROM HIGHER END BUILDING WHICH HAS BEEN HIT HARD BY HIGH LAND COSTS THERE'S A WIDENING CULTURAL GAP IN JAPAN THESE DAYS BETWEEN BULLISH FOREIGN ECONOMISTS AND THEIR PESSIMISTIC JAPANESE COUNTERPARTS THE DISAGREEMENT OVER THE OUTLOOK FOR JAPAN'S AILING ECONOMY HAS REACHED REMARKABLE LEVELS PARTICULARLY IN FORECASTS OF CORPORATE PRETAX EARNINGS FOR THE YEAR THAT STARTS APRIL FIRST THE EXPLANATION STEMS FROM A DIFFERING VIEW OF JAPAN'S RISING JOBLESSNESS AND ITS IMPACT ON CONSUMER SPENDING AND BUSINESS SALES SOME WESTERN ANALYSTS WHO HAVE SEEN EARNINGS RECOVER AMID CORPORATE BLOODLETTING ARE RELATIVELY CONFIDENT ABOUT JAPAN'S SHORT TERM PROSPECTS THEY SEE CONSUMER SPENDING IMPROVING OR HOLDING STEADY DESPITE JOB CUTS AND REDUCED OVERTIME AND ARE UPBEAT ABOUT THE PROSPECTS FOR HEALTHIER CORPORATE BOTTOM LINES BARING SECURITIES JAPAN LIMITED ECONOMIST GEOFFREY BARKER SAYS JAPANESE PRETAX PROFIT MAY REBOUND AS MUCH AS FORTY PERCENT NEXT FISCAL YEAR QUOTE IF THE U. S. CAN DO IT IN NINETY TWO JAPAN CAN DO IT IN NINETY FOUR QUOTE SAYS MR. BARKER THE JAPANESE ON THE WHOLE DISAGREE AND THE DEBATE SAYS A GREAT DEAL ABOUT THE DIFFERENCES IN MENTALITY AMONG THE TWO GROUPS AMONG THE BIGGEST BEARS IS INDUSTRIAL BANK OF JAPAN ECONOMIST KOZO KOIDE WHO SEES AN ELEVEN PERCENT PLUNGE IN EARNINGS THOUGH JAPANESE COMPANIES LARGELY HAVE AVOIDED LARGE SCALE LAYOFFS AND OTHER JARRING WESTERN STYLE RESTRUCTURING MOVES MORE WORKERS ARE CONCERNED ABOUT THEIR JOBS MR. KOIDE AND OTHERS BELIEVE IT WILL TAKE SOME TIME FOR CONSUMER SENTIMENT TO RECOVER IN A LAND WHERE LIFETIME EMPLOYMENT IS THE IDEAL THE LABOR SITUATION IS GOING TO WORSEN IN NINETEEN NINETY FOUR MAKING IT HARD TO LOOSEN THE PURSE STRINGS SAYS MR. KOIDE JAPAN IS ALL BUT CERTAIN TO SEE A FOURTH CONSECUTIVE YEAR OF DECLINING PRETAX PROFIT FOR THE YEAR ENDING MARCH THIRTY FIRST MEANWHILE JAPAN'S UNEMPLOYMENT RATE HAS RISEN TO TWO POINT EIGHT PERCENT A SIX YEAR HIGH AND OBSERVERS ON BOTH SIDES BELIEVE THE RATE COULD TOP THE RECORD THREE POINT ONE PERCENT THIS CALENDAR YEAR THE DIFFERING SCHOOLS OF THOUGHT DON'T SPLIT PURELY ALONG ETHNIC LINES ONE OF THE PESSIMISTS IS LEHMAN BROTHERS ANALYST PAUL SUMMERVILLE WHO EXPECTS EARNINGS TO FALL BETWEEN TEN PERCENT AND FIFTEEN PERCENT NEXT FISCAL YEAR AND THE WIDE RANGE IN FORECASTS IS UNDERSTANDABLE GIVEN THE UNCERTAINTY OVER VARIABLES SUCH AS THE YEN DOLLAR EXCHANGE RATE WHICH SWAYS EXPORTERS' EARNINGS MANY JAPANESE COMPANIES EXPECT THE RATE TO FLUCTUATE BETWEEN ONE HUNDRED YEN AND ONE HUNDRED TWENTY YEN TO THE DOLLAR BUT MANY ECONOMISTS DO EMPHASIZE THE CULTURAL SPLIT AND NOTE THAT LAST YEAR THE ROLES LARGELY WERE REVERSED JAPANESE ECONOMISTS PARTICULARLY AT JAPANESE INSTITUTIONS ON THE WHOLE WERE SLOWER THAN FOREIGN ECONOMISTS TO FORECAST THE WEAKER GROWTH THAT SINCE HAS PLAGUED THE NATION MOST OF THE JAPANESE INSTITUTIONS IN THE PAST COUPLE OF YEARS WERE TOO OPTIMISTIC SAYS DONALD KIMBALL AN AMERICAN ECONOMIST AT MITSUBISHI BANK LIMITED THE PESSIMISTS CAN CITE PLENTY OF GRIST FOR THEIR MILL BECAUSE OF THE WORSENING LABOR SITUATION PEOPLE'S EXPECTED LIFETIME EARNINGS HAVE FALLEN IN THE LAST YEAR SAYS I. B. J.'S MR. KOIDE WHO HAS BEEN BEARISH FOR SOME TIME THAT DASHING OF HOPES HE BELIEVES WILL SUPPRESS THE SPURT IN CONSUMER SPENDING NEEDED TO BUOY CORPORATE SALES HE RECKONS THAT WILL BE THE CASE EVEN IF JAPAN'S GOVERNMENT SLASHES INCOME TAXES WHICH MANY PEOPLE AND THE U. S. ADMINISTRATION ARE PUSHING FOR SOME BEARS NOTE THAT DESPITE THE ANXIETY OVER JOBS JAPANESE COMPANIES AREN'T CUTTING LABOR COSTS FAST ENOUGH TO WIDEN THEIR MARGINS WHICH HAVE SHRUNK TO AN EIGHTEEN YEAR LOW OF ONE POINT FOUR PERCENT OF SALES THAT IS BECAUSE MOST BIG JAPANESE COMPANIES STILL FOLLOW TRADITIONAL LABOR PRACTICES SUCH AS LIFETIME JOBS AND ANNUAL WAGE INCREASES SUSUMU KATO ECONOMIST AT C. S. FIRST BOSTON JAPAN LIMITED BELIEVES THE COST OF LABOR WILL GROW TWO PERCENT OR THREE PERCENT NEXT FISCAL YEAR OUTWEIGHING LOWER DEPRECIATION COSTS THAT WILL HELP DRAG DOWN CORPORATE EARNINGS FIVE PERCENT OR MORE HE PREDICTS SOME WESTERN ANALYSTS IN TOKYO ARGUE THAT THE PESSIMISTS OVEREMPHASIZE THE LABOR SITUATION IN JAPAN WHERE YOU HAVE A FULL EMPLOYMENT TRADITION IT'S NOT OBVIOUS THAT YOU CAN HAVE GROWTH WITHOUT FULL EMPLOYMENT SAYS S. G. WARBURG STRATEGIST TOM HILL IN MY VIEW RISING UNEMPLOYMENT SHOULD BE ASSOCIATED WITH RISING PROFIT SINCE JOB LOSS SIGNALS THAT COMPANIES ARE PARING COSTS MR. HILL PLACES GREATER WEIGHT ON OTHER FACTORS JAPAN'S RECORD LOW INTEREST RATES HE SAYS PUT MONEY IN CORPORATE COFFERS BY SLASHING INTEREST PAYMENTS TO CREDITORS THE YEN SHOULD WEAKEN TO ONE HUNDRED TWENTY OR ONE HUNDRED TWENTY FIVE TO THE DOLLAR HE BELIEVES A SHIFT THAT WOULD BOOST THE COMPETITIVENESS OF EXPORTERS THE JAPANESE CURRENCY HAS WEAKENED TO ONE HUNDRED ELEVEN POINT SEVEN THREE AGAINST THE DOLLAR SINCE NEARING PARITY WITH THE PENNY IN AUGUST SO DESPITE WEAK GROSS DOMESTIC PRODUCT GROWTH OF ONE PERCENT NEXT BUSINESS YEAR EARNINGS SHOULD ADVANCE THIRTY PERCENT HE ARGUES BARING'S MR. BARKER IS EVEN MORE UPBEAT BOOMING MARKETS IN COUNTRIES LIKE THE U. S. WILL BUTTRESS EXPORTERS' SALES HE SAYS MOREOVER HE SAYS THE CURRENT PRICE SLASHING IN JAPAN'S NEW DISCOUNT STORES WILL LURE CONSUMERS INTO SHOPS DESPITE JOB ANXIETIES WHO'S RIGHT CONSUMER SPENDING HASN'T COLLAPSED SAY THE BULLS DESPITE THE JUMP IN UNEMPLOYMENT BUT THE BEARS ARGUE THAT THE WORST IS YET TO COME QUOTE WE'RE FACING A VERY INTERESTING TEST POINT FOR BOTH CAMPS QUOTE IN THE COMING MONTHS SAYS MR. HILL ONE BIG TEST SHOULD COME THIS MONTH WHEN JAPAN'S GOVERNMENT PROMISES TO DELIVER DETAILS ON NEW MEASURES TO SPUR THE ECONOMY JAPANESE LEADERS HAVE MISSED DEADLINES FOR ACTION ON THE ECONOMY IN RECENT MONTHS HOWEVER THE LATEST SIGNALS FROM POLITICIANS SUGGEST LEADERS MAY BE CONSIDERING A PACKAGE OF ADDITIONAL STIMULATIVE SPENDING FOR THE REMAINDER OF THE FISCAL YEAR INCLUDING AS MUCH AS FOUR TRILLION YEN THIRTY FIVE POINT FIVE EIGHT BILLION DOLLARS IN PUBLIC WORKS BUSINESS LEADERS ALSO ARE AWAITING AN EXPECTED INCOME TAX CUT RECENT NUMBERS REPORTED IN THE MEDIA PUT ITS SIZE AT AS MUCH AS SEVEN TRILLION YEN FINANCE MINISTRY OFFICIALS SAY TAX CUT DETAILS HAVEN'T BEEN WORKED OUT SUPERCUTS INCORPORATED SAID SALES AT STORES OPEN A YEAR OR LONGER GREW MORE THAN FIVE PERCENT IN NINETEEN NINETY THREE'S FOURTH QUARTER FULL RESULTS WILL BE ANNOUNCED IN EARLY MARCH FOR THE CURRENT YEAR THE HAIR CARE CHAIN SAID IT EXPECTS SALES OVERALL TO INCREASE TWELVE PERCENT TO FIFTEEN PERCENT WHILE IT EXPECTS SALES IN STORES OPEN A YEAR OR MORE TO INCREASE BY FOUR POINT FIVE PERCENT TO FIVE POINT FIVE PERCENT SUPERCUTS ALSO SAID IT WILL OPEN ONE HUNDRED FIFTY STORES THIS YEAR INCLUDING FIFTY IN METROPOLITAN NEW YORK JOHN DODDRIDGE VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MAGNA INTERNATIONAL GARY JACOBS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LAREDO NATIONAL BANCSHARES INCORPORATED AND LAREDO NATIONAL BANK AND JOSEPH WELCH OWNER AND CHIEF EXECUTIVE OFFICER OF J. F. WELCH INTERESTS INCORPORATED WERE NAMED DIRECTORS OF THIS MAKER OF HEAVY DUTY DIESEL ENGINES AND ENGINE PARTS INCREASING THE BOARD'S SIZE TO NINE SHOREWOOD PACKAGING CORPORATION SAID IT COMPLETED ACQUISITION OF THE ASSETS OF SOMERVILLE PACKAGING'S PREMIUM PACKAGING GROUP FROM CASCADES PAPERBOARD INTERNATIONAL INCORPORATED FOR ONE HUNDRED MILLION DOLLARS AND A POSSIBLE CONTINGENT FIVE MILLION DOLLAR PAYMENT SOMERVILLE A MANUFACTURER OF FOLDING CARTONS FOR THE TOBACCO COSMETICS TOILETRIES AND GENERAL CONSUMER INDUSTRIES REPORTED ONE HUNDRED THIRTY NINE MILLION DOLLARS IN SALES FOR THE YEAR ENDED AUGUST THIRTY FIRST SHOREWOOD SAID IT HAD ABOUT ONE HUNDRED EIGHTY FOUR MILLION DOLLARS IN SALES FOR THE YEAR ENDED APRIL THIRTIETH STANDARD AND POOR'S CORPORATION DOWNGRADED THIS FOOD CONCERN'S SENIOR DEBT TO TRIPLE B. FROM TRIPLE B. PLUS TO REFLECT THE COMPANY'S QUOTE WEAK OPERATING PERFORMANCE AND RELATED FINANCIAL DETERIORATION QUOTE ABOUT TWO POINT TWO BILLION DOLLARS OF TOTAL DEBT IS OUTSTANDING BORDEN'S COMMERCIAL PAPER RATING WAS AFFIRMED THE COMPANY HAD NO COMMENT S. AND P. SAID BORDEN IS IN A TRANSITION PERIOD AND RATINGS ARE DEPENDENT UPON THE CREDIBILITY OF THE NEW MANAGEMENT TEAM IN ACHIEVING ITS STATED NINETEEN NINETY FOUR GOALS IT ADDED THE NEGATIVE RATINGS OUTLOOK REFLECTS THE POTENTIAL THAT BORDEN MAY NOT REACH ITS DESIRED RESULTS GIVEN THE VERY COMPETITIVE INDUSTRY CONDITIONS S. AND P. DID NOTE BORDEN'S LATEST RESTRUCTURING PROGRAM ANNOUNCED EARLIER THIS MONTH WHICH IS EXPECTED TO IMPROVE OVERALL PERFORMANCE FIRST BANK SYSTEM MINNEAPOLIS MOODY'S INVESTORS SERVICE INCORPORATED SAID IT UPGRADED THE LONG TERM DEBT OF THIS BANKING COMPANY AND RAISED SUBORDINATED DEBT RATINGS ON OF ONE OF ITS SUBSIDIARIES THE ACTIONS WHICH MOODY'S ATTRIBUTED TO SUSTAINED IMPROVEMENT IN ASSET QUALITY EARNINGS AND CAPITAL AFFECTED ABOUT ONE POINT FOUR BILLION DOLLARS IN SECURITIES MOODY'S SAID THE RATING COMPANY RAISED FIRST BANK SYSTEM'S SENIOR DEBT TO SINGLE A TWO FROM SINGLE A THREE ITS SUBORDINATED DEBT TO SINGLE A THREE FROM B. A. A. ONE AND ITS PREFERRED STOCK TO SINGLE A THREE FROM B. A. A. ONE IT ALSO UPGRADED THE SUBORDINATED DEBT OF FIRST BANK NATIONAL ASSOCIATION TO SINGLE A TWO FROM SINGLE A THREE FIRST FIDELITY BANCORP STANDARD AND POOR'S CORPORATION RAISED ITS RATINGS ON ABOUT SIX HUNDRED MILLION DOLLARS OF LONG TERM DEBT OF THIS HOLDING COMPANY AND ITS FIRST FIDELITY BANKS INCORPORATED UNIT INCLUDING UPGRADES OF SUBORDINATE DEBT TO TRIPLE B. PLUS FROM TRIPLE B. IT ALSO RAISED THE RATING ON THE HOLDING COMPANY'S PREFERRED STOCK TO TRIPLE B. FROM TRIPLE B. MINUS S. AND P. SAID THE UPGRADES REFLECT THE BANK'S SOLID FINANCIAL CONDITION AND FAVORABLE OPERATING TRENDS SHERRITT INCORPORATED FORD SASKATCHEWAN ALBERTA STANDARD AND POOR'S CORPORATION PUT THE SENIOR UNSECURED DEBT ON THIS FERTILIZER ENERGY AND METALS CONCERN ON CREDITWATCH WITH NEGATIVE IMPLICATIONS BECAUSE OF SHERRITT'S NEGOTIATIONS TO BUY THE FERTILIZER BUSINESS OF IMPERIAL OIL LIMITED THE MOVE AFFECTS ABOUT TWO HUNDRED MILLION DOLLARS U. S. OF DEBT CURRENTLY RATED DOUBLE B. MINUS THE RATING AGENCY SAID THAT DEPENDING ON THE PURCHASE PRICE AND METHOD OF FINANCING THE ACQUISITION COULD RESULT IN GREATER FINANCIAL RISK FOR SHERRITT WHEN GENERAL ELECTRIC CAPITAL CORPORATION WENT ON THE ROAD TO PROMOTE A THREE HUNDRED MILLION DOLLAR NOTE ISSUE LAST OCTOBER IT MADE SOME UNUSUAL STOPS ALONG WITH THE TRADITIONAL TRIP TO HONG KONG THE U. S. COMPANY VISITED SHANGHAI AND BEIJING THE DETOUR PAID OFF ROUGHLY THIRTY PERCENT OF THE OFFERING AIMED AT NON JAPANESE INVESTORS IN ASIA WAS SNAPPED UP BY CHINESE FINANCIAL INSTITUTIONS QUOTE THERE ARE CLEARLY A LOT OF INTERNATIONAL INVESTORS IN CHINA QUOTE SAYS JEFFREY WERNER TREASURER OF G. E. CAPITAL THE FINANCE UNIT OF U. S. BASED GENERAL ELECTRIC COMPANY G. E. ISN'T ALONE IN MAKING THAT DISCOVERY MOST PEOPLE THINK OF CHINA AS A MAJOR IMPORTER OF CAPITAL ITS STATE OWNED COMPANIES RAISED A RECORD ONE POINT SEVEN BILLION DOLLARS THROUGH OVERSEAS SALES OF DEBT SECURITIES LAST YEAR BUT CHINESE INSTITUTIONS ALSO ARE EMERGING AS EXPORTERS OF FUNDS IN THE PAST FEW YEARS THEY HAVE QUIETLY BECOME ASIA'S FASTEST GROWING INVESTOR BASE FOR FOREIGN GOVERNMENT AND CORPORATE BONDS AS THE CHINESE ECONOMY ROARS AHEAD AT AN ANNUAL CLIP OF TWELVE PERCENT TO THIRTEEN PERCENT THE COUNTRY'S FINANCIAL INSTITUTIONS ARE FLUSH WITH FOREIGN FUNDS GENERATED BY EXPORTS AND THE INFLOW OF FOREIGN INVESTMENT WHILE THE BANKS PLOW SOME OF THOSE FUNDS INTO THE DOMESTIC ECONOMY TO FINANCE INFRASTRUCTURE AND OTHER PROJECTS THEY ARE EAGER TO INVEST MUCH OF THE CASH ABROAD THE CAPITAL FLOW IS NO LONGER A ONE WAY STREET SAYS TOMOO HAYAKAWA PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ASIAN FINANCE AND INVESTMENT CORPORATION A SINGAPORE BASED AFFILIATE OF ASIAN DEVELOPMENT BANK HONG KONG TAIWAN AND SINGAPORE REMAIN THE REGION'S BIGGEST INVESTORS OUTSIDE JAPAN IN FOREIGN DEBT SECURITIES BUT CHINA IS GAINING GROUND ON THEM ALTHOUGH NO PRECISE FIGURES ARE AVAILABLE BANKERS SAY ROUGHLY A DOZEN CHINESE INSTITUTIONS REGULARLY TAKE UP FIFTEEN PERCENT TO TWENTY PERCENT OF OFFERINGS OF HONG KONG DOLLAR DENOMINATED BONDS AND SO CALLED DRAGON BONDS WHICH ARE DEBT SECURITIES AIMED AT BUYERS IN ASIA OUTSIDE OF JAPAN THE PORTION RISES TO TWENTY FIVE PERCENT OR THIRTY PERCENT WHEN THE DRAGON BONDS ARE FROM A CHINESE ISSUER JUST FIVE YEARS AGO BANKERS SAY CHINA'S ROLE IN THE MARKET WAS NEGLIGIBLE CHINESE DEMAND FOR SUCH INVESTMENTS HAS GROWN WITH ITS FOREIGN EXCHANGE RESERVES THE RESERVES HELD BOTH BY PEOPLE'S BANK OF CHINA AND STATE OWNED BANK OF CHINA STOOD AT FORTY ONE POINT FOUR BILLION DOLLARS AS OF SEPTEMBER THIRTIETH THAT'S UP FIFTY PERCENT FROM THE END OF NINETEEN NINETY THOUGH IT IS BELOW THE PEAK OF FORTY FIVE BILLION DOLLARS RECORDED IN DECEMBER NINETEEN NINETY TWO BOND TRADERS SAY CHINESE INVESTORS ARE HIGHLY PROFESSIONAL AND IN MANY CASES MORE AGGRESSIVE THAN THEIR COUNTERPARTS IN OTHER ASIAN COUNTRIES TAIWAN'S CENTRAL BANK OF CHINA FOR EXAMPLE IS THE BIGGEST FOREIGN BUYER OF U. S. TREASURY SECURITIES BUT IT TENDS TO STICK TO THE CAUTIOUS STRATEGY OF HOLDING THE PAPER UNTIL MATURITY INVESTORS IN CHINA TRADE IN AND OUT OF THE MARKET A LOT FOR SHORT TERM TRADING GAINS SAYS BRYAN CHAN ASSISTANT MANAGER AT YAMAICHI INTERNATIONAL H. K. LIMITED'S INTERNATIONAL BOND DIVISION ON A DAY OF ACTIVE TRADING TRANSACTIONS FROM CHINESE INVESTORS ACCOUNT FOR ROUGHLY THIRTY PERCENT OF TOTAL TRADING VOLUME OF HIS OFFICE IN HONG KONG MR. CHAN SAYS THE OFFICE ALSO DEALS WITH INVESTORS IN HONG KONG TAIWAN AND THE PHILIPPINES MUCH OF CHINA'S BOND MARKET SAVVY COMES FROM BANK OF CHINA WHOSE EXTENSIVE INTERNATIONAL BRANCH NETWORK HAS GIVEN IT EXPERIENCE IN FOREIGN MARKETS UNTIL ABOUT TWO YEARS AGO BANK OF CHINA MANAGED THE COUNTRY'S FOREIGN RESERVES PEOPLE'S BANK CHINA'S CENTRAL BANK IS GRADUALLY TAKING OVER THAT DUTY BUT BANK OF CHINA STILL MANAGES THE BULK OF THE RESERVES UNLIKE TAIWAN WHERE THE CENTRAL BANK IS VERY BUREAUCRATIC CHINA'S RESERVES ARE MANAGED BY PEOPLE WHO ARE MORE OR LESS COMMERCIAL BANKERS SAYS A BOND TRADER WITH A EUROPEAN BANK MOST AGGRESSIVE ARE THE NEWCOMERS SUCH AS THE SHANGHAI BRANCH OF INDUSTRIAL AND COMMERCIAL BANK OF CHINA AND BANK OF COMMUNICATIONS IN SHANGHAI MANY OF THE BANKS' CORPORATE AND INDIVIDUAL DEPOSITORS WORRIED ABOUT INFLATION AND THE RISK OF DEVALUATION INSIST ON HOLDING FOREIGN CURRENCY RATHER THAN THE YUAN SOME OF THOSE DEPOSITS ARE INVESTED IN INTERNATIONAL DEBT SECURITIES CHINESE INVESTORS SEEM MOST EAGER TO BUY PAPER WITH TRIPLE A RATINGS AND HIGH NAME RECOGNITION HENCE THE POPULARITY OF G. E. CAPITAL'S NOTES A COMPANY OFFICIAL SAYS G. E. CAPITAL DECIDED TO TAKE ITS ROADSHOW TO CHINA AFTER NOTICING THAT A SIGNIFICANT PORTION OF ITS HONG KONG DOLLAR DENOMINATED NOTES ISSUED IN THE PAST YEAR HAD BEEN BOUGHT BY CHINESE FINANCIAL INSTITUTIONS BOMBARDIER INCORPORATED SAID IT WILL ISSUE THROUGH A PUBLIC OFFERING TEN MILLION CLASS B. COMMON SHARES AT TWENTY ONE POINT EIGHT SEVEN FIVE CANADIAN DOLLARS SIXTEEN U. S. DOLLARS AND FIFTY FIVE CENTS EACH BOMBARDIER CURRENTLY HAS ONE HUNDRED FIFTY FIVE MILLION COMMON SHARES OUTSTANDING INCLUDING ONE HUNDRED TEN MILLION CLASS B. SHARES IN TRADING ON THE MONTREAL EXCHANGE FRIDAY THE CLASS B. SHARES CLOSED AT TWENTY ONE CANADIAN DOLLARS AND SEVENTY FIVE CENTS DOWN THIRTY SEVEN POINT FIVE CENTS SCOTIAMCLEOD INCORPORATED IS LEAD UNDERWRITER FOR THE OFFERING BOMBARDIER A TRANSPORTATION EQUIPMENT MAKER SAID IT WILL USE THE NET PROCEEDS OF ABOUT TWO HUNDRED TEN MILLION CANADIAN DOLLARS TO INCREASE WORKING CAPITAL ADOLPH COORS COMPANY SAID ITS COORS BREWING COMPANY SUBSIDIARY REACHED RECORD BEVERAGE SALES VOLUME FOR THE YEAR ENDED DECEMBER TWENTY SIXTH NINETEEN NINETY THREE OF NINETEEN POINT EIGHT MILLION BARRELS UP ONE POINT THREE PERCENT FROM THE PREVIOUS YEAR'S NINETEEN POINT SIX MILLION BARRELS THE COMPANY SAID HOWEVER THAT BEER SALES FOR ITS FOURTH QUARTER DECLINED THREE POINT SIX PERCENT TO FOUR POINT TWO MILLION BARRELS FROM FOUR POINT FOUR MILLION BARRELS A YEAR EARLIER THE BREWER BLAMED THE DROP ON AN ANTICIPATED REDUCTION IN DISTRIBUTOR INVENTORIES IN THE QUARTER AND AN INCREASE IN DISTRIBUTOR INVENTORIES IN THE YEAR EARLIER PERIOD OFFICIALS SAID COORS BREWING'S SALES VOLUME ISN'T NECESSARILY INDICATIVE OF THE FINANCIAL PERFORMANCE OF ADOLPH COORS PAGING NETWORK INCORPORATED DALLAS SAID IT SOLD THREE HUNDRED MILLION DOLLARS OF SENIOR SUBORDINATED NOTES DUE TWO THOUSAND SIX PRICED AT EIGHT AND SEVEN EIGHTHS PERCENT FOR SALE AT PAR THE SALE WAS AN INCREASE FROM TWO HUNDRED MILLION DOLLARS OF NOTES ORIGINALLY OFFERED THE PAGING SERVICES CONCERN SAID THE NOTES ARE RATED SINGLE B. TWO AND SINGLE B. BY MOODY'S INVESTORS SERVICE INCORPORATED AND STANDARD AND POOR'S CORPORATION RESPECTIVELY THE NOTES WERE DRAWN FROM THE COMPANY'S RECENTLY FILED SIX HUNDRED MILLION DOLLAR SHELF REGISTRATION PAGING NETWORK SAID IT WILL USE NET PROCEEDS OF THE SALE TO REPAY THE DEBT UNDER ITS REVOLVING CREDIT AGREEMENT AND FOR GENERAL CORPORATE PURPOSES GOLDMAN SACHS AND COMPANY LED THE UNDERWRITING WITH FEW APOLOGIES AND EVEN FEWER REGRETS THE CLINTON ADMINISTRATION IS WALKING AWAY FROM EL SALVADOR SLASHING AID ALMOST SIXTY PERCENT FROM TWO HUNDRED THIRTY MILLION DOLLARS IN NINETEEN NINETY THREE TO WHAT OFFICIALS SAY WILL BE NINETY FOUR MILLION DOLLARS THIS YEAR THE ADMINISTRATION'S BIG PICTURE PLANNERS ARGUE THAT WITH A PEACE SETTLEMENT HOLDING IN EL SALVADOR AND ITS ECONOMY REBOUNDING U. S. AID CAN BE BETTER SPENT ELSEWHERE MOST NOTABLY IN RUSSIA A FLURRY OF RECENT NEWS REPORTS DETAILING THE REAGAN AND BUSH ADMINISTRATIONS' MISALLIANCES WITH DEATH SQUADS AND OTHER ASSORTED THUGS IN EL SALVADOR HAS ONLY REINFORCED THEIR DECISION TO DECLARE VICTORY AND RETREAT THAT VICTORY MAY PROVE FRAGILE AND THE U. S. MAY QUICKLY REGRET THE LOSS OF LEVERAGE A RECENT SPATE OF KILLINGS HAS RAISED FEARS THAT THE DEATH SQUADS MAY BE CONTEMPLATING A COMEBACK AND SOME U. S. ANALYSTS WORRY THAT THE FRONT RUNNER IN THE MARCH PRESIDENTIAL ELECTIONS RIGHTIST SAN SALVADOR MAYOR ARMANDO CALDERON SOL MAY BE UNWILLING OR UNABLE TO RESTRAIN EXTREME ELEMENTS OF HIS CONSERVATIVE ARENA PARTY U. S. OFFICIALS SAY THEY AREN'T SURE WHO IS BEHIND THE KILLINGS LAST YEAR OF FOUR GUERRILLA COMMANDERS TURNED POLITICIANS DEATHS ORIGINALLY DISMISSED BY THE SALVADORAN GOVERNMENT AS QUOTE COMMON CRIMES QUOTE BUT THEY WERE WORRIED ENOUGH TO DISPATCH ASSISTANT SECRETARY OF STATE ALEXANDER WATSON IN NOVEMBER TO WARN AGAINST A RENEWAL OF POLITICAL VIOLENCE AND TO HINT AT A CUTOFF OF AID LAST AUGUST WHEN IT LOOKED LIKE TENS OF THOUSANDS OF SALVADORAN VOTERS MIGHT NOT BE REGISTERED IN TIME FOR THE MARCH TWENTIETH ELECTIONS A TEMPORARY FREEZE ON SEVENTY MILLION DOLLARS IN U. S. AID HELPED PERSUADE SALVADORAN OFFICIALS TO SPEED UP THE PROCESS WHILE U. S. OFFICIALS SAY THEY NOW BELIEVE THE ELECTIONS WILL BE FAIR AND COMPARATIVELY PEACEFUL THEY CLEARLY ARE NERVOUS THAT THE EXPECTED VICTOR MR. CALDERON SOL WILL BE EVEN LESS AMENABLE TO U. S. PERSUASION THAN HIS PREDECESSORS U. S. ANALYSTS GIVE MR. CALDERON SOL GOOD MARKS FOR HIS TENURE AS MAYOR AND SAY HE HAS RUN A MODERATE AND RESPECTABLE CAMPAIGN FOR THE PRESIDENCY THEY ALSO SAY THEY HAVE NO HARD EVIDENCE THAT MR. CALDERON SOL WAS EVER PERSONALLY INVOLVED WITH THE DEATH SQUADS AT THE SAME TIME THEY DESCRIBE HIM AS AN ENTHUSIASTIC ACOLYTE OF THE ARENA PARTY'S LATE FOUNDER AND ALLEGED DEATHSQUAD LEADER CASHIERED MAJOR ROBERTO D'AUBUISSON MOREOVER UNLIKE THE CURRENT PRESIDENT ALFREDO CRISTIANI MR. CALDERON SOL HAS VERY LITTLE AFFECTION FOR THE U. S. AND FAR LESS SOPHISTICATION WHEN IT COMES TO THE WORKINGS OF AMERICAN POLITICS THE U. S. OFFICIALS SAY MR. CALDERON SOL WAS FURIOUS WHEN THE STATE DEPARTMENT RECENTLY DECLASSIFIED A DIPLOMATIC CABLE ONE OF THOUSANDS MADE PUBLIC ALLEGING THAT HIS HOME HAD BEEN USED TO PLOT A RIGHT WING KIDNAPPING MORE THAN A DECADE AGO HE SAW IT AS A PLOT BY WASHINGTON TO GET HIM SAYS ONE AMERICAN ANALYST WHOEVER WINS THE ELECTION LEFTIST LEADER RUBEN ZAMORA IS RUNNING A DISTANT SECOND IN THE POLLS WITH CHRISTIAN DEMOCRAT FIDEL CHAVEZ MENA EVEN FURTHER BEHIND WILL NEED BOTH GOADING AND SUPPORT FROM THE U. S. TO SOLIDIFY THE PEACE A PROMISED LAND REFORM THAT WAS AT THE HEART OF THE NINETEEN NINETY TWO PEACE ACCORD HAS LAGGED BADLY WHILE JUDICIAL REFORM HAS GONE NOWHERE AT ALL ACCORDING TO U. S. ANALYSTS EFFORTS TO CREATE AN IMPARTIAL POLICE FORCE ANOTHER KEY PORTION OF THE PEACE AGREEMENT HAVE BEEN MIXED THE NOTORIOUS TREASURY POLICE AND NATIONAL GUARD HAVE BEEN ABOLISHED WHILE NEW UNITS OF A LESS POLITICIZED HUMAN RIGHTS CONSCIOUS NATIONAL CIVILIAN POLICE HAVE BEEN PLACED IN FIVE OF EL SALVADOR'S FOURTEEN DEPARTMENTS AT THE SAME TIME THE GOVERNMENT CONTINUES TO FUND AND TRAIN THE OLD POLICE FORCE AND IT HAS TRANSFERRED MEMBERS OF THE OLD SECURITY FORCES TO KEY POSITIONS IN THE NEW POLICE LAST WEEK MR. ZAMORA CHARGED THAT RIGHT WING DEATH SQUADS ARE AGAIN OPERATING FROM INSIDE BOTH THE ARMY AND THE POLICE ALBEIT WITH LESS INSTITUTIONAL SUPPORT THAN IN THE PAST STRUGGLING TO PUT THE BEST FACE ON A BAD SITUATION ONE U. S. OFFICIAL POINTS OUT THAT WITH A RELATIVELY STRONG ECONOMY GROWTH LAST YEAR WAS FIVE PERCENT WITH THE SAME LEVEL EXPECTED IN NINETEEN NINETY FOUR EL SALVADOR MAY BE BETTER PREPARED THAN OTHER COUNTRIES TO WEATHER WHAT WILL BE ACROSS THE BOARD CUTBACKS IN AID TO LATIN AMERICA THIS YEAR OVERALL AID TO THE REGION IS EXPECTED TO DROP BY MORE THAN A THIRD QUOTE IF YOU REALLY WANT TROUBLE LOOK AT NICARAGUA QUOTE SAYS THE OFFICIAL WHO ADDS THAT NICARAGUA'S FOREIGN RESERVES QUOTE ARE NEXT TO NOTHING AND THEIR ECONOMY IS GOING NOWHERE QUOTE U. S. AID TO NICARAGUA WILL BE HALVED THIS YEAR TO FIFTY TWO MILLION DOLLARS FROM ONE HUNDRED ONE MILLION DOLLARS IN NINETEEN NINETY THREE WHOLESALE SALES OF WESTERN GERMAN HOME TEXTILES FELL AN INFLATION ADJUSTED FOUR PERCENT IN THE ELEVEN MONTH SPAN FROM JANUARY THROUGH NOVEMBER COMPARED WITH THE SAME PERIOD IN NINETEEN NINETY TWO THE FEDERAL STATISTICS OFFICE WHICH RELEASED THE FIGURES IN A SPECIAL REPORT ON THE SECTOR DIDN'T GIVE A REPORT FOR ALL TWELVE MONTHS OF NINETEEN NINETY THREE HOME TEXTILES ARE ONE BRANCH WITHIN THE WESTERN GERMAN WHOLESALE SECTOR FROM NINETEEN EIGHTY SEVEN THROUGH NINETEEN NINETY ONE THE WESTERN GERMAN TEXTILE BRANCH POSTED A REAL GAIN OF SIX PERCENT THE AGENCY SAID IN NINETEEN NINETY TWO THE SAME BRANCH IN WESTERN GERMANY HAD A FIVE POINT SEVEN PERCENT REAL DROP IN WHOLESALE SALES EATON CORPORATION CLEVELAND SAID IT SOLD TWO POINT ONE MILLION COMMON SHARES IN A PRIVATE SALE RAISING NINETY NINE POINT NINE MILLION DOLLARS IN NET PROCEEDS EATON A MAKER OF VEHICLE POWERTRAIN COMPONENTS AND CONTROLS FOR INDUSTRIES INCLUDING TRANSPORTATION SAID IT IS USING THE MONEY TO REDEEM EIGHTY NINE POINT THREE MILLION DOLLARS OUTSTANDING OF EIGHT AND ONE HALF PERCENT DEBENTURES DUE JANUARY FIFTEENTH TWO THOUSAND SEVENTEEN CUTTING ITS INTEREST COST THE STOCK SALE ALSO IS PART OF THE COMPANY'S FINANCING FOR ITS PENDING ONE POINT ONE BILLION DOLLAR ACQUISITION OF WESTINGHOUSE ELECTRIC CORPORATION'S DISTRIBUTION AND CONTROLS UNIT EATON PLANS TO SELL AN ADDITIONAL TWO HUNDRED MILLION DOLLARS OF COMMON STOCK TO HELP FINANCE THE ACQUISITION WHICH THE COMPANY HOPES TO CLOSE BY MID FEBRUARY AT DECEMBER THIRTY FIRST EATON HAD SEVENTY ONE POINT THREE MILLION COMMON SHARES OUTSTANDING D. S. C. COMMUNICATIONS CORPORATION CALLED FOR REDEMPTION ALL ITS THIRTY SIX POINT FOUR MILLION DOLLARS IN OUTSTANDING EIGHT PERCENT CONVERTIBLE SUBORDINATED DEBENTURES DUE TWO THOUSAND THREE THE TELECOMMUNICATION PRODUCT MAKER SAID THE REDEMPTION PRICE FOR EACH DEBENTURE IS ONE THOUSAND DOLLAR PRINCIPAL AMOUNT PLUS ACCRUED INTEREST OF TWENTY DOLLARS FROM NOVEMBER FIFTEENTH TO THE FEBRUARY FIFTEENTH REDEMPTION DATE ALTERNATIVELY DEBENTURE HOLDERS CAN UP TO THE CLOSE OF BUSINESS FEBRUARY FOURTEENTH CONVERT THE DEBENTURES INTO SHARES OF D. S. C.'S COMMON STOCK AT THE RATE OF FIFTY FOUR DOLLARS AND FIFTY CENTS A SHARE OR EIGHTEEN POINT THREE FIVE SHARES OF COMMON STOCK FOR EACH ONE THOUSAND DOLLAR PRINCIPAL AMOUNT OF DEBENTURES ACCRUED INTEREST FROM NOVEMBER FIFTEENTH TO THE DATE OF CONVERSION WON'T BE PAID ON CONVERTED DEBENTURES THE COMPANY SAID THE THIRTY SIX POINT FOUR MILLION DOLLARS OF OUTSTANDING DEBENTURES WOULD CONVERT INTO APPROXIMATELY SIX HUNDRED SIXTY EIGHT THOUSAND ONE HUNDRED EIGHTY THREE COMMON SHARES OF D. S. C. IF ALL HOLDERS ELECT TO CONVERT UNITED KINGDOM PUBLISHER PEARSON P. L. C. SAID THE UNDERWRITERS OF ITS RECENT FLOTATION OF FIFTY FIVE PERCENT OF CAMCO INTERNATIONAL ITS OIL SERVICES UNIT HAVE EXERCISED THEIR OPTION TO BUY THREE POINT SIX PERCENT OF CAMCO'S ISSUED SHARE CAPITAL PEARSON SAID IT WILL RECEIVE ANOTHER EIGHT POINT FIVE MILLION POUNDS TWELVE POINT SEVEN MILLION DOLLARS THROUGH THE UNDERWRITERS' PURCHASE IN NOVEMBER PEARSON ANNOUNCED IT WOULD SELL FIFTY FIVE PERCENT OF CAMCO AS A FIRST STEP IN SELLING ALL OF THE COMPANY IT RECEIVED FIFTEEN DOLLARS A SHARE CAMCO IS TRADED ON THE NEW YORK STOCK EXCHANGE PEARSON OWNS FORTY ONE POINT FOUR PERCENT OF CAMCO THE IMPENDING FEDERAL BUDGET DEBATE WILL TEST WASHINGTON'S TRUE GRASP OF THE WORLD ECONOMY THE CHALLENGE FOR PRESIDENT CLINTON AND CONGRESS IS TO FIGURE OUT HOW TO USE FISCAL POLICY TO PROMOTE NATIONAL GROWTH IN A GLOBAL ECONOMY IT WON'T BE EASY BECAUSE WASHINGTON DEBATES OVER THE BUDGET ARE USUALLY DISENGAGED FROM THE ECONOMICS OF GROWTH BOTH POLITICAL PARTIES HAVE BEEN CONSUMED WITH QUESTIONS OF WHO WILL PAY MORE TAXES AND WHO LESS AND WHO SHOULD GAIN NEW BENEFITS AND WHO SHOULD RECEIVE LESS THESE OPPOSING VERSIONS OF A PRIMITIVE TAX AND SPEND PARADIGM INFORM MOST ECONOMIC THINKING IN POLITICAL CIRCLES LIBERALS SIMPLY FOCUS ON INCREASING SPENDING AND WHEN NECESSARY TAXES TOO CONSERVATIVES CONCENTRATE ONLY ON CUTTING TAX RATES AND WHEN POSSIBLE SPENDING AS WELL FOR THE NEW BUDGET TO BE A GENUINE INSTRUMENT OF GROWTH POLICY IT SHOULD BE REORGANIZED AROUND A NEW STRATEGY BASED ON THE REAL TERMS OF COMPETITION IN THE GLOBAL ECONOMY THIS STRATEGY WHICH I CALL QUOTE CUT AND INVEST QUOTE PROPOSES THAT GOVERNMENT USE THE BUDGET BOTH TO PROMOTE HIGHER LEVELS OF PUBLIC AND PRIVATE INVESTMENT AND TO ACTIVELY ENCOURAGE VIGOROUS MARKET COMPETITION TO DRIVE PRIVATE SECTOR INNOVATION AND PRODUCTIVITY THE STRATEGY RELIES FIRST ON CUTTING FEDERAL SPENDING AND TAX SUBSIDIES THAT INSULATE CERTAIN INDUSTRIES FROM COMPETITION BUT IT ALSO REQUIRES US TO DEFINE WHAT TRULY ARE PUBLIC INVESTMENTS AND THEN TO DIRECT PUBLIC RESOURCES TOWARD THEM IN EFFECT CUT AND INVEST IS A WAY FOR THE PROPONENTS OF INVESTMENT AND THE PROPONENTS OF DEFICIT REDUCTION TO PUT THEIR MONEY WHERE THEIR MOUTH IS AND IMPROVE AMERICA'S COMPETITIVENESS THE NEW BUDGET ALSO SHOULD RECOGNIZE AS ADAM SMITH DID THAT IN CERTAIN AREAS OF EDUCATION AND TRAINING BASIC RESEARCH AND ECONOMIC INFRASTRUCTURE MARKETS NORMALLY GENERATE LESS INVESTMENT THAN THE ECONOMY COULD PROFITABLY USE GENUINE PUBLIC INVESTMENT IS DIFFERENT FROM OTHER SPENDING IT IS CALLED FOR ONLY IN THOSE SPECIFIC AREAS WHERE MARKETS INVARIABLY FAIL TO GENERATE APPROPRIATE LEVELS OF PRIVATE INVESTMENT AND ITS ONLY PURPOSE IS TO EXPAND THE PRIVATE ECONOMY'S CAPACITY TO CREATE WEALTH A PRO GROWTH BUDGET ALSO MUST ACTIVELY STRENGTHEN DOMESTIC COMPETITION BECAUSE ONLY COMPETITIVE PRESSURES WILL DRIVE FIRMS AND WORKERS TO MAKE THE MOST OF PRIVATE AND PUBLIC INVESTMENT THE TASK FACING BUSINESSES IN THE GLOBAL ECONOMY INVOLVES ORGANIZING PRODUCTIVE FACTORS FROM AROUND THE WORLD RESEARCH AND DEVELOPMENT MATERIALS LABOR PRODUCT AND PROCESS DESIGN FINANCING MARKETING PACKAGING AND DISTRIBUTION TO PRODUCE THE GOODS AND SERVICES DEMANDED BY MARKET SEGMENTS AROUND THE WORLD GLOBAL COMPETITION IN SHORT REQUIRES THAT FIRMS LEARN TO INNOVATE EFFICIENTLY IN EVERY ASPECT OF PRODUCTION TO THIS END THE NEW BUDGET SHOULD PHASE OUT MANY TENS OF BILLIONS OF DOLLARS OF SPECIFIC SPENDING AND TAX SUBSIDIES THAT INSULATE PARTICULAR AMERICAN INDUSTRIES FROM HEALTHY MARKET PRESSURES TRADE PROTECTIONS AND CERTAIN KINDS OF ECONOMIC REGULATION HAVE A SIMILAR EFFECT ON AN INDUSTRY'S INCENTIVES TO INNOVATE AND BECOME MORE EFFICIENT THESE DOMESTIC SUBSIDIES COST THE U. S. JOBS BUSINESS FORMATION AND OVERALL GROWTH NOT ONLY DO THEY REDUCE NORMAL COMPETITIVE PRESSURES TO INNOVATE FOR FOREIGN COMPETITION BUT THEY ALSO PLACE INDUSTRIES NOT RECEIVING FAVORED TREATMENT AT A DISADVANTAGE BY EFFECTIVELY RAISING THEIR COSTS OF CAPITAL AND LABOR RELATIVE TO SUBSIDIZED SECTORS THE RESULT INDUSTRIES RECEIVING SUBSIDIES BECOME LESS COMPETITIVE AND THOSE DENIED THEM HAVE INCENTIVES TO TAKE ADVANTAGE OF GLOBALIZATION AND MOVE SOME OF THEIR OPERATIONS ABROAD WHERE LABOR COSTS ARE LOWER OR SPECIAL SUBSIDIES ARE AVAILABLE GROWTH POLICY DOES NOT DICTATE AS ORTHODOX CONSERVATIVES OFTEN SUGGEST THAT THE NEW BUDGET SHOULD END EVERY INSTANCE OF SPECIAL SECTOR SPENDING AND TAX TREATMENT IN SOME CASES THERE ARE LEGITIMATE SOCIAL PURPOSES SUCH AS HEALTH CARE SPENDING FOR THE POOR OR INCENTIVES FOR MIDDLE CLASS HOME OWNERSHIP IN ADDITION SOME SUBSIDIES OFFSET GENUINE MARKET FAILURES SUCH AS SPENDING TO PROTECT BANK DEPOSITORS AND TAX INCENTIVES FOR R. AND D. GLOBAL MARKETS REQUIRE THAT THE PRESIDENT AND CONGRESS CUT THOSE PROGRAMS AND TAX PROVISIONS THAT ARTIFICIALLY RAISE THE RATE OF RETURN FOR PARTICULAR INDUSTRIES FOR NO OVERRIDING SOCIAL OR ECONOMIC PURPOSE BUT AS BOTH RONALD REAGAN AND BILL CLINTON QUICKLY DISCOVERED SPECIAL INTERESTS USUALLY CAN BLOCK SERIOUS CONGRESSIONAL ACTION TO PHASE OUT THEIR SUBSIDIES A NEW WAY HAS TO BE FOUND TO UNRAVEL THIS WEB OF POLITICAL INFLUENCE CONGRESS AND THE PRESIDENT SHOULD CREATE A COMMISSION ON NATIONAL COMPETITIVENESS AND INDUSTRY SUBSIDIES MODELED ON THE BASE CLOSING COMMISSION THIS INDEPENDENT BODY WOULD IDENTIFY AND EVALUATE SPENDING PROGRAMS AND TAX PROVISIONS THAT PROVIDE ANTICOMPETITIVE TRANSFERS TO PARTICULAR INDUSTRIES AND RECOMMEND TO THE PRESIDENT AN ANNUAL PACKAGE OF REFORMS THE PRESIDENT WOULD SUBMIT THE PACKAGE TO CONGRESS WHICH WOULD HAVE TO VOTE ON THE PACKAGE WITHOUT AMENDMENT THIS COMMISSION COULD START WITH THE SIXTY EIGHT SPECIFIC SPENDING AND TAX SUBSIDIES LISTED IN THE ACCOMPANYING TABLE TOTALING TWO HUNDRED TWENTY FIVE BILLION DOLLARS OVER FIVE YEARS THESE SAVINGS PLAINLY COULD FINANCE SUBSTANTIAL NEW PUBLIC INVESTMENT AND AN ADDED MEASURE OF DEFICIT REDUCTION AS WELL AS PRESSING SOCIAL REFORMS IN WELFARE AND LAW ENFORCEMENT IN EVERY WAY A CUT AND INVEST STRATEGY WOULD LEAVE THE U. S. MORE PRODUCTIVE AND COMPETITIVE IN THE WORLD ECONOMY MR. SHAPIRO IS VICE PRESIDENT OF THE PROGRESSIVE POLICY INSTITUTE A THINK TANK AFFILIATED WITH THE DEMOCRATIC LEADERSHIP COUNCIL AND WAS A PRINCIPAL ECONOMIC ADVISER TO PRESIDENT CLINTON IN THE NINETEEN NINETY TWO CAMPAIGN THIS ARTICLE IS ADAPTED FROM A REPORT BEING ISSUED THIS WEEK BY P. P. I. THE NEW YEAR'S RALLY IN STOCKS HAS A DARK SIDE THE VALUATION PICTURE IS GETTING UGLIER AND UGLIER ANALYSTS IN A BEARISH MOOD ARE ESPECIALLY FOND OF CITING ONE OF THE POPULAR VALUATION MEASURES THE STOCK MARKET'S DIVIDEND YIELD OR THE AMOUNT OF MONEY PAID AS DIVIDENDS AS A PERCENTAGE OF SHARE PRICES THAT MEASURE CALCULATED ON THE PAST YEAR'S DIVIDENDS HAS BEEN IN WHAT MANY TECHNICAL ANALYSTS CONSIDER THE DANGER ZONE FOR TWO YEARS BUT AS STOCK PRICES MOVE EVER HIGHER THE ALARM IS RINGING LOUDER QUOTE THE MARKET AT THESE LEVELS RESEMBLES MORE OF A GAMBLING CASINO THAN AN INVESTMENT ARENA QUOTE SAYS GERALDINE WEISS EDITOR OF INVESTMENT QUALITY TRENDS A LA JOLLA CALIFORNIA NEWSLETTER AT FRIDAY'S RECORD CLOSE OF THREE THOUSAND EIGHT HUNDRED SIXTY SEVEN POINT TWO OH FOR THE DOW JONES INDUSTRIAL AVERAGE THE DIVIDEND YIELD ON THAT INDEX OF THIRTY BLUE CHIP STOCKS FELL TO TWO POINT SIX TWO PERCENT FROM AN ALREADY MEAGER TWO POINT SEVEN PERCENT AT THE START OF THE NEW YEAR AND FAR BELOW THE AVERAGE FOUR POINT FOUR PERCENT OF THE PAST FEW DECADES MANY ANALYSTS BELIEVE THAT WHEN THE INDUSTRIAL AVERAGE OR STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX IS YIELDING LESS THAN THREE PERCENT STOCKS ARE DANGEROUSLY PRICEY EVENTUALLY THEY ARGUE YIELDS WILL RISE TO THE LONG TERM AVERAGE EITHER THROUGH FALLING PRICES OR RISING DIVIDENDS ALTHOUGH THE DIVIDEND YIELD HAS BEEN FLASHING DANGER SIGNALS FOR MORE THAN TWO YEARS SOME STRATEGISTS ARE PAYING MORE ATTENTION TO IT TODAY BECAUSE THE ENVIRONMENT INVESTORS ARE FACING IS DIFFERENT FOR STARTERS THE BULL MARKET IS ALREADY FORTY MONTHS OLD AND WAY PAST RETIREMENT AGE WHAT'S MORE INTEREST RATES WHICH WERE FALLING FAST AND FURIOUSLY FOR THE PAST TWO YEARS APPEAR TO BE BOTTOMING THEY'RE MORE LIKELY TO RISE THAN DROP IN THE COMING MONTHS THOUGH LOW INTEREST RATES HAVE MANAGED TO PROLONG THE BULL MARKET STRATEGISTS SAY IT'S ONLY LOGICAL THAT WHEN INTEREST RATES BEGIN TO TICK UP INVESTORS WILL START FOCUSING AGAIN ON TRADITIONAL VALUATION MEASURES AND WHEN THEY DO THEY MAY BE IN FOR A RUDE AWAKENING MS. WEISS SAYS THAT WHILE SHE EXPECTS DIVIDENDS TO RISE AT A VIGOROUS SIX PERCENT PACE THIS YEAR EVEN THAT WON'T BE ENOUGH TO SUPPORT TODAY'S LOFTY STOCK PRICES ARNOLD KAUFMAN EDITOR OF STANDARD AND POOR'S OUTLOOK NEWSLETTER ADDS THAT EVEN IF STOCK PRICES MADE NO FURTHER GAINS AND DIVIDENDS GREW TEN PERCENT THE DIVIDEND YIELD ON STOCKS WOULD RISE TO ONLY TWO POINT NINE FOUR PERCENT BY THE END OF NINETEEN NINETY FOUR IT'S EXTREMELY WORRISOME HE SAYS IF THE S. AND P. FIVE HUNDRED MOVES UP ANOTHER FIVE TO SEVEN POINTS WE WILL BE AT THE LOWEST DIVIDEND YIELD IN MODERN HISTORY TO BE SURE STOCK MARKET BULLS DON'T DISMISS THE DIVIDEND YIELD AS A VALUATION TOOL BUT THEY CONTEND THAT IT HAS TO BE LOOKED AT IN THE CONTEXT OF INTEREST RATES IT'S NOT THE ABSOLUTE LEVEL OF THREE PERCENT THAT IS KEY SAYS ELAINE GARZARELLI STOCK STRATEGIST AT LEHMAN BROTHERS IT'S THE RELATIONSHIP OF THE DIVIDEND YIELD ON STOCKS WITH OTHER INVESTMENT ALTERNATIVES THAT IS IMPORTANT MS. GARZARELLI SAYS HER STUDIES HAVE SHOWN THAT THE DIVIDEND YIELD HAS HISTORICALLY RUN AT FORTY THREE PERCENT OF THE AVERAGE OF THE TREASURY'S THREE MONTH BILL RATE AND THE THIRTY YEAR BOND YIELD AS LONG AS HER OTHER STOCK MARKET INDICATORS ARE FLASHING BULLISH SIGNALS THAT WOULD SUGGEST THE DIVIDEND YIELD ON STOCKS COULD GO AS LOW AS TWO PERCENT BEFORE IT'S COMPARABLE TO PAST BULL MARKET PEAKS SHE SAYS WHAT'S MORE CORRECTIONS GENERALLY DON'T OCCUR WHEN THE SPREAD BETWEEN THE DIVIDEND YIELD ON STOCKS AND THE TREASURY'S THREE MONTH BILL RATE IS AS SMALL AS IT IS NOW MS. GARZARELLI SAYS THAT THE SPREAD BETWEEN THE TWO BAROMETERS WOULD HAVE TO WIDEN TO ONE HUNDRED BASIS POINTS BEFORE SHE STARTED CALLING FOR A TEN PERCENT TO FIFTEEN PERCENT CORRECTION IN STOCK PRICES RIGHT NOW THE GAP BETWEEN THE TWO IS FORTY BASIS POINTS OTHER ANALYSTS SUCH AS LASZLO BIRINYI WHO HEADS A CONSULTING FIRM THAT BEARS HIS NAME SAY SENTIMENT WILL BE MORE CRITICAL TO THE DEMISE OF THE BULL MARKET THAN THE DIVIDEND YIELD WHEN EVERYBODY SAYS THE THREE PERCENT DIVIDEND YIELD DOESN'T MATTER ANYMORE THAT WILL SET MY ALARM OFF SAYS MR. BIRINYI HE ARGUES THAT THERE ARE TOO MANY INVESTORS FRETTING ABOUT VALUATION TOOLS LIKE DIVIDEND YIELD AND PRICE EARNINGS FOR THERE TO BE A SIGNIFICANT CORRECTION IN THE MARKET TODAY NONE OF THIS IS TO SAY THAT ALL STOCKS ARE EXPENSIVE GEORGE SHIRK RESEARCH ANALYST AT THE FORT LAUDERDALE FLORIDA BASED INSTITUTE FOR ECONOMETRIC RESEARCH IS BEARISH ON THE OVERALL STOCK MARKET BUT NEVERTHELESS FINDS POCKETS OF CHEAP STOCKS ONE FAVORITE SHOPPING AREA IS BANK STOCKS MR. SHIRK NOTES THAT THE AVERAGE BANK STOCK SPORTS A DIVIDEND YIELD OF AROUND THREE PERCENT THE KEY HE SAYS IS TO SNAP UP BANK ISSUES ON SMALL PRICE RETREATS THAT BOOST THEIR DIVIDEND YIELDS HOPEFULLY TEMPORARILY MR. SHIRK FINDS AN ATTRACTIVE INVESTMENT OPPORTUNITY IN STORAGE EQUITIES A REAL ESTATE INVESTMENT TRUST THAT BUYS MINISTORAGE WAREHOUSES THE STOCK WHICH GAINED ONE EIGHTH ON FRIDAY TO FOURTEEN AND FIVE EIGHTHS HAS A GENEROUS YIELD OF FIVE POINT SEVEN PERCENT QUOTE THIS PAYS A YIELD SIMILAR TO LONG TERM BONDS QUOTE SAYS MR. SHIRK BUT IT'S NOT GOING TO BE INTEREST RATE SENSITIVE BECAUSE THE COMPANY HAS PAID DOWN A LOT OF DEBT OVER THE PAST YEAR THE DOW JONES INDUSTRIAL AVERAGE CLIMBED TO ITS SEVENTH RECORD OF THE YEAR AMID POSITIVE ECONOMIC NEWS THE AVERAGE JUMPED TWENTY FOUR POINT SEVEN SEVEN TO THREE THOUSAND EIGHT HUNDRED SIXTY SEVEN POINT TWO OH BREAKING THE PREVIOUS HIGH OF THREE THOUSAND EIGHT HUNDRED SIXTY FIVE POINT FIVE ONE SET MONDAY STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX ROSE TWO POINT FOUR FOUR TO FOUR HUNDRED SEVENTY FOUR POINT NINE ONE AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED ONE POINT ONE SEVEN TO TWO HUNDRED SIXTY TWO POINT NINE OH THE NASDAQ COMPOSITE SURGED FOUR POINT FIVE OH TO SEVEN HUNDRED NINETY TWO POINT THREE ONE ITS SECOND STRAIGHT RECORD THE DOW JONES TRANSPORTATION AVERAGE ALSO HIT A RECORD GAINING TEN POINT SEVEN THREE POINTS TO ONE THOUSAND EIGHT HUNDRED THIRTY FOUR POINT EIGHT ONE VOLUME ON THE BIG BOARD CLIMBED TO THREE HUNDRED FIVE MILLION SHARES FROM TWO HUNDRED SEVENTY SEVEN POINT NINE MILLION THURSDAY RISING ISSUES OUTNUMBERED DECLINERS ONE THOUSAND TWO HUNDRED FORTY FIVE TO EIGHT HUNDRED SEVENTY ONE FOR THE WEEK THE INDUSTRIAL AVERAGE ROSE FORTY SIX POINT FOUR THREE POINTS OR ONE POINT TWO OH PERCENT THE N. Y. S. E. COMPOSITE GAINED TWO POINT FIVE SIX POINTS OR ZERO POINT NINE EIGHT PERCENT AND THE S. AND P. FIVE HUNDRED ADDED FIVE POINT OH ONE OR ONE POINT OH SEVEN PERCENT WORLD WIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED ONE POINT FOUR TWO TO ONE HUNDRED THIRTEEN POINT TWO FOUR STOCK MARKET INVESTORS WERE ENCOURAGED BY A RISE IN DECEMBER INDUSTRIAL PRODUCTION AND A JUMP IN THE UNIVERSITY OF MICHIGAN CONSUMER CONFIDENCE INDEX BUT BONDS SUFFERED WITH THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE SINKING ONE HALF POINT ITS YIELD ROSE TO SIX POINT TWO NINE PERCENT THE BOND MARKET WILL BE CLOSED TODAY IN OBSERVANCE OF DOCTOR MARTIN LUTHER KING JUNIOR'S BIRTHDAY AUTODESK LEAPED TWO AND ONE QUARTER TO FORTY FOUR AND THREE QUARTERS AND CISCO SYSTEMS JUMPED ONE AND THREE QUARTERS TO SIXTY NINE IN NASDAQ TRADING HEWLETT PACKARD ROSE TWO TO EIGHTY SEVEN AND ONE HALF ON THE BIG BOARD INVESTORS SOUGHT OUT TECHNOLOGY STOCKS AFTER MOTOROLA REPORTED STRONG FOURTH QUARTER EARNINGS LATE THURSDAY MOTOROLA GAINED ONE TO NINETY NINE FRIDAY THE COMPANY SAID ITS NET INCOME ROSE TO ONE DOLLAR AND FIFTEEN CENTS A SHARE FOR THE QUARTER FROM SIXTY FOUR CENTS A YEAR EARLIER KIDDER PEABODY AND GRUNTAL BOOSTED THEIR RATINGS ON THE STOCK SEMICONDUCTOR STOCKS ROSE TOO TEXAS INSTRUMENTS JUMPED THREE TO SEVENTY TWO AND ONE HALF AND MICRON TECHNOLOGY CLIMBED TWO AND THREE EIGHTHS TO FIFTY FIVE AND ONE QUARTER INTEL ROSE ONE HALF TO SIXTY EIGHT AND ONE HALF IN NASDAQ TRADING ORACLE ADDED SEVEN EIGHTHS TO THIRTY THREE AND ONE EIGHTH TOPPING THE NASDAQ MOST ACTIVE LIST FOR THE SECOND STRAIGHT DAY ON VOLUME OF FOUR POINT SIX MILLION SHARES COMPARED WITH AVERAGE DAILY TURNOVER OF THREE POINT THREE MILLION ORACLE AND WASHINGTON POST COMPANY SAID THEY EXECUTED A LETTER OF INTENT TO JOINTLY DEVELOP AND MARKET MULTIMEDIA SOFTWARE AND SERVICES FOR ELECTRONIC PUBLISHING TERMS WEREN'T DISCLOSED WASHINGTON POST DROPPED ONE AND SEVEN EIGHTHS TO TWO HUNDRED SIXTY SEVEN WELLFLEET COMMUNICATIONS SURGED TWO AND THREE EIGHTHS TO SEVENTY AND ONE EIGHTH IN NASDAQ TRADING ON STRONG SECOND QUARTER EARNINGS THE COMPANY'S NET INCOME WAS FORTY THREE CENTS A SHARE ABOVE THE NINETEEN CENTS REPORTED LAST YEAR AND ANALYSTS' ESTIMATES OF THIRTY NINE CENTS SWEDEN'S L. M. ERICSSON TELEPHONE INCREASED THREE AND THREE EIGHTHS TO FORTY FIVE AND ONE HALF THE COMPANY'S ERICSSON NETWORK SYSTEMS SUBSIDIARY SAID IT FORMED A JOINT TEAM WITH RELIANCE COMM SLASH TEC TO DEFINE DEVELOP AND IMPLEMENT VIDEO ON DEMAND FIELD TRIALS FOR THE U. S. MARKET RELIANCE COMM SLASH TEC IS A UNIT OF RELIANCE ELECTRIC WHICH GAINED FIVE EIGHTHS TO NINETEEN AND SEVEN EIGHTHS XILINX SHOT UP ONE AND ONE HALF TO FORTY NINE AND THREE QUARTERS ON NASDAQ WERTHEIM SCHRODER RAISED ITS RATING ON THE STOCK TO OUTPERFORM FROM NEUTRAL CITING THURSDAY'S RELEASE OF STRONG THIRD QUARTER EARNINGS XILINX SAID NET INCOME JUMPED TO FORTY FOUR CENTS A SHARE FROM THIRTY CENTS LAST YEAR AND EXCEEDED ANALYSTS' ESTIMATES OF FORTY TWO CENTS THE GOOD TIMES IN SMALL STOCKS JUST KEEP ON ROLLING SMALL CAPITALIZATION STOCKS AS MEASURED BY THE RUSSELL TWO THOUSAND INDEX PUSHED INTO RECORD TERRITORY LAST WEEK LED BY ROBUST SHOWINGS FROM SEMICONDUCTOR SHARES AND OTHER TECHNOLOGY ISSUES FOLLOWING THIS YEAR'S STRONG START AND NINETEEN NINETY THREE'S IMPRESSIVE SEVENTEEN PERCENT GAIN IN THE RUSSELL TWO THOUSAND ANALYSTS ARE INCREASINGLY CONVINCED THAT THE SMALL STOCK RALLY THAT BEGAN IN EARNEST IN NOVEMBER NINETEEN NINETY HAS LONG LEGS FRIDAY THE RUSSELL TWO THOUSAND INDEX GAINED ZERO POINT SIX THREE POINT TO TWO HUNDRED SIXTY ONE POINT TWO SEVEN FOR THE WEEK THE INDEX WAS UP TWO POINT OH NINE POINTS TYPICALLY SMALL STOCKS TEND TO FALL ON TAX RELATED SELLING LATE IN ONE YEAR AND THEN REBOUND IN JANUARY HENCE THE OFTCITED QUOTE JANUARY EFFECT QUOTE BUT MANY ANALYSTS ARE CONVINCED THAT THE MARKET'S CURRENT MOMENTUM REFLECTS MORE THAN JUST THE TRADITIONAL EARLY JANUARY BOUNCE IN SMALLCAP PERFORMANCE THE LONG TERM BULLISH CASE FOR SMALL CAPS IS STILL VERY SOLID SAYS DAVID BOSTIAN CHIEF ECONOMIST AND MARKET STRATEGIST AT BROKERS HERZOG HEINE GEDULD IN NEW YORK SMALL CAPS HAVE BEEN DOING MUCH BETTER RELATIVE TO THE S. AND P. FIVE HUNDRED SINCE LATE NINETEEN NINETY WITH A FEW PERIODS OF MINOR LAGGARD BEHAVIOR I THINK WE'LL SEE A LOT OF NEW MONEY GOING INTO THE SECTOR CONVENTIONAL WISDOM HOLDS THAT BULL MARKET CYCLES IN SMALL STOCKS LAST FIVE TO SEVEN YEARS HENCE THE CURRENT RALLY SHOULD BE SECURELY IN MID STRIDE BUT THAT'S SCANT COMFORT TO THOSE WORRIED ABOUT A SUDDEN ABOUT FACE IN WHAT IS OFTEN A VOLATILE MARKET SUCH WORRIES HAVE BEEN JUSTIFIED IN PREVIOUS CYCLES INDEED SMALL CAPS HISTORICALLY HAVE OUTSHONE THEIR BIGGER BRETHREN ONLY WHEN MID CAP AND LARGE CAP STOCKS WERE ON AN UPWARD TREND WHEN THE BIG GUYS HAVE STUMBLED SMALL CAP STOCKS WITH THEIR THINNER MARKETS TRADITIONALLY HAVE FALLEN HARDER AND FOR LONGER PERIODS OF TIME IF AND WHEN THE BROAD MARKET STUMBLES ANALYSTS SUCH AS MR. BOSTIAN ARE GOING TO KEEP A CLOSE EYE ON SMALL STOCKS FOR CLUES ABOUT HOW STRONG THE MARKET FOR THOSE ISSUES IS MY GUESS IS THAT WE'RE VERY CLOSE TO AN INTERMEDIATE CORRECTION IN THE BROADER MARKET HE SAYS ONE IMPORTANT CLUE TO THE CONTINUATION OF SMALL CAP LEADERSHIP WILL BE SUPERIOR PERFORMANCE BY THE RUSSELL TWO THOUSAND DURING THIS FORTHCOMING DECLINE HE'S LOOKING FOR SMALL CAP STOCKS TO RETREAT LESS THAN BIG ISSUES QUOTE THAT WOULD SHOW REAL MARKET STRENGTH QUOTE FOR THE LONG TERM HE SAYS THE RUSSELL TWO THOUSAND TRACKS THE PERFORMANCE OF SOME TWO THOUSAND SMALL CAP STOCKS WITH MARKET VALUATIONS BETWEEN ROUGHLY SIXTY MILLION DOLLARS AND FIVE HUNDRED NINETY MILLION DOLLARS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES SMALL STOCK VALUATIONS IN RELATION TO PROJECTED EARNINGS GROWTH ARE WELL BELOW HISTORIC HIGHS A KEY FACTOR IN A MARKET THAT HAS BEEN DRIVEN LARGELY BY EARNINGS MOMENTUM SMALL CAP MARKET LEADERS INCLUDING TECHNOLOGY BIOTECH AND SELECTIVE HEALTH CARE STOCKS SEEM SET TO POWER AHEAD AFTER A YEAR OF INTERMITTENT JITTERS WHILE SOME PROMISING BUT HIGHLY SPECULATIVE SECTORS LIKE WIRELESS COMMUNICATIONS WILL NEED TO PROVE THEY CAN DELIVER TECHNOLOGY STOCKS WHICH TOOK A BEATING IN NOVEMBER WHEN THE OVERALL RUSSELL TWO THOUSAND DROPPED THREE POINT FOUR PERCENT SEEM TO HAVE WEATHERED A LONG AWAITED CORRECTION WHILE BEATEN UP HEALTH STOCKS APPEAR TO BE MAKING A COMEBACK ON A GROWING SENSE THAT A HEALTH CARE REFORM PACKAGE IS STILL A LONG WAY OFF AND SAY SOME THE MILD CORRECTION IN THE HOT TECHNOLOGY SECTOR WAS JUST WHAT THE MARKET NEEDED IF A SHORT SHARP CORRECTION IS ENOUGH TO BLOW THE FLUFF OUT OF THE MARKET I'D RATHER HAVE THAT THAN A LONG DRAWN OUT ONE SAYS CLAUDIA MOTT DIRECTOR OF SMALLCAP RESEARCH AT PRUDENTIAL SECURITIES IN NEW YORK OVERALL MS. MOTT THINKS SMALL STOCKS ARE RELATIVELY CHEAP AND ARE GOING TO CONTINUE TO OUTPERFORM THE MARKET SPECIFICALLY SHE NOTES THAT SMALL CAP STOCKS ARE TRADING AT A LOWER PRICE EARNINGS MULTIPLE IN RELATION TO ESTIMATED LONG TERM EARNINGS GROWTH RATES THAN LARGE CAP COMPANIES VALUATIONS ARE STILL VERY ATTRACTIVE BUT I DON'T THINK VALUATIONS ALONE CAN CARRY THIS CYCLE MS. MOTT SAYS FUNDAMENTALS SHOULD ALSO PROVE SUPPORTIVE THIS YEAR SHE ADDS IN TERMS OF FIRST HALF EARNINGS REPORTS PEOPLE WILL BE LOOKING FOR GOOD FIRST AND SECOND QUARTERS BECAUSE WE HAD SUCH A STRONG ECONOMY IN THE FOURTH QUARTER WHAT'S MORE WE HAVEN'T GOTTEN ANY DAMAGING INTEREST RATE NEWS PER SHARE EARNINGS OF THE RUSSELL TWO THOUSAND COMPANIES ARE EXPECTED TO GROW TWENTY THREE PERCENT THIS YEAR WELL ABOVE THE SIXTEEN PERCENT PROJECTED GROWTH FOR BIG CAP COMPANIES ACCORDING TO ESTIMATES BY FRANK RUSSELL COMPANY OF TACOMA WASHINGTON BUT ANY FAILURE TO MEET EARNINGS EXPECTATIONS WILL RESULT IN DRUBBINGS OF INDIVIDUAL STOCKS AS HAS BEEN THE CASE IN RECENT WEEKS MS. MOTT AND OTHERS EMPHASIZE JEFFREY APPLEGATE CHIEF INVESTMENT STRATEGIST FOR C. S. FIRST BOSTON IS LOOKING FOR THE WIDENED MARGIN BETWEEN CAPITAL GAINS TAXES AND ORDINARY INCOME TAXES TO GIVE SMALL STOCKS A POWERFUL BOOST THIS YEAR CERTAINLY THAT'S BEEN THE CASE IN THE PAST WHEN ORDINARY INCOME HAS BEEN TAXED MORE HEAVILY THAN CAPITAL GAINS AND MR. APPLEGATE SUGGESTS THAT TAX POLICY MAY BE A MORE POTENT INFLUENCE ON THE PERFORMANCE OF SMALL STOCKS THAN ANY OTHER SINGLE FACTOR SMALL CAPS ONLY BEGAN OUTPERFORMING IN LATE NINETEEN NINETY HE SAYS AND THAT'S BECAUSE THE CAPITAL GAINS TAX RATE WAS RISING UNTIL NINETEEN NINETY STILL MR. BOSTIAN THE HERZOG HEINE GEDULD ECONOMIST SAYS GOVERNMENT POLICY MIGHT BE A MIXED BAG IN THE END FOR SMALL CAP STOCKS THIS YEAR QUOTE THE QUESTION IS WHETHER BENEFITS TO SMALL CAP INVESTORS FROM CAPITAL GAINS WILL MORE THAN OFFSET THE POTENTIAL DAMAGE TO THE EARNINGS OF SMALL CAP COMPANIES THAT WILL RESULT FROM THE HEALTH CARE REFORMS QUOTE HE SAYS NOBODY KNOWS EXACTLY HOW SUCCESSFUL THE ADMINISTRATION WILL BE IN GETTING ITS HEALTH CARE COST CUTTING MANDATES THROUGH CONGRESS PROPELLED BY THE OUTLOOK FOR HEALTHY FOURTH QUARTER EARNINGS SMALL COMPANY STOCKS CONTINUED TO RALLY WITH KEY INDEXES AGAIN CLOSING AT RECORD LEVELS THE RUSSELL TWO THOUSAND INDEX OF SMALL CAP STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES ROSE ZERO POINT SIX THREE OR ZERO POINT TWO PERCENT TO TWO HUNDRED SIXTY ONE POINT TWO SEVEN ITS THIRD STRAIGHT RECORD CLOSE THE NASDAQ COMPOSITE INDEX WAS UP FOUR POINT FIVE OH OR ZERO POINT SIX PERCENT AT SEVEN HUNDRED NINETY TWO POINT THREE ONE ITS SECOND CONSECUTIVE RECORD CLOSE ON NASDAQ GAINERS FINISHED AHEAD OF DECLINERS ONE THOUSAND SEVEN HUNDRED TWENTY THREE TO ONE THOUSAND THREE HUNDRED SIXTY FIVE TOTAL NASDAQ VOLUME WAS TWO HUNDRED NINETY EIGHT MILLION SHARES COMPARED WITH TWO HUNDRED NINETY MILLION ON THURSDAY WHILE NATIONAL MARKET VOLUME WAS TWO HUNDRED FIFTY EIGHT MILLION SHARES COMPARED WITH TWO HUNDRED FORTY SEVEN MILLION AMONG THE MOST ACTIVE OF THE TOP SMALL COMPANY GAINERS WAS SKOLNIKS WHICH WAS UP ONE AND ONE EIGHTH OR EIGHT POINT EIGHT PERCENT TO THIRTEEN AND SEVEN EIGHTHS ON NEWS THAT THE COMPANY REACHED AGREEMENTS WITH TWO DISTRIBUTORS THAT MORE THAN DOUBLE THE NUMBER OF SUPERMARKETS AND CONVENIENCE STORES TO WHICH ITS BAGELS WILL BE DELIVERED THE COMPANY SAID TWO THOUSAND FOUR HUNDRED LOCATIONS ARE BEING ADDED THROUGH AN AGREEMENT WITH WAL MART'S MCLANE DISTRIBUTION DIVISION AND ONE THOUSAND TWO HUNDRED MORE LOCATIONS THROUGH CORE MARK INTERNATIONAL A CLOSELY HELD DISTRIBUTOR BASED IN SAN FRANCISCO PRECISION SYSTEMS WAS ONE OF THE BIGGEST SMALL CAP LOSERS OF THE DAY DROPPING ONE QUARTER OR SIX POINT TWO PERCENT TO THREE AND THREE QUARTERS THE DECLINE CAME AFTER THE COMPANY REPORTED A LOSS OF FORTY ONE CENTS A SHARE FOR ITS FIRST QUARTER ENDED NOVEMBER THIRTIETH COMPARED WITH THE YEAR EARLIER NET OF THREE CENTS A SHARE NATIONAL MEDIA ROSE TWO OR TWENTY FOUR PERCENT TO TEN AND ONE QUARTER AFTER IT CONFIRMED THAT IT RECEIVED A TEN DOLLAR A SHARE PROPOSAL FROM VALUEVISION INTERNATIONAL FOR STOCK THAT WOULD GIVE VALUEVISION A FIFTY POINT ONE PERCENT STAKE IN THE COMPANY BALTIMORE BANCORP ROSE ONE AND THREE QUARTERS OR ELEVEN PERCENT TO SEVENTEEN AND THREE EIGHTHS AFTER THE COMPANY CONFIRMED IT IS IN TALKS WITH SEVERAL BANK HOLDING COMPANIES REGARDING THE POSSIBLE SALE OF THE COMPANY THE GAIN FOLLOWED THURSDAY'S TWELVE PERCENT INCREASE LARRY BAUMAN CONTRIBUTED TO THIS ARTICLE WAL MART STORES INCORPORATED EVER ON THE PROWL FOR GROWTH ENTERED THE CANADIAN MARKET BY AGREEING TO ACQUIRE ABOUT ONE HUNDRED TWENTY WOOLCO STORES IN THAT COUNTRY FROM WOOLWORTH CORPORATION'S CANADIAN SUBSIDIARY TERMS WEREN'T DISCLOSED ALTHOUGH WOOLWORTH SAID IT EXPECTS THE SALE TO GENERATE ABOUT THREE HUNDRED MILLION DOLLARS IN CASH ANALYSTS GREETED THE MOVE AS GOOD NEWS FOR BOTH COMPANIES SAYING IT GIVES WAL MART MORE THAN FOURTEEN MILLION SQUARE FEET OF RETAIL SPACE IN AN IMPORTANT NEW MARKET AND ACCELERATES NEW YORK BASED WOOLWORTH'S PLAN TO FLEE MASS MARKET RETAILING FOR THE RELATIVELY MORE PROFITABLE AREA OF SPECIALTY RETAILING IN CANADA THE NEWS IGNITED FEARS OF A PRICE WAR IN AN INDUSTRY ALREADY BATTERED BY THE WEAK ECONOMY INVESTORS RAVAGED THE STOCKS OF CANADIAN RETAILERS THAT WILL COMPETE DIRECTLY WITH WAL MART THE LARGEST RETAILER IN THE U. S. HUDSON'S BAY COMPANY WHICH OWNS CANADA'S BIGGEST DISCOUNT STORE CHAIN ZELLERS LOST FOUR POINT EIGHT SEVEN FIVE CANADIAN DOLLARS THREE U. S. DOLLARS AND SIXTY NINE CENTS OR TWELVE PERCENT TO THIRTY FIVE CANADIAN DOLLARS ON THE TORONTO STOCK EXCHANGE ON FRIDAY CANADIAN TIRE CORPORATION WHICH SELLS HARDWARE SPORTING GOODS AND AUTOMOTIVE REPAIR SERVICES FELL TEN PERCENT TO FOURTEEN POINT SIX TWO FIVE CANADIAN DOLLARS DOWN ONE POINT SIX TWO FIVE CANADIAN DOLLARS WISE STORES INCORPORATED FELL SEVENTEEN POINT FIVE PERCENT TO FIVE CANADIAN DOLLARS DOWN EIGHTY SEVEN POINT FIVE CANADIAN CENTS ON THE MONTREAL EXCHANGE WHILE SOME ANALYSTS CALLED THE DECLINES AN OVERREACTION SEVERAL SAID THEY WILL TRIM EARNINGS FORECASTS FOR A NUMBER OF CANADIAN RETAILERS QUOTE IT'S DIRECT COMPETITION TO ZELLERS THERE IS GOING TO BE MARKET SHARE LOSS ACROSS THE BOARD SAID MARILYN BROPHY ANALYST AT LEVESQUE BEAUBIEN GEOFFRION INCORPORATED FOR WAL MART THE MOVE INTO CANADA COMES ON THE HEELS OF ITS SUCCESSFUL ENTRY INTO THE MEXICAN MARKET ANALYSTS ESTIMATE THAT SOME OF WAL MART'S MEXICAN STORES ARE EXCEEDING ONE HUNDRED MILLION DOLLARS A YEAR EACH IN SALES WELL ABOVE THE COMPANY'S U. S. AVERAGE IT'S EXTREMELY IMPORTANT WE POSITION OURSELVES TO BE THE DOMINANT RETAILER IN NORTH AMERICA NOT JUST IN THE UNITED STATES AND THAT'S WHAT WE'RE DOING SAID DAVID GLASS WAL MART CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR. GLASS SAID THE COMPANY EXPECTS TO MODERNIZE THE UNITS WHICH AVERAGE ONE HUNDRED EIGHTEEN THOUSAND SQUARE FEET AND CONVERT THEM INTO WAL MART STORES WITHIN A YEAR AS A RESULT OF THE CANADIAN ACQUISITION MR. GLASS SAID WAL MART WILL SCALE BACK NINETEEN NINETY FOUR U. S. STORE OPENINGS TO ABOUT ONE HUNDRED TWENTY FIVE FROM THE PREVIOUSLY PLANNED ONE HUNDRED FIFTY WAL MART SAID IT WILL HIRE SUBSTANTIALLY ALL OF THE WOOLCO EMPLOYEES IN THE ACQUIRED STORES AND EXPECTS TO HIRE OTHER WOOLWORTH CANADA EMPLOYEES R. BRUCE WEST PRESIDENT AND CHIEF OPERATING OFFICER OF WOOLWORTH CANADA'S WOOLCO DIVISION WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OF WAL MART'S CANADIAN OPERATIONS JEFFREY FEINER AN ANALYST AT SALOMON BROTHERS INCORPORATED SAID THE WOOLCO STORES POSTED ABOUT ONE POINT THREE BILLION DOLLARS IN SALES LAST YEAR AND PREDICTED THAT WAL MART WILL BE ABLE TO SIGNIFICANTLY IMPROVE THOSE RESULTS HOWEVER WAL MART SAID THAT BECAUSE OF THE TIME AND EXPENSE OF CONVERSION IT DOESN'T EXPECT THE ACQUISITION TO ADD TO EARNINGS FOR THE YEAR ENDING JANUARY THIRTY FIRST NINETEEN NINETY FIVE WILLIAM K. LAVIN WOOLWORTH'S CHAIRMAN AND CHIEF EXECUTIVE SAID THE SALE OF THE CANADIAN WOOLCO STORES WOULD ALLOW THE RETAILER TO FOCUS OUR RESOURCES ON THE SPECIALTY BUSINESSES THAT PROVIDE THE HIGHEST RETURNS TO OUR SHAREHOLDERS LAST YEAR THE COMPANY SAID IT WOULD CLOSE ABOUT FOUR HUNDRED FIFTY OF ITS F. W. WOOLWORTH VARIETY STORES AND ABOUT THREE HUNDRED KINNEY SHOE STORES WHILE CONTINUING TO EXPAND ITS SPECIALTY FORMATS WOOLWORTH SAID IT WOULD CLOSE SELL OR CONVERT TO OTHER FORMATS THE TWENTY TWO WOOLCO STORES WAL MART DECIDED NOT TO ACQUIRE AND WILL CONTINUE TO OPERATE MORE THAN ONE THOUSAND FOUR HUNDRED STORES IN CANADA INCLUDING SPECIALTY STORES UNDER SUCH NAMES AS FOOT LOCKER NORTHERN REFLECTIONS AND BARGAIN SHOP FOR THE THIRD QUARTER ENDED OCTOBER THIRTIETH WOOLWORTH REPORTED A LOSS OF FOUR HUNDRED FIFTY TWO MILLION DOLLARS OR THREE DOLLARS AND FORTY THREE CENTS A SHARE AFTER A FOUR HUNDRED EIGHTY MILLION DOLLAR CHARGE FOR CLOSING OR CHANGING THE FORMATS OF ABOUT NINE HUNDRED SEVENTY LARGELY UNPROFITABLE STORES WOOLWORTH SAID THE SALE TO WAL MART WILL RESULT IN A NONCASH CHARGE TO NET INCOME OF ABOUT FORTY FIVE MILLION DOLLARS OR THIRTY FOUR CENTS A SHARE BECAUSE OF THE RECOGNITION OF FOREIGN CURRENCY TRANSLATION LOSSES THAT HAD PREVIOUSLY BEEN CHARGED TO THE FOREIGN CURRENCY ACCOUNT IN SHAREHOLDERS' EQUITY THE COMPANY SAID IT HADN'T DECIDED YET TO WHICH QUARTER THE CHARGE WOULD BE APPLIED WAL MART SAID THAT SUBJECT TO CANADIAN REGULATORY APPROVAL IT EXPECTS TO COMPLETE THE ACQUISITION BY THE BEGINNING OF MARCH WAL MART'S MAJOR COMPETITORS IN CANADA WILL INCLUDE THE ZELLERS CHAIN AS WELL AS KMART CORPORATION WHICH RECENTLY ANNOUNCED PLANS TO ENLARGE ITS ONE HUNDRED TWENTY SEVEN KMART STORES IN CANADA MOST OF WHICH ARE DECADES OLD AND RELATIVELY SMALL BY THE END OF NINETEEN NINETY SIX BECAUSE OF CANADA'S HIGHER WAGES AND TAXES INDUSTRY OBSERVERS DON'T EXPECT WAL MART TO PRICE ITS GOODS AS LOW AS IT DOES IN THE U. S. ALTHOUGH THEY EXPECT AGGRESSIVE PRICING EARLY ON AS WAL MART ATTEMPTS TO BUILD ITS CUSTOMER BASE IN NEW YORK STOCK EXCHANGE TRADING FRIDAY WOOLWORTH ROSE FIFTY CENTS TO TWENTY FIVE POINT SIX TWO FIVE DOLLARS AND WAL MART SHARES ROSE TWELVE POINT FIVE CENTS TO TWENTY FIVE POINT SIX TWO FIVE DOLLARS NESTLE S. A. THE BIG SWISS FOODS CONCERN DENIED RUMORS CIRCULATING IN MEXICO THAT IT PLANS TO PULL OUT OF THAT COUNTRY QUOTE UTTER BALONEY QUOTE SAID A SPOKESMAN FRIDAY THE RUMOR OF A PULLBACK IS RIDICULOUS THE COMPANY OPERATES FIFTEEN FACTORIES IN MEXICO AND HAD TOTAL NINETEEN NINETY TWO SALES OF THE EQUIVALENT OF ONE POINT SEVEN BILLION SWISS FRANCS ONE POINT ONE FIVE BILLION DOLLARS THERE THE PULLBACK RUMOR IS RELATED TO A STRIKE BY TWO THOUSAND NESTLE WORKERS IN MEXICO THE ISSUE CENTERS ON STRUCTURING OUR STAFF IN A MORE COMPETITIVE WAY IT HAS NOTHING TO DO WITH MAJOR LAYOFFS THE SPOKESMAN SAID HE ADDED THAT THE SITUATION HAD TO DO PARTLY WITH CHANGING WORK RULES MORE FLEXIBLE FACTORIES MAKING THEM MORE ADAPTABLE ACCORDING TO THE NESTLE SPOKESMAN THE LABOR DISPUTE ALSO HAS NOTHING TO DO WITH SALARIES OR SOCIAL BENEFITS NESTLE'S EMPLOYEES ARE THE BEST PAID IN THE MEXICAN FOOD INDUSTRY AND RECEIVE PAY AND BENEFITS THAT RANK THEM IN THE TOP LEVEL GENERALLY IN THE COUNTRY QUOTE ONE MUSTN'T FORGET THAT IN MEXICO THERE IS NOW A CERTAIN CLIMATE OF UNCERTAINTY AND WE DON'T EXCLUDE THAT THIS PLAYED A ROLE IN THE DECISION OF UNIONS TO GO ON STRIKE QUOTE HE ADDED THE LABOR DISPUTE BEGAN DECEMBER SEVENTH AND NESTLE CONCEDES IT COULD CREATE PROBLEMS IF IT BECOMES DRAWN OUT IF WE CAN'T PRODUCE INEVITABLY WE WILL HAVE PROBLEMS PUTTING STUFF ON THE SHELVES THE SPOKESMAN SAID NESTLE SAID IT HAS ASKED FEDERAL MEDIATORS IN MEXICO TO LOOK AT THE MATTER AND THE COMPANY IS HOPEFUL A SOLUTION CAN BE FOUND LAST SPRING TWO MAJOR MEDICAL EQUIPMENT MANUFACTURERS WERE LOCKED IN A THIRTY MILLION DOLLAR PATENT INFRINGEMENT BATTLE OVER A TESTING DEVICE ALREADY THEY HAD SPENT ONE YEAR AND SEVERAL HUNDRED THOUSAND DOLLARS IN PRETRIAL WORK TO RESOLVE THE ISSUE THROUGH THE COURTS THE PARTIES FACED THE PROSPECT OF AN ADDITIONAL EIGHTEEN MONTHS AND AT LEAST FIVE MILLION DOLLARS IN LITIGATION COSTS A FEDERAL JUDGE SUGGESTED MEDIATION WITH THE HELP OF A HIGHLY QUALIFIED NEUTRAL THEY RESOLVED THE MATTER IN LESS THAN TWO DAYS MANAGERS OF HEALTH RELATED COMPANIES MUST CONTEND WITH THE SAME BROAD RANGE OF BUSINESS DISPUTES THAT CONFRONT THEIR COUNTERPARTS IN OTHER INDUSTRIES INCLUDING INTELLECTUAL PROPERTY CONSTRUCTION PRODUCT LIABILITY AND EMPLOYMENT ISSUES HOWEVER AN OVERHAUL OF THE HEALTH SYSTEM INVITES A FLOOD OF NEW LITIGATION IF THE CLINTON PLAN PASSES IN ANYTHING LIKE ITS CURRENT FORM THESE SUITS MIGHT INCLUDE NEW INSURER CHALLENGES TO THE REGULATION OF PREMIUMS AND OBJECTIONS BY DRUG COMPANIES AND PHYSICIANS TO PRICING LIMITS PRIVATE ANTITRUST ACTIONS WOULD UNDOUBTEDLY INCREASE IF HEALTH CARE BECOMES A FEDERALLY PROTECTED RIGHT CONSUMERS AND REGIONAL ALLIANCES MIGHT BRING CLAIMS AGAINST FEDERAL AND STATE AGENCIES THE COURTS LIMITED IN CAPACITY AND FUNDING ARE ILL PREPARED FOR THE INCREASED BURDEN IN SOME PARTS OF THE NATION CIVIL COURT DOCKETS ALREADY ARE DELAYED BY AS MUCH AS FIVE YEARS WHILE CRITICAL POLICY AND CONSTITUTIONAL ISSUES SHOULD BE RESOLVED THROUGH THE COURTS ALTERNATIVE DISPUTE RESOLUTION A. D. R. IS A BETTER LOWER COST WAY TO HANDLE MANY ISSUES THAT ARE EMERGING FROM HEALTH CARE REFORM THE USE OF NONBINDING A. D. R. PROCESSES HAS ADVANTAGES NOT AVAILABLE IN THE COURTS FOR INSTANCE HIGHLY QUALIFIED SCIENTIFIC OR TECHNICAL EXPERTS CAN HELP RESOLVE TECHNICALLY DIFFICULT MEDICAL DISPUTES OR RENDER EXPERT NONBINDING OPINIONS DISPUTES CAN BE RESOLVED PROMPTLY OFTEN IN A MATTER OF DAYS OR WEEKS RATHER THAN MONTHS OR YEARS A HIGHLY SKILLED INNOVATIVE MEDIATOR CAN HELP PARTIES ACHIEVE ADVANTAGEOUS BUSINESS RESULTS AND FREQUENTLY RETAIN IMPORTANT BUSINESS RELATIONSHIPS IN COLLABORATION WITH A COMMITTEE OF HEALTH LAW SPECIALISTS REPRESENTING MANAGED CARE ORGANIZATIONS HOSPITALS PHYSICIANS AND MEDICAL PRODUCT MANUFACTURERS THE CENTER FOR PUBLIC RESOURCES HEALTH DISPUTES PROJECT RECENTLY EXAMINED FIFTY NINE CATEGORIES OF DISPUTES THAT HAVE BOTH LARGE EXCESS COSTS AND THE POTENTIAL FOR RESOLUTION THROUGH A. D. R. A RESULTING PUBLICATION GIVES HEALTH INDUSTRY COUNSEL A BROAD RANGE OF MODEL A. D. R. PROCEDURES THAT CAN BE USED TO ADDRESS INDUSTRY CONFLICTS INCLUDING MODELS SPECIALLY DESIGNED FOR MANAGED CARE AND DISAFFILIATION DISPUTES BOSTON UNIVERSITY'S SCHOOL OF PUBLIC HEALTH IS TRAINING DOCTORS NURSES AND ADMINISTRATORS IN NEGOTIATION AND MEDIATION SKILLS TO BETTER HANDLE CONFLICTS WITHIN HOSPITAL SETTINGS A NATIONWIDE GROUP OF HEALTH INSURERS HAS AGREED TO RESOLVE THROUGH MEDIATION OR ARBITRATION INSTEAD OF LITIGATION ANY TERRITORY OR LICENSING DISPUTES THAT MAY ARISE AMONG ITS MEMBERS THE NATION'S BLOOD BANKS ARE ADOPTING A. D. R. TO MINIMIZE THE COSTS AND DISRUPTION OF LITIGATION FOR PEOPLE INFECTED WITH TRANSFUSION ASSOCIATED H. I. V. AND THEIR FAMILIES STANFORD UNIVERSITY HOSPITAL USES AN OMBUDSMAN'S OFFICE THAT COMBINES IMPROVED COMMUNICATION AND MEDIATION TO RESOLVE DISPUTES AMICABLY BETWEEN STUDENTS OR EMPLOYEES AND THE HOSPITAL A MEDICAL COOPERATIVE IN THE NORTHWESTERN U. S. USES A PRIVATE MEDIATION PROCESS FOR PATIENT MALPRACTICE CLAIMS WHILE MEDIATION IS NOT OFFERED IN EVERY CASE AT LEAST FORTY PERCENT OF THE CLAIMS ARE BEING SUBMITTED TO THE SYSTEM WITH A FIFTY PERCENT SETTLEMENT SUCCESS RATE A LARGE PHARMACEUTICAL COMPANY ENGAGES HIGHLY QUALIFIED NEUTRAL PARTIES TO HELP RESOLVE CONTRACT AND PATENT DISPUTES VARIOUS DRUG MANUFACTURERS HAVE EMPLOYED MEDIATION AND ADVISORY ARBITRATION IN CONSUMER INJURY CASES AND SEVERAL HAVE INCORPORATED A. D. R. CLAUSES IN SUPPLY CONTRACTS AND LIABILITY INSURANCE POLICIES NEW YORK CITY'S COMMISSION ON HUMAN RIGHTS HANDLED EIGHTY PERCENT OF ITS ONE THOUSAND SEVEN HUNDRED AIDS RELATED COMPLAINTS IN THE NINETEEN EIGHTIES THROUGH EARLY INTERVENTION NEGOTIATION AND MEDIATION USE OF A. D. R. BY HEALTH INDUSTRY ORGANIZATIONS NEED NOT WAIT FOR HEALTH CARE REFORM OR CONGRESSIONAL ACTION HEALTH MANAGERS AND COUNSEL HAVE A UNIQUE OPPORTUNITY TO HELP BRING ABOUT MEANINGFUL COST REDUCTIONS WITHIN THEIR OWN ORGANIZATIONS IN THE PROCESS THEY CAN PLAY A ROLE IN REFORMING NATIONAL HEALTH CARE MR. HENRY IS PRESIDENT OF THE NEW YORK BASED C. P. R. LEGAL PROGRAM A NONPROFIT ALLIANCE OF LAWYERS AND ACADEMICS DEVELOPING ALTERNATIVES TO LITIGATION THYSSEN STAHL THE STEELMAKING DIVISION OF THYSSEN A. G. SAID IT WOULD CUT A FURTHER ONE THOUSAND TWO HUNDRED FIFTY JOBS IN NINETEEN NINETY FOUR CITING NINETEEN NINETY THREE FOURTH QUARTER LOSSES THE COMPANY ANNOUNCED PREVIOUSLY THAT IT WOULD CUT TEN THOUSAND OF A TOTAL OF THIRTY FIVE THOUSAND JOBS IN ITS STEEL OPERATIONS THYSSEN STAHL BLAMED QUOTE CATASTROPHIC LOSSES IN THE LAST QUARTER OF NINETEEN NINETY THREE QUOTE AND THE DECISION BY THE EUROPEAN UNION TO ALLOW CONTINUED SUBSIDIES TO STATE STEEL COMPANIES FOR THE DECISION TO SLASH JOBS A SPOKESMAN FOR THYSSEN STAHL WOULDN'T SUPPLY SPECIFIC LOSS FIGURES FOR THE FOURTH QUARTER OR THE YEAR THE COMPANY SAID ITS DIRE FISCAL SITUATION WOULD PREVENT IT FROM EASING THE BLOW FROM THE LAYOFFS THROUGH VOLUNTARY EARLY RETIREMENT PROGRAMS WE JUST DON'T HAVE THE MONEY ANYMORE THE SPOKESMAN SAID HOWEVER HE ADDED THAT THE COMPANY WAS IN TALKS WITH THE GERMAN STATE OF NORTH RHINE WESTPHALIA ON WHAT COULD BE DONE FOR THE STEELWORKERS WHO LOSE THEIR JOBS THYSSEN A. G.'S LARGEST SINGLE AREA IS STEEL BUT IT ALSO HAS EXTENSIVE OPERATIONS IN TRADING AND SERVICES STAMPING AND CASTING MACHINE ELEVATOR AND ESCALATOR BUILDING AND OTHER ENGINEERING PRODUCTS ITALIAN STATE OWNED HOLDING COMPANY ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE ANNOUNCED IT WOULD SELL FIVE HUNDRED MILLION SHARES IN BANCA COMMERCIALE ITALIANA THE PRICE WILL BE ANNOUNCED CLOSER TO THE TIME OF FLOTATION ON FEBRUARY TWENTY EIGHTH I. R. I. SAID IT IS EXPECTED THE SELL OFF WILL RAISE ABOUT TWO POINT FOUR TRILLION LIRE ONE POINT FOUR ONE BILLION DOLLARS FOR I. R. I. BEFORE FEES I. R. I. SAID FORTY PERCENT OF THE OFFERING OR ABOUT TWO HUNDRED MILLION SHARES WILL GO TO ITALIAN RETAIL INVESTORS WITH A CORRESPONDING NUMBER ALLOTTED TO INSTITUTIONS IT ALSO WILL OFFER FORTY MILLION SHARES TO B. C. I. EMPLOYEES AND FORTY MILLION SHARES WILL GO TOWARD AN OVERALLOTTMENT OPTION IF THE OFFER IS OVERSUBSCRIBED THE REST WILL GO IN A BONUS SHARE OPTION WORTH ONE SHARE FOR EVERY TEN HELD IF SHAREHOLDERS RETAIN THEIR STOCK FOR AT LEAST THREE YEARS THE B. C. I. SALE HAD BEEN BROUGHT FORWARD AFTER A SUCCESSFUL SELL OFF LAST MONTH OF CREDITO ITALIANO ANOTHER ITALIAN RETAIL BANK FOLLOWING STRONG DOMESTIC DEMAND A SINGLE SHAREHOLDING IN B. C. I. WILL BE LIMITED TO ONE PERCENT OF THE BANK OR TEN POINT FIVE MILLION SHARES WHILE INSTITUTIONS CAN TAKE AS MUCH AS TWO PERCENT OF THE ISSUE I. R. I. ITALY'S LARGEST EMPLOYER CURRENTLY OWNS FORTY FIVE POINT NINE PERCENT OF B. C. I. WHILE THE REST IS FLOATED ON THE MILAN STOCK EXCHANGE B. C. I. SHARES CLOSED AT FOUR THOUSAND SEVEN HUNDRED SEVENTY FIVE LIRE OFF SIXTY FIVE LIRE STEVEN G. STAVES FORMERLY VICE PRESIDENT OF MARKETING FOR THE CONSUMER HEALTH GROUP OF THIS COMPANY'S STERLING WINTHROP INCORPORATED UNIT WAS NAMED PRESIDENT OF STERLING HEALTH U. S. A. THE U. S. CONSUMER HEALTH PRODUCTS DIVISION OF STERLING WINTHROP HE SUCCEEDS DOUGLAS L. MEYER WHO RESIGNED FROM THE COMPANY TO PURSUE OTHER INTERESTS STERLING WINTHROP DEVELOPS MAKES AND MARKETS PHARMACEUTICALS AND CONSUMER HEALTH PRODUCTS EASTMAN KODAK IS A PHOTOGRAPHY HEALTH CARE PRODUCTS AND CHEMICALS CONCERN I. B. M. FEDERAL SYSTEMS COMPANY SAID IT WON A ONE HUNDRED FIFTY FOUR POINT EIGHT MILLION DOLLAR CONTRACT TO BUILD AND INSTALL THREE THOUSAND ONE HUNDRED FORTY FOUR AUTOMATED MAIL SORTERS FOR THE U. S. POSTAL SERVICE THE INTERNATIONAL BUSINESS MACHINES CORPORATION SUBSIDIARY WHICH SPECIALIZES IN SOFTWARE FOR SENSORS AND COMMUNICATIONS DEVICES WILL INSTALL THE DEVICES IN POST OFFICES THROUGHOUT THE COUNTRY OVER THE NEXT TWENTY EIGHT MONTHS I. B. M. RECENTLY SIGNED A DEFINITIVE AGREEMENT TO SELL ITS FEDERAL SYSTEMS DIVISION TO LORAL CORPORATION FOR ONE POINT FIVE SIX BILLION DOLLARS GENESCO INCORPORATED IN THE WAKE OF WEAKER THAN EXPECTED HOLIDAY SALES SAID IT EXPECTS TO REPORT A LOSS FOR ITS FISCAL FOURTH QUARTER THE NEWS HELPED PUSH THE COMPANY'S STOCK DOWN FIFTEEN PERCENT IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE GENESCO CLOSED AT FOUR POINT THREE SEVEN FIVE DOLLARS OFF SEVENTY FIVE CENTS A SHARE IN THE YEAR EARLIER FOURTH QUARTER ENDED JANUARY THIRTY FIRST NINETEEN NINETY THREE THE FOOTWEAR AND CLOTHING CONCERN HAD NET INCOME OF THREE POINT SIX MILLION DOLLARS OR FIFTEEN CENTS A SHARE ON REVENUE OF ONE HUNDRED FIFTY POINT EIGHT MILLION DOLLARS THAT INCLUDED A CHARGE OF FIVE HUNDRED EIGHTY THREE THOUSAND DOLLARS OR TWO CENTS A SHARE FOR EARLY RETIREMENT OF DEBT GENESCO HAD INDICATED IT WOULD POST A LOSS FOR FISCAL NINETEEN NINETY FOUR IN FISCAL NINETEEN NINETY THREE IT REPORTED EARNINGS OF NINE POINT ONE MILLION DOLLARS OR THIRTY EIGHT CENTS A SHARE ON REVENUE OF FIVE HUNDRED THIRTY NINE POINT NINE MILLION DOLLARS GENESCO SAID THE SALES SHORTFALL DURING THE HOLIDAYS RESULTED IN DEEP PRICE CUTS AND UNDERUTILIZATION OF THE COMPANY'S MANUFACTURING CAPACITY AS A RESULT IT SAID IT IS CONSIDERING CLOSING UNPROFITABLE RETAIL STORES CUTTING BACK MANUFACTURING CAPACITY AND REDUCING OVERHEAD EXPENSES THE SIZE OF ITS FOURTH QUARTER LOSS WILL DEPEND ON THOSE ACTIONS THE COMPANY SAID SEPARATELY GENESCO NAMED HARRY D. GARBER SIXTY FOUR YEARS OLD CHAIRMAN OF THE BOARD EFFECTIVE JANUARY THIRTY FIRST MR. GARBER SERVED AS VICE CHAIRMAN OF EQUITABLE LIFE ASSURANCE SOCIETY OF THE U. S. A UNIT OF EQUITABLE COMPANIES UNTIL LAST YEAR HE HAS BEEN A GENESCO DIRECTOR SINCE NINETEEN SEVENTY SIX HE SUCCEEDS WILLIAM S. WIRE THE SECOND SIXTY TWO WHOSE TERM AS CHAIRMAN EXPIRES JANUARY THIRTY FIRST MR. WIRE WILL REMAIN A DIRECTOR AND CONSULTANT TO GENESCO ADAM OPEL A. G. THE GERMAN SUBSIDIARY OF GENERAL MOTORS CORPORATION PLANS SHORTENED WORK SHIFTS IN THE FIRST QUARTER TO REDUCE PRODUCTION THE SHORT SHIFTS WILL APPLY TO THREE PLANTS BUT NOT TO THE FLAGSHIP PLANT IN RUESSELSHEIM WHERE THE OMEGA VECTRA AND CALIBRA MODELS ARE BUILT IN BOCHUM WHERE THE COMPANY BUILDS ITS POPULAR ASTRA MODEL SIX DAYS OF SHORT SHIFTS IN THE FIRST QUARTER ARE PLANNED IN THE PARTS PLANT AT KAISERSLAUTERN SEVEN DAYS ARE PLANNED OPEL SAID IN THE EASTERN GERMAN PLANT IN EISENACH WHERE OPEL MANUFACTURES CORSA AND ASTRA THREE DAYS ARE PLANNED S. P. X. CORPORATION MUSKEGON MICHIGAN SAID IT AGREED TO ACQUIRE AN ADDITIONAL FORTY NINE PERCENT INTEREST IN SEALED POWER TECHNOLOGIES LIMITED PARTNERSHIP FROM RIKEN CORPORATION TOKYO IN A TRANSACTION VALUED AT TWO HUNDRED THIRTY NINE MILLION DOLLARS S. P. X. AN AUTO PARTS SUPPLIER ALREADY HOLDS A FORTY NINE PERCENT INTEREST IN SEALED POWER TECHNOLOGIES WHICH MAKES VEHICLE REPLACEMENT PARTS THE LATEST ACQUISITION WILL RESULT IN A ONE HUNDRED MILLION DOLLAR CHARGE AGAINST FOURTH QUARTER EARNINGS S. P. X. SAID THAT CHARGE WILL BE PARTIALLY OFFSET BY AN ESTIMATED SIXTY FIVE MILLION DOLLAR GAIN FROM THE PREVIOUSLY REPORTED SALE OF S. P. X.'S SEALED POWER REPLACEMENT AND TRUTH DIVISIONS ONE DAY SEVERAL YEARS AGO DEEP IN RECESSION THE PEOPLE OF THE GUDBRANDSDALEN VALLEY UNCORKED A BOTTLE OF THEIR POTATO AND CARAWAY LIBATION CALLED AQUAVIT AND TOOK A HARD LOOK AT THEMSELVES IT WASN'T A PRETTY SIGHT WHAT DID THEY SEE THEY SAW LONELY TROLLS THEIR MYTHOLOGICAL MASCOTS WHICH EVEN THE MOST CHARITABLE NORWEGIANS WOULD DESCRIBE AS UGLY EVIL AND A LITTLE BIT STUPID THE VALLEY'S RESIDENTS HAD SCULPTED A HUGE CONCRETE TROLL WITH A HUGE WART ON ITS HEAD THE LARGEST TROLL AND WART IN THE WORLD TO ATTRACT TOURISTS TO THE AREA THE BIG TROLL ALAS WASN'T WORKING THEY SAW AN OMINOUS OIL SHADOW EXTENDING FROM THE NORTH SEA THE OFFSHORE OIL BOOM WAS ENRICHING COASTAL COUNTIES AND SUCKING THE LIFE OUT OF THE NORWEGIAN INTERIOR YOUNG WOMEN WERE FLEEING THE VALLEY IN DROVES THE LONG WINTER NIGHTS WERE NOT ONLY COLD THEY WERE BORING THEY SAW A RIGID INSULAR CITIZENRY APPROACHING THE TWENTY FIRST CENTURY WITH ALL THE ZEST OF A POACHED SALMON ONE OF THE VALLEY'S PROMINENT BUSINESSMEN STOOD UP AT A TOWN MEETING AND CALLED HIS NEIGHBORS QUOTE NOSY CHEAP AND ENVIOUS QUOTE EVEN THE BUMMED OUT BREWERY TURNED OFF ITS TAP AND LEFT TOWN WHAT TO DO GET THE WINTER OLYMPICS SOMEONE SUGGESTED AFTER ALL LILLEHAMMER IS THE ONLY CITY IN THE WORLD WITH A SKIER IN ITS COAT OF ARMS THE OLYMPICS WOULD ATTRACT LOTS OF TOURISTS GIVE THE LOCALS SOMETHING TO LOOK FORWARD TO AND SAVE THE REGION FROM ARCTIC OBLIVION SO GET THE WINTER OLYMPICS THEY DID AND THE GUDBRANDSDALEN VALLEY HOST TO THE GAMES AND THE WORLD BEGINNING FEBRUARY TWELFTH HASN'T BEEN THE SAME SINCE IT'S BEEN A CULTURAL REVOLUTION SAYS TORILL BROCH SEEBERG DIRECTOR OF PUBLIC RELATIONS FOR THE LILLEHAMMER OLYMPIC ORGANIZING COMMITTEE OR LOOC A COMICAL LOOKING GIZMO A RED PLASTIC HOOK CONNECTED BY A STRETCH OF ELASTIC TO A BLUE HOOK DANGLES FROM HER COLLAR MS. SEEBERG WRAPS THE STRING BEHIND HER HEAD AND PLACES THE HOOKS IN THE CORNERS OF HER MOUTH PULLING HER LIPS INTO A GRIN THE LOOK LOOC WANTS THE WORLD TO SEE IT'S TO TEACH US TO SMILE SHE SAYS ONE DAY THE OLYMPICS WILL FACE A TRULY COLOSSAL IMAGE MAKEOVER CHALLENGE LIKE SAY CHINA BUT FOR THE MOMENT NORWAY AND THE NORWEGIANS PARTICULARLY THE DOUR DENIZENS OF THE SLEEPY GUDBRANDSDALEN VALLEY ARE CHALLENGE ENOUGH THE OLYMPICS ARE A CONTRADICTION FOR THIS REGION SAYS HANS HAGENE OLYMPIC COORDINATOR FOR THE TOWN OF GJOVIK WHICH WILL HOST SOME OF THE HOCKEY GAMES WE'RE NOT USED TO WELCOMING FOREIGNERS AND NOW THE WORLD IS COMING THE OLYMPICS ARE SUCH A JOLT EACH DAY MORE THAN ONE HUNDRED THOUSAND TOURISTS FROM AROUND THE WORLD WILL FLOCK TO A REGION WITH A TOTAL POPULATION OF TWO HUNDRED FIFTY THOUSAND THAT THE EASTERN NORWAY RESEARCH INSTITUTE BASED HERE HAS ASSIGNED AN ANTHROPOLOGIST TO STUDY THE REACTION OF THE LOCALS QUOTE NOTHING EVER HAPPENS HERE QUOTE SAYS LOCAL POET OYVIND BERG HE RECALLS MOVING TO LILLEHAMMER SEVERAL YEARS AGO FROM THE MORE COSMOPOLITAN TOWN OF BERGEN AND HEADING OUT TO THE GREEN MARKET THE VENDORS HE SAYS TRIED TO TALK HIM OUT OF BUYING THEIR FRUIT THEY DIDN'T EVEN WANT TO SELL THE APPLES ARE YOU SURE THEY WOULD ASK THESE APPLES WELL O. K. THE POET SAYS THE PEOPLE HERE ARE SAID TO BE THE SLOWEST IN NORWAY THAT SAYS A LOT PRIZE MISFIT IT DOES THIS IS A COUNTRY AFTER ALL THAT BESTOWS THE PEER GYNT PRIZE AS ONE OF ITS HIGHEST NATIONAL ACCOLADES EVEN THOUGH PEER GYNT A CHARACTER CREATED BY NORWEGIAN PLAYWRIGHT HENRIK IBSEN IS ONE OF THE GREAT MISFITS AND LIARS IN LITERARY ANNALS NORWAY IS ALSO THE INSPIRATION FOR HUMORIST GARRISON KEILLOR'S LAKE WOBEGON A DOZY SETTLEMENT WHERE PEOPLE PAY HOMAGE TO A STATUE OF THE UNKNOWN NORWEGIAN NORWAY NEEDS THE EXPOSURE LAMENTS LOOC CHAIRMAN GERHARD HEIBERG IN GRAND NORDIC UNDERSTATEMENT TO BE SURE NORWAY HAS BEEN ON A GEOPOLITICAL ROLL OF LATE SHAKING OFF THE ANONYMITY THAT COMES FROM BEING A COUNTRY OF ONLY FOUR MILLION PEOPLE ON THE NORTHERN RIM OF EUROPE WHERE THE WINTER SUN SETS ON THE CAPITAL CITY BY MIDAFTERNOON NORWAY HAS HOSTED THE BREAKTHROUGH PEACE TALKS BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION IT IS CAMPAIGNING FOR MEMBERSHIP IN THE EUROPEAN UNION FORMERLY KNOWN AS THE EUROPEAN COMMUNITY AND ITS SOCCER TEAM HAS MADE THE FINALS OF THIS SUMMER'S WORLD CUP THE MOST WATCHED SPORTING EVENT IN THE WORLD STILL SAYS EINI DUEDAHL HOLMEN OF LOOC QUOTE PEOPLE OVERSEAS THINK OF NORWAY AS A PLACE WHERE REINDEER RUN IN THE STREETS AND PEOPLE GO FISHING ALL THE TIME QUOTE WHICH IS WHERE THE OLYMPICS COME IN THE GAMES TO BE PLAYED OUT OVER SIXTEEN DAYS IN THE GUDBRANDSDALEN VALLEY ONE HUNDRED MILES NORTH OF OSLO ARE SHOVING THE NORWEGIANS SQUARELY ONTO THE WORLD'S CENTER STAGE AND THERE THEY STAND AWED AND SQUINTING INTO THE BRIGHT LIGHTS LIKE TROLLS EMERGING FROM THEIR SUBTERRANEAN HIDEAWAYS BUT DETERMINED TO SQUEEZE THE GAMES FOR EVERYTHING THEY ARE WORTH THE NORWEGIANS WHO GAVE US THE WORDS SKI AND SLALOM HAVE ALWAYS USED THE WINTER GAMES TO DISPLAY THEIR SPORTING SKILLS DESPITE ITS TINY POPULATION NORWAY HAS WON MORE GOLD MEDALS THAN ANY OTHER NATION EXCEPT THE FORMER SOVIET UNION BUT THE LILLEHAMMER OLYMPICS ARE DESIGNED TO SHOW OFF NORWAY'S PROWESS IN OTHER DISCIPLINES PARTICULARLY MANUFACTURING TOURISM AND TECHNOLOGY THE ALPINE EVENTS WILL UNVEIL THE HAUNTINGLY BEAUTIFUL SCENERY ON THE RIM OF THE ARCTIC CIRCLE THE HOCKEY GAMES WILL SHOWCASE A MIND BOGGLING ARENA CARVED INTO A MOUNTAINSIDE WITH THE CUTTING EDGE OF CONSTRUCTION TECHNOLOGY THE SPEED SKATING RACES WILL SPOTLIGHT A WOOD DOMED STADIUM THAT PUSHES THE ENVELOPE ON THE USE OF TIMBER IN TURN THE PARADE OF VISITORS FROM AROUND THE WORLD WILL SHOW THE LOCALS THAT WITH A LITTLE INITIATIVE AND A WELL TIMED SMILE THERE IS A HUGE MARKET RIPE FOR THE PICKING MS. HOLMEN BEGINS THE HARVEST BY CHEERILY LEADING A TOUR AROUND LILLEHAMMER'S OLYMPIC BUSINESS CENTER WHERE FOR THE FIRST TIME EVER COMPANIES FROM THE NEIGHBORING AND BICKERING COUNTIES OF OPPLAND AND HEDMARK THE ONLY TWO NORWEGIAN COUNTIES WITHOUT A COASTLINE HAVE COME TOGETHER UNDER ONE ROOF TO PROMOTE THEIR WELFARE THERE IS A COMPANY THAT MAKES TWELVE THOUSAND DIFFERENT KINDS OF FISH HOOKS AND AN AMBITIOUS SNOWPLOW MAKER WHOSE BLADES ARE WORKING AS FAR AWAY AS THE SOUTH POLE MS. HOLMEN PAUSES IN FRONT OF A MINIATURE REPLICA OF ONE OF THE COUNTRY'S ARCHITECTURAL WONDERS AN OFFSHORE OIL PLATFORM WHICH TOWERS OVER SCALE REPLICAS OF THE EMPIRE STATE BUILDING THE EIFFEL TOWER AND AN EGYPTIAN PYRAMID SHE FLASHES A TRULY GENUINE SMILE IT WAS BUILT BY STATOIL OUR NATIONAL OIL COMPANY SHE SAYS PROUDLY IN LAKE WOBEGON STYLE THEY NAMED IT THE TROLL PLATFORM NOT EVERYONE AS COULD BE EXPECTED HAS JUMPED ON THE PROMOTIONAL BANDWAGON AS THE COSTS OF STAGING THE OLYMPICS SUPPORTED BY THE STATE TREASURY HAVE RISEN FROM JUST UNDER TWO HUNDRED MILLION DOLLARS TO JUST OVER ONE BILLION DOLLARS SOME NORWEGIANS HAVE WONDERED WHAT THEY HAVE GOTTEN THEMSELVES INTO I'M HAPPY LILLEHAMMER DIDN'T KNOW ALL THE OLYMPICS INVOLVE OR THEY WOULD NEVER HAVE APPLIED SAYS MR. HEIBERG THE CHAIRMAN WHO COMES FROM OSLO TO SPEND ALL THAT MONEY IN THIS LITTLE DISTRICT FOR THAT SHORT OF TIME IS A WASTE OF MONEY SAYS MR. BERG THE POET I'VE WRITTEN A POEM WHERE I'VE CANCELED THE OLYMPICS JUST CALLED THE WHOLE THING OFF SOMEONE HAD TO DO IT BUT MOSTLY THERE IS GREAT EXPECTATION THAT ALL THIS WILL LEAD TO FUTURE PROSPERITY FOR NORWAY IN GENERAL AND THE LILLEHAMMER REGION IN PARTICULAR EVEN MR. BERG IS GETTING HIS SHARE GAINING AN ASSIGNMENT TO COVER THE GAMES FROM AN ODDBALL PERSPECTIVE FOR A NORWEGIAN PAPER THE OLYMPICS WILL BEQUEATH A STATE OF THE ART TELEVISION BROADCAST CENTER THAT LILLEHAMMER WILL CONVERT INTO A DISTRICT COLLEGE WITH ROOM FOR THREE THOUSAND STUDENTS SPECIALIZING IN FILM AND COMMUNICATIONS TECHNOLOGY THE ULTERIOR MOTIVE IS TO GIVE THE YOUNG PEOPLE OF THE VALLEY INCENTIVE TO STAY AT HOME TO STUDY AND WORK ESPECIALLY THE WOMEN IN ONE AREA OF OPPLAND COUNTY WHICH HAS THE LOWEST BIRTHRATE IN NORWAY THERE ARE CURRENTLY ONLY SEVENTY WOMEN TO EVERY ONE HUNDRED MEN IN THE TWENTY TO FORTY AGE RANGE THE OLYMPICS AS A MARKETING TOOL CAN'T BE BEAT MOELVEN LIMTRE AS COULD HAVE BUILT A CONVENTIONAL SPEED SKATING ARENA IN THE TOWN OF HAMAR INSTEAD IT ERECTED A TWELVE THOUSAND SEAT STRUCTURE THAT LOOKS LIKE THE UPTURNED HULL OF A VIKING SHIP OR VIEWED WITH THE AID OF A SHOT OF AQUAVIT AN UPSIDE DOWN TACO SHELL EITHER WAY THE WONDROUS ROOF IS SUPPORTED BY THE LONGEST WOOD SPAN IN THE WORLD STRETCHING NEARLY ONE HUNDRED YARDS A TECHNOLOGICAL MILESTONE MADE POSSIBLE BY MOELVEN'S LAMINATED GLUE PROCESS THAT MAKES THE WOOD STRONGER AND MORE FIRE RESISTANT THAN STEEL QUOTE MOELVEN IS READY TO GO AROUND THE WORLD QUOTE SAYS ODD OLAV SOLBAKKEN THE COMPANY'S EXPORT SALES DIRECTOR HE ENVISIONS CONSTRUCTING WOODEN INDOOR SOCCER STADIUMS ACROSS THE NORTHERN TUNDRA THROUGHOUT THE EQUATORIAL RAIN FORESTS AND IN THE DESERTS OF THE MIDDLE EAST WHERE NORWAY ALREADY HAS A FOOT IN THE DOOR WITH THE PEACE TALKS WITH THE OLYMPICS AND THE MIDDLE EAST TALKS EYES ARE ON NORWAY WE'D BE VERY STUPID IF WE WOULDN'T CAPITALIZE ON THIS ON THE OTHER SIDE OF LAKE MJOSA THE TOWN OF GJOVIK IS ALREADY TAKING THE NOTORIETY OF ITS CAVERN HALL HOCKEY ARENA TO THE BANK RATHER THAN BUILD A NORMAL RINK THE TOWN DECIDED TO PUT ONE WITH SOME SIX THOUSAND SEATS IN THE SIDE OF A MOUNTAIN NOW IT HAS THE LARGEST UNDERGROUND SPACE FOR PUBLIC USE IN THE WORLD SO FAR MORE THAN TWO DOZEN DELEGATIONS FROM JAPAN AND KOREA COUNTRIES RUNNING OUT OF FLAT LAND FOR HOUSING AND COMMERCIAL DEVELOPMENTS HAVE COME TO GJOVIK TO PORE OVER FOR A PRICE THE HIGH TECH RESEARCH STUDIES THESE TECHNOLOGICAL ACHIEVEMENTS HAVE GIVEN NORWEGIAN MANUFACTURING A SELLING POINT ABROAD TRUMPETED BY EVERYONE FROM KING HARALD TO SNOWPLOW KING OVERAASEN AS WE KNOW IT IS GETTING NORWAY A LOT OF ATTENTION SAYS THOR OVERAASEN IN HIS CASE ALL THE WAY TO CHINA WHICH HAS JUST ORDERED A BATCH OF PLOWS THE OLYMPICS ARE ALSO THE WORLD'S BEST WEAPON FOR CONQUERING THE TOURISM MARKET WHICH HAS GEORG KAMFORD DROOLING IN ANTICIPATION A VISITING PROFESSOR AT THE UNIVERSITY OF MASSACHUSETTS WHEN LILLEHAMMER WAS AWARDED THE OLYMPICS MR. KAMFORD RETURNED HOME WITH DISNEYESQUE PLANS TO TURN THE REGION INTO A TOURIST MECCA HE IS TALKING AMUSEMENT PARKS NATURE BASED THEME PARKS ECO TOURISM AND THERE IS STILL THE BIG TROLL IN FACT THE WHOLE OLYMPIC REGION IS BEING PACKAGED UNDER THE NAME TROLL PARK THIS ATTITUDE IF IT STICKS MAY BE THE MOST VALUABLE LEGACY OF THE OLYMPICS WE'RE VERY OLD FASHIONED WE'RE TAUGHT TO STAND BEHIND AND NOT SAY THINGS OUT FRONT WE'RE LEARNING A NEW CULTURE SAYS ANNIKI EJINDAR A TOUR GUIDE IN HAMAR'S VIKING SHIP HALL SHE IS CATCHING ON FAST QUOTE WE'RE PROUD OF OUR HALL IT HAS PLACED HAMAR ON THE MAP OF THE WHOLE WORLD IN LILLEHAMMER WHERE THE BIGGEST RISK MOST PEOPLE TAKE IS STRAPPING ON SKIS THE RESIDENTS ARE GETTING POSITIVELY ADVENTUROUS OWNERS OF FURNITURE STORES AND JEANS SHOPS ARE CONVERTING THEIR ESTABLISHMENTS INTO BARS AND RESTAURANTS TO CAPITALIZE ON THE WAVE OF FREE SPENDING VISITORS EVEN IF THEY FAIL THEY LEARN SOMETHING SAYS OLAV SPILLING RESEARCH DIRECTOR AT THE EASTERN NORWAY RESEARCH INSTITUTE THE OLYMPICS IS A PROCESS OF LEARNING COMPETENCE PEOPLE SEE NEW WAYS OF THINKING NEW ROLE MODELS NEW OPPORTUNITIES THERE MUST BE SOMETHING LASTING FROM THIS LIKE LILLEHAMMER'S PLACE IN THE TWENTY FIRST CENTURY NORWAY ISN'T WHAT IT WAS TWENTY YEARS AGO WE CAN SIT UP IN THE MOUNTAINS AND WATCH C. N. N. AND SEE WHAT HAPPENS IN ROMANIA AS IT HAPPENS QUOTE SAYS RANDI DEY OLYMPIC HOSPITALITY COORDINATOR FOR OPPLAND COUNTY WE HAVE TO MAKE THE PEOPLE HERE AWARE THAT THEY ARE ALL HOSTS WHICH IS WHAT THE SMILE SHAPING GIZMO WAS ALL ABOUT A LIGHT HEARTED MOTIVATIONAL MESSAGE TO REMIND THE LOCALS TO BE FRIENDLY TO THE VISITORS SO THAT ONE DAY THEY WILL COME BACK AND SPEND MORE MONEY BUT THE OLYMPICS CAN'T CHANGE EVERYTHING OVERNIGHT WHEN WORD LEAKED THAT LOOC PLANNED TO DISTRIBUTE ONE HUNDRED THOUSAND OF THE GIZMOS THE GOOD BUT CONSERVATIVE FOLKS OF THE VALLEY REACTED WITH A DECIDED FROWN THE PROJECT WAS PUT ON ICE PEOPLE HERE ACTUALLY THOUGHT THEY WOULD HAVE TO USE THEM MAYBE WEAR THEM TO BED AT NIGHT AND THEY COMPLAINED THAT WE WERE SPENDING TAX MONEY FOR SUCH THINGS SAYS MS. DEY THEY DIDN'T GET THE JOKE CO STEEL INCORPORATED SAID IT COMPLETED A ONE HUNDRED MILLION U. S. DOLLAR PRIVATE PLACEMENT OF TEN YEAR NOTES WITH A U. S. FINANCIAL INSTITUTION PROCEEDS WILL BE USED TO FUND A MINIMILL THAT CO STEEL IS BUILDING IN KENTUCKY UNDER A JOINT VENTURE CO STEEL IS A TORONTO STEEL PRODUCER THE TOP EXECUTIVE OF A LEADING JAPANESE OIL REFINER WITH CLOSE TIES TO TWO AMERICAN OIL GIANTS IS RESIGNING IN AN APPARENT CLASH BETWEEN THE TWO NATIONS' CORPORATE CULTURES TONEN CORPORATION FIFTY PERCENT OF WHICH IS OWNED BY EXXON CORPORATION AND MOBIL CORPORATION SAID FRIDAY THAT COMPANY PRESIDENT NOBUYUKI NAKAHARA WOULD LEAVE OFFICE ON MARCH THIRTIETH TONEN OFFICIALS SAID MR. NAKAHARA WHO OVERSAW TONEN'S GROWTH AS A TECHNOLOGICALLY ADVANCED AND FINANCIALLY CONSERVATIVE REFINER WAS LEAVING BECAUSE HE ALREADY HAD BEEN PRESIDENT FOR EIGHT YEARS ACCORDING TO JAPANESE PRESS REPORTS INDUSTRY OBSERVERS HOWEVER WIDELY BELIEVE MR. NAKAHARA A THIRTY FOUR YEAR COMPANY VETERAN WHOSE FATHER WAS ONE OF TONEN'S ORIGINAL MANAGING DIRECTORS WAS OUSTED AS PART OF A LONGSTANDING CAMPAIGN BY EXXON AND MOBIL FOR MORE SAY IN THE MANAGEMENT OF TONEN FOR YEARS THE TWO U. S. COMPANIES HAVE PRESSED FOR A GREATER RETURN ON THEIR INVESTMENT INCLUDING A HIGHER DIVIDEND PAY OUT ON THEIR SHARES NEITHER MR. NAKAHARA NOR EXECUTIVES OF THE U. S. COMPANIES WERE AVAILABLE FOR COMMENT WILLOW B. SHIRE A CORPORATE VICE PRESIDENT AT DIGITAL EQUIPMENT CORPORATION WILL RESIGN AT THE END OF MONTH ACCORDING TO COMPANY EXECUTIVES THE COMPUTER MAKER DIDN'T ANNOUNCE MS. SHIRE'S DECISION TO RESIGN WHICH INSIDERS SAID CAME LAST MONTH FOLLOWING A REORGANIZATION THAT CHANGED HER RESPONSIBILITIES SHE IS A SIXTEEN YEAR VETERAN OF THE COMPANY AND HAD BEEN CHIEF OF DIGITAL'S HEALTH CARE BUSINESS UNIT REPORTING TO DIGITAL'S CHIEF EXECUTIVE OFFICER ROBERT PALMER THE FORTY FIVE YEAR OLD EXECUTIVE ONE OF DIGITAL'S TOP RANKING FEMALE OFFICIALS WAS PICTURED ON THE COVER OF FORTUNE MAGAZINE LAST YEAR IN AN ARTICLE ABOUT QUOTE MANAGING AMID CHAOS QUOTE SHE CANDIDLY DESCRIBED MORALE AS VERY LOW PEOPLE ARE TIRED FRUSTRATED AND FRIGHTENED A DIGITAL SPOKESMAN SAID THAT HER DEPARTURE HAD NOTHING TO DO WITH HER PUBLIC COMMENTS AND NOTED HER LONG RECORD OF SERVICE TO THE COMPANY SHE'S RESIGNING TO PURSUE OTHER BUSINESS INTERESTS THE SPOKESMAN SAID MS. SHIRE SAID FRIDAY THAT HER DEPARTURE WASN'T RELATED TO ORGANIZATIONAL CHANGES AND THAT SHE EXPECTS TO TAKE A POSITION SOON WORKING ON HEALTH CARE REFORM ISSUES STEEL PLATE PRODUCERS CITING RISING DEMAND LAST WEEK ANNOUNCED PRICE INCREASES OF TWO PERCENT TO FOUR PERCENT FOR SHIPMENTS BEGINNING IN EARLY APRIL THE INCREASES WERE LED BY U. S. X. CORPORATION'S U. S. STEEL UNIT BETHLEHEM STEEL CORPORATION AND LUKENS INCORPORATED AMONG OTHER PRODUCERS FOLLOWED OREGON STEEL MILLS INCORPORATED SAID IT WOULD MATCH THE INCREASE IN MARKETS WHERE IT COMPETES WITH THOSE PRODUCERS QUOTE WE THINK THERE IS SUFFICIENT STRENGTH IN THE MARKET FOR THIS ONE TO STICK QUOTE SAID A U. S. STEEL SPOKESMAN BETHLEHEM STEEL SAID THE MOVE WAS TO PARTIALLY RESTORE FAIR VALUE TO PLATE PRODUCTS I'M SURPRISED THE PRICE INCREASE HASN'T HAPPENED BEFORE NOW SAID CHARLES A. BRADFORD AN ANALYST WITH U. B. S. SECURITIES DEMAND IS CLIMBING AND U. S. MARKETS ARE TIGHTENING IN PART BECAUSE GENEVA STEEL COMPANY IS REVAMPING ITS OPERATIONS WHICH IS KEEPING IT OUT OF MANY SECTORS OF THE PLATE MARKET GENEVA'S PROJECT IS SCHEDULED FOR COMPLETION IN MARCH STEEL PLATE IS USED IN BRIDGES POLLUTION CONTROL SYSTEMS PRESSURE VESSELS SHIPS AND CONSTRUCTION EQUIPMENT MOM AND POP MAY NOT REALIZE THAT THEIR HIGH YIELD JUNK BOND MUTUAL FUND IS INVESTING NOT ONLY IN DONALD TRUMP'S CASINOS BUT ALSO IN ARGENTINA IT WAS A GRAND IDEA IN NINETEEN NINETY THREE WHEN DEVELOPING COUNTRY DEBT HELPED TO TURBO CHARGE SOME JUNK FUNDS' TOTAL RETURNS WHICH AVERAGED TWENTY PERCENT OVERALL THAT SUCCESS HAS ENTICED SEVERAL OTHER JUNK FUNDS TO STRAY BEYOND THE FAMILIAR TURF OF U. S. CORPORATE DEBT SOME HAVE PUT TEN PERCENT TO THIRTY PERCENT OF THEIR MONEY IN THE NOTES AND BONDS OF DEVELOPING COUNTRY GOVERNMENTS AND COMPANIES THE FOREIGNERS NATURALLY ARE HAPPY TO HAVE SUCH INVESTORS CHINA ON FRIDAY ANNOUNCED PLANS FOR A ONE BILLION DOLLAR GLOBAL BOND OFFERING ITS FIRST EVER BUT THE FUTURE MAY BE LESS ROSY FOR INVESTORS BUYERS OF DEVELOPING COUNTRY DEBT WHICH MAY INCLUDE SOME UNWITTING JUNK FUND INVESTORS FACE A WHOLE NEW LIST OF WORRIES THIRD WORLD POLITICAL UPHEAVAL HIGH INFLATION A LONG HISTORY OF DEFAULTS AND CURRENCY ZIGZAGS SO THIS IS A GOOD TIME FOR INVESTORS TO CONSIDER WHETHER THE QUOTE HIGH YIELD QUOTE FUNDS THEY OWN ARE TURNING INTO FREQUENT GLOBE TROTTERS AND WHETHER THEY WANT TO GO ALONG FOR THE RIDE CURTISS BARROWS HAS A WARM SPOT IN HIS HEART FOR ARGENTINA INDONESIA HUNGARY AND THE PHILIPPINES JUST A FEW OF THE COUNTRIES THAT HELPED STEER HIS PHOENIX HIGH YIELD FUND TO A TWENTY ONE POINT FOUR EIGHT PERCENT TOTAL RETURN PRICE CHANGE PLUS INCOME FOR NINETEEN NINETY THREE IF IT WEREN'T FOR THAT TWENTY FIVE PERCENT OF MY PORTFOLIO INVESTED IN DEVELOPING NATION BONDS MY TOTAL RETURNS WOULD HAVE BEEN MEDIOCRE HE SAYS WHEN I STARTED BUYING THIS STUFF THREE YEARS AGO MY BOSSES THOUGHT I WAS NUTS NOW THEY LOVE ME MR. BARROWS ISN'T ALONE MANAGERS OF SEVERAL TOP PERFORMING JUNK FUNDS SAY THEY HAVE INCREASED OR PLAN TO INCREASE HOLDINGS OF DEVELOPING NATION NOTES AND BONDS ESPECIALLY IN LATIN AMERICA ECONOMIC REFORMS AND NEW TRADE AGREEMENTS HAVE SPARKED A REBIRTH OF INVESTING IN DEVELOPING NATIONS MANY OF WHICH WERE IN DEFAULT JUST A FEW YEARS AGO U. S. FUND MANAGERS ARE WILLING TO TAKE ON THE OFTEN MURKY POLITICAL AND ECONOMIC RISKS IN EXCHANGE FOR A SHOT AT HUGE RETURNS PRICES FOR SOME OF PERU'S DEFAULTED LOAN PAPER FOR EXAMPLE HAVE JUMPED FROM LESS THAN A DIME ON THE DOLLAR TO ABOUT SEVENTY CENTS IN THREE YEARS AMONG THE MOST POPULAR NATIONS ARE MEXICO ARGENTINA AND VENEZUELA SOME MANAGERS SUCH AS MR. BARROWS ARE LOOKING AT EASTERN EUROPEAN AND ASIAN NATIONS AS WELL NOT EVERY MANAGER IS JUMPING ON THE BANDWAGON DAVID GLANCY MANAGES THE FIDELITY SPARTAN HIGH INCOME FUND AT FIDELITY INVESTMENTS WHICH HAS AN ARMY OF RESEARCHERS FOR DEVELOPING NATION STOCKS AND BONDS YET MR. GLANCY SAYS HIS FUND WHICH HAD A NINETEEN NINETY THREE RETURN OF TWENTY ONE POINT OH FOUR PERCENT IS PROBABLY ONE OF THE MOST UNDERREPRESENTED IN EMERGING MARKETS AMONG JUNK BOND FUNDS IF PEOPLE WANT TO OWN EMERGING MARKETS FUNDS THEY CAN OWN THEM HE SAYS QUOTE PEOPLE ARE GOING TO BE REALLY TICKED OFF IF THEY LOSE MONEY IN A JUNK BOND FUND BECAUSE THE MANAGER WAS PUTTING MONEY INTO THE DEBT OF SRI LANKA QUOTE BUT MANY MANAGERS ARE ENTHUSIASTIC KEYSTONE GROUP INCORPORATED FOR EXAMPLE PLACED TWO FUNDS AMONG THE TOP TEN JUNK BOND FUNDS LAST YEAR KEYSTONE AMERICA STRATEGIC INCOME FUND UP THIRTY ONE POINT SIX NINE PERCENT AND KEYSTONE CUSTODIAN FUND SERIES B. FOUR UP TWENTY SIX POINT TWO TWO PERCENT DONALD KELLER A SENIOR PORTFOLIO MANAGER SAYS STRATEGIC INCOME HAS THIRTY PERCENT OF ITS ASSETS IN DEVELOPING NATION BONDS AND THE FIGURE COULD GO AS HIGH AS FIFTY PERCENT THIS YEAR TWO YEARS AGO IT HAD NONE AND CUSTODIAN FUND HAS TWENTY FIVE PERCENT IN DEVELOPING NATIONS OPPENHEIMER HIGH YIELD FUND WHICH HAD A TOTAL RETURN OF TWENTY ONE POINT THREE SEVEN PERCENT IN NINETEEN NINETY THREE HAS ABOUT ELEVEN PERCENT OF ASSETS IN DEVELOPING NATION BONDS SAYS PORTFOLIO MANAGER RALPH STELLMACHER PAINEWEBBER HIGH INCOME FUND A WHICH RETURNED TWENTY TWO POINT SEVEN NINE PERCENT IN NINETEEN NINETY THREE IS CONSIDERING BUYING DEVELOPING COUNTRY BONDS SAYS MANAGER EVAN STEEN BUT IS UNLIKELY TO REACH THE HOLDING LEVELS OF KEYSTONE'S HIGHFLYING FUNDS AND JIN HO MANAGER OF PUTNAM HIGH YIELD ADVANTAGE FUND WHICH HAD A TWENTY ONE POINT OH FOUR PERCENT RETURN IN NINETEEN NINETY THREE AND ALREADY OWNS A FEW DEVELOPING NATION BONDS IS CONSIDERING EVEN GREATER COMMITMENTS TO THE SECTOR THE LINE BETWEEN THE FOREIGN BOND MARKET AND U. S. JUNK BONDS IS BLURRING MR. HO OF PUTNAM SAYS THE TREND YOU WILL BE SEEING GOING FORWARD IS THE MERGING OF HIGH YIELD AND EMERGING MARKET DEBT RESOURCES SALOMON BROTHERS INCORPORATED FOR EXAMPLE IS TRYING HARD TO PERSUADE JUNK BOND MANAGERS THAT THE LEAP FROM U. S. JUNK BONDS TO FOREIGN BONDS IS MORE LIKE A BABY STEP LAST SPRING THE SECURITIES FIRM A UNIT OF SALOMON INCORPORATED SENT A MUCH TALKED ABOUT GUIDE TO ITS CLIENTS TITLED EVALUATING SOVEREIGN CREDIT RISK A HIGH YIELD ANALYSTS' GUIDE THE GUIDE DISMISSES MANAGERS' FEARS CALLING ATTENTION TO THE REVOLUTIONARY POLITICAL AND ECONOMIC CHANGES OF THE NINETEEN EIGHTIES WHICH PROVIDE AN OPPORTUNITY FOR THE HIGH YIELD INVESTOR IN THE AREA OF SOVEREIGN BONDS THE GUIDE MAKES THE ARGUMENT THAT WITH SOME TRAINING A JUNKFUND MANAGER CAN DO HIS OWN ANALYSIS OF FOREIGN GOVERNMENT BONDS JUST AS HE WOULD WITH U. S. CORPORATE JUNK BONDS MR. BARROWS HAS BEEN AMONG THE MOST RECEPTIVE SOME OF HIS COMPETITORS WONDER HOW HE CAN DO ALL THE NECESSARY ANALYSIS WITHOUT A FULLY STAFFED RESEARCH DEPARTMENT SPECIALIZING IN FOREIGN BONDS THEY WANT ME TO HAVE PILES OF CHARTS AND STUFF FROM MY OWN RESEARCH DEPARTMENT AND I THINK THAT'S A BUNCH OF BALONEY HE RETORTS I ALREADY HAVE PILES OF RESEARCH FROM THE FIRMS THAT SELL THE BONDS SUCH AS J. P. MORGAN GOLDMAN SACHS AND COMPANY AND SALOMON BROTHERS HE SAYS UNTIL RECENTLY BOND MARKETS SUCH AS MEXICO'S WERE VERY ILLIQUID DIFFICULT TO BUY AND SELL IN EASILY BECAUSE THERE WERE FEW MARKET MAKERS AND WILLING INVESTORS BUT THE SITUATION HAS CHANGED MANY MANAGERS NO LONGER FEEL COMPELLED TO TREAT MANY DEVELOPING NATIONS BONDS AS ILLIQUID CREDITS MANY U. S. FUNDS ARE LIMITED TO HOLDING JUST FIFTEEN PERCENT OF THEIR ASSETS IN SUCH CREDITS CERTAIN DEVELOPING NATION BOND MARKETS QUOTE OFFER AS MUCH AND PERHAPS IN SOME INSTANCES MORE LIQUIDITY THAN YOU CAN FIND QUOTE IN U. S. JUNK BONDS SAYS MR. STELLMACHER OF OPPENHEIMER THOMAS OLE DIAL A PORTFOLIO MANAGER AT THE RECENTLY LAUNCHED NORTHSTAR HIGH YIELD FUND SAYS THAT IF A SECURITY IS TRADED BY THREE OR MORE MARKET MAKERS HE MIGHT COUNT IT AS LIQUID BUT TRUE LIQUIDITY MEANS YOU CAN EASILY SELL A BOND INTO A BEAR MARKET MOST DEVELOPING NATION BONDS HAVE YET TO EXPERIENCE THAT STRATOSPHERIC RETURNS AREN'T NECESSARILY PROOF THAT A FUND IS BINGING ON DEVELOPING NATION DEBT DEAN WITTER'S HIGH YIELD FUND WAS WITHIN SPITTING DISTANCE OF BEING LAST YEAR'S TOP PERFORMING JUNK BOND FUND WITH A TOTAL RETURN OF THIRTY ONE POINT FIVE NINE PERCENT THE DEAN WITTER FUND DOESN'T OWN ANY DEVELOPING NATION BONDS NOR DOES IT PLAN TO BUY ANY THE FIRM SAYS CHINA AND MEXICO'S BANCO NACIONAL DE COMERCIO EXTERIOR S. N. C. EACH ARE SCHEDULED TO SELL ONE BILLION DOLLARS OF GLOBAL BONDS BY THE END OF THIS MONTH CHINA ANNOUNCED ON FRIDAY THAT IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL ONE BILLION DOLLARS OF NONCALLABLE TEN YEAR NOTES THROUGH A GROUP OF UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY THE OFFERING WILL BE CHINA'S FIRST DOLLAR DENOMINATED GLOBAL OFFERING BANCOMEXT ALSO PLANS TO SELL ONE BILLION DOLLARS OF NONCALLABLE TEN YEAR NOTES THROUGH LEAD MANAGERS GOLDMAN SACHS AND COMPANY AND MERRILL LYNCH MEANWHILE U. S. TREASURY SECURITIES TOOK ANOTHER BEATING FRIDAY AND ENDED A ROLLER COASTER WEEK LOWER BEHIND FRIDAY'S DECLINE WAS MORE ECONOMIC NEWS CASTING DOUBT ON THE BELIEF THAT THE ECONOMIC RECOVERY MIGHT HAVE BEEN LOSING STRENGTH AT THE END OF NINETEEN NINETY THREE IN FACT TRADERS SAID THERE ARE SIGNS THAT SOME OF THE ECONOMIC VIGOR HAS BEEN SPILLING OVER INTO NINETEEN NINETY FOUR STRONG ECONOMIC INDICATORS ARE GENERALLY BEARISH FOR THE BOND MARKET BECAUSE THEY POSE THE THREAT OF HIGHER INFLATION WHICH ERODES THE VALUE OF FIXED INCOME INVESTMENTS THE PRICE OF THE BENCHMARK THIRTY YEAR TREASURY BOND DROPPED ONE HALF POINT OR FIVE DOLLARS FOR A BOND WITH A FACE VALUE OF ONE THOUSAND DOLLARS TO NINETY NINE AND THIRTEEN THIRTY SECONDS THE YIELD CLIMBED TO SIX POINT TWO NINE PERCENT FROM SIX POINT TWO FIVE PERCENT ON THURSDAY THE BOND MARKET'S TROUBLES BEGAN IN EARLY TRADING AFTER THE FEDERAL RESERVE BOARD REPORTED THAT INDUSTRIAL PRODUCTION JUMPED ZERO POINT SEVEN PERCENT IN DECEMBER TRADERS HAD ANTICIPATED A SMALLER RISE OF ABOUT ZERO POINT FOUR PERCENT AND THE NEWS IMMEDIATELY SENT PRICES LOWER THEN AT MID MORNING THE MARKET TOOK ANOTHER HIT FROM NEWS OF A GREATER THAN EXPECTED INCREASE IN CONSUMER CONFIDENCE THE UNIVERSITY OF MICHIGAN'S CONFIDENCE INDEX WAS SAID TO HAVE RISEN TO NINETY FIVE POINT EIGHT FOR THE FIRST HALF OF JANUARY FROM EIGHTY EIGHT POINT TWO IN DECEMBER THE REPORT IS MADE AVAILABLE ONLY TO SUBSCRIBERS AT THE SAME TIME BUSINESS INVENTORIES WERE REPORTED UP ZERO POINT SIX PERCENT IN NOVEMBER THE DATA ONLY SERVED TO DEEPEN THE BEARISH SENTIMENT THAT WAS SPARKED THURSDAY BY A LARGER THAN EXPECTED RISE IN RETAIL SALES AND ALL THE DATA TAKEN TOGETHER HAVE PROMPTED ENOUGH INVESTOR SELLING TO ERODE MUCH OF THE IMPROVEMENT IN BOND PRICES FOLLOWING WEEK'S EMPLOYMENT REPORT IT LOOKS LIKE WE CAME OUT OF THE FOURTH QUARTER STRONGER THAN THE MARKET HAD THOUGHT SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES IN RESPONSE TO THAT SHIFT IN SENTIMENT THERE HAS BEEN RETAIL SELLING MR. BRIGGS SAID THIS WEEK WILL BE A SHORTENED WEEK FOR CASH BOND TRADING THE MARKET IS CLOSED TODAY IN OBSERVANCE OF MARTIN LUTHER KING DAY SINCE ASIAN SHARE PRICES TUMBLED ALMOST TWO WEEKS AGO THE INVESTOR HOTLINE AT FIDELITY INVESTMENTS MANAGEMENT LIMITED'S OFFICE HERE HAS BEEN GETTING FAR MORE CALLS THAN USUAL FEW CUSTOMERS WANT TO SELL MUTUAL FUND SHARES SAYS RICHARD WASTCOAT REGIONAL MARKETING DIRECTOR FOR THE FUND MANAGEMENT FIRM RATHER HE SAYS MOST QUOTE ARE CALLING TO ASK WHAT EVERYONE ELSE IS DOING QUOTE FIDELITY'S ANSWER ON THE PHONE AND IN A NEWSPAPER ADVERTISEMENT HONG KONG'S WEAKNESS MAY PRESENT A BUYING OPPORTUNITY AS IF TO PROVE THE POINT STOCKS REBOUNDED FIVE POINT NINE PERCENT FRIDAY SIMILAR BOUNCES BROUGHT THE MAIN INDEXES BACK UP AT THE END OF A LOSING WEEK STOCKS CLIMBED EIGHT POINT ONE PERCENT IN MALAYSIA FIVE POINT TWO PERCENT IN THAILAND AND FOUR POINT NINE PERCENT IN SINGAPORE MOST ANALYSTS AGREED WITH FIDELITY THAT ASIA'S CONTINUED ECONOMIC STRENGTH WOULD FOSTER A SUSTAINED REBOUND SOMETIME BUT IT IS TOUGHER TO KNOW IF THAT BOUNCE HAS ALREADY BEGUN AND HOW TO RIDE THE RECOVERY WHEN IT DOES COME SOUTHEAST ASIA'S MARKETS HAVE CORRECTED THEIR SIMILAR RALLIES IN SUBTLY DIFFERENT WAYS TARGETING REBOUND PLAYS BY DISSECTING EACH MARKET'S OWN CORRECTION MEANS IGNORING MANY ANALYSTS' ATTEMPTS TO EXPLAIN ALL THE CORRECTIONS IN ONE BLOW BY SIMPLY REVERSING NINETEEN NINETY THREE'S LOGIC CONVENTIONAL WISDOM ARGUES THAT STOCKS FELL ACROSS THE REGION BECAUSE A TIDE OF U. S. MONEY WHICH HAD LIFTED THEM IN LATE NINETEEN NINETY THREE IS BEING SUCKED BACK INTO THE DEVELOPED WORLD BUT SOME HONG KONG BASED ANALYSTS ADMIT U. S. CLIENTS AREN'T SELLING HEAVILY THESE DAYS OTHER ANALYSTS SAID THE REGION'S MASS CORRECTION HAS BEEN TECHNICAL IMPLYING THAT THE MARKETS ARE RETURNING TO HISTORICAL BEHAVIOR PATTERNS AFTER SOARING ABOVE NORMAL LEVELS IN RECENT MONTHS BUT ONE FUND MANAGER SAID U. S. AND JAPANESE INVESTORS' SUDDEN POWER IN ASIAN MARKETS MAKES TRADITIONAL BEHAVIOR IRRELEVANT IN CONSIDERING REASONS FOR EACH MARKET'S DROP THOUGH THE SEEDS OF ASIA'S IMPENDING REBOUNDS BECOME CLEARER KUALA LUMPUR'S DECLINE FOR EXAMPLE HAD LITTLE TO DO WITH FOREIGN INVESTORS RATHER IT WAS TRIGGERED LARGELY BY A MESSAGE THE MALAYSIAN GOVERNMENT WAS SAID TO BE SENDING SPECULATORS EARLY THIS MONTH AS AN ELECTION IS EXPECTED THIS YEAR SOME ANALYSTS SUGGESTED THE RULING PARTY WANTS AN INEVITABLE STOCK MARKET CORRECTION OUT OF THE WAY FIRST SO MALAYSIA'S TOP OFFICIALS WARNED THAT STOCKS HAD REACHED UNREASONABLY HIGH LEVELS AN INFLUENTIAL FORMER FINANCE MINISTER SAID HE HAD MOSTLY BAILED OUT OF STOCKS AND THE CENTRAL BANK ACTED TO SOP UP CASH FROM THE FINANCIAL SYSTEM SURE ENOUGH THE KUALA LUMPUR INDEX TUMBLED TWENTY ONE PERCENT BETWEEN JANUARY FIFTH AND LAST THURSDAY AND MANY SPECULATORS SOLD LOSERS TO REPAY MARGIN LOANS IN THE THAI MARKET THE RECENT ROUT ALSO HAD MORE TO DO WITH LOCAL SPECULATORS THAN FOREIGN INVESTORS AFTER BANGKOK'S INDEX STARTED SLIDING ON FEARS THAT FOREIGN INVESTORS WERE CASHING OUT OF ASIA BROKERS SAID CLIENTS FELT FORCED TO REPAY MARGIN LOANS WHILE THEY COULD SELL STOCKS AT A PROFIT GROWING FEARS THAT SPECULATORS MIGHT DEFAULT ON MARGIN LOANS IN TURN WEAKENED FINANCIAL SHARES THAT HAD LED THE MARKET IN LATE NINETEEN NINETY THREE NOW BANGKOK'S STRONGEST SIGNS OF A REBOUND COME FROM RESILIENT DEMAND FOR MUTUAL FUND SHARES THE CONVENTIONAL WISDOM ABOUT ASIA THAT FOREIGN INVESTORS SPARKED TUMBLES AND WILL UNLEASH REBOUNDS APPLIES MOST READILY IN HONG KONG CONSIDERED THE EASIEST MARKET OUTSIDE JAPAN FOR FOREIGN PARTICIPATION ESPECIALLY BY INSTITUTIONS THAT CAN JUMP IN AND OUT OF STOCKS QUICKLY WHEN OPPORTUNITIES POP UP ELSEWHERE HONG KONG OFTEN GETS HIT HARD TOKYO STOCKS RALLIED TWO POINT ONE PERCENT FRIDAY ON EXPECTATIONS OF JAPANESE POLITICAL STABILITY AND A NEW ECONOMIC STIMULUS LONDON SHARES ALSO SURGED ONE POINT TWO PERCENT IN A SHORT COVERING SCRAMBLE ON THE FINAL DAY OF A TRADING ACCOUNT BUT FRANKFURT PRICES TUMBLED ONE POINT ONE PERCENT IN A CONTINUING CORRECTION WORLD WIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED THIRTEEN POINT TWO FOUR UP ONE POINT FOUR TWO OR ONE POINT TWO SEVEN PERCENT REFLECTING INCREASES IN MARKETS IN ALL REGIONS PLANTATION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT TWO HUNDRED FORTY EIGHT POINT NINE THREE UP THIRTY EIGHT POINT FOUR TWO OR EIGHTEEN POINT TWO FIVE PERCENT WITH UNITED PLANTATIONS OF MALAYSIA POSTING A THIRTY POINT SIX ONE PERCENT GAIN IN ITS LOCAL CURRENCY ADVERTISING STOCKS TRAILED AT ONE HUNDRED THIRTY TWO POINT TWO FIVE DOWN ZERO POINT FOUR EIGHT OR ZERO POINT THREE SIX PERCENT WITH INTERPUBLIC GROUP OF THE U. S. SLIDING ONE POINT NINE TWO PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX JUMPED THREE HUNDRED NINETY SIX POINT FOUR FOUR TO EIGHTEEN THOUSAND NINE HUNDRED SEVENTY THREE POINT SEVEN OH AFTER EDGING ABOVE NINETEEN THOUSAND IN INTRADAY TRADING FOR THE FIRST TIME SINCE EARLY NOVEMBER IN TRADING MONDAY THE NIKKEI INDEX FELL TWO HUNDRED SEVENTEEN POINT SIX TWO POINTS TO CLOSE THE MORNING SESSION AT EIGHTEEN THOUSAND SEVEN HUNDRED FIFTY SIX POINT OH EIGHT FRIDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT FOUR HUNDRED FIFTY MILLION SHARES UP FROM FOUR HUNDRED TWENTY TWO POINT FOUR MILLION SHARES A DAY EARLIER BUT THIRTY SIX PERCENT OF THE TURNOVER CAME IN THE FIRST HOUR MUCH OF IT TIED TO SETTLEMENT OF NIKKEI OPTIONS FOR JANUARY GAINERS SWAMPED LOSERS EIGHT HUNDRED TWENTY EIGHT TO TWO HUNDRED NINETEEN THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES SURGED TWENTY TWO POINT ONE FIVE OR ONE POINT FIVE PERCENT TO ONE THOUSAND FIVE HUNDRED TWENTY FIVE POINT SIX TWO FOREIGN INVESTORS REMAINED STRONG BUYERS AND INDIVIDUALS MADE A RETURN APPEARANCE ON INCREASING CERTAINTY THAT POLITICAL REFORM LEGISLATION WOULD BE PASSED BY JAPAN'S DIET OR PARLIAMENT SMOOTHING ECONOMIC STIMULUS MEASURES IN LONDON THE FINANCIAL TIMES STOCK INDEX ONE HUNDRED SHARE INDEX SURGED FORTY POINT SIX POINTS TO THREE THOUSAND FOUR HUNDRED POINT SIX THE F. T. THIRTY STOCK INDEX RALLIED THIRTY FOUR POINT SEVEN POINTS OR ONE POINT THREE PERCENT TO TWO THOUSAND SIX HUNDRED TWELVE POINT ONE VOLUME WAS ONE POINT OH TWO BILLION SHARES UP FROM EIGHT HUNDRED NINETY SIX POINT TWO MILLION SHARES A DAY EARLIER MANY INVESTORS SCRAMBLED TO BUY STOCKS SOLD SHORT BORROWED STOCK SOLD IN HOPES OF PROFITING BY REPLACING THE POSITIONS AT A LOWER PRICE AND DUE FOR DELIVERY ON THE TRADING ACCOUNT'S FINAL DAY LATER THE GERMAN CENTRAL BANK CHIEF SAID INTEREST RATES SHOULDN'T STAY AT CURRENT LEVELS ANY LONGER THAN NECESSARY HELPING TO SPUR LONDON STOCKS BROADLY IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX SANK TWENTY TWO POINT EIGHT FOUR POINTS TO TWO THOUSAND ONE HUNDRED FORTY ONE POINT EIGHT TWO BRINGING LAST WEEK'S LOSS TO THREE POINT TWO PERCENT THE GAUGE HAS LOST ONE HUNDRED TWENTY SIX POINT ONE SIX POINTS OR FIVE POINT SIX PERCENT FROM A RECORD HIGH SET JANUARY THIRD INVESTORS WERE DISAPPOINTED ABOUT EARNINGS PROSPECTS AND OTHER CORPORATE DEVELOPMENTS SWISS AND U. S. INVESTORS HAVE BEEN NET SELLERS THIS YEAR IN PARIS AFTER A TWO DAY PROFIT TAKING LOSS OF THREE POINT FIVE PERCENT STOCKS ROSE IN AMSTERDAM PRICES RECOVERED SMARTLY AFTER LAST WEEK'S DECLINES AROUSED BARGAIN HUNTING AND SHORT COVERING IN MADRID STOCKS CLIMBED TO A RECORD BOOSTED BY RECOVERIES IN OTHER EUROPEAN MARKETS EARLY STRENGTH ON WALL STREET AND BUYING BY SPANISH AND U. S. INSTITUTIONAL INVESTORS IN STOCKHOLM PRICES ALSO ADVANCED TO A RECORD LIFTED BY RALLIES IN THE AUTO AND FORESTRY SECTORS INSTITUTIONAL DEMAND WAS HEAVY AMID SPECULATION ABOUT SWEDISH INTEREST RATE CUTS IN SYDNEY SHARES SURGED ONE POINT FOUR PERCENT AS INVESTORS RETURNED TO THE MARKET IN FORCE AFTER SEVERAL DAYS OF PROFIT TAKING BUT IN SEOUL STOCKS LOST TWO POINT TWO PERCENT AFTER THE GOVERNMENT UNVEILED STEPS TO COOL WHAT IT TERMED AN OVERHEATED MARKET URGING INSTITUTIONS TO REFRAIN FROM BUYING AND REQUIRING THEM TO PAY CASH DEPOSITS AND ALLOWING SHORT SALES IN MEXICO CITY EQUITIES TUMBLED ONE POINT NINE PERCENT ON PROFIT TAKING AS REBEL PEASANTS' CHALLENGE TO THE GOVERNMENT REMAINED UNSETTLED 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END A FEDERAL GRAND JURY INDICTED SOUTHMOUNTAIN COAL COMPANY AND TWO COMPANY OFFICIALS IN CONNECTION WITH AN ACCIDENT THAT KILLED EIGHT MINERS IN LATE NINETEEN NINETY TWO THE COMPANY BASED IN NORTON VIRGINIA WAS CHARGED WITH SIX FELONY COUNTS AND ELEVEN MISDEMEANORS INCLUDING VIOLATIONS OF VENTILATION STANDARDS AND FAILURE TO CONDUCT SAFETY CHECKS IN ADDITION THE COMPANY IS ACCUSED OF FALSIFYING RECORDS IF CONVICTED ON ALL COUNTS THE COMPANY COULD FACE AS MUCH AS EIGHT POINT FIVE MILLION DOLLARS IN CRIMINAL PENALTIES LAST YEAR THE FEDERAL MINE SAFETY AND HEALTH ADMINISTRATION FINED THE COMPANY FOUR HUNDRED THIRTY NINE THOUSAND ONE HUNDRED SEVENTY TWO DOLLARS THE MAXIMUM POSSIBLE FOR THE EIGHT VIOLATIONS UNCOVERED AFTER THE EXPLOSION IN ITS REPORT IN MAY ON THE ACCIDENT THE AGENCY'S INVESTIGATORS FOUND THAT INSUFFICIENT VENTILATION IN THE MINE LED TO A BUILDUP OF METHANE GAS COMPANY OFFICIALS FAILED TO DETECT THE BUILDUP BECAUSE OF INADEQUATE EXAMINATIONS THE REPORT SAID AND A CIGARETTE LIGHTER SET OFF THE EXPLOSION SOUTHMOUNTAIN'S LAWYERS COULDN'T BE REACHED TO COMMENT THE FORMER PRESIDENT OF WESTERN SAVINGS AND LOAN ASSOCIATION A DEFUNCT ARIZONA THRIFT ASSOCIATED WITH CONVICTED FINANCIER CHARLES W. KNAPP WAS INDICTED ON CHARGES OF FRAUD CONSPIRACY MISAPPLICATION OF FUNDS AND MAKING FALSE STATEMENTS TO REGULATORS THE TWENTY FIVE COUNT INDICTMENT OF GARY DRIGGS BY A FEDERAL GRAND JURY HERE LAST WEEK CAME MORE THAN TWO YEARS AFTER HE AND ABOUT FIFTY OTHER OFFICERS AND ASSOCIATES OF THE THRIFT WERE NAMED IN A CIVIL LAWSUIT FILED BY THE GOVERNMENT SEEKING MORE THAN ONE BILLION DOLLARS IN DAMAGES ONCE ARIZONA'S SECOND LARGEST THRIFT WESTERN SAVINGS WAS SEIZED BY REGULATORS IN JUNE NINETEEN EIGHTY NINE AT AN ESTIMATED ONE POINT SEVEN BILLION DOLLAR LOSS TO TAXPAYERS MICHAEL HAWKINS AN ATTORNEY FOR MR. DRIGGS SAID THE CRIMINAL CHARGES QUOTE ARE A REHASH OF THE CIVIL SUIT QUOTE THAT'S STILL PENDING ADDING THAT HIS CLIENT INTENDS TO FIGHT THE INDICTMENT ITS FINANCES ARE IN SHAMBLES LOCAL SUBSCRIBERS ARE FURIOUS BOARD MEMBERS ARE EMBARRASSED AND THE STATION MANAGEMENT IS ON THE DEFENSIVE WQED THE FIRST COMMUNITY SPONSORED EDUCATIONAL TELEVISION STATION IN AMERICA HAS SUFFERED FROM PUBLIC T. V.'S MODERN AILMENTS DWINDLING CORPORATE AND GOVERNMENT FUNDING AMID GROWING COMPETITION FOR VIEWERS AND SPONSORS FROM THE CABLE NETWORKS BUT WQED'S GREATEST PROBLEM HAS BEEN INSOUCIANCE FOR ITS STATION EXECUTIVES ACCUSTOMED TO FLUSH TIMES MISSED THE INDUSTRY DANGER SIGNS IN SOME CASES AND IGNORED THEM IN OTHERS THEY SPENT LAVISHLY AND WHEN THEIR STRONG CORPORATE FUNDING DRIED UP THEY FAILED TO SCALE BACK AND LIVE WITHIN THEIR MEANS AS RECENTLY AS LAST YEAR THE STATION RAN MYRIAD TELETHONS EXHORTING VIEWERS TO SEND IN MONEY WHILE ITS CHIEF EXECUTIVES COLLECTED HANDSOME SALARY AND BENEFIT PACKAGES MEANWHILE WQED HAD RACKED UP A FOUR POINT EIGHT MILLION DOLLAR DEFICIT AND HAD NO PROSPECTS OF SIGNIFICANT NEW SPONSORSHIP LLOYD KAISER THE STATION'S CHIEF EXECUTIVE WHO RETIRED IN JUNE SAYS HIS TWENTY THREE YEAR REGIME AT WQED ISN'T AT FAULT QUOTE THE PRECARIOUS POSITION OF PUBLIC T. V. NATIONALLY SPEAKS FOR ITSELF QUOTE THESE DAYS MANY VIEWERS CAN TUNE IN TO CABLE NETWORKS LIKE THE DISCOVERY CHANNEL TO SEE THE KIND OF PROGRAMMING ONCE EXCLUSIVE TO PUBLIC TELEVISION IN ADDITION LOCAL COMPANIES THAT PUT UP MONEY TO SPONSOR NATIONALLY PRODUCED PUBLIC T. V. SHOWS SUCH AS MACNEIL SLASH LEHRER NEWSHOUR ON LOCAL P. B. S. STATIONS HAVE FOUND SUCH PLUGS TO BE COSTLY IT'S A VERY EXPENSIVE FORM OF ADVERTISING SAYS KARL SMREKAR FINANCIAL ADVISER FOR ALLEGHENY FINANCIAL GROUP WHICH NO LONGER SPONSORS THE SHOWING OF WALL STREET WEEK ON WQED IT COST ABOUT THIRTEEN THOUSAND DOLLARS A YEAR TO SPONSOR THE FRIDAY NIGHT SHOW AND THE FIRM NOW ADVERTISES ON RADIO FOR ABOUT HALF THAT AMOUNT MR. SMREKAR SAYS INDEED PUBLIC STATIONS ACROSS THE COUNTRY ARE FINDING BUSINESS AND VIEWER SUPPORT ISN'T TAKING UP THE SLACK AS BIG CORPORATE UNDERWRITERS AND STATE AND LOCAL GOVERNMENTS RE ALLOCATE MONEY THEY USED TO GIVE TO PUBLIC T. V. AS A RESULT THEY ALL TAKE TURNS RUNNING DEFICITS SAYS STEVE BEHRENS EDITOR OF CURRENT THE PUBLIC BROADCASTING NEWS JOURNAL STATIONS NATIONWIDE HAVE BEEN CUTTING BACK THEIR STAFFS AND THEIR EXECUTIVE SALARIES AS THEY GRAPPLE WITH THE HARSH NEW REALITY FOR EXAMPLE KCET IN LOS ANGELES HAD ROUNDS OF LAYOFFS IN NINETEEN NINETY ONE AND NINETEEN NINETY THREE AS DID KQED IN SAN FRANCISCO AND W. N. E. T. IN NEW YORK W. N. E. T. REDUCED ITS CHIEF EXECUTIVE'S SALARY FROM TWO HUNDRED NINETY THOUSAND DOLLARS TO ABOUT TWO HUNDRED FORTY SIX THOUSAND DOLLARS IN SALARY AND ALLOWANCES BUT IN WQED'S CASE THOMAS ALLEN A FORMER BOARD MEMBER WHO RETIRED ABOUT THREE YEARS AGO SAYS I'M NOT SURE HOW MUCH ANY BOARD MEMBER EVEN THE OFFICERS WAS AWARE OF THE NUTS AND BOLTS OF WHAT WAS GOING ON OVER THERE IT WAS A BIG OPERATION WITH A BIG BOARD AND AUTHORITY GETS A LITTLE BIT FRAGMENTED WHAT WAS GOING ON WAS THIS WQED LOST GULF OIL ITS PRINCIPAL CORPORATE SPONSOR AND NATIONAL GEOGRAPHIC ITS MAIN CO PRODUCER AND HAD NO PROSPECTS TO REPLACE THEM NEVERTHELESS THE STATION CONTINUED TO GIVE ITS TOP FOUR EXECUTIVES HANDSOME SALARIES AND BENEFIT PACKAGES WHICH IN THE FISCAL YEAR ENDED JUNE THIRTIETH NINETEEN NINETY TWO RANGED FROM TWO HUNDRED FIVE THOUSAND DOLLARS TO THREE HUNDRED TWENTY FIVE THOUSAND NINE HUNDRED NINETY FIVE DOLLARS THE LATEST NUMBERS AVAILABLE THE PACKAGES INCLUDED ANNUAL CAR ALLOWANCES RANGING FROM FIFTEEN THOUSAND DOLLARS TO TWENTY TWO THOUSAND DOLLARS AND THE EXECUTIVES WERE ABLE TO CASH IN INSURANCE POLICIES FOR AMOUNTS RANGING FROM THIRTY FOUR THOUSAND DOLLARS TO SIXTY EIGHT THOUSAND ONE HUNDRED NINETY ONE DOLLARS THE POLICIES WERE BOUGHT SOME YEARS BEFORE WITHOUT BOARD KNOWLEDGE SAYS ELSIE HILLMAN WQED BOARD CHAIRWOMAN WHO IS A PITTSBURGH CIVIC LEADER NEWS OF THESE PAY AND ACCOUNTING ANOMALIES BEGAN TO SURFACE IN PITTSBURGH CREATING A PUBLIC RELATIONS STORM IN A COMMUNITY GROWN ACCUSTOMED TO STEADY TELEVISED APPEALS FOR DONATIONS TO THE HOME OF QUOTE MISTER ROGERS' NEIGHBORHOOD QUOTE THE BOARD WAS EMBARRASSED IT WASN'T THAT THE WOOL WAS PULLED OVER OUR EYES BUT THAT I WASN'T LOOKING AT THE RIGHT THINGS SAYS MRS. HILLMAN ONCE LOYAL WQED VIEWERS FELT BETRAYED AND SOME HAVE CUT DONATIONS I PUT IT IN THE CONTEXT OF PEOPLE AT THE UNITED WAY AND THE BLOOD BANK USING THEIR POSITION FOR PERSONAL GAIN WHEN THEY'RE SUPPOSED TO BE DOING GOD'S WORK LAMENTS HARRY M. CORBETT A LONGTIME WQED SUBSCRIBER WHO NO LONGER PLEDGES ONE HUNDRED FIFTY DOLLARS A YEAR PLEDGES AND DONATIONS GAVE WQED ITS START FORTY YEARS AGO WHEN SIXTY THOUSAND PITTSBURGHERS CONTRIBUTED TWO DOLLARS EACH FOR COMMUNITY TELEVISION WQED IS AMONG THE HANDFUL OF PUBLIC T. V. STATIONS THAT PRODUCE PROGRAMS SHOWN NATIONWIDE FOR THE PUBLIC BROADCASTING SERVICE THE CORPORATION FOR PUBLIC BROADCASTING'S PROGRAMMING ARM THE STATION NOT ONLY LAUNCHED LEGENDARY BROADCASTER FRED ROGERS AND HIS ACCLAIMED CHILDREN'S SERIES BUT TEAMED UP WITH NATIONAL GEOGRAPHIC FOR FIFTEEN YEARS OF SPECTACULAR DOCUMENTARIES TWELVE OF WQED'S NATIONAL GEOGRAPHIC SPECIALS ARE IN THE TOP TWENTY FIVE MOST WATCHED INDIVIDUAL SHOWS EVER BROADCAST ON P. B. S. AND THE STATION'S TWENTY EIGHT EMMY AWARDS LIFTED IT TO THE SAME CONSTELLATION AS BETTER KNOWN BIGGER P. B. S. STATIONS IN BOSTON AND NEW YORK CURRENT AND FORMER STAFFERS CREDIT THE FORMER TOP EXECUTIVES MR. KAISER AND THOMAS SKINNER WITH BOTH WQED'S RISE AND FALL THE PAIR ARRIVED IN NINETEEN SEVENTY FROM PUBLIC T. V. STATION WITF IN HERSHEY PENNSYLVANIA AND BUILT WQED FROM A SMALL STATION WITH TWO MILLION DOLLARS IN ANNUAL REVENUE TO A THIRTY SIX MILLION DOLLAR OPERATION WITH T. V. CHANNELS WQED AND WQEX A CLASSICAL MUSIC RADIO STATION AND A MONTHLY CITY MAGAZINE FOR FIFTEEN YEARS WQED RODE HIGH ON SPONSORSHIP FROM GULF OIL WHICH PROVIDED AS MUCH AS THREE MILLION DOLLARS ANNUALLY FOR NATIONAL GEOGRAPHIC DOCUMENTARIES ON SUBJECTS RANGING FROM SHARKS AND GRIZZLY BEARS TO THE LIVES OF BAKA PYGMIES IN THE RAIN FOREST OF SOUTHEASTERN CAMEROON NATIONAL GEOGRAPHIC'S EXECUTIVE PRODUCER DENNIS B. KANE FORGED A FAST BOND WITH WQED'S EXECUTIVE PRODUCER MR. SKINNER TOGETHER THEY TRAVELED FROM JERUSALEM TO THE SERENGETI IN AFRICA SCOPING OUT POTENTIAL SITES AND DINING AT FINE RESTAURANTS ACCORDING TO MR. KANE BECAUSE GULF BANK ROLLED THE DOCUMENTARIES WITH MONEY UPFRONT CASH FLOW WASN'T A PROBLEM BACK IN PITTSBURGH EACH CHRISTMAS THERE WERE POINSETTIAS ON ALL THE SECRETARIES' DESKS AND FANCY PARTIES MANAGERS GATHERED EACH YEAR FOR A FEW DAYS' WORKING RETREAT AT A NEARBY SKI LODGE ACCORDING TO SOME OF THOSE WHO PARTICIPATED THINGS BEGAN TO UNRAVEL IN NINETEEN EIGHTY NINE WHEN NATIONAL GEOGRAPHIC'S MR. KANE DECIDED TO STRIKE OUT ON HIS OWN TO FORM A. B. C. KANE A SMALL DIVISION OF CAPITAL CITIES AND NATIONAL GEOGRAPHIC DECIDED TO PRODUCE ITS SHOWS IN HOUSE THOUGH WQED HAD TWO YEARS' NOTICE BEFORE ITS FINAL PRODUCTION OF THE NATIONAL GEOGRAPHIC SPECIALS IT SEEMED OBLIVIOUS TO WHAT OTHERS IN PUBLIC TELEVISION SAW BIG CORPORATE OUTLAYS FOR NATIONAL PUBLIC TELEVISION PRODUCTIONS WERE DRYING UP ACROSS THE COUNTRY WE ALL HAD ROSY COLORED GLASSES ON THINKING THINGS WOULD COME ALONG TO REPLACE NATIONAL GEOGRAPHIC ACKNOWLEDGES MRS. HILLMAN THE WQED BOARD CHAIRWOMAN BUT NOTHING DID PEOPLE WHO WORKED AT THE STATION AT THAT TIME SAY MR. SKINNER WENT INTO MOURNING AFTER LOSING NATIONAL GEOGRAPHIC AND HIS DEPUTIES SAY HE HAD DIFFICULTY ADJUSTING TO MORE MUNDANE PROGRAMMING PROSPECTS MR. SKINNER DENIES THIS SAYING HE PLUNGED INTO WORKING ON INFINITE VOYAGE A SCIENCE PROGRAM FUNDED WITH ABOUT THREE MILLION DOLLARS A YEAR FROM DIGITAL EQUIPMENT COMPANY BUT IN NINETEEN NINETY ONE AFTER FOUR SEASONS D. E. C. ANNOUNCED IT WAS GIVING THE PROGRAM A FINAL YEAR BEFORE PULLING THE PLUG WQED BEGAN EXPERIENCING DIFFICULTY RAISING MONEY FOR NEW PRODUCTIONS AND WENT AHEAD WITH PRODUCTIONS THAT WEREN'T FULLY FUNDED IT WAS LIKE WRITING A BOOK NOT KNOWING THE NUMBER OF CHAPTERS OR WHETHER THERE WOULD BE CERTAIN CHAPTERS ON CERTAIN THINGS SAYS THEODORE BOGOSIAN MR. BOGOSIAN A FORMER PRODUCER AT WQED WORKED ON THE PROGRAM QUOTE SPACE AGE QUOTE WHICH FIZZLED AFTER SIX EPISODES BY THE TIME MR. KAISER RETIRED LAST JUNE AT AGE SIXTY FIVE THE STATION WAS HANGING BY A THREAD PASSED OVER FOR THE TOP JOB MR. SKINNER QUIT SHORTLY THEREAFTER BOTH MEN RECEIVE PENSIONS OF MORE THAN ONE HUNDRED THOUSAND DOLLARS A YEAR DONALD KORB A RETIRED WESTINGHOUSE ELECTRIC CORPORATION TREASURER AND THE FORMER HEAD OF WQED'S FINANCE COMMITTEE TOOK OVER AS ACTING CHIEF EXECUTIVE OFFICER AND NOTES HE INITIALLY SPENT SEVENTY TO EIGHTY HOURS A WEEK WORKING JUST TO STABILIZE THE SITUATION HE HAS SLASHED STAFF BY TWENTY FIVE PERCENT CUT TOP SALARIES AND AMENDED PAST ACCOUNTING PRACTICES HE ACKNOWLEDGES WERE VERY SHODDY SHOCKED BY THE FERVOR OF PUBLIC OUTCRY AGAINST WQED MR. KORB ALSO TURNED OVER THE STATION'S FINANCIAL RECORDS TO J. ALAN JOHNSON A FORMER U. S. ATTORNEY TO INVESTIGATE THE STATION'S PAST PRACTICES AND DISPEL THE CLOUD THAT HANGS OVER ITS OPERATIONS A FINAL REPORT IS PENDING THE STATION SAYS ITS LATEST FINANCIAL FIGURES SHOW WQED RAISED FIVE POINT TWO MILLION DOLLARS OR ABOUT EIGHTEEN PERCENT OF ITS REVENUE FROM SUBSCRIBERS IN THE YEAR ENDED JUNE THIRTIETH NINETEEN NINETY THREE ABOUT SEVENTEEN POINT NINE MILLION DOLLARS OR SIXTY THREE PERCENT OF ITS REVENUE STEMMED LARGELY FROM GOVERNMENT SOURCES INCLUDING P. B. S. THE NATIONAL ENDOWMENT FOR THE ARTS AND FEDERAL AND STATE GRANTS ANOTHER ONE MILLION DOLLARS CAME FROM CORPORATE UNDERWRITING WHILE THE REST CAME FROM MAGAZINE AD SALES AND OTHER SOURCES WITH WQED'S CURRENT DEFICIT AND PROJECTED REVENUE OF TWENTY SIX MILLION DOLLARS FOR THE NEXT FISCAL YEAR A TURNAROUND ISN'T GOING TO BE EASY MR. KORB CONCEDES WE NEED A LOT OF SKILL AND A LITTLE BIT OF LUCK TO SURVIVE HE SAYS WQED STILL CO PRODUCES WHERE IN THE WORLD IS CARMEN SANDIEGO A POPULAR CHILDREN'S GEOGRAPHY GAME SERIES WITH W. G. B. H. IN BOSTON FRED ROGERS LONG AGO SET UP AN INDEPENDENT PRODUCTION COMPANY FOR MISTER ROGERS' NEIGHBORHOOD THOUGH HE STILL RENTS WQED STUDIO SPACE WQED PRODUCED JUST TWO PROGRAMS BROADCAST NATIONALLY LAST YEAR QUITE A COMEDOWN FROM ITS PAST GLORY DAYS WQED PRODUCED A PROGRAM ON BREAST CANCER THAT WAS UNDERWRITTEN WITH SEVEN HUNDRED FIFTY THOUSAND DOLLARS FROM AVON AND ANOTHER ON NURSES WAS SPONSORED BY A PITTSBURGH AREA HOSPITAL IT HAS PRODUCED SEVERAL NOSTALGIC AND POPULAR SHOWS ON PITTSBURGH'S HISTORY BOTH NOW AND UNDER MR. KAISER THOUGH IT HAS DONE LITTLE TO REFLECT WHAT IS HAPPENING IN THE CITY TODAY WQED IS SEARCHING FOR A PERMANENT CHIEF EXECUTIVE WHOM MR. KORB SAYS WILL BE PAID SOMETHING LESS THAN TWO HUNDRED THOUSAND DOLLARS QUOTE SOME PEOPLE ARE MORE WILLING TO DO GOD'S WORK THAN OTHERS QUOTE SAYS MR. KORB WHO IS BEING PAID TEN THOUSAND DOLLARS A MONTH I'D SUBMIT THAT IF YOU WERE TO PAY SAY ONE HUNDRED TWENTY THOUSAND DOLLARS YOU'RE NOT GOING TO FIND SOMEONE WHO WOULD DO THAT JOB AND IF YOU DID THEY'D PROBABLY FAIL NEARLY A YEAR AFTER ITALIANS VOTED OVERWHELMINGLY IN FAVOR OF A REFERENDUM CHANGING THEIR SCANDAL PLAGUED POLITICAL SYSTEM A DATE FOR EARLY PARLIAMENTARY ELECTIONS HAS BEEN SET FOR MARCH TWENTY SEVENTH PRESIDENT OSCAR LUIGI SCALFARO YESTERDAY DISSOLVED PARLIAMENT AND REJECTED PREMIER CARLO A. CIAMPI'S RESIGNATION ASKING HIM TO REMAIN AS HEAD OF A CARETAKER GOVERNMENT UNTIL ELECTIONS ARE HELD MR. CIAMPI OFFERED HIS RESIGNATION THURSDAY DURING A NO CONFIDENCE VOTE IN PARLIAMENT ON HIS EIGHT MONTH OLD GOVERNMENT THE MARCH VOTE IS LIKELY TO MARK THE END OF AN ERA IN ITALY FOLLOWING TUMULTUOUS CORRUPTION SCANDALS THAT DEVASTED ITS IMAGE THE GOVERNING COALITION LED BY THE CHRISTIAN DEMOCRATIC PARTY IS ALMOST SURE TO BE OUSTED FROM ITS NEAR HALF CENTURY DOMINATION OF ITALIAN POLITICS NEW ELECTORAL RULES WHICH CHANGE THE WAY PARLIAMENT IS ELECTED ALSO WILL MARKEDLY ALTER THE COUNTRY'S POLITICAL MAP IN A LETTER TO THE HEADS OF PARLIAMENT MR. SCALFARO CITED THE SUCCESS OF THE APRIL REFERENDUM THE EFFECTS OF CORRUPTION SCANDALS AND THE RESULTS OF LOCAL ELECTIONS AS REASONS FOR THE EARLY DISSOLUTION OF PARLIAMENT THE REFERENDUM CALLED FOR QUOTE A SUBSTANTIAL AND PROFOUND MODIFICATION OF THE POLITICAL ELECTION SYSTEM QUOTE MR. SCALFARO SAID KENNETH FAY NEAL HAD DONE HIS HOMEWORK THE FORTY THREE YEAR OLD DRIFTER HAD STUDIED MOBILE TELECOMMUNICATIONS TECHNOLOGIES CORPORATION'S FINANCIAL FILINGS HE KNEW THAT JAI BHAGAT WAS THE TELECOMMUNICATION COMPANY'S EXECUTIVE VICE PRESIDENT AND A DIRECTOR HE KNEW ROUGHLY WHAT MR. BHAGAT WAS PAID AND HOW MUCH HE WAS WORTH AND HE KNEW APPARENTLY THAT MR. BHAGAT WAS IN CALIFORNIA ON BUSINESS AND WOULDN'T RETURN TO HIS HOME IN JACKSON MISSISSIPPI UNTIL LATE IN THE EVENING LAST WEDNESDAY THUS THAT NIGHT AT ABOUT SEVEN THIRTY P. M. MR. NEAL WEARING A SKI MASK AND BRANDISHING A PISTOL BROKE INTO MR. BHAGAT'S HOUSE BOUND AND GAGGED THE EXECUTIVE'S WIFE AND SEVENTEEN YEAR OLD DAUGHTER AND WAITED THE NEXT TWENTY FOUR HOURS ACCORDING TO LAW ENFORCEMENT OFFICIALS WOULD SEE THE KIDNAPPING OF MR. BHAGAT HIMSELF THE UNFOLDING OF AN ELABORATE SCHEME BY MR. NEAL TO MAKE OFF WITH SEVEN HUNDRED FIFTY THOUSAND DOLLARS AND THE FATAL WOUNDING OF THE KIDNAPPER IN A GUNFIGHT WITH POLICE IN A GROCERY STORE PARKING LOT MR. BHAGAT HIS WIFE AND DAUGHTER ALL SURVIVED UNHARMED ONLY ON FRIDAY DID JACKSON WHERE MTEL IS BASED AND A PATRICIAN TOWN OF THE DEEP SOUTH LEARN OF THE FAMILY'S ABDUCTION OVER THE WEEKEND POLICE CONTINUED TO PIECE TOGETHER A PORTRAIT OF MR. NEAL AS WELL AS ANSWERS TO HOW AND WHY HE CHOSE MR. BHAGAT AS A TARGET QUOTE IT DOESN'T APPEAR THAT MR. NEAL HAD ANY CONNECTION TO MTEL QUOTE SAID M. C. OVERTON A SPECIAL AGENT OF THE FEDERAL BUREAU OF INVESTIGATION RATHER MR. NEAL HAD KNOWLEDGE OF MR. BHAGAT'S POSITION AT THE COMPANY AND HIS STATUS IN THE COMMUNITY IT WAS STRICTLY MONETARY INDEED IN AN INTERVIEW FRIDAY MR. BHAGAT FORTY SEVEN DESCRIBED THE EVENTS OF THE PREVIOUS DAY NOTING THAT HIS ABDUCTOR WAS AMAZINGLY FRANK AT TIMES IN EXPLAINING HOW HE HAD COME TO BE STANDING IN THE BHAGATS' HOUSE WITH A GUN POINTED TOWARD THEIR HEADS WHEN MR. BHAGAT OPENED THE DOOR TO HIS HOME AT ABOUT TEN FORTY P. M. ON WEDNESDAY HE FOUND HIS WIFE JACKIE WITH HER HANDS TIED AND HER MOUTH TAPED SHUT HIS DAUGHTER MELANIE SIMILARLY GAGGED WAS BOUND TO A CHAIR AND BLINDFOLDED STANDING OFF TO THEIR SIDE WAS A MAN WITH A MASK HE TOLD ME MISTER I HAVE A GUN IF YOU COOPERATE YOU WON'T GET HURT MR. BHAGAT RECALLED I THOUGHT IT WAS A JOKE THE ABDUCTOR WHOM LAW ENFORCEMENT OFFICIALS IDENTIFIED FRIDAY AS KENNETH NEAL A DRIFTER WITH TIES TO JACKSON REMAINED AWAKE THROUGH WEDNESDAY NIGHT HOLDING THE FAMILY HOSTAGE HE OBVIOUSLY HAD DONE SOME RESEARCH MR. BHAGAT SAID FRIDAY QUOTE HE SEEMED TO KNOW A LOT ABOUT MTEL HE KNEW WHAT MY SALARY WAS HE SAID HE HAD READ MTEL'S REPORTS APPARENTLY MR. NEAL HAD ALSO CONSIDERED A SECOND MTEL EXECUTIVE AS A POSSIBLE QUARRY BUT HE SAID I WAS AN EASIER TARGET MR. BHAGAT RECALLED HE SAID THE OTHER FELLOW HAD MORE SECURITY AT HIS HOME ON THURSDAY MR. NEAL ORDERED MRS. BHAGAT AND HER DAUGHTER TO DRIVE TO THEIR LOCAL BANK AND WITHDRAW SEVEN HUNDRED FIFTY THOUSAND DOLLARS MR. NEAL MEANWHILE DROVE AWAY WITH MR. BHAGAT WHO WAS BLINDFOLDED IN A SECOND FAMILY VEHICLE THE TWO GROUPS STAYED IN CONTACT BY MEANS OF CELLULAR PHONES BANK OFFICIALS QUESTIONING THE LARGE AMOUNT OF MONEY THAT MRS. BHAGAT ASKED TO WITHDRAW CONTACTED THE F. B. I. MRS. BHAGAT THEN REVEALED THE SITUATION TO LAW ENFORCEMENT OFFICIALS WHO BEGAN MONITORING HER MOVEMENTS AFTER LEAVING THE BANK MRS. BHAGAT WAS ORDERED BY PHONE TO MEET MR. NEAL AT A PARKING LOT ON THE NORTH SIDE OF THE CITY THERE SHE HANDED THE MONEY TO MR. NEAL WHO DROVE OFF WITH MR. BHAGAT FOLLOWED AT A DISTANCE BY POLICE FINALLY AT ABOUT NINE P. M. MR. NEAL PARKED AT A GROCERY STORE GOT OUT OF THE CAR WITH THE RANSOM IN HIS HANDS AND HEADED TOWARD A SECOND PARKED CAR AT THAT POINT POLICE ORDERED MR. NEAL TO HALT INSTEAD HE OPENED FIRE MY FIRST INSTINCT WAS THAT HE HAD SHOT AT ME BUT MISSED SAID MR. BHAGAT WHO WAS STILL SITTING IN THE CAR BLINDFOLDED WHEN THE GUNFIRE ERUPTED MR. NEAL WAS HIT SEVERAL TIMES AND TAKEN TO A LOCAL HOSPITAL WHERE HE DIED FROM HIS WOUNDS NO ONE ELSE WAS INJURED OVER THE WEEKEND RESIDENTS OF JACKSON RECALLED A SIMILAR INCIDENT IN NINETEEN EIGHTY EIGHT WHEN THE WIFE OF ONE OF THE STATE'S MOST PROMINENT BUSINESSMEN ROBERT HEARIN WAS KIDNAPPED IN A CASE THAT DREW NATIONWIDE ATTENTION MR. HEARIN PAID AN ESTIMATED ONE MILLION DOLLARS IN RANSOM BUT HIS WIFE WAS NEVER FOUND FRIDAY EXECUTIVES AT MTEL SAID THEY WERE STUNNED BY THE INCIDENT BUT THE COMPANY DECLINED TO DISCUSS WHAT PROTECTIVE MEASURES IF ANY WERE PROVIDED FOR EXECUTIVES OR WHAT MEASURES MIGHT BE ADDED IN THE FUTURE FOR HIS PART MR. BHAGAT SAID FRIDAY THAT HE WAS JUST GLAD MY FAMILY AND I ARE ALIVE BUT HE PROFESSED TO BE MYSTIFIED BY THE STRANGER IN HIS HOME QUOTE HE WAS ACTUALLY VERY NICE VERY RESPECTFUL QUOTE MR. BHAGAT SAID HE SEEMED TO ADMIRE WHAT I DID AMERICAN ELECTRIC POWER COMPANY'S COLUMBUS SOUTHERN POWER COMPANY UNIT SAID IT WILL REDEEM ON FEBRUARY TWELFTH THE ENTIRE ONE HUNDRED MILLION DOLLAR PRINCIPAL AMOUNT OUTSTANDING OF ITS EIGHT AND FIVE EIGHTHS PERCENT FIRST MORTGAGE BONDS DUE NINETEEN NINETY SIX AND THE ENTIRE TWENTY MILLION DOLLAR PRINCIPAL AMOUNT OUTSTANDING OF ITS NINE PERCENT FIRSTMORTGAGE BONDS DUE NINETEEN NINETY NINE THE REDEMPTION PRICE FOR THE EIGHT AND FIVE EIGHTHS PERCENT BONDS WILL BE ONE HUNDRED PERCENT OF THE PRINCIPAL AMOUNT OF EACH BOND PLUS ACCRUED INTEREST FROM FEBRUARY FIRST TO FEBRUARY TWELFTH TO BE PAID UPON PRESENTATION OF THE BONDS INTEREST PAYABLE FEBRUARY FIRST TO RECORD HOLDERS OF THE BONDS WILL BE PAID AS USUAL THE REDEMPTION PRICE FOR THE NINE PERCENT BONDS WILL BE ONE HUNDRED ONE POINT SEVEN FOUR PERCENT OF THE PRINCIPAL AMOUNT OF EACH BOND PLUS ACCRUED INTEREST FROM LAST DECEMBER FIRST TO FEBRUARY TWELFTH TO BE PAID UPON PRESENTATION OF THE BONDS COLUMBUS SOUTHERN ALSO SAID IT WILL REDEEM THE ONE MILLION DOLLAR PRINCIPAL AMOUNT OF ITS NINE PERCENT FIRST MORTGAGE BONDS DUE TWO THOUSAND SEVENTEEN ON MARCH FIRST THE PRINCIPAL AMOUNT CAN BE REDEEMED AT THE SPECIAL REDEMPTION PRICE OF ONE HUNDRED PERCENT OF THE PRINCIPAL AMOUNT OF EACH BOND TO BE PAID UPON PRESENTATION OF THE BONDS CALLED FOR REDEMPTION INTEREST PAYABLE MARCH FIRST WILL BE PAID AS USUAL JAPANESE AUTHORITIES ARE CONDUCTING A WIDESPREAD PROBE INTO THE FLOW OF HIGH TECHNOLOGY FROM JAPANESE COMPANIES TO NORTH KOREA THE ISOLATED COMMUNIST NATION WIDELY SUSPECTED OF DEVELOPING NUCLEAR WEAPONS TOKYO METROPOLITAN POLICE SAID FRIDAY THEY ARE MAKING SEARCHES AND QUESTIONING OFFICIALS AT NEARLY A DOZEN DIFFERENT COMPANIES IN AND AROUND TOKYO POLICE SUSPECT THE COMPANIES MAY HAVE USED A COMPLICATED PIPELINE TO EXPORT AN ELECTRONICS DEVICE THAT CAN IMPROVE THE ACCURACY OF MISSILES JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY WHICH ENFORCES THE NATION'S EXPORT CONTROL LAWS ALSO HAS LAUNCHED AN INVESTIGATION MINISTRY OFFICIALS SAID JAPAN'S MOVES MARK THE FIRST TIME THAT ANY NATION HAS CONDUCTED SUCH A PUBLIC INVESTIGATION SINCE NORTH KOREA'S NUCLEAR PROGRAM TRIGGERED INTERNATIONAL TENSIONS OVER THE PAST YEAR PYONGYANG INSISTS ITS NUCLEAR REACTORS ARE PURELY FOR CIVILIAN ENERGY USE BUT ITS PERSISTENT REFUSAL TO ALLOW INTERNATIONAL INSPECTION HAS FUELED SUSPICION IT IS DEVELOPING ATOMIC WEAPONS AFTER MONTHS OF DIFFICULT NEGOTIATIONS NORTH KOREA AGREED EARLIER THIS MONTH TO ALLOW INSPECTIONS OF ITS DECLARED NUCLEAR RESEARCH SITES BUT THE U. S. IS CONTINUING TO PRESS FOR FURTHER INSPECTIONS OF ADDITIONAL SITES AND IS STILL SEEKING TO HAVE NORTH KOREA REAFFIRM ITS OBLIGATIONS UNDER THE NUCLEAR NONPROLIFERATION TREATY SOME U. S. EXPERTS CLAIM PYONGYANG ALREADY HAS BUILT ONE OR MORE BOMBS NORTH KOREA ALSO RECENTLY TESTED A HEAVY MISSILE CALLED THE RODONG ONE WHICH IS THOUGHT TO BE CAPABLE OF DELIVERING A NUCLEAR WARHEAD TO PARTS OF JAPAN QUOTE IT SEEMS INCREDIBLE THAT JAPANESE WOULD HELP THE NORTH KOREAN MISSILE PROGRAM SINCE THE RODONG ONE IS AIMED AT THEM QUOTE SAID GARY MILHOLLIN HEAD OF THE WISCONSIN PROJECT ON NUCLEAR ARMS CONTROL IN WASHINGTON D. C. BUT IT WOULDN'T BE THE FIRST TIME THAT FIRMS UNDERMINED THEIR OWN COUNTRY FOR MONEY JAPAN IN PARTICULAR HAS A COMPLEX RELATIONSHIP WITH NORTH KOREA AND TECHNOLOGY EXPORTERS MAY HAVE HAD POLITICAL AS WELL AS PROFIT MOTIVES JAPAN IS HOME TO ROUGHLY SEVEN HUNDRED THOUSAND ETHNIC KOREANS ONE HUNDRED FIFTY THOUSAND OF WHOM ARE LOYAL SUPPORTERS OF NORTH KOREA'S KIM IL SUNG ANALYSTS SAY TOKYO IS AFRAID OF OFFENDING PYONGYANG SUPPORTERS LEST THEY CAUSE UNREST IN JAPAN NORTH KOREA IS UNDERSTOOD TO BE HIGHLY DEPENDENT ON THE SUPPORT OF ETHNIC KOREAN SYMPATHIZERS RESIDING IN JAPAN AN ORGANIZATION OF NORTH KOREAN SUPPORTERS IN JAPAN REPORTEDLY CHANNELS ABOUT SIX HUNDRED MILLION DOLLARS A YEAR TO NORTH KOREA THE JAPANESE COMPANIES ARE SUSPECTED OF SHIPPING SPECTRUM ANALYZERS WHICH ARE WIDELY USED IN INDUSTRY TO STUDY AND IMPROVE RADIO AND TELEVISION BROADCASTING METHODS DEFENSE ANALYSTS SAID MORE SOPHISTICATED SPECTRUM ANALYZERS HOWEVER CAN BE USED TO FINE TUNE RADAR SIGNALS AS WELL MORE ACCURATE RADAR WOULD ALLOW WEAPON DEVELOPERS TO IMPROVE MISSILE ACCURACY THE LEADING INDUSTRIALIZED NATIONS INCLUDING JAPAN PROHIBIT THE EXPORT OF TECHNOLOGY WITH POTENTIAL MILITARY APPLICATIONS TO COMMUNIST NATIONS JAPANESE OFFICIALS INSIST THEY HAVE BEEN ESPECIALLY CAREFUL TO CURB SUCH SALES SINCE A TOSHIBA CORPORATION AFFILIATE CAUSED A STIR FOR SELLING EQUIPMENT IN THE EARLY NINETEEN EIGHTIES THAT WAS USED TO MAKE QUIET PROPELLERS FOR SOVIET SUBMARINES POLICE ON FRIDAY DECLINED TO IDENTIFY WHICH COMPANIES ARE SUSPECTED OF THE ILLEGAL EXPORTS TO NORTH KOREA JAPANESE MEDIA HOWEVER WIDELY REPORTED THAT SEVERAL YEARS AGO A SMALL TRADING COMPANY CALLED YOKOHAMA MACHINERY TRADING CORPORATION EXPORTED SPECTRUM ANALYZERS TO NORTH KOREA THROUGH CHINA OFFICIALS AT THE COMPANY WHICH IS REGISTERED AS HAVING ONLY THREE EMPLOYEES WERE NOT AVAILABLE FOR COMMENT SEVERAL JAPANESE COMPANIES MAKE SPECTRUM ANALYZERS ON THE TOKYO STOCK MARKET SHARES IN ELECTRONIC EQUIPMENT MAKER ANRITSU CORPORATION FELL ELEVEN PERCENT IN HEAVY TRADING ON FRIDAY ON RUMORS THAT AN ANRITSU SUBSIDIARY HAD DELIVERED THE TECHNOLOGY TO THE EXPORTERS ANRITSU OFFICIALS AFTER REFUSING TO RETURN REPEATED TELEPHONE CALLS HELD A NEWS CONFERENCE FRIDAY WITHOUT INVITING FOREIGN JOURNALISTS ON SATURDAY MAJOR JAPANESE NEWSPAPERS CARRIED ARTICLES QUOTING OFFICIALS AT AN UNIDENTIFIED ELECTRONICS COMPANY ADMITTING TO THE SALE OF THE SPECTRUM ANALYZERS JENNIFER CODY CONTRIBUTED TO THIS ARTICLE DOLLAR SENTIMENT LIKELY WILL REMAIN BULLISH THIS WEEK AS THE CURRENCY BENEFITS FROM MORE SIGNS OF A STRENGTHENING U. S. ECONOMY AND EXPECTATIONS OF DECLINING INTEREST RATES IN OTHER MAJOR NATIONS THE U. S. CURRENCY IS EXPECTED TO GAIN MORE GROUND AGAINST THE MARK ESPECIALLY IF THE BUNDESBANK'S POLICY MAKING PANEL TRIMS IMPORTANT INTEREST RATES AT ITS SCHEDULED MEETING THURSDAY SOME ECONOMISTS ALSO EXPECT THE DOLLAR TO CLIMB AGAINST THE YEN CITING POSSIBLE DISAPPOINTMENT OVER ECONOMIC STIMULUS MEASURES TO BE UNVEILED BY THE JAPANESE GOVERNMENT AND THE POTENTIAL FOR A DECLINE IN INTEREST RATES QUOTE THE U. S. ECONOMY WILL CONTINUE TO EXPERIENCE STRONG GROWTH AND DESPITE THE MODEST RECOVERY THE YEN STAGED FROM ITS EXTREME LOWS A FURTHER EASING IS STILL LIKELY IN JAPAN QUOTE SAYS JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS INCORPORATED LATE FRIDAY IN NEW YORK THE DOLLAR WAS TRADING AT ONE POINT SEVEN FOUR NINE FIVE MARKS AND ONE HUNDRED ELEVEN POINT OH SIX YEN COMPARED WITH ONE POINT SEVEN FIVE OH FIVE MARKS AND ONE HUNDRED ELEVEN POINT SEVEN SIX YEN LATE THURSDAY ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED ELEVEN POINT THREE FIVE YEN AND AT ONE POINT SEVEN FIVE OH FIVE MARKS MR. LIPSKY AND OTHERS SAY THE DOMINANT FACTOR IN CURRENCIES TRADING IN THE WEEKS AHEAD WILL BE THE CONTINUED STRENGTH OF THE U. S. ECONOMY LAST WEEK A BARRAGE OF POSITIVE ECONOMIC DATA CONFIRMED WHAT MANY ECONOMISTS HAVE BEEN SAYING THAT U. S. GROSS DOMESTIC PRODUCT GROWTH MAY HAVE TOPPED FIVE PERCENT IN THE FOURTH QUARTER AND THAT A SIGNIFICANT SLOWING OF ACTIVITY IN THE FIRST QUARTER ISN'T NECESSARILY IN THE CARDS MANUFACTURING ACTIVITY IN PARTICULAR SEEMS POISED FOR SUSTAINABLE GAINS MOST ECONOMISTS SEE U. S. INTEREST RATES AS STABLE OR CLIMBING WHILE RATE CUTS ARE PROBABLE IN MANY STAGNATING EUROPEAN ECONOMIES RISING RATES MAKE DOLLAR DENOMINATED DEPOSITS MORE ATTRACTIVE TO INVESTORS THE U. S. ECONOMY ALSO APPEARS TO BE DRAWING MOMENTUM FROM A REBOUND IN THE HOUSING INDUSTRY THE PACE OF HOUSING STARTS IN DECEMBER IS SCHEDULED TO BE RELEASED THURSDAY DEVELOPMENTS IN EUROPE ALSO WILL BE IMPORTANT MARKET WATCHERS CONTINUE TO PLAY THE GUESSING GAME OF WHEN NOT IF CUTS IN IMPORTANT INTEREST RATES WILL TAKE PLACE IN GERMANY MOST DOUBT THAT THE BUNDESBANK WILL ALTER POLICY AT THURSDAY'S MEETING ALTHOUGH AN EASING DOES SEEM LIKELY BEFORE THE END OF FEBRUARY THEY ADD HOWEVER THE BUNDESBANK'S HAND COULD BE FORCED SOONER SHOULD THE MARK DECLINE SHARPLY SAYS SALOMON'S MR. LIPSKY THE RECENT WEAKNESS OF THE DEUTSCHE MARK AGAINST THE DOLLAR REFLECTS GROWING PESSIMISM ABOUT THE OUTLOOK FOR GERMANY'S RECOVERY HE NOTES WITH THE RECENT STRENGTH OF THE DOLLAR AND IN THE FACE OF A WEAKENING MARK THE BUNDESBANK DOESN'T WANT TO EASE MONETARY POLICY NOW SAYS SANDY BATTEN SENIOR ECONOMIST WITH CITIBANK WITH THE MARKETS ANTICIPATING INTEREST RATES TO FALL NO ONE WILL HOLD THE MARK IN ANTICIPATION OF A CUT THEY'LL HOLD IT AFTER ANALYSTS BELIEVE CUTS COULD TAKE PLACE AT THE COUNCIL'S FEBRUARY THIRD SESSION AFTER RELEASE OF JANUARY INFLATIONARY DATA EARL JOHNSON VICE PRESIDENT OF HARRIS TRUST AND SAVINGS BANK EXPECTS GERMAN CENTRAL BANKERS TO CUT THE DISCOUNT AND LOMBARD RATES BY AS MUCH AS FIFTY BASIS POINTS OR ONE HALF A PERCENTAGE POINT A CUT IN THESE RATES WOULD BOLSTER THE DOLLAR AGAINST THE MARK HE SAYS AFTER A RATE CUT BY THE BUNDESBANK AUSTRIA BELGIUM AND FRANCE WILL LIKELY FOLLOW SUIT ANALYSTS ADD THE BANK OF ENGLAND ALSO IS EXPECTED TO CUT ITS BASE RATE BY ONE HALF PERCENTAGE POINT THOUGH NOT IMMEDIATELY SYRIAN PRESIDENT HAFEZ ALASSAD AGREED TO SEEK QUOTE NORMAL PEACEFUL QUOTE RELATIONS WITH ISRAEL UNDER CERTAIN CONDITIONS MARKING WHAT U. S. OFFICIALS CALLED A BREAKING OF SIGNIFICANT NEW GROUND IN MIDEAST PEACE TALKS MR. ASSAD AND PRESIDENT CLINTON MET YESTERDAY FOR FOUR HOURS AND TWENTY MINUTES WITH AIDES BEFORE A ONE ON ONE ENCOUNTER LASTING FIFTY MINUTES THE TWO SESSIONS RESULTED IN STATEMENTS INDICATING PROGRESS IN RESOLVING A MAJOR STUMBLING BLOCK IN PEACE NEGOTIATIONS HOW SYRIA WOULD DEFINE ITS PEACE WITH ISRAEL ASKED IF MR. ASSAD'S DEFINITION OF PEACE WOULD MEAN OPEN BORDERS FREE TRADE AND DIPLOMATIC RELATIONS TERMS THAT ISRAEL HAS SOUGHT FROM A RELUCTANT SYRIA MR. CLINTON SAID AT A NEWS CONFERENCE AFTER THE MEETING THE SHORT ANSWER IS YES I BELIEVE THAT PRESIDENT ASSAD HAS MADE A CLEAR FORTHRIGHT AND VERY IMPORTANT STATEMENT ON NORMAL PEACEFUL RELATIONS WHEN ASKED THE SAME QUESTION MR. ASSAD A VETERAN OF WAR WITH ISRAEL AND A CRAFTY NEGOTIATOR WOULDN'T ELABORATE BUT HE STRESSED THE NEED FOR A COMPREHENSIVE PEACE IN HONOR WE FOUGHT SAID MR. ASSAD SOUNDING THE CRY OF A WARRIOR LAYING DOWN HIS SWORD IN HONOR WE NEGOTIATE AND IN HONOR WE SHALL MAKE PEACE IF ISRAELI LEADERS RESPOND IN KIND THE SYRIAN LEADER SAID QUOTE A NEW ERA OF SECURITY AND STABILITY IN WHICH NORMAL PEACEFUL RELATIONS AMONG ALL SHALL DAWN ON THE REGION QUOTE IN THE PAST WHEN MR. ASSAD HAS SPOKEN ABOUT COMPREHENSIVE PEACE HE HAS MEANT A PEACE BETWEEN ISRAEL AND ALL ITS ARAB NEIGHBORS AND NEGOTIATING PARTNERS THAT INCLUDES JORDAN SYRIA LEBANON AND THE PALESTINIANS FURTHER WHEN MR. ASSAD HAS USED THE TERM JUST PEACE AS HE DID YESTERDAY HE WAS REFERRING TO A PEACE IN WHICH ARABS WIN BACK THE LANDS OCCUPIED BY ISRAEL THIS ISSUE IS IMPORTANT BECAUSE THIS DIRECTLY TOUCHES ON THE CURRENT STALEMATE IN SYRIAN ISRAELI TALKS ISRAEL WANTS MR. ASSAD TO DESCRIBE THE TYPE OF PEACE HE IS WILLING TO HAVE BEFORE ISRAEL ANSWERS MR. ASSAD'S QUESTION ABOUT WHETHER IT WILL RETURN ALL OF THE GOLAN HEIGHTS MR. ASSAD WANTS IT THE OTHER WAY AROUND U. S. OFFICIALS STRESSED THE FACT THAT MR. ASSAD FOR THE FIRST TIME TALKED ABOUT NORMAL RELATIONS WITH ISRAEL A MOVE THEY HOPE WILL SPUR TALKS BETWEEN THE TWO NATIONS TWO SENIOR U. S. OFFICIALS DENNIS ROSS THE STATE DEPARTMENT'S MIDDLE EAST COORDINATOR AND MARTY INDYK OF THE NATIONAL SECURITY COUNCIL LEFT LAST NIGHT TO BRIEF ISRAELI LEADERS ON THE TALKS NEITHER MR. CLINTON NOR HIS AIDES WOULD STATE PUBLICLY WHETHER MR. ASSAD HAD DETAILED IN THE TALKS EXACTLY WHAT HE MEANT BY NORMAL RELATIONS BUT OFFICIALS SAID PRIVATELY THAT THE SYRIAN LEADER CLEARLY UNDERSTANDS WHAT IS BEING ASKED OF HIM AT ONE POINT MR. ASSAD TOLD REPORTERS THAT HE AND MR. CLINTON AGREED ON THESE ISSUES THE REQUIREMENTS FOR PEACE WE WILL RESPOND TO THESE REQUIREMENTS HE CAUTIONED HOWEVER THAT THE RESULTS WOULD HINGE ON THE PEACE NEGOTIATIONS MORE BROADLY THE SUBSTANCE OF THE TALKS SIGNALED THAT MR. ASSAD IS READY TO PLAY BALL AGAIN IN THE PEACE PROCESS THE SYRIAN LEADER LONG A HARD LINER IN DEALING WITH ISRAEL WAS PEEVED THAT ISRAEL HAD STRUCK A SEPARATE PEACE DEAL WITH THE PALESTINE LIBERATION ORGANIZATION FEEDING HIS SUSPICIONS THAT ISRAEL WAS TRYING TO ISOLATE HIM THE U. S. THIS WEEKEND WAS GIVING HIM THE CHANCE TO GET BACK INTO THE THICK OF THE PEACE PROCESS CLEARLY MR. ASSAD AGREED BUT ON HIS OWN TERMS FOR INSTANCE HE STILL FROWNED ON SEPARATE PEACE AGREEMENTS WITH ISRAEL QUOTE HISTORICAL EVIDENCE BOTH PAST AND PRESENT QUOTE MR. ASSAD SAID QUOTE HAVE PROVED THAT SEPARATE PEACE AND PARTIAL SOLUTIONS WERE NOT CONDUCIVE TO THE ESTABLISHMENT OF REAL PEACE IN THE REGION IN THIS REGARD I WOULD LIKE TO EXPRESS MY SATISFACTION THAT PRESIDENT CLINTON HIMSELF HAS COMMITTED TO THE OBJECTIVE OF COMPREHENSIVE PEACE IN TURN AIDES SAID THAT MR. CLINTON PRESSED IN THE TALKS ON THE ISSUE OF TERRORISM SPECIFICALLY THE NINETEEN EIGHTY EIGHT BOMBING OF PAN AMERICAN FLIGHT ONE HUNDRED THREE KILLING ALL TWO HUNDRED FIFTY NINE PEOPLE ABOARD AND ELEVEN ON THE GROUND IN LOCKERBIE SCOTLAND TWO SUSPECTS IN THE BOMBING ARE BELIEVED TO BE IN LIBYA WHICH WON'T EXTRADITE THEM FOR PROSECUTION MR. ASSAD SAID CLINTON AIDES INDICATED THAT HE DIDN'T HAVE ANY ADDITIONAL INFORMATION ON THE BOMBING BUT SHOWED WILLINGNESS TO COOPERATE U. S. OFFICIALS SAID THEY LEFT THE TALKS HOPEFUL THERE MAY ALSO BE A BREAKTHROUGH ON THE WIDER TERRORISM QUESTION SYRIA HAS BEEN ACCUSED OF SUPPORTING TERRORISM BUT IT OFTEN HAS INSISTED THAT WHAT OTHER NATIONS SEE AS TERRORISTS ARE FREEDOM FIGHTERS MR. CLINTON AND MR. ASSAD TALKED ABOUT ESTABLISHING A MECHANISM THAT COULD RESOLVE THESE TWO VIEWPOINTS AIDES WERE UPBEAT THAT THE SYRIANS ALSO WANTED TO RESOLVE THE QUESTION HOPING PERHAPS THAT IT COULD LEAD TO THEIR REMOVAL FROM THE STATE DEPARTMENT'S LIST OF TERRORIST NATIONS SYRIA HAS BEEN ON THE LIST SINCE NINETEEN SEVENTY NINE AND THAT STATUS RESTRICTS U. S. TRADE WITH SYRIA IF MR. CLINTON'S FIRST FACE TO FACE MEETING WITH MR. ASSAD RESULTS IN A BREAKTHROUGH IN THE STALLED PEACE TALKS IT COULD WIND UP AS THE MOST SIGNIFICANT OF THE INITIATIVES ON HIS NINE DAY TREK THROUGH EUROPE AND RUSSIA A JOURNEY THAT HAS LARGELY BEEN LONG ON IMAGERY BUT SHORT ON LASTING RESULTS THE PRESIDENT FOR INSTANCE RECEIVED A SETBACK IN HIS RUSSIAN POLICY WHEN FIRST DEPUTY PRIME MINISTER YEGOR GAIDAR ANNOUNCED THAT HE WAS LEAVING THE GOVERNMENT BECAUSE OF HIS FEARS THAT HE WON'T HAVE MUCH INFLUENCE ON ECONOMIC DECISIONS ALSO MR. CLINTON MADE A DEAL WITH UKRAINE TO DISARM ITS NUCLEAR WEAPONS BUT THE DEAL HAS RUN INTO OPPOSITION IN THE PARLIAMENT AND FIGHTING IN BOSNIA HAS CONTINUED DESPITE NEW THREATS FROM THE NORTH ATLANTIC TREATY ORGANIZATION THE HISTORY OF MIDEAST POLITICS IS THAT WHATEVER PROGRESS WAS MADE YESTERDAY MAY NOT BE SEEN FOR WEEKS OR EVEN MONTHS NEXT WEEK HOWEVER OBSERVERS WILL LOOK FOR CONCRETE SIGNS OF PROGRESS WHEN THE NEXT ROUND OF OFFICIAL TALKS RESUME IN WASHINGTON DUTCH PUBLISHER VERENIGDE NEDERLANDSE UITGEVERSBEDRIJVEN B. V. AGREED TO BUY B. P. I. COMMUNICATIONS L. P. THE PUBLISHER OF ADWEEK BILLBOARD AND SEVENTEEN OTHER SPECIALTY MAGAZINES FOR TWO HUNDRED TWENTY MILLION DOLLARS B. P. I. BASED IN NEW YORK IS ONE THIRD OWNED BY NEW YORK TIMES COMPANY THE VENTURE CAPITAL FIRM BOSTON VENTURES AND B. P. I. MANAGEMENT OWN THE OTHER TWO THIRDS NEW YORK TIMES SAID IT EXPECTS TO RECEIVE FIFTY FIVE MILLION DOLLARS WHEN THE TRANSACTION IS COMPLETED THE COMPANY ACQUIRED ITS INTEREST IN B. P. I. AS PART OF ITS ACQUISITION LAST YEAR OF AFFILIATED PUBLICATIONS INCORPORATED PUBLISHER OF THE BOSTON GLOBE A NEW YORK TIMES SPOKESWOMAN SAID THE DECISION TO SELL ITS B. P. I. INTEREST DIDN'T REFLECT SOME BIGGER STRATEGY QUOTE IT WAS THE MAJORITY HOLDER'S MAIN DECISION QUOTE SHE SAID CLOSELY HELD B. P. I. SAID IT IS PROFITABLE WITH NINETEEN NINETY THREE REVENUE OF ONE HUNDRED THIRTY MILLION DOLLARS AND EIGHT HUNDRED EMPLOYEES THE COMPANY DECLINED TO ESTIMATE PROFITS V. N. U. WANTS A PLATFORM TO EXPAND IN THE U. S. SAID JERRY HOBBS B. P. I.'S CHIEF EXECUTIVE B. P. I. IS GOING TO BE THEIR PLATFORM MR. HOBBS ADDED THAT B. P. I.'S MANAGEMENT TEAM WILL REMAIN IN PLACE IN ADDITION TO ITS SPECIALTY PUBLICATIONS B. P. I. OPERATES A MEDIA MONITORING SERVICE AND A SPECIALTY BOOK PUBLISHER THE B. P. I. ACQUISITION WILL NEARLY DOUBLE V. N. U.'S U. S. PRESENCE V. N. U. HAS U. S. REVENUE OF ABOUT ONE HUNDRED FIFTY FIVE MILLION DOLLARS FROM FINANCIAL DATA PUBLISHING AND MARKETING INFORMATION SERVICES V. N. U.'S DISCLOSURE INCORPORATED COLLECTS AND PUBLISHES FINANCIAL DATA ON NEW YORK AND AMERICAN STOCK EXCHANGE COMPANIES V. N. U. ALSO OWNS CLARITAS CORPORATION A DATABASE MARKETING RESEARCH COMPANY AND OPERATES COMPETITIVE MEDIA REPORTING A JOINT VENTURE WITH ARBITRON COMPANY THAT TRACKS ADVERTISING SPENDING LOUT SCHOLVINCK V. N. U. DIRECTOR OF GENERAL AFFAIRS SAID V. N. U. IS RUNNING OUT OF ROOM TO GROW IN THE NETHERLANDS OPPORTUNITIES ARE VERY SELDOM AND VERY RARE HE SAID WE WANT TO INTERNATIONALIZE OUR ACTIVITIES FROM HOLLAND ABROAD B. P. I.'S SPECIALIZED PUBLISHING AND INFORMATION SERVICES FIT WELL WITH V. N. U.'S U. S. ACTIVITIES HE SAID WITH WORLD WIDE REVENUE OF ONE POINT TWO BILLION DOLLARS V. N. U. IS A LEADING PUBLISHER IN THE NETHERLANDS IT PUBLISHES WOMEN'S MAGAZINES AND REGIONAL NEWSPAPERS IN THE NETHERLANDS AND BELGIUM AND BUSINESS AND CONSUMER PERIODICALS IN SEVERAL OTHER EUROPEAN COUNTRIES THE COMPANY ALSO HAS INTERESTS IN SEVERAL COMMERCIAL TELEVISION STATIONS IN EUROPE PRIVATE SECTOR HEALTH COST STRATEGIES AND THE DEBATE OVER PRESIDENT CLINTON'S HEALTH CARE REFORM PLAN ARE FUELING ROBUST EARNINGS GROWTH AT THE NATION'S HEALTH MAINTENANCE ORGANIZATIONS ANALYSTS EXPECT H. M. O.S TO REPORT EARNINGS GAINS WELL OVER TWENTY PERCENT AND IN ONE CASE A SEVENTY THREE PERCENT JUMP FOR THE QUARTER ENDED DECEMBER THIRTY FIRST THE RESULT OF SURGING ENROLLMENTS AND MODERATING HEALTH CARE COSTS THE INDUSTRY IS POISED FOR A CONTINUED STELLAR PERFORMANCE ANALYSTS ARGUE AS IT PLAYS A MAJOR ROLE IN CHANGING HOW HEALTH CARE IS DELIVERED IN THE U. S. EVEN BEFORE CONGRESS PASSES REFORM LEGISLATION QUOTE H. M. O.S ARE IN THE FOREFRONT OF ECONOMICALLY BASED HEALTH REFORM QUOTE SAID KENNETH S. ABRAMOWITZ ANALYST AT SANFORD C. BERNSTEIN AND COMPANY THEY ARE DELIVERING COST EFFECTIVENESS AND EMPLOYERS AND EMPLOYEES WANT TO BUY INTO THAT THAT'S WHY THEIR MEMBERSHIP IS GROWING AT TEN PERCENT BUT THE MEASURE OF THAT SUCCESS ALSO POSES A NEW CHALLENGE AN INDUSTRY THAT ONCE DEPENDED HEAVILY ON PREMIUM INCREASES FOR PROFIT GROWTH NOW FACES A CLIMATE WHERE THE ABILITY TO MANAGE COSTS WILL SEPARATE WINNERS FROM LOSERS PREMIUMS THE MONTHLY MEMBERSHIP CHARGES THAT ARE AN H. M. O.'S REVENUE WILL RISE NATIONALLY BY FIVE PERCENT TO SIX PERCENT FOR NINETEEN NINETY FOUR AND JUST THREE PERCENT TO FOUR PERCENT IN CALIFORNIA ACCORDING TO ELEANOR KERNS ANALYST AT ALEXANDER BROWN AND SONS BOSTON THAT'S DOWN FROM ABOUT EIGHT PERCENT NATIONALLY LAST YEAR AND SIXTEEN PERCENT IN NINETEEN NINETY WHILE GROWING ENROLLMENTS WILL INCREASE REVENUE PROFITS WILL DEPEND ON AMONG OTHER THINGS HOW SKILLFULLY H. M. O.S WORK WITH DOCTORS AND HOSPITALS TO CONTROL USE OF SERVICES WITH BURGEONING MEMBERSHIPS MS. KERNS ADDED MANY H. M. O.S HAVE AMASSED ENOUGH PURCHASING POWER TO NEGOTIATE FAVORABLE CONTRACTS WITH DOCTORS AND HOSPITALS SEVERAL COMPANIES ARE ALSO GROWING THROUGH ACQUISITION A TREND REFLECTED IN F. H. P. INTERNATIONAL CORPORATION'S RECENT AGREEMENT TO ACQUIRE TAKECARE INCORPORATED A MOVE THAT WOULD DOUBLE ITS ENROLLMENT TO MORE THAN ONE POINT SIX MILLION MEMBERS THE MAJOR DRIVER OF H. M. O. PERFORMANCE IS INCREASING ACCEPTANCE AMONG EMPLOYERS AND CONSUMERS OF MANAGED CARE EFFORTS TO CONTAIN COSTS CORPORATIONS ARE FINALLY GETTING MORE SERIOUS ABOUT CONTROLLING HEALTH CARE COSTS SAID BERNARD F. MCDONAGH MANAGING DIRECTOR AT PIPER JAFFRAY INCORPORATED MINNEAPOLIS THEY'RE FORCING EMPLOYEES INTO MANAGED CARE SYSTEMS WITH A SENSE OF URGENCY THAT THEY DIDN'T HAVE BEFORE IN ADDITION THE DEBATE OVER PRESIDENT CLINTON'S HEALTH PLAN HAS PUT A SPOTLIGHT ON H. M. O.S WHICH ARE PART OF THE UNDERPINNINGS OF THE PROGRAM THE ATTENTION HAS PUT H. M. O. STOCKS ON A ROLLER COASTER IN RECENT MONTHS BUT SOME ANALYSTS SUGGEST IT HAS BEEN A BOON TO THE COMPANIES IT HAS INCREASED AWARENESS OF WHAT MANAGED CARE IS AND THAT AWARENESS HAS STIMULATED ENROLLMENT MS. KERNS SAID MEANWHILE MANY H. M. O.S ARE USING STATE OF THE ART TECHNOLOGY TO TRACK COSTS AND THE USE OF SERVICES AND WHAT SOME ANALYSTS CALL THE QUOTE HILLARY FACTOR QUOTE A REFERENCE TO FIRST LADY HILLARY RODHAM CLINTON'S ATTACK ON RUNAWAY COSTS IN THE SYSTEM HAS PROMPTED MANY PROVIDERS OF SERVICES TO HOLD DOWN PRICES ALL OF THOSE FACTORS ARE COMING TOGETHER TO GIVE A VERY GOOD COST PICTURE MS. KERNS SAID THE EXPECTATION THAT THE FEDERAL MEDICARE PROGRAM FOR THE ELDERLY WILL ENCOURAGE MORE BENEFICIARIES TO JOIN H. M. O.S COULD POSE A PROBLEM FOR SOME COMPANIES MR. MCDONAGH WARNED THE GOVERNMENT IS STILL AN UNRELIABLE PAYER IN THE MEDICARE BUSINESS HE SAID ADDING THAT FEW H. M. O.S WILL BE ABLE TO AVOID MEDICARE PATIENTS SOME H. M. O.S HOWEVER ACTIVELY RECRUIT THEM PACIFICARE HEALTH SYSTEMS INCORPORATED CYPRESS CALIFORNIA GETS ABOUT FIFTY PERCENT OF ITS REVENUE FROM MEDICARE WHICH SET A RATE INCREASE FOR NINETEEN NINETY FOUR OF JUST TWO POINT FIVE PERCENT THE COMPANY WAS EXPECTING ABOUT FIVE PERCENT BUT PACIFICARE SHARES THE RISK OF SUCH DECISIONS WITH ITS DOCTORS AND HOSPITALS AND MS. KERNS SAID THE LOWER RATE ISN'T LIKELY TO AFFECT NINETEEN NINETY FOUR PROFIT SHE EXPECTS PACIFICARE TO REPORT EARNINGS OF FIFTY CENTS A SHARE FOR ITS FISCAL FIRST QUARTER UP TWENTY EIGHT PERCENT FROM TEN POINT SEVEN MILLION DOLLARS OR THIRTY NINE CENTS A SHARE A YEAR EARLIER ON REVENUE OF FOUR HUNDRED EIGHTY FOUR POINT EIGHT MILLION DOLLARS THE ESTIMATE EXCLUDES A TAX GAIN OF TEN CENTS TO TWELVE CENTS A SHARE COMMERCIAL ENROLLMENT IS GROWING AT ABOUT TEN PERCENT ANNUALLY WHILE ENROLLMENT BY MEDICARE RECIPIENTS IS GROWING AT A THIRTY PERCENT CLIP PACIFICARE DIDN'T COMMENT ON THE FORECAST UNITED HEALTHCARE CORPORATION MINNEAPOLIS IS EXPECTED TO REPORT A FORTY THREE PERCENT JUMP IN FOURTH QUARTER EARNINGS TO SIXTY SIX CENTS OR SIXTY SEVEN CENTS A SHARE FROM THIRTY TWO POINT TWO MILLION DOLLARS OR FORTY SIX CENTS A SHARE A YEAR EARLIER REVENUE WAS THREE HUNDRED EIGHTY EIGHT POINT FOUR MILLION DOLLARS MS. KERNS EXPECTS THE COMPANY TO REPORT AT LEAST A TWENTY PERCENT GROWTH IN ENROLLMENT FOR H. M. O.S IT HAS OWNED OR MANAGED FOR MORE THAN ONE YEAR ACQUISITIONS OVER THE PAST YEAR WILL BOOST MEMBERSHIP BY NEARLY FORTY PERCENT SHE SAID THE COMPANY IS ALSO REAPING BENEFITS FROM SPECIALTY SERVICES INCLUDING ITS DIVERSIFIED PHARMACEUTICAL SERVICES UNIT WHICH MANAGES PRESCRIPTION DRUG BENEFIT PROGRAMS FOR H. M. O.S AND EMPLOYERS UNITED HEALTHCARE DECLINED TO COMMENT ON THE PREDICTIONS ANALYSTS EXPECT U. S. HEALTHCARE INCORPORATED BLUE BELL PENNSYLVANIA TO POST A THIRTY THREE PERCENT EARNINGS INCREASE TO SEVENTY THREE CENTS OR SEVENTY FOUR CENTS A SHARE FROM FIFTY FIVE CENTS A SHARE A YEAR EARLIER ON REVENUE OF FIVE HUNDRED SEVENTY THREE POINT THREE MILLION DOLLARS MS. KERNS SAID THAT THE H. M. O. HAS BEEN PARTICULARLY EFFECTIVE IN CONTAINING COSTS THROUGH CASE MANAGEMENT AND OTHER METHODS AND THAT FOURTH QUARTER RESULTS ALSO BENEFITED FROM THE ELIMINATION OF STATE GOVERNMENT IMPOSED SURCHARGES FOR UNCOMPENSATED CARE IN NEW JERSEY U. S. HEALTHCARE DECLINED TO COMMENT FOUNDATION HEALTH CORPORATION RANCHO CORDOVA CALIFORNIA IS EXPECTED TO REPORT EARNINGS FOR ITS FISCAL SECOND PERIOD OF SEVENTY FIVE CENTS TO EIGHTY CENTS A SHARE OR AT LEAST TWENTY ONE PERCENT MORE THAN THE NINE POINT SIX MILLION DOLLARS OR SIXTY TWO CENTS A SHARE A YEAR EARLIER ON REVENUE OF THREE HUNDRED THIRTY FOUR POINT ONE MILLION DOLLARS FOUNDATION'S IMMEDIATE FUTURE HOWEVER IS CLOUDED BY ITS RECENT LOSS OF A THREE POINT FIVE BILLION DOLLAR FIVE YEAR CONTRACT TO AETNA LIFE AND CASUALTY COMPANY TO PROVIDE CARE FOR MILITARY RETIREES AND DEPENDENTS FOUNDATION HAS HAD THE BUSINESS SINCE NINETEEN EIGHTY EIGHT THE PENTAGON ORDERED THE CONTRACT REBID AFTER THE U. S. GENERAL ACCOUNTING OFFICE DETERMINED THAT THE AWARD TO AETNA WAS IMPROPER EVEN IF FOUNDATION ULTIMATELY FAILS TO WIN THE CONTRACT MR. MCDONAGH SAID ITS COMMERCIAL BUSINESS IS GROWING RAPIDLY AND THE RECENT ACQUISITION OF CALIFORNIA COMPENSATION INSURANCE COMPANY A WORKER'S COMPENSATION INSURER WILL HELP REPLACE LOST REVENUE THE COMPANY DIDN'T HAVE ANY COMMENT ON WALL STREET EXPECTATIONS F. H. P. BASED IN FOUNTAIN VALLEY CALIFORNIA IS EXPECTED TO POST PROFIT OF TWENTY EIGHT CENTS A SHARE FOR ITS FISCAL SECOND QUARTER A FORTY SEVEN PERCENT JUMP FROM SIX POINT TWO MILLION DOLLARS OR NINETEEN CENTS A SHARE A YEAR EARLIER ON FOUR HUNDRED SIXTY FOUR POINT FIVE MILLION DOLLARS OF REVENUE F. H. P. DECLINED TO COMMENT MS. KERNS ANTICIPATES THAT OXFORD HEALTH PLANS INCORPORATED DARIEN CONNECTICUT WILL REPORT A SEVENTY THREE PERCENT JUMP IN EARNINGS FOR THE FOURTH PERIOD TO TWENTY SIX CENTS A SHARE FROM TWO POINT FOUR MILLION DOLLARS OR FIFTEEN CENTS A SHARE ADJUSTED FOR A TWO FOR ONE STOCK SPLIT OXFORD DIDN'T COMMENT G. T. E. NORTH INCORPORATED A UNIT OF G. T. E. CORPORATION AN OFFERING OF UP TO THREE HUNDRED MILLION DOLLARS OF DEBENTURES SERIES B. MARCUS CABLE COMPANY AND MARCUS CABLE CAPITAL CORPORATION A SHELF OFFERING OF SENIOR DISCOUNT DEBENTURES VIA GOLDMAN SACHS AND COMPANY MESA INCORPORATED MESA OPERATING COMPANY AND MESA CAPITAL CORPORATION A SHELF OFFERING FOR FIFTY ONE MILLION DOLLARS OF TWELVE AND THREE QUARTERS PERCENT SECURED DISCOUNT NOTES DOW CORNING CORPORATION SAID IT WILL RECORD A FOURTH QUARTER PRETAX CHARGE OF SIX HUNDRED FORTY MILLION DOLLARS REPRESENTING ITS QUOTE BEST CURRENT ESTIMATE QUOTE OF THE COMPANY'S POTENTIAL LIABILITY UNDER A PROPOSED FOUR POINT SEVEN FIVE BILLION DOLLAR SETTLEMENT OF ALL BREAST IMPLANT LITIGATION THE FIFTY TO FIFTY JOINT VENTURE BETWEEN DOW CHEMICAL COMPANY AND CORNING INCORPORATED SAID THE AFTER TAX EFFECT OF THE CHARGE WILL BE FOUR HUNDRED FIFTEEN MILLION DOLLARS TO BE ABSORBED EQUALLY BY ITS TWO CORPORATE PARENTS THE FOOD AND DRUG ADMINISTRATION HALTED COSMETIC SILICONE BREAST IMPLANTS IN NINETEEN NINETY TWO AFTER A NUMBER OF LAWSUITS AND COMPLAINTS SURFACED ALLEGING HEALTH PROBLEMS CAUSED BY SILICONE LEAKING FROM IMPLANTS IN SEPTEMBER DOW CORNING ONCE THE WORLD'S BIGGEST MAKER OF SILICONE BREAST IMPLANTS DISCLOSED THAT IT AND OTHER IMPLANT MAKERS WERE IN SETTLEMENT TALKS WITH ATTORNEYS REPRESENTING SEVERAL THOUSAND WOMEN WHO HAD FILED SUIT CLAIMING TO HAVE BEEN HARMED BY THE DEVICES UNDER THAT PLAN MANUFACTURERS RAW MATERIAL SUPPLIERS HEALTH CARE SUPPLIERS AND INSURERS WOULD FUND PAYMENTS TO THE CLAIMANTS OVER THIRTY YEARS THE SPECIFIC SIZE OF THE CHARGE DOW CORNING WOULD HAVE TO TAKE TO COVER THE PROPOSED SETTLEMENT HADN'T PREVIOUSLY BEEN MADE PUBLIC BUT THE FIGURE THE COMPANY PROVIDED FRIDAY WAS GENERALLY IN LINE WITH OBSERVERS' EARLIER ESTIMATES THE VENTURE CALCULATED ITS TOTAL IMPLANT LIABILITY INCLUDING LEGAL ADMINISTRATIVE AND RESEARCH COSTS AT ONE POINT TWO FOUR BILLION DOLLARS IT SAID IT EXPECTS THAT FIGURE TO BE REDUCED BY INSURANCE PAYMENTS OF SIX HUNDRED MILLION DOLLARS BUT DOW CORNING CAUTIONED THAT THE BIG CHARGE ISN'T NECESSARILY THE FINAL WORD OF THE FISCAL PUNISHMENT IMPLANTS REPRESENT AS SETTLEMENT NEGOTIATIONS CONTINUE THE COMPANY SAID ADDITIONAL FACTS AND CIRCUMSTANCES MAY DEVELOP THAT COULD REQUIRE ADDITIONAL PROVISIONS WE ARE ENCOURAGED BY THE PROGRESS BEING MADE IN THE SETTLEMENT NEGOTIATIONS A DOW CORNING OFFICIAL SAID WHILE NO SETTLEMENT AGREEMENT HAS BEEN REACHED YET WE BELIEVE THAT A RESOLUTION CAN BE FOUND DOW CORNING TOOK PAINS TO POINT OUT THAT BASED ON ITS CURRENT EVALUATION OF WHAT IT WILL RECEIVE FROM INSURERS AND FROM ITS OWN OPERATIONS IT EXPECTS TO GENERATE THE FINANCIAL LIQUIDITY REQUIRED TO MEET ITS CONTINUING OPERATIONAL NEEDS AND PARTICIPATE IN THE PROPOSED SETTLEMENT IN THE WAKE OF THE ANNOUNCEMENT STANDARD AND POOR'S CORPORATION AFFIRMED ITS CURRENT RATINGS ON DOW CORNING'S DEBT OF ABOUT FIVE HUNDRED SIXTY MILLION DOLLARS NOTING THAT THE EXPECTED FINANCIAL IMPACT IS ALREADY RECOGNIZED IN THE CURRENT RATING BUT IT SAID THAT THE VENTURE'S RATING OUTLOOK REMAINS NEGATIVE AS THERE IS STILL UNCERTAINTY AS TO WHETHER THE SETTLEMENT WILL BE FINALIZED TERMS OF THE FINAL AGREEMENT AND THE EXTENT OF DOW CORNING'S ULTIMATE INSURANCE RECOVERIES ARE ALSO UNCERTAIN IT ALSO NOTED THAT IT'S NOT CLEAR HOW MANY CLAIMANTS MAY QUOTE OPT OUT QUOTE OF THE SETTLEMENT AND PURSUE THEIR CLAIMS SEPARATELY WHEN THE PROPOSED SETTLEMENT WAS INITIALLY DISCLOSED SOME LAWYERS REPRESENTING WOMEN WHO CLAIM TO HAVE SUFFERED AUTOIMMUNE ILLNESSES AND OTHER AILMENTS FROM SILICONE IMPLANTS CONTENDED THAT THE PAYMENTS WERE INADEQUATE IN SEPARATE RELEASES DOW CHEMICAL IN MIDLAND MICHIGAN SAID ITS SHARE OF THE VENTURE'S CHARGE WILL REQUIRE A FOURTH QUARTER CHARGE OF ONE HUNDRED NINETY TWO MILLION DOLLARS OR SEVENTY CENTS A SHARE CORNING OF CORNING N. Y. SAID ITS HALF WOULD REQUIRE A FOURTH QUARTER CHARGE OF TWO HUNDRED THREE MILLION DOLLARS OR ONE DOLLAR AND SIX CENTS A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY DOW SHARES MOVED UP FIFTY CENTS TO FIFTY EIGHT POINT EIGHT SEVEN FIVE DOLLARS A SHARE CORNING SHARES ROSE TWENTY FIVE CENTS TO THIRTY ONE DOLLARS A SHARE SOME EARPHONES CAN ELIMINATE ANNOYING NOISE PILOT HEADSETS THAT USE ONE NOISE TO MUTE ANOTHER ARE SLIMMING DOWN AND SIMPLIFYING FOR THE CONSUMER MARKET MAKING LIFE QUIETER FOR TRAVELERS ELECTRIC LAWNMOWER USERS JOGGERS AND ANYONE WHO LIVES OR WORKS IN A NOISY PLACE AIRPLANE PILOTS AND SOME FACTORY WORKERS HAVE LONG USED HEADSETS THAT REDUCE HIGH FREQUENCY NOISE PASSIVELY WITH INSULATION AND LOW FREQUENCIES ACTIVELY BY EMITTING ANTINOISE SOUND WAVES THESE HEADSETS ARE BIG AND BULKY AND COST UP TO ONE THOUSAND DOLLARS NOISEBUSTER THE FIRST CONSUMER HEADSET WITH ACTIVE NOISE REDUCTION COMES FROM NOISE CANCELLATION TECHNOLOGIES STAMFORD CONNECTICUT IT HAS NO PASSIVE INSULATION HIGH FREQUENCIES INCLUDING SPEECH MUSIC AND CAR HORNS GET THROUGH BUT VIA BATTERY IT GENERATES ANTINOISE IN THE FATIGUE PRODUCING LOW FREQUENCIES NOISEBUSTER RETAILS FOR ONE HUNDRED FORTY NINE DOLLARS USERS SEEM PLEASED LARRY SCHATZ A DIVORCE LAWYER SAYS NOISEBUSTER CUT THE SOUND OF A JACKHAMMER NEAR HIS MANHATTAN OFFICE QUOTE TO SOMETHING VERY TOLERABLE QUOTE JERRY MILL AN INVESTMENT ANALYST IN DENVER SAYS THAT WHEN HE FLIES NOISEBUSTER GETS RID OF THAT CONSTANT DRONE THAT WEARS YOU OUT ACTIVE NOISE AND VIBRATION TECHNOLOGIES PHOENIX SELLS A COMPETING HEADSET FOR ONE HUNDRED NINETY DOLLARS THE COMPANY SAYS ITS N. Q. ONE HUNDRED CANCELS MORE NOISE AND HAS A LONGER BATTERY LIFE THAN NOISEBUSTER A THIRD COMPANY SENNHEISER ELECTRONICS OLD LYME CONNECTICUT CLAIMS SUBSTANTIALLY MORE NOISE REDUCTION AND BATTERY LIFE FROM ITS NOISGARD HEADSET WHICH RETAILS FOR NINE HUNDRED NINETY DOLLARS TO PARAPHRASE TALLEYRAND ON WAR SCHOOLS ARE MUCH TOO SERIOUS A MATTER TO BE ENTRUSTED ONLY TO THE PRINCIPAL TEACHERS AND STUDENTS SO A GROWING NUMBER OF ARCHITECTS AND PLANNERS ARE DESIGNING SCHOOLS TO PROVIDE SPACE FOR THE PUBLIC BEFORE AFTER AND EVEN DURING THE SCHOOL DAY PENN HIGH SCHOOL IN MISHAWAKA INDIANA HAS A PUBLIC SWIMMING POOL ONE END OF WHICH INCLUDES FEATURES FOR YOUNG CHILDREN AND THE HANDICAPPED THE BUILDER GREINER ENGINEERING IRVING TEXAS ADDED A DAYCARE CENTER FOR CHILDREN OF STUDENTS TEACHERS AND THE PUBLIC THE NEW ELEMENTARY SCHOOL IN CHELSEA MASSACHUSETTS DESIGNED BY HMFH ARCHITECTS CAMBRIDGE IS MEANT TO SERVE THE PUBLIC TWENTY FOUR HOURS A DAY SEVEN DAYS A WEEK TWELVE MONTHS A YEAR SAYS STEPHEN FRIEDLAENDER ONE OF THE ARCHITECTS ON THE PROJECT IT HOUSES HEALTH CLINICS FOR THE NEIGHBORHOOD AND A POLICE SUBSTATION IN NEW YORK A NEW ELEMENTARY SCHOOL IN WASHINGTON HEIGHTS WAS PLANNED JOINTLY BY THE SCHOOL BOARD AND THE CHILDREN'S AID SOCIETY THE SCHOOL HAS MEDICAL AND DENTAL CLINICS FOR STUDENTS AND THEIR FAMILIES AND OUTDOOR LIGHTING SO THE PLAYGROUND CAN BE USED UNTIL LATE AT NIGHT NEW YORK ARCHITECTS GRUZEN SAMPTON ARRANGED THE GYM AUDITORIUM AND LUNCH ROOM SO THEY CAN BE USED DURING NONSCHOOL HOURS WITHOUT OPENING THE WHOLE SCHOOL ONCE IN A WHILE A SIMPLE PRODUCT APPEARS IN THIS WORLD OF HIGH TECH COMPLEXITY DRUMWIC IS AN EIGHT INCH PIECE OF STAINLESS STEEL BENT INTO A HOOK AND LINED WITH FELT WHEN DRAPED OVER THE RIM OF A STEEL DRUM OR BARREL THE DEVICE USES CAPILLARY ATTRACTION AND GRAVITY TO DRAIN WATER NEARLY ONE QUART AN HOUR OFF THE LID WHEN BARRELS ARE RAINED ON THEIR CONTENTS CAN BECOME CONTAMINATED WITH WATER SUCKED IN BY PRESSURE CHANGES OR LEAKED IN THROUGH RUST SOME SEVENTY FIVE MILLION FIFTY FIVE GALLON STEEL DRUMS ARE IN USE IN THE U. S. MOST HOLD CHEMICALS OR PETROLEUM PRODUCTS SOME DRUM OWNERS CHOOSE TO STORE THEM INDOORS AT A HIGH PRICE DRUMWIC WHICH COSTS TWO DOLLARS AND SEVENTY FIVE CENTS A PIECE IS MADE BY LEE TECHNOLOGY HUNTINGTON WEST VIRGINIA LESAC CORPORATION MICHIGAN CITY INDIANA SELLS ITS OWN DRUM WICK A PLAIN PIECE OF FELT WITHOUT METAL BACKING THAT'S GLUED TO THE TOP AND SIDE OF A BARREL THIS DRUM WICK COSTS ONLY FIFTEEN CENTS BUT IT DOESN'T LAST AS LONG AS DRUMWIC AND IT ISN'T REUSEABLE BY FAR THE MOST POPULAR BARREL PROTECTION IS THE PLASTIC OR RUBBER LID WHICH SNAPS OVER THE STEEL DRUM LID LIKE A TUPPERWARE TOP BUT PLASTIC LIDS WHICH COST ABOUT THE SAME AS DRUMWICS ARE UNRELIABLE THE SUN BREAKS THEM DOWN AND THE WINDS SHRED THEM SAYS ED KEIL ENVIRONMENTAL COORDINATOR FOR E. G. AND G. INCORPORATED A ROCKY FLATS COLORADO COMPANY THAT CLEANS UP POLLUTED PLACES MR. KEIL IS USING ONE THOUSAND TWO HUNDRED DRUMWICS AND HAS ORDERED FOUR HUNDRED MORE DRUM PAL A RUBBER LID MADE BY UNIROYAL STANDS UP BETTER THAN PLASTIC BUT COSTS SEVEN DOLLARS AND FIFTY CENTS EACH AND PREVENTS EASY VIEWING OF THE BARREL LABEL IN THE BRAWNY WORLD OF STEEL DRUMS MACHO IMAGE COUNTS FOR A LOT RON MARTINKUS IS PRODUCT MANAGER AT BASCO AN INDUSTRIAL CATALOG HOUSE BASED IN UNIVERSITY PARK ILLINOIS WHILE BASCO WILL SOON BEGIN SELLING DRUMWIC MR. MARTINKUS REMAINS UNCONVINCED A LITTLE PIECE OF FELT DOESN'T APPEAR TO HAVE THE MEAT BEHIND IT HE SAYS QUOTE ALMOST NOBODY PAYS ATTENTION TO THE EDITORIAL WRITERS OF THE WALL STREET JOURNAL QUOTE THIS WAS THE OPINION OF SENATOR DON RIEGLE THE BANKING CHAIRMAN RESPONDING ON C. N. N. TO OUR SUGGESTION LAST WEEK THAT HIS KEATING FIVE PAST MADE IT DOUBTFUL HE COULD HOLD USEFUL HEARINGS INTO WHITEWATER OR MADISON GUARANTY MR. RIEGLE RECENTLY ANNOUNCED THAT HE WOULD NOT SEEK ANOTHER TERM IN THE SENATE A NEWLY CONFIDENT U. S. IS SHIFTING GEARS IN ITS STRATEGY FOR CUTTING ITS AUTO TRADE DEFICIT WITH JAPAN INSTEAD OF CURBING IMPORTS FROM A MIGHTY JAPANESE INDUSTRY AMERICA IS CHAMPIONING THE EXPORTS OF A RESURGENT DETROIT WASHINGTON'S NEW APPROACH TO HANDLING THE MOST SERIOUS ECONOMIC IRRITANT BETWEEN THE TWO NATIONS WAS ON FULL DISPLAY HERE LAST WEEK VISITING CLINTON ADMINISTRATION OFFICIALS SAID THEY WOULD CONSIDER LETTING JAPAN END ITS DECADE OLD QUOTE VOLUNTARY QUOTE QUOTAS ON CAR EXPORTS TO THE U. S. INSTEAD THE U. S. WOULD FOCUS ON DEMANDING BENCHMARKS OF IMPROVED ACCESS TO JAPAN'S MARKET I HAVE A FEELING IT WOULD NOT BE A BIG DEAL IF JAPAN SCUTTLED THE QUOTAS U. S. COMMERCE UNDERSECRETARY JEFFREY E. GARTEN SAID IN AN INTERVIEW OVER THE WEEKEND THE PREOCCUPATION OF THE ADMINISTRATION RIGHT NOW IS HOW TO SELL MORE PARTS AND AUTOS HOW TO GENERATE MORE JOBS IN THE AUTO SECTOR AS A RESULT OF BETTER ACCESS TO THE JAPANESE MARKET JAPANESE OFFICIALS SAID LAST MONTH THEY PLAN TO DROP THE EXPORT QUOTAS THOUGH IT ISN'T CLEAR WHEN THEY WILL DO SO IN A SEPARATE TRADE MATTER U. S. OFFICIALS SAID THEY ARE OPTIMISTIC ABOUT SETTLING A LONG STANDING DISPUTE OVER ACCESS TO JAPAN'S CONSTRUCTION MARKET BY THE JANUARY TWENTIETH DEADLINE THE JAPANESE CABINET IS EXPECTED TO APPROVE A SWEEPING NEW PLAN TO OPEN UP THE BIDDING PROCESS FOR PUBLIC WORKS AS SOON AS TUESDAY THERE ARE STILL SOME THINGS THAT NEED TO BE WORKED OUT BUT FROM WHAT I UNDERSTAND ABOUT THE PLAN IT'S GOING TO BE FAIRLY GOOD A SENIOR U. S. GOVERNMENT OFFICIAL SAID SUNDAY SCUTTLING THE CAR EXPORT LIMITS WOULDN'T BE MUCH OF A CONCESSION ON WASHINGTON'S PART JAPANESE AUTO MAKERS LAST FILLED THEIR QUOTA IN NINETEEN EIGHTY SIX WHAT'S MORE THE U. S. STILL PLAYS AGGRESSIVE DEFENSE IN TRADE RETAINING THE RIGHT TO PROTECT INDUSTRIES WITH ANTIDUMPING TARIFFS AND MANIPULATING CURRENCY RATES TO MAKE JAPANESE GOODS MORE EXPENSIVE IN THE U. S. STILL THE MOOD HAS CLEARLY CHANGED JUST TWO YEARS AGO PRESIDENT BUSH AND DETROIT EXECUTIVES CAME TO JAPAN IN WHAT WAS WIDELY PORTRAYED AS A HUMILIATING MISSION TO BEG FOR MERCY FROM UNSTOPPABLE COMPETITORS THE TONE WAS RADICALLY DIFFERENT LAST WEEK WHEN MR. GARTEN AND UNDERSECRETARY OF STATE JOAN SPERO CAME TO NEGOTIATE GREATER U. S. ACCESS TO JAPAN'S MARKETS FOR AUTOS MEDICAL AND TELECOMMUNICATIONS EQUIPMENT AND INSURANCE IN ONE SPEECH MS. SPERO CALLED THE U. S. THE WORLD'S GREATEST EXPORT MACHINE AND COMPARED AMERICA'S ROBUST GROWTH WITH THE SLUGGISH JAPANESE AND EUROPEAN ECONOMIES SHE ADVISED JAPAN TO FOLLOW THE U. S. LEAD IN DEREGULATION QUOTE WILL YOU QUOTE SHE ASKED JAPAN AND EUROPE QUOTE BE ABLE TO COMPETE IN THE FUTURE WITH THE NEW AMERICAN ECONOMY WE ARE CREATING IF YOU DO NOT MAKE STRUCTURAL CHANGES QUOTE WASHINGTON'S CONFIDENCE DOESN'T HOWEVER MEAN THAT TRADE TENSIONS HAVE EVAPORATED THE U. S. AND JAPAN ARE TRYING TO HAMMER OUT A BROAD NEW FRAMEWORK FOR CUTTING THE BILATERAL TRADE IMBALANCE THE TWO SIDES ARE COMMITTED TO REACHING AN AGREEMENT BY FEBRUARY ELEVENTH WHEN PRIME MINISTER MORIHIRO HOSOKAWA IS SCHEDULED TO MEET WITH PRESIDENT CLINTON IN WASHINGTON BUT NEGOTIATORS FROM BOTH SIDES SAY THEY ARE STILL FAR APART ON BASIC PHILOSOPHICAL ISSUES THE U. S. WANTS NUMERICAL BENCHMARKS TO PROMOTE U. S. EXPORTS TO JAPAN THE JAPANESE OBJECT TO THAT AS MANAGED TRADE DESPITE THE IMPASSE JAPAN IS MAKING SOME CONCILIATORY GESTURES ON FRIDAY A NISSAN MOTOR COMPANY SALES AFFILIATE SAID IT INTENDS TO BEGIN MARKETING FORD MOTOR COMPANY VEHICLES THIS SPRING ON SATURDAY THE LOCAL PRESS REPORTED THAT TOYOTA DEALERS ALSO ARE THINKING ABOUT SELLING FORD CARS IN JAPAN GREATER ACCESS TO JAPANESE DEALERSHIPS FOR BIG THREE CARS IS A KEY U. S. DEMAND IN RECENT YEARS THE BIG THREE HAVE BEEN SEEN IN JAPAN AS SYMBOLS OF U. S. ECONOMIC DECLINE LATELY HOWEVER DETROIT'S IMAGE HAS IMPROVED THE CLEAREST EVIDENCE OF A NEW JAPANESE RESPECT FOR U. S. INDUSTRY IS A PUBLIC FASCINATION WITH CHRYSLER CORPORATION'S NEON A PUNCHY BARGAIN PRICED COMPACT CAR THAT JUST WENT ON SALE IN THE U. S. THE JAPANESE PRESS HAS DUBBED THE NEON THE JAPAN CAR KILLER NEON'S CELEBRITY IS PART OF A WIDER POPULAR REASSESSMENT OF U. S. POWER THE COVER OF THIS WEEK'S NIKKEI BUSINESS MAGAZINE DEPICTS A LEAN AND MEAN UNCLE SAM TOWERING OVER ASIA THE DRAWING ILLUSTRATES A STORY TITLED RISING SAM ABOUT U. S. POLICY OF CONTAINING JAPAN AND OPENING MARKETS IN ASIA LAST YEAR FORD CHRYSLER AND GENERAL MOTORS CORPORATION HAD A COMBINED TWO POINT NINE PERCENT SHARE OF THE JAPANESE VEHICLE MARKET JAPANESE AUTO MAKERS' SHARE OF THE U. S. MARKET IS ABOUT TEN TIMES THAT LARGE TRADE IN AUTOS AND AUTO PARTS ACCOUNTS FOR ROUGHLY TWOTHIRDS OF THE U. S. FIFTY BILLION DOLLAR TRADE DEFICIT WITH JAPAN JACOB M. SCHLESINGER CONTRIBUTED TO THIS ARTICLE COULD GOLD RACE PAST FIVE HUNDRED DOLLARS AN OUNCE THIS YEAR MOST BULLION DEALERS AND ANALYSTS DOUBT IT AND ARE EXPECTING A NINETEEN NINETY FOUR TRADING RANGE OF THREE HUNDRED SIXTY DOLLARS TO FOUR HUNDRED FIFTY DOLLARS BUT A FEW ANALYSTS CONTEND THAT THE PRECIOUS METALS MARKET IS MISJUDGING THE POTENTIAL FIREPOWER OF INVESTORS GOLD FOR FEBRUARY DELIVERY SETTLED FRIDAY AT NEW YORK'S COMMODITY EXCHANGE AT THREE HUNDRED NINETY DOLLARS AND TEN CENTS AN OUNCE DOWN FIFTY CENTS QUOTE EXCESS LIQUIDITY IN WORLD FINANCIAL MARKETS WILL CONTINUE TO DRIVE GOLD HIGHER QUOTE PREDICTS MICHAEL HOWELL HEAD OF THE GLOBAL STRATEGY UNIT AT BARING SECURITIES MR. HOWELL WHO PREVIOUSLY STUDIED LIQUIDITY TRENDS FOR SALOMON BROTHERS ISN'T A SPECIALIST ON GOLD INSTEAD HE ANALYZES GLOBAL FINANCIAL FLOWS ALMOST ALL THE MAJOR CENTRAL BANKS NOW HAVE LOOSE MONETARY POLICIES MR. HOWELL SAYS SWIRLING MONEY FIRST INFLATES THE PRICES OF STOCKS AND BONDS THEN PRICES OF GOODS FOLLOW SUIT HE SAYS THE GOLD PRICE TREND IS DETERMINED BY WORLD INFLATION BUT THE EXTENT OF THE CYCLE IS DETERMINED BY FLOWS OF FUNDS MR. HOWELL SAYS AND EXCESS LIQUIDITY IS ALREADY DRIVING GOLD HIGHER HE SAYS IN PREVIOUS GOLD BULL MARKET CYCLES BUOYANT LIQUIDITY PUSHED GOLD WAY ABOVE ITS REAL WORTH MR. HOWELL SAYS OTHER ANALYSTS CONTEND THAT SPECULATIVE FLOWS INTO GOLD AND OTHER COMMODITIES CAN AT BEST ONLY DRIVE PRICES UP TEMPORARILY HIGH PRICES THEN CRIMP PURCHASES OF MANUFACTURERS THAT USE THE COMMODITIES AS RAW MATERIALS MEANWHILE PRODUCERS AND HOLDERS OF SURPLUS INVENTORIES RAPIDLY TAKE ADVANTAGE OF HIGHER PRICES BY SELLING ANALYSTS SAY AND ALL THIS EXERTS DOWNWARD PRESSURE ON PRICES A MASSIVE GOLD PRICE SURGE SIMILAR TO THE EARLY EIGHTIES WOULD DAMAGE THE DEMAND FOR PHYSICAL GOLD FROM JEWELERS AND HOARDERS SAYS TED ARNOLD METALS ANALYST AT MERRILL LYNCH AND THESE BUYERS HE SAYS ACCOUNT FOR THE BULK OF GOLD PURCHASES FOLLOWING THE GOLD PRICE RISE OF RECENT MONTHS PHYSICAL DEMAND IS ALREADY DROPPING LIKE A STONE MR. ARNOLD SAYS DEMAND IS SLUMPING IN CHINA JAPAN AND THE REST OF THE FAR EAST HE SAYS HIGHER PRICES AND RECESSION ARE ALSO CURBING ORDERS OF THE HUGE ITALIAN JEWELRY INDUSTRY A SWISS BULLION MANAGER SAYS MOREOVER CURRENCY WEAKNESS IS MAKING GOLD EVEN MORE EXPENSIVE FOR EUROPEAN CONSUMERS WHO ARE STILL CAUGHT IN RECESSION HE SAYS ADDS FRITZ PLASS DIRECTOR IN CHARGE OF DEUTSCHE BANK A. G.'S PRECIOUS METALS OPERATIONS PRODUCER INVENTORIES ARE HIGH AND IF THE PRICE SURGED ABOVE FOUR HUNDRED DOLLARS THEY WOULD SELL MORE GOLD CENTRAL BANKS ARE ALSO LIKELY TO BE SELLERS AT HIGHER PRICES HE SAYS TO BE SURE A STUDY BY GOLD FIELDS MINERALS SERVICES A CONSULTANCY OWNED BY U. S. SOUTH AFRICAN AND AUSTRALIAN MINES ESTIMATES THAT NET GOLD SALES OF CENTRAL BANKS TOTALED FOUR HUNDRED FORTY METRIC TONS LAST YEAR A METRIC TON IS TWO THOUSAND TWO HUNDRED FOUR POINT SIX TWO POUNDS THIS IS EQUIVALENT TO THIRTEEN PERCENT OF TOTAL NINETEEN NINETY THREE SUPPLIES SAYS THE REPORT SALES WERE BELOW AN EXCEPTIONALLY HIGH FIVE HUNDRED EIGHTY TWO TONS IN NINETEEN NINETY TWO BUT THEY ILLUSTRATE THAT CENTRAL BANKS REMAIN ACTIVE IN THE MARKET SAYS THE CONSULTANCY NEVERTHELESS THE ABILITY OF GOLD CONSUMERS AND INVESTORS TO ABSORB MORE THAN ONE THOUSAND TONS OF CENTRAL BANK GOLD IN THE PAST TWO YEARS QUOTE SUGGESTS THAT THE MARKET IS ROBUST QUOTE SAYS STEWART MURRAY CHIEF EXECUTIVE OF GOLD FIELDS HE SAYS THAT GOLD'S INFLATION ADJUSTED VALUE SINCE NINETEEN THIRTY FIVE SHOULD BE BASED ON U. S. PRICE FIGURES ON THIS BASIS THE REAL WORTH OF GOLD IS THREE HUNDRED SEVENTY SEVEN DOLLARS BELOW PRESENT PRICES OF THREE HUNDRED EIGHTY NINE DOLLARS ALL THE SAME MR. MURRAY AGREES THAT THE WEIGHT OF FUNDS FROM FINANCIAL MARKETS COULD EASILY PUSH GOLD UP THE PRICE CAN MOVE RAPIDLY BECAUSE THE MARKET IS TINY WHEN COMPARED TO BOND AND EQUITY MARKETS MR. MURRAY SAYS INVESTMENT DEMAND IN NINETEEN NINETY THREE WAS THE HIGHEST SINCE THE PERSIAN GULF WAR MR. MURRAY SAYS YET GOLD PRODUCTS SUCH AS WARRANTS MUST BE DEVELOPED TO ATTRACT PENSION AND MUTUAL FUNDS HE SAYS OTHERWISE LAST YEAR'S INVESTMENT BUYING MIGHT TURN OUT TO BE JUST A PASSING FASHION FOR SHORT TERM SPECULATIVE CASH HE SAYS UNTIL NOW THE LARGER PENSION AND MUTUAL FUNDS PREFERRED TO LIMIT THEIR EXPOSURE TO GOLD STOCKS MR. MURRAY SAYS YET GOLD STOCKS SOARED BY A FAR GREATER EXTENT THAN THE METAL LAST YEAR SO ON A RELATIVE BASIS GOLD METAL REPRESENTS BETTER VALUE HE ASSERTS FOR BETTER OR WORSE THE WORKPLACE HAS BECOME THE EATPLACE THAT'S MADE LIFE INTERESTING FOR THE COLLEAGUES OF DAVID MORRIS MARKETING DIRECTOR OF A REAL ESTATE DEVELOPER IN NEW JERSEY MR. MORRIS LIKES COLD SPAGHETTI TOPPED WITH SLICED RAW ONION OR A TUNA SANDWICH DOUSED WITH HOT SAUCE FOR BREAKFAST THAT WOULD BE FINE IF HE WERE CHOMPING IN PRIVACY BUT MR. MORRIS EATS THE STUFF IN THE OPEN QUOTE THE SMELL GROSSES ME OUT IN THE MORNING WHEN HE EATS TUNA FISH OR CHILI WITH HOT SAUCE QUOTE COMPLAINS JULIE HOFFMAN A BOOKKEEPER WHO ASKED THAT HER DESK BE MOVED OUT OF NOSE SHOT MANY EMPLOYEES ON TIGHT BUDGETS AND WORKING LONGER HOURS AS A RESULT OF CORPORATE CUTBACKS ARE HAVING BREAKFAST LUNCH AND DINNER AT THEIR DESKS NATIONAL EATING TRENDS A SURVEY CONDUCTED BY N. P. D. GROUP A CHICAGO MARKET RESEARCH CONCERN SAYS THE NUMBER OF MEALS TAKEN TO OFFICES FROM RESTAURANTS HAS RISEN TWENTY NINE PERCENT IN THE PAST DECADE AND IT'S NOT JUST SANDWICHES IN LOS ANGELES A DELIVERY SERVICE CALLED WHY COOK RECENTLY TRANSPORTED FOUR HUNDRED EIGHTY DOLLARS OF SUSHI TO FIFTEEN INVESTMENT BANKERS WORKING LATE ONE NIGHT MANAGERS ARE OF TWO MINDS ABOUT THE PHENOMENON ON THE ONE HAND EATING IN IS SUPPOSEDLY MORE EFFICIENT BECAUSE EMPLOYEES CAN WORK AS THEY DINE BUT CLIENTS WHO DROP BY ARE GREETED BETWEEN BITES MEMOS ARE CIRCULATED WITH PHOTOCOPIED MUSTARD SMUDGES LEFTOVERS ROT IN THE REFRIGERATOR TRASH CANS LEAK SAUCES THE OTHER DAY WE HAD THAI FOOD AND THE TRASH WASN'T REMOVED THE NEXT DAY IT WAS HARD TO WALK IN THE OFFICE IT SMELLED SO BAD SAYS KRISTIN HAHN AN INDEPENDENT PRODUCER IN LOS ANGELES SOME COMPANIES HAVE GONE SO FAR AS TO FORBID EMPLOYEES TO EAT IN THE OFFICE WHITE AND CASE A NEW YORK LAW FIRM ESTABLISHED A NO DESK EATING POLICY FOR A VARIETY OF DIFFERENT REASONS BOTH OFFICE APPEARANCE AND INSECTS AND RODENT PROBLEMS WE'D PREFER NOT TO HAVE THEM EAT AT THEIR DESKS BUT WE HAVE A CAFETERIA SAYS TIM GOODELL ADMINISTRATIVE PARTNER JANITORS WOULDN'T MIND A UNIVERSAL NO OFFICE EATING EDICT INFESTATION BY MICE AND BUGS IS BAD ENOUGH BUT ALMOST AS TROUBLESOME ARE THE DAILY MESSES LIKE THE POPCORN AND MUFFIN CRUMBS GROUND INTO THE CARPET HOLIDAYS ARE THE WORST WITH ENDLESS COOKIE TRAYS AND CATERED OFFICE PARTIES PEOPLE EAT A PAPER PLATE OF RIGATONI OR CHICKEN WINGS AT THEIR DESK THROW IT IN THE GARBAGE CAN AND HIT THE RIM IT BOUNCES ON THE FLOOR AND THEY LEAVE IT QUOTE LAMENTS RICHARD SEIGFREID OF ARCADE MAINTENANCE INCORPORATED IN PITTSBURGH THEN THERE ARE LEFTOVERS OFTEN STASHED IN THE OFFICE REFRIGERATOR FOR A FUTURE LUNCH BUT INVARIABLY THEY ARE FORGOTTEN FOR DAYS EVEN WEEKS RESULTING IN A GREEN MOLDY SLIMY SMELLY MESS SAYS MR. SEIGFREID EMPLOYEES CONCEDE THAT SPENDING HOURS AGONIZING OVER TAKEOUT DECISIONS CAN ACTUALLY CUT INTO THEIR PRODUCTIVITY DAVID BENNETT A SENIOR ACCOUNTANT WITH A NEW JERSEY TOY MANUFACTURER SAYS HE AND HIS CO WORKERS START DEBATING RESTAURANT CHOICES AROUND ELEVEN A. M. PLACE THEIR ORDERS AFTER NOON AND WAIT UNTIL TWO THIRTY FOR THE FOOD BY THAT TIME WE'RE DYING OF HUNGER HE SAYS BUT PROPONENTS SAY THAT WHEN DONE PROPERLY EATING IN THE OFFICE ADDS TO CAMARADERIE AND MORALE SUSAN ZIGOURAS A NUTRITIONIST AND PSYCHOTHERAPIST IN NEW YORK SAYS THAT IN MANY HOUSEHOLDS MEALTIME IS STILL ASSOCIATED WITH FAMILY AND TOGETHERNESS THUS SHARING TAKEOUT WITH COLLEAGUES AND BOSSES CAN FEEL LIKE A WAY OF BEING NURTURED SHE SAYS THAT'S ONE REASON WHY ANN MARIE SABATH OF AT EASE INCORPORATED A CINCINNATI BUSINESS ETIQUETTE TRAINING COMPANY SAYS IT'S VERY IMPORTANT WHEN GOING OUT FOR FOOD TO MAKE SURE YOU ASK CO WORKERS IF YOU CAN BRING SOMETHING BACK MS. SABATH HAS MORE AT DESK EATING TIPS IF YOU HAVE AN OFFICE CLOSE THE DOOR IF YOU HAVE A CUBICLE TURN YOUR BACK TO THE OPENING AND STOP EATING IF SOMEONE COMES BY AND NEVER CHEW ON THE PHONE NOT EVERYONE LIVES BY THOSE RULES OF COURSE ESPECIALLY THOSE WHO LIVE ON THE PHONE OR ON THE AIR GARY MOORE WHO DOES THE MORNING RUSH HOUR SHOW FOR A LOS ANGELES ROCK STATION SAYS WHEN HE WANTS TO CHOW DOWN HE PLAYS EXTRA LONG SONGS LIKE LED ZEPPELIN'S STAIRWAY TO HEAVEN I KNOW THE SONGS WELL ENOUGH THAT I FINISH UP BUT A COUPLE TIMES I'VE HAD TO SWALLOW PRETTY FAST SAYS MR. MOORE WHO USUALLY DRINKS COKE AND EATS FRUIT DURING HIS FOUR HOUR DAILY STINT LINDA SWARTZ A TAX ATTORNEY WITH MILBANK TWEED HADLEY AND MCCLOY NEW YORK HAS HER OWN TECHNIQUE FOR HIDING THE FACT THAT SHE'S EATING ON THE PHONE YOU LIFT THE MOUTHPIECE OF YOUR PHONE YOU PIVOT IT ON YOUR EAR SO THE MOUTHPIECE IS NEAR THE HAIRLINE WHILE YOU CHEW AND YOU PIVOT IT BACK DOWN TO SPEAK SHE SAYS QUOTE IF YOU'RE ON A SPEAKERPHONE HIT THE MUTE BUTTON WHILE YOU CHEW QUOTE ACTUALLY SHE CONFESSES SHE LEARNED HER NOSHING TECHNIQUES FROM A COLLEAGUE I WATCHED A TAX PARTNER DO THAT WHEN I WAS A JUNIOR AND THOUGHT THAT WAS A GOOD IDEA SHE SAYS ERIC HASSERJIAN A MARKETING DIRECTOR OF A SANTA MONICA CALIFORNIA OFFICE DEVELOPMENT CALLED THE WATER GARDEN TAKES THIS APPROACH IF I'M ON HOLD I'LL TAKE A SMALL BITE SO IF THEY COME BACK ON I CAN GET AWAY WITH HAVING FOOD IN MY MOUTH THE TWENTY NINE YEAR OLD NIBBLES COOKIES CHEESE AND CRACKERS ALL DAY ON TOP OF MY THREE MEALS POSITIONING HIS TRASH CAN BETWEEN HIS KNEES TO CATCH CRUMBS PREVENTING MESSY SOUPS AND SALAD DRESSINGS FROM SPOILING IMPORTANT DOCUMENTS TAKES EXTRA THOUGHT MR. HASSERJIAN SPREADS A NEWSPAPER ON MY DESK COVERING THE PAPERWORK THEN I USE THAT AS MY PLACEMAT IT ALSO ENTERTAINS ME BECAUSE I CAN READ IT WHILE EATING FOR SOME A CERTAIN LEVEL OF SLOPPINESS IS UNAVOIDABLE QUOTE I HAVE A FEW DOCUMENTS SMEARED WITH FOOD HERE QUOTE ADMITS PRODUCER MS. HAHN ADDING QUICKLY QUOTE BUT THEY AREN'T GOING OUT QUOTE OF THE OFFICE COMPUTER KEYBOARDS ARE ALSO NOT EATER FRIENDLY CRUMBS COFFEE AND SOFT DRINKS CAN MAKE KEYS STICK AND GUM UP COMMANDS WE COULD OPEN UP A KEYBOARD AND LIVE FOR A WEEK OFF WHAT WE FIND IN THAT THING SAYS STEVE GRAY MANAGER OF THE ELECTRONICS DEPARTMENT AT THE OMAHA WORLD HERALD MR. GRAY SAYS EMPLOYEES RARELY CONFESS TO SPILLING BREAKFAST ON THEIR KEYBOARDS THEY'LL BRING IT IN TO BE FIXED AND WE'LL ASK THEM DID YOU SPILL SOMETHING INTO IT OH NO THEY'LL SAY NOT THAT I KNOW OF WE'LL OPEN IT UP AND YOU COULD PLANT POTATOES IN SOME OF THEM A BIGGER PROBLEM MAY BE WHAT'S CREEPING INTO THE OFFICE THE PLASTIC BAGS IN THE TRASH CANS LEAK AND FOOD IS LEFT ON THE BOTTOM SAYS DAVE DUFFY PRESIDENT OF PITTSBURGH'S CENTRAL MAINTENANCE AND SERVICE COMPANY YOU GET AN ODOR AND FLIES COME AND EVENTUALLY THE JANITOR HAS TO CLEAN OUT THE CONTAINER SOMETIMES YOU HAVE TO TREAT THE SPACE WITH AN EXTERMINATOR QUOTE BUT MR. MORRIS OF THE SPAGHETTI AND ONION BREAKFASTS SAYS HE ISN'T ABOUT TO CHANGE HIS EATING HABITS EVEN THOUGH HE RECENTLY HAD SUCH SEVERE HEARTBURN FROM A PUNGENT SPAGHETTI BREAKFAST THAT HE FEARED HE WAS HAVING A HEART ATTACK AND DASHED TO THE HOSPITAL IT WAS JUST INDIGESTION MR. MORRIS SAYS THE DOCTOR ADVISED ME AGAINST EATING SPAGHETTI IN THE MORNING BUT I KEEP EATING IT FOR BREAKFAST IN MY OFFICE I'M HOPELESS METALLGESELLSCHAFT A. G.'S ONE HUNDRED TWENTY BANK CREDITORS PULLED THE BIG GERMAN COMPANY BACK FROM AN IMMINENT BANKRUPTCY LAW FILING BY AGREEING TO A RESCUE PACKAGE TOTALING ABOUT ONE POINT NINE BILLION DOLLARS THE THREE POINT FOUR BILLION MARK ACCORD REACHED ON SATURDAY INCLUDES A BIGGER CASH CONTRIBUTION TO THE PLAN FROM DEUTSCHE BANK A. G. AND DRESDNER BANK A. G. IN ORDER TO OVERCOME OPPOSITION FROM FRENCH BANKS METALLGESELLSCHAFT SAID THAT QUOTE A FEW QUOTE FINAL APPROVALS WERE STILL FORTHCOMING INCLUDING FROM SOME U. S. CREDITORS BUT IT DECLARED THAT AN AGREEMENT HAD BEEN REACHED WITH THE SUPPORT OF THE BANKS METALLGESELLSCHAFT HAS A FINANCIAL FOOTING WHICH OPENS UP NEW PERSPECTIVES FOR US SAID KAJO NEUKIRCHEN THE NEW CHAIRMAN OF THE METALS ENGINEERING AND TRADING COMPANY HE SAID THE ACCORD CLEARS THE WAY FOR A SWEEPING RESTRUCTURING OF METALLGESELLSCHAFT WHICH IS GERMANY'S FOURTEENTH LARGEST INDUSTRIAL GROUP WITH FIFTY EIGHT THOUSAND EMPLOYEES WORLD WIDE BANKERS SAID SUPPORT FOR THE PLAN WAS IN PART A VOTE OF CONFIDENCE IN MR. NEUKIRCHEN A CORPORATE TURNAROUND SPECIALIST WHO WAS APPOINTED LAST MONTH TO SUCCEED THE COMPANY'S OUSTED CHAIRMAN HEINZ SCHIMMELBUSCH THE REORGANIZATION IS TO INCLUDE THE SALE OF METALLGESELLSCHAFT'S FORTY NINE PERCENT INTEREST IN KOLBENSCHMIDT A. G. AN AUTO PARTS SUPPLIER AS WELL AS A DUTCH TRADING COMPANY AND SOME OF ITS INTERNATIONAL MINING ACTIVITIES INCLUDING TORONTO'S METALL MINING CORPORATION IN THE FISCAL YEAR ENDED LAST SEPTEMBER THIRTIETH THE GERMAN COMPANY INCURRED ONE POINT EIGHT BILLION MARKS IN LOSSES FROM OPERATIONS AND A FURTHER ONE POINT FIVE BILLION MARKS IN LOSSES FROM ITS EXPOSURE IN THE OIL MARKETS SALES TOTALED ABOUT TWENTY SIX BILLION MARKS THE OIL RELATED LOSSES CAME FROM METALLGESELLSCHAFT'S INVOLVEMENT IN ENERGY DERIVATIVES FINANCIAL CONTRACTS WHOSE VALUES ARE DERIVED FROM THE PRICE OF CRUDE OIL AND OTHER ENERGY PRODUCTS THE LOSSES APPARENTLY STEMMED FROM AN ILL FATED ATTEMPT BY M. G. CORPORATION METALLGESELLSCHAFT'S U. S. TRADING UNIT TO HEDGE ITS BUSINESS RISKS AS A WHOLESALER OF OIL PRODUCTS THE BAILOUT PLAN FOR M. G.'S PARENT COMPANY IS EXPECTED TO ALLEVIATE CONCERNS ON THE ENERGY FUTURES MARKET THAT M. G. MIGHT HAVE TO LIQUIDATE LARGE FUTURES POSITIONS ON THE NEW YORK MERCANTILE EXCHANGE AS THE BANKS NEGOTIATED THE RESCUE PLAN A U. S. AFFILIATE OF METALLGESELLSCHAFT CASTLE ENERGY CORPORATION WARNED FRIDAY THAT THE GERMAN COMPANY'S FINANCIAL DIFFICULTIES COULD HAVE A MATERIAL ADVERSE EFFECT ON CASTLE THE RADNOR PENNSYLVANIA ENERGY COMPANY RECEIVES FINANCING AND CREDIT SUPPORT FROM METALLGESELLSCHAFT SATURDAY'S REFINANCING AGREEMENT FORESEES A NEW SHARE OFFERING THAT WOULD RAISE ONE POINT FOUR BILLION MARKS THE OFFERING PLAN ALREADY HAS BEEN TENTATIVELY ACCEPTED BY METALLGESELLSCHAFT SHAREHOLDERS CONTROLLING SIXTY TWO PERCENT OF THE COMPANY'S STOCK THOSE SHAREHOLDERS INCLUDE DEUTSCHE BANK DRESDNER BANK THE AUTO MAKER DAIMLER BENZ A. G. THE INSURANCE COMPANY ALLIANZ A. G. AND THE GOVERNMENT OF KUWAIT UNTIL SATURDAY THE STICKING POINT IN THE BAILOUT HAD BEEN GETTING BANKS TO APPROVE THE CREDIT RESTRUCTURING PART OF THE PACKAGE UNDER THE COMPANY'S PROPOSAL BANKS WERE ASKED TO CONVERT ONE POINT THREE BILLION MARKS IN METALLGESELLSCHAFT BANK DEBT INTO CONVERTIBLE PROFIT SHARING CERTIFICATES THEY ALSO WILL EXTEND A NEW SEVEN HUNDRED MILLION MARK CREDIT LINE THE WHOLE CONCEPT AS IT WAS PRESENTED IS INTACT IT'S JUST THAT THE DISTRIBUTION HAS CHANGED A LITTLE BIT SAID A DEUTSCHE BANK OFFICIAL WHO ATTENDED THE SATURDAY MEETING TO MAKE IT WORK DEUTSCHE BANK AND DRESDNER BANK HAD TO REACH DEEPER INTO THEIR POCKETS AFTER A GROUP OF GERMAN AND FOREIGN BANKS LAST WEEK THREATENED TO REJECT THE PLAN UNLESS THE TWO BIG FRANKFURT BANKS PICKED UP A BIGGER SHARE OF THE BILL AFTER PROVIDING METALLGESELLSCHAFT WITH A ONE POINT FIVE BILLION MARK STANDBY CREDIT IN DECEMBER DEUTSCHE BANK AND DRESDNER BANK PREVIOUSLY HAD HELD THAT IT WAS UP TO THE OTHER BANKS TO PUT UP THE SEVEN HUNDRED MILLION MARKS FOR THE NEW CREDIT LINE BUT MANY OF THEM INCLUDING FRENCH CREDITORS REFUSED TO LET DEUTSCHE BANK AND DRESDNER BANK OFF THE HOOK SATURDAY DEUTSCHE BANK AND DRESDNER BANK BACKED DOWN AND AGREED TO PROVIDE NEARLY ONE HALF OF THE SEVEN HUNDRED MILLION MARK TOTAL ACCORDING TO A PARTICIPANT AMONG OTHER CONCESSIONS DEUTSCHE BANK AND DRESDNER BANK ALSO HAD TO STEP IN AND FILL GAPS IN THE PROPOSED DEBT FOR EQUITY SWAP LEFT BY SOME OF THE FOREIGN BANKS WHICH DISAGREED WITH THE ARRANGEMENT IN ADDITION THE NEW RIGHTS ISSUE IS TO BE GUARANTEED BY A GROUP OF MAJOR BANK CREDITORS IN THE END EVEN THOSE WHO INITIALLY DIDN'T WANT TO PLAY ALONG REALIZED WHAT THE MAIN POINT WAS THAT WE WERE TALKING ABOUT METALLGESELLSCHAFT WHICH WAS TOO GOOD A COMPANY TO GO UNDER MAYBE IT WILL TAKE TWO YEARS OR MORE BUT IT CAN MAKE MONEY AGAIN QUOTE SAID A DEUTSCHE BANK OFFICIAL AFTER POSTING RECORD SALES AND PROFITS IN LATIN AMERICA FOR NINETEEN NINETY THREE GENERAL MOTORS CORPORATION IS DOUBLING CAPITAL SPENDING THERE IN A BID TO SEIZE MARKET LEADERSHIP FROM VOLKSWAGEN A. G. QUOTE WE HAD AN ELEPHANT QUOTE OF A YEAR SAID RICHARD C. NEROD G. M. VICE PRESIDENT FOR LATIN AMERICA WITHOUT DISCLOSING FIGURES MR. NEROD SAID IN AN INTERVIEW THAT G. M.'S NET INCOME IN LATIN AMERICA FOR NINETEEN NINETY THREE SUBSTANTIALLY SURPASSED NINETEEN NINETY TWO'S RECORD OF TWO HUNDRED NINE POINT FIVE MILLION DOLLARS THE FIGURES EXCLUDE MEXICO WHICH G. M. CONSIDERS PART OF ITS NORTH AMERICAN OPERATIONS THANKS TO ECONOMIC RECOVERY TRADE LIBERALIZATION AND OTHER FACTORS THE REGION HAS BEEN A BRIGHT SPOT IN THE WORLD AUTO INDUSTRY WITH THE U. S. MARKET IN A SLOW RECOVERY AND EUROPE IN DEEP RECESSION IN THE FIRST HALF G. M. ATTRIBUTED A THIRTY PERCENT GAIN IN OVERSEAS AUTO OPERATIONS EARNINGS TO SPECTACULAR RESULTS IN LATIN AMERICA G. M.'S VEHICLE SALES IN LATIN AMERICA SOARED THIRTY NINE PERCENT LAST YEAR TO FOUR HUNDRED SIX THOUSAND UNITS MR. NEROD SAID HE ADDED THAT DOLLAR SALES WERE UP SUBSTANTIALLY MORE THAN THAT BECAUSE G. M. WAS ABLE TO SELL MORE HIGHER PRICED VEHICLES THAN IN NINETEEN NINETY TWO MR. NEROD ALSO ATTRIBUTED HIGHER PROFITABILITY LAST YEAR IN LATIN AMERICA TO TIGHT COST CONTROLS HIGHER PLANT PRODUCTIVITY EFFICIENT NEW MODEL LAUNCHES AND MODEST INVESTMENT IN NEWVEHICLE PROGRAMS THE NINETEEN NINETY THREE RESULTS STILL LEFT G. M. NUMBER TWO IN THE REGION WITH ABOUT EIGHTEEN PERCENT OF THE MARKET COMPARED WITH V. W.'S TWENTY ONE PERCENT OR SO IN OUTLINING HIS PLANS FOR THE NEXT FIVE YEARS MR. NEROD SAID WE WANT TO BECOME NUMBER ONE BY THE END OF THAT PERIOD THOUGH HE CAUTIONED THAT WE WON'T DO ANYTHING CRAZY TO DO THAT MR. NEROD SAID G. M. PLANS TO MORE THAN DOUBLE CAPITAL SPENDING IN THE REGION OVER THE NEXT FIVE YEARS TO ABOUT TWO BILLION DOLLARS HE SAID THOSE FUNDS WILL BE INTERNALLY GENERATED COMING ON TOP OF EXPECTED DIVIDENDS BACK TO THE PARENT COMPANY THE MONEY WILL GO INTO MODERNIZED PRODUCT LINES AND ADDITIONAL ASSEMBLY CAPACITY IN ARGENTINA BRAZIL AND ELSEWHERE HE SAID THE INVESTMENT WE ARE LOOKING AT IS TO SUSTAIN OUR POSITION IN THE FACE OF EXPECTED NEW COMPETITION MR. NEROD SAID SUCH JAPANESE CAR MAKERS AS TOYOTA MOTOR CORPORATION NISSAN MOTOR COMPANY AND HONDA MOTOR COMPANY ARE EXPECTED TO BEEF UP THEIR LATIN AMERICAN OPERATIONS HE SAID ADDING THAT NEW COMPETITION FROM LOW COST KOREAN IMPORTS IS ALSO LIKELY CONSEQUENTLY G. M.'S LATIN AMERICAN OPERATION WILL HAVE TO OFFER FRESHER PRODUCTS MORE FREQUENTLY THAN IN THE PAST MR. NEROD SAID LATIN AMERICAN UNITS OF THE WORLD'S CAR MAKERS HAVE OFTEN CONTINUED SELLING SOME MODELS SUCH AS THE CHEVROLET CHEVETTE AND THE V. W. BEETLE LONG AFTER DISCONTINUING THEM ELSEWHERE WITH STIFFER COMPETITION WE CAN'T DO THAT ANYMORE MR. NEROD SAID FOR THIS YEAR MR. NEROD IS FORECASTING A SLIGHT EASING OF THE TOTAL LATIN AMERICAN MARKET INCLUDING MEXICO TO TWO POINT FIVE MILLION OR TWO POINT SIX MILLION VEHICLES COMPARED WITH LAST YEAR'S RECORD TWO POINT EIGHT MILLION SALES BUT HE PREDICTED THAT THE MARKET WOULD RESUME ITS EXPANSION AND HIT THREE POINT TWO MILLION UNITS BY TWO THOUSAND JAPAN INCORPORATED IS ABOUT TO GET A NEW FACE SHOICHIRO TOYODA CHAIRMAN OF TOYOTA MOTOR COMPANY HAS BEEN OFFERED THE CHAIRMANSHIP OF KEIDANREN JAPAN'S LEADING BIG BUSINESS LOBBY MR. TOYODA SIXTY EIGHT YEARS OLD SAID IN A STATEMENT FRIDAY THAT HE IS CONSIDERING THE OFFER AND HE IS WIDELY EXPECTED TO ACCEPT MR. TOYODA NOW VICE CHAIRMAN OF KEIDANREN WOULD SUCCEED GAISHI HIRAIWA SEVENTY NINE WHO HAS SERVED IN THE POST FOR THREE YEARS MR. TOYODA'S APPOINTMENT MARKS A SYMBOLIC CHANGING OF THE GUARD FOR JAPAN'S STODGY BUSINESS COMMUNITY ALTHOUGH JAPAN'S AUTO INDUSTRY HAS RISEN TO INTERNATIONAL PROMINENCE OVER THE PAST TWO DECADES THE INTERNATIONALLY ORIENTED CAR MAKERS EVEN CONSERVATIVE TOYOTA WERE A BIT TOO INDEPENDENT FOR JAPAN INCORPORATED'S BLOOD SO KEIDANREN CHOSE ITS LEADERS FROM GRAYING INDUSTRIES LIKE STEEL MR. HIRAIWA FOR EXAMPLE HAILS FROM TOKYO ELECTRIC POWER COMPANY AN ELECTRIC UTILITY MR. TOYODA WILL TAKE OVER KEIDANREN AT A CRITICAL POINT IN THE LOBBY'S HISTORY BIG BUSINESS IS STRUGGLING TO OVERCOME JAPAN'S STUBBORN RECESSION THE WORST SINCE WORLD WAR TWO PRESIDENT CLINTON HAD A GOOD TOUR OF EUROPE HE MADE JOLLY BIG MAN TALK WITH HELMUT KOHL WORKED THE CROWDS WELL AND DID NOTHING TO DISTRACT THE NEW RUSSIAN DUMA FROM ITS FISTICUFFS AND TABLE BANGING THUS AIDING BORIS YELTSIN'S PLAN TO TREAT THE MEMBERS LIKE CHILDREN CLEARLY MR. CLINTON IS A PRESIDENT WITH A KNACK FOR POLITICKING AS HIS FANS SAY HE HAS AN AGILE MIND AND SEEMS ALMOST INCAPABLE OF THE VERBAL GAFFES THAT HAVE PLAGUED MANY PAST PRESIDENTS INCLUDING TWO EISENHOWER AND FORD WHOSE SUBSTANTIVE PERFORMANCE IN OFFICE WAS QUITE GOOD AS A GOODWILL AMBASSADOR MR. CLINTON EXCELS SUCH SKILL IS NOT NOTHING AN AMERICAN PRESIDENT WHO CAN PRESENT AN ATTRACTIVE IMAGE TO THE PEOPLES OF OTHER NATIONS BROADENS THE POLITICAL DIMENSIONS OF HIS FOREIGN POLICY JOHN F. KENNEDY HAD THAT ABILITY SOMEHOW TRANSCENDING SOVIET THOUGHT CONTROL TO PROJECT A WHOLESOME PRESENCE INTO RUSSIAN HOMES AT THE HEIGHT OF THE COLD WAR THIS TALENT MAY BE EVEN MORE IMPORTANT TODAY BECAUSE THE IMAGE OF AMERICA COULD INFLUENCE THE POLITICS OF EMERGING DEMOCRACIES MR. CLINTON SET THE RIGHT TONE IN MOSCOW WHEN HE URGED RUSSIANS TO LOOK TO THE FUTURE NOT TO THE PAST AND CONTINUE MOVING TOWARD POLITICAL AND ECONOMIC REFORM BUT OF COURSE THERE IS MORE TO LEADERSHIP THAN MERELY THE PROJECTION OF PERSONALITY EVEN IN THIS AGE OF NASCENT DEMOCRACIES AN AMERICAN PRESIDENT IS NOT DEALING DIRECTLY WITH NATIONAL ELECTORATES HE IS TREATING WITH OTHER LEADERS THEY ARE ON THE WHOLE INDIVIDUALS WHO WOULD NOT BE WHERE THEY ARE WERE THEY NOT POSSESSED OF STRONG WILLS IN THE NATURAL ORDER OF THINGS THEY SET ABOUT TO TEST THE WILLS OF OTHER POLITICIANS NIKITA KHRUSHCHEV SENSED THAT THERE MIGHT BE INDECISION LURKING BEHIND J. F. K.'S CHARISMA TESTED THE YOUNG PRESIDENT'S WILL AND ALMOST PROVOKED WORLD WAR THREE SOMETIMES AN IMAGE OF CHEERFUL AMIABILITY CAN CREATE THE WRONG IMPRESSION AMONG PEOPLE WHO HAVE THE POWER TO MAKE A PRESIDENT'S LIFE NOT TO MENTION THE COURSE OF WORLD EVENTS DIFFICULT POLITICAL ANALYSTS WHO DABBLE IN PSYCHOLOGY SAY THAT BILL CLINTON IS A MAN WITH A STRONG NEED TO BE LOVED THAT THEORY EVEN HAS SOME SPECIFIC ANECDOTAL SUPPORT BUT IT COULD BE ARGUED THAT ANYONE WILLING TO ENDURE THE SLINGS AND ARROWS OF PUBLIC LIFE MUST HAVE A STRONG THIRST FOR THE PUBLIC ADULATION THAT RELIEVES THE RIGORS OF SUCH A LIFE IT IS HARDLY AN ORIGINAL OBSERVATION THAT POLITICIANS AS WITH ACTORS TRY TO MAKE PEOPLE LIKE THEM THE QUESTION IS NOT WHETHER BUT HOW MUCH A PRESIDENT'S POLICIES MAY TELL MORE THAN HIS PERSONALITY ABOUT HOW MUCH HE NEEDS TO BE LIKED IF THE NEED IS TOO STRONG IT CAN BE A PROBLEM ESPECIALLY IN THE CONDUCT OF FOREIGN POLICY THE BOOK ON MR. CLINTON AFTER HIS EIGHT DAY SWING AROUND EUROPE IS THAT YES HE POSSIBLY WANTS TOO MUCH TO BE LIKED BLESSED ARE THE PEACEMAKERS BUT AN AMERICAN PRESIDENT WHO SEEMS TOO COMPLIANT MAY WELL FIND HIS PATH STREWN WITH LAND MINES MR. CLINTON'S FIRST BIG FOREIGN POLICY MISTAKE WAS TO TELL THE WORLD THAT HIS ADMINISTRATION WOULD FOCUS PRIMARILY ON DOMESTIC POLICY IT WAS A TACTICAL MISTAKE IN THAT IT SUGGESTED THAT THIS PRESIDENT WAS DEFAULTING ON AMERICA'S WORLD LEADERSHIP IT WAS AN ERROR OF PRINCIPLE IN THAT IT BETRAYED A MISUNDERSTANDING OF THE ROLE OF THE PRESIDENT IN THE AMERICAN FEDERAL SYSTEM NATIONAL SECURITY IS THE PRESIDENT'S MOST IMPORTANT JOB GOVERNORS CAN HANDLE WELFARE OR HEALTH POLICY BUT ONLY A PRESIDENT'S DECISIONS WILL DETERMINE WHETHER THE NATION ENJOYS PEACE OR SUFFERS WAR OR FOR THAT MATTER FALLS VICTIM TO A FATAL ASSAULT FROM ITS ENEMIES MR. CLINTON TRIED TO SHUCK OFF FOREIGN POLICY TO THE UNITED NATIONS AND GOT SOMALIA FOR HIS TROUBLES IT IS NOT YET CLEAR THAT HE HAS LEARNED MUCH ABOUT THE POSSIBLE CONSEQUENCES OF SHIRKING HIS MOST IMPORTANT RESPONSIBILITY THE EUROPEAN TOUR ALSO BETRAYED A TENDENCY TO FOLLOW THE COURSE OF LEAST RESISTANCE AT THE NATO SUMMIT HE LAUNCHED PARTNERSHIP FOR PEACE AN ILL DEFINED PLAN THAT WILL GIVE THE FORMER SOVIET SATELLITES OF CENTRAL EUROPE A LITTLE BUT NOT MUCH COMFORT ABOUT THEIR OWN SECURITY HIS ALTERNATIVE WOULD HAVE BEEN TO START PULLING POLAND THE CZECH REPUBLIC AND HUNGARY UNDER NATO'S SECURITY UMBRELLA RELIEVING THEIR VERY PALPABLE FEARS OF ONCE AGAIN BEING THROWN TO THE WOLVES OF ABSOLUTISM MR. CLINTON ALSO TALKED LEONID KRAVCHUK OF UKRAINE INTO DOING SOMETHING DETAILS WERE NOT REVEALED TO RID HIS COUNTRY OF NUCLEAR WEAPONS EVEN THOUGH MR. KRAVCHUK'S PARLIAMENT STRONGLY OPPOSES THIS CONCESSION TO RUSSIA PUTTING IT IN NUMERICAL TERMS THE PRESIDENT DIDN'T WANT TO DO ANYTHING FORCEFUL FOR THE TWO HUNDRED MILLION PEOPLE WHO INHABIT THE NON RUSSIAN FORMER COMMUNIST STATES OF EUROPE HE FEARED THAT IT MIGHT ANTAGONIZE THE ONE HUNDRED FIFTY MILLION WHO INHABIT THE RUSSIAN FEDERATION HE SURRENDERED TO THE LIKES OF VLADIMIR ZHIRINOVSKY EVEN BEFORE HE GOT TO RUSSIA EARNING FOR HIS TROUBLE ONLY VITUPERATION FROM THAT WORTHY AT THE NATO SUMMIT AS WELL THE PRESIDENT SHUCKED OFF SOME U. S. RESPONSIBILITIES IN WESTERN EUROPE ACCEDING TO FRENCH DEMANDS THAT THE WESTERN EUROPEAN UNION SHARE COMMAND OVER NATO FORCES IF NATO HAS BEEN POWERLESS IN THE BOSNIAN CRISIS IT WILL BE EVEN MORE HELPLESS NOW WITH A DIVIDED COMMAND OF COURSE THAT COULD BECOME IMMATERIAL IN A FEW MORE YEARS BECAUSE IT IS NOT CERTAIN THAT THERE WILL BE ANY SIGNIFICANT NUMBERS OF TROOPS LEFT TO COMMAND IF THE U. S. AND EUROPE CONTINUE DISARMING AT THE PRESENT RATE AS TO BOSNIA THAT WAS BRUSHED OFF WITH YET A THIRD THREAT OF AIR STRIKES BUT TO BE CARRIED OUT ONLY IF U. N. SECRETARY GENERAL BOUTROS BOUTROS GHALI ORDERS THEM THE NATO SUMMIT ENDED WITH CHEERFUL QUOTES FOR THE PRESS ABOUT HARMONY BUT IT IS RELATIVELY EASY TO HAVE HARMONY IF YOU AGREE IN ESSENCE TO DO NOTHING NATO INSIDERS FEAR THAT THE ALLIANCE IS UNRAVELING FINALLY THERE WAS YESTERDAY'S LONGWINDED MEETING IN GENEVA WITH THE MURDEROUS HAFEZ ASSAD OF SYRIA WHICH ENDED WITH MR. ASSAD'S PROTESTATIONS OF PEACEFUL INTENT MR. CLINTON'S STATE DEPARTMENT SEEMS TO HAVE DECIDED THAT ASSAD QUOTE HOLDS THE KEY QUOTE TO MIDEAST PEACE IF THAT IS TRUE AND IT IS DOUBTFUL ANYONE UNWARY ENOUGH TO TRUST HIM TO USE IT CONSTRUCTIVELY DESERVES TO HAVE THE DOOR SLAMMED ON HIS FOOT WHICH WOULD BE THE LIKELY RESULT SOME MIGHT SAY THAT WHAT SEEMS LIKE WEAKNESS IN MR. CLINTON IS MERELY THE WORK OF AN ADROIT POLITICIAN MANEUVERING IN A WORLD WHERE ALL THE CUSTOMARY SIGNPOSTS HAVE BEEN TOPPLED MAYBE SO BUT BEWARE THE LIKES OF KIM IL SUNG OR SADDAM OR RAFSANJANI MANEUVER CERTAINLY SMILE FOR THE CAMERAS BUT NEVER FORGET TO BE TOUGH WHEN TOUGHNESS IS DEMANDED A CURRENT EXECUTIVE OF AN AMERICAN EXPRESS COMPANY UNIT AND ONE OF THE UNIT'S FORMER EMPLOYEES PLEADED INNOCENT TO CHARGES OF HELPING A REPUTED MEXICAN DRUG KINGPIN LAUNDER THIRTY MILLION DOLLARS ANTONIO GIRALDI AND MARIA LOURDES REATEGUI ARE ACCUSED OF SEVERAL COUNTS OF LAUNDERING PROFITS FROM THE ALLEGED DRUG ORGANIZATION OF JUAN GARCIA ABREGO A MEXICAN FUGITIVE MR. GIRALDI IS A SENIOR VICE PRESIDENT FOR AMERICAN EXPRESS BANK INTERNATIONAL'S MIAMI OFFICE AND MS. REATEGUI IS A FORMER EMPLOYEE OF THE BANK'S LOS ANGELES OFFICE U. S. MAGISTRATE JOHN WILLIAM BLACK TENTATIVELY SCHEDULED TRIAL FOR THE TWO TO BEGIN MARCH FOURTH THE EIGHTEEN COUNT FEDERAL INDICTMENT ISSUED LAST MONTH ACCUSES THE TWO OF SETTING UP INTERNATIONAL BANK ACCOUNTS FOR RICARDO AGUIRRE VILLAGOMEZ A GAS STATION OWNER FROM MATAMOROS MEXICO WHO IS NAMED AS A KEY MONEY LAUNDERER FOR THE DRUG RING MR. GARCIA ABREGO WHO IS WANTED IN BOTH THE U. S. AND MEXICO WAS ACCUSED IN A NINETEEN NINETY U. S. INDICTMENT OF RUNNING A MATAMOROS BASED ORGANIZATION THAT SMUGGLED MULTITON QUANTITIES OF COCAINE INTO THE U. S. THROUGH TIES TO COLOMBIAN DRUG LORDS A LITTON INDUSTRIES INCORPORATED UNIT PLEADED GUILTY TO FRAUD AND CONSPIRACY CHARGES AND AGREED TO PAY THREE POINT NINE MILLION DOLLARS IN THE FINALE OF THE MOST SUCCESSFUL MILITARY CORRUPTION PROBE IN MODERN TIMES AS PART OF THE PLEA AGREEMENT FILED IN FEDERAL COURT HERE OFFICIALLY ENDING THE SIX YEAR QUOTE OPERATION ILL WIND QUOTE INVESTIGATION LITTON CONCEDED THAT IT CONSPIRED WITH A CONSULTANT TO TRY ILLEGALLY TO OBTAIN BID RELATED INFORMATION ON THREE NAVY CONTRACTS BY PAYING CRIMINAL AND CIVIL PENALTIES THE COMPANY SAID IT WAS ASSURED THAT NONE OF ITS UNITS WILL BE SUSPENDED OR BARRED FROM RECEIVING ADDITIONAL GOVERNMENT BUSINESS RELYING ON EXTENSIVE USE OF WIRETAPS AND PLEA AGREEMENTS THE NATIONWIDE PROBE HAS RESULTED IN THE CONVICTION OF MORE THAN SIXTY INDIVIDUALS AND COMPANIES AS WELL AS MORE THAN TWO HUNDRED FIFTY MILLION DOLLARS IN RECOVERIES FOR THE U. S. TREASURY ATTORNEY GENERAL JANET RENO CALLING THE PROBE ONE OF THE MOST SUCCESSFUL WHITE COLLAR CRIME INVESTIGATIONS EVER PURSUED BY THE GOVERNMENT SAID IT WILL SERVE AS A PROTOTYPE FOR FUTURE INVESTIGATIONS INTO ENVIRONMENTAL CRIMES HEALTHCARE FRAUD INSURANCE FRAUD AND OTHER SCHEMES AGAINST THE GOVERNMENT JOE ARONICA THE ASSISTANT U. S. ATTORNEY WHO PROSECUTED ALL OF THE ILL WIND DEFENDANTS SAID OVER THE WEEKEND THAT THE INVESTIGATION PROMPTED THE PENTAGON TO CRACK DOWN ON THE USE OF CONSULTANTS AS A RESULT OF THE SCANDAL MR. ARONICA SAID DEFENSE CONCERNS ALSO WERE FORCED TO STEP UP INTERNAL ETHICS COMPLIANCE PROGRAMS AND GIVE THE GOVERNMENT GREATER ACCESS TO SUCH AUDITS AS PREVIOUSLY REPORTED LITTON REMAINS THE SUBJECT OF TWO OTHER CRIMINAL INVESTIGATIONS INVOLVING ALLEGEDLY IMPROPER PAYMENTS TO A MARKETING CONSULTANT IN TAIWAN AND CLAIMS BY A WHISTLEBLOWER THAT ONE OF THE COMPANY'S UNITS OVERCHARGED MILITARY AND COMMERCIAL CUSTOMERS FOR GYROSCOPE REPAIRS SOUTH KOREA'S ECONOMIC PLANNING BOARD UNVEILED INCENTIVES INCLUDING TAX BREAKS TO ENCOURAGE PRIVATE PARTICIPATION IN PUBLIC WORKS CONSTRUCTION SUCH AS ROADS AND PORTS COMPANIES COULD EVEN OWN PART OF WHAT THEY BUILD MOST ECONOMISTS AGREE ON THE NEED TO IMPROVE THE INADEQUATE INFRASTRUCTURE THAT HAMPERS THE ECONOMY BUT THE GOVERNMENT HAS BEEN STINGY AMID WARINESS ABOUT BUDGET DEFICITS AND INFLATIONARY EFFECTS OF EXPANDED PUBLIC PROJECTS THE NEW MEASURE ASSUMING IT IS APPROVED BY PARLIAMENT WOULD LET COMPANIES CHARGE TOLLS AND RENTS FROM PUBLIC SECTOR PROJECTS AND BUILD LEISURE AND TOURIST FACILITIES BY ROADS OR RAILWAYS TO ATTRACT MORE USERS PARTICIPANTS WOULD BE EXEMPT FROM PAYING SOME TAXES AND FEES AND COULD BORROW ABROAD NOW TIGHTLY RESTRICTED BECAUSE OF RULES THAT REPEL INVESTORS PRIVATE FIRMS PARTICIPATE IN LESS THAN FIVE PERCENT OF SOUTH KOREA'S PUBLIC WORKS TO HELP DEFRAY ITS TRAINING COSTS SWISSAIR IS OFFERING QUOTE RIDES QUOTE IN FLIGHT SIMULATORS WHEN PILOTS AREN'T USING THE TWENTY MILLION DOLLARS MACHINES RENTAL PRICES RANGE FROM THREE HUNDRED THIRTY EIGHT DOLLARS TO FIVE HUNDRED SEVENTY FIVE DOLLARS AN HOUR DEPENDING ON THE MODEL THE SWISS FLAG CARRIER HAS SEVEN REPRESENTING FIVE TYPES OF JETS THE AIRLINE WHICH USES THE DEVICES BETWEEN FOUR THOUSAND AND FIVE THOUSAND HOURS A YEAR HOPES TO RENT ABOUT ONE THOUSAND HOURS TO THE PUBLIC SWISSAIR STAFF WILL EXPLAIN COCKPIT CONTROLS AND GUIDE FLYING BUFFS THROUGH A TAKEOFF FLIGHT MANEUVERS AND LANDING BRITAIN'S OFFICE OF FAIR TRADING ASKED THE MERGERS AND MONOPOLIES COMMISSION TO INVESTIGATE THE VIDEO GAME INDUSTRY FOR ANY UNCOMPETITIVE TRADE PRACTICES THE MARKET FOR VIDEO GAMES EQUIPMENT AND SOFTWARE IN BRITAIN TOTALS ONE POINT OH FIVE BILLION DOLLARS ANNUALLY THE INQUIRY WAS RECOMMENDED FOLLOWING PUBLIC COMPLAINTS THAT PRICES WERE TOO HIGH AND FAR MORE THAN IN THE U. S. RETAILERS SAY DISTRIBUTION PRACTICES HINDER THEIR PRICING FREEDOM AND SOFTWARE PUBLISHERS FAULT LICENSING DEALS THAT CONTROL PRODUCTION OF GAMES FOR USE ON CERTAIN EQUIPMENT A GOVERNMENT OFFICIAL SAID IN AN EFFORT TO INCREASE ACCEPTANCE OF FOREIGNERS GERMANY'S BIGGEST TELEVISION NETWORK SAID IT PLANNED TO HIRE MORE NON GERMANS AS ANCHORS WESTDEUTSCHE RUNDFUNK KNOWN AS WDR ALSO WILL SHOW MORE PROGRAMS DEPICTING DAILY LIVES OF FOREIGNERS IN GERMANY AND EDUCATIONAL SPOTS TO COUNTER NEO NAZI ATTACKS AND OTHER RACIST VIOLENCE THAT HAVE REARED UP SINCE GERMAN REUNIFICATION IN NINETEEN NINETY WDR SAID ITS T. V. AND RADIO NETWORK WOULD TRY TO COMBAT THE SPREAD OF RIGHTIST IDEOLOGY THROUGH PROGRAMS THAT ENCOURAGE UNDERSTANDING AND DISPEL PREJUDICE PAKISTAN'S GOVERNMENT AIMS TO TAX WEALTHY LANDOWNERS A POWERFUL GROUP THAT DOMINATES THE ECONOMY AND HAS LEGALLY AVOIDED TAXES FOR DECADES THE PLAN WHICH WOULD RAISE TWO HUNDRED THIRTY MILLION DOLLARS A YEAR AND HELP RELIEVE THE COUNTRY'S CHRONIC FINANCIAL PROBLEMS WAS DEVISED BY PRIME MINISTER BENAZIR BHUTTO IN RESPONSE TO PRESSURE FROM THE INTERNATIONAL MONETARY FUND WHICH WANTS THE LEVY IMPOSED BEFORE APPROVING A ONE POINT THREE BILLION DOLLAR LOAN THE TAX PROPOSAL WAS VIEWED AS A TEST OF THE GOVERNMENT'S SERIOUSNESS ABOUT ECONOMIC REFORMS MRS. BHUTTO'S COALITION GOVERNMENT IS EXPECTED TO APPROVE THE MEASURE SOON RESIDENTS IN AND AROUND PUSAN SOUTH KOREA'S SECOND LARGEST CITY BOUGHT BOTTLED WATER OR LINED UP AT MINERAL WATER SPRINGS AFTER THE ENVIRONMENT AGENCY SAID THEIR TAP WATER HAD BEEN CONTAMINATED BY CHEMICAL WASTE THAT CAN CAUSE CANCER AND OTHER ILLNESSES IN TESTS AFTER COMPLAINTS ABOUT FOUL ODORS BENZENE AND TOLUENE WERE FOUND IN THE NAKDONG RIVER THE MAIN WATER SUPPLY FOR ABOUT TEN MILLION RESIDENTS OF THE SOUTHERN AREA THE LEVELS DETECTED WERE WITHIN PERMISSIBLE LIMITS FOR DRINKING WATER AND THE CONTAMINATION WAS PRESUMED TEMPORARY CAUSED BY ILLEGAL INDUSTRIAL DUMPING ARREST WARRANTS WERE ISSUED FOR A CHEMICAL COMPANY'S OFFICIALS IN THE FIRST AUCTION OF A NATURAL GAS PRODUCER IN ITS PRIVATIZATION PROGRAM RUSSIA NEXT MONDAY WILL OPEN A MONTH LONG OFFERING OF NORILSKGAZPROM STOCK RUSSIAN INVESTORS MAY USE PRIVATIZATION VOUCHERS TO BID FOR A SIX PERCENT STAKE IN THE MIDSIZE GAS COMPANY THE GOVERNMENT THROUGH ITS GAZPROM GAS MONOPOLY HOLDING COMPANY WILL RETAIN A THIRTY EIGHT PERCENT HOLDING AND A MAJORITY OF VOTING SHARES FOR AS LONG AS THREE YEARS IN A STRATEGY TO KEEP INITIAL CONTROL AS THE FIRMS ARE SOLD OFF WORKERS AT THE COMPANY IN NORTHERN RUSSIA NEAR THE TOWN OF NORILSK OWN FIFTY ONE PERCENT OF THE SHARES AND FIVE PERCENT IS RESERVED FOR RESIDENTS OF THE REGIONS AROUND NORILSKGAZPROM'S FIELDS IN LAST YEAR'S FIRST ELEVEN MONTHS NORILSKGAZPROM'S OUTPUT TOTALED FOUR POINT THREE BILLION CUBIC METERS DOWN FIVE POINT SEVEN PERCENT FROM A YEAR EARLIER GERMAN POLITICAL LEADERS AGREED TO MOVE PARLIAMENT TO BERLIN FROM BONN ALONG WITH GOVERNMENT AGENCIES BY THE YEAR TWO THOUSAND THE GOVERNMENT COULDN'T RELOCATE THE SIX HUNDRED SIXTY TWO MEMBER LEGISLATURE WITHOUT LAWMAKERS' APPROVAL RUSSIA'S PARLIAMENT IS WEIGHING A PLAN TO SLASH THE COUNTRY'S ENERGY USE THIRTY PERCENT THIS YEAR THROUGH EFFICIENCY IMPROVEMENTS AND FURTHER INCREASES IN PRICES PREVIOUSLY KEPT ARTIFICIALLY LOW THROUGH SUBSIDIES RUSSIA'S REFORM CZAR RESIGNED ONE DAY AFTER CLINTON'S DEPARTURE THE RIFT IN THE RUSSIAN GOVERNMENT BROKE INTO THE OPEN AS ITS ARCHITECT OF ECONOMIC REFORM GAIDAR SAID HE WAS STEPPING DOWN IN A LETTER TO PRESIDENT YELTSIN GAIDAR CITED QUOTE UNCEASING PRESSURE ON THE PART OF CONSERVATIVE POLITICAL CIRCLES QUOTE AGAINST REFORM HIS ABRUPT MOVE CAME DESPITE YELTSIN'S PLEDGE MADE AT THE JUST COMPLETED SUMMIT WITH CLINTON THAT RUSSIA WOULD PRESS AHEAD WITH MARKET REFORMS WITH GAIDAR OUT OF THE CABINET REFORMS ARE LIKELY TO PROCEED MORE GRADUALLY THERE WAS SPECULATION THAT TWO OTHER RADICAL REFORMERS ALSO WOULD RESIGN FINANCE MINISTER FYODOROV AND RUSSIA'S PRIVATIZATION CHIEF CHUBAIS SYRIAN LEADER ASSAD AGREED TO SEEK NORMAL RELATIONS WITH ISRAEL DURING TALKS WITH CLINTON THE SYRIAN PRESIDENT OFFERED ISRAEL NORMAL PEACEFUL RELATIONS UNDER CERTAIN CONDITIONS CLINTON HAILED THE OVERTURE AND SAID ASSAD HAD DECIDED TO TAKE THE RISKS NEEDED FOR PEACE ASKED IF ASSAD'S DEFINITION OF PEACE WOULD MEAN OPEN BORDERS FREE TRADE AND DIPLOMATIC RELATIONS AS ISRAEL HAS SOUGHT CLINTON SAID THE SHORT ANSWER IS YES ISRAEL'S RABIN WITHHELD COMMENT UNTIL HE IS BRIEFED BY U. S. OFFICIALS HUNDREDS OF ISRAELI SETTLERS LIVING IN THE GOLAN HEIGHTS CLASHED WITH POLICE BURNED TIRES AND BLOCKED A ROAD TO PROTEST THE U. S. SYRIA SUMMIT MEXICO'S PRESIDENT STEPPED UP PRESSURE ON MEXICAN REBELS TO NEGOTIATE PEACE ANNOUNCING THAT AN AMNESTY COVERING THEIR REBELLION WOULD EXPIRE SALINAS SAID THAT THE FOUR DAY OLD AMNESTY OFFER FOR ALL THE PARTICIPANTS IN THE VIOLENT ACTS THAT BEGAN ON JANUARY FIRST WAS ENDING EFFECTIVE YESTERDAY SECRETARY OF STATE CHRISTOPHER CAST DOUBT ON EXILED HAITIAN PRESIDENT ARISTIDE'S FEBRUARY SEVENTH TARGET DATE FOR RESUMING POWER SAYING IT PROBABLY IS NOT WORKABLE ARISTIDE HOSTING A WEEKEND CONFERENCE IN MIAMI URGED FOREIGN GOVERNMENTS TO HELP RESTORE HIM TO OFFICE BY EARLY NEXT MONTH THE FOREST SERVICE SAID IT INTENDS TO CANCEL A CONTRACT THAT PROVIDES LARGE AMOUNTS OF CHEAP TIMBER TO ALASKA PULP COMPANY THE CONTRACT IS ONE OF TWO FIFTY YEAR PACTS THAT ENVIRONMENTALISTS AND MANY U. S. FOREST MANAGERS SAY HAVE PROMOTED SEVERE OVERCUTTING IN THE TONGASS NATIONAL FOREST IN SOUTHEAST ALASKA JAPANESE OFFICIALS ARE CONDUCTING AN INVESTIGATION INTO THE FLOW OF HIGH TECHNOLOGY FROM JAPANESE COMPANIES TO NORTH KOREA WHICH IS WIDELY SUSPECTED OF DEVELOPING NUCLEAR WEAPONS TOKYO POLICE SAID THEY ARE MAKING SEARCHES AND QUESTIONING OFFICIALS AT NEARLY A DOZEN DIFFERENT COMPANIES ELDERS OF SOMALIA'S RIVAL CLANS SIGNED A PEACE ACCORD MEDIATED BY ISLAMIC LEADERS BUT IT WAS UNCERTAIN WHETHER THE TWO MAIN FACTION LEADERS IN MOGADISHU WOULD HEED CALLS TO LAY DOWN THEIR ARMS THE TWO LEADERS AIDID AND ALI MAHDI DIDN'T SEND REPRESENTATIVES TO THE CONFERENCE FIGURE SKATER TONYA HARDING INSISTED IN A WRITTEN STATEMENT THAT SHE HAD NOTHING TO DO WITH A JANUARY SIXTH ATTACK ON RIVAL NANCY KERRIGAN AND HARDING'S COACH SAID SHE DESERVES TO COMPETE IN THE OLYMPICS NEXT MONTH HARDING'S BODYGUARD AND TWO OTHER MEN HAVE BEEN CHARGED WITH CONSPIRACY TO ASSAULT KERRIGAN ITALY'S PRESIDENT DISSOLVED PARLIAMENT AND REJECTED PREMIER CIAMPI'S RESIGNATION ASKING HIM TO REMAIN AS HEAD OF A CARETAKER GOVERNMENT UNTIL ELECTIONS ARE HELD THE EARLY PARLIAMENTARY ELECTIONS WERE SCHEDULED FOR MARCH TWENTY SEVENTH CIAMPI HAD OFFERED HIS RESIGNATION LAST WEEK DURING A NO CONFIDENCE VOTE IN PARLIAMENT REBEL JETS DROPPED CLUSTER BOMBS ON THE AFGHAN CAPITAL KILLING AND WOUNDING MANY PEOPLE THE OFFICIAL KABUL RADIO SAID AIR STRIKES WERE CARRIED OUT BOTH BY FORCES LOYAL TO PRESIDENT RABBANI AND BY HIS OPPONENTS LED BY PRIME MINISTER HEKMATYAR AND NORTHERN WARLORD DOSTUM ACCORDING TO AFGHAN SOURCES IN NEIGHBORING PAKISTAN A MILITANT BLACK GROUP SUSPENDED ITS ARMED STRUGGLE IN SOUTH AFRICA SAYING IT WANTED TO ENSURE PEACE FOR THE COUNTRY'S FIRST MULTIRACIAL ELECTION IN APRIL THE HEAD OF THE PAN AFRICANIST CONGRESS ALSO SAID HIS GROUP WAS NEGOTIATING WITH THE GOVERNMENT ON JOINING A NATIONAL PEACEKEEPING FORCE AND A TRANSITIONAL ADMINISTRATIVE BODY WITH PRESIDENT CLINTON'S EUROPEAN VISIT AT AN END NO DOUBT THE AMERICAN PUBLIC'S ATTENTION HAS BEGUN TO DRIFT TO MATTERS DOMESTIC WE IN CENTRAL EUROPE HAVE NO SUCH LUXURY TWO YEARS AGO CENTRAL EUROPE WOULD HAVE WELCOMED NATO'S QUOTE PARTNERSHIP FOR PEACE QUOTE THE PROPOSALS FOR JOINT EXERCISES TRAINING AND CONSULTATIONS WERE EXACTLY WHAT THE NEW DEMOCRACIES EXPECTED THE WEST TO OFFER TODAY WITH RUSSIAN NATIONALISM ON THE RISE IT IS TOO LITTLE TOO LATE NATURALLY CENTRAL EUROPEAN STATES SHOULD MAKE THE BEST OF WHAT IS ON OFFER SOME NATO SPOKESMEN HAVE MADE THE ARGUMENT THAT PARTNERSHIP FOR PEACE IS CANDIDATE MEMBERSHIP IN ALL BUT NAME A LITMUS TEST OF THIS WILL BE WHETHER CENTRAL EUROPEAN ARMIES ARE OFFERED THE KINDS OF ADJUSTMENT PROGRAMS ONCE OFFERED TO OTHER ASPIRING MEMBERS SUCH AS SPAIN OR PORTUGAL CENTRAL EUROPEAN OFFICERS ARE ALREADY BEING TRAINED AT WESTERN ACADEMIES NOW WHOLE STAFFS SHOULD BE INVITED TO JOIN IN PLANNING SESSIONS AND EXERCISES THE WEST SHOULD ALSO HELP BRING CENTRAL EUROPEAN MILITARY COMMUNICATIONS AND COMMAND AND CONTROL SYSTEMS INTO LINE WITH NATO SPECIFICATIONS TO EASE COMMUNICATION IN CASE OF EMERGENCIES MOREOVER IT SHOULD ADVISE THE CENTRAL EUROPEANS ON HOW TO SPEND THEIR DEFENSE BUDGETS MORE RATIONALLY PERHAPS BY SUGGESTING WHICH WARSAW PACT ERA SITES SHOULD BE MAINTAINED FOR POSSIBLE NATO USE CENTRAL EUROPEAN ARMIES WOULD ALSO JUMP AT THE CHANCE TO CONDUCT PEACEKEEPING ON NATO'S BEHALF PROVIDED THE WEST FOOTS THE BILL THROUGH ITS TWENTY YEARS OF EXPERIENCE IN UNITED NATIONS MISSIONS THE POLISH ARMY FOR EXAMPLE IS WELL QUALIFIED TO DO THIS POORER COUNTRIES HAVE ALWAYS SUPPLIED MERCENARIES TO RICHER ONES AND THERE IS NO NEED TO BE SHY ABOUT IT EVEN IF THESE POLICIES ARE ALL CARRIED OUT OVER THE NEXT FEW YEARS AND EVEN IF THE INTENTIONS BEHIND THE PARTNERSHIP FOR PEACE ARE HONEST WE CENTRAL EUROPEANS CAN BE FORGIVEN FOR FEELING NEVERTHELESS A CERTAIN DISAPPOINTMENT THIS IS NOT JUST BECAUSE WE WERE EXCLUDED FROM THE NATO SECURITY GUARANTEE WE WERE ALSO DISMAYED BY SOME OF THE ARGUMENTS IN FAVOR OF OUR EXCLUSION AND THE TONE ADOPTED BY SOME WESTERN LEADERS FOR EXAMPLE LORD CARRINGTON NATO'S FORMER SECRETARY GENERAL ARGUED AGAINST THE ALLIANCE'S ENLARGEMENT BECAUSE FIRST THIS WOULD LEAD TO CONSIDERABLE DISQUIET BY THE RUSSIANS SECOND A NUMBER OF THE EXISTING NATO MEMBERS WOULD NOT BE VERY HAPPY TO GUARANTEE THE SO CALLED INTEGRITY OF POLAND AND SOME OF THE OTHER COUNTRIES THE SO CALLED TELLS US A LOT ABOUT THE WEST'S RESOLVE TO COME TO THE AID OF EUROPE'S NEW DEMOCRACIES THE MOST ELOQUENT EXPRESSION OF THE WESTERN ATTITUDE WAS A NEWSWEEK COVER OF A FEW WEEKS AGO THAT SHOWED A FRIGHTENED LITTLE RUSSIAN BEAR A MASCOT FROM THE MOSCOW OLYMPICS STANDING AMID DOZENS OF NASTY BLACK GUNS AIMED AT HIM FROM ALL DIRECTIONS WHO THREATENS HIM THE WEST CENTRAL EUROPE ESTONIA THE COVER DIDN'T SAY THE COMPASSION FOR THE LITTLE BEAR IS LACED WITH FEAR HE DOES WE ARE TOLD STILL OWN THIRTY THOUSAND NUCLEAR WARHEADS SO WE MUSTN'T DO ANYTHING THAT MIGHT ANNOY HIM BETTER TO TALK TO HIM GENTLY AND FEED HIM LOTS OF HONEY THIS MIX OF SENTIMENTALITY NAIVETE AND FEAR IS EXACTLY WHAT DROVE APPEASEMENT IN THE NINETEEN THIRTIES THE DISCUSSIONS ABOUT ENLARGEMENT IGNORE ONE OF THE TWENTIETH CENTURY'S MOST PAINFUL LESSONS SO FAR AS SECURITY IS CONCERNED WESTERN EUROPE CANNOT INSULATE ITSELF FROM THE EAST IT IS NO COINCIDENCE THAT WORLD WAR ONE WORLD WAR TWO AND THE COLD WAR WERE LARGELY FOUGHT IN AND ABOUT CENTRAL EUROPE IF HITLER HAD SUCCEEDED IN DOMINATING CENTRAL EUROPE UNOPPOSED WITH CZECH INDUSTRY ROMANIAN OIL FIELDS AND POLISH SLAVE LABOR HE COULD HAVE DOMINATED THE REST OF EUROPE AND ALMOST DID THE COLD WAR OF NINETEEN FORTY FIVE TO EIGHTY NINE REINFORCES THE LESSON THAT WHOEVER CONTROLS CENTRAL EUROPE IS A THREAT TO WESTERN EUROPE AS WELL IT WAS ONLY BY OCCUPYING CENTRAL EUROPE AFTER ALL THAT THE SOVIET UNION POSED A DIRECT CHALLENGE TO THE WEST THE OLD JOKE ABOUT NATO SAYS THAT THE ALLIANCE WAS DESIGNED TO KEEP THE RUSSIANS OUT THE AMERICANS IN AND THE GERMANS DOWN UNDIPLOMATIC LANGUAGE EXCEPTED THESE ARE STILL VALID GOALS REASSURED THAT THEY ARE PROTECTED FROM BOTH GERMANY AND RUSSIA THE CENTRAL EUROPEANS THE POLES HUNGARIANS CZECHS AND SLOVAKS COULD BECOME CATALYSTS FOR DEMOCRATIC REFORM IN NATIONS FARTHER EAST IN PARTICULAR UKRAINE WHICH HAS YET TO REAFFIRM ITS PLEDGE TO GIVE UP NUCLEAR WEAPONS WOULD BE MORE LIKELY TO LIVE UP TO ITS COMMITMENT IF IT BORDERED ON NATO AREA CONTRARY TO RECEIVED WISDOM NATO'S VACILLATION ISN'T HELPING THE CAUSE OF REFORM IN THE EAST IN CENTRAL EUROPE NATO'S DECISION IS ALREADY MATERIALLY HARMING REFORM PROSPECTS THE CZECH REPUBLIC HAS CANCELED ITS PLANNED ARMY REDUCTION POLAND ALSO IS LIKELY TO STOP CUTTING ITS DEFENSE BUDGET MONEY THAT SHOULD BE ALLOCATED TO CREDITS FOR EMERGING PRIVATE COMPANIES INSTEAD WILL BE SPENT ON RESTARTING OLD WARSAW PACT ARMS FACTORIES PARTNERSHIP FOR PEACE WAS A GOOD IDEA WHEN IT WAS CONCEIVED BUT WITH RUSSIAN CHAUVINISM ON THE MARCH IT IS NOW TIME TO GO FURTHER THE ECONOMY'S RECENT STRENGTHENING SEEMS TO BE PUTTING AMERICANS IN A MUCH BETTER MOOD BUT ECONOMISTS STILL DOUBT THE GROWTH IN THE LAST PART OF THE YEAR WILL CONTINUE SO STRONGLY THROUGHOUT NINETEEN NINETY FOUR THE LATEST SIGN THAT THE YEAR FINISHED WITH A BANG WAS A FEDERAL RESERVE REPORT FRIDAY THAT INDUSTRIAL PRODUCTION ROSE ZERO POINT SEVEN PERCENT IN DECEMBER THE RISE DRIVEN BY HIGH PRODUCTION AT AUTO PLANTS WAS THE SEVENTH IN A ROW AND IT FOLLOWED A ZERO POINT NINE PERCENT GAIN IN NOVEMBER FOR THE YEAR INDUSTRIAL PRODUCTION WAS UP FOUR POINT TWO PERCENT COMPARED WITH A TWO POINT THREE PERCENT RISE IN NINETEEN NINETY TWO AND A ONE POINT EIGHT PERCENT DECLINE IN NINETEEN NINETY ONE SUCH GOOD ECONOMIC NEWS APPARENTLY IS AFFECTING PEOPLE'S ATTITUDES THE UNIVERSITY OF MICHIGAN'S INDEX ON CONSUMER SENTIMENT SHOT UP TO A HEALTHY NINETY FIVE POINT EIGHT IN EARLY JANUARY FROM EIGHTY EIGHT POINT TWO IN DECEMBER ACCORDING TO MARKET PARTICIPANTS WHO HAVE SEEN THE REPORT CONSUMER EXPECTATIONS ONE COMPONENT OF THE INDEX JUMPED TO EIGHTY SEVEN POINT SIX FROM SEVENTY EIGHT POINT EIGHT WHILE THE OUTLOOK ON CURRENT CONDITIONS PRESSED AHEAD TO ONE HUNDRED EIGHT POINT SIX UP FROM ONE HUNDRED TWO POINT NINE THE MICHIGAN INDEX IS AVAILABLE ONLY TO PRIVATE SUBSCRIBERS QUOTE CONSUMERS HAVE MORE WIDELY RECOGNIZED THE IMPROVEMENT IN THE ECONOMY DURING THE FOURTH QUARTER ESPECIALLY IN EMPLOYMENT QUOTE SAID RICHARD CURTIN DIRECTOR OF THE MICHIGAN SURVEY THE JANUARY FIGURE IS NO LONGER HOLIDAY CHEER SAID FABIAN LINDEN EXECUTIVE DIRECTOR OF THE CONFERENCE BOARD'S CONSUMER RESEARCH CENTER WHICH CONDUCTS ITS OWN STUDY ON CONFIDENCE LEVELS THIS IS THE REAL MCCOY AS LONG AS THE ECONOMY CONTINUES TO CREATE A MODERATE NUMBER OF NEW JOBS AND INFLATION REMAINS FLAT CONSUMERS WILL REMAIN HOPEFUL MR. LINDEN SAID ACCORDING TO THE FEDERAL RESERVE REPORT PRODUCTION OF CONSUMER DURABLE GOODS EXCLUDING AUTOS ROSE ONE POINT FOUR PERCENT BUT NONDURABLES SUCH AS PAPER PRODUCTS AND GASOLINE DECLINED ZERO POINT TWO PERCENT THE BIG QUESTION IS THE SUSTAINABILITY OF THIS GROWTH RATE INTO THE FIRST QUARTER SAID DOUG HANDLER AN ECONOMIST WITH DUN AND BRADSTREET I THINK THE AUTO PRODUCTION CYCLE HAS RUN ITS COURSE GOVERNMENT ECONOMISTS ARE OPTIMISTIC ROBERT RUBIN CHAIRMAN OF THE NATIONAL ECONOMIC COUNCIL SAID THE PIECES ARE FALLING INTO PLACE FOR A ROBUST ECONOMY FOR A LONG LONG LONG TIME THE FED SAID CAPACITY UTILIZATION WHICH ECONOMISTS CONSIDER AN INDICATOR OF FUTURE INFLATION JUMPED ZERO POINT FIVE PERCENTAGE POINT TO EIGHTY THREE POINT FIVE PERCENT LAST MONTH THE ADVANCE FOLLOWED A ZERO POINT SEVEN PERCENTAGE POINT RISE IN NOVEMBER BUT ECONOMISTS THINK THE RISE DOESN'T INDICATE A THREAT OF INFLATION BECAUSE MANY FACTORIES HAVE BECOME EXTREMELY AUTOMATED AND ARE ABLE TO HANDLE BIG INCREASES IN PRODUCTION WITHOUT BOTTLENECKS THERE ALSO IS STILL A LOT OF EXCESS CAPACITY AT FACTORIES OVERSEAS REFLECTING A SLUGGISH WORLD WIDE ECONOMY BUT THERE ARE SIGNS THAT TIGHT CAPACITY IN SOME INDUSTRIES MAY BE CAUSING PRICE PRESSURES SPURRED BY GROWING DEMAND AND TIGHTER PLANT CAPACITY PRICES OF INDUSTRIAL RAW MATERIALS ARE ON THE RISE GEORGIA PACIFIC CORPORATION FOR INSTANCE SUDDENLY IS FINDING ITSELF WITH CRIMPED CAPACITY FOR THE PRODUCTION OF PULP FOR PAPER SO AFTER THREE YEARS OF DEPRESSED PRICES IT FINALLY RAISED PRICES ON JANUARY FIRST BY TEN PERCENT MOREOVER QUOTE WE'RE NOW THINKING ABOUT ANOTHER PRICE INCREASE PROBABLY FOR TEN PERCENT AS WELL IN A FEW MONTHS QUOTE SAYS CLINT KENNEDY A GROUP VICE PRESIDENT THE PROSPECTS FOR THAT ONE STICKING ARE EQUALLY GOOD HE ADDED NOTING THAT THE SUPPLY DEMAND BALANCE HAS TILTED IN GEORGIA PACIFIC'S FAVOR OVERALL THOUGH ECONOMISTS FEEL THAT INFLATION IS WELL BEHAVED REFERRING TO THE FED'S FIGURES ON CAPACITY UTILIZATION MR. HANDLER SAID THIS IS NOT THE REPORT THAT WILL SEND THE FED OVER THE THRESHOLD TO RAISE INTEREST RATES SEPARATELY THE COMMERCE DEPARTMENT REPORTED MANUFACTURERS' INVENTORIES ROSE ZERO POINT SIX PERCENT IN NOVEMBER WHILE SALES INCREASED ONE POINT ONE PERCENT DURING THE MONTH THE STRONG SALES FIGURES HELPED PUSH THE INVENTORY TO SALES RATIO WHICH MEASURES HOW MANY MONTHS IT WOULD TAKE TO DEPLETE STOCKPILES AT THE CURRENT SALES PACE DOWN TO ONE POINT FOUR FOUR FROM ONE POINT FOUR FIVE IN OCTOBER ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN DECEMBER THE FIGURES ARE SEASONALLY ADJUSTED THE NINETEEN EIGHTY SEVEN AVERAGE THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE PERCENT HIGH TWO AND SEVEN EIGHTHS PERCENT LOW TWO AND FIFTEEN SIXTEENTHS PERCENT NEAR CLOSING BID THREE PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH FIVE PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH SEVEN PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT ONE OH PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE THREE PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT ONE FIVE PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO ONE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED FIFTY NINE DAYS THREE POINT THREE OH PERCENT TWO HUNDRED SIXTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE ONE PERCENT THIRTY DAYS THREE POINT ONE FOUR PERCENT SIXTY DAYS THREE POINT ONE EIGHT PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE FOUR PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT FIVE NINE PERCENT THREE MONTHS TWO POINT SEVEN TWO PERCENT SIX MONTHS TWO POINT NINE FOUR PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT ONE OH PERCENT ONE MONTH THREE POINT ONE FIVE PERCENT THREE MONTHS THREE POINT THREE OH PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH THREE PERCENT THIRTY DAYS THREE POINT OH FOUR PERCENT SIXTY DAYS THREE POINT OH SEVEN PERCENT NINETY DAYS THREE POINT OH NINE PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE FOUR PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE EIGHT PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FOUR MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT FIVE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT THREE AND FIVE SIXTEENTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT SIX MONTHS THREE AND THREE QUARTERS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT EIGHT PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY TENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT OH TWO PERCENT THIRTEEN WEEKS THREE POINT ONE EIGHT PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT NINE SEVEN PERCENT SIXTY DAYS SEVEN POINT OH FIVE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT NINE SEVEN PERCENT SIXTY DAYS SEVEN POINT OH SEVEN PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT OH FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN FOUR PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS A NEW COMMERCIAL FOR B. M. W. SCHEDULED TO BEGIN AIRING THIS EVENING SHOWS THE LUXURY CAR MANEUVERING EFFORTLESSLY ON A RURAL LAKE OF SOLID ICE THE CAR EASILY HANDLES CURVES WHILE VIRTUALLY CARVING A FIGURE EIGHT INTO THE ICE THE B. M. W. CAN QUOTE HELP YOU SLIP AWAY WITHOUT SLIPPING QUOTE THE ANNOUNCER DECLARES THE PLANNED FOR THIS YEAR IN A CONTINUING EFFORT TO REPOSITION B. M. W. AS A SAFE AFFORDABLE VEHICLE FOR THE ENTIRE FAMILY AND STEER IT FURTHER AWAY FROM ITS IMAGE AS THE LOVE BUG FOR YUPPIES THE ADVERTISING ALSO MARKS THE SECOND EFFORT BY B. M. W.'S NEW AGENCY MULLEN ADVERTISING WHICH REPLACED AMMIRATI AND PURIS LAST FEBRUARY AFTER THEIR EIGHTEEN YEAR RELATIONSHIP SOURED MULLEN'S FIRST ADS CAME IN FOR CRITICISM AND AUTO ANALYSTS DON'T GIVE THEM MUCH CREDIT FOR B. M. W.'S SALES RESURGENCE IN NINETEEN NINETY THREE B. M. W. OF NORTH AMERICA THE U. S. UNIT OF BAYERISCHE MOTOREN WERKE A. G. SOLD SEVENTY EIGHT THOUSAND TEN UNITS LAST YEAR A NINETEEN PERCENT INCREASE FROM NINETEEN NINETY TWO SALES IN COMPARISON INFINITI HAD SALES OF FIFTY THOUSAND FIVE HUNDRED FORTY SEVEN UP FOURTEEN PERCENT LEXUS SOLD NINETY FOUR THOUSAND SIX HUNDRED SEVENTY SEVEN UNITS UP TWO PERCENT AND MERCEDES BENZ DIPPED TWO PERCENT TO SELL SIXTY ONE THOUSAND EIGHT HUNDRED NINETY NINE UNITS INFINITI LEXUS AND MERCEDES BENZ ARE B. M. W.'S DIRECT COMPETITORS FOR ITS PART B. M. W. SAYS MULLEN ADVERTISING HAS HAD A VERY POSITIVE EFFECT ON SALES BUT AUTO ANALYSTS CITE OTHER REASONS FOR B. M. W.'S BOOM THE VALUE PRICE POSITIONING AND THE PRODUCT CHANGES ARE THE REASONS SAYS SUSAN JACOBS AN ANALYST WITH JACOBS AUTOMOTIVE AN AUTO FORECASTING AND CONSULTING FIRM ITS MARKETING AND ADVERTISING EFFORTS AREN'T THE CORE REASONS FOR THE SUCCESS I DON'T THINK ADVERTISING IS RESPONSIBLE FOR B. M. W.'S INCREASE SAYS CHRIS CEDERGREN AN ANALYST WITH AUTOPACIFIC GROUP IN SANTA ANA CALIFORNIA HE SAYS B. M. W.'S JAPANESE COMPETITORS RAISED PRICES TO BE CLOSER TO B. M. W.'S STICKER PRICE THE LEXUS USED TO BE UNDER THIRTY SEVEN THOUSAND FIVE HUNDRED DOLLARS NOW IT'S FIFTY ONE THOUSAND DOLLARS A B. M. W. COULD BE FIFTY FIVE THOUSAND DOLLARS FOR ITS SEVEN SERIES THAT ADDS UP TO BASICALLY NO PRICE DIFFERENCE QUOTE MULLEN'S FIRST TELEVISION COMMERCIALS FOR B. M. W. WHICH PREMIERED IN MAY WERE PANNED BY MANY ON MADISON AVENUE THEY SHOWED PECULIAR FOOTAGE OF COWS AND DAISIES IN SLOW MOTION WHILE A B. M. W. ZOOMED BY THE ADS ALSO POKED FUN AT THE COMPETITION THE WINE GLASS TEST HAS BEEN A LITTLE OVERDONE SO HAS THE BALL BEARING TEST THE REFERENCES TARGETED ADS FOR TOYOTA MOTOR'S LEXUS AND NISSAN MOTOR'S ALTIMA THE B. M. W. AD CONTINUED BUT IN REAL LIFE WHAT COUNTS IS THE CORKSCREW TEST HAIRPIN AND STOP ON A DIME TESTS WHAT FOLLOWED WERE THE USUAL SHOTS OF A CAR HANDLING CURVES ALONG A WINDING MOUNTAIN ROAD I DIDN'T MUCH LIKE THE ADS SAYS BOB GARFIELD THE CRITIC FOR ADVERTISING AGE I FOUND THEM AWKWARD AND CONFUSING INDEED THE AD WORLD HAS BEEN BUZZING WITH RUMORS ABOUT DISPLEASURE AMONG B. M. W. EXECUTIVES OVER MULLEN'S CREATIVE WORK THERE WAS TALK THAT MULLEN REACHED OUTSIDE ITS AGENCY WHICH IS BASED IN SUBURBAN BOSTON TO HIRE ADDITIONAL CREATIVE TALENT TO QUELL THE UNHAPPINESS AND ENSURE THAT THE EIGHTY MILLION DOLLARS B. M. W. ACCOUNT WOULD STAY PARKED AT THE AGENCY IN DECEMBER JACK FUND FORMERLY WITH RUBIN POSTAER AND ASSOCIATES IN SANTA MONICA CALIFORNIA AND KEITH WEINMAN FROM FOOTE CONE AND BELDING IN SAN FRANCISCO JOINED MULLEN AS A CREATIVE TEAM FOR B. M. W. BOTH HAD WORKED ON HONDA ADS QUOTE IT WAS ALWAYS OUR INTENTION TO HIRE A THIRD CREATIVE TEAM TO WORK ON B. M. W. QUOTE SAYS JAMES X. MULLEN THE AGENCY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER B. M. W. AND MULLEN DENY ANY DISSATISFACTION THE RELATIONSHIP WAS NEVER IN JEOPARDY SAYS MR. MULLEN INSTEAD YOU HAD A BUNCH OF PEOPLE FROM MULLEN AND B. M. W. GETTING TO KNOW ONE ANOTHER MR. MULLEN CONCEDES THERE WAS SOME ROUGHNESS WITH WHAT WAS PUT OUT ORIGINALLY CONCEPTUALLY WE WEREN'T AS TIGHT AS WE COULD HAVE BEEN DESPITE THE SELF CRITICISM MR. MULLEN SAYS CONSUMER RESEARCH SHOWED PEOPLE GOT THE RIGHT MESSAGE B. M. W. IS DYNAMIC COMFORTABLE AND AFFORDABLE QUOTE THIS YEAR B. M. W. ADS WILL CONCENTRATE ON FEATURES SUCH AS TRACTION CONTROL AND SUPERIOR ENGINEERING SAYS MR. MULLEN AS WELL AS NEW MODELS ALSO IN THE WORKS IS A VIDEO SALES TAPE ON B. M. W.'S TRACTION CONTROL THAT MR. MULLEN SAYS COULD POTENTIALLY ALSO BE USED AS AN INFOMERCIAL TO HIT THE AIRWAVES IN FEBRUARY WE'RE LOOKING AT ALTERNATIVE WAYS TO GET ACROSS OUR MESSAGE IT COULD RUN ON CABLE IN NONTRADITIONAL PROGRAMMING HE SAYS BUT NOTHING IS DECIDED IF B. M. W. INDEED PRODUCES AN INFOMERCIAL IT WILL JOIN OTHER MAJOR AUTO MAKERS INCLUDING VOLVO FORD AND GENERAL MOTORS' SATURN UNIT IN USING THE MEDIUM ACCORDING TO THE NATIONAL INFOMERCIAL MARKETING ASSOCIATION IN WASHINGTON D. C. B. M. W. SAYS MULLEN ADVERTISING WILL BE INSTRUMENTAL IN THESE MARKETING PLANS AND MR. MULLEN HOPES TO HEAR BETTER THINGS ABOUT SUBSEQUENT CAMPAIGNS SO FAR HE ADMITS FROM AN ADVERTISING PEER POINT OF VIEW THE ADS WERE CONSIDERED DISAPPOINTING PHILIP MORRIS'S KRAFT GENERAL FOODS AND MILLER BREWING COMPANY CONSOLIDATED SOME OF THEIR MEDIA BUYING WITH D'ARCY MASIUS BENTON AND BOWLES'S TELEVEST MEDIA UNIT EXACT BILLINGS INVOLVED IN THE CONSOLIDATION COULDN'T BE DETERMINED BUT EXECUTIVES ESTIMATE THEM AT MORE THAN SIXTY MILLION DOLLARS THE NEW ACCOUNT INCLUDES MILLER BREWING'S NATIONAL NONSPORTS ADVERTISING TIME PREVIOUSLY PURCHASED BY SAATCHI AND SAATCHI'S BACKER SPIELVOGEL BATES AND K. G. F.'S TIME IN ADULT SYNDICATION PROGRAMMING PREVIOUSLY SPLIT BETWEEN D. M. B. AND B. AND LEO BURNETT CHICAGO THE NEW ARRANGEMENT MAKES STRANGE BEDFELLOWS OUT OF D. M. B. AND B. AND MILLER D. M. B. AND B'S SAINT LOUIS OFFICE CREATES ADS FOR MILLER RIVAL ANHEUSER BUSCH BUT D. M. B. AND B. OFFICIALS SAID THE ARRANGEMENT WASN'T A CONFLICT QUOTE THIS IS A K. G. F. ASSIGNMENT GIVEN TO US BY A LONGSTANDING CLIENT QUOTE SAID MICHAEL MOORE D. M. B. AND B. EXECUTIVE VICE PRESIDENT IF THEY CHOOSE TO USE THEIR TIME FOR MILLER WE'RE NOT GOING TO KNOW IT UNTIL VERY LATE IN THE DAY AN ANHEUSER SPOKESMAN DECLINED TO COMMENT MILLER BREWING ALSO SAID IT HAS ASSIGNED CREATIVE DUTIES ON THE SHARP'S AND MILLER RESERVE BRANDS TO BACKER THE ACCOUNTS PREVIOUSLY AT LAUGHLIN SLASH CONSTABLE MILWAUKEE BILL ABOUT SEVENTEEN MILLION DOLLARS EXECUTIVES ESTIMATED IN ADDITION D'ARCY MASIUS BENTON AND BOWLES WON NEW CREATIVE DUTIES FROM K. G. F. FOR THE FRIEHOFER COOKIE ACCOUNT BILLINGS COULDN'T BE DETERMINED ALBANY N. Y. SHOP PARTNERS MEANY PREVIOUSLY HANDLED THE ACCOUNT LABATT LABATT BREWERIES A UNIT OF JOHN LABATT LIMITED OF TORONTO CHANGED AGENCIES FOR SEVERAL BEER ACCOUNTS IN CANADA THE BREWER MOVED ADVERTISING FOR ITS CANADIAN BEERS INCLUDING LABATT BLUE AND BLUE LIGHT TO THE TORONTO OFFICE OF AMMIRATI AND PURIS BOZELL PALMER BONNER A BOZELL JACOBS KENYON AND ECKHARDT UNIT WON NEW ASSIGNMENTS FOR BUDWEISER AND CARLSBERG BOTH OF WHICH LABATT DISTRIBUTES IN CANADA THE BUSINESS WAS PREVIOUSLY SPLIT AMONG AGENCIES INCLUDING W. P. P. GROUP'S J. WALTER THOMPSON YOUNG AND RUBICAM AND D'ARCY MASIUS BENTON AND BOWLES LABATT BILLS ABOUT FORTY MILLION CANADIAN DOLLARS THIRTY POINT THREE MILLION U. S. DOLLARS A YEAR IN CANADA ACCOUNT RUSSELL CORPORATION ALEXANDER CITY ALABAMA TAPPED OMNICOM GROUP'S B. B. D. O. FOR SPORTSWEAR AND TEAM UNIFORM ADVERTISING AN ESTIMATED TEN MILLION DOLLAR ACCOUNT PREVIOUSLY AT GILLIS ADVERTISING BIRMINGHAM ALABAMA BELGIAN UTILITY AND ENGINEERING COMPANY TRACTEBEL S. A. APPEARS POISED TO ACQUIRE AN ADDITIONAL FIFTY PERCENT STAKE IN DISTRIGAZ A GAS DISTRIBUTION MONOPOLY THE BELGIAN GOVERNMENT FRIDAY TOOK THE LONG AWAITED DECISION TO PRIVATIZE THE STATE HOLDING CONCERN SOCIETE NATIONALE D'INVESTISSEMENT WHOSE CROWN JEWEL IS A FIFTY PERCENT STAKE IN DISTRIGAZ OFFICIALLY KNOWN AS SOCIETE DE DISTRIBUTION DE GAZ SOCIETE NATIONALE HAS MOSTLY MINORITY HOLDINGS IN DOZENS OF BELGIAN COMPANIES AND THE SALE IS EXPECTED TO RAISE AROUND TWENTY BILLION BELGIAN FRANCS ABOUT FIVE HUNDRED FIFTY FIVE MILLION DOLLARS BUT WHILE THE FINANCE MINISTRY IS PRIVATIZING DISTRIGAZ WHICH SUPPLIES NATURAL GAS TO BELGIUM'S INDUSTRIAL USERS AT THE SAME TIME IT SAID IT PLANS TO QUOTE REINFORCE THE ROLE OF PUBLIC AUTHORITIES QUOTE IN REGULATING THE BELGIAN ENERGY MARKET GOVERNMENT OFFICIALS DECLINED TO ELABORATE BUT THE DECLARATION UNDERLINES BELGIAN OPPOSITION TO PLANS TO LIBERALIZE PROTECTED ENERGY MARKETS IN THE TWELVE NATION EUROPEAN UNION TRACTEBEL AN INDIRECT SUBSIDIARY OF FRANCE'S COMPANY FINANCIERE DE SUEZ ALREADY OWNS THIRTY THREE PERCENT OF DISTRIGAZ SO THE EXPECTED TRANSACTION WOULD BOOST ITS STAKE TO EIGHTY THREE PERCENT THE GOVERNMENT HOWEVER SAID IT WOULD RETAIN A GOLDEN SHARE IN DISTRIGAZ WHICH IT SAID WOULD GIVE IT THE RIGHT TO VETO ANY CHANGES IN DISTRIGAZ'S OWNERSHIP AND ANY COMPANY DECISIONS THAT CONTRADICT GOVERNMENT ENERGY POLICY OR THE GENERAL INTEREST THE DECEMBER TWENTY SECOND EDITORIAL PAGE ESSAY BY DOROTHY RABINOWITZ QUOTE AN ARMY OF SCHINDLERS FROM ITALY QUOTE PROPERLY RECOGNIZES THE EXTRAORDINARY EFFORTS OF THE ITALIAN NATION GENERALLY AND ITALY'S MILITARY IN PARTICULAR TO SAVE JEWS FROM EXTERMINATION IN A WORLD WHERE THE DEMOCRACIES DID PRECIOUS LITTLE TO PROVIDE A HAVEN FOR THOSE DESTINED TO DIE IN NAZI DEATH CAMPS THE INSPIRED COURAGE AND RESOURCEFULNESS OF GERMANY'S ITALIAN ALLY IN DEFYING HITLER DESERVES OUR ADMIRATION AND RESPECT AT THE SAME TIME LET US NOT FORGET TO ADD TO THE LIST OF SCHINDLER TYPE HEROES THE NATION OF DENMARK WHICH IN THE MIDST OF A BRUTAL NAZI OCCUPATION MANAGED TO SAVE ITS ENTIRE JEWISH POPULATION OF EIGHT THOUSAND FROM THE GAS CHAMBERS IN NINETEEN FORTY THREE AIDED AND ABETTED BY GERMAN OFFICERS WHO DEFIED BERLIN BY TIPPING OFF DANISH OFFICIALS TO NAZI PLANS TO ROUND UP ALL DANISH JEWS AND SHIP THEM TO CONCENTRATION CAMPS DENMARK'S TOTAL POPULATION LED BY KING CHRISTIAN X. ORGANIZED A MASSIVE UNDERGROUND EFFORT TO HIDE THE JEWS AND SMUGGLE THEM TO SWEDEN ACROSS THE SUND WATERWAY WHILE MUCH OF THE OCCUPYING GERMAN ARMY OBSTRUCTED GESTAPO PLANS BY LOOKING THE OTHER WAY WHAT MOTIVATES HEROES LIKE OSKAR SCHINDLER IS A SUBJECT FOR ENDLESS DEBATE WHAT IS IMPORTANT IS TO RECOGNIZE THEIR SELFLESS ACTS AND HOLD THEM UP AS EXAMPLES OF CONSCIENCE COMPASSION AND COURAGE FOR OTHERS TO FOLLOW ON JANUARY ELEVENTH IN OBSERVANCE OF THE FIFTIETH ANNIVERSARY OF THE DANISH RESCUE OF THE JEWS FIFTEEN THOUSAND HANDWRITTEN LETTERS OF THANKS FROM AMERICAN JEWISH CHILDREN TO THE PEOPLE OF DENMARK WILL BE PRESENTED BY A GROUP OF YOUNGSTERS TO LEIF DONDE CONSUL GENERAL OF DENMARK IN NEW YORK WHO WILL ACCEPT THEM ON BEHALF OF QUEEN MARGARETHE THE SECOND GRANDDAUGHTER OF KING CHRISTIAN X. THE LETTERS WILL BE DISPLAYED AT THE DANISH RESISTANCE MUSEUM IN COPENHAGEN MR. DONDE WAS ONE OF THE EIGHT THOUSAND JEWS WHO WERE SAVED BY HIS FELLOW DANES HALF A CENTURY AGO PRUDENTIAL SECURITIES INCORPORATED REELING FROM THE INVESTIGATION OF QUESTIONABLE SALES PRACTICES OF LIMITED PARTNERSHIPS HAS LAUNCHED A CONTEST THAT REWARDS BROKERS FOR ACCUMULATING ASSETS PRUDENTIAL'S SECOND FIRM WIDE ASSET GATHERING CONTEST A TRIBUTE TO EXCELLENCE BEGAN DECEMBER FIRST AND ENDS APRIL TWENTY NINTH THROUGH A COMPLEX POINTS SYSTEM THE SEVENTY FIVE TOP SELLING BROKERS ARE ELIGIBLE TO WIN A QUOTE LUXURIOUS QUOTE SIX DAY FIVE NIGHT FIRST CLASS TRIP FOR TWO TO LONDON AND PARIS THE NEXT ONE HUNDRED FIFTY TOP BROKERS CAN CLAIM A FOUR DAY TRIP TO A COLORADO SPRINGS COLORADO RESORT POINTS ARE ACCUMULATED BY BROKERS WHO SELL RETIREMENT PLANS AND COMMAND ACCOUNTS WHICH ARE MONEY MARKET ACCOUNTS THAT PAY FLUCTUATING INTEREST RATES AND PROVIDE CHECK WRITING PRIVILEGES NO ONE IS SUGGESTING PRUDENTIAL IS PEDDLING QUESTIONABLE PRODUCTS SUCH AS LIMITED PARTNERSHIPS FOR HIGHER COMMISSION RATES IN FACT BECAUSE THE PRODUCTS CARRY LESS RISK SOME ANALYSTS SEE NO HARM IN THE CONTEST AND THERE IS NOTHING IMPROPER ABOUT REWARDING PRODUCERS WHO ROUTINELY RECEIVE TRIPS AND BEEFED UP COMMISSIONS FOR PUSHING THE PRODUCT OF THE MONTH HOWEVER WITH PRUDENTIAL ENTRENCHED IN THE PARTNERSHIP CONTROVERSY THE CAMPAIGN CALLS INTO QUESTION THE PROPRIETY OF A CONTEST BASED MORE ON FINANCIAL INCENTIVES FOR BROKERS THAN ON SUITABILITY FOR CLIENTS GIVEN THE ADVERSE PUBLICITY THE FIRM IS GETTING IT IS SOMEWHAT INAPPROPRIATE TO HOLD A CONTEST TO REWARD BROKERS FOR GATHERING ASSETS SAID FIRST OF MICHIGAN ANALYST PERRIN LONG A PRUDENTIAL SPOKESMAN SAID THAT DESPITE THE TIMING THE FIRM SEES NOTHING WRONG WITH A CAMPAIGN THAT ENCOURAGES ASSET GATHERING THIS IS A HIGHLY FAVORABLE THING FOR CLIENTS SAID THE SPOKESMAN WILLIAM AHEARN IT'S NOT A TRANSACTION ORIENTED CONTEST AS IS THE CASE IN MOST SALES CONTESTS ON WALL STREET CLIENTS AREN'T TOLD ABOUT THE BROKER INCENTIVE PROGRAM SHOULD PRUDENTIAL HAVE SCRAPPED THE CONTEST GIVEN THE CURRENT CLIMATE IF THEY WANTED TO THEY COULD'VE CALLED IT OFF FIRST OF MICHIGAN'S MR. LONG SAID BUT OBVIOUSLY THEY DIDN'T WANT TO THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT IS THE NATION'S FOURTH LARGEST SECURITIES FIRM WITH ABOUT SIX THOUSAND BROKERS BUT WITH DEVELOPMENTS IN THE PARTNERSHIP SCANDAL CROPPING UP REGULARLY THERE IS CONCERN ABOUT ITS ABILITY TO RETAIN BROKERS ESPECIALLY IF THE FIRM CUTS OUT FINANCIAL INCENTIVES ANALYSTS SAY PERHAPS MINDFUL OF ITS PRESENT PARTNERSHIP TROUBLES HOWEVER THE PAMPHLET ALSO CARRIES A BLUNT WARNING TO BROKERS QUOTE ALL SALES EFFORTS IN THE PROGRAM MUST BE IN ACCORDANCE AND CONSISTENT WITH PRUDENTIAL SECURITIES' HIGH PROFESSIONAL STANDARDS AND MUST BE IN THE BEST INTEREST OF THE CLIENT QUOTE ITALIAN COMPUTER MAKER ING C. OLIVETTI AND C. COMPANY SAID ITS BOARD RESOLVED TO SUBMIT TO AN EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS A PROPOSAL TO ALLOW THE COMPANY TO RAISE UP TO ONE TRILLION LIRE FIVE HUNDRED EIGHTY FIVE MILLION DOLLARS QUOTE IN ONE OR MORE OPERATIONS QUOTE OVER A FIVE YEAR PERIOD AT THE SAME TIME THE BOARD WILL SUBMIT TO SHAREHOLDERS A PROPOSAL TO ISSUE BONDS IF NEEDED FOR UP TO THE SAME AMOUNT FOR THE SAME TIME PERIOD THE INFORMATION TECHNOLOGY INDUSTRY IS CURRENTLY UNDERGOING SWEEPING CHANGES WHICH WILL LEAD TO A NEW PERIOD OF MARKET GROWTH COMPANIES TODAY MUST THEREFORE BE ABLE TO RESPOND VERY RAPIDLY AS REGARDS BOTH CHANGES IN THEIR OFFERS AND INVESTMENTS OLIVETTI CHAIRMAN CARLO DE BENEDETTI SAID THIS APPLIES IN PARTICULAR TO MULTIMEDIA AN IMPORTANT NEW MARKET WHERE INNOVATIVE COMPUTER AND TELECOMMUNICATIONS TECHNOLOGIES CONVERGE WHICH AFFECTS EACH OF THE SECTORS IN WHICH WE OPERATE OLIVETTI INTENDS TO EXTEND ITS EUROPEAN LEADERSHIP TO THIS FIELD TOO HE SAID OLIVETTI ALSO ANNOUNCED THAT THE COMPANY'S SALES IN NINETEEN NINETY THREE REACHED EIGHT POINT SIX ONE OH TRILLION LIRE UP FROM EIGHT POINT OH TWO FIVE TRILLION LIRE IN NINETEEN NINETY TWO NO EARNINGS FIGURES WERE RELEASED MR. DE BENEDETTI SAID THE GAIN IN SALES AFTER TWO YEARS OF ZERO GROWTH REFLECTS THE MARKET'S APPRECIATION OF OLIVETTI'S NEW PRODUCT LINE AND IS AN INDICATION OF THE VITALITY WITH WHICH THE GROUP OPERATES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE THIRTY DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST THIRTY DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE ONE HUNDRED TWENTY DAY ESTIMATE THE U. S. FOREST SERVICE TAKING AIM AT A LONG STANDING POLICY THAT HEAVILY SUBSIDIZES CLEARCUTTING IN ALASKA'S ANCIENT FORESTS SAID IT INTENDS TO CANCEL A CONTRACT THAT PROVIDES HUGE AMOUNTS OF CHEAP TIMBER TO ALASKA PULP COMPANY THE CONTRACT IS ONE OF TWO UNUSUAL FIFTY YEAR PACTS THAT ENVIRONMENTALISTS AND MANY U. S. FOREST MANAGERS SAY HAVE PROMOTED SEVERE OVERCUTTING IN THE TONGASS NATIONAL FOREST A SEVENTEEN MILLION ACRE SEA OF GIANT SITKA SPRUCE AND OTHER OLD TREES THAT PROVIDE HABITAT FOR BEAR EAGLES SALMON AND MANY OTHER SPECIES IN SOUTHEAST ALASKA THE OTHER CONTRACT ALSO DATING FROM THE NINETEEN FIFTIES IS HELD BY KETCHIKAN PULP COMPANY A UNIT OF LOUISIANA PACIFIC COMPANY BECAUSE OF THE CONTRACTS' HEAVY SUBSIDIES WHICH UNTIL NINETEEN NINETY MADE A GIANT FIVE HUNDRED YEAR OLD TREE ABOUT THE SAME PRICE AS A SIX PACK OF BEER THE TONGASS IS PERENIALLY ONE OF THE BIGGEST MONEY LOSERS IN THE DEFICIT WRACKED FEDERAL FOREST SYSTEM ON FRIDAY THE FOREST SERVICE SAID ALASKA PULP WHICH IS OWNED BY JAPANESE INVESTORS BREACHED ITS CONTRACT BY CLOSING A PULP MILL AT SITKA IN SEPTEMBER THE SERVICE SAID THE CONTRACT WHICH ORIGINALLY WAS INTENDED TO SPUR DEVELOPMENT OF A TIMBER INDUSTRY IN ALASKA AND PROVIDE PERMANENT JOBS REQUIRED ALASKA PULP TO KEEP THE MILL OPEN HOWEVER BECAUSE OF A GLOBAL GLUT IN DISSOLVABLE PULP USED TO MAKE DISPOSABLE DIAPERS AND TOOTHBRUSH BRISTLES AMONG OTHER THINGS ALASKA PULP WAS LOSING MONEY ON THE OPERATION DESPITE THE SUBSIDIES IT HAS SHIFTED MUCH OF THE TIMBER TO A SAWMILL WHERE IT PRODUCES LUMBER FOR WHICH PRICES ARE NEAR RECORD HIGHS ALASKA PULP HAS THIRTY DAYS FROM THURSDAY TO COME UP WITH A PROPOSAL FOR RESOLVING ITS BREACH OF THE CONTRACT THE COMPANY SAID IT DOESN'T BELIEVE THE CONTRACT HAS BEEN BREACHED AND SAID IT HAS PROVIDED INFORMATION TO THE FOREST SERVICE THAT QUOTE WILL RESOLVE DIFFERENCES ON THE MATTER QUOTE BUT ENVIRONMENTAL ATTORNEYS DOUBT ALASKA PULP CAN DO THAT AND THEY HAILED THE FOREST SERVICE MOVE IT'S A GREAT DAY FOR THE TONGASS AND THE BEGINNING OF THE END FOR A LUNATIC POLICY SAID TOM CASSIDY AN OFFICIAL WITH AMERICAN RIVERS AN ENVIRONMENTAL GROUP WE NEED TO RETURN LOGGING IN THE TONGASS TO SUSTAINABLE LEVELS THE FOREST SERVICE'S MOVE MARKS A CHANGE OF COURSE FOR THE AGENCY WHICH HAD LONG RESISTED CALLS TO REVIEW THE TONGASS CONTRACTS ENVIRONMENTALISTS CREDITED THE CLINTON ADMINISTRATION AND IN PARTICULAR JACK WARD THOMAS A VETERAN WILDLIFE BIOLOGIST AND SPOTTED OWL EXPERT WHO RECENTLY WAS NAMED TO HEAD THE AGENCY MR. THOMAS PRESENTLY IS REVIEWING A BIG SALE OF TONGASS TIMBER TO KETCHIKAN PULP ON REMOTE CROWN PRINCE WILLIAM ISLAND AFTER A FOREST SERVICE SCIENTIST INVOLVED IN THE SALE FILED A WHISTLE BLOWER COMPLAINT ALLEGING THAT THE SALE IGNORES SCIENTIFIC EVIDENCE THAT IT WILL SEVERELY DAMAGE WILDLIFE IN HER DECEMBER FIFTEENTH LETTER RESPONDING TO MY DECEMBER SIXTH EDITORIAL PAGE PIECE QUOTE A SCOPES TRIAL FOR THE NINETIES QUOTE EUGENIE SCOTT CLAIMS THAT PROFESSOR DEAN KENYON AND I MISUNDERSTAND THE NATURE OF SCIENCE WHAT SHE MEANS OF COURSE IS THAT WE UNDERSTAND IT AND ITS CURRENT ARBITRARY PROHIBITIONS ALL TOO WELL THE KENYON CASE UNDERSCORES A FACT THAT DOCTOR SCOTT AND OTHERS IN THE FULL TIME EVOLUTION LOBBY WOULD PREFER NOT TO FACE HIGHLY QUALIFIED COLLEAGUES NOW CONTEST HER RIGIDLY MATERIALISTIC VIEW OF SCIENCE INSTEAD OF RESPONDING TO THIS CHALLENGE DOCTOR SCOTT SIMPLY REASSERTS HER METHODOLOGICAL CREDO ALL SCIENTIFIC EXPLANATIONS MUST BE MATERIALISTIC AS IF THAT SHOULD SETTLE THE MATTER YET QUESTIONS OF APPROPRIATE METHOD MUST BE DEBATED EVERY BIT AS MUCH AS COMPETING THEORIES ORIGIN OF LIFE SCIENTISTS MUST NOW DECIDE WHETHER THEORISTS ARE FREE TO FOLLOW EVIDENCE WHEREVER IT MIGHT LEAD OR WHETHER THEY MAY CONSIDER ONLY CERTAIN KINDS OF EXPLANATIONS AS DOCTOR SCOTT INSISTS THIS DEBATE WILL NOT GO AWAY WITH RECENT DEVELOPMENTS IN PROBABILITY AND COMPLEXITY THEORY THE DETECTION OF INTELLIGENT DESIGN HAS ALREADY ENTERED SCIENCE PROPER NASA'S ONE HUNDRED MILLION DOLLARS SEARCH FOR EXTRATERRESTRIAL INTELLIGENCE SETI IS BASED UPON THE ABILITY TO DETECT THE STATISTICAL AND MATHEMATICAL SIGNATURE OF INTELLIGENTLY ENCODED MESSAGES TO PROFESSOR KENYON THE PRESENCE OF BIOCHEMICAL MESSAGES AND A CORRESPONDING MOLECULAR GRAMMAR IN THE CELL STRONGLY SUGGEST A PRIOR INTELLIGENT DESIGN HE MAY BE WRONG OR HE MAY BE RIGHT WHAT IS CERTAIN IS THAT HIS ARGUMENT IS BASED NEITHER ON IGNORANCE NOR RELIGIOUS AUTHORITY INSTEAD HE HAS MADE AN INFERENCE FROM BIOLOGICAL DATA INFORMED BY A SOPHISTICATED CONSIDERATION OF THE INFORMATIONAL SCIENCES IT NO DOUBT SERVES THE PURPOSES OF DOCTOR SCOTT AND DOCTOR HAFERNICK AT SFSU TO PORTRAY PROFESSOR KENYON AS A RELIGIOUS FUNDAMENTALIST UNWILLING TO REVISE DOGMA IN THE FACE OF NEW EVIDENCE BY NOW IT MUST BE CLEAR THAT IT IS THEIR FUNDAMENTALISM NOT PROFESSOR KENYON'S THAT IS ON TRIAL DOCTOR SCOTT MENTIONS THAT THEORETICIANS RELY ON MATERIALIST EXPLANATIONS THEY ARE DOING SCIENCE HER CASE AGAINST PROFESSOR KENYON IF PUT INTO SYLLOGISTIC FORM GOES LIKE THIS WHAT THEN DO THESE GUYS DO WHO TELL US THAT MATTER IS ENERGY DO THESE GUYS A. EINSTEIN AND COMPANY PAVE THE WAY FOR MATERIALIST EXPLANATIONS OR DO THEY LEAVE BEHIND MATERIALIST EXPLANATIONS AS IF THEY WERE NINETEENTH CENTURY FOSSILS THOMAS JUKES IN HIS LETTER TO THE EDITOR WRITES THAT DOCTOR KENYON'S ARGUMENTS FOR INTELLIGENT DESIGN PRESUPPOSE THE EXISTENCE OF A CREATOR AND ARE THEREFORE RELIGIOUSLY BIASED THIS SOUNDS GOOD BUT IT DOESN'T DO JUSTICE TO PROFESSOR KENYON'S EXPERIENCE DOCTOR KENYON MR. JUKES CONCEDES WAS ONCE AN ACKNOWLEDGED EXPERT ON EVOLUTIONARY THEORY AND A WORLD CLASS SCIENTIST BUT THESE ENCOMIUMS ARE LONG OUT OF DATE FOR ABOUT SIXTEEN YEARS AGO KENYON BECAME PREOCCUPIED WITH RELIGIOUS CONCEPTS OF BIOLOGY INTELLIGENT DESIGN IT IS CLEAR THAT DOCTOR KENYON COULD NOT HAVE EARNED HIS PRIOR REPUTATION WITH THIS CROWD HAD HE NOT PRESUPPOSED A MATERIALIST EXPLANATION NOTE THE CHRONOLOGY DOCTOR KENYON'S MATERIALIST PRESUPPOSITIONS ANTEDATED HIS SUDDEN SPONTANEOUSLY GENERATED PREOCCUPATION WITH INTELLIGENT DESIGN THIS SUGGESTS THAT DOCTOR KENYON DID NOT COME TO QUOTE RELIGIOUS CONCEPTS QUOTE BY WAY OF RELIGIOUS PRESUPPOSITIONS HE CAME TO QUOTE INTELLIGENT DESIGN QUOTE BY EXAMINING HIS MATERIALIST BIAS WHILE DOING SCIENCE IN A PIECE ENTITLED THE RELIGIOUS SPIRIT OF SCIENCE ALBERT EINSTEIN WROTE THAT THE SCIENTIST'S RELIGIOUS FEELING TAKES THE FORM OF A RAPTUROUS AMAZEMENT AT THE HARMONY OF NATURAL LAW WHICH REVEALS AN INTELLIGENCE OF SUCH SUPERIORITY THAT COMPARED WITH IT ALL THE SYSTEMATIC THINKING AND ACTING OF HUMAN BEINGS IS AN UTTERLY INSIGNIFICANT REFLECTION INCLUDED IN DOCTOR SCOTT'S CRITICISM OF PROFESSOR KENYON IS ONE OF HIS BOOKS OF PANDAS AND PEOPLE DOCTOR SCOTT SAYS PROFESSOR KENYON CLAIMS IN PANDAS THAT TWO COMPLETELY HYBRID SIC INDIVIDUALS COULD PRODUCE OFFSPRING EXHIBITING THE COMPLETE RANGE OF POSSIBLE SKIN COLORS A STATEMENT BREATHTAKINGLY IGNORANT OF GENETICS THE BOOK'S STATEMENT IS CORRECT AND NO MORE CONTROVERSIAL THAN SAYING TWO MUTTS COULD HAVE LIGHT FURRED DARK FURRED AND SPOTTED PUPPIES DOCTOR SCOTT FURTHER CHARGES THAT THE STATEMENT EXPLAINS FOR THE READER HOW THE GREAT RANGE OF HUMAN SKIN COLORS COULD ARISE FROM NOAH AND HIS FAMILY THIS ASSERTION IS FALSE THE BOOK HAS NOTHING TO SAY ABOUT NOAH HIS FLOOD OR ANY OTHER BIBLICAL MATTER X. RITE INCORPORATED GRANDVILLE MICHIGAN BRUCE JORGENSEN FIFTY YEARS OLD FORMERLY DIRECTOR POLYOLEFINS SALES AND MARKETING WITH EXXON CORPORATION IN HONG KONG WAS NAMED VICE PRESIDENT OF SALES AND MARKETING AT THIS MANUFACTURER OF COLOR MEASUREMENT INSTRUMENTS BIG SIX ACCOUNTING FIRM COOPERS AND LYBRAND SAID EUGENE M. FREEDMAN WILL RETIRE AS CHAIRMAN TOWARD THE END OF THE YEAR THERE HAD BEEN SPECULATION THAT MR. FREEDMAN SIXTY ONE YEARS OLD WOULD SEEK A VOTE TO CHANGE THE FIRM'S BYLAWS REGARDING RETIREMENT AGE THEREBY ENABLING HIM TO RUN FOR A SECOND THREE YEAR TERM WHEN HIS CURRENT TERM ENDS IN THE FALL MR. FREEDMAN SAID HE HAD CIRCULATED A CONFIDENTIAL POLL AMONG THE FIRM'S ONE THOUSAND TWO HUNDRED FIFTY PARTNERS AND HAD RECEIVED QUOTE VERY SUBSTANTIAL BUT NOT OVERWHELMING QUOTE SUPPORT FOR A POSSIBLE RE ELECTION BID MR. FREEDMAN WILL RETIRE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE U. S. UNIT ON SEPTEMBER THIRTIETH AND AS CHAIRMAN OF THE PARENT COMPANY IN LATE OCTOBER THE FOUR PARTNERS WHO RAN AGAINST MR. FREEDMAN THREE YEARS AGO ARE SAID TO BE LEADING CONTENDERS TO SUCCEED HIM TWO VICE CHAIRMEN JOHN ROBERTS FORTY EIGHT AND STEPHEN MCKESSY FIFTY SIX ARE CONSIDERED BY SOME TO BE THE FAVORITES ANOTHER VICE CHAIRMAN WILLIAM O'BRIEN FORTY NINE AND VINCENT O'REILLY CHIEF OPERATING OFFICER FIFTY SIX ALSO ARE LIKELY TO BE IN THE RUNNING MR. FREEDMAN IS CREDITED WITH ATTRACTING A LOT OF BUSINESS FOR COOPERS AND LYBRAND AS WELL STEERING IT TOWARD MORE PROFITABLE BUSINESS OPPORTUNITES FOR INSTANCE HE URGED THAT THE FIRM ENTER THE BUSINESS OF PROVIDING OUTSOURCING SERVICES FOR INTERNAL AUDITS AND TAXATION FOR CORPORATIONS HE ALSO STARTED A TEN MILLION DOLLAR ADVERTISING AND PROMOTIONAL CAMPAIGN AND HELPED REDEFINE OUR LINES OF BUSINESS ONE PARTNER SAID FOR THE YEAR ENDED SEPTEMBER THIRTIETH COOPERS AND LYBRAND HAD WORLD WIDE REVENUE OF FIVE POINT TWO TWO BILLION DOLLARS MR. FREEDMAN HAD A REPUTATION FOR PUSHING EMPLOYEES HARD TO LURE NEW CLIENTS GENE IS ENTREPRENEURIAL ONE PARTNER SAID SOME PARTNERS HAD A FEAR OF CHANGE AND WONDERED ABOUT THE CHALLENGES MR. FREEDMAN BROUGHT TO THE FIRM PEOPLE FAMILIAR WITH THE SITUATION SUGGESTED THAT MR. FREEEDMAN FAILED TO RECEIVE UNANIMOUS SUPPORT FOR A RE ELECTION EFFORT BECAUSE SOME PARTNERS WERE RELUCTANT TO CHANGE THE FIRM'S LONG STANDING BYLAWS COOPERS AND LYBRAND'S PARTNERSHIP AGREEMENT REQUIRES THAT PARTNERS RETIRE FROM THE FIRM AT THE END OF THE FISCAL YEAR IN WHICH THEY TURN SIXTY TWO MR. FREEDMAN SAID HE RESPECTS THE OPPOSITION OF SOME PARTNERS TO NOT CHANGE THE BYLAWS WHILE NOTING THAT HE PLANNED TO PURSUE OTHER BUSINESS OPPORTUNITIES HE WAS ALSO UPBEAT ABOUT COOPERS AND LYBRAND'S PROSPECTS THE FIRM IS ON A ROLL HE SAID QUOTE IT'S LEANER WE'VE BROUGHT IN NEW WORK AND IT'S INCREASINGLY PROFITABLE QUOTE HE SAID THE FIRM WILL NAME A NEW CHAIRMAN IN MAY OR JUNE DEUTSCHE LUFTHANSA THE STATE CONTROLLED GERMAN AIRLINE ACHIEVED ITS NINETEEN NINETY THREE GOAL OF HALVING ITS NINETEEN NINETY TWO OPERATING LOSS JUERGEN WEBER CHAIRMAN OF THE AIRLINE'S MANAGEMENT BOARD SAID AT A CONFERENCE IN BONN THAT THE GOAL HAS BEEN REACHED AND POSSIBLY EXCEEDED HE WASN'T MORE SPECIFIC LUFTHANSA'S NINETEEN NINETY TWO OPERATING LOSS TOPPED ONE BILLION MARKS FIVE HUNDRED SEVENTY ONE POINT THREE MILLION DOLLARS THE COMPANY'S NINETEEN NINETY FOUR GOAL IS TO BREAK EVEN MR. WEBER SAID NELSON MANDELA'S AFRICAN NATIONAL CONGRESS WITH AN EYE ON SOUTH AFRICA'S FIRST FREE ELECTIONS IN APRIL UNVEILED FAR REACHING PROPOSALS AIMED AT HELPING THE VICTIMS OF APARTHEID QUOTE AN ELECTION VICTORY IS ONLY A FIRST STEP QUOTE DECLARED THE A. N. C. WHICH IS WIDELY EXPECTED TO DOMINATE THE GOVERNMENT THAT WILL TAKE OFFICE AFTER THE ELECTIONS SCHEDULED FOR APRIL TWENTY SEVENTH NO POLITICAL DEMOCRACY CAN SURVIVE AND FLOURISH IF THE MASS OF OUR PEOPLE REMAIN IN POVERTY WITHOUT LAND WITHOUT TANGIBLE PROSPECTS FOR A BETTER LIFE IT SAID IN A DRAFT OF ITS RECONSTRUCTION AND DEVELOPMENT PROGRAM THE PROPOSALS HAVE CAUSED CONCERN AMONG INVESTORS THAT THEY COULD LEAD TO NATIONALIZATION OF SOME INDUSTRIES IN A DRAFT DOCUMENT RELEASED LAST WEEK THE A. N. C. CALLED FOR REVAMPING THE MINING INDUSTRY TO ENSURE ASSETS ARE SHARED BY ALL AMONG OTHER THINGS THE DOCUMENT SUGGESTS MOVING AWAY FROM PRIVATE MINE OWNERSHIP BY INSTITUTING A TAX ON MINERAL RIGHTS AND EXPROPRIATING MINES WHOSE OWNERS ARE WILLING WITHOUT CITING SPECIFIC INDUSTRIES THE A. N. C. ON FRIDAY RESERVED THE RIGHT TO EXPAND THE PUBLIC SECTOR IN STRATEGIC AREAS THROUGH STATE TAKEOVER OF INDUSTRY NEW VENTURES OR JOINT VENTURES WITH THE PRIVATE SECTOR A. N. C. ECONOMIC CHIEF TREVOR MANUEL DECLINED TO ELABORATE ON POSSIBLE NATIONALIZATIONS STRESSING THAT THE DOCUMENT WAS A FRAMEWORK ON WHICH OTHER KEY PLAYERS WOULD BE CONSULTED THE STATE COULD IN SOME CIRCUMSTANCES ENLARGE OR REDUCE HE TOLD REPORTERS THERE IS NO IDELOGICAL WEDDING TO NATIONALIZATIONS THE A. N. C. HAS DENIED THAT IT PLANS TO NATIONALIZE PROPERTY CALLING INSTEAD FOR A SPECIAL COURT THAT WOULD SETTLE OWNERSHIP CLAIMS AND SET PRICES FOR WHITE OWNED LAND SLATED FOR REDISTRIBUTION THE PROGRAM FAVORS A MIXED ECONOMY IN WHICH THE GOVERNMENT WOULD PLAY A LEADING BUT FLEXIBLE ROLE IN WHAT IT CALLED A BALANCE BETWEEN STATE PRIVATE SECTOR AND CIVIC INTERESTS THE DOCUMENT OUTLINES PUBLIC WORKS PROJECTS TO CREATE JOBS BUILD MORE THAN ONE MILLION HOUSES ELECTRIFY TWO POINT FIVE MILLION HOMES AND EXTEND AFFORDABLE HEALTH CARE CLEAN WATER AND SANITATION TO ALL IT CALLED THE PROGRAMS ACHIEVABLE OVER FIVE YEARS IT ALSO SAID ITS POLICIES WOULD SEEK TO FOSTER FOREIGN INVESTMENT IN SOUTH AFRICA STABLE CONSISTENT AND PREDICTABLE POLICIES AS WELL AS A DYNAMIC ECONOMY SHOULD CREATE A CLIMATE CONDUCIVE TO FOREIGN INVESTMENT THE DOCUMENT SAID THE DOCUMENT SAID SOUTH AFRICA'S MINING INDUSTRY THE BACKBONE OF THE ECONOMY AND CURRENTLY DOMINATED BY SIX CONGLOMERATES SHOULD BE REFORMED THROUGH APPROPRIATE ANTITRUST LEGISLATION THE PLAN WILL BE SUBMITTED TO A POLICY MAKING CONFERENCE ON JANUARY TWENTY SECOND AND TWENTY THREE OF THE A. N. C. AND ITS ALLIED SOUTH AFRICAN COMMUNIST PARTY AND CONFEDERATION OF SOUTH AFRICAN TRADE UNIONS THE MEASURES WOULD INCLUDE AFFIRMATIVE ACTION TO ADDRESS GAPS IN WEALTH OPPORTUNITIES AND SKILLS IN AN ECONOMY THAT MR. MANUEL SAID WAS RAVAGED BY APARTHEID HE DID NOT RULE OUT QUOTAS MR. MANUEL DECLINED TO ESTIMATE TOTAL FUNDING NEEDS FOR RECONSTRUCTION WHICH THE DEVELOPMENT BANK OF SOUTHERN AFRICA HAS SAID COULD COST TWENTY FIVE BILLION DOLLARS OVER TEN YEARS SEPARATELY IN PRETORIA RIGHT WING LEADERS AGREED FRIDAY TO RESUME NEGOTIATIONS WITH THE GOVERNMENT AND A. N. C. ON THE TRANSITION TO A POST APARTHEID DEMOCRACY PITTSTON COMPANY SAID IT COMPLETED THE ACQUISITION OF MOST OF THE COAL MINING ASSETS AND COAL SALES CONTRACTS OF ADDINGTON RESOURCES INCORPORATED WHEN IT REACHED A DEFINITIVE AGREEMENT IN SEPTEMBER PITTSTON SAID THE ONE HUNDRED FIFTY SEVEN MILLION DOLLAR ACQUISITION WOULD INCREASE ITS PITTSTON MINERALS GROUP'S TOTAL COAL PRODUCTION FIFTY PERCENT PITTSTON SAID IT INTENDS TO ISSUE CONVERTIBLE PREFERRED STOCK TO HELP PAY FOR THE ACQUISITION PITTSTON HAS BUSINESSES IN COAL GOLD MINING SECURITY SERVICES AND AIR FREIGHT ADDINGTON RESOURCES IS BASED IN ASHLAND KENTUCKY FOR MANY ATTORNEYS IT IS THE ULTIMATE EXPERIENCE IN LEGAL ADVOCACY ARGUING A CASE BEFORE THE U. S. SUPREME COURT QUOTE YOU WALK INTO THE BUILDING AND YOU SEE THE COURTROOM IS FOUR MILES HIGH QUOTE SAYS PHILADELPHIA LAWYER STEPHEN LACHEEN IT'S THE BIGS IT'S THE TOPS AND IT TAKES YOUR BREATH AWAY BUT WITH NINE JUSTICES IN BLACK ROBES LOOMING DOWN FROM A MAHOGANY BENCH JUST A FEW FEET FROM THE LAWYERS' LECTERN THE ENCOUNTERS CAN ALSO BE BRUISING ONLY A MINUTE INTO HIS ARGUMENT ALFREDO PARRISH OF DES MOINES IOWA IS ABRUPTLY TOLD BY THE CHIEF JUSTICE OF THE U. S. THAT HE HAS FLATLY MISINTERPRETED A MAJOR PRECEDENT IT FEELS MR. PARRISH SAYS LIKE SOMEONE PUNCHED ME DIRECTLY IN THE FACE THE HIGH COURT'S ORAL ARGUMENTS THERE WILL BE ABOUT ONE HUNDRED OF THEM THIS TERM ARE ITS ONLY SUBSTANTIAL PUBLIC ACTIVITY IN A SURPRISING NUMBER OF CASES THE ARGUMENTS ARE A BUST ONE EXPLANATION MAY BE A CHANGE IN WHO IS DOING THE ARGUING IN SOME PERIODS IN THE PAST SMALL ELITE GROUPS OF LAWYERS DOMINATED SUPREME COURT ADVOCACY BUT THESE DAYS IF LAWYERS PERSUADE THE HIGHEST COURT IN THE LAND TO HEAR THEIR CASE MANY CAN'T RESIST THE ONCE IN A LIFETIME CHANCE TO ARGUE BEFORE THE JUSTICES THEMSELVES THE RESULT SAYS HARVARD LAW PROFESSOR CHARLES FRIED IS GREATER VARIABILITY IN THE QUALITY OF ARGUMENT THAN IS MERITED BY THE IMPORTANCE OF THE HIGH COURT'S BUSINESS THAT'S LAWYER TALK FOR THE ARGUMENTS OFTEN AREN'T AS GOOD AS THEY USED TO BE PRIVATELY JUSTICES ANTONIN SCALIA AND CLARENCE THOMAS HAVE TOLD FRIENDS THEY NOTICED A DROP IN THE QUALITY OF ADVOCACY WHEN THEY MOVED TO THE TOP COURT FROM THE FEDERAL APPEALS COURT IN WASHINGTON THE MOST COMMON REASON ATTORNEYS RUN INTO TROUBLE IS THAT THEY ARRIVE SEEMINGLY OBLIVIOUS TO WHAT THE JUSTICES EXPECT FROM THEM MANY NEWCOMERS GET HERE THINKING THE COURT WORRIES ONLY ABOUT FAIRNESS SAYS SUPREME COURT CLERK WILLIAM SUTER BUT THIS ISN'T A BIG JUDGE WAPNER'S PEOPLE'S COURT YOU HAVE TO ARGUE THE SPECIFIC JURISPRUDENTIAL QUESTION THE JUSTICES AGREED TO DECIDE LAWYER JOHN BISBEE DISCOVERS THIS WHEN HE INSISTS ON COMPLAINING ABOUT HOW AN ILLINOIS HOSPITAL WRONGLY FIRED HIS CLIENT A NURSE JUST BECAUSE SHE COMPLAINED TO COLLEAGUES ABOUT MANAGEMENT UNFORTUNATELY FOR MR. BISBEE THE JUSTICES HAD ASKED HIM AND OPPOSING COUNSEL TO DISCUSS THE CASE'S FIRST AMENDMENT IMPLICATIONS AMONG OTHER THORNY LEGAL QUESTIONS QUOTE WE DIDN'T TAKE THIS CASE TO DETERMINE WHO SAID WHAT TO WHOM IN THE CAFETERIA QUOTE LECTURES JUSTICE ANTHONY KENNEDY CARL LUNDBERG THE CHIEF COUNSEL FOR SOUTH CAROLINA'S PAROLE BOARD GETS EVEN TOUGHER TREATMENT HE HAS SHOWN UP FOR AN ORAL ARGUMENT WITH THE SHEEPISH ADMISSION THAT HE HAD NEGLECTED UNTIL THE DAY BEFORE TO INFORM THE JUSTICES OF A LEGISLATIVE CHANGE THAT POSSIBLY MADE HIS APPEAL MOOT YOU COME IN HERE WITH A FOUR AND A HALF MONTH OLD STATUTE AND PRESENT IT TO US THE EVE OF ARGUMENT SNAPS JUSTICE HARRY BLACKMUN YOU SURELY DON'T PRACTICE LAW THAT WAY IN SOUTH CAROLINA DO YOU NO YOUR HONOR THE LAWYER REPLIES APOLOGIZING THAT HE SIMPLY HADN'T NOTICED THE AMENDMENT EARLIER THE JUSTICES GO THROUGH THE MOTIONS OF HEARING MR. LUNDBERG'S APPEAL THEN DISMISS IT A FEW WEEKS LATER WITHOUT EVEN WRITING AN OPINION JUSTICE SANDRA DAY O'CONNOR ISN'T AMUSED SHE NOTES TARTLY THAT SINCE THE SUPREME COURT ITSELF MIGHT LIKE TO ANALYZE THE CASE PERHAPS MR. SENECA OUGHT TO OFFER SOME THOUGHTS ON THE LEGAL MERITS BUT DESPITE FURTHER PRODDING FROM OTHER JUSTICES HE RESISTS THE JUSTICES HE CONCEDES AFTERWARD WEREN'T HAPPY ABOUT HIS APPROACH THEY BEAT UP ON ME SOME JUSTICES HARDLY EVER ASK QUESTIONS AT ORAL HEARINGS JUSTICE BLACKMUN WORRIED IN A RECENT INTERVIEW ON A. B. C. T. V.'S NIGHTLINE THAT PEOPLE PERCEIVE HIM AS JUST SITTING THERE LIKE A BUMP ON A LOG BUT HE QUICKLY ADDED QUOTE AT LEAST I'M A LITTLE MORE TALKATIVE THAN JUSTICE THOMAS QUOTE WHO ALMOST NEVER SAYS A WORD BACK AND FORTH GOES THE EXCHANGE ON THE BENCH UNTIL THE RED LIGHT ON THE LECTERN FLASHES ON SIGNALING THAT AN ATTORNEY'S THIRTY MINUTES ARE UP THANK YOU MS. FOSTER CHIEF JUSTICE WILLIAM REHNQUIST INTONES THEN HE ADDS I THINK YOU DID VERY WELL IN THE FOUR MINUTES THAT THE COURT ALLOWED YOU MS. FOSTER LEAVES A BIT PUZZLED SINCE THE COURT ITSELF APPOINTED HER TO ARGUE THE CASE THEY WANTED ME TO COME TO WASHINGTON SHE SAYS BUT THEN THEY DIDN'T SEEM TO LISTEN VERY MUCH ORAL ARGUMENTS DON'T NECESSARILY DETERMINE RESULTS OF COURSE SOME LAWYERS EVEN SAY THAT THE ARGUMENTS DON'T MATTER AT ALL BECAUSE THE JUSTICES HAVE ALREADY MADE UP THEIR MINDS BASED ON WRITTEN BRIEFS THAT'S WRONG ACCORDING TO PRIVATE COMMENTS BY SEVERAL JUSTICES CHIEF JUSTICE REHNQUIST HAS WRITTEN THAT IN A SIGNIFICANT MINORITY OF CASES HE LEAVES ORAL ARGUMENTS FEELING DIFFERENT ABOUT THE CASE IF RARELY CHANGING HIS VIEWS COMPLETELY MR. SUTER THE COURT CLERK A FEW YEARS BACK BEGAN OFFERING GROUP TUTORIALS ON BASIC ETIQUETTE FOR THE UNINITIATED AMONG HIS TIPS WHEN THE JUSTICES ASK FOR A YES OR NO ANSWER GIVE IT TO THEM YET MANY LAWYERS ARRIVE UNPREPARED EVEN FOR PREDICTABLE QUERIES ONE OF CHIEF JUSTICE REHNQUIST'S FAVORITES IS QUOTE WHAT AUTHORITY DO YOU HAVE FOR THAT PROPOSITION COUNSEL QUOTE OFTEN COUNSEL HAS NONE ONE CONSOLATION FOR THE HARRIED ADVOCATE IS THAT ROUGH TREATMENT AT ORAL ARGUMENTS DOESN'T ALWAYS FORESHADOW DEFEAT MR. LACHEEN THE LAWYER FROM PHILADELPHIA TAKES A LOT OF FLAK WHEN HE PASSIONATELY INSISTS THAT EVEN THOUGH HIS CLIENTS AN OREGON COUPLE CONVICTED OF MONEY LAUNDERING EVADED FEDERAL CURRENCY REPORTING REQUIREMENTS THEY DID SO WITH NONCRIMINAL MOTIVES SEEMINGLY MOST SKEPTICAL IS JUSTICE SCALIA WHO NOTES THAT CONGRESS CAN PASS CRIMINAL LAWS WITHOUT REQUIRING A BAD MOTIVE ESPECIALLY IF IN THE VAST MAJORITY OF CASES IT'S GOING TO BE PICKING UP PEOPLE WHO DO HAVE SOME NEFARIOUS MOTIVE THUNDERING WITH INDIGNATION MR. LACHEEN DECLARES I DON'T THINK THAT WE'VE GOTTEN TO THE POINT WHERE WE DON'T MIND CONVICTING INNOCENT PEOPLE BECAUSE WE'RE GOING TO GET SOME GUILTY PEOPLE WITH THE SAME ACT WHAT INNOCENT JUSTICE SCALIA FIRES BACK THEY VIOLATED THE LAW QUOTE THEY DIDN'T KNOWINGLY VIOLATE THE LAW QUOTE THE ATTORNEY INSISTS LAST MONDAY THE COURT RULED FIVE TO FOUR IN FAVOR OF MR. LACHEEN'S CLIENTS BECAUSE THEY HADN'T BEEN FOUND TO HAVE KNOWINGLY VIOLATED THE LAW JUSTICE SCALIA JOINED THE MAJORITY OPINION WRITTEN BY JUSTICE GINSBURG WHILE MOST MAJOR STUDIO EXECUTIVES HAVE AVOIDED PUTTING THE SUBJECT OF AIDS ON THE BIG SCREEN CONVINCED IT WOULD AMOUNT TO BOX OFFICE POISON TRISTAR PICTURES TOOK THE RISK AND STELLAR RETURNS ARE POURING IN QUOTE PHILADELPHIA QUOTE A DRAMA IN WHICH TOM HANKS PLAYS A GAY LAWYER WHO IS FIRED BECAUSE HE HAS AIDS WAS THE NUMBER ONE MOVIE AT THE NATION'S THEATERS OVER THE WEEKEND CHARTING AN ESTIMATED THREE DAY GROSS OF TWELVE POINT ONE MILLION DOLLARS EVERYONE INVOLVED WITH PHILADELPHIA WANTED VERY MUCH TO MAKE A FILM THAT WOULD PLAY IN EVERY CITY AND EVERY TOWN ACROSS AMERICA SAYS MARC PLATT PRESIDENT OF TRISTAR A UNIT OF SONY CORPORATION'S SONY PICTURES ENTERTAINMENT IT SEEMS AS THOUGH THAT GOAL HAS BEEN ACHIEVED THE MOVIE RECEIVED MIXED CRITICAL REVIEWS EVEN IN THE GAY COMMUNITY WHICH HAS CRITICIZED HOLLYWOOD FOR FAILING TO DO A FILM ON AIDS SOME HAVE ATTACKED PHILADELPHIA AS TOO TIMID THE FILM HAD BEEN PLAYING AT JUST FOUR THEATERS IN NEW YORK LOS ANGELES AND TORONTO SINCE DECEMBER TWENTY SECOND IN A DISTRIBUTION STRATEGY CALLED PLATFORMING STUDIOS TYPICALLY PLATFORM TOUGH SELL FILMS BY OPENING THEM IN A HANDFUL OF BIG CITIES THEY HOPE THE BUZZ CREATED IN THE BIGGER MARKETS THEN TRAVELS TO THE REST OF THE COUNTRY AND BUILDS ANTICIPATION IN THIS CASE IT WORKED AND EVEN FRIGID TEMPERATURES IN MUCH OF THE COUNTRY DIDN'T DAMP TICKET SALES PHILADELPHIA JUMPED TO ONE THOUSAND TWO HUNDRED FORTY FIVE THEATERS ON FRIDAY AND POSTED AN IMPRESSIVE PER SCREEN AVERAGE OF NINE THOUSAND SEVEN HUNDRED THIRTY FIVE DOLLARS TRISTAR SAID THE BOX OFFICE TAKE WAS THE LARGEST EVER JANUARY MOVIE OPENING TOPPING QUOTE BORN ON THE FOURTH OF JULY QUOTE THAT FILM HAD OPENED IN A FEW THEATERS AT THE END OF NINETEEN EIGHTY EIGHT BEFORE EXPANDING SCREENS EARLY IN NINETEEN EIGHTY NINE ANOTHER TOUGH SELL MOVIE STEVEN SPIELBERG'S HOLOCAUST EPIC SCHINDLER'S LIST ALSO IS FINDING SUCCESS WITH A PLATFORM RELEASE BUT UNIVERSAL PICTURES IS TAKING A SLOWER APPROACH SCHINDLER'S LIST OPENED DECEMBER THIRTEENTH IN TWENTY FIVE THEATERS EXPANDED TO ONE HUNDRED SEVENTY TWO ON JANUARY SEVENTH AND ON FRIDAY WIDENED TO TWO HUNDRED FIFTY THREE THEATERS SCHINDLER'S LIST WAS THE NUMBER TEN MOVIE AT THE BOX OFFICE THIS PAST WEEKEND SELLING ABOUT THREE MILLION DOLLARS IN TICKETS OR A PER SCREEN AVERAGE OF ELEVEN THOUSAND EIGHT HUNDRED DOLLARS THAT'S A VERY HEALTHY GROSS CONSIDERING THE SMALL NUMBER OF THEATERS PLAYING IT THE PICTURE'S LENGTH WELL OVER THREE HOURS ALSO MEANS THAT MOST THEATERS CAN SCHEDULE ONLY THREE SHOWINGS A DAY FRED MOUND PRESIDENT OF DISTRIBUTION AT UNIVERSAL SAYS HE DOESN'T KNOW HOW MANY THEATERS WILL PLAY SCHINDLER'S LIST AT ITS WIDEST RELEASE HE SAYS THE PLAN IS TO ADD SEVENTY FIVE THEATERS FRIDAY AND PERHAPS BE UP TO FIVE HUNDRED OR SIX HUNDRED THEATERS BY FEBRUARY FOURTH THE BIG DAY FOR SCHINDLER'S LIST WILL BE FEBRUARY NINTH THE DAY ACADEMY AWARD NOMINATIONS ARE ANNOUNCED THE FILM IS EXPECTED TO GARNER MANY NOMINATIONS AND THE STUDIO LIKELY WILL WIDEN ITS RELEASE SOON AFTER BUT UNIVERSAL HAS A MAJOR TECHNICAL CONSTRAINT WHERE STUDIOS USUALLY CAN GET AS MANY AS TWO HUNDRED TO THREE HUNDRED PRINTS OF A FILM MADE IN A SINGLE DAY UNIVERSAL ONLY HAS BEEN ABLE TO GET EIGHT TO TEN PRINTS OF QUOTE SCHINDLER'S LIST QUOTE A DAY THE REASON THE MOVIE WAS SHOT IN BLACK AND WHITE BUT THERE ARE BRIEF SCENES SHOT IN COLOR WHICH MUST BE INSERTED BY HAND INTO EACH PRINT UNIVERSAL A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL COMPANY'S M. C. A. INCORPORATED IS TAKING ANOTHER PICTURE ON A SLOW ROUTE IN THE NAME OF THE FATHER STARRING DANIEL DAY LEWIS AND EMMA THOMPSON THE MOVIE ABOUT A FATHER AND SON WRONGLY CONVICTED OF AN IRISH REPUBLICAN ARMY BOMBING IS PLAYING AT SIXTY SEVEN THEATERS AND HAD THE HIGHEST PER SCREEN AVERAGE OF ANY CURRENT FILM THIS PAST WEEKEND AT TWELVE THOUSAND FIVE HUNDRED DOLLARS THEY DWELL ON HOPES AND AIMS IT'S RETIREMENT AND AGING P. N. C. BANK CORPORATION SAID FREDERICK J. GRONBACHER FIFTY ONE YEARS OLD FORMERLY SENIOR VICE PRESIDENT OF OPERATIONS AND DATA PROCESSING WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT AND DEPUTY MANAGER OF RETAIL BANKING AT THE BANK HOLDING COMPANY IN HIS NEW POST HE WILL BE RESPONSIBLE FOR CONSUMER CREDIT ELECTRONIC BANKING TELEPHONE BANKING SMALL BUSINESS PRIVATE BANKING INTEGRATION OF NEWLY ACQUIRED UNITS AND MASSACHUSETTS COMPANY'S ACTIVITIES HE IS SUCCEEDED BY TIMOTHY G. SHACK FORTY THREE WHO HAS BEEN A SENIOR VICE PRESIDENT OF DATA PROCESSING SINCE NINETEEN NINETY ONE IN ADDITION RICHARD C. GRACE FIFTY TWO FORMERLY VICE PRESIDENT AND MANAGER OF PROGRAM DEVELOPMENT WAS NAMED TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT CORPORATE HUMAN RESOURCES MR. GRACE WILL BE RESPONSIBLE FOR COORDINATING HUMAN RESOURCES ACTIVITIES THROUGHOUT THE COMPANY FOR P. N. C. BANK'S MAJOR BUSINESSES WHICH INCLUDE RETAIL BANKING CORPORATE BANKING INVESTMENT MANAGEMENT AND TRUST SERVICES AND INVESTMENT BANKING ALUMINUM COMPANY MARINA V. N. WHITMAN FIFTY EIGHT YEARS OLD DISTINGUISHED PROFESSOR OF BUSINESS ADMINISTRATION AND PUBLIC POLICY AT THE UNIVERSITY OF MICHIGAN WAS NAMED A DIRECTOR OF THIS ALUMINUM PRODUCER INCREASING THE BOARD'S SIZE TO TEN MOBILE TELECOMMUNICATIONS TECHNOLOGIES CORPORATION IN THE WAKE OF RECENT DISCLOSURES REGARDING POSSIBLE OPERATING LOSSES IN NINETEEN NINETY FOUR SAID FIVE SHAREHOLDER SUITS HAVE BEEN FILED AGAINST THE COMPANY THE COMPLAINTS FILED IN U. S. DISTRICT COURT HERE ALLEGE VIOLATIONS OF FEDERAL SECURITIES LAWS THE PLAINTIFFS ACCORDING TO MOBILE TELECOMMUNICATIONS ARE SEEKING TO HAVE THE PROCEEDINGS CERTIFIED AS CLASS ACTIONS ON JANUARY FIFTH THE TELECOMMUNICATIONS COMPANY SAID IT WILL REDUCE PRICING AT ITS SKYTEL CORPORATION UNIT THE EFFECT OF REDUCED SKYTEL PROFIT TOGETHER WITH START UP LOSSES FROM INTERNATIONAL JOINT VENTURES ARE EXPECTED TO RESULT IN LOSSES FROM OPERATIONS IN NINETEEN NINETY FOUR NEWS OF THE POSSIBLE LOSSES HELPED PUSH DOWN THE COMPANY'S SHARE PRICE TO SIXTEEN DOLLARS AND FIFTY CENTS OFF NINE POINT SIX TWO FIVE DOLLARS ON THE DAY THE PLANS WERE ANNOUNCED IN TRADING ON THE NASDAQ STOCK MARKET FRIDAY MOBILE TELECOMMUNICATIONS CLOSED AT SEVENTEEN POINT EIGHT SEVEN FIVE DOLLARS A SHARE DOWN TWELVE POINT FIVE CENTS FRIDAY IN A STATEMENT THE COMPANY SAID IT BELIEVES IT HAS QUOTE ALWAYS OBSERVED AND ACTED IN ACCORDANCE WITH ALL SECURITIES LAWS AND THAT THESE CLAIMS ARE UNFOUNDED AND WITHOUT MERIT QUOTE THE COMPANY ADDED THAT IT INTENDS TO DEFEND AGAINST THESE LAWSUITS VIGOROUSLY MOBILE TELECOMMUNICATIONS ALSO SAID THAT WHILE IT WAS DISAPPOINTED WITH THE DROP IN ITS STOCK PRICE THE NEW STRATEGY IS DESIGNED TO POSITION THE COMPANY FOR FUTURE GROWTH BROWN FORMAN CORPORATION SAID IT COMPLETED ITS DUTCH AUCTION TENDER OFFER TO PURCHASE CLASS A AND CLASS B. COMMON STOCK BROWN FORMAN SAID IT ACCEPTED FOR PURCHASE ABOUT NINE HUNDRED ELEVEN THOUSAND SHARES OF ITS CLASS A STOCK AT A PRICE OF NINETY DOLLARS A SHARE THE COMPANY SAID THAT A PRELIMINARY COUNT FOR THE TENDER OFFER INDICATED THAT ABOUT NINE HUNDRED THIRTY THOUSAND SHARES OF CLASS A STOCK WERE TENDERED BEFORE THE OFFER'S EXPIRATION JANUARY THIRTEENTH HOLDERS OF ODD LOTS OF SHARES TENDERED TWO THOUSAND SEVEN HUNDRED EIGHTY FIVE SHARES OF CLASS A STOCK ALL OF WHICH WERE ACCEPTED THE PRELIMINARY PRORATION FACTOR FOR ALL OTHER CLASS A SHARES TENDERED IS APPROXIMATELY NINETY EIGHT PERCENT BROWN FORMAN ALSO SAID IT ACCEPTED FOR PURCHASE ABOUT THREE POINT SIX MILLION SHARES OF ITS CLASS B. STOCK AT EIGHTY NINE DOLLARS A SHARE CONSISTING OF ALL CLASS B. SHARES PROPERLY TENDERED AT OR BELOW EIGHTY NINE DOLLARS A SHARE BROWN FORMAN HAD OFFERED TO PURCHASE AS MUCH AS SEVEN HUNDRED THOUSAND SHARES OF ITS CLASS A STOCK AND THREE POINT FIVE MILLION SHARES OF ITS CLASS B. STOCK THE COMPANY SAID IT IS EXERCISING ITS RIGHT TO INCREASE THE NUMBER OF SHARES THE COMPANY'S TOTAL INVESTMENT IN ACQUIRING THE SHARES WILL BE APPROXIMATELY FOUR HUNDRED THREE MILLION DOLLARS AND WILL BE FUNDED FROM AVAILABLE CASH AND SHORT TERM BORROWINGS INDIA'S FOREIGN INVESTMENT PROMOTION BOARD CLEARED THE ACQUISITION BY THE COUNTRY OF A FIVE PERCENT STAKE IN MOTOROLA INCORPORATED'S IRIDIUM PROJECT WHICH PLANS TO CIRCLE THE GLOBE WITH SATELLITES FOR A WORLD WIDE CELLULAR PHONE SYSTEM ONE OR TWO ROUTINE BUREAUCRATIC CLEARANCES REMAIN BEFORE THE INDIAN STAKE IS FULLY APPROVED AS PART OF THE TRANSACTION A CONSORTIUM OF INDIAN PUBLIC SECTOR FINANCIAL INSTITUTIONS LED BY INDUSTRIAL DEVELOPMENT BANK OF INDIA WHICH WILL PUT UP THE FORTY MILLION DOLLARS FOR THE STAKE WILL OBTAIN A SEAT ON THE IRIDIUM BOARD OTHERS IN THE INDIAN CONSORTIUM INCLUDE THE INFRASTRUCTURE LEASING AND FINANCIAL SERVICES AND THE EXPORT IMPORT BANK MOTOROLA ESTABLISHED IRIDIUM INCORPORATED AN INTERNATIONAL GROUP THAT PLANS TO BUILD BY NINETEEN NINETY EIGHT A THREE POINT FOUR BILLION DOLLAR SATELLITE SYSTEM PROVIDING PHONE DATA FAX AND LOCATION SERVICES WORLD WIDE VIA SMALL HAND HELD RECEIVERS MOTOROLA HAS BEEN SELLING OFF EQUITY INTERESTS IN IRIDIUM AND NOW OWNS A MINORITY STAKE IT HAS SAID IT INTENDS TO REDUCE ITS STAKE TO ABOUT FIFTEEN PERCENT INDIA'S PUBLIC SECTOR TRADE UNIONS WORRIED THAT THE COUNTRY'S ECONOMIC REFORM PROGRAM WILL LEAD TO JOB LOSSES AND PRIVATIZATION ARE BEGINNING TO FLEX THEIR MUSCLES BECAUSE THE GOVERNMENT IS FIRMLY COMMITTED TO ITS PROGRAM THE UNIONS AREN'T LIKELY TO DERAIL REFORM BUT THEY HAVE BEEN ABLE TO SLOW IT DOWN AND PROLONGED PROTESTS COULD FURTHER SET BACK LABOR LEGISLATION THAT WOULD GIVE COMPANIES MORE FLEXIBILITY TO SHED WORKERS THE UNIONS PROMISE A LONG STRUGGLE QUOTE WE ARE DETERMINED TO AGITATE QUOTE SAYS R. RAMANATHAN THE BOMBAY BASED GENERAL SECRETARY OF THE AIR CORPORATION EMPLOYEES UNION WORKERS WENT ON SYMBOLIC STRIKES LAST MONTH IN SEVERAL KEY GOVERNMENT OWNED BUSINESSES PROTESTING MOVES TO OPEN THEM UP TO PRIVATE INVESTMENT AND COMPETITION ON DECEMBER THIRTY FIRST MOST OF THE COUNTRY'S FOUR HUNDRED FIFTY THOUSAND TELECOMMUNICATIONS WORKERS STAYED AWAY FROM WORK OBJECTING TO THE PROPOSED ENTRY OF PRIVATE INDIAN AND FOREIGN COMPANIES INTO BASIC TELECOM SERVICES SO FAR A GOVERNMENT PRESERVE MORE THAN HALF THE TWENTY TWO THOUSAND EMPLOYEES OF INDIAN AIRLINES THE STATE OWNED DOMESTIC AIRLINE STAYED AWAY FROM WORK DECEMBER SEVENTEENTH THEY WERE PROTESTING A GOVERNMENT PLAN TO REPEAL THE FORTY ONE YEAR OLD STATE MONOPOLY ON DOMESTIC FLIGHTS A MONOPOLY THAT ALREADY HAS BEEN BREACHED IN RECENT YEARS AS PRIVATE CARRIERS HAVE EXPLOITED A LEGAL LOOPHOLE TO GRAB A FIFTH OF THE MARKET POSTAL SERVICES WERE DISRUPTED FOR FOUR DAYS IN EARLY DECEMBER AS THE DEPARTMENT'S SIX HUNDRED THOUSAND WORKERS STRUCK FOR HIGHER WAGES AND PROTESTED MOVES TO SHIFT SOME PERIPHERAL SERVICES SUCH AS BULK MAIL TO THE PRIVATE SECTOR FEARFUL OF A LABOR BACKLASH SUPPORTED BY OPPOSITION PARTIES THE GOVERNMENT OF PRIME MINISTER P. V. NARASIMHA RAO HAS IN RECENT MONTHS SLOWED DOWN ON SOME OF THE MORE CONTROVERSIAL ASPECTS OF LIBERALIZATION LEGISLATION TO AMEND LABOR LAWS AND PERMIT EASIER CLOSURE OF FACTORIES AND BUSINESSES WAS PROMISED IN NINETEEN NINETY THREE BUT THE RAO GOVERNMENT WAS WEAKENED BY THE COMMUNAL VIOLENCE AND POLITICAL TURMOIL THAT FOLLOWED THE DESTRUCTION OF A MOSQUE IN AYODHYA IN DECEMBER NINETEEN NINETY TWO AND HAS YET TO INTRODUCE THE LEGISLATION IN PARLIAMENT MEANWHILE THE GOVERNMENT HAS PUT ON HOLD AN AMBITIOUS PROPOSAL FROM U. S. WEST INCORPORATED TO SET UP A TELECOM NETWORK IN AN INDUSTRIAL AREA OF THE SOUTHERN STATE OF TAMIL NADU IN COMPETITION WITH THE STATE OWNED NETWORK ALSO DELAYED ARE DECISIONS ON SEVERAL SIMILAR TELECOM PROPOSALS AIMED AT OTHER REGIONS FOR MORE THAN A YEAR POLITICAL UNCERTAINTY HELD UP LEGISLATION THAT WOULD REPEAL A BAN ON PRIVATE SECTOR AIRLINES AT PRESENT SOME PRIVATE CARRIERS SKIRT THE BAN BY OPERATING AS AIR TAXIS MAKING REGULAR FLIGHTS BUT REFRAINING FROM PUBLISHING SCHEDULES THE LEGISLATION WAS FINALLY BROUGHT TO PARLIAMENT LAST MONTH AND IS DUE TO BE DISCUSSED IN THE SESSION STARTING IN FEBRUARY THE ONLY GENUINE PRIVATIZATION BEING CONSIDERED BY THE RAO ADMINISTRATION THE SALE OF A DILAPIDATED STEEL PLANT TO MUKAND LIMITED HAS BEEN REFERRED TO A MULTIPARTY PARLIAMENTARY COMMITTEE THE COMMITTEE IS EXPECTED TO ENDORSE THE PROPOSAL UNION SPOKESMEN ARGUE THAT THE REFORMS EVENTUALLY WILL LEAD TO BROAD PRIVATIZATION WHICH THEY OPPOSE ON IDEOLOGICAL GROUNDS THE GOVERNMENT IS HANDING IT OVER TO THE PRIVATE SECTOR SAYS M. K. PANDHE GENERAL SECRETARY OF THE CENTRE OF INDIAN TRADE UNIONS A MARXIST ORGANIZATION THE SOLUTION LIES IN CHANGING THE PUBLIC SECTOR NOT DISMANTLING THE PUBLIC SECTOR THE GOVERNMENT'S STATED POLICIES HOWEVER FALL WELL SHORT OF FULL PRIVATIZATION WITH RARE EXCEPTIONS GOVERNMENT PLANS ARE LIMITED TO SELLING AS MUCH AS FORTY NINE PERCENT OF THE EQUITY OF CERTAIN STATE OWNED FIRMS TO FINANCIAL INSTITUTIONS AND INDIVIDUAL INVESTORS THE GOVERNMENT ARGUES THAT SUCH SALES WOULD PUT PRESSURE ON PUBLIC SECTOR MANAGEMENTS TO BE MORE EFFICIENT WHILE RETAINING GOVERNMENT CONTROL THE UNIONS SUPPORTED MAINLY BY SOCIALIST AND COMMUNIST LAWMAKERS AREN'T BUYING THAT THEY'RE MAKING A STAND AGAINST PLANS TO CONVERT GOVERNMENT TELECOM DEPARTMENTS INTO CORPORATIONS THE GOVERNMENT WANTS TO CREATE COMPANIES THAT COULD FINANCE BETTER TELECOM NETWORKS THROUGH SALES OF EQUITY AS VIDESH SANCHAR NIGAM LIMITED INDIA'S OVERSEAS TELECOM CONCERN IS PLANNING TO DO EARLY THIS YEAR WITH AN OFFERING OF GLOBAL DEPOSITARY RECEIPTS A TYPE OF SHARE GEARED FOR FOREIGNERS IF FOREIGN INVESTMENT COMES INTO THESE SHARES IT WON'T BE IN INDIA'S INTEREST BECAUSE THE FOREIGNERS WILL COME TO DOMINATE ARGUES BRIJESH UPADHYAYA A GENERAL SECRETARY OF THE BHARATIYA TELECOM EMPLOYEES FEDERATION A TRADE UNION RELATED TO THE OPPOSITION BHARATIYA JANATA PARTY WE'LL DEFINITELY OPPOSE THIS TO THE LAST EXTENT FOR THE SAME REASON UNIONS HAVE DENOUNCED RECOMMENDATIONS BY A GOVERNMENT APPOINTED COMMITTEE OF EXPERTS THAT HALF OF THE EQUITY OF STATE OWNED LIFE INSURANCE CORPORATION BE SOLD AND THAT PRIVATE INDIAN AND FOREIGN COMPANIES BE ALLOWED INTO THE INSURANCE BUSINESS THE MAJOR UNIONS WHICH ARE AFFILIATED WITH POLITICAL PARTIES AND THUS HAVE CONSIDERABLE CLOUT ALSO FEAR THAT COMPETITION WITH PRIVATE COMPANIES WILL MEAN A LOSS OF JOBS THE GOVERNMENT REPLIES THAT RATHER THAN FIRING WORKERS IT WILL RETRAIN THEM LONG BEFORE INVESCO FUNDS GROUP FIRED STAR MANAGER JOHN KAWESKE FOR ALLEGEDLY FAILING TO REPORT PERSONAL STOCK TRADES HE WAS REAPING PERSONAL REWARDS FROM A COMPANY IN WHICH HIS FUNDS LATER INVESTED REGULATORY FILINGS SHOW HE GOT IN ON THE GROUND FLOOR OF TINY I. D. BIOMEDICAL CORPORATION OF VANCOUVER BRITISH COLUMBIA JOINING ITS BOARD AND BUYING CHEAP PRIVATE STOCK FOR HIMSELF A YEAR BEFORE THIS HIGHFLIER WENT PUBLIC AND EVENTUALLY WOUND UP IN INVESCO MUTUAL FUNDS AND IN ANOTHER SIGN OF THE OVERLAP THAT OFTEN DEVELOPS BETWEEN FUND MANAGERS AND COMPANIES HELD IN THEIR FUNDS HIS SON WORKED FOR A TIME AT IVAX CORPORATION A MIAMI PHARMACEUTICAL COMPANY WHOSE SHARES ARE STILL IN INVESCO MUTUAL FUNDS THE I. D. BIOMEDICAL CASE SHOWS HOW CLOSE TIES BETWEEN A FUND MANAGER AND A COMPANY IN THE MANAGER'S REALM OF EXPERTISE CAN BRING PERSONAL QUOTE PERKS QUOTE THAT A SMALL INVESTOR WOULDN'T GET AND IT ILLUMINATES THE QUESTION HAUNTING THE FUND INDUSTRY NOW ARE THE BENEFITS TO MANAGERS OF PERSONAL DEALINGS OUTWEIGHED BY POTENTIAL CONFLICT OF INTEREST PROBLEMS I. D. BIOMEDICAL DID ULTIMATELY PROVE PROFITABLE FOR INVESCO FUNDS AND IT'S NOT ILLEGAL FOR FUND MANAGERS TO TRADE FOR THEMSELVES OR SIT ON CORPORATE BOARDS BUT IT IS ILLEGAL FOR THEM TO ACCEPT PERSONAL COMPENSATION IN RETURN FOR MAKING A FUND BUY A PARTICULAR STOCK THE S. E. C. AS REPORTED LAST WEEK IS SCRUTINIZING MR. KAWESKE'S DEALINGS TO SEE IF HE VIOLATED FEDERAL SECURITIES LAWS MR. KAWESKE HAS LONG SPECIALIZED IN HEALTH AND BIOTECHNOLOGY COMPANIES AND HIS SON HAS WORKED IN THE FIELD JOHN KAWESKE JUNIOR TWENTY FOUR YEARS OLD WAS EMPLOYED BY IVAX FROM JANUARY NINETEEN NINETY TO NOVEMBER NINETEEN NINETY TWO HOLDING A JUNIOR POSITION AT THE COMPANY DURING A PERIOD WHEN INVESCO FUNDS HELD A CHUNK OF THE STOCK ACCORDING TO REGULATORY FILINGS THE SON MOVED ON FROM THERE TO BE A VICE PRESIDENT OF INVESTMENTS FOR NEW YORK'S D. BLECH AND COMPANY WHERE CHAIRMAN DAVID BLECH IS A STOCK PROMOTER SPECIALIZING IN BIOTECH STOCKS SEVERAL OF WHICH WOUND UP IN INVESCO PORTFOLIOS THE ELDER MR. KAWESKE PREVIOUSLY SUGGESTED THAT INVESCO MAY HAVE FIRED HIM BECAUSE IT SUSPECTED HE WAS ABOUT TO QUIT OVER THE WEEKEND THE FIRED MANAGER'S LAWYER ANDREW LEVANDER SAID MR. KAWESKE COULDN'T BE REACHED TO COMMENT BECAUSE HE HAD GONE AWAY TO GET SOME REST DENVER BASED INVESCO HAS DISTANCED ITSELF FROM MR. KAWESKE WHO MANAGED FOUR POINT SIX BILLION DOLLARS OF ASSETS NEARLY HALF OF THE TEN BILLION DOLLARS INVESCO MANAGES ITS PARENT IS INVESCO P. L. C. OF THE UNITED KINGDOM INVESCO ASSERTS IT DIDN'T EVEN KNOW MR. KAWESKE WAS A DIRECTOR OF I. D. BIOMEDICAL JOHN ZESCHIN INVESCO EXECUTIVE VICE PRESIDENT SAID IN AN INTERVIEW FRIDAY THAT MR. KAWESKE FAILED TO REPORT THAT HE IS A DIRECTOR OF A PUBLIC COMPANY AS REQUIRED BY INVESCO'S CODE OF CONDUCT MR. LEVANDER DIFFERS HE SAID ONE OR MORE PERSONS AT INVESCO KNEW OF THE MANAGER'S POSITION AT I. D. BIOMEDICAL I. D. BIOMEDICAL SAID INVESCO FUND MANAGER BARRY KUROKAWA DID SOME WORK SCRUTINIZING ITS I. D. VACCINE CORPORATION SUBSIDIARY BEFORE THAT SUBSIDIARY RAISED MONEY IN A JUNE NINETEEN NINETY THREE PRIVATE PLACEMENT THE KAWESKE MANAGED GLOBAL HEALTH SCIENCES FUND INVESTED IN THAT OFFERING BARRY DID THE DUE DILIGENCE ON THE VACCINE SAID DAVID HALL I. D. BIOMEDICAL'S MANAGER OF CORPORATE DEVELOPMENT HE ADDED THAT THE DUE DILIGENCE WORK WAS ABOUT THE SCIENCE AND TECHNOLOGY NOT ABOUT MR. KAWESKE'S PERSONAL POSITION MR. KUROKAWA DIDN'T RETURN PHONE CALLS LAST WEEK HE ASSUMED EXPANDED RESPONSIBILITY FOR THE GLOBAL HEALTH SCIENCES FUND AND TOOK ON OTHER DUTIES IN THE WAKE OF MR. KAWESKE'S FIRING MR. KAWESKE'S CONNECTION TO THE CANADIAN COMPANY AROSE AFTER HE HEARD ABOUT A PROBE BASED TEST TO DIAGNOSE TUBERCULOSIS THAT IS BEING DEVELOPED BY SCIENTISTS AT THE UNIVERSITY OF BRITISH COLUMBIA IN VANCOUVER MR. HALL SAID HE WAS INTERESTED IN THE PROBE FOR BUSINESS REASONS AND WE WERE ALSO INTERESTED THAT'S HOW WE MET THROUGH MUTUAL INTERESTS QUOTE MR. KAWESKE BECAME A DIRECTOR OF I. D. BIOMEDICAL IN MARCH NINETEEN NINETY ONE AND IN JUNE OF THAT YEAR BOUGHT TWENTY THOUSAND SHARES FOR HIMSELF AT FIFTY CANADIAN CENTS EACH ACCORDING TO FILINGS WITH THE BRITISH COLUMBIA SECURITIES COMMISSION THE FILINGS WERE NOTED IN CANADA STOCKWATCH AN INDUSTRY NEWSLETTER BASED IN VANCOUVER LESS THAN A YEAR LATER MR. KAWESKE'S TEN THOUSAND CANADIAN DOLLARS SEVEN THOUSAND FIVE HUNDRED SIXTY FOUR U. S. DOLLARS INITIAL INVESTMENT BLOSSOMED WHEN THE COMPANY WENT PUBLIC IN MARCH NINETEEN NINETY TWO AT TWO CANADIAN DOLLARS AND FIFTY CENTS A SHARE ONE U. S. DOLLAR AND EIGHTY NINE CENTS ABOUT SIX MONTHS AFTER THAT MR. KAWESKE POCKETED HIS FIRST GAIN ON HIS I. D. BIOMEDICAL POSITION SELLING TEN THOUSAND SHARES IN TWO SEPARATE TRADES AT ABOUT ONE DOLLAR AND SEVENTY CENTS A SHARE THE STOCK WENT ON TO SOAR GETTING AS HIGH AS THIRTY ONE CANADIAN DOLLARS IN NOVEMBER NINETEEN NINETY THREE AND EMERGING AS ONE OF THE HOTTEST STOCKS ON THE VANCOUVER EXCHANGE ALTHOUGH SEVERAL MAJOR INVESTORS IN THE VANCOUVER STOCKBROKER COMMUNITY SAY I. D. BIOMEDICAL IS A HIGH TECH COMPANY POISED FOR GROWTH THEY DOUBT THAT A STILL UNPROFITABLE FLEDGLING COMPANY WOULD HAVE BEEN AS SUCCESSFUL WITHOUT MR. KAWESKE THERE ARE SOME VERY REAL COMPANIES ON THE VSE AND I. D. BIOMED IS A CASE IN POINT RICHARD GROOME MANAGING DIRECTOR OF THE VANCOUVER OFFICE OF MARLEAU LEMIRE SECURITIES INCORPORATED SAID IN AN INTERVIEW LAST YEAR YOU JUST HAVE TO LOOK AT I. D. BIOMEDICAL'S CLOSE TIES TO INVESCO AND JOHN KAWESKE A VERY RESPECTED DENVER FUND MANAGER AND INVESTOR I. D. BIOMEDICAL'S MR. HALL SAID THAT ALTHOUGH MR. KAWESKE HAS CONTRIBUTED GREATLY TO THE COMPANY AS A DIRECTOR ANY SUGGESTION THAT THE STOCK HAS BEEN MOVED BY PROMOTION OF JOHN KAWESKE IS ABSURD THE STOCK DROPPED TWO CANADIAN DOLLARS IN CANADA LAST WEEK TO CLOSE AT SEVENTEEN CANADIAN DOLLARS I. D. BIOMEDICAL STARTED TRADING SIX MONTHS AGO ON THE NASDAQ STOCK MARKET AT ABOUT FOUR U. S. DOLLARS IT ENDED AT TWELVE DOLLARS AND SEVENTY FIVE CENTS FRIDAY IN SEPTEMBER AMID WILD SWINGS IN I. D. BIOMEDICAL'S STOCK PRICE MR. KAWESKE EXERCISED OPTIONS BUYING THIRTY FIVE THOUSAND SHARES AT TWO DOLLARS AND FIFTY CENTS APIECE WHEN THE STOCK WAS AT ABOUT TWENTY FOUR CANADIAN DOLLARS HIS LAWYER SAYS OTHER COMPANY INSIDERS WERE ALSO EXERCISING OPTIONS THEN AT THAT TIME MR. KAWESKE GOT OPTIONS TO BUY THIRTY FIVE THOUSAND MORE SHARES AT TWENTY CANADIAN DOLLARS AND FIFTEEN CENTS EACH ON SEPTEMBER THIRTIETH MR. KAWESKE SOLD FIVE THOUSAND SHARES TO HIS WIFE PAM AT TWENTY SIX CANADIAN DOLLARS EACH CANADIAN FILINGS SHOW THIS SALE WAS CONSIDERED A GIFT TRANSFER FOR ESTATE PLANNING PURPOSES ACCORDING TO MR. LEVANDER WHO SAID NONE OF THE TRADES INVOLVE ANY IMPROPRIETIES MR. KAWESKE ACQUIRED HIS STOCK YEARS BEFORE ANY FUND BOUGHT STOCKI DON'T BELIEVE HE HAS COMMITTED ANY WRONGDOING THE LAWYER ADDED CURRENTLY MR. KAWESKE HOLDS ONE HUNDRED TWENTY THREE THOUSAND THREE HUNDRED THIRTY THREE SHARES I. D. BIOMEDICAL SAID MEANWHILE MR. KAWESKE WAS ALSO BUYING THE STOCK AND MAKING A PROFIT FOR THE FUNDS HE MANAGED ACCORDING TO S. E. C. FILINGS ADMAX GLOBAL HEALTH SCIENCE FUND MANAGED BY INVESCO UNDER CONTRACT AND DISTRIBUTED IN CANADA BOUGHT TWENTY FIVE THOUSAND SHARES OF I. D. BIOMEDICAL BETWEEN NOVEMBER NINETEEN NINETY TWO AND AUGUST NINETEEN NINETY THREE AT FIVE DOLLARS AND FIFTY CENTS TO SEVEN POINT EIGHT SEVEN FIVE DOLLARS IT SOLD TEN THOUSAND SHARES IN LATE NOVEMBER AT ABOUT TWO AND ONE HALF TIMES THAT AMOUNT KEEPING THE REST ALSO FILINGS SHOW INVESCO'S HEALTH SCIENCES JAPAN FUND BOUGHT FIFTY THOUSAND SHARES AT SEVEN DOLLARS AND FIFTY FIVE CENTS EACH AUGUST TWENTIETH SELLING SOME AT A PROFIT CLOSE TO YEAR END AND RETAINING ABOUT FIFTEEN THOUSAND SHARES MR. KAWESKE'S OTHER LINKS INCLUDE CALIFORNIA STOCK PROMOTER RAFI KHAN FUNDS MANAGED BY MR. KAWESKE WERE BUYERS OF A NUMBER OF STOCKS PROMOTED BY MR. KHAN WITH WHOM INVESCO HAS SAID IT SEVERED TIES SEVERAL MONTHS AGO MR. KAWESKE INVESTED PERSONALLY IN CARDIAC SCIENCE INCORPORATED WHICH MR. KHAN WAS PUSHING BEFORE IT WENT PUBLIC BUT THAT STOCK UNLIKE I. D. BIOMEDICAL ISN'T IN INVESCO FUNDS ACCORDING TO RECENT THIRTEEN F. FILINGS WITH THE S. E. C. LOW MORTGAGE RATES SPARKED A WAVE OF NEW HOME CONSTRUCTION LAST YEAR BUT IT WILL TAKE MORE THAN THAT TO KEEP THE INDUSTRY GROWING IN NINETEEN NINETY FOUR HOUSING STARTS GREW STEADILY IN NINETEEN NINETY THREE REACHING AN ANNUAL RATE OF ONE MILLION FOUR HUNDRED THIRTY TWO THOUSAND UNITS IN NOVEMBER THAT WAS THE HIGHEST LEVEL SINCE BEFORE THE NINETEEN NINETY TO NINETY ONE RECESSION MUCH OF THE BOOM WAS ATTRIBUTED TO MORTGAGE RATES WHICH FELL TO TWENTY FIVE YEAR LOWS LAST FALL A COMMERCE DEPARTMENT REPORT THIS WEEK WILL PROBABLY SHOW A SLIGHT INCREASE IN DECEMBER HOUSING STARTS TO A ONE MILLION FOUR HUNDRED FIFTY THOUSAND UNIT RATE SAID ROBERT BRUSCA ECONOMIST AT NIKKO SECURITIES ATTRACTIVE MORTGAGE RATES ARE STILL DRAWING PROSPECTIVE HOME BUYERS INTO THE MARKET BUT THAT PHENOMENON HAS JUST ABOUT RUN ITS COURSE HE SAID MR. BRUSCA SAID THE EFFECT OF VERY LOW INTEREST RATES IS BEGINNING TO WEAR OFF QUOTE NOW WE'RE GOING TO HAVE TO DO IT WITH THE ECONOMY WITH MORE JOBS AND BETTER INCOME GROWTH QUOTE HE SAID AND THE ECONOMY WHICH HAS BEEN GROWING SLOWLY BUT STEADILY SHOULD PROVIDE SOME HELP MR. BRUSCA SAID HE EXPECTS HOUSING STARTS IN NINETEEN NINETY FOUR TO IMPROVE SLIGHTLY TO ONE MILLION FIVE HUNDRED THOUSAND UNITS ADDITIONALLY THE FACT THAT BUILDING PERMITS CONTINUE TO BE ISSUED AT A HIGH RATE BODES WELL FOR FUTURE CONSTRUCTION ACTIVITY HE SAID SECRECY AND DECEPTION GAVE THE FORMER SOVIET UNION AN UNDOUBTED EDGE DURING ITS PROTRACTED STRUGGLE WITH THE REST OF THE WORLD NOBODY IS YET SURE HOW DEEPLY THE VARIOUS SPY RINGS PENETRATED NOR THE EXTENT TO WHICH EACH COUNTRY'S COMMUNIST PARTY WAS AN INSTRUMENT OF SABOTAGE AND TREASON IN QUOTE DOUBLE LIVES QUOTE FREE PRESS FOUR HUNDRED NINETEEN PAGES TWENTY FOUR DOLLARS AND NINETY FIVE CENTS STEPHEN KOCH TREATS THE PARTICULAR CAREER OF WILLI MUNZENBERG AS A GENERAL ILLUMINATION OF SOVIET DECEPTION RISING FROM A HUMBLE GERMAN BACKGROUND MUNZENBERG BECAME THE FOREMOST OPERATOR OF THE COMINTERN STALIN'S AGENCY FOR SUBVERSION ABROAD MUNZENBERG HAS BEEN WRITTEN UP SEVERAL TIMES BUT MR. KOCH WAS ABLE TO CHECK THESE ACCOUNTS AND MUCH ACCOMPANYING RUMOR WITH MUNZENBERG'S WIDOW BABETTE DEUTSCH A FORMIDABLE WITNESS OF THE TIMES WHO HAS SINCE DIED THE RESULT IS A LIVELY READABLE BOOK ONCE HITLER TOOK POWER MUNZENBERG MOVED TO PARIS WHERE HE GATHERED ROUND HIM WHAT MR. KOCH CALLS MUNZENBERGMEN HIS PRINCIPAL LIEUTENANT WAS CZECHBORN OTTO KATZ HALF PLAYBOY AND HALF MONSTER AND WELL CAST FOR THE ROLE BETWEEN THEM MUNZENBERG AND KATZ MANAGED TO CROSS THE PATHS OF AN IMMENSE RANGE OF THE CELEBRITIES ROGUES AND WILLING DUPES WHO MADE UP PUBLIC OPINION THEY WERE THE RECRUITING OFFICERS OF THE ARMY OF FELLOW TRAVELERS WHO TURNED THE SOVIET UNION INTO THE MOST FASHIONABLE OF CAUSES BETWEEN THE WARS MUNZENBERG SHREWDLY PERCEIVED THAT IF THE SOVIET UNION WAS TO BE WIDELY ADMIRED THE TERROR OF ITS SYSTEM HAD TO BE MADE INVISIBLE THE BEST MEANS FOR ACHIEVING THIS LAY IN CONCENTRATING ON THE MISTAKES AND FAILINGS OF COMMUNISM'S ENEMIES IN THE FIRST INSTANCE NAZISM AND THEN CAPITALISM OR AMERICA WHERE HITLER WAS CONCERNED IT WAS EASY FOR MUNZENBERG OR ANYONE ELSE TO CLAIM THE HIGH MORAL GROUND THE TRIAL OF COMINTERN LEADER DIMITROV ON THE PHONY CHARGE OF SETTING FIRE TO THE GERMAN REICHSTAG THE WHOLE COURSE OF THE SPANISH CIVIL WAR THE POPULAR FRONT THE PERSECUTION OF JEWS THESE WERE FOR MUNZENBERG OPPORTUNITIES TO CONTRIVE COMMUNIST VIRTUE OUT OF NAZI VICE MR. KOCH DESCRIBES HOW THE LIKES OF MALRAUX HEMINGWAY SINCLAIR LEWIS AND PICASSO SO BADLY WANTED TO BELIEVE THIS SIMPLE SCHEME THAT MUNZENBERG HARDLY HAD TO DO MORE THAN TELEPHONE THEM IT IS MR. KOCH'S CONTENTION THAT MUNZENBERG'S TENTACLES SPREAD THROUGH BLOOMSBURY AND INTO PHILBY'S CAMBRIDGE CORRUPTING INTELLECTUALS EVERYWHERE REACHING INTO THE WASHINGTON OF NOEL FIELD AND ALGER HISS EVEN CATCHING HOLD OF HOLLYWOOD CERTAINLY MUNZENBERG PROVED AN IMPRESARIO OF GENIUS OUT OF HIS IMAGINATION POURED THE SETUPS AND PROCEDURES NOW TAKEN FOR GRANTED IN MANIPULATING OPINION FRONT ORGANIZATIONS CULTURAL CONGRESSES PUBLICATIONS SPONSORED TO SPREAD SLANTED NEWS PEACE RALLIES ORGANIZED LETTERS IN THE PRESS BY PRESTIGIOUS ARTISTS AND WRITERS NOBODY KNEW BETTER HOW TO AROUSE INDIGNATION AND NOBODY KNEW BETTER HOW TO CONCEAL THE ENDS TO WHICH THAT INDIGNATION WAS TO BE PUT THE ESSENTIAL TRICK WAS NEVER TO DEFINE THE POINT AT WHICH INDIGNATION HAD SLIPPED INTO FELLOW TRAVELING ONCE PEOPLE WERE PERSUADED THAT FELLOW TRAVELING WAS MORALLY JUSTIFIED THEN THEY HAD ALREADY BECOME THE HUMAN MATERIAL OUT OF WHICH DOWNRIGHT TRAITORS AND SPIES COULD BE SHAPED IF MR. KOCH IS RIGHT WHAT LOOKED LIKE SEPARATE RINGS OF AGENTS IN THE DEMOCRACIES WERE REALLY UNDER CENTRAL CONTROL IN ORWELLIAN FASHION BIG BROTHER STALIN WAS DICTATING POLICY AND MANIPULATION ALIKE ONCE STALIN HAD ABSOLUTE CONTROL AT HOME HITLER WAS THE ONLY MAN IN THE WORLD WHO COULD STILL THREATEN HIM BEHIND THE DIMITROV TRIAL MR. KOCH ARGUES CAN BE DETECTED THE EARLY ELEMENTS OF THE COLLABORATION WITH HITLER IN WHICH STALIN THOUGHT HIS SAFETY LAY LIKEWISE STALIN TOOK AN INTEREST IN SPAIN ONLY TO ACQUIRE SOMETHING HE COULD TRADE OFF WITH HITLER THE POPULAR FRONT AND THE MUNZENBERG MEN WERE USEFUL COVERS FOR THE PURGES AND GREAT TERROR OF NINETEEN THIRTY SEVEN BUT POLICIES SO DECEPTIVE AND TERRORISTIC WERE BOUND TO RENDER EXPENDABLE THOSE WHO CARRIED THEM OUT WHEN MUNZENBERG WAS FOUND MYSTERIOUSLY DEAD IN NINETEEN FORTY APPARENTLY AS HE TRIED TO ESCAPE ACROSS FRANCE FROM THE INVADING GERMANS SOME THOUGHT THE SOVIETS HAD LIQUIDATED HIM FOR HITLER'S SAKE STALIN MAY HAVE DECIDED TO BETRAY HIS OWN GREAT ENGINE OF TREASON MR. KOCH'S DETAILED ACCOUNT OF MUNZENBERG'S LAST DAYS MAKES THE ASSUMPTION OF SOVIET MURDER A VIRTUAL CERTAINTY AS FOR OTTO KATZ HE WAS DEPORTED FROM THE U. S. IN NINETEEN FORTY ONCE THE COMMUNISTS STAGED THEIR COUP IN CZECHOSLOVAKIA IN NINETEEN FORTY EIGHT HE RETURNED HOME AND CAME INTO HIS OWN BUT ANOTHER CHANGE OF STALIN'S LINE BROUGHT SHOW TRIALS ARRESTED KATZ CONFESSED THAT ALL ALONG HE HAD BEEN A WESTERN AGENT AND HE WAS HANGED THE SOVIET WORLD IS NO MORE BUT IT IS STILL A CHALLENGE TO COMPREHEND THE TWISTS AND TURNS OF ITS DEFILEMENTS INCLUDING LIVES LIKE THESE MR. PRYCE JONES IS AUTHOR OF THE CLOSED CIRCLE AN INTERPRETATION OF THE ARABS A JURY AWARDED DAMAGES OF TEN POINT SEVEN MILLION DOLLARS AGAINST OWENS CORNING FIBERGLAS CORPORATION AFTER FINDING THAT ASBESTOS PIPE INSULATION IT ONCE MANUFACTURED CAUSED CANCER IN A DECEASED SHIP RIGGER THE TOLEDO OHIO COMPANY IS RESPONSIBLE FOR FOUR POINT TWO MILLION DOLLARS IN COMPENSATORY DAMAGES AND SIX POINT FIVE MILLION DOLLARS IN PUNITIVE DAMAGES ACCORDING TO THE VERDICT OF A JURY IN NEW YORK SUPREME COURT THE JURY IN THE CASE AWARDED A TOTAL OF TWELVE POINT SIX MILLION DOLLARS TO THE ESTATE OF JOHN SCANLON WITH OTHER PARTIES RESPONSIBLE FOR THE ADDITIONAL ONE POINT NINE MILLION DOLLARS MR. SCANLON WHO FITTED SHIPS WITH PIPES FROM NINETEEN FIFTY TWO TO NINETEEN FIFTY NINE AT THE BROOKLYN NAVY YARD DIED IN NINETEEN NINETY THREE TWO YEARS AFTER BEING DIAGNOSED WITH MESOTHELIOMA A CANCER OF THE LINING OF THE LUNG SAID RICHARD NEMEROFF ONE OF THE ESTATE'S ATTORNEYS AN OWENS CORNING SPOKESMAN SAID THE COMPANY WILL APPEAL THE DECISION OWENS CORNING MADE THE ASBESTOS PIPE INSULATION KAYLO FROM NINETEEN FIFTY EIGHT TO NINETEEN SEVENTY TWO HE SAID RUBBERMAID INCORPORATED WOOSTER OHIO SAID IT INTENDS TO FORM A JOINT VENTURE WITH JAPAN'S RICHELL CORPORATION TO SELL MARKET AND DEVELOP HOUSEWARES LEISURE AND SPECIALTY PRODUCTS FOR THE JAPANESE MARKET THE VENTURE IS SCHEDULED TO BEGIN OPERATIONS IN APRIL RUBBERMAID WILL HOLD A FORTY PERCENT EQUITY INTEREST AND WILL HAVE THE OPPORTUNITY TO INCREASE ITS HOLDING TO A MAJORITY POSITION BY THE END OF THE YEAR RUBBERMAID MAKES AND MARKETS PLASTIC AND RUBBER PRODUCTS INCLUDING KITCHENWARE LAUNDRY AND BATH ACCESSORIES MICROWAVE OVENWARE OFFICE PRODUCTS AND CHILDREN'S TOYS RICHELL MAKES HOME AND LEISURE PRODUCTS THE SUPREME COURT AGREED TO CONSIDER AGAIN DEMANDS FOR CONSTITUTIONAL LIMITS ON PUNITIVE DAMAGE AWARDS IN CIVIL LAWSUITS THE JUSTICES SAID FRIDAY THEY WOULD HEAR AN APPEAL BY HONDA MOTOR COMPANY OF A FIVE MILLION DOLLAR PUNITIVE AWARD THAT AN OREGON JURY HANDED A PLAINTIFF WHO WAS BADLY INJURED WHEN HIS THREE WHEEL ALL TERRAIN VEHICLE OVERTURNED THE JAPANESE CAR MAKER STRESSED IN ITS APPEAL THAT OREGON APPARENTLY ALONE AMONG THE STATES BARS ANY OVERSIGHT BY TRIAL AND APPELLATE JUDGES OF PUNITIVE OR COMPENSATORY DAMAGE AWARDS FEW LEGAL ISSUES SPARK GREATER INDIGNATION IN BUSINESS AND INSURANCE CIRCLES THAN LARGE PUNITIVE DAMAGE AWARDS WHICH ARE DESIGNED TO PUNISH DEFENDANTS AND DETER FUTURE WRONGDOING COMPENSATORY AWARDS REPAY PLAINTIFFS FOR THEIR LOSSES CONSUMER ADVOCATES DEFEND LARGE PUNITIVE AWARDS AS NECESSARY TO DISCIPLINE CORPORATIONS DOCTORS AND OTHER DEFENDANTS THEY ALSO ARGUE THAT PUNITIVE AWARDS PROVIDE AN INCENTIVE FOR PLAINTIFFS' LAWYERS TO FILE LEGITIMATE SUITS THAT ARE EXPENSIVE TO PURSUE IN A SERIES OF CASES IN RECENT YEARS THE SUPREME COURT HAS REJECTED APPEALS BY BUSINESS INTERESTS FOR DISTINCT CONSTITUTIONAL GUIDELINES THAT WOULD CURB PUNITIVE DAMAGES THE HIGH COURT HAS SEEMED TO ASSUME THOUGH THAT WHEN SUCH AWARDS ARE CHALLENGED AS EXCESSIVE THEY OUGHT BE REVIEWED BY TRIAL AND APPELLATE JUDGES THE OREGON SUPREME COURT IN CONTRAST HAS INTERPRETED THE STATE'S CONSTITUTION AS PROHIBITING JUDGES FROM SECOND GUESSING THE AMOUNT OF COMPENSATORY OR PUNITIVE DAMAGES AWARDED BY JURIES IN THE CASE THE JUSTICES AGREED TO HEAR THE JURY FOUND THAT THE HONDA VEHICLE WAS UNSAFE AND AWARDED THE PLAINTIFF NINETEEN THOUSAND THREE HUNDRED NINETY DOLLARS FOR MEDICAL EXPENSES AND NINE HUNDRED THOUSAND DOLLARS FOR QUOTE PAIN AND SUFFERING QUOTE IN ADDITION TO THE FIVE MILLION DOLLARS IN PUNITIVE DAMAGES THE COMPENSATORY PART WAS REDUCED BY ONE HUNDRED EIGHTY FOUR THOUSAND DOLLARS BE CAUSE THE JURY HAD FOUND THE PLAINTIFF TWENTY PERCENT AT FAULT FOR THE ACCIDENT WHICH OCCURRED WHEN HE TRIED TO RIDE UP A STEEP EMBANKMENT FOLLOWING STATE JUDICIAL PRECEDENTS THE TRIAL JUDGE REFUSED TO CONSIDER WHETHER THE PUNITIVE DAMAGE AWARD WAS EXCESSIVE THE OREGON SUPREME COURT AFFIRMED THE TRIAL RESULTS IT REJECTED HONDA'S ARGUMENT THAT U. S. SUPREME COURT DECISIONS LAST YEAR AND IN NINETEEN NINETY ONE SAID AT LEAST SOME JUDICIAL REVIEW OF PUNITIVE AWARDS IS NEEDED TO MEET THE U. S. CONSTITUTION'S GUARANTEE OF DUE PROCESS ALL THAT IS NEEDED TO FULFILL THE DUE PROCESS REQUIRE MENT THE STATE'S TOP COURT SAID WAS JUDICIAL REVIEW OF THE INSTRUCTIONS GIVEN TO THE JURY AND OF WHETHER THE EVIDENCE WAS SUFFICIENT TO JUSTIFY ANY PUNITIVE DAMAGES AT ALL THE DRUIDS MUST HAVE PUT A CURSE ON THE SEATTLE OPERA'S NEW PRODUCTION OF BELLINI'S QUOTE NORMA QUOTE FIRST SOPRANO CAROL VANESS THE SHOW'S STAR AND REASON FOR BEING HURT HER BACK AND PULLED OUT OF THE PRODUCTION A FEW DAYS INTO REHEARSALS A FRANTIC SEARCH AROUND THE OPERA GLOBE PRODUCED A REPLACEMENT ENGLISH SOPRANO JANE EAGLEN SHE ARRIVED A WEEK LATER TO TAKE ON THE ROLE OF THE DRUID PRIESTESS AND WAS PROMPTLY FELLED BY THE FLU SO MS. EAGLEN MADE HER AMERICAN OPERA DEBUT IN ONE OF THE MOST DEMANDING ROLES OF THE REPERTOIRE WITH NO STAGE OR ORCHESTRA REHEARSALS IT WOULD BE NICE TO REPORT THAT THIS MUCH JINXED NORMA TURNED OUT TO BE AN UNQUALIFIED TRIUMPH BUT ALAS TO PARAPHRASE BERTOLT BRECHT THIS IS LIFE NOT OPERA FIRST HOWEVER THE GOOD NEWS MS. EAGLEN CAN CERTAINLY SING NORMA AND NOT MANY PEOPLE CAN SHE HAS THE NECESSARY RANGE AND VOCAL CONTROL THE POWER FOR THE ROLE'S STENTORIAN PARTS AND THE STAMINA FOR ITS LENGTH HER SOUND IS ROUND FULL AND HANDSOME HER COLORATURA FLEXIBLE IF A LITTLE WEIGHTIER THAN IS DESIRABLE AND SHE SINGS VERY BEAUTIFUL PIANISSIMOS HER VOICE SHOWED SOME STRAIN IN ACT TWO OCCASIONAL PITCH PROBLEMS CLIPPED OUT OF BREATH PHRASES AND A PINCHED HIGH NOTE BUT SHE DID SOME OF HER BEST SINGING IN THE DIFFICULT SOPRANO TENOR DUET OF THE OPERA'S HOME STRETCH BUT MS. EAGLEN HAD MORE TO CONTEND WITH THAN JUST THE LAST MINUTE CIRCUMSTANCES OF HER DEBUT DIRECTOR NICHOLAS MUNI APPARENTLY HAD OTHER THINGS ON HIS MIND THAN HELPING HIS LEADING LADY INHABIT NORMA'S EMOTIONAL ROLLER COASTER IN A BELIEVABLE WAY INSTEAD MR. MUNI AND HIS DESIGNER JOHN CONKLIN STAGED A NORMA STUFFED WITH UNCONVINCING IDEAS AND BIZARRE GESTURES AND LEFT MS. EAGLEN WHO IS A BIG WOMAN HIGH AND DRY THERE WASN'T MUCH SPARKLE TO THIS NORMA EVEN HER FIRST BIG SHOWPIECE THE DEATH DEFYING CABALETTA TO CASTA DIVA JUST LAY THERE IT WAS CLEAR WE WERE IN TROUBLE WHEN THE CURTAIN WENT UP ON A PILE OF BROKEN STATUARY WITH THE ROMAN EAGLE PLANTED IN ITS MIDST NO SIGN OF THE DRUIDS' SACRED FOREST THAT ONLY SHOWED UP AT THE END AS A PROJECTION OF BURNT TREE TRUNKS EVEN MORE OMINOUS WERE THE DRUIDS THEMSELVES LOOKING LIKE A BUNCH OF MALNOURISHED HARE KRISHNAS COMPLETE WITH ORANGE ROBES SHAVED PATES AND UNKEMPT FRINGES OF HAIR NORMA MONUMENTAL IN A TRAILING BLACK GOWN THAT SHE KEPT NERVOUSLY FLICKING AWAY HAD CLEARLY BEEN GETTING MOST OF THE RATIONS NOT THAT IT WAS DOING HER MUCH GOOD THE DRUIDS KEPT FALLING DOWN NO DOUBT TO DEMONSTRATE THEIR TOTAL SUBJUGATION AT THE HANDS OF THE ROMANS DURING THE SACRED RITES THEY LAY ON THEIR BACKS AND WAVED THEIR LEGS IN THE AIR AS THOUGH ATTACKED BY ROACH SPRAY AND DURING THE GUERRA GUERRA CHORUS OF ACT TWO THEY INDULGED IN AN ORGY OF SELF AND MUTUAL FLAGELLATION BLOOD AND ALL THIS BUNCH OF DRUIDS WOULDN'T GET FAR IN A FIGHT WITH THE ROMANS WHICH WAS PROBABLY THE POINT BUT BEATING THE AUDIENCE MEMBERS OVER THE HEAD WITH A CONCEPT IS NOT NECESSARILY THE WAY TO MAKE THEM FEEL IT THE LIGHTING BY DUANE SCHULER WAS EQUALLY OBVIOUS GUESS WHAT COLOR IT TURNED WHEN NORMA STARTED IN ON MY BURNING FURY AFTER SHE FOUND OUT THAT HER LOVER POLLIONE HAD BETRAYED HER WITH NOVICE PRIESTESS ADALGISA ALL EYES ARE SUPPOSED TO BE ON NORMA WHEN SHE APPEARS BUT MR. MUNI KEPT UPSTAGING HER FIRST BY GIVING POLLIONE VISITATION RIGHTS BEFORE NORMA'S FIRST SCENE WITH THEIR CHILDREN AND LATER IN THE FINALE BY HAVING SECOND BANANA SOPRANO ADALGISA SUSANNE MENTZER REACH UP AND TAKE THE SACRED SICKLE OUT OF NORMA'S HAND AS THE HEAD PRIESTESS CONFESSES THAT SHE HAS BROKEN HER VOWS MS. EAGLEN SEEMED PERPLEXED NORMA'S OUTBURSTS AND LIGHTNING SHIFTS FROM TENDERNESS TO RAGE CAME OUT OF NOWHERE WHEN SHE DID LET LOOSE IT WAS SOMETIMES JUST RIGHT AS WHEN SHE PRACTICALLY SPIT AT POLLIONE QUOTE NOW YOU ARE BEGGING QUOTE SOMETIMES SHE WENT OVER THE TOP AS IN HER SCENERY CHEWING PLEA TO OROVESO TO RESCUE HER CHILDREN AMONG MS. EAGLEN'S BEST MOMENTS WERE HER DUETS WITH MS. MENTZER WHO MADE A PASSIONATE CASE FOR ADALGISA WITH HER ATTRACTIVE MEZZO VOICE SHE AND MS. EAGLEN MAY HAVE SUCCEEDED AS A TWOSOME IN PART BECAUSE THEY WERE ALLOWED TO STAND STILL ALBEIT IN THE SAME FACE TO FACE PROFILE POSE BOTH TIMES UNFORTUNATELY MS. MENTZER'S ADALGISA BECAME EVER MORE TURBULENTLY FLAILINGLY DEMENTED FIRST SHE HACKED OFF HER HAIR WITH NORMA'S DAGGER IN A GESTURE OF SISTERHOOD THEN SHE OFFERED HERSELF ZOMBIELIKE AS THE WAR SACRIFICE AND FINALLY SHE COLLAPSED FRONT AND CENTER LIKE THE BRIDE OF FRANKENSTEIN RUN OUT OF JUICE AS POLLIONE THE ROMAN PROCONSUL WITH A TASTE FOR YOUNG DRUID PRIESTESSES TENOR CRAIG SIRIANNI LOOKED TOO CALLOW TO SEDUCE ANYBODY HE BELLOWED HIS WAY THROUGH THE MUSIC AND WHEN HE NEEDED TO SHOW EMOTION INSERTED A FEW SOBS WHEN HE WASN'T COLLAPSING BASS KENNETH COX DID SOLID WORK AS OROVESO THE HEAD MALE DRUID AND NORMA'S DAD THE CONDUCTOR EDUARDO MULLER SET THE TONE FOR THE SHOW WITH HIS BREAKNECK RENDITION OF ITS PRELUDE AND THEREAFTER COULDN'T OR DIDN'T DO MUCH TO PULL TOGETHER THE DRAMATIC LINE SO BRUTALLY FRACTURED BY THE PRODUCTION MS. EAGLEN IS SCHEDULED TO SING BRUNNHILDE IN CHICAGO'S RING CYCLE IN A FEW SEASONS' TIME PERHAPS A MIDWESTERN VALHALLA WILL BE A HAPPIER SHOWCASE FOR HER THAN THIS PACIFIC RIM GAUL MS. WALESON IS A MUSIC WRITER IN NEW YORK THE LENGTH OF THE WORKWEEK IN U. S. FACTORIES HIT A POST NINETEEN FORTY FIVE RECORD AT THE END OF LAST YEAR FORTY ONE POINT SEVEN HOURS THE LONGEST SINCE AMERICA WAS PUMPING OUT SHIPS AND PLANES FOR THE WAR EFFORT EXTRA OVERTIME ISN'T UNCOMMON FOR A SHORT PERIOD AFTER A RECESSION BUT THIS RECOVERY IS DIFFERENT THE LONGER WORKWEEK AT LEAST IN SOME MEASURE MAY BE HERE TO STAY HELPING KEEP THE UNEMPLOYMENT RATE STUBBORNLY HIGH FOR SOME TIME TO COME DURING THE EARLY MONTHS OF A RECOVERY WHEN ORDERS INCREASE CAUTIOUS EMPLOYERS TRADITIONALLY LOADED UP WORKERS WITH OVERTIME RATHER THAN RISK THE EXPENSE OF HIRING FULL TIME EMPLOYEES THEN AFTER THE RECOVERY TOOK HOLD THEY THROTTLED BACK ON OVERTIME ADDING MORE WORKERS AND SHORTENING THE AVERAGE NUMBER OF HOURS A PERSON SPENT ON THE JOB EACH WEEK THAT SHOULD HAVE HAPPENED THIS TIME TOO THE WORKWEEK SHOULD HAVE STARTED DECLINING SHORTLY AFTER THE CURRENT RECOVERY BEGAN IN APRIL NINETEEN NINETY ONE INSTEAD AVERAGE WEEKLY OVERTIME SURGED ONE MORE HOUR TO FOUR POINT FOUR HOURS BY THE END OF NINETEEN NINETY THREE QUOTE THE FUNDAMENTALS HAVE EVIDENTLY CHANGED FROM WHERE THEY WERE FIVE OR TEN YEARS AGO QUOTE SAYS PAUL C. BISHOP A SENIOR ECONOMIST AT W. E. F. A. GROUP A FORECASTING FIRM BASED IN BALA CYNWYD PENNSYLVANIA THERE APPEARS TO BE SOMETHING MUCH DEEPER GOING ON HERE IN TERMS OF WHEN FIRMS DO THEIR HIRING IT'S CALLED BENEFITS THE RISING EXPENSE OF BENEFITS IS DRIVING EMPLOYERS TO WAIT TILL THE LAST POSSIBLE MOMENT TO HIRE NEW WORKERS SINCE NINETEEN EIGHTY SEVEN ALONE THE COST OF BENEFITS FOR MANUFACTURING WORKERS HAS RISEN FORTY TWO PERCENT WHILE WAGES HAVE CLIMBED TWENTY FOUR PERCENT THE COST OF HEALTH BENEFITS HAS BEEN THE BIGGEST CULPRIT JUMPING SEVENTY EIGHT PERCENT IN THE SAME PERIOD EMPLOYERS EXPECT THAT TO GET EVEN WORSE UNDER THE CLINTON HEALTH PLAN GIVEN THAT WE SPENT THREE YEARS BRINGING DOWN OUR COST STRUCTURE WE AREN'T GOING TO TURN AROUND AND REVERSE THAT REAL QUICK BY GIVING OUT BENEFITS LEFT AND RIGHT SAYS KEN GOLDSTEIN A CONFERENCE BOARD ECONOMIST MANY EMPLOYERS LABOR LEADERS AND ECONOMISTS BELIEVE OVERTIME HAS SIMPLY BECOME ONE MORE TOOL IN A COMPANY'S FIGHT AGAINST MAJOR COSTS SUCH AS BENEFITS MR. BISHOP OF W. E. F. A. GROUP SAYS HE EXPECTED OVERTIME TO PEAK AT ABOUT THREE POINT SEVEN TO FOUR HOURS DURING THIS RECOVERY NOT SO WE ARE SEARCHING FOR THE NEW PEAK RIGHT NOW HE SAYS HIS GUESS OVERTIME IN MANUFACTURING MAY CONTINUE TO CLIMB TO FOUR POINT FIVE OR FOUR POINT SIX HOURS PER WEEK THIS PHENOMENON IS QUITE DIFFERENT IN THE SERVICE SECTOR WHICH MAKES UP THE BULK OF THE ECONOMY THERE EMPLOYERS TEND TO ADD PART TIMERS TO FILL PRODUCTION GAPS THUS ACTUALLY SHORTENING THE AVERAGE WORKWEEK OF COURSE NOT EVERYONE BELIEVES THAT THE LONGER WORKWEEK WILL STAY THAT WAY THE JURY IS STILL OUT SAYS LARRY KATZ CHIEF ECONOMIST AT THE LABOR DEPARTMENT THE ON AGAIN OFF AGAIN NATURE OF THIS RECOVERY HAS SPOOKED EMPLOYERS INTO HOLDING BACK FROM SUBSTITUTING NEW HIRES FOR OVERTIME BUT HE BELIEVES THAT'S JUST TEMPORARY GIVE EMPLOYERS A FEW MORE MONTHS OF SOLID GROWTH UNDER THEIR BELTS HE SAYS AND THEY MAY BEGIN BEHAVING THE WAY THEY HAVE IN PAST RECOVERIES ADDING TO PAYROLLS INDEED SOME ECONOMISTS BELIEVE THE LONG WORKWEEK IS A VERY GOOD SIGN THAT HIRING IS ABOUT TO RAPIDLY PICK UP ONE REASON THAT MIGHT HAPPEN LOTS OF WORKERS ARE GETTING TIRED OF THE NEW MARATHON HOURS TAKE ALVA LEWIS FOR EXAMPLE A MILLWRIGHT AT A GENERAL MOTORS CORPORATION PLANT IN OHIO HE JUMPED AT THE CHANCE TO EARN OVERTIME PAY LAST YEAR AND ENDED UP TAKING ONLY THREE DAYS OFF IN ALL OF NINETEEN NINETY THREE BUT HE'S LESS INCLINED TO WORK THAT HARD AGAIN THIS YEAR A LOT OF US ARE GETTING TIRED OF IT HE SAYS QUOTE I HAVE A BOAT ON LAKE ERIE AND I ONLY GOT INTO IT ONE TIME LAST YEAR QUOTE BUT FOR EVERY ALVA LEWIS THERE'S ALSO AN A. J. LAWLS FOR EIGHT MONTHS LAST YEAR MR. LAWLS EARNED OVERTIME AND HE LIKED IT WHEN FORD MOTOR COMPANY CUT OUT THE OVERTIME WE WERE KIND OF DISAPPOINTED HE SAYS MOST OF US FEEL IT WAS EXTRA MONEY IN OUR POCKETS HE SAYS THAT IF HE WERE OFFERED OVERTIME AGAIN HE WOULD GRAB IT THUS WHATEVER HIRING THAT IS DONE IN THE NEAR TERM WILL PROBABLY BE DONE AT THE MARGINS ARGUES LEO TROY A LABOR ECONOMIST AT RUTGERS UNIVERSITY BUSINESSES WILL BE FORCED TO HIRE NEW PEOPLE BUT IT WILL BE AS SMALL AN INCREASE AS POSSIBLE HE PREDICTS THERE WON'T BE A SHARP DROP IN WORK HOURS ORGANIZED LABOR DOESN'T LIKE THAT OF COURSE IT'S FINE THAT THERE'S MORE WORK TO DO BUT UNIONS NATURALLY PREFER SPREADING IT OVER MORE WORKERS ONE REASON THERE HASN'T BEEN GREATER HIRING LABOR LEADERS SAY IS THAT THE OVERTIME RATE THE PENALTY TO EMPLOYERS IS TOO LOW WHEN THE FEDERAL GOVERNMENT MANDATED IN NINETEEN THIRTY EIGHT THAT EMPLOYERS PAY WORKERS TIME AND A HALF FOR ANY HOUR WORKED PAST FORTY THE MOVE WAS INTENDED TO HELP PREVENT THE SORT OF SUBSTITUTION OF OVERTIME FOR NEW HIRES THAT'S GOING ON NOW BUT WITH THE COST OF BENEFITS THEMSELVES NOW EQUAL TO FIFTY PERCENT OF THE WAGES OF MANUFACTURING WORKERS A FIFTY PERCENT OVERTIME PENALTY DOESN'T SEEM NEARLY AS ONEROUS AS IN THE MID NINETEEN SIXTIES WHEN THE COST OF BENEFITS EQUALED LESS THAN TWENTY FIVE PERCENT OF WAGES TO DISCOURAGE THE USE OF OVERTIME SAYS JOHN ZALUSKY HEAD OF THE OFFICE OF WAGES AND INDUSTRIAL RELATIONS FOR THE A. F. L. C. I. O. WE'D LIKE DOUBLE TIME OR TRIPLE TIME INSTEAD OF TIME AND A HALF BUT THAT ISN'T LIKELY TO HAPPEN SOON WHAT THEN MIGHT CAUSE A NOTABLE DROP IN THE LENGTH OF THE WORKWEEK THAT'S EASY ASSERTS GORDON RICHARDS ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS THE NEXT RECESSION THE FIRST THING EMPLOYERS DO IN A DOWNTURN IS SLASH OVERTIME UNITED KINGDOM LEISURE AND ENTERTAINMENT CONCERN THORN E. M. I. P. L. C. SAID IN LONDON THAT IT WILL AUGMENT ITS CURRENT TWICE ANNUAL RESULTS ANNOUNCEMENTS WITH QUARTERLY STATEMENTS THE COMPANY WILL MAKE ITS FIRST QUARTERLY ANNOUNCEMENT FEBRUARY TWENTY SECOND WITH A STATEMENT ON THE GROUP'S RESULTS FOR THE NINE MONTH PERIOD ENDING IN DECEMBER NINETEEN NINETY THREE THORN WHICH HAS INTERESTS IN MUSIC RENTALS AND ELECTRONICS SAID IT WILL ANNOUNCE ON MAY TWENTY FOURTH RESULTS FOR ITS FINANCIAL YEAR ENDING MARCH THIRTY FIRST THE COMPANY SAID IT DECIDED TO STEP UP THE NUMBER OF STATEMENTS IN LIGHT OF A LONDON STOCK EXCHANGE'S CONSULTIVE DOCUMENT ON THE DISSEMINATION OF PRICE SENSITIVE INFORMATION ALTHOUGH THE EXCHANGE DIDN'T GIVE COMPANIES REPORTING GUIDELINES IT URGED THEM TO FORMALLY DISCLOSE PRICE SENSITIVE INFORMATION IN PART TO PREVENT SELECTIVE LEAKS TO THE PRESS COMCAST CORPORATION SAID IT FORMALLY ADOPTED A PLAN TO BUY THE EIGHT PERCENT OF COMCAST CABLEVISION OF PHILADELPHIA THAT IT DOESN'T ALREADY OWN COMCAST A CABLE COMMUNICATIONS SYSTEMS CONCERN SAID IN OCTOBER THAT IT PLANNED TO PAY SHAREHOLDERS OF COMCAST CABLEVISION OF PHILADELPHIA NINETY FIVE DOLLARS A SHARE OR A TOTAL OF ABOUT FOURTEEN MILLION DOLLARS FOR THE ONE HUNDRED FIFTY THOUSAND COMCAST CABLEVISION SHARES IT SAID IT EXPECTS THE MERGER TO BE COMPLETED IN ABOUT SIXTY DAYS COMCAST CABLEVISION OF PHILADELPHIA IS THE PARTNERSHIP THAT OWNS A CABLE TELEVISION SYSTEM SERVING PARTS OF PHILADELPHIA BAROID CORPORATION HOUSTON SAID IT EXPECTS TO REPORT FOURTH QUARTER NET INCOME IN THE RANGE OF FIFTEEN MILLION DOLLARS OR SIXTEEN CENTS A SHARE TO NINETEEN MILLION DOLLARS OR TWENTY CENTS A SHARE BETTER THAN ANALYSTS GENERALLY FORECAST THE SUPPLIER OF PETROLEUM SERVICES AND EQUIPMENT WHICH AGREED TO BE ACQUIRED BY DRESSER INDUSTRIES INCORPORATED IN A STOCK PURCHASE WITH AN INDICATED VALUE OF ABOUT EIGHT HUNDRED FIFTY MILLION DOLLARS ALSO SAID IT EXPECTS TO REPORT A FOURTH QUARTER CHARGE OF THIRTY MILLION DOLLARS OR THIRTY TWO CENTS A SHARE RELATED TO THE ACQUISITION IN THE FOURTH QUARTER OF NINETEEN NINETY TWO BAROID HAD NET INCOME OF FIVE POINT SIX MILLION DOLLARS OR EIGHT CENTS A SHARE ON SALES OF ONE HUNDRED SEVENTY MILLION DOLLARS BAROID SAID THE LATEST QUARTER'S CHARGE INCLUDES SEVERANCE COSTS FROM THE PROPOSED DRESSER PURCHASE HOLDERS OF BOTH COMPANIES ARE SCHEDULED TO VOTE ON THE PURCHASE WEDNESDAY DRESSER MAKES EQUIPMENT FOR REFINERIES PETROCHEMICALS AND LIQUEFIED NATURAL GAS PRODUCTS THIS BRITISH PHARMACEUTICAL COMPANY CONFIRMED JOHN ROBB AS CHAIRMAN AND CHIEF EXECUTIVE MR. ROBB WAS APPOINTED TEMPORARILY TO THE JOBS IN AUGUST AFTER SIR ALISTAIR FRAME RETIRED AS CHAIRMAN MEANWHILE SIR ANTHONY TENNANT JOINED THE WELLCOME BOARD AS DEPUTY CHAIRMAN SIR ANTHONY ALSO IS CHAIRMAN OF THE UNITED KINGDOM AUCTION HOUSE CHRISTIE'S INTERNATIONAL AS WELL AS A NONEXECUTIVE DIRECTOR AT LEISURE COMPANY FORTE P. L. C. AND INSURANCE CONCERN GUARDIAN ROYAL EXCHANGE P. L. C. BELDEN AND BLAKE CORPORATION SAID IT PURCHASED QUOTE SUBSTANTIALLY ALL QUOTE OF TGX CORPORATION'S NEW YORK AND OHIO ASSETS FOR FIFTEEN POINT FIVE MILLION DOLLARS BELDEN SAID THE TRANSACTION WAS EFFECTIVE DECEMBER FIRST NINETEEN NINETY THREE TGX IS AN OIL AND GAS EXPLORATION COMPANY BASED IN HOUSTON BELDEN NORTH CANTON OHIO SAID THE ASSETS ACQUIRED INCLUDE AN AVERAGE WORKING INTEREST OF EIGHTY EIGHT PERCENT IN ONE THOUSAND THIRTY FOUR OIL AND GAS WELLS ON ABOUT ONE HUNDRED TWENTY ONE THOUSAND LEASEHOLD ACRES IN NORTHEASTERN OHIO AND SOUTHWESTERN NEW YORK ABOUT FIFTEEN THOUSAND UNDEVELOPED LEASEHOLD ACRES IN THE PROXIMITY OF THE EXISTING PRODUCTION AND RELATED PRODUCTION EQUIPMENT AND SUPPLIES THE COMPANY ALSO SAID TGX HAS RETAINED THE RIGHT TO PARTICIPATE IN THE DEVELOPMENT OF THE UNDEVELOPED ACREAGE BELDEN ACQUIRES PRODUCES AND DEVELOPS OIL AND GAS PROPERTIES AND GATHERS AND MARKETS NATURAL GAS IN THE APPALACHIAN BASIN NANCY J. PEDOT FORTY TWO YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER AND STUART G. MOLDAW SIXTY SIX WAS NAMED CHAIRMAN OF THIS SPECIALTY RETAILER MS. PEDOT WHO RETAINS HER POST AS GYMBOREE PRESIDENT AND MR. MOLDAW A GYMBOREE DIRECTOR SUCCEED DONALD S. COHN FORTY NINE WHO RESIGNED FROM HIS POSTS AS CHAIRMAN DIRECTOR AND CHIEF EXECUTIVE THE MOVES LEAVE A VACANCY ON THE SEVEN MEMBER BOARD UNION BANK OF SWITZERLAND ZURICH ANNOUNCED OVER THE WEEKEND THAT IT INTENDS TO ACQUIRE A SMALL SWISS REGIONAL BANK IN A CASH AND STOCK TRANSACTION THE BOARD OF THE BANK TO BE ACQUIRED SOLOTHURNER HANDELSBANK HAS APPROVED THE TAKEOVER OFFER HANDELSBANK HAS TWO BILLION SWISS FRANCS ONE POINT THREE FIVE BILLION DOLLARS IN ASSETS SEVEN OUTLETS AND ONE HUNDRED FORTY SIX EMPLOYEES THE TAKEOVER MARKS THE LATEST IN A STRING OF ACQUISITIONS AND MERGERS OF SMALL SWISS BANKS MANY OF WHICH HAVE FACED DIFFICULTIES FROM THE SLUGGISH SWISS ECONOMY AND REAL ESTATE MARKET UNION BANK OF SWITZERLAND IS THE LARGEST OF SWITZERLAND'S BIG THREE COMMERCIAL BANKS QUIDEL CORPORATION SAN DIEGO EXPECTS TO REPORT RESULTS QUOTE BETWEEN BREAK EVEN AND A TWO CENT A SHARE LOSS QUOTE FOR ITS THIRD QUARTER ENDED DECEMBER THIRTY FIRST SAID SCOTT L. GLENN CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN THE YEAR AGO QUARTER QUIDEL EARNED TWO HUNDRED EIGHTY FIVE THOUSAND DOLLARS OR TWO CENTS A SHARE ON SALES OF SEVEN POINT FIVE MILLION DOLLARS ANALYSTS HAD FORECAST EARNINGS OF BETWEEN TWO CENTS AND THREE CENTS A SHARE FOR THE LATEST QUARTER MR. GLENN SAID THE LOWER THAN EXPECTED EARNINGS ARE DUE IN PART TO DISAPPOINTING SALES OF ITS STREP THROAT DIAGNOSTIC PRODUCT QTEST STREP ITS TOP SELLING ITEM HE SAID THE LATE AND MILD WINTER IN THE EAST DEPRESSED SALES IN ADDITION THE EXECUTIVE SAID THAT BECAUSE CHAIN RETAIL DRUGSTORES ENJOYED A STRONG CHRISTMAS SEASON QUIDEL'S ONE STEP TEST INTRODUCED JUST SIX MONTHS AGO WASN'T ALLOTTED SHELF SPACE AT MANY DRUGSTORES QUIDEL DEVELOPS AND PRODUCES NONINSTRUMENTAL DIAGNOSTIC TESTS FOR PHYSICIANS CLINICAL LABORATORIES AND THE HOME TESTING MARKET BRADLEY T. HARSLEM FORTY ONE YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF INFORMATION OFFICER OF THE COUNTRY'S LARGEST INTERCITY BUS COMPANY HE WILL BE RESPONSIBLE FOR GREYHOUND'S INFORMATION SYSTEMS DEVELOPMENT AND OPERATION MR. HARSLEM JOINS GREYHOUND FROM A. M. R. CORPORATION'S AMERICAN AIRLINES UNIT WHERE HE HELPED DEVELOP PARTS OF THE SABRE RESERVATIONS SYSTEM METALLGESELLSCHAFT'S ONE HUNDRED TWENTY BANK CREDITORS PULLED THE BIG GERMAN INDUSTRIAL GROUP BACK FROM AN IMMINENT BANKRUPTCY LAW FILING BY AGREEING TO A RESCUE PACKAGE OF ABOUT ONE POINT NINE BILLION DOLLARS THE ACCORD CALLS FOR BIGGER CASH CONTRIBUTIONS FROM DEUTSCHE BANK AND DRESDNER BANK TO OVERCOME OPPOSITION FROM FRENCH CREDITORS AND CLEARS THE WAY FOR A RESTRUCTURING THAT INCLUDES SELLING SEVERAL BUSINESSES MEDICAL CARE SIGNED AN AGREEMENT TO SELL ITS HOME INFUSION UNIT TO CAREMARK FOR ABOUT ONE HUNDRED SEVENTY FIVE MILLION DOLLARS PROCEEDS WILL BE USED TO BUY BACK SHARES IN A MODIFIED QUOTE DUTCH AUCTION QUOTE U. S. PROSECUTORS PLAN TO SEEK CRIMINAL CHARGES AGAINST A U. S. UNIT OF LUCAS INDUSTRIES FOR SELLING THE PENTAGON ALLEGEDLY DEFECTIVE MISSILE HARDWARE LAW ENFORCEMENT OFFICIALS SAID INDUSTRIAL PRODUCTION ROSE ZERO POINT SEVEN PERCENT IN DECEMBER DRIVEN BY HIGH AUTO PRODUCTION AN INDEX OF CONSUMER SENTIMENT FOR EARLY JANUARY ALSO JUMPED G. M. AND THE U. A. W. REACHED A TENTATIVE ACCORD TO END A STRIKE AT G. M.'S SHREVEPORT LOUISIANA PICKUP TRUCK PLANT THAT WAS CALLED TO PROTEST THE AUTO MAKER'S EFFORT TO BOOST PRODUCTIVITY INVESCO FUNDS MANAGER KAWESKE WAS REAPING PERSONAL REWARDS FROM A COMPANY IN WHICH HIS FUNDS LATER INVESTED LONG BEFORE HE WAS FIRED FOR ALLEGEDLY FAILING TO REPORT PERSONAL STOCK TRADES REGULATORY FILINGS SHOW PRUDENTIAL SECURITIES WAS ORDERED TO PAY A TOTAL OF THREE POINT SEVEN MILLION DOLLARS TO FIVE FORMER EXECUTIVES WHO HAD OPERATED A SUBSIDIARY IN PUERTO RICO AND ACCUSED THE FIRM OF WRONGFUL TERMINATION WAL MART AGREED TO ACQUIRE ABOUT ONE HUNDRED TWENTY WOOLCO STORES IN CANADA FROM WOOLWORTH'S CANADIAN SUBSIDIARY A. T. AND T. PLANS A ONE POINT THREE BILLION DOLLAR FOURTHQUARTER CHARGE TO COMPLY WITH NEW ACCOUNTING RULES AND IS EXPECTED TO CUT UP TO ONE THOUSAND FIVE HUNDRED JOBS OR NINETEEN PERCENT OF PERSONNEL IN ITS INTERNAL COMPUTER OPERATIONS UNIT SEGA ENTERPRISES SAID MICROSOFT AGREED TO DEVELOP SOFTWARE FOR ITS NEXT GENERATION VIDEO GAME MACHINES COOPERS AND LYBRAND'S CHAIRMAN PLANS TO RETIRE IN OCTOBER FREEDMAN HAD SURVEYED PARTNERS ABOUT A RE ELECTION BID BUT DECIDED TO STEP DOWN THE U. S. WOULD CONSIDER LETTING JAPAN END ITS VOLUNTARY QUOTAS ON CAR EXPORTS TO THE U. S. INSTEAD THE U. S. WOULD FOCUS ON DEMANDING BENCHMARKS OF IMPROVED ACCESS TO JAPAN'S MARKET WHITE HOUSE OFFICIALS SAID DOW CORNING PLANS A FOURTH QUARTER PRETAX CHARGE OF SIX HUNDRED FORTY MILLION DOLLARS BASED ON ITS ESTIMATE OF POTENTIAL LIABILITY UNDER A PROPOSED FOUR POINT SEVEN FIVE BILLION DOLLAR SETTLEMENT OF ALL BREAST IMPLANT SUITS THE HIGH COURT AGREED TO WEIGH DEMANDS FOR CONSTITUTIONAL LIMITS ON PUNITIVE DAMAGE AWARDS IN CIVIL SUITS A DUTCH PUBLISHER AGREED TO BUY B. P. I. COMMUNICATIONS THE PUBLISHER OF ADWEEK BILLBOARD AND SEVENTEEN OTHER SPECIALTY MAGAZINES FOR TWO HUNDRED TWENTY MILLION DOLLARS BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED SEVENTY SIX POINT FIVE EIGHT OFF NINETEEN POINT OH THREE COMMODITIES OIL FOURTEEN DOLLARS AND SEVENTY EIGHT CENTS A BARREL UP TWENTY SEVEN CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY TWO POINT SIX FIVE OFF ZERO POINT ZERO SEVEN SPOT INDEX ONE HUNDRED THIRTY POINT TWO EIGHT UP ZERO POINT THREE FIVE DOLLAR ONE HUNDRED ELEVEN POINT OH SIX YEN OFF ZERO POINT SEVEN ZERO ONE POINT SEVEN FOUR NINE FIVE MARKS OFF ZERO POINT ZERO ZERO ONE ZERO STEPHEN PROSTANO THIRTY SIX YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THE U. S. OPERATIONS OF THE CHASE MANHATTAN PRIVATE BANK WHICH SERVES THE BANK'S WEALTHY CUSTOMERS WORLD WIDE MR. PROSTANO FORMERLY A FIRST VICE PRESIDENT FOR MELLON BANK CORPORATION WILL BE FILLING A NEWLY CREATED POSITION VIDEO GAME MAKER SEGA ENTERPRISES LIMITED SAID MICROSOFT CORPORATION WILL DEVELOP SOFTWARE FOR ITS NEXT GENERATION GAME MACHINES AN ALLIANCE BRINGING CLOSER TO REALITY THE MUCH HERALDED CONVERGENCE OF PERSONAL COMPUTERS AND VIDEOGAME MACHINES MICROSOFT WILL DEVELOP AN ORIGINAL OPERATING SYSTEM FOR A PLANNED SEGA GAME MACHINE CALLED THE SATURN A SEGA SPOKESWOMAN IN TOKYO SAID MICROSOFT OFFICIALS COULDN'T BE REACHED FOR COMMENT OPERATING SYSTEMS CONTROL THE BASIC FUNCTIONS OF COMPUTERS MAKING THEM EASIER TO USE AND TO PROGRAM BY PROVIDING A LAYER OF USER FRIENDLY COMMANDS BETWEEN A COMPUTER'S HARDWARE AND THE USER MICROSOFT BUILT ITS CURRENT EMPIRE LARGELY ON D. O. S. ITS HUGELY SUCCESSFUL OPERATING SYSTEM FOR PERSONAL COMPUTERS THAT ARE COMPATIBLE WITH INTERNATIONAL BUSINESS MACHINES CORPORATION EQUIPMENT SEGA'S DECISION TO ADD AN OPERATING SYSTEM TO ITS GAME COMPUTERS IS THE CLEAREST SIGN YET THAT GAME MACHINES AND PERSONAL COMPUTERS ARE STARTING TO JOSTLE OVER THE SAME TURF ADDING AN OPERATING SYSTEM TO THE SATURN MAY MAKE IT EASIER FOR GAME DEVELOPERS TO WRITE SOFTWARE FOR THE MACHINE IT ALSO MIGHT GIVE THE SATURN THE ABILITY TO SERVE AS A SO CALLED SET TOP BOX A PIECE OF HARDWARE THAT SOMEDAY MAY SERVE AS A CONTROL FOR SUCH MULTIMEDIA FUNCTIONS AS INTERACTIVE TELEVISION THE MOVE ALSO IS MICROSOFT'S FIRST MAJOR STEP INTO THE LUCRATIVE GAME COMPUTER MARKET DOMINATED BY SEGA AND ARCHRIVAL NINTENDO COMPANY WHILE IT HASN'T PREVIOUSLY ENTERED THE HOME GAME COMPUTER MARKET MICROSOFT HAS AGGRESSIVELY PUSHED ITS WINDOWS P. C. OPERATING SOFTWARE AS A STANDARD NOT JUST FOR PERSONAL COMPUTERS BUT ALSO FOR A VARIETY OF OTHER HARDWARE SUCH AS PHOTOCOPIERS AND FAX MACHINES SEGA DECLINED TO SAY WHETHER MICROSOFT'S OPERATING SYSTEM FOR THE SATURN WOULD BE COMPATIBLE WITH P. C. SOFTWARE BY SIGNING UP MICROSOFT SEGA IS CONTINUING TO SET THE PACE IN PUSHING NEW TECHNOLOGIES FOR THE GAME COMPUTER MARKET THE COMPANY FIRST RELEASED A C. D. ROM PLAYER A DEVICE THAT PLAYS GAME SOFTWARE FROM COMPACT DISKS SEVERAL YEARS AGO A MOVE THAT OTHER GAME MAKERS ARE ONLY NOW STARTING TO COPY NINTENDO HAS YET TO ANNOUNCE PLANS FOR A C. D. ROM DEVICE SEGA ALSO PLANS TO INTRODUCE THE FIRST CABLE T. V. VIDEO GAME CHANNEL LATER THIS YEAR IN THE U. S. ANALYSTS SAID THE DEAL ISN'T LIKELY TO HAVE MUCH EFFECT ON SEGA'S INTRODUCTION OF THE SATURN LATER THIS YEAR THE SIGNIFICANT FACTORS AFFECTING SALES THEY SAID WILL BE HARDWARE PRICING AND THE AVAILABILITY OF HOT NEW GAMES NOT WHETHER THE GAME COMPUTER CAN FUNCTION AS A SET TOP BOX THE NEW ALLIANCE ALSO COULD POSE LONGER TERM RISKS FOR SEGA BY ALLOWING MICROSOFT TO CONTROL ITS OPERATING SYSTEM SEGA MAY BE OPENING THE DOOR TO EROSION OF ITS PROPRIETARY GAME HARDWARE STANDARD THE MAIN SOURCE OF ITS HUGE PROFITS QUOTE YOU CAN'T KEEP MICROSOFT FROM GOING OUT AND SIGNING CONTRACTS WITH ALL SEGA'S COMPETITORS AS WELL QUOTE SAID JOSEPH OSHA AN ANALYST WITH BARING SECURITIES JAPAN LIMITED IF THAT HAPPENS THE DIFFERENCES BETWEEN DIFFERENT GAME MACHINES SUCH AS THOSE FROM NINTENDO AND SEGA COULD VANISH OVER TIME WITH THEM WOULD GO MUCH OF THE REVENUE THOSE COMPANIES CURRENTLY ATTRACT WINTERTHUR SWISS INSURANCE COMPANY SAID IT PLANS TO ANNOUNCE A QUOTE MAJOR EXPANSION QUOTE AT A NEWS CONFERENCE TODAY THE COMPANY DIDN'T PROVIDE ANY MORE DETAILS WINTERTHUR SHARES ROSE FOURTEEN SWISS FRANCS TO EIGHT HUNDRED TWENTY FRANCS FIVE HUNDRED FIFTY FOUR DOLLARS IN TRADING IN ZURICH FRIDAY THERE WAS SPECULATION THAT WINTERTHUR MAY ANNOUNCE PLANS TO BUY COMMERZBANK A. G.'S CONTROLLING STAKE IN GERMAN INSURER DEUTSCHEN BEAMTENVERSICHERUNGSKASSE OR DBV COMMERZBANK HAS ALSO CALLED A NEWS CONFERENCE FOR TODAY COMMERZBANK HOLDS A STAKE OF FIFTY PERCENT PLUS ONE SHARE IN THE GERMAN INSURER WHICH HAS THREE POINT FOUR BILLION MARKS ONE POINT NINE FOUR BILLION DOLLARS IN ANNUAL PREMIUMS WINTERTHUR DECLINED TO COMMENT ON THE SPECULATION LAST MONTH WINTERTHUR SOLD ITS TWENTY EIGHT PERCENT STAKE IN SWITZERLAND'S MEDIUM SIZE HELVETIA VERSICHERUNGEGEN INSURANCE GROUP WHICH HAS A STRONG MARKET POSITION IN GERMANY A CURTISS WRIGHT CORPORATION UNIT SETTLED FOR SEVENTEEN POINT FIVE MILLION DOLLARS A CIVIL FRAUD CASE IN WHICH THE U. S. GOVERNMENT HAD CHARGED THE DEFENSE CONTRACTING CONCERN WITH DEFRAUDING AND OVERCHARGING IT THE CIVIL ACTION RESULTED FROM A RELATED CRIMINAL PROSECUTION IN WHICH TEN EMPLOYEES OF THE UNIT TARGET ROCK CORPORATION EAST FARMINGDALE N. Y. WERE CONVICTED BROOKLYN U. S. ATTORNEY ZACHARY CARTER SAID TARGET ROCK WHICH MAKES VALVES USED BY THE NAVY IN ITS NUCLEAR FLEET ALLEGEDLY MISCHARGED LABOR HOURS TO NAVY CONTRACTS AND SUBMITTED FALSE INVOICES AND EXPENSE REPORTS CURTISS WRIGHT SAID THE SETTLEMENT WHICH WASN'T AN ADMISSION OF LIABILITY WOULD REDUCE NET EARNINGS FOR THE FOURTH QUARTER AND FULL YEAR NINETEEN NINETY THREE BY ABOUT EIGHT POINT FOUR MILLION DOLLARS OR ONE DOLLAR AND SIXTY SEVEN CENTS A SHARE AND RESULT IN A LOSS FOR THOSE PERIODS FOR THE FIRST NINE MONTHS THE COMPANY HAD NET INCOME OF EIGHT POINT ONE MILLION DOLLARS OR ONE DOLLAR AND SIXTY ONE CENT SHARE ALLTEL CORPORATION LITTLE ROCK ARKANSAS SAID HIBERNIA NATIONAL BANK OF NEW ORLEANS SIGNED A SEVEN YEAR CONTRACT UNDER WHICH AN ALLTEL SUBSIDIARY WILL PROVIDE COMPLETE DATA PROCESSING SERVICES TO THE BANK TERMS WEREN'T DISCLOSED THE TELECOMMUNICATIONS AND INFORMATION SERVICES COMPANY SAID THE PROCESSING WILL BE HANDLED AT ITS SYSTEMATICS FINANCIAL SERVICES DIVISION'S LITTLE ROCK CENTER HIBERNIA WHICH HAS SIGNED MERGER AGREEMENTS WITH FOUR LOUISIANA FINANCIAL INSTITUTIONS WILL RELY ON SYSTEMATICS FOR CONVERSION OF THE BANKS TO THE COMMON SOFTWARE PLATFORM HIBERNIA ESTIMATED THE CONTRACT WILL CUT ITS DATA PROCESSING COSTS BY FORTY MILLION DOLLARS OVER THE LIFE OF THE CONTRACT ALLTEL SAID OHIO CASUALTY CORPORATION SAID ITS FOURTH QUARTER PROFIT WAS REDUCED BY ABOUT SIXTY TWO CENTS A SHARE BECAUSE OF A SEVENTEEN POINT TWO MILLION DOLLAR CONTINGENT LIABILITY FOR THE COMPANY'S SHARE OF THE NEW JERSEY MARKET TRANSITION FACILITY OPERATING LOSSES OHIO EARNED THIRTY TWO POINT ONE MILLION DOLLARS OR ONE DOLLAR AND SEVENTY NINE CENTS A SHARE IN THE YEAR EARLIER QUARTER THE MTF RECORDED NET LOSSES OF ABOUT FOUR HUNDRED MILLION DOLLARS IN BOTH NINETEEN NINETY ONE AND NINETEEN NINETY TWO OHIO CASUALTY HAD AN APPROXIMATE TWO PERCENT MARKET SHARE FOR THE ASSESSMENT PERIOD THE FIRST PAYMENT IS DUE IN FEBRUARY NINETEEN NINETY FOUR TO COVER NINETEEN NINETY ONE MTF OPERATING LOSSES AND THE SECOND PAYMENT WILL BE DUE IN FEBRUARY NINETEEN NINETY FIVE TO COVER NINETEEN NINETY TWO MTF OPERATING LOSSES THE MTF WAS ESTABLISHED IN OCTOBER NINETEEN NINETY TO REPLACE THE NEW JERSEY JOINT UNDERWRITING ASSOCIATION IN PROVIDING AUTOMOBILE INSURANCE POLICIES FOR INDIVIDUALS WHO COULDN'T OBTAIN INSURANCE ELSEWHERE ALIAS RESEARCH INCORPORATED SAID IN TORONTO THAT IT IS BEING FORMALLY INVESTIGATED BY THE U. S. SECURITIES AND EXCHANGE COMMISSION ALIAS DISCLOSED IN NOVEMBER NINETEEN NINETY TWO THAT AN INFORMAL S. E. C. INVESTIGATION WAS UNDER WAY NOW THE PROBE HAS BEEN MADE FORMAL WHICH ALLOWS THE S. E. C. TO SUBPOENA PARTIES INVOLVED IN THE CASE ALIAS SAID IT SAID THE INVESTIGATION IS BEING CONDUCTED PRIVATELY THE SOFTWARE DESIGN CONCERN SAID THE S. E. C.'S FORMAL ORDER CONFIRMED WHAT THE COMPANY HAD BELIEVED WAS THE FOCUS OF THE INVESTIGATION IT SAID THE FOCUS IS THE COMPANY'S PUBLIC DISCLOSURES DURING AND RELATED TO ITS FISCAL YEAR ENDED JANUARY THIRTY FIRST NINETEEN NINETY TWO AND THE QUOTE UNDERLYING FINANCIAL RECORDS AND RESULTS FOR THIS PERIOD QUOTE THE PROBE ALSO FOCUSES ON TRADING IN ALIAS SECURITIES BY CERTAIN FORMER OFFICERS AND DIRECTORS DURING NINETEEN NINETY ONE THE COMPANY SAID IT DIDN'T ELABORATE ALIAS SAID IT HAS BEEN COOPERATING FULLY WITH THE S. E. C. PATRICK BUTLER FORTY FOUR YEARS OLD WAS ELECTED A VICE PRESIDENT WITH RESPONSIBILITY FOR PUBLIC POLICY NEW BUSINESS AND SPECIAL CORPORATE PROJECTS THE POSITION IS NEW HE WAS MOST RECENTLY A VICE PRESIDENT AT THIS MEDIA COMPANY'S NEWSWEEK MAGAZINE AND VICE PRESIDENT OF LEGI SLATE THE COMPANY'S INFORMATION SERVICES UNIT SUN SPORTSWEAR INCORPORATED KENT WASHINGTON SAID IT EXPECTS TO REPORT NINETEEN NINETY THREE EARNINGS WERE TWO POINT FIVE MILLION DOLLARS TO TWO POINT NINE MILLION DOLLARS IMPLYING FOURTH QUARTER EARNINGS OF ONE HUNDRED THOUSAND DOLLARS TO FOUR HUNDRED THOUSAND DOLLARS THE CLOTHING CONCERN ESTIMATED NINETEEN NINETY THREE SALES OF ONE HUNDRED SEVEN MILLION DOLLARS TO ONE HUNDRED EIGHT MILLION DOLLARS IMPLYING FOURTH QUARTER SALES OF TWENTY EIGHT POINT FOUR MILLION DOLLARS TO TWENTY FIVE POINT FOUR MILLION DOLLARS IN THE YEAR EARLIER FOURTH QUARTER SUN EARNED ONE HUNDRED NINETEEN THOUSAND DOLLARS OR TWO CENTS A SHARE ON TWENTY POINT FOUR MILLION DOLLARS IN SALES IN A STATEMENT THE CASUAL SPORTSWEAR MAKER SAID FORTY SIX PERCENT OF LAST YEAR'S SALES CAME FROM PRODUCTS BEARING LICENSED DESIGNS INCLUDING LOONEY TUNES CHARACTERS SUN ADDED THAT IT HOPES TO FATTEN PROFIT MARGINS AND LOWER COSTS THROUGH RECENT INVESTMENTS IN NEW TECHNOLOGY INCLUDING A COMPUTER AIDED DESIGN SYSTEM FOR ART PRODUCTION HALLIBURTON COMPANY DALLAS SAID IT EXPECTS TO REPORT A PRETAX CHARGE OF SIXTY TWO MILLION DOLLARS RELATED TO THE PREVIOUS SALE OF ASSETS FOR THE FOURTH QUARTER HALLIBURTON SAID THE CHARGE RELATES TO THE SALE OF ITS SEISMIC RELATED BUSINESS TO WESTERN ATLAS INTERNATIONAL INCORPORATED THE OILFIELD SUBSIDIARY OF LITTON INDUSTRIES INCORPORATED HALLIBURTON AN ENERGY SERVICES COMPANY SAID THE CHARGE INVOLVES COSTS ASSOCIATED WITH THE SALE SUCH AS INCREASED EXPENSES FOR SEVERANCE OF EMPLOYEES TERMINATION OF CONTRACTS REVALUATION OF ASSETS AND EXPECTED LOSSES ON SOME EXISTING CONTRACTS IN THE YEAR EARLIER FOURTH QUARTER HALLIBURTON HAD A NET LOSS OF ONE HUNDRED SEVENTY EIGHT POINT TWO MILLION DOLLARS OR ONE DOLLAR AND SIXTY SIX CENTS A SHARE AFTER RESTRUCTURING CHARGES OF ONE HUNDRED EIGHTY FIVE POINT EIGHT MILLION DOLLARS REVENUE WAS ONE POINT SIX NINE BILLION DOLLARS THE COMPANY ALSO SAID IT COMPLETED THE SALE OF ITS SEISMIC BUSINESS TO WESTERN ATLAS FOR ONE HUNDRED NINETY MILLION DOLLARS IN CASH AND SENIOR NOTES JAMES F. GIBBONS DEAN OF STANFORD UNIVERSITY'S SCHOOL OF ENGINEERING WAS ELECTED A DIRECTOR OF THIS NATURAL GAS PIPELINE COMPANY EXPANDING THE BOARD TO SEVEN MEMBERS STORAGE EQUITIES INCORPORATED GLENDALE CALIFORNIA SAID IT PLANS TO MAKE A PROPOSAL TO PUBLIC STORAGE PROPERTIES THE EIGHTH INCORPORATED TO ACQUIRE THE COMPANY FOR CASH OR STOCK TERMS WEREN'T DISCLOSED STORAGE EQUITIES A REAL ESTATE INVESTMENT PARTNERSHIP SAID PUBLIC STORAGE PROPERTIES THE EIGHTH SHAREHOLDERS WOULD RECEIVE CASH OR COMMON STOCK BASED ON THE APPRAISED VALUE OF THE COMPANY'S PROPERTIES PUBLIC STORAGE PROPERTIES THE EIGHTH A GLENDALE REAL ESTATE INVESTMENT TRUST THAT OWNS MINIWAREHOUSE SELF STORAGE FACILITIES SAID THAT THERE IS NO AGREEMENT YET AND THAT ANY MERGER WOULD BE CONDITIONED ON VARIOUS APPROVALS AND APPRAISALS HARVEY LENKIN PRESIDENT OF BOTH STORAGE EQUITIES AND PUBLIC STORAGE PROPERTIES THE EIGHTH SAID PUBLIC STORAGE PROPERTIES THE EIGHTH QUOTE AWAITS WITH GREAT INTEREST NUMBERS OF THE OFFER QUOTE HE DECLINED TO COMMENT ON WHY STORAGE EQUITIES WANTS TO ACQUIRE THE COMPANY STORAGE EQUITIES OWNS OR HAS INTERESTS IN TWO HUNDRED EIGHTY SELF STORAGE PROPERTIES GANDALF TECHNOLOGIES INCORPORATED SAID IT WILL PERMANENTLY LAY OFF SIXTY PEOPLE AT ITS CHERRY HILL N. J. DIVISION BECAUSE OF AN EXPECTED LOSS IN ITS THIRD QUARTER ENDED DECEMBER TWENTY SIXTH GANDALF CHIEF EXECUTIVE BRIAN HEDGES SAID THE RESULTS WHICH ARE TO BE REPORTED IN FEBRUARY ARE QUOTE WELL BELOW EXPECTATIONS QUOTE HE SAID GANDALF EXPECTS TO REPORT A SIGNIFICANT LOSS ON REVENUE OF THIRTY MILLION DOLLARS IN THE FIRST SIX MONTHS OF FISCAL NINETEEN NINETY FOUR GANDALF HAD A NET LOSS OF FOUR POINT THREE MILLION DOLLARS ON REVENUE OF SIXTY NINE POINT TWO MILLION DOLLARS THE OTTAWA TELECOMMUNICATIONS EQUIPMENT CONCERN ALSO SAID THAT SEVERAL OFFICERS HAD RESIGNED FROM THE COMPANY INCLUDING JAMES HAHN FORMER VICE PRESIDENT OF MARKETING JOHN WANDELL FORMER PRESIDENT OF GANDALF CANADA LIMITED AND MICHAEL MCGRAIL FORMER PRESIDENT OF GANDALF INTERNATIONAL LIMITED GANDALF HAD ONE THOUSAND THREE HUNDRED SIXTY SIX EMPLOYEES AS OF LAST MARCH THIRTY FIRST ALEXANDER AND ALEXANDER INCORPORATED NEW YORK WAS FOUND LIABLE FOR BREACH OF CONTRACT RESULTING IN A NINE POINT NINE MILLION DOLLAR JUDGMENT IN A LAWSUIT BROUGHT AGAINST IT BY PREFERRED EMPLOYERS GROUP INCORPORATED IN ITS CIVIL SUIT IN U. S. DISTRICT COURT IN BALTIMORE PREFERRED ALLEGED THAT ALEXANDER AND ALEXANDER USURPED ITS PLAN TO SELL A WORKERS COMPENSATION PROGRAM AIMED AT FAST FOOD RESTAURANT CHAINS PREFERRED A MIAMI BASED INSURANCE COMPANY SAID IT HAD ENTERED AN AGREEMENT WITH ALEXANDER TO IMPLEMENT ITS PROGRAM FOR BURGER KING AND OTHER FRANCHISES ALEXANDER QUOTE OBTAINED PROPERTY AND CASUALTY INSURANCE PACKAGES BUT INSTEAD OF GIVING IT TO PREFERRED IT GAVE IT TO ONE OF ITS OWN SUBSIDIARIES QUOTE PREFERRED'S ATTORNEYS SAID FUTHERMORE IT BEGAN A SCHEME TO PIRATE THE PREFERRED PROGRAM AND MARKET IT A SPOKESWOMAN FOR ALEXANDER AND ALEXANDER THE U. S. UNIT OF INSURANCE BROKERAGE FIRM ALEXANDER AND ALEXANDER SERVICES INCORPORATED SAID THE UNIT WAS DISAPPOINTED WITH THE JURY'S DECISION AND PLANNED TO APPEAL A SPOKESWOMAN ADDED THAT THE DECISION WOULD HAVE NO MATERIAL IMPACT ON THE FINANCES OF THE FIRM TSX CORPORATION SAID IT REACHED AGREEMENT WITH ITS LONG TERM LENDER SUBJECT TO CONDITIONS TO RESTRUCTURE ITS EXISTING DEBT TERMS CALL FOR THE EL PASO TEXAS ELECTRONICS CONCERN TO PAY ITS LENDER TEN MILLION DOLLARS IN CASH AND ISSUE SIX POINT NINE MILLION DOLLARS IN PAR VALUE NON CONVERTIBLE PREFERRED STOCK THE PREFERRED WILL BE REDEEMABLE ON THE NINTH ANNIVERSARY OF ITS ISSUE AND WON'T PAY OR ACCRUE DIVIDENDS TSX ALSO WILL ISSUE ABOUT EIGHTY THOUSAND SHARES OF COMMON STOCK TO THE LENDER TO FUND THE TEN MILLION DOLLAR PAYMENT TSX SAID IT REACHED AGREEMENT FOR A TEN MILLION DOLLAR BRIDGE LOAN SUBJECT TO CERTAIN CONDITIONS FROM MAGTEN ASSET MANAGEMENT CORPORATION THE LOAN BEARS INTEREST AT A VARIABLE RATE PAYABLE QUARTERLY AND MATURING ONE YEAR FROM DATE OF ISSUE THE MAGTEN CLIENT ACCOUNTS PROVIDING THE LOAN WILL RECEIVE THREE HUNDRED THOUSAND SHARES OF COMMON STOCK AND THREE HUNDRED THOUSAND SERIES A WARRANTS SUBJECT TO VARIOUS APPROVALS TSX SAID IT EXPECTS TO COMPLETE ALL TRANSACTIONS BY MID FEBRUARY HAROLD C. TAMBURRO CHIEF FINANCIAL OFFICER SAID THE RESTRUCTURING WILL IMMEDIATELY REDUCE INTEREST COSTS BY ONE MILLION DOLLARS A YEAR AND REDUCE CASH OUTLAYS BY FOUR POINT FIVE MILLION DOLLARS A YEAR THERE HAS BEEN MUCH EMPHASIS RECENTLY ON QUOTE SCHINDLER'S LIST QUOTE THE MOVIE BY STEVEN SPIELBERG ON DECEMBER TWENTY SECOND YOUR DOROTHY RABINOWITZ WROTE A LEISURE AND ARTS PIECE ABOUT THE ITALIAN ARMY'S REFUSAL TO SHIP JEWS TO HITLER'S EXTERMINATION CAMPS ALL THIS PROMPTED ME TO RE READ THE MAN WITH THE MIRACULOUS HANDS BY JOSEPH KESSEL NINETEEN SIXTY ONE FARRAR STRAUS AND CUDAHY IT IS THE FANTASTIC STORY OF FELIX KERSTEN HIMMLER'S PRIVATE DOCTOR WHOSE INFLUENCE SAVED THE LIVES OF THOUSANDS OF VICTIMS MARKED FOR EXTERMINATING BY THE NAZIS KERSTEN WAS SO ABLE TO CURE HIMMLER'S PAINS THAT HE COULD INFLUENCE THE REICHSFUEHRER TO SAVE MANY LIVES ALMOST DAILY DURING THE WAR HIMMLER ONCE SAID WITH EVERY ONE OF HIS MESSAGES DOCTOR KERSTEN DEPRIVES ME OF A LIFE HE STOPPED THE DEPORTATION OF THE ENTIRE POPULATION OF HOLLAND TO POLAND IN NINETEEN FORTY ONE BY CONVINCING HIMMLER THAT STRESS OF OVERWORK WAS RUINING HIS HEALTH AND PREVENTING KERSTEN FROM CURING HIS PAIN WITH HIS CURING HANDS HE CONVINCED HIS PATIENT TO DIVERT A TRAINLOAD OF TWO THOUSAND SEVEN HUNDRED CONDEMNED JEWS TO SWITZERLAND AND FREEDOM PERHAPS HIS GREATEST ACCOMPLISHMENT OCCURRED NEAR THE END OF THE WAR WHEN HIMMLER WAS PREPARING TO OBEY ONE OF HITLER'S MOST HEINOUS ORDERS TO DYNAMITE THE CONCENTRATION CAMPS WHEN THE ALLIED ARMIES CAME WITHIN A FEW MILES KERSTEN CONTINUED HIS DAILY MESSAGES WHILE WORKING TO OVERCOME HIMMLER'S BLIND ALLEGIANCE TO HITLER CONVINCING HIM OF HIS GREATER ROLE IN HISTORY THAN THE INSANE HITLER AND HIMMLER FINALLY CONSENTED TO COUNTERMAND THE ORDER AND EIGHT HUNDRED THOUSAND LIVES WERE SPARED RABBI ALEXANDER SCHINDLER'S JANUARY FOURTH LETTER TO THE EDITOR RIGHTLY EXTOLS THE EXTRAORDINARY EFFORT MADE BY THE DANISH PEOPLE IN SAVING THE EIGHT THOUSAND DANISH JEWS FROM EXTERMINATION IT IS IMPORTANT TO REMEMBER THAT ANOTHER EUROPEAN COUNTRY UNDER GERMAN CONTROL BULGARIA WAS ABLE TO SAVE ALL ITS JEWISH CITIZENS IN NINETEEN THIRTY NINE THERE WERE SLIGHTLY MORE THAN FORTY THOUSAND JEWS IN BULGARIA AT THE END OF THE WAR THERE WERE CLOSE TO FIFTY THOUSAND IT IS THE ONLY EUROPEAN COUNTRY EXCEPT FOR SWITZERLAND WHERE THE JEWISH POPULATION ACTUALLY GREW DURING THE WAR SOMEHOW THIS REMARKABLE EVENT HAS ESCAPED THE ATTENTION IT DESERVES WITHOUT DIMINISHING THE ASTOUNDING AND HEROIC DEED OF THE DANISH PEOPLE ONE SHOULD NOT FORGET THE EQUALLY MOMENTOUS DEED OF THE BULGARIAN PEOPLE I FOR ONE OWE THEM MY LIFE MEDICAL CARE AMERICA INCORPORATED SIGNED A DEFINITIVE AGREEMENT TO SELL ITS STRUGGLING HOME INFUSION UNIT TO CAREMARK INTERNATIONAL INCORPORATED FOR ONE HUNDRED SEVENTY FIVE MILLION DOLLARS SAID JONATHAN BOND MEDICAL CARE'S EXECUTIVE VICE PRESIDENT MEDICAL CARE OPENED ITS BOOKS TO ACQUISITION MINDED COMPETITORS LAST MONTH AMID SHAREHOLDERS' PROTESTS OVER ITS REJECTION OF AN EARLIER TAKEOVER BID MR. BOND SAID THAT IN RESPONSE TO THOSE CONCERNS AND TO ENHANCE SHAREHOLDER VALUE MEDICAL CARE WOULD USE THE PROCEEDS OF THE UNIT'S SALE ALONG WITH EXISTING RESERVES TO BUY AS MANY AS SEVEN MILLION OF ITS THIRTY SIX POINT SIX MILLION COMMON SHARES OUTSTANDING FOR BETWEEN TWENTY SIX DOLLARS AND TWENTY NINE DOLLARS A SHARE IN A MODIFIED QUOTE DUTCH AUCTION QUOTE IN A DUTCH AUCTION THE BUYER SETS A PRICE RANGE AND HOLDERS GIVE A PRICE AT WHICH THEY ARE WILLING TO SELL SHARES THE BUYER THEN PICKS A PRICE AND BUYS SHARES AT THAT PRICE FROM HOLDERS WHO OFFERED TO SELL AT THAT PRICE OR LOWER MR. BOND SAID THAT THE BOARDS OF EACH COMPANY THE TWO LARGEST COMPETITORS IN THE FOUR BILLION DOLLAR HOME INFUSION INDUSTRY HAD APPROVED THE TRANSACTION AND THAT MEDICAL CARE HOPES TO COMPLETE THE SALE IN EARLY APRIL BUT THE AGREEMENT WITH CAREMARK NORTHBROOK ILLINOIS WON'T GUARANTEE THAT MEDICAL CARE'S RECENT TROUBLES ARE ENDED THE FEDERAL TRADE COMMISSION MUST STILL EXAMINE THE PROPOSED TRANSACTION FOR POSSIBLE ANTITRUST IMPLICATIONS AND MEDICAL CARE'S BOARD'S STOCK BUYBACK PLAN STILL MUST SATISFY PREVIOUSLY DISGRUNTLED SHAREHOLDERS MEDICAL CARE'S BOARD VOTED UNANIMOUSLY TO SELL ITS INFUSION UNIT DURING A MEETING HERE LAST THURSDAY ACCORDING TO PEOPLE CLOSE TO THE SITUATION IT CHOSE CAREMARK'S ALL CASH BID OVER ONE SUBMITTED BY W. R. GRACE AND COMPANY THE BOCA RATON FLORIDA SPECIALTY CHEMICAL AND HEALTHCARE SERVICES CONCERN DETAILS OF GRACE'S BID COULDN'T BE LEARNED AT THURSDAY'S MEETING THE BOARD ALSO REJECTED BIDS FOR THE ENTIRE COMPANY FROM AMERICAN MEDICAL HOLDINGS INCORPORATED A DALLAS BASED HOSPITAL CONCERN AND SURGICAL CARE AFFILIATES INCORPORATED NASHVILLE TENNESSEE OPERATOR OF OUTPATIENT SURGERY CENTERS WHICH OFFERED TO ACQUIRE MEDICAL CARE FOR ALMOST ONE BILLION DOLLARS IN STOCK LAST OCTOBER MEDICAL CARE'S REBUFF OF SURGICAL CARE'S EARLIER OFFER TRIGGERED A REVOLT BY MAJOR SHAREHOLDERS LED BY MEMBERS OF THE BASS FAMILY OF FORT WORTH TEXAS IN DECEMBER THEIR LOBBYING FORCED THE COMPANY TO OPEN ITS BOOKS TO COMPETITORS INTERESTED IN ACQUIRING PART OR ALL OF MEDICAL CARE THE COMBINATION OF THE TWO INFUSION NETWORKS WOULD CREATE BROAD COST CUTTING OPPORTUNITIES FOR CAREMARK A PRIMARY MEDICAL CARE COMPETITOR IN MANY MARKETS IT ALSO WOULD FREE MEDICAL CARE FROM A LINE OF BUSINESS THAT IT HASN'T BEEN ABLE TO OPERATE SUCCESSFULLY THE ONE HUNDRED SEVENTY FIVE MILLION DOLLARS SELLING PRICE IS FAR BELOW THE PROJECTIONS OF SOME INDUSTRY ANALYSTS WHO HAD ESTIMATED THE BUSINESS COULD FETCH AS MUCH AS TWO HUNDRED FIFTY MILLION DOLLARS BUT IN RECENT MONTHS THE INFUSION INDUSTRY HAS FACED INTENSE COST CUTTING PRESSURES FROM MANAGED CARE PROVIDERS AND INSURERS AND MEDICAL CARE'S INFUSION BUSINESS WHICH IT ACQUIRED IN LATE NINETEEN NINETY TWO HAS BEEN PLAGUED BY A HIGH COST STRUCTURE AND ITS FAILURE TO MARKET EFFECTIVELY TO MANAGED CARE PROVIDERS MEDICAL CARE IS THE NATION'S LARGEST OPERATOR OF OUTPATIENT SURGERY CENTERS AND BEHIND CAREMARK THE SECOND LARGEST PROVIDER OF HOME INFUSION SERVICES WHICH ALLOW PATIENTS TO GIVE THEMSELVES INTRAVENOUS MEDICATIONS AT HOME MR. BOND SAID THAT THE HOME INFUSION BUSINESS ACCOUNTED FOR ABOUT THIRTY FIVE PERCENT OF MEDICAL CARE'S REVENUE FOR THE FIRST NINE MONTHS OF NINETEEN NINETY THREE BUT ONLY ABOUT SEVEN PERCENT OF ITS OPERATING PROFIT IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE CAREMARK STOCK CLOSED AT NINETEEN DOLLARS AND FIFTY CENTS UP FIFTY CENTS MEDICAL CARE STOCK ALSO LISTED ON THE BIG BOARD FELL TWELVE POINT FIVE CENTS TO TWENTY FOUR DOLLARS ORIGINALLY SURGICAL CARE OFFERED TO TRADE ONE POINT THREE FIVE SHARES OF ITS COMMON STOCK FOR EACH MEDICAL CARE SHARE IN ITS LATEST BID SURGICAL CARE IS SAID TO HAVE INCREASED THE NUMBER OF SHARES IT WAS OFFERING BUT NOT SUFFICIENTLY TO MAKE UP FOR RECENT DECLINES IN ITS STOCK PRICE ON FRIDAY SURGICAL CARE CLOSED AT FIFTEEN POINT THREE SEVEN FIVE DOLLARS OFF TWELVE POINT FIVE CENTS IN COMPOSITE TRADING ON THE BIG BOARD SURGICAL CARE WAS TRADING AT ABOUT NINETEEN DOLLARS WHEN ITS OCTOBER BID WAS MADE A SURGICAL CARE SPOKESMAN DECLINED TO COMMENT ON THE SITUATION PEOPLE CLOSE TO MEDICAL CARE'S RECENT DELIBERATIONS SAID THAT AMERICAN MEDICAL'S BID WASN'T SUFFICIENTLY LARGE TO RATE SERIOUS CONSIDERATION BY THE BOARD SHRINKING PROFIT MARGINS IN THE HOME INFUSION INDUSTRY LED CAREMARK SPUN OFF BY BAXTER INTERNATIONAL IN NINETEEN NINETY TWO TO DIVERSIFY BROADLY INTO OTHER AREAS OF BUSINESS IT EXPANDED ITS PRESCRIPTION DRUG SERVICES AND ACQUIRED ADDITIONAL PHYSICIAN PRACTICES AND FREE STANDING DIALYSIS CENTERS STILL HOME CARE WHICH INCLUDES INFUSION REPRESENTS ABOUT TWENTY FIVE PERCENT OF CAREMARK'S BUSINESS IN NINETEEN NINETY TWO IT HAD REVENUE OF ABOUT ONE POINT FIVE BILLION DOLLARS AND SOME INDUSTRY OBSERVERS SAID THAT THE ADDITIONAL MEDICAL CARE OUTLETS COULD BE FOLDED INTO THE CAREMARK NETWORK AT A MINIMAL COST FOR THE NINE MONTHS MEDICAL CARE REPORTED A NET LOSS OF ONE HUNDRED TWELVE POINT TWO MILLION DOLLARS OR THREE DOLLARS AND SEVEN CENTS A SHARE COMPARED WITH NET INCOME OF THIRTY ONE POINT FOUR MILLION DOLLARS OR EIGHTY FOUR CENTS A SHARE THE YEAR EARLIER REVENUE INCREASED FIVE POINT FIVE PERCENT TO FOUR HUNDRED SIXTY EIGHT POINT EIGHT MILLION DOLLARS FROM FOUR HUNDRED FORTY FOUR POINT THREE MILLION DOLLARS FOR ITS NINETEEN NINETY THREE NINE MONTHS CAREMARK REPORTED A THIRTY ONE PERCENT INCREASE IN NET PROFIT TO FIFTY FIVE POINT FIVE MILLION DOLLARS FROM FORTY TWO POINT FIVE MILLION DOLLARS THE YEAR EARLIER REVENUE ROSE TWENTY THREE PERCENT TO ONE POINT THREE BILLION DOLLARS FROM ONE POINT ONE BILLION DOLLARS SMALL INVESTORS AREN'T THE ONLY CLAIMANTS WINNING BIG LEGAL BATTLES AGAINST PRUDENTIAL SECURITIES INCORPORATED A NEW YORK STOCK EXCHANGE ARBITRATION PANEL ORDERED PRUDENTIAL TO PAY A TOTAL OF THREE POINT SEVEN MILLION DOLLARS TO FIVE FORMER EXECUTIVES WHO HAD RUN PRUDENTIAL'S INSTITUTIONAL SALES AND TRADING SUBSIDIARY IN PUERTO RICO THE AWARD IS AMONG THE LARGEST WON BY EMPLOYEES IN AN ARBITRATION CASE FILED AGAINST A WALL STREET BROKERAGE FIRM THE EXECUTIVES OF PRUDENTIAL BACHE CAPITAL FUNDING PUERTO RICO INCORPORATED HAD ACCUSED THE FIRM OF WRONGFUL TERMINATION AFTER PRUDENTIAL SHUTTERED THE TRADING SUBSIDIARY IN JANUARY NINETEEN NINETY PRUDENTIAL COUNTERED THAT IT CLOSED THE UNIT FOR QUOTE BUSINESS REASONS QUOTE AFTER A TRADING POSITION LEFT THE FIRM AT RISK FOR ONE HUNDRED MILLION DOLLARS THE AWARD COMES AS THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT BRACES FOR AN ONSLAUGHT OF LEGAL CLAIMS BY INDIVIDUAL INVESTORS WHO SAY THEY WERE MISLED INTO BUYING LIMITED PARTNERSHIPS IN THE NINETEEN EIGHTIES INVESTORS ARE LOOKING TO TAP INTO A THREE HUNDRED THIRTY MILLION DOLLAR RESTITUTION FUND SET UP BY PRUDENTIAL AS PART OF AN OCTOBER SETTLEMENT WITH REGULATORS TO BOLSTER ITS OPERATIONS PRUDENTIAL ON FRIDAY NAMED ROBERT GOLDEN ITS OPERATIONS DIRECTOR TO HEAD UP THE PARTNERSHIP SETTLEMENT PROCESS ACCORDING TO AN INTERNAL MEMORANDUM PRUDENTIAL THE U. S.'S FOURTH LARGEST BROKERAGE FIRM ALREADY HAS SET ASIDE ABOUT EIGHT HUNDRED MILLION DOLLARS IN THE PAST FEW YEARS TO PAY OUT LEGAL CLAIMS BY SMALL INVESTORS MANY INVOLVING THE PARTNERSHIPS MR. GOLDEN'S APPOINTMENT APPEARS TO BE A BID TO ENSURE THAT THE FIRM HAS AN EFFECTIVE GAME PLAN FOR THE SETTLEMENTS TEAMWORK COMMUNICATION AND COOPERATION ARE ESSENTIAL AS WE DEVOTE OUR ENERGIES TO WHAT MUST BE A SUCCESSFUL ENDEAVOR HARDWICK SIMMONS PRUDENTIAL SECURITIES'S CHIEF EXECUTIVE WROTE IN THE MEMO THOUGH THE PUERTO RICAN CASE HAD NOTHING TO DO WITH PARTNERSHIPS OR INDIVIDUAL INVESTORS THE UNIT DEALT EXCLUSIVELY WITH LARGE INSTITUTIONAL CLIENTS THE AWARD STUNNED PRUDENTIAL EXECUTIVES WE THINK IT'S AN OUTRAGEOUS RESULT BASED ON THE FACTS PRUDENTIAL SAID IN A STATEMENT WE FIRED AN INDIVIDUAL IN THAT OPERATION BECAUSE OF HIS FAILURE TO DISCLOSE TERMS OF A VERY LARGE TRADE AND WE SHUT DOWN THE MERCHANT BANKING BUSINESS THERE FOR BUSINESS REASONS WE THINK WE'RE BEING PENALIZED FOR HAVING DONE THE RIGHT THING PRUDENTIAL HASN'T YET DECIDED WHETHER TO APPEAL THE CASE WHICH DRAGGED ON FOR FIFTY SIX HEARINGS WAS UNUSUAL THE PLAINTIFFS INCLUDING JOSE RODRIGUEZ PRESIDENT AND ROBERT TANNER EXECUTIVE VICE PRESIDENT AND HEAD TRADER SAID THEY WERE EMOTIONALLY AND PROFESSIONALLY HARMED BECAUSE AMONG OTHER THINGS ARMED GUARDS ORDERED EMPLOYEES OUT OF THE BUILDING WHEN PRUDENTIAL SHUT THE UNIT YOU CAN'T COME IN AND CLOSE DOWN A SHOP WITH UTTER DISREGARD FOR PEOPLE WHO INVESTED YEARS OF THEIR LIFE BEING PRODUCTIVE SAID HAROLD VICENTE A LAWYER FOR THE PLAINTIFFS IN SANTURCE PUERTO RICO QUOTE THAT'S NOT THE WAY YOU FINISH A RELATIONSHIP QUOTE IN A COUNTERCLAIM PRUDENTIAL ACCUSED MR. TANNER OF TAKING PART IN AN UNAUTHORIZED ONE HUNDRED MILLION DOLLAR OFF EXCHANGE TRADE AS PART OF THE TRANSACTION PRUDENTIAL ALLEGED MR. TANNER IMPROPERLY TOLD THE TRADE'S COUNTERPARTY PHARMACEUTICAL GIANT SCHERING PLOUGH CORPORATION THAT IT COULD PUT BACK OR CANCEL THE TRADE IF IT WISHED THAT CLAIM WAS DISMISSED BY BIG BOARD ARBITRATORS THE PUT WAS MADE IN A LETTER TO SCHERING PLOUGH IT WAS ALL MADE IN THE OPEN SAYS MR. VICENTE MR. TANNER'S LAWYER IN PAPERS FILED WITH ARBITRATORS MR. TANNER ASSERTS THAT THE TRADE WAS PROFITABLE AS A WHOLE FOR PRUDENTIAL OF THE FIVE EXECUTIVES MR. TANNER RECEIVED THE BIGGEST AWARD ONE POINT OH TWO MILLION DOLLARS PLUS NEARLY THREE HUNDRED THOUSAND DOLLARS IN COSTS AND ATTORNEY'S FEES MR. RODRIGUEZ RECEIVED ONE MILLION DOLLARS PLUS TWO HUNDRED SIXTY SIX THOUSAND DOLLARS IN COSTS AND ATTORNEY'S FEES THE OTHER PLAINTIFFS WERE WOLFRAM PIETRI A SENIOR VICE PRESIDENT INVESTMENT BANKING JOSE CIMADEVILLA AN INVESTMENT BANKING OFFICER AND GARLAND HEDGES A SENIOR VICE PRESIDENT FUNDING THE TURNING POINT IN THE EXECUTIVES' CASE CAME WHEN PLAINTIFFS' LAWYERS DISCOVERED THAT PRUDENTIAL'S STAR WITNESS A FORMER FIRM OPERATIONS MANAGER WHO NOW IS CHIEF FINANCIAL OFFICER AT KIDDER PEABODY GROUP INCORPORATED'S PUERTO RICAN UNIT WAS STILL ON PRUDENTIAL'S PAYROLL AND DIDN'T DISCLOSE IT PEOPLE FAMILIAR WITH THE CASE SAY PRUDENTIAL DECLINED TO COMMENT ON THE WITNESS CESAR GANDIAGA MR. GANDIAGA COULDN'T BE REACHED PRUDENTIAL HAD BEEN PAYING MR. GANDIAGA ABOUT TWO THOUSAND FIVE HUNDRED DOLLARS A MONTH AS A CONSULTANT TO UNWIND TRADING POSITIONS AFTER THE SUBSIDIARY WAS CLOSED WITHOUT KIDDER'S KNOWLEDGE PEOPLE FAMILIAR WITH THE MATTER SAID KIDDER DECLINED TO COMMENT BUT THE PEOPLE SAID THAT WHEN THE GENERAL ELECTRIC COMPANY UNIT FOUND OUT ABOUT MR. GANDIAGA'S ARRANGEMENT WITH PRUDENTIAL IT ORDERED AN END TO THE PAYMENTS BUYING A GREAT COMPANY WHEN ITS INDUSTRY IS ON THE ROCKS IS A TIME HONORED MONEY MAKING STRATEGY FOR LONG TERM INVESTORS THEY HAVE A CHANCE TO DO IT NOW IN SAINT JUDE MEDICAL A FEW BOLD MONEY MANAGERS AND ANALYSTS SAY SAINT JUDE IS THE COUNTRY'S LEADING MAKER OF MECHANICAL HEART VALVES IT HAS SUPERB PROFIT MARGINS RECENTLY FORTY THREE PERCENT OF SALES OVER THE YEARS IT HAS SHOWN TERRIFIC EARNINGS GROWTH OF ABOUT FORTY PERCENT A YEAR THAT HAS SLOWED TO ABOUT TEN PERCENT LATELY THE SAINT PAUL MINNESOTA COMPANY HAS A BIG HOARD OF CASH ABOUT THREE HUNDRED FIFTY MILLION DOLLARS AND NO DEBT YET INVESTORS APPARENTLY ASSUME THAT SAINT JUDE'S GLORIES ARE IN THE PAST THE STOCK SELLS FOR A MERE TWELVE TIMES THE PAST FOUR QUARTERS' EARNINGS IT CLOSED FRIDAY AT TWENTY SEVEN AND THREE QUARTERS UNCHANGED ON THE NASDAQ STOCK MARKET THAT'S QUITE A COMEDOWN FOR A STOCK THAT HAD SOARED CLOSE TO SEVEN HUNDRED PERCENT IN FOUR YEARS TO REACH A PEAK OF FIFTY FIVE AND ONE HALF TWO YEARS AGO THE FIFTY PERCENT FALL IN TWO YEARS ISN'T UNUSUAL FOR MEDICAL STOCKS MANY OF WHICH PEAKED IN JANUARY NINETEEN NINETY TWO COST CUTTING BY CORPORATIONS AND INSURANCE COMPANIES HAS BRUISED THE GROUP SO HAS PRESIDENT CLINTON'S PROPOSAL TO CHANGE THE NATION'S HEALTH CARE SYSTEM QUOTE I THINK PEOPLE ARE REALLY TERRIFIED OF ANYTHING WITH THE WORD MEDICAL IN IT QUOTE SAYS JOHN BUCKINGHAM RESEARCH DIRECTOR AT AL FRANK ASSET MANAGEMENT IN SANTA MONICA CALIFORNIA BY SCOOPING THESE STOCKS UP NOW AND SITTING ON THEM FOR THREE TO FIVE YEARS WE THINK WE'LL BE AMPLY REWARDED CHICAGO MONEY MANAGER HARRIS ASSOCIATES WHICH HAS ONE OF THE BEST STOCK PICKING RECORDS IN THE BUSINESS OVER THE PAST FIVE YEARS HAS BOUGHT THE STOCK HEAVILY THIS IS A VERY WELL RUN COMPANY WITH A SUPERB PRODUCT SAYS JOHN RAITT AN ANALYST AND PARTNER AT HARRIS THEY HAVE LOTS OF CASH AND LOTS OF FREE CASH FLOW DETRACTORS ARGUE THAT SAINT JUDE MAY HAVE BEEN A GREAT GROWTH STOCK IN THE PAST BUT THAT THE BIG GROWTH IS BEHIND IT OF TWENTY THREE ANALYSTS WHO FOLLOW THE STOCK SEVENTEEN RATE IT NEUTRAL ACCORDING TO ZACKS INVESTMENT RESEARCH ON WALL STREET NEUTRAL IS OFTEN A CODE WORD FOR SELL QUOTE THEY'VE KIND OF RUN INTO A BUZZ SAW QUOTE SAYS DAVID J. LOTHSON OF PAINEWEBBER I THINK THERE CLEARLY HAS BEEN A SLOWDOWN IN UTILIZATION OF VALVES IT'S A JUDGMENT CALL ON WHEN THE PROCEDURE NEEDS TO BE DONE WITH COST CUTTING IN VOGUE HE ANTICIPATES FEWER ELECTIVE HEART VALVE REPLACEMENTS AND IF SOME VERSION OF THE CLINTON HEALTH CARE PLAN PASSES HE THINKS THE BODIES THAT WILL CONTROL HEALTH CARE SPENDING MAY WEIGH VALVE REPLACEMENTS AGAINST OTHER HEALTH NEEDS SUCH AS MALNUTRITION AIDS AND TRAUMA CARE MOREOVER MR. LOTHSON SAYS SAINT JUDE'S TAX RATE WILL GO UP NEARLY FIVE PERCENTAGE POINTS THROUGH THE LOSS OF TAX BENEFITS FROM MANUFACTURING IN PUERTO RICO AND ONE OF ITS RIVALS CARBOMEDICS WON APPROVAL IN SEPTEMBER TO SELL HEART VALVES IN THE U. S. JOEL ZIMMERMAN OF LEHMAN BROTHERS ALSO IS NEUTRAL WE WOULD EXPECT TO SEE THE NUMBER OF PROCEDURES STABILIZE OR EVEN DECLINE IN THE U. S. HE SAYS ABROAD GROWTH RATE IS BETTER BUT THE PRICE PER VALVE ABOUT THREE THOUSAND EIGHT HUNDRED DOLLARS IN THE U. S. IS SOMETIMES LOWER ANALYSTS FRET TOO ABOUT SAINT JUDE'S STATED INTENTION TO MAKE A MAJOR ACQUISITION ANY COMPANY ACQUIRED WOULD NATURALLY BE IN THE MEDICAL FIELD WHICH ANALYSTS VIEW AS A MINE FIELD OF EXPLOSIVE UNCERTAINTIES BUT EDWARD L. MUTCH OF PIPER JAFFRAY ONE OF THE FEW BROKERAGE HOUSE BULLS ON SAINT JUDE SAYS INVESTORS HAVE LET THEIR FEARS BALLOON OUT OF PROPORTION THE WHOLE MEDICAL DEVICE SECTOR IS OVERSOLD HE SAYS I SUSPECT ONE YEAR FROM NOW WE'LL BE LOOKING BACK AND SAYING INVESTORS REALLY MADE SOME GOOD MONEY IN SAINT JUDE AND OTHER MEDICAL DEVICE STOCKS STEPHEN L. WILSON CHIEF FINANCIAL OFFICER AT SAINT JUDE SAYS THE WORLD WIDE MARKET FOR HEART VALUES ABOUT FOUR HUNDRED NINETY MILLION DOLLARS ANNUALLY IS GROWING PERHAPS EIGHT PERCENT A YEAR FIVE PERCENT IN UNITS AND THREE PERCENT IN PRICE INCREASES QUOTE CLEARLY IN THE U. S. THERE IS PRESSURE ON BOTH THOSE NUMBERS QUOTE HE SAYS THE COMPANY HOPES TO SUPPLEMENT ITS HIGHLY REGARDED MECHANICAL VALVES WITH AN IMPROVED ANIMAL TISSUE VALVE SOON BUT IT IS ALSO COUNTING ON AN ACQUISITION PROBABLY THIS YEAR TO REKINDLE GROWTH WE WANT TO TAKE ALL THE CASH GENERATED BY THE HEART VALVE BUSINESS AND PUT IT TO A BETTER USE THAN INVESTING IN TWO YEAR MUNICIPAL BONDS SAYS MR. WILSON HEALTH CARE HAS BEEN SO BADLY MALIGNED IT IS AN ABSOLUTELY MARVELOUS INDUSTRY ARNOLD DOUVILLE A PORTFOLIO MANAGER AT MUNDER CAPITAL MANAGEMENT IN BIRMINGHAM MICHIGAN THINKS SAINT JUDE MIGHT ACQUIRE THE MEDICAL DEVICE BUSINESS OF ELI LILLY MR. WILSON SAYS THERE WOULD CERTAINLY BE A LEVEL OF INTEREST IN THE LILLY UNITS BUT HE HAS HAD NO INDICATION THAT THOSE BUSINESSES ARE FOR SALE AS E. P. A.'S SUPERFUND MANAGER FROM NINETEEN EIGHTY FIVE TO NINETEEN EIGHTY NINE I READ TIM NOAH'S DECEMBER SECOND POLITICS AND POLICY ARTICLE WITH INTEREST HE DESCRIBES WELL THE COMPETING INTERESTS ATTEMPTING TO FIX SUPERFUND ALL THE OLD FAVORITE ISSUES ARE THERE QUOTE HOW CLEAN IS CLEAN QUOTE EXCESSIVE COSTS RETROACTIVITY INSURANCE AND LIABILITY RATHER THAN DEBATE ALL THIS FINE TUNING OF AN ILL CONCEIVED STATUTE LET ME PROPOSE A BETTER APPROACH TURN SUPERFUND OVER TO THE STATES EVERY DAY THE STATES ARE PROVING THEY CAN CLEAN UP SITES FASTER AND AT LOWER COST THAN THE FEDERAL SUPERFUND PROGRAM THE TYPICAL FEDERAL CLEANUP TAKES TEN YEARS AND COSTS ABOUT THIRTY MILLION DOLLARS BY CONTRAST MINNESOTA CLEANUPS TAKE TWO TO THREE YEARS AND AVERAGE LESS THAN FIVE MILLION DOLLARS WISCONSIN ALREADY HAS CLEANED UP TWO HUNDRED TWENTY SEVEN SITES MORE THAN THE ENTIRE FEDERAL PROGRAM NEW YORK HAS COMPLETED ABOUT ONE HUNDRED FORTY SITES THE REASONS ARE INCREASINGLY APPARENT THE STATES ARE MUCH CLOSER TO THE SITE PROBLEMS AND LAND USE ISSUES THE FEDERAL PROGRAM IS BUILT ON NATIONAL CONSISTENCY IN SITE REMEDIES WHICH IGNORES THE FACT THAT EACH SITE IS A UNIQUE LOCAL PROBLEM SITES DIFFER WIDELY IN TERMS OF POLLUTANTS INVOLVED HYDROLOGY AND GEOLOGY SITE AREA ACRES TO SQUARE MILES AND LAND USE PATTERNS ANOTHER COMPLICATION IS THE COTTAGE INDUSTRY FINANCED BY TAXPAYERS TO MICROMANAGE SUPERFUND E. P. A. FUNDS ALMOST ONE HUNDRED PEOPLE IN THE INSPECTOR GENERAL'S OFFICE TO FIND FRAUD WASTE AND ABUSE WHICH OF COURSE THEY ALWAYS DO CONGRESS HAS TASKED AN ALPHABET SOUP OF AGENCIES TO FINE TUNE EVERY ASPECT OF SUPERFUND OPERATING AWAY FROM THE GLARE OF THIS NATIONAL SPOTLIGHT HAS ALLOWED THE STATES TO QUIETLY CLEAN UP THEIR SITES E. P. A. ON THE OTHER HAND SPENDS MOST OF ITS TIME DEFENDING THE PROGRAM BEFORE REPRESENTATIVE DINGELL SENATOR LAUTENBERG AND OTHERS E. P. A. SHOULD SET MINIMUM STANDARDS FOR STATE PROGRAMS BUT WITHOUT DEMANDING EXACT CONSISTENCY AND SHOULD MAINTAIN ITS LEAD IN CLEANING UP FEDERAL FACILITIES OTHERWISE THE STATES SHOULD TAKE OVER CRYSTAL OIL COMPANY SAID SHAREHOLDERS APPROVED AN AMENDMENT TO THE TERMS OF ITS SERIES A CONVERTIBLE VOTING PREFERRED STOCK THE COMPANY SAID THE AMENDMENT INCREASES THE CONVERSION RATE ON THE PREFERRED STOCK TO ZERO POINT ZERO ZERO THREE ONE COMMON SHARE FOR EACH PREFERRED FROM ZERO POINT ZERO ZERO TWO COMMON SHARE FOR EACH PREFERRED THE AMENDMENT ALSO REQUIRES CRYSTAL TO REDEEM FOR SIX CENTS A SHARE ALL THE SERIES A PREFERRED SHARES OUTSTANDING AS OF THE CLOSE OF BUSINESS ON THE FIRST BUSINESS DAY FOLLOWING THE NINETIETH DAY AFTER THE EFFECTIVE DATE OF AMENDMENT FORD MOTOR COMPANY IS SHAKING UP ITS MARKETING SALES AND CUSTOMER SERVICE OPERATIONS BY NAMING A NEW HEAD TO ITS LINCOLN MERCURY DIVISION AND CREATING A NEW VICE PRESIDENCY TO OVERSEE ITS CUSTOMER SATISFACTION UNIT LEE MISKOWSKI SIXTY ONE YEARS OLD SAID HE IS RETIRING AS VICE PRESIDENT AND GENERAL MANAGER OF FORD'S LINCOLN MERCURY DIVISION ON APRIL FIRST HIS SUCCESSOR KEITH MAGEE IS FACED WITH THE CHALLENGE OF MAKING THE DIVISION MORE ATTRACTIVE TO YOUNGER BUYERS STRENGTHENING MERCURY'S BRAND IDENTITY AND REGAINING LINCOLN'S PRESTIGE AS A LUXURY MARQUE MR. MAGEE FORTY SEVEN IS VICE PRESIDENT OF INTERNATIONAL FINANCING OPERATIONS AT FORD MOTOR CREDIT COMPANY HE ASSUMES HIS DUTIES ON FEBRUARY FIRST WHEN MR. MISKOWSKI BEGINS A SPECIAL ASSIGNMENT FORD ALSO NAMED TOM WAGNER FORMERLY VICE PRESIDENT AND GENERAL MANAGER OF FORD CUSTOMER SERVICE TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF CUSTOMER COMMUNICATION AND SATISFACTION HE WILL BE RESPONSIBLE FOR THE FORD CUSTOMER SERVICE DIVISION MARKETING AND SALES OPERATIONS SYSTEMS AND COMMUNICATIONS AND MARKETING RESEARCH RONALD E. GOLDSBERRY FIFTY ONE GENERAL SALES AND MARKETING MANAGER OF FORD CUSTOMER SERVICE DIVISION REPLACES MR. WAGNER AS VICE PRESIDENT AND GENERAL MANAGER OF THE CUSTOMER SERVICE DIVISION QUOTE THIS NEW POSITION RECOGNIZES THAT SATISFYING ITS CUSTOMERS IS FORD'S NUMBER ONE OBJECTIVE QUOTE SAID ALEXANDER J. TROTMAN FORD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE PURSUIT OF TOTALLY SATISFIED CUSTOMERS PERMEATES VIRTUALLY EVERY ASPECT OF OUR BUSINESS AND WE'RE SEEKING TO BRING EVEN MORE FOCUS TO OUR EFFORTS MR. WAGNER FIFTY FIVE WILL REPORT TO ROBERT REWEY WHO CONTINUES AS FORD'S GROUP VICE PRESIDENT FOR MARKETING AND SALES OPERATIONS IN OTHER CHANGES BASIL COUGHLAN FIFTY THREE RETIRES AS VICE PRESIDENT OF NORTH AMERICAN MARKETING PLANS AND OPERATIONS TO PURSUE PERSONAL INTERESTS HE IS SUCCEEDED BY JAMES G. O'CONNOR FIFTY FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FORD OF CANADA SUCCEEDING MR. O'CONNOR IS MARK W. HUTCHINS FORTY EIGHT FORMERLY FORD'S EXECUTIVE DIRECTOR OF MARKETING STRATEGIES CLEAR CHANNEL COMMUNICATIONS SAN ANTONIO TEXAS SAID IT CLOSED THE PREVIOUSLY REPORTED PURCHASE OF AN OKLAHOMA CITY RADIO STATION KEBC F. M. FOR SEVEN POINT FIVE MILLION DOLLARS THE BROADCASTING CONCERN ALSO OWNS TWO OTHER RADIO STATIONS IN THAT MARKET KTOK A. M. AND KJYO F. M. LIBERTE INVESTORS DALLAS HAS VOTED TO APPROVE THE COMPANY'S PLAN OF CHAPTER ELEVEN REORGANIZATION PENDING CONFIRMATION ON WEDNESDAY BY A BANKRUPTCY COURT JUDGE LIBERTE FORMERLY KNOWN AS LOMAS AND NETTLETON MORTGAGE INVESTORS FILED FOR CHAPTER ELEVEN PROTECTION FROM ITS CREDITORS IN OCTOBER CAPPING TWO YEARS OF TALKS WITH ITS DEBT HOLDERS RENT WAY INCORPORATED ERIE PENNSYLVANIA SAID IT OPENED TWO STORES IN ROCHESTER N. Y. BRINGING THE NUMBER OF STORES IN OPERATION TO TWENTY TWO RENTWAY RENTS OFTEN WITH AN OPTION TO BUY HOUSEHOLD PRODUCTS SUCH AS HOME ENTERTAINMENT EQUIPMENT MAJOR APPLIANCES AND FURNITURE NOVA CORPORATION OF ALBERTA SAID IT HAS COMPLETED A SERIES OF TRANSACTIONS THAT WILL RESULT IN IT OWNING ABOUT A TWENTY FOUR PERCENT INTEREST OR ABOUT FORTY SEVEN MILLION COMMON SHARES IN METHANEX CORPORATION MAKING IT THE LARGEST SINGLE SHAREHOLDER THE SHARES WERE ACQUIRED FROM METHANEX IN EXCHANGE FOR NOVA'S METHANOL ASSETS AND PURCHASED FROM A HOLDING OF FLETCHER CHALLENGE LIMITED ADVACARE INCORPORATED DALLAS RECEIVED CONTRACTS FROM FOUR HEALTH CARE PROVIDERS THAT COULD PROVIDE IT WITH AN ESTIMATED SEVEN POINT FIVE MILLION DOLLARS ANNUALLY PROVIDERS ARE LMC LABORATORIES LAS VEGAS HOME OFFICE REFERENCE LABORATORY LEXENA KANSAS IRVING ANESTHESIA IRVING TEXAS AND NORTHEAST PATHOLOGY HOUSTON THE COMPANY ALSO SAID IT ENTERED INTO AN AGREEMENT WITH THE VETERANS DEPARTMENT TO ENHANCE THE DEPARTMENT'S HEALTH CARE COST RECOVERY SERVICES ON A NATIONAL BASIS THE NEW YORK STOCK EXCHANGE ANNOUNCED THREE NEW LISTINGS INCLUDING TWO INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED FOUR NEW LISTINGS INCLUDING THREE INITIAL OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS THE BIG BOARD BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS G. T. GLOBAL DEVELOPING MARKETS FUND INCORPORATED SAN FRANCISCO A CLOSED END FUND UNDER GTD AND J. P. REALTY INCORPORATED SALT LAKE CITY A REAL ESTATE INVESTMENT TRUST JPR THE BIG BOARD ALSO BEGAN TRADING OSMONICS INCORPORATED MINNETONKA MINNESOTA A MAKER OF TECHNOLOGY EQUIPMENT OSM WHICH PREVIOUSLY TRADED ON THE NASDAQ SYSTEM THE NASDAQ NATIONAL MARKET BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS FIDELITY FEDERAL SAVINGS BANK OF FLORIDA WEST PALM BEACH FLORIDA A CHARTERED SAVINGS BANK FFFL CRESCENT AIRWAYS CORPORATION LAWRENCEVILLE GEORGIA A PROVIDER OF HELICOPTER CONTRACT SERVICES AND AIR CHARTER SERVICES CRAR AND WARRENTS UNDER CRARW AND WESTERFED FINANCIAL CORPORATION MISSOULA MONTANA A CHARTERED SAVINGS BANK WSTR THE NASDAQ ALSO BEGAN TRADING NOBILITY HOMES INCORPORATED OCALA FLORIDA A HOUSING PRODUCER WHICH PREVIOUSLY TRADED ON THE NASDAQ SMALL CAP MARKET THE AMEX BEGAN TRADING COLONIAL DATA TECHNOLOGIES CORPORATION NEW MILFORD CONNECTICUT A SUPPLIER OF CALLER IDENTIFICATION DISPLAYS C. D. T. THE COMPANY PREVIOUSLY TRADED ON THE EMERGING COMPANY MARKETPLACE THE AMEX ALSO LISTED SERIES A COMMON STOCK OF FRANKLIN REAL ESTATE INCOME FUND UNDER FIN FRANKLIN ADVANTAGE REAL ESTATE INCOME FUND FAD AND FRANKLIN SELECT REAL ESTATE INCOME FUND FSN EACH FUND IS A REAL ESTATE INVESTMENT TRUST THE AMEX LISTED A SECOND OFFERING OF PAINEWEBBER GROUP INCORPORATED WARRANTS ON THE AMEX HONG KONG THIRTY INDEX AND AMEX'S EMERGING COMPANY MARKETPLACE BEGAN TRADING PYROCAP INTERNATIONAL CORPORATION SPRINGFIELD VIRGINIA A CHEMICAL MANUFACTURER PYR.EC CLASS A WARRANTS UNDER PYR.WS.A.EC CLASS B. WARRANTS UNDER PYR.WS.B.EC AND CLASS C. WARRANTS PYR.WS.C.EC THE COMPANY PREVIOUSLY TRADED OVER THE COUNTER THE CHICAGO BOARD OPTIONS EXCHANGE SAID IT WILL BEGIN TRADING OPTIONS ON THE NASDAQ ONE HUNDRED INDEX ON JANUARY TWENTY EIGHTH THE C. B. O. E. ALSO BEGAN TRADING OPTIONS ON THE AMERICAN DEPOSITORY RECEIPTS OF SHANGHAI PETROCHEMICAL COMPANY LIMITED THE CORNER STORE A SOFTWARE RETAILER BASED IN THE ROLLING HILLS OF LITCHFIELD CONNECTICUT ISN'T ON A CORNER NOR IS IT REALLY A STORE IT'S A CYBERSPACE STORE LOCATED IN THE ELECTRONIC UNIVERSE OF COMPUTER ON LINE SERVICES BY SPECIALIZING IN SOFTWARE PRODUCTS THAT TRADITIONAL RETAILERS HESITATED TO STOCK AND BY SELLING THEM THROUGH A MEDIUM THE RETAILERS HAD OVERLOOKED THE CORNER STORE AND ANOTHER COMPANY INDELIBLE BLUE INCORPORATED OF RALEIGH N. C. HAVE MADE MILLIONS OF DOLLARS COMPUTER INDUSTRY ANALYSTS SAY THE COMPANIES' FOUNDERS ARE AT THE FOREFRONT OF CHANGES THAT WILL EVENTUALLY REVOLUTIONIZE THE WAY SOFTWARE IS SOLD QUOTE OUR VIEW IS THAT OVER TIME YOU WILL SEE MANY MORE COMMERCIAL TRANSACTIONS OCCUR ON LINE QUOTE SAYS WILLIAM BLUESTEIN A RESEARCH DIRECTOR AT FORRESTER RESEARCH INCORPORATED A COMPUTER CONSULTING CONCERN BASED IN CAMBRIDGE MASSACHUSETTS AND WE FEEL THAT WILL HAPPEN FIRST WITH SOFTWARE BECAUSE A LOT OF SOFTWARE USERS ARE ON LINE THESE ARE FOLKS WHO ALREADY LIVE IN A DIGITAL WORLD PAOLO PIGNATELLI OWNER OF THE CORNER STORE AND KATHERINE ANSARDI AND BUCK BOHAC CO OWNERS OF INDELIBLE BLUE BEGAN THEIR VENTURES BECAUSE OF THEIR FAMILIARITY WITH THE NEEDS OF THE INHABITANTS OF CYBERSPACE A TERM COMPUTER BUFFS USE TO DESCRIBE THE ELECTRONIC REALM OF ON LINE COMPUTING BOTH COMPANIES SPECIALIZE IN SELLING O. S. SLASH TWO A COMPUTER SOFTWARE SYSTEM DESIGNED BY INTERNATIONAL BUSINESS MACHINES CORPORATION AND O. S. SLASH TWO APPLICATIONS DESIGNED BY OTHERS O. S. SLASH TWO FIRST OFFERED IN NINETEEN EIGHTY SEVEN AND REINTRODUCED LAST YEAR IN A SUBSTANTIALLY REVISED VERSION IS I. B. M.'S CHALLENGE TO THE MARKET DOMINANCE OF MICROSOFT CORPORATION'S WINDOWS OPERATING SYSTEM OPERATING SYSTEMS CONTROL COMPUTERS' BASIC HOUSEKEEPING FUNCTIONS AND OFTEN DETERMINE HOW OTHER SOFTWARE PROGRAMS LOOK AND FEEL TO THE USER LONG DISMISSED AS AN INFERIOR OPERATING SYSTEM O. S. SLASH TWO HAS HAD STRONG SALES OVER THE LAST YEAR ALTHOUGH STILL MUCH LESS POPULAR THAN WINDOWS AMONG AVERAGE COMPUTER USERS IT IS OFTEN THE FIRST CHOICE OF SOFTWARE DEVELOPERS MATHEMATICIANS TECHIES AND OTHERS WHO DESIRE AN OPERATING SYSTEM MORE POWERFUL THAN WINDOWS MR. BOHAC A GRADUATE STUDENT IN PHYSICAL CHEMISTRY AND AN O. S. SLASH TWO USER HIMSELF WAS COMMUNICATING ON THE INTERNET AND PRODIGY A POPULAR ON LINE SERVICE TWO YEARS AGO WHEN HE DISCOVERED THE FRUSTRATION OF OTHER O. S. SLASH TWO USERS WHO COULDN'T FIND APPLICATIONS FOR THE PRODUCT NOT PREPARED TO LEAVE THE RALEIGH AREA WHEN HE FINISHED GRADUATE SCHOOL LAST YEAR MR. BOHAC DECIDED TO LAUNCH INDELIBLE BLUE A CATALOG THAT WOULD SELL O. S. SLASH TWO AND ITS APPLICATIONS HE AND HIS WIFE MS. ANSARDI PLANNED AN ADVERTISING CAMPAIGN FOR THE SPRING BUT THEY BEGAN LETTING ON LINE USERS KNOW THEY WOULD BE SELLING O. S. SLASH TWO BY WAY OF DISCUSSION GROUPS ON PRODIGY OR THE INTERNET THE COUPLE WHO THOUGHT THEY WOULD MAKE A DECENT LIVING FROM THE CATALOG WERE SHOCKED BY THE HUGE DEMAND BY THE TIME OUR FIRST PRINT ADS APPEARED IN APRIL OF LAST YEAR WE WERE ALREADY OUT OF OUR FIRST THREE THOUSAND CATALOGS AND HAD TO REPRINT MS. ANSARDI RECALLS EVERYBODY ALREADY KNEW ABOUT US FROM THE INTERNET AND ON LINE SERVICES THE COUPLE GOT A BOOST FROM A JUNE RELEASE OF O. S. SLASH TWO THAT WAS POPULAR AND A LATER RELEASE OF WINDOWS N. T. THAT PROVED DISAPPOINTING THEY DID A JUNE RUN OF FIVE THOUSAND CATALOGS THAT ALSO DISAPPEARED QUICKLY SINCE THEN THEY HAVE MERELY BEEN PRINTING PRODUCT LISTS IN RUNS OF TEN THOUSAND TO KEEP UP WITH DEMAND THEY CAME OUT WITH TWENTY FIVE THOUSAND NEW CATALOGS THIS MONTH THAT ARE ALSO MOVING QUICKLY MS. ANSARDI SAYS AVERAGE MONTHLY SALES SINCE LAST MARCH HAVE BEEN ABOUT TWO HUNDRED FIFTY THOUSAND DOLLARS SHE ADDS THAT INDELIBLE BLUE SHOULD QUOTE EASILY QUOTE HAVE REVENUE OF BETWEEN FIVE MILLION DOLLARS AND TEN MILLION DOLLARS IN NINETEEN NINETY FOUR INDELIBLE BLUE STILL USES SOME PRINT ADS BUT MOSTLY RELIES ON ON LINE WORD OF MOUTH TO GENERATE SALES THE CYBERSPACE COMMUNITY FROWNS ON ACTUAL ON LINE ADVERTISING OVER THE INTERNET USUALLY GREETING IT WITH HOSTILITY MR. PIGNATELLI HASN'T RUN A SINGLE PRINT AD SINCE SHORTLY AFTER HE OPENED THE CORNER STORE IN NINETEEN EIGHTY EIGHT LIKE INDELIBLE BLUE THE CORNER STORE GENERATES SALES THROUGH MESSAGES AND CONVERSATIONS TRANSMITTED ONLINE IN THE CORNER STORE'S CASE MAINLY VIA COMPUSERVE MR. PIGNATELLI WHO DESCRIBES HIMSELF AS AN EXPERT ON ARTIFICIAL INTELLIGENCE STARTED WITH AN ACTUAL STOREFRONT ON A LOCAL CORNER BUT SOON CLOSED IT ABOUT NINETY FIVE PERCENT OF OUR WALK IN SOFTWARE SALES WERE ON LINE HE SAYS LAST YEAR MR. PIGNATELLI SAYS HE HAD SALES OF ONE MILLION DOLLARS UP FROM ABOUT ONE HUNDRED THOUSAND DOLLARS IN NINETEEN EIGHTY NINE HE SAYS SALES SKYROCKETED LAST JUNE AFTER THE NEW VERSION OF O. S. SLASH TWO WAS RELEASED AND HAVE BEEN INCREASING TEN PERCENT TO FIFTEEN PERCENT A MONTH SINCE THEN MY PROFIT MARGIN WENT WAY UP BECAUSE I STOPPED PAYING FOR ADVERTISING AND JUST WENT ON LINE AND ANSWERED PEOPLE'S QUESTIONS WHEN THEY WERE HAVING PROBLEMS WITH O. S. SLASH TWO SAYS MR. PIGNATELLI THAT'S HOW I GET CUSTOMERS COMPUTER SPECIALISTS SAY THE CORNER STORE AND INDELIBLE BLUE HAVE TWO ADVANTAGES OVER TRADITIONAL SOFTWARE RETAILERS BECAUSE THEY OPERATE IN AN ELECTRONIC MILIEU THEY ARE ABLE TO RESPOND VERY QUICKLY TO DEMAND AND THEY HAVE THEIR FINGERS ON THE PULSE OF THEIR MARKET THEY ARE ALSO THE FIRST TRUE CYBERSPACE STORES THAT I'M AWARE OF SAYS JOHN SOYRING A SPOKESMAN FOR I. B. M.'S PERSONAL SOFTWARE PRODUCTS DIVISION BASED IN AUSTIN TEXAS QUOTE WE ARE LEARNING A LOT FROM THEM BECAUSE THEY ESTABLISHED THESE NEW CHANNELS QUOTE ADDS MR. SOYRING CYBERSPACE CHANNELS ARE GROWING SO RAPIDLY THAT I THINK IT WOULD BE A MISTAKE FOR OTHER COMPANIES NOT TO LOOK CLOSELY AT THEM THE TRADITIONAL SOFTWARE STORE WON'T DISAPPEAR ANYTIME SOON OF COURSE MANY COMPUTER USERS STILL AREN'T COMFORTABLE USING ON LINE SERVICES ANALYSTS SAY IT WILL BE FIVE TO TEN YEARS BEFORE ON LINE RETAILING DOMINATES THE SOFTWARE MARKET MANY TRADITIONAL RETAILERS ARE COOL TO THE IDEA OF ON LINE VENDING IT'S NOT OUR NATURE TO SELL PRODUCTS IN A DIRECT MAIL OR ON LINE ENVIRONMENT SAYS MARK DOBBERSTEIN A SENIOR BUYER FOR SOFTWARE ET CETERA STORES INCORPORATED A LARGE RETAIL CHAIN BASED IN EDINA MINNESOTA NONETHELESS MR. PIGNATELLI THINKS TRADITIONAL SOFTWARE RETAILERS IGNORE CYBERSPACE AT THEIR PERIL SOFTWARE CONSUMERS ARE VERY WILY AND COMPANIES CONTINUALLY UNDERESTIMATE THEM HE SAYS THE BIG COMPANIES WILL ALL HAVE TO PAY ATTENTION TO THIS BECAUSE THE SOFTWARE INDUSTRY WILL END UP LOOKING LIKE THE BANKING INDUSTRY EVERY TRANSACTION WILL OCCUR ELECTRONICALLY A COMMUNIST PARTY CADRE NAMED XU HAS BEEN DIVORCED THREE TIMES THE REASON HE TELLS SHANGHAI ON A CALL IN RADIO SHOW IS THAT HIS PENIS IS TOO SMALL QUOTE I'M A VERY POOR MAN I SPENT TWO THOUSAND THREE HUNDRED DOLLARS ALMOST ALL OF MY SAVINGS TO KEEP THEM HAPPY MR. XU EXPLAINS TO THE SHOW'S HOSTESS WEI LAN BUT HE SAYS OF HIS ANATOMICAL DEFICIENCY THEY CAN'T BE SATISFIED STILL I'M THINKING OF MARRYING A FOURTH WOMAN I CAN'T GO A DAY WITHOUT SEX WEI LAN OFFERS SOME OF HER TRADEMARK ADVICE YOU ABSOLUTELY MUST NOT MARRY A FOURTH WOMAN SHE SAYS YOU THINK YOU'RE A POOR MAN THINK OF THE POOR WOMEN WHO MARRY MEN LIKE YOU QUOTE SO GOES THE ALL DAY ALL NIGHT OUTPOURING OF NEUROSES ON EAST RADIO WHERE CHINA'S LARGEST CITY AIRS ITS DIRTY LAUNDRY IN A SOCIETY KNOWN FOR PURITANICAL SQUEAMISHNESS WHERE LOVERS STILL SHY AWAY FROM USING THE WORD LOVE AND A RECENT NATIONAL SURVEY SHOWED THAT SIXTY PERCENT OF THE POPULATION IS OFTEN OR SOMETIMES NAKED DURING SEX THE PUBLIC AIRWAVES NOW OFFER AN OUTLET FOR YEARS PERHAPS CENTURIES OF PENT UP ANGST SHANGHAI TALK RADIO SEVEN HUNDRED NINETY TWO A. M. HAS BECOME PSYCHIATRIST INTERNIST AND PRIEST TO THE TROUBLED AND A CONTINUOUS SOAP OPERA FOR EVERYBODY ELSE TUNE IN AT NIGHT TO HEAR CRIMINALS CONFESSING THEIR CRIMES CONCUBINES CURSING THEIR RIVALS AND STUDENTS PONDERING SUICIDE BEFORE FINAL EXAMS NOBODY CAN LAY A VERBAL FINGER ON DENG XIAOPING DISCUSSIONS OF DEMOCRACY REMAIN OFF LIMITS BUT TALK RADIO OPENS A WINDOW ON CHINA'S SOCIAL CHANGE CALLERS RANGE FROM THE MERELY SELF INDULGENT TO BLATANTLY ID DRIVEN SO MUCH FOR CHINA'S PAST EFFORTS TO CREATE SELFLESS SOCIALISTS ONE WOMAN A SECRETARY CALLS IN TO DESCRIBE HER ANGER AT HER BOSS WITH WHOM SHE IS SLEEPING HE SPENDS ALMOST ALL HIS NIGHTS AND WEEKENDS AT HOME WITH HIS WIFE AND CHILDREN SHE COMPLAINS I'M ALSO HIS LOVER BUT I SEE HIM ONLY DURING THE DAY WHY WON'T HE SPEND MORE TIME WITH ME THERE TO MULL SUCH QUESTIONS IS A GROUP OF GOVERNMENT APPOINTED TALK SHOW HOSTS AT THE TOP OF THE RATINGS THE ACERBIC WEI LAN HER SHOW RUNS BACK TO BACK WITH THE PROGRAM HOSTED BY THE ALSO POPULAR WANG WEI WHO BY HIS ACCOUNT HAS NEVER MET A PROBLEM HE COULDN'T SOLVE THEY BOTH SEEM ACUTELY SENSITIVE THAT TALK RADIO HOSTS ENJOY UNCERTAIN JOB TENURE PARTICULARLY IF THEIR PROGRAMS ATTRACT TOO MUCH ATTENTION THUS THEY ARE CAREFUL TO MELD POP PSYCHOLOGY WITH DEMANDS FOR FILIAL PIETY AND LENINIST COMMON SENSE PUT ANOTHER WAY THEIRS IS A PARTY LINE MR. WANG HAS A SHOW BUSINESS PEDIGREE DATING BACK TO HIS SERVICE IN THE PEOPLE'S LIBERATION ARMY WHERE HE ACTED IN A TROUPE AND STAGED PLAYS ABOUT REAL PEOPLE IN REAL LIFE SITUATIONS CURRENTLY ON THE SIDE HE APPEARS WEEKLY ON A LAW AND ORDER TELEVISION PROGRAM CALLED QUOTE TOPICS IN PUBLIC SECURITY QUOTE THIS PARTICULAR NIGHT HE SHUFFLES INTO THE EAST RADIO OFFICE AT NINE FORTY FIVE JUST IN TIME FOR HIS TEN P. M. RADIO GIG HE SCURRIES AROUND IN HIS MILITARY BOOTS AND BLACK LEATHER BELL BOTTOMS IN SEARCH OF A PACK OF DOUBLE HAPPINESS CIGARETTES HE ISN'T ALLOWED TO SMOKE IN THE STUDIO BUT HE LIKES TO DANGLE THEM FROM HIS LIPS THEN HE SETTLES HIMSELF IN FRONT OF THE MICROPHONE WE CAN ALL HAVE A SOLITARY FEELING IN THE BIG CITY HE BEGINS IN A BARONIAL RADIO VOICE LIGHT JAZZ TRAILING AWAY IN THE BACKGROUND WE SOMETIMES DON'T NEED MUCH TO FEEL WELCOMED A FLOWER A LEAF A LETTER YOU CAN ALSO CALL SOMEONE AND THAT'S WHY MY LINES ARE OPEN THE SWITCHBOARD LIGHTS UP A TWENTY ONE YEAR OLD IDENTIFIES HIMSELF AS ZHOU AND TELLS WANG WEI OF HIS LOST CHILDHOOD AT AGE TEN HE WAS KICKED OUT OF THE HOUSE BY HIS MOTHER AFTER HE PAWNED HER FOOD RATION COUPONS IN THE DEAD OF WINTER BY FIFTEEN HE WAS STEALING BICYCLES I WAS ARRESTED ONCE HE SAYS BREATHING HEAVILY BUT THEY LET ME GO WHEN I TRIED TO CUT MY OWN VEINS WHEN I GOT OUT I DID VERY BAD THINGS I CUT PEOPLE QUOTE LITTLE ZHOU YOU DID WHAT WANG WEI ASKS I CUT PEOPLE I STABBED THEM LITTLE ZHOU WHY ARE YOU CALLING TO TELL ME THIS TODAY I'M TIRED OF LIFE HE SAYS NOW SOBBING QUOTE WHEN I SAW THE BLOOD FROM MY VEINS I WAS RELIEVED I GOT PLEASURE FROM SEEING BLOOD TODAY I WANTED TO KILL A MAN WHO GAVE ME FIVE APPLES INSTEAD OF SIX AT THE MARKET I PAID FOR SIX LITTLE ZHOU IT'S IMPORTANT NOT TO HAVE SUCH IMPULSES YOU NEED TO CONTROL YOURSELF BUT I'M A MADMAN YOU'RE JUST CONFUSED TRY TO BE A GOOD MAN GO LISTEN TO KARAOKE GET A GOOD DINNER THE NEXT TIME YOU GET SUCH AN IMPULSE COUNT TO TEN AND THINK ABOUT THE RESULT QUOTE ON HER SHOW NIGHT TALK WEI LAN TAKES THE MIKE A MISS CHEN CALLS TO EXPRESS CONCERN ABOUT HER FIANCE WHO WAS ARRESTED THREE WEEKS BEFORE SHE DIDN'T BELIEVE HE HAD DONE ANYTHING WRONG AND SHE HASN'T BEEN INFORMED ABOUT ANY INDICTMENT I MISS HIM VERY MUCH AND I WANT HIM BACK SHE SAYS WHY DON'T YOU GO TO THE PUBLIC SECURITY BUREAU AND ASK WHY HE WAS PUT IN JAIL MS. WEI SAYS THAT'S RIGHT MS. WEI REPLIES IF HE WAS ARRESTED THEN OF COURSE HE VIOLATED CHINESE LAWS MAYBE YOU SHOULD LOOK FOR ANOTHER HUSBAND QUOTE NOT ALL OF EAST RADIO'S PROGRAMMING SENDS CALLERS TO THE PHONES ONE AFTERNOON SHOW TODAY'S NEW TOPIC RECENTLY DELVED INTO THE PROBLEM OF TRAFFIC CONGESTION FOR THE THIRTIETH TIME IN THREE MONTHS TRAFFIC POLICE LED A TWO HOUR DISCUSSION ON HOW TO KEEP SIDEWALKS FREE OF CLUTTER MORE COMMON HOWEVER ARE THE LENGTHY DIALOGUES ABOUT FAMILY SPATS THIS IS ALSO REFERRED TO AS THE ONE BED TWO QUILT PHENOMENON OR WIVES WHO WON'T SLEEP WITH THEIR HUSBANDS A MR. QIAN PHONES WANG WEI TO TELL OF HIS AND HIS WIFE'S PLANS TO MOVE INTO A NEW HOME AND LEAVE HIS NAGGING MOTHER BEHIND MY WIFE AND MY MOTHER FIGHT EVERY DAY MY WIFE TAKES IT OUT ON ME HE SAYS MY WIFE TOLD ME THAT WE MOVE OUT TOGETHER OR SHE MOVES OUT ALONE I'M NOW FORTY YEARS OLD SO I THINK I CAN LIVE OUTSIDE MY MOTHER'S HOUSE QUOTE MR. WANG CAUTIONS AGAINST IT THERE'S AN OLD CHINESE SAYING THE PRIME MINISTER'S HEART IS BIG ENOUGH TO SAIL A SHIP IN HE SAYS YOUR MOTHER IS YOUR PRIME MINISTER SHE'S THE ONLY ONE WHO HAS THE WHOLE FAMILY IN HER HEART NOT ALL CALLERS ARE SATISFIED WITH SUCH ADVICE SO PAMELA PAK A HONG KONG AUTHOR AND TALK SHOW HOSTESS IN THE BRITISH COLONY TRIED A DIFFERENT APPROACH WHEN BEIJING BROADCASTING STATION OFFERED HER A NIGHTTIME SLOT LAST SUMMER HOSTS MS. PAK SAYS ALWAYS SAY KIDS SHOULD LISTEN TO THE PARENTS WIVES SHOULD MAKE THE MARRIAGE WORK BUT IF YOU JUST ANSWER ACCORDING TO CHINESE VALUES AND GOVERNMENT GUIDANCE PEOPLE WILL GO CRAZY THEY HAVE NO VALUES AFTER MAO CHINA REALLY NEEDS PSYCHOTHERAPY MAYBE SO BUT SHE WON'T BE THE ONE TO GIVE IT BEFORE SHE HAD FINISHED HER SECOND MONTH ON THE AIR THE MINISTRY OF RADIO FILM AND TELEVISION CANCELED HER SHOW MS. PAK CAN BUT SPECULATE ON THE CAUSE IT MAY HAVE BEEN THE ARMY OFFICER WHO CALLED TO COMPLAIN THAT SINCE THE NINETEEN EIGHTY NINE ARMY CRACKDOWN ON PROTESTERS IN BEIJING HE HASN'T BEEN ABLE TO GET A DATE OR MAYBE IT WAS THE CONVICT WHO MANAGED TO PHONE FROM PRISON TO SAY THAT HE STILL STANDS FIRM ON HUMAN RIGHTS WHATEVER IT WAS QUOTE THE GOVERNMENT DECIDED THEY JUST DIDN'T LIKE ME QUOTE WANG WEI MAY HAVE HAD THAT LESSON IN MIND WHEN ASKED TO ANALYZE THE PENIS ENVY UNREQUITED LOVE AND JUVENILE DELINQUENCY THAT FILLS HIS AIR TIME I REFER YOU TO THE SELECTED WORKS' OF COMRADE DENG XIAOPING HE TELLS AN INTERVIEWER TAKING A PHANTOM DRAG ON HIS DOUBLE HAPPINESS WE'RE ALL CONCERNED WITH SPIRITUAL CIVILIZATION MATERIAL CIVILIZATION AND THE CARRYING OUT OF SOCIALIST CONSTRUCTION THE FOLLOWING U. S. TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT G. T. E. NORTH INCORPORATED TWO HUNDRED FIFTY MILLION DOLLARS OF TEN YEAR NONCALLABLE PAPER VIA COMPETITIVE BIDS VIRGINIA ELECTRIC AND POWER COMPANY ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF THIRTY YEAR BONDS WITH A TEN YEAR CALL OPTION VIA COMPETITIVE BID ADVANCED TISSUE SCIENCES INCORPORATED TWO POINT FIVE MILLION SHARES VIA MONTGOMERY SECURITIES ALLIED WASTE INDUSTRIES INCORPORATED SEVENTY FIVE MILLION DOLLARS OF TEN YEAR SENIOR SUBORDINATED NOTES VIA C. S. FIRST BOSTON BANCO NACIONAL DE COMERCIO EXTERIOR S. N. C. ONE BILLION DOLLARS OF TEN YEAR GLOBAL BONDS VIA GOLDMAN SACHS AND COMPANY AND MERRILL LYNCH AND COMPANY CELESTIAL SEASONINGS INCORPORATED FOUR HUNDRED TWENTY FIVE THOUSAND SHARES VIA PAINEWEBBER INCORPORATED CMG INFORMATION SERVICES INITIAL ONE POINT THREE MILLION SHARES VIA PIPER JAFFRAY INCORPORATED CHEESECAKE FACTORY INCORPORATED ONE POINT EIGHT MILLION SHARES VIA MONTGOMERY SECURITIES AND ALEXANDER BROWN AND SONS INCORPORATED EASTGROUP PROPERTIES TWO MILLION SHARES VIA KIDDER PEABODY AND COMPANY EQUITY RESIDENTIAL PROPERTIES TRUST FOUR MILLION COMMON SHARES VIA MERRILL LYNCH ESMOR CORRECTIONAL SERVICES INITIAL EIGHT HUNDRED THIRTY THREE THOUSAND THREE HUNDRED THIRTY THREE SHARES VIA JANNEY MONTGOMERY SCOTT FAMILY RESTAURANTS INCORPORATED FOUR HUNDRED MILLION DOLLAR TWO PART OFFERING VIA DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION GABLES PROPERTIES TRUST INITIAL SEVEN POINT SIX MILLION COMMON SHARES VIA MERRILL LYNCH GAMETEK INCORPORATED INITIAL TWO POINT ONE MILLION SHARES VIA OPPENHEIMER GLIMCHER REALTY TRUST INITIAL FIFTEEN POINT EIGHT MILLION SHARES OF BENEFICIAL INTEREST VIA PAINEWEBBER INCORPORATED GREAT LAKES AVIATION LIMITED INITIAL TWO POINT FIVE MILLION SHARES VIA ALEXANDER BROWN AND SONS HOST MARRIOTT CORPORATION SEVENTEEN POINT FIVE MILLION SHARES VIA DONALDSON LUFKIN AND JENRETTE L. A. T. SPORTSWEAR INCORPORATED INITIAL ONE POINT TWO MILLION SHARES VIA ROBINSON HUMPHREY M. F. S. COMMUNICATIONS COMPANY FOUR HUNDRED MILLION DOLLARS OF TEN YEAR SENIOR DISCOUNT NOTES VIA SALOMON BROTHERS INCORPORATED PLANTRONICS INCORPORATED INITIAL THREE POINT SIX MILLION SHARES VIA SMITH BARNEY SHEARSON INCORPORATED SOUTHDOWN INCORPORATED ONE POINT THREE MILLION SHARES VIA MERRILL LYNCH STANFORD TELECOMMUNICATIONS INCORPORATED ONE POINT THREE MILLION SHARES VIA OPPENHEIMER AND COMPANY MASSACHUSETTS TWO HUNDRED MILLION DOLLARS OF SERIES A CONSOLIDATED LOAN OF NINETEEN NINETY FOUR GENERAL OBLIGATION BONDS VIA COMPETITIVE BID NORTH CAROLINA FOUR HUNDRED MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR CAPITAL IMPROVEMENT BONDS VIA COMPETITIVE BID WASHINGTON SUBURBAN SANITARY DISTRICT MARYLAND FOUR HUNDRED THIRTY FIVE POINT FIVE MILLION DOLLARS OF VARIOUS NINETEEN NINETY FOUR IMPROVEMENT WATER SUPPLY SEWAGE DISPOSAL AND GENERAL CONSTRUCTION REFUNDING BONDS DUE NINETEEN MILLION NINE HUNDRED FORTY TWO THOUSAND FIFTEEN VIA COMPETITIVE BID PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCE AUTHORITY TWO HUNDRED FIVE MILLION DOLLARS OF BONDS CONSISTING OF ONE HUNDRED EIGHTY MILLION DOLLARS OF TAX EXEMPT RESOURCE RECOVERY REVENUE BONDS AND TWENTY FIVE MILLION DOLLARS OF TAXABLE BONDS VIA GOLDMAN SACHS PHILADELPHIA PENNSYLVANIA ONE HUNDRED SEVENTY NINE MILLION THIRTY FIVE THOUSAND DOLLARS OF GAS WORKS REVENUE AND REFUNDING BONDS VIA A PAINEWEBBER INCORPORATED GROUP NASSAU COUNTY N. Y. TWO HUNDRED FIFTY MILLION DOLLARS OF F. G. I. C. INSURED GENERAL OBLIGATION BONDS DUE NINETEEN NINETY FOUR TO TWO THOUSAND SIXTEEN VIA A SMITH BARNEY SHEARSON GROUP NEW YORK STATE DORMITORY AUTHORITY ONE HUNDRED EIGHTY MILLION DOLLARS OF BONDS FOR COLUMBIA UNIVERSITY DUE NINETEEN NINETY SIX TO TWO THOUSAND TEN TWO THOUSAND TWELVE AND TWO THOUSAND FOURTEEN VIA A J. P. MORGAN SECURITIES INCORPORATED GROUP NORTH CAROLINA MUNICIPAL POWER AGENCY NUMBER ONE ONE HUNDRED FIVE MILLION THREE HUNDRED SEVENTY FIVE THOUSAND DOLLARS OF CATAWBA ELECTRIC REVENUE BONDS VIA A GOLDMAN SACHS GROUP SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY TWO HUNDRED TWENTY FIVE MILLION NINE HUNDRED FORTY THOUSAND DOLLARS OF BONDS DUE NINETEEN NINETY SEVEN TO TWO THOUSAND NINE CONSISTING OF ONE HUNDRED SEVENTY THREE MILLION DOLLARS FOR MEAD ADELANTO AND FIFTY TWO MILLION DOLLARS FOR MEAD PHOENIX VIA A C. S. FIRST BOSTON GROUP CHOICE DRUG SYSTEMS INCORPORATED SAID IT IS NEGOTIATING A SETTLEMENT WITH THE U. S. ATTORNEY'S OFFICE IN PHILADELPHIA TO ALLOW THE COMPANY TO STAY IN THE MEDICARE PROGRAM DESPITE PAST CLAIMS PROBLEMS CHOICE DRUG SAID AN INTERNAL INVESTIGATION OF ITS FLORIDA UNIT IDENTIFIED ABOUT ONE POINT NINE MILLION DOLLARS OF REIMBURSEMENTS AFFECTED BY DOCUMENTATION PROBLEMS SUCH AS FALSE AUTHORIZATION SIGNATURES ON MEDICARE CLAIM FORMS IN AUGUST THE COMPANY SAID IT DISCOVERED IN THE INTERNAL PROBE THAT A FORMER OFFICIAL SIGNED SOME CLAIMS WITHOUT PROPER AUTHORIZATION MEDICARE REIMBURSEMENTS MAKE UP ABOUT TEN PERCENT TO FIFTEEN PERCENT OF CHOICE DRUG'S BUSINESS CHOICE PROVIDES PHARMACEUTICALS AND MEDICAL EQUIPMENT AND DISPOSABLE PRODUCTS TO HEALTH CARE FACILITIES AND THROUGH MAIL ORDER IT ALSO MANAGES HOSPITAL PHARMACIES FRANK MANDELBAUM CHOICE PRESIDENT SAID HE BELIEVES AN AGREEMENT WITH THE GOVERNMENT WILL COST THE COMPANY AN UNDETERMINED AMOUNT OF MONEY BUT HE SAID HE DIDN'T KNOW WHETHER THE AMOUNT WOULD AFFECT EARNINGS A PAYMENT MAY BE COVERED UNDER THE COMPANY'S INSURANCE POLICY HE SAID MR. MANDELBAUM SAID NO SENIOR MANAGEMENT KNEW OF THE DOCUMENTATION PROBLEMS AND THE OFFICIAL AT THE UNIT WHO WAS INVOLVED HAS BEEN FIRED QUOTE THIS WASN'T A CASE OF TRYING TO DEFRAUD THE GOVERNMENT OF MONEY QUOTE MR. MANDELBAUM SAID THE FORMER OFFICIAL TOOK A SHORTCUT WHICH CREATED A PROBLEM HE SAID SEPARATELY CHOICE REPORTED ITS NET LOSS FOR THE THIRD QUARTER ENDED NOVEMBER THIRTIETH NARROWED TO TWO HUNDRED TWELVE THOUSAND FIVE HUNDRED NINETY FOUR DOLLARS OR THREE CENTS A SHARE FROM ONE POINT ONE MILLION DOLLARS OR SEVENTEEN CENTS A SHARE A YEAR EARLIER SALES ROSE TWELVE PERCENT TO THIRTEEN POINT SEVEN MILLION DOLLARS FROM TWELVE POINT TWO MILLION DOLLARS GENERAL MOTORS CORPORATION AND THE UNITED AUTO WORKERS REACHED A TENTATIVE SETTLEMENT TO END A STRIKE AT G. M.'S SHREVEPORT LOUISIANA PICKUP TRUCK PLANT THAT WAS CALLED TO PROTEST THE AUTO MAKER'S EFFORT TO BOOST PRODUCTIVITY BUT THE SHREVEPORT SETTLEMENT DOESN'T NECESSARILY MEAN AN END TO G. M.'S LATEST ROUND OF LABOR TROUBLES U. A. W. VICE PRESIDENT STEPHEN P. YOKICH THE UNION'S TOP BARGAINER AT G. M. SAID LAST WEEK THAT ONCE THE SHREVEPORT STRIKE WAS SETTLED HE WOULD TURN UP PRESSURE ON G. M.'S PARTS OPERATIONS TO BACK AWAY FROM THEIR DEMANDS TO GET MORE OUTPUT WITH FEWER WORKERS G. M. WOULDN'T RELEASE DETAILS OF THE SETTLEMENT REACHED AT ONE FORTY FIVE A. M. SUNDAY THE U. A. W. LOCAL THAT REPRESENTS ABOUT TWO THOUSAND THREE HUNDRED WORKERS AT SHREVEPORT HAD CALLED THE WALKOUT LAST TUESDAY TO PROTEST G. M.'S MOVE TO BOOST PRODUCTION OF COMPACT CHEVROLET S. TEN AND G. M. C. SONOMA PICKUPS WORKERS NOW ARE EXPECTED TO RETURN TO THEIR JOBS TOMORROW AFTER A RATIFICATION VOTE SCHEDULED FOR TODAY ALL OF G. M.'S U. S. PLANTS ARE SHUT TODAY IN OBSERVANCE OF MARTIN LUTHER KING'S BIRTHDAY THE TERMS OF THE SHREVEPORT SETTLEMENT PROMISE TO BE A BENCHMARK FOR G. M. IN FUTURE DISPUTES WITH THE U. A. W. OVER PRODUCTIVITY AND MANY SUCH DISPUTES ARE LIKELY AS PRESIDENT JOHN F. SMITH JUNIOR PUSHES TO MAKE NORTH AMERICAN OPERATIONS PROFITABLE THIS YEAR G. M. SPENDS NEARLY EIGHT HUNDRED DOLLARS MORE TO ASSEMBLE A VEHICLE THAN RIVAL FORD MOTOR COMPANY ACCORDING TO A STUDY BY THE CONSULTING FIRM HARBOUR AND ASSOCIATES MR. SMITH HAS VOWED TO CLOSE THAT GAP BY NINETEEN NINETY SIX AS G. M.'S U. S. FACTORIES GET NEW BETTER DESIGNED PRODUCTS DURING THE NEXT TWO TO THREE YEARS SUCH AS THE REDESIGNED S. TEN PICKUPS BUILT AT SHREVEPORT LOCAL MANAGERS ARE EXPECTED TO USE THE MODEL CHANGE TO MAKE BIG STRIDES TOWARD MATCHING FORD PRODUCTIVITY LEVELS BUT U. A. W. LEADERS SAID THE SHREVEPORT STRIKE WAS A WARNING TO G. M. NOT TO PUSH TOO FAR TOO FAST WITH PLANT LEVEL EFFORTS TO SPEED PRODUCTION WHILE SIMULTANEOUSLY TRIMMING THE HOURLY WORK FORCE A G. M. SPOKESWOMAN WOULDN'T SAY YESTERDAY WHETHER G. M. AGREED TO HIRE MORE WORKERS OR SLOW THE PRODUCTION SPEED AS PART OF THE SHREVEPORT AGREEMENT BUT SHE INSISTED THE AGREEMENT QUOTE ALLOWS US TO BE MORE EFFICIENT AND PRODUCE THE VOLUME OF TRUCKS WE NEED QUOTE ANALYSTS HAD ESTIMATED THAT THE SHREVEPORT STRIKE WOULD COST G. M. ABOUT TWO MILLION DOLLARS TO THREE MILLION DOLLARS A DAY IN LOST PRODUCTION OR ABOUT EIGHT MILLION DOLLARS TO TEN MILLION DOLLARS FOR THE DURATION OF THE WALKOUT BUT THE COSTS COULD BE GREATER IF THE U. A. W. DECIDES TO SHUT DOWN A PARTS PLANT A STRIKE AT A KEY PARTS FACTORY COULD QUICKLY IDLE SEVERAL ASSEMBLY PLANTS THE POTENTIAL FOR CONFLICT OVER PRODUCTIVITY IN G. M.'S PARTS OPERATIONS HAS LOOMED GREATER IN RECENT WEEKS SINCE J. T. BATTENBERG THE THIRD THE GROUP VICE PRESIDENT IN CHARGE OF G. M.'S AUTOMOTIVE COMPONENTS GROUP WORLDWIDE BEGAN BLUNTLY AND PUBLICLY STATING THAT ROUGHLY TWENTY PERCENT OF G. M.'S REMAINING U. S. PARTS OPERATIONS COULD FACE SHUTDOWN OR SALE IF THEY DON'T ACHIEVE COMPETITIVE PROFIT AND PRODUCTIVITY TARGETS BY THE END OF THIS YEAR MANAGERS AT G. M. PARTS PLANTS HAVE ANGERED U. A. W. LEADERS BY PUSHING HARD TO GET PRODUCTIVITY CONCESSIONS IN LOCAL CONTRACT TALKS MR. YOKICH HIMSELF UNLEASHED AN ANGRY TIRADE AT MR. SMITH LAST MONTH DURING THE SIGNING CEREMONY FOR THE U. A. W. G. M. NATIONAL AGREEMENT IN PART TO VENT HIS DISPLEASURE WITH MANAGEMENT BARGAINING TACTICS AT A BIG G. M. PARTS OPERATION IN SANDUSKY OHIO LANCIT MEDIA PRODUCTIONS LIMITED THE PRODUCER OF THE QUOTE READING RAINBOW QUOTE SERIES ON PUBLIC BROADCASTING SERVICE WENT PUBLIC IN NINETEEN NINETY ONE A PAGE ONE ARTICLE THURSDAY SAID INCORRECTLY THAT AT THE TIME OF THE INITIAL PUBLIC OFFERING LANCIT HAD A P. B. S. COMMITMENT FOR ANOTHER SERIES THE PUZZLEWORKS LANCIT DIDN'T RECEIVE THE COMMITMENT FOR THE PUZZLEWORKS UNTIL AFTER THE INITIAL PUBLIC OFFERING VICE PRESIDENT AL GORE'S TYPING IN AN ON LINE FORUM WAS MISCHARACTERIZED IN AN ARTICLE FRIDAY BASED ON A PARTIAL TRANSCRIPT A REVIEW OF THE ENTIRE TRANSCRIPT SHOWS RELATIVELY FEW TYPOGRAPHICAL ERRORS FORD MOTOR COMPANY'S FORTY PERCENT OWNERSHIP IN EXCEL INDUSTRIES INCORPORATED WAS DILUTED OVER TIME TO A TWENTY FOUR PERCENT STAKE AS EXCEL SOLD NEW EQUITY AN ARTICLE FRIDAY INCORRECTLY REPORTED THAT FORD SOLD EXCEL SHARES CROSS TIMBERS OIL COMPANY SAID IT COMPLETED TWENTY EIGHT POINT FOUR MILLION DOLLARS IN ACQUISITIONS INCREASING ITS WORKING INTEREST IN AN OIL AND GAS PRODUCING FIELD IN WEST TEXAS THE OIL AND NATURAL GAS COMPANY SAID IT NOW OWNS A NINETY ONE POINT FIVE PERCENT WORKING INTEREST IN THE PRENTICE NORTHEAST UNIT WHICH IT WILL OPERATE CROSS TIMBERS SAID IT ACQUIRED A TWENTY NINE POINT FOUR PERCENT WORKING INTEREST FROM A UNIT OF AMOCO CORPORATION AND A THIRTEEN POINT TWO PERCENT WORKING INTEREST FROM A CLOSELY HELD COMPANY DIDN'T IDENTIFY SEVERAL MAJOR ATHLETIC FOOTWEAR MANUFACTURERS STUNG BY THE RECENT FASHION SWITCH FROM SNEAKERS TO BOOTS WILL REPORT DISAPPOINTING EARNINGS FOR THE LATEST QUARTER ANALYSTS PREDICT BUT THE FASHION CHANGE BUOYED PROFITS FOR THE MAKERS OF RUGGED OUTDOOR GEAR THEY ADD ANALYSTS ESTIMATE EARNINGS FELL NINE PERCENT AT REEBOK INTERNATIONAL INCORPORATED AND TWENTY FOUR PERCENT AT STRIDE RITE CORPORATION NIKE INCORPORATED HAS ALREADY REPORTED A THIRTY ONE PERCENT EARNINGS DECLINE AND L. A. GEAR INCORPORATED SIGNALED LAST WEEK THAT IT WOULD REPORT A LOSS MEANWHILE PROFITS CLIMBED AN ESTIMATED FORTY THREE PERCENT AT TIMBERLAND COMPANY WHICH SPECIALIZES IN OUTDOOR WEAR AND TWENTY FOUR PERCENT AT NINE WEST GROUP INCORPORATED A CASUAL LEATHER SHOE CONCERN THE FASHION CHANGE CAUGHT MANY SNEAKER MAKERS FLAT FOOTED SAY ANALYSTS QUOTE FOR A LONG TIME THE NEED FOR CASUAL WEAR WAS SATISFIED BY THE TECHNICALLY ADVANCED SNEAKER QUOTE SAYS LEE ALLEN PRESIDENT OF ALLEN FINANCIAL ADVISORS AN INVESTMENT CONSULTING FIRM IN BOSTON BUT TAKING A CLUE FROM THEIR EUROPEAN COUNTERPARTS A NUMBER OF U. S. LEATHER SHOE MAKERS GOT MORE CREATIVE IN DESIGNING AND ADDING SUCH HIGH TECH FEATURES AS WATERPROOFING TO FOOTWEAR AND APPAREL HE SAYS THE NEW FASHION WIDELY EMBRACED BY YOUNGER CONSUMERS HIT MANY OF THE BIG SNEAKER MANUFACTURERS IN BREAD AND BUTTER CATEGORIES SUCH AS BASKETBALL SHOES NOTES JOSIE ESQUIVEL ANALYST FOR LEHMAN BROTHERS INCORPORATED IN ANNOUNCING A THIRTY ONE PERCENT DROP IN NET INCOME FOR THE SECOND QUARTER ENDED NOVEMBER THIRTIETH NIKE SAID LAST MONTH THAT U. S. SALES OF ITS CORE BASKETBALL SHOES FELL TWENTY FIVE PERCENT THE BEAVERTON OREGON COMPANY REPORTED PROFIT OF FIFTY TWO POINT THREE MILLION DOLLARS OR SIXTY NINE CENTS A SHARE DOWN FROM SEVENTY SIX MILLION DOLLARS OR NINETY EIGHT CENTS A SHARE A YEAR EARLIER REVENUE SLID EIGHT PERCENT TO EIGHT HUNDRED FIVE POINT EIGHT MILLION DOLLARS FROM EIGHT HUNDRED SEVENTY FIVE POINT EIGHT MILLION DOLLARS LIKEWISE REEBOK IS EXPECTED TO REPORT THAT FOURTH QUARTER EARNINGS FELL TO FIFTY FOUR CENTS A SHARE FROM FIFTY NINE CENTS A SHARE A YEAR EARLIER RECKONS MS. ESQUIVEL SALES SHE PROJECTS SLIPPED FIVE PERCENT TO SIX HUNDRED SIXTEEN MILLION DOLLARS FROM SIX HUNDRED FORTY TWO MILLION DOLLARS SALES OF REEBOK'S BASKETBALL SHOES DESPITE A CADRE OF PROFESSIONAL ATHLETE ENDORSEMENTS IS EXPECTED TO BE DOWN SIGNIFICANTLY AS WELL SHE SAYS THE CATEGORY TO SOME EXTENT HAS ALSO LOST ZIP AS SALES OF THE COMPANY'S CROSS TRAINING SHOES HAVE GAINED MOMENTUM SHE ADDS ATTEMPTING TO REGROUP IN THE WAKE OF A SHIFT IN CONSUMER PREFERENCE REEBOK OF STOUGHTON MASSACHUSETTS EARLIER THIS MONTH RESHUFFLED ITS MANAGEMENT ANOTHER ATHLETIC SHOE MANUFACTURER THAT HAS BLAMED SHIFTING CONSUMER TASTES IS L. A. GEAR BASED IN SANTA MONICA CALIFORNIA THE COMPANY LAST WEEK ESTIMATED ITS FISCAL FOURTH QUARTER LOSS FROM CONTINUING OPERATIONS AT UP TO SIXTEEN MILLION DOLLARS NOTING AMONG OTHER THINGS THAT EXCESS INVENTORIES CONTINUE TO DEPRESS EARNINGS THE COMPANY DIDN'T PROVIDE A NET LOSS ESTIMATE BUT GARY JACOBSON AN ANALYST FOR KIDDER PEABODY INCORPORATED ESTIMATES A LOSS OF SEVENTY FIVE CENTS A SHARE FOR THE PERIOD ENDED NOVEMBER THIRTIETH BUT THE LOSS WOULD BE NARROWER THAN THE ONE DOLLAR AND FOURTEEN CENTS A SHARE IN THE YEAR EARLIER QUARTER THANKS IN PART TO STRONG SALES OF CHILDREN'S SHOES L. A. GEAR'S SALES ARE EXPECTED TO HAVE CLIMBED TWENTY PERCENT TO NINETY FIVE MILLION DOLLARS FROM SEVENTY MILLION DOLLARS IN THE YEAR EARLIER QUARTER WHILE THE SWEEPING SHIFT TOWARD OUTDOOR FOOTWEAR IMPACTED MANY ATHLETIC FOOTWEAR MAKERS AN UNDERCURRENT OF SMALLER FASHION SHIFTS AFFECTED SALES OF SOME OTHER FIRMS STRIDE RITE CAMBRIDGE MASSACHUSETTS WHOSE PLAIN VANILLA KEDS SNEAKERS HAVE LOST SOME OF THEIR POPULARITY IS EXPECTED TO REPORT EARNINGS OF TWENTY CENTS A SHARE DOWN TWENTY FOUR PERCENT FROM TWENTY SIX CENTS A SHARE A YEAR AGO ESTIMATES LEHMAN BROTHERS' MS. ESQUIVEL SALES HELPED BY THE ADDITION OF A LOONIE TOONS LOGO ON SOME OF THE COMPANY'S CHILDREN'S SHOES SHOULD CLIMB TWO PERCENT TO ONE HUNDRED TEN MILLION DOLLARS FROM ONE HUNDRED SEVEN POINT SIX MILLION DOLLARS SHE SAYS EVEN THOUGH IMPROVING SALES OF STRIDE RITE'S SPERRY TOPSIDER BOAT SHOES HAS BEEN A BIG CORPORATE GOAL THE BOAT SHOE DIVISION HAS BEEN A DRAG ON THE COMPANY'S PROFITS MS. ESQUIVEL SAYS THE ISSUE IS WHAT THE OVERALL ATHLETIC FOOTWEAR INDUSTRY IS GOING TO DO AS A RESULT OF THE CONSUMER SHIFT SAID MR. JACOBSON THE KIDDER PEABODY ANALYST MY GUESS IS THAT NINETEEN NINETY FOUR WILL BE A YEAR OF STABILIZATION AND NINETEEN NINETY FIVE WILL BE A YEAR OF VERY MODEST GROWTH FOR ATHLETIC SHOE MANUFACTURERS MEANWHILE OUTDOOR FOOTWEAR FIRMS CONTINUE TO MAKE STRIDES ALLEN FINANCIAL'S MR. ALLEN PROJECTS THAT TIMBERLAND BASED IN HAMPTON N. H. WILL REPORT PER SHARE EARNINGS OF SIXTY THREE CENTS UP FORTY THREE PERCENT FROM FORTY FOUR CENTS IN THE YEAR EARLIER QUARTER HE PREDICTS SALES CLIMBED FORTY ONE PERCENT TO ONE HUNDRED TWENTY FIVE MILLION DOLLARS FROM EIGHTY EIGHT POINT SIX MILLION DOLLARS MR. ALLEN PEGS PART OF THE TIMBERLAND'S SUCCESS TO THE FACT THAT CONSUMERS NOW CAN BUY THE COMPANY'S TIMBERLAND SHOES AT TWO BIG RETAIL CHAINS NORDSTROM AND DILLARD DEPARTMENT STORES THE TIMBERLAND BRAND ALSO GOT A BOOST FROM A MAJOR ADVERTISING CAMPAIGN LAUNCHED IN THE SECOND HALF OF NINETEEN NINETY THREE ALTHOUGH THE COMPANY DOESN'T DISCLOSE ITS ADVERTISING BUDGET MR. ALLEN ESTIMATES TIMBERLAND SPENT EIGHTEEN MILLION DOLLARS ON ADS FIFTY PERCENT MORE THAN IN NINETEEN NINETY TWO AS IT EXPANDED ITS MARKETING EFFORTS TO THIRTY REGIONS IN NINETEEN NINETY THREE FROM THREE THE PREVIOUS YEAR SALES GAINS ALSO CAME AS A RESULT OF A PRICE CUT ON SOME SHOE LINES DUE TO IMPROVED MANUFACTURING EFFICIENCIES HE SAYS THE PREFERENCE FOR LEATHER SHOES PARTICULARLY AMONG WOMEN HAS BOOSTED NINE WEST GROUP'S RESULTS THE MANUFACTURER AND RETAILER BASED IN SAINT LOUIS AND STAMFORD CONNECTICUT IS EXPECTED TO REPORT FOURTH QUARTER NET INCOME OF THIRTY SIX CENTS A SHARE A TWENTY FOUR PERCENT INCREASE FROM LAST YEAR'S TWENTY NINE CENTS A SHARE SAYS MS. ESQUIVEL FOURTH QUARTER SALES SHE SAYS SHOULD CLIMB TWENTY PERCENT TO ONE HUNDRED FORTY TWO MILLION DOLLARS FROM ONE HUNDRED EIGHTEEN POINT THREE MILLION DOLLARS LAST YEAR THE REASON WOMEN STARTED WEARING SNEAKERS TO WORK WAS BECAUSE LEATHER SHOES WERE SO UNCOMFORTABLE SAYS MS. ESQUIVEL BUT AS LEATHER SHOES HAVE BECOME MORE COMFORTABLE MORE WOMEN ARE COMMUTING TO WORK IN NINE WEST TYPE SHOES AMONG SMALLER ATHLETIC SHOE MAKERS K. SWISS INCORPORATED BASED IN CHATSWORTH CALIFORNIA IS EXPECTED TO REPORT FOURTH QUARTER EARNINGS OF TWENTY TWO CENTS A SHARE COMPARED WITH TWENTY CENTS A YEAR AGO SAYS MARK FRIEDMAN AN ANALYST FOR GOLDMAN SACHS AND COMPANY MR. FRIEDMAN SAYS THE EARNINGS GAIN CAME ON THE HEELS OF QUOTE A SLIGHT INCREASE IN FOURTH QUARTER SALES QUOTE ALTHOUGH THE FOURTH QUARTER ISN'T ITS BIGGEST SALES PERIOD K. SWISS GOT A BOOST WHEN POPE JOHN PAUL THE SECOND PURCHASED A PAIR OF K. SWISS SHOES DURING HIS VISIT TO DENVER LAST AUGUST THE POPE WHO WORE THE SHOES DUE TO THE UNEVEN TERRAIN OF THE ROCKY MOUNTAINS ONLY STIPULATED THAT THE STANDARD WHITE LACINGS BE REPLACED WITH GOLD LACES SUCCESS HAS ITS PRICE ASK ANY AMERICAN LAWYER IN RUSSIA FEW WESTERN INTERESTS HAVE BEEN AS AGGRESSIVE AS U. S. LAW FIRMS IN TRYING TO CAPITALIZE ON RUSSIA'S ECONOMIC REFORMS SINCE THE LATE NINETEEN EIGHTIES A NUMBER OF LARGE U. S. FIRMS HAVE OPENED OFFICES IN MOSCOW AND THEY HAVE BEEN HIGHLY SUCCESSFUL PARTLY BECAUSE THEY ARE STAFFED BY LOCAL RUSSIAN LAWYERS HIRED AT A FRACTION OF WHAT U. S. LAWYERS MAKE NOW AMID GROWING ULTRANATIONALISM RUSSIAN LAW FIRMS HAVE BEEN COMPLAINING THAT THEY ARE INCREASINGLY GETTING CUT OUT OF THE ACTION AND WHILE NO ONE IS SUGGESTING TOTAL BANISHMENT THERE ARE PROPOSALS TO SHARPLY CURTAIL WHAT U. S. FIRMS CAN DO TO HALT WHAT SOME VIEW AS THE EXPLOITATION OF THE RUSSIAN BAR RECENTLY YURI KALMYKOV RUSSIAN MINISTER OF JUSTICE ACCUSED WESTERN FIRMS OF RENTING PRESTIGIOUS OFFICES IN CENTRAL MOSCOW AND SAINT PETERSBURG AT QUOTE MINIMAL RATES QUOTE AND PAYING LOCAL LAWYERS QUOTE MISERABLE WAGES QUOTE ACCORDING TO A LETTER HE SENT TO THE INFLUENTIAL RUSSIAN COUNCIL OF MINISTRIES SPOKESMEN FOR U. S. FIRMS DENY THOSE CHARGES NONETHELESS MR. KALMYKOV A FORMER COMMUNIST PARTY MEMBER HAS CALLED ON RUSSIAN PRESIDENT BORIS YELTSIN TO ISSUE A SPECIAL DECREE THAT WILL CRACK DOWN ON MAJOR WESTERN LAW FIRMS THIS ISN'T THE FIRST TIME THAT U. S. FIRMS HAVE HAD TROUBLE WHEN TRYING TO HANG OUT THEIR SHINGLES OVERSEAS UNTIL NINETEEN EIGHTY SIX U. S. FIRMS WERE FORBIDDEN FROM EVEN HAVING OFFICES IN JAPAN FOR INSTANCE AND THEY STILL CAN'T HIRE JAPANESE LAWYERS AS ASSOCIATES OR PARTNERS RECENTLY FRANCE APPROVED CHANGES THAT REQUIRE ALL FOREIGN LAWYERS TO TAKE ITS BAR EXAMINATION INCLUDING THOSE WHO DON'T EVEN PRACTICE BEFORE THE LOCAL COURTS IN THE U. S. A FEW BIG STATES INCLUDING NEW YORK AND CALIFORNIA IMPOSE CERTAIN LIMITED RESTRICTIONS ON FOREIGN LAW FIRMS MOST STATES HOWEVER HAVE NO REGULATIONS CONCERNING LAWYERS FROM ABROAD U. S. LAWYERS WITH OVERSEAS INTERESTS SEE A COMMON THREAD OF PROTECTIONISM RUNNING THROUGH THE COMPLAINTS FROM RUSSIA AND ELSEWHERE THE LOCAL BAR LIKE ANY OTHER LOCAL BAR DOESN'T WANT TO HAVE THE GOOD BUSINESS CREAMED OFF BY THE FOREIGNERS SAYS SARAH CAREY OF STEPTOE AND JOHNSON A WASHINGTON FIRM WITH A MOSCOW OFFICE IN RUSSIA LAW IN GENERAL AND LAWYERS IN PARTICULAR HAVE HISTORICALLY GARNERED EVEN LESS RESPECT THAN IN THE U. S. FOR ONE THING COMMERCIAL LAW DIDN'T EXIST UNDER A CENTRALLY PLANNED ECONOMY AND UNDER THE STALINIST REGIME LAWS WERE MORE LIKELY TO BE MADE AFTER THE FACT TO FIT THE CRIME AS A CAREER LAW WAS POORLY PAID AND POORLY RESPECTED BEFORE PEOPLE WERE SHOCKED WHEN GORBACHEV BECAME A LAWYER SAYS MARSHALL I. GOLDMAN ASSOCIATE DIRECTOR OF THE RUSSIAN RESEARCH CENTER AT HARVARD UNIVERSITY BUT NOW U. S. LAWYERS HAVE APPARENTLY TAUGHT THE RUSSIANS A VALUABLE LESSON SUDDENLY THEY SEE WHAT THEY COULD BE DOING AND THEIR REASONING IS IF WE ONLY COULD THROW OUT THE WESTERN LAWYERS SOME OF THAT BUSINESS WILL COME OUR WAY SAYS MR. GOLDMAN CERTAINLY SOME U. S. LAWYERS WENT TO RUSSIA WITH ALTRUISTIC INTENTIONS MANY HAVE SPENT TIME TRAINING JUDGES HELPING FRAME A NEW CONSTITUTION OR DEVELOPING A NEW COMMERCIAL CODE U. S. JUDGES ARE TEACHING RUSSIANS THAT BANKRUPTCY IS NOT NECESSARILY A BAD THING MUCH OF THE WORK IS BEING COORDINATED THROUGH A NONPROFIT AMERICAN BAR ASSOCIATION PROJECT IN CONJUNCTION WITH A GRANT FROM THE AGENCY FOR INTERNATIONAL DEVELOPMENT AMONG THE DOZEN OR SO PROFIT SEEKING U. S. FIRMS WITH OFFICES IN RUSSIA ARE BAKER AND MCKENZIE AND COUDERT BROTHERS AND SEVERAL TEXAS FIRMS INCLUDING BAKER AND BOTTS AND VINSON AND ELKINS WITH ENERGY CLIENTS WHO HOPE TO HELP REVITALIZE THE HUGE RUSSIAN OIL AND GAS INDUSTRY ANOTHER U. S. FIRM AKIN GUMP STRAUSS HAUER AND FELD PLANS TO OPEN A RUSSIAN OFFICE THIS SUMMER PARTNER ROBERT STRAUSS A FORMER U. S. AMBASSADOR TO MOSCOW VOICES CONCERN ABOUT RESTRICTIONS THE RUSSIANS HE SAYS NEED TO BE ENCOURAGING ANYTHING THAT ASSISTS IN OUTSIDE CAPITAL COMING INTO THAT COUNTRY AND LAW FIRMS ARE AN INTEGRAL PART OF THAT THE U. S. FIRMS ACKNOWLEDGE THAT THEIR WAGES ARE LOW BY U. S. STANDARDS ALTHOUGH ESTIMATES VARY WIDELY THE MEDIAN WAGE FOR RUSSIAN LAWYERS WORKING FOR BIG U. S. FIRMS IS BELIEVED BY SOME OBSERVERS TO BE ABOUT TWO THOUSAND DOLLARS A MONTH NOT MUCH MORE THAN WHAT A STARTING LAWYER AT A TOP NEW YORK FIRM MAKES IN A WEEK ALTHOUGH NO PRECISE FIGURES ARE AVAILABLE IT IS BELIEVED THAT U. S. FIRMS IN RUSSIA BILL AT A SLIGHTLY LOWER RATE THERE THAN AT HOME THE DISPARITY ISN'T GREATER ONE U. S. LAWYER SAYS BECAUSE THE COSTS OF OPENING AND OPERATING AN OFFICE IN RUSSIA ARE HIGH AS FOR WAGES PAID TO LOCAL LAWYERS THE AMERICANS GENERALLY CALL THE COMPENSATION GENEROUS QUOTE THE LEVEL AT WHICH THE RUSSIAN LAWYERS ARE COMPENSATED PUTS ALL OF THEM IN THE TOP ONE PERCENT OF RUSSIANS BY LOCAL STANDARDS QUOTE SAYS JOHN HUHS A RUSSIA EXPERT AT THE NEW YORK FIRM OF LEBOEUF LAMB GREENE AND MACRAE THEY ARE EXTRAORDINARILY WELL COMPENSATED LEBOEUF LAMB HAS A POLICY OF PAYING PREVAILING WAGES REGARDLESS OF LOCATION ACCORDING TO MR. HUHS WHEN RUSSIAN LAWYERS SPEND SUMMERS WORKING FOR THE FIRM IN NEW YORK HE SAYS THEY ARE PAID THE SAME AS THE AMERICANS UNDER MR. KALMYKOV'S PROPOSED DECREE U. S. LAWYERS WOULD BE BARRED FROM PROVIDING CONSULTING SERVICES ON RUSSIAN LAW AND FROM DOING WORK ON CERTAIN KINDS OF ARBITRATION CASES STILL OTHER TALK HAS BEEN OF A SYSTEM OF REGISTERING OR ACCREDITING FOREIGN LAWYERS THE PROPOSALS ARE NOW EXPECTED TO BE CONSIDERED BY THE NEW RUSSIAN PARLIAMANT AMERICANS SAY SUCH CURBS COULD HURT THE CONSULTING BAN COULD PREVENT ATTORNEYS FROM ADVISING ON CERTAIN ASPECTS OF MAJOR INTERNATIONAL TRANSACTIONS LIMITS ON ARBITRATION AN INCREASINGLY POPULAR WAY OF RESOLVING BUSINESS DISPUTES ALSO COULD BE DAMAGING SAYS EUGENE LAWSON PRESIDENT OF THE U. S. RUSSIA BUSINESS COUNCIL AN UMBRELLA GROUP FOR U. S. COMPANIES AND LAW FIRMS OPERATING IN RUSSIA ARBITRATION IS NEAR AND DEAR TO THE HEARTS OF A LOT OF LAW FIRMS HE SAYS A STATE JUDGE IN CALIFORNIA THREW OUT A SEVEN POINT FIVE MILLION DOLLAR LIBEL AWARD AGAINST NEW YORK TIMES COMPANY ON GROUNDS THAT THE JURY'S VERDICT IN OCTOBER WAS FACTUALLY INCONSISTENT AND EXCESSIVE THE CASE INVOLVED LEONARD M. ROSS A BEVERLY HILLS BUSINESSMAN WHO CLAIMED HE WAS LIBELED IN NINETEEN EIGHTY EIGHT ARTICLES PUBLISHED IN THE SANTA BARBARA NEWS PRESS OWNED BY THE TIMES COMPANY THE JURY AWARDED FIVE MILLION DOLLARS FOR DAMAGE TO MR. ROSS'S REPUTATION AND TWO POINT FIVE MILLION DOLLARS FOR EMOTIONAL DISTRESS MR. ROSS CONTENDED THAT THE NEWSPAPER WRONGLY LINKED HIM IN TWO ARTICLES TO A FEDERAL INVESTOR FRAUD INVESTIGATION OF A FORMER BUSINESS PARTNER LOS ANGELES SUPERIOR COURT JUDGE HARVEY A. SCHNEIDER FOUND FOUR RESPONSES BY THE JURY ON A MULTIQUESTION VERDICT FORM TO BE FACTUALLY INCONSISTENT HE ALSO RULED THAT TWO POINT FIVE MILLION DOLLARS FOR EMOTIONAL DAMAGE WAS UNWARRANTED BECAUSE MR. ROSS NEVER SOUGHT PROFESSIONAL CARE AND THERE WAS NO EVIDENCE OR TESTIMONY ALLEGING PERMANENT INJURY HOWEVER JUDGE SCHNEIDER SAID HE AGREED IN SOME RESPECTS THAT THE PAPER WAS NEGLIGENT IN PREPARING THE ARTICLES THE UNWILLINGNESS OF THE INDIVIDUAL DEFENDANTS AT TRIAL TO CONCEDE EVEN THE POSSIBILITY THAT A MISTAKE HAD BEEN MADE BY THEM UNDOUBTEDLY CONTRIBUTED TO THE EXCESSIVE JURY AWARD HE WROTE REX HEINKE THE LAWYER FOR THE TIMES COMPANY IN LOS ANGELES SAID THAT WHILE THE COMPANY WAS GRATIFIED BY THE JUDGE'S DECISION HE DISAGREED WITH THE FINDING OF PARTIAL FAULT SINCE THE JUDGE DOESN'T SAY WHY HE THINKS WE WERE NEGLIGENT I DON'T KNOW HOW TO RESPOND OTHER THAN WE DISAGREE SAID MR. HEINKE LAWYERS FOR MR. ROSS COULD NOT BE REACHED MILO GEYELIN CONTRIBUTED TO THIS ARTICLE AS PRESIDENT CLINTON'S UPBEAT ENTOURAGE PULLED OUT OF TOWN THE RIFT IN RUSSIA'S GOVERNMENT SUDDENLY BROKE INTO THE OPEN AS ECONOMIC REFORM CZAR YEGOR GAIDAR ANNOUNCED HIS RESIGNATION FOLLOWING TWO DAYS OF MEETINGS WITH TOP RUSSIAN OFFICIALS MR. CLINTON HAD WAXED CONFIDENT THAT RUSSIA'S TEAM OF FREE MARKET REFORMERS WOULD STEAM FORWARD BUT MR. GAIDAR'S ANNOUNCEMENT YESTERDAY THAT HE WON'T SERVE IN PRIME MINISTER VIKTOR CHERNOMYRDIN'S CABINET REVEALS THE FRUSTRATION RUSSIA'S RADICAL REFORMERS ARE FEELING AS THE GOVERNMENT PURSUES A MORE CENTRIST TACK QUOTE GAIDAR DIDN'T WANT TO SERVE AS WINDOW DRESSING FOR THE CHERNOMYRDIN GOVERNMENT QUOTE SAYS A FOREIGN ADVISER WHO WORKS CLOSELY WITH MR. GAIDAR IT'S A TRAGEDY FOR RUSSIA'S REFORMS IN A RESIGNATION LETTER TO RUSSIAN PRESIDENT BORIS YELTSIN THE TEXT OF WHICH WAS PUBLISHED BY RUSSIA'S INTERFAX NEWS AGENCY MR. GAIDAR COMPLAINED OF UNCEASING PRESSURE ON THE PART OF CONSERVATIVE POLITICAL CIRCLES AGAINST REFORMS I CANNOT BE RESPONSIBLE FOR REFORMS WITHOUT HAVING LEVERS FOR IMPLEMENTING AN ECONOMIC POLICY WHICH I AM SURE IS CORRECT HE WROTE MR. GAIDAR SINGLED OUT TWO RECENT GOVERNMENT DECISIONS THAT HE PARTICULARLY OPPOSES ONE WAS THE POTENTIALLY INFLATIONARY AGREEMENT TO ALLOW THE NEWLY INDEPENDENT REPUBLIC OF BELARUS TO USE AND EVEN ISSUE RUSSIAN RUBLES THE OTHER WAS A DECISION TO SPEND FIVE HUNDRED MILLION DOLLARS ON A NEW PARLIAMENT CENTER SINCE THEATRICS ARE A PART OF RUSSIAN POLITICAL LIFE IT IS POSSIBLE THAT MR. GAIDAR WHO IS CURRENTLY A VICE PREMIER WILL RECONSIDER HIS DECISION AND STAY ON ESPECIALLY IF HIS ECONOMIC PORTFOLIO IS STRENGTHENED AT THE SAME TIME EVEN IF MR. GAIDAR STICKS TO HIS DECISION TO QUIT IT WON'T MEAN AN END TO RUSSIA'S REFORMS OR THAT THE ECONOMY WILL RETURN TO STATE CONTROL EVEN WITHOUT MR. GAIDAR THERE APPEARS TO BE A CONSENSUS IN FAVOR OF BOTH PRIVATIZATION AND THE MOVE TO A MARKET ECONOMY BUT THE PACE OF THAT SHIFT IS CRITICAL WITH MR. GAIDAR OUT REFORMS ARE LIKELY TO PROCEED MORE GRADUALLY INFLATION WHICH FELL TO TWELVE PERCENT A MONTH IN DECEMBER FROM THIRTY PERCENT A MONTH EARLIER LAST YEAR COULD SPURT UPWARD AGAIN IN SHORT RUSSIA'S GOVERNMENT SEEMS TO HAVE LOST ITS WAY MR. YELTSIN CONTINUES TO CALL FOR FREE MARKET REFORM BUT HE IS SURROUNDED BY A CABINET MADE UP OF AN UNWIELDY COALITION OF RADICAL REFORMERS AND CAUTIOUS STATE TECHNOCRATS THERE WAS SPECULATION YESTERDAY THAT TWO OTHER RADICAL REFORMERS WOULD ALSO RESIGN BORIS FYODOROV THE FINANCE MINISTER AND ANATOLY CHUBAIS RUSSIA'S PRIVATIZATION CZAR THAT WAS TEMPERED SOMEWHAT BY COUNTERSPECULATION THAT MESSRS YELTSIN AND CHERNOMYRDIN MIGHT DECLINE TO ACCEPT THE RESIGNATIONS OF MR. GAIDAR OR ANY OTHER REFORMERS MR. CHERNOMYRDIN IS SCHEDULED TO NAME A NEW CABINET TOMORROW THE GOVERNMENT RESHUFFLING IS TAKING PLACE AS RUSSIA'S NEWLY ELECTED PARLIAMENT BEGINS TO FIND ITS PLACE IN THE POLITICAL ORDER THE LEGISLATURE WHICH CONVENED LAST WEEK IS CERTAIN TO GIVE MR. YELTSIN FITS ON FRIDAY THE STATE DUMA PARLIAMENT'S MORE POWERFUL LOWER HOUSE ELECTED AS ITS CHAIRMAN IVAN RYBKIN A FORTY SEVEN YEAR OLD ENGINEER AND FORMER COMMUNIST BUREAUCRAT FROM VOLGOGRAD PARLIAMENT'S UPPER HOUSE THE FEDERATION COUNCIL APPEARS MORE SUPPORTIVE OF MR. YELTSIN'S REFORMS ITS NEWLY ELECTED CHAIRMAN IS A YELTSIN ALLY VLADIMIR SHUMEIKO BUT THE GAP BETWEEN THE TWO HOUSES AND SPLITS WITHIN THE GOVERNMENT ARE LIKELY TO MEAN LONG TERM POLITICAL PARALYSIS SOME DEPUTIES ALREADY ARE WONDERING ALOUD WHEN MR. YELTSIN WILL TRY TO DISSOLVE THE LEGISLATURE HE DISSOLVED THE PREVIOUS ONE IN SEPTEMBER BUT NEEDED THE MILITARY TO BACK UP THE ACTION TURMOIL IN THE GOVERNMENT COMPLICATES THE CLINTON ADMINISTRATION'S EFFORTS TO PROVIDE TANGIBLE ASSISTANCE TO RUSSIA MR. CLINTON ANNOUNCED THAT HE PLANS TO ASK CONGRESS FOR NINE HUNDRED MILLION DOLLARS IN AID FOR RUSSIA IN THE BUDGET HE WILL SEND TO CONGRESS FOR FISCAL NINETEEN NINETY FIVE WHICH WILL BEGIN OCTOBER FIRST THIS WOULD BE ON TOP OF THE ROUGHLY THREE BILLION DOLLARS THAT CONGRESS HAS ALREADY VOTED TO HELP RUSSIA AND OTHER FORMER SOVIET REPUBLICS FINANCE THE TRANSITION TO A FREE MARKET ECONOMY THIS YEAR MR. CLINTON AND HIS AIDES ALSO REVEALED A SERIES OF OTHER INITIATIVES INVOLVING ENERGY TRADE AND DEBT RESTRUCTURING TO HELP RUSSIA CUSHION THE UNEMPLOYMENT AND OTHER PAIN THAT THE TRANSITION TO A MODERN ECONOMY IS CAUSING FOR EXAMPLE IN A TELEVISED ADDRESS AND QUESTION AND ANSWER PERIOD WITH RUSSIAN PEOPLE FRIDAY MR. CLINTON REVEALED THAT WE ARE WORKING HARD TO GET ASSISTANCE TO THE NATIONS WHICH BUY YOUR ENERGY BECAUSE SO MANY OF THEM CANNOT AFFORD TO PAY FOR IT UNDER COMMUNISM MOSCOW SOLD OIL AND COAL TO SOVIET BLOC COUNTRIES AT LESS THAN MARKET PRICES NOW THAT MOSCOW IS SELLING RESOURCES AT MARKET PRICES THE FORMERLY SUBSIDIZED CUSTOMERS CAN'T AFFORD THE FUEL ONE WAY THE WEST HELPED RUSSIA LAST YEAR WAS TO RESTRUCTURE FIFTEEN BILLION DOLLARS OF REQUIRED DEBT PAYMENTS SO THAT MOSCOW DIDN'T HAVE TO DIVERT MONEY FROM DOMESTIC PURPOSES IT'S ALMOST CERTAIN THAT THE NATIONS THAT HAVE LENT RUSSIA BILLIONS OF DOLLARS WILL AGAIN AGREE TO DELAYED PAYMENTS ALTHOUGH MOSCOW'S CURRENT ONE POINT NINE BILLION DOLLAR PAYMENT OF INTEREST AND PRINCIPAL MAY RISE THE GROUP OF SEVEN INDUSTRIALIZED NATIONS MAY BEGIN TO WORK OUT THE TERMS OF A RESTRUCTURING NEXT MONTH MR. CLINTON AND HIS AIDES STRESSED THAT THEY WANT TO LAUNCH PROGRAMS THAT PROVIDE RELATIVELY QUICK CONCRETE EVIDENCE OF THE BENEFITS OF MARKET REFORM IN A RAPID FOLLOW UP TO MR. CLINTON'S VISIT THE U. S. WILL ANNOUNCE TODAY THE INAUGURATION OF THE RUSSIAN AMERICAN ENTERPRISE FUND THE PRIVATE NONPROFIT FUND PLANS TO DIRECTLY INVEST IN AND RAISE FINANCING FOR SMALL AND MEDIUM SIZED RUSSIAN ENTERPRISES THAT HAVE RECENTLY BEEN PRIVATIZED BASED ON SIMILAR FUNDS SET UP IN CENTRAL EUROPE THE AGENCY HAS INITIAL CAPITAL OF THREE HUNDRED FORTY MILLION DOLLARS PROVIDED BY THE U. S. GOVERNMENT AND HOPES TO RAISE ADDITIONAL PRIVATE SECTOR FUNDING HEADING THE FUND IS ROBERT TOWBIN AN INVESTMENT BANKER AND A MANAGING DIRECTOR OF LEHMAN BROTHERS INCORPORATED WHO WILL LOOK FOR PROFITABLE LONG TERM INVESTMENTS ESPECIALLY IN RUSSIAN PRODUCERS WHO ARE ABLE TO EXPORT OUR OBJECTIVE IS TO PROVE TO THE OUTSIDE WORLD WHICH IS RATHER CAUTIOUS THAT INVESTMENT CAN BE DONE EFFECTIVELY IN RUSSIA MR. TOWBIN SAID IN AN INTERVIEW IN MOSCOW THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CAPITAL RE LIMITED LIFE COMPANY SEVENTY FIVE MILLION DOLLARS OF CUMULATIVE MONTHLY INCOME PREFERRED SHARES PRICED WITH A SEVEN POINT SIX FIVE PERCENT DIVIDEND YIELD THE THREE MILLION SHARES WERE PRICED AT TWENTY FIVE DOLLARS EACH ACCORDING TO M. C. M. CORPORATEWATCH THE PREFERRED SHARES WHICH ARE NONCALLABLE FOR FIVE YEARS ARE RATED SINGLE A ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE A MINUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY CAPITAL RE LIMITED LIFE COMPANY IS A UNIT OF CAPITAL RE CORPORATION FEDERAL HOME LOAN MORTGAGE CORPORATION ONE HUNDRED FIFTY MILLION DOLLARS OF NOTES DUE JANUARY TWENTY FIFTH NINETEEN NINETY NINE PRICED AT PAR TO YIELD FIVE POINT THREE FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF TWENTY THREE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY PAGING NETWORK INCORPORATED THREE HUNDRED MILLION DOLLARS OF SENIOR SUBORDINATED NOTES DUE FEBRUARY FIFTEENTH TWO THOUSAND SIX PRICED AT PAR TO YIELD EIGHT POINT EIGHT SEVEN FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLE B. TWO BY MOODY'S AND SINGLE B. ONE BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY W. R. BERKLEY CORPORATION ONE HUNDRED FIFTY MILLION DOLLARS OF CUMULATIVE PERPETUAL PREFERRED STOCK PRICED WITH A SEVEN POINT THREE SEVEN FIVE PERCENT DIVIDEND YIELD THE SHARES WERE PRICES AT TWENTY FIVE DOLLARS EACH ACCORDING TO M. C. M. CORPORATEWATCH NONCALLABLE FOR FIVE YEARS THE ISSUE IS RATED SINGLE A THREE BY MOODY'S AND SINGLE A ONE BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY LINCOLN SNACKS COMPANY INITIAL OFFERING OF TWO POINT TWO MILLION COMMON SHARES PRICED AT FOUR DOLLARS AND FIFTY CENTS EACH THROUGH UNDERWRITERS LED BY ALLEN AND COMPANY PAPA JOHN'S INTERNATIONAL INCORPORATED ONE POINT TWO MILLION COMMON SHARES PRICED AT TWENTY SIX DOLLARS AND TWENTY FIVE CENTS EACH ACCORDING TO THE COMPANY THE LEAD UNDERWRITER IS MONTGOMERY SECURITIES J. P. REALTY INCORPORATED INITIAL OFFERING OF ELEVEN POINT THREE MILLION COMMON SHARES PRICED AT SEVENTEEN DOLLARS AND FIFTY CENTS EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY FEDERAL HOME LOAN MORTGAGE CORPORATION FOUR HUNDRED MILLION DOLLARS OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INCORPORATED THE OFFERING SERIES ONE THOUSAND SIX HUNDRED SEVENTY EIGHT IS BACKED BY THE AGENCY'S FIFTEEN YEAR SIX PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SIX POINT SIX PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF ONE HUNDRED SEVENTY NINE MONTHS GOLDLION CAPITAL LIMITED HONG KONG PARENT FIFTY MILLION DOLLARS OF CONVERTIBLE EUROBONDS DUE FEBRUARY FIRST NINETEEN NINETY NINE AT ISSUE PRICE PAR WITH COUPON INDICATED BETWEEN FOUR POINT SEVEN FIVE PERCENT AND FIVE POINT TWO FIVE PERCENT VIA C. S. FIRST BOSTON TERMS FIXED ON OR BEFORE JANUARY TWENTIETH CONVERTIBLE INTO ORDINARY SHARES OF GOLDLION HOLDINGS AT INDICATED PREMIUM FIFTEEN PERCENT TO EIGHTEEN PERCENT AND CONVERSION PERIOD RUNS FROM MARCH FIRST TO JANUARY FIFTEENTH NINETEEN NINETY NINE CALLABLE FROM SECOND YEAR AT ONE HUNDRED THREE DECLINING ONE PERCENT PER ANNUM SUBJECT TO SHARE PRICE BEING AT LEAST ONE HUNDRED FIFTY PERCENT OF CONVERSION PRICE FEES TWO POINT FIVE INTEREST PAYABLE SEMIANNUALLY SWEDEN SOVEREIGN FIVE HUNDRED MILLION DUTCH GUILDERS OF FIVE POINT SEVEN FIVE PERCENT EUROBONDS DUE FEBRUARY ELEVENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT TWO FIVE VIA RABOBANK NEDERLAND REOFFERED AT NINETY NINE POINT FIVE FIVE TO YIELD FIVE POINT EIGHT ONE ONE PERCENT A MARGIN OF TWENTY BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE TOYOBO COMPANY JAPAN FIVE BILLION YEN OF FLOATING RATE EURONOTES DUE JANUARY TWENTIETH NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA MITSUBISHI FINANCE INTERNATIONAL P. L. C. INTEREST PAYABLE QUARTERLY AND FLOATS AT TWENTY SEVEN POINT FIVE BASIS POINTS OVER THREE MONTH YEN LONDON INTERBANK OFFERED RATE FEES ZERO POINT TWO QUOTE EVERYBODY'S GOT SOMEBODY WHO DON'T LIKE 'EM QUOTE SAYS A T. V. DETECTIVE EVERY FAMILY'S GOT A DARK CLOUD JUDGING BY THIS WEEK'S T. V. FARE SOME FAMILIES SEEM TO CARRY AROUND THEIR OWN PRIVATE THUNDERSTORM THAT'S RIGHT IT'S DYSFUNCTIONAL FAMILIES WEEK ON TELEVISION A QUIET SUNDAY AFTERNOON IN A SLEEPY SOUTHERN TOWN THE BIRDS ARE CHIRPING IN THE TREES CHURCH HAS JUST LET OUT AND IT'S TIME FOR A MANIACAL SNIPER TO LINE UP A MOTHER AND DAUGHTER IN THE CROSS HAIRS OF HIS RIFLE AND BLOW THEM AWAY GANGLANDSTYLE THESE ARE THE OPENING MOMENTS OF THE MINISERIES IN THE BEST OF FAMILIES MARRIAGE PRIDE AND MADNESS C. B. S. PART TWO TUESDAY NINE TO ELEVEN P. M. E. S. T. A SAGA OF ROMANCE GONE REALLY REALLY SOUR FLASHING BACK TO NINETEEN SEVENTY A FLIRTATIOUS SOUTHERN BELLE FROM THE RIGHT KIND OF FAMILY SUSIE SHARP NEWSOM KELLY MCGILLIS IS ABOUT TO MARRY THE STAR OF THE BASKETBALL TEAM TOM LEARY KEITH CARRADINE BY THE WAY THEY SMOOCH IN HIS CONVERTIBLE ROARING DOWN THE HIGHWAY WE CONCLUDE THEY ARE DEEPLY IN LOVE AND DESTINED FOR A LIFETIME OF HAPPINESS IF THEY CAN KEEP THEIR EYES ON THE ROAD BUT RIGHT FROM THE START THERE ARE HINTS FOREBODINGS UNDERCURRENTS OF TENSION TOM'S STERN CRAB APPLE OF A MOTHER LOOKS SUSIE UP AND DOWN AND FROWNS I'M HIS MOTHER I KNOW WHAT'S BEST FOR HIM THE SIMPLE FACT IS TOM'S NOT READY TO GET MARRIED THE WEDDING DAY BRINGS A REAL SIGN OF TROUBLE A BRIDESMAID'S DRESS IS WRINKLED AND THE HIGH STRUNG SUSIE FLIPS OUT WHY ARE YOU DETERMINED TO RUIN EVERYTHING SHE SCREAMS AT HER OWN MOTHER TOM'S MOM KNOCKS BACK ANOTHER DRINK AND SHAKES HER HEAD QUOTE I'VE LOST MY SON QUOTE SHE SAYS I CURSE THE DAY I EVER MET THAT GIRL A DECADE OF MARRIED LIFE FLIES BY AND TOM AND SUSIE NOW HAVE TWO KIDS CONVENIENT PINT SIZED PUNCHING BAGS FOR SUSIE'S INCREASINGLY FREQUENT OUTBURSTS OF FRUSTRATION AND ANGER SHE'S NOT HAPPY WITH THEIR NEW HOME IN NEW MEXICO SHE'S NOT HAPPY WITH THEIR MARRIAGE IN ONE EXCRUCIATING SCENE SHE SHOVES HER SCREAMING LITTLE BOY FULLY DRESSED UNDER AN ICE COLD SHOWER AS THE WATER POUNDS DOWN ON HIM AND HE CRIES PITEOUSLY SHE ASKS WHY DO YOU MAKE ME DO THIS CLEARLY DIVORCE IS JUST A FEW PLOT TWISTS AWAY RIGHT AFTER SUSIE GOES ON A RAMPAGE AND TRASHES THEIR HOUSE YELLING I HATE YOU AT THE TOP OF HER LUNGS SHE UPENDS FURNITURE EMPTIES BOOKCASES AND GENERALLY MAKES A SHAMBLES OF HER LIFE BY THIS POINT YOU FEEL SURE YOU'VE EXPERIENCED ALL THE MISERY AND MET ALL THE UNPLEASANT CHARACTERS THAT ANY ONE MINISERIES CAN THROW AT YOU BUT NO IN THE BEST OF FAMILIES IS JUST GETTING GOING BACK HOME IN NORTH CAROLINA SUSIE GETS MORE AND MORE BITTER AND LAUNCHES A NASTY CUSTODY BATTLE TO KEEP TOM AWAY FROM THEIR KIDS THEN SHE TAKES UP WITH HER FIRST COUSIN FRITZ HARRY HAMLIN FRITZ IS WELL A LITTLE ODD WHICH IS SAYING SOMETHING IN THIS COLLECTION OF SOCIOPATHS SPORTING PARAMILITARY GEAR A BUSHY BEARD AND A FAKE MEDICAL DEGREE HE TURNS SUSIE ON TO STRESS CAPSULES AND THE STATE OF THE ART BUNKER THAT HE'S JUST BUILT QUOTE YOU KNOW WHAT'S HAPPENING IN THE WORLD TODAY QUOTE FRITZ MUTTERS IT COULD BLOW AT ANY TIME I WANT TO BE READY IN ONE TWISTED SCENE THE BEARDED SURVIVALIST SEDUCES HIS FIRST COUSIN OVER THE BARREL OF HIS RIFLE FROM HERE ON OUT THINGS GET MESSY FRITZ AND SUSIE WILL RETREAT INTO THEIR OWN PRIVATE BUNKER TOM WILL FRANTICALLY TRY TO GET CUSTODY OF THE KIDS THROUGH ALL THE LEGAL CHANNELS SUSIE WILL SNARL LINES SUCH AS I'LL DIE BEFORE I LET HIM TAKE MY BOYS FRITZ WILL BRING HER OUT TARGET SHOOTING YOU'LL BE READY FOR COMBAT BEFORE YOU KNOW IT AND THE BOYS WILL WAIL TO THEIR FATHER DADDY DADDY DON'T MAKE US GO BACK IT'S ONLY A MATTER OF TIME BEFORE THE BLOODBATH BEGINS PARENTS AND RELATIVES TOM'S AND SUSIE'S ALL SHOT TO DEATH IN THEIR HOMES ONE AFTER ANOTHER A STRING OF VIOLENT SENSELESS MURDERS THE GRAND FINALE WILL RAISE THE BODY COUNT TO NINE C. B. S. SAYS THIS PROGRAM QUOTE RIVALS ANY GREEK TRAGEDY QUOTE AND MAYBE IT'S RIGHT IF YOU'RE COUNTING THE NUMBER OF CORPSES THAT LITTER THE SCENE AT THE END BUT OTHER THAN THAT THE SOLE TRAGEDY IS THAT THIS MINISERIES GOT MADE AN UNINTERESTING STORY PACKED WITH UNHAPPY UNATTRACTIVE CHARACTERS IN THE BEST OF FAMILIES GETS MY VOTE FOR THE WORST FILM OF THE SEASON IT'S NOT JUST POORLY WRITTEN AND POORLY CONCEIVED IT'S A LURID FREAK SHOW OF A PROGRAM WHICH AIMS TO TITILLATE VIEWERS BY PLUNGING THEM HEADFIRST INTO THE MUCK TO WALLOW WITH THE PSYCHOTICS NORMALLY ONE DOESN'T GIVE AWAY THE CONCLUSION BUT LET ME SPARE YOU THE VIEWING OF THIS AFTER HOURS OF WATCHING THESE POOR INNOCENT CHILDREN CRYING THEIR EYES OUT WE'RE TREATED TO A FAST PACED FINALE IN WHICH TOM RACES TO GET HIS KIDS BACK THE POLICE CLOSE IN ON FRITZ AND SUSIE THE CRAZED PAIR LOAD THE CHILDREN INTO A CAR PACKED WITH EXPLOSIVES AND BOOM THEY SPLATTER THEMSELVES AND THE KIDS ALL OVER THE COUNTRYSIDE THAT'S IT LOOK OUT FOR THOSE FLYING HUNKS OF FLESH AT A TIME WHEN WASHINGTON IS EXAMINING NETWORK T. V. PROGRAMMING MORE AND MORE CLOSELY IN THE BEST OF FAMILIES IS EXACTLY THE KIND OF SHOW THAT WILL DRAW THE IRE OF CONGRESS NOT JUST BECAUSE IT'S BRUTISH AND VIOLENT BUT BECAUSE THAT VIOLENCE HAS NO ARTISTIC PURPOSE OTHER THAN SENSATIONALISM LEGISLATORS REALLY DON'T BELONG IN THE T. V. CRITIC BUSINESS THERE'S ENOUGH COMPETITION ALREADY BUT YOU COULDN'T BLAME THEM IF A SHOW LIKE THIS PULLAD THEM IN BEYOND THE BULLET HOLES THE BUCKETS OF BLOOD AND THE BARRAGE OF SICK EMOTIONS THIS MINISERIES RACKS UP ITS CASUALTIES OFF SCREEN AS WELL AS ON AFTER FOUR HOURS OF WATCHING IN THE BEST OF FAMILIES THE VIEWER IS LEFT FEELING STAINED SOILED JUST PLAIN YUCKY AND IT MAKES YOU WONDER IF THERE ISN'T SOMETHING DYSFUNCTIONAL AT THE C. B. S. FAMILY THAT MADE IT CHOOSE TO AIR THIS PROGRAM FREEPORT MCMORAN COPPER AND GOLD INCORPORATED NEW ORLEANS SAID IT'S MAKING A PUBLIC OFFERING OF THREE MILLION SEVEN HUNDRED FIFTY THOUSAND OF ITS NEW DEPOSITARY SHARES SERIES TWO THE SHARES ARE PRICED AT THIRTY EIGHT POINT EIGHT SEVEN FIVE DOLLARS APIECE AND ARE EXPECTED TO BRING PROCEEDS OF ONE HUNDRED THIRTY EIGHT POINT FIVE MILLION DOLLARS PROCEEDS WILL BE USED BY THE MINING COMPANY TO FINANCE CAPITAL EXPENDITURES BY ITS P. T. FREEPORT INDONESIA COMPANY SUBSIDIARY THE OFFERING IS BEING MANAGED BY LEHMAN BROTHERS INCORPORATED DOCTOR CECIL M. CHOPIN FIFTY TWO YEARS OLD FORMERLY GENERAL MANAGER OF THE EXPLORATION AND PRODUCTION TECHNOLOGY DEPARTMENT OF THIS ENERGY COMPANY WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT OF THE MIDDLE EAST FAR EAST DIVISION JOHN A. CURRY PRESIDENT OF NORTHEASTERN UNIVERSITY IN BOSTON WAS ELECTED A DIRECTOR OF THIS DISCOUNT DEPARTMENT STORE CONCERN GIVING THE BOARD SIX MEMBERS LEON E. HUTCHENS WAS NAMED PRESIDENT OF THIS PETROLEUM PRODUCTS PIPELINE COMPANY SUCCEEDING M. R. BILES SIXTY THREE YEARS OLD WHO RETIRED LAST MONTH MR. HUTCHENS FIFTY NINE WAS EXECUTIVE VICE PRESIDENT EDWARD D. DOHERTY FIFTY EIGHT REMAINS CHAIRMAN GUY C. SPENCE WAS NAMED PRESIDENT OF THE NEWLY FORMED NOBLE GAS MARKETING INCORPORATED SUBSIDIARY OF THIS OIL AND NATURAL GAS EXPLORATION COMPANY MR. SPENCE FORTY SIX YEARS OLD WAS FORMERLY A CONSULTANT TO THE PARENT COMPANY ROBERT J. MCNALLY FORTY SEVEN YEARS OLD FORMERLY CONTROLLER OF BRIDGESTONE SLASH FIRESTONE TIRE SALES WAS NAMED PRESIDENT OF BRIDGESTONE SLASH FIRESTONE OFF ROAD TIRE COMPANY A NEW UNIT OF TIRE MAKER BRIDGESTONE SLASH FIRESTONE INCORPORATED OF NASHVILLE TENNESSEE THE NEW UNIT WILL MAKE AND MARKET OFF THE ROAD TIRES ANN MARIE POSSIS A DEVELOPMENT ASSOCIATE FOR PLANNED PARENTHOOD OF MINNESOTA AND DAUGHTER OF THE COMPANY'S FOUNDER AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER ZINON C. POSSIS WHO DIED LAST YEAR WAS NAMED A DIRECTOR OF THE MEDICAL DEVICE CONCERN INCREASING BOARD MEMBERSHIP TO SEVEN HEARTENED BY RECENT IMPROVEMENTS IN BUSINESS CONDITIONS MANUFACTURERS AND CONSTRUCTION EXECUTIVES EXPECT MODEST INCREASES IN ORDERS AND EMPLOYMENT OVER THE NEXT THREE MONTHS ACCORDING TO TWO SURVEYS BY DUN AND BRADSTREET CORPORATION THE MONTHLY SURVEY OF ONE THOUSAND MANUFACTURERS NATIONWIDE INDICATED THAT THE INDUSTRY'S GLOOMY OUTLOOK HAS BEGUN TO LIFT UNTIL NOW THE MANUFACTURERS SAID THEY NOTICED BUSINESS WAS IMPROVING BUT WERE WARY OF MAKING ANY CHANGES IN OPERATIONS SAID DOUGLAS HANDLER MANAGER OF ECONOMIC ANALYSIS FOR THE BUSINESS INFORMATION SERVICES COMPANY QUOTE FINALLY MANUFACTURERS ARE BEGINNING TO FACTOR THIS GROWTH INTO THEIR EARLY PRODUCTION PLANS FOR NINETEEN NINETY FOUR QUOTE MANUFACTURING CONDITIONS AS MEASURED OVER THE PAST THREE MONTHS REACHED THEIR HIGHEST LEVEL SINCE THE SURVEY BEGAN IN NINETEEN NINETY WITH OUTPUT NEW ORDERS AND EXPORT ORDERS EACH HITTING RECORD LEVELS EXPECTATIONS FOR THE COMING THREE MONTHS FOR PRODUCTION NEW ORDERS UNFILLED ORDERS FINISHED GOODS INVENTORIES AND EXPORT ORDERS ALL CLIMBED FROM NOVEMBER LEVELS D. AND B'S INDUSTRIAL SENTIMENT INDEX WHICH PROVIDES A COMPOSITE PICTURE OF THESE THREE MONTH EXPECTATIONS CLIMBED FOUR POINTS TO TWENTY THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDING FIRMS EXPECTING INCREASES IN ORDERS PRODUCTION AND OTHER FACETS OF MANUFACTURING MINUS THE PERCENTAGE EXPECTING DECREASES THE ONLY DOWN SIDE TO THE SURVEY IS THAT MANY MANUFACTURERS FORESEE AN INCREASE IN THEIR FINISHED GOODS INVENTORIES SAID MR. HANDLER IF THE DEMAND FOR THESE GOODS DOES NOT MATERIALIZE WE MAY SEE SOME CUTBACKS IN THE SECOND QUARTER CONSTRUCTION FIRMS REPORTED THEY ARE IN THE BEST SHAPE SINCE THE END OF THE RECESSION ALMOST THREE YEARS AGO SAID MR. HANDLER EXPECTATIONS FOR ADDITIONAL IMPROVEMENTS SUGGEST THAT THIS BOOM WILL CONTINUE THROUGH THE FIRST QUARTER THE CONSTRUCTION SURVEY INCLUDES INDEXES OF NEW ORDERS EMPLOYMENT AND PRICES INDEXES OF CURRENT CONDITIONS IMPROVED FOR BOTH NEW ORDERS AND EMPLOYMENT WHILE REMAINING UNCHANGED FROM THE MONTH AGO FIGURES FOR PRICES ALL SHOWED SIZABLE IMPROVEMENTS FROM A YEAR AGO THE INDEXES OF EXPECTATIONS FOR THE COMING THREE MONTHS ALSO LOGGED IMPROVEMENTS ACROSS THE BOARD WITH MODEST IMPROVEMENTS EXPECTED IN EMPLOYMENT MOST OF THIS GROWTH IS FUELED BY NEW SINGLE FAMILY HOUSING CONSTRUCTION EXPLAINED MR. HANDLER QUOTE GROWTH IN THE OTHER AREAS STILL REMAINS FLAT QUOTE THE PRIVATE BANKING COMPANY NAMED TWO FORMER SENIOR MANAGERS AS GENERAL PARTNERS HAMPTON S. LYNCH JUNIOR FORTY TWO YEARS OLD DEPARTMENT HEAD OF INTERNATIONAL BANKING AND INVESTMENT SERVICES IN NEW YORK AND A. HEATON ROBERTSON FIFTY RESPONSIBLE FOR THE COMMERCIAL BANKING AND CORPORATE FINANCE IN BOSTON ROBERT B. MCKERSIE SIXTY FOUR YEARS OLD DEPUTY DEAN AND SOCIETY OF SLOAN FELLOWS PROFESSOR AT THE SLOAN SCHOOL OF MANAGEMENT AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY WAS NAMED A NEW DIRECTOR OF THIS STEEL HOLDING CONCERN AND OF ITS INLAND STEEL COMPANY UNIT THE MOVE INCREASES THE SIZE OF BOTH BOARDS TO ELEVEN MEMBERS JOHN D. ROACH WAS ELECTED A DIRECTOR OF THIS GEOTHERMAL POWER PLANT OPERATOR SUCCEEDING ARNOLD L. JOHNSON SIXTY WHO RESIGNED MR. ROACH FIFTY IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF FIBREBOARD CORPORATION PROCTER AND GAMBLE COMPANY DISCLOSING SOME SPECIFICS OF THE RESTRUCTURING PROGRAM ANNOUNCED LAST SUMMER SAID IT WILL CLOSE FOUR PLANTS AND ELIMINATE PRODUCTION LINES AT SIX OTHERS ABOUT ONE THOUSAND EIGHT HUNDRED EMPLOYEES WILL BE AFFECTED THROUGH LAYOFFS EARLY RETIREMENTS OR TRANSFERS THE CONSUMER PRODUCTS COMPANY SAID THE CUTS REPRESENT ABOUT HALF OF THE NORTH AMERICAN MANUFACTURING POSITIONS THE COMPANY SAID ULTIMATELY WILL BE ELIMINATED AS PART OF ITS PLAN TO SHUT THIRTY PLANTS AND CUT THIRTEEN THOUSAND JOBS OR TWELVE PERCENT OF ITS WORK FORCE WORLD WIDE THE PLANTS TO BE CLOSED ARE A DISHWASHING DETERGENT AND GLYCERIN PLANT IN BALTIMORE TO BE SHUT BY JULY NINETEEN NINETY FIVE A SOAP AND FATTY ACID PLANT IN QUINCY MASSACHUSETTS TO BE SHUT BY JANUARY NINETEEN NINETY FIVE A FOLGERS COFFEE PLANT IN SOUTH SAN FRANCISCO CALIFORNIA TO CLOSE BY JULY NINETEEN NINETY FOUR AND A HEALTH AND BEAUTY CARE PRODUCTS PLANT IN POINTE CLAIRE QUEBEC TO BE PHASED OUT BY JANUARY NINETEEN NINETY FIVE PRODUCTION LINES WILL BE SHUT WITHIN OTHER PLANTS THAT WILL REMAIN OPEN A LAUNDRY AND HOUSEHOLD CLEANING PRODUCTS LINE WILL BE PHASED OUT BY YEAR END AT THE SACRAMENTO CALIFORNIA PLANT WHICH STILL WILL PRODUCE INDUSTRIAL CHEMICALS MEANWHILE HEALTH AND BEAUTY CARE PRODUCTS AND FABRIC SOFTENERS WILL BE ELIMINATED AT THE HAMILTON ONTARIO PLANT WHICH WILL CONTINUE TO PRODUCE TOILET SOAP LIQUID DETERGENTS AND HOUSEHOLD CLEANING PRODUCTS INCONTINENCE PRODUCTS WILL BE TRANSFERRED FROM THE MODESTO CALIFORNIA PLANT WHERE PRODUCTION OF PAMPERS AND LUVS DIAPERS WILL BE QUOTE STREAMLINED QUOTE OVER THE NEXT EIGHTEEN MONTHS UNDISCLOSED LINES WILL BE ELIMINATED THOUGH NO JOBS WILL BE CUT AT THREE ADDITIONAL LOCATIONS IOWA CITY IOWA WHICH MAKES HEALTH AND BEAUTY CARE PRODUCTS KANSAS CITY KANSAS WHICH MAKES SOAP AND GREENSBORO N. C. WHICH MAKES HEALTH CARE PRODUCTS THE COST OF THE MOVES WAS INCORPORATED IN THE ONE POINT FIVE BILLION DOLLAR RESERVE P. AND G. ESTABLISHED IN JULY NINETEEN NINETY THREE TO COVER PLANT CONSOLIDATIONS AND ORGANIZATIONAL RESTRUCTURING AT THAT TIME THE COMPANY NOTED THAT ONE POINT TWO BILLION DOLLARS OF THAT RESERVE WOULD FUND CHANGES TO ITS WORLD WIDE MANUFACTURING OPERATIONS INCLUDING THE CLOSURE OF TWENTY PERCENT OF ITS MANUFACTURING OPERATIONS OVER A PERIOD OF THREE TO FOUR YEARS CHARLES S. WEHLE FORTY SIX YEARS OLD EXECUTIVE VICE PRESIDENT SALES AND MARKETING OF THE GENESEE BREWING COMPANY UNIT WAS NAMED TO THE ADDITIONAL AND NEWLY CREATED POST OF SENIOR VICE PRESIDENT OF THIS HOLDING COMPANY WITH INTERESTS IN BEER AND ALE DEHYDRATED FOOD PRODUCTS REAL ESTATE INVESTMENT AND EQUIPMENT LEASING APPAREL COMPANIES PROBABLY WILL REPORT WEAKER THAN EXPECTED FOURTH QUARTER EARNINGS BECAUSE OF CONSERVATIVE RETAIL ORDERS OF FALL AND CHRISTMAS MERCHANDISE ANALYSTS NOTED THAT RETAILERS CUT BACK ON THEIR WHOLESALE ORDERS FROM CLOTHING MAKERS LAST FALL AS SHOPPERS CONTINUED TO SPEND CAUTIOUSLY ON CLOTHES THEY ALSO SAID THAT SPOTTY RETAIL SALES THROUGHOUT NINETEEN NINETY THREE FORCED APPAREL COMPANIES TO LIQUIDATE EXCESS INVENTORIES AT LOWER THAN EXPECTED PROFIT MARGINS WHICH DRAGGED DOWN FOURTH QUARTER EARNINGS QUOTE SALES OF WOMEN'S APPAREL ARE STILL WEAK AND OVERALL THE FOURTH QUARTER IS GOING TO BE DISAPPOINTING FOR APPAREL QUOTE SAID JOSIE ESQUIVEL AN APPAREL ANALYST AT LEHMAN BROTHERS INCORPORATED WHO ESTIMATES THAT MOST APPAREL COMPANIES WILL REPORT FOURTH QUARTER EARNINGS LOWER THAN A YEAR AGO AFTER MONTHS OF STEADY GROWTH MAKERS OF T. SHIRTS SWEATS AND OTHER BASIC APPAREL EXPERIENCED A SALES SLOWDOWN IN THE FOURTH QUARTER IN THE COMMODITY APPAREL BUSINESS WHERE EVERYBODY IS MAKING VIRTUALLY THE SAME THING AND THERE IS AN OVERSUPPLY OF INVENTORY STORES ARE GOING TO PICK THE PRODUCTS THAT COST LESS AND THAT WEAKENS MARGINS FOR APPAREL COMPANIES SAID TODD SLATER AN APPAREL ANALYST AT U. B. S. SECURITIES DEBORAH BRONSTON OF PRUDENTIAL SECURITIES IS PREDICTING LOWER FOURTH QUARTER EARNINGS AT JEANSWEAR MAKER V. F. CORPORATION ABOUT NINETY TWO CENTS A SHARE DOWN FROM ONE DOLLAR AND FOURTEEN CENTS A SHARE A YEAR AGO WHEN THE COMPANY HAD A NONRECURRING GAIN OF SEVENTEEN CENTS A SHARE AT FRUIT OF THE LOOM INCORPORATED ANALYSTS EXPECT EARNINGS TO FALL TO ABOUT TWENTY SIX CENTS A SHARE FROM SIXTY FOUR CENTS IN THE NINETEEN NINETY TWO FOURTH QUARTER AND AT RUSSELL CORPORATION NET INCOME IS EXPECTED TO DROP TO FIFTY NINE CENTS A SHARE FROM SEVENTY FOUR CENTS A YEAR AGO AMONG WOMEN'S APPAREL MAKERS LIZ CLAIBORNE INCORPORATED CONTINUES TO BE SADDLED WITH HIGH INVENTORIES AND IS EXPECTED TO REPORT FOURTH QUARTER NET INCOME OF FIFTEEN CENTS TO TWENTY TWO CENTS A SHARE DOWN FROM SIXTY THREE CENTS THERE ARE SOME EXCEPTIONS TAKING ADVANTAGE OF CLAIBORNE'S WEAKNESS IN THE MARKETPLACE AND BENEFITING FROM ADDITIONAL BUSINESS FROM ITS NEW DIVISIONS JONES APPAREL GROUP INCORPORATED HAS GAINED MARKET SHARE AND INCREASED ITS EARNINGS ALICE RUTH AN ANALYST AT MONTGOMERY SECURITIES PREDICTS THAT JONES WILL REPORT NET INCOME OF ABOUT TWENTY EIGHT CENTS A SHARE UP FROM TWENTY FOUR CENTS A YEAR AGO SEVERAL MENSWEAR FIRMS HAD A STRONGER FOURTH QUARTER THAN IN NINETEEN NINETY TWO TAILORED CLOTHING GIANT HARTMARX CORPORATION YESTERDAY RECORDED FOURTH QUARTER EARNINGS OF TWENTY NINE CENTS A SHARE UP FROM TWENTY TWO CENTS A SHARE A YEAR AGO WHILE NAUTICA ENTERPRISES INCORPORATED REPORTED THAT FOURTH QUARTER NET INCREASED TO FIFTY FIVE CENTS A SHARE FROM THIRTY SIX CENTS A YEAR EARLIER THE INTRODUCTION OF MEN'S WRINKLE FREE COTTON PANTS LAST YEAR SPARKED EARNINGS GAINS AT FARAH INCORPORATED WHICH REPORTED NET INCOME OF FORTY TWO CENTS A SHARE IN THE LATEST QUARTER UP FROM SEVENTEEN CENTS A SHARE A YEAR AGO WITH ABOUT FIVE HUNDRED IN STORE SHOPS IN DEPARTMENT STORES THE FAST GROWING TOMMY HILFIGER CORPORATION IS EXPECTED TO POST NET INCOME OF FORTY CENTS A SHARE VERSUS TWENTY EIGHT CENTS A YEAR EARLIER ON A HIGHER NUMBER OF SHARES BRISK SALES IN ITS RETAIL DIVISIONS GENERATED EARNINGS GAINS AT PHILLIPS VAN HEUSEN CORPORATION WHICH WALL STREET EXPECTS TO REPORT FOURTH QUARTER EARNINGS OF FIFTY CENTS A SHARE COMPARED WITH THIRTY SIX CENTS A YEAR AGO INDUSTRY OBSERVERS DON'T EXPECT DEMAND FOR WOMEN'S APPAREL TO REBOUND IN THE FIRST QUARTER OF NINETEEN NINETY FOUR NOTING THAT MANY SHOPPERS ARE STILL RECOVERING FROM HOLIDAY SPENDING AND CONSUMERS CONTINUE TO BE WARY ABOUT THE ECONOMY WHAT'S MORE WITHOUT MAJOR NEW FASHION TRENDS SALES ARE LIKELY TO STAY DEPRESSED WHEN RETAIL DEMAND FALLS INTO A SLUMP MANUFACTURERS PLAN CONSERVATIVELY AND DEFENSIVELY AND THEY DON'T PRODUCE A LOT OF NEW IDEAS SAYS MR. SLATER OF U. B. S. SECURITIES BUT IT'S THE NEWNESS THAT EXCITES APPAREL CUSTOMERS AND CREATES DEMAND NAUTICA ENTERPRISES INCORPORATED BASED IN NEW YORK REPORTED THAT NET INCOME IN ITS FISCAL THIRD QUARTER ENDED NOVEMBER THIRTIETH ROSE TO FIFTY FOUR CENTS A SHARE FROM THIRTY SIX CENTS A SHARE A YEAR EARLIER AN ARTICLE FRIDAY ABOUT EARNINGS ESTIMATES FOR APPAREL COMPANIES INCORRECTLY REPORTED THAT THE RESULTS WERE FOR THE COMPANY'S FOURTH QUARTER G. T. E. CORPORATION RACING TO SLIM DOWN FAST FOR THE MULTIMEDIA AGE ANNOUNCED A ONE POINT EIGHT BILLION DOLLAR PRETAX CHARGE TO RESTRUCTURE AND CUT SEVENTEEN THOUSAND JOBS OR THIRTEEN PERCENT OF ITS WORK FORCE THE COMPANY SAID THE CHARGE SHOULD HURT FOURTH QUARTER RESULTS BY ABOUT ONE POINT TWO BILLION DOLLARS OR ONE DOLLAR AND TWENTY TWO CENTS A SHARE WHICH WILL TRIGGER A NET LOSS G. T. E. EARNED FOUR HUNDRED SEVENTEEN MILLION DOLLARS OR FORTY FOUR CENTS A SHARE IN THE NINETEEN NINETY TWO FOURTH QUARTER AND THE COMPANY SAID THAT WITHOUT THE CHARGE EARNINGS WOULD HAVE MET ANALYSTS' EXPECTATIONS OF ABOUT SIXTY TWO CENTS A SHARE AS PART OF THE PLAN G. T. E. SAID IT WOULD MELD ITS SPACENET SATELLITE COMMUNICATIONS OPERATIONS WITH ITS GOVERNMENT SYSTEMS UNIT THE REPORTED PRETAX CHARGES SHOULD INCLUDE A THREE HUNDRED FORTY MILLION DOLLAR WRITE DOWN TO ACCOUNT FOR LOWER REVENUE IN THE SATELLITE UNIT QUOTE IN OUR INDUSTRY YOU CAN ONLY COMPETE IF YOU HAVE A COMPETITIVE COST STRUCTURE QUOTE CHARLES R. LEE G. T. E.'S CHAIRMAN SAID IN AN INTERVIEW OTHERWISE THE COMPANY IS GOING TO BLOW UP THE STREAMLINING WHICH INCLUDES ABOUT TWELVE THOUSAND FIVE HUNDRED HOURLY WORKERS AND FOUR THOUSAND FIVE HUNDRED MANAGEMENT AND SALARIED EMPLOYEES IS THE STAMFORD CONNECTICUT COMPANY'S LATEST EFFORT TO BURY ITS IMAGE AS THE CHUBBY COMPADRE OF THE SLIMMER REGIONAL BELL PHONE COMPANIES SUCH COMPANIES AS PACIFIC TELESIS GROUP AND NYNEX CORPORATION HAVE ANNOUNCED SIMILAR PLANS TO SCALE BACK STAFF AS THEY PREPARE FOR COMPETITION FROM CABLE AND OTHER CARRIERS IN THEIR MARKETS G. T. E. SAID THE THREE YEAR STREAMLINING PLAN WILL SAVE ONE BILLION DOLLARS A YEAR AS THE COMPANY SEEKS TO TRANSFORM ITSELF INTO A SVELTE LOW PRICED CARRIER OF VOICE DATA AND ENTERTAINMENT SERVICES G. T. E. OPERATES A NATIONWIDE SYSTEM OF LOCAL PHONE COMPANIES WITH SEVENTEEN MILLION PHONE LINES AND HAS THE NATION'S SECOND LARGEST CELLULAR PHONE COMPANY TODAY MANY OF G. T. E.'S SERVICE AREAS ARE RURAL THIS LARGER GEOGRAPHICAL DISPERSION HAS TRADITIONALLY REQUIRED G. T. E. TO EMPLOY MORE WORKERS THAN THE SEVEN BABY BELLS FORTY TWO WORKERS PER TEN THOUSAND PHONE LINES FOR G. T. E. COMPARED WITH AN AVERAGE OF THIRTY SEVEN WORKERS FOR THE BELLS BUT G. T. E. HAS BEEN RE ENGINEERING ITSELF REPLACING EMPLOYEES WITH FASTER MORE EFFICIENT COMPUTERIZED MAINTENANCE EQUIPMENT THE NEW CUTS ANNOUNCED YESTERDAY WILL TRIM TWENTY THREE PERCENT OF G. T. E.'S SEVENTY THREE THOUSAND LOCAL PHONE WORKERS ON TOP OF TWENTY EIGHT THOUSAND JOB CUTS THE COMPANY HAS MADE SINCE NINETEEN EIGHTY EIGHT G. T. E. EMPLOYS ONE HUNDRED THIRTY THOUSAND PEOPLE WORLD WIDE IN LOCAL PHONE CELLULAR INTERNATIONAL AND SATELLITE COMMUNICATION SERVICES WHILE MR. LEE SAID G. T. E. WAS STILL TRYING TO DETERMINE HOW BEST TO CARRY OUT THE NEW WORK FORCE REDUCTIONS HE NOTED THAT IN PAST CUTBACKS NINETY EIGHT PERCENT OF THE WORKERS WHO LEFT G. T. E. DID SO EITHER VOLUNTARILY OR THROUGH NORMAL ATTRITION A SPOKESMAN LATER SAID THE MAJORITY OF CUTS WILL BE MOSTLY INVOLUNTARY SEPARATIONS G. T. E.'S CHIEF UNION WASN'T PLEASED THE COMMUNICATIONS WORKERS OF AMERICA SAID G. T. E.'S PLAN WAS YET ANOTHER EXAMPLE OF A HIGHLY PROFITABLE COMPANY ELIMINATING THE PEOPLE WHO BUILT THE COMPANY AND CREATED ITS TECHNOLOGY TO FURTHER ENHANCE THE BOTTOM LINE THE UNION CALLED ON THE WHITE HOUSE AND CONGRESS TO LOOK CLOSELY AT JOB CREATION AND EMPLOYMENT STABILITY AS THE COMPETITIVE RULES FOR MULTIMEDIA COMMUNICATIONS ARE REWRITTEN QUOTE THE NEW CUTS SHOULD BRING G. T. E. INTO THE LOW THIRTIES IN TERMS OF WORKERS PER TEN THOUSAND PHONE LINES MAKING G. T. E. COMPETITIVE WITH THE BABY BELLS QUOTE SAID ANALYST JACK B. GRUBMAN OF PAINEWEBBER INCORPORATED THIS WILL IMPROVE G. T. E.'S PRODUCTIVITY BY TWENTY PERCENT OVER THREE YEARS A G. T. E. SPOKESMAN SAID IT CURRENTLY TAKES TWELVE HOURS AND EIGHT WORKERS TO RESOLVE A ROUTINE REPAIR PROBLEM UNDER THE NEW PROCESS THAT USES ADVANCED NETWORK DIAGNOSTIC SYSTEMS A SINGLE WORKER COULD RESOLVE CUSTOMERS' PHONE LINE COMPLAINTS IN SEVENTY PERCENT OF CASES THE BIGGEST PART OF THE CHARGE ABOUT ONE POINT THREE BILLION DOLLARS WILL COVER CLOSING FACILITIES WRITING OFF OUTDATED EQUIPMENT AND SEVERING EMPLOYEES THAT INCLUDES SIX HUNDRED EIGHTY MILLION DOLLARS IN EQUIPMENT WRITE OFFS AS G. T. E. UPGRADES TO NEW GEAR AND NETWORK SOFTWARE AND ONE HUNDRED SIXTY MILLION DOLLARS FOR CONSOLIDATING FACILITIES AND OPERATIONS CUSTOMER CENTERS WILL BE CUT TO ELEVEN FROM ONE HUNDRED SEVENTY ONE BILLING CENTERS WILL BE REDUCED TO ONE FROM FIVE AND NETWORK MANAGEMENT SITES WILL BE CUT TO ONE FROM NINETEEN ABOUT FOUR HUNDRED TEN MILLION DOLLARS WILL COVER LAYOFFS AND AN ADDITIONAL FIFTY MILLION DOLLARS WILL BE APPLIED TO RETRAINING G. T. E. SAID AT SPACENET REVENUES HAVE BEEN DECLINING STEADILY BECAUSE OF COMPETITION FROM HIGH CAPACITY TERRESTRIAL TRANSMISSION NETWORKS TO CUT ITS LOSSES G. T. E. DECIDED IT WAS BETTER TO JOIN THE UNIT WITH GOVERNMENT SYSTEMS SINCE THE TWO BUSINESSES WERE ALREADY INTIMATELY INVOLVED A SPOKESMAN SAID THEY ALREADY SHARE SOME CUSTOMERS SOME TECHNOLOGIES AND MANY TIMES THEY BID TOGETHER ON SERVICE CONTRACTS HE SAID THE REMAINING ONE HUNDRED SIXTY MILLION DOLLARS IN CHARGES WILL COVER REAL ESTATE ASSETS THAT G. T. E. IS ABANDONING AS IT STREAMLINES A SPOKESMAN ADDED G. T. E. SHARES FELL TWENTY FIVE CENTS OR ZERO POINT SEVEN PERCENT TO CLOSE AT THIRTY FOUR POINT SIX TWO FIVE DOLLARS A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY RECENTLY MR. LEE SAID G. T. E. WOULD AMASS MULTIMEDIA ASSETS AS IT PREPARES TO OFFER CUSTOMERS VIDEO AND DATA SERVICES THROUGH ITS PHONE LINES PART OF THIS PLAN MAY INCLUDE SEEKING PARTNERS OR ACQUISITIONS IN CABLE AND ENTERTAINMENT PROGRAMMING HE SAID YESTERDAY HE MADE IT CLEAR THAT G. T. E. IS STILL IN THE HUNT WE'LL DELIVER VIDEO DIAL TONE SERVICES TO UP TO SEVEN MILLION HOMES IN SIX OR SEVEN YEARS MR. LEE SAID WE'RE HAVING DISCUSSIONS WITH ALL THE KEY PEOPLE IN THE INDUSTRY ABOUT ALLIANCES PARTNERSHIPS COMBINATIONS NOTHING IS RULED OUT SEPARATELY A FEDERAL JUDGE IN LOS ANGELES RULED THAT G. T. E.'S FORMER SYLVANIA LIGHTING UNIT NOW OWNED BY A UNIT OF GERMANY'S SIEMENS A. G. MUST PAY ALMOST SEVEN MILLION DOLLARS IN DAMAGES FOR PRICE DISCRIMINATION THE SUIT FILED IN U. S. DISTRICT COURT CHARGED G. T. E. SYLVANIA WITH PROVIDING LIGHTING PRODUCTS TO CERTAIN KEY DISTRIBUTORS AT PRICES BELOW PUBLISHED PRICE LISTS AND WITH OFFERING SECRET REBATES THE COMPLAINT WAS FILED BY CHARLES VON DER AHE A FORMER LIGHTING DISTRIBUTOR WHO CLAIMED THAT G. T. E. SYLVANIA RAN A PRICE DISCRIMINATION SCHEME G. T. E. SYLVANIA RESPONDED THAT IT WAS MATCHING PRICES OFFERED TO CUSTOMERS BY COMPETITORS A SPOKESMAN AT SIEMENS CITING A CONFIDENTIALITY AGREEMENT BETWEEN HIS COMPANY AND G. T. E. DECLINED TO SAY WHETHER G. T. E. OR SIEMENS'S OSRAM UNIT WHICH NOW OWNS SYLVANIA IS LIABLE FOR THE DAMAGES HE DID SAY OSRAM WILL APPEAL THE RULING ATTENTION U. S. BUSINESSMEN HAVING TROUBLE GUARDING YOUR SECRETS LOSING OVERSEAS CONTRACTS TO FOREIGN RIVALS WHO PAY BIG BRIBES THE C. I. A. WANTS TO LEND YOU A HELPING HAND THERE'S A BIG JOB TO BE DONE ACCORDING TO JAMES WOOLSEY WHO BECAME DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY LAST YEAR AND THE C. I. A. WANTS TO DO IT BECAUSE AMERICANS WERE LESS CONCERNED ABOUT EXPORTS WHILE BUSILY WAGING THE COLD WAR QUOTE THE U. S. OFTEN HASN'T BEEN PARTICULARLY STRICT ABOUT SUCH INDUSTRIAL ESPIONAGE AND BRIBERY TARGETED AGAINST AMERICAN COMPANIES IN THE PAST QUOTE MR. WOOLSEY TOLD A BUSINESS GROUP RECENTLY WELL NO MORE MR. NICE GUY MICHAEL HERSHMAN OF THE FAIRFAX GROUP A PRIVATE INTELLIGENCE COMPANY WITH CORPORATE CLIENTS SAYS HE WELCOMES THIS SIGNIFICANT CHANGE OF DIRECTION FOR THE C. I. A WE HAVE TO START BRINGING OURSELVES ONTO AN EQUAL FOOTING WITH THE COMPETITION THE U. S. SPIES MAY BE LOOKING OUT FOR THEMSELVES AS WELL THE COLLAPSE OF THE SOVIET UNION MEANS THE C. I. A. LIKE THE DEFENSE DEPARTMENT AND OTHERS CONCERNED WITH NATIONAL SECURITY MUST SLIM DOWN THIS INTENSIFIED INTEREST IN BUSINESS MATTERS MAY BE PARTLY AN EFFORT TO KEEP THE SLIMMING UNDER CONTROL THAT COULD BE A HARD SELL THERE IS NO DESIRE ON THIS COMMITTEE'S PART TO HELP THEM CAST ABOUT FOR NEW WORK WHEN THE NEED DOESN'T DEMONSTRABLY EXIST WARNS MICHAEL SHEEHY CHIEF COUNSEL FOR THE HOUSE PERMANENT SELECT COMMITTEE ON INTELLIGENCE AN OVERSIGHT BODY BUT THE C. I. A. CLAIMS THE NEED IS THERE THOUGH AGENCY OFFICIALS AND SKEPTICS AGREE THERE'S A DANGER OF GOING TOO FAR THAT'S WHY THE C. I. A. INSISTS IT WON'T TRY AND OTHERS SAY THE GOVERNMENT WOULD NEVER PERMIT SPYING ON FOREIGN COMPANIES OR STEALING PROPRIETARY SECRETS FOR THE DIRECT BENEFIT OF AMERICAN BUSINESS THE LEGAL AND FOREIGN POLICY RAMIFICATIONS OF THIS WOULD BE COUNTERPRODUCTIVE AND DAMAGING IN A NUMBER OF WAYS MR. WOOLSEY SAYS THE C. I. A. HAS LONG WATCHED OTHER COUNTRIES' SPY AGENCIES AND TRIED TO KEEP TRACK OF MEDDLING THAT HURTS U. S. COMPANIES BUT MR. WOOLSEY IS PUSHING DEEPER INTO COMMERCIAL MATTERS QUOTE WE WILL DO SO WITH SPECIAL ENTHUSIASM AND RELISH QUOTE THOUGH THE TOPIC REMAINS CONTROVERSIAL BOTH WITHIN THE C. I. A. AND THE ADMINISTRATION AS A WHOLE SOME EXPERTS CONTEND THAT THESE AREN'T PROPER DUTIES FOR THE NATION'S CHIEF INTELLIGENCE BUREAU WHAT IS C. I. A. SUPPOSED TO STAND FOR THE CENTRAL INTELLIGENCE ANTI BRIBERY AGENCY ASKS A SKEPTICAL FORMER U. S. OFFICIAL FAMILIAR WITH ITS OPERATIONS BUT AGENCY OFFICIALS SAY THE BUSINESS ROLE CAN BE TWOFOLD ONE TASK IS TO MONITOR MORE CLOSELY THOSE FOREIGN SPY AGENCIES THAT TRY TO STEAL AMERICAN BUSINESS OR TECHNICAL SECRETS FRANCE IS WIDELY CONSIDERED THE MOST BLATANT TRANSGRESSOR BUT SPIES FROM BRITAIN ISRAEL CHINA JAPAN AND SOUTH KOREA ALLEGEDLY ALSO ARE MAJOR PLAYERS IN THIS GAME FOREIGN INTELLIGENCE AGENCIES GENERALLY WORK CLOSELY WITH THEIR BUSINESSMEN SAYS A SENIOR C. I. A. OFFICIAL THE SECOND TASK IS TO FIGHT BRIBERY AND OTHER UNFAIR PRACTICES STRICT U. S. LAWS INHIBIT AMERICAN COMPANIES ON THE PAYOFF FRONT IT WOULD PUT MORE OFFICERS CAREER EMPLOYEES AGENTS OUTSIDE RECRUITS AND OTHER ASSETS INTO THE FRAY TO GATHER DATA ABOUT PRACTICES THAT HARM U. S. BUSINESS INTERESTS ANY USEFUL INFORMATION WOULD BE SENT ELSEWHERE FOR ACTION TO THE STATE OR COMMERCE DEPARTMENTS FOR EXAMPLE OR THE LOCAL U. S. AMBASSADOR THE AGENCY HAS NO PLANS TO ACT DIRECTLY FOR AMERICAN BUSINESS JUST HOW MUCH BIG TIME BRIBERY TAKES PLACE IS UNCLEAR ONE SECRET U. S. TALLY FINDS FEWER THAN ONE HUNDRED CASES IN RECENT YEARS YET STRANGE THINGS DO OCCUR A CURRENT EXAMPLE AN AMERICAN COMPANY IN SOUTHEAST ASIA THOUGHT IT HAD WON A MAJOR GOVERNMENT CONTRACT ONLY TO SEE THE DEADLINE EXTENDED AT THE LAST MINUTE THEN AN OBSCURE GROUP ENTERED AN ALMOST IDENTICAL COMPLEX BID AT A SLIGHTLY LOWER PRICE THE U. S. AMBASSADOR HAS PROTESTED HEATEDLY TO HIS HOST GOVERNMENT ON GROUNDS THAT SECRET TERMS WERE STOLEN FOR THE RIVAL'S BENEFIT THE OUTCOME IS STILL PENDING BUSINESSES AREN'T UNIFORMLY ENTHUSIASTIC ABOUT GETTING HELP AND GUIDANCE FROM THE C. I. A. ONE AGENCY OFFICIAL CONCEDES THERE'S HISTORICAL ANIMOSITY BETWEEN GOVERNMENT AND BUSINESS AND MANY EXECUTIVES DON'T WANT TO BE TAINTED BY ASSOCIATION WITH SPIES PERHAPS THAT'S WHY AMERICAN TELEPHONE AND TELEGRAPH COMPANY SAYS WE DON'T NEED THE C. I. A.'S HELP IN THESE KIND OF MATTERS THANK YOU VERY MUCH RYKOFF SEXTON INCORPORATED LOS ANGELES DONALD E. WILLIS JUNIOR FORTY TWO YEARS OLD WAS APPOINTED SENIOR VICE PRESIDENT AND CHIEF INFORMATION OFFICER A NEWLY CREATED POSITION WITH THIS MAKER AND DISTRIBUTOR OF FOOD AND RELATED PRODUCTS FOR RESTAURANTS INSTITUTIONS AND OTHER LOCATIONS HE PREVIOUSLY WAS SENIOR VICE PRESIDENT INFORMATION SYSTEMS AT HOMEBASE I COMMEND PAUL GIGOT ON HIS EXCELLENT DECEMBER THIRTY FIRST POTOMAC WATCH COLUMN QUOTE JOHN AND BILL ANITA AND GENNIFER SEX AND STANDARDS QUOTE AMERICANS MUST BE REMINDED OF THE DOUBLE STANDARD LIBERALS USE ABOUT MORALITY AND SEX LAST YEAR NEWS REPORTERS CALLED ME FOR HOW HAS YOUR LIFE BEEN CHANGED SINCE YOU WERE A WITNESS AT THE CLARENCE THOMAS HEARINGS STORIES AS WE APPROACHED THE ANNIVERSARY OF THE THOMAS HEARINGS AND THE LEFT'S ATTACK VIA ANITA HILL ON HIS VERY ESSENCE I WILL NEVER FORGET THE CONVERSATION I HAD WITH A YOUNG WOMAN FROM THE GANNET NEW SERVICE SHE WAS OBSESSED WITH TRYING TO FIND DIRT ON MR. THOMAS BUT TOTALLY UNINTERESTED IN LOOKING AT MS. HILL I ASKED HER WHY THE PRESS WAS STILL GOING AFTER CLARENCE BUT HAD TOTALLY IGNORED THE EVIDENCE PRESENTED BY DAVID BROCK'S BOOK THE REAL ANITA HILL SHE TOLD ME THAT ANITA'S NOT IMPORTANT BECAUSE SHE DOES NOT HAVE A LIFETIME SUPREME COURT APPOINTMENT I SAID BUT ANITA IS GOING AROUND THE COUNTRY MAKING TENS OF THOUSANDS OF DOLLARS GIVING SPEECHES AND TRYING TO INFLUENCE PUBLIC POLICY WHAT IF ANITA HILL LIED ON THE STAND WHAT IF SHE COMMITTED PERJURY BEFORE A NATIONAL AUDIENCE WOULDN'T THAT BE NEWS THE REPORTER SAID QUOTE NO IT DOES NOT MAKE ANY DIFFERENCE WHETHER ANITA WAS TELLING THE TRUTH OR NOT THE KEY IS THAT SHE BROUGHT THE ISSUE OF SEXUAL HARASSMENT TO THE PUBLIC'S ATTENTION WELL SO MUCH FOR TRUTH JUSTICE FAIRNESS OR A MAN'S REPUTATION THANKS AGAIN MR. GIGOT FOR LETTING US KNOW THAT THERE STILL ARE SOME PEOPLE WHO DESERVE THE TITLE JOURNALIST THREE CHEERS FOR PAUL GIGOT AS A LONG AGO REPORTER FOR THE DETROIT FREE PRESS AND THE LOS ANGELES TIMES IT IS REFRESHING TO READ SOMEONE IN THE MEDIA TODAY WHO ISN'T AN APOLOGIST FOR THE DEMOCRATIC PARTY WHEN IT COMES TO AGGRESSIVE REPORTING OF POLITICAL PECCADILLOS WE HAVE HAD A DOUBLE STANDARD FOR TOO MANY YEARS SENATOR PACKWOOD'S CONSTITUTIONAL RIGHTS WOULD NOT BE SO GROSSLY VIOLATED TODAY IF HE WERE A DEMOCRAT CONVERSELY YOU CAN IMAGINE THE WHIPPING WANDERING WILLY WOULD BE GETTING TODAY FROM THE WASHINGTON POST AND NEW YORK TIMES CROWD IF HE WERE A REPUBLICAN METALLGESELLSCHAFT A. G. SET A QUOTE PROVISIONAL QUOTE EXTRAORDINARY SHAREHOLDER'S MEETING FOR FEBRUARY TWENTY FOURTH TO SEEK APPROVAL OF A PROPOSED SHARE OFFERING IMPLIED IN SETTING THE DATE IS THE BELIEF THAT THE FINANCIALLY STRAPPED GERMAN METALS AND TRADING COMPANY WON'T FILE FOR BANKRUPTCY PROTECTION NEXT WEEK A CRUCIAL DECISION ON A THREE POINT FOUR BILLION MARK ONE POINT NINE SIX BILLION DOLLARS FINANCIAL RESCUE PLAN HAD BEEN EXPECTED FROM BANKS YESTERDAY BUT WAS PUSHED BACK TO TOMORROW BECAUSE OF DELAYED RESPONSES AND LAST MINUTE OPPOSITION FROM A GROUP OF FRENCH BANKS METALLGESELLSCHAFT WHICH SAID IT RECEIVED A POSITIVE RESPONSE FROM BANKS AT THE PROPOSAL'S FIRST HEARING LAST WEEK HAS SAID IT WILL FILE FOR BANKRUPTCY IF THE PLAN IS REJECTED UNDER THE PROPOSAL SHAREHOLDERS WILL BE ASKED TO APPROVE THE ISSUANCE OF FIVE POINT SIX MILLION NEW SHARES AT TWO HUNDRED FIFTY MARKS EACH TO RAISE ONE POINT FOUR BILLION MARKS THE PLAN ALSO CALLS FOR BANK CREDITORS TO ARRANGE A SEVEN HUNDRED MILLION MARK CREDIT LINE AND TO CONVERT ONE POINT THREE BILLION MARKS IN METALLGESELLSCHAFT BANK DEBT INTO CONVERTIBLE PROFIT SHARING CERTIFICATES THE COMPANY SAID YESTERDAY IT REMAINED CONFIDENT THAT BANKS AND SHAREHOLDERS WOULD APPROVE THE PACKAGE MAJOR SHAREHOLDERS WHICH ACCOUNT FOR SIXTY TWO PERCENT OF METALLGESELLSCHAFT'S EQUITY INCLUDE DEUTSCHE BANK A. G. DRESDNER BANK A. G. DAIMLER BENZ A. G. INSURER ALLIANZ A. G. AND THE GOVERNMENT OF KUWAIT EACH HAS SIGNALED ACCEPTANCE OF THE NEW SHARE ISSUE AS LONG AS THE BANKS DID THEIR PART BUT THAT WAS FAR FROM CERTAIN YESTERDAY THE CREDIT RESTRUCTURING PLAN WHICH THE COMPANY SAID WEDNESDAY MUST BE UNCONDITIONALLY ACCEPTED AS A PACKAGE BY ALL OF ITS ONE HUNDRED TWENTY BANK CREDITORS FOR LEGAL REASONS WAS THREATENED WITH UNRAVELING AS SEVERAL BANKS WITHHELD APPROVAL BANKING SOURCES SAID SIX FRENCH BANKS INCLUDING SOCIETE GENERALE COMPANY STATED THEY WOULD REJECT THE PLAN UNLESS CHANGES WERE MADE CLAIMING THAT SHAREHOLDERS SHOULD BEAR MORE OF THE BURDEN FRENCH BANKERS ALSO CITED INADEQUATE INFORMATION ON THE STATUS OF METALLGESELLSCHAFT'S LOSSES DEUTSCHE BANK AND DRESDNER BANK WERE STILL FIGHTING YESTERDAY TO KEEP THE DEAL FROM UNRAVELING THE TWO BIG FRANKFURT BANKS RUSHED A DELEGATION ONTO A PLANE TO PARIS TO TRY TO PERSUADE FRENCH BANKS TO STAY ABOARD DEUTSCHE BANK WHICH HEADS THE STEERING COMMITTEE OF METALLGESELLSCHAFT BANK CREDITORS ALSO EXTENDED THE DEADLINE FOR RESPONSES FROM U. S. BANKS UNTIL LATE YESTERDAY NORDDEUTSCHE LANDESBANK THE MOST STRIDENT OPPONENT OF THE PLAN AMONG GERMAN BANKS THIS WEEK APPARENTLY WAS BROUGHT BACK INTO THE FOLD AFTER ACHIEVING UNDISCLOSED MODIFICATIONS IN TALKS WITH DEUTSCHE BANK AND DRESDNER BANK OFFICIALS WE WERE ABLE GET AGREEMENT SAID A DEUTSCHE BANK SPOKESMAN WHO ALSO CONFIRMED THE HURRIED TALKS WITH FRENCH BANKS WE STILL HAVE WORK TO DO TO GET EVERYBODY INTO THE BOAT HE SAID AS RECENTLY AS NOVEMBER FEW OUTSIDE THE COMPANY HAD A NOTION ANYTHING WAS WRONG LAST MONTH ITS BOARD SACKED SENIOR MANAGEMENT FOR ALLEGEDLY WITHHOLDING INFORMATION ON THE COMPANY'S FINANCIAL CONDITION IT WENT ON TO DISCOVER THAT THE COMPANY'S EXISTING AND POTENTIAL LOSSES FOR THE PAST FISCAL YEAR TOTALED ONE POINT EIGHT BILLION MARKS PLUS ANOTHER ONE POINT FIVE BILLION MARKS IN POTENTIAL OIL TRADING LOSSES METALLGESELLSCHAFT SHARES WHICH WERE SUSPENDED FROM TRADING YESTERDAY IN ANTICIPATION OF A DECISION FROM THE BANKS HAD BEEN SUPPORTED BY SPECULATION OF AN APPROVED FINANCIAL PLAN IT CLOSED WEDNESDAY AT TWO HUNDRED TWENTY SIX MARKS A SHARE UP FROM LESS THAN TWO HUNDRED MARKS LATE LAST WEEK KNIGHT RIDDER INCORPORATED A MEDIA CONCERN ACQUIRED TECHNIMETRICS INCORPORATED FINANCIAL TERMS WERE NOT DISCLOSED TECHNIMETRICS IS A NEW YORK INFORMATION SERVICES COMPANY SPECIALIZING IN FINANCIAL DATABASES SKOLNIKS INCORPORATED SAID IT REACHED AGREEMENTS WITH TWO DISTRIBUTORS THAT MORE THAN DOUBLES THE NUMBER OF SUPERMARKETS AND CONVENIENCE STORES TO WHICH ITS BAGELS WILL BE DELIVERED THE BAGEL AND SPREAD MAKER SAID TWO THOUSAND FOUR HUNDRED NEW LOCATIONS ARE ADDED THROUGH WAL MART STORES INCORPORATED'S MCLANE DISTRIBUTION DIVISION AND ONE THOUSAND TWO HUNDRED MORE LOCATIONS THROUGH CORE MARK INTERNATIONAL INCORPORATED A CLOSELY HELD DISTRIBUTOR BASED IN SAN FRANCISCO SKOLNIKS SAID IT ALSO HAS COMMITMENTS FROM SEVEN THOUSAND ADDITIONAL LOCATIONS THAT WILL BEGIN RECEIVING DELIVERIES WITHIN NINETY DAYS EITHER THROUGH MCLANE CORE MARK FLEMING COMPANIES OR SCRIVNER INCORPORATED SKOLNIKS BASED IN OKLAHOMA CITY QUADRUPLED ITS BAGEL MAKING CAPACITY TO TWO POINT FIVE MILLION BAGELS A WEEK LAST MONTH WITH THE OPENING OF A NEW PLANT IN NEW JERSEY WARNACO GROUP INCORPORATED PLANS TO ACQUIRE THE LUCRATIVE UNDERWEAR BUSINESS OF CALVIN KLEIN INCORPORATED IN A TRANSACTION VALUED AT CLOSE TO SEVENTY MILLION DOLLARS ACCORDING TO PEOPLE INVOLVED IN THE TALKS WARNACO AN APPAREL MANUFACTURER DECLINED COMMENT AND CALVIN KLEIN EXECUTIVES COULD NOT BE REACHED FOR COMMENT LATE YESTERDAY BUT THE PEOPLE INVOLVED IN THE TALKS SAID WARNACO HAS COMPLETED NEGOTIATIONS ON THE TRANSACTION AND COULD ANNOUNCE IT EARLY NEXT WEEK UNDER THE AGREEMENT WARNACO WOULD PURCHASE THE UNDERWEAR BUSINESS OF CLOSELY HELD CALVIN KLEIN EXACT TERMS OF THE ACQUISITION COULD NOT BE LEARNED YESTERDAY CALVIN KLEIN UNDERWEAR MAKES PRODUCTS FOR BOTH MEN AND WOMEN AND IS BEST KNOWN FOR ITS SLICK BLACK AND WHITE PRINT ADS FEATURING SCANTILY CLAD MALE AND FEMALE MODELS FOR WARNACO THE PURCHASE FITS WITH CHAIRMAN AND CHIEF EXECUTIVE LINDA WACHNER'S STRATEGY OF EXPANDING INTO HIGH PROFILE BRANDS WARNACO IS ALREADY A MARKET LEADER IN WOMEN'S INTIMATE APPAREL SUCH AS BRAS AND UNDERWEAR WHICH IT SELLS UNDER THE WARNER AND OLGA BRAND NAMES IT ALSO SELLS MENSWEAR SUCH AS HATHAWAY SHIRTS CHRISTIAN DIOR TIES AND CASUAL WEAR FROM PURITAN AND CHAPS BY RALPH LAUREN CASH FROM THE PURCHASE WOULD ALLOW CALVIN KLEIN TO RETIRE ITS DEBT PRIMARILY CONSISTING OF APPROXIMATELY FIFTY FIVE MILLION DOLLARS IN JUNK BOND DEBT WHICH THE COMPANY REPURCHASED FROM HOLLYWOOD FIGURE DAVID GEFFEN LAST SUMMER MR. GEFFEN A LONG TIME FRIEND OF THE DESIGNER MR. KLEIN HAD PURCHASED THE DEBT IN NINETEEN NINETY TWO AND SAID AT THE TIME HE WAIVED REPAYMENT OF THE PRINCIPAL QUOTE FOR SEVERAL YEARS QUOTE TO HELP GIVE THE DESIGNER BREATHING ROOM DURING A DIFFICULT PERIOD THE JUNK BOND DEBT STEMMED FROM CALVIN KLEIN'S NINETEEN EIGHTY THREE PURCHASE OF PURITAN FASHIONS INCORPORATED CALVIN KLEIN SOLD THE DEBT TO MR. GEFFEN BECAUSE IT WAS HAVING TROUBLE MEETING DEBT PAYMENTS DUE TO SETBACKS IN ITS BASIC SPORTSWEAR BUSINESS WHICH IN NINETEEN NINETY ACCOUNTED FOR ABOUT EIGHTY PERCENT OF ITS ANNUAL SALES OF ABOUT TWO HUNDRED MILLION DOLLARS BUT PEOPLE FAMILIAR WITH THE COMPANY SAY ITS BUSINESS IS IN MUCH BETTER SHAPE NOW AND RETIRING THE DEBT WILL FREE IT TO MAKE OTHER SIGNIFICANT MOVES STATESMAN GROUP INCORPORATED DES MOINES IOWA DECLARED A DIVIDEND OF TEN CENTS ON COMMON STOCK PAY FEBRUARY FOURTEENTH TO RECORD JANUARY THIRTY FIRST THE FINANCIAL SERVICES HOLDING COMPANY WHICH DOESN'T HAVE A REGULAR DIVIDEND SAID THE SPECIAL PAYOUT RECOGNIZES THE COMPANY'S ACCOMPLISHMENTS AND QUOTE REFLECTS THE CONFIDENCE OF OUR BOARD OF DIRECTORS IN THE COMPANY'S FINANCIAL CONDITION AND FUTURE EARNINGS PROSPECTS QUOTE THE COMPANY'S LAST DIVIDEND WAS FIVE PERCENT IN STOCK PAID IN DECEMBER STATESMAN ALSO SAID ITS BOARD AUTHORIZED THE REPURCHASE OF UP TO ONE MILLION COMMON SHARES OR ABOUT SEVEN POINT FIVE PERCENT OF ITS APPROXIMATELY THIRTEEN POINT FOUR MILLION SHARES OUTSTANDING THE COMPANY SAID THE PURCHASE PROGRAM WILL BE IN EFFECT FOR THE REMAINDER OF NINETEEN NINETY FOUR SHARES ACQUIRED UNDER THE PROGRAM WILL BE USED FOR GENERAL CORPORATE PURPOSES THE COMPANY SAID EVEN AT THEIR MOST CREATIVE THE DOG ATE MY HOMEWORK CROWD PROBABLY COULDN'T COME UP WITH THE EXCUSE EL PASO TEXAS SCHOOL OFFICIALS ARE USING TO REQUEST RESCHEDULING OF A MAY TENTH STATEWIDE TEST THERE'S A SOLAR ECLIPSE THAT DAY QUOTE AFTER AN EXCITING MORNING OF VIEWING THE ECLIPSE IT IS DOUBTFUL THAT THE AFTERNOON WOULD BE AN OPTIMUM TIME FOR OUR CHILDREN TO TEST QUOTE IS HOW EL PASO INDEPENDENT SCHOOL DISTRICT SUPERINTENDENT STAN PAZ PUT IT IN A LETTER TO THE TEXAS EDUCATION AGENCY HE ASKED THE AGENCY TO RESCHEDULE THE READING PORTION OF THE ANNUAL TEXAS ASSESSMENT OF ACADEMIC SKILLS TEST TO MAY TWELFTH DOCTOR PAZ HAS SCIENCE ON HIS SIDE ON MAY TENTH EL PASO WILL BE IN THE DIRECT PATH OF AN ANNULAR SOLAR ECLIPSE MEANING THE MOON'S SHADOW WILL ALMOST BLOCK OUT THE SUN IT WILL LOOK AS THOUGH A BIG BLACK DOT IS COVERING THE SUN SAYS JOHN PETERSON WHO RUNS THE SCHOOL DISTRICT'S PLANETARIUM AND BROUGHT THE ECLIPSE SLASH TEST CONFLICT TO LIGHT THE PARENTS IN EL PASO BACK DOCTOR PAZ THIS IS AN EDUCATIONAL EXPERIENCE WELL WORTH RESCHEDULING THE TAAS TESTS OVER SAYS FRANCIE MCINTOSH PRESIDENT OF A PARENTS ASSOCIATION AND MOTHER OF TWO CHILDREN IN EL PASO SCHOOLS IT'S NOT LIKE WE PLANNED THE SOLAR ECLIPSE SHE ADDS HARDLY EL PASO WAS LAST IN THE DIRECT PATH OF A SOLAR ECLIPSE IN ONE THOUSAND EIGHT HUNDRED TWENTY ONE AND WON'T BE AGAIN UNTIL TWO THOUSAND ONE HUNDRED SIXTY FIVE MR. PETERSON SAYS SO THE RARE ECLIPSE JUST MIGHT RATTLE SOME OF THE THIRD TO EIGHTH GRADERS WHO HAVE TO BE TESTED AND LOW TAAS TEST SCORES WOULD RATTLE THEIR TEACHERS SCORES BECOME PUBLIC KNOWLEDGE IN TEXAS AND CHRONICALLY LOW ONES CAN LEAD TO A SCHOOL'S CLOSING NONE OF WHICH SEEMS TO BE SWAYING THE TEA THE ECLIPSE IS ONLY FOR ABOUT SEVEN AND ONE HALF MINUTES AT TEN FORTY FIVE SAYS TEA SPOKESWOMAN DELLA MAE MOORE THE TEA HAS OFFERED TO LET THE SCHOOL DISTRICT START THE TEST EARLY BREAK FOR THE ECLIPSE THEN RESUME OR THE AGENCY SAYS POSTPONE THE TEST UNTIL AFTERNOON THOUGH THE TEA HAS BEEN KNOWN TO CHANGE TEST DATES MISS MOORE SAYS YOU HAVE TO LOOK AT THE OVERALL EFFECTS ON TEST SECURITY FOR THE TWO POINT TWO MILLION TEST TAKERS WHILE EL PASO HAS A FRONT ROW SEAT THE ECLIPSE WILL BE EVIDENT ALL OVER THE U. S. QUOTE IT'S WORTH A MONTH OF REGULAR ASTRONOMY INSTRUCTION TO SEE AN ECLIPSE QUOTE SAYS CAROLYN SUMNERS DIRECTOR OF ASTRONOMY AT THE HOUSTON MUSEUM OF NATURAL SCIENCE IN FACT SHE NOTES A TAAS SAMPLE TEST LAST YEAR HAD A QUESTION ABOUT THE ALIGNMENT OF THE EARTH MOON AND SUN IN AN ECLIPSE THE EUROPEAN UNION'S TOP TRADE OFFICIAL IS CALLING FOR A SHIFT IN E. U. AID FOR EASTERN EUROPE TOWARD MORE PROJECTS THAT WOULD MEET THE REAL NEEDS OF AVERAGE CITIZENS SIR LEON BRITTAN THE E. U. COMMISSIONER FOR EXTERNAL ECONOMIC RELATIONS PLANS TO PUSH IN A SPEECH IN SCOTLAND TODAY THE NEED TO BROADEN THE E. U.'S AID EFFORTS BEYOND THE LARGELY TECHNICAL ASSISTANCE IT HAS PROVIDED SINCE COMMUNISM'S COLLAPSE SOURCES SAID THE NEW INITIATIVE HAS BEEN UNDER DEVELOPMENT FOR SOME TIME BUT ITS UNVEILING IS TIMED TO COINCIDE WITH PRESIDENT CLINTON'S TRIP TO EUROPE SIR LEON PLANS TO HIGHLIGHT THE E. U.'S LEADING ROLE IN PROVIDING AID FOR THE FORMER EAST BLOC BUT TO ADVOCATE NEW DIRECTIONS IN A PROGRAM OFTEN CRITICIZED FOR A BLOATED BUREAUCRACY AND FOR PROVIDING FEW TANGIBLE BENEFITS FOR THE REGION'S CITIZENS QUOTE IT'S IMPORTANT THAT PEOPLE IN RUSSIA AND THE OTHER COUNTRIES OF EASTERN EUROPE SEE THE ACTUAL BENEFITS OF OUR AID PROGRAMS QUOTE ONE BRITTAN AIDE SAID SIR LEON PLANS TO HIGHLIGHT THE NEED FOR E. U. AID PROGRAMS TO PROVIDE SOME OF THE SOCIAL SERVICES THAT FORMERLY FLOWED FROM STATE OWNED INDUSTRIES PEOPLE FAMILIAR WITH THE SPEECH SAID EURO DISNEY S. C. A. STOCK JUMPED FOUR POINT THREE PERCENT THANKS TO A STRONG OUTLOOK FOR ATTENDANCE AT THE COMPANY'S THEME PARK ON THE OUTSKIRTS OF PARIS SHARES IN THE PARK AND HOTEL OPERATOR CLOSED AT THIRTY SIX POINT TWO FRANCS SIX DOLLARS AND FOURTEEN CENTS UP ONE POINT FIVE FRANCS TRADERS IN PARIS SAID THE STOCK RECEIVED A BOOST FROM A REPORT YESTERDAY MORNING IN THE WALL STREET JOURNAL EUROPE THAT THE PARK IS ENJOYING STRONG ATTENDANCE AND THAT TOUR OPERATORS PREDICT GROWING SALES OF EURO DISNEY HOLIDAY PACKAGES BUT ANALYSTS EXPRESSED SKEPTICISM ABOUT THE SHARES SAYING BUYERS MAY BE MISLED IF THEY VIEW STRONG ATTENDANCE AS A PANACEA FOR THE PARK'S PROBLEMS QUOTE IT'S A BIT LIKE A THEATER SHOW SOMETIMES PEOPLE GO IN TO SEE IT WHEN THEY HEAR IT'S ABOUT TO CLOSE QUOTE SAID NIGEL REED OF PARIBAS CAPITAL MARKETS IN LONDON INSTEAD MR. REED SAID INVESTORS SHOULD AWAIT NEWS ON THE RESTRUCTURING OF EURO DISNEY'S TROUBLED FINANCES EURO DISNEY IS IN TALKS WITH ITS BANKERS AND WALT DISNEY COMPANY WHICH OWNS FORTY NINE PERCENT OF THE EUROPEAN COMPANY'S SHARES ALMOST ANY REORGANIZATION PLAN POSSIBLE WOULD DILUTE THE STOCK DRAMATICALLY NOTED JACK HERSCH RESEARCH DIRECTOR AT M. J. WHITMAN IN NEW YORK EURO DISNEY REPORTED A LOSS OF FIVE POINT THREE BILLION FRANCS FOR THE YEAR ENDED SEPTEMBER THIRTIETH INCLUDING A ONE TIME CHARGE OF THREE POINT SIX BILLION FRANCS TO WRITE OFF THE PARK'S START UP COSTS AMERICANS ARE STILL MOVING TO THE SOUTH AND OUT OF THE NORTHEAST BUT HAVE SLOWED THEIR OVERALL MOVING AROUND OVERALL MOBILITY IN NINETEEN NINETY ONE AND NINETEEN NINETY TWO DECLINED SIGNIFICANTLY FROM THE SIX PRIOR YEARS A REPORT FROM THE U. S. CENSUS BUREAU SHOWS BETWEEN MARCH NINETEEN NINETY ONE AND MARCH NINETEEN NINETY TWO FORTY TWO POINT EIGHT MILLION PEOPLE CHANGED RESIDENCES OR SEVENTEEN PERCENT OF THE TOTAL POPULATION THE PEAK PERCENTAGE OF MOVES OCCURRED IN NINETEEN SIXTY TO SIXTY ONE WHEN TWENTY POINT SIX PERCENT OF THE POPULATION CHANGED RESIDENCES CLOSELY FOLLOWED BY NINETEEN EIGHTY FOUR TO EIGHTY FIVE WHEN TWENTY POINT TWO PERCENT OF THE POPULATION MOVED IN THE LATEST SURVEY MOST OF THE MOVERS PACKED UP FOR HOMES OR APARTMENTS ACROSS TOWN TWENTY SIX POINT SIX MILLION PEOPLE OR TEN POINT SEVEN PERCENT OF THE TOTAL POPULATION MOVED WITHIN THE SAME COUNTY MOST OF THESE MOVES THE CENSUS BUREAU SAID WERE PROBABLY PROMPTED BY MARRIAGES DIVORCES BIRTHS OR OTHER EVENTS THAT ALTER HOUSING NEEDS IN CONTRAST SIX PERCENT OF THE POPULATION MOVED TO A DIFFERENT COUNTY AND TWO POINT NINE PERCENT MOVED TO A DIFFERENT STATE NOT SURPRISINGLY YOUNG ADULTS MOVED AROUND THE MOST ONE THIRD OF ALL PEOPLE IN THEIR TWENTIES CHANGED ADDRESSES THE SOUTH WHICH BEGAN EXPERIENCING NET NEW RESIDENTS DURING THE NINETEEN SIXTIES SAW A NET GAIN OF TWO HUNDRED TWENTY FOUR THOUSAND NEW RESIDENTS IN NINETEEN NINETY ONE TO NINETY TWO THE NORTHEAST MEANWHILE EXPERIENCED A NET LOSS OF TWO HUNDRED NINETY TWO THOUSAND ROUGHLY THE SAME AMOUNT OF PEOPLE MOVED INTO AND OUT OF THE MIDWEST AND THE WEST U. S. WEST INCORPORATED HAS FIGURED OUT A WAY TO HAVE ITS CAKE IN RUSSIA AND EAT IT TOO IN AN UNUSUAL FINANCIAL GAMBIT ANNOUNCED YESTERDAY THE ENGLEWOOD COLORADO BASED TELECOMMUNICATIONS COMPANY RAISED ONE HUNDRED TWENTY FIVE MILLION DOLLARS FOR ITS FAST GROWING RUSSIAN VENTURES WITHOUT SUBSTANTIALLY INCREASING ITS OWN RISKS OF DOING BUSINESS THERE OVER THE PAST FIVE YEARS U. S. WEST HAS EMERGED AS ONE OF THE MOST ACTIVE PLAYERS IN EAST EUROPEAN TELECOMMUNICATIONS BUT ALSO HAS BEEN FINANCIALLY ASTUTE COMMITTING JUST EIGHTY MILLION DOLLARS OF ITS OWN CAPITAL TO AMASS MORE CELLULAR TELEPHONE FRANCHISES IN THE REGION THAN ANY OTHER COMPANY IN RUSSIA WHERE THE COMPANY IS EAGER TO GROW FASTER BUT IS CAUTIOUS ABOUT RISKING TOO MUCH CASH ITS NEW GAMBIT IS TO PUT ALL OF ITS FAST GROWING HOLDINGS INTO A SEPARATE NEWLY CREATED COMPANY WHICH IT CALLS RUSSIAN TELECOMMUNICATIONS DEVELOPMENT CORPORATION IT RETAINED A SEVENTY ONE PERCENT STAKE IN THE NEW COMPANY AND HIRED INVESTMENT BANK C. S. FIRST BOSTON TO PEDDLE THE REMAINING TWENTY NINE PERCENT TO BIG INVESTORS AROUND THE WORLD SEVEN WESTERN FIRMS BARING INTERNATIONAL INVESTMENT CAPITAL RESEARCH INTERNATIONAL EMERGING MARKETS INVESTORS G. T. CAPITAL INVESCO CEAM MONTGOMERY ASSET MANAGEMENT AND MORGAN STANLEY ASSET MANAGEMENT PLEDGED A TOTAL OF FORTY MILLION DOLLARS TO BUY THE SHARES A U. S. GOVERNMENT LENDING ARM THE OVERSEAS PRIVATE INVESTMENT CORPORATION OFFERED TO LOAN THE VENTURE SEVENTY FIVE MILLION DOLLARS AND PROVIDE TEN MILLION DOLLARS IN DEBT SECURITIES CONVERTIBLE INTO EQUITY U. S. WEST SAID THE VENTURE WILL RAISE MORE CASH UP TO FIVE HUNDRED MILLION DOLLARS BY BORROWING MORE MONEY AND REINVESTING ALL OF ITS PROFITS OF COURSE IN THE WEST SUCH QUOTE PRIVATE PLACEMENTS QUOTE OF STOCK TO INSTITUTIONAL INVESTORS HAPPEN ALL THE TIME BUT BUSINESS CONSULTANTS DESCRIBED THE VENTURE AS NOVEL FOR RUSSIA IT SOUNDS SUPER SAID DAVID PITT WATSON A DIRECTOR OF BRAXTON ASSOCIATES A CONSULTING UNIT OF ACCOUNTANTS DELOITTE AND TOUCHE I'VE HEARD OF LOTS OF REASONABLY CREATIVE FINANCING BUT I'VE NEVER HEARD OF ANYTHING LIKE THAT IN RUSSIA HE SAID IN A RISKY ENVIRONMENT IT'S A RELATIVELY LOW RISK PROPOSITION OBSERVED MICHAEL OBERMAYER SENIOR PARTNER IN CHARGE OF EASTERN EUROPE FOR MCKINSEY AND COMPANY AN INTERNATIONAL MANAGEMENT CONSULTING FIRM THAT ISN'T INVOLVED IN THE VENTURE TO RAISE THE MONEY A COMPANY SPOKESMAN SAID U. S. WEST DIDN'T TAKE ON ANY SUBSTANTIAL EXTRA RISK ONLY ITS EXISTING RUSSIAN ASSETS AND THEIR FUTURE PROFITS WHICH U. S. WEST HAS PLEDGED TO RE INVEST IN THE VENTURE ARE AT RISK U. S. WEST'S BOOKS WILL RECORD A GAIN ON THE TRANSFER WHICH IT WILL SPREAD OUT OVER A FEW YEARS THE SPOKESMAN SAID U. S. WEST HAS INVESTED ABOUT FIFTY MILLION DOLLARS IN RUSSIA BUT IN THE PAST FEW YEARS OF OPERATION THERE ITS ASSETS HAVE GROWN IN VALUE TO A LITTLE MORE THAN ONE HUNDRED MILLION DOLLARS THE SPOKESMAN SAID THEY INCLUDE CELLULAR TELEPHONE FRANCHISES IN EIGHT RUSSIAN CITIES PLUS A VENTURE WITH RUSSIA'S LONG DISTANCE PHONE COMPANY ROSTELECOM THAT CONNECTS MOST OF THE COUNTRY'S TELEPHONE CALLS TO THE WEST OVERSEAS PRIVATE INVESTMENT'S INVOLVEMENT MAY HAVE BEEN KEY TO ATTRACTING THE PRIVATE INVESTORS THE U. S. GOVERNMENT AGENCY HAS SAID IT WILL QUOTE CONSIDER QUOTE INSURING THE U. S. WEST VENTURE AGAINST CERTAIN POLITICAL RISKS IN RUSSIA THE U. S. WEST SPOKESMAN SAID AFTER NATURAL RESOURCES TELECOMMUNICATIONS IS ONE OF THE MOST PROMISING INDUSTRIES IN RUSSIA MOSCOW HAS LAUNCHED A MASSIVE DRIVE TO YANK THE COUNTRY'S PHONE SYSTEM OUT OF ITS ABYSMAL STATE OF POOR CONNECTIONS OVERLOADED EXCHANGES AND JUST FIFTEEN POINT THREE PHONE LINES PER ONE HUNDRED INHABITANTS ABOUT THE LEVEL OF URUGUAY OR DOMINICA UPGRADING THE SYSTEM TO A EUROPEAN AVERAGE LEVEL COULD COST AS MUCH AS ONE HUNDRED TWENTY BILLION DOLLARS AND SCORES OF WESTERN COMPANIES ARE HUSTLING FOR THE WORK TO START THE MODERNIZATION MOSCOW HAS HATCHED A BOLD PLAN TO RAISE AND SPEND FORTY BILLION DOLLARS OVER TEN YEARS IT CALLS THE PROJECT FIFTY BY FIFTY FOR THE FIFTY LONG DISTANCE TELEPHONE EXCHANGES AND FIFTY THOUSAND KILOMETERS OF LONG DISTANCE LINES ENVISIONED AND U. S. WEST IS AMONG THREE WESTERN COMPANIES THAT MOSCOW HAS SELECTED TO ADVISE ON THE PROJECT THE OTHERS ARE DEUTSCHE BUNDESPOST TELEKOM AND FRANCE TELECOM VICTOR PAVLENKO PRESIDENT OF U. S. WEST'S OPERATIONS IN RUSSIA AND ALSO PRESIDENT OF THE NEW VENTURE CONFIRMED THAT FIFTY BY FIFTY IS ONE OF THE PROJECTS IN WHICH THE VENTURE IS INTERESTED IN INVESTING PETER S. H. GRUBSTEIN THIRTY EIGHT YEARS OLD A DIRECTOR WAS APPOINTED TO ACT AS INTERIM CHIEF OPERATING OFFICER OF THIS MICROCOMPUTER SOFTWARE CONCERN ALEXANDER PAPAKYRIAKOU THIRTY NINE RESIGNED AS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER TO PURSUE OTHER INTERESTS THE LONG AWAITED TURNAROUND IN THE NEWSPAPER INDUSTRY FINALLY OCCURRED IN THE FOURTH QUARTER MANY ANALYSTS AGREE WITH MOST PREDICTING HEALTHY DOUBLE DIGIT EARNINGS INCREASES FOR MOST OF THE MAJOR PUBLISHERS QUOTE FOR THE NEWSPAPER INDUSTRY THE TURN IS DEFINITELY HERE THE QUESTION REMAINING IS HOW BIG OF A TURN IT WILL BE SAYS KENNETH BERENTS MANAGING DIRECTOR AND MEDIA ANALYST FOR WHEAT FIRST BUTCHER AND SINGER BASED IN RICHMOND VIRGINIA THIS IS THE BEST OUTLOOK I'VE SEEN FOR A NUMBER OF YEARS JOHN MORTON MEDIA ANALYST FOR LYNCH JONES AND RYAN IN NEW YORK CONCURS THE CHRISTMAS SEASON IS WHEN NEWSPAPERS MAKE A LOT OF THEIR MONEY AND IT WAS A GOOD SHOPPING SEASON MOST PLACES AROUND THE COUNTRY SAID MR. MORTON IN ADDITION HE SAYS CLASSIFIED ADVERTISING FINALLY BEGAN PICKING UP AT PAPERS AROUND THE COUNTRY DURING THE FOURTH QUARTER WHICH IS WHY MOST PEOPLE ARE CONFIDENT THE RECOVERY IS REALLY HERE KEVIN GRUNEICH A MANAGING DIRECTOR OF FIRST BOSTON CORPORATION SAID THAT IN THE AREA OF CLASSIFIED ADS HELP WANTED ADS WERE UP FOR THE FIRST THREE QUARTERS OF NINETEEN NINETY THREE BUT IN THE LAST QUARTER THE ADDITIONAL CLASSIFIED CATEGORIES OF REAL ESTATE AND AUTOMOBILES WERE ALSO PICKING UP IN MANY PARTS OF THE COUNTRY WHEN YOU COMBINE RISING ADVERTISING WITH THE COST CUTTING THAT'S BEEN DONE AND THE FACT THAT NEWSPRINT PRICES HAVEN'T RISEN MUCH YOU GET SOME PRETTY DECENT PROFIT COMPARISONS SAID MR. GRUNEICH MR. MORTON OF LYNCH JONES EXPECTS MIAMI BASED KNIGHT RIDDER INCORPORATED TO REPORT FOURTH QUARTER PER SHARE EARNINGS OF NINETY CENTS A SHARE UP FROM SEVENTY NINE CENTS HE ALSO EXPECTS A. H. BELO CORPORATION OF DALLAS TO REPORT SEVENTY THREE CENTS A SHARE UP FROM FIFTY SIX CENTS AND PROFITS AT CHICAGO'S TRIBUNE COMPANY TO RISE TO SEVENTY CENTS FROM FIFTY THREE CENTS LIKE MANY ANALYSTS MR. MORTON IS BULLISH ON ARLINGTON VIRGINIA BASED GANNETT COMPANY WHOSE EARNINGS HE EXPECTS TO RISE TO EIGHTY FIVE CENTS A SHARE FROM SEVENTY NINE CENTS SOME FORECASTS FOR GANNETT ARE MORE BULLISH SUCH AS THAT OF DORLAINE MCLAUGHLIN OF J. P. MORGAN SECURITIES INCORPORATED WHO EXPECTS GANNETT TO RISE TO NINETY CENTS A SHARE QUOTE GANNETT HAS A LOT OF SMALL PAPERS THAT ARE GEOGRAPHICALLY DIVERSIFIED AND WILL GET A BOOST FROM THE IMPROVING ECONOMY QUOTE SAID MS. MCLAUGHLIN SECONDLY U. S. A. TODAY FINALLY BECAME PROFITABLE IN NINETEEN NINETY THREE IN SOME PARTS OF THE COUNTRY THE ECONOMY ISN'T REBOUNDING AS BRISKLY AND THUS SOME NEWSPAPERS ARE STILL SUFFERING FROM SLUGGISH AD SALES BUT EVEN IN CASES SUCH AS TIMES MIRROR COMPANY BASED IN LOS ANGELES AND AFFECTED GREATLY BY THE TORPID CALIFORNIA ECONOMY MOST ANALYSTS AREN'T AS BEARISH AS THEY HAVE BEEN MICHAEL KUPINSKI A MEDIA ANALYST FOR A. G. EDWARDS AND SONS INCORPORATED EXPECTS TIMES MIRROR TO REPORT FOURTH QUARTER PROFIT OF FORTY CENTS A SHARE VERSUS YEAR AGO PROFIT OF THIRTY THREE CENTS A SHARE FROM CONTINUING OPERATIONS THE COMPANY REPORTED A NET LOSS OF FIFTY CENTS INCLUDING WRITE OFFS FROM DISCONTINUED BUSINESSES IT IS STILL LAGGING BEHIND THE GROUP BUT IT IS STARTING TO SHOW SOME SIGNS OF IMPROVEMENT SAYS MR. KUPINSKI HE IS RECOMMENDING THE STOCK BECAUSE HE BELIEVES THE COMPANY'S SITUATION WILL IMPROVE CONSIDERABLY BY THE END OF THIS YEAR HELPED BY THE OVERALL ECONOMY AND THE FACT THAT THE COMPANY IS A GOOD SIZE CABLE OPERATOR THE COMPANY HAS SAID IT MAY SELL OR SPIN OFF ITS CABLE ASSETS DESPITE THEIR GENERAL BULLISHNESS SOME ANALYSTS WORRY THAT THE STOCK MARKET HAS DRIVEN UP TOO RAPIDLY THOSE NEWSPAPER COMPANIES WITH CABLE TELEVISION HOLDINGS AMONG THOSE WITH CABLE DIVISIONS ARE TIMES MIRROR E. W. SCRIPPS COMPANY MEDIA GENERAL INCORPORATED WASHINGTON POST COMPANY AND KNIGHT RIDDER IN A RECENT INDUSTRY REPORT MR. MCLAUGHLIN OF J. P. MORGAN WARNED WE BELIEVE THE MARKET HAS OVERVALUED NEWSPAPER COMPANIES WITH CABLE SUBSIDIARIES BECAUSE IT WILL BE MORE DIFFICULT FOR THOSE COMPANIES VERSUS PURE PLAY CABLE OPERATORS TO SELL CABLE ASSETS IN A TAX EFFICIENT MANNER NONETHELESS MOST ANALYSTS PROJECT GOOD EARNINGS GAINS FOR THE NEWSPAPER COMPANIES IN NINETEEN NINETY FOUR IT WON'T BE AS SPECTACULAR AS IN PAST ECONOMIC RECOVERIES BUT WE EXPECT CONTINUED MODEST GROWTH THIS YEAR SAID MR. MORTON OF LYNCH JONES WE EXPECT OVERALL ADVERTISING LINAGE TO GROW ABOUT FOUR PERCENT OR FIVE PERCENT AND NEWSPAPER REVENUES TO RISE ABOUT NINE PERCENT OR TEN PERCENT RETAIL SALES CONTINUED TO RISE IN DECEMBER AND SALES FOR ALL OF NINETEEN NINETY THREE SHOWED THE STRONGEST ANNUAL INCREASE IN FOUR YEARS THE COMMERCE DEPARTMENT SAID SPURRED BY A JUMP IN DEMAND FOR BUILDING MATERIALS AND APPLIANCES SALES LAST MONTH CLIMBED ZERO POINT EIGHT PERCENT AFTER RISING ZERO POINT THREE PERCENT THE MONTH BEFORE SALES FOR ALL NINETEEN NINETY THREE ROSE SIX POINT TWO PERCENT SALES OF DURABLE GOODS ROSE ONE POINT SEVEN PERCENT LAST MONTH AS CONSUMERS TOOK ADVANTAGE OF LOW INTEREST RATES TO IMPROVE OR FURNISH THEIR HOMES SALES OF BUILDING MATERIALS ROSE TWO POINT SEVEN PERCENT AND FURNITURE SALES INCREASED ONE POINT EIGHT PERCENT AUTO SALES WERE UP ONE POINT TWO PERCENT FROM NOVEMBER QUOTE THE CONSUMER'S WALLET IS STILL OPEN QUOTE SAID ROBERT DEDERICK CHIEF ECONOMIST FOR NORTHERN TRUST COMPANY IN CHICAGO ADDING THAT QUOTE DESPITE CONCERNS ABOUT A SLOWING IN DECEMBER WE DIDN'T GET IT QUOTE HE PREDICTED CONTINUED STRONG SALES OF BUILDING SUPPLIES AND APPLIANCES AS THE ECONOMY FEELS THE EFFECTS OF THE HOUSINGSTARTS INCREASE OF SEVERAL MONTHS AGO BUT HE SAID RETAIL SALES COULD SUFFER IN THIS YEAR'S FIRST QUARTER BECAUSE OF BAD WEATHER OR OTHER REASONS PEOPLE THIS CHRISTMAS WERE MORE INTERESTED IN THE HARD GOODS SAID RON PIENCYKOSKI CHIEF OF THE COMMERCE DEPARTMENT'S RETAIL SALES AND INVENTORIES BRANCH CONSUMERS' SPENDING ON BIG TICKET ITEMS CAME AT THE EXPENSE OF SPENDING ON OTHER GOODS RETAIL SALES OF NONDURABLE GOODS INCREASED ONLY ZERO POINT THREE PERCENT FROM NOVEMBER'S FIGURE REFLECTING SHARP DECLINES IN RETAIL SALES OF CLOTHING WHICH FELL ZERO POINT NINE PERCENT AND GENERAL MERCHANDISE WHICH WAS DOWN ZERO POINT THREE PERCENT YOU DON'T BUY APPAREL IN THE SAME MONTH YOU BUY A NEW CAR SAID MR. DEDERICK THERE'S A LIMIT ON WHAT PEOPLE CAN SPEND SO YOU SEE A CROWDING OUT OF SOFT GOODS ALL FIGURES ARE ADJUSTED FOR SEASONAL VARIATION BEFORE SEASONAL ADJUSTMENT RETAIL SALES TOTALED TWO HUNDRED EIGHTEEN POINT TWO SIX BILLION DOLLARS LAST MONTH UP FROM ONE HUNDRED EIGHTY ONE POINT ONE THREE BILLION DOLLARS IN NOVEMBER SALES FOR ALL OF NINETEEN NINETY THREE TOTALED TWO POINT OH EIGHT FOUR TRILLION DOLLARS UP FROM ONE POINT NINE FIVE FIVE TRILLION DOLLARS IN NINETEEN NINETY TWO WHEN SALES ROSE FOUR POINT EIGHT PERCENT ALAN GREENSPAN CHAIRMAN OF THE FEDERAL RESERVE BOARD IS RIGHT TO RESIST THE CLINTON ADMINISTRATION'S PLAN TO IMPOSE A SINGLE BANK REGULATOR ABOVE THE FED THE F. D. I. C. THE COMPTROLLER OF THE CURRENCY AND THE O. T. S. QUOTE NO SINGLE REGULATOR FOR BANKS QUOTE EDITORIAL PAGE DECEMBER FIFTEENTH THE PRETENSE THAT AN INEFFICIENT REGULATORY REGIMEN CAN BE IMPROVED BY ADDING ONE MORE LAYER OF REGULATION IS WRONG SUBORDINATING THE FED TO AN OVERARCHING REGULATORY APPARATUS FOR NARROW SHORTTERM POLITICAL PURPOSES WOULD BE HARMFUL NOT ONLY TO THE NATIONAL ECONOMY BUT TO THE URBAN AND RURAL POOR SINGLE MOTHERS AND MINORITIES ON THE ECONOMIC MARGINS WHO HAVE THE MOST TO LOSE FROM INFLATION AND HIGH LONG TERM INTEREST RATES FROM DE TOCQUEVILLE TO HAYEK THE GREATEST OBSERVERS OF POLITICAL ECONOMY HAVE ARGUED THAT THE MORE CENTRALIZED ADMINISTRATIVE REGULATION BECOMES THE LESS RESPONSIVE IT IS TO THE VITAL NEEDS OF SOCIETY OVERREGULATION MAKES FINANCIAL INSTITUTIONS MORE CONSERVATIVE TIMID AND UNWILLING TO TAKE RISKS OF INNOVATION EITHER IN THE FORMS OF SAVINGS AND CREDIT OR IN THEIR OWN INVESTMENT STRATEGIES NUMEROUS STUDIES SHOW A LACK OF AVAILABLE CREDIT IN MINORITY COMMUNITIES THE AUTOMATIC EXPLANATION OF THIS OUTCOME IS THAT IT IS PRODUCED BY RACIAL BIAS WHAT IS UNEXAMINED HOWEVER IS THE ROLE OF EXCESSIVE REGULATION IN DISCOURAGING INSTITUTIONS FROM PROVIDING CREDIT TO MINORITY ENTERPRISES AND HOME OWNERS ESPECIALLY IN HIGH RISK URBAN AREAS JUST AS THE ADMINISTRATION'S EFFORT TO CENTRALIZE BANKING REGULATION IS MISGUIDED SO ITS MONETARY POLICIES ARE MISCHIEVOUS MONEY AFTER ALL REPRESENTS ONE OF THE MOST SOLEMN MORAL COMMITMENTS A GOVERNMENT CAN MAKE THE PROMISE THAT THE NATION'S MONEY WILL HOLD THE SAME VALUE AS FAR INTO THE FUTURE AS THE EYE CAN SEE ANYTHING LESS OR MORE THAN THAT FOR EXAMPLE POLICIES THAT CAUSE PRICE LEVEL INFLATION OR DEFLATION UNJUSTLY REVOKES THAT PROMISE AND DEFRAUDS THE PUBLIC OF EXPECTATIONS ON WHICH BY VIRTUE OF THEIR LABOR SAVINGS AND INVESTMENT THEY HAVE A NATURAL RIGHT TO EXPECT WHEN THE CENTRAL BANK FOR WHATEVER REASON ADOPTS POLICIES AIMED AT ANY GOAL OTHER THAN LONG TERM PRICE STABILITY IT BREAKS THAT TRUST IN THE FUTURE VALUE OF MONEY UNDERMINING FAITH IN THE MOST SOLEMN GOVERNMENT COMMITMENTS PEOPLE ARE THEN COMPELLED TO ADAPT TO CHANGING MONETARY VALUES AND UNCERTAINTY BY RAISING LONG TERM INTEREST RATES THE INEFFICIENCY AND MISCOORDINATION CAUSED BY MONETARY UNCERTAINTY REVERSES ALL THE BENEFITS WE HAVE SEEN OVER THE PAST YEAR SUCH AS MORE AFFORDABLE HOUSING ONE POINT EIGHT MILLION NEW JOBS AND INCREASED CONFIDENCE IN OUR ECONOMIC FUTURE THOSE WHO HAVE WEALTH WILL BE ABLE TO ADJUST AND PROTECT THEIR ASSETS THE FULL IMPACT OF THIS WILL BE BORNE BY THOSE WHO DO NOT OWN HOMES FARMS BUSINESSES OR OTHER ASSETS THAT COULD HOLD VALUE WHILE MONETARY VALUES ARE BEING MANIPULATED THIS WILL HAVE A DISPARATE IMPACT ON MINORITIES AND THE POOR KEEPING THE COMMITMENT TO A STABLE CURRENCY IS A TASK THAT CAN BE DISCHARGED BY FOLLOWING A PRICE RULE SUCH AS LINKING THE DOLLAR TO GOLD WHICH THE U. S. DID UNTIL NINETEEN SEVENTY ONE THERE IS REASON TO BELIEVE THAT THE FEDERAL RESERVE BOARD HAS BEEN SILENTLY TARGETING PRICE LEVELS FOR SOME TIME NOW PRODUCING THE DECLINE IN INTEREST RATES THAT HAS BEEN THE CURRENT ECONOMIC EXPANSION IF THIS POLICY WERE MADE EXPLICIT EITHER BY THE FED OR BY STATUTE WE ARE CONFIDENT THAT FURTHER RATE REDUCTIONS TO THE THREE PERCENT TO FOUR PERCENT AREA COULD BE FORTHCOMING AS PEOPLE REGAIN TRUST IN THE DOLLAR'S LONG TERM VALUE A PHENOMENAL OUTPOURING OF CAPITAL FOR LONG TERM PRIVATE AND PUBLIC INVESTMENT COULD MAKE FEASIBLE ALL KINDS OF PROJECTS INCLUDING THE URBAN INFRASTRUCTURE IMPROVEMENTS WE NEED BUT ONLY DREAM ABOUT TODAY COMMISSIONERS ROBERT P. GEORGE AND CARL A. ANDERSON ALSO SIGNED THIS LETTER WHEN KENNETH SPENCE A THIRTY THREE YEAR OLD MECHANIC ENTERED JACKSON MEMORIAL HOSPITAL LAST OCTOBER HE BELIEVED ALL HE HAD WAS A BAD CASE OF THE FLU BY THE TIME RICHARD GREENMAN AN INFECTIOUS DISEASE SPECIALIST WAS CALLED IN TWO DAYS LATER MR. SPENCE WAS UNCONSCIOUS AND ON A RESPIRATOR FLUID HAD BEGUN SEEPING INTO HIS LUNGS TO THE POINT WHERE HE WOULD SOON STAND A GOOD CHANCE OF SUFFOCATING HIS DOCTORS AT JACKSON WHICH IS AFFILIATED WITH THE UNIVERSITY OF MIAMI'S MEDICAL SCHOOL WERE BAFFLED HAD THIS BEEN THE SOUTHWEST DOCTOR GREENMAN OBSERVED MR. SPENCE MIGHT HAVE BEEN DIAGNOSED AS HAVING A QUOTE CLASSIC CASE QUOTE OF HANTAVIRUS PULMONARY SYNDROME THAT IS THE DEADLY RODENT BORN DISEASE FIRST IDENTIFIED AFTER AN OUTBREAK AMONG NAVAJO INDIANS LAST MAY IN THE SO CALLED FOUR CORNERS REGION OF THE COUNTRY WHERE ARIZONA UTAH COLORADO AND NEW MEXICO MEET BUT THE MOUSE BLAMED FOR THE DISEASE THE DEER MOUSE OR PEROMYSCUS MANICULATUS WASN'T THOUGHT TO LIVE IN SOUTH FLORIDA SO I SAID WE'RE THEREFORE GOING TO CALL THIS A CASE OF HANTAVIRUS PULMONARY SYNDROME HA HA BECAUSE IT DOESN'T EXIST HERE YET DOCTOR GREENMAN RECALLS AND WE'LL SEND OFF ALL THE DIAGNOSTIC STUFF TO SEE IF ANYONE COMES UP WITH ANOTHER ANSWER AFTER NEARLY A MONTH IN INTENSIVE CARE MR. SPENCE RECOVERED AND LEFT THE HOSPITAL STILL UNAWARE OF WHAT HAD ALMOST KILLED HIM ON TUESDAY THE CENTERS FOR DISEASE CONTROL IN ATLANTA CONFIRMED THAT MR. SPENCE HAD INDEED BEEN INFECTED BY HANTAVIRUS AND IN THE PROCESS RAISED FRESH CONCERNS THAT THE VIRUS AND ITS KILLER SYNDROME MAY OCCUR OVER A FAR WIDER RANGE THAN ONCE THOUGHT MR. SPENCE HAD BECOME THE FIFTY FOURTH VICTIM OF THE NEW DISEASE AND ONLY ITS TWENTY SECOND SURVIVOR THE NEWS OF HIS INFECTION FOLLOWED ON THE HEELS OF OTHER EVIDENCE OF THE VIRUS'S LONG GEOGRAPHIC REACH JUST THE WEEK BEFORE KANSAS HEALTH OFFICIALS BEGAN INVESTIGATING THE JANUARY THIRD DEATH OF AN EIGHTEEN YEAR OLD GIRL IN GARDEN CITY KANSAS WHO THEY SUSPECT MAY BE THE STATE'S SECOND HANTAVIRUS VICTIM THAT SAME WEEK THE C. D. C. CONFIRMED THAT THE DEATH OF A FOURTEEN YEAR OLD BOY IN COEUR D'ALENE IDAHO WAS THE STATE'S THIRD CASE OF THE VIRUS ONE OF THE NATION'S FOREMOST HANTAVIRUS INVESTIGATORS GREGORY GURRI GLASS OF THE JOHNS HOPKINS SCHOOL OF PUBLIC HEALTH SPENT THIS WEEK TRAPPING RODENTS IN KANSAS AND IDAHO AND WAS BOUND NEXT FOR FLORIDA THE DISEASE IS STILL RELATIVELY RARE ESPECIALLY WHEN COMPARED WITH THE THOUSANDS OF CASES OF LYME DISEASE DIAGNOSED EACH YEAR NONETHELESS THE VIRUS HAS NOW TURNED UP IN FIFTEEN STATES RANGING FROM FLORIDA TO NORTH DAKOTA TO CALIFORNIA ONE DEATH OF A TWENTY TWO YEAR OLD MAN TOOK PLACE IN SAN FRANCISCO ACCORDING TO THE C. D. C. RESEARCHERS NOW SUSPECT THE VIRUS MAY BE PRESENT IN DEER MICE AND OTHER RODENT SPECIES THROUGHOUT THE U. S. PROMPTING WIDESPREAD CALLS FOR RESTORATION OF FEDERAL RODENT CONTROL PROGRAMS AND WARNINGS FROM STATE HEALTH DEPARTMENTS ABOUT THE NEW HAZARDS OF MICE IN THE HOME INCLUDING ADVICE TO WEAR GLOVES WHENEVER REMOVING A MOUSE FROM A TRAP AND TO USE HOUSEHOLD DISINFECTANTS ON AREAS WHERE MICE ARE THOUGHT TO TREAD WE'RE JUST TELLING EVERYONE TO TREAT EVERY MOUSE AS IF IT'S INFECTED SAYS LORI RICHARDSON ADMINISTRATOR OF THE HEALTH DEPARTMENT IN MORTON COUNTY KANSAS HOME OF THE STATE'S ONLY CONFIRMED HANTAVIRUS VICTIM THE VICTIM A THIRTY FOUR YEAR OLD PREGNANT WOMAN DIED LAST FALL THE RECENT CASES AND OTHERS LAST YEAR DEMONSTRATE BEYOND DOUBT THAT THE VIRUS IS ANYTHING BUT A NAVAJO DISEASE AS EARLY PRESS REPORTS SUGGESTED ITS VICTIMS RANGE IN AGE FROM TWELVE TO SIXTY NINE AND INCLUDE A TWENTY SEVEN YEAR OLD WILDLIFE RESEARCHER WHO DIED LAST YEAR IN CALIFORNIA AND A FIFTY EIGHT YEAR OLD LOUISIANA BRIDGE WORKER WHO ALSO DIED THE HANTAVIRUS IN QUESTION IS ACTUALLY ONE OF A FAMILY OF SIMILAR VIRUSES KNOWN TO CAUSE HEMORRHAGIC FEVER IN EUROPE AND ASIA AND TO HAVE SICKENED THOUSANDS OF SOLDIERS DURING THE KOREAN WAR OTHER MORE BENIGN STRAINS OF HANTAVIRUS HAVE LONG BEEN KNOWN TO RESIDE IN U. S. RATS AND MICE BUT UNTIL THE FOUR CORNERS OUTBREAK LAST SUMMER RESEARCHERS HAD FOUND ONLY LIMITED EVIDENCE THAT THE VIRUSES CAUSED DISEASE RESEARCH IN BALTIMORE PUBLISHED JUST TWO MONTHS BEFORE THE OUTBREAK FOUND EVIDENCE ONLY THAT ONE STRAIN SEEMED TO BE IMPLICATED IN CAUSING A FORM OF HYPERTENSION IN RESIDENTS WHO HAD BEEN EXPOSED TO RATS THE NEWLY RECOGNIZED VIRUS WHEN AT ITS WORST IS A GROTESQUE KILLER THE SYNDROME IT TRIGGERS BEGINS INNOCENTLY ENOUGH WITH SYMPTOMS OF A SEVERE COLD OR FLU SOME PATIENTS EVEN BEGIN TO FEEL BETTER WITH STUNNING SPEED HOWEVER THE LUNGS FILL WITH FLUIDS THAT LEAK FROM CAPILLARIES LINING THE LUNGS THREE OF FIVE PATIENTS DIE THEY LITERALLY DROWN SAYS RIMA KHABBAZ MEDICAL EPIDEMIOLOGIST ON THE C. D. C.'S HANTAVIRUS TASK FORCE NO CURE EXISTS ALL DOCTORS CAN DO SHE SAYS IS PROVIDE SUPPORTIVE CARE AS OMINOUS AS THE NEWS OF NEW CASES MAY BE RESEARCHERS SAY THE BIG MYSTERY OF THE DISEASE IS WHY MORE PEOPLE DON'T GET INFECTED DEER MICE ARE COMMON ANYONE WHO LIVES IN THE COUNTRY HAS HAD THEM IN THEIR HOUSE WHETHER THEY'D ADMIT IT OR NOT OR IF THEY EVEN KNEW IT OR NOT SAYS HOPKINS'S MR. GLASS BUT HE AND OTHER HANTAVIRUS RESEARCHERS NOW THINK IT IS FAIRLY DIFFICULT TO CONTRACT THE VIRUS PEOPLE GET IT THROUGH SOME FORM OF DIRECT CONTACT WITH THE MICE OR THEIR WASTES AS BY BREATHING RESIDUES OF FECES AND URINE BUT THE VIRUS DOESN'T READILY SKIP TO HUMANS AND WHILE IT IS READILY TRANSFERRED FROM RODENT TO RODENT IT APPARENTLY CAN'T BE PASSED FROM PERSON TO PERSON QUOTE THE VIRUS DOESN'T DO WELL ENOUGH IN HUMANS QUOTE SAYS MR. GLASS INDEED ONE THEORY HOLDS THAT THE LETHAL DAMAGE IS NOT DONE BY THE RAPID GROWTH OF THE VIRUS IN THE BODY BUT BY THE BODY'S IMMUNE RESPONSE TO A RELATIVELY LIMITED INFECTION THOSE WHO DIE MAY HAVE EXPERIENCED AN ESPECIALLY POWERFUL IMMUNE RESPONSE AND THIS ADDS UP TO GOOD NEWS SAYS MR. GLASS YOU DON'T HAVE THE POTENTIAL FOR AN INCREDIBLY EXPLOSIVE OUTBREAK THE REALLY SCARY PLAGUE TYPE THING WE OFTEN THINK OF NONETHELESS THE POTENTIAL FOR PANIC IS HIGH ESPECIALLY IN COMMUNITIES WHERE A SUSPECTED INFECTION HAS OCCURRED IN GARDEN CITY KANSAS FOR EXAMPLE IT'S FLU SEASON HOW DO YOU SORT OUT WHETHER YOU'VE GOT THE FLU FROM WHETHER YOU'RE GOING TO BE DEAD SAYS MR. GLASS THERE'S A TREMENDOUS COST IN TERMS OF THE UNEASE AND PANIC AND UNCERTAINTY IT PRODUCES IN A COMMUNITY WHEN YOUR NEXT DOOR NEIGHBOR DROPS DEAD FROM SOMETHING THAT YOU CAN'T SEE AND CAN'T DO MUCH ABOUT PEOPLE FIND THAT VERY SCARY AND THREATENING WHEN THE VIRUS STRUCK THE NAVAJO RESERVATION LAST YEAR SOME NON INDIANS IN THE AREA CAME TO TREAT NAVAJOS AS DISEASE VECTORS GEORGE BRENNEMAN ASSOCIATE DIRECTOR OF THE HOPKINS CENTER FOR AMERICAN INDIAN AND ALASKAN NATIVE HEALTH HEARD REPORTS OF NAVAJO CHILDREN AT SCHOOL BEING EXCLUDED FROM SOME ACTIVITIES PSYCHOLOGICALLY IT HAD A VERY POWERFUL IMPACT BECAUSE THE DISEASE LOOKED LIKE A VERY BAD THING COMING FROM THE NAVAJO INDIANS HE SAYS QUOTE IT TURNED INTO KIND OF A LEPROSY THING QUOTE THE SENSITIVITY LINGERS THE C. D. C. WANTED TO NAME THE NEW HANTA STRAIN FOUR CORNERS VIRUS IN KEEPING WITH THE PRACTICE OF NAMING OTHER STRAINS FOR THE PLACES WHERE THEY WERE IDENTIFIED SUCH AS SEOUL VIRUS AND HANTAAN VIRUS NAMED FOR A RIVER IN SOUTH KOREA FROM WHICH THE ENTIRE FAMILY TAKES ITS NAME NAVAJO TRIBAL OFFICIALS OBJECTED BALKING AT ANY NAME THAT MIGHT FOREVER LINK THE DISEASE TO THE NAVAJO NATION THE C. D. C. RECENTLY SUBMITTED A NEW NAME MUERTO CANYON OR DEATH CANYON AFTER A SITE IN THE FOUR CORNERS AREA A FINAL NAME WON'T BE CHOSEN UNTIL THE NINETEEN NINETY SIX MEETING IN ISRAEL OF THE INTERNATIONAL COMMITTEE ON TAXONOMY OF VIRUSES WHICH DECIDES SUCH THINGS ALTHOUGH THE FOUR CORNERS OUTBREAK LED TO DISCOVERY OF THE NEW STRAIN RESEARCHERS NOW BELIEVE THE VIRUS HAS EXISTED A VERY LONG TIME HANTAVIRUS PULMONARY SYNDROME SIMPLY WAS NEVER RECOGNIZED PAST DEATHS MAY HAVE BEEN LEFT UNDIAGNOSED OR ATTRIBUTED TO ADULT RESPIRATORY DISTRESS SYNDROME ARDS A KIND OF CATCH ALL CATEGORY FOR ILLNESS INVOLVING SEVERE EDEMA OF THE LUNGS INDEED FOLLOWING THE FOUR CORNERS OUTBREAK EPIDEMIOLOGISTS AND VIROLOGISTS BEGAN LOOKING FOR THE VIRUS IN LONG PAST CASES TYPICALLY BY ANALYZING PRESERVED BLOOD AND TISSUE SAMPLES ANALYSIS OF TISSUE FOR EXAMPLE IDENTIFIED THE SAN FRANCISCO CASE THE YOUNG MAN HAD DIED OF THE DISEASE IN NINETEEN EIGHTY THE REASON SO MANY CASES HAVE BEGUN APPEARING NOW TWELVE NEW ONES SINCE THE C. D. C.'S LAST COMPREHENSIVE REPORT IN OCTOBER IS BECAUSE NOW RESEARCHERS KNOW WHAT TO LOOK FOR THE FIRST KANSAS CASE FOR EXAMPLE WAS DIAGNOSED AFTER THE WOMAN'S DEATH WHEN A COUNTY PATHOLOGIST INTRIGUED BY THE CASE SENT TISSUE SAMPLES TO THE C. D. C. AT FIRST INVESTIGATORS BELIEVED SHE HAD CONTRACTED THE VIRUS DURING AN INTENSIVE TWO WEEK PERIOD OF HOUSECLEANING AFTER SHE AND HER FAMILY MOVED INTO A FARM HOUSE THAT HAD BEEN EMPTY FOR ABOUT TWO YEARS BUT THE MOVE TOOK PLACE IN MAY SHE DIDN'T GET SICK UNTIL SEPTEMBER HER HUSBAND HOWEVER LATER TOLD INVESTIGATORS THAT HIS WIFE A FASTIDIOUS HOUSEKEEPER ROUTINELY SET OUT TRAPS TO CATCH MICE AND DISPOSED OF ONE OR TWO A WEEK THE DISEASE WAS SELECTIVE USING TESTS FOR HANTAVIRUS ANTIBODIES INVESTIGATORS FOUND THAT HER HUSBAND AND TWO CHILDREN HAD NEVER EVEN BEEN EXPOSED TO THE VIRUS IT TELLS US THERE'S NO PERSON TO PERSON TRANSMISSION AND THAT IT'S NOT QUITE THE SCARE IT SHOULD HAVE BEEN SAYS LORI RICHARDSON THE COUNTY HEALTH ADMINISTRATOR SCARY ENOUGH HOWEVER FOR SURROUNDING RESIDENTS I'M REALLY QUITE AFRAID SAYS TOMMIE HENNEBERRY COOK AND WAITRESS AT SPANGLES RESTAURANT IN THE EL RANCHO MOTEL IN ELKHART I DON'T PARTICULARLY WANT TO DIE EXPERTS AT THE C. D. C. AND ELSEWHERE SAY THE DISEASE IS DIRECTLY RELATED TO THE DEGREE OF CONTACT BETWEEN HUMANS AND RODENTS AND THAT THE MOST DANGEROUS TIME IS DURING SEASONAL SHIFTS OR OTHER ECOLOGICAL UPHEAVALS THAT INCREASE SUCH CONTACT THEY BELIEVE THE FOUR CORNERS OUTBREAK OCCURRED WHEN IT DID BECAUSE THE POPULATION OF DEER MICE HAD EXPLODED AFTER A SINGULARLY HOSPITABLE WINTER WHEN SUMMER ARRIVED AND THE LAND BEGAN TO DRY OUT AND FOOD SUPPLIES TO WITHER THE MICE BEGAN LOOKING FOR NEW SOURCES OF FOOD AND SHELTER SO THEY ENDED UP IN PEOPLE'S HOUSES SAYS HOPKINS'S MR. GLASS IN TEMPERATE NORTHERN REGIONS HE SAYS THE SAME KIND OF THING OCCURS IN WINTER BASICALLY HE SAYS THESE MICE ARE LOOKING FOR SOME PLACE TO STAY WARM AND MAKE IT THROUGH THE WINTER ALIVE INDEED SOME FLORIDA OFFICIALS SUSPECT KENNETH SPENCE CONTRACTED HANTAVIRUS BECAUSE OF CHANGES IN THE AREA'S RODENT POPULATION IN THE WAKE OF HURRICANE ANDREW WHICH RAVAGED MUCH OF SOUTH FLORIDA IN AUGUST NINETEEN NINETY TWO THE DEER MOUSE MAY NOT LIVE HERE BUT RODENT EXPERTS SAY ITS CLOSE RELATIVES DO ANITA BOCK THE TOP LOCAL OFFICIAL OF THE STATE'S HEALTH AND REHABILITATIVE SERVICES DEPARTMENT CITES QUOTE A VERY SIGNIFICANT RODENT PROBLEM QUOTE IN THE SOUTH PART OF THE COUNTY THE AREA HARDEST HIT BY THE HURRICANE EVEN BEFORE ANDREW SHE SAYS RODENT CONTROL WAS BEING HAMPERED BY FUNDING CUTBACKS SHE STRESSES HOWEVER THAT HANTAVIRUS PULMONARY SYNDROME IS AN EXTREMELY RARE DISEASE AND ADDS WE DON'T HAVE ANY CONCERNS OF AN OUTBREAK IN DADE COUNTY AND OTHERS CAUTION AGAINST MAKING TOO MUCH OF THE ANDREW CONNECTION WE HAVE VERY LITTLE OBJECTIVE EVIDENCE TO SUPPORT THAT SAYS GARY HLADY THE STATE'S DIRECTOR OF COMMUNICABLE DISEASE EPIDEMIOLOGY MR. SPENCE'S PROBLEMS BEGAN LAST OCTOBER TWENTIETH WHEN HE DEVELOPED A FEVER CHILLS AND BODY ACHES I THOUGHT I WAS COMING DOWN WITH THE FLU HE SAYS SO I TOOK A COUPLE OF TYLENOL AND WENT TO BED AT THE TIME HE WAS LIVING IN A COUNTY RUN DRUG TREATMENT FACILITY IN SOUTH DADE AS HIS CONDITION WORSENED HE SOUGHT OUT THE FACILITY'S DOCTOR ON OCTOBER TWENTY SECOND A FRIDAY SHE SENT HIM TO THE EMERGENCY ROOM AT JACKSON MEMORIAL DOCTORS QUICKLY TRANSFERRED HIM TO THE INTENSIVE CARE UNIT ON SATURDAY SAYS MR. SPENCE ALL HELL BROKE LOOSE HE BEGAN HAVING SEVERE PROBLEMS BREATHING ALONG WITH QUOTE EXCRUCIATING QUOTE ABDOMINAL PAIN THE DOCTORS PLACED HIM ON A RESPIRATOR HE DOESN'T REMEMBER THAT HOWEVER HE HAD ALREADY LOST CONSCIOUSNESS TWO WEEKS LATER HE SAYS I CAME TO HE RECOVERED GRADUALLY AND LEFT THE HOSPITAL NOVEMBER THIRTEENTH HE IS HE SAYS SIMPLY GLAD TO BE ALIVE THE DOCTORS AND NURSES TELL ME I SHOULD THANK GOD EVERY DAY HE SAYS BECAUSE I AM A MIRACLE RESEARCHERS SAY THEY NOW UNDERSTAND THE DYNAMICS OF THE NEW HANTAVIRUS ENOUGH TO PROJECT ITS BEHAVIOR YOU'RE GOING TO SEE CASES HERE AND THERE SORT OF LIKE WHAT'S HAPPENING NOW SAYS MR. GLASS BUT SUPERIMPOSED ON THAT HE SAYS WILL BE AN OCCASIONAL LARGER OUTBREAK LIKE THE ONE IN FOUR CORNERS CAUSED BY SUDDEN ENVIRONMENTAL PRESSURE ON BOOMING RODENT POPULATIONS RESEARCHERS CAUTION HOWEVER THAT IT WOULD BE A MISTAKE TO UNDERESTIMATE THIS OR ANY OTHER EMERGING VIRUS THE ADVENT OF H. I. V. THE VIRUS THAT CAUSES AIDS TAUGHT THAT LESSON THE HARD WAY SAYS STEPHEN MORSE A VIROLOGIST AT ROCKEFELLER UNIVERSITY IN NEW YORK CITY AND AN EXPERT ON EMERGING VIRUSES UNTIL THEN HE AND OTHER RESEARCHERS AGREE MEDICINE HAD BEGUN TO VIEW INFECTIOUS DISEASE AS A THING OF THE PAST QUOTE WE HAD GOTTEN COMPLACENT QUOTE HE SAYS THE NEW HANTAVIRUS AND THE EXPANSION OF OTHER NEW OR ASCENDANT INFECTIONS SUCH AS AIDS AND LYME DISEASE CONSTITUTE A WARNING HE SAYS IT REMINDS US THAT WE WILL CONTINUE TO SEE OUTBREAKS OF INFECTIOUS DISEASES CAUSED IN SOME CASES BY FAMILIAR THINGS LIKE INFLUENZA AND IN SOME CASES BY UNFAMILIAR THINGS LIKE THE HANTAVIRUSES THE MESSAGE IS THESE VIRUSES AND INFECTIONS DO HAVE A FUTURE THERE ARE LOTS OF THEM OUT THERE IT'S IMPORTANT FOR US TO KEEP ON TOP OF THEM IF WE WANT TO HAVE A FUTURE COMPUTER OUTSOURCING SERVICES INCORPORATED A PROVIDER OF DATA PROCESSING AND PAYROLL OUTSOURCING SERVICES COMPLETED THE ACQUISITION OF TRU CHECK COMPUTER SYSTEMS INCORPORATED AN INFORMATION PROCESSING COMPANY AMERICAN MEDICAL HOLDINGS INCORPORATED'S OPERATING COMPANY AMERICAN MEDICAL INTERNATIONAL INCORPORATED SIGNED A LETTER OF INTENT TO ACQUIRE THE ASSETS OF SAINT FRANCIS HOSPITAL MEMPHIS TENNESSEE TERMS WEREN'T DISCLOSED REHABILITY CORPORATION ACQUIRED THREE REHABILITATION CENTERS NEAR ORLANDO FLORIDA TERMS WEREN'T DISCLOSED CORRPRO COMPANIES MEDINA OHIO COMPLETED THE ACQUISITION OF THE OPERATING ASSETS OF GOOD ALL ELECTRIC INCORPORATED FORT COLLINS COLORADO FROM VALMONT INDUSTRIES INCORPORATED VALLEY NEBRASKA TERMS WEREN'T DISCLOSED PARK OHIO INDUSTRIES INCORPORATED COMPLETED THE SWAP OF ITS PEOTONE ILLINOIS STEEL CONTAINER PLANT IN RETURN FOR CLEVELAND STEEL CONTAINER'S PLASTIC CONTAINER FACILITY IN CLEVELAND PARK OHIO ADDED THREE MILLION DOLLARS CASH TO THE EXCHANGE COOPER COMPANIES AND FORMER CO CHAIRMAN GARY SINGER WERE CONVICTED OF PARTICIPATING IN AN ILLEGAL JUNK BOND TRADING SCHEME THAT GENERATED THREE POINT FIVE MILLION DOLLARS IN PROFITS MR. SINGER CO CHAIRMAN OF THE HEALTH PRODUCTS COMPANY FROM NINETEEN EIGHTY EIGHT UNTIL NINETEEN NINETY TWO WAS CONVICTED OF TWENTY ONE COUNTS INCLUDING RACKETEERING CHARGES CONSPIRACY AND FRAUD THE COMPANY WAS CONVICTED OF SEVEN COUNTS OF FRAUD BUT WAS ACQUITTED OF CONSPIRACY UNLIKE MR. SINGER THE COMPANY WASN'T CHARGED UNDER THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW IN U. S. DISTRICT COURT HERE PROSECUTORS ALLEGED THAT MR. SINGER PAID SEVEN HUNDRED THOUSAND DOLLARS IN CORPORATE FUNDS TO TWO FORMER JUNK BOND ANALYSTS IN RETURN FOR INFORMATION ABOUT PLANNED JUNK BOND PURCHASES THAT INFORMATION ENABLED THE COOPER EXECUTIVE TO BUY THE BONDS BOTH FOR THE COMPANY'S AND HIS FAMILY'S ACCOUNTS AHEAD OF THE TRANSACTIONS PROSECUTORS ALLEGED MR. SINGER THEN RESOLD THE BONDS MAKING THREE POINT FIVE MILLION DOLLARS IN ILLEGAL PROFITS PROSECUTORS CHARGED SENTENCING WAS SET FOR MARCH TWENTY FIFTH FOR BOTH MR. SINGER AND THE FORT LEE N. J. BASED COMPANY BECAUSE HE WAS CONVICTED UNDER RICO MR. SINGER COULD FACE FORFEITURE PROCEEDINGS TO RECOVER THE ILLEGAL PROFITS HE ALLEGEDLY MADE MR. SINGER ALSO FACES THE POSSIBILITY OF A STIFF PRISON SENTENCE AND BOTH DEFENDANTS FACE POSSIBLE FINES OF SEVERAL HUNDRED THOUSAND DOLLARS CHARLES STILLMAN AN ATTORNEY FOR MR. SINGER SAID THE VERDICT WILL BE APPEALED THEODORE V. WELLS JUNIOR AN ATTORNEY FOR COOPER SAID THE COMPANY IS CONSIDERING WHETHER TO APPEAL BOTH MESSRS STILLMAN AND WELLS SAID THE JURY'S DECISION APPEARED TO BE INCONSISTENT ON SOME POINTS FOR INSTANCE THE SAME ACTS WERE INVOLVED IN SEVERAL OF THE CHARGES BUT THE JURY DIDN'T CONVICT ON ALL THOSE COUNTS QUOTE THE POTENTIAL INCONSISTENCY IS SOMETHING WE NEED TO EXPLORE TO SEE WHAT IMPACT IF ANY IT WILL HAVE ON THE FUTURE OF THIS CASE QUOTE MR. STILLMAN SAID COOPER'S SUPPORTIVE STANCE TOWARD MR. SINGER HAS DRAWN THE IRE OF THE SECURITIES AND EXCHANGE COMMISSION WHICH MAINTAINS THE COMPANY AT THE EXPENSE OF PROTECTING SHAREHOLDERS BACKED MR. SINGER AFTER THE ALLEGATIONS AGAINST HIM WERE DISCLOSED THE S. E. C. HAS A SEPARATE CIVIL LAWSUIT PENDING AGAINST COOPER MR. SINGER AND MR. SINGER'S BROTHER STEVEN ALSO AN EXECUTIVE AT THE COMPANY THE SINGER FAMILY CONTROLS ABOUT TEN PERCENT OF THE COMPANY'S STOCK SAID WILLIAM MCLUCAS THE S. E. C.'S DIRECTOR OF ENFORCEMENT THE S. E. C.'S SUIT MAKES SOME OF THE SAME ALLEGATIONS THAT WERE IN THE CRIMINAL CASE AND ADDS SOME OTHER ALLEGED VIOLATIONS THE S. E. C. SUIT ASKS THAT THE DEFENDANTS BE ORDERED TO TURN OVER MORE THAN THREE MILLION DOLLARS IN ALLEGED ILLEGAL PROFITS AND PAY ADDITIONAL CIVIL PENALTIES COOPER WHICH HAS REPORTED LOSSES OVER SEVERAL QUARTERS AS A RESULT OF BREAST IMPLANT LITIGATION AND HAS RECENTLY ANNOUNCED A DEBT RESTRUCTURING MAKES CONTACT LENSES SURGICAL EQUIPMENT AND RUNS PSYCHIATRIC HOSPITALS IT WAS TAKEN OVER BY THE SINGERS WHO HAD PREVIOUSLY RUN A WESTCHESTER N. Y. CONSTRUCTION BUSINESS AND ANOTHER FAMILY IN NINETEEN EIGHTY EIGHT BUT WITHIN A YEAR OF THE TAKEOVER MOST OF THE COMPANY'S DIVISIONS INCLUDING ITS BREAST IMPLANT DIVISION WERE SOLD IN A SERIES OF CONTROVERSIAL DEALS AND ITS STOCK PRICE TUMBLED ABOUT SEVENTY PERCENT THE ALLEGED WRONGDOING OCCURRED IN NINETEEN NINETY ONE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COOPER CLOSED AT SIXTY TWO POINT FIVE CENTS DOWN TWELVE POINT FIVE CENTS TIME IS MONEY EVEN IN THE SENATE AND THE CHAMPIONS OF THE FILIBUSTER ARE DEVOTING MILLIONS TO SAVE MINUTES OF COOLING THEIR HEELS ALONG THE CAPITOL SUBWAY FOR EIGHTEEN MILLION DOLLARS IN TAXPAYER MONEY THEY'RE BUILDING A HIGH TECH DISNEY ERA QUOTE PEOPLE MOVER QUOTE FOR VERY IMPORTANT PEOPLE THAT FIGURE TRANSLATES INTO ABOUT ONE POINT FIVE MILLION DOLLARS FOR EVERY ONE HUNDRED YARDS THE THOUSANDS OF TOURISTS WHO VENTURE DOWN INTO THE CAPITOL BASEMENT CAN HITCH A RIDE AS WELL BUT THE DRIVING FORCE BEHIND THE PROJECT IS THE NEED TO SPEED SENATORS TO THE CAPITOL FROM THEIR NEWEST OFFICE BUILDING ABOUT A QUARTER MILE AWAY AS THE NEW RAIL LINE AND CARS HAVE BEGUN TO GO INTO PLACE THIS WINTER THE VERY GRANDEUR OF THE SCHEME IS BEGINNING TO PROVOKE AMUSEMENT AND SOME EMBARRASSMENT IT DOESN'T HELP THAT THE COST PER ROUTE MILE EXCEEDS SOME CONVENTIONAL LIGHT RAIL SYSTEMS BUILT BY THE GOVERNMENT NOR THAT THE CLINTON ADMINISTRATION CHOSE THIS YEAR TO CUT FEDERAL OPERATING SUBSIDIES FOR URBAN TRANSIT SYSTEMS AND THEN THERE IS THE PRESIDENT'S COUNCIL ON PHYSICAL FITNESS AND SPORTS WHICH HAS PAID FOR BROCHURES THAT CELEBRATE WALKING AS AN EXERCISE FOR ALL AGES AND THE SLOWER SURER WAY TO FITNESS THE PAMPHLET ALSO NOTES THAT WALKING DOESN'T COST ANYTHING THE CURRENT SENATE SUBWAY SYSTEM ABOUT THIRTY FIVE YEARS OLD FACES REPAIR COSTS OF ITS OWN AND SORELY NEEDS REPLACEMENT ACCORDING TO THE CAPITOL ARCHITECT'S OFFICE WHOSE SURVEYS SUGGEST THAT MORE THAN A HALF MILLION PEOPLE RIDE THE TRAINS EACH YEAR WITH NEW REQUIREMENTS TO MAKE THE CAPITOL MORE ACCESSIBLE TO THE HANDICAPPED IMPROVEMENTS WERE INEVITABLE SENATOR HARRY REID D. NEVADA WHO HAS HAD TO CARRY THE PROJECT AS CHAIRMAN OF THE LEGISLATIVE APPROPRIATIONS SUBCOMMITTEE SAYS IT'S NOT THE SENATE'S SUBWAY IT'S THE PUBLIC'S SUBWAY NONETHELESS THE EXPENDITURE IS DRIVEN BY THE FACT THAT HALF THE SENATORS TODAY OPERATE FROM THE HART OFFICE BUILDING IN NINETEEN EIGHTY FOUR WITHIN YEARS OF THE BUILDING'S OPENING AND LONG BEFORE THE RECENT DISABILITY LEGISLATION A CONSULTING FIRM CONTRACT WENT OUT TO EVALUATE THE SUBWAY AND THE SCHEDULED COMPLETION THIS SUMMER CAPS A DECADE OF PRODDING BY HART SENATORS WITH INFLUENCE ON THE RULES AND APPROPRIATIONS COMMITTEES HART SENATORS OFTEN COMPLAIN OF DELAYS IN GETTING TO THE FLOOR ON BUSY DAYS OF VOTING THE CURRENT SHUTTLE BACK AND FORTH TO THE CAPITOL TAKES ABOUT FIVE MINUTES OR MORE WHILE THIS DELAY IS NOTHING TO YOUR AVERAGE SUBWAY RIDER IT CAN SEEM AN ETERNITY FOR A SENATOR WHO HAS JUST MISSED A RIDE THE DIRKSEN BUILDING WHICH HOUSES ANOTHER THIRTY SIX OFFICE SUITES AND CURRENTLY IS SERVED BY ITS OWN RAIL LINE WILL BECOME PART OF THE NEW LOOP THE NEW ELECTRIC COMPUTER CONTROLLED SYSTEM WILL FEATURE FOUR TRAINS WITH THREE CARS EACH FOLLOWING ONE ANOTHER AT ONE MINUTE INTERVALS WITH EACH TRAIN ABLE TO SEAT TWENTY FIVE PASSENGERS TWO ALONE WOULD BE ENOUGH TO TRANSPORT ALL THE HART SENATORS IN A FEW MINUTES IN ANOTHER TWO MINUTES AIDES COULD FOLLOW IN TIME TO ADVISE THEIR MEMBERS ON HOW TO VOTE ALLOWING ONE POINT SEVEN MINUTES FOR TRAVEL TIME AT TODAY'S SPEED OF SEVENTEEN MILES AN HOUR EVERYONE COULD BE BACK TO HART BEFORE THE FIFTEEN MINUTE ROLL CALL ENDS WHAT WILL HAPPEN WHEN THE SENATE ISN'T VOTING AND THE TRAINS KEEP GOING AROUND IS LESS CLEAR BUT THE ARCHITECT'S OFFICE SAYS CARS CAN BE PULLED OUT OF SERVICE WHEN NOT NEEDED OR WHEN SENATORS CHOOSE TO WALK THE DISTANCES AREN'T LONG FROM HART TO THE CAPITOL IS ABOUT ONE THOUSAND SIX HUNDRED FIFTY SEVEN FEET THE DISTANCE FROM DIRKSEN TO THE CAPITOL IS JUST ONE THOUSAND ONE HUNDRED EIGHT FEET THE BULK OF THE PROJECT IS COVERED BY A FIFTEEN POINT EIGHT MILLION DOLLAR CONTRACT WITH TRANSPORTATION GROUP INCORPORATED A FLORIDA SUBSIDIARY OF BOMBARDIER INCORPORATED THE CANADIAN COMPANY THAT BUILDS WATER JET SKIS AND SNOWMOBILES AS WELL AS CORPORATE JETS AND TRANSIT CARS THE MONORAIL TECHNOLOGY DUBBED WEDWAY FOR WALT E. DISNEY OWES ITS NAME AND ROOTS TO EXPERIENCES AT DISNEY WORLD TRANSPORTATION GROUP WHICH DID WORK FOR DISNEY ALSO LIKENS THE SYSTEM TO ONE IT BUILT FOR THE HOUSTON INTERCONTINENTAL AIRPORT THE NARROW CAPITOL TUNNEL AND THE NEED TO MAINTAIN SERVICE WHILE INSTALLING THE NEW SYSTEM HAVE LIMITED COMPETITION AND ADDED TO COSTS BUT WHEN MEASURED AGAINST TODAY'S HIGH CAPACITY AIRPORT SYSTEMS THE COMPANY INSISTS THE SENATE SCHEME IS EXTREMELY COST EFFECTIVE MICHAEL LIEBHOLD FORTY NINE YEARS OLD WAS NAMED TO THE NEW POST OF VICE PRESIDENT TECHNOLOGY WITH THIS MEDIA AND INFORMATION CONCERN HE PREVIOUSLY WAS SENIOR SCIENTIST MEDIA ARCHITECTURES RESEARCH ADVANCED TECHNOLOGY GROUP AT APPLE COMPUTER INCORPORATED JACQUES CALVET CHAIRMAN OF P. S. A. PEUGEOT CITROEN S. A. SAYS HE IS CONFIDENT THE FRENCH AUTO GROUP WILL BE ABLE TO INCREASE ITS MARKET SHARE TO THIRTEEN PERCENT IN NINETEEN NINETY FOUR FROM JUST TWELVE POINT TWO PERCENT LAST YEAR MR. CALVET SAID THOSE PREDICTIONS WERE BASED ON HIS BELIEF THAT THE FRENCH AND U. K. MARKETS WHERE PEUGEOT CITROEN IS WELL REPRESENTED WILL PERFORM BETTER THAN THE EUROPEAN AVERAGE IN ADDITION NEW MODELS WILL HELP THE GROUP ATTRACT CONSUMER INTEREST HE SAID ACCORDING TO MR. CALVET THE WESTERN EUROPEAN CAR MARKET WILL INCREASE THREE PERCENT IN NINETEEN NINETY FOUR AFTER LAST YEAR'S DISASTROUS FIFTEEN PERCENT CRASH ALTHOUGH MANY OF EUROPE'S MAIN MARKETS WILL REMAIN STAGNANT AND GERMANY EUROPE'S LARGEST MARKET WILL FALL BETWEEN TWO PERCENT TO THREE PERCENT FRANCE WILL RISE SEVEN PERCENT AND THE U. K. BY FIVE PERCENT MR. CALVET PREDICTED HIS ESTIMATES DIFFER SIGNIFICANTLY FROM THOSE OF THE EUROPEAN AUTOMOBILE MANUFACTURERS' ASSOCIATION WHICH HAS FORECAST ONLY A ONE PERCENT TO TWO PERCENT INCREASE IN THE OVERALL EUROPEAN MARKET AND WHICH PREDICTS THAT THE U. K. WILL BE THE ONLY MARKET TO SHOW GROWTH THIS YEAR PEUGEOT CITROEN HOWEVER IS VIRTUALLY THE ONLY MAJOR CAR MAKER THAT ISN'T A MEMBER OF THE EUROPEAN ASSOCIATION MR. CALVET SAID THAT BEYOND THE GOOD FORTUNE OF HAVING ITS SALES HEAVILY WEIGHTED IN THE MARKETS WITH BRIGHTER OUTLOOKS NEW MODELS INTRODUCED BY THE GROUP WOULD PLAY A KEY ROLE IN THE ADVANCE THE RECENTLY RELEASED XANTIA WILL CONTINUE TO BE SUCCESSFUL HE PREDICTED MEANWHILE CITROEN THIS YEAR WILL BRING OUT A FIVE DOOR HATCHBACK VERSION OF ITS Z. X. MODEL IN ADDITION THE GROUP WILL BRING ITS MONOSPACE VAN ONTO THE MARKET BEFORE EITHER V. W. OR FORD CAN GET COMPETING MODELS ON SHOWROOM FLOORS MR. CALVET SAID ALTHOUGH PREDICTING A POSITIVE YEAR FOR PEUGEOT CITROEN NEXT YEAR MR. CALVET WARNED THAT THE EUROPEAN MARKET AS A WHOLE IS SHOWING ONLY THE SLIGHTEST UPWARD TILT AND THAT IT WILL BE THE END OF NINETEEN NINETY FOUR BEFORE THE INDUSTRY STARTS SEEING A MORE FUNDAMENTAL IMPROVEMENT SEPARATELY MR. CALVET ON WEDNESDAY URGED EUROPEAN POLITICIANS TO PUT INCREASED PRESSURE ON JAPANESE CAR MAKERS TO LIMIT THEIR IMPORTS INTO THE EUROPEAN MARKET BEYOND JUST CALLING FOR A FREEZE ON JAPANESE IMPORTS MR. CALVET SAID THAT THE JAPANESE OUGHT TO ACTUALLY REDUCE THEIR IMPORTS IN NINETEEN NINETY FOUR BECAUSE IN NINETEEN NINETY THREE THEY UNFAIRLY INCREASED THEIR MARKET SHARE OF THE EURPEAN MARKET DESPITE THE FIFTEEN PERCENT COLLAPSE IN THE MARKET CHRYSLER CORPORATION SAID IT IS CONSIDERING INCREASING PRODUCTION CAPACITY OF ITS PICKUP TRUCKS BECAUSE OF GROWING DEMAND FOR SEVERAL REDESIGNED MODELS UNTIL NOW CHRYSLER HAS BEEN RELYING HEAVILY ON OVERTIME TO MEET DEMAND FOR SUCH HOT SELLING MODELS AS THE DODGE RAM AND DAKOTA PICKUPS AND CHEROKEE SPORT UTILITY VEHICLES THE AUTO MAKER SAID IT IS QUOTE STILL STUDYING OPTIONS QUOTE IN THE MEANTIME CHRYSLER SAID IT SCHEDULED OVERTIME TOMORROW AND NEXT WEEK AT ITS ASSEMBLY PLANT IN DETROIT THAT MAKES THE GRAND CHEROKEE SPORT UTILITY VEHICLE SEPARATELY CHRYSLER SAID IT HAS RECEIVED FIFTY SEVEN THOUSAND ORDERS SO FAR FOR ITS NEW NEON SUBCOMPACT AUTOMOBILE IT WILL TAKE UNTIL EARLY MARCH TO FILL THE BACKLOG OF ORDERS CHRYSLER SAID CHRYSLER GENERAL MOTORS CORPORATION AND FORD MOTOR COMPANY ALL PLANNED OVERTIME THIS WEEK AND NEXT WEEK AT SEVERAL U. S. AND CANADIAN ASSEMBLY PLANTS AUTO PLANTS WILL BE CLOSED MONDAY IN OBSERVANCE OF THE MARTIN LUTHER KING HOLIDAY THE DOMESTIC AUTO MAKERS SAID THEY PLANNED TO BUILD TWO HUNDRED TWENTY FIVE THOUSAND FIVE HUNDRED SEVEN CARS AND TRUCKS THIS WEEK UP THIRTY TWO PERCENT FROM THE ONE HUNDRED SEVENTY THOUSAND SEVEN HUNDRED THIRTY THREE VEHICLES BUILT IN THE SAME WEEK A YEAR EARLIER DEFLECTING CRITICISM THAT THE MANDARIN ORIENTAL HOTEL GROUP IS LOSING TIME BY TAKING A CONSERVATIVE APPROACH TO CHINA MANAGING DIRECTOR ROBERT RILEY SAID THE LUXURY CHAIN IS KEEN TO ENTER THE MAINLAND IF CONDITIONS ARE RIGHT QUOTE WE HAVE MADE IT PLAIN WE ARE INTERESTED IN DOING HOTELS IN CHINA WHEN WE FIND OPPORTUNITIES FIT FOR SHAREHOLDERS AND CUSTOMERS QUOTE HE SAID IN AN INTERVIEW MANDARIN ORIENTAL'S NETWORK INCLUDES A MIX OF TEN HOTELS IT OWNS OR OPERATES IN HONG KONG AND SOUTHEAST ASIA AND A HOTEL IT MANAGES IN SAN FRANCISCO ANALYSTS HAVE BLAMED THE COMPANY'S LACKLUSTER EARNINGS PERFORMANCE ON THE CAUTIOUS STYLE OF HONG KONG'S JARDINE STRATEGIC HOLDINGS LIMITED WHICH OWNS FIFTY PERCENT OF THE HOTEL COMPANY MR. RILEY TERMED THE MANDARIN ORIENTAL GROUP'S STYLE A VERY DELIBERATE GROWTH STRATEGY HE SAID IT IS A STRATEGY MEANT TO ENSURE THAT EVERY NEW PROJECT'S FINANCIAL STRUCTURE WILL BRING LONG TERM VALUE WHETHER IT BE IN CHINA OR INDONESIA HE ADDED OUR RECORD STANDS FOR ITSELF WE ARE RUNNING BUSINESS IN A WAY THAT BRINGS VALUE TO ITS SHAREHOLDERS THE HOTEL COMPANY IS INVESTIGATING INVESTMENT OPPORTUNITIES IN VIETNAM AND JAPAN PARTICULARLY TOKYO THOUGH IT HASN'T MADE ANY DEALS MR. RILEY SAID THE COMPANY IS EXPECTED TO RELEASE ITS NINETEEN NINETY THREE EARNINGS IN MARCH AND MR. RILEY DECLINED TO SUPPLY PROJECTIONS FOR NINETEEN NINETY FOUR BUT HE SAID THE HONG KONG MANDARIN ORIENTAL AND THE EXCELSIOR HOTEL WOULD BE THE GROUP'S MAIN GROWTH CONTRIBUTORS BECAUSE THE HONG KONG MARKET IS CLEARLY THE STRONGEST MARKET IN ASIA HE SAID THE AVERAGE OCCUPANCY RATE AT THE MANDARIN ORIENTAL FOR THE ELEVEN MONTHS ENDED NOVEMBER NINETEEN NINETY THREE WAS SIXTY SIX PERCENT WHILE AT THE EXCELSIOR IT WAS EIGHTY EIGHT PERCENT MR. RILEY SAID HE EXPECTS ROOM RATES TO RISE IN THE TERRITORY THIS YEAR THOUGH HE DIDN'T SPECIFY HOW MUCH FOR NINETEEN NINETY THREE THE AVERAGE ROOM RATE WAS TWO HUNDRED TWELVE DOLLARS AND FIFTY CENTS AT THE MANDARIN ORIENTAL AND EIGHTY THREE DOLLARS AND FIFTY CENTS AT THE EXCELSIOR NEXT MONTH MANDARIN IS EXPECTED TO BEGIN MANAGING A NEW RESORT IN KOH SAMUI THAILAND IT ALREADY MANAGES THE PHUKET YACHT CLUB IN THAT COUNTRY THE COMPANY HAS ALSO SECURED THE MANAGEMENT CONTRACT FOR A HOTEL IN SURABAYA INDONESIA DUE TO OPEN IN THE SECOND QUARTER OF NINETEEN NINETY FIVE IN WHICH IT WILL HAVE A TWENTY FIVE PERCENT EQUITY STAKE THE COMPANY HAS SECURED LAND FOR A SIX HUNDRED THIRTY ROOM HOTEL IN KUALA LUMPUR BUT MR. RILEY SAID IT STILL ISN'T CLEAR WHEN THE GROUNDBREAKING FOR THE PROJECT WILL OCCUR HEALTH MAINTENANCE ORGANIZATIONS RECEIVED GENERALLY HIGH MARKS IN A NEW STUDY EVALUATING THE QUALITY OF PRENATAL CARE AT HEALTH PLANS THE REPORT BASED ON MORE THAN TWENTY FOUR THOUSAND BIRTHS COVERED BY SIX LARGE H. M. O.S AROUND THE U. S. FOUND FOR INSTANCE THAT EIGHTY SEVEN PERCENT OF EXPECTANT MOTHERS IN THE PARTICIPATING PLANS HAD THEIR FIRST VISIT WITH A DOCTOR IN THEIR FIRST TRIMESTER AN IMPORTANT STEP IN PREVENTING DELIVERY OF LOW BIRTH WEIGHT BABIES THE NATIONAL RATE IS SEVENTY SIX PERCENT BUT RESEARCHERS ALSO FOUND SIGNIFICANT VARIATION IN THE OVERALL PERFORMANCE OF THE PARTICIPATING PLANS THE STUDY IS THE LATEST EXAMPLE OF A BURGEONING EFFORT TO DEVELOP VALID TOOLS FOR COMPARING HEALTH PLANS BASED ON THE QUALITY OF THEIR SERVICES KAISER PERMANENTE THE BIG OAKLAND CALIFORNIA H. M. O. UNITED HEALTHCARE CORPORATION MINNEAPOLIS AND U. S. HEALTHCARE INCORPORATED BLUE BELL PENNSYLVANIA FOR INSTANCE EACH RECENTLY RELEASED REPORT CARDS ON ITS PERFORMANCE ACROSS A VARIETY OF MEASURES THE EFFORTS REFLECT GROWING DEMANDS FROM EMPLOYERS FOR COMPARATIVE DATA TO GUIDE THEIR HEALTH BENEFITS PURCHASING DECISIONS THE CLINTON ADMINISTRATION'S HEALTH REFORM PLAN AS WELL AS SEVERAL COMPETING PROPOSALS INTRODUCED IN CONGRESS CALL FOR SUCH DATA TO HELP CONSUMERS CHOOSE PLANS QUOTE WITH INCREASING COMPETITION AMONG HEALTH PLANS PEOPLE ARE REALLY FOCUSED ON BOTTOM LINE PREMIUM COSTS QUOTE SAID ELIZABETH A. MCGLYNN HEALTH POLICY ANALYST AT RAND CORPORATION A SANTA MONICA CALIFORNIA THINK TANK AND AN AUTHOR OF THE CURRENT STUDY IF YOU DON'T HAVE SYSTEMATIC COUNTERVAILING INFORMATION ON QUALITY YOU MIGHT DRIVE THE WRONG PROVIDERS OUT OF THE MARKET BUT MOST REPORTING EFFORTS ARE IN THEIR INFANCY AND MANY QUESTIONS REMAIN OVER WHAT DATA AND MEASURES TRULY REFLECT QUALITY THE CURRENT STUDY LOOKED AT HOW WELL H. M. O.S PERFORMED IN PROVIDING ROUTINE SCREENING TESTS AND OTHER MEASURES OF THE PROCESS OF PRENATAL CARE SUCH AS WHETHER AN EXPECTANT MOTHER'S BLOOD PRESSURE WAS TAKEN ON EACH VISIT DONE BY RAND AND PARTLY FUNDED BY A GROUP OF H. M. O.S CALLED THE H. M. O. QUALITY OF CARE CONSORTIUM THE STUDY APPEARS IN THE JANUARY ISSUE OF ARCHIVES OF FAMILY MEDICINE A JOURNAL PUBLISHED BY THE AMERICAN MEDICAL ASSOCIATION WE FOUND QUITE GOOD QUALITY OF CARE IN THESE H. M. O.S BUT THERE WAS VARIATION DOCTOR MCGLYNN SAID AGGREGATE COMPLIANCE WITH MOST OF THE CRITERIA WAS OVER SEVENTY FIVE PERCENT IN THE SIX PLANS BUT THERE WAS WIDE VARIATION IN SOME INDIVIDUAL CASES FOR INSTANCE ONE PLAN SCREENED ONLY SEVEN PERCENT OF PATIENTS FOR GONORRHEA ON THE FIRST VISIT WHILE ANOTHER TESTED FOR THE DISEASE ON NINETY SIX PERCENT H. M. O.S WEREN'T COMPARED WITH TRADITIONAL FEE FOR SERVICE CARE IN THE STUDY BUT RESEARCHERS SAID FIVE PERCENT OF BIRTHS IN THE STUDY WERE CONSIDERED LOW BIRTH WEIGHT COMPARED WITH A NATIONAL AVERAGE OF SEVEN PERCENT AND JUST ONE INFANT WAS BORN AT A VERY LOW BIRTH WEIGHT AT THE SIX H. M. O.S WELL UNDER A NATIONAL AVERAGE OF ONE PERCENT THE STUDY SAID THE H. M. O.S ALSO BETTERED THE NATIONAL AVERAGE ON BLOOD PRESSURE TESTING AND MATCHED NATIONAL RATES FOR TESTING FOR ANEMIA MANY H. M. O.S OFFER COMPREHENSIVE PRENATAL PROGRAMS IN PART TO ATTRACT YOUNG ADULT MEMBERS WHO VALUE SUCH SERVICES AND IN PART BECAUSE THE BENEFITS BOTH IN QUALITY OF LIFE AND IN COST SAVINGS ARE WELL DOCUMENTED LEAD AUTHOR OF THE STUDY IS PAUL J. MURATA A DOCTOR NOW IN PRIVATE PRACTICE IN TORRANCE CALIFORNIA CONNER PERIPHERALS INCORPORATED SAID ITS NEW SOFTWARE UNIT HAS AGREED TO ACQUIRE QUEST DEVELOPMENT CORPORATION A CLOSELY HELD SOFTWARE CONCERN IN SAN LUIS OBISPO CALIFORNIA CONNER A MAKER OF COMPUTER DISK DRIVES CREATED THE UNIT CALLED ARCADA SOFTWARE INCORPORATED IN NOVEMBER AND TRANSFERRED ITS SOFTWARE ASSETS INTO THE UNIT LATE LAST YEAR UNDER THE AGREEMENT QUEST SHAREHOLDERS WILL RECEIVE CASH AND ARCADA SHARES IN EXCHANGE FOR ALL QUEST STOCK CONNER WHICH IS BASED IN SAN JOSE CALIFORNIA WOULDN'T PLACE A VALUE ON THE ACQUISITION CONNER INTENDS TO USE ARCADA AS AN QUOTE ACQUISITION VEHICLE QUOTE TO GAIN MUSCLE IN THE MARKET FOR SOFTWARE THAT MANAGES MASS STORAGE OF COMPUTER DATA SAID WILLIAM J. SCHROEDER ARCADA'S CHIEF EXECUTIVE CONNER TRADITIONALLY A HARDWARE COMPANY SPIED WHAT IS AN OPENING MARKET OPPORTUNITY IN STORAGE MANAGEMENT SOFTWARE HE SAID ADDING THAT THIS IS THE FIRST CLEAR STEP THAT SHOWS WE'RE SERIOUS ABOUT IT WESTERN GERMAN WHOLESALE PRICES WERE UNCHANGED IN DECEMBER AND WERE UP ZERO POINT ONE PERCENT FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE SAID FOR THE YEAR WHOLESALE PRICES DECLINED AN AVERAGE OF ONE POINT ONE PERCENT IT SAID THE STATISTICS OFFICE SAID DECEMBER WAS THE FIRST MONTH SINCE MID NINETEEN NINETY TWO IN WHICH WHOLESALE PRICES DIDN'T DECLINE ON A YEAR ON YEAR BASIS THE HUBBLE SPACE TELESCOPE'S DAYS AS A NATIONAL LAUGHINGSTOCK ARE OVER THE FIRST PICTURES TAKEN BY THE ONE POINT SIX BILLION DOLLARS TELESCOPE SINCE SPACE WALKING ASTRONAUTS REPAIRED IT LAST MONTH OFFER PROOF THE INSTRUMENT IS AS GOOD AS NEW PERHAPS EVEN BETTER SCIENTISTS FROM THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION SAID YESTERDAY THE TELESCOPE HAS BEEN THE BUTT OF JOKES SINCE IT WAS LAUNCHED IN NINETEEN NINETY WITH A MISSHAPEN MIRROR THAT MADE IT NEARSIGHTED QUOTE THE HUBBLE IS FIXED QUOTE DECLARED ED WEILER THE HUBBLE PROGRAM'S TOP SCIENTIST IT'S FIXED BEYOND OUR WILDEST EXPECTATIONS AND IT WAS DONE ON TIME AND WITHIN BUDGET THE TELESCOPE'S VISION IS NOW SO GOOD IT COULD READ A NEWSPAPER'S NAMEPLATE FROM TWELVE MILES AWAY AND DETECT A GLOW NO STRONGER THAN A FIREFLY'S FROM A DISTANCE OF EIGHT THOUSAND FIVE HUNDRED MILES ROUGHLY WASHINGTON TO TOKYO ACCORDING TO JAMES CROCKER OF THE SPACE TELESCOPE SCIENCE INSTITUTE IN BALTIMORE ASTRONAUTS ON THE SPACE SHUTTLE ENDEAVOUR SUCCESSFULLY INSTALLED PRESCRIPTION LENSES ON THE ORBITING TELESCOPE IN DECEMBER BUT NO ONE KNEW WHETHER THEY WOULD WORK UNTIL GROUND BASED SCIENTISTS COULD TURN ON AND FINE TUNE THE INSTRUMENT'S CAMERAS OVER SEVERAL WEEKS IN THE END EVEN LESS FINE TUNING THAN EXPECTED WAS NEEDED AND NASA RELEASED THE HUBBLE'S FIRST PICTURES WEEKS AHEAD OF SCHEDULE A BATCH OF COLOR AND BLACK AND WHITE PICTURES CLEARLY SHOW THE BEFORE AND AFTER EFFECTS FUZZY HALOS AROUND A STAR IN AN IMAGE TAKEN BEFORE THE REPAIR MISSION ARE GONE ALLOWING ASTRONOMERS NOT ONLY TO SEE A CLEARER POINT OF LIGHT BUT ALSO TO MEASURE THE STAR'S ENERGY A VIEW OF A SPIRAL GALAXY TENS OF MILLIONS OF LIGHT YEARS AWAY IS NOT ONLY CLEARER BUT REVEALS PREVIOUSLY UNSEEN STARS THE FIRST IMAGES WERE TAKEN ONLY TO TEST THE INSTRUMENT OVER THE NEXT FIFTEEN MONTHS NASA SCIENTISTS AND ASTRONOMERS AROUND THE WORLD WILL BEGIN MAKING SCIENTIFIC OBSERVATIONS THAT WILL ALLOW THEM TO SEE DEEPER INTO THE UNIVERSE THAN EVER BEFORE HUBBLE IS NOW EXPECTED TO LIVE UP TO ITS ORIGINAL GOALS TO HELP ASTRONOMERS FIND THE EDGE OF THE UNIVERSE MEASURE ITS SIZE REFINE ESTIMATES OF ITS AGE AND GAIN FURTHER EVIDENCE OF BLACK HOLES DESPITE THE TOTAL LOSS OF NASA'S MARS OBSERVER SPACE PROBE LAST SUMMER THE SUCCESS OF THE HUBBLE REPAIR MISSION IS EXPECTED TO HELP THE SPACE AGENCY WEATHER EFFORTS IN CONGRESS TO CUT ITS BUDGET APACHE CORPORATION SAID IT DISCOVERED OIL IN A NEW FIELD NEAR ELY NEVADA THE OIL AND GAS COMPANY WHICH OWNS A THIRTY EIGHT POINT FOUR PERCENT WORKING INTEREST IN THE GRANT CANYON TWENTY TWO TO TWENTY ONE WELL SAID THE WELL TESTED AT FOUR THOUSAND FIVE HUNDRED BARRELS OF OIL A DAY FROM DEPTHS OF FOUR THOUSAND THIRTY FIVE FEET TO FOUR THOUSAND SIXTY FIVE FEET AND IS PRODUCING AT A RATE OF TWO THOUSAND FIVE HUNDRED BARRELS A DAY APACHE OPERATOR OF THIS WELL SHARES OWNERSHIP WITH NUMEROUS MINORITY OWNERS FRANKLIN RESOURCES INCORPORATED AGREED TO PAY ABOUT NINE MILLION DOLLARS IN STOCK AND CASH TO A DEPARTING EXECUTIVE WHO JOINED THE MUTUAL FUND COMPANY WHEN IT ACQUIRED TEMPLETON GALBRAITH AND HANSBERGER LIMITED IN NINETEEN NINETY TWO FRANKLIN RESOURCES AGREED TO THE SEVERANCE PACKAGE FOR THOMAS HANSBERGER WHO RESIGNED IN OCTOBER AS A FRANKLIN RESOURCES DIRECTOR AND AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS TEMPLETON WORLDWIDE INCORPORATED UNIT. ACCORDING TO A FRANKLIN RESOURCES PROXY STATEMENT DATED DECEMBER THIRTIETH THE PACKAGE INCLUDES EIGHT POINT TWO NINE MILLION DOLLARS IN CASH AND SHARES VALUED AT FIVE HUNDRED EIGHTY ONE THOUSAND DOLLARS MR. HANSBERGER WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TEMPLETON BEFORE ITS ACQUISITION BY FRANKLIN RESOURCES LAURENCE W. CHENG ROBERT R. DOUGLASS AND ZAID PEDERSEN WERE ELECTED DIRECTORS OF THIS INSURANCE HOLDING COMPANY INCREASING THE SIZE OF THE BOARD TO THIRTEEN MR. CHENG FORTY SIX YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ZURICH INTERNATIONAL BERMUDA LIMITED AND CHIEF OPERATING OFFICER OF CENTRE REINSURANCE BERMUDA LIMITED MR. DOUGLASS SIXTY TWO IS AN ATTORNEY AT THE LAW FIRM OF MILBANK TWEED HADLEY AND MCCLOY AND CHAIRMAN ELECT OF THE BOARD AT CEDEL IN LUXEMBOURG MR. PEDERSEN IS EXECUTIVE VICE PRESIDENT AND CONTROLLER OF TRYGG HANSA SPP IN STOCKHOLM STANDARD AND POOR'S CORPORATION SAID BAROID CORPORATION WILL BE REMOVED FROM ITS S. AND P. MIDCAP FOUR HUNDRED INDEX AFTER THE CLOSE OF TRADING WEDNESDAY BECAUSE OF DRESSER INDUSTRIES INCORPORATED'S PLANNED ACQUISITION OF THE DRILLING SERVICES AND EQUIPMENT COMPANY PARKER AND PARSLEY PETROLEUM COMPANY A MIDLAND TEXAS OIL AND GAS COMPANY WILL REPLACE BAROID GENTRA INCORPORATED SAID IT REPAID TO TRILON FINANCIAL CORPORATION A LOAN OF ONE HUNDRED MILLION CANADIAN DOLLARS SEVENTY FIVE POINT SIX MILLION U. S. DOLLARS GENTRA FORMERLY NAMED ROYAL TRUSTCO LIMITED SAID THE LOAN WAS RELATED TO THE ACQUISITION OF ROYAL TRUSTCO ASSETS BY ROYAL BANK OF CANADA LAST YEAR TRILON IS A FINANCIAL SERVICES HOLDING COMPANY FORD MOTOR COMPANY SAID ITS EXPORTS OF NORTH AMERICAN BUILT VEHICLES REACHED A RECORD LAST YEAR RISING FORTY TWO PERCENT FROM THE PREVIOUS YEAR FORD SAID IT SHIPPED SEVENTY THOUSAND NINE HUNDRED NINETY NINE CARS AND LIGHT TRUCKS TO EXPORT MARKETS UP FROM FIFTY THOUSAND VEHICLES IN NINETEEN NINETY TWO THE TOP FIVE EXPORTED MODELS WERE THE FORD PROBE TEMPO EXPLORER SPORT UTILITY TAURUS AND RANGER PICKUP FORD'S LARGEST EXPORT MARKET IS LATIN AMERICA WHICH ACCOUNTED FOR THIRTY PERCENT OR TWENTY ONE THOUSAND THIRTY EIGHT EXPORTED VEHICLES RESEARCHERS SAY THEY HAVE DISCOVERED A SECRET TO THE TUBERCULOSIS BACTERIA'S ALARMING ABILITY TO DEVELOP RESISTANCE TO ONE OF THE MOST WIDELY USED ANTI T. B. DRUGS ISONIAZID THE DISCOVERY CREATES A POWERFUL TOOL IN THE SEARCH FOR NEW DRUGS TO TREAT DRUG RESISTANT TUBERCULOSIS WHICH AFFECTS A QUARTER OF T. B. CASES IN SOME CITIES SAID WILLIAM R. JACOBS JUNIOR WHO HEADED THE RESEARCH TEAM THAT MADE THE DISCOVERY PHARMACEUTICAL COMPANIES ALREADY HAVE EXPRESSED INTEREST IN GAINING ACCESS TO THE RESEARCHERS' WORK SAID DOCTOR JACOBS A HOWARD HUGHES MEDICAL INSTITUTE RESEARCHER AT THE ALBERT EINSTEIN COLLEGE OF MEDICINE IN THE BRONX THE DRUG ISONIAZID HAS BEEN USED SINCE NINETEEN FIFTY TWO WHEN IT WAS HAILED AS A MILESTONE IN THE FIGHT AGAINST T. B. BECAUSE IT WASN'T AS TOXIC AND WAS MUCH MORE EFFECTIVE THAN OTHER DRUGS DOCTOR JACOBS SAID WITHIN A FEW YEARS HOWEVER T. B. BACTERIA BEGAN TO SHOW RESISTANCE TO THE DRUG AND ADDITIONAL DRUGS WERE ADDED TO THE STANDARD THERAPY WHICH PROVED EFFECTIVE FOR DECADES BUT NEW STRAINS HAVE EMERGED THAT DEFY THE STANDARD THERAPY MAKING TREATMENT FAR MORE COSTLY AND DIFFICULT THE STANDARD DRUG THERAPY COSTS ABOUT THREE HUNDRED DOLLARS BUT THE COST OF DRUGS TO TREAT RESISTANT STRAINS IS TEN TIMES HIGHER DOCTOR JACOBS NOTED BUT THE BRONX RESEARCHERS THINK THEY HAVE FOUND THE GENE MUTATION THAT ENABLES THE T. B. BACTERIA TO RESIST THE KILLING ACTION OF ISONIAZID IN A PAPER PUBLISHED IN TODAY'S ISSUE OF SCIENCE THE BRONX RESEARCHERS AND COLLABORATORS IN NEW ZEALAND REPORT THE IDENTIFICATION OF THE GENE INHA WHICH PRODUCES AN ENZYME THAT THEY BELIEVE IS INVOLVED IN THE BACTERIA'S ABILITY TO BUILD CELL WALLS AND MULTIPLY THE RESEARCHERS HYPOTHESIZE ISONIAZID BINDS TO THE ENZYME AND PREVENTS THE BACTERIA FROM MULTIPLYING THE MUTATED GENE HOWEVER MAKES A SLIGHTLY ALTERED ENZYME THAT DOESN'T ALLOW THE DRUG TO BIND THEY THEORIZED THE RESEARCHERS INITIALLY FOUND THE GENE MUTATIONS IN TWO RELATED BACTERIA CALLED M. SMEGMATIS AND M. BOVIS AND RECENTLY IN THE T. B. BACTERIA ITSELF T. B. RESEARCHERS OFTEN WORK WITH M. SMEGMATIS BECAUSE IT DOESN'T CAUSE ANY DISEASE BUT IS VERY SIMILAR TO THE T. B. BACTERIA AND GROWS MUCH FASTER M. BOVIS IS ALSO GENETICALLY SIMILAR TO THE T. B. GENE AND CAUSES TUBERCULOSIS IN CATTLE WHICH CAN BE TRANSMITTED TO HUMANS THROUGH MILK OR MEAT CONSUMPTION THE RESEARCHERS TRANSFERRED COPIES OF THE MUTANT INHA GENE INTO NORMAL STRAINS OF M. SMEGMATIS AND M. BOVIS AND FOUND THE ALTERED BACTERIA WERE RESISTANT TO ISONIAZID PURSUING A SECOND HYPOTHESIS THE RESEARCHERS ALSO INSERTED MULTIPLE COPIES OF THE NORMAL INHA GENE INTO NORMAL STRAINS OF M. SMEGMATIS AND FOUND THE BACTERIA BECAME RESISTANT TO ISONIAZID BECAUSE THERE'S SO MUCH OF THE ENZYME BEING PRODUCED THE DRUG MAY BIND TO SOME OF IT BUT MISS ENOUGH TO ALLOW THE BACTERIA TO REPLICATE AND CAUSE DISEASE DOCTOR JACOBS THEORIZED THE RESEARCHERS ARE CONTINUING RESEARCH TO UNDERSTAND EXACTLY HOW THE DRUG RESISTANCE PROCESS WORKS IN THE T. B. BACTERIA BUT THE DISCOVERY OF THE GENE AND THE MUTATION ALLOWS WORK TO BEGIN RIGHT AWAY ON FINDING DRUGS THAT WILL WORK AGAINST THE ENZYME DOCTOR JACOBS SAID NEGOTIATIONS ARE ALREADY UNDER WAY TO LICENSE THE GENETIC INFORMATION HE SAID BUT HE DECLINED TO IDENTIFY THE INTERESTED COMPANY DIEBOLD INCORPORATED SAID IT BOUGHT FIFTY PERCENT OF A VENEZUELAN CONCERN OLTP A. T. M. SYSTEMS C. A. OF CARACAS TO DISTRIBUTE AND SERVICE DIEBOLD'S AUTOMATED TELLER MACHINES AND ELECTRONIC SECURITY SYSTEMS IN VENEZUELA TERMS WEREN'T DISCLOSED DIEBOLD HAS MORE THAN FORTY PERCENT OF THE TWO THOUSAND SEVEN HUNDRED A. T. M.S IN VENEZUELA THROUGH INTERBOLD ITS A. T. M. JOINT VENTURE WITH INTERNATIONAL BUSINESS MACHINES CORPORATION EXXON CORPORATION SAID IT HAS BRITISH GOVERNMENT APPROVAL FOR A TWO HUNDRED SIXTY MILLION DOLLAR DEVELOPMENT OF NATURAL GAS RESERVES IN TWO FIELDS IN THE SOLE PIT AREA OF THE SOUTHERN NORTH SEA EXXON AND SHELL OIL COMPANY A UNIT OF ROYAL DUTCH SLASH SHELL GROUP EACH OWN A FIFTY PERCENT INTEREST IN THE PROJECT EXXON SAID INITIAL PRODUCTION FROM THE PROJECT WILL BEGIN IN OCTOBER NINETEEN NINETY FOUR MOTOROLA INCORPORATED CITING GROWING SALES ACROSS ITS MAJOR PRODUCT LINES DUE TO INCREASED INTERNATIONAL INVESTMENT AS THE ECONOMIES EXPAND REPORTED AN EIGHTY EIGHT PERCENT INCREASE IN FOURTH QUARTER NET INCOME PROFIT WAS THREE HUNDRED FORTY MILLION DOLLARS OR ONE DOLLAR AND FIFTEEN CENTS A SHARE COMPARED WITH ONE HUNDRED EIGHTY ONE MILLION DOLLARS OR SIXTY FOUR CENTS A SHARE A YEAR EARLIER THE EARNINGS WERE AT THE HIGH END OF FINANCIAL ANALYSTS' EXPECTATIONS WHICH RANGED FROM NINETY THREE CENTS TO ONE DOLLAR AND FIFTEEN CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INCORPORATED MOTOROLA ATTRIBUTED THE RESULTS TO A THIRTY FIVE PERCENT GROWTH IN TOTAL SALES FOR THE QUARTER TO FOUR POINT NINE NINE BILLION DOLLARS FROM THREE POINT SEVEN ONE BILLION DOLLARS A YEAR EARLIER SEMICONDUCTOR SALES FOR NINETEEN NINETY THREE ROSE TWENTY EIGHT PERCENT TO FIVE POINT SEVEN OH BILLION DOLLARS FROM FOUR POINT FOUR EIGHT BILLION DOLLARS WITH STRONG GROWTH IN THE ASIA PACIFIC REGION SALES IN ITS GENERAL SYSTEMS SECTOR WHICH INCLUDES CELLULAR PHONES GREW FORTY THREE PERCENT TO FIVE POINT TWO FOUR BILLION DOLLARS FROM THREE POINT SIX SIX BILLION DOLLARS SALES IN MOTOROLA'S COMMUNICATIONS SECTOR WHICH INCLUDES SUCH PRODUCTS AS MOBILE RADIO EQUIPMENT AND PAGERS GREW TWENTY FOUR PERCENT TO FOUR POINT EIGHT THREE BILLION DOLLARS IN NINETEEN NINETY THREE FROM THREE POINT NINE ONE BILLION DOLLARS A YEAR EARLIER SALES IN ITS GOVERNMENT AND SYSTEMS TECHNOLOGY GROUP GREW THIRTY TWO PERCENT TO EIGHT HUNDRED FIFTY EIGHT MILLION DOLLARS FROM SIX HUNDRED FIFTY MILLION DOLLARS IN A STATEMENT GARY TOOKER MOTOROLA'S CHIEF EXECUTIVE OFFICER SAID THE COMPANY EXPECTS STEADY GROWTH IN NORTH AMERICA AS WELL AS GROWTH IN NEW MARKETS SUCH AS CHINA AND IN EUROPE AND JAPAN REPUBLIC NEW YORK CORPORATION RECEIVED APPROVAL FROM THE FEDERAL RESERVE SYSTEM'S BOARD OF GOVERNORS TO UNDERWRITE AND TRADE IN EQUITY AND DEBT SECURITIES THROUGH ITS REPUBLIC NEW YORK SECURITIES CORPORATION SUBSIDIARY THE UNIT WHICH BEGAN OPERATIONS IN NOVEMBER NINETEEN NINETY TWO IS A BROKER DEALER REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION REPUBLIC NEW YORK IS THE HOLDING COMPANY OF REPUBLIC NATIONAL BANK OF NEW YORK AND REPUBLIC BANK FOR SAVINGS THE SECURITIES AND EXCHANGE COMMISSION IS EXAMINING PERSONAL TRADING RECORDS OF FIDELITY INVESTMENTS' PORTFOLIO MANAGERS TO DETERMINE WHETHER THEY PROFITED FROM TRADING IN ADVANCE OF BIG MUTUAL FUND TRANSACTIONS ACCORDING TO PEOPLE FAMILIAR WITH THE S. E. C.'S INQUIRIES THE COMMISSION'S INTEREST HAS BEEN SPURRED BY FIDELITY'S RECENT STATEMENTS THAT IT TIGHTENED ITS TRADING RULES IN NOVEMBER AND HAS TAKEN DISCIPLINARY ACTION AGAINST SOME EMPLOYEES IN ADDITION FORMER FIDELITY EMPLOYEES SAY THREE PORTFOLIO MANAGERS CAME UNDER SCRUTINY INTERNALLY IN LATE NINETEEN NINETY THREE FOR AGGRESSIVE TRADING IN THEIR PERSONAL ACCOUNTS THAT RAISED ETHICAL ISSUES FIDELITY DECLINED TO COMMENT ON WHETHER THE S. E. C. HAD MADE ANY INQUIRIES BUT IT SAID IT WOULD COOPERATE FULLY WITH ANY INQUIRY FROM THE AGENCY PEOPLE WITH KNOWLEDGE OF THE S. E. C.'S INQUIRIES SAY THE COMMISSION WANTS TO DETERMINE WHETHER THESE OR ANY OTHER EMPLOYEES PROFITED BY QUOTE FRONT RUNNING QUOTE BUYING SHARES IN ADVANCE OF BIG FUND ORDERS THEN SELLING THEM AFTER THE FUNDS' BUYING LIFTS THE SHARE PRICE THE S. E. C. INVESTIGATION WAS FIRST REPORTED BY THE WASHINGTON POST IN THE PAST FEW DAYS THE S. E. C. HAS REQUESTED TRADING RECORDS FROM THE BIG BOSTON BASED MUTUAL FUND CONCERN WHICH HAS MORE THAN TWO HUNDRED SIXTY BILLION DOLLARS UNDER MANAGEMENT S. E. C. RULES REQUIRE THAT PORTFOLIO MANAGERS REPORT ALL PERSONAL SECURITIES TRANSACTIONS TO THEIR EMPLOYERS QUARTERLY AND FIDELITY DICTATES SUCH REPORTING MONTHLY THE COMMISSION'S INQUIRIES OF FIDELITY ARE PRELIMINARY AND ARE PART OF A RISING CONCERN ABOUT FUND MANAGERS' PERSONAL TRADING LAST WEEK INVESCO FUNDS GROUP FIRED STAR MANAGER JOHN KAWESKE FOR HIS ALLEGED FAILURE TO TELL HIS EMPLOYERS ABOUT HIS TRADING FIDELITY HAS NO RULE AGAINST ITS PORTFOLIO MANAGERS HOLDING THE SAME STOCKS OWNED BY THE FUNDS THEY MANAGE BUT ITS ETHICS CODE FORBIDS PERSONAL BUYING THAT TAKES PLACE WITH KNOWLEDGE THAT A FIDELITY FUND IS ABOUT TO BUY ACCORDING TO FIDELITY'S HOUSE RULES FUND MANAGERS MAY BUY A STOCK PURCHASED BY A FIDELITY FUND FIVE DAYS AFTER THE FUND BUYS SOME FIDELITY INSIDERS SAY THAT THE FIRM HAS BECOME CONCERNED ABOUT THE PERSONAL TRADING OF SOME YOUNGER FUND MANAGERS THEY SAY THE PERSONAL TRADING UNDER QUESTION DIDN'T APPEAR TO OVERTLY VIOLATE FIDELITY'S CODE OF ETHICS BUT MAY HAVE VIOLATED ITS SPIRIT SUCH HOUSE RULES ARE DESIGNED NOT JUST TO MAINTAIN COMPLIANCE WITH SECURITIES LAWS BUT TO ENSURE THAT EMPLOYEES DON'T TAKE ADVANTAGE OF THEIR POSITIONS AND THAT FUND SHAREHOLDERS AREN'T HARMED FINANCIALLY BY ANY PERSONAL DEALINGS BY MUTUAL FUND EMPLOYEES FORMER FIDELITY EMPLOYEES SAY PERSONAL STOCK TRADING BY SOME FIDELITY FUND MANAGERS IS CONSIDERABLE AND HAS GROWN DURING THE BULL MARKET SOMETIMES TOTALING HUNDREDS OF TRANSACTIONS A YEAR THE SIZE AND COMPLEXITY OF THESE TRADES HAS ALSO GROWN ACCORDING TO RECENT FIDELITY DEPARTURES FIDELITY IS RESPONDING TO THE INCREASINGLY ACTIVE TRADING OF SOME OF THE YOUNG TURKS OVER THERE SAID ONE EX FIDELITY FUND MANAGER IN BOSTON THERE IS WAY MORE ACTION OVER THERE NOW THAN THERE WAS TEN YEARS AGO FIDELITY IN THE PAST HAS HAD SERIOUS PROBLEMS WITH A FUND MANAGER'S PERSONAL DEALINGS IN JULY NINETEEN NINETY THREE THE U. S. SECOND CIRCUIT COURT OF APPEALS UPHELD THE CONVICTION OF PATRICIA OSTRANDER A FORMER FIDELITY INVESTMENTS FUND MANAGER FOR ACCEPTING AN ILLEGAL GRATUITY FROM MICHAEL MILKEN IN RETURN FOR STEERING BUSINESS TO DREXEL BURNHAM LAMBERT INCORPORATED ROBERT MCGOUGH CONTRIBUTED TO THIS ARTICLE HERO TODAY GOAT TOMORROW THAT'S A FAMILIAR PATTERN IN THE MUTUAL FUND INDUSTRY A FUND CLIMBS TO THE TOP OF THE FIVE YEAR OR TEN YEAR PERFORMANCE CHARTS PROMPTING A DELUGE OF MONEY FROM NEW INVESTORS THE FUND'S INVESTMENT RETURNS THEN SLIDE INTO MEDIOCRITY OR WORSE CONSIDER THE FORTY FOUR WALL STREET FUND WHICH WAS MERGED OUT OF EXISTENCE LAST YEAR IT SOARED THREE HUNDRED NINETY TWO POINT ONE PERCENT IN THE NINETEEN SEVENTIES MAKING IT THE DECADE'S THIRD BEST MUTUAL FUND PERFORMER ACCORDING TO LIPPER ANALYTICAL SERVICES BUT IN THE NINETEEN EIGHTIES IT PLUNGED TO THE BOTTOM OF THE MUTUAL FUND RANKINGS WITH A LOSS OF SEVENTY THREE POINT ONE PERCENT EVEN IF A TOP RANKED FUND CONTINUES TO PERFORM WELL IT MAY NOT BE THE RIGHT INVESTMENT FOR YOU TO AVOID OWNING THE WRONG FUND HERE ARE TEN QUESTIONS TO ASK BEFORE YOU BUY A FUND WITH A STRONG TRACK RECORD QUOTE YOU CAN BUY THE BEST PERFORMING MONEY MARKET FUND OR THE BEST PERFORMING BOND FUND AND IT ISN'T GOING TO DO YOU ANY GOOD IF YOU NEED GROWTH QUOTE SAYS KURT BROUWER PRESIDENT OF BROUWER AND JANACHOWSKI A SAN FRANCISCO INVESTMENT ADVISER CONVERSELY IF YOU GET SEDUCED INTO A STOCK FUND THAT SUDDENLY DROPS TWENTY PERCENT AND YOU CAN'T STAND ANY LOSS OF PRINCIPAL YOU'VE OBVIOUSLY MADE A BIG MISTAKE BEFORE BUYING A TOP PERFORMING STOCK FUND LOOK AT HOW IT PERFORMED IN PERIODS WHEN STOCK PRICES FELL DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER SUGGESTS CHECKING THE FUND'S PERFORMANCE IN THE FOURTH QUARTER OF NINETEEN EIGHTY SEVEN AND THE THIRD QUARTER OF NINETEEN NINETY THAT WAY HE SAYS YOU KNOW WHAT THE WORST CASE SCENARIO IS IF THE LOSS THAT'S BEEN DEMONSTRATED IS MORE THAN YOU CAN TAKE YOU SHOULD MOVE ON AND LOOK AT OTHER OFFERINGS FUND ANALYSTS SAY MOST STOCK FUND INVESTORS SHOULD OWN A DIVERSIFIED PORTFOLIO THAT INCLUDES LARGE COMPANY STOCK FUNDS SMALL COMPANY STOCK FUNDS AND FOREIGN FUNDS TO ENSURE YOU DON'T HAVE TOO MUCH MONEY RIDING ON ONE SECTOR OF THE MARKET YOU MAY WANT TO IGNORE A WELL RUN FUND IF YOU OWN ANOTHER TOP PERFORMING FUND WITH A SIMILAR INVESTMENT STYLE A LOT OF PEOPLE HAVE THIS ILLUSION OF DIVERSIFICATION SAYS MR. PHILLIPS BUT ACTUALLY THEY OWN FIVE STOCK FUNDS THAT HAVE SHADINGS OF THE SAME INVESTMENT STYLE IT'S IMPORTANT TO COMPARE APPLES WITH APPLES AND ORANGES WITH ORANGES FOR INSTANCE PUTNAM HEALTH SCIENCES TRUST RETURNED ONE HUNDRED EIGHTEEN POINT TWO PERCENT OVER THE FIVE YEARS ENDED NINETEEN NINETY THREE EASILY AHEAD OF THE NINETY EIGHT POINT ONE PERCENT AVERAGE GAIN FOR DIVERSIFIED U. S. STOCK MUTUAL FUNDS BUT IS THE PUTNAM FUND A GOOD CHOICE NOT IF YOU COMPARE ITS RECORD WITH THAT OF OTHER HEALTH CARE FUNDS THE PUTNAM FUND HAS HAD THE POOREST PERFORMANCE OF THE EIGHT HEALTH CARE FUNDS THAT WERE AROUND FOR THE PAST FIVE YEARS M. I. M. STOCK APPRECIATION FUND SURGED ONE HUNDRED FORTY SEVEN POINT EIGHT PERCENT OVER THE PAST SIX CALENDAR YEARS EASILY OUTPACING THE ONE HUNDRED TWENTY NINE POINT SIX PERCENT RETURN FOR THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX BUT THE CORNERSTONE OF M. I. M.'S RECORD WAS AN ASTOUNDING SEVENTY SEVEN PERCENT GAIN IN NINETEEN NINETY ONE QUOTE IT'S BEEN A FINE RETURN IF YOU WERE IN FOR THE WHOLE RIDE QUOTE SAYS MORNINGSTAR'S MR. PHILLIPS BUT IF YOU MISSED CALENDAR NINETEEN NINETY ONE YOU GOT UNINSPIRED RETURNS CONSISTENCY OF PERFORMANCE IS VERY IMPORTANT IT INCREASES THE LIKELIHOOD THAT YOU'RE GOING TO STAY ON BOARD AND REALIZE THE BENEFITS OF OWNING THAT FUND FUND ANALYSTS ARGUE THAT A FUND'S STRONG PERFORMANCE IS MORE LIKELY TO CONTINUE IF IT'S THE RESULT OF INVESTING IN A BROAD SELECTION OF STOCKS THEY SAY YOU SHOULD BE LEERY OF STOCK FUNDS THAT DO WELL BECAUSE THEY ARE INVESTED HEAVILY IN A SINGLE STOCK OR INDUSTRY SECTOR IT'S NOT JUST SECTOR FUNDS THAT FALL INTO THAT CATEGORY THERE'S A CLOSED END FUND CALLED BERGSTROM CAPITAL WHICH HAS HAD TREMENDOUS PERFORMANCE SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER BUT A THIRD OF ITS ASSETS WAS IN ONE STOCK AMGEN LAST YEAR BERGSTROM HAD POOR PERFORMANCE AMGEN DIDN'T DO TOO WELL EITHER ANALYSTS SAY YOU ALSO SHOULD BE WARY OF BOND FUNDS AND MONEY MARKET FUNDS THAT PROPEL THEMSELVES TO THE TOP OF THE PERFORMANCE CHARTS BY DECIDING TO WAIVE PART OR ALL OF THEIR ANNUAL EXPENSES BEFORE YOU BUY THOSE FUNDS MAKE SURE THE FEE WAIVER IS LIKELY TO CONTINUE MICHAEL STOLPER PUBLISHER OF MUTUAL FUND MONTHLY A SAN DIEGO NEWSLETTER CURRENTLY RECOMMENDS INVESCO INDUSTRIAL INCOME FUND FOR ONE OF HIS NEWSLETTER'S MODEL PORTFOLIOS EARLIER THIS MONTH ONE OF THE INVESCO FUND'S THREE CO MANAGERS JOHN KAWESKE WAS FIRED FOR ALLEGEDLY TRADING SECURITIES FOR HIS OWN ACCOUNT WITHOUT INFORMING HIS EMPLOYER EVEN THOUGH THE FUND'S OTHER TWO MANAGERS REMAIN MR. STOLPER SAYS HE'S GOING TO ADVISE SUBSCRIBERS TO SELL THE FUND QUOTE IT'S JUST GONE FROM A KNOWN TO AN UNKNOWN QUOTE HE SAYS FROM EXPERIENCE I'VE FOUND THAT THE BEST WAY TO DEAL WITH THAT IS FROM A DISTANCE STEPHEN SAVAGE EDITOR OF THE VALUE LINE MUTUAL FUND SURVEY A NEW YORK NEWSLETTER SAYS SIZE IS CRITICAL WITH FUNDS THAT BUY SMALLER COMPANY STOCKS HE SAYS HE WOULD BE LEERY OF SMALL STOCK FUNDS WITH ASSETS OVER TWO HUNDRED FIFTY MILLION DOLLARS BUT MR. SAVAGE RECKONS CONCERNS ABOUT FUND SIZE ARE OVERRATED WHEN IT COMES TO LARGER COMPANY STOCK FUNDS EVERYBODY'S BEEN TALKING ABOUT FIDELITY MAGELLAN FOR YEARS HE SAYS THEY SAID MAGELLAN WAS TOO BIG AT TEN BILLION DOLLARS BUT THE FUND HAS NOW GOT THIRTY BILLION DOLLARS AND IT'S COMING OFF A GREAT YEAR CONSIDERABLE GIRTH IS A BENEFIT FOR BOND FUNDS HE ADDS QUOTE IN EVALUATING BOND FUNDS EXPENSES ARE THE MOST IMPORTANT THING QUOTE MR. SAVAGE SAYS SIZE IS NICE BECAUSE YOU GET THE ECONOMIES OF SCALE IF YOU'RE A RETIREE LOOKING TO TAP YOUR MUTUAL FUNDS FOR SPENDING MONEY YOU MAY WANT TO BUY STOCK FUNDS THAT MAKE BIG INCOME DISTRIBUTIONS EACH YEAR THIS OFTEN IS THE CASE WITH EQUITY INCOME FUNDS AND GROWTH AND INCOME FUNDS BUT THESE FUNDS EVEN IF THEY ARE RUN WELL COULD BE A LOUSY INVESTMENT FOR SOMEBODY TRYING TO HOLD DOWN THEIR TAX BILL IF YOU'RE IN A TAXABLE ACCOUNT THE MORE OF THE GAINS YOU GET IN CAPITAL GAINS AND ESPECIALLY UNREALIZED CAPITAL GAINS THE BETTER OFF YOU ARE SAYS MORNINGSTAR'S MR. PHILLIPS ALL TOTAL RETURNS AREN'T EQUAL IF YOU BUY A TOP PERFORMING FUND THAT TURNS INTO A DOG THE PAIN IS EVEN MORE EXCRUCIATING IF YOU PAID A SALES COMMISSION OR IF THE FUND HAS HIGH ANNUAL EXPENSES YOU NOT ONLY GET LOUSY PERFORMANCE BUT YOU ALSO END UP EATING THE SALES COMMISSION AND THE HIGH EXPENSES SAYS MR. BROUWER THE SAN FRANCISCO INVESTMENT ADVISER ALMOST A YEAR AFTER MANILA'S TWO STOCK EXCHANGES AGREED TO MERGE THE GOVERNMENT BROKERED MARRIAGE IS FINALLY NEARING CONSUMMATION EXCHANGE OFFICIALS SAY THEY HOPE TO LINK THE TWO TRADING FLOORS BY COMPUTER THIS MONTH CREATING A SINGLE PRICE MARKET THAT WILL LIKELY DRIVE ALREADY SOARING TRADING VOLUMES EVEN HIGHER EDUARDO DE LOS ANGELES PRESIDENT OF THE UNIFIED PHILIPPINE STOCK EXCHANGE SAID TRIAL RUNS WILL CONTINUE NEXT WEEK AND THAT HE WAS HOPEFUL OF MEETING THE JANUARY DEADLINE FOR LINKING THE MANILA AND MAKATI BOURSES A TECHNICIAN'S ERROR AND AN QUOTE INTERNAL SYSTEM ERROR QUOTE HAD SCUTTLED TESTS OVER THE PAST FEW DAYS HE SAID AT A NEWS CONFERENCE TO ANNOUNCE A SERIES OF AMBITIOUS PLANS FOR THE MERGED EXCHANGE AMONG THE PROJECTS PLANNED ARE A COMPUTERIZED CLEARING HOUSE AND DEPOSITORY SYSTEM WHICH WOULD LEAD EVENTUALLY TO PAPERLESS TRADING TOUGHER LISTING REQUIREMENTS AND RULES TO PROMOTE FAIRER ALLOCATION OF NEW ISSUES THE INTRODUCTION OF OPTIONS AND BOND TRADING AND THE ESTABLISHMENT OF A FUND TO REIMBURSE INVESTORS WHEN BROKERS GO BUST SO FAR UNIFICATION HAS BEEN SLOW GOING ALTHOUGH TECHNICALLY PART OF A SINGLE EXCHANGE SINCE LAST MARCH THE MANILA AND MAKATI FLOORS HAVE CONTINUED TO TRADE INDEPENDENTLY THE SAME STOCKS ARE LISTED ON BOTH EXCHANGES BUT PRICES OCCASIONALLY VARY BETWEEN THE TWO BICKERING BETWEEN THE TWO BOURSES OVER ISSUES SUCH AS THE SITE OF A UNIFIED EXCHANGE AND ITS BYLAWS HAS HAMPERED THE COUPLING ALTHOUGH BROKERS SAY THE INFIGHTING APPEARS TO HAVE SIMMERED DOWN LATELY DUE TO PRESSURE FROM THE GOVERNMENT THE DELAYED UNION DIDN'T DETER INVESTORS LAST YEAR A FLOOD OF FOREIGN FUNDS COUPLED WITH A GENERAL OPTIMISM ABOUT PHILIPPINE ECONOMIC RECOVERY THIS YEAR PUSHED THE MANILA COMPOSITE INDEX UP ONE HUNDRED FIFTY FOUR PERCENT IN NINETEEN NINETY THREE THE BEST PERFORMANCE IN ASIA WHILE AVERAGE TRADING VOLUME JUMPED THREEFOLD TO ONE BILLION PHILIPPINE PESOS THIRTY SIX POINT EIGHT MILLION DOLLARS A DAY AT EACH FLOOR ORBIT INTERNATIONAL CORPORATION HAS COMPLETED THE BUYBACK OF TWO HUNDRED FIFTY THOUSAND COMMON SHARES OR ABOUT FOUR PERCENT OF THE COMPANY'S SHARES OUTSTANDING THE REPURCHASED SHARES WERE BOUGHT DURING THE PAST THREE MONTHS AT FOUR DOLLARS AND FIFTY SIX CENTS TO FIVE DOLLARS AND THIRTY CENTS EACH THE COMPANY SAID AS A RESULT OF THE BUYBACK PROGRAM ORBIT NOW HAS SIX MILLION THREE HUNDRED FIFTY THOUSAND SHARES OUTSTANDING THE COMPANY WHICH MAKES ELECTRONIC COMPONENTS AS WELL AS WOMEN'S AND CHILDREN'S APPAREL SAID MANAGEMENT MAY CONSIDER BUYING BACK ADDITIONAL SHARES FROM TIME TO TIME IN THE FUTURE DEPENDING ON THE PRICE AND OTHER FACTORS CENCALL COMMUNICATIONS CORPORATION SAID IT COMPLETED AN OFFERING OF SENIOR REDEEMABLE DISCOUNT NOTES DUE TWO THOUSAND FOUR AND WILL USE NET PROCEEDS OF TWO HUNDRED FORTY ONE POINT TWO MILLION DOLLARS TO FUND CAPITAL EXPENDITURES AND WORKING CAPITAL REQUIREMENTS RELATED TO ITS HIGH CAPACITY DIGITAL MOBILE NETWORKS AS WELL AS FOR FUTURE ACQUISITIONS THE BONDS NONCALLABLE FOR FIVE YEARS PAY NO INTEREST FOR THE FIRST FIVE YEARS AND THEREAFTER CARRY A TEN AND ONE EIGHTH PERCENT COUPON THE OFFERING WAS MANAGED BY MERRILL LYNCH AND COMPANY RUSSIAN PRESIDENT BORIS YELTSIN TOLD PRESIDENT CLINTON THAT HE INTENDS TO CONTINUE HIS MARCH TOWARD A MARKET ECONOMY DESPITE EXPECTED ROADBLOCKS FROM A NEW MORE CONSERVATIVE PARLIAMENT QUOTE PRESIDENT YELTSIN EMPHASIZED THERE IS NO TURNING BACK FROM FIGHTING INFLATION AND CONTINUING TO PRIVATIZE QUOTE TREASURY SECRETARY LLOYD BENTSEN SAID AFTER A TWO HOUR MEETING BETWEEN THE TWO CHIEFS OF STATE AND THEIR ECONOMIC TEAMS IN FACT THE YELTSIN GOVERNMENT WANTS TO ACCELERATE SOME OF ITS REFORMS MR. BENTSEN SAID TO DRIVE HOME THE POINT MR. YELTSIN HAD TOLD MR. CLINTON IN AN EARLIER PRIVATE MEETING THAT ANATOLY CHUBAIS THE ARCHITECT OF RUSSIA'S PRIVATIZATION PROGRAM WILL REMAIN IN HIS CABINET AS DEPUTY PRIME MINISTER THERE HAD BEEN SPECULATION THAT MR. CHUBAIS WOULDN'T BE REAPPOINTED MR. YELTSIN IS EXPECTED TO NAME A NEW CABINET MONDAY AND U. S. OFFICIALS ARE HOPING THAT HE'LL STICK WITH HIS REFORM TEAM INCLUDING FINANCE MINISTER BORIS FYODOROV MR. YELTSIN GAVE NO HINTS ABOUT THE FATE OF OTHER OFFICIALS BUT ONE U. S. PARTICIPANT IN THE MEETINGS SAID MR. FYODOROV PROJECTED A SENSE OF CONTINUITY BUT MR. CLINTON ALSO GOT A FIRSTHAND TASTE OF SOME OF THE DIFFICULTIES MR. YELTSIN AND HIS REFORM TEAM MAY ENCOUNTER FROM PARLIAMENT AT A RECEPTION FOR PROMINENT RUSSIANS AT SPASSO HOUSE THE U. S. AMBASSADOR'S RESIDENCE SERGEI BABURIN A PARLIAMENTARIAN FROM THE ANTI YELTSIN ULTRANATIONALIST PARTY THAT SCORED STRONGLY IN THE DECEMBER TWELFTH ELECTIONS LOUDLY WARNED MR. CLINTON NOT TO FORGET THE ROLE OF PARLIAMENT IN MAKING POLICY ONE OF THE ADMINISTRATION'S FEARS IS THAT PARLIAMENT WILL OPPOSE YELTSIN ANTI INFLATION POLICIES IN REMARKS AT THE RECEPTION MR. CLINTON NOTED THAT U. S. SUPPORT SHAPES EVENTS IN RUSSIA BUT STATED THAT IN THE END YOU WILL HAVE TO DECIDE YOUR FUTURE ALTHOUGH THE MEETINGS YESTERDAY MORNING DEALT MAINLY WITH THE PACE AND IMPORTANCE OF RUSSIA'S ECONOMIC CHANGES U. S. OFFICIALS SAID THAT PRESIDENTS CLINTON AND YELTSIN AGREED IN THEIR PRIVATE MEETING THAT THE TWO FORMER ADVERSARIES WILL STOP AIMING THEIR NUCLEAR WEAPONS AT EACH OTHER INSTEAD THE MISSILES WILL BE RETARGETED TOWARD THE OCEANS THE CHANGE IS MOSTLY SYMBOLIC BECAUSE THE MISSILES CAN BE REDIRECTED VERY QUICKLY BUT IT DOES REDUCE THE CHANCE OF A NUCLEAR ACCIDENT THIS CHANGE WILL BE ANNOUNCED TODAY WHEN THE LEADERS SIGN A DISARMAMENT AGREEMENT UNDER WHICH THE U. S. WILL PAY RUSSIA AND THREE OTHER FORMER SOVIET REPUBLICS FOR DISMANTLING NUCLEAR WEAPONS U. S. OFFICIALS WERE CLEARLY UPBEAT AFTER THE MEETINGS THEY SAID THERE WAS A STRONG SENSE OF RAPPORT WE'VE BEEN REASSURED ABOUT THE RUSSIANS' COMMITMENT TO REFORM AND I THINK THAT RUSSIANS HAVE BEEN REASSURED ABOUT OUR COMMITMENT TO REFORM SAID ONE PARTICIPANT IN THE MEETINGS THERE WAS A SENSE OF SHARED STRATEGY SECRETARY BENTSEN SAID THE PRESIDENTS AGREED THAT MORE ATTENTION HAS TO BE PAID TO EASING THE HARDSHIPS OF REFORM SUCH AS UNEMPLOYMENT INFLATION AND UNCERTAINTY MR. CLINTON OUTLINED SEVERAL STEPS TO SPEED AID TO MOSCOW AS REFORM CONTINUES HE SAID THE WORLD BANK THE INTERNATIONAL MONETARY FUND AND THE GROUP OF SEVEN MAJOR INDUSTRIAL NATIONS ARE PREPARED TO CARRY THROUGH ON EARLIER PROMISES OF AID AS QUICKLY AS THE REFORMS PERMIT MR. CLINTON GAVE SOME DETAILS OF PREVIOUSLY ANNOUNCED PLANS TO SUPPORT EQUITY INVESTMENTS IN NEWLY PRIVATIZED RUSSIAN BUSINESSES SINCE THE ELECTIONS BOTH WASHINGTON AND MOSCOW HAVE BEGUN TO PAY MORE ATTENTION TO BOLSTERING SOCIAL SUPPORT PROGRAMS PARTICULARLY UNEMPLOYMENT AND RETRAINING BENEFITS FOR WORKERS IN INEFFICIENT INDUSTRIES THAT MUST BE CLOSED MR. CLINTON SAID THE DISCUSSIONS FOCUSED ON QUOTE THE SPECIFIC THINGS WE CAN DO TO KEEP THE ECONOMIC REFORM GOING IN RUSSIA AND TO HELP THE RUSSIAN PEOPLE TO REALIZE THE BENEFITS OF THE COURAGEOUS CHANGES THAT HAVE BEEN GOING ON QUOTE THE U. S. EMBRACE OF BORIS YELTSIN AND HIS POLICIES IS BASED ON THE CALCULATION THAT HE HAS THE BEST CHANCE OF LEADING RUSSIA TOWARD FREE MARKETS AND ULTIMATELY STRONG DEMOCRATIC INSTITUTIONS THAT'S ONE OF THE REASONS U. S. OFFICIALS WERE SO PLEASED BY THE REAPPOINTMENT OF MR. CHUBAIS AS PRIVATIZATION CHIEF UNDER HIS LEADERSHIP ABOUT SEVENTY PERCENT OF THE NATION'S SHOPS HOTELS AND OTHER SMALL ENTERPRISES HAVE BEEN TAKEN OVER BY PRIVATE OWNERS ABOUT FORTY PERCENT OF THE WORKERS IN HEAVIER INDUSTRIES ALSO WORK FOR PRIVATE COMPANIES NOW U. S. OFFICIALS BELIEVE THESE CHANGES ARE IRREVERSIBLE BOTH U. S. AND RUSSIAN OFFICIALS HOPE THAT THE POLICIES WILL ATTRACT MORE FOREIGN INVESTMENT TO THE FORMER SOVIET UNION YESTERDAY MR. BENTSEN AND SECRETARY OF STATE WARREN CHRISTOPHER ATTENDED THE FIRST MEETING OF THE NEWLY FORMED AMERICAN CHAMBER OF COMMERCE IN MOSCOW SEVERAL OF THE BANKERS OIL EXECUTIVES AND OTHERS WHO SPOKE AT THE MEETING STRESSED HOW HARD IT WAS TO DO BUSINESS IN RUSSIA LAWS CHANGE BUREAUCRATS ARE RIGID AND UNCERTAINTY REIGNS THEY SAID THE U. S. PASTOR WHO SAID GRACE EVEN HIT THE THEME DO NOT LET US LOSE HOPE HE PRAYED THINGS FINALLY MAY BE LOOKING UP FOR INVESTORS IN MONEY MARKET MUTUAL FUNDS YIELDS ARE EXPECTED TO RISE OVER THE NEXT FEW MONTHS REVERSING A SLIDE THAT HAS LASTED NEARLY FIVE YEARS ALTHOUGH THE INCREASE IS LIKELY TO BE SMALL FUND MANAGERS EXPECT TO ONCE AGAIN SEE BIG INFLOWS OF CASH AS INVESTORS SEEK THE SAFETY AND LIQUIDITY OF MONEY FUNDS QUOTE THE MONEY MARKET'S DAY IN THE SUN IS RETURNING QUOTE SAYS NEAL LITVACK EXECUTIVE VICE PRESIDENT OF BOSTON BASED MUTUAL FUND GIANT FIDELITY INVESTMENTS IT'S NOT A YIELD PLAY IT'S AN UNCERTAINTY PLAY MR. LITVACK AND OTHERS IN THE FUND INDUSTRY REASON THAT INVESTORS WILL GET NERVOUS AS RISING INTEREST RATES PUSH DOWN BOND PRICES AND THE NET ASSET VALUE OF THEIR BOND FUND SHARES THERE'S ALSO THE POSSIBILITY OF A DECLINE IN THE STOCK MARKET WHICH REACHED RECORD HIGHS IN NINETEEN NINETY THREE COMPETITIVELY MONEY FUNDS WILL LOOK A LITTLE BETTER SAYS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT AN ASHLAND MASSACHUSETTS NEWSLETTER SECURITY WILL ONCE MORE BE AN ISSUE MONEY FUNDS ARE CONSIDERED AMONG THE MOST STABLE INVESTMENTS THEY'RE DESIGNED SO NET ASSET VALUE REMAINS AT ONE DOLLAR PER SHARE AND ONLY THE YIELD FLUCTUATES FUNDS GENERALLY PERMIT CHECK WRITING SO ASSETS ARE COMPLETELY LIQUID WHEN AND IF THERE IS A STOCK MARKET CORRECTION YOU'LL HAVE OPPORTUNITIES YOU CAN TAKE ADVANTAGE OF SAYS JOSEPH DIMARTINO PRESIDENT OF DREYFUS CORPORATION IN NEW YORK SOME CASH STARTED TRICKLING INTO MONEY FUNDS AT THE END OF THE FOURTH QUARTER ASSETS OF TAXABLE FUNDS OPEN TO INDIVIDUAL INVESTORS WERE THREE HUNDRED SEVEN POINT ONE THREE BILLION DOLLARS AT YEAR END ACCORDING TO MONEY FUND REPORT COMPARED WITH THREE HUNDRED FIVE POINT FOUR NINE BILLION DOLLARS THREE MONTHS EARLIER ASSETS WERE THREE HUNDRED NINE POINT THREE ONE BILLION DOLLARS AT THE END OF NINETEEN NINETY TWO WHEN FEWER FUNDS REPORTED TO THE WEEKLY NEWSLETTER YIELDS INCHED UP DURING THE LATEST QUARTER THE AVERAGE YIELD ON TAXABLE FUNDS OPEN TO INDIVIDUALS WAS TWO POINT FIVE EIGHT PERCENT IN THE FOURTH QUARTER UP FROM TWO POINT FIVE FIVE PERCENT IN THE THIRD QUARTER PORTFOLIO MANAGERS INDICATED THEY EXPECT FURTHER INCREASES THE AVERAGE MATURITY OF ALL TAXABLE FUNDS' INVESTMENTS SHORTENED TO FIFTY SEVEN DAYS IN THE LAST WEEK OF DECEMBER FROM SIXTY THREE DAYS IN SEPTEMBER STILL THEY DON'T EXPECT SIGNIFICANT MOVES SOON ROBERT F. AUWAERTER VICE PRESIDENT OF VANGUARD GROUP IN VALLEY FORGE PENNSYLVANIA FOR INSTANCE THINKS THE FEDERAL RESERVE WILL PUSH UP SHORT TERM INTEREST RATES A QUARTER TO HALF A PERCENTAGE POINT IN THE NEXT SIX MONTHS AND MONEY FUND YIELDS WILL FOLLOW WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT THINKS AN INCREASE OF A QUARTER PERCENTAGE POINT IS POSSIBLE DURING THE FIRST THREE MONTHS OF THIS YEAR STILL THAT STILL LEAVES RATES VERY LOW HE NOTES QUOTE IT DOESN'T DO MUCH FOR INVESTORS QUOTE FOR NOW INVESTORS CAN DO BETTER WITH TAX EXEMPT MONEY MARKET FUNDS THE AVERAGE COMPOUND YIELD ON TAX FREE FUNDS WHICH ASSUMES REINVESTMENT OF DIVIDENDS WAS TWO POINT THREE SIX PERCENT IN THE LATEST WEEK ACCORDING TO MONEY FUND REPORT FOR AN INVESTOR IN THE TOP THIRTY NINE POINT SIX PERCENT FEDERAL TAX BRACKET THAT'S EQUIVALENT TO A TAXABLE THREE POINT NINE ONE PERCENT MEANWHILE THE COMPARABLE AVERAGE ON ALL TAXABLE FUNDS WHICH INCLUDES FUNDS OPEN TO INSTITUTIONS WAS TWO POINT SEVEN EIGHT PERCENT THE SPREAD OR DIFFERENCE IS EVEN GREATER FOR INVESTORS IN HIGH TAX STATES SUCH AS NEW YORK AND CALIFORNIA WHO INVEST IN TAX EXEMPT FUNDS THAT BUY SECURITIES ONLY FROM THAT STATE IT'S AN OBVIOUS PLACE TO PICK UP INCOME THAT A LOT OF PEOPLE DON'T TAKE ADVANTAGE OF SAYS MR. LITVACK HE ESTIMATES THAT ONLY TWENTY FIVE PERCENT OF THE PEOPLE WHO COULD BENEFIT FROM TAX FREE HOLDINGS BUY TAX EXEMPT INVESTMENTS THE SECURITIES AND EXCHANGE COMMISSION HAS MOVED TO TIGHTEN RESTRICTIONS ON TAX FREE MONEY FUNDS TO MATCH THE TOUGH RESTRICTIONS IT IMPOSED ON TAXABLE FUNDS IN JUNE NINETEEN NINETY ONE UNDER PROPOSED RULES NATIONAL TAX EXEMPT FUNDS WOULD BE LIMITED TO A MAXIMUM FIVE PERCENT OF THEIR ASSETS IN SECURITIES OF A SINGLE ISSUER THE SAME LIMIT IMPOSED ON TAXABLE FUNDS STATE SPECIFIC FUNDS WOULDN'T BE SUBJECT TO THE FIVE PERCENT LIMIT BUT WOULD BE REQUIRED TO MAKE ADDITIONAL DISCLOSURES IN THEIR PROSPECTUSES ABOUT RISKS ASSOCIATED WITH LACK OF DIVERSIFICATION STATE SPECIFIC FUNDS ALSO WOULDN'T BE ALLOWED TO BUY LESS THAN TOP RATED SECURITIES THE S. E. C. PROPOSAL ALSO FORMALIZES SOME RESTRICTIONS PREVIOUSLY ISSUED IN A LETTER FROM THE DIRECTOR OF THE DIVISION OF INVESTMENT MANAGEMENT AND INCLUDES A NUMBER OF TECHNICAL PROVISIONS IT IS OPEN FOR PUBLIC COMMENT UNTIL APRIL SIXTH AFTER WHICH THE STAFF WILL DRAFT A FINAL PROPOSAL FOR CONSIDERATION BY THE FULL COMMISSION ALTHOUGH NO TAX FREE FUND HAS EVER BROKEN THE BUCK OR HAD ITS NET ASSET VALUE FALL BELOW ONE DOLLAR A SHARE WE WANT TO REDUCE THE LIKELIHOOD THAT THERE WILL BE A PROBLEM SAYS ROBERT PLAZE ASSISTANT DIRECTOR OF THE S. E. C.'S DIVISION OF INVESTMENT MANAGEMENT A LOOK AT CONSUMER ORIENTED MONEY FUNDS SOME OF THEIR HOLDINGS AND THE AVERAGE MATURITY OF THEIR INVESTMENTS AT THE END OF THE FOURTH QUARTER PERFORMANCE FIGURES ARE ESTIMATED ANNUALIZED YIELDS WHICH INCLUDE EARNINGS FROM THE FUND'S INVESTMENTS AND THE EFFECTS OF COMPOUNDING FUNDS OPEN ONLY TO INSTITUTIONS SPECIAL PURPOSE FUNDS AND TAX EXEMPT FUNDS ARE EXCLUDED FROM THESE TABLES NEWS CORPORATION'S STAR T. V. REPORTED A BIG INCREASE IN HOUSEHOLDS RECEIVING ITS PAN ASIA SATELLITE TELEVISION SERVICE GARY DAVEY THE NEWLY APPOINTED CHIEF EXECUTIVE OF STAR SAID THE RESULTS OF THE NETWORK'S LATEST VIEWER STUDY SHOW THE NUMBER OF HOMES RECEIVING AT LEAST ONE OF STAR'S CHANNELS IN A THIRTEEN COUNTRY SAMPLING OF ITS VIEWERS MORE THAN TRIPLED ACCORDING TO THE SURVEY CONDUCTED FOR STAR BY MARKET RESEARCH FIRM FRANK SMALL AND ASSOCIATES ONE OR MORE STAR CHANNELS COULD BE SEEN IN FORTY TWO MILLION HOMES AS OF NOVEMBER UP FROM ELEVEN POINT TWO MILLION IN JANUARY THE LATEST STUDY WAS CARRIED OUT IN THIRTEEN OF THE FIFTY THREE COUNTRIES IN THE NETWORK'S BROADCAST REACH FROM ISRAEL TO JAPAN THE RESULTS WERE WELCOME NEWS FOR STAR WHICH PEOPLE CLOSE TO NEWS CORPORATION SAY HAS BEEN THE OBJECT OF A POWER STRUGGLE BETWEEN FOX INCORPORATED AND BRITISH SKY BROADCASTING BOTH CONTROLLED BY NEWS CORPORATION LAST MONTH JAMES F. GRIFFITHS CHOSEN TO RUN STAR BY NEWS CORPORATION CHAIRMAN RUPERT MURDOCH WAS REMOVED FROM HIS POST BY BSKYB CHAIRMAN SAM CHISHOLM AFTER FIVE MONTHS ON THE JOB MR. GRIFFITHS SINCE WAS NAMED A SENIOR VICE PRESIDENT AT FOX INCORPORATED LAST WEEKEND MR. DAVEY A PROTEGE OF MR. CHISHOLM WHO IS CREDITED WIDELY WITH HELPING TURN AROUND BSKYB SUCCEEDED MR. GRIFFITH THE SURVEY RESULTS SHOW THE NUMBER OF STAR'S VIEWERS IN CHINA GREW DRAMATICALLY OVER THE TEN MONTHS DESPITE AN EDICT ISSUED IN OCTOBER BY BEIJING THAT SOUGHT TO LIMIT THE RECEPTION BY CHINESE CITIZENS OF UNCENSORED FOREIGN BROADCASTS THAT DIRECTIVE WAS INTERPRETED WIDELY AS A SLAP AT NEWS CORPORATION ACCORDING TO THE SURVEY THE NUMBER OF HOMES ABLE TO RECEIVE STAR IN CHINA STANDS AT THIRTY POINT FIVE MILLION MORE THAN A SIXFOLD INCREASE STAR'S LATEST STUDY WAS SCHEDULED TO BE RELEASED IN EARLY DECEMBER BUT STAR SUSPENDED THE FIELD WORK IN CHINA FOR ABOUT A MONTH FOLLOWING BEIJING'S EDICT THE FIELD WORK WAS CONDUCTED BY THE CHINESE STATE STATISTICAL BUREAU UNDER CONTRACT FROM FRANK SMALL THE NEW FIGURES DON'T OFFER A DETAILED LOOK AT STAR'S VIEWER HABITS SUCH AS HOW LONG THEY WATCH OR WHAT PROGRAMS THEY FAVOR MR. DAVEY SAID STUDIES LATER IN THE YEAR WOULD OFFER MORE PRECISE DATA IN INDIA STAR'S SECOND LARGEST MARKET THE BROADCASTER'S PENETRATION MORE THAN DOUBLED TO SEVEN POINT THREE MILLION TAIWAN WHERE THE NUMBER OF VIEWER HOMES ROSE TWENTY PERCENT TO TWO HUNDRED THIRTY THOUSAND REMAINS STAR'S THIRD LARGEST MARKET THAI VIEWER HOMES MORE THAN QUADRUPLED TO ONE HUNDRED FORTY TWO THOUSAND IN THE MIDDLE EAST WHERE STAR IS RECEIVED IN MORE THAN ONE MILLION HOMES PENETRATION MORE THAN DOUBLED GROWTH IN PERCENTAGE TERMS WAS GREATEST IN SOUTH KOREA WHICH JUMPED MORE THAN NINE TIMES TO ONE HUNDRED EIGHTY THREE THOUSAND EIGHT HUNDRED THIRTY EIGHT HOMES BUT VIEWERSHIP THERE WAS MEASURED OVER A LONGER PERIOD JUNE NINETEEN NINETY TWO THROUGH NOVEMBER MENTAL ILLNESS IN AMERICA IS HEAVILY CONCENTRATED AMONG FOURTEEN PERCENT OF THE NATION'S POPULATION WHO HAVE THREE OR MORE LIFETIME BRUSHES WITH DEPRESSION ALCOHOLISM OR OTHER PSYCHIATRIC DISORDERS THAT FINDING CENTRAL TO THE BATTLE OVER HEALTH CARE REFORM COMES FROM A LANDMARK GOVERNMENT CENSUS OF THE NATION'S MENTAL HEALTH THE GOVERNMENT SENT A TEAM OF RESEARCHERS TO DO SOMETHING NO ONE HAD EVER DONE BEFORE INTERVIEW A LARGE NATIONAL SAMPLE OF AMERICANS ABOUT THEIR EXPERIENCE WITH EVERY MAJOR MENTAL DISORDER THE SURVEY ALSO FOUND THAT NEARLY HALF OF ALL AMERICANS EXPERIENCE A PSYCHIATRIC DISORDER AT LEAST ONCE IN THEIR LIFETIME FAR HIGHER THAN PREVIOUS ESTIMATES BUT THE SURVEY USING THE AMERICAN PSYCHIATRIC ASSOCIATION'S DEFINITIONS OF DISORDER INCLUDES FUNCTIONAL CASES OF MILD DEPRESSION ANXIETY AND OTHER CONDITIONS THAT OFTEN DO NOT REQUIRE PROFESSIONAL CARE THE FOURTEEN PERCENT GROUP NEVER BEFORE IDENTIFIED OR DESCRIBED COULD OFFER A MIDDLE GROUND IN THE POLICY DEBATE BETWEEN ADVOCATES WHO BRANDISH FAR HIGHER NUMBERS AND CYNICS WHO DISMISS MUCH MENTAL ILLNESS AS LATE TWENTIETH CENTURY MALAISE QUOTE THE PEOPLE THAT CLEARLY NEED HELP ARE THOSE WHO HAVE THAT PILEUP OF PROBLEMS QUOTE SAYS RONALD KESSLER THE UNIVERSITY OF MICHIGAN SURVEY RESEARCHER WHO LED THE THREE YEAR STUDY THE TRICK FOR THE FUTURE IS TO FIGURE OUT WHO ARE THE PEOPLE AT RISK FOR THAT PILEUP AND TO DEVELOP EARLY INTERVENTION THE SURVEY FUNDED BY THE U. S. GOVERNMENT OFFERS A VIVID PICTURE OF THE PEOPLE IN THE ILL STARRED FOURTEEN PERCENT GROUP THEY ARE MOST LIKELY TO BE LOW INCOME LOW EDUCATED CITY DWELLING WHITE WOMEN IN THEIR TWENTIES AND THIRTIES IN AN INTERVIEW MR. KESSLER OUTLINES ONE COMMON LIFE STORY OF THE PILEUP GROUP A SCHOOLGIRL WITH ANXIETY DISORDER SEEKS TO EASE HER PAIN BY ABUSING DRUGS IN HER TWENTIES HER LIFE IN GROWING DISARRAY SHE PLUNGES INTO DEPRESSION THE SCENARIO'S DETAILS VARY BUT BY THE TIME YOU'RE IN EARLY MIDLIFE YOU HAVE SOMETHING HAVING TO DO WITH ANXIETY SOMETHING HAVING TO DO WITH DEPRESSION AND SOMETHING HAVING TO DO WITH SUBSTANCE ABUSE HE SAYS ONE EYE POPPING STATISTIC IN THE SURVEY IN A GIVEN YEAR THE FOURTEEN PERCENT GROUP ACCOUNTS FOR EIGHTY NINE PERCENT OF ALL CASES OF THE MOST SEVERE PSYCHIATRIC DISORDERS SUCH AS SCHIZOPHRENIA AND MANIC DEPRESSION THE REPORT PUBLISHED IN THE JANUARY ISSUE OF THE ARCHIVES OF GENERAL PSYCHIATRY CONFIRMS SEVERAL FACTS ABOUT MENTAL ILLNESS LONG SUSPECTED OR ESTIMATED BASED ON WEAKER DATA DEPRESSION AND OTHER MOOD DISORDERS ARE MORE COMMON AMONG WOMEN TWENTY FOUR PERCENT HAVE AT LEAST ONE LIFETIME EPISODE COMPARED WITH FIFTEEN PERCENT FOR MEN THE SAME IS TRUE OF ANXIETY DISORDERS A THIRTY ONE PERCENT RATE FOR WOMEN COMPARED WITH NINETEEN PERCENT FOR MEN BUT MEN ARE FAR MORE LIKELY TO ABUSE OR BECOME ADDICTED TO DRUGS OR ALCOHOL AT LEAST ONCE IN THEIR LIFETIME THIRTY FIVE PERCENT COMPARED WITH EIGHTEEN PERCENT FOR WOMEN MEN ARE ALSO MUCH MORE LIKELY TO HAVE ANTISOCIAL PERSONALITIES A DIAGNOSIS DESCRIBING PERSISTENT CRIMINAL OR DESTRUCTIVE BEHAVIOR FIVE PERCENT COMPARED WITH ONE PERCENT FOR WOMEN THE REPORT PAINTS A BLEAK PICTURE OF SUBSTANCE ABUSE IN AMERICA WITH SHARPLY HIGHER RATES THAN EARLIER SURVEYS MR. KESSLER CAUTIONS THAT THE REPORTS OF ABUSE INCLUDE RAMBUNCTIOUS TEENAGERS WHO GO ON TO LEAD HEALTHY ADULT LIVES BUT ELEVEN PERCENT OF ALL MEN REPORTED A DEPENDENCE ON ALCOHOL IN THE YEAR PRECEDING THE SURVEY FOUR PERCENT REPORTED DRUG DEPENDENCE MR. KESSLER SAYS THE TWO GROUPS HAVE A BIG OVERLAP THE NEW DATA SUPPORT THE BELIEF THAT MENTAL ILLNESS BECOMES MORE COMMON AS INCOME AND EDUCATION LEVELS DROP A MORE SURPRISING FINDING AMERICANS BETWEEN THE AGES OF TWENTY FIVE AND THIRTY FOUR ARE MORE LIKELY THAN ANY OTHER AGE GROUP TO HAVE SUFFERED A PSYCHIATRIC DISORDER SOMETIME IN THEIR LIVES MR. KESSLER SAYS OTHER SURVEYS HAVE FOUND SIMILAR RESULTS IN PART BECAUSE MODERN YOUNG PEOPLE FACE INORDINATE STRESSES FROM DRUGS ALCOHOL AND FEARS ABOUT THE FUTURE THE SCARINESS OF WHAT MIGHT BE BAD IS A LOT WORSE THAN THE REALITY OF WHAT DID GO WRONG HE SAYS THE DATA ALSO FOUND MANY DIAGNOSES ARE SIGNIFICANTLY MORE WIDESPREAD AMONG WHITES THAN BLACKS BLACKS WERE SIXTY THREE PERCENT LESS LIKELY TO HAVE DEPRESSION OR ANOTHER MOOD DISORDER AND THIRTY FIVE PERCENT LESS LIKELY TO HAVE A SUBSTANCE ABUSE PROBLEM THOSE FINDINGS ECHO EARLIER SURVEYS THOUGH THE GAPS BETWEEN WHITES AND BLACKS DIDN'T PREVIOUSLY APPEAR TO BE SO WIDE OF PARTICULAR IMPORTANCE FOR HEALTH POLICY MAKERS THE STUDY LOOKED AT HOW COMMONLY AMERICANS SEEK PROFESSIONAL HELP FOR MENTAL DISORDERS ONLY ABOUT FORTY PERCENT OF ALL THOSE WHO REPORTED ANY DISORDER SAID THEY OBTAINED PROFESSIONAL HELP OF COURSE WITH ANY MEDICAL PROBLEM ONLY A FRACTION OF PEOPLE WITH A COMPLAINT ACTUALLY TAKE THE TROUBLE TO CALL A DOCTOR MORE DISTURBINGLY ONLY SIX OUT OF TEN PEOPLE IN THE CRUCIAL FOURTEEN PERCENT PILEUP GROUP WITH THREE OR MORE LIFETIME DISORDERS EVER RECEIVED TREATMENT AND OF ALL THE PEOPLE WITH THREE OR MORE DISORDERS DURING THE YEAR PRECEDING THE SURVEY ONLY A THIRD RECEIVED TREATMENT DURING THAT YEAR THESE RESULTS ARGUE FOR THE IMPORTANCE OF MORE OUTREACH AND MORE RESEARCH ON BARRIERS TO PROFESSIONAL HELP SEEKING MR. KESSLER AND HIS CO AUTHORS WRITE AN IMPORTANT UNANSWERED QUESTION IS THE EXTENT OF THOSE BARRIERS IN OTHER BRANCHES OF MEDICINE THE CLINTON ADMINISTRATION'S NATIONAL HEALTH PLAN HAS DRAWN CONTROVERSY BY SINGLING OUT MENTAL HEALTH FOR SPECIAL LIMITS IMPOSING CEILINGS ON HOSPITAL DAYS AND OUTPATIENT VISITS THAT DON'T APPLY TO ANY OTHER KIND OF CARE THUS FAR THE DEBATE OVER MENTAL HEALTH CARE HAS DRAWN HEAVILY ON A SINGLE EPIDEMIOLOGICAL STUDY IN WHICH FIVE BIG UNIVERSITIES SENT RESEARCHERS INTO THEIR LOCAL NEIGHBORHOODS BETWEEN NINETEEN EIGHTY AND NINETEEN EIGHTY FIVE THE FEDERAL GOVERNMENT ADJUSTED THE FINDINGS TO TRY TO REFLECT THE ENTIRE NATIONAL POPULATION IN THE NEW STUDY MR. KESSLER'S TEAM AT THE UNIVERSITY OF MICHIGAN SENT SURVEYORS ACROSS THE COUNTRY TO INTERVIEW A SAMPLE OF EIGHT THOUSAND NINETY EIGHT AMERICANS IN THIRTY FOUR STATES BETWEEN NINETEEN NINETY AND NINETEEN NINETY TWO THE SURVEY GREW OUT OF A MANDATE BY CONGRESS TO STUDY THE CONCURRENCE OF SUBSTANCE ABUSE AND PSYCHIATRIC DISORDERS THE NATIONAL HOCKEY LEAGUE IS COMING OUT OF THE ICE AGE WHILE OTHER PROFESSIONAL SPORTS LEAGUES GOT MULTIBILLION DOLLAR TELEVISION CONTRACTS THE N. H. L. WENT FOURTEEN YEARS BETWEEN GAMES ON NETWORK T. V. OTHER LEAGUES GENERATED ONE BILLION DOLLAR PLUS IN ANNUAL LICENSING SALES THE N. H. L. DID TEN PERCENT OF THAT OTHER LEAGUES FOLLOWED U. S. POPULATION GROWTH INTO THE SUN BELT THE N. H. L. AS OF NINETEEN NINETY HAD ONE TEAM OUTSIDE THE FROST BELT BUT AS IT PREPARES FOR ITS BIG ALL STAR GAME IN NEW YORK NEXT WEEK THE LEAGUE IS WELL INTO AN AGGRESSIVE NEW CAMPAIGN TO ATTRACT FANS AND CORPORATE SPONSORS QUOTE THERE'S MORE UPSIDE TO HOCKEY RELATIVELY THAN ANY OTHER SPORT QUOTE SAYS JOHN MCMULLEN OWNER OF THE NEW JERSEY DEVILS WE JUST NEEDED A MORE PROGRESSIVE TYPE OF LEADERSHIP THAT ARRIVED LAST FEBRUARY WHEN GARY BETTMAN MOVED ACROSS NEW YORK'S FIFTH AVENUE FROM THE NATIONAL BASKETBALL ASSOCIATION TO BECOME N. H. L. COMMISSIONER A LONGTIME AIDE TO N. B. A. COMMISSIONER DAVID STERN HE IS NOW TRYING TO INJECT SOME OF THE MARKETING SAVVY THAT DROVE THE BASKEBALL LEAGUE'S DRAMATIC RISE THE ALL STAR GAME FESTIVITIES STARTING TODAY WITH THE OPENING OF A HALL OF FAME EXHIBIT IN GRAND CENTRAL STATION ILLUSTRATE IN A NUTSHELL THE NEW AGE N. H. L. THE LEAGUE WILL PRESENT A WEEK LONG BLITZ OF HOCKEY ACTIVITIES IN AN EFFORT THAT MIRRORS ITS NATIONAL PROGRAM TO BROADEN PARTICIPATION AND INTEREST IN THE SPORT IT WILL ALSO SHOWCASE HOCKEY FOR A RARE NATIONAL T. V. AUDIENCE THIS IS A MISUNDERSTOOD GAME SAYS MR. BETTMAN THESE ARE LIKABLE GOODLOOKING ATHLETES AND A FAST HARD HITTING SPORT IT'S JUST SUFFERED FROM UNDEREXPOSURE IT'S A PROBLEM OF THE N. H. L.'S OWN MAKING FOR YEARS IT MAINLY CATERED TO RABID FANS IN THE HOCKEY HOTBEDS OF CANADA AND THE NORTHERN U. S. THE TEAMS' CONSERVATIVE OWNERS WERE CONTENT TO PLAY TO NINETY FIVE PERCENT CAPACITY IN THEIR ARENAS AND TURN A MODEST PROFIT LEAGUE EFFORTS TO PUT EXPANSION TEAMS IN OTHER REGIONS WERE MOSTLY ABANDONED AS THE N. H. L. REVERTED TO FAMILIAR TURF HOCKEY WAS TAGGED AS A REGIONAL SPORT AND COULDN'T GET A NETWORK T. V. CONTRACT THE SPORT MOSTLY RECEIVED NOTICE FOR ITS SPECTACULAR PLAYER BRAWLS REINFORCING ITS IMAGE AS A GAME PLAYED BY GAP TOOTHED GOONS FOR BLUE COLLAR BEER GUZZLERS I WENT TO A FIGHT THE JOKE WENT AND A HOCKEY GAME BROKE OUT IN NINETEEN EIGHTY FIVE THE N. H. L. DID GET A THREE YEAR DEAL WITH E. S. P. N. THE A. B. C. SLASH CAPITAL CITIES INCORPORATED UNIT BUT IN NINETEEN EIGHTY EIGHT IT ABANDONED E. S. P. N. FOR SPORTSCHANNEL THE CABLEVISION SYSTEMS INCORPORATED UNIT THE LEAGUE GOT MORE MONEY BUT SPORTSCHANNEL'S PROJECTED GROWTH DIDN'T MATERIALIZE AND IT HAD TO CRAWL BACK TO E. S. P. N. IN NINETEEN NINETY TWO FOR A FIVE SEASON EIGHTY MILLION DOLLAR CONTRACT THE LEAGUE'S TROGLODYTES FINALLY STIRRED T. V. AND OTHER NONGATE REVENUE STARTED TO MATTER WHEN STARS LIKE WAYNE GRETZKY AND MARIO LEMIEUX STARTED GETTING BIG CONTRACTS FORTY THREE MILLION DOLLARS OVER SEVEN YEARS FOR LEMIEUX AND THE AVERAGE PLAYER'S SALARY ROSE TOO ABOUT DOUBLING TO MORE THAN FIVE HUNDRED THOUSAND DOLLARS OVER THE PAST FOUR SEASONS QUOTE HOCKEY WAS THE LAST SPORT TO SEE ITS SALARY STRUCTURE EXPLODE QUOTE SAYS NEIL SMITH THE NEW YORK RANGERS' PRESIDENT IT NEEDED A PERSON WHO'S SHARP IN MARKETING WHO COULD GET SOURCES OF REVENUE TO KEEP PACE WITH THE PAY MR. BETTMAN HAS AUGMENTED HIS OWN KNOW HOW WITH KEY HIRES STEPHEN J. SOLOMON RECRUITED FROM A. B. C. SPORTS AS THE N. H. L.'S CHIEF OPERATING OFFICER IS IN TURN RECRUITING NEW CORPORATE SPONSORS HIS EMPHASIS THE BIG AUDIENCE OF EIGHTEEN TO THIRTY FOUR YEAR OLDS WHO ARE DRAWN TO HOCKEY ACCORDING TO NIELSEN RATINGS FOR HOCKEY'S RARE NATIONAL T. V. APPEARANCES THE N. H. L. HAS ALSO HIRED RICHARD DUDLEY FROM MAJOR LEAGUE BASEBALL PROPERTIES PRO SPORTS' TOP GROSSING LICENSING OUTLET TO HEAD N. H. L. ENTERPRISES THE LOWEST AS RECENTLY AS NINETEEN NINETY WHEN BASEBALL GENERATED ONE POINT FIVE BILLION DOLLARS IN LICENSED MERCHANDISE HOCKEY PRODUCED ONLY ONE HUNDRED FIFTY MILLION DOLLARS THE N. H. L.'S DRIVE TO DO MORE WITH LICENSING ACTUALLY PRECEDED MR. BETTMAN IN NINETEEN NINETY TWO AND NINETEEN NINETY THREE THE HOTTEST LOGOS IN SPORTS LICENSING BELONGED TO THE SAN JOSE CALIFORNIA SHARKS AND THE ANAHEIM CALIFORNIA MIGHTY DUCKS RESPECTIVELY THE N. H. L.'S LICENSED GOODS SALES ROSE TO EIGHT HUNDRED MILLION DOLLARS IN NINETEEN NINETY THREE ACCORDING TO SPORTING GOODS DEALER A TRADE PUBLICATION THE N. H. L.'S BREAKOUT FROM THE FROST BELT ALSO PRECEDED MR. BETTMAN THE SHARKS ARRIVED IN NINETEEN NINETY ONE THE TAMPA BAY LIGHTNING IN NINETEEN NINETY TWO AND THE MIGHTY DUCKS OWNED BY WALT DISNEY COMPANY AND THE FLORIDA PANTHERS OWNED BY BLOCKBUSTER VIDEO CHIEF H. WAYNE HUIZENGA IN NINETEEN NINETY THREE BUT IT HAS BEEN LEFT TO MR. BETTMAN TO TURN THOSE TOEHOLDS INTO WHAT HE CALLS A LASTING NATIONAL FOOTPRINT FOR THE N. H. L. ONE PRIORITY IS A GRASSROOTS EFFORT TO CREATE YOUNG HOCKEY ENTHUSIASTS IN THE NEW TERRITORIES THE N. H. L. IS SPONSORING STREETHOCKEY AND ROLLER HOCKEY LEAGUES IN EIGHT MARKETS AND PLANS TO ADD MORE YOU HAVE A HOOP IN EVERY DRIVEWAY BUT NOT ENOUGH KIDS PLAYING HOCKEY MR. BETTMAN SAYS THE LEAGUE'S ALL STAR WEEK BLITZ CALLED NEW YORK SKATES WILL ALSO BE BIG ON PARTICIPATION THE LEAGUE WILL STAGE FREE HOCKEY CLINICS IN ALL FIVE BOROUGHS ONE DAY IT WILL CLOSE OFF A BLOCK JUST OUTSIDE MADISON SQUARE GARDEN FOR A STREETHOCKEY FESTIVAL IT WILL ALLOW AVERAGE SKATERS ONTO A CENTRAL PARK RINK TO CRUISE THE ICE WITH RETIRED N. H. L. GREATS AND IT WILL HAVE A LUNCH HOUR SHOOTOUT AT ROCKEFELLER CENTER ALLOWING ALL COMERS TO TEST THEIR SLAPSHOT SPEED THE ALL STAR GAME ITSELF TO BE SHOWN ON N. B. C. WILL BE PRODUCED BY THE N. H. L. THE LEAGUE HAS IMPORTED CRAIG JANOFF THE DIRECTOR OF A. B. C.'S QUOTE MONDAY NIGHT FOOTBALL QUOTE AND AN ALL STAR CREW OF TECHNICIANS TO PUT TOGETHER A SLICK SHOW THERE WILL BE LOTS OF ICE LEVEL CAMERAS TO ALLOW CLOSEUP SHOTS LOTS OF RINK SIDE MICROPHONES TO ENHANCE THE SOUNDS OF SHOTS AND SLAMS AND SOME BETWEEN PERIOD FEATURES TO INTRODUCE TOPNOTCH BUT LITTLE KNOWN PLAYERS WE WANT TO STRIP AWAY THE HELMETS SAYS N. H. L. BROADCAST CHIEF GLENN ADAMO HOME BUILDERS ARE EXPECTED TO POST HIGHER EARNINGS FOR THE FOURTH QUARTER AS LARGE CONTRACTORS ENJOYING EASIER ACCESS TO CREDIT CONTINUED TO GAIN MARKET SHARE QUOTE NEW ORDERS AND BACKLOG SHOULD BE UNIFORMLY HEALTHY AS WE BEGIN NINETEEN NINETY FOUR WITH FAVORABLE INTEREST RATES AND IMPROVING CONSUMER CONFIDENCE QUOTE ANALYST BARBARA ALLEN OF DONALDSON LUFKIN AND JENRETTE SECURITIES SAID A PERENNIAL BULL ON HOME BUILDERS SHE PREDICTED POWERFUL EARNINGS GAINS FROM BUILDERS AND SUPPLIERS MONTGOMERY SECURITIES ANALYST JAMES F. WILSON SAID THAT ON AVERAGE QUARTERLY EARNINGS FOR THE COMPANIES HE COVERS SHOULD INCREASE THIRTY FOUR POINT SEVEN PERCENT AND RECOMMENDS THAT INVESTORS STAY WEIGHTED IN THE HOUSING SECTOR WE MAY SEE STRONGER THAN EXPECTED ORDER RESULTS FROM A LOT OF COMPANIES MR. WILSON SAID NOTING THAT RYLAND GROUP INCORPORATED AND D. R. HORTON INCORPORATED IN PARTICULAR ARE LIKELY TO REPORT STRONG ORDERS OPERATING PROFIT MARGINS HOWEVER AREN'T EXPECTED TO BE MUCH BETTER THAN A YEAR EARLIER WITH THE RISING LUMBER COSTS EARNINGS FOR MANUFACTURED HOUSING COMPANIES WHICH ACCORDING TO MERRILL LYNCH ANALYST ROBERT CURRAN CONTINUE IN A CYCLICAL UPSWING ALSO SHOULD BE STRONG MONTGOMERY'S MR. WILSON SEES THE MANUFACTURED HOUSING COMPANIES HE COVERS POSTING QUARTERLY EARNINGS UP EIGHTEEN POINT THREE PERCENT ACCORDING TO DONALDSON LUFKIN AND JENRETTE'S MS. ALLEN HOME CONSTRUCTION EARNINGS STRENGTH IN THE RECENT QUARTER SHOULD BE LED BY LENNAR CORPORATION WITH AN ESTIMATED EIGHTY PERCENT GAIN AND PULTE CORPORATION WITH AN ESTIMATED FORTY PERCENT TO FIFTY PERCENT GAIN LENNAR SHOULD REPORT PROFIT BETWEEN EIGHTY FIVE CENTS A SHARE AND NINETY FIVE CENTS A SHARE FOR ITS FOURTH QUARTER ENDED NOVEMBER THIRTIETH COMPARED WITH FIFTY CENTS A YEAR EARLIER MS. ALLEN SAID SHE NOTED THAT LENNAR'S ORDERS REMAINED COMFORTABLY AHEAD OF NINETEEN NINETY TWO PULTE A NATIONAL BUILDER OF SINGLE FAMILY HOMES AND CONDOMINIUMS IS EXPECTED TO REPORT NET INCOME BETWEEN EIGHTY CENTS A SHARE AND NINETY CENTS A SHARE FOR THE FINAL QUARTER COMPARED WITH SIXTY ONE CENTS A SHARE A YEAR EARLIER MS. ALLEN SAID DALLAS BASED CENTEX CORPORATION IS EXPECTED TO REPORT EARNINGS ROSE TO AROUND SIXTY NINE CENTS A SHARE FROM FIFTY FIVE CENTS A SHARE FOR THE FISCAL THIRD QUARTER ENDED DECEMBER DONALDSON LUFKIN AND JENRETTE'S MS. ALLEN PROJECTS EARNINGS BETWEEN SIXTY CENTS A SHARE AND SEVENTY CENTS A SHARE CITING THE CONTINUED STRONG PERFORMANCE OF CENTEX'S MORTGAGE BANKING BUSINESS A SPOKESWOMAN SAID THE COMPANY EXPECTS TO REPORT EARNINGS AROUND SIXTY NINE CENTS A SHARE FOR THE QUARTER ANALYSTS INCLUDING PAINEWEBBER INCORPORATED'S JEFFREY SPRAGUE NOTED KAUFMAN AND BROAD HOME CORPORATION'S DECEMBER ORDERS WERE STRONGER THAN ANTICIPATED FOR THE FOURTH QUARTER ENDED NOVEMBER THIRTIETH ORDERS INCREASED FIFTY PERCENT FROM A YEAR EARLIER MONTGOMERY SECURITIES' MR. WILSON ESTIMATES ANALYSTS EXPECT THE LOS ANGELES HOME BUILDER TO REPORT EARNINGS AROUND FORTY FIVE CENTS A SHARE FOR THE FINAL PERIOD THE COMPANY REPORTED PROFIT OF FORTY ONE CENTS A SHARE IN THE YEAR EARLIER QUARTER DONALDSON LUFKIN AND JENRETTE'S MS. ALLEN SAID STANDARD PACIFIC CORPORATION ANOTHER CALIFORNIA COMPANY CAN REPORT PROFIT OF FIVE CENTS A SHARE TO TEN CENTS A SHARE FOR THE FINAL QUARTER STANDARD PACIFIC REPORTED EARNINGS OF THREE CENTS A SHARE IN THE YEAR EARLIER QUARTER AND FIFTEEN CENTS A SHARE FOR NINETEEN NINETY TWO SHE SAID STANDARD PACIFIC'S ORDERS ROSE FIFTY PERCENT IN OCTOBER AND FIFTY FOUR PERCENT IN NOVEMBER WITH ONE LESS WEEK IN THE YEAR OVER YEAR COMPARISON MONTGOMERY'S MR. WILSON SEES RYLAND GROUP REPORTING A FIVE POINT THREE PERCENT EARNINGS INCREASE TO FORTY CENTS A SHARE ORDERS FOR THE COMPANY MAY EXCEED HIS PROJECTION OF A TWENTY FIVE PERCENT INCREASE FROM A YEAR EARLIER HE SAID MS. ALLEN SAID SHE SEES THE COMPANY EARNING BETWEEN THIRTY CENTS AND FORTY CENTS A SHARE FOR THE PERIOD AMONG SMALLER CAPITALIZATION COMPANIES D. R. HORTON IS EXPECTED TO SHOW A FIFTY PERCENT INCREASE IN ORDERS FOR THE RECENTLY ENDED FISCAL FIRST QUARTER MR. WILSON SAID AND A NINE POINT FIVE PERCENT INCREASE IN EARNINGS TO TWENTY THREE CENTS A SHARE MS. ALLEN SAID EARNINGS FOR HORTON ARE LIKELY TO BE FLAT WHILE OCTOBER AND NOVEMBER ORDERS WERE STRONG SHE SAID DELIVERIES WERE SLOWER THAN EXPECTED HORTON CITING STRONG SALES CONTRACTS IN OCTOBER AND NOVEMBER SAID IT WAS CONFIDENT IT COULD EXCEED ANALYSTS' ESTIMATES FOR FISCAL NINETEEN NINETY FOUR ENDING SEPTEMBER A ZACKS INVESTMENT RESEARCH POLL OF FIVE ANALYSTS PROJECTS YEAR END PROFIT OF ONE DOLLAR AND SEVEN CENTS A SHARE ON THE MANUFACTURED HOUSING SIDE MONTGOMERY'S MR. WILSON SEES CLAYTON HOMES INCORPORATED REPORTING A THIRTY THREE POINT THREE PERCENT INCREASE IN EARNINGS TO TWENTY THREE CENTS A SHARE FOR THE FISCAL SECOND QUARTER ENDED DECEMBER OAKWOOD HOMES INCORPORATED SHOULD REPORT TWENTY SEVEN CENTS A SHARE FOR THE FISCAL FIRST QUARTER ENDED DECEMBER A TWENTY NINE PERCENT INCREASE FROM THE YEAR EARLIER TWENTY ONE CENTS A SHARE HE SAID MS. ALLEN SEES THE COMPANY REPORTING EARNINGS BETWEEN TWENTY FOUR CENTS A SHARE AND TWENTY SEVEN CENTS A SHARE ONE REPORT SHOWS THE STRENGTH ANALYSTS EXPECTED HOVNANIAN ENTERPRISES INCORPORATED POSTED EARNINGS OF TWENTY ONE CENTS A SHARE FOR THE THIRD QUARTER ENDED NOVEMBER THIRTIETH COMPARED WITH NINE CENTS A SHARE A YEAR EARLIER THE MEAN ANALYSTS' ESTIMATE SURVEYED BY ZACKS WAS TWENTY NINE CENTS A SHARE MONEY MARKET MUTUAL FUND ASSETS JUMPED TEN POINT FIVE NINE BILLION DOLLARS TO FIVE HUNDRED NINETY EIGHT POINT FOUR OH BILLION DOLLARS FROM A REVISED FIVE HUNDRED EIGHTY SEVEN POINT EIGHT ONE BILLION DOLLARS FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF SIX HUNDRED FIFTY ONE RETAIL MONEY MARKET MUTUAL FUNDS INCREASED BY TWO POINT SIX FOUR BILLION DOLLARS TO FOUR HUNDRED POINT SIX FOUR BILLION DOLLARS THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF FOUR HUNDRED FOUR TAXABLE MONEY MARKET FUNDS ROSE BY ONE POINT OH NINE BILLION DOLLARS TO THREE HUNDRED NINE POINT ONE ONE BILLION DOLLARS ASSETS OF TWO HUNDRED FORTY SEVEN RETAIL TAX EXEMPT FUNDS INCREASED BY ONE POINT FIVE FIVE BILLION DOLLARS TO NINETY ONE POINT FIVE THREE BILLION DOLLARS ASSETS OF THE TWO HUNDRED SEVENTY NINE INSTITUTIONAL MONEY MARKET FUNDS ROSE BY SEVEN POINT NINE FOUR BILLION DOLLARS TO ONE HUNDRED NINETY SEVEN POINT SEVEN SIX BILLION DOLLARS AMONG INSTITUTIONAL FUNDS THE ASSETS OF TWO HUNDRED TWENTY FIVE TAXABLE MONEY MARKET FUNDS INCREASED BY SEVEN POINT NINE FOUR BILLION DOLLARS TO ONE HUNDRED SEVENTY FOUR POINT FIVE FIVE BILLION DOLLARS ASSETS OF FIFTY FOUR TAX EXEMPT FUNDS ROSE ONE POINT SEVEN MILLION DOLLARS TO TWENTY THREE POINT TWO ONE BILLION DOLLARS IN A VICTORY FOR LUXURY GOODS MAKERS THE EUROPEAN UNION'S HIGHEST COURT SAID CARTIER S. A. COULD LIMIT GUARANTEES ON ITS WATCHES TO THOSE PURCHASED FROM ITS APPROVED DEALERS THE RULING ALSO BOOSTS OTHER SECTORS SUCH AS AUTO MAKERS IN MAINTAINING THE INTEGRITY OF THEIR DEALERSHIP SYSTEMS IN THE E. U. FORMERLY THE EUROPEAN COMMUNITY THE EUROPEAN COURT OF JUSTICE SAID GUARANTEES ARE INTEGRAL TO A SELECTIVE DISTRIBUTION SYSTEM FOR LUXURY GOODS THUS IT DECIDED CARTIER DIDN'T VIOLATE E. U. COMPETITION LAW BY REFUSING TO HONOR GUARANTEES ON WATCHES SOLD BY A GERMAN RETAILER OUTSIDE THE DEALERSHIP NETWORK BECAUSE THE NETWORK ITSELF DIDN'T VIOLATE E. U. ANTI TRUST RULES RESIDENTIAL LAND PRICES IN JAPAN FELL IN NINETEEN NINETY THREE MARKING THE THIRD CONSECUTIVE ANNUAL DECLINE BUT THE PACE OF THE DROP IN CITIES SLOWED MISAWA HOMES COMPANY'S RESEARCH ARM SAID FOR EXAMPLE TOKYO AREA PRICES DECREASED SEVEN POINT FIVE PERCENT LAST DECEMBER FIRST COMPARED WITH A YEAR EARLIER FOURTEEN POINT FIVE PERCENT DROP PRICES STILL REMAIN WELL ABOVE LEVELS PRIOR TO A SPECULATIVE SURGE IN THE LATE NINETEEN EIGHTIES THE COMMERCIAL REAL ESTATE SUPPLY INCREASINGLY EXCEEDS DEMAND BUT RESIDENTIAL PRICES HAVE BENEFITED FROM LOW INTEREST RATES IN THE PAST TWO AND ONE HALF YEARS THAT ENCOURAGED PURCHASES ESPECIALLY BY FIRST TIME BUYERS ATTACKS ON FOREIGNERS IN GERMANY LAST YEAR DROPPED FORTY TWO PERCENT TO ONE THOUSAND THREE HUNDRED TWENTY TWO FROM A YEAR EARLIER THE GOVERNMENT SAID IN A PRELIMINARY REPORT OVERALL ONE THOUSAND EIGHT HUNDRED FOURTEEN VIOLENT ATTACKS SUCH AS BY NEO NAZIS WERE REGISTERED DOWN THIRTY PERCENT FROM NINETEEN NINETY TWO BUT UP TWENTY TWO PERCENT FROM NINETEEN NINETY ONE DEATHS FROM EXTREMIST VIOLENCE IN NINETEEN NINETY THREE DECLINED TO EIGHT FROM THE PREVIOUS YEAR'S SEVENTEEN THOUGH EXTREMISM HAS BEEN BLAMED ON ROOTLESS YOUTHS FROM THE FORMERLY COMMUNIST EAST WESTERN GERMAN STATES HAD THE MOST ATTACKS REPORTED IN THE WAVE OF VIOLENCE THAT BEGAN AFTER REUNIFICATION IN OCTOBER NINETEEN NINETY RUSSIA'S LIBERALIZATION OF PRICES HELPED RAISE THEM TO THIRTY PERCENT OF WORLD LEVELS AT THE END OF LAST YEAR FROM THIRTEEN PERCENT A YEAR EARLIER GOVERNMENT PRICE CONTROLS AND HEAVY SUBSIDIES HAD KEPT PRICES WELL BELOW WORLD MARKET LEVELS THE REPORT BY THE GOVERNMENT'S WORKING CENTER FOR ECONOMIC REFORM USED U. S. PRICES AS A BENCHMARK FOR WORLD LEVELS RUSSIA'S GRADUAL LIFTING OF MANY OF ITS CONTROLS HAS ALLOWED THE MARKET TO ADJUST THIS HAS WON PRAISE FROM MANY ECONOMISTS BUT ALSO HAS CONTRIBUTED TO WORRISOME INFLATION IN RUSSIA SINGAPORE'S GROSS DOMESTIC PRODUCT EXPANDED A PRELIMINARY NINE POINT EIGHT PERCENT LAST YEAR A BLISTERING PACE COMPARED WITH FIVE POINT EIGHT PERCENT GROWTH IN NINETEEN NINETY TWO THE CITY STATE'S ECONOMIC PERFORMANCE ONE OF THE BEST IN ASIA WAS DRIVEN BY FINANCIAL SERVICES AND MANUFACTURING SINGAPORE'S STOCK EXCHANGE RALLIED LAST YEAR THE FUTURES EXCHANGE POSTED RECORD VOLUMES AND THE FOREIGN EXCHANGE TRADING CENTER IS THE WORLD'S FOURTH LARGEST MANUFACTURING IS DOMINATED BY COMPUTER PERIPHERALS AND OIL PROCESSING ELECTRONICS OUTPUT GREW AT LEAST TWENTY FIVE PERCENT A QUARTER IN THE PAST YEAR THE CZECH GOVERNMENT DRAFTED LEGISLATION TO RETURN CONFISCATED JEWISH PROPERTY SUCH AS SYNAGOGUES AND CEMETERIES TO THE REPUBLIC'S JEWISH COMMUNITY WHICH HAS SHRUNK TO ABOUT THREE THOUSAND MEMBERS FROM ONE HUNDRED EIGHTEEN THOUSAND BEFORE WORLD WAR TWO JEWISH LEADERS HAVE COMPLAINED OF GOVERNMENT INDIFFERENCE TO THEIR DEMANDS FOR THE PROPERTY SEIZED BY NAZI GERMANY AND FORMER CZECHOSLOVAKIA'S POSTWAR COMMUNIST GOVERNMENTS NAZI SEIZURES BEGAN IN NINETEEN THIRTY NINE AND CZECH RESTITUTION LAWS COVER ONLY THE PERIOD FROM THE NINETEEN FORTY EIGHT TAKEOVER THE GOVERNMENT SAID IT DOESN'T CONSIDER THE BILL TO BE INTRODUCED IN PARLIAMENT AS RESTITUTION CHINA BLOCKED CONSTRUCTION OF GOLF COURSES HORSE RACING TRACKS AND OTHER LUXURY LEISURE PROJECTS THAT CATER TO INCREASINGLY CONSPICUOUS AFFLUENCE IN CHINA'S LATEST BID TO CURB FRENZIED DEVELOPMENT THE CHINA DAILY SAID THE QUOTE FOUR NO'S QUOTE CAMPAIGN DENIES PERMITS PLANNING LICENSES LAND ALLOCATION AND LENDING THIS INDICATED THAT A GOVERNMENT MORATORIUM LAST SPRING AND A FREEZE ON LUXURY PROJECT LENDING IN A FINANCIAL CLAMPDOWN LAST SUMMER HAVE FAILED TO COOL DEVELOPERS' ARDOR TO CASH IN ON NEWLY LAVISH LIFE STYLES SCORNED BY COMMUNIST HARD LINERS GOLF COURSES WERE ALLOWED IN THE NINETEEN EIGHTIES TO WOO FOREIGN INVESTORS BUT THE GOVERNMENT UNDERESTIMATED THEIR ALLURE AT LEAST TWENTY ARE UNDER CONSTRUCTION THE LUXURY PROPERTY BOOM ALSO HAS BEEN TARGETED IN CHINA'S ANTI CORRUPTION CAMPAIGN OFFICIALS SAID MANY PROJECTS HAVE BEEN FINANCED ILLEGALLY FROM LOCAL GOVERNMENT REVENUES CHINA CITING AN ACUTE SHORTAGE OF ARABLE LAND AND LIMITED FINANCIAL RESOURCES SAID THAT EVERY INCH OF LAND SHOULD GUARANTEE THE INTERESTS OF THE STATE JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA PLANS TO APPOINT HISAKO TAKAHASHI SIXTY SIX YEARS OLD TO THE SUPREME COURT NEXT MONTH MAKING THE FORMER LABOR MINISTRY OFFICIAL THE FIRST WOMAN EVER TO SERVE ON THE FIFTEEN MEMBER COURT A STRIKE BY BANGLADESH'S EIGHT THOUSAND GOVERNMENT DOCTORS CRIPPLED SUBSIDIZED MEDICAL SERVICES RELIED UPON BY MOST PEOPLE IN THE COUNTRY THE PHYSICIANS WANT INCREASES IN PAY AND HEALTH CARE SPENDING DISCOUNT BROKERAGE FIRM CHARLES SCHWAB CORPORATION REPORTED STRONG REVENUE GAINS BUT SLOWER NET INCOME GROWTH RAISED CONCERN AMONG SOME INVESTORS AND THE FIRM'S STOCK DECLINED FIVE POINT SIX PERCENT FOR THE FOURTH QUARTER SCHWAB'S NET INCOME ROSE THIRTEEN PERCENT TO TWENTY NINE MILLION DOLLARS OR FORTY EIGHT CENTS A SHARE COMPARED WITH NET INCOME OF TWENTY FIVE MILLION DOLLARS OR FORTY FOUR CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE INCREASED THIRTY THREE PERCENT TO TWO HUNDRED FIFTY EIGHT MILLION DOLLARS FROM ONE HUNDRED NINETY FOUR MILLION DOLLARS WHILE THE COMPANY'S EARNINGS CAME NEAR OR JUST BELOW EXPECTATIONS ANALYSTS ARE CONCERNED THAT RISING EXPENSES ARE SAPPING NET INCOME GROWTH NANCY ZAMBELL AN ANALYST WITH JW CHARLES SLASH CSG SAID SCHWAB HAD A FORTY TWO PERCENT INCREASE IN COMPENSATION AND A FORTY THREE PERCENT INCREASE IN OVERALL EXPENSES IN THE FOURTH QUARTER MORE WORRISOME SHE ADDED WAS SCHWAB'S DECLINE IN EARNINGS BEFORE INCOME TAXES WHICH DIPPED TO FORTY FIVE POINT TWO MILLION DOLLARS FROM FORTY FIVE POINT THREE MILLION DOLLARS IN THE YEAR EARLIER PERIOD QUOTE I'M NOT SURPRISED QUOTE MS. ZAMBELL SAID OF THE DECLINE IN SCHWAB'S STOCK THIS IS JUST A PICTURE OF WHAT'S GOING TO HAPPEN TO THE BROKERAGE HOUSES SHORTLY SINCE SCHWAB ISN'T AS DIVERSIFIED AS OTHER FIRMS THEY'RE MORE LIKELY TO GET HIT FIRST IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING SCHWAB FELL ONE DOLLAR AND SEVENTY FIVE CENTS OR FIVE POINT SIX PERCENT TO TWENTY NINE DOLLARS AND SEVENTY FIVE CENTS A SHARE FOR THE YEAR SCHWAB'S NET INCOME ROSE FORTY FIVE PERCENT TO ONE HUNDRED EIGHTEEN MILLION DOLLARS OR ONE DOLLAR AND NINETY EIGHT CENTS A SHARE COMPARED WITH EIGHTY ONE MILLION DOLLARS OR ONE DOLLAR AND THIRTY NINE CENTS A SHARE IN NINETEEN NINETY TWO REVENUE INCREASED TWENTY NINE PERCENT IN NINETEEN NINETY THREE TO NINE HUNDRED SIXTY FIVE MILLION DOLLARS FROM SEVEN HUNDRED FIFTY MILLION DOLLARS A YEAR EARLIER SCHWAB'S TRADING VOLUME DECLINED ELEVEN PERCENT IN DECEMBER COMPARED WITH AN UNUSUALLY STRONG PERFORMANCE IN NOVEMBER SCHWAB MADE AN AVERAGE THIRTY EIGHT POINT SIX THOUSAND TRADES A DAY IN DECEMBER DOWN FROM FORTY THREE POINT ONE THOUSAND TRADES A DAY IN NOVEMBER MEANWHILE COMBINED TRADING VOLUME ON THE BIG BOARD AND THE NASDAQ STOCK MARKET DECLINED ABOUT FIVE PERCENT FOR THE YEAR SCHWAB REPORTED A TWENTY NINE PERCENT JUMP IN DAILY TRADING VOLUME SCHWAB ALSO INCREASED ITS QUARTERLY CASH DIVIDEND TO SEVEN CENTS A SHARE FROM FIVE CENTS A SHARE PAYABLE FEBRUARY FIFTEENTH TO SHAREHOLDERS OF RECORD FEBRUARY FIRST CANADIAN PRIMARY STEEL PRODUCTION TOTALED TWO HUNDRED FORTY FOUR THOUSAND EIGHT HUNDRED TWELVE METRIC TONS IN THE WEEK ENDED SATURDAY AN ELEVEN PERCENT INCREASE FROM TWO HUNDRED TWENTY ONE THOUSAND FIVE HUNDRED FIFTY EIGHT TONS THE PREVIOUS WEEK AND A FIVE POINT THREE PERCENT INCREASE FROM TWO HUNDRED THIRTY TWO THOUSAND FOUR HUNDRED NINETY THREE TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO TWO THOUSAND TWO HUNDRED FOUR POINT SIX POUNDS TWO YEARS AGO ERWIN DUCHENSE FELT COMPELLED TO MAKE THE FINANCIAL SACRIFICE TO SEND HIS SON THEN AGE TWELVE TO A CATHOLIC SCHOOL IN SAN JUAN PUERTO RICO LIKE MANY OTHER LOW INCOME FAMILIES IN THE COMMONWEALTH THE DUCHENSES COULD NO LONGER RISK CHRISTIAN'S SAFETY BY SENDING HIM TO A VIOLENCE PRONE NEIGHBORHOOD PUBLIC SCHOOL EVEN IF THAT MEANT DRAINING THEIR PRECIOUS SAVINGS THIS SCHOOL YEAR HOWEVER CHRISTIAN'S FAMILY WAS SPARED AN EXPENSE THEY COULD ILL AFFORD AS CHRISTIAN SWITCHED TO A MUCH SAFER PUBLIC SCHOOL LAST YEAR THIRTEEN YEAR OLD OLGA RODRIGUEZ MORALES WAS ARBITRARILY ASSIGNED TO A NEIGHBORHOOD PUBLIC SCHOOL UNABLE TO ACCOMMODATE HER SPECIAL EDUCATION NEEDS BUT INSTEAD OF BEING FORCED TO ACCEPT THE BUREAUCRATIC EDICT OLGA'S MOTHER WAS ABLE TO ENROLL THE GIRL IN A DIFFERENT PUBLIC SCHOOL THAT HAS PRECISELY THE PROGRAM SHE NEEDS WHAT MADE OUTCOMES SUCH AS THESE POSSIBLE FOR HUNDREDS OF LOW INCOME PUERTO RICAN YOUNGSTERS WERE SCHOOL VOUCHERS FULFILLING A CAMPAIGN PLEDGE THAT HELPED PROPEL HIM TO OFFICE IN NINETEEN NINETY TWO PUERTO RICO GOVERNOR PEDRO ROSSELLO LAST SEPTEMBER SIGNED A LAW CREATING THE SECOND SCHOOL VOUCHER PROGRAM COVERING U. S. CITIZENS LIKE THE FIRST VOUCHER SYSTEM IN MILWAUKEE PUERTO RICO'S IS DESIGNED TO EXPAND EDUCATIONAL OPPORTUNITIES FOR LOW INCOME YOUNGSTERS BUT AS PART OF A MORE COMPREHENSIVE EFFORT THE PUERTO RICAN PROGRAM MAY PROVIDE A NATIONWIDE MODEL FOR U. S. EDUCATIONAL REFORM FUNDED WITH TEN MILLION DOLLARS ALLOCATED FROM PRIVATIZATION OF THE ISLAND'S TELEPHONE COMPANY THE PROGRAM MAKES ONE THOUSAND FIVE HUNDRED DOLLARS VOUCHERS AVAILABLE TO CHILDREN FROM FAMILIES WITH ANNUAL INCOMES OF LESS THAN EIGHTEEN THOUSAND DOLLARS WHO APPLY FOR THEM THIS YEAR THERE WERE ENOUGH VOUCHERS FOR ALL WHO APPLIED OVERWHELMINGLY FROM LOWER INCOME FAMILIES IN SUBSEQUENT YEARS THERE WILL BE A LOTTERY SYSTEM IF THE NUMBER OF APPLICANTS EXCEEDS THE NUMBER OF VOUCHERS AVAILABLE PUBLIC SCHOOL STUDENTS MAY APPLY THEIR VOUCHERS TOWARD PRIVATE SCHOOL TUITION THE MEDIAN COST OF WHICH IS LESS THAN ONE THOUSAND SEVEN HUNDRED DOLLARS BUT WHEREAS THE MILWAUKEE PROGRAM PROVIDES VOUCHERS ONLY TO STUDENTS TRANSFERRING FROM PUBLIC TO PRIVATE SCHOOLS PUERTO RICO MAKES ITS VOUCHERS TRANSPORTABLE BETWEEN PUBLIC SCHOOLS AND FROM PRIVATE TO PUBLIC SCHOOLS FOR STUDENTS USING THEM IN PUBLIC SCHOOLS THE VOUCHERS PROVIDE RESOURCES ON TOP OF THE FUNDS THE COMMONWEALTH ALREADY PROVIDES FOR EACH PUPIL THIS INNOVATION MARKS A MILESTONE IN EDUCATIONAL REFORM INSTEAD OF MERELY FUNNELING EXTRA MONEY TO SCHOOLS WITH HIGH CONCENTRATIONS OF LOW INCOME STUDENTS THE VOUCHER GIVES SUCH YOUNGSTERS GREATER MOBILITY WHILE MAKING THEM ECONOMICALLY ATTRACTIVE TO SCHOOLS NO LONGER ABLE TO IGNORE LOW INCOME KIDS WHO PREVIOUSLY HAD NOWHERE ELSE TO GO SCHOOLS NOW COMPETE FOR THEM AND THE EXTRA RESOURCES THEY BRING MOTIVATIONS VARY WIDELY FOR THE CHOICES MADE BY PARENTS PUBLIC SCHOOL PARENTS ARE ATTRACTED TO DIFFERENT PUBLIC SCHOOLS' SPECIALIZED EDUCATIONAL OFFERINGS OR SAFER ENVIRONMENTS SOME PARENTS ARE SENDING THEIR CHILDREN TO PRIVATE SCHOOLS BECAUSE THEY HAVE STRONGER ACADEMIC OR DISCIPLINARY STANDARDS OR PLACE AN EMPHASIS ON VALUES STILL OTHERS ARE LEAVING PRIVATE FOR PUBLIC SCHOOLS NOW THAT THE VOUCHER ENABLES THEM TO CHOOSE OUTSIDE THEIR NEIGHBORHOODS ALL SCHOOLS NOW MUST TAKE THESE MOTIVATIONS INTO ACCOUNT IF THEY WANT TO SURVIVE ALREADY SOME ARE MAKING NECESSARY CHANGES AT GAETAN ELEMENTARY SCHOOL IN SAN JUAN FOR INSTANCE THE TEACHER PARENT COUNCIL PLANS TO OFFER FREE EXTRACURRICULAR COURSES IN MUSIC AND ART AND HOPES TO RAISE FUNDS FOR COMPUTER CLASSES THE SCHOOL'S PRINCIPAL SAYS THAT IF THE SCHOOL ATTRACTS VOUCHER STUDENTS THE ADDED FUNDS WILL BE USED TO PURCHASE MORE BOOKS AND EQUIPMENT BUT COMPETITION CAN'T WORK IF PUBLIC SCHOOLS LACK FREEDOM TO RESPOND THE MAIN PROBLEM IN PUERTO RICO EVEN MORE THAN ELSEWHERE IS A HUGE BUREAUCRACY ONE ADMINISTRATOR FOR EVERY TWO TEACHERS WHICH SIPHONS OFF PRECIOUS EDUCATION RESOURCES AND IS MORE RESPONSIVE TO POLITICAL AND SPECIAL INTEREST PRESSURES THAN PARENTS' CONCERNS SO THE ROSSELLO ADMINISTRATION HAS MOVED TO DECENTRALIZE AND DEREGULATE PUBLIC SCHOOLS IT IS DOWNSIZING THE DEPARTMENT OF EDUCATION DISPATCHING BUREAUCRATS FROM THE MASSIVE TWELVE STORY CENTRAL HEADQUARTERS TO CLASSROOM TEACHING POSITIONS TRIMMING THE ADMINISTRATIVE FAT WILL SAVE ENOUGH MONEY TO FUND THE CHOICE PROGRAM IN FUTURE YEARS AND THIS YEAR IT HAS TRANSFORMED FORTY PUBLIC SCHOOLS INTO SELF GOVERNING QUOTE COMMUNITY QUOTE SCHOOLS AS A FIRST STEP IN WHAT EDUCATION SECRETARY JOSE ARSENIO TORRES CALLS QUOTE THE GRINDING PROCESS OF BECOMING FREE QUOTE MR. TORRES PLANS TO CONVERT TWO HUNDRED MORE SCHOOLS OVER THE NEXT YEAR THE NEW COMMUNITY SCHOOLS ARE SO ATTRACTIVE THAT IN THE FIRST YEAR OF THE CHOICE PROGRAM MORE VOUCHER STUDENTS TRANSFERRED FROM PRIVATE TO PUBLIC SCHOOLS THAN FROM PUBLIC TO PRIVATE OF ONE THOUSAND EIGHT HUNDRED NINE VOUCHERS AWARDED ONE THOUSAND ONE HUNDRED EIGHTY ONE WERE USED TO TRANSFER FROM ONE PUBLIC SCHOOL TO ANOTHER THREE HUNDRED SEVENTEEN WERE USED TO MOVE FROM PRIVATE TO PUBLIC SCHOOLS AND ONLY THREE HUNDRED ELEVEN TO SHIFT FROM PUBLIC TO PRIVATE SCHOOLS THESE STATISTICS DEBUNK A PRIME FALLACY PERPETRATED IN CALIFORNIA AND ELSEWHERE BY THE EDUCATION ESTABLISHMENT THAT VOUCHERS ARE THE DEATH KNELL FOR PUBLIC SCHOOLS ON THE CONTRARY PUBLIC SCHOOLS WILL SURVIVE AND THRIVE IF THEY OFFER A GOOD PRODUCT AND COMPETITION PROVIDES AN INCENTIVE TO DO JUST THAT PREDICTABLY ALTHOUGH PARENTS AND MANY TEACHERS ARE HAPPY WITH THE CHANGED ENVIRONMENT THE EDUCATION ESTABLISHMENT IS BITTERLY OPPOSED THE OPENING SALVO WAS A STRIKE BY THE TEACHER UNIONS PROTESTING THE ELIMINATION OF TENURE PROTECTIONS WITHIN COMMUNITY SCHOOLS WHICH ARE FREE TO HIRE AND FIRE THEIR OWN PERSONNEL THE STRIKE WAS SHUT DOWN BY LEGAL ACTION AFTER ONE DAY PARTICULARLY ANNOYING TO THE ANTIVOUCHER BLOCK IS THAT UNLIKE THE MILWAUKEE PROGRAM PUERTO RICO'S VOUCHER CAN BE USED IN RELIGIOUSLY AFFILIATED SCHOOLS A FEATURE THE PLAINTIFFS CONTEND RENDERS IT UNCONSTITUTIONAL A LAWSUIT FILED BY ONE OF THE TEACHER ASSOCIATIONS SUPPORTED BY THE AMERICAN CIVIL LIBERTIES UNION CLAIMS THAT THE PROGRAM INVOLVES THE COMMONWEALTH IN AN ENTERPRISE THAT PROMOTES RELIGIOUS ACTIVITY DOING VIOLENCE IN THIS WAY TO THE CONSTITUTIONAL SEPARATION OF CHURCH AND STATE WHILE THE LAWYERS BATTLE OVER THE PROGRAM'S FATE THE ROSSELLO ADMINISTRATION IS BUSILY APPLYING THE TONIC IT HOPES WILL IMPROVE A SCHOOL SYSTEM IN WHICH CURRENTLY LESS THAN HALF THE STUDENTS GRADUATE FOR A FEW THOUSAND LOW INCOME KIDS WHO BADLY NEED A DECENT EDUCATION THIS IS THE FIRST TONIC THAT'S NOT SNAKE OIL MR. BOLICK IS LITIGATION DIRECTOR FOR THE INSTITUTE FOR JUSTICE IN WASHINGTON D. C. WHICH REPRESENTS PARENTS DEFENDING THE PUERTO RICO SCHOOL CHOICE PROGRAM ALCAN ALUMINIUM LIMITED REACTING TO THE WORLD WIDE ALUMINUM GLUT SAID IT TEMPORARILY WILL CUT ABOUT NINE PERCENT OF ITS PRODUCTION CAPACITY REDUCING ANNUAL OUTPUT BY ONE HUNDRED FIFTY SIX THOUSAND METRIC TONS THE MOVE COMES AS U. S. AND WESTERN EUROPEAN GOVERNMENTS CONTINUE TO PRESS RUSSIA TO CURB ALUMINUM EXPORTS THE LATEST ROUND OF MULTILATERAL TALKS IS TO TAKE PLACE IN BRUSSELS NEXT WEEK ALCAN'S MOVE FOLLOWS CUTBACKS DURING THE PAST SEVERAL MONTHS BY OTHER COMPANIES INCLUDING ALUMINUM COMPANY OF AMERICA AND REYNOLDS METALS COMPANY BUT GLOBAL INVENTORIES HAVE CONTINUED TO MOUNT AS PRODUCERS IN THE FORMER SOVIET UNION FLOOD WORLD MARKETS THE SITUATION QUOTE HAS REACHED CRISIS LEVELS QUOTE AN ALCAN SPOKESMAN SAID IT'S TIME FOR US TO ACT ALCAN HAD RESISTED CUTTING CAPACITY SINCE NINETEEN NINETY TWO THE MONTREAL BASED COMPANY CLOSED ONE HUNDRED TWO THOUSAND METRIC TONS ONE HUNDRED TWELVE THOUSAND TWO HUNDRED SHORT TONS OF CAPACITY IN NINETEEN NINETY ONE AND NINETEEN NINETY TWO TOGETHER WITH THOSE CUTBACKS ALCAN'S LATEST REDUCTION IN PRIMARY ALUMINUM OUTPUT WILL LOWER ITS OPERATING RATE TO EIGHTY FIVE PERCENT OF CAPACITY CHARLES BRADFORD AN ANALYST WITH U. B. S. SECURITIES IN NEW YORK SAID ALCAN'S MOVE SEEMS LIKE AN ACT OF GOOD FAITH TOWARD RUSSIA BUT HE QUESTIONED THE TIMING NOTING THAT ALCAN APPEARS TO BE SHOWING ITS HAND BEFORE THE RUSSIANS MAKE COMMITMENTS AMY P. GASSMAN OF GOLDMAN SACHS SAID IT COULD ALSO BE ARGUED THAT BECAUSE THE RUSSIANS DON'T WANT TO APPEAR TO BE MAKING ALL THE CUTBACKS GIVEN THE SOCIAL IMPLICATIONS OF SUCH MEASURES THE ALCAN DECISION WILL BOLSTER CHANCES FOR AN AGREEMENT IN BRUSSELS BUT SHE WARNED THAT AN ACCORD COULD PROVE VERY DIFFICULT TO IMPLEMENT GIVEN THE NEED FOR HARD CURRENCY IN RUSSIA AN ALCAN SPOKESMAN SAID THE COMPANY'S DECISION ISN'T LINKED TO THE BRUSSELS TALKS OF ALCAN'S PRODUCTION CUTS SIXTY THOUSAND METRIC TONS WILL COME FROM ITS PLANT IN SEBREE KENTUCKY SEVENTY THOUSAND FROM CANADIAN PLANTS AND THE REST FROM U. K. AND BRAZILIAN OPERATIONS THE MEASURES SHOULD BE IMPLEMENTED WITHIN TWO MONTHS ALCAN SAID AS MANY AS THREE HUNDRED EMPLOYEES ARE EXPECTED TO BE LAID OFF ALCAN SAID COSTS ASSOCIATED WITH THE CLOSURES PROBABLY WILL BE REFLECTED IN THE COMPANY'S FIRST QUARTER RESULTS IT DIDN'T ESTIMATE THE AMOUNT OF SUCH COSTS FOR THE NINE MONTHS ENDED SEPTEMBER THIRTIETH ALCAN HAD A LOSS OF SIXTY EIGHT MILLION DOLLARS OR THIRTY SEVEN CENTS A SHARE COMPARED WITH A LOSS OF FIFTY SIX MILLION DOLLARS OR THIRTY ONE CENTS A SHARE A YEAR EARLIER ALCAN SHARES ROSE TWELVE POINT FIVE CENTS APIECE TO CLOSED AT TWENTY TWO DOLLARS AND TWENTY FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CAMDEN PROPERTY TRUST SAID THE ESTIMATED COST FOR ACQUIRING LAND AND DEVELOPING AN APARTMENT COMPLEX IN AUSTIN TEXAS IS SEVENTEEN POINT EIGHT MILLION DOLLARS AN ITEM WEDNESDAY INCORRECTLY STATED THAT THE COST OF THE LAND ALONE WAS SEVENTEEN POINT EIGHT MILLION DOLLARS PRUDENTIAL SECURITIES INCORPORATED QUIETLY AGREED TO PAY A FORMER STAR PARTNERSHIP BROKER TWO HUNDRED FIFTY THOUSAND DOLLARS TO SETTLE AN ARBITRATION CASE HE FILED AGAINST THE FIRM PEOPLE FAMILIAR WITH THE CASE SAID THE SETTLEMENT REACHED WITH WILLIAM WEBB WHO SOLD MORE THAN TWENTY FIVE MILLION DOLLARS OF ENERGY PARTNERSHIPS IN HIS SIX YEAR CAREER AT THE FIRM CAME ON THE EVE OF A HEARING BEFORE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN TAMPA FLORIDA THE PEOPLE SAID MR. WEBB HAD ACCUSED PRUDENTIAL OF AMONG OTHER THINGS PRESSURING BROKERS TO PEDDLE THE PARTNERSHIPS WITHOUT ADEQUATELY DISCLOSING THE RISKS AND WRONGFUL TERMINATION THE ACCORD WHICH CONTAINS A CONFIDENTIALITY CLAUSE IS BELIEVED TO BE THE LARGEST AMOUNT PAID TO A FORMER BROKER BY PRUDENTIAL THE NATION'S FOURTH LARGEST SECURITIES FIRM THE CONFIDENTIALITY PROVISION MEANS MR. WEBB CAN'T PUBLICLY DISCUSS THE CASE BUT THE CLAUSE DOESN'T PRECLUDE MR. WEBB FROM BEING SUBPOENAED BY PROSECUTORS WHO ARE SEEKING EVIDENCE OF WRONGDOING BY SENIOR PRUDENTIAL SECURITIES MANAGEMENT FROM FORMER BROKERS WHO HAVE ACCUSED THE FIRM OF MISLEADING INVESTORS THE WEBB CASE WAS AMONG THE MOST CLOSELY WATCHED IN A HANDFUL OF CASES FORMER PRUDENTIAL BROKERS HAVE FILED AGAINST THE FIRM SECURITIES LAWYERS SAID QUOTE PRUDENTIAL HAD BEEN SAYING THAT THE WEBB CASE WOULD NOT BE SETTLED THAT IT WOULD BE THE CASE WHERE PRUDENTIAL WOULD SET AN EXAMPLE AND ESTABLISH THAT BROKERS DO NOT HAVE VALID CLAIMS AGAINST THE FIRM QUOTE ASSERTED THOMAS R. GRADY A NAPLES FLORIDA LAWYER REPRESENTING A FORMER BROKER AND INVESTORS WITH CLAIMS AGAINST PRUDENTIAL THAT'S NOT THE WAY IT WORKED OUT MR. WEBB'S SAGA PROVIDES A WINDOW INTO HOW SOME PRUDENTIAL BROKERS PEDDLED LIMITED PARTNERSHIPS IN THE NINETEEN EIGHTIES MR. WEBB ASSERTS IN PAPERS FILED WITH ARBITRATORS THAT THE FIRM AGGRESSIVELY PRODDED HIM TO SELL PARTNERSHIPS TO SAFETY CONSCIOUS INVESTORS OFTEN PROMISING ANNUAL RETURNS OF FIFTEEN PERCENT OR MORE AND TO RELY SOLELY ON SALES MATERIALS PROVIDED BY THE FIRM NOT THE TELL ALL DOCUMENT KNOWN AS THE PROSPECTUS IN AN UNRELATED ARBITRATION CASE FILED BY PARTNERSHIP INVESTORS AGAINST PRUDENTIAL MR. WEBB WAS ASKED IF HE RELIED ON THE PROSPECTUS TO SELL PARTNERSHIPS WELL I WOULD DISCLOSE IT AND HAND IT TO THE CLIENT NORMALLY AFTER THEY LEFT HE TESTIFIED IN TERMS OF GOING OVER THE PROSPECTUS IN A DETAILED FASHION NO I DID NOT DO THAT THE WEBB CASE COULD HAVE GOTTEN MESSY FOR THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT ON THE ONE HAND MR. WEBB WAS ONE OF THE FIRST WHISTLE BLOWERS IN THE PRUDENTIAL PARTNERSHIP MATTER IN HIS CASE AGAINST THE FIRM HE ACCUSED PRUDENTIAL OF MISLEADING BROKERS INTO SELLING THE PARTNERSHIPS AND HIS TESTIMONY COULD POTENTIALLY HAVE BEEN DAMAGING FOR PRUDENTIAL MR. WEBB LEFT PRUDENTIAL IN NOVEMBER NINETEEN NINETY HE HAS TESTIFIED IN OTHER CASES THAT PRUDENTIAL SAYS IT FIRED HIM FOR BUYING STOCK IN AN OUTSIDE ACCOUNT MAINTAINED AT A SECURITIES TRADING UNIT OF BARNETT BANK IN THIS TESTIMONY MR. WEBB SAYS HE EARLIER HAD TOLD PRUDENTIAL ABOUT THE ACCOUNT ON THE OTHER HAND MR. WEBB WAS VULNERABLE TO ATTACK BY HIS FORMER FIRM INDEED HE HAS CONCEDED IN SEPARATE ARBITRATION CASES THAT INVESTORS HAVE FILED MORE THAN ONE HUNDRED LEGAL CLAIMS INVOLVING PARTNERSHIPS THAT HE SOLD IN SOME CASES INVESTORS HAVE ACCUSED MR. WEBB OF CONCENTRATING THE BULK OF THEIR PORTFOLIOS IN HIGH RISK PARTNERSHIPS AND PENNY STOCKS PRUDENTIAL DECLINED TO COMMENT ON THE SETTLEMENT BOTH MR. WEBB WHO NOW IS A BROKER FOR ADVEST INCORPORATED AND MICHAEL CRIDEN HIS ATTORNEY IN MIAMI DECLINED TO COMMENT ON ANY ASPECT OF THE CASE CITING THE CONFIDENTIALITY CLAUSE PRUDENTIAL HASN'T YET PAID THE MONEY FROM THE SETTLEMENT WHICH WAS REACHED LATE LAST WEEK THE PEOPLE FAMILIAR WITH THE CASE SAID IN CASES IN WHICH HE HAS TESTIFIED MR. WEBB PAINTED A PICTURE OF A FIRM DRIVEN TO PUSH BROKERS TO AGGRESSIVELY SELL THE PARTNERSHIPS IN AN UNRELATED ARBITRATION CASE MR. WEBB TESTIFIED THAT THE FIRM URGED BROKERS TO PLAY OFF INVESTORS' FEAR OF STOCKS FOLLOWING THE NINETEEN EIGHTY SEVEN STOCK MARKET CRASH AFTER THE CRASH IN EIGHTY SEVEN THE PARTNERSHIP DEPARTMENT USED THAT METHOD AS A SELLING TECHNIQUE QUITE A BIT YOU KNOW IN TERMS OF LIMITED PARTNERSHIPS MR. WEBB TESTIFIED IN THAT EARLIER CASE IF YOU WERE IN THE LIMITED PARTNERSHIPS AS OPPOSED TO THE MARKET YOU WOULDN'T HAVE SEEN A LOSS IN VALUE LIKE YOU HAD IN THE STOCK MARKET THIS IS NOT THE FIRST LEGAL CLAIM FILED BY FORMER PRUDENTIAL BROKERS THAT THE SECURITIES FIRM HAS SETTLED PRUDENTIAL LAST YEAR SETTLED CASES WITH FOUR FORMER BROKERS PAYING A LAW FIRM REPRESENTING THE BROKERS A TOTAL OF SEVEN HUNDRED THOUSAND DOLLARS PEOPLE FAMILIAR WITH THE CASE SAID THOSE BROKERS HAD CONTENDED THAT PRUDENTIAL DELIBERATELY LAUNCHED A SALES CAMPAIGN TO DECEIVE INVESTORS INTO BUYING THE PARTNERSHIPS SEPARATELY SEVERAL CURRENT AND FORMER PRUDENTIAL EMPLOYEES WILL BEGIN RECEIVING SUBPOENAS IN THE NEXT FEW DAYS IN A FEDERAL INVESTIGATION OF THE FIRM'S PARTNERSHIP PRACTICES ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE SUBPOENAS WHICH WERE EXPECTED COME AS THE U. S. ATTORNEY'S OFFICE IN MANHATTAN AND THE SECURITIES AND EXCHANGE COMMISSION INVESTIGATE WHAT ROLE CURRENT AND FORMER PRUDENTIAL EMPLOYEES PLAYED IN THE FIRM'S PARTNERSHIP PRACTICES SHARPLY LOWER BOND PRICES AND PROFIT TAKING TRIMMED MORE OF THE GAINS MADE BY STOCKS THIS YEAR IN FAIRLY QUIET TRADING YESTERDAY'S SESSION WAS THE THIRD STRAIGHT DAY OF GIVEBACKS AFTER EQUITIES RALLIED FOR SIX CONSECUTIVE SESSIONS TO START OFF NINETEEN NINETY FOUR CRUISING TO RECORDS FOUR TIMES MEANWHILE ON THE NASDAQ STOCK MARKET ITS COMPOSITE INDEX REVERSED MILD WEAKNESS AND CLIMBED ZERO POINT NINE FOUR POINT TO SEVEN HUNDRED EIGHTY SEVEN POINT EIGHT ONE BREAKING THROUGH ITS PREVIOUS RECORD OF SEVEN HUNDRED EIGHTY SEVEN POINT FOUR TWO SET OCTOBER FIFTEENTH BIG BOARD DECLINERS LED ADVANCERS ONE THOUSAND ONE HUNDRED FORTY TWO TO NINE HUNDRED THIRTY SIX VOLUME WAS A SLIM TWO HUNDRED SEVENTY SEVEN MILLION EIGHT HUNDRED EIGHTY SIX THOUSAND SHARES COMPARED WITH THREE HUNDRED NINE MILLION EIGHT HUNDRED NINETY THREE THOUSAND WEDNESDAY JOHN J. SCHRAFF AN EQUITY TRADER AT DAIWA SECURITIES AMERICA SAID INVESTORS WERE THROWN A BIT BY THE BOND MARKET DECLINES AS QUOTE THEY TRIED TO FIGURE OUT WHICH WAY THEY'RE GOING TO GO FROM HERE QUOTE BUT HE SAID BUYERS ARE BEGINNING TO TRICKLE BACK INTO THE MARKET AFTER DISAPPEARING IN THE PREVIOUS THREE DAYS LIKEWISE JOSEPH J. MCALINDEN DIRECTOR OF RESEARCH AT DILLON READ AND COMPANY SAID HE THINKS THE PROFIT TAKING HAS JUST ABOUT RUN ITS COURSE AND THE DOW JONES INDUSTRIALS WILL REACH A RECORD AGAIN BEFORE THE END OF THE MONTH MR. MCALINDEN ADDED THAT THE STEADY STREAM OF GOOD ECONOMIC NEWS AND THE FOCUS ON FOURTH QUARTER CORPORATE EARNINGS REPORTS WHICH ARE EXPECTED TO BE STRONG WILL CATAPULT TWO GROUPS INTO FAVOR OVER THE COMING WEEKS CYCLICAL STOCKS OF ALL CAPITALIZATION LEVELS AND SMALL COMPANY ISSUES THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX CONTINUED ITS STRING OF HIGHER MOVES RISING ZERO POINT ONE NINE POINT TO FOUR HUNDRED EIGHTY POINT OH SIX THE DOW JONES TRANSPORTATION AVERAGE ROSE TO A HIGH CLIMBING TWO POINT FIVE SEVEN TO ONE THOUSAND EIGHT HUNDRED TWENTY FOUR POINT OH EIGHT A. M. R. CORPORATION INCREASED ONE AND THREE QUARTERS TO SEVENTY ONE AND THREE QUARTERS DELTA AIR LINES GAINED ONE TO FIFTY SEVEN AND THREE EIGHTHS AND ROADWAY SERVICES INCORPORATED TACKED ON ONE TO SIXTY THREE AND ONE HALF ON NASDAQ THE BIG THREE U. S. AUTO MAKERS GOT A BOOST FROM NEWS THAT ANALYSTS FORECAST FOURTH QUARTER PROFITS FOR THE TRIO FORD MOTOR INCHED UP THREE EIGHTHS TO SIXTY SEVEN AND SEVEN EIGHTHS GENERAL MOTORS ADDED ONE TO SIXTY AND ONE QUARTER AND CHRYSLER WHICH IS EXPECTED TO LEAD THE PACK IMPROVED ONE TO SIXTY BANK STOCKS WERE ALSO IN THE LIMELIGHT CITICORP TOPPED THE BIG BOARD MOST ACTIVES LIST WITH ABOUT FIVE POINT SIX MILLION SHARES TRADED UP FROM AVERAGE DAILY VOLUME OF ONE POINT EIGHT MILLION THE STOCK CLIMBED TWO AND ONE EIGHTH TO FORTY AND THREE QUARTERS FOLLOWING A POSITIVE FOURTH QUARTER AND FULL YEAR EARNINGS OUTLOOK AS WELL AS RESTRUCTURING NEWS IN ADDITION CITICORP SAID IT AGREED IN PRINCIPLE TO SELL ITS QUOTRON MARKET DATA SERVICES BUSINESS TO REUTERS HOLDINGS INCORPORATED WHICH ADDED SEVEN EIGHTHS TO EIGHTY THREE J. P. MORGAN AND COMPANY GAINED THREE QUARTERS TO SEVENTY AND THREE EIGHTHS THE COMPANY SAID FOURTH QUARTER NET INCOME OF ONE DOLLAR AND NINETY TWO CENTS A SHARE SURPASSED ANALYSTS' EXPECTATIONS OF ONE DOLLAR AND SEVENTY CENTS AND THE ONE DOLLAR AND TEN CENTS EARNED IN THE YEAR EARLIER PERIOD MELLON BANK AND BALTIMORE BANCORP ROSE ON SPECULATION THAT MELLON IS CONSIDERING BUYING THE BANK HOLDING COMPANY MELLON DECLINED TO COMMENT THOUGH PEOPLE CLOSE TO MELLON SAID THEY DON'T KNOW WHERE THE RUMORS ARE COMING FROM LATE YESTERDAY BALTIMORE BANCORP SAID IT IS IN PRELIMINARY DISCUSSIONS WITH SEVERAL MAJOR BANK HOLDING COMPANIES REGARDING A POSSIBLE SALE OF THE COMPANY BUT SAID MELLON ISN'T ONE OF THOSE COMPANIES GREEN TREE FINANCIAL JUMPED TWO TO FIFTY FOUR AND ONE QUARTER AFTER A RATING UPGRADE FROM ALEXANDER BROWN AND SONS INCORPORATED TO STRONG BUY FROM BUY THE BROKERAGE FIRM ALSO RAISED ITS NINETEEN NINETY FOUR EARNINGS ESTIMATE TO FOUR DOLLARS AND FIFTY FIVE CENTS A SHARE FROM FOUR DOLLARS AND THIRTY CENTS BEAR STEARNS COMPANIES GAINED THREE QUARTERS TO TWENTY THREE AND SEVEN EIGHTHS THE FINANCIAL SERVICES FIRM SAID SECOND QUARTER EARNINGS ROSE TO ONE DOLLAR AND FIVE CENTS A SHARE FROM FIFTY TWO CENTS A YEAR EARLIER WALL STREET HAD EXPECTED NET INCOME TO COME IN AT SEVENTY EIGHT CENTS HEALTH CARE PROPERTY INVESTORS ADDED ONE AND ONE HALF TO TWENTY EIGHT AND THREE QUARTERS THE COMPANY SAID FOURTH QUARTER NET INCOME INCREASED TO FORTY FIVE CENTS A SHARE FROM THIRTY FIVE CENTS IN THE YEAR EARLIER QUARTER AMONG LOSERS QUAKER OATS SAGGED THREE AND THREE EIGHTHS TO SIXTY SIX AFTER PROJECTING A FIFTEEN PERCENT TO TWENTY PERCENT DECLINE IN FISCAL SECOND QUARTER EARNINGS FROM THE SEVENTY SEVEN CENTS A SHARE IN THE YEAR EARLIER PERIOD ALSO GOLDMAN SACHS DOWNGRADED QUAKER TO MARKET PERFORMER FROM MODERATE OUTPERFORMER CITING THE DISAPPOINTING FORECAST NOMI GHEZ AN ANALYST AT THE BROKERAGE FIRM CUT HER FISCAL NINETEEN NINETY FOUR AND NINETEEN NINETY FIVE EARNINGS ESTIMATES ON NASDAQ ORACLE CORPORATION SLID TWO AND THREE QUARTERS TO THIRTY TWO AND ONE QUARTER REPORTEDLY AMID PROFIT TAKING THE REDUCTION OF INVESTMENT RATINGS AND EARNINGS ESTIMATES AS WELL AS POSSIBLE INVESTOR DISAPPOINTMENT WITH THE REVENUE STREAM FROM THE COMPANY'S MULTIMEDIA PACT WITH BELL ATLANTIC CORPORATION WHICH FELL ONE QUARTER TO FIFTY SIX AND ONE QUARTER ON THE BIG BOARD ORACLE WAS THE MOST ACTIVE NASDAQ STOCK WITH VOLUME OF TEN POINT FOUR MILLION SHARES UP FROM AVERAGE DAILY TURNOVER OF THREE POINT ONE MILLION DO AMERICANS HAVE AN INALIENABLE RIGHT OF ACCESS TO FANCY NEW TELEPHONE TEXT AND VIDEO SERVICES THAT DON'T YET EXIST THE QUESTION ISN'T MERELY ACADEMIC HOW IT IS ANSWERED WILL HELP SHAPE THE GROUND RULES FOR THE ADMINISTRATION AND CONGRESS AS THEY STRIVE TO ELIMINATE BARRIERS TO COMPETITION AMONG CABLE TELEVISION AND TELEPHONE COMPANIES BATTLE LINES ARE ALREADY STARTING TO FORM ON ONE SIDE IS AN EMERGING COALITION OF SOCIAL JUSTICE GROUPS RURAL INTERESTS AND SOME CLINTON ADMINISTRATION ADVISERS WHO WARN OF THE CREATION OF AN QUOTE INFORMATION UNDERCLASS QUOTE IF POOR OR RURAL RESIDENTS CAN'T AFFORD OR CAN'T HOOK UP TO SERVICES SUCH AS ELECTRONIC JOB LISTINGS AND VIDEO HEALTH HOTLINES SOME SUCH AS THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE ARE ORGANIZING LOBBYING EFFORTS TO ENSURE THAT THE NOTION OF UNIVERSAL TELEPHONE SERVICE IS EXTENDED TO THE DIGITAL TWO WAY COMMUNICATIONS OF THE FUTURE WE CANNOT TOLERATE NOR IN THE LONG RUN CAN THIS NATION AFFORD A SOCIETY IN WHICH SOME CHILDREN BECOME FULLY EDUCATED AND OTHERS DO NOT IN WHICH SOME ADULTS HAVE ACCESS TO TRAINING AND LIFETIME EDUCATION AND OTHERS DO NOT VICE PRESIDENT AL GORE TOLD A TELECOMMUNICATIONS CONFERENCE TUESDAY NOR CAN WE PERMIT GEOGRAPHIC LOCATION TO DETERMINE WHETHER THE INFORMATION HIGHWAY PASSES BY YOUR DOOR BUT OTHERS SAY THERE'S NO GUARANTEE THE SERVICES WILL RISE BEYOND MULTIPLE CHOICE MOVIES HOME SHOPPING AND GLORIFIED VIDEO GAMES AND THAT ASSURING ACCESS WOULD AMOUNT TO A HUGE NEW ENTITLEMENT PROGRAM BASED ON A SHAKY HYPOTHESIS THIS SPECTER OF HAVES AND HAVE NOTS I THINK IS MORE A SPECTER TODAY THAN A REAL DANGER SAYS PETER HUBER SENIOR FELLOW AT THE MANHATTAN INSTITUTE IT SEEMS TO ME BEFORE ONE SOLVES THE PROBLEM ONE SHOULD MAKE SURE THE PROBLEM IS THERE THE BEST WAY TO ASSURE ACCESS OTHERS SAY ISN'T THROUGH GOVERNMENT MANDATES BUT THROUGH THE LOWER PRICES THAT WILL RESULT FROM INCREASED COMPETITION IT IS A THORNY ISSUE IT IS A DIFFICULT ISSUE BUT IT IS A KEY ISSUE AS WE MOVE INTO THE NEW ERA SAYS ASSISTANT COMMERCE SECRETARY LARRY IRVING MR. GORE WAS ASKED ABOUT IT DURING AN ON LINE DISCUSSION WITH MEMBERS OF THE COMPUSERVE INFORMATION SERVICE SOME STATES ARE POINTING TO UNIVERSAL SERVICE AS A REASON TO MAINTAIN LOCAL TELEPHONE MONOPOLIES INNER CITY RESIDENTS ARE EXPECTED TO ADDRESS THE SUBJECT DURING A HEARING WITH MR. IRVING IN LOS ANGELES NEXT THURSDAY THE ADMINISTRATION IS CURRENTLY TRYING TO COME UP WITH A PLAN FOR ALL CARRIERS INCLUDING LONG DISTANCE AND CABLE COMPANIES TO CONTRIBUTE TO UNIVERSAL SERVICE BUT MR. GORE DIDN'T SAY HOW THE ADMINISTRATION WOULD STRUCTURE A SUBSIDY PLAN OR HOW POLICY MAKERS SHOULD DECIDE WHETHER A SERVICE IS WORTHY OF SUBSIDY THOSE DETAILS WOULD LARGELY BE LEFT TO THE STATES AND THE FEDERAL COMMUNICATIONS COMMISSION FOR ADVOCATES OF GOVERNMENT GUARANTEED UNIVERSAL ACCESS TO THE INFORMATION SERVICES OF THE FUTURE THE CURRENT APPROACH TO TELEPHONE SERVICE PROVIDES A ROUGH ANALOGY A HODGEPODGE OF SUBSIDIES SOME OPEN AND SOME HIDDEN KEEPS RURAL AND RESIDENTIAL CUSTOMERS FROM PAYING HIGH TELEPHONE BILLS FOR EXAMPLE FEDERAL SURCHARGES ON LONG DISTANCE COMPANIES HELP FUND A POOL FOR PHONE COMPANIES IN HIGH COST RURAL AREAS THUS LOWERING THE AVERAGE RURAL BILL BY MORE THAN THREE HUNDRED DOLLARS A YEAR BUT RAISING THE AVERAGE URBAN BILL BY ALMOST EIGHTY DOLLARS A YEAR ACCORDING TO ONE INDUSTRY STUDY LOCAL PHONE COMPANIES ALSO CLAIM THEY SHIFT TWENTY BILLION DOLLARS A YEAR TO REDUCE RESIDENTIAL RATES AT THE EXPENSE OF HIGH VOLUME BUSINESS CUSTOMERS THOUGH MANY PEOPLE DISPUTE THE FIGURE THEY ACKNOWLEDGE THAT RESIDENTIAL RATES ARE ARTIFICIALLY LOW BUT WITH FREER COMPETITION THE SOURCES OF THOSE TELEPHONE SUBSIDIES ARE STARTING TO DEFECT IN SUCH BIG CITIES AS NEW YORK WIRELESS COMPANIES AND CABLE OPERATORS ARE POACHING LUCRATIVE BUSINESS USERS AND LONG DISTANCE CARRIERS SUCH AS M. C. I. COMMUNICATIONS CORPORATION ARE STRIVING TO SET UP THEIR OWN LOCAL PHONE NETWORKS FIGURING OUT HOW TO SUBSIDIZE RURAL AND INNER CITY RESIDENTS WITHOUT CREATING A CUMBERSOME NEW ENTITLEMENT SYSTEM WON'T BE EASY PARTICULARLY IF REGULATORS ADD FANCIER TECHNOLOGIES TO THE LIST OF GUARANTEED SERVICES ALREADY MANY STATES REQUIRE TOUCH TONE CAPABILITY FOR BASIC PHONE SERVICE AND SOME ARE CONSIDERING REQUIRING LINES CLEAR ENOUGH TO CARRY ELECTRONIC INFORMATION SOME ADMINISTRATION ADVISERS INCLUDING COLUMBIA UNIVERSITY PROFESSOR ELI NOAM HAVE ARGUED FOR A SORT OF VALUE ADDED TAX ON TELECOMMUNICATIONS SUPPLIERS WITH THE FUNDS DISTRIBUTED TO COMPANIES THAT SIGN UP SUBSIDIZED CUSTOMERS OTHERS INCLUDING AMERICAN TELEPHONE AND TELEGRAPH COMPANY FAVOR PAYING THE SUBSIDY DIRECTLY TO CONSUMERS PERHAPS THROUGH QUOTE TELEPHONE STAMPS QUOTE SO THAT BENEFITS ONLY GO TO POOR PEOPLE AND NOT SAY WEALTHY HORSE FARM OWNERS IN QUOTE RURAL QUOTE AREAS HOWEVER CONVINCING ESTABLISHED COMPANIES TO FUND A SUBSIDY PROGRAM WON'T BE EASY AND MR. GORE HAS ALREADY SAID NEW COMMUNICATIONS COMPANIES WOULD BEAR A SMALLER SHARE OF THE BURDEN ALSO DECIDING WHETHER A SERVICE IS WORTHY OF SUBSIDY IS TRICKY ALONG WITH THE EDUCATIONAL AND HEALTH PROGRAMS THAT WILL PRESUMABLY BE CARRIED ON THE TWO WAY VIDEO SERVICES OF TOMORROW THERE IS SURE TO BE MUCH OF DUBIOUS SOCIAL VALUE FOR EXAMPLE CABLE T. V. GIANT TELE COMMUNICATIONS INCORPORATED RECENTLY SHOWED A TRADE SHOW A VIDEO OF ITS VISION OF THE MULTIMEDIA FUTURE FEATURING TWO BOYS IN SEPARATE LIVING ROOMS HOOKING UP FOR A GAME OF SEWER SHARK I DON'T WANT TO BE FORCED TO PAY FOR THE INTERACTIVE VIDEO GAMES OR MOVIES ON DEMAND OF MY NEIGHBOR DOWN THE STREET SAYS BRADLEY STILLMAN LEGISLATIVE COUNSEL OF THE CONSUMER FEDERATION OF AMERICA HE SAYS TELEPHONE COMPANIES PROMOTE A BROAD DEFINITION OF UNIVERSAL SERVICE BECAUSE IT ALLOWS THEM TO LAY MILES OF FIBER OPTIC WIRE AT CUSTOMERS' EXPENSE HIS GROUP HAS THE SUPPORT OF THE POWERFUL AMERICAN ASSOCIATION OF RETIRED PERSONS WHICH WANTS TO ENSURE THAT RATES FOR BASIC TELEPHONE SERVICE AREN'T RAISED TO SUBSIDIZE MORE SPECULATIVE SERVICES BUT BARBARA O'CONNOR DIRECTOR OF ALLIANCE FOR PUBLIC TECHNOLOGY A GROUP THAT BACKS A STRONG UNIVERSAL SERVICE POLICY SAYS COURTS WON'T LET LOCAL GOVERNMENTS LAUNCH SERVICES SUCH AS ELECTRONIC VOTING VEHICLE REGISTRATION AND LIBRARIES UNLESS THE SERVICES CAN REACH A BROAD SWATH OF THE POPULATION ONE COMPROMISE COULD BE USING PUBLIC INSTITUTIONS AS A WAY TO SPREAD DIGITAL SERVICES INTO MOST NEIGHBORHOODS MR. GORE IS ASKING COMPANIES TO WIRE ALL SCHOOLS LIBRARIES HOSPITALS AND CLINICS BY THE YEAR TWO THOUSAND AND DURING LAST NIGHT'S COMPUSERVE SESSION HE SAID THE COMPANIES SHOULD PROVIDE FREE ACCESS TO EVERY CLASSROOM IN THEIR SERVICE AREA ON WEDNESDAY MORNING MR. GORE WATCHED AS STUDENTS IN A CUPERTINO CALIFORNIA HIGH SCHOOL USED APPLE COMPUTER INCORPORATED MACINTOSH COMPUTERS WIRED TO THE INTERNET TO SEND ELECTRONIC MESSAGES TO SCIENTISTS AND GERMAN PEN PALS AND TO RETRIEVE THE SOUND AND VIDEO OF ANOTHER RECENT GORE SPEECH THE TIME IS NOT FAR OFF WHEN EVERY TEACHER AND EVERY SCHOOL WILL BE DOING THIS ON A REGULAR BASIS MR. GORE TOLD THE STUDENTS GREAT PACIFIC REAL ESTATE INVESTMENT TRUST AN AMENDED OFFERING OF TWO MILLION UNITS EACH CONSISTING OF ONE COMMON SHARE AND ONE WARRANT TO PURCHASE ONE COMMON SHARE VIA BARABAN SECURITIES OF LOS ANGELES INFOSOFT INTERNATIONAL INCORPORATED AN INITIAL OFFERING OF THREE MILLION COMMON SHARES VIA C. S. FIRST BOSTON AND ADAMS HARKNESS AND HILL INCORPORATED LEVEL ONE COMMUNICATIONS INCORPORATED AN OFFERING OF TWO POINT EIGHT MILLION COMMON SHARES OLYMPIC STEEL INCORPORATED AN INITIAL OFFERING OF FOUR MILLION COMMON SHARES VIA SALOMON BROTHERS INCORPORATED GOLDMAN SACHS AND COMPANY AND MCDONALD AND COMPANY SECURITIES INCORPORATED SWEETWATER INCORPORATED AN INITIAL OFFERING OF SIX HUNDRED TWENTY FIVE THOUSAND COMMON SHARES AT SEVEN DOLLARS A SHARE XLI CORPORATION AN OFFERING OF UP TO EIGHT HUNDRED SIXTY TWO THOUSAND FIVE HUNDRED UNITS EACH CONSISTING OF ONE CONVERTIBLE PREFERRED SHARE AND ONE COMMON STOCK PURCHASE WARRANT VIA THOMAS JAMES ASSOCIATES EACH CONVERTIBLE PREFERRED SHARE WILL BE CONVERTIBLE INTO TWO XLI COMMON SHARES THE DOLLAR SURGED TO ITS HIGHEST LEVEL AGAINST THE MARK SINCE AUGUST NINETEEN NINETY ONE AS SOME SURPRISINGLY STRONG U. S. RETAIL SALES DATA FOR DECEMBER PROVIDED RENEWED EVIDENCE OF A BOISTEROUS U. S. ECONOMY THE DOLLAR SLIPPED VERSUS THE YEN HOWEVER AS TRADERS SOLD MARKS FOR YEN AND U. S. OFFICIALS VOICED CONCERNS ABOUT A LACK OF PROGRESS IN THE U. S. JAPAN TRADE TALKS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FIVE OH FIVE MARKS UP FROM ONE POINT SEVEN THREE THREE SEVEN MARKS LATE WEDNESDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED ELEVEN POINT SEVEN SIX YEN DOWN FROM ONE HUNDRED TWELVE POINT TWO OH YEN STERLING WAS TRADING AT ONE POINT FOUR NINE SEVEN OH DOLLARS DOWN FROM ONE POINT FIVE OH THREE FIVE DOLLARS ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED ELEVEN POINT SEVEN THREE YEN AND AT ONE POINT SEVEN FIVE OH OH MARKS THE DOLLAR BEGAN ITS CLIMB AGAINST THE MARK DURING THE ASIAN DAY AS TRADERS DUMPED THE GERMAN CURRENCY ON WORD OF A C. B. S. NEWS POLL SHOWING THAT SUPPORT FOR RUSSIAN PRESIDENT BORIS YELTSIN HAS PLUNGED TO THIRTY EIGHT PERCENT CURRENTLY FROM FIFTY PERCENT IN OCTOBER THE MARK OFTEN SUFFERS ON SIGNS OF POLITICAL TENSION IN RUSSIA BECAUSE OF GERMANY'S CLOSE POLITICAL AND ECONOMIC LINKS TO EASTERN EUROPE BY EARLY NORTH AMERICAN TRADING THE MARK SELL OFF HAD LIFTED THE DOLLAR TO JUST UNDER A KEY PSYCHOLOGICAL LEVEL AT ONE POINT SEVEN FOUR EIGHT OH MARKS THE HIGHEST LEVEL REACHED BY THE DOLLAR DURING NINETEEN NINETY THREE AND FROM THERE THE DOLLAR TOOK OFF AFTER A BULLISH U. S. RETAIL SALES REPORT PERSUADED TRADERS THAT THE U. S. ECONOMY IS STILL RACING AHEAD ON ALL CYLINDERS QUOTE THE MARKET HAD BEEN LOOKING TO TAKE OUT LAST YEAR'S HIGH FOR SOME TIME QUOTE SAID BILL BERTHA A VICE PRESIDENT AT MELLON BANK IN PITTSBURGH THE RETAIL SALES DATA WAS A CATALYST TO DO JUST THAT IT JUST FINALLY SPRUNG HE ADDED THE U. S. COMMERCE DEPARTMENT SAID U. S. RETAIL SALES INCREASED ZERO POINT EIGHT PERCENT IN DECEMBER WELL ABOVE ECONOMISTS' EXPECTATIONS OF A ZERO POINT FOUR PERCENT GAIN AS THE DOLLAR SLICED THROUGH THE NINETEEN NINETY THREE HIGH IT CONTINUED TO CLIMB TO AN INTRADAY HIGH OF ONE POINT SEVEN FIVE FIVE THREE MARKS A LEVEL UNSEEN SINCE AUGUST THIRTY FIRST NINETEEN NINETY ONE IN THE AFTERMATH OF THE COUP AGAINST THEN SOVIET PRESIDENT MIKHAIL GORBACHEV AND THE U. S. CURRENCY MANAGED TO HOLD ABOVE THE ONE POINT SEVEN FIVE OH OH MARKS LEVEL DESPITE REPORTS OF DOLLAR SALES BY THE BUNDESBANK GERMANY'S CENTRAL BANK AS THE DOLLAR CLIMBED PAST THAT LEVEL FEARS OF BUNDESBANK INTERVENTION HAVE RECENTLY HELPED TO CAP THE DOLLAR'S RISE AGAINST THE MARK BUT THOSE FEARS WERE ASSUAGED AFTER TRADERS REPORTED ONLY RELATIVELY LIGHT INTERVENTION WHICH WASN'T SUFFICIENT TO REVERSE THE RALLY THE DOLLAR BROKE THROUGH CRITICAL LEVELS AND EVIDENTLY THE BUNDESBANK DID SELL THE DOLLAR BUT NOT WITH A TRUMPET BLARING SAID JOHN MCCARTHY MANAGER OF FOREIGN EXCHANGE AT I. N. G. CAPITAL MARKETS INCORPORATED PERHAPS THEY CAME IN TO ENSURE THAT THE RISE DIDN'T GET OUT OF HAND SAID CARL AMENDOLA VICE PRESIDENT OF BAYERISCHE HYPOTHEKEN UND WECHSEL BANK A. G. IN NEW YORK I THINK THEY'RE SMART ENOUGH TO KNOW THEY DON'T HAVE ENOUGH RESOURCES TO BUCK THE ENTIRE FOREIGN EXCHANGE MARKET HE SAID MEANWHILE THE YEN GAINED AGAINST BOTH THE DOLLAR AND THE MARK BOOSTED BY QUOTE A TREMENDOUS AMOUNT OF STOP LOSSES QUOTE WHEN TRADERS LONG ON THE MARK AGAINST THE YEN WERE CAUGHT OFF GUARD BY THE GERMAN CURRENCY'S SUDDEN DECLINE VERSUS THE DOLLAR SAID MELLON BANK'S MR. BERTHA THE YEN ALSO WAS HELPED BY MORE TOUGH TALK BY U. S. OFFICIALS RILED BY THE SLOW PACE OF JAPAN U. S. TRADE TALKS BROWN GROUP INCORPORATED SAINT LOUIS SAID IT WILL TAKE A FOURTH QUARTER CHARGE OF FIFTY MILLION DOLLARS TO COVER COSTS TO REDUCE ITS WORKFORCE AND TO CLOSE OR CONSOLIDATE OPERATIONS THE SHOE AND SPECIALTY RETAILING COMPANY SAID IT PLANS TO CONSOLIDATE ITS BROWN SHOE COMPANY AND PAGODA UNITS CLOSE MORE THAN ONE HUNDRED COMPANY OWNED REGAL AND CONNIE SHOE STORES NATIONWIDE AND SHUT FIVE SHOE FACTORIES IN MISSOURI AND TENNESSEE THE MOVES ARE PART OF A RESTRUCTURING PLAN THAT WILL CUT EMPLOYMENT BY FIVE THOUSAND SIX HUNDRED SIXTY POSITIONS OR ABOUT TWENTY PERCENT BROWN GROUP SAID WHEN THE MOVES ARE COMPLETED NEXT YEAR THE COMPANY SAID IT WILL HAVE REDUCED COSTS BY FORTY MILLION DOLLARS WHILE ALLOWING IT TO FOCUS ON ITS MOST PROMISING BUSINESSES FOR THE FOURTH QUARTER ENDED JANUARY THIRTIETH NINETEEN NINETY THREE BROWN GROUP POSTED NET INCOME OF NINE POINT ONE MILLION DOLLARS OR FIFTY THREE CENTS A SHARE ON SALES OF FOUR HUNDRED FORTY NINE POINT EIGHT MILLION DOLLARS COLUMBUS SOUTHERN POWER COMPANY A UNIT OF AMERICAN ELECTRIC POWER COMPANY SAID ON FEBRUARY TWELFTH IT WILL REDEEM THE ENTIRE PRINCIPAL AMOUNT OUTSTANDING OF ITS EIGHT AND FIVE EIGHTHS PERCENT FIRST MORTGAGE BONDS DUE NINETEEN NINETY SIX AND THE ENTIRE PRINCIPAL AMOUNT OF ITS NINE PERCENT FIRST MORTGAGE BONDS DUE NINETEEN NINETY NINE THE REDEMPTION PRICE FOR THE EIGHT AND FIVE EIGHTHS PERCENT BONDS WILL BE ONE HUNDRED PERCENT OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST FROM FEBRUARY FIRST REDEMPTION PRICE FOR THE NINE PERCENT BONDS WILL BE ONE HUNDRED ONE POINT SEVEN FOUR PERCENT OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST FROM DECEMBER FIRST ALSO THE COMPANY SAID THAT ON MARCH FIRST IT WILL REDEEM ONE MILLION DOLLAR PRINCIPAL AMOUNT OF ITS NINE PERCENT FIRST MORTGAGE BONDS DUE TWO THOUSAND SEVENTEEN THE COMPANY WILL REDEEM THOSE BONDS AT THE SPECIAL REDEMPTION PRICE OF ONE HUNDRED PERCENT OF THE PRINCIPAL AMOUNT CITIBANK NEW YORK IS THE REDEMPTION AGENT COLUMBUS SOUTHERN POWER SAID PRESIDENT CLINTON'S NUCLEAR DISARMAMENT AGREEMENT WITH RUSSIA AND UKRAINE IS A DIPLOMATIC SUCCESS THAT'S ABOUT TO BECOME A HUGE BUSINESS CHALLENGE FOR WILLIAM TIMBERS HE IS THE HEAD OF UNITED STATES ENRICHMENT CORPORATION THE CONGRESSIONALLY CHARTERED COMPANY THAT'S IN THE MIDDLE OF THE ELEVEN POINT NINE BILLION DOLLAR AGREEMENT TO PURCHASE URANIUM USED IN WARHEADS OF THE FORMER SOVIET UNION AND TURN IT INTO FUEL FOR NUCLEAR POWER PLANTS THE BASIC MEGATONS TO MEGAWATTS AGREEMENT REACHED BY PRESIDENT CLINTON RUSSIAN PRESIDENT BORIS YELTSIN AND UKRAINIAN PRESIDENT LEONID KRAVCHUK WILL BE FOLLOWED BY THE SIGNING TODAY OF AN IMPLEMENTING CONTRACT BY MR. TIMBERS AND VIKTOR MIKHAILOV THE RUSSIAN ATOMIC ENERGY COMMISSIONER THEY'LL SIGN THE AGREEMENT IN A BUILDING WHERE THE FORMER SOVIET UNION DESIGNED THE NUCLEAR ARSENAL IT DEPLOYED AGAINST THE U. S. NOW MR. MIKHAILOV DESCRIBES THE ARSENAL IN ECONOMIC RATHER THAN MILITARY TERMS IN AN INTERVIEW WITH NUKEM MARKET REPORT A GERMAN PUBLICATION HE CALLS THE HIGHLY ENRICHED URANIUM THAT POWERS MISSILES AND BOMBS QUOTE A VERY IMPORTANT RESERVE OF RUSSIA QUOTE BECAUSE THE CORE OF THE WARHEADS REPRESENTS A SOURCE OF HARD CURRENCY FOR THE CASH STRAPPED COUNTRY AS IT REDUCES ITS MILITARY THREAT RUSSIA WILL USE SOME OF THE REVENUE TO CONVERT ITS DEFENSE INDUSTRIES TO OTHER USES IMPROVE THE SAFETY OF ITS NUCLEAR POWER PLANTS AND CLEAN UP POLLUTED AREAS THAT'S WHERE MR. TIMBERS COMES IN U. S. ENRICHMENT THE COMPANY HE HAS RUN SINCE MARCH IS IN CHARGE OF SUPERVISING THE TRANSFORMATION OF THE WARHEADS' HIGHLY ENRICHED URANIUM TO LOW ENRICHED URANIUM FOR USE IN POWER PLANTS RUSSIAN FACILITIES WILL DO THE CONVERSION AND U. S. ENRICHMENT WILL BUY THE FINISHED PRODUCT FROM THE RUSSIANS FOR SALE ON THE WORLD MARKET THE CONCEPT IS SIMPLE BUT EXECUTION OF THE PLAN WILL CREATE TWO PROBLEMS FOR MR. TIMBERS FIRST THE CONTRACT REQUIRES U. S. ENRICHMENT TO PAY MUCH MORE FOR THE FUEL THAN IT CAN BE SOLD FOR MR. TIMBERS CALLS THE DIFFERENCE A NATIONAL SECURITY PREMIUM THAT HE EVENTUALLY HOPES TO GET BACK FROM THE U. S. GOVERNMENT SECOND U. S. ENRICHMENT WILL BECOME BOTH A CUSTOMER OF THE RUSSIAN NUCLEAR INDUSTRY AND A COMPETITOR CURRENTLY U. S. ENRICHMENT SELLS ABOUT FORTY SIX PERCENT OF THE LOW ENRICHED URANIUM USED ON THE WORLD MARKET THE REST IS SOLD BY COGEMA A CONSORTIUM LED BY THE FRENCH GOVERNMENT URENCO A BRITISH LED GROUP AND THE RUSSIAN GOVERNMENT ONE PART OF THE AGREEMENT MAKES IT EASIER FOR RUSSIA TO SELL LOW ENRICHED URANIUM TO NUCLEAR POWER PLANTS IN THE U. S. MR. TIMBERS DOESN'T SEEM TOO WORRIED ABOUT THE ADDITIONAL COMPETITION THE RUSSIANS HAVE GOOD TECHNOLOGY BUT THEY DON'T KNOW WHAT THEIR PRICING IS HE SAYS MR. TIMBERS A FORMER INVESTMENT BANKER GOT INVOLVED IN THE PROGRAM WHEN THE U. S. ENERGY DEPARTMENT HIRED HIM TO STUDY WAYS TO PRIVATIZE COMMERCIAL ASPECTS OF ITS NUCLEAR PROCESSING BUSINESS BASED ON HIS ANALYSIS CONGRESS CREATED U. S. ENRICHMENT LAST YEAR WITH THE IDEA THAT IT WILL EVENTUALLY BECOME PRIVATELY OWNED RIGHT NOW THE TREASURY IS MY ONLY SHAREHOLDER SAYS MR. TIMBERS WHO CAME TO MOSCOW ON TREASURY SECRETARY LLOYD BENTSEN'S PLANE FOR THE CLINTON YELTSIN SUMMIT U. S. ENRICHMENT HAS ASSETS OF ABOUT THREE BILLION DOLLARS ANNUAL REVENUE OF ONE POINT FIVE BILLION DOLLARS AND A PROFIT OF ABOUT FOUR HUNDRED MILLION DOLLARS WHICH IT TURNS OVER TO THE TREASURY UNDER THE AGREEMENT THE U. S. WILL PAY RUSSIA ELEVEN POINT NINE BILLION DOLLARS OVER TWENTY YEARS FOR FIVE HUNDRED METRIC TONS OF URANIUM BUT THE CONTRACT WHICH ALSO INCLUDES BELARUS AND KAZAKHSTAN COULD TURN OUT TO BE MUCH LARGER THE INCLUSION OF UKRAINE WILL ADD FIFTY METRIC TONS WHICH RUSSIA WILL PURCHASE IN RETURN FOR DEBT RELIEF AND FUEL FOR POWER PLANTS MORE SIGNIFICANTLY THE RUSSIAN ARSENAL CURRENTLY CONTAINS ONE THOUSAND TWO HUNDRED FIFTY METRIC TONS OF HIGHLY ENRICHED URANIUM THE CONTRACT COULD BE MUCH LARGER IF RUSSIA TAKES THE OPTION TO SELL MORE FUEL BY DISMANTLING MORE WARHEADS THE AGREEMENT WILL FLOOD THE MARKET WITH NEW FUEL AT A TIME WHEN PRICES ALREADY ARE SOFT THE PROBLEM U. S. ENRICHMENT FACES IS THAT UNDER THE CONTRACT IT MUST PAY RUSSIA EIGHTY TWO DOLLARS FOR EACH UNIT OF LOW ENRICHED URANIUM IT PURCHASES AT A TIME WHEN THE WORLD PRICE IS FIFTY DOLLARS AND LIKELY TO DROP ONCE THE SWORDS TO PLOWSHARES PROGRAM STARTS MR. TIMBERS HOPES THAT THE U. S. GOVERNMENT WILL DECIDE TO PAY THAT DIFFERENCE TO U. S. ENRICHMENT IN URANIUM WHICH IT CAN THEN SELL I'D RATHER HAVE A HARD ASSET ON THE BALANCE SHEET AS THE COMPANY WORKS TO BECOME PRIVATELY OWNED HE SAYS STATE STREET BOSTON CORPORATION SAID ITS FOURTH QUARTER NET INCOME ROSE NINE POINT THREE PERCENT TO FORTY SEVEN POINT SEVEN MILLION DOLLARS OR SIXTY TWO CENTS A SHARE FROM FORTY THREE POINT SIX MILLION DOLLARS OR FIFTY SIX CENTS A SHARE THE BOSTON BANK MAKES MOST OF ITS MONEY FROM FEES FOR SERVICING MUTUAL FUNDS AND INSTITUTIONAL MONEY MANAGEMENT IT SAID THAT HIGHER OPERATING EXPENSES FOR SALARIES COMPUTERS AND PRODUCT DEVELOPMENT OFFSET A TWENTY ONE PERCENT INCREASE IN FEE REVENUE TO TWO HUNDRED TWENTY TWO POINT SEVEN MILLION DOLLARS FOR THE YEAR STATE STREET SAID NET ROSE TWELVE PERCENT TO ONE HUNDRED SEVENTY NINE POINT EIGHT MILLION DOLLARS OR TWO DOLLARS AND THIRTY SIX CENTS A SHARE FROM ONE HUNDRED SIXTY POINT FOUR MILLION DOLLARS OR TWO DOLLARS AND TEN CENTS A SHARE DURING THE YEAR ASSETS UNDER CUSTODY ROSE TWENTY ONE PERCENT TO ONE POINT SIX TRILLION DOLLARS MICHAEL FORTUNATO A WEST VIRGINIA DOCTOR OPENED A NEW OFFICE FIVE MILES ACROSS THE OHIO RIVER LAST SUMMER JUST FAR ENOUGH TO SHIELD PART OF HIS INCOME FROM WEST VIRGINIA'S NEW TWO PERCENT TAX ON DOCTORS' REVENUES WHILE AN EXTREME REACTION DOCTOR FORTUNATO'S MOVE TO OHIO REFLECTS GROWING CONCERN WITHIN THE MEDICAL COMMUNITY ABOUT MANY STATES' NEW RELIANCE ON DOCTORS AND HOSPITALS TO HELP DEFRAY THE COST OF MEDICAL CARE FOR THE POOR WITHIN THE PAST YEAR LAWMAKERS IN MINNESOTA AND KENTUCKY ALSO HAVE IMPLEMENTED TWO PERCENT REVENUE TAXES WHICH DOCTORS ARE CHALLENGING IN COURT NEBRASKA TENNESSEE MINNESOTA AND WASHINGTON D. C. HAVE PLACED NEW LICENSING FEES ON PHYSICIANS AND PHYSICIAN TAXES ARE ON THE AGENDA IN ABOUT A DOZEN STATES MEANWHILE ABOUT TWENTY FIVE STATES HAVE PLACED LEVIES ON HOSPITALS TO HELP CARRY THE BURDEN THESE NEW FINANCING EFFORTS SPRING FROM MANY STATES' INCREASING DESPERATION OVER THE COSTS OF THE FEDERAL MEDICAID PROGRAM FOR THE POOR WHICH IS PARTLY FUNDED BY THE STATES THE ASSESSMENTS HAVE RENEWED THE QUESTION OF WHETHER IT IS FAIR TO TAX ONE GROUP OF PEOPLE TO PAY FOR SERVICES THAT BENEFIT SOCIETY SIMILAR TAXES ON LAWYERS THAT HAVE BEEN PROPOSED IN SOME STATES FOR VARIOUS PURPOSES ALSO HAVE AROUSED CONTROVERSY BECAUSE SUCH TAXES OFTEN TARGET HIGHLY PAID AND SOMETIMES UNPOPULAR PROFESSIONS THEY HAVE BECOME POLITICALLY FASHIONABLE IN AN ERA OF PUBLIC HOSTILITY TO BROAD TAX HIKES STATES TYPICALLY JUSTIFY THE PHYSICIAN ASSESSMENT FOR INSTANCE AS A WAY OF REQUIRING DOCTORS TO FULFILL THEIR ETHICAL RESPONSIBILITY TO CARE FOR THE POOR IN ADDITION SOME STATE OFFICIALS POINT OUT BECAUSE THE STATE GIVES DOCTORS A VALUABLE AND EXCLUSIVE LICENSE TO PRACTICE MEDICINE IT HAS A RIGHT TO COLLECT A SMALL TAX FOR THE PUBLIC GOOD BUT THE TAXES HAVE TRIGGERED FIERCE RESISTANCE FROM THE AMERICAN MEDICAL ASSOCIATION AND ITS AFFILIATED STATE ORGANIZATIONS TAXING DOCTORS TO COVER HEALTH CARE FOR THE POOR IS QUOTE LIKE BUILDING CONTRACTORS HAVING TO BUILD HOMES FOR THE HOMELESS OR LAWYERS HAVING TO PAY TAXES TO FUND THE BUILDING OF PRISON SYSTEMS QUOTE SAYS ARDIS HOVEN THE PRESIDENT OF THE KENTUCKY MEDICAL ASSOCIATION THIS WAS BASICALLY A SPECIAL PROFESSIONAL TAX THAT WAS BENEFITING ONLY ONE SEGMENT OF SOCIETY THE INDIGENT IN KENTUCKY A GROUP OF PHYSICIANS THE STATE MEDICAL ASSOCIATION AND SOME HEALTH MAINTENANCE ORGANIZATIONS HAVE ARGUED THAT THE STATE'S NEW TAX WHICH ALSO ASSESSES HOSPITALS AND H. M. O.S TWO POINT FIVE PERCENT OF THEIR REVENUES VIOLATES KENTUCKY'S CONSTITUTION IN NOVEMBER A JUDGE AGREED HIS RULING IS UNDER APPEAL THERE IS NO REASONABLE BASIS TO SINGLE OUT THESE HEALTH CARE PROVIDERS TO PAY SPECIAL TAXES TO SUPPORT THE MEDICAID PROGRAM WROTE STATE JUDGE ROGER CRITTENDEN IN HIS RULING THIS PROGRAM BENEFITS THE STATE'S RESIDENTS AS A WHOLE AND THERE ARE NO JUSTIFIABLE REASONS FOR ARBITRARILY DESIGNATING PHYSICIANS TO PAY FOR IT BUT LAST MONTH THE CHIEF JUSTICE OF THE KENTUCKY SUPREME COURT SAID THE STATE COULD CONTINUE COLLECTING THE TAX UNTIL THE APPEAL IS DECIDED STATES HAVE FOUND THEMSELVES SQUEEZED FINANCIALLY FROM SEVERAL DIRECTIONS ABOVE ALL THE PRICE OF MEDICAL CARE HAS SOARED THE FEDERAL GOVERNMENT HAS EXPANDED THE SERVICES COVERED BY MEDICAID AND HAS MADE MORE PEOPLE ELIGIBLE FOR IT AND THE RECESSION HAS DRIVEN MORE PEOPLE ONTO THE PROGRAM'S ROLLS CONGRESS HASN'T INCREASED THE FEDERAL SHARE OF MEDICAID FUNDING IN YEARS LEAVING THE STATES TO PICK UP THE SLACK MEDICAID HAS BECOME THE PACMAN OF STATE GOVERNMENT SAYS RICHARD HEGNER A MEDICAID SPECIALIST AT GEORGE WASHINGTON UNIVERSITY'S INTERGOVERNMENTAL HEALTH POLICY PROJECT PRESIDENT CLINTON'S HEALTH PLAN AS WRITTEN WOULD HELP RELIEVE THE STATES' FINANCIAL CRUNCH BY ELIMINATING MAJOR PARTS OF THE MEDICAID PROGRAM INSTEAD POOR AND UNEMPLOYED PEOPLE WOULD BE POOLED INTO THE SAME GIANT HEALTH CARE ALLIANCES AS THE GENERAL PUBLIC AND THE COST OF THEIR HEALTH COVERAGE WOULD BE PAID MOSTLY BY THE FEDERAL GOVERNMENT MEANWHILE LEGISLATURES THAT TAX PHYSICIANS ARE IN EFFECT ENCOURAGING THEM TO MAINTAIN THEIR INCOME BY REACHING OUT FOR NEW PATIENTS INCLUDING THOSE COVERED BY MEDICAID SAYS UWE REINHARDT A PRINCETON UNIVERSITY HEALTH ECONOMIST YOU CAN STILL KEEP YOUR MERCEDES BUT INSTEAD OF GOING HOME AT FIVE O'CLOCK YOU GO HOME AT FIVE THIRTY HE SAYS THE OTHER OPTION SAYS DOCTOR FORTUNATO OF WEST VIRGINIA IS TO MOVE OUT OF STATE DOCTOR FORTUNATO SEES ABOUT TWENTY PERCENT OF HIS PATIENTS IN RENTED OFFICE SPACE IN MARTINS FERRY OHIO AND IS CONSIDERING MOVING HIS ENTIRE PRACTICE THERE IF THE TAX RATE IS RAISED ANTICIPATING SUCH A RESPONSE MINNESOTA HAS EXTENDED ITS TAX TO OUT OF STATE PHYSICIANS WHO TREAT MINNESOTA PATIENTS PHYSICIANS IN NEIGHBORING NORTH DAKOTA SOUTH DAKOTA IOWA AND WISCONSIN HAVE FILED A LAWSUIT LARGELY FUNDED BY THE A. M. A. CHALLENGING THE MINNESOTA BORDER STATE TAX AS UNCONSTITUTIONAL THE FORMER GREENFIELD AND CHIMICLES ONE OF THE NATION'S LARGEST PLAINTIFFS' FIRMS CONTINUES TO BE ROCKED BY DEFECTIONS LAST SUMMER NAME PARTNER RICHARD GREENFIELD LEFT THE HAVERFORD PENNSYLVANIA FIRM AMID A NEW JERSEY FEDERAL COURT INQUIRY INTO ALLEGATIONS OF ETHICAL IMPROPRIETIES IN A SECURITIES CLASS ACTION THAT HE HANDLED INVOLVING INVESTOR DONALD TRUMP MR. GREENFIELD ULTIMATELY ACCEPTED A FIVE THOUSAND DOLLAR FINE AND A ONE YEAR SUSPENSION FROM THE PRACTICE OF LAW IN FEDERAL COURTS THAT STARTED JANUARY FIRST THIS WEEK THE SURVIVING FIRM CHIMICLES BURT AND JACOBSEN ANNOUNCED THAT TWO OTHER LAWYERS INCLUDING NAME PARTNER C. OLIVER BURT AND PARTNER MICHAEL J. PUCILLO WERE LEAVING TO FORM BURT AND PUCILLO THE NEW FIRM WILL HAVE OFFICES IN HAVERFORD AND WILL ASSUME CONTROL OF THE FORMER CHIMICLES BURT OFFICE IN WEST PALM BEACH FLORIDA A TOTAL OF FIVE LAWYERS INCLUDING PART TIME LAWYERS ARE INVOLVED IN THE LATEST MOVE QUOTE I THINK IT IS JUST A NATURAL EVOLUTION IN THE PRACTICE OF LAW THAT YOUNG LAWYERS WANT TO START THEIR OWN FIRM QUOTE SAID MR. PUCILLO FORTY YEARS OLD MR. BURT COULDN'T BE REACHED FOR COMMENT MR. PUCILLO SAID THAT AMONG THE CASES THAT THE TWO LAWYERS WOULD BE TAKING WITH THEM WERE CLASS ACTION SUITS AGAINST AMERIFIRST BANK AND SOUTHEAST BANKING CORPORATION TWO FAILED FLORIDA LENDING INSTITUTIONS NICHOLAS CHIMICLES SAID THE DEPARTURES HAD NOTHING TO DO WITH THE TERMINATION OF GREENFIELD AND CHIMICLES AND DIDN'T SUGGEST ANY MAJOR PROBLEMS AT THE FIRM THE FIRM WAS RENAMED CHIMICLES JACOBSEN AND TIKELLIS AND MAINTAINS THIRTY TWO LAWYERS WITH OFFICES IN LOS ANGELES WILMINGTON DELAWARE AND HAVERFORD I FEEL VERY BAD ABOUT IT MR. GREENFIELD SAID OF HIS OLD FIRM A BUNCH OF THESE GUYS ARE MY FRIENDS AND IT IS A SHAME THAT IT IS NOT HOLDING TOGETHER HE SAID THE FIRM HAD ABOUT FORTY FIVE ATTORNEYS JUST BEFORE HE DEPARTED LAST YEAR TWO OLD LINE FLORIDA FIRMS MACFARLANE FERGUSON BASED IN TAMPA AND AUSLEY MCMULLEN MCGEEHEE CAROTHERS AND PROCTOR BASED IN TALLAHASSEE ARE JOINING FORCES LITIGATION ORIENTED AUSLEY MCMULLEN WITH THIRTY TWO LAWYERS IN TALLAHASSEE IS THE OLDEST AND BIGGEST LAW FIRM IN THE STATE CAPITAL ITS CLIENTS INCLUDE SPRINT CORPORATION TECO ENERGY INCORPORATED AND C. S. X. CORPORATION MACFARLANE FERGUSON IS BEST KNOWN FOR REPRESENTING LYKES BROTHERS INCORPORATED A CLOSELY HELD COMPANY IN TAMPA WITH VAST INTERESTS IN FLORIDA AGRICULTURE MEAT PACKING SHIPPING AND ENERGY THE MERGER WHICH TAKES EFFECT FEBRUARY FIRST IS EXPECTED TO BOOST MACFARLANE FERGUSON'S STATEWIDE PRESENCE BEFORE THE PACT THE FIRM HAD ONLY FOUR LAWYERS IN TALLAHASSEE THE COMBINED FIRMS TO BE KNOWN AS MACFARLANE AUSLEY FERGUSON AND MCMULLEN WILL HAVE ONE HUNDRED TEN LAWYERS WITH THIRTY TWO IN TALLAHASSEE FOURTEEN IN CLEARWATER AND SIXTY FOUR IN TAMPA RICHARD B. SCHMITT AND MILO GEYELIN CONTRIBUTED TO THIS ARTICLE CITICORP HOPING TO ACCELERATE ITS RECENT RECOVERY SAID IT WOULD TAKE SIX HUNDRED FOUR MILLION DOLLARS IN FOURTH QUARTER CHARGES TO SLASH OPERATIONS AND PERSONNEL FURTHER THE BANK ALSO SAID ITS NET INCOME FOR THE QUARTER MORE THAN DOUBLED THE NATION'S BIGGEST BANKING COMPANY WHICH WILL POST RECORD EARNINGS FOR NINETEEN NINETY THREE AFTER INCURRING BILLIONS OF DOLLARS OF WRITEOFFS FOR BAD LOANS IS MAKING FURTHER CUTS NOW AMID GROWING COMPETITION IN THE BANKING INDUSTRY FOR EVERYTHING FROM CORPORATE LOANS TO CREDIT CARDS CITICORP GILDED THE CHARGE ANNOUNCEMENT BY SAYING IT WILL REPORT FOURTH QUARTER EARNINGS NEXT WEEK OF ABOUT FIVE HUNDRED SEVENTY FIVE MILLION DOLLARS AFTER CHARGES AND ONE TIME GAINS UP FROM TWO HUNDRED EIGHTY MILLION DOLLARS A YEAR EARLIER TOGETHER THE ANNOUNCEMENTS TRIGGERED A SHARP RALLY IN CITICORP SHARES WHICH CLIMBED TWO POINT ONE TWO FIVE DOLLARS TO FORTY DOLLARS AND SEVENTY FIVE CENTS A RECORD HIGH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THAT COMPARES WITH EIGHT DOLLARS AND FIFTY CENTS A SHARE IN LATE NINETEEN NINETY ONE WHEN THE BANK WAS IN THE MIDDLE OF WRITING OFF MOUNTAINS OF BAD DEBT PRIMARILY IN REAL ESTATE IN THE PAST TWO YEARS THE BANK HAS SHED FOURTEEN THOUSAND EMPLOYEES AND ONE POINT THREE BILLION DOLLARS IN EXPENSES WHICH HAS HELPED RESTORE PROFITABILITY BUT IN THE THIRD QUARTER OF LAST YEAR EXPENSES BEGAN CREEPING HIGHER AS CITICORP FOUGHT TO DEFEND ITS SHARE OF THE HOTLY COMPETITIVE CREDIT CARD MARKET THAT ALONG WITH LACKLUSTER REVENUE HAS PROMPTED THE COMPANY TO CUT COSTS AGAIN THE BANK SAID IT WOULD RECOUP THE FOUR HUNDRED TWENTY FIVE MILLION DOLLAR RESTRUCTURING CHARGE BY THE END OF NEXT YEAR THROUGH LOWER EXPENSES SOME EXECUTIVES BELIEVE AS MUCH AS ONE BILLION DOLLARS IN ANNUAL COSTS COULD EVENTUALLY BE CUT QUOTE THEY NEED ROUND TWO OF COST SAVINGS QUOTE SAID JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH AND COMPANY THOUGH CITICORP DIDN'T SAY WHERE THE CUTS WILL COME FROM THE BANK IS REACTING TO A SLOW GROWING ECONOMY AND A MATURE INDUSTRY RATHER THAN ANY IMPENDING CRISIS WHETHER IT'S CONSOLIDATING CUSTOMER SERVICE OPERATIONS OR CUTTING STAFF AT ITS BRANCHES CITICORP HOPES TO FEND OFF INCREASING COMPETITION FROM BOTH INSIDE AND OUTSIDE THE BANKING INDUSTRY OTHER BANKS SUCH AS FLEET FINANCIAL GROUP INCORPORATED ARE TAKING SIMILAR MEASURES NOBODY'S EXPECTING A DRAMATIC TURNAROUND IN REVENUE GROWTH SO THEY'RE FINDING MORE WAYS TO STREAMLINE MR. KRAUSHAAR SAID BECAUSE CITICORP DOESN'T HAVE A LONG HISTORY OF EXPENSE MANAGEMENT SOME ANALYSTS ARE HOPING MR. STEFFEN CAN INSTILL MORE DISCIPLINE THE JOB NOW IS TO INSTITUTIONALIZE AN ATTITUDE TOWARD COSTS MR. STEFFEN TOLD A MEETING OF CITIBANK'S NEW MANAGEMENT ASSOCIATES LATE LAST YEAR THE BANK NEEDS TO BE DOING MORE WITH WHAT WE HAVE THE RESTRUCTURINGS PROBABLY WILL RESULT IN THOUSANDS OF LAYOFFS AROUND THE COUNTRY OVER THE NEXT TWO YEARS ANALYSTS SAY THE BANK'S TOTAL WORK FORCE WAS ABOUT EIGHTY ONE THOUSAND EMPLOYEES AS OF A YEAR AGO THE LAST TIME THE BANK DISCLOSED THE FIGURE IT'S MOST LIKELY THAT THE LAYOFFS WILL LARGELY BE AT THE U. S. OPERATIONS PRIMARILY IN RETAIL BANKING BUT GLOBAL FINANCE WILL ALSO BE ASKED FOR ITS SHARE OF COST REDUCTIONS THE BANK HAS MORE THAN ONE THOUSAND FIVE HUNDRED OFFICES AND BRANCHES IN THE U. S. SOME OF WHICH COULD BE CONSOLIDATED WHILE THE SALE OF QUOTRON'S STOCK PRICE DATA BUSINESS TO REUTERS WASN'T PARTICULARLY SURPRISING CITICORP HAD BEEN LOSING MONEY ON THE FINANCIAL INFORMATION SERVICE SINCE IT WAS PURCHASED IN NINETEEN EIGHTY SIX THE ONE HUNDRED SEVENTY NINE MILLION DOLLAR CHARGE RELATED TO THE SALE WAS UNEXPECTED CITICORP HAD ALREADY TAKEN SUBSTANTIAL CHARGES THAT ANALYSTS FIGURED HAD REDUCED THE VALUE OF QUOTRON ON CITICORP'S BOOKS TO VIRTUALLY NOTHING IN NINETEEN NINETY TWO QUOTRON HAD A LOSS OF FORTY MILLION DOLLARS COMPARED WITH A FIVE HUNDRED THREE MILLION DOLLAR LOSS A YEAR EARLIER QUOTRON HAD BEEN A BAD DECISION IT'S AN HONORABLE EXIT SAID BRENT ERENSEL BANKING ANALYST AT U. B. S. SECURITIES QUOTE IT'S A PROPITIOUS TIME TO PART WITH PAST MISTAKES QUOTE CITICORP ALSO HAS THE CASH TO PAY FOR WRITE DOWNS GIVEN THE IMPROVED EARNINGS OUTLOOK WITHOUT GIVING DETAILS CITICORP SAID FOURTH QUARTER EARNINGS WOULD BE ONE DOLLAR AND SIX CENTS A SHARE WELL ABOVE ANALYSTS' CONSENSUS ESTIMATES OF NINETY FOUR CENTS A SHARE THE BANK'S PROFIT OF TWO HUNDRED EIGHTY MILLION DOLLARS A YEAR EARLIER AMOUNTED TO FIFTY THREE CENTS A SHARE FOR THE YEAR CITICORP EXPECTS TO POST RECORD NET INCOME OF TWO POINT TWO BILLION DOLLARS OR FOUR DOLLARS AND ELEVEN CENTS A SHARE INCLUDING A THREE HUNDRED MILLION DOLLAR ONE TIME ACCOUNTING GAIN ASIDE FROM ONE HUNDRED SEVEN MILLION DOLLARS IN GAINS FROM THE SALE OF BRAZILIAN DEBT THE BANKING COMPANY RECOGNIZED TWO HUNDRED MILLION DOLLARS IN DEFERRED TAX BENEFITS IN THE FOURTH QUARTER HOME SHOPPING NETWORK INCORPORATED SAID IT WILL LAUNCH ANOTHER CHANNEL THIS SUMMER TO SELL MERCHANDISE FROM NAME BRAND RETAILERS CATALOGERS AND CONSUMER PRODUCT COMPANIES HOME SHOPPING'S SERVICE CALLED THE TELEVISION SHOPPING MALL IS THE LATEST ENTRY IN THE INCREASINGLY CROWDED FIELD OF ELECTRONIC RETAILERS TRYING TO APPEAL TO AFFLUENT AUDIENCES Q. V. C. NETWORK INCORPORATED OF WEST CHESTER PENNSYLVANIA IS LAUNCHING AN UPSCALE NETWORK CALLED Q. TWO IN MAY RETAILERS R. H. MACY AND COMPANY AND NORDSTROM INCORPORATED ARE PLANNING T. V. AND INTERACTIVE SHOPPING SERVICES AND ON MONDAY CATALOG POWERHOUSE SPIEGEL INCORPORATED IN PARTNERSHIP WITH ENTERTAINMENT AND CABLE GIANT TIME WARNER INCORPORATED WILL UNVEIL DETAILS OF ITS CATALOG BASED HOME SHOPPING CHANNEL CATALOG ONE THEY WILL ANNOUNCE DEALS TO SELL MERCHANDISE FROM SHARPER IMAGE NEIMAN MARCUS CRATE AND BARREL NATURE COMPANY AND WILLIAMS SONOMA INCORPORATED AS WELL AS SPIEGEL SUBSIDIARY EDDIE BAUER THE SPORTS AND OUTERWEAR MARKETER THE NEW SERVICES ALL FACE AN UPHILL CLIMB IN SELLING MERCHANDISE TO THE AFFLUENT SO FAR SERVICES HAVE MADE THEIR REVENUE FROM SELLING BARGAIN PRICED ITEMS AIMED AT LOW TO MODERATE INCOME HOUSEHOLDS THERE HAVE BEEN BRIEF FORAYS FROM DESIGNER DIANE VON FURSTENBURG RETAILER SAKS FIFTH AVENUE AND THE MAKERS OF CITIZEN WATCHES BUT IT'S STILL A MEDIUM DOMINATED BY JEWELRY AND CLOTHING FROM LARGELY UNKNOWN VENDORS AND MANUFACTURERS HOME SHOPPING'S NATIONAL NETWORK TO BE LAUNCHED THIS SUMMER INITIALLY WILL REACH THREE MILLION CABLE HOMES AND TWENTY MILLION BROADCAST T. V. HOMES IT WILL PROVIDE A TELEVISED STAGE ON WHICH MARKETERS CAN CONTROL AND DESIGN TWO HOUR SHOWS FEATURING THEIR MERCHANDISE HOME SHOPPING BASED IN SAINT PETERSBURG FLORIDA REACHES SIXTY MILLION TELEVISION HOUSEHOLDS Q. V. C. IS AVAILABLE IN FIFTY MILLION HOMES AFTER TEN YEARS ON THE AIR THE MAJOR HOME SHOPPING CHANNELS HAVE ABOUT THREE BILLION DOLLARS IN COMBINED SALES SOME OPTIMISTIC PROJECTIONS SAY THE BUSINESS COULD GROW TO TWENTY FIVE BILLION DOLLARS BY THE END OF THE DECADE BUT CRITICS CONTEND THAT PEOPLE WON'T ABANDON THE EXPERIENCE OF SHOPPING PARTICULARLY TO BUY BIG TICKET MERCHANDISE AND DESPITE BRISK SALES T. V. SHOPPING CHANNELS ARE PLAGUED BY HIGH RETURN RATES THE FIRST HURDLE FOR THE NEW SHOPPING CHANNELS WILL BE ACQUIRING SPACE ON CABLE SYSTEMS ALTHOUGH CABLE SYSTEM OWNERS PLAN TO UPGRADE CHANNEL CAPACITY IN THE NEXT TWO TO FIVE YEARS THERE MAY NOT BE ENOUGH SLOTS ON THE T. V. CHANNEL LINEUP QUOTE JUST HOW MANY SHOPPING CHANNELS WILL CABLE OPERATORS FEEL THEY NEED QUOTE SAYS KIM HENDRIX SENIOR MANAGER AT THE MANAGEMENT HORIZONS DIVISION OF PRICE WATERHOUSE OPERATORS FACE THE ISSUE OF PROGRAMMING MIX ON THEIR SYSTEMS THEY MAY TAKE TWO OR THREE SHOPPING CHANNELS BUT I DOUBT THEY TAKE MORE THAN THAT BUT MS. HENDRIX LIKE OTHER INDUSTRY ANALYSTS BELIEVES THE NEW UPSCALE SHOPPING CHANNELS CAN SIGNIFICANTLY EXPAND THE AUDIENCE FOR ELECTRONIC RETAILING OUR DATA SHOW A GOOD PERCENTAGE OF AFFLUENT CUSTOMERS AREN'T FREQUENT SHOPPERS ON T. V. BUT ONCE YOU PUT SOMETHING OUT THERE THEY FIND WORTH BUYING YOU WILL SEE NUMBERS GROW MS. HENDRIX SAYS A NEW SHOPPING CHANNEL COULD RESTORE SOME LUSTER TO HOME SHOPPING NETWORK WHOSE FOUNDER AND CHAIRMAN ROY SPEER RESIGNED LAST YEAR AMID CHARGES OF RECEIVING KICKBACKS FROM VENDORS THE NEW PRESIDENT AND CHIEF EXECUTIVE FORMER TURNER BROADCASTING SYSTEM INCORPORATED EXECUTIVE GERALD F. HOGAN HAS HIRED RETAILING AND MERCHANDISING EXPERTS FROM SEVERAL INDUSTRIES CUT COSTS AND STREAMLINED OPERATIONS AND IMPROVED THE MIX OF MERCHANDISE ON ITS BASIC SHOPPING CHANNELS THE TELEVISION SHOPPING MALL WILL HAVE A DIFFERENT LOOK FROM HSN'S PRIMARY SERVICE HOME SHOPPING CLUB MR. HOGAN SAID THE TELEVISED MALL WILL ALLOW MARKETERS TO CREATE THEIR OWN STORES ON AIR EACH WITH A DISTINCT LOOK AND SENSIBILITY IN CONTRAST TO THE IN STUDIO TWENTY FOUR HOUR SHOPPING CLUB THE HSN MALL COULD PERMIT MORE ELABORATE PRODUCTION AND VISUAL EFFECTS SINCE THE SHOW COULD BE LIVE TAPED OR BOTH QUOTE EACH OF THE THIRTY FIVE MERCHANTS WILL BE ABLE TO CRAFT THE LOOK AND FEEL OF THEIR STORE TO REPRESENT THE IMAGE THEY WANT QUOTE HE SAID MR. HOGAN SAID HSN HAS HAD INFORMAL TALKS ABOUT THE TELEVISION SHOPPING MALL WITH MARKETERS INCLUDING CATALOGER HANOVER DIRECT INCORPORATED OFF PRICE RETAILER MARSHALLS AND MACY OVER TIME THE COMPETING UPSCALE CHANNELS COULD FIND THEMSELVES IN A BATTLE FOR EXCLUSIVE RIGHTS TO CERTAIN RETAILERS OR MARKETERS WHILE MR. HOGAN'S ELECTRONIC MALL ISN'T SIGNING COMPANIES TO EXCLUSIVE ARRANGEMENTS SPIEGEL SAYS IT IS SIGNING MARKETERS TO APPEAR ONLY ON ITS CATALOG ONE FOR THE TEST PERIOD CATALOG ONE WILL DEBUT AS A TEST ON VARIOUS TIME WARNER OWNED CABLE SYSTEMS NATIONWIDE WITH A NATIONAL ROLLOUT PLANNED FOR FALL JOHN J. SHEA SPIEGEL PRESIDENT AND CHIEF EXECUTIVE ALSO PLANS TO HAVE HIS SHOPPING CHANNEL LOOK DIFFERENT FROM TYPICAL HOME SHOPPING CHANNELS SPIEGEL PLANS TO FEATURE MODELS ON RUNWAYS OR EVEN SWIMSUITS MODELED ON LOCATION IN HAWAII THERE DEFINITELY WON'T BE ANY TALKING HEADS MR. SHEA SAYS THIS WILL BE VERY DIFFERENT THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY ONE POINT FIVE BILLION CANADIAN DOLLARS ONE POINT ONE THREE BILLION U. S. DOLLARS OF NONCALLABLE EIGHT PERCENT BONDS DUE JUNE FIRST TWO THOUSAND TWENTY THREE PROCEEDS WILL BE APPLIED TOWARD THE REDEMPTION OF TWO POINT SIX BILLION CANADIAN DOLLARS OF GOVERNMENT BONDS MATURING FEBRUARY FIRST IS THE OTHER SHOE ABOUT TO DROP AT AETNA LIFE AND CASUALTY COMPANY FOUR YEARS AGO THE COMPANY SPLIT ITSELF INTO FIFTEEN BUSINESS UNITS THAT REPORT PROFITS INDEPENDENTLY INSIDE THE COMPANY AT THE TIME AETNA SAID IT WOULD KEEP THE OPERATIONS THAT PERFORMED WELL AND EITHER FIX OR DISPOSE OF THE ONES THAT DIDN'T NOW IT LOOKS AS IF AETNA WHICH HAS TURNED IN SLUGGISH PROFITS FOR YEARS IS GETTING READY TO MAKE SOME MOVES EARLIER THIS WEEK AETNA'S BOARD MET IN A SPECIAL SESSION TO DISCUSS A STUDY PREPARED BY A CONSULTING FIRM THE BOSTON CONSULTING GROUP WHICH RECOMMENDED WHAT AETNA SHOULD DO AETNA BASED IN HARTFORD CONNECTICUT SAID NO DECISIONS HAVE BEEN MADE AND DECLINED TO COMMENT FURTHER BUT ACCORDING TO PEOPLE FAMILIAR WITH THE DISCUSSIONS OPTIONS INCLUDE DECENTRALIZING ITS ORGANIZATION AND SPINNING OFF BUSINESSES QUOTE IT WOULD NOT BE SURPRISING TO SEE THEM GET OUT OF ONE OR TWO BUSINESSES IN THE NEXT YEAR OR TWO QUOTE SAID ALAN ZIMMERMAN A PRUDENTIAL SECURITIES ANALYST ANOTHER LIKELY OUTCOME IS LAYING OFF EMPLOYEES ACCORDING TO PEOPLE FAMILIAR WITH THE DISCUSSIONS ONE FIGURE THAT AETNA IS SAID TO BE CONSIDERING IS FOUR THOUSAND LAYOFFS THE COMPANY CURRENTLY HAS FORTY TWO THOUSAND THREE HUNDRED EMPLOYEES ANALYSTS EXPECT AETNA TO ANNOUNCE SOME SORT OF MOVE AROUND THE TIME IT REPORTS YEAR END EARNINGS ON FEBRUARY NINTH ANY LAYOFFS AT AETNA WOULD BE SURPRISING GIVEN ITS EARLIER STAFF CUTS IN OCTOBER NINETEEN NINETY AETNA LAID OFF THREE THOUSAND WORKERS WHEN IT CREATED THE BUSINESS UNITS IN JUNE NINETEEN NINETY TWO FOUR MONTHS AFTER THE INSTALLING OF AETNA'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER RONALD COMPTON THE COMPANY ANNOUNCED AN ADDITIONAL FOUR THOUSAND EIGHT HUNDRED LAYOFFS THE CUTS HAVE IMPROVED AETNA'S PROFIT BUT ITS SEVEN PERCENT RETURN ON EQUITY PROFITS DIVIDED BY NET WORTH IS WELL BELOW THE TWELVE PERCENT TO FIFTEEN PERCENT DEMANDED BY INVESTORS NOT SURPRISINGLY THE COMPANY'S STOCK PRICE HAS BEEN A DISAPPOINTMENT ALTHOUGH AETNA STOCK ROSE TWENTY NINE POINT EIGHT PERCENT LAST YEAR COMPARED WITH A ONE POINT NINE THREE PERCENT RISE IN THE DOW JONES INSURANCE INDEX IN THE PRECEDING FIVE YEARS AETNA STOCK ROSE ONLY THIRTY NINE PERCENT COMPARED WITH A ONE HUNDRED ONE PERCENT RISE IN THE INDEX A MAJOR PROBLEM FOR AETNA IN ADDITION TO HIGH COSTS IS ITS PORTFOLIO OF BAD REAL ESTATE LOANS AETNA HAS FIFTEEN POINT SEVEN BILLION DOLLARS OF REAL ESTATE LOANS WHICH REPRESENT ABOUT A QUARTER OF ITS INVESTED ASSETS OF THOSE MORTGAGES ONE POINT FIVE BILLION DOLLARS ARE SIXTY DAYS PAST DUE OR IN THE PROCESS OF FORECLOSURE THE INABILITY OF THE MORTGAGE PORTFOLIO TO EARN A DECENT RETURN HAS BEEN A DRAG ON AETNA'S PROFITS FOR YEARS ANALYSTS SAY AETNA COULD FIX THE PROBLEM BY TAKING A LUMP SUM WRITE OFF AND BY ACCOUNTING FOR ITS PENSION BUSINESS AS A DISCONTINUED OPERATION WHICH IS WHAT EQUITABLE COMPANIES DID BEFORE GOING PUBLIC IN NINETEEN NINETY TWO BUT THEY ADD THAT AETNA IS UNLIKELY TO DO THAT BECAUSE LIKE OTHER INSURERS IT STILL HOPES FOR A TURNAROUND IN THE COMMERCIAL REAL ESTATE MARKET ANOTHER PROBLEM IS LOSSES ON POLLUTION CLAIMS LIKE OTHER INSURERS AETNA IS PLAGUED BY POLLUTION LOSSES ON COMMERCIAL LIABILITY POLICIES WRITTEN IN THE NINETEEN FIFTIES NINETEEN SIXTIES AND NINETEEN SEVENTIES SUCH CLAIMS AGAINST INSURERS USUALLY END UP IN COURT BUT AS WITH OTHER INSURERS AETNA HAS HAD ONLY LIMITED SUCCESS IN AVOIDING PAYMENT IN NINETEEN NINETY TWO'S FOURTH QUARTER AETNA POSTED A ONE HUNDRED EIGHTY MILLION DOLLAR CHARGE TO ESTABLISH RESERVES FOR CERTAIN ASBESTOS AND OTHER ENVIRONMENTAL EXPOSURES MORE CHARGES ARE EXPECTED ANALYSTS AND INVESTMENT BANKERS SAY THE BEST THING FOR THAT BUSINESS WOULD BE A REVISION IN THE FEDERAL SUPERFUND LAW THAT GOVERNS POLLUTION LIABILITY THE CLINTON ADMINISTRATION IS READYING A COMPROMISE SOLUTION THAT PROMISES INSURERS SOME RELIEF IN RETURN FOR IMPOSING A FIVE HUNDRED MILLION DOLLAR ANNUAL TAX ON THE PROPERTY AND CASUALTY INSURANCE INDUSTRY WITHOUT SOME CHANGE IN THE LAW INSURERS COULD BE OVERWHELMED ACCORDING TO A REPORT LAST YEAR BY THE GENERAL ACCOUNTING OFFICE THE INVESTIGATIVE ARM OF CONGRESS TILLINGHAST AN ACTUARIAL CONSULTING FIRM ESTIMATES THE POTENTIAL INSURANCE LOSSES IN THE NEXT FEW DECADES COULD AMOUNT TO AN EYE POPPING ONE HUNDRED BILLION DOLLARS ONE OPTION FOR AETNA IN PROPERTY AND CASUALTY IS TO GET OUT OF SOME LINES OF INSURANCE FOR INSTANCE IT COULD FURTHER DOWNSIZE ITS HOMEOWNERS AND AUTOMOBILE BUSINESS IT IS NOW IN THE PROCESS OF WITHDRAWING FROM THE AUTOMOBILE INSURANCE BUSINESS IN CALIFORNIA SPECULATION ABOUT AETNA SLIMMING DOWN EVEN FURTHER IN PROPERTY AND CASUALTY HEIGHTENED LAST MONTH AFTER THE RESIGINATION OF DAVID KOCHER WHO RAN THE BUSINESS I WOULDN'T BE SURPRISED TO SEE SOME MAJOR CHANGES IN PROPERTY AND CASUALTY BUSINESS SAID NORTHINGTON PARTNERS ANALYST ALICE CORNISH AETNA'S BIGGEST STRENGTH IS ITS INDIVIDUAL LIFE INSURANCE AND ANNUITY OPERATION INCLUDING ITS OVERSEAS BUSINESSES AND ITS HEALTH CARE BUSINESS FOR EXAMPLE THE LIFE AND HEALTH OPERATION EARNED NINETY TWO MILLION DOLLARS IN THE THIRD QUARTER UP FROM EIGHTY EIGHT MILLION DOLLARS A YEAR EARLIER AETNA IS RUMORED TO BE CONSIDERING SPINNING OFF THE BUSINESS TO STOCKHOLDERS IN ORDER TO LET SHAREHOLDERS REALIZE THE FULL VALUE BUT PEOPLE FAMILIAR WITH THE SITUATION SAY AETNA IS UNLIKELY TO MAKE SUCH A MAJOR MOVE A REORGANIZATION AT AETNA WOULD COME JUST WEEKS AFTER MR. COMPTON SET UP A HORSE RACE TO DECIDE WHO WILL SUCCEED HIM WHEN HE RETIRES IN NINETEEN NINETY SEVEN THE CONTENDERS ARE GARY BENANAV WHO HEADS THE COMPANY'S LIFE INSURANCE BUSINESS AND SUCCEEDED MR. KOCHER AS HEAD OF PROPERTY AND CASUALTY INSURANCE DANIEL KEARNEY CHIEF OF INVESTMENTS AND PENSION PRODUCTS AND JAMES MCLANE WHO RUNS AETNA'S HEALTHCARE OPERATION MR. BENANAV FORTY EIGHT YEARS OLD IS BELIEVED TO BE THE FRONT RUNNER CITING MR. COMPTON'S RETIREMENT DATE SANFORD C. BERNSTEIN ANALYST WESTON HICKS SAID MR. COMPTON IS FIGHTING AGAINST THE CLOCK IF HE'S GOING TO DO SOMETHING HE BETTER DO IT QUICK HE SAID AETNA'S PROBLEMS ARE SIMILAR TO THOSE FACED BY THE OTHER MAJOR MULTILINE INSURERS SUCH AS CIGNA CORPORATION TRAVELERSINC.'S TRAVELERS INSURANCE UNIT AND I. T. T. CORPORATION'S HARTFORD INSURANCE GROUP EACH COMPANY HAS SEVERAL STRENGTHS BUT EACH HAS EXPOSURE TO PROBLEMS PARTICULARLY THE OPEN ENDED QUESTION ABOUT HOW BIG ARE THE ULTIMATE LOSSES ON POLLUTION CLAIMS ANALYSTS POINT OUT THAT EACH OF THE COMPANIES HAS A HISTORY OF TRYING TO BE ALL THINGS TO ALL PEOPLE OFFERING EVERY TYPE OF INSURANCE THAT A CUSTOMER COULD POSSIBLY WANT THEY ALSO WORK THROUGH INDEPENDENT AGENTS WHICH GIVES THEM LESS CONTROL AND HIGHER EXPENSES THAN COMPANIES THAT SELL INSURANCE DIRECTLY TO CUSTOMERS SUCH AS STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY AND ALLSTATE CORPORATION A UNIT OF SEARS ROEBUCK AND COMPANY NOWDAYS THE MOST SUCCESSFUL COMPANIES ANALYSTS SAY ARE THOSE THAT SPECIALIZE AND PAY STRICT ATTENTION TO COSTS AMERICAN INTERNATIONAL GROUP INCORPORATED AND CHUBB CORPORATION ARE TWO COMPANIES THAT FIT THE DESCRIPTION CONSULTANTS SAY COMPANIES SUCH AS AETNA NOT TO MENTION THE BIG MUTUAL LIFE INSURERS SUCH AS METROPOLITAN LIFE INSURANCE COMPANY AND PRUDENTIAL INSURANCE COMPANY OF AMERICA TEND TO RESPOND SLOWLY TO COMPETITIVE PRESSURES BECAUSE THEY ARE RICH IN CAPITAL CAPITAL GIVES THEM FLEXIBILITY BUT ALSO MAKES THEM SLOWER TO RESPOND TO CHANGE IF THEY HAVE A TREMENDOUS AMOUNT IN CAPITAL IT MIGHT TAKE FIFTY YEARS TO SHAKE THEM UP SAID ONE INVESTMENT BANKER WHO ASKED NOT TO BE IDENTIFIED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AETNA SHARES CLOSED AT FIFTY FIVE DOLLARS AND FIFTY CENTS DOWN SIXTY TWO POINT FIVE CENTS BODY SHOP INTERNATIONAL P. L. C. SAID SAME STORE U. K. SALES ROSE FOUR PERCENT AND TOTAL SALES ROSE SIX PERCENT IN THE NINE WEEK PERIOD ENDED DECEMBER THE U. K. RETAILER SAID ITS U. S. SHOPS PRODUCED SAME STORE SALES GROWTH OF TEN PERCENT WITH TOTAL SALES UP FORTY SEVEN PERCENT IN THE YEAR TO DATE U. S. SAME STORE SALES HAVE RISEN SIX PERCENT AND TOTAL SALES HAVE GROWN FORTY SIX PERCENT THE ECONOMY IS ROCKING INFLATION SEEMS TO BE REELING AND PRESIDENT CLINTON IS CROWING THAT'S POLITICS BUT IT'S ALSO A REASON TO HEED WAYNE ANGELL AS HE RIDES INTO THE BELTWAY SUNSET MR. CLINTON WILL MISS THIS REAGAN APPOINTEE MORE THAN HE KNOWS FOR EIGHT YEARS MR. ANGELL HAS HELD ONE OF THOSE RARE JOBS THAT MATTER HERE AS A GOVERNOR OF THE FEDERAL RESERVE ALONG THE WAY HE BECAME THE CONSCIENCE OF THE INFLATION HAWKS WHO'VE PRODUCED THE LOW INTEREST RATES NOW SPURRING ECONOMIC GROWTH THEY'VE BEEN SO SUCCESSFUL THAT THE BEAVIS AND BUTT HEAD GENERATION HAS NO IDEA THAT INFLATION DROVE JIMMY CARTER FROM POWER ASSUMING IT'S EVER HEARD OF JIMMY CARTER QUOTE WE'RE SHOWING THE FRUITS OF PURSUING PRICE LEVEL STABILITY QUOTE DECLARES MR. ANGELL IN A FAREWELL INTERVIEW BEFORE HIS TERM EXPIRES NEXT MONTH WE'RE SEEING GAINS IN LABOR PRODUCTIVITY WE HAVEN'T SEEN SINCE THE NINETEEN FIFTIES AND SIXTIES THOSE GAINS IN TURN HERALD REAL WAGE INCREASES THAT CAN GET PRESIDENTS RE ELECTED AT LEAST IN ECONOMICS BILL CLINTON MAY YET PROVE WOODY ALLEN'S MAXIM THAT NINETY PERCENT OF LIFE IS JUST SHOWING UP MR. ANGELL CALLS THE REDUCTION OF CORE INFLATION TO THREE PERCENT TODAY FROM TWELVE PERCENT THE FED'S MAIN ACHIEVEMENT SINCE NINETEEN EIGHTY BACK IN NINETEEN EIGHTY SIX HE TOLD AUDIENCES HIS GOAL WAS TO SEE THIRTY YEAR HOME MORTGAGES REACH SEVEN PERCENT BY THE END OF HIS TENURE THEY THOUGHT THAT WAS UNBELIEVABLE THE FORMER KANSAS WHEAT FARMER RECALLS AFTER CLIMBING TO ALMOST TWELVE PERCENT IN NINETEEN EIGHTY SEVEN MORTGAGES HIT SIX POINT SEVEN FOUR PERCENT LAST OCTOBER OF COURSE CLINTONIANS ATTRIBUTE THIS DECLINE TO DOCTOR BILL'S MIRACLE TAX POTION MR. ANGELL DOESN'T SIP THAT MOONSHINE LET'S SEE HE SAYS THE FEDERAL DEBT IS ABOUT FOUR POINT FIVE TRILLION DOLLARS AND THE NINETEEN NINETY THREE BUDGET CLAIMED TO CUT GROWTH IN THAT DEBT BY A MERE FOUR HUNDRED BILLION DOLLARS OVER FIVE YEARS HOW MUCH DOES IT AFFECT THE INTEREST RATE ON THAT DEBT HE ASKS SARDONICALLY IF THE DEBT WILL GROW ONLY BY ONE TRILLION DOLLARS OVER FIVE YEARS INSTEAD OF ONE POINT FOUR TRILLION DOLLARS NOT MUCH AT ALL WHAT REALLY AFFECTS INTEREST RATES HE ADDS IS THE CREDIBILITY OF THE FEDERAL RESERVE IN PROMISING NOT TO INFLATE THAT DEBT AWAY ON THIS POINT MR. ANGELL DOES GIVE MR. CLINTON CREDIT UNLIKE GEORGE BUSH MR. CLINTON HAS MOSTLY REFRAINED FROM PRODDING THE FED TO GUN THE MONEY SUPPLY THUS INVESTORS FEAR INFLATION LESS AND SO ARE WILLING TO ACCEPT A LOWER INTEREST RATE AS AN INFLATION PREMIUM QUOTE SO THERE WAS MORE CONTRIBUTION BY THE PRESENT ADMINISTRATION BY WHAT IT DIDN'T DO THAN BY WHAT IT DID DO QUOTE HE SAYS MR. ANGELL HAS MADE HIS OWN FED MARK BY PROMOTING A WAY OF SETTING MONETARY POLICY THAT LOOKS MAINLY AT MARKET PRICES HE CALLS IT PRICE LEVEL TARGETING THIS MEANS MORE THAN LOOKING OUT THE REAR VIEW MIRROR AT LAST YEAR'S TWO POINT SEVEN PERCENT INFLATION RATE INSTEAD MR. ANGELL LOOKS AT INDICATORS THAT WARN OF FUTURE INFLATION COMMODITY PRICES EXCHANGE RATES AND ESPECIALLY GOLD THE KANSAN ADMITS THAT AT FIRST THESE IDEAS WERE THOUGHT OF AS A HARE BRAINED SCHEME BUT OVER TIME OTHER FED GOVERNORS BEGAN TO NOTICE CHAIRMAN ALAN GREENSPAN IN PARTICULAR IS KNOWN TO KEEP A BEADY EYE ON GOLD YOU DON'T WANT TO PUT ALL YOUR EGGS IN THE COMMODITY BASKET SAYS FED VICE CHAIRMAN DAVID MULLINS BUT IT'S FAIR TO SAY WE ALL NOW LOOK AT A NUMBER OF THOSE THINGS INCLUDING COMMODITIES AND GOLD JUST HOW MUCH THIS ANGELL LEGACY WILL SURVIVE HIS DEPARTURE IS HARD TO READ I'M OPTIMISTIC MR. ANGELL SAYS BUT I'M NOT AS CONFIDENT AS I WOULD LIKE TO BE PERHAPS THIS IS BECAUSE MOST OF LAST YEAR HE FLASHED A WARNING ABOUT FUTURE INFLATION YET THE FED HASN'T TRIED TO HEAD IT OFF BY RAISING INTEREST RATES EVEN A BLIP MR. ANGELL THINKS LOW OIL PRICES MAY BE SENDING BETTER INFLATION SIGNALS THAN ARE WARRANTED BY OTHER PRICES SO MR. ANGELL DISSENTED FOUR TIMES FROM FED POLICY LAST YEAR INCLUDING A CLARION CALL AT HIS FINAL MEETING IN LATE DECEMBER MR. ANGELL WON'T CONFIRM THIS STILL SECRET DECEMBER VOTE BUT HE DOES SAY HE'S WORRIED THAT QUOTE THE NINETEEN NINETY FIVE PRICE LEVEL IS INCREASINGLY GETTING OUT OF OUR CONTROL QUOTE HE OFFERS A LAYMAN'S INFLATION GUIDE IF SHORT TERM RATES RISE NO HIGHER THAN FIVE PERCENT FROM THREE PERCENT NOW AT THE PEAK OF THIS ECONOMIC EXPANSION THEN THAT'S AN A GRADE FOR THE FED BUT IF HIS WORRIES PROVE TRUE THEN INTEREST RATES COULD RISE MUCH HIGHER IN NINETEEN NINETY FIVE THE WORST POSSIBLE TIME FOR BILL CLINTON'S REELECTION ANOTHER REASON TO WORRY IS MR. ANGELL'S APPARENT REPLACEMENT GEORGE PERRY OF THE BROOKINGS INSTITUTION IF MR. ANGELL IS A HAWK THEN MR. PERRY IS A DOVE MR. ANGELL WATCHES GOLD MR. PERRY SCOFFS AT IT MR. ANGELL HAS BEEN A BANKER AND FARMER MR. PERRY IS A LIFETIME ACADEMIC MR. PERRY BELIEVES IN THE OLD ELIXIR OF TIGHT FISCAL POLICY TAX INCREASES OFFSET BY EASIER WHICH CAN BECOME INFLATIONARY MONEY THIS IS WHAT GAVE US THE NINETEEN SEVENTIES IN POLITICS IT PAYS TO BE LUCKY AND BILL CLINTON'S BEST BLINDEST LUCK HAS BEEN TO INHERIT A CONSERVATIVE FEDERAL RESERVE THE FED'S CREDIBILITY HARD WON SINCE THE DEBACLE OF THE NINETEEN SEVENTIES HAS HELPED TO BLUNT FEARS THAT MR. CLINTON WOULD BE ANOTHER JIMMY CARTER BUT THE PERRY CHOICE SUGGESTS MR. CLINTON DOESN'T KNOW HOW GOOD HE'S HAD IT LET'S HOPE THE OTHER FED GOVERNORS HAVE ABSORBED ENOUGH OF MR. ANGELL'S ANTI INFLATION CHARACTER TO REMIND THE PRESIDENT IN AN INDEPENDENT INVESTIGATION OF THE WHITEWATER MESS THE PURPOSE HAS TO BE REASSURANCE THAT NO MAJOR SCANDAL LIES HIDDEN AUDITING FINANCIAL DEALS FROM NINETEEN EIGHTY FIVE WILL NOT BE ENOUGH THE TEST OF A SERIOUS PROBE WILL BE DOES IT ILLUMINATE EVENTS SURROUNDING VINCENT FOSTER'S DEATH LAST JULY TWENTIETH WE SUGGESTED THIS SAME INVESTIGATION IMMEDIATELY AFTER THE APPARENT SUICIDE OF THE DEPUTY WHITE HOUSE COUNSEL AND CLINTON FRIEND OF COURSE AND WERE CASTIGATED FOR CRUELTY TOWARD THE DECEASED AND THE PRESIDENCY EVEN LAST WEEK WHITE HOUSE STONEWALLER PAUL BEGALA COMPLAINED ABOUT TRYING QUOTE TO POLITICIZE THE TRAGIC DEATH OF A TALENTED PUBLIC SERVANT QUOTE AS NIGHT FOLLOWS DAY THIS MEANS THE FOSTER TRAGEDY DEMANDS INVESTIGATION ABOVE ALL REVELATIONS ABOUT THE HANDLING OF MR. FOSTER'S OFFICE PAPERS REMEMBER IS WHAT BROUGHT WHITEWATER TO A BOIL THE SHIFTING EXPLANATIONS OF THE FOSTER EVENTS DISPLAY THE SAME GAMES WITH THE TRUTH THAT IS THE HEART OF THE PRESENT WIDESPREAD CONCERN UNTIL THE FOSTER DEATH IS SERIOUSLY STUDIED A BANQUO'S GHOST WILL STALK NOT ONLY THE INDEPENDENT INVESTIGATION BUT THE NEXT THREE YEARS OF THE CLINTON ADMINISTRATION BY NOW OF COURSE WE KNOW THAT MR. FOSTER WAS WORKING ON WHITEWATER SHORTLY BEFORE HIS DEATH HE HAD SERVED AS THE CLINTONS' LAWYER WHEN IN DECEMBER NINETEEN NINETY TWO THEY SEVERED THEIR TIES WITH WHITEWATER DEVELOPMENT COMPANY BY SELLING THEIR INTEREST TO JAMES MCDOUGAL FOR ONE THOUSAND DOLLARS MR. FOSTER ALSO DIRECTED THE PREPARATION OF DELINQUENT TAX RETURNS FOR WHITEWATER ITSELF WHICH HE DELIVERED TO MR. MCDOUGAL'S LAWYER LAST JUNE TWENTY FIRST THIS WAS PART OF MR. FOSTER'S MORE GENERAL WORK ON THE CLINTON FINANCES HE WAS PREPARING A BLIND TRUST FOR THEIR ASSETS A TRUST AGREEMENT WAS FINALIZED THREE DAYS AFTER HIS DEATH SINCE OTHER RECENT PRESIDENTS HAVE COMPLETED SUCH TRUSTS PRIOR TO INAUGURATION THIS DELAY WAS THE SUBJECT OF EDITORIAL CRITICISM BY A NUMBER OF PUBLICATIONS THE DES MOINES REGISTER FOR EXAMPLE WROTE THAT MRS. CLINTON'S HEALTH CARE STOCKS SHOULD HAVE BEEN PUT IN TRUST DENNIS RYERSON EDITOR OF THE REGISTER'S EDITORIAL PAGES TELLS US HE RECEIVED A POLITE PHONE CALL FROM MR. FOSTER ELABORATING REASONS FOR DELAY IT'S DOUBTFUL THAT THE FOSTER FILES WILL BE A ROSETTA STONE FOR WHITEWATER IF ONLY BECAUSE MANY ESSENTIAL FILES WERE KNOWN TO BE MISSING AS EARLY AS THE FIRST STORIES BY JEFF GERTH OF THE NEW YORK TIMES DURING THE NINETEEN NINETY TWO CAMPAIGN MR. MCDOUGAL SAYS AND THE CLINTONS DENY THAT THE MISSING FILES WERE DELIVERED TO THE ARKANSAS GOVERNOR'S MANSION STILL THE HANDLING OF THE FOSTER FILES WOULD EXCITE THE INTEREST OF ANY RESPONSIBLE INVESTIGATOR THE WHITE HOUSE SAYS THAT AFTER A JULY TWENTY SECOND REVIEW BY WHITE HOUSE COUNSEL BERNARD NUSSBAUM FILES ON THE FIRST COUPLE WERE SENT TO THEIR PRIVATE LAWYER FOSTER'S PERSONAL PAPERS TO HIS FAMILY'S LAWYER AND ITEMS PERTAINING TO HIS OFFICIAL DUTIES WERE SHOWN TO INVESTIGATORS PROBING HIS DEATH BUT IT'S BEEN WIDELY REPORTED MOST RECENTLY IN YESTERDAY'S NEW YORK TIMES THAT THE WHITEWATER PAPERS WERE REMOVED ON JULY TWENTIETH NOT JULY TWENTY SECOND ROBERT LANGSTON CHIEF OF THE PARK POLICE INVESTIGATING THE DEATH WAS QUOTED TO THIS EFFECT AS EARLY AS AUGUST TENTH HIS PRESS SPOKESMAN TOLD THE TIMES THAT EITHER MR. NUSSBAUM OR AN ASSISTANT HAD REMOVED A CARTON OF FILES AND LATER RETURNED IT I DON'T HAVE ANY IDEA WHETHER THEY WERE ALL BROUGHT BACK OR NOT I COULD ONLY TRUST THAT THEY WERE BUT I WOULD NEVER BET MONEY ON IT OR SAY FOR SURE THE WHITE HOUSE HAS NOW CONFIRMED THAT CONTRARY TO INITIAL SUGGESTIONS AT LEAST THREE PEOPLE VISITED MR. FOSTER'S OFFICE WITHIN HOURS OF HIS DEATH MR. NUSSBAUM MAGGIE WILLIAMS AND PATSY THOMASSON MS. WILLIAMS IS CHIEF OF STAFF TO MRS. CLINTON WHO WAS AT THE TIME IN LITTLE ROCK AND MISS THOMASSON IS A SPECIAL ASSISTANT TO THE PRESIDENT THE ACCOUNTS DO NOT MAKE CLEAR WHETHER THE VISITS WERE SEPARATE OR IN CONJUNCTION THE WASHINGTON TIMES HAS DETAILED THE BACKGROUNDS OF THE TWO ADDITIONAL AIDES MS. WILLIAMS HAD BEEN COMMUNICATIONS DIRECTOR AT THE CHILDREN'S DEFENSE FUND AND PRESS DEPUTY AT THE DEMOCRATIC NATIONAL COMMITTEE MISS THOMASSON A LONGTIME ARKANSAS POLITICAL FIGURE WAS ONCE EXECUTIVE VICE PRESIDENT AT LASATER AND COMPANY WHICH EARNED SOME ONE POINT SIX MILLION DOLLARS IN COMMISSIONS FOR HANDLING ARKANSAS STATE BOND ISSUES THE STATE CONTRACTS WERE AWARDED WHILE DAN R. LASATER HEAD OF THE FIRM AND A HEAVY FINANCIAL CONTRIBUTOR TO CLINTON CAMPAIGNS WAS UNDER INVESTIGATION FOR COCAINE DISTRIBUTION HE WAS CONVICTED AND SENTENCED TO THIRTY MONTHS IN PRISON IN NINETEEN EIGHTY SIX AN UNINDICTED CO CONSPIRATOR WAS ROGER CLINTON THE PRESIDENT'S BROTHER AND A LASATER EMPLOYEE WHO PLEADED GUILTY IN AN EARLIER COCAINE CASE MISS THOMASSON WASN'T IMPLICATED IN THE DRUG CASES AND GOVERNOR CLINTON NAMED HER TO THE POLITICALLY POWERFUL POST OF CHAIRMAN OF THE ARKANSAS HIGHWAY COMMISSION AS THE EARLIEST REPORTS CONCEDED THE OFFICE WAS ALSO VISITED THE NEXT MORNING BY A SECRETARY EITHER MR. FOSTER'S OR MR. NUSSBAUM'S THERE IS ALSO CONTROVERSY OVER OTHER FOSTER PAPERS INCLUDING A DIARY INVESTIGATORS INITIALLY EXAMINED BRIEFLY AND WOULD LIKE TO STUDY IN MORE DETAIL MR. FOSTER'S DEATH AND ACCOMPANYING EVENTS CAME AT A CURIOUS JUNCTURE IN THE CLINTON ADMINISTRATION THE ZOE BAIRD AND KIMBA WOOD NOMINATIONS HAD COLLAPSED DAVID GERGEN HAD JOINED THE ADMINISTRATION ON MAY TWENTY NINTH MR. FOSTER WAS INVOLVED IN LITIGATION OVER THE SECRECY OF THE FIRST LADY'S HEALTH TASK FORCE THE WHITE HOUSE REPORT ON THE TRAVEL OFFICE FIASCO WAS ISSUED JULY SECOND IN THE HOLIDAY LULL BUT CONGRESSMAN JACK BROOKS SUGGESTED AN INVESTIGATION MR. FOSTER SOUGHT A PERSONAL LAWYER AND A LENGTHY NEW YORK TIMES REPORT SAID HE TOLD HIS WIFE THEY MIGHT BE BETTER OFF IN LITTLE ROCK ON HIS WAY BACK FROM A VACATION IN HAWAII PRESIDENT CLINTON SPENT THE JULY SEVENTEENTH TO EIGHTEEN WEEKEND IN LITTLE ROCK HIS ITINERARY THERE SO CURIOUS IT WAS RECORDED IN A PAGE ONE STORY IN THE NEW YORK TIMES ON MONDAY JULY NINETEENTH INCLUDED A FOUR HOUR DINNER WITH DAVID EDWARDS A FRIEND FROM HIS TIME IN ENGLAND AND NOW A LITTLE ROCK INVESTMENT ADVISER MR. EDWARDS IS KNOWN FOR HIS GOURMET COOKING AND ARAB CONNECTIONS HAVING BEEN INSTRUMENTAL IN A TWENTY THREE MILLION DOLLAR CONTRIBUTION FROM THE KING OF SAUDI ARABIA TO ESTABLISH A MIDDLE EASTERN STUDIES PROGRAM AT THE UNIVERSITY OF ARKANSAS BEFORE SETTING UP HIS OWN FIRM WITH HIS BROTHER HE'D WORKED FOR STEPHENS INCORPORATED AND BEFORE THAT HAD BEEN A CONTROVERSIAL JUNIOR EXECUTIVE IN THE EUROPEAN OPERATIONS OF CITIBANK THAT MONDAY THE PRESIDENT SPOKE TO MR. FOSTER FOR TWENTY MINUTES THE WHITE HOUSE SAYS THE DEPUTY COUNSEL DECLINED THE PRESIDENT'S INVITATION TO A MOVIE IN THE FAMILY QUARTERS THE PRESIDENT HAS SAID THAT AT THE TIME OF THE CALL HE WAS NOT REALLY AWARE THAT SOME OF MR. FOSTER'S ASSOCIATES HAD COME TO CONSIDER HIM QUITE DISTRESSED MR. FOSTER HAD SPENT THE WEEKEND AT THE MARYLAND SHORE WITH HIS WIFE FOR MOST OF SATURDAY AND SUNDAY THEY JOINED WITH TWO OTHER COUPLES ASSOCIATE ATTORNEY GENERAL AND FORMER ROSE PARTNER WEBSTER HUBBELL AND FORMER DEPUTY WHITE HOUSE COUNSEL MICHAEL CARDOZO AND THEIR WIVES MR. HUBBELL JOINED THE GATHERING AFTER A SATURDAY MORNING MEETING TO FIRE WILLIAM SESSIONS AS DIRECTOR OF THE F. B. I. ON TUESDAY THE DAY OF MR. FOSTER'S DEATH THE WHITE HOUSE ANNOUNCED THE APPOINTMENT OF LOUIS FREEH AS F. B. I. DIRECTOR THE SAME DAY BACK IN LITTLE ROCK THE CHICAGO TRIBUNE REPORTED A FEDERAL MAGISTRATE ISSUED A SEARCH WARRANT FOR THE OFFICES OF DAVID HALE WHO LATER TRIED TO PLEA BARGAIN BY IMPLICATING THE PRESIDENT IN A SUSPECT LOAN THUS REOPENING THE WHITEWATER ISSUE DENVER LAWYER JAMES LYONS WHOSE REPORT PUT THE ISSUE TO REST DURING THE CAMPAIGN TOLD THE TRIBUNE HE'D TALKED SEVERAL TIMES TO MR. FOSTER SHORTLY BEFORE HIS DEATH BUT DENIED IT WAS ABOUT WHITEWATER THE WASHINGTON TIMES HAS REPORTED THAT MR. FOSTER'S PHONE LOGS ON THE MORNING OF HIS DEATH INCLUDE CALLS FROM MR. LYONS AND FROM SOMEONE AT THE ROSE LAW FIRM IN LITTLE ROCK ON JULY TWENTY SIXTH NEARLY A WEEK AFTER THE DEATH A MEMBER OF THE COUNSEL'S OFFICE FOUND TORN UP SCRAPS APPARENTLY OVERLOOKED IN AN EARLIER SEARCH AT THE BOTTOM OF MR. FOSTER'S BRIEFCASE THEY ARE PIECED TOGETHER INTO A NOTE LISTING A SERIES OF THINGS TROUBLING MR. FOSTER ONLY ONE SMUDGED PALM PRINT WAS FOUND ON THE PAPER AND IT WAS HELD THIRTY HOURS BY THE WHITE HOUSE BEFORE OFFICIAL INVESTIGATORS WERE NOTIFIED THE NOTE COMPLAINED THAT W. S. J. EDITORS LIE WITHOUT CONSEQUENCE AND SPECIFIED CONTROVERSIES SUCH AS EXPENSES FOR REDECORATING THE WHITE HOUSE BUT CONTAINED NO ALLUSION TO WHITEWATER LET US SPECIFY LEST COMPILING THESE FACTS GETS US ACCUSED OF THE DREAD CRIME OF INNUENDO THAT WE DO NOT KNOW WHAT TO MAKE OF ALL THIS BUT WE DO THINK IT'S HIGH TIME SOMEONE FOUND OUT WE ALSO THINK THAT BACK ON JULY TWENTY FIRST WHEN PRESIDENT CLINTON SAID QUOTE WE'LL JUST HAVE TO LIVE WITH SOMETHING ELSE WE CAN'T UNDERSTAND QUOTE HE ALREADY KNEW A GREAT DEAL THAT YOU PROBABLY HAVE JUST LEARNED THE MUNICIPAL SECURITIES RULE MAKING BOARD FINALLY UNVEILED ITS PROPOSED RULE TO END QUOTE PAY TO PLAY QUOTE POLITICAL GIFTS BY MUNICIPAL BOND DEALERS AND DEPICTED THE CONTROVERSIAL RULE AS IMMUNE FROM CONSTITUTIONAL CHALLENGE THE BOARD WISHES TO SEVER ANY CONNECTION BETWEEN CONTRIBUTIONS AND MUNICIPAL SECURITIES BUSINESS THE M. S. R. B. SAID IN ITS FILING WITH THE SECURITIES AND EXCHANGE COMMISSION IT SAID PROBLEMS ASSOCIATED WITH POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS UNDERMINE INVESTOR CONFIDENCE IN THE MUNICIPAL SECURITIES MARKET THE M. S. R. B. A SELF REGULATORY BODY SUBJECT TO S. E. C. OVERSIGHT SAID IT BELIEVES THERE HAVE BEEN NUMEROUS INSTANCES WHERE DEALERS HAVE WON BUSINESS BASED ON THEIR POLITICAL CONTRIBUTIONS THE S. E. C. WHICH MUST APPROVE THE RULE BEFORE IT GOES INTO EFFECT WILL ASK FOR PUBLIC COMMENTS FOR TWENTY ONE DAYS AFTER THE PROPOSAL IS PUBLISHED IN THE FEDERAL REGISTER AN S. E. C. SPOKESWOMAN SAID S. E. C. CHAIRMAN ARTHUR LEVITT COMMENDED THE BOARD FOR ITS WORK AND SAID HE LOOKS FORWARD TO REVIEWING THE RULE AND PUBLIC RESPONSE TO IT THE S. E. C.'S FAST TRACK COMMENT PERIOD ANGERED CRITICS OF THE PROPOSED RULE MILTON WELLS DIRECTOR OF FEDERAL RELATIONS FOR THE NATIONAL ASSOCIATION OF STATE TREASURERS CALLED A TWENTY ONE DAY COMMENT PERIOD TOTALLY INSUFFICIENT GIVEN THE SERIOUSNESS OF THE CONSTITUTIONAL AND OTHER QUESTIONS POSED BY THE PROPOSED RULE THE RULE WOULD BAR A DEALER FROM DOING BUSINESS WITH A BOND ISSUING JURISDICTION WITHIN TWO YEARS AFTER ANY CONTRIBUTION IS MADE TO OFFICIALS OF THE JURISDICTION THE RULE COVERS CONTRIBUTIONS BY THE DEALER BY ANY OF ITS MUNICIPAL FINANCE PROFESSIONALS OR BY ANY POLITICAL ACTION COMMITTEE CONTROLLED BY THE DEALER OR ITS MUNI PROFESSIONALS AN EXCEPTION WOULD ALLOW MUNI PROFESSIONALS TO CONTRIBUTE UP TO TWO HUNDRED FIFTY DOLLARS TO CANDIDATES IN RACES WHERE THEY CAN VOTE IT WOULD COVER GIFTS MADE ON OR AFTER APRIL FIRST NINETEEN NINETY FOUR ITALY'S LONG MARCH TOWARD POLITICAL RENEWAL APPEARED TO CLEAR ITS LAST HURDLE AS PRIME MINISTER CARLO CIAMPI OFFERED HIS RESIGNATION YESTERDAY PAVING THE WAY FOR EARLY GENERAL ELECTIONS MR. CIAMPI FORMER GOVERNOR OF THE BANK OF ITALY AND THE COUNTRY'S FIRST NONPOLITICAL PREMIER SUBMITTED HIS RESIGNATION TO PRESIDENT OSCAR LUIGI SCALFARO A DAY AFTER PARLIAMENT BEGAN DEBATE ON A NO CONFIDENCE MOTION ON HIS EIGHT MONTH OLD GOVERNMENT THE PRIME MINISTER SEVENTY THREE YEARS OLD WAS APPOINTED IN APRIL AS A CRISIS MANAGER TO OVERSEE POLITICAL AND ECONOMIC REFORM AFTER THE COUNTRY'S DRAMATIC CORRUPTION SCANDAL CRIPPLED THE NEARLY HALF CENTURY RULE OF THE GOVERNING COALITION LED BY THE CHRISTIAN DEMOCRATS MR. CIAMPI TOLD THE CHAMBER OF DEPUTIES ON WEDNESDAY THAT HE WAS READY TO STEP ASIDE NOW THAT HIS GOVERNMENT HAD ACCOMPLISHED ITS ORIGINAL GOALS OF COMPLETING ELECTORAL REFORM AND PASSING THIS YEAR'S BUDGET POLITICAL COMMENTATORS SAID MR. SCALFARO IS LIKELY TO DISSOLVE PARLIAMENT OVER THE WEEKEND AND ASK MR. CIAMPI TO CONTINUE AS CARETAKER PREMIER UNTIL ELECTIONS WHICH COULD COME AS EARLY AS MARCH TWENTY SEVENTH ALTHOUGH THE PRESIDENT ALSO COULD REJECT MR. CIAMPI'S RESIGNATION OFFER MR. SCALFARO REPEATEDLY HAS STRESSED THAT NEW ELECTIONS WOULD BE CALLED ONCE LEGISLATION REFORMING THE ELECTORAL SYSTEM WAS COMPLETED PARLIAMENT APPROVED SUCH A MEASURE IN LATE DECEMBER MR. CIAMPI WHO CONSIDERED HIS JOB TRANSITIONAL FROM THE OUTSET WAS CONSIDERED A FIGURE OF STABILITY DURING ITALY'S CONVULSIVE POLITICAL SCANDALS AND REVELED IN HIS ROLE AS THE COUNTRY'S FIRST TECHNOCRAT PREMIER QUOTE I WORK HERE IN THE SAME MANNER I WORKED AT THE BANK OF ITALY WITHOUT THE DISTRACTIONS OF POLITICAL ALCHEMY QUOTE HE SAID IN AN INTERVIEW LAST YEAR HE HAD BEEN APPLAUDED BY THE INTERNATIONAL FINANCIAL COMMUNITY FOR HIS EFFORTS TO TRIM THE COUNTRY'S BALLOONING BUDGET DEFICIT ACCELERATE ITS LONG STALLED PRIVATIZATION PROGRAM AND COMPLETE VITAL ELECTORAL REFORM LEGISLATION OPPOSITION PARTIES LED BY RADICAL MARCO PANELLA HAD PROPOSED THE NO CONFIDENCE MOTION AS A MEANS OF SPEEDING THE PROCESS OF DISSOLVING PARLIAMENT AND CALLING NEW ELECTIONS MR. PANELLA WITHDREW THE MOTION YESTERDAY BUT MR. CIAMPI NEVERTHELESS DECIDED TO OFFER HIS RESIGNATION THE OPPOSITION PARTIES THE FORMER COMMUNISTS NOW KNOWN AS THE DEMOCRATIC PARTY OF THE LEFT THE FEDERALIST NORTHERN LEAGUE AND THE NEOFASCIST ITALIAN SOCIAL MOVEMENT HAVE BEEN CLAMORING FOR EARLY ELECTIONS AFTER MUNICIPAL VOTING LAST MONTH DEMONSTRATED A TOTAL COLLAPSE OF SUPPORT FOR THE FORMER RULING PARTIES ALL ITALIANS WANT ELECTIONS AS QUICKLY AS POSSIBLE NORTHERN LEAGUE LEADER UMBERTO BOSSI SAID THURSDAY TO DRAG ALONG THE PRESENT LEGISLATURE WOULD MEAN GOING TOWARD A QUARRELSOME AGONY SAID MASSIMO D'ALEMA A LEADER OF THE FORMER COMMUNISTS MIRED IN THE CORRUPTION SCANDAL THE CENTRIST CHRISTIAN DEMOCRATS AND THEIR COALITION PARTNERS ARE EXPECTED TO SUFFER SIGNIFICANT LOSSES IN THE NATIONAL VOTE BUT THE POLITICAL LANDSCAPE REMAINS HIGHLY CONFUSED NEW ELECTORAL LAWS PASSED AFTER THE SUCCESS OF A POPULAR REFERENDUM LAST APRIL CALL FOR SEVENTY FIVE PERCENT OF PARLIAMENT TO BE ELECTED THROUGH DIRECT ELECTIONS WHILE THE REMAINING QUARTER WILL BE ELECTED THROUGH THE OLD PROPORTIONAL REPRESENTATION SYSTEM IN WHICH A PARTY IS ALLOCATED SEATS BASED ON ITS TALLY AS A RESULT POLITICAL PARTIES HAVE BEEN MADLY JOCKEYING TO FORM NEW ALLIANCES ABLE TO REACH A MAJORITY UNDER THE NEW SYSTEM THERE'S MORE GOOD NEWS ON HEALTH COSTS BOTH PRIVATE AND PUBLIC MEDICAL SPENDING APPEARS TO BE MODERATING FEDERAL OFFICIALS NOW CALCULATE THAT THE GOVERNMENT'S TWO BIG BUDGET BUSTING HEALTH PROGRAMS MEDICARE AND MEDICAID WILL COST ABOUT FORTY FIVE BILLION DOLLARS LESS OVER THE NEXT FIVE FISCAL YEARS THAN THEY PROJECTED IN THE FALL AND THE BUREAU OF LABOR STATISTICS SAYS MEDICAL CARE PRICES ROSE JUST FIVE POINT FOUR PERCENT LAST YEAR THE SMALLEST INCREASE SINCE NINETEEN SEVENTY THREE THOUGH STILL TWICE THE OVERALL INFLATION RATE WHILE THE TEMPERING OF HEATH SPENDING IS WELCOME SOME PEOPLE IN THE CLINTON ADMINISTRATION AND ON CAPITOL HILL WORRY THAT IT COULD TAKE AWAY SOME OF THE POLITICAL MOMENTUM FOR OVERHAULING THE U. S. HEALTH SYSTEM ALREADY SOME REPUBLICANS ARE ARGUING THAT THERE ISN'T A QUOTE HEALTH CRISIS QUOTE IN THE U. S. A VIEW ECHOED LAST WEEKEND BY SENATOR DANIEL PATRICK MOYNIHAN THE NEW YORK DEMOCRAT WHO HEADS THE SENATE FINANCE COMMITTEE THE GOVERNMENT NOW EXPECTS TO SPEND ABOUT TWENTY BILLION DOLLARS LESS ON MEDICARE BETWEEN FISCAL NINETEEN NINETY FIVE AND TWO THOUSAND ACCORDING TO AN ADMINISTRATION OFFICIAL SPENDING FOR MEDICARE THE FEDERAL HEALTH INSURANCE PROGRAM FOR ELDERLY AND DISABLED AMERICANS CURRENTLY TOTALS ABOUT ONE HUNDRED FIFTY BILLION DOLLARS A YEAR THE REDUCTION IS LARGELY DUE TO LOWER THAN EXPECTED PAYMENTS TO PHYSICIANS TWO YEARS AGO WHEN MEDICARE STARTED SETTING FEES FOR DOCTORS FEDERAL HEALTH OFFICIALS PROJECTED MANY PHYSICIANS WOULD INCREASE THEIR VOLUME OF SERVICES IN ORDER TO MAKE UP FOR LOWER REIMBURSEMENT RATES BUT MEDICARE OFFICIALS NOW SAY VOLUME HASN'T INCREASED NEARLY AS MUCH AS THEY ANTICIPATED ADMINISTRATION OFFICIALS ALSO PROJECT THAT FEDERAL SPENDING ON MEDICAID THE FEDERAL STATE HEALTH INSURANCE PROGRAM FOR THE POOR WILL BE ABOUT TWENTY FIVE BILLION DOLLARS LOWER THAN PROJECTED FOR THE PERIOD THE FEDERAL GOVERNMENT SPENDS ABOUT NINETY BILLION DOLLARS ON MEDICAID EACH YEAR OFFICIALS ATTRIBUTE THE SAVINGS LARGELY TO STATE EFFORTS TO REIN IN MEDICAID COSTS AND ALSO TO A LEVELING OF MEDICAID ENROLLMENT DUE TO A PICKUP IN THE ECONOMY THE NEW COST PROJECTIONS WILL BE CONTAINED IN THE FISCAL NINETEEN NINETY FIVE BUDGET PRESIDENT CLINTON PLANS TO SUBMIT TO CONGRESS IN EARLY FEBRUARY THE LABOR DEPARTMENT SAID MEDICAL CARE PRICES ROSE AT A FOUR POINT FOUR PERCENT ANNUAL PACE IN THE FOURTH QUARTER MEDICAL CARE PRICE INFLATION AS MEASURED BY THE GOVERNMENT HAS FALLEN FROM NINE POINT SIX PERCENT IN NINETEEN NINETY TO SEVEN POINT NINE PERCENT IN NINETEEN NINETY ONE TO SIX POINT SIX PERCENT IN NINETEEN NINETY TWO ALTHOUGH SOME ECONOMISTS SAY THE BUREAU'S MEASURE OF HEALTH PRICES IS FLAWED CORPORATE HEALTH CARE OFFICIALS AND ANALYSTS AGREE THAT PRICE INCREASES HAVE SLOWED BY FOCUSING ATTENTION ON HEALTH CARE COSTS ANALYSTS SAY PRESIDENT AND MRS. CLINTON MAY BE DISCOURAGING THE INDUSTRY FROM PUSHING UP PRICES AT THE SAME TIME CORPORATE AND GOVERNMENT EFFORTS TO RESTRAIN HEALTH CARE COST INCREASES FINALLY MAY BE BEARING FRUIT THE GOVERNMENT'S INDEX OF MEDICAL CARE COMMODITIES WHICH INCLUDES PRESCRIPTION DRUGS AND SUPPLIES ROSE THREE POINT ONE PERCENT IN NINETEEN NINETY THREE COMPARED WITH FIVE POINT TWO PERCENT IN NINETEEN NINETY TWO CHARGES FOR DOCTORS' AND OTHER PROFESSIONAL SERVICES WERE UP FOUR POINT FIVE PERCENT COMPARED WITH FIVE POINT SEVEN PERCENT IN NINETEEN NINETY TWO AND HOSPITAL CHARGES WERE UP SEVEN POINT SIX PERCENT COMPARED WITH EIGHT POINT EIGHT PERCENT IN NINETEEN NINETY TWO IF A NEW AGE OF LOW INFLATION IS AT HAND AND IT APPEARS TO BE IT MAY TAKE SOME GETTING USED TO FOR THE PAST QUARTER CENTURY AMERICAN ECONOMIC DECISION MAKING HAS HINGED ON A BELIEF THAT INFLATION JUST HAPPENS BUSINESSES DEPENDED ON PRICE INCREASES TO KEEP PROFIT MARGINS GROWING YOUNG FAMILIES BOUGHT HOUSES THEY COULDN'T AFFORD WITH THE SURE KNOWLEDGE THAT THEY COULD QUOTE GROW INTO QUOTE THE MONTHLY MORTGAGE PAYMENTS AS INFLATION LIFTED THEIR WAGES SOME INVESTORS HELD ONTO ASSETS BECAUSE SELLING THEM MEANT PAYING TAXES ON PROFITS THAT WHEN CORRECTED FOR INFLATION DIDN'T EXIST WORKERS FELT RICHER BECAUSE THEIR PAYCHECKS LOOKED LARGER EVERY YEAR EVEN IF THEY DIDN'T ALWAYS KEEP UP WITH PRICES NO LONGER FURNITURE MAKER ETHAN ALLEN INCORPORATED HASN'T RAISED PRICES IN THREE YEARS AND HASN'T ANY PLANS TO DO SO DESPITE GROWING DEMAND FOR ITS PRODUCTS WE HAVE GONE THE OTHER WAY OUR AVERAGE PRICE IS DOWN ABOUT FIFTEEN PERCENT FROM THREE TO FIVE YEARS AGO SAYS CHAIRMAN M. FAROOQ KATHWARI THE DANBURY CONNECTICUT COMPANY HASN'T ANY CHOICE BECAUSE OF COMPETITION AND TO KEEP PROFIT MARGINS GROWING HE SAYS THE COMPANY HAS TURNED TO SIMPLER DESIGNS AND TECHNOLOGY EFFICIENCIES WITH LOW INFLATION RATES FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN OBSERVES HOPEFULLY BUSINESSES SEEKING TO INCREASE THEIR PROFIT MARGINS CAN DO SO ONLY BY ENHANCING EFFICIENCY THE U. S. INFLATION OUTLOOK IS AS PROMISING AS IT HAS BEEN IN DECADES AND THAT IS GOING TO CHANGE THE CALCULUS OF ECONOMIC LIFE FOR WORKERS HOME BUYERS AND OTHER CONSUMERS WITH INFLATION RUNNING BELOW THREE PERCENT A YEAR A THREE POINT FIVE PERCENT RAISE MAY ACTUALLY BE WORTH MORE BUT FEEL WORSE THAN THE FOUR POINT FIVE PERCENT RAISES OF YESTERYEAR WHEN INFLATION WAS HIGHER PSYCHOLOGICALLY THERE IS A DEPRESSING EFFECT ON WORKERS WHEN THEY GET ONLY A SMALL INCREASE SAYS GORDON BREHM EXECUTIVE ASSISTANT AT THE UNITED PAPERWORKERS INTERNATIONAL UNION THE ECONOMY HAS BEEN RECOVERING FROM RECESSION FOR ALMOST THREE YEARS AND APPEARS TO HAVE GROWN AT BETTER THAN A FOUR PERCENT ANNUAL RATE IN THE FOURTH QUARTER YET PRESSURE TO PUSH UP PRICES IS NEGLIGIBLE THE BUREAU OF LABOR STATISTICS SAID YESTERDAY THAT CONSUMER PRICES INCREASED JUST TWO POINT SEVEN PERCENT LAST YEAR THE SMALLEST INCREASE SINCE SLUMPING OIL PRICES DROVE DOWN INFLATION IN NINETEEN EIGHTY SIX EXCLUDING OFTEN VOLATILE FOOD AND ENERGY PRICES AS ECONOMISTS FREQUENTLY DO TO GAUGE THE UNDERLYING RATE OF INFLATION CONSUMER PRICES WERE UP THREE POINT TWO PERCENT THE LAST TIME THIS MEASURE OF INFLATION WAS SO LOW RICHARD NIXON WAS PRESIDENT EVEN HEALTH CARE PRICES THE INFLATIONARY BUGABOO FOR DECADES ARE BEHAVING BETTER RISING FIVE POINT FOUR PERCENT LAST YEAR LESS THAN ANY YEAR SINCE NINETEEN SEVENTY THREE THE LABOR DEPARTMENT ALSO SAID CONSUMER PRICES INCHED UP ZERO POINT TWO PERCENT IN DECEMBER THE SAME AS IN NOVEMBER A ONE POINT ONE PERCENT TUMBLE IN ENERGY PRICES HELPED KEEP OVERALL INFLATION IN CHECK BUT EVEN EXCLUDING THE FOOD AND ENERGY SECTORS PRICES ROSE JUST ZERO POINT THREE PERCENT LAST MONTH APPAREL PRICES DIPPED ZERO POINT SEVEN PERCENT SUGGESTING MORE THAN THE USUAL HOLIDAY DISCOUNTING AND TRANSPORTATION PRICES FELL ZERO POINT TWO PERCENT MAINLY BECAUSE OF BIG CUTS IN GASOLINE PRICES MEDICAL AND ENTERTAINMENT PRICES POSTED MODEST GAINS GROSS WEEKLY EARNINGS OF U. S. WORKERS WERE UNCHANGED IN DECEMBER AFTER ADJUSTING FOR INFLATION AFTER RISING ZERO POINT TWO PERCENT IN NOVEMBER WHILE HOURLY EARNINGS WENT UP ZERO POINT TWO PERCENT THE PREVAILING WISDOM AMONG ECONOMISTS IS THAT THE ECONOMY WILL GROW AT ABOUT A THREE PERCENT PACE THIS YEAR BUT THAT INFLATION WON'T ACCELERATE IN THE PAST PEOPLE HAVE TENDED TO ASSUME THAT A PICKUP IN GROWTH INEVITABLY BROUGHT WITH IT A PICKUP IN INFLATION THE LATEST SURVEY OF FIFTY ONE ECONOMISTS BY THE BLUE CHIP ECONOMIC INDICATORS SHOWS THAT THEY EXPECT CONSUMER PRICES TO RISE ONLY TWO POINT EIGHT PERCENT THIS YEAR THE MOST PESSIMISTIC PREDICTION IS FOR THREE POINT FIVE PERCENT THE OPTIMISM IS BASED ON SEVERAL ARGUMENTS UNEMPLOYMENT IN THE U. S. IS FALLING AND BUSINESSES ARE OPERATING CLOSER TO FULL CAPACITY SO IT SHOULD GET EASIER FOR FIRMS TO RAISE PRICES BUT THERE REMAINS SO MUCH SLACK SO MANY JOBLESS WORKERS AND IDLE FACTORIES IN AN INCREASINGLY GLOBAL ECONOMY THAT U. S. FIRMS WILL FIND IT TOUGH TO PUSH UP PRICES SIGNIFICANTLY QUOTE WE THOUGHT ABOUT PRICE INCREASES QUOTE SAYS JOHN BALLARD CHIEF EXECUTIVE OF T. C. I. INTERNATIONAL INCORPORATED A SUNNYVALE CALIFORNIA ENGINEERING COMPANY BUT OUR RESEARCH OF COMPETITORS AND WHAT THE MARKET WOULD BEAR TOLD US IT WAS NOT WORTH PURSUING AT THE SAME TIME AN IMPROVING PRODUCTIVITY TREND IF IT LASTS GIVES THE ECONOMY MORE ROOM TO GROW BEFORE BOTTLENECKS MAKE IT EASY FOR PRODUCERS TO RAISE PRICES GROWTH IN MONEY AND CREDIT BROADLY DEFINED IS UP A BIT BUT STILL QUITE SUBDUED THE PRICES FOR OIL AND MANY OTHER COMMODITIES ARE IN A SLUMP AND THE BOND MARKET EVER VIGILANT ABOUT INFLATION HAS RISEN DRAMATICALLY A SUGGESTION THAT INVESTORS ARE SIDING WITH THE OPTIMISTS THERE IS EVEN A MARKET FOR FIFTY YEAR BONDS AGAIN EDWARD YARDENI OF C. J. LAWRENCE SLASH DEUTSCHE BANK SECURITIES AN OPTIMIST'S OPTIMIST WHO PREDICTS A TWO PERCENT INFLATION RATE THIS YEAR FIGURES THE END OF THE COLD WAR HELPS TOO IT DRAMATICALLY INCREASED THE ABILITY TO ACCESS CHEAP LABOR IN RUSSIA EAST EUROPE AND CHINA HE SAYS PLUS LOWER TRADE BARRIERS AND INCREASED INDUSTRIALIZATION IN COUNTRIES SUCH AS INDONESIA TEND TO KEEP WAGE LEVELS LOW BUT AS ALWAYS THERE ARE DOUBTERS AFTER ALL THE PAST COUPLE OF YEARS PROVE ONLY THAT INFLATION WILL BEHAVE WHEN THE ECONOMY STILL HAS SUBSTANTIAL SLACK MY INFLATION NUMBERS FOR THE FIRST TIME PUT PRICING POWER BACK IN THE HANDS OF SUPPLIERS INSTEAD OF PURCHASERS SAYS GAIL FOSLER CHIEF ECONOMIST OF THE CONFERENCE BOARD A NEW YORK RESEARCH GROUP SHE SEES CONSUMER PRICES RISING AT A FOUR PERCENT CLIP BY YEAR'S END AND PREDICTS THEY WILL RISE FOUR POINT FOUR PERCENT IN NINETEEN NINETY FIVE MAKING HER THE MOST PESSIMISTIC OF THE BLUE CHIP ECONOMISTS MANY COMPANIES RAISED PRICES EARLY LAST YEAR ONLY TO REVERSE COURSE IN WHOLE OR PART AFTER BOTH THE U. S. AND OVERSEAS ECONOMIES FALTERED COMPETITORS DIDN'T FOLLOW OR BIG CUSTOMERS BALKED AS THE ECONOMY IMPROVES IT WILL BE EASIER FOR COMPANIES TO MAKE PRICE INCREASES STICK STEEL COMPANIES AND TRUCKERS STARTED THE YEAR INCREASING PRICES FOR THEIR PRODUCTS AND SERVICES AS DID SOME BROKERAGE FIRMS JAPANESE CAR COMPANIES AND THE UNITED PARCEL SERVICE DUPONT SAYS IT WILL BE PUSHING FOR HIGHER CHEMICAL PRICES AS YEARLY NEGOTIATIONS ON NEW CONTRACTS BEGIN WITH CUSTOMERS LATER THIS MONTH GOVERNMENT INFLATION REPORTS FOR THE FIRST FEW MONTHS OF THE YEAR MAY SEND A FALSE SIGNAL THAT INFLATION IS RISING A RESULT ECONOMISTS SAY OF FLAWS IN THE BUREAU OF LABOR STATISTICS' CALCULATION METHODS THE PREVAILING CONSENSUS IS THAT INFLATION WON'T INCREASE MUCH FROM ITS CURRENT PACE AND MIGHT EVEN INCH DOWN TOWARD TWO POINT FIVE PERCENT WHICH IS PRETTY CLOSE TO NO INFLATION AT ALL ONCE THE VAGARIES OF MEASURING PRICE INCREASES ARE CONSIDERED THAT MEANS THE FED WON'T BE UNDER IMMEDIATE PRESSURE TO RAISE INTEREST RATES TO SLOW THE ECONOMY DOWN THAT GIVES THE ECONOMY MORE RUNNING SPACE BUT BEYOND THAT HAPPY CONSEQUENCE THE LOW INFLATION WORLD WILL ALSO REQUIRE SOME PAINFUL ADJUSTMENTS WAGE INCREASES WILL LOOK SMALLER WORKERS RECEIVING A FOUR PERCENT PAY RAISE IN TIMES OF FIVE PERCENT INFLATION MAY HAVE BEEN FALLING BEHIND BUT THEY ENJOYED A HEFTIER PAYCHECK IN THE CURRENT LOW INFLATION WORLD WAGE INCREASES WILL SEEM SKIMPIER EVEN THOUGH THEY MIGHT BE PUTTING WORKERS AHEAD OF THE INFLATION CURVE ECONOMISTS ALSO WORRY THAT IT WILL BE HARDER FOR EMPLOYERS TO CUT WAGES FOR WORKERS WHOSE SKILLS AREN'T IN DEMAND IN THE PAST A PAY FREEZE OR SLIGHT INCREASE AMOUNTED TO A REAL CUT THE ECONOMICS OF BUYING A HOUSE ARE CHANGING HOUSING PRICES OF COURSE ARE DRIVEN BY DEMOGRAPHICS SUPPLY AND DEMAND AND OTHER FACTORS BUT ONE FACTOR BEHIND THE HUGE RUN UP IN HOUSING PRICES IN THE NINETEEN EIGHTIES WAS INFLATION FOR MANY MIDDLE CLASS FAMILIES WITH MORTGAGES AND MODEST SAVINGS HOUSES WERE THE PERFECT HEDGE AGAINST INFLATION EVEN IF THE APPRECIATION WASN'T MUCH BETTER THAN THE INFLATION RATE IT CREATED A SENSE OF WEALTH THAT ISN'T LIKELY TO RECUR ANY TIME SOON DENNIS DUGAN AN ARCHITECT ON MANHATTAN'S WEST SIDE SAYS LOW INFLATION MEANS TO HIM THAT I'M EXCITED ABOUT GETTING RID OF REAL ESTATE WHEREAS IN THE SEVENTIES AND EIGHTIES I WAS DOING ALL I COULD TO ACCUMULATE IT OVER THE PAST TWENTY YEARS HE HAS HELD ONTO EVERY APARTMENT OR CONDO HE HAS LIVED IN RENTING OUT THE PROPERTIES AFTER HE MOVED OUT NOW HE SAYS WHEN I WANT TO BUY A NEW APARTMENT I SELL TWO OF THE OLD ONES THAT'S A DIRECT RESULT OF MY ASSUMPTION THAT LOW INFLATION WILL LAST AND REAL ESTATE VALUES ARE GOING TO BE FLAT QUOTE STICKER SHOCK MAY OCCUR IN OTHER REALMS AS WELL AT LEAST UNTIL THE PUBLIC GETS ACCUSTOMED TO A LOW INFLATION RATE AND A LOW INTEREST RATE ENVIRONMENT LOW INFLATION MEANS SMALLER INCREASES IN THE COST OF LIVING ADJUSTMENTS IN SOCIAL SECURITY CHECKS THAT CAN ANGER THE BENEFICIARIES EVEN THOUGH THE PRICES THEY PAY RISE SLOWLY SIMILARLY A FOUR PERCENT YIELD ON A CERTIFICATE OF DEPOSIT SEEMS PUNY EVEN THOUGH IT IS ACTUALLY WORTH MORE THAN A SIX PERCENT YIELD WAS IN A TIME OF HIGHER INFLATION AS A RESULT MANY PEOPLE HAVE HAULED MONEY OUT OF LOW YIELDING MONEY MARKET FUNDS AND INTO RISKIER MUTUAL FUNDS BUSINESSES WILL DEVOTE LESS TIME TO HEDGING AGAINST PRICE INCREASES MOVING CASH AROUND TO AVOID THE COST OF IDLE BALANCES IN NON INTEREST BEARING ACCOUNTS AND OTHER LARGELY UNPRODUCTIVE ACTIVITY IT FREES YOU UP TO DO OTHER THINGS SAYS ROGER HEINS WHO MANAGES MONEY FOR MILES INCORPORATED A SIX POINT FIVE BILLION DOLLAR A YEAR PHARMACEUTICAL AND CHEMICAL COMPANY IN PITTSBURGH ECONOMIST STANLEY FISCHER OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY HAS ESTIMATED THAT AT AN INFLATION RATE OF FIVE PERCENT THE U. S. WASTES ABOUT EIGHTEEN BILLION DOLLARS ZERO POINT THREE PERCENT OF ITS TOTAL OUTPUT ON SUCH ACTIVITIES THE TAX INCENTIVES FOR SAVING AND INVESTING MAY IMPROVE THE TAX CODE UNFAIRLY IN THE EYES OF MANY ECONOMISTS TAXES PROFITS EVEN IF THEY AREN'T TRULY PROFITS ONCE ONE ADJUSTS FOR INFLATION THE NET EFFECT OF OUR TAX SYSTEM COUPLED WITH CURRENT LEVELS OF INFLATION IS TO MAKE THE EFFECTIVE TAX RATE ON REAL OR INFLATION ADJUSTED CAPITAL GAINS WELL OVER FIFTY PERCENT SAYS FED GOVERNOR LAWRENCE LINDSEY FOR YEARS THERE HAS BEEN TALK IN CONGRESS BUT ONLY TALK OF ALTERING THE CAPITAL GAINS TAX TO CORRECT FOR THIS A LOW INFLATION RATE MAKES THE ISSUE MOOT IMAGINE BUYING A SHARE OF STOCK FOR ONE HUNDRED DOLLARS THAT INCREASES FIVE PERCENT A YEAR IN AN ERA OF FOUR PERCENT ANNUAL INFLATION AFTER EIGHTEEN YEARS THE STOCK IS WORTH TWO HUNDRED FORTY ONE DOLLARS SELL IT AND AFTER THE GOVERNMENT CLAIMS ITS TWENTY EIGHT PERCENT CAPITAL GAINS TAX YOU ARE LEFT WITH AN AFTER TAX PROFIT OF ONE HUNDRED TWO DOLLARS DOESN'T SOUND TOO BAD UNTIL YOU FIGURE IN INFLATION WITH FOUR PERCENT INFLATION A STOCK HAS TO DOUBLE IN VALUE IN EIGHTEEN YEARS JUST TO KEEP UP WITH INFLATION ADJUST FOR INFLATION AND THE AFTER TAX RETURN AFTER EIGHTEEN YEARS AMOUNTS TO A MEASLY TWO PERCENT CONSIDER THE SAME SCENARIO WITH TWO PERCENT INFLATION AND A STOCK THAT CLIMBS THREE PERCENT A YEAR THE SAME ONE PERCENT MARGIN ABOVE INFLATION AFTER EIGHTEEN YEARS THE STOCK IS WORTH ONE HUNDRED SEVENTY DOLLARS AND THE AFTER TAX PROFIT AMOUNTS TO FIFTY DOLLARS ADJUST FOR INFLATION AGAIN AND THE RETURN TURNS OUT TO BE A MUCH MORE PLEASANT EIGHT PERCENT THE SAME LOGIC APPLIES TO THE REWARDS FOR SAVING BECAUSE THE GOVERNMENT TAXES INTEREST AS IT IS PAID EVEN IF IT IS JUST ENOUGH TO COMPENSATE FOR INFLATION BUSINESSES SHOULD BE MORE WILLING TO INVEST FED VICE CHAIRMAN DAVID MULLINS FIGURES THAT LOW STABLE INFLATION RATES SHOULD KEEP DOWN WHAT ECONOMISTS CALL REAL LONG TERM INTEREST RATES THAT IS INTEREST RATES ADJUSTED FOR INFLATION LOW INFLATION HE REASONS WILL REDUCE WHAT IS KNOWN AS THE INFLATION PREMIUM THAT EXTRA MARGIN THAT LENDERS AND INVESTORS DEMAND TO PROTECT AGAINST THE RISK OF INFLATION AND LOW INTEREST RATES ENCOURAGE BUSINESSES TO BUY NEW EQUIPMENT AND COMPUTERS AND BUILD NEW PLANTS AND BUILDINGS THE KEY TO GROWTH IN INCOMES IS GROWTH IN PRODUCTIVITY MR. MULLINS SAYS AND THE KEY TO GROWTH IN PRODUCTIVITY IS INVESTMENT AND THE KEY TO INVESTMENT IS LOW LOW REAL INTEREST RATES AND THE KEY TO LOW REAL RATES IS LOW INFLATION QUOTE THE PECULIARITIES OF THE TAX CODE SHOULD REINFORCE THIS INCENTIVE TO INVESTMENT A BUSINESS THAT BUYS A MACHINE CAN'T DEDUCT ITS COST ALL AT ONCE WHEN IT COMPUTES ITS TAXES INSTEAD IT DEDUCTS THE COST OVER A PERIOD OF YEARS THE MORE INFLATION THE LESS VALUABLE THESE DEPRECIATION DEDUCTIONS IN THE LATER YEARS THE LOWER THE INFLATION RATE THEREFORE THE GREATER THEIR VALUE AND THE MORE ATTRACTIVE AN INVESTMENT SHOULD BE HERE ARE THE PRICE INDEXES NINETEEN EIGHTY TWO TO NINETEEN EIGHTY FOUR EQUALS ONE HUNDRED AND PERCENTAGE CHANGES FOR THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS FOR DECEMBER THE PERCENTAGE CHANGES FROM THE PREVIOUS MONTH ARE SEASONALLY ADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM DECEMBER NINETEEN NINETY TWO WERE THE INTERIOR DEPARTMENT REACHED AN AGREEMENT WITH ONE OF TWO LARGE SUGAR COMPANIES ON CLEANING AGRICULTURAL RUNOFF FROM THE FLORIDA EVERGLADES IN THE AGREEMENT FLO SUN INCORPORATED WEST PALM BEACH FLORIDA WILL DROP A LAWSUIT AGAINST THE DEPARTMENT AND THE FLORIDA STATE GOVERNMENT OVER ENVIRONMENTAL REGULATION OF THE EVERGLADES IT ALSO PLEDGED TO PAY OVER TWENTY YEARS AS MUCH AS ONE HUNDRED MILLION DOLLARS TO FINANCE CLEANUP OF PHOSPHOROUS THAT HAS WASHED OFF FARMLAND AND INTO THE AREA'S WATERWAYS THE AREA'S OTHER MAJOR SUGAR COMPANY U. S. SUGAR CORPORATION DECLINED TO JOIN THE AGREEMENT AND WILL PROCEED WITH PLANS TO FIGHT GOVERNMENT REGULATIONS ON THE MATTER IN COURT U. S. SUGAR AND FLO SUN EACH OWN ROUGHLY THIRTY PERCENT OF THE FARMLAND IN THE EVERGLADES AREA THE INTERIOR DEPARTMENT LAST JULY ANNOUNCED THAT IT REACHED AN OUTLINE AGREEMENT WITH BOTH U. S. SUGAR AND FLO SUN THAT INTERIOR SECRETARY BRUCE BABBITT SAID WOULD RESULT IN QUOTE THE LARGEST MOST AMBITIOUS ECOSYSTEM RESTORATION PROJECT EVER UNDERTAKEN IN THIS COUNTRY QUOTE BUT TALKS WITH U. S. SUGAR BROKE DOWN IN DECEMBER OVER AN EVERGLADES LAND USE STUDY PREPARED FOR THE ARMY CORPS OF ENGINEERS BY AN INTERIOR DEPARTMENT SCIENCE PANEL AT THE TIME U. S. SUGAR SAID THE STUDY PREPARED INDEPENDENTLY OF THE TALKS PROPOSED SWEEPING ADDITIONAL LIMITS ON FARMLAND IN THE EVERGLADES AREA THE COMPANY SAID NEGOTIATIONS COULDN'T CONTINUE UNLESS THE INTERIOR DEPARTMENT PLEDGED NOT TO IMPLEMENT THEM FOR TWENTY YEARS THE INTERIOR DEPARTMENT REFUSED BUT FLO SUN WHICH IS PRIVATELY HELD BY MEMBERS OF THE FANJUL FAMILY QUIETLY KEPT NEGOTIATING WITH THE DEPARTMENT AN EFFORT THAT CULMINATED IN YESTERDAY'S AGREEMENT GEORGE FRAMPTON ASSISTANT SECRETARY FOR FISH WILDLIFE AND PARKS SAID IT WAS ACTUALLY QUITE A BIT BETTER DEAL FOR THE GOVERNMENT THAN WHAT WE'VE BEEN NEGOTIATING FOR THE LAST SIX MONTHS HE ADDED THAT NOW THAT FLO SUN HAS DROPPED OUT OF THE LAWSUIT U. S. SUGAR'S LITIGATION EXPENSES HAVE JUST DOUBLED WE'RE GOING TO INCREASE THE PRESSURE ON ANYBODY WHO DOESN'T SIGN ROBERT BUKER SENIOR VICE PRESIDENT FOR U. S. SUGAR SAID THE COMPANY DIDN'T SIGN ON TO THE AGREEMENT BECAUSE THERE WAS NO GUARANTEE THAT THE SCIENCE PANEL'S PLAN WOULDN'T BE IMPLEMENTED AND BECAUSE THE STATE OF FLORIDA HASN'T YET SIGNED ON WE'RE AN EMPLOYEE OWNED COMPANY HE SAID WE DON'T HAVE THE LUXURY OF PICKING UP OUR CAPITAL AND MOVING IT OVERSEAS BUT DONALD CARSON EXECUTIVE VICE PRESIDENT OF FLO SUN SAID QUOTE WE ARE CONVINCED WE'RE DOING THE RIGHT THING AND WE HOPE THE OTHER FARMERS WILL JOIN US QUOTE IN ADDITION TO U. S. SUGAR SEVERAL SMALLER FARMERS ARE PRESSING THE LAWSUIT IT IS DUE TO COME TO TRIAL APRIL TWENTY FIFTH IN FEDERAL DISTRICT COURT IN TALLAHASSEE FLORIDA MAJOR RAILROADS BOOSTED FOURTH QUARTER EARNINGS AN AVERAGE OF MORE THAN TEN PERCENT HELPED BY TIGHT COST CONTROLS AND A PICKUP IN SOME FREIGHT SHIPMENTS ANALYSTS SAID THE IMPROVED EARNINGS WERE ACHIEVED DESPITE DISAPPOINTING SHIPMENTS OF TWO IMPORTANT RAIL HAULED COMMODITIES COAL TRAFFIC WAS HAMPERED BY A MINERS STRIKE IN THE EAST AND WEAK EXPORT DEMAND WHILE GRAIN SHIPMENTS WERE STYMIED BY WEAK EXPORTS AND SEVERE MIDWEST FLOODING LAST SUMMER HOWEVER THE WEAKNESS IN COAL AND GRAIN TRAFFIC WAS MORE THAN OFFSET BY BIG TRAFFIC GAINS IN METALS FINISHED AUTOMOBILES AND INTERMODAL TRAFFIC FREIGHT MOVED BY A COMBINATION OF ROAD AND RAIL ACCORDING TO THE ASSOCIATION OF AMERICAN RAILROADS INTERMODAL SHIPMENTS CLIMBED TEN PERCENT IN THE FOURTH QUARTER REFLECTING THE IMPROVING ECONOMY AND INCREASED USE OF THE RAILS BY MOTOR CARRIERS TRYING TO CUT COSTS AND EASE A SHORTAGE OF LONG HAUL TRUCK DRIVERS ALTHOUGH COAL TRAFFIC DECLINED TWO POINT SEVEN PERCENT AND GRAIN TRAFFIC WAS OFF TEN PERCENT INDUSTRIAL SHIPMENTS IMPROVED WITH METALS INCREASING SEVENTEEN POINT SIX PERCENT MOTOR VEHICLES FOURTEEN POINT THREE PERCENT CHEMICALS SIX POINT FIVE PERCENT AND LUMBER SIX POINT THREE PERCENT QUOTE IF YOU EXCLUDE COAL AND GRAIN RAIL TRAFFIC WOULD HAVE BEEN UP SIX PERCENT IN OCTOBER EIGHT PERCENT IN NOVEMBER AND ELEVEN PERCENT IN DECEMBER QUOTE SAID MICHAEL LLOYD AN ANALYST AT NATWEST SECURITIES CORPORATION THE RAIL TRAFFIC NUMBERS TELL US THE ECONOMY WAS SOARING AS THE FOURTH QUARTER ENDED MR. LLOYD ESTIMATED THE GROUP BOOSTED FOURTH QUARTER EARNINGS ABOUT ELEVEN PERCENT THOMAS GALVIN AN ANALYST AT C. J. LAWRENCE SLASH DEUTSCHE BANK SECURITIES CORPORATION ESTIMATED RAIL EARNINGS ROSE AS MUCH AS SEVENTEEN PERCENT WITH COST CUTTING DISCIPLINE CONTRIBUTING AS MUCH TO THE GAIN AS THE SURGE IN TRAFFIC RAILROADS REMAIN FOCUSED ALMOST OBSESSED WITH STREAMLINING THEIR COST STRUCTURE AND DRIVING SERVICE STANDARDS AND ASSET UTILIZATION LEVELS HIGHER MR. GALVIN SAID ANALYSTS ESTIMATED HIGHER FOURTH QUARTER EARNINGS AT CONRAIL INCORPORATED NORFOLK SOUTHERN CORPORATION UNION PACIFIC CORPORATION BURLINGTON NORTHERN INCORPORATED AND SANTA FE PACIFIC CORPORATION BUT THEY FORECAST EARNINGS DECLINED AT C. S. X. CORPORATION WHOSE RAIL UNIT WAS HURT BY THE COAL MINERS STRIKE THAT ENDED LATE IN THE FOURTH QUARTER A C. S. X. SPOKESWOMAN DIDN'T PRECISELY ESTIMATE FOURTH QUARTER EARNINGS FOR THE PARENT COMPANY WHICH HAD NET INCOME OF ONE HUNDRED FIFTY TWO MILLION DOLLARS OR ONE DOLLAR AND FORTY SEVEN CENTS A SHARE IN THE YEAR EARLIER PERIOD BUT SHE SAID FOURTH QUARTER NET INCOME EXCEEDED THE ONE DOLLAR AND THIRTY SEVEN CENTS A SHARE MEAN OF ANALYSTS' ESTIMATES AND FELL AT THE TOP END OF ESTIMATES THAT RANGE FROM ONE DOLLAR AND TWENTY FIVE CENTS TO ONE DOLLAR AND FORTY SEVEN CENTS A SHARE THE SPOKESWOMAN SAID COAL TRAFFIC DECLINED CLOSE TO FIFTEEN PERCENT AT THE C. S. X.'S RAIL UNIT BUT THAT TRAFFIC GAINS IN AUTOMOBILES METALS AND CHEMICALS WERE VERY REFLECTIVE OF THE STRENGTH OF THE U. S. DOMESTIC ECONOMY SHE SAID OPERATING PROFIT AT THE COMPANY'S OCEAN SHIPPING UNIT ROSE SUBSTANTIALLY IN THE FOURTH QUARTER WHILE PROFIT OF THE INLAND BARGE UNIT WILL BE RELATIVELY CLOSE TO MEETING A VERY STRONG PERFORMANCE IN FOURTH QUARTER NINETEEN NINETY TWO A BURLINGTON NORTHERN SPOKESMAN SAID THE COMPANY IS QUOTE GENERALLY COMFORTABLE QUOTE WITH THE CONSENSUS OF ANALYST ESTIMATES THAT BURLINGTON NORTHERN EARNED ONE DOLLAR AND TWENTY CENTS A SHARE IN THE FOURTH QUARTER THE COMPANY EARNED ONE DOLLAR AND FOUR CENTS A SHARE IN THE YEAR EARLIER QUARTER EXCLUDING A FAVORABLE TAX ADJUSTMENT OF NINETEEN CENTS A SHARE THE SPOKESMAN SAID BURLINGTON NORTHERN BENEFITED FROM A REDUCTION IN PERSONAL INJURY COSTS AND AN AGREEMENT TO EXTEND SMALLER FREIGHT TRAIN CREWS TO THE NORTHERN THIRD OF ITS RAIL SYSTEM COAL TRAFFIC SOARED NINE PERCENT IN THE QUARTER HE SAID REFLECTING THE COMPANY'S EFFORT TO HELP UTILITIES REBUILD STOCKPILES THAT WERE DEPLETED WHEN THE MIDWEST FLOODS DISRUPTED RAIL SERVICE HOWEVER THE MOVE DIVERTED RAIL CAPACITY WE DIDN'T HAVE AS MANY LOCOMOTIVES AND CREWS TO HAUL OTHER FREIGHT THE BURLINGTON NORTHERN SPOKESMAN SAID ROBERT KREBS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF SANTA FE PACIFIC SAID WE WILL CERTAINLY MEET ANALYSTS' EXPECTATIONS FOR FOURTH QUARTER PROFIT OF ABOUT TWENTY NINE CENTS OR THIRTY CENTS A SHARE THE COMPANY EARNED FORTY THREE POINT NINE MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE IN THE YEAR EARLIER QUARTER EXCLUDING GAINS FROM TRANSIT LINE SALES THAT BOOSTED NET INCOME TO ONE HUNDRED SIXTY EIGHT POINT NINE MILLION DOLLARS OR NINETY ONE CENTS A SHARE MR. KREBS SAID SANTA FE HAS CUT COSTS BY CENTRALIZING SOME RAIL OPERATIONS AND FOURTH QUARTER RAIL TRAFFIC INCREASED SHARPLY WITH THE STRONGEST GAINS IN INTERMODAL UP TWELVE PERCENT AND AUTOMOBILES AND AUTO PARTS UP THIRTY FIVE PERCENT ANDRAS PETERY AN ANALYST AT MORGAN STANLEY AND COMPANY ESTIMATED UNION PACIFIC EARNED ONE DOLLAR AND TWENTY CENTS A SHARE IN THE LATEST QUARTER COMPARED WITH NINETY FOUR CENTS IN THE YEAR EARLIER PERIOD MR. PETERY SAID THE COMPANY'S RAIL AND TRUCKING UNITS PERFORMED WELL BUT THAT UNION PACIFIC'S RESOURCES UNIT WAS HURT BY LOWER OIL PRICES UNION PACIFIC DECLINED TO COMMENT AMONG EASTERN RAILROADS CONRAIL BENEFITED FROM PRODUCTIVITY AND TRAFFIC GAINS WE HAVE GOTTEN OUR COSTS DOWN AND CAN PRICE TO ATTRACT SHORTER HAUL FREIGHT AND STILL MAKE SOME MONEY SAID A CONRAIL SPOKESMAN BUT THE SPOKESMAN DECLINED TO COMMENT ON ANALYST ESTIMATES THAT THE COMPANY HAD EARNINGS OF ABOUT ONE DOLLAR AND ELEVEN CENTS A FULLY DILUTED SHARE COMPARED WITH NINETY NINE CENTS A SHARE A YEAR AGO BURTON STRAUSS JUNIOR AN ANALYST AT LEHMAN BROTHERS INCORPORATED ESTIMATED NORFOLK SOUTHERN'S FOURTH QUARTER EARNINGS AT ONE DOLLAR AND THIRTEEN CENTS A SHARE SCOTT FLOWER AN ANALYST AT KIDDER PEABODY AND COMPANY WAS SLIGHTLY HIGHER AT ONE DOLLAR AND SIXTEEN CENTS A SHARE NORFOLK SOUTHERN REPORTED NET INCOME OF ONE HUNDRED TWENTY EIGHT MILLION DOLLARS OR NINETY ONE CENTS A SHARE FOR THE NINETEEN NINETY TWO FOURTH QUARTER NORFOLK SOUTHERN DECLINED TO COMMENT ON THE ESTIMATES OTHER THAN TO SAY THAT STRONG INDUSTRIAL FREIGHT AND INTERMODAL TRAFFIC OFFSET A WEAKNESS IN COAL WE HAVE MORE DEMAND THAN WE CAN HANDLE SAID TOM FINKBINER NORFOLK SOUTHERN'S VICE PRESIDENT INTERMODAL TO HANDLE THE INCREASING DEMAND FOR INTERMODAL FREIGHT NORFOLK SOUTHERN IS EXPANDING SOME TERMINALS AND RECENTLY ANNOUNCED PLANS TO BUILD AN INTERMODAL TERMINAL ON EIGHT HUNDRED ACRES OUTSIDE ATLANTA RACQUETBALL IS A WONDERFUL GAME AND I PRIDE MYSELF ON BEING ONE OF ITS EARLIEST PARTICIPANTS I'VE BEEN PLAYING FOR TWENTY THREE OR TWENTY FOUR YEARS LONG ENOUGH TO HAVE BEEN ASKED BY HANDBALL PLAYERS WHEN HEADED COURTWARD WHY I WAS CARRYING THAT RACQUET I RECALL THE MID NINETEEN SEVENTIES WHEN THE SPORT WAS THE RAGE AND LARGE SPIFFY CLUBS WERE SPRINGING UP EVERYWHERE QUOTE YOU SAY YOU'D LIKE TO JOIN QUOTE THE YOUNG MAN IN SWEAT CLOTHES BEHIND THE COUNTER WOULD SAY WELL I THINK WE MAY HAVE AN OPENING WHAT DO YOU CHARGE FOR COURT TIME I WOULD ASK YOU MEAN BY THE SEASON OF COURSE THE GUY WOULD ANSWER BUT AFTER A FEW YEARS YOU DIDN'T HAVE TO RESERVE COURT TIME BY THE SEASON A PHONE CALL A WEEK IN ADVANCE WOULD DO AFTER A COUPLE YEARS MORE YOU COULD CALL THE DAY BEFORE AND ARRANGE TO PLAY THEN ALL YOU HAD TO DO WAS SHOW UP ONE DAY AROUND NINETEEN EIGHTY FIVE I SHOWED UP AND THE PLACE WAS CLOSED IT'S A WAREHOUSE NOW I THINK ALONG WITH RACQUETBALLERS DISPLACED BY THAT AND OTHER CLUB CLOSINGS THERE USED TO BE SEVERAL IN MY VICINITY I JOINED THE LOCAL Y. M. C. A. IT HAD A FAIR AMOUNT OF TRAFFIC ON ITS FOUR COURTS FOR A WHILE BUT THAT HAS PETERED OUT TOO JON LAING WHO WRITES FOR BARRON'S AND I PLAY A COUPLE WEEKDAY MORNINGS STARTING AT SEVEN FORTY FIVE AND I CAN THINK OF ONLY ONE DAY THIS WINTER IN WHICH ANOTHER COURT WAS OCCUPIED WHILE WE WERE THERE THIS WEEK OUT OF CURIOSITY I ASKED THE Y. DESKMAN WHAT THE WEEKEND SITUATION WAS LIKE HE SHOWED ME THE ADVANCE SIGN UP SHEETS FOR TOMORROW AND SUNDAY THEY WERE BLANK WE GET SOME EARLY EVENING PLAY ON WEEKDAYS BUT NOT MUCH AT OTHER TIMES SAID HE I'D LONG SUSPECTED THAT RACQUETBALL WOULDN'T HOLD ITS EARLY POPULARITY THE FIRST TIP OFF WAS THE FACT THAT PROFESSIONAL ATHLETES WERE AMONG THE MOST VISIBLE COURT CLUB INVESTORS BUT ITS RECENT DECLINE HAS SEEMED PRECIPITOUS FOR DOCUMENTATION I PHONED THE AMERICAN AMATEUR RACQUETBALL ASSOCIATION THE SPORT'S U. S. GOVERNING BODY I WAS TOLD THAT WHILE IT HAD NO CURRENT FIGURES ITS LATEST ESTIMATE WAS THAT U. S. PARTICIPATION WAS HOLDING STEADY AT ABOUT NINE POINT FIVE MILLION PLAYERS GIVEN THE INGRAINED BOOSTERISM OF SUCH ORGANIZATIONS I EXPECTED ABOUT AS MUCH THE NATIONAL SPORTING GOODS ASSOCIATION WHICH ANNUALLY SURVEYS SPORTS PARTICIPATION SAYS THERE WERE ABOUT SIX POINT SIX MILLION AMERICAN RACQUETBALLERS AT ITS LAST PUBLISHED CHECK IN NINETEEN NINETY TWO DOWN FROM NINE POINT NINE MILLION IN NINETEEN EIGHTY FOUR IN A LAND OF TWO HUNDRED FIFTY MILLION THERE PROBABLY ARE SIX POINT SIX MILLION PEOPLE WITH LOWER LIP COLD SORES AT ANY GIVEN TIME BUT EVEN THAT NUMBER SEEMS HIGH RACQUETBALL'S PROFESSIONAL SIDE REFLECTS THE HARSHER REALITIES A PRO TOUR FLOURISHED IN THE EARLY EIGHTIES AND HAD A STAR IN YOUNG MARTY HOGAN BUT BY THE LATE EIGHTIES IT DWINDLED TO ONLY FOUR STOPS BEFORE IT DIED THERE'S A NEW ONE NOW CALLED THE TRANSCOASTAL INTERNATIONAL TOUR IT ALSO VISITS CANADA AND MEXICO BUT IT'S SANS HOGAN HE'S RETIRED AND THE TOTAL PRIZE MONEY AVAILABLE AT EACH OF ITS TWENTY STOPS IS IN THE FIFTEEN THOUSAND DOLLAR TO TWENTY THOUSAND DOLLAR RANGE AGAINST AS MUCH AS FIFTY THOUSAND DOLLARS IN THE GOOD OLD DAYS QUOTE OUR VENUES NEVER HAD THE SEATING CAPACITY TO PRODUCE MUCH OF A LIVE GATE AND THE BALL MOVES TOO FAST FOR TELEVISION QUOTE SAYS HANK MARCUS THE THIRTY TWO YEAR OLD FORMER PLAYING PRO WHO'S COMMISSIONER OF THE TRANSCOASTAL TOUR WE'VE HAD TO SCALE DOWN OUR EXPECTATIONS THE PROS HAVE REDUCED THEIR GAME'S NUMBER OF SERVES TO ONE FROM TWO TO PROMOTE RALLIES AND HAVE CHANGED THE COLOR OF THEIR BALL TO GREEN FROM BLUE IN THE NAME OF GREATER VISIBILITY THE SERVICE CHANGE CAME BECAUSE OF ALL THE ACES PRODUCED BY THE ONE HUNDRED SEVENTY MPH DELIVERIES OF THE TOP PLAYERS BUT MARCUS THINKS THE RECREATIONAL GAME ALSO WOULD BENEFIT FROM SUCH A SWITCH ANOTHER FELLOW WHO BELIEVES A ONE SERVE RULE MIGHT HELP BRING PLAYERS BACK TO RACQUETBALL IS JOE SOBEK HE'S WORTH LISTENING TO BECAUSE HE INVENTED THE GAME IN NINETEEN FORTY NINE HE WAS A TENNIS PRO IN GREENWICH CONNECTICUT WHO WANTED A WINTER OUTLET FOR HIS ENERGIES REJECTING HANDBALL BECAUSE IT REQUIRES AMBIDEXTERITY AND SQUASH BECAUSE COURTS WERE TOO FEW HE DEVELOPED A SHORT HANDLED RACQUET WITH STRINGS AND FOUND A LIGHT SEAMLESS DIME STORE BALL TO WHACK AROUND WITH IT INSIDE A HANDBALL COURT THE GAME TOOK NO TIME TO LEARN AND SOON HE AND HIS FRIENDS WERE HOT AT IT THE RUB WAS IN FINDING A MASS PRODUCED RUBBER BALL THAT WAS BOTH RELIABLE AND PLAYABLE THE ONES THAT WERE LIVELY ENOUGH BROKE AND THE ONES THAT WERE STURDY DIDN'T PLAY WELL SOBEK SAYS THE QUEST TOOK NEARLY TWENTY YEARS BUT ONCE IT WAS SUCCESSFUL THE GAME SOARED SOBEK NOW SEVENTY FIVE YEARS OLD SAYS HE'S DISAPPOINTED BUT NOT TERRIBLY SURPRISED THAT RACQUETBALL HAS FALLEN INTO ECLIPSE HE AGREES WITH THE PROPOSITION THAT EASY TO DO EXERCISE PUSHES OUT ACTIVITIES THAT REQUIRE SOME TALENT AND APPLICATION AND NOTES THAT AS SIMPLE AS RACQUETBALL IS TO LEARN IT STILL FALLS SHORT OF THE INSTANT MASTERY OFFERED BY SUCH CURRENTLY IN VOGUE WORKOUT GADGETS AS THE TREADMILL LIFECYCLE OR STAIRMASTER I OFFERED HIM MY THEORY THAT RACQUETBALL HAS FALTERED IN PART BECAUSE UNLIKE SOME OTHER SPORTS VERY SMALL DIFFERENCES IN SKILL BETWEEN PLAYERS TRANSLATE INTO VERY LARGE DIFFERENCES IN GAME SCORES THIS MEANS THAT TO KEEP INTERESTED PLAYERS MUST FIND OPPONENTS WHO PERFORM AT ALMOST EXACTLY THEIR LEVEL NO SMALL FEAT I ATTRIBUTE MY CONTINUED ALLEGIANCE TO THE GAME TO THE AVAILABILITY OF THE ABOVE MENTIONED LAING HE AND I SHARE A B. LEVEL OF EXPERTISE AND PRETTY MUCH TAKE TURNS WINNING ALTHOUGH I MUST ADMIT THAT HIS WIMPY KILL SHOTS ARE BECOMING MORE EFFECTIVE AS MY LEGS AGE SOBEK SAID HE THOUGHT I HAD A POINT BUT HE HAD A FURTHER ONE RACQUETBALL'S DECLINE WAS PROBABLY INEVITABLE BECAUSE THE SPORT GREW SO FAST HE OPINES IT CAUGHT RIGHT ON THE COURT CLUBS MUSHROOMED AND ALL THE OPERATORS HAD TO DO TO GET BUSINESS WAS OPEN THEIR DOORS BUT MOST OF THEM DIDN'T DO MUCH PROMOTION OR OFFER INSTRUCTION AND WHEN PEOPLE REACHED THEIR LIMITS THEY GOT BORED AND QUIT QUOTE IT'S BEEN A CASE OF EASY COME EASY GO AND I'M AFRAID THAT COMING BACK WON'T BE EASY QUOTE A READER PERUSING A RECENT ISSUE OF THE NEW YORKER COULD HAVE EASILY MISTAKEN A FULL PAGE COLOR ADVERTISEMENT FOR ONE OF THE MAGAZINE'S MANY QUIRKY CARTOONS A RUN DOWN CADILLAC LIES ON A COUNTRY ROAD THE HANDWRITTEN TEXT DATED QUOTE EIGHT JULY QUOTE BORDERS ON GIBBERISH QUOTE THE JUNE BUG JACKSON POLLOCKED MY WINDSHIELD AND AS I LOOKED AT ITS INNARDS I SAW SUBSTANCE WHICH MADE ME THINK IS THERE STILL SOME ROOM IN A SOCIETY OF DISPOSABLE RAZORS DISPOSABLE CARS AND DISPOSABLE MARRIAGES FOR SOMETHING WITH SUBSTANCE WHAT COULD POSSIBLY BE ON SALE NOTHING ZANY IT TURNS OUT INSTEAD MORNING EDITION AND ALL THINGS CONSIDERED HIGHLY RESPECTED DAILY OFFERINGS FROM NATIONAL PUBLIC RADIO IN WASHINGTON THE ADS ARE A DEPARTURE FROM PREVIOUS CAMPAIGNS FOR THE NETWORK WHICH RELIED ON SLOGANS THAT TRIED TO BE CUTE TO ELEVEN MILLION COMMUTERS THIS IS A THINK TANK SAID ONE AD WITH A PHOTOGRAPH OF A DRIVER IN A CAR TWICE A DAY WE EXPLAIN THE FACTS OF LIFE SAID ANOTHER THE NEW ADS ARE TRYING TO BREAK THROUGH THE CLUTTER OF OTHER HIGHER PROFILE RADIO STATIONS FOR EXAMPLE W. A. B. C. IN NEW YORK THE TOP RATED A. M. STATION WITH A FORMAT OF CONFRONTATIONAL TALK PROMOTES ITSELF VIA POSTERS PLASTERED ALL OVER THE CITY OF A MUSIC NOTE WITH A RED SLASH THROUGH IT BY CONTRAST NATIONAL PUBLIC RADIO'S APPROACH IS QUIET AND PERCEIVED AS DISTINGUISHED WE WANT TO ENGAGE THE READER SAYS TIM WILLIAMS PRESIDENT OF WILLIAMS AND ROCKWOOD THE SALT LAKE CITY AGENCY THAT HAS BEEN PRODUCING NPR'S ADS FOR FOUR YEARS THE NEED FOR A NEW CAMPAIGN AROSE BECAUSE QUOTE AS GOVERNMENT FUNDS AND OTHER RESOURCES DRY UP NPR HAS HAD TO GET MORE AGGRESSIVE IN TERMS OF PROMOTING ITSELF QUOTE ANOTHER AD FOR TALK OF THE NATION AN NPR CALL IN PROGRAM SHOWS A THICK SLICE OF PIE AND A PIPING HOT MUG OF COFFEE THE TEXT DATED TWELVE AUGUST BEGINS HEROIC NUDES WATCHED WITH ENVY FROM THE WALL AND AS THE SMELL OF RICH COFFEE FILLED THE AIR IT HAPPENED CONCEPTUAL IMPROV EVERYONE EXCHANGING IDEAS IN ADDITION TO THE NEW YORKER THE NEW CAMPAIGN WILL BE SEEN IN OMNI FORBES UTNE READER HEALTH AND ARCHAEOLOGY MAGAZINES THEY DON'T CHARGE NPR A CENT NOR DOES ITS AD AGENCY IN EXCHANGE FOR THE ADS THE MAGAZINES ARE MENTIONED AT THE CONCLUSION OF NPR BROADCASTS NOT A BAD DEAL FOR NPR WHICH RELIES LARGELY ON FEDERAL FUNDING AND CONTRIBUTIONS FROM LISTENERS FOR EXAMPLE NPR SAYS THE NEW YORKER IS GIVING IT TWO HUNDRED EIGHT THOUSAND DOLLARS WORTH OF ADS FOUR COLOR ADS AND SIX BLACK AND WHITE FULL PAGE EXPOSURES IN EXCHANGE THE WEEKLY MAGAZINE RECEIVES MORE THAN TWO HUNDRED ON AIR MENTIONS THAT IS FAR FROM A COMMERCIAL FOR THE NEW YORKER INSTEAD IT IS LUMPED WITH THREE OTHER MAJOR CONTRIBUTORS IN A HO HUM ANNOUNCEMENT SUPPORT FOR THIS PROGRAM IS PROVIDED BY THIS AND OTHER NPR RADIO MEMBER STATIONS .CCONTRIBUTORS INCLUDE AND THEN A TINY PLUG FOR THE MAGAZINE OMNI'S FOR INSTANCE IS QUOTE A TOOL FOR THE TWENTY FIRST CENTURY QUOTE THE NEW YORKER IS WAITING TO SELECT A NEW AD AGENCY BEFORE GOING ON THE AIR WITH A SLOGAN INTERESTINGLY AN NPR SPOKESWOMAN SAYS IT IS THE MAGAZINES THAT APPROACH NPR WITH THE IDEA OF TRADING AD SPACE FOR A TEN WORD MENTION ON THE AIR NPR'S AUDIENCE AND OUR READERSHIP HAVE SIMILAR QUALITIES SAYS A SPOKESWOMAN FOR THE NEW YORKER IT IS A WAY FOR US TO GAIN AWARENESS AMONG THEIR AUDIENCE THE ADS FROM NEW YORK ARTIST BOB CONGE ARE REMINISCENT OF THE ZANY ILLUSTRATIONS OF RALPH STEADMAN WHO PROVIDED THE ART WORK FOR BOOKS BY GONZO JOURNALIST HUNTER S. THOMPSON INCLUDING FEAR AND LOATHING IN LAS VEGAS THE NEW YORKER ORIGINALLY OBJECTED TO THE TWO ADS FROM MR. CONGE BECAUSE THEY LOOKED TOO MUCH LIKE ACTUAL NEW YORKER CARTOONS MR. WILLIAMS SAYS SUBSEQUENT ADS WILL PROBABLY BE LABELED AS ADVERTISEMENTS AT THE TOP OF EACH PAGE ALTHOUGH DETAILS HAVE YET TO BE WORKED OUT MR. WILLIAMS SAYS THE AGENCY CREATES THE CAMPAIGNS ON A PRO BONO BASIS WE LIKE WORKING ON CAUSES WE BELIEVE IN HE SAYS ADDING THAT THE AGENCY ALSO CREATES PRO BONO ADS FOR THE UTAH SYMPHONY I SENT A LETTER TO NPR FOUR YEARS AGO HE SAYS QUOTE WE GET SOMETHING OUT OF THIS WE GET EXPOSURE AND AN EXCEPTIONAL DEGREE OF CREATIVE LATITUDE IT HELPS ADDS MR. WILLIAMS THAT THE AGENCY'S THREE PARTNERS ARE ALL FANS OF NPR THE ILLUSTRATED ADS MAY SEEM PUZZLING AT FIRST IN FACT ONE HAS TO READ UNTIL THE END OF THE JACKSON POLLOCKED AD TO SEE HOW AND IF IT ALL MAKES SENSE THAT AD CONCLUDES WITH AND AS ANOTHER JUNE BUG ADDS TO THE PAINTING ON THE WINDSHIELD I GLANCE AT THE RADIO DIAL AND THINK YES THERE ARE A FEW PLACES WHERE SUBSTANCE STILL MATTERS THE ADS' EFFECTIVENESS HASN'T BEEN TESTED YET BECAUSE THEY'RE SO NEW ALREADY HOWEVER THE AGENCY IS AT WORK TO CREATE MORE PUZZLING ADS FOR NPR QUOTE TWIN PEAKS QUOTE ANYONE T. B. W. A. OMNICOM GROUP'S T. B. W. A. INTERNATIONAL OPENED AN OFFICE IN ATHENS GREECE PRODUCTA T. B. W. A. S. A. WAS FORMED BY TWO TINY AGENCIES T. B. W. A. ACQUIRED AND MERGED PRODUCTA S. A. AND OXYGEN S. A. THE AGENCY'S BILLINGS ARE ESTIMATED AT FIFTEEN MILLION DOLLARS CLIENTS INCLUDE BAYER ASPIRIN AND LONGINES WATCHES WHO'S NEWS LES MOUSER FORTY ONE YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MINNEAPOLIS OFFICE OF C. M. E. KHBB A UNIT OF SAATCHI AND SAATCHI COMPANY HE SUCCEEDS HOWARD LISZT WHO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THE SAATCHI'S C. M. E. NETWORK EARLIER THIS MONTH PETER BACH THIRTY NINE WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE C. M. E. NETWORK BOZELL A UNIT OF BOZELL JACOBS KENYON AND ECKHARDT NAMED ANDREW P. TUCK FORTY ONE TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT AND DIRECTOR OF STRATEGIC PLANNING DOCTOR TUCK WAS EXECUTIVE VICE PRESIDENT AT BOZELL'S KRC RESEARCH AND CONSULTING THE UNIFICATION OF GERMANY IN NINETEEN EIGHTY NINE TO NINETEEN NINETY WAS THE CRUCIAL POLITICAL EVENT OF THE LATE TWENTIETH CENTURY IN CENTRAL EUROPE IT WAS ALSO A DEEPLY IRONIC MOMENT IT WAS IRONIC FIRST BECAUSE FEW WEST GERMANS HAD EXPECTED IT YET WHEN IT BEGAN TO HAPPEN EVERY POLITICAL PARTY CLAIMED THAT ITS POLICIES HAD PREPARED THE WAY AND THAT IT ALONE HAD THE RIGHT STRATEGY FOR MAKING IT WORK GERMAN UNIFICATION WAS IRONIC SECONDLY IN THE MORE PROFOUND SENSE THAT WHILE UNEXPECTED IT DID HAPPEN EXACTLY AS WEST GERMAN LEADERS SINCE THE MID NINETEEN FIFTIES HAD PREDICTED IT WOULD BY THE GRACE OF MOSCOW YET THOSE SAME LEADERS ALSO BELIEVED THAT MOSCOW WOULD NEVER GRANT THIS GRACE WHO OPENED THE BERLIN WALL THE COMMUNIST AUTHORITIES OF EAST BERLIN WHY BECAUSE THE COMMUNIST AUTHORITIES OF MOSCOW THAT IS MIKHAIL GORBACHEV HAD DECIDED THAT CONTROL OF EAST GERMANY WAS NO LONGER IN THE INTERESTS OF THE SOVIET UNION THAT IN FACT THE U. S. S. R. STOOD TO GAIN FAR MORE IN AID GOODWILL AND PRESTIGE BY GIVING IT UP WHY DID MR. GORBACHEV THINK THIS IN PART BECAUSE COMMUNISM AS AN ECONOMIC SYSTEM WAS FAILING AND HE NEEDED TO RETRENCH BUT ALSO BECAUSE HE FACED THE CONSEQUENCES OF WHAT SOVIET LEADERS HAD LONG KNOWN ABOUT THE WEST THAT IT WAS NO THREAT TO THE SOVIET UNION THE THIRD IRONY IS THAT ALL THE GOODWILL AND AID IN THE WORLD DID NOT SAVE MR. GORBACHEV AND HIS BELOVED SOVIET UNION FROM COLLAPSE YET THIS COLLAPSE WAS NEITHER HIS INTENTION NOR THAT OF THE WEST GERMAN LEADERS WHO NEGOTIATED WITH HIM TO SECURE UNIFICATION THEY CAME TO HIM AS SUITORS NOT AS COLD WAR VICTORS THE STORY OF HOW DEMOCRATIC WEST GERMANY FOUNDED IN NINETEEN FORTY NINE BY THE WESTERN DEMOCRACIES AND THEIR GERMAN FRIENDS EVOLVED A SET OF POLICIES FOR DEALING WITH THE DIVISION OF GERMANY IS A VITAL PART OF THE HISTORICAL RECORD THE KEY TO THIS STORYAND WHAT HOLDS PERMANENT LESSONS FOR HOW DEMOCRACIES REACT TO THREATS HOW THEY APPROACH THEIR ENEMIES AND HOW THEY FIND A PATH THAT LEADS NEITHER TO APPEASEMENT NOR TO NEEDLESS PROVOCATION IS THE OSTPOLITIK EASTERN POLICY OF THE NINETEEN SIXTY NINE TO NINETEEN EIGHTY TWO SOCIAL DEMOCRATIC GOVERNMENT OF WILLY BRANDT AND HELMUT SCHMIDT AN INTELLECTUAL AND POLITICAL HISTORY OF THIS POLICY IS SORELY NEEDED ESPECIALLY IN THIS TIME OF POSTUNIFICATION DEPRESSION IN A GERMANY THAT SEEMS DETERMINED TO BECOME THE SICK MAN OF EUROPE IN THE NEXT CENTURY AS BRITAIN WAS IN THE SIXTIES AND SEVENTIES THE BRITISH WRITER TIMOTHY GARTON ASH JUSTLY WELL KNOWN FOR HIS ELEGANT LEARNED AND INFORMATIVE ESSAYS ON THE DEMOCRATIC TRANSFORMATIONS IN EASTERN EUROPE IN THE EIGHTIES AND ON THE PEOPLE IDEAS PASSIONS AND ASPIRATIONS THAT LAY BEHIND THOSE TRANSFORMATIONS HAS ATTEMPTED THIS TASK IN QUOTE IN EUROPE'S NAME QUOTE RANDOM HOUSE SIX HUNDRED EIGHTY EIGHT PAGES TWENTY SEVEN DOLLARS AND FIFTY CENTS THE RESULT IS ABSOLUTELY INDISPENSABLE FOR ANYONE TRYING TO UNDERSTAND OSTPOLITIK AND THE FATE OF GERMANY AND EUROPE AS A WHOLE IN THE TWO DECADES LEADING UP TO UNIFICATION BUT IT IS NOT THE DECISIVE INTERPRETATION THAT WE NEED MR. GARTON ASH HAS PUT GREAT CARE AND EFFORT INTO HIS WORK HE HAS INTERVIEWED AT LENGTH ALL THE LEADING ACTORS INCLUDING THE COMMUNIST RULERS OF EAST GERMANY HE HAS REFLECTED ON THE AMBIGUITIES OF WEST GERMAN LEADERS OBLIGED BOTH TO REASSURE THE SOVIETS THAT THEY WERE NO THREAT AND THE AMERICANS THAT THEY WERE NOT SLIPPING INTO NEUTRALITY OR APPEASEMENT HIS CHAPTERS OSTPOLITIK BONN MOSCOW BERLIN AND SECOND OSTPOLITIK CONSTITUTE A REFLECTIVE ACCOUNT OF EVENTS THAT SETS A STANDARD HOWEVER THIS IS NOT ENOUGH THE PROBLEM LIES IN THE AMBIVALENCE OF THE WEST GERMAN LEADERS THEMSELVES SEEING BY THE LATE SIXTIES THAT THE SOVIETS WERE NOT GOING TO PERMIT PEACEFUL UNIFICATION THEY SOUGHT DETENTE WITH THE COMMUNISTS IN THE INTERESTS OF STABILITY IN DOING SO THEY KNOWINGLY REJECTED THE CLAIMS OF THE PEOPLE OF EASTERN EUROPE INCLUDING EAST GERMANY FOR DEMOCRACY AND CIVIL RIGHTS AT WHAT POINT DID THIS GERMAN OBSESSION WITH STABILITY AND THE TENDER FEELINGS OF COMMUNIST RULERS BECOME COLLUSION WITH TYRANTS DID OSTPOLITIK DELAY OR BRING ABOUT DEMOCRACY AND UNIFICATION THE GERMANS THEMSELVES REFUSE TO SAY BUT THE HISTORIAN HAS AN OBLIGATION TO JUDGE MR. GARTON ASH SHIRKS THAT OBLIGATION IN HIS PRESENTATION OF ALL VIEWS THE RECORD I BELIEVE WILL SHOW THAT FOR ALL THE GOODWILL EVIDENT IN ITS BEGINNINGS OSTPOLITIK BECAME A STRATEGY FOR BUTTRESSING UNDEMOCRATIC REGIMES AGAINST THEIR OWN PEOPLE IN THE NAME OF THAT GREAT GERMAN IDOL STABILITY THE COMMUNIST RULERS WERE UNDER NO ILLUSION THAT WEST GERMANY WAS A THREAT THEY KNEW WHERE THEY HAD THE GERMANS THE FINAL IRONY OF HISTORY IS THAT THE GERMANS SOUGHT UNIFICATION AS SUPPLICANTS BUT IN VAIN THE SOVIET UNION HAS PERISHED IF NOT ALL ITS WORKS GERMANY REMAINS THE QUESTION FOR ALL OF US IS WHETHER IT WILL FACE THE CHALLENGE OF THE FUTURE TO ANSWER THE QUESTION WE HAVE MUCH INFORMATION IN THIS VALUABLE BOOK BUT PRECIOUS FEW REAL JUDGMENTS MR. GRESS IS CO AUTHOR WITH DENNIS L. BARK OF A HISTORY OF WEST GERMANY BLACKWELL WITH HIS STAGING OF QUOTE THE NUTCRACKER QUOTE FOR AMERICAN BALLET THEATRE KEVIN MCKENZIE JOINS THE RANKS OF THOSE DIRECTORS OF DANCE TROUPES WHO CANNOT CHOREOGRAPH BUT FEEL COMPELLED TO DO SO ANYWAY BETWEEN NINETEEN EIGHTY NINE AND NINETEEN NINETY TWO WHEN A. B. T. WAS LED BY JANE HERMAN THE COMPANY GOT BY WITHOUT A RESIDENT CHOREOGRAPHER MS. HERMAN INVITED GUEST ARTISTS TO CREATE NEW WORKS AND RESTAGE THE CLASSICS WHENEVER THE BOX OFFICE NEEDED STIMULATION TO THIS POLICY OF FREE LANCE CHOREOGRAPHY MR. MCKENZIE MS. HERMAN'S SUCCESSOR HAS LARGELY HEWED FOR A. B. T.'S FORTHCOMING SEASON AT THE METROPOLITAN OPERA HOUSE IN NEW YORK HE HAS COMMISSIONED PIECES FROM LAR LUBOVICH AND JAMES KUDELKA FOR THE NUTCRACKER HOWEVER HE TURNED NOT TO AN OUTSIDER BUT TO HIMSELF A SURPRISING CHOICE GIVEN HIS LACK OF EXPERIENCE AS A CHOREOGRAPHER AND THE NATURE OF THE BALLET IN QUESTION THE NUTCRACKER TCHAIKOVSKY'S FINAL BALLET IS THE ONLY FULL LENGTH NINETEENTH CENTURY CLASSIC IN THE INTERNATIONAL REPERTOIRE TO SURVIVE WITHOUT A GENERALLY ACCEPTED CHOREOGRAPHIC TEXT AS A RESULT ANYONE WHO HAS EVER STAGED THE WORK IN THIS COUNTRY WHETHER GEORGE BALANCHINE OR MARK MORRIS HAS NECESSARILY BEEN INVOLVED IN A COMPLEX CREATIVE TASK MR. MCKENZIE'S DETERMINATION TO UNDERTAKE THE ASSIGNMENT SUGGESTS EITHER THAT HE HAS A VERY HIGH OPINION OF HIS TALENT OR A VERY LOW OPINION OF THE BALLET A LOW OPINION OF IT THAT IS AS A WORK OF ART NO ONE COULD QUESTION ITS COMMERCIAL IMPORTANCE FOR A. B. T. WHICH IS STILL TRYING TO RECOVER FROM THE FINANCIAL AS WELL AS ARTISTIC DAMAGE IT SUSTAINED UNDER MS. HERMAN VIRTUALLY ANY PRODUCTION OF THE BALLET CAN BE GUARANTEED TO ATTRACT LARGE AUDIENCES AND WHEN MR. MCKENZIE TOOK CHARGE OF A. B. T. HE HAD NO NUTCRACKER TO PRESENT MIKHAIL BARYSHNIKOV HAD WITHDRAWN HIS VERSION OF THE WORK FROM THE COMPANY'S REPERTOIRE IN NINETEEN EIGHTY NINE WHEN HE WAS REPLACED AS DIRECTOR BY MS. HERMAN THOUGH MR. MCKENZIE'S PRODUCTION WAS LAUNCHED AT THE ORANGE COUNTY PERFORMING ARTS CENTER IN DECEMBER AT THE VERY HEIGHT THAT IS OF THE ANNUAL NUTCRACKER MANIA IT WAS EVIDENTLY DESIGNED TO BE PART OF A. B. T.'S YEAR ROUND OFFERINGS AND WILL FIGURE PROMINENTLY IN THE COMPANY'S LINCOLN CENTER SEASON NO DOUBT IT IS FOR THIS REASON THAT IN ACT TWO WINTER GIVES WAY TO SPRING ALBEIT ARBITRARILY AND IN VIOLATION OF THE BALLET'S OVERALL MOOD THOUGH IT IS HARD TO TALK OF AN OVERALL MOOD IN A PRODUCTION SO MARKED BY DISARRAY CONFUSINGLY NARRATED MUSICALLY BARBAROUS VULGARLY DESIGNED AND SO CHOREOGRAPHICALLY INEPT THAT EVEN FINE DANCERS SUCH AS JULIE KENT AND PALOMA HERRERA LOOKED LOST THIS NUTCRACKER IS AS ARTISTICALLY NULL AS ANYTHING PRESENTED BY A. B. T. DURING ITS ERRATIC FIFTY FOUR YEAR HISTORY BASIC TO THIS MISADVENTURE IS MR. MCKENZIE'S FAILURE TO UNDERSTAND THAT THE BALLET'S ESSENTIAL SUBJECT IS TCHAIKOVSKY'S MUSIC THE ORIGINAL SCENARIO THOUGH IMPLICITLY A FABLE OF MATURATION IS SLIGHT UNRESONANT SHORT BREATHED BY THE END OF ACT ONE THE STORY SUCH AS IT IS IS OVER ACT TWO SET IN CANDY LAND CONSISTS OF A DIVERTISSEMENT GIVEN TO HONOR CLARA AND THE NUTCRACKER FOR HAVING SURVIVED WITH COURAGE AND GRACE THE ONSLAUGHT OF THE MICE IN ACT ONE BUT THE ENTERTAINMENT PROVIDED FOR THEM IS IRRELEVANT TO THEIR DEEDS INSTEAD OF AMPLIFYING THE DEEDS' SIGNIFICANCE IT REDUCES IT SEATED THROUGHOUT THE ACT AT A TABLE PILED WITH SWEETMEATS THEY ARE NOT SO MUCH GUESTS OF HONOR AS COUCH POTATOES EVEN IN ACT ONE NARRATIVE IS LESS IMPORTANT THAN ATMOSPHERE AND SITUATION WHAT AFFECTS US MOST ARE SUCH THINGS AS THE PARTY GAMES THE CHILDREN'S EXCITEMENT THE MACABRE MOOD INTRODUCED BY CLARA'S GODFATHER DROSSELMEYER THROUGH WHOM WE ENCOUNTER THE TERRORS THAT LURK BEHIND THE SECURITY OF A BOURGEOIS HOUSEHOLD THE SUDDEN ENLARGEMENT OF THE MILIEU OF CHILDHOOD THE MAGICAL JOURNEY OF CLARA AND THE NUTCRACKER PRINCE THROUGH THE LAND OF SNOW ALL THIS TCHAIKOVSKY BODIES FORTH IN MUSIC OF SUCH POETIC VIVIDNESS THAT IT CARRIES THE ENTIRE EVENING THE EPISODE OF THE CHRISTMAS TREE IN PARTICULAR IS ONE OF THE MIRACLES OF LYRIC THEATER IN FORTY EIGHT BARS OF SURGING MELODY THE TREE BECOMES COLOSSAL AND CLARA'S WORLD IS TRANSFORMED FROM THE FAMILIAL TO THE HEROIC THE EPISODE IS SO RICH IN MEANING SO FULL OF PASSIONATE INTENSITY THAT MATCHED WITH APPROPRIATE STAGE ACTION IT REAWAKENS ONE'S LONG LOST SENSE OF CHILDHOOD WONDER BUT APPROPRIATE STAGE ACTION IS PRECISELY WHAT MR. MCKENZIE FAILS TO SUPPLY INSTEAD OF ENSURING THAT THE TREE REACHES ITS FULL ASTONISHING HEIGHT AS THE MUSIC RISES TO A CLIMAX THE CHOREOGRAPHER CONCLUDES ITS GROWTH HALFWAY THROUGH THE PASSAGE FOR THE GLORIOUS CRESCENDO WITH WHICH TCHAIKOVSKY BRINGS THIS EXTRAORDINARY SCENE TO A CLOSE MR. MCKENZIE HAS DEVISED SOME INCONSEQUENTIAL ACTION INVOLVING THE RATS WHO HAVE CONGREGATED AT THE FOOT OF THE TREE THE PRODUCTION AS A WHOLE IS MARKED BY MUSICAL INSENSITIVITY THE SOLEMN ADAGIO OF THE GRAND PAS DE DEUX FOR THE SUGAR PLUM FAIRY AND HER CAVALIER COMES AFTERAND NOT AS TCHAIKOVSKY INTENDED BEFORE THEIR SOLOS MR. MCKENZIE HAS ALSO MADE CUTS THROUGHOUT THE SCORE AS WELL AS TRANSPOSITIONS THE MOST STARTLING OF WHICH IS THE USE OF THE MUSIC FOR MOTHER GINGER AND HER CHILDREN FOR THE FINAL ENSEMBLE OF ACT TWO IT IS THE GENIUS OF TCHAIKOVSKY THAT MITIGATES THE WEAKNESS OF PETIPA'S SCENARIO AND GIVES THIS BALLET THE BLEND OF FEELING AND ENCHANTMENT THAT HAS MADE IT A CLASSIC UNFORTUNATELY MR. MCKENZIE HAS USED THE MUSIC NOT AS AN EMOTIONAL RESOURCE OR A GUIDE TO ATMOSPHERE AND MOOD BUT AS A BACKGROUND FOR SITUATIONS THAT MOSTLY HAVE NOTHING TO DO WITH ITS CHARACTER AND STYLE INSTEAD OF LISTENING TO TCHAIKOVSKY MR. MCKENZIE HAS LISTENED TO WENDY WASSERSTEIN AUTHOR OF QUOTE THE SISTERS ROSENSWEIG QUOTE WHOM HE INVITED TO ENDOW PETIPA'S SIMPLE NARRATIVE WITH GREATER COMPLEXITY OF THEME AND WITH WHAT SEEMS TO HAVE BEEN INTENDED AS PSYCHOLOGICAL PLAUSIBILITY BUT WHICH COMES OVER AS UNNECESSARY COMPLICATION THUS CLARA IS INVOLVED IN NOT ONE BUT TWO BATTLES WITH THE RATS IN THE FIRST SHE SAVES THE NUTCRACKER AND IN THE SECOND SHE ENSURES HIS TRANSFORMATION INTO THE PRINCE BY SHOWING HIM COMPASSION IN THE EPILOGUE HE IS AGAIN TRANSFORMED THIS TIME INTO DROSSELMEYER'S SON WHO HANDS HER A BOUQUET AS THE CURTAIN FALLS LIKE MOST OF WHAT COMES BEFORE THIS IS NOT MERELY CONFUSING IT IS ALSO PEDESTRIAN THE FOREIGN MONEY FLOODING INTO TAIWAN'S STOCK MARKET HAS HELPED LIFT THE SHARES OF ACER INCORPORATED THE COUNTRY'S LARGEST COMPUTER MAKER MORE THAN FORTY PERCENT SINCE EARLY DECEMBER BUT IT ISN'T ACER'S CORE PERSONAL COMPUTER BUSINESS THAT IS ATTRACTING FOREIGN AS WELL AS DOMESTIC INVESTORS INSTEAD IT IS THE BIG EARNINGS GAINS FROM ACER'S RECENT LAND SALES AND ITS MAJORITY STAKE IN T. I. SLASH ACER INCORPORATED A LUCRATIVE JOINT VENTURE WITH TEXAS INSTRUMENTS INCORPORATED OF THE U. S. THAT IS TAIWAN'S ONLY MAKER OF DYNAMIC RANDOM ACCESS MEMORY CHIPS OR DRAMS THE MEMORIES OF COMPUTERS AS A RESULT FOREIGN INVESTORS HAVE SNAPPED UP NEARLY ALL OF THE TEN PERCENT OF ACER SHARES OUTSTANDING THAT THEY ARE ALLOWED TO BUY UNDER TAIWANESE REGULATIONS THE COMPANY'S SHARES CLOSED THURSDAY AT FORTY EIGHT POINT THREE OH NEW TAIWAN DOLLARS ONE U. S. DOLLAR AND EIGHTY FOUR CENTS DOWN FROM N. T. FIFTY ONE DOLLARS AND FIFTY CENTS THE DAY BEFORE INVESTORS VIEW ACER'S CORE P. C. BUSINESS WITH SKEPTICISM PARTICULARLY AFTER WATCHING THE COMPANY LEAP FROM STRATEGY TO STRATEGY OVER THE PAST FEW YEARS AMID VICIOUS GLOBAL COMPETITION QUOTE DEFINITELY P. C.S ARE NOT THE REASON TO BUY ACER QUOTE SAYS JONATHAN ROSS TAIWAN COUNTRY MANAGER FOR H. G. ASIA SECURITIES TAIWAN LIMITED YOU'RE BUYING FIFTY EIGHT PERCENT OF A DRAM MANUFACTURER ESSENTIALLY BEN LEE AN ANALYST WITH WARDLEY JAMES CAPEL TAIWAN LIMITED ADDS MAYBE IT IS A SHORT TERM SPECULATIVE BUY BASED ON ASSET SALES BUT FROM A LONG TERM PERSPECTIVE I STILL HOLD MANY DOUBTS ABOUT THE COMPANY'S FUTURE ACER CHAIRMAN STAN SHIH DOESN'T SEE IT THAT WAY WHILE ACKNOWLEDGING THAT THE COMPANY HAS RELIED ON LAND SALES AND CHIPS TO BOOST EARNINGS IN THE PAST FEW YEARS HE SAYS ACER'S MAINSTREAM BUSINESS WILL COME BACK STRONG THIS YEAR AS FOR THE VIEW THAT INVESTORS DON'T BUY ACER FOR ITS COMPUTERS HE SAYS I DON'T THINK THIS WILL BE TRUE IN THE FUTURE MAYBE WE STILL HAVE SOME LAND TO SELL BUT THE REAL POTENTIAL IS IN ALL OUR CORE BUSINESSES IN AN INTERVIEW AT ACER'S NEW DOWNTOWN TAIPEI OFFICES OCCUPIED AFTER THE SALE OF THE COMPANY'S SUBURBAN HEADQUARTERS MR. SHIH SAYS ACER EXPECTS ITS PRODUCTION OF MOTHERBOARDS THE COMBINATIONS OF INTEGRATED CIRCUITS THAT SERVE AS THE BRAIN OF A P. C. TO INCREASE FIFTY PERCENT THIS YEAR AFTER TRIPLING LAST YEAR OUTPUT OF NOTEBOOK COMPUTERS WITH ACER'S BRAND NAME AND FOR OTHER COMPANIES IS EXPECTED TO DOUBLE AFTER ALSO TRIPLING LAST YEAR HE SAYS THESE MASS PRODUCED GOODS ALONG WITH SUCH SPECIALIZED PRODUCTS AS MULTIMEDIA P. C.S AND COMPUTERS BASED ON REDUCED INSTRUCTION SET COMPUTING OR RISC CHIPS WILL DRIVE ACER'S EARNINGS TO A RECORD N. T. ONE POINT FIVE BILLION DOLLARS THIS YEAR MR. SHIH SAYS TUESDAY ACER ANNOUNCED THAT PARENT COMPANY EARNINGS IN NINETEEN NINETY THREE ROSE ONE THOUSAND EIGHT HUNDRED TWENTY NINE PERCENT FROM A YEAR EARLIER TO N. T. ONE POINT OH EIGHT BILLION DOLLARS ON A FIFTY SIX POINT FIVE PERCENT GAIN IN SALES TO N. T. NINETEEN POINT FOUR BILLION DOLLARS THE COMPANY PROJECTS THAT SALES THIS YEAR WILL RISE ABOUT TWO POINT FIVE PERCENT TO N. T. TWENTY BILLION DOLLARS THE FORTY NINE YEAR OLD MR. SHIH WHO STILL LOOKS LIKE THE YOUNG ELECTRICAL ENGINEER HE WAS WHEN HE STARTED ACER IN A GARAGE IN THE NINETEEN SEVENTIES INSISTS THAT THE COMPANY'S EARNINGS WILL CLIMB NEARLY FORTY PERCENT THIS YEAR SOME OF THE INCREASE HE SAYS WILL COME FROM EVER IMPROVING ECONOMIES OF SCALE AND THE ELIMINATION OF HEAVY LOSSES IN THE COMPANY'S U. S. AND EUROPEAN OPERATIONS LAST YEAR THOSE TWO REGIONS INCURRED LOSSES OF SOME N. T. EIGHT HUNDRED MILLION DOLLARS LARGELY THE LEGACY OF ACER'S EFFORTS TO BREAK INTO THE U. S. MARKET THROUGH TAKEOVERS AND ILL ADVISED EXPANSION MR. SHIH SAYS ACER'S OVERALL MANUFACTURING OPERATIONS EXCLUDING PERIPHERALS TURNED A PROFIT OF N. T. TWENTY MILLION DOLLARS LAST YEAR ANALYSTS TAKE A LESS ROSY VIEW OF THE PROSPECTS FOR ACER'S COMPUTER BUSINESS THEY NOTE THAT COMPUTER MAKERS WORLDWIDE HAVE BEEN BUFFETED BY FIERCE COMPETITION FOR THE PAST THREE YEARS AND THAT EVEN WITH A SOLID INCREASE IN COMPUTER AND RELATED SALES LAST YEAR INDUSTRY EARNINGS GROWTH HAS BEEN SLIM BECAUSE OF TIGHT PROFIT MARGINS MANY ANALYSTS WORRY THAT ANOTHER ROUND OF PRICE CUTTING COULD BE COMING THIS YEAR WHICH COULD CUT INTO PROFIT EVEN MORE MOST OF MY CLIENTS AREN'T TOO ENTHUSIASTIC ABOUT P. C. MANUFACTURERS IN GENERAL SAYS MR. ROSS OF H. G. ASIA MR. LEE OF WARDLEY JAMES CAPEL SAYS ACER'S PROFIT MARGINS HAVE DECLINED STEADILY IN THE PAST THREE YEARS TO ONE POINT NINE NINE PERCENT IN THE FIRST NINE MONTHS OF NINETEEN NINETY THREE FROM FOUR POINT SEVEN PERCENT IN NINETEEN NINETY ONE BUT MR. SHIH SAYS THE COMPANY HAS OFFSET THAT TREND BY MASS PRODUCING COMPUTER PRODUCTS MEANWHILE THE FACTORS THAT HAVE LURED INVESTORS TO ACER'S STOCK WILL LOSE SOME OF THEIR APPEAL THIS YEAR IN THE PAST TWO YEARS LAND SALES NETTED THE COMPANY NEARLY N. T. ONE BILLION DOLLARS IN EXTRAORDINARY INCOME BUT ACER PLANS TO HOLD ON TO MOST OF WHAT REMAINS IN ITS LAND BANK AT THE SAME TIME MR. SHIH EXPECTS THAT THE RAPID INCREASE IN PROFIT FROM T. I. SLASH ACER LIKELY WILL LEVEL OFF EARNINGS FROM THAT VENTURE LAST YEAR CONTRIBUTED NEARLY N. T. EIGHT HUNDRED MILLION DOLLARS TO ACER'S PROFIT THE FIRST TIME THAT T. I. SLASH ACER HAS TURNED A PROFIT SINCE IT BEGAN OPERATIONS IN NINETEEN NINETY ONE MR. SHIH SAYS THE COMPANY IS PROJECTING SIMILAR RETURNS THIS YEAR HE SAYS AN EXPECTED INCREASE IN OUTPUT TO ABOUT THREE MILLION CHIPS A MONTH FROM THE CURRENT LEVEL OF ABOUT TWO MILLION SHOULD BE OFFSET BY A PROJECTED SECOND HALF DECLINE IN DRAM PRICES HE ADDS HOWEVER THAT THE COMPANY'S PROJECTION MAY BE TOO CONSERVATIVE MR. LEE OF WARDLEY JAMES CAPEL SAYS INVESTORS SEE ANOTHER BENEFIT TO HOLDING ACER SHARES IN COMING YEARS THE PROSPECT OF THE COMPANY LISTING SUBSIDIARIES ON THE TAIWAN STOCK EXCHANGE MR. SHIH CONFIRMS THAT THE COMPANY PLANS TO SUBMIT APPLICATIONS TO TAIWAN'S SECURITIES AND EXCHANGE COMMISSION DURING THE SECOND QUARTER OF THE YEAR TO LIST TWO UNITS ONE IS ACER PERIPHERALS INCORPORATED A FORTY NINE PERCENT OWNED SUBSIDIARY THAT MAKES MONITORS KEYBOARDS FAX MACHINES AND OTHER PRODUCTS SOME TWENTY PERCENT OF ACER PERIPHERAL'S SHARES WOULD BE SOLD TO THE PUBLIC THE UNIT LAST YEAR EARNED N. T. FOUR HUNDRED SEVENTY MILLION DOLLARS AND MR. SHIH SAYS ITS PROFIT THIS YEAR IS PROJECTED AT N. T. FIVE HUNDRED FORTY MILLION DOLLARS THE SECOND SUBSIDIARY THAT ACER WOULD LIKE TO SEE LISTED IS ACER SERTEK INCORPORATED A FORTY NINE PERCENT OWNED TRADING COMPANY THAT MARKETS ACER PRODUCTS AND MANY IMPORTED HIGHTECHNOLOGY PRODUCTS IN TAIWAN BOTH SPINOFFS WOULD ADD BIG ONE TIME GAINS TO ACER'S NINETEEN NINETY FOUR EARNINGS AND THE COMPANIES WOULD CONTINUE TO CONTRIBUTE OPERATING EARNINGS ONE REASON ACER PROJECTS THAT ITS SALES WILL INCREASE ONLY TWO POINT FIVE PERCENT THIS YEAR IS THAT IF THE TWO SUBSIDIARIES ARE LISTED THEIR REVENUE WOULD NO LONGER BE REFLECTED IN THE PARENT COMPANY'S SALES TOTALS SUCH REVENUE WOULD HOWEVER FALL UNDER TOTAL ACER GROUP SALES WHICH ARE PROJECTED TO RISE TWENTY FIVE PERCENT THIS YEAR TO N. T. SIXTY TWO POINT FIVE BILLION DOLLARS FROM N. T. FIFTY BILLION DOLLARS IN NINETEEN NINETY THREE MANY ANALYSTS SAY THEY LOOK FORWARD TO THE DAY THAT T. I. SLASH ACER IS LISTED BUT MR. SHIH SAYS THAT THAT STEP PROBABLY WON'T COME UNTIL AFTER NINETEEN NINETY SEVEN THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED MILLION DOLLARS OF STEP UP NOTES DUE JANUARY TWENTY SEVENTH NINETEEN NINETY SEVEN PRICED AT PAR TO YIELD FOUR POINT ONE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE BONDS NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF SIXTY FIVE BASIS POINTS ABOVE TREASURYS THE COUPON WILL RISE AFTER ONE YEAR TO FOUR POINT EIGHT TWO PERCENT THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED FEDERAL HOME LOAN BANK SYSTEM SEVENTY FIVE MILLION DOLLARS OF NOTES DUE JANUARY TWENTY FOURTH NINETEEN NINETY SEVEN PRICED AT PAR TO YIELD FOUR POINT FIVE THREE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF FIFTEEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INCORPORATED FEDERAL HOME LOAN MORTGAGE CORPORATION TWO HUNDRED MILLION DOLLARS OF DEBENTURES DUE JANUARY TWENTY FIRST TWO THOUSAND FOUR PRICED AT PAR TO YIELD SIX POINT ONE NINE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF FIFTY SIX BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED HEILEMAN ACQUISITION COMPANY ONE HUNDRED SIXTY MILLION DOLLARS OF SENIOR SUBORDINATED NOTES DUE JANUARY THIRTY FIRST TWO THOUSAND FOUR PRICED AT PAR TO YIELD NINE POINT SIX TWO FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR FOUR YEARS WERE PRICED AT A SPREAD OF FOUR HUNDRED BASIS POINTS ABOVE TREASURYS THE NOTES HAVE A THREE YEAR INITIAL PUBLIC OFFERING CALL OPTION FOR UP TO THIRTY FIVE PERCENT OF THE ISSUE RATED SINGLE B. THREE BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE B. MINUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY B. T. SECURITIES CORPORATION HEILEMAN ACQUISITION COMPANY IS AN AFFILIATE OF HICKS MUSE AND COMPANY J. P. MORGAN AND COMPANY THREE HUNDRED MILLION DOLLARS OF NOTES DUE JANUARY FIFTEENTH TWO THOUSAND NINE PRICED AT NINETY NINE POINT EIGHT EIGHT EIGHT TO YIELD SIX POINT TWO SIX TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FIFTY NINE BASIS POINTS ABOVE TREASURYS RATED DOUBLE A TWO BY MOODY'S AND DOUBLE A PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY J. P. MORGAN AND COMPANY MERRILL LYNCH AND COMPANY TWO HUNDRED MILLION DOLLARS OF NOTES DUE JANUARY FIFTEENTH TWO THOUSAND SIX PRICED AS SIX POINT TWO FIVES AT NINETY NINE POINT THREE FOUR TO YIELD SIX POINT THREE THREE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SEVENTY BASIS POINTS ABOVE TREASURYS RATED SINGLE A ONE BY MOODY'S AND SINGLE A PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY NEWS AMERICA HOLDINGS INCORPORATED TWO HUNDRED MILLION DOLLARS OF DEBENTURES DUE JANUARY TWENTIETH TWO THOUSAND TWENTY FOUR PRICED AT PAR TO YIELD SEVEN POINT SEVEN FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF ONE HUNDRED FORTY SEVEN BASIS POINTS ABOVE TREASURYS RATED B. A. ONE BY MOODY'S AND TRIPLE B. MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY NEWS AMERICA HOLDINGS IS A UNIT OF NEWS CORPORATION PROVIDENT BANK ONE HUNDRED MILLION DOLLARS OF SUBORDINATED BANK NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS SIX POINT THREE SEVEN FIVES AT NINETY NINE POINT THREE FIVE TO YIELD SIX POINT FOUR SIX FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF EIGHTY BASIS POINTS ABOVE TREASURYS RATED B. A. A. THREE BY MOODY'S AND TRIPLE B. MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED PROVIDENT BANK IS A UNIT OF PROVIDENT BANCORP STUDENT LOAN MARKETING CORPORATION ONE HUNDRED MILLION DOLLARS OF FLOATING RATE NOTES PRICED WITH A COUPON SEVENTY FIVE BASIS POINTS ABOVE THE THREE MONTH LONDON INTERBANK OFFERED RATE OR FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY C. S. FIRST BOSTON INCORPORATED FEDERAL HOME LOAN MORTGAGE CORPORATION FIVE HUNDRED TEN MILLION DOLLARS OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INCORPORATED THE OFFERING SERIES ONE THOUSAND SIX HUNDRED SEVENTY NINE IS BACKED BY THE AGENCY'S FIFTEEN YEAR SIX PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SIX POINT SIX FIVE PERCENT AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF ONE HUNDRED SEVENTY NINE MONTHS FEDERAL HOME LOAN MORTGAGE CORPORATION FIVE HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY PAINEWEBBER INCORPORATED THE OFFERING SERIES ONE THOUSAND SIX HUNDRED SEVENTY FIVE IS BACKED BY THE AGENCY'S THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT ONE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY NINE MONTHS FEDERAL HOME LOAN MORTGAGE CORPORATION THREE HUNDRED MILLION DOLLARS OF REMIC SECURITIES OFFERED BY MORGAN STANLEY AND COMPANY THE OFFERING SERIES ONE THOUSAND SIX HUNDRED SEVENTY SIX IS BACKED BY THE AGENCY'S THIRTY YEAR SIX POINT FIVE PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT ONE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY NINE MONTHS GENERAL MOTORS ACCEPTANCE CORPORATION ONE POINT THREE EIGHT BILLION DOLLAR TWO PART OFFERING BACKED BY WHOLESALE AUTO RECEIVABLES CORPORATION DEALER FLOOR PLAN RECEIVABLES PRICED BY UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED THE SECURITIES ACCORDING TO M. C. M. CORPORATEWATCH ARE BEING OFFERED THROUGH A SPECIAL PURPOSE TRUST SUPERIOR WHOLESALE INVENTORY FINANCING TRUST ONE THERE ARE ONE POINT TWO FIVE BILLION DOLLARS NINETEEN NINETY FOUR A OF TERM NOTES RATED TRIPLE A ONE BY MOODY'S AND S. AND P. PRICED AT ONE HUNDRED TO FLOAT FIFTEEN BASIS POINTS ABOVE THE ONE MONTH LIBOR INITIAL COUPON IS THREE POINT TWO SEVEN FIVE PERCENT THE NOTES HAVE A THREE POINT OH SEVEN YEAR AVERAGE LIFE AN EXPECTED FINAL MATURITY OF MARCH FIFTEENTH NINETEEN NINETY SEVEN AND LEGAL FINAL MATURITY OF JANUARY FIFTEENTH NINETEEN NINETY NINE ADDED CREDIT ENHANCEMENT INCLUDES A ONE HUNDRED THIRTY TWO MILLION DOLLAR SUBCLASS AND TWO HUNDRED THIRTY SIX POINT EIGHT EIGHT MILLION DOLLAR RESERVE ACCOUNT THERE ALSO ARE ONE HUNDRED THIRTY TWO MILLION DOLLARS OF SUBORDINATED CERTIFICATES RATED SINGLE A TWO BY MOODY'S AND SINGLE A ONE BY S. AND P. THEY ARE PRICED AT ONE HUNDRED WITH AN INITIAL COUPON OF THREE POINT FIVE SEVEN FIVE PERCENT TO FLOAT FORTY FIVE BASIS POINTS ABOVE ONE MONTH LIBOR THESE CERTIFICATES HAVE AN EXPECTED BULLET MATURITY OF MARCH FIRST NINETEEN NINETY SEVEN AND LEGAL FINAL MATURITY OF JANUARY FIFTEENTH NINETEEN NINETY NINE THERE ALSO IS A RESERVE ACCOUNT ENHANCING THE CERTIFICATES GENERAL MOTORS ACCEPTANCE IS A UNIT OF GENERAL MOTORS CORPORATION ABBEY NATIONAL TREASURY SERVICES P. L. C. U. K. PARENT FIVE HUNDRED MILLION POUNDS OF SIX PERCENT EUROBONDS DUE AUGUST TENTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT ONE NINE VIA J. P. MORGAN SECURITIES LIMITED AND SAMUEL MONTAGU AND COMPANY BONDS YIELD SIX POINT ONE EIGHT PERCENT A MARGIN OF THIRTY BASIS POINTS OVER COMPARABLE U. K. GILT GUARANTOR ABBEY NATIONAL P. L. C. FEES ZERO POINT TWO SEVEN FIVE BANCO A. B. C. ROMA BRAZIL FIFTY MILLION DOLLARS OF NINE POINT ONE TWO FIVE PERCENT EUROBONDS DUE JANUARY TWENTIETH NINETEEN NINETY SEVEN AT ISSUE AND REOFFER PRICE NINETY NINE POINT SEVEN FIVE SIX VIA BEAR STEARNS INTERNATIONAL BONDS YIELD NINE POINT TWO TWO PERCENT A MARGIN OF FOUR HUNDRED EIGHTY FIVE BASIS POINTS OVER COMPARABLE U. S. TREASURY FEES ONE PAYABLE SEMIANNUALLY BARINGS P. L. C. U. K. ONE HUNDRED MILLION POUNDS OF UNDATED NINE POINT TWO FIVE PERCENT EUROBONDS AT ISSUE AND REOFFER PRICE NINETY NINE POINT FIVE NINE EIGHT VIA BARING BROTHERS AND COMPANY AND HOARE GOVETT SECURITIES LIMITED BONDS YIELD NINE POINT TWO NINE FIVE PERCENT ANNUALLY A MARGIN OF ABOUT TWO HUNDRED FIFTY FIVE BASIS POINTS OVER EIGHT POINT SEVEN FIVE PERCENT U. K. GILT DUE TWO THOUSAND SEVENTEEN BONDS CALLABLE ON DECEMBER FIFTEENTH TWO THOUSAND TWENTY FOUR AND EVERY FIFTEEN YEARS THEREAFTER FEES UNDISCLOSED CANADA SOVEREIGN TWO BILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT SEVEN SEVEN VIA C. S. FIRST BOSTON GOLDMAN SACHS INTERNATIONAL LIMITED AND U. B. S. LIMITED PAYABLE QUARTERLY AT ZERO POINT TWO FIVE POINT BELOW THREE MONTH DOLLAR LIBOR CALLABLE QUARTERLY AT PAR FROM FEBRUARY NINETEEN NINETY FIVE FEES ZERO POINT ONE FIVE DE NATIONALE INVESTERINGSBANK N. V. DUTCH AGENCY ONE HUNDRED FIFTY MILLION DUTCH GUILDERS OF SIX PERCENT EUROBONDS DUE FEBRUARY NINTH NINETEEN NINETY FIVE AT ISSUE PRICE ONE HUNDRED POINT SEVEN SEVEN FIVE VIA DE NATIONALE INVESTERINGSBANK N. V. AND MORGAN STANLEY INTERNATIONAL LIMITED REOFFERED AT PAR TO YIELD SIX PERCENT REPAYMENT BASED ON FORMULA ONE HUNDRED PERCENT PLUS TOTAL OF TWENTY TIMES DIFFERENCE BETWEEN FIVE POINT ONE FOUR PERCENT MINUS FIVE YEAR GUILDER OFFER SWAP MINIMUM ZERO FEES ZERO POINT EIGHT SEVEN FIVE DEUTSCHE BAU UND BODEN BANK A. G. GERMANY ONE HUNDRED MILLION MARKS OF FLOATING RATE EURONOTES DUE FEBRUARY SECOND TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT OH FIVE VIA TRINKAUS AND BURKHARDT K. G. A. A. PAYABLE SEMIANNUALLY AT SIX MONTH MARK LIBOR PLUS ZERO POINT ZERO SIX TWO FIVE POINT FEES ZERO POINT TWO DEUTSCHE AUSGLEICHBANK GERMANY ONE HUNDRED MILLION MARKS OF REVERSE COUPON FLOATING RATE EURONOTES DUE FEBRUARY SECOND TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT SEVEN FIVE VIA TRINKAUS AND BURKHARDT K. G. A. A. ANNUAL COUPON FIVE POINT ONE TWO FIVE PERCENT FIRST TWO YEARS SEMIANNUAL COUPON SIX MONTH LONDON MARK LIBOR FLAT YEARS THREE TO SIX ANNUAL COUPON SEVEN PERCENT THEREAFTER FEES TWO POINT TWO FRANCE TELECOM FRANCE TWO HUNDRED MILLION SWISS FRANCS OF FOUR POINT ONE TWO FIVE PERCENT PUBLIC BONDS DUE OCTOBER NINETEENTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED FOUR POINT ONE TWO FIVE VIA CREDIT SUISSE FEES TWO POINT TWO FIVE GASCART S. A. ARGENTINA FIFTY MILLION DOLLARS OF NINE PERCENT EUROBONDS DUE JANUARY TWENTIETH NINETEEN NINETY NINE AT ISSUE REOFFER PRICE PAR VIA OPPENHEIMER INTERNATIONAL BONDS YIELD MARGIN OF FOUR HUNDRED TWENTY EIGHT BASIS POINTS OVER COMPARABLE U. S. TREASURY BONDS BEGIN TO AMORTIZE IN NINETEEN NINETY SIX FEES ONE POINT TWO FIVE PAYABLE SEMIANNUALLY GOLDMAN SACHS GROUP L. P. U. S. PARENT TWO HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY FIRST NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT NINE VIA GOLDMAN SACHS INTERNATIONAL LIMITED PAYABLE QUARTERLY AT ZERO POINT THREE SEVEN FIVE POINT ABOVE THREE MONTH DOLLAR LIBOR BONDS CALLABLE QUARTERLY FROM FEBRUARY FIRST NINETEEN NINETY SIX FEES ZERO POINT TWO INDUSTRIAS UNIDAS S. A. MEXICO FIFTY MILLION DOLLARS OF EIGHT POINT FIVE PERCENT EUROBONDS DUE JANUARY TWENTY SEVENTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT NINE THREE VIA PRUDENTIAL BACHE SECURITIES U. K. INCORPORATED BONDS YIELD EIGHT POINT FIVE TWO PERCENT A MARGIN OF THREE HUNDRED FIFTY BASIS POINTS OVER COMPARABLE U. S. TREASURY GUARANTOR COBRA DE PASTJE AND TUBO DE PASTJE FEES ONE PAYABLE SEMIANNUALLY INVESTOR A. B. SWEDEN TWO HUNDRED MILLION DOLLARS OF SIX POINT ONE TWO FIVE PERCENT EUROBONDS DUE JANUARY TWENTY SEVENTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED POINT NINE SIX VIA C. S. FIRST BOSTON REOFFERED AT NINETY NINE POINT FOUR SIX TO YIELD SIX POINT TWO FIVE PERCENT A MARGIN OF ONE HUNDRED THIRTEEN BASIS POINTS OVER COMPARABLE U. S. TREASURY FEES ONE POINT EIGHT SEVEN FIVE I. M. I. BANK INTERNATIONAL CAYMAN ISLANDS ITALIAN PARENT THREE HUNDRED BILLION ITALIAN LIRE OF EIGHT PERCENT EUROBONDS DUE MARCH FIRST NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED ONE POINT FOUR VIA I. M. I. BANK LUXEMBOURG S. A. REOFFERED AT NINETY NINE POINT EIGHT FIVE TO YIELD EIGHT POINT OH FOUR PERCENT GUARANTOR ISTITUTO MOBILIARE ITALIANO COMPANY FEES ONE POINT EIGHT SEVEN FIVE INTER AMERICAN DEVELOPMENT BANK SUPRANATIONAL TWO HUNDRED FIFTY BILLION LIRE SEVEN POINT SEVEN PERCENT EUROBONDS DUE FEBRUARY THIRD TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT EIGHT FIVE VIA J. P. MORGAN SECURITIES LIMITED BONDS YIELD SEVEN POINT SEVEN TWO PERCENT AFTER FEES OF TWO IRISH PERMANENT BUILDING SOCIETY IRELAND SIXTY MILLION IRISH PUNTS OF SIX POINT FIVE PERCENT EUROBONDS DUE FEBRUARY TENTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT SIX SIX VIA RIADA STOCKBROKERS BONDS YIELD SIX POINT FIVE EIGHT PERCENT A MARGIN OF EIGHTY BASIS POINTS OVER COMPARABLE IRISH GILT FEES UNDISCLOSED NEW ZEALAND SOVEREIGN TEN BILLION YEN OF FLOATING RATE EURONOTES DUE JANUARY TWENTY SIXTH TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED EIGHT POINT SEVEN VIA NIKKO EUROPE P. L. C. PAYABLE SEMIANNUALLY AT SIX MONTH YEN LIBOR PLUS ONE FEES UNDISCLOSED HASBRO INCORPORATED SAID IT EXPECTS TO REPORT FOURTH QUARTER NET INCOME OF ABOUT SEVENTY FIVE CENTS A SHARE AFTER TAKING A ONE TIME FIFTEEN MILLION DOLLAR CHARGE OR NINE CENTS A SHARE AS A RESULT OF CLOSING ONE OF ITS PLANTS IN THE NETHERLANDS THAT COMPARES WITH EARNINGS OF SEVENTY THREE CENTS A SHARE FOR THE NINETEEN NINETY TWO FOURTH QUARTER THE PAWTUCKET R. I. TOY MAKER ALSO SAID IT EXPECTS TO REPORT ITS FOURTH QUARTER REVENUE CLIMBED MORE THAN TEN PERCENT FROM NINETEEN NINETY TWO FOURTH QUARTER REVENUE OF EIGHT HUNDRED THIRTY ONE POINT THREE MILLION DOLLARS THE COMPANY SAID IT DECIDED TO CLOSE THE NETHERLANDS FACILITY WHICH EMPLOYS ONE HUNDRED SIXTY TWO PEOPLE TO CONSOLIDATE ITS EUROPEAN OPERATIONS JILL KRUTICK A SALOMON BROTHERS INCORPORATED ANALYST SAID THE PLANT CLOSURE SHOULD GENERATE SAVINGS FOR HASBRO BY THE END OF NINETEEN NINETY FIVE IMPERIAL OIL LIMITED SAID IT PLANS TO QUIT THE FERTILIZER MANUFACTURING BUSINESS BY SELLING MOST OF ITS FERTILIZER ASSETS TO SHERRITT INCORPORATED IN A TRANSACTION THAT WOULD MORE THAN DOUBLE SHERRITT'S ANNUAL REVENUE FROM CHEMICALS AND FERTILIZERS IMPERIAL A TORONTO PETROLEUM AND CHEMICALS COMPANY SIXTY NINE POINT SIX PERCENT OWNED BY EXXON CORPORATION SAID IT PLANS TO SELL A PROFITABLE ALBERTA FERTILIZER PLANT AND CANADIAN PRAIRIES DISTRIBUTION TERMINALS TO SHERRITT A FORT SASKATCHEWAN ALBERTA RESOURCES AND ADVANCED MATERIALS MANUFACTURING COMPANY IMPERIAL SAID IT EXPECTS THE TRANSACTION TO CLOSE AT THE EARLIEST BY THE END OF FEBRUARY THE COMPANIES DIDN'T DISCLOSE THE PROPOSED TRANSACTION'S VALUE SHERRITT SAID IMPERIAL'S FERTILIZER OPERATIONS HAVE GENERATED ANNUAL REVENUE OF ABOUT TWO HUNDRED FIFTY MILLION CANADIAN DOLLARS ONE HUNDRED EIGHTY NINE MILLION U. S. DOLLARS OVER THE PAST FIVE YEARS IT SAID ITS OWN EXISTING FERTILIZER AND CHEMICALS OPERATIONS HAVE GENERATED AVERAGE ANNUAL REVENUE OF ABOUT ONE HUNDRED FIFTY MILLION CANADIAN DOLLARS ONE HUNDRED THIRTEEN POINT FOUR MILLION DOLLARS OVER THAT PERIOD RIGGS NATIONAL CORPORATION REPORTED A SMALL PROFIT FOR THE FOURTH QUARTER COMPARED WITH A LARGE YEAR EARLIER LOSS REFLECTING AGGRESSIVE MOVES BY THE COMPANY TO CLEAN UP ITS PORTFOLIO OF NONPERFORMING LOANS RIGGS SAID NET INCOME FOR THE QUARTER WAS THREE POINT ONE MILLION DOLLARS OR NINE CENTS A SHARE COMPARED WITH A LOSS OF TWENTY FOUR POINT ONE MILLION DOLLARS OR NINETY SEVEN CENTS A SHARE A YEAR EARLIER THE BANK HOLDING COMPANY BASED IN WASHINGTON D. C. SAID ITS NONPERFORMING ASSETS FELL SIXTY MILLION DOLLARS FOR THE QUARTER TO THE LOWEST LEVEL IN MORE THAN THREE YEARS THE BANK HAD TOTAL ASSETS OF FOUR POINT SEVEN EIGHT BILLION DOLLARS ON DECEMBER THIRTY FIRST THE LOAN LOSS PROVISION FELL TO TWO POINT ONE MILLION DOLLARS FROM TWENTY SEVEN POINT THREE MILLION DOLLARS NET INTEREST INCOME ROSE TO THIRTY FIVE POINT TWO MILLION DOLLARS FROM THIRTY TWO POINT ONE MILLION DOLLARS FOR NINETEEN NINETY THREE RIGGS HAD A LOSS OF NINETY FOUR POINT TWO MILLION OR THREE DOLLARS AND SIXTY FIVE CENTS A SHARE COMPARED WITH A NINETEEN NINETY TWO LOSS OF TWENTY ONE POINT ONE MILLION DOLLARS OR EIGHTY SEVEN CENTS A SHARE THE FULL YEAR LOAN LOSS PROVISION WAS SIXTY NINE POINT THREE MILLION DOLLARS UP FROM FIFTY TWO POINT ONE MILLION DOLLARS INTERNATIONAL FAMILY ENTERTAINMENT INCORPORATED TERMINATED ITS TENDER OFFER FOR THE SHARES OF NOSTALGIA NETWORK INCORPORATED THE TENDER OFFER WAS PRICED AT TWO DOLLARS A SHARE FOR COMMON STOCK AND AT TWO HUNDRED DOLLARS A SHARE FOR ALL PREFERRED SHARES OUTSTANDING BUT I. F. E.'S OFFER WHICH HAD BEEN EXTENDED TWICE BEFORE WAS REJECTED BECAUSE THE NOSTALGIA BOARD CONSIDERED IT TO BE TOO LOW AMONG OTHER REASONS I. F. E. COULD HAVE COME BACK WITH A HIGHER BID BUT THE COMPANY DECLINED TO COMMENT YESTERDAY I. F. E. WHICH OWNS THE FAMILY CABLE CHANNEL IS A VIRGINIA BEACH VIRGINIA MEDIA COMPANY FOUNDED BY RELIGIOUS BROADCASTER PAT ROBERTSON I. F. E. SAID IT WAS INFORMED BY THE DEPOSITARY THAT ABOUT FIVE POINT SIX MILLION OF THE APPROXIMATELY TWENTY MILLION COMMON SHARES OUTSTANDING HAD BEEN TENDERED AS OF YESTERDAY BUT NO PREFERRED SHARES B. A. S. F. CORPORATION CHARLOTTE N. C. SAID IT WILL END POLYESTER FILAMENT PRODUCTION AT ITS LOWLAND TENNESSEE PLANT BY JUNE FIRST RESULTING IN LAYOFFS FOR FOUR HUNDRED FIFTY WORKERS THE COMPANY HAS DISCUSSED TERMS OF SALE FOR THE LOWLAND PLANT BUT FAILED TO REACH AN AGREEMENT WITH WELLMAN INCORPORATED SHREWSBURY N. J. B. A. S. F. A UNIT OF B. A. S. F. A. G. HAD ANNOUNCED INTENTIONS ABOUT A YEAR AGO TO PULL OUT OF THE POLYESTER CHIP AND FILAMENT BUSINESS WHILE B. A. S. F. CONTINUES TO SEEK A BUYER FOR THE POLYESTER CHIP OPERATION ABOUT ONE HUNDRED WORKERS WILL REMAIN IN MANUFACTURING AND SUPPORT WORK ANOTHER SIX HUNDRED THIRTY WORKERS WILL BE EMPLOYED AT THE NYLON OPERATIONS A CORE BUSINESS FOR THE COMPANY KATHERINE LEBLANC USED TO STOCK THE SHELVES AT TRINITY VALLEY MEDICAL CENTER WITH HOSPITAL SUPPLIES THAT WOULD LAST BETWEEN FORTY FIVE AND SIXTY DAYS NOW MS. LEBLANC WHO IS DIRECTOR OF MATERIALS MANAGEMENT AT THE PALESTINE TEXAS HOSPITAL STRIVES TO KEEP ENOUGH SUPPLIES ON HAND FOR JUST THREE DAYS QUOTE SO WHEN THE TRUCK DRIVES UP TO OUR DOORS WE REALLY NEED THE STUFF QUOTE SHE SAYS MS. LEBLANC'S HOSPITAL OPERATED BY ORNDA HEALTHCORP IS NOT ALONE IN THE MIDST OF DEBATE OVER NATIONAL HEALTH CARE REFORM HEALTH CARE PROVIDERS GREW THRIFTY IN NINETEEN NINETY THREE HOSPITALS REDUCED THEIR COSTS FOR EXAMPLE BY CUTTING MONEY AND SPACE ALLOTTED FOR SCALPELS AND OTHER SUPPLIES THE SPACE WAS THEN UTILIZED FOR OTHER PURPOSES MAINTAINING LOW INVENTORY IS A TOOL TO CONTROL COSTS SAYS MICHAEL NEELY DIRECTOR OF MATERIALS MANAGEMENT AT EGLESTON CHILDREN'S HOSPITAL IN ATLANTA IF HOSPITALS MANAGE THEIR INVENTORY EFFICIENTLY OVERALL COSTS COME DOWN AND THAT WILL ULTIMATELY BENEFIT THE PATIENT ALTHOUGH PATIENTS MAY NOT SUFFER THE MAKERS OF BILLIONS OF DOLLARS IN GOODS THAT USED TO STOCK THOSE SHELVES ALREADY FEEL THE EFFECTS IT'S CREATED A SLOWDOWN IN BUSINESS WHICH ACCELERATED DURING THE FIRST QUARTER OF NINETEEN NINETY THREE AND CONTINUED FORWARD SAYS A U. S. SURGICAL CORPORATION SPOKESMAN SALES OF U. S. SURGICAL WHICH MAKES SURGICAL STAPLES AND OTHER PRODUCTS SLIPPED NINETEEN PERCENT IN THE NINETEEN NINETY THREE THIRD QUARTER TO TWO HUNDRED THIRTY EIGHT MILLION DOLLARS FROM TWO HUNDRED NINETY THREE MILLION DOLLARS A YEAR AGO AT ACUSON CORPORATION A MAKER OF ULTRASOUND IMAGING SYSTEMS THIRD QUARTER SALES FELL TWENTY SIX PERCENT TO SIXTY SEVEN MILLION DOLLARS SALES WERE DOWN ALSO AT BECTON DICKINSON AND COMPANY AND WERE MOSTLY FLAT AT LARGER MEDICAL SUPPLIERS SUCH AS BAXTER INTERNATIONAL INCORPORATED AND SAINT JUDE MEDICAL INCORPORATED ANALYST SAM NAVARRO OF FURMAN SELZ INCORPORATED WHO CALLS NINETEEN NINETY THREE A TOUGH YEAR FOR THE INDUSTRY EXPECTS MOST COMPANIES TO SHOW FINANCIAL PERFORMANCES BELOW PROJECTED NUMBERS MR. NAVARRO BLAMES THE POOR PERFORMANCES ON PENDING HEALTH CARE REFORMS WHICH CAUSED MANY HOSPITALS TO FREEZE THEIR BUDGETS AT SAINT LUKE MEDICAL CENTER IN PASADENA CALIFORNIA ONE OF TWELVE HOSPITALS OPERATED BY SUMMIT HEALTH LIMITED WORKERS NOW MAKE EVERY ATTEMPT TO USE EXISTING SUPPLIES BEFORE ANY NEW PURCHASING IS ALLOWED ACCORDING TO JEFFREY GALL SAINT LUKE'S DIRECTOR OF MATERIALS MANAGEMENT WE USED TO STOCK ALL DIFFERENT SIZES OF GRAFTS BUT NOW WE DON'T MR. GALL SAYS QUOTE WE USED TO DO A LOT OF HIP CASES AND NEUROSURGERY AND HAD CUSTOM PACKS OF INSTRUMENTS FOR THEM BUT NOW WE TEND TO KEEP ONLY ONE SET AND THEN ORDER MORE QUOTE MR. GALL SAYS SUMMIT SIGNED A JOINT CONTRACT AT THE BEGINNING OF NINETEEN NINETY THREE REDUCING PURCHASING COSTS BY NINE PERCENT TO TWELVE PERCENT ANNUALLY THAT CONTRACT IS EVIDENCE OF ANOTHER PHENEMENON CHANGING MEDICAL SUPPLY SALES HOSPITALS ARE COMBINING FORCES TO CUT COSTS FOR THE PERIOD ENDED SEPTEMBER THIRTIETH NINETEEN NINETY THREE THE JUSTICE DEPARTMENT REPORTED FIFTY SIX FILINGS OF HOSPITAL MERGERS MORE THAN DOUBLE THE TWENTY ONE FOR FISCAL NINETEEN NINETY TWO IN EARLY DECEMBER ORNDA ANNOUNCED THAT IT'S ACQUIRING SUMMIT CITING THE SINGLE BIGGEST ADVANTAGE OF THE CONSOLIDATION SAVING MONEY THE PREVIOUS MONTH ORNDA ANNOUNCED PLANS TO MERGE WITH AMERICAN HEALTHCARE MANAGEMENT INCORPORATED BEFORE SUMMIT'S ONE YEAR OLD CONTRACT WAS SIGNED MR. GALL SAYS HE WAS PAYING BIG TIME DOLLARS TO KEEP UP HIS INVENTORY FOR EXAMPLE HE SAYS THAT BEFORE THE PURCHASING AGREEMENT SUTURES COST BETWEEN ONE HUNDRED DOLLARS AND FIVE HUNDRED DOLLARS DEPENDING ON THE SIZE OF THE BOX UNDER THE CONTRACT PRICES DROPPED TO BETWEEN FIFTY DOLLARS AND THREE HUNDRED DOLLARS OVER THE NEXT SEVERAL YEARS MORE MERGERS WILL HAPPEN SO HOSPITALS CAN GRAB ON TO THESE KINDS OF CONTRACTS MR. GALL SAYS I'M IN AWE WATCHING MY SPENDING BEING REDUCED THE LOS ANGELES JURY IN THE CLOSELY WATCHED MURDER TRIAL OF ERIK MENENDEZ WAS DISMISSED LATE YESTERDAY AFTER FAILING TO REACH A VERDICT PROSECUTORS HAVE SAID THEY WOULD SEEK A RETRIAL MR. MENENDEZ TWENTY THREE YEARS OLD WAS ACCUSED WITH HIS OLDER BROTHER OF MURDERING THEIR WEALTHY PARENTS FOUR YEARS AGO A SEPARATE JURY CONSIDERING THE CHARGES AGAINST LYLE MENENDEZ TWENTY SIX CONTINUED TO DELIBERATE THE BROTHERS TESTIFIED THAT THEY HAD FEARED FOR THEIR LIVES AFTER YEARS OF SEXUAL ABUSE BY THEIR FATHER THE INABILITY OF ERIK'S JURY TO REACH A UNANIMOUS DECISION AFTER FIVE MONTHS OF TRIAL AND TWENTY DAYS OF DELIBERATIONS SHOWS HOW COMPLEX QUESTIONS OF GUILT AND JUSTIFICATION CAN POLARIZE JURORS EVEN IN CASES WHERE CONFESSED KILLERS SHOT AT POINT BLANK RANGE A GUILTY VERDICT ON THE TOUGHEST CHARGE OF FIRST DEGREE MURDER COULD HAVE BROUGHT THE DEATH PENALTY TWO JURIES WERE USED IN THE CASE BECAUSE SOME EVIDENCE WAS PRESENTED AGAINST ONLY ONE BROTHER THOUGH BOTH WERE CHARGED WITH THE SAME CRIMES ARISING FROM THE SAME BASIC FACTS AFTER DECLARING A MISTRIAL JUDGE STANLEY WEISBERG TOLD MEMBERS OF ERIK'S JURY THEY COULD SPEAK TO LAWYERS BUT INSTRUCTED THEM NOT TO SPEAK TO THE PRESS UNTIL THE SECOND JURY RETURNS SOME OBSERVERS SUGGESTED THAT THE DEADLOCK MEANT SOME JURORS IN ERIK'S CASE GAVE CREDENCE TO CLAIMS BY HIS LAWYER LESLIE ABRAMSON THAT THE OLDER BROTHER HAD BEEN THE INSTIGATOR AND ERIK FOLLOWED OUT OF PANIC AND CONFUSION BUT LACKED THE INTENT TO KILL REQUIRED FOR A MURDER CONVICTION THE CASE STEMMED FROM THE AUGUST TWENTIETH NINETEEN EIGHTY NINE SHOTGUN SLAYINGS OF JOSE MENENDEZ AND HIS WIFE KITTY IN THEIR BEVERLY HILLS CALIFORNIA HOME THE KILLINGS ATTRACTED IMMEDIATE ATTENTION NOT ONLY FOR THEIR BRUTALITY BUT ALSO BECAUSE THE SENIOR MR. MENENDEZ CHAIRMAN OF THE LOS ANGELES VIDEOCASSETTE RETAILER LIVE ENTERTAINMENT INCORPORATED WAS WELL KNOWN IN HOLLYWOOD SOCIAL AND BUSINESS CIRCLES AFTER INITIAL SPECULATION THAT THE COUPLE HAD BEEN TARGETS OF ORGANIZED CRIME THEIR CHILDREN WHO STOOD TO INHERIT A FOURTEEN MILLION DOLLAR ESTATE WERE ARRESTED A FEW MONTHS LATER WHEN THEY CONCEDED A FEW MONTHS BEFORE TRIAL THAT THEY HAD FIRED THE SHOTS IT SEEMED AN OPEN AND SHUT MATTER BUT OVER THE COURSE OF THE FIVE MONTH TRIAL A CASE THAT HAD BEEN BILLED BY PROSECUTORS AS CLASSIC COLD BLOODED MURDER WAS SHAPED BY DEFENSE LAWYERS INTO A WRENCHING CHRONICLE OF SUFFERING AND DESPERATION THEIR LAWYERS ARGUED THAT LYLE'S AND ERIK'S LIFELONG EXPERIENCE OF SEXUAL AND EMOTIONAL ABUSE HAD TRAUMATIZED THEM INTO BELIEVING THAT THEIR FATHER WITH THEIR MOTHER'S TACIT ASSENT WAS PREPARED TO KILL THEM BOTH BROTHERS TOOK THE STAND TEARFULLY CLAIMING THAT THEY LASHED OUT AFTER THEIR FATHER THREATENED THEM NOT TO REVEAL THE FAMILY'S HORRIFYING SECRET THE PROSECUTION ARGUED THAT THE ALLEGATIONS OF ABUSE WERE FABRICATED AND THAT THE BROTHERS WERE SPOILED RICH KIDS WHO HAD ACTED MERELY OUT OF HATRED AND GREED ALTHOUGH THE LOS ANGELES SUPERIOR COURT TRIAL ISN'T LIKELY TO BREAK LEGAL GROUND IT SERVED AS AN IMPORTANT TESTING ARENA FOR NEWER THEORIES JUSTIFYING THE USE OF VIOLENCE UNDER TRADITIONAL SELF DEFENSE DOCTRINE PEOPLE MAY KILL ONLY WHEN THEY HAVE A QUOTE REASONABLE QUOTE FEAR THAT THEIR LIVES ARE IN IMMINENT DANGER IN SUCH CASES THEY ARE GUILTY OF NO CRIME BUT COURTS IN CALIFORNIA AND A GROWING MINORITY OF STATES HAVE RULED THAT PEOPLE MAY BE PARTIALLY JUSTIFIED IN KILLING WHEN THEY HAVE A FEAR OF BEING KILLED THAT IS UNREASONABLE SUCH IMPERFECT SELF DEFENSE CASES DON'T RESULT IN ACQUITTALS BUT THE CRIME IS MANSLAUGHTER NOT MURDER LAST MONTH JUDGE WEISBERG RULED THAT THE MENENDEZ BROTHERS COULDN'T POSSIBLY HAVE HAD A REASONABLE FEAR THEY WOULD BE IMMINENTLY KILLED AND THAT MANSLAUGHTER WOULD BE THEIR BEST HOPE BY THEIR OWN TESTIMONY THEY HAD OTHER MEANS TO DEAL WITH THE THREAT THE JUDGE SAID CITING THE BROTHERS' ADMISSION THAT THEY WERE ABLE TO LEAVE THEIR HOME ON THE FATEFUL NIGHT TO GO TO THEIR CAR AND LOAD THEIR GUNS BEFORE TRIAL THE MENENDEZ CASE HAD ALSO RAISED QUESTIONS ABOUT THE LEGAL PRIVILEGE ACCORDED TO CONVERSATIONS BETWEEN PSYCHOTHERAPISTS AND PATIENTS IN A NINETEEN NINETY TWO RULING THE CALIFORNIA SUPREME COURT BROADLY INTERPRETED PRECEDENT TO PROTECT TAPES OF THERAPY SESSIONS THAT HAD BEEN OVERHEARD BY A THIRD PARTY IN THIS CASE THE MISTRESS OF THE BROTHERS' THERAPIST HOWEVER SOME TAPES WERE RULED ADMISSIBLE UNDER A DANGEROUS PATIENT EXCEPTION TO CONFIDENTIALITY RULES ON THEM THE BROTHERS CONFESSED TO THE KILLINGS AND ALLEGEDLY THREATENED THE THERAPIST'S MISTRESS AND WIFE BUT DIDN'T MENTION SEXUAL ABUSE LAST YEAR JUDGE WEISBERG ADMITTED ANOTHER TAPE ON THE THEORY THAT THE DEFENDANTS HAD WAIVED THE PRIVILEGE BY MAKING THEIR OWN EMOTIONAL STATE AN ISSUE AT TRIAL PERHAPS MORE THAN ANY OTHER COURT CASE IN RECENT MEMORY THE MENENDEZ TRIAL TAPPED INTO A DEEP VEIN OF NATIONAL ANXIETY ABOUT SUCH CURRENT ISSUES AS THE PERVASIVENESS OF CHILD ABUSE THE DEGREE TO WHICH CLAIMS OF VICTIMHOOD CAN DIMINISH PERSONAL RESPONSIBILITY AND EVEN THE LEGACY OF THE MONEY CULTURE OF THE NINETEEN EIGHTIES INDEED AS THE CASE PROGRESSED MENENDEZ TRIAL WATCHING BECAME SOMETHING OF A NATIONAL OBSESSION COURT T. V. WHICH CARRIED THE ONLY GAVEL TO GAVEL COVERAGE REPORTED THAT IT RECEIVED THE FOURTH HIGHEST NIELSEN RATING AMONG CABLE NETWORKS DURING THE DAY WHEN THE TRIAL WAS GENERALLY AIRED CELEBRITIES SUCH AS HOLLY HUNTER AND STEVEN SPIELBERG TALKED PUBLICLY ABOUT FOLLOWING THE CASE ASKO DEUTSCHE KAUFHAUS A. G. A GERMAN RETAILER SAID IT SOLD TEN PERCENT OF ITS HOME IMPROVEMENT CHAIN PRAKTIKER BAUUND HEIMWERKERMAERKTE A. G. TO THE HIRSCH GROUP A PRIVATE COMPANY AN ASKO SPOKESMAN DECLINED TO COMMENT ON THE PURCHASE PRICE ASKO STILL OWNS SEVENTY FIVE PERCENT OF PRAKTIKER AND SAID IT INTENDS TO SEEK A STOCK EXCHANGE LISTING FOR IT IN THE SUMMER OF NINETEEN NINETY FIVE THE REMAINING FIFTEEN PERCENT OF PRAKTIKER WAS ACQUIRED LAST YEAR BY A BANKING CONSORTIUM LED BY DEUTSCHE BANK A. G. AND BERLINER BANK THE COMPANY HAD SAID AT ITS SHAREHOLDERS MEETING LAST YEAR THAT IT PLANNED TO SELL PART OF PRAKTIKER IN A STATEMENT YESTERDAY KLAUS WIEGANDT CHAIRMAN OF ASKO'S MANAGEMENT BOARD SAID THIS REPRESENTS QUOTE A FURTHER IMPORTANT STEP IN THE IMPLEMENTATION OF OUR MEDIUM TERM STRATEGY TO CONCENTRATE ON CORE BUSINESS QUOTE AND MAKE OPERATIONS MORE INDEPENDENT THE DUESSELDORF BASED HIRSCH GROUP IS INVOLVED IN REAL ESTATE AND INVESTMENTS IT ISN'T PART OF THE HIRSCH A. G. TEXTILE FIRM ALSO BASED IN DUESSELDORF EUROPE'S WEAK ECONOMY AND LOW OIL PRICES WILL CONTINUE TO DEPRESS PROFIT AT BELGIAN OIL AND GAS GROUP PETROFINA S. A. IN NINETEEN NINETY FOUR ANALYSTS SAID HOWEVER THERE COULD BE A MARKED INCREASE IN NINETEEN NINETY FIVE ONCE INVESTMENTS IN UPGRADING ITS ANTWERP REFINERY START TO YIELD WIDER PROFIT MARGINS THEY ADDED A PETROFINA SPOKESWOMAN DECLINED TO COMMENT ON PROFIT EXPECTATIONS FOR NINETEEN NINETY THREE AND NINETEEN NINETY FOUR AHEAD OF THE ANNOUNCEMENT OF RESULTS IN EARLY FEBRUARY OTHER THAN TO SAY THAT QUOTE OF COURSE NINETEEN NINETY THREE WAS DIFFICULT QUOTE SHE SAID HOWEVER THAT ONCE THE ANTWERP INVESTMENT IS COMPLETED AND COSTEFFICIENCY MEASURES IMPLEMENTED PETROFINA BELIEVES IT WILL IN NINETEEN NINETY FIVE BE BETTER PREPARED TO BENEFIT FROM ALL OPPORTUNITIES ANALYSTS MOSTLY FORECAST THAT NINETEEN NINETY THREE PROFIT WILL DECLINE BY AROUND TWENTY PERCENT FROM THREE HUNDRED FIFTY TWO BELGIAN FRANCS NINE DOLLARS AND SEVENTY SIX CENTS A SHARE IN NINETEEN NINETY TWO HOWEVER ONE POINTED OUT THAT NET PROFIT WOULD BE BOLSTERED BY ONE TIME GAINS FROM THE SALES OF NORTH SEA OIL FIELDS AND A STAKE IN ENERGY HOLDING COMPANY TRACTEBEL S. A. WHILE FORECASTING A SLIGHT UPTURN IN NINETEEN NINETY FOUR PROFIT MOST ANALYSTS SAID THEIR FORECASTS WERE LIKELY A BIT OPTIMISTIC PETROFINA POSTED A PROFIT OF FOUR POINT SIX BILLION FRANCS ONE HUNDRED TWENTY SEVEN POINT SIX MILLION DOLLARS IN NINETEEN NINETY TWO DOWN SEVENTY TWO PERCENT FROM A YEAR EARLIER RECURRING PROFIT FELL FIFTY PERCENT TO SEVEN POINT NINE BILLION FRANCS COUNTRY STAR RESTAURANTS INCORPORATED SAID IT PURCHASED A VACANT PARCEL OF LAND IN LAS VEGAS FOR ABOUT ONE POINT SIX MILLION DOLLARS ON WHICH IT PLANS TO BUILD A RESTAURANT THE SANTA MONICA CALIFORNIA COMPANY SAID IT PAID HALF OF THE PURCHASE PRICE IN CASH AND RECEIVED A ONE YEAR EIGHT PERCENT MORTGAGE FOR THE BALANCE OF THE PURCHASE PRICE THE COMPANY ALSO SAID IT MADE A FIFTY THOUSAND DOLLAR NONREFUNDABLE PAYMENT TO SECURE AN EXTENSION TO OBTAIN THE NECESSARY APPROVALS TO ACQUIRE A LEASE FOR A COUNTRY STAR RESTAURANT TO BE LOCATED ADJACENT TO THE MAIN ENTRANCE TO THE UNIVERSAL STUDIOS THEME PARK AND UNIVERSAL CITYWALK DEVELOPMENT IN UNIVERSAL CITY CALIFORNIA COUNTRY STAR RESTAURANTS SAID IT CLOSED ITS INITIAL PUBLIC OFFERING ON DECEMBER TWENTY SECOND NINETEEN NINETY THREE IN WHICH IT SOLD INCLUDING OVERALLOTMENTS ONE POINT SIX MILLION SHARES AT FIVE DOLLARS A SHARE AND ABOUT TWO POINT FOUR MILLION REDEEMABLE WARRANTS YELTSIN ASSURED CLINTON HE'LL PRESS AHEAD WITH REFORMS DESPITE OPPOSITION THE RUSSIAN PRESIDENT EMPHASIZED THAT QUOTE THERE IS NO TURNING BACK FROM FIGHTING INFLATION AND CONTINUING TO PRIVATIZE QUOTE TREASURY SECRETARY BENTSEN SAID AFTER A MOSCOW MEETING IN FACT THE YELTSIN GOVERNMENT WANTS TO ACCELERATE SOME OF ITS MARKET REFORMS BENTSEN SAID CLINTON AND YELTSIN ALSO AGREED THAT THE U. S. AND RUSSIA WILL STOP AIMING THEIR NUCLEAR WEAPONS AT EACH OTHER WITH THE MISSILES RETARGETED TOWARD OCEANS YELTSIN PREDICTED THE THREE DAY SUMMIT WOULD PRODUCE PROFOUND RESULTS AS UKRAINE'S KRAVCHUK PREPARED TO FLY TO MOSCOW TO SIGN AN ACCORD TODAY FOR DISMANTLING THE UKRAINIAN NUCLEAR ARSENAL CRITICISM OF THE PLAN WAS MOUNTING IN THAT NATION'S PARLIAMENT RENO AND HER AIDES BEGAN CONTACTING PROSPECTIVE CANDIDATES TO INVESTIGATE CLINTON'S INVESTMENT IN A FAILED ARKANSAS REALESTATE COMPANY THE U. S. ATTORNEY GENERAL ASKED BY THE PRESIDENT WEDNESDAY TO NAME A SPECIAL COUNSEL OFFERED NO CLUES AS TO WHEN SHE MIGHT ANNOUNCE HER CHOICE SARAJEVO'S MAIN HOSPITAL TOOK A DIRECT HIT IN THE LATEST ROUND OF SHELLING IN BOSNIA'S CAPITAL AND ONE PERSON DIED MEANWHILE BOSNIAN OFFICIALS THREATENED TO URGE CONSUMERS IN FRIENDLY COUNTRIES TO BOYCOTT GOODS FROM NATO STATES THAT OBSTRUCT BOSNIA'S DEFENSE WHETHER IN THE CONTEXT OF AIR STRIKES OR THE ARMS EMBARGO ITALY'S PREMIER RESIGNED OPENING THE WAY FOR GENERAL ELECTIONS THAT ARE EXPECTED TO OUST THE SCANDAL SCARRED PARTIES THAT HAVE DOMINATED THE COUNTRY FOR FIVE DECADES CIAMPI SEVENTY THREE WAS APPOINTED IN APRIL TO OVERSEE REFORM TWO MEN WERE ARRESTED AND CHARGED WITH CONSPIRACY IN LAST WEEK'S ATTACK ON FIGURE SKATER NANCY KERRIGAN THE BODYGUARD FOR A RIVAL SKATER TONYA HARDING AND ANOTHER MAN WERE ARRESTED IN CONNECTION WITH THE CROWBAR ATTACK IN DETROIT A JUDGE IN LOS ANGELES DECLARED A MISTRIAL IN THE MURDER CASE AGAINST ERIK MENENDEZ ONE OF TWO BROTHERS WHO ADMITTED KILLING THEIR PARENTS AFTER JURORS COULDN'T REACH A VERDICT A SEPARATE JURY WAS DELIBERATING CHARGES AGAINST THE OTHER BROTHER LYLE BOTH CLAIM THE SLAYINGS WERE IN SELF DEFENSE AFTER YEARS OF ABUSE MENTAL ILLNESS IS CONCENTRATED AMONG FOURTEEN PERCENT OF THE U. S. POPULATION WHO HAVE THREE OR MORE EXPERIENCES WITH ALCOHOLISM DEPRESSION OR OTHER PSYCHIATRIC DISORDERS IN THEIR LIFE A SURVEY FOUND NEARLY HALF OF ALL AMERICANS HAVE A PSYCHIATRIC DISORDER AT LEAST ONCE BUT THAT INCLUDES MILD DEPRESSION AND ANXIETY T. B. RESEARCHERS SAID THEY HAVE DISCOVERED THE GENE MUTATION THAT ENABLES THE TUBERCULOSIS BACTERIA TO DEVELOP RESISTANCE TO A WIDELY USED ANTI T. B. DRUG THE FINDING IS EXPECTED TO HELP IN THE SEARCH FOR DRUGS TO TREAT DRUG RESISTANT TUBERCULOSIS WHICH REPRESENTS ONE QUARTER OF T. B. CASES IN SOME CITIES MEXICO'S OFFICIAL PEACE ENVOY ACCEPTED AN INDIAN GUERRILLA MOVEMENT AS A POLITICAL AND MILITARY FORCE TAKING A SECOND STEP TOWARD MEETING REBEL DEMANDS FOR TALKS HE ALSO SAID HE HAD RECEIVED MESSAGES THAT APPEAR TO SIGNAL THE BEGINNING OF A NEGOTIATING PROCESS BUT IT WASN'T CLEAR IF HE HAD HEARD DIRECTLY FROM REBEL LEADERS NASA ANNOUNCED THAT THE HUBBLE SPACE TELESCOPE HAS BEEN REPAIRED AND SAID THE ORBITING OBSERVATORY CAN NOW TAKE THE SHARPEST PHOTOS IN HISTORY OF DISTANT STARS THE ONE POINT SIX BILLION DOLLARS TELESCOPE WAS LAUNCHED IN NINETEEN NINETY WITH A FLAWED MIRROR A SHUTTLE CREW INSTALLED CORRECTIVE OPTICS AND A NEW CAMERA ASPIN ORDERED THE ARMY AND MARINE CORPS TO OPEN COMBAT SUPPORT UNITS TO WOMEN TROOPS WHILE CONTINUING TO BAR THEM FROM FRONT LINE INFANTRY SERVICE THE OUTGOING DEFENSE SECRETARY SAID THE CURRENT RISK RULE KEEPING WOMEN OUT OF DANGEROUS JOBS WOULD BE LIFTED OCTOBER FIRST AND THAT THE TERM DIRECT COMBAT WOULD BE REDEFINED ISRAELI OFFICIALS SAID THEY HOPE THAT CLINTON WILL OBTAIN A PLEDGE FROM SYRIA'S ASSAD AT A GENEVA SUMMIT SUNDAY TO SET UP EMBASSIES AND OPEN THE ISRAELI SYRIAN BORDERS TO TOURISM AND TRADE ISRAEL HAS BEEN WAITING FOR SYRIA TO DEFINE ITS PEACE TERMS BEFORE ISRAEL SAYS HOW MUCH OF THE GOLAN HEIGHTS IT IS WILLING TO RETURN CRESTAR FINANCIAL CORPORATION A RICHMOND VIRGINIA BANK HOLDING COMPANY SAID FOURTH QUARTER NET INCOME ROSE THIRTY NINE PERCENT BECAUSE OF HIGHER INTEREST INCOME AND LOWER PROVISIONS FOR LOAN LOSSES A FOCUS ON CONSUMER AND MIDDLE MARKET LENDING ALSO HELPED TO BOOST EARNINGS A SPOKESMAN SAID NET INCOME TOTALED THIRTY EIGHT POINT SEVEN MILLION DOLLARS OR ONE DOLLAR AND ONE CENT A SHARE COMPARED WITH TWENTY SEVEN POINT NINE MILLION DOLLARS OR SEVENTY EIGHT CENTS A SHARE A YEAR AGO NET INTEREST INCOME TOTALED ONE HUNDRED THIRTY EIGHT MILLION DOLLARS UP SIX PERCENT FROM ONE HUNDRED TWENTY NINE POINT SIX MILLION DOLLARS A YEAR AGO THE PROVISION FOR LOAN LOSSES WAS THIRTEEN POINT FIVE MILLION DOLLARS DOWN FROM EIGHTEEN POINT SEVEN MILLION DOLLARS IN THE NINETEEN NINETY TWO FOURTH QUARTER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CRESTAR WAS UNCHANGED AT FORTY ONE POINT EIGHT SEVEN FIVE DOLLARS MOODY'S INVESTOR SERVICE INCORPORATED SAID IT DOWNGRADED THE NATION'S LONG TERM DEBT RATING BECAUSE OF DETERIORATION OF TURKEY'S PUBLIC FINANCES THE DOWNGRADE TO B. A. ONE FROM B. A. A. THREE AFFECTS EIGHT POINT FIVE BILLION DOLLARS IN DEBT SECURITIES MOODY'S SAID THAT IT EXPECTS TURKEY'S HIGH FISCAL DEFICITS TO PERSIST DESPITE THE GOVERNMENT'S EFFORTS TO INCREASE REVENUE QUOTE SPENDING PRESSURES ARE LIKELY TO REMAIN STRONG AND THE GOVERNMENT MAY HAVE TO MOVE CAUTIOUSLY SO AS NOT TO CAUSE EXCESSIVE SOCIAL DISRUPTION QUOTE THE RATING AGENCY SAID TURKEY'S STRONG DOMESTIC DEMAND AND THE DECLINE IN THE COUNTRY'S TRADE BARRIERS THROUGH NINETEEN NINETY FIVE ARE LIKELY TO KEEP THE CURRENT ACCOUNT DEFICIT HIGHER THAN IN RECENT YEARS THE COMPANY SAID BUT THE REMOVAL OF TRADE BARRIERS MOODY'S SAID WILL REQUIRE SIGNIFICANT ECONOMIC RESTRUCTURING IN ENSUING YEARS SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORPORATION NEW HAVEN CONNECTICUT SAID IT WOULD SPEND FOUR POINT FIVE BILLION DOLLARS DURING THE NEXT FIFTEEN YEARS TO ENHANCE THE STATE'S TELECOMMUNICATIONS SYSTEM THE COMPANY WHICH OWNS SOUTHERN NEW ENGLAND TELEPHONE SAID THE SPENDING PROGRAM WILL SEEK TO CREATE A STATE WIDE QUOTE INFORMATION SUPERHIGHWAY QUOTE REACHING ABOUT FIVE HUNDRED THOUSAND HOMES AND BUSINESSES WITHIN THREE YEARS BY TWO THOUSAND NINE SOUTHERN NEW ENGLAND TELEPHONE SAID ALL ITS CUSTOMERS WILL HAVE ACCESS TO THE NEW TELECOMMUNICATIONS SYSTEM IN JULY NINETEEN NINETY THREE THE COMPANY WAS ENCOURAGED BY STATE REGULATORS TO MORE AGGRESSIVELY PURSUE INVESTMENT IN CONNECTICUT'S TELECOMMUNICATIONS INFRASTRUCTURE AT THE TIME REGULATORS SAID SOUTHERN NEW ENGLAND'S PROPOSED MODERNIZATION PLANS DIDN'T GO FAR ENOUGH YESTERDAY REGULATORS WELCOMED THE COMPANY'S STEPPED UP TELECOMMUNICATIONS PROGRAM COLUMBIA GAS SYSTEM INCORPORATED IS EXPECTED TO FILE A PLAN OF REORGANIZATION SOMETIME THIS MONTH IN U. S. BANKRUPTCY COURT IN WILMINGTON DELAWARE ACCORDING TO PEOPLE FAMILIAR WITH THE PLAN THE NATURAL GAS COMPANY BASED IN WILMINGTON WHOSE MAIN UNIT IS COLUMBIA GAS TRANSMISSION CORPORATION HAS RECEIVED SEVERAL EXTENSIONS OF ITS EXCLUSIVE PERIOD TO FILE A PLAN OF REORGANIZATION THE LATEST EXTENSION IS TO EXPIRE MARCH TWENTY SECOND COLUMBIA SAID LAST YEAR THAT ITS PROJECTED TIMETABLE FOR EMERGING FROM CHAPTER ELEVEN BANKRUPTCY LAW PROCEEDINGS HAD BEEN SEVERELY DISRUPTED BY LEGAL AND OTHER ISSUES THE COMPANY WHICH FILED FOR CHAPTER ELEVEN BANKRUPTCY PROTECTION UNDER THE U. S. BANKRUPTCY CODE IN MID NINETEEN NINETY ONE HAD BEEN DEVASTATED WHEN SPOT GAS PRICES PLUNGED WHILE IT REMAINED OBLIGATED TO THOUSANDS OF RESTRICTIVE ABOVE MARKET PRICE GAS CONTRACTS THE DISPUTED CLAIMS OVER ITS CANCELLATION OF NATURAL GAS CONTRACTS COULD EXCEED TEN BILLION DOLLARS OPTICAL RADIATION CORPORATION'S SHARE PRICE ROSE NEARLY TEN PERCENT IN HEAVY TRADING AFTER AN INVESTMENT GROUP LED BY BENSON EYECARE CORPORATION SAID IT HAS ACQUIRED A SIX POINT TWO PERCENT STAKE IN THE AZUSA CALIFORNIA COMPANY BENSON A RYE N. Y. MARKETER OF READY TO WEAR GLASSES SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT IT APPROACHED OPTICAL ABOUT A QUOTE POSSIBLE FRIENDLY BUSINESS COMBINATION QUOTE IN JULY BUT AFTER SEVERAL DISCUSSIONS OPTICAL INDICATED THAT IT WASN'T IN A POSITION TO CONSIDER AN OFFER FOR THE COMPANY AT THIS TIME THE FILING SAID OPTICAL RADIATION PRODUCES PRECISION OPTICAL SURGICAL PRODUCTS AND IS AN EYEGLASS WHOLESALER IN NASDAQ STOCK MARKET TRADING OPTICAL'S STOCK ROSE ONE DOLLAR AND FIFTY CENTS OR NINE POINT SEVEN PERCENT TO CLOSE AT SEVENTEEN DOLLARS A SHARE IN HEAVY TRADING GARY PATTEN OPTICAL RADIATION'S CHIEF FINANCIAL OFFICER SAID WE DON'T WANT TO COMMENT UNTIL WE'VE READ THE S. E. C. FILING THE COMPANY ALSO SAID LATE YESTERDAY IN A STATEMENT THAT IT HASN'T HELD MERGER NEGOTIATIONS WITH BENSON PRIVATE EYE EDMUND J. PANKAU CLAIMS TO HAVE PULLED OFF EXPLOITS THAT WOULD MAKE SAM SPADE ENVIOUS IN HIS TWO DECADE CAREER THE FORTY EIGHT YEAR OLD INVESTIGATOR ACCORDING TO PUBLISHED REPORTS HELPED NAB A NOTORIOUS GANG OF JEWEL THIEVES VIDEOTAPED DONNA RICE AND FORMER U. S. SENATOR GARY HART TOGETHER AND RUSHED INTO A BURNING BUILDING TO SNATCH A COMPUTER PRINTOUT OF THE FINANCIAL HOLDINGS OF DEPOSED PANAMANIAN LEADER MANUEL NORIEGA MR. PANKAU HAS GAINED A COLORFUL NOTORIETY PARTICULARLY IN TEXAS NEARLY ALL MAJOR NEWSPAPERS IN THE U. S. INCLUDING THIS ONE HAVE QUOTED HIM PHIL DONAHUE LARRY KING AND JOAN RIVERS HAVE ALL INTERVIEWED HIM THE HEADLINE OF A NINETEEN NINETY TWO NEW YORK TIMES PAGE ONE ARTICLE BILLED HIM AS QUOTE A NEW BREED OF SAM SPADE QUOTE THAT STORY WAS FOLLOWED BY A BOOK DEAL WITH MACMILLAN INCORPORATED FOR HIS AUTOBIOGRAPHY BUT WHETHER MR. PANKAU'S LARGER THAN LIFE IMAGE IS JUSTIFIED IS AN OPEN QUESTION WRITER ROBERT PACK WHO SIGNED TO WORK ON THE AUTOBIOGRAPHY SPENT SIX MONTHS RESEARCHING HIS SUBJECT'S CLAIMS AND HE BEGAN TO WORRY THAT THE DETECTIVE WHO BUILT HIS CAREER ON SNIFFING OUT UNTRUTHS MIGHT BE TELLING A FEW HIMSELF I DO NOT BELIEVE IT IS POSSIBLE TO PRODUCE A TRUE LIBEL FREE ORIGINAL BOOK ABOUT YOUR LIFE AND CAREER MR. PACK WROTE MR. PANKAU LAST APRIL IN AN ACCOMPANYING FIFTEEN PAGE STATEMENT WHICH BECAME PUBLIC LAST WEEK AS PART OF A LAWSUIT MR. PACK ARGUES THAT THE SLEUTH COULDN'T DOCUMENT CLAIMS HE MADE BEFORE SIGNING THE BOOK DEAL MR. PACK SAYS MR. PANKAU PROMISED BUT NEVER DELIVERED NEW INFORMATION ON THE IRAN CONTRA SCANDAL AND DETAILS OF BIG FIGURES IN WHITE COLLAR CRIME ACCORDING TO MR. PACK'S STATEMENT MR. PANKAU'S PROMISES MAY CONSTITUTE FRAUD AGAINST HIM AND MACMILLAN THE PUBLISHER DECLINES TO COMMENT THE STATEMENT BECAME PUBLIC WHEN MR. PANKAU FILED A DEFAMATION SUIT AGAINST MR. PACK IN STATE DISTRICT COURT IN HOUSTON LAST MONTH THE SUIT SEEKING MORE THAN FIVE MILLION DOLLARS IN DAMAGES CHARGES THAT MR. PACK IS SPREADING VICIOUS AND UNSUBSTANTIATED STATEMENTS ABOUT ED PANKAU'S VERACITY MORAL CHARACTER AND HONOR MR. PANKAU'S ATTORNEYS IN ATTACHING MR. PACK'S STATEMENT AS EVIDENCE FILED A MOTION TO SEAL IT FROM PUBLIC VIEW DISTRICT COURT JUDGE MICHAEL SCHNEIDER INITIALLY LEFT IT OPEN PENDING A HEARING ON THE MOTION AT MR. PACK'S REQUEST THE CASE WAS MOVED TO U. S. DISTRICT COURT IN HOUSTON WHERE A MOTION BY MR. PANKAU'S LAWYERS TO SEAL PARTS OF THE FILES IS PENDING MR. PACK WHO COLLABORATED WITH FORMER WHITE HOUSE SPOKESMAN LARRY SPEAKES ON A BESTSELLER ABOUT THE REAGAN ADMINISTRATION DECLINES TO COMMENT HE IS UNDER AN ORDER PROHIBITING HIM FROM COMMENTING ACCORDING TO THE LAWSUIT AS PART OF A CASE HE HAS PENDING AGAINST MR. PANKAU WITH THE AMERICAN ARBITRATION ASSOCIATION IN AN INTERVIEW MR. PANKAU WHO HEADS HIS OWN HOUSTON FIRM INTERTECT INCORPORATED DISPUTES MR. PACK'S VERSION HE SAYS SEVERAL OF THE APPARENT CONTRADICTIONS ABOUT HIM RESULTED FROM MISQUOTES BY OTHERS SOME FORMER CLIENTS DEFEND MR. PANKAU'S COMPETENCE MONTY E. PENDLETON A HOUSTON CONSULTANT SAYS MR. PANKAU TRACKED DOWN REAL ESTATE HOLDINGS OF ONE OF HIS DEBTORS HE'S GOT A BIG EGO AND LIKES TO BRAG MR. PENDLETON SAYS BUT HE ALSO DELIVERS MR. PANKAU WORKED FOR CLIENTS RANGING FROM BANKS TO THE FEDERAL GOVERNMENT SINCE NINETEEN EIGHTY NINE HE HAS DONE THIRTY TWO JOBS FOR THE RESOLUTION TRUST CORPORATION MOSTLY SEARCHES OF PUBLIC RECORDS AND COLLECTED ABOUT ONE HUNDRED FIFTY THOUSAND DOLLARS IN FEES SAYS AN AGENCY SPOKESMAN ADDING QUOTE HE WAS AN AVERAGE PERFORMER QUOTE IN MR. PANKAU'S NINETEEN NINETY TWO BOOK CHECK IT OUT A HOW TO ON FINDING OUT ABOUT THE PEOPLE IN YOUR LIFE HE ADVISES WOULD BE PRIVATE EYES NOT TO BE SHY ABOUT TELLING A FIB THE TRUE SECRET OF THE SUPERSLEUTHS IS OFTEN A GLIB TONGUED SMOOTH TALKING LITTLE PRETEXT A WHITE LIE ONE OF MR. PACK'S BIGGEST COMPLAINTS ACCORDING TO HIS STATEMENT IS THAT IN HIS INTERVIEWS WITH MR. PANKAU SOME OF THEM TAPED THE DETECTIVE CONTRADICTED HIMSELF REPEATEDLY BUSINESS WEEK SAID THAT MR. PANKAU WAS A GREEN BERET IN VIETNAM ONE ARTICLE IN A NINETEEN NINETY TWO ISSUE OF FLORIDA STATE MAGAZINE SAID HE WAS WOUNDED IN COMBAT BUT MR. PANKAU TOLD HIS BIOGRAPHER HE WAS NEVER IN VIETNAM ACCORDING TO MR. PACK'S STATEMENT WHEN PRESSED BY MR. PACK TO EXPLAIN HE ALLEGEDLY GAVE SEVERAL STORIES ONCE SAYING HE HAD FLOWN OVER VIETNAM AND LANDED BRIEFLY NEVER LEAVING THE PLANE AND ANOTHER CLAIMING HE HAD BEEN IN VIETNAM FOR A COUPLE OF DAYS BUT WASN'T ALLOWED TO TALK ABOUT IT ARMY FILES FROM THE GOVERNMENT'S NATIONAL PERSONNEL RECORDS CENTER IN SAINT LOUIS SHOW MR. PANKAU SPENT TWO WEEKS IN OKINAWA BUT OTHERWISE SERVED ENTIRELY IN THE U. S. HIS FILES DON'T INDICATE THAT HE WAS A GREEN BERET OR THAT HE WAS WOUNDED DATA NORMALLY INCLUDED IN MILITARY RECORDS SAYS A SPOKESWOMAN FOR THE CENTER MR. PANKAU SAYS IN AN INTERVIEW THAT HE WAS A GREEN BERET FOR SEVERAL WEEKS IN OKINAWA TEACHING NATIVE FORCES HOW TO PACK AND MAINTAIN PARACHUTES HE ALSO SAYS HE WAS INJURED ONCE BUT CAN'T TALK ABOUT IT ADDING THAT MR. PACK'S VERSION OF THEIR CONVERSATIONS IS INACCURATE MR. PANKAU HAS BUILT HIS IMAGE PARTLY ON HIS EXPERIENCE WITH THE INTERNAL REVENUE SERVICE CHECK IT OUT RECOUNTS HOW MR. PANKAU'S BOSS AT THE I. R. S. TRACKED NOTORIOUS JEWELRY THIEVES BY SCREENING SUBSCRIPTION LISTS OF JEWELRY MAGAZINES FOR PEOPLE WITH CRIMINAL RECORDS MURPH THE SURF AND HIS GANG NEVER DID FIGURE OUT THAT WE NAILED THEM BY FINDING THEIR ADDRESS ON A JEWELRY MAGAZINE SUBSCRIPTION LIST MR. PANKAU WRITES BUT WHEN MR. PACK TOLD MR. PANKAU THAT MURPH THE SURF WAS JAILED BEFORE MR. PANKAU BEGAN WORKING FOR THE I. R. S. THE PRIVATE EYE SAID HE HAD FORGOTTEN THAT AND CHANGED HIS STORY TO SAY THE UNIT HAD INVESTIGATED OTHER MEMBERS OF THE GANG ACCORDING TO MR. PACK'S STATEMENT MR. MCRAE SAYS MR. PANKAU WAS A TRAINEE NOT A FULL FLEDGED AGENT AND STAYED LESS THAN A YEAR MR. MCRAE SAYS HE REMEMBERS MR. PANKAU ONLY BECAUSE HE FAILED THE BACKGROUND CHECK QUOTE THAT'S VERY RARE QUOTE MR. MCRAE SAYS ADDING THAT HE DOESN'T REMEMBER WHY MR. PANKAU THEN IN HIS MID TWENTIES FAILED THE I. R. S.'S FLORIDA OFFICES SAY THEIR RECORDS DON'T GO BACK FAR ENOUGH TO HAVE THAT INFORMATION MR. PANKAU NOW SAYS HE WASN'T THERE WHEN THE I. R. S. INVESTIGATED MURPH THE SURF AS FOR THE BACKGROUND CHECK MR. PANKAU SAYS I DO NOT FEEL I FAILED THE BACKGROUND CHECK I NEVER PERSONALLY GOT THE RESULTS AND HE ADDS THAT HE RESIGNED HIS POSITION ONE OF MR. PANKAU'S MOST RENOWNED FEATS WAS THE TIME HE SUPPOSEDLY SNATCHED A LIST OF GENERAL NORIEGA'S HOLDINGS FROM A BURNING BUILDING NEW YORK TIMES REPORTER STEVE LOHR WROTE IN THE PAPER'S FEBRUARY TWENTIETH NINETEEN NINETY TWO EDITION MR. PANKAU WAS IN PANAMA ON AN INSURANCE INVESTIGATION DURING THE AMERICAN INVASION IN THE CONFUSION HE SLIPPED INTO A BUILDING AND MADE OFF WITH A COMPUTER PRINTOUT LISTING MORE THAN EIGHT HUNDRED MILLION DOLLARS IN ASSETS HELD IN EIGHTEEN COUNTRIES ASSETS HE IS CONVINCED ARE GENERAL NORIEGA'S A SIMILAR VERSION APPEARS IN QUOTE CHECK IT OUT QUOTE MR. PANKAU BEGINS I JUST HAPPENED TO BE IN PANAMA DURING THE NINETEEN EIGHTY NINE INVASION SITTING IN A BAR BUT MR. PANKAU NOW SAYS HE WASN'T IN PANAMA WHEN FIGHTING BROKE OUT IN AN INTERVIEW HE SAYS THAT THE TIMES STORY WAS A MISQUOTE AND THAT HIS EMPLOYEES NOT HE WERE IN PANAMA MR. LOHR THE TIMES REPORTER WAS TRAVELING AND COULDN'T BE REACHED THE U. S. ATTORNEY'S MIAMI OFFICE WHICH IN NINETEEN NINETY TWO SUCCESSFULLY PROSECUTED MR. NORIEGA ON DRUG TRAFFICKING CHARGES CONSIDERED USING THE DOCUMENT THAT MR. PANKAU CLAIMS LISTS GENERAL NORIEGA'S HOLDINGS BUT DIDN'T BECAUSE IT WAS NOT POSSIBLE TO VERIFY ITS AUTHENTICITY SAYS ASSISTANT U. S. ATTORNEY MICHAEL P. SULLIVAN MR. PANKAU SAYS HE HAS BEEN RETAINED BY THE PANAMANIAN GOVERNMENT TO TRACK DOWN MR. NORIEGA'S ASSETS A CONTENTION DISPUTED BY EUSEBIO MARCHOSKY WHO HEADS PANAMA'S EFFORT TO RECOVER THE ASSETS WORLD WIDE ONE OF MR. PANKAU'S MOST NOTED ESCAPADES IS THE STORY HE TOLD ABOUT VIDEOTAPING MS. RICE AND SENATOR HART TOGETHER WHICH HE RECOUNTED IN A NINETEEN NINETY TWO ARTICLE IN THE WASHINGTON POST THE VERSION HE GAVE MR. PACK WAS EVEN MORE DETAILED CLAIMING ACCORDING TO MR. PACK'S STATEMENT IT WAS HE WHO CAUGHT GARY HART WITH DONNA RICE AND THAT HE TIPPED OFF THE MIAMI HERALD WHICH RESULTED IN NINETEEN EIGHTY SEVEN NEWS STORIES THAT KNOCKED HART THE LEADING CONTENDER FOR THE NINETEEN EIGHTY EIGHT DEMOCRATIC PRESIDENTIAL NOMINATION OUT OF THE RACE JAMES SAVAGE ASSOCIATE EDITOR FOR INVESTIGATIVE REPORTING AT THE MIAMI HERALD SAYS MR. PANKAU NEVER INFORMED THE HERALD OR GAVE IT ANY PICTURES BEFORE ITS STORY ON SENATOR HART'S RELATIONSHIP WITH MS. RICE QUOTE I WAS THE EDITOR ON THE STORY I WOULD HAVE KNOWN MR. SAVAGE SAYS IN AN INTERVIEW MR. PANKAU SAYS HIS INVESTIGATORS GAVE INFORMATION TO THE MIAMI HERALD WHEN TOLD OF MR. SAVAGE'S DENIAL MR. PANKAU SAYS THE PHOTOS WENT TO A CLIENT WHOSE IDENTITY HE DOESN'T KNOW AND HE SUSPECTS THE CLIENT TIPPED OFF THE HERALD A NISSAN MOTOR COMPANY SALES AFFILIATE SAID IN TOKYO THAT IT INTENDS TO BEGIN MARKETING FORD MOTOR COMPANY VEHICLES THIS SPRING IN THE LATEST EFFORT BY JAPAN'S AUTO INDUSTRY TO GIVE AMERICA'S BIG THREE CAR MAKERS A FOOTHOLD IN THE JAPANESE MARKET WORD OF THE AGREEMENT COMES AS U. S. TRADE NEGOTIATORS ARE IN TOKYO TO SEEK A BIGGER SLICE OF THE JAPANESE MARKET FOR U. S. CARS AND AUTO PARTS DETROIT'S LACK OF ACCESS TO JAPANESE DEALERSHIPS HAS BEEN ONE OF THE BIG THREE'S MAIN COMPLAINTS ABOUT JAPAN'S AUTO INDUSTRY TOKYO NISSAN AUTO SALES COMPANY WILL SELL THE FORD VEHICLES AT DEALERSHIPS IN THE TOKYO AREA SAID SPOKESMAN ATSUSHI HORIGOME MR. HIROGOME SAID THE MODELS AND SALES VOLUME HAVEN'T BEEN DECIDED A FORD SPOKESMAN IN TOKYO SAID FORD IS STILL STUDYING THE PROPOSAL FORD ALREADY SHARES A DEALERSHIP NETWORK WITH ITS JAPANESE AFFILIATE MAZDA MOTOR COMPANY AND STRENGTHENING THOSE EXISTING DEALERSHIPS IS A PRIORITY HE SAID FORD AND NISSAN ALREADY JOINTLY PRODUCE MINIVANS THE DEAL FOLLOWS OTHER RECENT JAPAN U. S. SALES ARRANGEMENTS INCLUDING A PLEDGE BY TOYOTA MOTOR CORPORATION TO SELL TWENTY THOUSAND GENERAL MOTORS CORPORATION COMPACT CARS A YEAR IN JAPAN CLINTONITES RUSH TO DIVERT PUBLIC ATTENTION FROM THE WHITEWATER FLAP HAVING CAVED IN TO CALLS TO NAME A SPECIAL COUNSEL WHITE HOUSE OFFICIALS PLAN TO QUIT TALKING ABOUT THE ISSUE THEY WILL FOCUS ON CLINTON'S EUROPEAN TRIP AND ESPECIALLY HIS STATE OF THE UNION ADDRESS JANUARY TWENTY FIFTH AIDES PLAN TO GIVE CLINTON HIS THIRD DRAFT OF THE SPEECH WHEN HE RETURNS FROM MOSCOW HEALTH CARE AND CRIME WILL BE STRESSED REPUBLICANS WILL FOCUS ON CLINTON'S CREDIBILITY AS THE CENTRAL THREAD THROUGH HIS TROUBLES WITH TAX PROPOSALS WHITEWATER AND PERSONAL ALLEGATIONS QUOTE CREDIBILITY IS THE LINCHPIN OF ANY OFFICE OF AUTHORITY QUOTE SAYS G. O. P. CHAIRMAN HALEY BARBOUR THOUGH SIMILAR THEMES COULDN'T SAVE BUSH IN HIS RACE AGAINST CLINTON ONE CLINTON ADVISER SAYS THAT WITH A SPECIAL COUNSEL DOLE'S CALL FOR A SPECIAL CONGRESSIONAL COMMITTEE TO INVESTIGATE WHITEWATER IS DEAD ON ARRIVAL HEALTH CARE REFORM WILL GET A RENEWED PUSH FROM THE FIRST LADY HILLARY RODHAM CLINTON PLANS TO GO TO PENNSYLVANIA CALIFORNIA MAINE AND NORTH CAROLINA SOON AFTER RUSSIA DEMOCRATIC LAWMAKERS ARE FRIENDLY HOSTS BUT REPUBLICANS ALSO ARE TARGETED MAINE SENATOR COHEN IS IMPORTANT ON MEDICARE ISSUES REPRESENTATIVE GREENWOOD IN SUBURBAN PHILADELPHIA AND REPRESENTATIVE MCMILLAN IN CHARLOTTE ARE SWING G. O. P. VOTES ON THE HOUSE COMMERCE COMMITTEE WHITE HOUSE ADVISERS TRY TO FIND WAYS TO CONVINCE LAWMAKERS THAT THE PUBLIC AS SHOWN IN POLLS PREFERS CLINTON'S PLAN TO ALTERNATIVE BILLS BUT SENATE FINANCE CHAIRMAN MOYNIHAN'S LENGTHY HEARING SCHEDULE SUGGESTS NO ACTION ON HEALTH CARE LEGISLATION BEFORE LATE SPRING SOME REPUBLICANS INCLUDING WOULD BE PRESIDENTIAL CONTENDER CHENEY PRESS THE CONSERVATIVE THEME THAT THERE IS NO HEALTH CRISIS TRADE TALKS BETWEEN THE U. S. AND JAPAN HEAD FOR MORE TROUBLE BOTH SIDES GIVE UP HOPE OF REACHING A PRELIMINARY AGREEMENT AT A TWO DAY CONFERENCE IN WASHINGTON SLATED TO BEGIN JANUARY TWENTY FOURTH INSTEAD U. S. NEGOTIATORS PLAN AN EMERGENCY TRIP TO TOKYO BEFORE PRIME MINISTER HOSOKAWA VISITS CLINTON FEBRUARY ELEVENTH THE MAIN HANGUP U. S. INSISTENCE THAT JAPAN AGREE TO TARGETS TO INCREASE PURCHASES OF U. S. GOODS JAPANESE NEGOTIATORS SAY THEY WILL NEVER DO THAT U. S. TRADE OFFICIAL CHARLENE BARSHEFSKY SAYS THE U. S. IF PUSHED WILL SET TARGETS ITSELF U. S. NEGOTIATORS COMPLAIN THAT JAPANESE BUREAUCRATS ARE BLOCKING A DEAL HOPING THAT POLITICAL LEADERS WILL OVERRULE THEM AND MAKE CONCESSIONS CONCERN GROWS THAT THE DOLLAR WHICH HAS SURGED PAST THE ONE HUNDRED TEN YEN MARK IN GLOBAL TRADING WILL EXACERBATE THE U. S. JAPAN TRADE DEFICIT SPECULATION BEGINS ON THE SPECIAL COUNSEL TO PROBE WHITEWATER SOME SUGGEST A G. O. P. LAWYER WHO MIGHT BE SEEN AS TRULY INDEPENDENT SUCH AS FORMER NEW HAMPSHIRE SENATOR RUDMAN OR IRAN CONTRA PROSECUTOR DAN WEBB ALSO MENTIONED FORMER JUSTICE BYRON WHITE CHINA BRAWL THE U. S. CLAIMING THAT CHINA HAS LICENSED TWENTY SIX FACTORIES TO PRODUCE PIRATED COMPACT DISKS THREATENS TRADE SANCTIONS IF THE CHINESE DON'T IMPROVE PROTECTION OF COPYRIGHTS THE FACTORIES ARE SAID TO EXPORT FIFTY FOUR MILLION DISKS A YEAR NOW OVERHEAR THIS THE FED QUIETLY AGREED TO LET THE HOUSE BANKING COMMITTEE STAFF LISTEN YESTERDAY TO A TAPE OF AN OCTOBER FIFTEENTH CONFERENCE CALL IN WHICH FED OFFICIALS DISCUSSED STRATEGY FOR A HEARING BEFORE THE PANEL THE GOAL TO DEFUSE CHAIRMAN GONZALEZ'S CHARGES THAT HE WAS MISLED ABOUT THE EXISTENCE OF FED TRANSCRIPTS CIVIL RIGHTS LEADER BEN CHAVIS OF THE N. DOUBLE A. C. P. WILL ANNOUNCE A COALITION WITH BUSINESSES TO PUSH HIS PLAN FOR REDOING THE SUPERFUND TOXIC WASTE CLEANUP LAW THE PLAN WOULD REDUCE BUSINESS LIABILITY MORE THAN CLINTON'S EXPECTED PROPOSAL AND WOULD HELP FUND ECONOMIC DEVELOPMENT IN LOW INCOME AREAS NEAR WASTE SITES HOUSE DEPARTURES PROMISE TO MAKE THIS YEAR'S RACES UNUSUALLY VOLATILE HOUSE MEMBERS WHO WILL RETIRE OR RUN FOR A DIFFERENT OFFICE NOW NUMBER THIRTY MORE DEPARTURES ARE SURE TO COME BUT NO BIG SHIFT IS EXPECTED BY PARTY REPUBLICANS NOW ARE EXPECTED TO PICK UP FIFTEEN TO TWENTY SEATS WELL BELOW FORECASTS MADE LAST YEAR POTENTIAL G. O. P. CANDIDATES INCLUDE TWENTY ONE PHYSICIANS WHO COULD BOLSTER ATTACKS ON CLINTON'S HEALTH PLAN FOR THEIR PART DEMOCRATS SEE A POTENTIAL STAR IN OHIO BUSINESSWOMAN CYNTHIA RUCCIA WHO WILL FACE G. O. P. BUDGET CRUNCHER REPRESENTATIVE KASICH DEMOCRATS ALSO ARE HIGH ON GREENCASTLE INDIANA MAYOR MIKE HARMLESS WHO IS RUNNING AGAINST LONGTIME G. O. P. REPRESENTATIVE MYERS ONE BIG UNCERTAINTY WHETHER AN INCREASINGLY UNPOPULAR ROSS PEROT WILL FIELD OR BACK INDEPENDENT CANDIDATES IN HOUSE RACES KENNEDYS MAY RUN FOR HOUSE SEATS IN TWO MORE STATES SENATOR KENNEDY'S SON PATRICK IN RHODE ISLAND AND ROBERT KENNEDY'S DAUGHTER KATHLEEN TOWNSEND IN MARYLAND MINOR MEMOS IN MOSCOW A RUSSIAN SHOUTING EDDIE BAUER CHASES DOWN WHITE HOUSE STENOGRAPHER SUSAN LEANDER AND TRADES A NEW FUR HAT FOR HER SIX DOLLAR NECK WARMER MADE BY EDDIE BAUER A HOT BRAND NAME THERE INFORMATION HIGHWAY POTHOLE NEEDING TO DISCUSS LAST MINUTE CHANGES TO GORE'S TELECOMMUNICATIONS SPEECH AIDE GREG SIMON PICKED UP A SPECIAL WHITE HOUSE PHONE AT THE KENNEDY CENTER MONDAY NIGHT IT DIDN'T WORK AN A. F. L. C. I. O. TRAINING MANUAL COACHES INSTRUCTORS TO SAY IN YOUR OWN WORDS THAT A U. S. HEALTH CARE CRISIS IS SOMETHING ON WHICH WE ALL AGREE EXCEPT PERHAPS THE INSURANCE INDUSTRY FIVE PATIENTS AND THEIR SPOUSES FILED A LAWSUIT AGAINST SOFAMOR SLASH DANEK GROUP INCORPORATED AND CLOSELY HELD ACROMED CORPORATION ALLEGING THE COMPANIES' SURGICAL SCREWS WERE IMPLANTED ILLEGALLY IN PATIENTS' SPINES THE SUIT FILED IN U. S. DISTRICT COURT IN PHILADELPHIA CHARGES THE SCREWS WEREN'T APPROVED BY THE FOOD AND DRUG ADMINISTRATION FOR USE IN CERTAIN SPINAL SURGERIES DESPITE WARNINGS BY THE F. D. A. ACCORDING TO THE PLAINTIFFS SOFAMOR SLASH DANEK AND ACROMED CONTINUED TO PROMOTE THE DEVICES TO DOCTORS AND SURGEONS THE PRESIDENT AND CHIEF EXECUTIVE OF MEMPHIS TENNESSEE BASED SOFAMOR SLASH DANEK RON PICKARD SAID THE SUIT IS WITHOUT MERIT AND THE COMPANY WOULD MOVE QUICKLY TO HAVE IT DISMISSED ACROMED BASED IN CLEVELAND DECLINED TO COMMENT THE SUIT ALSO ALLEGES THAT SOME SCREWS WERE DEFECTIVE LEAVING PATIENTS CRIPPLED AND IN SEVERE PAIN ACCORDING TO THE COMPLAINT FILED LATE WEDNESDAY THE PEDICLE SCREWS NAMED FOR A PART OF THE SPINE WERE USED IMPROPERLY IN MORE THAN THREE HUNDRED THOUSAND PATIENTS THE CLAIM WHICH SEEKS CLASS ACTION STATUS DOESN'T ASK FOR SPECIFIC DAMAGES A. M. R. CORPORATION CONTINUING ITS STRATEGY TO EXPAND INTO NONAIRLINE BUSINESSES SAID IT IS BIDDING TO DESIGN BUILD FINANCE AND OPERATE A PASSENGER TERMINAL AT ATATURK INTERNATIONAL AIRPORT IN ISTANBUL TURKEY A. M. R. WHOSE AIRLINE UNIT IS AMERICAN AIRLINES SAID IN FORT WORTH TEXAS THAT ITS PARTNERS IN THE PROPOSED PROJECT INCLUDE TWO MAJOR TURKISH CONSTRUCTION COMPANIES THE A. M. R. UNIT INVOLVED IN THE TURKISH VENTURE IS A. M. R. TRAINING AND CONSULTING GROUP WHICH PROVIDES AIRPORT DEVELOPMENT AND OTHER TRANSPORTATION SERVICES A. M. R. TRAINING RECENTLY AGREED TO PROVIDE TURKISH AIRLINES WITH ENGLISH INSTRUCTION ANOTHER A. M. R. UNIT A. M. R. SERVICES CORPORATION PROVIDES TURKISH AIRLINES WITH GROUND HANDLING SERVICES AT NEWARK INTERNATIONAL AIRPORT IN NEW JERSEY C. I. T. GROUP HOLDINGS INCORPORATED SAID FOURTH QUARTER NET INCOME ROSE FIVE POINT SEVEN PERCENT ON GROWTH IN ASSETS THE ASSET BASED LENDER SAID NET IN THE QUARTER ROSE TO FORTY FOUR POINT SEVEN MILLION DOLLARS FROM FORTY TWO POINT THREE MILLION DOLLARS A YEAR EARLIER C. I. T. SAID THE QUARTER INCLUDED A CHARGE OF TWO POINT EIGHT MILLION DOLLARS RELATED TO START UP COSTS OF A SECOND MORTGAGE CONSUMER LENDING BUSINESS WITHOUT THOSE COSTS EARNINGS WOULD HAVE RISEN NINE POINT FIVE PERCENT AN OFFICIAL SAID FOR THE YEAR NET ROSE TWELVE PERCENT TO ONE HUNDRED EIGHTY TWO POINT THREE MILLION DOLLARS FROM ONE HUNDRED SIXTY TWO POINT THREE MILLION DOLLARS THE COMPANY WHICH IS SIXTY PERCENT OWNED BY DAI ICHI KANGYO BANK LIMITED OF JAPAN AND FORTY PERCENT OWNED BY CHEMICAL BANKING CORPORATION SAID ASSET GROWTH FOR THE YEAR WAS STRONG CONTINENTAL AIRLINES HOUSTON SAID IT WILL OFFER A FREE QUOTE COMPANION QUOTE TICKET TO CUSTOMERS PURCHASING ROUND TRIP SEATS IN ITS BUSINESSFIRST SECTION ITS HIGHEST PRICED TRANS ATLANTIC SEATS AS WELL AS CERTAIN ECONOMY TICKETS WHEN FLYING TO PARIS FROM SIX SOUTHERN AND WESTERN STATES THE AIRLINE SAID THE TICKETS MUST BE BOUGHT BY MARCH FIFTEENTH TRAVEL WITH THE FREE COMPANION TICKET CAN BEGIN IMMEDIATELY AND MUST BE COMPLETED BY APRIL FIFTEENTH A SPOKESMAN SAID THE DISCOUNT MATCHES A SIMILAR RECENT OFFERING BY AIR FRANCE PROGRAM TRADING FOR THE WEEK ENDED JANUARY SEVENTH ACCOUNTED FOR TWELVE POINT ONE PERCENT OR AN AVERAGE FORTY POINT NINE MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL TWENTY SIX POINT ONE 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 FIFTEEN DIFFERENT STOCKS WITH A TOTAL VALUE OF ONE MILLION DOLLARS OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD TWENTY ONE POINT FIVE PERCENT INVOLVED STOCK INDEX ARBITRAGE DOWN FROM TWENTY EIGHT PERCENT THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCK INDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME FIFTY TWO POINT TWO PERCENT OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS WHILE THIRTY TWO POINT THREE PERCENT WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL FIFTEEN POINT FIVE PERCENT WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES ALL FIVE OF THE MOST ACTIVE FIRMS LEHMAN BROTHERS MORGAN STANLEY C. S. FIRST BOSTON BEAR STEARNS AND KIDDER PEABODY EXECUTED MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS BELL ATLANTIC CORPORATION SAID IT SELECTED THREE VENDORS TO DEVELOP DEVICES THAT CONNECT TO A T. V. SET AND ALLOW A VIEWER TO ORDER VIDEO PROGRAMMING OVER A TELEPHONE LINE THE DEVICES INITIALLY PART OF A MARKET TRIAL WILL BE USED IN THE COMMERCIAL ROLLOUT OF THE BABY BELL'S QUOTE STARGAZER QUOTE PROGRAMMING SERVICE TO HOUSEHOLDS IN THE WASHINGTON D. C. AREA PENDING CERTAIN REGULATORY APPROVALS THE COMPANY HOPES TO PROVIDE THE SERVICES TO ABOUT FOUR THOUSAND TO FIVE THOUSAND HOUSEHOLDS BY THE END OF THE YEAR TERMS WEREN'T DISCLOSED BUT A SPOKESMAN FOR THE REGIONAL PHONE COMPANY SAID THE CONTRACTS WERE POTENTIALLY WORTH HUNDREDS OF MILLIONS DOLLARS THE VENDORS FOR THE DEVICES ALSO KNOWN AS DIGITAL ENTERTAINMENT TERMINALS INCLUDE INTERNATIONAL BUSINESS MACHINES CORPORATION A PARTNERSHIP OF PHILIPS DIGITAL VIDEOCOMMUNICATIONS AND COMPRESSION LABS INCORPORATED BASED IN SAN JOSE CALIFORNIA AND A CONSORTIUM OF DIVICOM INCORPORATED MILPITAS CALIFORNIA ADAPTIVE MICROWARE INCORPORATED FORT WAYNE INDIANA AND EURODEC IN PARIS PHILIPS DIGITAL IS A UNIT OF PHILIPS ELECTRONICS N. V. OF THE NETHERLANDS EURODEC IS A UNIT OF PARIS BASED SAGEM GROUP ELECTRONIC DATA SYSTEMS CORPORATION SAID IT AGREED TO ACQUIRE A MAJORITY INTEREST IN ITALY'S CLOSELY HELD GRUPPO S. AND M. A COMPUTER SERVICES AND SOFTWARE CONCERN IN ROME TERMS WERE NOT DISCLOSED BUT DALLAS BASED E. D. S. A UNIT OF GENERAL MOTORS CORPORATION DETROIT SAID THE AGREEMENT INCLUDES AN OPTION FOR IT TO TAKE FULL OWNERSHIP OF GRUPPO IN THE FUTURE GRUPPO WHICH PROVIDES SOFTWARE DESIGN SERVICES PRIMARILY FOR FINANCIAL AND MANUFACTURING CONCERNS REPORTED NINETEEN NINETY TWO REVENUE OF FIFTY SIX POINT FIVE MILLION DOLLARS E. D. S. SAID THE AGREEMENT GIVES IT ENTRY INTO THE ITALIAN INFORMATION TECHNOLOGY MARKET THE FOURTH LARGEST IN EUROPE E. D. S. SAID IT PLANS TO TARGET THE RELATIVELY UNDEVELOPED MARKET IN ITALY FOR OUTSOURCING INFORMATION TECHNOLOGY SERVICES NATIONAL WESTMINSTER BANCORP INCORPORATED SAID FOURTH QUARTER NET INCOME NEARLY DOUBLED TO NINETY SIX POINT ONE MILLION DOLLARS FROM FIFTY MILLION DOLLARS A YEAR EARLIER THE JERSEY CITY N. J. BASED U. S. UNIT OF NATIONAL WESTMINSTER BANK P. L. C. OF THE UNITED KINGDOM SAID THE STRONG IMPROVEMENTS REFLECT SMALLER PROVISION FOR LOAN LOSSES AND GAINS IN INTEREST INCOME NET INTEREST INCOME FOR THE FOURTH QUARTER WAS TWO HUNDRED SEVEN POINT FIVE MILLION DOLLARS COMPARED WITH ONE HUNDRED NINETY SEVEN POINT TWO MILLION DOLLARS A YEAR EARLIER PROVISIONS FOR LOAN LOSSES WERE NINETEEN MILLION DOLLARS DOWN FROM THIRTY POINT FIVE MILLION DOLLARS A YEAR AGO FOR THE YEAR ENDED DECEMBER THIRTY FIRST NET WAS TWO HUNDRED NINETY EIGHT POINT ONE MILLION DOLLARS UP NINETY TWO PERCENT FROM THE PREVIOUS PERIOD'S ONE HUNDRED FIFTY FIVE POINT TWO MILLION DOLLARS NONACCRUAL LOANS FELL TO THREE POINT TWO PERCENT OF TOTAL LOANS AS OF DECEMBER THIRTY FIRST DOWN FROM SEVEN POINT ONE PERCENT A YEAR EARLIER TOTAL ASSETS WERE TWENTY THREE POINT SIX SIX BILLION DOLLARS UP FROM TWENTY TWO POINT SEVEN THREE BILLION DOLLARS FEDERAL EXPRESS CORPORATION MEMPHIS TENNESSEE SAID AVERAGE DAILY VOLUME OF EXPRESS PACKAGES AND DOCUMENTS ROSE EIGHT PERCENT IN DECEMBER FROM A YEAR EARLIER WHILE THE COMPANY AND SOME ANALYSTS SAID THE GROWTH WAS IN LINE WITH EXPECTATIONS THE INCREASE WAS LESS THAN HALF THAT REPORTED FOR NINETEEN NINETY TWO'S DECEMBER OVER DECEMBER COMPARISON SOME ANALYSTS HAD BEEN PROJECTING GROWTH OF MORE THAN TWENTY PERCENT FOR DECEMBER NINETEEN NINETY THREE BECAUSE OF THE COMPANY'S NEW EXCLUSIVE CONTRACT WITH CATALOG GIANT L. L. BEAN QUOTE THIS IS SOMEWHAT DISAPPOINTING QUOTE SAID PAUL R. SCHLESINGER AN ANALYST WITH DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION FEDERAL EXPRESS SAID IT IS MISLEADING TO COMPARE THE DECEMBER NINETEEN NINETY TWO TO NINETEEN NINETY THREE GROWTH RATE WITH THE DECEMBER NINETEEN NINETY ONE TO NINETEEN NINETY TWO RATE BECAUSE OF THE WAY THE HOLIDAYS FELL THIS PAST DECEMBER AND BECAUSE PRICES WERE FIRMER THIS PAST DECEMBER SOME ANALYSTS ADDED THAT THE NINETEEN NINETY TWO CHRISTMAS WAS STRONGER THAN USUAL AND THAT NINETEEN NINETY ONE WAS UNUSUALLY WEAK AZTEC ENERGY CORPORATION DALLAS REPORTED A LOSS FOR THE FISCAL YEAR ENDED SEPTEMBER THIRTIETH NINETEEN NINETY THREE OF ONE MILLION SEVENTEEN THOUSAND DOLLARS OR FORTY NINE CENTS A SHARE THE LOSS WAS NEARLY TWO HUNDRED THOUSAND DOLLARS LESS THAN THE COMPANY SAID IT EXPECTED EARLIER THIS MONTH THE COMPANY SAID THE NARROWER LOSS IS ATTRIBUTABLE TO CERTAIN ACCOUNTING CHANGES MADE RECENTLY AND TO THE HIRING OF A NEW ACCOUNTING FIRM AZTEC A NATURAL GAS EXPLORATION AND PRODUCTION COMPANY ALSO SAID THAT CERTAIN OF THE ACCOUNTING CHANGES PREVENT IT FROM RELEASING ITS FINAL FISCAL FOURTH QUARTER EARNINGS YET THE COMPANY SAID IT PLANS TO RELEASE THEM WHEN POSSIBLE REVENUE FOR THE FULL YEAR ENDED SEPTEMBER THIRTIETH WAS SEVEN HUNDRED SEVENTY SEVEN THOUSAND SEVEN HUNDRED TWENTY ONE DOLLARS FOR THE FISCAL YEAR ENDED SEPTEMBER THIRTIETH NINETEEN NINETY TWO AZTEC POSTED A NET RESTATED NET LOSS OF ONE HUNDRED SEVENTY NINE THOUSAND DOLLARS OR NINE CENTS A SHARE ON REVENUE OF THREE THOUSAND FOUR HUNDRED TWENTY SIX DOLLARS AZTEC WHICH WENT PUBLIC IN AUGUST NINETEEN NINETY ONE RESTATED ITS NINETEEN NINETY TWO EARNINGS TO REFLECT THE ACCOUNTING CHANGES DOLLAR TIME GROUP INCORPORATED SAID IT ENDED ITS AGREEMENT TO ACQUIRE A REAL NEW YORK BARGAIN A PRIVATELY HELD RETAILER BASED IN NEW YORK IN A TRANSACTION ORIGINALLY VALUED AT FORTY THREE POINT SIX MILLION DOLLARS DOLLAR TIME A HOLLYWOOD FLORIDA OPERATOR OF FIFTY FIVE VARIETY STORES SAID THE TWO COMPANIES DISAGREED ON THE DIRECTION OF DOLLAR TIME'S OPERATIONS MOREOVER DOLLAR TIME IN A STATEMENT SAID IT HAD BECOME QUOTE CONCERNED QUOTE ABOUT THE PROFITABILITY OF A REAL NEW YORK BARGAIN SINCE THE TWO SIDES AGREED TO JOIN FORCES IN NOVEMBER AS PART OF THE ORIGINAL AGREEMENT JOSEPH SASSON CHIEF EXECUTIVE OFFICER OF A REAL NEW YORK BARGAIN AND JEFFREY KLANSKY PRESIDENT OF THE RETAILER BECAME CHIEF EXECUTIVE AND PRESIDENT RESPECTIVELY OF DOLLAR TIME AS WELL AS DIRECTORS YESTERDAY THE TWO MEN RESIGNED THEIR POSITIONS AT DOLLAR TIME DOLLAR TIME SAID GARY DE LUCA FORTY YEARS OLD THE COMPANY'S CHIEF OPERATING OFFICER WAS NAMED PRESIDENT FORD MOTOR COMPANY SAID IT PLANS TO SELL ALL OF ITS SHARES OF EXCEL INDUSTRIES INCORPORATED ENDING THE AUTO MAKER'S MINORITY OWNERSHIP OF THE COMPANY EXCEL BASED IN ELKHART INDIANA DESIGNS AND MAKES AUTOMOTIVE WINDOW SYSTEMS FORD AND FORD MOTOR COMPANY FUND A NONPROFIT CHARITABLE ORGANIZATION OWN TWO MILLION FIVE HUNDRED FIFTY SEVEN THOUSAND ONE HUNDRED TWENTY EIGHT SHARES OF EXCEL COMMON STOCK OR ROUGHLY TWENTY FOUR PERCENT OF THE TOTAL SHARES OUTSTANDING BASED ON EXCEL'S CLOSING PRICE YESTERDAY OF EIGHTEEN POINT THREE SEVEN FIVE DOLLARS ON THE AMERICAN STOCK EXCHANGE THE SHARES ARE VALUED AT FORTY SEVEN MILLION DOLLARS FORD INITIALLY SPENT NINETEEN MILLION DOLLARS IN NINETEEN EIGHTY SIX TO ACQUIRE A FORTY PERCENT STAKE IN EXCEL BUT SOLD SOME OF THOSE SHARES IN NINETEEN NINETY TWO AND LAST YEAR THE LATEST SALE WON'T DILUTE FORD'S PER SHARE EARNINGS THE COMPANY SAID FORD MOTOR COMPANY'S FORTY PERCENT OWNERSHIP IN EXCEL INDUSTRIES INCORPORATED WAS DILUTED OVER TIME TO A TWENTY FOUR PERCENT STAKE AS EXCEL SOLD NEW EQUITY AN ARTICLE FRIDAY INCORRECTLY REPORTED THAT FORD SOLD EXCEL SHARES LOS ANGELES ATTORNEY LYNN BOYD STITES MASTERMIND OF A MASSIVE FRAUD AND LEGAL CORRUPTION SCHEME THAT BILKED INSURANCE FIRMS OF TENS OF MILLIONS OF DOLLARS WAS SENTENCED TO MORE THAN TWELVE YEARS IN PRISON A FEDERAL DISTRICT COURT JUDGE HERE ALSO ORDERED HIM TO FORFEIT FIFTY MILLION DOLLARS PROSECUTORS DESCRIBED MR. STITES AS THE CENTRAL PLAYER IN A SECRET NETWORK OF ALMOST TWO DOZEN LAWYERS AND LAW FIRM EMPLOYEES DUBBED QUOTE THE ALLIANCE QUOTE WHICH DEFRAUDED INSURERS BY RESISTING SETTLEMENTS PROLONGING LITIGATION INVENTING NEW LEGAL CONTROVERSIES AND EVEN REPRESENTING BOTH SIDES OF THE SAME LAWSUIT THE RING BLED BETWEEN FIFTY MILLION DOLLARS AND TWO HUNDRED MILLION DOLLARS FROM INSURANCE COMPANY CLIENTS LAST OCTOBER MR. STITES WAS CONVICTED OF RACKETEERING AND MAIL FRAUD CHARGES EIGHTEEN OTHER INDIVIDUALS PREVIOUSLY WERE CONVICTED OF PARTICIPATING IN THE SCHEME PARAMOUNT COMMUNICATIONS INCORPORATED ATTEMPTED TO TIGHTEN THE BIDDING RULES IN ITS TAKEOVER CONTEST TO PREVENT Q. V. C. NETWORK INCORPORATED AND VIACOM INCORPORATED FROM CHANGING THEIR BIDS AFTER FEBRUARY FIRST PARAMOUNT ALSO PROPOSED RULE CHANGES AIMED AT REDUCING THE CHANCES OF LAST MINUTE GAMESMANSHIP THAT COULD CONFUSE INVESTORS OR NEEDLESSLY PROLONG THE FOURMONTH CONTEST THE ENTERTAINMENT GIANT TOOK THE STEPS AFTER BEING CRITICIZED BY SOME TRADERS AS HAVING ADOPTED A LAISSEZ FAIRE ATTITUDE IN REFEREEING THE CONTEST THE CRITICISM FOLLOWED A RESTRUCTURED BID BY VIACOM A WEEK AGO THAT BOOSTED THE AMOUNT OF CASH BEING OFFERED WHILE LEAVING THE BID'S TOTAL VALUE LARGELY UNCHANGED BOTH BIDDERS ARE OFFERING CASH FOR FIFTY POINT ONE PERCENT OF PARAMOUNT AND SECURITIES FOR THE REMAINING FORTY NINE POINT NINE PERCENT PARTLY BECAUSE VIACOM ANNOUNCED ITS REVISED NINE POINT THREE BILLION DOLLAR OFFER LATE FRIDAY AMID SPECULATION OF A MUCH HIGHER BID AND BECAUSE COMPLETE TERMS OF THE VIACOM OFFER WEREN'T DISSEMINATED IMMEDIATELY Q. V. C. LOST THE CHANCE TO GAIN FIFTY ONE PERCENT OF PARAMOUNT STOCK AND CLOSE OUT THE CONTEST DESPITE ITS HIGHER OFFER NOW VALUED AT TEN BILLION DOLLARS PARAMOUNT SAID IT WAS ONLY QUOTE CLARIFYING OR REFINING QUOTE BIDDERS' EXISTING OBLIGATIONS RATHER THAN MAKING OUTRIGHT CHANGES IT ASKED THE BIDDERS TO FILE ANY CHANGES IN THEIR OFFERS WITH THE SECURITIES AND EXCHANGE COMMISSION BY FIVE P. M. ON THE DAY THEIR OFFERS WOULD OTHERWISE EXPIRE AND IT SAID EACH BIDDER SHOULD BE BARRED FROM CHANGING ITS OFFER OF SECURITIES FOR A MINORITY OF PARAMOUNT SHARES PRIMARILY TO FORCE ITS OPPONENT TO EXTEND ITS OFFER IN DECLARING THAT THE BIDDERS CAN'T CHANGE THEIR OFFERS AFTER FEBRUARY FIRST PARAMOUNT WAS ADDRESSING AN AMBIGUITY THAT MIGHT HAVE ALLOWED VIACOM OR Q. V. C. TO CHANGE THE SECURITIES BEING OFFERED FOR A MINORITY OF PARAMOUNT'S STOCK KNOWN AS THE BACK END UP UNTIL FEBRUARY SEVENTH BECAUSE NEW OFFERS MUST BE KEPT OPEN FOR TEN BUSINESS DAYS AND THE CONTEST IS SUPPOSED TO END FEBRUARY FOURTEENTH PARAMOUNT HAS SAID THAT THE DEADLINE FOR HIGHEST AND FINAL BIDS IS FEBRUARY FIRST BUT SECURITIES LAWS ALLOW CHANGES IN THE SECURITIES BEING OFFERED FOR A MINORITY OF SHARES TO REMAIN OPEN FOR ONLY FIVE DAYS WHICH MIGHT HAVE LEFT THE DOOR OPEN FOR CHANGES IN THE FIRST WEEK OF FEBRUARY SPOKESMEN FOR Q. V. C. AND VIACOM SAID THEY WEREN'T YET AWARE OF THE PROPOSED BIDDING RULE CHANGES AND COULDN'T COMMENT SHARP CORPORATION OF JAPAN SAID IT PLANS TO BUILD A MASSIVE FOUR HUNDRED SEVENTY MILLION DOLLAR PLANT FOR LIQUID CRYSTAL DISPLAYS IN ORDER TO MEET AN EXPECTED INCREASE IN DEMAND THE PLANT IN TAKI CHO JAPAN WILL MAKE ADVANCED L. C. D.S FOR USE IN SUCH PRODUCTS AS AUDIO AND VIDEO EQUIPMENT PERSONAL COMPUTERS AND MULTIMEDIA EQUIPMENT THE PLANT'S FLAGSHIP PRODUCTS WILL BE TEN INCH AND LARGER L. C. D.S WITH THE WIDE VIEWING ANGLE AND HIGH RESOLUTION THAT ARE EXPECTED TO BE IN GREAT DEMAND IN THE ELECTRONICS INDUSTRY IN THE NEAR FUTURE SHARP SAID THE COMPANY SAID IT WOULD START CONSTRUCTION IN JANUARY NINETEEN NINETY FIVE AND BEGIN PRODUCTION IN JULY SHARP EXPECTS TO PRODUCE FOUR HUNDRED FORTY MILLION DOLLARS OF L. C. D.S IN FISCAL NINETEEN NINETY FIVE THE TOTAL FLOOR AREA OF THE TAKI CHO PLANT WILL BE NEARLY TWENTY FIVE PERCENT MORE THAN THAT OF SHARP'S PLANT AT TENRI ONE OF THE LARGEST L. C. D. PLANTS IN THE WORLD SHARP A MAJOR ELECTRONICS MANUFACTURER BASED IN OSAKA JAPAN HAS MORE THAN A FORTY PERCENT SHARE OF THE WORLD WIDE L. C. D. MARKET A SPOKESWOMAN SAID GENCORP INCORPORATED FAIRLAWN OHIO SAID WHILE ITS NINETEEN NINETY THREE FINANCIAL PERFORMANCE MET ITS EXPECTATIONS IT EXPECTS SALES FOR FISCAL NINETEEN NINETY FOUR TO BE QUOTE DOWN FROM NINETEEN NINETY THREE LEVELS QUOTE BUT DECLINED TO GIVE SPECIFIC NUMBERS THE COMPANY HAS A MORE OPTIMISTIC OUTLOOK REGARDING PROFIT FOR THE YEAR BUT CAUTIONS THAT PROFIT IMPROVEMENT WILL DEPEND ON THE RATE OF ECONOMIC GROWTH AND THE SUCCESS OF ITS COST REDUCTION PROGRAMS FOR THE FISCAL YEAR ENDED NOVEMBER THIRTIETH GENCORP REPORTED NET INCOME ROSE NINETY FOUR PERCENT TO FORTY TWO POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND THIRTY FIVE CENTS A SHARE COMPARED WITH TWENTY TWO POINT ONE MILLION DOLLARS OR SEVENTY CENTS A SHARE A YEAR EARLIER SALES FELL SLIGHTLY TO ONE POINT NINE BILLION DOLLARS THE AEROSPACE AUTOMOTIVE AND POLYMER PRODUCTS CONCERN SAID FOR FISCAL NINETEEN NINETY FOUR IT EXPECTS TO SEE GROWTH IN ITS COMMERCIAL BUSINESSES NAMELY POLYMER PRODUCTS AND AUTOMOTIVE OPERATIONS BUT EXPECTS A SUBSTANTIAL DECLINE IN DEFENSE AND AEROSPACE BUSINESSES ONLY TWO DAYS AFTER DELIVERING A SPEECH ABOUT THE SO CALLED QUOTE INFORMATION SUPERHIGHWAY QUOTE VICE PRESIDENT AL GORE LAST NIGHT BECAME ONE OF ITS ROADSIDE ATTRACTIONS COMPUSERVE THE COMPUTER ON LINE SERVICE RUN BY H. AND R. BLOCK INCORPORATED AND U. S. NEWS AND WORLD REPORT MAGAZINE SPONSORED AN ON LINE DISCUSSION WITH THE VICE PRESIDENT WHO FIELDED ABOUT TWENTY QUESTIONS RANGING FROM THE SUPERHIGHWAY'S IMPACT ON INDUSTRY TO THE WAR IN BOSNIA NINE HUNDRED PEOPLE PARTICIPATED IN THE FORTY FIVE MINUTE FORUM THIS IS BELIEVED TO BE THE FIRST TIME A MAJOR POLITICAL FIGURE PARTICIPATED IN A LIVE ON LINE DISCUSSION WHICH ALLOWS SUBSCRIBERS TO TYPE IN A QUESTION AND RECEIVE AN IMMEDIATE TYPED RESPONSE TYPING APPARENTLY IS NOT ONE OF THE VICE PRESIDENT'S FORTES SAID JOSH HARRIS AN ON LINE SERVICES ANALYST AT JUPITER COMMUNICATIONS COMPANY HE SAID MR. GORE TYPED ABOUT SIX ACCURATE WORDS PER MINUTE MR. HARRIS SAID IN FAIRNESS THAT THE BACKSPACE KEY WASN'T WORKING FOR TECHNICAL REASONS BUT ADDED HE'S NOT READY FOR THE SECRETARIAL POOL WHILE A COMPUSERVE SPOKESMAN SAID LINE NOISE INTRODUCED SOME EXTRANEOUS SCREEN CHARACTERS THE VICE PRESIDENT SEEMED TO MAKE A FEW TYPOS OF HIS OWN FOR EXAMPLE HE SPELLED HIS OWN FORMER TITLE SENATOR WITH A K. VICE PRESIDENT AL GORE'S TYPING IN AN ON LINE FORUM WAS MISCHARACTERIZED IN AN ARTICLE FRIDAY BASED ON A PARTIAL TRANSCRIPT A REVIEW OF THE ENTIRE TRANSCRIPT SHOWS RELATIVELY FEW TYPOGRAPHICAL ERRORS ARE THE BIKER MICE FROM MARS ABOUT TO TAKE OVER THE PLANET IF NOT PERHAPS THE STOCK PRICE OF LEWIS GALOOB TOYS WILL RETREAT FROM OUTER SPACE BIG HOPES FOR GALOOB'S LATEST TOY AND A TIE IN T. V. CARTOON HAVE BOOSTED THE STOCK WHILE GENERATING A SHOWER OF UPBEAT WALL STREET OPINIONS ON GALOOB AT NINE AND FIVE EIGHTHS OFF ONE EIGHTH YESTERDAY THE STOCK IS MORE THAN TRIPLE THE PAST YEAR'S LOW GALOOB IS RIGHT ON TRACK ACCORDING TO CHIEF EXECUTIVE OFFICER MARK GOLDMAN HAVING MET ITS SALES TARGET OF TWO MILLION DOLLARS OF BIKER MICE IN NINETEEN NINETY THREE AND GALOOB HAS CONSISTENTLY SAID IT WOULDN'T REALLY RAMP UP THE LINE UNTIL NINETEEN NINETY FOUR SO WHAT'S THE PROBLEM SOME BIG RETAILERS SAY THEY HAVE NO PLANS TO CARRY BIKER MICE AT THIS TIME PERHAPS BECAUSE THE MUCH ADMIRED MICE ARE BEING OVERSHADOWED BY A RIVAL PRODUCT THE MIGHTY MORPHIN POWER RANGERS FROM BANDAI OF JAPAN FOR GALOOB A LOT IS RIDING ON BIKER MICE THE COMPANY IS EXPECTED TO REPORT NEXT MONTH AN ANNUAL LOSS OF ROUGHLY ONE DOLLAR A SHARE ABOUT NINETY CENTS A SHARE WIDER THAN SOME ANALYSTS ESTIMATED THREE MONTHS AGO GALOOB CAN'T RIDE ALONG FOREVER ON SALES OF ITS MAJOR PRODUCTS MICRO MACHINES A LINE OF MINIATURE VEHICLES AND GAME GENIE A VIDEO GAME ACCESSORY THAT MAKES IT EASIER TO SCORE POINTS QUOTE GALOOB'S SHARE PRICE MAKES SENSE ONLY IF BIKER MICE IS A HUGE HIT QUOTE SAYS PAUL VALENTINE TOY ANALYST FOR STANDARD AND POOR'S CORPORATION BUT AFTER THE SUCCESS OF POWER RANGERS YOU HAVE TO BE SKEPTICAL THAT ANOTHER MALE ACTION FIGURE IS GOING TO COME IN AND CONTROL THE CATEGORY NEW ENGLAND BASED RETAILER BRADLEES INCORPORATED WITH ONE HUNDRED TWENTY SIX STORES HAS THIS TO SAY ABOUT BIKER MICE BASED ON SALES TRENDS THIS CHRISTMAS BRADLEES HAS MADE A DECISION NOT TO CARRY IT IN NINETEEN NINETY FOUR SOME RETAILERS SAY BIKER MICE WERE SLOW GETTING TO MARKET THEY SAY THEY DIDN'T GET THE TOYS UNTIL THE SECOND WEEK OF DECEMBER AT REDUCED ALLOTMENTS FOR INSTANCE A GROUP OF FIFTY SEVEN TOYS R. US STORES IN SOUTHERN CALIFORNIA ORDERED AND WERE PROMISED SIXTEEN THOUSAND UNITS BY CHRISTMAS ACCORDING TO PEOPLE FAMILIAR WITH THE ORDER BUT THE STORES GOT ONLY TWO THOUSAND THREE HUNDRED PIECES IN NEW ENGLAND STEPHEN SANDBERG A TOY BUYER FOR SMALLER STORES SAYS HE WAS TO HAVE RECEIVED FOUR THOUSAND EIGHT HUNDRED PIECES BUT GOT LESS THAN ONE TENTH OF THAT TWO DAYS AFTER CHRISTMAS SOME RETAILERS SUSPECTED PRODUCTION PROBLEMS OR EVEN THAT GALOOB MIGHT HAVE BEEN HOARDING THE MUSCULAR LOOKING MICE MR. GOLDMAN DENIES BOTH NOTIONS SAYING WE DID NOT WANT TO TAKE BIKER MICE AND PUT IT INTO THE CHRISTMAS CHAOS LAST WEEK GALOOB TOOK THE UNUSUAL AND COSTLY STEP OF MAKING BIKER MICE DELIVERIES TO EACH OF MELVILLE'S ONE THOUSAND TWO HUNDRED KAYBEE TOY AND HOBBY STORES DID THE MOVE SUGGEST THAT NOT EVERY RETAILER WAS CLAMORING FOR THE LINE MR. GOLDMAN SAYS THE GOAL WAS TO ENSURE KAYBEE HAD SUPPLIES WHEN A BIKER MICE T. V. AD CAMPAIGN STARTED THIS WEEK AT KMART WE'RE TAKING A LOOK AT THE LINE AND SEEING WHAT'S HAPPENING WITH BIKER MICE MERCHANDISE THAT'S AS MUCH AS I CAN SAY RIGHT NOW QUOTE A SPOKESWOMAN SAYS KMART DOESN'T CURRENTLY CARRY THE TOY BIKER MICE CARTOONS HAVE SLIPPED TO A TWO POINT ONE RATING FROM OCTOBER'S TWO POINT FIVE PEAK ACCORDING TO A.CC NIELSEN THAT MEANS TWO POINT ONE PERCENT OF ALL HOUSEHOLDS WITH T. V.S WATCHED SABAN ENTERTAINMENT'S MIGHTY MORPHIN POWER RANGERS SHOW HAS A FIVE POINT SIX RATING MR. GOLDMAN SAYS EARLY BIKER MICE SALES BEAT EXPECTATIONS THE CHALLENGE FOR US IS TO CONTINUE TO MARKET THE LINE WHICH HAS THE POTENTIAL TO GENERATE ONE HUNDRED MILLION DOLLARS IN ANNUAL SALES SOMETIME AFTER NINETEEN NINETY FOUR HE SAYS SEAN MCGOWAN AT GERARD KLAUER MATTISON RECOMMENDS GALOOB BUT SAYS HE URGES INVESTORS NOT TO BUY IF THEY DON'T THINK BIKER MICE WILL BE A HIT HE ENVISIONS ABOUT FORTY FIVE MILLION DOLLARS IN BIKER MICE SALES THIS YEAR SEIDLER COMPANY'S LAURIE SMITH EXPECTS TWENTY FIVE MILLION DOLLARS AT MOST BY CONTRAST THE YEAR'S SALES FOR POWER RANGERS COULD TOP ONE HUNDRED MILLION DOLLARS MR. MCGOWAN FIGURES THE FACTORY MAKING BIKER MICE IN GUANGZHOU CHINA IS OWNED BY JETTA COMPANY OF HONG KONG GALOOB TOLD ME THIS IS THE NEXT TEENAGE MUTANT NINJA TURTLES SO MAKE MANY BIKER MICE SAYS PATRICK LUKE JETTA'S DIRECTOR OF COST AND APPRAISAL FROM WHAT I HEAR IT'S NOT SELLING THAT WELL BY THE SKIN OF THEIR TEETH PROFESSIONAL BEARS POSTED AN ANNUAL PROFIT THEIR FIRST IN THREE YEARS THE BEARS KNOWN AS SHORT SELLERS BET ON SELECTED STOCKS TO DECLINE DROPS IN EAGLE HARDWARE DELL COMPUTER AND KENDALL SQUARE RESEARCH AMONG OTHERS HELPED THE SHORTS' CAUSE IN NINETEEN NINETY THREE THE ROCKBRIDGE SHORT SELLERS' INDEX WHICH MEASURES PERFORMANCE FOR TWENTY LEADING SHORT SELLING FIRMS INCHED UP ZERO POINT TWO PERCENT FOR THE YEAR THANKS TO A TWO PERCENT GAIN IN THE FOURTH QUARTER THE INDEX IS COMPILED BY ROCKBRIDGE PARTNERS IN CHARLOTTE N. C. FIGURES SHOWING THAT CONSUMER SPENDING WAS STRONGER THAN EXPECTED LAST MONTH SENT THE PRICES OF U. S. TREASURY SECURITIES INTO A NOSEDIVE THE BENCHMARK THIRTY YEAR TREASURY BOND DROPPED NEARLY A POINT OR NEARLY TEN DOLLARS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO NINETY NINE AND TWENTY NINE THIRTY SECONDS ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO SIX POINT TWO FIVE PERCENT FROM SIX POINT ONE EIGHT PERCENT ON WEDNESDAY QUOTE TODAY'S PRICE ACTION HIGHLIGHTED HOW VULNERABLE THE MARKET REMAINS DESPITE ITS RECENTLY GOOD TONE QUOTE SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS THE MARKET PROVED TO BE VULNERABLE TO JUST MILDLY UNCOMFORTABLE ECONOMIC NUMBERS TRADERS REACTED TO NEWS FROM THE COMMERCE DEPARTMENT THAT RETAIL SALES ROSE ZERO POINT EIGHT PERCENT DURING DECEMBER MOST WALL STREET ECONOMISTS WERE LOOKING FOR A ZERO POINT FOUR PERCENT GAIN ON THE INFLATION FRONT HOWEVER THE NEWS WAS NOT A SURPRISE THE LABOR DEPARTMENT REPORTED CONSUMER PRICES ROSE ZERO POINT TWO PERCENT IN DECEMBER WHILE THE SO CALLED CORE RATE WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY COMPONENTS ROSE ZERO POINT THREE PERCENT LAST MONTH THE C. P. I. DATA HAD LITTLE IMPACT ON TRADING BUT THE RETAIL SALES DATA IMMEDIATELY PROMPTED TRADERS TO UNLOAD SECURITIES THERE WAS SOME HEDGE FUND SELLING AFTER THE NUMBERS MOSTLY BY PEOPLE WHO HAD PROFITS FROM THE RALLY SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INCORPORATED THE SELLING PRESSURE CONTINUED VIRTUALLY UNABATED THROUGHOUT THE SESSION DEALERS SAID AND AS PRICES MOVED LOWER TECHNICAL LEVELS WERE BROKEN DRAWING IN EVEN MORE SELLING AS TRADING DREW TO A CLOSE THE MARKET WAS AT ITS SESSION LOWS YESTERDAY'S SELL OFF HALTED A RALLY THAT WAS TRIGGERED BY LAST WEEK'S WEAKER THAN FORECAST EMPLOYMENT FIGURES THAT REPORT SET OFF A BUYING FLURRY AMONG INVESTORS WHO HAD BEEN FEARING THAT ECONOMIC GROWTH MIGHT CONTINUE TO ACCELERATE INTO NINETEEN NINETY FOUR THOSE INVESTORS HAD BEEN UNDERINVESTED AND FOUND THEMSELVES CHASING PRICES HIGHER BUT BY YESTERDAY MORNING BOND PRICES WERE AT THE TOP END OF A RANGE THAT HAS BEEN INTACT SINCE EARLY NOVEMBER USING THE RETAIL SALES DATA AS AN EXCUSE INVESTORS REVERSED COURSE AND BEGAN SELLING IN ORDER TO BOOK PROFITS ACCORDING TO DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INCORPORATED THE SELL OFF SHOWED THE MARKET IS STILL IN A RANGE CENTERED ON A SIX AND ONE QUARTER PERCENT YIELD ON THE THIRTY YEAR BOND WE'VE BEEN IN A RANGE FOR SOME TIME AND UNTIL WE SEE WHAT THE FIRST QUARTER LOOKS LIKE WE'LL REMAIN IN A RANGE MR. FINE SAID THAT DOESN'T MEAN NOTE AND BOND PRICES ARE ABOUT TO HEAD BACK TOWARD THE LOWS REACHED DURING THE FIRST FEW DAYS OF JANUARY ANALYSTS SAID EARLY LAST WEEK THE THIRTY YEAR BOND HIT A HIGH YIELD OF SIX POINT FOUR TWO PERCENT AND THE FIVE YEAR NOTE YIELDED FIVE POINT THREE OH PERCENT THE RALLY OF THE PAST WEEK HOWEVER TOOK THE BOND YIELD DOWN TO SIX POINT ONE EIGHT PERCENT AND THE YIELD ON THE FIVE YEAR NOTE TO FOUR POINT NINE FIVE PERCENT I WOULD BE SURPRISED IF WE RETRACED ALL THE WAY TO A SIX POINT FOUR TWO PERCENT YIELD ON THE BOND SAID MS. CAMILLI OF RAMIREZ THERE IS STILL A LOT OF CASH UNDER THE MARKET THAT NEEDS TO BE PUT TO WORK AND IS SLOWLY GOING TO BE WORKED INTO BOTH THE TREASURYS AND CORPORATE BOND MARKETS THAT INVESTMENT DEMAND WILL IN FACT GRADUALLY PUSH YIELDS LOWER MS. CAMILLI SAID QUOTE ALL THAT MONEY IS CHASING TOO FEW SECURITIES AND THAT WILL ULTIMATELY PULL LONG TERM INTEREST RATES LOWER QUOTE SHE SAID MR. KARYDAKIS OF FIRST CHICAGO ALSO ARGUED THAT YESTERDAY'S SELL OFF WOULD TURN OUT TO BE ONLY A PAUSE FOR THE BOND MARKET I DON'T THINK THIS ELIMINATED THE BOND'S PROSPECTS OF TESTING SIX PERCENT MR. KARYDAKIS SAID BUT IT DID SHOW THE PROCESS TOWARD HIGHER PRICE LEVELS WILL BE A PAINFULLY SLOW ONE THE BOND MARKET WILL HAVE MORE ECONOMIC DATA TO CONTEND WITH THIS MORNING WHEN THE FEDERAL RESERVE WILL BE RELEASING DECEMBER INDUSTRIAL PRODUCTION AND CAPACITY FIGURES MOST ECONOMISTS BELIEVE THE NATION'S FACTORIES MINES AND UTILITIES PRODUCED ZERO POINT FOUR PERCENT MORE IN DECEMBER THAN THEY DID IN NOVEMBER AND THAT THE UTILIZATION RATE ROSE TO EIGHTY THREE POINT TWO PERCENT THEN AT MID MORNING TRADERS WILL BE AWAITING WORD ON THE MID MONTH CONSUMER CONFIDENCE REPORT FROM THE UNIVERSITY OF MICHIGAN LATE YESTERDAY THE FEDERAL RESERVE REPORTED THAT ITS WIDELY WATCHED M. TWO A MEASURE OF MONEY SUPPLY ROSE SEVEN POINT FOUR BILLION DOLLARS IN THE WEEK ENDED JANUARY THIRD THAT PUTS M. TWO GROWTH RATE AT ONE POINT SIX PERCENT COMPARED WITH THE FOURTH QUARTER BASE OF NINETEEN NINETY TWO WHICH IS JUST WITHIN THE FED'S TARGET RANGE OF ONE PERCENT TO FIVE PERCENT M. TWO INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN ONE HUNDRED THOUSAND DOLLARS NEXT WEEK WILL BE A SHORTENED ONE FOR THE CASH BOND MARKET THE PUBLIC SECURITIES ASSOCIATION HAS RECOMMENDED THAT THE MARKET BE CLOSED MONDAY IN OBSERVANCE OF THE MARTIN LUTHER KING HOLIDAY MORE THAN ONE BILLION DOLLARS OF CORPORATE DEBT WAS SOLD YESTERDAY INCLUDING OFFERINGS FROM HEILEMAN ACQUISITION COMPANY AND NEWS AMERICA HOLDINGS INCORPORATED MEANWHILE TRADING IN THE INVESTMENT GRADE SECTOR WAS EXTEMELY LIGHT WITH PRICES FOLLOWING TREASURYS LOWER MOST JUNK BOND PRICES ENDED UNCHANGED WITH ACTIVITY TAILING OFF AFTER A MODERATE AMOUNT OF TRADING DURING THE MORNING HEILEMAN ACQUISITION WHICH WAS EXPECTED TO COME TO MARKET WEDNESDAY SOLD ONE HUNDRED SIXTY MILLION DOLLARS OF TEN YEAR SENIOR SUBORDINATED NOTES AT PAR TO YIELD NINE POINT SIX TWO FIVE PERCENT THE NOTES ARE NONCALLABLE FOR FOUR YEARS AND RATED SINGLE B. THREE BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE B. MINUS BY STANDARD AND POOR'S CORPORATION B. T. SECURITIES CORPORATION WAS LEAD MANAGER OF THE OFFERING THE NOTES HAVE A THREE YEAR INITIAL PUBLIC OFFERING CALL OPTION FOR UP TO THIRTY FIVE PERCENT OF THE ISSUE HEILEMAN ACQUISITION WAS ESTABLISHED BY LEVERAGE BUYOUT SPECIALISTS HICKS MUSE AND COMPANY TO ACQUIRE G. HEILEMAN BREWING COMPANY THE FIFTH LARGEST U. S. BREWER AND PRODUCER OF BRANDS SUCH AS COLT FORTY FIVE AND OLD STYLE PROCEEDS FROM YESTERDAY'S OFFERING WILL BE USED TO FINALIZE THE TRANSACTION WHICH IS SCHEDULED TO CLOSE ON JANUARY TWENTY FIRST ACCORDING TO A SPOKESMAN FROM HICKS MUSE AND COMPANY THE SPOKESMAN SAID HEILEMAN ALSO PLANS TO REFINANCE ITS TWO HUNDRED FIFTY MILLION DOLLARS OF OUTSTANDING DEBT OTHER NEW ISSUES YESTERDAY INCLUDED NEWS AMERICA HOLDINGS' TWO HUNDRED MILLION DOLLARS OF THIRTY YEAR DEBENTURES PRICED AT PAR TO YIELD SEVEN POINT SEVEN FIVE PERCENT THE BONDS HAVE A SEVEN AND THREE QUARTERS PERCENT COUPON NEWS AMERICA HOLDINGS IS A UNIT OF NEWS CORPORATION LIMITED THE NOTES ARE RATED B. A ONE BY MOODY'S AND TRIPLE B. MINUS BY S. AND P. THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY WHILE MOST OF THE BONDS ISSUED YESTERDAY CAME FROM GOVERNMENT AGENCIES TWO INVESTMENT BANKING FIRMS J. P. MORGAN AND COMPANY AND MERRILL LYNCH AND COMPANY ALSO SOLD SECURITIES J. P. MORGAN ISSUED THREE HUNDRED MILLION DOLLARS OF FIFTEEN YEAR NOTES WITH SIX AND ONE QUARTER PERCENT COUPONS PRICED AT NINETY NINE POINT EIGHT EIGHT EIGHT TO YIELD SIX POINT TWO SIX TWO PERCENT THE NONCALLABLE NOTES ARE RATED A A TWO BY MOODY'S AND DOUBLE A PLUS BY S. AND P. AND WILL BE SOLD THROUGH UNDERWRITERS LED BY J. P. MORGAN MERRILL ISSUED TWO HUNDRED MILLION DOLLARS OF TWELVE YEAR NONCALLABLE NOTES WITH SIX AND ONE QUARTER PERCENT COUPONS PRICED AT NINETY NINE POINT THREE FOUR TO YIELD SIX POINT THREE THREE PERCENT THE NOTES WHICH WERE LEAD MANAGED BY MERRILL ARE RATED SINGLE A ONE BY MOODY'S AND SINGLE A PLUS BY S. AND P. MUNICIPAL SECURITIES SHOWED BROAD LOSSES SELLING PRESSURE FROM DEALERS AND INSTITUTIONAL ACCOUNTS CAUSED A PRETTY UGLY DAY IN WHICH PRICES GENERALLY SLUMPED AT LEAST ONE HALF TO THREE QUARTERS POINT SAID GREG GIZZI SENIOR VICE PRESIDENT AT DILLON READ AND COMPANY THE ONLY ACTIVITY I SAW WAS SELLING MEANWHILE NEW MUNICIPAL SUPPLY HAS BEEN PLENTIFUL THIS WEEK TOTALING ROUGHLY THREE BILLION DOLLARS WITH NUMEROUS NEW DEALS FROM WHICH TO PICK AND CHOOSE MR. GIZZI SAID INSTITUTIONAL INVESTORS ARE FINDING THEIR VALUE IN THE NEW DEALS AND SELLING INTO THE SECONDARY MARKET THERE IS ALSO QUOTE DEALER SELLING ON TOP OF THAT QUOTE HE SAID ADDING THAT QUOTE UNLESS TREASURYS TURN AROUND THE TONE WILL STAY FAIRLY NEGATIVE QUOTE BEAR STEARNS AND COMPANY PRICED THE ONE HUNDRED THIRTY THREE POINT SEVEN MILLION DOLLARS PLANO INDEPENDENT SCHOOL DISTRICT COLLIN COUNTY TEXAS REFUNDING ISSUE TO YIELD FROM TWO POINT SIX FIVE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT ONE OH PERCENT IN TWO THOUSAND ELEVEN MORTGAGE SECURITIES DECLINED BUT NOT AS SHARPLY AS COMPARABLE TREASURY ISSUES NEAR THE CLOSE OF TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SIX AND ONE HALF S. FOR FEBRUARY DELIVERY WERE OFF SIXTEEN THIRTY SECONDS AT NINETY NINE AND TWENTY TWO THIRTY SECONDS AMONG OTHER SIX AND ONE HALF S. FOR FEBRUARY DELIVERY FEDERAL HOME LOAN MORTGAGE CORPORATION GOLDS AND FEDERAL NATIONAL MORTGAGE ASSOCIATION WERE BOTH DOWN SIXTEEN THIRTY SECONDS AT NINETY NINE AND TWENTY SIX THIRTY SECONDS AND NINETY NINE AND TWENTY TWO THIRTY SECONDS RESPECTIVELY THE LITTLE GUYS RAKED IN BIG BUCKS FROM THE INVESTING PUBLIC LAST YEAR SMALL COMPANIES BACKED BY VENTURE CAPITALISTS RAISED A RECORD SIX POINT NINE BILLION DOLLARS IN INITIAL PUBLIC OFFERINGS LAST YEAR CONCLUDES AN ANNUAL SURVEY BY VENTUREONE A SAN FRANCISCO RESEARCH CONCERN THE FIGURE BOOSTED BY INVESTORS' REVIVED INTEREST IN HIGH TECHNOLOGY INDUSTRY SURPASSED THE NINETEEN NINETY TWO RECORD OF FIVE POINT FIVE BILLION DOLLARS THE FIRM REPORTS THOUGH MANY COMPANIES OUTSIDE THE STUDY'S SCOPE ALSO WENT PUBLIC LAST YEAR THE VENTUREONE SURVEY SHEDS LIGHT ON A PARTICULARLY ENTREPRENEURIAL AND FAST GROWING GROUP CONCERNS THAT HAVE WON SUPPORT FROM VENTURE CAPITALISTS FOR MANY ENTREPRENEURS WHO TURN TO VENTURE CAPITAL EARNING BIG PROFITS ON PAPER AT LEAST IS THE ULTIMATE GOAL IN GOING PUBLIC THE AVERAGE ANNUAL REVENUE OF SURVEYED COMPANIES RANGED BETWEEN THREE POINT TWO MILLION DOLLARS FOR MEDICAL COMPOUNDS PRODUCERS AND EIGHTY SEVEN MILLION DOLLARS FOR ELECTRONICS AND COMPUTER CONCERNS THE AVERAGE NUMBER OF EMPLOYEES RANGED FROM FIFTY THREE AT MEDICAL COMPOUNDS CONCERNS TO ONE THOUSAND FOUR HUNDRED EIGHTEEN AT HEALTH CARE SERVICES DEPENDING ON THE INDUSTRY THE AVERAGE AMOUNT RAISED FROM VENTURE CAPITALISTS BEFORE THE CONCERNS WENT PUBLIC RANGED FROM ELEVEN MILLION DOLLARS TO TWENTY FOUR MILLION DOLLARS AVERAGE AGE OF THE COMPANIES RANGED FROM FIVE POINT FOUR YEARS TO TEN POINT SEVEN YEARS COMPUTER START UPS DOMINATED THE PUBLIC OFFERINGS LAST YEAR VENTUREONE SAYS THESE BUSINESSES RAISED ABOUT TWO POINT FIVE BILLION DOLLARS IN NINETEEN NINETY THREE THAT'S ALMOST ONE BILLION DOLLARS MORE THAN IN NINETEEN NINETY TWO IN THE ELECTRONICS AREA FOR EXAMPLE THERE WERE TWENTY FOUR I. P. O.S UP FROM FOURTEEN IN NINETEEN NINETY TWO ON AVERAGE SUCH START UPS WERE TEN YEARS OLD HAD THREE HUNDRED FIFTY NINE EMPLOYEES AND HAD PREVIOUSLY RAISED FOURTEEN POINT SIX MILLION DOLLARS FROM VENTURE CAPITAL INVESTORS THE TYPICAL CONCERN HAD ANNUAL REVENUE OF EIGHTY SEVEN POINT THREE MILLION DOLLARS AND NET INCOME OF ONE MILLION DOLLARS QUOTE HIGH TECH COMPANIES MANY THAT HADN'T BEEN ABLE TO GO PUBLIC PREVIOUSLY FINALLY CAME INTO MATURITY QUOTE IN NINETEEN NINETY THREE SAYS INVESTMENT BANKER SANFORD ROBERTSON OF ROBERTSON STEPHENS AND COMPANY IN SAN FRANCISCO THEY BECAME MATURE AT A TIME WHEN TECHNOLOGY STOCKS WERE GETTING MORE OF AN AUDIENCE IN THE PUBLIC MARKET YET THERE WAS A PAUCITY OF OFFERINGS LAST YEAR AMONG BIOTECHNOLOGY AND HEALTH CARE COMPANIES THE DARLINGS OF THE NEW ISSUES MARKET IN NINETEEN NINETY TWO UNCERTAINTY OVER PRESIDENT CLINTON'S HEALTH CARE REFORM PROPOSALS AND THE BIOTECHNOLOGY INDUSTRY'S FAILURE TO COME UP WITH A BLOCKBUSTER PRODUCT STIFLED INTEREST IN THOSE INDUSTRIES THE VENTUREONE REPORT SAYS TOTAL HEALTH CARE OFFERINGS SLID FIFTY SIX PERCENT TO SEVEN HUNDRED FORTY MILLION DOLLARS FROM ONE POINT SEVEN BILLION DOLLARS IN NINETEEN NINETY TWO SO FAR AT LEAST THE OVERALL BOOM IN PUBLIC OFFERINGS SHOWS LITTLE SIGNS OF ABATING IN NINETEEN NINETY FOUR MR. ROBERTSON SAYS THAT HIS FIRM PLANS TO UNDERWRITE TWELVE NEW ISSUES DURING THIS YEAR'S FIRST QUARTER ROBERTSON STEPHENS PARTICIPATED IN TWENTY FOUR I. P. O.S IN ALL OF NINETEEN NINETY THREE NONETHELESS DAVID GLEBA PRESIDENT OF VENTUREONE DOESN'T EXPECT NINETEEN NINETY THREE'S FAVORITE INDUSTRY SEGMENTS WILL MAINTAIN THEIR POPULARITY THIS YEAR THE PUBLIC MARKET HAS A FASHION STREAK HE SAYS IT IS WILLING TO INVEST IN HIGH RISK DEVELOPMENT CONCEPTS BUT JUST AS WILLING TO DUMP THEM BECAUSE COMPANIES HAVEN'T DELIVERED RESULTS FAST ENOUGH HE EXPLAINS IN NINETEEN NINETY THREE INVESTOR INTEREST IN THESE YOUNG COMPANIES OFTEN FOCUSED ON THE NEW MEDIA AND COMMUNICATIONS INDUSTRY SEGMENTS THE SPOTLIGHT ON INTERACTIVE MEDIA AND THE EMERGING INFORMATION SUPERHIGHWAY HELPED EARLY STAGE COMPANIES SUCH AS THREE D. O. CORPORATION AND BROADBAND TECHNOLOGIES INCORPORATED THREE D. O. IN SAN MATEO CALIFORNIA RAISED FORTY FOUR MILLION DOLLARS TO DEVELOP INTERACTIVE MULTIMEDIA GAMES BROADBAND A RESEARCH TRIANGLE N. C. COMPANY THAT IS DEVELOPING TECHNOLOGY TO ENABLE PHONE COMPANIES TO DELIVER VIDEO ON DEMAND SERVICES TO THE HOME RAISED SIXTY THREE MILLION DOLLARS THE HIGH TECH REVIVAL ALSO BENEFITED A WIDE SPECTRUM OF COMPUTER TECHNOLOGY COMPANIES AMONG THEM INTUIT INCORPORATED WHICH MAKES QUICKEN ACCOUNTING SOFTWARE POWERSOFT CORPORATION AND GUPTA CORPORATION PROVIDERS OF CLIENT SERVER SOFTWARE AND AUSPEX SYSTEMS INCORPORATED A PROVIDER OF NETWORK SERVERS AND ADVANCED NETWORK SERVICES BUT COMPANIES OUTSIDE THE COMPUTERS AND NEW MEDIA FIELDS MADE THREE OF THE LARGEST OFFERINGS AMERICAN MOBILE SATELLITE CORPORATION A WASHINGTON D. C. SATELLITE OPERATOR RAISED ONE HUNDRED SEVENTY EIGHT MILLION DOLLARS THE COMPANY PARTLY OWNED BY MTEL CORPORATION MCCAW CELLULAR COMMUNICATIONS INCORPORATED AND GENERAL MOTORS CORPORATION'S HUGHES COMMUNICATIONS UNIT PLANS TO LAUNCH ITS FIRST SATELLITE THIS YEAR PETSMART INCORPORATED A CHAIN OF PETFOOD SUPERMARKETS BASED IN PHOENIX RAISED ONE HUNDRED THIRTY MILLION DOLLARS SAN FRANCISCO'S KENETECH CORPORATION WHICH OWNS U. S. WINDPOWER INCORPORATED A LARGE DEVELOPER OF WIND POWER ENERGY TECHNOLOGY RAISED NINETY NINE MILLION DOLLARS KENETECH ALSO HAD ONE OF THE HIGHEST VALUATIONS WHEN IT WENT PUBLIC LAST SEPTEMBER FOUR HUNDRED EIGHTY SEVEN MILLION DOLLARS SIEMENS A. G. THE BIG GERMAN ELECTRONICS CONCERN SHOCKED THE EQUITIES MARKET BY ANNOUNCING IT EXPECTS PROFIT TO FALL BY TEN PERCENT TO FIFTEEN PERCENT IN THE CURRENT FISCAL YEAR THE DISCLOSURE CAME DURING A GENERALLY DOWNBEAT NEWS CONFERENCE IN WHICH SIEMENS CHAIRMAN HEINRICH VON PIERER SAID PROFIT FROM THE COMPANY'S WIDE RANGING INVESTMENT PORTFOLIO WHICH IN THE PAST HAS HELPED OFFSET DEPRESSED OPERATING RESULTS COULD NOT BE COUNTED ON FOR THE FISCAL YEAR ENDING SEPTEMBER THIRTIETH IF THE FORECAST IS REALIZED IT WOULD REPRESENT THE FIRST TIME IN SEVEN YEARS THAT SIEMENS' NET INCOME HASN'T INCREASED REACTING TO THE NEWS SIEMENS'S SHARES FELL FOUR POINT EIGHT PERCENT TO SEVEN HUNDRED TWENTY SIX MARKS FOUR HUNDRED EIGHTEEN DOLLARS AND SIXTY EIGHT CENTS DOWN THIRTY SIX POINT FIVE OH MARKS ON THE FRANKFURT STOCK EXCHANGE THE FORECAST WAS MADE DESPITE HIGHER SALES AND NET INCOME FOR THE FISCAL FIRST QUARTER RESULTS OF WHICH WERE ANNOUNCED DURING THE NEWS CONFERENCE FOR THE QUARTER ENDED DECEMBER THIRTY FIRST NET ROSE TWO POINT TWO PERCENT TO FOUR HUNDRED FIFTEEN MILLION MARKS TWO HUNDRED THIRTY NINE POINT THREE MILLION DOLLARS FROM FOUR HUNDRED SIX MILLION A YEAR EARLIER SALES FOR THE PERIOD WERE UP TWO POINT FOUR PERCENT TO ONE POINT THREE BILLION WHILE NEW ORDERS WERE UP FIFTEEN PERCENT TO TWENTY ONE POINT FOUR BILLION MARKS BUT KARL HERMANN BAUMANN CHIEF FINANCIAL OFFICER SAID NEW ORDERS AND SALES FOR THE GROUP ARE EXPECTED TO STAGNATE FOR THE YEAR AS A WHOLE WHILE PRICE PRESSURES INCREASE QUOTE I THINK PEOPLE ARE GENUINELY SURPRISED QUOTE SAID IAN MACLEOD PARIS BASED EUROPEAN TECHNOLOGY ANALYST FOR COUNTY NATWEST RESEARCH NATWEST HAD PROJECTED AN EIGHT PERCENT INCREASE IN SIEMENS NET FOR THE CURRENT YEAR HE SAID BUT QUICKLY REDUCED THE FORECAST TO MATCH MR. BAUMANN'S STATEMENTS NATWEST ALSO SWITCHED ITS RECOMMENDATION FOR SIEMENS SHARES FROM BUY TO SELL FOLLOWING THE NEWS MR. MACLEOD SAID AN ANALYST FOR A FRANKFURT BANK SUGGESTED THAT SIEMENS' SURPRISING ANNOUNCEMENT COULD BE AN ATTEMPT TO SET THE STAGE FOR DRASTIC JOB CUTS DURING THIS FISCAL YEAR INDEED MR. VON PIERER ANNOUNCED YESTERDAY THAT THE COMPANY WILL BRING ITS WORK FORCE TO FEWER THAN THREE HUNDRED NINETY THOUSAND EMPLOYEES DURING THE FISCAL YEAR A NET REDUCTION OF MORE THAN FIFTEEN THOUSAND OF THESE JOB CUTS ABOUT FIVE THOUSAND POSTS WERE SLICED DURING THE FIRST QUARTER OF THE FIFTEEN THOUSAND ABOUT A THIRD WILL BE FROM THE MONEY LOSING COMPUTER UNIT SIEMENS NIXDORF INFORMATIONSSYSTEME A. G. MR. BAUMANN ADDED LATER MR. VON PIERER CONFIRMED REPORTS THAT THE COMPANY IS NAMING GERHARD SCHULMEYER PREVIOUSLY HEAD OF THE U. S. OPERATIONS OF SWEDISH SWISS ENGINEERING CONCERN A. B. B. ASEA BROWN BOVERI LIMITED TO TRY TO TURN SIEMENS NIXDORF AROUND SIEMENS A. G.'S SALES FOR THE FISCAL FIRST QUARTER ENDED DECEMBER THIRTY FIRST ROSE TWO POINT FOUR PERCENT TO SEVENTEEN POINT THREE BILLION MARKS NINE POINT EIGHT NINE BILLION DOLLARS FROM SIXTEEN POINT NINE BILLION MARKS A YEAR EARLIER AN ARTICLE FRIDAY INCORRECTLY STATED THAT SALES ROSE TO ONE POINT THREE BILLION MARKS THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE PERCENT HIGH TWO AND FIFTEEN SIXTEENTHS PERCENT LOW TWO AND SEVEN EIGHTHS PERCENT NEAR CLOSING BID TWO AND FIFTEEN SIXTEENTHS PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH FIVE PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH EIGHT PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT ONE OH PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE THREE PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT ONE FIVE PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO ONE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED SIXTY FOUR DAYS THREE POINT THREE OH PERCENT TWO HUNDRED SIXTY FIVE TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE ONE PERCENT THIRTY DAYS THREE POINT ONE THREE PERCENT SIXTY DAYS THREE POINT ONE SEVEN PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE FOUR PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT FIVE NINE PERCENT THREE MONTHS TWO POINT SEVEN OH PERCENT SIX MONTHS TWO POINT NINE ONE PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH THREE PERCENT ONE MONTH THREE POINT ONE OH PERCENT THREE MONTHS THREE POINT TWO THREE PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE PERCENT THIRTY DAYS THREE POINT OH ONE PERCENT SIXTY DAYS THREE POINT OH THREE PERCENT NINETY DAYS THREE POINT OH SIX PERCENT ONE HUNDRED TWENTY DAYS THREE POINT OH NINE PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE FIVE PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND ONE EIGHTH PERCENT THREE PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT FOUR MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND THREE EIGHTHS PERCENT SIX MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT EIGHT PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY TENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT OH TWO PERCENT THIRTEEN WEEKS THREE POINT ONE EIGHT PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT NINE OH PERCENT SIXTY DAYS SIX POINT NINE SEVEN PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT NINE PERCENT SIXTY DAYS SIX POINT NINE NINE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN FOUR PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS NORTH AMERICAN PAPER PRODUCERS BATTERED BY A FOUR YEAR SLUMP MAY FINALLY GET SOME RELIEF THIS YEAR FOURTH QUARTER RESULTS ARE EXPECTED TO SHOW ONLY MODEST IMPROVEMENT FROM THE PREVIOUS YEAR'S DEPRESSED LEVELS FOR THE INDUSTRY AS A WHOLE BUT THE U. S. ECONOMIC RECOVERY AND HIGHER PRICES FOR CERTAIN PAPER PRODUCTS SHOULD LEAD TO STRONGER EARNINGS GROWTH IN THE YEAR AHEAD ANALYSTS AND SOME INDUSTRY OFFICIALS SAY AND WOOD PRODUCTS THE MAINSTAY FOR MANY COMPANIES LAST YEAR CONTINUE TO BENEFIT FROM BUOYANT DEMAND AND TIGHT SUPPLIES QUOTE IT HAS BEEN A VERY LONG DOWN CYCLE AND BOTTOM QUOTE SAYS LOWELL MOHOLT INVESTOR RELATIONS DIRECTOR AT WEYERHAEUSER COMPANY BUT WE'RE CONFIDENT THAT WE'RE ON THE UPLEG CHIP DILLON AN ANALYST WITH SALOMON BROTHERS SAYS ANNUAL EARNINGS FOR THE U. S. PAPER AND FOREST PRODUCTS INDUSTRY COULD RISE BY MORE THAN THIRTY PERCENT IN NINETEEN NINETY FOUR MARK DIVERIO OF U. B. S. SECURITIES SAYS THE FIRST QUARTER WILL LOOK A LOT LIKE THE FOURTH QUARTER OF NINETEEN NINETY THREE BUT HE PREDICTS EARNINGS WILL GAIN MOMENTUM AS THE YEAR GOES ON SOME INDUSTRY OBSERVERS CAUTION THAT VARIOUS FACTORS COULD STILL SLOW THE PACE OF RECOVERY WHILE THE U. S. ECONOMY IS PERKING UP EUROPE AND JAPAN ARE STILL MIRED IN MUD NOTES VINCENT HANNITY AN INVESTOR RELATIONS OFFICIAL WITH BOISE CASCADE CORPORATION UNTIL CONSUMPTION OF PAPERS IN THOSE REGIONS STRENGTHENS YOU WON'T SEE A FULL ROBUST RECOVERY FOR SOME PAPER GRADES HE SAYS MEANWHILE MAKERS OF PACKAGING MATERIALS ARE STARTING TO BENEFIT FROM U. S. INDUSTRIAL GROWTH PRICES FOR LINERBOARD USED IN CORRUGATED CONTAINERS ROSE TWENTY FIVE DOLLARS A TON DURING THE FOURTH QUARTER TO ABOUT THREE HUNDRED FIFTEEN DOLLARS A TON AND UNION CAMP CORPORATION AND STONE CONTAINER CORPORATION HAVE ANNOUNCED A FURTHER THIRTY DOLLAR PRICE INCREASE FOR FEBRUARY FIRST THE FIRMING MARKET FOR CONTAINER BOARD IS INDICATIVE OF THE ECONOMIC RECOVERY TAKING PLACE SAYS WEYERHAEUSER'S MR. MOHOLT CORRUGATED BOXES TYPICALLY LEAD THE WAY AS SHIPMENTS OF INDUSTRIAL GOODS PICK UP HE SAYS PRICES FOR WHITE PAPERS USED IN OFFICES TEND TO FOLLOW MAKERS OF UNCOATED WHITE PAPER FOR PHOTOCOPYING HAVE ANNOUNCED PRICE INCREASES FOR JANUARY ANALYSTS SAY THOSE INCREASES MAY NOT STICK HOWEVER PARTLY BECAUSE TWO NEW BUSINESS PAPER MACHINES ARE DUE TO START PRODUCING IN THE U. S. THIS SPRING POTENTIALLY INCREASING SUPPLY NEWSPRINT PRODUCERS WHO PUSHED PRICES UP LAST SPRING ONLY TO WATCH THEM ROLL BACK LATER HAVE ANNOUNCED A MARCH INCREASE OF FORTY EIGHT DOLLARS A METRIC TON OR ABOUT ELEVEN PERCENT IN EASTERN NORTH AMERICA SOME HAVE CURBED PRODUCTION TO SOAK UP EXCESS SUPPLY AND IMPROVE PROSPECTS FOR IMPLEMENTING THE INCREASE PULP PRICES WHICH WERE DRIVEN BELOW HALF THEIR NINETEEN EIGHTY NINE LEVELS LATE LAST YEAR ARE STARTING TO EDGE UP BUT THE BUSINESS REMAINS WEAK QUOTE WE THINK WE'LL GET INCREASES IN THE FIRST QUARTER BUT IT'S BASICALLY SUPPLY DRIVEN BECAUSE COMPANIES ARE TAKING DOWN TIME QUOTE SAYS VAL SHARP INVESTOR RELATIONS MANAGER AT MACMILLAN BLOEDEL LIMITED IN VANCOUVER BRITISH COLUMBIA PRICES FOR WOOD PRODUCTS BUTTRESSED BY ENVIRONMENTAL RESTRICTIONS ON TIMBER HARVESTING SHOULD STAY STRONG IN NINETEEN NINETY FOUR ANALYSTS SAY LATENT DEMAND FOR NEW HOMES IS BEING UNLEASHED AS PEOPLE SENSE THAT U. S. INTEREST RATES HAVE BOTTOMED OUT SAYS WEYERHAEUSER'S MR. MOHOLT EVEN LAST NOVEMBER'S PROPOSAL BY THE U. S. ENVIRONMENTAL PROTECTION AGENCY FOR MORE STRINGENT POLLUTION REGULATIONS COULD ULTIMATELY ENHANCE THE PAPER INDUSTRY'S FORTUNES DESPITE EXPECTED COMPLAINTS FROM PAPER PRODUCERS SOME ANALYSTS SAY MARK ROGERS AN ANALYST WITH PRUDENTIAL SECURITIES SAYS IMPLEMENTATION OF THE PROPOSALS IN NINETEEN NINETY FIVE COULD CAUSE COMPANIES TO SPEND CAPITAL ON ENVIRONMENTAL EQUIPMENT INSTEAD OF NEW CAPACITY RESTRICTING SUPPLY AND SUPPORTING PRICES IN THE FOLLOWING YEARS INVESTORS IN EURO DISNEY S. C. A. WILL NO DOUBT THANK RAYMOND SOKOLOV AUTHOR OF QUOTE FRENCH SPANISH KILL ART WITH KINDNESS QUOTE LEISURE AND ARTS DECEMBER TWENTY NINTH FOR GETTING A BIT OF THEIR OWN BACK AT THE OLD WORLD INGRATES WHO HAVE SHUNNED THEIR FINE THEME PARK HOWEVER ONE WONDERS IF THE REST OF YOUR READERS WOULDN'T PREFER A CANDID VIEW OF EUROPEAN CULTURAL POLICY TO THE RATHER TENDENTIOUS PICTURE MR. SOKOLOV PRESENTS THEY MIGHT FOR INSTANCE BE INTERESTED TO LEARN THAT UNLIKE AMERICANS PERHAPS THE FRENCH ARE BY AND LARGE UNDER NO ILLUSIONS ABOUT YANKEE JUNK ART BEING ART AT ALL OR FOR THAT MATTER U. S. POPULAR CULTURE BEING CULTURE ON THE WHOLE FRENCH PEOPLE RECOGNIZE THAT WHAT CULTURAL CONSUMERS AND ART PROLES PAY FOR IS NEITHER CULTURE NOR ART BUT MERELY PRODUCT THE SIMPLE FACT THAT A FRENCH NEWSPAPER LISTS SHOWTIMES FOR GERMINAL AND JURASSIC PARK UNDER THE SINGLE RUBRIC ARS ET SPECTACLES DOESN'T LEAVE MANY READERS WONDERING WHICH IS ART AND WHICH SPECTACLE MOREOVER IT IS PRECISELY TO ENSURE THERE IS AN ADEQUATE SUPPLY OF BOTH ON OFFER THAT THE FRENCH GOVERNMENT HAS BEEN RATCHETING UP RESTRICTIONS ON AUDIOVISUAL IMPORTS NOR IN SO DOING IS IT BY ANY MEANS ACTING TO CONSTRAIN DEMOCRATIC FREEDOM OF CHOICE ON THE CONTRARY IT IS TRYING TO MAINTAIN THE FAR BROADER FREE CHOICE AFFORDED BY THE SO CALLED CULTURAL EXCEPTION AS COMPARED WITH THAT PREVAILING IN UNBRIDLED FREE MARKETS AFTER ALL AS MR. SOKOLOV HIMSELF ADMITS IN ADDITION TO EUROPEAN MADE FILMS QUOTE MARIE YVONNE AND THIERRY CAN STILL SEE JURASSIC PARK IF THEY WANT QUOTE YES AND AS MANY MORE WILDLY POPULAR AMERICAN MOVIES AS THEY PLEASE BUT WHAT ABOUT THEIR AMERICAN COUNTERPARTS OF THE VARIOUS OSCAR NOMINEES FOR BEST FOREIGN FILM HOW MANY AMERICANS LIVING OUTSIDE NEW YORK OR SAN FRANCISCO WILL HAVE HAD A CHANCE TO SEE MORE THAN A SINGLE PROBABLY DUBBED SPECIMEN LAISSEZ FAIRE HAS EFFECTIVELY LEFT THEM WITH LITTLE CHOICE BUT TO TAKE WHAT HOLLYWOOD DISHES UP THE CLINTON ADMINISTRATION ASKED THE SUPREME COURT TO RULE THAT A FEDERAL LAW BARRING FRAUD IN INITIAL PUBLIC SALES OF STOCK ALSO APPLIES TO RESALES OF THE SHARES THE ADMINISTRATION MADE THE REQUEST IN A BRIEF URGING THE HIGH COURT TO REVIEW A DISPUTE BETWEEN A NEW YORK INVESTMENT BANKING FIRM ALLEN AND COMPANY AND AN AUSTRALIAN HOLDING COMPANY PACIFIC DUNLOP LIMITED THE JUSTICES HAD ASKED THE ADMINISTRATION FOR ADVICE ON WHETHER TO HEAR THE PRIVATE DISPUTE THE PROVISION AT ISSUE SECTION TWELVE TWO OF THE SECURITIES ACT OF NINETEEN THIRTY THREE BARS FALSE STATEMENTS OR OMISSIONS OF QUOTE MATERIAL FACTS QUOTE IN SECURITIES SALES INVOLVING QUOTE A PROSPECTUS OR ORAL COMMUNICATION QUOTE THE PROVISION IS A POTENT WEAPON BECAUSE UNLIKE ANOTHER MAJOR ANTIFRAUD PROVISION SECTION TEN B. OF THE NINETEEN THIRTY FOUR SECURITIES EXCHANGE ACT SECTION TWELVE TWO DOESN'T REQUIRE INVESTORS TO PROVE THAT THEY ACTUALLY RELIED ON FRAUDULENT STATEMENTS OR OMISSIONS IN DECIDING WHETHER TO BUY STOCK SECTION TWELVE TWO ALSO ALLOWS FOR BIGGER DAMAGE AWARDS CONFLICTING LOWER COURT RULINGS HAVE LED TO CONFUSION OVER WHETHER SECTION TWELVE TWO APPLIES TO SECURITIES TRANSACTIONS OTHER THAN INITIAL PUBLIC OFFERINGS THE JUSTICES ARE EXPECTED TO ANNOUNCE IN COMING WEEKS WHETHER THEY WILL CLARIFY THE CONFUSION BY HEARING ALLEN AND COMPANY'S APPEAL OF A RULING BY THE FEDERAL APPEALS COURT IN CHICAGO THE APPEALS COURT SAID THAT SECTION TWELVE TWO MAY BE APPLIED TO TRANSACTIONS OTHER THAN INITIAL OFFERINGS THE CASE BEGAN WHEN A UNIT OF PACIFIC DUNLOP SUED ALLEN AND COMPANY UNDER SECTION TWELVE TWO THE UNIT ALLEGED THAT THE INVESTMENT BANKING FIRM HAD SOLD PACIFIC DUNLOP STOCK IN A BATTERY MANUFACTURING COMPANY WITHOUT REVEALING THAT THE COMPANY FACED EXTENSIVE ENVIRONMENTAL CLAIMS A FEDERAL TRIAL JUDGE IN CHICAGO DISMISSED THE SUIT BUT THE APPEALS COURT REVERSED THAT RULING ALLEN AND COMPANY THEN APPEALED TO THE SUPREME COURT IF THE HIGH COURT AFFIRMS THE APPELLATE COURT'S BROAD INTERPRETATION OF SECTION TWELVE TWO IT WOULD GIVE PLAINTIFFS AN ADVANTAGE IN LAWSUITS ALLEGING DISHONESTY IN SECURITIES DEALS ALLEN AND COMPANY VERSUS PACIFIC DUNLOP HOLDINGS INCORPORATED SILICON VALLEY PUNDITS HAVE LONG PROPHESIED THAT DIGITAL ELECTRONICS WOULD ECLIPSE TRADITIONAL CONSUMER ELECTRONICS AND THEY MAY BE RIGHT THIS YEAR DESPITE A REVIVED ECONOMY SALES OF OLD LINE ELECTRONICS LIKE TELEVISION SETS AND STEREOS ARE EXPECTED TO SLOW SHARPLY AT ITS CONSUMER ELECTRONICS SHOW LAST WEEKEND IN LAS VEGAS THE ELECTRONIC INDUSTRIES ASSOCIATION FORECAST THAT U. S. GROWTH IN COLOR T. V. SALES WILL BE LESS THAN THREE PERCENT THIS YEAR DOWN FROM TEN PERCENT LAST YEAR GROWTH IN AUDIO SYSTEM SALES IS EXPECTED TO BE ONE POINT SEVEN PERCENT DOWN FROM SIX POINT FIVE PERCENT THE FORECAST DRAWN FROM A CONSENSUS OF MAJOR MANUFACTURERS IS FOR CONSUMER ELECTRONICS SALES IN THE U. S. TO RISE TO FORTY ONE POINT FOUR ONE BILLION DOLLARS OR FOUR POINT FOUR PERCENT FROM AN ESTIMATED THIRTY NINE POINT SIX SIX BILLION DOLLARS LAST YEAR WHICH WAS UP SIX POINT THREE PERCENT FROM NINETEEN NINETY TWO MANUFACTURERS EXPECT A SLOWDOWN IN PART BECAUSE CONSUMERS MAY FIND THEY HAVE LESS SPENDING MONEY AFTER THIS YEAR'S NEW TAX BITE MANUFACTURERS HOPE THEIR FORECAST WILL PROVE WRONG NOTING THEY HAVE UNDERESTIMATED SALES IN THE PAST BUT INDUSTRY ANALYSTS SAY CONVENTIONAL CONSUMER ELECTRONICS ARE OLD NEWS TELEVISION AND SOUND PRODUCTS WHICH ACCOUNT FOR TWO THIRDS OF CONSUMER ELECTRONICS SALES ARE IN SO MANY HOMES THAT WHEN MONEY IS TIGHT CONSUMERS WILL SPEND IT ELSEWHERE IN CONTRAST SALES OF CONSUMER COMPUTER PRODUCTS A RELATIVELY NEW CATEGORY IN CONSUMER ELECTRONICS ARE EXPECTED TO SOAR THIS YEAR WITH P. C.S IN FEWER THAN A THIRD OF AMERICAN HOMES THE ELECTRONIC INDUSTRIES ASSOCIATION FORECASTS HOME COMPUTER SALES WILL JUMP NEARLY TWELVE PERCENT TO FIVE POINT FOUR FOUR BILLION DOLLARS FROM FOUR POINT EIGHT SIX BILLION DOLLARS LAST YEAR WHEN SALES ROSE SEVEN POINT FOUR PERCENT AT THE LAS VEGAS SHOW SOME OF THE LARGEST CROWDS SWARMED AROUND COMPUTING SECTION BOOTHS EVEN AROUND THOSE WITH RELATIVELY MUNDANE TECHNOLOGY WHILE MANY BOOTHS WITH MORE CONVENTIONAL CONSUMER FARE DREW SPARSE TRAFFIC ONE ATTENTION GETTER WAS A PROGRAM FOR INTERNATIONAL BUSINESS MACHINES' VALUEPOINT COMPUTER THAT CAN TAKE VERBAL DICTATION THE SPEECH RECOGNITION TECHNOLOGY IS STILL PRIMITIVE THOUGH I. B. M. SAYS THE MACHINE CAN BOG DOWN IF THERE IS MUCH BACKGROUND NOISE LIKE THAT AT A TRADE SHOW CROWDS ALSO FLOCKED COMPAQ COMPUTER'S BOOTH WHERE THE COMPANY SHOWED ITS HOT SELLING LINE OF PRESARIO COMPUTERS INTRODUCED LAST SUMMER WITH AN ACTING ENSEMBLE PERFORMING TARZAN AND JANE SKITS TO THE THEME OF QUOTE IT'S A JUNGLE OUT THERE QUOTE REFERRING TO THE P. C. COMPETITION COMPAQ DEMONSTRATED SUCH PRESARIO FEATURES AS BUILT IN VOICE MAIL AND INTERNAL FAX ABILITY AS WELL AS MULTIMEDIA CAPABILITY TO PROVIDE FULL MOTION VIDEO AND SOUND ALSO DRAWING CROWDS WAS A PRODUCT CALLED EDGE SIXTEEN WHICH LETS TWO PEOPLE IN DIFFERENT CITIES PLAY A VIDEO GAME ON SEGA ENTERPRISES PLAYERS THE PRODUCT DEVELOPED BY SAN FRANCISCO BASED P. F. MAGIC WITH AMERICAN TELEPHONE AND TELEGRAPH AND AVAILABLE THIS FALL FOR UNDER ONE HUNDRED FIFTY DOLLARS USES NEW A. T. AND T. TECHNOLOGY IT LETS PLAYERS CONVERSE OVER THE PHONE LINE THE GAME COMPUTERS ARE USING SOFTWARE VENDORS LIKE MICROSOFT EAGER FOR A SHARE OF CONSUMERS' DISCRETIONARY DOLLARS WERE PROMOTING CHILDREN'S PROGRAMS AMONG THE FASTEST GROWING SOFTWARE MARKETS WORDPERFECT SHOWED NEW PROGRAMS LIKE KAP'N KARAOKE WHICH FEATURES SING ALONG TUNES FOR CHILDREN AND WALLOBEE JACK AN INTERACTIVE ADVENTURE CARTOON NEWCOMERS LIKE WORDPERFECT SEE CHILDREN AS A BIG FORCE BEHIND CONSUMERS' SHIFT TOWARD SPENDING ON COMPUTERS INSTEAD OF T. V. SETS I CALL IT THE TUG FACTOR KIDS WANT COMPUTERS SAYS A MARKETING DIRECTOR FOR WORDPERFECT WHICH SET UP SHOP AT THE CONSUMER SHOW FOR THE FIRST TIME THIS YEAR OLD LINE CONSUMER ELECTRONICS MAKERS DO HAVE A FEW TRICKS IN THEIR BAGS PANASONIC DISPLAYED A PORTABLE COMPACT DISK PLAYER WITH A THREE INCH VIDEO SCREEN FOR VIEWING MOVIES AND MUSIC VIDEOS THE VIDEO C. D. PLAYER SHOWN FOR THE FIRST TIME IN THE U. S. CAN PLAY DISKS HOLDING UP TO SEVENTY FOUR MINUTES OF PICTURES AND SOUND BUT PANASONIC OFFICIALS SHOWED ONLY A CRUDE PROTOTYPE THAT WAS SO UNRELIABLE IT FAILED TO SHOW A TRAILER TO THE FILM JURASSIC PARK DURING A PRESENTATION PANASONIC HOPES TO GET THE PLAYER TO THE U. S. MARKET BY NINETEEN NINETY FIVE SANYO FISHER DEMONSTRATED ITS NEW MINI C. D. PLAYERS FOR CARS THE PLAYERS WHICH ARE TO HIT THE U. S. MARKET THIS SUMMER AT AN UNDISCLOSED PRICE POP INTO THE DASHBOARD AND PLAY TWO AND ONE HALF INCH COMPACT DISKS RATHER THAN THE CONVENTIONAL FIVE INCH C. D.S PANASONIC ALSO DISPLAYED A STANDARD FOURTEEN INCH FLAT T. V. SET THAT IS LESS THAN FOUR INCHES DEEP INSTEAD OF FOURTEEN INCHES DEEP THE FLAT SETS INTRODUCED IN JAPAN LAST FALL FOR ABOUT THREE THOUSAND DOLLARS SHOULD BE POPULAR RETAIL BUYERS SAY BECAUSE THEY TAKE UP LESS SPACE PANASONIC EXPECTS TO SHIP THE SETS TO THE U. S. BY EARLY NEXT YEAR BUYERS SAY THEY SHOULD SELL WELL FOR UNDER TWO THOUSAND DOLLARS THE FABLED FIVE HUNDRED CHANNEL CABLE SYSTEM MAY BE SOME YEARS OFF BUT THOMSON CONSUMER ELECTRONICS IS OFFERING ONE HUNDRED FIFTY CHANNELS THROUGH SPACE ITS R. C. A. DIGITAL SATELLITE SYSTEM AN EIGHTEEN INCH DISH STARTING AT SIX HUNDRED NINETY NINE DOLLARS RETRIEVES T. V. CHANNELS FROM SATELLITES BUYERS SAY THE DISH SHOULD SELL WELL BECAUSE IT IS SO SMALL STILL DICK DICERCHIO EXECUTIVE VICE PRESIDENT OF PRICE COSTCO OBSERVED I STILL CAN'T FIGURE OUT HOW YOU INSTALL IT THOMSON ACKNOWLEDGING IT WOULD REQUIRE HANDYMAN SKILLS RECOMMENDED PROFESSIONAL INSTALLATION DIRECTOR STEVEN SPIELBERG ARRIVED AT THE SHOW WITH SIX BODYGUARDS TO PLAY THE VIDEOGAME VERSION OF HIS MOVIE QUOTE JURASSIC PARK QUOTE ON PLAYERS FROM NINTENDO SEGA AND THREE D. O. PLAYERS TELEVISIONS FINALLY UPSTAGED COMPUTERS DURING THE FOOTBALL PLAYOFF MATCH BETWEEN THE KANSAS CITY CHIEFS AND PITTSBURGH STEELERS AS LARGE CROWDS GATHERED AT PANELS OF T. V. SCREENS TO WATCH THE CHIEFS SNATCH A VICTORY PRECIOUS METALS PRICES ROSE ON POSITIVE RETAIL SALES FIGURES AND BROAD COMMODITY PRICE GAINS THAT FUELED INFLATION FEARS ANALYSTS SAID AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY CLIMBED THREE DOLLARS AND SEVENTY CENTS TO THREE HUNDRED NINETY DOLLARS AND SIXTY CENTS AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVER FUTURES CONTRACT WAS UP TEN POINT FIVE CENTS TO SETTLE AT FIVE POINT TWO OH FIVE DOLLARS AN OUNCE THE COMMERCE DEPARTMENT YESTERDAY REPORTED RETAIL SALES FOR DECEMBER UP ZERO POINT EIGHT PERCENT OR ROUGHLY DOUBLE THE LEVEL OF INCREASE THAT MOST ANALYSTS HAD EXPECTED QUOTE THAT GAVE A BOOST TO THE ENTIRE METALS COMPLEX QUOTE SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH MEANWHILE HUGE GAINS IN GRAIN FUTURES PRICES DROVE A SURGE IN THE COMMODITY RESEARCH BUREAU'S INDEX OF COMMODITY PRICES WHICH SETTLED AT TWO HUNDRED TWENTY SEVEN POINT NINE SEVEN UP TWO POINT FIVE FOUR FOR THE DAY STRENGTH IN THIS WIDELY WATCHED INDEX OFTEN IS INTERPRETED AS AN EARLY HINT OF AN UPTURN IN INFLATION ACCORDING TO SOME NEWS REPORTS AN ECONOMIC POLICY DOCUMENT OF THE AFRICAN NATIONAL CONGRESS HAS CALLED FOR REVERTING SOUTH AFRICA'S VAST MINERAL WEALTH TO NATIONAL CONTROL THE A. N. C. IS WIDELY EXPECTED TO WIN CONCLUSIVE VICTORIES WHEN BLACK SOUTH AFRICANS GO TO THE POLLS ON APRIL TWENTY SEVENTH TO ELECT A NEW GOVERNMENT SOUTH AFRICA IS THE SOURCE OF MUCH OF THE WORLD'S GOLD SUPPLY ANALYSTS ACKNOWLEDGED YESTERDAY THAT THE REPORTS ABOUT POSSIBLE NATIONALIZATION OF THE COUNTRY'S GOLD MINES MAY HAVE PRESSURED GOLD PRICES UPWARD BUT THEY SAID THE RALLY WAS DRIVEN PRIMARILY BY OTHER FACTORS NOBODY WAS TALKING ABOUT THIS A. N. C. THING IN THE MARKETS SAID BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INCORPORATED PROBABLY MORE INFLUENTIAL ON SILVER PRICES YESTERDAY WERE INDICATIONS THAT SUPPLIES OF SILVER ARE DECLINING IN COMEX APPROVED WAREHOUSES COMEX STOCKS WERE REPORTED TO HAVE DECLINED BY ONE POINT FOUR MILLION OUNCES ON WEDNESDAY AND FIVE HUNDRED THOUSAND YESTERDAY LEAVING STOCKS AT AN UNUSUALLY LOW TWO HUNDRED FIFTY SEVEN POINT THREE MILLION OUNCES THIS CONVEYS IDEAS THAT PHYSICAL DEMAND FOR SILVER IS PICKING UP MR. SAVAIKO SAID COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY HELPED DRIVE YESTERDAY'S RALLY IN PRECIOUS METALS MARKETS BUYING FUTURES CONTRACTS AS PRICES ROSE THROUGH SIGNIFICANT LEVELS THE RALLY WAS HIGHLY TECHNICAL IN NATURE MR. O'NEILL SAID WE HAD A SPURT OF BUYING THAT CAME INTO THE SILVER LATE IN THE DAY GRAINS AND SOYBEANS GRAIN FUTURES PRICES LEAPED HIGHER AS EXPECTED IN THE WAKE OF THE U. S. AGRICULTURE DEPARTMENT'S GLOOMY FINAL REPORT ON THE NINETEEN NINETY THREE TO NINETY FOUR U. S. CROP AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR MARCH DELIVERY WERE UP TWENTY FIVE POINT SEVEN FIVE CENTS TO SEVEN POINT ONE NINE FIVE DOLLARS A BUSHEL MARCH CORN ROSE FIVE POINT TWO FIVE CENTS TO THREE DOLLARS AND TEN CENTS A BUSHEL AND MARCH WHEAT CLIMBED FOUR POINT TWO FIVE CENTS TO THREE DOLLARS AND NINETY TWO CENTS A BUSHEL THE U. S. D. A. ESTIMATED LAST SUMMER'S GRAIN CROPS AT AN ANEMIC SIX POINT THREE FOUR BILLION BUSHELS OF CORN ONE POINT EIGHT BILLION BUSHELS OF SOYBEANS AND TWO POINT FOUR BILLION BUSHELS OF WHEAT IN THE NEXT FEW WEEKS TRADERS WILL MONITOR FEED USAGE OF GRAIN WHICH NEEDS TO DROP IN ORDER TO ENSURE THAT ENOUGH GRAIN IS LEFT FOR HUMAN CONSUMPTION ENERGY NEWS REPORTS THAT IRAQ CONTINUES TO REFUSE A UNITED NATIONS OFFER OF A ONE TIME SALE OF ONE POINT SIX BILLION DOLLARS OF OIL LIFTED FEBRUARY CRUDE OIL FUTURES PRICES BY EIGHTEEN CENTS A BARREL IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE FEBRUARY CRUDE SETTLED AT FOURTEEN DOLLARS AND FIFTY ONE CENTS A BARREL IRAQ HAS BEEN BANNED FROM WORLD OIL MARKETS SINCE IT INVADED KUWAIT IN AUGUST NINETEEN NINETY BUT THE U. N. HAS FOR SOME TIME HELD OUT THE POSSIBILITY OF A ONE TIME OIL SALE FOR HUMANITARIAN REASONS IRAQ GENERALLY HAS BEEN HOLDING OUT FOR SANCTIONS TO BE LIFTED COMPLETELY OIL MARKETS ALSO CONTINUED TO BE AFFECTED BY THE THREAT THAT M. G. CORPORATION A BIG FUTURES PLAYER WILL HAVE TO LIQUIDATE LARGE POSITIONS IF A BANK GROUP FAILS TO AGREE TO RESCUE M. G.'S PARENT METALLGESELLSCHAFT THE GERMAN COMPANY HAS SAID IT COULD LEARN THIS WEEKEND WHETHER IT HAS THE BANK GROUP'S AGREEMENT MEANWHILE U. S. DEPARTMENT OF ENERGY DATA ECHOED AN EARLIER BULLISH INDUSTRY REPORT ON CRUDE INVENTORIES MORGAN GRENFELL GROUP P. L. C.'S ASIAN SUBSIDIARY SAID IT LURED A SENIOR STOCK ANALYST FROM BARINGS P. L. C.'S BARING SECURITIES UNIT TO HEAD ITS REGIONAL SECURITIES OPERATIONS SIGNALING THAT THE HEATED GAME OF MUSICAL CHAIRS IN ASIA'S SECURITIES INDUSTRY CONTINUES MORGAN GRENFELL A UNIT OF DEUTSCHE BANK A. G. SAID STUART COOK THIRTY NINE YEARS OLD WILL JOIN THE MORGAN GRENFELL ASIA SECURITIES ARM OF MORGAN GRENFELL ASIA HOLDINGS ON JANUARY TWENTY FOURTH AS CHIEF EXECUTIVE OFFICER THE BRITISH MERCHANT BANK'S ASIAN OPERATIONS IN SINGAPORE INCLUDE INVESTMENT BANKING FUND MANAGEMENT AND SECURITIES RESEARCH AND TRADING MORGAN GRENFELL'S ASIAN SECURITIES OPERATION IS ACTIVE IN SIX MARKETS SINGAPORE HONG KONG MALAYSIA INDONESIA THAILAND AND THE PHILIPPINES THE SECURITIES OPERATION HAS SALES TEAMS IN ASIA AND NEW YORK AND IS SETTING UP AN ASIAN SALES TEAM IN LONDON COLIN BERRY CHIEF EXECUTIVE OF MORGAN GRENFELL ASIA HOLDINGS SAID MR. COOK QUOTE WILL BE RESPONSIBLE FOR ALL SECURITIES OPERATIONS QUOTE AT MORGAN GRENFELL ASIA MR. COOK SAID HE WAS ATTRACTED TO MORGAN GRENFELL BY THE OPPORTUNITY TO TAKE ON BROADER RESPONSIBILITIES AND THE CHANCE TO HELP BUILD MORGAN GRENFELL'S ASIAN SECURITIES BUSINESS I DIDN'T THINK THERE WAS ANY PLACE TO GO AT BARINGS MR. COOK SAID NOTING THAT BARINGS WAS ALREADY RANKED NUMBER ONE IN THE REGION MR. COOK WAS ASIAN REGIONAL RESEARCH DIRECTOR AT BARING SECURITIES IN HONG KONG BARING SECURITIES RANKED NUMBER ONE OVERALL IN NINETEEN NINETY THREE FOR THE THIRD CONSECUTIVE YEAR AMONG ASIAN STOCK BROKERAGE FIRMS IN ASIAMONEY MAGAZINE'S ANNUAL POLL OF INSTITUTIONAL INVESTORS MR. COOK DECLINED TO COMMENT IN DETAIL ON HIS SALARY AT MORGAN GRENFELL I THINK IT'S A VERY REASONABLE PACKAGE HE SAID MORGAN GRENFELL IS WELL ESTABLISHED IN SINGAPORE AND HAS BEEN EXPANDING IN HONG KONG BUT IT ISN'T AS BIG A PLAYER ACROSS THE REGION AS SOME OTHER FIRMS INCLUDING BARING SECURITIES AS A MINOR EDUCATIONAL CORRECTION BY PLAYERS SIX FEET SIX PUT ALL YOUR FAITH IN APPEARANCES AND YOU'LL SOMEDAY FIND YOUR WORLD IS COMING APART AT THE SEAMS DESPITE MONTHS OF LITIGATION AND A BARRAGE OF DAMAGING HEADLINES ABOUT ITS BROKERAGE ARM FINANCIAL EXPERTS SAY PRUDENTIAL INSURANCE COMPANY OF AMERICA ONE OF THE LARGEST FINANCIAL INSTITUTIONS IN THE COUNTRY IS STRONG ENOUGH TO ABSORB THE DRUBBING ANALYSTS SAY THAT ON A PURELY FINANCIAL BASIS IT'S HARD TO CONCEIVE OF A SCENARIO RELATED TO THE CONTINUING SCANDAL AT PRUDENTIAL SECURITIES INCORPORATED THAT WOULD TOPPLE PRUDENTIAL INSURANCE THE COMPANY IS SIMPLY TOO STRONG AND TOO IMPORTANT PRUDENTIAL INSURANCE HAS TWO HUNDRED BILLION DOLLARS IN ASSETS AND ANNUAL REVENUE OF ABOUT FORTY FIVE BILLION DOLLARS OF WHICH PRUDENTIAL SECURITIES ACCOUNTS FOR ABOUT EIGHT PERCENT IT HAS CAPITAL AS MEASURED BY INSURANCE REGULATORS OF NEARLY THIRTEEN BILLION DOLLARS IN THE INSURANCE WORLD ONLY THE ARGUABLY OVERCAPITALIZED STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY HAS MORE AS FOR EARNINGS THE COMPANY A MUTUAL INSURER THAT IS OWNED BY ITS POLICYHOLDERS RATHER THAN STOCKHOLDERS MADE ABOUT ONE BILLION DOLLARS LAST YEAR SAID PRUDENTIAL INSURANCE CHIEF FINANCIAL OFFICER EUGENE O'HARA DESPITE NEWS REPORTS ABOUT POSSIBLE FRAUD AT PRUDENTIAL SECURITIES LIFE INSURANCE SALES AT PRUDENTIAL INSURANCE ROSE TWENTY SIX PERCENT LAST YEAR AND ANNUITY SALES ROSE SEVENTEEN PERCENT THE COMPANY SAYS OF COURSE THE MAJOR RATINGS AGENCIES ARE KEEPING A CLOSE WATCH ON DEVELOPMENTS AT PRUDENTIAL SECURITIES AND TRYING TO ASSESS HOW THEY WILL AFFECT THE INSURANCE COMPANY A. M. BEST COMPANY HAS PUT PRUDENTIAL INSURANCE'S RATING ON REVIEW PARTLY BECAUSE OF THE SCANDAL THE AGENCY NOW RATES PRUDENTIAL DOUBLE A PLUS ITS HIGHEST RATING BUT IS TRYING TO DETERMINE WHAT EFFECT THE CONTINUING LEGAL ACTIONS AND NEGATIVE PUBLICITY WILL HAVE QUOTE ON FUTURE MARKETING ACTIVITIES AND EXISTING BUSINESS QUOTE MOODY'S INVESTORS SERVICE INCORPORATED SAYS THAT IT IS WATCHING THE REPERCUSSIONS AND THAT IT LIKE PRUDENTIAL INSURANCE ITSELF IS ALSO REVIEWING MONTHLY SALES FIGURES MOODY'S NOW RATES PRUDENTIAL DOUBLE A TWO ONE OF ITS HIGHEST RATINGS VIRTUALLY ALL PARTS OF THE COMPANY HAD THE BEST YEAR THEY'VE EVER HAD SAID MOODY'S ANALYST ROBERT RIEGEL HE SAID THE TOTAL LOSSES FOR PRUDENTIAL SECURITIES NOW ABOUT EIGHT HUNDRED MILLION DOLLARS WOULD HAVE TO GO CONSIDERABLY HIGHER BEFORE MOODY'S EVEN CONSIDERED LOWERING ITS RATING IN ANY EVENT PRUDENTIAL INSURANCE CUSTOMERS INTERVIEWED FOR THIS ARTICLE SAY THEY AREN'T WORRIED FOR EXAMPLE SUZANNE BOWMAN INSURANCE ADMINISTRATOR FOR THE AMERICAN ASSOCIATION OF RETIRED PERSONS ONE OF PRUDENTIAL'S LARGEST HEALTH INSURANCE CLIENTS SAYS SHE IS MORE INTERESTED IN THE INSURER'S FINANCIAL STRENGTH AND ITS ABILITY TO SERVICE CLAIMS I'VE HAD ONLY ONE CLIENT WHO WAS ACTUALLY INFLUENCED BY THIS SAID MURRAY BECKER A TEANECK N. J. CONSULTANT WHO ADVISES INVESTORS ON GUARANTEED INVESTMENT CONTRACTS BECAUSE OF PRUDENTIAL INSURANCE'S EARNINGS POWER AS WELL AS THE EARNINGS POWER OF PRUDENTIAL SECURITIES ITSELF THE FINANCIAL IMPACT OF THE AFFAIR ON THE INSURANCE COMPANY HAS SO FAR BEEN NEGLIGIBLE INDEED THE BROKERAGE UNIT HAS FOOTED THE BILL ITSELF IN NINETEEN NINETY ONE PRUDENTIAL INSURANCE PUMPED TWO HUNDRED FIFTEEN MILLION DOLLARS INTO PRUDENTIAL SECURITIES TO HELP SETTLE INVESTOR CLAIMS BUT PRUDENTIAL SECURITIES PAID IT BACK THREE MONTHS LATER IN THE FORM OF A DIVIDEND MR. O'HARA SAID LAST YEAR PRUDENTIAL SECURITIES AGREED TO SETTLE STATE AND FEDERAL SECURITIES LAW VIOLATIONS BY PAYING THREE HUNDRED SEVENTY ONE MILLION DOLLARS THE SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AND STATE REGULATORS CALLED FOR MOST OF THE MONEY TO GO TO INVESTORS AGAIN PRUDENTIAL SECURITIES PAID THE BILL ITSELF PRUDENTIAL SECURITIES SHOULD HAVE RESOURCES TO MEET NEW OBLIGATIONS DESPITE LOSSES TO SETTLE FRAUD ALLEGATIONS PRUDENTIAL SECURITIES SAID YESTERDAY THAT IT EARNED ONE HUNDRED FORTY FIVE MILLION DOLLARS IN NINETEEN NINETY THREE OF COURSE MATTERS COULD ALWAYS GET WORSE FOR PRUDENTIAL INSURANCE FOR ONE THING LAST YEAR'S AGREEMENT WITH SECURITIES REGULATORS IS OPEN ENDED IF INVESTORS PROVE THEY DESERVE MORE MONEY COURTS COULD FORCE PRUDENTIAL SECURITIES TO ANTE UP AGAIN AND IF THE SECURITIES FIRM DIDN'T HAVE THE MONEY IT COULD TURN TO PRUDENTIAL INSURANCE FOR AN INVESTMENT BUT ANY INFUSIONS FROM THE INSURANCE COMPANY WOULD BE VOLUNTARY PRUDENTIAL INSURANCE IS TECHNICALLY SHIELDED FROM LIABILITY BECAUSE IT OWNS PRUDENTIAL SECURITIES AS A STOCKHOLDER ALBEIT THE ONLY ONE IF THE LOSSES AT PRUDENTIAL SECURITIES EVER BECAME OVERWHELMING PRUDENTIAL INSURANCE COULD SIMPLY REFUSE TO MAKE A CAPITAL INVESTMENT AND LET THE BROKERAGE UNIT FAIL TO GET AT THE DEEP POCKETS OF PRUDENTIAL INSURANCE INVESTORS WOULD HAVE TO PROVE THE INSURANCE COMPANY NOT JUST ITS BROKERAGE HOUSE PARTICIPATED IN FRAUD PLAINTIFF LAWYERS HAVE TURNED UP ONLY THE SCANTIEST EVIDENCE OF THAT SHOULD WORSE COME TO WORST AND PRUDENTIAL SECURITIES FAIL EVEN THAT WOULDN'T BRING DOWN PRUDENTIAL INSURANCE EXPERTS SAY IT WOULD BE AN EMBARRASSMENT FOR PRUDENTIAL INSURANCE BUT ONE IT COULD SURVIVE THE INSURER PAID ABOUT THREE HUNDRED EIGHTY FIVE MILLION DOLLARS WHEN IT BOUGHT THE BROKERAGE HOUSE IN NINETEEN EIGHTY ONE THE COMPANY NOW VALUES ITS INVESTMENT IN THE UNIT AT EIGHT HUNDRED FIFTY MILLION DOLLARS WRITING OFF THE ENTIRE AMOUNT WOULD EQUAL LESS THAN A YEAR'S PROFIT PRUDENTIAL INSURANCE HAS SURVIVED WORSE IN NINETEEN NINETY TWO THE COMPANY LOST NINE HUNDRED FORTY MILLION DOLLARS ON HURRICANE ANDREW AND STILL MADE MONEY FOR THE YEAR A FINAL QUESTION HANGING OVER PRUDENTIAL INSURANCE HOWEVER IS WHAT HAPPENS IF THE COMPANY IS NAMED IN A CRIMINAL INDICTMENT THE U. S. ATTORNEY'S OFFICE IN MANHATTAN IS INVESTIGATING NOT ONLY PRUDENTIAL SECURITIES BUT ALSO THE ROLE IN THE AFFAIR PLAYED BY THE INSURANCE COMPANY ALTHOUGH PRUDENTIAL INSURANCE AND PRUDENTIAL SECURITIES DISCOUNT THE LIKELIHOOD OF AN INDICTMENT IF IT WERE TO HAPPEN STATE REGULATORS COULD SUSPEND OR EVEN REVOKE THE COMPANY'S ABILITY TO SELL INSURANCE AN EVENT THAT COULD PUT PRUDENTIAL INSURANCE OUT OF BUSINESS BUT REGULATORS ARE UNLIKELY TO TAKE SUCH HARSH ACTION BECAUSE THEY HAVE THEIR OWN INTERESTS IN KEEPING PRUDENTIAL INSURANCE ALIVE NOT ONLY WOULD A FAILURE OF THE INSURER PUT ONE HUNDRED TWO THOUSAND EMPLOYEES ON THE STREET BUT IT WOULD DISRUPT THE LIVES OF THE COMPANY'S FIFTY MILLION CUSTOMERS ONE IN FIVE AMERICANS INSURANCE REGULATORS ARE INTERESTED NINETY NINE PERCENT IN INSURANCE COMPANY SOLVENCY AND ONLY ONE PERCENT IN INSURANCE COMPANY INTEGRITY SAID EUGENE ANDERSON AN INSURANCE ATTORNEY WITH ANDERSON KILL OLICK AND OLSHINKY SO SAYS TED LEVINE ONCE THE NUMBER TWO ENFORCER AT THE SECURITIES AND EXCHANGE COMMISSION AND NOW THE TOP LAWYER INSIDE PAINEWEBBER GROUP INCORPORATED MR. LEVINE IS ONE OF A NEW BREED OF LAWYER SIGNING UP AT WALL STREET FIRMS AS CONTINUING SCANDALS AND REGULATORY CRACKDOWNS FORCE THE INDUSTRY TO RECOGNIZE THAT IT NEEDS TO POLICE ITSELF BETTER IN THE SIX MONTHS SINCE HIS ARRIVAL IN PAINEWEBBER'S EXECUTIVE OFFICES MR. LEVINE ALREADY HAS IMPLEMENTED A SERIES OF MEASURES DESIGNED TO KEEP THE BIG BROKERAGE HOUSE HIT SOMEWHAT WORSE THAN COMPETITORS BY RECENT CUSTOMER LAWSUITS OUT OF FURTHER TROUBLE AMONG HIS BIGGEST CHANGES SO FAR ESTABLISHING A DISPUTE RESOLUTION SYSTEM TO SETTLE TOUGH CASES EARLY AND PLACING THE LEGAL DEPARTMENT IN CHARGE OF THE EMPLOYEE GROUP THAT HANDLES SALES PRACTICE COMPLAINTS IN THE PAST THE COMPLAINT STAFF CONSULTED WITH LAWYERS ONLY ON AN AD HOC BASIS TO MAKE THE NEW SYSTEM WORK MR. LEVINE HAS SOUGHT AND RECEIVED AUTHORIZATION TO ADD AS MANY AS TWENTY LAWYERS TO HIS STAFF WHICH CURRENTLY NUMBERS ABOUT FORTY HE ALSO IS PLANNING TO ESTABLISH A CONFIDENTIAL HOT LINE TO THE LEGAL DEPARTMENT FOR EMPLOYEES WHO SEEK TO REPORT SUSPICIOUS ACTIVITY SECURITIES FIRMS ROUTINELY ARE SUED BY CUSTOMERS WITH COMPLAINTS OF VARYING MERIT AND SERIOUSNESS MR. LEVINE'S GOAL IS AN ENVIRONMENT IN WHICH ANY WRONGED CUSTOMERS ARE READILY COMPENSATED THIS APPROACH HE HOPES WILL CUT THE NUMBER OF PAINEWEBBER CASES GOING TO ARBITRATION BY ROUGHLY THIRTY PERCENT OVER THE NEXT YEAR AND REDUCE LONG TERM LEGAL COSTS THE MOVES MARK A BOLD DEPARTURE FROM THE TRADITIONAL IMAGE OF A BROKERAGE FIRM'S TOP LEGAL OFFICER AS A MOSTLY PASSIVE CLERK AT WORST WALL STREET'S IN HOUSE LAWYERS HAVE BEEN WATER CARRIERS FOR MANAGEMENT RATHER THAN DEFENDERS OF THEIR TRUE CLIENT THE FIRMS THEMSELVES AT BEST THEY HAVE BEEN WELL MEANING BUT GENERALLY POWERLESS FUNCTIONARIES BROUGHT INTO THE LOOP ONLY AFTER A CRISIS HAS DEVELOPED TYPICALLY SECURITIES INDUSTRY STAFF LAWYERS HAVE COME UP THROUGH COMPANY RANKS WHICH CAN GIVE THEM A PROVINCIAL OUTLOOK BY CONTRAST THE FORTY NINE YEAR OLD MR. LEVINE HAS BEEN SOMETHING OF A WORLD CITIZEN AS LEAST AS FAR AS SECURITIES ARE CONCERNED AFTER DEPARTING HIS POST AS ASSOCIATE DIRECTOR OF THE S. E. C.'S ENFORCEMENT DIVISION IN NINETEEN EIGHTY FOUR HE SPENT NEARLY A DECADE AS A PARTNER AT THE ELITE WASHINGTON LAW FIRM WILMER CUTLER AND PICKERING IN ADDITION TO NEARLY ALL OF THE BIGGEST BROKERAGE HOUSES BUT NOT PAINEWEBBER AS IT HAPPENS HIS CLIENTS INCLUDED IVAN BOESKY MR. LEVINE'S ARRIVAL AT PAINEWEBBER COMES AS THE SECURITIES INDUSTRY IS EXPERIENCING GROWTH ON THE BOTTOM LINE BUT TURMOIL IN THE EXECUTIVE SUITE AND ESPECIALLY IN THE LAW DEPARTMENT JUST OVER A YEAR AGO THE S. E. C.'S REPORT ON THE SALOMON INCORPORATED TREASURY AUCTION SCANDAL SOUNDED A WAKE UP CALL TO IN HOUSE ATTORNEYS AMONG OTHER THINGS THE REPORT SINGLED OUT DONALD M. FEUERSTEIN SALOMON'S CHIEF LEGAL COUNSEL FOR FAILING TO ORDER AN INTERNAL INVESTIGATION INTO THE FIRM'S SUBMISSION OF FALSE TREASURY BIDS MR. FEUERSTEIN FORCED TO RESIGN AFTER THE NINETEEN NINETY ONE SCANDAL FACED NO LEGAL ACTION BY THE AGENCY AND IN A SUDDEN SHIFT TWO WEEKS AGO PRUDENTIAL SECURITIES INCORPORATED RELIEVED ITS GENERAL COUNSEL LOREN SCHECHTER OF HIS LEGAL DUTIES CIVIL AND CRIMINAL AUTHORITIES ARE INVESTIGATING WHAT ROLE THE FIRM'S LEGAL DEPARTMENT PLAYED IN REVIEWING AND APPROVING DOCUMENTS USED IN SELLING LIMITED PARTNERSHIPS PEOPLE FAMILIAR WITH THE SITUATION SAY THE S. E. C. IS LOOKING INTO WHETHER PRUDENTIAL MISLED INVESTORS ABOUT THE RISKS AND RETURNS ON EIGHT BILLION DOLLARS OF THE PARTNERSHIPS IN THE NINETEEN EIGHTIES BOTH FIRMS HAVE REACHED OUTSIDE OF WALL STREET IN THEIR SEARCH FOR NEW LEGAL OFFICERS SALOMON PICKED ROBERT MUNDHEIM FORMERLY CO CHAIRMAN OF FRIED FRANK HARRIS SHRIVER AND JACOBSON AND BRIEFLY A SPECIAL COUNSEL TO THE S. E. C. PRUDENTIAL TEMPORARILY FILLED ITS VACANCY WITH LEE SPENCER WHO LIKE MR. LEVINE IS A FORMER S. E. C. OFFICIAL WHO HAS RECENTLY PRACTICED IN A LAW FIRM MR. LEVINE IS KNOWN NOT ONLY FOR DEFENDING HIS BROKERAGE FIRM CLIENTS IN ADVERSARY SETTINGS BUT ALSO FOR COUNSELING THEM ON HOW TO AVOID PROBLEMS SOME CRITICS SAY HE CAN BE AGGRESSIVE AND EVEN ABRASIVE BUT OTHERS SEE HIS BULLDOG TENACITY AS A VIRTUE WILLIAM MCLUCAS CHIEF OF THE S. E. C.'S ENFORCEMENT DIVISION SAYS MR. LEVINE IS CONSIDERED QUOTE TOUGH COMPETITION QUOTE BY THOSE AT THE AGENCY AND HARVEY PITT A LEADING MEMBER OF THE SECURITIES BAR AND A PARTNER AT FRIED FRANK SAYS MR. LEVINE HAS MORE PRACTICAL SKILLS IN DEALING WITH THE SECURITIES INDUSTRY THAN ANY OTHER LAWYER HE WILL NEED THEM ABOUT TWO YEARS AGO PAINEWEBBER BEGAN DEVELOPING A REPUTATION FOR HAVING MESSIER SALES PRACTICES THAN MANY OTHER FIRMS ACCORDING TO THE SECURITIES ARBITRATION COMMENTATOR A NEWSLETTER THAT TRACKS CASES AGAINST BROKER DEALERS PAINEWEBBER LOST SIXTY ONE PERCENT OF CUSTOMER DISPUTE ARBITRATIONS IN THE FIRST HALF OF NINETEEN NINETY TWO THE WORST OF ANY TOP TEN BROKERAGE HOUSE A SERIES OF HIGH PROFILE DISPUTES WITH CUSTOMERS THEN TOOK A FINANCIAL AND PUBLIC RELATIONS TOLL FROM JULY NINETEEN NINETY TWO TO JULY NINETEEN NINETY THREE PAINEWEBBER WAS ORDERED TO PAY A TOTAL OF SIXTEEN POINT FOUR MILLION DOLLARS IN ITS FOUR LARGEST ARBITRATION AWARDS ALONE REPORTEDLY MORE THAN ANY OTHER TOP TEN FIRM WAS ORDERED TO PAY IN TOTAL ARBITRATION AWARDS DURING THE SAME PERIOD IN PART PAINEWEBBER'S TROUBLE MAY HAVE BEEN THAT IT PURSUED MORE HARD TO DEFEND CASES TO ARBITRATION INSTEAD OF SETTLING BEFOREHAND THE FIRM'S CHAIRMAN AND CHIEF EXECUTIVE DONALD MARRON WAS SAID TO HATE GIVING UP WITHOUT A FIGHT BUT MR. MARRON PRIVATELY HAS TOLD COLLEAGUES HE WANTS TO CUT THE FIRM'S DOCKET OF CUSTOMER ARBITRATIONS AT DINNER ABOUT A YEAR AGO MR. MARRON'S FRIEND MARTIN LIPTON THE TAKEOVER LAWYER SUGGESTED THE EXECUTIVE CALL ON MR. LEVINE THE MANDATE WAS CLEAR MR. LEVINE SAYS WE WANT TO HAVE THE BEST LEGAL AND COMPLIANCE SYSTEM ON WALL STREET REUTERS HOLDINGS P. L. C. IS MOVING TO EXPAND DRAMATICALLY IN THE U. S. WITH ITS AGREEMENT IN PRINCIPLE TO ACQUIRE QUOTRON'S ELECTRONIC STOCK PRICE DATA BUSINESS FROM CITICORP REUTERS WHICH SELLS ELECTRONIC NEWS AND FINANCIAL TRADING SERVICES IS ALREADY THE LARGEST GLOBAL PROVIDER OF FOREIGN EXCHANGE DATA AND AUTOMATED CURRENCY DEALING THE QUOTRON ACQUISITION WOULD MAKE IT THE WORLD'S LEADER IN PROVIDING STOCK PRICE DATA AS WELL ANALYSTS SAY AND COULD PUT PRESSURE ON REUTERS RIVALS IN THE ELECTRONIC FINANCIAL INFORMATION BUSINESS ALTHOUGH QUOTRON HAS LONG BEEN A FINANCIAL HEADACHE FOR CITICORP WHICH HAS BEEN SEEKING TO SELL IT THE BUSINESS WILL STRENGTHEN LONDON BASED REUTERS IN A REGION WHERE IT HAS TRADITIONALLY BEEN WEAK QUOTE THIS ACQUISITION LOOKS SET TO TURN REUTERS FROM AN ALSO RAN IN THE U. S. TO A CLEAR MARKET LEADER QUOTE IN STOCK PRICE DATA SAID ALISTAIR SMELLIE AN ANALYST AT LEHMAN BROTHERS INTERNATIONAL LIMITED IN LONDON THEY'VE LONG TARGETED THE U. S. EQUITY MARKET FOR GROWTH AND NOW THEY'VE FINALLY DONE SOMETHING DEFINITIVE ABOUT IT ALTHOUGH CITICORP AND REUTERS WOULD NOT DISCLOSE THE PRICE REUTERS WILL PAY FOR QUOTRON'S MARKET DATA SERVICES IT IS BELIEVED TO BE MINIMAL IN FACT REUTERS SAID CITICORP WOULD PAY FOR CERTAIN OPERATING COSTS ASSOCIATED WITH CLOSING THE DEAL CITICORP HAS BEEN TRYING FOR SOME TIME TO SELL QUOTRON WHICH HAS ABOUT FORTY FIVE THOUSAND INFORMATION SCREENS IN THE U. S. DESPITE ITS WELL KNOWN NAME IN THE SECURITIES INDUSTRY QUOTRON HAS BEEN AN ALBATROSS SINCE CITICORP BOUGHT IT WITH MUCH FANFARE IN NINETEEN EIGHTY SIX FOR ABOUT SIX HUNDRED THIRTY MILLION DOLLARS IT WAS A COMPONENT OF CHAIRMAN JOHN S. REED'S PLAN TO TURN CITICORP INTO A FULL SERVICE GLOBAL FINANCIAL SERVICES COMPANY A PLAN LONG SINCE JETTISONED A QUOTRON SPOKESMAN ACKNOWLEDGED THAT THE BUSINESS HAS BEEN LOSING MARKET SHARE IN THE PAST TWO TO THREE YEARS BUT HE WOULDN'T GIVE DETAILS THE PRESENCE OF REUTERS SEEMS LIKELY TO REASSURE CURRENT CUSTOMERS FUNDAMENTALLY IT MAKES QUOTRON STRONG AGAIN SAID DAVID LONGOBARDI AN EXECUTIVE EDITOR OF INSIDE MARKET DATA A NEW YORK NEWSLETTER COVERING THE MARKET DATA INDUSTRY IT GIVES THEM A DEEP POCKETED PARENT THE DEAL WHICH IS SUBJECT TO REGULATORY APPROVAL AND THE SIGNING OF A DEFINITIVE AGREEMENT WOULD INCREASE REUTERS'S SHARE OF U. S. MARKET FOR STOCK PRICE DATA TO ABOUT THIRTY PERCENT FROM ONLY THREE PERCENT THE PURCHASE WOULD ALSO GIVE REUTERS THE TOP POSITION GLOBALLY IN STOCK PRICE DATA WITH ABOUT ONE QUARTER OF THE MARKET AHEAD OF AUTOMATIC DATA PROCESSING INCORPORATED ROSELAND N. J. WHICH HAS AN ESTIMATED TWENTY PERCENT SHARE ANALYSTS SPECULATED THAT REUTERS COULD USE QUOTRON TO SELL ITS OTHER INFORMATION AND AUTOMATED TRADING SERVICES TO U. S. STOCK BROKERAGE FIRMS A MARKET IT HASN'T PENETRATED AS MUCH AS IT WOULD LIKE ERIC PHILO AN ANALYST WITH GOLDMAN SACHS AND COMPANY IN NEW YORK SAID THE OTHER PLAYERS IN THE MARKET MUST BE WATCHING THIS DEAL VERY CLOSELY ESPECIALLY A. D. P. ONE OF THE BIGGEST COMPETITORS THIS IS ALREADY A MATURE COMPETITIVE BUSINESS AND THIS WILL MAKE IT TOUGHER YET QUOTE MR. PHILO SAID HE BELIEVES A. D. P. CURRENTLY HAS OPERATING MARGINS OF ABOUT SIX PERCENT OR SEVEN PERCENT LESS AFFECTED ANALYSTS SAY WILL BE SUCH FINANCIAL INFORMATION PROVIDERS AS BLOOMBERG L. P.'S BLOOMBERG FINANCIAL MARKETS AND DOW JONES AND COMPANY'S TELERATE BLOOMBERG'S TERMINALS PROVIDE NOT ONLY RAW QUOTES BUT ALSO INTERPRETATIONS AND NEWS WHILE TELERATE IS A MUCH BIGGER SUPPLIER OF BOND MARKET INFORMATION THAN STOCK DATA BLOOMBERG EXECUTIVES DECLINED TO COMMENT ON THE REUTERS QUOTRON DEAL A SPOKESMAN FOR DOW JONES SAID WE AREN'T IN THIS BUSINESS OF SELLING EQUITIES QUOTES TO THE BROKERAGE INDUSTRY AND WE WEREN'T INTERESTED IN BUYING QUOTRON WHICH WAS SHOPPED TO US AND EVERYBODY ELSE FOR A LONG TIME DOW JONES ALSO PUBLISHES THE WALL STREET JOURNAL AND BARRON'S QUOTRON WAS A CLEAR LEADER IN THIS BUSINESS JUST A FEW YEARS BACK BUT WE'VE PASSED THEM TO BECOME THE MARKET LEADER SAID ARTHUR WEINBACH EXECUTIVE VICE PRESIDENT OF A. D. P. WE WERE THE FIRST TO ADD INTELLIGENT WORKSTATIONS TERMINALS THAT DO EVERYTHING A P. C. DOES WHEN QUOTRON WAS STILL SELLING DUMB TERMINALS THAT ONLY LIST STOCK QUOTES WE BELIEVE WE ARE STILL MORE SOPHISTICATED AND OUR SERVICE IS BETTER HE ADDED A. D. P. WHICH ALSO IS A MAJOR PLAYER IN THE MARKET FOR BUSINESS PAYROLL SERVICES SAYS IT HAS ABOUT EIGHTY FOUR THOUSAND TERMINALS INSTALLED IN BROKERAGE HOUSES MR. PHILO THE GOLDMAN SACHS ANALYST ESTIMATES THAT SOME ONE HUNDRED EIGHTY THOUSAND SUCH TERMINALS ARE CURRENTLY INSTALLED IN THE U. S. MARKET OVERALL INCLUDING BROKERAGE HOUSES CHRIS MUNRO AN ANALYST AT HOARE GOVETT INVESTMENT RESEARCH LIMITED SAID THE QUOTRON ACQUISITION SHOULD HELP REUTERS FURTHER PENETRATE THE MARKET FOR AUTOMATED EQUITIES DEALING THROUGH ITS INSTINET SUBSIDIARY WHICH SERVES INSTITUTIONAL INVESTORS INSTINET WAS BOUGHT BY REUTERS IN NINETEEN EIGHTY SIX AND REPORTED REVENUE OF SEVENTY THREE POINT ONE MILLION DOLLARS FOR THE FIRST HALF OF NINETEEN NINETY THREE COMPARED WITH FORTY TWO MILLION DOLLARS A YEAR EARLIER THE REUTERS MOVE WAS MADE THROUGH THE COMPANY'S WHOLLY OWNED REUTERS AMERICA HOLDINGS INCORPORATED UNIT A REUTERS SPOKESMAN DECLINED TO DISCUSS THE COMPANY'S STRATEGY FOR THE QUOTRON BUSINESS UNTIL THE DEAL IS FINAL IN TRADING IN LONDON REUTERS SHARES CLOSED AT EIGHTEEN POUNDS AND FIFTY FIVE PENCE TWENTY SEVEN DOLLARS AND EIGHTY NINE CENTS UP THIRTY PENCE THE SALE DOESN'T INCLUDE QUOTRON'S FOREIGN EXCHANGE BUSINESS KNOW AS F. X. TRADER WHICH CITICORP SAID IT WILL RETAIN A. D. P. ACQUIRED QUOTRON'S INTERNATIONAL EQUITIES BUSINESS IN EUROPE AND THE FAR EAST AND ITS SECURITIES INDUSTRY SOFTWARE CORPORATION UNIT A YEAR AGO REUTERS HAS BEEN CASH RICH FOR THE PAST SEVERAL YEARS AT THE END OF JULY IT REPURCHASED FIVE POINT EIGHT FOUR PERCENT OF ITS SHARES USING ABOUT HALF THE ROUGHLY SEVEN HUNDRED MILLION POUNDS ONE POINT OH FIVE BILLION DOLLARS IT HAD IN SURPLUS CASH DRIVEN BY TREMENDOUS GROWTH IN ITS UNDERWRITING BUSINESS BEAR STEARNS COMPANIES' FISCAL SECOND QUARTER EARNINGS MORE THAN DOUBLED FOR THE QUARTER ENDED DECEMBER THIRTY FIRST THE PARENT OF BROKERAGE FIRM BEAR STEARNS AND COMPANY REPORTED NET INCOME OF ONE HUNDRED THIRTY FOUR POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND FIVE CENTS A SHARE UP FROM SIXTY FOUR POINT THREE MILLION DOLLARS OR FIFTY TWO CENTS A SHARE A YEAR EARLIER REVENUE ROSE FIFTY EIGHT PERCENT TO ONE BILLION DOLLARS FROM SIX HUNDRED THIRTY TWO POINT SIX MILLION DOLLARS BEAR STEARNS'S SECOND QUARTER PERFORMANCE OUTSTRIPPED THE AVERAGE ANALYST'S ESTIMATE OF ABOUT SEVENTY EIGHT CENTS A SHARE INDICATING THAT THE THREE YEAR OLD BROKERAGE INDUSTRY EARNINGS BINGE ISN'T OVER YET BEAR STEARNS BOLSTERED THAT POINT BY SHOWING STRONG GAINS AGAINST ITS MOST RECENT QUARTER IN THE FISCAL FIRST QUARTER ENDED SEPTEMBER THIRTIETH THE COMPANY HAD NET INCOME OF ONE HUNDRED FOUR POINT THREE MILLION DOLLARS OR EIGHTY ONE CENTS A SHARE ON REVENUE OF SEVEN HUNDRED SEVENTY ONE POINT SEVEN MILLION DOLLARS BEAR STEARNS'S STRONGEST SECOND QUARTER GAINS CAME IN INVESTMENT BANKING WHERE REVENUE SURGED BY ONE HUNDRED EIGHTY PERCENT ANALYSTS SAID MORE THAN EIGHTY PERCENT OF THE INVESTMENT BANKING REVENUE STEMMED FROM A FLURRY OF DEBT AND EQUITY OFFERINGS QUOTE THEIR UNDERWRITING PERFORMANCE WAS STRONG BUT MORE IMPORTANTLY THEY ARE ALSO GAINING MARKET SHARE IN THAT AREA QUOTE SAID JOAN S. SOLOTAR A DONALDSON LUFKIN AND JENRETTE ANALYST BEAR STEARNS REPORTED REVENUE GAINS FROM MOST BUSINESS AREAS IN THE LATEST QUARTER WITH REVENUE FROM TRADING ACTIVITY RISING FIFTY EIGHT PERCENT FROM A YEAR EARLIER THE COMPANY ALSO HIRED ABOUT TWO HUNDRED FIFTY NEW EMPLOYEES IN THE LATEST QUARTER PRIMARILY FOR NEW OFFICES IN BEIJING AND HONG KONG BEAR STEARNS HAS ABOUT SIX THOUSAND EIGHT HUNDRED EMPLOYEES IN LATE NEW YORK STOCK EXCHANGE TRADING BEAR STEARNS WAS QUOTED AT TWENTY THREE POINT EIGHT SEVEN FIVE DOLLARS UP SEVENTY FIVE CENTS IN WHAT COULD BE THE INITIAL STEP TOWARD CREATING A CANADIAN JUNK BOND MARKET ROGERS CABLESYSTEMS LIMITED SOLD WHAT IT SAID WAS THE FIRST ISSUE OF HIGH YIELD NOTES DENOMINATED IN CANADIAN DOLLARS THE THREE HUNDRED MILLION CANADIAN DOLLARS TWO HUNDRED TWENTY SIX POINT EIGHT MILLION U. S. DOLLARS OF TWENTY YEAR NINE POINT SIX FIVE PERCENT NOTES WERE SNAPPED UP QUICKLY BUT MOSTLY BY U. S. RATHER THAN CANADIAN BUYERS ROGERS CABLESYSTEMS BASED IN TORONTO IS CANADA'S LARGEST CABLE TELEVISION COMPANY IT IS WHOLLY OWNED BY ROGERS COMMUNICATIONS INCORPORATED PROCEEDS FROM THE OFFERING WILL BE USED TO REPAY DEBT AND FOR GENERAL CORPORATE PURPOSES QUOTE WE HOPE THAT THIS FINANCING WILL MARK THE FIRST STEP IN DEVELOPING A CANADIAN DOLLAR HIGH YIELD MARKET QUOTE SAID GRAHAM SAVAGE CHIEF FINANCIAL OFFICER OF ROGERS COMMUNICATIONS BUT HE SAID IT WILL TAKE TIME TO WIN OVER CANADIAN INSTITUTIONAL INVESTORS JUNK BONDS ARE A TOUGH SELL WITH CANADIAN PENSION FUNDS AND LIFE INSURERS MOST OF WHICH HAVE INTERNAL GUIDELINES THAT PRECLUDE THEM FROM HOLDING DEBT RATED LOWER THAN TRIPLE B. ROGERS'S NEW SECURITIES WERE RATED DOUBLE B. PLUS BY STANDARD AND POOR'S CORPORATION AND B. A. ONE BY MOODY'S INVESTORS SERVICE INCORPORATED UNDERWRITERS INTEND TO PUSH FOR MORE CANADIAN DOLLAR JUNK BOND ISSUES ROBERT GEMMELL A MANAGING DIRECTOR OF THE CANADIAN SUBSIDIARY OF MERRILL LYNCH AND COMPANY SAID THERE ARE AT LEAST TWENTY CANADIAN ISSUERS THAT COULD BE TEMPTED BY THE SUCCESS OF THE ROGERS ISSUE WHICH MERRILL LYNCH MANAGED FOR CANADIAN COMPANIES ISSUING HIGH YIELD DEBT IN CANADIAN DOLLARS ELIMINATES THE PROBLEMS AND EXPENSE THAT COME WITH SWAPPING U. S. DOLLAR DENOMINATED DEBT BACK TO CANADIAN CURRENCY SAID MR. SAVAGE ROGERS HAS BEEN A BIG BORROWER IN U. S. DENOMINATED ISSUES IN THE PAST L. A. GEAR INCORPORATED ESTIMATED A LOSS FROM CONTINUING OPERATIONS OF AS MUCH AS SIXTEEN MILLION DOLLARS FOR THE FOURTH QUARTER ENDED NOVEMBER THIRTIETH ADDING THAT EXCESS INVENTORIES CONTINUE TO DEPRESS EARNINGS FOR FISCAL NINETEEN NINETY THREE THE FOOTWEAR COMPANY SAID IT EXPECTS TO REPORT AN OVERALL LOSS OF AS MUCH AS FORTY ONE POINT TWO MILLION DOLLARS OR ONE DOLLAR AND EIGHTY CENTS A SHARE DESPITE A ONE TIME CREDIT OF TWO POINT SEVEN MILLION DOLLARS AND CONTINUING RESTRUCTURING EFFORTS DESIGNED TO CUT COSTS IMPROVE MARGINS AND REDUCE EMPLOYEES IN FISCAL NINETEEN NINETY TWO L. A. GEAR HAD A LOSS OF SEVENTY TWO MILLION DOLLARS OR THREE DOLLARS AND SEVENTY SIX CENTS A SHARE INCLUDING A CHARGE OF MORE THAN THIRTY FIVE MILLION DOLLARS FOR RESTRUCTURING AND SETTLEMENT OF THREE SHAREHOLDER LAWSUITS FOR THE NINETEEN NINETY TWO FOURTH QUARTER L. A. GEAR HAD A LOSS OF TWENTY NINE POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND THIRTY NINE CENTS A SHARE THE ANTICIPATED NINETEEN NINETY THREE LOSS COMES DESPITE VARIOUS EFFORTS BY THE COMPANY TO IMPROVE INTERNATIONAL RESULTS L. A. GEAR ACQUIRED ITS PREVIOUSLY INDEPENDENT DISTRIBUTORS IN SEVERAL EUROPEAN COUNTRIES AND LAST MONTH IT MOVED TO SET UP ITS OWN DISTRIBUTION SYSTEM IN THE FAR EAST IN OCTOBER THE COMPANY POSTED ITS FIRST QUARTERLY PROFIT IN THREE YEARS BUT IT INDICATED AT THE TIME THAT LOWER THAN EXPECTED PROFIT MARGINS AND CHANGING CONSUMER PREFERENCES WERE LIKELY TO AFFECT FUTURE FINANCIAL RESULTS THE COMPANY ATTRIBUTED ITS SMALLER ANTICIPATED LOSS FOR FISCAL NINETEEN NINETY THREE TO STRONG CHILDREN'S SHOE SALES IMPROVED AVERAGE PRICES AND REDUCED ADMINISTRATIVE COSTS TO TRIM EXCESS INVENTORY OF ABOUT ONE HUNDRED SIX MILLION DOLLARS AT FISCAL YEAR END THE COMPANY SAID IT MAY INCREASE SALES THROUGH DISCOUNT OUTLETS EVEN THOUGH THAT WOULD REDUCE GROSS PROFIT MARGINS INVENTORY WAS SIXTY TWO MILLION DOLLARS A YEAR EARLIER HAGGAR CORPORATION RIDING ONE OF THE HOTTEST TRENDS IN APPAREL SAID IT WILL MANUFACTURE A NEW LINE OF BOYS' PANTS IN ITS WRINKLE RESISTANT COTTON MATERIAL THE NEW LINE WHICH HAGGAR EXPECTS TO HAVE IN STORES FOR THE BACK TO SCHOOL MARKET THIS SUMMER MARKS THE COMPANY'S RETURN TO BOYS' WEAR AFTER A THREE DECADE ABSENCE THE MEN'S APPAREL MAKER ALSO SAID IT IS LAUNCHING A LINE OF WRINKLE RESISTANT COTTON SPORTS SHIRTS TO SUPPLEMENT ITS PANTS HAGGAR SHARES CLOSED YESTERDAY AT TWENTY SIX DOLLARS AND FIFTY CENTS UNCHANGED IN NASDAQ STOCK MARKET TRADING ANALYSTS SAID HAGGAR IS A LEADER IN THIS APPAREL NICHE AND THAT MANY RIVALS SUCH AS LEVI STRAUSS AND COMPANY ARE SCRAMBLING TO CATCH UP QUOTE IT'S GOING TO MOVE INTO EVERY CATEGORY QUOTE SAID BRENDA GALL AN ANALYST AT MERRILL LYNCH AND COMPANY QUOTE BUT HAGGAR IS AHEAD OF THE GAME. FRANK BRACKEN EXECUTIVE VICE PRESIDENT OF THE APPAREL MAKER SAID WE KNOW HOW LONG IT TOOK US TO GET THE TECHNOLOGY STRAIGHT AND THE PRODUCTION UP AND WE THINK WE HAVE AN EIGHTEEN MONTH TO TWO YEAR LEAD HAGGAR AND TO A LESSER EXTENT ITS SMALLER COMPETITOR FARAH INCORPORATED HAVE ENJOYED SUCCESS MARKETING MEN'S COTTON PANTS THAT ARE TREATED TO RESIST WRINKLING MR. BRACKEN SAID THAT SINCE OCTOBER NINETEEN NINETY TWO HAGGAR'S SHARE OF THE MEN'S PANTS MARKET INCREASED TO FIFTEEN PERCENT FROM TWO PERCENT BASED ENTIRELY ON ITS WRINKLE RESISTANT LINE MR. BRACKEN SAID HAGGAR SPENT TWENTY THREE MILLION DOLLARS ADVERTISING THE PANTS IN ITS NINETEEN NINETY THREE FISCAL YEAR WHICH ENDED OCTOBER FIRST TREBLING THE COMPANY'S AD SPENDING FROM THE PREVIOUS YEAR WHILE FARAH HAD A PRODUCT ON THE MARKET FIRST IT DIDN'T HAVE THE FINANCIAL ABILITY TO MARKET IT AS AGGRESSIVELY AS HAGGAR SAID EDWARD F. JOHNSON DIRECTOR OF JOHNSON REDBOOK SERVICE AS ONE VITAL RATIFICATION VOTE NEARS IN THE PROPOSED LABOR LED BUYOUT OF UNITED AIRLINES EFFORTS OF THE PILOT UNION'S LEADERSHIP TO SELL THE DEAL TO MEMBERS ARE RUNNING INTO SOME UNEXPECTED GRASS ROOTS RESISTANCE LEADERS OF THE PILOTS' AND THE MACHINISTS' UNIONS NEGOTIATED THE FIVE BILLION DOLLAR BUYOUT AGREEMENT LATE LAST YEAR WITH U. A. L. CORPORATION THE CARRIER'S PARENT COMPANY IN EXCHANGE FOR AN INITIAL STAKE OF FIFTY THREE PERCENT OF U. A. L. THE TWO UNIONS AND THOUSANDS OF NON CONTRACT WORKERS OFFERED MORE THAN FOUR POINT FIVE BILLION DOLLARS IN WAGE AND WORK RULE CONCESSIONS AND AN ADDITIONAL PACKAGE OF CASH PREFERRED STOCK AND NOTES BUT AS PILOT UNION OFFICIALS FANNED OUT ACROSS THE COUNTRY THIS WEEK TO EXPLAIN THE PROPOSAL TO UNITED'S EIGHT THOUSAND PILOTS SEVERAL PILOTS RAISED SERIOUS CONCERNS ABOUT THE PROPOSED TRANSACTION IN LETTERS THAT ARE BEING WIDELY CIRCULATED THE AIRLINE'S PILOTS STAND TO GAIN THE LARGEST PROPORTION OF EMPLOYEE OWNED STOCK FORTY SIX POINT TWO PERCENT BUT ALSO FACE THE LARGEST PAY CUT AS A GROUP FIFTEEN POINT SEVEN PERCENT QUOTE IT HASN'T BEEN SMOOTH SAILING IN PILOT LAND QUOTE THIS WEEK SAID ONE UNION ADVISER ONE LETTER FROM A LEADING OFFICIAL OF THE PILOTS' UNION GAVE THE FIRST INDICATION THAT RATIFICATION MIGHT NOT BE A SHOO IN WRITTEN BY DAVE LANDRY THE CHAIRMAN OF UNITED'S PILOTS' LOCAL IN LOS ANGELES THE LETTER ASSAILED SEVERAL PARTS OF THE AGREEMENT AND NOTED THAT RATIFICATION IS BY NO MEANS ASSURED MEANWHILE THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS WHICH WILL PUT A VOTE TO ITS MEMBERS LATE THIS MONTH SEEMS MORE SOLIDLY IN FAVOR OF THE PROPOSED DEAL FOR ONE THING ROUGHLY ONE FIFTH OF THE MACHINISTS' MEMBERSHIP FIVE THOUSAND EMPLOYEES WHO WORK FOR A FLIGHT KITCHEN DIVISION THAT IS BEING SOLD ARE LIKELY TO VOTE FOR THE BUYOUT THEY STAND TO RECEIVE SEVERANCE PACKAGES IF THE TRANSACTION IS COMPLETED ALSO THE LEADERS OF THE MACHINISTS UNION LAST WEEK VOTED TO STRONGLY RECOMMEND THAT MEMBERS APPROVE THE DEAL MEMBERS OF THE AIR LINE PILOTS ASSOCIATION DON'T ACTUALLY GET TO RATIFY THE AGREEMENT RATHER IT IS THE UNION'S NATIONAL LEADERS CALLED THE MASTER EXECUTIVE COUNCIL WHO WILL VOTE ON THE DEAL LATE THIS MONTH HOWEVER ONE PURPOSE OF THIS WEEK'S ROADSHOWS IS TO SOUND OUT THE WISHES OF UNITED'S PILOTS THE COUNCIL THEN IS SUPPOSED TO VOTE ACCORDINGLY THE LACK OF DIRECT VOTING STANDARD ALPA PROCEDURE HAS BEGUN TO RANKLE SOME UNITED PILOTS BEFORE NEGOTIATING THE U. A. L. BUYOUT THE MASTER EXECUTIVE COUNCIL NEVER QUIZZED THE RANK AND FILE ABOUT OUR FEELINGS SAID ONE UNITED PILOT IN SEATTLE THE BUYOUT ISN'T VERY POPULAR AND WE'D LIKE TO BE ABLE TO VOTE INDIVIDUALLY IT'S HARD TO SAY JUST HOW WIDESPREAD IS THE OPPOSITION AMONG THE PILOTS UNION OFFICIALS WHO HAVE ATTENDED MEETINGS IN SEVERAL CITIES THIS WEEK SAY THEY HAVE SEEN POCKETS OF RESISTANCE BUT BELIEVE MOST PILOTS GENERALLY ARE SUPPORTIVE THERE ARE A LOT OF MIXED FEELINGS AMONG PILOTS CONCEDED A PILOTS' UNION SPOKESMAN SOME ARE HAPPY WITH THE DEAL SOME AREN'T MR. LANDRY THE UNION LEADER IN LOS ANGELES WOULDN'T BE INTERVIEWED BUT HIS LETTER CRITICIZED THE PROPOSED BUYOUT FOR FAILING TO PROVIDE SO CALLED WAGE SNAPBACKS AT THE END OF THE ALMOST SIX YEAR PERIOD COVERED IN THE AGREEMENT PILOTS WOULD HAVE TO RETURN TO THE NEGOTIATING TABLE TO BARGAIN FOR A PAY RAISE OF MORE THAN FIFTEEN POINT SEVEN PERCENT JUST TO RETURN TO TODAY'S RATES HIS LETTER SAID LAST YEAR UNITED'S PILOTS EARNED AN AVERAGE SALARY OF ONE HUNDRED FOURTEEN THOUSAND DOLLARS ACCORDING TO THE COMPANY HE ALSO WROTE THAT BECAUSE THE AGREEMENT ALLOWS RETIRING EMPLOYEES TO SELL THEIR STOCK TO THE PUBLIC THE TOTAL EMPLOYEES' SHARE OF STOCK WOULD BE DILUTED OVER TIME QUOTE IN OTHER WORDS QUOTE THE LETTER SAID QUOTE THE E. S. O. P. SELF DESTRUCTS QUOTE IN ADDITION TO APPROVALS FROM THE PILOTS AND MACHINISTS UNIONS THE U. A. L. BUYOUT REQUIRES SHAREHOLDER CONSENT A DEFINITIVE AGREEMENT IS SET TO BE COMPLETED BY MARCH FIFTEENTH AND PROXY MATERIALS WILL BE MAILED SOON AFTER MEANWHILE THE ASSOCIATION OF FLIGHT ATTENDANTS THE OTHER BIG UNION AT UNITED SAID IT RECENTLY RECEIVED A PROPOSAL FROM U. A. L. SUGGESTING HOW THE GROUP COULD JOIN THE EMPLOYEE BUYOUT THE FLIGHT ATTENDANTS WHOSE PARTICIPATION ISN'T NECESSARY FOR THE CURRENT TRANSACTION TO CLOSE HAVE BEEN REVIEWING THE PROPOSAL IN MEETINGS THIS WEEK LAST SUMMER THE FLIGHT ATTENDANTS LEFT THE UNION GROUP TRYING TO ACQUIRE MAJORITY CONTROL OF U. A. L. IN A DISPUTE OVER THE AIRLINE'S DECISION TO OPEN A CABIN ATTENDANT BASE OVERSEAS A CONSUMER HEALTH GROUP URGED THE FOOD AND DRUG ADMINISTRATION TO WARN PATIENTS WITH THE FRACTURE PRONE BJORK SHILEY ARTIFICIAL HEART VALVE THAT THE DEVICE MAY BE QUOTE FAR MORE DANGEROUS QUOTE THAN PREVIOUSLY BELIEVED SIDNEY M. WOLFE DIRECTOR OF THE PUBLIC CITIZEN HEALTH RESEARCH GROUP WROTE TO F. D. A. COMMISSIONER DAVID KESSLER HIS LETTER CITED FINDINGS BY DUTCH PHYSICIANS THAT THERE ARE EXTREMELY HIGH FAILURE RATES OF THE BJORK SHILEY CONVEXO CONCAVE OR C. C. VALVES ABOUT FIFTY THOUSAND PEOPLE ARE BELIEVED TO HAVE THE VALVE THE DUTCH STUDY DESCRIBED IN A RECENT ISSUE OF THE BRITISH MEDICAL JOURNAL LANCET INVOLVED ONLY TWENTY FOUR VALVES BUT RESEARCHERS SAID PATIENTS WERE RANDOMLY SELECTED IN AN UNBIASED WAY AFTER IT WAS FOUND THAT FOR VARIOUS REASONS THE VALVE SHOULD BE REMOVED THERE HAVE BEEN ALMOST FOUR HUNDRED TOTAL FAILURES OF THE DEVICE REPORTED TO THE F. D. A. OF WHICH ABOUT TWO THIRDS OF THE PATIENTS DIED FINDINGS OF THE STUDY SUGGEST THE POSSIBILITY THAT THE VALVES MAY FRACTURE AT A SIGNIFICANTLY HIGHER RATE THAN REPORTED IN EARLIER STUDIES THIS COULD ALTER CARDIOLOGISTS' VIEWS ABOUT WHETHER THE RISKS OF THE DEVICE OUTWEIGH THE RISKS OF SURGERY TO REMOVE THEM NEW YORK BASED PFIZER INCORPORATED MAKER OF THE VALVE SAID IN A STATEMENT THAT IT HAS DISCUSSED THE DUTCH FINDINGS WITH THE F. D. A. AND THAT NO CHANGES IN PATIENT CARE WERE RECOMMENDED THE COMPANY WITHDREW THE VALVE FROM THE MARKET IN NINETEEN EIGHTY SIX YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PFIZER COMMON CLOSED AT SIXTY EIGHT DOLLARS AND TWENTY FIVE CENTS OFF THIRTY SEVEN POINT FIVE CENTS THE LANCET ARTICLE SAID DUTCH DOCTORS SURGICALLY REMOVED TWENTY FOUR VALVES SUBJECTED THEM TO METALLURGICAL ANALYSIS AND FOUND THAT SEVEN HAD A FRACTURE IN ONE OF TWO WIRE LIKE LEGS THAT COMPRISE A VALVE PART CALLED A STRUT RESEARCHERS HAVE CONCLUDED THAT SUCH A FAILURE COULD CURTAIL THE FLOW OF BLOOD MOST ASIAN STOCK MARKETS CONTINUED TO FALL THURSDAY WITH THE BRUNT OF THE SELLING HITTING TAIPEI WHERE PRICES PLUNGED FIVE POINT NINE PERCENT AND HONG KONG WHERE EQUITIES LOST FIVE PERCENT MANY EUROPEAN MARKETS ALSO TOOK A DRUBBING LONDON STOCKS' DECLINE EXTENDED INTO A SECOND DAY SHARES SLUMPED TWO PERCENT IN FRANKFURT AND ONE POINT THREE PERCENT IN PARIS BUT ACROSS ASIA BARGAIN HUNTERS TEMPERED THE DECLINES IN SEVERAL MARKETS AND ANALYSTS PREDICTED SOME WOULD REBOUND TODAY QUOTE WHEN YOU SEE MARKETS FALL SO FAST YOU EXPECT THEM TO BOUNCE AND BOUNCE HARD QUOTE SAID PAUL SCHULTE VICE PRESIDENT AT C. S. FIRST BOSTON H. K. LIMITED ANALYSTS AGREED ASIAN MARKETS HAVE BEEN RIPE FOR A SELL OFF AFTER SURGING LAST MONTH BUT BLAMED EMOTION FOR THE SLUMP'S ACCELERATION MR. SCHULTE SAID THE HEAVY SELLING ISN'T A FUNCTION OF FUNDAMENTALS IT'S A FUNCTION OF THE HERD MENTALITY TAIPEI SUCCUMBED THURSDAY IN WHAT WAS CONSIDERED A DELAYED REACTION AFTER RESISTING THE SELLING STAMPEDE FOR SEVERAL DAYS THE MARKET IS OFF EIGHT POINT EIGHT PERCENT FROM THE CURRENT RALLY'S PEAK ON JANUARY FIFTH MORE THAN ONE HUNDRED STOCKS FELL SEVEN PERCENT THE DAILY LIMIT FOR PRICE MOVEMENTS PERMITTED BY THE TAIWAN EXCHANGE THE PANIC SELLING WAS SPURRED FURTHER BY THE RUMORED DEATH LATER DENIED OF THE CHAIRMAN OF FORMOSA PLASTICS GROUP AN INDUSTRIAL CONGLOMERATE SHIPPING STOCKS WERE BADLY HIT WHEN THE TAIWAN GOVERNMENT WOULDN'T BUDGE FROM ITS REFUSAL TO ALLOW DIRECT SHIPPING LINKS WITH CHINA WHICH A TAIWAN OFFICIAL PROPOSED LAST MONTH HELPING TO FUEL BUYING IN THE LATEST RALLY BUT THE TAIPEI MARKET COULD GET A LIFT LATE THURSDAY TAIWAN'S FINANCE MINISTRY SAID SIXTEEN BANKS THAT HAVE SET UP IN THE PAST THREE YEARS MAY TRADE SHARES STARTING TOMORROW AND MOST COMPANIES ARE ABOUT TO PAY BONUSES FOR THE LUNAR NEW YEAR A TRADITIONAL MARKET BOOSTING HOLIDAY SOME INTERNATIONAL INVESTORS ALREADY HAVE BEGUN BUYING BACK INTO HONG KONG'S MARKET AND LONDON TRADED SHARES OF HONG KONG COMPANIES THURSDAY'S SELL OFF THE THIRD IN A ROW PUSHED HONG KONG'S LOSS TO ALMOST SEVENTEEN PERCENT FROM A JANUARY FOURTH PEAK BLUE CHIPS ARE OFF TWENTY PERCENT OR MORE FROM THEIR HIGHS CONTINUED RUMORS THAT HONG KONG BANKS WILL TIGHTEN RESIDENTIAL MORTGAGE LENDING KEPT PRESSURE ON PROPERTY STOCKS THE MARKET'S LARGEST SECTOR BUT ANALYSTS DISMISSED THE EFFECT SUCH AN ACTION WOULD HAVE ON THE PROFITABILITY OF PROPERTY COMPANIES INVESTORS ARE SIMPLY LOOKING FOR AN EXCUSE TO UNLOAD SHARES ANALYSTS SAID C. S. FIRST BOSTON'S MR. SCHULTE SAID THE HONG KONG MARKET'S PRICE SLASH EARNINGS RATIO HAS COLLAPSED TO AROUND FIFTEEN FROM EIGHTEEN BEFORE THE SELLING BEGAN THAT MAKES HONG KONG LOOK INEXPENSIVE COMPARED WITH OTHER MARKETS IN THE REGION AND PUTS HONG KONG ON PAR WITH THE U. S. WHERE THE ECONOMY IS GROWING MUCH MORE SLOWLY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH SURGED THREE HUNDRED EIGHT POINT SIX THREE POINTS WEDNESDAY SKIDDED TWO HUNDRED SIXTEEN POINT SIX TWO OR ONE POINT TWO PERCENT TO EIGHTEEN THOUSAND FIVE HUNDRED SEVENTY SEVEN POINT TWO SIX AS PROFIT TAKING SNAPPED A SIX SESSION STREAK OF GAINS IN TRADING FRIDAY THE NIKKEI INDEX ROSE SEVENTY EIGHT POINT FIVE ONE POINTS TO CLOSE THE MORNING SESSION AT EIGHTEEN THOUSAND SIX HUNDRED FIFTY FIVE POINT SEVEN SEVEN THURSDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT FOUR HUNDRED THIRTY MILLION SHARES DOWN FROM FOUR HUNDRED FIFTY ONE POINT ONE MILLION SHARES A DAY EARLIER THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH GAINED TEN POINT FIVE NINE POINTS WEDNESDAY SLIPPED SEVEN POINT NINE SIX TO ONE THOUSAND FIVE HUNDRED THREE POINT FOUR SEVEN SINGAPORE SHARES SKIDDED TWO POINT NINE PERCENT AS WEAK BUYING TO CORRECT THE EXCESSIVELY OVERSOLD MARKET FAILED AGAIN AND AGAIN AND A FREE FALL WAS PROMPTED BY BOUTS OF FORCED SALES SUCH AS MARGIN CALLS ON POSITIONS BOUGHT ON CREDIT IN KUALA LUMPUR THE MAIN INDEX DIVED THREE POINT FIVE PERCENT FOR THE THIRD CONSECUTIVE LOSS EVEN AFTER A REBOUND FROM THE DAY'S LOWS WHEN BARGAIN HUNTERS DID SOME BUYING IN MANILA SHARES STUMBLED TWO POINT THREE PERCENT THAT MARKET'S FIFTH STRAIGHT DECLINE IN BANGKOK PRICES RETREATED FOR THE SECOND DAY PLUMMETING THREE POINT THREE PERCENT IN SYDNEY SHARES FELL HEAVILY ON CONTINUED PROFIT TAKING IN SEOUL STOCKS ADVANCED ONE POINT FOUR PERCENT ON RALLIES BY BLUE CHIPS AND ISSUES WITH LOW PRICE SLASH EARNINGS RATIOS THOUGH ONCE AGAIN MORE STOCKS FELL THAN ROSE AS FOR REPORTS THAT FOREIGN FUND MANAGERS HAVE SOURED ON ASIA MR. SCHULTE SAID THERE ARE STILL BILLIONS OF DOLLARS IN THE U. S. AND EUROPE WAITING TO GET INTO THESE MARKETS LONDON SHARES ENDED NEAR THE DAY'S LOWS AS THE BRITISH GOVERNMENT WAS EXPECTED TO TEND ECONOMIC RECOVERY CAUTIOUSLY AND STAY TOUGH ON INFLATION DELAYING CUTS IN INTEREST RATES WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED ELEVEN POINT EIGHT TWO DOWN ZERO POINT EIGHT NINE REFLECTING DECREASES IN MARKETS IN ALL THREE REGIONS AMERICAS EUROPE AND ASIA SLASH PACIFIC INDUSTRIAL TECHNOLOGY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT NINETY NINE UP ZERO POINT NINE NINE OR ONE PERCENT WITH ADVANTEST CORPORATION OF JAPAN POSTING A TEN PERCENT GAIN IN ITS LOCAL CURRENCY PLANTATION STOCKS TRAILED AT TWO HUNDRED TEN POINT FIVE ONE DOWN TWENTY SEVEN POINT FIVE ONE OR TWELVE PERCENT WITH ASIATIC DEVELOPMENT B. H. D. OF MALAYSIA SLIDING EIGHTEEN PERCENT IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX SHED TWELVE POINT OH POINTS TO THREE THOUSAND THREE HUNDRED SIXTY POINT OH NEAR THE SESSION LOW THE F. T. THIRTY STOCK INDEX ADDED THREE POINT TWO POINTS TO TWO THOUSAND FIVE HUNDRED SEVENTY SEVEN POINT FOUR VOLUME WAS EIGHT HUNDRED NINETY SIX POINT TWO MILLION SHARES UP FROM EIGHT HUNDRED EIGHT POINT NINE MILLION SHARES A DAY EARLER THE F. T. ONE HUNDRED HAS LOST EIGHTY SIX POINTS THIS WEEK YESTERDAY STOCKS OPENED STRONGLY ON REPORTS OF GOOD CORPORATE EARNINGS AND CHRISTMAS BUSINESS BUT THE BRITISH POUND'S STRENGTH IN CURRENCY DEALINGS SUGGESTED A LENDING RATE CUT ISN'T LIKELY SOON WEAKNESS ON WALL STREET ALSO ADDED TO THE GLOOM IN LONDON WHERE THE CURRENT TRADING ACCOUNT CLOSES FRIDAY TIMING THAT GENERALLY PROMPTS PRICE DECLINES FROM SELLING OF HOLDINGS TO SETTLE NEW PURCHASES IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX SANK FORTY FOUR POINT FIVE TWO POINTS OR TWO PERCENT TO TWO THOUSAND ONE HUNDRED SIXTY FOUR POINT SIX SIX THE PLUNGE CAME ON CORPORATE NEWS INCLUDING GROWING UNCERTAINTY ABOUT A MAJOR RESCUE PLAN AND A POOR EARNINGS OUTLOOK IN PARIS THE MARKET TUMBLED ONE POINT THREE PERCENT AS PRICES CONTINUED THEIR CORRECTION WITH THE DECLINE GAINING SPEED AND BREADTH AS THE FRENCH CENTRAL BANK DECIDED AGAINST CUTTING INTEREST RATES IN STOCKHOLM AFTER A WEAK OPENING STOCKS RALLIED TO END WITH SMALL GAINS IN HEAVY TRADING THE RECOVERY WAS ATTRIBUTED TO A BOOST FOR THE REAL ESTATE AND CONSTRUCTION SECTOR FROM SWEDISH GOVERNMENT ACTION INDICATING A BRIDGE LINKING SWEDEN AND DENMARK WOULD BE APPROVED BUT IN ZURICH EQUITIES TUMBLED ONE POINT SEVEN PERCENT ON PROFIT TAKING AND IN BRUSSELS SHARES WERE DRIVEN DOWN ONE POINT ONE PERCENT BY PROFIT TAKING JITTERS ABOUT A POTENTIAL BELGIAN POLITICAL CRISIS IN CONNECTION WITH A BRIBERY SCANDAL AND HIGHER INTEREST RATES IN MEXICO CITY STOCKS DROPPED ONE POINT TWO PERCENT ON PROFIT TAKING FOLLOWING THE PREVIOUS DAY'S RISE UP NEAR RECORD TERRITORY THE THREAT OF A DRAWN OUT CONFRONTATION WITH ANTI GOVERNMENT REBELS ALSO PRESSURED STOCKS 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END BOND PRICES PLUNGED ON A STRONGER THAN EXPECTED RETAIL SALES REPORT STOCKS AND THE DOLLAR WERE MIXED THE DOW JONES INDUSTRIAL AVERAGE SLIPPED SIX POINT TWO OH POINTS TO THREE THOUSAND EIGHT HUNDRED FORTY TWO POINT FOUR THREE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX FELL ONE POINT SEVEN OH TO FOUR HUNDRED SEVENTY TWO POINT FOUR SEVEN BUT THE NASDAQ COMPOSITE INDEX INCHED UP ZERO POINT NINE FOUR TO A RECORD SEVEN HUNDRED EIGHTY SEVEN POINT EIGHT ONE BOND TRADERS IGNORED POSITIVE INFLATION NEWS AND FOCUSED INSTEAD ON EVIDENCE OF ROBUST RETAIL SALES FOR DECEMBER ROBERT GOODMAN SENIOR ECONOMIC ADVISER AT PUTNAM INVESTMENTS SAID THE STRONG RETAIL SALES FIGURES KEPT FEARS OF INFLATION ALIVE QUOTE BOND TRADERS ARE ASSOCIATING ECONOMIC GROWTH AND INFLATION PRESSURES AND THEY'RE DEAD WRONG QUOTE MR. GOODMAN SAID A RECENT SLUMP IN THE DOW JONES UTILITY AVERAGE OFTEN AN INDICATOR OF INTEREST RATE TRENDS SUGGESTS A FURTHER CLIMB IN INTEREST RATES SAID DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS THE UTILITY AVERAGE IS FLASHING A BIG YELLOW WARNING SIGN THAT THE BOND MARKET MAY HAVE SOME TROUBLE AHEAD MR. SHULMAN SAID WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX DROPPED ZERO POINT EIGHT NINE TO ONE HUNDRED ELEVEN POINT EIGHT TWO STOCK PRICES WERE MIXED VOLUME TOTALED TWO HUNDRED SEVENTY SEVEN POINT NINE MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND ONE HUNDRED FORTY TWO ISSUES FELL AND NINE HUNDRED THIRTY SIX ROSE BOND PRICES PLUNGED THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE SLID NEARLY ONE POINT OR ALMOST TEN DOLLARS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT TWO FIVE PERCENT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN FIVE OH FIVE MARKS AND ONE HUNDRED ELEVEN POINT SEVEN SIX YEN COMPARED WITH ONE POINT SEVEN THREE THREE SEVEN MARKS AND ONE HUNDRED TWELVE POINT TWO OH YEN WEDNESDAY AFTER SPENDING ALMOST THE ENTIRE SESSION IN NEGATIVE TERRITORY SMALL COMPANY STOCKS ENDED THE DAY MOSTLY HIGHER WITH TWO KEY INDEXES CLOSING AT RECORD LEVELS SMALL COMPANY STOCKS FELL AT THE OPENING ON THE WEAKNESS OF THE BOND MARKET BUT THOUGH BOND PRICES CONTINUED TO DETERIORATE THROUGH THE DAY WITH THE TREASURY LONG BOND POSTING A LOSS OF MORE THAN A FULL POINT SMALL CAPITALIZATION STOCKS HIT THEIR LOWS AT MIDDAY AND SPENT THE AFTERNOON EDGING BACK TOWARD POSITIVE TERRITORY THE RESILIENCE OF SMALL CAP STOCKS IS SEEN BY TRADERS AND ANALYSTS AS AN INDICATION THAT THE MARKET MIGHT PUSH HIGHER BEFORE A WIDELY ANTICIPATED CORRECTION THE SMALL COMPANY MARKET QUOTE IS TRYING TO CORRECT TRYING TO CONSOLIDATE QUOTE SAID PATRICK DAVIS HEAD OF OVER THE COUNTER TRADING AT SALOMON BROTHERS INCORPORATED HE POINTED OUT HOWEVER THAT WHENEVER THE MARKET HAS COME UNDER PRESSURE RECENTLY PEOPLE SEEM TO STEP BACK IN THE RUSSELL TWO THOUSAND INDEX A MEASURE OF SMALL CAP STOCKS TRADED ON THE MAJOR STOCK EXCHANGES AND ON THE NASDAQ STOCK MARKET WAS UP ZERO POINT FOUR ONE OR ZERO POINT ONE SIX PERCENT TO CLOSE AT A RECORD TWO HUNDRED SIXTY POINT SIX FOUR HAVING TRADED AS LOW AS TWO HUNDRED FIFTY NINE POINT SIX THE NASDAQ COMPOSITE INDEX ENDED UP ZERO POINT NINE FOUR OR ZERO POINT ONE TWO PERCENT AT A RECORD SEVEN HUNDRED EIGHTY SEVEN POINT EIGHT ONE SURPASSING A HIGH SET IN OCTOBER NINETEEN NINETY THREE EARLIER THE COMPOSITE FELL AS LOW AS SEVEN HUNDRED EIGHTY THREE POINT SEVEN FOUR THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL ZERO POINT SIX FOUR OR ZERO POINT TWO FOUR PERCENT TO TWO HUNDRED SIXTY ONE POINT SEVEN THREE AND THE DOW JONES INDUSTRIAL AVERAGE AT THREE THOUSAND EIGHT HUNDRED FORTY TWO POINT FOUR THREE WAS DOWN SIX POINT TWO OR ZERO POINT ONE SIX PERCENT ON NASDAQ ADVANCERS LED DECLINERS ONE THOUSAND FIVE HUNDRED EIGHTY SEVEN TO ONE THOUSAND FOUR HUNDRED SIX ON TOTAL VOLUME OF TWO HUNDRED EIGHTY NINE MILLION SHARES DOWN FROM WEDNESDAY'S THREE HUNDRED TWENTY THREE MILLION SHARES NATIONAL MARKET VOLUME WAS TWO HUNDRED FORTY FIVE MILLION SHARES DOWN FROM TWO HUNDRED SEVENTY FOUR MILLION THE DAY BEFORE AFTER REPORTING FOURTH QUARTER EARNINGS OF ELEVEN CENTS A SHARE COMPARED WITH A YEAR EARLIER EIGHT CENTS SPECIAL DEVICES ROSE ONE AND THREE QUARTERS OR TWENTY THREE PERCENT TO NINE AND THREE QUARTERS TRICORD SYSTEMS GAINED TWO AND THREE EIGHTHS OR TWELVE PERCENT TO TWENTY TWO AND ONE EIGHTH AFTER C. S. FIRST BOSTON RAISED ITS RATING ON THE COMPANY'S STOCK TO STRONG BUY FROM BUY BALTIMORE BANCORP N. Y. S. E. ROSE ONE AND FIVE EIGHTHS OR TWELVE PERCENT TO FIFTEEN AND FIVE EIGHTHS ON SPECULATION THAT MELLON BANK MIGHT BE CONSIDERING A TWENTY ONE DOLLAR A SHARE OFFER TO BUY THE COMPANY AFTER THE STOCK'S INITIAL SURGE WHICH PUSHED IT TO SIXTEEN AND ONE QUARTER BALTIMORE BANCORP SAID IT DOESN'T EXPECT TO RECEIVE A BID FROM MELLON AND ISN'T IN NEGOTIATIONS WITH IT REGARDING A SALE MELLON DECLINED TO COMMENT ALSO ON THE BIG BOARD PUBLIC SERVICE COMPANY OF NEW MEXICO ROSE ONE AND THREE EIGHTHS OR TWELVE PERCENT TO THIRTEEN AND ONE EIGHTH AFTER THE COMPANY LATE WEDNESDAY SAID IT WILL TAKE A FOURTH QUARTER WRITE DOWN OF ONE HUNDRED TWELVE MILLION DOLLARS OR TWO DOLLARS AND SIXTY NINE CENTS A SHARE IN A MOVE TO REGAIN FINANCIAL HEALTH THE COMPANY ALSO SAID IT WILL SEEK A THIRTY MILLION DOLLAR IMMEDIATE RATE REDUCTION AND WILL CUT NET OPERATING COSTS BY TEN MILLION DOLLARS SPAGHETTI WAREHOUSE N. Y. S. E. SAID IT PLANS TO BUY BACK UP TO FIVE HUNDRED THOUSAND COMMON SHARES FOR INVESTMENT PURPOSES ITS STOCK PRICE ROSE THREE QUARTERS OR NINE POINT EIGHT PERCENT TO EIGHT AND THREE EIGHTHS AMONG THE MOST ACTIVE AMONG SMALLCAP GAINERS WAS SPECIALTY RETAIL GROUP WHICH SAID SALES AT ITS BUILDING BLOCKS SUBSIDIARY ROSE ONE HUNDRED SIXTY SEVEN PERCENT IN THE QUARTER ENDED JANUARY SECOND FROM THE YEAR EARLIER PERIOD WHILE SAME STORE SALES WERE UP NINE PERCENT FOR THE QUARTER SPECIALTY RETAIL SHARES ROSE ONE EIGHTH OR EIGHTEEN PERCENT AT TWO AND ONE QUARTER BIOMAGNETIC TECHNOLOGIES FELL THREE EIGHTHS OR NINE POINT FOUR PERCENT TO THREE AND FIVE EIGHTHS AFTER THE COMPANY REPORTED A LOSS FOR THE YEAR OF ONE DOLLAR AND ELEVEN CENTS A SHARE COMPARED WITH A YEAR EARLIER PER SHARE LOSS OF NINETY EIGHT CENTS THE COMPANY SAID IT WILL NEED ADDITIONAL FINANCING TO REMAIN A GOING CONCERN L. A. GEAR N. Y. S. E. FELL ONE AND ONE QUARTER OR THIRTEEN PERCENT TO EIGHT AND THREE QUARTERS AFTER THE COMPANY SAID IT EXPECTS TO REPORT A FOURTH QUARTER LOSS FROM CONTINUING OPERATIONS OF FOURTEEN MILLION DOLLARS TO SIXTEEN MILLION DOLLARS AND THAT ITS FULL YEAR CONTINUING OPERATIONS LOSS WILL BE THIRTY ONE POINT FIVE MILLION DOLLARS TO THIRTY THREE POINT FIVE MILLION DOLLARS PROPELLED BY RECORD TRADING REVENUE J. P. MORGAN AND COMPANY YESTERDAY ANNOUNCED SHARPLY HIGHER FOURTH QUARTER EARNINGS FOUR OTHER BANKS BANK OF NEW YORK COMPANY WACHOVIA CORPORATION FIRST FIDELITY BANCORP AND MELLON BANK CORPORATION ALSO ANNOUNCED IMPROVED RESULTS MORGAN'S RESULTS WERE DRIVEN BY TRADING REVENUE OF SIX HUNDRED SIX MILLION DOLLARS UP FROM TWO HUNDRED MILLION DOLLARS IN THE YEAR EARLIER PERIOD DRIVING PROFITS FOR THE FOUR OTHER BANKS WERE CONTINUED WIDE PROFIT MARGINS BETWEEN BORROWING COSTS AND RATES EARNED ON LOANS AS WELL AS UPTICKS IN REVENUE FROM LENDING AND CREDIT CARDS THE IMPROVED RESULTS DID LITTLE FOR THE BANKS' STOCK PRICES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY MORGAN CLOSED AT SEVENTY POINT THREE SEVEN FIVE DOLLARS UP SEVENTY FIVE CENTS BANK OF NEW YORK CLOSED UNCHANGED AT FIFTY EIGHT DOLLARS AND SEVENTY FIVE CENTS WACHOVIA GAINED TWELVE POINT FIVE CENTS TO THIRTY THREE POINT EIGHT SEVEN FIVE DOLLARS FIRST FIDELITY CLOSED AT FORTY FOUR DOLLARS AND FIFTY CENTS UP TWELVE POINT FIVE CENTS AND MELLON CLOSED AT FIFTY FOUR POINT EIGHT SEVEN FIVE DOLLARS UP FIFTY CENTS QUOTE MORGAN HAD A GREAT TRADING RESULT AND THE STOCK DID NOT REACT VERY POSITIVELY QUOTE SAID ROBERT ALBERTSON THE CHIEF BANK ANALYST AT GOLDMAN SACHS AND COMPANY THE RESULTS FOR THE REGIONALS WERE PRETTY MUCH WHAT WE EXPECTED SO THEY WERE ALSO BASICALLY NEUTRAL THE STRONGER THAN EXPECTED TRADING RESULTS WERE A VERY BIG SURPRISE SAID JAMES ROSENBERG A BANK ANALYST WITH LEHMAN BROTHERS INCORPORATED WHO SAID THAT A LARGE CHUNK OF THE EARNINGS CAME FROM LATIN AMERICAN DEBT INSTRUMENTS ALTHOUGH THE STOCK MARKET HAS TENDED TO TREAT THE NEW YORK BANK'S MASSIVE TRADING PROFITS SOMEWHAT SKEPTICALLY OUT OF A CONCERN THAT THEY ARE ONE TIME GAINS ANALYSTS ARE BEGINNING TO VIEW TRADING EARNINGS MORE FAVORABLY MORGAN IS SHOWING US THAT THEY HAVE THE CAPACITY TO SURPRISE US OVER AND OVER MR. ROSENBERG SAID IN ADDITION TO ITS SPECTACULAR TRADING INCOME MORGAN HAD STRONG REVENUE GROWTH IN VIRTUALLY ALL OF ITS OTHER BUSINESS SEGMENTS FEES FROM INVESTMENT MANAGEMENT AS WELL AS CUSTODY CLEARING AND BROKERAGE SERVICES ALL ROSE SIGNIFICANTLY IN THE QUARTER CORPORATE FINANCE WAS A PARTICULAR STANDOUT JUMPING BY FORTY FIVE PERCENT TO ONE HUNDRED FIFTY EIGHT MILLION DOLLARS THE BIG NEW YORK BANK BENEFITED FROM INCREASED FEE INCOME REDUCED CREDIT AND OPERATING COSTS AND SLIGHTLY ENHANCED NET INTEREST MARGINS HOWEVER WHILE EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS CHRISTOPH KOTOWSKI A SENIOR VICE PRESIDENT AT OPPENHEIMER AND COMPANY SAID THEY WOULD HAVE FALLEN SHORT IF IT WEREN'T FOR A REDUCTION IN ITS RATE OF TAXATION ALTHOUGH THE NUMBERS ARE WHAT WE EXPECTED THAT'S ONLY BECAUSE THEIR TAX RATE DROPPED A COUPLE POINTS HE SAID IT WAS A DISAPPOINTING QUARTER QUOTE THEIR SPREAD IS STAYING STABLE BECAUSE THEY ARE GROWING THE CREDIT CARD BUSINESS QUOTE SAID DAVID BERRY THE RESEARCH DIRECTOR AT KEEFE BRUYETTE AND WOODS MICHAEL PASCALE A VICE PRESIDENT OF THE BANK SAID CARDS CONTRIBUTED ABOUT TWENTY THREE PERCENT OF EARNINGS THROUGHOUT NINETEEN NINETY THREE THE PITTSBURGH BASED COMPANY POSTED NET INCOME OF ONE HUNDRED FOURTEEN MILLION DOLLARS OR ONE DOLLAR AND FIFTY CENTS A SHARE THAT COMPARES WITH YEAR EARLIER NET OF ONE HUNDRED FIVE MILLION DOLLARS OR ONE DOLLAR AND SIXTY TWO CENTS A SHARE WHICH INCLUDED A TAX BENEFIT OF TWENTY NINE MILLION DOLLARS FOR NINETEEN NINETY THREE EARNINGS DECLINED SEVENTEEN PERCENT A REFLECTION MELLON SAID OF A ONE HUNDRED THIRTY MILLION DOLLAR TAX BENEFIT A YEAR EARLIER THE BANK POSTED NET INCOME OF THREE HUNDRED SIXTY ONE MILLION DOLLARS OR FOUR DOLLARS AND SIXTY THREE CENTS A SHARE FOR NINETEEN NINETY THREE INCLUDING THE NET IMPACT OF A RESTRUCTURING CHARGE RELATED TO BOSTON COMPANY AND SECURITIES GAINS THAT COMPARES WITH YEAR AGO NET OF FOUR HUNDRED THIRTY SEVEN MILLION DOLLARS OR SIX DOLLARS AND NINETY SIX CENTS A SHARE INCLUDING THE TAX BENEFIT MELLON RETURNED TO FULLY TAXED STATUS IN NINETEEN NINETY THREE AFTER EXHAUSTING TAX BENEFIT CARRY FOWARD IN LATE NINETEEN NINETY TWO THE BANK EMPHASIZED THAT OPERATING EARNINGS WERE UP IN NINETEEN NINETY THREE ON A FULLY TAXED BASIS YEAR EARLIER FIGURES WERE THREE HUNDRED SEVEN MILLION DOLLARS OR FOUR DOLLARS AND SIXTY THREE CENTS A SHARE IN THE FOURTH QUARTER OF NINETEEN NINETY THREE MELLON AGREED TO ACQUIRE DREYFUS CORPORATION A MUTUAL FUND COMPANY FOR ONE POINT EIGHT FIVE BILLION DOLLARS MELLON'S PROVISION FOR CREDIT LOSSES WAS TWENTY FIVE MILLION DOLLARS IN THE FOURTH QUARTER DOWN FROM THIRTY FIVE MILLION DOLLARS A YEAR EARLIER NONPERFORMING ASSETS DECLINED THIRTEEN PERCENT AT DECEMBER THIRTY FIRST COMPARED WITH SEPTEMBER THIRTIETH NET INTEREST MARGIN WAS FOUR POINT THREE NINE PERCENT AT THE END OF NINETEEN NINETY THREE COMPARED WITH FOUR POINT FOUR FOUR PERCENT A YEAR EARLIER WACHOVIA CONTINUED TO BENEFIT FROM GROWING INTEREST INCOME AND REDUCTIONS IN BOTH EXPENSES AND PROVISIONS FOR CREDIT LOSSES THE COMPANY WITH JOINT HEADQUARTERS IN WINSTON SALEM N. C. AND ATLANTA SAW A SEVEN POINT SIX PERCENT INCREASE IN LOANS IN THE FOURTH QUARTER TO ONE POINT FIVE SEVEN BILLION DOLLARS TOTAL AVERAGE INTEREST EARNING ASSETS INCREASED ALMOST TEN PERCENT TO TWO POINT EIGHT ONE BILLION DOLLARS FROM A YEAR EARLIER WACHOVIA'S ALREADY STRONG CREDIT QUALITY CONTINUED TO IMPROVE WITH NONPERFORMING ASSETS TOTALING ONE HUNDRED FIFTY FOUR POINT NINE MILLION DOLLARS AT THE END OF THE FOURTH QUARTER COMPARED WITH ONE HUNDRED EIGHTY EIGHT POINT ONE MILLION DOLLARS IN THE THIRD QUARTER THE RESULTS WHICH WERE IN LINE WITH EXPECTATIONS REFLECTED A PROVISION FOR CREDIT LOSSES OF EIGHTEEN MILLION DOLLARS FOR THE JUST COMPLETED QUARTER COMPARED WITH TWENTY EIGHT POINT SIX MILLION DOLLARS A YEAR EARLIER FOR THE YEAR THE PROVISION FOR LOAN LOSSES WAS NINETY TWO POINT SEVEN MILLION DOLLARS COMPARED WITH ONE HUNDRED NINETEEN POINT FOUR MILLION DOLLARS IN NINETEEN NINETY TWO FIRST FIDELITY'S SIXTEEN PERCENT INCREASE IN FOURTH QUARTER NET INCOME RESULTED IN PER SHARE EARNINGS THAT WERE SLIGHTLY HIGHER THAN THE CONSENSUS ESTIMATE OF ANALYSTS THE IMPROVED PERFORMANCE PARTLY REFLECTED THE LAWRENCEVILLE N. J. BANKING COMPANY'S ACQUISITIONS IN NINETEEN NINETY THREE FIRST FIDELITY ACQUIRED FIVE BANKS AND IT ANNOUNCED THREE ADDITIONAL ACQUISITIONS THAT IT EXPECTS TO CLOSE IN THE NINETEEN NINETY FOUR FIRST HALF THE RESULTS ALSO REFLECTED AN INCREASE IN NET INTEREST INCOME IMPROVING ASSET QUALITY AND SOME INCREASES IN CERTAIN NONINTEREST INCOME FIRST FIDELITY ALSO CITED CONTINUING CONTROL OF OPERATING EXPENSES AT YEAR END FIRST FIDELITY'S TOTAL ASSETS WERE UP TO THIRTY TWO POINT TWO SEVEN BILLION DOLLARS FROM THIRTY POINT EIGHT NINE BILLION DOLLARS A YEAR EARLIER TONY TERRACCIANO CHAIRMAN AND CHIEF EXECUTIVE SAID THE COMPANY'S GEOGRAPHIC EXPANSION THROUGH ACQUISITIONS SHOULD PROVIDE OPPORTUNITIES FOR CONTINUED COST EFFECTIVE GROWTH IN THE NOW STRONGER ECONOMY WHEN ONE OF HER WRITERS FAILS TO PERSUADE A HOMICIDE INVESTIGATOR TO GIVE UP A PHOTO OF A BLUDGEONED CORPSE ROSE MANDELSBERG EDITOR OF TRUE DETECTIVE MAGAZINE GETS THE COP ON THE PHONE LOWERING HER VOICE PROVOCATIVELY THE RED HAIRED THIRTY SEVEN YEAR OLD MS. MANDELSBERG PURRS QUOTE OF COURSE SERGEANT WE'LL NEED A GOOD PICTURE OF YOU TOO WE APPRECIATE EXCELLENT POLICE WORK THUS DISARMED THE OFFICER STILL PROTESTS THAT HIS PHOTOS ARE TOO GRUESOME FOR PUBLICATION BUT AFTER HE GRILLS MS. MANDELSBERG ABOUT HER JOURNALISTIC ETHICS SHE RESPONDS NO SIR I DON'T WANT TO PUT THE CREATURE FROM THE BLACK LAGOON ON MY COVER WE WANT TO TASTEFULLY KEEP OUR READERS INFORMED THE PHOTOS LAND ON HER DESK THE NEXT DAY THE WORLD OF DETECTIVE MAGAZINES IS JUST BRUTAL THESE DAYS THE BREATHLESS WHODUNIT GAZETTES ARE GRUDGINGLY BEING TRANSFORMED INTO A WHO'S WHO OF GORE THE OLD FORMULA OF GUMSHOE GETS BAD GUY ISN'T ENOUGH TO ATTRACT CRIME BUFFS ANYMORE AS READERS HAVE BECOME JADED BY THE STEADY STREAM OF MOTIVELESS BLOODBATHS ON THE EVENING NEWS THE LOVE TRIANGLE STILL HAPPENS BUT THERE ARE MORE ATROCITIES NOW AND PEOPLE ARE REALLY INTO THEM MS. MANDELSBERG SAYS WISTFULLY SQUEEZED BY COMPETITION FROM SUPERMARKET TABLOIDS AND A WAVE OF TRUE CRIME T. V. SHOWS SUCH AS QUOTE AMERICA'S MOST WANTED QUOTE MS. MANDELSBERG FEELS COMPELLED TO RUN EVER MORE SENSATIONAL COVERS AND HEADLINES HER EDITORS RECENTLY CRAFTED SUCH GEMS AS FOR A MEASLY FIFTEEN BUCKS HE RIPPED HER BODY APART OVER AND OVER WHO TORCHED GRANDPA AT THE RODEO AND STRANGLED NUDE IN A FLYING HEARSE ALONG WITH THE BLOOD AND GORE A SENSE OF PRIDE COMES WITH THE CRIME WRITER'S JOB EVERY WORD IS FACT SAYS MS. MANDELSBERG AND WE AREN'T HACKS WE KNOW THAT THE WORD DUMPSTER IS A CAPITALIZED TRADEMARK WHEN SO MANY PEOPLE YOU WRITE ABOUT END UP STUFFED IN THE GARBAGE YOU HAVE TO KNOW THINGS LIKE THAT BESIDES EDITING TRUE DETECTIVE SHE IS ALSO EDITOR IN CHIEF OF FOUR OTHER CRIME MAGAZINES PLUS SOME SPECIAL YEARBOOKS FRONT PAGE DETECTIVE INSIDE DETECTIVE MASTER DETECTIVE AND OFFICIAL DETECTIVE THE MAGAZINES OWNED BY REESE COMMUNICATIONS INCORPORATED IN MANHATTAN HAVE A COMBINED CIRCULATION OF FIVE HUNDRED THOUSAND WHICH IS HOLDING STEADY BUT GRIMLY SO SINGLE COPY SALES AT TWO DOLLARS AND FIFTY CENTS EACH REPRESENT EIGHTY PERCENT OF THE CIRCULATION BUT THE PROLIFERATION OF NEW MAGAZINES WHICH HAVE GROWN EIGHTY THREE PERCENT TO THREE THOUSAND THREE HUNDRED TITLES SINCE NINETEEN EIGHTY TWO HAS PUSHED CRIME PERIODICALS OFF MANY DOWNTOWN NEWSSTANDS SO THE GENRE NOW SURVIVES MAINLY IN SUBURBAN CONVENIENCE STORES SUPERMARKETS AND DRUGSTORES ESPECIALLY IN THE SOUTH THAT'S A FAR CRY FROM WHEN THE FIRST ISSUE OF TRUE DETECTIVE APPEARED IN NINETEEN TWENTY FOUR IT WAS THE GUMSHOE'S GOLDEN AGE CRIME WRITERS WERE ABLE TO IMPOSE A CERTAIN RHYME REASON AND ROMANCE ON THEIR STORIES BEFORE AUTOMATIC PISTOLS AND RANDOM SLAUGHTER BECAME COMMON A YELLOWED PAGE IN AN EARLY EDITION CARRIES A BYLINE THAT WOULD LATER BECOME FAMOUS FOR FICTIONALIZED MYSTERIES DASHIELL HAMMETT THE CREATOR OF SAM SPADE BUT THE MAGAZINES' DEPICTION OF GLAMOUR IN DETECTIVE WORK IS MORE AND MORE LOST IN THE BLOOD AND GUTS OF TODAY'S CRIMES SAYS ARTHUR LURIGIO ASSOCIATE PROFESSOR OF CRIMINOLOGY AT LOYOLA UNIVERSITY IN CHICAGO PEOPLE NOW READ ABOUT CRIME TO BE PSYCHOLOGICALLY INOCULATED TO SEE THAT THOSE WHO COMMIT HORRORS ARE CAUGHT HE SAYS SOME CRIME BUFFS FIND TODAY'S CRIMINALS LESS INTERESTING THAN YESTERYEAR'S CRIME NOVELIST ELMORE LEONARD SAYS MOST MODERN FELONS ARE TOO SENSELESS TO INSPIRE HIS FICTION QUOTE WHEN I WAS A KID IN THE NINETEEN THIRTIES I HAD A PICTURE TAKEN WITH A TOY GUN IN A POSE MIMICKING BONNIE AND CLYDE WHO WERE ON A ROBBERY SPREE BUT THEY WEREN'T SHOOTING THEIR VICTIMS DOWN LIKE DOGS THE WAY SO MANY ROBBERS DO NOW WHERE'S THE DRAMA IN THAT KIND OF CRAZINESS I CAN'T GET INTERESTING CRIMINALS OUT OF THE NEWS I HAVE TO MAKE THEM UP BUT MS. MANDELSBERG HAS TO STICK TO THE FACTS RIGHT DOWN TO THE MOST GRISLY PARTICULARS WE HAVE A CORE OF LOYALISTS OUT THERE WHO WANT EVERY DETAIL FROM WHAT BRAND OF CIGARETTE THE PERP WAS SMOKING TO SEEING THE BALLISTICS EXPERT DIG THE SLUG OUT OF A BODY TO THE JUDGE METING OUT THE SENTENCE ACCORDING TO A RECENT SURVEY FIFTY FOUR PERCENT OF TRUE DETECTIVE READERS ARE WOMEN ONE IS GAIL JENSEN OF VADNAIS HEIGHTS MINNESOTA WHO SELLS INDUSTRIAL PRODUCTS AND SAYS HER MAIN HOBBY IS KNITTING I ABHOR VIOLENCE SHE SAYS I READ THESE MAGAZINES TO SEE CRIMINALS BROUGHT TO JUSTICE CATHERINE HAAS AN OMAHA NEBRASKA INVESTMENT COUNSELOR SAYS SHE LIKES READING STORIES ABOUT MURDERERS OF OLD LADIES REALLY VICIOUS TYPES BUT SHE WON'T LET HER ELEVEN AND THIRTEEN YEAR OLD CHILDREN LOOK AT THE MAGAZINE AND SHE SAYS SHE IS PRAYING THAT QUOTE NYPD BLUE QUOTE IS TAKEN OFF TELEVISION BECAUSE OF ITS VIOLENCE JOE SCHWARZ A CHICAGO DENTIST SAYS OFFICIAL DETECTIVE MAGAZINE LETS HIM LIVE VICARIOUSLY IN A WORLD OF CATCHING RAPISTS AND KILLERS IT'S ESCAPISM BUT HE DOESN'T LEAVE COPIES IN HIS PATIENT WAITING AREA PEOPLE HAVING THEIR TEETH CARED FOR DON'T NEED TO READ ABOUT CHAIN SAW MASSACRES HE SAYS TRUE DETECTIVE ALSO REACHES PEOPLE ON THE OTHER SIDE OF THE LAW EACH MONTH THE PUBLICATION RECEIVES A FEW LETTERS FROM PRISON INMATES MANY OF THEM PRAISE THE MAGAZINE'S UBIQUITOUS ADS FOR SCHOOLS AND CORRESPONDENCE COURSES TO BECOME PRIVATE EYES AND LOCKSMITHS SAYING THEY INSPIRED THEM TO TURN THEIR LIVES AROUND ADS COST FIVE HUNDRED DOLLARS A PAGE A JOB AT TRUE DETECTIVE CAN BE UNSETTLING FOR THE SQUEAMISH GARY KRYSTOFIAK WHO WAS HIRED AS PRODUCTION MANAGER FROM CLASSICAL A MUSIC MAGAZINE LAST YEAR SAYS HE BECAME NAUSEATED OVER LUNCH AFTER VIEWING SOME PHOTOS FOR HIS NEW EMPLOYER WHAT WE CALL ART HE EXCLAIMS PUTTING ONE HAND ON HIS STOMACH BUT PEOPLE WANT DIRT BEN HIRSCH ART DIRECTOR FOR THE MAGAZINES SAYS DEFENSIVELY LEARNING THE CRAFT MS. MANDELSBERG SEEMS AN UNLIKELY PERSON TO EDIT THESE BLOODCURDLING PUBLICATIONS A FORMER PRIVATE SCHOOL ENGLISH TEACHER SHE SAYS HER FAVORITE WRITER IS CHAUCER SHE SAYS SHE TOOK A SECRETARIAL JOB AT TRUE DETECTIVE IN NINETEEN SEVENTY SEVEN SIMPLY TO DO SOMETHING QUOTE MORE CREATIVE QUOTE SHE BEGAN LEARNING ABOUT CRIME WRITING WHILE TYPING EDITORS' LETTERS TO FREE LANCERS INSTRUCTING THEM ON IMPROVING THEIR STORIES WHEN ASSIGNED TO FACT CHECK ARTICLES SHE LEARNED TO UNCOVER AND CORROBORATE EVIDENCE SHE ALSO DEVELOPED A SKILL FOR GETTING PHOTOS OF CRIME VICTIMS FROM RELUCTANT SOURCES SOME OF WHOM WORRY ABOUT BEING SUED FOR HANDING THEM OVER IF THE DETECTIVES WON'T COOPERATE I GO TO THE DISTRICT ATTORNEY THEN THE CORONER UNTIL SOMEONE COMES THROUGH SINCE TAKING OVER MS. MANDELSBERG HAS DONE AWAY WITH ONE STAPLE OF THE TRADE STAGED COVER PHOTOS SHOWING SCANTILY CLAD WOMEN UNDER ATTACK BY MEN THE COVERS WERE SEXIST SHE SAYS BUT WOMEN STILL TURN UP MOST OFTEN AS VICTIMS IN STORIES AND THE COPY AND GRAPHICS HAVE BECOME INCREASINGLY GRAPHIC I PUSH FOR EXCELLENCE IN WRITING BUT WHEN A KILLER REMOVES THE VICTIM'S INTESTINES IT'S FASCINATING SAYS MS. MANDELSBERG CHRISTOS MIRTSOPOULOS A STORY EDITOR AT TRUE DETECTIVE SAYS THE EDITING AT THE MAGAZINE IS FIRM BY NECESSITY WE HAVE TO SAVE THE READER FROM SOME WRITERS WHO THINK THEY'RE MICKEY SPILLANE HE SAYS THE MAGAZINE PAYS JUST TWO HUNDRED FIFTY DOLLARS FOR A SIX THOUSAND WORD STORY TWO HUNDRED DOLLARS FOR COVER PHOTOS CHARLES SASSER A FORMER HOMICIDE SQUAD DETECTIVE IN TULSA OKLAHOMA HAS WRITTEN ABOUT FOUR HUNDRED SUCH PIECES SINCE QUITTING THE FORCE HE SAYS I ENJOY REPORTING ON DETECTIVES BUT BEING ONE GAVE ME NIGHTMARES COMPUSERVE INCORPORATED THE NATIONS OLDEST LARGEST AND COSTLIEST ON LINE COMPUTER SERVICE TO SUBSCRIBE TO SAID IT WILL CUT ITS SUBSCRIBER FEES BY AS MUCH AS FORTY PERCENT CITING CHEAPER TECHNOLOGY AND LOWER OPERATING COSTS THE H. AND R. BLOCK INCORPORATED UNIT SAID IT WILL SLASH ITS HOURLY CHARGES FEBRUARY SIXTH BY AS MUCH AS FORTY PERCENT DEPENDING ON THE MODEM SPEED SUBSCRIBERS USE TO ACCESS THE SYSTEM SUBSCRIBERS ACCESSING THE SYSTEM WITH THREE HUNDRED BITS PER SECOND OR TWELVE HUNDRED TO TWO THOUSAND FOUR HUNDRED BITS PER SECOND MODEMS WILL SEE THE HOURLY FEE DROP TO FOUR DOLLARS AND EIGHTY CENTS FROM SIX DOLLARS AND EIGHT DOLLARS RESPECTIVELY USERS OF HIGHER SPEED MODEMS WILL SEE THEIR HOURLY RATES DROP TO NINE DOLLARS AND SIXTY CENTS FROM SIXTEEN DOLLARS COMPUSERVE'S MONTHLY FEE REMAINS UNCHANGED AT EIGHT DOLLARS AND NINETY FIVE CENTS WHILE COMPUSERVE HAS BEEN INTEGRATING LESS EXPENSIVE MICROPROCESSORS INDUSTRY INSIDERS SAY THE PRICE CUT REFLECTS A MORE COMPETITIVE MARKET BOTH APPLE COMPUTER INCORPORATED AND MICROSOFT CORPORATION RECENTLY ANNOUNCED THEIR ENTRY INTO THE ON LINE SERVICES MARKET WITH MORE COMPANIES EXPECTED TO JUMP INTO THE FRAY IN THE COMING MONTHS COMPUSERVE'S MAIN COMPETITORS PRODIGY SERVICES COMPANY AND AMERICA ONLINE INCORPORATED AREN'T PLANNING TO WAGE ANY PRICE WARS FEE STRUCTURES OF THESE SERVICES VARY SO WIDELY THAT IT IS QUOTE A NIGHTMARE TO COMPARE THEM QUOTE SAYS JOSH HARRIS AN ANALYST WITH JUPITER COMMUNICATIONS MR. HARRIS THINKS THE CUT IS TOO LITTLE THEY'RE GOING TO HAVE TO CUT MORE TO STAY COMPETITIVE HE SAID NEWS OF THE CUTS CAUSED STOCK OF AMERICA ONLINE TO FALL TWO DOLLARS AND FIFTY CENTS OR FOUR POINT EIGHT PERCENT TO FIFTY DOLLARS IN NASDAQ STOCK MARKET TRADING H. AND R. BLOCK SHARES CLOSED AT FORTY ONE POINT EIGHT SEVEN FIVE DOLLARS UP TWELVE POINT FIVE CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING PRODIGY IS A PARTNERSHIP OF INTERNATIONAL BUSINESS MACHINES CORPORATION AND SEARS ROEBUCK AND COMPANY AMERICA'S SOFT DRINK GIANTS ARE WASTING NO TIME PREPARING FOR THE END OF THE U. S. ECONOMIC EMBARGO AGAINST VIETNAM PEPSI COLA INTERNATIONAL PEPSICO INCORPORATED'S INTERNATIONAL SOFT DRINKS ARM HAS SIGNED A PRELIMINARY AGREEMENT WITH ONE OF VIETNAM'S LARGEST BEVERAGE COMPANIES TO BOTTLE SOFT DRINKS IN THAT COUNTRY FOR THE PAST FEW MONTHS PEPSI COLA INTERNATIONAL HAS HAD A SHIP LOADED WITH PEPSI CONCENTRATE BOTTLE CAPS CANS AND BOTTLES ANCHORED IN SINGAPORE AND AWAITING WORD IT CAN HEAD FOR VIETNAM ACCORDING TO BARRY SHEA A VICE PRESIDENT OF PEPSI COLA INTERNATIONAL ALREADY PREPARED IS PEPSI'S FIRST T. V. COMMERCIAL AIMED AT THE VIETNAMESE MARKET PRODUCED BY OGILVY AND MATHER AND FEATURING MISS VIETNAM IN MARCH OF NINETEEN NINETY THREE PEPSI GAVE THE FRANCHISE IN VIETNAM TO A JOINT VENTURE IN HO CHI MINH CITY PEPSI HAS NO EQUITY STAKE IN THE VENTURE CALLED INTERNATIONAL BEVERAGES COMPANY WHICH IS BETWEEN A VIETNAMESE COMPANY CALLED S. P. COMPANY AND A SINGAPORE COMPANY NAMED MACONDRAY AND COMPANY MEANWHILE ARCHRIVAL COCA COLA COMPANY IS ALSO BUSY PREPARING ITS FORMAL ENTRY INTO VIETNAM WHERE IT ALREADY ENJOYS WIDE DISTRIBUTION ON THE BLACK MARKET COKE AND SINGAPORE SOFT DRINKS COMPANY FRASER AND NEAVE LIMITED FORMED A JOINT VENTURE LAST MARCH WITH THAI PURE SOFT DRINKS LIMITED AS PART OF A STRATEGY TO TAP THE INDOCHINESE MARKET THE VENTURE WILL PRODUCE COKE AND OTHER SOFT DRINKS IN A RETOOLED HO CHI MINH CITY PLANT THAT COKE BUILT BEFORE THE VIETNAM WAR AND IN A NEW BOTTLING PLANT IN HANOI COKE ALSO HAS AN INTEREST IN A CAMBODIAN SOFT DRINKS COMPANY BASED IN PHNOM PENH VALUEVISION INTERNATIONAL INCORPORATED SEEKING TO CREATE WHAT IT SAID WOULD BE A QUOTE LEADER IN THE INTERACTIVE VIDEO SHOPPING MARKETPLACE OF THE FUTURE QUOTE LAUNCHED AN UNSOLICITED TEN DOLLAR A SHARE STOCK AND CASH BID FOR NATIONAL MEDIA CORPORATION THE BID BY THE NATION'S THIRD LARGEST HOME SHOPPING NETWORK HAS AN INDICATED VALUE OF ABOUT ONE HUNDRED SEVENTEEN POINT FIVE MILLION DOLLARS NATIONAL MEDIA A PHILADELPHIA BASED TELEVISION MARKETER HAD NO IMMEDIATE COMMENT VALUEVISION ALSO DISCLOSED THAT IT HAS COMPILED A NINE POINT EIGHT PERCENT NATIONAL MEDIA STAKE SINCE MID DECEMBER WHILE IT SAID IT SEEKS A FRIENDLY MERGER THE COMPANY HINTED IT ISN'T AVERSE TO MAKING A HOSTILE EFFORT VALUEVISION SAID IT HAD MORE THAN FIFTY MILLION DOLLARS IN CASH AND A DEBT FREE BALANCE SHEET AND IS CONFIDENT FINANCING COULD BE ARRANGED PROMPTLY UNDER TERMS OF THE PROPOSAL VALUEVISION WOULD PAY CASH FOR A FIFTY POINT ONE PERCENT STAKE IN NATIONAL MEDIA THE REMAINDER OF THE PURCHASE WOULD BE IN VALUEVISION CLASS A STOCK THE PROPOSAL IS SET TO EXPIRE AT FIVE OH ONE P. M. EASTERN TIME ON JANUARY TWENTY FIRST THE DISCLOSURE CAME AFTER THE MARKET'S CLOSE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING NATIONAL MEDIA SHARES CLOSED AT EIGHT DOLLARS AND TWENTY FIVE CENTS UP FIFTY CENTS OR SIX POINT FIVE PERCENT VALUEVISION'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERT L. JOHANDER SAID IN A LETTER TO NATIONAL MEDIA'S BOARD THAT BASED UPON THE OPPORTUNITIES FOR GROWTH IN THE TELEVISION HOME SHOPPING MARKET IN WHICH VALUEVISION OPERATES AND IN THE TELEVISION DIRECT RESPONSE INDUSTRY IN WHICH YOU COMPETE WE HAVE CONCLUDED THAT A COMBINATION WOULD BE IN THE BEST INTERESTS OF STOCKHOLDERS OF BOTH COMPANIES NATIONAL MEDIA OFFICIALS COULDN'T BE REACHED FOR COMMENT G. T. E. ANNOUNCED A ONE POINT EIGHT BILLION DOLLAR PRETAX CHARGE TO RESTRUCTURE AND CUT SEVENTEEN THOUSAND JOBS OR THIRTEEN PERCENT OF ITS WORK FORCE THE COMPANY SAID THE CHARGE SHOULD TRIM FOURTH QUARTER RESULTS BY ABOUT ONE POINT TWO BILLION DOLLARS AND TRIGGER A NET LOSS THE THREE YEAR STREAMLINING PLAN IS EXPECTED TO SAVE ONE BILLION DOLLARS ANNUALLY AS G. T. E. SLIMS DOWN AND PREPARES FOR COMPETITION IN THE MULTIMEDIA ARENA CITICORP PLANS TO TAKE SIX HUNDRED FOUR MILLION DOLLARS IN CHARGES TO REDUCE OPERATIONS AND PERSONNEL FURTHER AND TO SELL PART OF ITS QUOTRON UNIT TO REUTERS THE BANKING COMPANY ALSO SAID ITS NET INCOME MORE THAN DOUBLED IN THE FOURTH QUARTER CONSUMER PRICES ROSE ZERO POINT TWO PERCENT IN DECEMBER AND GAINED TWO POINT SEVEN PERCENT FOR NINETEEN NINETY THREE THE U. S. INFLATION OUTLOOK IS AS PROMISING AS IT HAS BEEN IN DECADES HOLDING BIG IMPLICATIONS FOR ECONOMIC DECISIONMAKING BY INDIVIDUALS AND CORPORATE AMERICA THAT HAS IN THE PAST HINGED ON A BELIEF THAT INFLATION IS INEVITABLE RETAIL SALES INCREASED ZERO POINT EIGHT PERCENT IN DECEMBER AND NINETEEN NINETY THREE SALES JUMPED SIX POINT TWO PERCENT THE STRONGEST ANNUAL GAIN IN FOUR YEARS SALES OF DURABLE GOODS ROSE ONE POINT SEVEN PERCENT LAST MONTH AS MANY CONSUMERS TOOK ADVANTAGE OF LOW INTEREST RATES TO IMPROVE OR FURNISH THEIR HOMES BOND PRICES FELL ON THE STRONGER THAN EXPECTED RETAIL SALES REPORT THE TREASURY'S THIRTY YEAR ISSUE FELL ALMOST ONE POINT ITS YIELD WAS SIX POINT TWO FIVE PERCENT THE DOW INDUSTRIALS DECLINED SIX POINT TWO OH TO THREE THOUSAND EIGHT HUNDRED FORTY TWO POINT FOUR THREE PRUDENTIAL SECURITIES AGREED TO PAY A FORMER TOP PARTNERSHIP BROKER TWO HUNDRED FIFTY THOUSAND DOLLARS TO SETTLE AN ARBITRATION CASE PEOPLE FAMILIAR WITH THE CASE SAY PRUDENTIAL WAS ACCUSED OF PRESSURING BROKERS TO SELL THE PARTNERSHIPS WITHOUT ADEQUATELY DISCLOSING THE RISKS AETNA'S BOARD IS WEIGHING POSSIBLE STEPS INCLUDING DECENTRALIZING ITS ORGANIZATION SPINNING OFF BUSINESSES AND LAYING OFF EMPLOYEES ACCORDING TO PEOPLE CLOSE TO THE TALKS ANALYSTS EXPECT A MOVE EARLY NEXT MONTH U. A. L.'S LABOR LED BUYOUT PROPOSAL IS OPPOSED BY SOME PILOT UNION MEMBERS THE AIRLINE'S PILOTS STAND TO GAIN THE LARGEST PROPORTION OF EMPLOYEE OWNED STOCK FORTY SIX POINT TWO PERCENT BUT ALSO FACE THE LARGEST REDUCTION IN PAY AS A GROUP FIFTEEN POINT SEVEN PERCENT THE S. E. C. IS EXAMINING PERSONAL TRADING RECORDS OF FIDELITY INVESTMENTS' PORTFOLIO MANAGERS TO DETERMINE IF THEY PROFITED FROM TRADING IN ADVANCE OF MUTUAL FUND TRANSACTIONS J. P. MORGAN'S FOURTH QUARTER EARNINGS WERE SHARPLY HIGHER PROPELLED BY RECORD TRADING REVENUES BANK OF NEW YORK WACHOVIA FIRST FIDELITY AND MELLON ALSO POSTED IMPROVED RESULTS WARNACO PLANS TO ACQUIRE CALVIN KLEIN'S UNDERWEAR BUSINESS IN A TRANSACTION VALUED AT CLOSE TO SEVENTY MILLION DOLLARS COOPER AND ITS FORMER CO CHAIRMAN WERE CONVICTED OF PARTICIPATING IN AN ILLEGAL JUNK BOND TRADING SCHEME THAT GENERATED THREE POINT FIVE MILLION DOLLARS IN PROFITS PROCTER AND GAMBLE DISCLOSED SOME OF THE DETAILS OF ITS RESTRUCTURING PROGRAM SAYING IT WOULD CLOSE FOUR PLANTS AND HALT PRODUCTION LINES AT SIX OTHERS THE MOVES ARE PART OF ITS PLAN TO SHUT THIRTY PLANTS AND CUT THIRTEEN THOUSAND JOBS WORLDWIDE ABOUT TWELVE PERCENT OF ITS WORK FORCE ALCAN ALUMINIUM SAID IT WILL TEMPORARILY CUT ABOUT NINE PERCENT OF ITS PRODUCTION CAPACITY REACTING TO THE GLOBAL GLUT THE MOVE COMES AS U. S. AND WESTERN EUROPEAN GOVERNMENTS PRESS RUSSIA FURTHER TO CURB ALUMINUM EXPORTS U. S. WEST RAISED ONE HUNDRED TWENTY FIVE MILLION DOLLARS FOR ITS RUSSIAN VENTURES AND CAME UP WITH A WAY TO REDUCE THE RISK OF DOING BUSINESS THERE BY PUTTING ALL OF ITS RUSSIAN OPERATIONS INTO A SEPARATE COMPANY AND THEN SELLING A MINORITY STAKE BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND FIVE HUNDRED NINETY FIVE POINT SIX ONE OFF FORTY EIGHT POINT FIVE FOUR COMMODITIES OIL FOURTEEN DOLLARS AND FIFTY ONE CENTS A BARREL UP EIGHTEEN CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY TWO POINT SEVEN TWO UP ONE POINT EIGHT ONE SPOT INDEX ONE HUNDRED TWENTY NINE POINT NINE THREE UP ONE POINT OH EIGHT DOLLAR ONE HUNDRED ELEVEN POINT SEVEN SIX YEN OFF ZERO POINT FOUR FOUR ONE POINT SEVEN FIVE OH FIVE MARKS UP ZERO POINT ZERO ONE SIX EIGHT FEW CHANGES UNNERVE MANAGERS MORE THAN THROWING OUT THE TRADITIONAL NINE TO FIVE WORK SCHEDULE OTHERS FEAR FLEXIBILITY WILL ROB THEM OF CONTROL QUOTE THE WHOLE IDEA OF FLEXIBILITY IS THAT YOU DON'T MAKE RIGID SCHEDULES QUOTE SAYS ANGELA PARSONS A STRIDE RITE CORPORATION CUSTOMER SERVICE MANAGER WHOSE DEPARTMENT IS ON FLEXIBLE SCHEDULES YOU HAVE TO GO WITH THE FLOW AND THAT'S SCARY BUT AS A GROWING NUMBER OF COMPANIES EXPERIMENT WITH BROAD MOVES TOWARD FLEXIBILITY THEY ARE DISCOVERING SOME KEY INGREDIENTS TO MAKING IT WORK FIRST WORK GOALS AND CRITERIA FOR SUCCESS MUST BE MADE CLEAR RESPONSIBILITY FOR PERFORMANCE AND TEAM EFFORT MUST BE SHIFTED TO EMPLOYEES AND THERE CAN BE NO TABOOS ON TALKING ABOUT PERSONAL OR FAMILY NEEDS IN THE WORKPLACE SINCE THESE ISSUES PLAY A BIG ROLE IN EMPLOYEES' ABILITY TO PITCH IN WHEN FLEXIBLE SCHEDULING SITUATIONS DEMAND IT SHORTLY AFTER HARRIS BANK SET A SWEEPING NEW ALTERNATIVE SCHEDULING POLICY MINERVA SOLANO GOT THE KIND OF FLEXTIME REQUEST EVERY MANAGER DREADS ONE EMPLOYEE A CLERICAL WORKER WHO PROCESSES BANKRUPTCY DOCUMENTS WANTED TO START HER EIGHT HOUR WORKDAY AT FIVE THIRTY A. M. CONCERNED ABOUT SAFETY MS. SOLANO A VICE PRESIDENT AND COLLECTION MANAGER DENIED THE REQUEST I THOUGHT IF THERE WAS AN EMERGENCY WHO WOULD BE HERE TO HELP HER MS. SOLANO SAYS BUT THE EMPLOYEE REBOUNDED WITH AN ARGUMENT OF HER OWN A FEW OTHER WORKERS INCLUDING SECURITY GUARDS ARE ALREADY AT THE BANK AT THAT HOUR SHE SAID BESIDES SHE COULD SAVE AN HOUR OF WORK TIME BY GAINING QUICKER ACCESS TO THE PRINTERS SHE NEEDED HER ARGUMENTS WERE VERY CREATIVE SAYS MS. SOLANO WHO AGREED TO TRY THE NEW SCHEDULE FLEXIBLE SCHEDULING WORKS BEST WHEN EMPLOYEES TAKE RESPONSIBILITY FOR MEETING THEIR OWN WORK GOALS AND SET THEIR OWN CRITERIA FOR SUCCESS TO HELP IMPLEMENT HARRIS'S POLICY KIMETHA WALTHER FIRPO A VICE PRESIDENT AND WORK AND LIFE PROGRAM COORDINATOR CREATED A NEW FORM THAT REQUIRES EMPLOYEES ASKING FOR FLEXTIME JOB SHARING COMPRESSED WORK WEEKS PART TIME OR WORK AT HOME ARRANGEMENTS TO EXPLAIN HOW THE CHANGE WOULD HELP THE COMPANY AND HOW THEIR WORK SHOULD BE EVALUATED THE THREE PAGE FORM IS SAVING MANAGERS TIME BY FORCING EMPLOYEES TO THINK THROUGH THEIR ROLE IN MEETING COMPANY OBJECTIVES OF EIGHTY THREE EMPLOYEE REQUESTS IN THE PAST FOUR MONTHS MANAGERS HAVE TURNED DOWN ONLY THREE SHIFTING RESPONSIBILITY TO EMPLOYEES ON FLEXIBLE SCHEDULES CAN ACTUALLY MAKE A MANAGER'S JOB EASIER WHEN MS. PARSONS' BOSS ASKED HER TO PUT HER DEPARTMENT ON FLEXIBLE SCHEDULES I WAS VERY NERVOUS SHE SAYS CONCERNED THAT HER GROUP'S NEW HOURS WOULD MAKE IT HARD TO COVER ABSENCES SHE POSTED ALPHABETICAL LISTS ASSIGNING EMPLOYEES TO BACK EACH OTHER UP IT WASN'T WORKING VERY WELL SHE SAYS THEN EMPLOYEES QUOTE CAME TO ME AND SAID ANGIE WHY DON'T WE JUST ASK WHO NEEDS THE EXTRA CASH QUOTE SHE SAYS THEIR PLAN WORKED OTHER COMMON FEARS EVAPORATE IN TIME THE WORRY THAT FLEXIBLE SCHEDULING WOULD TOUCH OFF A STAMPEDE FOR THE EXITS FOR INSTANCE WAS COMMON AT U. S. BANCORP SAYS TENORA GRIGSBY A CONSULTANT WHO IS WORKING WITH THE THE PORTLAND OREGON BANK HOLDING COMPANY BUT WHEN U. S. BANCORP MADE ALTERNATIVE SCHEDULES AVAILABLE TO ALL TWO HUNDRED EMPLOYEES IN ONE CUSTOMER SERVICE DEPARTMENT ONLY ABOUT TWENTY FIVE PERCENT SOUGHT TO CHANGE THEIR SCHEDULES MS. GRIGSBY SAYS AND FEARS OF SCHEDULING NIGHTMARES EVAPORATED SHIMANO INCORPORATED IS EXPORTING ITS WAY TO RECORD PROFITS JUST AS JAPAN'S BLUE CHIP MANUFACTURERS ARE REELING FROM A STRONG YEN THROUGH ITS AGGRESSIVELY INDEPENDENT STRATEGY SHIMANO WHICH IS BEST KNOWN FOR ITS BICYCLE GEAR SYSTEMS HAS SUCCESSFULLY TARGETED AND EXPLOITED A NICHE IN THE BOOMING GLOBAL MOUNTAIN BIKE BUSINESS IN THE PROCESS SHIMANO HAS OVERCOME AN ECONOMIC DOWNTURN THAT HAS HAMMERED SOME OF JAPAN'S BIGGEST MANUFACTURERS SHIMANO'S LEAN FAMILY RUN OPERATION HAS GOBBLED UP AN ESTIMATED SEVENTY PERCENT TO EIGHTY PERCENT OF THE GLOBAL MARKET FOR HIGH TECHNOLOGY BICYCLE PARTS AND THE STRONG YEN HASN'T EATEN INTO SHIMANO'S BUSINESS BECAUSE THERE ISN'T A WHOLE LOT OF COMPETITION IN ITS NICHE SHIMANO ON WEDNESDAY REPORTED THAT CONSOLIDATED PRETAX EARNINGS ROSE FORTY EIGHT PERCENT TO A RECORD TWENTY THREE POINT FIVE SEVEN BILLION YEN TWO HUNDRED NINE POINT FOUR MILLION DOLLARS FOR THE YEAR ENDED NOVEMBER TWENTIETH GLOBAL SALES ROSE EIGHTEEN PERCENT TO ONE HUNDRED SIXTY SEVEN POINT NINE EIGHT BILLION YEN AND EVEN IN THE GROUP'S SELF DESCRIBED QUOTE CONSERVATIVE QUOTE FORECAST PRETAX PROFIT IS EXPECTED TO CLIMB TEN PERCENT TO TWENTY SIX BILLION YEN IN THE NEW FISCAL YEAR ON SLIGHTLY HIGHER SALES OF ROUGHLY ONE HUNDRED SIXTY EIGHT POINT FIVE BILLION YEN SHIMANO SHARES HAVE BEEN GAINING GROUND BUT STILL TRADE AT ROUGHLY HALF THEIR RECORD HIGHS OF A FEW YEARS AGO WITH SHIMANO'S SHARES AT TWO THOUSAND NINE HUNDRED TWENTY YEN UP FORTY YEN IN WEDNESDAY'S TRADING IN TOKYO MANY ANALYSTS BELIEVE THE STOCK IS CHEAP CONSIDERING A GROWING GLOBAL INTEREST IN MOUNTAIN BIKING AS A HEALTHY POLLUTION FREE WAY OF HAVING A GOOD TIME SHIMANO IS PRODUCING A PRODUCT THAT IS RIGHT ON THE CURRENT OF A STRENGTHENING GLOBAL TREND TOWARD LEISURE AND HEALTH SAID HIROSHI YAMASHITA MANAGING DIRECTOR OF FIDELITY INVESTMENTS JAPAN LIMITED WHICH HOLDS AN UNDISCLOSED STAKE IN THE BIKE PARTS MAKER FOREIGN INVESTORS ARE TAKING NOTICE THE STAKE IN SHIMANO OWNED BY NON JAPANESE INVESTORS HAS GROWN TO BETWEEN FOURTEEN PERCENT AND FIFTEEN PERCENT ESTIMATES JONATHAN DOBSON AN ANALYST WITH JARDINE FLEMING SECURITIES IN TOKYO SHIMANO OFFICIALS ATTRIBUTE THEIR SUCCESS TO LESSONS LEARNED SEVERAL DECADES AGO WHEN THE THREE SHIMANO BROTHERS CURRENTLY CHAIRMAN PRESIDENT AND EXECUTIVE VICE PRESIDENT INHERITED THE COMPANY FROM THEIR FATHER IN THE EARLY NINETEEN SIXTIES BICYCLES WERE QUICKLY BECOMING AN OUTDATED MEANS OF TRANSPORTATION AS THE BROTHERS SOUGHT NEW MARKETS THEY FOUND IN THE U. S. A WHOLE GENERATION OF BIKERS PEDDLING FOR THE SAKE OF PEDDLING NOT AS A METHOD OF GETTING TO WORK OR THE MARKET SHIMANO HEADQUARTERS IN AN AREA OF OSAKA KNOWN FOR ITS BLACKSMITHS SOON TURNED INTO A HIGHLY EFFICIENT CENTER FOR RESEARCH AND DEVELOPMENT IN AN EFFORT TO KEEP THE COMPANY AHEAD IN THE MARKET FOR EVER IMPROVING GEARS BRAKES AND DERAILLEURS TODAY SHIMANO IS CASHING IN THE VAST MAJORITY OF MOUNTAIN BIKES SOLD IN EUROPE AND THE U. S. NOW COME FITTED WITH INCREASINGLY SOPHISTICATED SHIMANO BRAKES AND GEARS THAT OFFER THE PRECISION OF TOURING BIKES BUT CAN WITHSTAND THE POUNDING OF MOUNTAIN ROADS RECENTLY SHIMANO DEVELOPED INDEX GEAR CHANGERS THAT ALLOW THE BIKER TO SWITCH BETWEEN DOZENS OF GEAR CHOICES BY PUSHING A BUTTON MOUNTED ON THE HANDLE BARS THE NEXT TARGET IS CHINA WHERE SHIMANO RACKED UP ELEVEN BILLION YEN OR ROUGHLY SIX PERCENT OF WORLD WIDE SALES IN THE MOST RECENT FISCAL YEAR THE COMPANY ALREADY IS BUILDING A PARTS FACTORY OUTSIDE SHANGHAI THERE IS TREMENDOUS MOMENTUM NOW SAYS YOSHIZO SHIMANO EXECUTIVE VICE PRESIDENT AND ONE OF THE THREE BROTHERS WHO RUN THE FIRM KEN MARUYAMA AN ANALYST WITH U. B. S. SECURITIES LIMITED SAYS DEMAND FOR SHIMANO'S CUTTING EDGE SPEED REGULATING PRODUCTS ALREADY IS GROWING STRONGLY IN CHINA WHERE ONLY TEN PERCENT OR SO OF BIKES HAVE SOPHISTICATED GEARS AS NATIONAL WEALTH INCREASES CHINA WILL INCREASINGLY LOOM LARGE AS A MARKET MOREOVER MR. MARUYAMA SAYS THAT THE START OF CHINESE PRODUCTION WILL HELP SHIMANO'S COST CUTTING EFFORTS BECAUSE CHINESE LABOR COSTS ARE ONLY ONE TWENTY TH THAT OF JAPAN THE GEOTHERMAL POWER PLANT OPERATOR'S PRESIDENT RALPH BOEKER SIXTY YEARS OLD WAS APPOINTED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER SUCCEEDING PAUL PANKRATZ WHO CONTINUES AS CHAIRMAN THE LONDON STOCK EXCHANGE SELECTED JOHN KEMP WELCH AS ITS NEXT CHAIRMAN HOPING TO END A PERIOD OF UNCERTAINTY THAT BEGAN LAST SPRING WHEN ITS COMPUTERIZED SETTLEMENT SYSTEM PROJECT COLLAPSED MR. KEMP WELCH FIFTY SEVEN YEARS OLD CURRENTLY SENIOR PARTNER AT STOCKBROKERS CAZENOVE AND COMPANY WILL TAKE OVER JULY FOURTEENTH FROM THE EXCHANGE'S CURRENT CHAIRMAN SIR ANDREW HUGH SMITH SIXTY THREE WHO IS RETIRING MR. KEMP WELCH HAS SERVED AS A DIRECTOR OF THE EXCHANGE SINCE NINETEEN NINETY ONE HE BEGAN HIS CAREER WITH HOARE AND COMPANY IN NINETEEN FIFTY FOUR MOVING TO CAZENOVE AND COMPANY IN NINETEEN FIFTY NINE WHERE HE HAS BEEN EVER SINCE SIR ANDREW ALSO HAS BEEN ACTING CHIEF EXECUTIVE SINCE FORMER CHIEF EXECUTIVE PETER RAWLINS RESIGNED MARCH ELEVENTH AFTER THE EXCHANGE PULLED THE PLUG ON A THREE HUNDRED FIFTY MILLION FIVE HUNDRED TWENTY MILLION DOLLARS DECADE LONG PROJECT TO CREATE AN AUTOMATED SETTLEMENT SYSTEM CALLED TAURUS MOST OF THE WORK WAS UNSALVAGEABLE AND THE EXCHANGE POSTED A PRETAX LOSS OF ELEVEN POINT NINE MILLION FOR THE YEAR ENDED IN MARCH COMPARED WITH A YEAR EARLIER PRETAX PROFIT OF ONE POINT FIVE MILLION THE EXCHANGE LAST FALL APPOINTED MICHAEL LAWRENCE AS CHIEF EXECUTIVE EFFECTIVE FEBRUARY FIRST AMID HOPES HE WOULD SPUR THE BOURSE'S MODERNIZATION EFFORTS MR. LAWRENCE FIFTY THREE IS FINANCE DIRECTOR OF PRUDENTIAL CORPORATION BRITAIN'S LARGEST INSURER FOLLOWING THE TAURUS DEBACLE THE BANK OF ENGLAND TOOK OVER PRIMARY RESPONSIBILITY FOR THE CREATION OF A REPLACEMENT FOR THE SETTLEMENT SYSTEM BEFORE THE NEW SETTLEMENT SYSTEM DUBBED CREST BEGINS FUNCTIONING THE EXCHANGE PLANS TO MOVE IN JULY TO A TEN DAY QUOTE ROLLING QUOTE SETTLEMENT THIS CHANGE IS CONSIDERED A MAJOR IMPROVEMENT FROM THE CURRENT FOURTEEN DAY ACCOUNT PERIOD UNDER THE NEW SYSTEM TRADES WILL BE SETTLED CONTINUALLY ALBEIT WITH A TEN DAY DELAY INSTEAD OF BEING GROUPED TOGETHER AND SETTLED EVERY FOURTEEN DAYS COCA COLA UNVEILED ITS LONG AWAITED NEW DIET COKE ADVERTISING CAMPAIGN AND IT APPEARS THE SOFT DRINK MAKER BORROWED A CREATIVE PAGE FROM RIVAL DIET PEPSI THE APPROACH IS A RADICAL DEPARTURE FROM DIET COKE'S EARLIER ADVERTISING WHICH WAS INTRODUCED IN NINETEEN EIGHTY TWO WITH THE SUCCESSFUL QUOTE JUST FOR THE TASTE OF IT QUOTE SLOGAN SOME OF THE NEW DIET COKE SPOTS RELY ON SEX APPEAL ALBEIT WITH A WINK AND A NOD NOT UNLIKE COMMERCIALS FOR PEPSICO'S FLAGSHIP DIET BRAND PERHAPS NOT COINCIDENTALLY LEE GARFINKEL WHO WAS THE CREATIVE PERSONA BEHIND THE DIET PEPSI SPOTS IS NOW THE CREATIVE DIRECTOR AT DIET COKE'S NEW AGENCY THE ADS ARE THE FIRST CREATIVE WORK SINCE DIET COKE'S INEFFECTIVE TASTE IT ALL CAMPAIGN WAS INTRODUCED ON NEW YEAR'S DAY NINETEEN NINETY THREE THAT SERIES WHICH FEATURED MONTAGES OF MINISTERS WHO SURF SURGEONS WHO SCULPT INSURANCE AGENTS WHO SPEED ON MOTORCYCLES WAS YANKED AFTER ONLY SIX WEEKS THE SIXTY MILLION DOLLAR ACCOUNT WAS LATER PLACED IN REVIEW AND INTERPUBLIC GROUP'S LINTAS NEW YORK DIET COKE'S ONLY AD AGENCY SINCE THE BEVERAGE WAS INTRODUCED IN NINETEEN EIGHTY TWO WAS FIRED THE NEW AGENCY LOWE AND PARTNERS ANOTHER INTERPUBLIC AGENCY FACES THE CHALLENGE OF REVIVING THE BRAND'S SALES AS CONSUMERS ARE TURNING AWAY FROM DIET COLAS THE NEW DIET COKE SPOTS DON'T FOCUS ON CALORIES WHAT'S MORE THEY DON'T EVEN MENTION THE WORD TASTE WHICH WAS THE BACKBONE OF ALL PREVIOUS CAMPAIGNS WE USED TASTE AS A PLANK VERY EFFECTIVELY SAYS NANCY GIBSON DIET COKE'S WORLD WIDE BRAND DIRECTOR WE WANTED A NEW MESSAGE THE SPOTS ARE MEANT TO BE AMUSING VIGNETTES EACH FEATURES AN OLD POPULAR SONG RANGING FROM LOUIS ARMSTRONG'S QUOTE KISS TO BUILD A DREAM ON QUOTE TO THE BAND'S ROCK CLASSIC QUOTE THE WEIGHT QUOTE TO ETTA JAMES'S QUOTE I JUST WANNA MAKE LOVE TO YOU QUOTE THE SPOTS ARE SIMILAR TO THE APPROACH TAKEN BY CREATIVE ARTISTS AGENCY THE HOLLYWOOD TALENT AGENCY THAT PRODUCED VIRTUALLY ALL OF THE ALWAYS ADS FOR COCA COLA CLASSIC THAT IS THERE ISN'T ONE JINGLE OR STORY LINE MOREOVER THE ADS SEEM UNRELATED TO EACH OTHER IN ONE A GAGGLE OF FEMALE SECRETARIES WHISPER TO ONE ANOTHER THAT IT IS ELEVEN THIRTY A. M. TIME FOR THEIR DIET COKE BREAK THEY RUSH TO A WINDOW WHERE THEY CAN STARE AT A WELL CHISELED CONSTRUCTION WORKER TAKING OFF HIS SHIRT HE'S ON A BREAK GUZZLING DOWN THE SOFT DRINK THE WOMEN ARE PANTING THEY PROMISE TO LOOK AGAIN TOMORROW ANOTHER AD SHOWS A WOMAN PULLING UP TO A BILLIARD HALL IN A SLEEPY DUSTY RURAL TOWN SHE UNLOADS HER BOYFRIEND'S POSSESSIONS THROWING THEM AT HIM WHILE PUZZLED SENIOR CITIZENS LOOK ON THEN SHE CHUGS A DIET COKE TRIUMPHANTLY SPEEDING AWAY A THIRD SPOT SHOWS A BELLHOP KNOCKING ON THE DOOR OF A HONEYMOON SUITE WITH A DELIVERY OF TWO CANS OF THE SOFT DRINK ON ICE HE MAKES THE TRIP FOUR TIMES EACH TIME TO BE GREETED JUST BY THE HANDS OF A MAN GRABBING THE SODA UNLIKE PREVIOUS DIET COKE SPOTS WITH CELEBRITIES THAT INCLUDED ELTON JOHN AND PAULA ABDUL THE NEW COMMERCIALS ARE DECIDEDLY FREE OF WELL KNOWN PERSONALITIES WITH ONE EXCEPTION BOXER EVANDER HOLYFIELD APPEARS IN ONE AD TO THE UNLIKELY TUNE OF MAMA CASS ELLIOT CROONING DREAM A LITTLE DREAM OF MAINE EACH SPOT ENDS WITH THE SLOGAN THIS IS REFRESHMENT THE NEW CAMPAIGN RESULTED FROM EXTENSIVE RESEARCH WITH CONSUMERS WHO FELT THAT DIET COKE DOESN'T MEAN FAME AND FORTUNE SAYS MS. GIBSON INSTEAD THE BEVERAGE IS A BRIEF IMPORTANT REFRESHING MOMENT TO THEIR DAY FAME AND FORTUNE WERE THE LINCHPINS OF PREVIOUS DIET COKE ADS QUOTE TASTE IT ALL WAS BUILT ON WANTING IT ALL QUOTE SAYS MS. GIBSON THIS IS BUILT ON WHAT WE HAVE SHE SAYS THAT TASTE IT ALL WASN'T AS EFFECTIVE AS WE WANTED IT TO BE IN FACT COKE BOTTLERS DISTINCTLY DISLIKED THE CAMPAIGN DIET COKE SAYS MS. GIBSON NOW EXISTS IN A DIFFERENT WORLD FROM WHEN IT WAS INTRODUCED THE FOCUS NOW IS ON THE SIMPLER PLEASURES WITH FAMILIES AND FRIENDS SHE SAYS CONSUMERS DRINK DIET COKE WHEN THEY WANT TO PUSH THE HOLD BUTTON ON THE WORLD TO TAKE A MENTAL BREAK THE IDEA OF DIET COKE IS THAT IT IS AN IMPORTANT MOMENT OF REFRESHMENT IN THE COURSE OF A HECTIC DAY QUOTE AN INDUSTRY OFFICIAL WHO DIDN'T WANT TO BE QUOTED BY NAME SAYS THESE NEW ADS ARE BEING MET WITH LITTLE ENTHUSIASM FROM BOTTLERS MS. GIBSON SAYS SHE VIGOROUSLY OBJECTS TO THAT ALLEGATION THE RESPONSE IS STRONG SHE SAYS FROM THE BOTTLER TO THE ROUTE DRIVERS IT WILL BE HARD TO AVOID THE NEW SPOTS WHICH WILL BEGIN AIRING ON TURNER BROADCASTING SYSTEM'S T. B. S. SUPER CHANNEL JANUARY TWENTY SECOND DURING THE GOLDEN GLOBE AWARDS SOME OF THE PRIME TIME SHOWS FOR WHICH DIET COKE BOUGHT TIME ARE NORTHERN EXPOSURE MURPHY BROWN SEINFELD AND MELROSE PLACE ALTHOUGH MS. GIBSON DECLINES TO COMMENT ON THE AD BUDGET IT IS EXPECTED TO BE AN INCREASE FROM THE PREVIOUS SIXTY MILLION DOLLARS IN THE WINTER OLYMPICS ALONE DIET COKE PURCHASED ONE HUNDRED FIFTEEN SPOTS DIET COKE PRODUCED A WHIMSICAL SPOT ESPECIALLY FOR THE OLYMPICS WHICH SHOWS A VIDEOTAPE OF A FOUR MEMBER LUGE TEAM SPEEDING DOWN THE COURSE WHEN THE TAPE IS SHOWN IN SLOW MOTION THE TEAM IS SEEN CHUGGING DOWN DIET COKES AND MUGGING TO THE CAMERA SALES OF BOTH DIET COKE AND DIET PEPSI HAVE SLIPPED RECENTLY SUPERMARKET SALES OF DIET COKE FELL ONE POINT FOUR PERCENT TO EIGHT HUNDRED EIGHTY THREE POINT FIVE MILLION DOLLARS IN THE FORTY WEEK PERIOD ENDED OCTOBER THIRD NINETEEN NINETY THREE ACCORDING TO INFORMATION RESOURCES' INFOSCAN SERVICE DIET PEPSI FARED WORSE SLIPPING SIX PERCENT TO SIX HUNDRED FOURTEEN POINT SIX MILLION DOLLARS WHAT WE'RE SEEING IS MASSIVE FLOOR DROPPING OUT OF THE DIET MARKET AND THE MARKET DRYING UP SAYS JESSE MEYERS PUBLISHER OF BEVERAGE DIGEST IN OLD GREENWICH CONNECTICUT AS THE BABY BOOMER GENERATION HAS GROWN IT HAS GONE FROM BEVERAGE TO BEVERAGE WITH NO LOYALTY THEY HAVE GONE FROM TEAS WATERS SPORTS DRINKS AND JUICE ADDED BEVERAGES BUT THE GENERATION HASN'T LANDED TO ONE OF THESE THE MARKET SPLINTERED AND THE DIET SOFT DRINK CATEGORY SUFFERED THE MOST QUOTE ADVERTISING ISN'T THE ONLY MARKETING TOOL THAT'S CHANGING AT DIET COKE THE BEVERAGE'S BOTTLES AND CANS ARE UNDERGOING A REDESIGN BY YET ANOTHER AD AGENCY FALLON MCELLIGOTT NO DATE HAS BEEN GIVEN FOR WHEN THE FACELIFT WILL BE READY THERE AREN'T ANY PLANS TO PLASTER DIET COKE'S NEW SLOGAN ON THE CANS THE WAY TASTE IT ALL WAS FOR A SHORT TIME LAST YEAR MS. GIBSON SAYS DIET COKE TESTED THE NEW COMMERCIALS WITH AUDIENCES INCLUDING ON AIR TESTING IN TWO CITIES AND RECEIVED FAVORABLE RESPONSE THE NEW CAMPAIGN WILL BE IN ALL ENGLISH SPEAKING COUNTRIES IN NON ENGLISH SPEAKING REGIONS THE DIET PRODUCT IS CALLED COKE LIGHT MAGAZINE ADVERTISING PAGES INCREASED ONE PERCENT IN NINETEEN NINETY THREE ACCORDING TO THE PUBLISHERS INFORMATION BUREAU A YEAR IN WHICH MANY PUBLISHERS BELIEVED TOTAL ADVERTISING WOULD SHRINK THE TINY BUT WELCOME GAIN INCLUDED TWO CONSECUTIVE QUARTERS OF DECLINE ADVERTISING PAGES WHICH HAD SLUMPED IN THE SECOND AND THIRD QUARTERS REBOUNDED IN THE FOURTH REVENUE FROM ADVERTISING IN NINETEEN NINETY THREE WAS UP SIX PERCENT TO SEVEN POINT SIX TWO BILLION DOLLARS THE NINETEEN NINETY THREE PACE WAS SLOWER THAN IN NINETEEN NINETY TWO WHEN AD PAGES HAD INCREASED TWO POINT FOUR PERCENT AND AD REVENUE HAD RISEN EIGHT POINT ONE PERCENT THE BIGGEST REVENUE GAINS CAME FROM ADVERTISERS IN DRUGS AND REMEDIES TWENTY TWO POINT NINE PERCENT BUSINESS AND CONSUMER SERVICES TWENTY POINT FIVE PERCENT DIRECT RESPONSE SIXTEEN POINT SIX PERCENT AND RETAIL SIXTEEN POINT THREE PERCENT THE SMALLEST GAINS CAME FROM AUTOMOTIVE ADVERTISERS ONE POINT EIGHT PERCENT FOOD ONE POINT EIGHT PERCENT AND APPAREL THREE PERCENT SUPER BOWL SPOT NORWEGIAN CRUISE LINE JOINS THE LIST OF ADVERTISERS WHO HAVE PLUNKED DOWN NINE HUNDRED THOUSAND DOLLARS FOR THIRTY SECONDS OF AD TIME DURING THE SUPER BOWL BROADCAST NORWEGIAN A UNIT OF KLOSTER CRUISE LIMITED IS BROADCASTING TWO THIRTY SECOND SPOTS FROM OMNICOM GROUP'S GOODBY BERLIN AND SILVERSTEIN PART OF A THIRTY MILLION DOLLAR CAMPAIGN CALLED IT'S DIFFERENT OUT HERE TO MAKE SURE NO SUCKER IS SPARED BECOMES A MENTAL BLOCK LINDA R. WUDL DIRECTOR OF QUALITY CONTROL WAS NAMED TO THE POST OF VICE PRESIDENT QUALITY ASSURANCE WITH THIS BIOTECHNOLOGY CONCERN DOCTOR WUDL FORTY EIGHT YEARS OLD SUCCEEDS DARYL HILL WHO EARLIER WAS APPOINTED SENIOR VICE PRESIDENT ASIA PACIFIC STEVEN G. CHRUST FORTY THREE YEARS OLD WAS ELECTED A DIRECTOR OF THIS LONG DISTANCE CARRIER EXPANDING THE BOARD TO SIX MEMBERS MR. CHRUST IS PRESIDENT OF S. G. C. ADVISORY SERVICES INCORPORATED A STAMFORD CONNECTICUT MONEY MANAGEMENT COMPANY STUART DEITEL FORTY FIVE YEARS OLD WAS NAMED VICE PRESIDENT BUSINESS DEVELOPMENT AT THIS PHARMACEUTICAL PRODUCTS MANUFACTURER MR. DEITEL SUCCEEDS WILLIAM TAAFFE WHO LEFT THE COMPANY TO BECOME PRESIDENT OF ICON CLINICAL RESEARCH INCORPORATED A DRUG RESEARCH COMPANY BASED IN LIMERICK PENNSYLVANIA EMMANUEL HERNANDEZ THIRTY EIGHT YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS MICROCHIP MAKER MR. HERNANDEZ PREVIOUSLY CYPRESS'S CONTROLLER SUCCEEDS PATRICK VERDERICO FORTY NINE WHO IS LEAVING CYPRESS TO BECOME CHIEF FINANCIAL OFFICER OF CREATIVE TECHNOLOGY LIMITED MILPITAS CALIFORNIA AS PREVIOUSLY ANNOUNCED NORTHERN TELECOM LIMITED STRUGGLING TO SHORE UP ITS U. S. BUSINESS LOST A KEY EXECUTIVE TO ARCHRIVAL AMERICAN TELEPHONE AND TELEGRAPH COMPANY GERRY J. BUTTERS FIFTY YEARS OLD THE PRESIDENT OF THE CANADIAN COMPANY'S U. S. UNIT NORTHERN TELECOM INCORPORATED WAS NAMED VICE PRESIDENT OF BUSINESS DEVELOPMENT AT A. T. AND T.'S NETWORK SYSTEMS UNIT A NEW POSITION THE A. T. AND T. UNIT IS NORTHERN TELECOM'S MAIN RIVAL IN THE U. S. MARKET FOR SWITCHING AND TRANSMISSION EQUIPMENT QUOTE GERRY'S A LOSS QUOTE A NORTHERN TELECOM SPOKESMAN ACKNOWLEDGED QUOTE BUT NORTHERN'S TURNAROUND ISN'T GOING TO DEPEND ON ONE INDIVIDUAL QUOTE NORTHERN TELECOM ALSO NAMED ONE OF ITS BOARD MEMBERS DONALD J. SCHUENKE CHAIRMAN OF THE U. S. UNIT THE TORONTO BASED TELECOMMUNICATIONS EQUIPMENT MAKER SAID MR. SCHUENKE'S APPOINTMENT WILL BECOME EFFECTIVE FEBRUARY FIRST PREVIOUSLY CHIEF EXECUTIVE OFFICER OF NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY OF MILWAUKEE MR. SCHUENKE REMAINS CHAIRMAN OF THE INSURANCE COMPANY UNTIL THE END OF THIS MONTH HE SUCCEEDS ROY MERRILLS FIFTY NINE WHO WILL RETIRE IN MARCH MR. SCHUENKE HAS BEEN A MEMBER OF NORTHERN TELECOM'S BOARD FOR A DECADE AND WILL BE RESPONSIBLE FOR PLANNING THE U. S. UNIT'S STRATEGY NORTHERN TELECOM PLAGUED BY SOFTWARE PROBLEMS AND DELIVERY DELAYS TO THE BABY BELLS HAS LOST MARKET SHARE TO A. T. AND T. IN THE HOTLY COMPETITIVE SIX BILLION DOLLARS U. S. MARKET FOR DIGITAL SWITCHING SYSTEMS NORTHERN HAS CUT BACK MANUFACTURING AND CLOSED OR CONSOLIDATED SEVERAL PLANTS THE PARENT NORTHERN TELECOM LIMITED RECENTLY CONSOLIDATED INTO TWO GROUPS UNDER ITS NEW CHIEF EXECUTIVE JEAN MONTY THE COMPANY'S U. S. UNIT IS PART OF ONE OF THE GROUPS NORTEL NORTH AMERICA THE OTHER GROUP IS NORTEL WORLD TRADE THE COMPANY ALSO NAMED DAVID A. TWYVER FORTY SEVEN PRESIDENT OF WIRELESS SYSTEMS SUCCEEDING JOHN A. ROTH FIFTY ONE NOW PRESIDENT OF NORTEL NORTH AMERICA MR. TWYVER WAS PREVIOUSLY GROUP VICE PRESIDENT WIRELESS SYSTEMS BANKRUPTCY FILINGS IN NINETEEN NINETY THREE BY BUSINESSES AND INDIVIDUALS IN SWITZERLAND EXCEEDED TEN THOUSAND FOR THE FIRST TIME ACCORDING TO SCHWEIZERISHER VERBAND CREDITREFORM A PRIVATE CREDIT MONITORING AGENCY THE NUMBER OF BUSINESSES FILING FOR BANKRUPTCY SURGED SIXTEEN PERCENT TO SIX THOUSAND FOURTEEN FROM FIVE THOUSAND ONE HUNDRED NINETY FIVE IN NINETEEN NINETY TWO WHILE THE NUMBER OF INDIVIDUALS FILING CLIMBED TWO POINT SIX PERCENT TO FOUR THOUSAND FOUR HUNDRED NINETY NINE FROM FOUR THOUSAND THREE HUNDRED EIGHTY THREE TOTAL BANKRUPTCY FILINGS ROSE NINE POINT EIGHT PERCENT TO TEN THOUSAND FIVE HUNDRED THIRTEEN FROM NINE THOUSAND FIVE HUNDRED SEVENTY EIGHT SIR CHRISTOPHER HARDING CHAIRMAN OF BUSINESS SERVICES CONCERN BET P. L. C. WAS NAMED CHAIRMAN OF THIS LIFE INSURANCE CONCERN MR. HARDING FIFTY FOUR YEARS OLD SUCCEEDS SIR JAMES BALL WHO HAS ANNOUNCED HIS INTENTION TO RETIRE AT AGE SIXTY HE TURNED SIXTY IN JULY AN ASSISTANT FOR MR. HARDING SAID THE EXECUTIVE HAS NO PLANS TO RESIGN AS CHAIRMAN OF BET BUT WILL ACT AS CHAIRMAN OF BOTH COMPANIES THIS CABLE AND CELLULAR COMMUNICATIONS SYSTEMS OPERATOR NAMED TWO DIVISION DIRECTORS AS VICE PRESIDENTS THOMAS A. HURLEY THIRTY THREE YEARS OLD WAS NAMED VICE PRESIDENT OF PROGRAMMING AND JONATHAN R. GORCHOW THIRTY THREE BECOMES VICE PRESIDENT OF SALES PROMOTION ALSO MICHAEL H. YOUNG FORTY VICE PRESIDENT OF PROGRAMMING WAS NAMED SENIOR VICE PRESIDENT AND THOMAS R. NATHAN FORTY DEPUTY GENERAL COUNSEL WAS NAMED A VICE PRESIDENT THE ECONOMIC SLOWDOWN IS PITTING JAPANESE BUREAUCRATS WHO WANT TO BUILD A BETTER TOMORROW AGAINST CORPORATIONS THAT JUST WANT TO MAKE IT THROUGH TODAY JAPAN'S LABOR MINISTRY WORRIED ABOUT THE DAY EARLY IN THE TWENTY FIRST CENTURY WHEN ONE OUT OF FOUR JAPANESE WILL BE SENIOR CITIZENS WANTS TO PUSH THROUGH LEGISLATION THAT WILL KEEP PEOPLE ON THE JOB AS LONG AS POSSIBLE THE GOAL IS TO CREATE REVENUE TO HELP PAY INCREASINGLY HEFTY HOSPITAL BILLS AS JAPAN'S BABY BOOMER GENERATION AGES BUSINESSES HOWEVER ARE STUCK NOW WITH BLOATED PAYROLLS AMID THE WORST ECONOMIC SLUMP IN DECADES AND ARE PUSHING WORKERS INTO EARLY RETIREMENT THE ISSUE MADE THE HEADLINES THIS WEEK AFTER EXECUTIVES OF OKUMA CORPORATION A MACHINE TOOL MAKER BASED IN JAPAN'S NORTHERN AICHI PREFECTURE WERE CALLED INTO A REGIONAL BRANCH OF THE LABOR MINISTRY TO EXPLAIN THEIR DECISION TO LOWER THE COMPANY'S MANDATORY RETIREMENT AGE TO FIFTY SIX FROM SIXTY TO BE PUBLICLY CALLED IN BY THE BUREAUCRATS IN SUCH A FASHION IS THE JAPANESE CORPORATE EQUIVALENT OF BEING PILLORIED IN THE TOWN SQUARE QUOTE THIS RUNS COUNTER TO THE POLICIES WE ARE TRYING TO PURSUE AS JAPAN'S SOCIETY AGES QUOTE SAID A LABOR MINISTRY SPOKESMAN THE MINISTRY IS PREPARING TO SUBMIT TO PARLIAMENT IN ITS SPRING SESSION A BILL THAT WOULD MAKE IT LEGALLY BINDING FOR COMPANIES TO KEEP THE RETIREMENT AGE AT SIXTY LABOR MINISTRY STATISTICS SHOW THAT NINETY FOUR POINT FOUR PERCENT OF JAPANESE COMPANIES STILL HAVE A RETIREMENT AGE OF SIXTY MINISTRY OFFICIALS SAY THEY WOULD PREFER COMPANIES TO PURSUE A POLICY OF VOLUNTARY RETIREMENTS RATHER THAN ACROSS THE BOARD REDUCTIONS IN RETIREMENT AGES SO AS TO KEEP MORE PEOPLE ON THE JOB BUT THAT'S SOMETHING A LOT OF COMPANIES CURRENTLY CAN'T AFFORD OKUMA POSTED A PRE TAX LOSS OF FIVE POINT SEVEN BILLION YEN FIFTY POINT SIX MILLION DOLLARS IN THE YEAR ENDED MARCH NINETEEN NINETY THREE AND TOYO KEIZAI A JAPANESE RESEARCH CONCERN EXPECTS OKUMA TO POST A LOSS OF FIVE POINT EIGHT BILLION YEN IN THE CURRENT FISCAL YEAR WE'VE BEEN HIT HARD BY SLACK DEMAND FOR OUR PRODUCTS IN JAPAN AND THE STRONG YEN HAS HURT OUR EXPORTS SAID AN EXECUTIVE OF OKUMA WHICH SAYS IT PLANS TO PROCEED WITH THE PLAN DESPITE THE MINISTRY'S OBJECTIONS WE HOPE TO RAISE THE RETIREMENT AGE BACK TO SIXTY AS SOON AS WE COMPLETE RESTRUCTURING HE SAID THE EXECUTIVES DECLINED TO SAY HOW MANY WORKERS ARE LIKELY TO BE AFFECTED BY THE LOWER RETIREMENT AGE OTHER COMPANIES ARE ALSO SUFFERING FROM THE SAME HARDSHIPS AS A RESULT LABOR ISSUES MAKE NEWS IN JAPAN ON A DAILY BASIS THESE DAYS IN THE LATEST DEVELOPMENT JAPAN'S FEDERATION OF EMPLOYERS ASSOCIATIONS SAID WEDNESDAY THAT WORKERS WON'T BE OFFERED A WAGE INCREASE DURING THE ANNUAL SPRING NEGOTIATIONS THIS YEAR THE JAPANESE TRADE UNION CONFEDERATION COUNTERED ON THE EVENING NEWS WITH A PROMISE TO FIGHT FOR AS MUCH AS IT CAN GET SETTING THE STAGE FOR MORE LABOR DISPUTES MARK S. BRANDIN FORTY THREE YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT MARKETING AND ADVERTISING OF THIS COMPANY'S QUICK AND REILLY INCORPORATED DISCOUNT BROKERAGE UNIT MR. BRANDIN MOST RECENTLY EXECUTIVE VICE PRESIDENT CAPITAL MARKETS SLASH TRADING AT DISCOUNT BROKER CHARLES SCHWAB AND COMPANY SUCCEEDS WILLIAM A. COPPEL MR. COPPEL THIRTY EIGHT WAS NAMED VICE PRESIDENT OF CORPORATE ADMINISTRATION AND SPECIAL PROJECTS FOR QUICK AND REILLY INCORPORATED MINNESOTA MINING IS CLEANING UP IN THE EIGHTY YEAR OLD SOAP PAD BUSINESS BY APPLYING SPACE AGE TECHNOLOGY TO THE VEXING PROBLEM OF REMOVING BURNT MACARONI AND CHEESE BY TAPPING INTO ITS EXPERTISE IN ABRASIVES MINNESOTA MINING AND MANUFACTURING COMPANY'S NEW NEVER RUST WOOL PADS GRABBED A SIZABLE CHUNK OF THE ONE HUNDRED TWENTY MILLION DOLLAR BUSINESS LAST YEAR LARGELY AT THE EXPENSE OF ITS TWO MAIN COMPETITORS MILES INCORPORATED'S S. O. S. PADS AND DIAL CORPORATION'S BRILLO PADS ACCORDING TO INFORMATION RESOURCES INCORPORATED'S INFOSCAN SERVICE FOR THE FIFTY TWO WEEKS ENDED DECEMBER FIFTH SALES OF THREE M'S SCOTCH BRITE NEVER RUST SOAP PADS IN SUPERMARKETS INCREASED NINETY ONE POINT EIGHT PERCENT TO EIGHTEEN POINT FIVE MILLION DOLLARS OR FIFTEEN POINT FOUR PERCENT OF THE CATEGORY ACCORDING TO INFOSCAN S. O. S. SALES DROPPED ONE POINT FOUR PERCENT TO FORTY THREE POINT FIVE MILLION DOLLARS OR THIRTY SIX POINT TWO PERCENT OF THE MARKET WHILE BRILLO SALES FELL SIX POINT EIGHT PERCENT TO EIGHTEEN POINT THREE MILLION DOLLARS OR FIFTEEN POINT TWO PERCENT MARKET SHARE MINNESOTA MINING'S CONSUMER RESEARCH HAD SHOWN THAT RUSTY SOAP PADS WERE A MAJOR SOURCE OF ANGST AMONG HOMEMAKERS SPARKING THE CREATION OF NEVER RUST PADS NOW THREE M. SCIENTISTS ARE GETTING READY TO MARKET A STEEL WOOL TYPE PAD THAT DOESN'T SCRATCH NONSTICK COOKWARE WHICH ACCOUNT FOR NEARLY THREE QUARTERS OF ALL POTS AND PANS SOLD MINNESOTA MINING EXPECTS THE NEW PRODUCT TO INCREASE THE LACKLUSTER CATEGORY'S SALES BY FIFTEEN PERCENT A YEAR QUOTE THERE HAD BEEN NO INNOVATION IN THE CATEGORY QUOTE SINCE BRILLO INTRODUCED SOAP IMPREGNATED PADS IN NINETEEN SEVENTEEN SAYS MOE NOZARI VICE PRESIDENT OF THREE M'S CONSUMER MARKETS DIVISION MINNESOTA MINING PLANS TO KEEP THE PRESSURE ON WITH MR. NOZARI PROMISING MAJOR PRODUCT INTRODUCTIONS IN EACH OF THE NEXT THREE YEARS MINNESOTA MINING ALSO GREATLY OUTSPENT ITS RIVALS IN ADVERTISING LAST YEAR MR. NOZARI ESTIMATES THAT THREE M'S THIRTY MILLION DOLLAR AD BUDGET FOR SOAP PADS WAS FOUR TIMES THAT OF ITS TWO LARGEST RIVALS COMBINED THE MARKET LEADERS HAVE BEEN ASLEEP AT THE SWITCH SAYS JACK TROUT PRESIDENT OF TROUT AND RIES A GREENWICH CONNECTICUT MARKETING CONSULTING COMPANY YOU'VE GOT A BUNCH OF GUYS SITTING ON THEIR HANDS UNWILLING TO ATTACK THEMSELVES WITH A NEW IDEA THIS SCRATCH PROOF PAD IS A CLASSIC NEXT GENERATION PRODUCT NOT SURPRISINGLY RIVALS AREN'T EFFUSIVE ABOUT THREE M'S PATENT PENDING NO SCRATCH TECHNOLOGY I DON'T THINK IT'S THE GREATEST THING SINCE SLICED BREAD GRUMPS ANDREW REICHLIN MARKETING MANAGER FOR CLEANING PRODUCTS AT DIAL THE MAKER OF BRILLO BUT DIAL HAS ALREADY DROPPED THE PRICE AND INCREASED THE SIZE OF A SIMILAR PRODUCT AND IT MAY BE GEARING UP TO MATCH THREE M'S TECHNOLOGY HEAD ON WE HAVE AGGRESSIVE PLANS IS ALL MR. REICHLIN WILL SAY MINNESOTA MINING'S OTHER MAIN RIVAL MILES THE MAKER OF MARKET LEADER S. O. S. HAS TAKEN A DIFFERENT TACK ALTOGETHER CHEATING THEN BAILING OUT OF THE BUSINESS ENTIRELY LAST OCTOBER MILES AGREED TO PAY A FOUR POINT FIVE MILLION DOLLAR FINE AND PLEADED GUILTY TO ATTEMPTING TO ESTABLISH A PRICE FIXING SCHEME WITH DIAL DIAL INFORMED THE JUSTICE DEPARTMENT OF THE SCHEME AND COOPERATED WITH THE INVESTIGATION EARLIER THIS MONTH MILES AGREED TO SELL S. O. S. TO CLOROX COMPANY FOR AN AMOUNT THAT WASN'T DISCLOSED THE DEAL IS EXPECTED TO CLOSE NEXT MONTH MILES WON'T DISCUSS THE PRICE FIXING CASE BUT PEOPLE CLOSE TO THREE M. SAY THAT MILES ATTEMPTED THE SCHEME OUT OF CONCERN OVER THREE M'S STEPPED UP PRESENCE UNEMPLOYMENT IN BRITAIN FELL TO A SEASONALLY ADJUSTED NINE POINT EIGHT PERCENT OF THE WORK FORCE IN DECEMBER FROM TEN PERCENT IN NOVEMBER ACCORDING TO PROVISIONAL ESTIMATES RELEASED BY THE U. K. DEPARTMENT OF EMPLOYMENT THE NUMBER OF SEASONALLY ADJUSTED JOBLESS WAS ESTIMATED TO HAVE FALLEN FORTY SIX THOUSAND EIGHT HUNDRED DURING DECEMBER AFTER DROPPING A REVISED THIRTY NINE THOUSAND IN NOVEMBER FASHION DESIGNER BILL BLASS PLEDGED TEN MILLION DOLLARS TO THE NEW YORK PUBLIC LIBRARY ONE OF ITS LARGEST GIFTS EVER THE INSTITUTION ANNOUNCED HALF OF THE CONTRIBUTION IS EARMARKED FOR NEW TECHNOLOGY STAFF AND SERVICES IN THE PUBLIC CATALOG ROOM WITH THE REMAINDER GOING TO UNRESTRICTED ENDOWMENT THE CATALOG ROOM AT THE MIDTOWN MANHATTAN LANDMARK WILL BE NAMED AFTER MR. BLASS WHO HAS BEEN A LIBRARY TRUSTEE SINCE NINETEEN EIGHTY SIX WILLIAM J. SCOTT SENIOR FIFTY YEARS OLD FORMERLY PRESIDENT OF A. B. B. ENVIRONMENTAL SYSTEMS A UNIT OF ASEA BROWN BOVERI INCORPORATED WAS NAMED SENIOR VICE PRESIDENT OF THIS MAKER OF MINING EQUIPMENT AND AIR POLLUTION AND ASH HANDLING EQUIPMENT AS WELL AS PRESIDENT OF JOY'S ENVIRONMENTAL GROUP ONE OF THE COMPANY'S TWO MAIN BUSINESSES HE SUCCEEDS BRIAN J. WATT WHO RESIGNED FROM THE TWO POSTS AT JOY IN AUGUST NINETEEN NINETY THREE TO PURSUE OTHER INTERESTS LAURA T. KIRSNER FORTY EIGHT YEARS OLD WAS NAMED VICE PRESIDENT AND CONTROLLER OF THIS RETAILER EFFECTIVE FEBRUARY FIRST MS. KIRSNER ASSISTANT CONTROLLER SINCE NINETEEN EIGHTY THREE SUCCEEDS THOMAS E. PAGE SIXTY FIVE WHO IS RETIRING SEPARATELY PHILIP H. GEIER JUNIOR FIFTY EIGHT WAS NAMED A DIRECTOR EFFECTIVE FEBRUARY NINTH MR. GEIER CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE INTERPUBLIC GROUP OF COMPANIES FILLS A VACANCY ON THE TWELVE MEMBER BOARD SPAIN'S CHIEF PUBLIC PROSECUTOR SAID HE WILL REQUEST INFORMATION FROM THE BANK OF SPAIN AS THE FIRST STEP IN AN INVESTIGATION INTO WHETHER THE FORMER MANAGEMENT OF BANCO ESPANOL DE CREDITO COMMITTED ANY WRONGDOING THE BANK OF SPAIN OUSTED THE CHAIRMAN AND BOARD OF BANESTO AS SPAIN'S FOURTH LARGEST BANK IS KNOWN ON DECEMBER TWENTY EIGHTH AS THE BANK'S TROUBLES BECAME CLEAR AT THE TIME BANK OF SPAIN GOVERNOR LUIS ANGEL ROJO SAID STATE INSPECTORS HAD FOUND NO INDICATION OF WRONGDOING BUT LATER INSPECTIONS OF BANESTO'S ACCOUNTS HAVE TURNED UP DOCUMENTS THAT WERE OFF LIMITS TO CENTRAL BANK INSPECTORS BEFORE THE TAKEOVER IF THESE DOCUMENTS FAIL TO SHOW EVIDENCE OF CRIMINAL OFFENSES THE PROSECUTOR'S OFFICE SAID IT WILL SHELVE THE INVESTIGATION MEANWHILE BANESTO'S CARETAKER CHAIRMAN ALFREDO SAENZ ASKED THE NATIONAL STOCK EXCHANGE COMMISSION NOT TO RESUME TRADING IN THE BANK'S SHARES THIS MONTH TO GIVE THE NEW MANAGEMENT TIME TO DRAW UP A DRAFT REORGANIZATION PLAN BANESTO MAY HAVE TO WRITE OFF ITS POTENTIAL LOSSES AGAINST CAPITAL AND RESERVES WHICH STOOD AT THREE HUNDRED FIFTY NINE BILLION PESETAS TWO POINT FOUR EIGHT BILLION DOLLARS ON JUNE THIRTIETH A WRITE DOWN COULD RENDER BANESTO'S SHARES ALMOST WORTHLESS A FACT THAT COMMISSION OFFICIALS SAID HOLDERS SHOULD KNOW BEFORE TRADING IN THE BANK'S SHARES RESUMES CAMDEN PROPERTY TRUST SAID IT ARRANGED A SEVENTY FIVE MILLION DOLLAR CREDIT LINE IT WOULDN'T IDENTIFY THE LENDER THE NEW LOAN INCREASES THE COMPANY'S CREDIT LINES TO ONE HUNDRED THIRTY FIVE MILLION DOLLARS OF WHICH SEVENTY FIVE POINT THREE MILLION DOLLARS IS CURRENTLY UNUSED THE REAL ESTATE INVESTMENT TRUST SAID THE LOAN WHICH WILL BEAR INTEREST AT A VARIABLE RATE BASED ON THE ONE MONTH LONDON INTERBANK OFFERED RATE OR LIBOR WILL ENABLE IT TO ADD MULTIFAMILY PROPERTIES TO ITS PORTFOLIO ASARCO INCORPORATED SAID IT HAS SOLD ITS REMAINING FORTY FIVE POINT THREE PERCENT INTEREST IN ASARCO AUSTRALIA LIMITED FOR SEVENTY NINE POINT FIVE MILLION DOLLARS THE SALE OF ASARCO'S SIXTY SIX POINT FIVE MILLION SHARES IN THE COMPANY WILL RESULT IN A PRETAX GAIN OF FIFTY EIGHT POINT SEVEN MILLION DOLLARS ASARCO SAID THE MINING AND CHEMICAL CONCERN SAID IT WILL USE PROCEEDS FROM THE SALE TO REDUCE DEBT ASARCO AUSTRALIA A SEPARATE PUBLICLY TRADED COMPANY OPERATES TWO GOLD MINES IN WESTERN AUSTRALIA THAT PRODUCED ABOUT ONE HUNDRED TEN THOUSAND TROY OUNCES OF GOLD IN NINETEEN NINETY TWO FOR THE MOMENT AT LEAST THE TREASURY BOND MARKET IS RUNNING WITH THE BULLS AND YESTERDAY WAS NO EXCEPTION EVER SINCE LAST FRIDAY WHEN A WEAKER THAN EXPECTED EMPLOYMENT REPORT BOOSTED THE BENCHMARK THIRTY YEAR TREASURY BOND MORE THAN ONE AND ONE HALF POINTS INVESTORS HAVE BEEN GETTING BOLDER THEY ARE REGAINING THE CONFIDENCE THEY LOST IN THE FOURTH QUARTER OF LAST YEAR WHEN IT SEEMED AS IF EVERY ECONOMIC REPORT SHOWED THE U. S. ECONOMY STARTING TO SPEED UP BUT WITH RECENT REPORTS SUGGESTING THAT THE ECONOMY MAY NOT GROW AS MUCH IN THE FIRST QUARTER AS IT DID AT THE END OF LAST YEAR OPTIMISM IS RETURNING TO THE MARKET ALBEIT CAUTIOUSLY YESTERDAY A REPORT SHOWING SUBDUED INFLATION FOR DECEMBER BOOSTED THE PRICE OF THE BENCHMARK THIRTY YEAR TREASURY BOND MORE THAN THREE QUARTERS POINT OR MORE THAN SEVEN DOLLARS AND FIFTY CENTS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO ONE HUNDRED AND TWENTY EIGHT THIRTY SECONDS ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE DROPPED TO SIX POINT ONE EIGHT PERCENT FROM SIX POINT TWO THREE PERCENT THE LOWEST YIELD IN A MONTH BOND INVESTORS GREET NEWS OF LOW INFLATION BECAUSE INFLATION REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN YESTERDAY THE LABOR DEPARTMENT SAID THE PRODUCER PRICE INDEX FELL ZERO POINT ONE PERCENT IN DECEMBER EXCLUDING VOLATILE FOOD AND ENERGY PRICES THE CORE P. P. I. WAS UP ZERO POINT TWO PERCENT COMPANIES TOOK ADVANTAGE OF THE LOWER RATES BY SELLING MORE THAN TWO BILLION DOLLARS OF NEW BONDS INCLUDING A THREE HUNDRED MILLION DOLLAR CANADIAN OFFERING OF TWENTY YEAR BONDS BY ROGERS CABLESYSTEMS A CABLE T. V. FIRM ALSO CONTRIBUTING TO THE OPTIMISM IN THE U. S. TREASURY MARKET IS THE BELIEF AMONG INVESTORS THAT THE FEDERAL RESERVE IS NOT GOING TO MOVE TO RAISE SHORT TERM INTEREST RATES ANYTIME SOON TOWARD THE END OF LAST YEAR THERE WAS WIDESPREAD SPECULATION THAT THE FED WOULD MAKE A PRE EMPTIVE STRIKE AGAINST INFLATIONARY PRESSURES BY RAISING SHORT TERM RATES EARLY THIS YEAR SO PREVALENT WAS THE SPECULATION AT THAT TIME THAT SEVERAL CLINTON ADMINISTRATION OFFICIALS WENT OUT OF THEIR WAY TO SAY WHY SUCH A MOVE COULD CHOKE THE ECONOMY AND POSSIBLY TRIGGER ANOTHER RECESSION BUT WITH YESTERDAY'S INFLATION REPORT INVESTORS GAINED MORE CONFIDENCE THAT IF THE FED IS GOING TO MAKE SUCH A MOVE IT WON'T BE SOON QUOTE AS FAR AS WHERE THE MARKET PERCEIVES THE FED'S POLICY QUOTE SAID MATTHEW ALEXY A GOVERNMENT TRADING STRATEGIST AT C. S. FIRST BOSTON CORPORATION QUOTE WE'VE DODGED THE BULLET QUOTE AS FAR AS THE ECONOMY HEATING UP IN THIS QUARTER SAID MR. ALEXY IT APPEARS THAT ECONOMIC GROWTH HAS NOT BEEN ACCELERATING AT AS RAPID A PACE AS INVESTORS HAD FEARED IN THE FOURTH QUARTER THE WHOLE IDEA WAS THAT THE ECONOMY WAS GETTING ONTO THE HIGHWAY AND GOING FROM ZERO TO FIFTY MILES PER HOUR IN TEN SECONDS HE EXPLAINED BUT GOING FROM FIFTY TO SEVENTY FIVE MILES PER HOUR COULD TAKE MUCH LONGER THE RESULT IS THAT INVESTORS AREN'T NEARLY AS WORRIED ABOUT THE ECONOMY AS THEY HAVE BEEN IN RECENT MONTHS INDEED SHORT TERM RATES ARE NEARING LEVELS NOT SEEN SINCE OCTOBER WHEN THREE MONTH TREASURY BILL RATES HIT THEIR LOWEST LEVELS SINCE THE NINETEEN SIXTIES YESTERDAY FOR EXAMPLE THE TWO YEAR NOTE YIELDED FOUR POINT OH TWO PERCENT THE LOWEST SINCE OCTOBER TWENTY NINTH MR. ALEXY THINKS LONG TERM RATES MAY FOLLOW WITH THE THIRTY YEAR BOND YIELD DROPPING BELOW SIX PERCENT BY THE END OF THE MONTH ONE CHICAGO BOND SALESMAN SAYS CUSTOMERS WERE FRUSTRATED THAT THE MARKET GOT AWAY FROM THEM YESTERDAY BEFORE THEY HAD A CHANCE TO BUY MOST OF THE MOVE HIGHER TOOK PLACE BEFORE ONE P. M. I DETECT SOME REAL FRUSTRATION FROM PEOPLE WHICH TELLS ME WE STILL HAVE ROOM TO GO THE SALESMAN SAID MANY MONEY MANAGERS WHO ARE STILL WARY ABOUT THE MARKET AND EXPECT INTEREST RATES TO RISE A BIT THIS YEAR WERE FORCED INTO THE MARKET YESTERDAY BECAUSE THEY HAD PILES OF CASH THEY HAD TO INVEST CARY LEAHEY SENIOR FINANCIAL MARKET ECONOMIST AT LEHMAN BROTHERS INCORPORATED SAYS FUND MANAGERS HAVEN'T CHANGED THEIR VIEWS OF THE MARKET THAT DRASTICALLY AND MOST REMAIN GUARDED BUT MANY PARTICULARLY MUTUAL FUND MANAGERS HAVE BEEN OVERWHELMED WITH CASH THEY NEED TO INVEST WHEN ALL THESE FLOWS SWARMED INTO THE MARKET PRICES SOARED INVESTORS ARE GETTING LULLED INTO A SENSE THAT YOU NEVER LOSE MONEY IN THE FINANCIAL MARKETS MR. LEAHEY SAID SO THEY ARE THROWING MONEY AT MANAGERS AND THESE MANAGERS HAVE TO PUT THE MONEY TO WORK THERE IS STILL A LOT OF UNCERTAINTY IN THE BOND MARKETS SAID MR. ALEXY OF C. S. FIRST BOSTON A SURPRISINGLY STRONG ECONOMIC REPORT COULD QUICKLY CHANGE SENTIMENTS TODAY THE GOVERNMENT IS SLATED TO RELEASE THE CONSUMER PRICE INDEX FOR DECEMBER THE AVERAGE OF ESTIMATES OF ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT CALLS FOR A ZERO POINT TWO PERCENT INCREASE IN THE C. P. I. AND A ZERO POINT THREE PERCENT INCREASE EXCLUDING FOOD AND ENERGY PRICES THE SAME INCREASES SEEN IN NOVEMBER MR. ALEXY OF C. S. FIRST BOSTON SAID BOND PRICES COULD RISE EVEN FURTHER IF THE REPORT SHOWS AN INCREASE AT OR BELOW THE CONSENSUS YESTERDAY'S BUYING INVOLVED A BROADER GROUP OF INVESTORS THAN THOSE SEEN LATE LAST WEEK WHEN THE EMPLOYMENT NEWS HIT THE MARKET MANY MANAGERS WERE POISED TO ENTER THE MARKET AS SOON AS SIGNS OF WEAKER FIRST QUARTER GROWTH WERE APPARENT BUT WITH LATE FOURTH QUARTER NUMBERS ALREADY SHOWING THE ECONOMY IS NOT YET BOOMING BUYERS STEPPED IN BUT PRICES ALSO WERE LIFTED BY TRANSACTIONS INVOLVING SPECULATIVE ACCOUNTS MANY OF WHOM WERE FORCED TO COVER SHORT POSITIONS IN A SHORT SALE A DEALER SELLS A BORROWED SECURITY IN HOPES OF REPLACING IT LATER AT A LOWER PRICE DEALERS QUOTE COVER SHORTS QUOTE WHEN THEY BUY BACK THESE BORROWED SECURITIES PROFITING IF THE PRICES HAVE DROPPED IN THE MEANTIME THE CORPORATE BOND MARKET RALLIED IN STEP WITH TREASURYS AS ISSUERS GRABBED THE OPPORTUNITY TO SELL OVER TWO BILLION DOLLARS OF NEW SECURITIES AMONG THE ISSUERS WAS UNION ELECTRIC COMPANY TWO P. N. C. BANK CORPORATION SUBSIDIARIES CAROLINA POWER AND LIGHT COMPANY KANSAS GAS AND ELECTRIC COMPANY AND SMITH BARNEY SHEARSON HOLDINGS INCORPORATED AMONG OTHERS THE MOST NOTABLE DEAL CAME FROM ROGERS CABLESYSTEMS LIMITED A SUBSIDIARY OF ROGERS COMMUNICATIONS CANADA'S LARGEST CABLE COMPANY WHICH SOLD CANADIAN DOLLAR DEMONINATED JUNK BONDS THROUGH MERRILL LYNCH AND COMPANY THE COMPANY SOLD THREE HUNDRED MILLION CANADIAN DOLLARS OF TWENTY YEAR BONDS AT PAR TO YIELD NINE POINT SIX FIVE PERCENT THE BONDS NONCALLABLE FOR TEN YEARS ARE RATED B. A ONE BY MOODY'S INVESTORS SERVICE INCORPORATED AND DOUBLE B. PLUS BY STANDARD AND POOR'S CORPORATION SYNDICATE OFFICIALS SAID THEY EXPECTED OTHER FOREIGN COMPANIES WITH BELOW INVESTMENT GRADE RATINGS TO FOLLOW THE EXAMPLE AND SELL FOREIGN CURRENCY DENOMINATED BONDS IN THE U. S. THESE ISSUES COULD COME FROM COMPANIES IN CANADA NEW ZEALAND FRANCE AND ITALY THEY SAID MUNICIPAL BONDS WERE CAUGHT UP IN THE SAME BUYING THAT BOOSTED TREASURY ISSUES THE REEDY CREEK FLORIDA IMPROVEMENT DISTRICT'S NEWLY FREED FIVE PERCENT OF TWO THOUSAND FOURTEEN BONDS WERE QUOTED AT NINETY SEVEN AND ONE EIGHTH TO YIELD FIVE POINT TWO OH PERCENT WHEN A MERRILL LYNCH AND COMPANY GROUP BROUGHT THE DISTRICT'S TWO HUNDRED NINETEEN MILLION DOLLAR REFUNDING ISSUE TO THE MARKET TUESDAY THE BONDS WERE GIVEN A PRICE OF NINETY SIX POINT NINE NINE AND A FIVE POINT TWO FOUR PERCENT YIELD CHICAGO'S FIVE POINT SEVEN FIVE PERCENT OF TWO THOUSAND TWENTY THREE BONDS WERE THREE EIGHTHS POINT STRONGER AT ONE HUNDRED AND ONE EIGHTH YIELDING FIVE POINT SEVEN ONE PERCENT THE MORE THAN TWO BILLION DOLLARS OF MUNIS PRICED TUESDAY WERE WELL RECEIVED ISSUANCE SLOWED YESTERDAY BUT DEMAND REMAINED STRONG IN THE PRIMARY MARKET A GOLDMAN SACHS AND COMPANY GROUP PRICED THE ORLANDO UTILITIES COMMISSION FLORIDA ONE HUNDRED THIRTY SEVEN POINT FIVE MILLION DOLLAR REFUNDING BONDS TO YIELD FROM THREE POINT TWO FIVE PERCENT IN NINETEEN NINETY SIX TO FIVE POINT THREE TWO PERCENT IN TWO THOUSAND TWENTY THE ISSUE WAS OVERSUBSCRIBED MORTGAGE SECURITIES REALIZED ONLY SOME OF THE GAINS SEEN BY RALLYING TREASURYS ONE TRADER AT A PRIMARY DEALER'S MORTGAGE DESK SAID THERE WERE SELLERS OF SEVEN PERCENT AND SEVEN AND ONE HALF PERCENT COUPONS WHILE INVESTORS STEPPED IN TO BUY HIGH COUPONS SUCH AS NINE PERCENT AND ABOVE THERE ALSO WAS BUYING OF CURRENT COUPONS BUT MOST ACCOUNTS WERE WAITING FOR A WELL DEFINED RATE PATTERN BEFORE ADDING TO THOSE POSITIONS NEAR THE CLOSE OF TRADING THE SIX AND ONE HALF PERCENT SECURITIES FOR FEBRUARY SETTLEMENT WERE ALL UP SEVEN THIRTY SECONDS GOVERNMENT NATIONAL MORTGAGE ASSOCIATION TRADED AT ONE HUNDRED AND EIGHT THIRTY SECONDS FEDERAL HOME LOAN MORTGAGE CORPORATION GOLDS WERE AT ONE HUNDRED AND TEN THIRTY SECONDS AND FEDERAL NATIONAL MORTGAGE ASSOCIATION CHANGED HANDS AT ONE HUNDRED AND SIX THIRTY SECONDS AS FOR HIGHER COUPONS THE NINE PERCENT ISSUES FROM ALL THREE AGENCIES WERE FLAT OR UP ONE THIRTY SECOND NEAR THE CLOSE TWO NEW REAL ESTATE INVESTMENT CONDUITS TOTALING EIGHT HUNDRED SEVENTY MILLION DOLLARS WERE ANNOUNCED BOTH NEW DEALS ARE BACKED BY FREDDIE MAC PAPER ONE WITH A SIX PERCENT COUPON AND THE OTHER WITH A SEVEN PERCENT COUPON PARKER AND PARSLEY PETROLEUM COMPANY SAID IT AGREED TO SELL FOR FORTY FOUR MILLION DOLLARS MOST OF ITS INTEREST IN THE SAN JUAN BASIN OF NEW MEXICO AND COLORADO TO MERIDEAN OIL PRODUCTION INCORPORATED PARKER AND PARSLEY SAID THE PROPERTIES WERE ACQUIRED AS PART OF AN ACQUISITION OF PROPERTIES FROM THE PRU ENERGY PARTNERSHIPS WHICH CLOSED NOVEMBER FIRST PARKER AND PARSLEY SAID IT WON'T RECOGNIZE A GAIN OR LOSS ON THE SALE RES CARE INCORPORATED LOUISVILLE KENTUCKY JEFF CROSS FORTY YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT OF OPERATIONS FOR THIS COMPANY'S DIVISION FOR PERSONS WITH DISABILITIES EFFECTIVE JANUARY FIRST HE WAS PREVIOUSLY VICE PRESIDENT OF OPERATIONS RES CARE PROVIDES RESIDENTIAL TRAINING AND SUPPORT SERVICES FOR MENTALLY RETARDED PERSONS AND INDIVIDUALS WITH OTHER DEVELOPMENTAL DISABILITIES THE COMPANY ALSO OPERATES VOCATIONAL TRAINING CENTERS AND OWNS SIXTY EIGHT PERCENT OF HOME CARE AFFILIATES INCORPORATED A CONCERN THAT PROVIDES HOME NURSING IN FOUR STATES BOND PRICES SURGED AFTER AN INFLATION REPORT CALMED JITTERY INVESTORS STOCK PRICES WERE MIXED AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SLIPPED ONE POINT SIX EIGHT POINTS TO THREE THOUSAND EIGHT HUNDRED FORTY EIGHT POINT SIX THREE IN VERY HEAVY TRADING STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX EDGED UP ZERO POINT ZERO FOUR TO FOUR HUNDRED SEVENTY FOUR POINT ONE SEVEN AND THE NASDAQ COMPOSITE INDEX CLIMBED ONE POINT THREE FIVE TO SEVEN HUNDRED EIGHTY SIX POINT EIGHT SEVEN FALLING A FRACTION AWAY FROM A RECORD BUT DECLINING OIL PRICES PROPELLED THE DOW JONES TRANSPORTATION AVERAGE TO A RECORD THE INDEX OF TWENTY STOCKS ADVANCED NINE POINT TWO TWO POINTS TO ONE THOUSAND EIGHT HUNDRED TWENTY ONE POINT FIVE ONE SMASHING A RECORD SET THREE DAYS AGO UNTIL YESTERDAY THE STOCK MARKET'S BIG GAINS HAD CAPTURED INVESTOR ATTENTION BUT IT WAS THE BOND MARKET THAT STOLE THE SPOTLIGHT YESTERDAY AFTER RALLYING MORE THAN ONE POINT ON NEWS THAT PRODUCER PRICES SLIPPED ZERO POINT ONE PERCENT IN DECEMBER THE GOVERNMENT'S THIRTY YEAR BOND RETREATED MODESTLY LATE IN THE AFTERNOON FINISHING THE DAY WITH A STRONG GAIN THE YIELD ON THE ISSUE SLIPPED BELOW THE SIX POINT TWO OH PERCENT LEVEL FOR THE FIRST TIME IN A MONTH ECONOMISTS SAID THAT WHILE THE P. P. I. REPORT WAS IN LINE WITH EXPECTATIONS TRADERS BID UP BONDS MAINLY ON THE RECOGNITION THAT THE MARKET HAD SOLD OFF TOO SHARPLY IN RECENT WEEKS TRADERS ARE ALSO BETTING ON MORE GOOD INFLATION NEWS TODAY WHEN THE LABOR DEPARTMENT RELEASES ITS CONSUMER PRICE REPORT FOR DECEMBER MANY ANALYSTS ARE EXPECTING THE INDEX TO SHOW A GAIN OF ZERO POINT ONE PERCENT QUOTE I DON'T THINK THE PRODUCER PRICE NUMBER SURPRISED ANYBODY BUT IT PROBABLY GAVE PEOPLE MORE CONFIDENCE THAT THE CONSUMER PRICE REPORT WILL BE RELATIVELY BENIGN QUOTE SAID DON FINE CHIEF MARKET ANALYST AT CHASE SECURITIES MR. FINE WHO IS LOOKING FOR A RISE OF ZERO POINT TWO PERCENT IN DECEMBER CONSUMER PRICES SAID IT'S HARD TO BE BEARISH ON BONDS WITH OIL PRICES FALLING FAVORABLE INFLATION DATA EMERGING AND AN ECONOMY THAT ISN'T EXPANDING TOO FAST WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX DROPPED ZERO POINT TWO ZERO TO ONE HUNDRED TWELVE POINT SEVEN ONE STOCK PRICES WERE MIXED VOLUME TOTALED THREE HUNDRED NINE POINT NINE MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND ONE HUNDRED FORTY SIX ISSUES ROSE AND NINE HUNDRED FIFTY SIX FELL BOND PRICES RALLIED THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE GAINED MORE THAN THREE QUARTERS POINT OR OVER SEVEN DOLLARS AND FIFTY CENTS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT ONE EIGHT PERCENT THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN THREE THREE SEVEN MARKS AND ONE HUNDRED TWELVE POINT TWO OH YEN COMPARED WITH ONE POINT SEVEN FOUR ONE SIX MARKS AND ONE HUNDRED TWELVE POINT FOUR OH YEN TUESDAY FRANCIS J. KANE THIRTY FIVE YEARS OLD WAS NAMED TO THE NEW POSITION OF TREASURER AND VICE PRESIDENT INVESTOR RELATIONS OF THIS MINING CONCERN MR. KANE ASSUMES THE DUTIES OF TWO FORMER VICE PRESIDENTS WHO LEFT THE COMPANY LAST YEAR DENNIS C. HAUGH FORMERLY TREASURER AND RICHARD H. HAGMAN WHO PREVIOUSLY HEADED THE PUBLIC AND INVESTOR RELATIONS DEPARTMENT OPTED IN DECEMBER TO TAKE A RETIREMENT PACKAGE TRIGGERED BY THE PURCHASE OF AMAX INCORPORATED BY CYPRUS MINERALS COMPANY MR. KANE JOINS CYPRUS AMAX FROM BEAR STEARNS AND COMPANY WHERE HE WAS ASSOCIATE DIRECTOR RELATIONSHIP OFFICER ONE OF THE BIGGEST AND MOST POPULAR ANTI POVERTY PROGRAMS IS GETTING A HARD RETHINKING FOR NINETEEN YEARS THE EARNED INCOME TAX CREDIT HAS BEEN EMBRACED ACROSS THE POLITICAL SPECTRUM THE CREDIT USUALLY GIVEN IN AN ANNUAL LUMP SUM IS INTENDED SOLELY FOR THE WORKING POOR CONSERVATIVES ADMIRE IT BECAUSE IT REWARDS WORK LIBERALS LIKE IT BECAUSE IT HELPS THE NEEDY SOME FOURTEEN MILLION FAMILIES RECEIVED THE CREDIT LAST YEAR THE CREDIT ALSO HAS GROWN IN SIGNIFICANCE IT WAS VIRTUALLY THE ONLY DOMESTIC PROGRAM TO SEE A SUBSTANTIAL FUNDING INCREASE UNDER LAST YEAR'S BUDGET LAW A HUGE FIFTY PERCENT ITS PRICE TAG THIS YEAR IS EXPECTED TO BE ROUGHLY FOURTEEN POINT FIVE BILLION DOLLARS TWICE THE INTERIOR DEPARTMENT'S ENTIRE BUDGET IT ALSO IS EXPECTED TO BE A CORNERSTONE OF PRESIDENT CLINTON'S WELFARE REFORM PLAN BECAUSE IT MAKES LOW WAGE JOBS THE FIRST RUNG UP FROM WELFARE MORE ATTRACTIVE BUT ITS STANDING AS UNIMPEACHABLE SOCIAL POLICY MAY BE CHANGING NEW AGONIZING OVER THE BUDGET DEFICIT AND UNINTENDED CONSEQUENCES OF LAST YEAR'S EARNED CREDIT EXPANSION HAVE PUT IT UNDER NEW SCRUTINY QUOTE A BIGGER AND MORE EXPANSIVE EARNED CREDIT IS NOT ALWAYS BETTER QUOTE WROTE MARVIN KOSTERS AN ANALYST AT THE AMERICAN ENTERPRISE INSTITUTE ONE GOAL OF LAST YEAR'S BUDGET LAW ACCORDING TO THE CLINTON ADMINISTRATION WAS TO PULL ALL FULL TIME WORKERS ABOVE THE POVERTY LINE THE MEASURE EXPANDED THE CREDIT TO A MAXIMUM OF THREE THOUSAND THREE HUNDRED SEVENTY DOLLARS IN NINETEEN NINETY SIX FROM ONE THOUSAND NINE HUNDRED NINETY EIGHT DOLLARS IN THE PRE NINETEEN NINETY THREE LAW THE VAST MAJORITY OF THE WORKING POOR RECEIVE THE CREDIT AFTER FILING THEIR INCOME TAX STATEMENTS THEY MAY ALSO RECEIVE THE CREDIT THROUGH THEIR WEEKLY PAYCHECKS THOUGH HARDLY ANYBODY DID THIS IN NINETEEN NINETY ONE ADVOCATES FOR THE POOR WERE THRILLED WITH THE CHANGES THE EXPANDED CREDIT SAID THE LIBERAL CENTER ON BUDGET AND POLICY PRIORITIES MADE LAST YEAR'S BUDGET LAW THE MOST PROGRESSIVE OF ANY MAJOR PIECE OF TAX LEGISLATION IN DECADES BUT THE EXPANSION HAS RAISED SOME COMPLEX ECONOMIC ARGUMENTS SOME WONDER WHY FAMILIES THAT EARN AS MUCH AS TWENTY SEVEN THOUSAND DOLLARS GETTING INTO MIDDLE CLASS TERRITORY ARE ELIGIBLE THE SIZE OF THE CREDIT INCREASES WITH INCOME REACHING THE THREE THOUSAND THREE HUNDRED SEVENTY DOLLAR MAXIMUM FOR A FAMILY WITH TWO CHILDREN EARNING ELEVEN THOUSAND DOLLARS THE CREDIT THEN SHRINKS WITH EACH ADDED DOLLAR OF INCOME BUT IT DOESN'T DISAPPEAR ENTIRELY UNTIL INCOME TOPS TWENTY SEVEN THOUSAND DOLLARS IT GOES BEYOND THE WORKING POOR ADMITS ROBERT SHAPIRO VICE PRESIDENT OF THE PROGRESSIVE POLICY INSTITUTE NONETHELESS HE SUPPORTS THE PROGRAM WITH MINOR CHANGES SUCH AS IMPROVED ANTIFRAUD MEASURES SOME ECONOMISTS ARE TROUBLED BY HOW THE CREDIT AFFECTS PEOPLE WITH INCOMES BETWEEN ELEVEN THOUSAND DOLLARS AND TWENTY SEVEN THOUSAND DOLLARS REDUCTIONS IN THE CREDIT AS WAGES INCREASE IN THAT RANGE GIVE RECIPIENTS AN INCENTIVE TO WORK LESS THESE ANALYSTS SAY NO EMPIRICAL STUDIES OF THE ISSUE HAVE BEEN DONE HOWEVER SOME THIRTY SEVEN PERCENT OF FAMILIES RECEIVING THE CREDIT HAVE INCOMES ABOVE TWENTY THOUSAND DOLLARS ACCORDING TO EDGAR BROWNING AN ECONOMIST AT TEXAS A AND M. UNIVERSITY HE SAYS THE CREDIT CREATES A SIGNIFICANT WORK DISINCENTIVE FOR MILLIONS OF FAMILIES WHO AREN'T POOR PEOPLE WHO DEAL WITH THE TAX CREDIT DISMISS SUCH NOTIONS AS IVORY TOWER THEORIZING IRRELEVANT TO THE WORKING POOR WHO STRUGGLE TO GET BY THOSE ECONOMISTS ARE OUT OF THEIR MINDS SAYS TYRONE BULLOCK AN ACCOUNTANT WHO PRACTICES IN THE LOW INCOME ANACOSTIA NEIGHBORHOOD IN WASHINGTON NONE OF MY CLIENTS HAVE EVER TURNED DOWN ANY RAISE OR OVERTIME TO GET MORE FROM THE EARNED INCOME TAX CREDIT FOR MOST HE SAYS THE TAX CREDIT IS AN AFTERTHOUGHT LAST YEAR'S EXPANSION MAY MAKE THE PROGRAM AN INVITING TARGET AS THE SEARCH FOR BUDGET CUTS INTENSIFIES SOME CONSERVATIVES NOW LUMPING THE EARNED CREDIT IN WITH OTHER WELFARE SPENDING PROGRAMS SUCH AS FOOD STAMPS AND AID FOR FAMILIES WITH DEPENDENT CHILDREN HAVE SET THEIR SIGHTS ON CAPPING THEM ALL A WELFARE REFORM BILL ENDORSED BY ONE HUNDRED SIXTY TWO OF THE ONE HUNDRED SEVENTY FIVE HOUSE REPUBLICANS WOULD LIMIT THE GROWTH OF ALL QUOTE WELFARE QUOTE SPENDING INCLUDING THE EARNED INCOME CREDIT TO TWO PERCENT A YEAR AFTER INFLATION STEMMING THE GROWTH OF THE EARNED INCOME CREDIT WAS VERY IMPORTANT PARTICULARLY WITH THE CONSERVATIVES SAYS REPRESENTATIVE THOMAS DELAY A TEXAS REPUBLICAN WHO BACKS THE BILL THEY WANTED A GUARANTEE THAT WHAT WE SAY ABOUT SAVING MONEY WILL ACTUALLY HAPPEN HIS STAFFERS BELIEVE THAT COMMITMENT TO REIN IN THE CREDIT ATTRACTED THIRTY TO FORTY CO SPONSORS TO THE BILL IT'S THE BEST OF A DEPLORABLE SET OF PROGRAMS SAYS ROBERT RECTOR AN ANALYST FOR THE HERITAGE FOUNDATION A CONSERVATIVE THINK TANK HE SAYS IT'S ONE OF THE BEST GOVERNMENT BENEFITS FOR THE POOR BECAUSE IT REWARDS WORK BUT HE DECRIES ITS HOUSEHOLD SPLITTING EFFECTS A COUPLE LIVING TOGETHER HE NOTES MAY DECIDE NOT TO MARRY SO AS TO QUALIFY SEPARATELY HE ALSO FRETS THAT THE SAME PEOPLE WHO RECEIVE THE EARNED INCOME CREDIT WILL BENEFIT FROM PRESIDENT CLINTON'S PLAN FOR GOVERNMENT HEALTH COVERAGE THE PRESIDENT IS GOING TO BE GIVING OUT GOBS OF BENEFITS SAYS MR. RECTOR HE PROPOSES USING FUNDS CURRENTLY EARMARKED FOR THE EARNED INCOME CREDIT TO PAY FOR HEALTH BENEFITS A WORLD AWAY FROM HERE IN WASHINGTON D. C. POLITICAL IMPRESARIO JOHN P. SEARS ONCE HELPED PUT A FORMER ACTOR NAMED RONALD REAGAN INTO THE WHITE HOUSE NOW HE WANTS TO DO SOMETHING MORE AUDACIOUS BUILD A STATE OF THE ART STEEL MILL HERE GET U. S. INVESTORS TO FINANCE IT AND THE CZECH GOVERNMENT TO BACK IT WHILE KEEPING MAJORITY OWNERSHIP FOR HIMSELF AND HIS PARTNERS QUOTE IT IS NOT JUST FOR US THAT WE DO THIS BUT FOR YOU THE WHOLE COUNTRY QUOTE MR. SEARS TELLS THREE DOZEN GUESTS SIPPING CHAMPAGNE AND WINE AT A RECEPTION HE IS THROWING IN A CENTURIES OLD FORMER CONVENT HERE LATER HE CONFIDES I SELL HOPE IN THE SHORT HISTORY OF CAPITALISM IN EASTERN EUROPE FEW PROJECTS ARE AS BIGOR AS UNUSUAL AS THAT WHICH MR. SEARS IS PROPOSING TO CONSTRUCT SOME THREE HUNDRED MILES FROM PRAGUE IN SMOG ENSHROUDED OSTRAVA HOME OF A MASSIVE BUT OUTDATED STEEL COMPLEX OWNED BY THE CZECH GOVERNMENT DOES IT MAKE SENSE TO BUILD A NEW STEEL MILL AT A COST OF AS MUCH AS NINE HUNDRED FIFTY MILLION DOLLARS AT A TIME WHEN THE REST OF EUROPE IS CLOSING STEEL PLANTS BECAUSE OF OVERCAPACITY AND THE EUROPEAN UNION IS SCREAMING ABOUT CHEAP IMPORTS FROM THE EAST MR. SEARS CLAIMS THAT HIS PROJECT COULD GENERATE NET INCOME OF AS MUCH AS ONE HUNDRED SIX POINT SEVEN MILLION DOLLARS A YEAR AND HIS BACKERS AREN'T SLOUCHES AMONG HIS ENTOURAGE ARE REPRESENTATIVES FROM INVESTMENT BANK DILLON READ AND COMPANY LAW FIRM SKADDEN ARPS SLATE MEAGHER AND FLOM CONTRACTORS BROWN AND ROOT BIG JAPANESE STEEL PRODUCER N. K. K. CORPORATION ISHIKAWAJIMA HARIMA HEAVY INDUSTRIES COMPANY AND STEEL TRADING FIRM TOKYO BOEKI LIMITED BUT MANY OTHERS ARE SKEPTICAL WONDERING WHY A SUPPOSEDLY ATTRACTIVE PROJECT NEEDS A GOVERNMENT GUARANTEE JUST NOW IN FACT THE CZECH GOVERNMENT IS BEING FORCED THROUGH ITS GUARANTEES TO PAY EIGHTEEN POINT SEVEN MILLION DOLLARS FOR PLANES THAT CZECHOSLOVAK AIRLINES CONTRACTED TO LEASE BUT NOW CAN'T AFFORD BANKERS AT THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WHO KNOW OF MR. SEARS'S PROJECT SAY THEY DON'T LIKE COMMERCIAL PROJECTS THAT NEED GOVERNMENT GUARANTEES MR. SEARS ONCE CALLED AMERICA'S SHREWDEST POLITICAL CAMPAIGN MANAGER CONCEDES THAT AT THE CZECH MINISTRY OF INDUSTRY AND TRADE I WAS ACCUSED FIRST OF BEING A FOOL AND SECONDLY OF TRYING TO ROB THE PLACE BUT THE MINISTRY NOW SAYS IT IS EVALUATING THE PROJECT AND CALLS IT AN INTERESTING IDEA THAT IT IS SERIOUSLY ENGAGED IN THE FACT THAT THE FIFTY THREE YEAR OLD LOBBYIST HAS GOTTEN THIS FAR IS A TESTIMONY TO THE VALUE OF CONNECTIONS AND THE SEDUCTION OF DEAL MAKING IN EMERGING MARKETS FOR ECONOMIES IN TRANSITION IT RAISES IMPORTANT QUESTIONS ABOUT HOW MUCH GOVERNMENT FINANCIAL SUPPORT SHOULD BE GIVEN TO PROJECTS THAT ARE ESSENTIALLY PRIVATE EVERYBODY HAS A PROJECT IN EASTERN EUROPE SAYS DENIS BOVIN VICE CHAIRMAN OF BEAR STEARNS AND COMPANY IN NEW YORK THERE ARE A THOUSAND OF THESE THINGS GOING ON ONLY A SMALL PERCENTAGE WILL SEE THE LIGHT OF DAY QUOTE MR. SEARS IS PROPOSING TO BUILD THE FIRST BIG MINIMILL IN ALL OF EUROPE EAST OR WEST MINIMILLS AREN'T NECESSARILY SMALL THEY JUST USE SCRAP INSTEAD OF IRON ORE TO MAKE FINISHED PRODUCTS MR. SEARS SEES HANDSOME PROFITS PARTICULARLY FOR HIMSELF AND HIS WASHINGTON LAW PARTNER SOUTH AFRICAN JOEL HOPPENSTEIN MR. SEARS AND SEVERAL PARTNERS WOULD OWN SIXTY FIVE PERCENT OF THE MINIMILL WHILE PUTTING UP VIRTUALLY NO MONEY BESIDES EXPENSES THE THIRTY FIVE PERCENT OWNER NOVA HUT A HUGE PROFITABLE STEEL FIRM THE CZECH GOVERNMENT OWNS THROUGH ITS NATIONAL PROPERTY FUND WOULD PROVIDE ONE HUNDRED MILLION DOLLARS IN WORKING CAPITAL AS WELL AS THE LAND AND LABOR THE TOTAL COST ESTIMATED BETWEEN SIX HUNDRED FIFTY MILLION DOLLARS AND NINE HUNDRED FIFTY MILLION DOLLARS WOULD BE FINANCED THROUGH A LEASING STRUCTURE USING CZECH GOVERNMENT BACKED DEBT SOLD THROUGH DILLON READ IN THE U. S. I'M PUTTING UP VERY LITTLE SAYS MR. SEARS WHO NOTES HE HAS SPENT TIME AND ENERGY IT WAS MY IDEA THE FINANCING IN FACT IS A BIG MOTIVATION FOR THE PROJECT CZECH GOVERNMENT BACKED DEBT IS VERY HOT NOW AMONG INVESTORS ANITA MOLINO A DILLON READ SENIOR VICE PRESIDENT WORKING ON THE PROJECT SAYS HER CLIENTS ARE USED TO BUYING GOVERNMENT BACKED DEBT CHAIN SMOKING MARLBOROS MR. SEARS SAYS HE FIRST VISITED THEN CZECHOSLOVAKIA IN THE NINETEEN SIXTIES BEFORE HE BECAME AN INTIMATE OF U. S. POLITICAL FIGURES AND RAN THE PRESIDENTIAL CAMPAIGNS OF RICHARD NIXON AND THEN RONALD REAGAN IN NINETEEN NINETY ONE MR. SEARS BROUGHT AN OLD FRIEND FROM JAPAN A STEEL MARKETING MAN NAMED TAKESHI UE MANAGING DIRECTOR OF TOKYO BOEKI DEVELOPMENT LIMITED WHICH IS DISTANTLY RELATED TO TOKYO BOEKI LIMITED ONE OF JAPAN'S SMALLER TRADING COMPANIES INSPIRED BY CZECH GOVERNMENT OFFICIALS WHO CAME TO JAPAN SOLICITING INVESTMENT THEY HATCHED A PLAN TO MAKE LOW COST HIGH QUALITY STEEL FOR EXPORT IN OSTRAVA NOVA HUT GENERAL MANAGER SVATOPLUK VELKOBORSKY SIXTY TWO WANTED TO UPDATE THE FIFTY YEAR OLD MILL THE YOUNGEST OF THREE ANCIENT STEEL COMPLEXES NOT FAR FROM THE POLISH BORDER WHICH DESPERATELY NEED NEW TECHNOLOGY AND RESTRUCTURING BUT MR. SEARS AND MR. UE INITIALLY OFFERED EQUIPMENT NOT MONEY EVEN NOW MR. VELKOBORSKY SOUNDS SLIGHTLY INCREDULOUS WE HAVE SEVERAL NEWSPAPER STORIES ABOUT MR. SEARS HE SAYS LAYING THEM OUT ON A TABLE IN HIS OFFICE BUT WE ARE NOT REALLY SURE HE IS THE SAME ONE FOR FINANCING MR. SEARS TURNED TO A BUSINESSMAN HE HAD MET RECENTLY RICHARD W. FISCHER OF DICK FISCHER DEVELOPMENT SEATTLE AND ANCHORAGE MR. FISCHER HAD BUILT U. S. GOVERNMENT PROJECTS WITH LEASE PURCHASE FINANCING RAISED BY DILLON READ SUCH TRANSACTIONS INVOLVE A PRIVATE DEVELOPER BUILDING A PROJECT WITH GOVERNMENT SECURED DEBT AND LEASING IT TO A GOVERNMENT BUT DILLON READ HASN'T ANY OFFICES IN EASTERN EUROPE AND NEVER HAS DONE A TRANSACTION IN THE REGION MR. FISCHER NEVER HAS BUILT A STEEL PLANT QUOTE BUT I'VE BUILT LOTS OF OTHER THINGS QUOTE HE SAYS THERE'S ANOTHER PROBLEM JAPAN HAS A TACIT AGREEMENT NOT TO ADD STEEL CAPACITY TO EUROPE WE TAKE THE POSITION THAT THIS IS NOT A NEW MILL IT'S A REPLACEMENT MILL SAYS MR. SEARS THE WRITTEN PROPOSAL FOR THE PLANT ENVISIONS EXPORTS TO THE U. S. ASIA AND THE MIDDLE EAST BUT ULTIMATELY MR. UE SAYS WESTERN EUROPE IS THE TARGET THE CZECHS WORRY HOW EXPORTING CHEAP STEEL WILL AFFECT THEIR CHANCES FOR EUROPEAN UNION MEMBERSHIP A YEAR AGO IN FACT THE E. U. SLAPPED THEM WITH TARIFF QUOTAS BUT MR. UE DISMISSES THESE FEARS OVER TIME HE SAYS ECONOMICS WINS OVER POLITICS MR. SEARS SAYS THE TRADE MINISTRY HAS PROMISED A DECISION ON THE MINIMILL DEAL BY SATURDAY A FEDERAL GRAND JURY IS INVESTIGATING WHETHER DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION OR ITS PARTNER IN A REAL ESTATE INVESTMENT VIOLATED BIDDING RULES IN A LOAN AUCTION CONDUCTED MORE THAN A YEAR AGO BY THE RESOLUTION TRUST CORPORATION DONALDSON THE BROKERAGE ARM OF EQUITABLE COMPANIES PROVIDED FINANCING FOR LOMBARD ILLINOIS BASED GATEWAY CAPITAL ADVISORS' WINNING SIXTY SIX POINT SEVEN MILLION DOLLAR BID IN LATE NINETEEN NINETY TWO FOR NONPERFORMING LOANS ON APARTMENT BUILDINGS MADE BY THE NOW DEFUNCT HOME FEDERAL SAVINGS ASSOCIATION OF KANSAS CITY MISSOURI D. L. J. THEN FORMED A PARTNERSHIP WITH GATEWAY THAT ENTITLES IT TO A PORTION OF PROFITS FROM THE DEAL PRIOR TO BIDDING ON THE PORTFOLIO WHICH CARRIED AN ORIGINAL BOOK VALUE OF ONE HUNDRED TWELVE MILLION DOLLARS ALL POTENTIAL BUYERS SIGNED A PLEDGE NOT TO COMMUNICATE WITH BORROWERS WHOSE LOANS WERE INCLUDED THE R. T. C. WAS AIMING TO PREVENT BIDDERS FROM GAINING AN ADVANTAGE OVER RIVALS BY GATHERING ADDITIONAL FINANCIAL INFORMATION IN AN ATTEMPT TO MORE ACCURATELY ESTIMATE THE VALUE OF THE SOURED LOANS THE U. S. JUSTICE DEPARTMENT IS TRYING TO DETERMINE WHETHER GATEWAY OR D. L. J. HAD IMPROPER DISCUSSIONS WITH ALBERT ICHELSON JUNIOR A DES MOINES IOWA REAL ESTATE SYNDICATOR WITH ABOUT FIFTY MILLION DOLLARS OF LOANS IN THE POOL ACCORDING TO THREE INDIVIDUALS FAMILIAR WITH THE INVESTIGATION THE FEDERAL BUREAU OF INVESTIGATION HAS SUBPOENAED RECORDS FROM GATEWAY D. L. J. AND AN R. T. C. ADVISER ON THE SALE QUOTE THERE WAS NO COLLUSION AND THERE WAS NO ADVANTAGE TO BE GAINED BY HAVING CONVERSATIONS WITH ANYONE QUOTE RESPONDED BARRY FREEMAN A HIGHLAND PARK ILLINOIS LAWYER REPRESENTING GATEWAY IT'S PATHETIC THAT THERE IS EVEN A GRAND JURY INVESTIGATION I WOULD EXPECT THAT THE JUSTICE DEPARTMENT WHEN THEY HAVE ALL THE FACTS WILL DETERMINE THAT NO SUCH THING EXISTED A SPOKESWOMAN FOR D. L. J. DECLINED TO DISCUSS WHETHER THE FIRM'S INVOLVEMENT IS BEING INVESTIGATED OUR ROLE WAS TO FINANCE THE BID MADE BY THE PRINCIPAL GATEWAY SHE SAID WE'RE AWARE OF NOTHING THAT WOULD SUGGEST ANY IMPROPRIETIES IN THE BIDDING PROCESS A RESOLUTION TRUST CORPORATION SPOKESMAN DECLINED TO COMMENT ON THE MATTER OTHER THAN TO SAY THAT THERE ARE A NUMBER OF CASES OUT THERE THAT ARE BEING LOOKED AT THE JUSTICE DEPARTMENT DECLINED TO COMMENT MR. FREEMAN COMPLAINED THAT THE INVESTIGATION AROSE FROM ALLEGATIONS MADE BY AN INDIVIDUAL INDICTED ON A THRIFT RELATED MATTER WHOM HE WOULDN'T IDENTIFY WHO WAS QUOTE LOOKING FOR A WAY TO FIND FAVOR WITH THE GOVERNMENT ALL OF THE FACTS POINT IN THE OPPOSITE DIRECTION OF WRONGDOING HE SAID IT'S VERY ANNOYING THAT THE GOVERNMENT WOULD BASE AN INVESTIGATION ON SOME IRRESPONSIBLE COMMENTARY BY SOMEONE WHO'S IN BIG TROUBLE MR. FREEMAN ARGUED THAT A BIDDER WOULD HAVE HAD NOTHING TO GAIN BY TALKING TO MR. ICHELSON BUT AT LEAST ONE OTHER BIDDER DISAGREED NOTING THAT NOT LONG BEFORE BIDS WERE DUE MR. ICHELSON PLACED A DOZEN LIMITED PARTNERSHIPS THAT BORROWED THE MONEY INTO CHAPTER ELEVEN BANKRUPTCY PROTECTION IF YOU TALKED TO HIM AND KNEW WHAT HE WAS GOING TO DO IN THE BANKRUPTCY PROCEEDINGS IT WOULD HAVE GIVEN YOU A BIG ADVANTAGE SAID ONE OF THE LOSING BIDDERS I REMEMBER STRETCHING OUR BID AS HIGH AS WE COULD IF WE KNEW THIS GUY ICHELSON WAS GOING TO COME OUT OF BANKRUPTCY WE COULD HAVE BID A HIGHER AMOUNT MR. ICHELSON DECLINED TO COMMENT ON THE MATTER MESA INCORPORATED AGREED TO PAY UNOCAL CORPORATION FORTY TWO POINT EIGHT MILLION DOLLARS TO SETTLE A SECURITIES LAWSUIT DATING BACK TO THE HOSTILE TAKEOVER DAYS OF THE MID NINETEEN EIGHTIES FOR UNOCAL THE SETTLEMENT REPRESENTS THE FINAL CHAPTER IN A TORTUOUS SAGA IN WHICH THE LOS ANGELES OIL COMPANY THWARTED A NINETEEN EIGHTY FIVE TAKEOVER EFFORT BY MESA CHAIRMAN BOONE PICKENS BY BUYING BACK SHARES AND LOADING UP WITH DEBT THAT TOOK YEARS TO REDUCE AND RESULTED IN NUMEROUS ASSET SALES AND STAFF CUTS FOR MESA THE SETTLEMENT ALSO CLOSES THE BOOK BUT LEAVES THE DEBT RIDDEN NATURAL GAS EXPLORATION AND PRODUCTION COMPANY IN THE POSITION OF NEEDING TO BORROW MORE MONEY AT HIGH INTEREST RATES TO MAKE THE SETTLEMENT PAYMENT QUOTE WE WANTED TO GET BACK IN THE GAME AND WE COULDN'T UNTIL WE GOT PAST UNOCAL QUOTE SAID A MESA SPOKESMAN IN DALLAS THAT'S WHY WE SETTLED THE CASE MANY INVESTORS THOUGHT MESA WOULD HAVE LOST THE CASE IF IT HAD GONE TO TRIAL AS SCHEDULED NEXT MONTH UNOCAL WAS SEEKING ONE HUNDRED FORTY NINE MILLION DOLLARS ABOUT FIFTY MILLION DOLLARS OF WHICH WAS INTEREST THE SETTLEMENT SPARKED A SURGE IN MESA STOCK WHICH JUMPED SEVENTEEN PERCENT TO SEVEN DOLLARS UP ONE DOLLAR IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MESA SAID IT WOULD TAKE A CHARGE IN THE FOURTH QUARTER OF THIS YEAR ROUGHLY EQUAL TO THE SIZE OF THE SETTLEMENT IN THE NINETEEN NINETY TWO FOURTH QUARTER MESA HAD A NET LOSS OF SEVENTEEN POINT FIVE MILLION DOLLARS OR FORTY FIVE CENTS A SHARE ON REVENUE OF SEVENTY EIGHT POINT FIVE MILLION DOLLARS THE COMPANY'S MAIN GOAL THIS YEAR IS TO REDUCE DEBT WHICH WILL RISE TO ABOUT ONE POINT THREE BILLION DOLLARS BECAUSE OF THE SETTLEMENT THE SPOKESMAN SAID MESA LAST YEAR COMPLETED A DEBT RESTRUCTURING THAT DELAYS SOME INTEREST PAYMENTS FOR SEVERAL YEARS THE SPOKESMAN WOULDN'T ELABORATE ON HOW MESA PLANS TO REDUCE DEBT BUT ACKNOWLEDGED THAT SOME KIND OF OFFERING OR SWAP INVOLVING COMMON SHARES WAS AMONG THE OPTIONS MESA AMASSED ITS DEBT BY MAKING CAPITAL INVESTMENTS AND PAYOUTS ON THE ASSUMPTION THAT NATURAL GAS PRICES WOULD BE MUCH HIGHER THAN THEY ARE TODAY WE'RE ENTERING A NEW ERA THE SPOKESMAN SAID MESA WILL CONSIDER STEPPING UP EXPLORATION ACTIVITIES SOMETHING AT WHICH THE COMPANY HAS SUCCEEDED HISTORICALLY BUT HAS BEEN TOO CASH CONSTRAINED TO UNDERTAKE IN RECENT YEARS HE ADDED THE SIZE OF THE SETTLEMENT IS LESS SIGNIFICANT TO UNOCAL A MUCH LARGER COMPANY WHICH SAID IT WILL RECORD A PRETAX GAIN OF THIRTY THREE MILLION DOLLARS IN THE NINETEEN NINETY FOUR FIRST QUARTER IN THE NINETEEN NINETY THREE PERIOD UNOCAL HAD NET INCOME OF ELEVEN MILLION DOLLARS OR ONE CENT A SHARE ON REVENUE OF TWO POINT THREE TWO BILLION DOLLARS THE RESULTS INCLUDED A ONE TIME CHARGE OF ONE HUNDRED THIRTY MILLION DOLLARS UNOCAL SHARES FELL THIRTY SEVEN POINT FIVE CENTS TO TWENTY EIGHT DOLLARS AND TWENTY FIVE CENTS IN COMPOSITE TRADING ON THE BIG BOARD ALTHOUGH THE TAKEOVER BATTLE AND ENSUING LITIGATION WAS ACRIMONIOUS A UNOCAL SPOKESMAN SAID TEMPERS HAVE CALMED MOST OF THE SIGNIFICANT PLAYERS INVOLVED WITH THIS ARE NO LONGER WITH US THE SPOKESMAN SAID THE COMPANY HAS CHANGED A LOT IN THE INTERVENING TIME HE SAID ADDING THAT THIS WAS JUST ONE MORE THING ON THE LAW DEPARTMENT'S DOCKET THE SUIT STEMMED FROM THE ACCUMULATION OF MORE THAN THIRTEEN PERCENT OF UNOCAL STOCK IN NINETEEN EIGHTY FIVE BY MESA AND ITS SUBSEQUENT TENDER OFFER UNOCAL FENDED OFF THE BID WITH A RECAPITALIZATION PLAN AND MESA ULTIMATELY AGREED TO EXCHANGE SOME UNOCAL STOCK FOR UNOCAL BONDS MESA LATER SOLD THE BONDS UNOCAL'S DEBT SWELLED TO MORE THAN SIX BILLION DOLLARS THAT YEAR ABOUT FOUR POINT SIX BILLION DOLLARS OF WHICH CAME FROM FIGHTING OFF MESA UNOCAL'S DEBT STOOD AT THREE POINT FOUR BILLION DOLLARS AT THE END OF LAST SEPTEMBER UNOCAL SUED MESA IN NINETEEN EIGHTY SIX ALLEGING THAT IT VIOLATED A FEDERAL LAW DESIGNED TO PREVENT COMPANY INSIDERS AND SHAREHOLDERS OF MORE THAN TEN PERCENT OF A COMPANY'S STOCK FROM SEEKING SHORT SWING TRADING PROFITS THE LAW PROVIDES THAT A COMPANY MAY SUE TO RECOVER ANY SUCH PROFITS THAT INVESTORS GAIN FROM THE PURCHASE AND SALE OF ITS STOCK WITHIN A SIX MONTH PERIOD THE RULE IS AIMED AT CURBING SPECULATIVE ABUSE OF INSIDE INFORMATION MESA HAS ARGUED ALL ALONG THAT IT DIDN'T COMMIT ANY VIOLATIONS AND THAT THE SITUATION WAS SO HOSTILE THAT IT COULDN'T BE CONSIDERED AN QUOTE INSIDER QUOTE THE SUIT ADVANCED TO THE SUPREME COURT WHICH IN NINETEEN NINETY TWO DECLINED TO REVIEW A LOWER COURT'S RULING THAT THE CASE SHOULD BE TRIED UNOCAL ALSO SAID THAT VARIOUS PARTNERSHIPS CONTROLLED BY TEXAS OIL MEN CYRIL WAGNER JUNIOR AND JACK E. BROWN AGREED TO SETTLE THE SAME SUIT FOR FOUR POINT SEVEN MILLION DOLLARS THEY HAD JOINED MR. PICKENS IN HIS UNOCAL EFFORTS JAMES H. SMITH FORTY NINE YEARS OLD WAS NAMED PRESIDENT OF MCKESSON DRUG COMPANY THE LARGEST UNIT OF THIS DRUG DISTRIBUTION CONCERN MR. SMITH A SENIOR VICE PRESIDENT OF AVNET INCORPORATED WILL ASSUME HIS NEW JOB IN MID FEBRUARY SUCCEEDING THOMAS B. SIMONE FIFTY ONE WHO WILL LEAVE THE COMPANY ON APRIL FIRST GERALD L. MESSERSCHMIDT WAS ELECTED TO THE NEWLY CREATED POST OF VICE PRESIDENT OF SCIENTIFIC AFFAIRS DOCTOR MESSERSCHMIDT FORTY THREE WILL BE IN CHARGE OF THE MEDICAL DEVICE MAKER'S REGULATORY AFFAIRS UNDER A SETTLEMENT REACHED IN OCTOBER WITH THE JUSTICE DEPARTMENT THE COMPANY AGREED TO PAY SIXTY ONE MILLION DOLLARS IN FINES RELATED TO ITS SALE OF DEFECTIVE CATHETERS USED IN HEART SURGERY THE COMPANY WHICH IS UNDER EXTENSIVE GOVERNMENT SCRUTINY FOR FOUR YEARS ALSO AGREED TO CONSOLIDATE ITS REGULATORY AFFAIRS UNDER ONE EXECUTIVE CHINA AND FRANCE PATCHED UP A YEAR LONG RIFT WITH AN AGREEMENT THAT FRENCH COMPANIES WON'T SELL ANY MORE ARMS TO TAIWAN IN RETURN CHINA WILL END ITS DE FACTO BAN ON GIVING LUCRATIVE CONTRACTS TO FRENCH BUSINESSES WHICH LOST MILLIONS OF DOLLARS IN SALES AND A SUBWAY CONTRACT AFTER FRANCE AGREED TO SELL SIXTY MIRAGE FIGHTER PLANES TO TAIWAN IN LATE NINETEEN NINETY TWO THE MIRAGE CONTRACT WILL BE HONORED AND SPARE PARTS WILL BE DELIVERED BUT THE FRENCH GOVERNMENT WON'T ALLOW FUTURE SALES FRENCH FOREIGN MINISTER ALAIN JUPPE TOLD A NEWS CONFERENCE IN PARIS TAIWAN A CHINESE ISLAND PROVINCE BECAME THE HAVEN IN NINETEEN FORTY NINE OF THE NATIONALIST CHINESE AFTER THEY LOST TO THE COMMUNISTS IN A CIVIL WAR THEY STILL CLAIM TO BE THE LEGITIMATE GOVERNMENT OF CHINA THE MIRAGE SALE WAS APPROVED BY FRANCE'S FORMER SOCIALIST GOVERNMENT THE CONSERVATIVES WHO WON POWER IN FRENCH ELECTIONS LAST MARCH RESISTED CHINESE APPEALS TO CANCEL THE SALE BUT SHOWED THEIR CONCERN OVER THE DETERIORATED RELATIONSHIP BY SENDING A SPECIAL ENVOY IN DECEMBER TO HOLD SECRET TALKS WITH CHINESE LEADERS THE ACCORD WAS A RESULT OF THAT VISIT CHINA'S OFFICIAL XINHUA NEWS AGENCY SAID AMERICAN TELEPHONE AND TELEGRAPH COMPANY SAID IT WILL PAY A ONE HUNDRED SEVENTY FIVE THOUSAND DOLLAR FINE AND PLEAD GUILTY TO A MISDEMEANOR CHARGE THAT IT VIOLATED THE FEDERAL CLEAN WATER ACT WHILE ATTEMPTING TO CLEAN UP CONTAMINATED GROUNDWATER AT A MANUFACTURING PLANT THE JUSTICE DEPARTMENT HAD CHARGED THAT AN A. T. AND T. MICROELECTRONIC PARTS MANUFACTURING PLANT IN READING PENNSYLVANIA VIOLATED THE LAW IN NINETEEN NINETY ONE EQUIPMENT USED TO FILTER GROUNDWATER AT THE PLANT DISCHARGED QUOTE SMALL QUOTE QUANTITIES OF POLLUTANTS ON THE PLANT'S PREMISES A. T. AND T. SAID WE'RE CHARACTERIZING IT AS A TECHNICAL VIOLATION A SPOKESMAN SAID PACIFIC TELESIS GROUP SAID ITS PACTEL CELLULAR UNIT WILL INVEST NEARLY TWO HUNDRED FIFTY MILLION DOLLARS OVER FIVE YEARS TO BUILD A DIGITAL WIRELESS NETWORK IN CALIFORNIA AND GEORGIA PACTEL SAID THE NETWORK WILL INCORPORATE THE CODE DIVISION MULTIPLE ACCESS SYSTEM OR CDMA ONE OF TWO MAIN COMPETING DIGITAL STANDARDS BEING ADOPTED IN THE U. S. A HOST OF COMPANIES INCLUDING SEVERAL BABY BELLS HAVE MADE VERBAL COMMITMENTS TO BACK CDMA CDMA SYSTEMS ASSIGN A SPECIAL ELECTRONIC CODE TO EACH CALL SIGNAL ALLOWING MORE CALLS TO OCCUPY THE SAME SPACE AND BE SPREAD OVER AN ENTIRE FREQUENCY BAND AS A RESULT THE CALL HANDLING CAPACITY IS BOOSTED BY TWENTY TIMES COMPARED WITH CONVENTIONAL ANALOG CELLULAR SYSTEMS OTHER COMPANIES SUCH AS MCCAW CELLULAR COMMUNICATIONS INCORPORATED HOWEVER ARE SPENDING MILLIONS TO BUILD A COMPETING DIGITAL SYSTEM KNOWN AS TIME DIVISION MULTIPLE ACCESS OR TDMA THIS TECHNOLOGY PLACES EACH CALL SIGNAL INTO A TIME SLOT AND TRANSMITS IT WITHIN A SINGLE FREQUENCY QUOTE TDMA IS HERE TODAY AND HAS BEEN SINCE LAST MARCH QUOTE A MCCAW SPOKESMAN SAID JEFFREY HINES A PAINEWEBBER ANALYST SAYS IT IS TOO EARLY TO TELL WHICH OF THE COMPETING TECHNOLOGIES IS SUPERIOR BUT BECAUSE THE INCOMPATIBLE TECHNOLOGIES ARE ALREADY STARTING TO BE DEPLOYED THE CUSTOMER IS GOING TO LOSE OUT IN THE END VARIOUS FEATURES ON A TDMA DIGITAL PHONE FOR INSTANCE CAN'T ALWAYS BE USED IN A REGION WHERE A CDMA SYSTEM HAS BEEN DEPLOYED AND VICE VERSA PRODUCER PRICES FELL ZERO POINT ONE PERCENT IN DECEMBER THE LABOR DEPARTMENT SAID DRIVEN DOWN BY SHARPLY FALLING ENERGY PRICES IT WAS LOWER ENERGY PRICES THAT HELPED KEEP WHOLESALE PRICES IN CHECK FOR THE ENTIRE YEAR LED BY A SIXTEEN POINT EIGHT PERCENT DROP IN GASOLINE PRICES THE PRICE OF FINISHED GOODS EDGED UP ONLY ZERO POINT TWO PERCENT IN NINETEEN NINETY THREE FOLLOWING A ONE POINT SIX PERCENT INCREASE IN NINETEEN NINETY TWO PRICES IN NINETEEN NINETY ONE FELL ZERO POINT ONE PERCENT ENERGY PRICES IN DECEMBER FELL THREE POINT FIVE PERCENT BUT OTHER FACTORS ALSO HELPED KEEP INFLATION IN CHECK THE CORE RATE OF INFLATION WHICH EXCLUDES THE FOOD AND ENERGY SECTORS ROSE BY A MODEST ZERO POINT TWO PERCENT IN DECEMBER AND ZERO POINT FOUR PERCENT FOR THE YEAR THE BEST SHOWING SINCE NINETEEN SEVENTY FOUR WHEN THE DEPARTMENT BEGAN TRACKING THESE PRICES ANALYSTS SAY THE SLUGGISH WORLDWIDE ECONOMY AND THE SLACK U. S. LABOR MARKET HAS KEPT THE LID ON PRICES AS WELL AND EXPECT THE GOOD INFLATION NEWS TO LAST AT LEAST FOR THE NEXT TWO YEARS ANALYSTS EXPECT THE NEWS ON CONSUMER PRICES SCHEDULED TO BE RELEASED TODAY TO BE JUST AS GOOD FOR THE TWELVE MONTHS ENDED IN NOVEMBER CONSUMER PRICES WERE UP JUST TWO POINT SEVEN PERCENT THE FACT THAT PRICES ARE STEADY DESPITE RECENT IMPROVEMENTS IN ECONOMIC ACTIVITY IS PARTICULARLY ENCOURAGING IN RECENT MONTHS THE MANUFACTURING SECTOR HAS GAINED MOMENTUM AND RETAIL SALES ARE RISING CONSISTENTLY AS WELL THE FACT THAT INFLATION HAS BEEN WELL BEHAVED HAS HELPED TO EASE FEARS THAT THE FEDERAL RESERVE MAY BE READYING ITSELF FOR A BOOST IN INTEREST RATES DESPITE THE LOW INFLATION OVERALL LAST MONTH HAD A FEW LARGE INCREASES AT THE WHOLESALE LEVEL CAR PRICES ROSE ZERO POINT SIX PERCENT AND TOBACCO PRICES JUMPED ONE POINT SEVEN PERCENT MUCH LIKE FOOD AND ENERGY THESE TWO PRODUCTS HAVE SHOWN VOLATILE CHANGES FROM MONTH TO MONTH PRICES OF INTERMEDIATE GOODS FELL ZERO POINT TWO PERCENT IN DECEMBER WHILE PRICES OF CRUDE GOODS DECLINED TWO POINT TWO PERCENT WITHOUT FOOD AND ENERGY INTERMEDIATE GOODS EDGED UP ZERO POINT TWO PERCENT WHILE CRUDE GOODS ON THIS BASIS JUMPED TWO POINT FOUR PERCENT ANALYSTS NOTED THAT THIS RISE COMES ON TOP OF INCREASES OF ONE POINT SEVEN PERCENT IN NOVEMBER AND ZERO POINT NINE PERCENT IN OCTOBER QUOTE INFLATION AT THE CRUDE LEVEL OF PRODUCTION TYPICALLY DOESN'T FIND ITS WAY INTO FINISHED GOODS BUT THESE INCREASES ARE NEVERTHELESS WORTH WATCHING QUOTE SAID MARILYN SCHAJA MONEY MARKET ECONOMIST AT DONALDSON LUFKIN AND JENRETTE MOST OF THE RISE IN CRUDE PRICES HAS BEEN DUE TO INCREASES IN THE COST OF METAL AND LUMBER SHE SAID ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS KAREN R. OSAR WAS NAMED VICE PRESIDENT AND TREASURER OF THIS INDUSTRIAL CORPORATION MS. OSAR FORTY FOUR YEARS OLD WAS PREVIOUSLY MANAGING DIRECTOR IN THE CORPORATE FINANCE GROUP OF J. P. MORGAN AND COMPANY SHE SUCCEEDS JAMES N. CAUBLE WHO WAS PROMOTED LAST YEAR TO SENIOR VICE PRESIDENT FOR FINANCE AND ADMINISTRATION FOR TENNECO EUROPE LIMITED THE CHICAGO BOARD OPTIONS EXCHANGE SET A JANUARY TWENTY EIGHTH LAUNCH DATE TO TRADE OPTIONS CONTRACTS BASED ON AN INDEX OF STOCKS ON THE NASDAQ STOCK MARKET THE OPTIONS WILL WORK SIMILARLY TO THE C. B. O. E.'S POPULAR OPTIONS BASED ON INDEXES OF THE STANDARD AND POOR'S ONE HUNDRED AND FIVE HUNDRED LEADING EXCHANGE TRADED STOCKS EXCEPT THAT THEY WILL TRACK ONE HUNDRED NONFINANCIAL NASDAQ STOCKS QUOTE OPTIONS TRADED ON THE NASDAQ ONE HUNDRED WILL OFFER INVESTORS A NEW TOOL FOR PARTICIPATING IN THE HIGHLY TRADED ISSUES ON NASDAQ QUOTE SAID C. B. O. E. CHAIRMAN ALGER B. CHAPMAN HILLARY RODHAM CLINTON'S CENTRAL ROLE IN THE WHITEWATER CONTROVERSY RAISES AWKWARD QUESTIONS FOR REPUBLICANS AND DEMOCRATS ALIKE AND BECAUSE THE FIRST LADY IS ALSO THE PRESIDENT'S CHIEF ADVOCATE ON HEALTH CARE REFORM THE STAKES GO BEYOND POLITICS TO POLICY IN WHAT HAS BECOME A PARTISAN GAME OF IMAGE CONTROL REPUBLICANS ARE WARY OF SEEMING TOO AGGRESSIVE IN COMMENTING ON MRS. CLINTON'S POSITION REPRESENTATIVE JIM LEACH OF IOWA THE SENIOR REPUBLICAN ON THE HOUSE BANKING COMMITTEE HAS CAREFULLY AVOIDED CRITICISM OF MRS. CLINTON EVEN AS HE HAS PRESSED FOR A MORE VIGOROUS INVESTIGATION INTO THE CONTROVERSY AND SENATE G. O. P. LEADER ROBERT DOLE OF KANSAS SCARCELY MENTIONED HER NAME IN A LONG NEWS CONFERENCE YESTERDAY IN WHICH HE CALLED FOR A SELECT COMMITTEE TO INVESTIGATE WHITEWATER QUOTE IF THERE SHOULD BE A LESSON FROM NINETEEN NINETY TWO IT IS THAT YOU'RE ON VERY TENUOUS GROUND WHEN YOU TRY TO DO A BUMPER SHOT AT AN OPPONENT THROUGH SOMEBODY'S FAMILY MEMBER QUOTE SAYS G. O. P. CONSULTANT BILL MCINTURFF DEMOCRATS MEANWHILE ARE CONCERNED THAT THE CONTROVERSY COULD HURT HER EFFECTIVENESS IN PROMOTING HEALTH CARE REFORM BEFORE CONGRESS AND WITHIN THE WHITE HOUSE THERE ARE TENSIONS OVER HER ROLE IN THE AFFAIR AND HER REPORTED RESISTANCE TO THE APPOINTMENT OF A SPECIAL COUNSEL TO INVESTIGATE THE MATTER AN APPOINTMENT PRESIDENT CLINTON FINALLY AGREED TO YESTERDAY AMID THIS BACKBITING BETSEY WRIGHT A FAMILY FRIEND AND MR. CLINTON'S FORMER GUBERNATORIAL CHIEF OF STAFF ACCUSES WHITE HOUSE AIDES OF FUNDAMENTAL SEXISM FOR THEIR PORTRAYAL OF THE FIRST LADY IN COMMENTS TO JOURNALISTS IT WAS AN ACT OF DISLOYALTY MS. WRIGHT SAID IN AN INTERVIEW YESTERDAY IT MADE BILL CLINTON LOOK LIKE A WIMP GIVEN THIS BLOODLETTING AMONG THE DEMOCRATS AND AGREEING WITH MR. MCINTURFF THAT ATTACKS ON MRS. CLINTON BACKFIRED IN THE PRESIDENTIAL CAMPAIGN MOST REPUBLICANS ARE BIDING THEIR TIME BUT GIVEN THE POLITICAL STAKES INCLUDING HEALTH CARE OTHERS ARE CLEARLY TEMPTED WE'RE PROBABLY BEING OVERLY PRUDENT IN FOLLOWING THE DICTUM DON'T ATTACK A LADY SAYS FRED STEEPER GEORGE BUSH'S POLLSTER IN NINETEEN NINETY TWO CITING RECENT FOCUS GROUPS OF RANK AND FILE VOTERS VINCE BREGLIO A REPUBLICAN POLLSTER SAYS MRS. CLINTON IS TOO MUCH A PART OF THE POLICY APPARATUS OF THE ADMINISTRATION TO BE IGNORED WHEN PEOPLE LOOK AT THAT COUPLE WHAT THEY SEE IS MR. OUTSIDE AND MS. INSIDE MR. BREGLIO SAYS QUOTE THAT'S THE ROLE THEY'VE DEFINED FOR THEMSELVES IF THERE'S A PROBLEM OF THIS MAGNITUDE YOU SIMPLY CAN'T TURN YOUR BACK BECAUSE SHE'S THE PRESIDENT'S WIFE AS AN ARKANSAS ATTORNEY MRS. CLINTON WAS BOTH A PARTNER IN THE WHITEWATER DEVELOPMENT COMPANY REAL ESTATE INVESTMENT AND REPRESENTED NOW DEFUNCT MADISON GUARANTY SAVINGS AND LOAN BEFORE STATE AUTHORITIES WHILE HER HUSBAND WAS GOVERNOR A MEMBER OF THE ROSE LAW FIRM IN LITTLE ROCK SHE AND ANOTHER ROSE ATTORNEY ACTED AS MADISON'S COUNSEL IN NINETEEN EIGHTY FIVE WHEN THE TROUBLED THRIFT WAS STRUGGLING TO MEET FEDERAL NET WORTH REQUIREMENTS AND IN A LETTER TO THE ARKANSAS SECURITIES DEPARTMENT MRS. CLINTON ARGUED THAT MADISON SHOULD BE ALLOWED TO PURSUE AN UNUSUAL RECAPITALIZATION PLAN RELYING ON THE ISSUANCE OF PREFERRED STOCK IN THE S. AND L. THIS IS NOT PRIMARILY ABOUT BILL CLINTON IT IS PRIMARILY ABOUT HILLARY CLINTON SAYS VIN WEBER A REPUBLICAN COMMENTATOR AND FORMER CONGRESSMAN WHO NOW LEADS THE CONSERVATIVE ADVOCACY GROUP EMPOWER AMERICA THE BIGGEST IMPLICATION OF ALL OF THIS IS HEALTH CARE ONE WAY OR ANOTHER IT WILL AFFECT THE HEALTH CARE DEBATE SAYS FRANK LUNTZ A CONSERVATIVE CONSULTANT AND FORMER POLLSTER FOR ROSS PEROT QUOTE SHE'S THE MAIN CARRIER OF THE MESSAGE AND IF THE CARRIER GETS DAMAGED THE MESSAGE BECOMES A LOT LESS CREDIBLE QUOTE THE TIMING IS ALL THE MORE AWKWARD SINCE THE ADMINISTRATION WAS HOPING THESE WEEKS WOULD HELP IT REGAIN LOST MOMENTUM ON THE HEALTH CARE ISSUE HAROLD ICKES WHO WAS RECENTLY BROUGHT INTO THE WHITE HOUSE TO HELP COORDINATE THE ADMINISTRATION'S HEALTH CARE CAMPAIGN WITH MRS. CLINTON HAS INSTEAD BEEN INCREASINGLY DRAWN INTO THE WHITEWATER MANEUVERING AND TO THE EXTENT THAT MRS. CLINTON IS DISTRACTED IT COULD STRENGTHEN THE HAND OF THOSE ARGUING FOR FURTHER COMPROMISE ON THE GOALS SET OUT IN HER REFORM PACKAGE IF IT TURNS OUT BADLY FOR HER SURE THE HEALTH CARE PUSH IS DAMAGED AND YOU END UP BEING COOPERIZED SAYS G. O. P. THEORETICIAN KEVIN PHILLIPS REFERRING TO AN ALTERNATIVE REFORM BILL BACKED BY DEMOCRATIC REPRESENTATIVE JIM COOPER OF TENNESSEE THE STAKES ARE ENORMOUS THE DEMOCRATS' STAKE IN HEALTH CARE WAS IN FACT A DRIVING FORCE IN THE DECISION YESTERDAY TO APPOINT A SPECIAL COUNSEL AND THE WHITE HOUSE HOPES TO CLEAR THE DECKS AND RETURN TO A LEGISLATIVE AGENDA THAT IT BELIEVES IS ULTIMATELY CRITICAL TO THE PRESIDENT'S OWN POLITICAL CREDIBILITY HEALTH CARE IS ABOUT HIM AND HE WILL BE ABOUT HEALTH CARE SAID ONE OFFICIAL LATER SHE WILL GET CREDIT BUT IT ISN'T ABOUT HER MATCHED AGAINST HER CRITICS TOO IS MRS. CLINTON'S CONSIDERABLE POPULARITY IF YOU ATTACK HILLARY CLINTON YOU'RE ATTACKING UPHILL SAYS DEMOCRATIC POLLSTER MARK MELLMAN AND IN THEIR CALCULATED RESTRAINT THUS FAR REPUBLICANS RISK BEING SEEN AS PATRONIZING IN THEIR ATTITUDE TOWARD WOMEN QUOTE THE CHANGE SHE HAS BROUGHT ABOUT TO EVALUATING THE WIFE OF THE PRESIDENT IS THAT SHE IS ACCOUNTABLE FOR HERSELF QUOTE SAYS HARRIETT WOODS WHO HEADS THE NATIONAL WOMEN'S POLITICAL CAUCUS WE WOMEN SEEK THE GLORY BUT WE ALSO HAVE TO TAKE THE CONSEQUENCES WHEN WE MAKE MISTAKES I DON'T KNOW IF SHE HAS MADE MISTAKES BUT IF SHE HAS I HOPE SHE WOULD BE EQUALLY ACCOUNTABLE JAMES M. PERRY CONTRIBUTED TO THIS ARTICLE THE CLINTON ADMINISTRATION PLANS TO HOLD BACK COMMITMENTS OF NEW AID TO RUSSIA UNTIL IT WINS ASSURANCES THAT PRESIDENT BORIS YELTSIN INTENDS TO CONTINUE HIS MARKET ORIENTED ECONOMIC REFORMS QUOTE THE PACE OF SUPPORT WILL REFLECT THE PACE OF REFORM QUOTE AN ADMINISTRATION OFFICIAL SAID SHORTLY BEFORE PRESIDENT CLINTON ARRIVED HERE TO DISCUSS ARMS CONTROL ECONOMICS AND FOREIGN POLICY INTERESTS CONGRESS LAST FALL APPROPRIATED TWO POINT FIVE BILLION DOLLARS IN AID TO THE FORMER SOVIET REPUBLICS MUCH OF WHICH HASN'T BEEN DISBURSED YET BUT THE U. S. CLEARLY WANTS TO SEND A MESSAGE TO MR. YELTSIN AND HIS OPPONENTS THAT THE U. S. AS WELL AS OTHER WESTERN GOVERNMENTS AND THE INTERNATIONAL FINANCIAL INSTITUTIONS WANTS REASSURANCE THAT ECONOMIC REFORMS WILL CONTINUE THE VISIT COMES AT AN AWKWARD TIME MR. YELTSIN IS FACING A NEW PARLIAMENT FILLED WITH MEMBERS WHO CHARGE THAT HIS EFFORTS TO MOVE THE NATION TO CAPITALISM FROM COMMUNISM ARE SHRINKING THE ECONOMY AND THROWING PEOPLE OUT OF WORK THE ADMINISTRATION IS LOOKING FOR SIGNS OF MR. YELTSIN'S CONTINUING COMMITMENT TO POLICIES THAT ARE TURNING STATE OWNED BUSINESSES PRIVATE CUTTING SUBSIDIES AND DAMPING DOWN INFLATION THE SIGNS COULD INCLUDE KEEPING REFORM ADVOCATES IN THE GOVERNMENT AND ADHERENCE TO BUDGETARY POLICIES THAT REDUCE SUBSIDIES OF NONCOMPETITIVE HEAVY INDUSTRIES SUCH AS COAL AND STEEL INSTEAD OF SPENDING MONEY TO PROP UP INDUSTRIES THAT CAN'T COMPETE IN WORLD MARKETS THE U. S. WANTS RUSSIA TO BOOST UNEMPLOYMENT AND OTHER SOCIAL BENEFITS NEEDED TO EASE THE PAIN OF ECONOMIC ADJUSTMENT THIS IS A CRITICAL JUNCTURE FOR THE RUSSIAN GOVERNMENT AND ITS REFORM POLICIES TREASURY SECRETARY LLOYD BENTSEN SAID AFTER A ROUND OF MEETINGS BUT IT'S ALSO A TEST OF WASHINGTON'S BELIEF THAT IT CAN USE WESTERN AID TO HELP MR. YELTSIN STAY THE COURSE THAT HE'S ALREADY CHARTED IN ANY EVENT THE U. S. ISN'T COMING WITH MUCH TO OFFER MR. BENTSEN'S DISCUSSIONS FOCUSED ON WAYS TO SPEED THE DISTRIBUTION OF AID THAT ALREADY HAS BEEN PROMISED MR. CLINTON IS PREPARED TO FLESH OUT THE U. S. CONTRIBUTION TO A PREVIOUSLY ANNOUNCED PROGRAM TO AID EQUITY INVESTMENT IN NEWLY PRIVATE RUSSIAN BUSINESSES IN ADDITION THE U. S. HAS BEEN TALKING TO THE WORLD BANK THE INTERNATIONAL MONETARY FUND AND REPRESENTATIVES OF THE GROUP OF SEVEN INDUSTRIAL NATIONS ABOUT ACCELERATING AND ULTIMATELY EXPANDING AID TO RUSSIA IF REFORMS CONTINUE LATE LAST YEAR THE YELTSIN GOVERNMENT MADE SIGNIFICANT PROGRESS ON TWO FRONTS CONTROLLING INFLATION AND SLOWING THE GROWTH OF ITS BUDGET DEFICIT INFLATION FELL FROM THIRTY PERCENT A MONTH EARLY IN THE YEAR TO TWELVE PERCENT IN DECEMBER THE DIFFERENCE BETWEEN ANNUAL INFLATION OF TWO THOUSAND TWO HUNDRED TWENTY NINE PERCENT AND TWO HUNDRED NINETY PERCENT ACCORDING TO U. S. TREASURY CALCULATIONS IN ADDITION IT HELD THE BUDGET DEFICIT TO TEN PERCENT OF NATIONAL ECONOMIC OUTPUT DOWN FROM EIGHTEEN PERCENT PROJECTED IN THE MIDDLE OF THE YEAR AND THE TWENTY FIVE PERCENT THE PARLIAMENT THOUGHT APPROPRIATE BUT THE IMPROVEMENTS TOOK PLACE AFTER MR. YELTSIN DISMISSED THE PARLIAMENT LAST FALL GIVING HIM A FREER HAND TO CARRY OUT HIS POLICIES NOW IN THE FACE OF A MORE HOSTILE PARLIAMENT IT'S UNCLEAR WHAT THE PRESIDENT WANTS TO DO AND IT'S UNCLEAR WHAT THIS TEAM WILL BE SAID A WORLD BANK OFFICIAL IN MOSCOW THE DANGERS OF PROVIDING MORE AID UNTIL THE SITUATION HAS STABILIZED ARE OBVIOUS NU KOTE HOLDING INCORPORATED PETER D. KUNOTH FORTY EIGHT YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF PRINTING SUPPLIES SUCCEEDING DAVID F. BRIGANTE FORTY ONE WHO REMAINS CHIEF EXECUTIVE OFFICER MR. KUNOTH WAS FORMERLY VICE PRESIDENT AND GENERAL MANAGER OF AVERY DENNISON CORPORATION AN OFFICE SUPPLIES COMPANY CHINA SAID IT WOULD REFUND ANY INCREASES IN FOREIGN FUNDED COMPANIES' TAX PAYMENTS UNDER A NATIONAL TAX SYSTEM THAT TOOK EFFECT JANUARY FIRST SEEKING TO ALLAY CONCERNS ABOUT THE CHANGES AMONG FOREIGN COMPANIES THE GOVERNMENT SAID THE TAX BURDEN FOR MOST OF THEM WON'T CHANGE MUCH PREFERENTIAL BUSINESS INCOME TAXES FOR FOREIGN FUNDED COMPANIES REMAIN ON THE BOOKS BUT SALES LEVIES HAVE BEEN REPLACED BY A SEVENTEEN PERCENT VALUE ADDED TAX AN EXCISE TAX AND A BUSINESS TAX ON SERVICES THAT APPLY TO FOREIGN AND DOMESTIC FIRMS ALIKE THE PROMISED REFUNDS WILL APPLY ONLY TO COMPANIES THAT RECEIVED INVESTMENT APPROVALS BEFORE THE END OF LAST YEAR RELIEF WILL APPLY FOR VENTURES' FIRST FIVE YEARS AFTER WHICH FOREIGN FIRMS MUST COMPETE ON EQUAL TERMS WITH CHINESE COMPANIES THE NEW TAX SYSTEM AIMED AT STRENGTHENING EFFORTS TO ADOPT ASPECTS OF A MARKET ECONOMY IS DESIGNED TO CHANNEL SIXTY PERCENT OF TAX REVENUE TO THE CENTRAL GOVERNMENT UP FROM FORTY PERCENT NOW TO FINANCE NATIONAL DEVELOPMENT PROJECTS AND CONTROL THE DEFICIT THE NUMBER OF PEOPLE WITHOUT JOBS IN RUSSIA IS EXPECTED TO GROW SHARPLY TO SEVEN MILLION BY THE END OF NEXT YEAR IF ECONOMIC REFORMS CONTINUE AND INSOLVENT ENTERPRISES ARE FORCED TO SHED IDLE WORKERS AFTER OPPONENTS OF REFORM DID UNEXPECTEDLY WELL IN PARLIAMENTARY ELECTIONS LAST MONTH MANY OFFICIALS AND ECONOMISTS HAVE URGED SOFTENING THE FINANCIAL STABILIZATION PROGRAM TO PREVENT WIDESPREAD UNEMPLOYMENT OFFICIALLY ONLY ONE MILLION PEOPLE OR ONE PERCENT OF THE WORK FORCE ARE UNEMPLOYED BUT OFFICIALS SAID FOUR MILLION PEOPLE DON'T HAVE WORK FOR A RATE OF FIVE PERCENT THAILAND APPROVED AN EIGHTY TWO POINT THREE MILLION DOLLAR PLAN FOR A TRAFFIC CONTROL SYSTEM IN CHIANG MAI THE COUNTRY'S SECOND LARGEST CITY TO BE COMPLETED FOR THE NINETEEN NINETY FIVE SOUTHEAST ASIAN GAMES THERE THE PLAN ALSO CALLS FOR CONSTRUCTION OF A RING ROAD AND STUDIES FOR A LIGHT RAIL COMMUTER LINE IN THE CITY THREE HUNDRED SIXTY MILES NORTH OF BANGKOK THE GOVERNMENT WANTS TO MAKE CHIANG MAI A HUB OF TRADE TOURISM INDUSTRY AND EDUCATION WITHOUT TRAFFIC PROBLEMS CHIANG MAI'S POPULATION HAS SOARED FROM THIRTY THOUSAND FIVE DECADES AGO TO FOUR HUNDRED THOUSAND SWELLED BY ARRIVALS FROM THE CROWDED CAPITAL SINCE THAILAND'S ECONOMIC BOOM BEGAN IN THE NINETEEN EIGHTIES ROMANIA PLANS TO ACCELERATE ITS PRIVATIZATION PROGRAM THIS YEAR CONCENTRATING ON THE INDUSTRIAL SECTOR WHICH REMAINS LARGELY STATE OWNED SELL OFFS LAST YEAR TOTALED TWO HUNDRED THIRTY NINE MOSTLY BUILDING AND TRADING COMPANIES THIS YEAR ROMANIA INTENDS TO PUT TWO THOUSAND THREE HUNDRED SIXTY EIGHT ENTERPRISES INTO PRIVATE HANDS ONE THOUSAND NINE HUNDRED THIRTY SMALL BUSINESSES FOUR HUNDRED THREE MIDSIZE ENTERPRISES AND THIRTY FIVE LARGE COMPANIES IN A BID TO END FOUR DECADES OF BATTLES THE KAREN NATIONAL UNION OF ETHNIC MINORITY REBELS DECIDED TO HOLD PEACE TALKS WITH THE MILITARY JUNTA THE KAREN COMMANDER GENERAL BO MYA ALSO LEADS THE OPPOSITION UMBRELLA GROUP THE DEMOCRATIC ALLIANCE OF BURMA THE GOVERNMENT LAST MONTH REJECTED A KAREN PROPOSAL FOR DAB PEACE TALKS ON BEHALF OF ALL ALLIANCE MEMBERS SMALLER FACTIONS HAVE SINCE STRUCK CEASE FIRE DEALS THE KAREN IS THE STRONGEST OF A DOZEN ETHNIC FORCES THAT HAVE SOUGHT AUTONOMY SINCE BURMA GAINED INDEPENDENCE FROM BRITAIN IN NINETEEN FORTY EIGHT THE SWISS GOVERNMENT PROPOSED TIGHTENING THE MONEY LAUNDERING LAW BY REQUIRING BANKS FINANCIAL INSTITUTIONS AND OTHERS TO DISCLOSE MORE INFORMATION ON CUSTOMERS AND TRANSACTIONS THE EXPANDED DISCLOSURE RULES TO BE INTRODUCED IN PARLIAMENT IN THE SPRING WOULD APPLY TO CASH TRANSACTIONS OF AT LEAST TWENTY FIVE THOUSAND SWISS FRANCS SIXTEEN THOUSAND NINE HUNDRED TWENTY FIVE DOLLARS VIOLATORS COULD BE JAILED FOR SIX MONTHS OR FINED SIXTY SEVEN THOUSAND SEVEN HUNDRED DOLLARS PARLIAMENT LAST MONTH REJECTED PROPOSALS TO LOOSEN BANK SECRECY LAWS TO AID IN INTERNATIONAL CRIMINAL INQUIRIES A SAINT PETERSBURG OPTICAL COMPANY WILL BE THE FIRST RUSSIAN DEFENSE CONTRACTOR TO BE FREED COMPLETELY FROM STATE CONTROL IN TURNING ENTERPRISES OVER TO PRIVATE OWNERSHIP SINCE LATE NINETEEN NINETY TWO THE GOVERNMENT HAS HUNG ON TO MILITARY SUPPLIERS INVESTORS MAY BID FOR SHARES IN LENINGRAD OPTICAL MECHANICAL AMALGAMATION CALLED LOMO WHICH MAKES MOST OF THE OPTICAL AND LASER PRODUCTS USED BY RUSSIA'S MILITARY AND SPACE PROGRAMS PRIVATIZATION VOUCHERS WILL BE ACCEPTED FOR AT LEAST THIRTY PERCENT OF LOMO'S SHARES IN AN AUCTION THROUGH FEBRUARY SEVENTH THE STATE WILL RETAIN A TWENTY PERCENT STAKE THAT WILL BE LEGALLY ENTRUSTED TO LOMO DIRECTORS THE REMAINDER OF THE COMPANY WILL BE OWNED BY ITS WORKERS LOMO IN THE PAST YEAR HAS SLASHED ITS PAYROLL THIRTY FIVE PERCENT TO FIFTEEN THOUSAND EMPLOYEES FROM TWENTY THREE THOUSAND STATE OWNED COMPANIES TYPICALLY WERE HUGELY OVERSTAFFED AS THE GOVERNMENT SOUGHT TO MAINTAIN FULL EMPLOYMENT ABOUT TWENTY PERCENT OF LOMO'S PRODUCTION IS DEFENSE WORK DOWN FROM SIXTY PERCENT THREE YEARS AGO THE LEBANESE GOVERNMENT BACKED SOLIDERE REDEVELOPMENT COMPANY SAID ABOUT TWENTY THOUSAND ARAB INVESTORS BOUGHT SHARES FOR A TOTAL OF NINE HUNDRED TWENTY SIX MILLION DOLLARS TO REBUILD BEIRUT IT MARKS THE BIGGEST INJECTION OF PRIVATE CAPITAL FOR RECONSTRUCTION SINCE THE FIFTEEN YEAR CIVIL WAR ENDED IN NINETEEN NINETY BRITAIN'S WATER RESEARCH ASSOCIATION ISSUED A BINDING POLICY TO ELIMINATE SEXIST TERMS IN PLUMBING FOR EXAMPLE BALLCOCKS MUST BE CALLED FLOAT OPERATED VALVES AND VIOLATORS MAY BE FINED IN RESPONSE THE TWENTY THOUSAND MEMBER NATIONAL PLUMBERS ASSOCIATION SAID QUOTE THIS IS POLITICAL CORRECTNESS GONE MAD QUOTE KIMBERLY CLARK CORPORATION DALLAS PAUL S. GEISLER FIFTY TWO YEARS OLD FORMERLY GROUP PRESIDENT FEMININE AND ADULT CARE WAS NAMED TO THE NEWLY CREATED POST OF PRESIDENT ASIA WITH RESPONSIBILITY FOR OPERATIONS IN THAILAND MALAYSIA SINGAPORE AND THE PHILIPPINES AS WELL AS RESPONSIBILITY FOR LICENSEES THROUGHOUT ASIA HE WILL BE SUCCEEDED BY KATHI P. SEIFERT FORTY FOUR FORMERLY PRESIDENT FEMININE CARE SECTOR MS. SEIFERT WILL BE RESPONSIBLE FOR THE COMPANY'S FEMININE AND ADULT CARE BUSINESSES IN THE U. S. AND CANADA MS. SEIFERT WILL BE SUCCEEDED BY THOMAS E. WILSON FORTY ONE WHO HAS MOST RECENTLY BEEN BUSINESS MANAGER OF THE COMPANY'S WET WIPES OR ITS HUGGIES BRAND BABY WIPES BUSINESS AND NEW INFANT CARE PRODUCTS KIMBERLY CLARK IS A MAKER OF HOUSEHOLD PERSONAL CARE AND HEALTH CARE PRODUCTS AS WELL AS NEWSPRINT AND PREMIUM BUSINESS CORRESPONDENCE AND SPECIALTY PAPERS DAVID GRIEVES DIRECTOR AND VICE CHAIRMAN WILL RETIRE AT THE ANNUAL GENERAL MEETING JULY TWENTY SEVENTH OF THIS PRODUCER OF STEEL AND STEEL PRODUCTS THE COMPANY ADDED THAT JEFFREY EDDINGTON HAS BEEN APPOINTED EXECUTIVE DIRECTOR IT DIDN'T SAY WHO WOULD SUCCEED MR. GRIEVES AS VICE CHAIRMAN KENDALL SQUARE RESEARCH CORPORATION MIRED IN AN ACCOUNTING SCANDAL REPLACED ITS AUDITOR PRICE WATERHOUSE AND COMPANY IN WHAT IT CALLED QUOTE A FEE DISPUTE QUOTE THE ACTION CAME LESS THAN TWO MONTHS AFTER PRICE WITHDREW ITS ENDORSEMENT OF KENDALL'S PREVIOUSLY REPORTED RESULTS FORCING KENDALL TO RESTATE REVENUE SHARPLY DOWNWARD AND LEADING TO A COLLAPSE IN KENDALL'S STOCK PRICE KENDALL SQUARE SAID COOPERS AND LYBRAND WILL REPLACE PRICE WATERHOUSE IT SAID IT HAD CONSIDERED COMPETITIVE PROPOSALS FROM FOUR DIFFERENT AUDIT FIRMS INCLUDING PRICE BEFORE SELECTING COOPERS ZACHARY SHIPLEY NEWLY NAMED TREASURER OF KENDALL SQUARE A MAKER OF SUPERCOMPUTERS SAID THE CHANGE WAS BASED ENTIRELY ON COST AND DIDN'T HAVE ANYTHING TO DO WITH ACCOUNTING TREATMENT MR. SHIPLEY IS A LONGTIME AIDE OF WILLIAM KOCH KENDALL'S LARGEST INVESTOR WHO TOOK OVER AS CHIEF EXECUTIVE OFFICER LAST MONTH IN THE WAKE OF THE REVENUE RESTATEMENT IN NEW YORK A SPOKESWOMAN FOR PRICE SAID WE'RE DISAPPOINTED THEY MADE THAT DECISION A LOT OF COMPANIES THESE DAYS DO THAT IN AN EFFORT TO CUT COSTS KENDALL SQUARE A MAKER OF MASSIVELY PARALLEL SUPERCOMPUTERS MADE THE ANNOUNCEMENT LATE YESTERDAY IN OVER THE COUNTER TRADING KENDALL SQUARE CLOSED AT FIVE POINT THREE SEVEN FIVE DOLLARS OFF FIFTY CENTS OR EIGHT POINT FIVE PERCENT ON VOLUME OF EIGHTY SEVEN THOUSAND SIX HUNDRED SHARES QUOTE WE OUGHT TO HAVE CONFIDENCE IN OUR NATION'S ATTORNEY GENERAL CONFIDENCE THAT SHE JANET RENO CAN CONDUCT CRIMINAL INVESTIGATIONS WITH INDEPENDENCE AND WITHOUT THE INTRUSION OF POLITICS QUOTE SHE'S MS. RENO'S WASTED A LOT OF TIME DRAGGING HER FEET AND IT'S TIME SHE MOVED AND APPOINTED AN INDEPENDENT COUNSEL THE YEAR ISN'T EVEN A WEEK OLD AND BOB DOLE ALREADY IS A CANDIDATE FOR THE POLITICAL HYPOCRISY AWARD OF NINETEEN NINETY FOUR WHAT TRANSPIRED IN FORTY FIVE DAYS WAS THAT PRESIDENT CLINTON AND MS. CLINTON'S RELATIONSHIP WITH A FAILED SAVINGS AND LOAN IN THE NINETEEN EIGHTIES BEGAN TO DOMINATE THE HEADLINES BOB DOLE WHO BLOCKED EXTENDING THE INDEPENDENT COUNSEL LEGISLATION IN NINETEEN NINETY TWO WHEN A REPUBLICAN WAS IN THE WHITE HOUSE SMELLED BLOOD THE POLITICAL CONTEXT IS WASHINGTON RETURNING FROM THE HOLIDAYS READYING FOR A ROUGH YEAR WHILE A COUPLE POTENTIAL SCANDALS CIRCLE THE FIRST FAMILY SOME EARLY CONCLUSIONS FROM ALL THIS ARE THE CLINTON SEX SCANDAL IS DYING A WELL DESERVED DEATH BUT THE FINANCIAL ALLEGATIONS MAY HAVE LEGS THE PUBLIC TO THE SURPRISE OF CYNICS HAS MUCH LESS INTEREST THAN THE PRESS IN STORIES ABOUT BILL CLINTON'S ALLEGED INFIDELITIES AS GOVERNOR OF ARKANSAS THE STORY WAS SEAMY IF NOT SPECIOUS FROM THE START THE ESSENCE AS MOST EVERYONE KNOWS BY NOW INVOLVED SEVERAL FORMER ARKANSAS STATE TROOPERS REPRESENTED BY A CLINTON HATING REPUBLICAN POLITICO TELLING HOW THE FORMER ARKANSAS GOVERNOR USED THEM TO FACILITATE SEXUAL ASSIGNATIONS TITILLATION ASIDE IT SEEMS OBVIOUS THAT A THE STORIES ADDED LITTLE TO THE KNOWLEDGE VOTERS POSSESSED DURING THE NINETEEN NINETY TWO ELECTION THAT BILL CLINTON HAD A PHILANDERING PAST B. THE ALLEGATIONS AT THE CORE TRUE WERE PROBABLY EMBELLISHED TO MAKE A MORE MARKETABLE STORY AND C. THE MOST SERIOUS CHARGE THAT THE PRESIDENT MAY HAVE TRIED TO SILENCE ACCUSERS WITH JOB OFFERS WAS FLIMSY AT BEST BY CONTRAST THE S. AND L. FLAP WON'T FADE AS EASILY THE CENTRAL ISSUE IS DID THE NOW DEFUNCT MADISON GUARANTY SAVINGS AND LOAN ILLEGALLY FUNNEL POLITICAL AND PERSONAL FUNDS TO THE CLINTONS IN THE NINETEEN EIGHTIES THE HEAD OF MADISON JAMES MCDOUGAL AND THE CLINTONS WERE PARTNERS IN A SEPARATE LAND DEVELOPMENT COMPANY WHITEWATER DEVELOPMENT COMPANY WHICH ALSO MAY HAVE ILLICITLY GOTTEN MONEY FROM A SMALL BUSINESS INVESTMENT COMPANY RUN BY DAVID HALE WHOM GOVERNOR CLINTON APPOINTED A STATE JUDGE THE PLOT THICKENED FOLLOWING THE TRAGIC SUICIDE LAST JULY OF VINCE FOSTER A WHITE HOUSE COUNSEL AND THE CLINTONS' FORMER LAWYER WITHIN HOURS PRESIDENTIAL AIDES HASTILY SPIRITED WHITEWATER FILES OUT OF MR. FOSTER'S OFFICE THE CLINTONS THE FIRST LADY ONCE RECEIVED A TWO THOUSAND DOLLAR A MONTH RETAINER AS MADISON'S ATTORNEY DENY ANY IMPROPRIETIES AND SAY THEY ACTUALLY LOST ALMOST SIXTY NINE THOUSAND DOLLARS FROM THE WHITEWATER INVESTMENT YET A REPORT ASSERTING THIS BY A CLINTON FRIEND LAST YEAR IS FLAWED AND THERE ARE KEY RECORDS MISSING MEANWHILE MR. HALE UNDER INDICTMENT HIMSELF PRIVATELY IS TRYING TO CUT A DEAL CLAIMING THAT HE HAS SOME INCRIMINATING DOCUMENTS THIS IS EXACTLY THE SORT OF CASE FOR WHICH THE INDEPENDENT COUNSEL MEASURE WAS INTENDED WHEN INTERVIEWED WITH PROMISE OF CONFIDENTIALITY TWO TOP LAWYERS BOTH WITH CRIMINAL AND FINANCIAL EXPERTISE THOUGH NOT INVOLVED IN THIS CASE SEPARATELY ARRIVE AT THE SAME DEDUCTION THE CLINTONS MAY HAVE ENGAGED IN ETHICAL TRANSGRESSIONS BUT THE POSSIBILITY OF ANY CRIMINAL VIOLATION IS FAR FETCHED THE CLINTONS SHOULD HAVE AVOIDED ANY DEALS WITH MR. MCDOUGAL A WELL KNOWN HUSTLER IN ARKANSAS POLITICAL CIRCLES BUT THE FIRST FAMILY HAS NO HISTORY OF SEEKING BIG BUCKS OR CUTTING SHADY DEALS BUT THIS IS WHY A TRULY INDEPENDENT COUNSEL TO INVESTIGATE SERIOUS ALLEGATIONS BY VERY TOP EXECUTIVE BRANCH AND SOMETIMES CONGRESSIONAL FIGURES IS NECESSARY TO ESTABLISH INNOCENCE AS WELL AS GUILT THE APPEARANCE OF JUSTICE HAVING BEEN DONE IS EQUALLY AS IMPORTANT AS JUSTICE HAVING BEEN DONE SAYS SENATOR WILLIAM COHEN R. MAINE A CHAMPION OF INDEPENDENT COUNSEL LEGISLATION CONSERVATIVE CRITICS FORGET IT WAS THEIR HERO ED MEESE WHO REQUESTED AN INDEPENDENT COUNSEL BACK IN NINETEEN EIGHTY FOUR AND WAS CLEARED OF ANY CRIMINAL CONDUCT LEGISLATION EXTENDING THE LAW IS ESSENTIAL A MEASURE HAS PASSED THE SENATE AND THE HOUSE EXPECTS IT TO DO LIKEWISE BY EARLY FEBRUARY AN UNDENIABLE PROBLEM IS THAT THE STATUTE OF LIMITATIONS ON SOME OF THE MADISON ALLEGATIONS EXPIRES IN MARCH BUT EVEN THE CURRENT INVESTIGATION BEING CONDUCTED BY A HIGHLY RESPECTED CAREER OFFICIAL IS UNLIKELY TO WRAP UP IN TWO MONTHS WHAT SENATOR DOLE PROPOSES IS FOR ATTORNEY GENERAL RENO ON HER OWN TO APPOINT A SO CALLED INDEPENDENT COUNSEL THAT PERSON OF COURSE WOULD REPORT TO HER AND ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL WHOSE FATHER IN LAW GOT A HUGE LOAN FORGIVENESS FROM MADISON THAT'S LIKE SETTING UP A BLIND TRUST THAT YOU CAN PEEK AT IF A JUSTICE DEPARTMENT DESIGNATED COUNSEL ISSUES A REPORT EXONERATING THE CLINTONS ONE ALREADY CAN HEAR THE KANSAS REPUBLICAN QUESTIONING THE INDEPENDENCE OF THE CONCLUSION WITH DEMOCRATS RUNNING THE EXECUTIVE BRANCH FOR THE FIRST TIME IN A DOZEN YEARS REPUBLICAN VIEWS ON EXECUTIVE PRIVILEGES AND PERQUISITES ARE IN A METAMORPHIC FREE FALL REMEMBER THOSE DAYS WHEN REPUBLICANS PASSIONATELY PROTESTED AGAINST ANY ENCROACHMENT ON EXECUTIVE AUTHORITY THAT STARTED TO END ABOUT THREE HUNDRED FIFTY ONE DAYS AGO WHEN BILL CLINTON WAS SWORN IN A MAINSTAY IN THE OLD ARGUMENT WAS OPPOSITION TO COUNSELS TRULY INDEPENDENT OF THE EXECUTIVE BRANCH NOW CONSERVATIVES ARE CALLING FOR INDEPENDENT COUNSELS TO INVESTIGATE ALLEGATIONS NOT ONLY AGAINST THE CLINTONS BUT SEPARATELY AGAINST COMMERCE SECRETARY RON BROWN SIMILARLY ON FOREIGN POLICY REMEMBER THOSE IMPASSIONED CONSERVATIVES WHO PROTESTED AGAINST ANY EFFORTS TO TIE THE PRESIDENT'S HANDS ON NICARAGUA OR EL SALVADOR OR BEIRUT DURING THE NINETEEN EIGHTIES SUDDENLY FOR BOB DOLE AND OTHERS THE PRINCIPLES CHANGED THIS YEAR WHEN IT CAME TO SOMALIA AND A DEMOCRATIC PRESIDENT THESE REPUBLICANS DON'T EVEN COME UP WITH AN ARGUMENT FOR CHANGING THEIR POSITION NOTES REPRESENTATIVE BARNEY FRANK D. MASSACHUSETTS QUOTE THEY JUST FIGURE THE PUBLIC DOESN'T HAVE ANY MEMORY QUOTE IN A VARIATION ON THIS SEPARATION OF POWERS ISSUE HERE'S ONE MORE PREDICTION IF THE G. O. P. PICKS UP TWENTY OR TWENTY FIVE HOUSE SEATS THIS YEAR AND A HALF DOZEN SENATE SEATS PUTTING THEM WITHIN STRIKING DISTANCE OF CONGRESSIONAL CONTROL WATCH ALL THE CONSERVATIVE CLAMOR FOR TERM LIMITS FOLLOW THE SAME FATE AS WORRIES ABOUT ENCROACHING ON EXECUTIVE AUTHORITY WITH MEASURES LIKE INDEPENDENT COUNSELS THIS MEDIA COMPANY SAID JAAN TORV FORTY SIX YEARS OLD WAS NAMED SENIOR EXECUTIVE VICE PRESIDENT OF PROGRAMMING AND DEVELOPMENT FOR DELPHI INTERNET SERVICES THE RECENTLY ACQUIRED CONSUMER ON LINE SERVICE BASED IN CAMBRIDGE MASSACHUSETTS FOR THE LAST THREE YEARS MR. TORV WAS VICE PRESIDENT OF NEWS AMERICA NEW MEDIA RESPONSIBLE FOR DEVELOPING AND OPERATING ITS ELECTRONIC AND INTERACTIVE PRODUCTS GLENN W. ANDERSON WAS NAMED EXECUTIVE VICE PRESIDENT COMMERCIAL LINES OF THIS INSURANCE HOLDING COMPANY'S U. S. F. AND G. INSURANCE UNIT MR. ANDERSON FORTY ONE YEARS OLD PREVIOUSLY SENIOR VICE PRESIDENT COMMERCIAL LINES SUCCEEDS GARY C. DUNTON THIRTY EIGHT WHO WAS NAMED EXECUTIVE VICE PRESIDENT FIELD OPERATIONS AGNES J. BUNDY FORMER COUNSEL TO THE U. S. SENATE BUDGET COMMITTEE WAS NAMED SENIOR VICE PRESIDENT CORPORATE ADMINISTRATION MS. BUNDY THIRTY SIX YEARS OLD WILL BE IN CHARGE OF FLEET'S COMMUNITY REINVESTMENT ACT COMPLIANCE PROGRAM HER APPOINTMENT COMES IN THE WAKE OF CONTROVERSY OVER ALLEGATIONS OF UNFAIR LEADING PRACTICES AT FLEET NEW ENGLAND'S LARGEST BANK IN JUNE NINETEEN NINETY TWO RUSSIAN PRESIDENT BORIS YELTSIN AFTER A SOJOURN WITH GEORGE BUSH AT CAMP DAVID MET WITH CONGRESSIONAL LEADERS AT THE RUSSIAN EMBASSY AS HE WAS TALKING WITH DEMOCRATIC CONGRESSIONAL LEADERS THOMAS FOLEY AND GEORGE MITCHELL AND THEIR REPUBLICAN COUNTERPARTS BOB MICHEL AND BOB DOLE THE RUSSIAN LEADER NOTED ALMOST CASUALLY THAT QUOTE WE ARE ALL LOOKING FORWARD TO PRESIDENT BUSH'S RE ELECTION QUOTE NOT QUITE INTERRUPTED SPEAKER OF THE HOUSE FOLEY TELLING A SURPRISED BORIS YELTSIN THAT WHILE EVERYBODY LIKES GEORGE BUSH SOME NOT ONLY WEREN'T LOOKING FORWARD TO HIS RE ELECTION BUT DIDN'T THINK IT WOULD HAPPEN THE ANECDOTE IS OF LITTLE CONSEQUENCE EXCEPT TO SHOW HOW STUNNINGLY NAIVE MR. YELTSIN IS ABOUT AMERICAN POLITICS MORE SIGNIFICANT HOWEVER AS PRESIDENT CLINTON SITS DOWN FOR TALKS IN MOSCOW TODAY IS THAT IT JUST MAY BE THAT THE CLINTON ADMINISTRATION HAS BEEN SIMILARLY NAIVE ABOUT RUSSIAN POLITICS THE ADMINISTRATION CONSIDERS ITS RUSSIAN POLICY A SHINING SUCCESS IN A SEA OF FOREIGN POLICY PROBLEMS THE STRONG SHOWING OF NEO FASCISTS AND COMMUNISTS IN LAST MONTH'S PARLIAMENTARY ELECTIONS MAY HAVE SHOCKED THE CLINTONITES BUT IT DIDN'T CHANGE THEIR SELF CONGRATULATORY POSTURE THE CHIEF ARCHITECT OF THIS POLICY RUSSIA EXPERT AND FORMER TIME MAGAZINE EDITOR STROBE TALBOTT NEWLY DESIGNATED AS DEPUTY SECRETARY OF STATE HAS WON FAWNING REVIEWS FROM MOST OF HIS FORMER COLLEAGUES IN THE DIPLOMATIC PRESS CORPS YET THE ADMINISTRATION CLEARLY UNDERESTIMATED THE ECONOMIC DISASTER IN RUSSIA IT'S STILL UNSURE OF HOW TO SPEND MUCH OF THE THREE BILLION DOLLARS IT GOT CONGRESS TO APPROPRIATE FOR RUSSIAN AID LAST YEAR THE RUSSIANS SHAMEFULLY HAVE BEEN GIVEN A VETO OVER SOME SECURITY ARRANGEMENTS IN EASTERN EUROPE AND OUR POLICY RESTS ALMOST EXCLUSIVELY ON BORIS YELTSIN MOST OF THE ADMINISTRATION TALK ABOUT ECONOMIC PROGRESS THERE IS A MIRAGE IN A COUNTRY WITH NO MODERN HISTORY OF MARKETS IT'S NOT SURPRISING THAT WHEN YOU START ELIMINATING CENTRAL PLANNING WHAT YOU GET IS A BLACK NOT A FREE MARKET RUSSIA AS FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN NOTED IN A SPEECH EARLIER THIS YEAR LACKS THE RUDIMENTARY INSTITUTIONS MOST PROMINENTLY A LEGAL SYSTEM TO CONVERT TO A MARKET BASED SYSTEM MEANING THAT ANY TRANSITION IS LIKELY TO BE SIGNIFICANTLY STRETCHED OUT THE PHYSICAL INFRASTRUCTURE NOTES WELLESLEY COLLEGE RUSSIA EXPERT MARSHALL GOLDMAN IS DREADFUL MORE THAN SEVENTY PERCENT OF ALL RUSSIAN FACTORIES ARE MODELS OF INEFFICIENCY WITH WORK FORCES OF MORE THAN ONE THOUSAND EMPLOYEES THE PREDICTABLE RESULT IS RAMPANT INFLATION AND NEGATIVE GROWTH THE RUSSIANS THE LINE GOES ARE TERRIFIC AT CONVERTING STEEL INTO SCRAP ONE PROMINENT ECONOMIST AFTER SPENDING TIME IN RUSSIA CONCLUDED THERE'S ONE SOLUTION SEND ONE HUNDRED FIFTY MILLION PEOPLE AWAY FOR A FEW YEARS RAZE THE COUNTRY AND START FROM SCRATCH THIS MAKES THE DEBATE ABOUT ECONOMIC SHOCK THERAPY IN RUSSIA AFTER THE PARLIAMENTARY ELECTIONS MR. TALBOTT WAS SAID TO ADVOCATE MORE THERAPY AND LESS SHOCK A FALSE CHOICE THE ADVOCATES CITE POLAND AS A SUCCESS BUT POLAND HAS A HISTORY OF MARKETS MORE THAN THREE QUARTERS OF THE FARMS THERE NEVER WERE COLLECTIVIZED AND THERE WAS A SMALLER BUT NOT INSIGNIFICANT RETAIL MARKET THE THERAPY WITH LESS SHOCK PROPONENTS IGNORE THE EXAMPLE OF UKRAINE WHICH MAKES RUSSIA LOOK GOOD THUS THE INESCAPABLE CONCLUSION IS THAT ECONOMICALLY AS WELL AS POLITICALLY WHAT THE U. S. DOES WILL HAVE AT MOST A MARGINAL EFFECT WHICH RAISES QUESTIONS ABOUT WHY WE'RE POURING BILLIONS OF DOLLARS INTO THIS MESS MOST OF THE THREE BILLION DOLLARS APPROPRIATED IN NINETEEN NINETY THREE LIES IN LIMBO ONE PRELIMINARY PLAN CALLED FOR FIFTEEN PERCENT OF THE MONEY EARMARKED FOR MILITARY HOUSING RELOCATION TO BE SET ASIDE FOR LOCAL RUSSIAN HOUSING OFFICIALS CONGRESSIONAL EXPERTS POINTED OUT THAT THIS WOULD CONSTITUTE NOTHING MORE THAN A PAYOFF IN A TIGHT FISCAL CLIMATE AT HOME FEW AMERICANS WILL COTTON TO SPENDING MILLIONS OF THEIR TAX DOLLARS TO BRIBE CORRUPT RUSSIANS SIMILARLY THERE'S WIDESPREAD SPECULATION ABOUT HUGE RIPOFFS BY THE UBIQUITOUS CONSULTANTS THE SIMPLE FACT IS THAT RUSSIA IS AN ECONOMIC MIDGET ILL EQUIPPED TO RECEIVE LARGE AMOUNTS OF OUTSIDE AID TRADE IS A PRETTY DECENT MEASURE OF ECONOMIC STANDING AND THE U. S. HAS MORE COMMERCE WITH THIRTY EIGHT NATIONS RUSSIA RANKS BEHIND DENMARK AND SLIGHTLY AHEAD OF COSTA RICA WHILE STROBE TALBOTT PROCLAIMS RUSSIA AS OUR TOP FOREIGN POLICY PRIORITY BILL CLINTON SAYS ECONOMICS IS THE PRE EMINENT INTERNATIONAL ISSUE THERE'S A CONFLICT IT'S ALSO INCONGRUOUS THAT A COUNTRY SO ECONOMICALLY DECIMATED IS AN IMPERIALISTIC THREAT NOTWITHSTANDING ITS HISTORY FOR THE FORESEEABLE FUTURE RUSSIA MAY BE A NUISANCE SOMETIMES EVEN A DANGEROUS ONE TO ITS NEWLY INDEPENDENT IMMEDIATE NEIGHBORS BUT THE POSSIBLE RE EMERGENCE OF A SUPER POWER THREAT IS LUDICROUS SOMEDAY RUSSIA WITH CONSIDERABLE RESOURCES MAY BE AN IMPORTANT COUNTRY AGAIN BUT THAT HARDLY RESTS SOLELY ON BORIS YELTSIN'S SUCCESS AS THE ADMINISTRATION WOULD HAVE YOU BELIEVE THE RUSSIAN LEADER IS A BRAVE MAN HE THRIVES ON CRISES BUT HE SHOWS MUCH LESS TALENT FOR THE COALITION CRAFTING OR CONSTITUENCY BUILDING ESSENTIAL TO GOVERNANCE INDEED HE SEEMS MORE LIKE AMERICAN POLITICIANS WHO THRIVE ON RUNNING FOR OFFICE BUT ARE RESTLESS SERVING IT'S DICEY TO SO TOTALLY BASE POLICY ON THIS ONE MAN THERE STILL ARE IMPORTANT ISSUES THIS THIRD RATE COUNTRY HAS TWENTY FIVE THOUSAND NUCLEAR WEAPONS MR. TALBOTT AND TOP DEFENSE DEPARTMENT OFFICIALS DESERVE CREDIT FOR NEGOTIATING A NUCLEAR PACT WITH UKRAINE LET'S HOPE IT WILL STICK IT'S ESSENTIAL THAT FURTHER DISMANTLING AND DESTRUCTION OF NUCLEAR WEAPONS TAKE PLACE IN RUSSIA AND OTHER FORMER SOVIET STATES WE OUGHT TO GIVE WHATEVER MONEY IT TAKES TO FACILITATE THAT THE U.SS ALSO OUGHT TO REMOVE BARRIERS TO RUSSIAN EXPORTS AND HELP FUND AND LAUNCH NEW BUSINESSES AS OPPOSED TO TRYING TO PRIVATIZE BLOATED EXISTING STRUCTURES BUT WHEN PRESIDENT CLINTON AS HE DID THE OTHER DAY PREDICTS THAT RUSSIA IS ON THE WAY TO AGAIN BECOMING A VERY GREAT NATION IT'S A DELUSION IN THE SAME SESSION WITH COLUMNISTS THE PRESIDENT SUGGESTED THAT IT WOULD BE GOOD TO TAILOR THE ADMINISTRATION'S RUSSIAN POLICY TO A SLOGAN THAT WOULD FIT ON A BUMPER STICKER I THINK OUR SLOGAN WOULD BE THERE NEEDS TO BE MORE REFORM AND MORE SOCIAL SERVICE SUPPORT MORE ATTEMPTS TO BUILD A SAFETY NET TO DEAL WITH THE CONSEQUENCES OF REFORM BUT NOT AN ATTEMPT TO SLOW DOWN THE REFORM EFFORT THEN IF YOU SAID THERAPY THEN YOU'D HAVE ALL KINDS OF OTHER AMBIGUOUS THINGS YOU COULD GET IN THERE QUOTE THE PRESIDENT MAY NEED NOT ONLY A BETTER SLOGAN BUT A MORE REALISTIC POLICY AER LINGUS UNVEILED THE FIRST DUBLIN NEW YORK NONSTOP FLIGHTS AND A SWITCH FROM BOEING COMPANY AIRCRAFT TO AIRBUS INDUSTRIE PLANES AS PART OF ITS NEW NORTH ATLANTIC STRATEGY IRELAND'S STATE OWNED AIRLINE SAID IT WOULD LEASE THREE AIRBUS A. THREE THIRTY PLANES FOR ITS NEW TRANS ATLANTIC SERVICES THE NEW THREE HUNDRED THIRTY ONE SEAT AIRBUSES TO BE LEASED FROM AMERICAN INTERNATIONAL GROUP INCORPORATED'S INTERNATIONAL LEASE FINANCE CORPORATION WILL REPLACE AER LINGUS'S THREE AGING BOEING SEVEN FORTY SEVENS WHICH SEAT UP TO FOUR HUNDRED TWENTY FIVE PASSENGERS THE AIRLINE POSTED A LOSS OF ONE HUNDRED EIGHTY EIGHT MILLION IRISH PUNTS TWO HUNDRED SIXTY NINE POINT TWO MILLION DOLLARS IN THE MOST RECENT FULL FISCAL YEAR WHICH ENDED MARCH THIRTY FIRST NINETEEN NINETY THREE ANALYSTS BLAMED THE AIRLINE'S PROBLEMS ON POOR COST CONTROLS AND AN EXPENSIVE STOP REQUIRED BY THE IRISH GOVERNMENT IN THE WESTERN IRISH CITY OF SHANNON FOR ALL TRANS ATLANTIC FLIGHTS HOUSEWARES RETAILER LECHTERS INCORPORATED NAMED STEEN KANTER PRESIDENT OF EAST COAST OPERATIONS FOR SWEDISH HOME FURNISHING RETAILER IKEA A. B. TO BE VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER LECHTERS WHICH OPERATES FIVE HUNDRED SEVENTY TWO STORES IN FORTY TWO STATES ALSO PROMOTED MICHAEL A. ANTHONY TO PRESIDENT AND CHIEF OPERATING OFFICER AS CHIEF EXECUTIVE MR. KANTER FORTY SEVEN YEARS OLD SUCCEEDS LECHTERS CO FOUNDER DONALD JONAS SIXTY FOUR WHO REMAINS CHAIRMAN THE VICE CHAIRMAN POSITION HAD BEEN VACANT SINCE NOVEMBER WHEN CO FOUNDER ALBERT LECHTER SIXTY FOUR RESIGNED MR. LECHTER REMAINS A CONSULTANT AND DIRECTOR MR. KANTER WAS A TWENTY TWO YEAR VETERAN OF IKEA A SPOKESWOMAN FOR IKEA SAID THE COMPANY HASN'T NAMED A SUCCESSOR MR. ANTHONY THIRTY EIGHT HAD BEEN AN EXECUTIVE VICE PRESIDENT THE PRESIDENT AND CHIEF OPERATING OFFICER POSITIONS WERE LEFT VACANT BY MR. LECHTER IN NINETEEN NINETY TWO WHEN HE BECAME VICE CHAIRMAN DALE L. WARTLUFT FIFTY TWO YEARS OLD WAS NAMED MANAGING DIRECTOR OF THIS ACCOUNTING TAX AND CONSULTING FIRM'S GREAT LAKES MANAGEMENT CONSULTING GROUP BASED IN CHICAGO HE SUCCEEDS JAMES S. DISTASIO FORTY SIX WHO WAS NAMED MANAGING PARTNER OF ERNST AND YOUNG'S NEW ENGLAND AREA OFFICES BASED IN BOSTON MR. WARTLUFT MOST RECENTLY WAS THE COMPANY'S NATIONAL DIRECTOR FOR SYSTEMS PLANNING AND DELIVERY DID TACO BELL USE A SPY TO MONITOR A PESKY FRANCHISEE THIS WEEK A FEDERAL JUDGE DECIDED TO LET A DISGRUNTLED FRANCHISEE PURSUE AN UNUSUAL ALLEGATION IN HIS LAWSUIT AGAINST THE IRVINE CALIFORNIA UNIT OF PEPSICO INCORPORATED THE SUIT CHARGED THAT TACO BELL HAD PLANTED A SPY WHO SECRETLY USED A HIDDEN MICROPHONE TO TAPE THE FRANCHISEE'S CONVERSATIONS TACO BELL HAS YET TO ANSWER THE SUBSTANCE OF THE SPYING CHARGES IN COURT THOUGH IT UNSUCCESSFULLY TRIED TO DISMISS THEM ON TECHNICAL GROUNDS FRANCHISEE RICHARD L. COHN WHO RUNS NINE TACO BELL UNITS IN THE CHICAGO SUBURBS BROUGHT SUIT IN CHICAGO IN NINETEEN NINETY TWO AND ADDED THE SPYING ALLEGATION LAST AUGUST IN THE SUIT MR. COHN ALSO MAINTAINED THAT TACO BELL BROKE PROMISES TO LET HIM OPEN TWO MORE RESTAURANTS THE SUIT CHARGED THAT THE FRANCHISER DECIDED QUOTE TO DRIVE MR. COHN OUT OF THE TACO BELL SYSTEM QUOTE ABOUT THREE YEARS AGO THE SUIT ALLEGED THAT TACO BELL OFFICIALS THOUGHT MR. COHN ASKED TOO MANY QUESTIONS ABOUT ITS PRICING AND SUPPLIERS AND WANTED TO FORM A DISSIDENT GROUP OF TACO BELL FRANCHISEES SUCH A GROUP EVENTUALLY FORMED AND MR. COHN JOINED PAUL K. VICKREY AN ATTORNEY FOR MR. COHN SAYS HE AIMS TO SHOW THAT TACO BELL UNDERMINED ITS FRANCHISEE PARTLY BY USING THE ALLEGED SPY DIRK SMITH AT TACO BELL'S SUGGESTION MR. COHN HIRED MR. SMITH THEN A TACO BELL MARKET MANAGER IN HOUSTON TO OVERSEE HIS OPERATIONS ACCORDING TO THE SUIT DURING HIS SIX MONTH TENURE IN NINETEEN NINETY ONE MR. SMITH ALLEGEDLY SPIED ON HIS BOSS AND REPORTED HIS FINDINGS TO TACO BELL OFFICIALS THE SUIT CLAIMED ABSOLUTELY LUDICROUS I NEVER DID ANY SPYING FOR TACO BELL WHATSOEVER RETORTS MR. SMITH NOW VICE PRESIDENT OF SIZZLIN' QUICK HAMBURGERS INCORPORATED AN AUSTIN TEXAS FRANCHISER MR. SMITH SAYS HE DID RECORD CONVERSATIONS WITHOUT MR. COHN'S KNOWLEDGE IN ORDER TO PREPARE A POSSIBLE LAWSUIT AGAINST MR. COHN'S COMPANY R. L. C. ENTERPRISES INCORPORATED MR. SMITH NEVER SUED IN THIS WEEK'S RULING MR. COHN WAS REBUFFED ON AN ENCROACHMENT CHARGE THAT HAD SPARKED HIS LAWSUIT HOWEVER HE MAINTAINED THAT TACO BELL HAD VIOLATED A CONTRACT BY PLANNING A FRANCHISER OWNED RESTAURANT IN VERNON HILLS WITHIN TWO MILES OF MR. COHN'S MOST PROFITABLE UNIT IN MUNDELEIN ILLINOIS ACCORDING TO THE COHN SUIT TACO BELL IGNORED A SO CALLED IMPACT STUDY PREDICTING THAT THE PLANNED UNIT WOULD CANNIBALIZE BETWEEN TWENTY SEVEN PERCENT AND FORTY PERCENT OF THE EXISTING UNIT'S SALES JUDGE JOHN A. NORDBERG DISMISSED THAT CHARGE RULING THAT TACO BELL'S AGREEMENTS WITH FRANCHISEES PERMIT ENCROACHMENT WITH ENCROACHMENT CASES ON THE RISE THE JUDGE'S RULING WILL INTEREST MANY FRANCHISERS WORRIED ABOUT HOW TO WORD CONTRACTS STANLEY J. ADELMAN A TACO BELL ATTORNEY DECLINED TO DISCUSS THE COHN CASE TACO BELL OFFICIALS DIDN'T RETURN PHONE CALLS SEEKING COMMENT STATE WATCHDOGS ON FRANCHISING WILL GET TO KEEP THEIR JOBS AFTER ALL AN ARCANE ISSUE CALLED PRE EMPTION HAS FINALLY DIED AT THE FEDERAL TRADE COMMISSION STATE FRANCHISE REGULATORS LONG FRANCHISEES' GREATEST SOURCE OF PROTECTION WILL KEEP THEIR POWER AT LEAST FOR NOW LAST MONTH THE F. T. C. ENDED A FOUR YEAR LOOK AT WHETHER THE FEDERAL GOVERNMENT SHOULD PRE EMPT STATE RULES GOVERNING FRANCHISERS' DISCLOSURES TO PROSPECTIVE FRANCHISEES THE F. T. C. PRESENTLY OVERSEES FEDERAL DISCLOSURE RULES FOR FRANCHISERS BUT STATES MAY SET THEIR OWN TOUGHER STANDARDS AND SOME DO SO IF FEDERAL RULES WERE PRE EMPTIVE THEY ALONE WOULD APPLY THAT PROSPECT ALARMS SOME FRANCHISEE ADVOCATES AS THE LAWS EXIST NOW FRANCHISEES DO BETTER UNDER THE STATE LAWS SO FEDERAL PRE EMPTION WOULD NOT MAKE SENSE SAYS MARIO L. HERMAN A WASHINGTON D. C. LAWYER FOR FRANCHISEES NEARLY FIVE YEARS AGO TERRY CALVANI THEN AN F. T. C. COMMISSIONER STUNNED STATE REGULATORS BY DECLARING THAT THE F. T. C. MIGHT PRE EMPT THEIR ROLE MR. CALVANI NOW A PRIVATE ATTORNEY IN WASHINGTON SAYS HE HAD HOPED TO END A CRAZY QUILT OF REGULATIONS THAT COSTS FRANCHISERS PLENTY AND MAKES IT MUCH HARDER FOR NEWCOMERS TO ENTER THE MARKET THE F. T. C. INITIATED ITS PROCEEDING IN NINETEEN EIGHTY NINE LAST MONTH AGENCY OFFICIALS SAID THEY COULDN'T JUSTIFY PRE EMPTION BECAUSE THEY DIDN'T SEE SUFFICIENT EVIDENCE OF COSTLY CONFLICTS OR INCONSISTENCIES AMONG VARIOUS STATES' RULES POLITICS ALSO PLAYED A ROLE WHILE INITIALLY VOWING TO WORK HARD FOR PRE EMPTION THE INTERNATIONAL FRANCHISE ASSOCIATION LATER TOOK A LUKEWARM STANCE INDIVIDUALS CLOSE TO THE FRANCHISER GROUP SAY IT FEARED ALIENATING STATE REGULATORS THE I. F. A.'S SPOKESMAN ON THIS ISSUE COULDN'T BE REACHED BUT LAST YEAR THE I. F. A. RENEWED ITS SUPPORT FOR PRE EMPTION IN A LETTER TO REPRESENTATIVE JOHN J. LAFALCE D. N. Y. THE LEADING ADVOCATE OF TOUGHER FRANCHISING LAWS MR. LAFALCE HAS INDICATED HE MIGHT CHANGE HIS OPPOSITION TO PRE EMPTION IF FRANCHISERS SUPPORTED HIS PROPOSED CURBS ON THEM NOW IF THERE EVER IS TO BE PRE EMPTION IT WILL BE THE RESULT OF NEW FEDERAL LEGISLATION SAYS NEIL A. SIMON A WASHINGTON LAWYER WELFARE RECIPIENTS MAY SOON BECOME WORLDWIDE REFINISHING FRANCHISEES WORLDWIDE REFINISHING SERVICES INCORPORATED A UNIT OF ENTREPRENEUR DON DWYER'S DWYER GROUP IN WACO TEXAS SAYS IT HAS OFFERED TO WAIVE FRANCHISEES' TWENTY FOUR THOUSAND TWO HUNDRED DOLLARS ENTRY COSTS FOR CERTAIN RESIDENTS TRYING TO WORK THEIR WAY OUT OF PUBLIC HOUSING PROJECTS THE COMPANY SAYS IT HAS ALREADY LINED UP FIVE SUCH FRANCHISEES IN NEW YORK CITY AND PLANS TO TRAIN THEM NEXT MONTH IF THE CITY LETS THEM THE NEW FRANCHISEES INITIALLY WOULD SELL THEIR SERVICES MOSTLY REFINISHING BATHTUBS TO HOUSING PROJECTS WHERE THEY NOW LIVE ONCE THEY DEVELOPED OUTSIDE CUSTOMERS THE FRANCHISEES COULD MOVE OUT AND MAKE ROOM FOR THEIR REPLACEMENTS IN THE PROJECTS QUOTE IF SOMEONE WANTS TO BE OFF THE WELFARE ROLLS AND IS WILLING TO WORK HARD THIS IS A VEHICLE FOR THEM TO USE QUOTE SAYS CHARLES H. WALLIS EXECUTIVE VICE PRESIDENT OF WORLDWIDE THE PLAN IS PART OF NEW YORK'S BROADER EFFORT TO ENCOURAGE PUBLIC HOUSING RESIDENTS TO START SMALL BUSINESSES SAYS MARCIA MELENDEZ A BUSINESS DEVELOPMENT OFFICIAL FOR THE CITY'S HOUSING AUTHORITY SHE SAYS THE WORLDWIDE PLAN SHOULD WIN FINAL APPROVAL SOON WORLDWIDE SAYS IT AIMS TO MAKE SIMILAR ARRANGEMENTS THIS YEAR IN WASHINGTON BOSTON AND OTHER MAJOR CITIES BRIEFS THE INTERNATIONAL FRANCHISE ASSOCIATION REFLECTING U. S. FRANCHISERS' RISING INTEREST IN FOREIGN MARKETS SAYS IT WILL SPONSOR ELEVEN INTERNATIONAL CONFERENCES THIS YEAR UP FROM EIGHT IN NINETEEN NINETY THREE FRANCHISING LAWYERS SAY NEW LEGISLATIVE BATTLES OVER FRANCHISEE RIGHTS LOOM THIS YEAR IN CALIFORNIA CONNECTICUT FLORIDA MAINE AND MARYLAND MORGAN STANLEY GROUP INCORPORATED SAID IT PLANS AN OFFERING OF WARRANTS TIED TO THE VALUE OF THE MARK RELATIVE TO THE U. S. DOLLAR THE OFFERING INCLUDES FIVE MILLION MARK PUT WARRANTS AND TWO POINT FIVE MILLION CALL WARRANTS THE VALUE OF THE PUT WARRANTS WILL BE BASED ON DECREASES IN THE VALUE OF THE MARK RELATIVE TO THE U. S. DOLLAR AND THE VALUE OF THE CALL WARRANTS WILL BE BASED ON INCREASES IN THE VALUE OF THE MARK RELATIVE TO THE DOLLAR THE INVESTMENT BANKING COMPANY SAID MORGAN STANLEY HAS APPLIED TO LIST THE WARRANTS ON THE AMERICAN STOCK EXCHANGE WHICH ALREADY LISTS SEVERAL SIMILAR ISSUES DANIEL SCOTTO A TOP RANKED UTILITIES FIXED INCOME ANALYST LEFT DONALDSON LUFKIN AND JENRETTE INCORPORATED TO TAKE A SIMILAR POSITION AT BEAR STEARNS AND COMPANY MR. SCOTTO WHO ALSO HEADED D. L. J.'S HIGH YIELD AND INVESTMENT GRADE FIXED INCOME GROUPS JOINS BEAR STEARNS AS A SENIOR MANAGING DIRECTOR AND HEAD OF THE FIRM'S HIGH GRADE RESEARCH DEPARTMENT A NEW POSITION AT D. L. J. MR. SCOTTO HEADED THE INVESTMENT GRADE AND HIGH YIELD FIXED INCOME GROUPS BEAR STEARNS IS A UNIT OF BEAR STEARNS COMPANIES D. L. J. IS A UNIT OF EQUITABLE COMPANIES WHILE FIXED INCOME ANALYSTS RARELY ENJOY THE SPOTLIGHT GIVEN TO THEIR EQUITY SIDE COLLEAGUES MR. SCOTTO HAS BUILT A HIGH PROFILE IN THE ELECTRIC UTILITIES INDUSTRY THROUGH FREQUENT PUBLICATION OF HIS WORK AND BLUNT COMMENTARY HE HAS BEEN BEARISH ABOUT THE INDUSTRY'S OUTLOOK IN VIEW OF THE QUICKENING DEREGULATION OF ELECTRIC UTILITIES INSTITUTIONAL INVESTOR MAGAZINE RATED HIM THE TOP FIXED INCOME ELECTRIC UTILITIES ANALYST IN AUGUST NINETEEN NINETY THREE AN INTERNAL MEMORANDUM AT D. L. J. CALLED MR. SCOTTO'S SKILLS QUOTE LEGENDARY QUOTE ADDING THAT HE RESIGNED BECAUSE OF PENDING ORGANIZATIONAL CHANGES THE COMPANY DECLINED TO COMMENT FURTHER D. L. J. NAMED TERRAN A. MILLER FORMERLY OF MERRILL LYNCH AND COMPANY TO SUCCEED MR. SCOTTO MR. SCOTTO COULDN'T BE REACHED TO COMMENT JOHN L. SPRAGUE WAS NAMED A DIRECTOR OF CALIFORNIA MICRO DEVICES CORPORATION A MAKER OF THIN FILM SILICON BASED INTEGRATED CIRCUITS HE RETIRED IN NINETEEN EIGHTY SEVEN AS CHIEF EXECUTIVE OFFICER OF A COMPANY HIS FATHER FOUNDED SPRAGUE ELECTRIC COMPANY PRIMARILY A MAKER OF CAPACITORS IN TUESDAY'S WHO'S NEWS COLUMN CALIFORNIA MICRO WAS MISIDENTIFIED AS A SEMICONDUCTOR CONCERN AND MR. SPRAGUE AS SPRAGUE ELECTRIC'S FOUNDER THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS TWO AND FIFTEEN SIXTEENTHS PERCENT HIGH TWO AND SEVEN EIGHTHS PERCENT LOW TWO AND SEVEN EIGHTHS PERCENT NEAR CLOSING BID TWO AND FIFTEEN SIXTEENTHS PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH SIX PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH NINE PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT ONE OH PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE THREE PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT ONE FIVE PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO THREE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED SIXTY FOUR DAYS THREE POINT THREE OH PERCENT TWO HUNDRED SIXTY FIVE TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE ONE PERCENT THIRTY DAYS THREE POINT ONE THREE PERCENT SIXTY DAYS THREE POINT ONE SEVEN PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE FOUR PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT FIVE NINE PERCENT THREE MONTHS TWO POINT SEVEN OH PERCENT SIX MONTHS TWO POINT NINE TWO PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT OH ONE PERCENT ONE MONTH THREE POINT OH NINE PERCENT THREE MONTHS THREE POINT TWO TWO PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH TWO PERCENT THIRTY DAYS THREE POINT OH THREE PERCENT SIXTY DAYS THREE POINT OH FIVE PERCENT NINETY DAYS THREE POINT OH EIGHT PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE THREE PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE SEVEN PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FOUR MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FIVE MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND THREE EIGHTHS PERCENT SIX MONTHS THREE AND ELEVEN SIXTEENTHS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT EIGHT PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY TENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT OH TWO PERCENT THIRTEEN WEEKS THREE POINT ONE EIGHT PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT OH PERCENT SIXTY DAYS SIX POINT EIGHT EIGHT PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT SEVEN SIX PERCENT SIXTY DAYS SIX POINT EIGHT SIX PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN FOUR PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS SO IT'S AGREED THE NATION'S WELFARE SYSTEM IS A MORAL AND FISCAL DISASTER A CONSENSUS SEEMS TO HAVE FORMED THAT WELFARE DEPENDENCY MUST BE CURBED SUBSIDIES FOR ILLEGITIMACY QUESTIONED AND OPPORTUNITIES FOR WORK EXPANDED BUT INSTEAD OF CONSTRUCTIVELY USING THE FORCE FROM THIS RARE ALIGNMENT OF THE POLITICAL PLANETS THE CLINTON ADMINISTRATION IS DELAYING ACTION ON WELFARE REFORM MAKING IT UNLIKELY IT WILL PASS CONGRESS THIS YEAR INSTEAD IT WILL SINGLE MINDEDLY PURSUE ITS GRANDIOSE OVERHAUL OF HEALTH CARE ON WHICH THERE IS CLEARLY NO CONSENSUS ON WHAT TO DO EVERY ADMINISTRATION REACHES FORKS IN THE PUBLIC POLICY ROAD WHERE THE DIRECTION IT TAKES SPEAKS VOLUMES ABOUT ITS PRIORITIES THIS IS ONE OF THEM ON MONDAY PRESIDENT CLINTON TOLD HIS CABINET THAT HEALTH CARE WAS SO COMPLEX HE WOULDN'T HAVE TIME TO ATTEND TO WELFARE REFORM UNTIL THE NATION'S HEALTH CARE CONCERNS ARE CURED THE PRESIDENT LASHED OUT AT HIS CRITICS ARGUING THAT REPUBLICANS HADN'T WANTED TO CHANGE WELFARE UNTIL HE TOOK OFFICE THAT'S A STRETCH IT WOULD BE NEWS TO THE REAGAN ADMINISTRATION WHICH WORKED WITH SENATOR DANIEL PATRICK MOYNIHAN IN NINETEEN EIGHTY EIGHT TO PASS THE FIRST MAJOR BILL TO MOVE WELFARE RECIPIENTS INTO THE WORK FORCE G. O. P. GOVERNORS TOMMY THOMPSON OF WISCONSIN AND JOHN ENGLER OF MICHIGAN HAVE SIGNED LEGISLATION PHASING OUT SOME WELFARE PROGRAMS THE PRESIDENT IS TRYING TO AVOID A PAINFUL TRUTH PUSHING RADICAL WELFARE REFORM WOULD ALIENATE HIS PARTY'S MULTIPLE LIBERALS WHITE HOUSE OFFICIALS ADMIT THEY'RE CONCERNED ABOUT RECENT STATEMENTS BY LIBERAL HOUSE MEMBERS THAT THEY MIGHT NOT BACK A HEALTH CARE COMPROMISE IF HE CHALLENGED THEIR SACRED WELFARE COWS WELFARE REFORM WOULD ALSO ALIENATE THE UNIONS STILL ANGRY AT THE PRESIDENT FOR WHIPPING THEM ON NAFTA THE ONLY UNIONS THAT ARE GROWING TODAY ARE THOSE FOR GOVERNMENT WORKERS AND THEY FEAR ANY PUBLIC SECTOR WORKFARE PROGRAM COULD MEAN FEWER JOBS FOR THEIR MEMBERS THE POLITICS OF THE OPPOSITION TO WELFARE REFORM RAISES AN INTERESTING ISSUE FOR THE PEOPLE ACTUALLY TRAPPED IN WELFARE TO THINK ABOUT THE FACTIONS STANDING IN THE WAY OF RESTORING THEIR DIGNITY ARE MAINLY TRADITIONAL WHITE LIBERALS AND UNIONS BOTH BULWARKS OF THE MODERN DEMOCRATIC PARTY THEY'RE NOT THE ONES SITTING FOR HOURS AT THE HUMILIATION FACTORIES CALLED WELFARE OFFICES BUT THEY SEEM TO FEEL THEY OWN WHAT FORMER SOCIAL WORKER BOB WOODSON CALLS THE QUOTE POVERTY PENTAGON QUOTE AND THE PEOPLE DEPENDENT ON IT THE PEOPLE WANTING TO DO SOMETHING ARE OFTEN THOSE WHO KNOW IT ALL TOO WELL GOING ON WELFARE CLOSED A DOOR BETWEEN MY PARENTS THAT NEVER REOPENED SAYS FORMER WELFARE RECIPIENT ROSEMARY BRAY DADDY BECAME ONE OF THE SHADOW MEN WHO WALKED OUT BACK DOORS AS CASEWORKERS CAME IN THROUGH THE FRONT INDEED A GREAT MANY BLACK AMERICANS SUPPORT RADICAL STEPS TO RESTORE THE COUNTRY'S WORK ETHIC A NINETEEN NINETY TWO SURVEY OF BLACKS IN TEN SOUTHERN STATES BY THE ATLANTA CONSTITUTION ASKED DO YOU BELIEVE THAT EVERYONE WHO GETS WELFARE SHOULD BE REQUIRED TO WORK INCLUDING WOMEN WITH YOUNG CHILDREN AN ASTONISHING EIGHTY ONE PERCENT OF BLACK AMERICANS AGREED NATIONWIDE A FABRIZIO SLASH MCLAUGHLIN POLL LAST AUGUST FOUND NINETY ONE PERCENT OF BLACKS WANTED ABLE BODIED WELFARE RECIPIENTS TO WORK FOR BENEFITS POPULAR DEMAND FOR A RADICAL OVERHAUL OF WELFARE IS SO GREAT THAT A POLITICALLY ACUTE LIBERAL SUCH AS NEW YORK GOVERNOR MARIO CUOMO HAS PUT THE ISSUE FRONT AND CENTER YESTERDAY IN HIS ANNUAL STATE OF THE STATE ADDRESS HE CALLED FOR REDUCING FRAUD BY FINGERPRINTING WELFARE RECIPIENTS AND REQUIRING THAT TEENAGE WELFARE RECIPIENTS EARN THEIR ASSISTANCE THROUGH SCHOOL ATTENDANCE OR PART TIME WORK LAST NOVEMBER LIBERAL DEMOCRATS IN WISCONSIN HELPED PASS A BILL THAT WILL END ALL WELFARE BY NINETEEN NINETY EIGHT AND WILL DEVISE A WHOLE NEW SYSTEM BY NEXT YEAR BILL CLINTON WAS ELECTED IN NINETEEN NINETY TWO IN PART BECAUSE HIS PLEDGE TO END WELFARE AS WE KNOW IT CONVINCED MANY VOTERS THAT HE WAS A NEW DEMOCRAT LAST MONTH HE SAID CHARLES MURRAY'S ANALYSIS OF THE PERVERSE EFFECTS OF WELFARE WAS ESSENTIALLY RIGHT SOUNDS GOOD BUT IT'S JUST IMPRESSIVE BLATHER AS TO ACTION HE HAS DECIDED TO STAND WELFARE REFORM IN A CORNER WHILE HE ATTEMPTS A QUIXOTIC FEDERAL TAKEOVER OF THE ONE SEVENTH OF THE NATION'S G. N. P. NOW SPENT ON HEALTH CARE IT'S AN INSTRUCTIVE DECISION PEOPLE WITH LESS HUBRIS WOULD HAVE TAKEN ON A MORE DOABLE PIECE OF THE HEALTH CARE ISSUE SAY ENSURING PORTABILITY OF INSURANCE THAT WOULD HAVE LEFT POLITICAL CAPITAL TO DO WELFARE TOO INSTEAD WE GET HILLARY CLINTON'S PIPEDREAM MEANWHILE WE HAVE A WELFARE SYSTEM IN WHICH PEOPLE ARE TRULY SUFFERING PHYSICALLY EMOTIONALLY AND MORALLY AND OBVIOUSLY HAVE BEEN FOR A LONG TIME LARGE PARTS OF OUR GREATEST CITIES ARE A DAILY DISGRACE TO THE COUNTRY'S IDEA OF ITSELF FOR WHATEVER REASON BILL CLINTON IS NOW WANDERING DOWN THE WRONG FORK IN THE ROAD INVESTORS IN WRAP ACCOUNTS COULD BE GETTING MORE INFORMATION SOON THAT WILL HELP THEM DECIDE WHETHER THEIR MONEY AND THEIR TRUST ARE IN THE RIGHT PLACE AT THE OUTSET OF WHAT PROMISES TO BE A BROAD EFFORT TO INCREASE SCRUTINY OF WRAP ACCOUNTS THE SECURITIES AND EXCHANGE COMMISSION PROPOSED THE FIRST SPECIFIC DISCLOSURE RULES IN THIS AREA THESE ACCOUNTS ARE INVESTMENT PROGRAMS SPONSORED BY BROKER DEALERS WHO QUOTE WRAP QUOTE TOGETHER ASSET MANAGEMENT FINANCIAL PLANNING AND BROKERAGE SERVICES FOR ONE ANNUAL FEE TYPICALLY THREE PERCENT OF ASSETS THE AGENCY WANTS WRAP ACCOUNT SPONSORS TO PROVIDE DESCRIPTIVE BROCHURES TO ACCOUNT HOLDERS SEPARATE FROM THE CURRENTLY MANDATED DOCUMENTS THAT COVER ALL PRODUCTS OFFERED BY INVESTMENT ADVISERS WE HAVE FOUND THAT CURRENT DISCLOSURE ABOUT WRAP FEE PROGRAMS IN GENERAL IS NOT AS CLEAR OR CONCISE AS IT SHOULD BE SAID S. E. C. CHAIRMAN ARTHUR LEVITT BUT BROCHURES ARE JUST THE BEGINNING THIS IS THE FIRST OF THREE STEPS IN OUR ATTEMPT TO COME TO GRIPS WITH WRAP ACCOUNTS SAID BARRY BARBASH DIRECTOR OF THE S. E. C.'S DIVISION OF INVESTMENT MANAGEMENT ONE OF THE S. E. C.'S GOALS IS TO LEARN EXACTLY HOW MANY INVESTORS AND HOW MUCH MONEY ARE IN WRAP ACCOUNTS THE AGENCY HASN'T COLLECTED THAT DATA SINCE WRAP PROGRAMS WERE INTRODUCED IN THE EARLY NINETEEN EIGHTIES AND ESTIMATES OF TOTAL DOLLARS INVESTED VARY WILDLY MR. BARBASH SUGGESTED FIFTY BILLION DOLLARS OR HIGHER S. E. C. COMMISSIONER CARTER BEESE QUOTED FIGURES OF FORTY BILLION DOLLARS AND NINETY BILLION DOLLARS FROM TWO DIFFERENT NEWS ARTICLES BY A SINGLE REPORTER SIMILARLY THE S. E. C. IS A LITTLE HAZY ABOUT WHAT PROBLEMS INVESTORS MAY BE HAVING WITH WRAP ACCOUNTS THESE INVESTMENT PROGRAMS TEND TO HAVE SYSTEMS FOR DEALING WITH COMPLAINTS SO DISGRUNTLED INVESTORS ARE LESS LIKELY TO CALL THE S. E. C. SAID ROBERT PLAZE ASSISTANT DIRECTOR OF THE S. E. C.'S INVESTMENT MANAGEMENT DIVISION AND BECAUSE WRAP ACCOUNTS REQUIRE LARGE INVESTMENTS FROM THE OUTSET SOMETIMES STARTING AT ONE HUNDRED THOUSAND DOLLARS ACCOUNT SPONSORS RESPOND TO COMPLAINTS QUICKLY THESE THINGS ARE LIKE VALET SERVICES MR. PLAZE SAID NEVERTHELESS S. E. C. CHAIRMAN LEVITT SAID THE AGENCY HAS A NUMBER OF RESERVATIONS ABOUT CERTAIN ASPECTS OF THESE PROGRAMS QUOTE WE ARE CONCERNED THAT THESE PROGRAMS MAY IMPOSE EXCESSIVE COSTS ON CUSTOMERS WHO MAY NOT REALIZE EXACTLY WHAT SERVICE THEIR FEES ARE BUYING QUOTE MR. LEVITT SAID AT A COMMISSION MEETING YESTERDAY AND THE RELATIONSHIP BETWEEN THE PROGRAM SPONSOR AND THE VARIOUS SERVICE PROVIDERS THAT IT ENGAGES MAY NOT BE ENTIRELY CLEAR TO CUSTOMERS WE WILL BE EXAMINING THESE QUESTIONS FURTHER THE S. E. C.'S FIRST STEP IS THE PROPOSED REQUIREMENT OF A SEPARATE BROCHURE FROM WRAP ACCOUNT SPONSORS LAYING OUT THE COST OF THE PROGRAM THE SERVICES PROVIDED CONFLICTS OF INTEREST THAT THE SPONSOR MAY HAVE AND OTHER RELEVANT INFORMATION WRAP ACCOUNTS WOULD HAVE TO DISCLOSE WHAT PERCENTAGE OF THE ANNUAL FEE IS PAID TO THE WRAP MANAGER BUT WOULDN'T HAVE TO DISCLOSE WHAT PERCENTAGE OF THAT FEE IS PAID TO THE BROKER WRAP ACCOUNT PROVIDERS WOULDN'T BE REQUIRED TO DISCLOSE PERFORMANCE OF MONEY MANAGERS IF THEY DID CHOOSE TO REPORT PERFORMANCE THEY WOULDN'T BE REQUIRED TO REPORT PERFORMANCE IN A UNIFORM WAY HOWEVER THEY WOULD HAVE TO DISCLOSE THAT THEY WEREN'T APPLYING A UNIFORM STANDARD THE S. E. C. WILL COLLECT COMMENTS ON THE PROPOSAL FOR FORTY FIVE DAYS BEFORE CONSIDERING A FINAL RULE WRAP ACCOUNT INFORMATION CURRENTLY IS PART OF THE BROAD DISCLOSURE STATEMENTS FILED BY INVESTMENT ADVISERS AND UPDATED ANNUALLY MR. BARBASH SAID THE PROPOSAL TO OBTAIN MORE INFORMATION ABOUT WRAP ACCOUNTS COULD LEAD TO AN EFFORT TO OVERHAUL DISCLOSURE REQUIREMENTS FOR ALL INVESTMENT ADVISERS THE NEXT STEP FOR WRAP ACCOUNTS PROBABLY WILL BE AN S. E. C. STAFF DIRECTIVE REMINDING WRAP ACCOUNT SPONSORS OF THEIR DUTY TO ASCERTAIN THAT WRAP ACCOUNTS ARE SUITABLE INVESTMENTS FOR THEIR CLIENTS AND REMINDING WRAP ACCOUNT MANAGERS OF THEIR DUTY TO OBTAIN THE BEST EXECUTION OF CUSTOMER ORDERS MR. BARBASH SAID THIRD MR. BARBASH SAID THE S. E. C. INTENDS TO HEIGHTEN ITS MONITORING OF WRAP ACCOUNTS INCLUDING INCREASES IN TARGETED INSPECTIONS OF THE LITERATURE AND SALES PRACTICES OF WRAP ACCOUNT SPONSORS INTERNATIONAL BUSINESS MACHINES CORPORATION'S RECENTLY RESIGNED CHIEF STRATEGIST M. BERNARD PUCKETT WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF MTEL CORPORATION AND CHIEF EXECUTIVE OF ITS SKYTEL CORPORATION PAGING UNIT MR. PUCKETT SURPRISED THE INDUSTRY WHEN HE RESIGNED LATE LAST YEAR AS I. B. M.'S SENIOR VICE PRESIDENT FOR CORPORATE STRATEGY THE TWENTY SIX YEAR I. B. M. EMPLOYEE HAD BEEN IN THE TOP STRATEGY JOB ONLY A FEW MONTHS AND SOME EXECUTIVES SUSPECTED A CLASH WITH I. B. M.'S NEW CHIEF EXECUTIVE IN AN INTERVIEW YESTERDAY MR. PUCKETT GAVE THE FIRST PUBLIC EXPLANATION FOR HIS DEPARTURE HE SAID THAT AT THE TIME OF HIS APPOINTMENT TO THE I. B. M. POSITION HE INFORMED CHAIRMAN LOUIS V. GERSTNER JUNIOR THAT HE HAD ASPIRATIONS TO RUN HIS OWN COMPANY AND COULDN'T COMMIT TO THE NEW POST FOR QUOTE THE DECADE QUOTE AS MR. GERSTNER SOUGHT AS TIME WENT ON IT BECAME APPARENT THAT MR. PUCKETT SHOULD LEAVE HE SAID AND THE TWO MADE A MUTUAL DECISION HE SAID THAT JOHN PALMER CHAIRMAN OF MTEL AND LONGTIME FRIEND CONTACTED HIM AFTER THE NEWS BECAME PUBLIC THAT HE WAS LEAVING ARMONK N. Y. BASED I. B. M. MR. PUCKETT FORTY NINE YEARS OLD WILL BE CHIEF EXECUTIVE OF SKYTEL AND TWO OTHER MTEL SUBSIDIARIES MTEL INTERNATIONAL INCORPORATED AND MTEL TECHNOLOGIES INCORPORATED MR. PUCKETT SAID HE WILL BE DEVELOPING MTEL'S LONG RANGE BUSINESS STRATEGY OF COMBINING COMMUNICATIONS AND COMPUTERS AS WELL AS DEVELOPING A NATIONWIDE WIRELESS NETWORK AND COORDINATING MTEL'S MOVE INTO LATIN AMERICAN MARKETS MTEL HAD A NINETEEN NINETY TWO LOSS OF TWO POINT NINE MILLION DOLLARS ON REVENUE OF ONE HUNDRED TWELVE POINT SIX MILLION DOLLARS THE MARCH OF DIMES BIRTH DEFECTS FOUNDATION IS LAUNCHING A TELEVISION AND RADIO CAMPAIGN TO URGE PROSPECTIVE MOTHERS TO TAKE FOLIC ACID A B. VITAMIN TO PREVENT SO CALLED NEURAL TUBE BIRTH DEFECTS THE CAMPAIGN FOLLOWS A RECENT FOOD AND DRUG ADMINISTRATION DECISION ALLOWING MAKERS OF DIETARY SUPPLEMENTS TO CLAIM THAT FOLIC ACID COULD REDUCE DEFECTS SUCH AS SPINA BIFIDA A LEADING CAUSE OF CHILDHOOD PARALYSIS AT A SPEECH SPONSORED BY THE MARCH OF DIMES HERE F. D. A. COMMISSIONER DAVID KESSLER SAID WOMEN OF CHILDBEARING AGE SHOULD TAKE ZERO POINT FOUR MILLIGRAMS OF FOLIC ACID A DAY BY TAKING A MULTIVITAMIN OR EATING FIVE SERVINGS OF GREEN LEAFY VEGETABLES BEANS AND CITRUS FRUITS A DAY STUDIES HAVE SHOWN THAT AN ESTIMATED FIFTY PERCENT OF SERIOUS DEFECTS OF THE BRAIN SKULL AND SPINE KNOWN AS NEURAL TUBE DEFECTS CAN BE PREVENTED EACH YEAR IF WOMEN IN THE U. S. CONSUMED THIS AMOUNT OF FOLIC ACID PRIOR TO CONCEPTION AND DURING THE EARLY MONTHS OF PREGNANCY EACH YEAR AN ESTIMATED TWO THOUSAND FIVE HUNDRED BABIES ARE BORN WITH THESE DEFECTS IN THE U. S. BRITISH PETROLEUM P. L. C. YESTERDAY SAID IT WILL CLOSE ITS MONEY LOSING ETHYLENE CRACKER IN SOUTH WALES THE BRITISH OIL COMPANY SAID CLOSURE OF THE BAGLAN BAY FACILITY SCHEDULED FOR THE END OF MARCH WILL RESULT IN THE LOSS OF SIX HUNDRED JOBS CLOSING COSTS ALSO WILL BE THE MAIN COMPONENT OF A TWO HUNDRED MILLION POUND TWO HUNDRED NINETY EIGHT MILLION DOLLARS EXCEPTIONAL PRETAX CHARGE IN FOURTH QUARTER RESULTS B. P. SAID THE ANNOUNCEMENT DIDN'T SURPRISE INDUSTRY WATCHERS BECAUSE A YEAR AGO B. P. ADDED SIMILAR ETHYLENE CRACKING CAPACITY TO ITS MORE EFFICIENT FACILITY IN GRANGEMOUTH SCOTLAND B. P.'S DECISION REFLECTS A WIDER NEED BY WEST EUROPE'S PETROCHEMICALS INDUSTRY UNDER PRESSURE FROM OVERCAPACITY AND SLUGGISH ECONOMIES TO LOWER ITS COSTS AND IMPROVE EFFICIENCY THE BAGLAN BAY CRACKER HAD BEEN RUNNING AT ABOUT FIFTY FIVE PERCENT OF CAPACITY SINCE LAST OCTOBER WHEN IT REOPENED AFTER A MAINTENANCE CLOSURE DURING THE SUMMER THE PLANT HAS AN ANNUAL CAPACITY OF THREE HUNDRED THIRTY FIVE THOUSAND METRIC TONS THE PLANT PRODUCES ETHYLENE PROPYLENE GASOLINE ETHYL BENZENE AND BENZENE CONCENTRATE A B. P. OFFICIAL SAID THE BAGLAN BAY CRACKER WAS RACKING UP LOSSES IN THE QUOTE TENS OF THOUSANDS QUOTE OF POUNDS B. P.'S PROFIT HAS RECOVERED SHARPLY SINCE THE COMPANY REPORTED A STUNNING EIGHT HUNDRED TWELVE MILLION POUND LOSS FOR THE SECOND QUARTER OF NINETEEN NINETY TWO IT HAS CUT COSTS AND DISPOSED OF ASSETS TO REDUCE DEBT AND CONCENTRATE ON ITS CORE OIL AND GAS ACTIVITIES THE COMPANY HASN'T BEEN ALONE AMONG MAJOR EUROPEAN PETROCHEMICALS PRODUCERS IN REPORTING LOSSES FROM SUCH OPERATIONS WHILE ATTEMPTING TO RESTRUCTURE THEM YET AN INDUSTRY INITIATIVE TO CUT ETHYLENE CAPACITY FAILED LAST MONTH WHEN THE ASSOCIATION OF PETROCHEMICALS PRODUCERS IN EUROPE FOUND INSUFFICIENT SUPPORT FOR ORDERLY REDUCTIONS THAT WOULD HAVE BEEN FINANCED BY A LEVY BASED ON CAPACITY MOST COMPANIES ARE LOATH TO CONCEDE MARKET SHARE GUY PHILLIPS EUROPEAN CHEMICALS ANALYST AT PARIBAS SAID HE DOESN'T SEE B. P.'S MOVE BEING FOLLOWED BY A WHOLE SPATE OF CLOSURE ANNOUNCEMENTS THE APPE RECKONS A WHOLE STRING OF CLOSURES ISN'T NEEDED ANYWAY IT CALCULATED WEST EUROPEAN ETHYLENE CAPACITY LAST YEAR WAS EIGHTEEN POINT THREE MILLION TONS AND UTILIZATION WAS EIGHTY PERCENT TO EIGHTY FIVE PERCENT IN NINETEEN NINETY FOUR THE INDUSTRY ASSOCIATION RECKONS NEW PLANTS WILL RAISE CAPACITY TO NINETEEN POINT FOUR MILLION TONS WITH SOME MORE BEING ADDED THROUGH PLANT EFFICIENCIES IN ITS ABORTED ATTEMPT TO REDUCE OUTPUT THE APPE HAD BEEN AIMING FOR A CUT OF AT LEAST ONE POINT FIVE MILLION TONS A TOP EXECUTIVE HAS RESIGNED FROM AILING POLICY MANAGEMENT SYSTEMS CORPORATION THE INSURANCE SOFTWARE CONCERN CONFIRMED YESTERDAY THAT BERNARD MAZON STEPPED DOWN AS EXECUTIVE VICE PRESIDENT MR. MAZON COULDN'T BE REACHED AND POLICY MANAGEMENT WOULDN'T COMMENT ON THE REASONS FOR HIS DEPARTURE A SUCCESSOR HASN'T BEEN NAMED IN APRIL THE COMPANY SAID ITS FIRST QUARTER RESULTS WOULD BE WELL BELOW EXPECTATIONS ITS SHARE PRICE FELL FORTY THREE PERCENT IN RESPONSE SINCE THEN POLICY MANAGEMENT'S FINANCIAL REPORTING HAS BECOME THE TARGET OF FEDERAL AND INTERNAL INVESTIGATIONS THE COMPANY HAS REORGANIZED SEVERAL BUSINESS UNITS TO KEEP PACE WITH SHIFTING MARKETS THE COMPANY'S FAST GROWING TOTAL POLICY MANAGEMENT SERVICES WILL BECOME A SEPARATE BUSINESS GROUP RUN BY SENIOR VICE PRESIDENT JAMES BROWN FORTY SEVEN YEARS OLD STEPHEN G. MORRISON FORTY SEVEN WAS NAMED EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL HE IS CURRENTLY A PARTNER WITH NELSON MULLINS RILEY AND SCARBOROUGH IN SOUTH CAROLINA PRESIDENT CLINTON HAS PAINTED HIMSELF INTO A CORNER ON THE ISSUE OF U. S. TRADE WITH CHINA LAST SPRING WHEN HE RENEWED CHINA'S MOST FAVORED NATION TRADING STATUS MR. CLINTON SAID BEIJING MUST MAKE QUOTE OVERALL SIGNIFICANT PROGRESS QUOTE IN HUMAN RIGHTS TO WIN RENEWAL AGAIN THIS YEAR BUT CHINA ISN'T COOPERATING NOW THE ADMINISTRATION IS RELUCTANT TO CARRY OUT ITS THREAT FOR FEAR OF DISRUPTING THE HUGE U. S. BUSINESS OPPORTUNITIES AVAILABLE IN CHINA THE WORLD'S FASTEST GROWING ECONOMY THE ADMINISTRATION HAS LAUNCHED A CAMPAIGN TO PERSUADE CHINA THAT IT MUST SHOW HUMAN RIGHTS IMPROVEMENTS QUICKLY OR RISK LOSS OF FAVORED TRADE STATUS IT HAS ENLISTED VARIOUS CONGRESSIONAL DELEGATIONS GOING TO CHINA TO DELIVER THAT MESSAGE MOST RECENTLY IT ASKED REPRESENTATIVE RICHARD GEPHARDT D. MISSOURI THE HOUSE MAJORITY LEADER TO ADD A STOP IN CHINA TO HIS CURRENT TRIP TO ASIA SO THAT HE COULD TELL BEIJING'S LEADERS ABOUT THE NEED FOR SUBSTANTIAL PROGRESS ON HUMAN RIGHTS IN THAT COUNTRY THE STATE DEPARTMENT'S ANNUAL HUMAN RIGHTS REPORT WHICH WILL BE PUBLISHED SOON IS EXPECTED TO SAY THAT CHINA HASN'T YET MADE SUFFICIENT PROGRESS TO JUSTIFY RENEWAL OF M. F. N. UNDER MR. CLINTON'S STANDARD ACCORDING TO A REPORT IN THE NEW YORK TIMES THAT WAS CONFIRMED BY PEOPLE FAMILIAR WITH THE DRAFT OF THE REPORT MOREOVER A U. S. CUSTOMS SERVICE MEMO SAYS THAT CHINA ALSO ISN'T LIVING UP TO ITS COMMITMENT TO PERMIT THE U. S. TO MONITOR CERTAIN FACILITIES TO MAKE SURE BEIJING ISN'T EXPORTING GOODS MADE BY PRISON LABOR TO THE U. S. THE MEMO SAYS CHINA HAS ALLOWED U. S. OFFICIALS TO VISIT ONLY ONE OF THE FIVE PRISON FACILITIES THAT THE U. S. ASKED TO INSPECT DURING HIS PRESIDENTIAL CAMPAIGN MR. CLINTON CRITICIZED PRESIDENT BUSH FOR CODDLING DICTATORS IN BEIJING BY TRYING TO MAINTAIN A BROAD RELATIONSHIP WITH CHINA BUT LAST FALL FOLLOWING A POLICY REVIEW THE CLINTON ADMINISTRATION ADOPTED ITS OWN ENGAGEMENT STRATEGY TOWARD BEIJING SENIOR OFFICIALS SAY THE POLICY CHANGE WAS PROMPTED BY ECONOMIC CONCERNS AND BY THE DESIRE OF OTHER ASIAN NATIONS WHICH ARE FRIGHTENED BY CHINESE MUSCLE FLEXING TO SEE THE U. S. MAINTAIN GOOD TIES WITH BEIJING SINCE THEN THE ADMINISTRATION HAS LIFTED SEVERAL RESTRICTIONS PUT IN PLACE AFTER CHINA'S MASSACRE OF STUDENTS AT TIANANMEN SQUARE IN NINETEEN EIGHTY NINE HIGH LEVEL MILITARY EXCHANGES WERE RESUMED IN NOVEMBER THE SAME MONTH MR. CLINTON MET IN SEATTLE WITH CHINA'S PRESIDENT JIANG ZEMIN THE CLINTON MEETING WAS THE GREATEST PLUM OF ALL IT WAS THE ULTIMATE RECOGNITION THAT THE STAIN OF TIANANMEN HAS BEEN REMOVED SAYS MIKE JENDRZEJCZYK WASHINGTON DIRECTOR OF ASIA WATCH A HUMAN RIGHTS GROUP THERE HAVE BEEN SIGNS THAT SOME ADMINISTRATION OFFICIALS WOULD LIKE TO REMOVE THE HUMAN RIGHTS ISSUE FROM THE ANNUAL M. F. N. DEBATE BECAUSE THEY DON'T WANT IT TO BE THE CONTROVERSIAL CENTERPIECE OF U. S. POLICY TOWARD CHINA LAST SEPTEMBER FOLLOWING A TRIP TO CHINA JOHN SHATTUCK ASSISTANT SECRETARY OF STATE FOR HUMAN RIGHTS REPORTED SCANT HUMAN RIGHTS PROGRESS THERE BUT HE ADDED THAT IF SUBSTANTIAL PROGRESS OCCURRED BY JUNE THE ADMINISTRATION MIGHT NOT ONLY RENEW M. F. N. FOR A YEAR BUT WOULD CONSIDER ENDING THE PRACTICE OF LINKING BEIJING'S TRADE STATUS TO SPECIFIC HUMAN RIGHTS STANDARDS U. S. OFFICIALS INSISTED THAT MR. SHATTUCK'S STATEMENT WASN'T MEANT TO SUGGEST A POLICY SHIFT AND IN A PUBLISHED INTERVIEW LAST MONTH THE U. S. AMBASSADOR TO CHINA STAPLETON ROY SAID THAT IMPROVEMENT IN THE LIVES OF CHINA'S CITIZENS RESULTING FROM ECONOMIC LIBERALIZATION SHOULD ALSO BE TAKEN INTO ACCOUNT SENIOR U. S. OFFICIALS INSIST THE ADMINISTRATION HAS NO IMMEDIATE PLANS TO STOP LINKING M. F. N. RENEWAL TO SPECIFIC HUMAN RIGHTS STANDARDS AN OFFICIAL ADDS HOWEVER THAT WE WOULD LIKE TO SEE ENOUGH PROGRESS SO WE COULD GO BACK TO THE PRE NINETEEN EIGHTY NINE STANDARD WHICH WAS BASED MOSTLY ON WHETHER COMMUNIST COUNTRIES PERMITTED FREE EMIGRATION ROBERT RUBIN HEAD OF THE PRESIDENT'S NATIONAL ECONOMIC COUNCIL IS AMONG THOSE WHO BELIEVE THAT REVOKING CHINA'S TRADE STATUS WOULD HARM U. S. COMPANIES MORE THAN CHINA HUMAN RIGHTS ACTIVISTS WORRY THAT MR. CLINTON WON'T DISRUPT CHINA TRADE AS LONG AS CHINA MAKES SOME MINIMAL PROGRESS ON HUMAN RIGHTS IN THE MEETINGS WITH MR. CLINTON AND OTHER OFFICIALS IN SEATTLE CHINA DISCUSSED RELEASING A HANDFUL OF DISSIDENTS AND SICK PRISONERS FROM JAIL RESOLVING SOME CASES OF PEOPLE WHO WANT EXIT VISAS AND PROMISING MORE COOPERATION ON MONITORING PRISON LABOR MEANWHILE IN A RECENT ADDRESS HERE CHINA'S AMBASSADOR TO THE U. S. CITED THE QUOTE GOOD OPPORTUNITIES FOR AMERICAN BUSINESSES TO INCREASE THEIR SHARE IN THE CHINA MARKET QUOTE AND SAID HE HOPED THE ADMINISTRATION WOULD MAKE QUOTE A SENSIBLE DECISION QUOTE ON THE M. F. N. ISSUE FRANKLIN D. HAFTL WILLIAM L. MUSSER AND STEPHEN L. WAY WERE ELECTED DIRECTORS OF THIS REINSURANCE COMPANY INCREASING THE BOARD'S SIZE TO FIVE MR. HAFTL FIFTY NINE YEARS OLD IS PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF UNIONE ITALIANA REINSURANCE COMPANY OF AMERICA INCORPORATED MR. MUSSER FIFTY ONE IS A GENERAL PARTNER OF BARKER LEE AND COMPANY AN INVESTMENT MANAGEMENT FIRM AND MR. WAY FORTY FOUR IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF H. C. C. INSURANCE HOLDINGS INCORPORATED IN HIS OWN WAY HELMUT WERNER IS TRYING TO STEER MERCEDES BENZ A. G. ONTO THE TRACK ALONG WHICH CHRYSLER CORPORATION HAS BEEN RACING ONE YEAR INTO HIS MAKEOVER OF THE GERMAN LUXURY CAR COMPANY THE CHAIRMAN OF DAIMLER BENZ A. G.'S MOST PROMINENT UNIT DESCRIBED HOW HE INTENDS TO OFFER VEHICLES IN SEGMENTS WHERE MERCEDES BENZ HASN'T HAD A PRESENCE WHILE CUTTING SPENDING ON NEW PRODUCTS CHRYSLER HAS BECOME THE TOAST OF THE CAR WORLD BY PULLING OFF A SIMILAR FEAT SPECIFICALLY MR. WERNER DISCLOSED THAT IN THE NEXT FIVE YEARS SPENDING FOR DEVELOPMENT OF NEW PRODUCTS WILL BE CUT TO EIGHTEEN POINT SEVEN BILLION DOLLARS MARKS TEN POINT SEVEN FOUR BILLION DOLLARS ELEVEN PERCENT LESS THAN IN THE PAST FIVE YEARS DURING THE PERIOD MERCEDES BENZ EXPECTS TO INTRODUCE A NEW LUXURY SPORT UTILITY VEHICLE TO OPEN A FACTORY IN ALABAMA TO BUILD IT AND TO ADD A SMALL CITY CAR AND A SPORTY CONVERTIBLE AMONG OTHER PRODUCTS QUOTE WE WILL GET MUCH MORE FOR OUR INVESTMENT THAN WE DID BEFORE QUOTE MR. WERNER SAID THE EXECUTIVE WAS INTERVIEWED IN THE DETROIT AREA WHILE SQUEEZED SHOULDER TO SHOULDER IN THE BACK SEAT OF A CADILLAC ON THE WAY TO CATCH A PLANE TO MEXICO WHERE HE WAS TO OPEN A NEW BUS FACTORY WHEN ASKED ABOUT THE WORLD'S TOUGHEST COMPETITORS TODAY MR. WERNER LISTED TRADITIONAL ARCHRIVAL BAYERISCHE MOTOREN WERKE THE LEXUS DIVISION OF TOYOTA MOTOR CORPORATION AND CHRYSLER THE U. S. AUTO MAKER HAS BEEN SETTING NEW STANDARDS FOR LEAN PRODUCT DEVELOPMENT AND HAS MANAGED TO EXTEND AND UPGRADE ITS PRODUCT LINE IN THE U. S. WITH A STRING OF HITS MR. WERNER SAID HIS EFFORTS TO INTRODUCE A MERCEDES SPECIFIC LEAN LOGIC HAVE LED TO COST REDUCTIONS OF ABOUT FOUR BILLION MARKS A YEAR SINCE HE TOOK OVER OPERATING CONTROL IN JANUARY NINETEEN NINETY THREE THAT PARTLY REFLECTS THE ELIMINATION OF FOURTEEN THOUSAND THREE HUNDRED JOBS LAST YEAR MR. WERNER SAID A FURTHER EIGHT THOUSAND JOBS ARE TO BE CUT THIS YEAR DOWN FROM AN EARLIER PLAN TO ELIMINATE THIRTEEN THOUSAND THREE HUNDRED IN NINETEEN NINETY FOUR HE SAID MERCEDES BENZ'S LABOR UNIONS PERSUADED THE COMPANY TO LOWER ITS SIGHTS BY AGREEING TO GREATER JOB FLEXIBILITY DESPITE THE DISMAL ECONOMIC OUTLOOK FOR EUROPE MR. WERNER WAS BULLISH ABOUT MERCEDES BENZ'S PROSPECTS FOR THIS YEAR HE FORECAST THAT THE COMPANY'S CAR SALES WOULD RISE ABOUT TWELVE PERCENT TO FIVE HUNDRED SEVENTY THOUSAND VEHICLES WORLD WIDE ABOUT SEVENTY THOUSAND OF THOSE CARS WOULD BE SOLD IN THE U. S. HE SAID COMPARED WITH NINETEEN NINETY THREE SALES OF ABOUT SIXTY ONE THOUSAND MERCEDES BENZ'S ENTRY INTO NEW SEGMENTS WILL EXPAND THE COMPANY'S VOLUME BY NEARLY TWO HUNDRED FIFTY THOUSAND VEHICLES A YEAR TO AROUND EIGHT HUNDRED FIFTY THOUSAND WITHIN THE NEXT TEN YEARS MR. WERNER SAID THE BIGGEST SELLER IS EXPECTED TO BE A NEW SUBCOMPACT CITY CAR THAT MERCEDES BENZ IS PREPARING TO INTRODUCE IN NINETEEN NINETY SEVEN THAT VEHICLE IS EXPECTED TO BE PRICED IN GERMANY AROUND THIRTY THOUSAND MARKS THESE ARE THE TIMES THAT TRY RUSSIAN SOULS THE ECONOMIC REFORMERS ARE IN POLITICAL RETREAT SHOCK THERAPY IS DENIGRATED BY THE PRIME MINISTER THE CLINTON POLICY OF SUPPORTING BORIS YELTSIN WHICH WILL BE MUCH IN EVIDENCE DURING THE U. S. PRESIDENT'S VISIT TO MOSCOW TODAY HAS CRITICS IN MOSCOW AND WASHINGTON WE'VE SUPPORTED MR. YELTSIN AND THE BAND OF REFORMERS SINCE BEFORE THE BEGINNING IT'S TIME TO STEP BACK AND ASK SOME TOUGH QUESTIONS ABOUT WHERE RUSSIA IS GOING DOES WESTERN SUPPORT FOR MR. YELTSIN AND THE REFORMERS INVOLVE US IN A QUAGMIRE THIS IS THE CASE MADE BY SOVIETOLOGIST PETER REDDAWAY AND OTHERS THEIR POINT IS THAT RADICAL REFORMERS SUCH AS YEGOR GAIDAR ARE ON THE WAY DOWN AND BY MAINTAINING LINKS THE U. S. DRAGS ITSELF DOWN WITH THEM AND ALIENATES MANY RUSSIANS MR. GAIDAR AND HIS FELLOW REFORMERS HAVE INDEED MADE SOME BLUNDERS AND THEY SEEM TO SPEND MUCH OF THEIR TIME FEUDING AMONG THEMSELVES BUT IT IS NOT TRUE THAT THE REFORMIST CAUSE IS LOST EVEN THOUGH SOME OF THE REFORMERS WON'T BE PRESENT IN MR. YELTSIN'S NEW SLIMMED DOWN GOVERNMENT THE HALLMARK OF THAT GOVERNMENT WON'T BE QUOTE FASTER QUOTE REFORM OR QUOTE SLOWER QUOTE REFORM BUT SELF CONTRADICTION FOREIGN POLICY MAY BEAR THE WEST'S CAREFUL ATTENTION BUT AT THE SAME TIME MR. YELTSIN HAS JUST APPOINTED YURI BATURIN A PRO WESTERN REFORMER AS HIS SECURITY ADVISER RECENTLY WE DETAILED SOME OF THE MEASURES TO ACCELERATE PRIVATIZATION THAT MR. YELTSIN HAS UNDERTAKEN SINCE THE ELECTION BUT THE REFORMERS SUFFERED A DEFEAT LAST WEEK WHEN THE GOVERNMENT DECIDED TO UNIFY THE RUSSIAN AND BELARUS ECONOMIES NOW THERE WILL BE TWO CENTERS FOR THE EMISSION OF RUBLES MOSCOW AND MINSK THAT'S ONE OF MANY RECENT GOVERNMENT POLICIES THAT IS SURE TO BOOST INFLATION THE MEDIA WILL TEND TO EMPHASIZE THE BAD POLICIES BECAUSE THE TURNING AWAY FROM REFORM THEME IS DRAMATIC THE WEST COULD SIMPLY STAND BACK FROM THIS CONFUSION AND VOICE SUPPORT FOR DEMOCRATIC INSTITUTIONS THAT'S PRISTINE BUT THE FACT IS THAT WITHOUT WESTERN PRESSURE MR. GAIDAR AND THE REST MIGHT HAVE BEEN JETTISONED FROM THE GOVERNMENT LONG AGO STAYING INVOLVED RISKS GETTING OUR HANDS DIRTY BUT IT ALSO MEANS MAKING A DIFFERENCE THE U. S. SHOULD SUPPORT THE ENTIRE REFORM CAMP RATHER THAN INDIVIDUALS RUSSIA IS SUFFERING FROM A CRISIS OF AUTHORITY NOBODY LISTENS TO ANYBODY ELSE SO HOPES OF SEQUENCING A THERAPY ARE DELUSIONAL ON PAPER WE HAVE SEVERAL PROBLEMS WITH THE GAIDAR APPROACH ITS TAX POLICY IS OVERLY INFLUENCED BY I. M. F. STYLE AUSTERITY TAX RATES ARE CRUSHING BUT IT IS THE ONLY REFORM POLICY ON OFFER RUSSIA DOESN'T HAVE A VACLAV KLAUS THE CZECH LEADER WHO SPENT YEARS INSIDE HIS IRON CURTAIN COUNTRY READING TEXTS BY CLASSICAL ECONOMISTS THE REFORM IS NOT FATALLY FLAWED AND AS WE SAY THE PAPER POLICY IS FAR REMOVED FROM REAL LIFE IT COULD BE ARGUED THAT EXTORTIONISTS HAVE GREATER INFLUENCE ON BUSINESS PLANNING THAN GOVERNMENT THE MOST IMPORTANT THING IS TO KEEP PRIVATIZATION MOVING THE CURRENT PAIN IS NOT CAUSED BY RADICAL REFORM BUT BY THE COLLAPSE OF THE COMMUNIST APPARATUS SO DISMANTLING THE APPARATUS IS PARAMOUNT AT THAT THE GOVERNMENT IS SUCCEEDING THE MONETARY MESS CONSTITUTES A MASSIVE WELFARE BRIBERY SCHEME WE DON'T DEFEND IT BUT CAN AT LEAST SEE A RATIONALE THE HUGE EMISSIONS WERE DELIVERED TO FACTORIES TO PREVENT LARGE SCALE UNEMPLOYMENT THEY DEFLECTED MANAGERS AND GENERALS FROM WAGING A REBELLION AGAINST PRIVATIZATION IF THE WEST WANTS TO THROW A FEW BILLION DOLLARS AT THE RUSSIANS TO HELP WIN PUBLIC SUPPORT FOR REFORM THAT'S FINE BUT SURELY THERE IS A BETTER WAY THAN THROUGH THE I. M. F. WITH ITS GROWTH CRIPPLING CONDITIONS RUSSIA NOW HAS WILD CAPITALISM WILL IT EVER BECOME ORDERLY OR WILL IT JUST SPIN FURTHER OUT OF CONTROL WE START FROM THE PREMISE THAT YOU CAN'T BUILD A MARKET ECONOMY AND THEN DROP IT BY LEGAL FIAT ON A COUNTRY THE INSTITUTIONS THAT ORGANIZE A MARKETPLACE HAVE TO EMERGE ORGANICALLY THIS TAKES TIME IN THE MEANTIME CORRUPTION IS EVERYWHERE AND MANY UNSAVORY PEOPLE GET RICH THERE ARE SIGNS THAT THINGS ARE SETTLING DOWN THE NEW CONSTITUTION WHILE FAR FROM PERFECT IS THE BASIS FOR A MANAGEABLE POLITICAL PROCESS YOUNG PEOPLE HAVE ABSORBED WESTERN PRACTICES WITH AMAZING SPEED SOME OF THE BIG COMMERCIAL BANKS AND INVESTMENT FUNDS ARE RUN BY SERIOUS FINANCIAL MANAGERS THE PRIVATIZED COMPANIES ARE MOVING GRADUALLY TO CREATE THEIR OWN TRADING NETWORKS THE GOOD ONES HAVE AN INTEREST IN INSTITUTING HONEST PRACTICES BORIS YELTSIN IS NOT A ROLE MODEL FOR POLICY WONKS THE WAY MIKHAIL GORBACHEV WAS BUT HIS INSTINCTS ARE TO GO TO THE POLLS WHEN IN TROUBLE AND OFTEN ENOUGH HE HAS SIDED WITH THE REFORMERS HE'S THE ONLY TRAIN LEAVING THE STATION THE WEST SHOULD BE WITH HIM TRYING TO SHOW THE RIGHT DIRECTION K. L. A. INSTRUMENTS CORPORATION EXPECTS TO REPORT NET INCOME OF THIRTY CENTS A SHARE ON SALES OF ABOUT FIFTY SEVEN MILLION DOLLARS FOR ITS FISCAL SECOND QUARTER ENDED DECEMBER THIRTY FIRST IN THE YEAR EARLIER QUARTER THE MAKER OF EQUIPMENT USED IN SEMICONDUCTOR MANUFACTURING HAD NET INCOME OF ONE POINT FOUR MILLION DOLLARS OR SEVEN CENTS A SHARE ON SALES OF THIRTY EIGHT POINT SEVEN MILLION DOLLARS ACRES GAMING INCORPORATED RECEIVED A CONTRACT FOR ITS CONCEPT THE THIRD SLOT MERCHANDISING SYSTEM FROM RIO SUITE HOTEL AND CASINO LAS VEGAS THE CONTRACT IS VALUED AT MORE THAN ONE POINT FIVE MILLION DOLLARS AND INSTALLATION WILL BEGIN IN FEBRUARY AIR METHODS CORPORATION LAUNCHED A JOINT VENTURE TO PROVIDE AIR MEDICAL SERVICE IN MEXICO THE COMPANY AIR MEDICA MOVIL S. A. IS BASED IN MEXICO CITY AND IS PARTIALLY OWNED BY MEDICA MOVIL S. A. TERMS WEREN'T DISCLOSED CLIFFS DRILLING COMPANY WILL DRILL WELLS IN VENEZUELA FOR CORPOVEN S. A. AND IN MEXICO FOR PEMEX UNDER THE TERMS OF SEVERAL NEWLY AWARDED CONTRACTS THAT WILL GENERATE ABOUT FIFTY MILLION DOLLARS IN REVENUE DURING NINETEEN NINETY FOUR AND NINETEEN NINETY FIVE BENDING SOME PREVIOUSLY RIGID RULES BIG COMPANIES ARE OFFERING MORE EMPLOYEES FLEXIBLE WORK SCHEDULES FLEXIBLE SCHEDULES HAVE LONG BEEN USED BY MANAGERS TO RETAIN HIGHLY PRIZED EMPLOYEES WHO MIGHT OTHERWISE LEAVE SAYS RODGERS AND ASSOCIATES A UNIT OF WORK SLASH FAMILY DIRECTIONS INCORPORATED BOSTON BUT NOW SOME OF THE COUNTRY'S MAJOR CORPORATIONS ARE CONDUCTING EXPERIMENTS IN FLEXIBILITY ON HUNDREDS OF WORKERS WITH ALL KINDS OF ABILITIES AND NEEDS THE COMPANIES ARE PUSHING FLEXIBLE WORK ARRANGEMENTS DOWN THROUGH THE RANKS AS A KIND OF SHOCK TREATMENT FOR STRESSED OUT WORKERS THEIR GOAL IS NOT SIMPLY TO SATISFY EMPLOYEES' WISHES BUT ALSO TO RAISE OUTPUT QUOTE THE WORK FORCE TODAY IS SCREAMING FOR FLEXIBILITY QUOTE SAYS ROBERT LAMBERT EXECUTIVE VICE PRESIDENT HUMAN RESOURCES FOR CARTER HAWLEY HALE STORES INCORPORATED IF YOU CAN HELP EMPLOYEES MEET THEIR OUTSIDE RESPONSIBILITIES YOU'RE GOING TO HAVE A MORE PRODUCTIVE MORE TURNED ON AND MORE ENERGIZED WORK FORCE AT XEROX CORPORATION TOUGH PRODUCTIVITY OBJECTIVES LED MANAGERS TO LOOK AT WHAT WENDY STARR MANAGER OF LIFE CYCLE PROGRAMS AND POLICIES CALLS RADICAL MEASURES TO IMPROVE OUTPUT WE'RE NOT TRYING TO MAKE EVERYBODY FEEL GOOD BY PROMOTING FLEXIBLE SCHEDULES SHE SAYS THE RESULT NEEDS TO BE A RECOGNITION THAT FLEXIBILITY IS A BUSINESS TOOL JIM EDWARDS ONE OF THE MANAGERS XEROX CHOSE TO TEST THE LIMITS OF FLEXIBILITY USED SHOCK TREATMENT TO GET THE EXPERIMENT ROLLING AT HIS UNIT KNOWN FOR HIS MOTTO WMB FOR WE MEAN BUSINESS MR. EDWARDS THE TOUGH TALKING CONTROLLER OF XEROX'S ADMINISTRATIVE CENTER IN DALLAS HAD LONG BANNED FLEXIBLE SCHEDULES IN FAVOR OF AN EIGHT TO FIVE REGIMEN BUT LAST FEBRUARY MR. EDWARDS STEPPED TO THE PODIUM AT AN ANNUAL EMPLOYEE MEETING AND DROPPED A BOMB STARTING RIGHT AWAY HE TOLD THREE HUNDRED ASSEMBLED WORKERS EMPLOYEES COULD SET THEIR OWN HOURS QUOTE THIS IS HIGH RISK TO ME QUOTE HE TOLD HIS STUNNED SUBORDINATES BUT I AM WILLING TO TAKE THAT RISK MR. EDWARDS SAYS HIS SURPRISE ANNOUNCEMENT WAS A NICE ICEBREAKER TO START A NEEDED CULTURAL CHANGE IN MOTION WORKERS IN HIS DIVISION WHICH HAS A HIGH PROPORTION OF SINGLE PARENTS AND DUAL CAREER COUPLES WITH CHILD CARE AND FAMILY PROBLEMS FELT STRESSED BY RIGID SCHEDULES ACCORDING TO INTERVIEWS BY FORD FOUNDATION FUNDED RESEARCHERS WHO ARE STUDYING THE DALLAS EXPERIMENT BUT WHILE MANAGERS IN THE DIVISION HAD ADOPTED CORPORATE POLICIES ENCOURAGING FLEXIBILITY EMPLOYEES HESITATED TO USE THEM MANY THOUGHT THEIR BOSSES DIDN'T APPROVE OF UNUSUAL SCHEDULES AND FELT THEY HAD TO HIDE PERSONAL AND FAMILY CONFLICTS AT WORK THE RESEARCHERS FOUND THERE WASN'T A TRUST LEVEL THERE MR. EDWARDS SAYS I DECIDED I HAD TO DO SOMETHING REALLY DRAMATIC AFTER THE SPEECH THE WHOLE UNIT EXPERIENCED A KIND OF WHIPLASH WITH NEARLY HALF THE EMPLOYEES CHOOSING NEW STARTING TIMES OR COMPRESSED WORKWEEKS REELING FROM THE CHANGES MIDDLE MANAGERS STARTED MEETING WEEKLY TO SHARE PROBLEMS AND SOLUTIONS WE ALL FELT UNEASY SAYS JILL ALLEN A XEROX CUSTOMER SERVICE MANAGER QUOTE WE WERE STEPPING OUT INTO THE REALM OF THE TOTALLY UNKNOWN QUOTE BUT TEN MONTHS INTO THE EXPERIMENT EMPLOYEES CONTINUE TO COVER THEIR JOBS WITHOUT MISSING A BEAT MR. EDWARDS SAYS ABSENCES HAVE FALLEN BY ONE THIRD TEAMWORK HAS IMPROVED AND WORKER SURVEYS SHOW THAT MORALE HAS RISEN FOLLOW UP INTERVIEWS BY THE FORD FOUNDATION TEAM SHOW EMPLOYEES FEEL THEY HAVE MORE CONTROL OVER THEIR WORK AND ARE DEALING BETTER WITH THEIR CUSTOMERS SAYS LOTTYE BAILYN A MASSACHUSETTS INSTITUTE OF TECHNOLOGY MANAGEMENT PROFESSOR WHO IS HEADING THE RESEARCH XEROX IS PLANNING TO APPLY WHAT IT IS LEARNING IN DALLAS AT ITS STAMFORD CONNECTICUT HEADQUARTERS THE NEW GENERATION OF EXPERIMENTS REFLECTS INTEREST IN FLEXIBILITY AS A WAY TO IMPROVE TEAMWORK AT CHICAGO'S HARRIS BANK EXECUTIVES FIRST SAW THE LINK BETWEEN PRODUCTIVITY AND WORK SCHEDULES IN A NINETEEN NINETY ONE EMPLOYEE SURVEY RANKING MORE FLEXIBILITY TO GET THEIR JOBS DONE AS WORKERS' NUMBER ONE DESIRE THIS WAS A BIG AHA FOR SENIOR MANAGEMENT SAYS KIMETHA WALTHER FIRPO WORK AND LIFE PROGRAM COORDINATOR AT HARRIS EMPLOYEES WEREN'T SAYING CUT BACK MY HOURS THEY WERE SAYING THEY WANTED MORE FLEXIBILITY TO WORK IN AUGUST THE BANK SET A SWEEPING NEW ALTERNATIVE SCHEDULING POLICY WITH ELEVEN BUSINESS GOALS INCLUDING IMPROVING PRODUCTIVITY AND REDUCING COSTS MANY EMPLOYEES HAVE SEEN THE CONNECTION IN ONE INSTANCE FOUR COLLECTORS IN THE BANK'S CREDIT CARD DIVISION CREATED A SCHEDULE THAT COMBINED ELEVEN HOUR AND FOUR HOUR WORKDAYS BY SPLITTING RESPONSIBILITY FOR THE EVENING HOURS THAT NO ONE WANTED THEY ALLOWED EACH TO FASHION A SCHEDULE THAT WAS BEST FOR THEM THE RESULT HAS BEEN INCREASED COVERAGE OF EARLY EVENING HOURS PRIME TIME FOR COLLECTIONS EMPLOYEES QUOTE FEEL VERY COMMITTED TO GETTING RESULTS SO THEY CAN MAINTAIN THE SCHEDULES THAT ARE WORKABLE FOR THEM QUOTE SAYS MINERVA SOLANO A HARRIS BANK COLLECTION MANAGER FLEXIBILITY ISN'T FOR EVERYBODY MANY COMPANIES HAVE TRIED COMPRESSED WORK WEEKS ONLY TO HAVE EMPLOYEES REBEL UPON REALIZING THAT TEN HOUR OR TWELVE HOUR WORK DAYS ARE JUST TOO LONG OTHERS HAVE DITCHED WORK AT HOME SETUPS BECAUSE EMPLOYEES COULDN'T WORK UNSUPERVISED OR MISSED THEIR CO WORKERS AT THE OFFICE STILL OTHERS FIND EMPLOYEES CAN'T WORK TOGETHER WELL ENOUGH TO COORDINATE FLEXIBLE SCHEDULES BUT AMONG THOSE EMPLOYERS TRYING FLEXIBILITY SOME CITE SHARP GAINS TO EXTEND SERVICE HOURS STRIDE RITE CORPORATION PUT THE CUSTOMER SERVICE UNIT OF ITS SPERRY TOPSIDER DIVISION ON FLEXIBLE SCHEDULES THE RESULT NEARLY THIRTY HOURS HAVE BEEN ADDED TO THE UNIT'S STANDARD FORTY HOUR WORK WEEK BUT BECAUSE EMPLOYEES ARE STRETCHED THINNER DURING CERTAIN PERIODS AND CAN COMPLETE CLERICAL TASKS FASTER IN THE NEWLY ADDED EVENING HOURS COSTS HAVE INCREASED ONLY ABOUT THREE PERCENT WHAT WE'RE SEEING IS THAT IF YOU ALLOW PEOPLE TO HAVE CONTROL OVER THEIR SCHEDULE PRODUCTIVITY SHOOTS WAY UP SAYS KAREN LEIBOLD STRIDE RITE'S DIRECTOR OF WORK SLASH FAMILY PROGRAMS GIVING EMPLOYEES MORE FLEXIBILITY ALSO CAN HEAL MORALE AFTER RESTRUCTURING AFTER EMPLOYEES OF G. T. E. CORPORATION'S TELEPHONE OPERATIONS DIVISION UNDERWENT CONSOLIDATION OF SEVEN UNITS AROUND THE COUNTRY INTO ONE IN DALLAS EMPLOYEES PRESSED FOR GREATER FLEXIBILITY STARTLED BY FOCUS GROUP FINDINGS THAT SIXTY ONE PERCENT OF PARTICIPANTS HAD LOOKED FOR OTHER JOBS THAT OFFERED MORE FLEXIBILITY G. T. E. BEGAN STUDYING WAYS TO BUILD EMPLOYEE COMMITMENT AND LOYALTY SAYS RICHARD ESQUIVEL ASSISTANT VICE PRESIDENT LABOR AND EMPLOYEE RELATIONS WITHIN A FEW MONTHS LAST YEAR ONE HUNDRED TWENTY EMPLOYEES PLUNGED INTO A WORK AT HOME EXPERIMENT THAT GREW TO PART TIME WORK AND JOB SHARING THE PILOT HAS EXPANDED AND G. T. E. MANAGERS ARE CONSTANTLY ASTOUNDED AT THE CREATIVITY THAT EMPLOYEES BRING TO BEAR TO MAKE NONTRADITIONAL ARRANGEMENTS WORK SAYS JOE HEARN A GROUP PRODUCT MANAGER ONE WOMAN WHO IS SHARING A PRODUCT MANAGEMENT JOB VOLUNTEERED TO FILL IN FOR HER PARTNER WHEN THE LATTER GOES ON MATERNITY LEAVE SAVING THEIR BOSS THE TROUBLE OF FINDING A BACKUP THOUGH THE JOB SHARERS' BOSS CARLTON BAKER SAYS HE PROBABLY WOULDN'T HAVE THOUGHT OF THE IDEA HIMSELF HE IS SO PLEASED WITH THE INITIATIVE THE WOMEN HAVE SHOWN THAT I HAVE TURNED ONE HUNDRED PERCENT RESPONSIBILITY OVER TO THEM G. T. E. EXPECTS TO EXPAND THE PILOT TO ANOTHER TWO HUNDRED PEOPLE AT ITS STAMFORD CONNECTICUT HEADQUARTERS FRANKLIN ELECTRONIC PUBLISHERS INCORPORATED SAID IT WILL PUBLISH AN ELECTRONIC VERSION OF THE COMING FOURTH EDITION OF THE AMERICAN PSYCHIATRIC ASSOCIATION'S WIDELY USED REFERENCE BOOK DIAGNOSTIC AND STATISTICAL MANUAL OF MENTAL DISORDERS THE ELECTRONIC VERSION WILL BE AVAILABLE FOR FRANKLIN'S HAND HELD DIGITAL BOOK SYSTEM THE POUND SURGED AGAINST THE DOLLAR AND THE MARK AFTER SOME BULLISH U. K. EMPLOYMENT NEWS PLEASED INVESTORS BANKING ON A STRONG RECOVERY THERE THE DOLLAR SLIPPED AGAINST THE MARK WHICH BENEFITED FROM SIGNS THAT GERMAN INTEREST RATE CUTS COULD BE SLOW IN COMING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN THREE THREE SEVEN MARKS DOWN FROM ONE POINT SEVEN FOUR ONE SIX MARKS LATE TUESDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED TWELVE POINT TWO OH YEN DOWN FROM ONE HUNDRED TWELVE POINT FOUR OH YEN STERLING WAS TRADING AT ONE POINT FIVE OH THREE FIVE DOLLARS UP STRONGLY FROM ONE POINT FOUR NINE OH FIVE DOLLARS ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED TWELVE POINT TWO SIX YEN AND AT ONE POINT SEVEN THREE THREE TWO MARKS THE POUND JUMPED IN EUROPEAN TRADING AFTER BRITAIN'S EMPLOYMENT DEPARTMENT REPORTED AN UNEXPECTEDLY LARGE DROP IN THE RANKS OF THE UNEMPLOYED THIS WAS WIDELY VIEWED AS REASSURANCE THAT THE BRITISH ECONOMY IS ON THE ROAD TO RECOVERY THE REPORT SHOWED THAT THE NUMBER OF JOBLESS IN THE U. K. DROPPED FORTY SIX THOUSAND EIGHT HUNDRED DURING DECEMBER ALMOST DOUBLE THE DECLINE OF TWENTY THREE THOUSAND FIVE HUNDRED MOST ANALYSTS HAD EXPECTED TRADERS PUSHED UP THE POUND TO A KEY PSYCHOLOGICAL LEVEL AT TWO POINT SIX OH MARKS FOR THE FIRST TIME SINCE BRITAIN QUIT THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM IN SEPTEMBER NINETEEN NINETY TWO AND WHEN TRADERS SAW THAT THE POUND WAS ABLE TO SURPASS THAT POINT WITHOUT SPARKING INTERVENTION BY THE BANK OF ENGLAND TO HALT THE RISE THEY CONTINUED TO POUR INTO THE CURRENCY PUSHING IT BRIEFLY ABOVE TWO POINT SIX ONE MARKS BEFORE PROFIT TAKING EMERGED TO TRIM THE GAINS LATE IN NEW YORK THE POUND TRADED AT TWO POINT SIX OH SIX THREE MARKS UP FROM TWO POINT FIVE NINE FIVE NINE MARKS TUESDAY TRADERS LOOKED UPON THE UNEXPECTEDLY STRONG JOBS NUMBERS AS QUOTE EXTRA CONFIRMATION THAT A LONG STERLING MARK POSITION IS A GOOD IDEA QUOTE SAID BELAL KHAN SENIOR CUSTOMER DEALER AT BANK OF TOKYO IN NEW YORK THE UNITED KINGDOM IS A GOOD BET FOR THE FUTURE SAID LYNN TIERNEY VICE PRESIDENT OF SHAWMUT BANK OF BOSTON INTEREST RATES AREN'T GOING LOWER AND INFLATION ISN'T A PROBLEM TRADERS ADDED THAT YESTERDAY'S STRONG MOVE APPEARED TO DISPEL LINGERING CONCERNS THAT THE BANK OF ENGLAND WOULD STEP IN TO HALT ANY STEEP RISE IN THE POUND AGAINST THE MARK BECAUSE OF POTENTIAL DAMAGE TO BRITAIN'S EXPORTS INDEED THE U. K. TREASURY NOTED IN ITS LATEST MONTHLY REPORT ON MONETARY CONDITIONS THAT WHILE THE POUND HAS RECENTLY RISEN AGAINST THE MARK ITS TRADE WEIGHTED INDEX AGAINST THE CURRENCIES OF ALL BRITAIN'S MAJOR TRADING PARTNERS HAS SHOWN LITTLE MOVEMENT THAT COMMENT APPEARED TO PLAY DOWN THE IMPORTANCE TO BRITISH AUTHORITIES OF THE POUND'S RECENT GAINS AGAINST THE MARK MEANWHILE THE DOLLAR MOVED LOWER AGAINST THE MARK AS TRADERS REVERSED THEIR EXPECTATIONS ON THE NEAR TERM MOVEMENT OF INTEREST RATES IN THE U. S. AND GERMANY TRADERS SAID U. S. LABOR DEPARTMENT STATISTICS RELEASED YESTERDAY INDICATING THE PRODUCER PRICE INDEX DECLINED A SEASONALLY ADJUSTED ZERO POINT ONE PERCENT IN DECEMBER ATOP LAST WEEK'S WEAKER THAN EXPECTED EMPLOYMENT FIGURES ABSOLVED THE U. S. FEDERAL RESERVE FROM HAVING TO RAISE INTEREST RATES ANY TIME SOON LATE LAST YEAR MANY WERE PREDICTING THAT THE FED WOULD RAISE INTEREST RATES DURING THE FIRST QUARTER TO STEM INFLATIONARY PRESSURES TRADERS ALSO HAD BEEN EXPECTING THE BUNDESBANK TO LOWER RATES IN JANUARY BECAUSE OF CONTINUING RECESSION AND HIGH UNEMPLOYMENT BUT YESTERDAY GUNTRAM PALM A MEMBER OF THE CENTRAL BANK'S POLICY MAKING PANEL SAID HE WAS RATHER SKEPTICAL THAT THE BANK WOULD TAKE SUCH ACTION SOON EASTMAN KODAK COMPANY NAMED MICHAEL P. MORLEY FIFTY YEARS OLD SENIOR VICE PRESIDENT AND DIRECTOR OF HUMAN RESOURCES A NEW TITLE AT THE PHOTOGRAPHY AND HEALTH CARE CONCERN MR. MORLEY SUCCEEDS JOHN R. MCCARTHY SIXTY TWO WHO WILL RETIRE FEBRUARY FIRST AS SENIOR VICE PRESIDENT AND DIRECTOR OF CORPORATE RELATIONS MR. MORLEY HAS SERVED AS VICE PRESIDENT AND GENERAL MANAGER FOR CONSUMER IMAGING IN THE U. S. AND CANADA REGIONS INDUSTRY WATCHERS CALL THE MOVE A QUOTE GOOD FIT QUOTE FOR MR. MORLEY SUCCEEDING MR. MORLEY WILL BE ALEXANDER V. WASILOV FORTY WHO HAS BEEN GENERAL MANAGER OF MARKETING AND PRODUCT PLANNING FOR CONSUMER IMAGING IN THE U. S. AND CANADA REGIONS SUCCEEDING MR. WASILOV WILL BE JEROME W. JOHNSON FORTY FIVE WHO WAS NAMED GENERAL MANAGER AND VICE PRESIDENT OF NATIONAL SALES FOR CONSUMER IMAGING IN THE U. S. AND CANADA A NEW TITLE A BANKERS MEETING SET FOR THIS MORNING COULD DECIDE WHETHER METALLGESELLSCHAFT A. G.'S NEXT ANNOUNCEMENT IS A BANKRUPTCY DECLARATION YESTERDAY MORE THAN ONE HUNDRED BANK CREDITORS FAXED THEIR DECISIONS ON THE COMPANY'S PROPOSED THREE POINT FOUR BILLION MARK ONE POINT NINE FIVE BILLION DOLLARS FINANCIAL RESCUE PACKAGE FOR THE METALS ENGINEERING AND TRADING GROUP BUT THE PLAN WAS IN JEOPARDY AS A HANDFUL OF HOLDOUTS DEMANDED REVISIONS BEFORE GIVING APPROVAL THE RESPONSES ARE TO BE ASSESSED BY A STEERING COMMITTEE OF LEADING BANK CREDITORS THIS MORNING ACCORDING TO A SPOKESMAN FOR DEUTSCHE BANK A. G. WHICH HEADS THE PANEL AN ANNOUNCEMENT OF THE OUTCOME IS EXPECTED LATER TODAY QUOTE THERE WILL BE NO MORE NEGOTIATIONS IT IS A PACKAGE THAT MUST BE TAKEN AS A WHOLE SAID A DEUTSCHE BANK SPOKESMAN IF SOME BANKS REJECT THE PLAN THEN THEY MUST LIVE WITH THE STIGMA OF BANKRUPTING METALLGESELLSCHAFT HE SAID THE COMPANY'S RESTRUCTURING PLAN ASKS BANKS TO CONVERT ONE POINT THREE BILLION MARKS IN CREDITS INTO CONVERTIBLE PROFIT SHARING EQUITY AND EXTEND A NEW SEVEN HUNDRED MILLION MARK CREDIT LINE THE PLAN ALSO CALLS FOR A NEW SHARE OFFERING VALUED AT ONE POINT FOUR BILLION MARKS METALLGESELLSCHAFT HAS DECLARED THAT IT WOULD ENTER LIQUIDATION PROCEEDINGS IF THE PLAN DIDN'T GO THROUGH THE COMPANY'S BIG SHAREHOLDERS HAVE CONDITIONED THEIR PARTICIPATION IN THE NEW SHARE OFFERING ON THE BANKS' ACCEPTING THE CREDIT RESTRUCTURING PART OF THE PACKAGE THE LAST MINUTE UNCERTAINTY ERASED MUCH OF THE RECENT GAINS FOR METALLGESELLSCHAFT'S BATTERED STOCK PRICE ON THE FRANKFURT STOCK EXCHANGE WHERE IT FELL TEN MARKS TO TWO HUNDRED TWENTY SIX MARKS YESTERDAY THE MOST OUTSPOKEN OPPONENT OF THE PLAN NORDDEUTSCHE LANDESBANK OF HANOVER ONE OF THE COMPANY'S BIG GERMAN CREDITORS SAID IT WOULD REJECT THE PLAN UNLESS DEUTSCHE BANK AND DRESDNER BANK A. G. ASSUMED A BIGGER SHARE OF THE BURDEN AMONG OTHER DEMANDS THE FEDERAL ENERGY REGULATORY COMMISSION WITHDREW ITS EARLIER CONDITIONAL APPROVAL OF A PLANNED MERGER BETWEEN P. S. I. RESOURCES INCORPORATED AND CINCINNATI GAS AND ELECTRIC COMPANY BUT LEFT THE DOOR OPEN FOR THE COMBINATION TO PROCEED THE TWO MIDWESTERN CONCERNS ARE SEEKING TO FORM A NEW COMPANY TO BE KNOWN AS CINERGY CORPORATION WHICH WOULD RANK AS THE NATION'S THIRTEENTH LARGEST INVESTOR OWNED UTILITY THE PLAN TO COMPLETE THE MERGER BY MIDYEAR COULD NOW BE PUSHED BACK INTO THE THIRD QUARTER THEY SAID YESTERDAY IN AUGUST F. E. R. C. GRANTED CONDITIONAL APPROVAL OF THE TWO COMPANIES' MERGER BUT SINCE THEN A NUMBER OF SO CALLED INTERVENORS INCLUDING STATE REGULATORY AGENCIES FROM OHIO AND KENTUCKY AND CERTAIN BIG ENERGY CUSTOMERS FILED FOR RECONSIDERATION OF VARIOUS ASPECTS OF F. E. R. C.'S AUGUST ORDER THEY CONTEND AMONG OTHER THINGS THAT STATE COMMISSIONS AS WELL AS F. E. R. C. SHOULD BE ALLOWED TO RULE ON THE PLANNED INTERSTATE MERGER F. E. R. C. SIGNED OFF ON THE MERGER WITH THE UNDERSTANDING ENCOURAGED THE COMMISSION SAYS BY P. S. I. AND CG AND E. STATEMENTS THAT STATE REGULATORS WOULD BE GRANTED SUCH AUTHORITY BUT P. S. I. PLAINFIELD INDIANA AND CG AND E. CINCINNATI HAVE SUBSEQUENTLY CONTENDED THAT STATE CLEARANCE ISN'T REQUIRED BECAUSE OF AMENDMENTS MADE TO THEIR ORIGINAL FILING F. E. R. C. YESTERDAY SAID IT WAS QUOTE DEEPLY CONCERNED ABOUT THE STATE OF THE RECORD ON THE ISSUE OF WHETHER THIS MERGER WILL IMPAIR EFFECTIVE REGULATION QUOTE AT A COMMISSION MEETING YESTERDAY ELIZABETH ANNE MOLER CHAIRMAN OF THE COMMISSION SAID SHE WAS DEEPLY TROUBLED BY REPRESENTATIONS FROM THE TWO COMPANIES IT ORDERED THE INTERVENORS AND THE UTILITIES TO UNDERTAKE SETTLEMENT TALKS UNDER THE GUIDANCE OF AN ADMINISTRATIVE LAW JUDGE THE COMMISSION'S TRIAL STAFF WILL ALSO BE A PARTY TO THE NEGOTIATIONS IF A SETTLEMENT HASN'T BEEN NEGOTIATED WITHIN SIXTY DAYS OF THE FIRST CONFERENCE F. E. R. C. SAID IT INTENDS TO ISSUE A FURTHER ORDER SETTING ISSUES FOR A POSSIBLE HEARING JAMES E. ROGERS P. S. I.'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID WE HAVE MADE SIGNIFICANT PROGRESS TOWARD RESOLUTION OF SEVERAL CRITICAL ISSUES THROUGH DIRECT NEGOTIATION WITH STATE REGULATORY COMMISSIONS AND ARE CONFIDENT OF OUR ABILITY TO CONCLUDE A SETTLEMENT SUCCESSFULLY HE NOTED THAT IN NOVEMBER P. S. I. AND CG AND E. HAD ACTUALLY ASKED THE F. E. R. C. TO ORDER A SETTLEMENT CONFERENCE BUT EARLIER THIS WEEK ASKED F. E. R. C. TO SET ASIDE THAT REQUEST IN LIGHT OF PROGRESS MADE THROUGH DIRECT DISCUSSIONS F. E. R. C. SAID THE COMMISSIONERS HADN'T ACTED ON THE MERITS OF THE ISSUES RAISED BY THE INTERVENORS BUT ONLY SEEKS TO PRECLUDE THE MERGER FROM GOING AHEAD PENDING SETTLEMENT AND COMMISSION REVIEW OF THE SETTLEMENT UNDER TERMS OF THE MERGER PACT WHICH IS PEGGED TO THE PRICE OF CG AND E. SHARES P. S. I. HOLDERS WOULD RECEIVE CINERGY STOCK WITH AN INDICATED VALUE OF TWENTY SEVEN DOLLARS AND THIRTY SEVEN CENTS OR A TOTAL OF ONE POINT FIVE SIX BILLION DOLLARS THE CLINTON ADMINISTRATION AS PART OF PRESIDENT CLINTON'S MOSCOW SUMMIT WITH RUSSIAN PRESIDENT BORIS YELTSIN PLANS TO PRESS RUSSIA TO LIMIT ITS EXPORTS OF ALUMINUM TRADE NEGOTIATORS FROM THE U. S. RUSSIA AND EUROPE HAVE HAGGLED FOR MONTHS OVER CHARGES THAT RUSSIAN COMPANIES ARE QUOTE DUMPING QUOTE ALUMINUM IN THE WORLD MARKETPLACE AT UNFAIRLY LOW PRICES THIS TRADE DISPUTE IS BEING RAISED AT THE SUMMIT LEVEL PARTLY BECAUSE ALUMINUM HAS BECOME A HUGE RUSSIAN EXPORT AND THE SOURCE OF HARD CURRENCY RUSSIAN ALUMINUM EXPORTS OF ABOUT ONE POINT SIX MILLION METRIC TONS LAST YEAR WERE MORE THAN SIX TIMES THE NINETEEN EIGHTY NINE LEVEL CRITICS OF THE MOVE CONTEND THAT TWISTING RUSSIA'S ARM TO ACCEPT EXPORT RESTRICTIONS WOULD SEND THE WRONG MESSAGE THAT GOVERNMENT CONTROL AND NOT FREE MARKET SHOULD GUIDE ECONOMIC POLICY IN A BRIEFING WITH REPORTERS U. S. TRADE REPRESENTATIVE MICKEY KANTOR SAID THE ADMINISTRATION IS CONSIDERING SO CALLED VOLUNTARY EXPORT RESTRAINT AGREEMENTS AS ONE INSTRUMENT TO CURB THE FLOOD OF RUSSIAN ALUMINUM INTO THE WORLD MARKET UNDER SUCH ARRANGEMENTS RUSSIA WOULD IMPOSE MAXIMUM EXPORT QUOTAS ON ITS ALUMINUM PRODUCERS U. S. INDUSTRY OFFICIALS ARE HOPING FOR AN ANNUAL LIMIT OF ABOUT FIVE HUNDRED THOUSAND METRIC TONS WITH ANNUAL INCREASES HELD TO TEN PERCENT IN SUCCEEDING YEARS PRIVATELY A U. S. OFFICIAL SAID THE ADMINISTRATION HAS OPTED TO PRESS FOR THE EXPORT RESTRAINT AGREEMENTS BECAUSE IT WAS DECIDED THIS WAS THE APPROACH THAT HAD THE GREATEST POSSIBILITY OF ACHIEVING THAT FLEXIBLE BALANCE BETWEEN RUSSIA'S NEED TO EARN HARD CURRENCY AND THE EQUAL RIGHT OF U. S. COMPANIES NOT TO BEAR ALL THE BURDEN OF COMPETING WITH THE FLOOD OF LOW PRICED RUSSIAN ALUMINUM EXPORTS RUSSIA AND OTHER MEMBERS OF THE FORMER SOVIET UNION HAVE RELIED ON ALUMINUM EXPORTS AS A SOURCE OF REVENUE SINCE THE COLLAPSE OF THE SOVIET EMPIRE BY SOME ESTIMATES ALUMINUM HAS BECOME RUSSIA'S BIGGEST EXPORT BEHIND ONLY OIL BECAUSE MUCH OF THE ALUMINUM PREVIOUSLY DIVERTED TOWARD DEFENSE WORK IS SOLD OVERSEAS MR. KANTOR SAID THE U. S. WILL RAISE THE ISSUE DURING MR. CLINTON'S STAY IN MOSCOW ALTHOUGH A RESOLUTION OF THE DISPUTE ISN'T EXPECTED UNTIL AFTER THE CLINTON YELTSIN MEETING WHEN MULTILATERAL ALUMINUM NEGOTIATIONS RESUME IT'S A DIFFICULT AND SERIOUS SUBJECT MR. KANTOR SAID RUSSIAN EXPORTS TO THE REST OF THE WORLD INCREASED DRAMATICALLY ALUMINUM PRICES HAVE DROPPED LIKE A ROCK FROM ONE DOLLAR A POUND TO FORTY SEVEN CENTS A POUND WE'RE TRYING TO FASHION A COMMON SOLUTION CRITICS OF EXPORT RESTRAINTS CONTEND THAT SUCH RESTRICTIONS REPRESENT A TYPE OF PROTECTIONISM THAT WOULD CONTRADICT THE CLINTON ADMINISTRATION'S ATTEMPTS TO PROMOTE A FREE MARKET IN RUSSIA MOREOVER THEY ASSERT THAT SUCH RESTRICTIONS WOULD RAISE COSTS FOR ALUMINUM USERS SUCH AS AUTO COMPANIES MANY U. S. AND EUROPEAN ALUMINUM COMPANIES MEANWHILE ARGUE THAT SUCH RESTRAINTS ARE NECESSARY TO AVERT PRODUCTION CLOSEDOWNS AND JOB LOSSES IN THEIR STRUGGLING INDUSTRY LAST MONTH FOR EXAMPLE THE EUROPEAN UNION EXTENDED ITS QUOTAS ON ALUMINUM IMPORTS FROM THE FORMER SOVIET REPUBLICS TO FEBRUARY TWENTY EIGHTH THOSE QUOTAS WERE ORIGINALLY IMPOSED IN AUGUST THE DISPUTE HAS ESCALATED TO THE CURRENT STAGE FOLLOWING FAILED MULTILATERAL NEGOTIATIONS BY THE U. S. RUSSIA AND THE EUROPEAN UNION PREVIOUSLY KNOWN AS THE EUROPEAN COMMUNITY THE U. S. AND E. U. ARE SCHEDULED TO DISCUSS THE TRADE DISPUTE AGAIN NEXT TUESDAY AND WEDNESDAY IN BRUSSELS AT THE TRADE BUREAUCRAT LEVEL U. S. AND E. U. OFFICIALS HAVE BEEN TRYING TO PERSUADE RUSSIA TO ACCEPT A MULTIPRONGED SOLUTION INCLUDING AN IMMEDIATE PRODUCTION CUT A RESTRUCTURING OF THE RUSSIAN ALUMINUM INDUSTRY AND A STRATEGY FOR BOOSTING RUSSIAN DOMESTIC DEMAND FOR ALUMINUM PRODUCTS PAUL O'NEILL CHAIRMAN OF ALUMINUM COMPANY OF AMERICA THE WORLD'S BIGGEST ALUMINUM MAKER SAID MR. KANTOR'S STATEMENT IS QUOTE GOOD NEWS QUOTE THAT INDICATES QUOTE THE PRESIDENT IS PERSONALLY KNOWLEDGEABLE AND INVOLVED QUOTE IF THE BRUSSELS TALKS FAIL MR. O'NEILL SAID U. S. ALUMINUM PRODUCERS ARE POISED TO FILE ANTIDUMPING COMPLAINTS TO CLOSE THE BORDERS OF THE UNITED STATES TO ALUMINUM AT BELOW FULL COST PRICES LOW ALUMINUM PRICES A RESULT OF THE WORLD WIDE GLUT ARE SOCKING PRODUCERS ACROSS THE NATION INCLUDING REYNOLDS METALS COMPANY ALUMAX INCORPORATED KAISER ALUMINUM CORPORATION AND SOUTHWIRE COMPANY STEWART SPECTOR AN INDUSTRY ANALYST WHO WRITES THE SPECTOR REPORT FIGURES THE WORLD'S PRODUCERS WILL ENTER INTO WHAT HE CALLS A VOLUNTARY PRODUCTION CUTBACK AGREEMENT THAT WOULD INCLUDE THE TYPE OF EXPORT LIMITS THE CLINTON ADMINISTRATION IS SEEKING PRODUCERS IN THE FORMER SOVIET REPUBLICS WOULD CUT PRODUCTION AND TEMPORARILY LIMIT EXPORTS TO THE WEST AND PRODUCERS ELSEWHERE WOULD CUT CAPACITY ON A VOLUNTARY INDIVIDUAL BASIS IN EXCHANGE WESTERN ALUMINUM MAKERS WOULD HELP RESTRUCTURE AND MODERNIZE THE INDUSTRY IN THE FORMER SOVIET REPUBLICS NEWS CORPORATION'S COMPUTER ON LINE SERVICE SAID IT PLANS TO ALLOW VIEWERS OF THE FOX INCORPORATED BASIC CABLE NETWORK TO GIVE THE TELEVISION PROGRAMMERS A PIECE OF THEIR MIND THE SERVICE DELPHI INTERNET SERVICES CORPORATION SAID THAT EXECUTIVES OF THE NEW F. X. CHANNEL STARTING JANUARY SEVENTEENTH WILL BE AVAILABLE FOR LIVE ON LINE DISCUSSIONS WITH VIEWERS ON A REGULAR BASIS DELPHI IS AMONG THE HALF DOZEN LARGEST ON LINE SERVICES PERMITTING COMPUTER USERS TO COMMUNICATE THROUGH THE INTERNET NETWORK AND OFFERING A VARIETY OF INFORMATION SERVICES MEDIA COMPANIES HAVE BEEN TEAMING UP WITH COMPUTER ON LINE SERVICES TO PROVIDE SUBSCRIBERS ADDITIONAL INFORMATION WHILE ALLOWING THEM TO GIVE FEEDBACK TO THE MEDIA COMPANIES NICKELODEON WHICH INTRODUCED A SIMILAR ON LINE FORUM LAST MARCH ON COMPUSERVE AN H. AND R. BLOCK INCORPORATED UNIT APPEARS TO HAVE BEEN THE FIRST NETWORK TO FORMALIZE AN ON LINE FORUM SINCE THEN HUNDREDS OF MAGAZINES AND NEWSPAPERS WHICH PUBLISH ELECTRONIC EDITIONS HAVE USED ON LINE FORUMS FOR MARKET RESEARCH ANNE SWEENEY CHAIRMAN AND CHIEF EXECUTIVE OF F. X. SAID THE SERVICE IS QUOTE GIVING PEOPLE A VOICE IN WHAT THEY SEE ON T. V. QUOTE GRAIN FUTURES PRICES ARE EXPECTED TO RALLY SHARPLY TODAY IN RESPONSE TO THE U. S. AGRICULTURE DEPARTMENT'S BLEAKEST ESTIMATE YET OF THE FLOOD RAVAGED NINETEEN NINETY THREE TO NINETY FOUR U. S. GRAIN CROP AT THE CHICAGO BOARD OF TRADE EARLY ESTIMATES WERE THAT CORN FUTURES PRICES WOULD RISE THREE TO FIVE CENTS A BUSHEL SOYBEAN PRICES WOULD CLIMB SEVEN TO TWELVE CENTS A BUSHEL AND WHEAT PRICES WOULD BE UP TWO TO FOUR CENTS A BUSHEL THE U. S. D. A. PEGGED THE U. S. CORN CROP AT SIX POINT THREE FOUR BILLION BUSHELS DOWN ONE HUNDRED SIXTY FOUR MILLION BUSHELS FROM THE DEPARTMENT'S NOVEMBER ESTIMATE OF SIX POINT FIVE BILLION THE U. S. D. A. SAID LOW TEST WEIGHTS OF CORN ESPECIALLY CORN GROWN IN THE WESTERN CORN BELT WERE TO BLAME FOR THE DECLINE THE NORMAL TEST WEIGHT FOR CORN IS ABOUT FIFTY SIX POUNDS PER BUSHEL HOWEVER THE SATURATION OF MIDWEST FARMLAND BY DRENCHING RAINS THROUGHOUT THE GROWING SEASON LAST SUMMER HAMPERED DEVELOPMENT OF STARCH INSIDE CORN KERNELS AS A RESULT THE TEST WEIGHT FOR MUCH OF THE SUMMER'S CORN CROP WAS UNUSUALLY LOW FORTY SIX POUNDS TO FIFTY TWO POUNDS A BUSHEL FOR SOYBEANS THE U. S. D. A. ESTIMATED THE CROP AT ONE POINT EIGHT BILLION BUSHELS DOWN ABOUT TWENTY FIVE MILLION BUSHELS FROM THE NOVEMBER ESTIMATE OF ONE POINT EIGHT THREE BILLION BUSHELS THE FLOODING ALSO HAMPERED DEVELOPMENT OF SOYBEAN PLANTS IN THE WESTERN CORN BELT AND UPPER MIDWEST RESULTING IN SMALLER SOYBEAN SIZE ON PLANTS FOR WHEAT THE DEPARTMENT PEGGED THE CROP AT TWO POINT FOUR BILLION BUSHELS DOWN ABOUT TWENTY MILLION BUSHELS FROM THE NOVEMBER ESTIMATE OF TWO POINT FOUR TWO BILLION BUSHELS ANOTHER SIGNIFICANT PART OF THE U. S. D. A. REPORT WAS THE DEPARTMENT'S ESTIMATE OF FEED USAGE OF U. S. GRAIN DURING THE SEPTEMBER THROUGH NOVEMBER PERIOD IN NINETEEN NINETY THREE BECAUSE OF THE SCARCITY OF HIGH QUALITY U. S. GRAIN ANALYSTS SAY FARMERS ULTIMATELY MUST DIMINISH THEIR USE OF GRAIN AS FEED FOR LIVESTOCK TO ENSURE THAT ENOUGH GRAIN IS LEFT FOR HUMAN CONSUMPTION AND PRICES MUST RISE TO LEVELS HIGH ENOUGH THAT FARMERS CAN'T AFFORD TO USE GRAIN AS FEED THE U. S. D. A. ESTIMATED RESIDUAL USE OF CORN AS FEED AT ONE POINT SEVEN TWO BILLION BUSHELS DURING THE SEPTEMBER THROUGH NOVEMBER PERIOD DOWN ONE HUNDRED TWO MILLION BUSHELS FROM NINETEEN NINETY TWO'S RECORD USAGE OF ONE POINT EIGHT THREE BILLION BUSHELS YET ALTHOUGH FEED USAGE IS DOWN A BIT IT HASN'T FALLEN FAR ENOUGH TO ENSURE ABUNDANCE OF GRAIN FOR HUMAN USE ANALYSTS SAID QUOTE THE REPORT SHOWS THAT PRICE STILL HAS NOT DONE ITS JOB OF CURTAILING DOMESTIC FEED USE QUOTE SAID DANIEL W. BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE COMPANY CHICAGO WE MUST REACH HIGHER PRICES TO START THE RATIONING PROCESS THE U. S. D. A. PEGGED CORN ENDING STOCKS OR THE AMOUNT OF CORN IT EXPECTS TO BE ON HAND THIS SUMMER AT EIGHT HUNDRED TWO MILLION BUSHELS THE LOWEST LEVEL SINCE THE MID NINETEEN SEVENTIES IT FORECAST SOYBEAN ENDING STOCKS AT ONE HUNDRED FIFTY MILLION BUSHELS ALSO THE LOWEST SINCE THE MID SEVENTIES ENERGY DESPITE A BULLISH INDUSTRY REPORT ON U. S. PETROLEUM INVENTORIES LATE TUESDAY FEBRUARY CRUDE OIL FUTURES PRICES FELL FIFTY TWO CENTS A BARREL TO FOURTEEN DOLLARS AND THIRTY THREE CENTS IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE MUCH OF THE MARKET OPTIMISM TO BE FOUND IN THE AMERICAN PETROLEUM INSTITUTE STATISTICS ALREADY HAD BEEN FACTORED INTO PRICES SOME TRADERS SAID THE REST WAS OVERSHADOWED BY A REPORT FROM THE INTERNATIONAL ENERGY AGENCY IN PARIS SAYING THAT WORLD OIL DEMAND CONTINUES TO BE WEAK AND WILL LIKELY REMAIN SO THROUGH THE FIRST QUARTER THE I. E. A. CUT ITS FORECAST FOR WORLD DEMAND FOR CRUDE OIL BY THREE HUNDRED THOUSAND BARRELS A DAY TO SIXTY EIGHT POINT ONE MILLION BARRELS FOR THE FIRST QUARTER AT THE SAME TIME SOME MARKET PLAYERS CONTINUE TO BE NERVOUS ABOUT THE PRECARIOUS FINANCIAL SITUATION SURROUNDING METALLGESELLSCHAFT A. G. THE GERMAN COMPANY WHOSE M. G. CORPORATION IS A BIG FUTURES MARKET PARTICIPANT MEANWHILE NATURAL GAS FUTURES PRICES CONTINUED TO ADVANCE BUOYED BY WEATHER RELATED BUYING AS YET ANOTHER WAVE OF WINTER STORMS HIT THE EASTERN PART OF THE U. S. ORANGE JUICE FUTURES PRICES PLUMMETED AFTER WEATHER FORECASTS PREDICTED WARMER THAN EXPECTED TEMPERATURES THIS WEEKEND IN FLORIDA AT NEW YORK'S COTTON EXCHANGE ORANGE JUICE FOR MARCH DELIVERY WAS DOWN FOUR DOLLARS AND TEN CENTS A POUND TO ONE HUNDRED TEN DOLLARS AND SEVENTY FIVE CENTS A POUND ON TUESDAY FORECASTERS HAD PREDICTED A COLD WAVE IN FLORIDA WITH TEMPERATURES FALLING AS LOW AS TWENTY NINE DEGREES BUT MOST FORECASTS WERE REVISED TO SHOW A LOW OF THIRTY THREE DEGREES TRADERS REACTED TO DIMINISHED FROST FEARS BY BIDDING DOWN ORANGE JUICE FUTURES PRICES A LOW OF TWENTY NINE DEGREES WOULDN'T HAVE BEEN LOW ENOUGH TO CAUSE DAMAGE TO THE FLORIDA CROP ANYWAY SAID JUDITH GANES SENIOR ANALYST FOR MERRILL LYNCH IT'S JUST THAT PSYCHOLOGICALLY WE'RE NOW THAT MUCH FARTHER AWAY FROM A FROST LATE YESTERDAY THE AGRICULTURE DEPARTMENT RAISED ITS ESTIMATE OF THE FLORIDA ORANGE CROP TO ONE HUNDRED SEVENTY SIX MILLION BOXES FROM ONE HUNDRED SEVENTY TWO MILLION BUT THAT PROSPECTIVE INCREASE IN JUICE SUPPLIES WAS MORE THAN OFFSET BY A DECREASE IN BRAZIL'S OUTLOOK FOR ITS NINETEEN NINETY FOUR TO NINETY FIVE ORANGE CROP BRAZIL ESTIMATED THAT BECAUSE OF BLOSSOM BLIGHT AND HOT WEATHER ITS CROP COULD BE REDUCED TO TWO HUNDRED FORTY MILLION BOXES FROM TWO HUNDRED EIGHTY TWO MILLION IF THE BRAZILIAN CROP IS IN FACT THAT SMALL I THINK THIS MARKET IS GOING TO TURN AROUND AND REMAIN IN AN UPTREND THROUGHOUT SPRING MS. GANES SAID STOCK PRICES FINISHED MIXED AS A SURGING BOND MARKET EASED THE SELLING PRESSURE FROM PROFIT TAKERS ALTHOUGH MANY ANALYSTS SAY THE STOCK MARKET IS DUE FOR A GIVEBACK AFTER ITS SHARP GAINS LAST WEEK AND MONDAY STRONG ACTION IN BONDS PUT THAT SELLING ON HOLD THE DOW JONES INDUSTRIAL AVERAGE HAD SET FOUR STRAIGHT RECORDS BEFORE SLIDING TUESDAY THE DOW JONES INDUSTRIAL AVERAGE FINISHED WITH A SLIM LOSS OF ONE POINT SIX EIGHT TO THREE THOUSAND EIGHT HUNDRED FORTY EIGHT POINT SIX THREE BROAD BASED INDEXES THAT TRACK MOSTLY NEW YORK STOCK EXCHANGE ISSUES INCHED HIGHER WHILE GAINERS ON THE EXCHANGE LED LOSERS ONE THOUSAND ONE HUNDRED FORTY SIX TO NINE HUNDRED FIFTY SIX TRADING WAS ACTIVE WITH VOLUME ON THE BIG BOARD ABOVE THE HEAVY THREE HUNDRED MILLION SHARE MARK FOR A SEVENTH STRAIGHT SESSION YESTERDAY THREE HUNDRED NINE MILLION EIGHT HUNDRED NINETY THREE THOUSAND TWO HUNDRED NINETY SHARES CHANGED HANDS JUST ABOVE TUESDAY'S THREE HUNDRED FOUR MILLION SIX HUNDRED FOURTEEN THOUSAND EIGHT HUNDRED SEVENTY THE ACTION WAS STRONGER IN THE NASDAQ STOCK MARKET AIDED IN PART BY TECHNOLOGY STOCKS ESPECIALLY SEMICONDUCTOR ISSUES THE NASDAQ COMPOSITE INDEX TOPPED ITS RECORD CLOSE DURING THE DAY BUT FINISHED BELOW THAT MARK UP ONE POINT THREE FIVE TO SEVEN HUNDRED EIGHTY SIX POINT EIGHT SEVEN ITS RECORD OF SEVEN HUNDRED EIGHTY SEVEN POINT FOUR TWO HAS STOOD SINCE OCTOBER FIFTEENTH THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX INCHED UP ZERO POINT ZERO FOUR TO FOUR HUNDRED SEVENTY FOUR POINT ONE SEVEN THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED ZERO POINT ONE ONE TO TWO HUNDRED SIXTY TWO POINT THREE SEVEN AND THE DOW JONES EQUITY MARKET INDEX INCREASED ZERO POINT ONE NINE TO FOUR HUNDRED FORTY EIGHT POINT NINE ONE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE ZERO POINT FIVE ZERO TO FOUR HUNDRED SEVENTY NINE POINT EIGHT SEVEN IT HAS HAD ONE LOSING SESSION SINCE DECEMBER TWENTY FIRST DESPITE THE RELATIVE STABILITY IN PRICES EDWARD NICOSKI MARKET ANALYST AT PIPER JAFFRAY SAID HE BELIEVES MORE PROFIT TAKING IS LIKELY OVER THE NEXT SEVERAL SESSIONS QUOTE BLUE CHIPS HAVE HAD A PRETTY GOOD RUN QUOTE WITH JUST A MODEST AMOUNT OF PULLBACK HE SAID THE DOW JONES INDUSTRIALS EASED JUST FIFTEEN POINT TWO OH TUESDAY AND ARE UP NEARLY NINETY FIVE POINTS IN THE YEAR TO DATE PHIL RETTEW A MARKET SPECIALIST AT MERRILL LYNCH AND COMPANY HOWEVER DOESN'T THINK A MAJOR RETREAT IS LIKELY OVER THE NEAR TERM IT WOULD BE UNUSUAL FOR A MAJOR SLIDE TO DEVELOP IN THE IMMEDIATE AFTERMATH OF A STRONG RALLY HE SAID SEMICONDUCTOR STOCKS FOUGHT THE DOWNWARD TREND AIDED BY AN UPBEAT REPORT ON INDUSTRYWIDE ORDERS A TRADE GROUP SAID ITS SO CALLED BOOK TO BILL RATIO CLIMBED TO ONE POINT OH FOUR LAST MONTH UP FROM ZERO POINT NINE NINE IN NOVEMBER AND ABOVE THE ONE POINT OH ONE AVERAGE FORECAST OF ANALYSTS SURVEYED BY DOW JONES NEWS SERVICE ON THE NASDAQ STOCK MARKET INTEL ROSE ONE AND FIVE EIGHTHS TO SIXTY EIGHT AND THREE EIGHTHS AND APPLIED MATERIALS GAINED ONE AND ONE HALF TO FORTY ONE AND ONE HALF ON THE BIG BOARD MOTOROLA ADVANCED TWO AND ONE HALF TO NINETY FOUR AND THREE QUARTERS TEXAS INSTRUMENTS RALLIED THREE AND ONE QUARTER TO SEVENTY AND ONE QUARTER AND MICRON TECHNOLOGY ADDED ONE AND ONE EIGHTH TO FIFTY FOUR AND ONE EIGHTH AMERICAN DEPOSITARY RECEIPTS OF ALCATEL ALSTHOM SLUMPED TWO AND SEVEN EIGHTHS OR NINE POINT NINE PERCENT TO TWENTY SIX AND ONE QUARTER AFTER AN OFFICER OF THE FRENCH TECHNOLOGY CONCERN ESTIMATED NINETEEN NINETY THREE EARNINGS WERE FLAT AND FORECAST AN EARNINGS DECLINE THIS YEAR LAST YEAR'S PROFIT WAS ABOUT SEVEN BILLION FRANCS THE PREDICTIONS WERE MADE IN AN INTERVIEW IN THE FRENCH DAILY LES ECHOS NEWBRIDGE NETWORKS CLIMBED ONE AND THREE QUARTERS TO SIXTY FIVE AND THREE QUARTERS ON NASDAQ AFTER IT AND M. C. I. COMMUNICATIONS AGREED TO JOINTLY DEVELOP NETWORKING PRODUCTS AND SERVICES FOR DOMESTIC AND INTERNATIONAL CORPORATIONS M. C. I. SLIPPED ONE EIGHTH TO TWENTY FIVE AND SEVEN EIGHTHS ALSO ON NASDAQ BARNETT BANKS LOST ONE AND THREE EIGHTHS TO FORTY AND ONE QUARTER AFTER GOLDMAN SACHS AND COMPANY CUT ITS OPINION ON THE STOCK TO MARKET PERFORMER FROM BUY THE STOCK DROPPED ONE AND ONE EIGHTH TUESDAY FOLLOWING A SLIGHTLY LOWER THAN EXPECTED EARNINGS REPORT FROM THE JACKSONVILLE FLORIDA CONCERN KERR MCGEE DROPPED ONE AND FIVE EIGHTHS TO FORTY FIVE AND ONE QUARTER DEAN WITTER REYNOLDS ANALYST EUGENE NOWAK SLASHED HIS ESTIMATE OF THE COMPANY'S FOURTH QUARTER OPERATING PROFIT TO TWENTY CENTS A SHARE FROM A PREVIOUS FORECAST OF THIRTY CENTS HE SAID THE OKLAHOMA CITY OIL AND GAS CONCERN'S EXPLORATION COSTS HAVE BEEN HIGHER THAN HE HAD EXPECTED SENSORMATIC ELECTRONICS JUMPED TWO AND ONE EIGHTH TO THIRTY FIVE AND ONE EIGHTH THE DEERFIELD BEACH FLORIDA COMPANY SAID HOME DEPOT WILL INSTALL SENSORMATIC ULTRA MAX ANTISHOPLIFTING SYSTEMS IN ALL OF ITS STORES SHARES OF ATLANTA BASED HOME DEPOT ADDED THREE QUARTERS TO THIRTY NINE AND THREE EIGHTHS KOHL'S DROPPED TWO AND FIVE EIGHTHS TO FORTY FOUR AND THREE QUARTERS AFTER THE MENOMONEE FALLS WISCONSIN DEPARTMENT STORE COMPANY DISCLOSED PLANS FOR A PUBLIC OFFERING OF FOUR MILLION TWO HUNDRED FIFTY THOUSAND COMMON SHARES THE STOCK WILL BE SOLD BY CERTAIN EXISTING HOLDERS COPLEY PHARMACEUTICAL CLIMBED TWO AND ONE EIGHTH TO THIRTY AND FIVE EIGHTHS ON NASDAQ AFTER LEHMAN BROTHERS INITIATED COVERAGE OF THE STOCK THE CANTON MASSACHUSETTS CONCERN'S STOCK WAS RATED A BUY DETROIT DIESEL LOST ONE AND THREE EIGHTHS TO THIRTY TWO KEMPER SECURITIES BEGAN COVERAGE OF THE MAKER OF HEAVY DUTY ENGINES AND PARTS WITH A REDUCE OPINION THE SECURITIES FIRM SAID FUNDAMENTALS IN DETROIT DIESEL'S INDUSTRY AREN'T LIKELY TO ACCELERATE FROM THEIR ALREADY ROBUST LEVELS LUXOTTICA GROUP'S AMERICAN DEPOSITARY RECEIPTS ADDED SEVEN EIGHTHS TO TWENTY EIGHT AND THREE QUARTERS GOLDMAN SACHS ADDED THE ITALIAN MAKER OF EYEGLASS FRAMES TO ITS RECOMMENDED LIST SOFAMOR SLASH DANEK JUMPED ONE AND FIVE EIGHTHS TO THIRTY TWO AND THREE QUARTERS E. R. PICKARD CHIEF EXECUTIVE OFFICER OF THE MEMPHIS TENNESSEE MAKER OF SPINAL IMPLANT DEVICES SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES OF FOURTH QUARTER EARNINGS THE COMPANY EXPECTS TO HAVE ITS DISK SPACER IMPLANT IN CLINICAL TRIALS IN EUROPE THIS YEAR WATTS INDUSTRIES ENDED UNCHANGED AT FORTY NINE AND ONE HALF ON NASDAQ AFTER TRADING AS HIGH AS FIFTY AND THREE QUARTERS KENNETH J. MCAVOY CHIEF FINANCIAL OFFICER ESTIMATED THAT THE NORTH ANDOVER MASSACHUSETTS COMPANY'S EARNINGS ROSE TWELVE PERCENT TO FIFTEEN PERCENT IN THE SECOND QUARTER FROM A YEAR AGO EXCLUDING ONE TIME CHARGES THE PROSPECTS FOR EURO DISNEY S. C. A. WALT DISNEY COMPANY'S BELEAGUERED THEME PARK OUTSIDE THE FRENCH CAPITAL ARE STARTING TO LOOK A LOT BRIGHTER JUST AS ITS FINANCIAL PROBLEMS HAVE HIT A LOW POINT DISNEY OFFICIALS AND THE FRENCH LED CREDITOR BANKS ARE DUE LATER THIS MONTH TO START DISCUSSING A CRUCIAL FINANCIAL RESTRUCTURING OF THE RESORT WHICH HAS DEBTS OF ABOUT TWENTY FOUR BILLION FRENCH FRANCS FOUR BILLION DOLLARS AND EQUITY OF LESS THAN FOUR HUNDRED MILLION FRANCS WITHOUT SUBSTANTIAL FINANCIAL RELIEF WHICH ANALYSTS SAY WILL HAVE TO TOTAL AT LEAST TEN BILLION FRANCS IN DEBT WRITE OFFS AND FRESH FUNDING EURO DISNEY MAY HAVE TO CLOSE BUT IN A PARADOX THAT GIVES HOPE FOR ITS FUTURE THE PARK SEEMS TO BE SOLVING ITS PROBLEMS ON THE GROUND ANALYSTS AND TOUR OPERATORS IN EUROPE ARE APPLAUDING A REVAMPED MARKETING STRATEGY RECENTLY PUT IN PLACE BY EURO DISNEY'S NEW MANAGEMENT AND ATTENDANCE WHICH HAS LIVED UP TO EXPECTATIONS SINCE ITS APRIL NINETEEN NINETY TWO OPENING IS SEEN STRENGTHENING FURTHER QUOTE THE PARK IS MAKING MONEY IT'S THE UNDERLYING FINANCIAL STRUCTURE THAT IS UNTENABLE SAYS REBECCA WINNINGTON INGRAM AN ANALYST AT MORGAN STANLEY INTERNATIONAL IN LONDON WITH ITS NEW MARKETING STRATEGY EURO DISNEY HAS SOUGHT TO COUNTER CRITICISM FROM TOUR OPERATORS BY FOCUSING MORE CLEARLY ON SHORT TERM VISITORS STAYING FOR BETWEEN ONE AND THREE DAYS AND BY CUTTING PRICES SHARPLY MOREOVER THE OUTLOOK FOR NINETEEN NINETY FOUR IS BRIGHTER AS EUROPE PULLS ITS WAY OUT OF RECESSION TOUR OPERATORS EXPECT TWO BIG EVENTS IN THE COMING MONTHS WILL HELP TO BOOST ATTENDANCE AT THE PARK THE OPENING OF THE CHANNEL TUNNEL BETWEEN ENGLAND AND FRANCE AND THE COMPLETION OF A NEW HIGH SPEED TRAIN LINE THAT WILL CROSS FRANCE AND STOP AT A SPECIALLY CONSTRUCTED STATION BY THE RESORT IT NOW DOES WE FEEL REPRESENT GOOD VALUE FOR MONEY SAYS PETER SHANKS COMMERCIAL DIRECTOR OF THOMAS COOK A LARGE BRITISH TOUR OPERATOR MR. SHANKS SAYS EURO DISNEY OFFICIALS INITIALLY DIDN'T GET THE PRICING STRUCTURE RIGHT AND COMPOUNDED THEIR WOES BY BEING VERY ARROGANT THOMAS COOK SOLD ABOUT FIFTEEN THOUSAND EURO DISNEY HOLIDAYS IN NINETEEN NINETY THREE BUT MR. SHANKS EXPECTS TO SELL TWENTY FIVE THOUSAND HOLIDAYS TO THE RESORT THIS YEAR AND AS MANY AS FIFTY THOUSAND IN NINETEEN NINETY FIVE INDEED THE COMPANY SAYS IT ENJOYED A HECTIC CHRISTMAS HOLIDAY SEASON WITH ALL ITS HOTELS COMPLETELY FILLED ON NEW YEAR'S EVE COMPARED WITH AN AVERAGE OCCUPANCY AT THE RESORT'S SIX HOTELS LAST YEAR OF JUST FIFTY FIVE PERCENT ONE SIGN THAT EURO DISNEY COULD BE IN FOR A RECOVERY IS THE EMERGENCE OVER THE PAST FEW DAYS OF A SECONDARY MARKET FOR ITS DEBT MARKET PARTICIPANTS SAY AT LEAST ONE LARGE TRADE HAS BEEN TRANSACTED THE SALE OF ONE HUNDRED THIRTY MILLION FRANCS TWENTY TWO MILLION DOLLARS OF EURO DISNEY DEBT AT SIXTY PERCENT OF FACE VALUE BY BRITAIN'S MIDLAND BANK P. L. C. OTHER BANKS BOTH FRENCH AND NON FRENCH ARE ALSO ACTIVELY LOOKING FOR POTENTIAL BUYERS A MIDLAND BANK SPOKESMAN DECLINED TO CONFIRM WHAT HE DESCRIBED AS MARKET RUMOR AND SPECULATION BUT PEOPLE WHO SPECIALIZE IN TRADING THE DEBT OF DISTRESSED COMPANIES CONFIRMED THE TRANSACTION AND THE EMERGENCE OF A MARKET IN EURO DISNEY OVER THE PAST MONTH DEBT OF THE THEME PARK ITSELF IS BEING OFFERED AT BETWEEN FIFTY FIVE CENTS AND SIXTY CENTS ON THE DOLLAR THEY SAY WHILE THE SEPARATE DEBT OF THE TROUBLED HOTELS AT THE PARK IS BEING OFFERED AT BETWEEN TWENTY FIVE PERCENT AND FORTY PERCENT OF FACE VALUE JACK HERSCH RESEARCH DIRECTOR OF M. J. WHITMAN A NEW YORK TRADER OF DISTRESSED COMPANIES WOULDN'T DENY THAT EURO DISNEY DEBT HAS TRADED OR THAT HIS COMPANY WAS INVOLVED GARY KLESCH CHAIRMAN OF KLESCH AND COMPANY A LONDON BASED COMPANY ALSO ACTIVE IN SECONDARY DEBT MARKETS SAID THE MAIN BUYING INTEREST IS BEING SHOWN BY U. S. VULTURE FUNDS WHICH FEED OFF TROUBLED COMPANIES IT IS THE PROSPECT OF A SOUND COMPANY EMERGING FROM THE DEBT RESTRUCTURING TALKS THAT APPARENTLY ACCOUNTS FOR WHY THE VULTURE FUNDS ARE INTERESTED IN ACQUIRING EURO DISNEY DEBT THEY ARE SPECULATING THAT THE DEBT WILL EVENTUALLY BE WORTH SUBSTANTIALLY MORE THAN THEY ARE PAYING FOR IT ONE SOURCE SAYS THE PARK'S DEBT NOW ON SALE AT SIXTY PERCENT OF ITS FACE VALUE COULD BE WORTH EIGHTY CENTS TO THE DOLLAR IN THE FUTURE THERE IS STILL A LONG WAY TO GO BEFORE EURO DISNEY EMERGES WITH A MORE TENABLE FINANCIAL STRUCTURE HOWEVER CREDITOR BANKS LED BY BANQUE NATIONALE DE PARIS AND BANQUE INDOSUEZ COMMISSIONED A REPORT FROM ACCOUNTANTS K. P. M. G. LATE LAST YEAR ON BOTH EURO DISNEY'S FINANCIAL SITUATION AND ITS OPERATING PROSPECTS THE REPORT IS EXPECTED TO BE FINISHED WITHIN THE NEXT FEW DAYS AND IT WILL BE FOLLOWED BY THE FORMAL OPENING OF TALKS BETWEEN THE BANKS AND OFFICIALS FROM EURO DISNEY AND WALT DISNEY WHICH OWNS FORTY NINE PERCENT OF THE EUROPEAN COMPANY EURO DISNEY IN NOVEMBER REPORTED A STUNNING FIVE POINT THREE BILLION FRANC LOSS FOR ITS FIRST FISCAL YEAR ENDED SEPTEMBER THIRTIETH ALTHOUGH THAT HEADLINE GRABBING FIGURE INCLUDED A ONE TIME CHARGE OF THREE POINT SIX BILLION FRANCS USED TO WRITE OFF THE PARK'S START UP COSTS BUT IN ITS FINANCIAL REPORT IT ACKNOWLEDGES THAT IT QUOTE WILL REQUIRE SIGNIFICANT FUNDING QUOTE IN NINETEEN NINETY FOUR TO WARD OFF QUOTE A LIQUIDITY PROBLEM QUOTE DISNEY CHAIRMAN MICHAEL D. EISNER WHO HAS DESCRIBED EURO DISNEY AS OUR FIRST REAL FINANCIAL DISAPPOINTMENT IS PRESSING FOR THE RESTRUCTURING TO BE IN PLACE BY THE END OF MARCH BECAUSE OF THE COMPLEX FINANCING STRUCTURE OF THE PARK DISNEY'S FINANCIAL LOSSES IN THE EVENT OF BANKRUPTCY A WORST CASE SCENARIO THAT MR. EISNER HAS RAISED BUT ONE THAT MOST ANALYSTS DISMISS AS RHETORIC WOULD BE RELATIVELY LIGHT COMPARED WITH THE SHORTFALL SUFFERED BY THE BANKS AND THE FRENCH STATE WHICH GUARANTEED SOME LOANS THE BANKS SENSING THEY ARE AT A DISADVANTAGE IN THE COMING TALKS NONETHELESS SAY DISNEY ITSELF WOULD SUFFER A TREMENDOUS BLOW TO ITS STERLING REPUTATION IF THE EUROPEAN RESORT FAILED IT'S HARD TO SEE THAT THEY COULD ALLOW IT TO GO INTO BANKRUPTCY SAYS ONE FRENCH BANKER FAMILIAR WITH THE SITUATION WHO SAYS ALL SIDES WILL HAVE TO MAKE BIG SACRIFICES MS. WINNINGTON INGRAM OF MORGAN STANLEY CALCULATES THAT THE PARK COULD BREAK EVEN IN NINETEEN NINETY SIX TO NINETY SEVEN BUT ONLY IF FIVE BILLION FRANCS OF DEBT IS WRITTEN OFF AND THERE IS AN INJECTION OF FRESH CASH TOTALING ANOTHER FIVE BILLION FRANCS NONETHELESS I THINK IT'S VERY UNLIKELY THAT WALT DISNEY WOULD WALK AWAY FROM THIS SHE SAYS SOME WILL INEVITABLY LOSE HEAVILY ONE WAY OR ANOTHER EXISTING SHAREHOLDERS WILL BE DILUTED VERY SEVERELY CONTENDS NIGEL REED AN ANALYST AT PARIBAS CAPITAL MARKETS IN LONDON AND A LONGSTANDING SKEPTIC ABOUT THE PARK HE ADDS TO STAND ANY CHANCE AT ALL OF A RIGHTS ISSUE YOU MUST MAKE THE COMPANY LOOK AS THOUGH IT WILL BREAK EVEN IN NINETEEN NINETY FIVE IN A FRENCH STOCK MARKET THAT WAS DOWN OVERALL YESTERDAY EURO DISNEY SHARES WERE IN DEMAND GAINING TWO POINT FIVE PERCENT OR EIGHTY FIVE CENTIMES TO THIRTY FOUR POINT SEVEN OH FRANCS FIVE DOLLARS AND EIGHTY SIX CENTS IN AN APPEARANCE BEFORE THE NATIONAL PRESS CLUB LAST YEAR MICHAEL CRICHTON ANNOUNCED THAT THE AMERICAN NEWS MEDIA WERE PROBABLY DOOMED BY THEIR INCOMPETENCE WHICH CAUSED MANY A HACK TO LOOK FORWARD TO THE PUBLICATION OF THE MEGA AUTHOR'S NEXT BOOK MR. CRICHTON MAY BE A GIANT IN MODERN LITERARY CIRCLES SIX FEET NINE INCHES TALL WITH WRITING SKILLS TO RIVAL BARBARA CARTLAND'S BUT HE COULD STILL BE FED THROUGH THE OLD TREE CHIPPER EASILY ENOUGH THE EXPECTED BOOK HAS ARRIVED QUOTE DISCLOSURE QUOTE KNOPF THREE HUNDRED NINETY SEVEN PAGES TWENTY FOUR DOLLARS BUT ALAS A MERCIFUL MOOD PREVAILS THIS HAS LESS TO DO WITH THE BOOK'S LITERARY QUALITIES IT WILL BE THE VERY RARE PERSON WHO RE READS DISCLOSURE THAN WITH MR. CRICHTON'S GUTS WHICH HEAVE AND GROWL THROUGHOUT THIS FICTIONAL TREATMENT OF AN AUTHENTIC SEXUAL HARASSMENT CASE WHOSE PRINCIPLES WERE INTERVIEWED BY THE AUTHOR HAVING EARLIER UNLEASHED DINOSAURS IN JURASSIC PARK MR. CRICHTON NOW MAY HAVE UNLEASHED A SKUNK AT THE P. C. GARDEN PARTY IN AN AGE WHEN CATHARINE MACKINNON WARNS THAT ALL BUT EIGHT PERCENT OR SO OF AMERICAN FEMALES SUFFER SOME FORM OF HARASSMENT THE UNTOUCHED ELITE PRESUMABLY DIE EARLY OR SPEND THEIR ADULTHOODS IN THE BURN UNIT MR. CRICHTON OFFERS A DIFFERENT SCENARIO MEREDITH JOHNSON A WOMAN EXECUTIVE BROUGHT IN TO DIVERSIFY UPPER MANAGEMENT AT DIGICOM MAKES THE LUNGE FOR TOM SANDERS AN UNDERLING MALE AND FORMER LOVER WHOSE PROMOTION SHE GOT AFTER NEARLY SUCCUMBING TO THE SHE BEAST'S COME ON PERFORMED WITH THE SAME SUBTLETY SEEN AT MATING TIME IN THE MONKEY CAGE TOM SANDERS ZIPS UP WHICH UNLEASHES A PRE EMPTIVE CHARGE OF SEXUAL HARASSMENT BY THE SCORNED EXEC AND MUCH PREACHING ON THE PART OF THE AUTHOR IN FACT DISCLOSURE IS NOT SO MUCH A NOVEL AS A LONG SERMON WITH SEX SCENES TREACHERY AND BRIEF PERIODS OF SUSPENSE MOST OF WHICH TAKE PLACE IN DRIZZLY SEATTLE READERS MAY NOTE THE STUNNING CONTRAST BETWEEN THE SOPHISTICATED GIZMOS MADE AND MARKETED BY DIGICOM AND THE SOMEWHAT CRUDE CAST OF CHARACTERS WITH A FEW EXCEPTIONS WHO WORK THERE WHICH MAY NOT HAVE BEEN ONE OF THE AUTHOR'S INTENDED SUBTEXTS BUT THERE IS NO MISTAKING THE PURPOSEFULLY EVANGELISTIC NATURE OF DISCLOSURE THE WOMEN ON THE PRODUCTION LINE ARE DEMANDING THAT WE CLEAN OUT THE PINUPS IN THE MEN'S LOCKER ROOM THEY SAY IT'S OFFENSIVE TO THEM YOU ASK ME I THINK IT'S BULL LARSON SAID QUOTE BECAUSE WOMEN NEVER GO INTO THE MEN'S LOCKER ROOM QUOTE WE DON'T NEED ANY COMPLAINTS ABOUT BEING UNRESPONSIVE ON SEX ISSUES GET THE PINUPS OUT EVEN IF THE WOMEN HAVE PINUPS IN THEIR LOCKER ROOM JUST DO IT EDDIE THIS BRIEF PASSAGE SHOWS THAT MR. CRICHTON WILL REQUIRE HIS CHARACTERS TO TAKE REASONABLE STEPS TO ACCOMMODATE CURRENT STANDARDS OF HYPERSENSITIVITY AND UNFAIRNESS AND SOME READERS MAY INITIALLY WORRY THAT THE AUTHOR ISN'T UP TO FIGHTING THE GOOD FIGHT THESE WORRIES DON'T LAST LONG AFTER THE SCORNED BOSS FILES HER VENGEFUL CHARGE MR. CRICHTON SUPPLIES TOM WITH THE PERFECT LAWYER LOUISE FERNANDEZ WHO COVERS ALL THE BASES PLUS HOME PLATE ALONG WITH HER IMPECCABLE GENDER AND ETHNIC CREDENTIALS LOUISE DETESTS HARASSERS MALE AND FEMALE LOUISE IS A GIRL AFTER OUR OWN HEART AND OF COURSE MEREDITH'S SCALP AS THE TALL BLONDE AND HER CORPORATE PROTECTORS SOON DISCOVER ALONG THE WAY WE HEAR PLENTY OF VIRTUOUS SERMONETTES BUT PERHAPS THE MOST MAGISTERIAL MESSAGE IS DELIVERED BY MR. CRICHTON HIMSELF WHO IS NEVER FAR IN THE BACKGROUND BUT WHO LEAPS INTO THE FRAY TO DISCUSS THE STEPS MEN NOW TAKE TO DODGE THE FALSE ACCUSATION BULLET DON'T SMILE AT A CHILD ON THE STREET UNLESS YOU'RE WITH YOUR WIFE DON'T EVER TOUCH A STRANGE CHILD DON'T EVER BE ALONE WITH SOMEONE ELSE'S CHILD EVEN FOR A MOMENT IF A CHILD INVITES YOU INTO HIS OR HER ROOM DON'T GO UNLESS ANOTHER ADULT PREFERABLY A WOMAN IS ALSO PRESENT AT A PARTY DON'T LET A LITTLE GIRL SIT ON YOUR LAP IF SHE TRIES GENTLY PRESS HER ASIDE IF YOU EVER HAVE OCCASION TO SEE A NAKED GIRL OR BOY LOOK QUICKLY AWAY BETTER YET LEAVE QUOTE AND IT WAS PRUDENT TO BE CAREFUL AROUND YOUR OWN CHILDREN TOO BECAUSE IF YOUR MARRIAGE WENT SOUR YOUR WIFE MIGHT ACCUSE YOU QUOTE IF THESE WORDS WERE DELIVERED BEFORE A STADIUM AUDIENCE TENS OF THOUSANDS WOULD COME FORWARD TO TOUCH THE HEM OF MR. CRICHTON'S ROBE THE AUTHOR HAS REPORTS SAY BEEN HEAVILY COMPENSATED FOR DISCLOSURE THREE POINT FIVE MILLION DOLLARS OR SO WHICH DID NOT COMPEL HIM TO END ON A HAPPY NOTE THOUGH HE DOES PUT THE SHE BEAST OUT TO PASTURE LOUISE FERNANDEZ SUMS UP THE LARGER PREDICAMENT A HARASSMENT CLAIM IS A WEAPON BOB AND THERE ARE NO GOOD DEFENSES AGAINST IT ANYBODY CAN USE THE WEAPON AND LOTS OF PEOPLE HAVE IT'S GOING TO CONTINUE FOR A WHILE I THINK YET MR. CRICHTON HAS DONE HIS PART TO FIGHT THE MADNESS PROVING ONCE AGAIN THAT EVERY SO OFTEN A TALL WHITE GUY DOES SOMETHING RIGHT AT LEAST IF YOU PAY HIM ENOUGH MR. SHIFLETT IS DEPUTY EDITORIAL EDITOR OF THE ROCKY MOUNTAIN NEWS SMITH BARNEY SHEARSON INCORPORATED IN A RESHUFFLING OF ITS BIG BROKERAGE DIVISION USHERED IN A SERIES OF SENIOR LEVEL CHANGES THE TRAVELERS INCORPORATED UNIT WILL NAME JESSICA M. BIBLIOWICZ DAUGHTER OF TRAVELERS CHAIRMAN SANFORD I. WEILL AN EXECUTIVE VICE PRESIDENT HEADING SALES AND MARKETING FOR MUTUAL FUNDS ANNUITIES AND INSURANCE SMITH BARNEY EXECUTIVES SAY AMONG OTHER SHIFTS JAY MANDELBAUM A TRAVELERS EXECUTIVE WILL BECOME CHIEF ADMINISTRATIVE OFFICER OF THE BROKERAGE GROUP HIS PREDECESSOR RICHARD SCHIAVO WILL BECOME CHIEF FINANCIAL OFFICER UNDER MR. MANDELBAUM AND THE FIRM'S LEGAL COMPLIANCE AND REAL ESTATE GROUPS WILL NO LONGER REPORT DIRECTLY TO JOSEPH PLUMERI SMITH BARNEY SHEARSON'S PRESIDENT THE SHAKE UP IS THE MOST EXTENSIVE SINCE THE AUGUST MERGER BETWEEN SMITH BARNEY HARRIS UPHAM AND COMPANY AND THE BROKERAGE OPERATIONS OF SHEARSON LEHMAN BROTHERS INCORPORATED AS PREVIOUSLY REPORTED SMITH BARNEY SHEARSON IS IN THE PROCESS OF CUTTING AS MANY AS ONE THOUSAND FIVE HUNDRED EMPLOYEES AND STREAMLING ITS COMBINED OPERATIONS QUOTE THE CHANGES ARE A NATURAL OUTGROWTH OF A MERGER QUOTE JAMIE DIMON TRAVELERS PRESIDENT SAID IN AN INTERVIEW CONSOLIDATING THE REAL ESTATE LEGAL AND COMPLIANCE FUNCTIONS ARE PART OF A NORMAL PROCESS SOME WALL STREET EXECUTIVES SUGGESTED THAT THE MOVES PARTIALLY UNDERCUT MR. PLUMERI AN ASSERTION SHRUGGED OFF BY SENIOR SMITH BARNEY EXECUTIVES I'M NOT TEED OFF I'M NOT UPSET ALL OF THESE DECISIONS WERE MY DECISIONS MR. PLUMERI SAID IN AN INTERVIEW THE APPOINTMENT OF MS. BIBLIOWICZ THIRTY FOUR YEARS OLD IS EXPECTED TO BE ANNOUNCED AS EARLY AS TODAY SMITH BARNEY EXECUTIVES SAY THESE EXECUTIVES SAY THE FIRM PREVIOUSLY HAS TRIED TO HIRE MS. BIBLIOWICZ WHO FOR THE PAST TWO AND ONE HALF YEARS HEADED MUTUAL FUND SALES AND MARKETING FOR PRUDENTIAL SECURITIES INCORPORATED A UNIT OF PRUDENTIAL INSURANCE COMPANY OF AMERICA MS. BIBLIOWICZ WILL ASSUME THE DUTIES OF ROBERT LEO WHO RECENTLY JOINED MASSACHUSETTS FINANCIAL SERVICES AS DIRECTOR OF BROKER DEALER SALES BUT SHE WILL ALSO BE THE HEAD OF MARKETING AND SALES OF INSURANCES AND ANNUITIES AND MR. LEO'S SUCCESSOR WHO HASN'T YET BEEN NAMED WILL REPORT TO HER SMITH BARNEY EXECUTIVES SAID MS. BIBLIOWICZ ISN'T THE FIRST CHILD OF MR. WEILL TO ASSUME A SENIOR POST AT HIS FIRM HIS SON MARC IS SENIOR VICE PRESIDENT AND CHIEF INVESTMENT OFFICER AT TRAVELERS BUT HER POSITION IS AMONG THE MOST SIGNIFICANT AT THE FIRM WHICH MANAGES MORE THAN FIFTY FIVE BILLION DOLLARS IN PROPRIETARY MUTUAL FUNDS AND HAS MORE THAN FOURTEEN BILLION DOLLARS IN INSURANCE PREMIUMS COUNTING SALES THAT'S A BILLION DOLLARS OF BUSINESS SAYS MR. PLUMERI MS. BIBLIOWICZ IS VERY GOOD WITH BROKERS MR. PLUMERI SAYS ADDING DESPITE THE FACT OF WHO SHE IS THIS LADY IS TERRIFIC MR. WEILL FOR HIS PART SAYS THE FIRM QUOTE TRIED TO GET JESSICA HERE LOTS OF TIMES QUOTE IN AN INTERVIEW HE ADDED I THINK SHE DIDN'T WANT TO DO IT UNTIL SHE HAD ACCOMPLISHED ENOUGH SOMEPLACE ELSE YOUR DECEMBER SIXTEENTH PAGE ONE ARTICLE QUOTE TICKET TO NOWHERE JOB PROGRAMS FLUNK AT TRAINING BUT KEEP WASHINGTON AT WORK QUOTE QUOTED ME OUT OF CONTEXT IT DISTORTS THE STATEMENT I SUBMITTED AT THE REQUEST OF THE WALL STREET JOURNAL MY FULL STATEMENT WAS I HAVE TAKEN THE LEAD ON REFORMING THE U. S. D. A. EMPLOYMENT AND TRAINING PROGRAM AND I BELIEVE WE HAVE BEEN SUCCESSFUL EMPLOYMENT AND TRAINING IS DESIGNED TO HELP PEOPLE GET OFF FOOD STAMPS AND INTO THE WORKPLACE AND I WILL FIGHT ANY PROPOSALS THAT MAKE THAT MORE DIFFICULT FOR THE PEOPLE WE'RE TRYING TO HELP I HAVE NOT SEEN DETAILS OF THE ADMINISTRATION'S PROPOSAL TO MOVE THE U. S. D. A. PROGRAM TO H. H. S. SO I CANNOT DETERMINE AT THIS TIME WHETHER OR NOT IT IS A GOOD IDEA IF THE ADMINISTRATION CAN DEFINITIVELY SHOW THAT THIS CHANGE WILL HELP PEOPLE AND IMPROVE THE EMPLOYMENT AND TRAINING PROGRAM THEN I WILL GIVE IT SERIOUS CONSIDERATION THE ITALICIZED PASSAGE IS ALL THAT YOU EXCERPTED AND IT CLEARLY MISREPRESENTS THE TENOR OF MY REMARK ON NOVEMBER TWELFTH NINETEEN NINETY ONE I INTRODUCED THE FOOD STAMP EMPLOYMENT AND TRAINING REFORM ACT TO FIX MANY OF THE PROBLEMS HIGHLIGHTED IN YOUR ARTICLE I AGREED WITH THE ABT ASSOCIATES REPORT ON THE U. S. D. A. EMPLOYMENT AND TRAINING PROGRAM REFERRED TO IN YOUR ARTICLE AND MANDATED THAT THE PROGRAM BE REVAMPED THAT LEGISLATION WAS PASSED AND SIGNED INTO LAW BY PRESIDENT BUSH THE GORGEOUSLY ATMOSPHERIC FRENCH MOVIE QUOTE THE ACCOMPANIST QUOTE CERTAINLY HAS THE STUFF OF OPERATIC MELODRAMA SET IN OCCUPIED PARIS DURING WORLD WAR TWO ITS HEROINE IS IRENE BRICE A CLASSICAL SOPRANO WHO HAS USED HER LOVELY VOICE AND CAREFUL INTERPRETATIONS OF MUSIC AS WELL AS HER PALE BEAUTY TO BUILD A SUCCESSFUL PERFORMING CAREER THE LIFE OF THIS HIGH STRUNG AND CHARMING ARTIST APPEARS GLAMOROUSLY COMPLICATED AS SHE TRIES TO KEEP ITS ELEMENTS ALL AFLOAT HER RICH AND LOVING HUSBAND CHARLES HER HANDSOME MYSTERIOUS LOVER JACQUES AND HER WORK THIS PRIVATE DRAMA DERIVES EXTRA PASSION AND TENSION BECAUSE IT IS INTERTWINED WITH THE BIGGER DRAMA AND BIGGER MORAL QUESTIONS RAISED BY WAR BUT THE FOCUS IS KEPT ON IRENE AND CHARLES AND JACQUES AND EVENTUALLY WHETHER ANY OF THEM WILL USE THE PISTOL CHARLES KEEPS IN HIS DESK DRAWER IF ALL THIS SOUNDS LIKE THE HIGH FLOWN VISION OF A YOUNG GIRL IT'S MEANT TO IRENE ELENA SAFONOVA AND HER HUSBAND CHARLES RICHARD BOHRINGER AND JACQUES SAMUEL LABARTHE HER LOVER ARE CERTAINLY ROMANTIC FIGURES BUT THEY SEEM BREATHLESSLY SO WHEN SEEN FROM THE POINT OF VIEW OF THE CHARACTER PRESENTING THEM SHE IS SOPHIE VASSEUR ROMANE BOHRINGER THE YOUNG WOMAN IRENE HIRES TO BE HER ACCOMPANIST AND THE REAL LIFE DAUGHTER OF THE MAN WHO PLAYS IRENE'S FILM HUSBAND BUT SOPHIE BECOMES MUCH MORE FOR HER THAN THAT SHE BECOMES IRENE'S MAID HER MUSICAL ADVISER HER CONFIDANTE AND IRENE FOR SOPHIE BECOMES A KIND OF FAIRY GODMOTHER THE FABULOUS CREATURE WHO HAS WHISKED HER AWAY FROM HER DRAB LIFE AND DROPPED HER INTO A GROWN UP VERSION OF OZ ONCE THE PLEASURE OF BEING IN IRENE'S SILKY SURROUNDINGS GROWS FAMILIAR HOWEVER SOPHIE GETS CRANKY AS SHE REALIZES THAT PROXIMITY TO THESE RICHLY PASSIONATE AND GLAMOROUS LIVES HASN'T GIVEN HER ONE OF HER OWN SHE MAY BE A TALENTED PIANIST BUT THE AUDIENCE'S HUZZAHS ARE FOR IRENE SHE MAY HAVE BETTER CLOTHES THAN SHE DID BEFORE AND THE CHANCE TO EAT OYSTERS BUT SHE HAS NO TIME FOR ROMANCE SHE'S TOO BUSY TENDING TO IRENE SOPHIE IS A FAMILIAR NOVELISTIC CHARACTER THE OBSERVER NARRATOR WHO IS WILLING TO BECOME A CIPHER IN ORDER TO TELL THE STORY OF THE MORE FLAMBOYANT CHARACTERS AROUND HER BUT SOPHIE ISN'T SIMPLY THE CONDUIT FOR IRENE'S STORY MS. BOHRINGER'S WATCHFUL INTENSITY MAKES IT VERY CLEAR THAT SOPHIE MOST EMPHATICALLY DOESN'T WANT TO BE A ZERO SHE HERSELF DOESN'T KNOW THIS WHEN SHE ACCEPTS THE JOB IN A SCENE SHREWDLY PLAYED BY MS. BOHRINGER AND MS. SAFONOVA SHE IS SIMPLY FLATTERED THAT THE CHARMING IRENE THINKS SHE'S WORTHY OF THE POSITION YET EVEN IN THIS EARLY STAGE OF THEIR RELATIONSHIP SOPHIE SHOWS SIGNS OF UNUSUAL SELF CONFIDENCE WHEN IRENE QUESTIONS HER INTERPRETATION OF A PIECE OF MUSIC SHE FIRMLY AND COMPLETELY EXPLAINS HER REASONS FOR PLAYING IT THAT WAY IRENE RECOGNIZES THAT TOUGHNESS AND LIKES HER FOR IT YET SHE MAKES IT CLEAR TO SOPHIE THAT NOTHING CAN BE MORE IMPORTANT TO HER THAN IRENE AND NOTHING IS A FACT SOPHIE COMES TO RESENT EVEN MORE SO BECAUSE IRENE IS SO KIND TO HER ONE NIGHT WHEN IRENE COMES TO HER ROOM TO THANK HER FOR PLAYING SO WELL AT HER FIRST CONCERT SOPHIE STARES AT HER THINKING I LOVE YOU MORE AND MORE I HATE YOU MORE AND MORE CLAUDE MILLER HAS DIRECTED THE ACCOMPANIST WITH A LYRICAL REFINEMENT THAT AT TIMES SEEMS TO BE A PARODY OF THE QUINTESSENTIALLY FRENCH MOVIE IT'S ALL EXQUISITE THE BRICE APARTMENT IRENE'S CLOTHES THE TEARS THAT ALMOST EVERYONE EVENTUALLY SHEDS THE MOVIE'S MOOD IS REINFORCED AT ALMOST EVERY TURN BY THE MUSIC DEFTLY SCORED BY ALAIN JOMY LAURENCE MONTEYROL ACTUALLY RECORDED THE ARIAS THAT IRENE SINGS AS SHE LIP SYNCHS THEM MS. SAFONOVA MANAGES TO MAKE MS. MONTEYROL'S VOICE PART OF HER SOUL GERONIMO AN AMERICAN LEGEND HAS THE STATELY GRANDEUR OF THE OLD WESTERNS EVERYTHING ABOUT IT IS WRIT LARGE INCLUDING ITS CLICHES BUT THAT'S PART OF ITS BEAUTY DIRECTOR WALTER HILL AND SCREENWRITERS JOHN MILIUS AND LARRY GROSS HAVE MORE OR LESS IMAGINED WHAT THE LAST DAYS OF GERONIMO MIGHT HAVE BEEN LIKE BEFORE THE FAMOUS CHIRICAHUA APACHE WARRIOR FINALLY SURRENDERED TO THE U. S. ARMY WES STUDI IS SADLY NOBLE AS GERONIMO AND JASON PATRIC ADMIRABLY MATCHES HIM IN SADNESS AND NOBILITY AS THE SOUTHERN GENTLEMAN SOLDIER WHO NEGOTIATES HIS FINAL SURRENDER THE LANDSCAPE MAY SEEM FAMILIAR SOME OF THE FILM WAS SHOT IN THE RED CANYONS OF MOAB UTAH THE QUOTE SET QUOTE FOR MANY CLASSIC WESTERNS THE BATTLES MAY SEEM FAMILIAR TOO BUT THAT DOESN'T MAKE THEM ANY LESS EXCITING TO WATCH THAT GOES FOR ROBERT DUVALL AND GENE HACKMAN AS WELL I HAVE FOND MEMORIES OF A CERTAIN KIND OF WALT DISNEY MOVIE IN WHICH A BRAVE YOUNG PERSON SUCCEEDS IN SOME SUPERHUMAN EFFORT OFTEN WITH THE HELP OF AN ANIMAL USUALLY A DOG IRON WILL THE STORY OF A HISTORIC DOG SLED RACE IS EXACTLY THAT KIND OF MOVIE INDEED I THINK IT CONTAINS MUCH OF THE SAME DIALOGUE AS THE OTHERS IN THIS FILM BASED ON A TRUE STORY YOUNG WILL STONEMAN MAKES A HEROIC EFFORT TO WIN A FIVE HUNDRED MILE RUN FROM WINNIPEG MANITOBA TO SAINT PAUL MINNESOTA AND HE IS INSPIRED BY A WHITE HUSKY NAMED GUS THIS PERIOD PIECE SET JUST BEFORE THE ONSET OF WORLD WAR ONE IS A FINE FAMILY MOVIE EXCITING SCENERY FOR THE PARENTS A WHOLE NEW WORLD FOR THE KIDS VIDEO TIP FOR ADULTS WHO LIKE MOVIES ABOUT PEOPLE WINNING RACES THERE'S ALWAYS CHARIOTS OF FIRE THE LYRICAL NINETEEN EIGHTY ONE FILM ABOUT THE TWO YOUNG RUNNERS WHO REPRESENTED BRITAIN IN THE NINETEEN TWENTY FOUR OLYMPICS ROY MARSDEN IS BACK AS THE PENSIVE INSPECTOR ADAM DALGLIESH IN A NEW TWO PART MYSTERY TITLED QUOTE NATURAL CAUSES QUOTE AND HAPPY WE ARE TO SEE HIM IN THIS ADVENTURE CONCERNING A CORPSE FROM WHICH THE HANDS HAVE BEEN HACKED OFF ADDITIONALLY THE LONELY DALGLIESH HAS BEEN GIVEN OR MORE PRECISELY BEEN ENCUMBERED WITH A LOVE INTEREST THOUGH ONE HAPPILY SHORT LIVED SOMETHING ABOUT DALGLIESH AS A GRATEFUL LOVE PUPPY SEEMS OUT OF KILTER IT ALSO BRINGS OUT THE WORST IN THE SCRIPTWRITERS THINGS GET SO LOW INDEED THAT WE ARE REDUCED TO HEARING LINES FROM THE BROODING GIRLFRIEND INFORMING US THAT DALGLIESH MAY BE THE SORT OF MAN WHO JUST CAN'T COMMIT FORTUNATELY DALGLIESH SPENDS MOST OF HIS TIME PURSUING MURDERERS IN THIS AS EVER WONDERFULLY GLOOMY MYSTERY THE STORY OF A YOUNG WOMAN'S DESCENT INTO PARANOID SCHIZOPHRENIA AND HER SUBSEQUENT TREATMENT AND RECOVERY THIS IS A GRIM FILM ALL RIGHT IT IS ALSO A DEFTLY MADE ONE IN WHICH DIANA ROSS DELIVERS A HARROWINGLY PERSUASIVE PERFORMANCE THIS H. B. O. SPECIAL IS BASED ON THE EXPERIENCES OF FORMER NEW YORK MEDICAL EXAMINER MICHAEL BADEN AND SOME OF THE NOTORIOUS CASES THE DOCTOR HELPED SOLVE ITS DUMBED DOWN TONE AND LURID MOOD MUSIC ASIDE THERE IS MUCH TO RELISH IF THAT IS THE WORD IN THIS NEATLY PACKAGED HOUR WHO CAN RESIST A STORY OF A HOMICIDE INVOLVING A HUMAN FOOT IN A SHARK'S STOMACH IT HELPS THAT DOCTOR BADEN DELIVERS DATA ABOUT STOMACHS AND THEIR CONTENTS WITH THE LOVING ABSORPTION CHARACTERISTIC OF THOSE WHO ARE EXPERTS IN THEIR FIELD WATCH THIS TO LEARN WHAT INGESTED POTATOES CAN TELL A MEDICAL EXAMINER AS OPPOSED SAY TO CARROTS BUT THE SUBJECTS OF THESE STORIES ARE FREQUENTLY LESS PALATABLE THAN THIS THERE ARE A FEW PICTURES HERE THAT ARE NOT FOR THE SQUEAMISH OR EVEN THE UNSQEAMISH SO BE WARNED THE SUBJECT IS DEINSTITUTIONALIZATION OF THE INSANE IN THIS CHAPTER OF FRONTLINE THE FILM SET IN NORTHAMPTON MASSACHUSETTS AT A CENTER FOR LIBERATED EX MENTAL PATIENTS FROM NORTHAMPTON STATE HOSPITAL PROVIDES AS ELOQUENT A PICTURE OF THE RESULTS BROUGHT ABOUT BY PROGRESSIVE MINDED ADVOCATES OF UNRESTRICTED LIBERTY FOR THE DERANGED AS ANY WE HAVE LATELY SEEN THE FILM DOES IT IS TRUE OFFER BENIGN EXAMPLES OF RELEASED PATIENTS WANDERING IN HAPPY CONFUSION THROUGH THE TOWN'S STREETS BUT ITS REAL CENTER IS CLEARLY ON THE VIOLENT MENTALLY ILL AND THEIR ENDANGERED FAMILIES THE FILMMAKERS RECOUNT THE PLIGHT OF A MINISTER AND HIS WIFE WHOSE HABITUALLY VIOLENT PSYCHOTIC SON BRUTALLY ASSAULTED THEM BECAUSE OF THE NEW RIGHTS LAWS WON FOR THE MENTALLY ILL THEIR SON HAD THE RIGHT TO REFUSE HOSPITALIZATION AND ANY TREATMENT ONE JUDGE REARDON FINDS NO REASON TO RE COMMIT HIM NOTWITHSTANDING PSYCHIATRIC TESTIMONY ABOUT THE RISK OF CONTINUING VIOLENCE THE ACTIVIST LAWYER WHO WON THE LANDMARK NINETEEN SEVENTY EIGHT LAWSUIT THAT GAVE MENTAL PATIENTS THE RIGHT TO WANDER THE STREETS FREELY AND UNTREATED AND TO LIVE IN DEGRADATION IS ON HAND HERE TOO TO EXPLAIN THE WISDOM OF HIS VISION NOVA UNDERTAKES THE HISTORY OF CODEBREAKING AND THE EXPERTS WHO UNDID THE BEST SECURITY ARRANGEMENTS OF GERMANS AND JAPANESE BOTH IN THE FIRST AND THE SECOND WORLD WARS IT IS AS FASCINATING A HISTORY AS ONE COULD WISH BEGINNING WITH THE FAMOUS ZIMMERMAN TELEGRAM THAT PRECIPITATED THE U. S. ENTRY INTO THE FIRST WORLD WAR AND ON TO THE GERMAN ENIGMA MACHINE OF WORLD WAR TWO AND THE STILL MORE IMPENETRABLE JAPANESE DEVICE CALLED PURPLE ANALOG IT IS ALSO OF COURSE HISTORY OF A LIFE AND DEATH SORT WHEN ONE CONSIDERS THAT THE DECIPHERING OF THE JAPANESE NAVAL CODE MADE IT POSSIBLE TO PREPARE THE OFFENSIVE AT MIDWAY THAT SPELLED THE BEGINNING OF THE END FOR THE JAPANESE THIS IS ALSO THE STORY OF MEN LIKE WILLIAM FRIEDMAN AND HIS FELLOW CRYPTANALYSTS AND OF WARTIME LIVES SPENT AT THE CODEBREAKER'S ART AND WHO COULD ASK FOR ANYTHING MORE WARNING TO PENITENTS ANYTHING YOU SAY TO A CLERGYMAN CAN AND SOMETIMES WILL BE USED AGAINST YOU IN COURT THAT'S THE MESSAGE OF A GROWING NUMBER OF LEGAL CASES IN WHICH PROSECUTORS ARE BREACHING THE WALL OF SECRECY THAT HAS SURROUNDED THE CONFESSIONAL SINCE MEDIEVAL TIMES THE HISTORIC CHANGE IN DIRECTION APPEARS TO REFLECT BOTH HEIGHTENED PUBLIC INTEREST IN PUNISHING CRIMINALS AND AN EROSION OF THE TRADITIONAL DEFERENCE ACCORDED RELIGIOUS ACTIVITY TAKE THE MORRISTOWN N. J. MURDER TRIAL OF CRAIG SZEMPLE TWO YEARS AGO AFTER THE PROSECUTION HAD ALREADY RESTED ITS CASE AGAINST MR. SZEMPLE A JAILHOUSE MINISTER CAME FORWARD WITH THE CLAIM THAT THE DEFENDANT HAD CONFESSED TO HIM THE MINISTER PAUL BISCHOFF SAID HE WANTED TO TAKE THE STAND AGAINST THE ACCUSED WHO HAD PLEADED NOT GUILTY TO THE CHARGES AND HAD CLAIMED HE'D BEEN FRAMED AT FIRST PROSECUTORS IN THE CASE WEREN'T AT ALL SURE THE MINISTER'S TESTIMONY COULD BE ADMITTED IN COURT BUT AFTER LOOKING INTO THE STATE'S RULE ON THE SO CALLED CLERGY PENITENT PRIVILEGE THEY CONCLUDED THAT WHILE A MINISTER COULDN'T BE COMPELLED TO TESTIFY HE APPARENTLY COULD DO SO VOLUNTARILY THE PENITENT SEEMED TO HAVE NO SAY IN THE MATTER THE TRIAL JUDGE AGREED WITH THE PROSECUTORS' ANALYSIS OF THE RULE AND MR. BISCHOFF WAS PERMITTED TO TESTIFY MR. SZEMPLE'S ATTORNEY GEORGE T. DAGGETT SAYS HE BELIEVES THE CASE WAS HEADED FOR AN ACQUITTAL BEFORE THE MINISTER BECAME INVOLVED BECAUSE OF THE LAST MINUTE EVIDENCE A MISTRIAL WAS DECLARED BEFORE THE JURY BEGAN DELIBERATING AND MR. SZEMPLE REMAINS IN JAIL AWAITING A RETRIAL MR. BISCHOFF QUOTE MAY HAVE THOUGHT HE WAS SAVING MY CLIENT'S SOUL BUT HE WAS COOKING HIS GOOSE QUOTE SAYS MR. DAGGETT MR. BISCHOFF MINISTER OF VISITATION FOR THE TRINITY BAPTIST CHURCH IN MONTVILLE N. J. DECLINED TO COMMENT AN INTERMEDIATE STATE APPEALS COURT LAST YEAR REJECTED MR. SZEMPLE'S APPEAL AND THE CASE IS NOW PENDING BEFORE THE STATE SUPREME COURT WHERE A DECISION IS EXPECTED SOON IF HE LOSES MR. SZEMPLE COULD BE TRIED AGAIN FOR THE NINETEEN SEVENTY SEVEN MURDER OF A BOYHOOD FRIEND THE CASE IN WHICH MR. BISCHOFF TESTIFIED THE MINISTER COULD ALSO TESTIFY IN TRIALS FOR TWO OTHER MURDERS TO WHICH HE SAYS MR. SZEMPLE CONFESSED MR. SZEMPLE DENIES HE CONFESSED ANYTHING TO THE MINISTER WHO VISITED HIM IN JAIL AT LEAST NINETEEN TIMES THE SZEMPLE APPEAL COMES AT A TIME WHEN COURTS AROUND THE COUNTRY HAVE BEGUN TO TAKE A NARROWER VIEW OF THE CLERGY PENITENT PRIVILEGE NINE STATES GEORGIA ILLINOIS INDIANA MARYLAND MICHIGAN MISSOURI VERMONT VIRGINIA AND WYOMING ALREADY PERMIT THE PRIVILEGE TO BE BROKEN BY A CLERGYMAN WITHOUT THE PERMISSION OF THE WORSHIPER AND MANY OTHER STATES ARE FINDING A VARIETY OF REASONS NOT TO LET THE PRIVILEGE APPLY IN PARTICULAR INSTANCES MEANWHILE MANY STATES ARE GIVING SIGNIFICANT DEFERENCE TO A RELATIVELY NEW SOURCE OF SOLACE THE PSYCHOTHERAPIST PATIENT RELATIONSHIP IF MR. SZEMPLE HAD CONFESSED TO A THERAPIST NEW JERSEY PROSECUTORS SAY THEY WOULDN'T HAVE BEEN ABLE TO USE THE EVIDENCE AGAINST HIM THE THERAPIST PRIVILEGE IN NEW JERSEY ALLOWS THE PATIENT TO BLOCK SUCH DISCLOSURE RELIGIOUS RIGHTS GROUPS AND CIVIL LIBERTIES LAWYERS DECRY THE TREND ARGUING THAT PUTTING MINISTERS ON THE WITNESS STAND UNDERMINES THE SANCTITY THAT WORSHIPERS EXPECT IN THEIR SPIRITUAL COMMUNICATIONS IT'S GETTING TO THE POINT WHERE PEOPLE FEEL THEY NEED A MIRANDA LIKE WARNING BEFORE THEY TALK TO THEIR PASTOR OR RABBI SAYS ANNE MARIE AMIEL AN ATTORNEY WITH THE RUTHERFORD INSTITUTE WHICH DEFENDS RELIGIOUS RIGHTS CASES MOST STATES STILL GIVE WORSHIPERS SOME PROTECTION IN COMMUNICATIONS WITH MEMBERS OF THE CLERGY THOUGH SELDOM AS MUCH AS ATTACHES TO ATTORNEY CLIENT DOCTOR PATIENT OR SPOUSE TO SPOUSE COMMUNICATIONS EVEN IN THOSE STATES COURTS HAVE FOUND THAT INFORMATION GIVEN TO A MINISTER CAN BE USED IN COURT IF THE WORSHIPER WASN'T SEEKING FORGIVENESS OR DIDN'T ACT TO KEEP THE MATTER SECRET THE SECRECY CONCERN WAS ADDRESSED IN THE CASE OF JOHN LIST WHO WAS ARRESTED IN NINETEEN EIGHTY NINE FOR THE NINETEEN SEVENTY ONE MURDER OF FIVE OF HIS FAMILY MEMBERS MR. LIST CLAIMED THE PRIVILEGE SHOULD APPLY TO A WRITTEN CONFESSION ADDRESSED TO HIS PASTOR THAT WAS LEFT AT THE SCENE OF THE MASSACRE BUT A MID LEVEL APPEALS COURT ALSO IN NEW JERSEY UPHELD MR. LIST'S CONVICTION LAST YEAR RULING THAT THE CONFESSION LETTER COULD BE ADMITTED AS EVIDENCE BECAUSE MR. LIST COULDN'T HAVE EXPECTED IT TO REMAIN CONFIDENTIAL EXPECTATION OF PRIVACY WAS ALSO AT ISSUE IN A NINETEEN NINETY TWO CASE IN WHICH A MORMON BISHOP WAS REQUIRED TO ANSWER QUESTIONS CONCERNING A PARISHIONER WHO HAD KILLED A NURSE BEFORE THE ATTACK THE ASSAILANT'S WIFE HAD CALLED THE BISHOP AND SPOKEN TO HIM ABOUT HER HUSBAND THE MORMON CHURCH ARGUED THAT SUCH PRIVATE DISCUSSIONS ARE PROTECTED BUT THE TRIAL JUDGE SAID THE PRIVILEGE WAS WAIVED BECAUSE THE WIFE HAD ALSO CALLED A NINE HUNDRED ELEVEN OPERATOR ABOUT HER HUSBAND THE PRIVILEGE ISSUES ARE PARTICULARLY SENSITIVE RIGHT NOW LAWYERS SAY BECAUSE OF STRONG PUBLIC SUPPORT FOR TOUGH MEASURES AGAINST CRIME PROSECUTORS ARGUE THAT PRIVILEGES UNFAIRLY RESTRICT THE USE OF IMPORTANT EVIDENCE AND TESTIMONY THAT COULD LEAD TO CONVICTIONS IN THE NEW JERSEY MURDER TRIAL THE AMERICAN CIVIL LIBERTIES UNION FILED A BRIEF ARGUING THAT MR. SZEMPLE'S RIGHT TO WORSHIP HAD BEEN VIOLATED MOST PEOPLE WHEN THEY GO TO THEIR RELIGIOUS ADVISERS ASSUME THAT WHAT THEY SAY WILL STAY THERE SAYS RONALD CHEN A RUTGERS UNIVERSITY LAW PROFESSOR REPRESENTING THE A. C. L. U. ANYONE AND YOU DON'T HAVE TO BE AN ACCUSED SERIAL KILLER TO FEEL THIS WAY WHO HAS SOMETHING THEY AREN'T PROUD OF WOULD BE RELUCTANT TO TELL THEIR MINISTER ABOUT IT MR. SZEMPLE'S LAWYER MR. DAGGETT WHO YEARS AGO STUDIED TO BE A PRIEST SAYS HE WAS SHOCKED THAT ANY MINISTER WOULD TESTIFY ABOUT A CONFIDENTIAL MATTER THE PRIVILEGE IS MEANT TO ALLOW PEOPLE TO COME FORWARD AND GET SOME RELIEF BY CONFESSING WE ENCOURAGE PEOPLE TO MAKE PEACE WITH GOD SAYS MR. DAGGETT ADDING THAT SOME DEFENSE LAWYERS IN NEW JERSEY NOW WARN THEIR CLIENTS AGAINST TALKING TO JAILHOUSE MINISTERS THE MORRIS COUNTY N. J. PROSECUTORS HANDLING THE CASE SAY MR. SZEMPLE'S SUPPORTERS ARE EXAGGERATING THE IMPACT THE CASE WILL HAVE ON RELIGIOUS FREEDOM QUOTE I'D BE UNCOMFORTABLE SENDING INVESTIGATORS OUT TO SYMBOLICALLY KNOCK ON CONFESSION BOOTH DOORS QUOTE SAYS COUNTY PROSECUTOR W. MICHAEL MURPHY JUNIOR BUT WE FELT DUTY BOUND TO USE THE EVIDENCE I WOULDN'T DO IT IN A CASE THAT HAD LESS SIGNIFICANCE A CASE OVER BAD CHECKS FOR INSTANCE BUT HERE WE HAD A CASE INVOLVING SOMEONE CHARGED WITH THREE MURDERS SOME LAWYERS SAY THE BALANCING OF RELIGIOUS CONCERNS AGAINST THE NEED FOR EVIDENCE AT TRIAL IS TILTING IN FAVOR OF PROSECUTORS THESE DAYS THE MOST COMMON COMPROMISES OF THE CLERGY PRIVILEGE INVOLVE CASES OF SUSPECTED CHILD ABUSE MANY STATES REQUIRE THAT INSTANCES OF POSSIBLE CHILD ABUSE BE REPORTED EVEN BY PASTORS WHO MAY LEARN OF SUCH ABUSE IN CONFIDENTIAL DEALINGS WITH CHURCHGOERS PRIVILEGES ARE REAL OBSTACLES TO SEARCHING OUT THE TRUTH AT TRIAL SAYS MICHAEL M. SHARLOT A UNIVERSITY OF TEXAS LAW SCHOOL PROFESSOR WHETHER PEOPLE WOULD NOT SEEK THE SUCCOR OF THE CLERGY IF THE PRIVILEGE WERE CUT BACK IS DUBIOUS TO ME FEDERAL AND STATE PROSECUTORS SAID THEY HAVE DROPPED THEIR INVESTIGATION INTO ASSERTIONS THAT REPUBLICANS USED CAMPAIGN MONEY TO SUPPRESS BLACK VOTES IN NEW JERSEY'S GUBERNATORIAL ELECTION LAST NOVEMBER THE ANNOUNCEMENT BY U. S. ATTORNEY MICHAEL CHERTOFF IN NEWARK EFFECTIVELY DOUSES THE POLITICAL BRUSHFIRE IGNITED AFTER THE VICTORY OF GOVERNOR ELECT CHRISTIE TODD WHITMAN OVER DEMOCRATIC INCUMBENT JIM FLORIO LAST NOVEMBER MRS. WHITMAN'S CAMPAIGN MANAGER EDWARD J. ROLLINS STARTED THE CONTROVERSY AFTER THE ELECTION BY TELLING REPORTERS THAT THE CAMPAIGN HAD DONATED MONEY TO BLACK MINISTERS' FAVORITE CHARITIES IN RETURN FOR THEIR PLEDGES NOT TO URGE THEIR CONGREGATIONS TO VOTE FOR GOVERNOR FLORIO MR. ROLLINS ALSO ASSERTED THAT SO CALLED WALKING AROUND MONEY WAS USED TO PERSUADE DEMOCRATIC ELECTION DAY WORKERS TO STAY AT HOME AND WATCH TELEVISION BUT ON WEDNESDAY MR. CHERTOFF AND TWO FORMER STATE ATTORNEYS GENERAL SAID THEIR INVESTIGATION FOUND NO EVIDENCE TO SUPPORT THESE ASSERTIONS WHICH MR. ROLLINS HAS SINCE RETRACTED PROSECUTORS SAID THEY WERE AT A LOSS TO CONCLUDE WHAT LED MR. ROLLINS TO MAKE THE CLAIM I'M NOT IN THE BUSINESS OF PSYCHOANALYZING PEOPLE SAID MR. CHERTOFF IN A FOURTEEN PAGE REPORT INVESTIGATORS SAID THEY INTERVIEWED SIXTY TWO INDIVIDUALS INCLUDING MR. ROLLINS COMBED THROUGH FIVE THOUSAND FIVE HUNDRED PAGES OF FINANCIAL RECORDS AND EXAMINED CAMPAIGN MEMORANDA CORRESPONDENCE TELEPHONE RECORDS APPOINTMENT BOOKS AND COMPUTER FILES THREE DOZEN F. B. I. AND STATE INVESTIGATORS SHARED INFORMATION AND INDEPENDENTLY REACHED THE SAME CONCLUSION AT A NEWS CONFERENCE MRS. WHITMAN THE FIRST WOMAN ELECTED GOVERNOR IN NEW JERSEY SAID SHE HAD BEEN CONFIDENT FROM THE BEGINNING THAT QUOTE NOTHING WAS THERE QUOTE AND ADDED THAT SHE WAS PLEASED THE MATTER COULD BE PUT TO REST BEFORE HER INAUGURATION NEXT TUESDAY MR. ROLLINS DECLINED TO SPEAK TO REPORTERS IN A STATEMENT HE APOLOGIZED AGAIN TO MRS. WHITMAN AND THE BLACK COMMUNITY AND CLERGY IN NEW JERSEY STATE DEMOCRATS WHO SUED TO OVERTURN THE ELECTION RESULTS AFTER MR. ROLLINS' COMMENTS DROPPED THE CASE IN NOVEMBER NEITHER THEY NOR THEIR LAWYERS RETURNED PHONE CALLS YESTERDAY MILO GEYELIN CONTRIBUTED TO THIS ARTICLE THE COMPUTER INDUSTRY'S MARKETING BATTALIONS HAVE BEEN IN FULL CRY ABOUT THE VIRTUES OF MULTIMEDIA SOFTWARE P. C. PROGRAMS FEATURING COMBINATIONS OF ANIMATION SOUND VIDEO TEXT AND GRAPHICS IN FACT THE ADVENT OF MULTIMEDIA ON THE COMPUTER HAS BEEN A KEY REASON FOR THE SURGE IN HOME COMPUTER SALES ESPECIALLY OF MODELS WITH SOUND CAPABILITY AND C. D. ROM DISK DRIVES THE EQUIPMENT NEEDED TO PLAY THE HIGH CAPACITY PLATTERS ON WHICH MOST MULTIMEDIA SOFTWARE IS DISTRIBUTED I'VE RECOMMENDED SOME SUCH PROGRAMS MYSELF AND WILL CONTINUE TO DO SO BUT IT'S TIME TO REVEAL THE DIRTY LITTLE SECRET OF THE INDUSTRY MARKETERS THE DARK SIDE OF MULTIMEDIA IN MANY CASES GETTING MULTIMEDIA HARDWARE AND ESPECIALLY SOFTWARE TO RUN ON A TYPICAL I. B. M. COMPATIBLE COMPUTER CAN BE A FRUSTRATING EVEN IMPOSSIBLE TASK A CASE IN POINT WHEN A MUCH PUBLICIZED MULTIMEDIA HEALTH CARE SIMULATION PROGRAM SIMHEALTH WAS ISSUED TO GREAT PUBLICITY LATE LAST YEAR AT LEAST ONE COMPUTER SAVVY WHITE HOUSE STAFFER AND OTHER USERS INCLUDING YOURS TRULY COULDN'T GET IT TO WORK WITHOUT HELP FROM ITS PUBLISHER MAXIS THE SOFTWARE REQUIRED USERS TO ANSWER DETAILED TECHNICAL QUESTIONS ABOUT COMPONENTS OF THE COMPUTER AND SOME OBVIOUS CHOICES DIDN'T SEEM TO WORK THE PROGRAM WAS RUSHED OUT BEFORE TESTING WAS COMPLETED HAS BEEN IMPROVED AND MAXIS NO LONGER OWNS IT BUT THE SYNDROME IS WIDESPREAD NEITHER THE BASIC P. C. HARDWARE NOR THE UNDERLYING OPERATING SYSTEM SOFTWARE WHICH CONTROLS I. B. M. COMPATIBLES WAS DESIGNED TO PRODUCE SINGING DANCING VIDEO ON THE SCREEN MODIFYING THESE SYSTEMS FOR MULTIMEDIA CAN MEAN ALTERING THE COMPUTER'S CONFIGURATION IN WAYS THAT MESS UP THE MORE MUNDANE COMPONENTS SUCH AS MODEMS AND WORD PROCESSING SOFTWARE SOME PRODUCTS REQUIRE YOU TO KNOW HIGHLY TECHNICAL TERMS TO EVEN UNDERSTAND THEIR EXPLANATIONS OF HOW THEY ARE CHANGING YOUR MACHINE'S CONFIGURATION WORSE THERE ARE SOME PRODUCTS THAT RECONFIGURE KEY ASPECTS OF YOUR COMPUTER WITHOUT INFORMING YOU AT ALL IN ALL THESE CATEGORIES GAME SOFTWARE IS THE WORST OFFENDER SO HERE'S A BRIEF RUNDOWN OF THE KINDS OF PROBLEMS YOU MAY FACE IN GETTING MULTIMEDIA PRODUCTS TO RUN ON YOUR COMPUTER IN FUTURE COLUMNS ON MULTIMEDIA I PLAN TO WITHHOLD A FAVORABLE RECOMMENDATION FROM ANY PROGRAM THAT'S TOO HARD TO INSTALL OR INTERFERES WITH OTHER SOFTWARE THIS DISCUSSION IS LIMITED TO I. B. M. COMPATIBLES IN GENERAL USERS OF APPLE'S MACINTOSH COMPUTERS FACE VERY FEW OF THESE PROBLEMS BECAUSE A SINGLE COMPANY APPLE MAKES BOTH THE HARDWARE AND THE OPERATING SYSTEM AND HAS MADE SOUND GRAPHICS AND VIDEO A PRIORITY THE FIRST MULTIMEDIA PROBLEM MANY I. B. M. COMPATIBLE USERS ENCOUNTER COMES WHEN THEY TRY TO ADD SOUND CAPABILITY AND SLASH OR C. D. ROM DRIVES TO OLDER MACHINES THIS REQUIRES OPENING THE COMPUTER AND INSTALLING AT LEAST ONE OR MAYBE TWO FLAT CARDS JAMMED WITH CHIPS INTO SPECIAL SLOTS IN TOO MANY CASES THIS REQUIRES HOURS OF MADDENING ADJUSTMENT OF TINY SWITCHES OR SOFTWARE SETTINGS TO PREVENT THE NEW EQUIPMENT FROM DISABLING THINGS LIKE MODEMS AND MICE IT'S MUCH BETTER IF BUYING A NEW COMPUTER TO GET ONE WITH STEREO SOUND AND A C. D. ROM DRIVE BUILT IN EVEN IF YOU CLEAR THIS HURDLE HOWEVER HOURS OF AGGRAVATION AWAIT YOU AS YOU TRY TO INSTALL AND RUN MULTIMEDIA SOFTWARE ESPECIALLY GAMES AND OTHER PROGRAMS THAT DON'T TAKE ADVANTAGE OF MICROSOFT WINDOWS BUT RELY ON THE OLDER M. S. D. O. S. OPERATING SYSTEM I ESTIMATE THAT A THIRD OF THE MULTIMEDIA PROGRAMS I'VE TESTED LATELY HAVE CAUSED PROBLEMS ONE PROBLEM IS WHAT THE WHITE HOUSE AND I FACED PROGRAMS THAT EXPECT YOU TO KNOW THE MAKE AND MODEL OF YOUR AUDIO AND VIDEO CIRCUITRY AND EVEN COMPLICATED CONFIGURATION INFORMATION ABOUT THEM ONE SUCH PROGRAM IS THE GAME MAD DOG MCCREE BY AMERICAN LASER GAMES WORSE IS SOFTWARE THAT REQUIRES YOU TO MAKE BIG CHANGES IN THE BASIC CONFIGURATION OF YOUR COMPUTER SOME OF THESE PROGRAMS TINKER WITH SPECIAL CONFIGURATION FILES CALLED QUOTE AUTOEXEC.BAT QUOTE AND QUOTE CONFIG.SYS QUOTE IN WAYS MOST USERS DON'T AND SHOULDN'T HAVE TO UNDERSTAND AND THAT CAN GOOF UP WINDOWS OR OTHER PROGRAMS STILL OTHER SOFTWARE REFUSES TO RUN OR EVEN TO INSTALL UNLESS YOU SOMEHOW FIND AND RUN A DRIVER FOR SOMETHING CALLED VESA VIDEO A NEW STANDARD THAT MOST SOFTWARE DOESN'T USE ANOTHER GROUP OF PROGRAMS TRIES TO SEIZE ALL YOUR COMPUTER MEMORY OR UTILIZE AN OLDER TYPE OF MEMORY MANAGEMENT THAT MOST MODERN PROGRAMS DON'T USE AMONG THE PRODUCTS I'VE FOUND GUILTY OF ONE OR MORE OF THESE TRAITS LATELY ARE A GAME CALLED THE SEVENTH GUEST BY VIRGIN GAMES A PROGRAM CALLED SID AND AL'S INCREDIBLE TOONS BY DYNAMIX AND SOME GAMES FROM SIERRA ON LINE IN SOME CASES SOFTWARE MAKERS SUGGEST YOU CREATE A FLOPPY DISK CONFIGURED ONLY FOR THEIR PRODUCTS AND START YOUR COMPUTER USING THE FLOPPY INSTEAD OF YOUR HARD DISK THAT'S NOT ONLY CUMBERSOME IT'S A THROWBACK TO NINETEEN EIGHTY ONE COMPUTING THAT WOULDN'T BE NECESSARY IF THE SOFTWARE WORKED BETTER WITH STANDARD MACHINES AND WITH WINDOWS SOME COMPANIES DO A GREAT JOB OF THIS INCLUDING KNOWLEDGE ADVENTURE AND MEDIO INFOCOM'S FASCINATING NEW GAME RETURN TO ZORK GAVE ME NO TROUBLE NOR HAVE ANY OF THE MICROSOFT MULTIMEDIA TITLES SO IT CAN BE DONE IT'S TIME THE REST OF THE COMPUTER INDUSTRY GETS THE MESSAGE THAT COMPUTER USERS SHOULDN'T HAVE TO BE TECHIES TO USE MULTIMEDIA IT WAS AMUSING TO READ THE DECEMBER FOURTEENTH LEGAL BEAT COLUMN WHICH REPORTED THAT THE CALIFORNIA SUPREME COURT RULED IN A DECISION CONTRARY TO OTHER COURTS THAT LAW FIRMS CAN INCLUDE ANTICOMPETITION CLAUSES IN THEIR PARTNERSHIP AGREEMENTS AND THE CALIFORNIA COURTS WILL ENFORCE THEM THE PURPOSE OF SUCH CLAUSES IS TO MAKE IT MORE DIFFICULT FOR DEPARTING LAWYERS TO CONTINUE TO REPRESENT CLIENTS AFTER LEAVING THE FIRST LAW FIRM RULE ONE TO FIVE HUNDRED OF THE CALIFORNIA RULES OF PROFESSIONAL CONDUCT PROHIBITS SUCH ANTICOMPETITIVE AGREEMENTS THE COMMENTARY TO THIS RULE STATES EXPLICITLY THAT WHEN A LAWYER LEAVES THE FIRM WHETHER THE DEPARTURE WAS QUOTE VOLUNTARY OR INVOLUNTARY QUOTE THE LAWYER MUST BE QUOTE FREE TO PRACTICE LAW WITHOUT ANY CONTRACTUAL RESTRICTION EXCEPT IN THE CASE OF RETIREMENT FROM THE ACTIVE PRACTICE OF LAW QUOTE A LAWYER WHO VIOLATES THESE RULES CAN BE DISBARRED BY THE WAY DO YOU KNOW WHO PROMULGATES THESE RULES IT IS THE CALIFORNIA SUPREME COURT NOW YOU KNOW WHY I AM AMUSED WAKE UP AND SMELL THE COFFEE WITH FRIED EGGS AND TOAST ON THE SIDE A NEW GADGET FROM WELBILT CORPORATION CALLED BREAKFAST EXPRESS WILL PREPARE TWO EGGS SUNNY SIDE UP TOAST AND COFFEE AND HAVE THEM READY WHEN YOU WAKE UP THE MACHINE WHICH WILL RETAIL FOR FOUR HUNDRED DOLLARS IS AN AMPLIFICATION OF THE AUTOMATIC COFFEE MAKER THE NIGHT BEFORE ITS OWNER PUTS GROUND COFFEE AND WATER IN THE BREWER BREAD SLICES IN THE OVEN COMPONENT AND ONE OR TWO EGGS IN A CRACKING AREA THE NEXT MORNING AT A PREDETERMINED TIME A RAZOR SHARP BLADE SLICES OFF THE BOTTOMS OF THE EGGS AND THEY DROP ONTO A NONSTICK GRIDDLE AS THE COFFEE BREWS AND THE BREAD TOASTS THE EGGS ARE COOKED TO ORDER FROM RUNNY TO FIRM WELBILT HAS HAD CONSIDERABLE SUCCESS WITH BREAD MACHINES WHICH TURN RAW INGREDIENTS INTO FRESH BAKED BREAD AND IT FIGURES THE SAME MARKET WILL APPRECIATE A HOT BREAKFAST ON DEMAND IT ALSO CITES AMERICAN EGG BOARD STUDIES DETECTING QUOTE NOSTALGIA QUOTE FOR EGGS AND OTHER TRADITIONAL BREAKFASTS ITS PRODUCT THE COMPANY SAYS WOULD LET A WORKING MOM OR DAD SEND OFF THE FAMILY IN THE MORNING WITH A QUICK NUTRITIOUS BREAKFAST SOME WELBILT MARKETERS EVEN INSIST THE DEVICE WOULD BE IDEAL FOR TRUCK DRIVERS TO USE IN LIEU OF A DINER THE MACHINE WHICH WILL BE FEATURED AT THE INTERNATIONAL HOUSEWARES SHOW IN CHICAGO THIS MONTH WILL BE SOLD THROUGH MAINLINE DEPARTMENT STORES AND SPECIALTY CATALOGS SO FAR HOTELS AREN'T WORRIED THAT THE MACHINE WILL CUT INTO THEIR BREAKFAST CLIENTELE PHILIPPE FERET EXECUTIVE CHEF AT THE REGENCY HOTEL ON NEW YORK'S PARK AVENUE SAYS THE PEOPLE WHO TURN OUT FOR THE HOTEL'S POWER BREAKFAST CARE MORE ABOUT THE ART OF THE DEAL THAN THE MEAL IT'S NOT JUST BREAKFAST CHEF FERET SAYS IT'S LIKE A SPECIAL GATHERING PLACE IT TOOK WELBILT THREE YEARS TO FIGURE OUT HOW TO DUPLICATE THE CAREFUL CRACKING AN EGG REQUIRES TO AVOID A RUNNY YOLK AND KEEP OUT BITS OF SHELL SO HOW MANY EGGS KEPT BREAKFAST EXPRESS FROM BECOMING AN EXPENSIVE OMELETTE MAKER QUOTE HUNDREDS PERHAPS THOUSANDS QUOTE SAYS TOM LACALAMITA A COMPANY SPOKESMAN IN A DEMONSTRATION FOR TWO BREAKFAST EATERS ONLY ONE OF FOUR YOLKS CAME OUT BROKEN INVESTORS POURED MORE THAN TWENTY BILLION DOLLARS INTO MONEY MARKET MUTUAL FUNDS IN THE LATEST WEEK AS TAXABLE YIELDS SLIPPED AND TAX FREE YIELDS PLUMMETED I. B. C. SLASH DONOGHUE'S AVERAGE SEVEN DAY COMPOUND YIELD ON TAXABLE FUNDS EASED TO TWO POINT SEVEN FIVE PERCENT FROM TWO POINT SEVEN EIGHT PERCENT IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASSACHUSETTS NEWSLETTER THE AVERAGE SEVEN DAY COMPOUND YIELD ON TAX EXEMPT FUNDS PLUNGED TO ONE POINT SEVEN FOUR PERCENT FROM TWO POINT THREE SIX PERCENT THE NEWSLETTER REPORTED THE LATEST TAX FREE AVERAGE A NEAR RECORD LOW IS EQUIVALENT TO A TAXABLE TWO POINT SEVEN TWO PERCENT FOR INVESTORS IN THE THIRTY SIX PERCENT TAX BRACKET AND TO TWO POINT EIGHT EIGHT PERCENT FOR SOMEONE PAYING THIRTY NINE POINT SIX PERCENT IN TAXES COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF SIX HUNDRED THIRTY FIVE TAXABLE FUNDS ROSE BY FIFTEEN POINT SEVEN FOUR BILLION DOLLARS TO FOUR HUNDRED EIGHTY NINE POINT ONE EIGHT BILLION DOLLARS ACCORDING TO MONEY FUND REPORT MOST OF THAT INFLOW THIRTEEN POINT SEVEN THREE BILLION DOLLARS WENT TO ONE HUNDRED NINETY FIVE FUNDS OPEN ONLY TO INSTITUTIONAL INVESTORS INDIVIDUALS ADDED JUST OVER TWO BILLION DOLLARS TO THE REMAINING TAXABLE FUNDS ASSETS OF THREE HUNDRED THIRTY NINE TAX EXEMPT FUNDS GREW BY SIX POINT THREE TWO BILLION DOLLARS INCLUDING ONE POINT THREE FIVE BILLION DOLLARS IN INSTITUTIONAL MONEY QUOTE IT'S A SEASONAL PATTERN QUOTE SAID WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ASSETS OF MONEY FUNDS TYPICALLY RISE IN JANUARY AS INVESTORS DEPOSIT ANNUAL PENSION AND OTHER RETIREMENT PLAN CONTRIBUTIONS AND YEAR END BONUSES YIELDS OFTEN DECLINE BECAUSE OF A REDUCED SUPPLY OF SHORT TERM SECURITIES AT THE START OF THE YEAR WHICH PUSHES UP PRICES THIS IS MOST ACUTELY FELT BY TAX FREE FUNDS BECAUSE SHORT TERM MUNICIPAL SECURITIES ARE IN PARTICULARLY SHORT SUPPLY THE AVERAGE SEVEN DAY SIMPLE YIELD ON TAXABLE FUNDS SLID TO TWO POINT SEVEN ONE PERCENT FROM TWO POINT SEVEN FIVE PERCENT IN THE LATEST WEEK MONEY FUND REPORT SAID THE AVERAGE THIRTY DAY SIMPLE YIELD REMAINED AT TWO POINT SEVEN TWO PERCENT AND THE AVERAGE THIRTY DAY COMPOUND YIELD INCHED UP TO TWO POINT SEVEN SIX PERCENT FROM TWO POINT SEVEN FIVE PERCENT AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORT TERM CORPORATE I. O. U.S AND TREASURY BILLS LENGTHENED BY ONE DAY TO FIFTY NINE DAYS AVERAGE MATURITY OF THE TAX FREE FUNDS SHORTENED BY TWO DAYS TO FIFTY EIGHT DAYS THE ONLY MEMORY LOSS IN AL HUNT'S JANUARY SIXTH COLUMN IS HIS OWN QUOTE CLINTON ALLEGATIONS CAUSE G. O. P. MEMORY LOSS QUOTE OP ED POLITICS AND PEOPLE MR. HUNT ARGUES THAT MY REQUEST FOR THE APPOINTMENT OF A SPECIAL COUNSEL TO EXAMINE THE BURGEONING WHITEWATER CONTROVERSY IS SOMEHOW INCONSISTENT WITH A STATEMENT I MADE LAST NOVEMBER OPPOSING THE RE AUTHORIZATION OF THE INDEPENDENT COUNSEL ACT THE STATEMENT MR. HUNT CITES AS INCONSISTENT IS THIS WE OUGHT TO HAVE CONFIDENCE IN OUR NATION'S ATTORNEY GENERAL CONFIDENCE THAT SHE CAN CONDUCT CRIMINAL INVESTIGATIONS WITH INDEPENDENCE AND WITHOUT THE INTRUSION OF POLITICS NOW HERE'S WHAT MR. HUNT FORGOT THE VERY NEXT SENTENCES OF MY REMARKS MAKE THIS POINT IN FACT THE ATTORNEY GENERAL ALREADY HAS THE AUTHORITY TO APPOINT SPECIAL COUNSELS IN CASES THAT MERIT AN INDEPENDENT REVIEW THIS AUTHORITY EXISTS WITH OR WITHOUT AN INDEPENDENT COUNSEL STATUTE AND IT HAS BEEN INVOKED BY PAST ATTORNEYS GENERAL IT DIDN'T FIT MR. HUNT'S ARGUMENT BUT THE FACT IS I OPPOSED THE INDEPENDENT COUNSEL STATUTE IN PART BECAUSE THE ATTORNEY GENERAL ALREADY HAS THE AUTHORITY TO APPOINT SPECIAL COUNSELS THE SAME AUTHORITY REPUBLICANS DEMOCRATS AND EDITORIAL WRITERS FOR MANY OF THE NATION'S MOST RESPECTED NEWSPAPERS HAVE NOW URGED ATTORNEY GENERAL RENO TO USE MR. HUNT THEN SUGGESTS I WOULD BE CRITICAL OF ANY FINAL REPORT EXONERATING THE CLINTONS IN FACT I HAVE PROVIDED ATTORNEY GENERAL RENO WITH A LIST OF SEVEN INDIVIDUALS INCLUDING SUCH PROMINENT DEMOCRATS AS FORMER CARTER ADMINISTRATION ATTORNEYS GENERAL GRIFFIN BELL AND BENJAMIN CIVILETTI WHOM I BELIEVE WOULD BE SUITABLE FOR APPOINTMENT AS WHITEWATER SPECIAL COUNSEL ALL SEVEN INDIVIDUALS HAVE REPUTATIONS FOR INTEGRITY AND COMPETENCE THAT ARE UNASSAILABLE AND WHOSE CONCLUSIONS WOULDN'T BE SECOND GUESSED BY ME OR I BELIEVE MOST REPUBLICANS I HATE TO DISAPPOINT AL HUNT BUT I'LL HAVE TO DECLINE HIS NOMINATION FOR HIS POLITICAL INCONSISTENCY AWARD THE FACTS DISQUALIFY ME INVENTORIES SHRINK BUT MANUFACTURERS REMAIN NERVOUS ABOUT STOCKPILING SOME COMPANIES SAY THEY ARE WALKING A TIGHTROPE BETWEEN STOCKS AND DEMAND UNION CAMP IN NEW JERSEY ADMITS IT WOULD QUOTE FEEL MORE COMFORTABLE QUOTE IF IT REBUILT DEPLETED BOX INVENTORIES BUT MATERIALS ARE TIGHT AND IT DOESN'T THINK RECENT STRONG ORDERS WILL CONTINUE AUTO MAKERS AS USUAL ARE BUILDING CARS NOW FOR SPRING SALES BUT THEY AREN'T GOING OVERBOARD AT YEAR'S END G. M. HAD AN EIGHTY DAY SUPPLY OF CARS AND TRUCKS A BIT ABOVE THE INDUSTRY NORM OF SIXTY TO SEVENTY DAYS BUT A FAR CRY FROM THE NINETEEN EIGHTIES WHEN G. M. OFTEN CARRIED ONE HUNDRED DAYS' WORTH OF CARS THE NATION'S PURCHASING AGENTS SAID DECEMBER INVENTORIES DECLINED MORE STEEPLY THAN THE PREVIOUS MONTH MAGNETEK INCORPORATED A LOS ANGELES MAKER OF ELECTRICAL EQUIPMENT FOR ONE IS STILL WHITTLING IT DOESN'T TAKE VERY MUCH TO TIP THE ECONOMY BACK THE OTHER WAY SAYS A SPOKESMAN MORGAN STANLEY ECONOMIST STEPHEN ROACH SAYS ATTEMPTS TO CREATE JUST IN TIME INVENTORY MAY CURB BUT NOT KILL CYCLICAL REBUILDING OF STOCKS STONE CONTAINER CORPORATION IN CHICAGO SAYS BUSINESS IS EXCELLENT WHILE INVENTORIES ARE LOW TO ADEQUATE TAX FOR ART'S SAKE GIFTS OF ART MAY GET ANTICIPATORY I. R. S. RULINGS EVERY YEAR THE I. R. S. DUKES IT OUT WITH DONORS IT BELIEVES OVERSTATED THE VALUE OF ART GIFTS SOME SEVENTY FOUR MILLION DOLLARS IN ADJUSTMENTS WERE SOUGHT BY THE I. R. S. IN NINETEEN NINETY TWO BUT A NEW DIRECTIVE FROM THE NINETEEN NINETY THREE TAX BILL COMMITTEE MAY CHANGE THAT THE I. R. S. IS STUDYING THE FEASIBILITY OF ADVANCE VALUATION OR RULING ON A GIFT'S VALUE BEFORE A PIECE OF ART IS GIVEN THIS WOULD DEFINITELY BE BREAKING NEW GROUND AS FAR AS RULINGS GO SAYS AN I. R. S. SPOKESMAN THE I. R. S. REPORT WHICH WILL DEAL WITH QUESTIONS SUCH AS USER FEES FOR RULINGS MINIMUM VALUES AND NEUTRAL APPRAISERS IS DUE BY AUGUST IF THE CONCEPT FLIES IT MAY BE A WIN SITUATION FOR ALL SAYS NEW YORK ATTORNEY ROBERT PERSKY WHILE SOME SMALL GIFTS MAY BE DISCOURAGED BIG DONORS ARE LIKELY TO MIX AND MATCH PIECES TO ACCUMULATE A DESIRED DEDUCTION ACCOUNTANTS WON'T GET YELLED AT AND THE I. R. S. WON'T HAVE TO FIGHT FOR ADJUSTMENTS SAYS MR. PERSKY LOOT AND LEAVE A PLOY THAT FED THE S. AND L. CRISIS MAY FIND NEW PICKINGS INSURANCE PORTFOLIOS UNDERFUNDED PENSIONS AND HUD BACKED MORTGAGES COULD BE RIPE AREAS OF FINANCIAL QUOTE LOOTING QUOTE SAY TWO PROFESSORS AT THE UNIVERSITY OF CALIFORNIA BERKELEY KEY ELEMENTS FOR SUCH LOOTING ARE BIG SUMS OF MONEY WITH SOME GOVERNMENT GUARANTEE REAL OR IMPLIED A PAPER ON THE ECONOMIC UNDERWORLD OF BANKRUPTCY FOR PROFIT BY PROFESSORS PAUL ROMER AND GEORGE AKERLOF OF BERKELEY IS BEING PUBLISHED THIS WEEK BY THE BROOKINGS INSTITUTION BASED IN WASHINGTON SIMPLY PUT A LOOTER BUYS A FIRM RICH IN CURRENT FINANCIAL ASSETS IN A BUSINESS WHERE FUTURE LIABILITIES ARE TOUGH TO PIN DOWN LIKE HEALTH INSURANCE THE OWNER THEN REAPS THE CASH THROUGH DIVIDENDS SALARIES OR INSIDE DEALS WHILE SKEWING ACCOUNTING SO REGULATORS DON'T POUNCE LEAVING A SHELL TO DEAL WITH LIABILITIES WITH HEALTH CARE IN TRANSITION INSURANCE FIRMS MAY BE MORE WILLING TO SELL OUT AND CLIENTS MAY BE MORE LIKELY TO BUY MARGINAL INTERIM COVERAGE IT'S VERY EASY TO HIDE BANKRUPTCY WITH ACCOUNTING TRICKS SAYS DOCTOR ROMER GETTING G. A. T. T. GOT EASIER NOW THAT THE COMMERCE DEPARTMENT'S NATIONAL TECHNICAL INFORMATION SERVICE MARKETS COPIES VIA COMPUTER THE REPORT WAS SCARCE IN THE U. S. BECAUSE THE ORIGINAL PRINTING LAST MONTH IN GENEVA WAS CURTAILED WHEN PRESSES BROKE A GAMING THINK TANK IS PLANNED AS PART OF THE NEW NATIONAL INDIAN GAMING INSTITUTE AT THE COLLEGE OF THE MENOMINEE NATION IN KESHENA WISCONSIN THE INSTITUTE FUNDED PARTLY BY GAMING DOLLARS AIMS TO STRENGTHEN THE INDIAN GAMING INDUSTRY COMPANY SPONSORSHIP SPENDING IN NINETEEN NINETY FOUR COULD RISE FIFTEEN PERCENT TO FOUR POINT TWO FIVE BILLION DOLLARS SAYS THE INTERNATIONAL EVENTS GROUP IN CHICAGO SPONSORSHIP OF SPORTS IS LIKELY TO DOMINATE AS IN NINETEEN NINETY THREE WHEN EVENTS LIKE THE OLYMPICS AND WORLD CUP NINETY FOUR BOOSTED SPENDING MAKING WAVES ON THE LOW AND HIGH ENDS OVERALL BOAT SALES ARE STILL BECALMED PERSONAL WATERCRAFT THE SIT ON NOT IN CRAFT THAT LOOK MORE LIKE DOLPHINS THAN DINGHIES AND NEW JETBOATS WITH BUILT IN ENGINES PROBABLY WILL BE THE HOT TREND IN NINETEEN NINETY FOUR SAYS JILL KRUTICK OF SALOMON BROTHERS OVERALL SHE SEES ONLY MODEST IMPROVEMENT IN BOAT SALES AN INDUSTRY LEADER CANADIAN BOMBARDIER INCORPORATED'S SEA DOO WATERCRAFT UNIT TAKES ADVANTAGE OF A STRONG CURRENCY TO CUT U. S. RETAIL PRICES BY ABOUT FIVE PERCENT ON MODELS THAT RUN FROM FOUR THOUSAND FIVE HUNDRED DOLLARS TO SIX THOUSAND THREE HUNDRED DOLLARS THE MOVE IS A BID TO VEX JAPANESE COMPETITORS UNIT SALES OF PERSONAL WATERCRAFT ROSE THIRTY FIVE PERCENT IN NINETEEN NINETY THREE WHILE SALES OF BIG CRUISERS FELL FIVE PERCENT BUT JOHN OWENS EDITOR OF BOATING MAGAZINE SAYS THE REPEAL OF THE LUXURY TAX IS REKINDLING INTEREST IN BIG BOATS IN NEW JERSEY VIKING YACHT SAYS ORDERS ARE RISING FOR ITS VESSELS WHICH AVERAGE SEVEN HUNDRED FIFTY THOUSAND DOLLARS SO VIKING RECENTLY HIRED EIGHTY FIVE MORE WORKERS BRINGING ITS FORCE TO FOUR HUNDRED UP FROM A LOW OF SIXTY IN NINETEEN NINETY ONE BUT BELOW NINETEEN NINETY'S ONE THOUSAND FIVE HUNDRED WORKERS IF THE WINTER BOAT SHOWS GO WELL VIKING SAYS IT MAY ADD ANOTHER PRODUCTION LINE AND ONE HUNDRED WORKERS IN THE SPRING BRIEFS A SHOW PROPOSED FOR THE GOLF CHANNEL ABOUT DESIGNING BUILDING AND GROOMING TOP COURSES IS CALLED MAKING THE GRADE MID CONTINENT AGENCIES INCORPORATED A CHICAGO BILL COLLECTOR SAYS A WEST COAST VETERINARIAN WHO WAS BEHIND IN BILLS BLAMED A ROWDY GERMAN SHEPHERD WHO GOT LOOSE ONE NIGHT AND ATE THE OFFICE CHECKBOOK PRESIDENT DANIEL N. LARSON THIRTY NINE YEARS OLD WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER SUCCEEDING RICHARD E. STODDARD FORTY THREE WHO CONTINUES AS CHAIRMAN OF THE LAND DEVELOPMENT AND ENVIRONMENTAL SERVICES FIRM A GROUP OF ENVIRONMENTAL ORGANIZATIONS HAS FORMED OF ALL THINGS A LONG DISTANCE TELEPHONE COMPANY THE BOSTON COMPANY EARTH TONES PROMISES PRICES FIVE PERCENT TO TEN PERCENT LOWER THAN THE BASE RATES OF LEADING CARRIERS SUCH AS AMERICAN TELEPHONE AND TELEGRAPH COMPANY PROFITS FROM CUSTOMER CALLS WILL BE USED FOR GREEN CAUSES SUCH AS SAVING SPOTTED OWLS RESCUING THE RAIN FORESTS AND SPREADING THE ENVIRONMENTAL GOSPEL FOR NOW EARTH TONES IS A MERE SNAIL DARTER OF A BUSINESS WITH SIX HUNDRED CUSTOMERS NATIONWIDE SIGNED UP DURING A SIX MONTH TRIAL PERIOD BUT RECENTLY IT MAILED ONE HUNDRED THOUSAND BROCHURES SEEKING NEW CUSTOMERS FROM THE MEMBERSHIP LISTS OF ENVIRONMENTALLY FRIENDLY GROUPS OTHER PROMOTIONS ARE ALSO PLANNED ONE SLOGAN ON THE COMPANY'S PROMOTIONAL LITERATURE IS QUOTE DIALING FOR DOLPHINS QUOTE WE HAVE NO DEEP POCKETED INVESTORS OR HIGH PAID EXECUTIVES TO WORRY ABOUT SO PEOPLE CAN FEEL BETTER ABOUT PAYING A PHONE BILL SAID EARTH TONES DIRECTOR DEREK CRESSMAN ALL OF OUR PROFITS GO TO SOMETHING THEY BELIEVE IN BENSON CHILES A WISCONSIN ENVIRONMENTAL ACTIVIST SAID A LOT OF PEOPLE WANT TO HELP THE ENVIRONMENT BUT DON'T FEEL LIKE THEY HAVE THE TIME EARTH TONES GIVES YOU A WAY TO HELP JUST BY CALLING YOUR FRIENDS EARTH TONES' FOUNDERS INCLUDE TWELVE PUBLIC INTEREST RESEARCH GROUPS THE CONSUMER WATCHDOGS SPAWNED BY RALPH NADER YEARS AGO IT IS AIMING FOR AS MANY AS TEN THOUSAND CUSTOMERS IN A COUPLE YEARS MR. CRESSMAN SAID PROFITS WILL BE SPREAD AMONG A VARIETY OF CAUSES AND GROUPS INCLUDING THE RESEARCH GROUPS THEMSELVES AND OTHER GROUPS INVOLVED IN FORMING THE COMPANY SUCH AS THE NATIONAL ENVIRONMENTAL LAW CENTER EARTH DAY TWO THOUSAND AND PESTICIDE WATCH EARTH TONES WHICH BUYS LONG DISTANCE CAPACITY FROM ALLNET COMMUNICATIONS SERVICES INCORPORATED WILL MAIL BILLS DIRECTLY TO ITS CUSTOMERS ON RECYCLED PAPER OF COURSE BOARDING THEIR NINETEEN FIFTY TWO CONVAIR WITH POWERFUL UPDATED TURBOPROPS ALLIEDSIGNAL INCORPORATED'S ENGINEER WILLIAM WEIST AND HIS CREW OF FOUR SCIENTISTS AND PILOTS SUGGEST THEY MIGHT BE MISTAKEN FOR DRUG RUNNERS FLYING BENEATH SURVEILLANCE RADARS THIS MORNING AS USUAL THEY WILL FLY AT THREE HUNDRED FEET FIRST EASTWARD OVER THE OCEAN AND THEN IN A WIDE LOOP OVER THE EVERGLADES BUT THEY ARE THE HUNTERS NOT THE PURSUED AND THEIR QUARRY IS WIND SHEAR A VIOLENT AND UNPREDICTABLE CHANGE IN WIND DIRECTION AT LOW ALTITUDES WIND SHEAR CAN DRIVE A JETLINER LANDING OR TAKING OFF INTO THE GROUND SINCE NINETEEN SIXTY FOUR IT HAS CAUSED AT LEAST TWENTY SIX AIRCRAFT ACCIDENTS KILLING MORE THAN FIVE HUNDRED PEOPLE IN THE U. S. THE DEADLY PHENOMENON WAS IDENTIFIED ONLY TWO DECADES AGO IN THE LAST FIVE YEARS MANY AIRPORTS HAVE INSTALLED RADAR TO PREDICT WIND SHEAR BUT IT CAN TAKE AS LONG AS TWO MINUTES FOR AIR TRAFFIC CONTROLLERS TO RELAY A WIND SHEAR WARNING FROM A GROUND SYSTEM A PILOT MIGHT HAVE ONLY TEN SECONDS TO MANEUVER AWAY FROM A SUDDEN WIND SHEAR ACCORDING TO THE FEDERAL AVIATION ADMINISTRATION NOW THE ALLIEDSIGNAL TEAM HAS DEVELOPED AN ONBOARD DETECTION TECHNOLOGY THAT IT SAYS CAN ISSUE A WARNING FIFTY SECONDS BEFORE THE PILOT ENCOUNTERS A WIND SHEAR THE TEAM HAS BEEN DEVELOPING THE SYSTEM WHICH IS ESSENTIALLY A HIGHLY MODIFIED WEATHER RADAR SINCE OCTOBER NINETEEN NINETY ONE IT EXPECTS TO HAVE IT READY FOR INSTALLATION ON AIRLINERS EARLY THIS YEAR ON THIS MORNING'S FLIGHT THE SCIENTISTS ARE TESTING HOW WELL THEIR WARNING SYSTEM CAN DIFFERENTIATE WIND SHEAR FROM NONHAZARDOUS GUSTS OF WIND AND RAIN MOVING GROUND TRAFFIC AND OTHER LOW ALTITUDE PHENOMENA IF IT RAISES A FALSE ALARM OR MISSES A REAL WIND SHEAR THE ENGINEERS ANALYZE ALL THE DATA SURROUNDING THE ERROR THEN THEY TRY TO MODIFY THE SYSTEM'S ANALYTICAL SOFTWARE TO HONE ITS POWER OF RECOGNITION QUOTE WE'RE TEACHING THE SYSTEM TO MAKE PRECISE TRANSLATION QUOTE SAYS MR. WEIST THE CHIEF ENGINEER AS THE PLANE ROARS ALOFT MR. WEIST SAYS EVERY BIT OF INFORMATION THE PLANE'S RADAR PICKS UP AT LOW ALTITUDES ABOUT MOVING OR STATIONARY OBJECTS WILL BE IMPORTANT THE DEMANDS ON THE SYSTEM REQUIRE IT TO BE MUCH MORE SOPHISTICATED THAN STANDARD AIRCRAFT WEATHER RADAR WHICH MUST SEE ONLY RAIN SNOW OR HAIL TO DETECT A WIND SHEAR MR. WEIST'S RADAR MUST FILTER OUT A VARIETY OF CLUTTER FROM THE GROUND INCLUDING FLYING DUST MOVING VEHICLES MOISTURE IN THE WIND FLYING INSECTS AND BIRDS THE SYSTEM MUST RECOGNIZE AND DISCARD SUCH CLUTTER INFORMATION AND ISOLATE THE MOVEMENT THAT UNAMBIGUOUSLY REPRESENTS A WIND SHEAR THAT REQUIRES A MORE ADVANCED TRANSMITTER A MORE SENSITIVE RECEIVER AND A THOUSAND TIMES MORE COMPUTERIZED PROCESSING CAPACITY HE SAYS IT'S LIKE ASKING THE SYSTEM TO LISTEN FOR A WHISPER IN A ROCK CONCERT SAYS MR. WEIST A FORTY EIGHT YEAR OLD INTENSE BUT AFFABLE MAN WHO SOLD HI FI EQUIPMENT IN EAST LANSING MICHIGAN BEFORE JOINING ALLIEDSIGNAL THIRTEEN YEARS AGO ON THE PLANE A CLUSTER OF INSTRUMENTS THAT COLLECT AND ANALYZE SIGNALS ARE STACKED ON SHELVES THE INSTRUMENTS INCLUDE A MONITOR THAT DISPLAYS THE WEATHER PATTERN AND IN CASE OF A WIND SHEAR AHEAD WOULD DISPLAY THE LOCATION AND SIZE OF THE HAZARD SPEAKERS TO BLARE OUT VOICE SYNTHESIZED WIND SHEAR WARNINGS AND A COMPUTER SCREEN THAT PROJECTS IN ZIGZAG GRAPHS THE STRENGTH OF RADAR ECHOES RETURNING TO THE RECEIVER MR. WEIST KEEPS A CONSTANT EYE ON THE CONTINUOUS GRAPHS OR SPECTRA ON THE SCREEN IN FRONT OF RAY MCLAUGHLIN AN ENGINEER WHO IS MONITORING THE RETURNED SIGNALS THE GRAPHS ARE MOVING RAPIDLY FROM ONE END OF THE SCREEN TO THE OTHER IN CASCADING PEAKS AND VALLEYS THE SYSTEM IS ANALYZING FOUR MILLION PIECES OF INFORMATION PER SECOND SAYS MR. WEIST A SERIES OF SHARP AND NARROW PEAKS ON THE SCREEN IN FRONT OF MR. MCLAUGHLIN ATTRACTS MR. WEIST'S ATTENTION WE ARE PASSING OVER A LONG CONVOY OF TRUCKS ON I SEVENTY FIVE MR. MCLAUGHLIN EXPLAINS THE ENGINEERS SETTLE BACK TO THEIR ROUTINES THEY TURN KNOBS FLICK SWITCHES STARE AT GRAPHS SCRUTINIZE THE GREEN YELLOW AND RED DISPLAYS ON THE WEATHER RADAR AND COMMUNICATE WITH THE PILOT THE WEATHER IS TOO BEAUTIFUL TODAY TO PRODUCE ANY WIND SHEARS WHICH ARE UNCOMMON IN WINTER IN THE SUMMERS SAYS MR. WEIST THE TEAM HAS FLOWN AROUND WIND SHEARS OVER THE EVERGLADES WHERE THEY ARE COMMON AFTER THE WARNING SYSTEM PINPOINTED THEIR LOCATIONS THE TEAM HAS EVEN TESTED THE WARNING SYSTEM BY FLYING THROUGH WIND SHEARS IN ONE SUCH FORAY IN DENVER WHERE WIND SHEAR IS ALSO COMMON QUOTE THE PLANE DROPPED SIX HUNDRED FEET QUOTE THE PILOT WILLIAM CALLAN SAID LATER LUCKILY I WAS FLYING AT ONE THOUSAND FEET THE PLANE MAKES A LOOP AND TURNS WEST BACK TOWARD THE COAST HALFWAY OVER THE EVERGLADES STILL AT THREE HUNDRED FEET THE SHAPES MOVING ON THE MONITOR ATTRACT MR. WEIST'S ATTENTION HE UNBUCKLES HIS SEAT BELT AND LEANS OVER TO TAKE A CLOSE LOOK HE SCRUTINIZES THE GRAPHS FOR A FEW MINUTES HE CONSULTS WITH MR. MCLAUGHLIN WHO'S ALSO INTENTLY LOOKING AT THE GRAPHS AND THE WEATHER MONITOR ABOVE IT MR. WEIST LATER EXPLAINS THAT THE PATTERN LOOKED VERY SIMILAR TO SIGNALS BOUNCING BACK FROM A WIND SHEAR THE WEATHER CONDITION IN WHICH BURSTS OF CONCENTRATED COLD AIR DESCEND TO THE GROUND AND THEN SPREAD OUT HORIZONTALLY AND VIOLENTLY IN ALL DIRECTIONS A CLOSE STUDY REVEALED THAT THE GRAPH IN FACT REPRESENTED TRAFFIC MOVING IN DIFFERENT DIRECTIONS AT AN INTERSECTION ON THE HIGHWAY BELOW THE SIGNALS BOUNCING BACK FROM SUCH A PATTERN OF MOVING VEHICLES CAN MASQUERADE AS A WIND SHEAR SAYS MR. WEIST BUT HIS SYSTEM DIFFERENTIATES A WIND SHEAR FROM MOVING TRAFFIC BY MEASURING TARGET VELOCITY CHANGES OVER A CERTAIN RANGE IF THE CHANGE IS CONSTANT THE RETURNED SIGNALS REPRESENT A WIND SHEAR IF IT'S RANDOM IT'S ALMOST ALWAYS TRAFFIC SAYS MR. WEIST HE IS PLEASED THAT THE SYSTEM WASN'T FOOLED IF THE SYSTEM GIVES OUT FALSE ALARMS THE PILOT WILL EVENTUALLY IGNORE IT AND THAT WOULD BE DANGEROUS HE SAYS WITH ALL THE EXPERIENCE I HAVE IT TOOK ME THREE MINUTES TO RECOGNIZE THAT THE SPECTRA DIDN'T REPRESENT A WIND SHEAR THAT'S TOO LONG OUR DETECTION SYSTEM DID IT IN SECONDS QUOTE SAYS MR. WEIST THE FINAL PRODUCT FOR THE COCKPIT WILL BE A SMALL RECTANGULAR BOX WITH A WEATHER SCREEN THE PILOT WON'T HAVE TO INTERPRET ANY DATA JUST LISTEN TO THE WARNINGS IT SHOULD BE A NO BRAINER FOR THE PILOT HE SAYS RONALD W. TYSOE WHO SKILLFULLY BROUGHT WARRING CREDITORS TOGETHER TO PULL FEDERATED DEPARTMENT STORES INCORPORATED OUT OF BANKRUPTCY LAW PROCEEDINGS IS AT WORK AGAIN CANVASSING R. H. MACY AND COMPANY'S CREDITORS EVER SINCE FEDERATED BOUGHT A BIG CHUNK OF MACY'S SECURED DEBT TWO WEEKS AGO AND SAID IT WANTS TO MERGE WITH ITS RIVAL WHICH IS NOW OPERATING UNDER BANKRUPTCY COURT PROTECTION MR. TYSOE FEDERATED'S VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER HAS BEEN MAKING THE ROUNDS OF MACY CREDITORS TO DISCUSS FEDERATED'S PLAN BACK IN NINETEEN NINETY TWO HE ORCHESTRATED FEDERATED'S RELATIVELY SMOOTH AND SWIFT ABOUT TWENTY FOUR MONTHS EMERGENCE FROM BANKRUPTCY NOW ACCOMPANIED BY BANKRUPTCY LAWYER DAVID G. HEIMAN OF CLEVELAND BASED JONES DAY REAVIS AND POGUE WHICH REPRESENTS FEDERATED MR. TYSOE MAKES FEDERATED'S CASE WITHOUT GOING INTO DETAILS OF HOW IT WOULD CARRY OUT A MERGER MR. TYSOE DECLINED TO BE INTERVIEWED BUT MACY CREDITORS WHO HAVE MET HIM SAID HE MAKES CLEAR THAT FEDERATED BELIEVES IT CAN FORGE A BETTER REORGANIZATION PLAN THAN MACY CAN ON ITS OWN AND THAT THE CINCINNATI BASED RETAILER WANTS ALL OF MACY NOT JUST A PIECE AS SOME HAVE SPECULATED BUT MR. TYSOE'S MESSAGE IS QUOTE THEY WANT CONSENSUS FROM THE CREDITORS QUOTE SAID ROBERT MILLER AN ATTORNEY WITH BERLACK ISRAELS AND LIBERMAN WHO REPRESENTS HOLDERS OF ONE POINT THREE BILLION DOLLARS IN MACY BONDS DESPITE MACY'S COOL RECEPTION TO FEDERATED'S OVERTURES SOME MACY CREDITORS SAID THEY REST EASIER KNOWING THAT THE FORTY YEAR OLD MR. TYSOE IS SPEARHEADING FEDERATED'S PLANS HE'S NOT A GUNSLINGER NONE OF THE FEDERATED PEOPLE ARE SAID CHARLES LEEDS A PARTNER IN OMEGA ADVISORS INCORPORATED WHICH HOLDS BIG POSITIONS IN MACY'S MOST SENIOR BOND ISSUE THAT'S ONE REASON I AM NOT AS AFRAID AS I MIGHT OTHERWISE BE MR. TYSOE IS CONSIDERED AN IDEAL COUNTERPART TO FEDERATED'S HIGH PROFILE CHAIRMAN AND CHIEF EXECUTIVE ALLEN I. QUESTROM INDEED HIS UNFLAPPABLE STYLE COULD HELP FEDERATED IN WHAT IS CERTAIN TO BE A PROLONGED MERGER ATTEMPT HE'S VERY LEVELHEADED AND UNEMOTIONAL SAID JOHNSON REDBOOK ANALYST PETER N. SCHAEFFER I BELIEVE HE'S GOT AN EXACT PLAN DOWN TO WHAT THEY WOULD SELL OFF AND STORES THEY WOULD CLOSE IN A MERGER MR. TYSOE WAS INSTRUMENTAL IN THE ILL FATED CAMPEAU CORPORATION TAKEOVERS IN THE NINETEEN EIGHTIES AS A TOP EXECUTIVE UNDER REAL ESTATE DEVELOPER ROBERT CAMPEAU WITH WHOM MR. TYSOE HAS ACKNOWLEDGED HAVING A FATHER SON TYPE OF RELATIONSHIP HE HELPED CONSTRUCT BACK TO BACK HOSTILE TAKEOVERS OF ALLIED STORES CORPORATION AND FEDERATED IN DEBTFUELED DEALS IN NINETEEN NINETY FEDERATED AND ALLIED FILED THE LARGEST RETAIL BANKRUPTCY IN U. S. HISTORY AND THE CAMPEAU EMPIRE COLLAPSED BUT MR. TYSOE'S REPUTATION WAS UNSULLIED QUOTE HE WAS CAMPEAU'S RIGHT HAND MAN BUT ONE OF THE FEW GUYS TO SURVIVE THE DISASTER QUOTE SAID MR. SCHAEFFER FEDERATED REALIZED HE HAD A HIGH INTELLECTUAL LEVEL AND KEPT HIM BECAUSE IT WOULD BE EASIER TO GET OUT OF THE BANKRUPTCY WITH SOMEONE WHO KNEW THE INTIMATE DETAILS OF THE TAKEOVERS IN FEDERATED'S BANKRUPTCY THE VANCOUVER BRITISH COLUMBIA NATIVE DEFTLY DEALT WITH A HOST OF CREDITORS GROUPS TYSOE SAT DOWN WITH EACH CREDITOR GROUP ADDRESSED THEIR NEEDS AND MADE A CONSENSUAL PLAN THAT IN THE END EVERYBODY COULD LIVE WITH SAID KAHN CONSULTING'S MR. MONHEIT OUR GROUP WAS VERY HOSTILE TO HIM AT FIRST BECAUSE HE WAS CAMPEAU AND CAMPEAU SCREWED A LOT OF PEOPLE HE TURNED OUT TO BE HONORABLE THOUGH SOME CREDITORS ESPECIALLY BANKS FAVORED A BIG ASSET SALE MR. TYSOE WAS ABLE TO GET FEDERATED'S BANKS BONDHOLDERS AND SUPPLIERS TO DROP THEIR ORIGINAL CLAIMS LARGELY IN EXCHANGE FOR NEW DEBT CASH AND EQUITY IN A SLIMMED DOWN AND MORE PROFITABLE FEDERATED WIPING AWAY FIVE BILLION DOLLARS IN DEBT BUT MR. TYSOE IS IN A FAR DIFFERENT POSITION WITH MACY TYSOE'S NOT DRIVING THE BUS ULLMAN IS SAID MR. MONHEIT REFERRING TO MACY CHAIRMAN MYRON E. ULLMAN THE THIRD WHO WANTS TO KEEP HIS COMPANY INDEPENDENT YOU GOT YOUR LAUGH AT ANDNZEI SZULC THE POLISH TRANSLATOR AND AT THE POLISH LANGUAGE ITSELF WHAT A QUAINT UNSOPHISTICATED LITTLE LANGUAGE IT IS AND SO BIZARRE WHEN TRANSLATED LITERALLY INTO ENGLISH PAGE ONE DECEMBER FIRST YES YOU DID MENTION THAT THE TRANSLATIONS SOUND PERFECTLY FINE IN POLISH PERHAPS EVEN BETTER THAN THE ORIGINAL AND YOU DID IMPLY THAT THE LANGUAGE MIGHT BE QUITE BEAUTIFUL TO THOSE WHOSE EARS AND TONGUES ARE ACCUSTOMED TO IT PERHAPS MR. SZULC RATHER THAN STRUGGLING TO TURN WHAT NO DOUBT TO HIM IS A STRANGE AND GUTTURAL LANGUAGE INTO FLOWING AND CORRECT POLISH SHOULD TRANSLATE THE NOVELS IN A RIGID LITERAL MANNER JUST AS YOU HAVE DONE WITH THE POOR TRANSLATIONS OF POLISH AND GIVE THE POLES A HEARTY LAUGH THEY WOULD EXCLAIM NO DOUBT THAT ENGLISH MUST INDEED BE A DECIDEDLY RIDICULOUS AND GROTESQUE LANGUAGE YOUR ARTICLE ABOUT ANDNZEI SZULC STRUCK A DISCORDANT NOTE WITH ME REVERSE WORD ORDER IS NOT PECULIAR TO THE POLISH LANGUAGE THEREIN LIES THE DIFFICULTY IN A TRANSLATION THAT MUST BECOME A TRANSLITERATION IN ORDER TO BE UNDERSTOOD ONE MUST ALSO FACE IDIOMATIC EXPRESSION IN BOTH LANGUAGES BEING TRANSLATED IN MY WORK TRANSLATING CORRESPONDENCE TO AND FROM POLAND I AM CONSTANTLY FACED WITH THESE SITUATIONS IMAGINE MY SURPRISE TO FIND A QUOTE FROM MY STORY ABOUT GROWING UP ON WELFARE IN YOUR JANUARY SIXTH LEAD EDITORIAL QUOTE THE ROAD NOT TAKEN QUOTE IT WAS ESPECIALLY SURPRISING TO SEE THE QUOTE USED TO BUTTRESS AN ARGUMENT WITH WHICH I AM IN COMPLETE DISAGREEMENT MY FATHER WALKED OUT MANY BACK DOORS TO INSURE OUR WELL BEING KEY TO THAT WELL BEING WAS THE HEALTH INSURANCE THAN ANY FAMILY WITH CHILDREN KNOWS IS VITAL OUR BEING ON WELFARE WAS THE ONLY WAY FOR MY PARENTS TO BE SURE THAT THEIR FOUR CHILDREN COULD SEE A DOCTOR WHEN WE NEEDED ONE AND FOR SEVERAL YEARS WE NEEDED ONE QUITE A FEW TIMES MY FATHER'S PAINFUL CHOICE IS REPLICATED BY HUNDREDS OF THOUSANDS OF POOR WOMEN AND MEN WHO PUT THE SURVIVAL OF THEIR CHILDREN AHEAD OF THEIR PERSONAL RELATIONSHIPS PRESIDENT CLINTON'S FOCUS ON HEALTH CARE REFORM THAT INCLUDES UNIVERSAL IRREVOCABLE COVERAGE WILL MAKE A MAJOR DIFFERENCE TO FAMILIES ON WELFARE OR NOT HEALTH CARE THAT CAN BE DEPENDED ON WILL MAKE IT A LOT EASIER FOR WOMEN ON WELFARE TO GO TO WORK EVEN IF THAT WORK IS THE DEAD END MINIMUM WAGE WORK THEY HAVE BEEN OFFERED BEFORE FOR THE PAST YEAR ANNE WATTS AND A DOZEN OTHER ARTISTS HAVE BEEN QUOTE TAKING ART TO PLACES WHERE IT DOESN'T USUALLY GET TO GO QUOTE AND SHE SAYS QUOTE FINDING ART WHERE IT DOESN'T USUALLY GET FOUND QUOTE SPECIFICALLY NURSING HOMES WHERE PEOPLE WITH ALZHEIMER'S DISEASE LIVE MS. WATTS A THIRTY ONE YEAR OLD COMPOSER AND SINGER IN A ROCK AND ROLL BAND FIGURED THAT ARTISTS WRESTLING CREATIVE DEMONS MIGHT SHARE A COMMON BOND WITH LONELY PEOPLE STRUGGLING TO COMMUNICATE AT LIFE'S END ART MS. WATTS BELIEVES ENGAGES ALZHEIMER'S PATIENTS IN THE MOMENT AND MITIGATES THE LOSS OF SELF THE ACT OF CREATION HELPS THEM EXPRESS FEELINGS THAT ARE BEYOND WORDS WHEN MS. WATTS PROPOSED THE PROJECT TO MERIDIAN HEALTHCARE INCORPORATED A CORPORATE PROVIDER OF LONG TERM CARE SHE ENVISIONED SOMETHING QUITE DIFFERENT FROM CONVENTIONAL ART THERAPY WHERE GROUPS TYPICALLY ARE LED THROUGH A TASK SUCH AS COLORING INSTEAD INSTRUCTORS WOULD BE PROFESSIONALS WORKING ONE TO ONE WITH RESIDENTS WHO CHOOSE THEIR OWN ARTISTIC MEDIUM AND HAVE A FREE HAND THE KEY WAS GIVING THEM CONTROL MS. WATTS SAYS A SIMPLE ENOUGH IDEA PERHAPS BUT UNUSUAL IN THE CARE OF THE INSTITUTIONALIZED ELDERLY MORE THAN HALF OF THE U. S. NURSING HOME POPULATION NOW SUFFERS FROM ALZHEIMER'S DISEASE OR SOME OTHER FORM OF DEMENTIA AND MOST EXIST ON A REGIMEN OF SEDATION T. V. AND SOMETIMES PHYSICAL RESTRAINTS MERIDIAN WAS ALREADY TRYING AN APPROACH THAT DOVETAILED WITH MS. WATTS'S PLAN MERIDIAN A DIVISION OF GENESIS HEALTH VENTURES INCORPORATED HAS ESTABLISHED SPECIAL UNITS AT EIGHT OF ITS FACILITIES MAINLY IN THE BALTIMORE AREA WHERE DEMENTED RESIDENTS ARE GIVEN FORTY HOURS A WEEK OF STRUCTURED ACTIVITY IN THESE SPECIAL CARE UNITS JUST THREE PERCENT OF THE RESIDENTS REQUIRE PSYCHOACTIVE DRUGS TO MANAGE THEIR BEHAVIOR COMPARED WITH BETWEEN FORTY PERCENT AND SIXTY PERCENT OF MERIDIAN'S OTHER RESIDENTS NO ONE SUGGESTS THAT SPECIAL CARE HALTS THE PROGRESSION OF AN INCURABLE DISEASE BUT PEOPLE INVOLVED IN THE EFFORT ARE ENCOURAGED MOST HEALTH CARE WORKERS UNDERESTIMATE THE CAPACITIES OF DEMENTED PATIENTS SAYS DEBRA MCCONNELL MERIDIAN'S DIRECTOR OF ALZHEIMER SERVICES MERIDIAN AGREED TO PUT UP FORTY THOUSAND DOLLARS TO PAY MS. WATTS'S ARTISTS FOR THEIR TIME SEVENTY FIVE DOLLARS A SESSION SHE BROUGHT TOGETHER PAINTERS MUSICIANS COLLAGE ARTISTS A TRINIDADIAN CERAMICIST AND A FILIPINO QUILT MAKER SOME HAD SPIKED HAIR OR PURPLE FINGERNAILS LEATHER JACKETS DREADLOCKS PEOPLE ON THE FRINGE ABOUT TO MEET ANOTHER OLDER FRINGE GROUP IMPROBABLY THEY CLICKED SHERWIN MARK A JEWISH ARTIST FROM SOUTH AFRICA FOUND HIMSELF PAIRED WITH A GERMAN WOMAN WHO HAD LIVED IN BERLIN DURING WORLD WAR TWO JAWAD ABDULLAH OF TRINIDAD HELPED LOUIS MUSIC A FORMER MECHANIC FROM NEW JERSEY SCULPT CAR PARTS FROM CLAY COMPLETING A BATCH MR. MUSIC TOLD HIS TUTOR WITH A TWINKLE I'M NOT GOING TO CHARGE YOU ANYTHING FOR THESE MS. WATTS IS IMPRESSED WITH THE GIVE AND TAKE NURSING HOME ART HAS GOT THIS RANDOM SELFLESS FREEDOM THAT I'VE SEEN ARTISTS STRIVE THEIR WHOLE LIVES TO ACHIEVE SHE SAYS THUS IN SOME WAYS THE ELDERLY BECAME THE ARTISTS' MENTORS QUOTE IT HAS OPENED MY SCOPE QUOTE SAYS THIRTY YEAR OLD BALTIMORE ARTIST LYLE KISSACK HE SEES CONTACT WITH HIS ELDERLY STUDENTS AS A WAY TO REFILL TO GET HUMAN AGAIN MR. KISSACK LIKENS HIS WORK WITH ONE EIGHTY YEAR OLD WOMAN TO ARCHAEOLOGY WE'RE ROOTING THROUGH MEMORY TO THE PAST HE SAYS WHEN SHE HAS TROUBLE ARTICULATING AN IDEA AND BEGINS TO FADE OFF I TRY TO REDIRECT THAT INTO HER PAINTING HE SAYS SO SURE ARE HER BRUSH STROKES THAT THE NURSING HOME STAFF FINDS IT HARD TO REMEMBER THAT WHEN SHE WAS ADMITTED A FEW MONTHS AGO SHE HAD TROUBLE MANAGING A KNIFE AND FORK AFTER A RECENT THREE HOUR PAINTING SESSION SHE WAS TIRED BUT ELATED I'M PERFECT SHE SAID AGAIN AND AGAIN LAUGHING LATER THAT DAY AT MERIDIAN'S BRIGHTWOOD FACILITY NORTH OF BALTIMORE LOVISAH LOVEY BUMGARNER A SILVER HAIRED BARBARA BUSH LOOK ALIKE IN PEARLS DROPPED WEARILY INTO A CHAIR BEFORE A BLANK CANVAS BUT AS SHE BECAME ENGROSSED THE NINETY FIVE YEAR OLD FORMER NURSE STOOD WITHOUT THE HELP OF HER CANE LAYING ON AN INTRICATE COMPOSITION OF BRIGHTLY COLORED LINES SHE HAS COMPLETED FIFTEEN WORKS WHEN INTRODUCED AS A PAINTER MRS. BUMGARNER SAYS QUOTE YES I AM AN ARTIST QUOTE ART SEEMS TO HELP ALLAY THE TERRIBLE FEARS OF ELDERLY RESIDENTS GRACE GUNNARSSON AN EIGHTY FIVE YEAR OLD ALZHEIMER'S PATIENT IS TORMENTED BY THE COMMON DELUSION THAT HER CHILDREN ARE SMALL ALONE AND IN NEED OF HER WATCHING CHILDREN PLAY FROM A WINDOW AT THE MERIDIAN HOME IN DUNDALK MARYLAND WHERE SHE LIVES GRACE WILL SAY THOSE AREN'T MINE BUT I KNOW THEY'RE OUT THERE THE OBSESSION SEEMS TO RECEDE WHEN MRS. GUNNARSSON PAINTS ACCORDING TO BARBARA FLEMING A RECREATION THERAPIST AT THE RESIDENCE WHEN SHE'S WITH THE ARTISTS SHE IS AN INTELLIGENT FUNCTIONAL WOMAN SHE SAYS MRS. GUNNARSSON WHO WORKED FOR FORMER VICE PRESIDENT SPIRO AGNEW WHEN HE WAS A MARYLAND POLITICIAN SOMETIMES JOKES THAT SHE IS GRANDMA MOSES HER WORK IS REPRESENTATIONAL USUALLY SCENES OF HER CHILDHOOD ON A FARM WHILE PAINTING A LILAC BUSH SHE IDENTIFIED BY NAME ITS VARIOUS BOTANICAL PARTS POINTING TO HER FRAMED WORK SHE SAYS I DID THAT GRACE THAT'S ME WHEN MULTIMEDIA ARTIST CATHY LEAYCRAFT FIRST VENTURED INTO A NURSING HOME SHE SAYS I WAS HORRIFIED THINKING WHY WOULD THEY WANT TO BE ALIVE BUT AFTER A WHILE I SAW THEY WEREN'T REALLY READY TO DIE YET THERE WERE STILL THINGS GOING ON SPIRITUAL KINDS OF THINGS QUOTE THE GENESIS OF MS. WATTS'S PROJECT IS A STORY IN ITSELF SHE WAS PLAYING GIGS ON EMBASSY ROW IN WASHINGTON LAUNCHING AN ALTERNATIVE GALLERY AND VOLUNTEERING IN A BALTIMORE NURSING HOME WHEN IN NINETEEN EIGHTY EIGHT SHE MET JOHN ENGLEHART THEN EIGHTY ONE HE HAD BEEN INSTITUTIONALIZED SINCE NINETEEN EIGHTEEN WHEN HE WAS ELEVEN DIAGNOSED RETARDED AND SCHIZOPHRENIC HEAVILY DOSED WITH THORAZINE HE HAD NOT BEEN HEARD TO SPEAK IN FIFTEEN YEARS HE WAS THIS HORRIFYING GNOMISH CREATURE SHE RECALLS HE FASCINATED ME ON ONE OF HER DAILY VISITS MS. WATTS SLIPPED MR. ENGLEHART PAPER AND A FELT MARKER HE PRODUCED AN INTRICATE DRAWING OF A WINDMILL AND CROAKED OUT THE FIRST REAL WORD HE HAD BEEN HEARD TO SPEAK WINDMILL SCORES OF PAUL KLEE LIKE DRAWINGS AND PAINTINGS FOLLOWED SPEECH TOO BEGAN TO TUMBLE OUT BY THE TIME HE DIED A FEW MONTHS SHY OF HIS EIGHTY FIFTH BIRTHDAY MR. ENGLEHART HAD ESTABLISHED HIMSELF AS A RECOGNIZED ARTIST SELLING A NUMBER OF HIS WORKS AT A ONE MAN SHOW IN BALTIMORE THAT WAS CRITICALLY ACCLAIMED HE GOT A THREE COLUMN OBITUARY IN THE BALTIMORE SUN THOUGH MR. ENGLEHART'S AWAKENING WAS EXCEPTIONAL MS. WATTS SAYS ALL HER AGED STUDENTS HAVE BEEN PASSIONATE ALL THEIR WORK DISTINCTIVE MS. WATTS WHO SAYS WORKING WITH THE ELDERLY HAS HELPED HER BECOME LESS SELFCONSCIOUS IN HER OWN MUSIC NOW PLANS TO BRING IN ART STUDENTS AS WELL AS PROFESSIONALS NONETHELESS SHE IS SKEPTICAL ABOUT THE PACE OF CHANGE IN INSTITUTIONS IT'S SCARY FOR ALL OF US SHE SAYS TO THINK OF A FUTURE IN A LONELY PLACE WHERE WE AREN'T GIVEN THE OPPORTUNITY TO DO OUR WORK AND WHERE NO ONE WANTS TO HEAR WHAT WE HAVE TO SAY BEFORE WE DIE GET READY FOR SPRINT TO COME OUT SLUGGING WITH NEW FINANCIAL MUSCLE IN THE DARWINIAN FIGHT FOR SURVIVAL AMONG TELECOMMUNICATIONS COMPANIES ACCORDING TO THE BUZZ ON WALL STREET SPRINT HAS DECIDED THAT IF IT CAN'T BEAT THE COMPETITION IT SHOULD JOIN 'EM SO THE SPECULATION GOES THE COMPANY IS ABOUT TO ALLY ITSELF WITH A PARTNER OR SELL OFF A CHUNK OF ITS STOCK TO SHORE UP ITS BALANCE SHEET AND MAKE IT A STRONGER COMPETITOR IN THE BREWING BATTLE YESTERDAY THE STOCK CLOSED AT THIRTY FOUR AND THREE QUARTERS UP ONE HALF ON VOLUME OF MORE THAN ONE POINT THREE MILLION SHARES OR MORE THAN TWICE THE AVERAGE DAILY VOLUME A SPRINT SPOKESMAN DECLINES TO COMMENT ABOUT THE POSSIBILITY OF EITHER A STOCK SALE OR A PENDING PARTNERSHIP BUT THAT HASN'T STOPPED INVESTORS FROM SINGLING OUT FAVORITE CANDIDATES FOR A SPRINT ALLIANCE BLAKE BATH AN ANALYST AT SANFORD C. BERNSTEIN AND COMPANY NAMED UNISOURCE A CONSORTIUM OF SPANISH SWISS DUTCH AND SWEDISH PHONE COMPANIES AS HIS CHOICE IN COMMENTS TO CLIENTS YESTERDAY MR. BATH ALSO UPGRADED SPRINT'S STOCK TO QUOTE OUTPERFORM QUOTE IN PART BECAUSE HE BELIEVES SUCH A PARTNERSHIP AGREEMENT WILL BE ANNOUNCED SOON HE SAID AN ANNOUNCEMENT COULD COME BEFORE FEBRUARY SIXTEENTH WHEN THE COMPANY HAS SCHEDULED A MEETING WITH ANALYSTS MR. BATH SAYS HIS RECENT DISCUSSIONS WITH SPRINT MANAGEMENT IMPLIED THAT ISSUES REGARDING SPRINT'S LIMITED INTERNATIONAL PARTNERSHIPS AND LIMITED FINANCIAL FLEXIBILITY COULD BE ADDRESSED SHORTLY CONCEIVABLY PRIOR TO SPRINT'S ANALYST MEETING FEBRUARY SIXTEENTH THE FIRST SUCH MEETING IN SEVERAL YEARS SPRINT'S SIXTY PERCENT DEBT TO CAPITAL RATIO IS CONSIDERED A PARTICULAR HANDICAP IN FACING COMPETITORS ON THE INFORMATION SUPERHIGHWAY SPRINT PRESIDENT RON LEMAY INDICATED THAT INTERNATIONAL AGREEMENTS WOULD BE AMONG THE COMPANY'S TOP FEW PRIORITIES AND ACKNOWLEDGED THE NEED FOR ADDITIONAL FINANCIAL BACKING TO PURSUE WIRELESS ACCESS AND INTERNATIONAL OPPORTUNITIES MR. BATH SAID IN COMMENTS TO CLIENTS YESTERDAY OTHER INVESTORS NAMED MOTOROLA AND ITALIAN PHONE COMPANY STET AS POSSIBLE INVESTORS OR PARTNERS FOR SPRINT BASED ON RECENT SIMILAR DEALS BETWEEN U. S. LONG DISTANCE COMPANIES INCLUDING BRITISH TELECOMMUNICATIONS' INVESTMENT IN M. C. I. SUCH A LINKUP COULD BOOST SPRINT'S STOCK SOME ANALYSTS FIGURE A STAKE IN SPRINT COULD GO FOR AROUND FORTY DOLLARS A SHARE A NEARLY THIRTY PERCENT PREMIUM TO YESTERDAY'S CLOSING PRICE IMPLYING THE STOCK MAY BE A BARGAIN SPRINT HAS LONG BEEN VIEWED AMONG INVESTORS AS AN ALSO RAN IN THE LONG DISTANCE BUSINESS NO ONE HAS GIVEN THEM CREDIT FOR DOING ANYTHING RIGHT SAYS PAUL RISSMAN AN ANALYST AT ALLIANCE CAPITAL MANAGEMENT AS A RESULT SPRINT'S STOCK PRICE HAS TRADED AT A MULTIPLE BELOW THOSE OF A. T. AND T. AND M. C. I. SPRINT HAS SUFFERED FROM A BIG IMAGE PROBLEM AMONG INVESTORS SINCE IT ANNOUNCED ITS MERGER WITH CENTEL IN NINETEEN NINETY ONE AT THE BEGINNING OF NINETEEN NINETY THREE IT LOOKED LIKE SPRINT'S RESULTS WERE FINALLY IMPROVING BUT IN THE THIRD QUARTER REVENUE GROWTH SLOWED AND THE STOCK TOOK ANOTHER FALL BUT SPRINT HAS LOOKED PARTICULARLY LEFT OUT IN RECENT MONTHS AS RIVALS' STRATEGIES DOMINATED THE HEADLINES A. T. AND T. MADE NEWS WITH ITS PLANNED TWELVE POINT SIX BILLION DOLLAR MERGER WITH MCCAW TELECOMMUNICATIONS NOT TO MENTION NUMEROUS DEALS IT SIGNED WITH OVERSEAS TELECOMMUNICATIONS CONCERNS MEANWHILE M. C. I. TRUMPETED ITS NEW CAPITAL INFUSION FROM BRITISH TELECOMMUNICATIONS BOTH TRANSACTIONS ARE AIMED AT MAKING THE LONG DISTANCE COMPANIES MORE COMPETITIVE AS REGULATORS HAVE ALLOWED NEW RIVALS INTO THE TELECOMMUNICATIONS BUSINESSES THE BIGGEST CLOUD OVER SPRINT'S STOCK HAS BEEN THE COMPANY'S INABILITY TO GAIN MARKET SHARE AT THE SAME RATE AS M. C. I. WHILE SPRINT'S SHARE OF THE U. S. LONG DISTANCE TELEPHONE MARKET HAS EDGED UP ABOUT ONE QUARTER PERCENTAGE POINT A YEAR M. C. I. HAS BEEN EXPANDING ITS SHARE AT AN ANNUAL RATE OF ONE HALF TO ONE PERCENTAGE POINT SAYS MR. RISSMAN HOOKING UP WITH A NEW PARTNER COULD MAKE SPRINT'S LACKLUSTER PERFORMANCE IRRELEVANT TO INVESTORS IF THERE IS A STRATEGIC PARTNER IT COULD CHANGE INVESTORS' VIEW ESPECIALLY IF THAT PARTNER IS WILLING TO PAY A GOOD PREMIUM FOR A SPRINT STAKE SAYS JOHN WEBER A TELECOMMUNICATIONS ANALYST AT PUTNAM INVESTMENT MANAGEMENT WHO IS RECOMMENDING SPRINT TO PORTFOLIO MANAGERS AT PUTNAM AND EVEN WITHOUT A DEAL SPRINT'S STOCK HAS OTHER FACTORS GOING FOR IT INVESTORS SAY THE COMPANY'S LONG DISTANCE BUSINESS IS DOING BETTER THAN EXPECTED MR. BATH SAYS AND PROFIT MARGINS ARE IMPROVING TOO PARTLY BECAUSE A. T. AND T. HAS RAISED PRICES HE SAYS IF AS WE EXPECT SPRINT FOLLOWS A. T. AND T.'S MOST RECENT PRICE INCREASE RESULTS COULD BE PARTICULARLY STRONG IN THE FIRST HALF OF NINETEEN NINETY FOUR HE SAYS MR. RISSMAN ESTIMATES THAT EVERY PERCENTAGE POINT INCREASE IN SPRINT'S OPERATING MARGIN WOULD INCREASE EARNINGS THREE PERCENT TO FOUR PERCENT A YEAR MEANWHILE AS CHRONIC QUOTE COLLECT QUOTE CALLERS ALREADY KNOW SPRINT LIKE ITS RIVALS IS SAVING MONEY BY USING AUTOMATED QUOTE VOICE ACTIVATED SYSTEMS QUOTE TO REPLACE HUMAN OPERATORS FOR COLLECT CALLS RATHER THAN TELLING AN OPERATOR THEIR NAMES CALLERS NOW SPEAK INTO A VOICE ACTIVATED SYSTEM AND THE PEOPLE BEING CALLED PRESS A NUMBER ON THEIR TOUCH TONE PHONES TO ACCEPT THE CHARGES AN ANNOYING CHANGE TO CUSTOMERS PERHAPS BUT SUCH STEPS ARE SWEET BEEPS TO INVESTORS' EARS NATIONAL WESTMINSTER BANK P. L. C. BECAME THE SECOND U. K. RETAIL BANK THIS WEEK TO ANNOUNCE SWEEPING JOB CUTS WITH REDUCTIONS EXPECTED TO TOTAL ABOUT FOUR THOUSAND TWO HUNDRED OR FOUR POINT SIX PERCENT OF ITS WORK FORCE THIS YEAR NATWEST BASED IN LONDON HAS AROUND TWO THOUSAND SEVEN HUNDRED BRANCHES MORE THAN ANY OF ITS RIVALS THE BANK HAS CUT FIFTEEN THOUSAND JOBS SINCE NINETEEN NINETY BRINGING ITS CURRENT WORK FORCE TO ABOUT NINETY TWO THOUSAND SIX HUNDRED WORLD WIDE SOME THREE THOUSAND POSITIONS WERE ELIMINATED LAST YEAR IN BRITAIN ON MONDAY BARCLAYS BANK SAID IT WOULD REDUCE ITS STAFF BY THREE THOUSAND OVER THE NEXT TWO YEARS THE CUTS CAME ON TOP OF REDUCTIONS OF EIGHTEEN THOUSAND POSITIONS OVER A FIVE YEAR PERIOD THAT BEGAN IN NINETEEN NINETY ONE THE FEDERAL NATIONAL MORTGAGE ASSOCIATION KNOWN AS FANNIE MAE SAID FOURTH QUARTER NET INCOME CLIMBED SIXTEEN PERCENT TO FOUR HUNDRED NINETY THREE POINT SIX MILLION DOLLARS OR ONE DOLLAR AND EIGHTY CENTS A SHARE ON STRONG GROWTH IN ITS MORTGAGE PORTFOLIO THAT COMPARES WITH NET INCOME OF FOUR HUNDRED TWENTY SIX POINT FOUR MILLION DOLLARS OR ONE DOLLAR AND FIFTY FIVE CENTS A SHARE A YEAR EARLIER THE GOVERNMENT SPONSORED CONCERN WHICH IS BASED IN WASHINGTON SAID ITS NET INTEREST INCOME ON THE LOANS IT KEEPS FOR INVESTMENT GREW SEVENTEEN PERCENT TO SIX HUNDRED THIRTY FIVE POINT THREE MILLION DOLLARS FROM FIVE HUNDRED FORTY FOUR POINT TWO MILLION DOLLARS A YEAR EARLIER THE LATEST QUARTER INCLUDED A THIRTY EIGHT POINT EIGHT MILLION DOLLAR CHARGE FOR THE REPURCHASE OF DEBT FOR THE YEAR NET INCOME ROSE FIFTEEN PERCENT TO ONE POINT EIGHT SEVEN BILLION DOLLARS OR SIX DOLLARS AND EIGHTY TWO CENTS A SHARE FROM ONE POINT SIX TWO BILLION DOLLARS OR FIVE DOLLARS AND NINETY ONE CENTS A SHARE CONDE NAST PUBLICATIONS INCORPORATED NAMED AS PRESIDENT STEVEN T. FLORIO WHO IS CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NEW YORKER WHILE MOST OF THE FOURTEEN MAGAZINES IN THE CONDE NAST STABLE ARE SAID TO BE QUITE SUCCESSFUL MANY OF THE SENIOR MANAGERS ARE LONG TERM VETERANS APPROACHING RETIREMENT AGE MR. FLORIO FORTY FOUR YEARS OLD WILL BE SUCCEEDING BERNARD H. LESER SIXTY EIGHT WHO HAS BEEN ASSOCIATED WITH CONDE NAST SINCE NINETEEN FIFTY NINE WHEN HE FOUNDED THE AUSTRALIAN EDITION OF VOGUE ANOTHER TOP EXECUTIVE ALEXANDER LIBERMAN REMAINS EDITORIAL DIRECTOR OF CONDE NAST AT AGE EIGHTY MR. FLORIO WILL TAKE OVER AS PRESIDENT JUNE FIRST AT WHICH TIME MR. LESER WILL BECOME CHAIRMAN OF PACIFIC OPERATIONS FOR CONDE NAST A NEW POST MR. LESER WILL MOVE TO SYNDEY AUSTRALIA AND OVERSEE EXPANSION OF THE MAGAZINE GROUP THROUGHOUT THE PACIFIC THE COMPANY'S OVERSEAS EDITIONS HAVE MOSTLY BEEN EUROPEAN ONES TWO YEARS AGO MR. LESER ARRANGED FOR A LICENSEE IN JAPAN TO PUBLISH CONDE NAST'S MEN'S MAGAZINE G. Q. WHICH HAS BEEN VERY SUCCESSFUL CONDE NAST IS A UNIT OF ADVANCE PUBLICATIONS INCORPORATED THE NEWHOUSE FAMILY'S PRIVATE PUBLISHING EMPIRE S. I. QUOTE SI QUOTE NEWHOUSE JUNIOR CHAIRMAN OF CONDE NAST SAID MR. FLORIO QUOTE HAS DONE A BRILLIANT JOB QUOTE DURING HIS NINE YEARS AT THE NEW YORKER BUT DIDN'T PROVIDE DETAILS OF WHAT HE EXPECTS FROM HIM AS PRESIDENT THIS IS A VERY SMOOTH RUNNING COMPANY MR. NEWHOUSE SAID I WANT STEVE TO SURPRISE ME THROUGHOUT THE INDUSTRY THE EXPECTATION IS THAT MR. FLORIO WILL SHAKE THINGS UP AT CONDE NAST THAT MAY INCLUDE A SHUFFLING OF PUBLISHERS AND A BRANCHING OUT INTO SOME NEW BUSINESSES ALEXANDRA PENNEY EDITOR OF CONDE NAST'S SELF MAGZINE SAID THIS IS THE BEGINNING OF A NEW WORLD ORDER HERE SI NEWHOUSE SAYS HE FELT IT WAS TIME FOR THE YOUNGER GENERATION MAGAZINE CONSULTANT MARTIN WALKER SAID I THINK STEVE FLORIO WILL MAKE A MUCH MORE AGGRESSIVE PRESIDENT AND A MORE VOCAL INDUSTRY SPOKESMAN THAN MR. LESER I THINK CONDE NAST IS THE ONLY MAGAZINE GROUP THAT DOESN'T DISCOUNT THEIR AD RATES BUT THE BUSINESS SIDE IS GETTING TOUGHER FOR EVERYBODY QUOTE MR. FLORIO A STYLISH HYPERBOLIC SIXFOOTER WHO HAS WORKED AT CONDE NAST FOR FIFTEEN YEARS SAYS HE'S ECSTATIC ABOUT THE APPOINTMENT TO USE A SPORTS ANALOGY THIS IS LIKE RUNNING THE YANKEES WHEN THEY REALLY WERE THE YANKEES HE SAID AN ARDENT FAN OF HIS PORTABLE POWERBOOK COMPUTER MR. FLORIO SAID HIS PLANS INCLUDE TAKING THE COMPANY INTO CUTTING EDGE TECHNOLOGY I THINK THIS COMPANY HAS FABULOUS CONTENT AND WE CAN DOMINATE THE INFORMATION HIGHWAY AMONG HIS OTHER PRIORITIES HELPING CONDE NAST MAGAZINES THAT HAVE ADVERTISING OR POSITIONING PROBLEMS INCREASING THE PROFITS AND PRESENCE OF CONDE NAST'S LITTLE KNOWN SPORTS DIVISION STREET AND SMITH MAGAZINES AND ADDING LINE EXTENSIONS SUCH AS THE HALLMARK GREETING CARDS HE LICENSED BASED ON NEW YORKER CARTOONS ALTHOUGH THE EDITORIAL CHANGES OF TINA BROWN ARE GIVEN MORE CREDIT THAN MR. FLORIO'S EFFORTS AD PAGES AT THE NEW YORKER ROSE ABOUT TWELVE POINT FIVE PERCENT IN NINETEEN NINETY THREE TO TWO THOUSAND TWO HUNDRED FIFTY THREE PAGES CONDE NAST SAID IT WILL NAME MR. FLORIO'S BROTHER THOMAS A. FLORIO THIRTY EIGHT CURRENTLY THE PUBLISHER OF CONDE NAST TRAVELER TO THE POST OF PUBLISHER OF THE NEW YORKER HE WON'T ASSUME HIS BROTHER'S TITLES OF PRESIDENT AND CHIEF EXECUTIVE OFFICER THE CURRENT PUBLISHER OF THE NEW YORKER IS LYNN HEILER WHOSE FUTURE JOB HASN'T BEEN SETTLED THE COMPANY SAID PUBLIC TELEVISION HAS BEEN VERY VERY GOOD TO LARRY LANCIT AND CECILY TRUETT ON THE STRENGTH OF PRODUCING ONE ACCLAIMED PUBLIC BROADCASTING SERVICE CHILDREN'S SERIES QUOTE READING RAINBOW QUOTE PLUS P. B. S.'S COMMITMENT TO BROADCAST ANOTHER NEXT YEAR THE HUSBAND AND WIFE TEAM TOOK THEIR COMPANY LANCIT MEDIA PRODUCTIONS LIMITED PUBLIC LANCIT CURRENTLY VALUED AT EIGHTY MILLION DOLLARS AND ITS CO PRODUCER PUBLIC STATION KCET T. V. IN LOS ANGELES ALREADY HAVE SIGNED A THREE POINT ONE MILLION DOLLAR DEAL WITH SONY CORPORATION AND A ONE POINT FIVE MILLION DOLLAR DEAL WITH FISHER PRICE INCORPORATED TO MARKET MERCHANDISE SPINOFFS FROM THEIR NEW CHILDREN'S SHOW THE PUZZLEWORKS MEANWHILE THE CONDUIT FOR ALL THIS COMMERCIAL SUCCESS THE PUBLIC TELEVISION SYSTEM LIMPS ALONG ON THE SHABBY GENTEEL PRESTIGE OF AN INSTITUTION UNTAINTED BY PROFITS BUT DEPENDENT ON THE KINDNESS OF STRANGERS TO GET ALONG SOME PEOPLE CALL PUBLIC T. V. ELITIST SOME SEE IT CONTROLLED BY LIBERALS OTHERS BY CONSERVATIVES AND BIG BUSINESS STILL OTHERS SEE IT AS A WASTEFUL USE OF TWO HUNDRED SEVENTY FIVE MILLION DOLLARS IN TAXPAYERS' MONEY IN A WORLD OF PROLIFERATING CABLE CHANNELS IN FISCAL NINETEEN NINETY ONE THE CORPORATION FOR PUBLIC BROADCASTING REAPED THREE HUNDRED SEVENTEEN THOUSAND DOLLARS IN PRODUCT LICENSING FEES FOR ITS ENTIRE LINEUP OF SHOWS THAT INCLUDES SUCH MERCHANDISING BLOCKBUSTERS AS SHINING TIME STATION HOME OF THOMAS THE TANK ENGINE THAT AMOUNT A RECORD FOR C. P. B. BUT A PITTANCE IN THE WORLD OF PRODUCT LICENSING WAS THE RESULT OF POORLY DESIGNED CONTRACTS INTENDED TO AVOID ANY HINT OF PROFIT MAKING THIS IS THE DILEMMA THAT STYMIES PUBLIC TELEVISION NEVER MORE SO THAN TODAY PUBLIC TELEVISION IS SUPPOSED TO PROVIDE NONCOMMERCIAL ALTERNATIVE PROGRAMMING YET BE SELF SUSTAINING BUT DOES THE PURSUIT OF SHOWS THAT ATTRACT SUBSCRIBER DOLLARS KEEP LESS BANKABLE SHOWS OFF THE AIR MEANWHILE WHEN A PROGRAM LIKE BARNEY AND FRIENDS PROVES WILDLY POPULAR WHAT BUREAUCRATIC QUAGMIRE OR MISGUIDED SENSE OF MISSION KEEPS PUBLIC T. V. FROM CASHING IN ON THE RESULTING SOLID GOLD FRANCHISE SUCH QUESTIONS PERCOLATE FROM THE LOFTY CORRIDORS OF THE C. P. B. TO THE LOWLIEST SMALL TOWN PUBLIC T. V. STATION MANAGER'S DESK AS A TELECOMMUNICATIONS REVOLUTION SWIRLS AROUND IT PUBLIC TELEVISION IS GROPING TO JUSTIFY ITS EXISTENCE TO A RISING CHORUS OF CRITICS SHORE UP ITS FUNDING BASE RECAPTURE DEFECTING VIEWERS AND FIND A SUITABLE ROLE FOR ITSELF IN THE FAST APPROACHING MULTICHANNEL T. V. FUTURE WE HAVE TO GET READY SO WE'RE NOT LEFT IN THE DUST SAYS ROBERT OTTENHOFF P. B. S.'S CHIEF OPERATING OFFICER IN ONE SIGN OF TUMULTUOUS CHANGES AFOOT SIX OF THE EIGHT TOP OFFICERS OF THE C. P. B. ARE NEW THIS YEAR AMONG THOSE REPLACED WAS THE EXECUTIVE WHO NEGOTIATED C. P. B.'S CUT OF PRODUCT LICENSING DEALS AT AN UNPRECEDENTED DECEMBER MEETING THAT BROUGHT TOGETHER ADMINISTRATORS OF THE SYSTEM'S TRIAD THE C. P. B. ITS P. B. S. PROGRAMMING ARM AND THE THREE HUNDRED FIFTY ONE LOCAL STATIONS THERE WAS DARK TALK OF CUTTING DOWN AS MANY AS A THIRD OF THE STATIONS BY FORCING MERGERS RIGHT NOW MANY CITIES HAVE SEVERAL PUBLIC STATIONS COMPETING FOR OVERLAPPING AUDIENCES AND SPONSORS AND COME FEBRUARY FIRST A NEW LEADER TAKES CHARGE AT P. B. S. ERVIN DUGGAN WHO IS STEPPING DOWN AS A MEMBER OF THE FEDERAL COMMUNICATIONS COMMISSION AND HAS VOWED TO REBUILD THE CASE FOR PUBLIC BROADCASTING ULTIMATELY THAT MAY BE ACCOMPLISHED BY RETURNING PUBLIC T. V. TO ITS EDUCATIONAL ROOTS WITH A BIG BOOST FROM TECHNOLOGY IF QUOTE TELECOURSES QUOTE ARE MORE PROSAIC THAN BIG BIRD AND QUOTE MASTERPIECE THEATRE QUOTE THEY ARE INCREASINGLY WHERE THE MONEY IS STATE GOVERNMENTS ARE SCRAMBLING TO BUILD DISTANCE LEARNING NETWORKS TO BRING INSTRUCTION AND INTERACTIVE DATA TO SCHOOLS AND BUSINESSES AND PUBLIC T. V. STATIONS ARE LINCHPINS OF THESE NEW MULTIMEDIA NETWORKS WHILE CONGRESS HAS BEEN UNWILLING TO SPRING FOR UNRESTRICTED P. B. S. PROGRAMMING BUDGETS IT HAS BEEN RECEPTIVE TO THE SYSTEM'S NEW EDUCATIONAL PRIORITIES IT CAME UP WITH A SPECIAL ONE HUNDRED FIFTY MILLION DOLLARS ALLOCATION FOR P. B. S.'S JUST LAUNCHED TELSTAR FOUR HUNDRED ONE SATELLITE WHICH WILL CARRY THE NEW READY TO LEARN CHANNEL OF INSTRUCTIONAL PROGRAMMING FOR PRESCHOOLERS THOUGH P. B. S. HAS LURCHED FROM MONEY CRUNCH TO MONEY CRUNCH FOR MOST OF ITS TWENTY FIVE YEAR HISTORY IT NOW FACES A FUNDAMENTAL CHANGE IN ITS CONSTITUENCY OF PATRONS ONE THAT IS ALREADY ALTERING WHAT GOES ON THE AIR OF PUBLIC T. V.'S TOTAL ONE POINT THREE NINE BILLION DOLLAR BUDGET IN FISCAL NINETEEN NINETY TWO CONGRESS'S SHARE HAS DROPPED TO SLIGHTLY OVER THIRTEEN PERCENT FROM NEARLY TWENTY PERCENT IN NINETEEN EIGHTY THE PORTION PROVIDED BY STATE GOVERNMENTS HAS DIPPED EVEN MORE SHARPLY TO SIXTEEN PERCENT FROM ALMOST TWENTY FIVE PERCENT IN NINETEEN EIGHTY THUS THERE IS GROWING PRESSURE ON SUBSCRIBERS AND CORPORATIONS TO TAKE UP THE SLACK TOGETHER THEY NOW ACCOUNT FOR ABOUT THIRTY EIGHT PERCENT OF PUBLIC T. V.'S BUDGET UP FROM TWENTY THREE PERCENT UNIVERSITIES AND FOUNDATIONS ACCOUNT FOR THE REST YET PRIME TIME VIEWERSHIP HAS SLUMPED EIGHTEEN PERCENT IN THE PAST SIX YEARS AND SUBSCRIBER CONTRIBUTIONS ROSE ONLY MODESTLY IN FISCAL NINETEEN NINETY TWO THE LATEST FIGURES AVAILABLE CORPORATE FUNDING WAS OFF THREE PERCENT AND P. B. S. SAYS THAT IN FISCAL NINETEEN NINETY THREE SUPPORT FROM BUSINESS FOR NATIONAL PROGRAMMING NOSE DIVED THIRTEEN POINT FOUR PERCENT AND INSIDERS EXPECT FURTHER DECLINES THIS YEAR WE ARE JUST NOT GETTING THE KIND OF RESPONSE WE NEED FROM THE RECESSION BATTERED BUSINESS WORLD SAYS RICHARD CARLSON PRESIDENT AND CHIEF EXECUTIVE OF C. P. B. BUT AL VECCHIONE EXECUTIVE PRODUCER OF THE MACNEIL SLASH LEHRER NEWSHOUR AND A TWENTY TWO YEAR VETERAN OF PUBLIC TELEVISION BLAMES UNDERWRITER DEFECTIONS ON P. B. S.'S STRINGENT GUIDELINES GOVERNING THE NATURE AND LENGTH OF CORPORATE MESSAGES EVEN THOUGH THOSE GUIDELINES HAVE BEEN LOOSENED IN RECENT YEARS COMPANIES CAN BROADCAST A FULL LENGTH COMMERCIAL ON CABLE T. V. AND REACH THE SAME SIZE AUDIENCE AS ON SAY NOVA HE ARGUES I DO NOT SUPPORT THE IDEA OF COMMERCIALS ON PUBLIC TELEVISION HE SAYS BUT THE GUIDELINES OUGHT TO BE LIBERALIZED AND STANDARDIZED MACNEIL SLASH LEHRER RECENTLY LOST A MAJOR UNDERWRITER WHEN PEPSICO INCORPORATED ANNOUNCED IT WOULD PULL OUT IN JUNE NEW YORK LIFE INSURANCE COMPANY AND ARCHER DANIELS MIDLAND COMPANY WILL STEP INTO THE BREACH GIVING A TOTAL OF FIFTY FIVE MILLION DOLLARS OVER FIVE YEARS BUT MR. VECCHIONE SAYS HE QUOTE HASN'T RAISED A SINGLE DOLLAR IN TWO YEARS QUOTE FROM CORPORATE SPONSORS FOR THE PUBLIC AFFAIRS SPECIALS THAT HIS COMPANY ALSO PRODUCES UNLESS THE SYSTEM'S FUNDING TROUBLES CAN BE RESOLVED IT WILL BE A COMMERCIAL MEDIUM IN THE NEXT CENTURY WARNS BRUCE CHRISTENSEN WHO SERVED AS P. B. S.'S PRESIDENT FROM NINETEEN EIGHTY FOUR UNTIL LAST SUMMER MANY SUGGEST IT IS TILTING PERILOUSLY CLOSE TO THAT NOW THE RAPID TRANSFORMATION OF THE T. V. INDUSTRY ALREADY HAS BEGUN TO ROB PUBLIC T. V. OF ITS DISTINCTIVE VOICE CABLE NETWORKS LIKE DISCOVERY AND ARTS AND ENTERTAINMENT STILL DON'T REACH ALL TELEVISION VIEWERS BUT THEY ROUTINELY OFFER CABLE SUBSCRIBERS THE SORT OF CULTURAL FARE AND DOCUMENTARIES THAT ONCE WERE THE SOLE PROVINCE OF P. B. S. CABLE'S BRAVO CHANNEL EVEN OFFERS ADVERTISERS UNDERWRITING OPPORTUNITIES MEANWHILE PUBLIC T. V. IS ASSIDUOUSLY COURTING SUBSCRIBERS AND BUSINESS WHICH PURISTS DECRY AS EQUIVALENT TO CHASING BIG RATINGS FOR EXAMPLE THIS SEASON'S PRIME TIME P. B. S. LINEUP INCLUDES A FAILED THOUGH CRITICALLY ACCLAIMED NETWORK DRAMA SERIES I'LL FLY AWAY AND P. B. S. IS DEVELOPING SCRIPTS FOR A POTENTIAL COMEDY SERIES PRODUCED BY FORMER N. B. C. ENTERTAINMENT PRESIDENT BRANDON TARTIKOFF SITCOMS WILL BE OUR DEATH KNELL SAYS WILLIAM BAKER PRESIDENT OF W. N. E. T. T. V. IN NEW YORK TOO MANY PEOPLE IN PUBLIC TELEVISION THINK OF THEMSELVES AS HIGH END COMMERCIAL BROADCASTERS IF YOU TREAT IT LIKE COMMERCIAL TELEVISION YOU'RE DOOMED QUOTE AT THE INDIVIDUAL STATION LEVEL THE CLASH BETWEEN THE SYSTEM'S MISSION AND THE MARKETPLACE IS EVEN MORE VIVID EACH STATION GETS A PORTION OF ITS FUNDS LESS THAN TWENTY PERCENT ON AVERAGE FROM THE C. P. B. A PRIVATE NONPROFIT ENTITY THAT ADMINISTERS CONGRESS'S ANNUAL ALLOCATION WHICH AMOUNTS TO TWO HUNDRED SEVENTY FIVE MILLION DOLLARS IN FISCAL NINETEEN NINETY FOUR AFTER FUNNELING SOME OF THE MONEY BACK TO P. B. S. FOR ITS NATIONAL PROGRAMMING SERVICE THE STATIONS ARE ON THEIR OWN TO FUND THE REMAINDER OF THEIR BUDGETS IN RECENT YEARS SOME HAVE HAD TO SLASH EXPENSES DRASTICALLY WHILE OTHERS HAVE TRIED A MORE ENTREPRENEURIAL APPROACH SEATTLE'S KCTS T. V. AND DETROIT'S WTVS T. V. FORMED A JOINT VENTURE IN LONDON THAT SEEKS OUT EUROPEAN PARTNERS OFTEN COMMERCIAL BROADCASTERS WITH WHOM THEY CO PRODUCE SHOWS THUS HALVING THEIR OWN COSTS A NUMBER OF STATIONS HAVE CUT DEALS WITH A FRANCHISE KNOWN AS LEARNINGSMITH WHICH SELLS PARAPHERNALIA RELATED TO PUBLIC T. V. PROGRAMS SUCH AS BOOKS AND VIDEOTAPES BUT RETURNS LESS THAN FIVE PERCENT OF SALES TO THE STATIONS OTHERS LEASE OUT THEIR PRODUCTION FACILITIES TO COMMERCIAL BROADCASTERS CHICAGO'S WTTW DERIVES NEARLY A QUARTER OF ITS REVENUES FROM SUCH DEALS OVER TWO WEEKS LAST OCTOBER CHICAGO'S WTTW PRESENTED FORTY HOURS OF PRODUCT PITCHES IN A HOME SHOPPING SHOW THAT FEATURED SUCH ITEMS AS BRONZE STATUES SWEAT SHIRTS AND JEWELRY CRITICS WERE AGHAST THAT HOME SHOPPING WAS CROWDING OUT REGULAR PROGRAMMING BUT VIEWERS REGISTERED VERY FEW NEGATIVE RESPONSES ACCORDING TO A STATION OFFICIAL NORM ABRAMS THE HOST OF THE NEW YANKEE WORKSHOP A P. B. S. HOME WOODWORKING SHOW PRODUCED BY BOSTON'S W. G. B. H. PUTTERS ON CAMERA WITH TOOLS MADE BY ONE OF THE SHOW'S UNDERWRITERS DELTA INTERNATIONAL MACHINERY CORPORATION THE BRAND NAMES ARE COVERED UP BUT A PRESS KIT FOR THE SHOW NOTES THAT IT'S NOT UNUSUAL FOR DISTRIBUTORS TO RECEIVE PHONE CALLS FROM VIEWERS INQUIRING ABOUT DELTA TOOLS THEY'VE SEEN NORM USE ON THE SHOW LAST YEAR P. B. S. DISTRIBUTED A GLOWING DOCUMENTARY ON JOURNALIST JAMES RESTON THE SHOW WAS PRODUCED BY THE SCRANTON PENNSYLVANIA PUBLIC T. V. STATION IN ASSOCIATION WITH THE NEW YORK TIMES MR. RESTON'S EMPLOYER FOR FORTY TWO YEARS UNTIL HIS RETIREMENT IN NINETEEN EIGHTY SEVEN ITS PRODUCER AND DIRECTOR SUSAN W. DRYFOOS IS A MEMBER OF THE SULZBERGER FAMILY THAT RUNS THE NEWSPAPER MR. DUGGAN P. B. S.'S INCOMING PRESIDENT VIEWS SUCH COMMERCIALISM AS A FUNCTION OF P. B. S.'S PENURY BROUGHT ON HE SAYS BY TWELVE YEARS OF TIGHT FISTED REPUBLICAN ADMINISTRATIONS IN WASHINGTON HE LIKENS THE SYSTEM TO A NEWLY WIDOWED WOMAN FORCED TO TAKE IN LAUNDRY TO MAKE ENDS MEET SOME OF THAT PENNY PINCHING STEMMED FROM REPUBLICAN COMPLAINTS THAT PUBLIC TELEVISION IS A POORLY DISGUISED MOUTHPIECE FOR LIBERAL CAUSES OTHERS HAVE COUNTERED THAT BIG BUSINESS AND THUS CONSERVATIVE THINKING CONTROLS PUBLIC T. V.'S UNDERWRITING PURSE STRINGS WHILE P. B. S. CRIES POVERTY MANY OF ITS PROGRAM SUPPLIERS HAVE GOTTEN RICH THROUGH PUBLIC TELEVISION EXPOSURE QUOTE BARNEY QUOTE MERCHANDISE EVERYTHING FROM LUNCH BOXES TO UNDERWEAR GENERATES SEVERAL HUNDRED MILLION DOLLARS IN RETAIL SALES ANNUALLY ANALYSTS ESTIMATE A CUT GOES BACK TO THE PRIVATE LYONS GROUP WHICH PRODUCES THE SHOW BUT ALMOST NOTHING GOES TO THE C. P. B. WHICH TOGETHER WITH P. B. S. HAS CONTRIBUTED MORE THAN TWO POINT FIVE MILLION DOLLARS TO PRODUCE EPISODES FEATURING THE PURPLE DINOSAUR AND BARNEY PRODUCERS CAN COUNT ON MORE PUBLIC MONEY FOR NEW EPISODES BECAUSE ANY C. P. B. LICENSING EARNINGS MUST BE PLOWED BACK INTO NEW PRODUCTION THE TERMS OF THE DEAL HAVE OUTRAGED LAWMAKERS WHO CONTROL THE CONGRESSIONAL ALLOCATION FOR PUBLIC TELEVISION SIMILARLY P. B. S. CONTINUES TO SUBSIDIZE SESAME STREET WHICH EARNS MILLIONS ON ITS TOYS AND CLOTHING LINES WITH SIX MILLION DOLLARS ANNUALLY LANCIT MEDIA'S NEW SERIES THE PUZZLEWORKS IS P. B. S.'S FIRST MAJOR UNDERTAKING FOR PRESCHOOLERS SINCE SESAME STREET MADE ITS DEBUT TWENTY FIVE YEARS AGO SO FAR LANCIT AND KCET T. V. IN LOS ANGELES HAVE LINED UP EIGHT MILLION DOLLARS IN OUTSIDE FINANCING INCLUDING A FOUR POINT FIVE MILLION DOLLAR GRANT FROM C. P. B. ITS LARGEST EVER TOWARD THE FIRST YEAR'S PRODUCTION BUDGET C. P. B.'S DEAL WITH LANCIT IS ITS STANDARD C. P. B. PUT UP SEED MONEY EQUAL TO ABOUT THIRTY EIGHT PERCENT OF THE SHOW'S FIRST YEAR BUDGET IN TURN IT WILL RECEIVE AND RETURN TO LANCIT AND KCET FOR NEW PRODUCTION NINETEEN PERCENT OF THE NET ANCILLARY REVENUES FROM MERCHANDISING AFTER DEDUCTING COSTS OF MARKETING PROMOTION AND DISTRIBUTION AMONG OTHERS MR. CHRISTENSEN ARGUES THAT BECAUSE PUBLIC TELEVISION WON'T PROVIDE TOTAL FUNDING FOR SHOWS IT HAS TO OFFER INCENTIVES TO ATTRACT ENTREPRENEURIAL PRODUCERS YOU CAN'T HAVE IT BOTH WAYS HE SAYS ADDS P. B. S.'S MR. OTTENHOFF QUOTE FOR EVERY BARNEY THERE ARE TWENTY TO THIRTY OTHER PROGRAMS THAT ARE UNDERFUNDED QUOTE NEVERTHELESS BOTH C. P. B. AND P. B. S. OFFICIALS SAY THAT ALL LICENSING POLICIES ARE UNDER REVIEW WE DON'T HAVE TO GET IN THE PROFIT MAKING BUSINESS SAYS A C. P. B. EXECUTIVE BUT WE SHOULD GET MORE BACK TO USE TO GENERATE NEW SHOWS THE NATIONAL PROGRAM SCHEDULE IS JUST PART OF THE BUSINESS OF PUBLIC TELEVISION THE REST OF ITS MANDATE IS THE LESS VISIBLE EDUCATIONAL SIDE WHICH P. B. S. ALSO OVERSEES AFTER YEARS OF TAKING A BACK SEAT TO NATIONAL PROGRAMMING INSTRUCTIONAL T. V. IS NOW WHERE THE ACTION IS A GLIMPSE OF PUBLIC TELEVISION'S FUTURE CAN BE SEEN TODAY IN SOUTH CAROLINA WHERE PUBLIC T. V.'S ELECTRONIC CLASSROOMS REACH INTO EVERY SCHOOL PRISON AND COUNTY BUILDING AND IN UTAH SALT LAKE CITY'S KUED T. V. IS PART OF A STATE WIDE CONSORTIUM THAT IS DEVELOPING AN INTERACTIVE VIDEO AUDIO AND DATA SYSTEM THAT BRINGS SCIENCE CLASSES TO HIGH SCHOOL STUDENTS ON A NAVAJO RESERVATION AND MEDICAL TRAINING TO RURAL DOCTORS CONSORTIUM MEMBERS INCLUDE UTAH'S COLLEGES THE STATE OFFICE OF EDUCATION AND PRIVATE INDUSTRY THE GROUP ALSO WORKS CLOSELY WITH PHONE COMPANY U. S. WEST AND CABLE COMPANY TELE COMMUNICATIONS INCORPORATED WE'VE GOT TO PROVE OUR WORTH SAYS FRED ESPLIN KUED'S GENERAL MANAGER IF WE'RE TRULY MEETING NEEDS THEN THE MONEY WILL BE THERE MR. DUGGAN THE INCOMING P. B. S. PRESIDENT SAYS THAT WHILE HE WILL BE OUT RATTLING THE TIN CUP PUBLIC TELEVISION ALSO MUST LEARN TO DO MORE WITH IMAGINATION AND ORIGINALITY RATHER THAN FOCUS ON THE FUNDING CRUNCH HE PREFERS TO EMPHASIZE WHAT HE CALLS UNHAPPY TRENDS IN COMMERCIAL BROADCASTING THAT MAKE PUBLIC T. V. INCREASINGLY NECESSARY THE FEEDING FRENZY TO SEE WHO CAN BE THE MOST EXPLOITIVE IN NEWS CHILDREN'S AND ENTERTAINMENT SERIES PROGRAMMING HE ALSO EXPECTS TO MAKE THE CASE THAT THE NEW INFORMATION SUPERHIGHWAY SHOULD BE BUILT AROUND THE PUBLIC TELEVISION INFRASTRUCTURE ALREADY IN PLACE QUOTE A LOT OF GOOD MARRIAGES COME WHEN YOU MARRY THE GIRL OR BOY NEXT DOOR AND IN THIS CASE THAT'S PUBLIC TELEVISION QUOTE HE SAYS LANCIT MEDIA PRODUCTIONS LIMITED THE PRODUCER OF THE READING RAINBOW SERIES ON PUBLIC BROADCASTING SERVICE WENT PUBLIC IN NINETEEN NINETY ONE A PAGE ONE ARTICLE THURSDAY SAID INCORRECTLY THAT AT THE TIME OF THE INITIAL PUBLIC OFFERING LANCIT HAD A P. B. S. COMMITMENT FOR ANOTHER SERIES THE PUZZLEWORKS LANCIT DIDN'T RECEIVE THE COMMITMENT FOR THE PUZZLEWORKS UNTIL AFTER THE INITIAL PUBLIC OFFERING MICROSOFT CORPORATION SAID IT AGREED WITH PACIFIC GAS AND ELECTRIC COMPANY AND TELE COMMUNICATIONS INCORPORATED TO TEST THE USE OF CABLE TELEVISION SYSTEMS TO DELIVER ENERGY INFORMATION SERVICES TO HOMES UNDER THE AGREEMENT CONSUMERS PARTICIPATING IN THE TEST WOULD BE SUPPLIED WITH TWO WAY COMMUNICATIONS TRADE INFORMATION WITH PACIFIC GAS AND ELECTRIC USING TELEVISION SETS HOOKED INTO T. C. I.'S CABLE T. V. SYSTEM MICROSOFT REDMOND WASHINGTON SAID IT WILL WRITE THE OPERATING SYSTEM SOFTWARE USED IN THE SERVICE T. C. I. IS BASED IN ENGLEWOOD COLORADO THE COMPANIES WILL TEST THE SERVICE IN ABOUT TWO THOUSAND HOMES IN WALNUT CREEK CALIFORNIA AND OTHER PLACES IN THE STATE THIS YEAR CONSUMERS USING THE SERVICE COULD FOR INSTANCE USE IT TO GET AN UP TO THE MINUTE LOOK AT HOW MUCH GAS AND ELECTRICITY THEY ARE USING AND WHAT IT IS COSTING THEM PACIFIC GAS AND ELECTRIC SAID IN A NEWS RELEASE CUSTOMERS COULD ALSO PAY ENERGY BILLS THROUGH THE SYSTEM AND THE UTILITY COULD USE THE NETWORK TO QUICKLY PINPOINT POWER OUTAGES THE TEST COMES AS MANY INDUSTRIES ARE LOOKING FOR SERVICES THAT MIGHT TAKE ADVANTAGE OF AN QUOTE INFORMATION SUPERHIGHWAY QUOTE UTILITIES HAVE BEEN PARTICULARLY INTERESTED IN THE POTENTIAL OF CABLE AND PHONE LINES TO ALLOW THEM TO DO SUCH TASKS READING CUSTOMERS' ELECTRIC AND GAS METERS FROM AFAR FOR TRADERS AT JJC SPECIALIST CORPORATION GOING OUT FOR LUNCH IS JUST A MEMORY THESE DAYS BUSINESS IS SO BRISK ON THE NEW YORK STOCK EXCHANGE THAT MANY SPECIALISTS ON THE FLOOR STICK CLOSE TO THEIR POSTS AT LUNCH TIME QUOTE IT'S BECOMING HIGHLY UNFASHIONABLE TO GO OUT FOR LUNCH NOW QUOTE SAYS CHRISTOPHER QUICK PRESIDENT OF JJC SPECIALIST A SUBSIDIARY OF QUICK AND REILLY GROUP THERE ARE NO MORE LULLS IN THE BUSINESS IT'S JUST BUSY ALL DAY LONG INDEED TRADING IN SHARES ON THE BIG BOARD IS SIZZLING LAST WEEK VOLUME WAS THE SECOND HIGHEST IN EXCHANGE HISTORY SECOND ONLY TO THE WEEK OF THE OCTOBER NINETEEN EIGHTY SEVEN CRASH AND VOLUME ON THE NEW YORK STOCK EXCHANGE HAS SURPASSED THREE HUNDRED MILLION SHARES EVERY DAY THIS WEEK LIFE HAS BEEN BUSY ON THE NASDAQ STOCK MARKET AND AMERICAN STOCK EXCHANGE TOO AVERAGE DAILY VOLUME THIS YEAR ON NASDAQ IS RUNNING AT THREE HUNDRED SEVENTEEN MILLION SHARES UP FROM ABOUT TWO HUNDRED SIXTY FOUR MILLION SHARES LAST YEAR AT THE AMEX DAILY TRADING VOLUME IS AVERAGING NINETEEN POINT FIVE MILLION SHARES UP FROM EIGHTEEN POINT ONE MILLION SHARES IN PART THE HEAVY TRADING RESULTS FROM A SEASONAL SURGE THAT TAKES PLACE IN EARLY JANUARY WHEN MANY MANAGERS OF LARGE PENSION AND MUTUAL FUNDS RE ENTER THE MARKET AFTER CLOSING OUT THEIR POSITIONS NEAR YEAR END MANY INDIVIDUALS ALSO MAKE THEIR NINETEEN NINETY FOUR INVESTMENT DECISIONS AT THIS TIME AND SOME OF THESE INVESTORS ARE HANDSOMELY ENDOWED WITH CASH FROM YEAR END BONUSES RECORD LEVELS OF COMPUTER GUIDED PROGRAM TRADING ARE CONTRIBUTING AS WELL BUT THE JUMP THIS YEAR GOES BEYOND MERE SEASONAL FACTORS WITH EVER GREATER NUMBERS OF HOUSEHOLD INVESTORS PARTICIPATING IN THE STOCK MARKET AND AN EXPANSION OF DERIVATIVE TRADING PRODUCTS VOLUME HAS BEEN ON A STEADY UPSWING FOR YEARS AVERAGE DAILY TRADING VOLUME ON THE BIG BOARD LAST YEAR HIT A RECORD TWO HUNDRED SIXTY FOUR POINT FIVE MILLION SHARES UP DRASTICALLY FROM THE AVERAGE TWO HUNDRED TWO POINT THREE MILLION THE YEAR BEFORE IN NINETEEN EIGHTY FOUR THE AVERAGE DAILY VOLUME WAS NINETY ONE POINT TWO MILLION SHARES THIS SURGE IS THE CONTINUATION OF THE HEAVY VOLUME WE HAD LAST YEAR SAYS DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS WHO KNOWS MAYBE THREE HUNDRED MILLION SHARES A DAY WILL BECOME NORMAL INSTEAD OF TWO HUNDRED MILLION ANALYSTS CAREFULLY WATCH THE RELATIONSHIP BETWEEN TRADING VOLUME AND SHAREPRICE MOVEMENT FOR INDICATIONS OF THE STOCK MARKET'S HEALTH FOR INSTANCE FEW ANALYSTS WELCOME RISING VOLUME UNLESS IT'S ACCOMPANIED BY RISING PRICES SO FAR THE LEAP IN VOLUME HASN'T RAISED ANY WARNING FLAGS SAYS A. C. MOORE PORTFOLIO MANAGER AND STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIFORNIA HE ARGUES THAT CURRENT HEAVY VOLUME IS MOSTLY MAKING UP FOR SEVERAL WEEKS OF SLOWER TRADING NEAR THE END OF THE YEAR HE ADDS THAT STOCK PRICES HAVE BEEN ADVANCING FOR THE MOST PART DURING THIS PERIOD OF INCREASED TRADING IF THIS TYPE OF VOLUME CONTINUES FOR TWO TO THREE MORE WEEKS WITHOUT A COMMENSURATE MOVE UP IN PRICES THAT WOULD BE A CLASSIC BEARISH SIGNAL MR. MOORE SAYS ANOTHER KEY CONSIDERATION IS THE AMOUNT OF MONEY IT TAKES TO MOVE PRICES IN EITHER DIRECTION SAYS LASZLO BIRINYI OF FINANCIAL SERVICES FIRM BIRINYI ASSOCIATES A PICKUP IN VOLUME THAT FAILS TO DRIVE PRICES UP OR DOWN WOULD RAISE CONCERN BUT THE SHARP ADVANCES AND DECLINES IN RECENT DAYS AMID HEAVY TRADING SUGGESTS THAT VOLUME IS PUSHING PRICES AS IT SHOULD WHAT WE'RE SEEING IS THAT THE AMOUNT OF MONEY IT TAKES TO MOVE THE MARKET IS ABOUT THE SAME AS WE'VE ALWAYS SEEN IT'S IN LINE WITH HISTORICAL NUMBERS MR. BIRINYI SAYS SWELLING VOLUME IN ITSELF CAN BE INTERPRETED AS BULLISH FOR THE STOCK MARKET CONTENDS BERNADETTE MURPHY DIRECTOR OF TECHNICAL ANALYSIS AT MONEY MANGEMENT FIRM M. KIMELMAN AND COMPANY QUOTE MARKET TECHNICIANS HAVE A THESIS THAT VOLUME LEADS STOCK PRICES QUOTE SHE SAYS SO THE FACT THAT VOLUME IS IMPROVING IS A POSITIVE SIGN MS. MURPHY ADDS THAT ALONG WITH RISING VOLUME SHE'D LIKE TO SEE MORE STOCKS MOVING TO NEW HIGHS AND A GREATER NUMBER OF ADVANCING ISSUES EACH DAY COMPARED WITH DECLINERS SHE'D BEGIN TO WORRY IF VOLUME CONTINUES RISING WITHOUT FURTHER IMPROVEMENT IN SOME OF THOSE OTHER TECHNICAL MEASURES WHILE MS. MURPHY DOESN'T RULE OUT A DOWNTURN OF TWO PERCENT TO THREE PERCENT AFTER THE MARKET'S HEALTHY ADVANCE IN RECENT WEEKS IF VOLUME KEEPS AT THIS RAMBUNCTIOUS LEVEL LATE INTO THE QUARTER THEN I'D BE CONCERNED ABOUT A POSSIBLE BIGGER CORRECTION THE TRADING FLOOR OF THE STOCK EXCHANGE ISN'T THE ONLY PLACE TO WITNESS THE RECENT RUSH TO BUY AND SELL SHARES PHONES ARE RINGING MADLY AT MUTUAL FUND COMPANIES TOO AT BOSTON BASED FIDELITY INVESTMENTS NEAL LITVACK EXECUTIVE VICE PRESIDENT SAID THIS MONTH MAY TURN OUT TO BE THE COMPANY'S BEST EVER SURPASSING AUGUST NINETEEN NINETY THREE WHEN TWO POINT ONE BILLION DOLLARS FLOWED INTO FIDELITY'S STOCK AND BOND FUNDS THE DOW JONES INDUSTRIAL AVERAGE THAT MONTH ROSE TO RECORD LEVELS THOUGH CASH FLOWS INTO FIDELITY'S FUNDS GENERALLY PICK UP IN JANUARY MR. LITVACK SUGGESTS THAT THIS WON'T BE A ONE MONTH UPTREND INQUIRIES ABOUT FIDELITY FUNDS ARE AT RECORD LEVELS SUGGESTING THAT MORE NEW MONEY WILL FLOW INTO THE GIANT MUTUAL FUND COMPANY IN FEBRUARY AND MARCH WHAT'S MORE MANY INVESTORS ARE TRANSFERRING THEIR RETIREMENT ASSETS FROM FULL SERVICE BROKERS AND BANKS TO FIDELITY ABOUT FIFTY PERCENT OF THE RETIREMENT TRANSFER ASSETS ARE COMING OUT OF BANKS SUGGESTING THAT THERE IS STILL NEW MONEY FLOWING INTO STOCKS OF COURSE LOTS OF TRADING DOESN'T HURT THE COMMISSION EARNINGS AT BROKERAGE HOUSES EITHER THEY'RE MAKING MONEY OFF ALL THE TRADING SAYS JAMES HANBURY AN ANALYST AT WERTHEIM SCHRODER BUT MR. HANBURY POINTS OUT THAT BECAUSE COMMISSIONS ACCOUNT FOR ONLY ABOUT NINETEEN PERCENT OF EXCHANGE MEMBER FIRMS' REVENUES IT'S IMPORTANT NOT TO OVERSTATE THE IMPACT OF STRONGER VOLUME HE ADDS THAT DISCOUNT BROKERS BENEFIT MORE THAN OTHER FIRMS BECAUSE THEY DERIVE MORE OF THEIR REVENUES FROM COMMISSIONS BEYOND COMMISSION FEES HIGH VOLUME TRANSLATES INTO RISING LEVELS OF MARGIN DEBT THAT BOOSTS THE BROKERAGE COMPANIES' INTEREST INCOME MR. HANBURY SAYS THERE ARE ANCILLARY BENEFITS HE SAYS BUT IT ISN'T A STRAIGHT LINE FROM VOLUME TO BROKERS' PROFITS DIRECTORS OF PARAMOUNT COMMUNICATIONS INCORPORATED REJECTED A REVISED NINE POINT THREE BILLION DOLLAR TAKEOVER BID BY VIACOM INCORPORATED AND STUCK TO THEIR EARLIER ENDORSEMENT OF A HIGHER NINE POINT NINE BILLION DOLLAR OFFER BY Q. V. C. NETWORK INCORPORATED THE BOARD EMPHASIZED THAT FINAL BIDS IN THE LONG RUNNING TAKEOVER FIGHT MUST BE MADE BY FEBRUARY FIRST UNDER THE BIDDING RULES SET BY PARAMOUNT BUT THE DIRECTORS OF THE ENTERTAINMENT AND PUBLISHING GIANT TOOK ONLY THE MILDEST OF ACTIONS IN RESPONSE TO A Q. V. C. DEMAND THAT VIACOM BE DECLARED TO HAVE BREACHED THE BIDDING RULES BY MAKING A NEW OFFER LAST FRIDAY WITHOUT INCREASING THE OVERALL VALUE OF ITS BID THE NEW OFFER FORCED A TWO WEEK EXTENSION OF THE BIDDING WAR THE BOARD'S REJECTION OF VIACOM'S NEW OFFER WAS EXPECTED AND TRADERS SAID IT WOULD HAVE LITTLE IMPACT ON THE FOUR MONTH OLD TAKEOVER FIGHT PARAMOUNT'S BOARD HAVING BEEN REBUKED BY TWO DELAWARE COURTS FOR IMPROPERLY FAVORING FRIENDLY BIDDER VIACOM INITIALLY NOW HAS ADOPTED A DETERMINEDLY HANDS OFF APPROACH TO MANAGING THE BIDDING CONTEST IN ITS LATEST OFFER VIACOM BOOSTED THE CASH PART OF ITS BID TO ONE HUNDRED FIVE DOLLARS A SHARE FOR FIFTY POINT ONE PERCENT OF PARAMOUNT STOCK FROM EIGHTY FIVE DOLLARS A SHARE FOR FIFTY ONE PERCENT BUT VIACOM ALSO REDUCED THE AMOUNT OF STOCK BEING OFFERED FOR THE REMAINDER OF PARAMOUNT SHARES LEAVING THE TOTAL MARKET VALUE OF ITS OFFER VIRTUALLY UNCHANGED IN WHAT ONE TRADER CALLED QUOTE MILD FINGERWAGGING QUOTE PARAMOUNT CHAIRMAN MARTIN DAVIS SAID FUTURE BIDS WILL QUOTE CONTINUE TO BE RIGOROUSLY REVIEWED WITH REGARD TO THEIR COMPLIANCE WITH THE BIDDING PROCEDURES QUOTE IN A STATEMENT THE BOARD NOTED THAT VIACOM'S OFFER CONTAINED MORE CASH THAN Q. V. C.'S OFFER OF NINETY TWO DOLLARS A SHARE IN CASH FOR FIFTY POINT ONE PERCENT OF PARAMOUNT BUT THAT Q. V. C.'S PACKAGE REPRESENTS THE BEST VALUE AVAILABLE TO PARAMOUNT STOCKHOLDERS THE BOARD APPARENTLY FELT IT COULDN'T GO ANY FURTHER IN CRITICIZING VIACOM A CABLE TELEVISION COMPANY FOR RESTRUCTURING ITS OFFER WITH MORE THAN ONE POINT ONE BILLION DOLLARS IN ADDITIONAL CASH AS VIACOM LAWYER STEVEN VOLK NOTED THE PARAMOUNT BOARD IN ESTABLISHING THE BIDDING PROCEDURES EXPRESSED A PREFERENCE FOR CASH IN A LETTER TO PARAMOUNT DIRECTORS DATED TUESDAY Q. V. C. LAWYER MARTIN LIPTON HAD URGED THE BOARD TO DECLARE THAT Q. V. C. A HOME SHOPPING COMPANY SHOULDN'T HAVE TO EXTEND ITS CURRENT OFFER BEYOND JANUARY TWENTY FIRST THE NEXT DEADLINE FOR THE CURRENT BIDS IN RESPONSE TO A NEW VIACOM OFFER THE BIDDING PROCEDURES AGREED TO BY BOTH VIACOM AND Q. V. C. SET FEBRUARY FIRST AS THE LAST DEADLINE BECAUSE THE BIDS WHICH MUST REMAIN OPEN FOR TEN BUSINESS DAYS CAN'T BE EXTENDED BEYOND FEBRUARY FOURTEENTH HOWEVER TRADERS NOTE THAT THE PROCEDURES SEEM TO HAVE ENCOURAGED BOTH SIDES TO DELAY THEIR BEST BIDS UNTIL THE LAST MINUTE AND SOME SAY THAT EVEN AFTER THE SCHEDULED TIMETABLE EXPIRES AND A WINNER HAS BEEN DECLARED THE BOARD MIGHT BE HARD PRESSED TO DROP ITS ANTITAKEOVER DEFENSES FOR THE WINNER IF THE LOSING BIDDER QUICKLY COMES BACK WITH A SUBSTANTIALLY HIGHER OFFER CONAGRA INCORPORATED THE NATION'S LARGEST PRODUCER OF MICROWAVE POPCORN IS REFUNDING SEVERAL MILLION DOLLARS IN ROYALTY FEES TO COMPETITORS AFTER LOSING A CONTENTIOUS BATTLE OVER PATENTS FOR THE POPCORN BAG THE OMAHA NEBRASKA BASED COMPANY CONFIRMED YESTERDAY THAT IT HAS DECIDED TO ABANDON FURTHER APPEALS IN THE CASE IN WHICH A FEDERAL APPEALS COURT IN WASHINGTON THIS MONTH UPHELD A DISTRICT COURT RULING THAT A CONAGRA UNIT HAD OBTAINED PATENTS TO THE BAGS THROUGH A PATTERN OF FRAUDULENT BEHAVIOR THE JUDGE SAID CONAGRA'S GOLDEN VALLEY MICROWAVE FOODS INCORPORATED UNIT HAD FILED FALSE AFFIDAVITS WITH THE U. S. PATENT AND TRADEMARK OFFICE MISSTATED TEST RESULTS AND UNLAWFULLY CLAIMED ANOTHER'S INVENTION AS ITS OWN AS A RESULT BECAUSE EXISTING TECHNOLOGY WAS INVOLVED THE JUDGE HELD THAT BAGS HAVE NO PATENT PROTECTION THE BAG IN QUESTION HAS SINCE BECOME THE STANDARD IN AN INDUSTRY THAT SELLS AN ESTIMATED TWO BILLION PACKAGES OF MICROWAVABLE POPCORN ANNUALLY THE TECHNOLOGY AT ISSUE INVOLVES THE SUSCEPTOR STRIP INSIDE THE BAG THAT HEATS IT TO POPPING TEMPERATURE A TOTAL OF FIVE COMPANIES THAT CONAGRA WOULDN'T IDENTIFY WILL SHARE WHAT A CONAGRA ATTORNEY SAID IS BETWEEN THREE MILLION DOLLARS AND FOUR MILLION DOLLARS IN ROYALTIES ACCUMULATED OVER THE YEARS AT A RATE OF A PENNY A BAG THE MONEY HAS BEEN IN ESCROW SINCE JULY NINETEEN NINETY TWO WHEN THE DISTRICT COURT'S RULING CAME DOWN CONAGRA HAD ACQUIRED GOLDEN VALLEY THE PREVIOUS YEAR FOR NEARLY FIVE HUNDRED MILLION DOLLARS IN STOCK IN PART TO TAP ITS POPCORN BAG ROYALTIES SECURITIES ANALYSTS SAID AT THE TIME GOLDEN VALLEY SELLS MICROWAVE POPCORN UNDER THE ACT TWO LABEL ANOTHER CONAGRA UNIT MAKES ORVILLE REDENBACHER POPCORN THE TOP SELLING BRAND THAT IN THE FIFTY TWO WEEKS ENDED LAST DECEMBER FIFTH HELD A THIRTY SEVEN POINT NINE PERCENT SHARE OF THE FIVE HUNDRED TWELVE MILLION DOLLAR BUSINESS ACCORDING TO INFORMATION RESOURCES INCORPORATED'S INFOSCAN SERVICE ALTHOUGH IT DECIDED AGAINST TAKING THE CASE TO THE U. S. SUPREME COURT CONAGRA AGAIN DENOUNCED THE ORIGINAL COURT RULING AS HAVING QUOTE A CHILLING EFFECT ON THE AMERICAN INVENTIVE PROCESS QUOTE THE COMPANY SAID THE RULING SERVES TO DISCOURAGE ENTREPRENEURS FROM USING THE PATENT PROCESS TO PROTECT THE FRUITS OF THEIR INNOVATIONS AND PUTS AMERICAN COMPANIES AT A COMPETITIVE DISADVANTAGE TO OTHERS WHO COPY THEIR INVENTIONS THERE IS AN ADDED STING TO THE CASE IN THAT A SENIOR CONAGRA EXECUTIVE WAS AMONG THOSE AT GOLDEN VALLEY WHO HAD CLAIMED THE BAG INVENTION AS HIS OWN THE MAN JAMES D. WATKINS WHO HAD FOUNDED GOLDEN VALLEY NOW OVERSEES CONAGRA DIVERSIFIED PRODUCTS COMPANIES WHICH INCLUDES EDINA MINNESOTA BASED GOLDEN VALLEY AND IS A MEMBER OF CONAGRA'S OFFICE OF THE PRESIDENT WE CONTINUE TO INNOVATE AND HAVE TWO PENDING PATENT APPLICATIONS IN THE MICROWAVABLE POPCORN BAG AREA SAID RICHARD J. MOEN A CONAGRA ATTORNEY RICHARD D. HARRIS A CHICAGO ATTORNEY FOR ONE DEFENDANT IN THE CASE WEAVER POPCORN COMPANY OF VAN BUREN INDIANA SAID HIS CLIENT WAS VERY GRATIFIED THAT THE ORIGINAL COURT DECISION WAS UPHELD UNDER TERMS OF THE CASE NEITHER WEAVER NOR CO DEFENDANT AMERICAN PACKAGING CORPORATION PHILADELPHIA WAS REQUIRED TO PAY BAG ROYALTIES TO GOLDEN VALLEY NATIONAL INTERGROUP INCORPORATED SAID IT SOLD NEARLY THREE POINT FOUR MILLION SHARES OF NATIONAL STEEL CORPORATION FOR FORTY TWO POINT EIGHT MILLION DOLLARS IN A SERIES OF PRIVATELY NEGOTIATED TRANSACTIONS A NATIONAL INTERGROUP SPOKESMAN SAID THE DALLAS HOLDING COMPANY HAS PLANNED FOR SOME TIME TO DIVEST ITSELF OF THE LAST VESTIGES OF ITS ORIGINAL BUSINESS BY SELLING THE ELEVEN PERCENT STAKE IN NATIONAL STEEL WHICH IS NOW OWNED BY JAPAN'S N. K. K. CORPORATION NATIONAL INTERGROUP IS LEFT WITH JUST SEVENTY THOUSAND COMMON AND TEN THOUSAND PREFERRED SHARES IN THE STEEL MAKER THE SPOKESMAN SAID HE SAID THAT THE COMPANY WILL PUT TEN MILLION DOLLARS OF THE PROCEEDS INTO ESCROW TO COVER A POTENTIAL ENVIRONMENTAL LIABILITY THE COMPANY HASN'T SAID WHAT IT WILL DO WITH THE REST OF THE PROCEEDS HE ADDED TRIARC COMPANIES SAID A FEDERAL COURT APPROVED A PROPOSED SETTLEMENT WHICH CALLS FOR TRIARC TO ACQUIRE THE TWENTY NINE PERCENT STAKE OF SOUTHEASTERN PUBLIC SERVICE COMPANY THAT IT DOESN'T ALREADY OWN IN A STOCK TRANSACTION VALUED AT ABOUT SIXTY EIGHT MILLION DOLLARS TRIARC BASED IN NEW YORK SAID THE U. S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA APPROVED A PROPOSED SETTLEMENT BETWEEN SOUTHEASTERN SHAREHOLDERS AND TRIARC FORMERLY D. W. G. CORPORATION WHICH IMPLEMENTS THE ACQUISITION SOUTHEASTERN SHAREHOLDERS WILL RECEIVE ZERO POINT EIGHT TRIARC SHARES FOR EACH SHARE OF THE UTILITY THEY OWN OR A TOTAL OF TWO POINT SEVEN MILLION SHARES THE SETTLEMENT STILL REQUIRES APPROVAL BY HOLDERS OF AT LEAST TWO THIRDS OF THE OUTSTANDING SOUTHEASTERN SHARES NOT OWNED BY TRIARC TRIARC IS A HOLDING COMPANY THAT OWNS ARBY'S INCORPORATED ROYAL CROWN COLA COMPANY GRANITEVILLE COMPANY AND NATIONAL PROPANE CORPORATION SOUTHEASTERN IS A MIAMI BASED UTILITIES SERVICES COMPANY SCATTERED STRENGTH LIFTED SMALL COMPANY STOCKS TO NEW RECORDS IN A TOPSY TURVY SESSION QUOTE IT LOOKED PRETTY MUCH LIKE A TUG OF WAR BETWEEN BUYERS AND SELLERS QUOTE SAID JIM THOMAS VICE PRESIDENT OF EQUITY TRADING AT DAVENPORT AND COMPANY I DIDN'T SEE ANYONE REAL AGGRESSIVE HERE BUT SMALLER STOCKS REMAINED SO CLOSE TO THEIR RECORDS THAT ONLY A SLIGHT SHOVE WAS NEEDED TO TAKE THEM PAST PREVIOUS ALL TIME HIGHS THE RUSSELL TWO THOUSAND INDEX WHICH MEASURES THE PERFORMANCE OF SMALL CAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES GAINED ZERO POINT SIX POINT OR ZERO POINT TWO THREE PERCENT TO CLOSE AT TWO HUNDRED SIXTY POINT TWO THREE SQUEAKING PAST ITS OLD RECORD OF TWO HUNDRED SIXTY POINT ONE SEVEN SET NOVEMBER SECOND NINETEEN NINETY THREE THE NASDAQ COMPOSITE INDEX SURPASSED ITS RECORD IN THE MORNING BUT GAVE WAY TO SOME LIGHT PROFIT TAKING AND WAS UNABLE TO MAINTAIN A GRIP ON RECORD TERRITORY THE INDEX EDGED UP ONE POINT THREE FIVE POINTS OR ZERO POINT ONE SEVEN PERCENT TO END AT SEVEN HUNDRED EIGHTY SIX POINT EIGHT SEVEN ABOUT HALF A POINT SHORT OF ITS ALL TIME HIGH BOTH THE RUSSELL AND THE NASDAQ COMPOSITE FLIRTED WITH THEIR RECORDS ALL DAY NASDAQ NATIONAL MARKET VOLUME STOOD AT TWO HUNDRED SEVENTY THREE POINT THREE MILLION SHARES UP FROM TUESDAY'S TWO HUNDRED SEVENTY TWO POINT ONE MILLION OVERALL ACTIVITY WAS THREE HUNDRED TWENTY TWO POINT FIVE MILLION SHARES DOWN SLIGHTLY FROM THE PREVIOUS DAY'S THREE HUNDRED TWENTY ONE POINT NINE MILLION ADVANCERS NARROWLY BEAT NASDAQ DECLINERS ONE THOUSAND FIVE HUNDRED SEVENTY TO ONE THOUSAND FOUR HUNDRED NINETY NINE TECHNOLOGY STOCKS WERE MIXED BUT COMPUTER CHIP MAKERS STOOD OUT AS BIG GAINERS FOLLOWING A STRONG BOOK TO BILL RATIO REPORT LATE TUESDAY THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID THE DECEMBER INDEX ROSE TO ONE POINT OH FOUR FROM NOVEMBER'S ZERO POINT NINE NINE THE NEWS BOOSTED LEADING CHIP MAKER INTEL ONE AND FIVE EIGHTHS HIGHER TO SIXTY EIGHT AND THREE EIGHTHS SOME SMALLER SEMICONDUCTOR ISSUES ALSO BENEFITED NOVELLUS SYSTEMS SAN JOSE CALIFORNIA GAINED TWO AND ONE EIGHTH TO THIRTY SEVEN AND FIVE EIGHTHS CYPRESS SEMICONDUCTOR ALSO BASED IN SAN JOSE ROSE ONE QUARTER TO FOURTEEN AND THREE QUARTERS ON THE NEW YORK STOCK EXCHANGE AND LATTICE SEMICONDUCTOR HILLSBORO OREGON ROSE ONE HALF TO SIXTEEN AND ONE HALF SCIENTIFIC SOFTWARE INTERCOMP ALSO ROSE TO FIVE AND FIFTEEN SIXTEENTHS UP ONE AND ONE SIXTEENTH THE DENVER BASED COMPANY RECEIVED A CONTRACT FROM GENERAL MOTORS' HUGHES AIRCRAFT OF CANADA SUBSIDIARY TO PROVIDE ITS SAMMI GRAPHIC USER INTERFACE AS PART OF HUGHES' CANADIAN AUTOMATED AIR TRAFFIC SYSTEM SCIENTIFIC SOFTWARE INTERCOMP ESTIMATED THE CONTRACT WILL ADD EIGHT HUNDRED THOUSAND DOLLARS TO ITS NINETEEN NINETY THREE TO NINETEEN NINETY FOUR REVENUE SOME TECH STOCKS HOWEVER HAD A TOUGH SESSION TRICORD SYSTEMS A PLYMOUTH MINNESOTA MAKER OF NETWORK SUPERSERVERS FELL THREE AND ONE HALF TO NINETEEN AND THREE QUARTERS PARALLAN COMPUTER A MOUNTAIN VIEW CALIFORNIA NETWORKING CONCERN FELL ONE TO THIRTEEN AND ONE EIGHTH AND QUANTUM A MILPITAS CALIFORNIA DISK DRIVE MAKER FELL THREE EIGHTHS TO SIXTEEN AND THREE EIGHTHS AMONG HEALTH CARE ISSUES SUMMIT TECHNOLOGY A WALTHAM MASSACHUSETTS DESIGNER OF MEDICAL EQUIPMENT ROSE THREE TO TWENTY SIX THE COMPANY SAID THE FOOD AND DRUG ADMINISTRATION GRANTED AN EXPANSION OF ITS CLINICAL TRIAL OF PHOTOREFRACTIVE KERATECTOMY AN OUTPATIENT PROCEDURE DESIGNED TO CORRECT COMMON EYE DISORDERS QUIDEL ROSE SEVEN EIGHTHS TO FIVE AND SEVEN EIGHTHS THE SAN DIEGO DEVELOPER OF MEDICAL DIAGNOSTIC TESTS ROSE AFTER C. N. B. C. FINANCIAL CORRESPONDENT DAN DORFMAN CITED A SAN FRANCISCO MONEY MANAGER'S BULLISH VIEW ON THE COMPANY THE REPORT SAID WILL WEINSTEIN WHO HEADS GENESIS MERCHANT GROUP SEES QUIDEL STOCK RISING TO TEN IN TWELVE MONTHS ALSO CHEMTRAK INCORPORATED SUNNYVALE CALIFORNIA ROSE ONE TO SEVEN AND FIVE EIGHTHS THE COMPANY SAID AFTER TUESDAY'S CLOSE THAT IT HAS SIGNED A LICENSE AND SUPPLY AGREEMENT WITH ORTHO PHARMACEUTICAL CORPORATION A JOHNSON AND JOHNSON SUBSIDIARY TO MARKET CHEMTRAK'S HOME CHOLESTEROL TEST IN THE U. S. CANADA AND MEXICO A DISAPPOINTING FISCAL FOURTH QUARTER EARNINGS OUTLOOK CAUSED LADD FURNITURE TO SLIDE ONE AND THREE EIGHTHS TO TEN AND ONE EIGHTH THE HIGH POINT N. C. CONCERN SAID IT EXPECTS TO POST A MODEST LOSS ON SALES OF ABOUT ONE HUNDRED TWENTY FOUR MILLION DOLLARS COMPARED WITH YEAR EARLIER PER SHARE EARNINGS OF SIX CENTS ON SALES OF ONE HUNDRED TWENTY NINE MILLION DOLLARS IN OTHER ACTION ELSAG BAILEY PROCESS AUTOMATION A DUTCH DESIGNER OF SYSTEMS TO MONITOR PROCESS VARIABLES JUMPED TWO AND ONE QUARTER TO TWENTY FOUR AND ONE HALF ON THE BIG BOARD MERRILL LYNCH RAISED ITS NEAR TERM INVESTMENT RATING TO BUY FROM ABOVE AVERAGE AND MAINTAINED ITS LONG TERM BUY RATING ALSO ON THE BIG BOARD OAK INDUSTRIES A WALTHAM MASSACHUSETTS MAKER OF CONTROLS AND COMPONENTS FOR APPLIANCES ROSE ONE AND THREE QUARTERS TO SEVENTEEN AND ONE HALF DONALDSON LUFKIN AND JENRETTE INITIATED COVERAGE OF THE STOCK WITH A VERY ATTRACTIVE RATING NASDAQ NATIONAL MARKET STOCKS HITTING NEW HIGHS FOR THE YEAR TO DATE TOTALED ONE HUNDRED SEVEN WHILE TWENTY HIT NEW LOWS A BIPARTISAN FEDERAL ADVISORY COMMITTEE CALLED FOR AN OVERHAUL OF THE HEAD START PROGRAM FOR PRESCHOOL CHILDREN WITH MORE EMPHASIS ON QUALITY AND LESS ON QUANTITY IN AN EIGHTY FOUR PAGE REPORT EXPECTED TO SERVE AS A LEGISLATIVE BLUEPRINT FOR REFORMING THE GOVERNMENT'S HEALTH AND EDUCATION PROGRAM FOR LOW INCOME PRESCHOOL CHILDREN THE COMMITTEE SAID INCONSISTENT QUALITY AMONG THE VARIOUS HEAD START CENTERS IS ONE OF THE PROGRAM'S BIGGEST PROBLEMS MEASURES OUTLINED BY THE PANEL RANGE FROM ESTABLISHING MINIMUM PERFORMANCE STANDARDS TO RAISING TEACHER SALARIES TO REDUCING STAFF CASELOADS BEYOND FOCUSING ON QUALITY THE COMMITTEE ALSO SAID HEAD START SHOULD BE EXPANDED SENATOR EDWARD KENNEDY D. MASSACHUSETTS CHAIRMAN OF THE SENATE LABOR COMMITTEE SAID HE PLANNED TO INTRODUCE LEGISLATION INCORPORATING THE RECOMMENDATIONS WITHIN THE NEXT FEW MONTHS BUT DOUGLAS BESHAROV A MEMBER OF THE ADVISORY PANEL WARNED THAT IF JUST HALF OF THE RECOMMENDATIONS WERE ADOPTED THE COST OF HEAD START WOULD RISE TO TEN THOUSAND DOLLARS PER CHILD EACH YEAR FROM ABOUT FOUR THOUSAND DOLLARS CURRENTLY QUOTE IT MAKES HEAD START TOO EXPENSIVE EVEN FOR THIS ADMINISTRATION QUOTE SAID MR. BESHAROV A LAWYER AT THE AMERICAN ENTERPRISE INSTITUTE HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA SAID HEAD START WILL RECEIVE A SUBSTANTIAL INVESTMENT IN THE ADMINISTRATION'S NEW BUDGET BUT SHE ADDED THERE WERE MANY WAYS TO IMPROVE QUALITY WITHOUT POURING MONEY INTO THE PROGRAM HEAD START WHICH NOW SERVES ABOUT SEVEN HUNDRED TWENTY ONE THOUSAND CHILDREN WILL RECEIVE THREE POINT THREE BILLION DOLLARS IN FEDERAL MONEY THIS FISCAL YEAR EDWARD ZIGLER ONE OF HEAD START'S FOUNDERS AND A MEMBER OF THE ADVISORY COMMITTEE PRAISED THE PLAN AS A COMPLETE OVERHAUL THE FIRST ATTEMPT IN THE PROGRAM'S TWENTY NINE YEAR HISTORY TO TACKLE ITS REAL PROBLEMS THE REAGAN AND BUSH ADMINISTRATIONS HE SAID WERE MORE INTERESTED IN INCREASING THE NUMBER OF CHILDREN SERVED THAN IN DEALING WITH QUALITY CONTROL TO IMPROVE QUALITY THE COMMITTEE RECOMMENDED REDUCING CASELOADS FOR THE PROGRAM'S SOCIAL SERVICE WORKERS TO THIRTY FIVE FAMILIES EACH SOME STAFFERS NOW HANDLE ONE HUNDRED FAMILIES EACH AND MR. ZIGLER SAID HE KNEW OF WORKERS WHO HAD CASELOADS AS HIGH AS FIVE HUNDRED THE COMMITTEE ALSO SUGGESTED USING FEDERAL MONEY TO BUY NEW CENTERS IN SOME CASES ONE THIRD OF THE CURRENT CENTERS ARE SO SUBSTANDARD THAT THEY NEED TO BE REPLACED OR EXTENSIVELY REMODELED ACCORDING TO A SURVEY BY THE NATIONAL HEAD START ASSOCIATION THE COMMITTEE SAID HEAD START ALSO SHOULD BE EXPANDED TO SERVE PRESCHOOLERS FOR FULL EIGHT HOUR DAYS AS WELL AS TODDLERS THE PROGRAM CURRENTLY SERVES MAINLY FOUR YEAR OLDS IN HALF DAY PROGRAMS GIVEN THE LARGE NUMBER OF WORKING PARENTS SUCH PROGRAMS NO LONGER MEET FAMILIES' NEEDS THE REPORT SAID BUT THE COMMITTEE STRESSED THE NEED TO DEVELOP A PLAN TO SERVE CHILDREN UNDER AGE THREE RESEARCH SUGGESTS THE FIRST THREE YEARS OF LIFE ARE SO CRITICAL THAT CHILDREN SHOULDN'T WAIT UNTIL AGE FOUR TO BEGIN HEAD START PROGRAMS THE BOARD OF QUALMED INCORPORATED HAS RECOMMENDED THAT SHAREHOLDERS APPROVE THE COMPANY'S DELAYED SEVEN HUNDRED SEVENTY FIVE MILLION DOLLAR MERGER WITH THE OPERATOR OF A CALIFORNIA HEALTH MAINTENANCE ORGANIZATION THE PUEBLO COLORADO COMPANY POSTPONED A JANUARY SEVENTH SPECIAL MEETING OF SHAREHOLDERS THAT WAS TO HAVE VOTED ON THE MERGER WITH CLOSELY HOLD H. N. MANAGEMENT HOLDING INCORPORATED SO IT COULD STUDY THE IMPACT OF AN EIGHTY NINE MILLION DOLLAR COURT AWARD AGAINST THAT COMPANY'S HEALTH NET UNIT THE AWARD WAS GRANTED BY A CALIFORNIA JURY TO THE FAMILY OF A BREAST CANCER PATIENT WHO DIED AFTER HEALTH NET REFUSED TO PAY FOR AN EXPERIMENTAL BONE MARROW TRANSPLANT MALIK M. HASAN QUALMED'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THAT QUOTE WE BELIEVE HEALTH NET ACTED APPROPRIATELY AND IN A PRINCIPLED FASHION QUOTE AFTER REVIEWING REPORTS A COMMITTEE OF QUALMED DIRECTORS RECOMMENDED THAT QUALMED COMPLETE THE MERGER THE BOARD VOTED UNANIMOUSLY TO ACCEPT THE RECOMMENDATION AND RESCHEDULED THE SPECIAL MEETING FOR JANUARY TWENTY FIFTH BETZ LABORATORIES INCORPORATED SAID IT WILL TAKE A RESTRUCTURING CHARGE OF TWELVE POINT ONE MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE AGAINST FOURTH QUARTER EARNINGS THE TREVOSE PENNSYLVANIA ENGINEERED PROGRAMS AND SPECIALTY CHEMICAL PRODUCTS COMPANY SAID THE CHARGE STEMS FROM MOVES TO REDUCE OPERATING COSTS OVER THE LONG TERM INCLUDING WORK FORCE CUTS SHEDDING UNPRODUCTIVE ASSETS AND REORGANIZATION NET INCOME IN NINETEEN NINETY TWO'S FOURTH QUARTER WAS TWENTY POINT ONE MILLION DOLLARS OR SIXTY SEVEN CENTS A SHARE ON REVENUE OF ONE HUNDRED SEVENTY TWO POINT SIX MILLION DOLLARS R. DALE VONCANON VICE PRESIDENT FINANCE SAID THE BULK OF THE SAVINGS WOULD COME THROUGH SALES OF UNDERUSED WAREHOUSE SPACE IN THE PHILADELPHIA AREA AND THROUGH CENTRALIZATION OF SOME ADMINISTRATIVE FUNCTIONS CURRENTLY DUPLICATED IN THE COMPANY'S UNITS BETZ DOESN'T PLAN TO CLOSE ANY PLANTS AND WORK FORCE REDUCTIONS WILL BE QUOTE LESS THAN FIVE PERCENT QUOTE OF THE COMPANY'S FOUR THOUSAND TWO HUNDRED EMPLOYEES WORLD WIDE MR. VONCANON SAID IN DECEMBER THE COMPANY SAID SALES AND EARNINGS FOR NINETEEN NINETY THREE WOULD FALL SHORT OF NINETEEN NINETY TWO'S RESULTS LAST YEAR WAS THE FIRST TIME SINCE NINETEEN SIXTY FIVE THAT THE COMPANY HAD A SALES DOWNTURN ALCO STANDARD CORPORATION'S UNISOURCE WORLDWIDE INCORPORATED UNIT SAID IT SIGNED A CONTRACT VALUED AT MORE THAN THREE HUNDRED MILLION DOLLARS TO OUTSOURCE ITS DATA PROCESSING OPERATIONS TO AN INTERNATIONAL BUSINESS MACHINES CORPORATION SUBSIDIARY UNDER THE TEN YEAR AGREEMENT I. B. M.'S INTEGRATED SYSTEMS SOLUTIONS CORPORATION WILL PROVIDE HARDWARE AND SOFTWARE TO SERVICE UNISOURCE'S CORE DISTRIBUTION BUSINESS INCLUDING IMPROVING ITS NATIONAL ACCOUNTS SYSTEM AND AUTOMATING ITS WAREHOUSE SYSTEM ALL ONE HUNDRED TWENTY THREE OF UNISOURCE'S DATA PROCESSING EMPLOYEES WOULD BECOME EMPLOYEES OF INTEGRATED SYSTEMS SOLUTIONS BASED IN VALLEY FORGE PENNSYLVANIA UNISOURCE IS A DISTRIBUTOR OF PRINTING PAPER AND INDUSTRIAL PRODUCTS INTEGRATED SYSTEMS SOLUTIONS BASED IN WHITE PLAINS N. Y. IS A PROVIDER OF INFORMATION SERVICES THE SECURITIES AND EXCHANGE COMMISSION'S STAFF ACCUSED BANK OF BOSTON CORPORATION OF VIOLATING SECURITIES LAWS BY FAILING TO DISCLOSE FULLY THE DETERIORATION OF ITS LOAN PORTFOLIO IN NINETEEN EIGHTY NINE THE S. E. C. SAID ITS STAFF FILED A COMPLAINT WITH AN S. E. C. ADMINISTRATIVE LAW JUDGE REQUESTING A HEARING TO DETERMINE WHETHER THE COMPANY SHOULD HAVE MADE ADDITIONAL DISCLOSURES IN S. E. C. FILINGS REGARDING ESCALATING PROBLEMS IN ITS REAL ESTATE PORTFOLIO FOR NINETEEN EIGHTY NINE'S SECOND QUARTER AND YEAR END RESULTS THE S. E. C.'S STAFF ALLEGED THAT THE BANK OF BOSTON KNEW BUT DIDN'T ADEQUATELY DISCLOSE IN FILINGS THAT A REVIEW BY THE OFFICE OF THE COMPTROLLER OF CURRENCY OF THE BANK'S DOMESTIC REAL ESTATE PORTFOLIO HAD CONFIRMED QUOTE MAJOR PROBLEMS QUOTE IN THE PORTFOLIO THAT RESULTED IN THE DOWNGRADING OF LOANS TOTALING ABOUT ONE POINT ONE BILLION DOLLARS THE BANK IN A STATEMENT SAID WE BELIEVE THAT WE REPORTED FULLY BASED ON THE INFORMATION AVAILABLE TO US AT THE TIME BANK OF BOSTON WAS THE FIRST MAJOR NEW ENGLAND BANK TO REPORT REAL ESTATE LOAN PROBLEMS IN OCTOBER NINETEEN EIGHTY NINE WE ARE PROUD THAT OUR INDUSTRY LEADING QUICK ACTIONS IN DEALING WITH A DETERIORATING REAL ESTATE ENVIRONMENT LED TO US BEING THE FIRST MAJOR BANK TO PUT THESE PROBLEMS BEHIND US WE BELIEVE THAT THE S. E. C. HAS HAD THE BENEFIT OF HINDSIGHT IN BRINGING THIS PROCEEDING AND THAT ULTIMATELY WE WILL PREVAIL THE BANK ADDED LIKE MANY NEW ENGLAND BANKS BANK OF BOSTON WAS HARD HIT BY REAL ESTATE PROBLEMS IN THE DEPRESSED REGIONAL ECONOMY IN NINETEEN EIGHTY NINE RESULTING IN CONTINUED LOSSES THROUGH NINETEEN NINETY ONE IN RECENT QUARTERS THE BANK HAS REPORTED IMPROVED RESULTS FOR NINETEEN NINETY THREE'S THIRD QUARTER BANK OF BOSTON HAD NET INCOME OF FORTY ONE POINT FOUR MILLION DOLLARS OR THIRTY CENTS A SHARE AFTER AN EIGHTY FIVE MILLION DOLLAR PRETAX RESTRUCTURING CHARGE ASSETS TOTALED THIRTY NINE BILLION DOLLARS BANK OF BOSTON IS THE SECOND LARGEST BANK IN NEW ENGLAND THE S. E. C. COMPLAINT WAS ANNOUNCED AFTER THE STOCK MARKET CLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BANK OF BOSTON CLOSED AT TWENTY FOUR POINT ONE TWO FIVE DOLLARS UP THIRTY SEVEN POINT FIVE CENTS ON VOLUME OF TWO HUNDRED FORTY NINE THOUSAND FOUR HUNDRED SHARES THE S. E. C. SAID THAT IF ITS STAFF'S ALLEGATIONS ARE PROVEN TRUE IT COULD TAKE REMEDIAL ACTION THAT PROBABLY WOULD INVOLVE A CEASE AND DESIST ORDER REQUIRING THE COMPANY TO MAKE ADEQUATE DISCLOSURES IN THE FUTURE GERARD S. CASSIDY AN ANALYST AT HANCOCK INSTITUTIONAL EQUITY SERVICES SAID THAT SHAREHOLDER LAWSUITS PROBABLY WILL BE FILED IF THE JUDGE FINDS THAT BANK OF BOSTON DELIBERATELY HELD BACK DATA PROVING THAT HOWEVER WILL BE DIFFICULT BECAUSE THE BANK LIKE MANY OTHERS IN THE LATE NINETEEN EIGHTIES HAD POOR MONITORING SYSTEMS IN PLACE FOR ITS LOAN PORTFOLIO HE ADDED IN NINETEEN EIGHTY SEVEN AND NINETEEN EIGHTY EIGHT BANKS WERE GROWING RAPIDLY MOST EXPENSES WERE SPENT ON GROWING PORTFOLIOS MINIMAL MONEY WAS SPENT ON MONITORING PORTFOLIOS MR. CASSIDY SAID QUOTE WITH CONDITIONS DETERIORATING SO RAPIDLY AND BANK OF BOSTON HAVING A WEAK MONITORING SYSTEM I'M NOT SURE THEY WILLFULLY DID IT THEY JUST DIDN'T KNOW FOR NINETEEN EIGHTY NINE'S SECOND QUARTER BANK OF BOSTON HAD NET INCOME OF NINETY SEVEN POINT EIGHT MILLION DOLLARS OR ONE DOLLAR AND THIRTY FOUR CENTS A SHARE FOR ALL OF NINETEEN EIGHTY NINE THE BANK HAD NET OF SEVENTY POINT FOUR MILLION DOLLARS OR EIGHTY CENTS A SHARE AFTER A ONE HUNDRED FORTY SEVEN MILLION DOLLAR PRETAX GAIN THE YEAR END RESULTS FOLLOWED A THIRD QUARTER LOSS OF ONE HUNDRED TWENTY FIVE MILLION DOLLARS REUTERS HOLDINGS P. L. C. SAID IT PLANS TO LAUNCH A FINANCIAL TELEVISION SERVICE FOR THE FOREIGN EXCHANGE MARKET AROUND THE MIDDLE OF THE YEAR MARK WOOD EDITOR IN CHIEF OF THE LONDON BASED MEDIA COMPANY TOLD EXECUTIVES AND ANALYSTS AT A PALM SPRINGS CALIFORNIA MEDIA CONFERENCE THAT THE SERVICE WOULD BE AVAILABLE OVER THE WORKSTATIONS OF FOREIGN EXCHANGE DEALERS ALONGSIDE EXISTING DATA THE COMPANY INTENDS TO BEGIN THE SERVICE WITH LIVE VIDEO COVERAGE OF EVENTS OF INTEREST TO THE FOREIGN EXCHANGE MARKETS SUCH AS NEWS CONFERENCES BECAUSE IT WILL BE QUOTE EVENT DRIVEN QUOTE IT WILL NOT BEGIN AS A CONTINUOUS SERVICE SAID A SPOKESMAN FOR NEW YORK BASED REUTERS AMERICA THE SERVICE WILL BE AVAILABLE INITIALLY IN LONDON AND CONTINENTAL EUROPE REUTERS SAID IT EXPECTS EVENTUALLY TO OFFER IT WORLD WIDE PRODUCER PRICES FELL ZERO POINT ONE PERCENT IN DECEMBER DRIVEN BY SHARPLY FALLING ENERGY PRICES FOR ALL OF NINETEEN NINETY THREE LOWER ENERGY PRICES HELPED KEEP WHOLESALE PRICES IN CHECK LED BY A SIXTEEN POINT EIGHT PERCENT DROP IN GASOLINE PRICES THE PRICE OF FINISHED GOODS ROSE ONLY ZERO POINT TWO PERCENT LAST YEAR THE CORE RATE OF INFLATION WHICH EXCLUDES THE FOOD AND ENERGY SECTORS INCREASED ZERO POINT TWO PERCENT IN DECEMBER AND ZERO POINT FOUR PERCENT FOR THE YEAR THE BEST SHOWING SINCE THE U. S. BEGAN TRACKING THESE PRICES IN NINETEEN SEVENTY FOUR BOND PRICES SURGED AFTER THE INFLATION REPORT CALMED JITTERY INVESTORS THE TREASURY'S THIRTY YEAR ISSUE GAINED OVER THREE QUARTERS POINT ITS YIELD WAS SIX POINT ONE EIGHT PERCENT THE DOW INDUSTRIALS FELL ONE POINT SIX EIGHT TO THREE THOUSAND EIGHT HUNDRED FORTY EIGHT POINT SIX THREE WALT DISNEY AND CREDITOR BANKS ARE DUE TO START DISCUSSING A FINANCIAL RESTRUCTURING OF THE EURO DISNEY RESORT THIS MONTH AS A REVAMPED MARKETING STRATEGY KICKS IN AND PARK ATTENDANCE PICKS UP THE EMERGENCE IN THE PAST FEW DAYS OF A SECONDARY MARKET FOR ITS DEBT IS ANOTHER SIGN OF HOPE PARAMOUNT'S BOARD REJECTED VIACOM'S REVISED NINE POINT THREE BILLION DOLLAR BID AND STUCK TO ITS ENDORSEMENT OF A NINE POINT NINE BILLION DOLLAR OFFER BY Q. V. C. NETWORK THE DIRECTORS EMPHASIZED THAT FINAL OFFERS MUST BE MADE BY FEBRUARY FIRST UNDER BIDDING RULES BANK OF BOSTON ALLEGEDLY VIOLATED SECURITIES LAWS AND REGULATIONS BY FAILING TO DISCLOSE FULLY THE DETERIORATION OF ITS LOAN PORTFOLIO IN NINETEEN EIGHTY NINE ACCORDING TO AN S. E. C. ADMINISTRATIVE COMPLAINT THE S. E. C. PROPOSED THE FIRST SPECIFIC DISCLOSURE RULES FOR QUOTE WRAP QUOTE ACCOUNTS INVESTMENT PROGRAMS OFFERED BY BROKER DEALERS WHO WRAP TOGETHER ASSET MANAGEMENT FINANCIAL PLANNING AND BROKERAGE SERVICES FOR AN ANNUAL FEE THE WHITE HOUSE PLANS TO PRESS RUSSIA TO LIMIT ITS EXPORTS OF ALUMINUM AS PART OF CLINTON'S MOSCOW SUMMIT WITH YELTSIN FOLLOWING MONTHS OF TALKS OVER CHARGES THAT RUSSIAN COMPANIES ARE DUMPING ALUMINUM ON THE MARKETPLACE AT UNFAIRLY LOW PRICES MESA AGREED TO PAY UNOCAL FORTY TWO POINT EIGHT MILLION DOLLARS TO SETTLE A SECURITIES LAWSUIT STEMMING FROM A NINETEEN EIGHTY FIVE HOSTILE TAKEOVER EFFORT LED BY MESA'S BOONE PICKENS NEW YORK STOCK EXCHANGE TRADING VOLUME WAS THE SECOND HIGHEST IN EXCHANGE HISTORY LAST WEEK SECOND ONLY TO THE WEEK OF THE OCTOBER NINETEEN EIGHTY SEVEN CRASH A FEDERAL GRAND JURY IS INVESTIGATING IF DONALDSON LUFKIN AND JENRETTE OR ITS PARTNER IN A REAL ESTATE INVESTMENT VIOLATED BIDDING RULES IN A LOAN AUCTION CONDUCTED IN LATE NINETEEN NINETY TWO BY THE R. T. C. KENDALL SQUARE REPLACED ITS AUDITOR PRICE WATERHOUSE IN WHAT IT CALLED A FEE DISPUTE THE ACTION COMES LESS THAN TWO MONTHS AFTER PRICE WITHDREW ITS ENDORSEMENT OF KENDALL'S PREVIOUSLY REPORTED RESULTS ADVANCE PUBLICATIONS' CONDE NAST NAMED AS PRESIDENT STEVEN T. FLORIO CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OF THE NEW YORKER MAGAZINE TIMES MIRROR AND PACIFIC TELESIS UNVEILED A VENTURE FOR AN INFORMATION SERVICE AND ELECTRONIC MARKETPLACE CREATIVE ARTISTS AGENCY PLANS TO DEVELOP INFORMATIONAL TELEVISION PROGRAMMING THROUGH A JOINT VENTURE WITH N. S. BIENSTOCK AN AGENCY THAT REPRESENTS T. V. JOURNALISTS BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND SIX HUNDRED FORTY FOUR POINT ONE FIVE UP THIRTY FOUR POINT SEVEN EIGHT COMMODITIES OIL FOURTEEN DOLLARS AND THIRTY THREE CENTS A BARREL OFF FIFTY TWO CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY POINT NINE ONE UP ZERO POINT THREE FIVE SPOT INDEX ONE HUNDRED TWENTY EIGHT POINT EIGHT FIVE UP ZERO POINT FIVE SEVEN DOLLAR ONE HUNDRED TWELVE POINT TWO OH YEN OFF ZERO POINT TWO ZERO ONE POINT SEVEN THREE THREE SEVEN MARKS OFF ZERO POINT ZERO ZERO SEVEN NINE THE STUDENT LOAN MARKETING ASSOCIATION SAID INCREASED LOAN ACQUISITIONS LED TO AN EIGHT POINT THREE PERCENT GAIN IN FOURTH QUARTER PROFIT FOR THE QUARTER THE WASHINGTON D. C. EDUCATION LOAN PACKAGER AND SERVICER REPORTED NET INCOME OF ONE HUNDRED NINE POINT SIX MILLION DOLLARS OR ONE DOLLAR AND TWENTY SIX CENTS A SHARE COMPARED WITH NET OF ONE HUNDRED ONE POINT TWO MILLION DOLLARS OR ONE DOLLAR AND TEN CENTS A SHARE A YEAR EARLIER INTEREST INCOME DECLINED LESS THAN ONE PERCENT TO SIX HUNDRED THIRTEEN POINT ONE MILLION DOLLARS THE COMPANY KNOWN COMMONLY AS SALLIE MAE ACQUIRED ONE POINT EIGHT BILLION DOLLARS IN LOANS DURING THE FOURTH QUARTER COMPARED WITH ONE POINT SIX BILLION DOLLARS A YEAR EARLIER SALLIE MAE ALSO CONTINUED ITS SHARE REPURCHASE PROGRAM BUYING ONE POINT TWO MILLION SHARES IN THE FOURTH QUARTER AT DECEMBER THIRTY FIRST SALLIE MAE HAD EIGHTY FOUR POINT ONE MILLION SHARES OUTSTANDING COMPARED WITH EIGHTY NINE POINT FIVE MILLION A YEAR EARLIER TANDY CORPORATION FORT WORTH TEXAS SAID IT EXPECTS TO ADD MORE THAN THREE THOUSAND SIX HUNDRED JOBS THIS YEAR AS IT CONTINUES TO EXPAND ITS RETAIL OPERATIONS THE OPERATOR OF THE RADIO SHACK CHAIN OF ELECTRONICS STORES SAID MOST OF ITS JOB GROWTH WILL COME FROM ITS TWO NEWEST CHAINS COMPUTER CITY AND INCREDIBLE UNIVERSE TANDY SAID THE TWO UNITS ARE EXPECTED TO ADD THREE THOUSAND FOUR HUNDRED WORKERS THIS YEAR TANDY HAS SAID IT PLANS TO OPEN TWENTY FOUR NEW COMPUTER CITY STORES THIS YEAR AND SIX NEW INCREDIBLE UNIVERSE SUPERSTORES TANDY SAID RADIO SHACK'S WORK FORCE WILL GROW THIS YEAR BY ABOUT TWO HUNDRED PEOPLE PUBLIC SERVICE COMPANY OF NEW MEXICO ALBUQUERQUE N. M. SAID IT PLANS TO TAKE A FOURTH QUARTER WRITE DOWN OF ONE HUNDRED TWELVE MILLION DOLLARS OR TWO DOLLARS AND SIXTY NINE CENTS A SHARE RELATED TO AN EXPECTED RATE REDUCTION IN THE FOURTH QUARTER OF NINETEEN NINETY TWO THE UTILITY HAD A NET LOSS OF ONE HUNDRED THIRTY THREE POINT TWO MILLION DOLLARS OR THREE DOLLARS AND TWENTY THREE CENTS A SHARE AFTER CERTAIN CHARGES REVENUE WAS TWO HUNDRED SIXTEEN POINT SIX MILLION DOLLARS THE UTILITY SAID YESTERDAY THAT IT HAS AGREED WITH THE STAFF OF THE NEW MEXICO PUBLIC UTILITY COMMISSION TO REDUCE ELECTRIC RATES BY THIRTY MILLION DOLLARS OR SIX POINT FIVE PERCENT A YEAR THE AGREEMENT IS SUBJECT TO APPROVAL BY THE THREE MEMBERS OF THE COMMISSION A WRITE DOWN HAD BEEN EXPECTED BY SECURITIES ANALYSTS THUS PUBLIC SERVICE'S STOCK CLOSED UNCHANGED AT ELEVEN DOLLARS AND SEVENTY FIVE CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PUBLIC SERVICE SAID THAT IT WILL ACHIEVE THE RATE REDUCTION BY AMONG OTHER THINGS REDUCING OPERATING COSTS BY TEN MILLION DOLLARS A YEAR AND THE WRITE DOWN CLINTON SOUGHT THE APPOINTMENT OF A SPECIAL COUNSEL IN WHITEWATER THE PRESIDENT YIELDING TO RELENTLESS BIPARTISAN PRESSURE CALLED FOR THE APPOINTMENT OF A SPECIAL COUNSEL TO LOOK INTO HIS CONTROVERSIAL INVESTMENT IN THE FAILED ARKANSAS REAL ESTATE COMPANY WHITEWATER DEVELOPMENT QUOTE WE STILL KNOW THE CLINTONS DIDN'T DO ANYTHING WRONG QUOTE ASSERTED WHITE HOUSE AIDE STEPHANOPOULOS ATTORNEY GENERAL RENO WILL APPOINT THE SPECIAL COUNSEL WHO WILL REPORT TO HER BUT OPERATE INDEPENDENTLY OF THE JUSTICE DEPARTMENT THE COUNSEL WILL HAVE THE POWER TO ISSUE SUBPOENAS AND IF NECESSARY CONVENE A GRAND JURY THE WHITE HOUSE MOVE DIDN'T MOLLIFY REPUBLICAN LAWMAKERS WHO SAID THEY WOULD SEEK TO SET UP SPECIAL COMMITTEES TO PROBE THE ISSUES SURROUNDING THE CLINTONS' WHITEWATER INVESTMENT A UKRAINE ARMS ACCORD IS READY FOR SIGNING CLINTON ANNOUNCED AFTER A SHORT MEETING IN KIEV CLINTON SAID THE AGREEMENT ON ELIMINATING THE UKRAINIAN NUCLEAR ARSENAL WOULD BE SIGNED TOMORROW IN MOSCOW BY UKRAINE'S KRAVCHUK RUSSIA'S YELTSIN AND HIMSELF IN NAILING DOWN THE PACT CLINTON OFFERED INCREASED ECONOMIC AID AND SECURITY GUARANTEES FOR UKRAINE CLINTON LATER ARRIVED IN THE RUSSIAN CAPITAL SAYING HIS URGENT TASK THERE WOULD BE TO PRESS FOR REFORM AND AGAINST NATIONALISM THE U. S. PLANS TO HOLD BACK COMMITMENTS OF NEW AID TO RUSSIA UNTIL IT GETS ASSURANCES THAT YELTSIN WILL CONTINUE HIS MARKET REFORMS CLINTON WON RELUCTANT APPROVAL FROM THE LEADERS OF POLAND HUNGARY THE CZECH REPUBLIC AND SLOVAKIA FOR AN OFFER OF A COOPERATIVE ARRANGEMENT WITH NATO AS A FIRST STEP TOWARD FULL MEMBERSHIP PRESIDENT SALINAS DECLARED A UNILATERAL CEASE FIRE IN SOUTHERN MEXICO AND SAID SOLDIERS WERE ORDERED NOT TO FIRE UNLESS THEY COME UNDER ATTACK HE URGED REBELS TO TURN IN THEIR ARMS AND PROMISED TO PARDON THEM MEANWHILE MEDIATORS AND REBELS REPORTEDLY WERE POISED TO BEGIN TALKS SECRETARY OF STATE CHRISTOPHER PLANS TO MEET WITH CHINA'S FOREIGN MINISTER LATER THIS MONTH IN EUROPE AND IS LIKELY TO WARN THAT BEIJING MUST IMPROVE ITS HUMAN RIGHTS RECORD IF IT WANTS TO WIN RENEWAL OF ITS FAVORABLE TRADE STATUS CLINTON MUST DECIDE BY JUNE WHETHER TO RENEW THE PREFERENTIAL STATUS CHINA AND FRANCE ANNOUNCED THEY ARE PATCHING UP THEIR YEARLONG DIPLOMATIC RIFT WITH AN AGREEMENT UNDER WHICH FRENCH COMPANIES WILL BE BANNED FROM ANY FUTURE ARMS SALES TO TAIWAN IN RETURN CHINA WILL END ITS DE FACTO BAN ON THE AWARDING OF BIG BUSINESS CONTRACTS TO FRENCH FIRMS U. S. MILITARY OFFICIALS IN SOMALIA PULLED MOST AMERICAN SNIPER TEAMS OFF PAKISTAN'S U. N. POSTS AMID PAKISTANI COMMENTS THAT THE U. S. SHARPSHOOTERS MAY BE TOO AGGRESSIVE IN FIRING AT ARMED SOMALIS THE AMERICAN SNIPERS WERE INVOLVED IN THREE RECENT INCIDENTS INCLUDING ONE SUNDAY IN WHICH A SOMALI WOMAN WAS KILLED TWO MEDICAL RESEARCH TEAMS ANNOUNCED RELATED ADVANCES IN REGENERATING SEVERED SPINAL TISSUE IN RATS PRELIMINARY FINDINGS THAT IF SUCCESSFULLY REPLICATED MAY INDICATE POSSIBLE TREATMENTS FOR PEOPLE PARALYZED BY SPINAL INJURIES INVESTIGATORS FAILED TO FIND EVIDENCE OF ILLEGAL PAYMENTS BY REPUBLICANS TO SUPPRESS THE BLACK VOTE IN NEW JERSEY'S GUBERNATORIAL ELECTION AND HAVE ENDED THE PROBE FEDERAL AND STATE PROSECUTORS SAID THE INQUIRY RESULTED FROM COMMENTS MADE AND LATER RECANTED BY ED ROLLINS CAMPAIGN MANAGER FOR G. O. P. GOVERNOR ELECT CHRISTIE WHITMAN THE F. B. I. SAID IT IS INVESTIGATING ALLEGATIONS OF A CONSPIRACY IN LAST WEEK'S CROWBAR ATTACK ON SKATER NANCY KERRIGAN AT THE U. S. FIGURE SKATING CHAMPIONSHIPS IN DETROIT THE AGENCY REFUSED TO CONFIRM NEWS REPORTS THAT THE HUSBAND AND BODYGUARD OF RIVAL TONYA HARDING WERE QUESTIONED BOTH MEN AND HARDING HERSELF DENIED INVOLVEMENT VIRGINIA'S GOVERNOR WILDER WON'T CHALLENGE FELLOW DEMOCRAT ROBB FOR HIS SENATE SEAT WILDER SAID HE WAS LEAVING POLITICS AFTER A TWENTY FIVE YEAR POLITICAL CAREER CAPPED BY A TERM AS THE FIRST ELECTED BLACK GOVERNOR HE HAD SAID IN JUNE HE WOULD RUN AGAINST ROBB U. N. CHIEF BOUTROS GHALI HAS ISSUED A REPRIMAND TO THE FRENCH GENERAL IN CHARGE OF U. N. TROOPS IN THE BALKANS FOR HIS OUTSPOKEN CHALLENGES TO U. N. CIVILIAN OFFICIALS THE GENERAL HAS ARGUED THAT DECISIONS ON BOSNIA AIR STRIKES SHOULD BE LEFT TO THE MILITARY THE TRICK FOR BILL CLINTON TODAY WILL BE TO FIND A WAY TO NURTURE BORIS YELTSIN'S ECONOMIC REFORM INSTINCTS WHILE AT THE SAME TIME PROTESTING RUSSIA'S NASTINESS TOWARD ITS NEIGHBORS MR. CLINTON HAS TO ACCEPT THAT RUSSIAN FOREIGN POLICY WILL NOT ALWAYS DOVETAIL WITH AMERICAN PREFERENCES BUT HE ALSO HAS TO DEFINE LIMITS AND SHOW WHERE RUSSIAN POLICY COULD ENDANGER THE U. S. RUSSIAN FRIENDSHIP THOSE VITAL POINTS OF CONCERN HAVE TO INCLUDE THE BALTICS THE BALKANS POLAND AND UKRAINE LAST MONTH THE RUSSIANS PUBLISHED A REVISED MILITARY DOCTRINE APPARENTLY WRITTEN WITH LIMITED CIVILIAN INPUT THAT WAS A NETTLESOME DOCUMENT INDEED IT REVEALED THAT RUSSIAN MILITARY LEADERS DO NOT REGARD THE NEWLY INDEPENDENT STATES OF THE FORMER SOVIET UNION AS REAL COUNTRIES THE DOCUMENT REITERATED RUSSIAN CLAIMS FOR SPECIAL POWERS TO INTERVENE IN ITS NEIGHBORHOOD AND SHOWED THAT IMPERIAL THINKING IS UNDIMINISHED THE RUSSIANS ARE PRIMARILY CONCERNED ABOUT THE NATIONS TO THEIR SOUTH BUT THE GENERALS ARE ALSO FIERCELY ATTACHED TO THEIR PROPRIETORSHIP OF KALININGRAD AND OTHER PARTS OF THE BALTIC COAST MR. YELTSIN SEEMS TO HAVE LET THE IMPERIALISTS DETERMINE POLICY TOWARD THE NEAR ABROAD FIGURING THAT IT IS AN EASY PLACE TO GIVE GROUND WHILE HE SIDES WITH WESTERNIZERS ON OTHER MATTERS OF COURSE WORDS ARE NOT DEEDS ESPECIALLY IN RUSSIA BUT RUSSIAN TROOPS ALREADY HAVE INVOLVED THEMSELVES IN DISPUTES OUTSIDE RUSSIA'S BORDERS THEIR OPERATIONS LOOK PARTICULARLY NASTY IN GEORGIA GIVEN THE RECENT DEAL WITH EDUARD SHEVARDNADZE AND THE SUBSEQUENT MYSTERIOUS DEATH OF HIS RIVAL ZVIAD GAMSAKHURDIA YELTSINITES CLAIM THAT THESE ARE FREE LANCING OPERATIONS BY ROGUE GENERALS BUT THIS IS HARD TO BELIEVE GIVEN THE BREADTH OF SUCH OPERATIONS IN UKRAINE AND THE BALTICS THERE HAS BEEN NO MILITARY ACTION BUT THE COUNTRIES FEEL THREATENED NONETHELESS RUSSIAN TROOPS ARE OUT OF LITHUANIA BUT REMAIN IN LATVIA AND ESTONIA A HALF MILLION RUSSIAN SOLDIERS ARE STATIONED IN KALININGRAD A RUSSIAN BALTIC ENCLAVE SURROUNDED BY LITHUANIA AND POLAND BALTIC LEADERS COMPLAIN OF COVERT DESTABILIZING OPERATIONS AND UKRAINE IS BEING HARASSED THE DANGER IS THAT RUSSIA WILL ONCE AGAIN ACT LIKE AN EMPIRE ABROAD WHICH WOULD IN TURN FOSTER AUTHORITARIANISM AT HOME THE CLINTON ADMINISTRATION HAS BEEN LESS THAN FORTHRIGHT ABOUT ALL THIS AFTER THE LUDICROUS DIRECTIVE THIRTEEN IN WHICH THE CLINTONITES BANDIED THE IDEA OF U. N. PEACEKEEPING IN FORMER SOVIET REPUBLICS THE U. S. HAS UTTERED HARDLY A PEEP SURELY MR. CLINTON DOESN'T WANT TO STOKE ANTI AMERICAN PASSIONS BY PUBLICLY ATTACKING THE MILITARY BUT THERE IS NO WAY THESE GENERALS CAN BE APPEASED OR BROUGHT ROUND WITH SWEET CONSIDERATION THE U. S. HAS TO INSIST THAT MOSCOW RESPECT THE SOVEREIGNTY OF POST COMMUNIST NATIONS AND LEAVE THEM AT PEACE THAT INSISTENCE CAN BE DIRECTED ONLY AT RUSSIA'S PRESIDENT BETTING THAT THERE WILL BE HUGE DEMAND FOR INFORMATIONAL TELEVISION SHOWS IN THE SO CALLED FIVE HUNDRED CHANNEL T. V. UNIVERSE OF THE FUTURE POWERFUL CREATIVE ARTISTS AGENCY INCORPORATED SAID IT PLANS TO DEVELOP SUCH PROGRAMMING THROUGH A JOINT VENTURE WITH N. S. BIENSTOCK INCORPORATED AN AGENCY THAT REPRESENTS T. V. JOURNALISTS MICHAEL OVITZ CHAIRMAN OF CREATIVE ARTISTS PREDICTED IN AN INTERVIEW THAT NONFICTION PROGRAMMING INCLUDING INFORMATIONAL AND OTHER REALITY BASED T. V. SHOWS WILL BE QUOTE CRITICALLY IMPORTANT TO EVERY DISTRIBUTION SYSTEM QUOTE SUCH PROGRAMMING IS USUALLY FAR LESS EXPENSIVE TO PRODUCE THAN MOST ENTERTAINMENT PROGRAMMING MR. OVITZ AND RICHARD LEIBNER A PRINCIPAL AT N. S. BIENSTOCK DESCRIBED THE VENTURE AS A NATURAL FIT CREATIVE ARTISTS REPRESENTS SCORES OF TELEVISION PRODUCERS WRITERS AND DIRECTORS PEOPLE WHO WILL BE LOOKING TO CREATE INFORMATIONAL PROGRAMS N. S. BIENSTOCK ON THE OTHER HAND REPRESENTS MORE THAN THREE HUNDRED TELEVISION JOURNALISTS MANY OF WHOM WOULD BE CALLED UPON TO HOST THE PROGRAMS N. S. BEINSTOCK WHICH HAS BEEN LED FOR THE PAST TWENTY FIVE YEARS BY MR. LEIBNER AND HIS WIFE CAROLE COOPER COUNTS AMONG ITS CLIENTS DAN RATHER DIANE SAWYER MARIA SHRIVER AND MIKE WALLACE BUT IT ALSO REPRESENTS MANY LOCAL T. V. NEWS PERSONALITIES AS WELL AS JOURNALISTS WHO HOST SYNDICATED NEWS AND INFORMATION PROGRAMS THIS ALLIANCE WILL HELP THE CLIENTS AT BOTH AGENCIES TO TAKE ADVANTAGE OF PROGRAMMING OPPORTUNITIES CREATED BY THE CHANGES IN THE TELEVISION WORLD MR. LEIBNER SAID THE EXECUTIVES POINTED TO THE INCREASING STABLE OF PRIME TIME NETWORK NEWS PROGRAMS SHOWS SUCH AS TWENTY TWENTY THS DATELINE AND SIXTY MINUTES AS AN INDICATOR THAT SIMILAR PROGRAMS WILL BE NEEDED TO FILL THE PROGRAM SCHEDULES OF NEW NETWORKS MR. OVITZ SAID IDEAS FOR PROGRAMS COULD COME FROM ALMOST ANY DEPARTMENT AT CREATIVE ARTISTS A NEW NONFICTION BOOK FOR EXAMPLE COULD BE THE BASIS FOR AN INFORMATIONAL T. V. PROGRAM HE SAID HE SAID THAT THE AGENCY STRUCK THE DEAL FOR OUR T. V. CLIENT BASE BUT ADDED THAT IT WOULD TAKE ANY IDEAS OFFERED BY CLIENTS IN ITS FILM DIVISION THIS IS A MAJOR GROWTH AREA FOR OUR CLIENTELE MR. OVITZ ADDED UNLIKE OTHER MAJOR TALENT AGENCIES SUCH AS WILLIAM MORRIS AGENCY OR INTERNATIONAL CREATIVE MANAGEMENT CREATIVE ARTISTS DOESN'T HAVE A NEWS DIVISION PER SE BUT THE JOINT VENTURE EFFECTIVELY PUTS IT INTO THAT BUSINESS EXPANDING ONCE AGAIN BEYOND ITS CORE TALENT MANAGEMENT SERVICES A COUPLE OF YEARS AGO IT GOT INTO THE ADVERTISING BUSINESS HIRING CREATIVE EXECUTIVES WHO HELPED DEVELOP COMMERCIALS FOR COCA COLA COMPANY IT ALSO IS ACTIVE IN EXPLORING BUSINESS OPPORTUNITIES IN MULTIMEDIA THE CLINTON HEALTH CARE REFORM WAS INITIALLY DELIVERED TO THE PRESS ON FLOPPY DISK ONE OF THE ORIGINATORS OF MANAGED HEALTH CARE ECONOMIST ALAIN ENTHOVEN SEEMS TO BE SUGGESTING THAT THOSE DISKS BE REFORMATTED IN A SPEECH YESTERDAY ON THE CLINTON HEALTH CARE PROPOSAL HE SAID QUOTE PRICE CONTROLS DON'T AND WON'T WORK AND THEREFORE THE FIRST THING CONGRESS SHOULD DO IS DELETE PAGES ONE THROUGH ONE THOUSAND THREE HUNDRED FORTY TWO OF CLINTON'S ONE THOUSAND THREE HUNDRED FORTY TWO PAGE BILL QUOTE PROFESSOR ENTHOVEN ALSO THINKS THE PLAN'S INTENDED GOALS OF HOLDING DOWN THE RISE IN HEALTH COSTS TO ONE POINT FIVE PERCENT BY NINETEEN NINETY SIX AND EVENTUALLY ZERO IS ALSO WEAK THESE ARE GOALS THAT HAVE NOT BEEN SEEN IN THE FREE WORLD IN THE HISTORY OF HEALTH CARE IT SOUNDS TO US AS IF IT'S TIME FOR THE AMBITIOUS PROPOSAL'S BUILDERS TO SEE THAT THIS MODEL ISN'T GOING TO FLY TWO TEAMS OF RESEARCHERS ANNOUNCED RELATED ADVANCES IN REGENERATING SEVERED SPINAL TISSUE IN RATS PRELIMINARY FINDINGS THAT IF SUCCESSFULLY REPLICATED MAY INDICATE POSSIBLE TREATMENTS FOR PEOPLE PARALYZED BY SPINAL INJURIES A TEAM OF SCIENTISTS AT KYOTO UNIVERSITY SAID THAT USING RAT FETAL TISSUE TRANSPLANTS IT HAD RESTORED VIRTUALLY FULL MOTOR FUNCTION TO NEWBORN RATS WHOSE SPINAL CORDS HAD BEEN SEVERED BY APPLYING TWO BIOCHEMICALS TO THE SITE OF AN INJURY A EUROPEAN RESEARCH GROUP FOUND IT COULD STIMULATE THE GROWTH OF SPINAL NERVE CELLS IN A WAY THAT COULD AID REGENERATION OF DAMAGED SPINAL TISSUE BOTH STUDIES APPEAR IN TODAY'S ISSUE OF THE BRITISH JOURNAL NATURE QUOTE THESE TWO PAPERS MARK AN IMPORTANT STEP FORWARD QUOTE SAID MARTIN SCHWAB A UNIVERSITY OF ZURICH NEUROCHEMIST WHO LED THE EUROPEAN GROUP WE SHOWED YOU CAN GET NERVE FIBERS IN ADULT ANIMALS TO SUBSTANTIALLY REGENERATE WHILE THE JAPANESE PAPER SHOWS YOU CAN GET FUNCTIONAL REPAIR OF DAMAGED SPINAL TISSUE MANY NEUROSCIENTISTS NOW BELIEVE THAT EFFECTIVE TREATMENT OF SPINAL INJURIES WILL REQUIRE A COMBINATION OF SUCH BIOCHEMICAL TREATMENTS AND SURGICAL TRANSPLANTATION TO BE SURE BOTH RESEARCH STUDIES HAVE IMPORTANT LIMITATIONS AND SCIENTISTS IN THE FIELD STRESS IT WILL TAKE SOME TIMEPERHAPS AS LONG AS A DECADE BEFORE THEY CAN EVEN BEGIN EXPERIMENTING WITH THESE TECHNIQUES IN HUMANS THE EUROPEAN STUDY HAS AS YET GONE UNCHALLENGED THE JAPANESE STUDY HOWEVER HAS ALREADY DRAWN FIRE FROM SOME U. S. SCIENTISTS WHO CLAIM IT IS SLOPPY AND UNSUBSTANTIATED SUCH CONTROVERSY IS PAR FOR THE COURSE IN THE INTENSELY COMPETITIVE FIELD OF SPINALINJURY TREATMENT WHICH HAS LONG BEEN PLAGUED BY GRAND CLAIMS THAT COULD NOT BE REPLICATED BY OTHERS IN ALL CASES LIKE THIS YOU HAVE TO SEE THAT A NEW TECHNIQUE WORKS IN SOMEONE ELSE'S HANDS SAID PAUL PATTERSON A NEUROSCIENTIST AT THE CALIFORNIA INSTITUTE OF TECHNOLOGY THERE HAVE BEEN SO MANY FALSE HOPES OVER THE YEARS THAT IT MAKES YOU VERY SKEPTICAL UNLIKE MOST INJURIES WHICH HEAL NATURALLY SERIOUS SPINAL CORD INJURIES OFTEN LEAVE THEIR VICTIMS PERMANENTLY PARALYZED THAT'S BECAUSE THE ALL IMPORTANT SPINAL NERVE CELLS THAT TRANSMIT BOTH SENSORY INFORMATION AND THE MOTOR SIGNALS THAT CONTROL MOVEMENT LACK THE ABILITY TO GROW THROUGH THE SCAR TISSUE AND ACROSS THE GAPS LEFT BY INJURY SCIENTISTS HAVE LONG SOUGHT TO HELP SUCH NERVE CELLS REGENERATE IN LABORATORY ANIMALS BY GRAFTING OTHER NERVE TISSUE INTO SPINAL INJURIES THE IDEA IS THAT SPINAL NERVE CELLS MIGHT FIND IT EASIER TO GROW ALONG AN EXISTING BRIDGE OF NERVE TISSUE SUCH RESEARCH HOWEVER HAS BEEN CONTROVERSIAL SINCE MANY EXPERIMENTERS HAVE STUDIED ANIMALS WHOSE SPINAL CORDS WEREN'T FULLY SEVERED IN AN EFFORT TO SIMULATE CRUSHING INJURIES WHILE SOME RESEARCHERS HAVE HAD SUCCESS IN RESTORING MOTOR CONTROL THAT RESTORATION HAS USUALLY BEEN LIMITED INTO THIS TEMPEST STEPPED KYOTO UNIVERSITY NEUROSURGEON YASUSHI IWASHITA AND TWO COLLEAGUES WHO CLAIMED TO HAVE TAKEN AN EXTRA STEP FORWARD BY RESTORING NEARLY FULL MOTOR FUNCTION IN RATS WORKING WITH THIRTY TWO NEWBORN RATS WHOSE SPINAL CORDS HAD BEEN COMPLETELY SEVERED DOCTOR IWASHITA'S TEAM TRANSPLANTED SEGMENTS OF EMBRYONIC RAT SPINAL CORD TISSUE INTO THE CUTS OF THE TWENTY TWO RATS WHO SURVIVED THE PROCEDURE FOURTEEN RECOVERED ALMOST FULLY WITH GRAFTS THAT BLENDED SEAMLESSLY INTO THE CONNECTING SPINAL TISSUE DOCTOR IWASHITA SAID MORE IMPORTANT HE SAID THESE RATS COULD NOT ONLY WALK BUT RAN CLIMBED AND EVEN LANDED ON THEIR FEET WHEN DROPPED UPSIDE DOWN VERY MUCH LIKE NORMAL RATS THE DEGREE OF RECOVERY IS INCOMPARABLY GREATER THAN IN ANY PREVIOUS EXPERIMENT DOCTOR IWASHITA SAID ANDERS BJORKLUND A NEUROBIOLOGIST AT THE UNIVERSITY OF LUND IN SWEDEN CALLED DOCTOR IWASHITA'S RESULTS QUOTE TRULY REMARKABLE QUOTE IN AN ACCOMPANYING COMMENTARY IN NATURE YET MANY U. S. SCIENTISTS WERE FAR FROM IMPRESSED POINTING OUT THAT THE NERVOUS SYSTEMS IN NEWBORN RATS ARE NATURALLY MORE LIKELY TO REGENERATE THAN THOSE IN ADULT RATS DOCTOR IWASHITA SAID HE IS ATTEMPTING TO DUPLICATE HIS WORK WITH ADULT RATS BUT SO FAR HASN'T MET WITH SUCCESS OTHER RESEARCHERS FAULTED DOCTOR IWASHITA'S LAB FOR SLOPPINESS AND LESS THAN FULL DISCLOSURE IN HIS EXPERIMENTS GEORGETOWN UNIVERSITY NEUROBIOLOGIST BARBARA BREGMAN WHO IS DOING HER OWN SPINAL NERVE RESEARCH IN COLLABORATION WITH DOCTOR SCHWAB CALLED THE JAPANESE RESEARCH TRASH CHARGING FOR INSTANCE THAT THE RESEARCH TEAM DIDN'T PUT THE RATS THROUGH WIDELY KNOWN QUANTITATIVE TESTS TO SUPPORT THEIR CLAIM OF FULL MOTOR RECOVERY DOCTOR IWASHITA INSISTED THAT HIS DATA GATHERED BY OBSERVATION ARE SUFFICIENT TO SUPPORT THE PAPER'S CLAIMS ALTHOUGH HE SAID HE PLANNED TO DO THE QUANTITATIVE TESTS IN FUTURE EXPERIMENTS BY CONTRAST THE U. S. CRITICS OF DOCTOR IWASHITA APPLAUDED THE NEWS FROM DOCTOR SCHWAB'S GROUP IN EUROPE THAT TEAM WHICH WORKED WITH YOUNG ADULT RATS INSTEAD OF NEWBORNS BUT DIDN'T SEVER THEIR SPINES COMPLETELY SAID IT DISCOVERED THAT TWO KEY BIOCHEMICALS CAN WORK TOGETHER TO ACCELERATE THE GROWTH OF SPINAL NERVE CELLS AS MUCH AS TWENTY TIMES OVER THE PAST FEW YEARS SCIENTISTS HAVE UNCOVERED A VARIETY OF SO CALLED NERVE GROWTH FACTORS THAT ENCOURAGE NERVE CELLS TO PROLIFERATE USING ONE SUCH GROWTH FACTOR KNOWN AS N. T. THREE DOCTOR SCHWAB'S TEAM ENCOURAGED SEVERED SPINAL NERVE CELLS IN RATS TO SPROUT DENSE CLOUDS OF NEW NERVE FIBERS UNDER N. T. THREE TREATMENT ALONE HOWEVER THESE FIBERS RARELY GREW TO BE LONGER THAN ABOUT ONE MILLIMETER NOT LONG ENOUGH TO BRIDGE THE SITE OF AN INJURY DOCTOR SCHWAB'S GROUP HOWEVER HAD ANOTHER TRICK UP ITS SLEEVE HAVING EARLIER DISCOVERED THAT ADULT RATS NATURALLY PRODUCE TWO PROTEINS THAT INHIBIT NERVE GROWTH THE SCIENTISTS TURNED TO AN ANTIBODY KNOWN AS IN ONE THAT WOULD SUPPRESS THOSE INHIBITING PROTEINS WHEN THEY TESTED THE COMBINATION OF IN ONE AND N. T. THREE THE SEVERED NERVE CELLS SPROUTED EXTREMELY LONG FIBERS IN ONE CASE AS LONG AS TWO CENTIMETERS SUCH NERVE CELL GROWTH HAS THE POTENTIAL TO RESTORE SOME SENSORY AND MOTOR FUNCTIONS DOCTOR SCHWAB SAID IN FACT DOCTOR BREGMAN SAYS SHE HAS STARTED TO SEE SOME IMPROVEMENT IN MOTOR CONTROL AFTER TREATING RATS USING DOCTOR SCHWAB'S TECHNIQUES NEW YORK STATE ELECTRIC AND GAS CORPORATION BINGHAMTON N. Y. SAID IT WILL SLASH ITS WORK FORCE BY SIXTEEN PERCENT AND CONSOLIDATE SEVERAL OFFICES AS PART OF A COST CUTTING PROGRAM THE ELECTRIC UTILITY SAID IT WOULD TRIM EIGHT HUNDRED JOBS INCLUDING ABOUT TWO HUNDRED THROUGH ATTRITION UNDER THE PROGRAM THE COMPANY SAID THE CUTS INCLUDE CORPORATE STAFF IN ADDITION THE REORGANIZATION WILL INVOLVE LOCAL SALARIED SUPERVISORY POSITIONS NEW YORK STATE ELECTRIC AND GAS SAID THE PLAN WOULDN'T REQUIRE A RESTRUCTURING CHARGE THE COMPANY SAID THE WEAK STATE ECONOMY AND INCREASING TAX EXPENSES PROMPTED THE REORGANIZATION AMONG SPECIFIC CHANGES THE COMPANY PLANS TO CLOSE TWENTY EIGHT SATELLITE WALK IN PAY LOCATIONS LEAVING IT WITH THIRTEEN WALK IN LOCATIONS IN ADDITION IT WILL CONSOLIDATE ELECTRIC AND GAS CREWS IN SOME REGIONS NEWPARK RESOURCES INCORPORATED SAID IT WILL TAKE A ONE POINT SEVEN MILLION DOLLAR ONE TIME CHARGE TO NINETEEN NINETY THREE FOURTH QUARTER EARNINGS TO COVER COSTS OF SHEDDING ITS MARINE REPAIR OPERATION IN HOUSTON THE COMPANY WILL BEGIN REPORTING THOSE RESULTS AS A DISCONTINUED OPERATION AS OF THE NINETEEN NINETY THREE FOURTH QUARTER IN THE YEAR AGO FOURTH QUARTER THE NEW ORLEANS BASED COMPANY POSTED EARNINGS OF ONE POINT FIVE MILLION DOLLARS OR SIXTEEN CENTS A SHARE NEWPARK ALSO SAID IT LEASED THE OPERATION TO A UNIT OF CLOSELY HELD SFA INDUSTRIES INCORPORATED OF HOUSTON AND GRANTED THAT COMPANY AN OPTION TO PURCHASE THE FACILITY NEWPARK SAID IT ACCEPTED A COMMITMENT FOR A NINE MILLION DOLLAR SALE AND LEASEBACK FINANCING FROM REPUBLIC FINANCIAL CORPORATION OF DENVER FOR THE ASSETS OF THE REPAIR BUSINESS NEWPARK SAID IT PLANS TO USE THE MONEY TO REDUCE SHORT TERM BANK BORROWINGS AND EXPAND ITS CORE INTEGRATED SERVICES TO THE OIL AND NATURAL GAS INDUSTRY SEPARATELY NEWPARK SAID THAT A SHAREHOLDER WHO ACQUIRED SEVEN HUNDRED THOUSAND SHARES IN EXCHANGE FOR CANCELING FIVE POINT FOUR MILLION DOLLARS IN NEWPARK DEBTS COMPLETED THE SALE OF THOSE SHARES MONDAY TERMS WEREN'T DISCLOSED NEWPARK IS AN ENVIRONMENTAL MANAGEMENT AND OIL FIELD CONSTRUCTION COMPANY WITH OPERATIONS PRINCIPALLY IN LOUISIANA AND TEXAS BORLAND INTERNATIONAL INCORPORATED SCOTTS VALLEY CALIFORNIA SAID IT AGREED TO ACQUIRE REPORTSMITH INCORPORATED A CLOSELY HELD SOFTWARE MAKER FOR STOCK VALUED AT ABOUT EIGHTEEN MILLION DOLLARS BORLAND A MAKER OF PERSONAL COMPUTER SOFTWARE SAID WILL TAKE A WRITE OFF OF AT LEAST A MAJORITY OF THE ACQUISITION PRICE IN ITS FISCAL FOURTH QUARTER ENDING MARCH THIRTY FIRST OR ITS FIRST QUARTER ENDING JUNE THIRTIETH BORLAND SAID IT WILL ACQUIRE REPORTSMITH WHICH MAKES SOFTWARE THAT SIMPLIFIES TAPPING INTO CORPORATE DATABASES AND CREATING REPORTS IN EXCHANGE FOR ABOUT ONE POINT TWO MILLION SHARES OF BORLAND STOCK BORLAND WILL HAVE ABOUT TWENTY EIGHT MILLION SHARES OUTSTANDING AFTER THE ACQUISITION WHICH IT EXPECTS TO COMPLETE IN MARCH OR APRIL BORLAND'S STOCK CLOSED AT FIFTEEN DOLLARS UNCHANGED IN NASDAQ STOCK MARKET TRADING CANADIAN OCCIDENTAL PETROLEUM LIMITED SAID ITS MOST SIGNIFICANT OVERSEAS OIL DISCOVERY MAY BE BIGGER THAN PREVIOUSLY THOUGHT THE CALGARY ALBERTA OIL PRODUCER SAID AN INDEPENDENT ASSESSMENT OF THE OIL RESERVES ATTRIBUTABLE TO THE MASILA BLOCK REPUBLIC OF YEMEN AT DECEMBER THIRTY FIRST NINETEEN NINETY THREE ESTIMATED THE OIL FIELD'S RESERVES AT FIVE HUNDRED FORTY SIX MILLION BARRELS IT SAID THE NEW ESTIMATE OF THREE HUNDRED SEVENTEEN MILLION BARRELS OF PROVED RESERVES AND TWO HUNDRED TWENTY NINE MILLION BARRELS OF PROBABLE RESERVES IS EIGHTEEN PERCENT HIGHER THAN A DECEMBER THIRTY FIRST NINETEEN NINETY TWO ESTIMATE OF THE SAME OIL FIELD CANADIAN OCCIDENTAL HAS A FIFTY TWO PERCENT INTEREST IN THE MASILA BLOCK IT SAID ITS ESTIMATED SHARE OF THE BLOCK'S OIL RESERVES HAS RISEN TO TWO HUNDRED EIGHTY FOUR MILLION BARRELS FROM TWO HUNDRED FORTY ONE MILLION BARRELS IT WAS ONCE THE MOST CONTROVERSIAL THING ON WALL STREET WITH A POPULARITY RATING JUST THIS SIDE OF IVAN BOESKY PROGRAM TRADING THE QUICK COMPUTER AIDED TRADING OF MANY STOCKS AT ONCE ACCOUNTED FOR A RECORD ELEVEN POINT NINE PERCENT OF OVERALL NEW YORK STOCK EXCHANGE VOLUME LAST YEAR THE MOST SINCE THE EXCHANGE STARTED RELEASING PROGRAM TRADING NUMBERS SIX YEARS AGO TRADERS SAY PROGRAM TRADING CONTINUES TO ACCELERATE MARKET MOVEMENTS BOTH UP AND DOWN SUCH AS YESTERDAY MORNING'S SHARP DECLINES BUT THERE ISN'T A BIG PUBLIC OUTCRY ANYMORE ONE REASON THIS IS A BULL MARKET AND ON MOST DAYS THE MARKET RECOVERS BEFORE THE END OF THE DAY AS IT DID YESTERDAY WHEN THE DOW JONES INDUSTRIAL AVERAGE CLOSED JUST ONE POINT SIX EIGHT POINTS LOWER AFTER BEING DOWN TWENTY FIVE SOME TRADERS EVEN SAY PROGRAM TRADING HAS HELPED TO KEEP THE MARKET IN A TRADING RANGE BY QUICKLY STIFLING RALLIES AND MITIGATING DECLINES IT HAS BEEN A LONG TIME SINCE THERE WAS A HAIR RAISING MARKET DEBACLE THAT COULD BE BLAMED ON PROGRAM TRADING STOCK MARKET OFFICIALS HAVE NOTICED THE RECORD AMOUNTS OF PROGRAM TRADING JAMES COCHRANE A BIG BOARD SENIOR VICE PRESIDENT AND CHIEF ECONOMIST SAYS QUOTE WE CONTINUE TO MONITOR PROGRAM TRADING AS CAREFULLY AS WE EVER HAVE QUOTE BUT HE SAYS THAT PEOPLE JUST AREN'T AS INTERESTED IN THE TOPIC AS BEFORE MR. COCHRANE SAYS THAT THREE OR FOUR YEARS AGO WHEN HE WOULD BE ON THE ROAD GIVING A SPEECH RIGHT OUT OF THE BOX YOU'D GET TELL ME ABOUT PROGRAM TRADING NOW WE RARELY GET A QUESTION EXECUTIVES AT MAJOR BROKERAGE FIRMS SAY IT'S A SIMILAR STORY WITH THEM WHEN PROGRAM TRADING IS GOING ON THE UPSIDE PEOPLE DON'T COMPLAIN ASSERTS DALE HOLZEN A DEAN WITTER DISCOVER AND COMPANY BROKER IN COCOA BEACH FLORIDA WHO HAS BEEN A CRITIC OF PROGRAM TRADING HE SAYS PROGRAM TRADERS ARE STILL CONTROLLING THE MARKET ALBEIT WITHIN A TIGHTER TRADING RANGE THAN BEFORE BUT IF THE MARKET DECLINES SHARPLY IN COMING MONTHS AS SOME ANALYSTS FEAR IT MIGHT PEOPLE WILL CLAMOR THAT IT'S BAD AGAIN MR. HOLZEN SAYS THE AVERAGE THIRTY ONE POINT SIX MILLION DAILY SHARES TRADED IN PROGRAM TRADING STRATEGIES LAST YEAR WAS DOUBLE THE AMOUNT THAT WAS BEING DONE DAILY IN THE AFTERMATH OF THE NINETEEN EIGHTY SEVEN MARKET CRASH BACK THEN INVESTMENT MANAGER NEUBERGER AND BERMAN ATTACKED THE PRACTICE IN FULL PAGE ADS AS THE NUMBERS RACKET ON WALL STREET AND AN AMERICAN STOCK EXCHANGE SURVEY SHOWED THAT MOST INVESTORS BLAMED PROGRAM TRADING FOR RUINING THE STOCK MARKET BROKERAGE FIRMS DOING A LOT OF PROGRAM TRADING NO LONGER ARE THE OBJECT OF RIDICULE AND SCORN ASKED IF NOMURA SECURITIES INTERNATIONAL INCORPORATED WHICH DID THE SECOND LARGEST VOLUME OF PROGRAM TRADING LAST YEAR IS EVER ABUSED FOR PROGRAM TRADING A SPOKESMAN SAYS QUOTE NO THE CONTROVERSY WAS IN THE NINETEEN EIGHTIES QUOTE NOMURA IS THE U. S. UNIT OF JAPAN'S NOMURA SECURITIES JOSEPH SCHMUCKLER NOMURA SECURITIES INTERNATIONAL'S HEAD OF EQUITY DERIVATIVES PRODUCTS TRADING ADDS PACKAGE TRADING AND DERIVATIVE TRADING WHICH WAS SO CONTROVERSIAL IN THE EIGHTIES AND INTO THE NINETIES HAS BECOME A MORE MAINSTREAM PRODUCT THE BIGGEST PROGRAM TRADER ON THE BIG BOARD LAST YEAR WITH AN AVERAGE FOUR POINT SIX MILLION PROGRAM SHARES TRADED A DAY WAS MORGAN STANLEY GROUP INCORPORATED THE SECURITIES FIRM PULLED BACK FROM PROGRAM TRADING FOR ITS OWN ACCOUNT AMID THE POST CRASH UPROAR CHAIRMAN RICHARD FISHER SAYS THE PROGRAM TRADING THE FIRM DOES IS FOR CLIENTS NOT THE FIRM'S OWN SPECULATION THAT'S ALL CUSTOMER BUSINESS MR. FISHER SAYS THE CUSTOMER BUSINESS WAS THE IMPORTANT BUSINESS ANYWAY HE ADDS THAT PROGRAM TRADING IS VERY TECHNOLOGICALLY BASED WHAT THIS PROVES IS WE HAVE A VERY COMPETITIVE TECHNOLOGY THE BIG BOARD DEFINES PROGRAM TRADING AS THE BUYING OR SELLING OF A BASKET OF FIFTEEN OR MORE DIFFERENT STOCKS WITH A MARKET VALUE OF ONE MILLION DOLLARS OR MORE THE MOST CONTROVERSIAL FORM OF PROGRAM TRADING IS STOCK INDEX ARBITRAGE IN WHICH TRADERS TRY TO PROFIT FROM BRIEF PRICE SWINGS IN STOCKS AND THE FUTURES MARKETS BUT IT'S TOUGHER TO MAKE MONEY DOING THAT THESE DAYS COMPARED WITH THE NINETEEN EIGHTIES FOR MOST FIRMS INCLUDING MORGAN STANLEY PROGRAM TRADING IS MAINLY USED FOR OTHER STRATEGIES NOW MR. FISHER SAYS HIS FIRM REGARDS PROGRAM TRADING AS A QUOTE CUSTOMER SERVICE QUOTE THAT ALLOWS CUSTOMERS TO ASSEMBLE OR LIQUIDATE MULTISTOCK PORTFOLIOS RAPIDLY IT ISN'T ANY LONGER A WAY FOR HIS FIRM TO MAKE A LOT OF MONEY ON MARKET SWINGS HE ADDS THE BIG GAINS HAVE BEEN ARBITRAGED OUT SAYS MR. FISHER PROGRAM TRADING IS AN INTEGRAL PART OF THE MARKET TODAY BUT IT'S NOT SOMETHING THAT LENDS ITSELF TO VERY LARGE GAINS OR LOSSES AND THEREFORE DOESN'T HAVE THE LARGE MARKET IMPACT IT HAD BEFORE WITH THE INCREASED ROLE OF MUTUAL FUNDS AND OTHER INSTITUTIONS IN THE MARKET THE TRADERS SAY THAT PROGRAM TRADING IS USED ROUTINELY BY MOST BROKERAGE FIRMS TO BUY AND LIQUIDATE MULTISTOCK POSITIONS QUICKLY ON THE EXCHANGE PROGRAM TRADING HAS BECOME TERRIFICALLY ROUTINE AS ONE BIG BOARD FLOOR BROKER PUTS IT PROFESSIONAL TRADERS PREPARE THEMSELVES FOR IT THEY'VE BEEN ABLE TO ATTENUATE THE BLIPS IT HAS BECOME JUST ANOTHER STRATEGY THE MARKET ADJUSTS TO INDEX ARBITRAGE USED TO ACCOUNT FOR ABOUT HALF OF ALL PROGRAM TRADING FOR EXAMPLE FIFTY ONE PERCENT IN NINETEEN NINETY ONE BUT LAST YEAR INDEX ARBITRAGE ACCOUNTED FOR JUST THIRTY EIGHT PERCENT OF SUCH TRADING A TYPICAL PROGRAM TRADE THESE DAYS SAYS THE BIG BOARD'S MR. COCHRANE INVOLVES A PORTFOLIO MANAGER'S BUYING A GLOBAL PACKAGE OF UTILITY STOCKS QUOTE AND IT COMES OUT AS A PROGRAM QUOTE HE SAYS WHATEVER THE TYPE PROGRAM TRADING APPEARS SET TO GROW EVEN MORE THE BIG BOARD HAS BEEN PUSHING TO ATTRACT MORE PROGRAM TRADING FROM BIG INVESTORS THAT USED TO BE DONE IN LONDON WHERE RULES ABOUT DISCLOSURE ARE LOOSER A NEW BIG BOARD AFTER HOURS TRADING SESSION WAS SET UP WITH SLACKER RULES ABOUT DISCLOSURE AND ABOUT HALF OF THAT LONDON TRADING HAS NOW BEEN REPATRIATED THE BIG BOARD SAYS INDEED OF THE RECORD ELEVEN POINT NINE PERCENT OF OVERALL TRADING THAT PROGRAM TRADING ACCOUNTED FOR IN NINETEEN NINETY THREE ABOUT A PERCENTAGE POINT REFLECTS THIS NEWLY ABSORBED TRADING THE EXCHANGE ADDS AT THE SAME TIME NEW RULES PUT IN AT THE BIG BOARD AFTER THE CRASH APPEAR TO BE HELPING TO KEEP PROGRAM TRADING UNDER CONTROL AT LEAST FOR NOW PROGRAM TRADING IS EFFECTIVELY STIFLED ANY TIME THE DOW JONES INDUSTRIALS RISE OR FALL FIFTY POINTS THIS COLLAR WAS ACTIVATED SIXTEEN TIMES IN NINETEEN NINETY TWO BUT ONLY NINE TIMES IN NINETEEN NINETY THREE A REFLECTION OF HOW RARE IT IS FOR THE MARKET TO EVEN ATTEMPT A BIG SWING CRITICS SAY ALL THAT MEANS IS THAT PROGRAM TRADERS ARE ADEPT AT PUSHING THE MARKET AROUND WITHIN A TRADING RANGE THAT IS PLUS OR MINUS FIFTY POINTS THE MARKET COULD STILL DECLINE SHARPLY OVER TIME OF COURSE BUT A SINGLE DAY LIKE IN EIGHTY SEVEN PROBABLY WOULDN'T HAPPEN SAYS MR. COCHRANE REFERRING TO THE INDUSTRIAL AVERAGE'S FIVE HUNDRED EIGHT POINT CRASH ON OCTOBER NINETEENTH HE CITES THE FIFTY POINT COLLAR AND OTHER NEW RULES THAT WOULD KICK IN DURING BIGGER MARKET DECLINES THE WHOLE PHILOSOPHY HAS BEEN THROW SOME SAND IN THE GEARS GIVE PEOPLE A CHANCE TO CATCH THEIR BREATH BROKERS LIKE DEAN WITTER'S MR. HOLZEN AREN'T CONVINCED THAT ALL IS WELL THEY SAY PROGRAM TRADING STILL CAUSES HEADACHES EVEN WHEN THE MARKET ISN'T RISING OR FALLING SIXTY POINTS A DAY AS OFTEN AS IT ONCE DID MR. HOLZEN SAYS HE CONSTANTLY HAS TO ASSURE SMALL INVESTOR CLIENTS THAT QUICK TWENTY POINT OR THIRTY POINT DECLINES IN THE MARKET AREN'T NECESSARILY IMPORTANT YESTERDAY MORNING FOR EXAMPLE THE PROGRAM PROPELLED DECLINE IN THE MARKET QUOTE HAD PEOPLE REALLY CONCERNED THEY WERE SAYING IS THIS THE BEGINNING OF THE CORRECTION WE ARE LOOKING FOR AND SOME INVESTORS PROBABLY SOLD WHEN THEY SHOULDN'T HAVE HE SAYS PROGRAM TRADING CONCLUDES MR. HOLZEN INFLUENCES PEOPLE FOR THE WRONG REASONS COLTEC INDUSTRIES INCORPORATED SAID FOURTH QUARTER EARNINGS FELL SEVENTY TWO PERCENT ON EXTROARDINARY CHARGES FROM EARLY RETIREMENT AND REFINANCING OF DEBT PROFIT FELL TO SIX POINT FIVE MILLION DOLLARS OR NINE CENTS A SHARE INCLUDING CHARGES OF SIXTEEN POINT EIGHT MILLION DOLLARS OR TWENTY FOUR CENTS A SHARE THAT COMPARES WITH NET INCOME OF TWENTY TWO POINT SIX MILLION DOLLARS OR THIRTY THREE CENTS A SHARE INCLUDING DEBT RELATED CHARGES OF ONE POINT SIX MILLION DOLLARS OR TWO CENTS A SHARE A YEAR EARLIER SALES ROSE TO THREE HUNDRED FORTY FOUR POINT TWO MILLION DOLLARS FROM THREE HUNDRED FORTY POINT FIVE MILLION DOLLARS COLTEC WHICH MAKES AEROSPACE AUTOMOTIVE AND OTHER INDUSTRIAL PRODUCTS SAID IT ARRANGED A FOUR HUNDRED FIFTEEN MILLION DOLLAR REVOLVING CREDIT FACILITY WITH A GROUP OF BANKS WHICH WILL REDUCE INTEREST COSTS AND HAS BEEN USED TO PREPAY BORROWINGS UNDER A NINETEEN NINETY TWO CREDIT AGREEMENT FOR THE YEAR NET TOTALED FORTY SEVEN POINT FOUR MILLION DOLLARS OR SIXTY EIGHT CENTS A SHARE INCLUDING EXTRAORDINARY CHARGES OF SEVENTEEN POINT EIGHT MILLION DOLLARS OR TWENTY SIX CENTS A SHARE FOR THE PREVIOUS YEAR THE COMPANY HAD A NET LOSS OF FORTY TWO MILLION DOLLARS OR SEVENTY TWO CENTS A SHARE INCLUDING EXTRAORDINARY CHARGES OF ONE HUNDRED SEVEN MILLION DOLLARS OR ONE DOLLAR AND EIGHTY THREE CENTS A SHARE SALES FELL TWO POINT FOUR PERCENT TO ONE POINT THREE THREE BILLION DOLLARS FROM ONE POINT THREE SEVEN BILLION DOLLARS WHEN THE TIDE TURNED AGAINST JAPAN IN WORLD WAR TWO VIRTUALLY NO ONE NOT THE POLITICAL LEADERS NOT THE PUBLIC AND CERTAINLY NOT THE GENERALS WAS ABLE TO COMPREHEND THAT THE COUNTRY WAS HEADED INEXORABLY FOR DEFEAT EVEN AT THE CENTRAL MILITARY HEADQUARTERS THE FACTS WEREN'T AVAILABLE THE GENERAL STAFF WOULD FOR EXAMPLE ASK THE OFFICER IN CHARGE OF OPERATIONS IN SIBERIA HOW THINGS WERE GOING THE INEVITABLE ANSWER FINE WITH A BIT MORE LOGISTICAL SUPPORT WE'LL BE IN PRETTY GOOD SHAPE THEN THE GENERAL STAFF WOULD TELL HIS COUNTERPART IN CHINA THAT SIBERIA WAS O. K. AND ASK ABOUT CHINA AGAIN FINE THEN IT WOULD TURN TO HIS COUNTERPARTS IN INDOCHINA THE PHILIPPINES INDONESIA MICRONESIA EVERYWHERE FINE NO ONE HOWEVER TOOK THE TIME TO ADD UP ALL THE RESOURCES THESE OPERATIONS NEEDED OR TO ASSESS THE OVERALL LOGISTICAL BURDEN OF PROVIDING THEM ACROSS SO BROAD A GEOGRAPHY VIEWED INCREMENTALLY EVERYTHING WAS STILL POSSIBLE VIEWED CUMULATIVELY THE SITUATION WAS NOTHING SHORT OF A DISASTER IN THE MAKING IN JAPAN TODAY AS THINGS HAVE STARTED TO GO BADLY ON THE ECONOMIC FRONT VIRTUALLY NO ONE HAS BEEN WILLING TO DO THIS KIND OF ADDITION THE MINISTRY OF FINANCE SAYS THAT WITH A BIT MORE SUPPORT EVERYTHING WILL BE FINE THE BANKING BUREAU SAYS THAT GIVEN LOWER INTEREST RATES IT CAN HANDLE ALL CURRENT DIFFICULTIES IN THE FINANCIAL SECTOR THE SECURITIES BUREAU SAYS THAT WITH A BIT MORE HELP FROM THE POSTAL SAVINGS AND PENSION FUNDS IT CAN KEEP THE NIKKEI AT A HEALTHY LEVEL EVEN BUSINESS LEADERS WHO ARE WILLING TO ADMIT THAT THE SITUATION IS TROUBLESOME CLAIM THAT IF ONLY THE GOVERNMENT WILL STIMULATE THE ECONOMY A BIT MORE EVERYTHING WILL BE FINE THIS IS IRRESPONSIBLE NONSENSE IT IS NOT MERELY FIDDLING WHILE JAPAN BURNS IT IS PILING UP ALL AVAILABLE VIOLINS TO MAKE THEIR USE AS TINDER MORE CONVENIENT AS CITIZENS AND CONSUMERS WE JAPANESE SHOULD KNOW THE RHETORIC BY NOW WE SHOULD BE ABLE TO RECOGNIZE WHEN GOVERNMENT IS PLANNING TO BAIL OUT INDUSTRY AT TAXPAYERS' EXPENSE WE SHOULD BE ABLE TO DO THE NECESSARY SUMS AND WE CERTAINLY SHOULD BE ABLE TO DEMAND THAT OUR LEADERS DO THEM TOO AND WILL ACT ON THE RESULTS IN TOKYO THE LONG TERM VALUE OF COMMERCIAL PROPERTY IS NOW AT LEAST SEVENTY PERCENT LESS THAN IT WAS IN NINETEEN EIGHTY NINE HOWEVER BECAUSE THERE HAVE BEEN SO VERY FEW TRANSACTIONS DURING THE PAST SEVERAL YEARS BY COMPANIES FEARFUL OF REALIZING PAPER LOSSES THE MARKET HAS ACTUALLY ADJUSTED BY ONLY TWENTY FIVE PERCENT WE DO NOT THEREFORE REALLY KNOW HOW LOW IT WILL ULTIMATELY PLUNGE ONLY THAT THERE IS STILL A HUGE DISTANCE TO GO QUOTE HUGE QUOTE IS THE CRITICAL TERM HERE AT ITS PEAK THE VALUE OF TOKYO'S PROPERTY MARKET WAS TWICE THAT OF ALL THE REAL ESTATE IN THE U. S. LOSING AT A MINIMUM SEVENTY PERCENT OF THAT VALUE IS NOT BY ANY STRETCH OF THE IMAGINATION AN EASILY MANAGED ECONOMIC EVENT MULTI TRILLION DOLLAR LOSSES ARE PRECISELY WHAT JAPAN'S FINANCIAL SYSTEM FACES ANY HONEST ECONOMIC SURGEON WILL CONFESS THAT NOT EVERY BANK CAN OR SHOULD BE SAVED DESPITE THE BUREAUCRATIC REFLEX TO DO SO SO LONG AS HOPELESSLY WEAK BANKS ARE KEPT AFLOAT BAD INVESTMENTS AREN'T WRITTEN OFF INSOLVENT INSTITUTIONS AREN'T ALLOWED TO GO UNDER AND STOCK PRICES ARE KEPT ARTIFICIALLY HIGH THE PATIENT CAN'T BE HELPED THE DRASTIC SURGERY NEEDED HERE IS THE KIND THAT WILL RESTORE TRANSPARENCY AND FREEDOM TO A MARKET THAT HAS LONG KNOWN ONLY THE INTRUSIVE HAND OF GOVERNMENT CONTROL UNLIKE IN NINETEEN FORTY FIVE THE JAPANESE PEOPLE TODAY KNOW THAT SUCCESS LET ALONE VICTORY ISN'T POSSIBLE AS THINGS NOW STAND THEY AREN'T PRISONERS OF DOCTORED GOVERNMENT INFORMATION THEY CAN READ AND SEE AND HEAR FOR THEMSELVES NOR DO THEY BELIEVE THAT PERFORMING THE NECESSARY FINANCIAL SURGERY WILL TRIGGER A PANIC THEY KNOW THAT THE GOVERNMENT HAS IMMENSE HIDDEN ASSETS NATIONAL LAND AND INTELLECTUAL PROPERTIES FOR EXAMPLE THAT CAN BE USED TO CUSHION THE INEVITABLE POST SURGERY ADJUSTMENTS THEY KNOW THAT IN THE AREA OF RESIDENTIAL PROPERTY FOR EXAMPLE IT IS ONLY ANTIQUATED TAX LAWS ON CAPITAL GAINS AND CUMBERSOME REGULATIONS ON SELLING UNPRODUCTIVE FARMLAND THAT KEEP MORE THAN ONE HUNDRED SIXTY THOUSAND ACRES OF LAND IN THE GREATER TOKYO AREA OFF THE MARKET FOR PRODUCTIVE RESIDENTIAL DEVELOPMENT THAT'S TWICE THE AMOUNT NOW DEVOTED TO PRIVATE HOUSING AND THEY KNOW THAT INDIVIDUALLY THEY HAVE EXTENSIVE SAVINGS TO SPEND IF ONLY THEY HAD SOMETHING TO BUY IF PRICES IN JAPAN FOR THE THINGS PEOPLE REALLY WANT TO BUY AND HOUSING IS AT THE TOP OF THE LIST FELL TO EVEN HALFWAY REASONABLE LEVELS THOSE PRIVATE SAVINGS ROUGHLY SIX TRILLION DOLLARS WOULD FLOW RAPIDLY INTO USE IRONICALLY THE MORE THE GOVERNMENT KEEPS STOCK AND PROPERTY PRICES HIGH THE LESS APPETITE THE PRIVATE SECTOR WILL HAVE FOR THEM HENCE THE NEED FOR MORE ARTIFICIAL STIMULATION BY CONTRAST WHERE PRICES ARE FALLING ON AUTOMOBILES AND CONSUMER ELECTRONIC GOODS FOR EXAMPLE THERE IS NO PENT UP BACKLOG OF DEMAND OUR LIVING ROOMS AND CLOSETS AND GARAGES ARE ALREADY FULL FEW OF US NEED A THIRD T. V. SET OR A SECOND FAX MACHINE WE HAVE MONEY TO SPEND BUT WE PUT IT IN THE BANK BECAUSE THERE IS NOTHING IN JAPAN THAT WE WANT TO BUY AT CURRENT PRICE LEVELS WE ALREADY HAVE THE MONEY BUT WE SAVE IT OR USE IT TO TRAVEL ABROAD IF WE WANT TO GO SKIING FOR FOUR DAYS IT IS CHEAPER FOR US TO GO TO CANADA THAN TO HOKKAIDO WE AMUSE OURSELVES BY PLAYING PACHINKO AT ONE HUNDRED SEVENTY BILLION DOLLARS A YEAR THE LARGEST INDUSTRY IN THE COUNTRY WE DON'T FEAR PANIC AND WE DON'T NEED FISCAL STIMULATION WHAT WE DO NEED ARE MARKETS THAT WORK AND A WILLINGNESS ON THE GOVERNMENT'S PART TO RECOGNIZE THAT IN JAPAN PROSPERITY NOW FLOWS IF IT FLOWS AT ALL FROM CONSUMER SOVEREIGNTY NOT FROM BUREAUCRATIC EFFORTS TO SPEND TAXPAYERS' MONEY IT IS A BASELESS HOPE TO POSTPONE THE NEED FOR DRASTIC MARKET SURGERY ON THE GROUND THAT THE MANUFACTURING PERFORMANCE THAT FUELED JAPAN'S SUCCESS DURING THE NINETEEN EIGHTIES WILL KICK IN AGAIN AS SOON AS THE CURRENT WORLD WIDE RECESSION EASES IT WILL NOT THINGS HAVE CHANGED FUNDAMENTALLY MOST IMPORTANT THE MANUFACTURING BASE IN THE U. S. HAS BEEN REVITALIZED OUR OWN TRANSPLANT OPERATIONS IN THE U. S. HAVE SHOWN US THAT WE CAN PRODUCE GOODS OF THE SAME QUALITY THERE AS AT HOME BUT AT A COST SAVINGS OF THIRTY PERCENT THIS COST DIFFERENCE ISN'T GOING TO DISAPPEAR TODAY THE AVERAGE FAMILY INCOME IN THE U. S. IS ROUGHLY FORTY THOUSAND DOLLARS A NUMBER THAT HASN'T INCREASED IN REAL TERMS FOR A DOZEN YEARS IN JAPAN THE COMPARABLE FIGURE IS SEVENTY TWO THOUSAND DOLLARS AT THE SAME TIME OF COURSE COUNTRIES LIKE CHINA ARE COMING ONTO THE SCENE WITH COMPETENT WORKERS WHO EARN PERHAPS ONE PERCENT OF WHAT THEIR JAPANESE COUNTERPARTS EARN WE SIMPLY CAN'T COMPETE WITH THIS LABOR COST DISADVANTAGE FROM A DOMESTIC PRODUCTION BASE NOR CAN WE MATCH THE FLEXIBLE LABOR PRACTICES OF THESE OTHER VENUES NOR DO OUR COMPANIES HAVE ANY RECENT EXPERIENCE IN DEALING WITH UNIONS THAT WILL CERTAINLY PROTEST THE KIND OF RESTRUCTURING THAT U. S. COMPANIES HAVE EXPERIENCED AS A RESULT NEARLY ALL NEW INVESTMENT IN JAPANESE MANUFACTURING IS GOING NOT TO JAPAN BUT TO NORTH AMERICA CHINA AND THE OTHER DEVELOPING ECONOMIES IN ASIA THESE COUNTRIES ARE POISED TO DEAL WITH THE WEALTH CREATING OPPORTUNITIES OF THE TWENTY FIRST CENTURY WE ARE STILL TRYING TO RECREATE THE MANUFACTURING OPPORTUNITIES OF THE NINETEEN EIGHTIES JAPAN'S RECOVERY WHEN IT COMES WILL BE DRIVEN BY A RESURGENT HOUSING MARKET COUPLED WITH ALL THE SECONDARY DEMAND THAT IT TRIGGERS IT WOULD BE NICE TO THINK THAT OUR LEADERS WILL MAKE AND HONOR SUCH NEW YEAR'S RESOLUTIONS AS THESE THE SIGNS HOWEVER AREN'T ENCOURAGING A WEAK GOVERNMENT COALITION WITH PRECIOUS LITTLE ROOM IN WHICH TO MANEUVER BEYOND OFFERING UP THE USUAL STIMULATION PACKAGES SCARED BUREAUCRATS WHO THINK ONLY OF STIMULATION BECAUSE ANYTHING ELSE WOULD BE AN ADMISSION THAT THE POLICY TOOLS THEY WIELD NO LONGER WORK AND INDUSTRY EXECUTIVES WHO CALL OUT FOR STIMULATION BECAUSE THE PROSPECT OF SERIOUS RESTRUCTURING IS SO UNPALATABLE SO GOOD RESOLUTIONS ASIDE MORE STIMULATION IS WHAT WE PROBABLY WILL GET AND LIKE THE THREE HUNDRED BILLION DOLLARS SPENT SINCE AUGUST NINETEEN NINETY TWO IT WILL FAIL ITS FAILURE WILL DO MUCH TO PRECIPITATE AN ECONOMIC CRASH FIRST IN JAPAN AND THEN WITH A DOMINO LIKE EFFECT IN THE OTHER INDUSTRIALIZED ECONOMIES UNLIKE IN NINETEEN FORTY FIVE THESE ECONOMIES ARE WELL AND TRULY INTEGRATED JAPAN REMEMBER FINANCED ONE THIRD OF THE U. S. DEFICIT DURING THE NINETEEN EIGHTIES WHEN JAPAN GOES THE CONSEQUENCES WILL NOT STOP IN JAPAN MR. OHMAE IS A DIRECTOR OF MCKINSEY AND COMPANY THE CLINTON ADMINISTRATION IS CONSIDERING A PLAN THAT WOULD AUTOMATICALLY DECLASSIFY GOVERNMENT SECRETS WITHIN FORTY YEARS THE PLAN BEING DEBATED IN THE NATIONAL SECURITY COUNCIL WOULD GREATLY REVAMP THE CLASSIFICATION SYSTEM IN PLACE SINCE THE REAGAN ADMINISTRATION IT WOULD REQUIRE GOVERNMENT OFFICIALS TO KEEP INFORMATION UNCLASSIFIED FOR INSTANCE IF THEY DETERMINE THAT THE PUBLIC INTEREST REQUIRES IT NO SUCH QUOTE BALANCING QUOTE TEST CURRENTLY IS REQUIRED THE FEDERATION OF AMERICAN SCIENTISTS A LIBERAL ADVOCACY GROUP THAT OBTAINED AND RELEASED COPIES OF THE PLAN SAID THE PROPOSAL DOESN'T GO FAR ENOUGH THE GROUP SAID GOVERNMENT SECRETS SHOULD BE DECLASSIFIED WITHIN TWENTY YEARS THE VERSION OF THE PLAN RELEASED BY THE FEDERATION IS DATED NOVEMBER TENTH CLINTON ADMINISTRATION OFFICIALS SAID THE PROPOSAL HAS BEEN CHANGED SINCE THEN THREE OHIO BANKS HAVE PURCHASED FOR TWELVE MILLION DOLLARS THE OHIO ASSETS OF CITIZENS FEDERAL BANK A UNIT OF C. S. F. HOLDINGS INCORPORATED OF MIAMI THE TRANSACTION INVOLVES THIRTEEN BANKING OFFICES WITH ABOUT FOUR HUNDRED SIXTY FOUR MILLION DOLLARS IN DEPOSITS OPERATING UNDER THE NAME OF EQUITABLE SAVINGS FIFTH THIRD BANCORP OF CINCINNATI PURCHASED EIGHT OFFICES WITH DEPOSITS OF THREE HUNDRED FIVE MILLION DOLLARS CHARTER ONE BANK F. S. OF CLEVELAND BOUGHT FOUR OFFICES WITH ONE HUNDRED TWELVE MILLION DOLLARS IN DEPOSITS AND FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION OF WOOSTER ACQUIRED ONE WITH FORTY SEVEN MILLION DOLLARS IN DEPOSITS CITIZENS FEDERAL WITH ABOUT FOUR POINT FOUR BILLION DOLLARS IN ASSETS IN FLORIDA CALIFORNIA OHIO AND VIRGINIA ENTERED OHIO IN NINETEEN EIGHTY SIX WHEN IT ACQUIRED EQUITABLE SAVINGS IT EXPECTS TO RECORD A PROFIT OF ABOUT EIGHT MILLION DOLLARS FROM THE SALE K. THE THIRD COMMUNICATIONS CORPORATION NAMED KURT ANDERSEN TIME MAGAZINE EDITOR AT LARGE TO BE EDITOR OF THE COMPANY'S NEW YORK MAGAZINE MR. ANDERSEN THIRTY NINE YEARS OLD REPLACES EDWARD KOSNER WHO LEFT IN SEPTEMBER TO BECOME EDITOR IN CHIEF OF HEARST CORPORATION'S ESQUIRE MR. ANDERSEN WHO WRITES A COLUMN FOR TIME ON MEDIA AND CULTURE AND WHO ENGINEERED THE RECENT REDESIGN OF THE WEEKLY NEWSMAGAZINE'S CHRONICLE SECTION WAS A CO FOUNDER OF SPY MAGAZINE WHICH HE EDITED FROM NINETEEN EIGHTY SIX TO NINETEEN NINETY TWO K. THE THIRD'S TOP MAGAZINE EXECUTIVE HARRY MCQUILLEN DESCRIBED THE TWENTY FIVE YEAR OLD MAGAZINE AS QUOTE IN GOOD SHAPE QUOTE ADDING THAT QUOTE KURT AGREES THAT WE NEED EVOLUTIONARY CHANGE RATHER THAN RADICAL REDESIGN QUOTE THE FINALISTS IN K. THE THIRD'S SEARCH FOR AN EDITOR INCLUDED MICHAEL KINSLEY CO HOST OF C. N. N.'S CROSSFIRE AND FORMER EDITOR OF THE NEW REPUBLIC MAGAZINE AND PETER HERBST A VETERAN NEW YORK MAGAZINE STAFFER WHO HAS BEEN ACTING EDITOR K. THE THIRD COMMUNICATIONS IS A PUBLISHING CONCERN FUNDED AND PARTLY OWNED BY KOHLBERG KRAVIS ROBERTS AND COMPANY THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BANK OF DELAWARE ONE HUNDRED MILLION DOLLARS OF BANK NOTES DUE JANUARY TWENTIETH NINETEEN NINETY FIVE PRICED INITIALLY AT PAR TO YIELD THREE POINT FIVE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF TEN BASIS POINTS ABOVE ONE YEAR TREASURY BILLS RATED DOUBLE A THREE BY MOODY'S INVESTORS SERVICE INCORPORATED AND SINGLE A PLUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY BANK OF DELAWARE IS A UNIT OF P. N. C. BANK CORPORATION CAROLINA POWER AND LIGHT COMPANY ONE HUNDRED FIFTY MILLION DOLLARS OF FIRST MORTGAGE BONDS DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS FIVE POINT EIGHT SEVEN FIVES AT NINETY NINE POINT OH SIX NINE TO YIELD SIX PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FORTY FOUR BASIS POINTS ABOVE TREASURYS RATED SINGLE A TWO BY MOODY'S AND SINGLE A ONE BY S. AND P. THE ISSUE WAS SOLD THROUGH A COMPETITIVE BID WON BY PRUDENTIAL SECURITIES INCORPORATED FEDERAL HOME LOAN BANK SYSTEM THREE HUNDRED MILLION DOLLARS OF NOTES DUE JANUARY TWENTY FIRST TWO THOUSAND FOUR PRICED AT PAR TO YIELD SIX POINT ONE SIX PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF FIFTY NINE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION TWO HUNDRED FIFTY MILLION DOLLARS OF MEDIUM TERM NOTES DUE JANUARY TWENTY SECOND NINETEEN NINETY NINE PRICED AT PAR TO YIELD FIVE POINT ONE TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF EIGHTEEN BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION TWO HUNDRED MILLION DOLLARS OF MEDIUM TERM NOTES DUE JANUARY TWENTY FIRST TWO THOUSAND FOUR PRICED AT PAR TO YIELD SIX POINT ONE FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF FIFTY SIX BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED KANSAS GAS AND ELECTRIC COMPANY ONE HUNDRED MILLION DOLLARS OF FIRST MORTGAGE BONDS DUE JANUARY FIFTEENTH TWO THOUSAND SIX PRICED AS SIX POINT TWOS AT NINETY NINE POINT NINE TO YIELD SIX POINT TWO ONE TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SIXTY FIVE BASIS POINTS ABOVE TREASURYS RATED SINGLE A THREE BY MOODY'S AND SINGLE A MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DILLON READ AND COMPANY P. N. C. BANK FOUR HUNDRED MILLION DOLLARS OF BANK NOTES DUE JANUARY TWENTIETH NINETEEN NINETY FIVE PRICED INITIALLY AT PAR TO YIELD THREE POINT FIVE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF TEN BASIS POINTS ABOVE ONE YEAR TREASURY BILLS RATED DOUBLE A THREE BY MOODY'S AND SINGLE A PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY P. N. C. BANK N. A. IS A UNIT OF P. N. C. BANK CORPORATION ROGERS CABLESYSTEMS LIMITED THREE HUNDRED MILLION CANADIAN DOLLARS TWO HUNDRED TWENTY SIX POINT NINE MILLION U. S. DOLLARS OF SENIOR SECONDARY PRIORITY NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOURTEEN PRICED AT PAR TO YIELD NINE POINT SIX FIVE PERCENT THE ISSUE NONCALLABLE FOR TEN YEARS WAS PRICED AT A SPREAD OF TWO HUNDRED FORTY NINE BASIS POINTS ABOVE CANADIAN TREASURYS RATED B. A. ONE BY MOODY'S AND DOUBLE B. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY ROGERS CABLESYSTEMS IS A UNIT OF ROGERS COMMUNICATIONS SMITH BARNEY SHEARSON HOLDINGS INCORPORATED TWO HUNDRED MILLION DOLLARS OF NOTES DUE JANUARY FIFTEENTH NINETEEN NINETY NINE PRICED AS FIVE POINT FIVES AT NINETY NINE POINT EIGHT ONE EIGHT TO YIELD FIVE POINT FIVE FOUR TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF SIXTY BASIS POINTS ABOVE TREASURYS RATED SINGLE A THREE BY MOODY'S AND SINGLE A MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INCORPORATED SMITH BARNEY SHEARSON HOLDINGS IS A UNIT OF TRAVELERS INCORPORATED UNION ELECTRIC COMPANY ONE HUNDRED MILLION DOLLARS OF FIRST MORTGAGE BONDS DUE JANUARY FIFTEENTH TWO THOUSAND TWENTY FOUR PRICED AS SEVENS AT NINETY NINE POINT EIGHT ONE TO YIELD SEVEN POINT OH ONE FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE BONDS NONCALLABLE FOR TEN YEARS WERE PRICED AT A SPREAD OF SEVENTY BASIS POINTS ABOVE TREASURYS RATED SINGLE A ONE BY MOODY'S AND DOUBLE A MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED AMERICAN SENSORS INCORPORATED INITIAL PUBLIC OFFERING OF EIGHT HUNDRED SIXTY TWO THOUSAND FIVE HUNDRED UNITS AT SIX DOLLARS EACH EACH UNIT CONSISTS OF ONE COMMON SHARE AND ONE WARRANT EXERCISABLE AT EIGHT DOLLARS UNTIL DECEMBER THIRTY FIRST NINETEEN NINETY EIGHT THE OFFERING WAS UNDERWRITTEN BY TRINITY CAPITAL SECURITIES LIMITED AND THOMSON KERNAGHAN AND COMPANY SCICLONE PHARMACEUTICALS INCORPORATED TWO MILLION COMMON SHARES PRICED AT TWENTY THREE DOLLARS AND TWENTY FIVE CENTS EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES WONDERWARE CORPORATION TWO MILLION COMMON SHARES PRICED AT TWENTY DOLLARS AND FIFTY CENTS EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES ORLANDO UTILITIES COMMISSION FLORIDA ONE HUNDRED THIRTY SEVEN POINT FIVE MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR A WATER AND ELECTRIC SUBORDINATED REVENUE REFUNDING BONDS PRICED BY A GOLDMAN SACHS AND COMPANY GROUP YIELDS RANGE FROM THREE POINT TWO FIVE PERCENT IN NINETEEN NINETY SIX TO FIVE POINT THREE TWO PERCENT IN TWO THOUSAND TWENTY MOODY'S RATED THE BONDS DOUBLE A ONE AND S. AND P. ASSIGNED A DOUBLE A MINUS RATING FEDERAL HOME LOAN MORTGAGE CORPORATION FIVE HUNDRED TWENTY MILLION DOLLARS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS AND COMPANY THE OFFERING SERIES ONE THOUSAND SIX HUNDRED SEVENTY THREE IS BACKED BY THE AGENCY'S THIRTY YEAR SIX PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SIX POINT SIX TWO FIVE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY EIGHT MONTHS FEDERAL HOME LOAN MORTGAGE CORPORATION THREE HUNDRED FIFTY MILLION DOLLARS OF REMIC SECURITIES OFFERED BY BEAR STEARNS AND COMPANY THE OFFERING SERIES ONE THOUSAND SIX HUNDRED SEVENTY FOUR IS BACKED BY THE AGENCY'S THIRTY YEAR SEVEN PERCENT MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF SEVEN POINT SIX FIVE PERCENT AND WEIGHTED AVERAGE MATURITY OF THREE HUNDRED FIFTY SIX MONTHS BARCLAYS BANK P. L. C. U. K. FIVE HUNDRED MILLION OF SIX POINT FIVE PERCENT EUROBONDS DUE FEBRUARY SIXTEENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT SEVEN FOUR TWO VIA BARCLAYS DE ZOETE WEDD SECURITIES LIMITED AND SALOMON BROTHERS INTERNATIONAL LIMITED REOFFERED AT NINETY NINE POINT OH NINE TWO TO YIELD SIX POINT SIX THREE PERCENT A MARGIN OF THIRTY BASIS POINTS OVER COMPARABLE U. K. GILT FEES TWO BAYERISCHE LANDESBANK GIROZENTRALE GERMANY ONE BILLION MARKS OF SIX PERCENT EUROBONDS DUE FEBRUARY SIXTEENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED TWO POINT FOUR FOR OWN ACCOUNT REOFFERED AT PAR TO YIELD SIX PERCENT A MARGIN OF FORTY TWO BASIS POINTS ABOVE COMPARABLE GERMAN BUND FEES TWO POINT FIVE CAISSE FRANCAISE DE DEVELOPPEMENT FRANCE TWO HUNDRED MILLION E. C. U. OF FIVE POINT FIVE PERCENT EUROBONDS DUE FEBRUARY NINTH TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED ONE POINT FOUR OH FIVE VIA BARCLAYS DE ZOETE WEDD SECURITIES LIMITED AND GOLDMAN SACHS INTERNATIONAL LIMITED REOFFERED AT NINETY NINE POINT EIGHT THREE TO YIELD FIVE POINT FIVE THREE PERCENT FEES ONE POINT EIGHT SEVEN FIVE CAISSE NATIONALE DES AUTOROUTES FRENCH AGENCY TWO POINT FIVE BILLION FRENCH FRANCS OF FIVE POINT FIVE PERCENT EUROBONDS DUE FEBRUARY FOURTEENTH TWO THOUSAND TWO AT ISSUE AND REOFFER PRICE NINETY NINE POINT OH FIVE VIA SOCIETE GENERALE AND J. P. MORGAN AND COMPANY BONDS YIELD FIVE POINT SIX FIVE PERCENT A MARGIN OF NINETEEN BASIS POINTS OVER INTERPOLATED FRENCH TREASURY YIELD CURVE FEES ZERO POINT THREE CHELTENHAM AND GLOUCESTER BUILDING SOCIETY U. K. ONE HUNDRED FIFTY MILLION POUNDS OF FLOATING RATE EURONOTES AT ISSUE AND REOFFER PRICE PAR VIA KLEINWORT BENSON SECURITIES LIMITED PAYABLE QUARTERLY AT TEN BASIS POINTS OVER THREE MONTH POUND LONDON INTERBANK OFFERED RATE CALLABLE QUARTERLY AT PAR FROM JANUARY NINETEEN NINETY EIGHT FEES ZERO POINT ONE CREDIT FONCIER DE FRANCE FRENCH AGENCY THREE HUNDRED MILLION E. C. U. OF FIVE POINT FIVE PERCENT EUROBONDS DUE FEBRUARY EIGHTH TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED ONE POINT ONE SEVEN FIVE VIA PARIBAS CAPITAL MARKETS LIMITED REOFFERED AT NINETY NINE POINT SIX TO YIELD FIVE POINT FIVE SEVEN PERCENT FEES ONE POINT EIGHT SEVEN FIVE DAIWA OVERSEAS FINANCE LIMITED HONG KONG JAPANESE PARENT FIFTY MILLION DOLLARS OF EURONOTES DUE JANUARY TWENTY SEVENTH TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE ONE HUNDRED POINT TWO VIA DAIWA BANK CAPITAL MANAGEMENT LIMITED PAYABLE SEMIANNUALLY AT FORTY FIVE BASIS POINTS OVER SIX MONTH DOLLAR LIBOR UNTIL JANUARY TWENTY SEVENTH NINETEEN NINETY SEVEN THEREAFTER COUPON EIGHT PERCENT ANNUALLY NOTES CALLABLE AT PAR ON JANUARY TWENTY SEVENTH NINETEEN NINETY SEVEN GUARANTOR DAIWA BANK LIMITED FEES ZERO POINT TWO FIVE DE NATIONALE INVESTERINGSBANK N. V. DUTCH AGENCY ONE HUNDRED FIFTY MILLION POUNDS OF SIX POINT ONE TWO FIVE PERCENT EUROBONDS DUE DECEMBER TWENTY SECOND NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT EIGHT EIGHT VIA SAMUEL MONTAGU AND COMPANY BONDS YIELD SIX POINT ONE FOUR PERCENT A MARGIN OF THIRTY BASIS POINTS ABOVE COMPARABLE U. K. GILT FEES ZERO POINT THREE EUROPEAN INVESTMENT BANK SUPRANATIONAL TWENTY BILLION SPANISH PESETAS OF SEVEN POINT NINE PERCENT MATADOR BONDS DUE FEBRUARY SECOND TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED ONE POINT SIX VIA BANCO SANTANDER DE NEGOCIOS BONDS YIELD SEVEN POINT NINE TWO PERCENT AT NINETY NINE POINT EIGHT FIVE CO MANAGERS' BREAK EVEN PRICE A MARGIN OF NINE BASIS POINTS BELOW AVERAGE YIELD ON EIGHT PERCENT SPANISH GOVERNMENT BOND OF TWO THOUSAND FOUR AND TEN POINT FIVE PERCENT BONOS OF TWO THOUSAND THREE FEES ONE POINT EIGHT SEVEN FIVE LESS ZERO POINT ONE TWO FIVE FOR LEAD MANAGER EXPORT DEVELOPMENT CORPORATION CANADIAN AGENCY TWO HUNDRED BILLION ITALIAN LIRE OF SEVEN POINT SIX PERCENT EUROBONDS DUE FEBRUARY FOURTEENTH TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED ONE POINT EIGHT SEVEN FIVE VIA PARIBAS CAPITAL MARKETS LIMITED BONDS YIELD SEVEN POINT SIX PERCENT AFTER FEES OF ONE POINT EIGHT SEVEN FIVE FINLAND SOVEREIGN TWO BILLION MARKS OF FIVE POINT FIVE PERCENT EUROBONDS DUE FEBRUARY NINTH TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED POINT NINE FIVE VIA DRESDNER BANK A. G. REOFFERED AT NINETY NINE TO YIELD FIVE POINT SIX EIGHT PERCENT A MARGIN OF TWENTY TWO BASIS POINTS OVER COMPARABLE GERMAN BUND FEES TWO POINT TWO FIVE KFW INTERNATIONAL FINANCE INCORPORATED GERMAN PARENT TWO HUNDRED MILLION E. C. U. OF FIVE POINT FIVE PERCENT EUROBONDS DUE JANUARY THIRTY FIRST TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED ONE POINT FIVE TWO FIVE VIA GOLDMAN SACHS INTERNATIONAL REOFFERED AT NINETY NINE POINT NINE TWO FIVE TO YIELD FIVE POINT FIVE ONE PERCENT GUARANTOR KREDITANSTALT FUER WIEDERAUFBAU FEES ONE POINT EIGHT SEVEN FIVE LANDESBANK HESSEN THURINGEN GIROZENTRALE GERMANY ONE HUNDRED MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY TENTH NINETEEN NINETY SEVEN AT ISSUE AND REOFFER PRICE PAR VIA MERRILL LYNCH INTERNATIONAL PAYABLE QUARTERLY AT THREE MONTH DOLLAR LIBOR PLUS ONE MINIMUM COUPON THREE PERCENT MAXIMUM COUPON FOUR PERCENT FIRST SIX MONTHS RISING EVERY SIX MONTHS TO SEVEN PERCENT IN FINAL SIX MONTHS FEES ZERO POINT TWO LANDESBANK RHEINLAND PFALZ GIRONZENTRALE GERMANY ONE HUNDRED TWENTY MILLION SWISS FRANCS OF TWO POINT TWO FIVE PERCENT PUBLIC BONDS DUE FEBRUARY FIFTEENTH TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED ONE WITH EQUITY WARRANTS TO PURCHASE BASKET OF GERMAN BANK STOCK VIA SWISS BANK CORPORATION WARRANTS EXERCISABLE FROM FEBRUARY TWENTY SECOND TO APRIL FIFTEENTH NINETEEN NINETY SIX FINAL TERMS FIXED AT EXPECTED PREMIUM ZERO POINT NINE TWO PERCENT ABOVE CLOSING SHARE PRICE JANUARY THIRTEENTH AND JANUARY FOURTEENTH FEES TWO POINT FIVE MONTREAL MUNICIPALITY ONE HUNDRED TWENTY FIVE MILLION CANADIAN DOLLARS OF SIX POINT THREE SEVEN FIVE PERCENT EUROBONDS DUE FEBRUARY FIFTEENTH TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED POINT EIGHT FIVE VIA WOOD GUNDY INCORPORATED REOFFERED AT NINETY NINE POINT THREE TO YIELD SIX POINT FIVE PERCENT A MARGIN OF FORTY EIGHT BASIS POINTS ABOVE INTERPOLATED FIVE YEAR TO TEN YEAR CANADIAN GOVERNMENT BOND CURVE FEES ONE POINT EIGHT SEVEN FIVE NACIONAL FINANCIERA S. N. C. GRAND CAYMAN BRANCH MEXICAN PARENT ONE HUNDRED FIFTY MILLION DOLLARS OF FLOATING RATE EURONOTES DUE FEBRUARY NINETEEN NINETY SIX AT ISSUE AND REOFFER PRICE NINETY NINE POINT EIGHT TWO FIVE VIA KIDDER PEABODY SECURITIES COMPANY PAYABLE SEMIANNUALLY AT ZERO POINT EIGHT SEVEN FIVE POINT ABOVE SIX MONTH DOLLAR LIBOR GUARANTOR UNITED MEXICAN STATES FEES ZERO POINT TWO FIVE NATIONWIDE BUILDING SOCIETY U. K. ONE HUNDRED FIFTY MILLION POUNDS OF SIX POINT ONE TWO FIVE PERCENT EUROBONDS DUE NOVEMBER FIFTEENTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED POINT SEVEN FIVE VIA BARING BROTHERS AND COMPANY REOFFERED AT NINETY NINE POINT TWO TO YIELD SIX POINT TWO NINE PERCENT A SPREAD OF FORTY FIVE BASIS POINTS ABOVE COMPARABLE GILT FEES ONE POINT EIGHT SEVEN FIVE NOMURA INTERNATIONAL P. L. C. JAPANESE PARENT ONE HUNDRED MILLION DOLLARS OF SUBORDINATED FLOATING RATE EURONOTES DUE FEBRUARY TENTH TWO THOUSAND FOUR AT ISSUE AND REOFFER PRICE NINETY NINE POINT SIX FOR OWN ACCOUNT PAYABLE SEMIANNUALLY AT SIX MONTH DOLLAR LIBOR PLUS ZERO POINT ONE TWO FIVE MINIMUM COUPON FIVE PERCENT FEES ZERO POINT TWO FIVE QUEENSLAND TREASURY CORPORATION AUSTRALIAN AGENCY TWENTY BILLION YEN OF FLOATING RATE EURONOTES DUE JANUARY TWENTY SEVENTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED SEVEN POINT OH FIVE VIA NIKKO EUROPE P. L. C. PAYABLE QUARTERLY AT THREE MONTH YEN LIBOR PLUS ONE LAUNCHED OFF BORROWER'S EUROMEDIUM TERM NOTE PROGRAM GUARANTOR QUEENSLAND FEES UNDISCLOSED REEMTSA FINANCE B. V. GERMAN PARENT TWO HUNDRED FIFTY MILLION MARKS OF SIX POINT ONE TWO FIVE PERCENT EUROBONDS DUE FEBRUARY SIXTEENTH TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED ONE POINT EIGHT VIA DEUTSCHE BANK A. G. REOFFERED AT NINETY NINE POINT FIVE FIVE TO YIELD SIX POINT TWO ONE PERCENT GUARANTOR REEMTSA CIGARETTENFABRIKEN GMBH FEES TWO POINT SEVEN FIVE LESS ZERO POINT TWO FOR LEAD MANAGER SANWA SHUTTER CORPORATION JAPAN FOUR HUNDRED SIXTY MILLION DOLLARS OF ONE POINT FIVE PERCENT BONDS WITH EQUITY WARRANTS DUE FEBRUARY THIRD NINETEEN NINETY EIGHT AT ISSUE PRICE PAR ISSUE SPLIT INTO THREE HUNDRED MILLION DOLLARS EUROTRANCHE VIA DAIWA EUROPE LIMITED AND ONE HUNDRED SIXTY MILLION DOLLARS ASIAN TRANCHE VIA NOMURA SINGAPORE LIMITED WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM FEBRUARY SEVENTEENTH TO JANUARY TWENTIETH NINETEEN NINETY EIGHT AT TERMS FIXED JANUARY EIGHTEENTH YESTERDAY'S CLOSING SHARE PRICE NINE HUNDRED NINE YEN FEES TWO POINT TWO FIVE LESS ZERO POINT ONE FIVE FOR LEAD MANAGER TAKARA STANDARD COMPANY JAPAN ONE HUNDRED FIFTY MILLION MARKS OF ONE POINT TWO FIVE PERCENT EUROBONDS WITH EQUITY WARRANTS DUE FEBRUARY THIRD NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA YAMAICHI BANK GERMANY GMBH WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FEBRUARY SEVENTEENTH TO JANUARY TWENTY SEVENTH NINETEEN NINETY EIGHT FEES TWO POINT TWO FIVE U. K. PASS THROUGH SECURITIES LIMITED SPECIAL PURPOSE VEHICLE TWO HUNDRED FIFTY MILLION E. C. U. OF FIVE POINT FIVE PERCENT SECURED EUROBONDS DUE FEBRUARY TWENTY FIRST TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED ONE POINT ONE SEVEN FIVE VIA MORGAN STANLEY INTERNATIONAL LIMITED REOFFERED AT NINETY NINE POINT SIX TO YIELD FIVE POINT FIVE SEVEN PERCENT BONDS SECURED ON TWO HUNDRED FIFTY MILLION E. C. U. OF NINE POINT ONE TWO FIVE PERCENT U. K. GOVERNMENT BONDS DUE FEBRUARY TWENTY FIRST TWO THOUSAND ONE FEES ONE POINT EIGHT SEVEN FIVE MARSHALL INDUSTRIES EL MONTE CALIFORNIA DECLARED A TWO FOR ONE SPLIT ON ITS COMMON STOCK PAYABLE FEBRUARY TWENTY EIGHTH TO STOCKHOLDERS OF RECORD FEBRUARY FOURTEENTH IN ADDITION THE DISTRIBUTOR OF ELECTRONIC COMPONENTS AND TEST INSTRUMENTS SAID THE NUMBER OF AUTHORIZED SHARES WILL BE INCREASED TO FORTY MILLION FROM TWENTY MILLION MARSHALL CURRENTLY HAS ABOUT EIGHT POINT FIVE MILLION SHARES OUTSTANDING TIMES MIRROR COMPANY CALIFORNIA'S LEADING NEWSPAPER PUBLISHER AND THE STATE'S LARGEST TELEPHONE COMPANY PACIFIC TELESIS GROUP UNVEILED A JOINT VENTURE FOR AN INFORMATION SERVICE THAT THEY PLAN TO BUILD INTO A QUOTE HOME SHOPPING LANE QUOTE OF THE NASCENT COMMUNICATIONS SUPERHIGHWAY THIS PARTNERSHIP WILL CREATE A POWERFUL NEW ELECTRONIC MARKETPLACE AN INTEGRATED SOURCE FROM WHICH CONSUMERS CAN QUICKLY AND EASILY GET INFORMATION ABOUT PRODUCTS AND SERVICES SAID RICHARD T. SCHLOSBURG THE THIRD PUBLISHER AND CHIEF EXECUTIVE OF THE LOS ANGELES TIMES TIMES MIRROR'S FLAGSHIP NEWSPAPER INITIALLY CONSUMERS IN THE LOS ANGELES AREA SEEKING INFORMATION ABOUT SUCH MUNDANE NEEDS AS USED CARS BANQUET FACILITIES OR HOTEL RATES WOULD BE ABLE TO OBTAIN LISTINGS BY PHONING THE SERVICE THE COMPANIES SAID THE SERVICE ALSO WILL BE ACCESSIBLE THROUGH HOME COMPUTERS AND OVER TIME WILL ADD INTERACTIVE TELEVISION AND OTHER EMERGING TECHNOLOGIES BUT BEYOND THE RATHER LOW TECH SHOPPING SERVICE THAT IS EXPECTED TO START IN NOVEMBER THE VENTURE WILL EXPLORE WAYS TO PROFITABLY EXPLOIT THE COMING SUPERHIGHWAY THE COMPANIES SAID SOME PRODUCT EXPERIMENTATION WILL BE SUCCESSFUL AND SOME WON'T WE HAVE A COMMITMENT TO REACT TO WHAT THE MARKETPLACE TELLS US SAID LEE CAMP VICE PRESIDENT OF SAN FRANCISCO BASED PACIFIC TELESIS'S PACIFIC BELL UNIT AND PRESIDENT OF A NEWLY CREATED SUBSIDIARY PACIFIC TELESIS ELECTRONIC PUBLISHING SERVICES FINANCING EMPLOYMENT PRICING AND OTHER SPECIFICS OF THE VENTURE WEREN'T DISCLOSED CONSUMERS AND ADVERTISERS WILL BOTH PAY SOMETHING TO USE THE SERVICE WHICH WILL HAVE ITS OWN FACILITIES AND STAFF EMPLOYEES WILL INCLUDE SHOPPING ASSISTANTS WHO WILL AT LEAST AT FIRST MANIPULATE THE ELECTRONIC DATABASE TO FIND ANSWERS TO CALLERS' QUESTIONS ANALYSTS SAID THE VENTURE WAS IN LINE WITH EXPERIMENTS UNDER WAY AT OTHER NEWSPAPERS HUNGRY TO GRAB A PIECE OF THE EMERGING MARKET FOR INTERACTIVE SHOPPING AND INFORMATION RETRIEVAL IN OCTOBER BELLSOUTH CORPORATION AND COX NEWSPAPERS INCORPORATED SAID THEY WOULD DEVELOP A FAMILY OF ELECTRONIC INFORMATION SERVICES BASED ON NEWSPAPER CLASSIFIED AND YELLOW PAGES ADVERTISING QUOTE ONE OF THE BIG QUESTIONS IS WE DON'T KNOW FOR SURE HOW MUCH OF A MARKET FOR ANY OF THIS THERE IS YET UNQUESTIONABLY THERE WILL BE SOME DAY BUT SO FAR THERE HASN'T BEEN ANY OVERWHELMING CONSUMER INTEREST SAID JOHN MORTON A WASHINGTON BASED ANALYST WITH THE INVESTMENT FIRM OF LYNCH JONES AND RYAN SEVERAL NEWSPAPER COMPANIES INCLUDING TIMES MIRROR EXPERIMENTED WITH ELECTRONIC VIDEOTEXT SERVICES IN THE MID NINETEEN EIGHTIES THE SERVICES DIDN'T ATTRACT ENOUGH INTEREST AMONG CONSUMERS AND WERE QUIETLY SHUT DOWN A FEW YEARS LATER BUT ELECTRONIC SHOPPING MAY HAVE A BETTER SHOT AT SUCCESS MR. MORTON SAID BECAUSE WE ARE CLEARLY CLOSER TO A TIME WHEN HOMES WILL BE CONNECTED INTERACTIVELY TO SOME KIND OF ELECTRONIC SYSTEMS BROWNING FERRIS INDUSTRIES INCORPORATED A SHELF OFFERING FOR UP TO SEVEN HUNDRED MILLION DOLLARS OF DEBT SECURITIES PREFERRED SHARES COMMON SHARES AND WARRANTS BEAR STEARNS SECURED INVESTORS INCORPORATED A UNIT OF BEAR STEARNS COMPANIES A SHELF OFFERING FOR TWO BILLION DOLLARS OF COLLATERALIZED MORTGAGE OBLIGATIONS VIA BEAR STEARNS AND COMPANY CASE RECEIVABLES INCORPORATED A UNIT OF TENNECO INCORPORATED'S CASE CORPORATION UNIT A SHELF OFFERING OF UP TO ONE BILLION DOLLARS OF ASSET BACKED NOTES AND ASSET BACKED CERTIFICATES ENRON CORPORATION'S EOTT ENERGY PARTNERS L. P. AN OFFERING OF TEN MILLION COMMON UNITS REPRESENTING ENRON'S INTEREST IN THE PARTNERSHIP OF ABOUT FIFTY EIGHT PERCENT WITH AN OVER ALLOTMENT OPTION OF ELEVEN MILLION COMMON UNITS KOHL'S CORPORATION AN OFFERING OF FOUR MILLION TWO HUNDRED FIFTY THOUSAND COMMON SHARES WITH AN OVER ALLOTMENT OPTION OF ADDITIONAL SIX HUNDRED THIRTY SEVEN THOUSAND FIVE HUNDRED SHARES VIA MORGAN STANLEY AND COMPANY WILLIAM BLAIR AND COMPANY MONTGOMERY SECURITIES SMITH BARNEY SHEARSON INCORPORATED AND ROBERT W. BAIRD AND COMPANY PARCPLACE SYSTEMS INCORPORATED AN INITIAL OFFERING OF TWO MILLION THIRTY THOUSAND SHARES VIA ROBERTSON STEPHENS AND COMPANY WESTERN NATIONAL CORPORATION A UNIT OF CONSECO INCORPORATED AN OFFERING OF UP TO ONE HUNDRED FIFTY MILLION DOLLARS OF SENIOR NOTES VIA MERRILL LYNCH AND COMPANY DEAN WITTER REYNOLDS INCORPORATED GOLDMAN SACHS AND COMPANY PHILLIPS PETROLEUM COMPANY SAID IT PLANS TO LEAVE THE CATALYST BUSINESS WITH THE SALE OF FACILITIES OWNED BY UNITS IN OHIO AND TEXAS PHILLIPS BARTLESVILLE OKLAHOMA RECENTLY COMPLETED THE SALE OF THE OPERATING ASSETS OF ITS AZTEC CATALYST COMPANY UNIT TO LAPORTE INCORPORATED THE U. S. UNIT OF BRITAIN'S LAPORTE P. L. C. AZTEC ELYRIA OHIO PRODUCES CATALYSTS USED IN THE PLASTICS INDUSTRY PHILLIPS ALSO SIGNED AN AGREEMENT TO SELL ITS CATALYST RESOURCES INCORPORATED UNIT IN HOUSTON TO MALLINCKRODT SPECIALTY CHEMICALS COMPANY OF SAINT LOUIS A UNIT OF IMCERA GROUP INCORPORATED TERMS OF THE TWO SALES WEREN'T DISCLOSED PHILLIPS HAS BEEN TRYING TO IMPROVE FINANCIAL PERFORMANCE BY BOOSTING CASH FLOW REDUCING EXPENSES AND SELLING MORE THAN SIX HUNDRED MILLION DOLLARS OF ASSETS SINCE NINETEEN NINETY ONE FREEPORT MCMORAN COPPER AND GOLD INCORPORATED SAID ITS NET INCOME FOR THE FOURTH QUARTER WAS FIFTEEN CENTS A SHARE THAT INCLUDES A LOSS OF NINE MILLION DOLLARS AT ITS RIO TINTO MINERA UNIT A NEWLY ACQUIRED SUBSIDIARY WHOSE PRINCIPAL ASSET IS A COPPER SMELTER IN SPAIN A YEAR EARLIER THE NEW ORLEANS AFFILIATE OF FREEPORT MCMORAN INCORPORATED REPORTED NET INCOME OF THIRTY SIX POINT FOUR MILLION DOLLARS OR SEVENTEEN CENTS A SHARE ON REVENUE OF TWO HUNDRED EIGHT POINT SEVEN MILLION DOLLARS FREEPORT MCMORAN COPPER AND GOLD ALSO SAID THAT ITS PROVED AND PROVABLE RESERVES AT YEAR END NINETEEN NINETY THREE INCREASED SIGNIFICANTLY OVER A YEAR EARLIER THE COMPANY SAID COPPER RESERVES INCREASED TWENTY EIGHT PERCENT TO TWENTY SIX POINT EIGHT BILLION PAYABLE POUNDS GOLD ROSE TWENTY TWO PERCENT TO TWENTY NINE POINT ONE MILLION PAYABLE OUNCES AND SILVER WAS UP SEVENTY TWO PERCENT TO SEVENTY SIX POINT SEVEN MILLION PAYABLE OUNCES THESE NEW RESERVES WERE ADDED PRIMARILY AT THE GRASBERG DEPOSIT IN IRIAN JAYA INDONESIA THE STATE OF WISCONSIN INVESTMENT BOARD SAID IT WILL OPPOSE AN EXECUTIVE COMPENSATION PLAN AND A PROPOSAL TO CREATE TWO NEW CLASSES OF STOCK AT S. H. L. SYSTEMHOUSE INCORPORATED OF OTTAWA THE MADISON WISCONSIN PENSION FUND WHICH OWNS ABOUT NINE POINT ONE PERCENT OF THE COMPUTER SERVICE COMPANY'S FIFTY TWO POINT EIGHT MILLION SHARES SAID THE TWO PROPOSALS TOGETHER COULD POTENTIALLY DILUTE THE HOLDINGS OF S. H. L. STOCKHOLDERS BY ABOUT THIRTY SEVEN POINT FIVE PERCENT OVER THE NEXT THREE YEARS QUOTE I'VE NEVER SEEN A PLAN WITH THIS MUCH DILUTION IN IT OVER SUCH A SHORT PERIOD OF TIME QUOTE SAID JOHN NELSON DIRECTOR OF INVESTMENTS FOR THE PENSION FUND SHAREHOLDERS ARE TO VOTE ON THE PROPOSALS AT THE FEBRUARY SEVENTEENTH ANNUAL MEETING JOHN R. OLTMAN CHAIRMAN OF S. H. L. DEFENDED THE COMPENSATION PLAN CALLING IT CRITICAL TO THE COMPANY'S SUCCESS IN ITS PROXY MATERIALS S. H. L. SYSTEMHOUSE SAID IT COULD SAVE TWENTY ONE MILLION DOLLARS DURING THE NEXT THREE YEARS BY REPLACING ITS CURRENT CASH INCENTIVE AND STOCK OPTION PLANS WITH A PROPOSED EXECUTIVE EQUITY PLAN MR. OLTMAN CALLED CRITICISM OF THE PROPOSED TWO NEW CLASSES OF STOCK UNFOUNDED LADD FURNITURE INCORPORATED HIGH POINT N. C. SAID IT EXPECTS TO REPORT A QUOTE MODEST QUOTE LOSS FOR THE FOURTH QUARTER COMPARED WITH THE PROFIT OF FIVE CENTS TO SIX CENTS A SHARE EXPECTED BY ANALYSTS LADD'S CHAIRMAN RICHARD R. ALLEN SAID SALES IN THE FINAL QUARTER DROPPED TO ONE HUNDRED TWENTY FOUR MILLION DOLLARS FROM ONE HUNDRED TWENTY NINE MILLION DOLLARS IN THE YEAR EARLIER PERIOD FOR WHICH THE COMPANY REPORTED NET INCOME OF ONE POINT FIVE MILLION DOLLARS OR SIX CENTS A SHARE LADD ATTRIBUTED THE SLUMP TO FEWER PRODUCT LINES MANUFACTURING INEFFICIENCIES AND SLOW SALES OF ITS HIGHER PRICED PENNSYLVANIA HOUSE LINE MR. ALLEN SAID THE SLOWDOWN IS TEMPORARY AND THAT STRONG HOUSING GROWTH AND REBOUNDING CONSUMER CONFIDENCE WILL BRING THE COMPANY BACK TO PROFITABILITY THIS YEAR ON THE NASDAQ STOCK MARKET LADD SHARES CLOSED AT TEN POINT ONE TWO FIVE DOLLARS DOWN ONE POINT THREE SEVEN FIVE DOLLARS OR TWELVE PERCENT W. R. GRACE AND COMPANY SAID IT EXPECTS TO REPORT A FOURTH QUARTER CREDIT OF TWO HUNDRED MILLION DOLLARS RESULTING FROM THE PARTIAL REVERSAL OF A CHARGE IT HAD TAKEN FOR ASBESTOS LITIGATION THE SPECIALTY CHEMICAL AND HEALTH CARE COMPANY BASED IN BOCA RATON FLORIDA SAID IT DECIDED TO POST THE CREDIT AFTER A FEDERAL APPEALS COURT AGREED TO REHEAR A DECISION THAT PROMPTED THE COMPANY TO TAKE A THREE HUNDRED MILLION DOLLAR CHARGE IN THE FIRST PLACE AT THAT TIME GRACE SAID THE CHARGE WAS NECESSARY AFTER THE U. S. COURT OF APPEALS FOR THE SECOND CIRCUIT IN SEPTEMBER REVERSED A LOWER COURT RULING ON A QUOTE TRIGGER QUOTE DATE FOR CALCULATING ASBESTOS PROPERTY DAMAGE THE APPEALS COURT RULED THAT INSURANCE COVERAGE BEGINS WHEN ASBESTOSCONTAINING MATERIAL WAS INSTALLED RATHER THAN WHEN IT WAS DISCOVERED AS LOWER COURTS HAD RULED THE APPEALS COURT RULING LED GRACE TO TAKE THE THREE HUNDRED MILLION DOLLAR CHARGE TO REFLECT A REDUCTION IN ITS INSURANCE COVERAGE FOR ASBESTOS DAMAGE CLAIMS WRT ENERGY CORPORATION SAID IT SIGNED A LETTER OF INTENT WITH TEXAS AMERICAN RESOURCES INCORPORATED TO SWAP ONE POINT SEVEN MILLION SHARES OF WRT'S RESTRICTED COMMON STOCK FOR A WORKING INTEREST IN CERTAIN PRODUCING OIL AND GAS PROPERTIES IN CAMERON PARISH LOUISIANA YESTERDAY IN NASDAQ STOCK MARKET TRADING WRT'S STOCK CLOSED AT ELEVEN DOLLARS AND FIFTY CENTS UP FIFTY CENTS GIVING THE TRANSACTION AN INDICATED VALUE OF NINETEEN POINT SIX MILLION DOLLARS THE TRANSACTION WILL INCREASE WRT'S PROVED OIL AND GAS RESERVES TO FORTY FIVE BILLION CUBIC FEET OF OIL EQUIVALENTS FROM EIGHTEEN POINT FOUR BILLION THE PRODUCING PROPERTIES INCLUDE THREE THOUSAND FIVE HUNDRED GROSS ACRES OF OIL AND GAS LEASES TWENTY SEVEN PRODUCTIVE WELLS AND SIXTY SHUT IN WELLS CURRENT DAILY PRODUCTION ON THE PROPERTIES IS ABOUT SIX HUNDRED BARRELS OF OIL EQUIVALENTS WRT BASED IN THE WOODLANDS TEXAS SAID IT EXPECTS THE SALE TO CLOSE JANUARY TWENTIETH WITH JANUARY FIRST BEING THE EFFECTIVE DATE INTERNATIONAL BUSINESS MACHINES CORPORATION'S METAPHOR INCORPORATED UNIT SAID IT WILL SHED EIGHTY EMPLOYEES TWENTY PERCENT OF ITS WORK FORCE AS PART OF A RESTRUCTURING THAT IS SEPARATE FROM I. B. M. OVERALL METAPHOR A SOFTWARE SUBSIDIARY THAT I. B. M. PURCHASED IN NINETEEN NINETY ONE ALSO NAMED CHRIS GREJTAK FORTY THREE YEARS OLD CURRENTLY A SENIOR VICE PRESIDENT PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS CATHIE SELLECK SIXTY WHO IS RETIRING MR. GREJTAK SAID IN AN INTERVIEW THAT THE STAFF REDUCTIONS WILL AFFECT MOST AREAS OF THE COMPANY RELATED TO ITS EARLY PROPRIETARY SOFTWARE PRODUCTS METAPHOR KNOWN FOR A PRODUCT CALLED DIS DATA INTERPRETATION SYSTEM HAS CHANGED ITS PRODUCT LINE TO BE LESS PROPRIETARY AND IS ABLE TO PARE BACK ON STAFF AS A RESULT HE SAID SOUTH CAROLINA ELECTRIC AND GAS COMPANY THE PRINCIPAL SUBSIDIARY OF SCANA CORPORATION SAID IT REACHED A SETTLEMENT WITH WESTINGHOUSE ELECTRIC CORPORATION RESOLVING A DISPUTE INVOLVING STEAM GENERATORS PROVIDED BY WESTINGHOUSE TO S. C. E. AND G'S V. C. SUMMER NUCLEAR STATION TERMS OF THE SETTLEMENT WEREN'T DISCLOSED S. C. E. AND G. HAD FILED AN ACTION IN MAY NINETEEN NINETY AGAINST WESTINGHOUSE IN FEDERAL COURT IN SOUTH CAROLINA SEEKING COMPENSATION FOR DAMAGES TO THE SUMMER STATION BADREDDIN CHALLAH THE EIGHTY EIGHT YEAR OLD PATRIARCH OF SYRIA'S MOST VENERABLE BUSINESS CLAN GREW RICH AMID BOGGLING CHANGE HE BEGAN GROWING CITRUS WHEN THE OTTOMAN TURKS RULED SYRIA FLOURISHED UNDER FRENCH COLONIALISM AND BECAME A CONFIDANT OF PRESIDENT HAFEZ AL ASSAD WHO LIVES TWO BLOCKS AWAY IN THE CAPITAL'S ELEGANT MALKI NEIGHBORHOOD SITTING AMID GILDED LOUIS THE FOURTEENTH FURNITURE AND STERN PORTRAITS OF ANCESTORS IN MAROON FEZ HATS MR. CHALLAH IS ANTICIPATING THE NEXT EPIC CHANGE IN THE MIDDLE EAST QUOTE WHEN YOU HAVE NEIGHBORS AND THERE IS WAR YOU DON'T DEAL WITH THEM AT ALL QUOTE HE SAYS REFERRING TO ISRAEL BUT YOU CAN IMAGINE WHAT THE BENEFITS WILL BE WHEN THERE IS PEACE AND YOU HAVE BUSINESS WITH YOUR NEIGHBOR HE TALKS OF A CHANGING WORLD IN WHICH OLD ENEMIES LIKE GERMANY AND FRANCE NOW ARE ECONOMICALLY ENTWINED SO WHAT'S THE DIFFERENCE BETWEEN US AND THE ISRAELIS THAT WE SHOULDN'T BECOME FRIENDS AND WORK TOGETHER SUCH THOUGHTS ONCE WERE NEVER EVEN WHISPERED IN HARD LINE SYRIA NOW PRESIDENT CLINTON WANTS TO HEAR THEM FROM THE CAUTIOUS AND WILY MR. ASSAD AT A SUMMIT MEETING THIS WEEKEND IN GENEVA MR. CLINTON WILL URGE THE SYRIAN LEADER TO END A LONG SYRIA ISRAEL NEGOTIATING STALEMATE BY DESCRIBING WHAT KIND OF PEACE HE WOULD OFFER ISRAEL IN EXCHANGE MR. CLINTON WILL DANGLE BEFORE MR. ASSAD WHOSE NATION IS ON THE U. S. TERRORISM LIST THE PROSPECT OF IMPROVED U. S. SYRIAN RELATIONS MR. ASSAD HAS DEMANDED THAT ISRAEL FIRST DECLARE THAT IT WILL WITHDRAW FROM THE GOLAN HEIGHTS BEFORE HE TALKS ABOUT PEACE ISRAEL INSISTS THAT MR. ASSAD GO FIRST WHAT THE U. S. ALSO WANTS FROM MR. ASSAD IS SOME PUBLIC GESTURE TOWARD ISRAEL THAT WILL LOOSEN THE IMPASSE SYRIA IS THE LINCHPIN OF ARAB ISRAELI PEACE FROM DAMASCUS THE HISTORIC CAPITAL OF ARAB NATIONALISM MR. ASSAD HAS LOOMED LARGE FOR A QUARTER CENTURY AS ISRAEL'S IMPLACABLE FOE SENDING HIS ARMIES TO WAR AGAINST THE JEWISH STATE IN NINETEEN SEVENTY THREE TO TRY TO RECOVER HIS LAND WHEN EGYPT MADE PEACE WITH ISRAEL IN NINETEEN SEVENTY NINE MR. ASSAD REFUSED TO SET FOOT IN THAT ARAB STATE FOR A DECADE NO ONE IN THE MIDDLE EAST WOULD DOUBT THE CRUCIAL CHARACTER OF SYRIA TO A COMPREHENSIVE PEACE SAYS SECRETARY OF STATE WARREN CHRISTOPHER EVEN AS MR. ASSAD IS HESITATING MR. CHALLAH SEEMS A RELIABLE BAROMETER OF THE SEA CHANGE UNDER WAY IN MUCH OF THE ARAB WORLD THE FORTY FIVE YEAR DEMONIZATION OF ISRAEL APPEARS TO HAVE RUN ITS COURSE OVERTURES TO ISRAEL ARE NOW COMING FROM ENTREPRENEURS IN JORDAN THE RESOURCE RICH PERSIAN GULF AND ARAB NORTH AFRICA AS THE REST OF THE WORLD FORMS REGIONAL ECONOMIC BLOCS MIDDLE EASTERNERS INCREASINGLY SEE THE BENEFITS OF REGIONAL TRADE AND THE LOWERING OF BARRIERS NONE OF WHICH CAN HAPPEN IF PEACE IS POSTPONED FURTHER THERE IS TALK OF A WORLD BANK FINANCED HIGHWAY CONNECTING ARAB STATES AND ISRAEL AND THROUGHOUT THE ARAB WORLD PEOPLE ARE REALIZING THAT PEACE WILL BRING STABILITY AND STABILITY WILL BRING BADLY NEEDED INVESTMENT THESE ECONOMIC HOPES PROVIDE AN UNDERGIRDING FOR THE PEACE TALKS THAT ENSURES THEY WILL PROCEED DESPITE INEVITABLE UPS AND DOWNS THE CHANGE BEGAN IN NINETEEN NINETY ONE WHEN ARABS AND ISRAELIS AGREED TO MEET AT THE NEGOTIATING TABLE FOR THE FIRST TIME AND ACCELERATED LAST SEPTEMBER WHEN ISRAELI PRIME MINISTER YITZHAK RABIN AND PALESTINE LIBERATION ORGANIZATION LEADER YASSER ARAFAT SHOOK HANDS ON THE WHITE HOUSE LAWN I SEE MORE AND MORE ACTIVITY GOING ON OPENLY BUT IN A VERY LOW PROFILE WAY BETWEEN ARABS AND ISRAELIS SAYS BENJAMIN GAON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF KOOR INDUSTRIES ISRAEL'S LARGEST CONGLOMERATE A WEALTHY JORDANIAN SHIPPING COMPANY OWNER RECENTLY VISITED ISRAEL TO DISCUSS JOINT VENTURES WITH A MAJOR CONTAINER COMPANY AND ISRAEL'S EL AL AIRLINE MOROCCO WHOSE MERCHANTS SELL ISRAELI GROWN TOMATOES IN EUROPE EXPECTS TO HOST ONE HUNDRED THOUSAND ISRAELI TOURISTS THIS YEAR IN SAUDI ARABIA WEALTHY TRADERS TALK PRIVATELY ABOUT PARTNERSHIPS IN MUSLIM CENTRAL ASIA WITH THE ISRAELIS WHO ARE MAKING INROADS THERE BUSINESS EXECUTIVES IN TIGHTLY CONTROLLED SYRIA ARE HESITANT TO TAKE SUCH OVERT STEPS BUT EVEN HERE WHERE PEOPLE LANGUISH IN JAIL FOR EXPRESSING OBJECTIONABLE VIEWS AND THE WORD ISRAEL WASN'T MENTIONED IN THE PRESS UNTIL NINETEEN NINETY ONE SOME PROMINENT CITIZENS FEEL COMFORTABLE TALKING ABOUT RECONCILIATION QUOTE LET US TEACH OUR KIDS THAT THE ISRAELIS ARE NOT ANIMALS AND LET THE ISRAELIS TEACH THEIR KIDS THAT WE ARE NOT ANIMALS QUOTE SAYS MUHAMMAD AZIZ SHUKRI DEAN OF THE LAW SCHOOL AT DAMASCUS UNIVERSITY UP TO NOW UNFORTUNATELY OUR BEHAVIOR IS OF ANIMALS IN THE ZOO PUSHING SYRIAN ISRAELI PEACE IS A TOP U. S. PRIORITY WITH RUSSIA LOOKING PRECARIOUS AND HAITI BOSNIA AND SOMALIA SUNK IN QUAGMIRES MR. CLINTON BADLY NEEDS A FOREIGN POLICY VICTORY HIS MIDEAST ADVISERS BELIEVE THE TIME IS RIPE FOR A DEAL MEANWHILE MR. ASSAD'S WORLD VIEW HAS BEEN JOSTLED BY THE COLLAPSE OF HIS SUPERPOWER PATRON THE SOVIET UNION AS SYRIA'S SOVIET MADE MILITARY INVENTORY DETERIORATES TALKS WITH THE RUSSIANS ABOUT BUYING SPARE PARTS DRAG ON ENDLESSLY DIPLOMATS SAY BECAUSE NO ONE IN MOSCOW IS LISTENING GONE TOO IS THE BARTER TRADE WITH THE SOVIET BLOC THAT ONCE KEPT SYRIAN TEXTILE PHARMACEUTICAL AND COSMETIC FACTORIES HUMMING AND PAID FOR MR. ASSAD'S WEAPONS PURCHASES BUT WHILE THE ECONOMIES OF CUBA AND NORTH KOREA ARE WITHERING IN THE POST SOVIET WORLD SYRIA IS LOOKING TO IMPROVE TIES WITH THE WEST SYRIAN BUSINESSES HAVING LOST SOVIET MARKETS SEE OPPORTUNITIES IN THE WEST AND THE DAMASCUS GOVERNMENT IS BEGINNING TO LOOSEN UP ENOUGH FOR BUSINESSES TO REACH OUT LAST YEAR BUSINESSES WON THE RIGHT TO OWN FAX MACHINES THIS YEAR COMPANIES ARE PUSHING FOR SATELLITE DISHES UNDERLYING THE BUSINESS ACTIVITY IS AN ASSUMPTION OF PEACE PEACE MEANS RELATIONS IN ALL FIELDS BUSINESS AND OTHERWISE SAYS HISBAM AL HAMWY GENERAL DIRECTOR OF THE DAMASCUS CHAMBER OF COMMERCE WHAT'S UNCLEAR IS JUST HOW FAR THE AUTHORITARIAN MR. ASSAD IS WILLING TO GO IN LOOSENING GOVERNMENT CONTROL ALTHOUGH HE HAS PLAYED A WEAK HAND SHREWDLY MR. CLINTON'S INVITATION TO MEET IN GENEVA ATTESTS TO THAT MR. ASSAD REMAINS A NINETEEN FIFTY SSTYLE DICTATOR HIS PICTURE ADORNS PRACTICALLY EVERY DOWNTOWN BUILDING HERE AND THERE ARE HUGE STALIN LIKE STATUES OF HIM ALONG MAJOR HIGHWAYS TAXICABS DISPLAY BUMPER STICKERS SHOWING A RED HEART ALONGSIDE A LIKENESS OF MR. ASSAD ELSEWHERE IN THE ARAB WORLD BUSINESSMEN ARE POISED FOR PEACE WAITING FOR THE POLITICIANS TO CATCH UP IN HIS OFFICE IN AMMAN JORDAN DAWUD QUTUB OWNER OF A LARGE SHIPPING AGENCY USES A BIG WORLD MAP ON THE WALL TO TRACE THE ROUTE OF A SHIP BOUND FOR THE PERSIAN GULF FROM EUROPE VIA THE SUEZ CANAL AT THE NORTHEAST TIP OF AFRICA HE STOPS FROM THE SUEZ TO KUWAIT HE EXPLAINS IS A NINE DAY SAIL PLUS THE EXPENSE OF EGYPT'S EVER RISING CANAL FEES BUT FROM HAIFA IN ISRAEL TO KUWAIT A SEVENTY TWO HOUR TRUCK RIDE I BELIEVE THAT ONCE THE PEACE IS SIGNED A BOOM WILL HIT THE TRIANGLE OF NATIONS JORDAN ISRAEL AND PALESTINE THAT WILL LAST FOR TEN YEARS GUSHES MR. QUTUB A PALESTINIAN REFUGEE MR. QUTUB IN NOVEMBER TRAVELED TO ISRAEL USING A FAMILY VISIT VISA AND MET WITH OFFICIALS AT ZIM SHIPPING LINES IN HAIFA WHERE HE TOUTED HIS COMPANY INTERNATIONAL FREIGHT SERVICES AND TRADING COMPANY AS ZIM'S JORDAN AGENT HE ALSO MET WITH OFFICIALS OF EL AL AND UNITOURS A LARGE TOUR OPERATOR IN TEL AVIV TO DISCUSS OTHER VENTURES THE ISRAELIS TALKED ABOUT THEIR MASTER PEACE PLAN TO UNITE THE TWIN RED SEA PORTS OF AQABA IN JORDAN AND EILAT IN ISRAEL MR. QUTUB TOURED THE ISRAELI HIGHWAY NETWORK ASTONISHING HE SAYS THEN HE DISCOVERED SOMETHING EVEN MORE SURPRISING MR. QUTUB VISITED THE HOME HE FLED AS A SIXTEEN YEAR OLD DURING THE NINETEEN FORTY EIGHT ARAB ISRAELI WAR MOROCCAN JEWS NOW LIVE THERE WHEN HE KNOCKED ON THEIR DOOR AND TOLD HIM WHO HE WAS THEY ASKED HIM IF HE WANTED TO STAY THERE DURING HIS VISIT OTHER JORDANIANS ARE PREPARING THEMSELVES FOR SIMILAR CLOSE ENCOUNTERS WITH ISRAELIS IN A TINY CLASSROOM AT THE AL JALIL RESEARCH CENTER NEAR JORDAN UNIVERSITY NEARLY THREE HUNDRED BUSINESSMEN NURSES ENGINEERS LAWYERS COLLEGE STUDENTS AND OTHERS HAVE STUDIED HEBREW OVER THE PAST TWO YEARS THEY EACH PAY THE EQUIVALENT OF ABOUT NINETY DOLLARS READING ALOUD FROM THE SAME HEBREW BOOKS USED TO TEACH RUSSIAN IMMIGRANTS IN ISRAEL WHERE ARE YOU FROM MENASHE ASKS ONE LESSON QUOTE I'M FROM KISHNIEV AND WHERE ARE YOU FROM ESTHER I'M FROM SIBERIA AND WHERE IS THE CENTER'S OWNER GHAZI AL SADI FROM ISRAEL ORIGINALLY AN ISRAELI ARAB HE WAS KICKED OUT FOR SUBVERSIVE ACTIVITIES IN NINETEEN SEVENTY SEVEN AMONG OTHER THINGS HE NOW DISTRIBUTES ARABIC TRANSLATIONS OF THE HEBREW PRESS TO GOVERNMENT OFFICES BANKS AND PRIVATE COMPANIES THROUGHOUT THE ARAB WORLD RECENTLY SOME ARAB CLIENTS MR. SADI WON'T NAME COMMISSIONED STUDIES OF THE ISRAELI BANKING CONSTRUCTION AND AGRICULTURAL INDUSTRIES THE CENTER'S BIGGEST JOB THOUGH HAS JUST COME FROM THE JORDANIAN GOVERNMENT THE KINGDOM'S CUSTOMS AUTHORITY HAS HIRED AL JALIL TO TRANSLATE ISRAEL'S ENTIRE ONE THOUSAND EIGHT HUNDRED PAGE MANUAL OF TRADE REGULATIONS SIMILAR PLANNING FOR THE FUTURE IS UNDER WAY EVEN IN ARCHCONSERVATIVE SAUDI ARABIA ACCORDING TO DIPLOMATS DURING THE PERSIAN GULF WAR SAUDI ARABIA CUT OFF ITS PURCHASES OF CITRUS PRODUCTS FROM JORDAN TO PUNISH THAT NATION FOR ITS SUPPORT OF IRAQ'S SADDAM HUSSEIN THE SAUDIS BEGAN BUYING CITRUS FROM CALIFORNIA BUT NOW SOME MERCHANTS TALK PRIVATELY ABOUT THE ADVANTAGES OF BUYING THESE FRUITS FROM NEARBY ISRAEL THE FRUIT PURCHASES WOULD BE PART OF A LARGER TRADING RELATIONSHIP THAT IS BEGINNING TO EVOLVE THERE HAVE BEEN SECRET DISCUSSIONS BETWEEN THE HEAD OF THE SAUDI ARABIAN CHAMBER OF COMMERCE AND HIS ISRAELI COUNTERPART ACCORDING TO DIPLOMATS ONE IDEA BEING MULLED BY SAUDI ENTREPRENEURS WOULD INVOLVE A JOINT VENTURE WITH THE ISRAELIS IN CENTRAL ASIAN REPUBLICS OF THE FORMER SOVIET UNION ISRAEL ALREADY HAS SENT TRADE MISSIONS TO SEVERAL OF THE CENTRAL ASIAN NATIONS TO SELL AGRICULTURAL TECHNOLOGY MOST OF THE CENTRAL ASIAN STATES DON'T HAVE SUFFICIENT CASH TO PAY FOR SUCH PRODUCTS BUT SOME SAUDI MERCHANTS IN JEDDAH ENVISION SETTING UP JOINT VENTURES WITH THE ISRAELIS UNDER WHICH THE SAUDI PARTNER WOULD TAKE COMMODITIES AS PAYMENT AND TRADE THEM ELSEWHERE AMONG PERSIAN GULF STATES QATAR HAS HAD THE MOST OPEN TIES WITH ISRAEL IN SEPTEMBER QATAR'S FOREIGN MINISTER MET ISRAELI FOREIGN MINISTER SHIMON PERES IN NEW YORK MR. PERES WAS TOLD THAT ONCE ARAB ISRAELI PEACE IS ACHIEVED THE SKY'S THE LIMIT ON RELATIONS ACCORDING TO ONE DIPLOMAT QATAR WHICH HAS THE WORLD'S SECOND LARGEST NATURAL GAS RESERVES WOULD CONSIDER A JOINT VENTURE TO TRANSPORT ITS NATURAL GAS BY PIPELINE ACROSS SAUDI ARABIA TO ISRAEL WHERE IT WOULD BE LIQUEFIED AND SHIPPED ACROSS THE MEDITERRANEAN TO EUROPE FEASIBILITY STUDIES FOR SUCH A PROJECT ALREADY ARE UNDER WAY UNLIKE SOME OF THEIR ARAB COLLEAGUES SYRIAN BUSINESSMEN STILL AREN'T WILLING TO TALK OPENLY ABOUT PLANS WITH ISRAEL BUT ONE YOUNG ENTREPRENEUR SAYS ANONYMOUSLY THAT HE BELIEVES THERE COULD BE A MARKET FOR SUCH LOW TECH PRODUCTS AS CANNED GOODS SOCKS AND SOAP SITTING BEHIND A DESK WITH A PERSONAL COMPUTER AND A NO SMOKING SIGN TWO RARITIES HERE HE SAYS THAT WITH AN OFFICIAL MINIMUM WAGE OF THIRTY DOLLARS A MONTH FOR A SIX DAY WORK WEEK SYRIA SHOULD BE ABLE TO COMPETE ON LOW COST ITEMS OTHER SYRIAN EXECUTIVES FIGURE A PEACE DIVIDEND COULD HELP PAY FOR IMPROVEMENTS IN THE COUNTRY'S ROADS ELECTRICAL SYSTEM AND TELEPHONE NETWORK SAEB NAHAS WHO WORKS BEHIND A HUGE DESK THAT HOLDS EIGHT TELEPHONES WITH DIRECT LINES TO THE TWENTY SIX COMPANIES HE RUNS SAYS FOR FORTY YEARS SYRIA HAS BEEN USING SOMETHING LIKE SIXTY PERCENT OF ITS BUDGET FOR DEFENSE AS A RESULT SAYS MR. NAHAS ONE OF SYRIA'S RICHEST ENTREPRENEURS THERE ARE CHRONIC SHORTAGES OF FOREIGN EXCHANGE AND A PAUCITY OF THE CAPITAL SPENDING NEEDED FOR ROADS MODERN AIRPORTS AND THE FACILITIES TO GENERATE MORE ELECTRICITY POWER OUTAGES OCCUR EVERY DAY IN DAMASCUS FOR NOW THOUGH EVERYONE IS WAITING FOR MR. ASSAD U. S. OFFICIALS KNOW THAT AFTER THE SURPRISE SIGNING OF THE ISRAELI PALESTINIAN PEACE ACCORD IN SEPTEMBER MR. ASSAD TOLD MILITARY AND BAATH PARTY LEADERS THAT THE TIME HAD COME TO TALK ABOUT MAKING PEACE WITH ISRAEL BUT U. S. OFFICIALS ARE UNSURE IF HE IS WILLING TO OFFER A DEAL THAT MR. RABIN CAN SELL IN ISRAEL IN MEETINGS WITH MR. CHRISTOPHER AND U. S. AIDES MR. ASSAD ASKS PROBING QUESTIONS ABOUT ISRAELI POLITICS AND ON ONE OCCASION DISPLAYED DETAILED KNOWLEDGE OF POLITICAL REPORTS FROM RELATIVELY OBSCURE ISRAELI NEWSPAPERS U. S. OFFICIALS BELIEVE THAT MR. ASSAD UNDERSTANDS THAT HE CAN MAKE A DEAL WITH MR. RABIN AND THAT IF THE HARD LINE LIKUD PARTY RETURNS TO POWER THE OPPORTUNITY MAY BE LOST NOW THE U. S. IS TRYING TO CONVINCE MR. ASSAD TO OFFER TERMS THAT WILL BOLSTER MR. RABIN FOR WHOM RETURNING THE GOLAN TO SYRIA WILL BE A HARD SELL AT HOME OTHER SIGNALS DRIBBLE OUT IN THE STATECONTROLLED SYRIAN PRESS LAST MONTH FOR INSTANCE SYRIAN PAPERS RAN A BRIEF STORY SAYING THAT MOROCCO WAS ON THE VERGE OF OPENING DIPLOMATIC TIES WITH ISRAEL THE STORY CONTAINED NEITHER CRITICISM NOR COMMENTARY BY CONTRAST IN NINETEEN EIGHTY SIX WHEN WORD LEAKED THAT MOROCCO'S KING HASSAN HAD MET WITH ISRAEL'S MR. PERES SYRIA SEVERED RELATIONS WITH MOROCCO HERE IN DAMASCUS THERE IS A FEELING THAT THE DECISION FOR PEACE HAS BEEN MADE AND THAT ALL THAT REMAINS TO BE WORKED OUT ARE THE DETAILS IT'S A POKER GAME AND THIS SON OF A GUN MR. ASSAD KNOWS HOW TO PLAY THE GAME SAYS MR. SHUKRI OF DAMASCUS UNIVERSITY THE SECURITIES AND EXCHANGE COMMISSION STAFF APPEARS TO BE GIVING CLOSER SCRUTINY TO PERSONAL STOCK TRADING BY MUTUAL FUND MANAGERS NATIONWIDE LAST WEEK'S FIRING OF STAR MANAGER JOHN KAWESKE FOR ALLEGEDLY FAILING TO TELL HIS EMPLOYER INVESCO FUNDS GROUP ABOUT PERSONAL STOCK TRADES MAY BE JUST THE TIP OF THE ICEBERG WHEN IT COMES TO POSSIBLE ABUSES OF PERSONAL TRADING QUOTE ANY QUESTION IN ANY FUND HAS TO STRIKE FEAR INTO THE HEART OF THE FUND INDUSTRY QUOTE SAYS BARRY BARBASH DIRECTOR OF THE S. E. C.'S DIVISION OF INVESTMENT MANAGEMENT IN WASHINGTON IT GOES TO THE HEART OF THE FIDUCIARY RESPONSIBILITY ANOTHER S. E. C. OFFICIAL SAYS WHEN SOMETHING LIKE THIS HAPPENS THERE IS A LOT OF ACTIVITY TO FIND OUT HOW WIDESPREAD IT IS EVERYBODY IS EXAMINING THEIR REGION TO FIND OUT WHAT EXACTLY IS HAPPENING THE SCRUTINY CHALLENGES A LONGSTANDING FUND INDUSTRY PRACTICE OF TAKING PERSONAL TRADING AS A POINT OF PRIDE AT FIDELITY INVESTMENTS THE NATION'S LARGEST MUTUAL FUND GROUP MOST PORTFOLIO MANAGERS MAYBE ALL OF THEM BUY AND SELL STOCKS FOR THEIR OWN ACCOUNT SAYS STUART WILLIAMS LEY A FORMER FIDELITY FUND MANAGER WHO IS NOW STARTING A PRIVATE SCHOOL COMPANY ON THE WEST COAST IT'S ENCOURAGED IT'S PART OF THE CULTURE THE FIRM FEELS INVESTING YOUR OWN MONEY IS EDUCATIONAL HE ADDS QUOTE IT'S ALWAYS BEEN ONE OF THE PRINCIPAL ASPECTS OF THE CULTURE THAT PEOPLE TRADED AGGRESSIVELY FOR THEIR OWN ACCOUNTS QUOTE MR. WILLIAMS LEY SAID THERE IS TALK AT FIDELITY THAT THREE FUND MANAGERS WERE TAKEN TO THE WOODSHED IN LATE NINETEEN NINETY THREE FOR PERSONAL TRADES THAT VIOLATED THE SPIRIT IF NOT THE LETTER OF FIDELITY'S ETHICS CODE HE DECLINED TO IDENTIFY THE MANAGERS WILLIAM HAYES MANAGING DIRECTOR AND HEAD OF THE EQUITIES GROUP AT FIDELITY SAID WE HAVE SEEN NO EVIDENCE OF THIS HAPPENING THE ALLEGATION ABOUT WHAT THREE OF OUR FUND MANAGERS HAVE DONE HE ADDED WE HAVE TAKEN SOME DISCIPLINARY ACTIONS IN THE PAST BUT I'M NOT GOING TO DISCUSS THE PARTICULARS FIDELITY TIGHTENED ITS PERSONAL TRADING RULES IN NOVEMBER AND ONE FUND MANAGER AT FIDELITY SAYS HE EXPECTS TO SEE EVEN STRICTER STANDARDS IN THE NEAR FUTURE THE RULES ARE MEANT TO DISCOURAGE ABUSES SUCH AS FRONT RUNNING TRADING IN A STOCK THAT MIGHT BE AFFECTED SOON AFTERWARD BY A POWERFUL FUND'S BUYING OR SELLING FUND INDUSTRY EXECUTIVES DIDN'T PAY MUCH ATTENTION TO PERSONAL TRADING AS AN ETHICAL ISSUE BEFORE NINETEEN NINETY THREE BUT NOW ALL THAT HAS CHANGED THE MUTUAL FUND INDUSTRY IS WORRIED ITS CHIEF TRADE GROUP THE INVESTMENT COMPANY INSTITUTE IS CIRCULATING A SIXTY PAGE NEW AND IMPROVED MANUAL ON HOW TO WRITE A CODE OF ETHICS THE REVISED TOME DRAFTING GUIDES FOR CODES OF ETHICS AND PROCEDURES TO PREVENT INSIDER TRADING HAS BEEN MAKING THE ROUNDS FOR MONTHS SINCE WELL BEFORE LAST WEEK'S OUSTER OF MR. KAWESKE BY DENVER BASED INVESCO THE S. E. C. USED TO DEVOTE MORE TIME AND ATTENTION TO MONEY MARKET FUNDS SAYS THE AGENCY'S MR. BARBASH AT THESE HUMDRUM CASH LIKE FUNDS PERSONAL TRADING WASN'T MUCH OF AN ISSUE BUT NOW UNDER CHAIRMAN ARTHUR LEVITT THE S. E. C. HAS DECIDED THAT ITS INSPECTION FOCUS NEEDED TO BE SHIFTED TO STOCK AND BOND FUNDS INCLUDING SMALLER FUND GROUPS AND NEWCOMERS MR. BARBASH SAYS THESE UPSTARTS AND LITTLE FUND COMPANIES DIDN'T ALWAYS GET SUCH A CLOSE LOOK IN THE PAST THE S. E. C.'S NEW MOOD HASN'T ESCAPED NOTICE AT FUND COMPANIES ONE COMPANY IN THE MIDST OF AN OTHERWISE ROUTINE S. E. C. EXAM WAS SURPRISED TO BE ASKED FOR ONE AND ONE HALF YEARS OF RECORDS OF PERSONAL TRADES BY PORTFOLIO MANAGERS A LAWYER SAYS THE S. E. C. IS ALSO SCRUTINIZING RELATED QUESTIONS SUCH AS HOW MONEY MANAGERS ALLOCATE THE DAILY BLIZZARD OF STOCK TRADES AMONG THE VARIOUS ACCOUNTS THEY MANAGE INCREASINGLY FUND MANAGERS DO DOUBLE TRIPLE OR QUADRUPLE DUTY MANAGING SEPARATE ACCOUNTS FOR PENSION FUNDS PRIVATE INDIVIDUALS THEIR OWN ACCOUNTS OR PROFITSHARING PLANS FOR THEIR EMPLOYERS KEMPER CORPORATION LAST FALL AGREED TO PAY MORE THAN NINE MILLION DOLLARS TO SETTLE CIVIL S. E. C. CHARGES THAT ONE OF ITS MUTUAL FUND MANAGERS HAD GIVEN WINNING TRADES TO A KEMPER PROFIT SHARING PLAN WHILE DUMPING LOSING TRADES IN TWO KEMPER MUTUAL FUNDS QUOTE MUTUAL FUNDS ARE AN INCREASINGLY PREFERRED VEHICLE FOR INDIVIDUAL INVESTORS SO WE WILL BE SPENDING MORE OF OUR LIMITED RESOURCES QUOTE ON AREAS SUCH AS FUND MANAGER TRADING AND ALLOCATION SAYS S. E. C. COMMISSIONER J. CARTER BEESE JUNIOR HE SAYS MUCH OF THE WATCHDOG DUTY FALLS ON THE SHOULDERS OF FUND DIRECTORS ELECTED BY SHAREHOLDERS TO WATCH OUT FOR THEIR INTERESTS IN HIS VIEW FUND DIRECTORS NEED TO TAKE THE INITIATIVE TO MAKE SURE FUNDS AND THEIR MANAGERS BEHAVE APPROPRIATELY SAYS MR. BEESE THE CORPORATE GOVERNANCE WAVE THAT REVOLUTIONIZED BOARDS OF DIRECTORS ACROSS THE U. S. SEEMS TO BE MANIFESTING ITSELF IN THE BOARDROOMS OF INVESTMENT COMPANIES AND AN UPGRADING OF STANDARDS IS CERTAINLY DUE SAYS KATHRYN MCGRATH FORMER HEAD OF THE S. E. C. INVESTMENT MANAGEMENT DIVISION AND NOW A PARTNER AT THE WASHINGTON LAW FIRM MORGAN LEWIS AND BOCKIUS THE MUTUAL FUND INDUSTRY HAS A VERY CLEAN REPUTATION SHE SAYS BUT BECAUSE OF THE INDUSTRY'S EXPLOSIVE GROWTH THERE IS SO MUCH MORE MONEY BEING HANDLED IN THE CARE OF THESE FOLKS THAT THE STANDARDS FOR WATCHING THEM NEED TO BE RAISED THE CANADIAN GOVERNMENT WARNED THAT IT IS PREPARED TO INTERCEPT QUOTE PIRATE QUOTE FISHING BOATS OPERATING IN THE HIGH SEAS OF THE NORTHWEST ATLANTIC SUCH ACTION WOULD BE AN UNPRECEDENTED USE OF CANADIAN NAVAL POWER OUTSIDE CANADIAN WATERS IN PEACETIME A GOVERNMENT OFFICIAL SAID THE WARNING WAS ISSUED BY FISHERIES MINISTER BRIAN TOBIN AT THE CONCLUSION OF A VISIT TO EUROPE TO TRY TO WIN SUPPORT FOR TOUGHER ACTION TO PROTECT HARD PRESSED FISH STOCKS OFF CANADA'S EAST COAST CANADA IS ENFORCING TOUGH RESTRICTIONS ON FISHING FOR COD AND OTHER SPECIES WITHIN ITS FISHERIES JURISDICTION WHICH EXTENDS TWO HUNDRED MILES FROM THE CANADIAN COAST BUT THE GOVERNMENT SAID FOREIGN FISHING BOATS ARE UNDERMINING CANADA'S CONSERVATION EFFORTS BY HAULING AWAY FISH JUST BEYOND CANADA'S TWO HUNDRED MILE LIMIT SOME OF THESE BOATS ARE OWNED BY EUROPEANS BUT REGISTERED IN COUNTRIES SUCH AS PANAMA HONDURAS AND BELIZE THE GOVERNMENT SAID MR. TOBIN SAID THESE FLAG OF CONVENIENCE VESSELS ARE MODERN DAY PIRATES HE SAID CANADA IS PREPARED IF NECESSARY TO ACT ALONE AGAINST SUCH BOATS IF THAT'S WHAT IT TAKES TO STOP THE DESTRUCTION OF FISH STOCKS THE MINISTER SAID WE'RE SATISFIED WHAT WE ARE PROPOSING IS PERFECTLY IN KEEPING WITH THE INTERNATIONAL LAW OF THE SEA THE GOVERNMENT INTENDS TO SERVE NOTICE IN PARLIAMENT NEXT WEEK OF ITS INTENTION TO SEEK LEGISLATION AUTHORIZING ACTION AGAINST STATELESS OR FLAG OF CONVENIENCE VESSELS OUTSIDE CANADIAN WATERS DAVID VANDERZWAAG A DALHOUSIE UNIVERSITY LAW SCHOOL PROFESSOR SAID IT ISN'T CLEAR WHETHER CANADA WOULD BE VIOLATING INTERNATIONAL LAW IF IT TOOK ACTION AGAINST FISHING VESSELS ON THE HIGH SEAS BEYOND TWO HUNDRED NAUTICAL MILES IT'S CLEARLY VERY CONTROVERSIAL IN TERMS OF WHAT ANY COASTAL STATE CAN DO HE SAID INTERNATIONAL LAW IS A VERY CREATIVE ARENA THE NORTHWEST ATLANTIC FISHERIES ORGANIZATION WAS FORMED IN NINETEEN SEVENTY EIGHT TO MANAGE INTERNATIONAL WATERS OFF CANADA'S GRAND BANKS FISHING GROUND THE ORGANIZATION'S MEMBERS INCLUDE CANADA THE EUROPEAN UNION BULGARIA CUBA ESTONIA ICELAND JAPAN LATVIA LITHUANIA NORWAY POLAND ROMANIA AND RUSSIA THE EUROPEAN UNION HAS COMMITTED ITSELF TO ENSURING THAT ITS MEMBER STATE VESSELS RESPECT NAFO FISHING QUOTAS AND REGULATIONS MR. TOBIN SAID QUOTE OUR QUARREL NOW IS TARGETED AGAINST VESSELS THAT HAVE NO LEGITIMATE INTERNATIONAL QUOTAS IN THE NAFO AREA THEY ARE UNDERMINING CONSERVATION AND INTERNATIONAL FISHERIES RULES TO THE DETRIMENT OF ALL NAFO MEMBERS THE DECLINE IN FISH STOCKS OFF CANADA'S COAST HAS CRIPPLED THE FISHING INDUSTRY IN THE ATLANTIC PROVINCES MORE THAN THIRTY FIVE THOUSAND FISHERMEN AND FISH PLANT WORKERS HAVE LOST THEIR JOBS SINCE NINETEEN NINETY ONE PRESIDENT CLINTON BUCKLING UNDER INTENSE BIPARTISAN PRESSURE CALLED FOR THE APPOINTMENT OF A SPECIAL COUNSEL TO LOOK INTO HIS CONTROVERSIAL INVESTMENT IN WHITEWATER DEVELOPMENT COMPANY WHITE HOUSE AIDES SAID THE PRESIDENT'S TURNABOUT WAS A POLITICAL JUDGMENT IF SOMETHING WEREN'T DONE TO QUIET THE CLAMOR OVER WHITEWATER NONE OF THE PRESIDENT'S OTHER PRIORITIES WOULD BE HEARD IN RECENT DAYS EVEN DEMOCRATIC LAWMAKERS WERE ASKING THE PRESIDENT TO OPEN HIS FAILED REAL ESTATE INVESTMENT TO MORE SCRUTINY QUOTE WE STILL KNOW THE CLINTONS DIDN'T DO ANYTHING WRONG QUOTE ASSERTED WHITE HOUSE AIDE GEORGE STEPHANOPOULOS ADDING THAT THE PRESIDENT'S CALL FOR ATTORNEY GENERAL JANET RENO TO APPOINT A SPECIAL COUNSEL WAS QUOTE REWARDING IRRESPONSIBLE ALLEGATIONS QUOTE BUT AT A NEWS BRIEFING WHERE THE PRESIDENT'S DECISION WAS ANNOUNCED HE ADDED THIS CONTROVERSY IS BECOMING TOO MUCH OF A DISTRACTION CONFRONTED WITH THE PRESIDENT'S REQUEST MS. RENO REVERSED HER OPPOSITION TO SUCH A MOVE SAYING SOMETIMES WE HAVE TO GO BEYOND WHAT IS GENERALLY APPROPRIATE SIMPLY TO ASSURE PEOPLE THAT WE HAVE GONE THE EXTRA MILE MS. RENO ADDED THAT SHE HADN'T TALKED TO ANYONE IN THE WHITE HOUSE YESTERDAY ABOUT THE PRESIDENT'S REQUEST A DEPARTMENT SPOKESMAN SAID SHE READ THE LETTER IN WHICH THE WHITE HOUSE ASKED HER TO NAME A SPECIAL COUNSEL ONLY FIVE OR TEN MINUTES BEFORE IT WAS MADE PUBLIC THE ATTORNEY GENERAL SAID THE SPECIAL COUNSEL WOULD BE APPOINTED AS SOON AS POSSIBLE BUT DIDN'T SAY WHOM SHE WHOULD CHOOSE THE SPECIAL COUNSEL WILL REPORT TO MS. RENO BUT OPERATE INDEPENDENTLY OF THE JUSTICE DEPARTMENT THE COUNSEL WILL HAVE THE POWER TO ISSUE SUBPOENAS AND IF NECESSARY CONVENE A GRAND JURY BUT EVEN AS THE ADMINISTRATION WAS MOVING TOWARD CALLING FOR A SPECIAL COUNSEL A STEP MR. CLINTON RESISTED FOR WEEKS REPUBLICANS ON CAPITOL HILL SAID THEY WANTED MORE G. O. P. LEADERS IN THE HOUSE AND SENATE SAID THEY WOULD SEEK TO CREATE SPECIAL COMMITTEES THAT WOULD PLUMB THE MANY MYSTERIES THAT STILL SWIRL AROUND THE FAILED ARKANSAS REAL ESTATE COMPANY IN MY VIEW APPOINTMENT OF A SPECIAL COUNSEL DOESN'T TAKE AWAY OUR RESPONSIBILITY IN CONGRESS SAID SENATE MINORITY LEADER ROBERT DOLE OF KANSAS WE NEED TO DETERMINE THE ANSWERS TO ALL THE QUESTIONS THAT HAVE BEEN RAISED WE MUST MEET OUR RESPONSIBILITY JUST AS THE EXECUTIVE BRANCH MUST MEET ITS RESPONSIBILITY QUOTE THE ISSUE WON'T DIE WITH THE PRESIDENT'S ANNOUNCEMENT WHILE THE WHITE HOUSE SAID MR. CLINTON WOULD TURN OVER HIS WHITEWATER FILES TO A SPECIAL COUNSEL HE STILL DOESN'T INTEND TO GIVE THEM TO ANY CONGRESSIONAL COMMITTEE OR TO THE PUBLIC AT LARGE GOSH NO MR. STEPHANOPOULOS SAID IN THE INTERVIEW THE SPECIAL COUNSEL'S REPORT HE SAID WOULD BE THE VEHICLE TO CLEAR THE AIR ON THE MATTER THE PRESIDENT HAD PREVIOUSLY AGREED TO TURN OVER HIS WHITEWATER DOCUMENTS TO THE JUSTICE DEPARTMENT WHICH IS LOOKING INTO THE ARKANSAS COMPANY AS PART OF A BROADER INQUIRY INTO MADISON GUARANTY SAVINGS AND LOAN A FAILED LITTLE ROCK ARKANSAS THRIFT OWNED BY JAMES MCDOUGAL MR. MCDOUGAL WAS A BUSINESS PARTNER OF BILL AND HILLARY RODHAM CLINTON IN WHITEWATER IN THE NINETEEN EIGHTIES AND WAS A POLITICAL SUPPORTER OF MR. CLINTON WHEN HE WAS ARKANSAS GOVERNOR MS. RENO WOULDN'T DEFINE THE SCOPE OF THE INDEPENDENT COUNSEL'S INVESTIGATION THE EXISTING PROBES BY DEPARTMENT OFFICIALS WILL CONTINUE UNTIL THE APPOINTMENT OF THE SPECIAL COUNSEL WHO WILL DECIDE WHETHER TO USE THE CURRENT INVESTIGATORS THE DEPARTMENT SPOKESMAN SAID A VARIETY OF ACCUSATIONS AND SUSPICIONS HAVE ARISEN ABOUT THE DEALINGS OF MR. MCDOUGAL AND THE CLINTONS INCLUDING QUESTIONS ABOUT TAX PAYMENTS AND INTERFERENCE IN BANK REGULATION MR. CLINTON HAS STEADFASTLY DENIED ANY WRONGDOING THE MOST IMPORTANT THING TO ME AND THE MOST IMPORTANT THING TO THE AMERICAN PEOPLE IS I'M COMPLETELY RELAXED ABOUT THIS BECAUSE I DIDN'T DO ANYTHING WRONG EXCEPT I MADE A BAD BUSINESS DEAL MR. CLINTON SAID TUESDAY IN AN INTERVIEW WITH C. B. S. NEWS SPECIFICALLY THE JUSTICE DEPARTMENT IS LOOKING INTO WHETHER MR. MCDOUGAL USED MADISON GUARANTY TO DIVERT MONEY INTO WHITEWATER IMPROPERLY THERE ALSO HAVE BEEN ALLEGATIONS THAT IN THE MID NINETEEN EIGHTIES MADISON PAID CERTAIN CAMPAIGN AND OTHER DEBTS OF THE CLINTONS WHICH IS A QUESTIONABLE PRACTICE THE THRIFT HAS BEEN DECLARED INSOLVENT AND FEDERAL TAXPAYERS HAVE HAD TO PICK UP AN ESTIMATED TAB OF FIFTY MILLION DOLLARS TO PROTECT DEPOSITORS SOME MEMBERS OF CONGRESS HAVE CRITICIZED THE PRESIDENT FOR ARRANGING TO HAVE THE JUSTICE DEPARTMENT ISSUE A SUBPOENA THAT WOULD PROTECT THE WHITEWATER DOCUMENTS FROM PUBLIC DISSEMINATION THE WHITE HOUSE ALSO HAS BEEN SLOW IN DISCLOSING THE WHEREABOUTS AND DISPOSITION OF THE DOCUMENTS SOME OF WHICH WERE QUIETLY REMOVED FROM THE OFFICE OF DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER AFTER HIS SUICIDE IN JULY THE WHITE HOUSE STAFF WAS DIVIDED OVER HOW TO HANDLE THE ISSUE PRIVATELY MR. STEPHANOPOULOS AND WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY ARGUED FOR BROAD DISCLOSURE AND THE APPOINTMENT OF A SPECIAL COUNSEL IN ORDER TO SILENCE CRITICS BUT SENIOR AIDE BRUCE LINDSEY WITH THE BACKING OF MRS. CLINTON MAINTAINED FOR A LONG TIME THAT THE ISSUE WAS PRIVATE AND THAT THE CLINTONS HADN'T DONE ANYTHING WRONG DISCLOSURE WOULD CREATE MORE NOT FEWER POLITICAL HEADACHES THEY BELIEVED BUT WITH DEMOCRATS SUCH AS SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN OF NEW YORK JOINING IN CALLS FOR A CHANGE OF POLICY THE WHITE HOUSE BOWED TO THE INEVITABLE ADDING TO THE PRESSURE CONGRESSIONAL DEMOCRAT LEADERS TOLD THE WHITE HOUSE THIS WEEK THAT THE DEMOCRATS SIMPLY HAD NO CONVINCING REPLY TO MR. DOLE'S PUBLIC CALL FOR A SPECIAL PROSECUTOR ALTHOUGH WHITE HOUSE AIDES PAINTED THE PRESIDENT AS RELUCTANT TO CHANGE HIS MIND MR. CLINTON HAD ALL BUT MADE UP HIS MIND IN EUROPE ON TUESDAY NIGHT HE CHOSE TO SLEEP ON THE MATTER BEFORE DECIDING TO CALL FOR A SPECIAL COUNSEL SEPARATELY THE FEDERAL DEPOSIT INSURANCE CORPORATION IS INVESTIGATING WHETHER MRS. CLINTON'S FORMER LAW FIRM MISLED THE AGENCY REGARDING THE FIRM'S DEALINGS WITH MADISON GUARANTY THE ASSOCIATED PRESS REPORTED IN NINETEEN EIGHTY NINE THE ROSE LAW FIRM WAS PAID FOUR HUNDRED THOUSAND DOLLARS BY THE F. D. I. C. TO SUE THE AUDITORS OF MADISON GUARANTY ROSE HAD EARLIER REPRESENTED MADISON IN AN EFFORT TO WIN APPROVAL FROM ARKANSAS REGULATORS FOR A RECAPITALIZATION EFFORT FEDERAL CONFLICT OF INTEREST REGULATIONS GENERALLY PROHIBIT CONTRACTORS FROM REPRESENTING THE GOVERNMENT IN THRIFT FAILURE CASES WHERE THE SAME LAW OR ACCOUNTING FIRM REPRESENTS OR ONCE REPRESENTED THE FAILED S. AND L. THE F. D. I. C. PROBE WHICH IS SEPARATE FROM THE JUSTICE DEPARTMENT'S CRIMINAL INQUIRY SEEKS TO LEARN WHETHER THE ROSE LAW FIRM WAS FORTHCOMING ABOUT ITS TIES TO MADISON THE A. P. REPORTED JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE JUDY C. LEWENT SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF MERCK AND COMPANY WAS ELECTED A DIRECTOR OF THIS FOOD AND BEVERAGE COMPANY INCREASING THE BOARD'S SIZE TO FOURTEEN MEMBERS LARGO ENTERTAINMENT AN INDEPENDENT PRODUCTION COMPANY THAT BECAME A SYMBOL OF THE ONE TIME JAPANESE INFATUATION WITH THE MOVIE INDUSTRY HAS LOST ITS CHIEF EXECUTIVE MOVIE PRODUCER LARRY GORDON LARGO'S CHAIRMAN SAID HE WAS LEAVING THE COMPANY TO ACCEPT A PRODUCTION DEAL WITH M. C. A.'S UNIVERSAL PICTURES WHEN LARGO WAS FORMED NEARLY FIVE YEARS AGO MR. GORDON HAD CALLED IT QUOTE MY FIELD OF DREAMS QUOTE BUT LIKE A LONG SUCCESSION OF OTHER HIGHLY PUBLICIZED INDEPENDENT PRODUCTION COMPANIES IN HOLLYWOOD THIS ONE ENDED UP BEING PLOWED UNDER LARGO NAMED FOR MR. GORDON AND ALSO BECAUSE OF ITS MUSICAL MEANING SLOW AND STATELY WAS ANNOUNCED AMID A STORM OF HOOPLA AS THE FIRST MAJOR MANIFESTATION OF THE JAPANESE LOVE AFFAIR WITH HOLLYWOOD J. V. C. SLASH VICTOR COMPANY OF JAPAN OR J. V. C. KICKED IN ONE HUNDRED MILLION DOLLARS TO BANKROLL MR. GORDON THEN ONE OF THE INDUSTRY'S HOTTEST PRODUCERS MR. GORDON WHO HAD FORTY EIGHT HOURS DIE HARD AND FIELD OF DREAMS AMONG HIS CREDITS WAS GOING TO HAVE TOTAL AUTONOMY THE VAUNTED ABILITY TO SAY YES TO MOVIES ALTHOUGH HE HAD ONCE RUN A STUDIO TWENTIETH CENTURY FOX AND WAS KNOWN AS A CONSUMMATE INSIDER MR. GORDON WAS FRUSTRATED WITH STUDIO BUREAUCRACY HE BELIEVED HE HAD COME UP WITH A WAY TO BUCK THE SYSTEM LARGO WAS CONSTRUCTED SO THAT ALTHOUGH IT WOULDN'T DISTRIBUTE ITS OWN MOVIES IT WOULD DO JUST ABOUT EVERYTHING ELSE AND RETAIN OWNERSHIP IF A BLOCKBUSTER HAPPENED A WINDFALL WOULD RESULT AND THE COMPANY COULD GO PUBLIC OR SELL A HANDSOME EQUITY STAKE BUT SEVERAL THINGS HAPPENED TO HOBBLE THE COMPANY ACCORDING TO PEOPLE CLOSE TO THE SITUATION MATSUSHITA ELECTRIC INDUSTRIAL COMPANY WHICH OWNS FIFTY ONE PERCENT OF J. V. C. PAID MORE THAN SIX BILLION DOLLARS FOR M. C. A. INCORPORATED OVERNIGHT LARGO BECAME AN AFTERTHOUGHT SAY SOME OBSERVERS JUST AS THE JAPANESE ECONOMY BEGAN TO COOL AND JAPANESE ENTHUSIASM ABOUT HOLLYWOOD BEGAN TO WANE CREDIT LYONNAIS AND OTHER BANKS WERE BEING RAVAGED BY BAD LOANS TO INDEPENDENT PRODUCERS LARGO WAS ABLE TO ATTRACT A SEVENTY FIVE MILLION DOLLAR CREDIT FACILITY FROM A GROUP OF BANKS LED BY CHEMICAL BANK A UNIT OF CHEMICAL BANKING CORPORATION BUT FUNDS STILL WERE TIGHT MEANWHILE MR. GORDON WAS MAKING MOVIES THAT WEREN'T TAKING OFF NOT AS MANY AS THE FIVE OR SIX A YEAR THAT HAD BEEN PROJECTED BUT SELECTED MIDDLE BUDGET MOVIES LIKE JUDGMENT NIGHT POINT BREAK THE SUPER AND UNLAWFUL ENTRY LARGO'S STRUCTURE CALLED FOR IT TO PAY MUCH OF ITS OWN RELEASING COSTS DEVELOPMENT COSTS OVERSEAS SALES FORCE AND OVERHEAD EVEN A STRING OF MODESTLY BUDGETED FILMS THAT DIDN'T WORK COST A LOT WHAT PROFITS THERE WERE WENT TO THE STUDIOS WHO DISTRIBUTED THE FILMS FURTHERMORE MR. GORDON WAS MORE INTERESTED AND MORE SKILLED AT PUTTING TOGETHER MOVIE PROJECTS THAN IN RUNNING A COMPANY AND SUPERVISING A MULTITUDE OF THEM ASSOCIATES SAY THE MAN WHO WANTED TO SAY YES JUST WASN'T SAYING IT OFTEN ENOUGH SAY SOME INDIVIDUALS CLOSE TO THE SITUATION NONE OF THE FILMS TOOK OFF AND MR. GORDON BEGAN FOCUSING ON PUTTING TOGETHER TWO POTENTIAL BIG TICKET FRANCHISE MOVIES THAT HE BELIEVED COULD TRANSFORM THE COMPANY THEY WERE QUOTE WATERWORLD QUOTE A FUTURISTIC ADVENTURE WITH KEVIN COSTNER AND QUOTE DIE HARD THREE QUOTE WITH BRUCE WILLIS THE LATTER HAD A PROBLEM WHEN ITS SCRIPT TERRORISTS ON A SHIP WAS BEATEN TO THE SCREEN BY ANOTHER MOVIE UNDER SIEGE AND A NEW CONCEPT HAD TO BE FOUND BUT THE MAIN PROBLEM WAS THAT THE FILMS WOULD COST ANYWHERE FROM FIFTY MILLION DOLLARS TO EIGHTY MILLION DOLLARS AND J. V. C. WOULDN'T PAY FOR THEM ASSOCIATES SAY J. V. C. OFFICIALS WEREN'T AVAILABLE FOR COMMENT BOTH MOVIES NOW ARE BEING MADE ELSEWHERE AS A RESULT LAST YEAR MR. GORDON TOLD FRIENDS HE WAS FRUSTRATED UNIVERSAL WHERE HE MUST BRING HIS MOVIE PROJECTS FIRST WAS A LOGICAL PLACE FOR HIM TO GO THE STUDIO HAS RELEASED SEVERAL LARGO MOVIES INCLUDING THE COMING THE GETAWAY AND TIMECOP AND ITS CHIEF THOMAS POLLOCK IS MR. GORDON'S FORMER ATTORNEY LARGO WHICH HAS FORTY EMPLOYEES WILL CONTINUE TO EXIST SAYS MR. GORDON WE STILL HAVE ASSETS AND TWO MOVIES TO RELEASE SAYS MR. GORDON I DON'T CONSIDER IT A FAILURE BRUCE L. A. CARTER FIFTY YEARS OLD WAS ELECTED A DIRECTOR OF THIS BIOTECHNOLOGY CONCERN INCREASING THE BOARD'S SIZE TO SIX MEMBERS DOCTOR CARTER IS PRESIDENT OF ZYMOGENETICS INCORPORATED A SEATTLE BIOTECH COMPANY AND CHIEF SCIENTIFIC OFFICER OF THE HEALTH CARE GROUP OF DENMARK BASED NOVO NORDISK AS IN AN EFFORT TO BROADEN ITS CORPORATE CARD BUSINESS AMERICAN EXPRESS COMPANY INTRODUCED A CHARGE CARD THAT COMPANIES CAN USE TO PURCHASE OFFICE SUPPLIES AND EQUIPMENT ALTHOUGH AMERICAN EXPRESS ALREADY PROVIDES MOST OF THE NATION'S LARGEST CORPORATIONS WITH CARDS FOR TRAVEL AND ENTERTAINMENT EXPENSES THE POTENTIAL FOR THE QUOTE CORPORATE PURCHASING CARD QUOTE IS EVEN GREATER TRAVEL AND ENTERTAINMENT COSTS TOTAL ABOUT ONE HUNDRED TEN BILLION DOLLARS A YEAR WHILE PURCHASES OF SMALL TICKET OFFICE SUPPLIES ADD UP TO TWO HUNDRED FIFTY BILLION DOLLARS BUT THOMAS FACCIOLA AN ANALYST AT S. G. WARBURG SAID HE DOESN'T EXPECT AMERICAN EXPRESS TO REALIZE ANY PROFIT FROM THE NEW CARD BEFORE NINETEEN NINETY FIVE MR. FACCIOLA ESTIMATED THAT THE INTRODUCTION OF THE CARD WILL COST ABOUT FIFTY MILLION DOLLARS THE NEW CARD INTRODUCED YESTERDAY ISN'T THE FIRST EFFORT BY A CARD ISSUER TO TAP THE OFFICE SUPPLY BUSINESS FIRST BANK SYSTEM INCORPORATED IN MINNEAPOLIS IS ALREADY PROCESSING FIFTY MILLION DOLLARS OF CORPORATE PURCHASES EACH MONTH THROUGH A SIMILAR PROGRAM USING VISA CARDS AMERICAN EXPRESS SAID IT WILL BE ABLE TO CAPITALIZE ON EXISTING CORPORATE RELATIONSHIPS ROGER BALLOU PRESIDENT OF AMERICAN EXPRESS'S TRAVEL SERVICES GROUP WHICH HANDLES CORPORATE ACCOUNTS ALSO NOTED THAT WHILE BANK ISSUERS OF OTHER CREDIT CARDS MUST COORDINATE THEIR EFFORTS WITH MERCHANT BANKS AND OUTSIDE PROCESSORS AMERICAN EXPRESS WILL DEAL DIRECTLY WITH CORPORATE CUSTOMERS HE SUGGESTED THOUGH THAT AMERICAN EXPRESS MIGHT ALSO ISSUE THE NEW PURCHASING CARD THROUGH BANKS ALTHOUGH A SPOKESWOMAN LATER SAID THAT THE COMPANY HAS HAD ONLY PRELIMINARY DISCUSSIONS WITH SOME BANKS ABOUT SUCH AN ARRANGEMENT THE CLOCK ON THE WALL OF THE HONOLULU FISH AUCTION NEXT TO THE DOCKS AT KEWALO BASIN SAYS SEVEN FORTY FIVE A. M. MOST OF THE FIFTY TONS OF FISH UNLOADED DURING THE NIGHT SWEET FLESHED SNAPPERS GREEN AND GOLD MAHI MAHI BIGEYE AND SKIPJACK TUNA AMONG THEM HAVE ALREADY BEEN AUCTIONED AND CARTED AWAY FOR DELIVERY WHAT REMAINS UNDER THE FLUORESCENT LIGHTS ON THE WET CONCRETE FLOOR ARE FOUR LARGE PALLETS STACKED HIGH WITH THE NEW STAR OF HAWAII'S WATERS GLISTENING MUSCULAR SILVER SKINNED SWORDFISH KNOWN IN HAWAII BY THEIR JAPANESE NAME SHUTOME THEY WEIGH ONE HUNDRED TO TWO HUNDRED POUNDS EACH CLAD IN BLUE OVERALLS BROOKS TAKANAKA ASSISTANT GENERAL MANAGER OF THE UNITED FISHING AGENCY A PRIVATE AUCTION HOUSE IS MANNING HIS CELLULAR PHONE HE IS IN TOUCH WITH A PAIR OF BIG SWORDFISH BUYERS OCEAN STAR OF SAN DIEGO AND PHILLIPS SEAFOOD OF POINT PLEASANT N. J. ALONG THE SHED WALL ANOTHER SEVEN BUYERS SOME WEARING KNEE HIGH WELLINGTON BOOTS ANTENNAS RAISED ON THEIR OWN PORTABLE PHONES ARE TALKING TO CLIENTS IN HAWAII THE U. S. MAINLAND AND POSSIBLY JAPAN AUCTIONEER WAYNE HITASHI IN JEANS A HAWAIIAN SHIRT AND SNEAKERS HAS BEEN TAKING BIDS PALLET BY PALLET USING A BLACK MAGIC MARKER TO WRITE PRICES ON A LARGE WHITE PLASTIC BOARD HE IS AT THE LAST PALLET THE FIRST THREE HAVE SOLD FOR PRICES RANGING FROM FOUR DOLLARS AND FIVE CENTS TO FOUR DOLLARS AND FORTY CENTS A POUND MR. TAKANAKA IS COMMUNICATING THE RESULTS OF THE BIDDING TO HIS PROSPECTIVE PURCHASERS IN SAN DIEGO AND POINT PLEASANT THE PRICE FOR THE SWORDFISH ON THE FINAL PALLET HAS REACHED THREE DOLLARS AND THIRTY CENTS A POUND QUOTE YOU EMBARRASSED YOURSELF WITH YOUR OPENER QUOTE MR. TAKANAKA TEASES ONE IT'S JUST GONE TO THREE DOLLARS AND SIXTY CENTS NOW IT'S THREE DOLLARS AND SEVENTY FIVE CENTS IT'S MOVING FAST BACK IN A MINUTE HE HITS A BUTTON ON THE PHONE AND AUTOMATICALLY CONNECTS WITH THE SECOND COMPANY ACROSS THE FLOOR A BUYER ALONG THE WALL SIGNALS TO THE AUCTIONEER IT'S FLOWING FAST TODAY MR. TAKANAKA SAYS IT'S AT THREE DOLLARS AND NINETY CENTS HE CLICKS OFF WHAT A JOB SAYS MR. TAKANAKA QUOTE IT'S LIKE PLAYING POKER EVERY DAY FOR A LIVING HOW DID WE EVER DO BUSINESS WITHOUT CELLULAR PHONES IT IS EIGHT A. M. THE PRICE HAS GONE TO FOUR DOLLARS A POUND ANYBODY ELSE ASKS MR. HITASHI MY CLIENT IS MOVING FROM ONE BUILDING TO ANOTHER SAYS ONE OF THE BUYERS ALONG THE WALL WE'VE HEARD THAT BEFORE SAYS HITASHI LET'S GET OUT EARLY TODAY SUDDENLY THERE IS A FLURRY OF LAST MINUTE BIDDING THE PRICE RISES QUICKLY TO FOUR DOLLARS AND TWENTY FIVE CENTS A POUND BID BY MR. TAKANAKA FOR PHILLIPS QUOTE ANY MORE QUOTE ASKS MR. HITASHI LOOKING AROUND THE ROOM O. K. THAT'S A WRAP WORKERS BEGIN TO MOVE THE PALLETS MUCH OF THE CATCH IS HEADING TO THE MAINLAND IN ICED AIR FREIGHT BOXES UNTIL ABOUT FIVE YEARS AGO SWORDFISH WERE A RARITY AT THE HONOLULU AUCTION TODAY NOT ONLY ARE THEY THE AUCTION'S TOP MONEY SPINNER BUT HONOLULU HAS BECOME THE LEADING PORT FOR SWORDFISH IN THE U. S. AND THE CHANGE IS ALL THE WORK OF A SINGLE FISHERMAN NAMED BRUCE MOURNIER HE IS CREDITED WITH INTRODUCING NEW TECHNOLOGY FOR ATTRACTING FISH A FLUORESCENT LIGHT STICK THAT GLOWS FOR TWELVE TO FOURTEEN HOURS AND ZEROING IN ON THE EXACT TRAVEL ROUTES OF PACIFIC SWORDFISH A MAVERICK BOAT CAPTAIN AND GRADUATE ENGINEER MOURNIER PORED OVER JAPANESE FISHING STATISTICS UNTIL HE SPOTTED A DISTINCTIVE MOVEMENT PATTERN FOR SWORDFISH ABOUT ONE THOUSAND TWO HUNDRED MILES WEST OF HAWAII IN JUNE NINETEEN EIGHTY EIGHT AMID MUCH SCOFFING FROM FELLOW LONG LINERS MR. MOURNIER MADE A DECISION TO USE HIS BOAT THE MAGIC DRAGON TO CONCENTRATE ON SWORDFISH THE SCOFFING STOPPED WHEN HE BEGAN RETURNING WITH GROANING BOATLOADS OF BROADBILLS FROM HIS THREE WEEK TRIPS WORD OF MR. MOURNIER'S SUCCESS SPREAD LIKE WILDFIRE IT WAS LIKE SAYING GOLD DISCOVERED IN CALIFORNIA SAYS MR. TAKANAKA DOZENS OF LOCAL BOATS IMMEDIATELY SWITCHED TO SWORDFISH AND OTHERS CAME OVER FROM THE WEST COAST SEVERAL VIETNAMESE FISHERMEN FROM THE GULF COAST FLEEING FIERCE COMPETITION IN THE SHRIMPING AND TUNA INDUSTRIES WERE SOON IN HAWAII HAULING IN IMPRESSIVE CATCHES BIG BOATS FROM THE EAST COAST WHERE THE SWORDFISH CATCH IS IN DECLINE HAVE EVEN JOINED THE FRAY SWORDFISH LANDINGS IN HONOLULU HAVE GONE FROM ALMOST NOTHING BEFORE MR. MOURNIER BEGAN PURSUING SWORDFISH IN NINETEEN EIGHTY EIGHT TO AN ESTIMATED ELEVEN MILLION POUNDS ANNUALLY TODAY MR. MOURNIER HIMSELF IS CURRENTLY HUNTING PACIFIC BROADBILLS OUT OF THE PORTS OF LOS ANGELES AND SAN FRANCISCO BECAUSE THOSE CITIES ARE CLOSER TO FREQUENT AIR TRANSPORTATION SOME OBSERVERS THINK MR. MOURNIER'S MOVE MAY PORTEND A SHIFT BY SOME BOATS TO WEST COAST PORTS SUCH AS SEATTLE WHICH IS AS CLOSE TO THE NORTHERN END OF SWORDFISH RUNS AS IS HONOLULU BUT IN HAWAII THERE IS STILL STIFF COMPETITION FOR THE SWORDFISH LICENSES ISSUED BY THE WESTERN PACIFIC REGIONAL FISHERIES COUNCIL THE QUASIFEDERAL AGENCY RESPONSIBLE UNDER THE NINETEEN SEVENTY SIX MAGNUSON ACT FOR PREVENTING OVERFISHING IN THE AREA CURRENTLY SOME SIXTY HONOLULU BASED BOATS ARE GOING SPECIFICALLY AFTER SWORDFISH HAWAII'S CHEFS LONG KNOWN FOR THE EXCELLENCE OF THEIR FISH PREPARATIONS HAVE BEEN QUICK TO TAKE ADVANTAGE OF THE SWORDFISH BOOM DOMINIQUE JAMAIN THE LOIRE VALLEY BORN CHEF AT THE KAHALA HILTON IN THE SUBURBS OF HONOLULU WHERE PRESIDENT CLINTON STAYED ON HIS HAWAIIAN VISIT IN JULY SEARS THE SWORDFISH TOPS IT WITH A CRUST OF CRABMEAT AND SESAME SEEDS AND SERVES IT WITH A WARM VINAIGRETTE MADE WITH MIRIN AND CILANTRO GEORGE MAVROTHALASSITIS A NATIVE OF MARSEILLES WHO TRAINED AT THE THREE STAR ARCHESTRATE RESTAURANT IN PARIS AND NOW IS EXECUTIVE CHEF AT THE HALEKULANI HOTEL IN WAIKIKI COATS THE FIRM FLESH OF THE SHUTOME IN HERBS GRILLS IT AND SERVES IT WITH A LIGHT CURRY SAUCE AT THE HOTEL'S FAMED LA MER RESTAURANT PHILIPPE PADOVANI THE MUCH RESPECTED EXECUTIVE CHEF AT THE OPULENT MANELE BAY HOTEL ON THE ISLAND OF LANAI BROILS THE FISH AND SERVES IT WITH A SEA URCHIN SAUCE HE ACCOMPANIES THE DISH WITH BEETS SAUTEED IN OLIVE OIL AND FRESH CHERVIL ANOTHER NAME APPEARING MORE FREQUENTLY ON HAWAIIAN MENUS IS THE OPAH OR MOONFISH A THICK BODIED FISH BRIGHT RED WITH WHITE SPOTS AND SO ROUND IT RESEMBLES A GARISH SEWER COVER WITH MOUTH AND TAIL ATTACHED THE OPAH WEIGHS UP TO TWO HUNDRED POUNDS OPAH IS BEING LANDED IN HONOLULU IN INCREASING NUMBERS MAINLY AS A BYPRODUCT OF THE LONGER RANGE AND DEEPER FISHING CAPABILITIES OF HAWAII'S TUNA FISHING FLEET MR. TAKANAKA OF THE UNITED FISHING AGENCY WHOSE FATHER AND GRANDFATHER WERE FISHERMEN REMEMBERS THAT AN OPAH CAUGHT BY MISTAKE WHILE FISHING FOR ANOTHER SPECIES WOULD OCCASIONALLY APPEAR ON THE TABLE AT HIS HOME BROILED OR AS SASHIMI IF THE FISH WAS NOT CONSUMED AT HOME IT WAS GIVEN AWAY AS A GIFT BUT THERE WAS NO COMMERCIAL MARKET FOR IT NOW INCREASED AVAILABILITY HAS INSPIRED CHEFS TO CREATE RECIPES THEY LIKE PREPARING OPAH BECAUSE ITS JUICY OILY FLESH STANDS UP SO WELL TO HEAT IT IS ALMOST IMPOSSIBLE TO OVERCOOK SAYS CHEF YVES MENORET OF HONOLULU'S HILTON HAWAIIAN VILLAGE MENORET USES OPAH FOR BANQUETS AND AS AN OCCASIONAL SPECIAL AT THE HOTEL'S BALI BY THE SEA RESTAURANT DAY IN AND DAY OUT THE BEST PLACE IN HONOLULU FOR OPAH MAY BE HORATIO'S A SPRAWLING FISH RESTAURANT AT A SHOPPING COMPLEX CALLED WARD'S WAREHOUSE FREQUENTED BY PEOPLE WHO WORK IN THE NEARBY FINANCIAL DISTRICT CHEF MICHAEL BRYAN GRILLS THE OPAH OVER KIAWE MESQUITE AND BASTES IT WITH A BLACK BEAN CHILI BUTTER THE RICH SEA TASTE OF THE FISH EASILY HANDLES THE PUNGENT BUTTER OPAH HAS ALSO ARRIVED ON THE MAINLAND IT IS SERVED AT THE LUXURIOUS GRAND BAY HOTEL IN MIAMI WHERE IT IS SEARED AND SERVED WITH A SAKE BUTTER SAUCE OVER ARUGULA HOW DID THE MOONFISH GET TO FLORIDA IT WAS INTRODUCED BY A CHEF FROM HAWAII MR. MONAGHAN IS A BROOKLYN BASED FREELANCER WHO WRITES ABOUT FOOD AND TRAVEL I. D. B. COMMUNICATIONS GROUP INCORPORATED CHANGED THE PAYMENT DATE FOR ITS FIVE PERCENT COMMON STOCK DIVIDEND AND THREE FOR ONE SPLIT TO FEBRUARY FOURTH FROM FEB TWENTY EIGHT LOMAS FINANCIAL CORPORATION SAID IT PLANS TO CUT ITS WORK FORCE BY ONE HUNDRED EIGHTY PEOPLE OR SEVEN POINT EIGHT PERCENT BY THE END OF THE MONTH AS PART OF A COST CUTTING MOVE THE DALLAS MORTGAGE SERVICING CONCERN SAID THE CUTS WILL RESULT IN A CHARGE OF ABOUT FIVE MILLION DOLLARS FOR THE FISCAL SECOND QUARTER ENDED DECEMBER THIRTY FIRST NINETEEN NINETY THREE LOMAS HAD NET INCOME OF THREE POINT THREE MILLION DOLLARS OR SIXTEEN CENTS A SHARE IN THE YEAR EARLIER PERIOD LOMAS SAID THE JOB CUTS PRIMARILY IN DALLAS WILL SAVE THE COMPANY EIGHT MILLION DOLLARS A YEAR IN OPERATING EXPENSES LOMAS HAS TWO THOUSAND THREE HUNDRED EMPLOYEES TOKYO STOCKS ENDED A VOLATILE SESSION WEDNESDAY WITH A ONE POINT SEVEN PERCENT GAIN THE BOURSE'S SIXTH CLIMB IN A ROW BUT LONDON PRICES TUMBLED ONE POINT TWO PERCENT PARTLY ON BRITISH UNEMPLOYMENT DATA THAT HURT THE INTEREST RATE OUTLOOK AND FRANKFURT SHARES ENDED BROADLY LOWER AS INVESTORS BEGAN SNIFFING FOR BETTER DEALS IN OTHER EUROPEAN MARKETS WHERE PROFIT TAKING WAS PREVALENT ACROSS ASIA SHARES CONTINUED TO BE BATTERED ATTRIBUTED TO SPECULATIVE INVESTORS' GROWING ANXIETIES FOLLOWING A STELLAR NINETEEN NINETY THREE RATHER THAN TO ANY SUDDEN CHANGE IN THE REGION'S CORPORATE OUTLOOK HONG KONG STOCKS PLUMMETED FOUR PERCENT AS THE MARKET'S SLUMP CONTINUED FOR A SECOND DAY EQUITIES SLID TWO POINT THREE PERCENT IN MANILA THREE POINT SEVEN PERCENT IN SINGAPORE SIX POINT FOUR PERCENT IN KUALA LUMPUR AND SEVEN POINT THREE PERCENT IN BANGKOK WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED TWELVE POINT SEVEN ONE DOWN ZERO POINT TWO ZERO REFLECTING INCREASES IN MARKETS IN THE AMERICAS AND DECLINES IN EUROPEAN AND ASIA SLASH PACIFIC MARKETS FISHING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT SEVENTY FOUR POINT FOUR SIX UP THREE POINT THREE THREE OR FOUR POINT SEVEN PERCENT WITH NIPPON SUISAN KAISHA LIMITED OF JAPAN POSTING A SEVEN POINT SEVEN PERCENT GAIN IN ITS LOCAL CURRENCY PLANTATION STOCKS TRAILED AGAIN AT TWO HUNDRED THIRTY EIGHT POINT OH TWO DOWN THIRTY FOUR POINT THREE ONE OR THIRTEEN PERCENT WITH BATU KAWAN B. H. D. OF MALAYSIA SLIDING FIFTEEN PERCENT IN LOCAL CURRENCY IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH ROSE FORTY ONE POINT EIGHT ONE POINTS TUESDAY SURGED THREE HUNDRED EIGHT POINT SIX THREE TO EIGHTEEN THOUSAND SEVEN HUNDRED NINETY THREE POINT EIGHT EIGHT AS A BURST OF ARBITRAGE BUYING TO TAKE ADVANTAGE OF OVERSOLD POSITIONS IN THE FINAL HALF HOUR SPARKED A LATE RALLY THE NIKKEI'S FINISH NEAR THE DAY'S PEAKS WAS THE HIGHEST LEVEL SINCE NOVEMBER FOURTH IN TRADING THURSDAY THE NIKKEI INDEX FELL ONE HUNDRED FORTY FIVE POINT TWO TWO POINTS TO CLOSE THE MORNING SESSION AT EIGHTEEN THOUSAND SIX HUNDRED FORTY EIGHT POINT SIX SIX WEDNESDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT FOUR HUNDRED TEN MILLION SHARES DOWN FROM FOUR HUNDRED FORTY ONE POINT TWO MILLION SHARES A DAY EARLIER ADVANCING ISSUES OUTPACED DECLINERS SEVEN HUNDRED NINETY TWO TO TWO HUNDRED THIRTY FOUR THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH SLIPPED ZERO POINT FOUR FIVE POINT TUESDAY GAINED TEN POINT FIVE NINE TO ONE THOUSAND FIVE HUNDRED ELEVEN POINT FOUR THREE THE CLIMB OVERCOMING TWO SHARP DROPS DURING THE SESSION CAME AFTER THE TOKYO MARKET SHOOK OFF SOME WORRIES ABOUT DELAYS ON JAPANESE GOVERNMENT POLITICAL REFORM MEASURES SENTIMENT ALSO WAS SUPPORTED BY NEWS REPORTS THAT THE GOVERNMENT WILL PUSH TO USE PUBLIC FUNDS TO BUY LAND IN AN EFFORT TO INCREASE LIQUIDITY IN THE STAGNANT REAL ESTATE MARKET AND THAT IT MAY PROPOSE A BIGGER THAN EXPECTED INCOME TAX CUT TO HELP THE ECONOMY RECOVER IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX TUMBLED FORTY ONE POINT EIGHT POINTS TO THREE THOUSAND THREE HUNDRED SEVENTY TWO POINT OH WHICH ALSO WAS THE INTRADAY LOW THE F. T. THIRTY STOCK INDEX PLUNGED THIRTY POINT SIX POINTS OR ONE POINT TWO PERCENT TO TWO THOUSAND FIVE HUNDRED SEVENTY FOUR POINT TWO VOLUME WAS EIGHT HUNDRED EIGHT POINT NINE MILLION SHARES COMPARED WITH EIGHT HUNDRED EIGHTY TWO POINT EIGHT MILLION SHARES A DAY EARLIER THE BRITISH EMPLOYMENT FIGURES WHICH SHOWED THAT THE NUMBER OF JOBLESS SHRANK MARKEDLY MORE THAN EXPECTED LAST MONTH SUGGESTED THAT A LENDING RATE CUT WILL BE DELAYED SOME BEARS EVEN BELIEVED THAT RATES HAVE BOTTOMED AND THAT THE NEXT RATE MOVE WILL BE UP BUT OTHERS SAID FAVORABLE INFLATION AND EUROPEAN RATE REDUCTIONS IN COMING MONTHS WILL ALLOW BRITAIN TO REDUCE ITS RATES YESTERDAY A FEW LARGE SELL ORDERS GUIDED BY COMPUTER PROGRAMS FROM BRITISH FUNDS TRIGGERED THE ROUT WITH PRICES DROPPING SHARPLY ACROSS THE SPECTRUM IN FRANKFURT THE D. A. X. THIRTY STOCK INDEX DROPPED NINETEEN POINT FIVE SEVEN POINTS TO TWO THOUSAND TWO HUNDRED NINE POINT ONE EIGHT NEAR THE DAY'S LOWS ON LIGHT VOLUME THE MARKET OPENED STRONGLY BUT A LACK OF BUYERS AND WORRIES RELATED TO GERMAN CORPORATE ACTIVITY PUSHED PRICES BROADLY LOWER GERMAN MUTUAL FUNDS HAVE BEEN HOLDING BACK ON COMMITTING CASH TO FRANKFURT SHARES RECENTLY AHEAD OF SEVERAL COMING STOCKRIGHTS ISSUES AND FOREIGN INVESTORS WERE TAKING CLOSER LOOKS AT THE LONDON AND PARIS MARKETS IN PARIS SHARES RETREATED ACROSS THE BOARD IN FAIRLY ACTIVE TRADING AS INVESTORS TOOK PROFITS FOLLOWING THE MARKET'S RECENT RECORD BREAKING ADVANCE WHILE POOR CORPORATE EARNINGS PROSPECTS DEPRESSED SENTIMENT IN AMSTERDAM STOCKS SKIDDED ONE POINT THREE PERCENT ON PROFIT TAKING INSPIRED BY LOWER PRICES ON OTHER BOURSES LOSSES WERE RECORDED IN ALL SECTORS WITH FOOD AND BEVERAGE COMPANIES AND PUBLISHERS HIT HARD IN THE SELL OFF IN MILAN EQUITIES FINISHED FLAT TO SLIGHTLY LOWER AS PROFITS WERE GRABBED FOLLOWING THE PREVIOUS DAY'S ADVANCE IN MADRID AND STOCKHOLM BOTH OF WHICH POSTED RECORD HIGHS THE PREVIOUS DAY PRICES FELL AS PROFITS WERE SNAGGED A FACTOR THAT ALSO DRAGGED STOCKS DOWN IN ZURICH AND LEFT PRICES MIXED IN BRUSSELS IN MEXICO CITY STOCKS RALLIED FROM INTRADAY LOWS TO END SLIGHTLY HIGHER AFTER PRESIDENT CARLOS SALINAS PROMISED A UNILATERAL CEASE FIRE WITH REBELS IN CHIAPAS AND PARDONS FOR THOSE WHO LAY DOWN THEIR WEAPONS THE INSURGENTS DIDN'T REPLY WHICH SPURRED A LATE SELL OFF IN SOME STOCKS THE MARKET ALSO FOUND SUPPORT FROM AN UNEXPECTED DROP IN MEXICAN INTEREST RATES IN HONG KONG STOCKS DIVED AS OVERSEAS FUND MANAGERS CONTINUED TO LIQUIDATE HOLDINGS THE BENCHMARK INDEX SKIDDED FIVE POINT EIGHT PERCENT IN THE PAST TWO SESSIONS AFTER A THREE POINT THREE PERCENT REBOUND MONDAY FROM THE REVERSAL OF A RALLY THAT BEGAN LAST SEPTEMBER STOCKS ALSO WERE BATTERED WEDNESDAY BY SPECULATION THAT HONG KONG BANKS WILL TIGHTEN MORTGAGE POLICIES FURTHER BECAUSE OF SPIRALING RESIDENTIAL PROPERTY PRICES PROPERTY STOCKS TOOK THE WORST BEATING LOSING FIVE PERCENT AND LEADING THE MARKET DOWN COMMERCIAL AND INDUSTRIAL ISSUES SANK FOUR POINT FOUR PERCENT AND UTILITIES LOST FOUR POINT ONE PERCENT BANKS WERE HURT THE LEAST EVEN WITH THEIR ONE POINT NINE PERCENT DECLINE THE MARKET ALSO WAS PRESSURED BY SINO U. S. TRADE TALKS ON TEXTILES IN SINGAPORE SHARES WERE KNOCKED DOWN IN TURBULENT DEALINGS FROM THE OPENING BELL AND AT ONE POINT THE MARKET HAD COLLAPSED SIX POINT TWO PERCENT INSTITUTIONAL AND RETAIL INVESTORS SOLD ISSUES ACROSS THE BOARD JITTERS CONTINUED BECAUSE OF INTEREST RATE FEARS AS WELL AS WARNINGS THAT THE MARKET WAS OVERHEATED SELLING BY FUNDS TOPPLED BLUE CHIPS AND SMALLER STOCKS WERE BASHED EVEN WORSE AS SOME SELLING WAS FORCED BY MARGIN CALLS FOR ISSUES BOUGHT ON CREDIT IN KUALA LUMPUR THE PLUNGE IN ACTIVE TRADING DEEPENED LOSSES FROM THE PREVIOUS DAY'S FIVE POINT NINE PERCENT SLIDE THOUGH STOCKS DID BOUNCE UP TO RECOVER FROM INTRADAY LOWS HELPED BY BLUE CHIPS AND BUYING BY SEVERAL GOVERNMENT CONTROLLED INSTITUTIONAL INVESTORS THE MALAYSIAN MARKET HAS TAKEN A NINETEEN PERCENT DRUBBING SINCE LAST THURSDAY AND IN BANGKOK THE MARKET'S TUMBLE WAS ACROSS THE BOARD AS EVERY SUBINDEX DECLINED IN MANILA THE MARKET CORRECTED FOR THE FOURTH STRAIGHT SESSION ON CONTINUED PROFITTAKING IN SYDNEY STOCKS DECLINED AS INVESTORS TOOK PROFITS IN A CONSOLIDATION AHEAD OF NEXT MONTH'S POSTING OF CORPORATE EARNINGS RESULTS IN TAIPEI SHARES EASED AFFECTED BY TIGHTENED LIQUIDITY AND TAIWAN'S WORST DROUGHT IN FOUR DECADES IN SEOUL THE MAIN INDEX ROSE BUT THE BROADER MARKET WEAKENED AS DECLINING ISSUES OUTNUMBERED GAINING ISSUES 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END AS FEDERATED DEPARTMENT STORES INCORPORATED JOCKEYS TO MERGE WITH R. H. MACY AND COMPANY IN AN ATTEMPT TO CREATE THE NATION'S LARGEST DEPARTMENT STORE CHAIN APPAREL VENDORS ARE SCRAMBLING TO REFASHION THEIR BUSINESSES TO SUPPLY THE MEGASTORES THAT HAVE COME TO DOMINATE THE INDUSTRY THE MERGERS AND CLOSINGS OF DEPARTMENT STORES IN RECENT YEARS HAVE CONCENTRATED POWER IN THE HANDS OF A FEW MAJOR PLAYERS INCLUDING MAY DEPARTMENT STORES COMPANY DILLARD DEPARTMENT STORES INCORPORATED AND DAYTON HUDSON CORPORATION WHO NOW HOLD MORE SWAY THAN EVER OVER MANUFACTURERS APPAREL ACCOUNTS FOR MORE THAN SIXTY PERCENT OF ALL DEPARTMENT STORE MERCHANDISE AND FOR SUPPLIERS STAYING VIABLE HAS MEANT SHORTENING THE TIME IT TAKES TO MAKE AND DELIVER MERCHANDISE CUTTING COSTS AND IN SOME CASES OPENING THEIR OWN OUTLET STORES QUOTE RETAILERS HAVE CONSOLIDATED IN ORDER TO BRING COSTS DOWN SO THAT THEY CAN PASS THOSE SAVINGS ON TO CONSUMERS QUOTE SAYS MARIE BENINATI DIRECTOR OF RETAIL MARKET STRATEGIES AT KURT SALMON ASSOCIATES APPAREL INDUSTRY CONSULTANTS AS A RESULT SHE SAYS APPAREL MAKERS HAVE HAD TO BE MORE RESPONSIVE BY SHORTENING THEIR MANUFACTURING CYCLES TO GET THE RIGHT MERCHANDISE TO THE STORES AS FAST AS POSSIBLE IN CONTRAST TO THE HEADIER NINETEEN EIGHTIES WHEN DEPARTMENT STORES TOUTED HIGH END MERCHANDISE THE RETAILERS ARE NOW EMPHASIZING MORE MODERATELY PRICED GOODS TO COMPETE WITH DISCOUNT AND SPECIALTY STORES THE TREND TOWARD VALUE BRANDS WHICH BEGAN IN THE LATE NINETEEN EIGHTIES HAS FAVORED SUCH APPAREL MARKETERS AS LIZ CLAIBORNE INCORPORATED JONES APPAREL GROUP INCORPORATED AND TOMMY HILFIGER CORPORATION ALL OF WHICH HAVE GAINED DEPARTMENT STORE MARKET SHARE AT THE EXPENSE OF SMALLER SUPPLIERS FASHION HOUSES WITH SALES UNDER TEN MILLION DOLLARS ARE BEING SQUEEZED OUT BECAUSE THEY CAN'T DELIVER THE VOLUME AND HIGHER PROFIT MARGINS THAT THE BIG CHAINS NOW REQUIRE AND WITHOUT SUFFICIENT ORDERS MORE APPAREL MAKERS HAVE BEEN LEFT IN THE COLD IN NINETEEN NINETY TWO FIVE HUNDRED SIXTY TWO APPAREL AND TEXTILE FIRMS WENT OUT OF BUSINESS UP FROM THREE HUNDRED THIRTY EIGHT BUSINESS FAILURES IN NINETEEN EIGHTY FIVE ACCORDING TO DUN AND BRADSTREET CORPORATION A RECENT KURT SALMON SURVEY OF DEPARTMENT STORES SHOWED THAT ABOUT FIFTY FIVE PERCENT HAD EITHER TRIMMED THE NUMBER OF SUPPLIERS THEY DO BUSINESS WITH OR PLANNED TO DO SO DURING THE NINETEEN EIGHTIES WHEN APPAREL SALES ZOOMED AND DEPARTMENT STORES EXPANDED APPAREL MAKERS LIVED A FAT LIFE SAYS TODD SLATER A RETAIL AND APPAREL ANALYST AT U. B. S. SECURITIES HE ADDS THAT AS CONSUMER DEMAND HAS WANED STORES HAVE GOTTEN LEANER AND TOUGHER THEY CAN NO LONGER TIE UP THEIR ASSETS IN SLOW TURNING FRINGE MERCHANDISE FOR INSTANCE TO BURNISH ITS EXCLUSIVE IMAGE THE FORTY NINE STORE SAKS FIFTH AVENUE CHAIN HAS BEEN PHASING OUT LINES CARRIED BY MANY OF ITS COMPETITORS IN THE PAST YEAR SAKS DROPPED A NUMBER OF BRANDS INCLUDING LIZ CLAIBORNE WOMEN'S SPORTSWEAR AND CAROLE LITTLE WOMEN'S APPAREL BECAUSE THEY PREFER TO DO BUSINESS WITH A FEW BIG CHAINS RATHER THAN CHASE A SHRINKING NUMBER OF INDEPENDENT SPECIALTY STORES MOST APPAREL MAKERS NOW VIE FOR POSITIONS ON A DEPARTMENT STORE'S MATRIX OR MOST FAVORED VENDOR LIST THIS IN EFFECT MAKES THEM THE INFORMAL PARTNERS OF THEIR DEPARTMENT STORE CUSTOMERS AS STORES CENTRALIZE AND STREAMLINE THEIR BUYING OPERATIONS BUT FORGING STRONG TIES WITH A FEW BIG STORES IS OUT OF THE QUESTION FOR MOST SMALL VENDORS AND GIVEN THE WHIMS OF THE FASHION BUSINESS IT CARRIES RISKS EVEN FOR THE CHOSEN ACCORDING TO MARY ANN WHEATON PRESIDENT OF WHEATON INTERNATIONAL WHICH MANAGES DESIGNER BYRON LARS QUOTE YOU HAVE TO BE CAREFUL THAT YOU AREN'T EATEN UP BY ONE STORE GROUP QUOTE SHE SAYS QUOTE BECAUSE THOSE RELATIONSHIPS AREN'T FOREVER QUOTE HARD BARGAINS SUCH RELATIONSHIPS ALSO COME AT A PRICE RETAILERS FOR EXAMPLE OFTEN EXPECT THEIR CORE SUPPLIERS TO INVEST IN ELABORATE COMPUTERIZED INVENTORY SYSTEMS POWERFUL CHAINS MAY AND DILLARD IN PARTICULAR DRIVE PARTICULARLY HARD BARGAINS WITH VENDORS REQUIRING THEM TO GENERATE HIGHER PROFIT MARGINS AND PAY A BIGGER SHARE OF ADVERTISING AND PROMOTIONAL EXPENSES BUT TO BOOK HUGE ORDERS VENDORS WILLINGLY COMPLY WITH ORDERS FROM ONE OF THESE STORE GROUPS YOU CAN LITERALLY STAY IN BUSINESS SAYS MS. WHEATON V. F. CORPORATION SAYS IT HAS MADE MILLIONS OF DOLLARS IN CAPITAL INVESTMENTS TO UPDATE ITS OPERATIONS IN RECENT YEARS IN NINETEEN NINETY THREE ABOUT HALF OF THE ONE BILLION DOLLARS IN SALES OF ITS LEE JEANS DIVISION WERE DRIVEN THROUGH COMPUTERIZED HOOKUPS TO ITS DEPARTMENTSTORE RETAIL PARTNERS THAT'S UP FROM ABOUT FIVE PERCENT TO TEN PERCENT A COUPLE OF YEARS AGO WITH THIS COMPUTERIZED SYSTEM LEE CAN TRACK DAILY RETAIL SALES AT STORES ADJUST ITS PRODUCTION SCHEDULES ACCORDING TO DEMAND AND REPLENISH RETAILERS QUICKLY THE DIVISION SAYS THE TURNAROUND TIME FROM RECEIPT OF AN ORDER TO SHIPMENT HAS BEEN CUT IN HALF TO AN AVERAGE OF SEVEN DAYS FROM FOURTEEN DAYS TWO YEARS AGO EVEN WORLD FAMOUS DESIGNER LABELS ARE RUSHING TO ADJUST BECAUSE MOST DEPARTMENT STORES NO LONGER SELL COUTURE DESIGN HOUSES ARE STEPPING UP PROMOTION OF THEIR LESS EXPENSIVE SECONDARY COLLECTIONS SUCH AS GIORGIO ARMANI'S AX DONNA KARAN'S DKNY AND CALVIN KLEIN'S C. K. LABELS AND STORES LIKE SAKS AND BLOOMINGDALE'S ARE PUSHING HIGH FASHION HOUSES TO GIVE THEM MORE EXCLUSIVE MERCHANDISE AT CAROLE LITTLE A TWO HUNDRED EIGHTY FIVE MILLION DOLLAR LOS ANGELES BASED WOMEN'S APPAREL MAKER DEPARTMENT STORES NOW ACCOUNT FOR NEARLY NINETY FIVE PERCENT OF ITS BUSINESS UP FROM SIXTY PERCENT A DECADE AGO DOING BUSINESS WITH THEM IS A LITTLE MORE COMPLICATED THAN IT USED TO BE CONCEDES LEONARD RABINOWITZ CAROLE LITTLE'S PRESIDENT CAROLE LITTLE HAS INVESTED HEAVILY IN COMPUTERS AND MANUFACTURING IMPROVEMENTS AND IT HAS EXPANDED PRODUCTION TO GREATLY DIVERSIFY ITS LINE THIS YEAR FOR EXAMPLE CAROLE LITTLE TOOK THE COSTLY STEP OF ADDING SEVENTY PERCENT MORE STOCK KEEPING UNITS OR DIFFERENT INVENTORY ITEMS TO ITS COLLECTION IN ORDER TO PROVIDE EXCLUSIVES FOR THE BIG STORES YOU HAVE TO GIVE THEM A BIGGER MIX WITH MORE TO PICK FROM MR. RABINOWITZ SAYS WHAT APPAREL MAKERS ARE MOVING TOWARD IS MASS PRODUCED STYLES INDIVIDUALLY CUSTOMIZED FOR SPECIFIC RETAILERS SAYS KURT SALMON'S MS. BENINATI TO STAY AFLOAT SOME SMALL APPAREL MAKERS HAVE THEMSELVES CONSOLIDATED JUST YESTERDAY OUTERWEAR MAKER LONDON FOG CORPORATION WITH ANNUAL SALES OF ABOUT THREE HUNDRED FIFTY MILLION DOLLARS SAID IT SIGNED A LETTER OF INTENT TO MERGE WITH PACIFIC TRAIL INCORPORATED A FIFTY YEAR OLD SEATTLE OUTERWEAR COMPANY WITH ANNUAL SALES OF SIXTY MILLION DOLLARS A MOVE THAT WOULD CREATE PERHAPS THE BIGGEST OUTERWEAR COMPANY IN THE MARKET IN POOLING RESOURCES QUOTE WE WILL BE ABLE TO RESPOND BETTER TO THE BIG RETAILERS WITH PRODUCTS THAT ARE STYLED BETTER AND PRICED BETTER GIVING THE BEST POSSIBLE VALUE THAT CONSUMERS DEMAND TODAY QUOTE SAYS RONALD EPPERSON THE PRESIDENT OF PACIFIC TRAIL SAINT LOUIS BASED KELLWOOD CORPORATION A ONE BILLION DOLLAR APPAREL MANUFACTURER HAS ACQUIRED FIFTEEN APPAREL BUSINESSES SINCE NINETEEN EIGHTY FIVE INCLUDING CAPE COD CRICKET PARSONS PLACE AND ROBERT SCOTT LIMITED IN EACH ACQUISITION THE EXISTING MANAGEMENT CONTINUES TO RUN THE DIVISION UNDER KELLWOOD OWNERSHIP KELLWOOD SAYS IT WANTS TO BUY STILL MORE APPAREL BRANDS TO COMPLEMENT EXISTING LINES SOME SUPPLIERS ARE BECOMING RETAILERS THEMSELVES OPENING FACTORY OUTLETS TO PROTECT THEIR RETAIL DISTRIBUTION AND IN BRAZENLY LOCATING OUTLETS NEAR MALLS THEY ARE SEEMINGLY UNCONCERNED ABOUT IRRITATING THEIR DEPARTMENT STORE ACCOUNTS OUTLETS HAVE BECOME MAJOR PROFIT CENTERS FOR SHIRT MAKER PHILLIPS VAN HEUSEN CORPORATION WHICH OPERATES MORE THAN THREE HUNDRED OUTLET STORES AND WOMEN'S WEAR MAKER HARVE BENARD LIMITED WITH FORTY OUTLET STORES DOCTOR PEPPER SLASH SEVEN UP COMPANIES HOPING FOR A STAKE IN THE HOTTEST NICHE OF THE BEVERAGE BUSINESS HAS TEAMED UP WITH BRITAIN'S TWINING CROSFIELD AND COMPANY TO SELL ICED TEA IN THE U. S. DOCTOR PEPPER THE THIRD LARGEST U. S. SOFT DRINK VENDOR SAID ITS SEVEN UP U. S. A. UNIT AND TWINING FORMED A VENTURE TO DEVELOP AND MARKET THE TEA EXPECTED TO HIT STORE SHELVES THIS SPRING UNDER THE TWINING NAME ALTHOUGH TWINING IS A HEAVYWEIGHT IN SPECIALTY TEAS IN EUROPE IT'S THE COMPANY BEHIND THE EARL GREY AND BREAKFAST BLENDS NEITHER COMPANY HAS YET DABBLED IN READY TO DRINK ICED TEAS PROMPTING ANALYSTS TO WONDER WHETHER THE JOINT VENTURE HASN'T ALREADY MISSED THE MARK QUOTE THIS SOUNDS LIKE A DOLLAR SHORT TO ME QUOTE SAID WILLIAM LEACH A BEVERAGE ANALYST AT DONALDSON LUFKIN AND JENRETTE SECURITIES CORPORATION IN NEW YORK IT'S A CROWDED MARKET ALREADY INDEED PEPSICO INCORPORATED AND COCA COLA COMPANY DOCTOR PEPPER'S BIGGEST COMPETITORS IN THE SOFT DRINK WARS LONG AGO PICKED SIDES ON THE ICED TEA FRONT PEPSI SELLS TEA THROUGH A JOINT VENTURE WITH THOMAS J. LIPTON COMPANY AND COKE HAS JOINED WITH NESTLE S. A. TO SELL THE NESTEA BRAND LIPTON AND NESTEA RANK SECOND AND THIRD RESPECTIVELY BEHIND MARKET LEADER SNAPPLE BEVERAGE CORPORATION IN A READY TO DRINK TEA MARKET THAT ANALYSTS GUESS COULD GROW FIFTY PERCENT THIS YEAR TO ABOUT ONE BILLION DOLLARS IN RETAIL SALES JIM BALL A DOCTOR PEPPER SPOKESMAN SAID THE COMPANY BELIEVES THE MARKET IS FAR FROM SATURATED IT'S A VERY VERY EXPLOSIVE SEGMENT OF BEVERAGES A SPOKESMAN FOR LONDON BASED TWINING A UNIT OF ASSOCIATED BRITISH FOODS P. L. C. COULDN'T BE REACHED NEW YORK STATE INSURANCE OFFICIALS ARE INVESTIGATING WHETHER PRUDENTIAL INSURANCE COMPANY OF AMERICA VIOLATED STATE RULES GOVERNING THE SALE OF GROUP PENSION PLANS THE STATE SAYS PRUDENTIAL THE NATION'S LARGEST INSURER SOLD CERTAIN GROUP PENSION PRODUCTS BEFORE RECEIVING STATE APPROVAL IN OTHER CASES THE STATE SAYS PRUDENTIAL SOLD PRODUCTS AFTER THE STATE REJECTED THEM KEVIN FOLEY OF THE NEW YORK INSURANCE DEPARTMENT SAID THAT QUOTE THOUSANDS QUOTE OF INDIVIDUALS WERE COVERED BY THE PENSION PLANS UNDER INVESTIGATION BUT THAT NONE ARE AT RISK OF LOSING THEIR MONEY PRUDENTIAL SAID IN A STATEMENT THAT FEWER THAN ONE HUNDRED PEOPLE WERE AFFECTED THE NEWARK N. J. COMPANY DISCOVERED THE SITUATION ITSELF AND TOOK ITS FINDINGS TO THE STATE IN SEPTEMBER THE EXECUTIVES RESPONSIBLE FOR THE PROBLEM HAVE BEEN DISCIPLINED PRUDENTIAL SAID PEOPLE FAMILIAR WITH THE MATTER SAID THE OFFICIALS ARE NO LONGER WITH THE COMPANY ANY TIME YOU FIND A COMPANY NEEDED PRIOR APPROVAL AND THEN FLOUTED IT IT BECOMES A SERIOUS MATTER MR. FOLEY SAID CALLING THE VIOLATIONS TECHNICAL THE PENSION PRODUCTS INVOLVED ARE SO CALLED DEFINED CONTRIBUTION PLANS INCLUDING FOUR HUNDRED ONE K. S. FOUR HUNDRED THREE B. S. AND INDIVIDUAL RETIREMENT ACCOUNTS BOUGHT BY CORPORATIONS ON BEHALF OF THEIR EMPLOYEES THEY WERE SOLD BY PRUDENTIAL ASSET MANAGEMENT COMPANY PENSION PRODUCTS ARE ONE OF PRUDENTIAL'S BIGGEST LINES OF BUSINESS PRUDENTIAL IS WORKING WITH THE DEPARTMENT ON A SETTLEMENT BUT NO SETTLEMENT WILL BE MADE UNTIL THE STATE CONCLUDES ITS INVESTIGATION IN ADDITION TO FORCING THE COMPANY TO REVERSE SOME OF THE SALES NEW YORK COULD FINE PRUDENTIAL INSURANCE DEPARTMENT FINES FOR VIOLATIONS OF THIS TYPE ARE GENERALLY SMALL THERE IS MUCH TO BE SAID FOR THE CIVIL LIBERTARIAN MAXIM THAT IF YOU DON'T LIKE PORNOGRAPHY DON'T BUY IT THE FREE MARKET COROLLARY WOULD SEEM TO BE THAT IF YOUR CUSTOMERS DON'T LIKE PORNOGRAPHY DON'T SELL IT BUT A RECENT FEDERAL COURT DECISION HAS TAKEN THAT OPTION AWAY FROM CABLE TELEVISION COMPANIES IN A NINETEEN NINETY TWO ACT CONGRESS HAD PERMITTED NOT REQUIRED CABLE OPERATORS TO BAN INDECENT PROGRAMMING FROM PUBLIC AND LEASED ACCESS CHANNELS CONGRESS DID SO IN RESPONSE TO COMPLAINTS ABOUT EXPLICIT SEXUAL IMAGES THAT A VIEWER WAS LIKELY TO ENCOUNTER ON EVEN THE MOST INNOCENT SAMPLING OF CABLE CHANNELS ON NOVEMBER TWENTY THIRD NINETEEN NINETY THREE IN ALLIANCE FOR COMMUNITY MEDIA V. F. C. C. A THREE JUDGE PANEL OF THE U. S. COURT OF APPEALS FOR THE D. C. CIRCUIT RULED THAT CONGRESS HAD VIOLATED THE FIRST AMENDMENT BY PERMITTING CABLE OPERATORS TO TAKE THOSE MEASURES LAST FRIDAY THE CLINTON ADMINISTRATION PETITIONED THE FULL COURT TO RECONSIDER THE CASE IF THE PANEL'S DECISION IS NOT OVERTURNED THE RESULT FOR MANY VIEWERS ESPECIALLY PARENTS MAY BE TO MAKE CABLE SEEM MORE LIKE A MINEFIELD THAN A SUPERHIGHWAY PUBLIC ACCESS AND LEASED ACCESS CHANNELS ARE PART OF A CABLE SUBSCRIBER'S BASIC SERVICE PACKAGE THE CABLE COMMUNICATIONS POLICY ACT OF NINETEEN EIGHTY FOUR GAVE MUNICIPALITIES THE RIGHT TO NEGOTIATE FOR PUBLIC ACCESS CHANNELS AS PART OF THEIR FRANCHISE AGREEMENTS WITH CABLE OPERATORS THE ACT ESSENTIALLY PROVIDED THAT PUBLIC ACCESS CHANNELS MUST BE OPEN AT NO CHARGE TO ALL LOCAL RESIDENTS WHO WANT TO BROADCAST NONCOMMERCIAL MATTER ALSO THE ACT DIRECTLY REQUIRED OPERATORS TO RESERVE A NUMBER OF LEASED ACCESS CHANNELS FOR COMMERCIAL USE PROBLEMS AROSE BECAUSE THE NINETEEN EIGHTY FOUR LEGISLATION PROHIBITED OPERATORS FROM EXERCISING ANY EDITORIAL CONTROL OVER PUBLIC ACCESS OR LEASED ACCESS CHANNELS THE PREDICTABLE RESULT WAS THAT IN SOME AREAS NUDITY AND SEX ACTS BECAME PART OF THE BASIC CABLE PACKAGE ESPECIALLY ON LEASED ACCESS CHANNELS WHICH FEATURED EXPLICIT ADVERTISEMENTS FOR QUOTE ADULT QUOTE FILMS PHONE LINES AND THE LIKE UNDER FEDERAL LAW THE OPERATORS WERE POWERLESS TO RESPOND TO SUBSCRIBERS' COMPLAINTS BY KEEPING THAT MATERIAL OFF WHEN CONGRESS REACTED TO THE SITUATION IN NINETEEN NINETY TWO ONE STEP IT TOOK WAS TO RESTORE SOME EDITORIAL CONTROL TO THE OPERATORS THE FEDERAL COMMUNICATIONS COMMISSION WAS THEN PROMPTLY GREETED BY A FIRST AMENDMENT CHALLENGE IN THE D. C. CIRCUIT FROM PROGRAMMERS AND CIVIL LIBERTIES GROUPS BUT THE FIRST AMENDMENT RESTRICTS ONLY GOVERNMENT CENSORSHIP NOT THE EDITORIAL DECISIONS OF PRIVATE COMPANIES WHAT CONGRESS HAD DONE IN RESTORING EDITORIAL CONTROL WAS TO REDUCE GOVERNMENT'S INVOLVEMENT IN CONTENT NOT INCREASE IT IN STRIKING DOWN THE CHANGE IN THE LAW THE D. C. CIRCUIT TREATED IT IN THE PANEL'S WORDS AS DEPUTIZING CABLE OPERATORS TO CENSOR ON BEHALF OF THE GOVERNMENT BECAUSE THE CHANGE IN THE LAW HAD THE EFFECT OF SIGNIFICANTLY ENCOURAGING PRIVATE CENSORSHIP ANY EDITORIAL DECISIONS OF THE OPERATORS TO BAN INDECENT MATERIAL ON THE ACCESS CHANNELS WERE STATE ACTION ATTRIBUTABLE TO THE GOVERNMENT THE PANEL BASED ITS DECISION ON A NINETEEN SIXTY SEVEN SUPREME COURT CASE REITMAN V. MULKEY THE HIGH WATER MARK IN THE EXPANSION OF STATE ACTION IN THAT CASE CALIFORNIANS HAD ENACTED A STATE CONSTITUTIONAL AMENDMENT TO ALLOW RACIAL DISCRIMINATION IN HOUSING AND TO OVERRIDE THE STATE'S FAIR HOUSING LAWS THE QUESTION WAS WHETHER THE EQUAL PROTECTION CLAUSE OF THE U. S. CONSTITUTION MADE THE AMENDMENT INVALID THE EQUAL PROTECTION CLAUSE HAD LONG BEEN HELD NOT TO CONTROL PRIVATE DISCRIMINATION AT THE FEDERAL LEVEL ONLY CIVIL RIGHTS STATUTES DO SO THE SUPREME COURT FOUND HOWEVER THAT THE CALIFORNIA AMENDMENT ENCOURAGED PRIVATE DISCRIMINATION AND INVOLVED THE STATE IN IT MAKING PRIVATE ACTS OF DISCRIMINATION INTO ILLEGAL STATE ACTION IN ITS DECISION THE D. C. CIRCUIT REGARDED THE NINETEEN NINETY TWO CABLE ACT PERMITTING PRIVATE CENSORSHIP AS ANALOGOUS TO THE AMENDMENT IN REITMAN PERMITTING PRIVATE DISCRIMINATION THE PANEL'S EQUATION OF A CABLE COMPANY'S EDITORIAL CONTROL WITH STATE ACTION MAY NOT HOWEVER ADEQUATELY REFLECT THE SUPREME COURT'S STATE ACTION DECISIONS IN THE TWENTY FIVE YEARS AFTER REITMAN MOST NOTABLY THE SUPREME COURT'S NINETEEN SEVENTY SIX DECISION IN HUDGENS V. N. L. R. B. MADE CLEAR THAT THE FIRST AMENDMENT DID NOT FORBID THE NATIONAL LABOR RELATIONS BOARD FROM ALLOWING A SHOPPING CENTER TO EXCLUDE PICKETERS EVEN THOUGH SUCH A DECISION WOULD AUTHORIZE PRIVATE CENSORSHIP BY IMPLICATION THE HUDGENS DECISION SEEMS TO INDICATE THAT GOVERNMENT AUTHORIZATION OF PRIVATE EDITORIAL DECISIONS UNLIKE GOVERNMENT AUTHORIZATION OF RACIAL DISCRIMINATION IS SIMPLY NOT A CONSTITUTIONAL ISSUE YET THE PRACTICAL CONSEQUENCES OF THE D. C. CIRCUIT'S DECISION ARE REAL AND THEY EXTEND BEYOND CABLE TELEVISION THE CLINTON ADMINISTRATION'S PLAN FOR THE NATIONAL INFORMATION INFRASTRUCTURE TOUTED BY VICE PRESIDENT GORE IN LOS ANGELES EARLIER THIS WEEK CALLS FOR THE FEDERAL GOVERNMENT TO HAVE AN ACTIVIST ROLE IN AMONG OTHER THINGS SETTING TECHNICAL STANDARDS FUNDING RESEARCH AND DEVELOPMENT AND ENSURING UNIVERSAL ACCESS TO INFORMATION RESOURCES SUCH AS COMPUTER NETWORKS AT SOME POINT FEDERAL INVOLVEMENT IN THIS INFRASTRUCTURE COULD BE HELD UNDER THE D. C. CIRCUIT'S MODEL TO TRANSFORM THE CONTENT DECISIONS OF SERVICE PROVIDERS INTO ILLEGAL CENSORSHIP THAT WOULD FRUSTRATE THE WILL OF INFORMATION CONSUMERS WHO PAY IN PART FOR JUST THOSE EDITORIAL JUDGMENTS OF COURSE THE MARKET MAY ULTIMATELY REJECT THE CENSORING OF SEXUAL OR OTHER MATERIAL FROM INFORMATION SERVICES IF PEOPLE WANT THE MATERIAL BUT THE VOTES FOR AND AGAINST THAT TYPE OF EDITORIAL CONTROL SHOULD BE CAST BY CUSTOMERS VOTING WITH DOLLARS NOT BY FEDERAL JUDGES MR. PRICE IS AN ATTORNEY IN WASHINGTON AFTER TWENTY THREE YEARS AS HAROLD S. HOOK'S FRIEND AND ALLY AT AMERICAN GENERAL CORPORATION MICHAEL J. POULOS HAS SUDDENLY BECOME AN ADVERSARY OF SORTS MR. POULOS SIXTY TWO YEARS OLD RESIGNED AS VICE CHAIRMAN OF THE BIG HOUSTON LIFE INSURANCE COMPANY IN SEPTEMBER AND IN A MOVE THAT SURPRISED EVEN HIS CLOSEST FRIENDS ANNOUNCED HE WAS TAKING A JOB AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WESTERN NATIONAL CORPORATION THE ANNUITY AND LIFE INSURANCE UNIT CONSECO PLANS TO SPIN OFF IN AN INITIAL PUBLIC OFFERING NEXT MONTH THE COMPANY ALSO WILL BE BASED IN HOUSTON AND WILL COMPETE WITH MUCH LARGER AMERICAN GENERAL IN THE ANNUITY BUSINESS BY TAKING THE WESTERN NATIONAL JOB MR. POULOS STEPS OUT OF THE SHADOW AS SECOND IN COMMAND AT AMERICAN GENERAL AND FULFILLS A LONG SOUGHT GOAL TO RUN A COMPANY WHICH HE KNEW WOULD BE UNLIKELY AT AMERICAN GENERAL BUT IT REMAINS TO BE SEEN WHETHER MR. POULOS'S MOVE INTO THE LIMELIGHT WILL BE SUCCESSFUL ALTHOUGH HE'S HIGHLY REGARDED IN INSURANCE CIRCLES HE HASN'T EVER BEEN AT THE HELM OF A COMPANY FOR HIS PART MR. HOOK SAYS HE HASN'T ANY DOUBT MR. POULOS HAS WHAT IT TAKES TO LEAD A COMPANY AT ONE POINT MANY OBSERVERS SPECULATED MR. POULOS MIGHT BE NAMED INTERIM CHAIRMAN AFTER MR. HOOK ALSO SIXTY TWO ANNOUNCED HIS PLANS TO STEP DOWN AT THE END OF THIS YEAR BUT MR. POULOS LOBBIED AGAINST THAT IDEA NOTING TO DIRECTORS THAT WITH THE COMPANY'S MANDATORY RETIREMENT AT SIXTY FIVE IT WOULD BE DISRUPTIVE TO APPOINT HIM FOR SUCH A SHORT TERM THUS IT LOOKED AS IF THE TWO FRIENDS WHO MET IN THE NINETEEN SIXTIES WHEN BOTH WORKED AT UNITED STATES LIFE INSURANCE IN NEW YORK WOULD FINISH THEIR CAREERS TOGETHER AT THE SAME COMPANY QUOTE I ALWAYS FIGURED I'D BE THE FIRST ONE OUT AND THAT MIKE WOULD FOLLOW SOON AFTER QUOTE SAYS MR. HOOK BUT A BREAKFAST MEETING LAST FALL BETWEEN MR. POULOS AND ANOTHER INSURANCE INDUSTRY FRIEND CONSECO CHAIRMAN STEPHEN C. HILBERT CHANGED THAT MR. HILBERT OFFERED THE WESTERN NATIONAL JOB TO MR. POULOS WHO INITIALLY HESITATED BUT THE CHANCE TO RUN HIS OWN SHOW EVENTUALLY SWAYED HIM HE SAYS THE CHANCE TO SPEND EVEN FIVE YEARS AS A C. E. O. IS A CHANCE I'LL NEVER HAVE AGAIN HE SAYS MR. POULOS WILL BE WELL COMPENSATED UNDER A FIVE YEAR EMPLOYMENT AGREEMENT HE WILL EARN SEVEN HUNDRED FIFTY THOUSAND DOLLARS A YEAR PLUS A FIVE HUNDRED THOUSAND DOLLAR BONUS FOR NINETEEN NINETY THREE FROM NINETEEN NINETY FOUR TO NINETEEN NINETY SIX HE'LL EARN BONUSES OF AT LEAST SEVEN HUNDRED FIFTY THOUSAND DOLLARS A YEAR IN ADDITION HE WAS AWARDED TEN YEAR OPTIONS TO PURCHASE AS MANY AS ONE POINT TWO FIVE MILLION WESTERN NATIONAL SHARES AT THE INITIAL OFFERING PRICE IN HIS NEW ROLE MR. POULOS WILL COMPETE TO SOME DEGREE AGAINST HIS FORMER EMPLOYER BOTH COMPANIES ARE RESPECTED PLAYERS IN THE ANNUITIES MARKET NEITHER COMPANY HOWEVER MAKES MUCH OF THE RIVALRY BECAUSE OF THEIR SIZES WESTERN NATIONAL RECEIVES ABOUT ONE HUNDRED MILLION DOLLARS A YEAR IN ANNUITY DEPOSITS AMERICAN GENERAL RECEIVES ABOUT TWO BILLION DOLLARS MOSTLY FROM TAX SHELTERED ANNUITY PRODUCTS MARKETED THROUGH FOUR HUNDRED THREE B. RETIREMENT PLANS FOR EMPLOYEES OF NONPROFIT AGENCIES WESTERN NATIONAL THOUGH IT HAS ONE POINT EIGHT BILLION DOLLARS OF ITS ASSETS TIED TO FOUR HUNDRED THREE B. RELATED PRODUCTS HASN'T PLAYED UP THAT SIDE OF THE BUSINESS IN RECENT YEARS OPTING INSTEAD TO FOCUS ON FAST GROWING INDIVIDUAL ANNUITY PRODUCTS SOLD THROUGH BANKS BUT MR. POULOS IS KEEN ON EXPANDING THE FOUR HUNDRED THREE B. BUSINESS BY PICKING UP WHAT AMERICAN GENERAL LEAVES BEHIND MR. POULOS ALSO PLANS TO AGGRESSIVELY PURSUE SO CALLED STRUCTURED SETTLEMENT ANNUITIES ALTERNATIVES TO LUMP SUM PERSONAL INJURY SETTLEMENTS THAT PROPERTY AND CASUALTY COMPANIES PURCHASE TO PROVIDE A STREAM OF INCOME TO INJURED PERSONS AS FOR HIS RELATIONSHIP WITH MR. HOOK MR. POULOS SAYS HIS DEPARTURE HASN'T SOURED THEIR FRIENDSHIP AT AMERICAN GENERAL THEY MET FOR LUNCH NEARLY EVERY SATURDAY NOW THAT MR. POULOS HAS LEFT THEY STILL MEET ABOUT EVERY OTHER WEEK THE NEXT TO LAST HOLDOUT IN JAPAN'S PERSONAL COMPUTER WARS HAS THROWN IN THE TOWEL SEIKO EPSON CORPORATION THE ONLY COMPANY TO CLONE P. C.S MADE BY JAPANESE MARKET LEADER N. E. C. CORPORATION ON TUESDAY SAID IT WILL IMMEDIATELY START SELLING P. C.S COMPATIBLE WITH THOSE MADE BY INTERNATIONAL BUSINESS MACHINES CORPORATION UNTIL NOW SEIKO EPSON HAD BEEN THE ONLY JAPANESE P. C. MAKER EXCEPT N. E. C. THAT HAD REFUSED TO SELL I. B. M. COMPATIBLE P. C.S IN JAPAN SEIKO EPSON'S MOVE UNDERSCORES THE THREAT N. E. C.'S COMPUTERS FACE FROM I. B. M. COMPATIBLE MACHINES MORE THAN A YEAR AGO U. S. MANUFACTURERS I. B. M. COMPAQ COMPUTER CORPORATION AND DELL COMPUTER CORPORATION UNLEASHED A BARRAGE OF LOW PRICED I. B. M. COMPATIBLE P. C.S IN JAPAN CLEVELAND CLIFFS INCORPORATED CLEVELAND G. FRANK JOKLIK SIXTY FIVE YEARS OLD RETIRED CHIEF EXECUTIVE OFFICER OF KENNECOTT CORPORATION A UNIT OF R. T. Z. CORPORATION WAS ELECTED A DIRECTOR OF THIS IRON ORE MINING CONCERN HIS ELECTION INCREASES THE COMPANY'S BOARD TO THIRTEEN MEMBERS GEORGE R. MRKONIC FORTY ONE YEARS OLD EXECUTIVE VICE PRESIDENT OF KMART CORPORATION'S SPECIALTY RETAIL GROUP WAS NAMED A DIRECTOR OF THIS PRODUCER OF MANUFACTURED HOUSING INCREASING THE SIZE OF THE BOARD TO SEVEN JOHN M. ABRAHAM THIRTY EIGHT YEARS OLD FORMERLY RESPONSIBLE FOR WORLD WIDE SOFTWARE DEVELOPMENT AT BOOLE AND BABBAGE INCORPORATED AND A CONSULTANT TO COMPUWARE WAS NAMED A SENIOR VICE PRESIDENT MERGERS AND ACQUISITIONS AT THE SOFTWARE MAKER GEORGE CHAMILLARD FIFTY FIVE YEARS OLD WAS NAMED AN EXECUTIVE VICE PRESIDENT OF THIS MAKER OF SEMICONDUCTOR TEST EQUIPMENT HE WAS PREVIOUSLY VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S CONNECTION SYSTEMS DIVISION IN NASHUA N. H. PATRICK G. DEASY FIFTY FIVE YEARS OLD WAS ELECTED A CORPORATE VICE PRESIDENT OF THIS PROFESSIONAL AND TECHNICAL SERVICE PROVIDER MR. DEASY IS CURRENTLY PRESIDENT OF THE DYNAIR GROUND SERVICES GROUP UNIT WILLIAM L. WEISS CHAIRMAN OF AMERITECH CORPORATION WAS ELECTED TO THE BOARD OF THIS MANUFACTURING AND NATURAL GAS PIPELINE CONCERN THE ELECTION OF MR. WEISS SIXTY FOUR YEARS OLD INCREASES THE BOARD TO ELEVEN MEMBERS DOUGLAS A. SCOVANNER THIRTY EIGHT YEAR OLD SENIOR VICE PRESIDENT FINANCE OF FLEMING COMPANIES WAS NAMED TO THE VACANT POST OF SENIOR VICE PRESIDENT FINANCE OF THIS RETAILING CONCERN JOHN B. TURNER FIFTY ONE YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT FOR EDUCATION TRAINING AND DIVERSITY AT THIS UTILITY MR. TURNER HAD BEEN PRESIDENT OF KNOXVILLE COLLEGE WITH THE DEADLINE JUST ONE MONTH AWAY TRADE TALKS BETWEEN THE U. S. AND JAPAN ARE QUOTE GOING NOWHERE FAST QUOTE JOAN E. SPERO A TOP U. S. NEGOTIATOR SAID IT'S BEEN PREDICTABLE IN THAT THE JAPANESE ARE TOUGH NEGOTIATORS SAID MS. SPERO UNDERSECRETARY OF STATE FOR ECONOMIC BUSINESS AND AGRICULTURAL AFFAIRS THEY PLAY JUDO DEFENSE ALL THE TIME WAITING UNTIL THE END OF THE DAY AND THE ELEVENTH HOUR TO GRUDGINGLY YIELD SOMETHING SHE ADDED MS. SPERO IS IN TOKYO FOR A FOUR DAY ASSESSMENT OF THE DISCUSSIONS ON INCREASING U. S. ACCESS TO THE JAPANESE MARKET FOR INSURANCE AUTOMOBILES AND AUTO PARTS AND GOVERNMENT PROCUREMENT OF MEDICAL AND TELECOMMUNICATIONS EQUIPMENT DESPITE THE DEADLOCK MS. SPERO CITED A POSSIBILITY OF ADVANCEMENT IN TWO MAIN AREAS OF THE FRAMEWORK TALKS MACROECONOMIC ISSUES SUCH AS REDUCING JAPAN'S CURRENT ACCOUNT SURPLUS AND BOOSTING IMPORTS OF GOODS AND SERVICES AND COOPERATION ON ISSUES OF GLOBAL IMPORTANCE SUCH AS ENVIRONMENTAL PROTECTION OVERPOPULATION AND AIDS THE ACCOUNTING FIRM COMMISSIONED IN NINETEEN NINETY TWO IN AN EFFORT TO SQUELCH THE CONTROVERSY OVER THE CLINTONS' WHITEWATER DEVELOPMENT COMPANY INVESTMENT REFUSED TO VOUCH FOR THE ACCURACY OF ITS FINDINGS WHAT'S MORE THE FIRM WHICH DEPICTED THE WHITEWATER REAL ESTATE VENTURE AS UNPROFITABLE WASN'T AS INDEPENDENT AS THE WHITE HOUSE HAS PORTRAYED IT THE REPORT WAS PREPARED BY PATTEN MCCARTHY AND ASSOCIATES AT THE REQUEST OF JAMES LYONS A CLINTON FRIEND AND DENVER ATTORNEY IT TURNS OUT THAT MR. LYONS AND LESLIE PATTEN HEAD OF THE DENVER BASED ACCOUNTING FIRM HAVE LONG BEEN FRIENDS AND BUSINESS ASSOCIATES AMONG OTHER THINGS THEY WERE THE PRINCIPAL OWNERS OF TWO COLORADO BANKS IN THE EARLY NINETEEN EIGHTIES AS QUESTIONS PERSIST OVER THE WHITEWATER VENTURE PRESIDENT CLINTON SAID HE IS RECONSIDERING HIS OPPOSITION TO HAVING A SPECIAL COUNSEL APPOINTED TO INVESTIGATE THE MATTER DESPITE HIS AGREEMENT TO TURN OVER DOCUMENTS RELATED TO WHITEWATER IN A C. B. S. NEWS INTERVIEW LAST NIGHT HE SAID THAT QUOTE PEOPLE SAID THAT'S NOT ENOUGH SO I THINK WE HAVE TO EVALUATE THAT AND SEE WHERE WE ARE QUOTE THE WHITE HOUSE HAS RELIED HEAVILY ON THE SO CALLED LYONS REPORT SINCE EARLY NINETEEN NINETY TWO TO REBUT POLITICAL CRITICISM OF THEIR BUSINESS DEALINGS WITH JAMES MCDOUGAL THE CLINTONS' WHITEWATER PARTNER AND PROPRIETOR OF THE FAILED MADISON GUARANTY SAVINGS AND LOAN OF LITTLE ROCK ARKANSAS BUT IN A MARCH NINETEEN NINETY TWO LETTER TO BILL AND HILLARY RODHAM CLINTON THE PATTEN FIRM INCLUDED A DISCLAIMER THAT ITS FINANCIAL FINDINGS SHOULDN'T BE CONSTRUED TO REPRESENT THE RESULTS OF AN ATTEST SERVICE OR COMPILATION OF FINANCIAL STATEMENTS DUE TO THE NATURE OF THE ENGAGEMENT AND INCOMPLETE OR UNAVAILABLE RECORDS THE LETTER WAS INCLUDED IN THE LYONS REPORT BUT HASN'T ATTRACTED ATTENTION ACCORDING TO DOUGLAS CARMICHAEL PROFESSOR OF ACCOUNTANCY AT CITY UNIVERSITY OF NEW YORK'S BARUCH COLLEGE THE DISCLAIMER MEANS THAT THE FIRM GAVE NO ASSURANCES AS TO THE ACCURACY OF THE LYONS REPORT THE FIRM INSTEAD WAS MERELY FUNCTIONING IN THE CAPACITY OF FINANCIAL CONSULTANTS WHO HAVE BEEN HIRED BY AN ATTORNEY SAID MR. CARMICHAEL FORMER VICE PRESIDENT OF AUDITING AT THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS NO ONE SHOULD PLACE ANY RELIANCE IN WHAT THEY HAVE TO SAY IN THIS REPORT MR. CARMICHAEL SAID THE LACK OF INDEPENDENCE WOULD BE JUST ANOTHER REASON NOT TO PAY ANY ATTENTION TO IT LAST NIGHT BRUCE LINDSEY A SENIOR WHITE HOUSE OFFICIAL TOOK SHARP ISSUE WITH MR. CARMICHAEL'S ASSERTIONS THE FACT THAT THE ACCOUNTING FIRM SAYS IT COULDN'T VOUCH FOR THE ACCURACY OF THE WHITEWATER INFORMATION TO THE SAME DEGREE THEY COULD IN AN AUDIT ISN'T SURPRISING HE SAID WE'VE ALWAYS SAID THE RECORDS WERE INCOMPLETE MR. PATTEN DECLINED THROUGH AN ATTORNEY TO COMMENT ABOUT THE WHITEWATER REPORT CITING ACCOUNTANT CLIENT PRIVILEGE MR. LYONS SAID THAT CLINTON CAMPAIGN OFFICIALS SELECTED THE PATTEN FIRM FOR THE WHITEWATER JOB AFTER CONSIDERING AND REJECTING SEVERAL OTHER OPTIONS INCLUDING HIRING ONE OF THE BIG SIX ACCOUNTING FIRMS OR RETAINING A RETIRED PARTNER OF SUCH A FIRM MR. LYONS SAID IN AN INTERVIEW YESTERDAY THAT THERE WAS NO CONFLICT OF INTEREST INVOLVED AND INSISTED THAT HIS TIES TO MR. PATTEN DIDN'T PREJUDICE THE FINDINGS IN THE LYONS REPORT THE FIRM HAD QUOTE NO RELATIONSHIP TO THE CAMPAIGN WHATSOEVER AND THEY HAD NO RELATIONSHIP TO ME AT THE TIME QUOTE HE SAID HE SAID HE DISCLOSED TO CAMPAIGN OFFICIALS HIS LONGTIME RELATIONSHIP TO MR. PATTEN A CERTIFIED PUBLIC ACCOUNTANT BUT SOME ACCOUNTING EXPERTS QUESTION THE HIRING OF THE PATTEN FIRM TO DO A FINANCIAL RECONSTRUCTION OF THE CLINTONS' WHITEWATER PARTNERSHIP WITH MR. MCDOUGAL AND HIS FORMER WIFE SUSAN THE NOTION OF INDEPENDENCE IS REALLY SACROSANCT FOR AN AUDITOR SAID HOWARD SCHILIT ASSOCIATE PROFESSOR OF ACCOUNTING AT AMERICAN UNIVERSITY IN WASHINGTON I DON'T THINK IT WAS GOOD JUDGMENT ON THE PART OF THE CAMPAIGN TO RETAIN THE PATTEN FIRM WHOEVER HAD THE CHOICE SHOULD HAVE DONE A BETTER DUE DILIGENCE AND BETTER FACT FINDING TO DETERMINE THE RELATIONSHIP OF LYONS AND PATTEN THE LYONS REPORT WHICH CLINTON AIDES HAVE CHARACTERIZED AS INDEPENDENT HAS BEEN CRITICIZED FOR NOT GOING INTO CERTAIN SIGNIFICANT WHITEWATER TRANSACTIONS INVESTIGATORS FOR REPUBLICAN MEMBERS OF THE HOUSE BANKING COMMITTEE INTEND TO SCRUTINIZE HOW THE PATTEN FIRM REACHED ITS KEY FINDINGS INCLUDING THE CONCLUSION THAT THE CLINTONS LOST SIXTY EIGHT THOUSAND NINE HUNDRED DOLLARS ON THEIR WHITEWATER INVESTMENT WHILE THE MCDOUGALS LOST NINETY TWO THOUSAND TWO HUNDRED DOLLARS MR. LYONS SAID THE REPORT WASN'T INTENDED TO BE A FULL ACCOUNTING OF WHITEWATER FINANCES REMEMBER WE WEREN'T AFTER AN AUDIT WE WERE AFTER A FINANCIAL RECONSTRUCTION HE SAID THE OBJECTIVE WAS TO DETERMINE WHETHER THE CLINTONS HAD BEEN EXPOSED TO ANY FINANCIAL RISKS AND WHETHER THEY HAD INVESTED AND LOST MONEY ON WHITEWATER QUOTE THOSE TWO QUESTIONS WERE ANSWERED IN A THOROUGH AND COMPLETE FASHION QUOTE SAID MR. LYONS A PARTNER IN THE DENVER FIRM ROTHGERBER APPEL POWER AND JOHNSON MR. LYONS TOOK ISSUE WITH MR. MCDOUGAL'S RECENT ASSERTION THAT HE RECALLS THE CLINTONS' INVESTING ONLY NINE THOUSAND DOLLARS IN WHITEWATER FRANKLY I THINK HIS MEMORY IS FAULTY HE SAID WE STAND BY OUR SIXTY EIGHT THOUSAND NINE HUNDRED DOLLAR ESTIMATE IN THE LATE NINETEEN SEVENTIES MESSRS LYONS AND PATTEN ALONG WITH ANOTHER LYONS LAW PARTNER WILLIAM P. JOHNSON FORMED A BANK HOLDING COMPANY AND OPENED TWO BANKS GREENWOOD INDUSTRIAL BANK IN LITTLETON COLORADO IN NINETEEN EIGHTY AND ARAPAHOE INDUSTRIAL BANK IN ENGLEWOOD COLORADO IN NINETEEN EIGHTY TWO ACCORDING TO STATE BANKING RECORDS MR. LYONS SAID THEY SOLD OUT A YEAR OR SO LATER TO ANOTHER GROUP OF INVESTORS WHO MERGED THE BANKS IN NINETEEN EIGHTY SIX THE SURVIVING ARAPAHOE BANK WHICH HAD ASSETS OF ABOUT FIFTEEN MILLION DOLLARS FAILED IN EARLY NINETEEN EIGHTY EIGHT AND WAS LIQUIDATED BY STATE REGULATORS MR. CLINTON'S COMMENTS ON C. B. S. CAME AS SOME DEMOCRATIC SENATORS JOINED THE REPUBLICAN CHORUS CALLING ON ATTORNEY GENERAL JANET RENO TO NAME A SPECIAL COUNSEL FOR THE WHITEWATER CASE DEMOCRATIC SENATOR ROBERT KERREY OF NEBRASKA YESTERDAY CAME OUT IN FAVOR OF A SPECIAL COUNSEL JOINING SUGGESTIONS BY SENATORS DANIEL MOYNIHAN OF NEW YORK BILL BRADLEY OF NEW JERSEY RUSSELL FEINGOLD OF WISCONSIN AND CHARLES ROBB OF VIRGINIA UNTIL THE PAST COUPLE OF DAYS THE WHITE HOUSE DISMISSED THE TALK OF A SPECIAL COUNSEL AS PARTISAN POSTURING LAST NIGHT HOWEVER OFFICIALS SAID THE APPOINTMENT OF A SPECIAL COUNSEL WAS UNDER CONSIDERATION WE CONTINUE TO BELIEVE THE STANDARD FOR AN INDEPENDENT PROSECUTOR HASN'T BEEN MET SAID WHITE HOUSE ADVISER GEORGE STEPHANOPOULOUS NO DECISION HAS BEEN MADE SEPARATELY EIGHT SENIOR REPUBLICAN LEGISLATORS URGED MS. RENO TO SEEK STATUTE OF LIMITATIONS WAIVERS FROM THE CLINTONS IN WHITEWATER RELATED MATTERS A JUSTICE DEPARTMENT SPOKESMAN SAID HOWEVER THAT ANY MATTER CONCERNING ITS PROBE OF THE CLINTONS' INVESTMENT IN WHITEWATER AND THEIR RELATIONSHIP WITH MADISON GUARANTY HAS A TEN YEAR LIMITATION WHICH WON'T EXPIRE UNTIL NINETEEN NINETY NINE THERE IS SIMPLY NO REASON TO BELIEVE THAT THERE IS ANY MATTER THAT WILL SHORTLY BE BEYOND THE REACH OF FEDERAL PROSECUTORS SAID CARL STERN MS. RENO'S CHIEF SPOKESMAN THE QUEEN OF DIP FINANCING IS STEPPING DOWN DARLA D. MOORE THE CHEMICAL BANKING CORPORATION MANAGING DIRECTOR WHO TURNED THE ARCANE WORLD OF DEBTOR IN POSSESSION LENDING INTO A BOOMING BUSINESS RESIGNED YESTERDAY AFTER A THIRTEEN YEAR BANKING CAREER QUOTE I'M A FIRM BELIEVER IN PEOPLE NEEDING TO REPOT THEMSELVES PERIODICALLY QUOTE SAYS MS. MOORE THIRTY NINE YEARS OLD WHO IS UNSURE WHAT HER NEXT CAREER MOVE WILL BE I'M NOT RESIGNING TO PURSUE PERSONAL INTERESTS' OR WHATEVER THEY SAY THE SHARP TONGUED MS. MOORE HELPED DEVELOP THE MARKET FOR DIP FINANCING WHICH ARE LOANS USED BY COMPANIES THAT ENTER INTO BANKRUPTCY PROTECTION WITH MS. MOORE'S HELP CHEMICAL WON THE LION'S SHARE OF THE BUSINESS WHEN BANKRUPTCIES WERE SOARING A FEW YEARS AGO ODDLY ENOUGH LENDING TO COMPANIES IN BANKRUPTCY IS ONE OF THE MOST ATTRACTIVE TYPES OF FINANCING FOR BANKS BECAUSE THE LOANS CARRY FAT FEES HIGH INTEREST RATES AND ARE THE FIRST TO BE PAID OFF WHEN THE BORROWER EMERGES FROM BANKRUPTCY THE MARKET BECAME A HUGELY PROFITABLE NICHE BUSINESS IN MANY CASES THE LOANS ARE NOT EVEN FULLY DRAWN DOWN BUT USED AS AN INSURANCE POLICY FOR VENDORS AND SUPPLIERS THE BANK NEVER LOST A PENNY NOT ONE RED CENT BOASTS ARTHUR NEWMAN A PARTNER AT THE BLACKSTONE GROUP AND MS. MOORE'S FORMER BOSS AT CHEMICAL I THINK THAT DARLA DID AN OUTSTANDING JOB AS THE DIP QUEEN OF AMERICA WHILE SOME BANKS LOANED MONEY TO COMPANIES UNDER BANKRUPTCY PROTECTION AS PART OF THEIR EXISTING RELATIONSHIPS CHEMICAL WAS AMONG THE FIRST TO SET UP A UNIT DEVOTED SOLELY TO COMPANIES THAT ENTER INTO BANKRUPTCY MS. MOORE'S FIRST BIG TRANSACTION WAS TEXACO INCORPORATED'S BANKRUPTCY IN NINETEEN EIGHTY SEVEN WHEN THE COMPANY NEEDED A SEVEN HUNDRED FIFTY MILLION DOLLAR LOAN SHE BECAME VERY CLOSE WITH THE COMMUNITY OF BANKRUPTCY LAWYERS AND ADVISERS WHO OFTEN RECOMMENDED THAT CLIENTS CHOOSE CHEMICAL WHEN A COMPANY IS HEADING INTO BANKRUPTCY THE FIRST CALL YOU MAKE IS TO DARLA SAID ROBERT MILLER A BANKRUPTCY ATTORNEY QUOTE SHE BECAME THE STANDARD IN THE INDUSTRY QUOTE HER CLIENTS READ LIKE THE WHO'S WHO OF BANKRUPTCY INCLUDING ALLEGHENY INTERNATIONAL REVCO D. S. INCORPORATED PUBLIC SERVICE OF NEW HAMPSHIRE ALLIED STORES CORPORATION FEDERATED DEPARTMENT STORES AMONG OTHERS IN NINETEEN NINETY THE BANK MADE ONE POINT SIX BILLION DOLLARS IN DIP LOANS HER GROUP WAS SAID TO EARN CLOSE TO THIRTY MILLION DOLLARS THAT YEAR SHE WAS AT THE FOREFRONT OF SELLING A NEW PRODUCT FOR A COMMERCIAL BANK THAT EXPLODED SAID MR. NEWMAN SHE DEVELOPED A REPUTATION OF TURNING AROUND ON A DIME AND BEING ABLE TO FOLLOW THROUGH WITH ACTUAL COMMITMENTS OF COURSE SHE HAD PLENTY OF HELP INCLUDING THE COMMITMENT BY SENIOR MANAGEMENT MS. MOORE ALSO ATTRIBUTES HER SUCCESS TO THE BANK'S ABILITY TO COMMIT FUNDS AND SYNDICATE THEM TO OTHER BANKS WITHOUT CHEMICAL'S SYNDICATION DEPARTMENT MS. MOORE WOULDN'T HAVE BEEN ABLE TO WRITE SUCH BIG CHECKS IN APRIL NINETEEN NINETY ONE MS. MOORE STUNNED CHEMICAL BY RESIGNING TO WORK FOR MANUFACTURERS HANOVER CORPORATION FOR WHAT PEOPLE CLOSE TO THE BANK SAID WAS OVER ONE MILLION DOLLARS THREE MONTHS LATER THE TWO BANKS ANNOUNCED A MERGER AND SHE BECAME HEAD OF THE COMBINED UNIT'S GROUP BUT AMID A DECLINE IN BANKRUPTCIES LAST YEAR MS. MOORE GAVE UP THE DIP BUSINESS AND BEGAN BUILDING A RETAILING INDUSTRY SPECIALTY GROUP HER LAST BIG DIP LOAN WAS A SIX HUNDRED MILLION DOLLAR FINANCING FOR R. H. MACY AND COMPANY PEOPLE WHO KNOW HER SAY SHE WAS PROBABLY GETTING BORED WITH THE HUMDRUM NATURE OF HER NEW POSITION MS. MOORE SAYS SHE'S UNSURE WHAT SHE WILL DO AFTER A COUPLE OF MONTHS BUT I NEED TO DO SOMETHING OF AN ENTREPRENEURIAL NATURE THAT COULD INCLUDE THE PURCHASE OF A COMPANY TO BUILD OR DOING ADVISORY WORK SHE SAID MS. MOORE AND HER HUSBAND ARE SOMETHING OF A POWER COUPLE IN NEW YORK CIRCLES SHE IS MARRIED TO RICHARD RAINWATER A SUCCESSFUL TEXAS INVESTOR FORMERLY ASSOCIATED WITH THE BASS BROTHERS THE PEASANTS OF CHIAPAS HAVE LAID CLAIM TO ONE OF THE MOST FAMOUS NAMES IN MEXICAN HISTORY EMILIANO ZAPATA TO RALLY SUPPORT FOR THEIR UPRISING IN THAT SOUTHERN STATE BUT THAT DOESN'T SIT WELL HERE IN CUAUTLA A TOWN JUST OVER THE MOUNTAINS FROM MEXICO CITY WHERE THE REVOLUTIONARY GENERAL SPENT MUCH OF HIS LIFE AND WHERE PEOPLE THINK THEY KNOW A THING OR TWO ABOUT THE IDEALS KNOWN AS ZAPATISMO MATEO ZAPATA ONE OF THE GENERAL'S THREE SURVIVING CHILDREN SITS IN AN UNLIT OFFICE SMOKING A CIGARETTE BARELY VISIBLE IN THE SHADOWS MR. ZAPATA NOW SEVENTY SEVEN YEARS OLD WAS JUST ONE AND A HALF WHEN HIS FATHER WAS ASSASSINATED HE REMEMBERS WELL THE STRUGGLES HIS FAMILY MEMBERS FACED AS THEY TRIED TO PRESERVE THEIR FATHER'S LEGACY OF RETURNING SEIZED LAND TO THE PEASANTS THE ZAPATA FAMILY GREW UP POOR BECAUSE ONE OF ZAPATA'S RIVALS STOLE ALL OF THEIR BELONGINGS THEY EVEN HAD TO GIVE UP THE FAMILY NAME FOR SEVERAL YEARS TAKING A RELATIVE'S NAME CABALLERO FOR FEAR THAT SOME REVOLUTIONARY GENERAL WOULD TRACK THEM DOWN AND KILL THE CHILDREN TOO MR. ZAPATA SAYS HE FEELS THAT HE AND SOME ASSOCIATES NOT THE CHIAPAS REBELS REPRESENT THE CONTINUATION OF HIS FATHER'S WORK MR. ZAPATA ADMINISTERS PENSIONS PAID TO VETERANS OF THE REVOLUTION OF WHOM THERE ARE STILL A HANDFUL EVEN THOUGH THE REVOLUTION ENDED MORE THAN SEVENTY FIVE YEARS AGO HE HAS ALSO PUT TOGETHER SOMETHING CALLED THE PLAN DE AYALA WHICH HOPES TO RESTORE LAND TO PEASANTS HE OPERATES OUT OF A SMALL ADOBE BUILDING THAT SAYS QUOTE ZAPATISMO INSTITUTE QUOTE ON THE SIDE OR WOULD IF THE CRACKING OF THE PAINT HADN'T MADE THE FULL NAME IMPOSSIBLE TO MAKE OUT BUT HE REFUSES TO TAKE MONEY FROM THE GOVERNMENT WHICH HE CONSIDERS TO BE UNDEMOCRATIC REFERRING TO ONE OF HIS FATHER'S SLOGANS LAND WATER JUSTICE AND LAW MR. ZAPATA SAYS MANY OF US HAVE LAND NOW AND MANY OF US HAVE WATER BUT WHERE IS THE JUSTICE AND WHERE IS THE LAW DESPITE HIS DISTASTE FOR THE GOVERNMENT MR. ZAPATA SAYS THAT THE SORT OF VIOLENCE GOING ON IN CHIAPAS BELONGS TO ANOTHER ERA AND THAT ZAPATISMO HAS TURNED AWAY FROM BLOODSHED I THINK THIS MOVEMENT IN CHIAPAS WRONGLY TOOK THE NAME OF THE ZAPATISTAS HE SAYS BECAUSE FOR ME ZAPATISMO IS PROTECTING THE PEOPLE NOT ONLY GIVING LAND BACK TO PEOPLE BUT CARING FOR PEOPLE A FEW BLOCKS AWAY HIS SEVENTY NINE YEAR OLD SISTER ANITA AGREES THE MOVEMENT IN CHIAPAS HAS NOTHING TO DO WITH ZAPATISMO SAYS ANITA WHO LOOKS EXACTLY LIKE HER FIERCE FATHER EXCEPT FOR THE ADDITION OF CONSIDERABLE BLUSH AND THE ABSENCE OF HIS BUSHY MUSTACHE THEY TOOK THE NAME JUST TO CREATE AN IMPACT WITH THE INDIGENOUS PEOPLE BUT I DON'T AGREE WITH THE VIOLENCE AND ARMS IT'S BETTER TO TALK WHILE MATEO STRUGGLES WITH THE LAND ISSUE THOUGH ANITA WHO WAS ONCE A POLITICAL LEADER IN THE AREA NOW RUNS A SMALL CAFE THE WALLS ARE DECORATED WITH PICTURES OF HER FATHER THE TWO DISAGREE ON THE FUTURE OF ZAPATISMO HE SAYS THAT THE MOVEMENT WILL CONTINUE AND THAT HIS SISTER HAS SOLD OUT SHE SUPPORTS THE CURRENT GOVERNMENT AND SAYS SHE THINKS ZAPATISMO WILL FADE AS ITS ADHERENTS CONTINUE TO DIE OFF BOTH MATEO AND ANITA FIND IT ODD THAT MORE GROUPS HAVEN'T TRIED TO USE THE ZAPATA NAME OVER THE YEARS THEY SAY THE ONLY ORGANIZED GROUP THEY CAN REMEMBER USING THE NAME WAS A BAND TWENTY YEARS AGO CALLED THE REVOLUTION OF EMILIANO ZAPATA IT SANG SYRUPY ROMANTIC BALLADS PRESIDENT BILL CLINTON GAVE HIS FELLOW NATO SUMMITEERS GOOD ADVICE MONDAY NIGHT WHEN HE WARNED THEM NOT TO THREATEN THE SERBS UNLESS THEY WERE WILLING TO BACK UP THE THREATS WITH ACTION SPEAKING AS A MAN WHO KNOWS A FEW THINGS ABOUT CREDIBILITY HE SAID THAT QUOTE FAILURE TO ACT ON PROMISES OF ACTION WILL HAVE GREAT RAMIFICATIONS IN THE FUTURE IN OTHER CONTEXTS QUOTE ONLY EVENTS WILL SHOW WHETHER THE OTHER FIFTEEN NATIONAL LEADERS TOOK THE WARNING TO HEART OR FOR THAT MATTER WHETHER THE PRESIDENT WAS COUNSELING ACTION OR INACTION THERE WAS A CERTAIN AMBIGUITY SUGGESTING THAT MR. CLINTON MIGHT NOT HAVE BEEN KEEN ON ISSUING ANY THREATS AT ALL THE UPSHOT HOWEVER WAS A WARNING IN YESTERDAY'S FINAL COMMUNIQUE OF AIR STRIKES TO PREVENT THE STRANGULATION OF SARAJEVO THE SAFE AREAS AND OTHER THREATENED AREAS OF BOSNIA HERZEGOVINA THE LEADERS ORDERED UP PLANS TO END SERBIAN INTERFERENCE WITH THE ROTATION OF U. N. TROOPS IN THE BESIEGED ENCLAVE OF SREBRENICA AND TO SECURE THE OPENING OF THE TUZLA AIRPORT TO RENEWED MERCY FLIGHTS BUT AFTER SOUNDING TOUGH THE SUMMITEERS REMINDED EVERYONE THAT ANY FINAL DECISION WILL BE IN THE HANDS OF WORLD COMMANDER IN CHIEF BOUTROS BOUTROS GHALI AT THE U. N. RUSSIA HAS BEEN PROTECTIVE OF THE SERBS ON THE SECURITY COUNCIL SO BILL CLINTON WILL HAVE TO TALK TO BORIS YELTSIN ABOUT THAT THIS WEEK CANADA'S NEW LIBERAL PREMIER JEAN CHRETIEN SIGNED THE COMMUNIQUE WITHOUT ENTHUSIASM IN PART BECAUSE BOMBING MIGHT ENDANGER CANADIAN PEACEKEEPING TROOPS THE SERBS NO DOUBT WILL MAKE THEIR OWN JUDGMENTS ABOUT THIS LATEST OF MANY THREATS BUT THEY WILL BE MORE INFLUENCED IN THEIR ACTIONS BY EVENTS ON THE GROUND INCLUDING THE SMALL SIGNS OF IMPROVING STRENGTH IN THE BOSNIAN MUSLIM FORCES WHATEVER HAPPENS NEXT WE HAVE SOME SERIOUS DOUBTS ABOUT NATO'S LONG TERM SHAPE THE ALLIANCE MAY BE HEADING FOR GREATER FRAGMENTATION AS THE JOURNAL'S PETER GUMBEL REPORTED YESTERDAY THE U. S. HAS YIELDED TO FRANCE'S AMBITIONS FOR MORE INDEPENDENCE OF ACTION FOR EUROPE WITHIN THE ALLIANCE FRANCE WANTS TO FULFILL THE MAASTRICHT TREATY'S GOAL OF GREATER POLITICAL UNITY BY HAVING THE WESTERN EUROPEAN UNION W. E. U. TAKE GREATER RESPONSIBILITY FOR EUROPE'S DEFENSE AND SEEMS TO HAVE WON ITS POINT IN YESTERDAY'S COMMUNIQUE FRANCE'S RATHER CONTRADICTORY GOAL IS TO WIN MORE POWER FOR ITSELF WHILE KEEPING THE AMERICANS ON HAND TO DO ANY SERIOUS FIGHTING MAYBE IT WAS HISTORICALLY INEVITABLE THAT THE U. S. FIFTY YEARS AFTER D. DAY AND THREE YEARS AFTER THE END OF THE COLD WAR WOULD BE TURNING OVER TO EUROPE MORE RESPONSIBILITY FOR ITS OWN DEFENSE YESTERDAY'S COMMUNIQUE CALLED FOR GREATER FLEXIBILITY OF COMMAND BETWEEN NATO AND THE W. E. U. PROGRESS BUT SOME MIGHT WONDER AT THE WISDOM OF DIVIDED COMMAND WHETHER MR. CLINTON HAS GIVEN MUCH SERIOUS THOUGHT TO THE FUTURE OF THE WESTERN ALLIANCE IS NOT ENTIRELY CLEAR HE AND HIS FOREIGN POLICY TEAM WANTED A VICTORY TO DISPLAY AT THE SUMMIT HENCE THE HEAVY PRESSURE TO GET UKRAINE TO RELINQUISH ITS NUCLEAR WEAPONS BUT THE PRESIDENT'S ANNOUNCEMENT MONDAY OF SUCH AN AGREEMENT MAY HAVE BEEN PREMATURE THE UKRAINIAN PARLIAMENT SEEMS UNWILLING TO AGREE TO WHATEVER PRESIDENT LEONID KRAVCHUK HAS PROMISED A REALITY MR. CLINTON HAD TO ACKNOWLEDGE AT HIS PRESS CONFERENCE YESTERDAY THERE WILL BE MORE PRESSURE ON UKRAINE FROM BOTH THE U. S. AND RUSSIA LATER THIS WEEK TO BE SURE THERE IS NOT MUCH ORDER IN THE WORLD WHERE MR. CLINTON AND HIS NATO ALLIES ARE CONDUCTING FOREIGN POLICIES IN THE POST COLD WAR WORLD THERE STILL REMAINS MUCH INTELLECTUAL CONFUSION OVER THE MORE AMBIGUOUS CHALLENGES OF A BOSNIA UNTIL THESE PROBLEMS ARE SORTED OUT THERE UNDOUBTEDLY WILL BE MANY SUBTLETIES IN THEIR POLITICAL MOVES WE HOPE HOWEVER THAT THE NATO LEADERS DO NOT BECOME COMFORTABLE WITH SUCH SUBTLETY THE WORLD'S MOST TROUBLED CORNERS ARE CLEARLY CRYING OUT FOR A CLEARER VISION THAN THEY HAVE SO FAR BEEN OFFERED HOWARD MORGAN FORTY EIGHT YEARS OLD WAS ELECTED A DIRECTOR OF THIS SOFTWARE CONCERN INCREASING ITS BOARD'S SIZE TO SIX MEMBERS MR. MORGAN IS PRESIDENT OF ARCA GROUP INCORPORATED A VILLANOVA PENNSYLVANIA CONSULTING AND INVESTMENT MANAGEMENT CONCERN JAPAN'S ECONOMIC DOWNTURN IS LEADING AN INCREASING NUMBER OF COMPANIES TO CONSIDER ACTION CONSIDERED RADICAL BY THE NATION'S BUSINESS ESTABLISHMENT MERGER IN RECENT MONTHS SEVERAL HIGH PROFILE CORPORATE COMBINATIONS HAVE GRABBED HEADLINES IN JAPAN AS COMPANIES ALLY THEMSELVES TO INCREASE THEIR SIZE AND MARKETING POWER TO BOOST SAGGING PROFITS MOREOVER JAPAN'S BUREAUCRATS NOW ARE WORKING BOTH PUBLICLY AND PRIVATELY TO MAKE MERGERS EASIER THEY SEE MERGERS AS PART OF A BROAD RESTRUCTURING TO MAKE JAPAN'S CORPORATE SECTOR MORE COMPETITIVE AT HOME AND ABROAD IN THE LATEST SIGN OF TACIT GOVERNMENT BACKING FOR SUCH CORPORATE RESTRUCTURING JAPAN'S FAIR TRADE COMMISSION ON TUESDAY RELEASED SPECIFIC MEASURES EFFECTIVE FEBRUARY FIRST TO CUT RED TAPE AND ADMINISTRATIVE HURDLES TO CORPORATE COMBINATIONS IN THE PAST EVEN MERGERS BY SMALL COMPANIES IN JAPAN REQUIRED ELABORATE AND COSTLY PAPERWORK AND PROCEDURES THE F. T. C. IS ELIMINATING MOST OF THE ADMINISTRATIVE HEADACHE FOR MERGERS VALUED AT AS MUCH AS TEN BILLION YEN EIGHTY NINE MILLION DOLLARS UP FROM AN EARLIER THRESHOLD OF FIVE BILLION YEN THE MOVE IS AIMED AT HELPING THE AGENCY JAPAN'S ANTITRUST WATCHDOG TO HANDLE THE RELATIVELY HIGH NUMBER OF MERGER APPLICATIONS THUS FAR THIS DECADE ANNUAL MERGER FILINGS WITH JAPAN'S F. T. C. HAVE DOUBLED IN THE PAST DECADE TO MORE THAN TWO THOUSAND IN NINETEEN NINETY TWO THE LATEST YEAR FOR WHICH FIGURES ARE AVAILABLE AND WITHIN THE PAST COUPLE OF MONTHS TWO GIANT MERGERS HAVE BEEN ANNOUNCED MITSUBISHI KAISEI CORPORATION IS MERGING WITH MITSUBISHI PETROCHEMICAL COMPANY IN A TRANSACTION THAT WILL CREATE JAPAN'S BIGGEST CHEMICALS COMPANY WITH A MARKET CAPITALIZATION OF ONE HUNDRED FORTY BILLION YEN AND ONODA CEMENT COMPANY IS COMBINING WITH CHICHIBU CEMENT COMPANY TO BECOME JAPAN'S LARGEST CEMENT MAKER WITH A MARKET CAPITALIZATION OF THIRTY FOUR POINT SEVEN BILLION YEN OFFICIALS AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY WELCOME SUCH COMBINATIONS WHICH THEY BELIEVE WILL CREATE STRONGER NATIONAL CHAMPIONS IN KEY INDUSTRIES QUOTE AMID THE BROADER NEED TO RESTRUCTURE OVER THE COMING YEARS MERGERS ARE GOING TO BE ONE LARGE OPTION QUOTE A MINISTRY OFFICIAL SAID HOWEVER REGULATORS AND BUSINESSMEN ALIKE WARN THAT JAPAN HAS A LONG WAY TO GO BEFORE MERGERS PROVIDE THE QUICK BOOST TO THE BOTTOM LINE THAT THEY OFTEN PROVIDE IN OTHER COUNTRIES THAT'S BECAUSE IN JAPAN IT'S MORE TIME CONSUMING AND OFTEN MORE DIFFICULT TO CUT JOBS AND GAIN OTHER EFFICIENCIES FROM MERGERS THAN IN OTHER COUNTRIES MOST JAPANESE MERGERS STILL ARE FRIENDLY AFFAIRS OFTEN WITHIN A SINGLE KEIRETSU GROUP OF ASSOCIATED COMPANIES OUTSIDE OF THAT THE WHOLE CONCEPT OF TRANSFERRING OWNERSHIP OF A CORPORATION HAS OFTEN BEEN VIEWED WITH DISDAIN IN THE JAPANESE LANGUAGE THE TWO WORDS MOST OFTEN USED TO DESCRIBE CORPORATE ACQUISITIONS CAN ALSO MEAN HIGHJACK AND BRIBE COMBINING TWO JAPANESE COMPANIES IS LIKE TAKING TWO FAMILIES THAT HAVE NOTHING TO DO WITH EACH OTHER OR WERE FORMERLY COMPETITORS AND ASKING THEM TO LIVE IN PEACE IN THE SAME HOUSE SAYS KEN MOROI CHICHIBU CEMENT'S CHAIRMAN MANAGING SUCH A COMPANY POSES CHALLENGES IN THE BANKING BUSINESS WHICH HAS SEEN SEVERAL HUGE MERGERS IN RECENT YEARS SOME OF THE COMBINED BANKS HAVE KEPT THREE PERSONNEL DEPARTMENTS ONE FROM EACH ORIGINAL BANK AND ONE FOR THE COMBINED GROUP THE MERGING CEMENT COMPANIES WILL TRY TO REDUCE STAFF USING THE TRADITIONAL JAPANESE APPROACH HIRING CUTBACKS AND VOLUNTARY RETIREMENTS THROUGH SUCH MEASURES THE COMBINED COMPANY HOPES TO TRIM ONE THOUSAND OF ITS CURRENT FOUR THOUSAND WORKERS WITHIN THREE YEARS MR. MOROI SAID HIS NEW COMPANY WILL PROMOTE EMPLOYEES ONLY ON THE BASIS OF THEIR CONTRIBUTION TO THE COMPANY RATHER THAN ON SENIORITY MARKING A MAJOR BREAK WITH TRADITION AND MR. MOROI BELIEVES OTHER MANAGERS ARE GOING TO HAVE TO FACE SIMILARLY TOUGH DECISIONS IN THE MONTHS AND YEARS TO COME MERGERS HE SAID ARE GOING TO BE AN INCREASINGLY LARGE PART OF THE JAPANESE ECONOMIC LANDSCAPE UNLESS THEY FIND MERGER PARTNERS HE SAID MANY COMPANIES MAY HAVE A TOUGH TIME SURVIVING NOW MAY NOT BE THE BEST OF TIMES FOR AN INSURANCE COMPANY TO JOIN THE STOCK MARKET INSURANCE STOCKS HAVE NOSED DOWN AS MUCH AS THIRTY PERCENT IN THE PAST QUARTER LARGELY BECAUSE INTEREST RATES HAVE INCHED UP AND WITH THE CLINTON ADMINISTRATION PREDICTING A FURTHER MODERATE UPTICK IN SHORT TERM RATES IT WOULD SEEM INTEREST RATE SENSITIVE STOCKS SUCH AS THOSE FOR INSURANCE COMPANIES FACE CONTINUED LETHARGY YET INTO THIS WEAKNESS COMES A NEW PLAYER WESTERN NATIONAL THE LARGEST SUBSIDIARY OF HOLDING COMPANY CONSECO AND THE HOUSTON PARENT OF AMARILLO'S WESTERN NATIONAL LIFE INSURANCE CONSECO OF CARMEL INDIANA PLANS TO DIVEST WESTERN NATIONAL IN EARLY FEBRUARY OFFERING THIRTY POINT FOUR MILLION SHARES WESTERN NATIONAL WILL OFFER AN ADDITIONAL TWO MILLION SHARES AT AN EXPECTED SHARE PRICE OF FIFTEEN DOLLARS TO SEVENTEEN DOLLARS THE DEAL COULD BE WORTH AS MUCH AS FIVE HUNDRED FIFTY MILLION DOLLARS THE LARGEST INITIAL PUBLIC OFFERING IN TEXAS SINCE JANUARY NINETEEN EIGHTY NINE BUT HOW WELL WILL AN INSURANCE STOCK FARE IN A MARKET WHERE THE CONSENSUS HOLDS INTEREST RATES ARE HEADED NORTH ALTHOUGH MOST ANALYSTS FOLLOWING THIS COMPANY CAN'T TALK BECAUSE THEIR FIRMS ARE HELPING TO UNDERWRITE THE OFFERING THOSE WHO CAN COMMENT SAY WESTERN NATIONAL SHOULD FARE QUITE WELL AS LONG AS INTEREST RATES DON'T RISE TOO QUICKLY A STEADY RISE HOWEVER COULD PROVE BENEFICIAL WESTERN NATIONAL IS A MARKETER OF ANNUITY PRODUCTS THE POPULAR TAX DEFERRED INVESTMENTS USED MAINLY FOR RETIREMENT PLANNING AS ONE OF THE FEW REMAINING TAX SHELTERS ANNUITIES HAVE GAINED A BIG FOLLOWING PREMIUMS NATIONWIDE FOR NINETEEN NINETY THREE ARE PROJECTED TO HAVE TOPPED SIXTY ONE POINT TWO BILLION DOLLARS UP EIGHTY ONE PERCENT FROM THIRTY THREE POINT EIGHT BILLION DOLLARS SOLD IN NINETEEN EIGHTY SEVEN ACCORDING TO KENNETH KEHRER ASSOCIATES THE PRINCETON N. J. PUBLISHER OF THE NEWSLETTER OF THE BANK INSURANCE INDUSTRY BUT WESTERN NATIONAL HAS LIMITED ITSELF TO FIXED ANNUITY PRODUCTS WHILE IN RECENT YEARS IT HAS BEEN THE VARIABLE ANNUITY SECTOR OF THE MARKET THAT HAS TAKEN OFF AS INVESTORS WENT IN SEARCH OF HIGHER RETURNS AMID LOW INTEREST RATES AS A RESULT ANNUAL ANNUITY PREMIUMS FUNNELING INTO THE COMPANY FELL TO ABOUT SIX HUNDRED MILLION DOLLARS IN NINETEEN NINETY THREE FROM A HISTORIC HIGH OF ONE POINT TWO SEVEN BILLION DOLLARS IN NINETEEN NINETY ONE NOW THE COMPANY HOPES TO GET BACK ON TRACK PLANNING TO OFFER VARIABLE ANNUITY PRODUCTS THIS YEAR AND IT'S IN A GOOD POSITION TO REGAIN LOST INVESTORS BECAUSE IT SELLS THROUGH A HOT DISTRIBUTOR BANKS BANK SOLD ANNUITIES ARE THE FASTEST GROWING SEGMENT OF THE MARKET MR. KEHRER PROJECTS IT AT FORTY BILLION DOLLARS BY THE YEAR TWO THOUSAND UP FROM TWELVE POINT EIGHT BILLION DOLLARS CURRENTLY ROUGHLY THREE QUARTERS OF WESTERN NATIONAL'S ANNUAL PREMIUMS COME FROM THIS NICHE THE COMPANY ALSO MARKETS ITS PRODUCTS TO EMPLOYEES OF NONPROFIT AGENCIES SUCH AS SCHOOL SYSTEMS AND HOSPITALS INVESTING IN FOUR HUNDRED THREE B. PLANS SIMILAR TO FOUR HUNDRED ONE K. RETIREMENT ACCOUNTS ANALYSTS ARE ENTHUSIASTIC ABOUT WESTERN NATIONAL'S PROSPECTS THE ANNUITY BUSINESS IS EXPECTED TO GROW FURTHER AGING BABY BOOMERS NOW HITTING THEIR PRIME SAVINGS YEARS ARE EXPECTED TO PICK UP BILLIONS OF DOLLARS WORTH OF ANNUITY PRODUCTS AS THEY PREPARE FOR RETIREMENT AND MOST ANALYSTS DON'T SEE A RAPID ESCALATION IN INTEREST RATES IF INTEREST RATES WERE TO RISE SHARPLY THE COMPANY WOULD BE SEVERELY BURDENED AS INVESTORS DUMP THEIR CURRENT LOW RATE ANNUITIES IN SEARCH OF HIGHER RETURNS SUCH AN EXODUS WOULD FORCE WESTERN NATIONAL TO SELL LOW RATE BONDS IN WHICH IT HAS INVESTED INTO A MARKETPLACE WHERE THOSE BONDS ARE WORTH LESS BUT IF INTEREST RATES ASCEND GRADUALLY AS IS EXPECTED WESTERN NATIONAL WILL BENEFIT BY REPLACING LOW RATE SHORT TERM BONDS THAT COME DUE WITH HIGHER RATE BONDS INVESTORS' INTEREST IN ANNUITY PRODUCTS IS REFLECTED IN THE GROWTH OF WESTERN NATIONAL'S ASSETS IN RECENT YEARS TOTAL ASSETS AT EIGHT POINT SIX BILLION DOLLARS HAVE MORE THAN DOUBLED SINCE NINETEEN EIGHTY EIGHT AND ALTHOUGH PREMIUMS ARE DOWN NET INCOME IS UP AS A RESULT OF THE OVERALL GROWTH IN WESTERN NATIONAL'S INVESTED ASSETS WESTERN NATIONAL PROFITS BY MAINTAINING A SPREAD BETWEEN WHAT INVESTMENTS EARN AND THE RATE OF RETURN IT GUARANTEES TO ANNUITY HOLDERS NET INCOME FOR NINETEEN NINETY THREE IS EXPECTED AT ONE HUNDRED TWENTY FIVE MILLION DOLLARS OR ABOUT TWO DOLLARS A SHARE COMPARED WITH ONE HUNDRED TWO POINT TWO MILLION DOLLARS FOR NINETEEN NINETY TWO THE OFFERING IS FOR THIRTY TWO POINT FOUR MILLION SHARES BUT CONSECO WILL RETAIN AN ADDITIONAL TWENTY NINE POINT SIX MILLION MEANING SIXTY TWO MILLION SHARES WILL ACTUALLY EXIST BASED ON THE EXPECTED OFFERING PRICE WESTERN NATIONAL'S STOCK WILL COME PUBLIC AT BETWEEN SEVEN POINT FIVE AND EIGHT POINT FIVE TIMES EARNINGS A DISCOUNT TO WHAT MOST ANALYSTS FEEL THE COMPANY IS WORTH QUOTE IN LIGHT OF THE GROWTH THAT'S AHEAD OF THEM THIS IS A COMPANY THAT ULTIMATELY SHOULD TRADE FOR FIFTEEN TIMES EARNINGS QUOTE SAYS RAYMOND L. DIRKS DIRECTOR OF RESEARCH AT RAS SECURITIES NEW YORK ONE ADDITIONAL RISK IS THAT WESTERN NATIONAL IS DEPENDENT ON ONE PRODUCT NEARLY NINETY EIGHT PERCENT OF THE PREMIUMS COLLECTED IN THE FIRST NINE MONTHS OF NINETEEN NINETY THREE WAS TIED TO ANNUITIES THE REMAINDER CAME FROM UNDERWRITING ABOUT TWENTY FIVE THOUSAND LIFE INSURANCE POLICIES WESTERN NATIONAL IS SEEKING TO BROADEN ITS OFFERINGS ONCE IT IS SPUN OFF ASIDE FROM INTRODUCING VARIABLE ANNUITIES THE COMPANY WANTS TO INCREASE ITS LIFE INSURANCE UNDERWRITING SEEMS INVESTORS ARE USING GOOD NEWS OR NO NEWS TO TAKE SOME PROFITS THESE DAYS MEN'S WEARHOUSE THE HOUSTON CLOTHIER AND ONE OF NINETEEN NINETY THREE'S TOP PERFORMERS DROPPED NEARLY TEN PERCENT FOR THE WEEK ON NEWS THAT TOTAL SALES FOR DECEMBER INCREASED MORE THAN FORTY TWO PERCENT WHILE SALES AT STORES OPEN AT LEAST A YEAR ROSE NEARLY EIGHTEEN PERCENT LIKEWISE PANCHO'S MEXICAN BUFFETS THE FORT WORTH EATERY THAT HAS REVAMPED ITS STORES AND BEEFED UP ITS MENU SHED NINE POINT TWO PERCENT AFTER REPORTING DECEMBER SALES IN RESTAURANTS OPEN A YEAR OR MORE LEAPED SEVENTEEN PERCENT ONE OF THAT COMPANY'S BEST SHOWINGS DALLAS'S FIRST U. S. A. WHICH IN NINETEEN NINETY THREE CLIMBED FROM TWENTY DOLLARS TO THE MID SIXTY DOLLARS BEFORE SPLITTING TWO FOR ONE IN NOVEMBER DROPPED NEARLY ELEVEN PERCENT LAST WEEK THERE WAS NO APPARENT NEWS TO SPARK THE FALL COMPUCOM SYSTEMS DALLAS GAINED ONE DOLLAR AND TWENTY FIVE CENTS OR THIRTY ONE PERCENT AFTER ANNOUNCING THAT UNAUDITED REVENUE FOR NINETEEN NINETY THREE TOPPED ONE BILLION DOLLARS A RECORD AND A FORTY PERCENT INCREASE FROM NINETEEN NINETY TWO THE COMPUTER MARKETER NOTED THAT SINCE NINETEEN EIGHTY NINE IT HAS POSTED AN ANNUAL GROWTH RATE OF THIRTY NINE PERCENT THOMAS GROUP AN IRVING PROVIDER OF MANAGEMENT SERVICES DROPPED SEVENTY FIVE CENTS AND TRADED AT SIX TIMES ITS AVERAGE DAILY VOLUME ON NEWS THAT IT EXPECTS AN EARLY TERMINATION OF ITS CONTRACT WITH REVLON CONSUMER PRODUCTS ONE OF THREE CLIENTS THAT CONTRIBUTE MORE THAN TEN PERCENT OF THE COMPANY'S REVENUE THOMAS GROUP SAID IN A RELATED ACTION IT SUED REVLON FOR COLLECTION OF THREE MILLION DOLLARS DUE FOR INCENTIVES EARNED FROM SERVICES PROVIDED TO REVLON THOMAS GROUP OFFICIALS SAID REVLON IS SEEKING AN EARLY TERMINATION OF THE CONTRACT BECAUSE REVLON DOESN'T WANT TO HONOR THE INCENTIVE PAYMENTS NINE MONTHS ENDED SEPTEMBER THIRTIETH NINETEEN NINETY THREE LEHMAN BROTHERS INCORPORATED THE INVESTMENT BANKING UNIT OF THIS TRAVEL AND FINANCIAL SERVICES COMPANY NAMED JOHN L. CECIL THIRTY NINE YEARS OLD CHIEF ADMINISTRATIVE OFFICER PREVIOUSLY A DIRECTOR OF MCKINSEY AND COMPANY MR. CECIL SUCCEEDS ROBERT SHAPIRO WHO CONTINUES AT THE COMPANY AS CHAIRMAN OF ITS ADMINISTRATIVE COMMITTEE WHILE PROPONENTS OF HEALTH CARE REFORM CLAMOR FOR CUTS IN RED TAPE AS A WAY TO HELP CONTROL THE NATION'S MEDICAL BILLS LARGER SAVINGS MAY BE AVAILABLE IN THE WAY HOSPITALS MANAGE THEIR PATIENTS ACCORDING TO A NEW STUDY THE REPORT BY HCIA INCORPORATED A HEALTH CARE INFORMATION CONCERN IN BALTIMORE INDICATES THAT HOSPITALS IN THE U. S. COULD SAVE AS MUCH AS TWELVE BILLION DOLLARS A YEAR BY FOLLOWING THE PRACTICE PATTERNS OF HEALTH CARE FACILITIES IN MINNEAPOLIS AND SAINT PAUL MINNESOTA ONE OF THE MOST AGGRESSIVELY MANAGED HEALTH CARE MARKETS IN THE COUNTRY THERE HOSPITAL PATIENTS ARE DISCHARGED ABOUT ONE AND ONE HALF DAYS SOONER ON AVERAGE THAN IN HOSPITALS ELSEWHERE IN THE U. S. MOREOVER THOSE FACILITIES PRODUCE OUTCOMES IN TERMS OF MORTALITY AND SURGICAL INFECTION RATES THAT ARE EQUAL TO OR BETTER THAN RATES AT HOSPITALS THROUGHOUT THE COUNTRY USING MINNEAPOLIS SAINT PAUL AS A BENCHMARK AND COMPARING MEDICARE DATA FROM HOSPITALS NATIONWIDE HCIA CALCULATED THAT ALMOST TWENTY PERCENT OF PATIENT DAYS IN NINETEEN NINETY TWO WERE CLINICALLY UNWARRANTED IN THE STUDY'S SAMPLE THAT WOULD TRANSLATE TO EXCESS COSTS OF ABOUT TWELVE BILLION DOLLARS ANNUALLY QUOTE WE HEAR MUCH ABOUT ADMINISTRATIVE WASTE IN THE HEALTH CARE INDUSTRY QUOTE SAID ROBERT LEARY VICE PRESIDENT OF RESEARCH AND DEVELOPMENT FOR HCIA BUT THE REALIZABLE SAVINGS ON THE CLINICAL SIDE ARE FAR GREATER AND MORE ATTAINABLE SQUEEZING WASTE AND INEFFICIENCIES FROM THE U. S. MEDICAL SYSTEM IS A CORNERSTONE OF PRESIDENT CLINTON'S PLAN FOR HEALTH CARE REFORM THE SAVINGS IN TURN WOULD BE USED TO FINANCE EXPANDED BENEFITS SOME OF THE CHANGES ENVISIONED BY THE CLINTON TEAM INCLUDE SWITCHING TO A SINGLE REIMBURSEMENT FORM FOR INSURANCE CLAIMS AND SCALING BACK FEDERAL OVERSIGHT OF CLINICAL LABORATORIES THOSE STEPS AND OTHERS THE WHITE HOUSE ESTIMATES COULD PRODUCE SAVINGS OF AS MUCH AS FIFTY BILLION DOLLARS A YEAR BUT SOME HEALTH CARE ECONOMISTS QUESTION WHETHER MR. CLINTON'S PLAN WILL SIMPLY REPLACE EXISTING RED TAPE WITH NEW RED TAPE UNDER THE ADMINISTRATION'S PROPOSAL MOST PEOPLE WOULD EVENTUALLY BUY HEALTH INSURANCE THROUGH LARGE PURCHASING GROUPS RUN BY THE STATES EXPERTS ESTIMATE THERE COULD BE AS MANY AS TWO HUNDRED FIFTY OF THESE REGIONAL ALLIANCES EACH WITH ITS OWN COSTLY BUREAUCRACY DEPENDING ON HOW THE STATES SET THEM UP HOSPITALS IN SEVERAL MARKETS NOTABLY IN FLORIDA OREGON AND SOUTHERN CALIFORNIA ALREADY ARE PUSHING TO STREAMLINE THEIR PRACTICE PATTERNS AND OPERATIONS AND THUS REDUCE CHARGES AND EXPENSES SAID SAAD ALLAWI VICE PRESIDENT OF MERCER MANAGEMENT CONSULTING INCORPORATED IN NEW YORK INDEED IN A SECOND STUDY BY HCIA IN CONJUNCTION WITH MERCER OF THE ONE HUNDRED BEST PERFORMING HOSPITALS IN THE COUNTRY RESEARCHERS FOUND THAT EXPENSES PER ADMISSION AT THE TOP FACILITIES WERE AS MUCH AS FIFTEEN PERCENT LOWER THAN THEIR PEER GROUPS IF ANYTHING MR. ALLAWI SAID CALLS FOR HEALTH CARE REFORM AND COST EFFECTIVE CARE WILL ACCELERATE HOSPITALS' PUSH FOR IMPROVED PERFORMANCE WE'RE GOING TO SEE THESE CHANGES TAKE PLACE MUCH FASTER IN THE NEXT FIVE TO TEN YEARS MERRY GO ROUND ENTERPRISES INCORPORATED THE TROUBLED RETAILER OF YOUTH FASHIONS FILED FOR PROTECTION FROM CREDITORS AFTER FAILING TO WIN CONCESSIONS FROM LENDERS AND ENCOUNTERING DIFFICULTY IN GETTING SHIPMENTS OF SPRING MERCHANDISE FOR ITS STORES THE BANKRUPTCY FILING MADE IN MARYLAND UNDER CHAPTER ELEVEN OF THE FEDERAL BANKRUPTCY CODE FOLLOWS POOR CHRISTMAS SALES FOR DECEMBER A MONTH IN WHICH THE COMPANY MISSED PAYMENTS TO SUPPLIERS AND REPORTED A FISCAL THIRD QUARTER LOSS THAT PLACED IT IN VIOLATION OF CREDIT PACTS THE JOPPA MARYLAND COMPANY WHICH HAS ANNUAL SALES OF ABOUT SEVEN HUNDRED FIFTY MILLION DOLLARS SAID IN AN ANNOUNCEMENT YESTERDAY IT FILED FOR BANKRUPTCY PROTECTION AFTER IT WAS UNABLE TO REACH AN AGREEMENT WITH LENDERS QUOTE TO OBTAIN WAIVERS OF EXISTING COVENANT VIOLATIONS AND TO AMEND OR RESTRUCTURE THE COMPANY'S BORROWING ARRANGEMENTS QUOTE DESPITE INTENSE NEGOTIATIONS WITH ITS BANK AND INSTITUTIONAL LENDERS THE COMPANY WAS UNABLE TO DEVELOP A FINANCIAL RESTRUCTURING PLAN THAT WAS SATISFACTORY TO ALL PARTIES INVOLVED THE COMPANY SAID AT A TIME WHEN RETAILERS ARE STOCKING THEIR STORES WITH CRUCIAL SPRING MERCHANDISE MERRY GO ROUND SAID IT HOPED THE FILING AND PLANNED REORGANIZATION WOULD REGAIN THE FULL CONFIDENCE OF ITS VENDORS AND LEAD TO RECEIVING INVENTORY AT ADEQUATE LEVELS FOR THE SPRING SEASON MERRY GO ROUND WHICH SELLS FASHIONS TO YOUNG MEN AND WOMEN IN ONE THOUSAND FOUR HUNDRED FORTY FIVE STORES IN FORTY FOUR STATES FILED IN U. S. BANKRUPTCY COURT FOR THE DISTRICT OF MARYLAND IN ITS FILING THE RETAILER REPORTED THAT AS OF NOVEMBER TWENTY SEVENTH NINETEEN NINETY THREE IT HAD TOTAL ASSETS OF FOUR HUNDRED SIXTY THREE MILLION DOLLARS AND TOTAL LIABILITIES OF TWO HUNDRED SIXTY FIVE MILLION DOLLARS MERRY GO ROUND'S BANKRUPTCY FILING IS THE SECOND IN A WEEK FROM A RETAILER THAT GREW QUICKLY IN RECENT YEARS BY FOLLOWING FASHIONABLE TRENDS LAST FRIDAY CONRAN STORES INCORPORATED THE ONCE TRENDSETTING HOME FURNISHINGS RETAILER FILED UNDER CHAPTER ELEVEN IN NEW YORK THE FILING BROUGHT YET ANOTHER CHANGE IN MANAGEMENT FOR MERRY GO ROUND WHICH IN RECENT MONTHS DISMISSED SEVERAL OF ITS MERCHANDISING EXECUTIVES ONE OF THE COMPANY'S FOUNDERS AND ITS CHAIRMAN LENNY WEINGLASS HAS ASSUMED THE TITLE OF CHIEF EXECUTIVE MR. WEINGLASS HAD RECENTLY RETURNED TO THE COMPANY'S OPERATIONS TO TAKE OVER ITS MERCHANDISING STRATEGY MICHAEL D. SULLIVAN WHO HAD BEEN CHIEF EXECUTIVE WILL RETAIN THE TITLE OF PRESIDENT ISAAC KAUFMAN REMAINS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ANALYSTS AND INDUSTRY EXECUTIVES HOWEVER WERE NOT IMPRESSED BY MR. WEINGLASS'S RE EMERGENCE MERRY GO ROUND SHOULD GO OUT AND FIND A MERCHANT TO LEAD THE COMPANY SAID PETER SCHAEFFER A PARTNER WITH JOHNSON REDBOOK SERVICE A RETAIL ANALYSIS FIRM THEY NEED SOMEBODY WHO HAS HIS FINGER ON THE PULSE OF FASHION LENNY'S NOT THE GUY ADDED RICHARD POSNER OF CREDIT EXCHANGE INCORPORATED A CREDIT MONITORING AGENCY FOR APPAREL BUSINESSES QUOTE I'M NOT IMPRESSED BY WEINGLASS'S NEW POSITION HE'S OUT OF TOUCH WITH THE MARKET HE DOESN'T HAVE THAT MAGIC TOUCH AND I DON'T BELIEVE HE WILL COME AND SAVE THIS BUSINESS THE RETAILER HAD BEEN HAMMERED IN RECENT MONTHS BY POOR RESULTS AT STORES OPEN A YEAR OR LONGER IN PART BECAUSE OF A SLOWDOWN IN OVERALL APPAREL SALES BUT ANALYSTS ALSO SAID THAT MERRY GO ROUND STORES WHICH ALSO OPERATE UNDER THE NAMES CIGNAL AND CHESS KING FEATURED CLOTHES THAT YOUNG SHOPPERS NO LONGER CONSIDERED HIP UNDER CHAPTER ELEVEN A COMPANY CAN KEEP OPERATING WITHOUT PAYING ITS CREDITORS WHILE IT REORGANIZES THE BANKRUPTCY FILING ACTUALLY PUTS MERRY GO ROUND IN ITS BEST POSITION IN MONTHS BECAUSE THE COMPANY HAS NOT BEEN PAYING SUPPLIERS THE MERCHANT IS SITTING ON A MOUND OF CASH WHICH THE COMPANY SAID YESTERDAY TOTALED NINETY MILLION DOLLARS TYPICAL FOR A RETAIL BANKRUPTCY MERRY GO ROUND SAID IT RECEIVED A COMMITMENT FOR DEBTOR IN POSSESSION FINANCING THAT WILL ALLOW IT GUARANTEE THE SHIPMENT OF SPRING GOODS THE COMPANY SAID IT HAS A COMMITMENT FROM C. I. T. GROUP SLASH FACTORING TO PROVIDE DIP FINANCING IN THE FORM OF A ONE HUNDRED TWENTY FIVE MILLION DOLLAR REVOLVING LINE OF CREDIT INCLUDING A SUBFACILITY FOR THE ISSUANCE OF LETTERS OF CREDIT WHICH IS SUBJECT TO BANKRUPTCY COURT APPROVAL THE COMPANY SAID IT BELIEVES DIP FINANCING ALONG WITH ITS AVAILABLE CASH SHOULD ENABLE IT TO MEET ITS FORESEEABLE FINANCING REQUIREMENTS STILL SOME SUPPLIERS WERE HOPING FOR A BETTER OUTCOME I AM SHOCKED THAT THEY FILED SAID CARL JONES PRESIDENT OF CROSS COLOURS INCORPORATED A LOS ANGELES MAKER OF YOUNG MENS' WEAR THEY WERE TALKING TO US RECENTLY ABOUT A MORATORIUM ON WHAT THEY OWED US HE SAID WE HAVE ORDERS FOR THEM IN HOUSE FOR SPRING BUT WE DIDN'T KNOW WHAT TO DO WITH IT MERRY GO ROUND STOCK HAD BEEN FALLING IN THE LAST YEAR FROM A FIFTY TWO WEEK HIGH OF SEVENTEEN POINT SIX TWO FIVE DOLLARS TO A LOW OF ONE DOLLAR AND FIFTY CENTS YESTERDAY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ITS SHARES STOPPED TRADING AT TWO POINT SIX TWO FIVE DOLLARS UNCHANGED PRIOR TO THE ANNOUNCEMENT OF THE BANKRUPTCY FILING IS SOUTHWEST AIRLINES' C. E. O. HERB KELLEHER GOING HOLLYWOOD THE COLORFUL MR. KELLEHER MAKES HIS PRIME TIME DEBUT NEXT MONTH ON THE N. B. C. SITCOM QUOTE WINGS QUOTE A SHOW THAT CENTERS AROUND THE FOUNDERS OF A STARTUP COMMUTER AIRLINE MR. KELLEHER WAS SCHEDULED TO TAPE THE SHOW LAST NIGHT MR. KELLEHER MET THE WINGS CAST LAST FALL DURING A CHARITY BOWLING TOURNAMENT TO RAISE MONEY FOR ANGEL FLIGHT WHICH PROVIDES FREE AIR TRANSPORTATION FOR PATIENTS IN NEED OF MEDICAL CARE ALTHOUGH SOUTHWEST AIRLINES' TEAM LOST THE TOURNAMENT I THINK THEY CHEATED SAYS MR. KELLEHER ITS BOSS LANDED A WALK ON PART ON THE PROGRAM BUT DON'T THINK THIS IS A CASE OF ART IMITATING LIFE TRUE THE PROGRAM IS ABOUT A COMMUTER AIRLINE AND YES IT'S SCHEDULED TO APPEAR ON VALENTINE'S DAY THE HEART IS A FAVORED SYMBOL OF SOUTHWEST WHICH IS BASED OUT OF LOVE FIELD IN DALLAS BUT IF YOU DOUBT THAT THERE'S A MAJOR DIFFERENCE BETWEEN WINGS AND REAL LIFE CONSIDER THIS THE ALWAYS TALKATIVE MR. KELLEHER ISN'T SCHEDULED FOR A SPEAKING PART WINGS SPOKESMAN PATTY TRIPLETT SAYS MR. KELLEHER LIKELY WILL BE IN THE BACKGROUND MILLING ABOUT IN THE PASSENGER WAITING AREA MS. TRIPLETT HOWEVER SAYS THERE IS A SLIGHT CHANCE THAT THE SHOW'S WRITERS WILL COME UP WITH A LINE OR TWO TO GIVE MR. KELLEHER I HAVE A FEELING HE'S GOING TO TRY TO WEASEL HIS WAY IN MS. TRIPLETT SAYS ONE OF METALLGESELLSCHAFT A. G.'S BIG GERMAN BANK CREDITORS ANNOUNCED ITS OPPOSITION TO A THREE POINT TWO BILLION MARK ONE POINT EIGHT FOUR BILLION DOLLARS RESCUE PACKAGE FOR THE METAL ENGINEERING AND TRADING CONCERN NORDDEUTSCHE LANDESBANK OF HANNOVER REFLECTING RESERVATIONS SHARED BY SOME OTHER CREDITORS BROKE RANKS WITH THE BIG FRANKFURT BANKS AS CREDITORS DEUTSCHE BANK A. G. AND DRESDNER BANK A. G. AND MAJOR STOCKHOLDERS HAVE BEEN LOBBYING METALLGESELLSCHAFT'S MORE THAN ONE HUNDRED CREDITOR BANKS TO APPROVE THE PLAN TODAY BANKING SOURCES AND ANALYSTS STILL BELIEVE THE PLAN WILL BE ACCEPTED BUT NORDLB'S OBJECTIONS INDICATED THAT CONSENSUS WON'T COME EASILY METALLGESELLSCHAFT'S NEW CHAIRMAN KAJO NEUKIRCHEN SAID LAST WEEK THAT THE COMPANY FACES LIQUIDATION UNLESS BANKS BACKED THE PROPOSAL IT INCLUDES A NEW SHARE OFFERING TO RAISE ONE POINT FOUR BILLION MARKS A REQUEST THAT BANKS CONVERT ONE POINT THREE BILLION MARKS OF METALLGESELLSCHAFT DEBT INTO SUBORDINATED EQUITY AND A NEW FIVE HUNDRED MILLIONMARK CREDIT LINE NORDLB CHAIRMAN MANFRED BODIN SAID THIS WEEK THAT NOT ALL OF METALLGESELLSCHAFT'S BANK CREDITORS WOULD APPROVE THE RESCUE PLAN MR. BODIN CONTENDS THAT THE TERMS OF THE FINANCIAL PACKAGE WERE PRACTICALLY DICTATED BY THE COMPANY AND ITS LEADING BANK ALLIES NORDLB IS ONE OF THE COMPANY'S TOP FIVE BANK CREDITORS WITH EXPOSURE OF TWO HUNDRED FORTY MILLION MARKS HE ASSERTED THAT THE COMPANY'S BIG SHAREHOLDERS WEREN'T BEARING THEIR SHARE OF THE BURDEN THESE INCLUDE DEUTSCHE BANK DRESDNER BANK INSURER ALLIANZ A. G. DAIMLER BENZ A. G. AND THE GOVERNMENT OF KUWAIT THAT GROUP WHICH REPRESENTS SIXTY TWO PERCENT OF THE COMPANY'S EQUITY ALREADY HAS ENDORSED THE PLANNED EQUITY INCREASE MR. BODIN ALSO OBJECTED TO THE PROPOSAL THAT BANKS ABSORB ANY SHARES STEMMING FROM THE RIGHTS ISSUE THAT GO UNPURCHASED BY SMALLER SHAREHOLDERS WHO ACCOUNT FOR THIRTY EIGHT PERCENT OF METALLGESELLSCHAFT EQUITY DEUTSCHE BANK WHICH HEADS THE STEERING COMMITTEE OF BANK CREDITORS CALLED MR. BODIN'S CRITICISMS UNFOUNDED AND NOT REPRESENTATIVE OF SENTIMENTS HELD BY OTHER BANK CREDITORS QUOTE THE PROPOSED CONCEPT THE FUNDAMENTALS OF WHICH HAVE ALREADY BEEN ACCEPTED BY A NUMBER OF REPUTABLE NATIONAL AND INTERNATIONAL BANKS WASN'T DICTATED BUT CAME UNDER THE TIME PRESSURE OF REQUIREMENTS SET BY CORPORATE AND BANKRUPTCY LAWS QUOTE DEUTSCHE BANK SAID DEUTSCHE BANK ALSO REJECTED A PROPOSAL FROM MR. BODIN TO WRITE DOWN METALLGESELLSCHAFT'S EQUITY AND BRING ITS COMMERCIAL PAPER AND BONDS INTO THE DEBT RESTRUCTURING CLAIMING THIS WOULD IMPAIR THE COMPANY'S BORROWING ABILITIES FOR YEARS BANKS ARE UNDER PRESSURE TO SAVE THE COMPANY AS THEY HAVE A TOTAL CREDIT EXPOSURE OF NINE BILLION MARKS AND A COURT DIRECTED LIQUIDATION MIGHT REPAY BANKS ONLY FORTY PERCENT OF THEIR LOANS UNDER GERMAN LAW FORD MOTOR COMPANY WHICH IS DEEPENING ITS RELATIONSHIP WITH JAPAN'S TROUBLED MAZDA MOTOR CORPORATION SAID IT IS WILLING TO REVISIT THE ISSUE OF BUILDING VEHICLES FOR MAZDA TO SELL IN EUROPE FORD HAS SPARE CAPACITY AT ITS PLANTS IN BRITAIN ACCORDING TO REMARKS BY W. WAYNE BOOKER FORD'S EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL OPERATIONS REPORTED BY THE FINANCIAL TIMES FORD OWNS TWENTY FIVE PERCENT OF MAZDA FORD AND MAZDA SPOKESMEN SAID THE COMPANIES STUDIED A SIMILAR PROPOSAL LAST YEAR ONLY TO SCRAP IT IN MARCH AT THE TIME FORD CITED DETERIORATING MARKET CONDITIONS IN EUROPE AND A FAILURE TO IDENTIFY A SUITABLE JOINT PROJECT MAZDA BUILDS VEHICLES IN JAPAN FOR FORD TO SELL THE COMPANIES JOINTLY BUILD CARS IN MICHIGAN FOR THE U. S. MARKET AND MAZDA SELLS FORD BUILT TRUCKS IN THE U. S. OF JAPAN'S BIG FIVE AUTO MAKERS MAZDA IS THE ONLY ONE WITHOUT A PLAN FOR EUROPEAN PRODUCTION IN A ROSY ECONOMIC FORECAST THE NATIONAL ASSOCIATION OF MANUFACTURERS PROJECTED THAT SUSTAINED DOMESTIC GROWTH WILL HELP TO CREATE TWO HUNDRED THOUSAND MANUFACTURING JOBS THIS YEAR MANY ECONOMIC ANALYSTS AND EVEN THE N. A. M.'S EXECUTIVE COMMITTEE A GROUP OF FIFTEEN INDUSTRIALISTS HAVE PREDICTED FLAT EMPLOYMENT PROSPECTS FOR NINETEEN NINETY FOUR BUT N. A. M. PRESIDENT JERRY JASINOWSKI SAID RESIDENTIAL BUILDING AND FURNITURE MANUFACTURING SHOW SIGNS OF A STRONG PICKUP WHICH COULD LEAD TO MORE FACTORY JOBS HE ACKNOWLEDGED HOWEVER THAT THE N. A. M.'S ESTIMATE WAS QUOTE ROBUST QUOTE MODEST JOB CREATION WOULD MEAN A SHARP TURNAROUND FOR THE MANUFACTURING SECTOR WHICH LOST ONE HUNDRED EIGHTY ONE THOUSAND JOBS LAST YEAR AND THREE HUNDRED NINETEEN THOUSAND IN NINETEEN NINETY TWO ACCORDING TO LABOR DEPARTMENT DATA MANUFACTURING EMPLOYMENT HASN'T GROWN SINCE NINETEEN EIGHTY EIGHT WHEN TWO HUNDRED TWENTY SIX THOUSAND JOBS WERE CREATED WHEN COMPANIES SPEND MONEY NOW THEY'RE NOT LOOKING TO HIRE PEOPLE SAID THOMAS RUNIEWICZ AN INDUSTRIAL ANALYST WITH THE W. E. F. A. GROUP NEAR PHILADELPHIA THEY'RE LOOKING TO INVEST IN INNOVATIVE MACHINERY WE ARE NOT GETTING THE KIND OF REHIRING WE HAVE TRADITIONALLY HAD MR. JASINOWSKI SAID OVER A MILLION JOBS ARE ASSOCIATED WITH WHAT WE REGARD AS A DECREASE IN THE HIRING HABITS LARGELY BECAUSE FIRMS ARE ATTEMPTING TO RESTORE PROFIT MARGINS INCREASED WORKER BENEFITS AND FAIRLY LOW PRICES IN THE WORLD MARKET ARE KEEPING THE PRESSURE ON PROFIT MARGINS MR. JASINOWSKI SAID PRESIDENT CLINTON'S HEALTH CARE PACKAGE WOULD INCREASE THE COST OF WORKER BENEFITS BUT IT ISN'T EXPECTED TO BE ENACTED THIS YEAR AND THUS HAD LITTLE IMPACT ON THE NINETEEN NINETY FOUR FORECAST THE N. A. M. HAS ASKED MR. CLINTON TO SCALE BACK THE BASIC EMPLOYEE BENEFITS COMPONENT OF HIS PLAN MR. JASINOWSKI SAID THE NORTH AMERICAN FREE TRADE AGREEMENT WITH CANADA AND MEXICO WOULD HAVE POSITIVE SHORT TERM EFFECTS HE CALLED MR. CLINTON'S NINETEEN NINETY THREE BUDGET RECONCILIATION MODERATELY RESTRICTIVE HOWEVER AND SAID THE PACKAGE'S TAX INCREASES MIGHT HAMPER GROWTH INTEREST RATES AND INFLATION WILL REMAIN STABLE IN NINETEEN NINETY FOUR MR. JASINOWSKI SAID HE ALSO PROJECTED THE WORLD ECONOMY WOULD GAIN STRENGTH THIS YEAR QUOTE I'M A BIT MORE OPTIMISTIC ABOUT OUR TRADE OUTLOOK FOR NINETEEN NINETY FOUR THAN OTHER ANALYSTS BELIEVING THE U. S. WILL SEE ITS EXPORTS BEGIN TO REBOUND QUOTE HE SAID DUE TO STRONGER GLOBAL DEMAND FOR OUR PRODUCTS EXPORTS WILL INCREASE TO A SIX POINT THREE PERCENT GROWTH RATE IN NINETEEN NINETY FOUR AND SEVEN POINT FIVE PERCENT IN NINETEEN NINETY FIVE THE N. A. M. PREDICTED A THREE POINT OH PERCENT INCREASE IN GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE U. S. FOR NINETEEN NINETY FOUR WITH BUSINESS EQUIPMENT SPENDING RISING ROGER A. KAUFFMAN WAS NAMED SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MINING CONCERN FILLING A NEW POSITION MR. KAUFFMAN FORTY NINE YEARS OLD FORMERLY WAS VICE PRESIDENT OF INDUSTRIAL MINERALS AT HECLA MINING COMPANY COEUR D'ALENE IDAHO THERE IS A GREAT SCENE IN ALFRED HITCHCOCK'S MOVIE QUOTE THE LADY VANISHES QUOTE IN WHICH THE PROFESSOR'S SOLUTION TO THE CASE IS CONVINCINGLY REFUTED IT DOES NOT BOTHER HIM IN THE SLIGHTEST MY THEORY IS PERFECTLY CORRECT HE HUFFS IT IS THE FACTS THAT ARE MISLEADING YOUR JANUARY THIRD EDITORIAL A THERAPEUTIC STATE RAISES IMPORTANT ISSUES ABOUT MENTAL ILLNESS IT APPROPRIATELY RAISES CONCERNS ABOUT THE WAY SERVICES MAY BE OVERUSED IF THEIR COST TO THE PATIENT BECOMES MINIMAL AND WHETHER SOCIAL OR BIOLOGICAL FACTORS LEAD TO MENTAL ILLNESS BUT YOUR UNDERLYING PREMISE IS BASED ON A VIEW OF MENTAL ILLNESS AND SUBSTANCE ABUSE THAT OBSCURES THE TRUTH IT CAN ONLY BE BELIEVED IF LIKE HITCHCOCK'S PROFESSOR ONE DOESN'T LET FACTS GET IN THE WAY TO BEGIN WITH YOU IMPLY THE CLINTON ADMINISTRATION FAILED TO TAKE INTO ACCOUNT THE CONCERN FOR CONTAINING COSTS AND PROTECTING AGAINST ABUSE OF BENEFITS AND WORRY THAT WE MIGHT PROVIDE COVERAGE FOR THOSE WHO ARE SIMPLY DISSATISFIED WITH THEIR PERSONALITIES AND DESIRE A SURER TICKET TO HAPPINESS AND SOCIAL SUCCESS IN FACT UNDER THE PRESIDENT'S PLAN INDIVIDUALS WILL BE ELIGIBLE FOR MENTAL HEALTH SLASH SUBSTANCE ABUSE SERVICES ONLY IF THEY HAVE A MEDICALLY DIAGNOSABLE MENTAL OR SUBSTANCE ABUSE DISORDER AND ARE AT SIGNIFICANT RISK OF FUNCTIONAL IMPAIRMENT FURTHERMORE COST CONSCIOUSNESS IS SUPPORTED UNDER THE PLAN BY FAVORING THE MOST EFFECTIVE TREATMENT IN THE LEAST COSTLY MOST APPROPRIATE SETTING FOR EXAMPLE IN ORDER TO AVOID UNNECESSARY HOSPITALIZATION THE PLAN PROMOTES A SHIFT TOWARD OUTPATIENT COMMUNITY BASED CARE BUT MOST TROUBLING IS THAT YOUR ARGUMENT IS BASED ON OUTDATED STEREOTYPES LONG DISCREDITED BY SCIENTIFIC AND FISCAL REALITIES FIRST YOU IMPLY THAT MANY MENTAL HEALTH AND SUBSTANCE ABUSE DISORDERS ARE INCONSEQUENTIAL WHEN IN FACT MOST ARE SERIOUS COSTLY AND POTENTIALLY DEADLY A RECENT REVIEW OF ALL SUICIDE STUDIES CONDUCTED BY THE NEW ENGLAND JOURNAL OF MEDICINE CONCLUDED THAT NINETY PERCENT OF SUICIDES WERE RELATED TO DEPRESSIVE ILLNESS FURTHER ACCORDING TO A RECENT MASSACHUSETTS INSTITUTE OF TECHNOLOGY STUDY MENTAL ILLNESS AND SUBSTANCE ABUSE DISORDERS COST THE COUNTRY MORE EACH YEAR IN TERMS OF EMPLOYEE PRODUCTIVITY AND ABSENTEEISM THAN CANCER CORONARY HEART DISEASE CHRONIC LUNG DISEASE OR AIDS SPECIFICALLY THE M. I. T. STUDY REVEALS DEPRESSION ALONE COSTS SOCIETY FORTY THREE POINT SEVEN BILLION DOLLARS ANNUALLY OVER ONE HALF OF WHICH IS PAID DIRECTLY BY AMERICAN BUSINESSES THE HEALTH SECURITY ACT DOES NOT CONFUSE THE TRIVIAL COMPLAINTS OF DAILY LIVING WITH CAREFULLY DIAGNOSED MENTAL DISORDERS SCHIZOPHRENIA MAJOR DEPRESSION MANIC DEPRESSION AS WELL AS SERIOUS ANXIETY CONDITIONS SUCH AS PANIC DISORDERS AND OBSESSIVE COMPULSIVE DISORDER TAKE A SERIOUS HUMAN AND ECONOMIC TOLL SECOND YOU IMPLY THAT COVERAGE OF MENTAL ILLNESS AND SUBSTANCE ABUSE IS NOT COST EFFECTIVE WHEN IN FACT NEARLY ALL MEDIUM AND LARGE FIRMS INCLUDE MENTAL ILLNESS AND SUBSTANCE ABUSE COVERAGE IN THEIR HEALTH INSURANCE PLANS AND SEE IT AS ESSENTIAL THE JOURNAL ITSELF REPORTED IN NOVEMBER NINETEEN NINETY TWO ON FIRST CHICAGO CORPORATION THAT IT REVIEWS EACH PATIENT'S MENTAL HEALTH TREATMENT CASE BY CASE BUT DOESN'T IMPOSE ANY ACROSS THE BOARD LIMITS EVEN ON PSYCHOTHERAPY THE TOTAL COST LESS THAN THREE HUNDRED DOLLARS PER EMPLOYEE QUOTE I WONDER DOES THE WALL STREET JOURNAL PRACTICE WHAT IT PREACHES AND EXCLUDE MENTAL ILLNESS AND SUBSTANCE ABUSE COVERAGE FOR ITS OWN EMPLOYEES OR LIKE MOST EMPLOYERS DOES IT PROVIDE COVERAGE FOR MENTAL ILLNESS AND SUBSTANCE ABUSE NOT VERY DIFFERENT FROM THAT INITIALLY PROPOSED BY THE ADMINISTRATION THIRD YOU BELITTLE DECADES OF PROGRESS IN PSYCHOPHARMACOLOGY IN YOUR REFERENCE TO THE PROZAC CRAZE ABUSES OF PRESCRIPTION DRUGS OCCUR ALL TOO OFTEN NO MATTER WHAT THEY TREAT BUT WIDE USE BY ITSELF DOES NOT IMPLY A CRAZE IF IT DID YOU ALSO WOULD HAVE TO BEMOAN THE CONTINUING PENICILLIN CRAZE THE FACT IS PSYCHIATRIC MEDICATIONS INCLUDING ANTIDEPRESSANTS SUCH AS PROZAC HAVE BEEN DEVELOPED FOR THE TREATMENT OF DIAGNOSABLE MENTAL ILLNESSES NOT THE CASUAL PURSUIT OF HAPPINESS MOREOVER THE POSITIVE IMPACT OF PSYCHOPHARMACOLOGY IS REAL AND MEASURABLE FOR INSTANCE THANKS TO RELATIVELY NEW MEDICATIONS THE EFFICACY RATE FOR THE TREATMENT OF ACUTE EPISODES OF SCHIZOPHRENIA IS NOW SIXTY PERCENT COMPARED WITH SAY FORTY ONE PERCENT FOR ANGIOPLASTY OR FIFTY TWO PERCENT FOR ATHERECTOMY LITHIUM USED FOR THE TREATMENT OF MANIC DEPRESSION HAS SAVED THE ECONOMY BILLIONS OF DOLLARS OVER THE PAST TWO DECADES AND CLOZAPINE NOW ALLOWS MANY OF THE MOST SERIOUSLY ILL TO LIVE THEIR LIVES PRODUCTIVELY OUTSIDE THE RESTRICTIVE AND EXPENSIVE SETTINGS OF A HOSPITAL FINALLY YOU EXPRESS THE FEAR THAT IN PROVIDING SUCH COVERAGE THERE NEVER WILL BE LIMITS FOR TAX PAID TREATMENTS LET ME ASSURE YOU THAT QUESTION WAS A MATTER OF INTENSE CONCERN AND DEBATE FOR ALL OF US WHO CONTRIBUTED TO THE PRESIDENT'S PLAN AND THE PLAN COVERS THIS CONCERN IN FACT THE FAILURE TO PROVIDE MENTAL ILLNESS AND SUBSTANCE ABUSE COVERAGE WOULD RESULT IN FALSE SAVINGS RECENT STUDIES HAVE PROVEN THAT PROVIDING TREATMENT FOR THESE DISORDERS HELPS DECREASE USE OF GENERAL HEALTH CARE SERVICES CAN GOVERNMENT DO EVERYTHING OF COURSE NOT NOR SHOULD IT AND I COULD NOT HELP BUT NOD MY HEAD IN AGREEMENT AS I READ YOUR CALL FOR A QUOTE STABILIZED SOCIAL ORDER QUOTE THAT QUOTE STARTS WITH HAVING A PARENT TEND TO A CHILD WITH HAVING A FATHER STAY WITH A MOTHER QUOTE ABSOLUTELY RIGHT BUT FOR MILLIONS OF INDIVIDUALS ATTENTIVE AND LOVING FAMILIES CANNOT BE A SUBSTITUTE FOR MEDICALLY NECESSARY TREATMENT FOR MENTAL ILLNESSES OR SUBSTANCE ABUSE DISORDERS WE DO NOT LIVE IN A WORLD WHERE PEOPLE CAN WILL THEMSELVES WELL SO WE MUST CREATE A SYSTEM THAT PROVIDES CARE WHILE CONTROLLING COSTS OUR CURRENT HEALTH CARE SYSTEM DOES NOT MEET THESE GOALS IT INSURES THE HEALTHY BUT TOO OFTEN AVOIDS THE SICK ALLOWING THIS SYSTEM TO CONTINUE TO SPIRAL OUT OF CONTROL MAKES NO COMMON OR FISCAL SENSE AND IGNORES THE FACTS STOCKS RETREATED AS INVESTORS TOOK PROFITS AFTER MONDAY'S RECORD SETTING RUN BOND PRICES ENDED MODESTLY HIGHER AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE FELL FIFTEEN POINT TWO OH POINTS TO THREE THOUSAND EIGHT HUNDRED FIFTY POINT THREE ONE AFTER HITTING HIGHS FOR FOUR STRAIGHT DAYS STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX LOST ONE POINT ONE FOUR TO FOUR HUNDRED SEVENTY FOUR POINT ONE THREE AND THE NASDAQ COMPOSITE INDEX EASED ONE POINT ONE SEVEN TO SEVEN HUNDRED EIGHTY FIVE POINT FIVE TWO QUOTE WE'VE HAD A PRETTY GOOD YEAR SO FAR AND IT LOOKS LIKE YOU HAD SOME PROFIT TAKING YESTERDAY QUOTE SAID PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES MR. CANELO SAID HE THINKS STOCK INVESTORS WILL WAIT TO SEE WHERE INTEREST RATES ARE HEADED BEFORE THEY PUSH STOCK PRICES MUCH HIGHER IF FOR INSTANCE TOMORROW'S CONSUMER PRICE REPORT IS BENIGN ENOUGH TO DRIVE THE YIELD ON THE TREASURY'S THIRTY YEAR BOND BELOW SIX POINT TWO OH PERCENT THEN THE DOW JONES INDUSTRIALS COULD MAKE A STAB AT THREE THOUSAND NINE HUNDRED MR. CANELO SAID TODAY INVESTORS WILL GET THEIR FIRST PEEK AT THE INFLATION PICTURE WHEN THE LABOR DEPARTMENT RELEASES ITS REPORT ON DECEMBER PRODUCER PRICES MANY ANALYSTS ARE EXPECTING THE INDEX TO DROP ZERO POINT TWO PERCENT DESPITE YESTERDAY'S STOCK MARKET SETBACK MANY ANALYSTS THINK STOCK PRICES WILL RESUME THEIR RISE LARGELY BECAUSE OF THE MOUNTAINS OF CASH THAT HAVE BEEN POURING INTO STOCK MUTUAL FUNDS WE ARE RUNNING AT UNBELIEVABLE LEVELS SAID NEAL LITVACK EXECUTIVE VICE PRESIDENT AT FIDELITY INVESTMENTS THE NATION'S LARGEST MUTUAL FUND COMPANY AS OF YESTERDAY MR. LITVACK SAID A NET ONE POINT THREE BILLION DOLLARS HAD FLOODED INTO FIDELITY'S STOCK AND BOND FUNDS THIS MONTH WITH ABOUT EIGHTY PERCENT OF THE MONEY GOING TO STOCKS OF THAT TWO THIRDS OF THE MONEY HAD FLOWED INTO DOMESTIC STOCK FUNDS WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST ZERO POINT THREE FOUR TO ONE HUNDRED TWELVE POINT NINE ONE STOCK PRICES DROPPED VOLUME TOTALED THREE HUNDRED FOUR POINT SIX MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE ONE THOUSAND ONE HUNDRED FORTY FIVE ISSUES FELL AND ONE THOUSAND FOUR ROSE BOND PRICES GAINED THE TREASURY'S BENCHMARK THIRTY YEAR ISSUE ROSE LESS THAN ONE EIGHTH POINT OR UNDER ONE DOLLAR AND TWENTY FIVE CENTS FOR EACH ONE THOUSAND DOLLAR FACE AMOUNT TO YIELD SIX POINT TWO THREE PERCENT THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT ONE POINT SEVEN FOUR ONE SIX MARKS AND ONE HUNDRED TWELVE POINT FOUR OH YEN COMPARED WITH ONE POINT SEVEN THREE FOUR SIX MARKS AND ONE HUNDRED TWELVE POINT TWO FIVE YEN MONDAY IN BUSINESSES WHICH ARE FAILING NOT QUALIFYING FOR THE OTHERS TWENTY SEVEN YEARS AGO THIS PANHANDLE TOWN'S AMBITIONS SEEMED AS LIMITLESS AS THE TREELESS PLAINS IT OCCUPIES ENSHRINED IN A PAGE ONE STORY BY THIS NEWSPAPER AS A PARAGON OF ECONOMIC DEVELOPMENT PROWESS HEREFORD HAD JUST CAPPED A BLITZKRIEG CAMPAIGN TO ATTRACT NEW COMPANIES BY LANDING A NEW TWENTY THREE MILLION DOLLAR BEET SUGAR REFINERY POPULATION HAD SOARED FORTY PERCENT IN FIVE YEARS TO TWELVE THOUSAND FIVE HUNDRED SIXTY EIGHT AND JOBS WERE UP BY SIX HUNDRED QUOTE LIGHT PLANES SHUTTLE IN AND OUT OF THE LOCAL AIRSTRIP BRINGING ENGINEERS DEVELOPERS AND EAGER EASTERNERS WITH MONEY TO SPEND QUOTE THE ARTICLE OBSERVED QUOTING A LOCAL CATTLE FEEDLOT OPERATOR SAYING QUOTE I NEVER THOUGHT WE'D HAVE TO TURN AWAY CAPITAL BUT IT'S COME TO THAT QUOTE BUT THESE DAYS THE AIRPORT IS MOSTLY QUIET AND SPENDTHRIFT EASTERNERS ARE A RARE COMMODITY THE DOWNTOWN WHICH WE SAID THROBS WITH NEW VITALITY NOW HAS ITS SHARE OF EMPTY STOREFRONTS AND NEW JOBS ARE SCARCE AS IF THAT WASN'T ENOUGH HEREFORD APPEARS ON THE VERGE OF LOSING ONE OF ITS CULTURAL TREASURES THE NATIONAL COWGIRL HALL OF FAME AND WESTERN HERITAGE CENTER FOR LACK OF VISITORS FOR A WHILE THEY WERE GOING TO CONQUER THE WORLD IT WAS UNBELIEVABLE SAYS TOM PATTERSON PRESIDENT OF THE AMARILLO CHAMBER OF COMMERCE BUT NOW HE ADDS THE TOWN HAS KIND OF HIT A FLAT SPOT IN SOME WAYS IT'S A SPOT IN WHICH MUCH OF RURAL TEXAS FINDS ITSELF WITH OIL PRICES IN THE TANK AND AGRICULTURE A DWINDLING PART OF THE ECONOMY SMALL TOWNS THROUGHOUT THE STATE ARE GRAPPLING WITH JOB LOSSES AND AN AGING DECLINING POPULATION IN THE PANHANDLE JOBS GREW AT A MINUSCULE ZERO POINT ONE PERCENT ANNUAL RATE BETWEEN NINETEEN EIGHTY TWO AND NINETEEN NINETY TWO A PERIOD WHEN TEXAS EMPLOYMENT AS A WHOLE GREW ONE POINT FIVE PERCENT BUT AMID THIS GLOOMY OUTLOOK SOME PEOPLE STILL VIEW HEREFORD AS A PARAGON OF SORTS ALTHOUGH IT HASN'T ATTRACTED ANY MAJOR BUSINESSES IN YEARS SOME HOMEGROWN OPERATIONS HAVE THRIVED AND WHILE POPULATION FELL SLIGHTLY DURING THE LAST CENSUS HEREFORD STILL HAS ABOUT TEN PERCENT MORE PEOPLE THAN IT DID IN NINETEEN SEVENTY MUCH OF RURAL TEXAS AS MUCH OF RURAL AMERICA IS IN A STATE OF DECLINE AND IF HEREFORD HAS BEEN ABLE TO HOLD ITS OWN IT HAS BEEN SUCCESSFUL SAYS GREG TAYLOR A RURAL SOCIOLOGIST AT TEXAS A AND M. UNIVERSITY FOR HEREFORD HOLDING ITS OWN HAS MEANT FOCUSING INWARD RATHER THAN CHASING EVERY BUSINESS RELOCATION PROSPECT THAT COMES ALONG A GAME THAT'S INCREASINGLY COMPETITIVE AND TOUGH TO WIN TO BE SURE BUSINESS LEADERS STILL SPEND TIME AT TRADE SHOWS AND THE LIKE COURTING COMPANIES IN CALIFORNIA AND THE EAST COAST BUT THE EFFORT IS MINIMAL MADE IN CONCERT WITH OTHER PANHANDLE TOWNS AS PART OF A GENERAL CAMPAIGN TO BOOST THE REGION'S IMAGE INSTEAD THE MAJORITY OF OUR GROWTH IN THE LAST FEW YEARS HAS COME FROM WITHIN SAYS F. MICHAEL CARR EXECUTIVE VICE PRESIDENT OF THE DEAF SMITH COUNTY CHAMBER OF COMMERCE BASED HERE FOR INSTANCE WHEN TENNECO INCORPORATED'S J. I. CASE UNIT APPROACHED A LOCAL MANUFACTURER POARCH BROTHERS INCORPORATED ABOUT MAKING A NEW IMPLEMENT FOR A COTTON HARVESTER HEREFORD INDUSTRIAL FOUNDATION INCORPORATED SWUNG INTO ACTION THE NONPROFIT ORGANIZATION FUNDED CONSTRUCTION OF A TWO HUNDRED FIFTY THOUSAND DOLLAR BUILDING WHICH IT LEASED TO POARCH FOR THE NEW BUSINESS ADDING TWENTY FIVE JOBS LIKEWISE WHEN IMPERIAL HOLLY CORPORATION ANNOUNCED IT WAS CONSIDERING AN ELEVEN POINT SEVEN MILLION DOLLAR EXPANSION TO ITS BEET SUGAR REFINERY THE COUNTY OVERCAME ITS LONGTIME AVERSION TO TAX BREAKS AND GRANTED THE COMPANY A FIVE YEAR TAX ABATEMENT BUT PERHAPS THE MOST TELLING EXAMPLE OF HOMEGROWN GROWTH CAN BE FOUND AT HEREFORD BI PRODUCTS INCORPORATED A THRIVING IF PUNGENT COMPANY ON THE EDGE OF TOWN FOUNDED TWENTY FIVE YEARS AGO BY GARTH MERRICK THE OPERATION INITIALLY CONSISTED OF TWO EMPLOYEES AND TWO PICKUP TRUCKS THEIR SERVICE PICKING UP DEAD COWS AT FEEDLOTS AND SELLING OFF THE PARTS TODAY HEREFORD BI PRODUCTS WHOSE SLOGAN IS QUOTE YOUR LOCAL USED COW DEALER QUOTE IS THE BIGGEST SUCH COMPANY IN TEXAS THE FIVE HUNDRED EMPLOYEE ENTERPRISE HAS ALSO BRANCHED OFF INTO PET TREATS IT SELLS THE BONES AND RAWHIDE TAILS AND EARS OF COWS THROUGH PET STORES AND INTO DRY PET FOOD AND IT HAS BEGUN SHIPPING PRODUCTS TO JAPAN AND THE PHILIPPINES STILL THERE ARE SOME PEOPLE WHO MISS THE OLD DAYS WHEN THE COMMUNITY WAS INVOLVED IN SEXIER PURSUITS SUCH AS A LETTER WRITING CAMPAIGN TO PURSUADE CONGRESS TO CHANGE SUGAR BEET QUOTAS AND MAKE A LOCAL REFINERY POSSIBLE THAT WAS ALSO ABOUT THE TIME THE LOCAL CHAMBER OF COMMERCE SPONSORED THE CREATION OF THE NATIONAL COWGIRL HALL OF FAME A MUSEUM TO HONOR WOMEN OF THE WEST AND IT WAS HOPED FUEL A BUSTLING TOURIST TRADE BUT HEREFORD'S ISOLATION IT'S FIFTY MILES TO AMARILLO THE NEAREST BIG TOWN MADE IT TOUGH TO ATTRACT VISITORS SO NOW THE INSTITUTION MAY MOVE SOMEPLACE MORE POPULOUS WE JUST DON'T GET ENOUGH MONEY THROUGH THE FRONT DOOR SAYS MARGARET FORMBY PRESIDENT WE'RE OFF THE BEATEN PATH THE KING STUMBLES EVEN MIGHTY AUSTIN STRIKES OUT OCCASIONALLY WHEN COMPUTER MAKER PACKARD BELL ELECTRONICS INCORPORATED SAID IT WAS MOVING ITS SERVICE AND SUPPORT CENTER AS WELL AS ABOUT FIVE HUNDRED JOBS TO THE SALT LAKE CITY AREA FROM CHATSWORTH CALIFORNIA IT NOTED THAT AUSTIN WAS ONE OF THE SITES CONSIDERED DURING THE FOUR MONTH SEARCH PACKARD BELL DECLINED TO SAY WHY AUSTIN LOST BUT THE CITY APPARENTLY DIDN'T EVEN MAKE THE SHORT LIST WE ARE NOT AWARE PACKARD BELL WAS LOOKING AT AUSTIN AT ALL SAYS ANGELOS ANGELOU HEAD OF ECONOMIC DEVELOPMENT FOR THE GREATER AUSTIN CHAMBER OF COMMERCE THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN U. S. AND NON U. S. CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM TWO HUNDRED FOUR POINT SIX MILLION DOLLARS OF NOTES DUE JANUARY TWENTY FIRST NINETEEN NINETY SEVEN PRICED AT PAR TO YIELD FOUR POINT FOUR PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FOUR BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY FEDERAL HOME LOAN BANK SYSTEM ONE HUNDRED MILLION DOLLARS OF FLOATINGRATE NOTES DUE JANUARY FOURTEENTH NINETEEN NINETY SEVEN ACCORDING TO M. C. M. CORPORATEWATCH THE BONDS WILL PAY QUARTERLY AND FLOAT DAILY AT THE PRIME RATE MINUS TWO HUNDRED FIFTY FIVE BASIS POINTS THE FIRST COUPON WILL BE SET FRIDAY THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INCORPORATED FEDERAL HOME LOAN MORTGAGE CORPORATION ONE HUNDRED MILLION DOLLARS OF STEPUP NOTES DUE JANUARY FIFTH NINETEEN NINETY NINE PRICED AT PAR TO YIELD FOUR POINT THREE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF THIRTY FIVE BASIS POINTS ABOVE TREASURYS THE FIRST COUPON WILL BE SET JULY FIFTH THE NOTES WILL STEP UP TO FIVE POINT SIX THREE PERCENT JANUARY FIFTH NINETEEN NINETY FIVE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS INCORPORATED FEDERAL HOME LOAN MORTGAGE CORPORATION ONE HUNDRED MILLION DOLLARS OF FLOATING RATE NOTES DUE JANUARY FOURTEENTH NINETEEN NINETY SEVEN PRICED INITIALLY AT PAR TO YIELD THREE POINT FOUR TWO PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES WILL FLOAT WEEKLY AND PAY QUARTERLY AT THE PRIME RATE MINUS TWO HUNDRED FIFTY EIGHT BASIS POINTS THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INCORPORATED FEDERAL HOME LOAN MORTGAGE CORPORATION ONE HUNDRED MILLION DOLLARS OF NOTES DUE JANUARY EIGHTEENTH NINETEEN NINETY SIX PRICED INITIALLY AT PAR TO YIELD FOUR POINT ONE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF THREE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AND COMPANY FEDERAL HOME LOAN MORTGAGE CORPORATION ONE HUNDRED MILLION DOLLARS OF STEPUP DEBENTURES DUE JANUARY TWENTIETH NINETEEN NINETY SEVEN PRICED AT PAR TO YIELD FOUR POINT ONE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE ISSUE NONCALLABLE FOR ONE YEAR WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED THE FIRST COUPON IS PRICED AT SPREAD OF SIXTY BASIS POINTS OVER TREASURYS THE NOTES WILL STEP UP TO FOUR POINT EIGHT PERCENT JANUARY TWENTIETH NINETEEN NINETY FIVE FEDERAL HOME LOAN MORTGAGE CORPORATION ONE HUNDRED MILLION DOLLARS OF DEBENTURES DUE JANUARY TWENTY FOURTH TWO THOUSAND ONE PRICED AT PAR TO YIELD FIVE POINT SIX NINE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF FIFTY FOUR BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION THREE HUNDRED MILLION DOLLARS OF NOTES DUE JANUARY TWENTY FIRST NINETEEN NINETY SEVEN PRICED AT PAR TO YIELD FOUR POINT THREE EIGHT PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FOUR BASIS POINTS ABOVE TREASURYS AND WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY FEDERAL NATIONAL MORTGAGE ASSOCIATION ONE HUNDRED FIFTY MILLION DOLLARS OF MEDIUM TERM NOTES DUE JANUARY NINETEENTH NINETEEN NINETY SIX PRICED AT PAR TO YIELD FOUR POINT OH SEVEN PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF THREE BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED FIRST U. S. A. BANK THREE HUNDRED FIFTY MILLION DOLLARS OF BANK NOTES DUE JANUARY FIFTEENTH NINETEEN NINETY NINE PRICED AS FIVE POINT SEVEN FIVES AT NINETY NINE POINT FIVE SEVEN FOUR TO YIELD FIVE POINT EIGHT FIVE PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF EIGHTY FIVE BASIS POINTS ABOVE TREASURYS RATED B. A. A. THREE BY MOODY'S INVESTORS SERVICE INCORPORATED AND TRIPLE B. MINUS BY STANDARD AND POOR'S CORPORATION THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY FIRST U. S. A. BANK IS A FIRST U. S. A. INCORPORATED UNIT INTERNATIONAL LEASE FINANCE CORPORATION ONE HUNDRED MILLION DOLLARS OF NOTES DUE JANUARY FIFTEENTH NINETEEN NINETY SEVEN PRICED AS FOUR POINT SEVEN FIVES AT NINETY NINE POINT EIGHT SIX ONE TO YIELD FOUR POINT EIGHT PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FORTY FIVE BASIS POINTS ABOVE TREASURYS RATED SINGLE A TWO BY MOODY'S AND SINGLE A PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INCORPORATED INTERNATIONAL LEASE FINANCE IS A UNIT OF AMERICAN INTERNATIONAL GROUP INCORPORATED SEARS ROEBUCK AND COMPANY THREE HUNDRED MILLION DOLLARS OF NOTES DUE JANUARY FIFTEENTH TWO THOUSAND FOUR PRICED AS SIX POINT TWO FIVES AT NINETY NINE POINT FIVE SEVEN THREE TO YIELD SIX POINT THREE OH EIGHT PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SIXTY SEVEN BASIS POINTS ABOVE TREASURYS RATED B. A. A. ONE BY MOODY'S AND TRIPLE B. PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY AND COMPANY SYSTEM ENERGY RESOURCES INCORPORATED FOUR HUNDRED THIRTY FIVE MILLION DOLLARS OF SECURED LEASE OBLIGATION BONDS PRICED THROUGH MORGAN STANLEY AND COMPANY ACCORDING TO M. C. M. CORPORATEWATCH THE FIRST TRANCHE THREE HUNDRED SIXTY FIVE MILLION DOLLARS OF SECURED LEASE OBLIGATION BONDS WAS PRICED AT PAR TO YIELD SEVEN POINT FOUR THREE PERCENT THE BONDS WERE PRICED AT A SPREAD OF ONE HUNDRED EIGHTY BASIS POINTS ABOVE TREASURYS THE BONDS AMORTIZE FOR AN ELEVEN YEAR AVERAGE LIFE AND HAVE A SEVENTEEN YEAR FINAL MATURITY THE SECOND TRANCHE SEVENTY MILLION DOLLARS OF SECURED LEASE OBLIGATION BONDS WAS PRICED AT A PAR TO YIELD EIGHT POINT TWO PERCENT THE BONDS WERE PRICED AT A SPREAD OF ONE HUNDRED EIGHTY THREE BASIS POINTS ABOVE TREASURYS THE BONDS AMORTIZE FOR A NINETEEN POINT SEVEN YEAR AVERAGE LIFE AND HAVE A TWENTY ONE YEAR FINAL MATURITY BOTH TRANCHES ARE NONCALLABLE FOR TEN YEARS AND ARE RATED B. A. A. THREE BY MOODY'S AND TRIPLE B. MINUS BY S. AND P. WACHOVIA CORPORATION TWO HUNDRED FIFTY MILLION DOLLARS OF SUBORDINATED NOTES DUE FEBRUARY FIRST TWO THOUSAND NINE PRICED AS SIX POINT THREE SEVEN FIVES AT NINETY NINE POINT EIGHT SEVEN TO YIELD SIX POINT THREE EIGHT EIGHT PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SEVENTY FIVE BASIS POINTS ABOVE TREASURYS RATED SINGLE A ONE BY MOODY'S AND DOUBLE A MINUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY WACHOVIA IS A UNIT OF FIRST WACHOVIA CORPORATION CRESCENT AIRWAYS CORPORATION INITIAL OFFERING OF ONE MILLION UNITS PRICED AT TEN POINT ONE TWO FIVE DOLLARS EACH THROUGH UNDERWRITERS LED BY THOMAS JAMES ASSOCIATES EACH UNIT CONSISTS OF TWO COMMON SHARES AND ONE WARRANT EXERCISABLE FOR THE FIRST TWENTY FOUR MONTHS AT SIX DOLLARS AND FOR THE FOLLOWING TWENTY FOUR MONTHS AT SEVEN DOLLARS AND FIFTY CENTS ALBUQUERQUE NEW MEXICO ONE HUNDRED TWELVE POINT TWO MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR A AND SERIES NINETEEN NINETY FOUR B. JOINT WATER AND SEWER SYSTEM REVENUE AND REFUNDING BONDS PRICED BY A SMITH BARNEY SHEARSON INCORPORATED GROUP INCLUDED ARE ONE HUNDRED TWO POINT NINE MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR A REFUNDING AND IMPROVEMENT REVENUE BONDS YIELDS RANGE FROM TWO POINT SEVEN FIVE PERCENT IN NINETEEN NINETY FIVE TO FOUR POINT SEVEN FIVE PERCENT IN TWO THOUSAND FIVE ALSO INCLUDED ARE NINE POINT THREE MILLION DOLLARS SERIES OF NINETEEN NINETY FOUR B. TAXABLE REFUNDING REVENUE BONDS DUE NINETEEN NINETY FIVE BONDS DUE JANUARY NINETEEN NINETY FIVE ARE THREE POINT SEVENS PRICED TO YIELD THREE POINT SEVEN SIX PERCENT BONDS DUE JULY NINETEEN NINETY FIVE ARE FOURS PRICED TO YIELD FOUR POINT OH SEVEN PERCENT MOODY'S RATED THE ISSUE SINGLE A ONE S. AND P. ASSIGNED A DOUBLE A RATING AND FITCH INVESTORS SERVICE INCORPORATED ASSIGNED A DOUBLE A MINUS RATING ANCHORAGE ALASKA ONE HUNDRED THIRTY THREE POINT NINE MILLION DOLLARS OF TELEPHONE UTILITY REVENUE REFUNDING BONDS PRICED BY A LEHMAN BROTHERS INCORPORATED GROUP TO YIELD FROM TWO POINT FIVE PERCENT IN NINETEEN NINETY FOUR TO FIVE POINT ONE SEVEN PERCENT IN TWO THOUSAND TEN THE BONDS ARE INSURED BY AMBAC INDEMNITY CORPORATION AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY ONE HUNDRED NINE MILLION DOLLARS OF CERTIFICATES OF PARTICIPATION PRICED BY A GOLDMAN SACHS AND COMPANY GROUP YIELDS RANGE FROM THREE POINT EIGHT PERCENT IN NINETEEN NINETY NINE TO FIVE POINT TWO SEVEN PERCENT IN TWO THOUSAND TWENTY THREE THE BONDS HAVE TRIPLE A RATINGS FROM MOODY'S AND S. AND P. FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION ONE HUNDRED FORTY ONE POINT FIVE MILLION DOLLARS SAVE OUR COAST REFUNDING BONDS APPARENTLY WON BY A GOLDMAN SACHS AND COMPANY GROUP YIELDS RANGE FROM TWO POINT FOUR PERCENT IN JULY TO FIVE POINT ONE NINE PERCENT IN TWO THOUSAND TWELVE MOST OF THE BONDS ARE INSURED BY AMBAC INDEMNITY CORPORATION AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY THREE HUNDRED EIGHTY POINT FIVE MILLION DOLLAR MORTGAGE REVENUE REFUNDING BONDS PRICED BY A J. P. MORGAN SECURITIES INCORPORATED GROUP YIELDS FOR THE BONDS RANGE FROM TWO POINT TWO FIVE PERCENT IN AUGUST TO FIVE POINT FIVE THREE PERCENT IN TWO THOUSAND TWENTY FOUR THE BONDS HAVE BEEN RATED DOUBLE A BY MOODY'S AND TRIPLE A BY S. AND P. OHIO BUILDING AUTHORITY THREE HUNDRED SIXTY TWO MILLION DOLLARS OF NINETEEN NINETY FOUR SERIES A REFUNDING BONDS PRICED BY AN A. G. EDWARDS AND SONS INCORPORATED GROUP INCLUDED ARE TWO HUNDRED TWELVE POINT NINE MILLION DOLLARS OF STATE CORRECTIONAL FACILITIES REFUNDING BONDS PRICED TO YIELD FROM TWO PERCENT IN APRIL NINETEEN NINETY FOUR TO FOUR POINT NINE FIVE PERCENT IN TWO THOUSAND SIX THE BONDS HAVE BEEN RATED SINGLE A ONE BY MOODY'S AND SINGLE A PLUS BY S. AND P. THE NINETY SIX POINT NINE MILLION DOLLARS OF STATE FACILITIES REFUNDING BONDS FOR VERN RIFFE CENTER ARE PRICED TO YIELD FROM TWO PERCENT IN APRIL NINETEEN NINETY FOUR TO FIVE PERCENT IN TWO THOUSAND EIGHT BONDS DUE IN NINETEEN NINETY NINE TO TWO THOUSAND EIGHT ARE INSURED BY AMBAC INDEMNITY CORPORATION AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. THE BALANCE OF THE BONDS HAVE A SINGLE A ONE RATING FROM MOODY'S AND A SINGLE A PLUS RATING FROM S. AND P. THE FORTY THREE POINT ONE MILLION DOLLARS OF LOCAL JAIL GRANT REFUNDING BONDS ARE PRICED TO YIELD FROM TWO PERCENT IN APRIL NINETEEN NINETY FOUR TO FIVE PERCENT IN TWO THOUSAND EIGHT BONDS DUE IN NINETEEN NINETY NINE TO TWO THOUSAND EIGHT ARE INSURED BY AMBAC INDEMNITY CORPORATION AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. THE BALANCE OF THE BONDS HAVE A SINGLE A ONE RATING FROM MOODY'S AND A SINGLE APLUS RATING FROM S. AND P. THE NINE POINT TWO MILLION DOLLARS OF STATE FACILITIES REFUNDING BONDS FOR THE DNR FOUNTAIN SQUARE PROJECT ARE PRICED TO YIELD FROM TWO PERCENT IN APRIL NINETEEN NINETY FOUR TO FIVE POINT OH FIVE PERCENT IN TWO THOUSAND EIGHT THEY ARE INSURED BY THE CAPITAL GUARANTY INSURANCE COMPANY AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. REEDY CREEK IMPROVEMENT DISTRICT FLORIDA TWO HUNDRED EIGHTEEN POINT NINE MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR TO ONE UTILITIES REVENUE IMPROVEMENT AND REFUNDING BONDS PRICED BY A MERRILL LYNCH AND COMPANY GROUP YIELDS RANGE FROM TWO POINT FOUR FIVE PERCENT IN OCTOBER TO FIVE POINT THREE PERCENT IN TWO THOUSAND NINETEEN THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. TENNESSEE VALLEY AUTHORITY TWO HUNDRED FIFTY MILLION DOLLARS OF FIRST INSTALLMENT SERIES BONDS DUE MARCH FIFTEENTH NINETEEN NINETY SEVEN PRICED AT PAR ACCORDING TO M. C. M. CORPORATEWATCH THE FIRST COUPON WILL BE SET MONDAY AND WILL PAY QUARTERLY AND FLOAT WEEKLY AT A SPREAD OF EIGHTEEN BASIS POINTS ABOVE THE THREE MONTH TREASURY BILL EQUIVALENT THE ISSUE NONCALLABLE FOR ONE YEAR WILL BE SOLD THROUGH UNDERWRITERS LED BY C. S. FIRST BOSTON INCORPORATED TEXAS MUNICIPAL POWER AGENCY ONE HUNDRED SIXTY NINE POINT THREE MILLION DOLLARS OF SERIES NINETEEN NINETY FOUR REFUNDING REVENUE BONDS PRICED BY A MERRILL LYNCH AND COMPANY GROUP TO YIELD FROM THREE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT THREE PERCENT IN TWO THOUSAND FOURTEEN THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE COMPANY AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. UNIVERSITY OF CALIFORNIA TWO HUNDRED NINETY FIVE POINT SIX MILLION DOLLARS OF REFUNDING REVENUE BONDS APPARENTLY WON BY A LEHMAN BROTHERS INCORPORATED GROUP YIELDS RANGE FROM THREE PERCENT IN NINETEEN NINETY FIVE TO FIVE POINT TWO FIVE PERCENT IN TWO THOUSAND THIRTEEN TO SIXTEEN THE BONDS ARE INSURED BY AMBAC INDEMNITY CORPORATION AND CARRY TRIPLE A RATINGS FROM MOODY'S AND S. AND P. WAKE COUNTY NORTH CAROLINA ONE HUNDRED FIFTY SIX POINT ONE MILLION DOLLARS OF IMPROVEMENT BONDS APPARENTLY WON BY A J. P. MORGAN SECURITIES INCORPORATED GROUP THE ONE HUNDRED FIFTEEN MILLION DOLLARS OF NEW MONEY BONDS HAVE YIELDS FROM TWO POINT TWO FIVE PERCENT IN NINETEEN NINETY FIVE TO FOUR POINT NINE FIVE PERCENT IN TWO THOUSAND TEN AND TWO THOUSAND ELEVEN J. P. MORGAN APPARENTLY WON THE FORTY ONE POINT ONE MILLION DOLLARS OF REFUNDING BONDS WITH YIELDS FROM TWO POINT TWO FIVE PERCENT IN NINETEEN NINETY FIVE TO FOUR POINT SIX FIVE PERCENT IN TWO THOUSAND SEVEN THIS OFFERING HAS TRIPLE A RATINGS FROM MOODY'S AND S. AND P. BANK AUSTRIA A. G. AUSTRIA ONE HUNDRED TWENTY FIVE MILLION SWISS FRANCS OF THREE PERCENT PUBLIC BONDS WITH EQUITY PURCHASE WARRANTS DUE FEBRUARY TWENTY EIGHTH TWO THOUSAND ONE PRICED AT PAR VIA BANCA DEL GOTTARDO WARRANTS EXERCISABLE TO FEBRUARY TWENTY EIGHTH NINETEEN NINETY SEVEN TO BUY BANK AUSTRIA PARTICIPATING SHARES AT STRIKE PRICE FOUR HUNDRED SCHILLINGS A PREMIUM OF ABOUT THREE POINT THREE SIX PERCENT FEES TWO BELGIUM SOVEREIGN FIVE HUNDRED MILLION DOLLARS OF FIVE POINT FIVE PERCENT EUROBONDS DUE NOVEMBER FIFTH TWO THOUSAND THREE AT ISSUE AND REOFFER PRICE NINETY SIX POINT SIX NINE SIX VIA MERRILL LYNCH INTERNATIONAL LIMITED BONDS YIELD FIVE POINT NINE NINE PERCENT A MARGIN OF TWENTY FOUR BASIS POINTS OVER COMPARABLE U. S. TREASURY BONDS WILL TRADE INTERCHANGEABLY WITH FIVE HUNDRED MILLION DOLLARS OF IDENTICAL BONDS OUTSTANDING OTHER TERMS UNCHANGED FEES ZERO POINT THREE TWO FIVE COMPAGNIE GENERALE DES ETABLISSEMENTS MICHELIN FRANCE THREE POINT FIVE BILLION FRENCH FRANCS OF TWO POINT FIVE PERCENT CONVERTIBLE BONDS DUE JANUARY FIRST TWO THOUSAND ONE AT ISSUE PRICE TWO HUNDRED FIFTY FIVE FRANCS VIA SOCIETE GENERALE ISSUE SPLIT INTO TWO POINT FOUR BILLION FRANC GLOBAL TRANCHE AND ONE POINT ONE BILLION FRANC TRANCHE AS PRIORITY PLACEMENT FOR EXISTING SHAREHOLDERS BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES AT THREE HUNDRED SEVEN FRANCS FROM FEBRUARY SECOND TO DECEMBER THIRTY FIRST TWO THOUSAND PREMIUM OVER FRIDAY'S CLOSING SHARE PRICE RISES FROM TWELVE POINT SEVEN EIGHT PERCENT ON DAY OF LAUNCH TO THIRTY FIVE POINT SEVEN EIGHT PERCENT AT MATURITY IF NOT CONVERTED BONDS YIELD FIVE POINT OH THREE PERCENT AT MATURITY BONDS CALLABLE FROM JANUARY FIRST NINETEEN NINETY SEVEN AT ACCRETED VALUE IF SHARE PRICE AT LEAST ONE HUNDRED TEN PERCENT OF CONVERSION PRICE CREDIT SUISSE GIBRALTAR SWISS PARENT SEVENTY FIVE MILLION DOLLARS OF FIVE POINT TWO FIVE PERCENT EUROBONDS DUE FEBRUARY FIRST NINETEEN NINETY SIX AT ISSUE PRICE PAR VIA C. S. FIRST BOSTON INCORPORATED REDEMPTION AT ONE HUNDRED PERCENT PLUS FOLLOWING FIFTEEN TIMES DIFFERENCE OF SEVEN POINT TWO TWO PERCENT LESS S. THREE MINIMUM ZERO S. THREE EQUALS AVERAGE OF THREE YEAR OFFER SWAP RATES FOR ITALIAN LIRE SPANISH PESETA AND SWEDISH KRONE THREE DAYS PRIOR TO MATURITY S. THREE DETERMINED JANUARY TWENTY NINTH NINETEEN NINETY SIX SETTINGS OF THREE YEAR LIRE SWAP RATE PESETA SWAP RATE AND KRONE SWAP RATE AS DETERMINED BY REFERENCE TO FIVE DEALERS GUARANTOR CREDIT SUISSE S. A. FEES UNDISCLOSED DENYO COMPANY JAPAN FIFTY MILLION DOLLARS OF ONE POINT THREE SEVEN FIVE PERCENT EUROBONDS WITH EQUITY WARRANTS DUE JANUARY TWENTY SEVENTH NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA NIKKO EUROPE P. L. C. GUARANTOR DAI ICHI KANGYO BANK WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES FROM FEBRUARY TENTH TO JANUARY TWENTIETH NINETEEN NINETY EIGHT TERMS FIXED TUESDAY FEES TWO POINT TWO FIVE LESS ZERO POINT TWO FOR LEAD MANAGER EUROFIMA SUPRANATIONAL TWO HUNDRED TWENTY FIVE MILLION E. C. U.S OF FIVE POINT FIVE PERCENT EUROBONDS DUE FEBRUARY NINTH TWO THOUSAND ONE AT ISSUE PRICE ONE HUNDRED ONE POINT FIVE SEVEN FIVE VIA SWISS BANK CORPORATION REOFFERED AT PAR FEES ONE POINT EIGHT SEVEN FIVE EUROPEAN INVESTMENT BANK SOVEREIGN ONE TRILLION LIRE OF SEVEN POINT FOUR FIVE PERCENT EUROBONDS DUE FEBRUARY FOURTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE PAR VIA BANCA DI ROMA CREDITO ITALIANO ISTITUTO BANCARIO SAN PAOLO DI TORINO AND BANCA COMMERCIALE ITALIANA BONDS YIELD SEVEN POINT FOUR FIVE PERCENT FEES ZERO POINT TWO FIVE FINNISH EXPORT CREDIT LIMITED FINNISH AGENCY TWO BILLION FINNISH MARKKAS OF SIX PERCENT GLOBAL BONDS DUE JANUARY FIFTEENTH NINETEEN NINETY NINE AT ISSUE AND REOFFER PRICE NINETY NINE POINT FOUR FIVE VIA GOLDMAN SACHS INTERNATIONAL LIMITED BONDS YIELD SIX POINT ONE THREE PERCENT A MARGIN OF TWENTY FIVE BASIS POINTS OVER COMPARABLE FINNISH GOVERNMENT BOND FEES ZERO POINT THREE FORD CREDIT AUSTRALIA LIMITED U. S. PARENT SEVENTY FIVE MILLION AUSTRALIAN DOLLARS OF SIX POINT SEVEN FIVE PERCENT EUROBONDS DUE FEBRUARY TWENTY FIFTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED ONE POINT FOUR VIA HAMBROS BANK LIMITED BONDS YIELD SIX POINT EIGHT SIX PERCENT A SPREAD OF FIFTY EIGHT BASIS POINTS ABOVE AUSTRALIAN GOVERNMENT BOND CURVE OF FEBRUARY NINETEEN NINETY NINE GUARANTOR FORD MOTOR CREDIT COMPANY FEES TWO LESS ZERO POINT ONE TWO FIVE FOR LEAD MANAGER INTERNATIONAL FINANCE CORPORATION SUPRANATIONAL TEN BILLION YEN OF FLOATING RATE EURONOTES DUE JANUARY TWENTIETH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED FIVE POINT NINE NINE VIA NIKKO EUROPE P. L. C. PAYABLE SEMIANNUALLY AT SIXMONTH YEN LONDON INTERBANK OFFERED RATE PLUS SIXTY BASIS POINTS FEES UNDISCLOSED ITALY SOVEREIGN THREE HUNDRED BILLION YEN OF THREE POINT FIVE PERCENT EUROBONDS DUE JUNE TWENTIETH TWO THOUSAND ONE AT ISSUE AND REOFFER PRICE NINETY NINE POINT NINE EIGHT VIA DAIWA EUROPE LIMITED AND J. P. MORGAN SECURITIES LIMITED REOFFERED TO YIELD THREE POINT FIVE OH THREE PERCENT A MARGIN OF FORTY ONE BASIS POINTS OVER COMPARABLE JAPANESE GOVERNMENT BOND FEES ZERO POINT THREE PAYABLE SEMIANNUALLY KFW INTERNATIONAL FINANCE INCORPORATED GERMAN PARENT TWO HUNDRED FIFTY MILLION CANADIAN DOLLARS OF SIX POINT FIVE PERCENT EUROBONDS DUE FEBRUARY SIXTEENTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED POINT THREE VIA BARCLAYS DE ZOETE WEDD SECURITIES LIMITED AND DAIWA EUROPE LIMITED REOFFERED AT NINETY EIGHT POINT SIX TWO FIVE TO YIELD SIX POINT SIX NINE PERCENT A MARGIN OF TWELVE BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND GUARANTOR KREDITANSTALT FUER WIEDERAUFBAU FEES TWO KURARAY COMPANY JAPAN TWO HUNDRED MILLION DOLLARS OF ONE POINT FIVE PERCENT EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE JANUARY TWENTY SEVENTH NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA DAIWA EUROPE LIMITED WARRANTS EXERCISABLE TO PURCHASE ORDINARY COMPANY SHARES FROM FEBRUARY FOURTEENTH TO JANUARY THIRTEENTH NINETEEN NINETY EIGHT TERMS FIXED JANUARY NINETEENTH FEES TWO POINT TWO FIVE LESS ZERO POINT ONE FIVE FOR LEAD MANAGER MANITOBA CANADIAN PROVINCE THREE HUNDRED FIFTY MILLION DOLLARS OF NOTES DUE JANUARY NINETEENTH TWO THOUSAND FOUR PRICED AS SIX POINT ONE TWO FIVES AT NINETY NINE POINT NINE OH THREE TO YIELD SIX POINT ONE THREE EIGHT PERCENT ACCORDING TO M. C. M. CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF FIFTY BASIS POINTS ABOVE U. S. TREASURYS RATED SINGLE A ONE BY MOODY'S AND SINGLE A PLUS BY S. AND P. THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND COMPANY NGK SPARKPLUG COMPANY JAPAN TWO HUNDRED FIFTY MILLION DOLLARS OF ONE POINT FIVE PERCENT EUROBONDS WITH EQUITY WARRANTS DUE JANUARY TWENTY SEVENTH NINETEEN NINETY EIGHT AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LIMITED WARRANTS EXERCISABLE TO PURCHASE ORDINARY COMPANY SHARES FROM FEBRUARY TENTH TO JANUARY TWENTIETH NINETEEN NINETY EIGHT TERMS FIXED TUESDAY FEES TWO POINT TWO FIVE LESS ZERO POINT TWO FOR LEAD MANAGER NORDIC INVESTMENT BANK SUPRANATIONAL THIRTY BILLION YEN OF FLOATING RATE EURONOTES DUE JANUARY TWENTY FIFTH NINETEEN NINETY NINE AT ISSUE PRICE ONE HUNDRED FOUR POINT EIGHT TWO VIA NIKKO EUROPE P. L. C. PAYABLE SEMIANNUALLY AT SIXMONTH YEN LIBOR PLUS ZERO POINT FIVE POINT LAUNCHED OFF EUROMEDIUM TERM NOTE PROGRAM FEES UNDISCLOSED VIENNA AUSTRIAN CITY TWO HUNDRED MILLION SWISS FRANCS OF FOUR PERCENT PUBLICLY LISTED BONDS DUE FEBRUARY SIXTEENTH TWO THOUSAND ONE PRICED AT ONE HUNDRED TWO POINT FIVE VIA UNION BANK OF SWITZERLAND FEES TWO POINT FIVE WEST L. B. FINANCE CURACAO N. V. GERMAN PARENT ONE BILLION MARKS OF SIX PERCENT EUROBONDS DUE FEBRUARY NINTH TWO THOUSAND FOUR AT ISSUE PRICE ONE HUNDRED TWO POINT TWO VIA WESTDEUTSCHE LANDESBANK GIROZENTRALE RECOMMENDED REOFFER NINETY NINE POINT EIGHT TO YIELD SIX POINT OH THREE PERCENT A SPREAD OF FORTY FIVE BASIS POINTS ABOVE COMPARABLE GERMAN BUND GUARANTOR WESTDEUTSCHE LANDESBANK FEES TWO POINT FIVE LLOYD L. HILL FORMER PRESIDENT OF KIMBERLY QUALITY CARE WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR. HILL HAS ALSO BEEN AN APPLEBEE'S DIRECTOR SINCE NINETEEN EIGHTY NINE HE SUCCEEDS KENNETH HILL WHO WAS NAMED TO THE NEW POST OF PRESIDENT OF INTERNATIONAL DEVELOPMENT AT THE RESTAURANT CONCERN THE TWO MEN AREN'T RELATED TUCSON ELECTRIC POWER COMPANY SAID IT WON A RATE INCREASE FROM THE ARIZONA CORPORATION COMMISSION THAT WILL BOOST ANNUAL REVENUE BY TWENTY ONE POINT SIX MILLION DOLLARS THE COMPANY HAD REQUESTED A FORTY NINE MILLION DOLLAR RATE INCREASE PROMPTED BY THE STATE REGULATORS' DECISION THE COMPANY SAID IT EXPECTED TO TAKE A WRITE OFF OF THIRTEEN MILLION DOLLARS TO FIFTEEN MILLION DOLLARS AGAINST NINETEEN NINETY THREE RESULTS RELATED TO ONE OF ITS PLANTS YOU THOUGHT YOU HAD SURVIVED EVERYTHING THE MERGERS OF THE NINETEEN EIGHTIES THE LAYOFFS OF THE NINETEEN NINETIES NOW YOU HAVE BEEN UNFAIRLY ACCUSED OF SEXUAL HARASSMENT AT WORK IS THIS THE END OF YOUR CAREER NOT NECESSARILY YOUR JOB AND YOUR REPUTATION CAN SURVIVE EVEN A CRISIS OF THIS MAGNITUDE CAREER ADVISERS SAY BUT YOU MUST TAKE IMMEDIATE ACTION TO PROTECT YOURSELF MANEUVERING TACTFULLY AMONG SUPERIORS AND SUBORDINATES ABOVE ALL YOU SHOULD KEEP A COOL HEAD QUOTE YOU DON'T WANT TO DO OR SAY ANYTHING THAT CAN LEAVE A BAD IMPRESSION OR DAMAGE YOUR REPUTATION QUOTE ANY FURTHER EXPLAINS H. RAD EANES THE THIRD A NEW YORK SENIOR CONSULTANT WITH PERSONNEL DECISIONS INCORPORATED A MINNEAPOLIS CONSULTING FIRM THAT SPECIALIZES IN ASSESSMENT AND DEVELOPMENT YOU WANT TO BE BEYOND REPROACH A SUCCESSFUL SENIOR MANAGER AT A MAJOR MANUFACTURER IN THE SOUTHEAST TORPEDOED HIS CAREER BECAUSE HE DIDN'T KEEP COOL AFTER HIS SECRETARY FALSELY ACCUSED HIM OF SEXUAL HARASSMENT HE LAUNCHED AN ANGRY EXPLETIVE FILLED TIRADE WHEN HIS BOSS TOLD HIM ABOUT THE ALLEGATIONS THE TWO HUNDRED SEVENTY FIVE THOUSAND DOLLAR A YEAR EXECUTIVE REPEATED HIS TANTRUM TO COLLEAGUES AND SUBORDINATES AND THEN UNSUCCESSFULLY TRIED TO GET HIS SECRETARY FIRED COMPANY OFFICIALS QUICKLY CLEARED THE ACCUSED MANAGER BUT THAT DIDN'T HELP HIM MUCH HE HAD LOST THE RESPECT AND CONFIDENCE OF NEARLY EVERYONE MR. EANES RECALLS SIX MONTHS LATER THE EXECUTIVE QUIT TO TAKE A LOWER PAYING JOB AT A SMALLER BUSINESS ANGRY OUTBURSTS GIVE YOUR ACCUSER MORE CREDIBILITY AND UNDERMINE YOUR MANAGEMENT AUTHORITY NOTES ADELE SCHEELE A NEW YORK CAREER STRATEGIST RAGE TOO OFTEN IS ASSOCIATED WITH GUILT SHE ADDS INSTEAD DOCTOR SCHEELE ADVISES YOU SHOULD RESTRICT YOUR EMOTIONAL DISPLAYS TO ASTONISHMENT HURT DISBELIEF AND EVEN GRIEF BUT DON'T IGNORE OR SCOFF AT UNFOUNDED SEXUAL HARASSMENT CHARGES WASHINGTON D. C. AEROSPACE EXECUTIVE D. T. HAMILTON SAYS THAT HE LANDED IN THE UNEMPLOYMENT LINE LAST YEAR BECAUSE HE DIDN'T TAKE A DISGRUNTLED UNDERLING'S ALLEGATIONS VERY SERIOUSLY THE FEMALE PROFESSIONAL VOWED TO CHARGE THE EXECUTIVE WITH SEXUAL HARASSMENT AFTER HE REJECTED HER FOR A PROMOTION I JUST SHRUGGED OFF THE THREAT AND KEPT IT TO MYSELF THE FIFTY YEAR OLD MR. HAMILTON REMEMBERS SEXUAL HARASSMENT RUMORS SOON SPREAD HOWEVER WHEN A COLLEAGUE QUESTIONED MR. HAMILTON ABOUT THEM HE SAYS HE RESPONDED WITH A JOKE ABOUT HIS IRRESISTIBLE CHARISMA A FEW DAYS LATER MR. HAMILTON CONFRONTED HIS ACCUSER IN THE HALL AND ATTEMPTED TO BREAK THE ICE WITH A FATHERLY PAT ON HER BACK INSTEAD HE SAYS SHE WHIRLED AROUND AND YELLED DON'T EVER TOUCH ME TO SAFEGUARD YOUR JOB IN SUCH A TICKLISH SITUATION YOU SHOULD AVOID FACE TO FACE CONFRONTATIONS WITH YOUR ACCUSER EXPERTS SAY THESE USUALLY TURN UGLY AND COULD DISTORT YOUR TRUE INTENTIONS QUOTE REMEMBER THE DIE HAS BEEN CAST QUOTE SAYS MR. EANES OF PERSONNEL DECISIONS WHO HELPS COMPANIES TO INVESTIGATE SEXUAL HARASSMENT CHARGES NOTHING YOU CAN SAY WILL MAKE ACCUSERS CHANGE THEIR MINDS NOW MR. HAMILTON MADE ANOTHER SERIOUS MISTAKE HE FAILED TO INFORM HIS BOSS ABOUT THE ALLEGATION UNABLE TO DECIPHER THE TRUTH THE COMPANY ASKED BOTH STAFF MEMBERS TO RESIGN MR. HAMILTON NOW A PART TIME CONSULTANT SAYS HE IS STILL LOOKING FOR ANOTHER FULL TIME JOB AS SOON AS YOU LEARN YOU HAVE BEEN UNFAIRLY ACCUSED OF SEXUAL HARASSMENT YOU SHOULD INFORM YOUR SUPERIOR AND SOLICIT HIS OR HER SUPPORT SUGGESTS CHERYL HEISLER A CHICAGO CAREER COUNSELOR EXPLAIN POSSIBLE MOTIVES FOR THE CHARGE IF NECESSARY HIRE AN ATTORNEY DON'T WAIT FOR A FORMAL COMPLAINT MS. HEISLER URGES BY THAT TIME IT MAY BE TOO LATE TO SAVE YOUR CAREER WHEN YOU GO INTO YOUR BOSS'S OFFICE BRING A DETAILED WRITTEN LOG AND OTHER EVIDENCE OF YOUR CASE TRY TO RECONSTRUCT RELEVANT MEETINGS AND PRIOR DISAGREEMENTS WITH YOUR ACCUSER INCLUDING ANY PERFORMANCE PROBLEMS AND TURF BATTLES COUNSELS CLIFF PALEFSKY A PLAINTIFFS ATTORNEY IN SAN FRANCISCO IF YOU WANT TO SAVE YOUR JOB DOCUMENT EVERYTHING HE SAYS SHODDY DOCUMENTATION FORCED THE PRESIDENT AND FOUNDER OF ONE NEW YORK EXECUTIVE SEARCH FIRM TO SETTLE A SEXUAL HARASSMENT CASE LAST YEAR SHE SAYS THAT ONE OF HER RECRUITERS SUED HER AFTER SHE HAD FIRED HIM FOR POOR PERFORMANCE THE BUSINESS OWNER RECOLLECTS THAT SHE HADN'T KEPT TRACK OF HER VERBAL WARNINGS HAD NEVER GIVEN HIM A WRITTEN REPRIMAND AND COULDN'T EVEN FIND COPIES OF HIS SLOPPY WORK SHE DECIDED TO SETTLE OUT OF COURT EVEN THOUGH HER DECISION CAUSED HER TO LOSE SOME CLIENTS AND TO MOVE TO SMALLER QUARTERS ONCE SOMEONE FORMALLY ACCUSES YOU OF SEXUAL HARASSMENT YOU SHOULD DISCUSS THE CHARGES FRANKLY WITH EVERYONE YOU KNOW AT YOUR WORKPLACE WILLARD THOMPSON SAYS THAT APPROACH KEPT HIM FROM BEING FIRED OVER FALSE SEXUAL HARASSMENT CHARGES PUBLIC SERVICE COMPANY OF COLORADO SUSPENDED MR. THOMPSON A MAINTENANCE MAN FOR A MONTH BECAUSE HE ALLEGEDLY HAD VERBALLY BOTHERED A CUSTOMER'S FEMALE EMPLOYEES MR. THOMPSON NOW RETIRED SAYS THAT HE NOTIFIED EVERY PUBLIC SERVICE HIGHER UP HE KNEW AND THEN RELAYED HIS DILEMMA TO HIS COLLEAGUES AS A RESULT HE SAYS BOTH SENIOR EXECUTIVES AND CO WORKERS VOUCHED FOR HIS CHARACTER DURING THE COMPANY'S INTERNAL INVESTIGATION I HAD SEVERAL PEOPLE WHO WERE WILLING TO STAND UP FOR ME HE NOTES ROBERT R. AURAY JUNIOR FORTY TWO YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS PRIVATELY HELD PERSONAL COMPUTER SYSTEMS CONCERN MR. AURAY HAD BEEN VICE PRESIDENT OF CUSTOMER SERVICE AND OPERATIONS PLANNING AT AMERICAN NATIONAL CAN COMPANY A UNIT OF PECHINAY INTERNATIONAL HE SUCCEEDS BERNARD J. WHITE FORTY NINE WHO LEFT THE COMPANY LAST SEPTEMBER TO PURSUE OTHER INTERESTS BEVERLY B. BYRON WAS ELECTED A DIRECTOR OF THIS AIRCRAFT MAKER AND DEFENSE CONTRACTOR MRS. BYRON SIXTY ONE YEARS OLD WAS A CONGRESSWOMAN FROM MARYLAND FROM NINETEEN SEVENTY EIGHT UNTIL NINETEEN NINETY TWO WHEN SHE WAS APPOINTED TO HER CURRENT POSITION BY PRESIDENT BUSH TO THE EIGHT MEMBER DEFENSE BASE CLOSURE AND REALIGNMENT COMMISSION SHE FILLS THE VACANCY CREATED BY THE DEATH OF ROSCOE ROBINSON LAST YEAR THIS IS WHAT OCCURS AT A RESPECTED BUT OBSCURE PREP SCHOOL WHEN A BILLIONAIRE ALUMNUS SUDDENLY DECIDES TO GIVE HIS ALMA MATER ONE HUNDRED MILLION DOLLARS THE FACULTY EXPECTS IMMEDIATE TEN THOUSAND DOLLAR A YEAR RAISES OR AT THE VERY LEAST ONE TIME TEN THOUSAND DOLLARS BONUSES THE ADMISSIONS OFFICE BECOMES FLOODED WITH INQUIRIES AND APPLICATIONS MOSTLY FROM PROSPECTIVE STUDENTS WHO EXPECT TO GO TO THE SCHOOL FOR FREE PARENTS OF AT LEAST TEN APPLICANTS WHO RECEIVED REJECTION LETTERS EITHER FOR ADMISSION OR FINANCIAL AID DEMAND THE BILLIONAIRE'S HOME ADDRESS SO THEY CAN COMPLAIN THAT HIS MONEY ISN'T BEING SPENT WISELY SUCH IS THE FATE OF THE PEDDIE SCHOOL A PRIVATE SECONDARY BOARDING AND DAY SCHOOL WITH FOUR HUNDRED EIGHTY TWO STUDENTS SINCE PHILANTHROPIST AND PEDDIE GRADUATE WALTER H. ANNENBERG DECIDED SIX MONTHS AGO TO GIVE IT THE EDUCATIONAL EQUIVALENT OF A WINNING LOTTERY TICKET WHILE MANY BOARDING SCHOOLS ARE HURTING BECAUSE OF A DECLINE IN THE NUMBER OF PROSPECTIVE STUDENTS WHO CAN AFFORD TO PAY THEIR RISING TUITIONS PEDDIE IS SITTING PRETTY AS A RESULT OF THE ANNENBERG GIFT SCHOOL OFFICIALS SAY THEY WILL BE ABLE TO BUILD A MORE DIVERSE STUDENT BODY AND ENHANCE LEARNING THE MONEY WHICH CATAPULTED PEDDIE FROM NOWHERE ON LISTS OF BOARDING SCHOOL ENDOWMENTS TO THE TOP SEVEN ARRIVED BY WIRE LAST MONTH UNDER THE DONATION'S TERMS ONLY INTEREST NOT PRINCIPAL CAN BE SPENT SCHOOL ADMINISTRATORS HAD ALREADY DECIDED AFTER HUDDLING WITH KEY BOARD MEMBERS DURING TWO OFF CAMPUS RETREATS TO HAVE FIVE DIFFERENT MONEY MANAGERS INVEST THE GIFT THEY HOPE FOR A RETURN OF AT LEAST FIVE PERCENT OR SIX PERCENT OR FIVE MILLION DOLLARS TO SIX MILLION DOLLARS A YEAR A HEFTY ADDITION TO THE SCHOOL'S CURRENT TEN POINT FIVE MILLION DOLLAR BUDGET MR. ANNENBERG STIPULATED THAT FIFTY FIVE PERCENT OF THE NEW FUNDS BE USED FOR FINANCIAL AID HOW TO SPEND THE REST SPARKED A VERITABLE AVALANCHE OF SUGGESTIONS FROM FACULTY ADMINISTRATORS AND OUTSIDERS SOME WANTED TO BUILD NEW DORMS OTHERS PROPOSED CONSTRUCTING A NEW HOCKEY RINK SQUASH COURTS A STUDENT CENTER AND AN EXPANSION OF THE DINING HALL AT THE SAME TIME SCHOOL OFFICIALS WERE INUNDATED WITH OFFERS FROM MONEY MANAGERS TO PROVIDE INVESTMENT ADVICE FROM ARCHITECTS WHO ASSUMED A CAMPUS BUILDING BOOM WAS IN THE OFFING AND FROM ARTISTS SEEKING COMMISSIONS FOR BUSTS OR PORTRAITS OF MR. ANNENBERG IN THE END CAPITAL IMPROVEMENTS AND ARTWORKS WERE RULED OUT AFTER ALL THANKS LARGELY TO MORE THAN FORTY MILLION DOLLARS IN PREVIOUS ANNENBERG GIFTS THE SCHOOL'S POSTCARD PRETTY CAMPUS ALREADY BOASTS AN ARTS CENTER A NEW SEVEN POINT EIGHT MILLION DOLLARS LIBRARY A HUGE ATHLETIC CENTER NEW DORMS AND A STATE OF THE ART COMPUTER NETWORK INSTEAD PEDDIE DECIDED TO USE TWENTY PERCENT TO TWENTY FIVE PERCENT OF THE INVESTMENT INCOME TO NEARLY DOUBLE THE SALARIES OF THE SCHOOL'S SEVENTY TWO TEACHERS AND STAFF MEMBERS OVER FIVE YEARS MR. DEGRAY HOPES THAT WILL SATISFY THE SCHOOL'S EMPLOYEES WHO EARN ON AVERAGE ABOUT TWENTY FIVE THOUSAND FIVE HUNDRED DOLLARS A YEAR AND WHO WERE ARGUING FOR RAISES BECAUSE THEIR SALARIES ARE IN THE BOTTOM THIRD IN THE RANKS OF PREP SCHOOL COMPENSATION BY NINETEEN NINETY EIGHT HE SAYS PEDDIE'S AVERAGE SALARY SHOULD JUMP TO THE TOP QUARTER SOME FACULTY MEMBERS ARE WITHHOLDING JUDGMENT QUOTE I'M GOING TO SEE WHAT SPECIFICS ARE GIVEN BEFORE I STATE WHETHER I LIKE IT OR NOT QUOTE SAYS FRANK TOWNE A CHEMISTRY TEACHER WHO HAS BEEN AT PEDDIE THIRTY ONE YEARS THE REST OF MR. ANNENBERG'S GIFT WILL BE SPENT ON EDUCATIONAL INITIATIVES INCLUDING AN EXPERIMENTAL LONGER YEAR CURRICULUM FOR THIRTY SELECT SOPHOMORES THE SCHOOL ALSO HOPES TO ADD AT LEAST FOUR FACULTY MEMBERS THE INCREASE IN FINANCIAL AID WILL HAVE THE GREATEST IMPACT ON THE SCHOOL PEDDIE OFFICIALS BELIEVE LAST SCHOOL YEAR ONLY TWENTY EIGHT PERCENT OF ITS STUDENTS RECEIVED AID TOTALING ABOUT ONE POINT FIVE MILLION DOLLARS NEXT YEAR THE BUDGET WILL DOUBLE AND ABOUT HALF OF ALL STUDENTS WILL BENEFIT PETER A. QUINN PEDDIE'S ADMISSIONS DIRECTOR INTENDS TO DIVERSIFY THE STUDENT BODY ADMITTING MORE MINORITY CANDIDATES AS WELL AS MIDDLE CLASS APPLICANTS WHO COULD NOT NORMALLY ATTEND A SCHOOL THAT COSTS BOARDERS EIGHTEEN THOUSAND NINE HUNDRED DOLLARS A YEAR HE EMPHASIZES THAT HE DOESN'T WISH TO COMPETE WITH TOP TIER PREP SCHOOLS AND ONLY ACCEPT KIDS WHO GET STRAIGHT AS AND STAR IN LACROSSE AND PLAY FOUR INSTRUMENTS BUT ALSO STUDENTS WHO SHOW A LOT OF POTENTIAL THERE'S BEEN SOME ANXIETY ON THE PART OF ALUMNI AND ON THE PART OF PARENTS OF CURRENT STUDENTS WITH YOUNGER SIBLINGS THAT SUDDENLY WE'RE GOING TO BE A PLACE THAT YOU CANNOT GET INTO UNLESS YOU'RE SOME SORT OF BRAIN SURGEON HE SAYS AND THAT'S NOT WHAT WE WANT VIRTUALLY ALL PEDDIE GRADUATES GO ON TO COLLEGE WITH ABOUT FIFTEEN PERCENT ATTENDING THE NATION'S TOP SCHOOLS MR. QUINN WILL CERTAINLY HAVE A LARGER POOL FROM WHICH TO CHOOSE NEW STUDENTS APPLICATIONS FOR NEXT FALL DUE NO LATER THAN JANUARY THIRTY FIRST HAVE MORE THAN DOUBLED TO TWO HUNDRED SIXTY WITH ANOTHER FORTY EXPECTED THE INCREASE OFFICIALS SAY IS UNQUESTIONABLY DUE TO NEWS OF MR. ANNENBERG'S GIFT THE ONLY REASON WE APPLIED WAS TO GET SOME OF THAT SCHOLARSHIP DOUGH SAYS RICH FRIEDMAN EXECUTIVE EDITOR OF BYTE MAGAZINE AND THE FATHER OF A THIRTEEN YEAR OLD QUITE FRANKLY I NEVER HEARD OF THE PEDDIE SCHOOL BEFORE THE GIFT MR. FRIEDMAN ADDS THOUGH THAT HE HAS BEEN VERY IMPRESSED WITH THE ENTHUSIASM OF THE SCHOOL'S ADMISSIONS STAFF MR. QUINN SAYS HE ISN'T WORRIED THAT SOME APPLICANTS HAVE BEEN ATTRACTED BY THE SCHOOL'S NEW FOUND LARGESS QUOTE I DON'T REALLY CARE HOW THEY KNOW ABOUT US AS LONG AS WHAT THEY HEAR IS POSITIVE QUOTE HE SAYS NOT SURPRISINGLY THE EIGHTY FIVE YEAR OLD MR. ANNENBERG A C. STUDENT WHO GRADUATED FROM PEDDIE IN NINETEEN TWENTY SEVEN HAS BECOME A HERO ON CAMPUS PEDDIE HELD A THANKS WALT DAY TO HONOR THE FORMER PUBLISHER AND U. S. AMBASSADOR LAST OCTOBER HIS WORDS STRIVE FOR THE HIGHEST QUALITY OF CITIZENSHIP APPEAR AT THE ENTRANCE TO THE ANNENBERG LIBRARY IN THE ANNENBERG BUILDING MR. ANNENBERG WHO RECENTLY ANNOUNCED HE WAS ALSO DONATING FIVE HUNDRED MILLION DOLLARS TO REFORM PUBLIC EDUCATION HAS BEEN GIVING MONEY TO PEDDIE SINCE THE DAY HE GRADUATED WHEN HE CONTRIBUTED SEVENTEEN THOUSAND DOLLARS FOR A NEW TRACK ASKED IF MORE DONATIONS ARE ANTICIPATED MR. DEGRAY REPLIED OBVIOUSLY WE DON'T EXPECT MORE OR I DON'T BUT WE WOULDN'T TURN IT DOWN ADDED ASSISTANT HEAD PENNEY RIEGELMAN QUOTE AT SOME AUCTIONS THEY RAFFLE OFF WHOLE DAYS WITH CELEBRITIES QUOTE CORKY SHERWOOD ON MURPHY BROWN JANUARY THIRD NINETEEN NINETY FOUR AT THE RISK OF FUELING EVEN MORE CYNICISM ABOUT JOURNALISTS I WANT YOU TO PICTURE THIS IT WAS THE TWENTIETH ANNIVERSARY OF THE WATERGATE SCANDAL A HIGH POINT FOR FIRST AMENDMENT ADVOCATES IF THERE EVER WAS ONE AT THAT VERY MOMENT A YEAR AGO NOVEMBER THE SOCIETY OF PROFESSIONAL JOURNALISTS WAS HOLDING ITS ANNUAL CONVENTION AND HOPING TO RAISE MONEY WITH THE AUCTION OF SOME HISTORIC ITEMS THE NIXON RESIGNS FRONT PAGE OF THE WASHINGTON POST AUTOGRAPHED BY BEN BRADLEE AND A FIRST EDITION OF ALL THE PRESIDENT'S MEN AUTOGRAPHED BY BOB WOODWARD AND CARL BERNSTEIN HIGH QUALITY JOURNALISTIC MEMORABILIA IN OTHER WORDS SHOULD HAVE BEEN THE BIG BUCK ITEMS AT THIS AUCTION BUT THE BIG BUCK JOURNALISTS A MERE HANDFUL OF COURSE WERE SITTING ON THEIR WALLETS IT TURNS OUT THAT THEY WERE WAITING TO BID ON A TRUE HIGH POINT OF JOURNALISM A CAMEO APPEARANCE ON MURPHY BROWN THE SIX YEAR OLD TELEVISION SITCOM THAT HAS PLACED CANDICE BERGEN AMONG THE RANKS OF THE MOST RESPECTED REAL OR VIRTUALLY REAL JOURNALISTS IN THE COUNTRY WATERGATE MEMENTOS MIGHT AS WELL HAVE BEEN HOLIDAY INN BAR NAPKINS TO THIS CROWD THE FIRST TWO BIDS TOPPED THE HIGHEST OFFERS FOR BRADLEE AND WOODWARD AND BERNSTEIN THE BID JUMPED TO ONE THOUSAND DOLLARS TWO THOUSAND DOLLARS I DROPPED OUT AT TWO THOUSAND FIVE HUNDRED DOLLARS THREE THOUSAND DOLLARS THREE THOUSAND FIVE HUNDRED DOLLARS SOLD FOR FOUR THOUSAND DOLLARS TO RUTH ANN LEACH A COLUMNIST FOR THE NASHVILLE BANNER YOU CAN'T BUY PUBLICITY LIKE THIS WAIT A MINUTE I JUST DID MARTY CRANE ON QUOTE MURPHY BROWN QUOTE JANUARY THIRD NINETEEN NINETY FOUR IN THE YEAR AFTER THE AUCTION MS. LEACH AND THE SOCIETY OF PROFESSIONAL JOURNALISTS GOT MORE PUBLICITY FOR THE MURPHY BROWN BID THAN ANY STORY SHE EVER WROTE OR ANY PUBLIC ACCESS BATTLE THE SOCIETY EVER FOUGHT THE NEWS MADE THE ASSOCIATED PRESS WIRES C. N. N. THE DALLAS MORNING NEWS REAL JOURNALIST TO APPEAR WITH ACTRESS PLAYING JOURNALIST I WAS ASTOUNDED AT THE BROUHAHA AND I'M THE ONE WHO HAD ARRANGED WITH THE SHOW TO HAVE THE CAMEO ROLE DONATED WHY WOULD REAL JOURNALISTS GO BANANAS AND EVEN SHELL OUT FOUR THOUSAND DOLLARS TO BE ON A T. V. SHOW MY THEORY IS THAT MOST JOURNALISTS CAN BE COUNTED ON TO LIKE THREE THINGS THEIR BYLINES SEEING THEMSELVES ON T. V. AND SEEING ACTORS PORTRAY JOURNALISTS ON T. V. FOR A JOURNALIST LANDING A MURPHY BROWN GUEST SHOT IS LIKE HITTING A GRAND SLAM IN THE MEDIA LEAGUE SOFTBALL TOURNAMENT MAYBE IT'S BECAUSE HOLLYWOOD HISTORICALLY HAS MADE US HACKS MORE ROMANTIC AND GLAMOROUS THAN WE REALLY ARE THINK OF THE GREAT ONSCREEN JOURNALISTS TRACY AND HEPBURN IN WOMAN OF THE YEAR LOU GRANT AND MARY RICHARDS ON THE MARY TYLER MOORE SHOW LOIS LANE AND CLARK KENT IN QUOTE SUPERMAN QUOTE RUTH ANN LEACH AND ME ON MURPHY BROWN FASCINATING PROVOCATIVE AND EMINENTLY WATCHABLE MURPHY BROWN QUOTING T. V. GUIDE ABOUT HERSELF JANUARY THIRD NINETEEN NINETY FOUR WHEN THE PRODUCERS OF MURPHY BROWN FINALLY SETTLED ON A DATE FOR MS. LEACH'S DEBUT THEY TOLD HER SHE COULD BRING A GUEST SHE MADE IT INTO MY PERSONAL JOURNALISM HALL OF FAME BY INVITING ME ON ACCOUNT OF MY BEING AUCTION CHAIRMAN THINKING UP THE IDEA OF A MURPHY BROWN CAMEO AND AS SHE SAID WANTING IT SO BAD EVEN IF I DID WIMP OUT WHEN THE BIDDING PASSED TWO THOUSAND FIVE HUNDRED DOLLARS I ACCEPTED THE INVITATION WITH THE COOLNESS BEFITTING A PROFESSIONAL PRINT JOURNALIST I CANCELED THE FOURTH DAY OF A LONG PRE CHRISTMAS WEEKEND WITH MY FAMILY I CASHED IN FREQUENT FLIER MILES I'D BEEN SAVING FOR A TRIP TO EUROPE WITH A FRIEND I FLEW THE RED EYE FROM WASHINGTON TO LOS ANGELES I TRIED TO SLEEP BUT ONLY MANAGED TO ENSURE THAT SOME CHIROPRACTOR'S KID WILL MAKE IT THROUGH COLLEGE WE WERE ALLOWED ON THE SET AT WARNER BROTHERS AT TEN A. M. SHORTLY BEFORE REHEARSALS BEGAN FOR FILMING THAT NIGHT SEEING THE CAST DO THEIR BIT ON THE SET OF F. Y. I. WAS LIKE WATCHING REAL REPORTERS IN ACTION WELL DRESSED GOOD LOOKING PEOPLE ENGAGING IN WITTY REPARTEE WHILE PRODUCING GREAT JOURNALISM AND I AM MARIE OF ROMANIA MOST REPORTERS MISS POLYESTER IF THEY DON'T STILL OWN AND WEAR SOME GOOD LOOKING REPORTERS WORK FOR TELEVISION THE REST OF US TRY TO DO ALL INTERVIEWS BY TELEPHONE NEWSROOM CONVERSATIONS WILL PRODUCE THE OCCASIONAL CLEVER RIPOSTE BUT SUSTAINED REPORTER HUMOR IS MORE LIKELY TO MEAN FIFTEEN MINUTES OF FARM ANIMAL NOISES ON DEADLINE NEVERTHELESS THE QUOTE MURPHY BROWN QUOTE CAST DOES A PRETTY DARNED GOOD JOB OF IMITATING JOURNALISTS ESPECIALLY WHEN AN ACTOR BLOWS A LINE AND INVOKES ANOTHER FARM PRODUCT NOW THAT'S JOURNALISM HAVE YOU NO SHAME AS A MEMBER OF THE MEDIA YOU HAVE A CHANCE TO UPLIFT THE PUBLIC JIM DIAL TO MARTY CRANE MURPHY BROWN JANUARY THIRD NINETEEN NINETY FOUR WHILE WAITING FOR THE REHEARSAL OF OUR SCENE MS. LEACH AND I INTERVIEWED EVERYONE WHO COULD TALK THE PRODUCTION CREW SECURITY GUARDS PAID EXTRAS WINNERS OF OTHER AUCTIONS EACH OTHER EVERYONE BUT THE CAST WHEN IT CAME TO THE ACTORS THESE TWO LONG TIME JOURNALISTS WERE BOTH STARSTRUCK AND DUMBSTRUCK THE EPISODE APPROPRIATELY REVOLVED AROUND A CHARITY AUCTION AND THE HOWARD STERN STYLE SHOCK JOCK WHO PAYS TEN THOUSAND DOLLARS TO SPEND THE DAY AND HAVE DINNER WITH MURPHY BROWN MS. LEACH AND I WERE CAST AS RESTAURANT PATRONS IN THE DINNER SCENEALSO APPROPRIATE BECAUSE JOURNALISTS VALUE FREE MEALS ALMOST AS MUCH AS THEIR BYLINES OUR PARTS WERE SO SMALL THAT NONE OF US RESTAURANT PATRONS EVEN THE PAID PROFESSIONALS WERE CALLED EXTRAS WE WERE BACKGROUND OR ATMOSPHERE SUBJECT TO SUCH INSPIRATIONAL DIRECTIONS AS O. K. BACKGROUND MOVE THE FILMING OF OUR SCENE WENT WITHOUT A HITCH EXCEPT FOR THOSE FEW PANICKY MINUTES WHEN I COULDN'T DISLODGE MY FORK FROM A POTATO CROQUETTE WHICH HAD TURNED INTO LIBRARY PASTE UNDER THE STUDIO LIGHTS BUT NO ONE YELLED CUT AND THE TERROR IN MY EYES IS BARELY NOTICEABLE IN THE FINISHED PRODUCT AS A MATTER OF FACT UNLESS YOU WERE REALLY WATCHING FOR US LAST WEEK NEITHER MS. LEACH NOR I WAS PARTICULARLY NOTICEABLE IN THE FINISHED PRODUCT I KNOW LOTS OF PEOPLE WHO WATCHED THE ENTIRE EPISODE AND NEVER RECOGNIZED MY FRIZZY HAIR STICKING OUT BEYOND CANDICE BERGEN'S FOREHEAD THAT'S THE WAY IT SHOULD HAVE BEEN AFTER ALL I'M A PROFESSIONAL I KNOW WHAT BACKGROUND MEANS MS. HARLAN IS A REPORTER IN THE JOURNAL'S WASHINGTON BUREAU PROCTER AND GAMBLE COMPANY AND SYNTEX CORPORATION WON FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET A NONPRESCRIPTION PAIN RELIEVER BASED ON THE PRESCRIPTION DRUGS NAPROSYN AND ANAPROX THIS MARKS ONE OF THE FEW TIMES THE F. D. A. HAS OVERRULED AN ADVISORY COMMITTEE IN JUNE TWO F. D. A. ADVISORY COMMITTEES MEETING JOINTLY RECOMMENDED AGAINST APPROVING THE MARKETING OF A NONPRESCRIPTION FORM OF THE DRUGS IN ISSUING ITS APPROVAL YESTERDAY THE F. D. A. SAID IT ADDRESSED THE ADVISORY COMMITTEES' CONCERNS BY ASKING P. AND G. AND SYNTEX TO LOWER DAILY DOSAGE LEVELS INCREASE THE RECOMMENDED TIME BETWEEN PILLS AND INCLUDE LABEL WARNINGS FOR CHILDREN AND ELDERLY USERS THE NEW PAIN RELIEVER CALLED ALEVE WILL CHALLENGE ESTABLISHED ANALGESIC BRANDS SUCH AS JOHNSON AND JOHNSON'S TYLENOL AMERICAN HOME PRODUCTS CORPORATION'S ADVIL AND UPJOHN COMPANY'S MOTRIN I. B. TYLENOL CONTAINS ACETAMINOPHEN AND ADVIL AND MOTRIN CONTAIN IBUPROFEN ALEVE WILL BE THE FIRST NONPRESCRIPTION PAIN RELIEVER CONTAINING A NEW ANALGESIC INGREDIENT TO ENTER THE APPROXIMATELY TWO POINT THREE BILLION DOLLAR MARKET SINCE THE F. D. A. APPROVED IBUPROFEN IN NINETEEN EIGHTY FOUR IT WILL BE AVAILABLE IN THE SPRING P. AND G. WHICH IS BASED IN CINCINNATI AND SYNTEX OF PALO ALTO CALIFORNIA FORMED A FIFTY TO FIFTY JOINT VENTURE IN NINETEEN EIGHTY EIGHT TO MAKE AND MARKET THE PRODUCT ALEVE WILL CONTAIN TWO HUNDRED MILLIGRAMS OF NAPROXEN AND TWENTY MILLIGRAMS OF SODIUM NAPROXEN IS THE MAIN INGREDIENT IN SYNTEX'S NAPROSYN THE NATION'S TOP SELLING PRESCRIPTION NONSTEROIDAL ANTI INFLAMMATORY PAIN RELIEVER WHICH IS USED PRIMARILY TO TREAT ARTHRITIS SYMPTOMS ANAPROX ANOTHER SYNTEX PRESCRIPTION PAIN RELIEVER CONTAINS NAPROXEN SODIUM ANALYSTS SAID F. D. A. APPROVAL GIVES SYNTEX A NEEDED BOOST AT A TIME WHEN SALES OF ITS PRESCRIPTION DRUGS ARE SLUGGISH AND ITS STOCK HAS TAKEN A BEATING HOWEVER JAMES P. KEENEY AN ANALYST WITH MABON SECURITIES CORPORATION SAID THE PRODUCT WON'T BOOST SYNTEX'S EARNINGS UNTIL FISCAL NINETEEN NINETY SIX AT THE EARLIEST APPROVAL IS ALSO A BOOST TO P. AND G. WHICH HAS BEEN TRYING TO ENTER THE ANALGESICS MARKET FOR YEARS TO SUPPLEMENT ITS LINEUP OF OVER THE COUNTER PRODUCTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING P. AND G. STOCK FELL THIRTY SEVEN POINT FIVE CENTS TO FIFTY EIGHT DOLLARS AND FIFTY CENTS AND SYNTEX ROSE THIRTY SEVEN POINT FIVE CENTS TO CLOSE AT SIXTEEN POINT THREE SEVEN FIVE DOLLARS ALEVE'S LABELS WILL RECOMMEND THE DRUG FOR THE TEMPORARY RELIEF IN ADULTS AND CHILDREN AGE TWELVE AND OVER OF PAIN RELATED TO THE COMMON COLD HEADACHES TOOTHACHES BACKACHES MUSCLE ACHES MINOR ARTHRITIS AND MENSTRUAL CRAMPS AND FOR FEVER REDUCTION THIS BROAD POSITIONING WILL HELP IT GAIN USERS ALTHOUGH THE ANALGESIC MARKET IS VERY CROWDED SAID MR. KEENEY THE ANALYST QUOTE I DON'T THINK IT WILL BE A RUNAWAY SUCCESS BUT THEY MIGHT GET A RESPECTABLE TEN PERCENT TO TWENTY PERCENT MARKET SHARE QUOTE EDWIN L. ARTZT CHAIRMAN OF P. AND G. SAID THE OVER THE COUNTER OPPORTUNITY FOR THIS DRUG IS SIGNIFICANT BECAUSE NAPROSYN'S TOTAL ANNUAL SALES ARE FOUR TIMES THE TOTAL SALES OF IBUPROFEN BEFORE IT WAS APPROVED AS A NONPRESCRIPTION DRUG MR. ARTZT SAID INITIAL ADVERTISEMENTS WILL APPEAL TO THREE GROUPS SEEKING TEMPORARY PAIN RELIEF THOSE WHO SUFFER FROM HEADACHES PEOPLE WITH MUSCLE ACHES AND PAINS FROM SPORTS AND STRENUOUS LABOR AND THOSE FEELING MINOR ARTHRITIS PAIN THIS BRAND WILL BE COMPETING REALLY FRONTALLY WITH THE MAJOR BRANDS IN THE ANALGESIC MARKET ADVIL TYLENOL AND ASPIRIN MR. ARTZT SAID TWO SOUTHEASTERN BANKS BARNETT BANKS INCORPORATED AND SUNTRUST BANKS INCORPORATED REPORTED STRONG GAINS IN FOURTH QUARTER EARNINGS BOTH INSTITUTIONS ATTRIBUTED THE INCREASES TO IMPROVEMENTS IN OPERATING EFFICIENCY AND LOAN QUALITY SUNTRUST BASED IN ATLANTA SAID STRONG GROWTH IN FEE INCOME ALSO CONTRIBUTED TO THE EARNINGS GAIN IMPROVEMENTS AT BOTH BANKS WERE OFFSET SOMEWHAT BY THE CONTINUED TIGHTENING OF NET INTEREST MARGINS FOR THE FOURTH QUARTER BARNETT BASED IN JACKSONVILLE FLORIDA REPORTED THAT EARNINGS JUMPED TO ONE HUNDRED THIRTEEN POINT THREE MILLION DOLLARS OR ONE DOLLAR AND ELEVEN CENTS A SHARE FROM SIX POINT TWO MILLION DOLLARS OR TWO CENTS A SHARE A YEAR EARLIER THE NINETEEN NINETY TWO FIGURES INCLUDE A SIXTY SEVEN POINT FOUR MILLION DOLLAR RESTRUCTURING CHARGE RELATED TO AN ACQUISITION FOR THE YEAR BARNETT REPORTED RECORD EARNINGS OF FOUR HUNDRED TWENTY ONE MILLION DOLLARS OR FOUR DOLLARS AND TEN CENTS A SHARE THAT COMPARES WITH NINETEEN NINETY TWO NET INCOME OF TWO HUNDRED SEVEN POINT SEVEN MILLION DOLLARS OR ONE DOLLAR AND NINETY SEVEN CENTS A SHARE INCLUDING THE RESTRUCTURING CHARGE BOOSTING THE BANK'S PERFORMANCE IN NINETEEN NINETY THREE WAS ITS BIG REDUCTION IN CREDIT COSTS NONPERFORMING ASSETS FELL FORTY SIX PERCENT TO FOUR HUNDRED FIFTY EIGHT POINT THREE MILLION DOLLARS FROM EIGHT HUNDRED FORTY THREE POINT THREE MILLION DOLLARS A YEAR EARLIER SUNTRUST IN THE FOURTH QUARTER REPORTED THAT NET INCOME ROSE THIRTY THREE PERCENT TO ONE HUNDRED NINETEEN POINT TWO MILLION DOLLARS OR NINETY SEVEN CENTS A SHARE FROM A RESTATED EIGHTY NINE POINT FIVE MILLION DOLLARS OR SEVENTY CENTS A SHARE SUNTRUST'S NET INCOME FOR NINETEEN NINETY THREE ROSE SEVENTEEN PERCENT TO FOUR HUNDRED SEVENTY THREE POINT SEVEN MILLION DOLLARS OR THREE DOLLARS AND SEVENTY SEVEN CENTS A SHARE FROM FOUR HUNDRED FOUR POINT FOUR MILLION DOLLARS OR THREE DOLLARS AND THIRTEEN CENTS A SHARE A YEAR EARLIER THE INCREASE WAS FUELED BY GROWTH IN BOTH FEE INCOME AND LOANS THE BANK'S NINETEEN NINETY THREE TRUST INCOME FOR INSTANCE ROSE NINE POINT THREE PERCENT TO TWO HUNDRED FORTY SEVEN MILLION DOLLARS FROM TWO HUNDRED TWENTY SIX MILLION DOLLARS IN NINETEEN NINETY TWO LOANS INCREASED SEVEN POINT SEVEN PERCENT TO TWENTY FIVE POINT THREE BILLION DOLLARS FROM TWENTY THREE POINT FIVE BILLION DOLLARS IN NINETEEN NINETY TWO MOUNTING PRESSURE THROUGHOUT THE INDUSTRY ON NET INTEREST MARGINS THE DIFFERENCE BETWEEN WHAT A BANK EARNS ON LOANS AND INVESTMENTS AND WHAT IT PAYS FOR DEPOSITS WAS EVIDENT AT BOTH BANKS BARNETT SAW ITS YIELD IN THE FOURTH QUARTER DECLINE TO FOUR POINT NINE EIGHT PERCENT FROM FIVE POINT OH NINE PERCENT IN THE THIRD QUARTER OF NINETEEN NINETY THREE AT SUNTRUST THE NET INTEREST MARGIN DROPPED TO FOUR POINT SIX OH PERCENT IN THE FOURTH QUARTER FROM FOUR POINT SEVEN SIX PERCENT IN THE PRECEDING PERIOD DURING NINETEEN NINETY THREE BARNETT'S MARGIN DECLINED TO FIVE POINT OH SEVEN PERCENT FROM FIVE POINT ONE ONE PERCENT IN NINETEEN NINETY TWO WHILE SUNTRUST'S MARGIN DROPPED TO FOUR POINT EIGHT OH PERCENT FROM FIVE POINT ONE OH PERCENT THE YEAR EARLIER SENATOR JOHN BREAUX'S CAMPAIGN COMMITTEE DOES MORE THAN MAKE SURE THE LOUISIANA DEMOCRAT GETS RE ELECTED IT ALSO MAKES SURE HE'S WELL FED LAST YEAR ACCORDING TO FEDERAL ELECTION COMMISSION RECORDS THE CAMPAIGN PICKED UP THE TAB AT A NUMBER OF WASHINGTON'S MORE POSH RESTAURANTS SEVENTY EIGHT DOLLARS AT LE MISTRAL ONE HUNDRED DOLLARS AT BICE ONE HUNDRED TEN DOLLARS AT RED SAGE AND ONE HUNDRED SIXTY SIX DOLLARS AT LA BRASSERIE THE CAMPAIGN ALSO SPENT NINE HUNDRED SIXTY FOUR DOLLARS AT THE SENATE GIFT SHOP ON BIRTHDAY AND WEDDING PRESENTS ON TOP OF THAT THE CAMPAIGN PAID FOR ONE THOUSAND FIFTY DOLLARS WORTH OF NEW ORLEANS SAINTS FOOTBALL TICKETS IN THEORY IT HAS BEEN ILLEGAL SINCE NINETEEN SEVENTY NINE FOR CANDIDATES AND MEMBERS OF CONGRESS TO USE CAMPAIGN FUNDS TO COVER PERSONAL EXPENSES BUT IN PRACTICE THE F. E. C. AND HOUSE AND SENATE ETHICS COMMITTEES HAVE GIVEN LAWMAKERS SUCH WIDE LATITUDE IN DEFINING CAMPAIGN RELATED EXPENSES THAT MOST ANY DISBURSEMENT HAS BEEN DEEMED TO BE LEGITIMATE MEMBERS OF CONGRESS HAVE TAPPED THEIR CAMPAIGN FUNDS TO BUY FANCY CARS EXTEND BUSINESS TRIPS INTO FAMILY VACATIONS AND PURCHASE EVENING GOWNS FOR THEIR WIVES NOW THE F. E. C. IS FINALLY LOOKING INTO CLOSING THE LID ON SUCH USES OF CAMPAIGN WAR CHESTS IT IS SCHEDULED TO HOLD A HEARING TODAY ON PROPOSED REGULATIONS THAT IN GENERAL WOULD BAR THE USE OF CAMPAIGN FUNDS FOR ANY EXPENSE THAT WOULD EXIST IRRESPECTIVE OF A CANDIDATE'S CAMPAIGN OR OFFICIAL BUSINESS AS AN OFFICEHOLDER MANY POLITICIANS ARE NOT HAPPY QUOTE THERE SEEMS TO HAVE BEEN A MILD OUTBREAK OF PANIC QUOTE ON CAPITOL HILL SAYS ELIZABETH HEDLUND DIRECTOR OF F. E. C. WATCH A PROJECT OF THE NONPARTISAN CENTER FOR RESPONSIVE POLITICS F. E. C. OFFICIALS SAY THEY HAVE GOTTEN PHONE CALLS FROM SOME CONCERNED LAWMAKERS OTHERS HAVE WRITTEN LETTERS A POLITICIAN MUST MEET AND MINGLE WITH PEOPLE FLORIDA DEMOCRATIC REPRESENTATIVE EARL HUTTO ASSERTS IN A LETTER TO THE F. E. C. THERE IS NO BETTER WAY THAN TO ATTEND A FRIDAY NIGHT HIGH SCHOOL FOOTBALL GAME OTHERS WHO HAVE WRITTEN THE F. E. C. TO QUESTION CERTAIN ASPECTS OF THE PROPOSED RULES INCLUDE DEMOCRATIC REPRESENTATIVE JOLENE UNSOELD OF WASHINGTON AND CALIFORNIA REPUBLICAN REPRESENTATIVE BILL THOMAS THE RANKING MINORITY MEMBER OF THE HOUSE ADMINISTRATION COMMITTEE TREVOR POTTER WHO HAS BEEN AN F. E. C. COMMISSIONER SINCE NINETEEN NINETY TWO AND TOOK OVER AS CHAIRMAN EARLIER THIS MONTH ISN'T SURPRISED AT THE PROTESTS I THINK ANY CANDIDATE WOULD LIKE TO KEEP A LOT OF DISCRETION IN HOW CAMPAIGN MONEY CAN BE SPENT SAYS MR. POTTER WHO GETS CREDIT FROM FECWATCHERS SUCH AS MS. HEDLUND FOR TRYING TO SHAKE THINGS UP AT AN AGENCY TRADITIONALLY VIEWED AS A TOOTHLESS TIGER UP TILL NOW THAT DISCRETION HAS BEEN VIRTUALLY UNCHALLENGED IN THE FIFTEEN YEARS THAT THE PERSONAL USE PROHIBITION HAS BEEN ON THE BOOKS THE F. E. C. HAS NEVER PUNISHED ANYONE FOR VIOLATING IT AND THE BROAD POWER OVER HOW CAMPAIGN MONEY IS USED HAS REMAINED ONE OF LAWMAKERS' MOST PRIZED PERKS IN HANDBOOK OF CAMPAIGN SPENDING A STUDY OF HOW MONEY WAS USED IN THE NINETEEN NINETY CONGRESSIONAL RACES JOURNALISTS SARA FRITZ AND DWIGHT MORRIS FOUND THAT REPUBLICAN SENATOR TED STEVENS OF ALASKA SPENT MORE THAN SEVENTY THOUSAND DOLLARS IN CAMPAIGN FUNDS ON AUTOMOBILES AND MAINTENANCE FOR TWO CARS KEPT IN WASHINGTON IN ALL THEY FOUND NINETY FOUR MEMBERS OF CONGRESS EITHER BOUGHT OR LEASED CARS WITH CAMPAIGN DOLLARS A NINETEEN NINETY TWO REPORT BY THE CITIZENS' LOBBY COMMON CAUSE SHOWED THAT BETWEEN NINETEEN SEVENTY EIGHT AND NINETEEN NINETY FORMER REPUBLICAN REPRESENTATIVE ROBERT DAVIS HAD HIS CAMPAIGN PAY NEARLY TWO HUNDRED TWENTY FIVE THOUSAND DOLLARS BETWEEN NINETEEN SEVENTY EIGHT AND NINETEEN NINETY FOR TRAVEL LODGING MEALS VIRTUALLY EVERYTHING HE DID IN MICHIGAN HIS HOME STATE THE SAME REPORT FOUND THAT DEMOCRATIC SENATOR DANIEL INOUYE OF HAWAII CONSUMED EIGHT HUNDRED NINETY TWO DOLLARS WORTH OF QUOTE CAMPAIGN MEALS QUOTE DURING VISITS TO INDONESIA AND TAIWAN WHEN CONGRESS PASSED THE PERSONAL USE LAW IT PUT IN A GRANDFATHER CLAUSE THAT ALLOWED SITTING MEMBERS OF CONGRESS TO CONVERT CAMPAIGN FUNDS TO PERSONAL USE UPON RETIREMENT MANY DID IN NINETEEN EIGHTY NINE THE GRANDFATHER CLAUSE WAS REMOVED BUT THE REVISION WAS WRITTEN SO THAT NO LAWMAKER WAS ACTUALLY AFFECTED UNTIL LAST YEAR THE PROPOSED F. E. C. RULES SPELL OUT A NUMBER OF AREAS THAT WOULD BE AUTOMATICALLY CONSIDERED PERSONAL USE OF CAMPAIGN FUNDS MORTGAGE RENT AND UTILITY PAYMENTS FOOD CHILD SUPPORT HEALTH CARE INSURANCE CLOTHING AND TUITION THE RULES WOULD ALSO BAN USING CAMPAIGN MONEY FOR COUNTRY CLUB DUES AS WELL AS GREENS AND TENNIS COURT FEES UNLESS THESE COSTS WERE PART OF A FUND RAISING EVENT IN ADDITION THE PROPOSED REGULATIONS WOULD PREVENT CANDIDATES FROM PAYING SALARIES TO THEMSELVES OUT OF CAMPAIGN FUNDS AND IN WHAT WOULD BE A REVERSAL OF PREVIOUS POLICY THE RULES RAISE THE POSSIBILITY OF PREVENTING CANDIDATES FROM HAVING THEIR CAMPAIGNS RENT PORTIONS OF THEIR HOMES OR OFFICES AMONG THOSE URGING THE F. E. C. TO GO SLOW ARE TWO LEADING CAMPAIGN ATTORNEYS REPUBLICAN JAN BARAN AND DEMOCRAT ROBERT BAUER ALTHOUGH THEY HAVE REPRESENTED CAMPAIGN COMMITTEES OF THEIR RESPECTIVE PARTIES MR. BARAN SAYS HE AND MR. BAUER ARE NOT REPRESENTING ANYONE IN PARTICULAR IN THIS INSTANCE IN A JOINT LETTER TO THE COMMISSION THEY ARGUE THAT PROHIBITING EXPENDITURES THAT WOULD HAVE BEEN MADE IRRESPECTIVE OF A PERSON'S CANDIDACY IS AT ONCE TOO BROAD AND TOO UNCERTAIN THEY ALSO SAY THAT ANY NEW F. E. C. REGULATIONS SHOULD COMPORT WITH HOUSE AND SENATE ETHICS RULES WHICH CRITICS FEEL ARE LOOSER THAN WHAT THE F. E. C. HAS PROPOSED THEIR BOTTOM LINE THE F. E. C. SHOULD NOT IMPINGE ON THE APPROPRIATE DISCRETION OF CANDIDATES TO DETERMINE WHICH EXPENDITURES ARE CAMPAIGN RELATED BUT CRITICS SAY THIS IS PRECISELY THE NOSTRUM THAT LED TO SO MUCH ABUSE IN THE FIRST PLACE IF WE'RE GOING TO REFORM THIS SYSTEM WE HAVE TO PUT AN END TO MEMBERS OF CONGRESS LIVING OFF OF THEIR CAMPAIGN MONEY SAYS FRED WERTHEIMER PRESIDENT OF COMMON CAUSE WHAT YOU END UP HERE WITH IS SPECIAL INTEREST GROUPS NOT ONLY FINANCING THE CAMPAIGNS OF MEMBERS OF CONGRESS BUT THEIR PERSONAL LIFESTYLES AS WELL NOR IS IT JUST A QUESTION OF LIFESTYLES ALSO ON THE F. E. C.'S PROPOSED LIST OF ITEMS TO BE COUNTED AS QUOTE PERSONAL USE QUOTE ARE FUNERAL CREMATION AND BURIAL EXPENSES FOR DECEASED LAWMAKERS THE F. E. C. SAYS IT QUOTE IS AWARE THAT CAMPAIGN FUNDS HAVE BEEN USED QUOTE TO COVER SUCH COSTS IN A DECEMBER TWENTY SEVENTH MARKETPLACE REPORT ABOUT THE DECEMBER SIXTEENTH QUOTE PRIME TIME LIVE QUOTE ACCOUNT OF A POSSIBLE CONSPIRACY INVOLVED IN THE MURDER OF MARTIN LUTHER KING YOU SAID THAT THE STORY HAD BEEN REJECTED BY OTHER ORGANIZATIONS BECAUSE IT WAS TOO DIFFICULT TO PROVE AND THAT IT QUOTE RENEWED CONCERNS WITHIN THE INDUSTRY ABOUT WHETHER UNPROVEN STORIES ARE BEING AIRED QUOTE BECAUSE OF COMPETITION AMONG T. V. NEWSMAGAZINES THIS STORY APPEARED OF COURSE IN THE SAME EDITION IN WHICH THE JOURNAL REPORTED THE UNPROVEN STORIES ABOUT NORTH KOREA'S POSSESSION OF A NUCLEAR BOMB THE DEFENSE DEPARTMENT SAYS IT ISN'T SO AND A CHILD'S ACCUSATION OF SEXUAL MOLESTATION BY MICHAEL JACKSON MR. JACKSON SAYS IT ISN'T SO I WOULD HESITATE TO SAY THAT YOU REPEATED THOSE REPORTS BECAUSE OF INCREASED COMPETITION FOR DECLINING READERSHIP BUT I WOULD LIKE TO MAKE A POINT ABOUT THE INDUSTRY CONCERN THERE HAS BEEN TALK ABOUT A CONSPIRACY TO MURDER MR. KING FOR SOME TIME A LOT OF ORGANIZATIONS INCLUDING THOSE YOU QUOTE TRIED TO FIND PEOPLE WHO WOULD TALK ABOUT IT MOST FAILED WE SUCCEEDED OUR REPORTING WAS CAREFUL TO POINT OUT THE PROBLEMS IN THE STATEMENTS OF THOSE INVOLVED BUT THOSE INVOLVED WERE GIVING A FIRSTHAND ACCOUNT OF THEIR OWN ACTS THEY DID SO AT SOME RISK TO THEMSELVES FINANCIALLY AND LEGALLY PROOF OF THE STATEMENTS PROBABLY WILL HAVE TO COME THROUGH THE COURTS AS IN THE MICHAEL JACKSON CASE BUT A FIRSTHAND ACCOUNT BY A PERSON WILLING TO GO ON THE RECORD AND GIVE PLAUSIBLE DETAILS OF A MAJOR CRIME IS A NEWS STORY THAT IT WASN'T LEAKED ANONYMOUSLY IN WASHINGTON FROM AN OFFICIAL SOURCE WHO TALKED TO ALL THE PAPERS DOESN'T MAKE IT LESS SO MAYBE WE REPORTED IT BECAUSE EVEN THOSE WITH AGENDAS LIKE THE C. I. A. MAY BE TELLING THE TRUTH AND IT'S WORTH LOOKING INTO WESTINGHOUSE ELECTRIC ANNOUNCED FOURTH QUARTER AFTERTAX CHARGES TOTALING ABOUT NINE HUNDRED SIX MILLION DOLLARS TO CUT ITS WORK FORCE SELL BUSINESSES AND SHORE UP ITS UNDERFUNDED PENSION PLAN THE RESTRUCTURING UNDER ITS NEW CHAIRMAN MICHAEL JORDAN IS THE COMPANY'S LATEST ATTEMPT TO CLEAN UP PROBLEMS STEMMING FROM A DISASTROUS FORAY INTO FINANCIAL SERVICES AS WELL AS SLUGGISH GROWTH IN ITS POWER GENERATION AND DEFENSE ELECTRONICS UNITS THE WHITE HOUSE PROPOSED EXEMPTING TELECOMMUNICATIONS COMPANIES FROM SOME STATE AND LOCAL REGULATIONS IF THEY OPERATE IN COMPETITIVE MARKETS AND SET UP VIDEO AND INFORMATION NETWORKS OPEN TO ALL PROGRAMMING TOYS QUOTE R. QUOTE US PLANS TO SPEND AS MUCH AS ONE BILLION DOLLARS TO REPURCHASE ITS SHARES OVER SEVERAL YEARS WHILE MOUNTING AN AGGRESSIVE EXPANSION DRIVE OPENING ONE HUNDRED FIFTEEN TOY STORES IN NINETEEN NINETY FOUR SEVENTY OF THOSE STORES WILL BE IN INTERNATIONAL MARKETS THAT ARE TARGETED FOR FASTEST GROWTH SUSTAINED ECONOMIC GROWTH WILL HELP CREATE TWO HUNDRED THOUSAND MANUFACTURING JOBS IN NINETEEN NINETY FOUR THE NATIONAL ASSOCIATION OF MANUFACTURERS FORECAST THE SECTOR HASN'T ADDED NEW WORKERS SINCE NINETEEN EIGHTY EIGHT PEPSICO AGREED TO SELL ITS U. S. DISTRIBUTION RIGHTS FOR STOLICHNAYA VODKA TO GRAND METROPOLITAN IN A SURPRISING MOVE LIKELY TO STEP UP COMPETITION THE MOVE COMES FOUR MONTHS AFTER SEAGRAM WON THE DISTRIBUTION RIGHTS FOR ABSOLUT AWAY FROM GRAND MET THE U. A. W. STRUCK G. M.'S TRUCK PLANT IN SHREVEPORT LOUISIANA IN A CLASH OVER G. M.'S CAMPAIGN TO BOOST PRODUCTIVITY ANALYSTS SAID THE STRIKE COULD COST G. M. TWO MILLION DOLLARS TO THREE MILLION DOLLARS A DAY IN ADDITION THE CAR MAKER SAID IT WILL SHUT A PARTS PLANT IN CONNECTICUT AND PUT AN OHIO FACTORY ON THREE YEAR PROBATION MERRY GO ROUND SAID IT FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER ELEVEN OF THE U. S. BANKRUPTCY CODE NATIONAL MEDICAL TOOK A TWO HUNDRED EIGHTY SEVEN POINT FOUR MILLION DOLLAR WRITE DOWN IN THE QUARTER ENDED NOVEMBER THIRTIETH RELATED TO EXPECTED PLANS TO DISPOSE OF ITS PSYCHIATRIC HOSPITALS PROCTER AND GAMBLE AND SYNTEX WON F. D. A. APPROVAL OF AN OVER THE COUNTER PAIN RELIEVER BASED ON THE PRESCRIPTION DRUGS NAPROSYN AND ANAPROX THE DRUG ALEVE WILL CHALLENGE SUCH BRANDS AS J. AND J'S TYLENOL AMERICAN HOME'S ADVIL AND UPJOHN'S MOTRIN A FEDERAL JUDGE REFUSED TO EXTEND THE DEADLINE FOR LIMITED PARTNERSHIP INVESTORS TO OPT OUT OF A ONE HUNDRED TWENTY MILLION DOLLAR SETTLEMENT BY PRUDENTIAL SECURITIES KODAK'S NEW C. E. O. GEORGE FISHER SAID ITS COPIER DIVISION ISN'T FOR SALE ENDING OVER A YEAR OF SPECULATION CHEMICAL'S DARLA MOORE A MANAGING DIRECTOR WHO TURNED LENDING TO COMPANIES IN BANKRUPTCY PROTECTION INTO A BOOMING BUSINESS RESIGNED NATIONAL SEMICONDUCTOR PLANS TO UNVEIL A DATA SECURITY TECHNOLOGY BASED ON A MICROCHIP THAT CAN BE PUT IN POCKET SIZED CARDS OR OTHER HARDWARE TO PROTECT COMPUTER MESSAGES THE CHICAGO BOARD OF TRADE APPEARS POISED TO LEAVE THE GLOBEX AFTER HOURS ELECTRONIC FUTURES TRADING SYSTEM AS A RIFT WIDENS WITH ITS PARTNERS THE CHICAGO MERC AND REUTERS TWO SOUTHEASTERN BANKS BARNETT AND SUNTRUST REPORTED STRONG GAINS IN FOURTH QUARTER EARNINGS ATTRIBUTING THE INCREASES TO IMPROVED OPERATING EFFICIENCY AND BETTER LOAN QUALITY THE MUNICIPAL SECURITIES RULEMAKING BOARD PLANS TO PROVIDE SURVEILLANCE REPORTS ON THE MUNI BOND MARKET TO THE S. E. C. AND OTHER REGULATORS THE PLAN WHICH WOULD GIVE REGULATORS A NEW TOOL FOR ENFORCING SECURITIES LAW IS THE LATEST SIGN THAT THE MARKET WILL BE SUBJECT TO HEIGHTENED OVERSIGHT MELLON BANK IS OFFERING A NEW CREDIT CARD THAT PROMISES TO REFUND ALL INTEREST PAID OVER TWENTY YEARS THE LATEST LURE IN A BATTLE TO WIN CARD USERS BANCO ESPANOL DE CREDITO'S FORMER CHAIRMAN PLANS TO APPEAL THE CENTRAL BANK'S DE FACTO TAKEOVER OF THE BANK BUT J. P. MORGAN BANESTO'S INVESTMENT ADVISER SAID IT WON'T JOIN HIM BONDS LEHMAN BROTHERS TREASURY INDEX FIVE THOUSAND SIX HUNDRED NINE POINT THREE SEVEN UP SEVEN POINT EIGHT FOUR COMMODITIES OIL FOURTEEN DOLLARS AND EIGHTY FIVE CENTS A BARREL UP EIGHTEEN CENTS DOW JONES FUTURES INDEX ONE HUNDRED FORTY POINT FIVE SIX OFF ZERO POINT ZERO EIGHT SPOT INDEX ONE HUNDRED TWENTY EIGHT POINT TWO EIGHT UP ZERO POINT EIGHT FOUR DOLLAR ONE HUNDRED TWELVE POINT FOUR OH YEN UP ZERO POINT ONE FIVE ONE POINT SEVEN FOUR ONE SIX MARKS UP ZERO POINT ZERO ZERO SEVEN GARY C. DUNTON THIRTY EIGHT YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT FIELD OPERATIONS AT THE U. S. F. AND G. INSURANCE UNIT OF THIS INSURANCE HOLDING COMPANY MR. DUNTON SUCCEEDS WARREN E. COUPLAND FORTY EIGHT WHO LEFT THE COMPANY FOR OTHER BUSINESS OPPORTUNITIES THE COMPANY SAID WHILE U. S. AIRLINES STILL FACE PROBLEMS OVER THE NEXT SEVERAL YEARS CREDIT RATINGS FOR THE INDUSTRY OVERALL HAVE PROBABLY BOTTOMED OUT ACCORDING TO A NEW REPORT BY MOODY'S INVESTORS SERVICE INCORPORATED MOODY'S SAID THAT DESPITE IMPROVED PROFITS IT WILL TAKE MUCH OF THE REST OF THE DECADE FOR AIRLINE RATINGS TO REGAIN THE PREVIOUS CYCLICAL PEAK OF B. A. A. TWO IN THE LATE NINETEEN EIGHTIES THE CURRENT INDUSTRY AVERAGE IS B. A. TWO THE INDUSTRY'S CREDIT PROFILE WILL CONTINUE TO BE HURT BY DECLINING GROWTH IN DOMESTIC TRAFFIC AND WEAKNESS IN OVERSEAS ECONOMIES MOODY'S SAID OTHER PROBLEMS ACCORDING TO THE RATING AGENCY INCLUDE LABOR STRIFE AND QUOTE SHORT HAUL QUOTE FLIGHTS WHERE MAJOR AIRLINES ARE STRUGGLING AGAINST LOW COST CARRIERS SUCH AS SOUTHWEST AIRLINES BUT MOODY'S ALSO SEES POSITIVE SIGNS IN INDUSTRY COST CUTTING EFFORTS CUTBACKS IN AIRCRAFT DELIVERIES AND FIRMER PRICES CHARLES H. P. DUELL FIFTY FIVE YEARS OLD WAS NAMED A DIRECTOR OF THIS DEFENSE RELATED TECHNICAL SERVICES CONCERN BRINGING THE BOARD TO EIGHT MEMBERS MR. DUELL IS PRESIDENT OF BOTH MIDDLETON PLACE FOUNDATION A HISTORICAL LANDMARK AND MIDDLETON INN COMPANY BOTH LOCATED IN CHARLESTON N. C. JACK L. BOWMAN SIXTY ONE YEARS OLD WAS ELECTED A DIRECTOR OF THIS PHARMACEUTICALS CONCERN THE ELECTION OF MR. BOWMAN A RETIRED JOHNSON AND JOHNSON GROUP CHAIRMAN INCREASES NEORX'S BOARD TO TEN MEMBERS EASTMAN KODAK COMPANY'S NEW CHIEF EXECUTIVE OFFICER GEORGE FISHER ENDING MORE THAN A YEAR OF SPECULATION SAID THE COMPANY'S COPIER DIVISION QUOTE IS NOT FOR SALE QUOTE THE BUSINESS A POOR PERFORMER FOR YEARS IS EXPECTED TO REPORT PROFIT FOR NINETEEN NINETY THREE THE COMPANY SAID THE UNIT COMPRISES ABOUT ONE THIRD OF KODAK'S INFORMATION SYSTEMS DIVISION WHICH IN NINETEEN NINETY TWO POSTED AN OPERATING LOSS OF ONE HUNDRED FIFTY ONE MILLION DOLLARS WHICH INCLUDES A ONE HUNDRED TWENTY THREE MILLION DOLLAR DEDUCTION FOR RESTRUCTURING COSTS MR. FISHER'S INTERNAL ENDORSEMENT OF THE BUSINESS WHICH HE PERSONALLY RELAYED TO THE COPIER SALES STAFF LAST WEEK SURPRISED ANALYSTS SINCE HE TOOK OVER ON DECEMBER FIRST THE FORMER MOTOROLA INCORPORATED EXECUTIVE HAS BEEN SILENT ABOUT HIS PLANS FOR KODAK'S VARIOUS BUSINESSES THERE'S BEEN AN IMPRESSION THAT COPIERS HAVE IMPROVED SAID ANALYST JACK KELLY WITH GOLDMAN SACHS BUT COMPETITOR XEROX CORPORATION CONTINUES TO GIVE KODAK TROUBLE HE ADDED I'M JUST SURPRISED FISHER MADE A STATEMENT SO EARLY IN THE GAME KODAK'S COPIER DIVISION HOPES MR. FISHER'S BACKING WILL HELP BOOST SALES WITH CUSTOMERS SOME OF WHOM HAVE WORRIED ABOUT WHETHER KODAK IN ROCHESTER N. Y. WOULD BE AROUND TO SERVICE EQUIPMENT THE MAJOR IMPACT OF THIS IS CREDIBILITY WITH OUR CUSTOMERS SAID ED GRECO VICE PRESIDENT AND GENERAL MANAGER OF OFFICE IMAGING THE DIVISION CONTROLLING COPY PRODUCTS THIS IS COMMITMENT FROM THE CORPORATION IN MR. GRECO'S OFFICE STILL HANGS A COLOR PICTURE OF KODAK'S OFFICE IMAGING BUILDING WITH A COMPUTERIZED NOT FOR SALE SIGN OUT FRONT SIMILAR SIGNS INTENDED TO SPARK A QUOTE SURVIVAL MODE QUOTE PAPERED THE DIVISION LAST YEAR WHEN THE FIGHT TO SAVE COPIERS HEIGHTENED AFTER FORMER KODAK CHAIRMAN AND C. E. O. KAY WHITMORE SAID THE COMPANY WOULD SELL OR SPIN OFF PARTS OF A MAJOR BUSINESS ALTHOUGH KODAK'S CHEMICAL DIVISION WHICH WAS SPUN OFF JANUARY FIRST WAS THE INTENDED DIVESTITURE SPECULATION CONTINUED THAT THE COPIER DIVISION WAS ON THE BLOCK MR. GRECO SAID THE BUSINESS HAS BEEN HELPED BY COST CUTTING AND INVENTORY REDUCTIONS IN ADDITION KODAK'S ALLIANCE WITH COPIER GIANT CANON INCORPORATED'S CANON COPIERS U. S. A. WHICH BEGAN IN JULY NINETEEN NINETY TWO HAS INCREASINGLY BOOSTED SALES MR. GRECO SAID EDWIN T. BURTON WAS NAMED MANAGING DIRECTOR OF THIS REGIONAL BROKERAGE FIRM'S INVESTMENT BANKING OPERATIONS A NEW POSITION OVERSEEING BOTH ITS PUBLIC FINANCE AND CORPORATE FINANCE OPERATIONS MR. BURTON FIFTY ONE YEARS OLD ON MONDAY IS TO ASSUME MANAGERIAL ROLES NOW HELD BY THE SEPARATE HEADS OF THE TWO OPERATIONS GEORGE WOODALL FIFTY ONE HEAD OF PUBLIC FINANCE AND ALLEN ROGERS FORTY SEVEN HEAD OF CORPORATE FINANCE WILL REMAIN WITH THE FIRM AS SENIOR BANKERS REPORTING TO MR. BURTON WHO HAS BEEN PRESIDENT OF ROTHSCHILD FINANCIAL SERVICES INCORPORATED A FINANCIAL SERVICES SUBSIDIARY OF ROTHSCHILD NORTH AMERICA INCORPORATED RONALD J. RITCHIE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS ELECTRONICS CONCERN RESIGNED THE COMPANY SAID MR. RITCHIE FIFTY THREE YEARS OLD WHO WAS ALSO A BOARD MEMBER WAS UNABLE FOR PERSONAL REASONS TO MOVE PERMANENTLY TO BOSTON HEADQUARTERS OF COMPUTER PRODUCTS' LARGEST BUSINESS POWER CONVERSION MR. RITCHIE WHO JOINED COMPUTER PRODUCTS IN NINETEEN NINETY TWO COULDN'T BE REACHED FOR A COMMENT THE COMPANY SAID IT DOESN'T PLAN TO FILL MR. RITCHIE'S POSITIONS INSTEAD DIRECTORS OF EACH BUSINESS UNIT WILL REPORT TO JOHN N. LEMASTERS CHAIRMAN AND CHIEF EXECUTIVE OFFICER BANISTER INCORPORATED SAID A JOINT VENTURE INCLUDING BANISTER'S FIFTY PERCENT OWNED NICHOLLS RADTKE LIMITED UNIT WON A CONTRACT TO BUILD A COGENERATION PLANT IN WINDSOR ONTARIO FOR THE WEST WINDSOR POWER CONSORTIUM THE VALUE OF THE CONTRACT IS MORE THAN ONE HUNDRED TEN MILLION CANADIAN DOLLARS EIGHTY THREE POINT FIVE MILLION U. S. DOLLARS BANISTER A CONSTRUCTION CONCERN SAID ITS OWN SHARE WILL BE ABOUT ONE QUARTER THE PLANT WILL START UP IN NINETEEN NINETY FIVE AND SUPPLY POWER TO ONTARIO HYDRO ONTARIO'S POWER UTILITY A FEDERAL JUDGE REFUSED TO EXTEND THE DEADLINE FOR ENERGY LIMITED PARTNERSHIP INVESTORS TO DECIDE WHETHER TO OPT OUT OF A ONE HUNDRED TWENTY MILLION DOLLAR SETTLEMENT BY PRUDENTIAL SECURITIES INCORPORATED THE DECISION BY FEDERAL JUDGE MARCEL LIVAUDAIS JUNIOR MEANS THAT ONE HUNDRED THIRTY THOUSAND INVESTORS IN A CLASS ACTION CASE IN NEW ORLEANS WILL HAVE UNTIL SATURDAY TO DECIDE WHETHER TO ACCEPT PRUDENTIAL'S SETTLEMENT OFFER OR TRY TO TAP INTO A THREE HUNDRED THIRTY MILLION DOLLAR RESTITUTION FUND SET UP BY PRUDENTIAL AS PART OF AN OCTOBER SETTLEMENT WITH REGULATORS A FAIRNESS HEARING ON THE NEW ORLEANS SETTLEMENT IS SCHEDULED FOR JANUARY THE INVESTORS HAVE ACCUSED THE PRUDENTIAL INSURANCE COMPANY OF AMERICA UNIT OF MISLEADING THEM ON THE RISKS AND RETURNS OF ABOUT ONE POINT FOUR FIVE BILLION DOLLARS IN THIRTY FIVE ENERGY PARTNERSHIPS MANY OF WHICH HAVE SOURED BUT SEVERAL STATES AND ATTORNEYS HAD URGED JUDGE LIVAUDAIS TO POSTPONE THE OPT OUT DATE AND FAIRNESS HEARING LAST WEEK FOR INSTANCE THE CALIFORNIA CORPORATIONS COMMISSIONER ASKED THE JUDGE TO DELAY THE HEARING FOR NINETY DAYS QUOTE AND ORDER THE PARTIES TO IMPROVE THE DISCLOSURE TO COMPARE THE SETTLEMENT AMOUNT THE IMPACTED INVESTORS MAY EXPECT IN THIS SETTLEMENT WITH THE AMOUNT THEY COULD BE EXPECTED TO RECEIVE QUOTE UNDER THE REGULATORY ACCORD THE STATES TECHNICALLY HAD NO STANDING TO OPPOSE THE SETTLEMENT HOWEVER THAT'S BECAUSE THEY ALREADY HAD SIGNED OFF ON THE ONE HUNDRED TWENTY MILLION DOLLAR SETTLEMENT UNDER WHICH EACH STATE WILL RECEIVE FIVE HUNDRED THOUSAND DOLLARS PEOPLE FAMILIAR WITH THE MATTER SAY THE KEY THING IS THAT THE STATES THEMSELVES HAD SETTLED AND SO WERE NOT OBJECTING TO ANY SUBSTANTIVE ASPECTS OF THE SETTLEMENT SAYS CLINTON KRISLOV AN ATTORNEY IN CHICAGO WHO REPRESENTS CLIENTS WITH CLAIMS AGAINST PRUDENTIAL IF ACCEPTED BY JUDGE LIVAUDAIS THE SETTLEMENT WOULD BRING TO ABOUT ONE POINT TWO SEVEN BILLION DOLLARS OR AN AVERAGE OF EIGHTY SEVEN CENTS ON THE DOLLAR THE AMOUNT THAT INVESTORS WILL END UP GETTING FOR THEIR ORIGINAL ONE POINT FOUR FIVE BILLION DOLLAR INVESTMENT THE INVESTORS ALREADY HAVE RECEIVED DISTRIBUTIONS OF MORE THAN SIX HUNDRED FIFTY MILLION DOLLARS AND WILL GET AN ADDITIONAL FOUR HUNDRED NINETY ONE MILLION DOLLARS FROM THE SALE OF THE PARTNERSHIPS TO PARKER AND PARSLEY PETROLEUM COMPANY A TEXAS OIL AND GAS COMPANY THIS IS THE SECOND SHOT THAT PRUDENTIAL HAS MADE IN SETTLING THE CLASS ACTION CASE LAST FEBRUARY JUDGE LIVAUDAIS SAID HE HAD SERIOUS RESERVATIONS ABOUT THE FAIRNESS OF PRUDENTIAL'S ORIGINAL SETTLEMENT PROPOSAL WHICH INCLUDED ABOUT THIRTY SEVEN MILLION DOLLARS IN CASH PAYMENTS AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM K. P. M. G. PEAT MARWICK SAID IT IS ACQUIRING A SMALL LOS ANGELES CONSULTING FIRM AS PART OF ITS EXPANSION INTO REGULATORY COMPLIANCE SERVICES TERMS WEREN'T DISCLOSED SMITH BANKING CONSULTANTS SPECIALIZES IN HELPING FINANCIAL INSTITUTIONS COMPLY WITH REGULATORY REQUIREMENTS SUCH AS THE COMMUNITY REINVESTMENT ACT BY PERFORMING DETAILED ANALYSES OF LENDING ACTIVITIES AND THROUGH FAIR LENDING REVIEWS K. P. M. G. PEAT MARWICK PROVIDES AUDIT TAX AND CONSULTING SERVICES IN MORE THAN ONE HUNDRED THIRTY ONE COUNTRIES WHO'S NEWS GEORGE J. KRIEGER WAS NAMED EXECUTIVE VICE PRESIDENT FOX SPORTS AT FOX BROADCASTING COMPANY A UNIT OF NEWS CORPORATION'S FOX INCORPORATED ALUSUISSE LONZA HOLDING LIMITED SAID THE LAWSON FAMILY OF LONDON ONTARIO AGREED TO TENDER ITS STAKE IN LAWSON MARDON GROUP LIMITED TO A TAKEOVER BID BY A UNIT OF ALUSUISSE THE FAMILY HOLDS ABOUT TWO MILLION OR SIXTEEN POINT FOUR PERCENT OF THE CLASS B. SHARES OF LAWSON MARDON CRAGNOTTI AND PARTNERS CAPITAL INVESTMENT S. A. OF LUXEMBOURG ALREADY TENDERED ITS FIFTY TWO POINT EIGHT PERCENT VOTING CONTROL OF LAWSON MARDON A TORONTO PACKAGING CONCERN THE BID EXPIRES TOMORROW ALUSUISSE IS A SWISS MANUFACTURING CONCERN THE MUNICIPAL SECURITIES RULEMAKING BOARD SAID IT PLANS TO PROVIDE THE SECURITIES AND EXCHANGE COMMISSION AND OTHER REGULATORS WITH SURVEILLANCE REPORTS ON THE MUNICIPAL BOND MARKET THE M. S. R. B.'S PLAN WHICH WOULD GIVE REGULATORS A NEW TOOL FOR ENFORCING SECURITIES LAW IS THE LATEST SIGN THAT THE MUNICIPAL BOND MARKET WILL BE SUBJECT TO HEIGHTENED OVERSIGHT IN THE PERIOD AHEAD THE M. S. R. B. LAST SPRING ANNOUNCED PLANS FOR A PILOT PROGRAM TO ENHANCE QUOTE TRANSPARENCY QUOTE IN THE MUNICIPAL BOND MARKET BY COLLECTING AND PUBLISHING DATA DAILY ON MARKET VOLUME AND PRICES OF FREQUENTLY TRADED BONDS THE PROGRAM IS DESIGNED TO GIVE INDIVIDUAL INVESTORS AND OTHER MARKET PARTICIPANTS READY ACCESS TO SUCH INFORMATION THE BOARD PROVIDED NEW DETAILS YESTERDAY AND SAID IT HOPES TO HAVE THE PROGRAM OPERATING NEXT JANUARY THE M. S. R. B. IS A SELF REGULATORY BODY SUBJECT TO S. E. C. OVERSIGHT THE COMMISSION HAS BEEN A LEADING ADVOCATE OF IMPROVING TRANSPARENCY IN ALL SECURITIES MARKETS THE BOARD SAID IT WILL USE INTER DEALER TRANSACTION DATA SUBMITTED FOR AUTOMATED COMPARISON TO PRODUCE DAILY PUBLIC REPORTS CONTAINING VOLUME AND PRICING INFORMATION AND TO PROVIDE MORE DETAILED SURVEILLANCE REPORTS FOR THE AGENCIES CHARGED WITH ENFORCING BOARD RULES THE S. E. C. THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AND BANK REGULATORS FOR BANK DEALERS THE DAILY REPORTS WOULD PROVIDE AGGREGATE DATA ABOUT MARKET VOLUME ON THE PREVIOUS BUSINESS DAY AND SPECIFIC PRICE AND VOLUME DATA ABOUT THOSE ISSUES THAT WERE TRADED FOUR OR MORE TIMES THE REPORTS WOULDN'T IDENTIFY THE DEALERS INITIALLY THE SURVEILLANCE REPORTS WOULD CONTAIN THE DETAILS OF INTER DEALER TRANSACTIONS INCLUDING THE IDENTITY OF THE DEALERS INVOLVED IN THE TRANSACTIONS AND PRICES OF INDIVIDUAL TRANSACTIONS THE M. S. R. B. SAID IT STRESSED THAT THE SURVEILLANCE REPORTS WOULD BE USED EXCLUSIVELY FOR MARKET SURVEILLANCE AND ENFORCEMENT PURPOSES AND WOULDN'T BE MADE PUBLIC THE M. S. R. B. SAID IT PLANS TO ADOPT A RULE LATER THIS YEAR REQUIRING DEALERS TO REPORT INTER DEALER TRANSACTIONS TO THE BOARD FOR THE PURPOSE OF PROVIDING PUBLIC ACCESS TO INFORMATION ON TRANSACTION VOLUME AND PRICES THE BOARD'S AGENT FOR RECEIVING DATA FROM DEALERS WOULD BE THE NATIONAL SECURITIES CLEARING CORPORATION A CLEARING CORPORATION REGISTERED WITH THE S. E. C. THE BOARD SAID THE INITIATIVE IS DESIGNED SPECIFICALLY TO MINIMIZE THE COSTS TO DEALERS OF REPORTING TRADES AS THE INDUSTRY AND THE BOARD OBTAIN EXPERIENCE WITH TRANSPARENCY THROUGH THE PILOT PROGRAM THE BOARD WILL SEEK COST EFFECTIVE MEANS TO FURTHER INCREASE TRANSPARENCY WITH THE ULTIMATE GOAL BEING THE DISSEMINATION OF COMPREHENSIVE CONTEMPORANEOUS PRICING DATA IT SAID THE M. S. R. B. SAID IT WOULD ENSURE THAT INTERESTED PARTIES ARE PROVIDED ACCESS TO THE DAILY REPORT ON A NONDISCRIMINATORY BASIS AND IN A MANNER THAT WOULD NOT CONFER SPECIAL OR UNFAIR ECONOMIC BENEFIT TO ANY PERSON NATIONAL MEDICAL ENTERPRISES INCORPORATED TOOK A TWO HUNDRED EIGHTY SEVEN POINT FOUR MILLION DOLLAR WRITE DOWN IN ITS SECOND QUARTER ENDED NOVEMBER THIRTIETH RELATED TO PREVIOUSLY ANNOUNCED PLANS TO DISPOSE OF ITS PSYCHIATRIC HOSPITALS THE SANTA MONICA CALIFORNIA COMPANY MONTHS AGO SAID IT EXPECTED TO TAKE A QUOTE SIZABLE QUOTE CHARGE AGAINST EARNINGS IN THE PERIOD BUT IT DIDN'T INDICATE HOW LARGE IT WOULD BE EVEN YESTERDAY NATIONAL MEDICAL DIDN'T BREAK OUT THE EXACT SIZE OF THE ONE TIME CHARGE FOR THE ACTUAL SALE OF ITS TROUBLED PSYCHIATRIC FACILITIES CHRISTI SULZBACH SENIOR VICE PRESIDENT SAID THAT THE TWO HUNDRED EIGHTY SEVEN POINT FOUR MILLION DOLLAR FIGURE DESCRIBED BY THE COMPANY AS A LOSS FROM DISCONTINUED OPERATIONS INCLUDES ANTICIPATED LOSSES TO OPERATE THOSE HOSPITALS UNTIL THE DIVESTITURE PLAN IS COMPLETED MS. SULZBACH SAID NATIONAL MEDICAL HOPES TO SELL ITS PSYCHIATRIC PROPERTIES IN THE NEXT FEW MONTHS ANALYSTS DESCRIBED YESTERDAY'S ANNOUNCEMENT AS AN EFFORT TO HEAD OFF PIECEMEAL WRITE DOWNS OR CONTINUING CHARGES THAT COULD BE A DRAG ON EARNINGS THEY TOOK AN EXTRAORDINARILY CONSERVATIVE APPROACH SAID MARGO VIGNOLA AN ANALYST AT SALOMON BROTHERS INCORPORATED THEY WROTE OFF EVERYTHING INCLUDING THE KITCHEN SINK SHE SAID TO MAKE SURE THEY WOULDN'T HAVE TO DO IT AGAIN IN ADDITION TO THE WRITE OFF ON THE SALE ITSELF THE COMPANY SAID THE TWO HUNDRED EIGHTY SEVEN POINT FOUR MILLION DOLLAR FIGURE INCLUDES CERTAIN SEVERANCE COSTS LEGAL COSTS OTHER COSTS STEMMING FROM THE TRANSACTION AND A NEARLY ONE POINT TWO MILLION DOLLAR LOSS FROM OPERATING THE PSYCHIATRIC SITES IN THE SECOND QUARTER OVERALL FOR THE QUARTER NATIONAL MEDICAL YESTERDAY REPORTED A NET LOSS OF TWO HUNDRED TWENTY SIX POINT TWO MILLION DOLLARS OR ONE DOLLAR AND THIRTY SIX CENTS A SHARE COMPARED WITH NET INCOME OF FIFTY TWO POINT FOUR MILLION DOLLARS OR THIRTY TWO CENTS A SHARE IN THE YEAR AGO QUARTER EARNINGS FROM CONTINUING OPERATIONS TRAILED YEAR EARLIER FIGURES BY ABOUT TWENTY PERCENT DESPITE WHAT THE COMPANY SAID WERE IMPROVED PROFIT MARGINS AND ENHANCED COST CONTROLS AT ITS CORE ACUTE CARE HOSPITALS FOR THE SIX MONTHS ENDED NOVEMBER THIRTIETH THE COMPANY POSTED A NET LOSS OF NEARLY TWO HUNDRED SEVENTY MILLION DOLLARS OR ONE DOLLAR AND SIXTY ONE CENTS A SHARE COMPARED WITH NET INCOME OF ONE HUNDRED THREE MILLION DOLLARS OR SIXTY TWO CENTS A SHARE A YEAR AGO THE LATEST SIX MONTH RESULTS INCLUDE A FOUR HUNDRED FORTY ONE MILLION DOLLAR LOSS FROM DISCONTINUED OPERATIONS AND A SIXTY POINT ONE MILLION DOLLAR GAIN FROM ACCOUNTING CHANGES THE YEAR EARLIER FIGURES INCLUDE A TWENTY FIVE POINT FOUR MILLION DOLLAR LOSS FROM DISCONTINUED OPERATIONS THE HEALTH CARE COMPANY HAS BEEN REELING UNDER WIDESPREAD CHARGES OF BILLING FRAUD AND MISTREATMENT OF PATIENTS AT ITS PSYCHIATRIC FACILITIES IN OCTOBER IT SUSPENDED DIVIDENDS ON COMMON STOCK AND ADDED TWO HUNDRED FIFTY MILLION DOLLARS TO A PRETAX RESERVE TO SETTLE PENDING LITIGATION BUT THOSE ESTIMATES DON'T INCLUDE PROVISIONS FOR PAYMENTS RELATED TO VARIOUS STATE AND FEDERAL INVESTIGATIONS AND ALONG WITH YESTERDAY'S QUARTERLY EARNINGS REPORT CHAIRMAN JEFFREY BARBAKOW SAID THAT THE FINANCIAL IMPACT OF THE COMPANY'S RECENT SALE OF ITS REHABILITATION HOSPITALS WON'T BE SEEN UNTIL RESULTS ARE REPORTED FOR THE CURRENT QUARTER NATIONAL MEDICAL STOCK CLOSED YESTERDAY AT FIFTEEN DOLLARS AND TWENTY FIVE CENTS UP TWELVE POINT FIVE CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING RICHARD W. BARKER THE FORTY FIVE YEAR OLD HEAD OF MCKINSEY AND COMPANY'S EUROPEAN HEALTH CARE PRACTICE WAS NAMED TO THE NEW POST OF PRESIDENT OF THE HEALTH CARE INDUSTRIES RESTRUCTURING GROUP FOR THE I. B. M. CONSULTING GROUP DURING A HOLIDAY TRIP TO THE MIDWEST IT WAS POSSIBLE TO FILL UP A GAS TANK FOR THE PLEASANT PRICE OF EIGHTY FIVE CENTS A GALLON AND LISTEN TO RELATIVES HAPPILY SWAPPING STORIES ABOUT PAYING A MERE SEVENTY FIVE CENTS DAYS EARLIER SO THIS IS A GOOD TIME TO LOOK BACK AT THE MYTHS PERPETRATED LAST SUMMER ABOUT THE DEVASTATING IMPACT THE NEW FOUR POINT THREE CENT A GALLON GASOLINE TAX WOULD HAVE ON THE NATION'S ECONOMY THE FACTS ARE THAT THE MEMBERS OF CONGRESS WHO MADE THOSE DIRE PREDICTIONS WERE WRONG THAT GASOLINE PRICES ARE LOWER NOW THAN BEFORE THE TAX PASSED THAT THIS DEVELOPMENT WASN'T A TOTAL SURPRISE AND THAT A GOLDEN OPPORTUNITY TO MORE SERIOUSLY ADDRESS BOTH THE DEFICIT AND ENERGY POLICY WAS FRITTERED AWAY FOR THOSE WHOSE MEMORIES HAVE SLIPPED HERE'S A QUICK RECAP LAST YEAR OPENED WITH MUCH WAILING AND GNASHING OF TEETH ABOUT A FEDERAL BUDGET DEFICIT THAT WAS AT THREE HUNDRED BILLION DOLLARS A YEAR AND CLIMBING TOWARD FOUR HUNDRED BILLION DOLLARS IN RESPONSE PRESIDENT CLINTON PRESENTED A DEFICIT CUTTING BILL IN WHICH HE DITCHED SOME CAMPAIGN PROMISES IN ORDER TO ATTACK THE RED INK THE CENTERPIECE WAS A BROAD BASED ENERGY TAX THE INFAMOUS B. T. U. TAX THAT WAS TO RAISE SEVENTY TWO BILLION DOLLARS OVER FIVE YEARS THE B. T. U. TAX WAS INSTANTLY UNPOPULAR AND THE SENATE KILLED IT BUT HAVING PIOUSLY PROCLAIMED THE EVILS OF THE BUDGET DEFICIT SENATORS COULDN'T JUST LEAVE A SEVENTY TWO BILLION DOLLAR HOLE SO THE FALLBACK BECAME A FOUR POINT THREE CENT A GALLON GASOLINE TAX WHICH WOULD RAISE TWENTY FOUR BILLION DOLLARS OVER FIVE YEARS THE GAS TAX PASSED THOUGH AT TIMES THE CONGRESSIONAL DEBATE SUGGESTED A GUN WAS BEING HELD TO THE HEAD OF THE ECONOMY QUOTE IT WILL HAVE A RIPPLE EFFECT THROUGHOUT OUR ECONOMY QUOTE DECLARED WISCONSIN DEMOCRAT HERB KOHL IT WILL AFFECT THE TRUCKING INDUSTRY AND PRICES THAT PEOPLE PAY AND JOBS IT WILL AFFECT THE AIRLINE INDUSTRY AND WHAT PEOPLE PAY FOR TICKETS AS WELL AS JOBS IT WILL HAVE A REAL NEGATIVE EFFECT ON THE ECONOMY ECHOED REPUBLICAN FRANK MURKOWSKI OF ALASKA THIS TAX IS GOING TO STEAL AMERICAN JOBS AND MAKE US LESS COMPETITIVE OVERSEAS THE REALITY SIX MONTHS LATER IS THAT AMERICAN JOBS ARE BEING LOST BUT THEY'RE BEING LOST IN THE OIL PATCH BECAUSE ENERGY PRICES ARE SO LOW AN AMERICAN AUTOMOBILE ASSOCIATION SURVEY SHOWS THAT THE AVERAGE PRICE OF A GALLON OF REGULAR UNLEADED GASOLINE IN MID DECEMBER AFTER THE GASOLINE TAX WAS PUT INTO EFFECT WAS ONE DOLLAR AND NINE CENTS A GALLON THREE CENTS LESS THAN AT THE TIME OF THE SENATE DEBATE THE MOST ACCURATE PREDICTION IT TURNS OUT CAME FROM LOUISIANA DEMOCRAT JOHN BREAUX WHO DECLARED THAT IN INFLATION ADJUSTED TERMS GASOLINE WILL BE CHEAPER THAN IT WAS IN NINETEEN NINETY CHEAPER THAN IT WAS IN NINETEEN EIGHTY FIVE CHEAPER THAN IT WAS IN NINETEEN EIGHTY NINETEEN SEVENTY FIVE NINETEEN SEVENTY NINETEEN SIXTY FIVE AND YES IT WILL BE EVEN CHEAPER WITH THE TAX THAN IT WAS IN REAL TERMS IN NINETEEN TWENTY THIS IS HAPPENING BECAUSE WORLD OIL PRICES ARE DROPPING THROUGH THE FLOOR AND AMERICANS ARE GOBBLING UP CHEAP IMPORTED CRUDE OIL IS SELLING FOR BELOW FIFTEEN DOLLARS A BARREL TEN DOLLARS A BARREL LESS THAN IT DID THREE YEARS AGO DURING THE IRAQI OCCUPATION OF KUWAIT THROUGH THE FIRST ELEVEN MONTHS OF NINETEEN NINETY THREE THE U. S. IMPORTED AN ESTIMATED EIGHT POINT FIVE MILLION BARRELS OF THIS CHEAP OIL A DAY UP FROM AN AVERAGE OF SEVEN POINT NINE MILLION BARRELS A DAY A YEAR EARLIER AND KEEP IN MIND THAT THIS FLOOD OF CHEAP OIL HAS DEVELOPED BEFORE IRAQ'S BIG OIL FIELDS ARE REOPENED TO THE WORLD ONE DIDN'T HAVE TO BE CLAIRVOYANT TO SEE THIS SITUATION COMING IF LAWMAKERS WERE TRULY AS CONCERNED ABOUT THE DEFICIT AS THEY CLAIMED THEY COULD HAVE PASSED A GAS TAX TWICE AS BIG AND DOUBLED THE DENT PUT INTO THE DEFICIT AND MOTORISTS STILL WOULDN'T BE PAYING A SIGNIFICANTLY DIFFERENT PRICE FOR GASOLINE NOW THAN THEY WERE BEFOREHAND MORE IMPORTANT SLIDING OIL PRICES GAVE AMERICA A RARE AND MISSED OPPORTUNITY LAST YEAR TO CONDUCT A CALM DEBATE ABOUT ITS OVERALL ENERGY POLICY AND WHETHER IT REALLY WANTS TO CONTINUE BINGING ON IMPORTED OIL OR INSTEAD START PAYING MORE ATTENTION TO LONG TERM DOMESTIC ENERGY SOURCES THIS ISN'T TO SAY A GASOLINE TAX IS A GREAT THING GAS TAXES ARE IN FACT A LITTLE NASTY REGRESSIVE AND UNEVEN IN REGIONAL IMPACT CANDIDATE BILL CLINTON WHO LATER PUSHED THE GAS TAX SAID IT HIMSELF IN HIS CAMPAIGN WHEN HE DECLARED THAT HE OPPOSED A BACKBREAKING FEDERAL GAS TAX BUT DEFICIT REDUCTION REQUIRES DOING SOMETHING NASTY SOMEWHERE PARTICULARLY TELLING MIDDLE CLASS AMERICANS THEY WILL HAVE TO EITHER ACCEPT SMALLER VERSIONS OF THE ENTITLEMENT PROGRAMS THEY'VE GROWN TO EXPECT OR TO PAY MORE FOR THEM THE OTHER OPTION IS TO LEAVE MORE BILLS TO BE PAID BY THE NEXT GENERATION OF AMERICANS A CHOICE THAT WOULD BE IRRESPONSIBLE AND PAINFUL IN ITS OWN WAY IF LAWMAKERS BELIEVE THEIR OWN DEFICIT RHETORIC A PRETTY BIG IF THEN THEY BLEW A BIG CHANCE TO DO MORE ABOUT IT LAST SUMMER GENERAL INSTRUMENT CORPORATION A SUPPLIER OF EQUIPMENT TO THE CABLE TELEVISION INDUSTRY NAMED A FORMER SALES EXECUTIVE FROM AMERICAN TELEPHONE AND TELEGRAPH COMPANY TO ITS MANAGEMENT TEAM J. A. BLANCHARD THE THIRD FIFTY ONE YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT CORPORATE DEVELOPMENT ACTIVITIES A NEW POSITION MR. BLANCHARD WAS FORMERLY SENIOR VICE PRESIDENT OF THE BUSINESS SALES DIVISION OF A. T. AND T. HEAD OF THE NATIONAL BUSINESS SALES FORCE HE TOOK EARLY RETIREMENT IN NINETEEN NINETY ONE AFTER TWENTY FIVE YEARS MOST RECENTLY HE HAD BEEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HARBRIDGE MERCHANT SERVICES A CREDITCARD PROCESSING COMPANY IN ADDITION CHARLES T. DICKSON WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR. DICKSON THIRTY NINE SUCCEEDS RICHARD S. FRIEDLAND FORTY THREE WHO HAD REMAINED C. F. O. ON AN INTERIM BASIS AFTER BEING NAMED GENERAL INSTRUMENT'S PRESIDENT AND CHIEF OPERATING OFFICER LAST YEAR MR. DICKSON A TEN YEAR VETERAN OF M. C. I. COMMUNICATIONS CORPORATION MOST RECENTLY WAS VICE PRESIDENT FINANCE AND ADMINISTRATION AT M. C. I. WHERE GENERAL INSTRUMENT'S CHAIRMAN DANIEL F. AKERSON HAD BEEN PRESIDENT BEFORE HE JOINED GENERAL INSTRUMENT LAST AUGUST YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIX MONTH SMALL DENOMINATION QUOTE SAVINGS QUOTE C. D.S REMAINED AT TWO POINT SEVEN FOUR PERCENT ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVE YEAR SAVINGS C. D.S ALSO REMAINED STEADY AT FOUR POINT FOUR SIX PERCENT THE WILMINGTON DELAWARE INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIX MONTH BROKER SOLD C. D.S FELL TO THREE POINT ONE TWO PERCENT FROM THREE POINT ONE SEVEN PERCENT ON FIVE YEAR BROKER SOLD C. D.S THE AVERAGE YIELD ROSE TO FOUR POINT FOUR EIGHT PERCENT FROM FOUR POINT FOUR FOUR PERCENT THE SURVEY SAID ON LARGE DENOMINATION JUMBO C. D.S WHICH TYPICALLY REQUIRE DEPOSITS OF NINETY FIVE THOUSAND DOLLARS OR MORE THE AVERAGE YIELD ON A SIX MONTH CERTIFICATE FELL TO TWO POINT SEVEN NINE PERCENT FROM TWO POINT EIGHT PERCENT ON FIVE YEAR JUMBOS THE AVERAGE FELL TO FOUR POINT SIX SIX PERCENT FROM FOUR POINT SIX EIGHT PERCENT BANXQUOTE SAID PHILLIPS PETROLEUM COMPANY AS EXPECTED NAMED W. W. ALLEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER EFFECTIVE MAY FIRST MR. ALLEN FIFTY SEVEN YEARS OLD IS THE OIL COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER HE WILL SUCCEED CHAIRMAN AND CHIEF EXECUTIVE C. J. PETE SILAS SIXTY ONE WHO RETIRES IN APRIL SUCCEEDING MR. ALLEN AS PRESIDENT AND CHIEF OPERATING OFFICER WILL BE THE COMPANY'S CHIEF FINANCIAL OFFICER J. J. MULVA FORTY SEVEN MR. MULVA WHO WILL RETAIN HIS CURRENT POSITION WAS ALSO NAMED EXECUTIVE VICE PRESIDENT EFFECTIVE IMMEDIATELY IN ANOTHER APPOINTMENT J. L. WHITMIRE FIFTY THREE FORMERLY SENIOR VICE PRESIDENT WORLDWIDE EXPLORATION AND PRODUCTION WAS PROMOTED TO EXECUTIVE VICE PRESIDENT EFFECTIVE IMMEDIATELY BOTH MESSRS MULVA AND WHITMIRE WERE ELECTED TO THE BOARD INCREASING THE SIZE TO FIFTEEN THE OPERATOR OF THE TUNNEL BENEATH THE ENGLISH CHANNEL ANNOUNCED ITS FARES FOR LE SHUTTLE THE TRAIN SERVICE FOR TRANSPORTING VEHICLES WITH PASSENGERS BETWEEN BRITAIN AND FRANCE STARTING MAY EIGHTH PRICES PER CAR NO MATTER HOW MANY PASSENGERS RANGE SEASONALLY BETWEEN THREE HUNDRED THIRTY DOLLARS AND FOUR HUNDRED SIXTY FIVE DOLLARS ROUND TRIP EUROTUNNEL AN ANGLO FRENCH CONSORTIUM THAT BUILT THE SO CALLED CHUNNEL FOR FOURTEEN POINT NINE THREE BILLION DOLLARS SET AN INTRODUCTORY ONE HUNDRED EIGHTY FIVE DOLLAR FARE FOR JUNE AND JULY TICKETS GO ON SALE TODAY THROUGH TRAVEL AGENTS THE FARES WERE FAR HIGHER THAN EXPECTED TO BE COMPETITIVE WITH FERRY PRICES BETWEEN ONE HUNDRED EIGHTY FIVE DOLLARS AND THREE HUNDRED FORTY FIVE DOLLARS EUROTUNNEL IS BETTING TRAVELERS WILL PAY MORE FOR THE HIGH SPEED THIRTY MINUTE TRIP IN THE THIRTY ONE MILE CHUNNEL UNAFFECTED BY WEATHER THAN FOR SEA CROSSINGS OF AT LEAST EIGHTY MINUTES EUROTUNNEL SAID IT WOULDN'T ENGAGE IN A PRICE WAR IF FERRY OPERATORS CUT THEIR FARES EUROTUNNEL WILL BEGIN OPERATING A FREIGHT SERVICE IN MARCH STARTING SEPTEMBER FIFTH LE SHUTTLE WILL TRANSPORT BUSES LIGHT COMMERCIAL VEHICLES TRAILERS AND CAMPERS UZBEKISTAN AND KAZAKHSTAN AGREED TO FORM A COMMON MARKET THROUGH THE YEAR TWO THOUSAND AND TO START COORDINATING ECONOMIC POLICIES NEXT YEAR NEXT MONTH TARIFFS BETWEEN THE NEIGHBORING CENTRAL ASIAN COUNTRIES WILL BE ABOLISHED AND BORDER CUSTOMS ELIMINATED ALLOWING FREE MOVEMENT OF GOODS SERVICES CAPITAL AND LABOR THE TWO FORMER SOVIET REPUBLICS WITH A COMBINED POPULATION OF THIRTY NINE MILLION SAID THEY CAN SATISFY MOST OF EACH OTHER'S TRADE NEEDS KAZAKHSTAN IS RICH IN ENERGY AND AGRICULTURE UZBEKISTAN IN COTTON PRODUCTION AND GOLD BILATERAL TRADE LAST YEAR TOTALED ABOUT FIVE HUNDRED MILLION DOLLARS THAILAND'S CABINET APPROVED A FINANCIAL LIBERALIZATION THAT IMMEDIATELY RELAXES CURBS ON FOREIGN EXCHANGE TRANSFERS AND ALLOWS FOREIGN OFFSHORE BANKS TO OPEN BRANCHES OUTSIDE BANGKOK THE PACKAGE ALSO ALLOWS THAI FINANCE COMPANIES TO SEPARATE FINANCIAL AND SECURITIES TRADING OPERATIONS THE RULES ARE AIMED PARTLY AT EXPANDING RURAL FIRMS' ACCESS TO CREDIT AND FINANCING FOR DEVELOPMENT PROJECTS SOME FOREIGN BANKERS SAW EXPANSION OPPORTUNITIES BUT OTHERS WERE UNIMPRESSED BECAUSE RETAIL BANKING IS STILL RESTRICTED WESTERN GERMANY'S CHEMICAL WORKERS ACCEPTED A SMALL PAY BOOST IN RETURN FOR VAGUE VOWS TO PRESERVE JOBS IN THE AILING INDUSTRY THE PACT THE FIRST THIS YEAR FOR A MAJOR GERMAN INDUSTRY COULD SET A PATTERN FOR OTHER WAGE TALKS UNDER WAY POLITICIANS SAID THE AGREEMENT ACKNOWLEDGES GERMANY'S RECESSIONARY WOES AND MAY HELP DISMANTLE RIGID RULES THAT ARE HURTING INDUSTRIAL COMPETITIVENESS THE I. G. CHEMIE UNION WITH SEVEN HUNDRED THOUSAND MEMBERS ACCEPTED A PAY FREEZE THROUGH NEXT JANUARY THEN WAGES WILL RISE TWO PERCENT ANNUAL INFLATION A MONTH AGO RAN AT THREE POINT SIX PERCENT WORKWEEKS NOW THIRTY SEVEN POINT FIVE HOURS MAY RANGE FROM THIRTY FIVE TO FORTY HOURS LESSENING OVERTIME OUTLAYS LAST YEAR THREE HUNDRED FIFTY MILLION CHINESE BOUGHT LIFE INSURANCE AND ONE HUNDRED MILLION PEOPLE BOUGHT FAMILY PROPERTY COVERAGE REPRESENTING THIRTY FIVE PERCENT INCREASES FROM A YEAR EARLIER THE STATE RUN PEOPLE'S INSURANCE COMPANY OF CHINA SAID THE ENTERPRISE HAS A NINETY PERCENT MARKET SHARE AND ITS NINETEEN NINETY THREE PREMIUM INCOME JUMPED THIRTY SIX PERCENT TO FIVE POINT SEVEN THREE BILLION DOLLARS FROM NINETEEN NINETY TWO THE GOVERNMENT WHICH SET UP THE STATE CONTROLLED INDUSTRY IN NINETEEN EIGHTY TWO HAS MOVED CAUTIOUSLY TO OPEN IT TO FOREIGN FIRMS SAYING IT WANTS THE BUSINESS TO DEVELOP SLOWLY NORTH KOREA SEEKING TO ATTRACT FOREIGN INVESTMENT TO HELP ITS STRUGGLING ECONOMY UNVEILED LABOR REGULATIONS FOR FOREIGN FUNDED COMPANIES OPERATING IN THE COMMUNIST STATE WORKERS WILL BE PROVIDED BY A NORTH KOREAN LABOR SERVICE AGENCY THE RULES SET MINIMUM PAY LEVELS FOR A FORTY EIGHT HOUR WORK WEEK AND EXTRA PAY FOR OVERNIGHT SHIFTS CAP OVERTIME AT FORTY EIGHT HOURS A MONTH AND PROVIDE FOR PAY RAISES BASED ON PRODUCTIVITY AND QUALIFICATIONS FOREIGN FUNDED COMPANIES MUST PAY FEES INTO A SOCIAL SECURITY FUND FOR WORKERS IN NINETEEN NINETY THREE WESTERN EUROPE'S AUTO INDUSTRY HAD ITS WORST YEAR SINCE WORLD WAR TWO AS NEW PASSENGER CAR REGISTRATIONS IN SEVENTEEN COUNTRIES PLUMMETED FIFTEEN PERCENT TO ELEVEN POINT FIVE MILLION UNITS FROM THIRTEEN POINT FIVE MILLION IN NINETEEN NINETY TWO LAST MONTH ALONE THE AUTO MARKET CRASHED NINETEEN POINT SIX PERCENT TO SEVEN HUNDRED EIGHTY THREE THOUSAND FIVE HUNDRED SEVENTY UNITS FROM A YEAR EARLIER WHEN MEASURES SUCH AS TAX INCENTIVES SKEWED COMPARISONS ONLY THE BRITISH MARKET RECOVERING FROM SEVERELY DEPRESSED LEVELS AFTER THREE YEARS OF RECESSION IMPROVED LAST YEAR RISING ELEVEN POINT SIX PERCENT FOR THIS YEAR THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION EXPECTS FURTHER DECLINES AS ECONOMIES EXCEPT BRITAIN STAGNATE OR SHRINK THIS ASSUMES PERSISTENT PAINFUL BUSINESS CONDITIONS AND JOB LOSSES UNLESS THE AUTO INDUSTRY AND GOVERNMENTS CUSHION ATTEMPTS TO IMPROVE PRODUCTIVITY THROUGH LAYOFFS THAT CUT BUYING POWER AND CAUSE MORE ECONOMIC ILLS THE ASSOCIATION URGED EUROPEAN GOVERNMENTS TO STAND TOUGH ON PREVENTING FURTHER MARKET SHARE GAINS BY JAPANESE AUTO MAKERS ON THE CONTINENT MICROTEL FRANCHISE AND DEVELOPMENT CORPORATION SAID IT HAS REPURCHASED FIFTY THOUSAND OF ITS COMMON SHARES AT BETWEEN TWO DOLLARS AND FIFTY CENTS AND THREE DOLLARS A SHARE G. T. E. CORPORATION'S G. T. E. SPACENET UNIT RECEIVED A MULTIMILLION DOLLAR CONTRACT TO PROVIDE AMERICATEL CORPORATION WITH TELEPORT FACILITIES IN MIAMI TO OFFER VOICE AND DATA SERVICES BETWEEN THE U. S. AND LATIN AMERICA TERMS WEREN'T DISCLOSED CAMDEN PROPERTY TRUST ACQUIRED AN EIGHTEEN POINT FIVE ACRE SITE IN AUSTIN TEXAS FOR ABOUT SEVENTEEN POINT EIGHT MILLION DOLLARS AND PLANS TO DEVELOP A THREE HUNDRED NINETY EIGHT UNIT APARTMENT COMPLEX THERE HICKS MUSE AND COMPANY DALLAS SAID CHANCELLOR COMMUNICATIONS CORPORATION COMPLETED THE PURCHASE OF RADIO STATIONS KFBK A. M. AND KGBY F. M. IN SACRAMENTO CALIFORNIA FOR ABOUT FORTY EIGHT MILLION DOLLARS CAMDEN PROPERTY TRUST SAID THE ESTIMATED COST FOR ACQUIRING LAND AND DEVELOPING AN APARTMENT COMPLEX IN AUSTIN TEXAS IS SEVENTEEN POINT EIGHT MILLION DOLLARS AN ITEM WEDNESDAY INCORRECTLY STATED THAT THE COST OF THE LAND ALONE WAS SEVENTEEN POINT EIGHT MILLION DOLLARS IN ANOTHER LEGAL SETBACK FOR FEDERAL ANTI DRUG EFFORTS THE SUPREME COURT MADE IT HARDER FOR FEDERAL PROSECUTORS TO PROVE CASES ALLEGING A COMMON TYPE OF MONEY LAUNDERING THE HIGH COURT RULED FIVE TO FOUR THAT PEOPLE CAN BE CONVICTED OF EVADING A REQUIREMENT THAT LARGE CASH TRANSACTIONS BE REPORTED TO THE GOVERNMENT ONLY IF PROSECUTORS DEMONSTRATE THAT THE DEFENDANTS KNEW THEY WERE COMMITTING A CRIME THE MAJORITY REJECTED THE JUSTICE DEPARTMENT'S CONTENTION THAT DEFENDANTS MAY BE FOUND GUILTY EVEN IF THEY DIDN'T REALIZE THAT IT IS ILLEGAL TO BREAK UP CASH DEPOSITS TO AVOID TRIGGERING A CURRENCY REPORTING RULE YESTERDAY'S DECISION INVOLVED DEFENDANTS WHO WERE GAMBLERS IT IS THE LATEST IN A SERIES OF SUPREME COURT CASES THAT HAVE PLACED RESTRAINTS ON FEDERAL EFFORTS TO ATTACK DRUG TRAFFICKING AND OTHER CRIME BY CONFISCATING OR MAKING IT DIFFICULT TO CONCEAL ILLICIT PROFITS OTHER RECENT DECISIONS HAVE IMPOSED LIMITS ON GOVERNMENT SEIZURE OF ASSETS SUCH AS REAL ESTATE THE HIGH COURT RULING WAS A VICTORY FOR AN OREGON COUPLE WALDEMAR AND LORETTA RATZLAF WHO GOT INTO TROUBLE AFTER THEY RAN UP A BLACKJACK DEBT OF ONE HUNDRED SIXTY THOUSAND DOLLARS AT A LICENSED CASINO IN RENO NEVADA THE RATZLAFS PROPOSED TO PAY IN CASH THE CASINO SAID THAT LIKE A BANK IT WAS OBLIGATED TO REPORT CASH TRANSACTIONS EXCEEDING TEN THOUSAND DOLLARS TO FEDERAL AUTHORITIES THE RATZLAFS THEN BOUGHT CASHIER'S CHECKS AT VARIOUS BANKS FOR LESS THAN TEN THOUSAND DOLLARS EACH AND DELIVERED THEM TO THE CASINO A MANEUVER DESIGNED NOT TO TRIGGER THE REPORTING RULE PROSECUTORS SUGGESTED THAT THE COUPLE'S GOAL WAS TO AVOID AN AUDIT THAT WOULD SHOW THEY HAD EVADED TAXES ON SEPARATE GAMBLING INCOME BUT SUCH CHARGES WEREN'T FILED AT TRIAL THE JUDGE INSTRUCTED THE JURY THAT THE RATZLAFS COULD BE CONVICTED OF ILLEGALLY QUOTE STRUCTURING QUOTE THE CASHIER CHECK PURCHASES EVEN IF THEY DIDN'T KNOW THAT A NINETEEN EIGHTY SIX FEDERAL LAW MADE SUCH EVASION A CRIME THE RATZLAFS WERE FOUND GUILTY AND THE FEDERAL APPEALS COURT IN SAN FRANCISCO UPHELD THE VERDICT THE JUSTICE DEPARTMENT DEFENDED THE CONVICTIONS SAYING THEY COULD PROPERLY BE BASED ON THE RATZLAFS' ADMISSION THAT THEY WERE AWARE OF THE REPORTING RULE AND TRIED TO AVOID TRIGGERING IT BUT JUSTICE RUTH BADER GINSBURG STRESSED THAT WHILE EVASION OF THE RULE MAY RAISE SOME SUSPICIONS IT ISN'T INEVITABLY NEFARIOUS INNOCENT PEOPLE MAY WANT ONLY TO AVOID AN INTRUSIVE AUDIT SHE SAID JOINING THE MAJORITY WERE JUSTICES JOHN PAUL STEVENS ANTONIN SCALIA ANTHONY KENNEDY AND DAVID SOUTER JOINING THE BLACKMUN DISSENT WERE CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES SANDRA DAY O'CONNOR AND CLARENCE THOMAS RATZLAF VERSUS U. S. NATIONAL SEMICONDUCTOR CORPORATION IS MOUNTING AN EFFORT TO POPULARIZE CREDIT CARD SIZED DEVICES THAT USE CODES TO PROTECT COMPUTER MESSAGES AND TRANSACTIONS FROM CROOKS AND EAVESDROPPERS THE SEMICONDUCTOR MAKER WILL UNVEIL TODAY A DATA SECURITY TECHNOLOGY BASED ON A MICROCHIP THAT CAN BE PLACED IN POCKET SIZED CARDS OR IN OTHER HARDWARE THE CHIP INCLUDES MATHEMATICAL FORMULAS THAT ENCRYPT COMPUTER DATA TO PROTECT PRIVACY AND THAT VERIFY USERS' IDENTITIES FOR FINANCIAL TRANSACTIONS OR TO ALLOW ACCESS TO DATA AND COMPUTER NETWORKS A CARD WITH THE CHIP WOULD PLUG INTO A PERSONAL COMPUTER AND TAKE THE PLACE OF A PASSWORD NATIONAL SEMICONDUCTOR SANTA CLARA CALIFORNIA INTENDS TO WORK WITH RSA DATA SECURITY INCORPORATED A CLOSELY HELD MAKER OF ENCRYPTION SOFTWARE IN REDWOOD CITY CALIFORNIA TO SET NEW TECHNICAL STANDARDS FOR SUCH SECURITY TOKEN DEVICES IF ADOPTED P. C.S AND PORTABLE COMMUNICATIONS DEVICES MIGHT BE USED WITH TOKENS TO ALLOW USERS TO PROTECT THE PRIVACY OF THEIR ELECTRONIC MAIL AND TO BUY GOODS ON THEIR MACHINES IN ADDITION NATIONAL SEMICONDUCTOR HOPES ITS SECURITY CHIPS WILL BE USED TO METER TRANSACTIONS BILLING USERS FOR RETRIEVING NEWS ARTICLES FROM A STORAGE DISK FOR EXAMPLE OR FOR CALLING UP COMPUTERIZED MOVIES FROM A TELEVISION DECODER QUOTE METERING AND THE WHOLE CONCEPT OF ELECTRONIC COMMERCE IS GOING TO BE AN AWESOMELY LARGE OPPORTUNITY QUOTE SAID WALT CURTIS VICE PRESIDENT OF NATIONAL SEMICONDUCTOR'S STRATEGIC BUSINESS UNIT OTHERS ARE LIKELY TO PROPOSE RIVAL STANDARDS IN THE SAME FIELD ENCRYPTION A TECHNIQUE ORIGINALLY USED TO PROTECT CLASSIFIED GOVERNMENT DATA IS ALREADY BEING USED IN SOME FASHION BY NEARLY EVERY MAJOR COMPUTER VENDOR APPLE COMPUTER INCORPORATED LOTUS DEVELOPMENT CORPORATION AND MICROSOFT CORPORATION FOR EXAMPLE ALREADY LICENSE RSA ENCRYPTION SOFTWARE TO ADD DATA SECURITY FEATURES TO SOFTWARE THEY SELL HOWEVER TOKENS ARE LESS VULNERABLE THAN ENCRYPTION SOFTWARE TO UNSCRUPULOUS HACKERS AND HAVE LONG BEEN USED AT SECRET GOVERNMENT FACILITIES NATIONAL SEMICONDUCTOR'S CHIP WHICH CAN USE RSA'S ENCRYPTION FORMULA OR A GOVERNMENT PROPOSED STANDARD CALLED SKIPJACK HAS AN UNUSUAL DESIGN THAT AUTOMATICALLY ERASES ALL DATA IT CONTAINS IF ANYONE TRIES TO DISASSEMBLE IT OR TO USE ELECTRONIC INSTRUMENTS TO READ ITS CONTENTS THE COMPANY EXPECTS TO LINE UP SOFTWARE COMPANIES AND OTHER PARTNERS TO START SELLING SUCH TOKENS AT A RETAIL PRICE OF AROUND ONE HUNDRED FIFTY DOLLARS COMPARED WITH SEVERAL HUNDRED DOLLARS FOR GOVERNMENT ISSUE TECHNOLOGY ANOTHER COMPANY WITH SIMILAR COMMERCIAL PLANS IS SEMAPHORE COMMUNICATIONS CORPORATION A XEROX CORPORATION DATA SECURITY SUBSIDIARY THAT HAS BEEN TALKING TO CHIP MAKERS ABOUT EMBEDDING ITS TECHNOLOGY IN CARD TYPE TOKENS WILLIAM FERGUSON A SEMAPHORE VICE PRESIDENT SAID HE THINKS NATIONAL SEMICONDUCTOR'S TECHNOLOGY IS STILL TOO EXPENSIVE ESPECIALLY WHEN ONE INCLUDES THE PRICE OF TOKEN READING DEVICES THAT MUST BE ATTACHED TO COMPUTERS NEVERTHELESS MR. FERGUSON PREDICTS LOW PRICED TOKENS WILL EVENTUALLY BECOME COMMONPLACE FOR PROTECTING DATA AFTER A FEW YEARS OF EXPERIMENTATION WITH DIFFERENT TECHNOLOGIES I THINK IT'S GOING TO BECOME THE STANDARD FOR DUE CARE IT DOESN'T GET ANY BETTER THAN THIS A STEADILY GROWING ECONOMY LOW INTEREST RATES AND LOW INFLATION AND CORPORATE COFFERS FILLING WITH CASH ARE ALL COMBINING TO GIVE STOCK PRICES A HEADY BOOST AND IF THE BULLS ARE RIGHT AND THEY HAVE BEEN FOR THE PAST THREE YEARS THE GOOD TIMES WILL KEEP ON ROLLING RIGHT PAST FOUR THOUSAND ON THE DOW JONES INDUSTRIAL AVERAGE QUOTE I'M EXPECTING THE MARKET TO RALLY TO FOUR THOUSAND TWO HUNDRED IN THE NEXT THREE MONTHS QUOTE SAYS DON HAYS DIRECTOR OF INVESTMENT STRATEGY AT WHEAT FIRST SECURITIES SLASH BUTCHER AND SINGER IN RICHMOND VIRGINIA AND MR. HAYS'S PREDICTIONS PALE BESIDE THE EBULLIENT FORECAST OF EDWARD YARDENI CHIEF ECONOMIST AT C. J. LAWRENCE DEUTSCHE BANK SECURITIES CORPORATION MY MANTRA IS FIVE THOUSAND ON THE DOW BY NINETEEN NINETY FIVE OF COURSE THE CLIMB MAY WELL BE INTERRUPTED THE HISTORY OF THE CURRENT BULL MARKET LOOKS MORE LIKE A STAIRCASE THAN A STRAIGHT LINE WITH SHARP FAST GAINS FOLLOWED BY PERIODS OF STAGNATION INDEED YESTERDAY THE MARKET DROPPED FIFTEEN POINT TWO POINTS PRIMARILY AS A RESULT OF PROFIT TAKING AFTER FOUR CONSECUTIVE RECORD DAYS THERE IS EVEN THE POSSIBILITY THAT SOME UNFORESEEN EVENT COULD TRIGGER A DOWNTURN IN PRICES PERHAPS BY AS MUCH AS FIFTEEN PERCENT SOME ANALYSTS FIGURE THAT BY SHEER DINT OF ITS AGE AT THIRTY NINE MONTHS ONE OF THE OLDEST BULL MARKETS EVER THIS ONE IS OVERDUE FOR A DIP BUT FEW BELIEVE THE RALLY IS AT ITS END THE THREE YEAR OLD BULL MARKET THAT HAS CARRIED THE INDUSTRIAL AVERAGE UP SIXTY THREE PERCENT SINCE OCTOBER NINETEEN NINETY HAS BEEN DRIVEN PRINCIPALLY BY AN UNPRECEDENTED DECLINE IN INTEREST RATES SHORT TERM RATES HAVE DROPPED DURING THAT PERIOD TO THREE PERCENT FROM SEVEN POINT FOUR PERCENT LONG TERM RATES HOVERING AT JUST ABOVE SIX PERCENT ARE AT THE LOWEST LEVEL SINCE THE TREASURY BEGAN ISSUING THIRTY YEAR BONDS IN NINETEEN SEVENTY SEVEN THOSE DECLINES HAVE UNLEASHED IMMENSE FINANCIAL FORCES EVEN CONSERVATIVE INVESTORS HAVE FLED LOW YIELDING BANK DEPOSITS FOR THE GREATER RETURNS OF STOCKS MILLIONS OF HOMEOWNERS HAVE REFINANCED THEIR DEBTS AND GAINED EXTRA SPENDING POWER AND CORPORATIONS ARE ENJOYING THE LOWEST BORROWING COSTS IN DECADES THE DROP IN LONG TERM INTEREST RATES IS PROBABLY THE MOST IMPORTANT FACTOR IN THE CURRENT BULL MARKET SAYS SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORPORATION IN MINNEAPOLIS IT ISN'T JUST CHEAP MONEY THAT HAS PROPELLED THE STOCK MARKET HIGHER THE MASSIVE RESTRUCTURINGS THAT MANY COMPANIES HAVE UNDERGONE SINCE THE LAST RECESSION HAVE BEEN PAYING OFF TOO LEANER COMPANIES ARE PRODUCING MORE WITH LESS FATTENING THEIR BOTTOM LINES EVEN THOUGH THE ECONOMY HAD BEEN GROWING ANEMICALLY AT LEAST UNTIL THE END OF LAST YEAR EVEN ONCE BELEAGUERED GENERAL MOTORS CORPORATION IS LOOKING RELATIVELY PROSPEROUS THESE DAYS YESTERDAY G. M.'S STOCK HIT AN ALL TIME HIGH OF FIFTY NINE DOLLARS AND FIFTY CENTS A SHARE ADJUSTED FOR SPLITS NOW MANY ECONOMISTS BELIEVE THE COMBINATION OF LOW RATES AND RESTRUCTURINGS IS POISED TO FUEL A POWERFUL RECOVERY AS THE ECONOMY GAINS MOMENTUM THEY SAY COMPANIES WILL SEE SALES AND REVENUES RISING PLUMPING UP PROFITS THOSE PROFITS IN TURN WILL BE THE LINCHPIN IN A FURTHER SUSTAINED CLIMB IN STOCK PRICES THE FUNDAMENTALS OF THE U. S. ECONOMY LOOK HEALTHIER THAN THEY HAVE IN YEARS SAYS ALAN SINAI CHIEF ECONOMIST AT LEHMAN BROTHERS INCORPORATED THE INVESTMENT BANKING UNIT OF AMERICAN EXPRESS COMPANY THE COMBINATION OF CORPORATE EFFICIENCIES AND RISING SALES WILL FUEL THE NEXT STAGE OF THE BULL MARKET THAT WILL GO ON FOR A LONG LONG TIME EVEN IF THE DOW DOES TAKE A SUDDEN NOSE DIVE IT WON'T BE A LASTING ONE HE AND OTHERS INSIST A MARKET CORRECTION WOULD GIVE ALL THE BEARS WHO HAVE BEEN ON THE SIDELINES FOR THE PAST FEW YEARS A CHANCE TO SAY I TOLD YOU SO THEY WOULD THEN PROBABLY MOVE INTO THE MARKET PROVIDING A FLOOR UNDER ANY DECLINE ECONOMISTS SAY QUOTE THERE'S THE MOOD AND THE MONEY OUT THERE TO BRING IN SIDELINE CASH IF THERE'S A CORRECTION QUOTE SAYS ALFRED GOLDMAN DIRECTOR OF MARKET ANALYSIS AT A. G. EDWARDS AND SONS IN SAINT LOUIS THE GREATEST DANGER TO THE ROSY STOCK MARKET OUTLOOK IS TOO MUCH OF A GOOD THING AN ECONOMY THAT GROWS AT A TORRID PACE IF THAT HAPPENS THE FEDERAL RESERVE WOULD ALMOST CERTAINLY CLAMP DOWN ON THE NATION'S MONEY SUPPLY TO HEAD OFF INFLATION LESS LIKELY BUT EQUALLY DANGEROUS IS A SLUMPING ECONOMY THAT SLIPS BACK TOWARD RECESSION BURDENED BY HIGHER TAXES OR DECLINING CONSUMER CONFIDENCE WHAT INVESTORS ARE HOPING FOR IS A GOLDILOCKS ECONOMY NOT TOO STRONG AND NOT TOO WEAK BUT JUST RIGHT IT'S A DELICATE BALANCING ACT BUT THE ECONOMY SEEMS TO BE DOING A GOOD JOB OF WALKING THAT FINE LINE SAYS MR. SOHN OF NORWEST THE RALLY IN THE DOW INDUSTRIALS SINCE THE BEGINNING OF THE YEAR IS BEING DRIVEN BY TWO THINGS EXPECTATIONS OF STRONG FOURTH QUARTER PROFITS IN COMING WEEKS AND RAPIDLY RECEDING WORRIES THAT THE FED WILL BEGIN FORCING INTEREST RATES HIGHER ANALYSTS PEG ECONOMIC GROWTH IN THE JUST ENDED QUARTER AT FOUR POINT TWO PERCENT THE FASTEST SINCE THE FOURTH QUARTER OF NINETEEN NINETY TWO ACCORDING TO BLUE CHIP ECONOMIC INDICATORS A SEDONA ARIZONA NEWSLETTER THAT TRACKS ECONOMIC FORECASTS THE NATION'S AUTO MAKERS FOR INSTANCE ENJOYED HEALTHY SALES AS NINETEEN NINETY THREE DREW TO A CLOSE ANALYSTS EXPECT G. M. FORD MOTOR COMPANY AND CHRYSLER CORPORATION TO POST ROBUST GAINS FOR THE PERIOD AND THEIR STOCK PRICES HAVE REFLECTED THOSE EXPECTATIONS THE AUTO MAKERS' PROSPERITY HAS ALREADY HAD A RIPPLE EFFECT THE STEELMAKERS THAT FURNISH THE RAW MATERIALS FOR CARS AND THE RAILROADS THAT HAUL THE FINISHED AUTOS FROM FACTORIES TO MARKETS ARE BOTH EXPECTED TO PROFIT U. S. X. U. S. STEEL GROUP A MAJOR STEELMAKER HAS SEEN ITS STOCK PRICE GAIN NEARLY TWENTY PERCENT IN THE PAST THREE MONTHS AND C. S. X. CORPORATION A RAILROAD THAT CARRIES HUNDREDS OF THOUSANDS OF G. M. CARS HAS GAINED ELEVEN PERCENT IN THE SAME PERIOD FEW ECONOMISTS EXPECT GROWTH TO CONTINUE AT THE VIGOROUS RATE OF LATE NINETEEN NINETY THREE NOR DO THEY WANT IT TO THE SPURT OF GROWTH LAST QUARTER HAD SPARKED FEARS THAT THE INFLATION BOGEYMAN WAS ABOUT TO EMERGE AFTER YEARS OF HIBERNATION ANXIOUS BOND INVESTORS WHO FEAR NOTHING AS MUCH AS THEY DO INFLATION BEGAN DEMANDING HIGHER AND HIGHER INTEREST RATES TO OFFSET EXPECTED INFLATION NOW THOSE FEARS ARE SUBSIDING AND INTEREST RATES ARE RETURNING TO THEIR PREVIOUS LEVELS PEOPLE GOT CARRIED AWAY WITH INFLATION EXPECTATIONS IN THE LAST FEW MONTHS SAYS ABBY JOSEPH COHEN A STRATEGIST AT GOLDMAN SACHS AND COMPANY ON THE BASIS OF A ROBUST FOURTH QUARTER PEOPLE WERE EXTRAPOLATING STRONG GROWTH THIS YEAR AND RAISING UNWARRANTED FEARS ABOUT INFLATION SURPRISINGLY ENOUGH LONG TIME BEARS MOST OF WHOM HAVE BADLY LAGGED THE PERFORMANCE OF THEIR MORE OPTIMISTIC COLLEAGUES AREN'T DISCOURAGED BY THE MARKET'S RECENT RUN TO NEW RECORDS THEY JUST ARGUE THAT THE MARKET IS THAT MUCH CLOSER NOW TO THE INEVITABLE FALL THAT THEY HAVE BEEN PREDICTING FOR YEARS IT'S A COMPULSIVE GAMBLING MANIA OUT THERE SAYS CHARLES A. ALLMON A MONEY MANAGER AND VETERAN BEAR WITH MORE THAN SEVENTY PERCENT OF HIS PORTFOLIO IN CASH THE GAMBLING REHABILITATION CENTERS WILL HAVE A LOT OF CANDIDATES IN THE END THE CRUX OF THE BEAR CASE HAS BEEN THAT STOCK PRICES HAVE GOTTEN FAR AHEAD OF CORPORATE AND ECONOMIC FUNDAMENTALS THE BEARS' FAVORITE ARGUMENTS ARE THAT STOCK PRICES AVERAGING TWENTY FOUR TIMES PER SHARE EARNINGS ARE DANGEROUSLY HIGH AND THAT THE AMOUNT OF MONEY A STOCKHOLDER EARNS FROM CORPORATE DIVIDENDS TWO POINT SEVEN PERCENT AT CURRENT RATES IS DANGEROUSLY LOW THE PESSIMISTS ARGUE THAT THOSE INDICATORS ALWAYS RETURN TO THEIR HISTORIC AVERAGES STOCK PRICES AT ABOUT FOURTEEN TIMES EARNINGS AND A DIVIDEND YIELD OF ABOUT FOUR POINT FOUR PERCENT ACCORDING TO FINANCIAL SERVICES FIRM BIRINYI ASSOCIATES EITHER THROUGH RISING EARNINGS AND DIVIDENDS OR THROUGH FALLING PRICES CLEARLY THE BEARS ARE BETTING ON A FALL BACKING UP THAT ARGUMENT ALAN NEWMAN AN ANALYST AT H. D. BROUS AND COMPANY AND ONE OF THE GRIZZLIEST OF BEARS NOTES THAT INVESTORS ARE NOW RUSHING TO OWN STOCKS OF BIG BLUE CHIP COMPANIES THE FLIGHT TO BIG STOCKS IS A SIGN THAT INSTITUTIONAL INVESTORS PARTICULARLY MUTUAL FUNDS ARE PREPARING FOR THE WORST HE CONTENDS THOSE ARE THE STOCKS THAT ARE EASIEST TO SELL WHEN PANIC SETS IN QUOTE WE HEAR TAPS PLAYING LOUD AND CLEAR QUOTE HE SAYS TO BE SURE THE BEARS HAVE BEEN DEAD RIGHT REGARDING SOME SECTORS OF THE STOCK MARKET IN NINETEEN NINETY THREE ANYONE HOLDING TOBACCO OR PHARMACEUTICAL STOCKS TOOK A SOUND THUMPING THOSE SECTORS FINISHED THE YEAR DOWN TWENTY SIX PERCENT AND ELEVEN PERCENT RESPECTIVELY THAT PATTERN HAS REPEATED ITSELF IN OTHER SECTORS WHILE THE MARKET ITSELF HASN'T PLUNGED INTO ANY WHOLESALE DECLINES IT HAS BEEN UNDERGOING WHAT SOME ANALYSTS CALL ROLLING CORRECTIONS FOR THE PAST FEW YEARS ONCE A SECTOR HAS BEEN THRASHED BY HEAVY SELLING THE SAGGING STOCK PRICES LURE THE INEVITABLE BOTTOM FISHERS INVESTORS HELLBENT ON FINDING BARGAINS THEIR BUYING AT LEAST UNTIL NOW HAS STOPPED THE SECTOR'S SLIDE AND PROVIDED A CUSHION TO PROTECT THE OVERALL MARKET ONE OF THOSE BOTTOM FISHERS IS KENT SIMONS CO MANAGER OF NEUBERGER AND BERMAN'S SELECTED SECTORS FUND FOR WELL OVER A YEAR STOCKS AND STOCK GROUPS HAVE CORRECTED INDEPENDENT OF THE MARKET AND WE DON'T HAVE ANY PROBLEM FINDING STOCKS WE THINK ARE ATTRACTIVE HE SAYS THE MARKET IS LIKE THE WEATHER IF YOU DON'T LIKE THE PRICES THIS WEEK WAIT A WEEK OVERALL THOUGH THE MAJORITY OF INVESTORS EXPECT A ROBUST YEAR OF PROFIT GROWTH AND DIVIDEND INCREASES IN NINETEEN NINETY FOUR INVESTMENT PROFESSIONALS POINT TO SOME ENCOURAGING TRENDS THE NUMBER OF COMPANIES BOOSTING THEIR DIVIDENDS IN NINETEEN NINETY THREE WAS THE HIGHEST SINCE NINETEEN EIGHTY NINE ACCORDING TO STANDARD AND POOR'S CORPORATION AND THE NUMBER OF COMPANIES INCREASING THEIR PAYOUTS WAS TWENTY THREE PERCENT HIGHER THAN IN NINETEEN NINETY TWO EVEN IF STOCK PRICES RISE FAST ENOUGH TO KEEP THE DIVIDEND YIELD BELOW THE PSYCHOLOGICALLY IMPORTANT THREE PERCENT THRESHOLD ANALYSTS AREN'T WORRIED THE YIELD HAS BEEN UNDER THREE PERCENT FOR TWO YEARS NOW AND STOCK PRICES JUST KEEP GOING UP POINTS OUT A. G. EDWARDS'S MR. GOLDMAN EARNINGS HAVE BEEN RISING AT A DOUBLE DIGIT PACE FOR THE PAST TWO YEARS AND MANY ANALYSTS EXPECT THAT RATE TO ACCELERATE THIS YEAR ACCORDING TO I SLASH B. SLASH E. SLASH S. A FIRM THAT TRACKS ANALYSTS' EARNINGS ESTIMATES NINETEEN NINETY FOUR PROFITS FOR THE COMPANIES INCLUDED IN S. AND P'S FIVE HUNDRED STOCK INDEX SHOULD CLIMB ABOUT EIGHTEEN PERCENT FROM NINETEEN NINETY THREE LEVELS CASH THE CRITICAL FUEL THAT DRIVES STOCK PRICES HIGHER APPEARS TO BE IN AMPLE SUPPLY CASH LEVELS AT STOCK MUTUAL FUNDS IN NOVEMBER THE LATEST AVAILABLE DATA TOTALED FIFTY EIGHT POINT FIVE BILLION DOLLARS DOWN A LITTLE FROM OCTOBER LEVELS BUT CONSIDERABLY LARGER THAN THE FORTY THREE POINT FOUR BILLION DOLLARS ON HAND A YEAR EARLIER ACCORDING TO INVESTMENT COMPANY INSTITUTE A MUTUAL FUND TRADE GROUP MONEY MAY BE COMING HOME THIS YEAR TOO IF NINETEEN NINETY THREE WAS THE YEAR THAT AMERICAN INVESTORS DISCOVERED THE HUGE PROFIT POTENTIAL IN FOREIGN MARKETS THEY BOUGHT A RECORD AMOUNT OF FOREIGN STOCKS MOSTLY VIA MUTUAL FUNDS LAST YEAR NINETEEN NINETY FOUR MAY BE THE YEAR THEY LEARN THE HARD LESSON OF VOLATILITY ALREADY THIS YEAR THE HONG KONG MALAYSIAN AND MEXICAN STOCK MARKETS HAVE GIVEN INVESTORS THOROUGH ALBEIT SHORT LIVED BEATINGS SOME ANALYSTS FIGURE THAT GETTING ROUGHED UP OVERSEAS MAY PERSUADE SOME OF THE LESS ADVENTUROUS INVESTORS TO COME BACK TO THE RELATIVE STABILITY OF THE U. S. MARKET QUOTE THERE'S LESS ENTHUSIASM FOR THE IDEA THAT FOREIGN STOCKS ARE THE PLACE FOR MONEY MANAGERS TO PUT THEIR NEW MONEY QUOTE SAYS RICHARD HOEY CHIEF ECONOMIST AND A PORTFOLIO MANAGER AT DREYFUS CORPORATION IN PART THAT'S WHAT IS BOLSTERING OUR MARKET MR. HOEY SAYS HE RECENTLY CUT BACK HOLDINGS OF MALAYSIAN PHILIPPINE AND SINGAPORE STOCKS AND PUT THE MONEY TO WORK HERE INSTEAD FINALLY THERE IS THE PRICKLY MATTER OF INVESTOR PSYCHOLOGY IN THE SOMETIMES PARADOXICAL WORLD OF THE STOCK MARKET A GOODLY DOLLOP OF BEARISH SENTIMENT IS OFTEN A BULLISH SIGN THAT IS BECAUSE PESSIMISTS HAVE BEEN HOARDING THEIR CASH EVENTUALLY THE REASONING GOES THEY WILL BREAK DOWN AND BEGIN BUYING PUSHING PRICES UP DESPITE THE RECENT RUN TO RECORD LEVELS MR. GOLDMAN OF A. G. EDWARDS ESTIMATES THAT ROUGHLY HALF OF INVESTMENT ADVISERS ARE BEARISH IN THIRTY THREE YEARS OF STUDYING THE MARKETS HE SAYS I'VE NEVER SEEN A MARKET HIT A TOP WHEN HALF OF THE PUNDITS WERE BEARISH IN RECENT WEEKS ATTORNEY GENERAL JANET RENO HAS SAID REPEATEDLY THAT IT'S POINTLESS FOR HER TO NAME A SPECIAL COUNSEL TO INVESTIGATE MATTERS INVOLVING THE FAILED MADISON GUARANTY SAVINGS AND LOAN BECAUSE SHE WOULD BE THE PERSON APPOINTING SUCH A LAWYER SHE HAS EXPLAINED SHE STILL WOULD BE RELATED TO THE INVESTIGATION AND IT WOULD BE QUESTIONED ON THAT ACCOUNT ONLY AN INDEPENDENT COUNSEL STATUTE WHICH SHE HAS STRONGLY SUPPORTED COULD ELIMINATE THIS PROBLEM SHE SAYS SINCE UNDER SUCH A LAW A SPECIAL COURT WOULD SELECT THE COUNSEL BUT BECAUSE THERE IS NO SUCH LAW SHE WILL KEEP TO HERSELF THE MADISON CASE WITH LAWYERS AT THE MAIN JUSTICE DEPARTMENT THE BUILDING AT TENTH AND CONSTITUTION IN WASHINGTON HANDLING IT AND REPORTING TO HER MS. RENO MADE BASICALLY THE SAME ARGUMENT IN EXPLAINING WHY THE PROBE OF COMMERCE SECRETARY RON BROWN WAS NOT HANDED OFF TO A SPECIAL COUNSEL BUT KEPT WITHIN MAIN JUSTICE FOR MS. RENO APPARENTLY IT'S EITHER THE INDEPENDENT COUNSEL OF THE INDEPENDENT COUNSEL LAW OR MAIN JUSTICE WITH HERSELF IN CHARGE THERE IS NO QUOTE THIRD WAY QUOTE FOR HANDLING EXCEPTIONAL CASES THOSE IN WHICH TOP EXECUTIVE OFFICERS ARE ACCUSED OF CRIMINAL WRONGDOING OR IN WHICH AN INVESTIGATION OF FRIENDS OR RELATIVES OF TOP OFFICERS MIGHT RESULT IN A CONFLICT OF INTEREST MS. RENO'S POSITION ON HOW TO HANDLE EXCEPTIONAL CASES IS ECCENTRIC TO SAY THE LEAST SHE IS THE FIRST ATTORNEY GENERAL SINCE BEFORE WATERGATE TO SAY IN EFFECT THAT EXCEPTIONAL CASES SHOULD BE HANDLED WITHIN MAIN JUSTICE AND NO PLACE ELSE MORE IMPORTANT HER POSITION IS UNPERSUASIVE FIRST IT'S ILLOGICAL TO SAY THE PUBLIC SHOULD TRUST HER TO HANDLE THE CASE BUT NOT TO MAKE A GOOD CHOICE OF SOMEONE TO TAKE IT OVER SECOND IT'S NOT NECESSARILY POINTLESS TO HANDLE A CASE LIKE THE MADISON PROBE BY PUTTING IT OUTSIDE MAIN JUSTICE IN NINETEEN SEVENTY NINE JIMMY CARTER'S FIRST ATTORNEY GENERAL GRIFFIN BELL FOUND HIMSELF IN A SITUATION SIMILAR TO MS. RENO'S JUSTICE WAS INVESTIGATING ALLEGATIONS THAT THE PRESIDENT'S FAMILY PEANUT BUSINESS HAD RECEIVED QUESTIONABLE LOANS FROM THE NATIONAL BANK OF GEORGIA OPERATED BY MR. CARTER'S FRIEND BERT LANCE AND THAT SOME OF THE LOAN MONEY HAD BEEN ILLEGALLY DIVERTED INTO HIS NINETEEN SEVENTY SIX PRESIDENTIAL CAMPAIGN MR. BELL'S JUSTICE DEPARTMENT DECIDED THAT THE NEWLY PASSED INDEPENDENT COUNSEL LAW DID NOT REACH ALLEGATIONS MADE BEFORE ITS ENACTMENT MR. BELL DID NOT INSIST ON KEEPING THE CASE WITHIN MAIN JUSTICE BUT NAMED NEW YORK LAWYER PAUL CURRAN AS SPECIAL COUNSEL TO CONDUCT THE INVESTIGATION ULTIMATELY GIVING HIM THE FULL POWERS PREVIOUSLY GRANTED TO ARCHIBALD COX AND LEON JAWORSKI THE WATERGATE SPECIAL PROSECUTORS BOTH APPOINTED BY THE ATTORNEY GENERAL LASTING ALMOST EIGHT MONTHS AND FINDING NO GROUNDS FOR PROSECUTION MR. CURRAN'S INVESTIGATION WAS WIDELY REGARDED AS THOROUGH AND IN THE WORDS OF THE WASHINGTON POST ENTIRELY PERSUASIVE HERE IS EVIDENCE THAT AN OUTSIDE LAWYER CHOSEN BY THE ATTORNEY GENERAL CAN DO A GOOD JOB OF HANDLING THE EXCEPTIONAL CASE A CURRAN STYLE APPOINTMENT IS BUT ONE OF SEVERAL KINDS OF SPECIAL COUNSEL ARRANGEMENTS USED IN THE RECENT PAST THAT ARE AVAILABLE TO MS. RENO NOR IS A SPECIAL COUNSEL OPTION THE ONLY ALTERNATIVE SHE HAS WHEN THE U. S. ATTORNEY IN DENVER RECUSED HIMSELF IN NINETEEN NINETY FROM THE FRAUD INVESTIGATION OF THE SILVERADO THRIFT A CASE INVOLVING THE PRESIDENT'S SON NEIL BUSH THEN ATTORNEY GENERAL RICHARD THORNBURGH HAD THE CASE FORWARDED TO THE U. S. ATTORNEY IN DALLAS MARVIN COLLINS THE MOST EXPERIENCED BANK FRAUD PROSECUTOR AVAILABLE HIS WORK ON THE CASE HAS BEEN WIDELY ACCEPTED BY TAKING THEIR RESPECTIVE CASES OUTSIDE MAIN JUSTICE MR. BELL AND MR. THORNBURGH MANAGED TO ALLAY CONCERNS THAT POLITICAL APPOINTEES IN WASHINGTON MIGHT SOMEHOW MANIPULATE THE INVESTIGATIVE PROCESS MS. RENO HAS NOT LACKED FOR OPPORTUNITY TO PUT THE MADISON CASE WHERE IT PROBABLY BELONGS LAST OCTOBER THE RESOLUTION TRUST CORPORATION HAVING INTENSIFIED ITS INVESTIGATION OF POSSIBLE BANK FRAUD SENT AN EXPANDED REFERRAL TO THE CLINTON APPOINTED U. S. ATTORNEY IN LITTLE ROCK PAULA CASEY THE CLINTONS WERE NAMED IN THE REFERRAL HOW IS UNCLEAR BUT MS. CASEY A LAW STUDENT OF BILL CLINTON'S AT THE UNIVERSITY OF ARKANSAS AND A NINETEEN NINETY TWO CAMPAIGN VOLUNTEER DECLINED TO PURSUE THE RECOMMENDED INVESTIGATION LATER SHE RECUSED HERSELF SOMETHING SHE SHOULD HAVE DONE EARLIER THERE WAS A NEED TO ENSURE THAT THERE BE NO MISPERCEPTIONS ABOUT THE IMPARTIALITY OF THE INVESTIGATION ACCORDING TO THE DEPARTMENT'S PRESS RELEASE MS. RENO COULD HAVE ADHERED TO DEPARTMENT POLICY AND REASSIGNED THE CASE TO ANOTHER U. S. ATTORNEY AS MR. THORNBURGH HAD DONE IN THE SILVERADO CASE INSTEAD SHE PULLED THE CASE INTO MAIN JUSTICE AS IT HAPPENS THERE IS A LAW ENFORCEMENT THEORY UNDER WHICH MS. RENO'S INSISTENCE ON KEEPING THE CASE INSIDE HER OWN BUILDING MIGHT MAKE SENSE ASSUME THAT THE WHITE HOUSE SPINMASTERS ARE WRONG THAT THERE ARE SPECIFIC CREDIBLE ALLEGATIONS OF WRONGDOING ON THE PART OF THE CLINTONS AND MS. RENO KNOWS WHAT THEY ARE GIVEN HER BELIEF THAT AN INDEPENDENT COUNSEL BILL IS SOON TO BECOME LAW IT WOULD MAKE SENSE FOR HER TO TREAT SUCH ALLEGATIONS AS IF THE INDEPENDENT COUNSEL LAW HAD ALREADY BEEN PASSED UNDER THE LAW SPECIFIC CREDIBLE ALLEGATIONS TRIGGER WHAT IS CALLED A PRELIMINARY INVESTIGATION HANDLED BY THE CRIMINAL DIVISION SUCH AN INQUIRY MAY LEAD TO A COURT APPOINTED COUNSEL ON THIS THEORY MS. RENO COULD BE RUNNING A DE FACTO PRELIMINARY INVESTIGATION IN ANTICIPATION OF A NEW LAW AGAIN THIS THEORY ASSUMES A CERTAIN SET OF FACTS AS MATTERS NOW STAND MS. RENO'S INSISTENCE ON KEEPING THE CASE WITHIN MAIN JUSTICE IS ONLY CREATING POLITICAL PRESSURE FOR HER TO DISPOSE OF IT IN PERHAPS THE WORST WAY BY HANDING IT OFF TO AN INDEPENDENT COUNSEL ONCE THE INDEPENDENT COUNSEL LAW IS PASSED ON ANOTHER BASIS THE NEW LAW LIKE THE PREVIOUS ONE WILL INCLUDE A PROVISION WHEREBY THE ATTORNEY GENERAL MAY SEEK A COURT APPOINTED COUNSEL WHEN AN INVESTIGATION OF CRIMINAL CHARGES COULD RESULT IN A PERSONAL FINANCIAL OR POLITICAL CONFLICT OF INTEREST FOR THE ATTORNEY GENERAL OR OTHER JUSTICE OFFICERS THE INDEPENDENT COUNSEL LAW HAS NOT BEFORE BEEN USED IN CASES OF CONFLICTS INVOLVING THE PRESIDENT AND WERE MS. RENO TO EMPLOY IT HERE SHE WOULD CREATE A PRECEDENT THAT IN SIMILAR CIRCUMSTANCES COULD LEAD TO THE APPOINTMENT OF OTHER INDEPENDENT COUNSELS FOR THIS PRESIDENT AND FUTURE ONES THIS WOULD CERTAINLY BE ONE WAY FOR MS. RENO TO GET RID OF HER MADISON PROBLEM BUT IT WOULD NOT BE REQUIRED BY THE LAW AND IT WOULD HARDLY SERVE THE BEST INTERESTS OF THE PRESIDENCY OR THE COUNTRY MR. EASTLAND IS EDITOR OF FORBES MEDIACRITIC AND A FELLOW AT THE ETHICS AND PUBLIC POLICY CENTER IN WASHINGTON MUNICIPAL ISSUERS FOUND RELATIVELY STRONG DEMAND FOR MORE THAN TWO BILLION DOLLARS OF NEW BONDS YESTERDAY THE FIRST FLOOD OF NEW SUPPLY OF THE YEAR BUT WHILE DEMAND WAS STRONG MARKET PLAYERS AND ANALYSTS WERE RELUCTANT TO PROCLAIM THE START OF THE GREAT MUNICIPAL BOND MARKET RALLY OF NINETEEN NINETY FOUR WHICH MANY OF THEM HAVE BEEN PREDICTING FOR MONTHS THE YIELDS FOR A NUMBER OF MUNICIPAL BOND OFFERINGS WERE CUT YESTERDAY A SIGN OF GOOD DEMAND BUT IT APPEARS THAT THE YIELD CUTTING WAS MORE THE RESULT OF CAUTIOUS UNDERWRITERS TESTING THE WATERS OF A NEW YEAR RATHER THAN EXTREMELY STRONG INTEREST IN NEW MUNICIPAL BONDS IN THE SECONDARY MARKET PRICES WERE LITTLE CHANGED YESTERDAY CHICAGO'S FIVE POINT SEVEN FIVE PERCENT COUPON BONDS MATURING IN TWO THOUSAND TWENTY THREE ROSE ONE QUARTER POINT TO ONE HUNDRED TO YIELD FIVE POINT SEVEN FIVE PERCENT MEANWHILE TREASURY SECURITIES ROSE MODESTLY WITH THE TEN YEAR NOTE POSTING A GAIN OF LESS THAN ONE QUARTER POINT OR LESS THAN TWO DOLLARS AND FIFTY CENTS FOR A BOND WITH ONE THOUSAND DOLLAR FACE VALUE TO ONE HUNDRED AND TWENTY NINE THIRTY SECONDS TO YIELD FIVE POINT SIX ONE PERCENT COMPARED WITH FIVE POINT SIX THREE PERCENT ON MONDAY THE THIRTY YEAR BOND ROSE LESS THAN ONE EIGHTH POINT TO ONE HUNDRED AND THREE THIRTY SECONDS TO YIELD SIX POINT TWO THREE PERCENT MANY MUNICIPAL BOND MARKET ANALYSTS HAD PREDICTED THAT THIS YEAR WOULD BE A BOOM YEAR FOR TAX EXEMPT MUNI BONDS BECAUSE OF AN EXPECTED DROP IN ISSUANCE AND HIGHER INCOME TAXES FOR MANY AMERICANS THE PUBLIC SECURITIES ASSOCIATION A TRADE GROUP HAS ESTIMATED THAT TOTAL ISSUANCE WOULD DROP TO ABOUT ONE HUNDRED SEVENTY NINE BILLION DOLLARS THIS YEAR COMPARED WITH NEARLY TWO HUNDRED NINETY BILLION DOLLARS LAST YEAR MUCH OF THAT DROP WILL COME AS A RESULT OF REDUCED REFUNDINGS WHERE MUNICIPALITIES ISSUE NEW LOWER YIELDING BONDS TO REPLACE HIGHER YIELDING BONDS THE PUBLIC SECURITIES ASSOCIATION FOR EXAMPLE PROJECTS REFUNDINGS WILL TUMBLE TO SIXTY EIGHT POINT NINE BILLION DOLLARS FROM LAST YEAR'S RECORD ONE HUNDRED NINETY BILLION DOLLARS THAT IS LIKELY TO BE THE CASE FOR NINETEEN NINETY FOUR UNLESS OF COURSE THERE IS ANOTHER DIP IN INTEREST RATES WHICH FEW ANALYSTS ARE PREDICTING BUT NOT EVERYONE IS PREDICTING A LEAN YEAR AS FAR AS NEW MUNI BOND ISSUES M. B. I. A. INCORPORATED A LEADING MUNI INSURER SAID IT EXPECTS NINETEEN NINETY FOUR TO BE ANOTHER BIG ISSUANCE YEAR BASED ON A NATIONWIDE SURVEY IT COMMISSIONED THE SURVEY OF EIGHT HUNDRED THIRTY STATE AND LOCAL GOVERNMENT FINANCE DIRECTORS SUGGESTS THAT TWO HUNDRED FORTY BILLION DOLLARS WORTH OF MUNICIPAL DEBT COULD COME TO MARKET IN NINETEEN NINETY FOUR BELOW THE NINETEEN NINETY THREE LEVEL BUT FAR ABOVE THE PUBLIC SECURITIES ASSOCIATION'S ESTIMATE MOST OF THE NEW ISSUES SOLD YESTERDAY APPEAR TO HAVE BEEN WELL RECEIVED BY INVESTORS AMONG THE DAY'S BIGGEST REFUNDING ISSUES WAS THREE HUNDRED EIGHTY POINT FIVE MILLION DOLLARS OF MORTGAGE REVENUE BONDS FROM NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY AND THREE HUNDRED SIXTY TWO MILLION DOLLARS OF VARIOUS OHIO BUILDING AUTHORITY BONDS LATE YESTERDAY YIELDS FOR THE NEW YORK STATE OFFERING WERE LOWERED BY ZERO POINT ZERO TWO TO ZERO POINT ZERO FIVE PERCENTAGE POINT DUE TO STRONG DEMAND FOLLOWING THE CUT YIELDS RANGED FROM TWO POINT TWO FIVE PERCENT FOR BILLS MATURING IN AUGUST NINETEEN NINETY FOUR TO FIVE POINT FIVE THREE PERCENT FOR BONDS MATURING IN TWO THOUSAND TWENTY FOUR THE BONDS WHICH WERE SOLD BY A GROUP OF UNDERWRITERS LED BY J. P. MORGAN SECURITIES INCORPORATED WERE RATED DOUBLE A BY MOODY'S INVESTORS SERVICE INCORPORATED AND TRIPLE A BY STANDARD AND POOR'S CORPORATION OTHER NEW OFFERINGS ALSO SAW THEIR YIELDS CUT INCLUDING REEDY CREEK IMPROVEMENT DISTRICT FLORIDA'S TWO HUNDRED NINETEEN MILLION DOLLARS UTILITIES REVENUE IMPROVEMENT AND REFUNDING BONDS AND ALBUQUERQUE N. M.'S ONE HUNDRED TWELVE POINT TWO MILLION DOLLARS JOINT WATER AND SEWER SYSTEM REVENUE AND REFUNDING BONDS QUOTE THIS IS THE FIRST REAL TEST WE'VE HAD AS FAR AS NEW ISSUES THIS YEAR QUOTE SAID PETER WOLL A MARKET ANALYST AT MUNICIPAL MARKET DATA A UNIT OF THOMSON FINANCIAL SERVICES THE IMPRESSION I WAS GETTING WAS THAT THERE WAS A LOT OF NOISE IN THE MUNICIPAL BOND MARKET YESTERDAY BUT NOT A LOT OF ACTION IN TERMS OF PRICES RISING SAID MR. WOLL THERE CERTAINLY WASN'T ANY SCRAMBLE OR FEEDING FRENZY BECAUSE THE MARKET WAS TRYING TO ABSORB ALL THE VOLUME HE ADDED THIS IS STILL A HANGOVER FROM DEALS THAT DIDN'T GET DONE LAST YEAR SAYS GEORGE FRIEDLANDER MANAGING DIRECTOR AND FIXED INCOME STRATEGIST AT SMITH BARNEY SHEARSON NOT THAT MANY NEW MONEY DEALS ARE AROUND WHICH IS TYPICAL IN MOST EARLY JANUARYS SO I'M NOT SURPRISED ISSUERS TARGETED THIS PERIOD TO TAKE ADVANTAGE OF AN OTHERWISE QUIET MARKET TREASURY NOTES AND BONDS SHOWED MODERATE PRICE GAINS AS INVESTORS AWAITED KEY INFLATION FIGURES BY THE TIME U. S. TRADING BEGAN YESTERDAY PRICES HAD DIPPED IN OVERNIGHT TRADING AND RECOVERED TREASURYS THEN STUMBLED TWICE MORE BOUNCING BACK EACH TIME THE MARKET WAS IN A BUY THE DIP MODE SAID TONY CRESCENZI HEAD OF FIXED INCOME AT MILLER TABAK HIRSCH AND COMPANY A RUSH OF BUYING RELATED TO MUNICIPAL DEFEASANCE WAS A MAJOR FORCE IN PROPPING UP THE MARKET ESPECIALLY FIVE TO SEVEN YEAR MATURITIES WHICH WERE AMONG THE BEST PERFORMERS AS PART OF A DEFEASANCE PROGRAM A STATE OR LOCAL GOVERNMENT ISSUES NEW SECURITIES TO REFUND OLDER HIGHER YIELD DEBT UNTIL THE OUTSTANDING SECURITIES CAN BE CALLED PROCEEDS FROM THE ISSUANCE ARE INVESTED IN TREASURY ISSUES TRADERS ALSO REACTED TO A NEW YORK TIMES REPORT THAT RESEARCHERS AT THE BUREAU OF LABOR STATISTICS BELIEVE THE CONSUMER PRICE INDEX HAS BEEN OVERSTATING THE INFLATION RATE QUOTE IT'S A CONCEPT THAT GETS KICKED AROUND AND SURFACES EVERY SIX MONTHS OR SO QUOTE SAID DOUG SCHINDEWOLF A MONEY MARKET ECONOMIST AT SMITH BARNEY SHEARSON INCORPORATED EVERY ECONOMIC SURVEY HAS ITS FLAWS AND I DON'T KNOW THAT THE PROBLEMS WITH THE C. P. I. ARE ANY WORSE HE ADDED MEANWHILE TRADERS WERE BETTING THAT THIS WEEK'S INFLATION NEWS WILL BE SUPPORTIVE FOR THE BOND MARKET ANALYSTS BELIEVE TODAY'S LABOR DEPARTMENT REPORT WILL SHOW THAT THE PRODUCER PRICE INDEX FELL ZERO POINT ONE PERCENT IN DECEMBER LED BY FALLING ENERGY PRICES TOMORROW'S REPORT ON THE DECEMBER CONSUMER PRICE INDEX ALSO IS EXPECTED TO PROVIDE GOOD NEWS FOR BONDS A MODERATE ZERO POINT TWO PERCENT RISE THE BOND MARKET WAS BLINDSIDED AT MIDAFTERNOON BY A REPORT SHOWING MUCH STRONGER THAN EXPECTED RETAIL SALES IN EARLY JANUARY THE JOHNSON REDBOOK SERVICE REPORTED CHAIN AND DEPARTMENT STORE SALES SURGED FIVE PERCENT DURING THE FIRST WEEK OF THE NEW YEAR TRADERS QUICKLY TOOK PRICES LOWER IN RESPONSE BUT THE DECLINES PROVED SHORT LIVED AND THE MARKET REBOUNDED THE TREASURY DEPARTMENT MEANTIME ANNOUNCED PLANS TO REDEEM ITS EIGHT AND ONE HALF PERCENT TWENTY FIVE YEAR BOND ISSUE DUE MAY FIFTEENTH NINETEEN NINETY NINE PRIVATE INVESTORS HOLD NINE HUNDRED SIXTY ONE MILLION DOLLARS OF THE BONDS NEW ISSUES DOMINATED THE ACTIVITY WITH MORE THAN THREE BILLION DOLLARS OF DEBT PRICED FROM CORPORATE AND GOVERNMENT AGENCIES ISSUERS INCLUDED SEARS ROEBUCK AND COMPANY SYSTEM ENERGY RESOURCES INCORPORATED WACHOVIA CORPORATION FIRST U. S. A. BANK AND THE PROVINCE OF MANITOBA TRADING IN THE INVESTMENT GRADE MARKET WAS MODERATE WITH MANY BONDS POSTING MODERATE GAINS JUNK BOND PRICES ROSE ABOUT ONE HALF POINT THE BONDS OF WESTINGHOUSE ELECTRIC CORPORATION REACTED POSITIVELY TO NEWS OF A RESTRUCTURING PLAN THAT INCLUDES WRITEDOWNS LAYOFFS AND A SEVEN HUNDRED FIFTY MILLION DOLLAR PRETAX OR FIVE HUNDRED MILLION DOLLAR AFTER TAX CHARGE TO ITS FOURTH QUARTER EARNINGS THE COMPANY'S EIGHT AND FIVE EIGHTHS PERCENT COUPON DEBENTURES MATURING IN TWO THOUSAND TWELVE ROSE ONE POINT OR TEN DOLLARS FOR A BOND WITH A ONE THOUSAND DOLLAR FACE VALUE TO ONE HUNDRED FOUR THE YIELD DROPPED TO EIGHT POINT TWO PERCENT FROM EIGHT POINT THREE PERCENT SEARS ROEBUCK'S THREE HUNDRED MILLION DOLLAR ISSUE OF TEN YEAR NOTES WAS PRICED AT NINETY NINE POINT FIVE SEVEN THREE TO YIELD SIX POINT THREE OH EIGHT PERCENT RATED B. A A ONE BY MOODY'S AND TRIPLEB PLUS BY S. AND P. THE ISSUE WAS LEAD MANAGED BY MORGAN STANLEY AND COMPANY FIRST U. S. A. BANK A UNIT OF FIRST U. S. A. INCORPORATED SOLD THREE HUNDRED FIFTY MILLION DOLLARS OF FIVE YEAR BANK NOTES PROCEEDS WILL BE USED TO FINANCE THE CREDIT CARD COMPANY'S RECENT GROWTH A COMPANY SPOKESMAN SAID FIRST U. S. A. BANK'S BUSINESS GREW BY MORE THAN SEVENTY PERCENT IN FISCAL YEAR NINETEEN NINETY THREE THE SPOKESMAN SAID ADDING THAT THE COMPANY EXPECTS TO OFFER MORE THAN ONE BILLION DOLLARS OF DEBT IN THE FUTURE FIRST U. S. A. BANK'S NONCALLABLE NOTES WERE PRICED AT NINETY NINE POINT FIVE SEVEN FOUR TO YIELD FIVE POINT EIGHT FIVE PERCENT THE ISSUE WAS RATED B. A A THREE BY MOODY'S AND TRIPLE B. MINUS BY S. AND P. MERRILL LYNCH AND COMPANY LEAD MANAGED THE OFFERING MERRILL ALSO LED A TWO HUNDRED FIFTY MILLION DOLLAR OFFERING OF FIFTEEN YEAR NONCALLABLE SUBORDINATED NOTES FOR WACHOVIA A UNIT OF FIRST WACHOVIA CORPORATION THE DEBT WAS PRICED AT NINETY NINE POINT EIGHT SEVEN TO YIELD SIX POINT THREE EIGHT PERCENT AND IS RATED SINGLE A ONE BY MOODY'S AND DOUBLE A MINUS BY S. AND P. MORTGAGE SECURITIES ROSE SLIGHTLY AFTER A FLURRY OF DEALS LAST WEEK ISSUANCE OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS HAS SLOWED NO REMICS WERE ANNOUNCED YESTERDAY REPORTEDLY BECAUSE DEALERS HAVEN'T SOLD WHAT THEY HAVE ON HAND INSTEAD BUSINESS WAS FUELED BY INVESTORS SEEKING THIRTY YEAR SIX POINT FIVE PERCENT FEDERAL HOME LOAN MORTGAGE CORPORATION AND FEDERAL NATIONAL MORTGAGE ASSOCIATION SECURITIES AND SEVEN PERCENT GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SECURITIES ALSO POPULAR WERE SECURITIES BACKED BY FANNIE MAE AND FREDDIE MAC SECURITIES WITH HIGHER COUPONS SAID ALLEN SIEGAL HEAD PASS THROUGH TRADER AT C. S. FIRST BOSTON THAT'S BECAUSE THEY ARE VIEWED AS CHEAPER THAN CURRENT COUPONS OR NEWLY ORIGINATED BONDS CARRYING COUPONS OF SIX AND ONE HALF PERCENT AND SEVEN PERCENT CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE POTASH CORPORATION OF SASKATCHEWAN SAID ITS U. S. SALES SUBSIDIARY HAS RECEIVED A GRAND JURY SUBPOENA FROM THE U. S. JUSTICE DEPARTMENT'S ANTITRUST DIVISION WHICH IS INVESTIGATING ALLEGATIONS OF POTASH PRICE FIXING SEVERAL U. S. POTASH PRODUCERS ALSO HAVE REPORTED RECEIVING GRAND JURY SUBPOENAS THEY INCLUDE I. M. C. FERTILIZER GROUP INCORPORATED NORTHBROOK ILLINOIS AND KALIUM CHEMICALS LIMITED A SUBSIDIARY OF VIGORO CORPORATION CHICAGO THE SASKATOON COMPANY SAID ITS SUBPOENA REQUESTED DOCUMENTS RELATING TO ITS NORTH AMERICAN POTASH BUSINESS THE COMPANY WHICH MINES RICH POTASH DEPOSITS IN SASKATCHEWAN DESCRIBES ITSELF AS THE WORLD'S LARGEST INVESTOR OWNED PRODUCER OF POTASH A WIDELY USED FERTILIZER THE ANTITRUST DIVISION'S INVESTIGATION INVOLVES ALLEGATIONS MADE IN PENDING CIVIL COMPLAINTS SEVERAL CLASS ACTION CIVIL SUITS FILED IN APRIL CLAIM ON BEHALF OF U. S. BUYERS OF POTASH THAT BUYERS' COSTS HAVE RISEN AS A RESULT OF PRICE FIXING BY PRODUCERS SINCE NINETEEN EIGHTY SEVEN THOSE SUITS WERE CONSOLIDATED IN FEDERAL DISTRICT COURT IN MINNESOTA AND DEFENDANTS INCLUDE MOST POTASH PRODUCERS IN THE U. S. AND CANADA POTASH CORPORATION SAID IT BELIEVES THE ALLEGATIONS TO BE WITHOUT MERIT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE S. E. C. AND OTHER REGULATORS BY THE TENTH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPEN MARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN TWO DOLLARS A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED C. B. CHAIRMAN P. PRESIDENT D. DIRECTOR V. P. VICE PRESIDENT O. OFFICER Z. OTHER MANVILLE CORPORATION'S SCHULLER INTERNATIONAL INCORPORATED UNIT SAID IT PLANS TO SPEND ONE HUNDRED MILLION DOLLARS TO EXPAND THE CAPACITY OF ITS FIBERGLASS INSULATION PLANTS SCHULLER SAID THE EXPANSIONS WHICH WILL INCREASE TOTAL PRODUCTION CAPACITY ABOUT TWENTY PERCENT COME IN RESPONSE TO STRONG INSULATION DEMAND AS HOUSING STARTS RISE AND HOME REMODELING SURGES THE COMPANY PLANS TO INCREASE CAPACITY AT PLANTS IN INNISFAIL ALBERTA WILLOWS CALIFORNIA AND RICHMOND INDIANA SCHULLER ALSO SAID IT PLANS A MAJOR EXPANSION IN EITHER MCPHERSON KANSAS OR WINDER GEORGIA MANVILLE IS BASED IN DENVER PETROCORP INCORPORATED SAID ITS DISCOVERY WELL SAGEBRUSH ONE FLOWED AT A RATE OF SIX HUNDRED FORTY EIGHT BARRELS OF OIL AND SIX HUNDRED FORTY FOUR THOUSAND CUBIC FEET OF NATURAL GAS A DAY ON A SIXTEEN SIXTY FOURTHS INCH CHOKE A SPOKESMAN FOR PETROCORP SAID THE WELL WILL BEGIN PRODUCING IN ABOUT THIRTY DAYS THE OIL AND NATURAL GAS COMPANY SAID IT OWNS A SEVENTY SEVEN POINT FIVE PERCENT WORKING INTEREST IN THE WELL ON THE UTE MOUNTAIN UTE INDIAN RESERVATION IN MONTEZUMA COUNTY IN SOUTHWESTERN COLORADO CLOSELY HELD ALLANTE OPERATING COMPANY OF DALLAS OWNS A TEN PERCENT WORKING INTEREST IN THE WELL AND AN UNIDENTIFIED CLOSELY HELD COMPANY OWNS THE REMAINING TWELVE POINT FIVE PERCENT LIVESTOCK FUTURES PRICES RALLIED ACROSS THE BOARD AS RETAILERS STOCKED UP ON RED MEAT AND BITTER WINTER WEATHER THREATENED THE DEVELOPMENT OF HOGS AND CATTLE IN THE MIDWEST AT THE CHICAGO MERCANTILE EXCHANGE HOGS FOR FEBRUARY DELIVERY WERE UP ZERO POINT EIGHT ZERO CENT TO FORTY SEVEN POINT ONE SEVEN CENTS A POUND THE PRICE OF THE ACTIVELY TRADED FEBRUARY PORK BELLY FUTURES CONTRACT LEAPED ONE POINT FIVE FIVE CENTS TO FIFTY SEVEN POINT NINE TWO CENTS A POUND AND FEBRUARY CATTLE ROSE ZERO POINT SIX ZERO CENT TO SEVENTY FOUR POINT TWO SEVEN CENTS A POUND THE RELATIVELY LOW LEVELS OF FUTURES PRICES HAVE TRANSLATED INTO RELATIVELY LOW PRICES ON THE WHOLESALE CASH MARKETS FOR BOTH PORK AND BEEF ANALYSTS SAID AS A RESULT RETAILERS HAVE BEEN STOCKING UP ON RED MEAT AND PROMOTING IT IN THEIR STORES QUOTE OVER THE HOLIDAYS RETAILER BUYING HAD GOTTEN TO HAND TO MOUTH LEVELS AND THEY HAD GOTTEN THEMSELVES A LITTLE SHORT BOUGHT QUOTE SAID CHARLES LEVITT SENIOR MEAT ANALYST FOR ALARON TRADING CORPORATION NOW WITH RETAILERS LOOKING AT LOW PRICES ON THE WHOLESALE MARKET AND FAIRLY BIG PROFIT MARGINS THEY'RE WILLING TO STOCK UP AND FEATURE MEAT A NUMBER OF OTHER FACTORS ALSO HAVE BEEN EXERTING UPWARD PRESSURE ON FUTURES PRICES ANALYSTS SAID ONE OF THEM IS THE DECLINING WEIGHT OF HOGS ON U. S. FARMS OVER THE PAST FEW WEEKS POSSIBLY BECAUSE OF HARSH EARLY WINTER WEATHER IN EARLY DECEMBER THE AVERAGE WEIGHT OF HOGS IN THE IOWA AND SOUTHERN MINNESOTA MARKETING REGION WAS AN UNUSUALLY HIGH TWO HUNDRED FIFTY TWO POUNDS A HEAD BUT COLD TEMPERATURES AND AGGRESSIVE MARKETING OF THE HEAVIEST HOGS BY FARMERS HAS THINNED OUT THE WEIGHT AS OF EARLY JANUARY THE AVERAGE WEIGHT OF HOGS IN THE SAME REGION HAD FALLEN TO TWO HUNDRED FORTY EIGHT POUNDS A HEAD MORE COLD WEATHER IS FORECAST FOR THE MIDWEST THIS WEEKEND WITH PRIVATE FORECASTING COMPANIES CALLING FOR SUBZERO TEMPERATURES BY SATURDAY FARMERS ARE SLAUGHTERING HOGS ACTIVELY IN AN EFFORT TO MARKET AS MUCH MEAT AS POSSIBLE BEFORE THE COLD WEATHER HITS DALE BENSON SENIOR LIVESTOCK ANALYST FOR DEAN WITTER SAID UNEXPECTEDLY LOW SLAUGHTER OF HOGS LAST WEEK CONTRIBUTED TO THE FUTURES MARKET'S PRICE STRENGTH SLAUGHTER OF HOGS WAS ONLY ABOUT ONE POINT SEVEN EIGHT MILLION HEAD LAST WEEK COMPARED WITH ONE POINT NINE FOUR MILLION A YEAR EARLIER THAT WAS A LITTLE LOWER THAN THE TRADERS EXPECTED MR. BENSON SAID IT PRESSURED THE MARKET HIGHER PARTLY BECAUSE OF LAST WEEK'S RELATIVELY LOW SLAUGHTER THE MOVEMENT OF FROZEN PORK BELLIES INTO COLD STORAGE ALSO WAS LOWER THAN EXPECTED WHEN THE WEEKLY COLD STORAGE REPORT WAS RELEASED AFTER TRADING YESTERDAY THE REPORT SHOWED NET MOVEMENT OF ONE POINT TWO MILLION POUNDS OF PORK BELLIES OR UNCURED BACON INTO COLD STORAGE THAT WAS ON THE LOW END OF TRADE ESTIMATES MR. BENSON SAID IT SHOULD CAUSE SOME FOLLOW THROUGH TODAY GRAINS AND SOYBEANS WHEAT FUTURES PRICES DECLINED IN LIGHT TRADING AHEAD OF A MAJOR U. S. AGRICULTURE DEPARTMENT CROP REPORT WHICH IS SCHEDULED TO BE RELEASED TODAY AT THE CHICAGO BOARD OF TRADE WHEAT FOR MARCH DELIVERY WAS DOWN FIVE CENTS TO THREE POINT EIGHT FIVE SEVEN FIVE DOLLARS A BUSHEL IN ITS REPORT THE U. S. D. A. WILL GIVE ITS FINAL ESTIMATE OF THE NINETEEN NINETY THREE TO NINETY FOUR U. S. GRAIN CROP WHICH HAS PROVED TO BE MUCH SMALLER THAN EXPECTED BECAUSE OF LAST SUMMER'S FLOODING IN THE MIDWEST POSSIBLY MORE SIGNIFICANT FOR GRAIN PRICES WILL BE THE COMPONENT OF THE REPORT THAT SHOWS USE OF GRAIN AS FEED FOR LIVESTOCK IT IS CRITICAL ANALYSTS SAY FOR GRAIN PRICES TO REACH LEVELS AT WHICH CORN AND OTHER GRAINS BECOME TOO EXPENSIVE TO FEED TO LIVESTOCK IN ORDER TO ENSURE THAT ENOUGH GRAIN IS LEFT FOR HUMAN CONSUMPTION ENERGY CRUDE OIL FUTURES PRICES ROSE IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE AS TRADERS ANTICIPATED A BULLISH WEEKLY INVENTORY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE AND ALMOST GRUDGINGLY LET PRICES RECOVER SOME OF MONDAY'S PRECIPITOUS SIXTY FIVE CENT DROP EVEN AS FEBRUARY CONTRACTS GAINED EIGHTEEN CENTS TO CLOSE AT FOURTEEN DOLLARS AND EIGHTY FIVE CENTS A BARREL SOME MARKET PESSIMISTS WERE ANTICIPATING ANOTHER DECLINE IF THE A. P. I. NUMBERS WEREN'T POSITIVE ENOUGH IN FACT THE A. P. I. STATISTICS RELEASED AS USUAL AFTER NYMEX TRADING ENDED SHOWED A DECLINE IN CRUDE U. S. INVENTORIES THAT WAS SIGNIFICANTLY STEEPER THAN GENERALLY ANTICIPATED GASOLINE STOCKS HOWEVER SHOWED AN INCREASE MEANWHILE NATURAL GAS FUTURES SETTLED HIGHER YESTERDAY ON TECHNICAL FACTORS GASOLINE AND HEATING OIL FUTURES FINISHED HIGHER AS WELL THE COMPETITION FOR NINETEEN NINETY EIGHT WINTER OLYMPICS TELEVISION RIGHTS LOOMS AS AN INSTANT REPLAY OF NATIONAL FOOTBALL LEAGUE T. V. BIDDING C. B. S. INCORPORATED VERSUS NEWS CORPORATION'S FOX NETWORK FOX WHICH KNOCKED C. B. S. OUT OF PRO FOOTBALL IN DECEMBER APPEARS TO PRESENT THE LEADING THREAT TO SEIZE THE WINTER GAMES WHICH C. B. S. CARRIED IN NINETEEN NINETY TWO AND WILL AIR THIS YEAR STARTING FEBRUARY TWELFTH THE INTERNATIONAL OLYMPIC COMMITTEE WILL OPEN BIDS NEXT WEDNESDAY IN NEW YORK QUOTE FOX IS GIVING THE IMPRESSION THEY'LL BE VERY COMPETITIVE QUOTE SAYS AN EXECUTIVE AT ANOTHER NETWORK AFTER THE N. F. L. YOU'VE GOT TO TAKE THEM VERY SERIOUSLY THE SO CALLED FOURTH NETWORK WON THE N. F. L.'S NATIONAL FOOTBALL CONFERENCE T. V. PACKAGE BY BIDDING ONE POINT FIVE EIGHT BILLION DOLLARS OVER FOUR YEARS OR FOUR HUNDRED MILLION DOLLARS MORE THAN C. B. S. WAS WILLING TO OFFER RUPERT MURDOCH CHAIRMAN OF PARENT NEWS CORPORATION EMPHASIZED THEN THE VALUE OF SUCH HIGH PROFILE SPORTS PROGRAMMING A FOX SPOKESWOMAN WOULDN'T COMMENT ON THE OLYMPICS AND OTHER OFFICIALS COULDN'T BE REACHED IT IS KNOWN HOWEVER THAT COMPANY OFFICIALS HAVE MET WITH OLYMPIC COMMITTEE NEGOTIATORS FOX HAS ALSO SENT CONSULTANTS TO THE NINETEEN NINETY EIGHT SITE AT NAGANO JAPAN TO STUDY LOGISTICS AND COSTS BEYOND THE ATTRACTIONS OF THE NINETEEN NINETY EIGHT GAMES THIS PROCESS MAY BE A WAY OF PREPARING FOX FOR A BID OF EVEN GREATER INTEREST TO MR. MURDOCH THE SUMMER GAMES OF TWO THOUSAND IN HIS NATIVE AUSTRALIA A STALKING FOX COULD DO WHAT IT DID FOR THE N. F. L. SEND T. V. RIGHTS PRICES THROUGH THE ROOF THE NINETEEN NINETY TWO WINTER GAMES IN ALBERTVILLE FRANCE WENT FOR TWO HUNDRED FORTY THREE MILLION DOLLARS AND THE GAMES IN LILLEHAMMER NORWAY FOR TWO HUNDRED NINETY FIVE MILLION DOLLARS INDUSTRY SPECULATION HAS THE NAGANO GAMES FETCHING MORE THAN THREE HUNDRED FIFTY MILLION DOLLARS N. B. C. WHICH WILL CARRY THE NINETEEN NINETY SIX ATLANTA SUMMER GAMES DROPPED OUT OF THE RUNNING THIS WEEK WE FELT THERE WERE A NUMBER OF FACTORS WHICH WOULDN'T MAKE IT ECONOMICALLY SENSIBLE FOR US A SPOKESMAN SAID OUR PLATE IS PRETTY FULL AS FAR AS SPORTS IS CONCERNED BUT FOR C. B. S. THIS IS AN IMPORTANT BID IT'S STILL REELING FROM THE LOSS OF ITS THIRTY EIGHT YEAR TIE WITH THE N. F. L. AND WANTS TO RESTORE SOME LUSTER TO ITS SPORTS DIVISION C. B. S. ALSO HAS DONE WELL WITH THE PAST TWO WINTER OLYMPICS AND WOULD LIKE TO GET THEM AGAIN C. B. S. HAS BEEN AIDED DURING THE PAST TWO OLYMPICS BY LAYING OFF SOME OF THE PROGRAMMING INVENTORY TO TURNER BROADCASTING SYSTEM INCORPORATED WHICH PAID A COMBINED FIFTY MILLION DOLLARS FOR THE TWO GAMES THE NETWORK HASN'T ESTABLISHED A CABLE PARTNER YET IN CONNECTION WITH ITS NINETEEN NINETY EIGHT BID IT HAS HOWEVER HELD TALKS WITH AFFILIATES ON WHETHER THEY WILL CONTRIBUTE TO THE BID'S COST THEY'VE HAD A SUCCESSFUL EXPERIENCE WITH THE GAMES AT LILLEHAMMER AND THEY'RE LIKELY TO FEEL BETTER ABOUT BEING AGGRESSIVE ABOUT JAPAN SAYS JERRY DOMINUS A SENIOR VICE PRESIDENT OF THE J. WALTER THOMPSON AD AGENCY AND FORMER C. B. S. EXECUTIVE BUT THESE DAYS RUPERT MURDOCH SEEMS TO HAVE A DIFFERENT WAY OF EVALUATING WHAT A PROPERTY IS WORTH AND THAT MAY BLOW THE LID OFF OF EVERYBODY INVESTMENT BANK LEHMAN BROTHERS INTERNATIONAL SAID IT HANDED OVER SHARES WORTH TWENTY SEVEN MILLION POUNDS FORTY POINT THREE MILLION DOLLARS TO THE LIQUIDATORS OF BISHOPSGATE INVESTMENT MANAGEMENT THE TRUSTEE OF SOME OF THE PENSION FUNDS DEPLETED BY THE LATE ROBERT MAXWELL THE SETTLEMENT IS PART OF A MULTIMILLION POUND CLAIM BY THE MAXWELL LIQUIDATORS ROBSON RHODES AGAINST LEHMAN BROTHERS LEHMAN IS STILL CONTESTING BIM'S CLAIM FOR THE RECOVERY OF OTHER ASSETS WORTH ABOUT SEVENTY MILLION LEHMAN BROTHERS INTERNATIONAL IS THE LONDON BASED SUBSIDIARY OF U. S. BASED AMERICAN EXPRESS CO'S LEHMAN BROTHERS INCORPORATED BROKERAGE UNIT THE HOLDINGS TURNED OVER TO THE BIM LIQUIDATORS CONSIST OF UNITS IN A LAZARD PROPERTY UNIT TRUST AND SHARES IN THE DAILY TELEGRAPH P. L. C. ROBSON RHODES HAD ALLEGED THAT LEHMAN ACCEPTED STOCKS TAKEN FROM MAXWELL PENSION FUNDS AS COLLATERAL FOR IMPROPER DEALINGS WITH OTHER MAXWELL COMPANIES THERE IS A FURTHER CLAIM AGAINST LEHMAN IN ITS DEALINGS WITH MAXWELL RELATED ENTITIES MIRROR GROUP PENSION TRUSTEES HAVE FILED CLAIMS TOTALING ABOUT TWO HUNDRED MILLION POUNDS AGAINST LEHMAN AND FUND MANAGERS INVESCO M. I. M. AND CAPEL CURE MYERS A LEHMAN SPOKESWOMAN SAID THE GROUPS WILL CONTINUE TO DEFEND THEMSELVES AGAINST THE CLAIMS SONY CORPORATION A CONSUMER ELECTRONICS AND ENTERTAINMENT GIANT ANNOUNCED EXECUTIVE APPOINTMENTS AT ITS RECORDED MUSIC DIVISIONS MEL ILBERMAN FORMERLY PRESIDENT OF SONY MUSIC INTERNATIONAL WAS NAMED CHAIRMAN OF THE UNIT A NEW POST ILBERMAN SIXTY FIVE YEARS OLD WILL BE SUCCEEDED BY ROBERT M. BOWLIN FORTY MR. ILBERMAN AND MR. BOWLIN BOTH CONTINUE AS CORPORATE EXECUTIVE VICE PRESIDENTS OF THE UNIT DON IENNER FORTY TWO PRESIDENT OF COLUMBIA RECORDS SINCE NINETEEN EIGHTY NINE WAS NAMED TO THE ADDITIONAL POSITION OF CHAIRMAN A NEW POST DAVID GLEW NAMED PRESIDENT OF EPIC RECORDS IN NINETEEN EIGHTY NINE BECOMES CHAIRMAN OF THE EPIC RECORDS GROUP A NEW POSITION MR. GLEW FIFTY TWO IS SUCCEEDED BY RICHARD GRIFFITHS THIRTY NINE FORMERLY AN EPIC RECORDS EXECUTIVE VICE PRESIDENT AND PRESIDENT OF EPIC ASSOCIATED MICHELE ANTHONY THIRTY SIX WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT FOR SONY MUSIC ENTERTAINMENT INCORPORATED MS. ANTHONY WAS FORMERLY EXECUTIVE VICE PRESIDENT OF SONY MUSIC SONY MUSIC ENTERTAINMENT INCORPORATED THE UMBRELLA COMPANY FOR SONY MUSIC SONY MUSIC INTERNATIONAL AND SONY CLASSICAL OVERSEES SONY'S WORLD WIDE SOFTWARE AND MUSIC OPERATIONS BANKERS WHO LOST MONEY LENDING TO OLYMPIA AND YORK DEVELOPMENTS LIMITED ARE SELLING FOR EIGHT HUNDRED EIGHTY SIX POINT TWO MILLION CANADIAN DOLLARS SIX HUNDRED SEVENTY TWO POINT SEVEN MILLION U. S. DOLLARS THE SIXTY ONE PERCENT STAKE IN ABITIBI PRICE INCORPORATED THAT PARTLY SECURED THEIR LOANS THE SECONDARY OFFERING OF ABITIBI PRICE SHARES WILL ENABLE THE BANKERS TO CASH IN ON A RECENT RUNUP IN THE STOCK PRICE OF THE BIG NEWSPRINT MAKER THE FIFTY FOUR POINT FIVE MILLION ABITIBI PRICE SHARES ARE BEING SOLD THROUGH AN UNDERWRITING GROUP FOR SIXTEEN CANADIAN DOLLARS AND TWENTY FIVE CENTS A SHARE PAYABLE IN THREE INSTALLMENTS ENDING IN OCTOBER NINETEEN NINETY FIVE THE SHARES AREN'T BEING PUBLICLY OFFERED IN THE U. S. FOLLOWING YESTERDAY'S ANNOUNCEMENT ABITIBI PRICE SHARES CLOSED AT SIXTEEN CANADIAN DOLLARS AND TWENTY FIVE CENTS EACH DOWN TWENTY FIVE CANADIAN CENTS ON THE TORONTO STOCK EXCHANGE THAT IS STILL MORE THAN FIFTY PERCENT ABOVE THE STOCK'S FIFTY TWO WEEK LOW OF TEN CANADIAN DOLLARS AND SEVENTY FIVE CENTS REACHED AT THE END OF SEPTEMBER ABITIBI PRICE HAS BEEN STRUGGLING TO RETURN TO PROFITABILITY AFTER REPORTING LOSSES SINCE NINETEEN NINETY FOR THE NINE MONTHS ENDED SEPTEMBER THIRTIETH THE TORONTO COMPANY HAD A LOSS FROM CONTINUING OPERATIONS OF SEVENTY TWO POINT THREE MILLION CANADIAN DOLLARS OR ONE CANADIAN DOLLAR AND FIVE CENTS A SHARE COMPARED WITH A LOSS FROM CONTINUING OPERATIONS OF ONE HUNDRED FORTY EIGHT POINT SEVEN MILLION CANADIAN DOLLARS OR TWO CANADIAN DOLLARS AND SIXTEEN CENTS A YEAR EARLIER LIKE OTHER NEWSPRINT PRODUCERS ABITIBI PRICE HAS FOCUSED ON COST CUTTING TO NARROW ITS LOSSES WHILE WAITING FOR PRICES TO RISE TO JUSTIFY A SHARE PRICE OF SIXTEEN CANADIAN DOLLARS AND TWENTY FIVE CENTS FOR ABITIBI PRICE QUOTE YOU HAVE TO SPECULATE ON SOME PRETTY SIGNIFICANT IMPROVEMENT IN NEWSPRINT MARKETS QUOTE SAYS ROSS HAY ROE AN ANALYST WITH RESEARCH CAPITAL CORPORATION IN VANCOUVER BRITISH COLUMBIA THAT MAY BE REASONABLE SPECULATION HE SAYS GIVEN THAT THE NORTH AMERICAN NEWSPRINT INDUSTRY OPERATED AT NINETY SIX PERCENT OF CAPACITY OVER THE PAST FOUR MONTHS AND TOTAL INVENTORIES DECLINED BUT IF YOU'RE A BANKER YOU'RE NOT INCLINED TO SPECULATE HE SAYS A AND G. RESOURCES CORPORATION THE UNIT SELLING THE ABITIBI PRICE SHARES IS CONTROLLED BY BANKERS THAT LENT TO OLYMPIA AND YORK THE BIG REAL ESTATE CONCERN THAT REORGANIZED ABOUT SEVEN BILLION U. S. DOLLARS IN DEBTS UNDER CANADIAN BANKRUPTCY COURT PROTECTION LAST YEAR AFTER THE REORGANIZATION CREDITORS THAT HAD LOANED O. AND Y. TWO POINT FIVE BILLION DOLLARS THE SO CALLED JUMBO LOAN DATING FROM NINETEEN EIGHTY NINE SEIZED THE COLLATERAL SECURING THEIR LOAN THIS COLLATERAL INCLUDED THE ABITIBI PRICE SHARES AS WELL AS ONE HUNDRED THIRTEEN POINT EIGHT MILLION SHARES IN GULF CANADA RESOURCES LIMITED EQUAL TO SIXTY NINE POINT EIGHT PERCENT OF THE COMPANY'S COMMON SHARES OUTSTANDING THE GULF CANADA BLOCK IS VALUED AT FOUR HUNDRED SIX POINT TWO MILLION U. S. DOLLARS AT YESTERDAY'S MARKET PRICE INDICATING THE ORIGINAL JUMBO LOAN NOW HAS A VALUE OF JUST ONE POINT OH EIGHT BILLION DOLLARS PROCEEDS OF SIX HUNDRED SEVENTY TWO POINT SEVEN MILLION U. S. DOLLARS FROM THE ABITIBI PRICE SHARE SALE WILL BE REPAID TO THE JUMBO LOAN LENDERS ON A PROPORTIONATE BASIS THE TOP FIVE LENDERS UNDER THE JUMBO LOAN ARE H. S. B. C. HOLDINGS P. L. C.'S HONGKONG AND SHANGHAI BANKING CORPORATION COMMERZBANK INTERNATIONAL S. A. CREDIT LYONNAIS ROYAL BANK OF CANADA AND DAI ICHI KANGYO BANK LIMITED THE TREASURY PLANS TO PAY DOWN FOURTEEN POINT FIVE THREE BILLION DOLLARS ON THE PUBLIC DEBT WITH PROCEEDS FROM THE SALE NEXT TUESDAY OF ABOUT TWENTY FIVE POINT TWO BILLION DOLLARS IN SHORT TERM BILLS MATURING BILLS OUTSTANDING TOTAL THIRTY NINE POINT SEVEN THREE BILLION DOLLARS INCLUDING ABOUT FOURTEEN POINT ONE OH BILLION DOLLARS OF SIXTY SIX DAY CASH MANAGEMENT BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN THIRTEEN WEEK AND TWENTY SIX WEEK BILLS MATURING ON APRIL TWENTY FIRST NINETEEN NINETY FOUR AND JULY TWENTY FIRST NINETEEN NINETY FOUR RESPECTIVELY THE CUSIP NUMBER FOR THE THREE MONTH BILLS IS NINE ONE TWO SEVEN NINE FOUR K. TWENTY NINE THE CUSIP NUMBER FOR THE SIX MONTH BILLS IS NINE ONE TWO SEVEN NINE FOUR M. FIFTY NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM TEN THOUSAND DOLLAR DENOMINATIONS MUST BE RECEIVED BY NOON E. S. T. MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY ONE P. M. SEPARATELY THE TREASURY SAID THAT ON MAY FIFTEENTH IT WILL CALL FOR REDEMPTION AT PAR TWENTY FIVE YEAR BONDS DUE MAY FIFTEENTH NINETEEN NINETY NINE THERE IS TWO POINT THREE EIGHT BILLION DOLLARS OF THE EIGHT AND ONE HALF PERCENT BONDS OUTSTANDING THE TREASURY SAID THAT THE NINE HUNDRED SIXTY ONE MILLION DOLLARS OF BONDS HELD BY PRIVATE INVESTORS WOULD BE REFINANCED WITH AN ISSUE OF FIVE YEAR NOTES TO BE ANNOUNCED JANUARY NINETEENTH THE EIGHT AND ONE HALF PERCENT RATE ON THE BOND IS QUOTE SIGNIFICANTLY QUOTE HIGHER THAN CURRENT BORROWING COSTS SAID THE TREASURY WHICH SAID THAT CALLING THE BOND WILL SAVE TAXPAYERS ONE HUNDRED FIFTY MILLION DOLLARS TO ONE HUNDRED SIXTY MILLION DOLLARS BONDS HELD IN COUPON OR REGISTERED FORM SHOULD BE PRESENTED FOR REDEMPTION THROUGH A FINANCIAL INSTITUTION AT A FEDERAL RESERVE BANK OR BRANCH OR AT THE TREASURY SECURITIES NOT REDEEMED BY MAY FIFTEENTH WILL STOP EARNING INTEREST THE CUSIP NUMBER ON THE BONDS IS NINE ONE TWO EIGHT ONE OH B. R. EIGHT ALUMINUM CORPORATION OF AMERICA REPORTED A WIDER THAN EXPECTED NET LOSS OF EIGHTY SIX POINT NINE MILLION DOLLARS OR ONE DOLLAR A SHARE FOR THE NINETEEN NINETY THREE FOURTH QUARTER SENDING THE STOCK OF THE NATION'S LARGEST ALUMINUM MAKER SKIDDING THREE POINT FOUR PERCENT THE QUARTERLY LOSS INCLUDED A PREVIOUSLY ANNOUNCED CHARGE OF SEVENTY POINT TWO MILLION DOLLARS OR EIGHTY CENTS A SHARE FOR A THREE PERCENT WORK FORCE REDUCTION AND PLANT CLOSINGS THE STOCK FELL TWO DOLLARS AND FIFTY CENTS TO SEVENTY ONE POINT SIX TWO FIVE DOLLARS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE EXCLUDING THE CHARGE ALCOA POSTED A LOSS OF SIXTEEN POINT SEVEN MILLION DOLLARS OR TWENTY CENTS A SHARE FOR THE NINETEEN NINETY TWO FOURTH QUARTER IT POSTED A LOSS OF EIGHTY MILLION DOLLARS OR NINETY FOUR CENTS A SHARE WHICH INCLUDED CHARGES OF ONE HUNDRED TWENTY NINE MILLION DOLLARS WALL STREET ANALYSTS HAD A CONSENSUS ESTIMATE OF INCOME OF SEVEN CENTS A SHARE BEFORE THE CHARGE ACCORDING TO A SURVEY BY FIRST CALL PART OF THOMSON FINANCIAL SERVICES THE ALUMINUM INDUSTRY HAS SUFFERED AMID THE LOWEST EVER INFLATION ADJUSTED ALUMINUM PRICES AS A RESULT ALCOA'S REVENUE FELL ONE HUNDRED FORTY MILLION DOLLARS TO TWO POINT THREE ONE BILLION DOLLARS WHILE ITS COSTS OF GOODS SOLD FELL ONLY TWO MILLION DOLLARS ON THE POSITIVE SIDE THE COMPANY CITED IMPROVED EARNINGS FROM ALCOA OF AUSTRALIA AND ALCOA ALUMINIO IN BRAZIL FOR NINETEEN NINETY THREE AFTER EXTRAORDINARY CHARGES THE COMPANY REPORTED NET INCOME OF FOUR POINT EIGHT MILLION DOLLARS OR THREE CENTS A SHARE THAT INCLUDED CURRENCY GAINS OF NINE MILLION DOLLARS COMPARED WITH LOSSES OF ELEVEN POINT ONE MILLION DOLLARS IN NINETEEN NINETY TWO FOR NINETEEN NINETY TWO ALCOA REPORTED A LOSS OF ONE POINT ONE FOUR BILLION DOLLARS OR THIRTEEN DOLLARS AND FORTY ONE CENTS A SHARE FOR NINETEEN NINETY TWO THE PREVIOUS YEAR ALSO INCLUDED INVENTORY GAINS OF FORTY NINE POINT NINE MILLION DOLLARS COMPARED WITH NO NINETEEN NINETY THREE GAINS THOUGH THE FOURTH QUARTER LOSS WAS SEVENTEEN CENTS MORE THAN EXPECTED BY JOHN C. TUMAZOS AN ANALYST AT DONALDSON LUFKIN AND JENRETTE HE SAID THE COMPANY'S EARNINGS DIDN'T DETERIORATE AS MUCH AS ALUMINUM PRICE AND ALCOA PERFORMED QUOTE WORSE THAN EXPECTED BUT BETTER THAN ITS PEERS QUOTE HE SAID PREDICTING THAT NO OTHER COMPANY IN THE ALUMINUM INDUSTRY IS LIKELY TO BE PROFITABLE IN THE FOURTH QUARTER THE FEDERAL TRADE COMMISSION SAID RUBUS DEVELOPMENT CORPORATION AND FURR'S SUPERMARKETS INCORPORATED AGREED TO PAY FOUR HUNDRED THOUSAND DOLLARS IN CIVIL PENALTIES FOR VIOLATING A NINETEEN EIGHTY EIGHT CONSENT DECREE THE CONSENT DECREE FOLLOWED A NINETEEN EIGHTY SEVEN TRANSACTION IN WHICH RUBUS THEN KNOWN AS SUPERMARKET DEVELOPMENT CORPORATION ACQUIRED THE EL PASO DIVISION OF SAFEWAY STORES INCORPORATED THROUGH FURR'S INCORPORATED WHOSE STORES IN TEXAS AND NEW MEXICO WERE OWNED AND OPERATED BY SUPERMARKET DEVELOPMENT FURR'S INCORPORATED WAS SUCCEEDED BY FURR'S SUPERMARKETS FURR'S SUPERMARKETS AND RUBUS ARE BASED IN ALBUQUERQUE N. M. THE SETTLEMENT REQUIRED RUBUS AND FURR'S TO DIVEST THEMSELVES OF SUPERMARKETS IN TWELVE TOWNS IN NEW MEXICO AND TEXAS WHERE THE DEAL OTHERWISE WOULD HAVE SUBSTANTIALLY DECREASED SUPERMARKET COMPETITION AMONG OTHER THINGS THE F. T. C. CHARGED THE COMPANIES WITH QUOTE FAILING TO MAINTAIN THE VIABILITY AND MARKETABILITY OF THE SIX FURR'S STORES THEY WERE REQUIRED TO DIVEST BY PERMITTING THEIR DETERIORATION OR IMPAIRMENT QUOTE ACCORDING TO A COMMISSION STATEMENT BUZZ DOYLE EXECUTIVE VICE PRESIDENT OF FURR'S SUPERMARKETS SAID HE COULDN'T COMMENT ON THE F. T. C. CHARGES BUT ADDED WE HAVE AGREED TO THE SETTLEMENT TO PUT THIS MATTER BEHIND US ELECTRONIC DATA SYSTEMS CORPORATION SIGNED A THREE YEAR AGREEMENT WITH DOW JONES AND COMPANY TO DEVELOP A COMPUTERIZED NEWS MANAGEMENT SYSTEM TERMS WEREN'T DISCLOSED THE SO CALLED GLOBAL NEWS MANAGEMENT SYSTEM WILL REPLACE THE EXISTING EDITORIAL SYSTEMS USED BY THE WALL STREET JOURNAL ITS INTERNATIONAL EDITIONS AND BARRON'S MAGAZINE THE SYSTEM WILL RELY ON STANDARD OFF THE SHELF SOFTWARE EQUIPPED WITH ADDED FEATURES CUSTOMIZED FOR DOW JONES SAID E. D. S. A UNIT OF GENERAL MOTORS CORPORATION RUSSIA'S NEW PARLIAMENT OPENED AND WITHIN AN HOUR WAS HARD AT ARGUING SHOWING THAT THIS LEGISLATURE WON'T FIND COMPROMISE ANY EASIER THAN ITS PREDECESSOR DID PRESIDENT BORIS YELTSIN POINTEDLY AVOIDED THE POWERFUL BUT CONTENTIOUS LOWER HOUSE THE STATE DUMA AND CHOSE TO ADDRESS THE MORE AGREEABLE UPPER HOUSE OR FEDERATION COUNCIL WHICH IS MADE UP OF REPRESENTATIVES FROM RUSSIA'S REGIONS HIS SPEECH CALLED FOR COOPERATION AS WELL AS FOR CONTINUING REFORMS AND THE CREATION OF LAWS TO SUPPORT THEM QUOTE IT IS IMPORTANT NOT TO STOP HALFWAY QUOTE HE SAID LAWS ARE THE BASIS OF DEMOCRACY MEANWHILE SEVERAL MILES AWAY IN THE STATE DUMA A BITTER WRANGLE FOR POWER BROKE OUT SHORTLY AFTER THE OPENING SPEECHES AND LASTED ALL DAY THE APPARENTLY ARCANE STRUGGLE OVER HOW TO FORM FACTIONS GAVE AN EARLY INDICATION OF THE KINDS OF ALLIANCES THAT ARE LIKELY TO EMERGE AMONG THE EIGHT PARTIES THAT HAVE DUMA SEATS AND SHOWED THAT ULTRA NATIONALIST VLADIMIR ZHIRINOVSKY INTENDS TO PARTICIPATE ACTIVELY WITHIN HIS PARTY BY TRADITION THE DUMA WAS OPENED AND CHAIRED BY ITS ELDEST MEMBER WHO HAPPENED TO BE A MEMBER OF MR. ZHIRINOVSKY'S MISLEADINGLY NAMED LIBERAL DEMOCRATIC PARTY THE SIXTY EIGHT YEAR OLD GEORGY LUKAVA IN HIS OPENING SPEECH CALLED FOR THE REBIRTH OF A GREAT RUSSIA AND DREW A STANDING OVATION FROM HIS PARTY COMRADES THEN A COMMUNIST PARTY MEMBER LED A MOMENT OF SILENCE IN MEMORY OF THOSE WHO DIED IN THE ASSAULT ON THE PREVIOUS PARLIAMENT LOCATED JUST ACROSS THE STREET MR. YELTSIN HAD DISBANDED THE EARLIER PARLIAMENT AND IN OCTOBER BOMBARDED IT DURING A FURIOUS STANDOFF WHEN MR. YELTSIN'S MAN PRIME MINISTER VIKTOR CHERNOMYRDIN SPOKE AT THE DUMA HE WAS MET WITH LIMP APPLAUSE HE PROMISED A NEW STAGE OF ECONOMIC REFORMS THAT WOULD FOCUS ON INDUSTRIAL PRODUCTION AND AVOID UNREASONABLE SHOCK ACTIONS MR. ZHIRINOVSKY DREW ATTENTION FROM THE MOMENT HE ENTERED THE GLASS AND GRANITE BUILDING THAT USED TO HOUSE COMECON THE ECONOMIC GROUP OF SOCIALIST COUNTRIES SURROUNDED BY GUARDS PHOTOGRAPHERS AND JOURNALISTS HE GESTICULATED HIS WAY THROUGH THE HALLS MR. ZHIRINOVKSY THEN TALKED AND GESTICULATED THROUGHOUT THE FIRST FEW HOURS OF THE SESSION AS EXPECTED THE COMMUNIST PARTY ALIGNED WITH ITS RURAL KIN THE AGRARIAN PARTY AND MR. ZHIRINOVSKY'S LIBERAL DEMOCRATIC PARTY COMMANDING ROUGHLY HALF OF THE VOTES IN THE DUMA IN THE KEY ISSUE OF THE DAY THE COMMUNIST LED CAMP WANTED TO SET A LIMIT THAT WOULD REQUIRE ALL GROUPS OR FACTIONS WITHIN THE PARLIAMENT TO HAVE AT LEAST FIFTY MEMBERS THE DEBATE KNOCKED EVERYTHING ELSE OFF OF THE AGENDA THE COMMUNIST ZHIRINOVSKY SIDE WANTED TO LIMIT THE TOTAL NUMBER OF GROUPS SO AS TO SOLIDIFY ITS OWN POWER AS SOME OF THE LARGEST PARTIES OPPONENTS WANTED TO FOSTER AS MANY FACTIONS AS POSSIBLE SO AS TO ERADICATE THAT POWER AFTER NUMEROUS VOTES THE DUMA SETTLED ON THIRTY FIVE MEMBERS FOR A FACTION SIZE THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE PERCENT HIGH TWO AND FIFTEEN SIXTEENTHS PERCENT LOW TWO AND SEVEN EIGHTHS PERCENT NEAR CLOSING BID TWO AND FIFTEEN SIXTEENTHS PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH SIX PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH NINE PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT ONE OH PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE FOUR PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT ONE SIX PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO FIVE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED SIXTY FOUR DAYS THREE POINT THREE THREE PERCENT TWO HUNDRED SIXTY FIVE TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE TWO PERCENT THIRTY DAYS THREE POINT ONE FOUR PERCENT SIXTY DAYS THREE POINT ONE EIGHT PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE FOUR PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT SIX ONE PERCENT THREE MONTHS TWO POINT SEVEN FIVE PERCENT SIX MONTHS TWO POINT NINE SEVEN PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT ONE OH PERCENT ONE MONTH THREE POINT ONE EIGHT PERCENT THREE MONTHS THREE POINT TWO EIGHT PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH THREE PERCENT THIRTY DAYS THREE POINT OH FOUR PERCENT SIXTY DAYS THREE POINT OH SEVEN PERCENT NINETY DAYS THREE POINT ONE OH PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE FIVE PERCENT ONE HUNDRED FIFTY DAYS THREE POINT TWO OH PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE SIXTEENTH PERCENT TWO AND FIFTEEN SIXTEENTHS PERCENT ONE MONTH THREE AND ONE EIGHTH PERCENT THREE PERCENT TWO MONTHS THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT THREE MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT FOUR MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT FIVE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT THREE AND FIVE SIXTEENTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT SIX MONTHS THREE AND THREE QUARTERS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT EIGHT PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY TENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT OH TWO PERCENT THIRTEEN WEEKS THREE POINT ONE EIGHT PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT SIX PERCENT SIXTY DAYS SIX POINT NINE THREE PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT OH PERCENT SIXTY DAYS SIX POINT NINE OH PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT OH FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN FOUR PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS C. B. T. CORPORATION OF PADUCAH KENTUCKY WILL ACQUIRE B. M. C. BANKCORP OF BENTON KENTUCKY IN A STOCK SWAP VALUED AT FIFTY FOUR MILLION DOLLARS C. B. T. HAS ASSETS OF ABOUT SIX HUNDRED MILLION DOLLARS WHILE B. M. C. HAS ABOUT TWO HUNDRED MILLION DOLLARS COMPLETION IS SUBJECT TO APPROVAL BY B. M. C. SHAREHOLDERS AND REGULATORY AUTHORITIES B. M. C.'S STOCKHOLDERS WILL RECEIVE TWO SHARES OF C. B. T. COMMON STOCK FOR EACH OF B. M. C.'S FIVE HUNDRED NINETY SEVEN THOUSAND SEVEN HUNDRED EIGHTY SHARES C. B. T. HAS THE OPTION TO PURCHASE UP TO NINETEEN POINT NINE PERCENT OF B. M. C.'S STOCK THE TRANSACTION IS EXPECTED TO BE COMPLETED IN THE NINETEEN NINETY FOUR SECOND QUARTER FOLLOWING THE MERGER THREE B. M. C. DIRECTORS WILL BE ADDED TO C. B. T. CORPORATION'S BOARD ITS CHAIRMAN JOE TOM HALTOM BILLY B. MORGAN AND KERRY B. HARVEY NO MANAGEMENT CHANGES ARE EXPECTED DONALD TRUMP'S INTENTION TO FINALIZE QUICKLY A DEAL TO ACQUIRE THE ALADDIN HOTEL AND CASINO IN LAS VEGAS FOR ABOUT SIXTY MILLION DOLLARS HAS RUN INTO A HITCH THE CASINO'S OWNER BELL ATLANTIC TRICON LEASING CORPORATION A UNIT OF BELL ATLANTIC CORPORATION SAID IT WILL HOLD A SEALED BID AUCTION ON THE PROPERTY IN ANNOUNCING ITS INTENTION THE COMPANY SAID QUOTE A NUMBER OF SERIOUS QUALIFIED PARTIES HAVE INQUIRED ABOUT ITS AVAILABILITY AND HAVE MADE PROPOSALS TO TRICON QUOTE THE COMPANY ACQUIRED THE PROPERTY IN NINETEEN NINETY ONE AS A RESULT OF THE BANKRUPTCY PROCEEDINGS OF ITS FORMER OWNER GINJI CORPORATION IF OTHER BIDDERS EMERGE MR. TRUMP WOULD HAVE TO CONVINCE THE OWNER THAT HE WOULD BE ABLE TO COMPLETE THE KIND OF PUBLIC DEBT OR EQUITY OFFERING HE IS COUNTING ON TO FINANCE THE PURCHASE SEPARATELY THE TRUMP ORGANIZATION ANNOUNCED THAT AN ADVISORY COMMITTEE TO THE MAYOR OF GARY INDIANA HAD DEEMED MR. TRUMP ONE OF THE COMPANIES MOST QUALIFIED TO DEVELOP AND OPERATE ONE OF THREE RIVERBOAT CASINOS PLANNED FOR THE CITY NEXT MR. TRUMP MUST BE LICENSED BY THE STATE ELDEC CORPORATION SAID IT EXPECTS TO REPORT THAT NET INCOME WAS LESS THAN ANTICIPATED IN THE THIRD QUARTER ENDED DECEMBER TWENTY SIXTH BECAUSE OF A PROVISION OF FOUR HUNDRED THOUSAND DOLLARS OR FIVE CENTS A SHARE THAT THE COMPANY EXPECTS TO TAKE AGAINST THE QUARTER'S EARNINGS FOR A POTENTIAL ACCOUNTS RECEIVABLE DEFAULT ANALYSTS COVERING THE COMPANY HAD EXPECTED IT TO REPORT NET INCOME OF ABOUT SIX CENTS A SHARE SAID THOMAS BROWN THE COMPANY'S CHIEF EXECUTIVE OFFICER IN THE YEAR AGO QUARTER THE AEROSPACE AND DEFENSE SUBCONTRACTOR REPORTED NET INCOME OF SEVEN HUNDRED THIRTY ONE THOUSAND DOLLARS OR THIRTEEN CENTS A SHARE ON SALES OF TWENTY SEVEN POINT FIVE MILLION DOLLARS YOUR OCTOBER TWENTY NINTH ARTICLE ON LAWYERS' ETHICAL STANDARDS MISCHARACTERIZED THIS AGENCY'S POSITION ON A LAWYER'S DUTY OF DISCLOSURE YOUR ARTICLE WHICH REVIEWED ACTIONS IN GENERAL AGAINST LAWYERS STATED THAT O. T. S. QUOTE HAS ALLEGED THAT AN ATTORNEY REPRESENTING A CLIENT IN A BANK EXAMINATION MUST DISCLOSE TO THE EXAMINER THAT A CLIENT MISLEAD REGULATORS QUOTE THAT'S NOT OUR POSITION AT ALL THIS AGENCY'S POSITION IS THAT A LAWYER HAS NO MORE RIGHT THAN HIS OR HER CLIENT TO MISLEAD GOVERNMENT OFFICIALS IN VIOLATION OF THE LAW IF A LAWYER CHOOSES TO MAKE STATEMENTS OF FACT TO AN EXAMINER IN PLACE OF THE CLIENT AS PETER FISHBEIN AND KAYE SCHOLER DID IN REPRESENTING LINCOLN SAVINGS THEN THE LAWYER IS SUBJECT TO THE SAME DISCLOSURE REQUIREMENTS AS THE CLIENT THERE IS NOTHING NOVEL ABOUT THIS PRINCIPLE IN FACT THE ETHICS RULES ARE CLEAR THAT THE ATTORNEY CLIENT PRIVILEGE AND THE DUTY OF CONFIDENTIALITY PROVIDE NO LICENSE FOR A LAWYER TO DECEIVE OR MISLEAD BOTH THE AMERICAN BAR ASSOCIATION'S STANDING COMMITTEE ON LEGAL ETHICS AND THE A. B. A. TASK FORCE APPOINTED AFTER THE KAYE SCHOLER CASE AGREE WITH THE O. T. S. POSITION WE SEE NO PURPOSE IN RESPONDING TO STATEMENTS ABOUT THE ACTIONS OF THE NEW YORK BAR'S DISCIPLINARY COMMITTEE THIS AGENCY AND KAYE SCHOLER SETTLED OUR PROCEEDING MORE THAN EIGHTEEN MONTHS AGO THOSE WHO BELIEVE THAT MR. FISHBEIN WAS EXONERATED BY THE COMMITTEE'S FINDINGS SHOULD READ THE O. T. S. NOTICE OF CHARGES IN THE CASE PRESIDENT CLINTON IS IN PRAGUE TODAY FOR FOREIGN POLICY TALKS WITH CENTRAL EUROPEAN LEADERS WHILE HE'S THERE TOURING AT KMART HE SHOULD ASK FOR A BRIEFING ON THE REMARKABLE SUCCESS STORY OF THE CZECH REPUBLIC ITS IMPRESSIVE TRANSFORMATION INTO A DEMOCRATIC FREE MARKET SOCIETY CAN PROVIDE SOME VALUABLE LESSONS FOR OTHER STRUGGLING POST COMMUNIST NATIONS THE CZECH ECONOMIC REFORMS HAVE SO FAR BEEN CARRIED OUT WITH MODEST SOCIAL DISRUPTION UNEMPLOYMENT IS THREE PERCENT INFLATION WAS TEN PERCENT LAST YEAR AND THE COUNTRY HAS A BUDGET SURPLUS AND A CURRENCY THAT'S BEEN COMPLETELY STABLE FOR FORTY STRAIGHT MONTHS SOME SEVENTY FIVE PERCENT OF THE ECONOMY HAS BEEN SHIFTED INTO PRIVATE HANDS THROUGH AN INNOVATIVE VOUCHER PROGRAM MORE THAN HALF OF THE CZECH PEOPLE NOW HAVE AN OWNERSHIP STAKE IN THE ECONOMY JUST AFTER RUSSIAN NATIONALISTS DID WELL IN LAST MONTH'S ELECTIONS CLINTON ADVISER STROBE TALBOTT CALLED FOR QUOTE LESS SHOCK AND MORE THERAPY QUOTE IN BORIS YELTSIN'S ECONOMIC POLICIES BUT IN THE PAST WEEK THE CLINTONITES HAVE ONCE AGAIN EMPHASIZED THE NEED FOR FURTHER REFORMS PERHAPS SEEING THE PROGRESS THE CANNY CZECHS HAVE MADE WILL EMBOLDEN THEM IN THAT VIEW INSURANCE AGENTS AND BROKERS KNOW YOU'RE WORRIED ABOUT TAXES THIS TIME OF YEAR SO DON'T BE SURPRISED IF YOU GET A CALL PROMOTING ONE OF THEIR FAVORITE TAX DEFERRED INVESTMENTS SINGLE PREMIUM FIXED RATE ANNUITIES THE CLASSIC PITCH FOR ANNUITIES SOUNDS VERY APPEALING THEY LOOK A LOT LIKE BANK CERTIFICATES OF DEPOSIT BUT OFFER MUCH HIGHER YIELDS AT LEAST INITIALLY AND THEY ALLOW INCOME TO BUILD TAX DEFERRED BUT THERE ARE SOME POTENTIAL DRAWBACKS INCLUDING ONE THAT HASN'T GOTTEN MUCH ATTENTION UNTIL RECENTLY MORE AND MORE ANNUITIES ARE BACKED AT LEAST IN PART BY QUOTE COLLATERALIZED MORTGAGE OBLIGATIONS QUOTE THESE SECURITIES KNOWN AS C. M. O.S ARE SOPHISTICATED INVESTMENTS THAT ARE CREATED BY CARVING UP THE INTEREST AND PRINCIPAL PAYMENTS FROM POOLS OF HOME MORTGAGES BECAUSE THOSE MORTGAGES CAN BE REFINANCED OR REPAID BY HOMEOWNERS ANYTIME THOSE INTEREST AND PRINCIPAL PAYMENTS CAN BE VERY UNPREDICTABLE THAT IN TURN CAN MAKE C. M. O.S' RETURNS CAPRICIOUS C. M. O.S ARE GENERALLY TRIPLE A RATED SECURITIES SO THERE'S LITTLE DANGER OF DEFAULT BUT THE RISK OF DEFAULT IS ONLY ONE OF THE RISKS AN INVESTOR SHOULD CONSIDER WITH C. M. O.S THE MAIN THREAT IS A SUDDEN CHANGE IN INTEREST RATES IF RATES FALL AND HOMEOWNERS RUSH TO REFINANCE THEIR MORTGAGES C. M. O. INVESTORS GET PAID OFF EARLY LEAVING THEM TO INVEST IN LOWER PAYING ALTERNATIVES THIS IS KNOWN AS PREPAYMENT RISK BUT IF RATES RISE HOMEOWNERS KEEP THEIR MORTGAGES MEANING THE C. M. O. INVESTOR IS STUCK EARNING A RATE BELOW WHAT THE MARKET IS CURRENTLY PAYING FOR SIMILAR INVESTMENTS THIS IS KNOWN AS EXTENSION RISK IN EXCHANGE FOR ASSUMING THAT UNCERTAINTY THE C. M. O. INVESTOR IN THIS CASE THE INSURANCE COMPANY EARNS AN ATTRACTIVE YIELD THE EXTRA INCOME LETS THE INSURER OFFER BETTER YIELDS TO CONSUMERS THE PROBLEM IS THERE'S NO GUARANTEE THOSE YIELDS WILL COME THROUGH AS EXPECTED IN FACT A RECENT REPORT BY MOODY'S INVESTORS SERVICE INCORPORATED A MAJOR CREDIT RATING AGENCY WARNS THAT YIELDS ON ANNUITIES BACKED BY C. M. O.S COULD DECLINE IN PERIODS OF RAPIDLY CHANGING INTEREST RATES SOME OF THE BIGGEST ISSUERS OF FIXED RATE ANNUITIES BACKED PARTLY BY C. M. O.S ARE I. T. T. CORPORATION'S HARTFORD LIFE INSURANCE COMPANY CONSECO INCORPORATED'S WESTERN NATIONAL LIFE INSURANCE COMPANY BENEFICIAL CORPORATION'S CENTRAL NATIONAL LIFE INSURANCE COMPANY OF OMAHA AND LIFEUSA HOLDING INCORPORATED'S LIFEUSA INSURANCE COMPANY EACH SAYS IT USES C. M. O.S PRUDENTLY AND THAT ITS ANNUITY BUYERS AREN'T AT ANY UNUSUAL RISK I THINK WE HAVE ONE OF THE MOST CONSERVATIVE INVESTMENT PORTFOLIOS IN THE INDUSTRY SAYS DANIEL O'BRIEN PRESIDENT OF CENTRAL NATIONAL IF THE COMPANIES ARE RIGHT INVESTORS WHO BUY THEIR ANNUITIES MAY BE GETTING A GOOD DEAL BUT IF THEY'RE WRONG INVESTORS COULD END UP WITH LESS THAN THEY EXPECT THAT'S BECAUSE INITIAL ANNUITY RATES AREN'T GUARANTEED AFTER A PERIOD OF ONE TO THREE YEARS THE INSURANCE COMPANY IS FREE TO CUT THE RATE TO A GUARANTEED MINIMUM IN OTHER WORDS IF THE INSURER SUFFERS UNEXPECTED LOSSES ON ITS INVESTMENTS IT CAN AND OFTEN DOES PASS THEM THROUGH TO ANNUITY HOLDERS BY DROPPING THEIR RATES OF RETURN OR CREDITING RATES THAT'S A REAL RISK WITH ANNUITIES FROM COMPANIES THAT HAVE GONE THE C. M. O. ROUTE INSURANCE EXPERTS SAY IT COULD REDUCE THEIR CREDITING RATE UNLESS AN INSURER IS ABLE TO MAKE IT UP IN OTHER PARTS OF THE INVESTMENT PORTFOLIO SAYS J. RYAN O'CONNELL AN ANALYST WITH MOODY'S SOME EXPERTS WORRY WHETHER INSURERS THAT BUY C. M. O.S REALLY KNOW WHAT THEY'RE GETTING INTO MANY OF THE INVESTMENT MANAGERS OF INSURANCE COMPANIES THAT WE ANALYZE ARE VERY SURPRISED WHEN THEY FIND OUT WHAT THEIR PORTFOLIOS REALLY LOOK LIKE SAYS MAXWELL BUBLITZ SENIOR VICE PRESIDENT FOR CONSECO CAPITAL MANAGEMENT WHICH MANAGES INVESTMENT PORTFOLIOS FOR INSURERS CORRECTLY ASSESSING C. M. O.S ISN'T AN EASY PROPOSITION EVEN WALL STREET DEALERS WHO SPECIALIZE IN THESE COMPLEX SECURITIES HAVE AT TIMES RUN AFOUL OF THEIR QUIRKS BIG INSURERS CAN HIRE EXPERIENCED PROFESSIONALS AND PAY FOR THE COMPUTER MODELS NEEDED TO FORECAST HOW C. M. O.S WILL BEHAVE IN DIFFERENT INTEREST RATE ENVIRONMENTS MR. BUBLITZ SAYS HOWEVER SMALLER INSURERS RELY HEAVILY ON BROKERAGE FIRMS THAT SELL C. M. O.S AND MAY BE SO TAKEN WITH THEIR HIGH YIELDS THAT THEY LOSE SIGHT OF THE RISKS HE ADDS FOR INSTANCE MOODY'S CITES HOW I. C. H. CORPORATION A LIFE AND HEALTH INSURANCE HOLDING COMPANY IN LOUISVILLE KENTUCKY LOST ONE HUNDRED MILLION DOLLARS IN NINETEEN NINETY TWO AND THIRTY FIVE MILLION DOLLARS IN NINETEEN NINETY THREE WHEN ITS ONE POINT ONE BILLION DOLLARS PORTFOLIO OF C. M. O.S SUFFERED FROM A WAVE OF PREPAYMENTS COASTAL STATES LIFE INSURANCE COMPANY A SMALL INSURER IN GEORGIA WAS SEIZED BY STATE REGULATORS FOR MUCH THE SAME REASON INDEED COASTAL EMBODIES EVERYTHING MOODY'S WARNS ABOUT SINCE IT SOLD ALMOST NOTHING BUT SINGLE PREMIUM FIXED RATE ANNUITIES BACKED ALMOST ENTIRELY BY C. M. O.S IT'S DIFFICULT FOR ANNUITY BUYERS TO TELL WHETHER THEIR INSURER IS MAKING A RISKY BET ON C. M. O.S BUT ONE WAY TO PROTECT ONESELF IS TO BUY ONLY FROM TOP RATED INSURERS ETHAN KRA A MANAGING DIRECTOR WITH CONSULTANT WILLIAM M. MERCER INCORPORATED RECOMMENDS BUYING ONLY FROM CARRIERS RATED DOUBLE A OR HIGHER BY MOODY'S STANDARD AND POOR'S CORPORATION OR DUFF AND PHELPS INVESTORS WHO BUY FROM LOWER RATED CARRIERS SHOULD MAKE SURE THEY EARN A HIGHER THAN AVERAGE RATE HE SAYS THESE DAYS THE MEDIAN RATE FOR ANNUITIES IS FIVE POINT OH FIVE PERCENT ACCORDING TO TOWERS PERRIN A CONSULTING FIRM UNFORTUNATELY BECAUSE C. M. O.S ARE RELATIVELY NEW EVEN INDUSTRY WATCHDOGS SUCH AS RATING AGENCIES AND STATE INSURANCE REGULATORS DON'T FULLY UNDERSTAND THE RISKS INSURANCE EXPERTS SAY BUT MR. BUBLITZ BELIEVES THE AGENCIES ARE MAKING PROGRESS A YEAR AGO I WOULD SAY THEY DIDN'T KNOW WHAT THEY WERE TALKING ABOUT HE SAYS QUOTE NOW I WOULD SAY THEY HAVE COME A LONG WAY QUOTE ONCE THE INVESTOR IS SATISFIED ABOUT AN INSURER'S FINANCIAL STRENGTH HE OR SHE CAN BEGIN TO LOOK AT THE SPECIFICS OF THE ANNUITY CONTRACT AT THIS POINT THE SAME PROCEDURES THAT APPLY TO CHECKING OUT ANY ANNUITY APPLY TO THOSE BACKED BY C. M. O.S INVESTORS SHOULD FIRST CONSIDER THE SURRENDER PERIOD ANNUITIES TYPICALLY CHARGE A PENALTY OF SEVEN PERCENT OF THE INITIAL INVESTMENT IF THE MONEY IS WITHDRAWN IN THE FIRST YEAR THE AMOUNT NORMALLY DECLINES TO NOTHING AFTER THE SEVENTH YEAR IF THERE IS ANY CHANCE OF WANTING TO WITHDRAW THE MONEY IN A LUMP SUM THE INVESTOR SHOULD AVOID ANNUITIES WHERE THE SURRENDER CHARGE NEVER DISAPPEARS INVESTORS SHOULD ALSO KEEP IN MIND THAT THE INITIAL RATE ON THE ANNUITY MIGHT NOT CONTINUE FOR THE LIFE OF THE ANNUITY IF THE RATE SEEMS UNUSUALLY HIGH COMPARED WITH THE COMPETITION THAT SUGGESTS IT MIGHT FALL AFTER THE GUARANTEE PERIOD VERY OFTEN AN UNUSUALLY HIGH RATE IS A TEASER RATE SAYS MR. KRA OF WILLIAM M. MERCER FINALLY INVESTORS SHOULD ASK THEMSELVES WHETHER AN ANNUITY IS AN APPROPRIATE INVESTMENT AS WITH INDIVIDUAL RETIREMENT ACCOUNTS ANNUITY HOLDERS WHO WITHDRAW BEFORE AGE FIFTY NINE AND ONE HALF FACE A TEN PERCENT TAX PENALTY IN ADDITION TO INCOME TAXES ON THE EARNINGS LWT HOLDINGS P. L. C. ESTIMATED ITS NINETEEN NINETY THREE PRETAX PROFIT ROSE FORTY THREE PERCENT TO FORTY THREE POINT EIGHT MILLION POUNDS SIXTY FIVE POINT FOUR MILLION DOLLARS AMID A HOSTILE TAKEOVER BY GRANADA GROUP P. L. C. THE COMPANY IN LONDON SAID THE ESTIMATE EXCLUDES THE COST OF FIGHTING GRANADA'S TAKEOVER LWT SAID IT EXPECTS TO RECOMMEND A FINAL DIVIDEND OF TEN PENCE A SHARE WHICH WOULD BRING LWT'S FULL YEAR DIVIDEND TO FOURTEEN PENCE A SHARE AN INCREASE OF ONE HUNDRED EIGHTY FOUR PERCENT FROM NINETEEN NINETY TWO THE BROADCASTING CONCERN OFFERED THE ESTIMATES AS FURTHER REASONS FOR SHAREHOLDERS TO REJECT GRANADA'S SIX HUNDRED SIXTY MILLION POUND UNSOLICITED TAKEOVER BID GRANADA OWNED SEVENTEEN POINT FIVE PERCENT OF LWT PRIOR TO THE BID THE CHICAGO BOARD OF TRADE ONE OF THE ORIGINAL PARTNERS IN THE GLOBEX AFTER HOURS ELECTRONIC FUTURES TRADING SYSTEM APPEARS POISED TO LEAVE THE SYSTEM IN APRIL A RIFT HAS DEVELOPED BETWEEN THE C. B. O. T. AND THE OTHER TWO PARTNERS IN GLOBEX THE CHICAGO MERCANTILE EXCHANGE AND REUTERS HOLDINGS P. L. C. AND IT SEEMS TO BE WIDENING FOR EXAMPLE OFFICIALS OF THE C. M. E. AND REUTERS WILL MEET IN CHICAGO TOMORROW TO DISCUSS THE FUTURE OF THE GLOBEX SYSTEM BUT BECAUSE OF DIFFERENCES WITH THE C. M. E. AND REUTERS C. B. O. T. EXECUTIVES WON'T BE AT THE MEETING GLOBEX IS THE BIGGEST AND MOST AMBITIOUS EFFORT EVER TO CREATE A COMPUTERIZED GLOBAL TRADING LINK BETWEEN FINANCIAL EXCHANGES BUT ITS LOW TRADING VOLUME HAS BEEN A DISAPPOINTMENT DEVELOPED BY REUTERS IN PARTNERSHIP WITH CHICAGO'S TWO BIG FUTURES MARKETS IT HAS COST REUTERS MORE THAN EIGHTY MILLION DOLLARS AND STILL IS FAILING TO ATTRACT ENOUGH TRADING VOLUME TO PAY ITS OPERATING EXPENSES QUOTE REUTERS HAS MADE IT QUITE CLEAR THAT THEY DO NOT WANT TO CONTINUE ON GLOBEX AS IT IS CURRENTLY COMPOSED QUOTE SAID JOHN F. SANDNER CHAIRMAN OF BOTH THE C. M. E. AND GLOBEX ITSELF WE'RE MEETING TO STRUCTURE A NEW MODEL FOR GLOBEX SO THAT REUTERS WILL AGREE TO KEEP THE SYSTEM IN BUSINESS THE REASON FOR THE C. B. O. T.'S EXCLUSION FROM THE GLOBEX TALKS MR. SANDNER SAID IS THAT THE C. B. O. T. WON'T AGREE TO CONDITIONS REUTERS HAS STIPULATED FOR THE GLOBEX SYSTEM IN THE FUTURE BOB CROOK A SPOKESMAN FOR REUTERS IN NEW YORK DECLINED TO COMMENT MR. SANDNER HAS PROPOSED RESTRUCTURING GLOBEX IN AN EFFORT TO RESHAPE GLOBEX BY APRIL WHEN REUTERS HAS THE RIGHT TO TERMINATE THE SYSTEM IF ITS TRADING VOLUME IS LESS THAN FIFTY THOUSAND FUTURES CONTRACTS A DAY AT PRESENT AVERAGE DAILY VOLUME ON GLOBEX IS ABOUT THIRTY THOUSAND CONTRACTS MR. SANDNER'S PLAN CALLS FOR ALL EXCHANGES PARTICIPATING IN GLOBEX TO ABANDON DEVELOPMENT OF ELECTRONIC SYSTEMS THAT COULD COMPETE WITH GLOBEX THE PLAN ALSO CALLS FOR SEAMLESS TRADING A BUZZWORD THAT MEANS PARTICIPATING EXCHANGES WOULD HAVE TO OFFER THEIR FUTURES CONTRACTS ON GLOBEX FOR AT LEAST TWELVE HOURS A DAY WHEN THEIR OWN MARKETS ARE CLOSED BOTH OF THESE REQUIREMENTS ARE PROBLEMATIC FOR THE CHICAGO BOARD OF TRADE THE C. B. O. T. IS DEVELOPING A LOCAL ELECTRONIC TRADING SYSTEM CALLED PROJECT A THAT POTENTIALLY COULD COMPETE WITH GLOBEX THE EXCHANGE ALSO RUNS AN EVENING TRADING SESSION THAT CONFLICTS WITH THE SEAMLESS TRADING PROVISION OF MR. SANDNER'S PLAN TO PARTICIPATE IN GLOBEX UNDER MR. SANDNER'S SCHEME THE C. B. O. T. LIKELY WOULD HAVE TO SCRAP BOTH OF THESE INITIATIVES IN A STATEMENT RELEASED YESTERDAY C. B. O. T. CHAIRMAN PATRICK H. ARBOR SAID TRADERS AT HIS EXCHANGE SIMPLY ARE NOT IN A POSITION TO CAVE IN TO NEW DEMANDS FROM REUTERS AND THE C. M. E. AND IN A NEWS CONFERENCE LAST WEEK BOTH MR. ARBOR AND C. B. O. T. PRESIDENT THOMAS DONOVAN ACKNOWLEDGED THAT IT IS POSSIBLE THE C. B. O. T. WILL LEAVE GLOBEX WHEN THE CURRENT CONTRACT FOR THE SYSTEM ENDS IN APRIL THE C. B. O. T. TRADES FUTURES AND OPTIONS CONTRACTS BASED ON U. S. TREASURY BONDS AS WELL AS CONVENTIONAL COMMODITIES SUCH AS CORN AND SOYBEANS ALTHOUGH THESE CONTRACTS GENERATE HUGE TRADING VOLUME DURING REGULAR TRADING HOURS AT THE C. B. O. T. THEY TRADE AT A PACE OF ONLY ABOUT ONE THOUSAND CONTRACTS A DAY ON GLOBEX AFTER NEARLY TWO MONTHS OF FLOUNDERING JAPAN'S RULING COALITION IS INCREASINGLY CONFIDENT OF WINNING FINAL APPROVAL OF SWEEPING ELECTORAL REFORMS THIS MONTH TALK OF SNAP ELECTIONS AND PENDING POLITICAL CHAOS IS RECEDING THAT'S A WELCOME MOOD CHANGE FOR JAPAN'S JITTERY FINANCIAL MARKETS AND FOR THE CLINTON ADMINISTRATION WHICH HAS GROWN INCREASINGLY WORRIED THAT ON GOING BILATERAL TRADE NEGOTIATIONS COULD GET STUCK IN TOKYO'S DOMESTIC QUAGMIRE SUCCESS ISN'T YET GUARANTEED BUT ANALYSTS AND POLITICIANS EVEN MANY OPPOSITION LEADERS SAY THE ODDS HAVE RISEN SHARPLY IN THE PAST WEEK THE BILLS ARE AIMED AT CURBING POLITICAL CORRUPTION AND REWRITING THE ELECTORAL MAP QUOTE THE CLIMATE IS CHANGING QUOTE SAID YUJI TSUSHIMA A SENIOR MEMBER OF THE OPPOSITION LIBERAL DEMOCRATIC PARTY WHICH HAS BEEN TRYING TO BLOCK THE BILLS REFORM HAS A GOOD CHANCE A BIG REASON IS THAT THE L. D. P.'S CAMPAIGN TO DISCREDIT PRIME MINISTER MORIHIRO HOSOKAWA APPEARS TO HAVE FIZZLED WITH THE ECONOMY WEAKENING AND THE STOCK MARKET FALLING L. D. P. LEADERS TRIED TO ARGUE THAT POLITICAL REFORM SHOULD WAIT UNTIL AFTER EMERGENCY ECONOMIC MEASURES WERE DRAFTED AND THAT MR. HOSOKAWA WAS TOO INEXPERIENCED TO HANDLE THAT THEY USED SUCH LOGIC IN DECEMBER TO GRIND PARLIAMENTARY BUSINESS TO A HALT BUT WHEN L. D. P. MEMBERS VISITED THEIR HOME DISTRICTS OVER THE NEW YEAR HOLIDAY MANY WERE CRITICIZED BY CONSTITUENTS WE THOUGHT THAT IF WE INSIST ON FISCAL MEASURES FIRST THE PEOPLE WOULD AGREE WITH US SAID TETSUO KONDO A FORMER CABINET MINISTER UNDER THE L. D. P. BUT EVEN OUR BUSINESS FRIENDS WHO THINK ECONOMIC MEASURES ARE MORE IMPORTANT THAN POLITICAL REFORM APPEAR TO HAVE CHANGED THEIR MIND THEY SAY FIRST PASS REFORM THEN DISCUSS THE BUDGET THE L. D. P. HAD BOYCOTTED EARLIER PARLIAMENTARY DEBATES OVER REFORM BUT IS NOW ATTENDING SUCH SESSIONS L. D. P. LEADERS WHO HAD REFUSED TO DISCUSS THE MATTER WITH THE RULING COALITION NOW SAY THEY ARE DRAFTING THEIR OWN COMPROMISE PROPOSALS THE GOVERNMENT THIS WEEK DECIDED TO SCHEDULE A FINAL VOTE ON THE BILLS IN PARLIAMENT'S UPPER HOUSE AS SOON AS NEXT WEEK AND EVEN HOPES TO GET SOME L. D. P. BACKING THE BILLS PASSED THE LOWER HOUSE IN NOVEMBER THE BIGGEST QUESTION REMAINS THE SOLIDARITY OF THE SOCIALIST PARTY WHICH IS THE LARGEST BUT MOST UNSTABLE BLOC IN THE RULING COALITION THE PARTY DECIDED AT ITS ANNUAL CONVENTION TUESDAY TO CONTINUE SUPPORTING MR. HOSOKAWA BUT THE SENTIMENT WASN'T UNANIMOUS WITH SOME MEMBERS FREQUENTLY JEERING THE LEADERSHIP SOME SOCIALISTS FEAR THAT BY JOINING THE COALITION THEY HAVE SACRIFICED MANY OF THE PARTY'S PRINCIPLES AND THAT THE PROPOSED REFORMS WILL FURTHER WEAKEN THE PARTY STILL EVEN WITHIN THE SOCIALISTS THE SPIRIT SEEMS TO HAVE CHANGED A MONTH AGO SOME ANALYSTS WERE SAYING AS MANY AS TWENTY SOCIALISTS WOULD VOTE AGAINST THE REFORMS MAKING PASSAGE UNLIKELY NOW THE CONVENTIONAL WISDOM IS THAT AS FEW AS FIVE WILL IN THE END DEFY THEIR LEADERS TOSHIKO SHINOZAKI A SOCIALIST MEMBER OF THE UPPER HOUSE SAID SHE PERSONALLY OPPOSES THE BILLS BUT IS NOW STRONGLY CONSIDERING VOTING FOR THEM WE ARE TRYING NOT TO BREAK UP THE COALITION SHE EXPLAINED THE CLINTON ADMINISTRATION PROPOSED EXEMPTING TELECOMMUNICATIONS COMPANIES FROM SOME STATE AND LOCAL REGULATIONS IF THEY SET UP VIDEO AND INFORMATION NETWORKS THAT ARE OPEN TO ALL PROGRAMMING UNDER THE PLAN UNVEILED IN A SPEECH HERE BY VICE PRESIDENT AL GORE CABLE TELEVISION COMPANIES AND LOCAL TELEPHONE COMPANIES THAT VENTURE INTO EACH OTHER'S BUSINESSES COULD OPT OUT OF THE CURRENT JUMBLE OF LOCAL STATE AND FEDERAL REGULATIONS FOR THEIR SEPARATE INDUSTRIES INSTEAD THEY WOULD BE GOVERNED BY A UNIFORM NEW SET OF REGULATIONS CALLED TITLE SEVEN THE FEDERAL COMMUNICATIONS COMMISSION WOULD ADOPT GUIDELINES FOR REGULATION UNDER THE NEW SECTION OF TELECOMMUNICATIONS LAW WHILE PROMISING SIMILAR REGULATORY TREATMENT FOR TELEPHONE AND CABLE T. V. COMPANIES THAT MOVE INTO EACH OTHER'S BUSINESSES MR. GORE'S LONG AWAITED SPEECH TO ENTERTAINMENT EXECUTIVES LEFT VAGUE JUST HOW TITLE SEVEN WOULD WORK ADMINISTRATION OFFICIALS SAID AFTERWARD THAT THE F. C. C. WOULD HAVE TO FIGURE OUT JUST WHO WOULD BE ELIGIBLE AND WHO WOULD POLICE THE NEW SERVICES JUDGING FROM A QUOTE WHITE PAPER QUOTE THE ADMINISTRATION RELEASED WITH THE SPEECH STATE AND LOCAL REGULATORS WOULD CONTINUE TO PLAY A ROLE BUT THEY WOULD HAVE TO ADHERE TO THE F. C. C.'S GUIDELINES MITCHELL KAPOR FOUNDER OF LOTUS DEVELOPMENT CORPORATION AND CHAIRMAN OF THE ELECTRONIC FRONTIER FOUNDATION SAID THE NEW SERVICES COULD BE VIDEO VERSIONS OF INTERNET A NETWORK ON WHICH SUBSCRIBERS CAN POST AND RETRIEVE TEXT MESSAGES WHILE NO COMPANY CURRENTLY PROVIDES THAT LEVEL OF ACCESS TO COMMUNITY GROUPS AND OTHER WOULD BE VIDEO PROGRAMMERS MR. KAPOR SAID BELL ATLANTIC CORPORATION AND PACIFIC TELESIS GROUP ARE MOVING IN THAT DIRECTION STILL EVEN THOSE COMPANIES' LEADERS WHO ATTENDED YESTERDAY'S SPEECH SEEMED BAFFLED BY THE TITLE SEVEN CONCEPT NONE OF US REALLY KNOW WHAT THAT'S ALL ABOUT SAID RAYMOND SMITH CHIEF EXECUTIVE OFFICER OF BELL ATLANTIC WE DON'T KNOW ALL THAT'S BEING SUGGESTED PHILIP J. QUIGLEY INCOMING CHIEF EXECUTIVE OF PACIFIC TELESIS SAID BUT WE'RE GOING TO EXPLORE WHATEVER TITLE SEVEN IS THE SPEECH WAS PART OF A DAYLONG SUPERHIGHWAY SUMMIT SPONSORED BY THE ACADEMY OF TELEVISION ARTS AND SCIENCES AND SPRINKLED WITH HOLLYWOOD GLITZ HIGHPOWERED HOLLYWOOD EXECUTIVES SUCH AS RUPERT MURDOCH CHAIRMAN OF NEWS CORPORATION AND MICHAEL D. EISNER CHAIRMAN OF WALT DISNEY COMPANY ATTENDED TRADING GIBES ABOUT THEIR LATEST VENTURES TALK SHOW HOST DICK CAVETT HOSTED ONE PANEL DISCUSSION AND ACTRESS LILY TOMLIN APPEARED ON CUE IN HER TELEPHONE OPERATOR GET UP TO JOIN MR. GORE ON STAGE AFTER HE MADE REFERENCE TO THE WHITE HOUSE'S ANTIQUATED SWITCHBOARD IN HIS SPEECH THE VICE PRESIDENT SAID THE F. C. C. WOULD BE GIVEN THE POWER TO REDUCE REGULATION FOR TELECOMMUNICATIONS CARRIERS IN MARKETS THAT ARE COMPETITIVE THE NINETEEN NINETY TWO CABLE ACT PROVIDED THAT CABLE COMPANIES COULD BE EXEMPT FROM RATE REGULATION IF THEY FACE COMPETITION MR. GORE APPEARED TO EXTEND THE PRINCIPLE TO TELEPHONE SERVICE AS WELL BUT HE TOOK ONLY SMALL STEPS TOWARD TAKING POSITIONS ON THE TOUGH ISSUES FACING LAWMAKERS AS THEY ATTEMPT TO RESTRUCTURE TELECOMMUNICATIONS LAWS TO MAKE IT EASIER FOR CABLE T. V. TELEPHONE AND LONG DISTANCE COMPANIES TO COMPETE AGAINST ONE ANOTHER FOR EXAMPLE MR. GORE CHALLENGED TELECOMMUNICATIONS COMPANIES TO CONNECT ALL CLASSROOMS HOSPITALS LIBRARIES AND CLINICS TO THE SO CALLED INFORMATION SUPERHIGHWAY BY THE YEAR TWO THOUSAND AND HE PRAISED BELL ATLANTIC CORPORATION AND TELE COMMUNICATIONS INCORPORATED FOR PLEDGING MONDAY TO WIRE SCHOOLS FREE BUT HE AGAIN DEFERRED DECISIONS ON DETAILS OF HOW TO ENSURE AFFORDABLE SERVICE FOR ALL AMERICANS INSTEAD THE WHITE PAPER SAID THE ADMINISTRATION WOULD ESTABLISH A FEDERAL STATE BOARD TO MAKE RECOMMENDATIONS ON UNIVERSAL SERVICE THE ADMINISTRATION ALSO HEDGED ON THE QUESTION OF CROSS OWNERSHIP MR. GORE SAID IT GENERALLY WON'T ALLOW TELEPHONE COMPANIES TO BUY CABLE COMPANIES IN THEIR OWN SERVICE AREAS BUT THE WHITE PAPER RELEASED YESTERDAY SAID THE F. C. C. EVENTUALLY COULD ALLOW SUCH TRANSACTIONS IF THERE'S ENOUGH COMPETITION IT DIDN'T INDICATE HOW THAT WOULD BE MEASURED THOUGH MR. GORE ALSO SAID THE ADMINISTRATION'S PLAN WOULD PRE EMPT STATE REGULATIONS THAT KEEP CABLE COMPANIES OUT OF LOCAL TELEPHONE SERVICE BUT ASKED ABOUT THAT ISSUE JUST LAST WEEK COMMERCE SECRETARY RON BROWN SAID THAT PRESIDENT CLINTON A FORMER GOVERNOR QUOTE GETS NERVOUS QUOTE ABOUT THE IDEA OF PRE EMPTING STATE REGULATIONS INDUSTRY REACTION TO THE SPEECH WAS GENERALLY FAVORABLE BUT INDUSTRY REPRESENTATIVES SAID THEY STILL NEED TO SEE MORE DETAILS A LOT OF THIS IS JUST IDLE PATTER UNTIL THEY FILE THE BILL SAID PETER BERNSTEIN A TELECOMMUNICATIONS ANALYST WITH PROBE RESEARCH WE APPLAUD THE CLINTON ADMINISTRATION'S COMMITMENT TO REGULATORY SYMMETRY IN ITS APPROACH TO DIFFERENT SEGMENTS OF THE TELECOMMUNICATIONS INDUSTRY A SPOKESMAN FOR THE REGIONAL TELEPHONE COMPANIES SAID THE SPOKESMAN SAID CURRENT RULES SHOULD BE CHANGED IMMEDIATELY THE NATIONAL CABLE TELEVISION ASSOCIATION ALSO PRAISED THE SPEECH BUT REPEATED THAT THE ENTRY OF BABY BELLS INTO CABLE T. V. SHOULD BE CAREFULLY STAGED BECAUSE OF THE GREATER FINANCIAL STRENGTH OF THE TELEPHONE COMPANIES THE CABLE T. V. INDUSTRY HAS CALLED FOR A GRACE PERIOD OF ABOUT SEVEN YEARS MR. GORE DIDN'T TAKE A SIDE ON THAT ISSUE BUT DID CONVEY SOME SYMPATHY FOR THE CABLE INDUSTRY'S POSITION A STARTUP TELEPHONE COMPANY ISN'T THE SAME AS A BABY BELL HE SAID QUOTE WHAT WE FAVOR IS GENUINE REGULATORY SYMMETRY QUOTE THE VICE PRESIDENT SAID THE ADMINISTRATION WILL FILE LEGISLATION IN SHORT ORDER ADMINISTRATION OFFICIALS INSISTED DIFFERENT INDUSTRY GROUPS AREN'T FAR APART ON THE REMAINING ISSUES THOUGH THEY HAVE BEEN FIGHTING OVER SIMILAR ISSUES FOR A DECADE THE OFFICIALS ALSO INSISTED THAT THE TELECOMMUNICATIONS INITIATIVE WON'T GET LOST AMONG THE CLINTON ADMINISTRATION'S OTHER REFORM EFFORTS WHICH INCLUDE HEALTH CARE AND WELFARE PROGRAMS THEY SAID PROMOTING A NATIONAL INFORMATION INFRASTRUCTURE AS THE ADMINISTRATION PUTS IT WILL HELP REDUCE HEALTH CARE COSTS BY MAKING NEW HEALTH CARE INFORMATION SERVICES AVAILABLE STILL THE ADMINISTRATION HAS TAKEN CARE NOT TO OFFEND LEGISLATORS WHO HAVE ALREADY FILED TELECOMMUNICATIONS REFORM BILLS MR. GORE SAID HE ENDORSES BASIC PRINCIPLES OF A BILL FILED LAST MONTH BY REPRESENTATIVES JACK BROOKS D. TEXAS AND JOHN DINGELL D. MICHIGAN TO LET THE BELL COMPANIES OFFER LONG DISTANCE AND INFORMATION SERVICES THE ADMINISTRATION ALSO SAID IT SUPPORTS ALLOWING BABY BELL COMPANIES TO MANUFACTURE EQUIPMENT THROUGH SEPARATE SUBSIDIARIES ENTREPRENEURS' NEEDS FOR IDEAS AND CAPITAL CAN MAKE THEM EASY PREY FOR VETERAN CRIMINALS THAT'S WHAT ALLEGEDLY HAPPENED TO BRUCE ARTHUR A REDONDO BEACH CALIFORNIA ENTREPRENEUR LOOKING FOR FINANCING FOR A HAZARDOUS WASTE BUSINESS MR. ARTHUR WAS VERY IMPRESSED BY C. EARL BROWN'S BUSINESS ACUMEN WHEN IT CAME TO TALKING FINANCE RECALLS MR. ARTHUR MR. BROWN QUOTE WAS PROBABLY THE SMARTEST GUY I EVER MET QUOTE SO IMPRESSED WAS MR. ARTHUR THAT HE PAID MR. BROWN AND A COLLEAGUE NINETEEN THOUSAND DOLLARS LAST YEAR TO HELP HIM SECURE ONE POINT TWO MILLION DOLLARS HOWEVER ACCORDING TO AN INDICTMENT FILED LAST WEEK IN A SAINT LOUIS FEDERAL COURT MR. BROWN AND THREE OTHER MEN DEFRAUDED MR. ARTHUR AND TWO DOZEN OTHER ENTREPRENEURS OF MORE THAN TWO HUNDRED THIRTY THOUSAND DOLLARS BY MAKING FALSE PROMISES TO HELP THEM ARRANGE BUSINESS FINANCING THREE OF THE FOUR DEFENDANTS INCLUDING MR. BROWN HAVE PLEADED NOT GUILTY THE FOURTH HASN'T ENTERED A PLEA AND HIS ATTORNEY DECLINED TO COMMENT THE ALLEGED FRAUD WAS BASED IN SAINT LOUIS MR. ARTHUR AND OTHER ENTREPRENEURS WEREN'T DUPED BY ROOKIES LAW ENFORCEMENT OFFICIALS SAY MR. BROWN AND TWO OTHER DEFENDANTS JOEL GINSBURG AND WILLIAM FOX HAVE CRIMINAL RECORDS DATING BACK MORE THAN TWENTY YEARS THESE OFFICIALS SAY EACH MAN HAS BEEN CONVICTED AT LEAST ONCE FOR FINANCIAL CRIMES THE SAINT LOUIS INDICTMENT SUGGESTS HOW VETERAN SCAMMERS CAN REPEATEDLY BILK OWNERS OF SMALL BUSINESSES LAW ENFORCEMENT OFFICIALS AND OTHERS SAY CAREER CROOKS ACCOUNT FOR A SIGNIFICANT PORTION OF THE HUNDREDS OF MILLIONS OF DOLLARS LOST ANNUALLY BY VICTIMS OF WHITE COLLAR CRIME BUT THE CASE ALSO SUGGESTS THAT SAVVY ENTERPRENEURS CAN PROTECT THEMSELVES ENTREPRENEURS ARE A RIPE GROUP FOR CROOKS SETTING UP REPEAT SCAMS SAYS SHIRLEY ROOKER PRESIDENT OF CALL FOR ACTION INCORPORATED A NONPROFIT WATCHDOG GROUP IN WASHINGTON D. C. SMALL BUSINESS OWNERS OFTEN LACK TIME TO THOROUGHLY CHECK OUT PEOPLE WITH WHOM THEY DO BUSINESS EXPERTS NOTE ONE POPULAR SMALL BUSINESS FRAUD IS THE ADVANCE FEE LOAN SCHEME WHICH ALLEGEDLY OCCURRED TO MR. ARTHUR IN SUCH A SCAM ENTREPRENEURS PAY PROMOTERS TO GET LOANS THAT NEVER MATERIALIZE ANOTHER FRAUD INVOLVES THE SALE OF BOGUS BUSINESS OPPORTUNITIES FOR A FEE A PROMOTER PROMISES TO SET UP A WOULD BE ENTREPRENEUR IN A HOT NEW VENTURE BUT NEVER INTENDS TO DELIVER THE FLORIDA ATTORNEY GENERAL'S OFFICE IS INVESTIGATING A BUSINESS OPPORTUNITY VENTURE KNOWN AS NAKAMOTO INDUSTRIES INCORPORATED OF MIAMI ACCORDING TO A SUBPOENA FILED IN SEPTEMBER BY STATE OFFICIALS IN A BROWARD COUNTY COURT NAKAMOTO SOLD DISTRIBUTORSHIPS FOR PORTABLE HEART MONITORING MACHINES DURING NINETEEN NINETY TWO AND NINETEEN NINETY THREE MORE THAN A DOZEN ENTREPRENEURS NATIONWIDE PAID THE FIRM A TOTAL OF MORE THAN ONE HUNDRED THOUSAND DOLLARS SEVERAL HAVE COMPLAINED TO STATE INVESTIGATORS THAT NAKAMOTO FAILED TO FULFILL PROMISES TO SUPPLY EQUIPMENT TRAINING AND ASSISTANCE I NEVER GOT ANYTHING BUT GRIEF FOR MY TWELVE THOUSAND FIVE HUNDRED DOLLARS SAYS ROBERT MOTLEY A JACKSONVILLE FLORIDA ENTERPRENEUR THE ENTREPRENEURS AND STATE INVESTIGATORS SAY THEY BELIEVE THE PRIME MOVER BEHIND NAKAMOTO WAS ALAN B. NACHAMIE WHO OPERATED UNDER THE NAME DOCTOR ALAN BARTON MR. NACHAMIE WAS A NEW YORK CHIROPRACTOR UNTIL HIS LICENSE WAS REVOKED IN NINETEEN EIGHTY TWO FOLLOWING FEDERAL AND STATE CONVICTIONS FOR MEDICARE FRAUD AND CONSPIRACY TO BURN DOWN TWO MEDICAL BUILDINGS AS PART OF AN INSURANCE SCAM ACCORDING TO DOCUMENTS FILED WITH NEW YORK'S DIVISION OF PROFESSIONAL LICENSING SERVICES MR. NACHAMIE DIDN'T RETURN CALLS SEEKING COMMENT EDWIN TUNICK NAKAMOTO'S SECRETARY AND TREASURER SAYS THE FIRM IS HONEST BUT HAS HAD BUSINESS PROBLEMS AND IS TRYING TO REORGANIZE HE SAYS IT IS COOPERATING WITH FLORIDA INVESTIGATORS BUT THE RELATIVELY SMALL AMOUNT OF INVESTOR MONEY INVOLVED COULD HAMPER PROSECUTION OF NAKAMOTO SAY PEOPLE FAMILIAR WITH THE INVESTIGATION IN THE SAINT LOUIS INDICTMENT OF MESSRS BROWN GINSBURG AND FOX FEDERAL PROSECUTORS ALSO WERE INITIALLY LUKEWARM BECAUSE OF THE RELATIVELY SMALL AMOUNT OF MONEY INVOLVED SAYS AN INDIVIDUAL FAMILIAR WITH THAT CASE THIS INDIVIDUAL SAYS INTEREST PERKED UP WHEN INVESTIGATORS LEARNED OF THE THREE DEFENDANTS' CRIMINAL BACKGROUNDS MR. BROWN'S CRIMINAL RECORD GOES BACK TO THE EARLY NINETEEN SEVENTIES WITH THE INFAMOUS BANK OF SARK A PHONY OFFSHORE INSTITUTION THAT CHURNED OUT MILLIONS OF DOLLARS OF WORTHLESS FINANCIAL DOCUMENTS MR. BROWN AND MR. FOX WERE INDICTED FOR FRAUD BY A SAINT LOUIS FEDERAL COURT ALONG WITH PHILIP M. WILSON A CENTRAL FIGURE IN THE BOGUS BANK MR. BROWN AND MR. WILSON PLEADED GUILTY TO CONSPIRACY AND MAIL FRAUD CHARGES CHARGES AGAINST MR. FOX WERE DISMISSED THE THREE MEN RESURFACED TOGETHER IN NINETEEN NINETY WHEN A FLORIDA STATE COURT IN BROWARD COUNTY CONVICTED THEM IN CONNECTION WITH AN ADVANCE FEE LOAN SCHEME INVOLVING NUMEROUS SMALL BUSINESSES MR. BROWN RECEIVED PROBATION AND MESSRS FOX AND WILSON PRISON SENTENCES BOTH HAVE BEEN RELEASED LAW ENFORCEMENT OFFICIALS SAY MR. GINSBURG A DEFENDANT IN THE SAINT LOUIS INDICTMENT HAS TWO CRIMINAL CONVICTIONS OFFICIALS SAY THE MOST RECENT IN NINETEEN EIGHTY WAS FOR WIRE FRAUD IN CONNECTION WITH A U. S. SMALL BUSINESS ADMINISTRATION LOAN SCAM MR. GINSBURG SENTENCED TO UP TO THREE YEARS IN PRISON WAS RELEASED IN NINETEEN EIGHTY TWO IN THE SAINT LOUIS CASE THE DEFENDANTS ADVERTISED IN NEWSPAPERS INCLUDING THE WALL STREET JOURNAL AND OFTEN USED ALIASES WHEN POSING AS WELL HEELED INVESTORS ACCORDING TO THE CRIMINAL INDICTMENT A JOURNAL SPOKESMAN SAID HE WASN'T FAMILIAR WITH THE SPECIFICS OF THE CASE BUT ADDED THAT THE PAPER'S POLICY IS TO MAKE EVERY EFFORT TO ENSURE THE ACCURACY AND HONESTY OF ADS IT PUBLISHES APPARENTLY THE DEFENDANTS DIDN'T ALWAYS ASK FOR BIG ADVANCE FEES FOR ARRANGING FINANCING MICHAEL DYSON OF DURANT OKLAHOMA RECALLS MR. BROWN SAYING THAT HE WAS WILLING TO WORK FOR A FEW HUNDRED DOLLARS OF EXPENSES UNTIL MR. DYSON SECURED THE TEN MILLION DOLLARS NEEDED FOR A PROPOSED REAL ESTATE DEVELOPMENT BUT MR. DYSON ENDED UP PAYING MORE THAN SIX THOUSAND DOLLARS IN EXPENSES AND FEES WITHOUT LANDING THE FINANCING THE INDICTMENT ALLEGES THEY SUCKED ME IN MR. DYSON SAYS DEAN RESKEVICH AN INDIANAPOLIS ENTREPRENEUR SAYS HE RECOVERED ABOUT HALF OF THE TWELVE THOUSAND DOLLARS HE PAID SOME OF THE DEFENDANTS AFTER DEMANDING RECEIPTS FOR PURPORTED TRAVEL EXPENSES AND FINDING DISCREPENCIES CONCERNING THE CITIES WHERE THEY CLAIMED TO BE ON CERTAIN DAYS MR. RESKEVICH SAYS HE NEEDED ONE MILLION DOLLARS TO REFINANCE HIS SMALL TELECOMMUNICATIONS BUSINESS BESIDES SEEKING DOCUMENTATION ENTREPRENEURS CAN TAKE OTHER STEPS TO PROTECT THEMSELVES AGAINST BEING DEFRAUDED BY VETERAN CRIMINALS LAW ENFORCEMENT OFFICIALS SAY FOR EXAMPLE A NATIONAL COMPUTER DATABASE CALLED THE CENTRAL REGISTRATION DEPOSITORY LISTS ABOUT FOUR HUNDRED THOUSAND INDIVIDUALS INVOLVED IN SECURITIES AND OTHER FINANCIAL ARENAS SAYS SCOTT STAPF INVESTOR EDUCATION DIRECTOR FOR THE NORTH AMERICAN SECURITIES ADMINISTRATORS ASSOCIATION A WASHINGTON GROUP THAT REPRESENTS STATE REGULATORS THE DATABASE INCLUDES EXTENSIVE FILES ON CRIMINAL AND CIVIL ACTIONS MANY STATE SECURITIES OFFICES WILL SEARCH THE DATABASE FOR FREE MR. STAPF CONTINUES IF YOU ARE DEALING WITH SOMEONE WHO IS A SWINDLER YOU COULD FIND THAT OUT VERY QUICKLY AFTER SIX STRAIGHT GAINS AND FOUR RECORDS THE DOW JONES INDUSTRIAL AVERAGE FINALLY MOVED LOWER AS INVESTORS LOCKED IN PROFITS THE INDUSTRIAL AVERAGE FELL FIFTEEN POINT TWO OH OR ZERO POINT THREE NINE PERCENT TO THREE THOUSAND EIGHT HUNDRED FIFTY POINT THREE ONE ITS FIRST DECLINE THIS YEAR EVEN WITH THE LOSS THE AVERAGE WHICH SURGED NEARLY FORTY FIVE POINTS MONDAY IS STILL UP NINETY SIX POINTS OR TWO POINT SIX PERCENT YEAR TO DATE QUOTE WE CERTAINLY HAVE NEEDED A PAUSE IN THE UPTREND AND I WOULD HOPE THERE ARE A FEW MORE DAYS OF CONSOLIDATION TO COME QUOTE SAID TRUDE LATIMER A VICE PRESIDENT AT WAYNE GRAYSON CAPITAL RUNNING TOO FAR TOO FAST CAN LEAVE THE MARKET VULNERABLE TO A STEEP SLIDE SHE SAID BROAD BASED INDEXES ALSO RETREATED AND DECLINING STOCKS LED ADVANCERS ONE THOUSAND ONE HUNDRED FORTY FIVE TO ONE THOUSAND FOUR ON THE NEW YORK STOCK EXCHANGE VOLUME ON THE BIG BOARD TOPPED THREE HUNDRED MILLION FOR A SIXTH STRAIGHT SESSION TOTALING THREE HUNDRED FOUR MILLION SIX HUNDRED FOURTEEN THOUSAND EIGHT HUNDRED SEVENTY DOWN FROM MONDAY'S THREE HUNDRED SEVENTEEN MILLION FIVE HUNDRED NINETY EIGHT THOUSAND TWO HUNDRED ANALYSTS SAID THERE WASN'T ANY NEWS TO TRIGGER THE PROFIT TAKING WHICH CAME DESPITE SOLID ACTION IN THE BOND MARKET CYCLICAL ISSUES WHICH LED THE RALLY OVER THE PAST SEVERAL DAYS REMAINED STEADY AMID THE GENERAL SELLING BIG GROWTH ISSUES SUCH AS CONSUMER PRODUCTS MAKERS AND DRUG COMPANIES WERE AMONG THE WEAKEST WHILE MINNESOTA MINING AND MANUFACTURING JUMPED ONE AND THREE QUARTERS TO ONE HUNDRED NINE AND THREE QUARTERS AND CATERPILLAR INCHED UP ONE EIGHTH TO NINETY AND FIVE EIGHTHS COCA COLA FELL FIVE EIGHTHS TO FORTY TWO AND THREE QUARTERS PHILIP MORRIS SLIPPED FIVE EIGHTHS TO FIFTY EIGHT AND THREE EIGHTHS PROCTER AND GAMBLE EASED THREE EIGHTHS TO FIFTY EIGHT AND ONE HALF AND MERCK AND COMPANY DROPPED THREE EIGHTHS TO THIRTY SEVEN AND ONE QUARTER THOMAS MCMANUS A MARKET STRATEGIST AT MORGAN STANLEY AND COMPANY SAID THE BUOYANCY OF THE ECONOMICALLY SENSITIVE STOCKS RELATIVE TO CONSUMER PRODUCT ORIENTED GROWTH ISSUES REFLECTS INVESTORS' BELIEF THAT CYCLICALS HAVE HAD THE STRONGEST EARNINGS GROWTH BEGINNING NEXT WEEK AND CONTINUING THROUGH EARLY FEBRUARY INVESTORS WILL BE SWAMPED WITH PROFIT REPORTS FOR THE FOURTH QUARTER THE STANDARD AND POOR'S FIVE HUNDRED STOCK INDEX LOST ONE POINT ONE FOUR OR ZERO POINT TWO FOUR PERCENT TO FOUR HUNDRED SEVENTY FOUR POINT ONE THREE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DECLINED ZERO POINT FIVE ZERO OR ZERO POINT ONE NINE PERCENT TO TWO HUNDRED SIXTY TWO POINT TWO SIX AND THE DOW JONES EQUITY MARKET INDEX SLIPPED ZERO POINT NINE FIVE OR ZERO POINT TWO ONE PERCENT TO FOUR HUNDRED FORTY EIGHT POINT SEVEN TWO ALL THREE HAD SET RECORDS MONDAY THERE WERE ONE THOUSAND ONE HUNDRED FORTY FIVE DECLINERS AND ONE THOUSAND FOUR ADVANCERS THE NASDAQ COMPOSITE INDEX EASED ONE POINT ONE SEVEN OR ZERO POINT ONE FIVE PERCENT TO SEVEN HUNDRED EIGHTY FIVE POINT FIVE TWO HURT BY SLUMPING TECHNOLOGY COMMUNICATIONS HEALTH CARE AND TRANSPORTATION ISSUES THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX THOUGH ADVANCED ZERO POINT FIVE NINE OR ZERO POINT ONE TWO PERCENT TO FOUR HUNDRED SEVENTY NINE POINT THREE SEVEN SHARES OF THE MAJOR AUTO MAKERS WERE HIGHER AGAIN FORD MOTOR JUMPED ONE TO SIXTY EIGHT AND ONE QUARTER AND CHRYSLER GAINED SEVEN EIGHTHS TO FIFTY NINE AND FIVE EIGHTHS GENERAL MOTORS THOUGH EDGED UP JUST ONE QUARTER TO FIFTY NINE AND ONE HALF A G. M. TRUCK PLANT IN SHREVEPORT LOUISIANA WAS IDLED BY STRIKING UNITED AUTO WORKERS UNION MEMBERS THE BIG THREE'S SHARES WERE AMONG THE LEADERS IN MONDAY'S RUNUP AMERICAN EXPRESS JUMPED ONE AND ONE QUARTER TO THIRTY AND THREE QUARTERS THE FINANCIAL SERVICES CONCERN IS EXPECTED TO INTRODUCE A CREDIT CARD FOR CORPORATE PURCHASES TODAY TOYS R. US ADDED ONE HALF TO THIRTY EIGHT AND THREE QUARTERS AFTER THE PARAMUS N. J. RETAILER SAID IT WILL REPURCHASE AS MUCH AS ONE BILLION DOLLARS OF ITS COMMON STOCK OVER SEVERAL YEARS SEPARATELY IT DISCLOSED PLANS TO OPEN ONE HUNDRED FIFTEEN COMPANY OWNED STORES IN THE U. S. AND ABROAD AND TO FRANCHISE ADDITIONAL STORES OVERSEAS ALUMINUM COMPANY OF AMERICA SLIPPED TWO AND ONE HALF TO SEVENTY ONE AND FIVE EIGHTHS EXCLUDING EXTRAORDINARY CHARGES THE PITTSBURGH COMPANY HAD A LOSS OF TWENTY CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH PROFIT BEFORE CHARGES OF FIFTY SEVEN CENTS A YEAR AGO TELEFONOS DE MEXICO'S AMERICAN DEPOSITARY RECEIPTS ADDED ONE TO SIXTY SIX AND ONE HALF ON BIG BOARD LEADING VOLUME OF FIVE POINT SEVEN MILLION SHARES SHARES ON THE MEXICAN STOCK EXCHANGE REBOUNDED FROM A SIX PERCENT PLUNGE MONDAY CAUSED BY WORRIES OVER REBEL ACTIVITY IN THAT COUNTRY ORACLE CONTINUED TO CLIMB RISING ONE AND THREE QUARTERS TO THIRTY FOUR AND SEVEN EIGHTHS ON THE NASDAQ STOCK MARKET THE STOCK JUMPED ONE AND THREE EIGHTHS MONDAY ON NEWS THE REDWOOD CITY CALIFORNIA COMPANY WAS SELECTED TO PROVIDE MULTIMEDIA GEAR AND SOFTWARE TO BELL ATLANTIC THAT STOCK EASED ONE QUARTER TO FIFTY FIVE AND SEVEN EIGHTHS E. SYSTEMS CLIMBED TWO TO FORTY TWO AND THREE QUARTERS AFTER A KIDDER PEABODY ANALYST MADE POSITIVE COMMENTS ABOUT THE COMPANY AND SAID HE EXPECTS THE DALLAS CONCERN TO ANNOUNCE AN ACQUISITION EARLY THIS QUARTER AN E. SYSTEMS SPOKESMAN HAD NO COMMENT HARTFORD STEAM BOILER INSPECTION AND INSURANCE ROSE ONE AND THREE QUARTERS TO FORTY EIGHT AND ONE QUARTER THE WALL STREET JOURNAL'S HEARD ON THE STREET COLUMN SAID SOME ANALYSTS ARE OPTIMISTIC ABOUT A TURNAROUND AT THE INSURER WHOSE SHARES LOST ALMOST TWENTY FOUR PERCENT LAST YEAR U. S. AIR SLIPPED ONE QUARTER TO THIRTEEN AND ONE EIGHTH A FEDERAL JUDGE RULED THE ARLINGTON VIRGINIA AIRLINE WAS NEGLIGENT IN A MARCH NINETEEN NINETY TWO AIRLINER CRASH AT NEW YORK'S LA GUARDIA AIRPORT THAT KILLED TWENTY SEVEN PEOPLE A JURY WILL CONSIDER LEVYING PUNITIVE DAMAGES AGAINST U. S. AIR THE LEVEL OF COMPENSATORY DAMAGES HASN'T BEEN SET SCHLUMBERGER FELL ONE AND THREE EIGHTHS TO FIFTY NINE AND ONE HALF AFTER DONALDSON LUFKIN AND JENRETTE DOWNGRADED A RATING ON THE NEW YORK OIL FIELD SERVICES COMPANY'S STOCK TO NEUTRAL FROM ACCUMULATE PARKER AND PARSLEY DROPPED ONE TO TWENTY FOUR AND ONE HALF C. S. FIRST BOSTON CUT ITS OPINION ON SHARES OF THE MIDLAND TEXAS OIL AND GAS EXPLORATION AND PRODUCTION CONCERN TO HOLD FROM BUY BIOGEN ROCKETED FIVE TO FORTY SIX AND ONE QUARTER VECTOR SECURITIES SAID THE DATA FROM THE CAMBRIDGE MASSACHUSETTS COMPANY'S PHASE THREE CLINICAL TRIALS OF A TREATMENT FOR MULTIPLE SCLEROSIS LIKELY WILL BE AVAILABLE IN THE THIRD QUARTER NINE MONTHS EARLIER THAN VECTOR HAD EXPECTED THE FIRM RAISED ITS RATING ON BIOGEN SHARES TO BUY FROM NEUTRAL BARNETT BANKS FELL ONE AND ONE EIGHTH TO FORTY ONE AND FIVE EIGHTHS AND SUNTRUST BANKS SLIPPED THREE EIGHTHS TO FORTY FIVE AND THREE EIGHTHS BOTH COMPANIES REPORTED IMPROVED FOURTH QUARTER EARNINGS BUT THE RESULTS WERE JUST SHY OF THE MEAN ESTIMATE OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM LIPOSOME COMPANY SAID IT FILED MARKETING APPLICATIONS IN SIX EUROPEAN COUNTRIES FOR ITS AMPHOTERICIN B. LIPID COMPLEX OR ABLC USED IN THE PREVENTION OF FUNGAL INFECTIONS LIPOSOME ALSO SAID IT BEGAN A NEW PHASE TWO AND PHASE THREE CLINICAL TRIAL IN THE U. S. IN THE PREVENTION OF FUNGAL INFECTIONS IN PATIENTS UNDERGOING BONE MARROW TRANSPLANTS THE COMPANY WHICH SPECIALIZES IN DEVELOPING LIPOSOME AND LIPID BASED PHARMACEUTICALS SAID IT EXPECTS TO FILE MARKETING APPLICATIONS FOR ABLC IN TEN ADDITIONAL COUNTRIES THIS YEAR PRESIDENT CLINTON'S HONEYMOON WITH RUSSIAN PRESIDENT BORIS YELTSIN IS ABOUT TO COME TO AN END WHEN MR. CLINTON ARRIVES IN MOSCOW TONIGHT HE WILL FIND HIMSELF IN A RUSSIA THAT HAS UNDERGONE PROFOUND POLITICAL CHANGES SINCE HE LAST MET MR. YELTSIN IN TOKYO LAST OCTOBER RUSSIAN POLITICAL REALITIES NOW DEMAND THAT MR. YELTSIN INCREASINGLY DISTANCE HIMSELF FROM THE U. S. AT LEAST PUBLICLY ESPECIALLY ON FOREIGN POLICY QUESTIONS STUNG BY CHARGES OF SELLING OUT RUSSIAN INTERESTS TO THE WEST MR. YELTSIN HAS BEGUN INDICATING THAT RUSSIA HOPES TO FLEX ITS MUSCLES ON THE WORLD STAGE AS A GREAT POWER EQUAL IN STATUS TO THE U. S. THE REASON FOR THE NEW ATTITUDE IS CLEAR RUSSIANS' SENSE OF INFERIORITY CONTRIBUTED TO THE STRONG SHOWING OF ULTRA NATIONALIST VLADIMIR ZHIRINOVSKY IN LAST MONTH'S VOTING THE NEW ARM'S LENGTH RELATIONS NEEDN'T CAUSE ALARM IN WASHINGTON FOR THE U. S. THE CHALLENGE WILL BE TO ADAPT TO A MORE ASSERTIVE RUSSIA WITHOUT OVERREACTING QUOTE IT'S IN CLINTON'S INTEREST TOO IF RUSSIAN FOREIGN POLICY BECOMES MORE INDEPENDENT QUOTE SAYS YEVGENY AMBARTSUMOV A FOREIGN POLICY EXPERT AND MEMBER OF RUSSIA'S NEWLY ELECTED STATE DUMA WHICH CONVENED FOR THE FIRST TIME YESTERDAY HE ARGUES THAT IF RUSSIA FOLLOWS THE U. S. LEAD IN ALL MAJOR FOREIGN POLICY ISSUES IT WILL WORSEN THE BACKLASH AMONG NATIONALISTIC RUSSIANS IN PARTICULAR MR. YELTSIN WANTS THE U. S. TO GIVE RUSSIA LEEWAY IN DEALING WITH PROBLEMS IN THE SO CALLED NEAR ABROAD THE NEWLY INDEPENDENT FORMER SOVIET REPUBLICS MOSCOW WANTS TO PRESERVE THE RIGHT TO RESPOND TO THREATS TO THE MILLIONS OF RUSSIAN NATIONALS WHO LIVE JUST OUTSIDE THE COUNTRY'S BORDERS SOME RUSSIAN POLICY MAKERS ALSO ARE READY TO SPLIT WITH THE WEST ON POLICY TOWARD THE FORMER YUGOSLAVIA THE WEST HAS IMPOSED SANCTIONS AGAINST THE SERBS WITH WHOM MANY RUSSIANS FEEL SOLIDARITY YELTSIN IS TRYING TO COIN A VERSION OF LIBERAL NATIONALISM SAYS ANDREI KORTUNOV A FOREIGN POLICY ANALYST AT THE INSTITUTE OF U. S. A. AND CANADA STUDIES IN MOSCOW IT DOESN'T EXCLUDE BROAD COOPERATION WITH THE WEST BUT IT EMPHASIZES THE NATIONAL INTERESTS OF RUSSIA ITSELF THE ZHIRINOVSKY PHENOMENON ALREADY HAS COMPLICATED U. S. RUSSIAN RELATIONS AND WILL CAST A SHADOW OVER THE CLINTON YELTSIN TALKS THOUGH ESSENTIALLY A BLUSTERING DEMAGOGUE MR. ZHIRINOVSKY AND HIS FACILE PRESCRIPTIONS FOR A STRONGER RUSSIA HAVE PROVEN ATTRACTIVE TO MILLIONS OF RUSSIANS WHO FEEL HUMILIATED BY THE SOVIET EMPIRE'S COLLAPSE AND BY A GENERAL SENSE OF ECONOMIC DESPAIR IT ISN'T CLEAR HOW REAL THE THREAT FROM THE FAR RIGHT IS BUT RUSSIA ALREADY HAS BEGUN TO PLAY THE ZHIRINOVSKY CARD TO GET ITS WAY ON THE INTERNATIONAL ARENA WITH A WARY EYE TOWARD RUSSIA THE WEST DECIDED TO SLOW PLANS TO INCLUDE SOME FORMER WARSAW PACT NATIONS IN THE NORTH ATLANTIC TREATY ORGANIZATION THE RATIONALE HAVING NATO MEMBERS ALONG RUSSIA'S BORDERS WOULD INTENSIFY RUSSIAN INSECURITY AND STRENGTHEN THE ZHIRINOVSKY TYPES THE U. S. ALSO IS TAKING ITS OWN TENTATIVE STEPS TO DISTANCE ITSELF FROM MR. YELTSIN BEFORE THE ELECTION THE TWO SIDES HAD HOPED THAT MR. CLINTON'S VISIT TIMED AT THE START OF THE NEW PARLIAMENT WOULD AMOUNT TO A CELEBRATION OF RUSSIA'S NASCENT DEMOCRACY AND MR. YELTSIN'S POLITICAL SUCCESS AFTER THE POOR SHOWING OF MR. YELTSIN'S SUPPORTERS IN THE DECEMBER VOTE U. S. POLICY MAKERS HAVE COME TO REALIZE THAT THE YELTSIN ERA COULD BE RELATIVELY SHORT LIVED THE GOAL NOW IS TO MEET AND CULTIVATE OTHER RUSSIAN LEADERS WHO SUPPORT ECONOMIC REFORMS AND WHO MAY ONE DAY HOLD TOP POSITIONS OF POWER THESE INCLUDE PEOPLE SUCH AS GRIGORY YAVLINSKY AN ECONOMIST AND NIKOLAI TRAVKIN HEAD OF THE DEMOCRATIC PARTY OF RUSSIA MR. YELTSIN WILL FEEL PRESSURE TO SHOW THE U. S. PRESIDENT THAT HE ISN'T A LAME DUCK YELTSIN WILL BE TRYING TO COMMUNICATE TO CLINTON THAT HE ISN'T AFRAID OF ZHIRINOVSKY AND THAT HE IS AS STRONG AS EVER SAYS MR. KORTUNOV NOT SURPRISINGLY MR. CLINTON HAS NO PLANS TO MEET MR. ZHIRINOVSKY WHO ACCUSES THE U. S. PRESIDENT OF INTERFERING IN RUSSIA'S INTERNAL AFFAIRS DON'T AFRAID OF ME MR. CLINTON SAID MR. ZHIRINOVSKY IN HIS FRACTURED ENGLISH BEFORE THE START OF YESTERDAY'S PARLIAMENTARY SESSION CLINTON SAID THAT HE THOUGHT SOME OF MR. ZHIRINOVSKY'S WORDS WEREN'T GOOD BUT I'M RUSSIA I DECIDE WHAT TO SAY TO THE RUSSIAN PEOPLE QUOTE WHILE IN MOSCOW MR. CLINTON ALSO WILL FACE PRESSURE TO DELIVER CONCRETE ECONOMIC ASSISTANCE AND TO DO MORE TO OPEN U. S. MARKETS TO RUSSIAN GOODS PAST PROMISES OF LARGE SCALE WESTERN AID HAVE MADE RUSSIANS SKEPTICAL OF THE WEST'S DESIRE TO HELP BILLIONS OF DOLLARS HAVEN'T BEEN DELIVERED AND MOST AID THAT HAS COME HASN'T BEEN VISIBLE TO THE AVERAGE RUSSIAN STILL MR. CLINTON IS HOPING TO MAKE A SPLASH IN MOSCOW WITH THE AGREEMENT HE PLANS TO SIGN FRIDAY WITH THE RUSSIAN AND UKRAINIAN PRESIDENTS UNDER THE PACT UKRAINE IS TO RELINQUISH ITS NUCLEAR ARSENAL THE WORLD'S THIRD LARGEST IN RETURN FOR ONE BILLION DOLLARS IN U. S. AID AND PURCHASES OF UKRAINIAN URANIUM BUT PLENTY COULD GO WRONG WITH THAT DEAL SOME UKRAINIAN OFFICIALS ARE PREDICTING THAT THE COUNTRY'S PARLIAMENT WON'T RATIFY THE ACCORD CARING FOR PEOPLE WITH MENTAL HEALTH PROBLEMS HELPED BRING CHARTER MEDICAL CORPORATION TO THE BRINK OF COLLAPSE NOW THAT SAME BUSINESS BY CHARTER'S THINKING MAY PROVE TO BE ITS SALVATION A YEAR AND A HALF AFTER EMERGING FROM CHAPTER ELEVEN BANKRUPTCY LAW PROCEEDINGS THE MACON GEORGIA COMPANY IS LAYING THE GROUNDWORK FOR A MAJOR CHANGE IN THE WAY IT PROVIDES MEDICAL CARE TRADITIONALLY CHARTER HAS TREATED PATIENTS IN DOZENS OF PSYCHIATRIC HOSPITALS SCATTERED ACROSS THE COUNTRY THAT CARE THOUGH IS OFTEN LENGTHY AND EXPENSIVE ACCORDINGLY CHARTER IS NOW MOVING TO REDUCE ITS RELIANCE ON HOSPITAL TREATMENT AND PROVIDE A BROAD RANGE OF MENTAL HEALTH SERVICES QUOTE WE WANT TO BE SEEN AS THE ONE STOP SHOPPING CENTER FOR BEHAVIOR CARE QUOTE SAYS E. MAC CRAWFORD CHAIRMAN AND CHIEF EXECUTIVE TO THAT END CHARTER PLANS TO BECOME PART OF A PATIENT'S MENTAL HEALTH TREATMENT AS EARLY AS POSSIBLE HOPEFULLY LONG BEFORE HOSPITAL CARE IS REQUIRED THAT MEANS PURCHASING PHYSICIAN GROUPS COMPRISED OF PSYCHIATRISTS WHO SEE PATIENTS IN THE FIRST STAGES OF NEED THE COMPANY ALSO PLANS TO PROVIDE MORE PARTIAL HOSPITALIZATION AND MORE OUTPATIENT TREATMENT INVESTMENTS WILL BE MADE TOO IN LONG TERM RESIDENCES AND GROUP HOMES WHERE TREATMENT IS LESS INTENSIVE THAN IN PSYCHIATRIC HOSPITALS MR. CRAWFORD ACKNOWLEDGES THAT IN THE EFFORT TO REMAKE THE COMPANY PROFIT MARGINS IN THE SHORT TERM WILL BE SACRIFICED BUT THE MOVES ARE NECESSARY ACCORDING TO INDUSTRY OBSERVERS IN AN ERA OF HEALTH CARE REFORM RIVAL HOSPITALS AND OTHER MEDICAL PROVIDERS ARE JOINING FORCES TO OFFER CLIENTS A WIDE RANGE OF SERVICES AT DISCOUNTED PRICES TO BE VIABLE A COMPANY LIKE CHARTER CAN'T SIT BACK AND SAY I RUN PSYCHIATRIC HOSPITALS AND THAT'S ALL I DO SAYS JOEL RAY AN ANALYST WITH KIDDER PEABODY AND COMPANY IN NEW YORK YOU DO THAT AND YOU'RE A DINOSAUR YOU'RE GONE CHARTER SAYS IT PLANS TO ACQUIRE FIVE PHYSICIAN GROUP PRACTICES EVERY YEAR FOR THE NEXT FIVE YEARS IT ALSO PLANS TO ENTER TEN NEW MARKETS EVERY YEAR FOR THE NEXT THREE YEARS CURRENTLY MANY OF CHARTER'S OPERATIONS ARE IN THE SOUTH AND WEST THE COMPANY SAYS IT WILL ENTER THESE MARKETS THROUGH THE PURCHASE OF PHYSICIAN GROUPS OR THROUGH FREE STANDING OUTPATIENT OR PARTIAL HOSPITALIZATION CENTERS BESIDES USING ITS FIFTY MILLION DOLLAR REVOLVING CREDIT LINE AND FIFTEEN MILLION DOLLARS CASH ON HAND CHARTER WOULD FINANCE THE EXPANSION BY ISSUING STOCK OR REFINANCING ITS DEBT MR. CRAWFORD SAYS WITH THIS STRATEGY CHARTER EXPECTS TO SEE A HUGE JUMP IN ITS OUTPATIENT REVENUE AS A PERCENTAGE OF INCOME TO FIFTY PERCENT FROM TEN PERCENT CURRENTLY ACCORDING TO LARRY DRINKARD CHIEF FINANCIAL OFFICER AND WITH THE ESTABLISHMENT OF A NETWORK OF SERVICES CHARTER PLANS TO TAKE ITS PROGRAMS TO INSURANCE COMPANIES AND EMPLOYERS SETTING UP CONTRACTS FOR INSTANCE TO TREAT ENTIRE EMPLOYEE POPULATIONS FOR ONE LUMP SUM WHILE INDUSTRY ANALYSTS APPLAUD CHARTER'S AMBITIONS SEVERAL HURDLES REMAIN INDEED SOME OF THE SAME FORCES THAT HELPED PUSH CHARTER INTO A TAILSPIN IN THE LATE NINETEEN EIGHTIES STILL EXIST TODAY PAYERS OF MEDICAL BILLS CONTINUE TO PRESS FOR REDUCED CHARGES FROM HOSPITALS AND PHYSICIANS ONE RESULT AVERAGE LENGTHS OF STAY AT PSYCHIATRIC HOSPITALS FELL TO SEVENTEEN DAYS LAST YEAR FROM TWENTY EIGHT DAYS IN NINETEEN EIGHTY SEVEN AND THAT NUMBER IS EXPECTED TO CONTINUE TO DECLINE TO TEN TO TWELVE DAYS IN THE NEXT FIVE YEARS ANALYSTS SAY MEANWHILE ROOM FOR ERROR IN THE MENTAL HEALTH CARE INDUSTRY HAS ALL BUT VANISHED WITH PROFIT MARGINS AT MEDIAN PSYCHIATRIC HOSPITALS DIPPING TO MINUS ONE POINT THREE THREE PERCENT IN NINETEEN NINETY TWO FROM FOUR POINT SIX PERCENT IN NINETEEN EIGHTY EIGHT ACCORDING TO HCIA INCORPORATED A HEALTH CARE CONSULTING FIRM IF ANYTHING THAT FIGURE IS GOING TO GET WORSE PREDICTS JOHN W. CUMMINGS PRESIDENT OF WDI CAPITAL MARKETS INCORPORATED A HEALTH CARE INVESTMENT BANKING FIRM QUOTE MANAGED CARE IS GOING TO FORCE IT DOWN YOU'RE LOOKING AT ERODING PROFITS IN THE FACE OF REVENUES THAT AREN'T GROWING TO SURVIVE IN SUCH AN ENVIRONMENT PSYCHIATRIC HOSPITALS ARE HAVING TO MOVE AWAY FROM LENGTHY AND EXPENSIVE INPATIENT TREATMENT TO REMEDIES THAT ARE MORE PALATABLE TO INSURANCE COMPANIES NAMELY OUTPATIENT AND PARTIAL HOSPITALIZATION PROGRAMS BUT SUCH PROGRAMS BY THEIR VERY NATURE DON'T IMMEDIATELY PROVIDE THE CUSHION OF PROFITABILITY PER PATIENT THAT THE MORE EXPENSIVE INPATIENT TREATMENT PROVIDED DURING THE NINETEEN EIGHTIES ANALYSTS SAY TRANSLATION COMPANIES LIKE CHARTER NOT ONLY HAVE TO REMAKE THEMSELVES BUT IN SO DOING MAY ALSO FIND THEMSELVES WORKING HARDER FOR EVERY DOLLAR CHARTER SAYS IT IS UP TO THE CHALLENGE ANALYSTS SAY A TUMULTUOUS FIVE YEARS HAVE LEFT THE COMPANY BETTER PREPARED TO FACE THE FUTURE TAKEN PRIVATE IN A MANAGEMENT LED BUYOUT IN NINETEEN EIGHTY EIGHT CHARTER STRUGGLED WITH ONE POINT SIX BILLION DOLLARS IN DEBT JUST AS INSURERS AND OTHER MEDICAL PAYERS STARTED TO CRACK DOWN ON WHAT THEY CONSIDERED TO BE EXCESSIVE CHARGES FOR PSYCHIATRIC CARE IN NINETEEN NINETY ONE CHARTER BEGAN A FINANCIAL RESTRUCTURING AND EVENTUALLY ENTERED BANKRUPTCY COURT WITH A PRE PACKAGED CHAPTER ELEVEN FILING THE COMPANY WENT PUBLIC AGAIN IN JULY NINETEEN NINETY TWO MEANWHILE CHARTER FOUND ITSELF EMBROILED IN A FIGHT WITH TEXAS REGULATORS WHO HAD LAUNCHED AN INVESTIGATION INTO ALLEGED BILLING AND MARKETING ABUSES AT SEVERAL HOSPITAL CHAINS WHILE ADMITTING NO WRONGDOING THE COMPANY AGREED TO PAY THE STATE FIVE HUNDRED FIFTY THOUSAND DOLLARS FOR INVESTIGATION COSTS WITHDRAW ONE POINT ONE MILLION DOLLARS OF REIMBURSEMENT CLAIMS AGAINST A STATE VICTIM COMPENSATION FUND AND PROVIDE ONE POINT SIX MILLION DOLLARS OF FREE MENTAL HEALTH CARE TO TEXAS RESIDENTS FINALLY LAST SPRING THE COMPANY REPLACED ITS SIXTY YEAR OLD FOUNDER CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM A. FICKLING JUNIOR MR. CRAWFORD PRESIDENT AND CHIEF OPERATING OFFICER AT THE TIME TOOK OVER AS CHIEF EXECUTIVE WHILE MICHAEL HERNANDEZ A DIRECTOR WAS NAMED NON EXECUTIVE CHAIRMAN MR. CRAWFORD QUICKLY UNLOADED TEN MEDICAL SURGICAL HOSPITALS LAST SUMMER TO QUORUM HEALTH GROUP FOR THREE HUNDRED FORTY MILLION DOLLARS PROCEEDS WERE USED TO HELP TO TRIM CHARTER'S DEBT THE COMPANY PRIMARILY THROUGH ITS REORGANIZATION PLAN HAD ALREADY REDUCED ITS DEBT TO SEVEN HUNDRED MILLION DOLLARS TODAY CHARTER'S DEBT STANDS AT FOUR HUNDRED TWENTY MILLION DOLLARS BUT OTHER CHALLENGES REMAIN THE SPECTER OF HEALTH CARE REFORM MEANS CHARTER MAY BE HURT BY REDUCTIONS IN MEDICARE AND MEDICAID PAYMENTS AND THE COMPANY HAS SAID LITTLE ABOUT HOW IT PLANS TO DEAL WITH THE INCREASING AVAILABILITY OF PSYCHIATRIC DRUGS TO TREAT SCHIZOPHRENIA AND DEPRESSION DRUGS THAT ARE SLOWLY ERODING THE NEED FOR HOSPITAL TREATMENT STILL ANALYSTS ARE OPTIMISTIC THE MOVES ARE ALL SMART THINGS SAYS GEORGE PILLARI PRESIDENT OF HCIA THE CONSULTING CONCERN MOREOVER CHARTER HAS A CERTAIN ELEMENT OF CREDIBILITY THAT WASN'T THERE BEFORE AND THAT SHOULD HELP THEM AN ATTEMPT BY LEADING FRENCH DESIGNERS TO MAKE THEIR HAUTE COUTURE FASHION SHOWS A LITTLE LESS HAUTE HAS FALLEN FLAT ON ITS FACE HOPING TO REACH A BIGGER AUDIENCE FOR THEIR INVITATION ONLY SHOWS AND TO RECOUP SOME OF THEIR HIGH COSTS EIGHTEEN OF THE TWENTY LEADING DESIGNERS HERE HAD SOLD BROADCASTING RIGHTS OF THEIR SEMIANNUAL SHOWS FOR THE NEXT FIVE YEARS TO A U. S. PRODUCTION COMPANY CALLED EVENTMEDIA THE COMPANY PLANNED TO BEAM LIVE BROADCASTS OF MOST OF THE SHOWS TO PAYING AUDIENCES IN EXCLUSIVE HOTEL AUDITORIUMS IN NEW YORK CHICAGO AND LOS ANGELES THE BROADCAST PLANS WERE ABRUPTLY CANCELED YESTERDAY AFTER EVENTMEDIA SAID IT COULDN'T PAY ITS PROMISED FEES THE FLOP IS AN EMBARRASSING SETBACK JUST DAYS BEFORE THE START OF THE SUMMER FASHION SHOWS WHICH TYPICALLY GENERATE HUGE PUBLICITY FOR THE DESIGNERS RECRIMINATIONS ARE ALREADY FLYING IN THE FRENCH FASHION WORLD QUOTE I AM APPALLED BY THE LATE CANCELLATION OF THIS CONTRACT QUOTE SAYS FRANCOIS BELLENGUEZ PRESIDENT OF CARVEN A FASHION HOUSE WHILE CHRISTIAN DIOR CHRISTIAN LACROIX GUY DE GIVENCHY AND OTHER TOP NAMES HAD EAGERLY SIGNED UP FOR THE PLAN TWO DESIGNERS CHANEL AND PIERRE CARDIN REFUSED THE ARRANGEMENT UNDER THE CONTRACT EACH PARTICIPANT WOULD HAVE RECEIVED ABOUT EIGHTY FIVE THOUSAND DOLLARS FOR EACH TWICE YEARLY SHOW BECAUSE THE LAVISH SHOWS CAN COST BETWEEN ONE MILLION DOLLARS AND TWO POINT FIVE MILLION DOLLARS THE BROADCAST FEES WOULD HAVE PAID ONLY A SMALL PART OF THE COSTS BUT THE MONEY WOULD HAVE BEEN WELCOME AT A TIME WHEN COUTURE IS STRUGGLING CARVEN A SMALLER DESIGNER HAD HOPED TO USE THE BROADCAST FEES TO PAY FOR BIGGER VENUES FOR ITS SHOWS WE WERE COUNTING VERY MUCH ON THIS CONTRACT MR. BELLENGUEZ SAID THE CONTRACT WHICH WAS NEGOTIATED BY JACQUES MOUCLIER THE PRESIDENT OF THE FRENCH COUTURE FEDERATION SPECIFIED THAT EVENTMEDIA WOULD PAY TWO MILLION DOLLARS ANNUALLY CHARGING U. S. SUBSCRIBERS UP TO ONE THOUSAND SIX HUNDRED DOLLARS FOR EIGHT LIVE HALF DAY BROADCASTS MR. MOUCLIER SAID HE UNDERSTOOD EVENTMEDIA TO BE A PRODUCTION COMPANY THAT HAD STAGED SIMILAR EXCLUSIVE BROADCASTS OF CONCERTS WHEN ASKED ABOUT THE SOURCES OF THE FINANCING FOR THE SCHEME JOHN TRIGGLE EVENTMEDIA'S PRESIDENT WOULD SAY ONLY THAT THE MONEY CAME FROM PRIVATE UNNAMED INVESTORS REPEATED PHONE CALLS TO MR. TRIGGLE'S OFFICE AFTER THE CONTRACT COLLAPSED WERE NOT RETURNED JUST LAST WEEK MR. MOUCLIER WAS EFFUSIVE ABOUT THE EVENTMEDIA DEAL SAYING IT DEMONSTRATED THAT HAUTE COUTURE OFTEN WRITTEN OFF AS DEAD IN THE LAST THIRTY YEARS WAS SHOWING NEWFOUND DYNAMISM YESTERDAY HE COMMENTED DEJECTEDLY THAT WE ARE WOUNDED AND WE'LL HAVE TO RUB ON SOME BALM THE TWO HOUSES THAT DIDN'T SIGN UP MEANWHILE ARE CROWING WE WERE VERY SURPRISED THAT THE FEDERATION'S MEMBERS HAD ACCEPTED THE DEAL EN MASSE SNIFFED A CHANEL SPOKESWOMAN FOR US THE PRINCIPLE OF HANDING OVER OUR IMAGE IS AN ABERRATION GUN DEALERS NEARLY SIX OUT OF TEN ADULT TEXANS KEEP GUNS IN THEIR HOMES FOR PROTECTION ACCORDING TO A SURVEY BY SAM HOUSTON STATE UNIVERSITY JERRY JONES THE DALLAS COWBOYS OWNER DIDN'T UNJUSTLY ENRICH HIMSELF AT THE EXPENSE OF THREE THOUSAND NATURAL GAS ROYALTY OWNERS AFFILIATED WITH HIS FORMER COMPANY AN ARKANSAS FEDERAL JUDGE RULED LITTLE EARS WORRIED THAT CHILDREN MIGHT READ THE FILINGS A STATE JUDGE ORDERED ATTORNEYS TO ELIMINATE FOUL LANGUAGE FROM A LAWSUIT ACCUSING DALLAS DESIGNER VICTOR COSTA OF SEXUAL HARASSMENT PRO LINE CAP COMPANY RATHER THAN BUILD MORE WOMEN'S RESTROOMS THIS WHITE SETTLEMENT CAP MAKER FIRED THIRTY FEMALE EMPLOYEES ALLEGES A LAWSUIT FILED BY THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION GANG FASHIONS CORPUS CHRISTI'S SUNRISE MALL BARRED SHOPPERS WHO WEAR BASEBALL CAPS TURNED BACKWARDS ARGUING THAT IT'S A SIGN OF GANG MEMBERSHIP AGGIES THE N. C. A. A. BANNED A AND M'S FOOTBALL TEAM FROM APPEARING ON TELEVISION FOR A YEAR AFTER DETERMINING SOME PLAYERS WERE PAID FOR SUMMER WORK THEY DIDN'T PERFORM TIMES MIRROR COMPANY SAID IT CREATED AN OFFICE OF THE PUBLISHER AND REORGANIZED SENIOR MANAGEMENT OF ITS NEWSDAY AND NEW YORK NEWSDAY EAST COAST NEWSPAPERS THE MEDIA AND INFORMATION COMPANY SAID THE NEW OFFICE WILL INCLUDE THE PAPERS' PUBLISHER ROBERT M. JOHNSON FORTY EIGHT YEARS OLD AND DEPUTY PUBLISHER STEVEN L. ISENBERG FIFTY THREE ALSO ALBERTO IBARGUEN FORTY NINE WAS NAMED EXECUTIVE VICE PRESIDENT FOR OPERATIONS MR. IBARGUEN WAS FORMERLY SENIOR VICE PRESIDENT FOR LEGAL EMPLOYEE AND PUBLIC AFFAIRS ANTHONY MARRO FIFTY ONE WAS PROMOTED FROM SENIOR VICE PRESIDENT AND EDITOR OF NEWSDAY TO EXECUTIVE VICE PRESIDENT AND EDITOR OF THE NEWSPAPER GERALD H. L. TRYHANE FORTY ONE FORMERLY VICE PRESIDENT OF FINANCE WAS NAMED SENIOR VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER HAROLD F. WOLDT JUNIOR FORTY SIX WAS PROMOTED FROM VICE PRESIDENT CIRCULATION TO SENIOR VICE PRESIDENT CIRCULATION AND DISTRIBUTION AND JAMES FITZGERALD SIXTY TWO SENIOR VICE PRESIDENT WILL NOW SERVE AS SENIOR ADVISER AND SPECIAL PROJECT DIRECTOR BIOGEN INCORPORATED CAMBRIDGE MASSACHUSETTS SAID IT WILL REALIZE AN ADDITIONAL FIFTEEN MILLION DOLLARS IN REVENUE THIS YEAR MOST OF IT IN THE FIRST QUARTER FROM AN AGREEMENT ALLOWING ELI LILLY AND COMPANY TO USE BIOGEN PATENTS FOR GENETICALLY ENGINEERED PRODUCTS BIOGEN SAID NINETEEN NINETY THREE REVENUE WAS AROUND ONE HUNDRED FIFTY MILLION DOLLARS IN NASDAQ STOCK MARKET TRADING BIOGEN'S SHARES CLOSED AT FORTY SIX DOLLARS AND TWENTY FIVE CENTS UP FIVE DOLLARS OR TWELVE PERCENT SEPARATELY ARES SERONO S. A.'S ARES SERONO GROUP SAID IT REACHED AN AGREEMENT TO TRANSFER PATENT RIGHTS TO BIOGEN ON D. N. A. CODING FOR RECOMBINANT BETA INTERFERON WHICH HAS SHOWN PROMISE IN TREATING MULTIPLE SCLEROSIS AND CERTAIN IMMUNE SYSTEM DISEASES TERMS WEREN'T DISCLOSED ARES SERONO IS A SWISS DEVELOPER AND MARKETER OF PHARMACEUTICAL AND DIAGNOSTIC PRODUCTS ADAC LABORATORIES SAID IT EXPECTS TO REPORT A TWENTY EIGHT PERCENT RISE IN NET INCOME FOR ITS FISCAL FIRST QUARTER CITING STRONG SALES OF ITS MEDICAL EQUIPMENT ADAC SAID IT EXPECTS TO REPORT THAT NET INCOME FOR THE QUARTER ENDED JANUARY THIRD WAS THIRTY TWO CENTS A SHARE ON REVENUE OF FORTY SIX POINT FIVE MILLION DOLLARS IN THE YEAR EARLIER QUARTER THE COMPANY HAD NET INCOME OF FOUR POINT ONE MILLION DOLLARS OR TWENTY FIVE CENTS A SHARE WHEN ADJUSTED FOR A ONE FOR THREE REVERSE STOCK SPLIT ON REVENUE OF THIRTY SIX POINT THREE MILLION DOLLARS THE MILPITAS CALIFORNIA MEDICAL EQUIPMENT COMPANY SAID IT RECEIVED BOOKINGS OF ALMOST FORTY EIGHT MILLION DOLLARS FIFTEEN PERCENT MORE THAN IN THE YEAR AGO QUARTER ADAC SAID IT EXPECTS TO REPORT COMPLETE RESULTS BY MID FEBRUARY MEXICAN STOCKS REBOUNDED SHARPLY YESTERDAY IN RESPONSE TO SIGNS OF POSSIBLE DIALOGUE BETWEEN THE CHIAPAS REBELS AND THE GOVERNMENT HERE THE MEXICAN BOLSA'S I. P. C. INDEX WHICH PLUNGED MORE THAN SIX PERCENT MONDAY SOARED MORE THAN ONE HUNDRED TWENTY POINTS IN MORNING TRADING YESTERDAY AND THEN SETTLED BACK ON PROFITTAKING TO CLOSE UP NINETY FIVE POINT FOUR FIVE POINTS OR THREE POINT EIGHT EIGHT PERCENT AT TWO THOUSAND FIVE HUNDRED FIFTY FOUR POINT FIVE SIX VOLUME WAS MODERATELY HEAVY AT ONE HUNDRED FORTY SIX POINT SIX MILLION SHARES THE DOW JONES MEXICO INDEX ROSE SIX POINT FOUR OH OR THREE POINT SIX SEVEN PERCENT TO ONE HUNDRED EIGHTY TWO POINT FIVE FIVE AS PREVIOUSLY REPORTED PRESIDENT CARLOS SALINAS DE GORTARI RESHUFFLED HIS CABINET AND APPOINTED MANUEL CAMACHO SOLIS A FORMER MEXICO CITY MAYOR AND FOREIGN MINISTER TO HEAD A NEWLY FORMED CHIAPAS PEACE COMMISSION AT THE SAME TIME THE REBEL EJERCITO ZAPATISTA DE LIBERACION NACIONAL PUBLISHED ITS CEASE FIRE CONDITIONS IN A CHIAPAS NEWSPAPER QUOTE THIS IS A SIGN OF DIALOGUE THAT IS VERY IMPORTANT QUOTE SAID SALVADOR SANCHEZ OCHARAN DIRECTOR GENERAL AT MEXICAN BROKERAGE FIRM PROBURSA STILL HE SAID MEXICAN INVESTORS CONTINUE TO TAKE PROFITS AND ELIMINATE SPECULATIVE POSITIONS FOREIGN INVESTORS MR. SANCHEZ SAID ARE BUYING CAUTIOUSLY THIS DIVERGENCE IN TRADING PATTERNS BETWEEN FOREIGN AND LOCAL INVESTORS HAS PERSISTED THROUGHOUT THE CHIAPAS CRISIS MEXICAN INVESTORS ARE TAKING A CAUTIOUS VIEW ON THE ECONOMIC AND POLITICAL IMPACT OF THE CHIAPAS WAR FOREIGN INVESTORS VIEW THE REBELLION AS A REGIONAL CONFLICT THAT WILL SOON SUBSIDE WITH LITTLE IMPACT ON THE MEXICAN ECONOMY I USUALLY BELIEVE THAT INTERNATIONAL INVESTORS ARE MORE SOPHISTICATED SAID JORGE SUAREZ VELEZ MANAGING DIRECTOR OF AFIN SECURITIES INTERNATIONAL NEW YORK BUT IN THIS CASE THEY DON'T KNOW MORE THAN MEXICAN INVESTORS ANALYSTS IN MEXICO FIGURE THAT THE CHIAPAS UPRISING COULD PROVOKE TWO IMPORTANT CHANGES IN MEXICO'S POLITICAL ECONOMY FIRST IT MAY SPUR MORE SOCIAL SPENDING WHICH COULD KEEP INFLATION UP AROUND EIGHT PERCENT IN NINETEEN NINETY FOUR AND POSSIBLY PUSH THE COUNTRY'S BUDGET INTO A DEFICIT THE GOVERNMENT HAD HOPED TO LOWER INFLATION TO FIVE PERCENT THIS YEAR SECOND THE RULING PARTY IS LIKELY TO GRANT MORE POLITICAL CONCESSIONS TO OPPOSITION CANDIDATES WHILE TRYING TO WIN ELECTIONS THROUGH ECONOMIC EFFORTS THAT REQUIRE MORE FEDERAL SPENDING WHILE THESE CHANGES WOULD NOT NECESSARILY BE BEARISH FOR THE STOCK MARKET ANALYSTS SAID THEY DO REPRESENT UNCERTAINTIES THAT MAKE MEXICAN INVESTORS CAUTIOUS INTERNATIONAL INVESTORS HOWEVER BELIEVE THAT PRESIDENT SALINAS WILL BE ABLE TO SOLVE THE CHIAPAS CONFLICT QUICKLY THEY SEE FEW OTHER MARKETS AND ECONOMIES IN LATIN AMERICA THAT WILL ATTRACT THE FOREIGN INVESTMENT THAT IS LIKELY TO POUR INTO MEXICO THIS YEAR AND THEY EXPECT ANOTHER YEAR OF DOUBLE DIGIT STOCK MARKET GAINS EVERY TIME THE MARKET GOES DOWN IT IS A BUYING OPPORTUNITY SAID FEDERICO HERNANDEZ HEREDIA A PORTFOLIO MANAGER AT THE EURINAM GROUP AN INTERNATIONAL INVESTMENT FIRM IN NEW YORK I AM ALSO NERVOUS BUT MY VIEW IS STILL VERY POSITIVE ON THE COUNTRY I CAN'T GET RETURNS LIKE THIS ANYWHERE ELSE SOUTH OF THE BORDER THE PESO RECOVERED SLIGHTLY AGAINST THE DOLLAR YESTERDAY A SIGN THAT FOREIGN INVESTMENT FLOWS REMAINED STABLE QUOTE WHAT ARE THE FOREIGNERS DOING JUST WATCH THE CURRENCY SAID JOHN LIEGEY PRESIDENT OF THE WESTON GROUP NEW YORK IN LATE TRADING THE MEXICAN CURRENCY CHANGED HANDS AT THREE POINT ONE OH NINE ONE PESOS TO THE DOLLAR COMPARED WITH THREE POINT ONE ONE FOUR FIVE PESOS MONDAY ON THE MEXICAN BOLSA CONGLOMERATE GRUPO CARSO ROSE NEARLY SEVEN PERCENT TO THIRTY THREE POINT SEVEN OH PESOS ELEVEN DOLLARS AND TWO CENTS CEMEX CLASS B. SHARES ROSE ABOUT FIVE PERCENT TO NINETY THREE POINT FIVE OH PESOS GLASS MAKER VITRO'S SHARES ROSE SIX POINT ONE NINE PERCENT TO TWENTY TWO POINT THREE OH PESOS ACCORDING TO BARING SECURITIES NEW YORK THE AMERICAN DEPOSITARY SHARES OF TELEFONOS DE MEXICO ROSE ONE AND ONE HALF TO SIXTY SIX AND THREE QUARTERS ON THE NEW YORK STOCK EXCHANGE MR. SANCHEZ OCHARAN OF PROBURSA ADDED THAT THE GOVERNMENT'S DECISION TO SELL ITS STAKE IN TELMEX ELIMINATED ONE OF THE BIGGEST UNCERTAINTIES SURROUNDING THE BOLSA'S LARGEST STOCK AND ENCOURAGED FRESH INVESTMENT IN THE SHARES LONDON EQUITIES RETREATED ON INCREASINGLY GLOOMY SENTIMENT ABOUT PROSPECTS FOR AN INTEREST RATE CUT SOON TOKYO'S MARKET ROSE SLIGHTLY TUESDAY LOGGING ITS FIFTH GAIN IN A ROW TO THE HIGHEST LEVEL IN TWO MONTHS AS OVERSEAS INVESTORS CONTINUED TO SNAP UP SHARES THAT JAPANESE INSTITUTIONS SOLD TO LOCK IN PROFITS AHEAD OF THE MARCH THIRTY FIRST END OF THE FISCAL YEAR BUT HONG KONG STOCKS SLUMPED ONE POINT NINE PERCENT ON PROFIT TAKING FOLLOWING A SHORT LIVED REBOUND THE PREVIOUS DAY SINGAPORE'S MARKET SLID TWO POINT EIGHT PERCENT ALSO AS INVESTORS SNAGGED PROFITS AND KUALA LUMPUR SHARES DIVED FIVE POINT SIX PERCENT AFTER A FORMER MALAYSIAN FINANCE MINISTER SAID THE STEAMING BOURSE WAS RIPE FOR A CORRECTION WORLD WIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT ONE HUNDRED TWELVE POINT NINE ONE DOWN ZERO POINT THREE FOUR REFLECTING DECREASES IN ALL THREE MARKET REGIONS THE AMERICAS EUROPE AND ASIA SLASH PACIFIC HEALTH CARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT ONE HUNDRED FORTY EIGHT POINT SIX OH UP TWO POINT ONE OH OR ONE POINT FOUR PERCENT WITH HOSPITAL CORPORATION OF AMERICA OF THE U. S. POSTING A FOUR POINT TWO PERCENT GAIN IN ITS LOCAL CURRENCY PLANTATION STOCKS TRAILED AT TWO HUNDRED SEVENTY TWO POINT THREE THREE DOWN TWENTY FOUR POINT FOUR FIVE OR EIGHT POINT TWO PERCENT WITH UNITED PLANTATIONS B. H. D. OF MALAYSIA SLIDING TWELVE PERCENT IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMES STOCK EXCHANGE ONE HUNDRED SHARE INDEX GAVE UP TWENTY SIX POINT EIGHT POINTS TO THREE THOUSAND FOUR HUNDRED THIRTEEN POINT EIGHT THE F. T. THIRTY STOCK INDEX FELL TEN POINT ONE POINTS TO TWO THOUSAND SIX HUNDRED FOUR POINT EIGHT BELOW ITS NINETEEN NINETY THREE YEAR END FINISH VOLUME WAS EIGHT HUNDRED EIGHTY TWO POINT EIGHT MILLION SHARES COMPARED WITH EIGHT HUNDRED FORTY NINE POINT ONE MILLION SHARES A DAY EARLIER PRICES SLUMPED IN THE FINAL HALF HOUR TAKING A CUE FROM THE FUTURES MARKET AND ENDED BROADLY LOWER IN ADDITION TO GROWING PESSIMISM ABOUT A LENDING RATE REDUCTION INVESTORS WERE CONCERNED ABOUT INFLATION BECAUSE OF A SURVEY THAT SHOWED MANY BRITISH COMPANIES PLAN TO RAISE PRICES AS THE ECONOMY'S RECOVERY GATHERS STEAM THIS NEWS HURT FINANCIAL STOCKS WHICH WOULD BENEFIT FROM LOWER INTEREST RATES INVESTORS ALSO GREW CAUTIOUS AFTER A WEAK OPENING ON WALL STREET FOLLOWING MONDAY'S RALLY IN FRANKFURT STOCK PRICES CLOSED MIXED IN DULL TECHNICAL TRADING THE D. A. X. THIRTY STOCK INDEX SLIPPED FIVE POINT OH FOUR POINTS TO TWO THOUSAND TWO HUNDRED TWENTY EIGHT POINT SEVEN FIVE DEALINGS WERE INFLUENCED BY THE FUTURES MARKET THE STOCK MARKET'S LETHARGY WASN'T SHAKEN BY REPORTS OF GERMANY'S WORST ANNUAL GROSS DOMESTIC PRODUCT SINCE WORLD WAR TWO AN INFLATION ADJUSTED CONTRACTION OF ONE POINT NINE PERCENT LAST YEAR AND OF A FOURTEEN POINT SEVEN PERCENT DROP IN CAPITAL SPENDING IN PARIS STOCKS GAINED KEEPING UP THE MOMENTUM FOR NEW HIGHS THIS YEAR HELPED BY POSITIVE CORPORATE NEWS TO SPUR TRADING IN MILAN PRICES MUSCLED UP IN ROBUST DEALINGS AS BARGAIN HUNTING INSTITUTIONAL INVESTORS RETURNED IN DROVES TO BUY QUALITY ISSUES CONSIDERED UNDERVALUED AFTER RECENT BEATINGS IN MADRID SHARES ADVANCED TO A RECORD HIGH IN ACTIVE TRADING UNDERPINNED BY HOPES FOR SHORT TERM RATE CUTS A COMING END TO SPAIN'S RECESSION AND ESTIMATES OF LOW DECEMBER INFLATION AND IN STOCKHOLM PRICES ROSE TO THEIR FOURTH CONSECUTIVE RECORD HIGH IN EXTREMELY HEAVY TRADING DESPITE PROFIT TAKING IN SOME BLUE CHIP ISSUES IN TOKYO THE NIKKEI TWO HUNDRED TWENTY FIVE STOCK INDEX WHICH RALLIED THREE HUNDRED NINETEEN POINT FOUR THREE POINTS MONDAY ROSE FORTY ONE POINT EIGHT ONE TO EIGHTEEN THOUSAND FOUR HUNDRED EIGHTY FIVE POINT TWO FIVE ITS HIGHEST LEVEL SINCE NOVEMBER TWELFTH IN TRADING WEDNESDAY IN TOKYO THE NIKKEI INDEX ROSE SEVENTY SIX POINT NINE ONE POINTS TO CLOSE THE MORNING SESSION AT EIGHTEEN THOUSAND FIVE HUNDRED SIXTY TWO POINT ONE SIX TUESDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT FOUR HUNDRED THIRTY MILLION SHARES DOWN FROM FOUR HUNDRED SEVENTY POINT SEVEN MILLION SHARES A DAY EARLIER ADVANCING ISSUES EDGED DECLINERS SIX HUNDRED TWENTY ONE TO FOUR HUNDRED SEVENTEEN THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH GAINED EIGHTEEN POINT THREE ONE POINTS MONDAY EASED ZERO POINT FOUR FIVE TO ONE THOUSAND FIVE HUNDRED POINT EIGHT FOUR OVERSEAS INVESTORS' BUYING REMAINED BRISK WHILE MANY JAPANESE CORPORATIONS AND FINANCIAL INSTITUTIONS UNLOADED HOLDINGS TO SPRUCE UP PORTFOLIO RESULTS BEFORE THE FISCAL YEAR END AND SOME INVESTORS TOOK PROFITS FOREIGNERS HAVE FLOCKED TO THE TOKYO MARKET SINCE LAST WEEK WHEN SOME FINANCIAL INSTITUTIONS INCREASED THEIR RECOMMENDED WEIGHTING FOR JAPANESE SHARES AND SOME SOUTHEAST ASIAN BOURSES PLUNGED AFTER CLIMBING TO SESSION HIGHS TUESDAY SHARES HIT SUBSTANTIAL SELLING PRESSURE AND RETREATED A BURST OF FUTURESRELATED BUYING IN THE FINAL FIVE MINUTES PUSHED THE NIKKEI BACK UP INTO POSITIVE TERRITORY SECURITIES SHARES WERE THE TOP PERFORMERS CONTINUING THEIR RECENT RALLY COINCIDING WITH REPORTS THAT JAPAN'S SECURITIES TRANSACTION TAX MAY BE ABOLISHED IN HONG KONG FOLLOWING A THREE POINT THREE PERCENT TECHNICAL REBOUND THE DAY BEFORE FROM A SKID OF ALMOST TEN PERCENT IN THREE DAYS LAST WEEK SHARES OPENED HIGHER BUT COULDN'T SUSTAIN THE GAINS WHICH WERE KNOCKED DOWN BY PROFITTAKING ATTRIBUTED MAINLY TO JAPANESE INVESTORS PROPERTY STOCKS GAVE UP TWO POINT THREE PERCENT COMMERCIAL AND INDUSTRIAL ISSUES LOST TWO POINT ONE PERCENT AND UTILITIES SAGGED ONE POINT NINE PERCENT IN SINGAPORE SNARING OF PROFITS WHACKED THE MARKET AMID WORRIES ABOUT RISING INTEREST RATES AND CRITICISM THE PREVIOUS DAY BY A MALAYSIAN ECONOMIC ADVISER AND BIG STOCK PLAYER THAT THAT COUNTRY'S MARKET WAS OVERHEATED IN KUALA LUMPUR PRICES DIVED AS JITTERY INVESTORS TOOK TO HEART THE WARNING BY TUN DAIM ZAINUDDIN A FORMER FINANCE MINISTER ABOUT THE MARKET'S RECENT HUGE GAINS CAPPED BY A YEAR END SPECULATIVE SURGE IN TAIPEI PRICES LOST ONE POINT SIX PERCENT IN ACTIVE TRADING AS INVESTORS WORRIED ABOUT THE TAIWAN GOVERNMENT'S MOVE TO TIGHTEN LIQUIDITY INTERBANK RATES IN THE MONEY MARKET JUMPED ABOVE SEVEN PERCENT AS TAIWAN'S CENTRAL BANK HAS REFRAINED FROM INJECTING FUNDS INTO THE MARKET IN MANILA SHARES RETREATED ONE POINT FOUR PERCENT ON INSTITUTIONAL PROFIT TAKING FOR THE THIRD CONSECUTIVE DROP BUT IN SYDNEY SHARES CHALKED UP MODERATE GAINS ON STRONG OVERSEAS BUYING A STRONGER AUSTRALIAN DOLLAR AND WALL STREET'S RALLY THE PREVIOUS DAY IN SEOUL THE BELLWETHER INDEX REBOUNDED STRONGLY ENCOURAGED BY LACK OF SELLING BY INSTITUTIONS THOUGH DECLINING ISSUES OUTNUMBERED GAINING ISSUES AND IN BANGKOK STOCKS CLIMBED THREE POINT NINE PERCENT THE FIRST RISE AFTER BIG DECLINES IN THE PREVIOUS FOUR SESSIONS AMONG CORPORATE DEVELOPMENTS IN FRANKFURT METALLGESELLSCHAFT JUMPED SIXTEEN MARKS OR SEVEN POINT THREE PERCENT TO TWO HUNDRED THIRTY SIX MARKS ONE HUNDRED THIRTY SIX DOLLARS AND FIVE CENTS DESPITE A NEW OBSTACLE TO THE COMPANY'S RESTRUCTURING PLAN ONE OF THE METAL ENGINEERING AND TRADE CONCERN'S BIG GERMAN BANK CREDITORS ANNOUNCED ITS OPPOSITION TO THE THREE POINT TWO BILLION MARK ONE POINT EIGHT FOUR BILLION DOLLARS RESCUE PACKAGE REFLECTING RESERVATIONS BY SOME OTHER CREDITORS BUT THE PLAN IS STILL EXPECTED TO PASS AS BIG BANK LENDERS AND MAJOR STOCKHOLDERS ARE BEHIND IT 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 NINETEEN SIXTY NINE EQUALING ONE HUNDRED THE PERCENTAGE CHANGE IS SINCE YEAR END THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR FELL TO ONE HUNDRED ELEVEN POINT OH EIGHT IN THE LATEST WEEK FROM A REVISED ONE HUNDRED ELEVEN POINT ONE THREE THE PRIOR WEEK THREE COMPONENTS TURNED BEARISH CONSUMER CONFIDENCE FELL IN THE LATEST MONTH INITIAL UNEMPLOYMENT CLAIMS SHOT UP SHARPLY AND THE HELP WANTED INDEX DECLINED THE ANNUAL GROWTH RATE OF THE TEXAS INDEX FELL TO TWO POINT SEVEN SEVEN PERCENT THE LOWEST LEVEL SINCE MID AUGUST THE DOLLAR CAUTIOUSLY INCHED HIGHER AGAINST MAJOR CURRENCIES IN QUIET TRADING PRODDED BY EXPECTATIONS THAT THE U. S. ECONOMY WILL CONTINUE TO PUSH AHEAD WITH LITTLE INFLATION BUT THE DOLLAR'S RISE AGAINST THE MARK WAS STUNTED BY SOME HEAVY TECHNICAL BARRIERS AND BY BROAD HINTS FROM A BUNDESBANK OFFICIAL THAT THE GERMAN CENTRAL BANK ISN'T READY TO SEE ANY SWIFT CUTS IN GERMAN INTEREST RATES THE AUSTRALIAN DOLLAR MEANWHILE PUSHED THROUGH SOME TECHNICAL LEVELS EARLY IN THE DAY AND CLUNG TO THOSE GAINS FOR THE REST OF THE SESSION BOLSTERED BY BUYING INTEREST FROM SOME U. S. BANKS AND INVESTMENT FUNDS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT ONE POINT SEVEN FOUR ONE SIX MARKS UP FROM ONE POINT SEVEN THREE FOUR SIX MARKS LATE MONDAY IN NEW YORK THE U. S. CURRENCY ALSO WAS CHANGING HANDS AT ONE HUNDRED TWELVE POINT FOUR OH YEN UP FROM ONE HUNDRED TWELVE POINT TWO FIVE YEN STERLING WAS TRADING AT ONE POINT FOUR NINE OH FIVE DOLLARS DOWN FROM ONE POINT FOUR NINE THREE OH DOLLARS ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT ONE HUNDRED TWELVE POINT TWO FIVE YEN AND AT ONE POINT SEVEN THREE NINE FIVE MARKS IN A RELATIVELY SCANT NEWS SESSION TRADERS FAVORED THE DOLLAR AGAINST THE MARK BASED ON THE VIEW THAT THE STRENGTH OF THE U. S. ECONOMY COMPARED TO THOSE IN EUROPE WILL HELP PUSH THE U. S. CURRENCY HIGHER THIS YEAR ALSO ADDING TO THE DOLLAR OPTIMISM TRADERS NOTED WERE GROWING PERCEPTIONS THAT U. S. INFLATION PRESSURES AS MEASURED BY DATA RELEASES DUE TODAY AND TOMORROW SHOULD CONTINUE WEAK THAT TRADERS SAID COULD KEEP THE FEDERAL RESERVE FROM MAKING ANY QUICK MOVES TO BOOST U. S. INTEREST RATES ALLOWING THE U. S. ECONOMY TO CONTINUE TO THRIVE IN A LOW RATE ENVIRONMENT QUOTE THAT REASONING WAS TAKEN AS A BULLISH SIGN FOR THE DOLLAR BECAUSE THE ECONOMY COULD CONTINUE TO EXPAND QUOTE SAID HILLEL WAXMAN VICE PRESIDENT FOREIGN EXCHANGE AT BANK LEUMI TRUST COMPANY IN NEW YORK THE CLOSELY WATCHED PRODUCER PRICE INDEX FOR DECEMBER WILL BE RELEASED TODAY WITH MOST ECONOMISTS EXPECTING A SLIGHT DECLINE OF ZERO POINT ONE PERCENT FROM NOVEMBER'S LEVEL THE CONSUMER PRICE INDEX DATA WILL BE RELEASED TOMORROW WITH EXPECTATIONS ALSO CENTERING ON A SLIGHT RISE OF ZERO POINT ONE PERCENT WE EXPECT CONFIRMATION THAT THE ECONOMY IS MOVING AHEAD WITH VERY LITTLE INFLATION SAID MICHAEL MCKEEVER ASSISTANT VICE PRESIDENT AT FUJI BANK IN NEW YORK BUT WHILE TRADERS REMAINED FIRMLY BULLISH ON THE DOLLAR'S PROSPECTS OVER THE LONGER TERM THEY NOTED THAT THE MARKET HASN'T YET BUILT UP THE CONFIDENCE TO PUSH THE CURRENCY ABOVE A TECHNICAL POINT AT ONE POINT SEVEN FOUR EIGHT OH MARKS THE DOLLAR'S HIGH FOR NINETEEN NINETY THREE ALSO PROMPTING CAUTION TRADERS ADDED WERE COMMENTS BY HELMUT HESSE A MEMBER OF THE BUNDESBANK'S POLICYMAKING COUNCIL WHICH SUGGESTED THAT LONG AWAITED CUTS IN GERMAN INTEREST RATES MAY BE SLOW IN COMING MR. HESSE EMPHASIZED YESTERDAY THAT WHILE GERMAN INTEREST RATES WILL FALL FURTHER IN NINETEEN NINETY FOUR THE CENTRAL BANK WILL BE VERY CAUTIOUS IN MAKING ANY MOVES NO ONE CAN PREDICT WHEN THE INDIVIDUAL RATE CUTS CAN TAKE PLACE AND HOW FAR THEY LEAD MR. HESSE SAID ALL THAT IS CERTAIN IS THAT EACH STEP WILL BE MORE DANGEROUS THAN THE ONE BEFORE TRADERS INTERPRETED THE REMARKS AS CONTINUED TOUGH TALK BY THE BUNDESBANK TO KEEP THE MARK FROM FALLING TOO FAR SMALL COMPANY STOCKS HIT A WALL OF PROFIT TAKING AFTER A FIVE DAY RALLY THAT TOOK PRICES WITHIN A STONE'S THROW OF RECORD HIGHS THOUGH LARGER CYCLICAL ISSUES OUTPERFORMED SMALL STOCKS IN SESSIONS PRECEDING YESTERDAY'S SUGGESTING SMALL CAP ISSUES MIGHT SOON PLAY CATCH UP INVESTORS TOOK PROFITS ACROSS THE BOARD THE RUSSELL TWO THOUSAND INDEX A MEASURE OF THE PERFORMANCE OF SMALL CAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES FELL ZERO POINT ONE TWO POINT OR ZERO POINT ZERO FIVE PERCENT TO END AT TWO HUNDRED FIFTY NINE POINT SIX THREE YESTERDAY'S SESSION MARKED ONLY THE SECOND SINCE THE YEAR BEGAN IN WHICH THE RUSSELL TWO THOUSAND LOST GROUND THE INDEX HAS GAINED ONE POINT OH FOUR POINTS OR ZERO POINT FOUR PERCENT SO FAR THIS YEAR CLOSING IN ON ITS NOVEMBER SECOND NINETEEN NINETY THREE RECORD OF TWO HUNDRED SIXTY POINT ONE SEVEN NASDAQ ISSUES ALSO LOST GROUND AS TRANSPORTATION STOCKS PULLED BACK AFTER RECENT STRENGTH THE NASDAQ COMPOSITE INDEX FELL ONE POINT ONE SEVEN POINTS OR ZERO POINT ONE FIVE PERCENT TO END AT SEVEN HUNDRED EIGHTY FIVE POINT FIVE TWO LESS THAN TWO POINTS FROM ITS ALL TIME CLOSING HIGH NASDAQ NATIONAL MARKET VOLUME ROSE TO TWO HUNDRED SEVENTY ONE POINT FOUR MILLION SHARES FROM MONDAY'S TWO HUNDRED SIXTY POINT TWO MILLION SHARES AND TOTAL NASDAQ VOLUME HIT THREE HUNDRED TWENTY ONE POINT NINE MILLION SHARES UP FROM THREE HUNDRED THIRTEEN POINT FOUR MILLION LOSING ISSUES SQUEEZED AHEAD OF GAINERS ONE THOUSAND FIVE HUNDRED EIGHTY FIVE TO ONE THOUSAND FIVE HUNDRED FORTY SIX QUOTE AS LONG AS STOCKS WERE MOVING UP WE SAW BUYERS QUOTE SAID HEDI REYNOLDS MANAGING DIRECTOR OF NASDAQ TRADING AT MORGAN KEEGAN AND COMPANY BUT WHEN SOMETHING DOWNTICKED PEOPLE SOLD BECAUSE THEY WERE AFRAID TO LOSE THEIR PRICES REYNOLDS ADDED THAT MOVES TENDED TO BE DRIVEN BY NEWS WITH MOST OF THE ACTION TRENDLESS SOME TRUCKING STOCKS WERE HURT BY WEAK EARNINGS FORECASTS AMERICAN FREIGHTWAYS HARRISON ARKANSAS FELL TWO AND ONE QUARTER TO SEVENTEEN AND ONE HALF THE COMPANY ESTIMATES ITS FOURTH QUARTER NET INCOME WILL BE ELEVEN CENTS TO THIRTEEN CENTS A SHARE DOWN FROM A YEAR EARLIER FOURTEEN CENTS A SHARE ALSO CAROLINA FREIGHT DECLINED ONE AND ONE QUARTER TO ELEVEN AND FIVE EIGHTHS ON THE NEW YORK STOCK EXCHANGE THE CHERRYVILLE N. C. COMPANY SAID IT EXPECTS A LARGER THAN ANTICIPATED FOURTH QUARTER LOSS IN ADDITION IT SUSPENDED ITS QUARTERLY DIVIDEND STOCKS IN OTHER SECTORS ALSO MOVED ON OUTLOOKS SEQUENT COMPUTER SYSTEMS LOST ONE AND ONE QUARTER TO THIRTEEN AND THREE QUARTERS AFTER THE COMPANY SAID ITS FISCAL FOURTH QUARTER NET EARNINGS SHOULD BE ABOUT TWENTY TO TWENTY FIVE CENTS A SHARE COMPARED WITH THE YEAR EARLIER PERIOD'S TWENTY THREE CENTS A SHARE THE BEAVERTON OREGON FIRM ALSO SAID IT PLANS TO TAKE A RESTRUCTURING CHARGE AGAINST THIS YEAR'S EARNINGS OF FIFTEEN MILLION DOLLARS TO TWENTY MILLION DOLLARS ACCORDING TO A PRELIMINARY ESTIMATE TARGET THERAPEUTICS JUMPED THREE AND THREE QUARTERS TO TWENTY TWO AND ONE QUARTER AFTER PROJECTING FISCAL THIRD QUARTER NET INCOME OF TWENTY TO TWENTY THREE CENTS A SHARE COMPARED WITH ANALYSTS' ESTIMATES OF THIRTEEN TO SEVENTEEN CENTS A SHARE AND A YEAR EARLIER PER SHARE FIGURE OF THIRTEEN CENTS ADDITIONALLY KEMPER SECURITIES RAISED ITS INVESTMENT RECOMMENDATION ON TARGET TO STRONG BUY FROM LONG TERM BUY CITING STRONG DEMAND FOR THE FREMONT CALIFORNIA MEDICAL DEVICES FIRM'S ENTIRE PRODUCT LINE BOTH DOMESTICALLY AND INTERNATIONALLY ANOTHER NOTEWORTHY GAINER WAS CUMBERLAND FEDERAL BANCORP LOUISVILLE KENTUCKY WHICH JUMPED EIGHT AND THREE QUARTERS TO FIFTY TWO AND ONE QUARTER ON MERGER NEWS FIFTH THIRD BANCORP SAID IT HAS SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE CUMBERLAND AND ITS CUMBERLAND FEDERAL SAVINGS BANK SUBSIDIARY IN A STOCK SWAP VALUED AT ONE HUNDRED FORTY NINE MILLION DOLLARS MEANWHILE FLIR SYSTEMS ROSE ONE AND ONE HALF TO ELEVEN AND ONE HALF THE PORTLAND OREGON CONCERN SAID AFTER THE CLOSE OF MARKETS ON MONDAY THAT IT HAS RECEIVED A SEVEN POINT TWO MILLION DOLLAR CONTRACT FROM THE NAVY FOR TWENTY NAVIGATION THERMAL IMAGING SYSTEMS AND RELATED EQUIPMENT MERCER INTERNATIONAL VANCOUVER BRITISH COLUMBIA ROSE THREE TO NINETEEN AND THREE QUARTERS THE COMPANY SAID ITS SHARE PRICE SHOT UP AFTER ITS PRESIDENT AND CHIEF FINANCIAL OFFICER MET WITH INSTITUTIONAL PORTFOLIO MANAGERS IN NEW YORK AN INITIAL BUY RECOMMENDATION FROM LEGG MASON WOOD WALKER LIFTED GOODY'S FAMILY CLOTHING ONE AND ONE HALF TO THIRTEEN THE OPERATOR OF RETAIL FAMILY CLOTHING STORES IS BASED IN KNOXVILLE TENNESSEE CROSSMAN COMMUNITIES INCORPORATED AN INDIANAPOLIS BASED REGIONAL BUILDER OF SINGLE FAMILY HOMES ROSE ONE TO TWELVE FOLLOWING AN INITIAL BUY RATING FROM RAYMOND JAMES AND ASSOCIATES HOME CONSTRUCTION FIRM D. R. HORTON INCORPORATED ROSE TWO AND ONE HALF TO SEVENTEEN AND ONE HALF THE ARLINGTON TEXAS COMPANY SAID ITS FISCAL FIRST QUARTER NET SALES CONTRACTS INCREASED EIGHTY THREE PERCENT TO EIGHTY ONE POINT TWO MILLION DOLLARS FROM THE YEAR EARLIER PERIOD'S FORTY FOUR POINT TWO MILLION DOLLARS IMPROVED FISCAL FIRST QUARTER EARNINGS BOOSTED REXALL SUNDOWN INCORPORATED ONE AND ONE EIGHTH TO FIFTEEN AND FIVE EIGHTHS THE FORT LAUDERDALE FLORIDA HEALTH PRODUCTS CONCERN SAID NET INCOME FOR THE PERIOD ROSE TO ELEVEN CENTS A SHARE ON MORE SHARES FROM YEAR EARLIER PRO FORMA EARNINGS OF EIGHT CENTS A SHARE CYBERONICS A WEBSTER TEXAS MEDICAL DEVICES FIRM FELL TWO AND ONE QUARTER TO TEN THE COMPANY SAID THE FOOD AND DRUG ADMINISTRATION IN AN INITIAL SCIENTIFIC REVIEW OF AN AMENDED PRE MARKET APPROVAL APPLICATION FOR CYBERONICS' NEUROCYBERNETIC PROSTHESIS SYSTEM HAS FOUND SIGNIFICANT DEFICIENCIES IN THE SUBMISSION THOUGH IT HAS BEEN ACCEPTED FOR FILING THE SYSTEM IS USED TO TREAT CERTAIN SEIZURES IN EPILEPSY PATIENTS NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TOTALED NINETY SEVEN WHILE TWENTY SEVEN HIT NEW LOWS MOST ANALYSTS SAID IT WON'T TAKE MUCH OF A NUDGE TO PUSH SMALL CAP STOCKS TO RECORD HIGHS THIS WEEK BUT SOME OBSERVERS HAVE ADOPTED A CAUTIOUS STANCE TO THE MARKET AS A WHOLE QUOTE THE MARKET THAT MARCHES TO THE MOVEMENT OF BIGGER CYCLICAL STOCKS WITHOUT BEING HELPED BY THE SECONDARY ISSUES EVENTUALLY LEADS TO A MARKET THAT WILL BECOME VERY NARROW QUOTE SAID STEVEN GOLDMAN A MARKET STRATEGIST AT WEEDEN AND COMPANY NICK HYLTON A RETIRED CONTRACTOR HAS GROWN WEARY OF HIS UNRULY NEIGHBORS THE VULTURES TWO HUNDRED OF THEM ROOST SHOULDER TO SHOULDER IN TREES A FEW HUNDRED YARDS AWAY ADJACENT THE HEAVILY POPULATED BLUFFS OF THIS PLANNED COMMUNITY THIRTY FIVE MILES WEST OF BALTIMORE THE VULTURES MOSTLY BLACK VULTURES THAT STAND ABOUT KNEE HIGH WITH WINGSPANS OF MORE THAN FIVE FEET ONCE ATTACKED MR. HYLTON'S PONTOON BOAT CAUSING ONE THOUSAND TWO HUNDRED DOLLARS IN DAMAGE TO ITS UPHOLSTERY BY ONE THEORY THEY TEAR INTO IT BECAUSE IT EVOKES ANIMAL HIDE FROM HIS DINING ROOM HE POINTS OUT A BIG BRICK HOUSE AT THE FAR SIDE OF THE LAKE THE VULTURES DESTROYED ITS ROOF AND FORCED THE OWNER TO ENCLOSE HIS DECK QUOTE I'M A HUNTER QUOTE MR. HYLTON SAYS I HAVE GUNS GOOD GUNS IF PUSH COMES TO SHOVE HE SAYS GESTURING TOWARD HIS VAST DECK OVERLOOKING THE LAKE I'M GOING TO PROTECT WHAT'S MINE CALL IT VULTURE SHOCK WITH VULTURES THRIVING AND EXPANDING THEIR RANGE AND HUMANS DOING THE SAME ENCOUNTERS BETWEEN VULTURES AND PEOPLE ARE ON THE RISE THE PROBLEM GETS ESPECIALLY ACUTE NOW AS MIGRATING VULTURES SETTLE INTO THEIR WINTER ROOSTS SWELLING THE INDIGENOUS POPULATIONS THE BIRDS HAVE DAMAGED CARS BOATS AND LAWN CHAIRS KILLED INFANT LIVESTOCK AND FORCED THE CLOSURE OF AN OUTDOOR CAFE IN VIRGINIA A DOZEN TIMES LAST YEAR VULTURE DROPPINGS KNOCKED OUT HIGHTENSION LINES OPERATED BY THE TENNESSEE VALLEY AUTHORITY THE BIRDS CONTINUE TO CAST THEIR BLEAK SHADOWS OVER WALT DISNEY WORLD IN FLORIDA INVADING TERRAIN SURROUNDING ITS DISCOVERY ISLAND BIRD SANCTUARY THE VIRGINIA OFFICE OF THE FEDERAL ANIMAL DAMAGE CONTROL A. D. C. PROGRAM RECEIVED FIFTY COMPLAINTS ABOUT VULTURES LAST YEAR AN APPOMATTOX VIRGINIA WOMAN REPORTED THAT SIXTY OF THE BIRDS HAD CHASED HER DOG INTO ITS DOGHOUSE AND SURROUNDED THE ENTRANCE TWO CEMETERIES FILED COMPLAINTS AFTER MOURNERS EXPRESSED DISMAY AT FINDING DOZENS OF THE SCAVENGERS PERCHED ON HEADSTONES IT SEEMS VULTURES REALLY DO LIKE CEMETERIES ALTHOUGH THIS HAS LITTLE TO DO WITH ANY INSTINCTIVE AFFINITY IT'S A CONVENIENT OPEN AREA TO LAND SAYS MARTIN LOWNEY HEAD OF THE A. D. C. PROGRAM IN VIRGINIA YOU CAN SET ON A HEADSTONE AND JUST OPEN YOUR WINGS MAN VULTURE CONFRONTATIONS ARE OFTEN EXACERBATED BY THE SIMPLE FACT THAT VULTURES GIVE PEOPLE THE WILLIES WHICH IS UNDERSTANDABLE GIVEN THE VULTURE'S LONG SERVICE AS AN AUGURY OF DEATH MONUMENTS DATING TO TWO THOUSAND SIX HUNDRED FIFTY B. C. SHOW VULTURES SNACKING ON THE BODIES OF SLAIN SOLDIERS LEGEND HOLDS THE VULTURES THAT NOW HAUNT THE BOULDERS OF BIG ROUND TOP AT THE GETTYSBURG NATIONAL MILITARY PARK ARE DESCENDANTS OF A FLOCK THAT ARRIVED JUST AFTER THE GREAT BATTLE TO FEAST ON DEAD AND DYING HORSES AND HAVE LIVED THERE EVER SINCE IN HOPES OF A REPEAT BANQUET A DEACON IN PELAHATCHEE MISSISSIPPI ONCE CALLED FEDERAL ANIMAL CONTROL AGENT FRANK BOYD TO ASK WHETHER LOCAL LEGEND WAS TRUE THAT THE VULTURES TEARING SHINGLES OFF THE CHURCH ROOF HAD COME BECAUSE CHILDREN WERE BURIED IN ITS GRAVEYARD I TOLD HIM NO MR. BOYD RECALLS THE BIRDS QUOTE WERE JUST LOAFIN' QUOTE NORTH AMERICA IS HOME TO TWO COMMON VULTURIDS THE BLACK AND TURKEY VULTURES THE CALIFORNIA CONDOR IS ALSO A VULTURE BUT IS GRAVELY ENDANGERED BLACK VULTURES ARE A DEEP RICH BLACK HAVE BLACK HEADS AND AGGRESSIVE PERSONALITIES AND OFTEN ROOST IN THE COMPANY OF TURKEY VULTURES WHICH ARE MUCH LARGER BUT FAR MORE BASHFUL THEIR BALD RED HEADS ALLOW THEM TO GRAZE THE INTERIOR ORGANS OF ROADSIDE STAPLES FOR SOME REASON HUNDREDS OF VULTURES HAVE SETTLED IN SOUTH BOSTON VIRGINIA VULTURES NOSH AT THE CITY DUMP AND STAND WATCH OVER ONE OF THE TOWN'S TWO CEMETERIES FROM A TWO HUNDRED FOOT T. V. TOWER NEXT DOOR BOB BURNETTE A TOBACCONIST HERE SEES VULTURES WHEELING OVER HIS HOME WHEN HE LEAVES FOR WORK IN THE MORNING AND WHEN HE RETURNS IN THE EVENING IF THEY'RE UP THERE FLYING AROUND CIRCLING OVER YOU HE SAYS YOU JUST FEEL LIKE THEY MUST KNOW SOMETHING YOU DON'T THE VULTURES SPEND THEIR NIGHTS IN THE BACKYARD OF HIS NEIGHBOR JOAN BANK EACH EVENING WHEN SHE COMES HOME FROM WORK SHE TURNS THE KNOB TO ACTIVATE A PROPANE CANNON LENT TO HER BY THE A. D. C. AND TIMED TO MAKE AN EXPLOSIVE SOUND EVERY FEW MINUTES EACH YEAR HOWEVER MORE AND MORE VULTURES GATHER LET ME PUT IT THIS WAY SHE SAYS THEY'RE NOT THE BLUEBIRDS OF HAPPINESS FEDERAL LAW PROHIBITS KILLING VULTURES BUT MRS. BANK SAYS I'M GETTING TO THE POINT WHERE I'M GOING TO RUN OUT SHOOTING TO SOME EXTENT VULTURES ARE VICTIMS OF BAD PRESS VULTURE EXPERTS DEFEND THEM BY NOTING THEY ARE MEMBERS OF THE STORK FAMILY THAT THEY PREFER FRESH MEAT TO ROTTING FLESH AND THAT THEY ARE REALLY VERY CLEAN BIRDS IF THEY DIDN'T BOTHER TO BRUSH OR PREEN THEMSELVES IMAGINE ALL THAT PUTREFIED MESS THEY MIGHT BE CARRYING AROUND SAYS SHEILA PARNESS GABY A VULTURE EXPERT AND ENVIRONMENTAL CONSULTANT IN MIAMI THE VULTURE CAMP CONCEDES THAT VULTURES WILL VOMIT AT THE LEAST PROVOCATION AND THAT THE STUFF THAT COMES OUT STINKS LIKE NOTHING ELSE ON THIS EARTH BUT EVEN VULTURE VOMIT HAS ITS REDEEMING QUALITIES THEY ARGUE JEROME JACKSON AN ORNITHOLOGIST AT MISSISSIPPI STATE UNIVERSITY SUSPECTS THAT A FUNGUS KNOWN TO GROW ONLY IN THE BIRD'S REGURGITATION MAY BE A POTENT ANTIBIOTIC ENABLING VULTURES TO SURVIVE MEALS OF DISEASE LADEN CARRION EDMUND HENCKEL A BIRD LOVER IN MOUNT BETHEL PENNSYLVANIA KNOWN RESPECTFULLY IN THE VULTURE COMMUNITY AS RANGER ED SEES GRIM MAJESTY IN THE VULTURE QUOTE IT'S GONNA BE PROBABLY THE LAST BIRD ON THIS EARTH QUOTE HE SAYS WHEN WE ALL GO HE'S GOING TO BE THE ONE THAT FEEDS ON EVERYTHING ELSE STILL VULTURES DO HAVE A FEW LESS THAN ENDEARING TRAITS FOR ONE THING THEY COOL THEMSELVES BY AIMING LIQUID FECES AT THEIR LEGS WHICH THEN ACT AS RADIATORS THEIR CHICKS THOUGH ADORABLE AND FLUFFY DEPOSIT A VILE SMELLING FILM ON THE HANDS OF ANYONE FOOLISH ENOUGH TO PICK THEM UP FOR A CUDDLE A. D. C. AGENTS REPORT FREQUENT CASES WHERE BLACK VULTURES HAVE KILLED NEWBORN CALVES AND PIGLETS FIRST PECKING OUT THEIR EYES VULTURES FREQUENTLY DINE ON DEPARTED PETS AN EXAMINATION OF PELLETS REGURGITATED BY TURKEY VULTURES IN VIRGINIA FOUND DOG AND CAT HAIRS IN FORTY PERCENT OF THEM BUT THE BIRDS REALLY CAN'T BE FAULTED SAYS MR. BOYD OF ALABAMA LIKE ANY CRITTER THEY'RE JUST EATIN' WHERE THEY CAN FIND A TABLE HE SAYS AND THAT JUST HAPPENS TO INCLUDE THE DECKS BOATS AND SWIMMING BEACHES AT LAKE LINGANORE ITS RESIDENTS WORRY IN PARTICULAR ABOUT HOW VULTURE DEPOSITS MAY AFFECT THE HEALTH OF THE COMMUNITY'S CHILDREN WHO EACH SUMMER CRAWL AND PLAY ON BEACHES WHERE MOBS OF VULTURES OFTEN PAUSE TO SUN THEMSELVES BUT EVEN HERE THE VULTURES HAVE THEIR FANS IN PARTICULAR DICK AND DOROTHY BRIGHT WHO HAVE LIVED ON A BLUFF ADJACENT THE VULTURES FOR FIFTEEN YEARS WE LOVE THEM SAYS MRS. BRIGHT THEY'RE OUR PETS UNTIL ABOUT FIVE YEARS AGO MRS. BRIGHT EVEN FED TWO OF THE BIRDS ONE WITH A MALFORMED BEAK THE OTHER A BROKEN WING SINCE THEY WERE UNABLE TO FEND FOR THEMSELVES SHE FED THEM TURKEY DRUMSTICKS AND MASHED CHICKEN LIVERS THE OTHER VULTURES ALWAYS READY FOR AN EASY MEAL FLOCKED TO HER HOUSE MUCH TO THE CONSTERNATION OF HER NEIGHBORS THEIR PROTESTS EVENTUALLY CAUSED HER TO STOP THE FEEDINGS BUT NOT TO CHANGE HER SYMPATHIES THE VULTURES WERE HERE FIRST SHE SAYS QUOTE WE'RE THE INTRUDERS ON THEIR PROPERTY QUOTE INTERNATIONAL PAPER COMPANY IN PURCHASE N. Y. REPORTED NET INCOME OF ONE HUNDRED MILLION DOLLARS FOR THE FOURTH QUARTER REVERSING THE YEAR EARLIER PERIOD'S LARGE FOURTH QUARTER LOSS THAT INCLUDED A ONE TIME CHARGE FOR PLANT CUTBACKS EARNINGS FOR THE QUARTER WERE ONE HUNDRED MILLION DOLLARS OR EIGHTY ONE CENTS A SHARE COMPARED WITH THE YEAR EARLIER LOSS OF ONE HUNDRED SEVENTY SIX MILLION DOLLARS OR ONE DOLLAR AND FORTY SIX CENTS A SHARE THE YEAR EARLIER FIGURES INCLUDE A TWO HUNDRED SIXTY THREE MILLION DOLLAR CHARGE FOR LAYOFFS FACILITY CLOSINGS AND OTHER BELT TIGHTENING MEASURES SALES FOR THE QUARTER WERE THREE POINT FOUR BILLION DOLLARS UNCHANGED FROM A YEAR AGO THE COMPANY SAID THE LATEST QUARTER'S NET WAS FIFTEEN PERCENT HIGHER THAN A COMPARABLE EIGHTY SEVEN MILLION DOLLAR NET INCOME BEFORE THE SPECIAL CHARGES JOHN A. GEORGES CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE PAPER PRODUCTS COMPANY SAID ALTHOUGH THE FOREST PRODUCTS AND SPECIALTY PRODUCTS BUSINESSES ARE STRONG QUOTE WEAK WORLD WIDE PRICE LEVELS QUOTE CONTINUE TO IMPACT THE BOTTOM LINE PACIFIC TELESIS GROUP AND U. S. WEST INCORPORATED SAID THEY WILL JOINTLY PURSUE THE DEFENSE INFORMATION SYSTEMS NETWORK CONTRACT FOR THE COUNTRY'S WESTERN REGION THE BABY BELLS SAID THE TOTAL VALUE OF THE PROGRAM IS ESTIMATED TO EXCEED ONE BILLION DOLLARS OVER THE NEXT SEVERAL YEARS A SPOKESMAN FOR THE GOVERNMENT HOWEVER SAID THE SIZE AND DETAILS OF THE CONTRACT HADN'T BEEN DETERMINED YET THE NETWORK WILL EVENTUALLY COMBINE MORE THAN ONE HUNDRED DEFENSE DEPARTMENT NETWORKS INTO ONE INTERNATIONAL BROADBAND COMMUNICATIONS PLATFORM FOR THE TRANSMISSION OF VOICE DATA AND VIDEO SIGNALS G. T. E. CORPORATION AND NORTHERN TELECOM LIMITED SAID EARLIER THAT THEY PLANNED TO JOINTLY PURSUE ASPECTS OF THE DEFENSE INFORMATION SYSTEMS NETWORK CONTRACT PACIFIC TELESIS BASED IN SAN FRANCISCO AND U. S. WEST OF DENVER SAID ALMOST HALF OF THE MAJOR MILITARY INSTALLATIONS IN THE CONTINENTAL U. S. ARE LOCATED IN THE SIXTEEN WESTERN STATES THEY SERVE THE BROADBAND NETWORK WILL ALSO INCLUDE THE EASTERN AND SOUTHERN REGIONS UNITEL COMMUNICATIONS INCORPORATED SAID IT WILL CUT ABOUT SIX HUNDRED FIFTY JOBS OR EIGHTEEN PERCENT OF ITS WORK FORCE OVER THE NEXT TWO YEARS AND TAKE OTHER COST CUTTING MEASURES BECAUSE OF INTENSE LONG DISTANCE COMMUNICATIONS COMPETITION IN CANADA THE TORONTO LONG DISTANCE CARRIER SAID IT WILL INSTALL NEW EQUIPMENT TO IMPROVE NETWORK ROUTING EFFICIENCY LEASE INSTEAD OF BUILD DIGITAL ACCESS LINES FOR PRIVATE LINE BUSINESS AND CLOSE SOME EQUIPMENT SITES TO CUT COSTS UNITEL WILL TAKE A RESTRUCTURING CHARGE OF THREE HUNDRED TWENTY FIVE MILLION CANADIAN DOLLARS TWO HUNDRED FORTY SEVEN MILLION U. S. DOLLARS UNITEL CHAIRMAN GEORGE HARVEY SAID THE COMPANY HAD TO CUT COSTS TO KEEP ITS PRICES BELOW QUOTE THE DRASTIC OFTEN PREDATORY QUOTE PRICE DISCOUNTING IN THE BUSINESS COMMUNICATIONS MARKET SET BY CANADIAN COMPETITORS INCLUDING BELL CANADA A UNIT OF B. C. E. INCORPORATED OF MONTREAL UNITEL IS OWNED FORTY EIGHT PERCENT BY CANADIAN PACIFIC LIMITED THIRTY TWO PERCENT BY ROGERS COMMUNICATIONS INCORPORATED AND TWENTY PERCENT BY AMERICAN TELEPHONE AND TELEGRAPH COMPANY AMERICAN HEALTH PROPERTIES INCORPORATED SAID IT NEGOTIATED AN EIGHTY MILLION DOLLAR REVOLVING CREDIT LINE THE REAL ESTATE INVESTMENT TRUST SAID THE THREE YEAR UNSECURED LINE REPLACES A FORTY MILLION DOLLAR FACILITY SET TO EXPIRE IN JUNE NINETEEN NINETY FIVE THE NEW LINE INCLUDES TWO ADDITIONAL BANKS AND IS AT COMPARABLE INTEREST RATES AMERICAN HEALTH SAID ALL OF THE NEW LINE IS AVAILABLE FOR NEW INVESTMENTS QUOTE AMERICA IS NEITHER HELL NOR HEAVEN IT'S A BATTLEFIELD SO DECLARES ONE OF THE PROTAGONISTS OF A NATIVE OF BEIJING IN NEW YORK THE TELEVISION SERIES THAT HAS TAKEN CHINA BY STORM TWO YEARS AGO DYNASTY WAS ALL THE RAGE IN CHINA THE CHINESE PRODUCTION MAY HAVE A LOWER LINGERIE AND CLEAVAGE COUNT THAN THE AMERICAN SERIES BUT IT HAS AT LEAST FIVE OTHER BASIC ELEMENTS IN COMMON RUTHLESS CAPITALISTS AMAZING LOVE PRETZELS SERIOUSLY WAYWARD CHILDREN BIGNAME STARS AND FROM A CHINESE PERSPECTIVE AT LEAST EXOTIC LOCALES THOUGH NATIVE HAS FOR NOW RUN ITS COURSE ON CHINESE TELEVISION THE MINI INDUSTRY IT HAS SPAWNED IS STILL CHURNING SEVERAL BOOKS BASED ON THE SERIES ARE ON SALE IN CHINA TODAY VIDEOTAPES OF THE SERIES ARE AMONG THE HOTTEST ITEMS IN CHINATOWN VIDEOSHOPS THE WORLD OVER AND U. S. PUBLIC TELEVISION PLANS TO SCREEN TWO HOURS OF EXCERPTS IN THE NEW YEAR THIS IS THE STORY WANG QIMING A BEIJING CELLIST PLAYED BY FILM STAR JIANG WEN AND HIS WIFE GUO YAN A DOCTOR ARRIVE IN NEW YORK ON NONRESIDENT VISAS BUT FULL OF HOPE FOR A NEW LIFE THEY ARE QUICKLY DISILLUSIONED UNABLE TO FIND WORK AS A MUSICIAN WANG WASHES DISHES IN A RESTAURANT RUN BY AH CHUN A BUSINESSWOMAN AS COLD BLOODED AS SHE IS BEAUTIFUL GUO GOES TO WORK FOR THE CHINESE SPEAKING DAVID MCCARTHY A SLEAZY SWEATSHOP BOSS PLAYED BY A FORMER AMERICAN DIPLOMAT IN BEIJING ROBERT DALY DAVID LUSTS AFTER GUO USING UNDERHANDED TRICKS HE BREAKS UP WANG'S AND GUO'S MARRIAGE AND WEDS HER HIMSELF WANG TAKES REVENGE BY BECOMING DAVID'S BUSINESS COMPETITOR AND DRIVING HIM INTO BANKRUPTCY HE AND AH CHUN BECOME LOVERS WANG GETS RICH NINGNING WANG'S AND GUO'S TEENAGE DAUGHTER ARRIVES IN AMERICA AND WREAKS HAVOC BANISHING AH CHUN FROM HER FATHER'S HOUSE REVILING HER MOTHER AND SLEEPING WITH OLD MEN AN ESTIMATED FIFTY SIX PERCENT OF CHINA'S VIEWERS TUNED IN TO THE TWENTY ONE PART MINISERIES MORE THAN NORMALLY WATCH THE EVENING NEWS THE CHINESE PRESS CARRIED MANY CRITIQUES AND BACKGROUND ARTICLES ON EVERYTHING FROM THE FILMING IT'S THE FIRST CHINESE TELEVISION SERIES SHOT ENTIRELY ABROAD TO ITS FINANCING THE BEIJING TELEVISION ARTS CENTRE MORTGAGED ITS PROPERTY TO RAISE THE ONE POINT FIVE MILLION DOLLARS NEEDED TO SHOOT THE SERIES THE FIRST TIME THIS METHOD HAS BEEN USED TO FINANCE A T. V. SERIES IN CHINA THERE'S ALREADY ONE BOOK OF ESSAYS AND REVIEWS ON THE SERIES AND ITS SCRIPTS HAVE BEEN PUBLISHED AS WELL A SHANGHAI WRITER IN TAIWAN'S CHINA TIMES WEEKLY EXPRESSED A VIEW COMMON TO MANY OF THE ARTICLES CALLING THE SERIES'S DEPICTION OF OVERSEAS CHINESE LIFE REALISTIC AN ACCURATE PORTRAIT OF THE PEOPLE'S COMPLEX PSYCHOLOGICAL ATTITUDE TOWARD THE RUSH OVERSEAS WHICH BEGAN IN THE EIGHTIES ACCORDING TO THE CHINA DAILY IN BEIJING HOWEVER QUOTE NATIVE QUOTE HAS ALSO SERVED AN IMPORTANT IDEOLOGICAL PURPOSE QUOTE TO REMIND THOSE WHO ENTERTAIN A ROSY AMERICAN DREAM TO BECOME COOLHEADED QUOTE IF NATIVE PORTRAYS AMERICA AS A BATTLEFIELD IT'S ONE IN WHICH THERE ARE NO HEROES ONLY WINNERS AND LOSERS AND YOU DON'T BECOME A WINNER BY PLAYING BY THE RULES CAPITALISM IN THE SERIES'S WORLD IS A CONTEST OF DIRTY TRICKS PLAYED OUT ON A BED OF SLIME TO SUCCEED YOU HAVE TO SELL YOUR SOUL AND FOR EVERY CHINESE PERSON THAT DOES MAKE IT IN NEW YORK THERE ARE UNTOLD OTHERS LIKE A MINOR CHARACTER IN NATIVE WHO FIND PEACE OF MIND AND PERMANENT RESIDENCY IN AMERICA ONLY UNDER A TOMBSTONE NATIVE ISN'T HOWEVER JUST AN EXERCISE IN CAPITALISM BASHING IT HAS A XENOPHOBIC STREAK AS WIDE AS FIFTH AVENUE THE MAJOR AMERICAN CHARACTERS ARE ALMOST ALL CREEPS HYPOCRITES AND RACISTS THEY ARE PORTRAYED AS INCAPABLE OF APPRECIATING ANY ASPECT OF CHINA'S FINE CULTURE AND CIVILIZATION AH CHUN'S FORMER LOVER CARTER EVEN TAKES HER TO COURT FOR ATTEMPTING TO CURE THEIR SON'S OTHERWISE UNTREATABLE ILLNESS WITH CHINESE MEDICINE I CAN'T BELIEVE YOU GOT AN EDUCATION IN AMERICA HE SNARLS THIS IS SORCERY WANG GOES ON TO SAY THAT CAUCASIANS WITH ALL THEIR BODY HAIR ARE MORE MONKEY THAN HUMAN ON ANOTHER LEVEL QUOTE NATIVE QUOTE HAS LESS TO DO WITH THE WEST THAN WITH CHINA ITSELF THE SEAMIER SIDE OF CAPITALISM CUTTHROAT COMPETITION EXPLOITATION OF WORKERS AND CYNICAL DISREGARD FOR MORALITY IS ALIVE AND WELL IN MANY PARTS OF CHINA TODAY MANY CHINESE ARTISTS AND WRITERS ARE FINDING IT HARDER AND HARDER TO MAKE ENDS MEET LIKE THE FICTIONAL CELLIST WANG QIMING A NUMBER OF THEM HAVE GIVEN UP THEIR ART FOR BUSINESS TO ADDRESS THESE ISSUES AS SHARPLY AS NATIVE DOES BUT IN A CHINESE CONTEXT AND ESPECIALLY THROUGH A MASS MEDIUM WOULD HAVE BEEN POLITICAL DYNAMITE THE FINAL SHOT OF NATIVE SHOWS WANG LOOKING OUT THE WINDOW OF HIS ILLEGALLY PARKED WHITE CADILLAC AND RAISING HIS MIDDLE FINGER THE GESTURE IS SUPPOSEDLY A RESPONSE TO SOME AMERICANS IN ANOTHER CAR WHO ARE ANNOYED BY HIS ROAD MANNERS BUT IT IS AIMED LIKE WANG'S GAZE STRAIGHT AT THE CAMERA THE INSULTING GESTURE MAY NOT BE UNIVERSALLY UNDERSTOOD AS SUCH IN CHINA BUT IT'S INTERESTING TO PONDER AT WHOM IT'S ACTUALLY DIRECTED MS. JAIVIN IS CO EDITOR WITH GEREMIE BARME OF NEW GHOSTS OLD DREAMS CHINESE REBEL VOICES TIMES BOOKS NINETEEN NINETY TWO BETRAYED BY MARKETING FOR DECADES JEAN FRANCOIS REVEL WAS ONE OF THE WEST'S STAUNCHEST ANTI COMMUNISTS WRITING A SERIES OF BOOKS AND ARTICLES IN WHICH HE EVISCERATED COMMUNISM AND THOSE WHO REFUSED TO FACE IT SQUARELY THE TITLE FOR HIS MOST SUCCESSFUL BOOK WAS A LAPEL GRABBING GEM QUOTE HOW DEMOCRACIES PERISH QUOTE PUBLISHED IN NINETEEN EIGHTY THREE IT SOLD ONE HUNDRED THOUSAND COPIES IN FRANCE AND MADE A BIG SPLASH IN THE U. S. BUT NOW THAT IT IS SOVIET COMMUNISM THAT HAS PERISHED RATHER THAN WESTERN DEMOCRACY THE TITLE DOESN'T SEEM SO BRILLIANT INSTEAD OF BEING KNOWN AS THE COLD WARRIOR WHO GOT EVERYTHING RIGHT ABOUT COMMUNISM MR. REVEL IS NOW FAMOUS AS THE CASSANDRA WHO GOT EVERYTHING WRONG ABOUT DEMOCRACY THE THEME OF MY BOOK WAS NOT THAT DEMOCRACIES WOULD PERISH MR. REVEL NOW WRITES DANCING OUT FROM UNDER THE RUBBLE IN HIS FOLLOW UP BOOK DEMOCRACY AGAINST ITSELF THE FUTURE OF THE DEMOCRATIC IMPULSE FREE PRESS TWO HUNDRED SEVENTY EIGHT PAGES TWENTY FOUR DOLLARS AND NINETY FIVE CENTS OF COURSE HE IS RIGHT UP TO A POINT THE TITLE WAS MORE OF A WARNING OR AN IRONIC STATEMENT THAN A PREDICTION BUT THESE DAYS ONE CAN'T EXPECT OP ED GLADIATORS TO PASS UP A SHOT AT MR. REVEL SIMPLY ON ACCOUNT OF IRONIC INTENT AND IN TRUTH IT IS HARD TO IMAGINE MR. REVEL AGREEING TO LAY DOWN HIS MIGHTY PEN IF HE FOUND ONE OF HIS POLITICAL OPPONENTS SIMILARLY VULNERABLE NOR IS IT INAPPROPRIATE THAT MR. REVEL SHOULD FIND HIMSELF HOISTED BY HIS OWN TALENT FOR THE EYE POPPING PHRASE HE IS A POLEMICIST WHICH IN THIS LATEST BOOK HE NICELY DESCRIBES AS THE ABILITY TO APPLY LOGIC AT WHITE HEAT MR. REVEL WRITES THE SORT OF FRENCH BOOK THAT THUNDERS ACROSS A DOZEN SPECIALIZATIONS IS FEARLESS WITH SWEEPING ASSERTIONS AND IS EITHER DELIGHTFULLY PROVOCATIVE OR TOTALLY INFURIATING MR. REVEL HAS SUCCEEDED IN THIS LINE OF WORK BY TAKING BOLD POSITIONS THAT AIM DIRECTLY AT PARISIAN PIETIES IN NINETEEN SEVENTY HE WROTE WITHOUT MARX OR JESUS WHICH CELEBRATED AMERICA AS THE CENTER OF LEFTWING SOCIAL REFORM AT A TIME WHEN THE BIEN PENSANTS THOUGHT OF THE U. S. AS THE CITADEL OF IMPERIALIST REACTION HE ONCE WROTE A BOOK CALLED FOR ITALY WHICH NATURALLY WAS AN ATTACK ON ITALY HIS MAJOR ANTI COMMUNIST BOOKS SCORNED REVOLUTIONARY ROMANTICISM AND SOPHISTICATED DETENTISTS DEMOCRACY AGAINST ITSELF IS HIS LEAST SUCCESSFUL BOOK IN PART BECAUSE PARISIAN CONVENTIONAL WISDOM NO LONGER OFFERS MANY IDEOLOGICAL TARGETS HE HAS COLLECTED HIS THOUGHTS FROM THE NINETEEN NINETY TO NINETY ONE PERIOD ON EVERYTHING FROM AFRICAN UNDERDEVELOPMENT TO THE WEST'S FONDNESS FOR MIKHAIL GORBACHEV BUT THE ARGUMENTS WANDER IN SEARCH OF A PIETY TO DEMOLISH HIS JUDGMENTS ARE GENERALLY SOUND BUT ARE NO MORE SOPHISTICATED THAN THE POINTS MANY PEOPLE WERE MAKING IN NEWSPAPERS AT THE TIME THE THEME THAT LOOSELY UNITES THE DIVERSE SUBJECT AND WHICH REBOUNDS BACK TO QUOTE HOW DEMOCRACIES PERISH QUOTE IS THAT HUMAN BEINGS HAVE A PREDISPOSITION TO TOTALITARIANISM THERE IS WITHIN US AN UNCHANGED IMPULSE WHICH PREFERS FAILURE TO SUCCESS MISFORTUNE TO HAPPINESS MIGHT OVER RIGHT VIOLENCE OVER JUSTICE HE WRITES HE'S NOT SAYING THAT MANKIND IS SUICIDAL MERELY THAT WE WILL ALWAYS FEEL TEMPTED BY UTOPIANISM SO THAT THE BETTER PART OF US MUST BE FOREVER AT WAR WITH THAT TEMPTATION THIS ATTITUDE EXPLAINS THE VEHEMENCE OF MR. REVEL'S STYLE OF ARGUMENT BUT IT ALSO EXPLAINS WHY MR. REVEL SEEMS OFF STRIDE OR UNORIGINAL WHEN TALKING ABOUT INTRADEMOCRATIC DISPUTES HE IS BEST WHEN THE SURVIVAL OF DEMOCRACY IS AT STAKE A SUPERB CHAPTER IN THIS BOOK CONCERN'S THE WEST'S PUSILLANIMOUS REACTION TO THE FATWA AGAINST SALMAN RUSHDIE A DEATH THREAT AGAINST A MAN SIMPLY FOR WHAT HE WROTE DOES REPRESENT AN ASSAULT ON DEMOCRACY AND MR. REVEL IS DEVASTATING IN HIS ASSAULT ON FRANCOIS MITTERRAND MARGARET THATCHER AND OTHERS WHO FAILED TO RECOGNIZE IT AS A MATTER OF HIGH PRINCIPLE BUT THEN MR. REVEL GOES TOO FAR AND DESCRIBES ISLAM AS FUNDAMENTALLY HOSTILE TO DEMOCRACY THE COMMUNIST THREAT FOR THE NINETEEN NINETIES MR. REVEL'S BELIEF IN THE ETERNAL HUMAN WEAKNESS FOR UTOPIANISM ALSO CAUSES HIM TO ASCRIBE TOO MUCH POWER TO HIS PHILOSOPHICAL OPPONENTS SIMPLY BECAUSE JEAN PAUL SARTRE OR NORMAN MAILER SAID SOMETHING FOOLISH ABOUT COMMUNISM DID NOT MEAN THAT THE WHOLE WORLD BELIEVED IT AND IN FACT IT DID JOT MOST OF HUMANITY KNEW THAT COMMUNISM WAS A SCAM RIGHT FROM THE START AND DIDN'T FEEL TEMPTED IN THE SLIGHTEST AND NOWADAYS EVEN MOST INTELLECTUALS HAVE COME TO ACCEPT THAT COMMUNISM IS MALEVOLENT RATHER THAN AN ALTERNATIVE SYSTEM THAT WOULD EVENTUALLY MERGE WITH CAPITALISM ONE WOULD HAVE THOUGHT THAT THE LESSON OF THE RECENT PAST IS NOT THAT PEOPLE HAVE A WEAKNESS FOR TOTALITARIANISM BUT THAT EVEN AFTER LIVING UNDER COMMUNISM FOR SEVENTY YEARS PEOPLE STILL HAVE A HUNGER FOR DEMOCRACY FOR NICE PRODUCTS FOR FREE EXPRESSION FOR A LIFE OF DIGNITY MR. REVEL'S BOOK REFLECTS NONE OF THIS HE FOUGHT BRAVELY AGAINST COMMUNISM BUT THESE DAYS THE WAY TO ENRICH DEMOCRACY MAY BE TO ENJOY ITS FRUITS RATHER THAN TO BASH ITS FEW REMAINING FOES SUGGESTED TITLE FOR MR. REVEL'S NEXT BOOK HOW DEMOCRACIES PICNIC MR. BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE GREAT LAKES CHEMICAL CORPORATION'S ASSOCIATED OCTEL UNIT AGREED TO PROVIDE ETHYL CORPORATION WITH LEAD ANTIKNOCK COMPOUND BEGINNING JULY FIRST THE PACT WILL MAKE OCTEL THE WORLD'S DOMINANT MAKER OF THE ADDITIVE KNOWN AS TETRAETHYL LEAD BUT THE TWO COMPANIES STRESSED THAT THEY'LL REMAIN COMPETITORS IN THE DWINDLING MARKET FOR THE PRODUCT GREAT LAKES A SPECIALTY CHEMICAL AND FUEL ADDITIVE MAKER BASED IN WEST LAFAYETTE INDIANA SAID THAT WITH THE PACT OCTEL NOW EXPECTS TO DEFER CAPACITY CUTBACKS FOR SEVERAL YEARS ETHYL BASED IN RICHMOND VIRGINIA SAID ITS ETHYL CANADA UNIT WILL END PRODUCTION OF LEAD ANTIKNOCK MATERIALS ITS SARNIA CANADA PLANT MARCH THIRTY FIRST CUTTING ABOUT ONE HUNDRED THIRTY FIVE JOBS NOLAND COMPANY REPORTED A TWO POINT SEVEN PERCENT INCREASE IN DECEMBER SALES TO THIRTY THREE POINT EIGHT MILLION DOLLARS FROM THE YEAR AGO THIRTY TWO POINT NINE MILLION DOLLARS CITING MODEST INCREASES IN RESIDENTIAL CONSTRUCTION NOLAND A WHOLESALE DISTRIBUTOR OF PLUMBING HEATING AIR CONDITIONING AND ELECTRICAL EQUIPMENT SAID THE INCREASE BOOSTED FOURTH QUARTER SALES TO ONE HUNDRED POINT SIX MILLION DOLLARS FROM THE YEAR AGO ONE HUNDRED POINT ONE MILLION DOLLARS BUT SALES FOR THE YEAR FELL TWO POINT TWO PERCENT TO FOUR HUNDRED THREE MILLION DOLLARS FROM FOUR HUNDRED TWELVE POINT ONE MILLION DOLLARS SEAGATE TECHNOLOGY INCORPORATED CONTINUING TO SEE PROFITS HIT BY PRICE WARS IN THE HARD DRIVE MARKET REPORTED A THIRTY THREE PERCENT DROP IN FISCAL SECOND QUARTER NET INCOME THE SCOTTS VALLEY CALIFORNIA DISK DRIVE MAKER REPORTED NET INCOME OF FORTY TWO POINT SEVEN MILLION DOLLARS OR FIFTY NINE CENTS A SHARE FOR THE QUARTER ENDED DECEMBER THIRTY FIRST COMPARED WITH SIXTY THREE POINT THREE MILLION DOLLARS OR NINETY ONE CENTS A SHARE A YEAR EARLIER SALES ROSE TO EIGHT HUNDRED FIFTEEN POINT NINE MILLION DOLLARS FROM SEVEN HUNDRED SEVENTY SIX POINT SEVEN MILLION DOLLARS A YEAR EARLIER SEAGATE'S SECOND QUARTER RESULTS INCLUDE A ONE POINT THREE MILLION DOLLAR PRETAX CHARGE FOR THE COMPLETION OF THE ACQUISITION OF CALTEX SOFTWARE INCORPORATED THE EARNINGS DROP WAS CAUSED BY A PRICE WAR AS RIVAL DRIVE MAKERS INCREASED PRODUCTION TO VIE FOR MARKET SHARE SAID ALAN SHUGART SEAGATE'S CHIEF EXECUTIVE OFFICER GROSS PROFIT MARGINS FELL TO NINETEEN PERCENT FOR THE QUARTER FROM TWENTY FOUR PERCENT A YEAR EARLIER HE SAID DRS INDUSTRIES INCORPORATED SAID IT WILL CHANGE ITS NAME TO FAMILY BARGAIN CORPORATION TOMORROW THE APPAREL RETAILER AND DISTRIBUTION COMPANY SAID THE NEW NAME MORE ACCURATELY REFLECTS ITS PRINCIPAL BUSINESS OFFPRICE APPAREL RETAILING NEW YORK TIMES COMPANY NEW YORK SAID IT PLANS A PRETAX CHARGE OF THIRTY MILLION DOLLARS IN FOURTH QUARTER NINETEEN NINETY THREE PROFIT REFLECTING A PLAN TO CUT WHITE COLLAR STAFF AT THE NEW YORK TIMES NEWSPAPER OVER THE NEXT FEW YEARS THE COMPANY SAID THE CHARGE EQUAL TO NINETEEN CENTS A SHARE IS LINKED TO SEVERANCE AND OTHER COSTS OF THE PROTRACTED LAYOFFS OF CLERICAL SALES NEWS AND EDITORIAL EMPLOYEES A SPOKESWOMAN SAID THE TIMES DOESN'T BREAK OUT ITS WHITE COLLAR EMPLOYEES FROM ITS TOTAL WORK FORCE OF TEN THOUSAND IN JULY NINETEEN NINETY ONE THE TIMES LAID OFF ABOUT ONE HUNDRED SIXTY WHITE COLLAR STAFF SHE SAID THE NEWSPAPER GUILD OF NEW YORK WHICH REPRESENTS ABOUT ONE THOUSAND SIX HUNDRED EDITORIAL AND COMMERCIAL STAFFERS AT THE TIMES SAID THE UNION'S PRIMARY CONCERN IS THAT TIMES MANAGEMENT MAY TRY TO LAY OFF WORKERS ON AN AD HOC BASIS RATHER THAN ON THE BASIS OF SENIORITY THE TIMES EMPLOYEES' CONTRACT EXPIRED IN MARCH NINETEEN NINETY THREE FIFTH THIRD BANCORP SAID IT HAS AGREED TO ACQUIRE CUMBERLAND FEDERAL BANCORPORATION IN A STOCK SWAP WITH AN INDICATED VALUE OF ABOUT ONE HUNDRED FORTY NINE MILLION DOLLARS CUMBERLAND OF LOUISVILLE KENTUCKY HAS ONE POINT ONE BILLION DOLLARS IN ASSETS FIFTH THIRD HAS ELEVEN POINT FOUR BILLION DOLLARS IN ASSETS THE CINCINNATI BANK HOLDING COMPANY WHICH ALREADY HAS A PRESENCE IN NORTHERN AND CENTRAL KENTUCKY SAID THIS WILL BE ITS BIGGEST ACQUISITION IN THE STATE UNDER THE DEFINITIVE AGREEMENT CUMBERLAND SHAREHOLDERS WILL RECEIVE FIFTH THIRD STOCK WORTH FIFTY SEVEN DOLLARS FOR EACH CUMBERLAND SHARE THE EXCHANGE RATIO WILL BE DETERMINED BASED ON FIFTH THIRD'S AVERAGE PRICE DURING THE TWENTY DAYS BEFORE THE TRANSACTION CLOSES BASED ON THE MOST RECENT TWENTY DAY TRADING PERIOD CUMBERLAND SHAREHOLDERS WOULD RECEIVE ONE POINT ONE ONE SHARES OF FIFTH THIRD FOR EACH CUMBERLAND SHARE FIFTH THIRD EXPECTS TO CLOSE THE TRANSACTION IN THE THIRD QUARTER IN LATE NASDAQ STOCK MARKET TRADING FIFTH THIRD WAS QUOTED AT FIFTY DOLLARS AND TWENTY FIVE CENTS DOWN EIGHTY SEVEN POINT FIVE CENTS PIZZA INN INCORPORATED SAID IT PLANS TO OPEN AT LEAST SIXTY RESTAURANTS IN BRAZIL PARAGUAY AND URUGUAY UNDER A LICENSING AGREEMENT WITH BRASIF COMERCIAL EXPORTACAO E. IMPORTACAO COMPANY THE NEW PIZZA INN RESTAURANTS WILL MARK THE COMPANY'S FIRST SOUTH AMERICAN PRESENCE TERMS OF THE LICENSING AND ROYALTY AGREEMENT WEREN'T DISCLOSED CENTRAL MAINE POWER CORPORATION CITING THE HIGH PRICE OF ALTERNATE ENERGY SUPPLIES SAID IT WILL LAY OFF TWO HUNDRED TWENTY FIVE EMPLOYEES ABOUT TEN PERCENT OF ITS WORK FORCE AND CUT ITS OPERATING BUDGET BY TWENTY TWO MILLION DOLLARS OR TWELVE PERCENT THIS YEAR THE MEASURES WERE TAKEN TO STABILIZE RISING ELECTRICAL RATES WHICH HAVE JUMPED FORTY PERCENT OVER THE PAST FIVE YEARS THE INVESTOR OWNED UTILITY SAID COMPANY SPOKESMAN MARK ISHKANIAN SAID THE UTILITY'S WOES STEM FROM EXPENSIVE LONG TERM CONTRACTS IT SIGNED WITH NONTRADITIONAL ELECTRICAL PRODUCERS WOOD BURNING PLANTS TRASH INCINERATORS AND PAPER COMPANIES CENTRAL MAINE OF PORTLAND MAINE ENTERED INTO THE CONTRACTS AS PART OF A NINETEEN SEVENTY EIGHT FEDERAL LAW DESIGNED TO ENCOURAGE ALTERNATE SUPPLIES OF ELECTRICITY THE COMPANY IS TRYING TO BUY OUT OR RENEGOTIATE THE CONTRACTS MANY OF WHICH DON'T EXPIRE UNTIL THE NEXT CENTURY MOVING TO RESTRUCTURE UNDER ITS NEW CHAIRMAN WESTINGHOUSE ELECTRIC CORPORATION ANNOUNCED FOURTH QUARTER AFTER TAX CHARGES TOTALING ABOUT NINE HUNDRED SIX MILLION DOLLARS TO CUT WORKERS SELL BUSINESSES AND SHORE UP ITS UNDERFUNDED PENSION PLAN THE CHARGE ESTIMATED TO BE ABOUT ONE POINT THREE BILLION DOLLARS ON A PRETAX BASIS IS THE LATEST ATTEMPT BY WESTINGHOUSE TO CLEAN UP PROBLEMS STEMMING FROM A DISASTROUS FORAY INTO FINANCIAL SERVICES AS WELL AS SLUGGISH GROWTH IN ITS TRADITIONAL POWER GENERATION AND DEFENSE ELECTRONICS BUSINESSES AS PART OF THE RESTRUCTURING THE PITTSBURGH COMPANY WILL CUT SIX THOUSAND JOBS OVER THE NEXT TWO YEARS OR ABOUT ELEVEN PERCENT OF ITS WORK FORCE WITH THREE THOUSAND FOUR HUNDRED LAYOFFS THE PLAN ALSO INCLUDES A PLANNED FIVE HUNDRED MILLION DOLLAR PREFERRED STOCK OFFERING TO BUOY ITS BALANCE SHEET AND A CUT IN THE ANNUAL DIVIDEND TO TWENTY CENTS A SHARE FROM FORTY CENTS SAVING ABOUT SIXTY EIGHT MILLION DOLLARS A YEAR IN AN INTERVIEW YESTERDAY BEFORE MEETING WITH SECURITIES ANALYSTS IN NEW YORK MICHAEL H. JORDAN WESTINGHOUSE CHAIRMAN AND CHIEF EXECUTIVE OFFICER CAUTIONED AGAINST EXPECTING A QUICK FIX QUOTE THERE IS NO INSTANT MAGIC NO RABBIT IN THE HAT QUOTE MR. JORDAN SAID HE ADDED THAT HE TOLD WESTINGHOUSE'S BOARD RECENTLY THAT THIS IS NOT A ONE YEAR QUICK BOUNCE BACK OF EARNINGS THIS IS THREE YEARS OF SLUGGING IT OUT INVESTORS SHOWED LITTLE ENTHUSIASM FOR THE PLAN WESTINGHOUSE'S STOCK FELL TWELVE POINT FIVE CENTS TO CLOSE AT FOURTEEN DOLLARS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BUT NICHOLAS P. HEYMANN AN ANALYST WITH NATWEST SECURITIES CORPORATION CALLED THE PLAN REASONABLE MR. HEYMANN ADDED HE MADE A CREDIBLE CASE THAT ALL THE BUGS ARE SWEPT OUT FROM UNDER THE RUG THERE WON'T BE ANY MORE DISAPPOINTMENTS AND IF THERE ARE AS JORDAN SAID SOMEBODY ELSE WILL BE RUNNING THE COMPANY THE RESTRUCTURING IS THE FIFTY SEVEN YEAR OLD MR. JORDAN'S FIRST MAJOR INITIATIVE AT WESTINGHOUSE SINCE HE TOOK OVER THE TOP POSTS THERE JUNE THIRTIETH HE SUCCEEDED PAUL E. LEGO WHO RESIGNED A YEAR AGO UNDER PRESSURE AFTER THE COMPANY RECORDED FIVE BILLION DOLLARS IN CHARGES LARGELY FROM BAD LOANS IN ITS FINANCIAL SERVICES UNIT QUOTE FUNDAMENTALLY WE HAVE A CORE OF VERY SOUND BUSINESSES THAT WE JUST NEED TO UNBURDEN QUOTE MR. JORDAN SAID IT'S LIKE TRYING TO RUN A FOUR MINUTE MILE WITH A FIFTY POUND BACKPACK YOU'VE GOT TO TRY TO SHED IT TO GET A HEAD OF STEAM HE CONCEDED THAT WHATEVER WE DO WILL NOT MEET WALL STREET'S EXPECTATIONS BUT SAID HE DOESN'T FORESEE ADDITIONAL MAJOR CHARGES HE ADDED THAT HE REALIZES WESTINGHOUSE CAN'T CONTINUE TO UNVEIL A CHARGE EACH YEAR AS IT HAS IN THE PAST MR. JORDAN SAID THE COMPANY ALREADY HAS CUT TWENTY PERCENT TO TWENTY FIVE PERCENT OF ITS WORK FORCE FROM NINETEEN EIGHTY EIGHT THROUGH NINETEEN NINETY THREE SO IT'S NOT LIKE PEOPLE ARE JUST SITTING ON THEIR HANDS ON AN PRETAX BASIS THE CHARGES INCLUDE THREE HUNDRED FIFTY MILLION DOLLARS FOR JOB CUTS TWO HUNDRED FIFTEEN MILLION DOLLARS FOR DIVESTING AND RESTRUCTURING NONESSENTIAL BUSINESSES AND ONE HUNDRED EIGHTY FIVE MILLION DOLLARS TO RESOLVE LEGAL DISPUTES AND AN ENVIRONMENTAL CLEANUP IN INDIANA ON AN AFTER TAX BASIS THERE IS ALSO A NINETY FIVE MILLION DOLLAR CHARGE FOR DISCONTINUED OPERATIONS IN ADDITION WESTINGHOUSE SAID CHANGES IN ITS UNDERFUNDED PENSION PLAN WILL FORCE A TWO HUNDRED FIFTY FIVE MILLION DOLLAR AFTER TAX CHARGE TO EQUITY IN PART FOR CUTTING ITS ASSUMED DISCOUNT RATE TO SEVEN POINT TWO FIVE PERCENT FROM EIGHT PERCENT THE COMPANY SAID THAT CHARGE WON'T AFFECT EARNINGS WESTINGHOUSE ALSO SAID IT WILL PUT TWO HUNDRED MILLION DOLLARS OF ITS COMMON STOCK INTO THE PENSION PLAN AND WESTINGHOUSE WILL TAKE A FIFTY SIX MILLION DOLLAR AFTERTAX CHARGE FOR A CHANGE IN HOW IT ACCOUNTS FOR CERTAIN EMPLOYEE BENEFITS WESTINGHOUSE ALSO SAID IT TOOK ITS UNPROFITABLE KNOLL FURNITURE UNIT OFF THE SALE BLOCK WESTINGHOUSE COULDN'T FIND A BUYER WILLING TO PAY A HIGH ENOUGH PRICE MR. JORDAN SAID THE UNIT WILL CHANGE ITS STRATEGY TO TARGET SMALLER CUSTOMERS INSTEAD OF ENTIRE OFFICE BUILDINGS THAT SHOULD PRODUCE A TURNAROUND IN TWO OR THREE YEARS HE SAID WHERE WE GO FROM THERE I DON'T KNOW MR. JORDAN ADDED THAT HE EXPECTS THE COMPANY TO NAME A NEW CHIEF FINANCIAL OFFICER BY THE END OF THE MONTH WARREN H. HOLLINSHEAD SAID IN SEPTEMBER THAT HE WOULD RETIRE FROM THE POST MR. JORDAN SAID HE VIEWS THE SALE OF FIVE HUNDRED MILLION DOLLARS OF PREFERRED STOCK IN THE YEAR'S FIRST HALF AS CRUCIAL TO WESTINGHOUSE'S SUCCESS THE COMPANY MUST REBUILD ITS EQUITY BASE WHICH HAS BEEN ERODED BY PAST CHARGES AND RESTORE ITS FINANCIAL FLEXIBILITY FOR INSTANCE IT WANTS TO INVEST FIFTY MILLION DOLLARS IN CHINA THIS YEAR IN JOINT VENTURES IN POWER GENERATION MOREOVER OVERSEAS CUSTOMERS HAVE EXPRESSED CONCERN ABOUT WESTINGHOUSE'S FINANCIAL SITUATION MANY ON WALL STREET CONSIDER WESTINGHOUSE TO BE LARGELY IN SLOW GROWTH BUSINESSES BUT MR. JORDAN SAID QUOTE THE OPPORTUNITIES FOR GROWTH IN OUR CORE BUSINESSES ARE STRONGER THAN I BELIEVED QUOTE FOR INSTANCE IN POWER GENERATION THE COMPANY CAN BOOST ITS HIGHLY PROFITABLE SERVICE BUSINESS BY WORKING WITH CUSTOMERS TO SOLVE PROBLEMS INSTEAD OF SIMPLY PITCHING PARTS IN BROADCASTING HE SAID WESTINGHOUSE IS AIMING FOR THE TOP SPOT IN THE RADIO INDUSTRY WHERE IT'S NUMBER THREE NOW WESTINGHOUSE IS REDUCING COSTS BY COMBINING OPERATIONS EVEN IN NUCLEAR POWER LARGELY CONSIDERED A STAGNANT INDUSTRY MR. JORDAN SAID WESTINGHOUSE HAS NEW BUSINESS OPPORTUNITIES IN UPGRADING PLANTS IN EASTERN EUROPE AND THE FORMER SOVIET UNION IN THE U. S. WESTINGHOUSE CAN SNAG BUSINESS BY HELPING HIGH COST NUCLEAR POWER PLANTS CUT MAINTENANCE AND ENGINEERING EXPENSES IN NINETEEN NINETY TWO'S FOURTH QUARTER WESTINGHOUSE POSTED A LOSS OF ONE POINT ONE EIGHT BILLION DOLLARS OR THREE DOLLARS AND FORTY FOUR CENTS A SHARE ON REVENUE OF TWO POINT THREE FIVE BILLION DOLLARS BUSINESSES ON THE BLOCK INCLUDE PARTS OF THE COMPANY'S ENVIRONMENTAL SYSTEMS UNIT SUCH AS ITS RESOURCE ENERGY SYSTEMS COMPRISING FOUR WASTE TO ENERGY PLANTS AND CONTROLMATIC A GERMAN BASED EMISSIONS CONTROL AND INSTRUMENTATION BUSINESS WESTINGHOUSE ALSO MAY SELL PARTS OF ITS INDUSTRIAL PRODUCTS AND SERVICES GROUP IN ADDITION IT MOVED UP PLANS TO SELL ITS REAL ESTATE DEVELOPMENT ARM TO THIS YEAR FROM NINETEEN NINETY FIVE GAUTAM NAIK CONTRIBUTED TO THIS ARTICLE NINTENDO OF AMERICA INCORPORATED SAID IT WILL LAY OFF ONE HUNDRED THIRTY SIX WORKERS AND CLOSE MANUFACTURING OPERATIONS IN REDMOND WASHINGTON MOVING TO MEXICO THE PRODUCTION OF HARDWARE AND SOFTWARE FOR LATIN AMERICAN MARKETS THE U. S. UNIT OF JAPAN'S NINTENDO COMPANY HAD USED THE PLANT TO MAKE GAME COMPUTERS AND SOFTWARE FOR LATIN AMERICA BUT IMPORTED FROM JAPAN ALL PRODUCTS INTENDED FOR THE U. S. MARKET BUT LATIN AMERICAN MARKETS HAVE GROWN RAPIDLY SAID PHILIP ROGERS NINTENDO'S VICE PRESIDENT OF OPERATIONS AND QUOTE THE MOST EFFECTIVE WAY TO SERVE THAT MARKET WAS TO TRANSFER MANUFACTURING TO MEXICO QUOTE SEPARATELY NINTENDO SAID IT SETTLED A LAWSUIT AGAINST TAIWAN BASED UNITED MICROELECTRONICS CORPORATION AND ITS U. S. UNIT THE SUIT ALLEGED COPYRIGHT AND TRADEMARK INFRINGEMENTS IN THE SALE OF COUNTERFEIT NINTENDO VIDEO GAMES THE SETTLEMENT OF THE SUIT BROUGHT IN U. S. DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA CALLS FOR UNITED TO COMBAT PIRACY OF NINTENDO GAMES RETROACTIVE TAX CHANGES FACE A STIFF TEST SOON IN THE SUPREME COURT DOES THE GOVERNMENT HAVE THE RIGHT TO CHANGE TAX LAWS RETROACTIVELY THAT'S WHAT A LOT OF PEOPLE WANTED TO KNOW AFTER THE NINETEEN NINETY THREE TAX LAW PASSED LAST AUGUST RAISED RATES ON MANY UPPER INCOME TAXPAYERS AS OF JANUARY FIRST NINETEEN NINETY THREE FOR DECADES THE SUPREME COURT AND FEDERAL APPEALS COURTS HAVE SAID THE GOVERNMENT HAS THAT RIGHT NOW THIS QUESTION HAS RE EMERGED IN THE CASE OF U. S. VERSUS CARLTON TO BE ARGUED FEBRUARY TWENTY EIGHTH THE SUPREME COURT AGREED TO REVIEW THE CASE AFTER A FEDERAL APPEALS COURT IN NINETEEN NINETY TWO INVALIDATED AN ESTATE TAX CHANGE THAT CONGRESS PASSED IN DECEMBER NINETEEN EIGHTY SEVEN AND MADE RETROACTIVE TO OCTOBER NINETEEN EIGHTY SIX THAT CHANGE WAS QUOTE SINGULARLY HARSH AND OPPRESSIVE QUOTE AND VIOLATED DUE PROCESS ARGUES RUSSELL ALLEN OF O'MELVENY AND MYERS LAWYERS FOR CARLTON THE CASE WILL BE WATCHED CLOSELY SAYS ALAN HOROWITZ OF MILLER AND CHEVALIER A WASHINGTON LAW FIRM THE DECISION SHOULD TELL IF THE COURT WILL CONSIDER ANY RELAXATION OF WHAT HAVE BEEN VIRTUALLY INSURMOUNTABLE BARRIERS TO SUCH CHALLENGES WHATEVER THE OUTCOME SOME REPUBLICAN SENATORS STILL HOPE TO PERSUADE CONGRESS TO REPEAL RETROACTIVE PROVISIONS OF THE NEW LAW THE LOBBYING EMPIRE STRIKES BACK AT REPEAL OF LOBBYING EXPENSE DEDUCTIONS LOBBYISTS SUFFERED A BIG BLOW LAST YEAR WHEN CONGRESS AT PRESIDENT CLINTON'S URGING ELIMINATED DEDUCTIBILITY OF MOST LOBBYING EXPENSES EFFECTIVE THIS YEAR BUT SOME FREQUENTERS OF GUCCI GULCH STILL REFUSE TO ADMIT DEFEAT RECENTLY ELEVEN NONPROFIT TRADE GROUPS AND PROFESSIONAL SOCIETIES INCLUDING THE AMERICAN SOCIETY OF ASSOCIATION EXECUTIVES FILED A LAWSUIT CONTENDING THEIR RIGHTS OF FREE SPEECH PETITION AND ASSOCIATION ARE IMMINENTLY THREATENED BY THE NEW RULES BUT SOME TAX LAWYERS DISAGREE DONALD ALEXANDER A WASHINGTON LAWYER AT AKIN GUMP AND A FORMER I. R. S. COMMISSIONER CALLS THE RULES BAD TAX POLICY BUT NOT UNCONSTITUTIONAL MEANWHILE BUSINESSES ARE TRYING TO PERSUADE I. R. S. REGULATION WRITERS TO EASE RECORD KEEPING BURDENS AND CLARIFY MANY KEY ISSUES SUCH AS HOW TO DEFINE LOBBYING TURNING IN TAX EVADERS TO THE I. R. S. CAN BE SURPRISINGLY LUCRATIVE YOU CAN EARN A HANDSOME REWARD FROM THE I. R. S. IF YOU HAND OVER INFORMATION THAT ENABLES IT TO COLLECT TAXES FROM DEADBEATS TOTAL REWARDS PAID IN THE YEAR ENDED SEPTEMBER THIRTIETH SOARED TO A RECORD FIVE POINT THREE MILLION DOLLARS FROM ONE POINT SEVEN MILLION DOLLARS THE YEAR BEFORE EASILY ECLIPSING THE PREVIOUS RECORD OF TWO POINT EIGHT MILLION DOLLARS IN NINETEEN NINETY THE I. R. S. PAID EIGHT HUNDRED TWENTY NINE REWARDS LAST YEAR UP FROM SIX HUNDRED SEVENTY ONE THE PRIOR YEAR AND THE SECOND HIGHEST EVER REWARDS DEPEND ON HOW VALUABLE THE I. R. S. CONSIDERS THE TIP TO BE ALL REWARDS OF COURSE ARE FULLY TAXABLE TO GET ANY REWARD THE TIPSTER MUST PROVIDE SPECIFIC DETAILED DATA NOT JUST SUSPICIONS SINCE THE LATE NINETEEN SIXTIES THE I. R. S. HAS PAID REWARDS ON ONLY EIGHT POINT FOUR PERCENT OF THE ONE HUNDRED SEVENTY SEVEN THOUSAND TWO HUNDRED NINETY EIGHT CLAIMS IT RECEIVED THE AVERAGE REWARD ONE THOUSAND SEVEN HUNDRED SEVENTY TWO DOLLARS WHILE CRITICS SAY THE PROGRAM SMACKS OF BIG BROTHERISM THE I. R. S. SAYS SNITCHES OFTEN PROVIDE VALUABLE INFORMATION THANKS TO TIPSTERS THE I. R. S. SAYS IT COLLECTED ONE HUNDRED SEVENTY TWO POINT ONE MILLION DOLLARS IN EXTRA TAXES LAST YEAR MORE THAN DOUBLE NINETEEN NINETY TWO'S TOTAL IS THIS PROGRESS BACK IN NINETEEN THIRTEEN THE FIRST TAX GUIDE ISSUED BY C. C. H. INCORPORATED A BIG TAX PUBLISHER CONSISTED OF ONE FOUR HUNDRED PAGE VOLUME TODAY C. C. H.'S STANDARD FEDERAL TAX REPORTER TOTALS ABOUT THIRTY SIX THOUSAND PAGES IN TWENTY TWO VOLUMES JUST SINCE NINETEEN EIGHTY SIX C. C. H. HAS COUNTED ABOUT FIVE THOUSAND TAX LAW CHANGES CREDIBILITY GAP THE TREASURY SAYS ONLY TWO PERCENT OF TAXPAYERS WILL BE HIT BY THE NEW LAW'S HIGHER RATES BUT SEVENTY FIVE PERCENT OF INVESTORS SURVEYED BY FIDELITY INVESTMENTS AND YANKELOVICH PARTNERS SAID THEY THINK THEY WILL PAY MORE AVERAGE HOUSEHOLD INCOME IN THAT SURVEY SIXTY FIVE THOUSAND DOLLARS THE JUSTICE DEPARTMENT MAY ARGUE BEFORE THE SUPREME COURT FOR CALIFORNIA IN A BATTLE OVER STATE TAXES OF MULTINATIONAL COMPANIES BUT CALIFORNIA WANTS TO SEE THE DEPARTMENT'S BRIEF EXPECTED BY NEXT WEEK JOB HOPPERS DON'T FORGET TO CALCULATE THE IMPACT OF STATE AND LOCAL INCOME TAXES IN SOME CASES STATE AND LOCAL INCOME TAXES CAN PLAY A BIG ROLE IN HELPING TO DECIDE WHETHER IT PAYS TO ACCEPT A NEW JOB OUT OF TOWN SAYS ROBERT GARNER OF ERNST AND YOUNG SOMEONE MOVING FROM A STATE WITH NO INCOME TAX SUCH AS FLORIDA OR TEXAS TO A HIGH TAX AREA SUCH AS NEW YORK OR WASHINGTON MIGHT DISCOVER A PAY INCREASE TURNS INTO A PAY CUT AFTER STATE AND LOCAL TAXES BUT A PAY CUT MAY BECOME AN INCREASE FOR SOMEONE MOVING TO A LOW TAX STATE CONSIDER A COUPLE WITH TWO CHILDREN AND TYPICAL ITEMIZED DEDUCTIONS IF THE COUPLE EARNED ONE HUNDRED THOUSAND DOLLARS AND MOVED TO FLORIDA FROM NEW YORK CITY LAST YEAR THEIR TOTAL INCOME TAX BILL WOULD BE ABOUT SIX THOUSAND FIVE HUNDRED DOLLARS LESS GARNER SAYS MOVING TO ARIZONA WOULD CUT THEIR TAX BILL MORE THAN THREE THOUSAND EIGHT HUNDRED DOLLARS IF THE COUPLE EARNED FIFTY THOUSAND DOLLARS AND MOVED TO FLORIDA OR TEXAS THEIR TAX BILL WOULD BE ABOUT THREE THOUSAND DOLLARS LESS THESE FIGURES REFLECT FEDERAL DEDUCTIBILITY OF STATE AND LOCAL TAXES DIFFERENCES IN PROPERTY SALES AND OTHER LOCAL TAXES ALSO MAY CHANGE THE BOTTOM LINE SIGNIFICANTLY GARNER ADDS BRIEFS BREAKING THE LANGUAGE BARRIER NOW THAT THE I. R. S. IS PROVIDING A SPANISH LANGUAGE FORM TEN FORTY A TO SOME REGIONS TAX LAWYER CONRAD TEITELL ASKS CAN I. R. S. FORMS WRITTEN IN ENGLISH BE FAR OFF NO ARGUMENT HERE QUOTE CONGRESS'S DECISIONS WITH RESPECT TO TAX POLICY DO NOT ALWAYS FIT A NEAT AND LOGICAL PATTERN QUOTE U. S. APPEALS COURT JUDGE STEPHEN REINHARDT WROTE IN A RECENT CASE SOMETIMES THEY ARE EVEN INFLUENCED BY LESS THAN OBJECTIVE FORCES SLOAN'S SUPERMARKETS INCORPORATED SAID INVESTORS GARY S. FELDSTEIN AND BARBARA J. FELDSTEIN ACQUIRED FIVE POINT SEVEN PERCENT OF THE COMPANY'S COMMON STOCK THE THIRD SUCH STOCK PURCHASE BY AN INVESTOR GROUP SINCE OCTOBER SLOAN'S SAID IN NEW YORK THAT A THIRTEEN D. FILING BY THE INVESTORS SAID THEY HAD PURCHASED ONE HUNDRED THIRTY FIVE THOUSAND EIGHT HUNDRED SHARES IN OCTOBER A GROUP COMPRISING REGAN PARTNERS LIMITED PARTNERSHIP AND ATHENA PARTNERS LIMITED PARTNERSHIP REPORTED ACQUIRING ONE HUNDRED TWENTY TWO THOUSAND FOUR HUNDRED SHARES OR A FIVE POINT ONE PERCENT STAKE IN NOVEMBER RMED INTERNATIONAL INCORPORATED PURCHASED TWO HUNDRED TWENTY FIVE THOUSAND ONE HUNDRED SHARES OR A NINE POINT FOUR PERCENT STAKE SLOAN'S CURRENTLY HAS TWO POINT FOUR MILLION SHARES OUTSTANDING A SLOAN'S SPOKESMAN SAID THE INVESTORS AREN'T RELATED AND THAT THE COMPANY QUOTE WELCOMES THE INTEREST QUOTE NEOPROBE CORPORATION SAID IT REACHED A MEMORANDUM OF UNDERSTANDING WITH PRIVATE ROTEM INDUSTRIES LIMITED TO FORM A NEW UNIT TO BE CALLED NEOPROBE ISRAEL WHICH WILL BUILD AND OPERATE A FACILITY IN ISRAEL FOR NEOPROBE'S CANCER TARGETING PRODUCTS NEOPROBE BASED IN COLUMBUS OHIO SAID IT WILL INVEST ABOUT ONE MILLION DOLLARS IN THE VENTURE THE COMPANY ALSO SAID THE MEMORANDUM IS CONTINGENT UPON GUARANTEES OF UP TO THREE MILLION DOLLARS FROM THE ISRAELI GOVERNMENT FOR FUNDING THE CONTRACT FOR THE FACILITY AND CLINICAL TESTING OF PRODUCTS NEOPROBE SAID IT WILL OWN NINETY FIVE PERCENT OF THE CAPITAL STOCK OF THE NEW UNIT AND ROTEM WITH THE REMAINDER WILL MANAGE THE FACILITY NEOPROBE SAID IT EXPECTS FINAL AGREEMENTS EARLY IN THE SECOND QUARTER NEOPROBE SAID ROTEM A PRIVATE ARM OF THE ISRAELI ATOMIC ENERGY COMMISSION MANUFACTURES RADIOISOTOPES AND OTHER NUCLEAR MEDICAL PRODUCTS RETAILER PERFUMANIA INCORPORATED AND REVLON CONSUMER PRODUCTS CORPORATION ENDED MERGER DISCUSSIONS AND SAID THEY ARE NOW QUOTE EXPLORING POSSIBLE APPROACHES QUOTE FOR REVLON TO BUY PERFUMANIA'S RETAIL STORES REVLON AND PERFUMANIA SAID THAT REVLON'S ONE HUNDRED THIRTY SEVEN STORE PRESTIGE FRAGRANCE AND COSMETICS INCORPORATED OUTLET IS HOLDING TALKS TO ACQUIRE MIAMI BASED PERFUMANIA'S ONE HUNDRED THIRTY NINE DISCOUNT STORES AND INVENTORY PERFUMANIA CHAIRMAN ILLA LEKACH SAID THE RETAIL DIVISION HAD ANNUAL SALES OF FIFTY SIX MILLION DOLLARS WHILE PERFUMANIA'S WHOLESALE DIVISION HAD ANNUAL SALES OF THIRTY SIX MILLION DOLLARS THE COMPANIES HAD SIGNED A NONBINDING LETTER OF INTENT TO MERGE REVLON'S PRESTIGE FRAGRANCE WITH PERFUMANIA IN EXCHANGE FOR PERFUMANIA STOCK VALUED AT THIRTY FOUR POINT NINE MILLION DOLLARS WHICH WOULD HAVE GIVEN REVLON A FIFTY POINT FIVE PERCENT CONTROLLING INTEREST IN PERFUMANIA THE AGREEMENT ENDED BECAUSE MR. LEKACH SAID BOTH PARTIES WEREN'T HAPPY WITH THE MERGER WHAT REVLON REALLY WANTED WAS THE RETAIL DIVISION A REVLON SPOKESMAN DECLINED TO ELABORATE NEW YORK BASED REVLON CONSUMER PRODUCTS IS OWNED BY REVLON INCORPORATED WHICH IS CONTROLLED BY INVESTOR RONALD PERELMAN SUNWARD TECHNOLOGIES INCORPORATED SAN DIEGO EXPECTS TO REPORT NET INCOME OF MORE THAN TWO POINT FIVE MILLION DOLLARS OR ABOUT THIRTY CENTS A SHARE ON SALES OF AROUND THIRTY TWO MILLION DOLLARS FOR ITS FISCAL SECOND QUARTER ENDED DECEMBER TWENTY SIXTH CHAIRMAN AND CHIEF EXECUTIVE GREG REYES SAID THE EARNINGS WHICH TAKE INTO ACCOUNT A ONE FOR FIVE REVERSE SPLIT OF ITS COMMON STOCK EFFECTIVE THIS PAST MONDAY MARK A REBOUND FROM THE COMPANY'S FIRST QUARTER ENDED SEPTEMBER TWENTY SIXTH IN THAT PERIOD THE COMPANY POSTED A LOSS OF ONE POINT NINE MILLION DOLLARS OR FIVE CENTS A SHARE ON SALES OF SIXTEEN POINT FOUR MILLION DOLLARS IN THE YEAR EARLIER SECOND QUARTER SUNWARD HAD NET INCOME OF THREE POINT SIX MILLION DOLLARS OR EIGHT CENTS A SHARE ON SALES OF THIRTY TWO POINT ONE MILLION DOLLARS THE COMPANY WILL REPORT EARNINGS FOR THE RECENT SECOND QUARTER TOMORROW SUNWARD HAD SUFFERED FROM POOR MARKET CONDITIONS BUT RECOVERED BY OFFERING A HIGHER CAPACITY DISK DRIVE MAGNETIC RECORDING HEAD THAT ITS CUSTOMERS WERE DEMANDING ON THE NASDAQ STOCK MARKET SUNWARD SHARES CLOSED AT TEN POINT ONE TWO FIVE DOLLARS DOWN EIGHTY SEVEN POINT FIVE CENTS OR EIGHT PERCENT AMSCO INTERNATIONAL INCORPORATED SAID IT DOESN'T EXPECT EARNINGS FOR THE FOURTH QUARTER ENDED JANUARY SECOND MET ANALYSTS' PROJECTIONS BECAUSE SALES FELL AN ESTIMATED TEN PERCENT ACCORDING TO FIRST CALL CORPORATION AN AVERAGE OF FIVE ANALYSTS' ESTIMATES SET AMSCO'S FOURTH QUARTER EARNINGS AT THIRTY TWO CENTS A SHARE WITH A RANGE OF BETWEEN TWENTY FIVE CENTS TO THIRTY FOUR CENTS A SHARE IN THE YEAR EARLIER FOURTH QUARTER AMSCO HAD NET INCOME OF FIFTEEN POINT THREE MILLION DOLLARS OR FORTY SEVEN CENTS A SHARE ON REVENUE OF ONE HUNDRED SIXTY THREE POINT NINE MILLION DOLLARS FOR THE FISCAL YEAR ENDED JANUARY THIRD NINETEEN NINETY THREE AMSCO EARNED ELEVEN POINT NINE MILLION DOLLARS OR THIRTY SEVEN CENTS A SHARE ON SALES OF FOUR HUNDRED NINETY EIGHT POINT TWO MILLION DOLLARS YEAR END NET INCLUDED AN ACCOUNTING ADJUSTMENT FOR THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE ON PRIOR PERIODS AND A GAIN FROM SETTLEMENT OF LITIGATION OVER A PATENT PITTSBURGH BASED AMSCO INTERNATIONAL WHICH MAKES INFECTION CONTROL DECONTAMINATION AND SURGICAL PRODUCTS AND SERVICES FOR THE HEALTH CARE SCIENTIFIC AND INDUSTRIAL MARKETS SAID IT PLANS TO ANNOUNCE RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR ON FEBRUARY NINTH THE COMPANY SAID FOURTH QUARTER SALES WERE ESTIMATED TO BE ONE HUNDRED FORTY SEVEN POINT SIX MILLION DOLLARS DOWN TEN PERCENT FROM ONE HUNDRED SIXTY THREE POINT NINE MILLION DOLLARS THE YEAR EARLIER SEQUENT COMPUTER SYSTEMS INCORPORATED SAID IT EXPECTS TO LAY OFF FIVE PERCENT OF ITS WORK FORCE AND TAKE A FOURTH QUARTER CHARGE OF FIFTEEN MILLION DOLLARS TO TWENTY MILLION DOLLARS AS PART OF A RESTRUCTURING PLAN THE COMPUTER MAKER SAID THAT AS PART OF ITS FORMATION OF TWO NEW DIVISIONS IT HAS BEGUN THIS WEEK A LAYOFF THAT WILL EVENTUALLY COST THE JOBS OF ABOUT EIGHTY FIVE OF ITS ONE THOUSAND SIX HUNDRED NINETY ONE WORKERS BEFORE THE CHARGE SEQUENT SAID THE COMPANY EXPECTS TO REPORT NET INCOME FOR THE QUARTER OF SIX POINT THREE MILLION DOLLARS TO EIGHT MILLION DOLLARS OR TWENTY CENTS TO TWENTY FIVE CENTS A SHARE SEQUENT BASED IN BEAVERTON OREGON SAID REVENUE FOR THE QUARTER WILL BE ABOUT ONE HUNDRED FOUR MILLION DOLLARS A RECORD IN THE YEAR EARLIER QUARTER SEQUENT HAD NET OF SIX POINT THREE MILLION DOLLARS OR TWENTY THREE CENTS A SHARE ON REVENUE OF EIGHTY EIGHT POINT SEVEN MILLION DOLLARS OPPORTUNITIES TO CORRECT A LIFE GONE ASTRAY DON'T COME BY VERY OFTEN ESPECIALLY IN THE INNER CITY A FEW WEEKS AGO A LOCAL MINISTER APPROACHED ME ASKING IF MY COMPANY COULD HIRE TEN GANG MEMBERS WHO WANTED TO ESCAPE THE VIOLENCE OF THE STREETS AND LEARN A WORTHWHILE TRADE THEY WERE TIRED OF LIVING WITH BULL'S EYES ON THEIR BACKS THEY NEEDED JOBS I HAD NONE TO OFFER THE CONSTRUCTION COMPANY MY HUSBAND AND I CREATED TO HELP REBUILD SEATTLE AND TACOMA AND PROVIDE JOBS TO THE VERY KIDS I HAD JUST TURNED AWAY IS NOW DORMANT WHAT IS EVEN MORE DISHEARTENING HOWEVER IS THAT OUR COMPANY DID NOT WITHDRAW FROM THE MARKET BECAUSE OF MISMANAGEMENT OR A GENERAL DOWNTURN IN THE CONSTRUCTION INDUSTRY LIKE MANY MINORITY OWNED CONSTRUCTION FIRMS BRAZIER CONSTRUCTION NO LONGER OFFERS JOB OPPORTUNITIES BECAUSE OF ARTIFICIALLY HIGH LABOR COSTS THAT RESULT FROM RACIST FEDERAL LEGISLATION ENACTED MORE THAN SIXTY YEARS AGO THIS LEGISLATION IS FULFILLING ITS ORIGINAL EXPLICIT INTENT TO KEEP BLACK FIRMS FROM COMPETING FOR AND WINNING FEDERAL CONSTRUCTION PROJECTS THE DAVIS BACON ACT WAS PASSED IN NINETEEN THIRTY ONE WHEN MIGRANT BLACK WORKERS COMPETED WITH WHITE UNION LABOR FOR SCARCE JOBS AT THE URGING OF UNIONS LIKE THE AMERICAN FEDERATION OF LABOR CONGRESS NEUTRALIZED BLACK LABOR COMPETITION BY REQUIRING THAT QUOTE PREVAILING WAGES QUOTE BE PAID ON ALL FEDERAL PROJECTS IN PRACTICE PREVAILING WAGES MEANT UNION WAGES WELL CAPITALIZED COMPANIES COULD AFFORD UNION WAGES BUT THEIR UNIONS USUALLY KEPT BLACKS OUT BLACK BUSINESSES WHICH WERE OFTEN LESS WELL CAPITALIZED COULD NOT AFFORD TO PAY THOSE PROHIBITIVE RATES ON LABOR THE LAW ALSO IMPOSED RIGID UNION BASED JOB CLASSIFICATIONS WHICH ALONG WITH RESTRICTIVE APPRENTICESHIP REGULATIONS SHARPLY LIMIT EMPLOYERS' ABILITY TO HIRE OR TRAIN UNSKILLED WORKERS TODAY CONSTRUCTION UNIONS STILL TRY TO KEEP THE BLACK LABOR POOL OUT AND MANY BLACK OWNED FIRMS ARE STILL SMALL AND NONUNION TO SEEK DAVIS BACON CONTRACTS USUALLY ANY CONTRACT INVOLVING THE PUBLIC SECTOR IN ANY WAY MINORITY FIRMS MUST NOT ONLY PAY INFLATED WAGES AND ADOPT INEFFICIENT WORK PRACTICES BUT MUST EXPOSE THEMSELVES TO HUGE COMPLIANCE COSTS AND THREATS OF LITIGATION AND UNION HARASSMENT FEW MINORITY OWNED FIRMS WIN DAVIS BACON CONTRACTS AND MANY OTHERS LIKE MINE GIVE UP TRYING THE WIDENING NET OF FEDERAL GOVERNMENT MEANS THAT IN PRACTICE FEW CONTRACTS AVAILABLE TO MY BUSINESS FOR EXAMPLE ARE OUTSIDE THE POWER OF THE ACT DAVIS BACON REMAINS A PRINCIPAL REASON WHY BLACKS ARE UNEMPLOYED AT TWICE THE RATE OF WHITES IN THE CONSTRUCTION TRADE AMERICANS OF AFRICAN DESCENT ENTERED THIS CENTURY WITH THE FOUNDATIONS OF OUR SOCIETY OUR PERSONAL INTEGRITY OUR MARRIAGES OUR FAMILIES OUR BUSINESSES OUR CHURCHES OUR SCHOOLS OUR COMMUNITIES INTACT BUT THROUGH REGULATIONS LIKE DAVIS BACON WHICH STIFLE ECONOMIC OPPORTUNITY MUCH OF THIS SOCIAL FABRIC UNRAVELED IN THE MINORITY COMMUNITY A LACK OF CONSTRUCTION JOBS SHORT CIRCUITED TWO PRINCIPLES ESSENTIAL FOR BLACKS THE FIRST SAYS WATER IS WET FIRE BURNS AND PEOPLE HIRE THEIR OWN WITHOUT AFRICAN AMERICAN BUILDERS OVERSEEING CONSTRUCTION INNERCITY RESIDENTS WOULD HAVE LESS CHANCE TO BE HIRED THE SECOND PRINCIPLE OFFERED BY MALCOLM X. HOLDS A DOLLAR MUST CHANGE HANDS IN A COMMUNITY SIX TIMES BEFORE IT LEAVES THE COMMUNITY OR THE COMMUNITY DIES UNLESS CITY RESIDENTS ARE EMPLOYED THE ABILITY TO PASS A DOLLAR FROM ONE COMMUNITY MEMBER TO ANOTHER DIMINISHES OUR NATION AS A WHOLE ALSO PAYS A STEEP PRICE FOR DAVIS BACON WHICH ACCOUNTS FOR TWENTY PERCENT OF THE TWO HUNDRED THIRTY TWO BILLION DOLLAR CONSTRUCTION BUSINESS NATIONALLY A CONGRESSIONAL BUDGET OFFICE STUDY FOUND THE ACT COSTS TAXPAYERS ONE BILLION DOLLARS A YEAR IN UNNECESSARY LABOR COSTS AND ONE HUNDRED MILLION DOLLARS FOR REGULATION IT'S TIME TO END DAVIS BACON THAT IS WHY MY COMPANY ALONG WITH FOUR OTHER BLACK OWNED CONSTRUCTION FIRMS HAS JOINED OTHERS AS PLAINTIFFS IN A LAWSUIT FILED BY A WASHINGTON D. C. GROUP THE INSTITUTE FOR JUSTICE CHALLENGING THE CONSTITUTIONALITY OF THE ACT MS. BRAZIER AND HER HUSBAND MARTIN ARE CO OWNERS OF SEATTLE BASED BRAZIER CONSTRUCTION COMPANY PACKARD BELL ELECTRONICS INCORPORATED SAID IT IS MOVING ITS SERVICE AND SUPPORT OPERATIONS FROM CALIFORNIA TO A SALT LAKE CITY SUBURB THE CLOSELY HELD PERSONAL COMPUTER MAKER BASED IN CHATSWORTH CALIFORNIA LEASED A THIRTY TWO THOUSAND SQUARE FOOT FACILITY IN MAGNA UTAH AND OFFERED TO RELOCATE MOST OF ITS FOUR HUNDRED TWENTY SERVICE AND SUPPORT EMPLOYEES PACKARD BELL WHICH REPORTED NINETEEN NINETY THREE REVENUE OF ABOUT ONE POINT TWO FIVE BILLION DOLLARS SAID IT EXPECTS TO EMPLOY ABOUT SIX HUNDRED SERVICE TECHNICIANS IN UTAH BY THE END OF NINETEEN NINETY FOUR THE COMPANY'S U. S. SERVICE AND SUPPORT DEPARTMENT HANDLES ABOUT SIXTY THOUSAND CALLS A WEEK FROM CUSTOMERS WITH QUESTIONS ABOUT PACKARD BELL COMPUTERS PACKARD BELL'S DECISION TO RELOCATE THE OPERATIONS TO UTAH FOLLOWS A FOUR MONTH SEARCH THAT ALSO CONSIDERED SITES IN OREGON ARIZONA NORTH CAROLINA TEXAS COLORADO AND WASHINGTON CIBA CANADA MISSISSAUGA ONTARIO INTENDS TO SEEK A BUYER FOR ITS FIVE YEAR OLD TRICHOGRAMMA BIOLOGICAL CONTROL BUSINESS UNIT CIBA SAID THE UNIT IS NOT PROVIDING SUFFICIENT RETURN ON ITS INVESTMENT TO JUSTIFY FURTHER FUNDING CIBA INVESTED IN THE PROJECT IN NINETEEN EIGHTY NINE TO MASS PRODUCE TRICHOGRAMMA TINY PARASITIC WASPS THAT NATURALLY CONTROL SPRUCE BUDWORM INFESTATION IN CANADIAN FORESTS THE WASPS ARE WIDELY USED IN AGRICULTURAL PEST CONTROL THE PROJECT IS A PARTNERSHIP WITH THE ONTARIO TECHNOLOGY FUND THE ONTARIO MINISTRY OF THE NATURAL RESOURCES AND THE UNIVERSITIES OF GUELPH AND TORONTO THE GROUP ALTOGETHER HAS INVESTED SIX MILLION DOLLARS IN THE PROJECT WHICH INCLUDES A PILOT PLANT OPENED IN GUELPH ONTARIO IN NINETEEN NINETY TWO CIBA CANADA A UNIT OF CIBA GEIGY A. G. BASEL SWITZERLAND SAID IT HOPES TO SELL THE PROJECT BY THE END OF APRIL DURAMED PHARMACEUTICALS INCORPORATED CINCINNATI SAID IT EXPECTS FOURTH QUARTER RESULTS TO BE QUOTE GREATER THAN ANY PREVIOUS QUARTER TO QUARTER IMPROVEMENTS REPORTED FOR NINETEEN NINETY THREE QUOTE IN THE NINETEEN NINETY TWO FOURTH QUARTER DURAMED REPORTED A NET LOSS OF FOUR POINT ONE MILLION DOLLARS OR SIXTY THREE CENTS A SHARE ON SALES OF FIVE POINT FOUR MILLION DOLLARS IN A NEWS RELEASE DURAMED SAID IT EXPECTS ITS YEAR END AUDIT TO BE COMPLETED IN MARCH AND FINAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR TO BE RELEASED AT THAT TIME DURAMED MANUFACTURES AND SELLS GENERIC DRUG PRODUCTS CANADIAN PACIFIC FOREST PRODUCTS LIMITED SAID IT AGREED TO SELL TWO HUNDRED TWENTY SIX POINT FIVE MILLION CANADIAN DOLLARS ONE HUNDRED SEVENTY ONE POINT NINE MILLION U. S. DOLLARS OF UNITS CONSISTING OF COMMON SHARES AND WARRANTS TO A GROUP OF CANADIAN UNDERWRITERS THE SIX HUNDRED THOUSAND UNITS INCLUDE SIX MILLION COMMON SHARES PRICED AT EIGHTEEN CANADIAN DOLLARS AND SEVENTY FIVE CENTS EACH AND ONE HUNDRED FOURTEEN MILLION CANADIAN DOLLARS OF SEVEN POINT FIVE PERCENT CONVERTIBLE UNSECURED DEBENTURES THE COMPANY'S SHARES HAD BEEN TRADING AT TWENTY CANADIAN DOLLARS AND TWENTY FIVE CENTS A SHARE IN TORONTO BEFORE THE STOCK WAS HALTED FOR THE ANNOUNCEMENT NEAR THE END OF YESTERDAY'S SESSION THE MONTREAL FOREST PRODUCT COMPANY SAID ABOUT SIXTY MILLION CANADIAN DOLLARS OF THE NET PROCEEDS WILL BE USED TO REPAY SUMS DRAWN UNDER CREDIT FACILITIES AND THE BALANCE WILL BE USED FOR GENERAL OPERATIONS AND CAPITAL EXPENDITURES THE SALE IS EXPECTED TO CLOSE FEBRUARY EIGHTH THE DEBENTURES ARE CONVERTIBLE AT THE HOLDER'S OPTION UNTIL THE MATURITY DATE FEBRUARY EIGHTH TWO THOUSAND FOUR AT TWENTY TWO CANADIAN DOLLARS A COMMON SHARE FROM FEBRUARY EIGHTH NINETEEN NINETY NINE THE DEBENTURES WILL BE REDEEMABLE AT PAR AT THE COMPANY'S OPTION STANDARD AND POOR'S CORPORATION SAID IT WILL REMOVE MERRY GO ROUND ENTERPRISES INCORPORATED FROM THE STANDARD AND POOR'S MIDCAP FOUR HUNDRED INDEX AFTER THE CLOSE OF TRADING TODAY IT WILL BE REPLACED BY E. M. C. CORPORATION A HOPKINTON MASSACHUSETTS MAKER OF COMPUTER SYSTEM ENHANCEMENT PRODUCTS MERRY GO ROUND A CLOTHING RETAILER BASED IN JOPPA MARYLAND FILED YESTERDAY FOR PROTECTION FROM CREDITORS UNDER CHAPTER ELEVEN OF THE U. S. BANKRUPTCY CODE SEITEL INCORPORATED SAID ITS DDD ENERGY INCORPORATED UNIT COMPLETED DRILLING TWO EXPLORATORY WELLS IN THE VAN WEST FIELD NEAR TYLER TEXAS THE HOUSTON COMPANY SAID THE PALMER METCALF ONE FLOWED FROM TWO DIFFERENT SECTIONS OF THE RODESSA FORMATION FLOW FROM THE LOWER SECTION WAS ONE HUNDRED FIFTY BARRELS OF OIL A DAY ON AN EIGHT SIXTY FOURTHS INCH CHOKE FLOW FROM THE UPPER SECTION WAS ONE THOUSAND SIX HUNDRED THIRTY ONE THOUSAND CUBIC FEET OF GAS A DAY ON A TWELVE SIXTY FOURTHS INCH CHOKE SEITEL SAID THE SECOND WELL FIFE ONE FLOWED FROM THE GLEN ROSE FORMATION AT A RATE OF ONE HUNDRED SEVENTY SIX BARRELS OF OIL A DAY ON A TWENTY SIXTY FOURTHS INCH CHOKE DDD ENERGY AND UNION OIL COMPANY OF CALIFORNIA A UNIT OF UNOCAL CORPORATION EACH OWN A TWENTY FIVE PERCENT WORKING INTEREST IN THE VAN WEST FIELD AS DOES CRAWFORD AND CAMERON GROUP WHICH OPERATES AND MANAGES THE JOINT VENTURE THE REST IS SPREAD AMONG CLOSELY HELD COMPANIES AND INDIVIDUALS OGDEN CORPORATION'S OGDEN ENVIRONMENTAL AND ENERGY SERVICES COMPANY UNIT SAID IT WAS ONE OF FOUR CONTRACTORS SELECTED TO HELP CLEAN UP HAZARDOUS WASTE PROBLEMS AT A U. S. AIR FORCE BASE THE PROJECT KNOWN AS THE INSTALLATION RESTORATION PROGRAM AT KELLY AIR FORCE BASE IN TEXAS WILL ALLOW THE FOUR CONTRACTORS TO BID FOR WORK VALUED AT ONE HUNDRED NINETY FIVE MILLION DOLLARS OVER FIVE YEARS THE WORK INCLUDES FINDING AND REMEDYING CONTAMINATION PROBLEMS CAUSED BY PAST WASTE DISPOSAL PRACTICES IN LANDFILLS OIL PITS AND OTHER SITES THE LEADING INDICATOR OF THE SEMICONDUCTOR INDUSTRY INCHED UP IN DECEMBER BOLSTERING MANY INDUSTRY EXPERTS' VIEW THAT THE CHIP MARKET WILL SEE MODERATE GROWTH THIS YEAR AFTER A STRONG NINETEEN NINETY THREE THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID ITS BOOK TO BILL RATIO FOR THE NORTH AMERICAN MARKET IN DECEMBER STOOD AT ONE POINT OH FOUR TO ONE UP FROM ZERO POINT NINE NINE TO ONE IN NOVEMBER BUT DOWN FROM THE YEAR'S HIGH OF ONE POINT TWO TO ONE IN JANUARY THE RATE OF ONE POINT OH FOUR INDICATES THAT FOR EVERY ONE HUNDRED DOLLARS IN CHIPS SHIPPED THE INDUSTRY RECEIVED ONE HUNDRED FOUR DOLLARS IN ORDERS A RATE OF MORE THAN ONE INDICATES A GROWING MARKET COMSTOCK RESOURCES INCORPORATED SAID IT SOLD SIX HUNDRED THOUSAND SHARES OF CONVERTIBLE PREFERRED STOCK FOR SIX MILLION DOLLARS THE STOCK PURCHASED BY INVESTMENT FUNDS MANAGED BY TRUST COMPANY OF THE WEST RECEIVES A QUARTERLY DIVIDEND OF TWENTY TWO POINT FIVE CENTS A SHARE AND IS CONVERTIBLE INTO THE ENERGY COMPANY'S COMMON STOCK AT FOUR DOLLARS A SHARE IN OVER THE COUNTER TRADING YESTERDAY COMSTOCK CLOSED AT THREE POINT EIGHT SEVEN FIVE DOLLARS OFF NINE POINT THREE SEVEN FIVE CENTS OR TWO POINT FOUR PERCENT ON VOLUME OF TWO HUNDRED SEVEN THOUSAND ONE HUNDRED SHARES PROCEEDS WILL BE USED FOR ACQUISITIONS COMSTOCK SAID IT ADDED THAT LIBERTY LIFE INSURANCE COMPANY CONVERTED ONE HUNDRED FIFTY THOUSAND SHARES OF CUMULATIVE PREFERRED STOCK INTO EIGHT HUNDRED FIFTY SEVEN THOUSAND ONE HUNDRED FORTY THREE SHARES OF COMMON STOCK OR SEVEN AND ONE HALF PERCENT OF ALL SHARES OUTSTANDING ITOCHU CORPORATION TOKYO ANNOUNCED THAT IT WILL LIQUIDATE ITS UNPROFITABLE ITOCHU FINANCE CORPORATION UNIT BY THE END OF MARCH AS A RESULT THE PARENT COMPANY ONE OF JAPAN'S SIX MAJOR TRADING COMPANIES EXPECTS TO REPORT AN EXTRAORDINARY LOSS OF ABOUT TWENTY EIGHT BILLION YEN TWO HUNDRED FORTY NINE POINT FIVE MILLION DOLLARS FOR THE YEAR ENDING MARCH THIRTY FIRST THAT INCLUDES THE NINE POINT EIGHT BILLION YEN LOSS FOR THE PARENT TIED TO THE SUBSIDIARY THAT WAS REALIZED IN THE FIRST HALF ENDED SEPTEMBER THIRTIETH ITOCHU SAID THE PARENT COMPANY HAS REVISED ITS NET INCOME OUTLOOK FOR THE CURRENT FISCAL YEAR DOWN TO AROUND TWO BILLION FROM THE SIX BILLION YEN FORECAST IN NOVEMBER NINETEEN NINETY THREE ITOCHU FINANCE AT THE END OF LAST AUGUST REPORTED CUMULATIVE LOSSES OF FIFTEEN POINT SIX BILLION YEN A FIGURE THREE POINT ONE BILLION YEN LARGER THAN THE UNIT'S CAPITALIZATION OF TWELVE POINT FIVE BILLION YEN THE PARENT COMPANY SAID WHAT WOULD BE THE BEST WAY TO CONVINCE RUSSIANS THAT THE U. S. IS DETERMINED TO THWART THEIR EFFORTS TO BUILD A SUCCESSFUL MARKET ECONOMY HOW ABOUT BY LIMITING THEIR EXPORTS IN THE FEW INDUSTRIES WHERE THEY CAN NOW EARN FOREIGN EXCHANGE AND SPECIFICALLY HOW ABOUT BY FORCING NEWLY PRIVATIZED ENTERPRISES TO REVERT TO THE COMMUNIST PRACTICE OF FIXED OUTPUT QUOTAS SUCH A U. S. BETRAYAL OF RUSSIAN ECONOMIC REFORM HAS ALREADY BEGUN AND COULD WIDEN EVEN AS PRESIDENT CLINTON SCOLDS THE EUROPEAN UNION FOR BLOCKING IMPORTS FROM FORMER COMMUNIST COUNTRIES AND JOURNEYS TO MOSCOW TO URGE THE RUSSIANS TO INTENSIFY THEIR MARKET ORIENTED REFORMS IN NINETEEN NINETY TWO THE BUSH ADMINISTRATION LEVIED ANTIDUMPING DUTIES ON IMPORTS OF URANIUM FROM RUSSIA AND OTHER PRODUCERS IN THE FORMER SOVIET UNION THESE DUTIES HAVE RECENTLY BEEN REPLACED BY QUOTE VOLUNTARY QUOTE EXPORT RESTRAINT AGREEMENTS OR VERS WHICH REQUIRE THE GOVERNMENTS OF EXPORTING COUNTRIES TO IMPOSE MAXIMUM EXPORT QUOTAS ON THEIR PRODUCERS THE U. S. ACTION FORCED RUSSIA TO REINSTATE QUANTITATIVE REGULATION OF ITS URANIUM PRODUCERS IT WAS BACK TO BUSINESS BY EDICT AFTER A FEW MONTHS OF TRYING TO ESTABLISH A MARKET THE ONLY DIFFERENCES ARE THAT THE NEW PRODUCTION QUOTAS ARE MAXIMUMS RATHER THAN MINIMUMS AND THAT THEY WERE IMPOSED BY THE U. S. RATHER THAN BY THE COMMUNIST PARTY SIMILAR PROTECTION COULD WELL FOLLOW IN ALUMINUM MANGANESE NICKEL POTASH AND OTHER PRIMARY PRODUCTS THE MOST IMMEDIATE CASE IS ALUMINUM WHERE THE U. S. INDUSTRY HAS THREATENED TO FILE AN ANTIDUMPING SUIT AGAINST RUSSIAN EXPORTS IF MULTILATERAL TALKS DON'T RESULT IN AN AGREEMENT BY PRODUCING COUNTRIES TO CUT WORLD OUTPUT SUCH AN AGREEMENT WOULD IN ESSENCE CREATE A GLOBAL CARTEL THAT WOULD CLEARLY VIOLATE U. S. ANTITRUST LAW PRESIDENT CLINTON AND HIS TEAM WILL TRY TO GET THE RUSSIANS TO ACCEPT ANOTHER VER EVEN BEFORE THE ALUMINUM INDUSTRY MAKES GOOD ON ITS THREAT ALUMINUM IS MUCH MORE IMPORTANT TO THE RUSSIANS THAN URANIUM IN THE FIRST NINE MONTHS OF NINETEEN NINETY THREE IT ACCOUNTED FOR ALMOST THIRTY PERCENT OF TOTAL RUSSIAN EXPORTS TO THE U. S. FEWER THAN FIVE THOUSAND JOBS COULD BE SAVED IN THE U. S. ALUMINUM INDUSTRY BY USING IMPORT RESTRICTIONS THE CONSUMER COST OF PRESERVING EACH JOB WOULD BE CLOSE TO FIVE HUNDRED THOUSAND DOLLARS A YEAR OUR DOWNSTREAM ALUMINUM USING INDUSTRIES LIKE AUTOS WOULD LOSE COMPETITIVENESS AS A RESULT OF PAYING MORE FOR THEIR IMPORTS EACH JOB SAVED IN THE ALUMINUM INDUSTRY IS ALMOST CERTAIN TO COST SEVERAL JOBS IN THE DOWNSTREAM INDUSTRIES THERE IS NO WAY TO CALCULATE THE GEOPOLITICAL COSTS OF SABOTAGING RUSSIA'S ATTEMPT TO BUILD A MARKET ECONOMY BUT MIGHT A VER BE PREFERABLE TO THE IMPOSITION OF ANTIDUMPING DUTIES WHICH COULD WELL OCCUR IF THE ALUMINUM INDUSTRY FILES ITS SUIT RUSSIA ISN'T DUMPING IN THE ORIGINAL AND ECONOMICALLY MEANINGFUL SENSE OF SELLING AT A PRICE BELOW WHAT IT CHARGES IN THE DOMESTIC MARKET NOR IS IT SELLING BELOW ITS OWN COSTS OF PRODUCTION THE BASIS FOR AN ALTERNATIVE CALCULATION THAT IS NOW USED FREQUENTLY IN ANTIDUMPING CASES EVEN AFTER ALLOWING FOR CONTINUED ENERGY SUBSIDIES IN RUSSIA AND FOR THE DEPLORABLE STATE OF ITS SAFETY STANDARDS RUSSIA IS A LOW COST PRODUCER THE ANTIDUMPING LAWS HOWEVER ARE NO LONGER CRAFTED TO PENALIZE TRUE DUMPING AND THEY WERE NEVER DESIGNED TO WEIGH GEOPOLITICAL FACTORS OR THE INTERESTS OF THE DOWNSTREAM INDUSTRIES AGAINST THOSE OF THE INDUSTRY FILING SUIT IT IS PARTICULARLY EASY TO WIN AN ANTIDUMPING CASE WHEN THE FOREIGN PRODUCERS ARE LOCATED IN A NONMARKET ECONOMY AS RUSSIA IS STILL CLASSIFIED SINCE THE CALCULATION OF WHAT THE FOREIGNER OUGHT TO BE CHARGING IN SUCH CASES IS AN ARTIFICIAL ESTIMATE BASED ON COSTS IN SOME THIRD COUNTRY IF SOME FORM OF PROTECTION IS INEVITABLE IT WOULD NEVERTHELESS BE LESS BAD COMING FROM A QUASI JUDICIAL PROCESS LIKE AN ANTIDUMPING ACTION THAN FROM A VER A DISCREDITED POLICY TOOL THAT THE U. S. AND MORE THAN ONE HUNDRED OTHER COUNTRIES HAVE JUST AGREED TO PHASE OUT AS PART OF THE URUGUAY ROUND PACKAGE OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE MOREOVER ANTIDUMPING DUTIES WOULDN'T REQUIRE THE RUSSIAN GOVERNMENT TO REIMPOSE QUOTAS ON RUSSIAN ENTERPRISES BUT THE BASIC POLICY ISSUE IS WHETHER THE U. S. REALLY SUPPORTS ECONOMIC REFORM IN RUSSIA IF SO WE SURELY WANT TO PROMOTE TRADE NOT AID THE U. S. ADMINISTRATION SHOULD BOTH REJECT THE VER AND DO ALL IT CAN TO WARD OFF THE ANTIDUMPING SUIT OUR GOVERNMENT HAS RIGHTLY CHASTISED WESTERN EUROPE FOR LIMITING EXPORTS OF AGRICULTURAL PRODUCTS STEEL AND TEXTILES FROM EASTERN EUROPE IT SHOULD ALSO CHASTISE WESTERN EUROPE FOR RESTRICTING ALUMINUM IMPORTS FROM RUSSIA RATHER THAN EMULATE ITS WORST PRACTICES THE ZHIRINOVSKY PHENOMENON IN RUSSIA STRONGLY SUGGESTS THAT WE SHOULD AVOID PROVIDING AN EASY TARGET FOR NATIONALIST AND XENOPHOBIC OUTBURSTS INSTEAD OF RAILING ABOUT I. M. F. IMPOSITION OF AUSTERITY IN RUSSIA WHERE HYPERINFLATION STILL THREATENS AND OPEN UNEMPLOYMENT REMAINS BELOW TWO PERCENT WE SHOULD AVOID CHOKING OFF EXPORTS OF THE ONLY RUSSIAN PRODUCTS THE WORLD WANTS TO BUY AND PUSHING THAT COUNTRY BACK TOWARD COMMAND ECONOMICS MR. BERGSTEN IS THE DIRECTOR OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS CANADIAN HOUSING STARTS ROSE ZERO POINT FIVE PERCENT IN DECEMBER TO A SEASONALLY ADJUSTED ANNUAL RATE OF ONE HUNDRED SEVENTY TWO THOUSAND ONE HUNDRED FROM A NOVEMBER RATE OF ONE HUNDRED SEVENTY ONE THOUSAND THREE HUNDRED CANADA MORTGAGE AND HOUSING CORPORATION A GOVERNMENT AGENCY SAID DECEMBER WAS THE FOURTH CONSECUTIVE MONTH TO SHOW A RISE IN HOUSING STARTS TARGET THERAPEUTICS INCORPORATED CITING BETTER THAN PREDICTED SALES SAID IT EXPECTS TO REPORT THAT FISCAL THIRD QUARTER EARNINGS EXCEEDED ANALYSTS' ESTIMATES FOR THE QUARTER ENDED DECEMBER THIRTY FIRST THE FREMONT CALIFORNIA MEDICAL DEVICE MAKER SAID IT EXPECTS TO REPORT NET INCOME OF TWENTY CENTS TO TWENTY THREE CENTS A SHARE COMPARED WITH ANALYSTS' PREDICTIONS OF THIRTEEN CENTS TO SEVENTEEN CENTS A SHARE THIRD QUARTER REVENUE WAS ABOUT NINE POINT THREE MILLION DOLLARS TARGET SAID FOR THE YEAR EARLIER QUARTER TARGET POSTED NET INCOME OF EIGHT HUNDRED NINETY SEVEN THOUSAND DOLLARS OR THIRTEEN CENTS A SHARE ON REVENUE OF SEVEN POINT THREE MILLION DOLLARS TARGET SAID SALES GROWTH IN THE QUARTER WAS STRONG ACROSS ITS PRODUCT LINES AND EXPENSE GROWTH WAS LOWER THAN EXPECTED IT SAID IT PLANS TO REPORT ITS EARNINGS ON OR ABOUT JANUARY TWENTY FIFTH PARALLEL PETROLEUM CORPORATION SAID ITS FIRST FUSSELMAN FORMATION DISCOVERY WELL THE HAMLIN SIXTEEN TO ONE TESTED AT A FLOW RATE OF FIVE HUNDRED SEVENTY SEVEN BARRELS OF OIL AND EIGHTY ONE THOUSAND CUBIC FEET OF NATURAL GAS A DAY ON A TWELVE SIXTY FOURTHS INCH CHOKE THE OIL AND NATURAL GAS COMPANY SAID THE WELL WHICH IS IN THE PERMIAN BASIN IN WEST TEXAS IS PRODUCING ONE HUNDRED SIXTY FIVE BARRELS OF OIL A DAY PLUS ASSOCIATED NATURAL GAS OF ABOUT TWENTY FIVE THOUSAND CUBIC FEET A DAY PARALLEL OWNS AN EIGHTY PERCENT WORKING INTEREST IN THE WELL PRIVATE INVESTORS AND CLOSELY HELD COMPANIES OWN THE REMAINING TWENTY PERCENT PRESIDENT CLINTON PLANS TO NOMINATE NEW YORK STATE POLICE SUPERINTENDENT THOMAS CONSTANTINE TO HEAD THE DRUG ENFORCEMENT ADMINISTRATION MR. CONSTANTINE FIFTY FIVE YEARS OLD HAS BEEN WITH THE STATE POLICE FOR MORE THAN THREE DECADES AND WAS APPOINTED SUPERINTENDENT IN NINETEEN EIGHTY SEVEN DURING THOSE YEARS HE WORKED WITH NOW FEDERAL BUREAU OF INVESTIGATION DIRECTOR LOUIS FREEH WHO WAS A FEDERAL JUDGE A FEDERAL PROSECUTOR AND AN F. B. I. AGENT IN NEW YORK CITY THE D. E. A. HAS ABOUT THREE THOUSAND FIVE HUNDRED AGENTS IN FIFTY THREE COUNTRIES IN OCTOBER ATTORNEY GENERAL JANET RENO REJECTED SUGGESTIONS TO MERGE THE D. E. A. AND THE F. B. I. INSTEAD SHE APPOINTED MR. FREEH DIRECTOR OF INVESTIGATIVE AGENCY POLICIES IN ADDITION TO HIS F. B. I. DUTIES THE NEW POSITION IS DESIGNED TO RESOLVE AND PREVENT TURF BATTLES AMONG THE FEDERAL LAW ENFORCEMENT AGENCIES WHILE MR. CONSTANTINE HAS BEEN APPLAUDED FOR HIS SUPERVISION OF THE STATE POLICE HIS TENURE ALSO HAS WITNESSED ONE OF THE MOST SERIOUS SCANDALS IN STATE POLICE HISTORY IN RECENT MONTHS THREE TROOPERS HAVE ADMITTED FALSIFYING FINGERPRINT RECORDS MOODY'S INVESTOR SERVICE INCORPORATED PLACED UNDER REVIEW FOR POSSIBLE UPGRADE THE DEBT OF TWO VIRGINIA BANKS THAT HAD ASSET QUALITY PROBLEMS MOODY'S IS REVIEWING B. A A TWO SUBORDINATED DEBT AND A TWO RATED LONG TERM DEPOSITS OF SIGNET BANKING CORPORATION AND CRESTAR FINANCIAL CORPORATION APPROXIMATELY TWO HUNDRED FIFTY MILLION DOLLARS IN SIGNET'S DEBT IS AFFECTED WHILE ONE HUNDRED SEVENTY FIVE MILLION DOLLARS OF CRESTAR'S DEBT IS AFFECTED THE BANKS BOTH BASED IN RICHMOND WERE ACTIVE IN COMMERCIAL REAL ESTATE LENDING IN THE WASHINGTON D. C. AREA WHEN THE MARKET WAS HARD HIT IN NINETEEN NINETY AND NINETEEN NINETY ONE THE BANKS BOTH HAD ASSET QUALITY PROBLEMS SAID DEBORAH KINZER ASSISTANT VICE PRESIDENT AT MOODY'S QUOTE WE HAVE HAD A POSITIVE VIEW REGARDING BOTH COMPANIES FOR A WHILE QUOTE SAID MS. KINZER WHO ADDED THAT BOTH BANKS' RATINGS WERE UPGRADED IN LATE NINETEEN NINETY TWO AND EARLY NINETEEN NINETY THREE MOODY'S SAID THE BANKS' PRIME TWO RATING FOR COMMERCIAL PAPER AND PRIME ONE RATINGS FOR SHORT TERM DEPOSITS AREN'T AFFECTED BY THE REVIEW AMERICA WEST AIRLINES SAID ITS TRAFFIC IN DECEMBER ROSE SIX POINT FOUR PERCENT TO NINE HUNDRED FIFTY NINE POINT SEVEN MILLION REVENUE PASSENGER MILES FROM NINE HUNDRED TWO POINT TWO MILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED ROSE TO SIXTY FOUR POINT TWO PERCENT FROM SIXTY POINT SIX PERCENT FOR THE YEAR TRAFFIC FELL FOUR POINT EIGHT PERCENT TO ELEVEN POINT TWO BILLION REVENUE PASSENGER MILES FROM ELEVEN POINT EIGHT BILLION A YEAR EARLIER LOAD FACTOR ROSE TO SIXTY FIVE POINT THREE PERCENT FROM SIXTY ONE POINT ONE PERCENT CORNING INCORPORATED SAID IT IS GEARING UP A BROADER PREPRODUCTION PROGRAM FOR ITS ELECTRICALLY HEATED CATALYTIC CONVERTERS FOR THAT PURPOSE THE COMPANY DEDICATED A TEN THOUSAND SQUARE FOOT FACILITY IN AN EXISTING BUILDING IN CORNING N. Y. EXPECTING TO PRODUCE SAMPLES FOR TESTING ON AUTOMOBILE MODELS IN NINETEEN NINETY FOUR THOUGH THE COMPANY WOULDN'T DISCLOSE ITS INVESTMENT IN THE PROJECT A SPOKESMAN SAID IT WAS QUOTE IN THE MILLIONS BUT NOT THE HIGH MILLIONS QUOTE A FULL PILOT PROGRAM IS EXPECTED TO BEGIN IN SEPTEMBER CORNING EXPECTS DEMAND FOR SUCH FLEET SAMPLES TO RISE IN NINETEEN NINETY FIVE AS AUTOMBILE MANUFACTURERS BEGIN USING CONVERTERS IN LARGER SCALE TESTS THE COMPANY ESTIMATES THAT THE U. S. MARKET FOR COLD START EMISSIONS CONTROL DEVICES INCLUDING ELECTRICALLY HEATED CATALYTIC CONVERTERS MAY REACH ONE HUNDRED MILLION DOLLARS BY TWO THOUSAND LOWER EMISSION STANDARDS BEGIN TAKING EFFECT IN THE NINETEEN NINETY SEVEN MODEL YEAR CONAGRA INCORPORATED SAID IT AGREED TO ACQUIRE A TWENTY PERCENT STAKE IN UNIVASA S. A. A UNIT OF DESC SOCIEDAD DE FOMENTO INDUSTRIAL S. A. OF MEXICO CITY TERMS WEREN'T DISCLOSED CONAGRA AN INTERNATIONAL FOOD CONCERN SAID UNIVASA PRODUCES AND MARKETS CHICKEN PORK PRODUCTS AND ANIMAL FEEDS IN MEXICO IT HAS ANNUAL SALES OF MORE THAN ONE HUNDRED EIGHTY FIVE MILLION DOLLARS CONAGRA SAID IT HAS AN OPTION TO INCREASE ITS STAKE IN UNIVASA TO JUST UNDER FIFTY PERCENT OVER FOUR YEARS CONAGRA SAID THE DEAL IS SUBJECT TO A DEFINITIVE AGREEMENT AND REVIEW BY THE MEXICAN GOVERNMENT IN THE AFIFI HOME A NOISY CHILD FILLED HAVEN OF WARMTH NESTLED IN THE RUBBLE OF THE SHATILA REFUGEE CAMP THERE IS A NEW FAMILY PASTIME CURSING YASSER ARAFAT FOR MAKING PEACE WITH ISRAEL OPINIONS DIVIDE HOWEVER OVER WHAT TO DO ABOUT IT THE CHOICES ARE FEW NOWHERE IN THE ARAB WORLD HAVE PALESTINIANS ENDURED MORE HORRORS THAN IN THE SQUALID CAMPS OF LEBANON AND NOWHERE NOW DO THE REFUGEES FEEL MORE BETRAYED BY MR. ARAFAT'S PLANS FOR PEACE LIKE MOST OF THE THREE HUNDRED FIFTY THOUSAND PALESTINIAN REFUGEES IN LEBANON RIMA AND AHMED AFIFI ENDED UP HERE BECAUSE THEIR FAMILIES FLED THE NINETEEN FORTY EIGHT ARAB ISRAELI WAR THE COUPLE MET AND MARRIED IN THE UNITED NATIONS RUN SHATILA CAMP THEY RAISED ELEVEN CHILDREN HERE AND ENDURED THE PAST TWENTY YEARS OF BLOODSHED ALONG THE WAY THE AFIFIS GAVE FOUR OF THEIR OWN TO WHAT REFUGEES CALL QUOTE THE REVOLUTION QUOTE ONE SON DIED IN THE ISRAELI INVASION OF NINETEEN EIGHTY TWO ANOTHER WAS BUTCHERED THAT YEAR BY ISRAELI BACKED MARONITE CHRISTIANS IN THE SABRA AND SHATILA MASSACRE A THIRD FELL FIGHTING THE SYRIAN BACKED SHIITE AMAL MILITIA THE FOURTH A DAUGHTER DISAPPEARED LAST YEAR ON A SUICIDE MISSION IN ISRAELI OCCUPIED SOUTH LEBANON MY CHILDREN WERE MARTYRED FOR THE LIBERATION OF PALESTINE YET THE GAZA JERICHO AGREEMENT BRINGS US NOTHING SAYS MR. AFIFI FOR HIM PEACE MEANS JUST ONE THING RECLAIMING HIS CHILDHOOD HOME IN NORTHERN ISRAEL YET THAT ISN'T EVEN CONTEMPLATED IN THE GAZA JERICHO AGREEMENT THE REVOLUTION WILL GO ON THE ELDERLY MAN INSISTS BUT WITHOUT HIS CHILDREN WE'VE PAID ENOUGH HIS WIFE DISAGREES THOSE WE LOST WE LOST FOR GOD SHE SAYS KNEELING UNDER THE MARTYR PORTRAITS OF HER DEAD SONS IN COMBAT GEAR THOSE WE STILL HAVE I HOPE WILL FOLLOW THEIR BROTHERS FOR PALESTINE WHETHER OR NOT ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION CAN MAKE THE GAZA JERICHO ACCORD WORK THIS IS ONE GROUP OF PALESTINIANS THAT WON'T SEE ANY BENEFIT AND THAT IN FACT MAY SUFFER THE GROUP STARTED OUT HERE MORE THAN FORTY FIVE YEARS AGO AS REFUGEES FROM THE NINETEEN FORTY EIGHT WAR THAT CREATED ISRAEL THE LEBANESE HAVE ONLY RELUCTANTLY SHELTERED THEM LEBANON HAS ALWAYS BEEN THE WORLD'S WORST PLACE TO BE PALESTINIAN THE STATE MINDFUL OF UPSETTING ITS MUSLIM CHRISTIAN BALANCE HAS KEPT THE MOSTLY MUSLIM REFUGEES IN ABJECT POVERTY FEW PALESTINIANS ARE ALLOWED TO WORK TO OWN BUSINESSES OR TO BUY REAL ESTATE OUTSIDE THE CAMPS NOW AFTER YEARS OF STRUGGLE AND OF LIVING IN THE DINGY OVERCROWDED CAMPS LEBANON'S PALESTINIANS FEEL THEY HAVE BEEN SHUNTED ASIDE ONCE AGAIN THEIR PLIGHT IS VIRTUALLY IGNORED BY THE PEACE PACT WHICH FOCUSES ON THE WEST BANK AND GAZA RATHER THAN ON NORTHERN ISRAEL WHERE THE REFUGEES HAIL FROM AND HERE IN LEBANON THE RIVAL FACTIONS OF CHRISTIANS MUSLIMS AND DRUSE ARE IN RARE AGREEMENT ON WHAT HAPPENS TO THE REFUGEES IF THERE IS PEACE THEY GO QUOTE SETTLING PALESTINIANS IN LEBANON IS OUT OF THE QUESTION QUOTE SAYS WALID JUMBLATT THE DRUSE LEADER AND GOVERNMENT MINISTER IN CHARGE OF RESETTLING THE EIGHT HUNDRED THOUSAND LEBANESE CITIZENS DISPLACED BY WAR WE REFUSE TO SOLVE THE PALESTINIAN PROBLEM AT LEBANON'S EXPENSE AND SO THREE GENERATIONS OF REFUGEES ARE SCRAPING BY HERE ON THEIR WITS ANGER AND THIRTY THREE MILLION DOLLARS A YEAR OF INTERNATIONAL AID THAT DOESN'T COME CLOSE TO ALLEVIATING THE LACK OF SUCH BASIC SERVICES AS PLUMBING AND ELECTRICITY THOUGH THE REFUGEES BITTERLY OPPOSE THE PEACE PLAN THEY ARGUE OVER WHAT THE ALTERNATIVE SHOULD BE THE DEBATE MAY BE MOOT CONSIDERING HOW FEW REAL OPTIONS THEY HAVE SOME WANT TO JOIN SYRIAN BACKED FORCES FIGHTING THE PLAN SOME HOPE SIMPLY FOR MONEY SEVERAL U. N. RESOLUTIONS SAY ALL PALESTINIAN REFUGEES SHOULD BE COMPENSATED FOR THEIR LOSSES THOUGH A MULTINATIONAL COMMITTEE ON REFUGEES CREATED AT THE MADRID PEACE CONFERENCE HAS YET TO PUBLICIZE A SINGLE CONCRETE PROPOSAL RUMORS ARE SWIRLING IN THE CAMPS A PALESTINIAN PHARMACIST IN THE BURJ EL BARAJNEH CAMP FOR INSTANCE INSISTS THAT WESTERN DIPLOMATS ARE MAKING TRICKS FOR US TO RESETTLE IN CANADA EUROPE AND AUSTRALIA OTHER REFUGEES IMAGINE RICHES COMING TO THEM FROM A COMPENSATION FUND SET ASIDE BY THE U. S. SURMISES ONE SCHOOLTEACHER ARAFAT LOYALISTS FOR THEIR PART HAVE PUT OUT THE WORD COMPLETELY UNSUBSTANTIATED THAT A SECRET DEAL BETWEEN THE P. L. O. AND ISRAEL WILL LET LEBANON'S REFUGEES MOVE TO AUTONOMOUS PALESTINE OR RECEIVE COMPENSATION DURING THE THIRD YEAR OF AUTONOMY YOU CAN'T TELL THESE PEOPLE THEY'RE NOT GOING BACK SAYS MOHAMMED HASAN A PALESTINIAN AND THE U. N.'S CHIEF OF REFUGEE WORK IN THE BEKAA VALLEY IF YOU SAY THAT YOU'RE WITH THE ENEMY THE MOST COMMON EXPECTATION POST GAZA JERICHO ISN'T OF PEACE AT ALL BUT OF MORE QUOTE REVOLUTION QUOTE AT THE EIN EL HELWEH CAMP ABOVE THE LEBANESE CITY OF SIDON MUNIR MAKDAH DRILLS HIS TROOPS AS HE ALWAYS HAS THE FORMER HEAD OF P. L. O. FORCES IN LEBANON FIRES AN A. K. FORTY SEVEN ASSAULT RIFLE INTO THE TURF AS HE BARKS COMMANDS TO A FEW DOZEN SOLDIERS AGES TWELVE TO FORTY WHO JOG IN FORMATION THEY CARRY WEAPONS OF EVERY SHAPE AND SIZE AUTOMATIC PISTOLS GRENADE LAUNCHERS AND BIGGEST OF ALL MASSIVE M. TWO FORTY NINE SAW MACHINE GUNS TOTED BY MR. MAKDAH'S BODYGUARDS UNTIL SEPTEMBER THESE MEN AND BOYS WERE AMONG THE P. L. O.'S MOST HARDENED FIGHTERS THE LAST REMNANTS OF MR. ARAFAT'S TWENTY THOUSAND MAN ARMY THAT THE ISRAELIS ROUTED FROM LEBANON IN NINETEEN EIGHTY TWO BUT AFTER MR. ARAFAT SHOOK HANDS WITH YITZHAK RABIN IN WASHINGTON MR. MAKDAH AND HIS MEN MUTINIED NOW THEY ARE CONSIDERING JOINING SYRIAN BACKED GROUPS THAT ARE FIGHTING AGAINST THE GAZA JERICHO PLAN FOR TWENTY SIX YEARS WE THOUGHT ARAFAT WOULD LEAD US TO PALESTINE SAYS MR. MAKDAH A REMARKABLY SERENE MAN AS HE RESTS ON THE COUCH OF HIS NEW OFFICE HIS LAST HEADQUARTERS LOCATED OFF DEATH STREET IN EIN EL HELWEH WAS RECENTLY DESTROYED BY AN ISRAELI ATTACK HELICOPTER UNBUTTONING HIS SHIRT TO REVEAL A BULLET SCAR ON HIS CHEST THE THIRTY THREE YEAR OLD GUERRILLA TICKS OFF THE ENEMIES HE HAS FOUGHT IN TWENTY YEARS AS AN ARAFAT LOYALIST ISRAELIS SYRIANS FOUR FACTIONS OF PALESTINIANS LEBANESE CHRISTIANS SHIITES AND DRUSE IT'S LIKE YOUR FATHER WHO BRINGS YOU UP FROM CHILDHOOD HE SAYS OF MR. ARAFAT ADDING WITHOUT A TRACE OF IRONY THEN SUDDENLY YOU REALIZE HE'S A KILLER MR. ARAFAT LARGELY CUT OFF THE PALESTINIANS IN LEBANON A YEAR AGO WHEN HIS REPRESENTATIVES STARTED SECRETLY MEETING WITH ISRAELI OFFICIALS TO WORK OUT THE GAZA JERICHO AGREEMENT THE P. L. O. CHAIRMAN STOPPED SENDING FUNDS HERE HIS LOYALISTS SAY CAUSING AN UPROAR AMONG THE THOUSANDS OF REFUGEE FAMILIES WHO RELIED ON THE P. L. O.'S HEALTH CLINICS SURVIVORS' BENEFITS AND OTHER SUBSIDIES ARAFAT OPPONENTS SAY HE IS USING PURSE STRINGS TO COMPEL COMPLIANCE WITH HIS DIPLOMACY HIS SUPPORTERS SAY HE ISN'T THAT MACHIAVELLIAN YOU KNOW ARAFAT WHEREVER HE IS HE PAYS LAUGHS SAYID WEHBE A LONGTIME P. L. O. OPERATIVE IN THE BURJ EL BARAJNEH CAMP NOW HE'S PUTTING HIS MONEY INTO GAZA AND JERICHO THOSE AREAS SPARKLE WHEN COMPARED WITH THE DEVASTATION OF LEBANON'S REFUGEE CAMPS MOST OF THE CAMPS WERE BUILT AS TEMPORARY SHELTERS MORE THAN FORTY YEARS AGO WHAT AMENITIES THAT ONCE EXISTED WERE DESTROYED IN THE CAMP WARS OF THE NINETEEN EIGHTIES WHEN SYRIAN BACKED PALESTINIAN AND SHIITE MILITIAS FIGHTING THE PRO ARAFAT FORCES IN THE CAMPS LOBBED SHELLS INTO THE CAMPS PLUMBING SEWAGE AND ELECTRICITY WERE DESTROYED THE WARRENS OF CEMENT AND CORRUGATED METAL ARE ALSO DANGEROUSLY OVERCROWDED LEBANESE AUTHORITIES HAVE LONG BARRED THE U. N. FROM EXPANDING THE CAMPS EITHER BY BUILDING NEW STORIES ON EXISTING BUILDINGS OR BY ACQUIRING NEW LAND IN FACT OVER THE PAST TWENTY YEARS ISRAELI AND LEBANESE GUNS HAVE DEMOLISHED FOUR REFUGEE CAMPS IN LEBANON WHILE THE REFUGEE POPULATION WITH ITS HIGH BIRTH RATE HAS BEEN GROWING THREE PERCENT A YEAR NOW SOME SIX THOUSAND PALESTINIAN FAMILIES REFUGEES FROM REFUGEE CAMPS ARE SQUATTING IN BOMBED OUT BUILDINGS AROUND BEIRUT SAYS JOHN FENNESY THE U. N.'S DEPUTY CHIEF OF REFUGEE OPERATIONS IN LEBANON MANY FACE EVICTION WITH NOWHERE LEFT TO GO NEAR THE AFIFIS' HOME ON THE WESTERN EDGE OF THE SHATILA CAMP CHILDREN SCALE THIRTY FOOT MOUNDS OF RUBBLE AS IF THE HEAPS WERE JUNGLE GYMS A FOUR YEAR OLD BOY FINDS HIS TOY FOR THE DAY A SMASHED RED BUCKET THE DEBRIS IS HOME TO SEVERAL FAMILIES WHO HAVE BURROWED CAVES FOR THEMSELVES WITH THE RATS THOUGH MANY PALESTINIAN REFUGEES LIVED ON THIS SITE BEFORE ITS DESTRUCTION IN THE SHIITE AMAL SIEGE OF THE LATE NINETEEN EIGHTIES THE U. N. CAN'T TOUCH THE DEBRIS NOW THAT'S BECAUSE THE AREA WHICH TECHNICALLY LIES JUST OUTSIDE THE SHATILA BOUNDARY IS PART OF LEBANESE PRIME MINISTER RAFIK HARIRI'S BLUEPRINT FOR A ONE HUNDRED MILLION DOLLAR SPORTS COMPLEX DUBBED SPORTS CITY IT WILL HELP THE LEBANESE CITIZEN SAID MR. HARIRI AS HE LAID THE CORNERSTONE IN SEPTEMBER QUOTE TO ACHIEVE HIS GOALS OF DIGNITY QUOTE INSIDE THE WRECKED PALESTINIAN CAMPS THE SYRIANS ARE FIRMLY IN CONTROL AS THEY HAVE BEEN IN MOST OF LEBANON SINCE ENDING THE COUNTRY'S CIVIL WAR IN NINETEEN NINETY BEFORE ENTERING OR LEAVING MOST CAMPS CARS MUST PASS THROUGH TWO CHECKPOINTS ONE SYRIAN AND ONE LEBANESE INSIDE PALESTINIANS FROM DAMASCUS KEEP A TIGHT LID ON THINGS CRAMPING THE USUAL PALESTINIAN DELIGHT IN POLITICAL BANTER IF YOU TELL THE TRUTH WHISPERS ONE FRIGHTENED MAN IN BURJ EL BARAJNEH THEY TAKE YOU OFF TO PRISON IN SYRIA HEZBOLLAH THE IRANIAN BACKED SHIITE GROUP IS ALSO ACTIVE IN THE PALESTINIAN CAMPS PROVIDING WATER AND SERVICES IN AN ATTEMPT TO WOO THE PALESTINIANS THEIR POSTERS OF IRANIAN AND LEBANESE AYATOLLAHS AND THEIR HARSH ANTI ISRAEL SLOGANS PAPER THE WALLS AND THEIR WATER TANKS EMBLAZONED WITH THE IRANIAN FLAG ARE A CHERISHED ASSET OF MANY RUINED NEIGHBORHOODS WHEN THE P. L. O. STOPPED SENDING MONEY FOR MEDICINES HEZBOLLAH CHIPPED IN SAYS THE PHARMACIST IN BURJ EL BARAJNEH THIS PICTURE OF PALESTINIANS AS POLITICAL PAWNS IS SHARPEST IN THE BEKAA VALLEY THE SWEEPING BASIN OF RICH BROWN SOIL THAT RUNS THE LENGTH OF EASTERN LEBANON FROM THE FOURTH FLOOR OF THE OLD FRENCH ARMY BARRACKS IN BAALBECK CAPITAL OF THE BEKAA PALESTINIANS CAN SEE OPEN LAND ALL THE WAY TO THE HORIZON YET SIX THOUSAND THREE HUNDRED OF THEM LIVE TEN TO A ROOM IN THE COLONIAL FORT THEIR FAMILY HOMES SINCE NINETEEN FORTY EIGHT AROUND BACK TAMAM AND SALEH GHOZLAN ARE STARTING MARRIED LIFE IN THE OLD HORSE STABLES ONE MORNING WHILE HER HUSBAND SEARCHES FOR WORK IN THE CAMP MRS. GHOZLAN COOKS RICE ON A SMALL BURNER ON THE FLOOR OUTSIDE IT IS THIRTY FIVE DEGREES IN THE BEKAA PLATEAU ELEVATION FOUR THOUSAND FEET INSIDE THE LEAKY CEMENT STALL IT IS COLDER THIS PLACE WAS BUILT FOR ANIMALS SAYS MRS. GHOZLAN NINETEEN YEARS OLD APOLOGIZING FOR THE WET FLOOR OF THE TINY TOILET CUBICLE A FEW DOORS AWAY KIFA ATOUR'S WIFE AND BABY ALREADY HAVE THEIR FIRST COLDS OF THE LONG WINTER THEIR STALL IS A BIT WARMER THOUGH THANKS TO A SMALL KEROSENE HEATER MR. ATOUR TWENTY ONE EARNS THIRTY DOLLARS A MONTH AS A RESERVE GUERRILLA FOR A PALESTINIAN FACTION CALLED SAIQA CREATED BY SYRIA HIS CONNECTIONS ALSO LANDED HIM PERMISSION TO CONVERT AN OLD WATER TANK NEXT TO HIS HOME INTO A ONE CHAIR BARBER SHOP MR. ATOUR'S MAIN INTEREST HOWEVER IS WAR HIS HOBBY IS MAKING MODEL FIGHTER JETS FROM SCRAP METAL AND LIVE BULLETS MR. ARAFAT HE SAYS IS A TRAITOR WHO HAS LEFT US HERE WITHOUT HOPE ON THE WALL ABOVE HIS BABY'S CRIB MR. ATOUR HAS TACKED A LETTER HE WROTE TO HIS DEAD MOTHER ADORNED WITH PHOTOS OF HIMSELF IN COMBAT GEAR OH MOTHER IT SAYS RESCUE ME FROM THIS STRANGE WORLD I LONG TO DIE IN YOUR ARMS BEFORE I DIE FROM MY ENEMY'S BULLETS QUOTE MY COMPANY CALCO PRODUCES CALCINED PETROLEUM COKE A CRITICAL RAW MATERIAL USED IN THE MANUFACTURING OF ALUMINUM LIKE MANY AMERICAN COMPANIES IN THE ALUMINUM BUSINESS WE FIND OURSELVES IN A CRISIS OVER THE PAST FOUR YEARS THE COMMONWEALTH OF INDEPENDENT STATES HAS GROWN SO DESPERATE FOR HARD CURRENCY THAT IT HAS QUADRUPLED ITS EXPORTS OF PRIMARY ALUMINUM TO THE WEST DRIVING WORLD PRICES DOWN TO FORTY NINE CENTS A POUND IN NINETEEN NINETY THREE FROM NINETY EIGHT CENTS A POUND IN NINETEEN EIGHTY NINE AT CURRENT PRICES NO WESTERN ALUMINUM SMELTER OPERATING IN A FREE MARKET ENVIRONMENT IS PROFITABLE THERE IS A LOT AT STAKE HERE LESS THAN A MONTH AGO REYNOLDS METALS ANNOUNCED PLANS TO CUT PRODUCTION AND LAY OFF EMPLOYEES THE MOVE FOLLOWED RECENT NEWS FROM ALUMINUM COMPANY OF AMERICA OF PRODUCTION CUTS ALUMINUM IS CLASSIFIED AS A STRATEGIC METAL AND IS VITAL TO U. S. ECONOMIC AND DEFENSE INTERESTS ALUMINUM SMELTING IS A COMPLEX PROCESS AND ONCE THE DOMESTIC INDUSTRY LOSES CAPACITY IT IS UNLIKELY THAT IT WILL BUILD ITSELF UP AGAIN YET PROTECTIONISM IS NOT A GOOD ANSWER RESTRICTING C. I. S. EXPORTS TO THE U. S. WOULD MOVE THE WORLD AWAY FROM FREE TRADE EUROPE HAS ALREADY LIMITED THE ACCESS OF C. I. S. ALUMINUM TO ITS MARKET WITH NO U. S. OR EUROPEAN MARKET TO TAKE ITS EXPORTS THE C. I. S. WILL LOSE A SOURCE OF HARD CURRENCY AND FACE GREATER UNEMPLOYMENT CALCO DOES HAVE A SOLUTION THAT WE BELIEVE WILL SUSTAIN GLOBAL ALUMINUM PRICES AT PROFITABLE LEVELS WITHOUT DAMAGING FREE TRADE THE PLAN REPRESENTS A POLITICALLY PALATABLE WAY FOR THE U. S. TO MEET ITS GOAL OF HELPING THE C. I. S. WE PROPOSE THAT SURPLUS C. I. S. ALUMINUM BE USED AS COLLATERAL FOR AMERICA'S GOVERNMENT GUARANTEED LOANS THIS WOULD REMOVE THE EXCESS SUPPLY FROM THE MARKET AND RETURN PRICES TO PROFITABLE LEVELS AS WELL AS PROVIDE HARD CURRENCY TO THE C. I. S. THE DEAL MIGHT INCLUDE THE STIPULATION THAT A PORTION OF THE FUNDS BE USED FOR UPGRADING C. I. S. SMELTING PLANTS THIS WOULD IMPROVE THE PHYSICAL ENVIRONMENT SURROUNDING C. I. S. SMELTERS WHICH HAVE BEEN DEVASTATED BY YEARS OF NEGLECT THE ESTIMATED MARKET VALUE OF THE ANNUAL SURPLUS OF C. I. S. ALUMINUM EXPORTS IS ABOUT SEVEN HUNDRED MILLION DOLLARS WHILE LOANS EXTENDED TO THE C. I. S. WOULD SUBSTANTIALLY EXCEED THE VALUE OF THE INVENTORY THE SEVEN HUNDRED MILLION DOLLARS COLLATERAL WILL REDUCE THE RISK ASSOCIATED WITH THESE LOANS OFFERING THE U. S. TAXPAYER SECURITY AND SUPPORT THE U. S. COMMITMENT TO HELPING THE C. I. S. ECONOMICALLY IN REAL TERMS THIS PLAN WOULD PROVIDE A SENSIBLE ALTERNATIVE FOR CALCO'S CUSTOMERS IN TADZHIKISTAN THEY ARE AT PRESENT UNLOADING THEIR FRESHLY SMELTED ALUMINUM AT BARGAIN BASEMENT PRICES ON THE LONDON METAL EXCHANGE THEY HAVE TO DO SO TO RAISE ENOUGH CASH TO IMPORT RAW MATERIALS TO MAKE MORE ALUMINUM THEY ARE CAUGHT IN A VICIOUS CIRCLE UNDER OUR PLAN THE TAJIKS AND ONE HOPES OTHER C. I. S. SMELTERS WOULD BE ABLE TO LEVERAGE THEIR VALUABLE PRODUCT AND SECURE LOANS TO MODERNIZE THEIR PLANTS AND INVEST IN MORE EFFICIENT ENVIRONMENTALLY RESPONSIBLE TECHNOLOGY OUR PLAN WILL OF COURSE HELP CALCO AND OTHERS IN THE INDUSTRY BUT IT WON'T REALLY STAND IN THE WAY OF FREE TRADE PERHAPS BY PROVIDING LOAN GUARANTEES TO THE C. I. S. BACKED BY SURPLUS ALUMINUM THE U. S. CAN NOT ONLY EXTEND VALUABLE ECONOMIC ASSISTANCE BUT RESCUE ONE OF ITS KEY DOMESTIC INDUSTRIES AS WELL MR. EPSTEIN IS PRESIDENT AND C. E. O. OF CALCINED COKE CORPORATION THE SECURITIES AND EXCHANGE COMMISSION'S CHIEF ACCOUNTANT CONTENDED THAT ACCOUNTANTS MAY BE LOSING THEIR INDEPENDENCE ON THE ISSUE OF ACCOUNTING FOR EMPLOYEE STOCK OPTIONS WALTER SCHUETZE SAID HE FEARS QUOTE THAT C. P. A.S MAY HAVE BECOME CHEERLEADERS FOR THEIR CLIENTS QUOTE MOST OF WHICH OPPOSE A PROPOSAL THAT COMPANIES DEDUCT THE VALUE OF STOCK OPTIONS FROM EARNINGS ACCOUNTING FIRMS ARE AMONG NUMEROUS OPPONENTS TO THE DEDUCTION PROPOSAL WHICH IS BEING CONSIDERED BY THE FINANCIAL ACCOUNTING STANDARDS BOARD THE CHIEF RULE MAKING BODY FOR ACCOUNTANTS WHICH IS OVERSEEN BY THE S. E. C. THE F. A. S. B. BELIEVES STOCK OPTIONS ARE AN EXPENSE THAT SHOULD REDUCE COMPANIES' PROFITS LAST FEBRUARY THE SIX BIG ACCOUNTING FIRMS EXPRESSED THEIR OBJECTIONS TO THE F. A. S. B. PROPOSAL SAYING CHANGES IN STOCK PRICES MAKE IT DIFFICULT TO CALCULATE THE VALUE OF STOCK OPTIONS BUT WHEN THE TOPIC WAS FIRST RAISED TEN YEARS AGO MOST MAJOR ACCOUNTING FIRMS SUPPORTED CHARGING STOCK OPTIONS TO EARNINGS MR. SCHUETZE SAID IN A SPEECH YESTERDAY TO THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PHILIP CHENOK PRESIDENT OF THE C. P. A. GROUP SAID HE FOUND IT OFFENSIVE AND INAPPROPRIATE FOR THE CHIEF ACCOUNTANT OF THE S. E. C. TO SUGGEST A LOSS OF INDEPENDENCE OVER THE STOCK OPTION MATTER AS THE NEW YEAR HERALDS THE STRETCH DRIVE FOR THE CLINTONS' NATIONALIZED MEDICINE SCHEME IT IS CLEAR THAT THE POLITICAL AND BUDGETARY GROUND HAS SHIFTED BENEATH THEM NOWHERE HAS THAT BEEN MORE TRUE THAN IN MENTAL HEALTH AND ADDICTION COVERAGE THERE THE ADMINISTRATION ITSELF HAS BEATEN A RETREAT CUTTING BACK MAXIMUMS AND INCREASING OUT OF POCKET COSTS AT LEAST UNTIL THE YEAR TWO THOUSAND ONE OR SO DESPITE THE ALL TOO REAL PROBLEMS OF MENTAL ILLNESS ONE IS TEMPTED TO APPLAUD THIS DAWNING OF RESTRAINT YET MERELY DICKERING OVER PRICE COULD DIVERT ATTENTION FROM A FUNDAMENTAL ISSUE THE QUESTION OF WHEN DISPIRITEDNESS BECOMES DEPRESSION ANXIETY BECOMES NEUROSIS OR MISBEHAVIOR BECOMES A QUOTE DISORDER QUOTE IS THE U. S. DESTINED TO BE A THERAPEUTIC STATE IN WHICH ALL DEFICIENCIES OF BODY AND MIND ARE THE PROPER CONCERN OF WASHINGTON AND ITS FIFTY STATE ADJUNCTS TO DATE MEDICAL ATTENTION HAS BEEN FINANCED PUBLICLY FOR THE POOREST AND OLDEST AND SICKEST AMONG US AN INCREASINGLY LOOSE AND UNAFFORDABLE DISTINCTION GRANTED BUT AT LEAST AN ATTEMPT TO DRAW SOME LINES THE CLINTONS' PROPOSAL IS ALL ABOUT ERASING LINES AND NOWHERE IS THIS MORE PORTENTOUS THAN IN MENTAL HEALTH AND SUBSTANCE ABUSE TREATMENT TO GRASP THIS JUST LISTEN TO TIPPER GORE THE INSIDE CRUSADER FOR MORE GENEROUS COVERAGE IN THIS AREA THE VICE PRESIDENT'S WIFE HAS ARGUED THAT IN ANY GIVEN YEAR TWENTY EIGHT PERCENT OF ALL AMERICANS SUFFER FROM MENTAL PROBLEMS INCLUDING DRUG AND ALCOHOL ADDICTIONS AT A CLEVELAND FORUM SHE REFERRED TO FIFTY MILLION MENTALLY ILL INCLUDING FOURTEEN MILLION CHILDREN BEING CONSIGNED TO A CARE GHETTO OR RECEIVING NO HELP AT ALL IN THE U. S. THESE ARE STAGGERING NUMBERS AS MRS. GORE ACKNOWLEDGED THEY INCLUDE AFFLICTIONS RANGING FROM SEVERE SCHIZOPHRENIA TO MORE MILD BOUTS OF DEPRESSION THE MOST COMMON CONDITION AMONG THOSE INCLUDED IN THIS GROUP IS ANXIETY DISORDER THAT OUGHT TO GIVE US PAUSE WHO DOES NOT SUFFER FROM ANXIETIES WHEN DO THEY BECOME A CLINICAL DISORDER DESPITE THE WORK OF PSYCHIATRISTS TO DEFINE THE ILLNESSES THEY TREAT THE HISTORY OF GOVERNMENT ENTITLEMENTS SUGGESTS THERE WILL BE NO DEFINABLE LIMIT TO SUCH COMPLAINT THE NUMBER OF SUFFERERS IS LIKELY TO EXPAND OR CONTRACT BASED ON THE TENDERNESS OF THE HELPING HAND AVAILABLE AND THE HOURLY RATE IT CHARGES HOW MIGHT WE KNOW THIS CONSIDER THE EXPERIENCE OF MANY RESIDENTIAL COLLEGE CAMPUSES WHOSE STUDENT HEALTH PROGRAMS FUNCTION AS LABORATORIES OF THE CLINTON MODEL AT LEAST TEN PERCENT OF THESE COLLEGE STUDENTS RECEIVE PSYCHOLOGICAL HELP AND THE NUMBER MAY BE DOUBLE THAT AT SOME CAMPUSES ACCORDING TO ROBERT GALLAGHER DIRECTOR OF THE UNIVERSITY OF PITTSBURGH'S COUNSELING CENTER AND KNOWLEDGEABLE ABOUT THE SITUATION NATIONWIDE THE EFFECTIVE LIMIT IS THE BUDGET FOR PROFESSIONALS HANDLING THE LOAD IF YOU DOUBLED THE STAFF YOU COULD PROBABLY DOUBLE THE NUMBER COMING IN HE SAYS AS IT IS DESPITE TIGHTENED BELTS IN ACADEMIA THERE'S BEEN A GRADUAL INCREASE IN PATIENT DEMAND HE REPORTS AND THE NUMBER OF SESSIONS PER COUNSELED STUDENT IS INCREASING A FURTHER NOTE ON THIS FRONT IS A REPORT THIS FALL IN LEAR'S MAGAZINE ANECDOTAL AND RATHER DRAMATIZED OF THE COLLEGE HEALTH CENTER BECOMING A PRIME DISPENSARY OF PROZAC AND OTHER ANTIDEPRESSANT DRUGS THE SUBJECT OF A BEST SELLING BOOK PROZAC HAS BECOME A KIND OF METAPHOR FOR THE THERAPEUTIC STATE WITHOUT DOUBT THIS KIND OF DRUG HAS HELPED MANY IN GENUINE NEED OF THEIR RESTORATIVE POWERS YET AS PROZAC'S SALES ZOOMED TO MORE THAN ONE BILLION DOLLARS WITHIN FIVE YEARS OF INTRODUCTION IT SEEMINGLY APPEALED TO LARGE NUMBERS OF AMERICANS WHO ARE SIMPLY DISSATISFIED WITH THEIR PERSONALITIES AND DESIRE A SURER TICKET TO HAPPINESS AND SOCIAL SUCCESS HOW MANY OF THESE PEOPLE ARE AMONG THOSE LUMPED UNDER QUOTE ANXIETY DISORDER QUOTE IS HARD TO KNOW THOUGH PRESUMABLY THEY HAVE GRADUATED BEYOND ROUTINE THERAPY TO AN M. D. IDEALLY A PSYCHIATRIST TO GAIN THEIR PRESCRIPTIONS WHAT THE CLINTON PLAN WITH ITS EXPANDED PSYCHOPHARMACOLOGICAL BENEFITS WOULD ADD TO THE PROZAC CRAZE IS HARD TO FATHOM IN A MORE SPECIALIZED VEIN THE STATE OF WISCONSIN AND PERHAPS OTHERS HAS SEEN A RISE IN YOUNGSTERS CLASSIFIED AS HAVING OPPOSITIONAL DEFIANT DISORDER UNDER THE S. S. I. ARM OF SOCIAL SECURITY THIS TEMPERAMENT FLAW WHICH SOUNDS SUSPICIOUSLY AS IF IT COULD ENCOMPASS WHAT ONCE EARNED THE LABEL BRAT ENTITLES A PARENT TO INCREASED STATE SUPPORT WITHIN THE FIELD OF TREATMENT FOR ALCOHOL AND DRUG ADDICTIONS GREAT SHIFTS ARE OCCURRING AS COMPANIES AND THEIR INSURERS PULL BACK FROM THE RUNAWAY COSTS THAT THESE ENDEAVORS PILED UP IN THE NINETEEN EIGHTIES SO TOO ARE THE CLINTONITES BEING SCARED OFF FOR NOW BUT THE BASIC FRIGHT SEEMS TO BE ABOUT HOW LONG THESE PATIENTS RESIDE IN A FACILITY AND NOT WHO ALL THEY CONSIST OF AS SUBSTANCE ABUSE HAS EMERGED AS A DISABILITY UNDER THE LAW WHAT WAS A TAINT CAN TURN INTO A TOTEM FOR THOSE WHO WANT TO GAME THE SYSTEM AN ADDICT IS AN ADDICT IT MIGHT BE SAID BUT DO WE REALLY KNOW SOME PUT THE NUMBER OF ALCOHOLICS IN THE U. S. AS HIGH AS THIRTY MILLION AND WHAT ABOUT ALL THE ENABLERS AND CO DEPENDENTS SHOULD THEY RECEIVE TAX PAID TREATMENT TOO AND WHAT ADDICTIONS SHALL WE STOP AT TOBACCO SEX WHO KNOWS WHAT PSYCHOLOGICAL ODYSSEY LIES BEYOND IRA MAGAZINER'S TWO THOUSAND ONE ACTUALLY IN MENTAL HEALTH THE ANSWER MAY COME DOWN TO THE PHRASE FUNCTIONAL IMPAIRMENT WHICH IS TO BE THE THRESHOLD USED BY THE FIFTY STATE MEDICAL DIRECTORATES IN DECIDING EACH ACCORDING TO ITS OWN LIGHTS WHOSE BILLS TO PAY AMERICA IS ENGULFED BY A WAVE OF DISORDER SEEKING AND BLAME SHIFTING IT IS SOMEBODY ELSE'S OR SOME OTHER THING'S FAULT WHEN INDIVIDUALS ARE MESSED UP AND THE DIAGNOSES ARE ADAPTIVE TO THE CIRCUMSTANCES THE NATIONAL INSTITUTE OF MENTAL HEALTH REPORTED THAT BY NINETEEN NINETY SIXTY NINE BILLION DOLLARS WAS BEING SPENT IN THE U. S. IN THIS AREA MRS. GORE MAINTAINS THAT THE PROBLEM INCLUDING SUBSTANCE ABUSE IS COSTING THE ECONOMY TWO HUNDRED SEVENTY BILLION DOLLARS A YEAR WHICH THEN PROBABLY BECOMES THE CEILING PRICE FOR DEALING WITH IT BUT COST IS NOT THE ONLY GREAT RISK IN THE EXTENSIVE AMBITIONS OF THE THERAPEUTIC STATE ANOTHER IS THE LIKELIHOOD THAT AS NEARLY EVERYBODY IS QUOTE HELPED QUOTE FEWER OF THOSE WHO UNDENIABLY OUGHT TO HAVE IT WILL GET IT OR ENOUGH OF IT THE DISPUTE OVER PAYING FOR ANYTHING MORE THAN SHORT BURST DETOX FOR ADDICTS IS PART OF THIS CONCERN MAYBE FOR THE WORST OF WRETCHES ON OUR NATION'S STREETS A LONGER CONFINEMENT SOMEWHERE IS THE ONLY ANSWER THE LAME TRUTH IS THAT WHILE THE U. S. REMAINS ON A TEAR TO INSURE EVERYONE FOR EVERYTHING FROM HANGNAILS TO HEARTACHES ITS PUBLIC SPACES AND PRISONS TEEM WITH LOST SOULS WHO IN MANY CASES COULD BE HELPED WITH DRUGS AND THERAPIES THAT MEDICINE HAS DEVELOPED IN THAT RESPECT MRS. GORE AND HER LOBBY WHICH INCLUDES ROSALYNN CARTER AND REPUBLICANS SUCH AS ALAN SIMPSON AND PETE DOMENICI ARE SO RIGHT INTELLIGENT AND CARING APPLICATION OF MENTAL HEALTH RESOURCES HAS THE POTENTIAL TO CURB ALL KINDS OF ANTISOCIAL BEHAVIOR BUT WE HAVE TO WONDER IN HOW MANY OF THOSE AWFUL INSTANCES WAS THE ABSENCE OF A TREATMENT FACILITY THE DIFFERENCE AS OPPOSED TO THE SOCIETAL WILL TO SEE THAT ITS WAYWARD ELEMENTS GO AND STAY WHERE THEY MIGHT GET ATTENTION FROM THAT CORE PATHOLOGICAL CONSTITUENCY IT IS A SERIES OF DISTINGUISHABLE STEPS UP THROUGH THE UNDERCLASS TO THE DYSFUNCTIONAL FALLOUTS FROM THE MIDDLE CLASS AND FINALLY TO THOSE STILL AFFLUENT BUT ALIENATED FROM THE WORLD AROUND THEM AT EACH OF THESE LEVELS THERE SURELY EXIST THE CLINICALLY ILL BUT THERE IS OTHER BETTER ATTENTION WE CAN GIVE THEM FIRST THAT OTHER IS A STABILIZED SOCIAL ORDER THAT HELPS THE DISTRACTED TO MAINTAIN SOME PURPOSE IN THEIR LIVES THAT PREVENTS THEM FROM CRASHING OFF THE ROADWAY IN THE FIRST PLACE IT STARTS WITH HAVING A PARENT TEND TO A CHILD WITH HAVING A FATHER STAY WITH A MOTHER WITH HAVING THE TELEVISION AND THE C. D.S TURNED OFF LONG ENOUGH TO RELATE ONCE A DAY AND WITH HAVING THE WHOLE BUNCH TRUNDLE OFF TO CHURCH OR SOME SUCH PLACE WHERE THEY MIGHT REGULARLY REFLECT ON LOVE AND OTHER VALUES THAT USED TO HOLD FAMILIES AND INDIVIDUALS TOGETHER IN STRESSFUL TIMES IF WE HAD TO ISOLATE ONE SET OF SHORTCOMINGS THAT HAVE LED AMERICANS TO WHERE THEY ARE TODAY WITH TIPPER GORE ESTIMATING THAT MORE THAN A QUARTER OF US ARE IN NEED OF SPECIAL HELP IT WOULD BE THOSE ADDRESSED IN THAT PRESCRIPTION WE SUSPECT MRS. GORE WOULDN'T DISAGREE WITH OUR ANALYSIS AS FAR AS IT GOES BUT WOULD HOLD OUT NEVERTHELESS FOR A VAST NEW TAXPAYER SUPPORTED ENTITLEMENT TO DEAL WITH MATTERS SHE THINKS HAVE GOTTEN BEYOND HEARTH AND HOME THAT BRINGS US TO THE FUNDAMENTAL DIVIDE IN U. S. POLITICS WHICH IS WHERE IN ADDITION TO THE PURE ECONOMIC CONSIDERATIONS OF THE CLINTONS' MEDICINE SHOW THE LEGISLATIVE BATTLE OF THE NEXT YEAR NEEDS TO BE FOUGHT OUT WE APPARENTLY WERE HEALTHIER AS A PEOPLE PSYCHOLOGICALLY AND IN MANY CASES PHYSICALLY WHEN WE SPENT LESS TRYING TO LET EVERYONE FEEL JUST RIGHT THAT IS A PARADOX THAT THOSE WHO DEMAND THAT WE SPEND SO VERY MUCH MORE MUST FIRST EXPLAIN OTHERWISE THE WILD FISCAL CURRENTS WILL LEAVE THEM EVENTUALLY WITH NOTHING TO STAND ON THIS WEEK THE SMOG REGULATORS IN THE LOS ANGELES BASIN PRECURSORS TO WHAT MUCH OF THE NATION FACES UNDER THE NEW CLEAN AIR ACT MAY TAKE A STEP BACK FROM AN ECONOMIC CHASM THEIR STORY MAY BE INSTRUCTIVE TO OTHER REGIONS NEARING DEADLINES FROM THE FEDS FOR COMPLIANCE WITH THIS HUGE AND SWEEPING LAW THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT AQMD IS LIKELY TO SUSPEND AN EDICT THAT NEARLY SIX THOUSAND EMPLOYERS OF MORE THAN ONE HUNDRED PERSONS REGULARLY SUBMIT AN QUOTE EMPLOYEE TRIP REDUCTION QUOTE PLAN EFFECTIVE FOR FIVE YEARS THIS REQUIREMENT HAS RESULTED IN MORE THAN THREE MILLION DOLLARS IN FINES AND OTHER PENALTIES AND FEES AND IS OUR MOST HATED RULE DISTRICT CHAIRMAN HENRY WEDAA TOLD THE LOS ANGELES BUSINESS JOURNAL HE WANTS TO APPROACH THE PROBLEM ANEW WITHIN SIX MONTHS WITH RIDE SHARING SCHEMES NOW THE COMPLIANCE REMEDY OF CHOICE AMONG OFFICIALS ACROSS THE COUNTRY THIS OUGHT TO SOUND A WARNING ON TOP OF ALL THE OTHER CONCERNS IN MEETING A PAYROLL COORDINATING HOW EMPLOYEES GET TO WORK IS A BIT MUCH THE AQMD HAS IMPOSED MANAGERIAL COST ON TOP OF THE FINES AND THE LOGISTICAL NUISANCE OF CHOICE PARKING SPACES THAT NOW SIT EMPTY DESIGNATED FOR CARPOOL VEHICLES AT MANY SOUTHERN CALIFORNIA WORKPLACES YET EVEN AS THE AQMD CONSIDERS A PAUSE OTHER JURISDICTIONS GO INTO OVERDRIVE TO ATTACK MOBILE SOURCES OF URBAN AIR POLLUTION IN THIS ROUNDABOUT WAY TRIP REDUCTIONS ARE MANDATED UNDER THE CLEAN AIR ACT IN NINE REGIONS THIS YEAR AND STRONGLY INDICATED IN MANY OTHERS BY NINETEEN NINETY SIX CARPOOLING ARRANGED BY THE BOSS IS LOCAL OFFICIALS' MOST FAVORED DEVICE FOR COMPLYING WITH THIS RULE BECAUSE IT MASKS THE COSTS WHICH AMOUNT TO ABOUT TWENTY FIVE THOUSAND DOLLARS FOR THE SMALLER EMPLOYERS COVERED AND TWO MILLION DOLLARS FOR A HUGE UTILITY COMPANY MORE OVERT METHODS SUCH AS CHARGING FOR PARKING PLACES PROMISE TO ELICIT EVEN MORE PROTESTS MEANWHILE THE MOST EFFECTIVE MEASURES FOR ATTACKING AUTO POLLUTION PEAK HOUR OR PEAK SMOG SEASON PRICING OF HIGHWAYS TO REDUCE CONGESTION AND ROADSIDE EXHAUST SENSORS DESIGNED TO NAB THE TWENTY PERCENT OF CARS THAT MOST FOUL THE ENVIRONMENT CONTINUE TO BE GIVEN SHORT SHRIFT GRANTED THEY WOULD DRAW HOWLS AS WELL BUT AT LEAST THEY COULD YIELD SIGNIFICANTLY CLEANER AIR WHICH IS MORE THAN CAN BE SAID FOR COMMUTER COORDINATION DRIVES OR VARIOUS OTHER INTRUSIVE MEASURES UNIVERSAL INSPECTIONS ALTERNATIVE VEHICLES AND FUELS COMING DOWN THE CLEAN AIR PIKE CALIFORNIA HAS SHOULDERED THE HEAVIEST WEIGHT FROM SMOG REGULATIONS NOT ONLY BECAUSE IT'S HAD THE NATION'S DIRTIEST AIR BUT BECAUSE IT ESTABLISHED ITS OWN STRICT CONTROL MECHANISMS LONG BEFORE WASHINGTON BORE DOWN THE BACKLASH NOW BEING FELT THERE MAY BE A TASTE OF THE REACTION TO COME NATIONALLY AS WASHINGTON TRIES TO IMPOSE THIS LAW ALTHOUGH THE AQMD HAS LATELY BEEN MORE ACCOMMODATING TO BUSINESS IN GENERAL AS ITS OFFICIALS GREW CONSCIOUS OF THE RECESSION THEY AGGRAVATED IN THE LOS ANGELES AREA THERE IS REASON TO SUSPECT A PARTICULAR POLITICAL RETREAT IN THE CASE OF RIDE SHARING MR. WEDAA IS PERFORMING A QUICK CHANGE ACT HE WAS PUT ON THE AGENCY'S BOARD BY HIS FELLOW CITY COUNCILMEN IN ORANGE COUNTY AND THE STATE LEGISLATURE IN A REBUKE TO THE AQMD LAST YEAR MADE IT EASIER FOR HIM TO BE REMOVED IN FACT HE IS BEING CHALLENGED IN A VOTE TOMORROW ON THE EVE OF HAVING RIDESHARING RELIEF CONSIDERED AT LEAST THIS SHOWS THAT THE AQMD BOARD THOUGH NOT DIRECTLY ELECTED IS RESPONSIVE TO ELECTORAL PRESSURES LAWMAKERS ELSEWHERE SHOULD SIMILARLY JERK THE LEASH ON SOME OF THEIR SMOG POOBAHS BUT THE ULTIMATE ANSWER HAS TO COME FROM THE NATION'S VOTERS WHO MUST INSIST ON CHANGES TO PUT SOME COST AND BENEFIT BALANCE IN THE CLEAN AIR ACT THE LAST TIME CONGRESS VISITED THIS SUBJECT AN OVERWHELMING MAJORITY CAST A CHEAP VOTE FOR CLEAR SKIES THAT IS NOW PRODUCING SOME VERY EXPENSIVE CONSEQUENCES MELLON BANK CORPORATION IS OFFERING A NEW CREDIT CARD THAT PROMISES TO REFUND ALL INTEREST PAID OVER TWENTY YEARS THE LATEST LURE IN A FIERCELY COMPETITIVE BATTLE TO WIN OVER CREDIT CARD USERS SUCH A REBATE WOULD AMOUNT TO EIGHT THOUSAND SIX HUNDRED SIXTY SEVEN DOLLARS FOR THE AVERAGE MASTERCARD HOLDER WHOSE MONTHLY CREDIT CARD BALANCE IS TWO THOUSAND FOUR HUNDRED TWENTY ONE DOLLARS MELLON SAID THE BANK SAYS SIXTY SIX PERCENT OF CREDIT CARD HOLDERS REGULARLY CARRY BALANCES FROM ONE MONTH TO THE NEXT MELLON'S NEW NO FEE QUOTE CORNERSTONE MASTERCARD QUOTE WHICH CHARGES ANNUAL INTEREST RATES OF FOURTEEN POINT NINE PERCENT AND SEVENTEEN POINT NINE PERCENT FOR PREMIUM AND STANDARD CARDS RESPECTIVELY OFFERS TO RETURN ONE HUNDRED PERCENT OF ALL INTEREST PAID ON THE CARD AFTER TWENTY YEARS AS LONG AS THE CARD IS USED AT LEAST ONCE A YEAR IF THE CARD HOLDER CHOOSES TO REDEEM THE INTEREST BEFORE TWO DECADES THE REFUND IS PRO RATED TEN PERCENT AFTER TWO YEARS FIFTEEN PERCENT AFTER THREE YEARS TWENTY PERCENT AFTER FOUR YEARS AND FIVE PERCENTAGE POINTS MORE EACH YEAR THROUGH THE TWENTIETH YEAR ANALYSTS BELIEVE THE CARD WILL BE VERY POPULAR MELLON'S GOING TO GET A QUICK HIT IN GATHERING ACCOUNTS AND BUILDING BALANCES AT A HIGH RATE OF INTEREST SAYS JAMES DALY EDITOR OF THE CREDIT CARD NEWS TRADE JOURNAL BUT MELLON'S PROFITABILITY WILL DEPEND ON HOW QUICKLY AND TO WHAT EXTENT CONSUMERS CASH IN REBATES MELLON MAKES MONEY BECAUSE IT NEEDS TO INVEST ONLY A PORTION OF THE INTEREST PAYMENTS TO COVER THE LIABILITY AT THE END OF THE TWENTY YEARS AND SOME CARD HOLDERS WILL LIKELY ELECT PARTIAL REFUNDS RATHER THAN LETTING THE REFUND ACCRUE FOR TWENTY YEARS CONSUMERS ARE GOING TO LOVE IT SAYS GERRI DETWEILER EXECUTIVE DIRECTOR OF THE BANKCARD HOLDERS OF AMERICA A CONSUMER EDUCATION ADVOCACY GROUP IF THEY HOLD ON TO THE DISCOVER CARD BECAUSE IT GIVES A FEW PENNIES BACK AT THE END OF THE YEAR THEY'LL DEFINITELY HOLD ON TO THIS IF THEY THINK THEY'RE GOING TO GET ALL THEIR INTEREST BACK DISCOVER REBATES ZERO POINT TWO FIVE PERCENT OF PURCHASES BACK ON THE FIRST ONE THOUSAND DOLLARS OF PURCHASES ZERO POINT FIVE ZERO PERCENT FOR THE SECOND ONE THOUSAND DOLLARS ZERO POINT SEVEN FIVE PERCENT FOR THREE THOUSAND DOLLARS AND ONE PERCENT FOR ABOVE THREE THOUSAND DOLLARS HOWEVER MS. DETWEILER CAUTIONS THAT CONSUMERS ARE BETTER ADVISED TO GET A CARD WITH A LOW INTEREST RATE OR PAY OFF THEIR ENTIRE BALANCE EACH MONTH THE IMPORTANT THING IS THAT EVERY PENNY OF INTEREST THAT YOU PAY NOW IS MONEY THAT YOU COULD HAVE BEEN PUTTING TO WORK FOR YOURSELF BY INVESTING OR SAVING IT GETTING THE INTEREST BACK IN TWENTY YEARS IS NOT THE SAME AS GETTING IT UP FRONT AND DOING WHAT YOU WANT WITH IT QUOTE SHE SAYS SOME MARKET FORECASTERS ARE LOOKING TO THE STARS AND PREDICTING NOT MORE OF THE BIG BANG OF RECENT DAYS BUT A BIG BUST QUOTE FINANCIAL ASTROLOGERS QUOTE AS THEY'RE CALLED SAY THE STOCK MARKET WILL PEAK MIDMONTH TO BE FOLLOWED SOON BY A CRASH OR AT LEAST A SHARP CORRECTION IN EQUITY PRICES A RARE ALIGNMENT OF THE PLANETS FROM YESTERDAY TO TOMORROW WILL CREATE INSTABILITY IN POLITICS THE MARKETS AND THE ECONOMY SAYS PAUL B. FARRELL WHO EDITS THE MONEY ASTROLOGY FORECASTS AND STRATEGIES NEWSLETTER THIS PERIOD MARKS THE TIGHTEST CONCENTRATION OF SEVEN KEY PLANETS SINCE THE APPLE HIT NEWTON'S HEAD THREE HUNDRED YEARS AGO FARRELL WROTE IN A RECENT ISSUE FOR COMPARISON WHEN THE MARKET HIT ITS AUGUST NINETEEN EIGHTY SEVEN HIGH BEFORE CRASHING THE FOLLOWING OCTOBER ONLY FIVE PLANETS WERE CLOSELY ALIGNED MR. FARRELL A FORMER MARINE CONCEDES THAT ASTROLOGICAL PREDICTIONS AREN'T EXACTLY PINPOINT BOMBING ALL HE CAN BE CERTAIN OF IS THAT WE ARE GOING TO GO OVER THE CLIFF SOMETIME AFTER THE ALIGNMENT ARCH CRAWFORD WHO PUBLISHES THE CRAWFORD PERSPECTIVES NEWSLETTER AND PREDICTED THE NINETEEN EIGHTY SEVEN CRASH BASED ON TECHNICAL INDICATORS AND THE FIVE PLANET ALIGNMENT PROJECTS THAT BECAUSE OF THE SEVEN PLANET CONSORTIUM THE DOW JONES INDUSTRIAL AVERAGE WILL FALL ANYWHERE FROM SEVEN HUNDRED POINTS TO ONE THOUSAND TWO HUNDRED POINTS BY LATE MARCH THE ANCIENT MAYANS HE ADDS KNOWN FOR THEIR ASTRONOMICAL SAVVY FLED FROM PLANETS SO TIGHTLY ALIGNED ASTROLOGIST HENRY WEINGARTEN SAYS HE CAREFULLY CHARTED SATURN'S DIALOGUE WITH PLUTO ON JANUARY FIRST KNOWN IN ASTROLOGICAL CIRCLES AS SATURN SQUARING PLUTO WITH SATURN REPRESENTING STREAMLINING AND PLUTO CONNOTING RESTRUCTURING THAT PLANETARY COLLUSION COULD BESPEAK A NEGATIVE REALITY HE SAYS SATURN AND PLUTO THE SEVEN PLANET SUMMIT AND LAST NIGHT'S NEW MOON POINT TO A NEW AND NEGATIVE PHASE IN THE STOCK MARKET WITH A CRASH BY FEBRUARY TENTH HE PREDICTS MR. WEINGARTEN SAYS A NUMBER OF ASTROLOGERS WHO WON'T BE NAMED BUT WORK DAYS AS MUTUAL FUND MANAGERS ARE PREPARING TO SELL THEIR STOCKS BEFORE THE BIG CRASH BOTH MR. FARRELL AND MR. WEINGARTEN CONCEDE THAT ASTROLOGICAL INDICATORS ARE NOT ALWAYS ACCURATE MR. WEINGARTEN FOR EXAMPLE PREDICTED GEORGE BUSH WOULD WIN THE NINETEEN NINETY TWO U. S. PRESIDENTIAL ELECTION FOUR SENATORS LIKELY TO PLAY A KEY ROLE IN REWRITING THE SUPERFUND LAW URGED PRESIDENT CLINTON TO ALTER THE WHITE HOUSE'S ALL BUT COMPLETE PROPOSAL FOR CLEANING UP ABANDONED HAZARDOUS WASTE SITES IN A LETTER TO THE PRESIDENT SENATORS MAX BAUCUS D. MONTANA FRANK LAUTENBERG D. N. J. DAVID DURENBERGER R. MINNESOTA AND JOHN CHAFFEE R. R. I. ARGUED FOR TOUGHER CLEANUP REQUIREMENTS THAN CONTEMPLATED IN AN INTERAGENCY PLAN CURRENTLY AWAITING THE PRESIDENT'S APPROVAL SENATOR BAUCUS IS CHAIRMAN OF THE SENATE ENVIRONMENT AND PUBLIC WORKS COMMITTEE SENATOR LAUTENBERG IS CHAIRMAN OF THE PANEL'S SUPERFUND SUBCOMMITTEE SENATORS CHAFFEE AND DURENBERGER ARE THE RANKING REPUBLICANS ON THE TWO PANELS THE LAWMAKERS IN THEIR LETTER DIDN'T DISCUSS SUBSTANTIVE DETAILS OF THE SUPERFUND PROPOSAL NOR DID SENATE ENVIRONMENT COMMITTEE STAFFERS WHEN THEY MET YESTERDAY ON CAPITOL HILL WITH OFFICIALS FROM THE WHITE HOUSE AND THE ENVIRONMENTAL PROTECTION AGENCY BUT BOTH THE SENATORS AND THE CONGRESSIONAL AIDES URGED THE ADMINISTRATION TO INCORPORATE INTO ITS SUPERFUND PROPOSAL THE RECOMMENDATIONS OF A PRIVATE SECTOR PANEL OF INDUSTRY REPRESENTATIVES AND ENVIRONMENTALISTS THOSE RECOMMENDATIONS ISSUED UNDER THE AUSPICES OF THE WASHINGTON BASED NONPROFIT KEYSTONE CENTER AND THE VERMONT LAW SCHOOL HAVE BEEN HEAVILY TOUTED BY ENVIRONMENTALISTS BECAUSE THEY CALL FOR CLEANUP STANDARDS THAT ARE MORE RIGOROUS THAN THOSE EMBODIED IN THE ADMINISTRATION'S SUPERFUND PROPOSAL VICE PRESIDENT GORE WHO RECENTLY REVIEWED THE INTERAGENCY SUPERFUND PROPOSAL HAS ALSO DIRECTED THE WHITE HOUSE STAFF AND THE E. P. A. TO INCORPORATE MORE OF THE KEYSTONE CENTER'S IDEAS INTO THE PLAN ACCORDING TO AN ADMINISTRATION OFFICIAL MR. GORE SAID HE WAS PARTICULARLY DISPLEASED THAT THE ADMINISTRATION PLAN INCLUDED COST AMONG THE FACTORS ON WHICH A NATIONAL CLEANUP STANDARD FOR SUPERFUND SITES WOULD BE BASED MR. GORE THE OFFICIAL SAID FAVORS INCORPORATING COST AS A CONSIDERATION ONLY IN DETERMINING HOW TO CLEAN UP INDIVIDUAL SITES KATHLEEN MCGINTY DIRECTOR OF THE WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY DENIED THAT MR. GORE HAS FOCUSED ON ANY ONE ASPECT OF THE PLAN SHE SAID THE ADMINISTRATION HOPES TO SEND ITS SUPERFUND PROPOSAL TO CONGRESS WITHIN TWO WEEKS THE FIRST ANNUAL MEETING OF VISTA PROPERTIES INCORPORATED HERE TODAY ISN'T LIKELY TO BE A FESTIVE AFFAIR THE COMPANY IS LOSING MONEY ITS STOCK IS TRADING FOR WELL UNDER ONE DOLLAR A SHARE AND IT HAS A MOUNTAIN OF DEBT STILL VISTA OFFICERS SAY THERE IS REASON FOR HOPE THE FATE OF THE DALLAS COMPANY RESTS ON THE OUTCOME OF NEGOTIATIONS WITH HOLDERS OF ONE HUNDRED THIRTY MILLION DOLLARS IN THIRTEEN AND THREE QUARTERS PERCENT SENIOR SECURED NOTES QUOTE WE'RE TRYING TO RESTRUCTURE THIS COMPANY QUOTE SAYS CHIEF EXECUTIVE OFFICER RAYMOND GARFIELD JUNIOR WE'RE TRYING TO GIVE IT SOME SHOT AT THE FUTURE VISTA PREVIOUSLY KNOWN AS LOMAS REALTY U. S. A. IS ONE OF THE LAST VESTIGES OF THE OLD LOMAS FINANCIAL CORPORATION A MORTGAGE BANKER THAT ENTERED BANKRUPTCY LAW PROCEEDINGS IN NINETEEN EIGHTY NINE IN THE WAKE OF THE TEXAS REAL ESTATE BUST BUT WHILE THE REORGANIZATION CLEANED UP MUCH OF THE LOMAS MESS THE PROCESS SWEPT MANY OF LOMAS'S TROUBLES INTO VISTA IT LEFT THE NEW COMPANY WITH HEAVY DEBT TIGHT OPERATING RESTRICTIONS AND JUST ONE TYPE OF ASSET SIX THOUSAND SEVEN HUNDRED ACRES OF LAND THREE QUARTERS OF VISTA'S HOLDINGS ARE IN TEXAS CITIES THE COMPANY'S CHARTER INTENDED BY DRAFTERS OF THE BANKRUPTCY PLAN TO KEEP IT OUT OF RENEWED TROUBLE ALLOWS VISTA ONLY TO LIQUIDATE ITS LAND DURING THE BANKRUPTCY PROCEEDINGS THE TOTAL LIQUIDATION VALUE OF VISTA'S PROPERTY WAS ESTIMATED AT FORTY FIVE MILLION DOLLARS TO SEVENTY THREE MILLION DOLLARS BUT THE SENIOR NOTES ISSUED TO SETTLE CLAIMS OF LOMAS CREDITORS ARE A GROWING BURDEN BECAUSE VISTA HAS PAID INTEREST BY DISTRIBUTING MORE NOTES SOMETHING IT IS PERMITTED TO DO IF CONDITIONS IN THE REAL ESTATE MARKET PREVENT IT FROM PAYING CASH THE PRINCIPAL TOTALED ONE HUNDRED SIXTY NINE POINT FIVE MILLION DOLLARS ON DECEMBER THIRTY FIRST AND BECAUSE THE COMPANY IS ISSUING NEW NOTES TO PAY INTEREST DUE EVERY SIX MONTHS THE DEBT IS EXPECTED TO BALLOON TO TWO HUNDRED FIFTY THREE MILLION DOLLARS BY OCTOBER NINETEEN NINETY SIX WHEN VISTA MUST START MAKING CASH PAYMENTS THAT MEANS THAT EVEN IF VISTA SOLD ALL OF THE PROPERTY IT OWNS AT THE HIGH END OF THE PRICE RANGE IT COULDN'T EVEN PAY OFF HALF ITS DEBT AND THOSE NUMBERS DON'T INCLUDE THE ESTIMATED FIFTEEN MILLION DOLLAR ANNUAL COST OF RUNNING THE COMPANY PAYING TAXES AND MANAGING THE PROPERTIES I'VE BEEN VERY FRANK IN SAYING THAT THE CAPITAL STRUCTURE HANDED TO US IN BANKRUPTCY IS PROBLEMATIC MR. GARFIELD SAYS IT DOES NOT WORK IN THE FISCAL YEAR ENDED LAST JUNE THIRTIETH VISTA HAD A LOSS OF THIRTY TWO POINT FIVE MILLION DOLLARS OR SIX DOLLARS AND FIFTY CENTS A SHARE FOR THE FIRST QUARTER ENDED SEPTEMBER THIRTIETH THE COMPANY REPORTED A NET LOSS OF NINE POINT THREE MILLION DOLLARS ON REVENUE OF TWO HUNDRED SEVENTY THREE THOUSAND DOLLARS NOW VISTA HOPES TO RESOLVE ITS PROBLEMS BY MOVING INTO THE SAME BUSINESSES THAT GOT THE OLD LOMAS INTO TROUBLE IN THE FIRST PLACE REAL ESTATE INVESTMENT AND DEVELOPMENT ONE OF THE BENEFITS OF NEW MANAGEMENT IS THAT WE WEREN'T AROUND WHEN MOST OF THESE INVESTMENTS WERE MADE AND MOST OF THE MONEY WAS LOST MR. GARFIELD SAYS WE'VE GOT NEW MANAGEMENT THAT WAS RECRUITED FROM THE OUTSIDE THAT WE BELIEVE EVERYONE HAS CONFIDENCE IN VISTA OFFICIALS AND NOTEHOLDERS WON'T DISCUSS THEIR TALKS IN ANY DETAIL BUT ACCORDING TO THE COMPANY'S ANNUAL REPORT VISTA WANTS TO TAKE PART IN REAL ESTATE JOINT VENTURES BUY LAND NEAR ITS PROPERTIES PROVIDE PORTFOLIO MANAGEMENT AND REAL ESTATE CONSULTING SERVICES AND DEVELOP AND SELL REAL ESTATE FOR THIRD PARTIES IF THE DEBT ISN'T RESTRUCTURED AND THE COMPANY ISN'T ALLOWED TO DO MORE THAN SELL ITS HOLDINGS MR. GARFIELD SAYS VISTA PROBABLY WILL DEFAULT ON THE NOTES AND BE THRUST BACK INTO BANKRUPTCY COURT ONCE THE FIRST CASH PAYMENTS ON ITS DEBT ARE DUE THE CHAIRMAN OF A COMMITTEE REPRESENTING THE NOTEHOLDERS ARNIE ESPE AN INVESTMENT MANAGER WITH METROPOLITAN LIFE INSURANCE COMPANY OF NEW YORK DECLINES TO COMMENT BUT ANALYSTS SAY NOTEHOLDERS MAY HAVE LITTLE CHOICE BUT TO RENEGOTIATE QUOTE THE BONDHOLDERS MAY SAY THE HELL WITH YOU WE WANT WHAT'S LEFT QUOTE SAYS BRUCE PAPARELLA RESEARCH DIRECTOR WITH CARR SECURITIES CORPORATION IN NEW YORK A MARKET MAKER FOR VISTA'S STOCK BUT IT ISN'T VERY MUCH MEANWHILE ALTHOUGH VISTA'S CHARTER IS LIMITING THE COMPANY HASN'T BEEN IDLE WHILE MUCH OF ITS PROPERTY IS DIFFICULT TO SELL MANY PROPERTIES ARE IN DEBT SADDLED TAXING DISTRICTS THE COMPANY HAS GOTTEN RID OF ABOUT ONE THOUSAND ONE HUNDRED ACRES OR EIGHTEEN POINT EIGHT MILLION DOLLARS WORTH OF PROPERTY SINCE EMERGING FROM THE BANKRUPTCY REORGANIZATION IN JANUARY NINETEEN NINETY TWO VISTA ALSO NEGOTIATED WITH ONE THOUSAND FOUR HUNDRED TAXING DISTRICTS TO REDUCE THE TAXABLE VALUE OF ITS PROPERTIES BY MORE THAN FIFTY PERCENT MOREOVER DESPITE ITS TROUBLES VISTA IS FAR FROM LIVING LEAN MR. GARFIELD COLLECTS A THREE HUNDRED THOUSAND DOLLAR ANNUAL SALARY AN AMOUNT GREATER THAN THE COMPANY'S REVENUE IN THE SEPTEMBER THIRTIETH QUARTER AND VISTA'S OUTSIDE DIRECTORS RECEIVE ANNUAL RETAINERS OF THIRTY SIX THOUSAND DOLLARS PLUS ONE THOUSAND FIVE HUNDRED DOLLARS A MEETING AND RETIREMENT BENEFITS THIRTY SIX THOUSAND DOLLARS TO BE A DIRECTOR IS A LOT SAYS MAX HOLMES DIRECTOR OF DISTRESSED AND BANKRUPT RESEARCH AT SALOMON BROTHERS INCORPORATED IN NEW YORK THAT'S THE KIND OF RANGE FOR A DIRECTOR OF A. T. AND T. OR SOMETHING VISTA OFFICIALS SAY BOARD MEMBERS' COMPENSATION WAS APPROVED BY CREDITORS DURING THE BANKRUPTCY REORGANIZATION IN ADDITION SAYS MR. GARFIELD BOARD AND STAFF MEMBERS AREN'T ELIGIBLE FOR STOCK OPTIONS ALTHOUGH VISTA STOCK IS ALMOST WORTHLESS ANYWAY AND THE COMPENSATION IS NECESSARY TO ATTRACT INDIVIDUALS OF THE CALIBER NECESSARY TO TRY TO WORK THIS COMPANY OUT VISTA'S STOCKHOLDERS HAVEN'T BEEN AS LUCKY THE COMPANY'S STOCK IN PINK SHEETS TRADING OF STOCKS THAT AREN'T TRADED ON ANY EXCHANGE OR ON THE NASDAQ STOCK MARKET WENT FOR AS HIGH AS ONE DOLLAR AND FIFTY CENTS A SHARE IN LATE NINETEEN NINETY TWO CARR SECURITIES SAYS BUT BY THE NINETEEN NINETY THREE THIRD QUARTER IT PLUMMETED TO A PENNY A SHARE THE PRICE HAS REBOUNDED RECENTLY TO A RANGE OF TWELVE POINT FIVE TO THIRTY SEVEN POINT FIVE CENTS ANALYSTS SAY MANY OF THE ORIGINAL STOCKHOLDERS AND NOTEHOLDERS HAVE SOLD THEIR VISTA SECURITIES AS FOR THE NEW OWNERS OF THE STOCK AND DEBT ANALYSTS SAY THEIR INVESTMENT WAS SMALL TO BEGIN WITH QUOTE THE RISKS FOR THEM WERE NOT INCREDIBLY HIGH QUOTE MR. PAPARELLA SAYS BUT IF VISTA RESTRUCTURES AND IS GIVEN TIME QUOTE THE REWARDS COULD BE ASTRONOMICAL QUOTE A LOOK AT SOME OF VISTA PROPERTIES INCORPORATED'S LARGEST REAL ESTATE HOLDINGS IN TEXAS AS OF SEPTEMBER THIRTIETH NINETEEN NINETY THREE ONE LITTLE NOTICED SIDESHOW TO THE BIDDING WAR FOR PARAMOUNT COMMUNICATIONS INCORPORATED HAS BEEN A RECENT SPATE OF INSIDER SELLING AMONG KEY EXECUTIVES AT THE ENTERTAINMENT AND PUBLISHING GIANT THE SELLING HAS MOSTLY INVOLVED THE EXERCISE OF OPTIONS GRANTED TO THE EXECUTIVES RECENT FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW BUT IT BEGAN AROUND THE TIME THAT IT BECAME APPARENT THAT PARAMOUNT'S STRATEGY OF PURSUING A FRIENDLY MERGER WITH VIACOM INCORPORATED WHILE IGNORING A HOSTILE BID BY Q. V. C. NETWORK INCORPORATED MIGHT BE OVERTURNED IN COURT NONE OF THE SALES CAUGHT THE PEAK EIGHTY THREE DOLLAR CLOSING SHARE PRICE ATTAINED BY PARAMOUNT'S STOCK ON NOVEMBER TWELFTH AMID THE PROTRACTED CONTINUING TAKEOVER BATTLE PARAMOUNT STOCK FETCHED AROUND FIFTY FIVE DOLLARS TO SIXTY DOLLARS A SHARE BEFORE IT AND VIACOM ANNOUNCED A FRIENDLY MERGER SEPTEMBER INSIDERS REFRAINED FROM SELLING DURING THE FIRST TWO MONTHS OF THE STRUGGLE WHICH BEGAN IN EARNEST WHEN Q. V. C. LAUNCHED ITS HOSTILE BID SEPTEMBER TWENTIETH INSTEAD THE SALES BEGAN FOLLOWING THE FIRST HEARING IN DELAWARE COURT NOVEMBER SIXTEENTH WHEN THE JUDGE PEPPERED VIACOM LAWYERS WITH TOUGH QUESTIONS THAT FIRST SIGNALED THAT THE PARAMOUNT VIACOM MERGER MIGHT BE DERAILED ON NOVEMBER TWENTY FOURTH IN THE FIRST OF TWO DECISIONS THE COURTS EFFECTIVELY SIDETRACKED THE FRIENDLY MERGER AND FORCED PARAMOUNT TO CONSIDER A HOSTILE BID BY Q. V. C. TWO OTHER FACTORS FUELED A DROPOFF IN PARAMOUNT'S STOCK PRICE AT THE TIME OF THREE INSIDERS' SALES BETWEEN NOVEMBER SIXTEENTH AND NOVEMBER TWENTY THIRD INVESTORS WERE DISAPPOINTED AT AN OFFER Q. V. C. MADE NOVEMBER TWELFTH WHICH PARAMOUNT REJECTED NOVEMBER FIFTEENTH AS TOO CONDITIONAL AND PARAMOUNT WAS REMOVED FROM THE STANDARD AND POOR'S FIVE HUNDRED INDEX TRIGGERING SELLING BY STOCK INDEX FUNDS A PARAMOUNT SPOKESMAN SAID THAT THE SALES DIDN'T REFLECT INSIDERS' PERSPECTIVES ON THE OUTCOME OF THE BIDDING WAR BETWEEN Q. V. C. NETWORK AND VIACOM FOR THE NEW YORK BASED COMPANY RATHER HE SAID THE SALES WERE FOR STRICTLY PERSONAL REASONS HAVING TO DO WITH QUOTE YEAR END TAX PLANNING AND ALSO TO PAY FOR THE EXERCISE OF OPTIONS QUOTE JEFF LOGSDON AN ANALYST WITH SEIDLER COMPANY LOS ANGELES SAID THAT EARLY ON WHEN IT LOOKED AS IF VIACOM AND PARAMOUNT WOULD MERGE MANAGEMENT AT PARAMOUNT INDICATED THAT ALL OF THEIR OPTIONS WERE GOING TO BE ROLLING INTO THE NEW COMPANY AND THAT NO ONE WOULD BE DISPOSING OF THEIR POSITIONS NOW THAT THINKING HAS LONG SINCE GONE BY THE WAYSIDE AS THE PRICE HAS MOVED UP WHO WOULDN'T SELL HE ASKS A SIGNIFICANT AMOUNT OF STOCK WILL COME OUT AFTER THE TRANSACTION CLOSES BECAUSE A NUMBER OF ARBITRAGERS HAVE BEEN THE MAIN ACCUMULATORS OF PARAMOUNT STOCK OVER THE PAST THREE MONTHS BY OUR ESTIMATES THE ARBS OWN OVER FIFTY PERCENT OF THIS COMPANY SOME OUTSIDE OBSERVERS SAID THE SALES ALTHOUGH OF MINOR OVERALL SIGNIFICANCE IN THE CONTEXT OF THE CORPORATE SLUGFEST BETWEEN VIACOM AND Q. V. C. WERE WORTH NOTING QUOTE THE DEAL TO ACQUIRE THE COMPANY MAY BE A LOCK BUT THE VALUE CERTAINLY ISN'T QUOTE SAYS BOB GABELE PRESIDENT OF C. D. A. SLASH INVESTNET A FORT LAUDERDALE FLORIDA FIRM THAT ANALYZES DATA FILED WITH THE S. E. C. BY CASHING IN NOW THESE INSIDERS ARE PROBABLY HEDGING THEIR BETS IN THE EVENT THAT THE ULTIMATE VALUE TURNS OUT TO BE LOWER THAN EARLIER EXPECTATIONS ED HATCH MEDIA AND ENTERTAINMENT ANALYST WITH U. B. S. SECURITIES SAYS THE DISPOSALS SEEM TO INDICATE AT THE VERY LEAST NO EXPECTATIONS OF A SUBSTANTIALLY HIGHER BID INSIDER SELLING AT THESE LEVELS MAY INDICATE A BELIEF THAT NEITHER VIACOM OR Q. V. C. WILL MAKE A MATERIAL INCREASE FROM THEIR CURRENT BIDS RONALD NELSON PARAMOUNT'S CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT DISPOSED OF THE LARGEST CLUTCH OF SHARES SELLING SIXTY THOUSAND AT AN AVERAGE SEVENTY SIX DOLLARS AND FIFTY CENTS APIECE ON NOVEMBER TWENTY THIRD THE DATA SHOW MR. NELSON STILL HOLDS TWO HUNDRED TEN THOUSAND NINE HUNDRED SIX SHARES PLUS CURRENTLY EXERCISABLE OPTIONS TO ACQUIRE AN ADDITIONAL FORTY SEVEN THOUSAND FIVE HUNDRED FIFTY SHARES LAWRENCE LEVINSON SENIOR VICE PRESIDENT FOR GOVERNMENT RELATIONS SOLD THIRTY EIGHT THOUSAND NINE HUNDRED FIFTY SHARES THE SECOND LARGEST CLUSTER AT ABOUT SEVENTY EIGHT DOLLARS AND THIRTEEN CENTS EACH ON NOVEMBER EIGHTEENTH S. E. C. DATA SHOW FOLLOWING THAT SALE MR. LEVINSON HOLDS TWENTY THOUSAND ONE HUNDRED NINE SHARES BUT NO OPTIONS ACCORDING TO C. D. A. SLASH INVESTNET RUDOLPH HERTLEIN SENIOR VICE PRESIDENT OF INTERNAL AUDITS AND SPECIAL PROJECTS SOLD SIXTEEN THOUSAND SEVEN HUNDRED FIFTY SHARES BETWEEN NOVEMBER SIXTEENTH AND NOVEMBER NINETEENTH AT PRICES AVERAGING SEVENTY EIGHT DOLLARS A SHARE THAT SALE REPRESENTED THE DISPOSAL OF ALL OF HIS CURRENTLY VESTED OPTIONS THE PARAMOUNT EXECUTIVE STILL HAS SEVEN THOUSAND EIGHT HUNDRED TEN SHARES AS WELL AS OPTIONS TO ACQUIRE AN ADDITIONAL FIFTEEN THOUSAND SHARES BEGINNING SEPTEMBER NINETEEN NINETY FIVE STANLEY JAFFE THE COMPANY'S PRESIDENT CHIEF OPERATING OFFICER AND A PARAMOUNT DIRECTOR HAD REGISTERED WITH THE S. E. C. HIS INTENTION TO SELL TWO HUNDRED THIRTY THREE THOUSAND THREE HUNDRED THIRTY TWO SHARES ON OR ABOUT NOVEMBER TWENTY SIXTH THOSE SHARES REPRESENTED ALL OF HIS EXERCISABLE OPTIONS BUT ACCORDING TO THE COMPANY'S SPOKESMAN MR. JAFFE DECIDED NOT TO SELL SAMUEL SILBERMAN AN OUTSIDE DIRECTOR ALSO NUMBERED AMONG THE SELLERS BUT THROUGH INDIRECTLY HELD SHARES VARIOUS TRUSTS WHERE HE SERVES AS TRUSTEE SOLD NINE THOUSAND SHARES IN NOVEMBER AND ANOTHER NINE THOUSAND NINE HUNDRED SIXTEEN SHARES IN LATE DECEMBER AT ROUGHLY SEVENTY NINE DOLLARS TO EIGHTY ONE DOLLARS A SHARE HIS WIFE SOLD SOME SIX THOUSAND SIXTY TWO SHARES AT AROUND EIGHTY ONE DOLLARS AND TWENTY FIVE CENTS THE DATA SHOW THE PARAMOUNT DIRECTOR HAS BEEN WINDING DOWN HIS DIRECT AND INDIRECT HOLDINGS WHICH STOOD AT A COMBINED SEVENTY FIVE THOUSAND ONE HUNDRED TWENTY EIGHT SHARES IN LATE OCTOBER THROUGH A SERIES OF GIFTS AND OPEN MARKET SALES THOSE HOLDINGS HAVE BEEN WHITTLED DOWN TO SIX THOUSAND ONE HUNDRED FORTY EIGHT SHARES ACCORDING TO C. D. A. SLASH INVESTNET JOHN F. JOHNSON PRESIDENT OF THE LAMALIE AMROP INTERNATIONAL UNIT WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN AT THIS FRENCH BASED EXECUTIVE SEARCH FIRM MR. JOHNSON FIFTY ONE YEARS OLD THE FIRST AMERICAN TO HOLD THAT POSITION SUCCEEDS GIANNI DELL'ORTO WHO HAS COMPLETED HIS TWO YEAR TERM AS CHAIRMAN OF THE COMPANY MR. DELL'ORTO FIFTY FOUR CONTINUES AS SENIOR PARTNER OF THE T. M. C. AMROP INTERNATIONAL UNIT BASED IN MILAN ITALY SMITH BARNEY SHEARSON INCORPORATED AND REMSEN PARTNERS LIMITED A PRIVATELY HELD REAL ESTATE FINANCING GROUP SAID THEY FORMED A STRATEGIC ALLIANCE TO PROVIDE LONG TERM FINANCING FOR COMMERCIAL REAL ESTATE UNDER THE AGREEMENT NEW YORK BASED REMSEN WILL ORIGINATE COMMERCIAL MORTGAGE LOANS WHICH SMITH BARNEY SHEARSON WILL THEN FUND AND EVENTUALLY POOL AND SELL AS MORTGAGE BACKED SECURITIES SMITH BARNEY A SUBSIDIARY OF TRAVELERS INCORPORATED SAID IT HOPES THE MOVE WILL BOOST ITS COMMERCIAL MORTGAGE BACKED SECURITIES BUSINESS THE BROKERAGE UNIT AND REMSEN SAID THEY EXPECT THE ALLIANCE TO GENERATE MORE THAN ONE BILLION DOLLARS IN FINANCINGS THIS YEAR NATO'S LEADERS REAFFIRMED A BOSNIA AIR STRIKE THREAT ENDING A TWO DAY SUMMIT WESTERN LEADERS ANNOUNCED THEIR WILLINGNESS TO ORDER BOMBING RAIDS AGAINST BOSNIAN SERBS BUT DOUBTS LINGERED ABOUT THE ALLIANCE'S WILL TO TAKE ACTION UNDER INTENSE PRESSURE FOR A STRONGER RESPONSE TO THE WAR IN BOSNIA THE NATO ALLIES RAISED THE PROSPECT OF AIR STRIKES AGAINST SERBS BLOCKING THE EVACUATION OF CANADIAN PEACEKEEPERS IN SREBRENICA AND PREVENTING THE OPENING OF AN AIRPORT IN TUZLA HOWEVER THE NATO STATEMENT FELL SHORT OF THE EXPLICIT THREAT OF IMMEDIATE AIR STRIKES THAT BRITAIN AND FRANCE HAD SOUGHT BOSNIAN FACTIONS CLASHED IN SARAJEVO KILLING NINE PEOPLE AND HALTING RELIEF FLIGHTS INTO THE CITY JUST HOURS AFTER THEY HAD RESUMED MUSLIM CROAT FIGHTING RAGED IN CENTRAL BOSNIA CLINTON ARRIVED IN PRAGUE AND WON THE SUPPORT OF CZECH PRESIDENT HAVEL FOR A U. S. INSPIRED PLAN TO TIGHTEN EASTERN EUROPE'S TIES WITH NATO THOUGH THE PLAN DOESN'T GRANT THE FULL NATO MEMBERSHIP THAT FORMER WARSAW PACT NATIONS WANT HAVEL SAID THE CZECH REPUBLIC WAS QUOTE READY TO IMPLEMENT IT IMMEDIATELY QUOTE A DENVER ACCOUNTING FIRM HAS REFUSED TO VOUCH FOR THE ACCURACY OF ITS NINETEEN NINETY TWO FINDINGS CONCERNING THE CLINTONS' WHITEWATER VENTURE AND THE HEAD OF THE FIRM HAS LINKS TO A LONGTIME CLINTON FRIEND THE PRESIDENT SAID HE IS RECONSIDERING HIS OPPOSITION TO HAVING A SPECIAL COUNSEL NAMED TO INVESTIGATE WHITEWATER ORGANIZED LABOR WILL WAGE AN ALL OUT EFFORT TO WIN PASSAGE OF CLINTON'S HEALTH CARE BILL THE A. F. L. C. I. O.'S KIRKLAND SAID I KNOW OF NO ISSUE THAT IS MORE IMPORTANT RIGHT NOW TO THE NATION'S FUTURE HE TOLD REPORTERS THE A. F. L. C. I. O.'S FIGHT AGAINST NAFTA HAD LEFT IN DOUBT THE DEGREE TO WHICH UNIONS WOULD BACK THE HEALTH PLAN RUSSIA'S YELTSIN OPENED A NEW PARLIAMENTARY SESSION WITH A PLEA FOR COOPERATION AND COMPROMISE BUT WRANGLING ERUPTED ALMOST IMMEDIATELY BETWEEN COMMUNIST AND NATIONALIST LAWMAKERS MEANWHILE PRESIDENT CLINTON IS DUE TO ARRIVE IN MOSCOW TONIGHT FOR TALKS WITH THE RUSSIAN PRESIDENT MOSCOW AGREED TO ACCEPT WASHINGTON'S ASSISTANCE IN DESTROYING SOME FORTY FOUR THOUSAND TONS OF CHEMICAL WEAPONS MEMBERS OF A HOUSE ARMED SERVICES COMMITTEE DELEGATION ANNOUNCED THE AGREEMENT AMOUNTS TO A PLEDGE BY THE RUSSIAN GOVERNMENT TO ACCELERATE THE DESTRUCTION OF ITS MASSIVE CHEMICAL WEAPONS STOCKPILE A MEXICAN PRESIDENTIAL AIDE CALLED FOR TALKS ON ENDING AN UPRISING IN SOUTHERN MEXICO REBELS SAID THEY WOULD NEGOTIATE IF THE MILITARY STOPS BOMBING WITHDRAWS ITS TROOPS AND RECOGNIZES THEIR MOVEMENT OTHERWISE THEY VOWED TO ADVANCE TO THE CAPITAL THE P. L. O. HAS DROPPED ITS DEMAND FOR A ONE HUNDRED SIXTEEN SQUARE MILE PALESTINIAN SELF RULE AREA AROUND THE WEST BANK TOWN OF JERICHO AND IS READY TO ACCEPT A SMALLER ENCLAVE ACCORDING TO ISRAELI AND P. L. O. OFFICIALS BUT THEY SAID THE TWO SIDES WHICH HAVE BEEN MEETING IN THE EGYPTIAN RESORT OF TABA HADN'T YET AGREED ON THE SIZE OF THE AREA THE SUPREME COURT MADE IT HARDER FOR PROSECUTORS TO PROVE CASES ALLEGING A COMMON TYPE OF MONEY LAUNDERING IN A SETBACK FOR ANTIDRUG EFFORTS THE COURT SAID PROSECUTORS MUST SHOW DEFENDANTS KNEW THEY COMMITTED A CRIME IN ORDER TO CONVICT THEM OF EVADING A REQUIREMENT TO REPORT BIG CASH TRANSACTIONS THE U. S. MILITARY IS NEARING AGREEMENT ON A POLICY THAT WILL ALLOW WOMEN TO SERVE IN SOME GROUND COMBAT UNITS A PENTAGON SPOKESWOMAN SAID THAT UNDER THE GUIDELINES FEMALE TROOPS IN THE ARMY AND MARINE CORPS WOULD BE BARRED FROM FRONT LINE INFANTRY BUT THAT WOMEN COULD JOIN ANTIAIRCRAFT AND ARTILLERY UNITS FOUR SENATORS URGED CLINTON TO ALTER THE WHITE HOUSE'S ALL BUT COMPLETE PROPOSAL FOR CLEANING UP ABANDONED HAZARDOUS WASTE SITES THE FOUR LAWMAKERS WHO ARE LIKELY TO PLAY A ROLE IN REWRITING THE SUPERFUND LAW ARGUED FOR TOUGHER CLEANUP REQUIREMENTS THAN CONTEMPLATED IN AN INTERAGENCY PLAN LOCAL RESIDENTS WOULD BE GIVEN MORE POWER TO SHAPE GRAZING RULES UNDER A PLAN THE ADMINISTRATION IS CONSIDERING THE INTERIOR DEPARTMENT SAID A SET OF DETAILED PRESERVATION STANDARDS PROPOSED IN AUGUST WILL BE REDUCED TO BROAD MANDATES PEPSICO INCORPORATED AGREED TO SELL ITS U. S. DISTRIBUTION RIGHTS FOR STOLICHNAYA VODKA TO GRAND METROPOLITAN P. L. C. IN A SURPRISING MOVE LIKELY TO STEP UP COMPETITION IN THE U. S. VODKA MARKET THE ACTION FOLLOWS A YEAR AND A HALF LONG INVESTIGATION BY THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS OF THE CLOSE TIES BETWEEN PEPSICO AND THE SMALL WHITE PLAINS N. Y. FIRM THROUGH WHICH IT DISTRIBUTED THE STOLICHNAYA MONSIEUR HENRI WINES LIMITED THE PROBE FOLLOWED A PAGE ONE ARTICLE IN THE WALL STREET JOURNAL REPORTING THAT CORPORATE DOCUMENTS AND COMPANY INSIDERS HAD SUGGESTED THAT PEPSI HAD A HEAVY HAND IN M. HENRI'S OPERATIONS PEPSI IS PROHIBITED IN SOME PARTS OF THE COUNTRY FROM BOTH DISTRIBUTING LIQUOR AND SELLING IT AS IT DOES THROUGH SOME OF ITS RESTAURANTS THAT INVESTIGATION IS COMING TO A CONCLUSION NOW ACCORDING TO PEOPLE FAMILIAR WITH THE PROBE WITH M. HENRI AGREEING TO PAY BETWEEN ONE HUNDRED THOUSAND DOLLARS AND TWO HUNDRED THOUSAND DOLLARS TO SETTLE THE CASE THE SETTLEMENT STILL HAS TO BE COMPLETED THEY SAID ONE OF THOSE INDIVIDUALS SAID THE U. S. AGENCY HAD DETERMINED THAT M. HENRI HAD VIOLATED ITS IMPORT PERMIT BY FAILING TO DISCLOSE THAT PEPSI HAD EXERCISED CONTROL OVER ITS OPERATIONS THAT COULD HAVE FORCED THE SUSPENSION OF THE PERMIT OR PROSECUTION OF M. HENRI ACCORDING TO THE INDIVIDUALS WILLIAM HOBER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF M. HENRI CONFIRMED THAT A SETTLEMENT OF THE INVESTIGATION WAS NEAR BUT WOULDN'T COMMENT SPECIFICALLY A PEPSICO SPOKESMAN WOULDN'T COMMENT ON THE INVESTIGATION BUT SAID THE SALE OF DISTRIBUTION RIGHTS TO GRAND MET OF LONDON HAD NOTHING TO DO WITH THE INQUIRY HE SAID THE ACTION WAS TAKEN TO TRY TO HELP BUILD STOLICHNAYA SALES PEPSI DIDN'T DISCLOSE THE AMOUNT OF THE DEAL PEPSI BASED IN PURCHASE N. Y. WILL CONTINUE TO HOLD THE RIGHTS TO THE STOLICHNAYA TRADEMARK IN THE U. S. UNTIL ITS AGREEMENT WITH THE RUSSIAN MANUFACTURERS OF THE VODKA EXPIRES IN TWO THOUSAND AS IT DID UNDER ITS RELATIONSHIP WITH M. HENRI PEPSI SAID THE NEW DISTRIBUTOR ARRANGEMENT WON'T HAVE AN APPRECIABLE EFFECT ON ITS BOTTOM LINE IN THE NEAR TERM PEPSI DOESN'T DISCLOSE VODKA REVENUE BUT THE NEW ARRANGEMENT MOST CERTAINLY WILL STEP UP VODKA WARS IN THE U. S. ACCORDING TO INDUSTRY EXPERTS FOR NEARLY TWENTY YEARS PEPSI HAD BARTERED ITS COLA IN THE FORMER SOVIET UNION IN PROPORTION TO THE AMOUNTS OF VODKA IT IMPORTED THAT COUNTERTRADE ARRANGEMENT WHICH KEPT COKE AT BAY IN THAT MARKET UNTIL RECENTLY WAS REPLACED WITH CASH SALES IN THE PAST YEAR OR SO AS THE RUSSIAN COMPANIES WERE PRIVATIZED THAT LEFT PEPSI WITH A BRAND WITH PROBLEMS STOLICHNAYA DISTRIBUTORS IN THE U. S. SAY THEY OFTEN HAD A HARD TIME GETTING THE PRODUCT IN RECENT YEARS AS TURMOIL IN THE FORMER SOVIET UNION DELAYED PRODUCTION AND CUT OFF PRODUCT AND PACKAGING SUPPLIES STOLI WHICH USED TO BE THE NUMBER ONE VODKA IMPORT IN THE U. S. NOW RANKS SECOND TO ITS COMPETITOR ABSOLUT AFTER THE SUPPLY PROBLEMS ANTI SOVIET FEELINGS AND LACKLUSTER MARKETING HURT THE BRAND STOLI GREW ONE POINT FIVE PERCENT LAST YEAR TO HOLD ABOUT TWENTY ONE PERCENT OF THE MARKET ACCORDING TO PRELIMINARY ESTIMATES FROM IMPACT A SPIRITS INDUSTRY NEWSLETTER ABSOLUT POSTED A HEALTHY SIX PERCENT GROWTH RATE LAST YEAR TO HOLD SIXTY THREE PERCENT OF THE MARKET ACCORDING TO IMPACT ESTIMATES INDUSTRY EXPERTS EXPECT GRAND MET'S ACQUISITION TO STEP UP COMPETITION IN THE U. S. VODKA MARKET THE MOVE COMES JUST FOUR MONTHS AFTER SEAGRAM COMPANY STUNNED THE LIQUOR WORLD BY SNATCHING AWAY FROM GRAND MET THE DISTRIBUTION RIGHTS FOR ABSOLUT VODKA QUOTE THIS OPENS A NEW ERA IN THE VODKA WARS QUOTE SAYS MARVIN SHANKEN PUBLISHER OF IMPACT WE ARE NOW GOING TO SEE TWO VERY SERIOUS PLAYERS GO HEAD TO HEAD GRAND MET'S ACQUISITION OF THE RUSSIAN VODKA ALSO SETTLES ONE OF THE LIQUOR INDUSTRY'S MOST CLOSELY WATCHED CAREER MOVES THE FATE OF MICHEL ROUX THE GRAND MET EXECUTIVE WHO USED WITTY ADVERTISEMENTS TO TRANSFORM ABSOLUT FROM AN OBSCURE SWEDISH BRAND INTO THE U. S.'S TOP SELLING IMPORTED VODKA MR. ROUX PRESIDENT OF GRAND MET'S CARILLON IMPORTERS UNIT WILL REMAIN WITH CARILLON AND OVERSEE GRAND MET'S MARKETING OF STOLICHNAYA GRAND MET'S ACQUISITION OF STOLICHNAYA MAY MAKE IT HARDER FOR SEAGRAM TO CAPITALIZE ON ITS NEW ABSOLUT BRAND LIQUOR EXPERTS SAY I WOULD NOT WANT TO HAVE THE JOB AT SEAGRAM OF RUNNING ABSOLUT RIGHT NOW SAYS JOEL WHITAKER EDITOR OF KANE'S BEVERAGE WEEK A NEWSLETTER IT INCREASES THE PRESSURES ON WHOMEVER IS RUNNING ABSOLUT TO MAINTAIN VOLUME AND MARGINS SEAGRAM DECLINED TO COMMENT UNDER GRAND MET STOLICHNAYA'S THREE POINT ONE MILLION DOLLAR AD BUDGET IS EXPECTED TO INCREASE SHARPLY TO BETTER COMPETE WITH ABSOLUT'S FIFTEEN MILLION DOLLAR AD BUDGET ABSOLUT IS ONE OF THE MOST HEAVILY ADVERTISED LIQUOR BRANDS ACCORDING TO COMPETITIVE MEDIA REPORTING WHILE MR. ROUX DECLINED TO DISCUSS HIS PLANS FOR STOLI YESTERDAY A GRAND METROPOLITAN SPOKESWOMAN SAID WE INTEND TO BUILD STOLICHNAYA INTO A FORMIDABLE COMPETITOR TOYS QUOTE R. QUOTE US INCORPORATED FLUSH WITH CASH FROM ITS THRIVING U. S. STORES SAID IT PLANS TO SPEND AS MUCH AS ONE BILLION DOLLARS BUYING BACK ITS SHARES OVER SEVERAL YEARS WHILE MOUNTING AN AGGRESSIVE EXPANSION DRIVE THE PARAMUS N. J. RETAILER SAID IT WILL OPEN ONE HUNDRED FIFTEEN NEW TOY STORES IN NINETEEN NINETY FOUR INCLUDING SEVENTY IN INTERNATIONAL MARKETS SUCH AS SPAIN GERMANY AND JAPAN THAT IT HAS TARGETED FOR ITS FASTEST GROWTH THE MOVES SIGNAL THAT THE RETAILER WHICH ALREADY SELLS TWENTY PERCENT OF ALL TOYS IN THE U. S. IS CONFIDENT THAT IT CAN GAIN MARKET SHARE PROFITABLY EVEN AS IT MOVES INTO NEW MARKETS OVERSEAS WHERE SELLING TOYS AT DISCOUNT PRICES AND IN WIDE ASSORTMENTS IS A RELATIVELY NEW CONCEPT CONCERNS ABOUT OVERSATURATION OF THE U. S. MARKET WHERE TOYS R. US DOMINATES WITH FIVE HUNDRED EIGHTY ONE TOY STORES HAVE HURT TOYS R. US STOCK IN THE PAST COUPLE YEARS ESPECIALLY AS THE COMPANY DIRECTED MORE ATTENTION TO NEW STORE FORMATS SUCH AS BOOKS R. US BUT MICHAEL GOLDSTEIN VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY THINKS THERE'S ROOM FOR ABOUT NINE HUNDRED STORES IT'S JUST A QUESTION OF FILLING IN THE JIGSAW PUZZLE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY TOYS R. US SHARES CLOSED AT THIRTY EIGHT DOLLARS AND SEVENTY FIVE CENTS UP FIFTY CENTS THIS IS A PRETTY CLEAR SIGNAL THAT THE COMPANY IS VERY BULLISH ON ITS FUTURE SAID SEAN MCGOWAN AN ANALYST FOR GERARD KLAUER MATTISON AND COMPANY AT THE CURRENT SHARE PRICE TOYS QUOTE R. QUOTE US COULD BUY BACK ABOUT TWENTY SIX MILLION SHARES OR ABOUT TWELVE PERCENT OF ITS SHARES OUTSTANDING THE LAST TIME THE COMPANY AUTHORIZED A SHARE REPURCHASE PROGRAM WAS FOUR YEARS AGO WHEN IT SET OUT TO BUY FIVE MILLION COMMON SHARES FUNDING FOR THE BUYBACK ANNOUNCED YESTERDAY WILL COME MOSTLY FROM PROFITS GENERATED BY THE CHAIN'S U. S. STORES SAID ROBERT NAKASONE PRESIDENT AND CHIEF OPERATING OFFICER DESPITE THE AGGRESSIVE EXPANSION PLANS IN NINETEEN NINETY FOUR TOYS R. US IS GENERATING SUBSTANTIAL EXCESS CASH FLOW THE COMPANY SAID IN A NEWS RELEASE THE COMPANY WHICH HAD ONE HUNDRED TWENTY TWO MILLION DOLLARS IN CASH AT THE END OF OCTOBER SAID IT WOULD UNDERTAKE THE BUYBACK OVER SEVERAL YEARS IT WASN'T MORE SPECIFIC TOYS R. US HAS YET TO REPURCHASE ABOUT THREE HUNDRED THOUSAND SHARES AUTHORIZED UNDER THE NINETEEN NINETY BUYBACK THE ONE BILLION DOLLAR SHARE REPURCHASE PROGRAM IS MORE AMBITIOUS THAN I HAD ANTICIPATED MR. MCGOWAN THE ANALYST SAID POLITICS ANALYSTS SAID TOYS R. US ELECTED TO SPEND ITS EXCESS CASH ON A BUYBACK PROGRAM RATHER THAN FUNDING NEW STORES WITH THE CASH PARTLY BECAUSE OF TAX BREAKS CURRENCY RISKS AND FOREIGN POLITICS QUOTE WHEN OPENING NEW STORES OVERSEAS TOYS QUOTE R. QUOTE US HAS A POLICY OF BORROWING MONEY IN COUNTRIES IN WHICH THEY OPEN NEW STORES QUOTE SAID JOSEPH RONNING AN ANALYST FOR BROWN BROTHERS HARRIMAN THEY GET TAX BREAKS AND THE MONEY IS ALL IN ONE PLACE WHICH IS A WISE THING TO DO ESPECIALLY IN LIGHT OF POLITICAL UNREST ASSOCIATED WITH SOME INTERNATIONAL MARKETS THE EXPANSION PLANNED FOR THIS YEAR WOULD SLIGHTLY EXCEED GROWTH IN NINETEEN NINETY THREE WHEN TOYS R. US OPENED ONE HUNDRED EIGHT TOY STORES FORTY ONE IN THE U. S. AND SIXTY SEVEN ABROAD THE COMPANY HAS TWO HUNDRED THIRTY FOUR STORES ABROAD WHERE IT SEES GREATER POTENTIAL FOR GROWTH THAN IN THE U. S. TOYS R. US SAID IT PLANS TO ACCELERATE ITS OVERSEAS EXPANSION BY ALLOWING ITS FIRST FRANCHISES WHICH WILL BE IN MIDEAST NATIONS INCLUDING THE UNITED ARAB EMIRATES QATAR BAHRAIN OMAN AND KUWAIT WITH CULTURAL DIFFERENCES AND VARIOUS LAWS PROHIBITING COMPLETE OWNERSHIP BY FOREIGN ENTITIES IN MANY COUNTRIES THE FRANCHISING CONCEPT WILL ALLOW US TO GET INTO COUNTRIES AND REGIONS OF THE WORLD THAT WE MAY NEVER HAVE CONSIDERED MR. NAKASONE SAID PARAMOUNT COMMUNICATIONS INCORPORATED'S BOARD TODAY IS EXPECTED TO STICK WITH ITS ENDORSEMENT OF THE NINE POINT EIGHT BILLION DOLLAR TAKEOVER BID BY Q. V. C. NETWORK INCORPORATED REJECTING VIACOM INCORPORATED'S RESTRUCTURED NINE POINT THREE BILLION DOLLAR OFFER AT A MEETING THIS AFTERNOON THE BOARD MAY ALSO ATTEMPT TO ENCOURAGE THE TWO CONTESTANTS TO MAKE THEIR BEST BIDS SOONER RATHER THAN LATER OR SEEK SOME OTHER WAY TO BRING THE SLOW MOVING BIDDING PROCESS TO A CLOSE SOME DIRECTORS HAVE BEEN DESCRIBED AS IMPATIENT OVER THE FACT THAT VIACOM EXTENDED THE BIDDING FOR TWO WEEKS BY BOOSTING THE CASH IN ITS OFFER WITHOUT INCREASING THE BID'S OVERALL VALUE SEPARATELY SHAREHOLDERS OF BLOCKBUSTER ENTERTAINMENT CORPORATION FILED FOUR LAWSUITS AGAINST THE COMPANY CHARGING THAT ITS PLANNED TAKEOVER BY VIACOM WOULD BENEFIT TOP EXECUTIVES AT THE EXPENSE OF OTHER INVESTORS UNDER THE PLAN VIACOM WOULD USE CASH FROM BLOCKBUSTER FOR ITS OFFER FOR PARAMOUNT THE COMPLAINTS FILED IN DELAWARE STATE COURT YESTERDAY ALLEGE THAT BLOCKBUSTER'S CHIEF EXECUTIVE OFFICER H. WAYNE HUIZENGA AND VIACOM'S CHIEF EXECUTIVE SUMNER REDSTONE ENGINEERED THE AGREEMENT FOR THEIR PERSONAL GAIN AND THAT CONTROL OF THE COMPANY IS BEING HANDED TO MR. REDSTONE WITHOUT ADEQUATELY COMPENSATING SHAREHOLDERS THE COMPLAINTS ALL MAKE SIMILAR CLAIMS THAT THE OFFICERS SHOULD HAVE SHOPPED THE COMPANY AROUND BEFORE MAKING A DEAL THAT BLOCKBUSTER IS BEING SWALLOWED BY A WEAKER DEBT LADEN COMPANY AND THAT MR. REDSTONE IS GRABBING CONTROL OF THE COMPANY FROM THE SHAREHOLDERS WITHOUT INVESTING HIS OWN MONEY VIACOM AND BLOCKBUSTER SAID THE COMPLAINTS ARE WITHOUT MERIT AND SHOULD BE DISMISSED SUCH LAWSUITS ARE COMMON IN ANY LARGE ACQUISITION BUT ANALYSTS NOTED THAT IF VIACOM DOESN'T WIN PARAMOUNT THE VALUE OF VIACOM'S STOCK WILL SKYROCKET FATTENING THE DEAL FOR BLOCKBUSTER SHAREHOLDERS QUOTE IF THE PARAMOUNT DEAL GOES AWAY THESE SUITS WILL ALL DISAPPEAR QUOTE SAID CRAIG BIBB ANALYST WITH PAINEWEBBER THEY'LL GET A NICE PRICE PHILIP DUFF THIRTY SIX YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS INVESTMENT BANKING COMPANY EFFECTIVE JANUARY THIRTY FIRST MR. DUFF FORMERLY A MANAGING DIRECTOR IN CHARGE OF MORGAN STANLEY'S FINANCIAL INSTITUTIONS GROUP WILL SUCCEED ALLEN ZERN FIFTY WHO IS RETIRING AFTER TWENTY EIGHT YEARS WITH THE COMPANY KEY TRONIC CORPORATION SAID IT WILL LAY OFF ONE HUNDRED FULL TIME EMPLOYEES AND TWO HUNDRED TEMPORARY EMPLOYEES IN A PLAN TO RESTRUCTURE ITS PRODUCTION AND WILL TAKE AN UNSPECIFIED CHARGE FOR ITS FISCAL SECOND QUARTER ENDED JANUARY FIRST THE RESTRUCTURING IS PART OF THE COMPUTER KEYBOARD MAKER'S ACQUISITION OF HONEYWELL INCORPORATED'S KEYBOARD BUSINESS LAST YEAR AND DOESN'T CONSTITUTE DOWNSIZING THE COMPANY SAID FEDERAL EXPRESS CORPORATION SAID IT WON A MULTIYEAR CONTRACT FROM GENERAL MOTORS CORPORATION TO THE CARRY ALL OF THE AUTO MAKER'S OVERNIGHT LETTERS PACKAGES AND PARTS FOR DEALERS FEDERAL EXPRESS DECLINED TO SPECIFY THE DURATION OR VALUE OF THE CONTRACT EXCEPT TO SAY IT WOULD BE WORTH QUOTE TENS OF MILLIONS QUOTE OF DOLLARS A YEAR ANALYSTS SAID THE AWARD WOULDN'T CHANGE THEIR EARNINGS ESTIMATES FOR THE COMPANY THE CONTRACT IS THE LATEST COUP FOR FEDERAL EXPRESS IN THE GROWING WAR OVER EXCLUSIVE DEALS IN THE EXPRESS DELIVERY INDUSTRY AS COMPANIES DELIVER MORE GOODS BY OVERNIGHT AND PRIORITY DELIVERY THEY ARE INCREASINGLY WILLING TO GIVE MOST OR ALL OF THEIR BUSINESS TO ONE CARRIER IN EXCHANGE FOR BULK DISCOUNTS FEDERAL EXPRESS FOR INSTANCE RECENTLY WON AN EXCLUSIVE CONTRACT FOR L. L. BEAN'S BUSINESS UNITED PARCEL SERVICE RECENTLY BECAME THE PREFERRED SHIPPER FOR CITICORP AND J. C. PENNEY AND AIRBORNE EXPRESS HANDLES THE BULK OF I. B. M.'S U. S. BUSINESS AS PART OF THE G. M. CONTRACT FEDERAL EXPRESS IS EXPECTED TO CUT THE AUTO MAKER'S SHIPPING COSTS OVER THE LENGTH OF THE AGREEMENT FEDERAL EXPRESS FOR INSTANCE MAY INSTALL COMPUTERS IN G. M. FACILITIES ELIMINATING THE NEED FOR G. M. STAFFERS TO HANDLE BILLING PAPERS FEDERAL EXPRESS HAD BEEN HANDLING SOME OF G. M.'S DELIVERY BUSINESS BUT THE NEW CONTRACT MORE THAN DOUBLES THE BUSINESS FROM THE COMPANY SAID WILLIAM J. RAZZOUK EXECUTIVE VICE PRESIDENT FOR GLOBAL CUSTOMER SERVICES AT FEDERAL EXPRESS G. M. IS NOW AMONG FEDERAL EXPRESS'S TOP FIVE CUSTOMERS ALTHOUGH THE COMPANY WON'T HANDLE PARTS FOR MANUFACTURING PLANTS IT WILL CARRY PARTS TO DEALERS A TWENTY FOUR BILLION DOLLAR BUSINESS FOR G. M. ANTHONY F. EARLEY JUNIOR CREDITED WITH RECOUPING SOME LOSSES ASSOCIATED WITH ANOTHER UTILITY'S FAILED NUCLEAR PLANT WAS NAMED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR OF DETROIT EDISON COMPANY EFFECTIVE MARCH FIRST PRIOR TO BECOMING PRESIDENT IN NINETEEN EIGHTY NINE OF LONG ISLAND LIGHTING COMPANY HICKSVILLE N. Y. MR. EARLEY FORTY FOUR YEARS OLD SERVED AS LILCO'S GENERAL COUNSEL AND WAS WIDELY CREDITED WITH STEERING THE COMPANY THROUGH THE SHOREHAM NUCLEAR PLANT CONTROVERSY THE UTILITY DECIDED TO CLOSE THE FACILITY IN THE FACE OF MOUNTING CONTROVERSY AND LITIGATION MR. EARLEY HELPED NEGOTIATE A DEAL WITH THE STATE THAT ENABLED LILCO TO RECOUP MOST OF ITS INVESTMENT IN SHOREHAM THROUGH A SERIES OF RATE INCREASES THROUGH THE NINETEEN NINETIES BECAUSE OF HIS SUCCESSES AT LILCO SOME ANALYSTS CONSIDERED HIM THE HEIR APPARENT TO WILLIAM J. CATACOSINOS SIXTY THREE LILCO'S CHAIRMAN AND CHIEF EXECUTIVE QUOTE I'M SURPRISED HE'S LEAVING WHEN HE COULD HAVE BEEN C. E. O. IN A FEW YEARS QUOTE SAID BARRY M. ABRAMSON AN ANALYST WITH PRUDENTIAL SECURITIES GROUP INCORPORATED MAYBE HE CAN USE HIS EXPERTISE IN NUCLEAR ISSUES AT THE FERMI PLANT WHICH SEEMS VERY IMPORTANT TO DETROIT EDISON HIS APPOINTMENT COMES AS DETROIT EDISON IS ASSESSING THE DAMAGES CAUSED LAST MONTH BY A FIRE AT ITS FERMI TWO NUCLEAR POWER PLANT IN MONROE MICHIGAN THE COMPANY HAS SAID THE RESULTING SHUTDOWN AT THE PLANT COULD AFFECT NINETEEN NINETY FOUR EARNINGS JOHN E. LOBBIA FIFTY TWO WHO FORMERLY HELD THE POSITION OF DETROIT EDISON PRESIDENT WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE UTILITY A SPOKESWOMAN FOR LILCO SAID THE COMPANY WOULD ANNOUNCE SUCCESSION PLANS FOR MR. EARLEY'S POSITION AT A LATER DATE THE CLINTON ADMINISTRATION'S NEW TASK FORCE ON COLD WAR HUMAN EXPERIMENTS WON'T ADDRESS THE SAFETY CONCERNS OF PRESENT AND PAST EMPLOYEES AT NUCLEAR WEAPONS PLANTS OR NUCLEAR TEST SITES AN ENERGY DEPARTMENT OFFICIAL SAID AT A NEWS CONFERENCE MICHAEL GAULDIN THE DEPARTMENT'S DIRECTOR OF PUBLIC AFFAIRS SAID THE INTERAGENCY WORKING GROUP AND A RELATED ADVISORY PANEL OF OUTSIDE EXPERTS WOULD FOCUS ONLY ON QUOTE INTENTIONAL QUOTE OR QUOTE DELIBERATE QUOTE EXPOSURES OF INDIVIDUALS TO RADIATION IN GOVERNMENT FUNDED EXPERIMENTS HE SAID THAT THIS INCLUDES PARTICIPANTS IN HUMAN EXPERIMENTS AS WELL AS INDIVIDUALS EXPOSED TO RADIATION IN SEVERAL TESTS BY THE MILITARY AND THE FORMER ATOMIC ENERGY COMMISSION IN WHICH RADIOACTIVE MATERIAL WAS DELIBERATELY RELEASED INTO THE ATMOSPHERE THE TESTS WHICH OCCURRED DURING THE NINETEEN FORTIES AND NINETEEN FIFTIES IN WASHINGTON OREGON UTAH TENNESSEE AND NEW MEXICO WERE THE SUBJECT OF A RECENT REPORT BY THE GENERAL ACCOUNTING OFFICE MR. GAULDIN SAID IT ISN'T CLEAR WHETHER GRIEVANCES OF EX SERVICEMEN WHO PARTICIPATED IN MILITARY TESTS ON THE EFFECTS OF RADIATION WOULD BE ADDRESSED BY THE TASK FORCE BUT HE SAID THAT CLAIMS OF SO CALLED DOWNWINDERS OR INDIVIDUALS WHO LIVE NEAR AREAS WHERE NUCLEAR WEAPONS TESTS HAVE BEEN CONDUCTED WOULDN'T BE CONSIDERED BY THE TASK FORCE A SEPARATE FEDERAL PROGRAM IS ALREADY IN PLACE TO COMPENSATE DOWNWINDERS MR. GAULDIN SAID THAT A SURVEY OF FOUR THOUSAND CALLERS TO THE ENERGY DEPARTMENT'S NEW HOTLINE ON HUMAN RADIATION EXPERIMENTS FOUND THAT TWENTY TWO PERCENT REPORTED THEY PARTICIPATED AS CIVILIANS IT'S ACTUALLY MUCH LESS THAN WE AT FIRST THOUGHT HE SAID THE OUSTED CHAIRMAN OF BANCO ESPANOL DE CREDITO SAID HE PLANS TO APPEAL THE CENTRAL BANK'S DE FACTO TAKEOVER CLAIMING THAT THE BANK OF SPAIN EXAGGERATED THE FINANCIAL PROBLEMS AT BANESTO AS THE BANK IS KNOWN BUT IN WHAT APPEARED TO MARK A FORMAL PARTING OF WAYS J. P. MORGAN AND COMPANY BANESTO'S INVESTMENT BANKING ADVISER ANNOUNCED THAT IT WOULDN'T JOIN THE FORMER OFFICIAL MARIO CONDE IN THE APPEAL QUOTE WE DON'T INTEND TO JOIN CONDE'S APPEAL OR INITIATE ONE OF OUR OWN QUOTE A SPOKESMAN FOR J. P. MORGAN DECLARED WE UNDERSTAND THE BANK OF SPAIN'S ACTION AS A REGULATOR J. P. MORGAN BECAME ENMESHED IN BANESTO'S DIFFICULTIES BECAUSE OF ITS ROLE IN LEADING A BIG CAPITAL INCREASE FOR THE SPANISH BANK LAST YEAR ITS VICE CHAIRMAN ROBERTO MENDOZA WAS A MEMBER OF MR. CONDE'S BOARD IN HIS FIRST PUBLIC STATEMENT SINCE THE BANK OF SPAIN'S DECEMBER TWENTY EIGHTH MOVE TO TAKE MANAGEMENT CONTROL AT BANESTO MR. CONDE TOLD A NEWS CONFERENCE THAT AN INTERNAL ANALYSIS OF BANESTO'S FINANCING NEEDS LAST MONTH HAD PUT THE BANK'S FINANCIAL SHORTFALL AT ONLY TWO HUNDRED SIXTY FIVE BILLION PESETAS ONE POINT EIGHT FOUR BILLION DOLLARS REJECTING A NUMBER OF ELEMENTS IN THE BANK OF SPAIN'S ASSESSMENT HE SAID BANESTO HAD NO NEED AT PRESENT TO MAKE EXTRA PROVISIONS FOR POTENTIAL LOSSES ON ITS INDUSTRIAL PORTFOLIO OR ITS FUTURE PENSION REQUIREMENTS HOWEVER HE OMITTED THAT THE BANK'S ASSESSMENT OF ITS FINANCING NEEDS DRAWN UP IN ASSOCIATION WITH J. P. MORGAN AND SUBMITTED TO THE CENTRAL BANK ON DECEMBER TWENTY THIRD WAS BASED IN PART ON THE USE OF TAX CREDITS THAT THE BANK WOULD HAVE HAD TO APPLY FOR FROM FISCAL AUTHORITIES WITH NO GUARANTEE THAT IT WOULD GET THEM THE NEW MANAGEMENT TEAM INSTALLED AT BANESTO BY THE BANK OF SPAIN IS EXPECTED SHORTLY TO PUBLISH FIGURES SHOWING A FINANCIAL SHORTFALL AT THE BANK SIGNIFICANTLY IN EXCESS OF THE FIVE HUNDRED THREE BILLION PESETAS ESTIMATED LAST MONTH BY THE BANK OF SPAIN MEANTIME MR. CONDE FAILED TO CLARIFY A NUMBER OF OTHER QUESTIONS RELATING TO BANESTO'S FINANCES INCLUDING THE STATUS AND PURPOSE OF AN INTERNATIONAL NETWORK OF NONBANKING INTERMEDIARY COMPANIES THAT IS NOW COMING TO LIGHT REPRESENTATIVES OF THE NEW MANAGEMENT TEAM ARE TRYING TO UNRAVEL A WEB OF FINANCIAL TRANSACTIONS ALLEGEDLY USED BY MR. CONDE TO PROVIDE ARTIFICIAL SUPPORT FOR THE BANK'S SHARE PRICE RECORDS RECORDS EVERYWHERE ARE ANY STOCKS STILL CHEAP THAT'S A QUESTION MANY INVESTORS ARE ASKING NOW THAT THE DOW JONES INDUSTRIAL AVERAGE HAS PLOWED THROUGH THE THREE THOUSAND EIGHT HUNDRED MARK LIKE A KNIFE THROUGH BUTTER THERE ARE STILL SOME STOCKS ON THE BARGAIN COUNTER INVESTMENT PROFESSIONALS SAY ALBEIT PRECIOUS FEW THE ACCOMPANYING TABLE PREPARED BY MARKETBASE A NEEDHAM MASSACHUSETTS INFORMATION FIRM SHOWS TWO DOZEN STOCKS THAT RATE AS CHEAP AT LEAST COMPARED WITH MANY OTHERS IN TODAY'S CLOUD LEVEL MARKET SOME OF THESE STOCKS ARE IN THE DOGHOUSE FOR A VERY GOOD REASON THEY ARE DOGS BUT OVER THE YEARS MANY PROFESSIONAL MONEY MANAGERS HAVE MADE A GOOD LIVING BARGAIN HUNTING AMONG OUT OF FAVOR STOCKS STARTING WITH LISTS LIKE THIS UPON SCANNING THE CHEAP STOCK LIST A FEW MONEY MANAGERS SAID THEY SPIED AT LEAST ONE GEM IN THE ROUGH CYPRUS AMAX MINERALS AN ENGLEWOOD COLORADO COMPANY THAT MINES COPPER AND OTHER MINERALS SEVERAL MANAGERS ARE KEEPING AN EYE ON THE JANITORIAL COMPANY AMERICAN BUILDING MAINTENANCE AND THE TOY AND GIFT MARKETER RUSS BERRIE THOUGH THEY HOPE TO PICK THEM UP A BIT CHEAPER THE SHARPEST DEBATE IS OVER KMART DEFENDERS LAUD THE CHEAPNESS OF THE RETAILER'S STOCK OPPONENTS ATTACK THE LETHARGY AS THEY SEE IT OF THE MANAGEMENT STOCKS SHOWN IN THE TABLE MET THREE CRITERIA THEY HAVE BEEN TRADING FOR AT MOST FOURTEEN TIMES THE PAST FOUR QUARTERS' PER SHARE EARNINGS ONE POINT FIVE TIMES BOOK VALUE ASSETS MINUS LIABILITIES PER SHARE AND ONE POINT OH TIMES SALES PER SHARE STOCKS THAT PASS THIS TRIPLE SCREEN ARE UNUSUALLY CHEAP IN TODAY'S VERY HIGHLY VALUED STOCK MARKET IN NORMAL TIMES HOWEVER SUCH VALUES WOULD LOOK RATHER ORDINARY HERE ARE COMMENTS MONEY MANAGERS OFFERED THIS WEEK ABOUT SOME OF THE NAMES THAT SHOW UP ON THE CHEAP STOCK LIST CYPRUS AMAX MINERALS QUOTE A WHIFF OF ECONOMIC RECOVERY AND A WHIFF OF INFLATION QUOTE SHOULD HELP THIS STOCK IN NINETEEN NINETY FOUR SAYS CHRIS BERTELSEN A MANAGER WITH EAGLE ASSET MANAGEMENT IN SAINT PETERSBURG FLORIDA IT'S COPPER AND GOLD AND A LOT OF DIFFERENT MINERALS A COMMODITY PLAY I'M FAIRLY HIGH ON IT AT TODAY'S PRICES MR. BERTELSEN SAYS IT'S CERTAINLY A VERY LOW EXPECTATION STOCK SCOTT BLACK PRESIDENT OF DELPHI MANAGEMENT IS A CYPRUS FAN TO THE TUNE OF TWO HUNDRED SIXTY TWO THOUSAND SHARES CYPRUS IS FINE HE SAYS BUT COPPER PRICES RECENTLY DEPRESSED BY RECESSIONS IN EUROPE AND JAPAN ARE BEYOND ITS CONTROL IF SOMEBODY WANTS TO MAKE THE BET THAT WORLD ECONOMIES ARE COMING BACK THIS IS A SMART WAY TO PLAY IT BECAUSE THEY'RE AN EFFICIENT LOWCOST PRODUCER AMERICAN BUILDING MAINTENANCE THIS ONE PROVIDES A GOOD EXAMPLE OF HOW QUOTE VALUE MANAGERS QUOTE OR PROFESSIONAL BARGAIN HUNTERS THINK WHILE OTHER MANAGERS WHO DEAL IN HOT GROWTH STOCKS OFTEN WANT TO BE QUICK ON THE TRIGGER VALUE MANAGERS OFTEN TAKE THEIR TIME RUN THE NUMBERS JUST ONCE MORE AND WAIT FOR A STOCK TO WEAKEN A LITTLE FURTHER BEFORE IT FALLS INTO THEIR CLUTCHES ROLAND WHITRIDGE MANAGER OF BABSON VALUE FUND SAYS HE THINKS AMERICAN BUILDING MAINTENANCE IS AN INTERESTING STOCK IT SEEMS VERY ATTRACTIVE ON THE NUMBERS HE SAYS I JUST HAVEN'T PUT THE CASE TOGETHER TO GO OUT AND WRITE A TICKET ON IT ONE REASON HE HESITATES A LOT OF ITS OPERATIONS ARE IN THE LOS ANGELES AREA WHICH IS STILL QUITE DEPRESSED MR. BLACK OF DELPHI ISN'T PULLING THE TRIGGER YET EITHER AMERICAN BUILDING MAINTENANCE SPECIALIZES IN MAINTAINING HIGH RISE OFFICE BUILDINGS HE SAYS THAT'S ONE OF THE SOGGIEST PARTS OF THE REAL ESTATE REALM TODAY SO REVENUE GROWTH IS VERY SLOW DOES THAT MEAN MR. BLACK IS TURNING UP HIS NOSE AT THE STOCK NOT AT ALL QUOTE THE FUNDAMENTALS ARE DECENT QUOTE HE SAYS BUT IT'S A LITTLE EXPENSIVE AT ELEVEN POINT FIVE TIMES ESTIMATED NINETEEN NINETY FOUR EARNINGS IF YOU'RE A TEN MULTIPLE MAN LIKE ME YOU'VE GOT TO WAIT FOR THE STOCK PRICE TO SAG A BIT MORE RUSS BERRIE THE OAKLAND N. J. MAKER OF TOYS CANDY AND IMPULSE ITEMS RODE HIGH LAST YEAR ON THE STRENGTH OF ITS TROLL DOLLS BUT AS THE LATEST TROLL FAD HAS FADED THE STOCK HAS EBBED THIRTY PERCENT TO A CLOSING PRICE YESTERDAY OF THIRTEEN AND SEVEN EIGHTHS DOWN ONE EIGHTH RUSS BERRIE IS A STOCK THAT YOU CAN MAKE MONEY ON IF YOU BUY IT RIGHT SAYS MARK BOYAR OF BOYAR ASSET MANAGEMENT IN NEW YORK YOU CAN BUY IT IN THE LOW TEENS THAT OPPORTUNITY COMES ALONG ONCE EVERY COUPLE OF YEARS MR. BOYAR SAYS HE SOLD THE STOCK IN THE MID TWENTIES BECAUSE IT QUOTE HIT OUR TARGET QUOTE DURING THE TROLL MANIA NOW THAT THE STOCK IS DOWN TO FOURTEEN IT'S ONCE AGAIN INTERESTING HE SAYS THOUGH HE HASN'T BOUGHT IT YET THE COMPANY HE SAYS HAS A WONDERFUL DISTRIBUTION NETWORK WITH SOME EIGHT HUNDRED SALESPEOPLE WHO CALL ON CARD SHOPS GIFT SHOPS AND OTHER RETAILERS RUSS BERRIE IS TOO SMALL FOR INCLUSION IN HER INSTITUTIONAL PORTFOLIOS SAY LOIS BURLEIGH DIRECTOR OF EQUITY INVESTMENTS AT A. S. B. CAPITAL MANAGEMENT AN INSTITUTIONAL MONEY MANAGER IN WASHINGTON BUT SHE SAYS I AM PLANNING TO TAKE A LOOK AT IT FOR MY OWN PORTFOLIO GUILFORD MILLS DAVID KATZ CHIEF INVESTMENT OFFICER AT MATRIX ASSET ADVISORS IN NEW YORK IS KEEPING A CLOSE WATCH ON GUILFORD MILLS THE GREENSBORO N. C. TEXTILE MAKER THE STOCK IS DOWN ABOUT FIVE POINTS FROM ITS HIGH PARTLY BECAUSE THERE WERE NO STRONG FASHION TRENDS THIS YEAR MR. KATZ SAYS QUOTE IF IT CAME DOWN TO NINETEEN WE WOULD HAVE AN INTEREST QUOTE GUILFORD SHARES CLOSED YESTERDAY AT TWENTY THREE AND ONE HALF UP ONE EIGHTH KMART THE TROY MICHIGAN RETAILER GENERATED THE MOST VIGOROUS ARGUMENTS OF ANY STOCK ON THE LIST WE JUST STARTED BUYING IT THIS WEEK SAYS MR. KATZ THE ANALYST COMMUNITY HAS GIVEN UP ON THE COMPANY IT IS SELLING FOR LESS THAN TEN TIMES NORMALIZED EARNINGS AND YOU GET PAID A FOUR POINT EIGHT PERCENT DIVIDEND YIELD WHILE YOU WAIT MS. BURLEIGH OF A. S. B. CALLS KMART SHARES DIRT CHEAP A. S. B. ALREADY OWNS SOME AND SHE SAYS SHE MAY ADD TO THE POSITION THE STOCK WAS AT TWENTY UNCHANGED YESTERDAY SHE THINKS A REALISTIC TARGET WOULD BE THE HIGH TWENTIES BUT OTHERS SAY THEY WOULDN'T TOUCH THE STOCK NICE PEOPLE GREAT ART COLLECTION IN THE CORPORATE OFFICES BUT SAYS ONE MONEY MANAGER QUOTE I HATE KMART QUOTE SAYS MR. BERTELSEN OF EAGLE ASSET MANAGEMENT THEY ARE GETTING BEATEN UP AT THE HIGH END BY J. C. PENNEY AT THE LOW END BY CALDOR AND IN THE MIDDLE BY SEARS HE SAYS AND THEY CERTAINLY CAN'T MATCH WAL MART IN THE LOW PRICE STORE WARS THEY HAVE TO GET A GRIP ON WHAT THEY'RE TRYING TO DO HOME IS WHERE THE HEART IS BUT THE WORKPLACE JUDGING FROM A SLEW OF RECENT COMMERCIALS IS WHERE THE HEARTBURN IS MADISON AVENUE IS INCREASINGLY PORTRAYING THE OFFICE AS HELL ON EARTH POPULATED BY SCREAMING BOSSES WHO RELENTLESSLY PILE THE WORK ON THEIR SUFFERING EMPLOYEES ADVERTISERS ALSO ARE CASTING EMPLOYEES IN THE ROLE OF FEARFUL UNDERLINGS WHO ARE AFRAID TO TAKE A SICK DAY SOME COMPANIES EVEN MENTION THE DREADED PHRASE QUOTE LAID OFF QUOTE IN THEIR COMMERCIALS HOW TIMES HAVE CHANGED IN COMMERCIALS HEADACHES USED TO ORIGINATE AT HOME WITH SCREAMING KIDS AND BURNED POT ROAST PROBLEMS AT THE OFFICE IN ADS WERE CONFINED TO HARMLESS MALADIES SUCH AS BAD BREATH AND DANDRUFF NOWADAYS COMMERCIALS HAVE EMPLOYEES ON THE EDGE ONE SOLUTION TO THEIR ANXIETY OF COURSE IS THE PRODUCT BEING ADVERTISED FOR EXAMPLE COMMERCIALS FOR CONTAC A PRODUCT FROM SMITHKLINE BEECHAM SHOW A CONSTRUCTION WORKER SLOGGING THROUGH A SOAKING RAIN IN A VOICE OVER HE SAYS HOW HE NEEDED TO TAKE THE COLD MEDICINE IN ORDER TO GET TO WORK CONTAC HE SAYS WILL TAKE YOU THROUGH THE WHOLE DAY HE ADDS NO WORK NO PAY FORTUNE MAGAZINE PUBLISHED BY TIME WARNER TAKES THE JOB ANXIETY FACTOR TO NEW HEIGHTS WHAT'S WORSE GETTING LAID OFF ON FRIDAY OR BEING TOLD TO PICK UP THE SLACK ON MONDAY ASKS A PRINT AD SHOWING A DAZED BALDING YUPPIE MARKETING EXPERTS SAY THEY BELIEVE THE TACTIC IS EFFECTIVE BECAUSE THERE IS SO MUCH JOB INSECURITY AMONG BOTH WHITE COLLAR AND BLUE COLLAR WORKERS IT'S PRETTY CLEAR THAT PEOPLE ARE SURROUNDED BY OTHERS WHO ARE LAID OFF SAYS CAROL MOOG A PSYCHOLOGIST AND ADVERTISING CONSULTANT AT CREATIVE FOCUS IN BALA CYNWYD PENNSYLVANIA AND THE ADS REFLECT FEELINGS THAT YOU CAN'T TAKE A CHANCE OF HAVING A BOSS GET MAD AT YOU THAT'S HOW GREAT THE PRESSURE IS THESE DAYS QUOTE INDEED THE CONTAC SPOT FROM GREY ADVERTISING WAS COMMISSIONED AFTER INTERVIEWS WITH ABOUT EIGHT HUNDRED CONSUMERS REVEALED HOW UNEASY THEY ARE IN THEIR JOBS THE WORRY IS THAT IF I DON'T GO TO WORK I WON'T GET PAID AND THERE ARE PLENTY OF PEOPLE STANDING IN LINE WAITING TO DO MY JOB SAYS BARBARA FEIGIN AN EXECUTIVE VICE PRESIDENT AT GREY WE'RE BUILDING THE CAMPAIGN ON REAL HUMAN INSIGHTS DAVID NIMZ PROMOTION DIRECTOR AT FORTUNE SAYS THE MAGAZINE CHOSE ITS STARK WORK SITUATION STRATEGY BECAUSE THE WORKPLACE IS GOING THROUGH A REVOLUTION AS DRAMATIC AS THE INDUSTRIAL REVOLUTION YEARS AGO I DON'T KNOW ANYONE WHO HASN'T HAD THE THOUGHTS WE USE IN OUR ADS IS IT A DOWNER IT'S REALITY I LOOK AT THESE ADS HE SAYS AND WONDER AM I STUPID BECAUSE MY RESUME ISN'T IN ORDER PEOPLE USED TO THINK THEY WERE IMMUNE TO LAYOFFS NO LONGER BUT THERE'S A RISK OF SCARING THE CONSUMER TOO MUCH QUOTE YOU CAN RAISE THE ANXIETY LEVEL SO FAR IN ADS BY RESONATING PEOPLE'S REAL FEARS QUOTE DOCTOR MOOG SAYS BUT IF YOU RAISE IT TOO FAR THE MESSAGE GETS OVERWHELMED BY SHOWING PEOPLE CRINGING IT COULD KNOCK OUT THE CONSUMER'S ABILITY TO REGISTER THE MESSAGE YOU'RE TRYING TO SEND WHICH AFTER ALL IS BUY OUR PRODUCT PERHAPS THAT IS WHY SOME COMPANIES CHOOSE TO LACE THEIR MESSAGES WITH HUMOR OR HAVE A HAPPY ENDING A COMMERCIAL FOR FEDERAL EXPRESS FOR INSTANCE SHOWS A FEMALE EMPLOYEE BERATED BY HER IMPOSING BOSS INQUIRING ABOUT THE WHEREABOUTS OF A PACKAGE WITH BARELY A SMIRK SHE FINDS ITS LOCATION THE TIME IT WAS DELIVERED AND WHO SIGNED FOR IT THE BLOWHARD BOSS WALKS BRISKLY AWAY HER FELLOW WORKERS WHO WITNESS THIS VERBAL ONSLAUGHT BEGIN APPLAUDING WILDLY AS SHE STANDS UP AND TAKES HER BOW A MCDONALD'S COMMERCIAL SHOWS A MAN BUYING HIS BREAKFAST AT A DRIVE IN WINDOW SO HE CAN GET TO WORK FAST AS THE EMPLOYEE IS ABOUT TO BITE INTO HIS FOOD HE HEARS HIS BOSS SHRIEKING FOR HIM THE POOR SOUL CRINGES MEEKLY AS AN ANNOUNCER ASKS THEN AGAIN WHY ARE YOU IN A HURRY TO GET TO WORK PEOPLE HAVE A LOVE HATE RELATIONSHIP WITH THEIR JOBS AND THE MCDONALD'S COMMERCIALS REFLECT THAT SAYS CHERYL BERMAN EXECUTIVE VICE PRESIDENT AND GROUP CREATIVE DIRECTOR AT LEO BURNETT MCDONALD'S AD AGENCY WE LOOK FOR UNIVERSAL SITUATIONS FOR OUR SPOTS AND EVERYONE HAS BEEN IN THAT SITUATION QUOTE AND MANY OF THOSE SITUATIONS HAVE BEEN PORTRAYED IN ADS FOR ROBITUSSIN LIQUI GELS COLD FORMULA FROM A. H. ROBINS'S CONSUMER PRODUCTS DIVISION A WORKER SUFFERING A COLD IS TRYING IN VAIN TO GET THROUGH A PILE OF PAPERWORK WHEN SHE TAKES THE ROBITUSSIN SHE FEELS BETTER AND SUCCESSFULLY TACKLES HER WORK ONLY TO HAVE HER BOSS APPEAR AND DUMP MORE PAPERS FOR HER TO GO THROUGH A SPOKESWOMAN FOR A. H. ROBINS SAYS THE SCENE DEPICTS NOT AN UNPLEASANT WORKPLACE BUT ONE THAT IS BUSY THE WORKER HAS A BEMUSED LOOK ON HER FACE WHEN SHE GETS MORE WORK SAYS THE SPOKESWOMAN SOME ADS SHOW WORKERS IN BLEAK SURROUNDINGS FOR INSTANCE A SPOT FOR DANNON YOGURT HAS A BLACK AND WHITE SCREEN EXPLODE IN RICH COLORS WHEN AN EMPLOYEE LEAVES HER OFFICE FOR LUNCH WHEN SHE RETURNS TO WORK THE SCREEN RETURNS TO BLACK AND WHITE AGENCIES ARE FINALLY BEGINNING TO UNDERSTAND THEIR CUSTOMERS AND NOT JUST SELLING PRODUCT WITH A CUTE MESSAGE SAYS STEVEN E. PERMUT PRESIDENT OF MARKETING SCIENCES A MARKETING AND ADVERTISING CONSULTING FIRM IN GUILFORD CONNECTICUT INSTEAD THEY'RE POSITIONING THE BENEFITS OF USING THE PRODUCTS BUY THIS AND YOU WON'T STAY HOME FROM WORK ACCOUNT BAKERS SQUARE RESTAURANTS A UNIT OF VICORP RESTAURANTS INCORPORATED MOVED ITS AD ACCOUNT FROM THE CHICAGO OFFICE OF SAATCHI AND SAATCHI'S C. M. E. KHBB TO CHICAGO AGENCY TATHAM EURO R. S. C. G. BILLINGS ARE ABOUT EIGHT MILLION DOLLARS ACCORDING TO INDUSTRY ESTIMATES ORGANIZED LABOR WILL PUT ASIDE ITS BITTERNESS TOWARD THE WHITE HOUSE OVER THE NORTH AMERICAN FREE TRADE AGREEMENT AND WAGE AN ALL OUT EFFORT TO WIN PASSAGE OF PRESIDENT CLINTON'S HEALTH CARE BILL A. F. L. C. I. O. PRESIDENT LANE KIRKLAND SAID QUOTE I KNOW OF NO ISSUE THAT IS MORE IMPORTANT RIGHT NOW TO THE FUTURE OF THE COUNTRY QUOTE THE SEVENTY THREE YEAR OLD UNION LEADER TOLD A SMALL GROUP OF REPORTERS OVER COFFEE IN HIS OFFICE HERE THE SUCCESSFUL ENACTMENT OF A GOOD HEALTH CARE PROGRAM WILL AFFECT EVERY ISSUE IN THIS COUNTRY FROM SAFE STREETS TO THE GENERAL WELFARE OF THE POPULATION TO INTERNATIONAL COMPETITIVENESS WHITE HOUSE OFFICIALS HAILED HIS REMARKS THIS IS A HUGE STEP TOWARD BUILDING THE COALITION THAT IS NEEDED TO INSURE HEALTH SECURITY FOR EVERY AMERICAN SAID ROBERT BOORSTIN A SPOKESMAN FOR THE ADMINISTRATION'S HEALTH CARE CAMPAIGN WE ARE PARTICULARLY PLEASED THAT THE UNIONS MANY OF WHICH HAVE EXCELLENT HEALTH BENEFITS RECOGNIZE HOW GOOD OUR PLAN IS ONLY TWO OF THE MAJOR PENDING HEALTHCARE PROPOSALS MEET THE A. F. L. C. I. O.'S CRITERIA MR. KIRKLAND SAID THE CLINTON BILL WHICH WOULD REQUIRE ALL EMPLOYERS TO CONTRIBUTE TO THE COST OF A COMPREHENSIVE HEALTH BENEFITS PACKAGE FOR EACH WORKER AND A PLAN ESTABLISHING A TAXPAYER FINANCED SYSTEM WHERE THE GOVERNMENT PAYS EVERYONE'S MEDICAL BILLS WHILE UNIONS PREFER THE LATTER MR. KIRKLAND SAID THAT THE PRESIDENT'S PLAN HAS A FAR GREATER CHANCE OF PASSING CONGRESS CONSEQUENTLY HE SAID UNIONS WILL BE KEY ACTIVE AGGRESSIVE PLAYERS IN PUSHING FOR PASSAGE OF THE PRESIDENT'S BILL THIS YEAR MR. KIRKLAND'S COMMENTS CAME AS A HUGE RELIEF TO THE WHITE HOUSE WHICH FOUGHT FIERCELY WITH THE A. F. L. C. I. O. OVER THE TRADE AGREEMENT LAST FALL UNTIL THE FALLOUT OVER THE TRADE PACT UNIONS HAD BEEN AMONG THE PRESIDENT'S MOST VOCAL SUPPORTERS ON HEALTH CARE BUT AFTER MR. CLINTON WON CONGRESSIONAL APPROVAL OF NAFTA OVER THE LABOR FEDERATION'S OPPOSITION MANY UNIONS BEGAN EQUIVOCATING THE EXTENT OF THEIR COOPERATION WITH THE ADMINISTRATION ON HEALTH CARE YESTERDAY MR. KIRKLAND SAID THE AFLCIO AND ITS EIGHTY SIX AFFILIATED UNIONS STILL FEEL A LINGERING PAIN OVER NAFTA BUT HE SAID QUOTE THAT MAKES IT ALL THE MORE ESSENTIAL I BELIEVE THAT WE DETACH HEALTH CARE FROM THIS CONCERN QUOTE BUT WHILE THE A. F. L.'S NATIONAL LEADERSHIP HAS SOME CLOUT AND INFLUENCE OVER ITS AFFILIATES IN THE END IT IS THE FUNDING AND FIELDWORK OF THE INDIVIDUAL UNIONS ACROSS THE COUNTRY THAT DETERMINE HOW SUCCESSFUL A LABOR CAMPAIGN IS THERE WERE INDICATIONS THAT STATE AND LOCAL LEADERS TOO WERE DETERMINED NOT TO LET THEIR ANGER OVER NAFTA STAND IN THE WAY OF HEALTH CARE FRANK GARRISON PRESIDENT OF THE MICHIGAN A. F. L. C. I. O. WHICH WAGED ONE OF THE MOST AGGRESSIVE ANTI NAFTA CAMPAIGNS IN THE COUNTRY SAID IN AN INTERVIEW YESTERDAY THERE'S NOTHING WE WON'T DO TO PASS HEALTH CARE WHILE UNIONS WERE CLIMBING ON THE HEALTH BANDWAGON NEW YORK'S DEMOCRATIC GOVERNOR MARIO CUOMO WAS RAISING QUESTIONS ABOUT IT MR. CUOMO HAS WRITTEN A LETTER TO ALL OF THE STATE'S EMPLOYEES SAYING THE WHITE HOUSE HEALTH BILL WOULD DISMANTLE AND UNDERMINE NEW YORK STATE'S PUBLIC EMPLOYEE HEALTH PLAN THE CLINTON PLAN CAPS THE AMOUNT OF MONEY PRIVATE EMPLOYERS WILL HAVE TO SPEND ON HEALTH CARE AT SEVEN POINT NINE PERCENT OF PAYROLL BUT PROVIDES NO SUCH LIMIT ON PUBLIC EMPLOYERS' HEALTH SPENDING THAT WOULD CREATE A THREAT OF POTENTIAL REDUCTION IN HARD WON BENEFITS AND INCREASED COSTS FOR THE STATE FOR YOU AND YOUR FAMILY MR. CUOMO WROTE THE LETTER WAS REPORTED IN TUESDAY'S EDITIONS OF THE NEW YORK TIMES MOODY'S INVESTORS SERVICE INCORPORATED UPGRADED BANK OF IRELAND'S RATINGS FOR SENIOR DEBT AND LONG TERM DEPOSITS TO SINGLE A ONE FROM SINGLE A TWO AFFECTING SEVEN HUNDRED EIGHTY MILLION DOLLARS IN DEBT THE RATING REFLECTS THE IMPROVEMENT IN BANK OF IRELAND'S ASSET QUALITY AND CORE PROFITABILITY MOODY'S SAID THE OUTLOOK FOR BUSINESS DEVELOPMENT IN THE RETAIL SEGMENT SHOULD FURTHER STRENGTHEN THE BANK'S POSITION THE RATING SERVICE ADDED ITEL CORPORATION CHICAGO MOODY'S INVESTORS SERVICE INCORPORATED SAID IT RAISED THE SENIOR SUBORDINATED DEBT RATINGS OF THIS COMPANY TO SINGLE B. TWO FROM SINGLE B. THREE THE MOVE AFFECTS ABOUT TWO HUNDRED SIXTY SEVEN POINT FIVE MILLION DOLLARS OF DEBT THE RATING AGENCY ATTRIBUTED ITS ACTION PARTLY TO A QUOTE MORE FAVORABLE OUTLOOK QUOTE FOR ITEL'S CORE BUSINESSES THE DISTRIBUTION OF WIRING AND OTHER DATA TRANSMISSION PRODUCTS FOR TELECOMMUNICATIONS MARKETS MAXUS ENERGY CORPORATION DALLAS STANDARD AND POOR'S CORPORATION SAID IT ASSIGNED A DOUBLE B. RATING TO THIS ENERGY CONCERN'S SIXTY MILLION DOLLAR SENIOR NOTES DUE TWO THOUSAND THREE AND PLACED THE NOTES ON CREDITWATCH WITH NEGATIVE IMPLICATIONS S. AND P. ALSO SAID IT PLACED MAXUS'S DOUBLE B. SENIOR AND SENIOR B. PLUS PREFERRED STOCK ON CREDITWATCH WITH NEGATIVE IMPLICATIONS ABOUT ONE POINT FOUR BILLION DOLLARS OF DEBT AND PREFERRED IS AFFECTED S. AND P. SAID THE CREDITWATCH PLACEMENT REFLECTS ITS CONCERN OVER THE IMPACT OF DEPRESSED OIL PRICES ON MAXUS'S ALREADY WEAK BALANCE SHEET S. AND P. SAID MAXUS'S CASH FLOW IS NOT EXPECTED TO COVER NEAR TERM CAPITAL SPENDING AND FIXED CHARGES AND ACCESS TO CAPITAL MARKETS WILL BE NEEDED FOR FUNDING REQUIREMENTS MAXUS COULDN'T BE REACHED FOR COMMENT THE UNITED AUTO WORKERS STRUCK GENERAL MOTORS CORPORATION'S PICKUP TRUCK PLANT IN SHREVEPORT LOUISIANA IN A CLASH OVER G. M.'S CAMPAIGN TO BOOST PRODUCTIVITY IN ADDITION THE AUTO MAKER SAID IT WILL SHUT A PARTS PLANT IN CONNECTICUT AND PUT A FACTORY IN OHIO ON THREE YEAR PROBATION THE SHREVEPORT STRIKE AND G. M.'S DECISION TO SHUTTER ITS ONE HUNDRED FIVE YEAR OLD BRISTOL CONNECTICUT BEARING FACTORY UNDERSCORE THE PAIN THE NUMBER ONE AUTO MAKER FACES AS IT STRAINS TO MAKE GOOD ON PRESIDENT JOHN F. SMITH JUNIOR'S PROMISE TO MAKE NORTH AMERICAN OPERATIONS PROFITABLE THIS YEAR G. M. HAS LOST MORE THAN SEVENTEEN BILLION DOLLARS IN ITS CORE DOMESTIC BUSINESS NOT COUNTING RETIREE MEDICAL CHARGES SINCE JANUARY NINETEEN NINETY EARLIER THIS WEEK STEPHEN P. YOKICH THE U. A. W.'S TOP G. M. NEGOTIATOR WARNED HE COULD USE A STRIKE AT SHREVEPORT AS A QUOTE SHOT ACROSS THE BOW QUOTE TO WARN THE COMPANY AGAINST TRYING TO MOVE TOO FAR TOO FAST IN ITS CRUSADE TO SLASH LABOR COSTS THE SHREVEPORT FACTORY WHICH EMPLOYS TWO THOUSAND THREE HUNDRED HOURLY WORKERS IS THE SOLE SOURCE OF TWO HOT SELLING G. M. COMPACT PICKUP TRUCKS THE CHEVROLET S. TEN AND G. M. C. SONOMA ANALYSTS SAID THE STRIKE COULD COST G. M. BETWEEN TWO MILLION DOLLARS AND THREE MILLION DOLLARS A DAY BUT G. M. HAS ADEQUATE INVENTORY OF THE NEW MODELS FOR NOW MR. YOKICH SAID HE MAY TURN UP THE PRESSURE NEXT ON G. M.'S PARTS MAKING OPERATIONS WHICH ARE SCRAMBLING TO COMPETE WITH RIVALS WITH LOW LABOR COSTS SOME TWENTY PERCENT OF G. M.'S REMAINING PARTS OPERATIONS COULD FACE SHUTDOWN OR SALE IF THEY DON'T BECOME PROFITABLE BY THE END OF THIS YEAR G. M.'S DRIVE TO CLOSE ITS LABOR PRODUCTIVITY GAP WITH RIVAL FORD MOTOR COMPANY COULD MEAN MORE BAD NEWS FOR PLANTS LIKE THE BRISTOL FACILITY WHERE G. M. WILL ELIMINATE FIVE HUNDRED THIRTY SIX JOBS BY THE END OF THIS YEAR THEY'RE SAYING WE STARVED YOU TO DEATH NOW WE'LL CLOSE THE COFFIN SAID ROGER CHASSE PRESIDENT OF THE BRISTOL U. A. W. LOCAL AN ADDITIONAL ONE THOUSAND FIVE HUNDRED JOBS AT A BEARING PLANT IN SANDUSKY OHIO COULD BE LOST WITHIN THREE YEARS UNLESS THE U. A. W. AND MANAGEMENT COOPERATE TO MAKE THE BUSINESSES THERE COMPETITIVE NEGOTIATIONS FOR A NEW LOCAL CONTRACT AT SANDUSKY ARE CONTINUING A G. M. SPOKESMAN SAID SEPARATELY A SMALL ONE HUNDRED FIFTY WORKER BEARING PLANT IN CADIZ SPAIN WILL SHUT IN NINETEEN NINETY FIVE AS PLANNED G. M. SAID IT DECIDED TO SHUT THE BRISTOL AND CADIZ PLANTS AFTER FAILING TO FIND A BUYER FOR ITS WORLD WIDE BEARING BUSINESS DURING A SEARCH THAT BEGAN IN AUGUST NINETEEN NINETY TWO A BID BY BRISTOL WORKERS TO BUY THEIR PLANT WAS REJECTED MR. CHASSE SAID WHETHER G. M. CAN AVOID A COSTLY BATTLE OVER PRODUCTIVITY COULD DEPEND ON WHETHER MR. SMITH AND MR. YOKICH CAN USE THEIR PERSONAL RAPPORT AS THE FOUNDATION FOR A SETTLEMENT MR. YOKICH IS GENEROUS IN HIS PRAISE FOR MR. SMITH THE G. M. PRESIDENT IN TURN IS TRYING TO KEEP MR. YOKICH BETTER INFORMED THAN IN THE PAST ABOUT G. M.'S RESTRUCTURING MOVES AND HAS SOLICITED THE U. A. W. OFFICIAL'S IDEAS FOR IMPROVING G. M. OPERATIONS THE SHREVEPORT STRIKE PROBABLY WON'T MAKE A MAJOR DENT IN G. M.'S IMPROVING FINANCIAL RESULTS SAID ANALYST WENDY NEEDHAM OF SMITH BARNEY SHEARSON WHO EXPECTS G. M. TO POST PROFITS IN EXCESS OF ONE BILLION DOLLARS FOR THE FOURTH QUARTER AS WELL AS FOR THE FIRST QUARTER BUT THE RISK OF RUNNING SHORT OF A HOT SELLING MODEL CLEARLY MAKES G. M. EXECUTIVES NERVOUS WE CAN'T KEEP UP WITH DEMAND FOR THE NINETY FOUR SONOMA SMALL PICKUP SAID ROY S. ROBERTS VICE PRESIDENT IN CHARGE OF THE G. M. C. TRUCK MARKETING DIVISION WE'VE TAKEN MORE ORDERS FOR IT IN THE LAST SIX MONTHS THAN WE SOLD ALL OF LAST YEAR HOPEFULLY SANITY WILL PREVAIL AND WE CAN CONTINUE TO PRODUCE GREAT TRUCKS FOR A HOT MARKET MEXICAN STOCKS FELL ON MONDAY BY THE BIGGEST AMOUNT IN MORE THAN FOUR YEARS VOLUME WAS ONE HUNDRED THIRTY THREE POINT NINE MILLION SHARES AN ARTICLE YESTERDAY SAID INCORRECTLY THAT THE DECLINE WAS THE MARKET'S BIGGEST EVER AND IT MISSTATED VOLUME AT TWO POINT SIX MILLION SHARES THE MUTUAL FUND SCORECARD IN MONDAY'S EDITION CONSISTED OF GINNIE MAE FUNDS THE TABLE WAS INCORRECTLY IDENTIFIED AS SECTOR FUNDS DUE TO A COMPUTER PROGRAMMING ERROR WHEN RODMAN AND RENSHAW CAPITAL GROUP INCORPORATED'S FORMER CHAIRMAN KURT KARMIN CEDED THE CHIEF EXECUTIVE OFFICER'S POST TO ANOTHER COMPANY OFFICIAL IN NOVEMBER THE ACTION WASN'T PART OF AN ACQUISITION AGREEMENT BY WHICH ABACO GRUPO FINANCIERO S. A. DE CV SUBSEQUENTLY ACQUIRED A FIFTY ONE PERCENT STAKE IN THE BROKERAGE HOUSE AN ARTICLE YESTERDAY INCORRECTLY SAID THE TWO DEVELOPMENTS WERE LINKED THE NEW BLUE CHIP ECONOMIC INDICATORS FORECAST THAT THE U. S. ECONOMY WILL GROW THREE PERCENT IN NINETEEN NINETY FOUR AFTER INFLATION IS ONE TENTH OF A PERCENTAGE POINT HIGHER THAN LAST MONTH'S NOT A PERCENTAGE POINT HIGHER AS REPORTED IN AN ARTICLE YESTERDAY WAUSAU PAPER MILLS COMPANY'S STOCK CLOSED AT THIRTY ONE AND ONE HALF IN MONDAY'S NASDAQ TRADING UP THREE QUARTERS OR TWO POINT FOUR PERCENT AFTER ADJUSTING FOR THE RECENTLY DISTRIBUTED FOUR FOR THREE STOCK SPLIT THE COMPANY WAS INCORRECTLY LISTED AS A PRICE PERCENTAGE LOSER IN YESTERDAY'S EDITION BECAUSE OF A DATABASE ERROR PERSONAL BANKRUPTCIES ALMOST NEVER ASSUME THE DIMENSIONS OF CORPORATE REORGANIZATIONS BUT THEY ARE BIG BUSINESS NONETHELESS AND LAWYERS ARE NOW BATTLING SOME UPSTART COMPETITORS FOR THE PROFITS MOST OF THE COMPETITORS ARE PARALEGALS WHO FILL OUT BANKRUPTCY FORMS AT CUT RATE PRICES WHERE AN ATTORNEY GENERALLY WOULD CHARGE UPWARD OF ONE THOUSAND ONE HUNDRED DOLLARS FOR A SO CALLED CHAPTER THIRTEEN PERSONAL BANKRUPTCY PETITION A PARALEGAL'S FEES MIGHT START AT TWO HUNDRED DOLLARS PEOPLE IN THE FIELD ESTIMATE THAT HUNDREDS OF SUCH DISCOUNT SERVICES EXIST ALTHOUGH NO ONE IS SURE OF THE PRECISE NUMBER IT'S CLEAR THAT THE BUSINESS HAS EXPANDED RAPIDLY AS THE NUMBER OF PERSONAL BANKRUPTCIES HAS CLIMBED FACED WITH SUCH PRICE COMPETITION THE BANKRUPTCY BAR HAS LAUNCHED A COUNTERATTACK THAT INCLUDES LOBBYING FOR LEGISLATION ON CAPITOL HILL AND PARALEGALS CLAIM MOUNTING FRIVOLOUS LEGAL CHALLENGES TO PARALEGALS' FEES IN INDIVIDUAL CASES SPECIFICALLY THE PARALEGALS SAY BANKRUPTCY TRUSTEES WHO MONITOR ALL CASES AND OFTEN DOUBLE AS PRACTICING BANKRUPTCY LAWYERS ARE FREQUENTLY FILING FEE CHALLENGES AS A FORM OF HARASSMENT IN A MOTION FILED LAST YEAR IN FLORIDA A TRUSTEE CONTENDED THAT PARALEGALS WHO ARE NOT LAWYERS SHOULD GET PAID ONLY FOR THE TYPING AND PHOTOCOPYING THEY DO WHEN FILLING OUT BANKRUPTCY FORMS THAT LEVEL OF WORK THE TRUSTEE SAID WAS WORTH ABOUT HALF THE THREE HUNDRED DOLLARS THAT A PARALEGAL CHARGED IF THE PARALEGAL DID ANYTHING MORE THAN MERE TYPING THE TRUSTEE SAID THE PARALEGAL ENGAGED IN QUOTE UNAUTHORIZED PRACTICE OF LAW QUOTE WHICH CAN TRIGGER FINES JAIL TIME AND AN INJUNCTION SHUTTING DOWN THE BUSINESS THE TRUSTEE MIAMI ATTORNEY ROBERT L. ROTH SAYS HE SCRUTINIZES FEES OF ATTORNEYS AS WELL AS PARALEGALS UNSCRUPULOUS PARALEGALS SOLICIT PEOPLE WHO ARE BEING THREATENED WITH FORECLOSURE HE SAYS ADVERTISING LOW RATES BUT ULTIMATELY CHARGING THOUSANDS OF DOLLARS ONE PARALEGAL IN HIS AREA IS EVEN A DISBARRED NEW YORK ATTORNEY HE SAYS THERE'S NO NATIONWIDE MOVEMENT THERE'S BEEN NO TALK AT ANY OF OUR CONVENTIONS OF GOING AFTER PARALEGALS MR. ROTH SAYS THERE'S BEEN TALK OF UNAUTHORIZED PRACTICE OF LAW THERE'S BEEN TALK OF THE DAMAGE DONE BUT LEGAL CONSUMER GROUPS SUCH AS WASHINGTON BASED HALT SAY SUCH A CAMPAIGN EXISTS SAN FRANCISCO PARALEGAL ALLAN H. ROSENTHAL A BOARD MEMBER OF THE CALIFORNIA ASSOCIATION OF INDEPENDENT PARALEGALS SAYS TRUSTEES STARTED CHALLENGING PARALEGAL FEES AFTER A NINETEEN NINETY TWO ARTICLE ABOUT THE TACTIC IN AN INDUSTRY TRADE PUBLICATION THE CLIENTS ARE NOT CLAMORING FOR THIS RELIEF HE SAYS AND THE VAST VAST MAJORITY OF PARALEGAL PREPARED BANKRUPTCIES GO WITHOUT A HITCH HE SAYS IN CALIFORNIA EVEN AN ATTORNEY AFFILIATED LEGAL SERVICE HAS RUN AFOUL OF A BANKRUPTCY TRUSTEE AT ATTORNEY ASSISTED LEGAL CENTERS A TWENTY OFFICE CHAIN BASED IN TORRANCE PARALEGALS INTERVIEW CLIENTS TAKE MESSAGES FROM CREDITORS DRAW UP DOCUMENTS AND DELIVER THEM TO THE COURTHOUSE ATTORNEYS ARE ON HAND TO ANSWER TACTICAL QUESTIONS BANKRUPTCY TRUSTEE AND SAN DIEGO LAWYER GERALD H. DAVIS SAID IN A RECENT CASE THAT THE CHAIN SHOULD CHARGE ONLY TWENTY FIVE DOLLARS AN HOUR THE COST OF SIMPLY TYPING UP FORMS YOU'RE EITHER AN ATTORNEY OR YOU'RE NOT AN ATTORNEY HE SAID YOU CAN'T BE BOTH THE CHAIN WHICH CHARGES ABOUT THREE HUNDRED DOLLARS FOR A SIMPLE BANKRUPTCY IS CONTESTING MR. DAVIS'S MOTION SKIRMISHES BETWEEN ATTORNEYS AND ALTERNATIVE LEGAL SERVICES ARE PLAYING OUT IN OTHER AREAS OF LAW TOO BUT THE BANKRUPTCY BAR IS ESPECIALLY AGGRESSIVE GROUPS IN OTHER FIELDS THAT DO WORK SUCH AS THAT PERFORMED BY ATTORNEY ASSISTED LEGAL CENTERS FOR INSTANCE HAVE FOUND SUPPORT FROM ATTORNEY TRADE ASSOCIATIONS ON CAPITOL HILL MEANWHILE THE NATIONAL ASSOCIATION OF CONSUMER BANKRUPTCY ATTORNEYS IS PUSHING LEGISLATION THAT WOULD ESSENTIALLY PUT BANKRUPTCY RELATED PARALEGAL SERVICES OUT OF BUSINESS THE MCLEAN VIRGINIA TRADE ASSOCIATION WANTS BANKRUPTCY LAWS CHANGED TO PROHIBIT PARALEGALS FROM GETTING PAID FOR ANY SERVICE OTHER THAN TYPING THE PROPOSED LEGISLATION ALSO WOULD BAR PARALEGALS FROM AMONG OTHER THINGS USING QUOTE LEGAL QUOTE OR QUOTE PARALEGAL QUOTE IN THEIR COMPANY NAMES CONSUMER DEBTOR ATTORNEYS HAVE A PREDISPOSITION TO WANT TO PROTECT PEOPLE SAYS IKE SHULMAN THE LOBBYING GROUP'S PRESIDENT HE ADDS THAT CONSUMERS SHOULD REALIZE THEY CAN PAY BANKRUPTCY ATTORNEY FEES IN INSTALLMENTS THE UNAFFORDABILITY OF LAWYERS THAT DOESN'T APPLY IN BANKRUPTCY HE SAYS THE LEGISLATION WHICH WAS INTRODUCED LAST YEAR IS EXPECTED TO BE PURSUED AGGRESSIVELY WHEN CONGRESS RECONVENES A FEDERAL JUDGE FOUND U. S. AIR NEGLIGENT IN A NINETEEN NINETY TWO JET CRASH THAT KILLED TWENTY SEVEN PEOPLE AT NEW YORK'S LA GUARDIA AIRPORT EARLY LAST YEAR FEDERAL INVESTIGATORS CONCLUDED THAT THE CREW ON U. S. AIR'S FLIGHT FOUR HUNDRED FIVE TO CLEVELAND FAILED TO DETECT ICE ON THE WINGS CAUSING THE AIRCRAFT TO LOSE CONTROL QUICKLY AND PLUNGE INTO FRIGID WATERS DURING A FAILED TAKEOFF FROM LA GUARDIA SIX WEEKS INTO A TRIAL BROUGHT BY SURVIVORS OF THE CRASH AND FAMILIES OF PEOPLE WHO DIED U. S. DISTRICT JUDGE THOMAS LAMBROS IN CLEVELAND ISSUED A DIRECTED VERDICT AGAINST U. S. AIR A UNIT OF U. S. AIR GROUP INCORPORATED OF ARLINGTON VIRGINIA THE RULING MEANS THE PLAINTIFFS CAN BE AWARDED COMPENSATORY DAMAGES THE AMOUNT OF EACH AWARD WILL BE DETERMINED INDIVIDUALLY LATER A U. S. AIR SPOKESMAN SAID THE COMPANY DOESN'T PLAN TO APPEAL THE VERDICT WE HAVE ALWAYS MAINTAINED THAT WE ARE RESPONSIBLE FOR REASONABLE COMPENSATORY DAMAGES HE SAID BECAUSE THE ACTIONS OF THE EMPLOYEES WERE INCORRECT THE JURY IN THE TRIAL WILL NOW BEGIN CONSIDERING WHETHER TO AWARD PUNITIVE DAMAGES TO THE PLAINTIFFS IN JULY NINETEEN NINETY TWO A FEW MONTHS AFTER THE U. S. AIR CRASH THE FEDERAL AVIATION ADMINISTRATION ISSUED NEW PROCEDURES FOR DEICING LARGE COMMERCIAL AIRLINERS NOTED THE FEDERAL APPEALS COURT IN NEW YORK APPROVED A DISCOUNTED SETTLEMENT OF ASBESTOS CLAIMS BY THREE GROUPS OF PLAINTIFFS AND THE MANVILLE PERSONAL INJURY SETTLEMENT TRUST THE DECISION REJECTED A CHALLENGE BY OTHER GROUPS OF CLAIMANTS TO THE SETTLEMENT WHICH WAS APPROVED BY U. S. DISTRICT JUDGE JACK B. WEINSTEIN LAST JULY THE DEAL ALLOWS THE PAYMENT OF BETWEEN THREE HUNDRED MILLION DOLLARS AND THREE HUNDRED FIFTY MILLION DOLLARS TO SOME ELEVEN THOUSAND CLAIMANTS IN THE THREE GROUPS REFLECTING A TWENTY FIVE PERCENT DISCOUNT FROM PRIOR JUDGMENTS TO WHICH THEY WERE ENTITLED ACCORDING TO JAMES L. STENGEL OF DONOVAN LEISURE NEWTON AND IRVINE WHICH REPRESENTS THE TRUST MICHAEL J. MCCARTHY CONTRIBUTED TO THIS ARTICLE BELL ATLANTIC CORPORATION AND TELE COMMUNICATIONS INCORPORATED SAID THEY PLAN AN INFORMATION NETWORK THAT COULD LINK MORE THAN TWENTY SIX THOUSAND PUBLIC SCHOOLS THE COMPANIES WHICH PLAN TO SPEND FIFTEEN BILLION DOLLARS OVER THE NEXT FIVE YEARS ON A NATIONAL VIDEO INFORMATION NETWORK SAID THE SERVICE WOULD INCLUDE ITS EDUCATION CONNECTION TWO WAY INTERACTION SYSTEM WHICH IS EXPECTED EVENTUALLY TO ALLOW STUDENTS TO COMMUNICATE WITH TEACHERS WITH A VIDEO COMPUTER SYSTEM USING ELECTRONIC MAIL MESSAGES THE COMPANIES SAID THEY PLAN TO OFFER THE SERVICE INITIALLY AT NO CHARGE TO SCHOOLS IN ORDER TO PROMOTE EMERGING COMMUNICATIONS TECHNOLOGIES THE SYSTEM INITIALLY WILL INCLUDE FREE EDUCATIONAL CABLE TELEVISION PROGRAMMING FREE ACCESS TO CERTAIN EXISTING DATA SERVICES SUCH AS THE ELECTRONIC NEWS SERVICE X. PRESS SLASH X. CHANGE AND LINKS TO PERMIT ACCESS TO THE INTERNET AND OTHER COMPUTER NETWORKS EVENTUALLY SCHOOLS WILL BE EXPECTED TO PAY MONTHLY FEES BASED ON THE SERVICES SELECTED COSTS MAY BEGIN AT TWENTY DOLLARS MONTHLY A BELL ATLANTIC SPOKESMAN SAID THE NETWORK WILL BE OFFERED INDEPENDENTLY BY BELL ATLANTIC A PHILADELPHIA BASED REGIONAL TELECOMMUNICATIONS COMPANY AND T. C. I. DENVER THE NATION'S LARGEST CABLE T. V. COMPANY BELL ATLANTIC HAS AGREED TO ACQUIRE T. C. I. IN A STOCK SWAP VALUED AT MORE THAN TWENTY BILLION DOLLARS THE JOINT EFFORT IS A PRELUDE TO THAT ACQUISITION JOHN A. CAPSTICK WAS NAMED CHAIRMAN OF THIS CONSUMER ELECTRONICS RETAILER MR. CAPSTICK FIFTY THREE YEARS OLD AN INTERTAN DIRECTOR SUCCEEDS JOHN H. MCDANIEL SEVENTY FIVE WHO IS RETIRING AS CHAIRMAN BUT REMAINING A DIRECTOR THE NATO ALLIANCE IS SET TO GIVE WESTERN EUROPE THE INDEPENDENT MILITARY CAPABILITY THAT FRANCE HAS BEEN SEEKING FOR MORE THAN TWENTY YEARS MARKING A STRIKING RAPPROCHEMENT BETWEEN FRANCE AND THE U. S. AT THE CONCLUSION OF ITS TWO DAY SUMMIT HERE TODAY THE NORTH ATLANTIC TREATY ORGANIZATION IS EXPECTED TO APPROVE TWO IMPORTANT INITIATIVES THAT AMOUNT TO A FUNDAMENTAL SHIFT IN THE STRUCTURE OF THE ALLIANCE ALTHOUGH TAKEN IN THE SHADOW OF CONTROVERSIES OVER BOSNIA AND OVER WHETHER TO EXTEND THE ALLIANCE TO EASTERN EUROPE THE INITIATIVES ARE NONETHELESS BEING HAILED BY NATO OFFICIALS AS A HISTORIC TURNING POINT REVERSING A LONGSTANDING POLICY THE U. S. IS GIVING EXPLICIT POLITICAL RECOGNITION TO THE VALIDITY OF AN INDEPENDENT EUROPE ONLY DEFENSE AND IS READY FOR THE FIRST TIME TO ALLOW THE EUROPEANS TO USE NATO EQUIPMENT AND RESOURCES FOR THEIR OWN MILITARY OPERATIONS EUROPEAN DEFENSE EFFORTS ARE CURRENTLY CONCENTRATED IN THE WESTERN EUROPEAN UNION THE MILITARY ARM OF THE TWELVE NATION EUROPEAN UNION AS WELL AS A NEWLY CONSTITUTED FRANCO GERMAN CORPS BASED IN STRASBOURG FRANCE THE SUMMIT IS ALSO SET TO CREATE A FLEXIBLE NATO MILITARY ENTITY DUBBED THE QUOTE COMBINED JOINT TASK FORCE QUOTE THAT COULD CONDUCT PEACEKEEPING HUMANITARIAN AND OTHER MILITARY OPERATIONS WITH OR WITHOUT U. S. PARTICIPATION SET UP WITH AN EYE ON REGIONAL TURMOIL IN EASTERN EUROPE THE TASK FORCE COULD SERVE UNDER THE COMMAND OF EITHER THE W. E. U. OR NATO UNDER THE PLAN NATO TRAINED AND INTEGRATED MILITARY FORCES AND ASSETS CAN BE PULLED OUT OF THE COMMAND AND ACTUALLY ASSIGNED AND DEPLOYED IN EUROPEAN ONLY CONTINGENCIES SAID LES ASPIN THE U. S. DEFENSE SECRETARY IN RETURN FRANCE IS FORMALLY SOFTENING ITS OWN OBJECTIONS TO TAKING PART IN NATO'S INTEGRATED MILITARY COMMAND WHICH THE FRENCH LEFT IN NINETEEN SIXTY SIX FRENCH OFFICIALS SAY THE NATION'S DEFENSE MINISTER AND CHIEF OF STAFF WILL PARTICIPATE IN OPERATIONAL MEETINGS AT NATO HEADQUARTERS BUT ON A CASE BY CASE BASIS WHEN FRENCH TROOPS ARE INVOLVED RATHER THAN AS A GENERAL RULE TOP FRENCH OFFICIALS HAVE ALREADY BEEN SITTING IN ON NATO DISCUSSIONS ABOUT BOSNIA FOR SEVERAL MONTHS BUT THE POLICY IS ONLY NOW BEING MADE FORMAL THE RAPPROCHEMENT BETWEEN FRANCE AND THE U. S. TRADITIONAL RIVALS INSIDE NATO IS A STARTLING CHANGE FOR YEARS DURING THE COLD WAR FRANCE CANVASSED FOR A STRONGER EUROPEAN PILLAR IN NATO ONLY TO BE REBUFFED BY THE U. S. WHICH WORRIED THAT SUCH A MOVE COULD LEAD TO THE DISINTEGRATION OF THE WESTERN ALLIANCE TODAY HOWEVER OFFICIALS OF BOTH SIDES SAY MILITARY CONTACTS BETWEEN THE TWO NATIONS ARE BETTER THAN THEY HAVE BEEN FOR YEARS NOT LEAST BECAUSE OF A CLOSE WORKING RELATIONSHIP BETWEEN GENERAL JOHN M. SHALIKASHVILI AND ADMIRAL JACQUES LANXADE THE TOP OFFICERS OF THE TWO NATIONS THE CHANGES RESULT FROM THE SWEEPING CHANGE IN WESTERN STRATEGIC AND POLITICAL THINKING SINCE THE COLLAPSE OF THE SOVIET UNION INSTEAD OF A MONOLITHIC AND MENACING COMMUNIST BLOC THE WESTERN ALLIANCE NOW PERCEIVES ITS ENEMY TO BE INSTABILITY AND REGIONAL CONFLICT AS EXEMPLIFIED BY THE CIVIL WAR IN FORMER YUGOSLAVIA WE HAVE TO RECOGNIZE THAT THIS NEW SECURITY CHALLENGE REQUIRES A RANGE OF RESPONSES DIFFERENT FROM THE ONES OF THE PAST PRESIDENT CLINTON TOLD HIS NATO COLLEAGUES YESTERDAY THAT IS WHY OUR ADMINISTRATION HAS BROKEN WITH PREVIOUS AMERICAN ADMINISTRATIONS IN GOING BEYOND WHAT OTHERS HAVE DONE TO SUPPORT EUROPEAN EFFORTS TO ADVANCE THEIR OWN SECURITY AND INTERESTS THE NOTION OF EUROPEANS BEING ABLE TO DO MORE FOR THEIR OWN DEFENSE WITH AMERICAN BLESSING REFLECTS BOTH THE DIMINISHING U. S. ROLE IN EUROPE AND THE COMMON SECURITY ASPIRATIONS OF WESTERN EUROPE AS LAID DOWN IN THE MAASTRICHT TREATY THAT DOCUMENT WHICH TOOK EFFECT IN NOVEMBER CREATES THE CONDITIONS FOR THE EMERGENCE OF A COMMON FOREIGN AND SECURITY POLICY IN WESTERN EUROPE THE EXACT USES OF THE INDEPENDENT EUROPEAN MILITARY CAPABILITY REMAIN THEORETICAL AND SOME DETAILS ABOUT HOW IT WILL WORK IN PRACTICE STILL NEED TO BE SETTLED BUT GREAT PAINS HAVE BEEN TAKEN TO ENSURE THAT THE NEW INITIATIVES ARE ACCEPTABLE TO ALL SIDES INCLUDING BRITAIN WHICH IS THE MOST IMPORTANT EUROPEAN MILITARY POWER ALONGSIDE FRANCE BUT FAR MORE SKEPTICAL THAN PARIS ABOUT THE USES AND NEED FOR PAN EUROPEAN FORCES THE DIPLOMATIC FORMULA BEING USED TO DESCRIBE THE INITIATIVES IS SEPARABLE BUT NOT SEPARATE CAPABILITY A CHOICE OF WORDS DESIGNED TO UNDERSCORE THAT NATO AND THE W. E. U. WILL COMPLEMENT RATHER THAN COMPETE WITH EACH OTHER THE KEY FOR SKEPTICS IS THAT NATO AND HENCE THE U. S. WILL CONTINUE TO BE CLOSELY INVOLVED IN ANY MILITARY DECISIONS BY THE EUROPEANS MR. CLINTON TOLD THE ALLIES THAT NATO MUST REMAIN THE LINCHPIN OF OUR SECURITY AND FRENCH PRESIDENT FRANCOIS MITTERRAND SAID IN A WEEKEND INTERVIEW THAT CLOSE COORDINATION BETWEEN THE W. E. U. AND NATO WAS VITAL NONETHELESS THERE IS SOME LINGERING CONCERN ABOUT THE INITIATIVES THEY COULD SPEED THE DISENGAGEMENT OF THE U. S. FROM EUROPE WHICH NOT EVEN THE MAVERICK FRENCH WANT TO SEE WORSE THEY COULD REPLACE STRONG AMERICAN LEADERSHIP THAT HAS KEPT THE PEACE FOR FOUR DECADES WITH THE SORT OF FRACTIOUS DEBATE AND INDECISION THAT CONTINUE TO DOG EUROPEAN UNITY YUGOSLAVIA HAS BEEN THE FIRST TEST AND SO FAR EUROPE HASN'T PRODUCED MUCH PROOF OF ITS COHERENCE THE QUESTION OF WHAT FURTHER MILITARY ACTION IF ANY TO TAKE IN BOSNIA WAS HOTLY DEBATED ON THE FIRST DAY OF THE NATO SUMMIT WITH PRESIDENT MITTERRAND INSISTING THAT THE CURRENT STATUS HAD TO CHANGE BUT THERE REMAINS SUBSTANTIAL DISAGREEMENT BETWEEN BRITAIN AND FRANCE WHICH BOTH HAVE TROOPS IN BOSNIA OVER WHETHER TO INCREASE FORCES THERE OR WHETHER TO START AERIAL BOMBARDMENTS OF SERB POSITIONS THE NATO SUMMIT AS EXPECTED FORMALLY APPROVED THE IDEA OF QUOTE PARTNERSHIP FOR PEACE QUOTE A U. S. INSPIRED PROPOSAL THAT OFFERS MILITARY COOPERATION TO EAST EUROPEAN NATIONS BUT STOPS SHORT OF LETTING THEM JOIN THE WESTERN ALLIANCE IN THE NEAR FUTURE EAST EUROPEAN NATIONS SUCH AS POLAND AND THE CZECH REPUBLIC UNNERVED BY THE RISE OF MILITANT NATIONALISTS IN RUSSIA HAD HOPED TO BE GIVEN A MORE PRECISE TIMETABLE AND SET OF CRITERIA FOR JOINING NATO THEY HAVE GIVEN THE PROPOSAL AT BEST ONLY LUKEWARM SUPPORT HOWEVER SECRETARY OF STATE WARREN CHRISTOPHER TOLD REPORTERS THAT EAST EUROPEAN NATIONS WERE SHOWING A VERY HIGH DEGREE OF ACCEPTANCE OF THE PLAN HE SAID HE EXPECTED THAT POLAND HUNGARY THE CZECH REPUBLIC AND SLOVAKIA WOULD ALL SIGN ON THIS WEEK GENERAL ELECTRIC COMPANY SAID ITS G. E. INDUSTRIAL AND POWER SYSTEMS UNIT RECEIVED A THIRTY FIVE MILLION DOLLAR ORDER FROM CAROLINA POWER AND LIGHT COMPANY RALEIGH N. C. FOR REPLACEMENT PARTS AND ADDITIONAL COMPONENTS FOR THREE G. E. NUCLEAR STEAM TURBINE ROTORS G. ALLAN GABORIC AGE FIFTY ONE WAS NAMED GENERAL MANAGER OF THE VAN AND REEFER PRODUCTS UNIT OF THIS MANUFACTURER OF TRUCK TRAILERS AND EQUIPMENT PRIOR TO THIS APPOINTMENT MR. GABORIC HELD VARIOUS EXECUTIVE POSITIONS WITH THE CARRIER SUBSIDIARY OF UNITED TECHNOLOGIES CORPORATION MICHAEL F. G. ASHBY WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPUTER NETWORKING CONCERN FILLING A LONG VACANT POST MR. ASHBY FORTY FIVE YEARS OLD HAS BEEN CHIEF FINANCIAL OFFICER SINCE SEPTEMBER NINETEEN NINETY TWO HE FILLS A POST LAST HELD BY LYLE ALTMAN WHO WAS ELECTED PRESIDENT IN NINETEEN EIGHTY ONE AND CHAIRMAN IN NINETEEN NINETY JOHN L. SPRAGUE SIXTY TWO YEARS OLD WAS NAMED A DIRECTOR OF THIS SEMICONDUCTOR CONCERN INCREASING THE BOARD'S SIZE TO SEVEN MEMBERS MR. SPRAGUE A CONSULTANT RETIRED IN NINETEEN EIGHTY SEVEN FROM THE COMPANY HE FOUNDED SPRAGUE ELECTRIC COMPANY A PIONEER IN SILICON TECHNOLOGY JOHN L. SPRAGUE WAS NAMED A DIRECTOR OF CALIFORNIA MICRO DEVICES CORPORATION A MAKER OF THIN FILM SILICON BASED INTEGRATED CIRCUITS HE RETIRED IN NINETEEN EIGHTY SEVEN AS CHIEF EXECUTIVE OFFICER OF A COMPANY HIS FATHER FOUNDED SPRAGUE ELECTRIC COMPANY PRIMARILY A MAKER OF CAPACITORS IN TUESDAY'S WHO'S NEWS COLUMN CALIFORNIA MICRO WAS MISIDENTIFIED AS A SEMICONDUCTOR CONCERN AND MR. SPRAGUE AS SPRAGUE ELECTRIC'S FOUNDER WILLIAM S. LEE SIXTY FOUR YEARS OLD PRESIDENT CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF THE ELECTRIC UTILITY WILL RETIRE IN JUNE MR. LEE SAID HE WOULD NAME A SUCCESSOR ON JANUARY TWENTY FIFTH AFTER THE COMPANY'S BOARD MEETING MR. LEE WILL REMAIN IN HIS PRESENT DUTIES UNTIL HIS RETIREMENT HE JOINED DUKE POWER IN NINETEEN FIFTY FIVE AND HAS SERVED AS C. E. O. FOR TWELVE YEARS BERNARD VONDERSCHMITT SIXTY NINE YEARS OLD AND HENK J. EVENHUIS FORTY ONE WERE ELECTED DIRECTORS OF THIS MAKER OF SEMICONDUCTOR TESTING EQUIPMENT MR. VONDERSCHMITT PRESIDENT OF XILINX INCORPORATED AND MR. EVENHUIS CHIEF FINANCIAL OFFICER OF LAM RESEARCH CORPORATION FILL VACANCIES ON CREDENCE'S NINE MEMBER BOARD TODD S. MYHRE FORTY NINE YEARS OLD WAS NAMED PRESIDENT OF THIS SEMICONDUCTOR EQUIPMENT CONCERN MR. MYHRE WHO RETAINS HIS POST AS GENUS'S CHIEF OPERATING OFFICER SUCCEEDS WILLIAM W. R. ELDER FIFTY FIVE WHO WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER B. FRANKLIN SKINNER SIXTY TWO YEARS OLD AND H. CAL TRUNER FIFTY THREE WERE ELECTED TO THE BOARD OF THIS RESTAURANT OPERATOR AND FRANCHISER INCREASING IT TO TWELVE MEMBERS MR. SKINNER IS A FORMER CHAIRMAN OF BELLSOUTH COMMUNICATIONS INCORPORATED AND MR. TURNER IS CHAIRMAN AND CHIEF EXECUTIVE OF DOLLAR GENERAL CORPORATION AUTHENTIC FITNESS CORPORATION VAN NUYS CALIFORNIA ANNOUNCED A TWO FOR ONE STOCK SPLIT EFFECTIVE FEBRUARY TENTH FOR SHAREHOLDERS OF RECORD JANUARY TWENTIETH THE COMPANY MANUFACTURES SWIMWEAR AND FITNESS CLOTHING AND OPERATES EIGHT FITNESS ORIENTED RETAIL STORES IT PLANS TO OPEN FORTY MORE STORES THIS YEAR INTEL CORPORATION SAID IT HAS ASSEMBLED A GROUP OF COMPANIES THAT PLANS TO CREATE RULES FOR HOW PERSONAL COMPUTERS WORK TOGETHER TO ALLOW USERS TO HOLD CONFERENCES ON THEIR MACHINES INTEL SAID IT EXPECTS THE GROUP BY MID NINETEEN NINETY FOUR TO COMPLETE A SPECIFICATION FOR THE INTERACTION OF P. C.S SOFTWARE COMMUNICATIONS NETWORKS AND OTHER ELEMENTS NEEDED FOR QUOTE DESKTOP VIDEO CONFERENCING QUOTE THE SPECIFICATION WILL ALSO COVER WHAT INTEL CALLS DOCUMENT CONFERENCING WHICH PERMITS MANY P. C. USERS TO HOLD COMPUTER MEETINGS IN WHICH THEY WORK SIMULTANEOUSLY ON DOCUMENTS THEY PASS AMONG THEMSELVES THE P. C. INDUSTRY HAS LONG SOUGHT TECHNOLOGIES TO ALLOW DESKTOP MACHINES TO BE USED AS TOOLS THAT ALLOW DISTANTLY SEPARATED CONFEREES TO SEE EACH OTHER ON THEIR COMPUTER SCREENS WHILE THEY TALK AND SHARE COMPUTER DATA BUT AS THOSE TECHNOLOGIES DEVELOP THERE HASN'T BEEN A SINGLE DOMINANT STANDARD THAT WOULD ALLOW COMPANIES TO MAKE SURE THEIR PRODUCTS ALL WORK TOGETHER IN SUCH CONFERENCES INTEL WHICH HAS BEEN DEVELOPING VIDEOCONFERENCING PRODUCTS FOR SEVERAL YEARS SAW A WEAKNESS IN THE LACK OF A STANDARD THERE WAS TOO LARGE A HOLE IN THE P. C. FOR THIS TO BECOME A PERSONAL CONFERENCING TOOL SAID PATRICK GELSINGER GENERAL MANAGER OF INTEL'S PERSONAL CONFERENCING DIVISION THE INTEL LED TEAM OF THIRTEEN COMPANIES WOULD SEEK TO CREATE AN INDUSTRY STANDARD BY PROVIDING RULES FOR HOW P. C.S INTERACT OVER VARIOUS TRANSMISSION MEDIA SUCH AS PHONE LINES COMPUTER NETWORKS AND FIBER OPTIC LINES MR. GELSINGER SAID THE GROUP INCLUDES MANY LEADERS IN COMPUTERS AND COMMUNICATIONS AMONG THEM COMPAQ COMPUTER CORPORATION COMPRESSION LABS INCORPORATED PICTURETEL CORPORATION LOTUS DEVELOPMENT CORPORATION WORDPERFECT CORPORATION NOVELL INCORPORATED AND NORTHERN TELECOM NOTABLY ABSENT IS MICROSOFT CORPORATION WITH WHICH INTEL IS WORKING ON MANY OTHER P. C. RELATED SPECIFICATIONS INCLUDING SOME FOR COMMUNICATIONS INTEL IS WORKING CLOSELY WITH MICROSOFT AND IS OPTIMISTIC THAT THE SOFTWARE MAKER WILL EVENTUALLY JOIN IN THE EFFORT MR. GELSINGER SAID MICROSOFT OFFICIALS COULDN'T BE REACHED FOR COMMENT ERIC GERSHMAN PRESIDENT AND FOUNDER OF PUBLISHED IMAGE HAS AN UNUSUAL CAREER GOAL HE WANTS TO ELIMINATE HIS JOB MR. GERSHMAN SET IT LAST SUMMER WHEN HE ORGANIZED HIS SMALL BOSTON CONCERN INTO FOUR QUOTE SELF MANAGED TEAMS QUOTE A HOT CONCEPT IN WHICH WORKERS LARGELY OPERATE WITHOUT BOSSES TODAY THE NEWSLETTER PUBLISHER'S TWENTY SIX EMPLOYEES SET THEIR OWN WORK SCHEDULES PREPARE THEIR OWN BUDGETS AND RECEIVE GROUP BONUSES BASED ON THEIR TEAM'S PERFORMANCE MANAGERS RENAMED COACHES PRIMARILY PLAY ADVISORY ROLES IN RECENT YEARS SELF MANAGED WORK TEAMS HAVE BECOME VERY POPULAR AMONG BIG CORPORATIONS AS A WAY TO ELIMINATE MIDDLE MANAGERS WHILE IMPROVING MORALE AND BOOSTING PRODUCTIVITY BUT SUCH TEAMS REMAIN RARE AMONG SMALL BUSINESSES MOST SMALL BUSINESS OWNERS DON'T SEE HOW THE IDEA COULD BENEFIT THEM AND THEIR ENTERPRISES BUT MR. GERSHMAN SAYS CREATION OF THE TEAMS HAS HALTED CHRONICALLY HIGH EMPLOYEE TURNOVER HELPED THE COMPANY KEEP CUSTOMERS AND INCREASED PROFIT IT ALSO HAS HELPED PUBLISHED IMAGE INCORPORATED TO MANAGE ITS RAPID GROWTH BY BETTER FOCUSING ON CLIENTS' NEEDS HE ADDS COMPANY REVENUE DOUBLED TO FOUR MILLION DOLLARS IN NINETEEN NINETY THREE AND ITS PROFIT MARGIN INCREASED TO TWENTY PERCENT FROM THREE PERCENT IN NINETEEN NINETY TWO MR. GERSHMAN SAYS MORE THAN A THIRD OF LAST YEAR'S PROFIT MARGIN GAIN CAME DURING THE FOURTH QUARTER HE NOTES AFTER THE TEAMS WERE IMPLEMENTED HE EXPECTS REVENUE OF SIX MILLION DOLLARS THIS YEAR EVENTUALLY THE THIRTY THREE YEAR OLD ENTREPRENEUR ADDS I HOPE THIS BUSINESS CAN RUN WITHOUT ME SMALL FIRMS OFTEN FEAR THAT FORMALIZING TEAMWORK WOULD INCREASE BUREAUCRACY RATHER THAN FIGHT IT BY BREAKING DOWN WALLS BETWEEN DEPARTMENTS SAYS AUBREY DANIELS A TUCKER GEORGIA MANAGEMENT CONSULTANT WHO MAINLY ADVISES SMALLER CONCERNS OWNERS THINK IT IS DIFFICULT CONCEPT TO ADMINISTER AND WHEN THEY TALK TO SOME LARGER COMPANIES THAT USE TEAMS THEY SEE THAT IT HAS BEEN BURDENSOME DOCTOR DANIELS CONTINUES EVEN ENTREPRENEURS WHO FAVOR SELF MANAGED TEAMS OFTEN LACK THE TIME OR RESOURCES TO IMPLEMENT THEM SAYS EDWARD LAWLER THE THIRD DIRECTOR OF THE UNIVERSITY OF SOUTHERN CALIFORNIA'S CENTER FOR EFFECTIVE ORGANIZATIONS YOU HAVE TO SERIOUSLY REDESIGN THE ORGANIZATION TO MAKE THEM MOST EFFECTIVE MR. GERSHMAN SAYS HIS INTEREST IN SELF MANAGED TEAMS AND IN RUNNING HIS OWN COMPANY BEGAN AFTER COLLEGE WHEN HE JOINED A BOSTON AD AGENCY AS A COPYWRITER I ALWAYS FELT I HAD BETTER WAYS OF DOING THINGS THAN MY BOSS HE SAYS SO MUCH SO HE ADDS THAT HE WAS FIRED AFTER TWO YEARS MR. GERSHMAN SAW AN OPPORTUNITY TO START A SMALL BUSINESS SIX YEARS LATER WHILE PRODUCING A CUSTOMER NEWSLETTER AS MARKETING DIRECTOR FOR A SMALL STOCK BROKERAGE CONCERN IN NEW YORK WITH BILLIONS OF DOLLARS POURING INTO MUTUAL FUNDS HE SAYS HE ANTICIPATED BIG DEMAND FOR SHAREHOLDER NEWSLETTERS AMONG MUTUAL FUND COMPANIES IN NINETEEN EIGHTY EIGHT MR. GERSHMAN USED FIVE THOUSAND DOLLARS IN SAVINGS TO FORM PUBLISHED IMAGE BY NINETEEN NINETY ONE THE ENTREPRENEUR SAYS THE COMPANY WAS GENERATING SIX HUNDRED THOUSAND DOLLARS IN ANNUAL SALES BY PRODUCING PUBLICATIONS FOR SHAREHOLDERS OF ELEVEN MUTUAL FUND CONCERNS YET IT WAS ON THE BRINK OF FAILURE HE RECALLS PUBLISHED IMAGE'S RAPID GROWTH HAD COME AT THE EXPENSE OF WORKER MORALE PRODUCT QUALITY AND CUSTOMER RETENTION EMPLOYEE TURNOVER WAS RUNNING FIFTY PERCENT A YEAR READERS WERE COMPLAINING ABOUT NUMEROUS FACTUAL ERRORS AND THE COMPANY WAS LOSING A THIRD OF ITS CLIENTS EVERY YEAR MR. GERSHMAN SAYS MR. GERSHMAN SAYS THAT TO SAVE PUBLISHED IMAGE HE BEGAN AN OVERHAUL OF THE ORGANIZATION HE SAYS HE TIED EVERYONE'S PAY TO PERFORMANCE EXPANDED STAFF TRAINING AND TIGHTENED DEADLINES BUT BY EARLY LAST YEAR MORALE REMAINED LOW AND TURNOVER DANGEROUSLY HIGH MR. GERSHMAN RECOLLECTS WE HAD A COMPANY WHOSE EMPLOYEES BELIEVED THEIR JOB WAS TO PLEASE THEIR BOSS INSTEAD OF THE CUSTOMER WE NEEDED TO RADICALLY CHANGE THE ORGANIZATION QUOTE HE SAYS IN MAY MR. GERSHMAN READ ABOUT SELF MANAGED TEAMS AND DECIDED THE IDEA COULD COMPLETE HIS TURNAROUND HE DEVELOPED A TWO HUNDRED FIFTY PAGE DOCUMENT TO GUIDE PUBLISHED IMAGE'S REORGANIZATION INTO SELFMANAGED TEAMS HE BROKE THE NEWS LAST AUGUST STAFF MEMBERS RECEIVED RED T. SHIRTS EMBLAZONED WITH THE SLOGAN THE UNITED DAY IT WAS THE DAY WE BLEW UP THE OLD COMPANY AND TOTALLY CHANGED PEOPLE'S THINKING ABOUT WHAT THEIR JOB IS MR. GERSHMAN SAYS NOW PUBLISHED IMAGE CONSISTS OF FOUR LARGELY AUTONOMOUS TEAMS EACH WITH ITS OWN CLIENTS AND STAFF OF SALES EDITORIAL AND PRODUCTION WORKERS WHILE EACH MEMBER SPECIALIZES IN A SKILL EACH PERFORMS ANY FUNCTION TO MEET DAILY DEADLINES IN ADDITION TO HER MAIN TASKS AS AN ACCOUNT EXECUTIVE TWENTY SEVEN YEAR OLD SHELLEY DANSE SAYS SHE DOES RESEARCH FOR WRITERS PROOFREADS COPY AND HELPS TO LAY OUT ART WE WORK LIKE A UNIT AND PITCH IN TO GET OUT ON TIME WHATEVER HAS TO GET DONE SHE SAYS SUCH JOB SHARING BROADENS EACH MEMBER'S PERSPECTIVE AND IMPROVES PLANNING IF THE TEAM GETS BACKED UP MS. DANSE HOLDS OFF BRINGING IN NEW BUSINESS THE APPROACH ALSO INCREASES EFFICIENCY WHERE MS. DANSE ONCE HAD TO MEET WITH EACH DEPARTMENT AFTER SIGNING UP NEW CUSTOMERS TEAM MEMBERS ARE INVOLVED IN THE SALES PROCESS FROM THE BEGINNING SINCE AUGUST THERE HAS BEEN NO EMPLOYEE TURNOVER AND PUBLISHED IMAGE IS LOSING CUSTOMERS AT A RATE OF LESS THAN FIVE PERCENT A YEAR MR. GERSHMAN SAYS SELF MANAGED WORK TEAMS MEAN WE HAVE ONE GROUP OF PEOPLE WHO KNOW ALL FACETS OF OUR JOB AND WE CAN CONTACT ANY OF THEM DURING THE PROCESS SAYS CLIENT PETER HERLIHY VICE PRESIDENT OF MUTUAL FUND MARKETING AT FLEET FINANCIAL GROUP INCORPORATED PROVIDENCE R. I. FLEET USED TO COMPLAIN ABOUT FACTUAL ERRORS IN FOUR PUBLISHED IMAGE NEWSLETTERS BUT NO LONGER GRIPES ACCORDING TO MR. GERSHMAN PUBLISHED IMAGE COACHES LIKE TWENTY EIGHT YEAR OLD DANA ADAMS WHO RAN ITS NOW ABOLISHED PRODUCTION DEPARTMENT RATE THE TEAMS FOR TIMELINESS AND ACCURACY A MONTHLY SCORE OF NINETY OR HIGHER ENTITLES MEMBERS TO BIANNUAL BONUSES WHICH CAN EQUAL UP TO FIFTEEN PERCENT OF AN EMPLOYEE'S BASE PAY PUBLISHED IMAGE SAYS IT EXPECTS TO PAY SUCH BONUSES FOR THE FIRST TIME NEXT MONTH MR. ADAMS SAYS HE SPENDS THE REST OF HIS TIME OFFERING ADVICE RATHER THAN GIVING ORDERS AND WHILE MR. ADAMS FIELDS TWENTY FIVE TO THIRTY QUESTIONS A DAY FROM TEAM MEMBERS HE EXPECTS HE WILL STOP HEARING FROM THEM SOMEDAY LIKE PUBLISHED IMAGE'S FOUNDER MR. ADAMS SAYS MY JOB IS BASICALLY TO ELIMINATE MY JOB THE SUPREME COURT AGREED TO CONSIDER WHETHER CONGRESS CAN REINSTATE CERTAIN FEDERAL SECURITIES FRAUD LAWSUITS THAT WERE DISMISSED IN RESPONSE TO A NINETEEN NINETY ONE HIGH COURT RULING FOR PROCEDURAL REASONS THE DECISION WHICH INVOLVES THE DEADLINE FOR FILING FRAUD SUITS UNDER A WIDELY USED PROVISION KNOWN AS SECTION TEN B. OF THE SECURITIES EXCHANGE ACT OF NINETEEN THIRTY FOUR PROBABLY WON'T AFFECT MANY DISPUTES DIRECTLY BUT THE JUSTICES COULD USE THE CASE TO DECIDE A BASIC CONSTITUTIONAL QUESTION HOW FAR MAY CONGRESS GO IN RETROACTIVELY MODIFYING OR REVERSING FINAL JUDGMENTS BY FEDERAL COURTS THE ISSUE HAS ARISEN SINCE THE COUNTRY'S EARLY YEARS IN A WIDE VARIETY OF CONTEXTS INCLUDING COMMERCIAL LABOR AND INDIAN RIGHTS DISPUTES THE GENERAL RULE IS THAT CONGRESS SHOULDN'T INTERFERE WITH CONCLUSIVE JUDICIAL DECISIONS BUT THE SUPREME COURT HAS ALLOWED EXCEPTIONS IN SOME CIRCUMSTANCES IN THE CASE NOW AT ISSUE CONGRESS RESUSCITATED HUNDREDS OF FRAUD SUITS FILED UNDER SECTION TEN B. THE SUITS WERE BLOCKED AFTER THE SUPREME COURT IN JUNE NINETEEN NINETY ONE IMPOSED UNIFORM TIME LIMITS ON THE FILING OF SUITS UNDER THE LAW UP TO THEN LOWER COURTS TYPICALLY HAD APPLIED THE STATUTE OF LIMITATIONS OF THE STATE WHERE A FRAUD ALLEGEDLY OCCURRED THE STATE DEADLINES OFTEN WERE MORE FAVORABLE TO PLAINTIFFS UNHAPPY THAT THE HIGH COURT'S RULING WOULD BLOCK PENDING SECURITIES FRAUD SUITS CONGRESS PASSED A LAW IN DECEMBER NINETEEN NINETY ONE THAT SAID SUITS BEGUN BEFORE THE SUPREME COURT DECISION SHOULD STILL BE GOVERNED BY THE APPLICABLE STATE TIME LIMITS MOREOVER CONGRESS REINSTATED SUITS THAT HAD BEEN DISMISSED IF A REQUEST FOR REINSTATEMENT WAS FILED WITHIN SIXTY DAYS WHEN PLAINTIFFS TOOK ADVANTAGE OF THE LAW SOME DEFENDANTS OBJECTED THAT THEIR LEGAL VICTORIES WERE BEING IMPROPERLY REVOKED BY THE LEGISLATIVE BRANCH THE CASE THE SUPREME COURT AGREED TO HEAR COMMENCED IN MARCH NINETEEN NINETY ONE FILED BY PACIFIC MUTUAL LIFE INSURANCE COMPANY AGAINST A GROUP OF MAJOR WALL STREET INVESTMENT AND ACCOUNTING FIRMS AMONG OTHERS IT CONCERNED ALLEGED MISREPRESENTATIONS IN CONNECTION WITH PACIFIC MUTUAL'S PURCHASE OF EIGHT MILLION DOLLARS IN SECURITIES IN NINETEEN EIGHTY SEVEN AMONG THE DEFENDANTS WERE THE ACCOUNTING FIRM ERNST AND YOUNG AND THE SECURITIES FIRMS MORGAN STANLEY GROUP INCORPORATED SALOMON INCORPORATED AND GOLDMAN SACHS AND COMPANY THE SUIT MET THE TIME LIMIT UNDER THE RELEVANT TEXAS LAW BUT IT WAS DISMISSED AFTER THE SUPREME COURT'S JUNE NINETEEN NINETY ONE RULING BECAUSE PACIFIC MUTUAL HADN'T MET THE NEW MORE STRINGENT FEDERAL TIME LIMIT NAMELY THAT SUCH SUITS MUST BE FILED WITHIN ONE YEAR OF WHEN A PLAINTIFF DISCOVERED THE ALLEGED FRAUD OR WITHIN THREE YEARS AFTER THE FRAUD OCCURRED THE INSURER DIDN'T APPEAL BUT WHEN CONGRESS PASSED THE DECEMBER NINETEEN NINETY ONE LAW PACIFIC MUTUAL SOUGHT TO HAVE THE SUIT REINSTATED THE FEDERAL APPEALS COURT IN NEW ORLEANS EVENTUALLY DID SO THE NEW ORLEANS APPEALS COURT RULED THAT CONGRESS HADN'T VIOLATED THE CONSTITUTIONAL SEPARATION OF POWERS BY REINSTATING SUCH CASES QUOTE THE CONSTITUTION DOES NOT FORBID CONGRESS FROM MANDATING THAT A CONTROVERSY CONTINUES WHEN THE COURT SAYS THAT IT IS DONE QUOTE THE APPELLATE COURT SAID THE COURT ALSO REJECTED THE DEFENDANTS' ARGUMENT THAT THE LAW DENIED THEIR RIGHT TO DUE PROCESS CONGRESS MAY MODIFY LITIGANTS' RIGHTS IF THERE IS A RATIONAL BASIS FOR THE LEGISLATION THE COURT SAID BUT IN A SEPARATE CASE THE FEDERAL APPEALS COURT IN CINCINNATI SAID THE STATUTE WAS AN UNCONSTITUTIONAL LEGISLATIVE INFRINGEMENT OF JUDICIAL AUTHORITY THE SUPREME COURT PRESUMABLY WILL RESOLVE THE CONFLICT FIRST REPUBLICBANK CORPORATION VERSUS PACIFIC MUTUAL LIFE INSURANCE COMPANY SEPARATELY THE HIGH COURT AGREED TO RESOLVE A CRITICAL AMBIGUITY IN FEDERAL BANKRUPTCY LAW AFFECTING THE RELATIVE POWER OF INSOLVENT COMPANIES' SHAREHOLDERS AND CREDITORS THE PROBLEM ARISES FREQUENTLY UNDER CHAPTER ELEVEN OF THE BANKRUPTCY CODE WHICH ALLOWS AN INSOLVENT CONCERN TO SEEK TEMPORARY PROTECTION FROM ITS CREDITORS WHILE IT DESIGNS A REORGANIZATION PLAN CHAPTER ELEVEN IS SUPPOSED TO FOSTER CONSENSUS ON HOW TO WORK OUT SUCH REORGANIZATIONS BUT THE STATUTE PERMITS DEBTORS UNDER CERTAIN CIRCUMSTANCES TO SEEK COURT APPROVAL FOR PLANS OPPOSED BY SOME CREDITORS FOR EXAMPLE CHAPTER ELEVEN STATES THAT A DISPUTED PLAN MUST PAY AN OBJECTING GROUP OF CREDITORS IN FULL BEFORE IT ALLOWS ANYONE WITH A LEGALLY INFERIOR CLAIM TO RECEIVE OR RETAIN ANY ASSETS SOME COURTS HAVE ALLOWED AN EXCEPTION TO THIS SO CALLED ABSOLUTE PRIORITY RULE WHEN SHAREHOLDERS OF A DEBTOR COMPANY PROPOSE TO INJECT NEW MONEY IN EXCHANGE FOR RETAINING OWNERSHIP OF THE REORGANIZED FIRM DECLINED AS EXPECTED TO REVIEW A LOWER COURT RULING THAT THE NORTH AMERICAN FREE TRADE AGREEMENT WAS EXEMPT FROM FORMAL ENVIRONMENTAL REVIEW A FEDERAL APPEALS COURT IN WASHINGTON SAID LAST SEPTEMBER THAT THE CLINTON ADMINISTRATION DIDN'T NEED TO PREPARE AN ENVIRONMENTAL IMPACT STATEMENT FOR THE TRADE PACT A REQUIREMENT THAT COULD HAVE DELAYED PASSAGE OF THE SINCE ENACTED TREATY THE ADMINISTRATION ARGUED IN ITS SUPREME COURT BRIEF THAT ENACTMENT OF THE PACT MADE THE DISPUTE MOOT PUBLIC CITIZEN VERSUS CO STEEL INCORPORATED SAID IT WILL CONDUCT A FEASIBILITY STUDY INTO BUILDING A WIRE ROD MINIMILL IN THE U. S. MIDWEST AT A COST OF ABOUT TWO HUNDRED MILLION DOLLARS THE MILL WHICH WOULD BE CO STEEL'S FIFTH WOULD RAISE THE COMPANY'S ROD AND BAR CAPACITY BY ONE MILLION TONS TO ABOUT FIVE MILLION TONS A YEAR THE STEEL COMPANY SAID THE STUDY WILL BE COMPLETED BY THE FALL THE PRINCIPALS AT FRANK A. SWEENEY AND ASSOCIATES A CONSULTING FIRM IN DEMAREST N. J. WEREN'T VERY GOOD AT THEIR PREVIOUS JOBS THEY WERE SENT TO PRISON FOR MAIL FRAUD DRUG DEALING AND BANK ROBBERY BUT THEY DID GET VALUABLE EXPERIENCE IN THE SLAMMER AND LIKE MANY ANOTHER OUTPLACED WHITE COLLAR WORKER THEY ARE TRYING TO SELL THEIR EXPERTISE AS CONSULTANTS FOR TWO HUNDRED DOLLARS A CLIENT THEY GIVE ADVICE ON SERVING TIME QUOTE OUR CONSULTANTS ARE GRADUATES OF THE FEDERAL PRISON SYSTEM QUOTE THE FIRM BOASTS IN ADS IN U. S. A. TODAY AND THE NATIONAL LAW JOURNAL GOING TO FEDERAL PRISON FOR THE FIRST TIME WE WILL TELL YOU WHAT TO EXPECT AND HOW TO SURVIVE MR. SWEENEY SAYS HE AND HIS TWO PARTNERS KNOW A LOT ABOUT THAT MR. SWEENEY HIMSELF WHO IS FIFTY YEARS OLD HAS SERVED TIME IN SEVENTEEN FEDERAL INSTITUTIONS ON TWO CONVICTIONS FOR MAIL FRAUD AND FIREARMS VIOLATIONS HE ALSO SPENT SEVEN YEARS IN NEW JERSEY PRISONS AFTER WOUNDING A POLICEMAN IN NINETEEN SIXTY SIX WITH A MACHINE GUN A HORRIBLE HORRIBLE ACCIDENT HE SAYS THE MOST RECENT CONVICTION FOUR YEARS AGO FOR MAIL FRAUD INVOLVED RUNNING MAIL ORDER ADS IN A GUN MAGAZINE OFFERING TO SELL EXOTIC GUNS HE DIDN'T OWN FRANK A. SWEENEY AND ASSOCIATES WAS LAUNCHED TWO MONTHS AGO MR. SWEENEY SAYS HE WAS INSPIRED BY A NEWSPAPER STORY THAT QUOTED ONE OF THE LOS ANGELES POLICE SENTENCED TO JAIL IN THE RODNEY KING CASE AS BEING TERRIFIED OF WHAT WOULD HAPPEN TO HIM IN PRISON MR. SWEENEY SAYS HIS KNOWLEDGE OF THE SYSTEM HELPS HIM ADVISE INDICTED CRIMINALS WHAT PRISON THEY ARE LIKELY TO GO TO AND WHAT LIFE THERE IS LIKE HE SAYS HE CAN HELP WRITE LETTERS TO ARRANGE TRANSFERS TO A PRISON CLOSER TO A PRISONER'S HOME WE ADVISE OUR CLIENTS HOW TO MANIPULATE THE BUREAU OF PRISONS SO THEY CAN LIVE AS COMFORTABLY AS POSSIBLE HE SAYS BUT MOSTLY HE PROMISES REASSURANCE ABOUT THE UNKNOWN WORLD THE CRIMINAL IS GOING TO ENTER THE BIGGEST FEAR IS UNFOUNDED HE SAYS QUOTE NEVER ONCE DID I SEE HOMOSEXUAL RAPE QUOTE IN FEDERAL PRISON HE SAYS BUT THERE IS DANGER OF RACIAL VIOLENCE WE TELL PEOPLE NOT TO USE RACIAL INVECTIVE HE SAYS THUS FAR BUSINESS HAS BEEN SLOW MR. SWEENEY SAYS HE HAS HAD JUST TWENTY SEVEN PAYING CUSTOMERS WHICH ISN'T NEARLY ENOUGH TO PAY FOR THE ADS HOWEVER HE SAYS HE HAS GOTTEN LETTERS FROM SEVERAL PRISONERS WANTING ADVICE ON HOW TO SET UP SIMILAR BUSINESSES WHEN THEY GET OUT RODMAN AND RENSHAW CAPITAL GROUP INCORPORATED'S NEW MEXICO BASED MAJORITY OWNER SET ABOUT INSTALLING ITS OWN MANAGEMENT TEAM AT THE BROKERAGE HOUSE DISMISSING FOUR TOP OFFICIALS AND ACCEPTING THE RESIGNATION OF RODMAN'S CHAIRMAN AS WELL THE MANAGEMENT CHANGES RODMAN NOTED QUOTE CAME AT THE REQUEST QUOTE OF ABACO CASA DE BOLSA THE BROKERAGE UNIT OF ABACO GRUPO FINANCIERO S. A. DE CV THE HOUSECLEANING COMES AS LESS THAN A SURPRISE AFTER A PERIOD OF INTERNAL TURMOIL RODMAN LAST YEAR PUT ITSELF UP FOR POSSIBLE AUCTION AND IN LATE DECEMBER ABACO PAID TWENTY FOUR POINT EIGHT MILLION DOLLARS TO ACQUIRE AN ABOUT FIFTY ONE PERCENT STAKE IN THE REGIONAL CONCERN'S THROUGH A TEN DOLLAR AND FIFTY CENT A SHARE TENDER OFFER ABACO NOW CONTROLS A MAJORITY OF THE CHICAGO COMPANY'S BOARD SEATS AS PART OF THE ACQUISITION AGREEMENT CHAIRMAN KURT KARMIN A FORMER DREXEL BURNHAM LAMBERT SENIOR VICE PRESIDENT IN NOVEMBER HANDED OVER THE CHIEF EXECUTIVE OFFICER'S POST TO NORMAN MAINS THE COMPANY'S PRESIDENT YESTERDAY MR. KARMIN CEDED THE CHAIRMAN'S JOB TO JORGE LANKENAU THE CHAIRMAN OF ABACO GRUPO FINANCIERO MR. KARMIN WILL REMAIN AS AN ACCOUNT EXECUTIVE AND A BOARD MEMBER RODMAN SAID IN ADDITION A NUMBER OF OTHER TOP OFFICIALS WERE DISMISSED MR. MAINS WHO HAD BEEN SERVING AS PRESIDENT C. E. O. AND CHIEF OPERATING OFFICER EXECUTIVE VICE PRESIDENTS VICTOR CHIGAS AND MARK GRANT AND GREGORY QUNLIVAN WHO HAD BEEN SERVING AS SECRETARY GENERAL COUNSEL AND EXECUTIVE VICE PRESIDENT JOSEPH P. SHANAHAN THE PRESIDENT OF ABACO'S U. S. BROKERAGE UNIT ABACO INTERNATIONAL WAS NAMED A RODMAN VICE PRESIDENT WITH THE POWERS OF CHIEF EXECUTIVE OFFICER ON AN INTERIM BASIS THE COMPANY SAID IT WILL SEARCH OUTSIDE RODMAN FOR A NEW C. E. O. AND CHIEF OPERATING OFFICER WHEN RODMAN AND RENSHAW CAPITAL GROUP INCORPORATED'S FORMER CHAIRMAN KURT KARMIN CEDED THE CHIEF EXECUTIVE OFFICER'S POST TO ANOTHER COMPANY OFFICIAL IN NOVEMBER THE ACTION WASN'T PART OF AN ACQUISITION AGREEMENT BY WHICH ABACO GRUPO FINANCIERO S. A. DE CV SUBSEQUENTLY ACQUIRED A FIFTY ONE PERCENT STAKE IN THE BROKERAGE HOUSE AN ARTICLE YESTERDAY INCORRECTLY SAID THE TWO DEVELOPMENTS WERE LINKED BRIAN J. FINNERAN WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER NEWLY CREATED POSITIONS AT THE MARKETER OF ANNUITIES AND OTHER INSURANCE PRODUCTS AND MUTUAL FUNDS HE ALSO WAS ELECTED A DIRECTOR SUCCEEDING PHILLIP SLOANE FIFTY TWO YEARS OLD WHO RESIGNED MR. FINNERAN FIFTY PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT OF THE COMPANY'S WHOLLY OWNED SUBSIDIARY JAMES MITCHELL AND COMPANY WHERE HE WAS APPOINTED PRESIDENT AND CHIEF OPERATING OFFICER ALSO NEW POSITIONS JAPAN'S RULING COALITION IS AIMING FOR A FINAL SHOWDOWN ON A PACKAGE OF POLITICAL REFORM BILLS NEXT WEEK A CABINET SPOKESMAN SAID MONDAY THAT LEADERS OF THE SEVEN PARTY ALLIANCE AGREED TO PUSH FOR A VOTE ON THE PACKAGE IN THE UPPER HOUSE OF THE DIET ON JANUARY NINETEENTH TO MAKE THAT POSSIBLE THE PARTIES ON MONDAY OVERCAME NOISY OPPOSITION TO SET THE FINAL REFORM COMMITTEE HEARING FOR NEXT MONDAY THE BILLS THE TOP PRIORITY OF THE COALITION PASSED THE LOWER HOUSE OF THE DIET IN NOVEMBER BUT HAVE BEEN STALLED IN THE UPPER HOUSE EVER SINCE IN SETTING THE DEADLINE PRIME MINISTER MORIHIRO HOSOKAWA SEEMS MORE CONFIDENT OF WINNING APPROVAL OF THE DRASTIC OVERHAUL OF JAPAN'S ELECTORAL SYSTEM BUT THE CHANCES FOR PASSAGE REMAIN UNCLEAR EVEN SOME MEMBERS OF THE COALITION OPPOSE THE PROPOSALS MR. HOSOKAWA AND HIS AIDES HAVE SAID THEY ARE WILLING TO MAKE SOME CHANGES IN THE LEGISLATION TO WIN SUPPORT CABINET OFFICIALS SAY THAT IF THE REFORM PACKAGE IS PASSED NEXT WEEK THEY WILL QUICKLY TURN THEIR ATTENTION TO NEW MEASURES TO STIMULATE JAPAN'S FLAGGING ECONOMY MR. HOSOKAWA'S SPOKESMAN SAID THE GOVERNMENT WOULD TRY TO PREPARE SUCH A PACKAGE BY JANUARY TWENTIETH CURTIS L. HOSKINS CHIEF OPERATING OFFICER OF THIS ELECTRIC UTILITY WAS ALSO NAMED PRESIDENT THE FIFTY SIX YEAR OLD MR. HOSKINS SUCCEEDS DAVID H. WIGGS JUNIOR FORTY SIX WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER EL PASO ALSO NAMED EDUARDO A. RODRIQUEZ THIRTY EIGHT FORMERLY VICE PRESIDENT AS SENIOR VICE PRESIDENT AND GUILLERMO SILVA JUNIOR FORTY FORMERLY ASSISTANT SECRETARY AS SECRETARY THE U. S. ECONOMY IS EXPECTED TO GROW THREE PERCENT IN NINETEEN NINETY FOUR AND TWO POINT SEVEN PERCENT IN NINETEEN NINETY FIVE ACCORDING TO THE AVERAGE OF FORECASTS MADE BY ECONOMISTS SURVEYED MONTHLY BY THE BLUE CHIP ECONOMIC INDICATORS NEWSLETTER IF THE FORECASTERS ARE CORRECT NINETEEN NINETY FOUR WILL BE THE BEST YEAR FOR THE ECONOMY SINCE NINETEEN EIGHTY EIGHT WHEN IT GREW THREE POINT NINE PERCENT IN CONTRAST THE BLUE CHIP ECONOMISTS ANTICIPATE THAT JAPAN'S ECONOMY WILL GROW JUST ONE POINT THREE PERCENT IN NINETEEN NINETY FOUR AND GERMANY'S WILL GROW A MEAGER ZERO POINT SEVEN PERCENT THE LATEST NINETEEN NINETY FOUR FORECAST FOR THE U. S. IS ABOUT A PERCENTAGE POINT HIGHER THAN THE ONE MADE IN DECEMBER QUOTE STRENGTH IN HOUSING AUTOS AND OTHER CONSUMER DURABLES AS WELL AS BUSINESS SPENDING FOR PRODUCERS' DURABLE EQUIPMENT IS EXPECTED TO PERSIST IN THE NEW YEAR QUOTE THE NEWSLETTER NOTED THE BLUE CHIP ECONOMISTS NOW ESTIMATE THAT THE ECONOMY GREW AT A FOUR POINT TWO PERCENT ANNUAL RATE IN THE FOURTH QUARTER AND WILL GROW AT A THREE PERCENT PACE IN THE CURRENT QUARTER BUT THEY DON'T ANTICIPATE MUCH OF A DECLINE IN THE JOBLESS RATE PREDICTING THAT UNEMPLOYMENT LAST MEASURED AT SIX POINT FOUR PERCENT OF THE WORK FORCE WILL AVERAGE SIX POINT FOUR PERCENT THIS YEAR AND SIX POINT TWO PERCENT NEXT THE FIGURES ARE ADJUSTED FOR INFLATION THE FORECASTERS EXPECT CONSUMER PRICES TO RISE TWO POINT EIGHT PERCENT IN NINETEEN NINETY FOUR AND THREE POINT THREE PERCENT IN NINETEEN NINETY FIVE THE NEW BLUE CHIP ECONOMIC INDICATORS FORECAST THAT THE U. S. ECONOMY WILL GROW THREE PERCENT IN NINETEEN NINETY FOUR AFTER INFLATION IS ONE TENTH OF A PERCENTAGE POINT HIGHER THAN LAST MONTH'S NOT A PERCENTAGE POINT HIGHER AS REPORTED IN AN ARTICLE YESTERDAY PRESIDENT CLINTON ANNOUNCED AN AGREEMENT TO DISMANTLE THE NUCLEAR ARSENAL OF UKRAINE TAKING A STEP TOWARD RESOLVING ONE OF THE MOST PERILOUS SECURITY PROBLEMS LEFT FROM THE COLD WAR MARKING A MAJOR TRIUMPH OF HIS NINE DAY EUROPEAN TRIP MR. CLINTON SAID THE DEAL SIGNALS QUOTE A NEW ERA IN OUR RELATIONSHIP WITH UKRAINE QUOTE PRESIDENT CLINTON RUSSIAN PRESIDENT BORIS YELTSIN AND UKRAINIAN PRESIDENT LEONID KRAVCHUK WILL SIGN THE AGREEMENT IN MOSCOW FRIDAY HOWEVER THERE WERE SIGNS THAT UKRAINE'S PARLIAMENT WHICH HAS BLOCKED DISARMAMENT INITIATIVES OVER THE PAST TWO YEARS COULD FIGHT THIS AGREEMENT AS WELL UNDER THE ARRANGEMENT THE U. S. WILL PURCHASE URANIUM FROM UKRAINE AND ALSO PROVIDE THE COUNTRY WITH ECONOMIC ASSISTANCE WHILE THE WEAPONS WILL BE SHIPPED TO RUSSIA TO BE DESTROYED THE DEAL IS WORTH MORE THAN ONE BILLION DOLLARS TO UKRAINE COVERING URANIUM PURCHASES AND ECONOMIC ASSISTANCE CLINTON AIDES SAID MOST OF THE COSTS WOULD BE OFFSET WHEN THE U. S. ENRICHMENT CORPORATION A QUASIGOVERNMENTAL ENTITY PURCHASES THE HIGHLY ENRICHED URANIUM AND SELLS IT UKRAINE MUST MEET THE OBLIGATIONS OF A NINETEEN NINETY ONE U. S. SOVIET AGREEMENT TO REDUCE LONG RANGE MISSILES AND MUST DISMANTLE THEM WITHIN SEVEN YEARS BUT CLINTON AIDES PRIVATELY ACKNOWLEDGED THAT THEY HOPE THE TIMETABLE WILL BE SPEEDED UP PARTICULARLY FOR THE MOST DANGEROUS WEAPONS THE AGREEMENT COVERS ONE HUNDRED SEVENTY SIX INTERCONTINENTAL NUCLEAR MISSILES AND ABOUT ONE THOUSAND FIVE HUNDRED WARHEADS THAT WERE AIMED AT THE U. S. AS WELL AS ANOTHER THREE HUNDRED WARHEADS FROM AIR LAUNCHED CRUISE MISSILES AND BOMBERS SECRETARY OF STATE WARREN CHRISTOPHER SAID THE AGREEMENT WAS CLEARLY ONE OF THE MOST IMPORTANT NONPROLIFERATION STEPS THAT HAS BEEN TAKEN IN YEARS THE AGREEMENT PROVIDES UKRAINE WITH STANDARD SECURITY GUARANTEES FOR COUNTRIES THAT GIVE UP THEIR NUCLEAR WEAPONS AND PROMISES EXTENSIVE U. S. ECONOMIC ADVICE AND AID THE U. S. HAS ALREADY AGREED TO PROVIDE ONE HUNDRED SEVENTY FIVE MILLION DOLLARS IN AID FOR HELPING UKRAINE DISMANTLE NUCLEAR WEAPONS AS WELL AS ONE HUNDRED FIFTY FIVE MILLION DOLLARS IN ECONOMIC ASSISTANCE A SENIOR STATE DEPARTMENT OFFICIAL SAID THE U. S. WOULD CONSIDER RAISING THE AMOUNT OF ECONOMIC ASSISTANCE IF UKRAINE DEVELOPED A VIABLE ECONOMIC REFORM PLAN U. S. OFFICIALS SAID THE MAIN SIGNIFICANCE OF THE DEAL MAY BE TO GIVE UKRAINE A MORE STABLE AND AFFORDABLE SOURCE OF ENERGY WHICH NOW COMES MAINLY FROM RUSSIA UPGRADING THE COUNTRY'S CHERNOBYL STYLE NUCLEAR REACTORS AND REPROCESSING NUCLEAR FUEL FOR USE IN THE CIVIL ENERGY PROJECTS IS A MAIN FEATURE OF THE AGREEMENT THE REMOVAL OF THE MISSILES FROM UKRAINE WOULD SOOTHE A STRATEGIC HEADACHE OF GLOBAL PROPORTIONS BUT IMPLEMENTATION OF THE ACCORD IS STILL A QUESTION WHILE THERE ARE CONSIDERABLE ECONOMIC INCENTIVES FOR UKRAINE IN THE DEAL MANY MEMBERS OF THE COUNTRY'S PARLIAMENT SAY THAT LOSING THE WEAPONS WILL LEAVE UKRAINE VULNERABLE TO RUSSIA AT A TIME WHEN NATIONALISM THERE IS ON THE RISE EVERY PREVIOUS ATTEMPT TO REACH AGREEMENT ON THE ISSUE HAS BEEN STYMIED BY THE PARLIAMENT MR. CLINTON SAID PRESIDENT KRAVCHUK HAS SHOWN GREAT COURAGE IN THE LAST FEW MONTHS IN WORKING THROUGH THIS VERY DIFFICULT AND COMPLEX SET OF NEGOTIATIONS WITH US WE HAVE NO REASON TO DOUBT THE ABILITY OF THE PRESIDENT TO KEEP THE COMMITMENT THAT HE IS PREPARED TO MAKE BUT SOME OFFICIALS IN UKRAINE WERE QUESTIONING MR. KRAVCHUK'S AUTHORITY TO MAKE THE AGREEMENTS DMYTRO PAVLYCHKO CHAIRMAN OF THE PARLIAMENT'S FOREIGN AFFAIRS COMMITTEE SAID WE MUST WAIT AND SEE WHAT WILL BE AGREED TO MR. PAVLYCHKO SAID THAT THE QUESTION OF NUCLEAR WEAPONS CAN'T BE DECIDED IN ONE DOCUMENT AND ADDED THAT IF MR. KRAVCHUK AGREED TO ELIMINATE UKRAINE'S NUCLEAR WEAPONS IMMEDIATELY THE PARLIAMENT WILL GO BACK INTO SESSION ON THE TWENTIETH AND BEGIN TO THROW HIM OUT OPPOSITION LEADER VYACHESLAV CHORNOVIL TOLD THE INDEPENDENT NEWS AGENCY INTERFAX UKRAINE THAT MR. KRAVCHUK HAS NO AUTHORITY TO SIGN QUOTE INTER STATE DOCUMENTS CONCERNING NUCLEAR WEAPONS QUOTE AND THAT ANY AGREEMENTS HE SIGNS IN MOSCOW WOULD HAVE NO LEGAL FORCE EXPERTS ON THE REGION WARN THAT WITH UKRAINE'S ECONOMY NEAR COLLAPSE THE SITUATION THERE IS ANYTHING BUT PREDICTABLE INFLATION HAS RISEN TO FIFTY PERCENT A MONTH AND ATTEMPTS TO PRIVATIZE THE COUNTRY'S STATE OWNED ENTERPRISES HAVE STALLED THE DEAL ALSO FACES OPPOSITION IN RUSSIA MANY RUSSIANS CONSIDER UKRAINE THE BIRTHPLACE OF THE RUSSIAN EMPIRE AND HAVE NEVER ACCEPTED THE SEPARATION OF THE COUNTRY WITH ITS BELOVED BLACK SEA RESORTS FROM RUSSIA THE BLACK SEA FLEET IS ANOTHER PROBLEM AN AGREEMENT TO SPLIT IT BETWEEN THE TWO COUNTRIES HAS PROVEN NEARLY UNENFORCEABLE A LOT OF WORRIES REMAIN SAID GABRIEL SCHOENFELD EDITOR OF POST SOVIET PROSPECTS A RESEARCH JOURNAL OF THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON UKRAINE'S NEIGHBORS SAY THAT REMOVAL OF WEAPONS COULD ACTUALLY MAKE SOME OF THE COUNTRY'S SECURITY PROBLEMS WORSE BECAUSE IT COULD MAKE THE RUSSIANS MORE BOLD IN PRESSURING THE UKRAINIANS FOR CONCESSIONS ON ISSUES OF MUTUAL CONCERN THESE INCLUDE THE LARGE RUSSIAN POPULATION NUMBERING ABOUT ELEVEN POINT FOUR MILLION PEOPLE WHO MAKE UP A MAJORITY IN THE EASTERN PARTS OF THE COUNTRY SOME RUSSIANS THERE ARE PRESSING TO REUNITE WITH RUSSIA POLISH OFFICIALS SAY THE SUCCESS OF THE DEAL WILL DEPEND ON DEEP INVOLVEMENT OF THE U. S. AND WESTERN EUROPE IN GUARANTEEING UKRAINE'S SECURITY AND IT REMAINS TO BE SEEN WHETHER THE PROMISES UNDER THIS DEAL ARE STRONG ENOUGH TO ACHIEVE THAT ALL THE U. S. IS INTERESTED IN ARE THOSE DAMN MISSILES JERZY MILEWSKI FIRST DEPUTY DEFENSE MINISTER OF POLAND SAID IN A RECENT INTERVIEW TO CHANGE THE SITUATION IN UKRAINE THE WEST WILL HAVE TO MAKE IT CLEAR THAT IT CONSIDERS THE SOVEREIGNTY OF UKRAINE INVIOLABLE NATALIA A. FEDUSCHAK IN KIEV CONTRIBUTED TO THIS ARTICLE WESTERN GERMAN GROSS DOMESTIC PRODUCT DROPPED AN INFLATION ADJUSTED ONE POINT NINE PERCENT IN NINETEEN NINETY THREE CONFIRMING EXPECTATIONS OF THE DEEPEST ANNUAL CONTRACTION SINCE WESTERN GERMANY'S POSTWAR RECONSTRUCTION LEAKED FIGURES LATER CONFIRMED BY THE FEDERAL STATISTICS OFFICE ALSO SHOWED EASTERN GERMANY'S REGIONAL G. D. P. GREW SIX POINT THREE PERCENT LAST YEAR CONTINUING RECOVERY FROM ITS POSTUNIFICATION COLLAPSE IN NINETEEN NINETY G. D. P. MEASURES TOTAL OUTPUT OF GOODS AND SERVICES EXCLUDING FOREIGN INCOME FOR GERMANY AS A WHOLE THE COUNTRY'S RICHER WESTERN HALF STILL ACCOUNTED FOR NINETY ONE PERCENT OF NOMINAL G. D. P. TOTALING THREE POINT ONE TRILLION MARKS ONE POINT SEVEN NINE FIVE TRILLION DOLLARS IN NINETEEN NINETY THREE WHEN ADJUSTED FOR INFLATION TOTAL GERMAN OUTPUT SHOWED A ONE POINT THREE PERCENT DECLINE FROM A YEAR EARLIER THE WESTERN GERMAN FULL YEAR G. D. P. DECLINE WHICH EXCEEDED THE NINETEEN SEVENTY FIVE POSTWAR RECORD CONTRACTION OF ONE POINT FIVE PERCENT COINCIDED WITH ECONOMISTS' EXPECTATIONS THE STATISTICS OFFICE HAS YET TO RELEASE SEPARATE DATA FOR FOURTH QUARTER G. D. P. A THREATENED STRIKE AT GENERAL MOTORS CORPORATION'S ASSEMBLY PLANT IN SHREVEPORT LOUISIANA IS DESIGNED TO SEND THE MESSAGE THAT G. M. MUST RESOLVE DISPUTES AT SEVERAL OTHER TRUCK PLANTS THAT ARE HOLDING UP LOCAL CONTRACTS A TOP UNITED AUTO WORKERS OFFICIAL SAID STEPHEN P. YOKICH CALLED THE STRIKE THREAT A QUOTE SHOT ACROSS THE BOWS FOR THE ENTIRE TRUCK DIVISION QUOTE AFTER THE U. A. W. HAMMERS OUT LOCAL AGREEMENTS AT THE TRUCK PLANTS HE SAID THE UNION WILL TURN UP THE PRESSURE ON G. M.'S PARTS MAKING OPERATIONS WHICH ARE THREATENING U. A. W. WORKERS WITH JOB LOSSES UNLESS THEY MAKE CONCESSIONS LAST WEEK THE U. A. W. FORMALLY NOTIFIED G. M. THAT IT MIGHT STRIKE SHREVEPORT AS EARLY AS TEN A. M. TODAY WHICH WOULD CUT PRODUCTION OF THE HOT SELLING NEW COMPACT PICKUP TRUCK BUILT THERE G. M. OFFICIALS HAVE SAID THEY HOPE THE DISPUTE WILL BE RESOLVED WITHOUT A STRIKE COMPANY AND UNION BARGAINERS WERE MEETING YESTERDAY TO RESOLVE THE DISPUTE MR. YOKICH SAID SHREVEPORT WORKERS ARE UPSET BY G. M.'S EFFORTS TO CUT JOBS ON THE ASSEMBLY LINE TRYING TO FORCE A SPEEDUP HE SAID THE UNION ALSO WAS RILED BY G. M.'S ATTEMPT TO OUT SOURCE TO OUTSIDE CONTRACTORS WORK THAT HAD BEEN PERFORMED IN THE PLANT BY U. A. W. REPRESENTED WORKERS A GOOD RULE IN POLITICS IS THAT WHEN BARNEY FRANK AND NEWT GINGRICH AGREE ON SOMETHING IT'S TIME FOR SECOND THOUGHTS SO WITH EVERYONE SHOUTING FOR AN QUOTE INDEPENDENT COUNSEL QUOTE TO INVESTIGATE PRESIDENT AND HILLARY CLINTON'S WHITEWATER MESS WE'D LIKE TO EXPLAIN OUR DOUBTS WE BOW TO NO ONE IN OUR CONCERN OVER WHITEWATER AND MORE BROADLY OVER THE ARKANSAS POLITICAL MORES THAT HAVE MIGRATED TO WASHINGTON SURELY THIS IS A SUBJECT THAT NEEDS TO BE INVESTIGATED BY SOMEONE WITH THE POWER OF SUBPOENA THE PRESS IS DOING A GOOD JOB ON WHITEWATER AT THE MOMENT BUT CANNOT SUBPOENA DOCUMENTS OR FORCE PEOPLE TO TESTIFY UNDER OATH WE ALSO UNDERSTAND WHY GIVEN THE CURRENT STATE OF OUR POLITICAL CULTURE PEOPLE CLAMOR FOR AN INDEPENDENT ARCHANGEL TO SOLVE POLITICAL PROBLEMS BUT INDEPENDENT COUNSELS ARE TROUBLING PRECISELY BECAUSE THEY HAVE BECOME A DEVICE FOR LETTING OUR POLITICAL INSTITUTIONS SHIRK THEIR CONSTITUTIONAL RESPONSIBILITIES IN PARTICULAR WHERE IS THE CONGRESS THE WHITEWATER EPISODE IS MADE TO ORDER FOR CONGRESS'S CONSTITUTIONAL ROLE OF OVERSIGHT YET THE BANKING COMMITTEES THAT WERE ALL OVER NEIL BUSH AND CHARLEY KEATING ARE SUDDENLY SILENT ABOUT A FAILED S. AND L. THAT WAS OWNED BY A BUSINESS PARTNER OF THE PRESIDENT AND PAID HIS WIFE TWO THOUSAND DOLLARS A MONTH FOR LEGAL WORK SURELY CONGRESS OUGHT TO BE PLAYING ITS ROLE OF EDUCATING THE PUBLIC IT'S FAIR OF COURSE TO ASK WHO IN CONGRESS HAS THE CREDIBILITY TO DO IT THE SIGHT OF SENATE BANKING CHAIRMAN AND KEATING FIVER DON RIEGLE INVESTIGATING ANYONE IS WE ADMIT FODDER FOR SATURDAY NIGHT LIVE THE JUDICIARY COMMITTEE COULD EXPLORE MR. CLINTON'S FIRING OF NINETY THREE U. S. ATTORNEYS LAST MARCH AN ACT THAT LET HIM APPOINT A CRONY IN LITTLE ROCK BUT THIS WOULD AGAIN HIGHLIGHT THE ANITA HILL GANG YET SOMETIMES CONGRESS HAS BEEN UP TO THE JOB HENRY GONZALEZ'S KEATING FIVE HEARINGS HELPED THE PUBLIC UNDERSTAND WHAT HAPPENED TO THE S. AND L.S AMPLIFIED LATER BY SPECIAL COUNSEL BOB BENNETT'S ETHICS PROBE FOR THAT MATTER THERE IS PLENTY OF PRECEDENT RANGING FROM MR. BENNETT TO ARTHUR LIMAN AND BACK AT LEAST TO FERDINAND PECORA FOR CONGRESS TO APPOINT ITS OWN SPECIAL COUNSEL NOT ONLY PROVIDING INVESTIGATORY EXPERTISE BUT ABSORBING POLITICAL HEAT ANOTHER CONSTITUTIONAL OPTION FIRST SUGGESTED BY SENATOR LAUCH FAIRCLOTH AND SINCE PICKED UP BY BOTH BOB DOLE AND JIM LEACH IS FOR THE ATTORNEY GENERAL TO APPOINT A SPECIAL COUNSEL WITHIN THE EXECUTIVE BRANCH INDEED WE OURSELVES SUGGESTED THIS AFTER VINCENT FOSTER'S DEATH IF ONLY TO ASSIGN RESPONSIBILITY AND ACCOUNTABILITY FOR ITS INVESTIGATION THIS IS DIFFERENT FROM THE INDEPENDENT COUNSEL LAW BECAUSE SUCH A SPECIAL COUNSEL REMAINS ACCOUNTABLE TO THE ATTORNEY GENERAL A PRESIDENT COULD ALWAYS FIRE HIM A THREAT THAT MAKES THE COUNSEL ACCOUNTABLE TO SOMEONE BUT THIS THREAT CANNOT BE CARRIED OUT WITHOUT A HEAVY POLITICAL PRICE AS RICHARD NIXON LEARNED WHEN HE DISMISSED ARCHIBALD COX DURING WATERGATE WASHINGTON HAS SEEN A LOT OF SCANDALS OVER TWO HUNDRED YEARS AFTER ALL AND THE COUNTRY SOMEHOW COPED BEFORE THE INDEPENDENT COUNSEL LAW WAS PASSED IN NINETEEN SEVENTY EIGHT TEAPOT DOME AND WATERGATE WERE BOTH EXPOSED WITHOUT SUCH A LAW THE PECORA HEARINGS IN THE NINETEEN THIRTIES PROBED FINANCIAL AND POLITICAL TIES THAT EMBARRASSED BOTH REPUBLICANS AND DEMOCRATS ANY PEEK AT HISTORY SHOWS THE SYSTEM WORKED BETTER BEFORE THE INDEPENDENT COUNSEL LAW WAS ENACTED THIS IS BECAUSE THE INSTITUTION IS AN INVITATION TO DODGE RESPONSIBILITY IF INDEED THAT IS NOT ITS VERY PURPOSE ALONG THE WAY IT MANAGES A FATAL CONFUSION OF THE ROLES OF EDUCATING THE PUBLIC AND ENFORCING THE LAW WHEN DEMOCRATS IN CONGRESS LOST THEIR SHOWDOWN WITH OLLIE NORTH IN PUBLIC HEARINGS THEY TRIED TO CRIMINALIZE THEIR DIFFERENCES VIA LAWRENCE WALSH BECAUSE HE HAS BEEN OUTSIDE POLITICAL CONTROL MR. WALSH COULD TAKE SIX YEARS SPEND THIRTY FIVE MILLION DOLLARS AND STILL FACE NO DISCIPLINE THE COURTS ARE EVEN NOW CLEANING UP AFTER HIS BLUNDERS BY AWARDING LEGAL FEES TO INDIVIDUALS MR. WALSH HAS UNFAIRLY HARASSED WE NOW SEEM ON COURSE TO HAVE THIS LAW REINSTATED WITHOUT EVEN AS BARNEY FRANK HOPES A VOTE ON WHETHER MISCREANT CONGRESSMEN SHOULD FACE A SIMILAR INSTITUTION THEN MS. RENO CAN APPOINT A COUNSEL AND WASH HER HANDS OF THE MATTER DEMOCRATS IN CONGRESS WILL ALSO CLAIM THEY'VE DONE EVERYTHING THEY COULD INSULATING THEMSELVES FROM ANY RESPONSIBILITY BEFORE THE VOTER A WHITEWATER INVESTIGATOR MIGHT OF COURSE TURN INTO ANOTHER LAWRENCE WALSH HE MIGHT EVEN FIND A CRIME WORSE THAN ACCEPTING A SECURITY FENCE HE MIGHT ALSO SWALLOW ALL OF THE DOCUMENTS AND SILENCE THE ISSUE FOR YEARS IF CONGRESS IS TO CREATE SOME QUOTE INDEPENDENT QUOTE BODY LET IT BE ONE WORTHY OF THE TASK WHITEWATER AFTER ALL IS MERELY THE LATEST EPISODE IN THE S. AND L. DISASTER THE HOUSE POST OFFICE THE ONGOING ROSTENKOWSKI PROBE THE HINTS OF POLITICAL INFLUENCE VIA B. C. C. I. OF WHICH WE MAY LEARN A GREAT DEAL MORE THROUGH THE SETTLEMENT BOB MORGENTHAU AND COMPANY HAVE WON FROM ABU DHABI WHY NOT A SPECIAL COMMISSION WITH THE POWER OF SUBPOENA AND PUBLIC HEARINGS TO EXPLORE THE CORRUPTION OF THE POLITICAL PROCESS OUR CANDIDATE TO HEAD IT WOULD BE RETIRED SUPREME COURT JUSTICE WHIZZER WHITE THE POINT IS THAT WHILE LAWS MAY HAVE INDEED BEEN BROKEN IN WHITEWATER THE MORE IMPORTANT POINT IS TO FIND OUT WHAT HAPPENED AN INDEPENDENT COUNSEL PORING OVER THE STATUTE BOOKS LOOKING FOR A CRIME THAT MIGHT FIT THE FACTS THIS IS A TRAP INSTEAD REPUBLICANS SHOULD HAVE THE GUMPTION TO FORCE THE DEMOCRATIC LEADERSHIP TO FACE UP TO A FULL AND PUBLIC INVESTIGATION BY OBSTRUCTING THE WORK OF CONGRESS IF THAT PROVES NECESSARY A COMMITTED MINORITY CAN FORCE A CONGRESS TO DO ITS DUTY THE DEMOCRATS MAY OBJECT JUST AS JANET RENO MAY PROVE SHE LACKS THE INDEPENDENCE TO INVESTIGATE HER PRESIDENT BUT THE FOUNDERS PROVIDED A READY SOLUTION TO SUCH A POLITICAL IMPASSE THE SOLUTION IS DEMOCRACY AND AS CONGRESS VERY WELL UNDERSTANDS THE NEXT ELECTIONS ARE SCHEDULED FOR NOVEMBER NEGOTIATIONS BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION RESUMED IN THE EGYPTIAN RESORT TOWN OF TABA BUT ISRAELI FOREIGN MINISTER SHIMON PERES SAID THE TWO SIDES MIGHT NOT MEET THE APRIL THIRTEENTH DEADLINE SET FOR THE FULL WITHDRAWAL OF ISRAELI TROOPS FROM THE GAZA STRIP AND THE WEST BANK TOWN OF JERICHO PALESTINIAN CHIEF DELEGATE NABIL SHAATH WAS MORE OPTIMISTIC DECLARING THAT AN AGREEMENT COULD BE REACHED WITHIN TWO TO THREE WEEKS THE LATEST ROUND OF TALKS COMES TWO WEEKS AFTER NEGOTIATIONS BETWEEN ISRAEL AND THE P. L. O. BROKE DOWN IN CAIRO THE ISRAELI WITHDRAWAL FROM JERICHO AND GAZA WAS TO HAVE BEGUN DECEMBER THIRTEENTH BUT HAS BEEN HELD UP BY DIFFERENCES OVER DETAILS BEFORE THE LATEST ROUND OF TALKS BEGAN YESTERDAY ISRAELI PRIME MINISTER YITZHAK RABIN TOLD HIS CABINET THAT THE PALESTINIANS MUST STICK TO THE UNDERSTANDINGS REACHED IN CAIRO THAT THE SIZE OF THE SELF RULE AREA IN JERICHO WILL BE TWENTY TWO SQUARE MILES AND THAT ISRAEL AND THE PALESTINIANS WILL JOINTLY CONTROL THE BORDER CROSSINGS INTO THE AREA UNDER PALESTINIAN SELF RULE EVEN IF THE PALESTINIAN TEAM AGREES TO THE ISRAELI CONDITION ISRAELI OFFICIALS SAID THAT MAJOR ISSUES SUCH AS HOW TO PROTECT THE JEWISH SETTLEMENTS IN GAZA HAVEN'T BEEN DEALT WITH AND THE AGREEMENT WON'T BE REACHED AS QUICKLY AS ISRAELI NEGOTIATORS HAD HOPED THE SUBDUED ATMOSPHERE IN JERUSALEM WAS REFLECTED BY MR. PERES A CONSTANT CHAMPION OF THE ISRAEL P. L. O. ACCORD SINCE IT WAS SIGNED IN SEPTEMBER ON THE WHITE HOUSE LAWN SOUNDING UNCHARACTERISTICALLY PESSIMISTIC HE SAID YESTERDAY THAT ISRAEL WOULD TRY TO MEET THE APRIL THIRTEENTH DEADLINE BUT INSISTED THAT UNDER THE ACCORD THE FOUR MONTH IMPLEMENTATION PERIOD ISN'T SET TO BEGIN UNTIL ISRAEL AND THE P. L. O. SIGN A DETAILED WITHDRAWAL AGREEMENT HE SAID FINISHING THE WITHDRAWAL ON TIME ALSO DEPENDS ON THE PALESTINIAN NEGOTIATING POSITIONS P. L. O. NEGOTIATOR MR. SHAATH INSISTED THAT THE APRIL THIRTEENTH DEADLINE MUST BE MET QUOTE IF WE'RE GOING TO PLAY HAVOC WITH THIS DATE WE ARE GOING TO PLAY HAVOC WITH THE WHOLE AGREEMENT QUOTE MR. SHAATH SAID SUPPORT FOR THE ACCORD AMONG ISRAELIS AND PALESTINIANS HAS DROPPED SIGNIFICANTLY AS VIOLENCE IN THE OCCUPIED TERRITORIES CONTINUED AND THE NEGOTIATIONS APPEARED DEADLOCKED OVER SECURITY ISSUES ON MONDAY RESIDENTS OF THE JEWISH SETTLEMENT NAAMA IN THE JORDAN VALLEY PREVENTED VEHICLES FROM REACHING THE ALLENBY BRIDGE CROSSING TO JORDAN FOR AN HOUR TO PROTEST REPORTS THAT THE SIZE OF TERRITORY UNDER SELF RULE IN JERICHO WILL ISOLATE THEM TWO DRUG MAKERS RECEIVED FOOD AND DRUG ADMINISTRATION CLEARANCE TO USE A DRUG AS A PREVENTIVE TREATMENT AGAINST PNEUMONIA IN AIDS PATIENTS AND IN OTHERS WITH SUPPRESSED IMMUNE SYSTEMS HOFFMANN LA ROCHE INCORPORATED AND BURROUGHS WELLCOME COMPANY WORKED TOGETHER TO WIN CLEARANCE FOR THE NEW USAGE OF TRIMETHOPRIM SULFAMETHOXAZOLE AN ANTIBACTERIAL DRUG THAT'S ALREADY ON THE MARKET TO TREAT PNEUMOCYSTIS CARINII PNEUMONIA OR P. C. P. THE MOST COMMON OPPORTUNISTIC INFECTION FOR PEOPLE WITH AIDS THE ILLNESS IS ONE OF THE MAJOR CAUSES OF DEATH IN AIDS PATIENTS JOINT CLINICAL STUDIES SHOWED THE DRUG COULD HELP PREVENT P. C. P. FROM DEVELOPING ESPECIALLY IN PATIENTS WITH H. I. V. THE VIRUS THAT CAUSES AIDS HOFFMANN LA ROCHE WILL MARKET ITS BACTRIM BRAND OF THE FORMULATION WHILE BURROUGHS WELLCOME WILL MARKET THE DRUG AS SEPTRA HOFFMANN LA ROCHE BASED IN NUTLEY N. J. IS A UNIT OF ROCHE HOLDING LIMITED A PHARMACEUTICAL AND HEALTH CARE CONCERN BASED IN BASEL SWITZERLAND BURROUGHS WELLCOME BASED IN RESEARCH TRIANGLE PARK N. C. IS A UNIT OF WELLCOME P. L. C. OF LONDON MAXUS ENERGY CORPORATION DALLAS ANNOUNCED A PUBLIC OFFERING OF SIXTY MILLION DOLLARS OF ITS NINE AND THREE EIGHTHS PERCENT SERIES B. NOTES DUE NOVEMBER FIRST TWO THOUSAND THREE NET PROCEEDS FROM THE SALE WILL BE ADDED TO WORKING CAPITAL AND USED FOR GENERAL CORPORATE PURPOSES INCLUDING REPAYMENT OF FIFTY EIGHT MILLION DOLLARS OF MAXUS'S MEDIUM TERM NOTES MATURING THIS APRIL AND BEARING INTEREST RATES RANGING FROM FOUR POINT FIVE SEVEN PERCENT TO FOUR POINT EIGHT FIVE PERCENT C. S. FIRST BOSTON IS UNDERWRITER FOR THE OFFERING BRITAIN AND THE U. S. BETWEEN THEM CREATED THE MODERN CONCEPT OF DEMOCRACY BUT THERE ARE TIMES WHEN I WONDER WHETHER DEMOCRACY ACTUALLY WORKS IN EITHER COUNTRY MY DOUBTS BECOME MOST PRONOUNCED WHEN THE TOPICS OF CRIME AND ITS PUNISHMENT COME UP AND I COMPARE HOW THEY ARE ACTUALLY DEALT WITH BY THE AUTHORITIES WITH WHAT THE PUBLIC WANTS DONE QUOTE WANTS QUOTE IS THE KEY WORD FOR THE ESSENCE OF DEMOCRACY IS NOT ONE PERSON ONE VOTE MOST AFRICANS HAVE GOT THAT AND WHAT GOOD DOES IT DO THEM NOR IS THE ESSENTIAL QUESTION WHETHER YOU HAVE A PRESIDENCY OR A CONSTITUTIONAL MONARCHY AND A CONGRESS OR A PARLIAMENT THESE ARE DETAILS WHAT MAKES DEMOCRACY REAL IS A WORKING SYSTEM THAT TRANSLATES THE REASONABLE WISHES OF THE MASS OF THE PEOPLE INTO THE ACTUAL PERFORMANCE OF GOVERNMENT CYNICS WILL SAY THAT NO SUCH SYSTEM DOES OR CAN EXIST BUT THAT IS NONSENSE DURING THE NINETEENTH CENTURY AND FOR MOST OF THE TWENTIETH THE U. S. CONGRESS AND THE BRITISH PARLIAMENT WERE REMARKABLY EFFECTIVE IN REFORMING AND IMPROVING INSTITUTIONS IN ACCORDANCE WITH THE WISHES OF THE PEOPLE THAT IS WHY BOTH SOCIETIES PROVED SO STABLE AND VIRTUALLY IMPERVIOUS TO THE REVOLUTIONARY SHOCKS THAT MADE THE MODERN HISTORY OF SO MANY OTHER ADVANCED COUNTRIES UNHAPPY NOW DOUBTS HAVE ARISEN AND THEY ARE PARTICULARLY NAGGING IN THE AREA OF LAW AND ORDER GOVERNMENTS HAVE A FUNDAMENTAL OBLIGATION TO DO THREE THINGS MANAGE A COUNTRY'S EXTERNAL DEFENSES UPHOLD INTERNAL ORDER AND MAINTAIN AN HONEST CURRENCY OF COURSE THEY CAN DO MANY OTHER THINGS BUT THESE ARE THE THREE ESSENTIALS BECAUSE ONLY GOVERNMENT CAN DO THEM THE MORE GOVERNMENTS ATTEMPT TO DO THE MORE LIKELY IT IS THAT ONE OR ANOTHER OF THESE BASIC ROLES WILL BE BADLY CARRIED OUT USUALLY IT IS THE THIRD THAT IS FORGOTTEN FOR ACTIVIST GOVERNMENTS TEND TO PRODUCE INFLATION AND HYPERACTIVE GOVERNMENTS AS WE SEE IN LATIN AMERICA PRODUCE HYPERINFLATION HOWEVER EVEN IN STEADY DEMOCRACIES LIKE THE U. S. AND BRITAIN WHERE INFLATION HAS NEVER GOTTEN OUT OF HAND AND IS IN FACT WELL UNDER CONTROL AT PRESENT THE FEELING IS GROWING THAT GOVERNMENT NOW PERFORMS ITS SECOND FUNCTION VERY BADLY INDEED THROUGHOUT THIS CENTURY GOVERNMENTS IN BOTH COUNTRIES HAVE SYSTEMATICALLY TAKEN ON RESPONSIBILITIES FOR WELFARE HEALTH EDUCATION HOUSING AND EVEN CULTURE THAT WERE HITHERTO DISCHARGED BY CITIZENS THEMSELVES AT THE SAME TIME A REVERSE PROCESS HAS BEEN TAKING PLACE IN THE PROTECTION OF LIFE AND PROPERTY GOVERNMENT HAS BECOME SO INEFFECTUAL IN THIS FIELD THAT INDIVIDUALS HAVE TO ACT ON THEIR OWN BEHALF INNER CITY APARTMENTS HAVE BECOME MINIATURE FORTRESSES PRIVATE SECURITY IS ONE OF THE FASTEST GROWING INDUSTRIES IN BOTH COUNTRIES IN THE U. S. THE NUMBER OF WOMEN CARRYING DEFENSIVE WEAPONS CHIEFLY HANDGUNS HAS RISEN DRAMATICALLY A UBIQUITOUS NEW INSTITUTION IN BRITAIN ALREADY COMMON IN THE U. S. IS NEIGHBORHOOD WATCH A SCHEME WHEREBY NEIGHBORS BAND TOGETHER TO PROTECT EACH OTHER'S PROPERTY VIGILANTISM INDEED IS NOW MAKING ITS APPEARANCE IN BRITAIN FOR THE FIRST TIME IN CENTURIES TO STRONG PUBLIC APPROVAL AND IN THE U. S. CITIZENS WHO GUN DOWN HABITUAL CRIMINALS ARE ACQUITTED BY JURIES AND BECOME POPULAR HEROES BEHIND THIS GRIM RELIANCE ON SELF PROTECTION AND CONTEMPTUOUS CYNICISM FOR THE EFFORTS OF GOVERNMENT LIE TWO CONVICTIONS BURNED INTO THE PUBLIC CONSCIOUSNESS THE FIRST IS A UNIVERSAL PERCEPTION THAT CRIME NOT LEAST VIOLENT CRIME HAS INCREASED TO THE POINT WHERE IT IS EFFECTIVELY OUT OF THE CONTROL OF AUTHORITY ACADEMIC CRIMINOLOGISTS WIELDING BATTERIES OF STATISTICS SOMETIMES ARGUE THAT THIS PUBLIC PERCEPTION IS FALSE AND BASED ON WHAT THEY SNEERINGLY TERM ANECDOTAL EVIDENCE BUT WHAT OTHER KIND OF EVIDENCE DO WE HAVE TO GO BY FOR OUR KNOWLEDGE OF MOST THINGS PEOPLE FORM CONCLUSIONS BY WHAT HAPPENS TO THEM THEIR FAMILIES FRIENDS AND NEIGHBORS AND IF ALL VIRTUALLY WITHOUT EXCEPTION ARE VICTIMS OF CRIME THEN THEY UNDERSTANDABLY CONCLUDE THAT THE BALANCE OF ADVANTAGE HAS DECISIVELY SHIFTED TO THE CRIMINAL THE STATISTICS AS IT HAPPENS BEAR OUT THIS CONCLUSION COMMENTING ON THEM THE CHIEF CONSTABLE OF ONE OF BRITAIN'S LARGEST POLICE AUTHORITIES RECENTLY STATED FLATLY THAT CRIME NOW PAYS IN BRITAIN SURELY THIS IS ONE REASON WHY THE NUMBER OF CRIMINALS PROFESSIONAL AND AMATEUR IS RISING IT IS PROBABLY TRUE TO SAY THAT IN BOTH BRITAIN AND THE U. S. CRIME IS AN INDUSTRY GROWING EVEN FASTER THAN PRIVATE SECURITY RECENTLY I HAVE BEEN REREADING THE REMARKABLE STUDIES THAT HENRY MAYHEW CARRIED OUT IN LONDON IN THE ONE THOUSAND EIGHT HUNDRED FORTIES AND PUBLISHED AS LONDON LABOUR AND THE LONDON POOR ONE THOUSAND EIGHT HUNDRED FIFTY ONE HIS FOURTH VOLUME DEALS COMPREHENSIVELY WITH THE CRIMINALS OF LONDON THEN A CITY OF ABOUT THREE MILLION PEOPLE HE WAS ABLE NOT ONLY TO IDENTIFY EVERY CATEGORY AND SUB TYPE OF CRIMINAL ACTIVITY IN THE CITY BUT IN ALMOST EVERY CASE TO PINPOINT THEIR GEOGRAPHICAL LOCATION WHAT HE WAS DESCRIBING IN FACT WAS A SPECIFIC CRIMINAL CLASS DISTINCT FROM SOCIETY AS A WHOLE AND ALMOST BY DEFINITION FIRMLY UNDER ITS CONTROL CRIME COULD NOT FINALLY BE ENDED BUT IT COULD BE CONTAINED AND ERODED TODAY IT WOULD BE IMPOSSIBLE FOR A MODERN MAYHEW TO PUBLISH SUCH A SURVEY OF NEW YORK OR LONDON OR LOS ANGELES IT IS NOT JUST THAT THESE CITIES ARE BIGGER FOURTEEN POINT SIX MILLION NINE POINT ONE MILLION AND TEN POINT ONE MILLION PEOPLE RESPECTIVELY BUT THAT CRIME IS NO LONGER LOCALIZED IT IS EVERYWHERE AND PERMEATES SOCIETY IT STARTS EARLIER LAST FEBRUARY IN LIVERPOOL TWO TEN YEAR OLDS ABDUCTED AND CRUELLY MURDERED A TWO YEAR OLD IN LOS ANGELES ONE HUNDRED THOUSAND CHILDREN UNDER THE AGE OF FOURTEEN BELONG TO GANGS ARMED WITH LETHAL WEAPONS CRIME ALSO NOW AFFECTS THE LIVES OF THE AGED TO A DEGREE HITHERTO UNKNOWN IT IS NOT UNCOMMON IN LONDON FOR WOMEN OVER EIGHTY TO BE RAPED AND MURDERED BY YOUNG THIEVES WHO BREAK INTO THEIR APARTMENTS TO STEAL INDEED IN CITIES ON BOTH SIDES OF THE ATLANTIC THE AGED AND DEFENSELESS IN THE INNER CITIES HAVE NOW LOST THEIR FREEDOM OF MOVEMENT JUST AS YOUNG CHILDREN CAN NO LONGER BE ALLOWED TO PLAY IN THE STREETS CRIME NOW TRANSCENDS SEX AS MORE AND MORE WOMEN BECOME BOTH VICTIMS AND PERPETRATORS OF IT THANKS PRINCIPALLY TO DRUG ABUSE IT TRANSCENDS CLASS AND OCCUPATION AND EDUCATIONAL BARRIERS EVERYDAY CRIME IS NO LONGER CONFINED TO INNER CITY GHETTOS FIGURES RELEASED LAST WEEK SHOW THAT IN BRITAIN IT IS RISING FASTEST IN RURAL AREAS OLD FASHIONED CONSERVATIVE SHIRES LIKE WILTSHIRE AND HAMPSHIRE NOW PRODUCE DEVASTATING STATISTICS OF ROBBERY WITH VIOLENCE RAPE AND MALICIOUS WOUNDING IN THE U. S. CRIME HAS BECOME ROUTINE IN SMALLER CITIES AND TOWNSHIPS EVERYONE RICH AND POOR OLD AND YOUNG BLACK AND WHITE EDUCATED AND ILLITERATE IS NOW AT THE RECEIVING END OF CRIME OR PERPETRATING IT YET AT A TIME WHEN CRIME IS HAVING A MORE DIRECT IMPACT ON THE LIVES OF US ALL THAN EVER BEFORE THE TREATMENT OF IT BY AUTHORITY IS BECOMING LESS AND LESS DEMOCRATIC IN BOTH BRITAIN AND THE U. S. OPINION POLLS CONDUCTED OVER MANY YEARS SHOW THAT PUBLIC OPINION IN ITS ATTITUDE TOWARD CRIME IS OVERWHELMINGLY REPRESSIVE AS CRIME INCREASES ORDINARY PEOPLE NOT SURPRISINGLY BECOME MORE AND MORE HOSTILE TOWARD CRIMINALS THEY DO NOT WANT TO UNDERSTAND CRIMINALS THEY ARE NOT EVEN MUCH INTERESTED IN REFORMING THEM THEY WANT THEM PUNISHED AS SEVERELY AND AS CHEAPLY AS POSSIBLE HABITUAL AND VIOLENT CRIMINALS THEY WANT TAKEN OUT OF SOCIETY ALTOGETHER PREFERABLY FOR GOOD THEY FAVOR PUNISHMENT THAT IS DETERRENT AND RETRIBUTIVE BUT WHAT AUTHORITY ACTUALLY DOES ABOUT DEALING WITH CRIME BEARS NO RELATION AT ALL TO POPULAR WISHES IN BOTH COUNTRIES THE LIBERALS CAPTURED POWER OVER THE ADMINISTRATION OF CRIME AND PUNISHMENT IN THE NINETEEN FIFTIES AND HAVE NEVER RELINQUISHED IT ON THE CONTRARY THEIR GRIP HAS TIGHTENED AS CRIME RISES AND AFFECTS THE LIVES OF MORE AND MORE PEOPLE SO LIBERAL REMEDIES ARE APPLIED WITH EVER INCREASING OBSTINACY AND AT MOUNTING EXPENSE THE REASONS LIE IN THE NATURE OF MODERN GOVERNMENT WHERE LOBBIES PRESSURE GROUPS AND ORGANIZED MINORITIES EXERT MORE INFLUENCE OVER SPECIFIC AREAS OF POLICY THAN THE MASS OF THE PEOPLE THIS PRINCIPLE APPLIES PARTICULARLY IN THE FIELD OF CRIME IN BOTH BRITAIN AND THE U. S. A PERMANENT WORKING ALLIANCE EXISTS BETWEEN ON THE ONE HAND LIBERALS IN ACADEMIA AND THE MEDIA AND ON THE OTHER THEIR COUNTERPARTS IN GOVERNMENT AND ITS AGENCIES IN PRIVATE AND TRADE UNION LOBBIES IN THE COURTS AND IN LAW FIRMS IN PRACTICE THESE PEOPLE DRAFT THE LEGISLATION THAT GOVERNMENTS THEN SPONSOR AND CONGRESS AND PARLIAMENT ENACT THIS LEGISLATION IS OVERWHELMINGLY LIBERAL IN CHARACTER AND IS DESIGNED ESSENTIALLY TO PROTECT THE RIGHTS AND INTERESTS OF THE WRONGDOER RATHER THAN THOSE OF THE VICTIM WHO HAS NO LOBBY THIS EXPLAINS FOR INSTANCE WHY THE BRITISH CONSERVATIVE GOVERNMENT THEORETICALLY COMMITTED TO A REPRESSIVE LINE ON CRIME HAS IN FACT PUT THROUGH SUCH ULTRALIBERAL MEASURES AS THE CHILDREN'S ACT OF NINETEEN EIGHTY NINE AND THE CRIMINAL JUSTICE ACT OF NINETEEN NINETY ONE LIBERALISM AS THE ANSWER TO RISING CRIME HAS BEEN APPLIED IN BOTH THE GREAT DEMOCRACIES NOW FOR THE BEST PART OF HALF A CENTURY IT HAS BEEN TESTED TO DESTRUCTION IT HAS FAILED EVERYWHERE OVERWHELMINGLY AND MANIFESTLY EXCEPT IN ONE REGION THE MINDS OF ITS ADVOCATES FOR THEM LIBERALISM IS A RELIGION AN ARTICLE OF FAITH BORN OF CONVICTION AND NOT SUSCEPTIBLE TO PROOF OR DISPROOF AND AS THEY CONTINUE TO CONTROL IN PRACTICE THE WAY IN WHICH SOCIETY OFFICIALLY RESPONDS TO CRIME IN BOTH COUNTRIES SO THEY NOURISH THE MONSTER STROLLING IN OUR MIDST BY INCREASING ITS LIBERAL DIET ORDINARY PEOPLE IN THE MEANTIME PERCEIVE THAT IN THIS CENTRAL FIELD DEMOCRACY DOES NOT WORK AT ALL THEY SHRUG THEIR SHOULDERS AND SET ABOUT PROTECTING THEMSELVES AS THEIR PRIMITIVE ANCESTORS DID BEFORE THE STATE HAD BEEN INVENTED IT IS NOT A HEALTHY STATE OF AFFAIRS IN FACT THE FAILURE OF AUTHORITY TO CARRY OUT THE PUBLIC'S WISHES ON CRIME IS EVEN MORE CORROSIVE OF SOCIETY THAN RISING CRIME ITSELF MR. JOHNSON'S MOST RECENT BOOK IS THE BIRTH OF THE MODERN HARPERCOLLINS NINETEEN NINETY ONE RAW STEEL PRODUCTION BY THE NATION'S MILLS INCREASED ONE POINT SIX PERCENT LAST WEEK TO ONE MILLION EIGHT HUNDRED NINETY FOUR THOUSAND TONS FROM ONE MILLION EIGHT HUNDRED SIXTY FOUR THOUSAND TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE SEVEN POINT FIVE PERCENT FROM THE ONE MILLION SEVEN HUNDRED SIXTY TWO THOUSAND TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED NINETY TWO PERCENT OF ITS CAPABILITY LAST WEEK COMPARED WITH EIGHTY EIGHT POINT SIX PERCENT THE PREVIOUS WEEK AND EIGHTY THREE POINT THREE PERCENT A YEAR AGO THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK PRUDENTIAL SECURITIES INCORPORATED WITH THE HELP OF TWO MAJOR ACCOUNTING FIRMS INFLATED THE PURCHASE PRICE OF SOME ENERGY LIMITED PARTNERSHIPS BY BACKDATING THE EFFECTIVE DATES OF OIL PROPERTY PURCHASES A LAWSUIT CONTENDS THE LAWSUIT FILED IN ORANGE COUNTY SUPERIOR COURT IN CALIFORNIA LATE FRIDAY AND SEEKING CLASS ACTION ON BEHALF OF ONE HUNDRED EIGHTEEN THOUSAND FIVE HUNDRED INVESTORS IS THE FIRST ATTEMPT TO HAUL ARTHUR ANDERSEN AND COMPANY AND DELOITTE AND TOUCHE THE TWO PRUDENTIAL ACCOUNTING FIRMS INTO THE BROKERAGE FIRM'S PARTNERSHIP MESS THE SUIT ALLEGES THAT PRUDENTIAL ALONG WITH ANDERSEN AND DELOITTE WHICH REVIEWED THE PARTNERSHIPS' FINANCIAL RECORDS HARMED INVESTORS THROUGH THE ACCOUNTING GAMBIT WHICH EFFECTIVELY RETURNED SOME OF THE INVESTORS' MONEY TO THEM AS PARTNERSHIP DISTRIBUTIONS THE SUIT SEEKS ONE POINT ONE BILLION DOLLARS IN DAMAGES AS PREVIOUSLY REPORTED PRUDENTIAL INFLATED PAYOUTS ON SOME OF ITS MONEY LOSING PARTNERSHIPS BY DISTRIBUTING BORROWED FUNDS TO INVESTORS BUT THE SUIT'S ALLEGATIONS SUGGEST THAT THERE WAS A CALCULATED ATTEMPT BY PRUDENTIAL TO DEFRAUD INVESTORS FROM THE PARTNERSHIPS' LAUNCH AND THAT ANDERSEN AND TOUCHE WERE PART OF IT THE SUIT TYPIFIES MANY ACTIONS AGAINST BIG ACCOUNTING FIRMS IN RECENT YEARS THE BIG SIX SAY SUCH CLAIMS AIMED AT THEIR QUOTE DEEP POCKETS QUOTE TOTAL THIRTY BILLION DOLLARS OR FAR MORE THAN THE ACCOUNTING PARTNERS' CAPITAL PLAINTIFFS' ATTORNEYS SAY OUTSIDE AUDITORS SHOULD ALERT INVESTORS TO MANAGEMENT FRAUD BUT AUDITORS COUNTER THEY ALSO WERE FOOLED BY FRAUDULENT MANAGEMENT A SPOKESMAN FOR ARTHUR ANDERSEN THE NATION'S BIGGEST ACCOUNTING FIRM SAID OF THE PRUDENTIAL CASE WE ARE CONFIDENT WE CONDUCTED OUR AUDITS IN COMPLIANCE WITH GENERALLY ACCEPTED AUDITING PRINCIPLES AND ARE UNAWARE OF ANY FACTUAL BASIS FOR THE LAWSUIT A SPOKESMAN FOR DELOITTE SAID THE THIRD LARGEST U. S. ACCOUNTING FIRM HASN'T YET SEEN THE SUIT AND THUS CAN'T COMMENT PRUDENTIAL SECURITIES THE FOURTH LARGEST BROKERAGE FIRM AND A UNIT OF PRUDENTIAL INSURANCE COMPANY OF AMERICA ISN'T A NAMED DEFENDANT IN THE SUIT BECAUSE IT ALREADY FACES A MAJOR CLASS ACTION LAWSUIT INVOLVING THE ENERGY PARTNERSHIPS THIS IS NOT NEW JOHN MURRAY PRUDENTIAL'S DIRECTOR OF CORPORATE RISK MANAGEMENT SAID OF THE SUIT'S ALLEGATIONS THERE WAS NO BACKDATING OF DOCUMENTS AT ALL AT ALL AT ALL ANYWHERE HE SAID ADDING THAT STANDARD PRACTICE IN THE OIL AND GAS INDUSTRY IS TO HAVE THE EFFECTIVE DATE PRIOR TO THE SIGNING OF THE PURCHASE CONTRACT OR CLOSING OF THE SALE PRUDENTIAL AND ITS ACCOUNTANTS OVERSTATED INVESTOR DISTRIBUTIONS BY THE AMOUNT OF PRECLOSING REVENUES THE SUIT SAYS MOREOVER THE DISCLOSURE CONCERNING THE PRECLOSING REVENUE WAS TOTALLY MISLEADING IN THAT IT CARRIED WITH IT THE CONNOTATION OF A POST CONTRACTUAL EFFECTIVE DATE THE SUIT SAYS IN SOME INSTANCES THE EFFECTIVE DATE EVEN PRECEDED THE DATE ON WHICH THE PARTICULAR LIMITED PARTNERSHIP WAS FORMED ACCORDING TO THE SUIT IN OCTOBER PRUDENTIAL AGREED TO PAY AT LEAST THREE HUNDRED THIRTY MILLION DOLLARS IN A RESTITUTION FUND FOR INVESTORS TO SETTLE ALLEGATIONS BY FEDERAL AND STATE REGULATORS THAT THE FIRM MISSTATED THE RISKS AND RETURNS IN SELLING ABOUT EIGHT BILLION DOLLARS OF PARTNERSHIPS IN THE NINETEEN EIGHTIES ROBERT MEHRABIAN FIFTY TWO YEARS OLD PRESIDENT OF CARNEGIE MELLON UNIVERSITY PITTSBURGH WAS NAMED A NEW DIRECTOR OF THIS BANK HOLDING COMPANY AND OF ITS MELLON BANK UNIT HIS APPOINTMENT WHICH WAS EFFECTIVE JANUARY FIRST INCREASES THE SIZE OF BOTH THE COMPANY'S AND THE UNIT'S BOARD TO TWENTY MEMBERS DUKE RODRIGUEZ THIRTY SIX YEARS OLD FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED PRESIDENT OF THIS MAIL ORDER PHARMACEUTICAL COMPANY HE WILL REMAIN CHIEF OPERATING OFFICER THE COMPANY ALSO SAID IT IS REORGANIZING MANAGEMENT TO ELIMINATE DUPLICATE MANAGEMENT FUNCTIONS WITHIN THE THREE PRINCIPAL OPERATING UNITS AS A RESULT WARREN SCHELLING FORTY PRESIDENT OF THE COMPANY'S HPI HEALTH CARE SERVICES UNIT WAS NAMED EXECUTIVE VICE PRESIDENT AND PHARMACY SERVICES OFFICER ARTHUR SOLOMON FORTY FIVE PRESIDENT OF HEALTH CARE SERVICES WAS NAMED EXECUTIVE VICE PRESIDENT AND MANAGED CARE OFFICER AND ROBERT FIELD FORTY SIX PRESIDENT OF PERFORM COST MANAGEMENT SERVICES WAS NAMED EXECUTIVE VICE PRESIDENT AND SALES OFFICER THE NEW AGREEMENT PROVIDES U. S. PROSECUTORS WITH MORE INFORMATION AND ACCESS TO KEY WITNESSES THE SETTLEMENT WAS STRUCK SATURDAY BY THE U. S. JUSTICE DEPARTMENT THE NEW YORK COUNTY DISTRICT ATTORNEY'S OFFICE AND THE FEDERAL RESERVE BOARD AND ABU DHABI THE ACCORD ALSO COULD LEAD TO A SETTLEMENT OF DEPOSITORS' CLAIMS WHICH ARE ESTIMATED TO TOTAL AS MUCH AS TWELVE BILLION DOLLARS A KEY CLAUSE REQUIRES THE PERSIAN GULF SHEIKDOM WHICH OWNED SEVENTY SEVEN PERCENT OF B. C. C. I. TO SETTLE WITH B. C. C. I.'S LIQUIDATORS ON DEPOSITORS' CLAIMS BY APRIL FIRST OR HAND OVER QUOTE ALL OF THE ORIGINAL BOOKS AND RECORDS OF B. C. C. I. QUOTE HANDING OVER ALL RECORDS MIGHT WELL OPEN THE DOORS TO YEARS OF LAWSUITS THE LIQUIDATORS OF B. C. C. I. HOLDINGS LUXEMBOURG S. A. THE BANK'S HOLDING COMPANY WERE APPOINTED BY A LUXEMBOURG COURT AFTER THE BANK WAS CLOSED BY REGULATORS IN THE U. S. AND EUROPE ON JULY FIFTH NINETEEN NINETY ONE CITING A HISTORY OF FRAUD GOING BACK MANY YEARS WITH THE SETTLEMENT CIVIL RACKETEERING CHARGES AGAINST ABU DHABI LEADER SHEIK ZAYED AL NAHYAN AND OTHER ABU DHABI OFFICIALS WERE DROPPED THOSE CHARGES ALLEGED THAT THE OFFICIALS HARMED FIRST AMERICAN BY BENEFITING FROM B. C. C. I.'S COVERT AND THUS ILLEGAL OWNERSHIP OF THE U. S. BANK OTHER PARTS OF THAT SUIT FILED LAST YEAR IN FEDERAL COURT IN WASHINGTON D. C. WILL CONTINUE HOWEVER AND FIRST AMERICAN'S COURT APPOINTED TRUSTEE HARRY ALBRIGHT WILL RECEIVE FIFTY MILLION DOLLARS TO PURSUE THAT LEGAL ACTION THE BIGGEST PLUM FROM THE AGREEMENT IS THAT ABU DHABI NOW MUST HAND OVER SWALEH NAQVI A FORMER B. C. C. I. CHIEF EXECUTIVE OFFICER TO THE U. S. AUTHORITIES WITHIN THE NEXT SEVERAL WEEKS AND TO PROVIDE ACCESS TO SEVERAL OTHER SENIOR B. C. C. I. OFFICERS NOW IN CUSTODY IN THE EMIRATE U. S. INVESTIGATORS MAINTAIN THAT MR. NAQVI HOLDS THE KEY TO UNDERSTANDING MANY OF B. C. C. I.'S COMPLEX AND ILLEGAL DEALINGS MR. NAQVI'S TESTIMONY AND DOCUMENTS ALSO ARE LIKELY TO BE RELEVANT TO SEVERAL OTHER OUTSTANDING B. C. C. I. RELATED ISSUES AND PARTICULARLY ANY FURTHER ACTION AGAINST CLARK CLIFFORD AND ROBERT ALTMAN THE FORMER TOP OFFICERS OF FIRST AMERICAN WHO ALSO SERVED AS U. S. LAWYERS FOR B. C. C. I. AS WELL AS COUNSEL TO FIRST AMERICAN THE JUSTICE DEPARTMENT PROBABLY WILL FIRST MAKE A DECISION WHETHER THIS NEW EVIDENCE PROVIDES GROUNDS FOR A FEDERAL CASE AGAINST MESSRS CLIFFORD AND ALTMAN ACCORDING TO A PERSON CLOSE TO THE MATTER IF NOT THAT EVIDENCE WILL PROBABLY BE PASSED ON TO THE FEDERAL RESERVE BOARD WHICH HAS A PENDING ACTION AGAINST THE TWO MEN BEFORE AN ADMINISTRATIVE LAW JUDGE IN WASHINGTON D. C. IN AUGUST MR. ALTMAN WAS ACQUITTED OF CHARGES RELATED TO B. C. C. I.'S TAKEOVER OF FIRST AMERICAN THE MANHATTAN DISTRICT ATTORNEY'S OFFICE LATER DROPPED SIMILAR CHARGES AGAINST MR. CLIFFORD CITING HIS POOR HEALTH MESSRS CLIFFORD AND ALTMAN WHO HAVE CONSISTENTLY MAINTAINED THEIR INNOCENCE ALSO REMAIN DEFENDANTS IN THE FIRST AMERICAN TRUSTEE'S CIVIL RACKETEERING SUIT THE TRUSTEE LAST YEAR OVERSAW THE SALE OF MOST OF FIRST AMERICAN'S ASSETS TO FIRST UNION CORPORATION OF CHARLOTTE N. C. MR. NAQVI'S TESTIMONY AND DOCUMENTS ALSO ARE LIKELY TO SHED SOME LIGHT ON OTHERS INVOLVED IN THE B. C. C. I. SCANDAL WHO REMAIN A TARGET FOR U. S. AUTHORITIES THESE INCLUDE AGHA HASAN ABEDI B. C. C. I.'S AILING FOUNDER WHO WAS THE SUBJECT OF A WRIT ISSUED IN ABU DHABI IN RECENT DAYS HE STILL IS WANTED BY THE U. S. AUTHORITIES AS IS GHAITH PHARAON A ONE TIME INVESTOR IN AND FRONT MAN FOR THE ROGUE BANK IN RETURN FOR A PROMISE THAT U. S. PROSECUTORS WOULDN'T INITIATE LEGAL PROCEEDINGS AGAINST ABU DHABI OFFICIALS THE EMIRATE WAIVED ITS RIGHT TO FOUR HUNDRED MILLION DOLLARS OF U. S. CLAIMS AND MUCH OF THIS MONEY WILL BE USED TO HELP TO COMPENSATE DEPOSITORS CHRISTOPHER A. CRANE STEPHEN DAVIS AND PAMELA J. GRUNDER WERE ELECTED DIRECTORS OF THIS INTIMATE APPAREL MAKER MR. CRANE FORTY TWO YEARS OLD IS PRESIDENT AND OWNER OF BUSINESS REAL ESTATE INFORMATION CORPORATION AND A DIRECTOR OF BEEBA'S CREATIONS INCORPORATED HE SUCCEEDS ARJUN C. WANEY FOUNDER AND CHAIRMAN OF BEEBA'S WHICH OWNS FIFTY POINT EIGHT PERCENT OF BODY DRAMA'S STOCK OUTSTANDING MR. DAVIS FIFTY FOUR IS SENIOR VICE PRESIDENT OF BODY DRAMA MS. GRUNDER FORTY SEVEN IS VICE PRESIDENT OF MERCHANDISING AND MARKETING FOR RETAIL APPAREL GROUP THEIR ADDITION INCREASES THE BOARD TO SEVEN THE CANADIAN GOVERNMENT INVITED OIL AND GAS COMPANIES TO IDENTIFY AREAS OF EXPLORATION INTEREST IN CANADA'S WESTERN ARCTIC REGION A CALL FOR SUCH NOMINATIONS IS USUALLY FOLLOWED BY AN OFFERING OF CONCESSIONS TO POTENTIAL BIDDERS THE AREA INVOLVED INCLUDES THE BEAUFORT SEA AND MACKENZIE DELTA AND PORTIONS OF THE NORTHWEST AND YUKON TERRITORIES IT ALSO INCLUDES SEVERAL WESTERN ARCTIC ISLANDS INCLUDING BANKS ISLAND AND VICTORIA ISLAND LARGE OIL AND GAS DISCOVERIES HAVE BEEN MADE IN THE MACKENZIE DELTA AND BEAUFORT SEA REGION SINCE EXPLORATION STARTED IN THE EARLY NINETEEN SEVENTIES BUT NONE OF THE FINDS HAS BEEN BROUGHT INTO PRODUCTION BECAUSE OF HIGH PRODUCTION AND TRANSPORTATION COSTS AND AN ELVER IS A YOUNG SEAL LOTS OF P. R. TYPES TO DO IT WHAT HURTS IS THE LANDING WILLIAM G. COOLING FORTY NINE YEARS OLD WAS ELECTED TO THE BOARD OF THIS BOTTLING COMPANY INCREASING THE NUMBER OF DIRECTORS TO EIGHT MR. COOLING IS EXECUTIVE VICE PRESIDENT OF COLGATE PALMOLIVE COMPANY PANAMERICAN BEVERAGES IS A BOTTLER OF COCA COLA COMPANY SOFT DRINK PRODUCTS MEDTRONIC INCORPORATED NAMED ARTHUR D. COLLINS JUNIOR FORTY SIX YEARS OLD TO BE CHIEF OPERATING OFFICER OF THIS MANUFACTURER OF CARDIAC AND OTHER MEDICAL DEVICES MR. COLLINS HAD BEEN EXECUTIVE VICE PRESIDENT AND PRESIDENT OF MEDTRONIC'S INTERNATIONAL OPERATIONS HE STILL WILL HAVE EXTENSIVE INVOLVEMENT WITH THE INTERNATIONAL DIVISION COMPANY OFFICIALS SAID THE POST HAS BEEN OPEN SINCE MAY NINETEEN NINETY ONE WHEN WILLIAM W. GEORGE GAVE IT UP TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER MR. COLLINS JOINED MEDTRONIC IN MAY NINETEEN NINETY TWO FROM ABBOTT LABORATORIES WHERE HE HAD BEEN HEAD OF ABBOTT'S DIAGNOSTIC BUSINESS SINCE NINETEEN EIGHTY SIX HE WAS GIVEN CONSIDERABLE CREDIT AT ABBOTT FOR THE DEVELOPMENT OF THE IMX DIAGNOSTIC MACHINE A HIGHLY SUCCESSFUL PRODUCT THAT HOSPITAL LABORATORIES USE TO TEST FOR VARIOUS ILLNESSES THE DEVICE AND THE LABORATORY TESTS USED WITH IT HELPED MAKE ABBOTT A LEADING PLAYER IN THE MEDICAL DIAGNOSTICS FIELD A CLINTON ADMINISTRATION PANEL IS CONSIDERING A PROPOSAL TO FORCE FEDERAL WORKERS TO PAY UNION DUES IF THEY ARE REPRESENTED BY A UNION THE PLAN IS SEVERAL MAJOR STEPS AWAY FROM BECOMING LAW SINCE IT HASN'T YET BEEN BACKED BY THE WHITE HOUSE OR PROPOSED TO CONGRESS WHICH WOULD NEED TO VOTE IT INTO LAW LATER THIS WEEK THE NATIONAL PARTNERSHIP COUNCIL A PANEL OF GOVERNMENT OFFICIALS AND UNION LEADERS IS EXPECTED TO DECIDE WHETHER THE PLAN SHOULD BE PART OF THE COUNCIL'S PROPOSAL TO THE PRESIDENT NEXT MONTH FEDERAL EMPLOYEE UNIONS HAVE BEEN SEEKING A DUES PLAN FOR YEARS CURRENTLY ONLY ABOUT TWENTY PERCENT OF FEDERAL WORKERS PAY UNION DUES BUT ABOUT THREE TIMES THAT MANY ARE REPRESENTED UNDER COLLECTIVE BARGAINING AGREEMENTS THE MONEY GAP CAUSED BY THAT DIFFERENCE IS A CONTINUAL SOURCE OF IRRITATION FOR THE UNIONS THE PARTNERSHIP COUNCIL CREATED AFTER THE ADMINISTRATION ISSUED ITS PROPOSAL ON QUOTE REINVENTING GOVERNMENT QUOTE LAST YEAR ALSO IS WEIGHING A PLAN THAT WOULD GIVE WORKERS AND THE UNIONS MORE SAY OVER MATTERS THAT TYPICALLY HAVE BEEN MANAGEMENT'S DOMAIN INCLUDING WHICH EMPLOYEES TO CUT DURING DOWNSIZING AND OTHER WORK RULE DECISIONS PEOPLE FAMILIAR WITH THE DELIBERATIONS SAY THE COUNCIL HASN'T REACHED ANY CONSENSUS ON THE MATTER UNDER THE DUES PLAN IF SIXTY PERCENT OF ALL EMPLOYEES ELECT TO BE IN A BARGAINING UNIT THE ENTIRE UNIT WOULD BE SUBJECT TO EITHER PAYING UNION DUES OR AN ALTERNATIVE SERVICE FEE THE PLAN WAS DESCRIBED IN YESTERDAY'S EDITIONS OF THE WASHINGTON POST A SPANISH SHAREHOLDERS' ASSOCIATION FILED SUIT AGAINST PRICE WATERHOUSE AS AUDITORS OF BANCO ESPANOL DE CREDITO FOR FAILING TO DRAW ATTENTION TO THE FINANCIAL PROBLEMS OF THE TROUBLED SPANISH BANK PRICE WATERHOUSE SAID IT IS CONFIDENT BANESTO SHAREHOLDERS HADN'T BEEN MISLED BY ITS REPORTS ACCORDING TO THE ASSOCIATION FOR THE DEFENSE OF SHAREHOLDERS WHICH BROUGHT THE SUIT AGAINST PRICE WATERHOUSE THE CENTRAL BANK'S DE FACTO TAKEOVER OF BANESTO LAST MONTH WAS LONG OVERDUE AND SHOULD HAVE BEEN ACCELERATED BY BANESTO'S AUDITORS IN DECEMBER THE BANK OF SPAIN FIRED BANESTO'S CHAIRMAN MARIO CONDE AND HIS ENTIRE BOARD ASSERTING THAT THE BANK'S PRECARIOUS FINANCIAL SITUATION THREATENED THE STABILITY OF THE ENTIRE SPANISH BANKING SYSTEM ENRICO CASSANY THE CHAIRMAN OF THE BARCELONA BASED INVESTORS GROUP SAID IN A TELEPHONE INTERVIEW QUOTE THE BANK WAS ALREADY IN A STATE OF TECHNICAL BANKRUPTCY WHEN ITS ANNUAL REPORT WAS PUBLISHED LAST SPRING THE AUDITORS SHOULD HAVE GIVEN MORE EXPLICIT WARNINGS GILLETTE COMPANY SEEKING TO CUT COSTS IN A COMPETITIVE PERSONAL CARE INDUSTRY SAID IT WILL REORGANIZE FACILITIES WORLDWIDE SHEDDING TWO THOUSAND EMPLOYEES AS IT ADDS ABOUT THAT MANY POSITIONS ELSEWHERE THE JOB CUTS MOST OF WHICH WILL OCCUR OVERSEAS REPRESENT ABOUT SIX PERCENT OF GILLETTE'S THIRTY FOUR THOUSAND EMPLOYEES AND WILL PRODUCE A FOURTH QUARTER CHARGE OF ONE HUNDRED SIXTY FOUR MILLION DOLLARS OR SEVENTY FOUR CENTS A SHARE ALL BUT WIPING OUT THE SEVENTY FIVE CENTS A SHARE PROFIT ANALYSTS HAD EXPECTED IN THE YEAR EARLIER PERIOD GILLETTE HAD NET INCOME OF ONE HUNDRED THIRTY FIVE POINT THREE MILLION DOLLARS OR SIXTY ONE CENTS A SHARE GILLETTE SAID THE REALIGNMENT WOULD GENERATE COST SAVINGS BEGINNING IN NINETEEN NINETY FIVE BUT IT WASN'T SPECIFIC UNDER THE PLAN GILLETTE WILL CLOSE SOME OF ITS SIXTY WORLD WIDE FACILITIES AND CONVERT MULTIPLE PRODUCT MANUFACTURING SITES INTO MORE EFFICIENT SINGLE PRODUCT PLANTS THE CONVERSIONS ARE EXPECTED TO LOWER INVENTORY EXPENSES AND INCREASE PRODUCTION QUOTE THIS ISN'T A RESTRUCTURING IN THE TRADITIONAL SENSE QUOTE SAID ALFRED ZEIEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE AREN'T DOWNSIZING ANALYSTS SAID THE MOVES DOVETAILED WITH GILLETTE'S PLANS TO COMPETE MORE AGGRESSIVELY WITH INDUSTRY GIANTS INCLUDING PROCTER AND GAMBLE COMPANY AND COLGATE PALMOLIVE COMPANY IN SUCH PRODUCTS AS TOOTHBRUSHES AND MOUTHWASH GILLETTE'S PRESENCE IN SOME OF THESE MARKETS IS IN ITS INFANCY BY CUTTING COSTS AT PLANTS OVERSEAS GILLETTE MAY BE ABLE TO OFFSET THE ADDED EXPENSES OF MARKETING NEWER PRODUCTS ALTHOUGH GILLETTE HAS FORTY PERCENT OF THE GLOBAL SHAVING MARKET ITS ORAL B. LABORATORIES UNIT HAS A GOAL OF ONE POINT FIVE PERCENT TO THREE PERCENT MARKET SHARE IN THE TOOTPASTE AND MOUTHRINSE BUSINESSES THIS YEAR MR. ZEIEN IN A TELEPHONE INTERVIEW WITH ANALYSTS AND REPORTERS SAID THE COMPANY PLANS TO SPEND AN ADDITIONAL ONE HUNDRED MILLION DOLLARS DESIGNING AND ROLLING OUT PRODUCTS IN NINETEEN NINETY FOUR GILLETTE ADDED THAT IT WILL REPORT RECORD QUARTERLY SALES FOR THE FOURTH QUARTER TOPPING THE ONE POINT FIVE BILLION DOLLARS IT POSTED IN NINETEEN NINETY TWO'S FOURTH QUARTER IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY GILLETTE SHARES CLOSED AT FIFTY NINE POINT SIX TWO FIVE DOLLARS UP ONE POINT ONE TWO FIVE DOLLARS ON VOLUME OF SEVEN HUNDRED THIRTY SEVEN THOUSAND SHARES GILLETTE WHICH LIKES TO CHARGE PREMIUM PRICES DOESN'T WANT TO DISCOUNT ITS ALTERNATIVE IS AGGRESSIVE ADVERTISING AS A RESULT PREDICTS ANDREW SHORE AN ANALYST FOR PAINEWEBBER GILLETTE'S ADVERTISING BUDGET IS LIKELY TO INCREASE TO EIGHT POINT NINE PERCENT OF SALES THIS YEAR FROM JUST ABOVE EIGHT PERCENT IN NINETEEN NINETY THREE MR. SHORE SAID HE ISN'T REVISING HIS NINETEEN NINETY FOUR EARNINGS ESTIMATE OF THREE DOLLARS AND TEN CENTS A SHARE WHEN TRAVELING MORE BUSINESS PEOPLE ARE LUGGING ALONG A NEWFANGLED TYPE OF LAPTOP COMPANION CHILDREN FUELING THE TREND ARE THE PREVALENCE OF TWO CAREER COUPLES THE POPULARITY OF COMBINING BUSINESS AND PLEASURE TRIPS AND THE SPREAD OF LOW AIR FARES REQUIRING WEEKEND STAYOVERS OF THE TWO HUNDRED SEVENTY EIGHT MILLION BUSINESS TRIPS TAKEN IN NINETEEN NINETY TWO SIXTEEN PERCENT INCLUDED CHILDREN UP FROM THIRTEEN PERCENT IN NINETEEN NINETY ONE REPORTS THE TRAVEL INDUSTRY ASSOCIATION OF AMERICA QUOTE WITH THE PROLIFERATION OF FREQUENT FLIER MILES IT'S BECOME VERY EASY FOR MOM OR DAD TO TAKE FAMILY ALONG QUOTE SAYS JANET TICE A FAMILY TRAVEL CONSULTANT AND PRESIDENT OF GREAT DESTINATIONS TRAVEL COMPANY IN DURHAM N. C. SOME HOTELS AND AIRLINES ARE TAILORING SERVICES TO HELP HARRIED WORKING PARENTS IN ORLANDO FLORIDA THE EMBASSY SUITES LAKE BUENA VISTA RESORT OPERATES SUPERVISED PLAY CENTERS FOR YOUNG GUESTS IT OFFERS CELLULAR PHONES TO PARENTS WHO MUST LEAVE OLDER CHILDREN AT THE HOTEL DURING MEETINGS AND CERTAIN ROOMS ARE BABY PROOFED WITH COVERED ELECTRICAL OUTLETS AND ROUNDED FURNITURE CORNERS THE EMBASSY SUITES CENTER CITY IN PHILADELPHIA KEEPS YOUNGSTERS OCCUPIED WITH ITS OWN PLEASE TOUCH KIDDIE MUSEUM IN NOVEMBER UNITED AIRLINES BEGAN DISTRIBUTING A CHILDREN'S MAGAZINE CALLED PLANE FUN WITH GAMES PUZZLES JOKES AND ARTICLES ON TOPICS LIKE HOW PLANES FLY AND EDIBLE INSECTS UNITED HOPES TO PREVENT BORED KIDS FROM BOTHERING OTHER PASSENGERS WE FELT THERE WAS A HOLE FOR CHILDREN'S SERVICE ON OUR AIRCRAFT A UNITED SPOKESMAN SAYS STILL THERE ARE SOME BUILT IN LIMITS TO THE TREND BUSINESS TRAVEL OFTEN INVOLVES THE UNPREDICTABLE POSTPONED MEETINGS MISSED FLIGHTS THAT CAN THROW A WRENCH IN CHILD CARE PLANS UNABLE TO FIND A BABY SITTER MS. TICE REMEMBERS HAVING TO SEAT HER TODDLER ON HER BROCHURE TABLE AT A TRADE SHOW IN CHICAGO SHE RECOMMENDS BRINGING A RELATIVE OR NANNY ALONG ON BUSINESS TRIPS YOU ALMOST HAVE TO HAVE SOMEONE WHO CAN STAY AND BE RESPONSIBLE FOR THE CHILD ONEUPMANSHIP IN AIRLINE PROMOTIONALS IN NINETEEN NINETY FOUR IS EXPECTED TO MAKE IT EASIER TO GET FARE DISCOUNTS AND FREQUENT FLIER POINTS WITHOUT EVER SETTING FOOT NEAR AN AIRPLANE A NEW GENERATION OF AIRLINE PROMOTIONS GOES WAY BEYOND THE MARKETING TIE INS WITH BANK CREDIT CARDS HOTEL AND CAR RENTAL COMPANIES AND LONG DISTANCE PHONE FIRMS MORE AND MORE TRAVELERS ARE SNAPPING UP FLIGHT DEALS THROUGH DECIDEDLY ROUTINE CHORES LIKE GROCERY SHOPPING EATING OUT OR VISITING THE EYE DOCTOR BUY A QUOTE HOME ALONE THE SECOND QUOTE VIDEO INSIDE ARE COUPONS GOOD FOR UP TO SEVENTY DOLLARS OFF DOMESTIC TICKETS ON AMERICAN AIRLINES WHILE FLYING ON NORTHWEST AIRLINES DONATE FIFTY DOLLARS TO CHARITIES LIKE THE BOYS AND GIRLS CLUBS AND GET FIVE HUNDRED FREQUENT FLIER MILES BUY A PAIR OF SWAN OPTICAL GLASSES FROM THE OPTOMETRIST GET UP TO FIFTY DOLLARS OFF ROUND TRIP FARES ON CONTINENTAL AIRLINES THERE WERE TWO HUNDRED FIFTY SUCH PROMOTIONAL PROGRAMS IN NINETEEN NINETY THREE COMPARED WITH ONE HUNDRED FIFTY IN NINETEEN NINETY TWO THAT'S BECAUSE AIRLINES BELIEVE THEY PROVIDE AN EDGE OVER RIVALS PARTICULARLY WHEN TARGETING REGIONS OR CITIES COUPONS ARE MORE DIFFICULT FOR AIRLINE COMPETITORS TO SPOT AND RESPOND TO SAYS TOM PARSONS PUBLISHER OF BEST FARES MAGAZINE IT'S A GRAY MARKET UNLIKE COMPUTERIZED FARE CUTS WHICH CAN BE MATCHED WITHIN HOURS BUT THAT DOESN'T KEEP THE AIRLINES FROM TRYING AFTER THE OLIVE GARDEN ITALIAN RESTAURANT CHAIN STARTED A SUMMER PROMOTION GIVING PATRONS COUPON BOOKLETS WITH DISCOUNTS ON CONTINENTAL FLIGHTS AMERICAN UNITED NORTHWEST AND U. S. AIR GROUP INCORPORATED ALL JUMPED IN HONORING THE CONTINENTAL COUPONS ON CERTAIN ROUTES A SIMILAR BATTLE ERUPTED WHEN THE STOP AND SHOP SUPERMARKETS CHAIN BEGAN OFFERING SHOPPERS COLLECTING ONE HUNDRED DOLLARS IN GROCERY RECEIPTS UP TO ONE HUNDRED DOLLARS OFF DELTA AIR LINES TICKETS AT LEAST TWO OTHER AIRLINES JOINED IN TO HONOR THE DELTA COUPONS SALES OF RECREATIONAL VEHICLES LONG THE DOMAIN OF THE SENIOR SET ARE ON A ROLL FOR THEIR TRAVEL MONEY MORE YOUNG COUPLES ARE SAYING R. V.S R. US RIDING A SURGE IN DEMAND RETAIL SALES OF R. V.S TRAILERS MOTOR HOMES AND THE LIKE ARE EXPECTED TO APPROACH NINE POINT SIX BILLION DOLLARS IN NINETEEN NINETY THREE THE INDUSTRY'S BIGGEST YEAR SINCE NINETEEN SEVENTY EIGHT FROM JANUARY TO OCTOBER WHOLESALE SHIPMENTS JUMPED FOURTEEN PERCENT FROM A YEAR EARLIER SAYS THE RECREATIONAL VEHICLE INDUSTRY ASSOCIATION A NATIONWIDE SURVEY BY THE UNIVERSITY OF MICHIGAN FINDS R. V. OWNERS FEEL THIS MODE OF TRAVEL IS COMFORTABLE CONVENIENT AND A GOOD VALUE PROPONENTS SAY R. V.S ELIMINATE TRADITIONAL TRAVEL HASSLES LIKE LOST LUGGAGE POOR SERVICE AND NONREFUNDABLE DEPOSITS DEALERS HAVE BEEN SURPRISED BY THE RECENT POPULARITY OF R. V.S AMONG YOUNG FAMILIES SHIPMENTS OF FOLDING CAMPING TRAILERS THE TYPICAL ENTRYLEVEL VEHICLE FOR YOUNG COUPLES INTO THE R. V. MARKET ROCKETED FORTY SIX PERCENT THROUGH THE FIRST TEN MONTHS OF NINETEEN NINETY THREE COMPARED WITH A YEAR EARLIER AND THE UNIVERSITY OF MICHIGAN FOUND THAT THIRTY SIX PERCENT OF EIGHTEEN TO THIRTY FOUR YEAR OLDS PLANNED TO PURCHASE AN R. V. THE HIGHEST PROPORTION OF ANY AGE GROUP LEE FITZGERALD PRESIDENT OF VENTURE OUT A CAMPBELL CALIFORNIA DEALERSHIP WHOSE MOTOR HOMES ARE PRICED FROM THIRTY THOUSAND DOLLARS TO ONE HUNDRED FIFTY FIVE THOUSAND DOLLARS HAS NOTICED THE CHANGE WE'VE BEEN SEEING MORE BABY STROLLERS IN HERE LATELY HE SAYS UNITED AIRLINES SAID IT WILL BEGIN TESTING A SMOKING BAN ON SOME INTERNATIONAL FLIGHTS STARTING IN MARCH THE MOVE FOLLOWS A SIMILAR PLAN BY NORTHWEST AIRLINES WHICH IS SET TO BEGIN BANNING SMOKING IN FIRST CLASS CABINS ON OVERSEAS FLIGHTS ASKING CHICAGO CABBIES ABOUT THEIR MOST UNUSUAL REQUESTS AN OMNI CHICAGO HOTEL SURVEY QUOTES DRIVER GARY SASSO QUOTE A YOUNG MARRIED COUPLE WANTED TO MAKE LOVE IN THE BACK SEAT WHILE DRIVING DOWN LAKE SHORE DRIVE IN THE MOONLIGHT QUOTE MOST TOURISTS THE SURVEY FOUND SIMPLY WANTED A RIDE TO THE SEARS TOWER CRUDE OIL PRICES PLUNGED BELOW FIFTEEN DOLLARS A BARREL AMID THE GROWING BELIEF THAT OPEC MINISTERS WON'T MEET ANYTIME SOON TO HAMMER OUT PRODUCTION CUTS IN ADDITION SEVERAL ESTIMATES PUT CRUDE OIL PRODUCTION BY THE ORGANIZATION OF EXPORTING COUNTRIES ANYWHERE FROM THREE HUNDRED THOUSAND TO FOUR HUNDRED THOUSAND BARRELS A DAY ABOVE THE CARTEL'S QUOTA OPEC'S OVERPRODUCTION ALONG WITH INCREASED OUTPUT FROM OTHER PARTS OF THE GLOBE NOTABLY THE NORTH SEA HAVE GLUTTED WORLD OIL MARKETS AND PUSHED PRICES TO FIVE YEAR LOWS QUOTE THE ODDS ARE PRETTY LOW THAT OPEC WILL MOVE UP ITS MEETING QUOTE SAID WILLIAM RANDOL AN OIL ANALYST AT SALOMON BROTHERS INCORPORATED IN NEW YORK HE SAID THAT WITH CURRENT PRODUCTION AND WEAK DEMAND IN EUROPE AND JAPAN PRICES WILL CONTINUE TO BE WEAK FOR SOME TIME THE FAINT HOPE THAT OPEC MINISTERS WOULD ADVANCE THEIR MEETING SCHEDULED FOR MARCH TWENTY FIFTH WAS ENOUGH TO SPARK A RALLY LAST WEEK BUT YESTERDAY'S DECLINE ATE AWAY ALMOST ALL OF THE GAINS LIGHT SWEET CRUDE FOR FEBRUARY DELIVERY FELL SIXTY FIVE CENTS A BARREL TO SETTLE AT FOURTEEN DOLLARS AND SIXTY SEVEN CENTS ON THE NEW YORK MERCANTILE EXCHANGE IN ADDITION SEVERAL LARGE U. S. REFINERS INCLUDING ATLANTIC RICHFIELD COMPANY CUT THE PRICE THEY WILL PAY AT THE PLANT GATE FOR MANY TYPES OF CRUDE OIL BY AS MUCH AS SEVENTY FIVE CENTS A BARREL MARKET PARTICIPANTS CITED A REPORT IN THE MIDDLE EAST ECONOMIC SURVEY AN OIL INDUSTRY TRADE PUBLICATION THAT PROSPECTS FOR MOVING UP THE MEETING ARE LOOKING INCREASINGLY UNLIKELY THE PUBLICATION ALSO SAID OPEC OUTPUT IN DECEMBER AVERAGED TWENTY FOUR POINT EIGHT MILLION BARRELS A DAY COMPARED WITH A CEILING OF TWENTY FOUR POINT FIVE TWO MILLION BARRELS OTHER ESTIMATES PUT OPEC PRODUCTION EVEN HIGHER MR. RANDOL OF SALOMON BROTHERS SAID SEVERAL INFLUENTIAL OPEC MEMBERS HAVE CONDITIONED ANY PRODUCTION CUTS ON REDUCTIONS IN OUTPUT FROM NON OPEC COUNTRIES THE OIL MINISTER OF OMAN RECENTLY MADE A WIDELY PUBLICIZED PLEA TO NORTH SEA PRODUCERS BRITAIN AND NORWAY AND CAME AWAY EMPTY HANDED MR. RANDOL THINKS THE OMANI MINISTER WILL TRY AGAIN AND GET THE SAME RESULT THE PROBABILITY OF SUCCESS IS VIRTUALLY NIL HE SAID THE FREEZING WEATHER IN MUCH OF THE NORTHERN HALF OF THE COUNTRY BOOSTED NATURAL GAS PRICES BUT WASN'T ENOUGH TO KEEP HEATING OIL PRICES FROM PLUNGING ALONG WITH CRUDE AFTER TRADING AS HIGH AS TWO DOLLARS AND TWENTY CENTS PER MILLION BRITISH THERMAL UNITS NATURAL GAS FOR FEBRUARY DELIVERY SETTLED AT TWO POINT ONE FIVE SEVEN DOLLARS UP ZERO POINT ONE CENT ON THE NEW YORK MERCANTILE EXCHANGE FEBRUARY HEATING OIL FELL ONE POINT FOUR ONE CENTS A GALLON TO FORTY SIX POINT SEVEN SIX CENTS AND FEBRUARY GASOLINE SANK TWO POINT ONE TWO CENTS TO FORTY ONE POINT SEVEN CENTS A GALLON SOME TRADERS SAID THE STEEP DROP IN PETROLEUM PRODUCTS PRICES WAS CAUSED IN PART BY CONCERN THAT M. G. CORPORATION THE U. S. TRADING UNIT OF THE GERMAN ENGINEERING AND METALS CONGLOMERATE METALLGESELLSCHAFT A. G. MIGHT HAVE TO LIQUIDATE SUBSTANTIAL ENERGY HOLDINGS THE COMPANY LAST WEEK ANNOUNCED POTENTIAL LOSSES IN ENERGY DERIVATIVES OF NEARLY ONE BILLION DOLLARS DERIVATIVES ARE FINANCIAL CONTRACTS WHOSE VALUES ARE DERIVED FROM THE PRICE OF AN UNDERLYING ASSET SUCH AS CRUDE OIL AND OTHER ENERGY PRODUCTS PRECIOUS METALS GOLD FUTURES PRICES SLIPPED AFTER OVERNIGHT LIQUIDATION OF PRECIOUS METALS BY MIDDLE EASTERN INVESTOR SYNDICATES AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS DOWN ONE DOLLAR AND FIFTY CENTS TO THREE HUNDRED EIGHTY FIVE DOLLARS AND SEVENTY CENTS AN OUNCE GOLD HAD DECLINED SHARPLY IN A MORNING SELL OFF AFTER OVERNIGHT SELLING BY THE INVESTOR SYNDICATES BUT GOLD DEALERS RETURNED TO THE MARKET AS BUYERS IN THE AFTERNOON HELPING THE MARKET REGAIN LOST GROUND WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH SAID THE OUTLOOK FOR GOLD IN THE SHORT TERM DOESN'T LOOK GOOD BECAUSE OF THE STRENGTH OF THE U. S. BOND AND STOCK MARKETS GRAINS AND SOYBEANS CORN AND SOYBEAN FUTURES PRICES SLUMPED AFTER A GOVERNMENT REPORT SHOWED EXCESSIVE LONG POSITIONS OR WAGERS THAT FUTURES PRICES WOULD INCREASE IN THE MARKET ANALYSTS SAID AT THE CHICAGO BOARD OF TRADE CORN FOR MARCH DELIVERY WAS DOWN FIVE POINT TWO FIVE CENTS TO THREE POINT OH THREE SEVEN FIVE DOLLARS A BUSHEL WHILE MARCH SOYBEANS FELL THIRTEEN POINT TWO FIVE CENTS TO SIX POINT EIGHT EIGHT FIVE DOLLARS A BUSHEL THE COMMODITY FUTURES TRADING COMMISSION RELEASED A COMMITMENT OF TRADERS REPORT SHOWING A SHARP INCREASE IN LONG POSITIONS LAST WEEK AS A RESULT TRADERS BEGAN SELLING FUTURES CONTRACTS YESTERDAY SAID DANIEL W. BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE COMPANY CHICAGO REPORTS THAT PARCHED SOYBEAN GROWING REGIONS OF BRAZIL GOT RAIN ALSO EXERTED DOWNWARD PRESSURE ON THE MARKET SAY GOODNIGHT TO NIGHT TRAP THE CONTROVERSIAL VIOLENT C. D. ROM VIDEO GAME PULLED FROM THE SHELVES OF TOY QUOTE R. QUOTE US LAST MONTH HAS BEEN RECALLED BY ITS MANUFACTURER SEGA ENTERPRISES LIMITED WHICH IS BASED HERE NIGHT TRAP WAS SINGLED OUT IN CONGRESSIONAL DEBATE IN DECEMBER CONCERNING THE POSSIBLE CREATION OF A RATINGS AGENCY TO MONITOR SEX AND VIOLENCE IN VIDEO GAMES IN NIGHT TRAP PLAYERS TRY TO THWART BLACK HOODED ZOMBIES INTENT ON CAPTURING AND KILLING SCANTILY CLAD SORORITY WOMEN SEGA SAID IT IS URGING RETAILERS TO RETURN THE GAME WHICH SELLS FOR AROUND FIFTY DOLLARS THE COMPANY SAID IT PLANS TO RE EDIT THE GAME AND RELEASE A NEW VERSION WHEN AN INDUSTRY WIDE RATINGS SYSTEM IS IN PLACE STERLING WINTHROP INCORPORATED SAID A U. S. APPEALS COURT HAD UPHELD A RULING THAT BAYER A. G. OF GERMANY HAD INFRINGED STERLING WINTHROP'S QUOTE BAYER QUOTE TRADEMARK AND TRADE NAME THE COURT ENJOINED BAYER A. G. FROM USING THE WORD BAYER IN ANY ADVERTISEMENT OR MATERIALS IN THE U. S. HOWEVER AT THE SAME TIME THE U. S. COURT OF APPEALS FOR THE SECOND CIRCUIT IN NEW YORK STRUCK DOWN AN EARLIER INJUNCTION ISSUED BY THE U. S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK THAT SEVERELY RESTRICTED BAYER FROM USING ITS NAME IN THE U. S. IT SAID THE PREVIOUS RULING WAS OVERLY BROAD AND MUST BE MODIFIED BY THE LOWER COURT MILES INCORPORATED BAYER A. G.'S U. S. UNIT SAID IT WAS PLEASED WITH THE DECISION STERLING A UNIT OF EASTMAN KODAK COMPANY SELLS ONE HUNDRED TWENTY FIVE MILLION DOLLARS OF ASPIRIN AND RELATED PRODUCTS UNDER THE BAYER TRADEMARK IN THE U. S. AND SPENDS FIFTY MILLION DOLLARS A YEAR PROMOTING AND ADVERTISING IT ACCORDING TO THE RULING STERLING ACQUIRED THE EXCLUSIVE RIGHTS TO THE BAYER TRADEMARK IN THE U. S. IN NINETEEN EIGHTEEN WHEN THE ALIEN PROPERTY CUSTODIAN SEIZED THE U. S. ASSETS OF BAYER A. G.'S PREDECESSOR DURING WORLD WAR ONE AND SOLD THEM TO STERLING WINTHROP AT AUCTION OVER THE COURSE OF THE NEXT FORTY YEARS THE GERMAN COMPANY MADE SEVERAL UNSUCCESSFUL ATTEMPTS TO REGAIN THE BAYER TRADEMARK AND TRADE NAME IN THE U. S. IN MAY NINETEEN NINETY TWO THE U. S. DISTRICT COURT UPHELD STERLING'S CONTENTIONS AND GRANTED AN INJUNCTION AGAINST BAYER A. G. FOR VIOLATING AN AGREEMENT TO USE THE CORPORATE NAME ONLY IN SOME INSTITUTIONAL ADVERTISING BUT THE APPEALS COURT AGREED WITH BAYER A. G.'S CONTENTIONS THAT THE PREVIOUS INJUNCTION WAS UNJUST IN SEVERAL INSTANCES SUCH AS BARRING BAYER FROM USING THE BAYER NAME IN CONNECTION WITH ANY MEDICAL SYMPOSIUM CONFERENCE OR SEMINAR WITHIN THE U. S. MR. SPIX WAS READY FOREWARNED BY HIS ACCOUNTANT THE ATTORNEY ALREADY HAD DROPPED MEMBERSHIP IN THE POSH BUCKHEAD CLUB AND CANCELED PLANS TO BUY A HOME COMPUTER HE SCALED BACK SPENDING ON FINE RESTAURANTS AND CUSTOM MADE SUITS AND HE TONED DOWN HIS CHRISTMAS GIFTS THIS YEAR HIS NIECE AND NEPHEWS RECEIVED U. S. SAVINGS BONDS MR. SPIX AND FOUR REAL ESTATE INVESTMENT PARTNERS ALSO DECIDED TO WAIT ANOTHER YEAR BEFORE BREAKING GROUND FOR A NEW FRANCHISED RESTAURANT WHILE GROUSING ABOUT TAXES IS PRACTICALLY A NATIONAL PASTIME ESPECIALLY AMONG THE RICH INTERVIEWS WITH DOZENS OF TAXPAYERS AND ACCOUNTANTS ACROSS THE U. S. SHOWED THAT HIGH INCOME TAXPAYERS HAVE BEEN MOVING FAST TO ADAPT TO THE TAX ACT WHICH COVERS WAGES PAID IN NINETEEN NINETY THREE MANY ARE PUTTING OFF DISCRETIONARY PURCHASES AND CUTTING BACK ON SAVINGS BUT MANY ALSO ARE DEVISING WAYS TO OFFSET THE NEW TAX BITE BY ADJUSTING THEIR INCOME THE SO CALLED SOAK THE RICH TAX AFFECTS ONLY TWO PERCENT OF TAXPAYERS BUT ITS IMPACT COULD BE FELT WELL INTO THE COUNTRY'S ECONOMIC FIBER OF LOWER AND MIDDLE INCOME TAXPAYERS AS WELL AS THEIR FIRST PAYCHECKS OF THE YEAR COME IN OR THEY PREPARE TO DRAW UP ESTIMATED TAX PAYMENTS MANY HIGH INCOME WAGE EARNERS ARE JUST NOW REALIZING THE TAX'S EFFECT THOUGH MANY INSIST THEY WILL HAVE TO CUT SPENDING THE IMPACT OF ANY CUTBACK MAY BE MUTED BY THE ECONOMY'S RECENT STRENGTH THE NEW LAW RAISES THE PREVIOUS MARGINAL TAX CEILING TO THIRTY SIX PERCENT FROM THIRTY ONE PERCENT FOR INDIVIDUALS WITH TAXABLE INCOME OVER ONE HUNDRED FIFTEEN THOUSAND DOLLARS HEADS OF HOUSEHOLDS WITH TAXABLE INCOMES OVER ONE HUNDRED TWENTY SEVEN THOUSAND FIVE HUNDRED DOLLARS AND COUPLES FILING JOINTLY WITH TAXABLE INCOMES OVER ONE HUNDRED FORTY THOUSAND DOLLARS ANYTHING OVER TWO HUNDRED FIFTY THOUSAND DOLLARS GOES TO A THIRTY NINE POINT SIX PERCENT MARGINAL RATE IN ADDITION THE ONE HUNDRED THIRTY FIVE THOUSAND DOLLAR CEILING ON THE ONE POINT FOUR FIVE PERCENT MEDICARE TAX WAS DROPPED SO NOW ALL OF A PERSON'S TAXABLE INCOME IS SUBJECT TO THE TAX SOME FOUR MILLION RETIRED PERSONS ALSO WILL HAVE TO PAY ABOUT FOUR BILLION DOLLARS MORE IN TAXES ON THEIR SOCIAL SECURITY INCOME ANNE HARRIS OF WACO TEXAS WHO WILL BE EIGHTY IN APRIL FOR INSTANCE EXPECTS TO PAY ONE THOUSAND DOLLARS MORE IN TAXES THIS YEAR BECAUSE HER SIX HUNDRED TWENTY SEVEN DOLLAR A MONTH SOCIAL SECURITY PAYMENT WILL BE TAXED AT EIGHTY FIVE PERCENT INSTEAD OF FIFTY PERCENT QUOTE IN VIEW OF THAT QUOTE SHE SAYS QUOTE I'M NOT GOING TO BE ABLE TO GIVE AS MUCH AWAY TO CHARITY QUOTE MOST OF THOSE AFFECTED ARE TAKING IT IN STRIDE HIGHER TAXES WON'T RUIN MY LIFE BUT I DON'T SEE IT HELPING THE COUNTRY EITHER SAYS SAN FRANCISCO ANESTHESIOLOGIST STEVEN GOLDFIEN DOCTOR GOLDFIEN EXPECTS TO PAY TWELVE THOUSAND DOLLARS MORE A YEAR IN TAXES ON THE COMBINED INCOME IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS HE AND HIS WIFE EARN THEY HAVE SCRAPPED PLANS TO BUY A LARGER HOME AND WILL FALL SHORT OF THEIR GOAL OF PUTTING ASIDE TWENTY PERCENT OF THEIR INCOME FOR RETIREMENT TO BE SURE THE EFFECT ON THE ECONOMY IS UNCLEAR THE TWENTY SEVEN BILLION DOLLARS OR SO THE GOVERNMENT EXPECTS TO RAISE THIS YEAR FROM HIGHER INDIVIDUAL TAXES WILL HELP REDUCE THE DEFICIT WHICH IN TURN COULD HELP HOLD DOWN INTEREST RATES AND STIMULATE GROWTH AT THE SAME TIME THOUGH A SIGNIFICANT CUTBACK IN SPENDING TO PAY THE TAXES COULD SLOW THE ECONOMIC PACE WORKMEN WON'T BE BUILDING THAT RESTAURANT FOR MR. SPIX AND HIS PARTNERS FOR INSTANCE AND THE EMPLOYMENT OPPORTUNITIES FOR RESTAURANT PERSONNEL WILL DWINDLE IF DINING OUT DECLINES ECONOMISTS EXPECT INDIVIDUALS TO PAY FOR HALF OF THE TAX BITE BY REDUCING SPENDING AND THE REST BY REDUCING SAVINGS OR SELLING SOME INVESTMENTS TO MAINTAIN SPENDING PATTERNS FOR ALAN GRAHAM THE HEAD OF VASCULAR SURGERY AT A MEDICAL SCHOOL IN NEW JERSEY IT WILL BE A LITTLE OF BOTH HIS ACCOUNTANT TOLD HIM THAT BASED ON HIS SALARY WHICH THE FORTY YEAR OLD DOCTOR GRAHAM DID NOT WANT DISCLOSED HE WOULD HAVE TO PAY ABOUT TWENTY THREE THOUSAND DOLLARS MORE A YEAR IN TAXES AS A RESULT HE SAYS WE WILL PUT OFF THE THIRTY THOUSAND DOLLAR ADDITION TO THE HOUSE WE HAD PLANNED TO BEGIN THIS SPRING AND I WILL CUT BACK BY SIX THOUSAND DOLLARS OR SEVEN THOUSAND DOLLARS THE MONEY I PUT INTO MY RETIREMENT PLAN BUT IF PRELIMINARY ESTIMATES OR JANUARY'S FIRST PAYCHECK DON'T INDUCE STICKER SHOCK SIGNING TAX FORMS FOR NINETEEN NINETY THREE MIGHT SOME FINANCIAL ADVISERS SAY THAT'S WHEN THE TOTAL WILL ALL ADD UP SAYS MIKE BAYLOR MANAGING PARTNER FOR COOPERS AND LYBRAND IN FORT WORTH HE EXPECTS MANY PEOPLE WILL BE SURPRISED AT HOW LARGE THE INCREASE IS TAXPAYERS WILL HAVE THE OPTION OF PAYING ONE THIRD OF THEIR NINETEEN NINETY THREE TAX INCREASE THIS YEAR AND WITHOUT PENALTY THE REST IN TWO ADDITIONAL YEARLY INSTALLMENTS IF YOU'RE EARNING BETWEEN ONE HUNDRED FIFTY THOUSAND DOLLARS AND THREE HUNDRED THOUSAND DOLLARS AND SIMPLY WERE TOO BUSY TO PAY ATTENTION AND MAKE SOME CHANGES YOU WILL BE ABSOLUTELY SHOCKED THIS MONTH SAYS LARRY WINTER A FINANCIAL PLANNER IN MINNEAPOLIS HIS ADVICE TO CLIENTS IS TO INCREASE THE SIZE OF THEIR HOME MORTGAGES BECAUSE THE INTEREST PAID IS REALLY THE ONLY PLACE LEFT WHERE YOU CAN STILL GET THE LARGE DEDUCTION A STUDY OF AFFLUENT HOUSEHOLDS BY FIDELITY INVESTMENTS LAST NOVEMBER FOUND ONLY SEVENTEEN PERCENT QUOTE STRONGLY FAMILIAR QUOTE WITH THE NEW TAX LAWS THAT HAD BEEN PASSED THREE MONTHS EARLIER THE FIRM UNDERTOOK THE SURVEY SAID NEAL LITVACK EXECUTIVE VICE PRESIDENT BECAUSE WE WERE SOMEWHAT PERPLEXED THERE WASN'T AN ENORMOUS INCREASE IN PEOPLE INVESTING IN TAX ADVANTAGED VEHICLES SUCH AS MUNICIPAL BONDS THE TAX ACT WILL SHIFT SAVINGS PATTERNS FOR SURE TAXABLE BONDS AND HIGH DIVIDEND STOCK ARE LESS ATTRACTIVE SAY FINANCIAL PLANNERS BECAUSE THAT INCOME GETS TAXED AT A TAXPAYER'S HIGHEST RATE AT THE SAME TIME TAX EXEMPT STATE AND LOCAL SECURITIES LOOK BETTER AS DO STOCKS THAT MAY GAIN IN PRICE LONG TERM CAPITAL GAINS ON THOSE STOCKS REMAINS TAXABLE AT THE TWENTY EIGHT PERCENT RATE BUT MANY INDIVIDUALS WILL CUT BACK ON INVESTMENTS OF ANY SORT FOR DUNMAN PERRY JUNIOR CHAIRMAN OF PERRY EQUIPMENT CORPORATION IN MINERAL WELLS TEXAS THE TAX RISE MEANS PUTTING TWENTY THOUSAND DOLLARS LESS INTO MUNICIPAL BONDS THIS YEAR THAT'S A LITTLE MORE THAN THE AMOUNT BY WHICH HIS TAXES GO UP HE SAYS STEPHEN AXILROD VICE CHAIRMAN OF NIKKO SECURITIES IN NEW YORK WILL BE CUTTING BACK ON SAVINGS TOO BECAUSE HE SAYS HIS SPENDING ALREADY IS AT ROCK BOTTOM HE OBSERVES THAT IF MANY PEOPLE CUT BACK ON THEIR SAVINGS THAT COULD LESSEN A MAJOR BENEFIT OF THE DEFICIT REDUCTION ACT LOWER INTEREST RATES THE TAX ACT'S MOST DIRECT IMPACT ON BUSINESS GROWTH AND INVESTMENT WILL COME FROM TENS OF THOUSANDS OF SMALL BUSINESSES WHOSE OWNERS ARE TAXED AS INDIVIDUALS THESE S. CORPORATIONS AS THEY ARE KNOWN HAVE THIRTY FIVE OR FEWER OWNERS WHILE ONLY THREE POINT SIX PERCENT OF THEM REPORTED INCOMES OF MORE THAN TWO HUNDRED THOUSAND DOLLARS THEY REPRESENTED THIRTY EIGHT PERCENT OF ALL THE INCOME FOR THAT GROUP SAYS MAURY HARRIS CHIEF ECONOMIST FOR PAINEWEBBER IT MEANS THEIR CASH FLOWS WILL NOT GROW AS FAST AND THEY WILL NOT HAVE AS MUCH TO PLOW BACK INTO THEIR BUSINESS HE SAYS HE ESTIMATES THEY WILL PAY ABOUT FIVE BILLION DOLLARS IN ADDED TAXES IVAN DEBEL PRESIDENT OF MILLER AND DEBEL PREPRESS SERVICES INCORPORATED IN NEW YORK FOR INSTANCE PLANS TO REDUCE HIS LABOR FORCE OF FORTY PEOPLE TO PAY HIS FIRM'S INCREASED TAXES IT IS EITHER THAT OR HOLD OFF PURCHASES OF NEW GRAPHIC ARTS EQUIPMENT HE NEEDS TO REMAIN COMPETITIVE WE'LL BUY THE EQUIPMENT BUT WE WILL FIND WAYS TO REDUCE LABOR COSTS WE MAY HAVE TO CUT SOME PEOPLE AND GIVE OVERTIME TO OTHERS TO DO THEIR WORK HE SAYS OTHER STRATEGIES BEGUN LAST YEAR ARE CONTINUING CHARITABLE CONTRIBUTIONS HAVE INCREASED AND MANY CHARITIES ARE LOOKING FORWARD TO HIGHER GIVING RATES THIS YEAR SOME SMALL BUSINESS OWNERS DECIDED TO TAKE MORE MARKETING TRIPS AND WILL CONTINUE DOING SO BECAUSE LIKE CHARITY GIVING IT IS LESS EXPENSIVE WHEN MARGINAL INCOME TAXES RISE WORKING SPOUSES IN SOME FAMILIES FACE CHOICES ABOUT WHAT IS COST EFFECTIVE QUOTE BETWEEN THE THIRTY NINE PERCENT TAX BRACKET AND PAYING FOR CHILD CARE QUOTE SAYS BRENT BOSTICK PRESIDENT OF THE CREDIT CARD SERVICE OPERATION OF A CLEVELAND BANK WHOSE SPOUSE IS WEIGHING A RETURN TO WORK QUOTE IT KIND OF MAKES THE WIFE WORKING DECISION MARGINAL QUOTE HE SAYS HE HASN'T FIGURED OUT HOW MUCH MORE HE WILL PAY BUT THE DAY OF RECKONING IS GOING TO COME PRETTY QUICK I'M MOST WORRIED ABOUT THE NINETEEN NINETY THREE HIT REFERRING TO THE RETROACTIVE TAX INCREASE JUST AS THE TAX ACT MAY PERSUADE MRS. BOSTICK TO STAY HOME IT ALSO WILL TAKE SOME OF THE INCENTIVE OUT OF WORKING HARDER FOR SOME ROBERT WILLARD A FINANCIAL PLANNER IN COLORADO SPRINGS COLORADO SAYS HE IS ADVISING SOME WELL OFF CLIENTS TO WORK FEWER HOURS THE MOTIVATION TO WORK HARD AND MAKE MONEY IS GONE SPEND TIME WITH YOUR FAMILY HE SAYS MR. WILLARD SAYS SOME OF THOSE CLIENTS WHO ARE CUTTING BACK THEIR WORK HOURS ARE USING THEIR EXTRA TIME TO WORK WITH START UP BUSINESSES RATHER THAN ACCEPTING INCOME THEY WILL CONTRIBUTE LEGAL OR CONSULTATION SERVICES IN RETURN FOR A STAKE IN A NEW COMPANY EVEN MORE PROFOUND IS THE DECISION FORTY EIGHT YEAR OLD JAMES VALESTRINO AND HIS THIRTY ONE YEAR OLD FIANCEE KELLY BALLINGER MADE LARGELY AS A RESULT OF THE TAX LAW CHANGE THE CALIFORNIA COUPLE HAVE PUT OFF TAKING THEIR WEDDING VOWS MARRIAGE WOULD COST US SEVEN THOUSAND DOLLARS OR EIGHT THOUSAND DOLLARS A YEAR SAYS MR. VALESTRINO WHO EARNS MORE THAN ONE HUNDRED FIFTY THOUSAND DOLLARS A YEAR RUNNING HIS FAMILY'S LABEL BUSINESS MS. BALLINGER'S INCOME AS A PURCHASING SUPERVISOR FOR A SUPERMARKET CHAIN IS LESS THAN A THIRD OF HIS AND HER TAX BRACKET WOULD JUMP TO THIRTY SIX PERCENT IF THEY GOT MARRIED QUOTE IT WOULD HIT HER ESPECIALLY HARD PUSHING HER UP TO A BRACKET THAT MAY NO LONGER MAKE IT WORTHWHILE FOR HER TO WORK QUOTE MR. VALESTRINO SAYS BEYOND THE STRATEGIZING AND THE DEBATE ABOUT WHETHER PEOPLE IN THE TWO HUNDRED THOUSAND DOLLARS TO THREE HUNDRED THOUSAND DOLLAR TAXABLE INCOME BRACKET WILL THROTTLE BACK SPENDING THERE IS LITTLE DOUBT WHAT THE TRULY WEALTHY WILL DO THE SHORT ANSWER IS IT IS COMING OUT OF SAVINGS SAYS KEVIN BANNON CHIEF INVESTMENT OFFICER OF BANK OF NEW YORK COMPANY WHICH MANAGES FUNDS FOR TRUST ACCOUNTS AND WEALTHY INDIVIDUALS BESIDES INHERITED WEALTH MANY OF HIS CLIENTS HAVE BENEFITED FROM THE RISE IN STOCK AND BOND PRICES OF THE PAST FEW YEARS PEOPLE HAVE SEEN THEIR NET WORTH RISE MORE THAN THEIR INCOMES BECAUSE OF CAPITAL APPRECIATION HE SAYS I THINK THEY ARE IN A POSITION TO SPEND A LITTLE OF THAT WEALTH ADDS MR. HARRIS WHO HAS INQUIRED OF WEALTHY COLLEAGUES AND OTHER HIGH INCOME WALL STREETERS WHAT THEY INTEND TO DO THE SUPER BIG BUCKS WILL KEEP SPENDING IF THEY ALREADY HAVE A LOT THEY CAN DIP INTO CAPITAL TO MAINTAIN THEIR LIFESTYLES HE EXPECTS SALESMEN AND TRADERS EARNING AROUND TWO HUNDRED THOUSAND DOLLARS ARE MORE LIKELY TO TIGHTEN THEIR BELTS T. J. ROGERS CHIEF EXECUTIVE AND FOUNDER OF CYPRESS SEMICONDUCTOR CORPORATION IN SAN FRANCISCO ISN'T MOANING OVER HIS INCREASE IN TAXES WHICH HE FIGURES COULD BE AS MUCH AS TWENTY THOUSAND DOLLARS BUT HE DOES HAVE A GRIPE ABOUT THE IMPACT HE THINKS IT WILL HAVE ON THE ECONOMY QUOTE THE TRAGEDY IS NOT THAT A RICH MAN WILL HAVE TO SETTLE FOR A NICE CALIFORNIA CABERNET INSTEAD OF A BOTTLE OF LAFITE ROTHSCHILD THE TRAGEDY IS THAT MONEY THAT COULD HAVE BEEN PRODUCTIVELY INVESTED WILL BE TAKEN OUT OF PEOPLE'S POCKETS AND SENT TO WASHINGTON WHERE IT WILL THEN BE WASTED JOHN ALSTON WHO OWNS AND RUNS A HUMAN RESOURCES CONSULTING FIRM IN DALLAS WITH HIS WIFE IS JUST AS ANGRY WE LIKE TO EAT OUT A LOT AND WE MIGHT EAT OUT LESS WE LIKE TO TRAVEL AND WE MIGHT TRAVEL LESS WE BOTH LIKE NICE CLOTHES AND WE MIGHT BUY LESS HE SAYS OF THE TAX IMPACT BUT HE IS ALSO DECIDED TO DO SOMETHING ABOUT IT THE TAX HIKE HAS GALVANIZED US INTO SPENDING A LOT OF MONEY ON POLITICIANS IN THE PAST YEAR FOR THE FIRST TIME HE AND HIS WIFE BEGAN CONTRIBUTING TO POLITICAL CAMPAIGNS OF FISCAL CONSERVATIVES WHO AIM TO KEEP TAXES AND SPENDING LOW WE BOTH CAME FROM HUMBLE BEGINNINGS AND WORKED HARD HE SAYS OF THE MOTIVATION FOR HIS AND HIS WIFE'S CONTRIBUTIONS QUOTE NOW WE'RE CHARACTERIZED AS PEOPLE WHO DIDN'T PAY OUR FAIR SHARE THAT'S CLASS WARFARE HUGHES AIRCRAFT COMPANY'S HUGHES NETWORK SYSTEMS WILL IMPLEMENT A SATELLITE NETWORK TO LINK THE TWO HUNDRED ONE RETAIL OUTLETS AND DISTRIBUTION CENTERS OF JAPAN'S JUSCO STORES IN A DEAL WORTH NINE POINT FIVE MILLION DOLLARS FUJITSU LIMITED WILL CONSTRUCT THE SATELLITE NETWORK FOR JUSCO USING PERSONAL EARTH STATION V. S. A. T. EQUIPMENT THAT HUGHES SUPPLIES HUGHES AIRCRAFT IS A UNIT OF GENERAL MOTORS CORPORATION'S G. M. HUGHES ELECTRONICS SPRINT CORPORATION WAS SELECTED BY FOUR SEASONS HOTELS INCORPORATED TO PROVIDE TELECOMMUNICATIONS SERVICES TO ITS PROPERTIES DURING THE NEXT THREE YEARS IN A CONTRACT VALUED AT MORE THAN NINE MILLION DOLLARS PLATINUM TECHNOLOGY INCORPORATED COMPLETED ITS ACQUISITION OF A DIVISION OF SEQUEL U. K. LIMITED AND RENAMED THE COMPANY PLATINUM U. K. TERMS WEREN'T DISCLOSED COLEMAN COMPANY ACQUIRED COLEMAN SPAS INCORPORATED CHANDLER ARIZONA FOR ABOUT EIGHT POINT FOUR MILLION DOLLARS FROM MERIDIAN SPORTS INCORPORATED A SUBSIDIARY OF MACANDREWS AND FORBES HOLDINGS INCORPORATED TYLER CORPORATION COMPLETED THE PURCHASE OF INSTITUTIONAL FINANCING SERVICES BENICIA CALIFORNIA FOR ABOUT FIFTY MILLION DOLLARS AND THE ASSUMPTION OF RESPONSIBILITY FOR SEASONAL WORKING CAPITAL DEBT SEAGRAM COMPANY'S TROPICANA PRODUCTS INCORPORATED UNIT SAID IT AGREED DEFINITIVELY TO ACQUIRE HITCHCOCK A LEADING GERMAN PREMIUM FRUIT JUICE BRAND FROM CLOSELY HELD DEINHARD AND COMPANY THE INTERNAL REVENUE SERVICE AND THE SECURITIES AND EXCHANGE COMMISSION HAVE DECIDED TO COORDINATE THEIR EFFORTS TO POLICE THE TAX EXEMPT BOND INDUSTRY THE AGREEMENT COMES AT A TIME WHEN BOTH AGENCIES HAVE STEPPED UP THEIR SCRUTINY OF THE MUNICIPAL BOND MARKET WHICH FROM TIME TO TIME HAS GENERATED ABUSES THAT HAVE POSED QUESTIONS UNDER BOTH TAX AND SECURITIES LAW SENIOR I. R. S. AND S. E. C. OFFICIALS AGREED ON THE COORDINATION INITIATIVE AT A RECENT MEETING ACCORDING TO THE I. R. S. THE I. R. S. ALSO PROVIDED NEW DETAILS YESTERDAY ABOUT ITS STEPPED UP ENFORCEMENT IN THE MUNICIPAL BOND AREA THE AGENCY SAID IT'S INCREASING THE STAFF DEVOTED TO BOND MATTERS EXPANDING THE BOND TRAINING OF AGENTS AND OTHER STAFFERS INCREASING THE NUMBER OF EXAMINATIONS AND INQUIRIES AND DEVELOPING METHODS TO BETTER TARGET POTENTIAL AREAS OF ABUSE MARCUS OWENS DIRECTOR OF THE I. R. S.'S EXEMPT ORGANIZATIONS TECHNICAL UNIT SAID THE S. E. C. AND THE I. R. S. AGREED IT WOULD BE IN THEIR MUTUAL INTEREST TO SHARE AS MUCH MUNICIPAL BOND INFORMATION AS POSSIBLE CONSISTENT WITH CONFIDENTIALITY LAWS QUOTE OBVIOUSLY VIOLATIONS ON ONE SIDE COULD LEAD TO VIOLATIONS ON THE OTHER SIDE QUOTE SAID RICHARD CHIRLS A BOND ATTORNEY AT ORRICK HERRINGTON AND SUTCLIFFE ABOUT THE INTERPLAY BETWEEN THE TAX AND SECURITIES LAWS IN THE MUNI AREA BY WORKING TOGETHER IT WILL MAKE FOR A MUCH MORE EFFICIENT FEDERAL GOVERNMENT IN BOTH SETS OF LAWS ASSISTANT I. R. S. COMMISSIONER JAMES MCGOVERN GOT THE COORDINATION INITIATIVE ROLLING LATE LAST YEAR SAYING IN A LETTER TO S. E. C. ENFORCEMENT CHIEF WILLIAM MCLUCAS THAT ENHANCED COORDINATION COULD BE OF GREAT VALUE TO BOTH OUR COMPLIANCE PROGRAMS SOME ADVOCATES OF STRONGER MUNI ENFORCEMENT HAVE URGED S. E. C. ACTION IN CASES INVOLVING BONDS THAT ARE SOLD TO INVESTORS AS TAX EXEMPT SECURITIES BUT ARE LATER DECLARED TAXABLE THE I. R. S. SAID CERTAIN AREAS OF ARBITRAGE RELATED ABUSES WOULD BE ON ITS FRONTBURNER ARBITRAGE IS EARNED IN THE MUNI MARKET BY INVESTING BOND PROCEEDS IN HIGHER YIELDING OBLIGATIONS THE AGENCY SAID IT WILL FOCUS ON OPEN MARKET PURCHASES OF TREASURY OBLIGATIONS FOR ADVANCE REFUNDING ESCROWS AND LONG TERM GUARANTEED INVESTMENT CONTRACTS IN PARTICULAR IT SAID SOME ISSUERS OF TAX EXEMPT BONDS MAY HAVE BEEN PAYING MORE THAN THE FAIR MARKET VALUE FOR INVESTMENTS PURCHASED WITH THE PROCEEDS OF THE BONDS ANOTHER AREA OF CONCERN IS BONDS THAT BACKLOAD THE PAYMENT OF DEBT SERVICE SOME OF THESE BONDS ARE ISSUED FOR LEGITIMATE PURPOSES IT SAID BUT THEY HAVE A PARTICULAR POTENTIAL FOR ARBITRAGE AND OTHER TYPES OF NONCOMPLIANCE NATIONAL STEEL CORPORATION SAID IT EXPECTS TO REPORT A FOURTH QUARTER CHARGE OF ONE HUNDRED TWENTY MILLION DOLLARS TO ONE HUNDRED THIRTY FIVE MILLION DOLLARS LARGELY DUE TO TEMPORARY IDLING OF ITS NATIONAL STEEL PELLET COMPANY SUBSIDIARY THE CHARGE INCLUDES AN INVENTORY ADJUSTMENT OF ABOUT FIFTEEN MILLION DOLLARS CAUSED BY THE DEPLETION OF HIGHER COST IRON ORE PELLET INVENTORY LEVELS DUE TO THE PLANT'S IDLING ALONG WITH THE SHIFT IN THE COST AND MIX OF STEEL INVENTORY LEVELS ALSO INCLUDED IN THE CHARGE IS FIFTEEN MILLION DOLLARS TO TWENTY MILLION DOLLARS FOR EARLY ADOPTION OF RETIREMENT BENEFITS ABOUT NINETY MILLION DOLLARS TO ONE HUNDRED MILLION DOLLARS OF THE CHARGE RELATES TO THE IDLING OF THE KEEWATIN MINNESOTA PELLET PLANT WHICH EMPLOYS ABOUT SEVEN HUNDRED IT HAS BEEN CLOSED SINCE AUGUST FIRST BECAUSE OF A STRIKE THE COMPANY ANNOUNCED IN MID OCTOBER THAT IT WOULD IDLE THE PLANT BECAUSE IT WAS UNABLE TO REACH A NEW CONTRACT WITH THE UNITED STEELWORKERS OF AMERICA AND AS A RESULT MISSED A DEADLINE TO SIGN A LONG TERM INTERRUPTIBLE POWER CONTRACT THE STEELMAKER ABOUT SEVENTY PERCENT OWNED BY JAPAN'S N. K. K. CORPORATION ALSO SAID IT WILL LOWER THE DISCOUNT RATE USED TO CALCULATE PENSION LIABILITIES TO SEVEN POINT FIVE PERCENT FROM EIGHT POINT SEVEN FIVE PERCENT WHICH IT SAID WOULDN'T HAVE AN IMPACT ON NATIONAL'S INCOME STATEMENT BUT COULD QUOTE MINIMALLY QUOTE AFFECT SHAREHOLDERS' EQUITY THE COMPANY INTENDS TO ANNOUNCE ITS NINETEEN NINETY THREE RESULTS ON OR ABOUT JANUARY TWENTY SIXTH NATIONAL WITH TEN THOUSAND EMPLOYEES IS THE U. S.'S FOURTH LARGEST INTEGRATED STEEL PRODUCER WITH ANNUAL SHIPMENTS OF ABOUT FIVE MILLION TONS OF FLAT ROLLED PRODUCTS BIOCRYST PHARMACEUTICALS INCORPORATED AN INITIAL OFFERING OF TWO POINT FIVE MILLION COMMON SHARES VIA DILLON READ AND COMPANY AND NEEDHAM AND COMPANY CEPHALON INCORPORATED AN OFFERING OF THREE MILLION COMMON SHARES VIA COWEN AND COMPANY HAMBRECHT AND QUIST INCORPORATED AND ROBERTSON STEPHENS AND COMPANY GLOBAL VILLAGE COMMUNICATION INCORPORATED AN INITIAL OFFERING OF TWO POINT FOUR MILLION COMMON SHARES VIA MONTGOMERY SECURITIES AND HAMBRECHT AND QUIST ISTITUTO MOBILIARE ITALIANO AN INITIAL OFFERING OF THIRTY FIVE MILLION COMMON SHARES VIA MORGAN STANLEY AND COMPANY C. S. FIRST BOSTON MABON SECURITIES CORPORATION AND S. G. WARBURG AND COMPANY TRISM INCORPORATED AN INITIAL OFFERING OF ONE MILLION EIGHT HUNDRED THIRTY THOUSAND COMMON SHARES VIA ALEXANDER BROWN AND SONS INCORPORATED AND SMITH BARNEY SHEARSON INCORPORATED U. S. F. AND G. CORPORATION A SHELF OFFERING FOR TWO HUNDRED MILLION DOLLARS OF DEBT SECURITIES PREFERRED STOCK COMMON STOCK AND WARRANTS THE COMPTROLLER OF THE CURRENCY GAVE INTERSTATE BANKING A BOOST BY ALLOWING FIRST FIDELITY BANCORP TO CONSOLIDATE ITS BRANCHES IN NEW JERSEY AND PENNSYLVANIA INTO ONE UNIFIED SYSTEM THE DECISION THE FIRST OF ITS KIND WILL ALLOW THE BANK HOLDING COMPANY BASED IN NEWARK N. J. TO SAVE MILLIONS OF DOLLARS A YEAR BY RUNNING A SEAMLESS OPERATION IN THE TWO ADJACENT STATES UNTIL THE DECISION BANKING LAWS REQUIRED FIRST FIDELITY TO RUN SEPARATELY ORGANIZED BANKS IN EACH STATE FIRST FIDELITY NOW CAN QUOTE BETTER SERVE ITS CUSTOMERS IN ITS CROSS STATE METROPOLITAN MARKETS IN PENNSYLVANIA AND NEW JERSEY QUOTE COMPTROLLER EUGENE LUDWIG SAID THE DECISION STOPS WELL SHORT OF GIVING BANK HOLDING COMPANIES WITH OPERATIONS IN SEVERAL STATES THE AUTHORITY TO RUN THEIR BANKS AS ONE UNIFIED BRANCH NETWORK RATHER THAN AS SEPARATELY CHARTERED AND MANAGED BANKS THAT WOULD REQUIRE CONGRESS TO CHANGE FEDERAL BANKING LAW BUT IT WILL ALLOW SIGNIFICANT CONSOLIDATION AND COST SAVINGS BY COMPANIES WITH BANKS OPERATING ON BOTH SIDES OF A STATE LINE NATIONSBANK CORPORATION ALREADY HAS APPLIED TO FOLD BANKS IN MARYLAND AND THE DISTRICT OF COLUMBIA INTO ONE SYSTEM RODGIN COHEN A BANKING LAWYER WITH SULLIVAN AND CROMWELL SAID THAT A NUMBER OF OTHER BANKS ARE POISED TO APPLY FOR SIMILAR CONSOLIDATION YESTERDAY MR. LUDWIG JOCULARLY REFERRED TO THE COMPTROLLER'S DECISION AS THE COHEN PLAN BECAUSE IT WAS MR. COHEN WHO HELPED FIGURE OUT HOW TO USE A SEEMINGLY TECHNICAL CLAUSE IN FEDERAL BANKING LAW TO ACHIEVE THE TYPE OF CONSOLIDATION BANKS HAVE BEEN SEEKING THE LAW ALLOWS A NATIONAL BANK TO MOVE ITS HEADQUARTERS TO ANOTHER LOCATION WITHIN THIRTY MILES IN THE PAST WHEN THE COMPTROLLER APPROVED SUCH MOVES ACROSS STATE LINES THE BANK HAD TO SHED ITS BRANCH NETWORK IN THE STATE IT WAS LEAVING MR. COHEN PERSUADED THE COMPTROLLER THAT FIRST FIDELITY SHOULD BE ALLOWED TO TRANSFER THE HEADQUARTERS OF FIRST FIDELITY BANK OF PENNSYLVANIA TO SALEM N. J. FROM PHILADELPHIA AND TO RUN THE ENTIRE SYSTEM AS ONE ENTITY OUT OF NEW JERSEY FIRST FIDELITY HAS ASSETS OF MORE THAT THIRTY ONE BILLION DOLLARS BOTH MR. LUDWIG AND TREASURY SECRETARY LLOYD BENSTEN HAVE SAID THAT THEY FAVOR ALLOWING BANKS TO RUN MULTISTATE BRANCH NETWORKS AND SUCH A CHANGE IS AT THE TOP OF THE LEGISLATIVE AGENDA OF SUCH BANKING COMPANIES AS BANKAMERICA CORPORATION AND NATIONSBANK DESPITE STRONG SUPPORT FOR BRANCHING IN CONGRESS THE LEGISLATION HAS FAILED BECAUSE OF DISPUTES OVER THE SCOPE OF INSURANCE SALES BY BANKS CARL KARCHER ENTERPRISES INCORPORATED SAID IT SIGNED A DEFINITIVE LETTER OF INTENT TO BECOME A FRANCHISEE OF BOSTON CHICKEN INCORPORATED WITH PLANS TO DEVELOP AND OPERATE AS MANY AS THREE HUNDRED BOSTON CHICKEN OUTLETS IN SOUTHERN CALIFORNIA AND SACRAMENTO CALIFORNIA CARL KARCHER ENTERPRISES WHICH OPERATES THE CARL'S JUNIOR HAMBURGER CHAIN SAID THE DEAL WILL PERMIT IT QUOTE TO CAPTURE A NEW CONSUMER MARKET SEGMENT WHICH IS DISTINCT AND SEPARATE FROM OUR CURRENT CUSTOMERS QUOTE THE COMPANY EXPECTS TO OPEN AT LEAST SIXTY STORES BY THE END OF NINETEEN NINETY FIVE IT SAID THAT THE DEAL WON'T HAVE AN IMPACT THE EXPANSION STRATEGIES CURRENTLY UNDER WAY AT CARL'S JUNIOR IN NASDAQ STOCK MARKET TRADING YESTERDAY CARL KARCHER SHARES SOARED TWO DOLLARS OR SEVENTEEN PERCENT TO THIRTEEN POINT SIX TWO FIVE DOLLARS AND BOSTON CHICKEN SHARES JUMPED THREE DOLLARS AND SEVENTY FIVE CENTS OR TEN PERCENT TO FORTY ONE DOLLARS THE SPOTLIGHT HAS BEEN ON CARL KARCHER ENTERPRISES RECENTLY LARGELY BECAUSE OF THE PERSONAL FINANCIAL TROUBLES OF ITS FORMER CHAIRMAN CARL N. KARCHER THE COMPANY LAST MONTH SAID MR. KARCHER WOULD BE NAMED CHAIRMAN EMERITUS IF HE COMPLETES A COMPLICATED REFINANCING OF HIS PERSONAL BANK DEBT BOSTON CHICKEN WHICH HAD A VERY SUCCESSFUL INITIAL PUBLIC OFFERING RECENTLY CURRENTLY OPERATES TWO HUNDRED TWENTY ONE STORES SERVING ROTISSERIE CHICKEN AND HAS AMBITIOUS GROWTH PLANS IT SAID THAT THE TERRITORY COVERED BY THE KARCHER AGREEMENT IS THE LARGEST IT HAS GRANTED TO DATE LAST WEEK IT AGREED TO ACQUIRE EIGHTY FOUR ROY ROGERS RESTAURANTS IN THE PHILADELPHIA AREA FROM HARDEE'S FOOD SYSTEMS INCORPORATED FOR TWENTY TWO POINT THREE MILLION DOLLARS BEAR STEARNS COMPANIES SAID ITS INVESTMENT BANKING AND BROKERAGE UNIT OPENED A REPRESENTATIVE OFFICE IN BEIJING DONALD TANG SENIOR MANAGING DIRECTOR WILL BE THE FIRM'S REPRESENTATIVE AND YUCHENG DING WILL BE PERMANENTLY BASED IN THE NEW OFFICE BEAR STEARNS RECEIVED THE LICENSE TO OPEN THE REPRESENTATIVE OFFICE DECEMBER TWENTY NINTH FROM THE PEOPLE'S BANK OF CHINA MR. TANG IS ALSO PRESIDENT OF BEAR STEARNS ASIA WHICH IS BASED IN HONG KONG LUFKIN INDUSTRIES INCORPORATED SAID IT ENDED ITS EFFORTS TO SELL ITS TRAILER DIVISION OPERATIONS AND RELATED ASSETS LUFKIN SAID THAT SINCE ITS ANNOUNCEMENT OF PLANS TO SELL ITS TRAILER DIVISION IN NINETEEN NINETY ONE THE UNIT HAS SHOWN POSITIVE CASH FLOW AND FOR THE FIRST NINE MONTHS OF NINETEEN NINETY THREE IT EARNED SIX HUNDRED SEVENTY ONE THOUSAND DOLLARS DURING THAT PERIOD THE COMPANY OVERALL REPORTED A LOSS OF ONE MILLION DOLLARS OR FIFTEEN CENTS A SHARE LUFKIN A MAKER OF OIL FIELD PUMPING UNITS SAID IT ANTICIPATES ITS TRAILER DIVISION WILL TURN A PROFIT THIS YEAR THE COMMODITY FUTURES TRADING COMMISSION FILED ADMINISTRATIVE ENFORCEMENT ACTIONS AGAINST TWO TRADERS ACCUSED OF UNLEASHING A WAVE OF UNAUTHORIZED FUTURES TRADES AT THE CHICAGO BOARD OF TRADE THE COMPLAINT ACCUSES ANTHONY P. CATALFO AND DARRELL M. ZIMMERMAN TWO FORMER C. B. O. T. TRADERS OF ENGAGING IN A SCHEME TO MANIPULATE PRICES OF TREASURY BOND FUTURES AND OPTIONS CONTRACTS MESSRS ZIMMERMAN AND CATALFO HAVE ALSO BEEN INDICTED ON FRAUD CHARGES BY THE U. S. ATTORNEY'S OFFICE IN CHICAGO THE TWO MEN WERE UNAVAILABLE FOR COMMENT ON OCTOBER TWENTY SECOND NINETEEN NINETY TWO THE C. F. T. C. COMPLAINT ALLEGES BOTH MEN ACTED TOGETHER IN A SCHEME TO INFLUENCE T. BOND OPTIONS PRICES BY SELLING THOUSANDS OF FUTURES CONTRACTS ON THE C. B. O. T. FLOOR ACCORDING TO THE COMPLAINT THE TWO MEN HAD NEITHER AUTHORIZATION TO EXECUTE THE HUGE TRADES NOR SUFFICIENT FUNDS TO PAY FOR THE TRADES WHICH PRODUCED ABOUT EIGHT POINT FIVE MILLION DOLLARS IN LOSSES FOR LEE B. STERN AND COMPANY THE FIRM THAT CLEARED MR. ZIMMERMAN'S TRADES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JANUARY SEVENTH NINETEEN NINETY FOUR 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 BLOOMINGTON INDIANA WILL REDEEM ON FEBRUARY FIRST NINETEEN NINETY FOUR ITS NINE POINT THREE SEVEN FIVE PERCENT FIRST MORTGAGE BONDS SERIES A NINETEEN EIGHTY DUE FEBRUARY FIRST TWO THOUSAND SIX BANK ONE INDIANAPOLIS IS TRUSTEE MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES AUTHORITY WILL REDEEM ON FEBRUARY SEVENTH NINETEEN NINETY FOUR THE FOLLOWING REVENUE REFUNDING BONDS EDENWALD ISSUE SERIES NINETEEN EIGHTY SIX DUE JAN ONE OF THE INDICATED YEARS SIX POINT FIVE PERCENT DUE NINETEEN NINETY FIVE SIX POINT SEVEN FIVE PERCENT DUE NINETEEN NINETY SIX SEVEN PERCENT DUE NINETEEN NINETY SEVEN SEVEN POINT TWO FIVE PERCENT DUE NINETEEN NINETY EIGHT SEVEN POINT FIVE PERCENT DUE TWO THOUSAND TWO AND SEVEN POINT SEVEN FIVE PERCENT DUE TWO THOUSAND FOURTEEN MERCANTILE SAFE DEPOSIT AND TRUST COMPANY BALTIMORE IS TRUSTEE TIME WARNER INCORPORATED'S ATLANTIC RECORDS DIVISION SAID IT WILL NAME DANNY GOLDBERG AS ITS PRESIDENT A JOB THAT HAS BEEN VACANT SINCE NINETEEN NINETY MR. GOLDBERG CURRENTLY SENIOR VICE PRESIDENT AT ATLANTIC IS CREDITED WITH WOOING CUTTING EDGE ROCK BANDS TO ATLANTIC BOOSTING THE LABEL'S MARKET SHARE IN NINETEEN NINETY THREE HE FILLS THE POST LAST HELD BY DOUG MORRIS WHO WAS PROMOTED THREE YEARS AGO TO CO CHAIRMAN AND CO CHIEF EXECUTIVE OFFICER JOINTLY HEADING THE COMPANY WITH AHMET ERTEGUN WHO CO FOUNDED IT IN THE NINETEEN FORTIES WITHIN TIME WARNER ATLANTIC HAS BEEN OVERSHADOWED IN RECENT YEARS BY SISTER LABELS WARNER MUSIC AND ELEKTRA RECORDS BUT MR. MORRIS HAS BEEFED UP ATLANTIC BY LATELY HIRING A NEW GENERATION OF CREATIVE YOUNG MANAGERS LED BY MR. GOLDBERG ATLANTIC IS NOW DOING BETTER IN MANY GENRES INCLUDING COUNTRY MUSIC AND BLACK POP MUSIC BUT ATTRACTING MR. GOLDBERG TO THE COMPANY EIGHTEEN MONTHS AGO WAS PART OF A STRATEGY TO CHANGE ATLANTIC'S STODGY IMAGE IN ROCK MUSIC MR. GOLDBERG FORTY THREE YEARS OLD PREVIOUSLY MANAGED A ROSTER OF ARTISTS THAT INCLUDED FOLK ROCKER BONNIE RAITT AND NIRVANA ONE OF THE HOTTEST GRUNGE ROCK GROUPS OF THE NINETIES AS A SENIOR VICE PRESIDENT MR. GOLDBERG ENGINEERED THE ACQUISITION OF THREE SMALL BUT PRESTIGIOUS INDEPENDENT ROCK LABELS BEGGAR'S BANQUET MAMMOTH RECORDS AND MATADOR RECORDS MR. GOLDBERG ALSO SIGNED STONE TEMPLE PILOTS WHOSE FIRST ALBUM WITH ATLANTIC HAS SOLD THREE MILLION COPIES SO FAR MAKING IT ATLANTIC'S MOST SUCCESSFUL ROCK ACT IN NINETEEN NINETY THREE STEVE STEWART MANAGER OF STONE TEMPLE PILOTS BAND SAID HE HAD BEEN WARNED TO AVOID SIGNING WITH ATLANTIC QUOTE BECAUSE EVERYBODY SAID IT WAS STALE QUOTE BUT WAS CONVINCED BY MR. GOLDBERG THAT QUOTE HE REALLY UNDERSTOOD HOW TO BUILD A BAND'S CAREER NOT JUST PRODUCE ONE HIT WONDERS QUOTE IT REMAINS TO BE SEEN HOW THE GROUP'S CAREER WILL PLAY OUT ALONG THE WAY MR. GOLDBERG ADVISED STONE TEMPLE PILOTS TO TURN DOWN WHAT SEEMED LIKE A GREAT OFFER TO BE THE OPENING ACT FOR ROCK BAND AEROSMITH THE YOUNG BAND WOULD HAVE BEEN EXPOSED TO A HUGE AUDIENCE BUT MR. GOLDBERG FELT THE CONCERTS WOULDN'T ATTRACT THE YOUNG HIP AUDIENCE THAT WOULD BUILD THE BAND'S STREET CREDIBILITY INSTEAD HE ADVISED THEM TO TOUR WITH A GRUNGIER GROUP CALLED BUTTHOLE SURFERS AND THOUGH THE AUDIENCES WERE SMALLER THE BAND BELIEVES THAT TOUR HELPED THEM GET PLAYED ON COLLEGE RADIO STATIONS AND GAIN THE CREDIBILITY THEY WANTED NIXING THE AEROSMITH TOUR GOT LOTS OF ATTENTION IN THE MUSIC PRESS WHICH WAS FINE WITH MR. GOLDBERG WE REALLY MILKED THAT CONTROVERSY SAYS MR. GOLDBERG I'M TRYING TO REINVENT ATLANTIC SO IT BECOMES ONE OF THE MOST ATTRACTIVE LABELS FOR MODERN AND ALTERNATIVE ROCKERS THE KEY U. S. AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE SIX PERCENT THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST SEVENTY FIVE PERCENT OF THE NATION'S THIRTY LARGEST BANKS FEDERAL FUNDS THREE AND ONE EIGHTH PERCENT HIGH THREE PERCENT LOW TWO AND FIFTEEN SIXTEENTHS PERCENT NEAR CLOSING BID THREE PERCENT OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF ONE MILLION DOLLARS OR MORE SOURCE PREBON YAMANE U. S. A. INCORPORATED DISCOUNT RATE THREE PERCENT THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY FIVE PERCENT THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INCORPORATED COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORPORATION THREE POINT OH SIX PERCENT THIRTY TO FIFTY NINE DAYS THREE POINT OH NINE PERCENT SIXTY TO EIGHTY NINE DAYS THREE POINT ONE ONE PERCENT NINETY TO ONE HUNDRED NINETEEN DAYS THREE POINT ONE FIVE PERCENT ONE HUNDRED TWENTY TO ONE HUNDRED FORTY NINE DAYS THREE POINT ONE SEVEN PERCENT ONE HUNDRED FIFTY TO ONE HUNDRED SEVENTY NINE DAYS THREE POINT TWO FIVE PERCENT ONE HUNDRED EIGHTY TO TWO HUNDRED THIRTY NINE DAYS THREE POINT THREE THREE PERCENT TWO HUNDRED FORTY TO TWO HUNDRED SEVENTY DAYS COMMERCIAL PAPER HIGH GRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS THREE POINT ONE THREE PERCENT THIRTY DAYS THREE POINT ONE FIVE PERCENT SIXTY DAYS THREE POINT ONE NINE PERCENT NINETY DAYS CERTIFICATES OF DEPOSIT TWO POINT FIVE FOUR PERCENT ONE MONTH TWO POINT FIVE SIX PERCENT TWO MONTHS TWO POINT SIX ONE PERCENT THREE MONTHS TWO POINT SEVEN FIVE PERCENT SIX MONTHS TWO POINT NINE SEVEN PERCENT ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE C. D.S USUALLY ON AMOUNTS OF ONE MILLION DOLLARS AND MORE THE MINIMUM UNIT IS ONE HUNDRED THOUSAND DOLLARS TYPICAL RATES IN THE SECONDARY MARKET THREE POINT ONE OH PERCENT ONE MONTH THREE POINT ONE SEVEN PERCENT THREE MONTHS THREE POINT TWO EIGHT PERCENT SIX MONTHS BANKERS ACCEPTANCES THREE POINT OH ONE PERCENT THIRTY DAYS THREE POINT OH THREE PERCENT SIXTY DAYS THREE POINT OH SIX PERCENT NINETY DAYS THREE POINT OH NINE PERCENT ONE HUNDRED TWENTY DAYS THREE POINT ONE FOUR PERCENT ONE HUNDRED FIFTY DAYS THREE POINT ONE NINE PERCENT ONE HUNDRED EIGHTY DAYS OFFERED RATES OF NEGOTIABLE BANK BACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS THREE AND ONE EIGHTH PERCENT THREE PERCENT ONE MONTH THREE AND THREE SIXTEENTHS PERCENT THREE AND ONE SIXTEENTH PERCENT TWO MONTHS THREE AND ONE QUARTER PERCENT THREE AND ONE EIGHTH PERCENT THREE MONTHS THREE AND FIVE SIXTEENTHS PERCENT THREE AND THREE SIXTEENTHS PERCENT FOUR MONTHS THREE AND THREE EIGHTHS PERCENT THREE AND ONE QUARTER PERCENT FIVE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT THREE AND FIVE SIXTEENTHS PERCENT SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR THREE AND ONE EIGHTH PERCENT ONE MONTH THREE AND ONE QUARTER PERCENT THREE MONTHS THREE AND SEVEN SIXTEENTHS PERCENT SIX MONTHS THREE AND THREE QUARTERS PERCENT 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 FIVE POINT FIVE OH PERCENT GERMANY FIVE POINT EIGHT SEVEN PERCENT JAPAN THREE PERCENT SWITZERLAND SEVEN POINT FIVE OH PERCENT BRITAIN FIVE POINT FIVE OH PERCENT THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY TENTH NINETEEN NINETY FOUR AUCTION OF SHORT TERM U. S. GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF TEN THOUSAND DOLLARS TO ONE MILLION DOLLARS THREE POINT OH TWO PERCENT THIRTEEN WEEKS THREE POINT ONE EIGHT PERCENT TWENTY SIX WEEKS FEDERAL HOME LOAN MORTGAGE CORPORATION FREDDIE MAC POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT FOUR PERCENT SIXTY DAYS SIX POINT NINE FOUR PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES THREE POINT EIGHT SEVEN FIVE PERCENT TWO PERCENT RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON THIRTY YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN THIRTY DAYS SIX POINT EIGHT TWO PERCENT SIXTY DAYS SIX POINT NINE TWO PERCENT STANDARD CONVENTIONAL FIXED RATE MORTGAGES FIVE POINT OH FIVE PERCENT SIX HALVES RATE CAPPED ONE YEAR ADJUSTABLE RATE MORTGAGES SOURCE TELERATE SYSTEMS INCORPORATED MERRILL LYNCH READY ASSETS TRUST TWO POINT SEVEN FOUR PERCENT ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST THIRTY DAYS NOT A FORECAST OF FUTURE RETURNS COCA COLA COMPANY IN A BOLD MOVE TO STEAL SOME COMMERCIAL THUNDER FROM SPONSORS OF SUPER BOWL XXVIII IS STARTING ITS OWN CABLE TELEVISION NETWORK EVEN THOUGH THE NETWORK HAS A LIFE EXPECTANCY OF ONLY FOUR DAYS THE PROGRAMMING WILL BE SHOWN IN PRIME TIME FROM JANUARY TWENTY SEVENTH TO JANUARY THIRTIETH AND IT WILL ORIGINATE FROM A NEW ONE HUNDRED FORTY FIVE SEAT TELEVISION STUDIO ADJACENT TO THE COCA COLA MUSEUM IN ATLANTA HOST CITY TO THIS YEAR'S SUPER BOWL A COCA COLA SPOKESMAN IN ATLANTA DECLINED TO COMMENT PENDING A NEWS CONFERENCE TODAY HOWEVER ACCORDING TO SEVERAL OFFICIALS WITH KNOWLEDGE OF THE PLAN COKE IS TRYING TO BREAK THROUGH THE TRADITIONAL SUPER BOWL ADVERTISING HYPE THE PROGRAMMING IS EXPECTED TO INCLUDE QUOTE BEHIND THE SCENE QUOTE REPORTS ABOUT PREPARATIONS FOR THE JANUARY THIRTIETH GAME AT THE GEORGIA DOME AS WELL AS LIFESTYLE SEGMENTS ABOUT THE PLAYERS THE CHANNEL WILL BE SEEN IN THREE MILLION HOUSEHOLDS SUBSCRIBING TO SPORTSOUTH WHICH IS AVAILABLE IN SEVEN SOUTHEASTERN STATES FURTHERMORE NEGOTIATIONS ARE UNDER WAY TO CARRY THE CHANNEL IN CABLE SYSTEMS THAT COULD REACH THIRTY SEVEN MILLION TO FORTY FIVE MILLION HOUSEHOLDS NO MATTER HOW MANY VIEWERS COKE ULTIMATELY CAPTURES THAT FIGURE WILL CERTAINLY BE OVERSHADOWED BY THE EXPECTED AUDIENCE OF OVER ONE HUNDRED MILLION WATCHING THE ACTUAL SUPER BOWL BROADCAST IN AN UNUSUAL MOVE ADVERTISING ON COKE'S CHANNEL WON'T BE CONFINED TO THE SOFT DRINK ACCORDING TO INDUSTRY OFFICIALS THE CHANNEL PLANS TO ACCEPT ADVERTISING FROM OTHER COMPANIES THE COKE CHANNEL ACTUALLY WILL EXIST WITHIN A LARGER NICHE NETWORK N. F. L. SUPER BOWL CHANNEL WITH SUPER BOWL RELATED PROGRAMMING FROM THE N. F. L. BUT OFFICIALS SAY THE COKE CHANNEL WILL BE SEEN IN PRIME TIME WHEN THE AUDIENCE IS LARGEST THE COCA COLA BIG T. V. NETWORK WILL BROADCAST A TOTAL OF SEVEN HOURS INCLUDING ONE HOUR JANUARY TWENTY SEVENTH TWO HOURS JANUARY TWENTY EIGHTH THREE HOURS THE NIGHT BEFORE THE SUPER BOWL AND ONE HOUR THE NIGHT OF THE FOOTBALL CLASSIC A COKE LOGO WILL MOST LIKELY APPEAR ON THE LOWER RIGHT PORTION OF THE SCREEN THROUGHOUT THE PROGRAMS IF THE SUPER BOWL RELATED TELECASTS PERFORM WELL FROM A MARKETING STANDPOINT COKE MAY ESTABLISH SIMILAR NETWORKS AROUND OTHER MAJOR EVENTS INCLUDING COLLEGE BASKETBALL PLAYOFFS IN SPITE OF COKE'S OBVIOUS INTEREST IN THE SUPER BOWL THE COMPANY ISN'T A SPONSOR OF THE GAME WHICH WILL BE BROADCAST BY GENERAL ELECTRIC COMPANY'S N. B. C. NETWORK INSTEAD RIVALS PEPSI COLA A UNIT OF PEPSICO INCORPORATED AND SEVEN UP A UNIT OF DOCTOR PEPPER SLASH SEVEN UP COMPANIES ARE ADVERTISING AT A HEFTY NINE HUNDRED THOUSAND DOLLARS FOR EACH HALF MINUTE COMMERCIAL IN A RELATED MOVE COKE RECENTLY SIGNED A SPONSORSHIP AGREEMENT WITH THE N. F. L. ESTIMATED AT OVER FIFTY MILLION DOLLARS TED SHAKER A FORMER EXECUTIVE PRODUCER OF C. B. S. SPORTS A UNIT OF C. B. S. INCORPORATED IS IN CHARGE OF THE COKE CABLE PROGRAMMING ON CAMERA PERSONALITIES INCLUDE C. B. S. SPORTS CORRESPONDENTS PAT O'BRIEN TERRY BRADSHAW LESLEY VISSER AND JIM GRAY PEPSI WHICH HAS ADVERTISED ON THE SUPER BOWL SINCE NINETEEN EIGHTY FIVE IS USING THREE CELEBRITIES THIS YEAR IN ITS COMMERCIALS CREATED BY OMNICOM GROUP'S B. B. D. O. MICHAEL RICHARDS WHO PLAYS THE WACKY NEIGHBOR KRAMER IN N. B. C.'S SEINFELD SERIES MODEL CINDY CRAWFORD AND COMEDIAN RODNEY DANGERFIELD THE THREE ARE SCHEDULED TO APPEAR IN ONE AD ASKED TO COMMENT ON COKE'S PLANS A PEPSI SPOKESWOMAN SAID ANYTHING THAT CREATES MORE EXCITEMENT AND GETS MORE PEOPLE TO TUNE INTO THE GAME IS O. K.